ARCHITECTS AND ENGINEERS ARE BUILDING A SHELTER AGAINST THE RAVAGES OF LITIGATION BORROWING TECHNIQUES FROM THE MEDICAL PROFESSION THEY HAVE LAUNCHED A COUNTERATTACK THAT HAS SLASHED SIGNIFICANTLY THE NUMBER OF INSURANCE CLAIMS FILED BY DESIGN FIRMS THAT IS WELCOME RELIEF FOR PROFESSIONS THAT ROUTINELY CONTEND WITH CLIENT COMPLAINTS ABOUT EVERYTHING FROM THE ACCURACY OF ESTIMATES TO THE COLOR OF THE CARPETING CHOSEN BY A SUBCONTRACTOR THE ARCHITECTS AND ENGINEERS HAVE TAKEN UP A TWOPRONGED STRATEGY FIRST THEY HAVE SOUGHT REFUGE BEHIND MUCH TIGHTER CONTRACTS WHICH HELP WARD OFF BREACHOFCONTRACT SUITS BUT THEY HAVE ALSO ERECTED UNUSUAL NEW LEGAL HURDLES FOR UNHAPPY CLIENTS AND OTHERS WHO WANT TO SUE NOW PLAINTIFFS IN SOME STATES MUST GET ANOTHER ARCHITECT OR ENGINEER TO AGREE THAT THEIR COMPLAINT IS LEGITIMATE EITHER BEFORE A SUIT IS FILED OR VERY SOON AFTERWARD IF THEY FAIL TO GET THIS GOAHEAD THE LAWSUIT IS DISMISSED AND IN AT LEAST ONE STATE DAMAGES CAN BE AWARDED AGAINST THE PLAINTIFF CERTIFICATES OF MERIT ARE REQUIRED IN CALIFORNIA GEORGIA AND COLORADO SAYS SCOTT B GREENE AN ARCHITECTURALLIABILITY LAWYER WITH THE CHICAGO LAW FIRM POPE & JOHN HAWAII AND FLORIDA HAVE A WEEDINGOUT PROCESS IN WHICH PLAINTIFFS TAKE THEIR COMPLAINTS BEFORE A PANEL OF INDUSTRY EXPERTS FOR A NONBINDING REVIEW AND ARCHITECTS ARE LOBBYING FOR SIMILAR LAWS OR PANELS IN NEW JERSEY WASHINGTON STATE AND NORTH CAROLINA AMONG OTHERS ACCORDING TO PAUL L GENECKI PRESIDENT OF SCHINNERER MANAGEMENT SERVICES INC A LEADING INSURER OF DESIGN PROFESSIONALS AND A UNIT OF MARSH & MCLENNAN COS NEW YORK TOGETHER THESE TACTICS HAVE SHARPLY LOWERED THE PROPORTION OF INSURED DESIGN FIRMS SUED EACH YEAR FROM 40 IN THE MID1980S TO 26 LAST YEAR ACCORDING TO DATA COMPILED BY SCHINNERER ARCHITECTS AND ENGINEERS SAY THAT THE CERTIFICATE REQUIREMENT WORKS BECAUSE IT STOPS FRIVOLOUS SUITS FILED BY GREEDY LAWYERS OR BY PLAINTIFFS WHO DON'T UNDERSTAND THE ARCHITECT'S OR ENGINEER'S ROLE BUT PLAINTIFFS' LAWYERS COUNTER THAT THE SCREENING PROCEDURES UNCONSTITUTIONALLY LIMIT ACCESS TO JUSTICE ARCHITECTS AND ENGINEERS BORROWED THE CERTIFICATE IDEA FROM THE MEDICAL PROFESSION SINCE THE MID'80S AT LEAST 12 STATES HAVE DISCOURAGED SUITS AGAINST PHYSICIANS DENTISTS AND OTHERS BY REQUIRING A COLLEAGUE TO VOUCH FOR THE VALIDITY OF A MALPRACTICE LAWSUIT THE LAWS' EFFECTS ON MEDICALMALPRACTICE FILINGS ARE HARD TO GAUGE BUT THE RATE OF FILINGS HAS SLOWED SAID AMERICAN MEDICAL ASSOCIATION SPOKESWOMAN LYDIA STECK IN UPHOLDING CERTIFICATE REQUIREMENTS COURTS HAVE RULED THAT GETTING A DESIGN PROFESSIONAL OR DOCTOR TO APPROVE A LAWSUIT IS NO DIFFERENT FROM USING AN EXPERT WITNESS AT TRIAL THE EXPERT SIMPLY OFFERS AN OPINION A LITTSOONER THE COURTS SAID COURTS ALSO HAVE SAID THAT THE GOVERNMENT HAS AN INTEREST IN REDUCING FRIVOLOUS SUITS ESPECIALLY AT A TIME WHEN A MALPRACTICEINSURANCE CRISIS MAY BE LOOMING HOWEVER WYOMING'S SUPREME COURT SAID STATE LAWMAKERS WENT TOO FAR WHEN THEY GRANTED A PANEL OF PHYSICIANS BINDING POWER TO SCREEN LAWSUITS SUCH SCREENINGS CIRCUMVENT THE JUDICIAL PROCESS THE COURT SAID IN 1990 PLAINTIFFS' LAWYERS ARGUE THAT LITIGATION SCREENING UNFAIRLY MAKES VALID LAWSUITS TOUGHER TO FILE AND SOMETIMES IT'S HARD TO KNOW WHOM TO BLAME FOR A BUILDING'S DEFECT BEFORE THE LAWSUIT REACHES THE FACTFINDING STAGE SAYS PAUL E SCHLAM A PLAINTIFFS' LAWYER IN COLUMBUS GA THE CERTIFICATE REQUIREMENT STOPS ATTORNEYS FROM EVEN GETTING TO THAT POINT HE ARGUES SO MANY VALID SUITS GET THROWN OUT MR SCHLAM SAYS THAT IS WHAT HAPPENED IN A LAWSUIT HE FILED FOR A SUBCONTRACTOR EMPLOYEE WHO FELL THROUGH A ROOF AND COULDN'T WORK FOR A YEAR SIX MONTHS AFTER THE LAWSUIT WAS DISMISSED BECAUSE HE DIDN'T HAVE A CERTIFICATE MR SCHLAM FOUND TWO EXPERTS WHO SAID THE DESIGN FIRM PROBABLY WAS AT FAULT HE RUSHED TO REFILE THE SUIT BUT COURTS DISMISSED IT AGAIN BECAUSE TOO MUCH TIME HAD PASSED SINCE THE ORIGINAL FILING PLAINTIFFS' LAWYERS ALSO ARGUE THAT CERTIFICATES ARE AN UNNECESSARY PROTECTION AGAINST FRIVOLOUS LAWSUITS WHEN AN ATTORNEY SIGNS A COMPLAINT BEFORE FILING IT THAT PERSON IS CERTIFYING THAT THE COMPLAINT SEEMS LEGITIMATE SAID DAVID S SHRAGER A PHILADELPHIA ATTORNEY WHO IS A FORMER PRESIDENT OF THE AMERICAN TRIAL LAWYERS ASSOCIATION IN WASHINGTON AND ATTORNEYS WHO FILE FRIVOLOUS SUITS CAN ALREADY BE SANCTIONED UNDER OTHER LAWS MR SHRAGER SAID HE CALLED THE CERTIFICATE REQUIREMENT A SNEAKY WAY FOR DEFENSE LAWYERS TO FIGURE OUT SOONER THAN THEY ORDINARILY WOULD WHAT EXPERT WITNESSES AND THEORIES OF NEGLIGENCE THE OPPOSING SIDE PLANS TO USE OTHERWISE WHY SHOULDN'T WE ASK THE OPPOSING SIDE TO GET AN EXPERT'S OPINION TOO HE ASKS WE DON'T WANT A SHAM DEFENSE A FEDERAL JUDGE HAS JUDGED A BOOK BY ITS COVER AND ORDERED ITS DISTRIBUTION STOPPED THE ACTION BY JUDGE JOSEPH HOOD IN PIKEVILLE KY IS HIGHLY UNUSUAL LAWYERS ON BOTH SIDES SAID THEY DON'T KNOW OF ANOTHER CASE IN WHICH A JUDGE HAS BLOCKED THE DISTRIBUTION OF A BOOK SOLELY DUE TO ITS COVER THE BOOK A DARK AND BLOODY GROUND PUBLISHED BY HARPERCOLLINS PUBLISHERS AND WRITTEN BY DARCY O'BRIEN RECOUNTS DETAILS OF A GRISLY KENTUCKY MURDER EIGHT YEARS AGO IN WHICH THREE ATTACKERS STOLE 19 MILLION IN CASH AND STABBED 23YEAROLD TAMMY DEE ACKER TO DEATH TAWNY ACKER HOGG THE VICTIM'S SISTER FILED A LAWSUIT ALLEGING THAT A PHOTOGRAPH OF THE VICTIM WAS USED ON THE BOOK'S COVER WITHOUT THE FAMILY'S PERMISSION THE SUIT SAID THE USE OF THE PHOTO VIOLATED A KENTUCKY LAW PROHIBITING THE UNAUTHORIZED USE OF A PERSON'S NAME AND LIKENESS THE PHOTOGRAPH ONE OF THREE ON THE COVER WAS MADE TO APPEAR BLOODSTAINED IN A TEMPORARY RESTRAINING ORDER ISSUED MONDAY JUDGE HOOD BARRED NATIONWIDE DISTRIBUTION AS LONG AS THE COVER CONTAINED A PHOTOGRAPH OF MS ACKER WITH THE BLOOD STAIN SUPERIMPOSED THE ORDER APPLIES TO THE 3800 COPIES OF THE HARDCOVER BOOK NOT YET DISTRIBUTED BUT DOESN'T AFFECT THE 26800 COPIES ALREADY AT BOOKSTORES THE JUDGE SET A HEARING FOR APRIL 22 ON WHETHER TO EXTEND THE ORDER JOE F CHILDERS A FRANKFORT KY ATTORNEY REPRESENTING MS HOGG SAID THE JUDGE'S ORDER DIDN'T VIOLATE FREESPEECH RIGHTS BECAUSE THE PHOTOGRAPH WAS USED ON THE COVER PURELY TO SELL THE BOOK AND THEREFORE IS COMMERCIAL SPEECH WHICH COURTS HAVE SAID DOESN'T HAVE THE SAME CONSTITUTIONAL PROTECTION AS OTHER FORMS OF EXPRESSION DON COMBS A PARTNER WITH COMBS & COMBS IN PIKEVILLE WHICH REPRESENTS HARPERCOLLINS AND THE AUTHOR SAID THE CASE IS WITHOUT MERIT HE SAID THE LAW AGAINST UNAUTHORIZED COMMERCIALIZATION OF A PERSON'S LIKENESS WAS INTENDED TO PROTECT AGAINST THE USE OF IMAGES ON TSHIRTS AND OTHER ITEMS SOLD PURELY FOR PROFIT MR COMBS SAID THE PHOTOGRAPH ALREADY HAD APPEARED IN TWO NEWSPAPERS AND WAS INTRODUCED INTO EVIDENCE AT TRIAL THE PUBLISHER HAD A VALID NEWSWORTHY REASON FOR USING THE PHOTOGRAPH ON THE COVER MR COMBS SAID MR COMBS ALSO SAID THE RULING WAS AN ILLEGAL PRIOR RESTRAINT THAT VIOLATED FREESPEECH RIGHTS BECAUSE THE ORDER STOPPED DISTRIBUTION BEFORE HOLDING A HEARING ON THE MERITS OF THE CASE IF EVER THERE WAS DOUBT THAT MEN AND WOMEN SEE THINGS DIFFERENTLY CONSIDER THE RESULTS OF A NEW SURVEY ON THE COURTROOM EXPERIENCES OF MALE AND FEMALE ATTORNEYS ALMOST HALF OF THE FEMALE LAWYERS SURVEYED SAID WOMEN ARE LESS AGGRESSIVE THAN MEN IN FRONT OF A JURY ONLY 22 OF THE MALE LAWYERS OBSERVED SUCH A PATTERN AND 16 SAID FEMALE ATTORNEYS ARE MORE AGGRESSIVE SIMILARLY 22 OF THE WOMEN SURVEYED SAID MEN TEND TO BUDDY UP TO MALE JUDGES BUT ONLY 1 OF THE MEN NOTED SUCH BEHAVIOR BY MALE LAWYERS THE FINDINGS BY METRICUS INC PALO ALTO CALIF ARE BASED ON A MAIL SURVEY OF 730 RANDOMLY CHOSEN LITIGATORS HALF MALE AND HALF FEMALE FROM THE AMERICAN BAR ASSOCIATION'S LITIGATION SECTION THE RESULTS PARALLEL THOSE OF OTHER SURVEYS THAT HAVE FOUND DIFFERING POINTS OF VIEW AMONG MALE AND FEMALE ATTORNEYS ABOUT SEXUAL HARASSMENT THIS IS THE SAME SORT OF THING YOU CAN SEE THAT DIFFERENCE IN PERCEPTION SAID ROXANNE BARTON CONLIN A DES MOINES IOWA ATTORNEY AND PRESIDENT OF THE ASSOCIATION OF TRIAL LAWYERS AMERICA BASED IN WASHINGTON I THINK THERE ARE SOME MEN WHOSE WORLD VIEW IS SUCH THAT IF WE MAKE AN OBJECTION WE ARE PERCEIVED AS HARSH SHE SAID WHO'S NEWS DIANE E BURKLEY FORMERLY DEPUTY EXECUTIVE DIRECTOR AND CHIEF NEGOTIATOR AT THE PENSION BENEFIT GUARANTY CORP JOINED FRIED FRANK HARRIS SHRIVER & JACOBSON AS A PARTNER PRACTICING IN THE LAW FIRM'S WASHINGTON AND NEW YORK OFFICES SHE WILL FOCUS ON EMPLOYEE BENEFITS AND CORPORATE RESTRUCTURING NEW TRIAL NO DAMAGES IN 1989 THE CASE OF TWO HOMELESS BROTHERS INJURED ON A NEW YORK SUBWAY TRACK RESULTED IN A DAMAGE AWARD OF 13 MILLION BUT THAT AWARD WAS THROWN OUT ON APPEAL AND AT A RETRIAL EARLIER THIS WEEK JURORS FOUND NO NEGLIGENCE ON THE PART OF THE NEW YORK CITY TRANSIT AUTHORITY AN APPEAL IS UNLIKELY SAID AN ATTORNEY FOR THE ESTATES OF THE BROTHERS ONE OF THE BROTHERS DIED IN 1986 AND THE OTHER DIED SHORTLY AFTER THE FIRST TRIAL DC OFFICE ADDED GREENBERG TRAURIG ONE OF FLORIDA'S LARGEST LAW FIRMS OPENED A WASHINGTON OFFICE THE 172LAWYER MIAMI FIRM WILL HAVE TWO PARTNERS IN WASHINGTON ARTHUR S HAYES CONTRIBUTED TO THIS ARTICLE SEE RELATED LETTER LETTERS TO THE EDITOR WE'VE SCANT SYMPATHY FOR PLAINTIFF'S LAWYERS WSJ MAY 4 1993 9304140073 YY93 MM05 9305040027 930402 EDUCATION NEW GRADESCHOOL SEXUALITY CLASSES GO BEYOND BIRDS AND BEES TO EXPLICIT BASICS BY SUZANNE ALEXANDER STAFF REPORTER OF THE WALL STREET JOURNAL WHEN STUDENTS IN DEBORAH ELLIS'S KINDERGARTEN CLASS ASK WHERE BABIES COME FROM THE IRVINGTON NJ TEACHER READS ALOUD TO THEM FROM A NEW CURRICULUM ADOPTED DISTRICTWIDE THIS YEAR WHEN A WOMAN AND A MAN WHO LOVE EACH OTHER GO TO BED THEY LIKE TO HUG AND KISS WHILE NEW YORK ELEMENTARY SCHOOLS WERE RECENTLY IN AN UPROAR OVER THE WISDOM OF A CURRICULUM THAT TALKS ABOUT HOMOSEXUALITY SCHOOLS IN OTHER PLACES ARE USING FAR MORE GRAPHIC MATERIAL TO TEACH THE BIRDS AND THE BEES TO CHILDREN AT A MUCH EARLIER AGE THAN IN THE PAST CONCERNED ABOUT TEENAGE PREGNANCY THE SPREAD OF AIDS AND THE THREAT OF CHILD ABUSE MANY EDUCATORS SAY THEY CAN'T WAIT UNTIL THE FIFTH OR SIXTH GRADE TO TEACH SEX EDUCATION A LOT OF THESE YOUNGER KIDS KNOW IT ANYWAY SAYS MS ELLIS A TEACHER AT MADISON AVENUE ELEMENTARY SCHOOL IN IRVINGTON NEAR NEWARK KIDS WATCH THE ADULT CHANNELS AND HBO WE WANT THEM TO FEEL COMFORTABLE TALKING ABOUT IT IRVINGTON PARTLY MOTIVATED BY HIGH TEENAGEPREGNANCY RATES ADOPTED ITS NEW EXPLICIT SEXEDUCATION MATERIALS FOR ELEMENTARYSCHOOL CHILDREN LAST FALL MANY STATES INCLUDING VIRGINIA AND NEW JERSEY ARE NOW REQUIRING THAT SCHOOLS TEACH COMPREHENSIVE FAMILY LIFE CURRICULA BEGINNING IN KINDERGARTEN LAST OCTOBER RUTGERS UNIVERSITY PRESS PUBLISHED LEARNING ABOUT FAMILY LIFE POSSIBLY THE FIRST SEXEDUCATION CURRICULUM DESIGNED SPECIFICALLY FOR FIVETOEIGHTYEAROLDS SO FAR RUTGERS SAYS ABOUT 70 SCHOOL DISTRICTS NATIONWIDE INCLUDING IRVINGTON HAVE BOUGHT THE CURRICULAR MATERIALS INCLUDING 43 LESSON PLANS WITH TITLES SUCH AS UNCLE SETH HAS HIV LEARNING ABOUT OUR GENITAL PARTS AND TALKING ABOUT TOUCHES WHICH URGES THAT MASTURBATION BE DONE IN PRIVATE SOME CHILD PSYCHOLOGISTS CAUTION THAT LESSONS ON SEXUALITY COULD FRIGHTEN YOUNG CHILDREN WHO DON'T UNDERSTAND THE INFORMATION I THINK IT CAN MAKE THEM MORE ANXIOUS THAN THEY NEED TO BE SAYS ROBERT PIANTA A PSYCHOLOGY PROFESSOR AT THE UNIVERSITY OF VIRGINIA CRITICS COMPLAIN THAT IT IS NOT THE SCHOOLS' JOB TO TEACH ABOUT THE PLEASURE OF SEX AT ANY AGE THERE'S GOT TO BE SOME CONSTRAINT THE FACT THAT IT'S PLEASURABLE AND NATURAL DOESN'T MEAN IT HAS TO BE DISCUSSED SAYS PATRICK MCCARTHY OF THE JEFFERSON CENTER FOR CHARACTER EDUCATION A NONPROFIT GROUP IN PASADENA CALIF THAT PROMOTES THE TEACHING OF ETHICS IN SCHOOLS MANY PARENTS AND CLERGY AGREE THAT IN THIS SOCIETY KIDS NEED TO KNOW THE FACTS EARLY THOSE INVOLVED IN DEVISING IRVINGTON'S SEXUALITY CURRICULUM WHICH ALSO INCLUDES OTHER SEXEDUCATION MATERIALS USED SINCE 1985 SAY THAT SOME PARENTS THERE HAVE GIVEN UP RELYING STRICTLY ON USING THEIR OWN MORAL STANDARDS TO INFLUENCE THEIR CHILDREN IT'S VERY POPULAR NOW FOR TEENAGE BOYS TO STAY OVERNIGHT AT GIRLS' HOUSES THERE ARE NO SANCTIONS COMPLAINS KATHLEEN WITCHER PRESIDENT OF THE ESSEX COUNTY PARENTTEACHER COUNCIL WHICH INCLUDES IRVINGTON SEX EDUCATION IS TYPICALLY RESERVED FOR STUDENTS ON THE BRINK OF PUBERTY IN FIFTH OR SIXTH GRADE TRADITIONALLY GIRLS GO TO ONE ROOM AND BOYS TO ANOTHER TO LEARN ABOUT THE MENSTRUAL CYCLE NOCTURNAL EMISSIONS AND OTHER FACTS OF LIFE BUT IN ALEXANDRIA VA IN A CURRICULUM THAT IS TYPICAL OF THE NEW APPROACH KINDERGARTNERS LEARN BASIC ANATOMY TERMS SUCH AS PENIS AND VULVA AND SEXUALSAFETY LESSONS ON GOOD AND BAD TOUCHING IF STUDENTS ARE FAMILIAR WITH SEXUALITY CONCEPTS AND ARE COMFORTABLE AT AN EARLY AGE THEY'RE MORE LIKELY TO ASK QUESTIONS LATER BEFORE THEY SUCCUMB TO PEER PRESSURE THAT THEY'RE NOT READY FOR SAYS DIANNE L COLE COORDINATOR FOR THE NEW JERSEY DEPARTMENT OF EDUCATION'S HIV/HEALTH EDUCATION PROGRAM SEX EDUCATION ISN'T THE ONLY EMPHASIS OF THE FAMILYLIFE LESSONS FOR THE LOWER GRADES STATES ARE ALSO REQUIRING TEACHING ABOUT DIFFERENT TYPES OF FAMILIES AND CULTURAL TRADITIONS FOR EXAMPLE SEXUALITY AND HIV/AIDS EDUCATION ARE REQUIRED IN MANY STATES WITH LOCAL DISTRICTS USUALLY ALLOWED TO DETERMINE THE GRADE LEVEL AT WHICH THE LESSONS ARE GIVEN EARLY SEX EDUCATION GAINED A BOOST IN 1991 WITH THE PUBLICATION OF GUIDELINES FOR COMPREHENSIVE SEXUALITY EDUCATION A KINDERGARTENTO12THGRADE GUIDE DEVELOPED BY A GROUP OF HEALTH AND EDUCATION PROFESSIONALS ORGANIZED BY THE SEX INFORMATION AND EDUCATION COUNCIL OF THE US THE COUNCIL IS A NONPROFIT NEW YORK RESEARCH GROUP THAT ADVOCATES WIDER SEX EDUCATION ITS GUIDELINES INTENDED TO HELP SCHOOLS CREATE CURRICULA OUTLINE TOPICS FOR DISCUSSION IN EVERY GRADE SUCH AS SEXUAL ORIENTATION AND REPRODUCTION HUMAN SEXUAL RESPONSE AND FANTASY MASTURBATION AND SEXUAL ABUSE RUTGERS UNIVERSITY PRESS BORROWED SOMEWHAT FROM THE GUIDELINES IN WRITING ITS FAMILY LIFE CURRICULUM THE PREMISE OF THAT CURRICULUM ACCORDING TO ITS INTRODUCTION IS THAT SEXUALITY IS A PART OF DAILY LIVING AS ESSENTIAL TO NORMAL FUNCTIONING AS MATHEMATICS AND READING THIS CURRICULUM SUPPORTS THE CONCEPT THAT SEX IS PLEASURABLE AND THAT CURIOSITY ABOUT ONE'S BODY IS NATURAL AND HEALTHY THE MADISON NJ SCHOOL DISTRICT REJECTED THE RUTGERS BOOK IF CHILDREN AT THAT AGE ASK WHERE BABIES COME FROM YOU SHOULD TELL THEM MOMMY'S TUMMY SAYS SUSAN LEGLISE ASSISTANT SUPERINTENDENT OF SCHOOLS WE DON'T HANDLE AIDS IN KINDERGARTEN AND FIRST GRADE WE FEEL HEALTH AND SEXUALITY ISSUES ARE REALLY BETTER HANDLED IN FOURTH AND FIFTH GRADE LESLIE HOLLIDAY A PARENT IN NEWTON MASS IS FIGHTING A PROPOSAL BY THE SCHOOL BOARD TO EXPAND AND UPDATE ITS SEXUALITY AND HIV/AIDS CURRICULUM FOR ALL GRADES USING SOME OF THE SEXINFORMATION COUNCIL'S GUIDELINES IT'S NOT A MATTER OF IMMEDIATE CONCERN FOR A CHILD TO UNDERSTAND HOW TO BE PHYSICALLY INTIMATE WITH ANOTHER HUMAN BEING SHE SAYS SOME EDUCATORS HOWEVER SUCH AS MS ELLIS OF MADISON AVENUE ELEMENTARY SCHOOL IN IRVINGTON RAVE ABOUT THE RUTGERS BOOK BECAUSE IT ADDRESSES QUESTIONS THAT KIDS HAVE MS WITCHER OF THE IRVINGTON PARENTTEACHER COUNCIL SAYS FEW PARENTS HAVE TAKEN ADVANTAGE OF THEIR RIGHT TO TAKE THEIR CHILDREN OUT OF SEXEDUCATION COURSES IN THE LOWER GRADES SINCE THEY BEGAN IN 1985 SEE RELATED LETTER LETTERS TO THE EDITOR IF FREE LOVE'S OK WHAT ABOUT BABY WSJ MAY 4 1993 9304020122 YY93 MM05 9305030178 930503 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT ASTRO TANKERS LTD INITIAL FIVE MILLION COMMON SHARES VIA LEHMAN BROTHERS AMTRAN INC INITIAL 3150000 COMMON SHARES VIA SALOMON BROTHERS BAESA INITIAL OFFERING OF AMERICAN DEPOSITARY RECEIPTS VIA OPPENHEIMER CROSS TIMBERS OIL CO INITIAL FIVE MILLION COMMON SHARES VIA GOLDMAN SACHS & CO EW BLANCH HOLDINGS INC INITIAL 4340000 COMMON SHARES VIA SALOMON BROTHERS GREYHOUND LINES INC 41 MILLION COMMON SHARES VIA SMITH BARNEY HARRIS UPHAM & CO INC ILLINOIS CENTRAL RAILROAD CO 100 MILLION OF NOTES VIA LEHMAN BROTHERS INFINITY BROADCASTING CORP 32 MILLION COMMON SHARES VIA LEHMAN BROTHERS LAMAR ADVERTISING CO 100 MILLION OF SENIOR SECURED NOTES VIA GOLDMAN SACHS MITCHELL ENERGY & DEVELOPMENT CORP 55 MILLION CLASS B NONVOTING SHARES VIA GOLDMAN SACHS PHILADELPHIA ELECTRIC CO 450 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS VIA COMPETITIVE BID REINSURANCE GROUP OF AMERICA INITIAL 58 MILLION COMMON SHARES VIA SALOMON BROTHERS TELOR OPTHALMIC PHARMACEUTICALS INC INITIAL 25 MILLION COMMON SHARES VIA ALEX BROWN & SONS TRANSPORTACION MARITIMA MEXICANA SA DE CV 150 MILLION OF NOTES VIA BEAR STEARNS & CO VORNADO REALTY TRUST FIVE MILLION COMMON SHARES VIA MERRILL LYNCH & CO WORLD COLOR PRESS INC 150 MILLION OF SENIOR NOTES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP ZURICH REINSURANCE CENTRE HOLDINGS INC INITIAL 9450000 COMMON SHARES VIA FIRST BOSTON CHICAGO SCHOOL FINANCE AUTHORITY 211 MILLION OF REFUNDING BONDS VIA COMPETITIVE BID ARIZONA DEPARTMENT OF TRANSPORTATION 180 MILLION OF SERIES 1993 HIGHWAY REVENUE REFUNDING BONDS VIA A SMITH BARNEY GROUP BEVERLY HILLS PUBLIC FINANCE AUTHORITY CALIF 93 MILLION OF LEASE REVENUE BONDS VIA A GOLDMAN SACHS GROUP CHICAGO REGIONAL TRANSPORTATION AUTHORITY 110 MILLION OF BONDS VIA A MERRILL LYNCH GROUP CONNECTICUT HOUSING FINANCE AUTHORITY 109 MILLION OF HOUSING MORTGAGE FINANCE REVENUE BONDS VIA A PAINEWEBBER INC GROUP DUARTE CALIF 150 MILLION OF CERTIFICATES OF PARTICIPATION VIA A PAINEWEBBER GROUP DUPAGE WATER COMMISSION ILL 176 MILLION OF WATER REVENUE REFUNDING BONDS VIA A MERRILL LYNCH GROUP KANSAS DEPARTMENT OF TRANSPORTATION 250 MILLION OF HIGHWAY REVENUE BONDS VIA A LEHMAN BROTHERS GROUP LOWER COLORADO RIVER AUTHORITY TEXAS 275 MILLION OF JUNIORLIEN REFUNDING REVENUE BONDS FIFTH SUPPLEMENTAL SERIES VIA A MORGAN STANLEY & CO INC GROUP NORTHERN CALIFORNIA POWER AGENCY 254 MILLION OF REVENUE REFUNDING BONDS VIA A SMITH BARNEY GROUP PALM BEACH COUNTY FLA 100 MILLION OF HOSPITAL REVENUE BONDS VIA A LEHMAN BROTHERS GROUP VIRGINIA PUBLIC SCHOOL AUTHORITY 2866 MILLION OF 1993 REFUNDING SERIES B SCHOOL FINANCING BONDS VIA A MORGAN STANLEY GROUP NEW YORK STATE DORMITORY AUTHORITY AS MUCH AS 12 BILLION OF STATE UNIVERSITY EDUCATIONAL FACILITIES REFUNDING BONDS VIA A MERRILL LYNCH GROUP 9305030177 930503 UNITED WASTE SYSTEMS SAYS IT EXPECTS TO POST FIRSTQUARTER PROFIT GREENWICH CONN BUOYED BY A STRING OF ACQUISITIONS AND IMPROVING SYNERGIES AT ITS NEW UNITS UNITED WASTE SYSTEMS INC SAID FIRSTQUARTER EARNINGS SHOULD BE WITHIN ANALYSTS' EXPECTATIONS EDWARD T SHEEHAN PRESIDENT SAID IN AN INTERVIEW THAT THE SOLIDWASTE CONCERN IS COMFORTABLE WITH ANALYSTS' PROJECTIONS OF ABOUT 13 MILLION TO 16 MILLION OR 11 CENTS TO 14 CENTS A SHARE ON 101 MILLION SHARES OUTSTANDING ANALYSTS PROJECT REVENUE OF ABOUT 14 MILLION WITH WHICH THE COMPANY ALSO IS COMFORTABLE IN THE FIRST QUARTER OF 1992 UNITED WASTE HAD A NET LOSS OF 700000 OR 27 CENTS A SHARE ON 34 MILLION SHARES OUTSTANDING REVENUE WAS 42 MILLION UNITED WASTE OWNS LANDFILLS AND HAULING OPERATIONS AND CONTINUES TO FIND SUCCESS BY DODGING INDUSTRY GIANTS SUCH AS WASTE MANAGEMENT INC BROWNINGFERRIS INDUSTRIES AND LAIDLAW INC AND AIMING FOR SMALLER REGIONAL MARKETS MR SHEEHAN SAID THAT IF CURRENT ACQUISITION PLANS HOLD UNITED WASTE WOULD CONTROL COMPANIES THAT HAD COMBINED 1992 REVENUE OF MORE THAN 85 MILLION COMPARED WITH ITS OWN REVENUE LAST YEAR OF 26 MILLION WE WANT TO BE OFF THE BEATEN TRACK AND HAVE A SIGNIFICANT MARKET SHARE SAID MR SHEEHAN WE LIKE TO BUY SMALLER COMPANIES STRIP OUT CERTAIN COSTS SUCH AS OVERHEAD AND DRASTICALLY IMPROVE PERFORMANCE SINCE AN INITIAL PUBLIC OFFERING IN DECEMBER UNITED WASTE HAS BEEN EXPANDING RAPIDLY ACQUIRING NINE COMPANIES IN THE PAST FEW MONTHS ADDITIONALLY THE COMPANY WHICH HAS ABOUT 85 OF ITS BUSINESS IN MICHIGAN PENNSYLVANIA AND MASSACHUSETTS HAS SIGNED LETTERS OF INTENT TO BUT EIGHT MORE SOLIDWASTE FIRMS UNITED WASTE SAID IT EXPECTS TO CLOSE ON THOSE ACQUISITIONS SOMETIME IN THE NEXT MONTH OUR ACQUISITION PLAN IS RIGHT ON TRACK PERHAPS EVEN A LITTLE AHEAD OF SCHEDULE MR SHEEHAN SAID THESE HAVE BEEN THE BEST DEALS WE COULD FIND AND WE STUDIED MORE THAN 1500 POSSIBLE ACQUISITIONS UNITED WASTE'S STRATEGY IS TO PURCHASE A LANDFILL AND THEN BUY HAULING BUSINESSES THAT DELIVER TO THE SITE BY ACQUIRING SEVERAL BUSINESSES IN CLOSE PROXIMITY THE COMPANY CAN STREAMLINE ADMINISTRATION AND COORDINATE DELIVERY SYSTEMS TO INCREASE PRODUCTIVITY AND CUT COSTS 9305030176 930503 LETTERS TO THE EDITOR NASD HASN'T RELAXED 5 POLICY ON MARKUPS AN APRIL 1 ARTICLE PARTNERSHIP RESALE FIRMS' PRICING DRAWS NASD IRE MAY HAVE LEFT AN ERRONEOUS IMPRESSION THAT THE NATIONAL ASSOCIATION OF SECURITIES DEALERS HAS AMENDED ITS REQUIREMENTS WITH RESPECT TO THE APPROPRIATE LEVEL OF MARKUPS AND MARKDOWNS FOR DIRECT PARTICIPATION PROGRAM DPP UNITS SUCH AS LIMITED PARTNERSHIP INTEREST THE GOVERNING NASD RULES AND POLICIES HAVE NOT BEEN RELAXED THE NASD BOARD OF GOVERNORS' 5 POLICY IS A GUIDELINE THAT MARKUPS AND MARKDOWNS SHOULD GENERALLY NOT EXCEED 5 OF THE PREVAILING MARKET PRICE FOR EQUITY SECURITIES GENERALLY IT WOULD BE A VIOLATION TO EXCEED THIS 5 STANDARD UNLESS THE MEMBER CAN SHOW THE MARKUP/MARKDOWN CHARGED TO BE FAIR UNDER THE UNIQUE CIRCUMSTANCES OF EACH TRADE IN THE DECISION DISCUSSED IN YOUR ARTICLE THE NASD BOARD SPECIFICALLY HELD THAT THE 5 POLICY APPLIES TO THE SALE OF DPP UNITS IN THE SECONDARY MARKET RECOGNIZING THE FLEXIBILITY OF THE GUIDELINE THE UNIQUE CHARACTERISTICS OF THE DPP SECONDARY MARKET AND MOST IMPORTANTLY THE FACTS PARTICULAR TO THE CASE BEFORE IT THE BOARD FOUND 8 MARKUPS NOT TO BE EXCESSIVE THE BOARD MADE IT CLEAR THAT ITS DECISION WAS NOT TO SERVE AS A NOTICE TO OTHER MEMBER FIRMS TO CHARGE 8 EQUALLY IMPORTANT THE 8 DEEMED TO BE FAIR UNDER THE PARTICULAR CIRCUMSTANCES OF THIS CASE REPRESENTS THE DIFFERENCE BETWEEN THE PRICE PAID TO THE SELLING CUSTOMER AND THE PRICE ACTUALLY RECEIVED FROM THE BUYING CUSTOMER IN SHORT THE RECENT DECISION HAS NOT RELAXED THE APPLICATION OF THE NASD'S 5 POLICY TO THE SECONDARY MARKET FOR DPP UNITS MEMBER BROKERDEALERS BEAR AN IMPORTANT OBLIGATION OF FAIR DEALING WITH THEIR CUSTOMERS WITHIN THE PARAMETERS OF THE NASD'S 5 GUIDELINES INCLUDING A DUTY TO BUY AND SELL SECURITIES WITH CUSTOMERS AT THE CURRENT MARKET PRICE 9305030175 930503 ECONOMY CENTRAL BANKS PROPOSE REQUIRING BANKS IN SECURITIES DEALS TO HAVE MORE CAPITAL BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW RULES PROPOSED BY THE CENTRAL BANKS OF 10 MAJOR NATIONS WOULD REQUIRE MORE CAPITAL FOR BANKS ACTIVE IN THE FINANCIAL MARKETS A MOVE THAT COULD PUT THEM AT A COMPETITIVE DISADVANTAGE TO SECURITIES FIRMS THE PROPOSALS RELEASED FOR COMMENT ARE THE FIRST MAJOR PRONOUNCEMENT FROM THE BASEL COMMITTEE OF THE BANK FOR INTERNATIONAL SETTLEMENTS SINCE IT MANDATED MINIMUM CAPITAL REQUIREMENTS TO REFLECT LENDING RISKS IN 1988 NOW THE COMMITTEE WANTS TO TAKE SAFEGUARDS AGAINST MARKET RISK THE NEW PROPOSALS WHICH COULD BE IMPLEMENTED BY 1995 GO BEYOND RECENT MOVES BY US BANKING REGULATORS TO REFLECT IN A BANK'S CAPITAL THE EFFECT OF POTENTIAL INTERESTRATE SWINGS ON THE VALUE OF ASSETS AND LIABILITIES IN ADDITION TO INTERESTRATE RISK THE COMMITTEE WANTS TO INCLUDE SPECIFIC CAPITAL ADJUSTMENTS FOR ALL MARKETS INCLUDING EQUITIES CURRENCIES AND SOPHISTICATED FINANCIAL INSTRUMENTS KNOWN AS DERIVATIVES IT WOULD DO THIS BY REQUIRING BANKS TO USE SIMULATION MODELS OF MARKET VOLATILITY TO GAUGE SPECIFIC AMOUNTS OF CAPITAL THAT SHOULD BE HELD IN RESERVE FOR POTENTIAL MARKET SWINGS THE PROPOSALS COULD RESULT IN LOWER CAPITAL RATIOS FOR SOME BANKS DEPENDING ON THEIR MIX OF BUSINESS BUT BASEL COMMITTEE CHAIRMAN E GERALD CORRIGAN PRESIDENT OF THE FEDERAL RESERVE BANK OF NEW YORK SAID AT A NEWS CONFERENCE IN BASEL SWITZERLAND THAT HE EXPECTS ON AVERAGE A MODEST OVERALL INCREASE IN CAPITAL REQUIREMENTS BEYOND THE 8 MINIMUM CAPITALTOASSET RATIOS MANDATED BY AN EARLIER ACCORD ONE PROBLEM FOR THE BANKING INDUSTRY IS THAT THE SECURITIES DEALERS HAVEN'T ISSUED SIMILAR PROPOSALS THAT COULD PUT BANKS AT A COMPETITIVE DISADVANTAGE IF THEY HAVE TO SET ASIDE GREATER AMOUNTS OF CAPITAL FOR CERTAIN TRANSACTIONS THE COMMITTEE NOTED THAT IT WAS HOPING TO ISSUE THE DRAFT IN CONJUNCTION WITH THE INTERNATIONAL ORGANIZATION OF SECURITIES COMMISSIONS TO DEVELOP COMMON CAPITAL STANDARDS BUT THE TWO INTERNATIONAL WATCHDOG BODIES WERE UNABLE TO REACH AN AGREEMENT BECAUSE OF DISAGREEMENTS AMONG SECURITIES REGULATORS IT REALLY HAD TO APPLY UNIFORMALY OR BANKS WOULD BE AT A COMPETITIVE DISADVANTAGE SAID EDWARD FURASH A WASHINGTON BANKING CONSULTANT THE SECURITIES INDUSTRY THE COMMITTEE SAID IN A STATEMENT THESE EFFORTS TAKE ON A GREATER SENSE OF URGENCY OWING TO THE RAPID GROWTH IN THE TRADING ACTIVITIES OF MANY BANKS THE BASEL COMMITTEE HOPES TO HAVE THE SECURITIES INDUSTRY ON BOARD BEFORE IMPLEMENTING THE NEW CAPITAL STANDARDS WHAT YOU HAVE HERE IS AN EFFORT TO RECOGNIZE THE RISKS A LITTLE BETTER SAYS HENRY HU PROFESSOR OF LAW AT THE UNIVERSITY OF TEXAS REGULATORS ARE ALWAYS PLAYING A GAME OF CATCHUP ONE REASON WHY SOME BANKS MAY NOT HAVE TO INCREASE THEIR CAPITAL IS ANOTHER PROPOSED RULE CHANGE FOR INTEREST RATE AND CURRENCY SWAPS WHICH ARE FASTGROWING DERIVATIVE INSTRUMENTS BY ALLOWING TWO INSTITUTIONS TO OFFSET OBLIGATIONS OWED EACH OTHER FROM DIFFERENT CONTRACTS THE BIS WILL REDUCE THE CAPITAL REQUIREMENTS FOR MANY TYPES OF SWAP CONTRACTS EFFECTIVELY FREEING UP CAPITAL AND MAKING THOSE INSTRUMENTS MORE PROFITABLE CURRENTLY MANY BANKS OFFSET OBLIGATIONS AGAINST EACH OTHER FOR ACCOUNTING PURPOSES BUT HAVE TO POST CAPITAL AGAINST EACH SEPARATE CONTRACT UNDER THE NEW PROPOSALS THE OBLIGATIONS WOULD NET OUT FOR CAPITAL PURPOSES WE ARE QUITE ENTHUSIASTIC THAT BASEL HAS OPENED THE DOOR TO REALIZE THE CAPITAL BENEFITS OF NETTING SAID JOSEPH P BAUMAN HEAD OF BUSINESS DEVELOPMENT AT CITIBANK AND CHAIRMAN OF THE INTERNATIONAL SWAPS DEALERS ASSOCIATION GIVEN THAT MR CORRIGAN HAD INITIALLY WARNED THE BANKING COMMUNITY ABOUT RISKS IN DERIVATIVES AND ABOUT NETTING PRACTITIONERS BELIEVE THAT HE HAS WARMED TO THE INDUSTRY'S PRACTICES EITHER HE HAS BEEN CONVINCED THAT HIS WARNINGS HAVE BEEN HEEDED OR HE'S REALIZED THE WARNING WAS TOO STRONG AND NOT REALISTIC SAID MR BAUMAN 9305030174 930503 INTERNATIONAL ASSASSINATION OF SRI LANKAN PRESIDENT EXPECTED TO TOUCH OFF POLITICAL CRISIS BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL THE ASSASSINATION OF SRI LANKAN PRESIDENT RANASINGHE PREMADASA BY A SUICIDE BOMBER AT A MAY DAY PARADE SATURDAY COMING A WEEK AFTER HIS CHIEF RIVAL WAS ASSASSINATED IS EXPECTED TO PLUNGE THE NATION INTO A POLITICAL CRISIS IT ALSO DEPRIVES ONE OF SOUTH ASIA'S MOST SUCCESSFUL ECONOMIES OF STRONG LEADERSHIP JUST AS IT WAS EMERGING FROM A DECADE OF TERRIBLE VIOLENCE THIS IS GOING TO BE MORE THAN A HICCUP SAYS VISHWANATH PAI PANANDIKAR DIRECTOR OF NEW DELHI'S CENTER FOR POLICY RESEARCH MR PREMADASA WAS TOO CRITICAL A PERSON TO LOSE WITHOUT THERE BEING AN EFFECT THE 68YEAROLD MR PREMADASA WHO WAS ELECTED IN 1988 MADE A POINT OF ACCUMULATING POWER BOTH WITHIN THE RULING UNITED NATIONAL PARTY AND THE GOVERNMENT OFTEN HIS POTENTIAL RIVALS WERE SACKED HIS KEY RIVAL LALITH ATHULATHMUDALI WAS MR PREMADASA'S SECURITY MINISTER BEFORE HE SET HIMSELF UP AS A POPULIST OPPOSITION LEADER HE WAS ASSASSINATED BY A GUNMAN LAST WEEK WITH THE TWO MOST POWERFUL FIGURES GONE THERE IS A LOT OF UNCERTAINTY SAID A SENIOR ASIAN DIPLOMAT WHO SPENT FIVE YEARS IN COLOMBO SRI LANKA'S SEAPORT CAPITAL THERE ARE MANY OTHER LEADERS BUT FEW WHO HAVE ACCOMPLISHED NATIONAL STATURE TO LEAD THE COUNTRY MR PREMADASA'S LEGAL SUCCESSOR PRIME MINISTER DINGIRI BANDA WIJETUNGE HAS BEEN A LOWPROFILE POLITICIAN WHO IS KNOWN CHIEFLY FOR HIS LOYALTY TO MR PREMADASA SRI LANKA'S PARLIAMENT NOW HAS ONE MONTH TO ELECT A NEW PRESIDENT TO A SIXYEAR TERM THOUGH ANALYSTS SAY UNLESS THE NEW PRESIDENT IS A STRONG POLITICAL FIGURE HE MAY HAVE DIFFICULTY GUIDING A SINHALESE COUNTRY OF 17 MILLION THAT FACES A MILITARY INSURGENCY BY SOME MEMBERS OF ITS BIGGEST MINORITY THE TAMILS WHILE POLICE SAY THE TAMILS ARE THE CHIEF SUSPECT THE REBELS HAVE DENIED ANY PART OF THE PRESIDENT'S ASSASSINATION INDEED SOME OBSERVERS SAY IT COULD HAVE BEEN A RETALIATORY ATTACK FOR LAST MONTH'S KILLING OF THE OPPOSITION LEADER MR ATHULATHMUDALI NO ONE HAS CLAIMED RESPONSIBILITY FOR THAT MURDER AND THE GOVERNMENT HAS DENIED ACCUSATIONS THAT IT WAS CARRIED OUT ON MR PREMADASA'S ORDERS ASIDE FROM THE PRESIDENT ABOUT TWO DOZEN PEOPLE WERE KILLED AND SCORES INJURED IN SATURDAY'S BOMB ATTACK REPORTEDLY CARRIED OUT BY A TEENAGER ON A BICYCLE IN COLOMBO POLICE SAID THEY FOUND A BROKEN CYANIDE CAPSULE EMBEDDED IN HIS NECK TAMIL REBELS WEAR SUCH CAPSULES TO SWALLOW IF THEY ARE CAPTURED THE TAMIL REBELS KNOWN AS THE LIBERATION TIGERS OF TAMIL EELAM HAVE USED SUICIDE BOMBERS IN THE PAST TO ASSASSINATE OFFICIALS FORMER INDIAN PRIME MINISTER RAJIV GANDHI WAS KILLED BY A BOMBER IN INDIA TWO YEARS AGO IN WHAT SOME BELIEVE WAS A TAMILLINKED ASSASSINATION FOR THE PAST DECADE THE TAMIL TIGERS AND THE GOVERNMENT HAVE FOUGHT A BRUTAL WAR OVER THE TIGERS' DEMANDS FOR INDEPENDENCE FOR THE NORTHERN PART OF THE ISLAND THEY INHABIT AT LEAST 17000 PEOPLE HAVE DIED IN THE CONFLICT TO OUTWARD APPEARANCES SRI LANKA FORMERLY THE BRITISH COLONY OF CEYLON SHOULD BE A TROPICALISLAND PARADISE WITH ITS LONG WHITE BEACHES AND FERTILE SOIL FOR GROWING TEA FRUIT AND OTHER CASH CROPS LAST YEAR SRI LANKA'S ECONOMY DRIVEN BY LIGHT INDUSTRY AND TOURISM GREW 43 OFF SLIGHTLY FROM 45 IN 1991 BECAUSE OF A DRAUGHT IN SOME AGRICULTURAL REGIONS THE GROWTH CAME DESPITE TIGHT GOVERNMENT SPENDING POLICIES WHICH BROUGHT ITS DEFICIT DOWN SHARPLY LAST YEAR TO 75 OF ECONOMIC OUTPUT FROM 12 A YEAR EARLIER MR PREMADASA WAS A KEY SUPPORTER OF THE ECONOMIC MEASURES THAT BROUGHT GROWTH AND WON THE APPROVAL OF THE INTERNATIONAL MONETARY FUND HE SUPPORTED CAPITALMARKET REFORMS INCLUDING ESTABLISHMENT OF A NEW STOCK EXCHANGE AND STRONGLY BACKED A PRIVATIZATION CAMPAIGN THAT SOLD OFF ABOUT ONETHIRD OF STATE INDUSTRY TO PRIVATE INVESTORS LAST YEAR YET AS IN SO MANY REGIONS OF THE WORLD TODAY ECONOMIC SELFINTEREST REMAINED IN THE DEADLY CLUTCH OF ETHNIC POLITICS THAT MANY ALREADY BLAME FOR MR PREMADASA'S ASSASSINATION THE VIOLENCE OF THE PAST DECADE HAD SEVERELY UNDERMINED TOURISM THE BIGGEST EMPLOYER AND A LARGE FOREIGNEXCHANGE EARNER ONLY LAST YEAR DID TOURIST ARRIVALS BEGIN TO APPROACH 1983 LEVELS 9305030173 930503 WORLD MARKETS TOKYO STOCKS RALLY 13 TO A 14MONTH HIGH LONDON SHARES CLIMB BOTH AHEAD OF HOLIDAYS A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS SURGED 13 FRIDAY TO THE HIGHEST LEVEL IN ALMOST 14 MONTHS IN UNEXPECTEDLY ACTIVE DEALINGS BETWEEN JAPANESE HOLIDAYS LONDON SHARES ROSE SHARPLY AHEAD OF A THREEDAY HOLIDAY WEEKEND IN BRITAIN WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10557 UP 078 REFLECTING INCREASES IN ALL MARKETS FISHING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 9422 UP 315 OR 346 WITH TAIYO FISHERY OF JAPAN POSTING A 507 GAIN IN ITS LOCAL CURRENCY COAL STOCKS TRAILED AT 9200 DOWN 079 OR 085 WITH ADDINGTON RE OF THE US SLIDING 392 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX RALLIED 46461 POINTS TO 2091918 THE INTRADAY HIGH AND THE HIGHEST FINISH SINCE MARCH 6 1992 THE INDEX LAST WEDNESDAY CLIMBED 24786 POINTS THE MARKET WAS CLOSED THURSDAY AND IS SHUT AGAIN MONDAY AND TUESDAY FOR NATIONAL HOLIDAYS FIRST SECTION VOLUME WAS ESTIMATED AT 650 MILLION SHARES DOWN FROM 7882 MILLION SHARES WEDNESDAY ADVANCING ISSUES BY FAR OUTNUMBERED DECLINING ISSUES 967132 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH ROSE 2008 POINTS WEDNESDAY CLIMBED 2803 OR 18 TO 162079 THE STATEMENT THURSDAY BY OFFICIALS OF THE GROUP SEVEN MAJOR INDUSTRIAL NATIONS AFTER A MEETING IN WASHINGTON THAT SHARP CURRENCY SWINGS ARE UNDESIRABLE CALMED TOKYO MARKET FEARS ABOUT A FURTHER RAPID APPRECIATION OF THE YEN THE G7 OUTCOME CONVINCED TOKYO INVESTORS THAT THE YEN WOULD STABILIZE AGAINST THE DOLLAR REMOVING ONE OF THE LAST OBSTACLES TO UNBRIDLED MARKET OPTIMISM IN ADDITION A JAPANESE NEWS REPORT THURSDAY THAT DOMESTIC DEMAND FOR SEMICONDUCTORS IS REBOUNDING SPURRED PURCHASES OF SHARES IN THAT SECTOR SHIPPING OIL AND METAL ISSUES ALSO SURGED IN HEAVY TURNOVER FOREIGN AND INDIVIDUAL INVESTORS SNAPPED UP EXPORTORIENTED SHARES AS WELL AS ISSUES IN SOME LAGGARD SECTORS THOUGH RECENT POSITIVE ECONOMIC INDICATORS DIDN'T LOOK AS GOOD ON CLOSER INSPECTION INVESTORS DIDN'T LET THAT STOP THEM FOR EXAMPLE THE MARKET WAS CHEERED BY LAST WEEK'S REPORT THAT JAPAN'S MARCH INDUSTRIAL OUTPUT ROSE 05 FROM FEBRUARY EVEN THOUGH JAPAN'S TRADE MINISTRY HAD PREDICTED A 23 JUMP MEANWHILE EUROPEAN INVESTORS WITH PORTFOLIOS THAT REMAINED UNDERWEIGHTED IN JAPANESE STOCKS CONTINUED TO BUY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ADVANCED 263 POINTS TO 28131 THE FT 30STOCK INDEX CLIMBED 211 POINTS TO 22214 VOLUME WAS 5261 MILLION SHARES COMPARED WITH 542 MILLION SHARES IN THE PREVIOUS SESSION PRICES CLOSED NEAR INTRADAY PEAKS WITH MOST OF THE INCREASES ATTRIBUTED TO SHORTCOVERING OF THE JUNE STOCKINDEX FUTURES CONTRACT ON THE FINAL DAY OF A THREEWEEK TRADING ACCOUNT THIS HELPED PROPEL THE 100STOCK INDEX ABOVE A PERCEIVED BARRIER OF 2800 WHICH IN TURN PROMPTED A FRESH WAVE OF BUYING AS INVESTORS TOOK NEW POSITIONS TO PREPARE FOR THE TRADING ACCOUNT THAT STARTS TOMORROW STILL TURNOVER WAS THIN AS MANY DEALERS LEFT EARLY FOR THE LONG HOLIDAY WEEKEND THE LONDON MARKET IS CLOSED TODAY FRIDAY'S RALLY RECEIVED A FRESH BOOST IN THE FINAL TWO HOURS OF DEALINGS WALL STREET HAD A ROBUST OPENING IN FRANKFURT STOCK PRICES ENDED LITTLE CHANGED ON A LACK OF MARKETMOVING NEWS THE DAX 30STOCK INDEX ROSE 325 POINTS TO 162719 AS TECHNICAL FACTORS CONTINUED TO DOMINATE ACTIVITY THE MAIN INDEX'S SLIGHT RISE WAS ATTRIBUTED PARTLY TO COVERING SOME OF THE HEAVY LOAD OF SHORT OR OVERSOLD POSITIONS UNCERTAINTY ABOUT GERMANY'S NEXT MOVES ON INTEREST RATES CONTINUED TO RUN AS A MARKET UNDERCURRENT IN PARIS SHARES FINISHED HIGHER ON A LATE BURST OF BUYING AFTER A SEESAW SESSION IN WHICH FUNDAMENTALS HAD LITTLE INFLUENCE THE LATE RALLY WAS LINKED TO INDEX FUTURES AND DERIVATIVES EXPIRATION ACTIVITY PRICES MIGHT HAVE ENDED EVEN HIGHER BUT FOR A TECHNICAL PROBLEM IN THE FINAL HOUR THAT SUSPENDED TRADING IN MOST STOCKS INVESTORS HAD LITTLE REACTION TO NEWS THAT FRANCE'S MERCHANDISE TRADE SURPLUS NARROWED IN JANUARY TO A LEVEL THAT WAS BETTER THAN EXPECTED THOUGH A DROP IN IMPORTS SUGGESTED WEAK ECONOMIC ACTIVITY MILAN SHARE PRICES ENDED WEAKER AFTER BOUNCING BACK FROM SEVERE DROPS IN HECTIC TRADING AMID FEARS OF AN ITALIAN GOVERNMENT CRISIS AFTER FOUR NEW CABINET MINISTERS RESIGNED THOUGH ANXIETY EASED AS NEGOTIATIONS ON A NEW GOVERNMENT PROVIDED HOPEFUL SIGNS FOR A SOLUTION IN STOCKHOLM EQUITIES CLIMBED ON SPECULATIVE BUYING OF INEXPENSIVE SHARES IN BRUSSELS SHARES ENDED MIXED BUT THE BOURSE'S LEADING INDEX EDGED UP TO SNAP A 10SESSION SLUMP IN HONG KONG STOCK PRICES FELL AS BUYING INTEREST WANED AHEAD OF THE WEEKEND TAIPEI SHARES ROSE ON NEWS THAT TAIWAN GOVERNMENT OFFICIALS BELIEVE THE US IS LIKELY TO IMPROVE TAIWAN'S TRADE STATUS MANILA PRICES RALLIED TO A RECORD HIGH IN UNUSUALLY HEAVY VOLUME MARKED BY SEVERAL BLOCK SALES WELLINGTON STOCKS FELL ON PROFITTAKING 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 9305030172 930503 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT ESSEX GROUP INC 200 MILLION OF NOTES DUE MAY 1 2003 PRICED AT PAR TO YIELD 10 ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS NONCALLABLE FOR FIVE YEARS RATED SINGLEB1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP SEALY CORP 200 MILLION OF SENIOR SUBORDINATED NOTES DUE MAY 1 2003 PRICED AT PAR TO YIELD 95 ACCORDING TO MCM CORPORATEWATCH THE ISSUE IS NONCALLABLE FOR FIVE YEARS RATED SINGLEB1 BY MOODY'S AND SINGLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP UDC HOMES INC 115 MILLION OF SENIOR NOTES DUE MAY 1 2003 PRICED AT PAR TO YIELD 1175 ACCORDING TO MCM CORPORATEWATCH THE ISSUE WAS INCREASED 15 MILLION FROM AN ORIGINALLY PLANNED 100 MILLION THE ISSUE IS NONCALLABLE FOR FIVE YEARS RATED SINGLEB2 BY MOODY'S AND SINGLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DILLON READ & CO ELECTRONIC RETAILING SYSTEMS INTERNATIONAL INC INITIAL OFFERING OF 16 MILLION COMMON SHARES PRICED AT 13 APIECE THROUGH MONTGOMERY SECURITIES AS THE REPRESENTATIVE OF THE UNDERWRITERS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY NOMURA SECURITIES THE OFFERING SERIES 199389 IS BACKED BY FANNIE MAE'S 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7625 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2975 YEARS BAYERISCHE VEREINSBANK AG GERMANY 100 MILLION CANADIAN DOLLARS OF 7 1/4 EUROBONDS DUE DEC 21 1998 AT ISSUE PRICE 10065 VIA HAMBROS BANK LTD REOFFERED AT 99025 TO YIELD 749 SPREAD 52 BASIS POINTS ABOVE CANADA'S 6 1/2 BOND DUE SEPTEMBER 1998 FEES 1 7/8 POINTS 9305030171 930503 MARKETING & MEDIA RETAILER RH MACY CONSIDERS CREATING TV SHOPPING UNIT NEW YORK RH MACY & CO SAID IT IS EXPLORING THE HOMESHOPPING MARKET AND PEOPLE FAMILIAR WITH ITS PLANS SAY IT IS CONSIDERING ITS OWN 24HOUR HOMESHOPPING CABLE NETWORK IN A STATEMENT FRIDAY THE NEW YORK RETAILER SAID WE RECOGNIZE THE BUSINESS DEVELOPMENT POTENTIAL THAT THE HOME SHOPPING FORMAT MIGHT OFFER A RETAILER SUCH AS MACY'S BUT NO FINAL DECISIONS HAVE BEEN MADE A MACY'S SPOKESWOMAN DECLINED TO ELABORATE WHEN ASKED IF THE RETAILER WOULD LAUNCH THE VENTURE ALONE OR WITH PARTNERS MACY'S ISN'T EXPECTED TO MAKE A SIGNIFICANT INVESTMENT INTO SUCH A VENTURE CBS 60 MINUTES EXECUTIVE PRODUCER DON HEWITT AND FORMER CBS EXECUTIVE THOMAS LEAHY ARE BELIEVED TO BE WORKING WITH MACY'S TO DEVELOP A TV SHOPPING BUSINESS NEITHER MESSRS HEWITT NOR LEAHY COULD BE REACHED FOR COMMENT IN RECENT MONTHS A NUMBER OF WELLKNOWN APPAREL MARKETERS SUCH AS HARVEBENARD LTD AND KENAR LTD HAVE BEGUN SELLING MERCHANDISE ON THE THREE HOMESHOPPING CHANNELS ALREADY IN EXISTENCE HOME SHOPPING NETWORK INC QVC NETWORK INC AND QVC'S FASHION CHANNEL AND THIS MONTH NEW YORK SPECIALTYSTORE CHAIN SAKS FIFTH AVENUE A UNIT OF INVESTCORP WILL DEBUT ON QVC THE FIRST OF FOUR SHOPPING PROGRAMS IT PLANS FOR THIS YEAR LAST MONTH MACY'S OFFICIALS REVEALED THAT THE RETAILER WAS STUDYING THE POSSIBILITY OF SELLING MERCHANDISE ON TV AT THE TIME A COMPANY SPOKESMAN NOTED THAT THE COMPANY COULD REACH MILLIONS OF SHOPPERS WHO ARE FAMILAR WITH MACY'S DUE TO ITS ANNUAL THANKSGIVING PARADE BUT WHO DON'T LIVE ON THE EAST OR WEST COASTS WHERE MOST OF ITS STORES ARE LOCATED IF MACY'S LAUNCHES A SHOPPING NETWORK IT WILL BE THE SECOND RETAILER TO DO SO IN 1989 DALLASBASED JC PENNEY & CO CREATED A CABLE NETWORK THAT SOLD APPAREL AND HOUSEWARES IN 725 MARKETS JC PENNEY FOLDED THE NETWORK 18 MONTHS LATER CITING POOR SALES 9305030170 930503 LEISURE & ARTS ON SPORTS A WIN FOR THE OLD GUARD BY FREDERICK C KLEIN LOUISVILLE KY THE 119TH KENTUCKY DERBY WAS WIDELY ADJUDGED TO BE A RACE ANYBODY COULD WIN AND ANYBODY DID SEA HERO A 13TO1 LONG SHOT ON MERIT WHO'D COME TO CHURCHILL DOWNS OFF UNDERWHELMING PERFORMANCES IN FLORIDA AND AT KEENELAND RACE COURSE DOWN THE ROAD IN LEXINGTON TRIUMPHED SATURDAY BY 2 1/2 LENGTHS IN A FIELD OF 19 LATER HIS JOCKEY JERRY BAILEY EXPLAINED WHY I'M A GREAT BELIEVER IN A LOT OF LUCK SAID BAILEY WHO SHOULD CHANGE HIS FIRST NAME TO FRANK AND THAT'S WHAT WE HAD SEA HERO HAD SOME OTHER THINGS TOO SUCH AS A GREAT RIDE BY HIS VETERAN RIDER MORE ACCURATELY MAKE THAT A GREAT MOVE THAT CAME JUST BEFORE THE HEAD OF THE HOMESTRETCH WHEN SEA HERO A WELLBUILT BROWN COLT WAS IN SIXTH OR SEVENTH PLACE WITH FOES ON ALL SIDES BAILEY'S ONLY OPENING WAS TO THE INSIDE ALONG THE RAIL AND IN A SWOOSH HE TOOK IT BARRELING HIS ANIMAL PAST A FADING STORM TOWER AND THREE OR FOUR OTHER BEASTS AND MOVING JUST BEHIND THE LEADER PERSONAL HOPE SEVERAL STRIDES MORE AND PERSONAL HOPE WAS PASSED LEAVING ONLY ABOUT 1000 FEET OF TANCOLORED RACING STRIP BETWEEN SEA HERO AND THE WIRE IT DID NOT DETER HIM THE WINNER REWARDED HIS 2WIN BACKERS WITH 2780 THE FOURTH STRAIGHT DOUBLEFIGURE PAYOUT IN A RACE THAT NO FAVORITE HAS WON SINCE 1979 MORE NOTEWORTHY STILL WAS THE FACT THAT PRAIRIE BAYOU THE BETTING PICK OF THE CROWD OF 136817 AND MAYBE 500000 MORE PEOPLE AT HOME IT'S MY OBSERVATION THAT EVERY DERBY ATTENDEE ALSO CARRIES THE WAGERS OF THREE OR FOUR FRIENDS WENT OFF AT ODDS OF ALMOST 4 1/2 TO 1 THE LONGEST FOR ANY FAVORITE IN THE HISTORY OF THE VENERABLE CONTEST FOR THREEYEAROLDS JUST BEHIND PRAIRIE BAYOU IN THE BETTING WERE BULL INTHE HEATHER AND UNION CITY AT ABOUT 5 TO 1 AND 6 TO 1 RESPECTIVELY THAT MEANT A BETTOR COULD HAVE PUT EQUAL AMOUNTS OF MONEY ON EACH OF THE TOP THREE CHOICES AND SHOWED A PROFIT IF ANY HAD TRIUMPHED AS IT WAS ONLY PRAIRIE BAYOU FINISHED IN THE MONEY AS A CLOSING BUT WELLBEATEN SECOND THE UNPRECEDENTED BETTING SPREAD MIRRORED EXPERT OPINION THAT THE CURRENT US THREEYEAROLD CROP IS MEDIOCRE AT BEST BUT IT ALSO REFLECTED THE BALANCE OF RUNNING STYLES THE FIELD CONTAINED THERE WERE FRONTRUNNERS IN STORM TOWER AND PERSONAL HOPE HORSES LIKE SEA HERO UNION CITY AND MI CIELO THAT LIKE TO RUN JUST BEHIND THE LEADERS AND CONFIRMED LATERUNNERS IN PRAIRIE BAYOU BULL INTHE HEATHER AND KISSIN KRIS IT WAS NO WONDER THEN THAT BAILEY SAID PRERACE OVERCONFIDENCE WAS NO PROBLEM IN HIS CAMP WITH 18 OTHER HORSES RUNNING YOU COULDN'T PLAN YOUR COURSE HE SAID YOU JUST HAD TO HOPE YOU'D HAVE OPPORTUNITIES AND BE ABLE TO TAKE ADVANTAGE OF THEM BUT IF SEA HERO WASN'T THE FAVORITE SATURDAY IT DIDN'T MEAN HIS VICTORY WAS UNPOPULAR HIS OWNER TRAINER AND JOCKEY ALL HAVE PAID THEIR RACING DUES AND THEN SOME RACE GOERS DUES PAYERS THEMSELVES APPRECIATED THAT THE OWNER IS PAUL MELLON WHO AT AGE 85 IS CONSIDERED A PILLAR OF THE SPORT BUT HAD NEVER BEFORE POSSESSED A DERBY WINNER THE MELLON NAME LONG HAS BEEN SYNONYMOUS WITH MONEY IN THIS LAND AND PAUL MELLON'S MAIN MISSION HAS BEEN TO SPEND IT ON ART HE'S A NOTABLE COLLECTOR AS WELL AS HORSEFLESH BUT WHILE A KENTUCKY DERBY TROPHY HAD HERETOFORE ELUDED HIS VIRGINIABASED ROKEBY STABLE OTHER BAUBLES HADN'T SEA HERO'S SATURDAY VICTORY MADE MELLON THE FIRST OWNER TO WIN THAT RACE ENGLAND'S EPSOM DERBY AND FRANCE'S ARC DE TRIOMPHE SEA HERO'S TRAINER IS TALL GRAYHAIRED MACKENZIE MACK MILLER WHO AT 71 CAPTURED HIS FIRST DERBY WITH HIS FIRST ENTRY IN THE RACE SINCE 1968 MILLER HAS WON OTHER IMPORTANT PRIZES OF COURSE BUT THE NATIVE KENTUCKIAN WHO SADDLED HIS FIRST WINNER AT THE LOUISVILLE TRACK 43 YEARS AGO SAID THIS ONE WAS SPECIAL IT'S THE BEST IT MAKES YOU WANT TO CRY A BIT HE TOLD REPORTERS AND HE NEARLY DID IT ALSO WAS THE FIRST DERBY WIN FOR JOCKEY BAILEY A 35YEAROLD TEXAN WHO'S VISITED THE WINNER'S CIRCLE MORE THAN 2600 TIMES IN AN 18YEAR CAREER AND LIKE MILLER HE READILY ADMITTED THAT UNTIL HE PASSED THE FINISH LINE SATURDAY HE WAS A GOOD DEAL LESS THAN CERTAIN THAT SEA HERO WOULD BE THE ONE HE WAS IMPRESSIVE ENOUGH AS A TWOYEAROLD WINNING THE RICH CHAMPAGNE STAKES AT BELMONT IN OCTOBER BUT SLUMPED BADLY THEREAFTER FINISHING SEVENTH NINTH AND THIRD IN THREE FALL OR WINTER RACES IN FLORIDA A FOURTHPLACE FINISH BEHIND WINNER PRAIRIE BAYOU IN THE APRIL 10 BLUE GRASS AT KEENELAND WAS BETTER BUT FAR FROM EYE POPPING BUT MILLER SAID THAT THE SON OF POLISH NAVY A TWOYEAROLD STAR OF SEVERAL SEASONS AGO AND A FEMALE LINE OF THE BLUEST BLOOD HAD A GREAT PEDIGREE AND WAS BIG AND STRONG TO BOOT AND WHEN THE COLT PERKED UP IN TRAINING AFTER ESCAPING FLORIDA'S HEAT IN LATE FEBRUARY HE AND MELLON DECIDED HE MERITED A DERBY SHOT THE TRAINER THOUGH ALLOWED THE POSSIBILITY THAT AGE HIS AND HIS PATRON'S MIGHT HAVE PLAYED A ROLE IN THAT CHOICE WOULD THEY HAVE ENTERED A HORSE WITH SEA HERO'S CREDENTIALS 20 YEARS AGO HE WAS ASKED TOUGH TO SAY HE ANSWERED WHATEVER THE PRELIMINARIES SEA HERO PUT IN A GOOD TWO MINUTES TWO AND TWOFIFTHS SECONDS ON A WARM BUT OCCASIONALLY SHOWERY AFTERNOON AND IT WAS WORTH 735900 TO HIS HANDLERS HE RAN WELL ENOUGH SAVING HIS STRENGTH THROUGH THE RACE'S EARLY STAGES AND TURNING ON THE SPEED WHEN BAILEY NEEDED IT TO MAKE HIS CRUCIAL TOPOFTHEHOMESTRETCH MOVE AS FOR THE WINNER'S LUCK EVERY TIME WE HIT AN IMPASSE THE OTHER HORSES PARTED LIKE THE RED SEA SAYETH BAILEY OTHER CONTESTANTS COULDN'T SAY AS MUCH PRAIRIE BAYOU A WINNER OF SIX OF NINE COMING IN CHARGED LATE AS ADVERTISED BUT VERY WIDE AND THE RESULTING EXTRA DISTANCE HURT HIM BIG BULL INTHE HEATHER WHO'S DAD FERDINAND WON THIS RACE IN 1986 NEVER THREATENED NEITHER DID UNION CITY WHOSE FAST DERBYWEEK WORKOUTS CAUSED EXCITEMENT IT WAS TOO GOOD TO BE TRUE CONCLUDED BAILEY FOR THE FIRST TIME ALL DAY HE WAS WRONG 9305030169 930503 CORPORATE FOCUS INFORMIX RIDES HIGHTECH WAVE WITH UNIX SYSTEM SOME ATTRIBUTE COMPANY'S STAYING POWER TO COST CONTROLS GROWTH IN EUROPE BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL MENLO PARK CALIF WHEN PHILLIP E WHITE ARRIVED NEARLY FOUR YEARS AGO TO TAKE THE HELM OF INFORMIX CORP THE SOFTWARE CONCERN WAS SPUTTERING AND MR WHITE WAS SEEING DOUBLE THERE WERE TWO SALES FORCES TWO MANUFACTURING OPERATIONS TWO MARKETING OPERATIONS TWO OF EVERYTHING HE RECALLS THAT'S BECAUSE INFORMIX WAS REELING FROM A BOTCHED ACQUISITION OF ANOTHER SOFTWARE MAKER INNOVATIVE SOFTWARE INC KANSAS CITY KAN IN 1988 ALTHOUGH THE DEAL WAS SUPPOSED TO EXPAND INFORMIX'S PRODUCT LINE AND DISTRIBUTION SYSTEM IT MAINLY RESULTED IN EXPANDING COSTS EMPLOYMENT WENT FROM 350 TO 1200 EXPENSES BALLOONED AND REVENUE LAGGED WHAT'S MORE IN 1990 THE COMPANY HAD TO SCRAP ACCOUNTING METHODS THAT WERE UNDER FIRE FROM AUDITORS AND INVESTORS FORCING WRITEOFFS THAT YEAR INFORMIX HAD A 463 MILLION NET LOSS ITS FUTURE WAS IN DOUBT WE WERE DEFINITELY ON THE ROPES SAYS MR WHITE CHAIRMAN AND CHIEF EXECUTIVE THE COMPANY LACKED FOCUS NOW HOWEVER THE PICTURE IS COMING INTO SHARPER RELIEF INFORMIX SPECIALIZES IN SOFTWARE PRODUCTS THAT MANAGE ELECTRONIC DATABASES PARTICULARLY IN NETWORKS OF PCS AND WORKSTATIONS IN ONE OF THE MORE NOTABLE TURNAROUNDS IN THE COMPUTER BUSINESS INFORMIX SLASHED COSTS LAUNCHED HIGHLY PRAISED NEW PRODUCTS AND CAPTURED A SIZEABLE CHUNK OF EXPLODING MARKETS IN EUROPE AND ASIA INFORMIX STOCK WHICH TRADED AS LOW AS 131 A SHARE IN JANUARY 1992 HAS SOARED TO A RECENT RANGE OF ABOUT 38 A SHARE BOTH FIGURES ARE ADJUSTED FOR A 2FOR1 STOCK SPLIT IN SEPTEMBER ITS MARKET CAPITALIZATION HAS RISEN 24FOLD IN THE PAST 15 MONTHS TO ABOUT 12 BILLION MOREOVER LAST MONTH INFORMIX REPORTED FIRSTQUARTER EARNINGS OF 115 MILLION OR 34 CENTS A SHARE REVENUE ROSE 30 TO 77 MILLION THE RESULTS BLEW RIGHT PAST THE EXPECTATIONS OF WALL STREET WHERE MOST ANALYSTS HAD FORECAST PERSHARE EARNINGS OF BETWEEN 25 CENTS AND 28 CENTS IN THE YEARAGO QUARTER INFORMIX EARNED 114 MILLION OR 36 CENTS A SHARE ON REVENUE OF 591 MILLION THAT INCLUDED 10 CENTS A SHARE FROM A ONETIME GAIN RELATED TO A CONTRACT WITH BOEING CO IN OVERTHECOUNTER TRADING FRIDAY INFORMIX CLOSED AT 3575 DOWN 175 INFORMIX IS CLEANING UP SAYS PETER KASTNER VICE PRESIDENT OF ABERDEEN GROUP A BOSTON COMPUTER CONSULTING AND RESEARCH FIRM AND THAT'S AN ACCOMPLISHMENT GIVEN THE MESS THE COMPANY WAS IN NOT LONG AGO NOW PARTLY BY DESIGN AND GOOD LUCK INFORMIX RIDES THE BIGGEST WAVE IN HIGHTECH THE RAPID SHIFT FROM BULKY MAINFRAME COMPUTERS TO NETWORKS OF POWERFUL PERSONAL COMPUTERS AND WORKSTATIONS BACK WHEN IT WAS STRUGGLING MR WHITE AND INFORMIX BET BIG THAT UNIX COMPUTER OPERATING SYSTEMS WOULD EVENTUALLY TRIUMPH OVER PROPRIETARY OPERATING SYSTEMS SPECIFIC TO CERTAIN MACHINES SUCH AS INTERNATIONAL BUSINESS MACHINES CORP'S BIG MAINFRAMES UNIX IS A SOCALLED OPEN SYSTEM IT CAN CONTROL MANY DIFFERENT KINDS OF COMPUTERS UNIX SALES ARE NOW BOOMING BECAUSE OF THE RUSH TOWARD PC NETWORKS AND AS THEY SURGE SO DO SALES OF INFORMIX'S UNIX COMPATIBLE PRODUCTS AMONG THE HOTTEST INFORMIX PRODUCTS IS SOFTWARE THAT LINKS NETWORKS OF UNIXBASED PCS AND WORKSTATIONS ENABLING THEM TO SHARE INFORMATION ON DATABASES ANOTHER WINNER ANALYSTS SAY IS PROGRAMS THAT ENABLE USERS TO WRITE THEIR OWN DATABASE APPLICATIONS BIG CUSTOMERS INCLUDE KMART CORP WALMART STORES INC AND THE HYATT HOTEL CHAIN WHICH USE INFORMIX SYSTEMS TO MANAGE INVENTORY WE WERE IN THE RIGHT PLACE AT THE RIGHT TIME BUT WE WERE THERE FOR A REASON SAYS HOWARD GRAHAM INFORMIX'S CHIEF FINANCIAL OFFICER OTHER COMPANIES IN DATABASE MANAGEMENT ALSO HAVE FARED WELL LATELY BECAUSE OF THE SAME TREND ORACLE CORP THE LARGEST COMPANY IN THE FIELD AND SYBASE INC ANOTHER RIVAL RECENTLY REPORTED STRONG QUARTERS MAJOR COMPETITORS IN THE BUSINESS ALL GREW AT RATES OF BETWEEN 45 AND 65 IN LAST YEAR'S FOURTH QUARTER ALONE OVERALL THE MARKET FOR UNIX DATABASE MANAGEMENT SOFTWARE WHICH SURGED 63 TO 12 BILLION LAST YEAR IS EXPECTED BY SOME INDUSTRY EXECUTIVES TO INCREASE FIVEFOLD IN THE NEXT FEW YEARS SOME ANALYSTS HOWEVER SEE A SHAKEOUT LOOMING INDEED SOME THINK IT MAY HAVE ALREADY STARTED LAST MONTH ASK GROUP INC ANOTHER INFORMIX COMPETITOR HAD A FIRSTQUARTER LOSS OF 674000 OR THREE CENTS A SHARE ITS REVENUE SLIPPED 7 TO 1005 MILLION THIS BUSINESS IS LIKE A MARATHON BUT EVERYONE IS RUNNING AT A TREMENDOUS PACE AND NOBODY KNOWS WHERE THE FINISH LINE IS SAYS DAVID READERMAN AN ANALYST WITH LEHMAN BROTHERS SOME COMPETITORS WILL INEVITABLY LAG MR WHITE AND SEVERAL ANALYSTS BELIEVE INFORMIX MAY HAVE MORE STAYING POWER THAN SOME OF ITS RIVALS FOR ONE THING THE COMPANY'S EXPENSES ARE AMONG THE INDUSTRY'S LOWEST MANUFACTURING COSTS FOR EXAMPLE HAVE DROPPED TO ABOUT 5 OF REVENUE FROM ABOUT 13 FOUR YEARS AGO TOUGH COSTCONTROLS ARE A MAJOR REASON THAT INFORMIX'S FIRSTQUARTER PROFIT MARGINS WERE A HEALTHY 23 BEYOND THAT INFORMIX IS GROWING FASTER IN INTERNATIONAL MARKETS THAN SOME COMPETITORS ITS FIRSTQUARTER EUROPEAN SALES SURGED 48 WHILE ORACLE'S ROSE 4 IN ADDITION INFORMIX HAS JUST INTRODUCED A SLEW OF PRODUCTS AIMED AT THE MULTIMEDIA MARKET ANOTHER OF HIGHTECH'S HOTTEST AREAS ALL THIS LEADS SOME ANALYSTS TO PREDICT ROBUST GROWTH FOR INFORMIX THROUGH AT LEAST THE REST OF THIS YEAR LEHMAN BROTHERS' MR READERMAN PROJECTS FULLYEAR EARNINGS OF 155 A SHARE FOR ALL OF 1992 THE COMPANY EARNED 478 MILLION OR 151 A SHARE ON REVENUE OF 2836 MILLION INFORMIX COULD EVENTUALLY GET TRAMPLED BY SUCH RIVALS AS THE MUCH LARGER ORACLE IT MAY ALSO FACE FUTURE COMPETITION FROM HEAVYWEIGHTS MICROSOFT CORP AND BORLAND INTERNATIONAL INC WHICH COULD SOMEDAY MOVE INTO THE DATABASE MANAGEMENT MARKET BUT MR WHITE SITTING IN AN INFORMIX CONFERENCE ROOM NEAR A MOCK TOMBSTONE READING RIP YOUTH GIVEN TO HIM BY COWORKERS FOR HIS 50TH BIRTHDAY A FEW MONTHS BACK IS CALMLY CONFIDENT WE BELIEVE THAT BY ALMOST ANY MEASURE WE BEAT OUR COMPETITORS HE DECLARES THAT'S AN UNCHARACTERISTICALLY BOLD UTTERANCE FOR MR WHITE A CONSERVATIVE BUSINESSMAN A FEW YEARS AGO HE CAUSED NEARPANIC AMONG INFORMIX INVESTORS BY PUBLICLY UNDERSTATING EARNINGS GROWTH IN AN INTERVIEW JUST DAYS BEFORE A QUARTERLY REPORT WAS TO BE ISSUED INVESTORS FEARED THE TIGHTLIPPED MR WHITE WAS SIGNALING THAT EARNINGS WERE DISASTROUS AND THEY DUMPED INFORMIX STOCK BUT IN FACT EARNINGS FOR THAT PERIOD WERE HIGHER THAN WALL STREET ESTIMATES 9305030168 930503 MARKETING & MEDIA ADVERTISING BBDO CREATES SPOTS SPICING UP WAYS TO SERVE 58YEAROLD SPAM BY KEVIN GOLDMAN MOVE ASIDE BIG MAC OUT OF THE WAY WHOPPER AMERICA HAD BETTER BRACE ITS BELLY FOR SOMETHING NEW SOMETHING DIFFERENT SPAM IS CLOSING IN ON THE SALE OF THE FIVE BILLIONTH CAN OF THE PINK PORK PRODUCT OFT DISMISSED AS MYSTERY MEAT BY ITS DETRACTORS WHAT BETTER TIME THEN FOR SPAM'S NEW PRIMETIME ADVERTISING BLITZ IT AIMS TO COMMAND NEW RESPECT FOR SPAM TO MAKE SPAM HIP TO COOK UP A NEW SPAM SPECIALTY GEO A HORMEL & CO IS SPENDING 12 MILLION TO PERSUADE AMERICA TO REEMBRACE THE 58YEAROLD PRODUCT WITH THIS ADVICE JUST CUT IT LENGTHWISE AND GRILL THE SLAB LIKE A HAMBURGER BEGINNING THIS WEEK VIEWERS OF PICKET FENCES RESCUE 911 THE COUNTRY MUSIC AWARDS SPECIAL AND A PASSEL OF OTHER PROGRAMMING WILL SEE SPOTS FROM OMNICOM GROUP'S BBDO PRESENTING SPAM AS NEVER BEFORE DECKED WITH CAJUN SPICES GRILLED ON A BARBECUE BY SMILING YOUNGSTERS ON A CALIFORNIA BEACH SHROUDED IN NEON ON A GIANT COMPUTERIZED BILLBOARD IN NEW YORK'S TIMES SQUARE TURNING SPAM INTO SOMETHING AKIN TO GROUND CHUCK SEEMS LIKE AN AWFULLY LONG REACH EVEN FOR AN ADVERTISER SPAM'S MAIN CLAIM IS ITS STATUS AS A CULTURAL COMEDY ICON THE GRIST FOR COUNTLESS COMEDY MONOLOGUES AND THE SUBJECT OF A DEVASTATING MONTY PYTHON BIT IT CONJURES UP EVERYTHING YUCKY ABOUT CANNED PROCESSED FOOD FROM THE FATLADEN '50S EVEN HORMEL AND BBDO SEEM TO HAVE HAD A TOUGH TIME IN THEIR EFFORT IN ONE AD THAT WAS USED IN TEST MARKETS IN THE SOUTH AND THE WEST AN ACTOR PLAYING JOE AVERAGE LOOKS PUZZLED AND TELLS THE CAMERA SPAM WAS MADE FROM HAM RIGHT SO REALLY THIS IS A HAMBURGER HE SOUNDS AS IF HE IS TRYING TO CONVINCE HIMSELF YET SPAM IS ON SOMETHING OF HOT STREAK LATELY IN SUPERMARKETS IT SHOWED UNCANNY SALES GROWTH OF 8 IN THE 12WEEK PERIOD ENDED MARCH 21 COMPARED WITH A YEAR AGO CLIMBING UP TO 237 MILLION ACCORDING TO INFOSCAN DATA FROM INFORMATION RESOURCES INC HORMEL SAYS AGGRESSIVE REGIONAL ADVERTISING IN THE SOUTH AND THE WEST INCLUDING THE TEST AD PUSHING THE SPAMBURGER HELPED THE PRODUCT WHICH SELLS FOR 159 FOR A 12OUNCE CAN SPAM'S SALES WERE UP A RESPECTABLE 43 IN THE PAST YEAR TO JUST SHY OF 100 MILLION OR AN 82 SHARE OF THE MARKET THAT IRI DEFINES FOR CANNED LUNCHEON MEATS ITS CLOSEST COMPETITOR ARMOUR STAR TREET MANUFACTURED BY DIAL CORP'S ARMOUR INTERNATIONAL CO HAD 14 GROWTH TO 153 MILLION IN THE 52WEEK PERIOD AND A 126 SHARE OF THE MARKET IT HAS BROAD APPEAL IN EVERY AGE CATEGORY SAYS HARRY BALZER VICE PRESIDENT OF NPD GROUP A CHICAGO FORM THAT TRACKS AMERICAN'S EATING HABITS ALTHOUGH HE ADDS IT TENDS TO SKEW TO LOWERINCOME HOUSEHOLDS AND ISN'T POPULAR IN HOMES OF THE COLLEGEEDUCATED AND THE PROFESSIONAL THE COMPANY LIKES TO NOTE THAT SOME 60 MILLION PEOPLE EAT 38 CANS PER SECOND DESPITE SPAM HOLDING ITS OWN HOWEVER THERE IS A NEED TO CONTEMPORIZE THE BRAND AND SHOW CONSUMERS ALTERNATIVE USES SAYS JOEL JOHNSON HORMEL'S PRESIDENT AND CHIEF OPERATING OFFICER THE COMPANY HAS EVEN TRADEMARKED THE SPAMBURGER NAME ALTHOUGH IT SEEMS IMPROBABLE THAT ANY RIVAL WOULD WANT TO INFRINGE ON THAT FRANCHISE WE HAD TO EXPAND THE USER BASE SAYS JON FIRESTONE PRESIDENT AND CHIEF EXECUTIVE OFFICER AT BBDO'S MINNEAPOLIS OFFICE THE WHOLE COUNTRY IS AWARE OF THE BRAND BUT THERE ARE A LOT OF NONTRYERS WE NEEDED TO GET THEM TO TRY IT AND TO GET THOSE USERS TO DO SO MORE OFTEN BUT SPAM SPURNS HUMOR IN THE NEW SPOTS DESPITE THE BRAND'S SPECIAL PLACE IN AMERICAN KITSCH LATENIGHT TV HOST DAVID LETTERMAN ONCE PROPOSED SPAMONAROPE FOR PEOPLE WHO GET HUNGRY IN THE SHOWER SOME OF THE BRAND'S MARKETERS SEEM DOWNRIGHT DEFENSIVE IF ANYONE DERIDES THE PRODUCT ASK A FRIEND WHETHER HE'S EVER EATEN SPAM AND YOU MIGHT GET AN ANSWER LIKE NOT KNOWINGLY BUT ASK THE SAME OF BBDO'S MR FIRESTONE AND HE BRISTLES AT THE INSINUATION WE FRY IT UP AT HOME FOR BREAKFAST WITH PANCAKES OR EGGS HE INSISTS IT'S A CONVENIENCE FOR BREAKFAST BECAUSE IT DOESN'T HAVE TO BE REFRIGERATED THUS THE NEW AD CAMPAIGN WON'T PLAY UP SPAM'S UNIQUE POSITION IN ODDAMERICANA WHO FOR EXAMPLE CAN FORGET SPAMORAMA THE ANNUAL COOKING CONTEST USING THE DELICACY EACH SPRING IN HORMEL'S HOME TOWN OF AUSTIN TEXAS AND FEW PEOPLE MIGHT REALIZE THAT SPAM CANS AND OTHER SPAM MEMORABILIA SUCH AS IT IS ARE THE SOLE CONTENTS OF THE HORMEL MUSEUM THE MAUI MALL IN HAWAII HOLDS A SPAM RECIPE CONTEST EACH YEAR SEATTLE IS THE PROUD HOST OF AN ANNUAL SPAM CARVING CONTEST THE 1990 WINNER STONEHENGE AND WHAT ABOUT THE SPAM JAMBOREE HELD LAST SEPTEMBER WITH A COSTUME CONTEST A FUN WALK AND BEST OF ALL A SPAM BREAKFAST DESPITE ALL THE HOOPLA SPAM'S ORIGINS ARE A BIT MORE HUMBLE IT WAS INVENTED BY JAY HORMEL THE SCION OF COMPANY FOUNDER GEORGE AS HE WAS WORKING ON A MIX OF CHOPPED PORK SHOULDER AND HAM FOR HIS THREE YOUNG SONS IT STARTED OUT AS HORMEL SPICED HAM AND A BROTHER OF A HORMEL EXECUTIVE SUGGESTED SHORTENING IT TO SPAM IN 1937 HORMEL'S PRESIDENT MR JOHNSON SAYS POKE FUN AT THE PORK PRODUCT ALL YOU WANT THE COMPANY IS USED TO IT THE JOKES SHOW AWARENESS OF THE BRAND HE FIGURES WE GENERALLY TURN THE OTHER CHEEK IN RECENT YEARS FASHION COMPANIES FROM BENETTON TO CALVIN KLEIN HAVE TURNED TO THE PRINTING PRESSES IN ORDER TO SEND A POWERFUL ADVERTISING MESSAGE TO CONSUMERS THIS MONTH CHANEL INC THE FRENCH FASHION HOUSE IS DISTRIBUTING LE MAGAZINE CHANEL FREE OF CHARGE TO 25000 SELECTED CLIENTS AND FASHION EDITORS THE 162PAGE MAGAZINE WHICH WAS PRODUCED IN FRANCE AT THE COST OF 300000 CONTAINS ARTICLES ABOUT CHANEL APPAREL AND COSMETICS WRITTEN BY FRENCH JOURNALISTS AND ILLUSTRATED BY FAMOUS FASHION PHOTOGRAPHERS SUCH AS VICTOR SKREBNESKI AND PATRICK DEMARCHELIER AND FASHION SKETCHES BY CHANEL DESIGNER KARL LAGERFELD THE MAGAZINE WHICH WILL BE PUBLISHED ANNUALLY WILL ALSO BE DISPLAYED AT RETAILERS SELLING CHANEL MERCHANDISE INCLUDING CHANEL'S TEN US BOUTIQUES CHANEL HOPES THAT IN THE HOMES OF CHANEL FANS THE MAGAZINE WILL HANG AROUND ON COFFEE TABLES FOR MONTHS SAYS ARIE KOPELMAN CHANEL INC PRESIDENT THIS IS THE ULTIMATE COMMUNICATIONS PIECE A COSTEFFECTIVE WAY TO REACH CONSUMERS BY GIVING THEM A BEHINDTHESCENES LOOK AT CHANEL THE GLOSSY BOOK ALSO MAKES AN EFFORT TO DEVALUE THE CHEAP KNOCKOFFS OF CHANEL'S SIGNATURE HANDBAGS SCARVES AND SHOES OFTEN PRODUCED BY COUNTERFEITERS AND SOLD BY STREET VENDORS SEVERAL ARTICLES TOUT THE CRAFTSMANSHIP THAT GOES INTO MAKING AUTHENTIC CHANEL MERCHANDISE ONE FEATURE SHOWS THE 172 STEPS THAT GO INTO MAKING CHANEL'S FAMOUS QUILTED HANDBAGS WHICH SELL FOR ABOUT 900 BROOKS BROTHERS THE APPAREL RETAILER RETAINS WPP GROUP'S OGILVY & MATHER TO HANDLE THE ADVERTISING FOR MEN'S AND WOMEN'S CLOTHING AND ACCESSORIES BILLINGS WEREN'T DISCLOSED BUT LAST YEAR BROOKS BROTHERS SPENT 16 MILLION ON ADVERTISING THE CATEGORY ACCORDING TO LEADING NATIONAL ADVERTISERS BORDEN BORDEN INC BEGINS TESTING ITS LINE OF SALTY SNACKS IN MICHIGAN TODAY WITH A 30SECOND SPOT AIMED AT INFORMING CONSUMERS THAT THE COMPANY NOW DOES MORE THAN PRODUCE DAIRY PRODUCTS THE SPOT FROM WB DONER BEGINS WITH A FARMER ON TRACTOR WHO TELLS THE VIEWER OF SOMETHING NEW FROM BORDEN BUT WHICH ISN'T FOUND ON FARM THE SCENE SWITCHES TO PARTY ATTENDED BY HIP SWINGERS MUNCHING BORDEN'S POTATO CHIPS PRETZELS AND POPCORN NEW YORK TIMES DECORATING REMODELING MAGAZINE WILL CHANGE ITS NAME TO AMERICAN HOMESTYLE EFFECTIVE WITH THE NOVEMBER ISSUE PART OF THE NEW YORK TIMES CO WOMEN'S MAGAZINES GROUP THE MAGAZINE'S EDITORS TESTED THE AMERICAN HOMESTYLE LOGO FOR 18 MONTHS ON NEWSSTANDS AND SAW A CONSISTENT SALES LIFT OVER DECORATING REMODELING'S PERFORMANCE THE MAGAZINE'S ADVERTISING AND CIRCULATION LEVELS ARE BOTH ON THE RISE 9305030167 930503 INTERNATIONAL AS MEXICO PREPARES TV NETWORKS' SALE REVENUE IS DEBATED BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY WEEKS BEFORE MEXICO'S GOVERNMENT IS SET TO PRIVATIZE TWO STATE TELEVISION NETWORKS A BATTLE ALREADY IS BREWING BETWEEN POTENTIAL BUYERS AND THE COUNTRY'S LONG DOMINANT PRIVATESECTOR BROADCASTER GRUPO TELEVISA SA BY TELEVISA'S CALCULATIONS THE STATE NETWORKS NOW RECEIVE 20 OF ALL MEXICAN TELEVISION ADVERTISING REVENUES WHILE ATTRACTING ONLY 5 OF THE AUDIENCE THE NETWORKS' AD SALES ARE DISPROPORTIONATE TO THEIR RATINGS BECAUSE ADVERTISERS BUY AIR TIME TO WIN POLITICAL FAVOR TELEVISA SAYS WHEN THE GOVERNMENT SELLS OUT OF THE TV BUSINESS THE NEW OWNER IS GOING TO GET THE AMOUNT OF REVENUE THAT HE GETS SHARE OF AUDIENCE SAYS FERNANDO DIEZ BARROSO AZCARRAGA TELEVISA'S VICE CHAIRMAN THEN WE'RE GOING TO GET 15 MORE REVENUE WITH NO ADDITIONAL COST ANGRY GOVERNMENT OFFICIALS SAY TELEVISA'S REVENUE ESTIMATES ARE WRONG THE GOVERNMENT SAYS ITS NETWORKS GET ABOUT 8 OF TV REVENUES BUTTRESSING THAT ESTIMATE AC NIELSEN DE MEXICO PUTS THE GOVERNMENT SHARE AT ABOUT 7 EACH OF THE THREE MAJOR BIDDERS FOR THE STATE NETWORKS ALSO PUTS THE GOVERNMENT'S REVENUE SHARE IN SINGLE DIGITS TWENTY PERCENT IS ABSURDLY HIGH SAYS INDUSTRIALIST RICARDO SALINAS ONE OF THE BIDDERS TELEVISA WANTS TO IMPRESS ITS INVESTORS AND RAISE THE PRICE ITS NEW COMPETITOR PAYS FOR THE NETWORKS SO WHOSE NUMBERS ARE CORRECT WE'RE NOT BUYING ANYTHING AND WE'RE NOT SELLING ANYTHING SAYS MR DIEZ BARROSO OF TELEVISA SUGGESTING THAT THE GOVERNMENT AND BIDDERS HAVE A VESTED INTEREST IN LOWBALLING THE STATE NETWORKS' REVENUE SHARE HE SAYS TELEVISA'S ESTIMATES ARE BASED ON CONTACTS AT MAJOR ADVERTISERS BUT SOME BIG ADVERTISERS SAY THEY DIRECT ONLY MINIMAL SPENDING TO THE STATE NETWORKS PEPSICO INC'S LARGEST MEXICAN AFFILIATE SAYS THE GOVERNMENT GETS ABOUT 10 OF ITS TV AD BUDGET WHILE COCACOLA DE MEXICO ALLOCATES JUST 5 TO THE GOVERNMENT FOR US THE RELATION BETWEEN ADVERTISING SHARE AND RATINGS ISN'T NECESSARILY ONE TO ONE BUT IT'S VERY CLOSE SAYS JORGE GIGANTI CHIEF OF THE COKE UNIT GRUPO BIMBO WHICH CONTROLS 95 OF MEXICO'S BREAD MARKET DOESN'T SPEND A PESO ON THE GOVERNMENT NETWORKS SAYS MARKETING EXECUTIVE JOSE SRANCH AND IT NEVER HAS FELT PRESSURED TO DO SO THIS WAR OF NUMBERS IS LIKELY TO BE RESOLVED WHEN THE GOVERNMENT ISSUES A PROSPECTUS ON THE NETWORKS BEFORE THE EXPECTED JUNE SALE IF GOVERNMENT TV'S AD REVENUE SHARE IS CLOSER TO ITS RATINGS SHARE THAN TELEVISA CLAIMS ANY GAIN IN THE PRIVATIZED NETWORKS AUDIENCE COULD BE ACCOMPANIED BY A DECREASE IN TELEVISA'S AD REVENUE ANALYSTS SAY 9305030166 930503 TECHNOLOGY INFORMATION AGE GET READY FOR SMART CARDS' IN HEALTH CARE BY WILLIAM M BULKELEY MICHAEL KAYE A SURGEON IN STILLWATER MINN USED TO GO CRAZY TRYING TO ASSEMBLE COMPLETE RECORDS ON HIS HEART AND LUNG TRANSPLANT PATIENTS BUT SIX MONTHS AGO HE STARTED EQUIPPING PATIENTS WITH FREE OPTICAL CARDS THAT HOLD THEIR ENTIRE MEDICAL HISTORIES INCLUDING ANGIOGRAMS NOW WHEN A PATIENT SEES DR KAYE FOR A FOLLOWUP INDIVIDUALS CAN GENERATE THEIR OWN CHARTS A GREAT DEAL OF TIME AND MONEY CAN BE SAVED BY AVOIDING THE DUPLICATION OF TESTS SAYS DR KAYE WHO HELPED DEVELOP THE SYSTEM WITH SUMMIT MEDICAL SYSTEMS THAT USED EQUIPMENT DONATED BY CANON INC DR KAYE'S SYSTEM MAY PRESAGE THE KEY ROLE SMART CARDS WILL PLAY UNDER THE NATIONAL HEALTH CARE SYSTEM ENVISIONED BY THE CLINTON ADMINISTRATION DURING THE CAMPAIGN CANDIDATE CLINTON SAID EVERYONE WILL CARRY A SMART CARD ENCODED WITH HIS OR HER PERSONAL MEDICAL INFORMATION SUCH A CARD COULD AUTHORIZE PAYMENTS AND HOLD MEDICAL HISTORIES CONTRIBUTING TO FAIRNESS EFFICIENCY AND QUALITY IN HEALTH CARE BUT TO SOME PEOPLE THIS VISION OF THE FUTURE LOOKS LIKE A NIGHTMARE A NATIONAL IDENTIFICATION CARD THAT HOLDS YOUR KEY PERSONAL INFORMATION MOREOVER CARDHOLDERS MIGHT NOT WANT ANY MEDICAL STAFFER TO SEE ALL OF THEIR MEDICAL HISTORY AN AIDS PATIENT MIGHT FEAR THAT A DENTAL ASSISTANT WHO SAW THE RECORD MIGHT REFUSE TO HELP IN ORAL SURGERY AN EMERGENCY PATIENT MIGHTN'T WANT AN ADMISSIONS CLERK IN A CATHOLIC HOSPITAL TO SEE THAT SHE HAD HAD THREE ABORTIONS PRIVACY ADVOCATES WORRY THAT MEDICAL DATA ALSO COULD BE OBTAINED BY EMPLOYERS INSURERS GOVERNMENT WORKERS AND MARKETERS PRIVACY EXPERT MARY CULNAN ASSOCIATE PROFESSOR AT GEORGETOWN UNIVERSITY'S BUSINESS SCHOOL IS ESPECIALLY CONCERNED THAT IF THE CARD IS TIED TO THE INDIVIDUAL'S SOCIAL SECURITY NUMBER THE QUESTION IS CAN ALL THE MEDICAL INFORMATION BE MERGED WITH OTHER STUFF GROUPS INCLUDING COMPUTER PROFESSIONALS FOR SOCIAL RESPONSIBILITY AND THE AMERICAN CIVIL LIBERTIES UNION HAVE WRITTEN TO HILLARY RODHAM CLINTON URGING THAT PRIVACY RESTRICTIONS BE DESIGNED FOR CARDS PROPONENTS CLAIM PROTECTIONS CAN BE BUILT IN TO ENSURE PRIVACY RIGHT NOW HEALTH PLANNERS AROUND THE WORLD ARE CONSIDERING TWO DIFFERENT TYPES OF CARDS SMART AND OPTICAL CARDS SMART CARDS WITH A MICROPROCESSOR AND MEMORY CHIPS CURRENTLY HOLD THE EQUIVALENT OF 30 PAGES OF DATA NOT ENOUGH FOR AN XRAY FOR EXAMPLE THE CARDS COST 10 TO 50 THEY CAN BE SECURED SO THAT A USER HAS TO GIVE A PASSWORD A FINGERPRINT OR VOICE PRINT TO OPEN UP THE CONTENTS AND THE READER THAT DISPLAYS THE CONTENTS ON A SCREEN COSTS JUST 100 OPTICAL CARDS USE THE SAME TYPE OF TECHNOLOGY AS A COMPACT DISK FOR MUSIC OR DATA BUT LOOK LIKE SILVERY CREDIT CARDS AN OPTICAL CARD NOW HOLDS ABOUT 2000 PAGES OF DATA THERE'S ENOUGH SPACE TO HOLD A NUMBER OF DIGITAL IMAGES SUCH AS ULTRASOUND PICTURES OF A FETUS ELECTROCARDIOGRAMS OR EVEN A LOWRESOLUTION CHEST XRAY THE CARDS COST ABOUT 5 TO 20 EACH BUT THE SYSTEMS THAT DISPLAY THE INFORMATION AND RECORD NEW DATA ADDED BY A DOCTOR OR DRUGGIST COST 3000 A BIG EXPENSE WHEN SPREAD THROUGH THE MEDICAL SYSTEM STILL BECAUSE THEY CAN CRAM SO MUCH INFORMATION INTO SO LITTLE SPACE OPTICAL CARDS MAY BE ATTRACTIVE TO CONSUMERS DONALD SPECHT PRESIDENT OF ARGENTA SYSTEMS INC WHICH IS INSTALLING OPTICAL LIBRARYCARD SYSTEMS IN ONTARIO PREDICTS THAT MANY PATRONS WILL PAY 15 TO STORE A LOT OF PERSONAL INFORMATION ON THEIR LIBRARY CARDS SUCH AS IMAGES OF BIRTH CERTIFICATES INSURANCE POLICIES AND OTHER DOCUMENTS THE MOST POPULAR CARD TECHNOLOGY IN THE US IS THAT USED ON MOST CREDIT CARDS A MAGNETIC STRIPE THAT HOLDS JUST HALF A PAGE OF DATA IT COSTS LESS THAN 1 AND THE READER COSTS ABOUT 400 AMERICA HAS BEEN SLOW TO EMBRACE SMART CARDS BECAUSE OF THE INSTALLED BASE OF MAGNETIC STRIPE READERS AND AN ABUNDANCE OF PHONE LINES FOR RETAILERS TO USE TO CHECK ON CARDS IN MANY COUNTRIES WHERE PHONE LINES ARE SCARCE MERCHANTS PREFER SMART CARDS BECAUSE THEY CARRY THEIR OWN SPENDING LIMITS AND CAN BE SHOWN TO BE VALID WHEN THE OWNER KEYS IN A PERSONAL ID NUMBER STEPHAN SEIDMAN EDITOR OF SMART CARD MONTHLY A NEWSLETTER BASED IN MONTARA CALIF DOESN'T WORRY ABOUT UNWANTED READERS LOOKING AT DATA ON A CHIPBASED CARD BECAUSE NOBODY HAS EVER PENETRATED A SMART CARD OPTICALCARD ADVOCATES SAY THAT OPTICAL DATA COULD BE ENCRYPTED OR A CHIP COULD BE ADDED TO THE CARD TO CONTROL ACCESS IN FRANCE WHERE THE SMART CARD WAS INVENTED AND IS USED FOR PAY PHONES AND BANK CARDS MEDICAL INSURERS ARE EXPERIMENTING WITH A NUMBER OF DIFFERENT SMART CARDS FOR PATIENTS THE GOVERNMENT IS STARTING TO DISTRIBUTE PRACTITIONERS' CARDS TO 13 MILLION DOCTORS MEDICAL TECHNICIANS AND PHARMACISTS THAT WOULD ALLOW EACH TO READ ANY PATIENT'S MEDICAL CARDBUT ONLY SECTIONS APPLICABLE TO THE PROFESSIONALS SAYS ELSBETH MONOD OF THE FRENCH MINISTERE DES AFFAIRES SOCIALES WHO RECENTLY SPOKE AT THE CARDTECH INDUSTRY SHOW IN ARLINGTON VA PHARMACISTS FOR EXAMPLE COULD SEE CURRENT PRESCRIPTIONS BUT NOT DIAGNOSES CONGRESS'S OFFICE OF TECHNOLOGY ASSESSMENT IS CURRENTLY STUDYING THE FRENCH SYSTEM ONE WAY TO BALANCE EFFICIENCY AND PRIVACY IS TO REQUIRE PEOPLE TO CARRY A SMART CARD WITH ADMINISTRATIVE INFORMATION PATIENTS COULD THEN VOLUNTEER TO CARRY A MORE COMPREHENSIVE OPTICAL CARD ESPECIALLY IF THEY HAVE MEDICAL CONDITIONS SUCH AS PREGNANCY OR ORGAN TRANSPLANTS WHERE FOLLOWUP REPORTING IS VALUABLE RECENTLY GERMANY LAUNCHED A NATIONAL HEALTH CARD PROGRAM WITH ADMINISTRATIVE DATA ONLY IN THE FUTURE A SECOND CARD WITH HEALTH INFORMATION WILL BE ADDED AMERICAN TELEPHONE & TELEGRAPH CO'S SMART CARD UNIT IS DEMONSTRATING A MULTIPURPOSE CARD THAT COULD BE USED FOR VARIOUS FUNCTIONS INCLUDING AUTOMATICALLY FILLING IN MEDICAL INSURANCE FORMS THE PLAN IS FOR IT TO BE A RECORDS LOCATOR THAT COULD SPEEDDIAL INSURANCE CARRIERS OR OTHER DOCTORS TO AUTHORIZE PROCEDURES SAYS DIANE R WETHERINGTON PRESIDENT OF AT&T'S SMART CARDS SYSTEMS AND SOLUTIONS DIVISION YOU SHOULD ALWAYS BE ABLE TO SEE EVERYTHING THAT'S IN YOUR CARD AND NOBODY SHOULD BE FORCED TO CARRY INFORMATION HE DOESN'T WANT TO ADDS MS WETHERINGTON THE PENTAGON ALSO IS LOOKING AT THE BENEFITS OF PUTTING EXTENSIVE RECORDS ON SMART CARDS AS A REPLACEMENT FOR THE TRADITIONAL DOG TAGS BESIDES MEDICAL INFORMATION THEY COULD INCLUDE SERVICE AND FAMILY DATA BUT THAT POSES RISKS MICHAEL NOLL OF THE OFFICE OF THE SECRETARY OF DEFENSE SAYS TO SEND SOMETHING LIKE THAT WITH A PILOT WHO MAY HAVE TO BAIL OUT OVER BAGHDAD WOULD BE A MISTAKE 9305030165 930503 LEISURE & ARTS BOOKSHELF THE MOST FAMOUS JEW IN LITERATURE BY HILTON KRAMER OF THE MANY CHARACTERS CREATED BY SHAKESPEARE THAT HAVE WON A PERMANENT PLACE IN THE WORLD'S IMAGINATION NONE HAS PROVED TO BE MORE DURABLE OR MORE PROBLEMATIC THAN THE FIGURE OF SHYLOCK THE JEWISH MONEYLENDER IN THE MERCHANT OF VENICE IN THE EXTENT OF HIS FAME SHYLOCK BELONGS WITH DON QUIXOTE TARTUFFE SHERLOCK HOLMES ROBINSON CRUSOE WRITES JOHN GROSS IN SHYLOCK A LEGEND & ITS LEGACY SIMON & SCHUSTER 386 PAGES 25 HE IS A FAMILIAR FIGURE TO MILLIONS WHO HAVE NEVER READ THE MERCHANT OF VENICE' OR EVEN SEEN IT ACTED THERE ARE TIMES WHEN ONE MIGHT WISH IT WERE OTHERWISE BUT HE IS IMMORTAL WHAT SHYLOCK'S TROUBLED IMMORTALITY HAS CONSISTED OF FROM SHAKESPEARE'S PERIOD TO OUR OWN IS THE SUBJECT OF MR GROSS'S NEW BOOK IN ALMOST EVERY PHASE OF THIS PAINFUL HISTORY SHYLOCK HAS BEEN SUMMONED TO STAND TRIAL AND THE SAME QUESTION IS ALWAYS POSED HOW ARE WE TO JUDGE THE MOST FAMOUS JEW IN WORLD LITERATURE IS HE THE MONSTER OF REMORSELESS AVARICE AND REVENGE THAT MANY IN SHAKESPEARE'S TIME TOOK HIM TO BE A TIME AS MR GROSS REMINDS US WHEN JEWS WERE STILL FOR THE MOST PART BANISHED FROM ENGLAND ITSELF OR DOES SHYLOCK DESERVE OUR SYMPATHY AS A WRONGED OUTSIDER AS MANY LATER ACTORS AND CRITICS CAME TO BELIEVE IS HE TO BE CONSIDERED A COMIC VILLAIN A MAN WHOSE MISERABLE FATE IS SOMETHING TO BE LAUGHED AT OR DOES HIS SUFFERING PREFIGURE THAT OF SHAKESPEARE'S LATER TRAGIC HEROES WHY IS IT THAT SHYLOCK HARDLY SHAKESPEARE'S MOST EXALTED CHARACTER HAS COME TO MEAN SO MANY THINGS DURING THE 400 YEARS OF HIS EXISTENCE AND WHAT CAN HE MEAN TO US TODAY MR GROSS'S UNUSUAL INQUIRY COMBINES THE DISCIPLINES OF CULTURAL HISTORY AND LITERARY CRITICISM WITH A GIFT FOR UNBLINKING MORAL REFLECTION IN ITS COMMAND OF BOTH THEATRICAL TRADITION AND THE POLITICS OF ANTISEMITISM SHYLOCK HAS MUCH TO TELL US ABOUT THE WAY SHAKESPEARE'S MYTHICAL CREATION HAS ESTABLISHED ITSELF AS A PERENNIAL INDUCEMENT TO PREJUDICE YET THIS BOOK ALSO DOES MUCH TO ILLUMINATE THE EFFORT OF OUR LIBERAL CULTURE TO RESIST AND REVISE THE WORST IMPLICATIONS OF SHYLOCK'S CHARACTER WHILE MR GROSS NEVER REDUCES EITHER SHAKESPEARE OR SHYLOCK TO THE STATUS OF OUR CONTEMPORARY HIS BOOK IS AS MUCH A STUDY OF THE PRESENT AS IT IS A HISTORY OF THE PAST IN ITS ACCOUNT OF THE PAST MOREOVER IT IS BRILLIANT NARRATIVE HISTORY MR GROSS A FORMER EDITOR OF THE TIMES LITERARY SUPPLEMENT WHO IS NOW THE THEATER CRITIC OF THE LONDON SUNDAY TELEGRAPH IS A VERY ENGAGING WRITER HIS BOOK IS CROWDED WITH SURPRISING GLIMPSES INTO LITERARY AND THEATRICAL HISTORY HE TELLS US HOW CELEBRATED ACTORS FROM CHARLES MACKLIN IN THE 18TH CENTURY TO LAURENCE OLIVIER IN THE LATE 20TH CENTURY HAVE INTERPRETED THE ROLE OF SHYLOCK AND HE PINPOINTS THE PRECISE MOMENT WHEN THEATER FOLK CAME TO BELIEVE THAT SHAKESPEARE STOOD BADLY IN NEED OF JAZZING UP THIS OCCURRED IN THEODORE KOMISARJEVSKY'S PRODUCTION OF THE MERCHANT OF VENICE AT STRATFORDUPONAVON IN 1932 A STAGING WITH A POLITICAL AGENDA ITS NOVELTIES MR GROSS WRITES INCLUDED A PROLOGUE OF CAVORTING PIERROTS A PRINCE OF MOROCCO IN BLACKFACE AND A TRIAL PRESIDED OVER BY A DROWSY HALFSENILE DUKE WITH SENATORS POKING THEIR HEADS THROUGH HOLES IN A PAINTED CLOTH FOR KOMISARJEVSKY A RUSSIAN DIRECTOR WHO GREATLY ADMIRED MUSSOLINI LENIN STALIN AND HITLER SHAKESPEARE'S PLAY WAS SIMPLY THE STORY OF DISSIPATED YOUNG CAPITALISTS PITTED AGAINST AN ELIZABETHAN OGRE AS THIS AGENDA SUGGESTS HOWEVER IT WASN'T ONLY IN THE THEATER THAT SHYLOCK WAS MADE TO SERVE AS A SPUR TO VIOLENT PREJUDICE I VERILY BELIEVE SAYS A FRIENDLY ISRAELITE IN A WORK BY RICHARD CUMBERLAND A NOW FORGOTTEN 18THCENTURY WRITER THE ODIOUS CHARACTER OF SHYLOCK HAS BROUGHT LITTLE LESS PREJUDICE UPON US POOR SCATTERED SONS OF ABRAHAM THAN THE INQUISITION ITSELF AND THE OUTLOOK DID NOT EXACTLY IMPROVE IN THE 19TH AND 20TH CENTURIES WHEREAS WILLIAM HAZLITT WROTE AN ELOQUENT DEFENSE OF SHYLOCK IN KARL MARX'S CAPITAL AS MR GROSS WRITES SHYLOCK IS EVERYWHERE RUNNING BANKS FACTORIES LANDED ESTATES MAKING MONEY WHEREVER THERE IS MONEY TO BE MADE HE CAST AN EVEN LONGER AND DARKER SHADOW UPON THE 20TH CENTURY FOR ARTISTS AND IDEOLOGISTS OF THE POLITICAL EXTREMES BOTH LEFT AND RIGHT SHYLOCK BECAME A SYMBOL OF THE DESPISED INTERNATIONAL FINANCIER AND THUS THE PRINCIPAL VILLAIN OF MODERN HISTORY EVEN HITLER'S MASSACRE OF THE JEWS FAILED TO ERADICATE THIS USE OF SHYLOCK AS A SYMBOL OF EVIL THE QUESTION TOWARD WHICH MR GROSS'S BOOK INEXORABLY MOVES IS FINALLY FACED AT THE END ARE WE NOW OBLIGED TO CONSIGN SHAKESPEARE'S PLAY TO OBLIVION BECAUSE OF THE FOUL USES TO WHICH IT HAS BEEN PUT AS RECENTLY AS 1988 A THOUGHTFUL FRENCH SCHOLAR PIERRE SPRIET FLATLY DECLARED THAT IN THE POSTHITLER POSTHOLOCAUST ERA THE PLAY MUST BE ABANDONED MR GROSS REFUSES TO GO THAT FAR IT IS STILL A MASTERPIECE HE WRITES IN CONCLUSION BUT THERE IS A PERMANENT CHILL IN THE AIR EVEN IN THE GARDENS OF BELMONT IT IS A CHILL WE ARE MADE TO FEEL ON EVERY PAGE OF THIS BRILLIANT AND AUDACIOUS BOOK MR KRAMER IS EDITOR OF THE NEW CRITERION 9305030164 930503 WHO'S NEWS BOWATER INC BOWATER INC DARIEN CONN PHILLIP A TEMPLE WAS NAMED VICE PRESIDENT OF HUMAN RESOURCES AND ADMINISTRATION FOR THIS PAPER AND PULP COMPANY MR TEMPLE 53 YEARS OLD WAS A VICE PRESIDENT AT CLARK/BARDES INC A HUMAN RESOURCES CONSULTING FIRM HE SUCCEEDS RONALD E GUSTAFSON 59 WHO WILL RETIRE WHEN BOWATER COMPLETES THE MOVE OF ITS CORPORATE OFFICE TO GREENVILLE SC THIS SUMMER 9305030163 930503 WHO'S NEWS MEDAPHIS CORP MEDAPHIS CORP ATLANTA MICHAEL R COTE 32 YEARS OLD WAS APPOINTED CHIEF FINANCIAL OFFICER AND SENIOR VICE PRESIDENT FINANCE AND ADMINISTRATION OF THIS PROVIDER OF BUSINESS MANAGEMENT SERVICES HE SUCCEEDS TIMOTHY J KILGALLON 33 WHO WAS NAMED EXECUTIVE VICE PRESIDENT OPERATIONS OF MEDAPHIS PHYSICIAN SERVICES CORP A UNIT THAT HANDLES ACCOUNTING PROCEDURES FOR DOCTORS MR COTE WAS VICE PRESIDENT AND CONTROLLER 9305030162 930503 FOREST PRODUCTS FIRMS GAS PRODUCERS IN CANADA POST PROFITS FOR FIRST QUARTER BY MARK HEINZL STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO CANADIAN CORPORATE PROFITS SHOWED CONTINUED IMPROVEMENT IN THE FIRST QUARTER BUT THE GAINS WERE LIMITED TO A FEW SECTORS OF THE ECONOMY FORESTPRODUCTS COMPANIES AND NATURAL GAS PRODUCERS BENEFITED FROM HIGHER PRODUCT PRICES WHILE MINING CONCERNS WERE HURT BY LOWER BASEMETALS PRICES A WALL STREET JOURNAL SURVEY OF 102 CANADIAN COMPANIES SHOWS A COMBINED PROFIT OF 839 MILLION CANADIAN DOLLARS US659 MILLION COMPARED WITH C492 MILLION IN THE FIRST QUARTER OF 1992 STILL 24 OF THE COMPANIES REPORTED FIRSTQUARTER LOSSES COMPARED WITH 34 COMPANIES A YEAR EARLIER WHILE THE REBOUND IN CANADIAN CORPORATE PROFITS HAS BEEN SLUGGISH AND HELD TO A FEW SECTORS THE PACE WILL ACCELERATE DURING THE YEAR SAID MICHAEL GREGORY AN ECONOMIST WITH WOOD GUNDY INC A SECURITIES DEALER IN TORONTO MR GREGORY EXPECTS CANADIAN CORPORATE PROFITS TO JUMP ABOUT 30 THIS YEAR A PROJECTED 38 INCREASE IN CANADA'S GROSS DOMESTIC PRODUCT THIS YEAR AND WIDESPREAD CORPORATE RESTRUCTURINGS HAVE SET THE STAGE FOR SIZABLE PROFIT GAINS MR GREGORY SAID ALL THE DISCIPLINE THAT HAS BEEN FORCED ON CANADIAN COMPANIES IS GOING TO PAY OFF HE SAID ALTHOUGH CANADA HAS LAGGED BEHIND THE US DURING THE ECONOMIC RECOVERY THE SURGING CANADIAN STOCK MARKET INDICATES THAT THE COUNTRY IS QUICKLY CLOSING THE GAP MR GREGORY SAID THE TORONTO STOCK EXCHANGE'S 300STOCK COMPOSITE INDEX HAS JUMPED ABOUT 14 SINCE THE START OF THIS YEAR WHILE THE DOW JONES INDUSTRIAL AVERAGE IS UP ONLY 4 HOWEVER WHILE BIDDING UP CANADIAN STOCK PRICES INVESTORS ARE LOOKING OVER THEIR SHOULDER FOR ANY SIGNS THAT THE RECOVERY COULD FALTER SAID IRWIN MICHAEL A MUTUAL FUND MANAGER WITH IA MICHAEL INVESTMENT COUNSEL LTD IN TORONTO CONSUMERS ARE STILL PUTTING OFF BIGTICKET PURCHASES AND COMPANIES ARE DRAGGING THEIR FEET A LITTLE ABOUT BOOSTING STAFF OR INVENTORIES MR MICHAEL SAID ANALYSTS EXPECT ONLY MODEST IMPROVEMENT THIS YEAR IN CANADA'S UNEMPLOYMENT RATE WHICH STOOD AT 11 IN MARCH TWELVE FORESTPRODUCTS COMPANIES SHOWED A MARKED IMPROVEMENT HELPED BY SURGING LUMBER PRICES THEIR COMBINED LOSS WAS C457 MILLION IN THE FIRST QUARTER COMPARED WITH C1812 MILLION A YEAR EARLIER CANFOR CORP TURNED IN A FIRSTQUARTER PROFIT OF C168 MILLION COMPARED WITH A LOSS OF C109 MILLION INTERNATIONAL FOREST PRODUCTS LTD REPORTED A PROFIT OF C18 MILLION COMPARED WITH A LOSS OF C32 MILLION THE OIL AND GAS SECTOR CONTINUED TO BENEFIT FROM RISING NATURALGAS PRICES PROFITS FOR SEVEN OIL AND GAS CONCERNS REACHED C1777 MILLION IN THE FIRST QUARTER UP 101 FROM THE FIRST QUARTER OF 1992 FIRSTQUARTER EARNINGS OF PANCANADIAN PETROLEUM LTD ALMOST TRIPLED TO C613 MILLION COMPARED WITH C205 MILLION IMPERIAL OIL LTD PRODUCED A FIRSTQUARTER PROFIT OF C73 MILLION COMPARED WITH C40 MILLION LAST YEAR WEAKER BASEMETAL PRICES CAUSED A SHARP DECLINE IN RESULTS FOR SEVEN MINING CONCERNS WHICH POSTED A COMBINED LOSS OF C691 MILLION COMPARED WITH A PROFIT OF C466 MILLION A YEAR EARLIER NORANDA INC LOST C31 MILLION IN THE FIRST QUARTER COMPARED WITH A PROFIT OF C170 MILLION IN 1992 LOWER ZINC PRICES HURT COMINCO LTD WHICH REPORTED A LOSS OF C368 MILLION COMPARED WITH A LOSS OF C49 MILLION A YEAR EARLIER PROFITS FOR NINE GOLD PRODUCERS CLIMBED 79 TO C717 MILLION FOURTEEN INDUSTRIAL COMPANIES CONTINUED THEIR ERRATIC EARNINGS PERFORMANCE PRODUCING A COMBINED PROFIT OF C413 MILLION IN THE FIRST QUARTER DOWN 42 FROM A YEAR EARLIER AND DOWN 66 FROM THE FOURTH QUARTER SIX CONSUMER PRODUCTS CONCERNS POSTED A COMBINED PROFIT OF C969 MILLION A SHARP TURNAROUND FROM A COMBINED LOSS OF C451 MILLION A YEAR EARLIER THE IMPROVEMENT IS LARGELY DUE TO FORD MOTOR OF CANADA LTD WHICH REPORTED A FIRSTQUARTER PROFIT OF C145 MILLION COMPARED WITH A LOSS OF C1157 MILLION 9305030161 930503 WHO'S NEWS ROYCE LABORATORIES INC ROYCE LABORATORIES INC MIAMI GORDON BALTZER 33 YEARS OLD WAS APPOINTED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT OF FINANCE AND BUSINESS DEVELOPMENT OF THIS PHARMACEUTICALS MAKER HE PREVIOUSLY SERVED AS DIRECTOR OF FINANCIAL PLANNING FOR APOTEX INC A PHARMACEUTICAL PRODUCER IN TORONTO 9305030160 930503 GLOBAL VIEW ON STOP LIGHTS CHAOS THEORY AND RUSSIA BY GEORGE MELLOAN AT A BUSY FIVEWAY INTERSECTION AT PLACE FLAGEY IN BRUSSELS ONE MORNING LAST WEEK THE TRAFFIC SIGNALS WERE STILL DOING THEIR MIDNIGHT THING FLASHING NEITHER RED NOR GREEN BUT MERELY A CAUTIONARY YELLOW NAVIGATING THIS RUSHHOUR HAZARD HAD BECOME A TEST OF SKILL AND NERVE EVEN FOR BELGIUM'S NOTORIOUS HELL DRIVERS BUT AS I WATCHED THE EXCITING BALLET WITH MINICAR DRIVERS AND MOTORCYCLISTS DARTING THROUGH SMALL OPENINGS AND TRAM AND TRUCK PILOTS EMPLOYING THE AUTHORITY OF SIZE AND WEIGHT SOMETHING CAUGHT MY EYE THERE WAS NO BACKEDUP TRAFFIC CHAOS WAS CLEARING THE INTERSECTION FASTER THAN SIGNAL CONTROL DOES AT THIS POINT I WILL DEFER TO QUEUING THEORISTS AND TRAFFIC CONTROL MAVENS OR FOR THAT MATTER TO DRIVERS WHO PREFER ORDER TO CHAOS A BREED WHICH SEEMS RARE ON BELGIAN HIGHWAYS A PROBABILITY THEORIST MIGHT ALSO WANT TO TAKE INTO ACCOUNT THE EFFECTS ON EFFICIENCY OF THE HIGHER LIKELIHOOD OF ACCIDENTS BUT THE POINT OF THIS COLUMN IS NOT TO EXTOL ORDER WHICH HAS PLENTY OF ADMIRERS BUT TO SAY A FEW NICE WORDS ABOUT CHAOS WHICH HAS SO FEW THE FEW ARE A SIGNIFICANT FEW CHAOS THEORY HAS BECOME ONE OF THE HOTTEST FIELDS OF SCIENCE AND HAS BEGUN TO PENETRATE BROADER PUBLIC DISCUSSION ARCADIA A NEW TOM STOPPARD PLAY IN LONDON WEAVES CHAOS THEORY INTO THE PLOT AND DIALOGUE IN HIS POPULAR BOOK CHAOS OF A FEW YEARS BACK JAMES GLEICK ARGUED THAT THE SCIENCE OF CHAOS RANKS WITH THE THEORY OF RELATIVITY AND QUANTUM MECHANICS AMONG THE MOST IMPORTANT 20TH CENTURY THEORETICAL PURSUITS IT HAS PRODUCED HE WROTE THE GROWING UNDERSTANDING THROUGHOUT THE NATURAL SCIENCES AND THE SOCIAL SCIENCES THAT COMPLEXITY CHAOS AND CHANCE ARE A BUILTIN PART OF REALITY ONE FIELD OF SCIENCE THAT RESISTS THAT UNDERSTANDING IS ECONOMICS ECONOMISTS EARN VERY DECENT INCOMES AS FORTUNE TELLERS FOR POLITICIANS AND CORPORATE CEOS IT IS NOT REMUNERATIVE FOR THEM TO CONFESS TO THE PRESENCE OF COMPLEXITY CHAOS AND CHANCE IN A WORLD THEY ARE TRYING TO REDUCE TO ORDERLINESS AND PREDICTABILITY YET ALL ECONOMISTS KNOW THAT THE GUIDEPOSTS OF THEIR PROFESSION SUCH AS THE J CURVE THAT ONCE WAS THOUGHT TO DESCRIBE WHAT HAPPENS TO A TRADE BALANCE AFTER A CURRENCY DEVALUATION COME AND GO THEY GAIN CURRENCY BECOME DISCREDITED AND PASS INTO LIMBO ALTHOUGH NEVER ENTIRELY IF THEY OFFER SUPPORT FOR SOME WISHEDFOR POLICY IN THE END IT IS IMPOSSIBLE TO DENY THAT ECONOMICS AS WITH ALL BEHAVIORAL SCIENCES IS SUBJECT TO THE THREE CS THAT MR GLEICK DESCRIBES WHICH BRINGS US TO RUSSIA IN THEORY IT HAS RECENTLY PROGRESSED FROM EXTREME ORDER TO EXTREME CHAOS YET IT CAME AS A BIG SURPRISE TO A LOT OF WESTERN OBSERVERS LAST WEEK WHEN IT WAS LEARNED THAT A 52 MAJORITY OF THE 69 MILLION RUSSIANS WHO VOTED IN A REFERENDUM INDICATED THAT THEY PREFERRED THE CHAOS TO THE ORDER AT LEAST THAT INFERENCE CAN BE DRAWN FROM THEIR APPROVAL OF BORIS YELTSIN'S ECONOMIC REFORMS THE MAIN SOURCE OF TODAY'S CHAOS IT IS OF COURSE AN INSULT TO RUSSIANS TO IMPLY AS SOME WESTERN PUNDITS HAVE THAT THEY ARE DRONES WHO MERELY FOLLOW THE LEADER A BETTER EXPLANATION IS THAT MOST RUSSIANS ARE VERY HAPPY TO ESCAPE THE ORDER OF A PRISON WHICH IS WHAT THEY EXPERIENCED UNDER THE OLD REGIME MANY WESTERN ECONOMISTS OF COURSE PERSIST IN RECOMMENDING ECONOMIC MODELS FOR RUSSIA THERE IS NO DOUBT THAT MUCH OF THEIR ADVICE CAN BE HELPFUL BUT GETTING BACK TO CHAOS THEORY IT SHOULD ALWAYS BE REMEMBERED THAT THE ECONOMIC LIFE OF A NATION IS INFINITELY COMPLEX EVEN BEFORE COMMUNISM COLLAPSED RUSSIANS AND THE OTHER PEOPLES OF THE SOVIET UNION WERE FAR MORE IMPROVISATIONAL THAN THE WEST KNEW THEIR MANY SCHEMES SUCH AS TRADING GOODS FROM FACTORY TO FACTORY UNDER THE TABLE OR CHEATING ON COLLECTIVE FARM QUOTAS WERE ILLEGAL AND SUBJECT TO SEVERE PUNISHMENT AS ECONOMIC CRIMES BUT HAD THEY ADHERED SLAVISHLY TO ALL THE EDICTS OF THE PLANNERS IN MOSCOW THE SYSTEM WOULD HAVE COLLAPSED LONG BEFORE IT FINALLY DID WHAT IS HAPPENING NOW IN RUSSIA IS BASICALLY A CONTINUATION OF THE AD HOC ARRANGEMENTS THAT WERE FUNCTIONING EVEN UNDER COMMUNISM BUT NOW WITH CENTRAL AUTHORITY HAVING LARGELY COLLAPSED THESE TRANSACTIONS CAN BE CARRIED OUT IN THE OPEN PEOPLE NOW NOT ONLY SURVIVE BUT HAVE A CHANCE TO THRIVE MY COLLEAGUE DAVID BROOKS VISITED THE WESTERN RUSSIAN CITY OF SMOLENSK A COUPLE OF WEEKS AGO AND LIFE SEEMED FAIRLY NORMAL THE BAKERY WAS BAKING BREAD THE FLAX FACTORY WAS TURNING OUT LINEN THE STREETS WERE BEING TENDED AND THE LOCAL AUTHORITIES WERE ACTING LIKE MAYORS AND GOVERNORS DO EVERYWHERE ELSE MANAGERS AND WORKERS WERE TAKING CONTROL OF FACTORIES THAT HAD ONCE BEEN STATEOWNED AND WERE DEVELOPING A SENSE OF OWNERSHIP INFLATION IS CERTAINLY A PROBLEM BUT ITS ACTUAL EFFECTS ON THE GROUND ARE OFTEN EXAGGERATED BY VALUING THE RUBLE IN DOLLAR TERMS RATHER THAN IN TERMS OF THE GOODS RUSSIANS NORMALLY BUY IN SHORT RUSSIANS ARE WEAVING THEIR WAY THROUGH THEIR BIG UNCONTROLLED HISTORICAL INTERSECTION NONE OF THIS IS TO SAY THAT RUSSIANS SHOULD BE CONTENT WITH CHAOS THE ORDER THEY NEED AND CLEARLY WOULD LIKE TO HAVE IS A DIFFERENT KIND OF ORDER FROM THE COMMAND ECONOMY THEY HAVE EXPERIENCED IN THE PAST WHAT THEY NEED AND WHAT WILL ALLOW THEM TO THRIVE IS THE ORDER THAT COMES FROM LAWS THAT PROTECT THEM AND THEIR PROPERTY FROM THE ARBITRARY USE OF POLITICAL AUTHORITY THAT HAS SO TERRIBLY PLAGUED THEM IN THE PAST THIS CLEARLY IS WHAT BORIS YELTSIN IS TRYING TO GIVE THEM AS HE FIGHTS WITH HOLDOVER COMMUNISTS TO INSTALL A NEW RUSSIAN CONSTITUTION JUST BEFORE THE REFERENDUM OF A WEEK AGO SUNDAY PRESIDENT YELTSIN TOLD THE RUSSIAN PEOPLE THAT A VOTE FOR HIM WOULD IN EFFECT BE A VOTE FOR THE NEW CONSTITUTION THAT NO DOUBT CONTRIBUTED TO THE STRONG VOTE OF CONFIDENCE HE RECEIVED THE CONSTITUTION MAY HAVE FLAWS BUT ON THE WHOLE IT OFFERS RUSSIANS THE SAME RIGHTS THAT THE BASIC LAWS OF WESTERN DEMOCRATIC NATIONS OFFER THERE IS A GUARANTEE OF HUMAN RIGHTS THE RIGHT TO OWN AND TRANSFER PROPERTY AND THE RIGHT TO OWN AND TRANSFER LAND THERE WILL BE A POPULARLY ELECTED DUMA OR LOWER HOUSE AND A FEDERALIST UPPER HOUSE WITH ONE REPRESENTATIVE FROM EACH PROVINCE THE PRESIDENT WILL BE POPULARLY ELECTED IF MR YELTSIN CAN PUSH HIS CONSTITUTION THROUGH OVER THE OBJECTIONS OF DIEHARD COMMUNISTS RUSSIA WILL HAVE THE BEST OF TWO WORLDS IT WILL HAVE THE ORDER CONVEYED BY A RULE OF LAW AND ITS PEOPLE WILL HAVE THE FREEDOM TO ENGAGE IN THE COMPLEX AND CHAOTIC PROCESS OF BUILDING AN ECONOMY ORDER AND CHAOS ARE NOT NECESSARILY ANTAGONISTIC 9305030159 930503 AETNA POSTS STRONG EARNINGS INCREASE FOR FIRST QUARTER BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL HARTFORD CONN AETNA LIFE & CASUALTY CORP REFLECTING THE IMPACT OF LAST YEAR'S LAYOFFS REPORTED A SURPRISINGLY STRONG 40 INCREASE IN FIRSTQUARTER NET INCOME BUOYED BY THE SOLID PERFORMANCE AETNA ROSE 3125 TO 52875 ON THE NEW YORK STOCK EXCHANGE A 63 INCREASE THE IMPROVED EARNINGS SHOULDN'T HAVE COME AS A SURPRISE AETNA CHAIRMAN RONALD COMPTON TOLD ANALYSTS ON APRIL 1 THAT THE COMPANY EXPECTED TO SHOW STRONG EARNINGS IMPROVEMENT THIS YEAR ANALYSTS HOWEVER HAD TAKEN A WAITANDSEE APPROACH THEY HAD BEEN PROJECTING OPERATING EARNINGS IN THE FIRST QUARTER OF ABOUT 80 CENTS A SHARE INSTEAD AETNA REPORTED OPERATING EARNINGS OF 106 A SHARE UP FROM 72 CENTS A SHARE IN THE YEARAGO PERIOD AETNA'S NET INCOME ROSE TO 166 MILLION OR 151 A SHARE FROM 119 MILLION OR 107 A SHARE A YEAR EARLIER LAST YEAR AETNA ANNOUNCED PLANS TO LAY OFF 4800 PEOPLE OR 10 OF ITS WORK FORCE THE LAYOFFS WERE PROJECTED TO SAVE THE COMPANY 200 MILLION A YEAR BY 1994 BUT THE RESULTS ARE ALREADY BEING FELT AETNA'S OPERATING EXPENSES FELL 10 IN THE FIRST QUARTER THE EFFORTS OF THE REENGINEERING ARE PAYING OFF SAID ANALYST ALICE CORNISH OF NORTHINGTON PARTNERS IN AVON CONN THIS WAS A SURPRISINGLY GOOD QUARTER AETNA'S HEALTH AND LIFE INSURANCE BUSINESS AS WELL AS ITS PENSION BUSINESS SHOWED HIGHER PROFITS THE COMPANY'S PROPERTY AND CASUALTY BUSINESSES POSTED WEAKER EARNINGS MOSTLY BECAUSE OF THE MARCH BLIZZARD THAT SWEPT THE EAST COAST REVENUE FELL 49 TO 429 BILLION PROBLEMS IN AETNA'S 1747 BILLION MORTGAGE LOAN PORTFOLIO CONTINUED TO DRAG DOWN EARNINGS BUT ANALYSTS SAID THE SITUATION DID NOT APPEAR TO GET WORSE DURING THE PERIOD ALTHOUGH THE VOLUME OF DELINQUENT LOANS ROSE TO 809 OF THE PORTFOLIO IN THE QUARTER UP FROM 752 AT YEAR END THE VOLUME OF RESTRUCTURED LOANS FELL SLIGHTLY TO 803 FROM 853 WE REMAIN TROUBLED BY TRENDS IN THE OFFICE SECTOR AND DETERIORATION IN THE CHICAGO AND CALIFORNIA MARKETS MR COMPTON SAID 9305030158 930503 WHO'S NEWS BANK SOUTH CORP BANK SOUTH CORP ATLANTA BELINDA MORGAN 46 YEARS OLD WAS APPOINTED TO THE NEWLY CREATED POSITION OF EXECUTIVE VICE PRESIDENT AND OPERATIONS GROUP HEAD AT THIS BANKING COMPANY SHE MOST RECENTLY SERVED AS SENIOR VICE PRESIDENT AND HEAD OF OPERATIONS ALSO EIGHT EXECUTIVES WERE PROMOTED TO NEWLY CREATED SENIOR VICE PRESIDENT POSITIONS FROM VICE PRESIDENT MONICA BENNING 33 BLAKE CREWS 34 WILLIAM DANIEL 43 HAROLD H HOBGOOD 54 SALLY ANN MCNULTY 43 F DAVID SEMINO 49 PEGGY STRACKE 38 AND JOEL C TAYLOR JR 43 9305030157 930503 WHO'S NEWS OPTICAL DATA SYSTEMS INC OPTICAL DATA SYSTEMS INC RICHARDSON TEXAS J FRED BUCY 64 YEARS OLD WAS NAMED A DIRECTOR OF THE DESIGNER AND MAKER OF COMPUTER NETWORKING PRODUCTS INCREASING THE BOARD'S SIZE TO FIVE MEMBERS MR BUCY WAS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF TEXAS INSTRUMENTS INC UNTIL HIS RETIREMENT IN 1985 9305030156 930503 WHO'S NEWS PINKERTON'S INC PINKERTON'S INC VAN NUYS CALIF FORMER AMBASSADOR JOHN A GAVIN AND ROBERT HOWARD SMITH WERE NAMED TO THIS SECURITY AND INVESTIGATION CONCERN'S EXPANDED NINEMEMBER BOARD MR GAVIN WAS US AMBASSADOR TO MEXICO FROM 1981 TO 1986 AND WAS A VICE PRESIDENT OF ATLANTIC RICHFIELD CO OF LOS ANGELES MR SMITH WAS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF LOS ANGELESBASED SECURITY PACIFIC NATIONAL BANK 9305030155 930503 WHO'S NEWS FEDERAL HOME LOAN MORTGAGE CORP FEDERAL HOME LOAN MORTGAGE CORP MCLEAN VA THIS FEDERALLY CHARTERED BUYER AND SELLER OF HOME MORTGAGES PROMOTED MARGARET A COLON 35 YEARS OLD TO VICE PRESIDENT OF MULTIFAMILY OPERATIONS AND PORTFOLIO MANAGEMENT A NEW POST MS COLON'S PREVIOUS TITLE WAS DEPARTMENT HEAD FOR MULTIFAMILY OPERATIONS 9305030154 930503 WHO'S NEWS HONEYWELL INC HONEYWELL INC MINNEAPOLIS WILLIAM L TRUBECK CHIEF FINANCIAL OFFICER OF WHITE & CASE AN INTERNATIONAL LAW FIRM BASED IN NEW YORK WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS BUILDING AND AVIATION CONTROLS CONCERN EFFECTIVE JUNE 1 MR TRUBECK 46 YEARS OLD FILLS A POSITION THAT BECAME VACANT IN DECEMBER WHEN CHRISTOPHER J STEFFEN RESIGNED TO REEMERGE AS THE CHIEF FINANCIAL OFFICER OF EASTMAN KODAK CO MR STEFFEN RESIGNED FROM THE KODAK POST LAST WEEK BEFORE JOINING WHITE & CASE MR TRUBECK WAS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF NWA INC AND ITS NORTHWEST AIRLINES UNIT MR TRUBECK HELD SEVERAL POSITIONS AT ARMCO INC FROM 1981 TO 1989 INCLUDING CORPORATE VICE PRESIDENT AND TREASURER 9305030153 930503 SPANISH TRADE DEFICIT MADRID SPAIN'S MERCHANDISE TRADE DEFICIT ON A CUSTOMS BASIS SHRANK 42 TO 2138 BILLION PESETAS 185 BILLION IN MARCH FROM MARCH 1992 THE FINANCE MINISTRY SAID 9305030152 930503 WHO'S NEWS PRIVATE EXPORT FUNDING CORP PRIVATE EXPORT FUNDING CORP NEW YORK THE EXPORT FINANCE COMPANY JOINTLY OWNED BY A GROUP OF BANKS INDUSTRIAL AND FINANCIAL SERVICES COMPANIES SAID ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER FRANK W NEE RESIGNED TO PURSUE OTHER INTERESTS MR NEE HAD BEEN PRESIDENT SINCE 1984 DELCOUR S POTTER EXECUTIVE VICE PRESIDENT WILL BE ACTING CHIEF EXECUTIVE NEITHER MR NEE NOR COMPANY OFFICIALS COULD BE REACHED FOR COMMENT 9305030151 930503 WHO'S NEWS BALLY GAMING INTERNATIONAL INC BALLY GAMING INTERNATIONAL INC LAS VEGAS ALAN MAISS WILL RESIGN AS PRESIDENT AND CHIEF OPERATING OFFICER OF THE BALLY GAMING UNIT AND AS A DIRECTOR OF THE COMPANY HIS DUTIES WILL BE ASSUMED BY HANS KLOSS 51 YEARS OLD WHO LAST WEEK WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THE PARENT COMPANY A COMPANY STATEMENT SAID MR MAISS WOULD REMAIN WITH THE COMPANY FOCUSING ON WORLDWIDE GAMING MARKETS 9305030150 930503 WHO'S NEWS IPSCO INC IPSCO INC REGINA SASKATCHEWAN THOMAS E KIERANS WAS NAMED CHAIRMAN OF THIS STEELMAKER SUCCEEDING WILLIAM M ELLIOTT MR ELLIOTT 70 YEARS OLD RETIRED THE COMPANY SAID MR KIERANS IS PRESIDENT AND CHIEF EXECUTIVE OF THE CD HOWE INSTITUTE A TORONTOBASED NONPROFIT RESEARCH GROUP AND WILL RETAIN THAT POSITION IPSCO SAID 9305030149 930503 WHO'S NEWS AURORA ELECTRONICS INC AURORA ELECTRONICS INC IRVINE CALIF JOHN P GRAZER 39 YEARS OLD WAS APPOINTED CHIEF FINANCIAL OFFICER OF THIS INTEGRATED CIRCUITS RECYCLING AND RECOVERY CONCERN HE SUCCEEDS DAVID H LAHAR 34 WHO CONTINUES AS PRESIDENT MR GRAZER HAD BEEN VICE PRESIDENT FINANCE OF HOME FASHIONS INC 9305030148 930503 WORKPLACE USING NEW KINDS OF CORPORATE ALCHEMY SOME FIRMS TURN LESSER LIGHTS INTO STARS BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL WANTED BRIGHT BUT MERELY AVERAGE WORKERS WHO CAN BE TURNED INTO STAR PERFORMERS NOT JUST FOR AN HOUR OR A DAY BUT FOR GOOD MANY MANAGEMENT EXPERTS MAINTAIN THAT SUCH A TRANSFORMATION IS IMPOSSIBLE A COMPANY'S MOST PRODUCTIVE EMPLOYEES THEY SAY HAVE HIGH IQS TYPE A PERSONALITIES SUPERIOR WORK ETHICS AND OTHER ASSETS THAT CAN'T BE TAUGHT ACCORDINGLY COMPANIES TRY TO HIRE PEOPLE WITH THESE DESIRED QUALITIES INSTEAD OF ATTEMPTING TO TEACH NEW TRICKS TO THOSE ALREADY ON STAFF BUT A FEW COMPANIES ARE NOW ASSERTING THEY CAN DO THE IMPOSSIBLE AFTER ALL AS A NOTABLE EXAMPLE BELL LABORATORIES THE RESEARCH ARM OF AMERICAN TELEPHONE & TELEGRAPH CO SAYS THAT IN THE PAST SIX YEARS IT HAS TRAINED 248 ENGINEERS IN ITS SWITCHING SYSTEMS BUSINESS UNIT TO EMULATE THE WORK AND SOCIAL HABITS OF THE UNIT'S BEST PERFORMERS THE STRATEGIES USED BY THE SWITCHINGSYSTEMS UNIT WHICH WRITES SOFTWARE FOR ROUTING PHONE CALLS WERE HARDLY LOFTY INSTEAD THEY CALLED FOR THE ENGINEERS TO LEARN FROM EACH OTHER NO LESS SUCH MUNDANE THINGS AS HOW TO EMPTY THEIR IN BASKETS EFFICIENTLY HOW TO TAKE CONSTRUCTIVE CRITICISM AND HOW TO ASK FOR HELP INSTEAD OF WASTING TIME BY INSISTING ON SOLVING PROBLEMS THEMSELVES THE RESULT ACCORDING TO A STUDY TO BE PUBLISHED IN THE JULY ISSUE OF THE HARVARD BUSINESS REVIEW ENGINEERS WHO WENT THROUGH THE PROGRAM BOOSTED THEIR PRODUCTIVITY BY 10 IN EIGHT MONTHS SAVING BELL LABS THREE TIMES THE MONEY SPENT ON THE PROGRAM AFTER ONE YEAR AND MORE THAN SIX TIMES AFTER TWO YEARS PARADOXICALLY THE PROGRAM WAS SHELVED DURING COSTCUTTING LAST YEAR BUT THE ENGINEERS EXPECT IT MAY BEGIN AGAIN LATER THIS YEAR IT WAS A SUCCESSFUL PROGRAM SAYS A BELL LABS SPOKESMAN WHO DECLINES TO SPECULATE ON THE PROGRAM'S REINSTATEMENT THIS FALL DUPONT CO WILL BEGIN A SIMILAR PROGRAM FOR 500 OF ITS SAFETY HEALTH AND ENVIRONMENTALAFFAIRS WORKERS BASED ON DUPONT EMPLOYEES' IDEAS OF THE DIFFERENCES BETWEEN STARS AND AVERAGE PERFORMERS THE CHEMICAL GIANT IS COMPILING A LIST OF WHAT SUCCESS LOOKS LIKE SAYS JIM LEEMANN MANAGER OF SAFETY HEALTH AND ENVIRONMENTAL AFFAIRS FOR THE COMPANY'S SPECIALTYCHEMICALS DIVISION SPECIFICALLY THE COMPANY WILL ASK EMPLOYEES TO THINK OF PARTICULAR PEOPLE THEY HAVE WORKED WITH WHO ARE ABSOLUTE STELLAR PERFORMERS AND THEN TO THINK OF OTHER COWORKERS WHO ARE SIMPLY AVERAGE WE'RE GOING TO TRY AND DISCUSS WHAT ATTRIBUTES ARE DIFFERENT MR LEEMANN SAYS THEN MANAGERS CAN USE THAT INFORMATION TO DEVELOP EMPLOYEES EACH WORKER ALREADY HAS A CERTAIN NUMBER OF TOOLS IN THEIR TOOLBOX MR LEEMANN SAYS ADDING WE FIGURE OUT WHAT THEY DON'T HAVE THAT'S WHERE WE'LL FOCUS OUR ATTENTION THE TOOLS WILL INCLUDE PEOPLE SKILLS AS WELL AS TECHNICAL SKILLS IS THAT ENOUGH TO MAKE A STAR ABSOLUTELY MR LEEMANN SAYS MANAGEMENT EXPERTS THINK NOT IF YOU LOOK AT WHAT REALLY DRIVES PEOPLE TO SUCCEED IT'S ALMOST ALL ATTITUDES AND VALUES SAYS WARREN BENNIS A BUSINESS ADMINISTRATION PROFESSOR AT THE UNIVERSITY OF SOUTHERN CALIFORNIA FOR A MERE MIDDLE PERFORMER TO BECOME A STAR THE NEED THE DRIVE THE AMBITION HAS GOT TO BE THERE LUKE SANNA AN ORGANIZATIONALEFFECTIVENESS CONSULTANT AT HAY GROUP PHILADELPHIA AGREES THAT MOTIVATION TO ACHIEVE AND TO TAKE INITIATIVE IS EITHER THERE OR IT'S NOT TEACHING PRODUCTIVITY SKILLS IS IMPORTANT BECAUSE YOU CAN MAKE SOME PEOPLE BETTER HE SAYS BUT THE CHRYSLER MINIVAN IS NEVER GOING TO BE A FERRARI BELL LABS ENGINEERS CONCEDE THAT SOME PEOPLE SIMPLY DON'T WANT TO LEARN BUT THEY INSIST THAT ANYONE OPEN TO IMPROVEMENT CAN LEARN TO BE A STAR I WAS A LITTLE LEERY AT FIRST SAYS ENGINEER JERRY YINGLING BUT AFTER HIS FIRST CLASS HE SAW THAT ENGINEERS HAVE DIFFERENT WAYS OF SOLVING THE SAME PROBLEMS SOME MORE EFFICIENT THAN OTHERS AND THAT THEY CAN LEARN NEW METHODS FROM EACH OTHER ALONG WITH SHORTCUTS FOR WRITING COMPUTER PROGRAMS MR YINGLING LEARNED HOW TO EMPTY HIS IN BASKET WHEN YOU TAKE SOMETHING OUT OF THE BASKET HE WAS TOLD HANDLE IT ONCE INSTEAD OF PUTTING IT ASIDE TO LOOK AT IT LATER THAT WAY A WORKER CAN AVOID PILE MANAGEMENT MR YINGLING SAYS IDENTIFYING THE STARS AT BELL LABS WASN'T EASY INSTEAD OF RELYING ON MANAGERS FOR NOMINEES THE AUTHORS OF THE STUDY CARNEGIE MELLON UNIVERSITY GRADUATE BUSINESSSCHOOL PROFESSOR ROBERT KELLEY AND MINNEAPOLIS MANAGING CONSULTANT JANET CAPLAN SOLICITED NOMINEES FROM BOTH MANAGERS AND WORKERS THE GROUPS AGREED LESS THAN HALF THE TIME IT DIDN'T SURPRISE US SAYS MR KELLEY SINCE IN GENERAL WORKERS DON'T THINK PERFORMANCE EVALUATIONS ACCURATELY CAPTURE WHAT MATTERS THEN MR KELLEY AND MS CAPLAN STUDIED THE STARS AND AVERAGE PERFORMERS ASKING BOTH GROUPS THE SAME QUESTIONS ABOUT WHY THEY ARE GOOD AT WHAT THEY DO THE KEY DIFFERENCE WAS PRIORITIES THE STARS SAID THEIR MOST IMPORTANT SKILLS INCLUDED TECHNICAL COMPETENCE AND TAKING INITIATIVE LESS IMPORTANT WAS SHOW AND TELL SELLING IDEAS TO TOP MANAGEMENT BUT AVERAGE PERFORMERS SAID SHOW AND TELL WAS A CORE SKILL THE GROUPS ALSO DISAGREED ON DEFINITIONS ONE AVERAGE PERFORMER FOR INSTANCE SAID SHE TOOK INITIATIVE BY TAPING A MEETING INSTEAD OF TAKING NOTES SO SHE COULD PARTICIPATE INSTEAD OF PLAYING SECRETARY THE STARS SAID SHE WAS SIMPLY DOING HER JOB THEIR IDEA OF INITIATIVE WAS TO GO BEYOND JOB DUTIES BY FIXING A BUG IN SOMEONE ELSE'S PROGRAM OR BETTER YET DEVELOPING A NEW PRODUCT FOR A CUSTOMER TO CLARIFY INITIATIVE AND OTHER TERMS THE STAR ENGINEERS LISTED CONCRETE BEHAVIORS THAT GO WITH EACH THE RESULTING CHECKLISTS FORMED A CORE PART OF THE CLASSES ONE CHECKLIST FOR NETWORKING INCLUDES ITEMS SUCH AS I HAVE SOMEONE TO CALL FOR WHATEVER PROBLEM COMES UP AND I DO MY HOMEWORK BEFORE I GO TO ASK A QUESTION TEACHING THE CHECKLISTS PROVED MORE DIFFICULT AT FIRST THE CONSULTANTS HAD THEIR STUDENTS APPLY THE FINDINGS TO ABSTRACT CONCEPTS LIKE HOW TO SURVIVE IN THE DESERT WHEN THAT SEEMED TOO FAR OUT THE ENGINEERS FORMED A MOCK TASK FORCE ON A MORE RELEVANT ISSUE HOW TO IMPROVE THE COMPANY'S FLEXTIME SYSTEM BUT ONE WOMAN SAID SHE COULDN'T TAKE THAT SERIOUSLY EITHER BECAUSE IT WAS STILL JUST AN EXERCISE SO FOR REALISM TOP MANAGERS PROMISED THEY WOULD SERIOUSLY CONSIDER ANY POLICY THE CLASS DEVISED BELL LABS DID ACCEPT SOME OF THE CLASS'S RECOMMENDATIONS LATER CLASSES TACKLED ISSUES SUCH AS EVALUATING PERFORMANCE APPRAISALS TO TRY TO MAKE SURE THE TRAINING STUCK MR KELLEY AND MS CAPLAN MET WITH THEIR CLASSES FOR FOUR HOURS AT A TIME ONCE A WEEK FOR 10 WEEKS MORE INTENSIVE THAN MANY UNIVERSITY COURSES AFTER EACH SESSION ENGINEERS FILLED OUT EVALUATION SHEETS ON EVERYONE ELSE IN THE CLASS THE SHEETS HAD CHECKLISTS OF COMMENTS RANGING FROM GETS OTHER PEOPLE MOTIVATED AND INVOLVED TO GOES OFF ON TANGENTS OR BABBLES AND SEEMS CONDESCENDING TO SOFTEN THE CRITICISM THE CONSULTANTS URGED THE ENGINEERS TO LOOK AT IT AS A GIFT HELPFUL ADVICE THEY MIGHT NOT GET ANYWHERE ELSE MR MIRANDA GOT SOME SURPRISING INFORMATION HIMSELF AFTER SITTING SILENT THROUGH CLASSES HE GOT FEEDBACK SAYING HE WASN'T PARTICIPATING AND LOOKING BACK HE REALIZES THAT IF HE HAD BEEN MORE OUTGOING HE MIGHT HAVE MADE FRIENDS MORE QUICKLY IN HIS NEIGHBORHOOD RATHER THAN GOING OUTSIDE AND RAKING LEAVES AND WAITING FOR SOMEONE TO TALK TO ME HE SAYS I SHOULD HAVE GONE TO THE VILLAGE HALL AND INTRODUCED MYSELF 9305030147 930503 NEW CONSTRUCTION CONTRACTS FELL 3 IN MARCH PARTLY DUE TO HARSH WEATHER BY MILTON G ALLIMADI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HARSH WINTER WEATHER HELPED CAUSE A 3 DECLINE IN CONTRACTING FOR NEW CONSTRUCTION IN MARCH PARTICULARLY IN HOUSING SAID FW DODGE THE MCGRAWHILL INC FORECASTING UNIT THE DODGE INDEX OF CONSTRUCTION CONTRACTS WHICH USES 1987 AS A BASE YEAR OF 100 SLIPPED TO A SEASONALLY ADJUSTED 94 IT WAS THE SECOND CONSECUTIVE MONTH OF DECLINE DOWN FROM FEBRUARY'S 97 AND JANUARY'S 102 A REDUCED VOLUME OF HOUSING ACTIVITY LED TO MARCH'S OVERALL RETREAT REFLECTING THE BAD WEATHER DODGE SAID NONRESIDENTIAL BUILDING WAS 787 BILLION CLOSE TO FEBRUARY'S 795 BILLION NONBUILDING CONSTRUCTION PUBLIC WORKS AND UTILITIES SHOWED MODEST IMPROVEMENT DURING 1993'S OPENING QUARTER CONSTRUCTION CONTRACTING DWINDLED SLIGHTLY AVERAGING 2 LESS THAN ITS RESURGENT 1992 FOURTHQUARTER RATE CONTRACTING WAS STILL 3 ABOVE THE WEAKENED PACE REPORTED IN LAST YEAR'S SECOND AND THIRD QUARTERS GIVEN THE WEATHER CONDITIONS THE DECLINE IN MARCH CAME AS NO SURPRISE COMMENTED ROBERT A MURRAY VICE PRESIDENT OF ECONOMIC AFFAIRS FOR DODGE AT THE MOMENT THE BEST DESCRIPTION FOR THE CONSTRUCTION RECOVERY IS THAT IT IS STILL ON HOLD SINGLEFAMILY HOUSING HAVING LOST SOME MOMENTUM THIS YEAR REMAINS THE KEY TO THE INDUSTRY'S NEARTERM EXPANSION ITS PERFORMANCE DURING THE NEXT MONTH OR TWO UNDER MORE NORMAL CONDITIONS BEARS WATCHING SINCE A STRONGER RESPONSE TO THIS YEAR'S LOWER MORTGAGE RATES IS NEEDED TO RECHARGE THE RECOVERY RESIDENTIAL CONSTRUCTION DROPPED 8 IN MARCH THE NORTHEAST WITH A 24 PLUNGE IN THE VALUE OF RESIDENTIAL STARTS CLEARLY SHOWED THE IMPACT OF THE BLIZZARD OF 1993 OTHER REGIONS REVEALED MORE MODERATE DECLINES WITH FIXED MORTGAGE RATES NOW AT 75 THE LOWEST SINCE 1973 AT LEAST THE STAGE HAS BEEN SET FOR A HOUSING REBOUND THIS SPRING NOTED MR MURRAY NONRESIDENTIAL BUILDING IN MARCH EASED BACK 1 AS A RESULT OF OFFSETTING BEHAVIOR OF ITS VARIOUS CATEGORIES FOLLOWING A PARTICULARLY STRONG VOLUME IN FEBRUARY EDUCATIONAL BUILDING RETURNED TO A MORE SUSTAINABLE PACE THIS IN TURN LED TO A SLIGHT 3 DROP FOR THE INSTITUTIONAL SECTOR STORE CONSTRUCTION SHOWED STABILITY AT ITS HEIGHTENED LEVEL OF RECENT MONTHS WHILE OFFICE CONSTRUCTION REMAINED AT A VERY WEAK VOLUME ALTHOUGH STILL RELATIVELY DEPRESSED MANUFACTURING CONSTRUCTION REGISTERED A STRONG GAIN IN MARCH NONBUILDING CONSTRUCTION ADVANCED 4 OVER THE PREVIOUS MONTH HIGHWAYS AND WATER SUPPLY SYSTEMS PROVIDED MUCH OF THE UPWARD IMPETUS AS DID A REBOUND FOR UTILITY PROJECTS FROM AN UNUSUALLY WEAK FEBRUARY MR MURRAY NOTED TRANSPORTATIONRELATED PUBLIC WORKS REMAINS ONE SEGMENT OF THE CONSTRUCTION INDUSTRY EXPECTED TO ADVANCE THIS YEAR BUT ITS POTENTIAL FOR GROWTH WAS DIMINISHED RECENTLY WITH THE DEFEAT OF CLINTON'S ECONOMIC STIMULUS PACKAGE BY THE SENATE FILIBUSTER FOR THE FIRST QUARTER OF 1993 THE UNADJUSTED TOTAL VALUE OF CONSTRUCTION CONTRACTS WAS OFF 2 FROM THE 1992 PERIOD THREE REGIONS POSTED SUBSTANTIALLY LOWER ACTIVITY THE WEST DOWN 11 THE NORTH CENTRAL DOWN 10 AND THE NORTHEAST DOWN 9 IN CONTRAST THE SOUTH ATLANTIC AND SOUTH CENTRAL REGIONS HAD RESPECTIVE GAINS OF 13 AND 9 9305030146 930503 WHO'S NEWS CHEMICAL BANKING CORP CHEMICAL BANKING CORP NEW YORK DENIS J O'LEARY 36 YEARS OLD WAS NAMED CHIEF INFORMATION OFFICER IN CHARGE OF INFORMATION TECHNOLOGY FOR THIS BANK HOLDING COMPANY MR O'LEARY PREVIOUSLY WAS HEAD OF MERGER AND STRATEGIC PLANNING FOR THE COMPANY'S REGIONAL BANKING OPERATIONS HE SUCCEEDS BARBARA D CAPSALIS 50 WHO IS RESIGNING TO PURSUE A CAREER CHANGE 9305030145 930503 TRAVEL AIR MILES SHUTS US OPERATIONS OF BUYING PLAN A WALL STREET JOURNAL NEWS ROUNDUP A FLEDGLING FREQUENTBUYER PROGRAM THAT OFFERED FREE FLIGHTS TO PURCHASERS OF CONSUMER GOODS AND SERVICES HAS CRASH LANDED CAUSING HEADACHES FOR BLUECHIP COMPANIES TAKING PART IN THE PROGRAM AIR MILES INTERNATIONAL GROUP WHOSE PROGRAM NEVER CAUGHT ON DESPITE EARLY HYPE SAID IT IS HALTING ITS US OPERATIONS ALTHOUGH IT WILL CONTINUE ITS MORE SUCCESSFUL AIR MILES PROGRAM IN CANADA AND BRITAIN THE US PROGRAM BEGAN IN APRIL 1992 THE SUDDEN DEMISE OF THE US PROGRAM LEFT CORPORATE SPONSORS INCLUDING AMERICAN TELEPHONE & TELEGRAPH CO CITICORP PRODIGY SERVICES CORP GILLETTE CO HERTZ CORP AND PROCTER & GAMBLE CO SCRAMBLING TO FIGURE OUT HOW TO COMPENSATE CUSTOMERS WHO BOUGHT GOODS IN HOPES OF GETTING FREE TICKETS PRODIGY SERVICES AN ELECTRONICINFORMATION SERVICE IS A JOINT VENTURE OF INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO OFFICIALS AT LOYALTY MANAGEMENT GROUP INC A BOSTONBASED FIRM THAT RAN THE US OPERATION DIDN'T RETURN TELEPHONE CALLS BUT SAID IN A BRIEF NEWS RELEASE THAT CONSUMERS WOULD RECEIVE BENEFITS FROM A REDEMPTION TRUST SET UP WHEN THE PROGRAM BEGAN LAST YEAR THOSE BENEFITS WEREN'T IDENTIFIED UNDER THE PROGRAM CONSUMERS COULD EARN FREE AIR TRAVEL ON FOUR AIRLINES AMR CORP'S AMERICAN UAL CORP'S UNITED USAIR GROUP INC'S USAIR AND AIR CANADA BY BUYING GOODS AND ACCUMULATING MILES FROM PARTICIPATING SPONSORS FOR EXAMPLE A ONEYEAR SUBSCRIPTION TO TIME INC'S PEOPLE MAGAZINE WAS GOOD FOR 100 AIR MILES RENTING A CAR FROM HERTZ FOR A WEEKEND EARNED 25 MILES CONSUMERS COULD BEGIN GETTING FREE TICKETS AFTER ACCUMULATING 500 MILES BUT EVEN THAT WOULDN'T BE SUFFICIENT FOR A RELATIVELY SHORT NEW YORKBOSTON ROUNDTRIP TICKET TIME IS A UNIT OF TIME WARNER INC BUT THE PROGRAM DIDN'T CATCH ON BECAUSE IT WAS TOO DIFFICULT TO PARTICIPATE OBSERVERS SAY ONE CORPORATE SPONSOR SAID THAT 22 MILLION CONSUMERS SIGNED UP FOR THE PROGRAM BUT ONLY 500000 WERE ACTIVE USERS MANY CUSTOMERS FOUND THE PROGRAM BURDENSOME BECAUSE IN MANY CASES THEY HAD TO CLIP PROOFS OF PURCHASE AND MAIL THEM IN TO RECEIVE CREDIT FOR THOSE PURCHASES IT SHOULD HAVE BEEN THE GREEN STAMPS OF THE '90S BUT IT JUST WASN'T EASY ENOUGH SAID MARC YANOFSKY SENIOR VICE PRESIDENT OF MARKETING FOR HYATT HOTELS & RESORTS WHICH GAVE AIR MILES SUBSCRIBERS ONE MILE CREDIT FOR EVERY 5 SPENT AT HYATT HOTELS IN THE US AND CARIBBEAN MOREOVER CUSTOMERS OFTEN HAD TO MAKE MANY PURCHASES TO AMASS MILEAGE DAVID GITOW DIRECTOR OF NEW BUSINESS PROGRAMS AT TIME INC SAID THE COUNTRY'S GEOGRAPHICAL SIZE MADE IT VERY DIFFICULT TO ACCUMULATE SUFFICIENT MILES FOR A FREE TRIP ROBERT MCKINLEY PRESIDENT OF RAM RESEARCH CORP A CREDITCARD RESEARCH FIRM BASED IN FREDERICK MD ADDED YOU HAD TO BUY 30000 POUNDS OF DOG FOOD FOR AN UPGRADE AIR MILES WHICH BOUGHT THE DISCOUNTED AIR TICKETS FOR CONSUMERS WHO HAD EARNED SUFFICIENT POINTS FOR FREE TRAVEL APPARENTLY ALSO FELL SHORT OF THE NUMBER OF CORPORATE SPONSORS IT NEEDED TO BE VIABLE IN THE US THERE WERE ABOUT 40 CORPORATE SPONSORS EACH PAYING AIR MILES 1 MILLION TO 3 MILLION TO JOIN LOYALTY MANAGEMENT WHICH HAD SPENT 60 MILLION ON MARKETING AND PROMOTING THE PLAN NEEDED TO LAND MORE MAJOR SPONSORS SAID RANDY PETERSEN AN AIRLINE CONSULTANT AND OWNER OF FLIGHTPLAN INC A FREQUENTFLIER INFORMATION SERVICE THE SHUTDOWN OF THE AIR MILES PROGRAM WAS UNEXPECTED MANY SPONSORS LEARNED ABOUT IT FROM A TERSE ONEPAGE RELEASE ISSUED BY AIR MILES LAST WEEK OR WHEN THEY CALLED THE CUSTOMERSERVICE LINE AND GOT A RECORDED MESSAGE SAYING THE COMPANY WAS TEMPORARILY OUT OF SERVICE IT WAS A CLASSIC NO ONE IS HOME IN A BUSINESS CLOSEDOWN SCENARIO SAID HYATT'S MR YANOFSKY A SPOKESWOMAN FOR GILLETTE WHOSE STATIONERYPRODUCTS GROUP PARTICIPATED IN THE PROGRAM SAID WE ARE TRYING TO GET A HANDLE ON THE SITUATION AMONG OTHER THINGS SHE NOTED THAT GILLETTE HASN'T DECIDED WHAT IF ANYTHING TO DO ABOUT ITS PRODUCT PACKAGES STILL ON STORE SHELVES THAT MENTION THE PROGRAM AT&T WHICH OFFERED THE AIR MILES PLAN AS PART OF ITS UNIVERSAL CARD PACKAGE SAID IT HADN'T DECIDED HOW IT WOULD RESPOND TO THE ABRUPT SHUTDOWN AN AT&T SPOKESMAN SAID THE COMPANY WAS CONSIDERING SEVERAL OPTIONS TO ENSURE THAT ITS CUSTOMERS WERE TREATED FAIRLY A HERTZ SPOKESWOMAN SAID IT WILL OFFER VOUCHERS FOR DISCOUNTS ON CAR RENTALS TO ITS CUSTOMERS AFFECTED BY THE AIR MILES PROGRAM A SPOKESMAN FOR PRODIGY AN ONLINE COMPUTER SYSTEM SAID IT WILL OFFER SOME SORT OF CREDITS ADDING THAT NOT MANY CUSTOMERS WERE USING THE AIR MILES PROGRAM TIME SAID CUSTOMERS SADDLED WITH WORTHLESS BONUS MILES COULD CANCEL SUBSCRIPTIONS AND BE REIMBURSED FOR MAGAZINES THEY HAD YET TO RECEIVE OTHERS INCLUDING GTE MOBILE COMMUNICATIONS THE CELLULAR SUBSIDIARY OF GTE CORP AND CITICORP'S CITIBANK SAID THEY PLAN TO OFFER CREDIT TOWARD OTHER FREQUENTBUYER PLANS TO THEIR CUSTOMERS WHO WERE AIR MILES PARTICIPANTS WE WANT TO LIVE UP TO WHAT THEY SIGNED UP FOR THERE'S AN INHERENT OBLIGATION A CITIBANK SPOKESWOMAN SAID IT ISN'T KNOWN HOW MANY AIR MILES CONSUMERS HAD ACCUMULATED SUFFICIENT MILEAGE TO PURCHASE TICKETS BUT AMERICAN AIRLINES SAID IT WOULD CONTINUE TO HONOR TICKETS BOUGHT THROUGH AIR MILES WE WILL NOT LEAVE ANY AIR MILES CUSTOMER IN THE LURCH AN AMERICAN SPOKESMAN SAID A SPOKESMAN FOR UAL SAID ITS CARRIER ALSO WOULD HONOR AIR MILES TICKETS THEY'RE PAID FOR SO I DON'T SEE WHY WE WOULDN'T THE SPOKESMAN SAID USAIR GROUP HADN'T BEEN AWARE THAT THE SERVICE WAS SHUTTING DOWN UNTIL FRIDAY AND SAID IT DIDN'T HAVE ANY IMMEDIATE COMMENT AIR CANADA SAID IT WOULD CONTINUE TO DEAL WITH THE CANADIAN PROGRAM WHICH IS STILL RUNNING AN AMERICAN AIR SPOKESMAN SAID IT WAS UNFORTUNATE THE PROGRAM DIDN'T WORK WE THOUGHT IT HAD POTENTIAL HE SAID PARTICULARLY IN BRINGING PEOPLE WHO HADN'T TRAVELED MUCH INTO THE TRAVEL MARKET 9305030143 930503 WHO'S NEWS OCCIDENTAL PETROLEUM CORP OCCIDENTAL PETROLEUM CORP LOS ANGELES CATHARINE M DELACY WAS ELECTED VICE PRESIDENTHEALTH ENVIRONMENT AND SAFETY SUCCEEDING FRANK FRIEDMAN WHO RESIGNED HOWARD COLLINS WAS ELECTED VICE PRESIDENTPUBLIC RELATIONS SUCCEEDING FRANK ASHLEY WHO RESIGNED MS DELACY 35 YEARS OLD PREVIOUSLY WAS DIRECTOR OF ENVIRONMENTAL AFFAIRS AND TECHNICAL SUPPORT MR COLLINS 50 WAS DIRECTOR OF PUBLIC RELATIONS OCCIDENTAL HAS INTERESTS IN NATURAL RESOURCES CHEMICALS AND FOOD PROCESSING 9305030142 930503 NEWNESS RISKS OF DERIVATIVES TRIGGER PUBLIC SECURITIES COMMISSION'S SCRUTINY BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL WHITE SULPHUR SPRINGS WVA THE PUBLIC SECURITIES ASSOCIATION JOINED THE GROWING NUMBER OF REGULATORY AND TRADE ORGANIZATIONS THAT ARE EXAMINING THE NEED FOR CLOSER SUPERVISION OF FIRMS SELLING AND TRADING DERIVATIVE SECURITIES OVER THE COUNTER THE TERM DERIVATIVE IS APPLIED LOOSELY TO A WIDE ARRAY OF INSTRUMENTS MANY OF WHICH ARE BASED ON AN UNDERLYING BOND OR INDEX AND ARE MORE VOLATILE THAN ORDINARY SECURITIES THERE IS AN AWFUL NATURAL TENDENCY TO SEE SOMETHING NEW AND FEEL UNCOMFORTABLE SAID HEATHER L RUTH PRESIDENT OF THE PSA A TRADE GROUP COMPOSED OF FIRMS THAT UNDERWRITE AND TRADE TREASURY GOVERNMENT AGENCY AND MUNICIPAL BONDS A DERIVATIVE PRODUCT SOLD OVER THE COUNTER DOES NOT EQUAL BAD BUT IT EQUALS DIFFERENT SHE SAID THE PSA'S ANNUAL MEETING ENDED HERE THIS PAST WEEKEND ACCORDING TO SECURITIES AND EXCHANGE COMMISSIONER RICHARD ROBERTS A SPEAKER AT THE EVENT THERE IS NO NEED FOR REGULATORY OVERHAUL BUT THERE IS A NEED FOR SOME FINETUNING AND ADJUSTMENTS IN THE WAY THESE SECURITIES ARE SOLD THERE ARE SOME BAD APPLES THAT SHOULD BE ROOTED OUT OF THE MARKET HE SAID IN ORDER TO MAINTAIN ITS INTEGRITY MR ROBERTS ALSO ENCOURAGED PSA MEMBERS TO REVISE SALES PRACTICE RULES TO CONFORM TO THE DEVELOPMENT OF A DERIVATIVE PRODUCTS MARKET WHERE SECURITIES ARE BEING SOLD TO A WIDER INVESTOR BASE AND NOT JUST INSTITUTIONAL INVESTORS MR ROBERTS WAS CONCERNED THAT INDIVIDUAL INVESTORS BE ABLE TO UNDERSTAND ALL OF THE RISKS OF ANY NEW DERIVATIVE PRODUCT NEW RULES IF ANY ARE PROBABLY FAR OFF BUT TRADE ORGANIZATIONS LIKE THE PSA AREN'T WASTING ANY TIME PROPOSING THEIR OWN MARKET STUDIES ON A 55ITEM AGENDA FOR THE PSA BOARD MEETING LAST WEEKEND THE APPOINTMENT OF AN AD HOC COMMITTEE TO REVIEW THE DERIVATIVES MARKET WAS THE SECOND TOPIC FOR DISCUSSION THE AGENDA SAID ONE REASON TO FORM A COMMITTEE WAS THE PRESENT CLIMATE OF INTENSE FOCUS ON DERIVATIVE PRODUCTS THE COMMITTEE WAS CHARGED WITH DEFINING THE TERM DERIVATIVE FOR THE FIXEDINCOME MARKET COLLECTING DATA ON MARKET ACTIVITY AND MAKING RECOMMENDATIONS FOR ACTION IN ADVANCE OF ANY SPECIFIC REGULATORY ACTION STUDIES OF THE DERIVATIVES MARKET HAVE BEEN COMMISSIONED BY THE COMMODITY FUTURES TRADING COMMISSION AND THE GENERAL ACCOUNTING OFFICE AMONG OTHERS TOMORROW THE SECURITIES AND EXCHANGE COMMISSION IS TO DECIDE WHETHER TO SEEK COMMENTS ON CAPITAL REQUIREMENTS FOR SECURITIES FIRMS THAT DEAL IN DERIVATIVES FOR THE RECORD SOME PSA MEMBERS INVOLVED IN SELLING AND TRADING SAID THE SCRUTINY OF THESE FAIRLY NEW PRODUCTS MAY BE A GOOD THING THE SCRUTINY MAY HELP STANDARDIZE THE MARKET FOR THESE SECURITIES AND MAKE THEM EASIER TO TRADE BECAUSE OF GREATER DISCLOSURE THEY SAID BUT PRIVATELY SOME MEMBERS WORRIED THAT ALL THE STUDIES COULD LEAD TO SWEEPING REGULATORY CHANGES WE DON'T NEED NEW RULES SAID ONE EXECUTIVE IN CHARGE OF A WALL STREET DERIVATIVES OPERATION BUT WE NEED TO ENFORCE THE RULES WE ALREADY HAVE HOWEVER SEVERAL WALL STREET EXECUTIVES CONCEDED THE RECENT RUSH TO DUPLICATE AND MARKET THE LATEST DERIVATIVE PRODUCTS HAS RESULTED IN A SITUATION WHERE SOME ISSUERS THEMSELVES MAY NOT FULLY UNDERSTAND THE TYPES OF RISKS ENTAILED IN SUCH INVESTMENTS BECAUSE OF THEIR DESIGN A NUMBER OF THESE SECURITIES ARE MUCH MORE LIKELY TO SHARPLY LOSE VALUE BECAUSE OF INTEREST RATE OR MARKET RISKS RATHER THAN CREDIT RISKS WHILE AGENCIES PROVIDE CREDIT RATINGS THERE AREN'T ANY COMPREHENSIVE RATINGS OF THE INTEREST RATE OR MARKET RISKS OF MOST DERIVATIVES SEPARATELY IT WAS DISCLOSED DURING THE PSA MEETING THAT THE NATION'S 39 PRIMARY DEALERS IN GOVERNMENT SECURITIES ENJOYED SLIGHTLY BETTER PROFITS IN 1992 THAN THEY DID IN 1991 JOAN LOVETT A SENIOR VICE PRESIDENT AT THE FEDERAL RESERVE BANK OF NEW YORK REPORTED THE FIGURES TO A CLOSEDDOOR MEETING HERE SATURDAY OF DEALERSHIP REPRESENTATIVES PRIMARY DEALERS ARE A SELECT GROUP OF WALL STREET INVESTMENT FIRMS AND COMMERCIAL BANKS THAT TRADE GOVERNMENT SECURITIES WITH THE FEDERAL RESERVE AS IT EXECUTES MONETARY POLICY THESE DEALERS ALSO BUY AND SELL THE BULK OF GOVERNMENT AND AGENCY BILLS NOTES AND BONDS AT TREASURY AUCTIONS THEY PROFIT BY RESELLING THE SECURITIES TO INVESTORS AT A SLIGHT PREMIUM ACCORDING TO THE NEW YORK FED'S DATA PRETAX PROFITS FOR THE PRIMARY DEALERSHIPS EXCLUDING TRADING AND SALES OF MORTGAGEBACKED SECURITIES ROSE 200 MILLION IN 1992 TO 12 BILLION FOR ALL SECTORS INCLUDING MORTGAGEBACKED SECURITIES PROFITS ROSE 300 MILLION IN 1992 TO 23 BILLION OF THE 39 PRIMARY DEALERS ONLY FOUR DEALERS DIDN'T SHOW A PROFIT LAST YEAR ACCORDING TO THE NEW YORK FED THE BETTER PERFORMANCE IN 1992 CAME AFTER DECLINING PROFIT MARGINS AMONG OTHER FACTORS FORCED A NUMBER OF FIRMS TO RELINQUISH THEIR STATUS AS PRIMARY DEALERS OVER THE PAST FEW YEARS WHILE THE NUMBER OF PRIMARY DEALERS WAS UNCHANGED FROM 1991 THERE ARE FEWER THAN DURING THE LATE 1980S WHEN AS MANY AS 46 FIRMS WERE REGISTERED AS PRIMARY DEALERS ACCORDING TO THE NEW YORK FED MS LOVETT ALSO SAID THAT TRADING VOLUME IN THE GOVERNMENT SECURITIES MARKET PICKED UP IN 1992 THE AVERAGE DAILY VOLUME OF TRADING IN TREASURYS AND AGENCY SECURITIES EXCLUDING MORTGAGEBACKED SECURITIES GREW 18 LAST YEAR TO 161 BILLION WHILE TRADING IN MORTGAGEBACKED SECURITIES JUMPED 34 FOR AN AVERAGE DAILY VOLUME OF 17 BILLION THESE NUMBERS INCLUDE TRADING BETWEEN DEALERS AND PROPRIETARY TRADING BY DEALERS FOR THEIR OWN ACCOUNTS DEALER TRANSACTIONS WITH CUSTOMERS AVERAGED 62 BILLION FOR TREASURYS AND AGENCY SECURITIES AND 9 BILLION FOR MORTGAGEBACKEDSECURITIES SHE SAID THE TOP 10 PRIMARY DEALERS ACCOUNTED FOR 57 OF THE TRANSACTIONS WITH CUSTOMERS IN 1992 UP FROM 51 IN 1991 FIVE OF THE PRIMARY DEALERS EACH CORNERED OVER 5 OF THE TOTAL TRADING VOLUME WITH CUSTOMERS IN TREASURYS AND AGENCIES IN 1992 EXCLUDING MORTGAGEBACKED SECURITIES FOUR FIRMS EACH TOOK 3 TO 5 OF THAT BUSINESS AND 23 EACH ACCOUNTED FOR 1 TO 3 OF THE TRANSACTIONS THE REMAINING SEVEN PRIMARY DEALERS EACH HAD 1 OR LESS OF THE CUSTOMER VOLUME THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9305030141 930503 MARKETING & MEDIA GUILDS WON'T CONTEST CREDIT LYONNAIS PACT WITH CREATIVE ARTISTS HOLLYWOOD CAREFULLY BALANCING THE INTERESTS OF THE TWO MOST POWERFUL TALENT AGENCIES IN TOWN THREE HOLLYWOOD LABOR ORGANIZATIONS ISSUED A STATEMENT SAYING THEY WOULDN'T CONTEST A RECENT AGREEMENT FOR CREATIVE ARTISTS AGENCY TO ADVISE CREDIT LYONNAIS SA ON ITS ENTERTAINMENT INVESTMENTS THE GUILDS ALSO RELEASED A STATEMENT OF POLICY FROM CAA DELINEATING HOW THE RELATIONSHIP WITH THE STATEOWNED FRENCH BANK WOULDN'T EXTEND TO THE PARTICULARS OF MOVIEMAKING THE GUILDS THE SCREEN ACTORS GUILD THE DIRECTORS GUILD OF AMERICA AND THE WRITERS GUILD OF AMERICA WEST INDICATED THEY WOULD VIGILANTLY MONITOR THE SITUATION RIVAL AGENCY INTERNATIONAL CREATIVE MANAGEMENT OBJECTED TO THE DEAL SAYING CAA'S ROLE AS FINANCIAL ADVISER WOULD CREATE A CONFLICT OF INTEREST AND VIOLATE CONFIDENCES AFFECTING FREE COMPETITION BETWEEN AGENCIES ICM AND ITS CHAIRMAN JEFFREY BERG SAY THEIR ATTORNEYS HAVE CONTACTED THE US DEPARTMENT OF JUSTICE AND THE FEDERAL TRADE COMMISSION ABOUT POSSIBLE ANTITRUST OR RESTRAINT OF TRADE CONCERNS CAA HAS MAINTAINED IT NEVER INTENDED TO MEDDLE IN THE MOVIEMAKING OF SUCH STUDIOS AS METROGOLDWYNMAYER INC WHICH IS 985OWNED BY THE BANK ITS ROLE IS TO RESTORE THE STABILITY OF MGM WITH A VIEW TOWARD SELLING IT THE BANK IS REQUIRED BY LAW TO DIVEST BY 1996 CAA PROVIDED THE GUILDS WITH A COPY OF THE EMPLOYMENT CONTRACT OF ALAN LADD JR MGM'S STUDIO CHIEF OUTLINING MR LADD'S MOVIEMAKING AUTONOMY ANOTHER CONCERN WAS THAT THE STATEMENT OF POLICY BE WRITTEN IN SUCH A WAY AS NOT TO IMPINGE ON AGENCIES' RIGHTS TO CREATE PACKAGES IN WHICH AN AGENCY TAKES A STAKE IN AN ENTIRE PRODUCTION AS WELL AS THE INDIVIDUAL WRITERS ACTORS AND DIRECTOR MR BERG INDICATED ICM WOULD AWAIT POSSIBLE GOVERNMENT ACTION AND MAYBE PURSUE OTHER REMEDIES 9305030140 930503 UNREALIZED LOSSES ON SECURITIES POSTED BY JAPANESE HOUSES TOKYO FOUR JAPANESE TRADING HOUSES SEPARATELY DISCLOSED UNREALIZED LOSSES ON THEIR MARKETABLE SECURITIES PORTFOLIOS TRADING HOUSES AS THE MAJOR INVESTORS OF JAPANESE SPECIFIED MONEY TRUSTS AND FUND TRUSTS SAW UNREALIZED SECURITIES PROFIT DWINDLE AS A RESULT OF THE TOKYO STOCK MARKET'S WEAK OVERALL PERFORMANCE FOR THE YEAR ENDED MARCH 31 1993 THE COMPANIES MAKING DISCLOSURES WERE KANEMATSU CORP MITSUBISHI CORP NISSHO IWAI CORP AND TOMEN CORP MITSUBISHI WHICH ANNOUNCED A RESTRUCTURING PLAN FOR ITS SUBSIDIARY MC FINANCE LAST MONTH SAID PARENT COMPANY LATENT LOSSES ON SECURITIES TOTALED 4002 BILLION YEN 3605 MILLION AS OF MARCH 31 1993 THAT IS EQUIVALENT TO 055 OF TOTAL NET ASSETS OF 7237 TRILLION YEN AS OF MARCH 31 1992 MEASURED AGAINST PERFORMANCE THE TOTAL EQUALS 466 OF PRETAX PROFIT OF 8589 BILLION YEN IN THE YEAR ENDED MARCH 31 1992 OR 9942 OF NET PROFIT OF 4026 BILLION YEN NISSHO IWAI SAID ITS UNREALIZED LOSSES WERE 2445 BILLION YEN AS OF MARCH 31 1993 WHICH IS EQUAL TO 074 OF TOTAL NET ASSETS OF 3311 TRILLION YEN AS OF MARCH 31 1992 THE LATENT LOSSES COME TO 11558 OF PARENT PRETAX PROFIT OF 2115 BILLION YEN IN THE YEAR ENDED MARCH 31 1992 AND 26933 OF NET PROFIT OF 908 BILLION YEN NISSHO IWAI SAID IT HAD UNREALIZED SECURITIES GAINS TOTALING 13224 BILLION YEN OR NET PORTFOLIO VALUE OF 10779 BILLION YEN AS OF MARCH 31 1993 TOMEN'S LATENT LOSSES WERE 144 BILLION YEN WHILE UNREALIZED PROFIT TOTALED 3183 BILLION YEN FOR NET PORTFOLIO VALUE OF 1743 BILLION YEN THE TRADING HOUSE SAID THE UNREALIZED LOSSES ARE EQUAL TO 08 OF ITS 1907 TRILLION YEN OF TOTAL NET ASSETS AS OF MARCH 31 1992 AGAINST TOMEN'S PERFORMANCE THE LOSSES ARE 1114 OF PRETAX PROFIT OF 1293 BILLION YEN IN THE FISCAL YEAR ENDED MARCH 31 1992 AND 3181 OF NET PROFIT OF 453 BILLION YEN 9305030139 930503 FARM PRICES IN APRIL ROSE 21 FROM MARCH WASHINGTON FARM PRICES IN APRIL ROSE 21 FROM MARCH AND WERE 28 ABOVE THE YEAREARLIER LEVEL THE AGRICULTURE DEPARTMENT SAID COMPARED WITH MARCH HIGHER PRICES FOR LETTUCE ORANGES ONIONS AND TOMATOES MORE THAN OFFSET LOWER PRICES FOR TOBACCO CELERY HOGS AND CATTLE REDUCED SUPPLIES IN EARLY APRIL CAUSED PRICE INCREASES FOR LETTUCE ONIONS AND TOMATOES PRICE INCREASES FROM A YEAR EARLIER FOR CATTLE HOGS LETTUCE AND EGGS MORE THAN OFFSET DECLINES FOR ORANGES CORN WHEAT AND APPLES THE DEPARTMENT SAID 9305030138 930503 CANADIAN GDP ROSE 04 DURING FEBRUARY OTTAWA CANADA'S GROSS DOMESTIC PRODUCT RECORDED ANOTHER BROAD ADVANCE IN FEBRUARY RISING 04 FROM JANUARY STATISTICS CANADA A GOVERNMENT AGENCY SAID THE GAIN WAS LED BY THE MINING AND PETROLEUM SECTOR WHICH SHOWED A 21 INCREASE IN OUTPUT IN FEBRUARY PARTLY AS A RESULT OF STRONG NATURAL GAS EXPORTS TO THE US FINANCE MINISTER DON MAZANKOWSKI SAID THE FEBRUARY REPORT WAS VERY ENCOURAGING FOR THE DECEMBERFEBRUARY PERIOD HE SAID GDP THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED IN THE NATION ROSE AT AN ANNUAL RATE OF ABOUT 4 THE GOVERNMENT'S LATEST FORECAST PROJECTS GDP GROWTH THIS YEAR OF 29 BUT SOME FINANCIAL INSTITUTIONS ARE PREDICTING A STRONGER 1993 EXPANSION MR MAZANKOWSKI SAID THE GOVERNMENT DOESN'T INTEND TO RAISE ITS FORECAST IN RESPONSE TO THE LATEST DATA WE'D RATHER BE ON THE CONSERVATIVE SIDE HE SAID ALL MAJOR ECONOMIC SECTORS ARE CONTRIBUTING TO THE GROWTH WITH MANUFACTURING MINING AND BUSINESS SERVICES LEADING THE WAY SAID A BANK OF NOVA SCOTIA REPORT OUTPUT OF GOODS AND SERVICES BOTH ROSE 04 IN FEBRUARY FROM THE PREVIOUS MONTH 9305030137 930503 BETHLEHEM STEEL PLANS TO RAISE PRICES IN JULY ON ITS PLATE PRODUCTS BETHLEHEM PA BETHLEHEM STEEL CORP SAID IT WILL RAISE PRICES ON PLATE PRODUCTS ON JULY 4 THE BASE PRICE FOR CARBON AND HIGHSTRENGTH LOWALLOY STEEL PLATE WILL INCREASE 10 A TON RESULTING IN A NEW BASE PRICE OF 515 A TON THE PRICE OF ALLOY PLATE WILL INCREASE 20 A TON RESULTING IN NEW PRICES RANGING FROM ABOUT 800 TO 1500 A TON PRICES FOR STRIP MILL PLATES WILL RISE BY 20 A TON CONSISTENT WITH THE RECENTLY ANNOUNCED INCREASE ON HOTROLLED SHEETS THE ALLOY PLATE PRICE INCREASE FOLLOWS A SIMILAR MOVE LAST WEEK BY LUKENS INC HOWEVER BETHLEHEM IS THE FIRST PLATE MAKER THIS QUARTER TO BOOST THE PRICES OF CARBON AND HIGHSTRENGTH LOWALLOY STEEL PLATE AND STRIP MILL PLATE IN MARCH BETHLEHEM SAID IT WILL RAISE THE BASE PRICE OF ITS HOTROLLED COLDROLLED AND COATED SHEET STEEL BY 20 A TON EFFECTIVE JULY 4 THAT FOLLOWED SIMILAR MOVES BY OTHER MAJOR STEELMAKERS IN FEBRUARY STEELMAKERS INCLUDING BETHLEHEM RAISED PRICES ON STEEL PLATE EFFECTIVE APRIL 4 BETHLEHEM SAID THE LATEST PRICE INCREASES WILL HELP RECOVER ACTUAL MANUFACTURING COSTS THESE NEW PRICES REPRESENT ONLY A PARTIAL RESTORATION OF 199192 PLATE PRODUCT PRICES AND ARE STILL TYPICALLY LOWER THAN THOSE REALIZED IN 1980 9305030136 930503 ITALY'S NONEC TRADE DEFICIT MILAN ITALY'S FOREIGN TRADE DEFICIT WITH NONEUROPEAN COMMUNITY COUNTRIES NARROWED TO 550 BILLION LIRE 3719 MILLION IN THE FIRST THREE MONTHS OF 1993 FROM 3304 TRILLION LIRE A YEAR EARLIER THE STATE STATISTICAL OFFICE SAID IN MARCH THE NONEC TRADE ACCOUNT SWUNG TO A SURPLUS OF 59 BILLION LIRE FROM A DEFICIT OF 803 BILLION LIRE A YEAR EARLIER THE AGENCY SAID 9305030135 930503 SHELL OIL POSTS NET OF 239 MILLION FOR FIRST QUARTER BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON SHELL OIL CO CONTINUED TO EMERGE FROM ITS TWOYEAR RESTRUCTURING BY POSTING NET INCOME OF 239 MILLION COMPARED WITH A YEAREARLIER LOSS OF 452 MILLION AFTER THE CHARGE FOR A CHANGE IN METHODS OF ACCOUNTING FOR RETIREE HEALTH BENEFITS THE RESULTS INCLUDE GAINS TOTALING 51 MILLION FROM SUCH RESTRUCTURING MOVES AS ASSET SALES THE YEAREARLIER QUARTER INCLUDES A CHARGE OF 635 MILLION FOR THE ACCOUNTING CHANGE AND A GAIN OF 190 MILLION LARGELY FROM TAX BENEFITS EXCLUDING THE VARIOUS GAINS AND THE ACCOUNTING CHANGE SHELL POSTED FIRSTQUARTER OPERATING EARNINGS OF 188 MILLION COMPARED WITH A LOSS OF 7 MILLION A YEAR EARLIER SHELL THE SIXTH LARGEST OIL COMPANY IN THE US DOESN'T REPORT PERSHARE PROFIT FIGURES BECAUSE IT'S A SUBSIDIARY OF AND THE LARGEST SINGLE OPERATING COMPANY WITHIN NETHERLANDSBASED ROYAL DUTCH/SHELL GROUP SHELL HAS REPORTED WEAK RESULTS IN RECENT YEARS BUT UNDERTOOK A MASSIVE RESTRUCTURING IN 1991 THAT HAS INCLUDED ASSET SALES STRATEGIC CHANGES AND LAYOFFS SHELL HAS SET A TARGET OF CUTTING ITS COSTS BY 800 MILLION BY 1994 SO FAR IT HAS REDUCED ITS COST STRUCTURE BY AT LEAST 650 MILLION AT THE END OF 1992 SHELL SAID IT EMPLOYED SLIGHTLY MORE THAN 25000 WORKERS DOWN FROM 32000 IN EARLY 1991 THE COMPANY SAID IT DIDN'T YET HAVE FIGURES AVAILABLE ON HOW MANY JOBS MAY HAVE BEEN ELIMINATED IN THE FIRST QUARTER OF THIS YEAR ALTHOUGH THERE WEREN'T MAJOR REDUCTIONS THE BELTTIGHTENING SEEMS TO BE PAYING OFF ACCORDING TO FRANK RICHARDSON PRESIDENT THIS IS OUR HIGHEST NET INCOME FOR ANY FIRST QUARTER SINCE 1989 AND OUR BEST QUARTERLY PERFORMANCE SINCE MAJOR RESTRUCTURING EFFORTS BEGAN IN 1991 HE SAID SHELL'S QUARTERLY RESULTS WERE BOOSTED BY HIGHER PRICES FOR OIL AND NATURAL GAS THE COMPANY SAID THE AVERAGE PRICE IT RECEIVED FOR A BARREL OF OIL IN THE US ROSE 13 TO 1533 SHELL WOULDN'T DISCLOSE THE AVERAGE PRICE IT RECEIVED FOR NATURAL GAS BUT THE COMPANY SAID REVENUE FROM GAS SALES ROSE 31 TO 299 MILLION NATURAL GAS PRODUCTION REACHED ITS HIGHEST LEVEL IN ALMOST FOUR YEARS AVERAGING 15 MILLION CUBIC FEET A DAY DESPITE GENERALLY WEAK REFINING PROFITS IN THE OIL INDUSTRY SHELL'S OPERATION EARNED 88 MILLION IN THE FIRST QUARTER COMPARED WITH A LOSS OF 38 MILLION A YEAR AGO SHELL CREDITED LOWER OPERATING COSTS THAT HELPED IMPROVE PROFIT MARGINS EARNINGS FROM CHEMICAL PRODUCTS MORE THAN DOUBLED TO 80 MILLION IN THE FIRST QUARTER ROBIN SHOEMAKER AN ANALYST AT SHEARSON LEHMAN BROTHERS SAID THE CHEMICAL IMPROVEMENT IS SIGNIFICANT BECAUSE PRICES HAVE BEEN UNDER CONSIDERABLE MARGIN PRESSURE TOTAL REVENUE ROSE 25 TO 511 BILLION FROM 499 BILLION 9305030134 930503 SOUTHERN CALIFORNIA GAS CO LOS ANGELES SOUTHERN CALIFORNIA GAS CO SAID IT WILL REDEEM ALL 100 MILLION OF ITS 9 3/8 SERIES V FIRSTMORTGAGE BONDS OUTSTANDING DUE 1998 THE REDEMPTION WILL BE EFFECTIVE ON JUNE 15 AT 10245 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST SOUTHERN CALIFORNIA GAS A UNIT OF PACIFIC ENTERPRISES SAID IT MAKING THE MOVE TO REFUND HIGHCOUPON DEBT 9305030133 930503 SAN DIEGO G&E REDEMPTION SAN DIEGO SAN DIEGO GAS & ELECTRIC CO SAID IT WILL REDEEM ALL ITS 35 MILLION SERIES J 7 FIRST MORTGAGE BONDS OUTSTANDING DUE 1998 THE REDEMPTION WILL BE EFFECTIVE JUNE 1 AT 10121 OF THE PRINCIPAL AMOUNT OF THE BONDS PLUS ACCRUED INTEREST SAN DIEGO G&E SAID IT'S REDEEMING THE BONDS TO REDUCE EXPENSES 9305030131 930503 PRUDENTIAL UNIT ADOPTS POISON PILL' TO THWART BID FOR OIL GAS PARTNERSHIPS BY ROBERT J BRENNAN AND DAVE PETTIT STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC ADOPTED A POISON PILL FOR ITS OIL AND GAS PARTNERSHIPS AS PART OF AN EFFORT TO THWART THE TENDER OFFER FOR THE PARTNERSHIPS BY OKLAHOMA OILMAN GEORGE B KAISER THE ACTION CAME AS PRUDENTIAL HAS RECEIVED PRELIMINARY OFFERS FOR THE PARTNERSHIPS THAT VALUE THEM AT MORE THAN 400 MILLION ACCORDING TO PEOPLE FAMILIAR WITH THE OFFERS THAT WOULD BE SUBSTANTIALLY MORE THAN MR KAISER'S LATEST OFFER PRUDENTIAL SAID THE BOARD OF PRUDENTIALBACHE ENERGY PRODUCTION INC GENERAL PARTNER OF THE PRUDENTIALBACHE ENERGY INCOME PARTNERSHIPS ADOPTED THE POISON PILL TO PROTECT THE PARTNERSHIPS FROM THE KAISER OFFER WHICH IT HAS CALLED INADEQUATE THE POISON PILL OR EQUITY PROTECTION RIGHTS PLAN WOULD BE ACTIVATED IN ANY OF THE 35 PARTNERSHIPS IF AN ACQUIRER OBTAINS A STAKE OF 15 OR MORE IN THE PARTNERSHIP PRUDENTIAL A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA OF NEWARK NJ SAID THAT IN CONSULTATION WITH MERRILL LYNCH & CO IT DEVISED A VALUATION FOR THE PARTNERSHIPS CALLED AN EQUITY PROTECTION AMOUNT IF MORE THAN 15 OF THE INTERESTS OF A PARTICULAR PARTNERSHIP ARE ACQUIRED BY SOMEONE NOT APPROVED BY THE GENERAL PARTNER THEN THE PARTNERSHIP HOLDERS WOULD HAVE TO BE PAID THE DIFFERENCE BETWEEN THE EQUITY PROTECTION AMOUNT AND TENDER OFFER PRICE A PRUDENTIAL SPOKESMAN SAID MR KAISER'S TENDER OFFER SO FAR HAS YIELDED HIM ONLY ABOUT 04 OVERALL FOR THE PARTNERSHIP INTERESTS AND ABOUT 1 IS THE MOST HE HAS RECEIVED FROM HOLDERS IN A SINGLE PARTNERSHIP HE SAID THE POISON PILL WHICH GREATLY INCREASES THE COST OF THE PARTNERSHIPS TO A PROSPECTIVE BIDDER GIVES US TIME FOR THE PROCESS OF SOLICITING BIDS FOR THE PARTNERSHIPS IT ALSO PROTECTS THE HOLDERS FROM KAISER SINCE HIS OFFER DOESN'T REPRESENT FAIR VALUE FOR THE PARTNERSHIPS THE SPOKESMAN SAID DALE MCDOULETT AN EXECUTIVE AT GBK ACQUISITION CORP THE TULSA OKLA COMPANY MR KAISER FORMED TO PURSUE THE PRUDENTIAL PARTNERSHIPS COULDN'T BE REACHED FOR COMMENT ON PRUDENTIAL'S ACTION WHICH WAS TAKEN LATE FRIDAY THE KAISER OFFER OF 283 MILLION BEFORE PAYMENT OF SOME RECENT DISTRIBUTIONSISN'T DIRECTLY COMPARABLE TO THE OTHER OFFERS OF 400 MILLION KAISER IS INITIALLY SEEKING ONLY THE LIMITED PARTNERSHIP INTERESTS IN JUST 30 OF THE 35 PRUDENTIAL OIL AND GAS PARTNERSHIPS MR MCDOULETT MEANWHILE SAID HE BELIEVES THE KAISER OFFER IS CERTAINLY COMPETITIVE WITH ANY OFFERS IN THE 400 MILLION RANGE ALTHOUGH MR KAISER IS SEEKING JUST LIMITED PARTNERSHIP INTERESTS IN HIS TENDER MR MCDOULETT SAID THE GENERAL PARTNERS' HOLDINGS WOULD BE ACQUIRED LATER IF THE TENDERS ARE SUCCESSFUL MEANWHILE SEVERAL OTHER OIL COMPANIES THAT HAVE VIEWED CONFIDENTIAL DATA PRUDENTIAL HAS OFFERED ON THE PARTNERSHIPS ARE SAID TO HAVE EXPRESSED INTEREST IN ACQUIRING BOTH THE LIMITED PARTNER AND GENERAL PARTNER INTERESTS IN ALL 35 ENTITIES ACCORDING TO THE PEOPLE FAMILIAR WITH THE NEGOTIATIONS ABOUT FOUR INDEPENDENT OIL COMPANIES ARE BELIEVED TO HAVE EXPRESSED INTEREST IN AT LEAST SOME OF THE PARTNERSHIP PROPERTIES ONE INDIVIDUAL CLOSE TO THE NEGOTIATIONS SAYS PARKER & PARSLEY PETROLEUM CO OF MIDLAND TEXAS HAS TAKEN THE LEAD IN THE TALKS WITH AN OFFER IN EXCESS OF 400 MILLION PRUDENTIAL DECLINED TO COMMENT OFFICIALS OF PARKER & PARSLEY COULDN'T BE REACHED FOR COMMENT JP BRYAN CHAIRMAN OF TORCH ENERGY ADVISORS A UNIT OF TORCHMARK CORP OF BIRMINGHAM ALA LAST WEEK SAID TORCH IS AMONG THE BIDDERS HE WOULDN'T DISCLOSE THE VALUE OF THE BID BUT SAID TORCH WAS SEEKING ALL 35 PARTNERSHIPS PRUDENTIAL MADE PROPRIETARY DATA AVAILABLE TO POTENTIAL BIDDERS AFTER MR KAISER LAUNCHED IN MARCH HIS SURPRISE TENDER OFFER MR KAISER HOWEVER HASN'T SEEN THE DATA PRUDENTIAL HAS REFUSED TO SHARE THE INFORMATION UNLESS GBK SUSPENDS ITS TENDER PRUDENTIAL HAS BEEN ENTANGLED IN CONTROVERSY OVER THE ENERGY PARTNERSHIPS UNITHOLDERS HAVE SUED THE BIG NEW YORK SECURITIES FIRM COMPLAINING THAT THEIR INVESTMENTS HAVE TUMBLED IN VALUE A PROPOSED SETTLEMENT WITH MANY OF THE UNITHOLDERS HAS BEEN STALLED AFTER A FEDERAL JUDGE IN FEBRUARY SAID HE HAD SERIOUS RESERVATIONS ABOUT THE PRUDENTIAL OFFER 9305030130 930503 OFFSHORE PIPELINES STOCK OFFER HOUSTON OFFSHORE PIPELINES INC SAID IT COMPLETED AN OFFERING OF FOUR MILLION COMMON SHARES AT 14 A SHARE OFFSHORE WHICH OPERATES A MARINE CONSTRUCTION FLEET SAID PROCEEDS FROM THE OFFERING WILL BE USED TO REDUCE DEBT THE SALE OF THE SHARES 25 MILLION PRIMARY SHARES AND 15 MILLION SECONDARY SHARES WAS MANAGED BY LEHMAN BROTHERS AND OTHERS 9305030129 930503 JAPANESE STEEL EXPORTS UP TOKYO JAPAN'S STEEL EXPORTS FOR MARCH CLIMBED 16 FROM THE YEAREARLIER MONTH TO 1990000 METRIC TONS BRINGING THE CURRENT STRETCH OF YEARONYEAR GAINS TO 11 MONTHS THE JAPAN IRON AND STEEL FEDERATION SAID A METRIC TON IS 22046 POUNDS STEEL EXPORTS IN THE LATEST REPORTING MONTH SURGED 30 FROM FEBRUARY 9305030128 930503 UNION ELECTRIC PLANS TO REDEEM DEBT ISSUES TOTALING 142 MILLION ST LOUIS UNION ELECTRIC CO SAID IT PLANS TO REDEEM FOUR SERIES OF FIRST MORTGAGE BONDS TOTALING 142 MILLION JUNE 10 THE UTILITY SAID THEY INCLUDE REDEMPTION IS SUBJECT TO THE SALE OF 148 MILLION FIRST MORTGAGE BONDS PRICED THURSDAY 9305030127 930503 SERB LEADER'S SIGNING OF PACT TESTS CLINTON BOSNIAN'S MOVE COMPLICATES EFFORT TO BUILD SUPPORT FOR ARMED INTERVENTION BY WALL STREET JOURNAL REPORTERS CARLA ANNE ROBBINS IN LONDON AND THOMAS E RICKS IN WASHINGTON THE DECISION BY THE LEADER OF BOSNIA'S SERBS TO SIGN A PEACE AGREEMENT WILL PROVIDE AN EARLY TEST OF PRESIDENT CLINTON'S PLAN TO USE MILITARY FORCE IF NECESSARY AGAINST THE SERBS RADOVAN KARADZIC THE BOSNIAN SERB LEADER STILL MUST SUBMIT THE PEACE PLAN TO THE BOSNIAN SERBS' PARLIAMENT WHICH IS EXPECTED TO VOTE WEDNESDAY THE PARLIAMENT HAS CONSIDERED AND TWICE REJECTED THE AGREEMENT IN THE PAST WHILE MR CLINTON CALLED YESTERDAY'S MOVE BY MR KARADZIC A POSITIVE STEP HE STRESSED WE HAVE YET TO DETERMINE WHETHER THE SERBS ARE SERIOUS ABOUT PEACE WE WILL MAKE THAT JUDGMENT BASED UPON THEIR ACTIONS ON THE GROUND IN BOSNIA MR CLINTON COULD NOW FIND IT HARDER TO PERSUADE SKEPTICAL EUROPEAN ALLIES TO ACCEPT HIS MILITARY PLANS AND HE COULD ALSO HAVE TROUBLE AT HOME PERSUADING A FEARFUL US PUBLIC TO BACK MILITARY ACTION ON THE FIRST STOP OF A EUROPEAN TOUR TO RALLY SUPPORT FOR MR CLINTON'S PLAN SECRETARY OF STATE WARREN CHRISTOPHER APPARENTLY FAILED TO PERSUADE BRITISH PRIME MINISTER JOHN MAJOR TO DROP HIS OBJECTIONS TO LIFTING AN INTERNATIONAL ARMS EMBARGO ON BOSNIA'S MUSLIMLED GOVERNMENT YESTERDAY A STATEMENT ISSUED AFTER THEIR MEETINGS SAID ONLY THAT THE COUNTRIES WERE DEVELOPING A COMMON POSITION ON STRONGER MEASURES TO BE TAKEN AND THAT SEVERAL OPTIONS WERE UNDER CONSIDERATION INCLUDING MILITARY STEPS PRESIDENT CLINTON HAS YET TO ANNOUNCE WHAT MILITARY OPTIONS HE HAS SETTLED ON RULING OUT ONLY THE USE OF US GROUND TROOPS BUT THE PLAN IS BELIEVED TO INCLUDE BOTH LIFTING THE ARMS EMBARGO AND AIR STRIKES OR AT LEAST THE THREAT OF THEM TO DETER FURTHER SERBIAN OFFENSIVES WHILE THE MUSLIMS ARE ARMED AND TRAINED US OFFICIALS ARE CLEARLY HEARTENED BY THE SOFTER LINE SUDDENLY ESPOUSED BY THE SERBS WHICH THEY BELIEVE IS THE DIRECT RESULT OF TOUGH TALK FROM WASHINGTON THAT TALK AND THE MILITARY PLANNING BEHIND IT THEY CONTEND MUST CONTINUE UNTIL THE SERBS PROVE THEIR WORDS WITH DEEDS THAT VIEW WAS CHALLENGED BY INTERNATIONAL NEGOTIATOR LORD DAVID OWEN WHO IN AN APPEARANCE YESTERDAY ON ABCTV'S THIS WEEK WITH DAVID BRINKLEY SAID THAT THE RECENT THREATS OF MILITARY ACTION HAD HELPED TO CONCENTRATE MINDS BUT THAT IT NOW WAS TIME TO SET ASIDE TALK OF MILITARY OPTIONS MR CLINTON'S WILLINGNESS TO TAKE THE RISK OF BEING REBUFFED BY THE ALLIES IS A TESTIMONY TO HIS ABHORRENCE OF WHAT IS GOING IN BOSNIA AS WELL AS HIS FAITH IN HIS OWN POWERS OF PERSUASION AND LEADERSHIP BUT EVEN IN THE US CREATING A CONSENSUS WON'T BE EASY IN A WALL STREET JOURNAL/NBC POLL CONDUCTED IN LATE APRIL SOME 52 OF THOSE ASKED SAID THEY OPPOSED SENDING TROOPS TO HELP STOP THE CIVIL WAR IN THE FORMER YUGOSLAVIA ANY PLAN WILL HAVE TO BE CAREFULLY LIMITED AND WILL HAVE TO BE PERSUASIVELY PRESENTED IN ORDER TO GAIN THE SUPPORT OF BOTH THE AMERICAN PEOPLE AND CONGRESS SENATE MAJORITY LEADER GEORGE MITCHELL D MAINE SAID YESTERDAY IN AN INTERVIEW ON CBSTV'S FACE THE NATION THE PRESIDENT'S TOP MILITARY AND NATIONAL SECURITY ADVISERS BELIEVE THAT AIR STRIKES ALONE WON'T BE ENOUGH TO SHIFT THE MILITARY BALANCE AND LEAD TO A WAY OUT OF THE CONFLICT TO DO THAT THEY BELIEVE THE MUSLIMS MUST BE ALLOWED TO REARM UNDER THE COVER OF WESTERN AIR POWER AND TAKE OVER THEIR OWN DEFENSE BUT AMERICA'S CLOSEST ALLIES BRITAIN AND FRANCE PREFER AIR STRIKES AND OPPOSE LIFTING THE EMBARGO WHICH THEY INSIST WILL ONLY INCREASE THE KILLING AND JEOPARDIZE THEIR PEACEKEEPING TROOPS AND RUSSIAN PRESIDENT BORIS YELTSIN COULD HAVE SERIOUS POLITICAL PROBLEMS AT HOME IF HE ENDORSES MILITARY ACTION AGAINST HIS COUNTRY'S TRADITIONAL ALLY SERBIA US OFFICIALS WON'T SAY WHAT THEY WILL DO IF PRESIDENT CLINTON'S PLAN IS REBUFFED BUT THE US WILL BE UNABLE TO LIFT THE UNITED NATIONS ARMS EMBARGO UNILATERALLY AND US OFFICIALS ARE UNEASY ABOUT USING AIR STRIKES ALONE CONGRESS WOULD PREFER SIMPLY TO LIFT THE ARMS EMBARGO BUT IS HESITANT TO SEND US FLYERS INTO BATTLE AND AIR STRIKES WOULD ALMOST CERTAINLY TRIGGER THE WAR POWERS ACT WHICH REQUIRES APPROVAL FROM CONGRESS OR AN END TO THE FLIGHTS WITHIN 60 DAYS IN DISCUSSIONS AT THE WHITE HOUSE LAST WEEK THE ADMINISTRATION SPOKE OF CARRYING OUT BOMBING MISSIONS FOR ONLY ABOUT TWO MONTHS TO PROTECT MUSLIMS UNTIL THE ARMS BEGIN TO REACH THEM AS A DEMOCRAT MR CLINTON IS CLEARLY SENSITIVE TO THE MOOD IN CONGRESS AND RISK OF RESISTANCE FROM HIS OWN PARTY IF HE GOES AHEAD WHEN HOUSE SPEAKER THOMAS FOLEY LAST WEEK ASKED DEFENSE SECRETARY LES ASPIN TO COME TO THE CAPITOL FOR CONSULTATIONS LAWMAKERS WERE SURPRISED TO SEE SECRETARY CHRISTOPHER AND NATIONAL SECURITY ADVISER TONY LAKE COME ALONG IF THE US IS LUCKY THE BOSNIAN SERBS WILL RATIFY THE PEACE AGREEMENT WEDNESDAY AND SUSPEND THEIR ATTACKS ON MUSLIM CITIES HEADING OFF A SHOWDOWN WITH THE EUROPEANS AND MR YELTSIN ABOUT THE QUESTION OF MILITARY ACTION BUT EVEN IF THE PEACE AGREEMENT IS SIGNED THE US WILL HAVE TO DECIDE WHETHER TO SEND GROUND TROOPS TO ENFORCE IT PRESIDENT CLINTON HAS PROMISED TO COMMIT AMERICAN FORCES IF THE PEACE IS REAL REGARDLESS THE PEACE PLAN MIGHT BE RESISTED BY MANY BOSNIAN SERBS PARTICULARLY THOSE IN EASTERN BOSNIA WHO WOULD FALL BACK UNDER MUSLIM CONTROL UNDER THE VANCEOWEN PLAN RESIDENTS THERE ROUTINELY SCOFF AT MR KARADZIC LABELING HIM A SELLOUT FOR NEGOTIATING OVER TERRITORY THE SERBS CAPTURED IN FIERCE BATTLES IN WHICH MANY SERBS DIED BEFORE THE PEACE CONFERENCE THE BOSNIAN SERB LEADER POINTEDLY SAID HE WOULDN'T SIGN ANY AGREEMENT UNLESS THE VANCEOWEN MAP WAS REVISED PUTTING MORE TERRITORY UNDER SERB CONTROL AND CREATING A CORRIDOR ACROSS NORTHERN BOSNIA THAT WOULD PHYSICALLY LINK ALL SERB CONQUESTS IN BOSNIA AND CROATIA TO THE REPUBLIC OF SERBIA LORD OWEN SAID YESTERDAY THAT THE NEW AGREEMENT DIDN'T GIVE THE SERBS A CORRIDOR BUT INSTEAD WOULD CREATE A UN THROUGHWAY ACROSS MUSLIM AND CROAT AREAS THAT WOULD BE DEMILITARIZED AND OUT OF THE CONTROL OF LOCAL OFFICIALS EVEN AS THE PEACE CONFERENCE WAS BEING HAILED AS A SUCCESS BY THE INTERNATIONAL MEDIATORS FIGHTING CONTINUED TO RAGE THROUGHOUT BOSNIA SERBS AND MUSLIMS EXCHANGED MORTAR AND TANK FIRE ACROSS THE FRONT LINES NEAR THE TOWN OF SREBRENICA UN OFFICIALS ALSO SAID THERE WAS HEAVY SHELLING AND HIGH CASUALTIES AROUND GORAZDE ONE OF THE FEW REMAINING MUSLIM TOWNS IN THE SOUTHEASTERN PART OF THE COUNTRY IN BRCKO WHERE THE SERBS ARE TRYING TO WIDEN THEIR CORRIDOR IN THE NORTH FIGHTING FLARED FOR A THIRD STRAIGHT DAY AND THE SHELLING OF THE BOSNIAN CAPITAL OF SARAJEVO CONTINUED ROGER THUROW IN VIENNA CONTRIBUTED TO THIS ARTICLE 9305030126 930503 PRIMERICA COMPLETES 250 MILLION NOTE SALE FOR SHEARSON PURCHASE NEW YORK PRIMERICA CORP COMPLETING ANOTHER LEG IN ITS EFFORT TO RAISE 105 BILLION TO ACQUIRE THE SHEARSON BROKERAGE OPERATION OF AMERICAN EXPRESS CO RAISED 250 MILLION THROUGH THE SALE OF NOTES THE SALE BRINGS TO 550 MILLION THE AMOUNT PRIMERICA HAS RAISED SO FAR THE NOTES PAY 5 3/4 A YEAR IN INTEREST AND COME DUE APRIL 15 1998 PRIMERICA PREVIOUSLY RAISED 300 MILLION THROUGH THE SALE OF SEVEN MILLION SHARES OF STOCK TO OVERSEAS INVESTORS ANALYSTS DON'T EXPECT PRIMERICA TO HAVE DIFFICULTY RAISING THE REST OF THE MONEY THE ACQUISITION WHICH INCLUDES SHEARSON'S ASSETMANAGEMENT BUSINESS WAS ANNOUNCED MARCH 12 THE TAKEOVER IS EXPECTED TO BE COMPLETED IN THE THIRD QUARTER 9305030125 930503 HOSPITALITY FRANCHISE SYSTEMS PARSIPPANY NJ HOSPITALITY FRANCHISE SYSTEMS INC SAID IT WOULD RECORD AN 85 MILLION AFTERTAX CHARGE IN THE SECOND QUARTER AS PART OF ITS 125 MILLION ACQUISITION OF SUPER 8 MOTELS INC THE FRANCHISER OF HOTELS WHICH HAD ITS INITIAL PUBLIC OFFERING IN DECEMBER SAID THE CHARGE WOULD BE RELATED TO REFINANCING ITS 400 MILLION IN DEBT HOSPITALITY FRANCHISE HAS MORE THAN 3600 HOTELS IN ITS SYSTEM UNDER THE DAYS INN HOWARD JOHNSON RAMADA AND SUPER 8 NAMES 9305030124 930503 MAXUS'S GAS WELL IN INDONESIA DALLAS MAXUS ENERGY CORP SAID ITS DELINEATION WELL IN THE SOUTHEAST SUMATRA AREA OF INDONESIA TESTED 263 MILLION CUBIC FEET OF NATURAL GAS A DAY ON A 56/64INCH RESTRICTED OPENING MAXUS THE OPERATOR OWNS A 56 INTEREST IN THE WELL LOCATED ABOUT ONE MILE FROM THE FIELD DISCOVERY WELL WHICH FLOWED ABOUT 13 MILLION CUBIC FEET OF NATURAL GAS FURTHER DELINEATION WELLS ARE PLANNED SAID MAXUS 9305030123 930503 SPANISH REGIONS SPLIT ON FUTURE OF CENTRAL TAX POOR AREAS SEEK TO PRESERVE THEIR PIECE OF THE PIE OTHERS SEEK AUTOMONY BY CARLTA VITZTHUM STAFF REPORTER OF THE WALL STREET JOURNAL MADRID HOW TO FINANCE SPAIN'S 17 AUTONOMOUS REGIONS WITHOUT INCREASING THE INEQUALITIES AMONG RICH AND POOR REGIONS IS LIKELY TO BECOME A KEY ISSUE IN THE PRELUDE TO SPAIN'S JUNE 6 ELECTIONS WHILE WEALTHY REGIONS SUCH AS CATALONIA ARE CLAMORING FOR GREATER AUTONOMY IN TAX ADMINISTRATION POORER REGIONS LIKE EXTREMADURA AND ANDALUSIA ARE PRESSING THE CENTRAL GOVERNMENT TO PRESERVE THE CENTRALIZED FINANCING SYSTEM WHICH REDISTRIBUTES WEALTH SINCE 1980 WHEN THE LAW ON REGIONAL FINANCING WAS ENACTED THE CENTRAL GOVERNMENT HAS COLLECTED DIRECT TAXES AND VALUEADDED TAXES IN ALL THE REGIONS EXCEPT FOR THE BASQUE COUNTRY AND NAVARRE WHICH HAVE AUTONOMOUS FISCAL REGIMES THAT ENABLE THEM TO COLLECT AND ADMINISTER THEIR OWN TAX RECEIPTS ONCE DIRECT TAXES ARE COLLECTED IN THE OTHER 15 AREAS THE CENTRAL GOVERNMENT TRANSFERS MONEY TO EACH REGIONAL GOVERNMENT ACCORDING TO ITS NEEDS REGIONAL GOVERNMENTS IMPOSE TAXES ON INHERITANCE DONATIONS AND PROPERTY TRANSACTIONS AMONG OTHER THINGS DISSATISFIED JORDI PUJOL THE HEAD OF THE CATALAN GOVERNMENT SAYS HIS REGION PAYS OUT FAR MORE THAN IT RECEIVES WHICH MEANS IT'S SUBSIDIZING POORER REGIONS IN SPAIN HOWEVER THE CENTRAL GOVERNMENT CONTENDS THAT FIGURES DON'T REFLECT ITS FUNDING OF CATALONIA'S SOCIAL SECURITY AND UNEMPLOYMENT BENEFITS ALTHOUGH THE BASQUE COUNTRY ENJOYS SPECIAL TAX PRIVILEGES IT'S NOT SATISFIED EITHER RATHER IT'S KEEN TO CREATE ITS OWN CENTRAL BANK AND TO GRANT TAX EXEMPTIONS TO COMPANIES THAT SET UP SHOP WITHIN ITS BORDERS A PROPOSAL THAT HAS NEIGHBORING LA RIOJA FEARFUL THAT IT WILL LOSE INVESTMENTS TO THE BASQUES THE CATALAN AND THE BASQUE NATIONALIST GOVERNMENTS ARE LIKELY TO BECOME LEADING POWER BROKERS AFTER THE ELECTIONS WITH NEITHER THE CONSERVATIVE PARTIDO POPULAR NOR THE RULING SOCIALISTS HEADED FOR A CLEARCUT VICTORY AT THE POLLS REGIONAL PARTIES ARE VIEWED AS POTENTIAL COALITION PARTNERS BOTH OF THE MAIN PARTIES HAVE TIMIDLY SPOKEN OUT IN FAVOR OF CEDING MORE FISCAL RESPONSIBILITY TO THE AUTONOMOUS REGIONS RECENT POLLS INDICATE THAT EXTREMADURA AND ANDALUSIA ARE THE ONLY REGIONS IN SPAIN WHERE THE SOCIALISTS CAN BANK ON A CLEAR WIN LOCAL LEADERS THERE WILL PRESS TO PRESERVE THE FINANCING SYSTEM BECAUSE OF GENEROUS JOBLESS BENEFITS FOR RURAL WORKERS AND LARGE INFLOWS OF FUNDS IN ITS REPORT ON SPAIN RELEASED LAST WEEK THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT UNDERSCORED THE THE NEED FOR REGIONAL GOVERNMENTS TO CLAMP DOWN ON SPENDING THE PRESENT SLOWDOWN AND THE ASSOCIATED ADVERSE BUDGET TRENDS AS WELL AS THE REQUIREMENTS FOR THE SUCCESSFUL PARTICIPATION OF SPAIN IN THE NEXT PHASES OF EUROPEAN INTEGRATION CALL FOR FISCAL CONSOLIDATION AT THE NATIONAL LEVEL WHICH CAN BE ACHIEVED ONLY IF REGIONS ALSO BEAR PART OF THE BURDEN OF ADJUSTMENT THE OECD SAID ALTHOUGH SPAIN'S BUDGET DEFICIT ISN'T OVERWHELMING ECONOMISTS WARN THAT BETWEEN 1986 AND 1990 YEARS OF BONANZA THAT SHOULD HAVE BEEN USED TO WIPE THE SLATE CLEAN THE DEFICIT INSTEAD GREW NOW AS RECESSION SETS IN THE 1993 BUDGET THE FIRST THAT'S RESTRICTIVE IN 10 YEARS OF SOCIALIST RULE IS LIKELY TO FURTHER DAMP GROWTH THE GOVERNMENT SAYS THE BUDGET DEFICIT FELL IN 1992 TO 45 OF GDP FROM 49 IN 1991 BUT ECONOMISTS SAY THE 1992 FIGURE WAS CLOSER TO 5 OR EVEN HIGHER GDP IS A MEASURE OF THE VALUE OF A NATION'S TOTAL OUTPUT OF GOODS AND SERVICES MINUS INCOME FROM ABROAD MUCH OF THE GROWTH IN STATE SPENDING STEMS FROM SPAIN'S DECENTRALIZATION PROCESS THE 1978 CONSTITUTION CONVERTED THE COUNTRY INTO A QUASIFEDERAL STATE WHICH EMPOWERED REGIONAL GOVERNMENTS TO ADMINISTER THEIR OWN BASIC SERVICES SUCH AS EDUCATION AND HEALTH AS MORE AND MORE SERVICES WERE TRANSFERRED FROM THE CENTRAL TO REGIONAL GOVERNMENTS MANY JOBS AND SERVICES WERE DUPLICATED WHICH HELPED BOOST GOVERNMENT EMPLOYMENT BY 50 BETWEEN 1981 AND 1991 THE PARISBASED OECD SAYS REGIONAL GOVERNMENT EXPENDITURE ROSE FROM VIRTUALLY NOTHING IN 1980 TO 10 OF GDP IN 1991 RAISING TOTAL GOVERNMENT EXPENDITURE TO 44 OF GDP IN 1991 FROM 32 IN 1980 PART OF THE PROBLEM IS THAT REGIONAL GOVERNMENTS DON'T FACE THE UNPLEASANT JOB OF SQUEEZING MONEY FROM TAXPAYERS YET THEY CAN TAKE POLITICAL CREDIT FOR SPENDING AS A RESULT SPANIARDS DON'T ALWAYS HOLD LOCAL POLITICIANS ACCOUNTABLE FOR FISCAL OVERRUN AND ITS EFFECTS UNDER SPANISH LAW REGIONS ARE ALLOWED TO IMPOSE A SURCHARGE ON INCOME TAX AN OPTION THAT THE GOVERNMENT FAVORS BUT THAT NO LOCAL GOVERNMENT HAS EXERCISED ECONOMISTS SUCH AS NATIVIDAD FERNANDEZ A PROFESSOR OF PUBLIC FINANCE IN SANTANDER SUGGEST A COMPROMISE ON THE QUESTION OF REGIONALVSCENTRAL FUNDING THE CENTRAL GOVERNMENT WOULD TRANSFER A LUMP SUM TO REGIONAL GOVERNMENTS WHICH THEN WOULD COMPLEMENT A REDUCTION IN NATIONAL TAXES WITH THEIR OWN SURCHARGE 9305030122 930503 JAPANESE WHOLESALE PRICES DIP TOKYO JAPANESE WHOLESALE PRICES DURING THE SECOND 10 DAYS OF APRIL FELL 02 FROM THE PREVIOUS 10 DAYS AND WERE DOWN 27 FROM THE YEAREARLIER PERIOD THE BANK OF JAPAN REPORTED THE DOLLAR TRADED AT AN AVERAGE 11259 YEN DURING THE LATEST REPORTING PERIOD WITH THE YEN STRENGTHENING 12 FROM THE PREVIOUS 10 DAYS THE YEN APPRECIATED 16 FROM A YEAR EARLIER JAPAN'S WHOLESALE PRICES IN MARCH THE LATEST MONTH FOR WHICH DATA ARE AVAILABLE DECLINED 05 FROM FEBRUARY AND 23 FROM THE YEAREARLIER MONTH DOMESTIC WHOLESALE PRICES IN MARCH WERE DOWN 02 FROM THE PRECEDING MONTH AND 12 FROM A YEAR EARLIER 9305030121 930503 SPORT SUPPLY GROUP INC DALLAS SPORT SUPPLY GROUP INC SAID IT HIRED GENEVA CAPITAL MARKETS INC A BUSINESS BROKERAGE FIRM IN CLEARWATER FLA TO HELP IN ITS SEARCH FOR ACQUISITIONS THE DIRECT MARKETER OF SPORTS EQUIPMENT WHICH FAILED IN A BID TO ACQUIRE RIDDELL SPORTS INC LAST YEAR SAID IT INTENDS TO ADD AS MUCH AS 20 MILLION IN ANNUAL REVENUE THIS YEAR THROUGH ACQUISITIONS IN THE SPORTS AND LEISURE INDUSTRY IN 1992 SPORT SUPPLY GROUP HAD REVENUE OF 574 MILLION 9305030120 930503 TECHNOLOGY AMERICAN HOME PRODUCTS PHILADELPHIA WYETHAYERST LABORATORIES A UNIT OF AMERICAN HOME PRODUCTS CORP SAID ITS ANTIDEPRESSANT EFFEXOR WAS RECOMMENDED FOR APPROVAL BY A FOOD AND DRUG ADMINISTRATION COMMITTEE THE DRUG IS EXPECTED EVENTUALLY TO HAVE SALES OF 50 MILLION TO 100 MILLION A YEAR WORLDWIDE SAID HEMANT SHAH AN INDEPENDENT DRUGINDUSTRY ANALYST A WYETHAYERST SPOKESWOMAN DECLINED TO COMMENT ON THE PROJECTION 9305030119 930503 HAWAIIAN ELECTRIC REDEMPTION HONOLULU HAWAIIAN ELECTRIC CO SAID IT WILL REDEEM TWO SERIES OF FIRSTMORTGAGE BONDS TOTALING 30 MILLION ON JUNE 1 THE ELECTRIC UTILITY UNIT OF HAWAIIAN ELECTRIC INDUSTRIES INC SAID ITS 14 MILLION ISSUE OF SERIES R 82 BONDS DUE DEC 1 2001 WILL BE REDEEMED AT A PRICE OF 10226 OF THE PRINCIPAL AMOUNT THE 16 MILLION ISSUE OF SERIES T 835 BONDS DUE DEC 1 2003 WILL BE REDEEMED AT A PRICE OF 10288 OF THE PRINCIPAL AMOUNT 9305030118 930503 MAZDA SETS PICKUP TRUCK PRICES DETROIT MAZDA MOTOR OF AMERICA SAID ITS LARGER AND MORE POWERFUL 1994 BSERIES COMPACT PICKUP TRUCKS WHICH GO ON SALE THIS SUMMER WILL CARRY SUGGESTED RETAIL BASE PRICES RANGING FROM 8780 TO 18595 INITIALLY 11 MODELS WILL BE OFFERED INCLUDING A CHOICE OF THREE ENGINES THREE TRIM LEVELS TWO CAB CONFIGURATIONS TWO BED LENGTHS AND EITHER TWOWHEEL DRIVE OR FOURWHEEL DRIVE PRODUCTION OF THE 1994 BSERIES TRUCKS BEGAN IN APRIL IN EDISON NJ WHERE FORD MOTOR CO MANUFACTURES ITS SIMILAR RANGER PICKUP TRUCKS MAZDA MOTOR OF AMERICA IS A UNIT OF MAZDA MOTOR CORP WHICH IS 25OWNED BY FORD 9305030117 930503 FRENCH TRADE SURPLUS NARROWED PARIS FRANCE'S FOREIGN TRADE SURPLUS NARROWED TO 313 BILLION FRANCS 588 MILLION IN JANUARY FROM A REVISED 568 BILLION FRANCS IN DECEMBER ACCORDING TO SEASONALLY ADJUSTED PRELIMINARY DATA REPORTED BY THE NATIONAL CUSTOMS OFFICE PRIOR TO THE REVISION THE DECEMBER SURPLUS HAD BEEN ESTIMATED AT 539 BILLION FRANCS THE REDUCED JANUARY SURPLUS REFLECTED A DECLINE IN EXPORTS OF AIRBUS INDUSTRIE AIRCRAFT AS WELL AS LOWER AGRICULTURAL AND MILITARY SALES ABROAD UNADJUSTED JANUARY DATA SHOWED A SURPLUS OF 137 BILLION FRANCS AFTER A REVISED DECEMBER SURPLUS OF 432 BILLION FRANCS ON AN ADJUSTED BASIS EXPORTS IN JANUARY TOTALED 8975 BILLION FRANCS OFF 12 FROM 10246 BILLION FRANCS IN DECEMBER IMPORTS FELL 10 TO 8662 BILLION FRANCS FROM 9778 BILLION FRANCS IN UNADJUSTED TERMS EXPORTS SLIPPED TO 8353 BILLION FRANCS FROM 10179 BILLION FRANCS WHILE IMPORTS DROPPED TO 8216 BILLION FRANCS FROM 9747 BILLION FRANCS 9305030116 930503 DELVAL TO ASK FOR CONVERSION TO CORPORATION BY ANNE NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL BOGOTA NJ TROUBLED DELVAL FINANCIAL CORP SAID IT EXPECTS TO ASK ITS SHAREHOLDERS TO APPROVE A PLAN TO CONVERT TO A REGULAR CORPORATION FROM A REAL ESTATE INVESTMENT TRUST FOR TAX REASONS DELVAL ALSO SAID IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THAT IT HAS AGREED TO A PROPOSED SETTLEMENT WITH HOLDERS WHO SUED THE COMPANY CLAIMING THEY HAD ESTIMATED LOSSES OF 46 MILLION FROM TWO STOCK OFFERINGS IN 1989 AND 1990 DELVAL'S STOCK WHICH ONCE TRADED AT ABOUT 17 A SHARE COLLAPSED IN OCTOBER 1990 AFTER THE COMPANY ANNOUNCED A CASHFLOW CRISIS AND AMID CHARGES OF FRAUD BY TWO FORMER MANAGERS IT HAS BEEN TRADING ON THE NEW YORK STOCK EXCHANGE AT AROUND 150 AS A PUBLICLY TRADED REIT DELVAL RAISED FUNDS BY SELLING STOCK AND INVESTING THE PROCEEDS IN MORTGAGE LOANS TO AFFILIATES SECURED BY INCOMEPRODUCING PROPERTIES THE COMPANY ALSO INVESTED IN LOANS TO LIMITED PARTNERS AND AFFILIATES SECURED BY INTERESTS IN AFFILIATED PARTNERSHIPS A HOST OF CREDITORS SHAREHOLDERS AND LIMITED PARTNERS SUED THE COMPANY AFTER ITS STOCK COLLAPSED DELVAL REMAINS IN DEFAULT ON 314 MILLION IN PRINCIPAL AND INTEREST PAYMENTS TO CREDITORS DELVAL HOWEVER HAS RECENTLY VENTURED INTO TWO NEW BUSINESS AREAS WHICH WOULD PUT IT AT A SEVERE DISADVANTAGE IF IT WERE TO REMAIN A REIT THE COMPANY SAID IT PLANS TO BUY AND SELL REAL ESTATE AND HAS ENTERED INTO TWO SMALL PROJECTS IN NORTH CAROLINA HOWEVER REAL ESTATE PURCHASES AND SALES BY A REIT ARE PROHIBITED THE FILING SAID AND WOULD RESULT IN A 100 TAX ON THE PROFIT REAL ESTATE TRUSTS MANAGE PROPERTIES AND AREN'T TAXED IF THEY DISTRIBUTE AT LEAST 90 OF THEIR NET INCOME TO SHAREHOLDERS ALSO AS A RESULT OF A SETTLEMENT WITH LIMITED PARTNERS DELVAL HAS BECOME THE GENERAL PARTNER OF ABOUT 120 AFFILIATED PARTNERSHIPS FOR WHICH IT WILL RECEIVE MANAGEMENT FEES ADOPTION OF A CORPORATE FORM WILL PERMIT THE COMPANY TO TAKE ADVANTAGE OF AN OPERATING LOSS CARRYFORWARD OF ABOUT 41 MILLION WITH WHICH IT PLANS TO OFFSET FUTURE TAXABLE INCOME PRESIDENT AND CHIEF EXECUTIVE BEN S READ JR SAID IN AN INTERVIEW DELVAL REACHED A MEMORANDUM OF UNDERSTANDING LAST MONTH WITH ATTORNEYS INVOLVED IN THE SHAREHOLDER SUIT WHICH REPRESENTS ABOUT THREE MILLION OF THE COMPANY'S SEVEN MILLION COMMON SHARES OUTSTANDING THE SETTLEMENT CALLS FOR HOLDERS TO RECEIVE ABOUT 135 MILLION IN COMMON STOCK 9 MILLION IN 10YEAR NOTES WITH INTEREST PAID WITH ADDITIONAL NOTES FOR THE FIRST FIVE YEARS AND 14 MILLION IN OTHER PAYMENTS DELVAL HAS LITTLE CASH AVAILABLE TO MAKE THE VARIOUS PAYMENTS THE COMPANY RESERVED 64 MILLION AS OF DEC 31 FOR THE LOSS IT EXPECTS TO INCUR IF THE SETTLEMENT IS APPROVED THE COMPANY REMAINS UNDER INVESTIGATION BY THE SEC THE NEW YORK STOCK EXCHANGE AND NEW JERSEY REGULATORS THE SEC IS EXAMINING WHETHER THE COMPANY AND CERTAIN OFFICERS MADE FRADULENT FILINGS WHILE THE NYSE IS PROBING THE COMPANY'S DECLARATION AND RECISSION OF CERTAIN DIVIDEND PAYMENTS IN 1990 NEW JERSEY IS REVIEWING THE REGISTRATION STATUS OF CERTAIN AFFILIATE PARTNERSHIPS AND THE US ATTORNEY IN SOUTH CAROLINA WHERE A DELVAL AFFILIATE SOLD SOME LIMITED PARTNERSHIPS HAS LAUNCHED A CRIMINAL INVESTIGATION AGAINST FORMER OFFICERS 9305030115 930503 INTERNATIONAL US STANCE ON UKRAINE PUSHES IT CLOSER TO DECLARING ITSELF A NUCLEAR NATION BY NATALIA A FEDUSCHAK SPECIAL TO THE WALL STREET JOURNAL KIEV UKRAINE WASHINGTON'S HARDLINE ATTITUDE TOWARD UKRAINE'S NUCLEAR STOCKPILE IS PUSHING IT TO CONSIDER HOLDING ON TO SOME OF THE ATOMIC WEAPONS IT INHERITED FROM THE FORMER SOVIET UNION RATHER THAN GIVE THEM UP AS THE US AND RUSSIA WANT IT TO DO UKRAINIAN OFFICIALS AND WESTERN OBSERVERS HERE SAY THIS WEEK THE UKRAINIAN PARLIAMENT MAY BEGIN CONSIDERING WHETHER TO CLAIM OWNERSHIP OF THE NUCLEAR ARSENAL ON ITS TERRITORY THE DEBATE IS THE RESULT OF A LETTER FROM 162 DEPUTIES TO UKRAINIAN PRESIDENT LEONID KRAVCHUK AND PARLIAMENTARY CHAIRMAN IVAN PLIUSCH THE LAWMAKERS SAY IN THE LETTER THAT THEY CAN'T RATIFY ANY INTERNATIONAL DISARMAMENT TREATIES UNTIL UKRAINE PROCLAIMS ITSELF OWNER OF ALL THE FORMER SOVIET NUCLEAR WEAPONS ON ITS TERRITORY WITHOUT SUCH A PROCLAMATION UKRAINE COULD BE SEEN AS LIQUIDATING NUCLEAR WEAPONS THAT DON'T BELONG TO IT THE LETTER SAID DEPUTIES SAY THEY WERE PROMPTED TO WRITE THE LETTER BECAUSE RUSSIA HAS LAID CLAIM TO THE WEAPONS SOMETHING UKRAINE DISPUTES AFTER THE SOVIET UNION BROKE UP UKRAINE INHERITED 1656 LONGRANGE WARHEADS MOUNTED ON 46 SS24 MISSILES AND 130 SS19 MISSILES PLUS 37 BLACKJACK BOMBERS UKRAINIAN LAWMAKERS SAY THEY EXPECT THAT A DECLARATION OF OWNERSHIP OF THE WEAPONS ON ITS SOIL WILL BE MADE SOONER RATHER THAN LATER IN EFFECT THAT WILL BE A DECLARATION BY UKRAINE THAT IT IS A NUCLEAR STATE SAID IHOR DERKACH A MEMBER OF UKRAINE'S PARLIAMENTARY COMMITTEE ON MILITARY AFFAIRS WHILE UKRAINE DOESN'T HAVE TECHNICAL CONTROL OVER THE WEAPONS MR DERKACH SAID IT IS ONLY A MATTER OF TIME BEFORE KIEV CAN BE IN FULL POSSESSION OF THE WEAPONS HE SAID THE 43RD ROCKET ARMY WHICH SERVICES THE COUNTRY'S INTERCONTINENTAL BALLISTIC MISSILES IS READY TO ACCEPT AN OATH OF ALLEGIANCE TO UKRAINE OFFICERS WHO SERVED IN RUSSIA AND WHO HAVE NUCLEAR EXPERTISE ARE RETURNING TO UKRAINE WHILE OTHER UNDISCLOSED OPERATIVE SYSTEMS ARE READY TO TAKE STEPS TO TAKE THE WEAPONS UNDER TECHNICAL CONTROL HE SAID UKRAINIAN LAWMAKERS SAY THEY WILL RATIFY THE START I ARMS CONTROL TREATY WHICH CALLS FOR 36 OF UKRAINE'S NUCLEAR ARSENAL TO BE LIQUIDATED BUT THEY SAY THEY HAVE NO INTENTION OF SIGNING THE INTERNATIONAL NONPROLIFERATION TREATY WASHINGTON CAN'T BE BLAMED ENTIRELY FOR UKRAINE'S SHIFT TOWARD DECLARING ITSELF A NUCLEAR NATION BUT WESTERN OBSERVERS IN UKRAINE SAY US INSISTANCE THAT IT WOULD DEAL WITH UKRAINE ONLY AFTER KIEV RATIFIES THE NUCLEAR DISARMAMENT TREATIES HAS HARDENED UKRAINE'S POSITION THESE OBSERVERS SAY THE BUSH ADMINISTRATION SHOULD HAVE PAID MORE ATTENTION TO UKRAINE AFTER KIEV ANNOUNCED IN 1991 THAT IT INTENDED TO BE A NONNUCLEAR NATION DURING PARLIAMENTARY CHAIRMAN PLIUSCH'S VISIT TO WASHINGTON IN SEPTEMBER A NATIONAL SECURITY COUNCIL OFFICIAL IS REPORTED TO HAVE LECTURED HIM SAYING YOU HAVE TO HAVE ECONOMIC REFORM YOU HAVE TO GIVE UP YOUR NUCLEAR WEAPONS OR ELSE USUKRAINIAN RELATIONS WILL BE ENDANGERED AFTER A PAUSE MR PLIUSCH RETORTED WHAT RELATIONS EPISODES LIKE THESE WERE ENDEMIC TO USUKRAINIAN RELATIONS UNDER PRESIDENT BUSH THE WESTERN OBSERVERS SAY KIEV SHOULD HAVE BEEN GIVEN LOANS A SEPARATE AID PACKAGE AND TECHNICAL ASSISTANCE AND THE US SHOULD HAVE HELPED SMOOTH THE TROUBLED UKRAINIANRUSSIAN RELATIONSHIP IN THIS WAY THEY SAY WASHINGTON COULD HAVE UNDERMINED THE ARGUMENTS OF THOSE IN KIEV WHO INSIST UKRAINE SHOULD KEEP ITS NUCLEAR WEAPONS UNDER PRESIDENT CLINTON THE RELATIONSHIP HAS DETERIORATED FURTHER AFTER A CHILLY MEETING WITH UKRAINIAN FOREIGN MINISTER ANATOLIY ZLENKO LAST MONTH MR CLINTON REFUSED TO MEET WITH UKRAINIAN PRIME MINISTER LEONID KUCHMA DESPITE COMMENTS MADE BY US SECRETARY OF STATE WARREN CHRISTOPHER THAT WASHINGTON WAS ALWAYS READY TO SPEAK TO THE UKRAINIANS DMYTRO PAVLYCHKO CHAIRMAN OF THE PARLIAMENTARY COMMITTEE ON FOREIGN AFFAIRS SAID KIEV GOT THE INTENDED MESSAGE DON'T BOTHER US UNTIL YOU GIVE UP THE WEAPONS IT WAS A VERY NEGATIVE SIGNAL TO US SAID MR PAVLYCHKO WE ARE NORMAL PEOPLE WE HAVE A NATION IF MR CLINTON DIDN'T WANT TO MEET WITH US THE QUESTION COULD HAVE BEEN DECIDED DIFFERENTLY THE UKRAINIANS BELIEVE THAT ROMAN POPADIUK US AMBASSADOR TO UKRAINE PUSHED TO HAVE THE MEETING BUT WAS OVERRULED DURING THE CAMPAIGN I THOUGHT MR CLINTON HAD A GENUINE NEW POLICY IN THE MAKING SAID MARKIAN BILYNSKY RESEARCH DIRECTOR AT THE PYLYP ORLYK INSTITUTE FOR DEMOCRACY IN KIEV NOW I THINK IT'S IN FACT THAT CLINTON DOESN'T KNOW WHAT TO DO INSTEAD OF PROVIDING PRESSURE HE SHOULD BE PROVIDING HELP 9305030114 930503 INTERNATIONAL MATSUSHITA SET TO BUY PHILIPS' STAKE IN VENTURE BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO MATSUSHITA ELECTRIC INDUSTRIAL CO WILL PAY 185 BILLION YEN 167 BILLION TO PHILIPS ELECTRONICS NV OF THE NETHERLANDS TO TAKE FULL OWNERSHIP OF MATSUSHITA ELECTRONICS CORP A VENTURE THE COMPANIES LAUNCHED IN 1952 MATSUSHITA'S INVESTMENT ONE OF THE LARGEST BY A JAPANESE COMPANY IN RECENT YEARS COMES AT A TIME WHEN THE OSAKABASED GIANT'S PROFITS HAVE NOSEDIVED BECAUSE OF AN EXTENDED SLUMP IN SALES OF CONSUMER ELECTRONICS EVEN SO MATSUSHITA SHOULD HAVE LITTLE TROUBLE AFFORDING ITS PURCHASE WHICH IT SAID AMOUNTS TO LESS THAN 20 OF ITS AVAILABLE CASH BUYING PHILIPS' 35 STAKE IN THE VENTURE WILL GIVE MATSUSHITA 100 OWNERSHIP OF IT THE DEAL MARKS A TURNING POINT IN THE CLOSE COOPERATION MATSUSHITA AND PHILIPS HAVE MAINTAINED SINCE AFTER WORLD WAR II WHEN THE COMPANIES FOUNDED MATSUSHITA ELECTRONICS THE DUTCH ELECTRONICS GIANT WAS A TEACHER OF MATSUSHITA IN FIELDS SUCH AS SEMICONDUCTORS AND CATHODERAY TUBES SAID A MATSUSHITA SPOKESMAN NOW HOWEVER MATSUSHITA IS MORE THAN CAPABLE ON ITS OWN PHILIPS IS TRYING TO STREAMLINE AMID THE DOWNTURN IN THE CONSUMER ELECTRONICS BUSINESS THE MATSUSHITA ELECTRONICS VENTURE MAKES ELECTRONIC COMPONENTS SUCH AS SEMICONDUCTORS AND CATHODERAY TUBES FOR TELEVISION SCREENS AND RANKS AS THE WORLD'S 10THLARGEST CHIPMAKER ACCORDING TO THE MARKETRESEARCH FIRM DATAQUEST INC IT EMPLOYS 22000 WORKERS AND MAINTAINS FIVE UNITS IN THE US MALAYSIA SINGAPORE AND CHINA ITS SALES FOR THE FISCAL YEAR ENDED MARCH 31 1992 WERE 4667 BILLION YEN ACCORDING TO MATSUSHITA ANALYSTS SAID THAT WITH FULL OWNERSHIP OF ITS ONLY CHIPMAKING SUBSIDIARY MATSUSHITA WILL FINALLY HAVE THE OPPORTUNITY TO INVEST MORE HEAVILY IN SEMICONDUCTOR PRODUCTION MATSUSHITA ELECTRONICS HAS ALWAYS BEEN IN THE BACKWATER THEY'VE GOT SOME INTERESTING TECHNOLOGY BUT THEY HAVEN'T HAD THE RESOURCES TO CAPITALIZE ON IT SAID PETER WOLFF A TECHNOLOGY ANALYST WITH KIDDER PEABODY & CO IN TOKYO BEFORE ANY TIME MATSUSHITA WANTED TO INVEST IN PRODUCTION IT NEEDED PHILIPS' APPROVAL AND SINCE PHILIPS WAS PRETTY CASHSTRAPPED THEY ALWAYS HAD TROUBLE I'VE HAD THE FEELING MATSUSHITA HAS FELT PRETTY CONSTRAINED RECENTLY FOR PHILIPS WHICH HAS BEEN SEARCHING FOR WAYS TO CUT ITS DEBT SELLING ITS STAKE IN MATSUSHITA ELECTRONICS OFFERS AN IMMEDIATE RETURN ACCORDING TO THE MATSUSHITA SPOKESMAN PHILIPS FIRST RAISED THE POSSIBILITY OF SELLING ITS STAKE TO MATSUSHITA IN MARCH PHILIPS REPORTED A 1992 NET LOSS OF 900 MILLION GUILDERS 5075 MILLION AND SAID IT PLANNED HEFTY COST CUTS THIS YEAR THE RESULT REFLECTED 12 BILLION GUILDERS IN EXTRAORDINARY CHARGES FOR MORE JOB CUTS AND PLANT CLOSURES THIS YEAR THE MATSUSHITA SPOKESMAN SAID THE PURCHASE OF MATSUSHITA ELECTRONICS WON'T AFFECT OTHER VENTURES WITH PHILIPS SUCH AS A DRYBATTERY MANUFACTURING JOINT VENTURE IN BELGIUM THE TWO COMPANIES ALSO EXPECT TO CONTINUE THEIR JOINT EFFORTS TO PROMOTE A NEW DIGITAL AUDIO PRODUCT CALLED DIGITAL COMPACT CASSETTE 9305030113 930503 GERBER RECALLS BABY FOOD FREMONT MICH GERBER PRODUCTS CO SAID IT IS RECALLING ABOUT 32000 JARS OF OATMEAL BABY FOOD BECAUSE OF TWO CONSUMER COMPLAINTS IN MINNEAPOLIS ABOUT FOREIGN MATTER GERBER SAID THE FOUROUNCE JARS OF 2ND FOODS OATMEAL WITH APPLESAUCE AND BANANAS WERE PRODUCED AT ITS FREMONT PLANT ON JAN GERBER WHICH BLAMED THE PROBLEM ON A MECHANICAL BREAKDOWN AT THE PLANT SAID IT IS REMOVING THE JARS FROM RETAIL DISTRIBUTION AND HAS NOTIFIED THE FOOD AND DRUG ADMINISTRATION THE JARS BEAR AN EXPIRATION DATE OF JAN 20 1995 9305030112 930503 OPTICAL IMAGING SYSTEMS TROY MICH OPTICAL IMAGING SYSTEMS INC SAID IT WILL CONSTRUCT A NEW MANUFACTURING FACILITY FOR ACTIVE MATRIX LIQUID CRYSTAL DISPLAYS PENDING RECEIPT OF A GOVERNMENT GRANT THE COMPANY HAS APPLIED FOR FUNDING TO MANUFACTURE A 100 MILLION FACILITY FOR THE HIGHDEFINITION DISPLAY PANELS FROM THE ADVANCED RESEARCH PROJECTS AGENCY OF THE DEFENSE DEPARTMENT THE TWOYEAR PROGRAM UNDER ARPA CALLS FOR 50 MILLION 9305030111 930503 LETTERS TO THE EDITOR AIRLINES SUFFER FOR A BETTER FUTURE READERS OF THE JOURNAL PROBABLY NEED NO HELP IDENTIFYING THE OMISSIONS IN PAUL DEMPSEY'S DEPICTION OF THE BITTER FRUITS OF AIRLINE DEREGULATION COUNTERPOINT APRIL 8 TO GIVE ONLY ONE EXAMPLE YOU WOULD HARDLY GUESS FROM HIS REFERENCE TO THE TREMENDOUS LOSSES SUFFERED BY WORKERS THAT AIRLINE WAGES AND FRINGES AVERAGED 51000 LAST YEAR AND TOTAL EMPLOYMENT WAS MORE THAN 75 ABOVE PREDEREGULATION LEVELS STILL THE INDUSTRY'S PAIN AND SUFFERING HAVE BEEN REAL WHAT IS PROBABLY LESS OBVIOUS IS THAT PROF DEMPSEY'S REMEDY FOR THAT UNDENIABLE FINANCIAL DISTRESS AS WELL AS FOR THE OBSCENELY HIGHER UNRESTRICTED FARES PAID BY PERHAPS 15 OF THE TRAVELERS A REMEDY HE DESCRIBES IN NO GREATER DETAIL THAN THAT IT WOULD LIE BETWEEN THE POLARIZED EXTREMES OF PUBLIC UTILITY REGULATION AND LAISSEZFAIRE DEREGULATION OR BEYOND IS FROM NEVERNEVER LAND ONE LOGICAL COMPONENT OF THE REGULATION HE WOULD PRESUMABLY RESTORE WOULD BE FLOORS UNDER FARES TO MITIGATE THE INTENSE COMPETITION THAT HAS FOISTED SUCH HEAVY LOSSES ON THE INDUSTRY BUT WHERE WOULD WE SET THEM A FEW YEARS AGO UNRESTRICTED ONEWAY FARES BETWEEN SAN FRANCISCO AND LOS ANGELES WERE 196 AND 270 ROUGHLY 60 AND 90 CENTS A MILE SOUTHWEST AIRLINES THEN INVADED THAT MARKET IN 1989 OFFERING UNRESTRICTED FARES OF 72 ONPEAK AND 62 OFFPEAK BETWEEN OAKLAND AND BURBANK THAT IS HOW SOUTHWEST'S FARES COMPARE WITH THOSE OF INCUMBENT MAJOR CARRIERS ALL OVER THE COUNTRY WHENEVER IT ENTERS INTO COMPETITION WITH THEM YET IT MAKES MONEY CONSISTENTLY YEAR AFTER YEAR WOULD PROF DEMPSEY PREVENT SOUTHWEST OR OTHERS LIKE IT THAT SEEM TO BE REAPPEARING FROM ENTERING MARKETS OR MAKE THEM RAISE FARES THAT ARE ALREADY PROFITABLE TO THEM AND WOULD FLOORS UNDER FARES SUFFICE THE LESSON OF HISTORY IS THAT IF THE GOVERNMENT PREVENTS COMPETITION FROM DRIVING PRICES DOWN TO MARGINAL COSTS OR TO THE AVERAGE TOTAL COST OF THE MOST EFFICIENT FIRMS COMPETITION WILL INSTEAD TAKE FORMS THAT RAISE COSTS TO PRICE IF THE AIRLINE INDUSTRY IS EXCESSIVELY COMPETITIVE THEREFORE IT WILL SOON BE NECESSARY AS COMPETITIONSUPPRESSING REGULATORS HAVE FOUND IN THE PAST TO LIMIT THE COMMISSIONS THE CARRIERS CAN LEGALLY PAY TRAVEL AGENTS PROHIBIT THEIR OFFERING TRAVELERS FREE HEADSETS RESTRICT THE SIZE OF THE SANDWICHES THEY PASS OUT AND THE NUMBER OF FLIGHTS THEY SCHEDULE ON EACH ROUTE DENSER SCHEDULING IS ONE OF THE MOST POWERFUL AND COSTINFLATING METHODS OF NONPRICE COMPETITION PRESUMABLY PROF DEMPSEY LIKE OTHER CRITICS OF DEREGULATION HAS IN MIND ALSO PUTTING CEILINGS ON UNRESTRICTED FARES SOME OF WHICH ARE INDEED OUTRAGEOUS AS WELL AS PROBABLY SELFDEFEATING BUT CEILINGS ON PRICE ALONE LIKE FLOORS ARE MEANINGLESS UNLESS WE REGULATE THE OTHER DIMENSIONS OF THE OFFERINGS THE REGULATORS WOULD SOON FIND THEMSELVES DELUGED WITH COMPLAINTS THAT THE LINES WERE GETTING LONGER AT THE TICKET COUNTERS OR THAT THE CARRIERS DENIED THE RIGHT TO CHARGE THE PREVIOUSLY HIGH UNRESTRICTED FARES WERE CUTTING BACK ON THEIR SCHEDULING SKIMPING ON THEIR OFFERS OF FREQUENT FLYER CREDITS OR UPGRADING FULLFAREPAYING PASSENGERS TO FIRST CLASS LESS FREQUENTLY THAN BEFORE REGULATION OF AN OTHERWISE COMPETITIVE INDUSTRY IS A BOTTOMLESS PIT THE TIGHTFISTED REGIME OF NEW DEAL PUBLIC UTILITY REGULATION THAT PROF DEMPSEY DENIES ANY INTENTION OF RESTORING IS INDEED THE ONLY LOGICAL ALTERNATIVE TO NO REGULATION THE LATTER OF WHICH DOES NOT OF COURSE MEAN NONENFORCEMENT OF THE ANTITRUST LAWS OR ABANDONMENT OF RESPONSIBILITY ON THE PART OF GOVERNMENTS OR PRIVATE PARTIES UNDER SUITABLE COMPETITIVE OR REGULATORY RESTRAINTS TO PROVIDE EFFICIENT AIR TRAFFIC CONTROL AND SUFFICIENT AIRPORT CAPACITY COMPARED WITH THE ONLY TRUE ALTERNATIVE THE NONREGULATION PREFERRED BY PROF DEMPSEY'S LAISSEZFAIRE THEOLOGIANS DOES NOT LOOK SO BAD AFTER ALL USUALLY THE WHOLLY INACCURATE COMMENTS OF SELFDESCRIBED ACADEMIC EXPERTS WITH NO EXPERIENCE OF MARKETPLACE REALITY ARE HAPPILY IGNORED FOR THEIR ABSOLUTE IRRELEVANCE BUT GIVEN THE CLINTON ADMINISTRATION'S WELLMEANING IF MISGUIDED INTENTION TO INTERVENE TO IMPROVE THE AIRLINE MARKETPLACE IT SEEMS MORE IMPORTANT TO REPEAT WHAT MOST KNOW FIRST NOW THAT THE INDUSTRY IN THE QUIRKY PROCESS OF ACCOMMODATION TO THE RIGORS OF UNPROTECTED COMPETITION HAS TEMPORARILY RESOLVED ITSELF AROUND THE INFORMATION TECHNOLOGY EMPLOYED SO WELL BY THE TWO CLEAR SURVIVORS AMERICAN AND UNITED IT WOULD BE TRULY TRAGIC TO REREGULATE AND ENSHRINE THIS PREMATURE RESULT UNFORTUNATELY MR CLINTON'S OPENNESS TO ACTIVISM HAS ALREADY UNLEASHED MR DEMPSEY AND FELLOW TRAVELERS WHO HAVE WITH LOOSE TONGUES ACHIEVED SOME MEASURE OF DE FACTO REREGULATION BY SIGNALING AMBIGUOUS BUT STRIDENT INTENT TO REREGULATE THIS LOOSE TALK CHILLS THE MARKETPLACE OF ENTREPRENEURS AND INVESTORS ALREADY A MOST PROMISING GLOBAL COMBINATION OF LUFTHANSA AND CONTINENTAL WAS STOPPED A CLEARLY FAILING CARRIER WAS NOT ALLOWED TO FAIL THUS PUTTING FURTHER BURDENS ON THE ABLEST COMPETITORS WHICH ARE ALREADY STRUGGLING WITH LARGE LOSSES CERTAIN COMPETITORS WERE TOLD NOT TO COMPETE AND POTENTIAL NEW ENTRANTS HAVE PUT PLANS ON HOLD SECOND IT IS CLEARLY THE GOVERNMENT IN ALL ITS FORMS OF REGULATION THAT IS BY FAR THE BIGGEST IMPEDIMENT TO NEW ENTRY IN THE INDUSTRY FROM CLOGGED AIRPORTS TO CLOGGED AIR TRAFFIC CONTROL SYSTEMS WHAT AN IRONY IT WOULD BE TO PUT THE VERY INSTITUTIONS THAT HAVE SO BADLY FAILED TO PROVIDE THE NECESSARY INFRASTRUCTURE IN AN EVEN MORE POWERFUL POSITION TO ADVERSELY EFFECT THE INDUSTRY THIS IMMENSE COST OF INEFFICIENCY PAID BY ALL TRAVELERS DUE TO THE INABILITY TO PROVIDE AN EFFICIENT AIRWAY SYSTEM COMES ON TOP OF THE TENS OF BILLIONS OF TAXES TAKEN FROM TRAVELERS VIA THE 10 TICKET TAX ON ALL TRAVEL BILLIONS UPON BILLIONS OF TAXES HAVE BEEN COLLECTED TO BUILD A HIGHLY INEFFICIENT CREAKY AIRWAY SYSTEM THAT TAXES EVERYONE'S TIME BILLIONS MORE IN TAXES LIE UNUSED IN WASHINGTON HOSTAGE TO THE DEFICIT AND NOW A NEW ONEROUS DEPARTURE TAX HAS BEEN PROPOSED TO RAISE YET MORE BILLIONS TO BE USED IN LIEU OF THE TAXES ALREADY COLLECTED BUT AS YET UNSPENT OUTRAGE IS NOT STRONG ENOUGH TO DEFINE THE EMOTION FELT WHEN PEOPLE HAVE THE CHUTZPAH TO ADVOCATE THAT THE VERY SAME GOVERNMENTAL INSTITUTIONS BE DIVERTED FROM STRUGGLING WITH THE HORRENDOUS WASTEFUL BURDEN ALREADY CREATED TO TRY THEIR HAND AT NEW FORMS OF REGULATION FOR AN INDUSTRY ALREADY STAGGERING FROM THEIR PREVIOUS EFFORTS THIRD AS ONE WOULD EXPECT IT TAKES TIME TO DEREGULATE AND RATIONALIZE AN INDUSTRY MISORDERED BY REGULATION FOR ITS WHOLE HISTORY THE PROCESS IS NOW WELL UNDER WAY AND THE TIME IS NOW RIPE FOR NEW ENTREPRENEURS THE ENTRY OF EXCITING EFFICIENT PROVIDERS THAT COULD EVEN SURPASS THE TRAVEL BARGAINS OF SAY A PEOPLE EXPRESS WHAT A TRAVESTY IT WOULD BE IF WE WERE NOW TO SQUELCH THIS PENDING DEVELOPMENT JUST AS IT IS BEGINNING TO APPEAR STRONG ENTREPRENEURS AND INVESTORS RIGHTLY FEAR THE AMBIGUOUS AND ARBITRARY HAND OF GOVERNMENT REGULATION THE RISKS IN THE BUSINESS OF AVIATION ARE ALREADY TOO GREAT AND SIMPLY CAN'T BE UNDERTAKEN IF GOVERNMENT INTERCEDES TO ADD A FURTHER CHILLING DOUBT TO BE SURE THERE WILL BE SOME NEW COMPETITORS AND THE ONES THAT CRY FOR GOVERNMENT PROTECTION WILL GET WHAT THEY DESERVE SUBSIDIES AND PROTECTION MOST OFTEN WORK TO REDUCE THE INCENTIVE TO OPERATE EFFICIENTLY THE STRONG WILL SIMPLY MIGRATE ELSEWHERE IF THE ADMINISTRATION WILL ONLY LISTEN AND KEEP FAITH WITH THE AVIATION MARKETPLACE WE WILL SEE THE REDEVELOPMENT OF A VIBRANT LOWCOST COMPETITIVE SYSTEM IF NOT AND IF IT TAKES ITS GUIDANCE FROM MR DEMPSEY ET AL OUR LOCAL ENTREPRENEURIAL SYSTEM WILL WITHER LEAVING FEWER AND WEAKER PLAYERS AND THE LARGE MONOLITHIC BUREAUCRATIC GLOBAL COUNTERPARTS TO OUR GOVERNMENT WILL SURVIVE WITH VERY HIGH COSTS AND MUCH REDUCED TRAVEL OPPORTUNITY 9305030110 930503 INTERNATIONAL PT ASTRA'S PROFIT FELL IN '92 JAKARTA INDONESIA INDONESIAN AUTOMOTIVE GIANT PT ASTRA INTERNATIONAL CONFIRMED IT HAD A BUMPY 1992 REPORTING A 61 PLUNGE IN PROFIT PROFIT FELL TO 8149 BILLION RUPIAH 394 MILLION OR 336 RUPIAH A SHARE FROM 2102 BILLION OR 868 RUPIAH A SHARE IN 1991 SALES DROPPED 95 TO 446 TRILLION RUPIAH IT WAS A TUMULTUOUS YEAR FOR ASTRA AS WILLIAM SOERYADJAYA THE FOUNDING CHAIRMAN STEPPED DOWN AND HIS FAMILY WAS FORCED TO SELL NEARLY ALL OF ITS STAKE WHICH TOTALED 76 AT THE BEGINNING OF THE YEAR THE SOERYADJAYAS SOLD SHARES TO TACKLE DEBTS AT FAMILYOWNED PT BANK SUMMA WHOSE LICENSE WAS REVOKED BY THE GOVERNMENT IN DECEMBER 9305030109 930503 AUSTRALIAN GROUPS WIN PAYTV BIDS OVER BIG FIRMS BY S KARENE WITCHER STAFF REPORTER OF THE WALL STREET JOURNAL SYDNEY AUSTRALIA TWO RELATIVELY UNKNOWN AUSTRALIAN GROUPS BEAT SEVERAL BIG INTERNATIONAL PLAYERS INCLUDING NEWS CORP AND TIME WARNER INC FOR THE RIGHT TO DELIVER PAY TELEVISION BY SATELLITE IN AUSTRALIA UCOM PTY BID A177 MILLION US1258 MILLION FOR LICENSE A WHICH CARRIES A CONDITION THAT EXISTING FREETOAIR TV BROADCASTERS MAJOR NEWSPAPERS AND TELECOMMUNICATIONS COMPANIES CAN'T OWN MORE THAN 2 OF THE LICENSE OR BE IN A POSITION TO CONTROL IT HI VISION LTD SECURED THE LESSRESTRICTIVE LICENSE B WITH AN OFFER OF A212 MILLION EACH LICENSE GIVES THE HOLDER THE RIGHT TO PROVIDE FOUR SATELLITE PAYTV CHANNELS A THIRD CHANNEL IS EARMARKED FOR STATEOWNED AUSTRALIAN BROADCASTING CORP RUPERT MURDOCH'S NEWS CORP WHICH WAS BIDDING FOR LICENSE B IN A CONSORTIUM ISSUED A STATEMENT THAT IF IT IS LOCKED OUT OF SATELLITE DISTRIBUTION IT INTENDS TO PURSUE PAYTV THROUGH ALTERNATIVE TECHNOLOGIES SUCH AS CABLE WHEN IT BECOMES AVAILABLE IN AUSTRALIA OTHER MEMBERS OF THE CONSORTIUM ARE AUSTRALIAN & OVERSEAS TELECOMMUNICATIONS CORP AUSTRALIA'S STATEOWNED NATIONAL TELEPHONE COMPANY AND THE COUNTRY'S THREE FREETOAIR COMMERCIAL NETWORKS ONE OF WHICH IS CONTROLLED BY AUSTRALIAN MEDIA MAGNATE KERRY PACKER IN NEW YORK A SPOKESMAN FOR TIME WARNER SAID THE COMPANY IS STILL INTERESTED IN PURSUING PAYTV IN AUSTRALIA THE USBASED MEDIA CONCERN SAID IT BID FOR A LICENSE WITH PARTNERS THAT INCLUDE TELECOMMUNICATIONS INC THE LARGEST US CABLE TV OPERATOR AND COMCAST CORP ANOTHER BIG US CABLE OPERATOR NEITHER NEWS CORP NOR TIME WARNER HAS DISCLOSED THEIR BID PRICES BUT BOTH ARE WIDELY BELIEVED TO HAVE BEEN SUBSTANTIALLY LOWER THAN THE WINNING BIDS SOME INDUSTRY ANALYSTS SAID THE WINNERS OVERPAID ONE PERSON FAMILIAR WITH THE TWO WINNING GROUPS DESCRIBED THEM AS ENTREPRENEURS WITH DIVERSIFIED INTERESTS THE GOVERNMENT SAID BOTH GROUPS HAD SUBMITTED INDUSTRY DEVELOPMENT PLANS THAT ARE EXPECTED TO PROMOTE THE MANUFACTURE OF PAYTV RELATED ITEMS SUCH AS RECEPTION EQUIPMENT IN AUSTRALIA BESIDES THE INITIAL PAYMENT FOR THE LICENSES ANALYSTS ESTIMATE THAT THE TWO GROUPS SEPARATELY WILL HAVE TO INVEST ANOTHER ROUGHLY A300 MILLION EACH IN STARTUP COSTS AND WORKING CAPITAL TO SUSTAIN WHAT LOOKS TO BE A LOSING PROPOSITION FOR AT LEAST THE FIRST FIVE YEARS OF OPERATION THE WINNERS STILL MUST GET CERTAIN REGULATORY APPROVALS 9305030108 930503 TECHNOLOGY VENTRITEX'S DEFIBRILLATOR SYSTEM SUNNYVALE CALIF VENTRITEX INC SAID IT RECEIVED APPROVAL FROM THE FOOD AND DRUG ADMINISTRATION FOR COMMERCIAL RELEASE OF ITS CADENCE IMPLANTABLE DEFIBRILLATOR SYSTEM WHICH TREATS LIFETHREATENING ABNORMAL HEART RHYTHMS THE COMPANY SAID IT WILL BEGIN COMMERCIAL DISTRIBUTION OF THE PRODUCT IMMEDIATELY THE NEW DEVICE IS THE FIRST COMMERCIALLY RELEASED PRODUCT OF THE EIGHTYEAROLD COMPANY SALES OF THE CADENCE SYSTEM HAD BEEN RESTRICTED DURING CLINICAL TRIALS WHICH BEGAN WITH THE SYSTEM'S INITIAL IMPLANT IN 1989 IN ALL THE CLINICAL TESTING THE CADENCE HAS BEEN IMPLANTED IN MORE THAN 1800 PATIENTS IN THE US AND EUROPE 9305030107 930503 MARKETING & MEDIA CABLERATE ROLLBACK ISSUE SETTLED AS FCC SETS ORDER WASHINGTON A LASTMINUTE FLAP OVER WHEN CONSUMERS WILL SEE LOWER CABLE TELEVISION BILLS WAS SETTLED JUST AS THE FEDERAL COMMUNICATIONS COMMISSION PREPARED TO PRINT ITS ORDER ON CABLE RATES THE ORDER WHICH IS EXPECTED TO BE RELEASED TODAY WILL CONTAIN THE LONGAWAITED FORMULAS FOR DETERMINING CABLE RATES CONCERNS AROSE LAST WEEK ON CAPITOL HILL AND AMONG CONSUMER GROUPS THAT RATE ROLLBACKS COULD BE DELAYED FOR A YEAR OR MORE IF CABLE COMPANIES APPEALED ADVERSE DECISIONS BY LOCAL FRANCHISING AUTHORITIES THE AGENCY HAS ESTIMATED THAT ROLLBACKS WILL TOTAL ABOUT 1 BILLION FCC OFFICIALS SAID THE NEW RULES ALLOW CABLE COMPANIES TO APPEAL DECISIONS BY LOCAL REGULATORS AND SEEK STAYS OF ANY PRICE ROLLBACKS BUT THE AGENCY ISN'T LIKELY TO ROUTINELY GRANT REQUESTS FOR STAYS THE STANDARD FOR GETTING A STAY IS LIKE OTHER FCC ADMINISTRATIVE PROCEEDINGS SAID ROBERT CORNREVERE A TOP AIDE TO FCC CHAIRMAN JAMES QUELLO THE THRESHOLD IS VERY HIGH THE FCC ADOPTED RATE REGULATIONS APRIL 1 TO CARRY OUT LAST YEAR'S CABLE TV LAW 9305030106 930503 WHO'S NEWS IBM EXCHAIRMAN AKERS HAS FORMALLY RETIRED ARMONK NY INTERNATIONAL BUSINESS MACHINES CORP SAID FORMER CHAIRMAN JOHN F AKERS FORMALLY RETIRED FRIDAY THE ANNOUNCEMENT WAS THE CODA TO MR AKERS'S CAREER AT IBM WHICH ENDED WITH THE JANUARY EXECUTIVE SHUFFLE THAT SHUNTED ASIDE MR AKERS AND HIS TWO TOP LIEUTENANTS AFTER A TWOMONTH SEARCH IBM NAMED LOUIS V GERSTNER JR TO REPLACE MR AKERS MR GERSTNER ARRIVED AT IBM APRIL 1 WHILE MR AKERS 58 YEARS OLD REMAINED AN IBM EMPLOYEE WITHOUT TITLE HE LEFT IBM'S HEADQUARTERS HERE FOR AN OFFICE IN STAMFORD CONN WHERE IBM SAID HE WAS HELPING MR GERSTNER IN THE TRANSITION IBM SAID MR AKERS WASN'T AVAILABLE FOR COMMENT A TERSE TWOPARAGRAPH STATEMENT SAID HE INTENDS TO PURSUE PERSONAL INTERESTS 9305030105 930503 BUSINESS BRIEFS MTB BANKING CORP RECEIVED A STATE BANKING LICENSE AND FEDERAL DEPOSIT INSURANCE CORP INSURANCE ENABLING IT TO ENTER THE CONSUMER BANKING MARKET AS MTB BANK KRAFT GENERAL FOODS CORP'S OSCAR MAYER UNIT SIGNED AN AGREEMENT WITH SIGMA ALIMENTOS TO USE SIGMA AS THE EXCLUSIVE DISTRIBUTOR OF OSCAR MAYER PRODUCTS IN MEXICO PACER TECHNOLOGY SIGNED AN AGREEMENT TO ACQUIRE THE ASSETS OF SUPER GLUE CORP FOR ABOUT 3 MILLION IN CASH AND STOCK SOVEREIGN BANCORP INC REACHED AGREEMENT TO ACQUIRE VALLEY FEDERAL SAVINGS & LOAN ASSOCIATION IN A STOCK SWAP VALUED AT ABOUT 30 MILLION DIVERSICARE INC'S AMERICAN HOMEPATIENT UNIT HAS BOUGHT CLOSELY HELD HEALTH CARE MARKETING TERMS WEREN'T DISCLOSED 9305030104 930503 COLLAPSE OF BALTICA HAFNIA SPUR CHANGE DANISH CRISIS PROMPTS TIGHTER CONTROL INVESTOR CAUTION BY CHARLES FLEMING STAFF REPORTER OF THE WALL STREET JOURNAL COPENHAGEN NOW THAT THE CLEANUP IS WELL UNDER WAY BANKERS AND INSURANCE EXECUTIVES ACROSS EUROPE ARE SOBERLY ASSESSING HOW THE MELTDOWN OF DENMARK'S TWO BIGGEST INSURANCE COMPANIES IS CHANGING THEIR BUSINESSES IT HAS BEEN JUST A MONTH SINCE DANISH BANKING AND INSURANCE LEADERS COBBLED TOGETHER RESCUE PACKAGES FOR BALTICA HOLDING AS AND HAFNIA HOLDING AS THE TWO AMBITIOUS RIVALS RAN INTO TROUBLE WHEN RECESSION STACKED THE ODDS TOO HIGH AGAINST THEIR SPECULATIVE STRATEGIES DANISH FINANCIERS LED BY THE LARGEST CREDITOR DEN DANSKE BANK MANAGED TO AVERT DISASTER FOR DANISH POLICYHOLDERS AND TODAY BOAST THAT THEY DEFUSED THE CRISIS WITHOUT GOVERNMENT HELP BUT IT IS BECOMING CLEAR THAT THE EFFECTS OF THE COLLAPSES ARE BEING FELT FAR BEYOND DENMARK AND MAY PRESAGE DEEP CHANGES ACROSS EUROPE WHAT IT AMOUNTS TO IS A RETRENCHMENT IN BUSINESS STRATEGIES FROM THE GOGO 1980S TO THE MORESOBER 1990S INDEED THE LIST OF ERRORS COMMITTED BY HAFNIA AND BALTICA'S MANAGERS SOUNDS LIKE A CATALOG OF THE EXCESSES OF THE PAST DECADE OFTEN WITH FLAMBOYANCE BOTH COMPANIES DEVISED A SERIES OF PLANS IN THE LATE 1980S TOGETHER AND AS RIVALS THAT INCLUDED FORGING A SINGLE PANSCANDINAVIAN INSURANCE COMPANY AND DEVELOPING SPRAWLING BUSINESS EMPIRES THAT RANGED FROM MEATPACKING PLANTS AND SOCCER TEAMS TO REAL ESTATE AND FINANCIAL SERVICES ULTIMATELY SUCH MOVES LED TO THE COLLAPSE OF BOTH GROUPS' HOLDING COMPANIES UNDER THE WEIGHT OF ALMOST 10 BILLION DANISH KRONER 164 BILLION IN DEBTS OUTSTANDING BETWEEN THEM ALTHOUGH THE HAFNIA AND BALTICA INSURANCE COMPANIES STILL ARE ACTIVE THEIR HOLDING COMPANIES ARE EFFECTIVELY DEFUNCT SERVING NO FUNCTION OTHER THAN TO SELL WHATEVER REMAINING ASSETS THEY HOLD LATE LAST MONTH HAFNIA INSURANCE WAS SOLD TO ITS DOMESTIC RIVAL CODAN INSURANCE WHICH IS MAJORITYOWNED BY BRITAIN'S SUN ALLIANCE PLC THIS LEFT THE HOLDING COMPANY WITH LITTLE MORE THAN A PILE OF DEBT SOME DISGRUNTLED SHAREHOLDERS AND A CHUNK OF STOCK IN BALTICA HOLDING VALUED AT A BARE FRACTION OF ITS ORIGINAL COST BALTICA INSURANCE WHICH WAS SPUN OFF FROM ITS DEBTRIDDEN HOLDING COMPANY LAST MONTH IS EFFECTIVELY UNDER THE CONTROL OF DEN DANSKE BANK WHICH OWNS 34 OF ITS SHARES DEN DANSKE ALSO HAS AGREED TO MAKE NEW CREDIT LINES AVAILABLE TO BALTICA HOLDING IN EXCHANGE FOR COLLATERAL BELIEVED TO BE BASED ON AN ADDITIONAL 27 STAKE IN BALTICA INSURANCE GIVING IT AN EVEN GREATER SAY IN THE INSURER'S AFFAIRS DEN DANSKE CURRENTLY IS LOOKING FOR A NEW MANAGEMENT TEAM TO TAKE OVER THE INSURANCE COMPANY AND IS LIKELY TO TRY TO PLACE SOME OF ITS STAKE IN BALTICA INSURANCE WITH DANISH INSTITUTIONAL INVESTORS INDUSTRY WATCHERS BOTH IN DENMARK AND ACROSS EUROPE SAY THE COLLAPSE OF THE TWO DANISH COMPANIES WHICH BETWEEN THEM CONTROLLED ABOUT ONETHIRD OF THE DANISH NONLIFE INSURANCE MARKET HAS DIRECTLY CAUSED AMONG OTHER THINGS THE FOLLOWING CHANGES TIGHTER CONTROL OF MANAGEMENT BY NONEXECUTIVE DIRECTORS CRITICS SAY THE FORMER CHIEF EXECUTIVES OF HAFNIA AND BALTICA PER VILLUM HANSEN AND PETER CHRISTOFFERSEN RESPECTIVELY WERE ABLE TO LEAD THEIR COMPANIES TO DISASTER BECAUSE THEIR BOARDS WEREN'T VIGILANT ENOUGH AS A RESULT SEVERAL LARGE DANISH PENSION FUNDS WHICH CONTROL BIG STAKES IN MANY DANISH COMPANIES AND WHICH HAD HEAVY LOSSES IN THE HAFNIA AND BALTICA COLLAPSES CURRENTLY INSIST THAT ANY DANISH COMPANY IN WHICH THEY INVEST OVERHAUL ITS BOARD THE DANISH CONGLOMERATE SUPERFOS FOR EXAMPLE RECENTLY REPLACED FOUR DIRECTORS ON ITS NINEMAN BOARD WITH YOUNGER MEN UNDER DIRECT PRESSURE FROM PENSION FUNDS WHICH OWN MORE THAN 50 OF ITS STOCK INSURANCE COMPANIES WILL FOCUS MORE SHARPLY ON THEIR CORE BUSINESS INSURERS IN DENMARK AND ELSEWHERE HAVE DRAWN LESSONS FROM HAFNIA'S AMBITION TO EXPAND BY AIMING TO ACQUIRE FIRST BALTICA AND THEN SWEDEN'S SKANDIA AND FROM BALTICA'S SEPARATE ATTEMPTS TO CREATE A FINANCIAL CONGLOMERATE BASED ON THENINNOVATIVE IDEAS SUCH AS ONESTOP SHOPPING FOR FINANCIAL SERVICES BALTICA INVESTED IN A BANK A REALESTATE AGENCY A MORTGAGE BUSINESS AND EVEN A LAND AND SEARESCUE SERVICE ALL OF WHICH PROVED MORE OR LESS DISAPPOINTING DENMARK'S UNIBANK IS ONE OF THE CLEAREST EXAMPLES OF A FINANCIAL GROUP GOING BACK TO ITS OWN KNITTING LATE LAST YEAR IT CALLED A HALT TO PLANS FOR A MERGER WITH THE DANISH TRYG INSURANCE GROUP AND THE NYKREDIT MORTGAGE FIRM AT THE SAME TIME TRYG AND NYKREDIT BROKE UP THEIR OWN RECENTLY FORMED JOINT VENTURE THE IDEA OF ONESTOP SHOPPING IS AN IDEA WITH APPEAL ON PAPER BUT REACTIONS FROM CONSUMERS PROVED THAT CUSTOMERS REACT MORE SLOWLY SAYS STEEN HEMMINGSEN THE CHIEF EXECUTIVE OFFICER OF BALTICA HOLDING THE LESSONS ARE THAT THE MARKET AND CUSTOMER WERE NOT REALLY MATURE FOR THESE BIG FINANCIAL COMPANIES INVESTORS TAKE A MORE CAUTIOUS VIEW OF INSURANCE COMPANIES IN THE 1980S MANY INVESTORS REGARDED INSURANCE COMPANIES AS LITTLE MORE THAN WELLHEELED INVESTMENT TRUSTS WITH AMPLE HIDDEN ASSETS IN THE FORM OF PRIME REAL ESTATE ON WHICH TO BUILD FINANCIAL EMPIRES THE COLLAPSE OF THE DANISH INSURANCE GROUPS TOGETHER WITH THAT OF NORWAY'S UNI STOREBRAND WHICH JOINED HAFNIA IN SEEKING SKANDIA SHOWED THAT EVEN LARGE NATIONAL INSURERS COULD BE VULNERABLE AND HAS RAISED AWARENESS AMONG REGULATORS INVESTORS AND POLICYHOLDERS OF THE IMPORTANCE OF INSURERS' SOLVENCY RATIOS THE MARKET HAS BECOME MUCH MORE CONSCIOUS OF THE IMPORTANCE TO AN INSURER OF ITS INVESTMENT INCOME SAYS ANGUS RUNCIMAN EUROPEAN INSURANCE ANALYST AT LONDON BROKERS BARCLAYS DE ZOETE WEDD AS A RESULT ANALYSTS LIKE MR RUNCIMAN WHO ONCE SPENT THEIR TIME SCANNING THE MARKET FOR INSURANCE COMPANIES WITH HIDDEN ASSETS THAT WOULD IN TIME BE REFLECTED IN STOCK PRICES NOW SPEND THEIR TIME DIGGING FOR HIDDEN LIABILITIES SUCH AS REAL ESTATE OR LOWYIELDING INVESTMENTS IN OTHER INSURERS MANY FOREIGN BANKS ARE NOW SHYING AWAY FROM ANY BUT THE LARGEST NAMES IN DANISH BUSINESS FOREIGN INVESTORS HAVE BITTERLY CRITICIZED THE WAY HAFNIA AND BALTICA MANAGERS WITH THE HELP OF THEIR MAIN DANISH CREDITORS LED BY DEN DANSKE BANK ABRUPTLY TRANSFERRED RELATIVELY HEALTHY INSURANCE OPERATIONS INTO SEPARATE LEGAL ENTITIES THIS LEFT FOREIGN CREDITORS AND SHAREHOLDERS WITH AN INTEREST IN A DEBTRIDDEN HOLDING COMPANY BUT WITH NO ACCESS TO THE MAIN VIABLE ASSETS ONE BITTER GERMAN BANKER KURT RICHOLT OF GERMANY'S COMMERZBANK WHICH WAS ONE OF THE FOUR LARGEST NONDANISH LENDERS TO HAFNIA RECENTLY TOLD A DANISH NEWSPAPER THAT COMMERZBANK WOULD HENCEFORTH ONLY BE LENDING WITH THE BEST DANISH NAMES THE HAFNIA EPISODE WAS THE MOST UNPLEASANT AND DISAPPOINTING THING I'VE EVER EXPERIENCED IN MY BUSINESS CAREER MR RICHOLT TOLD THE PUBLICATION BOERSEN ALTHOUGH COMMERZBANK HASN'T PUT A FIGURE ON ITS HAFNIA EXPOSURE IT IS ESTIMATED TO BE AROUND 200 MILLION MARKS 127 MILLION BASED ON ITS STATEMENT THAT ONEQUARTER OF THE 21 BILLION MARKS SET ASIDE IN LOANLOSS PROVISIONS FOR 1992 CONCERNED FOREIGN COMPANIES THE OTHER MAJOR NONDANISH BANKS CARRYING HAFNIA LOANS WERE THE NETHERLANDS' ABNAMRO AND SWEDEN'S SE BANKEN 9305030103 930503 ECONOMY ECONOMIC DATA RAISE QUESTIONS OVER SLOWDOWN PATTERN OF POOR STATISTICS GIVES RISE TO SPECULATION OF NEW STALL ON THE WAY BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A STRING OF BAD ECONOMIC STATISTICS IS RAISING QUESTIONS ABOUT WHETHER POOR WEATHER CAUSED A TEMPORARY SLOWDOWN IN RECENT MONTHS OR WHETHER THE ECONOMY IS HEADING FOR ANOTHER STALL FOR THE ANSWERS MANY ECONOMISTS ARE ANXIOUSLY AWAITING FIGURES FOR APRIL HOPING THEY WILL PAINT A CLEARER PICTURE OF THE ECONOMY'S HEALTH IF IT IS TRULY WEATHER THAT HAS KEPT THINGS WEAK THEN THE LITMUS TEST WILL BE IN APRIL FIGURES SAID BRIAN JONES AN ECONOMIST FOR SALOMON BROTHERS INC IN NEW YORK IN THE LATEST DISAPPOINTING ECONOMIC REPORT FOR MARCH THE COMMERCE DEPARTMENT SAID THAT PERSONAL INCOME ROSE 05 WHICH ITSELF ISN'T BAD BUT THAT AMERICANS DIDN'T PUT THE EXTRA CASH INTO CIRCULATION INSTEAD THEY CUT PERSONAL SPENDING 04 THE LARGEST DROP IN A YEAR AND A SIGN THAT PEOPLE HAVEN'T RETURNED TO A SPENDING MOOD THE DEPARTMENT ALSO SAID FACTORY ORDERS DROPPED 15 ANOTHER INDICATION THAT MANUFACTURING SLOWED IN MARCH THE NEWS COMES ON TOP OF A DISHEARTENING REPORT LAST WEEK SHOWING THAT ECONOMIC ACTIVITY IN THE FIRST QUARTER SLOWED TO LESS THAN HALF ITS GROWTH RATE OF THE FOURTH MOSTLY BECAUSE CONSUMERS JUST WEREN'T SPENDING THAT MUCH MONEY VICE PRESIDENT AL GORE CITED THAT REPORT IN REAFFIRMING THE CLINTON ADMINISTRATION'S DESIRE TO PASS A JOBCREATING BILL TO REPLACE THE MEASURE RECENTLY BLOCKED BY SENATE REPUBLICANS THE STATISTICS SHOWED THAT AS PRESIDENT CLINTON HAD WARNED GROWTH SLIPPED BACK BELOW THE 2 THRESHOLD AT WHICH JOBS ARE NO LONGER CREATED FASTER THAN THEY'RE LOST MR GORE SAID YESTERDAY ON THE NBC NEWS PROGRAM MEET THE PRESS ONE OF THE PRIORITIES IN THE OVERALL ECONOMIC PLAN WAS TO PASS A JOBS INITIATIVE WE HAVE BARELY BEGUN TO FIGHT MANY ANALYSTS ATTRIBUTE THE RUN OF POOR FIGURES TO MISERABLE WEATHER SNOW AND RAINSTORMS BATTERED THE SOUTH WEST AND NORTHEAST DURING FEBRUARY AND MARCH BUT THERE IS ALSO CONCERN THAT THE SLUGGISHNESS REPRESENTS A FUNDAMENTAL SLOWDOWN IN THE PACE OF ECONOMIC ACTIVITY SINCE THE END OF LAST YEAR THE LATEST UNIVERSITY OF MICHIGAN SURVEY ON CONSUMER CONFIDENCE FOR APRIL ALSO SUGGESTS MORE IS AT WORK THAN MOTHER NATURE THE INDEX FELL TO 856 FROM 859 IN MARCH AND HAS DROPPED STEADILY SINCE THE START OF THE YEAR ANOTHER CONSUMER SURVEY TAKEN EARLIER BY THE CONFERENCE BOARD IN NEW YORK HOWEVER SHOWED THAT CONSUMER OPTIMISM ACTUALLY PERKED UP A BIT IN APRIL AFTER FALLING FROM JANUARY THROUGH MARCH THERE ARE SEVERAL REASONS WHY THE SLUGGISHNESS OF THE ECONOMY FROM ITS FOURTHQUARTER PACE COULD BE FUNDAMENTAL JOB GROWTH THOUGH STRONGER IN THE FIRST QUARTER THAN IT HAS BEEN SINCE THE RECESSION BEGAN IS STILL QUITE SLUGGISH INCOME GROWTH IS ALSO UNIMPRESSIVE AND AMERICANS GOT BACK LESS IN TAX REFUNDS THIS YEAR BECAUSE OF LOWER WITHHOLDINGS THERE'S ALSO CONCERN ABOUT THE NEW PRESIDENT SAYS JAMES MURRAY PRESIDENT OF LAKEWOOD BRICK & TILE CO IN DENVER HE AND OTHER MANUFACTURING EXECUTIVES SAY POSSIBLE REGULATORY CHANGES AND BURDENS FOR SMALL COMPANIES HAVE THEM APPREHENSIVE ABOUT MAKING CERTAIN BUSINESS DECISIONS SUCH AS HIRING MORE EMPLOYEES I HAVE NEVER BEEN MORE WORRIED AT ANY OTHER TIME IN MY BUSINESS LIFE MR MURRAY SAID OTHER EXECUTIVES SAY THE PROMISE OF AN INVESTMENT TAX CREDIT PROPOSED BY PRESIDENT CLINTON BUT APPARENTLY GOING NOWHERE IN CONGRESS IS MAKING THEM HOLD BACK FROM SPENDING INVESTMENT MONEY NOW SUCH ATTITUDES SUGGEST THAT AMERICA'S ECONOMY WON'T BLOOM WITH THE SPRING THE THAWING OF COLD WEATHER DOESN'T MEAN WE'RE GOING TO SEE A SHARP BOUNCEBACK IN ACTIVITY SAID DONALD MAUDE CHIEF US ANALYST FOR SCOTIAMCLEOD IN NEW YORK A CLOSELY WATCHED INDEX OF MANUFACTURING ACTIVITY FOR APRIL IS SCHEDULED TO BE RELEASED TODAY THE UNEMPLOYMENT REPORT THE MOST WIDELY FOLLOWED ECONOMIC INDEX WILL BE RELEASED FRIDAY FOR APRIL THESE TWO REPORTS MAY HOLD A KEY TO WHETHER THE ECONOMY IS STILL GROWING AT A MODEST RATE OR STALLING AGAIN WITHOUT ADJUSTMENTS FOR INFLATION PERSONAL INCOME GREW 07 IN MARCH AND SPENDING DROPPED 02 INCREASED SUBSIDIES TO FARMERS ACCOUNTED FOR A LARGE PART OF THE INCOME GAIN THE FACT THAT PEOPLE SPENT LESS THAN THEY TOOK IN HELPED BOOST THE SAVINGS RATE TO 54 OF INCOME FROM 45 IN FEBRUARY ANALYSTS SAY PEOPLE ARE LIKELY TO CONTINUE TO HOLD BACK ON SPENDING UNTIL THE JOB MARKET LOOKS MORE STABLE AND INCOME GROWTH PICKS UP MORE STEAM FACTORY ORDERS WERE DRAGGED DOWN MAINLY BY A 359 PLUNGE IN AIRCRAFT ORDERS A CATEGORY THAT IS QUITE VOLATILE ORDERS FOR INSTRUMENTS ALSO DECLINED WHILE ORDERS FOR INDUSTRIAL MACHINERY AND ELECTRONIC EQUIPMENT INCREASED ORDERS FOR NONDURABLE GOODS ROSE 07 DURING MARCH WITH MOST SECTORS SHOWING IMPROVEMENT ALL FIGURES HAVE BEEN ADJUSTED FOR INFLATION AND SEASONAL VARIATIONS EXCEPT AS NOTED HERE IS THE COMMERCE DEPARTMENT'S LATEST REPORT ON PERSONAL INCOME THE FIGURES ARE AT SEASONALLY ADJUSTED ANNUAL RATES IN TRILLIONS OF DOLLARS HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES FOR MANUFACTURERS IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED 9305030102 930503 ABREAST OF THE MARKET WITH CONFUSING RESULTS FOR 1ST QUARTER IT ISN'T SURPRISING THE MARKET IS STALLED BY DOUGLAS R SEASE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CONFUSED ABOUT THE MARKET YOU AREN'T ALONE JUST LOOK AT SOME OF THE RESULTS OF FIRSTQUARTER EARNINGS TO DATE AUTO MAKERS AND HEAVY EQUIPMENT MANUFACTURERS TURNED IN SURPRISINGLY GOOD EARNINGS BUT STEELMAKERS WHOSE PRODUCTS ARE THE CORE OF AUTOS AND MACHINERY PRODUCED LOUSY PROFITS AND WHILE BANKS HAD A SURPRISINGLY GOOD FIRST QUARTER INVESTORS NOW ARE DUMPING THEM ANALYSTS SORTING THROUGH THE SURPRISES IN FIRSTQUARTER EARNINGS BOTH POSITIVE AND NEGATIVE SAY IT ISN'T SURPRISING THAT THE STOCK MARKET HAS BEEN STALLED FOR THE PAST FEW WEEKS ECONOMICALLY SENSITIVE STOCKS DOMINATED THE LIST OF POSITIVE SURPRISES FOR THE QUARTER BUT PLAYED A BIG ROLE IN THE LIST OF NEGATIVE SURPRISES AS WELL WHILE SOME ANALYSTS THINK THE BEST IS STILL AHEAD FOR STOCK PRICES OTHERS ARE WARNING THAT A SUBSTANTIAL CORRECTION MAY BE IN THE MAKING OVERALL FIRSTQUARTER EARNINGS CAME IN ABOUT AS EXPECTED BUT IT APPEARS THAT WE'RE LOSING EARNINGS MOMENTUM SAYS HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY CORP IT LOOKS LIKE WE'RE GOING TO HAVE NOT ONLY A SLUGGISH ECONOMIC RECOVERY BUT A SUBPAR RECOVERY IN EARNINGS TOO IF THAT'S THE CASE SAYS MR JOHNSON THE PACE OF SELLING BY INSTITUTIONAL INVESTORS IS LIKELY TO INCREASE IN COMING WEEKS AND MONTHS AND IF STOCK PRICES BEGIN TO DECLINE PRECIPITOUSLY THAT RAISES QUESTIONS ABOUT JUST HOW WILLING INDIVIDUAL INVESTORS ARE GOING TO BE TO STICK WITH THEIR STOCK PORTFOLIOS OR MUTUAL FUNDS THE SMALL INVESTOR HAS BEEN THE POWER BEHIND THIS BULL MARKET AND IF HE BEGINS TO HAVE SECOND THOUGHTS ABOUT MOVING MONEY FROM CERTIFICATES OF DEPOSIT TO STOCKS THAT COULD CAUSE A SIGNIFICANT CORRECTION HE SAYS IN ANY EVENT SAYS MR JOHNSON NOT ALL THE INDUSTRIES THAT MADE THE LIST OF POSITIVE SURPRISES IN THE FIRST QUARTER CAN BE EXPECTED TO REAPPEAR ON THAT LIST AT THE END OF THE CURRENT QUARTER ALREADY INVESTORS ARE SIGNALING THAT THEY DON'T THINK BANKS AND SEMICONDUCTORS WILL BE BACK BANKS ARE A SITTING DUCK FOR DISAPPOINTMENTS HE SAYS THE INDUSTRY HAS PROFITED IMMENSELY IN RECENT QUARTERS BY USING DEPOSITS ON WHICH THEY PAY VERY LOW INTEREST RATES TO BUY LONGTERM TREASURY BONDS WITH THEIR RELATIVE HIGH YIELDS BUT THE DIFFERENCE BETWEEN INTEREST RATES ON SHORTTERM AND LONGTERM TREASURY SECURITIES IS LIKELY TO NARROW FORCING BANKS TO TAKE MORE RISK BY MAKING LOANS INSTEAD OF JUST BUYING TREASURYS AS A RESULT THE YEARTOYEAR COMPARISONS FOR MOST BANK EARNINGS ARE GOING TO START LOOKING PRETTY DISMAL SAYS MR JOHNSON AND SEMICONDUCTOR STOCKS ARE FACING THE SAME YEARTOYEAR QUANDARY HE SAYS SEMICONDUCTOR MAKERS BENEFITED FROM THE BIG PRICE WAR AMONG PERSONAL COMPUTER MANUFACTURERS THAT BEGAN LAST YEAR THE PRICE WAR RESULTED IN HEAVIERTHANEXPECTED SALES OF PERSONAL COMPUTERS WHICH IN TURN PRODUCED GOOD SALES FOR THE CHIP MAKERS NOT ONLY ARE SALES IN COMING QUARTERS GOING TO BE COMPARED WITH RISING SALES A YEAR AGO BUT THE FIRST EVIDENCE OF SOFTENING PRICES DUE TO INCREASED COMPETITION IS BEGINNING TO SURFACE HE SAYS AS A GROUP SEMICONDUCTORS HAVE GOTTEN WAY AHEAD OF THEMSELVES AND WHEN THAT HAPPENS YOU HAVE TO BE CAREFUL HE WARNS THE NEGATIVE SIDE OF THE LEDGER IS LIKELY TO SHOW SOME NEW NAMES AT THE END OF THE CURRENT QUARTER TOO BENJAMIN ZACKS A VICE PRESIDENT AT ZACKS INVESTMENT RESEARCH WHICH COMPILES THE LISTS OF POSITIVE AND NEGATIVE EARNINGS SURPRISES FOR THE WALL STREET JOURNAL SAYS IT'S ONLY A MATTER OF TIME BEFORE THE CURRENT PRICE COMPETITION AFFLICTING MANY BRANDNAME CONSUMER COMPANIES IS REFLECTED IN VERY DISAPPOINTING EARNINGS THE MOVEMENT AWAY FROM BRAND NAMES IS ONE OF THE MORE OMINOUS TRENDS FOR THE FUTURE HE SAYS DURING THE 1980S BRAND FRANCHISES WHETHER IT WAS HARLEYDAVIDSON MOTORCYCLES OR KELLOGG'S CORNFLAKES WERE THE HOTTEST THING GOING NOW THAT HAS BEEN TOTALLY REVERSED IN EVERY INDUSTRY AND THE PRICE CUTTING THAT'S GOING ON ACROSS THE BOARD IS GOING TO SHOW UP IN LOWER EARNINGS MR ZACKS FEARS THAT THE STOCK MARKET IS SHOWING SYMPTOMS OF AN IMPENDING DECLINE HE NOTES THAT INVESTORS ARE SEVERELY PUNISHING THE LEADERS OF MANY DIFFERENT INDUSTRIES SUCH AS PHILIP MORRIS WALMART STORES US SURGICAL INTERNATIONAL BUSINESS MACHINES AND EASTMAN KODAK YOU CAN'T TAKE THE LEADERS IN EVERY SECTOR AND BEAT THEM UP AND EXPECT THE OVERALL MARKET TO REMAIN HEALTHY HE SAYS THE PROBLEM IS THAT WE'VE GOT SLACK DEMAND AND FIERCE COMPETITION IN NEARLY EVERY INDUSTRY YET THERE REMAIN OPTIMISTS JOSEPH MCALINDEN CHIEF MARKET STRATEGIST AT DILLON READ CONCEDES THAT THE FIRSTQUARTER EARNINGS DATA COULD BE VIEWED NEGATIVELY BUT HE SAYS IT CAN BE VIEWED POSITIVELY TOO HOW CAN THE AUTO AND HEAVY MACHINERY BUSINESS BE DOING BETTER THAN EXPECTED WHILE STEEL WHICH IS THE MAIN INGREDIENT IN AUTOS AND HEAVY MACHINERY IS DOING WORSE HE SAYS EITHER AUTOS AND HEAVY MACHINERY WILL HAVE TO COME DOWN OR STEEL WILL HAVE TO DO BETTER I'M BETTING THAT STEEL WILL GET BETTER MR MCALINDEN WHO EARLIER THIS YEAR WAS EXPECTING A BIG CORRECTION IN STOCK PRICES THIS SUMMER SAYS THE SLOWERTHANEXPECTED PACE OF ECONOMIC GROWTH IN THE FIRST QUARTER HAS CONVINCED HIM THAT ANY CORRECTION PROBABLY WON'T OCCUR UNTIL FALL AT THE EARLIEST HE SAYS HE THINKS THE STOCK MARKET IS BEING DRIVEN NOT SO MUCH BY EARNINGS AS BY LOW INTEREST RATES EVIDENCE THAT SHORTTERM RATES ARE BEGINNING TO RISE WOULD BE THE LIKELY TRIGGER TO ANY CORRECTION HE SAYS BUT WITH THE ECONOMY STUMBLING ALONG AT A GROWTH RATE OF LESS THAN 2 SUCH A RISE IN SHORTTERM RATES IS UNLIKELY ANY UPTURN IN RATES HAS BEEN POSTPONED BY THE SOFTERTHANEXPECTED FIRSTQUARTER ECONOMIC GROWTH SAYS MR MCALINDEN WHAT'S MORE IF AS HE EXPECTS THE SLOWER GROWTH WAS DUE TO DISMAL WEATHER IN THE FIRST QUARTER GROWTH SHOULD REBOUND IN THE CURRENT QUARTER THAT IN TURN COULD LEAD TO ANOTHER RALLY IN STOCKS THAT WOULD PUSH THE DOW JONES INDUSTRIAL AVERAGE TO 3600 OR HIGHER LATER THIS SUMMER INSTITUTIONAL BUYING NUDGED STOCK PRICES HIGHER IN A VOLATILE TRADING SESSION MARKET INDEXES TOOK SEVERAL TURNS DURING THE DAY RISING THROUGH MIDAFTERNOON BEFORE RETREATING ONCE ONLY TO RECOVER AND RETREAT AGAIN THE DOW JONES INDUSTRIAL AVERAGE WHICH HAD CLIMBED MORE THAN 20 POINTS AT ONE STAGE FINISHED WITH A GAIN OF JUST 243 TO 342755 BROADER MARKET BAROMETERS POSTED LARGER CLOSING GAINS ADVANCING ISSUES LED DECLINERS NEARLY 2 TO 1 A LATE SELLOFF IN BONDS PLAYED A LARGE PART IN THE MARKET'S LATE RETREAT SELL PROGRAMS TRIGGERED BY SUDDEN DROPS IN THE STOCK INDEX FUTURES MARKET ACCELERATED THE BIG BOARD'S DECLINE GERALD SIMMONS HEAD OF INSTITUTIONAL EQUITY TRADING AT INTERSTATEJOHNSON LANE SAID SOME OF THE MARKET'S STRENGTH STEMMED FROM BUYING BY PORTFOLIO MANAGERS SPRUCING UP THEIR HOLDINGS FOR THE MONTH'S END PORTFOLIO MANAGERS OFTEN REASSESS THEIR HOLDINGS AT THE END OF EACH MONTH STANDARD & POOR'S 500 STOCK INDEX JUMPED 130 OR 030 TO 44019 WHILE THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX INCREASED 098 OR 040 TO 24346 THE DOW JONES EQUITY MARKET INDEX ROSE 138 OR 033 TO 41757 VOLUME ON THE BIG BOARD TOTALED 239110000 SHARES WITH 1210 ISSUES ADVANCING AND 669 RETREATING FOR THE WEEK THE DOW JONES INDUSTRIAL AVERAGE ROSE 1378 GENENTECH SURGED 4 3/4 TO 37 1/2 RESEARCHERS SPONSORED BY THE SOUTH SAN FRANCISCO COMPANY ISSUED A REPORT SHOWING ITS TPA DRUG IS MORE EFFECTIVE IN REDUCING THE MORTALITY RATE OF STROKE VICTIMS THAN STREPTOKINASE AN OLDER MUCH LESSEXPENSIVE DRUG THE TPA PRODUCT WHICH GENENTECH SELLS AS ACTIVASE IS SAID TO SAVE 10 MORE LIVES PER 1000 THAN DOES THE COMPETING PRODUCT WHICH IS MADE BY SEVERAL EUROPEAN COMPANIES AETNA LIFE JUMPED 3 1/8 TO 52 7/8 THE HARTFORD CONN INSURER POSTED FIRSTQUARTER EARNINGS OF 151 A SHARE WHICH INCLUDED A 25 CENT GAIN FROM THE DISPOSAL OF DISCONTINUED OPERATIONS THAT WAS LOWER THAN THE 209 A SHARE IT EARNED FROM OPERATIONS A YEAR EARLIER BUT BETTER THAN ANALYSTS HAD EXPECTED THE YEAREARLIER FIGURE INCLUDED 69 CENTS A SHARE FROM DISCONTINUED OPERATIONS PHILIPS ELECTRONICS NV JUMPED 7/8 TO 14 7/8 WHILE MATSUSHITA ELECTRIC INDUSTRIAL INCREASED 3 3/4 TO 127 1/2 THE JAPANESE CONCERN AGREED TO BUY PHILIPS'S 35 INTEREST IN THE COMPANIES' MATSUSHITA ELECTRONICS JOINT VENTURE FOR 165 BILLION MATSUSHITA WILL BECOME THE SOLE OWNER OF THE BUSINESS BETHLEHEM STEEL JUMPED 1 TO 19 5/8 AFTER THE COMPANY SAID IT WILL RAISE PRICES ON ITS PLATE METAL PRODUCTS OTHER STEELMAKERS RALLIED ALLEGHENY LUDLUM JUMPED 7/8 TO 43 USXUS STEEL ROSE 1 1/4 TO 42 3/4 AND INLAND STEEL JUMPED 3/8 TO 22 5/8 PERCENTAGE DIFFERENCE BETWEEN ACTUAL EARNINGS FROM CONTINUING OPERATIONS WHERE APPLICABLE AND ANALYSTS' AVERAGE ESTIMATED EARNINGS AMONG THE DOW JONES INDUSTRY GROUPS FOR THE FIRST QUARTER OF 1993 9305030101 930503 TECHNOLOGY MICROSOFT IS OVERWHELMED BY CALLS FOR MSDOS 60 REDMOND WASH DEMAND FOR MICROSOFT CORP'S NEW VERSION OF ITS POPULAR OPERATINGSYSTEM SOFTWARE THE MSDOS 60 IS UNEXPECTEDLY STRONG CREATING SOME PROBLEMS DEMAND HAS BEEN SO HIGH THAT THE SOFTWARE BEHEMOTH SAID IT IS UNABLE TO ANSWER ALL THE CUSTOMER CALLS SINCE THE SYSTEM WAS INTRODUCED A MONTH AGO MICROSOFT SAID IT HAS SHIPPED ABOUT THREE MILLION UNITS OF THE MSDOS 60 ABOUT TWICE THE VOLUME OF DEMAND IT HAD ANTICIPATED THE NEW VERSION DOUBLES THE AVAILABLE DISK SPACE ON PERSONAL COMPUTERS AMONG OTHER THINGS BECAUSE OF THE SHEER VOLUME OF SALES OUR SUPPORT LINES FOR CUSTOMER TELEPHONE CALLS HAVE BEEN JAMMED SAID MICROSOFT SPOKESMAN COLLINS HEMINGWAY MEANWHILE THE INFOWORLD TRADE NEWSPAPER APPEARS TODAY WITH AN ARTICLE THAT CRITICIZES THE MSDOS 60 AS HAVING A LOT OF BUGS KEVIN STREHLO EXECUTIVE EDITOR FOR TESTING AND REVIEW AT THE SAN MATEO CALIFBASED PAPER SAID HIS TESTS FOUND SUCH PROBLEMS AS INABILITY TO READ DATA SAVED ON A DISK AND PROGRAMS THAT WILL NOT RUN MICROSOFT OFFICIALS SAY THEY HAVE ENCOUNTERED NO UNUSUAL PROBLEMS IN THE MSDOS 60 AND ADD THAT IT UNDERWENT RIGOROUS TESTING BEFORE RELEASE MR HEMINGWAY SAID THAT MICROSOFT HAD BEEN INFORMED OF THE INFOWORLD RESULTS BY TELEPHONE THURSDAY AND WAS UNABLE TO IMMEDIATELY CHECK THE TESTING METHODOLOGY 9305030100 930503 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ANNTAYLOR INC AN OFFERING OF 100 MILLION OF SUBORDINATED NOTES VIA MERRILL LYNCH & CO CARDINAL REALTY SERVICES INC A FILING OF 41 MILLION COMMON SHARES UNDER A BANKRUPTCY REORGANIZATION PLAN COMMUNICATION INTELLIGENCE CORP AN OFFERING OF THREE MILLION COMMON SHARES VIA DAIWA SECURITIES AMERICA INC AND VAN KASPER & CO NORWOOD PROMOTIONAL PRODUCTS INC AN INITIAL OFFERING OF 15 MILLION COMMON SHARES VIA ALLEN & CO QVC NETWORK INC A SHELF REGISTRATION FOR AS MUCH AS 400 MILLION OF DEBT SECURITIES AND AS MUCH AS FIVE MILLION COMMON SHARES WALMART STORES INC A SHELF OFFERING OF UP TO 225 BILLION IN DEBT SECURITIES VIA GOLDMAN SACHS & CO WESTERN RESOURCES INC AN OFFERING OF 46 MILLION COMMON SHARES 9305030099 930503 TECHNOLOGY JAPANESE FOCUS ON SIMPLER CAMCORDERS BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO NEW CAMCORDERS FROM SHARP CORP AND MATSUSHITA ELECTRIC INDUSTRIAL CO HAVE CAPTURED THE FANCY OF CONSUMERS IN JAPAN AND MAY BE POISED TO DO THE SAME THING IN THE US STORES IN JAPAN SAY SALES OF CAMCORDERS UNLIKE THOSE IN THE REST OF THE ELECTRONICS MARKET HAVE BEEN STRONG IN RECENT MONTHS THEY GIVE MOST OF THE CREDIT TO A PAIR OF INNOVATIVE NEWCOMERS SHARP'S VIEWCAM AND MATSUSHITA'S PATTORU WHICH IS MARKETED UNDER THE PANASONIC BRAND NAME SHARP STARTED SHIPPING THE VIEWCAM TO THE US IN EARLY APRIL WHILE MATSUSHITA PLANS TO BEGIN SELLING THE PATTORU IN EUROPE THIS MONTH MATSUSHITA MAY ALSO RELEASE THE PATTORU IN THE US EVENTUALLY IT SAYS ONLY THAT IT IS STUDYING THE US MARKET WE THINK THE PATTORU WILL BE A BIG FACTOR IN INCREASING THE OVERALL CAMCORDER MARKET SAYS A MATSUSHITA SPOKESMAN DIVERGENT PATHS BOTH COMPANIES DESIGNED THEIR NEW CAMERAS WITH THE SAME PRINCIPLE IN MIND THAT CAMCORDERS HAVE BECOME TOO COMPLICATED FOR ORDINARY PEOPLE TO USE WITHOUT INVESTING A LOT OF TIME AND EFFORT IN THE QUEST FOR A SIMPLER PRODUCT THOUGH THE COMPANIES TOOK SHARPLY DIVERGENT PATHS AND ENDED UP WITH CAMCORDERS THAT HAVE VERY LITTLE IN COMMON SHARP TOOK THE HIGH ROAD DECIDING TO REDESIGN ITS CAMCORDER ENTIRELY IN ORDER TO ELIMINATE FEATURES THAT PUT OFF CUSTOMERS THE MAIN CASUALTY WAS THE VIEWFINDER WHICH SHARP REPLACED WITH A FOURINCH LIQUID CRYSTAL SCREEN THAT ACCURATELY DISPLAYS THE SCENE THE CAMERA IS FILMING THE RESULT IS SOMEWHAT ODDLOOKING THE 8MM VIEWCAM WHICH SHARP RELEASED IN JAPAN LAST OCTOBER MIGHT EASILY BE MISTAKEN FOR A SMALL LIQUIDCRYSTAL TELEVISION WITH A HANDHOLD ATTACHED TO ONE SIDE THE VIEWCAM IS UNUSUALLY VERSATILE BECAUSE USERS CAN PIVOT THE LENS WHICH SITS ATOP THE HANDHOLD SEPARATELY FROM THE DISPLAY THIS ARRANGEMENT ALLOWS USERS TO PLAY A VARIETY OF TRICKS WITH THE GADGET SUCH AS HOLDING IT AT ARM'S LENGTH TO FILM OVER A CROWD AT A CONCERT FOR INSTANCE WHILE TILTING THE SCREEN BACK TO WATCH IT'S EVEN POSSIBLE FOR PEOPLE TO WATCH THEMSELVES BEING FILMED BY ROTATING THE HANDHOLD 180 DEGREES THUS POINTING THE LENS IN THE SAME DIRECTION AS THE SCREEN SHARP SUPPLIES A REMOTE CONTROL FOR PEOPLE WHO WANT TO TAKE GROUP SELFPORTRAITS THE VIEWCAM'S BUILTIN SCREEN ALSO MAKES IT EASIER TO PLAY BACK MOVIES THAT HAVE JUST BEEN FILMED BY PURCHASING AN OPTIONAL TUNER USERS CAN EVEN TURN THE VIEWCAM INTO JUST WHAT IT LOOKS LIKE A TELEVISION RECEIVER MATSUSHITA TOOK A MORE CONSERVATIVE APPROACH THAN SHARP OPTING FOR A STRAIGHTFORWARD STRIPPEDDOWN VHSFORMAT DESIGN THE BOXY PATTORU LISTS FOR 84800 YEN 764 LESS THAN HALF WHAT MATSUSHITA ASKS FOR ITS FULLFEATURE MODELS TO GET SUCH SAVINGS MATSUSHITA STREAMLINED RUTHLESSLY THE COMPANY ELIMINATED SPECIAL CIRCUITRY THAT NORMALLY COUNTERS THE PICTURE JITTER THAT CAN PLAGUE SMALL HANDHELD CAMCORDERS LIKE THE PATTORU AND IT REPLACED THE AUTOMATIC ZOOM FEATURE WITH TWO SIMPLE SHOOTING MODES WIDE AND ZOOM UNLIKE CONVENTIONAL CAMCORDERS THE PATTORU CAN'T PLAY BACK RECORDED TAPES WHEN HOOKED UP TO A TELEVISION MATSUSHITA ARGUES THAT CONSUMERS WILL SACRIFICE THOSE COMPLEX FEATURES IN EXCHANGE FOR A CHEAP VIDEO CAMERA THEY CAN USE MUCH LIKE A COMPACT STILL CAMERA FOR NOW THE COMPANY SEEMS TO HAVE GUESSED CORRECTLY ONE CUSTOMER LOOKING OVER AN ARRAY OF CAMCORDERS IN ISHIMARU AN ELECTRONICS RETAILER IN TOKYO'S GAUDY AKIHABARA DISTRICT SAYS THE PATTORU WOULD BE IDEAL FOR HIS FATHER WHO ISN'T GOOD WITH MACHINES ANALYSTS SAY THE SUCCESS OF THESE TWO PRODUCTS SHOWS THAT IMAGINATIVE PRODUCTS CAN WIN OVER CONSUMERS EVEN IN A SATURATED MARKET PEOPLE IN GENERAL ARE VERY CAUTIOUS SAYS CHUCK GOTO AN ANALYST WITH SG WARBURG JAPAN INC THEY'RE ONLY WILLING TO SPEND MONEY WHEN THEY SEE SOMETHING INTERESTING AND NEW IN FACT THE VIEWCAM AND THE PATTORU ARE TWO OF THE FEW BRIGHT SPOTS IN JAPAN'S BELEAGUERED CONSUMER ELECTRONICS MARKET DEALERS SAY THAT BOTH PRODUCTS ARE SELLING WELL AND THAT THEIR OVERALL CAMCORDER SALES IN 1993 ARE RUNNING ABOVE LAST YEAR'S LEVELS DATA FROM THE ELECTRONIC INDUSTRIES ASSOCIATION OF JAPAN IN FACT SHOW THAT CAMCORDER SHIPMENTS ROSE 15 IN JANUARY AND 36 IN FEBRUARY FROM THE YEAREARLIER MONTHS THE FIRST SUCH INCREASES SINCE THE LAST QUARTER OF 1990 IT'S NOT CLEAR HOWEVER EXACTLY HOW MUCH CREDIT GOES TO THE NEW PRODUCTS MATSUSHITA'S PATTORU FOR INSTANCE JUST HIT THE SHELVES MARCH 15 AND THE COMPANY ISN'T REPORTING SALES FIGURES YET SHARP ON THE OTHER HAND SAYS THAT IT SOLD 100000 VIEWCAMS BETWEEN THE PRODUCT'S INTRODUCTION IN LATE OCTOBER AND THE END OF FEBRUARY A FIGURE THAT WOULD ACCOUNT FOR ABOUT A THIRD OF THE TOTAL CAMCORDER MARKET DURING THOSE MONTHS SHARP AND MATSUSHITA CLEARLY HAVE HIGH EXPECTATIONS FOR THE NEW CAMERAS AT CURRENT PRODUCTION RATES SHARP EXPECTS TO MAKE 360000 UNITS OF THE VIEWCAM OVER THE NEXT YEAR WHILE MATSUSHITA PROJECTS PRODUCTION OF 480000 UNITS OF THE PATTORU THAT PRODUCTION VOLUME IS EQUAL TO ABOUT THREEQUARTERS OF THE ENTIRE 1992 CAMCORDER MARKET IN JAPAN WHICH AMOUNTED TO 113 MILLION UNITS 9305030098 930503 C17 SHAKEUP APPEARS GOOD FOR MCDONNELL ASPIN FIRES 1 DISCIPLINES 3 IN PENTAGON BUT CLEARS FIRM OF MISMANAGEMENT BY THOMAS E RICKS AND JEFF COLE STAFF REPORTERS OF THE WALL STREET JOURNAL DEFENSE SECRETARY LES ASPIN'S SHAKEUP OF THE TROUBLED C17 CARGOJET PROGRAM UNDER WHICH AN AIR FORCE GENERAL WAS FIRED AND THREE OTHER PENTAGON OFFICIALS WERE DISCIPLINED APPEARS TO BE GOOD NEWS FOR MCDONNELL DOUGLAS CORP MR ASPIN STRUCK A BALANCE IN HIS ACTIONS HE WENT FAR ENOUGH TO ASSUAGE SOME OF THE C17'S CRITICS IN CONGRESS YET SAID HE SAW NO EVIDENCE THAT THE PROGRAM MAY HAVE BEEN CRIMINALLY MISMANAGED AND TOOK NO STEPS TO DISCIPLINE OR REBUKE MCDONNELL DOUGLAS BY TAKING THE FAIRLY LIMITED STEPS OF FIRING MAJ GEN MICHAEL BUTCHKO JR AND DISCIPLINING TWO OTHER GENERALS AND A CIVILIAN OFFICIAL MR ASPIN SIGNALED THAT HE IS UNHAPPY WITH HOW THE PROGRAM HAS BEEN MANAGED BUT STILL WANTS TO SEE THE C17 BUILT THE STORY OF THE C17 PROGRAM REFLECTS AN UNWILLINGNESS ON THE PART OF SOME HIGHRANKING ACQUISITION PROFESSIONALS TO ACKNOWLEDGE PROGRAM DIFFICULTIES AND TO TAKE DECISIVE ACTION MR ASPIN SAID IN A MEMO TO THE AIR FORCE IN A SEPARATE STATEMENT HE ADDED GEN BUTCHKO WAS THE PERSON IN CHARGE AS PROGRAM DIRECTOR AND BEARS THE CHIEF RESPONSIBILITY GEN BUTCHKO WHO IS NOW THE RANKING OFFICER AT EGLIN AIR FORCE BASE IN FLORIDA WILL RETIRE AT THE END OF THIS MONTH A YEAR EARLIER THAN PLANNED HE SAID YESTERDAY THAT HE FELT EXONERATED BY MR ASPIN'S FINDING THAT NO WRONGDOING OCCURRED HE REJECTED THE FINDING THAT HE LACKED MANAGEMENT JUDGMENT AND CITED THE FACT THAT THE BASE HE COMMANDS IS TO RECEIVE AN AWARD THIS MONTH AS THE BESTRUN AIR FORCE BASE IN THE SYSTEM MY LOYALTY TO THE AIR FORCE IS ABSOLUTE AND I WOULD NEVER DO ANYTHING TO EMBARRASS IT HE SAID MR ASPIN'S ACTIONS GENERALLY WERE INTERPRETED AT THE PENTAGON AS A SIGN THAT HE WANTS TO SEE THE C17 PROGRAM COMPLETED BUT A MINORITY VIEW CONTENDS THAT WHEN VIEWED IN THE LARGER CONTEXT OF THE LOOMING DECISIONS ABOUT AIRCRAFT PROGRAMS THE MOVE ACTUALLY MAY FORESHADOW BAD NEWS FOR MCDONNELL DOUGLAS IN THIS VIEW THE PENTAGON ALREADY WORRIED BY THE FINANCIAL STATE OF THE COMPANY WANTS TO KEEP THE C17 PROGRAM GOING BECAUSE SECRETARY ASPIN LATER THIS YEAR MAY WANT TO CANCEL THE F/A18E/F PROGRAM IT'S GENERALLY AGREED THAT THE PENTAGON WON'T FUND ALL THE NEW AIRCRAFT PROGRAMS PLANNED BY THE AIR FORCE AND NAVY AND A DECISION IS EXPECTED LATER THIS YEAR ON WHICH PROGRAMS TO TERMINATE ONE MINORITY SCHOOL OF THOUGHT HOLDS THAT THE F/A18E/F A MODIFICATION OF MCDONELL DOUGLAS'S EXISTING F/A18 JET FIGHTER MIGHT BE CUT WHICH WOULD BE DEVASTATING TO THE COMPANY AT MCDONNELL DOUGLAS THE NATION'S LARGEST DEFENSE CONTRACTOR MR ASPIN'S ACTION WAS GREETED PUBLICLY WITH RESTRAINT BUT SOME MANAGERS PRIVATELY BELIEVE THAT THE OFFICIALS WERE UNFAIRLY SINGLED OUT THESE MANAGERS ARE HOPEFUL THE PROGRAM NOW WILL PROCEED WITH LESS CONTROVERSY AND CONGRESSIONAL RESISTANCE ASKED WHETHER MR ASPIN'S ACTION COULD LEND MOMENTUM TO FURTHER GOVERNMENT CUTBACKS IN FUNDING FOR MCDONNELL DOUGLAS OR THE C17 PROGRAM JOHN MCDONNNELL THE COMPANY'S CHAIRMAN SAID THAT HOPEFULLY ACTIONS TAKEN RELATIVE TO THE MANAGEMENT OF THE PROGRAM WON'T HAVE AN IMPACT AS TO THE NEED FOR THE AIRCRAFT FOLLOWING LARGE LOSSES MCDONNELL DOUGLAS HAS SAID THE C17 PROGRAM WAS CLOSE TO BREAKEVEN DURING THE FIRST QUARTER OF 1993 FOR THE FIRST TIME IN TWO YEARS AND IS EXPECTED TO BE PROFITABLE THIS YEAR AT THE COMPANY'S ANNUAL MEETING FRIDAY AT ITS ST LOUIS HEADQUARTERS MCDONNELL DOUGLAS OFFICERS FIELDED NUMEROUS QUESTIONS FROM EMPLOYEES AND RETIREES WORRIED BY CORPORATE ACTIONS LAST YEAR TO END CURRENT RETIREE HEALTHCARE PLANS AFTER 1996 MR MCDONNELL SAID THAT GIVEN UNCERTAINTIES IN NATIONAL HEALTHCARE PLANNING THE COMPANY CAN ONLY ASSURE THAT IT WILL FIND SOME WAY TO MAKE QUALITY AFFORDABLE HEALTH CARE AVAILABLE IN SOME FORM IN OTHER ACTION AT THE MEETING AN EMPLOYEE PROPOSAL TO PUT AN EMPLOYEE REPRESENTATIVE ON THE COMPANY BOARD WAS DEFEATED THE PROPOSAL WON SUPPORT FROM 10550000 SHARES OR ABOUT 37 OF THE SHARES VOTED ABOUT 36 OF MCDONNELL DOUGLAS STOCK IS OWNED BY EMPLOYEE SAVINGS AND INVESTMENT PLANS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FRIDAY MCDONNELL DOUGLAS CLOSED AT 6025 UP 375 CENTS 9305030097 930503 DIVIDEND NEWS TEAM INC TEAM INC HOUSTON THE PROVIDER OF ENVIRONMENTAL SERVICES SAID ITS BOARD DECIDED NOT TO AUTHORIZE A REGULAR QUARTERLY DIVIDEND FOR THE THIRD QUARTER OF FISCAL 1993 BECAUSE OF LOWER THAN ANTICIPATED PROFIT FOR THE PERIOD DUE TO WHAT IT DESCRIBED AS CURRENT BUSINESS AND ECONOMIC CONDITIONS TEAM'S LATEST DIVIDEND PAYMENT WAS TWO CENTS IN MARCH IN A PRESS RELEASE THE COMPANY SAID THAT THE BOARD WILL PERIODICALLY REEVALUATE CONDITIONS TO DETERMINE WHEN TEAM WILL RESUME PAYMENT OF ITS QUARTERLY FOR ITS THIRD QUARTER ENDED FEB 28 TEAM INC REPORTED A NET INCOME OF 464000 OR NINE CENTS A SHARE ON REVENUE OF 20 MILLION COMPARED WITH PROFIT FROM CONTINUING OPERATIONS OF 617000 OR 12 CENTS A SHARE ON REVENUE OF 182 MILLION A YEAR EARLIER 9305030096 930503 BUSINESS BRIEF FUJI HEAVY INDUSTRIES LTD SUBARU UNIT CITES FUEL PIPE FOR IMPREZA WAGON RECALL SUBARU OF AMERICA INC SAID IT WILL RECALL 3400 OF ITS 1993 IMPREZA SPORT WAGON MODELS BECAUSE OF A FAULTY FUEL AIRVENT PIPE SUBARU A UNIT OF FUJI HEAVY INDUSTRIES LTD OF TOKYO SAID THE WAGONS MAY LEAK FUEL IF A ROLLOVER OCCURS AFTER A REAREND COLLISION A FIRE COULD RESULT IF THE LEAKED FUEL IS IGNITED THE AUTO MAKER SAID IT DISCOVERED THE PROBLEM DURING ROUTINE AUDIT TESTING SUBARU SAID IT ISN'T AWARE OF ANY ACCIDENTS OR INJURIES RELATED TO THE DEFECTIVE FUEL AIRVENT PIPE THE AUTO MAKER INTRODUCED THE IMPREZA SPORT WAGON IN FEBRUARY SUBARU OF AMERICA INC SAID IT IS RECALLING 3400 OF ITS 1993 MODEL ALLWHEEL DRIVE IMPREZA SPORT WAGONS BECAUSE OF A FAULTY FUEL AIRVENT PIPE AN ARTICLE YESTERDAY DIDN'T SPECIFY THAT THE RECALL COVERS ONLY WAGONS EQUIPPED WITH ALLWHEEL DRIVE 9305030095 930503 PHILADELPHIA EXCHANGE HAD '92 PROFIT VS '91 LOSS NEW YORK THE PHILADELPHIA STOCK EXCHANGE BUOYED BY STRONG GAINS IN CURRENCYOPTION AND STOCK TRADING REPORTED A PROFIT FOR 1992 REVERSING A YEAREARLIER LOSS IN ITS 203TH ANNUAL REPORT THE EXCHANGE SAID IT EARNED 161000 ON CONSOLIDATED NET INCOME OF 376 MILLION LAST YEAR COMPARED WITH A LOSS OF 982000 ON CONSOLIDATED NET INCOME OF ALMOST 33 MILLION THE YEAR EARLIER THE IMPORTANCE OF THE EXCHANGE'S CURRENCY MARKETS WAS UNDERSCORED IN SEPTEMBER BY THE NEARBREAKDOWN OF THE EUROPEAN MONETARY SYSTEM AND RESULTING DEVALUATION OF SEVERAL EUROPEAN CURRENCIES THE EXCHANGE SAID IN ITS ANNUAL REPORT AMIDST THE CHAOS MANY INVESTORS FOUND THE PHILADELPHIA STOCK EXCHANGE TO BE A SAFE HAVEN EQUITY TRADING VOLUME ALSO HIT A RECORD LAST YEAR AS 11 BILLION SHARES CHANGED HANDS A 24 GAIN FROM 1991 9305030094 930503 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED TWO NEW LISTINGS BOTH INITIAL PUBLIC OFFERINGS THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET ANNOUNCED EIGHT NEW LISTINGS INCLUDING SIX INITIAL PUBLIC OFFERINGS AND THE AMERICAN STOCK EXCHANGE ANNOUNCED ONE NEW LISTING ON ITS EMERGING COMPANY MARKETPLACE THE BIG BOARD SAID IT BEGAN TRADING THE FOLLOWING INITIAL PUBLIC OFFERINGS GEON CO INDEPENDENCE OHIO A PRODUCER OF POLYVINYL CHLORIDE RESINS AND COMPOUNDS UNDER GON AND ROYAL CARIBBEAN CRUISES LTD MONROVIA LIBERIA A PROVIDER OF CRUISES IN THE CARIBBEAN MARKET THE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC ADDED THE FOLLOWING INITIAL PUBLIC OFFERINGS TO ITS NASDAQ NATIONAL MARKET O'REILLY AUTOMOTIVE INC SPRINGFIELD MO A SPECIALTY RETAILER AND SUPPLIER OF AUTOMOTIVE PARTS UNDER ORLY ACTION PERFORMANCE COS TEMPE ARIZ A MARKETER OF DIECAST MINIATURE REPLICAS OF RACING VEHICLES UNDER ACTN CTL CREDIT INC SANTA BARBARA CALIF A COMPANY ORGANIZED FOR THE PURPOSE OF ACQUIRING CALIFORNIA THRIFT & LOAN UNDER CTLI INTERLINQ SOFTWARE CORP KIRKLAND WASH A PRODUCER MARKETER SELLER AND SUPPORTER OF SOFTWARE FOR RESIDENTIAL MORTGAGE LENDERS UNDER INLQ JABIL CIRCUIT INC ST PETERSBURG FLA A SUPPLIER OF MANUFACTURING SERVICES FOR CIRCUIT BOARD ASSEMBLIES AND SYSTEMS UNDER JBIL AND OLD AMERICA STORES INC HOWE TEXAS A SPECIALTY RETAILER OF HOME DECORATING PRODUCTS AND ARTS AND CRAFTS ITEMS UNDER OASI TWO COMPANIES ALSO MOVED FROM THE NASDAQ SMALLCAP MARKET TO THE NATIONAL MARKET SYSTEM STATE FINANCIAL SERVICES CORP HALES CORNER WIS A BANK HOLDING COMPANY UNDER SFSW AND CPI AEROSTRUCTURES INC RONKONKOMA NY AN AIRCRAFT PARTS CONCERN UNDER CPIA THE AMERICAN STOCK EXCHANGE SAID ITS EMERGING COMPANY MARKETPLACE BEGAN TRADING THE COMMON AND PREFERRED SHARES OF ENCORE MARKETING INTERNATIONAL INC LANHAM MD A MARKETER OF FEEBASED MEMBERSHIP PROGRAMS UNDER EMI EC AND EMIPREC FOR COMMON AND PREFERRED RESPECTIVELY THE CHICAGO BOARD OPTIONS EXCHANGE BEGAN TRADING THE FOLLOWING OPTIONS COMPUWARE CORP FARMINGTON HILLS MICH CONTROL DATA SYSTEMS INC ARDEN HILLS MINN THE CBOE WILL BEGIN TRADING OPTIONS ON THE FOLLOWING COMPANIES MAY 3 AMAX GOLD INC GOLDEN COL ANDREW CORP ORLAND PARK ILL CALIFORNIA FEDERAL BANK LOS ANGELS ELECTRONICS FOR IMAGING INC SAN BRUNO CALIF OXFORD HEALTH PLANS INC DARIEN CONN AND SUPERMAC TECHNOLOGY INC SUNNYVALE CALIF THE CBOE WILL BEGIN TRADING THE FOLLOWING OPTIONS ON MAY 4 PARAGON TRADE BRANDS INC FEDERAL WAY WASH DR PEPPER/SEVENUP COS DALLAS AND THE CBOE WILL BEGIN TRADING OPTIONS ON WELLPOINT HEALTH NETWORKS INC WOODLAND HILLS CALIF MAY 5 THE AMERICAN STOCK EXCHANGE WILL BEGIN TRADING OPTIONS ON DR PEPPER/SEVENUP COS ON TUESDAY MAY 4 AND OPTIONS ON WELLPOINT HEALTH NETWORKS INC ON WEDNESDAY MAY 5 THE PACIFIC STOCK EXCHANGE WILL BEGIN TRADING OPTIONS ON DR PEPPER/SEVENUP COS ON TUESDAY MAY 4 9305030093 930503 INTERNATIONAL SINGAPORE LIFTS CIRCULATION LIMITS ON ASIAN JOURNAL SINGAPORE THE GOVERNMENT WILL ALLOW THE ASIAN WALL STREET JOURNAL TO INCREASE CIRCULATION IN THE REPUBLIC TO 5000 A DAY FROM 3500 AND STATION A REPORTER THERE BOTH AS OF JULY 1 THE MINISTRY OF INFORMATION SAID THE GOVERNMENT CUT THE ASIAN JOURNAL'S DAILY CIRCULATION IN SINGAPORE TO 400 IN FEBRUARY 1987 AFTER ACCUSING THE NEWSPAPER OF INTERFERING IN DOMESTIC POLITICS AT THAT TIME THE NEWSPAPER BASED IN HONG KONG WAS SELLING ABOUT 5000 COPIES A DAY IN SINGAPORE DOW JONES & CO THE PAPER'S PUBLISHER WITHDREW THE REMAINING CIRCULATION IN OCTOBER 1990 AS SINGAPORE PREPARED REGULATIONS COVERING DISTRIBUTION OF OVERSEAS PUBLICATIONS SINGAPORE HASN'T ALLOWED THE ASIAN JOURNAL TO STATION A CORRESPONDENT THERE SINCE 1988 ITS REPORTERS HAVE BEEN PERMITTED TO MAKE BRIEF VISITS SINCE OCTOBER 1991 DOW JONES BASED IN NEW YORK ALSO PUBLISHES THE WALL STREET JOURNAL THE WALL STREET JOURNAL EUROPE BARRON'S MAGAZINE AND OTHER PERIODICALS ELECTRONIC BUSINESS INFORMATION SERVICES AND COMMUNITY NEWSPAPERS 9305030092 930503 ENTERPRISE NUTRI/SYSTEM FRANCHISEES LIVE FRANCHISER'S NIGHTMARE FINANCIAL CRISIS AT WEIGHTLOSS CHAIN FILTERS DOWN TO INDIVIDUAL CENTERS BY JEFFREY A TANNENBAUM AND LOURDES LEE VALERIANO STAFF REPORTERS OF THE WALL STREET JOURNAL ONLY A FEW SHORT YEARS AGO NUTRI/SYSTEM INC WAS BURSTING WITH OPTIMISM BUT TODAY THE ROSY VIEW AT THE BLUE BELL PA WEIGHTLOSS CONCERN IS GONE A SEVERE FINANCIAL CRISIS THAT HIT THE COMPANY LAST WEEK REMAINS UNRESOLVED LEAVING FRANCHISEES AS WELL AS OTHERS SCARED FRANCHISEE RICHARD GORDON YESTERDAY SAID ONE INVESTMENT GROUP HAD WORKED OUT A TENTATIVE DEAL TO BUY THE COMPANY BUT THE DEAL COLLAPSED DURING THE WEEKEND HE AND OTHER FRANCHISEES SAID THEY EXPECTED MEETINGS BETWEEN BANKERS AND TWO NUTRI/SYSTEM BIDDERS TO TAKE PLACE TODAY COMPANY OFFICIALS COULDN'T BE REACHED FOR COMMENT AT LEAST FOR NOW THE FRANCHISER'S CRISIS IS A NIGHTMARE FOR FRANCHISEES TOO AND EXPERIENCE SHOWS THAT THE NIGHTMARE CAN CONTINUE EVEN IF THE IMMEDIATE CRISIS IS RESOLVED AMONG OTHER FACTORS FRANCHISEES DEPEND HEAVILY ON A RELATIONSHIP WITH FRANCHISERS THAT IS SUDDENLY CLOUDED WITH UNCERTAINTY IF NEW OWNERS TAKE CONTROL LIKE MOST OTHER FRANCHISEES THOSE AT NUTRI/SYSTEM HAD ASSUMED THAT WORKING WITH A FRANCHISER WOULD MAKE THEIR BUSINESSES MORE SECURE BUT SUDDENLY THEIR FRANCHISER HAS ALMOST TOTALLY STOPPED FUNCTIONING FRANCHISEES CLEARLY WORRY ABOUT THE COMPANY'S FUTURE AS WELL AS THE PROBLEMS THAT HAVE DEVELOPED IN THE LAST COUPLE OF YEARS IN MADISON WIS FRANCHISEE NU/IMAGE INC NOW OPERATES ONLY THREE CENTERS DOWN FROM EIGHT IN 1989 OUR PATTERN IN FRANCHISED CENTERS HAS FOLLOWED THE FRANCHISER'S PATTERN SAYS OWNER JACK OVERTON WHO IS ALSO HEAD OF A NUTRI/SYSTEM FRANCHISEE ORGANIZATION FRANCHISEES SAY THEY HAD TO CHIP IN 27 MILLION IN DISTRESS FUNDS LAST YEAR TO SHORE UP THE FRANCHISER'S FLAGGING ADVERTISING EFFORTS AND DAVID SKULNIK WHO OWNS 61 FRANCHISED CENTERS IN NEW JERSEY AND ILLINOIS SAYS HE ALSO NOTICED A DECLINE IN FIELD SUPPORT FROM THE FRANCHISER ABOUT A YEAR AGO YET THOSE HEADACHES NOW SEEM MINOR NEXT TO THE EMERGENCY THAT DEVELOPED LAST WEEK ON THURSDAY NUTRI/SYSTEM SAID IT WAS ABRUPTLY CLOSING 283 COMPANYOWNED OUTLETS AFTER ITS BANKS SEIZED THE COMPANY'S CASH FRANCHISEES SAY NUTRI/SYSTEM HAD BEEN UNABLE TO SERVICE ITS HEAVY DEBT LOAD BELIEVED TO EXCEED 40 MILLION EVEN SO THE TIMING OF THE BANKS' MOVE CAME AS A SHOCK TO THE BOTH THE COMPANY AND ITS FRANCHISEES WE CALL THEM THE BANK GROUP FROM HELL SAYS FRANCHISEE MR GORDON A MEMBER OF A PHOENIX INVESTMENT GROUP THAT RUNS 86 NUTRI/SYSTEM FRANCHISES IN 11 STATES THE LENDERS' LEADER THE FIDELITY BANK UNIT OF FIRST FIDELITY BANCORP DECLINED TO EXPLAIN THE GROUP'S ACTIONS PUBLICLY IN NEED OF A SAVIOR NUTRI/SYSTEM STEPPED UP TALKS WITH POSSIBLE NEW OWNERS THAT BEGAN SEVERAL MONTHS AGO ACCORDING TO FRANCHISEES THEY SAY THE FRANCHISER NEEDS AN EMERGENCY TRANSFUSION OF AT LEAST 20 MILLION IN WORKING CAPITAL SOME FRANCHISEES HAVE BEEN PREDICTING A SALE OR RESTRUCTURING SOON NEITHER CHAIRMAN ALBERT J DIMARCO NOR OTHER TOP OFFICIALS OF NUTRI/SYSTEM COULD BE REACHED FOR COMMENT A PUBLIC RELATIONS AIDE DIDN'T RETURN PHONE CALLS CHICAGO INVESTOR MICHAEL E HEISLEY WHOSE HEICO ACQUISITIONS WAS SAID TO BE ONE OF THE BIDDERS FOR NUTRI/SYSTEM DECLINED TO COMMENT MEANWHILE ABOUT 300 SMALLER COMPANIES TOGETHER OWNING SOME 950 NUTRI/SYSTEM OUTLETS THROUGH FRANCHISE AND JOINTVENTURE ARRANGEMENTS WERE PLUNGED INTO UNCERTAINTY AS WELL NUTRI/SYSTEM FRANCHISEES PAY FEES AND ROYALTIES IN RETURN FOR USING THE SYSTEM'S BUSINESS FORMAT AND PRODUCTS LIKE FRANCHISEES IN OTHER SYSTEMS NUTRI/SYSTEM FRANCHISEES RELY HEAVILY ON THE FRANCHISER FOR SUPPORT IN PARTICULAR A BIG SOURCE OF FRANCHISEES' INCOME IS AN EXCLUSIVE LINE OF DIET FOODS WHICH THE FRANCHISER HAS DISTRIBUTED THROUGH ITS FIVE US WAREHOUSES SOME FRANCHISEES SAY THEIR FOOD ON HAND WILL RUN OUT IN A COUPLE OF WEEKS UNLESS NUTRI/SYSTEM CAN RESUME NORMAL OPERATIONS BEFORE THEN FOUNDED IN 1971 NUTRI/SYSTEM GREW RAPIDLY FOR YEARS IT AND SEVERAL OTHER SUCH CHAINS ATTRACTED A SOMETIMES ZEALOUS FOLLOWING OF CONSUMERS NUTRI/SYSTEM ENCOURAGES CUSTOMERS TO VISIT ITS CENTERS ONCE OR TWICE A WEEK AND TO EAT ITS FOOD AT HOME SOME FOLLOWERS RUN UP BIG TABS SHARON SALIT A HEALTHCARE ADMINISTRATOR IN NEW YORK RECALLS THAT A CLOSE ACQUAINTANCE THREE YEARS AGO RAN UP 10000 IN CREDITCARD BILLS AND THEN HAD TROUBLE PAYING WE THOUGHT SHE WAS INTO GAMBLING OR TELEPHONE SEX MS SALIT SAYS ACTUALLY IT WAS NUTRI/SYSTEM FOUNDER HAROLD KATZ NOW OWNER OF THE PHILADELPHIA 76ERS BASKETBALL TEAM DEPARTED IN 1986 AFTER OTHER EXECUTIVES LED A LEVERAGED BUYOUT OF THE FRANCHISER FRANCHISEES SAY THE NEW OWNERS BORROWED HEAVILY AND FOCUSED ON EXPANSION EXPECTING TO SERVICE DEBT FROM THE PROCEEDS OF A GROWING BUSINESS THERE WAS A FEELING THAT YOU COULD DO GOOD AND BE PROFITABLE AT THE SAME TIME SAYS JAMES KEMPER MILLARD A FORMER NUTRI/SYSTEM MARKETING EXECUTIVE WHO NOW IS A CONSULTANT BASED IN EXTON PA NUTRI/SYSTEM HOWEVER FELL UNDER FIERCE ATTACK AS COMPETITORS' OUTLETS PROLIFERATED INDUSTRY PRICES WEAKENED AND WAVES OF NEGATIVE PUBLICITY TOOK A TOLL IN LAWSUITS SEVERAL VICTIMS OF GALLBLADDER DISEASE TRIED TO BLAME THEIR NUTRI/SYSTEM DIETS THE FRANCHISER WON ALL OF THE 18 SUITS THAT WENT TO TRIAL AND SETTLED HUNDREDS MORE OUT OF COURT ACCORDING TO DIET BUSINESS BULLETIN A VALLEY STREAM NY NEWSLETTER MEANWHILE GOVERNMENT REGULATORS AND OTHER CRITICS HAVE BROADLY ATTACKED THE WEIGHTLOSS INDUSTRY IN PART OVER ADVERTISING CLAIMS ABOUT HOW FAST WEIGHT CAN BE SHED AND HOW LONG IT CAN BE KEPT OFF AS A RESULT SYSTEMWIDE SALES FOR NUTRI/SYSTEM HAVE PLUNGED DIET BUSINESS BULLETIN ESTIMATES THAT SUCH SALES PEAKED AT MORE THAN 11 BILLION FOR 1991 AND FELL 27 TO 798 MILLION LAST YEAR NOW THEY ARE RUNNING AT A RATE OF LITTLE MORE THAN 500 MILLION A YEAR SOME FRANCHISEES CLAIM BESIDES BEING SADDLED WITH DEBT THE FRANCHISER IS BURDENED WITH LONGTERM LEASES ON MONEYLOSING STORES INCLUDING UNITS IT CLOSED BUT STILL OWES RENT ON FRANCHISEES SAY THE FRANCHISEES BOAST THAT THEY HAVE ADJUSTED TO THE CHANGED CONDITIONS BETTER THAN THEIR FRANCHISER HAS FRANCHISEES HAVE DONE A FAR BETTER JOB OF OPERATING THEIR CENTERS THAN THE COMPANY HAS SAYS MR OVERTON WHO HEADS A NUTRI/SYSTEM FRANCHISEE ORGANIZATION CALLED NSF CORP CHARLES MATTESON WHO OWNS 14 FRANCHISES IN CONNECTICUT AND SOUTH CAROLINA SAYS HE CUT OVERHEAD COSTS SUCH AS THIRDPARTY CLEANING SERVICE AND RENEGOTIATED HIS LEASES THOUGH NO BUSINESS OWNER WELCOMES UNCERTAINTY THE FRANCHISEES EXPRESS HOPE THAT THE FRANCHISER WILL EMERGE ALL THE STRONGER UNDER NEW OWNERS SAYS MR OVERTON FRANCHISEES ARE GOING TO BE VERY HAPPY IF A NEW OWNER COMES ON THE SCENE AND DOES THINGS RIGHT 9305030091 930503 LAW JURY REJECTS CLAIM THAT POWER LINES CAUSED CANCER BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL SAN DIEGO IN A SETBACK TO COURTROOM ATTEMPTS TO LINK ELECTRICAL CURRENT AND CANCER A JURY REJECTED A COUPLE'S CLAIM THAT POWER LINES OVER THEIR HOME CAUSED THEIR YOUNG DAUGHTER TO DEVELOP KIDNEY TUMORS THE VERDICT IN FAVOR OF SAN DIEGO GAS & ELECTRIC CO RESOLVED THE NATION'S FIRST JURY TRIAL ON THE ISSUE OF WHETHER UTILITIES CAN BE HELD RESPONSIBLE FOR ILLNESSES THAT SOME RESEARCHERS SAY ARE RELATED TO ELECTROMAGNETIC FIELDS THREE YEARS AGO BOEING CO PAID MORE THAN 500000 TO SETTLE A SUIT BY A FORMER EMPLOYEE WHO CLAIMED THAT HIS LEUKEMIA WAS CAUSED BY EXPOSURE TO ELECTROMAGNETIC FIELDS OR EMFS IN THE SAN DIEGO GAS CASE TED AND MICHELE ZUIDEMA CONTENDED THE UTILITY BECAME AWARE AS EARLY AS 1986 OF POTENTIAL HEALTH HAZARDS FROM MAGNETIC FIELDS PRODUCED BY ELECTRIC CURRENT AND WAS NEGLIGENT IN FAILING TO WARN CUSTOMERS BUT THE JURY FOUND THERE WASN'T ENOUGH SCIENTIFIC DATA AT THE TIME FIVEYEAROLD MALLORY ZUIDEMA WAS BORN TO HOLD SAN DIEGO GAS LIABLE FOR FAILURE TO WARN THE PANEL WHICH DELIBERATED FOR ONLY FOUR HOURS DIDN'T REACH THE QUESTION OF WHETHER POWER LINES ACTUALLY CAUSED THE GIRL'S RARE CONGENITAL CONDITION ABOUT A DOZEN SIMILAR PERSONALINJURY LAWSUITS ARE PENDING ELSEWHERE IN THE COUNTRY WHILE VERDICTS DON'T SET LEGAL PRECEDENT BECAUSE THEY ADDRESS ONLY THE FACTS IN A GIVEN CASE LAWYERS WHO REPRESENT UTILITY COMPANIES SAID THE SAN DIEGO JURY'S DECISION IS LIKELY TO SEND A MESSAGE TO POTENTIAL FUTURE LITIGANTS THIS SHOULD DISCOURAGE PLAINTIFFS' LAWYERS WHO THINK THEY WILL HAVE AN EASY TIME BRINGING THESE CASES SAID TOM WATSON A WASHINGTON LAWYER WHO IS DEFENDING A NUMBER OF UTILITIES AND MAKERS OF ELECTRONIC DEVICES IN OTHER PERSONALINJURY EMF SUITS SEVERAL POPULATION STUDIES HAVE INDICATED THERE MAY BE SOME LINK BETWEEN EMFS AND VARIOUS FORMS OF CANCER BUT NONE HAVE BEEN CONCLUSIVE A SPOKESWOMAN FOR SAN DIEGO GAS SAID THE VERDICT REINFORCES WHAT WE'VE SAID ALL ALONG THAT THERE IS NO EVIDENCE THAT POWER LINES CAUSED THIS LITTLE GIRL'S CANCER MICHAEL WITHEY THE ZUIDEMAS' LAWYER AND HEAD OF A NATIONWIDE GROUP OF LAW FIRMS BRINGING EMF LAWSUITS SAID THE VERDICT IS NOT THE END OF THE STORY AND HE PLANS TO PURSUE OTHER CASES SO MUCH SCIENTIFIC EVIDENCE HAS COME IN SINCE 1986 THE RELEVANT TIME FRAME OF THIS CASE THAT WE DON'T SEE THIS AS A MAJOR SETBACK IN PROVING THAT POWER LINES CAUSE CHILDHOOD CANCER AND IN TRYING TO CHANGE THE POWER INDUSTRY'S CONDUCT 9305030090 930503 PROPOSAL TO EXPLOIT VENEZUELA GAS SUPPLY IS SENT TO LAWMAKERS SPECIAL TO THE WALL STREET JOURNAL CARACAS VENEZUELA A PROPOSED 56 BILLION INTERNATIONAL JOINT VENTURE TO EXPLOIT VENEZUELA'S HUGE NATURAL GAS RESERVES WAS SENT TO CONGRESS FOR ITS APPROVAL THE STATE NEWS AGENCY VENPRES REPORTED CONGRESS WHICH HAS THE FINAL SAY IS EXPECTED TO PASS THE CRISTOBAL COLON PROJECT BEFORE IT WRAPS UP THIS YEAR'S SESSIONS AT THE END OF JULY ENERGY AND MINES MINISTER ALIRIO A PARRA SAID ACCORDING TO VENPRES THE PROJECT AIMS TO DEVELOP AN ESTIMATED 32 BILLION CUBIC FEET OF OFFSHORE NATURAL GAS RESERVES IN THE CONTINENTAL SHELF NORTH OF THE PARIA PENINSULA IN NORTHEASTERN VENEZUELA FACING TRINIDAD AND TOBAGO UNDER A PROPOSED CONTRACT VENEZUELA'S STATE OIL COMPANY WOULD HAVE A 33 SHARE AND CONTROL THE MAJOR DECISIONS FOREIGN PARTNER SHELL OIL CO WOULD HAVE A 30 SHARE AND BE THE TECHNOLOGICAL LEADER EXXON CORP WOULD HAVE A 29 SHARE AND MITSUBISHI 8 IT'S ESTIMATED THAT INTERNATIONAL BANKS WOULD SUPPLY AT LEAST 60 OF THE FINANCING MR PARRA WAS QUOTED AS SAYING 9305030089 930503 DOLE CLINTON SWAP SNIPES OVER FAILED STIMULUS PLAN WASHINGTON SEN ROBERT DOLE SAID PRESIDENT CLINTON IS NOT ACCURATE IN HIS ASSERTION THAT THE KANSAS REPUBLICAN SOUGHT A PORTION OF THE STIMULUS PACKAGE THAT DIED IN A SENATE FILIBUSTER MR CLINTON IN REMARKS AT THE WHITE HOUSE CORRESPONDENTS DINNER HERE SAID HE READ IN THE WALL STREET JOURNAL ABOUT A SENATOR FROM KANSAS WHO ASKED FOR 23 MILLION OF THAT MONEY TO CONVERT A SENIOR CITIZENS CENTER TO A BOAT HOUSE IN KANSAS THE PRESIDENT WHO HAD DEFENDED THE STIMULUS PACKAGE AGAINST REPUBLICAN CHARGES THAT IT WAS FILLED WITH WASTEFUL SPENDING MOCKINGLY APOLOGIZED TO SEN DOLE MR CLINTON SAID THE SENATOR WAS RIGHT AFTER ALL SEN DOLE IN AN APPEARANCE YESTERDAY ON ABC NEWS'S THIS WEEK WITH DAVID BRINKLEY SAID HE DIDN'T KNOW ANYTHING ABOUT IT IT MUST HAVE BEEN ARKANSAS MR DOLE SAID NOTHING LIKE THAT IS HAPPENING IN KANSAS HE ADDED THE ACCURATE STORY IS WE DIDN'T ASK FOR IT BUT EVEN IF YOU ASK FOR IT IT WAS PROBABLY PAID FOR SEN DOLE THEN SAID HE HAD NO RECOLLECTION OF ASKING FOR THE MONEY AND HE CAUTIONED PRESIDENT CLINTON THE PRESIDENT SHOULDN'T JUST BELIEVE EVERYTHING HE READS IN THE WALL STREET JOURNAL EXCEPT ON THE EDITORIAL PAGE THE JOURNAL REPORTED FRIDAY THAT DEMOCRATS WERE GLOATING ABOUT A LETTER FROM MR DOLE TO THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT SEEKING FUNDING FOR A BOAT HOUSE IN WICHITA THE JOURNAL DIDN'T PUT A DOLLAR AMOUNT ON THE REQUEST 9305030087 930503 LEISURE & ARTS TELEVISION POLITICAL CORRECTNESS INVADES OLD WEST BY DOROTHY RABINOWITZ IT'S TIME TO LOOK BACK AND PONDER SOME OF THE WEIGHTIER QUESTIONS OF THE TV SEASON THE FIRST THAT OCCURS IS WHETHER DR QUINN MEDICINE WOMAN CBS 89 PM EDT SATURDAY COULD POSSIBLY BE AS BAD AS REVIEWERS SAY AND THE ANSWER IS YES TWO OF THE KINDER CRITICS HAVE CALLED IT A DOG OF A SHOW AND THE POLITICALLY CORRECT LITTLE HOUSE ON THE PRAIRIE' NEITHER DESCRIPTION IS FAR OFF THE MARK BUT THE SHOW IS ALSO DOING VERY WELL IN THE RATINGS AND RANKS NO 23 AMONG PRIMETIME SHOWS DR QUINN IN SHORT IS MAKING CBS VERY HAPPY AS BROOKLYN BRIDGE AN INFINITELY SUPERIOR PROGRAM ALSO SET IN THE PAST DID NOT AT LEAST IN TERMS OF RATINGS WHICH ARE AS WE HAVE ALL COME TO KNOW THE ONLY THING THAT COUNTS DR QUINN JANE SEYMOUR OR MIKE AS SHE IS KNOWN PRACTICES IN A FRONTIER TOWN SEETHING WITH ALL SORTS OF ILLIBERAL PREJUDICES INDIANS ESPECIALLY THOSE BRANDISHING WEAPONS OF WAR ARE NOT POPULAR EXCEPT WITH DR QUINN GEN GEORGE ARMSTRONG CUSTER REPRESENTED HERE AS A FIGURE SPAWNED FROM THE BOWELS OF HELL A CROSS BETWEEN ADOLF EICHMANN AND HANNIBAL LECTER IS ON HAND AS THE PRIME EXEMPLAR OF THE SAVAGE WHITE MAN DR MIKE NEEDLESS TO SAY STANDS TALL AGAINST HIM AND OTHER LOCAL MANIFESTATIONS OF INIQUITY IN ONE EARLY CHAPTER OF THE SERIES WE GOT TO KNOW THE NATURE OF DR MIKE'S SOCIAL CONSCIENCE A COMPUTERLIKE ORGAN CAPABLE OF SPITTING OUT A SERMONETTE A SECOND WHEN ONE OF HER YOUNG CHARGES INQUIRES ABOUT A LONG LINE OF FOREIGNLOOKING PEOPLE DR MIKE SAYS WE'RE ALL IMMIGRANTS SOME OF US JUST CAME TO AMERICA SOONER A BLACK MAN HOVES INTO VIEW CLICK DR MIKE OBSERVES THAT HE DID NOT COME WILLINGLY TO AMERICA THE NEXT PERSON ON THE SCENE IS AN INDIAN CLICK DR MIKE ANNOUNCES THAT THE CHEYENNE WERE HERE BEFORE ANY OF US I WAS WRONG SHE ADDS WE'RE NOT ALL IMMIGRANTS THOSE OF US WHO HAVE SOMETIMES WONDERED WHAT THE NEW YORK TIMES EDITORIAL PAGE MIGHT SOUND LIKE IF IT WERE DRAMATIZED NOW HAVE THE ANSWER IN DR QUINN MEDICINE WOMAN FROM THE CHEYENNE WE MOVE ON TO GUN CONTROL ONE OF DR MIKE'S OLDER CHARGES COMES BY A NEW PISTOL GUNS THE APPALLED DR MIKE POINTS OUT KILL PEOPLE TRUE AND ALSO ONE OF THE MORE UNLIKELY UTTERANCES EVER PUT IN THE MOUTH OF AN INHABITANT OF A WESTERN FRONTIER TOWN DR MIKE IS A TRAINED PHYSICIAN SHOCKED AT THE PRIMITIVE PRACTICES OF THE BULLYING TOWN QUACK WHO COMPETES WITH HER STILL LEST ANYONE GET THE IDEA THAT THE WHITE MAN'S MEDICINE IS ALL THAT WORKS DR MIKE HERSELF FALLS ILL AND HAS TO BE RUSHED OFF TO THE CHEYENNE MEDICINE MAN WHO GIVES HER THE WORKS SHE IS SOON NEEDLESS TO SAY UP AND AROUND AGAIN DR QUINN IS AS YOU HAVE GATHERED A MODEL OF POLITICALLY CORRECT NOT TO SAY HUMORLESS VACUITY SO HOW DID IT COME BY ITS CONSIDERABLE AUDIENCE THE QUICK ANSWER AND THE ONE MOST RELEVANT IS THAT THOSE IN ITS AUDIENCE DON'T GIVE A HOOT ABOUT THE PIETIES THE SHOW DRENCHES THEM WITH SO LONG AS THEY ARE GETTING SOMETHING ELSE IMPORTANT TO THEM AND THIS IS SOMETHING DR QUINN DOES DELIVER IN THE GREAT TIDE OF SANCTIMONY AND PSEUDOFRONTIER HISTORY RAINING ON THOSE VIEWERS THERE IS AN UNDENIABLE SWEETNESS AND SIMPLICITY UNMARRED BY EVEN A TRACE OF SENSATIONALISM OR A PRURIENT LEER WINK OR KNOWING POKE OF THE SORT THAT IS NOW ROUTINE IN PRIMETIME ENTERTAINMENT THE VIOLENCE IN DR QUINN IS NOT THAT OF OUR URBAN NIGHTMARE THERE ARE NO DRUG DEALERS NO CAR CHASES NO SERIAL KILLERS ONLY CLASHES BETWEEN NOBLE INDIANS AND EVIL WHITE MEN 130 SAFE YEARS AGO OF THE THOUSANDS OF LETTERS THAT DESCENDED ON CBS PROTESTING THE DISAPPEARANCE OF BROOKLYN BRIDGE THE VAST MAJORITY SAID VIEWERS MOURNED THE PASSING OF ONE OF THE FEW SHOWS THAT THE WHOLE FAMILY COULD WATCH THERE WERE OTHER MORE SIGNIFICANT REASONS FOR MOURNING THE LOSS OF BROOKLYN BRIDGE CHIEF AMONG THEM ITS WIT AND OVERALL QUALITY BUT THERE CAN BE NO DOUBTING THE HUNGER EXPRESSED IN THOSE LETTERS FOR THE INNOCENCE THAT SURROUNDED THE SHOW DR QUINN CLEARLY SATISFIES SOMETHING OF THE SAME YEARNING IT'S A MEASURE OF THAT YEARNING AND THE STATE OF PRIME TIME GENERALLY THAT SO CONSUMMATELY DOPEY A VEHICLE AS DR QUINN SHOULD SEEM TO A LARGE AUDIENCE TO BE A DESIRABLE ALTERNATIVE TO THE REST OF WHAT'S AVAILABLE THE SHOW WINS ITS TIME SLOT EVERY WEEK AND WHY NOT WHEN ITS COMPETITORS ARE FOX'S COPS AND NBC'S DISMAL NURSES THE SHOW'S SUCCESS ALSO SAYS SOMETHING ABOUT THE POWER OF OLDER AUDIENCES OR MORE PRECISELY DR QUINN SHOWS HOW THE NETWORKS WITH THE EXCEPTION OF CBS MISCALCULATED WHEN THEY BEGAN DESIGNING THEIR PROGRAMMING TO CAPTURE THE 18TO35YEAROLD VIEWERS SUPPOSEDLY BELOVED BY ADVERTISERS THE NETWORKS HAVE SINCE DISCOVERED THE FOLLY OF PUTTING THEIR FAITH IN THE YOUTH MARKET THE AUDIENCE FOR THE SUCCESSFUL DR QUINN AS IT TURNS OUT CONSISTS MOSTLY OF VIEWERS OVER 50 THE PROGRAM DOESN'T DO WELL EVERYWHERE TO BE SURE IT DOESN'T DO WELL ON THE TWO COASTS FOR INSTANCE BUT THE RATINGS ARE SOARING IN THE MIDDLE OF THE COUNTRY AND THE SOUTH DR QUINN HAS MORE THAN ITS CHASTENESS TO RECOMMEND IT OF COURSE IT IS AFTER ALL ABOUT THE OLD WEST WITH HORSES AND COWBOYS AND INDIANS BROOKLYN BRIDGE HAD NONE OF THESE THINGS IT IS LIVELY WITH A LOT OF ENGAGING URCHINS RUNNING ABOUT YOU KEEP EXPECTING TO SEE JOHN BOY WALTON WHICH WOULDN'T BE SUCH A BAD THING HEARING A VOICE CALL OUT GOOD NIGHT GRANDPA WOULD AT ANY RATE BE MUCH PREFERABLE TO MOST OF THE DIALOGUE IN DR QUINN AMONG OTHER ATTRACTIONS THE SHOW DOES OFFER ROMANCE OF A KIND AND MS SEYMOUR CAN BE APPEALING BETWEEN PAROXYSMS OF RECTITUDE WHILE WE ARE ON THE SUBJECT ANOTHER PHYSICIAN IS THE MAIN CHARACTER IN A NEW SIXPART MASTERPIECE THEATRE OFFERING CURTLY TITLED DOCTOR FINLAY BASED ON SKETCHES BY AJ CRONIN THE BRITISH POPULAR NOVELIST OF THE 1930S AND '40S BEGINNING SUNDAY 910 PM EDT ON PBS EVEN THOSE NOT FOND OF THE NOVELS OF MR CRONIN WILL BE IMPRESSED WITH THE FORCE AND VITALITY OF THIS SERIES IT IS IN A WORD A WINNER NOTWITHSTANDING A TALKY FIRST EPISODE 9305030085 930503 WHAT'S NEWS WORLDWIDE BOSNIA'S SERB LEADER SIGNED A UNSUPPORTED PEACE AGREEMENT THE ACCORD STILL MUST BE RATIFIED BY THE BOSNIAN SERBS' PARLIAMENT WHICH HAS TWICE REJECTED THE VANCEOWEN PLAN AND WHOSE SPEAKER DENOUNCED IT IMMEDIATELY AFTER KARADZIC SIGNED IT WHILE CLINTON CALLED KARADZIC'S ACTION A POSITIVE STEP HE SAID WE HAVE YET TO DETERMINE WHETHER THE SERBS ARE SERIOUS ABOUT PEACE THE PRESIDENT SAID SECRETARY OF STATE CHRISTOPHER WOULD CONTINUE HIS CONSULTATIONS IN EUROPE TO GAIN BACKING FOR POSSIBLE US MEASURES THESE ARE BELIEVED TO INCLUDE LIFTING THE ARMS EMBARGO ON BOSNIA'S MUSLIMS AS WELL AS AIR STRIKES SERBS FIRED FOUR MORTAR SHELLS INTO CENTRAL SARAJEVO KILLING AT LEAST TWO PEOPLE FIGHTING ALSO WAS REPORTED IN NORTHERN AND EASTERN PARTS OF BOSNIA ABOUT 400 COMMUNIST PROTESTERS RALLIED QUIETLY NEXT TO THE RUSSIAN PARLIAMENT CALLING PRESIDENT YELTSIN A BUTCHER ONE DAY AFTER A VIOLENT CLASH THAT LEFT MORE THAN 200 POLICEMEN AND SOME 70 DEMONSTRATORS INJURED IN MOSCOW THE PROSECUTOR GENERAL'S OFFICE MEANWHILE BEGAN A PROBE INTO SATURDAY'S STREET BATTLE IN GAGARIN SQUARE ASPIN FIRED AN AIR FORCE GENERAL AND DISCIPLINED THREE OTHER PENTAGON OFFICIALS IN CONNECTION WITH THE TROUBLED C17 CARGOJET PROGRAM BUT THE DEFENSE SECRETARY SAID HE SAW NO EVIDENCE THAT THE PROGRAM MAY HAVE BEEN CRIMINALLY MISMANAGED AND TOOK NO STEPS TO DISCIPLINE OR REBUKE MCDONNELL DOUGLAS ISRAEL'S MINISTER OF POLICE SAID THAT THE ISRAELIS SHOULD WITHDRAW FROM THE ENTIRE GOLAN HEIGHTS IN RETURN FOR PEACE WITH SYRIA WHICH LOST THE PLATEAU IN THE 1967 WAR MEANWHILE AN ARAB MEMBER OF THE ISRAELI PARLIAMENT SAID THE CLINTON ADMINISTRATION IS PREPARING A BROAD AID PLAN FOR PALESTINIANS IN THE OCCUPIED TERRITORIES FIFTEEN ARABS RETURNED TO THE WEST BANK TOWN OF JERICHO AFTER SPENDING UP TO 20 YEARS IN EXILE SAYING THEIR RETURN WAS A BOOST FOR THE PALESTINE LIBERATION ORGANIZATION THE GROUP WHICH RECEIVED A JUBILANT WELCOME BY THOUSANDS OF PALESTINIANS ON FRIDAY IS TO BE FOLLOWED BY 15 MORE LONGTIME EXILES TODAY ISRAEL ARMY RADIO SAID CLINTON ANNOUNCED HIS ADMINISTRATION'S NATIONAL SERVICE AND DIRECT STUDENTLOAN PROPOSALS ON FRIDAY THE TWO PROGRAMS WHICH WILL BE CONSIDERED IN SEPARATE PIECES OF LEGISLATION ARE EXPECTED TO FACE TOUGH OPPOSITION ON CAPITOL HILL SRI LANKA'S PRESIDENT WAS ASSASSINATED BY A SUICIDE BOMBER AT A MAY DAY PARADE SATURDAY IN COLOMBO A WEEK AFTER A LEADING OPPOSITION LEADER WAS KILLED ASIDE FROM PRESIDENT PREMADASA ABOUT TWO DOZEN OTHERS WERE KILLED IN THE BOMBING WHICH POLICE LINKED TO THE TAMIL TIGERS REBEL GROUP A FORMER FRENCH PREMIER COMMITTED SUICIDE SATURDAY BEREGOVOY 67 APPARENTLY SHOT HIMSELF BECAUSE HE WAS TROUBLED BY ACCUSATIONS OF CORRUPTION AND TO A LESSER DEGREE FOR BEING BLAMED FOR THE NATION'S ECONOMIC WOES HE HAD RESIGNED AFTER HIS SOCIALIST PARTY'S DEFEAT IN MARCH ELECTIONS SOUTH AFRICAN POLICE HUNTED FOR BLACK GUNMEN WHO ALLEGEDLY KILLED FIVE WHITE MEN AT A HOTEL IN THE SOUTHERN COASTAL CITY OF EAST LONDON NO ONE CLAIMED RESPONSIBILITY FOR SATURDAY'S ATTACK BUT THE MILITANT PAN AFRICANIST CONGRESS HAS CARRIED OUT A NUMBER OF ATTACKS AGAINST WHITES IN THE REGION TEXAS LEADERS WEIGHED VARIOUS SCHOOL FUNDING PLANS AFTER VOTERS REJECTED A PROPOSAL SATURDAY TO ALLOW SOME PROPERTY TAX MONEY TO BE SHIFTED TO POOR DISTRICTS MEANWHILE GOP STATE TREASURER HUTCHISON AND DEMOCRATIC SEN KRUEGER WERE THE TOP TWO FINISHERS IN A SENATE PRIMARY THEY NOW FACE A RUNOFF MONICA SELES LEFT A GERMAN HOSPITAL FOR THE US AFTER BEING TREATED FOR A KNIFE WOUND IN HER UPPER BACK THE WORLD'S NO 1RANKED WOMAN TENNIS PLAYER WAS STABBED FRIDAY BY A GERMAN SPECTATOR AT A MATCH IN HAMBURG YUGOSLAVBORN SELES 19 ESCAPED MAJOR INJURY BUT WAS EXPECTED TO NEED ONE TO THREE MONTHS TO RECUPERATE THE UKRAINIAN PARLIAMENT IS EXPECTED TO BEGIN CONSIDERING WHETHER TO CLAIM OWNERSHIP OF ITS NUCLEAR ARSENAL OFFICIALS SAY A HARDLINE US ATTITUDE IS PUSHING THE FORMER SOVIET REPUBLIC TO CONSIDER KEEPING SOME OF THE NUCLEAR WEAPONS RATHER THAN GIVING THEM UP AS THE US AND RUSSIA DEMAND INVESTIGATORS SAID CULT LEADER DAVID KORESH DIED OF A GUNSHOT WOUND TO THE HEAD BEFORE A FIRE DESTROYED THE CULT'S COMPOUND IN WACO TEXAS THE BODY WAS FOUND ALONE IN THE COMPOUND'S ASHES AUTHORITIES WOULDN'T SAY IF KORESH 33 HAD COMMITTED SUICIDE OR PINPOINT WHEN HE DIED 9305030084 930503 POLITICS & POLICY HUTCHISON'S TEXAS SENATE RACE FINISH IS BIG BOOST FOR GOP BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON KAY BAILEY HUTCHISON'S STRONG FINISH IN TEXAS' SPECIAL SENATE ELECTION SPELLS TROUBLE FOR PRESIDENT CLINTON AND GIVES REPUBLICANS A BIG LIFT TOWARD WINNING THE SEAT VACATED BY TREASURY SECRETARY LLOYD BENTSEN THE 49YEAROLD STATE TREASURER HOPING TO BE TEXAS' FIRST FEMALE SENATOR NARROWLY TOPPED A FIELD OF 24 IN SATURDAY'S BALLOTING SHE WILL FACE DEMOCRATIC SEN BOB KRUEGER WHO FINISHED SECOND IN THE RUNOFF EXPECTED IN EARLY JUNE MR KRUEGER APPOINTED TO MR BENTSEN'S PLACE IN JANUARY HAD BEEN THE EARLY FAVORITE HIS PROBLEMS ARE NOW COMPOUNDED BY THE FACT THAT MS HUTCHISON SHARED THE REPUBLICAN VOTE WITH REPS JOE BARTON AND JACK FIELDS WHO FINISHED THIRD AND FOURTH THE THREE TOP REPUBLICANS CAPTURED ABOUT 57 OF THE BALLOTS COMPARED WITH LESS THAN 40 FOR MR KRUEGER AND TWO OTHER DEMOCRATS INCLUDING RICHARD FISHER A WEALTHY DALLAS BUSINESSMAN AND FORMER ADVISER TO ROSS PEROT WHO CAME IN FIFTH WITH SENATE REPUBLICANS FILIBUSTERING MR CLINTON'S INITIATIVES THE LOSS OF MR BENTSEN'S SEAT WOULD LEAVE THE DEMOCRATS WITH A 56VOTE MAJORITY FOUR VOTES SHY OF THE NUMBER NEEDED TO INVOKE CLOTURE TO END THE FILIBUSTER AND BRING THE LEGISLATION TO A VOTE AND FACING NEXT YEAR'S ELECTIONS THERE IS FEAR THE NEW PRESIDENT WILL BE UNABLE TO PROTECT OTHER DEMOCRATIC INCUMBENTS MOREOVER THE TEXAS CAMPAIGN DEMONSTRATED A BROAD UNEASE OVER BOTH NEW TAXES AND FOREIGN COMMITMENTS TO BOSNIA AND RUSSIA FOR GOV ANN RICHARDS WHO HERSELF MUST RUN NEXT YEAR THE RESULTS REVEAL SOME CHINKS IN HER CONSIDERABLE ARMOR THE GOVERNOR FRUSTRATED LIBERALS BY HER CHOICE OF MR KRUEGER FOR THE SENATE SLOT AND SHE WAS REBUFFED DIRECTLY SATURDAY WHEN VOTERS OVERWHELMINGLY REJECTED A PUBLIC SCHOOL FINANCING MEASURE THAT SHE HAD BACKED AND PREDICTED WOULD PASS THE CONSERVATIVE OPPOSITION TO THE REFERENDUM ISSUE APPEARED TO BE A FORCE IN TURNING OUT THE LARGER REPUBLICAN VOTE AND THE NATIONAL GOP INVESTED IN ANTIKRUEGER RADIO ADS AND HEAVY DIRECT MAIL THE SECONDPLACE FINISH FOLLOWS LOSSES FOR MR KRUEGER IN SENATE RACES IN 1978 AND 1984 A PAIR OF BOOTS A PROMISE AND A MISSION READS A FLIER FOR THIS ELIZABETHAN SCHOLAR BUT AFTER TWO DECADES IN AND OUT OF PUBLIC LIFE HE RESEMBLES LESS A TYPICAL LONE STAR POLITICIAN THAN A SHY OXFORD DON WHO WANDERS INADVERTANTLY INTO THE TUMULT OF TEXAS POLITICS HE BEGINS THE RUNOFF AS THE CLEAR UNDERDOG WHICH COULD FORCE HIM TO ADOPT A MORE FREEWHEELING STYLE BUT GIVEN HIS RELATIVELY HIGH NEGATIVES IN POLLS THE RACE COULD TURN NASTY AS DEMOCRATS TRY TO OVERCOME MS HUTCHISON'S POSITION BY CUTTING HER DOWN SHE'S DEFINITELY UNDEFINED IN THE VOTERS' MINDS SAID GREG HARTMAN MR KRUEGER'S CAMPAIGN MANAGER NOW WE FINALLY HAVE A CHANCE TO GO ONEONONE MS HUTCHISON'S REPUBLICAN RIVALS TRIED AS MUCH IN THE FINAL WEEKS AFTER MEDIA REPORTS OF ALLEGATIONS THAT THE TREASURER HAD PHYSICALLY ABUSED STATE EMPLOYEES BUT MR FIELDS WHO HAD ENJOYED A SURGE IN THE POLLS FELL BACK LATER MR BARTON AN EARNEST FORMER INDUSTRIAL ENGINEER OVERTOOK HIS CONGRESSIONAL COLLEAGUE BY APPEALING TO BEDROCK CONSERVATIVES IN THE GOP 9305030083 930503 INTERNATIONAL EXPREMIER'S SUICIDE DAMAGES FRENCH SOCIALISTS BEREGOVOY'S DEATH IS SEEN AS EMOTIONAL CATALYST FOR POLITICAL REFORM BY ES BROWNING STAFF REPORTER OF THE WALL STREET JOURNAL PARIS THE SUICIDE SATURDAY OF FORMER PRIME MINISTER PIERRE BEREGOVOY FURTHER DAMAGES FRANCE'S ALREADY STAGGERING SOCIALIST PARTY AND INCREASES PRESSURE FOR DEEP POLITICAL REFORM SOME POLITICAL INSIDERS THINK THE SUICIDE COMING IN THE WAKE OF PERVASIVE SCANDALS IN ITALY THAT HAVE ALTERED THE COURSE OF POLITICS IN ROME COULD PROVE AN EMOTIONAL CATALYST FOR CHANGE IN FRANCE MR BEREGOVOY 67 YEARS OLD IS THE MOST PROMINENT AND RESPECTED FRENCH NATIONAL FIGURE TO COMMIT SUICIDE SINCE THE FINANCIAL SCANDALS OF THE 1930S SOCIALIST LEADERS SAID MR BEREGOVOY APPARENTLY SHOT HIMSELF BECAUSE HE WAS DEEPLY TROUBLED BY ACCUSATIONS OF CORRUPTION AND TO A LESSER DEGREE FOR BEING BLAMED FOR FRANCE'S ECONOMIC TROUBLES HE FELT RESPONSIBLE FOR THE SOCIALIST'S DEFEAT IN MARCH ELECTIONS AND COULDN'T ADJUST TO THE LOSS OF POLITICAL POWER THEY SAID BEFORE HE LOST POWER IN MARCH'S CRUSHING LEGISLATIVE DEFEAT MR BEREGOVOY ACKNOWLEDGED HAVING TAKEN A MILLIONFRANC INTERESTFREE LOAN IN 1986 FROM A BUSINESSMAN WHO LATER WAS ACCUSED OF INSIDER TRADING THAT DISCLOSURE FOLLOWED A SERIES OF UGLY SCANDALS INVOLVING ILLEGAL POLITICAL PARTY FINANCES AND THE KNOWING DISTRIBUTION OF AIDSTAINTED BLOOD TO HEMOPHILIACS BY HEALTH AUTHORITIES EVEN BEFORE THE ELECTION CALLS FOR DEEP REFORM WERE SPREADING IN THE FIRST ROUND OF LEGISLATIVE VOTING ANGRY CITIZENS GAVE MORE VOTES THAN USUAL TO THE FARRIGHT NATIONAL FRONT AND TO OTHER FRINGE PARTIES LIKE THE GREENS SINCE THE ELECTION THE SOCIALIST PARTY HAS BEGUN TO SPLIT UP MR BEREGOVOY TOLD AN INTERVIEWER SHORTLY BEFORE HIS DEATH THAT ONE OF HIS LAST AMBITIONS WAS TO HOLD THE PARTY TOGETHER GAULLIST PRIME MINISTER EDOUARD BALLADUR WAS REPORTED TO BE DEVASTATED BY THE NEWS MR BALLADUR IMMEDIATELY MADE KNOWN THAT HIS MUCHAWAITED PACKAGE OF ECONOMIC MEASURES AIMED AT CUTTING FRANCE'S DEFICIT AND FIGHTING RECESSION WOULDN'T BE ANNOUNCED AS PLANNED AFTER WEDNESDAY'S CABINET MEETING IN DEFERENCE TO THE DECEASED FORMER PRIME MINISTER BOTH MR BALLADUR AND PRESIDENT FRANCOIS MITTERRAND RUSHED TO PARIS'S VAL DE GRACE MILITARY HOSPITAL WHERE MR BEREGOVOY WAS FLOWN BY HELICOPTER FROM NEAR HIS BURGUNDY HOME HE DIED FOUR HOURS AFTER THE WOUND WAS INFLICTED THE SON OF A UKRAINIAN IMMIGRANT MR BEREGOVOY DROPPED OUT OF SCHOOL AT 15 AND BECAME A LATHE OPERATOR THEN ROSE TO PROMINENCE AS A SOCIALIST LEADER AND DREAMED OF BEING PRIME MINISTER HE HELD THAT OFFICE LESS THAN A YEAR MR BEREGOVOY HAD MAINTAINED THE IMAGE OF A SOLID DOWNHOME SELFMADE MAN DESPITE HIS BACKGROUND AS A UNION ORGANIZER HE CARRIED OUT PERVASIVE DEREGULATION AS FINANCE MINISTER AND THEN PRIME MINISTER HE ENDED EXCHANGE CONTROLS STRENGTHENED THE FRANC FOUGHT INFLATION AND TOLERATED HIGH UNEMPLOYMENT AS THE PRICE OF CHANGE I DIDN'T SHARE HIS POLITICAL VIEWS BUT I ADMIRED SOME THINGS THAT HE DID SAID THE CONSERVATIVE PRESIDENT OF A SMALL PARIS MANUFACTURING COMPANY THIS NEWS COMES AS A TERRIBLE SHOCK YOU GET THE IMPRESSION WE ARE BECOMING MORE LIKE ITALY EVERY DAY 9305030082 930503 BAXTER'S CHAIRMAN SAYS ILLEGAL ACTIONS OVER ARAB BOYCOTT WERE UNINTENTIONAL BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO VERNON R LOUCKS JR CHAIRMAN OF BAXTER INTERNATIONAL INC SAID AT THE ANNUAL MEETING THAT THE COMPANY'S ILLEGAL ACTIONS INVOLVING THE ARAB BOYCOTT OF ISRAEL WERE A COMPLETELY UNINTENTIONAL VIOLATION OF THE LAW MR LOUCKS SAID BAXTER OFFICIALS HAD RELIED ON GUIDANCE FROM OUTSIDE COUNSEL FOR THE STEPS THEY TOOK THAT LED TO A MARCH 25 GUILTY PLEA IN FEDERAL COURT HERE THE PLEA WAS TO A SINGLE FELONY COUNT OF PROVIDING INFORMATION TO ARAB BOYCOTT AUTHORITIES WHO SUPERVISE THE ECONOMIC BOYCOTT OF ISRAEL SPECIFICALLY BAXTER ADMITTED SUPPLYING TO BOYCOTT AUTHORITIES HUNDREDS OF ITEMS OF INFORMATION ABOUT THE COMPANY'S BUSINESS IN ISRAEL SUPPLYING THAT INFORMATION WAS PART OF A MULTIYEAR BAXTER CAMPAIGN THAT LED THE DAMASCUSBASED ARAB LEAGUE TO REMOVE BAXTER IN 1989 FROM THE LIST OF BOYCOTTED US COMPANIES AS SHAREHOLDERS ALTERNATELY CALLED FOR HIS REMOVAL OR PRAISED HIS STEWARDSHIP MR LOUCKS MAINTAINED WE HAD NO REASON TO THINK WE HAD DONE ANYTHING WRONG FURTHER SAID MR LOUCKS I DID NOT KNOW OF ANY OF THE QUESTIONABLE ACTS BROUGHT OUT IN A PLEA AGREEMENT MADE PUBLIC BY FEDERAL PROSECUTORS IN MARCH AMONG THESE ACTS ACCORDING TO THE PLEA AGREEMENT WAS A PROPOSAL BY THENGENERAL COUNSEL G MARSHALL ABBEY TO CONFER A BENEFIT ON SELECTED ARAB STATES OF 2250000 TO SECURE REMOVAL FROM THE BLACKLIST MR LOUCKS HAD ASSIGNED MR ABBEY TO GET BAXTER OFF THE BOYCOTT LIST MR ABBEY BEFORE RESIGNING IN APRIL REPORTED DIRECTLY TO THE CHAIRMAN MR LOUCKS DECLINED IN AN INTERVIEW TO IDENTIFY WHICH OUTSIDE LAWYERS GAVE BAXTER THE ADVICE THAT HE SAID LED TO THE GUILTY PLEA THE PLEA DOCUMENT APPROVED BY BAXTER SAID AN OUTSIDE LAWYER TOLD MR ABBEY THAT IT WAS ILLEGAL TO PROVIDE BOYCOTT AUTHORITIES WITH INFORMATION ABOUT THE COMPANY'S DEALINGS WITH ISRAEL AN IMPASSIONED MR LOUCKS SAID BAXTER WILL CONTINUE TO STRIVE FOR ETHICAL EXCELLENCE AND ANNOUNCED THE FORMATION OF A CORPORATE RESPONSIBILITY OFFICE WITHIN THE COMPANY HE ALSO SAID THE COMPANY WOULD PAY A 101000 CIVIL FINE FOR MR ABBEY WHO WAS DESCRIBED BY THE COMPANY'S ACTING GENERAL COUNSEL ARTHUR STAUBITZ AS HAVING RELIED ON THE BEST LEGAL ADVICE AVAILABLE TO HIM MR LOUCKS SAID HE DIDN'T MEAN IN ANY WAY TO MINIMIZE THE SERIOUSNESS OF THE ISSUES BUT HE VOWED TO PUT THIS MIDDLE EASTERN ISSUE BEHIND US REHASHING IT EVERY DAY IS ENOUGH WE'VE HAD ENOUGH OF THIS THE MEETING TURNED RAUCOUS AFTER MR LOUCKS INTRODUCED HIMSELF AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER NOT FOR LONG SHOUTED A SHAREHOLDER MR LOUCKS LATER SAID HE PLANS TO STAY ON AS CHAIRMAN AFTER THE ANNUAL MEETING BAXTER'S OUTSIDE DIRECTORS MET WITH OFFICIALS OF A TOP CUSTOMER THE PREMIER HOSPITALS ALLIANCE LAST WEEK PREMIER SAID IT PLANNED TO BEGIN WITHDRAWING FROM ITS 250 MILLION IN BUSINESS WITH BAXTER OVER WHAT IT DESCRIBED AS DEFECTS IN THE COMPANY'S BUSINESS ETHICS THE ARAB BOYCOTT CASE WAS ONE OF PREMIER'S COMPLAINTS MR LOUCKS SAID HE THINKS THAT THIS IS SOMETHING WE CAN WORK OUT WITH PREMIER PREMIER OFFICIALS DECLINED COMMENT 9305030081 930503 KANTOR ISSUES TRADE THREAT AGAINST JAPAN US ALLEGES DISCRIMINATION EXISTS IN CONSTRUCTION AND IN SUPERCOMPUTERS BY ASRA Q NOMANI AND MASAYOSHI KANABAYASHI STAFF REPORTERS OF THE WALL STREET JOURNAL US TRADE REPRESENTATIVE MICKEY KANTOR THREATENED RETALIATION AGAINST JAPAN FOR ALLEGEDLY DISCRIMINATING AGAINST US CONSTRUCTION COMPANIES AND SUPER COMPUTER MAKERS AS PART OF A PLAN TO PRESS JAPAN TO MAKE BIG TRADE CONCESSIONS BY JULY MR KANTOR WHO HAS SAID HE WANTS TO USE A SLEDGEHAMMER TO BREAK DOWN TRADE BARRIERS BLASTED THE JAPANESE FOR UNFAIRLY PASSING OVER US SUPERCOMPUTER CONSTRUCTION ENGINEERING AND ARCHITECTURAL COMPANIES IN AWARDING PUBLIC WORKS CONTRACTS AND GOVERNMENT PURCHASES OF THOSE INDUSTRIES THE US IS CONCENTRATING FIRST ON CONSTRUCTION MR KANTOR ACCUSED JAPAN OF BEING FUNDAMENTALLY CLOSED TO FOREIGN COMPANIES AND HE SAID HE WOULD GIVE THE GOVERNMENT 60 DAYS TO FIX THE ALLEGED PROBLEM OTHERWISE THE US WOULD LIKELY IMPOSE SANCTIONS OR DUTIES ON JAPANESE IMPORTS THAT MEANS RETALIATION COULD COME AT THE BEGINNING OF JULY JUST A FEW DAYS BEFORE THE LEADERS OF THE SEVEN LARGEST INDUSTRIAL ECONOMIES MEET IN TOKYO JAPAN IS CONSIDERED PARTICULARLY SUSCEPTIBLE TO INFLUENCE IN JULY BECAUSE AS HOST OF THE G7 MEETING IT WANTS TO MAKE SURE THE SUMMIT GOES SMOOTHLY JULY HAS BECOME THE CLINTON ADMINISTRATION'S DE FACTO DEADLINE FOR IMPROVING USJAPANESE TRADE RELATIONS BY THAT TIME IT HAS SAID IT WANTS TO GET JAPAN TO AGREE TO A NEW TRADE AGENDA BETWEEN THE TWO COUNTRIES THE US ALSO WANTS TO RESOLVE DIFFERENCES WITH THE EUROPEAN COMMUNITY ON WORLD TRADE TALKS BY THEN SO BOTH CAN PRESS JAPAN TO MAKE TRADE CONCESSIONS BUT JAPANESE FOREIGN MINISTRY SPOKESMAN MASAMICHI HANABUSA REACTING TO MR KANTOR'S ANNOUNCEMENT SAID IN A STATEMENT THAT THE GOVERNMENT DOESN'T HAVE ANY INTENTION OF NEGOTIATING UNDER PRESSURE OF UNILATERAL SANCTIONS AND WITHIN A UNILATERALLY SET TIME LIMIT AND HE WARNED THAT IF THE US INITIATED SANCTIONS JAPAN WOULD CONSIDER COUNTERMEASURES THE US RHETORIC PARTICULARLY AGAINST JAPAN IS IN SYNCH WITH THE TOUGH POSTURE MR KANTOR AND THE CLINTON ADMINISTRATION HAVE ADOPTED IN DEALING WITH TRADE DISPUTES AT FIRST BLUSH THE ANGRY TALK APPEARS TO HAVE PROMPTED TRADING PARTNERS TO STIFFEN THEIR SPINES AND IT REMAINS TO BE SEEN WHETHER IT WILL HELP RESOLVE DISPUTES AND SLASH THE US'S 494 BILLION TRADE DEFICIT WITH JAPAN ON THE JAPANESE SUPERCOMPUTER MARKET A POTENTIALLY BIG ONE FOR COMPANIES SUCH AS MINNEAPOLISBASED CRAY RESEARCH INC MR KANTOR SAID THE US PLANS TO MONITOR JAPANESE GOVERNMENT BIDDING PROCEDURES TO SEE IF THEY ARE FAIR IF THE ADMINISTRATION DECIDES THE BIDDING PROCESS IS UNFAIR MR KANTOR SAID HE WOULD FOLLOW UP WITH LEGAL REMEDIES THAT INCLUDE UNILATERAL TRADE SANCTIONS JAPAN'S PRIME MINISTER KIICHI MIYAZAWA SPEAKING TO JAPANESE REPORTERS SATURDAY IN AUCKLAND DURING A VISIT TO NEW ZEALAND EXPRESSED IRRITATION AT THE US POSITION I DON'T UNDERSTAND WHAT THEY ARE TALKING ABOUT NOW HE WAS QUOTED AS SAYING BY THE ASAHI SHIMBUN NEWSPAPER THE US THREAT OF SANCTIONS IN THE CONSTRUCTION AREA MR MIYAZAWA SUGGESTED HAS SURFACED BECAUSE OF THE CLINTON ADMINISTRATION'S LACK OF AWARENESS OF MEASURES JAPAN TOOK TO RESOLVE THE CONSTRUCTION ISSUE DURING THE BUSH PRESIDENCY HE SAID THE MATTER COULD BE RESOLVED IN WORKINGLEVEL DISCUSSIONS BETWEEN THE TWO COUNTRIES JAPAN SAID THE ISSUE OF US ACCESS TO JAPANESE PUBLICWORKS CONTRACTS HAS BEEN ADDRESSED BY BILATERAL PACTS WITH WASHINGTON SIGNED IN 1988 AND 1991 UNDER WHICH JAPAN INTRODUCED AFFIRMATIVEACTION PROVISIONS THAT MADE IT EASIER FOR US COMPANIES TO BID ON 34 BIG CONSTRUCTION PROJECTS MR HANABUSA THE FOREIGN MINISTRY SPOKESMAN ALSO DISMISSED MR KANTOR'S CONCERNS OVER JAPANESE GOVERNMENT PROCUREMENT OF COMPUTER EQUIPMENT SAYING TOKYO HAS BEEN FOLLOWING OPEN BIDDING PROCEDURES THE REACTION TO MR KANTOR'S ANNOUNCEMENT WHICH WAS UNUSUALLY FORCEFUL FOR TOKYO IS PART OF JAPAN'S NEW CAMPAIGN TO APPEAR TOUGH IN THE FACE OF US TRADE THREATS JAPANESE OFFICIALS HAVE BEEN USING WORDS LIKE COUNTERMEASURES AND RETALIATION WITH INCREASING FREQUENCY SEPARATELY MR KANTOR NAMED INDIA THAILAND AND BRAZIL AS PRIORITY FOREIGN COUNTRIES UNDER THE SPECIAL 301 PROVISIONS OF THE US TRADE ACT OF 1974 WHICH ALLOW THE US TO TAKE UNILATERAL RETALIATORY STEPS TO PENALIZE COUNTRIES FOR VIOLATING FAIRTRADE PROVISIONS INDIA WAS CITED FOR INADEQUATE PATENT LAWS AND PROTECTION OF US INTELLECTUAL PROPERTY PARTICULARLY RELATING TO THE PHARMACEUTICAL INDUSTRY OFFICIALS IN INDIA SAID THEY PLAN TO RESOLVE DIFFERENCES ON INTELLECTUAL PROPERTY RIGHTS PARTICULARLY PATENTS IN TALKS WITH THE CLINTON ADMINISTRATION LIKELY STARTING LATER THIS MONTH INDIAN COMMERCE MINISTER PRANABH MUKHERJEE SAID IN AN INTERVIEW THAT THE INDIAN VIEW HAS BEEN THAT TRADE DISPUTES SHOULD BE SORTED OUT AT THE MULTILATERAL LEVEL HE SAID THAT UNILATERAL ACTION IS NOT WARRANTED SUMAN DUBEY IN NEW DELHI CONTRIBUTED TO THIS ARTICLE 9305030080 930503 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR BETTER WEATHER IN APRIL PROBABLY HELPED JOB GROWTH BOUNCE BACK FROM AN ABNORMALLY WEAK PERFORMANCE IN MARCH BUT THE LONGTERM OUTLOOK FOR THE LABOR MARKET REMAINS SUBDUED WE SHOULD SEE SOME SNAPBACK IN THE CONSTRUCTION AND RETAIL INDUSTRIES BOTH OF WHICH WERE HIT HARD BY THE MARCH BLIZZARD IN THE EAST SAID RICHARD BERNER CHIEF ECONOMIST AT MELLON BANK IN PITTSBURGH MR BERNER IS FORECASTING A GAIN OF 175000 NONFARM PAYROLL JOBS IN APRIL WHICH WOULD REPRESENT A SUBSTANTIAL IMPROVEMENT OVER A 22000 DECLINE IN MARCH RESIDENTIAL CONSTRUCTION IS POISED FOR A BID COMEBACK AFTER LOSING 93000 JOBS IN MARCH HE SAID MORTGAGE RATES AT 20YEAR LOWS GOOD WEATHER AND PENTUP BUYER DEMAND SHOULD GIVE A BIG BOOST IN HOME CONSTRUCTION MR BERNER SAID THERE SHOULD BE A MILDACCELERATION OF JOB GROWTH THROUGH THE REMAINDER OF THE YEAR BUT IT WILL NONETHELESS BE SUBPAR FOR AN ECONOMIC EXPANSION HE SAID THERE ARE SOME FUNDAMENTAL FACTORS THAT WILL KEEP JOB GROWTH SUBDUED FOR ALONG TIME MR BERNER SAID WORRIES ABOUT THE STRENGTH OF THE ECONOMIC EXPANSION AND UNCERTAINTY OVER THE DETAILS OF PRESIDENT CLINTON'S TAX PROPOSALS ARE MAKING COMPANIES UNEASY ABOUT UNDERTAKING THE EXPENSE OF HIRING NEW WORKERS HE SAID 9305030079 930503 BUSINESS BRIEF PNC BANK IS SAID TO BE TALKING TO SEARS ABOUT BUYING COLDWELL'S MORTGAGE UNIT PNC BANK CORP HAS BEEN TALKING TO SEARS ROEBUCK & CO ABOUT ACQUIRING THE MORTGAGE SERVICING DIVISION OF SEARS'S COLDWELL BANKER UNIT ACCORDING TO A NUMBER OF PEOPLE CLOSE TO THE DISCUSSIONS MEANWHILE NEGOTIATIONS HAVE BROKEN DOWN BETWEEN SEARS AND AN INVESTOR GROUP THAT WANTED TO BUY COLDWELL BANKER'S RESIDENTIAL REAL ESTATE DIVISION FROM SEARS THAT GROUP CONSISTED OF COLDWELL BANKER'S TOP EXECUTIVES TEXAS INVESTOR ROBERT BASS AND BAIN CAPITAL OF BOSTON SEARS PNC AND THE BASS INVESTOR GROUP ALL DECLINED TO COMMENT ANALYSTS SAID THE DELAY CREATED BY THE DISCONTINUED TALKS ISN'T LIKELY TO HAVE A LASTING FINANCIAL IMPACT ON SEARS SEARS HAS BEEN TRYING TO SELL COLDWELL BANKER SINCE LAST SEPTEMBER WHEN IT ANNOUNCED A MASSIVE RESTRUCTURING THAT CALLS FOR IT TO DIVEST ITSELF OF ITS DEAN WITTER UNIT AND SELL 20 OF ITS ALLSTATE HOLDINGS IN ADDITION TO COLDWELL BANKER THE CHICAGO COMPANY SAID LATE LAST WEEK THAT ALL ITS PLANNED DIVESTITURES ARE STILL PROCEEDING ON SCHEDULE ACQUIRING COLDWELL BANKER'S MORTGAGE SERVICING UNIT WHOSE 272 BILLION MORTGAGE SERVICING PORTFOLIO STANDS AS THE THIRD LARGEST IN THE US WOULD FURTHER PNC'S EFFORT TO EXPAND ITS MORTGAGE BUSINESS BOTH BUSINESSES ORIGINATE ACQUIRE AND SERVICE RESIDENTIAL MORTGAGE LOANS LAST YEAR PNC BASED IN PITTSBURGH ACQUIRED A 14 BILLION MORTGAGE SERVICING PORTFOLIO IT'S UNCLEAR HOW MUCH EITHER COLDWELL BANKER UNIT WILL EVENTUALLY FETCH BUT ANALYSTS HAVE ESTIMATED THAT SEARS COULD COMMAND A TOTAL OF 500 MILLION FOR THE UNITS ANALYSTS HAVE SAID SEARS COULD LIKELY CHARGE A PREMIUM FOR ITS MORTGAGE BANKING BUSINESS BECAUSE CONSUMERS ARE CONTINUING THE TREND OF FINANCING THEIR HOMES THROUGH MORTGAGE BROKERS RATHER THAN BANKS AND THRIFTS SEARS PLANS TO USE PROCEEDS FROM THE COLDWELL BANKER SALE COMBINED WITH PROCEEDS FROM PUBLIC OFFERINGS OF ALLSTATE AND DEAN WITTER STOCK TO REDUCE DEBT SEARS ALREADY HAS EARNED 770 MILLION FROM AN INITIAL PUBLIC OFFERING OF 20 OF ITS DEAN WITTER HOLDINGS AND COULD EARN MORE THAN 2 BILLION FROM THE SALE OF 20 OF ITS ALLSTATE SHARES PEOPLE CLOSE TO THE NEGOTIATIONS INVOLVING COLDWELL BANKER'S RESIDENTIAL DIVISION SAY THOSE TALKS BROKE DOWN IN LATE APRIL AFTER SEARS REPORTED APRIL 20 THAT ITS COLDWELL BANKER UNIT HAD A LOSS OF 77 MILLION IN THE FIRST QUARTER THAT REPORT CREATED A SHARP DISAGREEMENT BETWEEN THE PARTIES OVER THE VALUE OF THE UNIT WHICH OPERATES MORE THAN 2000 OFFICES IN THE US UNTIL THEN NEGOTIATIONS HAD PROCEEDED SMOOTHER LARGELY ON THE STRENGTH OF COLDWELL BANKER'S FINANCIAL PERFORMANCE LAST YEAR BUOYED BY A STRENGTHENED REAL ESTATE MARKET AND COST CUTTING THE UNIT POSTED 1992 EARNINGS OF 74 MILLION COMPARED WITH EARNINGS OF 26 MILLION IN 1991 SEARS OFFICIALS ARE SAID TO BE NEGOTIATING CURRENTLY WITH OTHER PARTIES FOR THE SALE OF THE RESIDENTIAL REAL ESTATE DIVISION OF COLDWELL BANKER THE PARTIES WEREN'T IDENTIFIED 9305030078 930503 HEARD ON THE STREET HEAVY STOCK VOLUME SLUGGISH INDEXES MAY SPELL WOE BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMID SOME OF THE HEAVIEST TRADING IN STOCK MARKET HISTORY STOCK INDEXES HAVE BARELY BUDGED THIS YEAR THAT'S AN OMINOUS SIGN SOME MARKET WATCHERS SAY HOW COME IT HAS TO DO WITH A WALL STREET DANGER SIGNAL KNOWN AS DISTRIBUTION DISTRIBUTION IS A PROCESS IN WHICH EARLY BUYERS WHO HAVE MADE PROFITS IN STOCKS SELL THEIR SHARES TO LATER LESS SOPHISTICATED BUYERS IT USUALLY OCCURS AFTER A PROLONGED RISE IN THE MARKET AND IT PRODUCES FLAT PRICES FOR A WHILE OFTEN FOLLOWED BY A DECLINE WITH TONGUE ONLY PARTLY IN CHEEK DAVID SHULMAN CHIEF MARKET STRATEGIST AT SALOMON BROTHERS OFFERS A DEFINITION DISTRIBUTION HE SAYS MEANS THAT THE SMART FOLKS ARE SELLING TO THE LESSTHANSMART FOLKS IS DISTRIBUTION HAPPENING RIGHT NOW MANY MARKET PARTICIPANTS THINK SO UNCLE GEORGE AND AUNT EDITH ARE BUYING STOCKS FURIOUSLY THROUGH MUTUAL FUNDS BY CONTRAST PENSION FUNDS AND OTHER BIG INSTITUTIONS ARE QUITE RESTRAINED IN THEIR BUYING AND CORPORATIONS THROUGH STOCK OFFERINGS ARE NET SELLERS THE FLOOD OF BUYING BY SMALL INVESTORS HAS PUSHED TRADING VOLUME WAY UP JANUARY FEBRUARY MARCH AND APRIL WERE FOUR OF THE FIVE HEAVIEST TRADING MONTHS EVER ON THE NEW YORK STOCK EXCHANGE YET STOCKMARKET INDEXES ACT SLUGGISH FOR EXAMPLE THE DOW JONES EQUITY MARKET INDEX IS UP LESS THAN 1 FOR THE YEAR HUGE VOLUME AND STAGNANT PRICES ARE CLASSIC HALLMARKS OF DISTRIBUTION ACCORDING TO MANY TECHNICAL MARKET ANALYSTS STOCKS SOMETIMES RESUME CLIMBING AFTER A PERIOD OF DISTRIBUTION ANALYSTS SAY MORE OFTEN HOWEVER DISTRIBUTION PRECEDES A FALL IT LOOKS LIKE VERY HEAVY DISTRIBUTION SAYS RICHARD ARMS A WELLKNOWN TECHNICAL ANALYST AND HEAD OF ARMS COS AN ALBUQUERQUE NM MONEY MANAGEMENT FIRM APRIL WITH 584 BILLION SHARES TRADED WAS THE HEAVIESTVOLUME MONTH IN HISTORY EXCEPT FOR OCTOBER 1987 THE MONTH OF THE STOCK MARKET CRASH WHEN VOLUME WAS 609 BILLION SHARES TO MR ARMS SUCH HUGE VOLUME WITH SO LITTLE TO SHOW FOR IT CAN ONLY MEAN ONE THING SOMEONE IS SELLING WHENEVER THE PRICE GOES UP AS A RESULT THE MARKET LOOKS LIKE IT'S RUN INTO A WALL AT 3500 ON THE DOW JONES INDUSTRIAL AVERAGE THERE'S LOTS OF STOCK FOR SALE AT 3500 I THINK IT'S AN IMPORTANT SIGN THAT THERE'S GOING TO BE SOME PULLBACK AT LEAST ANDREW ADDISON A TECHNICAL ANALYST WHO WRITES A PAIR OF NEWSLETTERS ADDISON REPORT AND INSTITUTIONAL VIEW SAYS THE INDUSTRIAL AVERAGE IS STUCK BETWEEN 3375 AND 3475 A DANGER SIGN HE SAYS IS THAT VOLUME ON DOWN DAYS IS GREATER THAN VOLUME ON UP DAYS INDICATING THAT SELLERS ARE BECOMING THE DRIVING FORCE A FEW OTHER SIGNALS ALSO WORRY MR ADDISON THE ADVANCEDECLINE LINE A CUMULATIVE TOTAL OF ADVANCING STOCKS MINUS DECLINERS HAS BEEN TRENDING LOWER THE NUMBER OF STOCKS HITTING NEW HIGHS HAS BEEN FALLING FOR ABOUT TWO MONTHS GOLD STOCKS AND MORE RECENTLY GOLD BULLION PRICES HAVE BEEN INCHING UP A POSSIBLE WARNING OF CREEPING INFLATION AHEAD AFTER READING THESE ENTRAILS MR ADDISON TURNED BEARISH ON APRIL 19 FOLLOWING TWO YEARS AS A BULL HE THINKS A DOWNTURN HAS BEGUN AND WILL PROBABLY ACCELERATE IN MAY AND JUNE IF A DOWNTURN IS INDEED UNDER WAY IT HAS BEEN MILD SO FAR THE INDUSTRIAL AVERAGE PEAKED AT 347861 ON APRIL 16 AND CLOSED FRIDAY AT 342755 OFF 15 FROM THE TOP THE STANDARD & POOR'S 500STOCK INDEX PEAKED ON MARCH 10 AT 45633 AND IS DOWN 34 SINCE THEN SALOMON BROTHERS' MR SHULMAN IS LOOKING FOR STOCK PRICES TO DROP ABOUT 10 TALK OF HIGHER TAXES A DRIFT INTO POSSIBLE MILITARY ACTION IN BOSNIA FRICTIONS WITH TRADING PARTNERS AND HINTS OF HIGHER INFLATION ARE ALL IRRITANTS HE SAYS IF STOCK PRICES WERE LOW HE SAYS NONE OF THIS WOULD MATTER MUCH BUT STOCK PRICES ARE UNCOMFORTABLY HIGH BY STANDARD MEASURES SUCH AS PRICE/EARNINGS RATIOS ASSUMING DISTRIBUTION IS GOING ON NOT EVERYONE THINKS IT'S CAUSE FOR MUCH ALARM IT'S SORT OF A SNOOTY THEORY TO ASSUME THAT THE PUBLIC IS ALWAYS WRONG SAYS NED DAVIS HEAD OF NED DAVIS RESEARCH IN NOKOMIS FLA SMALL INVESTORS RIGHTLY SOLD STOCK STEADILY THROUGH MOST OF THE 1970S HE SAYS MR DAVIS EXPECTS THE MARKET'S NARROW TRADING RANGE TO CONTINUE FOR A WHILE BYRON WIEN CHIEF DOMESTIC EQUITY STRATEGIST AT MORGAN STANLEY SAYS PROFESSIONAL INVESTORS DON'T NECESSARILY KNOW SOMETHING THE LITTLE GUYS DON'T THERE'S NO EVIDENCE THAT ONE IS MORE SAGACIOUS THAN THE OTHER EVEN SO MR WIEN FINDS IT OMINOUS THAT COMPANIES ARE NET ISSUERS OF STOCK IN THE 1980S HE NOTES THEY WERE NET BUYERS THROUGH SHARE REPURCHASES AND ACQUISITIONS FREDRIC E RUSSELL A TULSA OKLA MONEY MANAGER RECKONS THE LITTLE GUY MAY OUTSMART THE PROS THIS TIME AROUND I'VE NEVER SEEN PROFESSIONAL MONEY MANAGERS MOVE IN TANDEM SO MINDLESSLY DOING WHATEVER THE FIRST MONKEY DOES HE SAYS IN PARTICULAR MR RUSSELL BELIEVES SELLING IS WAY OVERDONE IN CONSUMER STOCKS WITH GREAT BRAND NAMES SUCH AS KELLOGG GILLETTE AND TAMBRANDS STILL IT COULD BE DANGEROUS TO PUT TOO MUCH FAITH IN SMALL INVESTORS' MARKETTIMING ABILITY ONE STUDY SHOWS THAT INVESTORS HAVE IN THE PAST OFTEN JUMPED INTO MUTUAL FUNDS SHORTLY BEFORE MARKET DECLINES AT THE REQUEST OF THIS NEWSPAPER MITCHELL & CO A CONSULTING FIRM IN WALTHAM MASS STUDIED WHAT HAS HAPPENED WHEN MUTUAL FUND SALES WERE UNUSUALLY STRONG TO MEASURE THIS MITCHELL'S KRIS PETIT LOOKED AT THE RATIO OF MONTHLY DOMESTICSTOCK MUTUAL FUND SALES TO THE TOTAL MARKET VALUE OF ALL STOCKS ON THE BIG BOARD CALL IT THE MUTUAL FUND POPULARITY INDEX SIX TIMES BETWEEN 1960 AND 1987 THE MUTUAL FUND POPULARITY INDEX SURPASSED ITS PREVIOUS RECORD AND SOARED TO NEW HEIGHTS MR PETIT MEASURED WHAT HAPPENED AFTER EACH OF THESE PEAKS IN THE POPULARITY INDEX ON AVERAGE STOCKS FELL 835 IN THE SIX MONTHS FOLLOWING THE PEAK IT DOES LOOK LIKE THE AVERAGE MUTUALFUND BUYER IS THE BAG HOLDER OF LAST RESORT IN A LOT OF THESE MARKET SETBACKS SAYS DONALD W MITCHELL THE CONSULTING COMPANY'S CHAIRMAN SOME MARKET WATCHERS SAY THERE'S NOTHING TO WORRY ABOUT AS LONG AS SALES OF STOCK MUTUAL FUNDS STAY STRONG BUT BY THE MITCHELL & CO MEASURE A PEAK IN THE MUTUAL FUND POPULARITY INDEX OCCURRED IN DECEMBER 1992 FUND SALES WERE STRONGER IN MARCH THAN IN DECEMBER BUT AS A PERCENTAGE OF THE TOTAL MARKET THEY WEREN'T A RECORD THAT SUGGESTS THAT A DECLINE IS LIKELY BY JUNE MR MITCHELL SAYS HIS OTHER STOCKMARKET INDICATORS GIVE THE SAME MESSAGE IN FACT FOR THE FIRST TIME IN MEMORY ALL 15 OF HIS INDICATORS ARE NEGATIVE SOME OF THESE ARE CONVENTIONAL MARKET GAUGES OTHERS ARE THINGS SUCH AS GOVERNMENT REGULATORY UNCERTAINTY A LIKELY CHANGE IN TAX RATES AND THE TREND IN LARGECOMPANY LAYOFFS I SUSPECT WE'RE CLOSE TO THE EDGE OF THE WATERFALL MR MITCHELL SAYS HE PREDICTS A SUBSTANTIAL DROP IN STOCKS DURING MAY OR JUNE 9305030077 930503 BUSINESS & RACE BY LEON E WYNTER TRYING TO CREATE JOBS IN THE INNER CITY ISN'T THE FASTEST WAY TO REDUCE HIGH UNEMPLOYMENT THERE MANY URBAN PLANNERS ARE CONCLUDING THEY URGE THAT GOVERNMENT PROGRAMS TAKE PEOPLE WHERE THE JOBS ARE TO THE SUBURBS URBAN REDEVELOPMENT IS A WORTHWHILE MISSION BUT THE MARKET POINTS TOWARD THE SUBURBS AS THE EFFICIENT LOCATION FOR WAREHOUSES DISTRIBUTION LIGHT MANUFACTURING AND LOWERSKILL SERVICES SAYS MARK ALAN HUGHES A HARVARD UNIVERSITY RESEARCHER WHO HAS STUDIED THE PROBLEM FOR THE URBAN INSTITUTE A WASHINGTON THINK TANK MR HUGHES ANALYZED CENSUS BUREAU DATA AND FOUND THAT MORE THAN 90 OF ALL NEW JOBS IN THE '80S WERE CREATED IN THE SUBURBS HE AND OTHERS THINK GOVERNMENTS AT ALL LEVELS SHOULD INVEST MORE IN PROGRAMS THAT COMBINE TRANSPORTATION INFORMATION AND COUNSELING SERVICES TO HELP BRING TOGETHER PROSPECTIVE EMPLOYEES AND EMPLOYERS HUNGRY FOR LOWERWAGE WORKERS SEN BILL BRADLEY A DEMOCRAT FROM NEW JERSEY IS ABOUT TO INTRODUCE LEGISLATION TO PUT 15 MILLION OF FEDERAL FUNDS INTO TESTING MOBILITY PROGRAMS IN SEVERAL METROPOLITAN AREAS TO SAY THAT AN URBAN RESIDENT CAN'T GET AN ENTRYLEVEL JOB UNTIL THE CITY REVIVES IS TO SAY THAT A GENERATION WILL BE WASTED MR BRADLEY SAID IN A RECENT SPEECH SOME EFFORTS HAVE ALREADY BEGUN ACCEL TRANSPORTATION RUN BY THE RESIDENT MANAGEMENT GROUP AT A CHICAGO PUBLIC HOUSING PROJECT CARRIES 120 RIDERS A DAY FROM PROJECTS IN THE CITY TO JOBS IN THE SUBURBS IT GETS HALF OF ITS FUNDING FROM GOVERNMENTAL SOURCES SOME BUSINESSES AROUND THE COUNTRY HELP INNERCITY EMPLOYEES GET TO WORK YET SOME URBAN EMPLOYMENT EXPERTS STILL THINK THE BEST SOLUTION IS PUTTING JOBS IN INNER CITIES I'D RATHER PUT THE MONEY INTO BRINGING THE JOBS AROUND THE CORNER SAYS REGINALD MORRIS EXECUTIVE DIRECTOR OF YOUTH JOB AWARENESS A LOS ANGELES EMPLOYMENT PROJECT IF OUR COMMUNITIES HAD THE JOBS WE WOULDN'T HAVE ALL THE SOCIAL PROBLEMS IS CORPORATE AMERICA READY FOR THE BRAIDED HAIRSTYLES INCREASINGLY POPULAR AMONG AFRICANAMERICAN WOMEN GROWING CONFIDENCE AND THE DRAWBACKS OF CHEMICAL HAIR STRAIGHTENERS ARE BRINGING MORE SUCCESSFUL BLACK WOMEN TO BRAIDS MY CUSTOMERS HAVE FIGURED OUT THEY CAN GET AWAY WITH IT OR THEY'RE PREPARED TO FIGHT SAYS TULANI KINARD OF TULANI'S REGAL MOVEMENT A NEW YORK SALON THOSE WOMEN WHO SAY THEY WON'T BRAID THEIR HAIR ARE NOT DOING IT BECAUSE OF THE UNWRITTEN RULES DIANE ASHLEY DIRECTOR OF RESEARCH WITH GOULD & MCCOY AN EXECUTIVESEARCH FIRM IN NEW YORK ECHOES THAT VIEW AND ADDS THE BRAIDS MAY PUT PEOPLE CONDUCTING JOB INTERVIEWS ILL AT EASE ACCEPTABLE LOOKS FOR BLACK WOMEN HAVE EXPANDED TO INCLUDE SHORT AFROS SAYS MAURY HANIGAN A NEW YORK CONSULTANT BUT BRAIDS MAY BRING ATTENTION TO THE FACT THAT THE CANDIDATE COMES FROM A DIFFERENT CULTURE WITH DIFFERENT VALUE SYSTEMS SHE SAYS THAT STRIKES FEAR INTO THE MINDS OF HIRING MANAGERS BRENDA SCHOFIELD HEAD OF AFFIRM ATIVEACTION PROGRAMS AT KRAFT GENERAL FOODS NORTHFIELD ILL DISAGREES I DON'T THINK IT'S TRUE THAT WEARING BRAIDS DETERS ADVANCEMENT SHE SAYS BUT SHE ESTIMATES THAT FEWER THAN 1 OF BLACK WOMEN MANAGERS IN A NATIONAL NETWORKING GROUP SHE MANAGES WEAR BRAIDS MOST HAVE STRAIGHTENED HAIR BLACK AND HISPANIC TELEVISION PREFERENCES DIFFER FROM THOSE OF THE NATION AS A WHOLE BUT HAVE MUCH IN COMMON WITH YOUNGER AMERICANS THE TOP 10 SHOWS AMONG BLACKS DON'T OVERLAP AT ALL WITH THE NATIONAL TOP 10 AND THE HISPANIC TOP 10 INCLUDES ONLY TWO IN THE BROADER TOP 10 ACCORDING TO AC NIELSEN RATINGS DATA BUT HEAVY MINORITY VIEWING ADDED BETWEEN ONE AND THREE RATING POINTS FOR 19 SHOWS IN THE 199293 SEASON UP FROM 17 A YEAR EARLIER A RATING POINT EQUALS 1 OF US TELEVISION HOUSEHOLDS FOX BROADCASTING A NEWS CORP UNIT AIRS NINE OF THOSE 19 SHOWS BLACK VIEWERS ELEVATED FOX'S IN LIVING COLOR TO A 48THPLACE RATING IT WOULD HAVE BEEN 80TH WITHOUT THEM NBC'S FRESH PRINCE OF BEL AIR WHICH RANKED 19TH WOULD HAVE BEEN 36TH WITHOUT BLACK VIEWERS IN THE 18TO24 AGE GROUP FIVE OF THE TOP 10 SHOWS AMONG BLACK MEN INCLUDING FOX'S MARRIED WITH CHILDREN RANK IN THE TOP 10 FOR ALL MEN THOSE AGES BLACK WOMEN SHARE FOUR TOP 10 SHOWS SUCH AS NBC'S BLOSSOM WITH ALL WOMEN 18 TO 24 THE YOUNGER AUDIENCE HAS A WIDE INTEREST AND ACCEPTANCE OF CROSSRACIAL SHOWS AND A LOT OF THE TRENDS ORIGINATE IN THE MINORITY POPULATION SAYS ANDREW FESSELL FOX'S SENIOR VICE PRESIDENT FOR RESEARCH DOUG ALLIGOOD VICE PRESIDENT OF SPECIAL MARKETS FOR BBDO A NEW YORK ADVERTISING AGENCY THAT ANALYZED THE NIELSEN DATA SAYS BUYING ADS ON THE TOP BLACKRATED SHOWS ISN'T EFFICIENT FOR REACHING BLACKS ALONE BECAUSE MOST OF THEIR AUDIENCE IS WHITE BUT BUYING THESE SHOWS IS VERY EFFICIENT WHEN YOU HAVE A MESSAGE THAT WORKS MULTIRA CIALLY MR ALLIGOOD SAYS IT WOULD BE TOUGH TO BUY YOUNG WHITES WITHOUT USING THESE BLACKINTEREST SHOWS UNIVISION SAID NO MAS TO MAS THE NATION'S LARGESTCIRCULATION SPANISHLANGUAGE MAGAZINE THE SPANISH TV NETWORK SAYS IT SHUT THE FOURYEAROLD GENERALINTEREST MONTHLY IN APRIL TO FOCUS ON BROADCASTING ROGER TOLL THE PUBLISHER SAYS SOFT ADVERTISER SUPPORT SLOWED MAS'S ENTRY INTO THE BLACK HISPANICS HAVE THE LOWEST RATE OF CONDOM PURCHASES AMONG MINORITIES ACCORDING TO A STUDY BY MARKET SEGMENT RESEARCH CORAL GABLES FLA ONLY 9 OF HISPANICS SAID LAST FALL THAT THEY HAD PURCHASED CONDOMS IN THE PREVIOUS MONTH VS 16 OF BLACKS AND 12 OF ASIANS 9305030076 930503 BUSINESS BRIEF MATSUSHITA ELECTRIC INDUSTRIAL CO JOINT VENTURE WILL PRODUCE AIR CONDITIONERS IN CHINA MATSUSHITA ELECTRIC INDUSTRIAL CO OF JAPAN ANNOUNCED TWO JOINT VENTURES FRIDAY WITH WANBAO ELECTRICAL APPLIANCE GROUP CORP OF GUANGZHOU CHINA TO MAKE AIR CONDITIONERS AND AIRCONDITIONER COMPRESSORS THE VENTURES MATSUSHITAWANBAO GUANGZHOU AIR CONDITIONING CO AND MATSUSHITAWANBAO GUANGZHOU COMPRESSOR CO WILL BE ESTABLISHED BY MIDYEAR ONCE PERMISSION FROM THE LOCAL GOVERNMENT IS OBTAINED PRODUCTION IS SCHEDULED TO START IN OCTOBER 1994 THE INVESTMENT IN THE AIRCONDITIONER VENTURE WILL BE 31 BILLION YEN 279 MILLION WITH PRODUCTION EXPECTED TO BE 100000 UNITS IN THE FIRST YEAR AND 300000 A YEAR THEREAFTER THE INVESTMENT IN THE COMPRESSOR VENTURE WILL BE 34 BILLION YEN PRODUCTION OF 300000 UNITS A YEAR IS PLANNED FOR THE FIRST YEAR AFTER WHICH THE TARGET WILL BE 1 MILLION UNITS ANNUALLY 9305030075 930503 CHRYSLER'S PRICES ON MOST MODELS INCREASE AGAIN STRONG DEMAND STRUGGLES OF JAPANESE PROMPT AUTO MAKER'S INITIATIVE BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT BUOYED BY STRONG DEMAND FOR ITS PRODUCTS CHRYSLER CORP RAISED PRICES ON MOST OF ITS BESTSELLING CARS AND TRUCKS IN A MOVE MADE EASIER BY HIGHER PRICES FOR JAPANESEMADE VEHICLES IT WAS THE SECOND TIME CHRYSLER BASED IN HIGHLAND PARK MICH HAS RAISED PRICES DURING THE 1993 MODEL YEAR WHICH OFFICIALLY BEGAN LAST OCT 1 CHRYSLER'S MOVE COMES AT A TIME WHEN JAPANESE AUTO MAKERS ARE BOOSTING PRICES SHARPLY IN THE US TO OFFSET THE FALLING VALUE OF THE DOLLAR COMPARED WITH THE JAPANESE YEN THE PRICE RISES ANNOUNCED BY THE NO 3 US AUTO MAKER RANGED FROM 50 TO 200 A VEHICLE AND COVERED MOST OF THE AUTO MAKER'S MOSTPROFITABLE MODELS INCLUDING MINIVANS THE NEW LH MIDSIZED SEDANS INCLUDING THE DODGE INTREPID AND JEEP SPORT UTILITY VEHICLES FOR EXAMPLE THE BASE PRICE OF A 1993 FOURWHEELDRIVE JEEP CHEROKEE NOW STANDS AT 14882 UP 2 FROM 14632 AT THE START OF THE MODEL YEAR I THINK THIS IS A CASE OF ONE OF THE STRONGEST DOMESTIC COMPANIES FLEXING ITS MUSCLES SAID MARYANN KELLER AN AUTO INDUSTRY ANALYST WITH FURMAN SELZ INC ANOTHER SIGN OF CHRYSLER'S AGGRESSIVENESS IS THAT IT'S INITIATING THIS ROUND OF INCREASES INSTEAD OF FOLLOWING FORD MOTOR CO OF DEARBORN MICH WHICH LED THE LAST ROUND OF INDUSTRY PRICE RISES IN JANUARY A FORD SPOKESWOMAN SAID THE AUTO MAKER HAD NO PLANS FOR FUTURE PRICE RISES GENERAL MOTORS CORP OFFICIALS ALSO INDICATED LAST WEEK THEY MAY SIT OUT ANOTHER ROUND OF PRICE RISES GM IS PROMOTING AN AGGRESSIVE VALUE PRICING STRATEGY FOR MANY OF ITS OLDSMOBILE BUICK AND CHEVROLET MODELS EFFECTIVELY CUTTING PRICES IN HOPES OF STEMMING THE STEADY SLIDE IN MARKET SHARE FOR ITS US PASSENGER CARS A GM SPOKESMAN FRIDAY SAID THE COMPANY HAS NO IMMEDIATE PLANS FOR PRICE INCREASES ECHOING COMMENTS EARLIER IN THE WEEK BY CHIEF FINANCIAL OFFICER G RICHARD WAGONER FOR CHRYSLER WHICH IS RIDING A STABLE OF STRONG NEW PRODUCTS THE LATEST PRICING MOVES SHOULD HAVE LITTLE IMPACT ON SALES OR MARKET SHARE ANALYSTS SAID SOME OF THE PRICE INCREASES ARE MINIMAL FOR EXAMPLE 50 ON A PLYMOUTH SUNDANCE WHICH NOW SELLS AT A BASE PRICE OF 8447 UP LESS THAN 1 FROM THE INITIAL MODELYEAR BASE PRICE OF 8397 THE VAST MAJORITY OF THESE INCREASES WILL DISAPPEAR IN THE HAGGLING PROCESS CUSTOMERS AND EVEN DEALERS MAY NOT EVEN SEE ANY OF THAT MONEY SAID JOSEPH PHILLIPPI AN AUTO INDUSTRY ANALYST FOR SHEARSON LEHMAN BROTHERS INC CHRYSLER BLAMED RISING COSTS FOR PROMPTING THE LATEST ROUND OF PRICE INCREASES ADDING THAT COSTS CONTINUE TO RISE FOR ITEMS SUCH AS HEALTH CARE AND RAW MATERIALS AND OFFSET SAVINGS ACHIEVED IN PRODUCT DEVELOPMENT AND MANUFACTURING WE HAVE TRIED TO MAINTAIN COMPETITIVENESS IN KEEPING OUR COSTS DOWN AND WE TRY TO HOLD OFF ON RAISING PRICES AS LONG AS WE CAN A CHRYSLER SPOKESWOMAN SAID BUT ANALYSTS SAID US AUTO MAKERS WILL REMAIN TEMPTED TO RAISE PRICES AS LONG AS THEIR PRODUCTS CONTINUE TO ENJOY A SIGNIFICANT PRICE ADVANTAGE AGAINST VEHICLES MADE BY JAPANESE AUTO MAKERS WHICH ARE STRUGGLING WITH A STRONG YEN AND SLUGGISH VEHICLE SALES IN JAPAN FOR EXAMPLE HONDA MOTOR CO'S ACCORD SEDAN ONCE AMERICA'S BESTSELLING PASSENGER CAR HAS BEEN SELLING FOR 1400 MORE THAN COMPARABLY EQUIPPED LUMINA SEDANS BY CHEVROLET I THINK WITH AS MUCH AS THE JAPANESE HAVE HAD TO RAISE PRICES OVER THE LAST 18 MONTHS DETROIT WOULD HAVE TO GO A LONG WAY BEFORE PRICING ITSELF OUT OF THE MARKET SAID JOHN CASESA AN ANALYST WITH WERTHEIM SCHRODER & CO 9305030074 930503 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN WESTERN NATIONS ADOPTED A PLAN TO CLEAN UP POLLUTION IN THE FORMER EAST BLOC BUT DIDN'T RESOLVE HOW TO PAY FOR IT IN A CONFERENCE IN SWITZERLAND ABOUT 50 ENVIRONMENT OFFICIALS FROM EUROPE THE US AND CANADA AGREED ON THE PROGRAM CALLING FOR QUICK ACTION ON THE MOST POLLUTED SITES IN EASTERN AND CENTRAL EUROPE RECESSIONHIT WESTERN GOVERNMENTS HAVE PLEDGED JUST 30 MILLION TO THE EFFORT BUT EVENTUALLY WILL HAVE TO PROVIDE LARGESCALE FINANCIAL AID DELEGATES WARNED THE ENVIRONMENTAL PLAN EMPHASIZES THAT FORMER SOVIETBLOC NATIONS MUST PAY MORE THAN 90 OF THE COSTS TO CORRECT SEVERE POLLUTION RANGING FROM INDUSTRIAL SMOG TO TOXICWASTE DUMPS A LEGACY OF DECADES OF COMMUNIST MANAGEMENT THE PROGRAM NOTES THAT WESTERN AID MAY BE NEEDED FOR PROBLEMS POSING THE WORST HEALTH RISKS BUT CALLS ON EASTERN STATES TO SET UP THEIR OWN ENVIRONMENTAL REGULATIONS AND SEEK COMMERCIAL INVESTMENTS FOR MOST PROJECTS THE NORWEGIAN GOVERNMENT PROPOSED LIFTING RESTRICTIONS ON AIRLINES DEREGULATION OF DOMESTIC SERVICE WOULD BEGIN NEXT APRIL FOREIGN CARRIERS COULD COMPETE FREELY STARTING IN 1997 THE PROPOSAL WHICH IS EXPECTED TO WIN PARLIAMENTARY APPROVAL WOULD PROMPT COMPETITION BETWEEN THE PRIVATE NORWEGIAN AIRLINE BRAATHENS SAFE AND SCANDINAVIAN AIRLINES SYSTEM OWNED BY NORWAY SWEDEN AND DENMARK THE PLAN EXCLUDES UNPROFITABLE BUT ESSENTIAL ROUTES IN SPARSELY POPULATED NORWEGIAN AREAS NOW SERVED BY THE STATESUBSIDIZED WIDEROE AIRLINE THE LOWER HOUSE OF POLAND'S PARLIAMENT PASSED A REVISED PRIVATIZATION PLAN ON WHICH THE GOVERNMENT HAD STAKED ITS POLITICAL FUTURE THE INITIAL PLAN WAS DEFEATED MARCH 18 THE PROGRAM AIMS TO SELL OFF MORE THAN 600 OF THE LARGEST STATEOWNED COMPANIES THROUGH INTERMEDIARY HOLDING FUNDS SHARES IN THOSE FUNDS WOULD BE DISTRIBUTED TO ALL POLES AND LISTED ON WARSAW'S STOCK EXCHANGE THE SENATE AND THE PRESIDENT ARE EXPECTED TO APPROVE THE PLAN WITHIN A MONTH ANDORRA A TINY COUNTRY BETWEEN FRANCE AND SPAIN BECAME A SOVEREIGN STATE FRENCH PRESIDENT FRANCOIS MITTERRAND SIGNED ANDORRA'S NEW CONSTITUTION ENDING A 715YEAROLD ARRANGEMENT THAT DEFINED ANDORRA AS A COPRINCIPALITY RULED BY FRANCE AND THE BISHOP OF URGEL IN SPAIN ANDORRAN VOTERS LAST MONTH APPROVED THE CONSTITUTION WHICH ESTABLISHES LEGISLATIVE EXECUTIVE AND JUDICIAL BRANCHES IN THE MOUNTAIN ENCLAVE THAT IS A FIFTH THE SIZE OF RHODE ISLAND CHINA IMPOSED NEW STANDARDS TO CLAMP DOWN ON THE COUNTRY'S FLEDGLING FUTURES MARKETS MANY COMPANIES HAVE MADE MARKETS ON THEIR OWN SINCE THE FIRST FUTURES EXCHANGE FOR GRAIN OPENED IN 1990 MORE THAN 20 FUTURES MARKETS HAVE OPENED SINCE THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE ISSUED REQUIREMENTS THAT COULD FORCE SMALL TRADING COMPANIES OUT OF BUSINESS MORE THAN 50 SPECIALIZED FUTURES AND CONSULTING FIRMS AND ABOUT 300 COMPANIES ENGAGED IN FUTURES BUSINESSES MUST REREGISTER AND MEET NEW MINIMUMS GOVERNING CAPITAL AGENTS ACCOUNTING SYSTEMS OPERATIONS AND COMMUNICATIONS INTERNATIONAL TERRORISM LAST YEAR FELL TO ITS LOWEST LEVEL SINCE 1975 THE US STATE DEPARTMENT SAID THE AGENCY'S ANNUAL REPORT ON WORLD TERRORISM TRENDS AND THREATS TALLIED 361 INCIDENTS IN 1992 DOWN 36 FROM 567 IN 1991 FOR THE THIRD YEAR IN A ROW LATIN AMERICA HAD THE MOST EXTREME INCIDENTS AMONG COUNTRIES THE US LISTS AS TERRORISM SPONSORS IRAN WAS DESIGNATED THE MOST DANGEROUS BUT NORTH KOREA APPEARS DISINCLINED TO PURSUE A TERRORIST AGENDA AND SYRIA HASN'T BEEN IMPLICATED IN TERRORIST ACTS SINCE 1986 THE DIFFERENCE IN PAY FOR JAPANESE COMPANIES' SENIOR MANAGERS AND NEW EMPLOYEES ALREADY SMALL AMONG INDUSTRIALIZED COUNTRIES HAS SHRUNK FURTHER BY CONTRAST A US STUDY IN 1991 FOUND THAT MAJOR AMERICAN CORPORATIONS PAID TOP EXECUTIVES 53 TIMES MORE THAN THEIR EMPLOYEES' AVERAGE WAGES THOUGH THAT SURVEY PUT THE JAPANESE MULTIPLE AT 17 AT JAPANESE COMPANIES WITH AT LEAST 30 EMPLOYEES ANNUAL WORKING HOURS FELL BELOW 2000 FOR THE FIRST TIME IN THE YEAR ENDED MARCH 31 HOURS PER EMPLOYEE DECLINED 27 TO 1957 MAINLY BECAUSE OF LESS OVERTIME AMID THE COUNTRY'S ECONOMIC SLOWDOWN THE TOTAL INCLUDED 1813 REGULAR HOURS DOWN 14 FROM A YEAR EARLIER AND 144 OVERTIME HOURS OFF 15 JAPAN HOPES TO CUT WORKERS' ANNUAL HOURS TO 1800 IN FOUR YEARS MACAO WILL SELL 556 ACRES OF GOVERNMENT LAND THIS YEAR FOR HOUSING OFFICES COMMERCIAL BUILDINGS AND PUBLIC SERVICES THE PORTUGUESE ENCLAVE REVERTS TO CHINESE CONTROL IN LATE 1999 A SEVERE DROUGHT IN CHINA HAS PARCHED 20 OF THE COUNTRY'S CULTIVATED LAND THREATENING MILLIONS OF ACRES OF CROPS IN 17 PROVINCES AND LEAVING 168 MILLION PEOPLE AND 83 MILLION HEAD OF LIVESTOCK WITHOUT DRINKING WATER THE DRY SPELL THAT BEGAN LAST WINTER HAS DEVASTATED THE NORTHERN WHEATGROWING REGION 9305030073 930503 BUSINESS BRIEF BAYERISCHE VEREINSBANK AG GERMAN BANK POSTS INCREASE IN PARTIAL OPERATING PROFIT BAYERISCHE VEREINSBANK AG A MUNICH GERMANYBASED REGIONAL BANK SAID ITS GROUP PARTIAL OPERATING PROFIT ROSE 44 IN THE FIRST QUARTER OF 1993 COMPARED WITH THREETWELFTHS OF THE 1992 TOTAL PARTIAL OPERATING PROFIT WHICH INCLUDES PRETAX INTEREST AND COMMISSION INCOME LESS COSTS AND EXCLUDES GAINS AND LOSSES FROM THE BANK'S OWN TRADING ACTIVITIES WAS 386 MILLION MARKS 244 MILLION IN THE FIRST QUARTER OF 1993 THE BANK SAID THE COMPARATIVE PREVIOUSYEAR FIGURE IS 369 MILLION MARKS CALCULATED AS THREETWELFTHS OF THE 1992 TOTAL OPERATING PROFIT OF 148 BILLION MARKS THE BANK SAID BAYERISCHE VEREINSBANK IS SATISFIED WITH THE START OF THE NEW FISCAL YEAR SAID ALBRECHT SCHMIDT CHAIRMAN 9305030072 930503 BUSINESS BRIEF CHAMBERS DEVELOPMENT CO CONTRACTS OF OVER 20 MILLION SIGNED IN PAST FOUR MONTHS CHAMBERS DEVELOPMENT CO PITTSBURGH SAID THAT OVER THE PAST FOUR MONTHS IT HAS SIGNED WASTECOLLECTION TRANSPORTATION AND DISPOSAL CONTRACTS TOTALING MORE THAN 20 MILLION IN EXPECTED REVENUE OVER THEIR TERMS THE WASTE MANAGEMENT CONCERN SAID IT RECEIVED A 10YEAR 10 MILLION CONTRACT FROM DORCHESTER COUNTY SC ALSO IN SOUTH CAROLINA CHAMBERS RECEIVED CONTRACTS FROM FAIRFIELD AND KERSHAW COUNTIES WITH EXPECTED REVENUE OF 25 MILLION IN ADDITION THE COMPANY RECEIVED A THREEYEAR 1 MILLION CONTRACT FROM CEDARTOWN GA IN PENNSYLVANIA CHAMBERS WON 18 MUNICIPAL CONTRACTS EXTENDING OVER THE NEXT ONE TO FIVE YEARS AND TOTALING 66 MILLION 9305030071 930503 BUSINESS BRIEF TAP AIR PORTUGAL LINE GETS EMERGENCY LOAN TO PAY FULL APRIL WAGES TAP AIR PORTUGAL NEGOTIATED AN EMERGENCY LOAN FROM A CONSORTIUM OF BANKS TO ENABLE IT TO MAKE FULL PAYMENT OF APRIL WAGES TO ITS 10000 EMPLOYEES TAP SPOKESMAN ALVES FERNANDES SAID THE CONSORTIUM LED BY PORTUGAL'S BANCO ESPIRITO SANTO GRANTED THE STATEOWNED AIRLINE THE LOAN AFTER RECEIVING GUARANTEES FROM THE GOVERNMENT THE LOAN WILL EASE TAP'S CASH PROBLEMS OVER THE NEXT SEVERAL MONTHS MR FERNANDES SAID HE REFUSED TO COMMENT ON THE SIZE OR THE TERMS OF THE LOAN THE EMERGENCY FINANCING AVERTED A CASH SHORTAGE CRISIS THAT LED COMPANY OFFICIALS TO NOTIFY EMPLOYEES BY MAIL ON WEDNESDAY THAT THEY WOULD RECEIVE ONLY 50 TO 75 OF THEIR SALARIES AT THE END OF THE MONTH WITH THE DEFICIT TO BE MADE UP AS SOON AS FUNDS WERE AVAILABLE 9305030070 930503 BUSINESS BRIEF SAFECARD SERVICES INC SUIT AGAINST IRS IS DROPPED IN THE WAKE OF RESIGNATIONS SAFECARD SERVICES INC SAID IT DROPPED LEGAL PROCEEDINGS AGAINST THE INTERNAL REVENUE SERVICE AND ITS AGENTS SAFECARD WHICH NOTIFIES CREDITCARD ISSUERS OF LOST OR STOLEN CARDS FILED SUIT LAST OCTOBER IN FEDERAL DISTRICT COURT IN FORT LAUDERDALE FLA ACCUSING IRS AGENTS OF CONDUCTING AN UNCONSTITUTIONAL AND WARRANTLESS SEARCH AND SEIZURE THE IRS SEARCHED SAFECARD'S OFFICES IN 1988 DURING AN INVESTIGATION BUT NEVER FILED CHARGES AGAINST THE COMPANY OR ITS OFFICERS FORT LAUDERDALEBASED SAFECARD ALSO SAID IT WOULD NOT APPEAL THE IRS'S APRIL 1 DENIAL OF AN ADMINISTRATIVE CLAIM THE COMPANY HAD FILED WITH THE AGENCY LAST FALL THE IRS REJECTED THE CLAIM AS UNTIMELY SAFECARD GAVE NO REASON FOR ITS DECISIONS HOWEVER LATE LAST YEAR THE COMPANY'S FOUNDERS PETER AND STEVEN HALMOS RESIGNED THEIR RESPECTIVE POSTS AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER DURING A DISPUTE IN WHICH THE BOARD CRITICIZED THE COMPANY'S LITIGIOUSNESS ACCORDING TO A BOARD MEMBER 9305030069 930503 BUSINESS BRIEF ZAPATA CORP LAWSUIT SEEKS AN INJUNCTION AGAINST DEAL WITH NOREX ZAPATA CORP HOUSTON SAID A MAJOR SHAREHOLDER FILED A LAWSUIT IN DELAWARE SEEKING TO ENJOIN ZAPATA FROM COMPLETING ITS TRANSACTION WITH NOREX AMERICA INC THE TRANSACTION WOULD RAISE MORE THAN 111 MILLION FOR ZAPATA FROM THE ISSUANCE OF DEBT AND EQUITY ZAPATA IS SEEKING TO REFINANCE SUBSTANTIALLY ALL ITS LONGTERM DEBT WITH NOREX A UNIT OF NOREX PLC OF LONDON WHICH INVESTS IN THE MARINE OIL AND GAS INDUSTRY IF THE DEAL IS COMPLETED ZAPATA WOULD ISSUE ABOUT 15 MILLION COMMON SHARES TO NOREX INCREASING NOREX'S STAKE TO 15 OR 20 MILLION SHARES FROM 5 MILLION SHARES ZAPATA SAID THE LAWSUIT FILED BY MALCOLM I GLAZER WHO CURRENTLY OWNS ABOUT A 40 STAKE WILL BE HEARD IN COURT MAY 10 A DECISION IS EXPECTED SHORTLY SAID THE OIL AND NATURAL GAS SERVICES AND PRODUCTION COMPANY 9305030068 930503 BUSINESS BRIEF SEGA ENTERPRISES LTD VIDEOGAME SOFTWARE SUITS ARE SETTLED WITH ACCOLADE SEGA ENTERPRISES LTD OF TOKYO US UNIT SEGA OF AMERICA INC AND ACCOLADE INC SAID THEY SETTLED A VIDEOGAME SOFTWARE DISPUTE SEGA OF AMERICA REDWOOD CITY CALIF WHICH MAKES AND MARKETS VIDEOGAME PLAYERS HAD FILED SUIT AGAINST CLOSELY HELD ACCOLADE ACCUSING THE SAN JOSE CALIF COMPANY OF COPYING SEGA'S SOFTWARE CODE FOR A LINE OF VIDEO GAMES ACCOLADE IN TURN COUNTERSUED SEGA FOR ALLEGED UNFAIR BUSINESS PRACTICES AND TRADEMARK INFRINGEMENT UNDER TERMS OF AN OUTOFCOURT SETTLEMENT SEGA GRANTED ACCOLADE A LICENSE TO DEVELOP SOFTWARE FOR SEGA'S GENESIS AND GAME GEAR VIDEO GAME SYSTEMS BOTH SIDES AGREED TO BEAR THEIR OWN COSTS FROM THE SUITS THAT WERE FILED IN US DISTRICT COURT IN SAN FRANCISCO 9305030067 930503 BUSINESS BRIEF CEMENTOS MEXICANOS SA FIRSTQUARTER NET ROSE 33 ON A 56 INCREASE IN SALES CEMENTOS MEXICANOS SA MEXICO'S LARGEST CEMENT PRODUCER SAID FIRSTQUARTER NET INCOME ROSE 33 TO 1086 MILLION NEW PESOS 351 MILLION FROM 1052 MILLION NEW PESOS A YEAR AGO IN DOLLAR TERMS CEMEX SAID CONSOLIDATED GROUP SALES WERE 679 MILLION IN THE QUARTER A 56 INCREASE FROM 436 MILLION A YEAR EARLIER NORTH AMERICAN OPERATIONS US AND MEXICO REPRESENTED 80 OF GROUP SALES OR 542 MILLION SPANISH OPERATIONS REGISTERED SALES OF 137 MILLION IN THE QUARTER OR 20 OF THE TOTAL CEMEX ATTRIBUTED SALES GROWTH TO A SHARP UPTURN IN DOMESTIC SALES OF CEMENT AND READYMIX CEMENT UP 19 AND 24 RESPECTIVELY SALES WERE ALSO BOOSTED BY A 7 RISE IN THE LIST PRICE OF CEMENT IN OCTOBER AS WELL AS THE ENDING OF CERTAIN WHOLESALER DISCOUNTS AT THE END OF 1992 9305030066 930503 BUSINESS BRIEF COMPTRONIX CORP PROFIT POSTED FOR 1ST QUARTER AGAINST LOSS A YEAR EARLIER COMPTRONIX CORP POSTED A SLIGHT PROFIT FOR THE FIRST QUARTER SHOWING THAT THE SCANDALPLAGUED MAKER OF ELECTRONICS PARTS MIGHT BE RECOVERING FROM LOSSES IT TOOK AFTER TOP MANAGEMENT FALSIFIED ITS ACCOUNTING COMPTRONIX REPORTED NET INCOME OF 25600 OR LESS THAN ONE CENT A SHARE ON SALES OF 538 MILLION FOR THE QUARTER ENDED APRIL 4 THAT COMPARES WITH A RESTATED LOSS OF 12 MILLION OR 11 CENTS A SHARE ON SALES OF 22 MILLION FOR THE 1992 FIRST QUARTER THE COMPANY RESTATED ITS RESULTS FOLLOWING THE REVELATION IN NOVEMBER THAT TOP EXECUTIVES OVERSTATED PROFITS SINCE 1989 THE COMPANY ALSO APPOINTED A NEW FINANCIAL EXECUTIVE WHICH FOLLOWS FEBRUARY'S DISMISSAL OF PAUL MEDLIN WHO HAD BEEN SUSPENDED AS CONTROLLER AND TREASURER WHEN THE SCANDAL WAS REPORTED MARK ZORKO 41 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER HE MOST RECENTLY SERVED AS CHIEF FINANCIAL OFFICER AT INVERNESS CASTINGS CORP A CLOSELY HELD MAKER OF PARTS FOR AUTOMOBILES AND OFFICE EQUIPMENT IN BANGOR MICH 9305030065 930503 EC COMMISSION GIVES THE GREEN LIGHT TO TWO VENTURES AND TWO ACQUISITIONS SPECIAL TO THE WALL STREET JOURNAL BRUSSELS THE EUROPEAN COMMUNITY COMMISSION CLEARED TWO JOINT VENTURES AND ALLOWED TWO ACQUISITIONS THE COMMISSION SAID IT CLEARED A JOINT VENTURE BETWEEN PHILIPS ELECTRONICS NV THOMSONCSF AND SOCIETE D'APPLICATIONS GENERALES D'ELECTRICITE ET DE MECHANIQUE SA OR SAGEM THAT WILL MANUFACTURE LIQUID CRYSTAL DISPLAY SCREENS THE AGENCY GAVE THE VENTURE AN EXEMPTION FROM ITS BROAD BAN ON ANTICOMPETITIVE LINKUPS BECAUSE OF ITS STRATEGIC IMPORTANCE TO THE COMMUNITY THE COOPERATION IN THE SPECIFIC AREA OF ACTIVE MATRIX LIQUID CRYSTAL DISPLAYS DOESN'T ENDANGER CURRENT COMPETITION BETWEEN THE COMPANIES IN OTHER FLAT SCREEN CATHODE RAY TUBE AND LIQUID CRYSTAL DISPLAY FIELDS THE COMMISSION ADDED UNDER THE LINKUP THE THREE COMPANIES WILL CREATE FLAT PANEL DISPLAYS BV THE FIRST EUROPEAN COMPANY CAPABLE OF MASSPRODUCING AMLCD SCREENS THESE WILL BE USED IN TELEVISIONS AND DISPLAY PROJECTORS PHILIPS WILL HAVE AN 80 STAKE IN THE VENTURE THOMSON AND SAGEM WILL EACH HOLD 10 THE EC COMMISSION CLEARED A JOINT VENTURE BETWEEN BRITISH HARRISON CHEMICALS LTD AND DUTCH AKZO CHEMICAL INTERNATIONAL BV FOR THE PRODUCTION AND SALE OF POLYVINYLCHLORIDE PROCESSING ADDITIVES RADIATION CURE ADDITIVES PAINT DRYERS AND OTHER SPECIALITY CHEMICAL PRODUCTS IN A STATEMENT THE COMMISSION SAID THE LINKUP WOULD INCREASE THE DEGREE OF CONCENTRATION FOR PVC ADDITIVES IN THE EC HOWEVER THE LARGE NUMBER OF RIVAL SUPPLIERS AND INCREASED IMPORTS FROM OUTSIDE THE EC MEANT COMPETITION WOULD BE MAINTAINED IT SAID UNDER THE TIEUP THE COMPANIES WILL TRANSFER ALL THEIR PVC PLANTS AND ASSETS TO THE JOINT VENTURE THE COMMISSION SAID IT WAS UNLIKELY PARENT COMPANIES HARRISONS & CROSFIELDS PLC AND AKZO NV WOULD SEEK TO REENTER THE MARKETS OR COORDINATE THEIR COMPETITIVE BEHAVIOR THE COMMISSION ALSO CLEARED SWEDISH PROCORDIA AB'S ACQUISITION OF ITALY'S MONTEDISON'S PHARMACEUTICAL DIVISIONS FARMITALIA CARLO EBRA SRL AND ERBAMONT INC UNDER EC MERGER RULES THE COMPANIES' ACTIVITIES DON'T OVERLAP AND THE PRESENCE OF STRONG RIVALS SHOULD ENSURE COMPETITION THE COMMISSION SAID IT ALSO SAID THE COMPANIES HAVE BEEN LOSING MARKET SHARE IN SOME AREAS TO RIVALS AND THE COMMISSION CLEARED THE PROPOSED TAKEOVER BY CREDIT SUISSE OF SWISS VOLKSBANK UNDER EC MERGER RULES THE MAIN ACTIVITIES OF THE TWO BANKS DON'T OVERLAP SINCE CREDIT SUISSE MAINLY FOCUSES ON INTERNATIONAL INVESTMENT BANKING AND SWISS VOLKSBANK CENTERS ON DOMESTIC BANKING FOR SMALL AND MEDIUMSIZED BUSINESSES AND PRIVATE CUSTOMERS THE COMMISSION SAID MEANWHILE THE COMMISSION SAID IT WOULD EXAMINE THE TAKEOVER BY DANISH INSURANCE COMPANY FORSIKRINGSSELSKABET CODAN OF DANISH COMPANIES HAFNIA INSURANCE AND HAFNIA BANK BOTH HAFNIA UNITS ARE BEING SOLD BY INSOLVENT PARENT COMPANY HAFNIA HOLDING FORSIKRINGSSELSKABET CODAN IS OWNED BY BRITISHBASED SUN ALLIANCE GROUP PLC UNDER EC MERGER RULES THE COMMISSION HAS THE POWER TO EXAMINE MERGERS AND JOINT VENTURES BETWEEN COMPANIES WITH COMBINED WORLDWIDE SALES OF 5 BILLION EUROPEAN CURRENCY UNITS AND EC SALES OF 250 MILLION ECUS EACH TO ENSURE THEY WON'T DISTORT COMPETITION IN THE COMMUNITY 9305030064 930503 BUSINESS BRIEF TELEFONICA SA SPANISH FIRM SAYS NET PROFIT CLIMBED 16 IN FIRST QUARTER TELEFONICA SA SPAIN'S STATECONTROLLED TELECOMMUNICATIONS MONOPOLY SAID NET PROFIT IN THE FIRST QUARTER ROSE 16 TO 1409 BILLION PESETAS 122 MILLION FROM 1215 BILLION PESETAS A YEAR EARLIER THE EFFECT ON REVENUE OF SLUGGISH ECONOMIC ACTIVITY AND A HIGHER CORPORATE TAX WAS OFFSET BY A LIMITED RISE IN COSTS THE MADRIDBASED COMPANY SAID TELEFONICA SAID FINANCIAL INCOME INCHED UP 19 TO 698 MILLION PESETAS FROM 685 MILLION PESETAS IN THE 1992 QUARTER FINANCIAL EXPENSES MEANWHILE ROSE 7 TO 5438 BILLION PESETAS FROM 5080 BILLION PESETAS EXTRAORDINARY LOSSES INCREASED TO 687 BILLION PESETAS FROM 439 BILLION PESETAS TELEFONICA SAID SPAIN'S RECESSION SLOWED THE GROWTH OF REVENUE FROM OPERATIONS OPERATING REVENUE ROSE 85 TO 29299 BILLION PESETAS IN THE FIRST QUARTER FROM 27013 BILLION PESETAS TELEFONICA SAID 787 OF ITS REVENUE CAME FROM TELEPHONE SERVICES 124 FROM DATA TRANSMISSION SERVICES 74 FROM THE SALES AND RENTAL OF TERMINALS AND 15 FROM ADVERTISING 9305030063 930503 WHAT'S NEWS BUSINESS AND FINANCE CORPORATE PROFITS FROM CONTINUING OPERATIONS CLIMBED 19 IN THE FIRST QUARTER ACCORDING TO A WALL STREET JOURNAL SURVEY OF 578 COMPANIES BUT THE INCREASE FELL SHORT OF THE FOURTH QUARTER'S 57 GAIN IN PART BECAUSE OF BAD WEATHER IN THE PERIOD PERSONAL INCOME ROSE 05 IN MARCH BUT CONSUMERS CUT THEIR SPENDING BY 04 THE BIGGEST DROP IN A YEAR WHILE MANY ANALYSTS BLAME THE DECLINE ON THE WEATHER THE REPORT ADDS TO CONCERN ABOUT THE RECOVERY'S PACE SEPARATELY FACTORY ORDERS FELL 15 THE US TRADE CHIEF THREATENED RETALIATION AGAINST JAPAN FOR ALLEGEDLY DISCRIMINATING AGAINST US CONSTRUCTION AND SUPERCOMPUTER COMPANIES THE MOVE IS PART OF AN EFFORT TO OBTAIN JAPANESE TRADE CONCESSIONS BY JULY GENENTECH'S HEART DRUG TPA SAVES MORE LIVES THAN DOES ITS CHIEF RIVAL STREPTOKINASE WHICH COSTS ONETENTH AS MUCH A LARGE STUDY FOUND GENENTECH'S STOCK SOARED 475 TO 3750 BUT HEALTH OFFICIALS MAY NOT AUTOMATICALLY FAVOR USING TPA OVER STREPTOKINASE CENTRAL BANKS PROPOSED RULES THAT WOULD REQUIRE MORE CAPITAL FOR BANKS ACTIVE IN THE FINANCIAL MARKETS SUCH A STEP COULD PUT BANKS AT A DISADVANTAGE COMPARED WITH SECURITIES FIRMS HONDA ACKNOWLEDGED IT FIRED SOME US SALES EXECUTIVES AFTER DEALERS ALLEGED THEY HAD TO BRIBE COMPANY OFFICIALS TO GET ADEQUATE SUPPLIES OF CARS THE ISSUE THREATENS TO HURT HONDA'S IMAGE AS ITS US SALES ARE SLUMPING CHRYSLER RAISED PRICES ON MOST OF ITS BESTSELLING CARS AND TRUCKS IN THE SECOND ROUND OF PRICE INCREASES BY THE AUTO MAKER DURING THIS MODEL YEAR A MUTUAL FUND GROUP'S DIRECTORS VOTED TO HIRE A NEW MONEY MANAGEMENT FIRM IN AN UNUSUAL DISPLAY OF INDEPENDENCE BY FUND DIRECTORS THE MOVE HURTS KEMPER WHICH PLANNED TO SELL ITS UNIT THAT MANAGED THE FUNDS A PROGRAM THAT OFFERED FREE FLIGHTS TO BUYERS OF CERTAIN CONSUMER GOODS IS SHUTTING DOWN FORCING ITS SPONSORS TO DECIDE HOW TO COMPENSATE CUSTOMERS SPONSORS INCLUDED AT&T CITICORP PRODIGY GILLETTE HERTZ AND P&G MATSUSHITA ELECTRIC AGREED TO PAY 167 BILLION FOR THE 35 STAKE HELD BY HOLLAND'S PHILIPS IN THE COMPANIES' FOURDECADEOLD ELECTRONICS VENTURE SUNBEAM'S OUSTED CHAIRMAN ACCUSED A MUTUAL FUND MANAGER OF USING HIS INFLUENCE TO GET THE HOMEPRODUCTS MAKER TO EXTEND CREDIT TO MACY WHOSE SECURITIES HIS FUNDS HAD BOUGHT DISNEY AGREED TO ACQUIRE MIRAMAX FILMS AN INDEPENDENT DISTRIBUTOR OF SUCH MOVIES AS THE CRYING GAME MICROSOFT SAID IT WILL MODIFY ITS SOFTWARE TO WORK BETTER WITH RIVAL LOTUS'S NOTES A PROGRAM WITH ELECTRONIC MAIL AND NETWORKING FEATURES ARIZONA SHARPLY SCALED BACK ITS TOUGH CIVIL RACKETEERING LAW AFTER HEAVY LOBBYING BY ATTORNEYS BANKS REALESTATE OPERATORS AND ACCOUNTANTS SOME OF WHOM HAVE SERVED FIRMS THAT HAVE BEEN SUED UNDER THE STATUTE BONDS LEHMAN BROTHERS TREASURY INDEX 505486 OFF 2150 COMMODITIES OIL 2053 A BARREL OFF FIVE CENTS DOW JONES FUTURES INDEX 12528 UP 050 SPOT INDEX 12099 UP 007 DOLLAR 11115 YEN UP 015 15850 MARKS UP 00060 9305030062 930503 TECHNOLOGY BRIEF ADOBE SYSTEMS INC POSTSCRIPT SOFTWARE FOUND NOT TO INFRINGE ON PATENT A FEDERAL JUDGE IN CALIFORNIA HAS RULED THAT A SOFTWARE PROGRAM BY ADOBE SYSTEMS INC OF MOUNTAIN VIEW CALIF DOESN'T INFRINGE ON ANOTHER COMPUTER COMPANY'S PATENT INFORMATION INTERNATIONAL INC CULVER CITY CALIF SUED ADOBE IN 1989 ALLEGING THAT ADOBE'S POSTSCRIPT CHARACTERGENERATING SOFTWARE INFRINGED ON ITS OWN CHARACTERGENERATING SYSTEM ALSO NAMED IN THE SUIT IN FEDERAL COURT IN LOS ANGELES WAS APPLE COMPUTER INC WHOSE LASERWRITER PRINTER WAS THE FIRST COMMERCIAL PRODUCT TO USE POSTSCRIPT AN ATTORNEY FOR ADOBE AND APPLE SAID THE JUDGE CONCLUDED THAT ADOBE AND APPLE HAD NOT INFRINGED ON INFORMATION'S PATENT BECAUSE THE CIRCUITRY WAS DIFFERENT IN THE TWO SYSTEMS THIS IS AN IMPORTANT DECISION BECAUSE IT HAD A LOT OF IMPLICATIONS FOR ANYONE WHO USES POSTSCRIPT SOFTWARE SAID PHILIP P BERELSON AN ATTORNEY FOR ADOBE AND APPLE IN THE CASE 9305030061 930503 BUSINESS BRIEF GULF CANADA RESOURCES LTD FIRSTPERIOD LOSS IS RESTATED TO REFLECT SELLING OF STAKE GULF CANADA RESOURCES LTD CALGARY ALBERTA SAID IT RESTATED ITS FIRSTQUARTER RESULTS TO REFLECT THE PREVIOUSLY REPORTED SALE OF ITS 228 STAKE IN HOME OIL CO LTD THE OIL AND GAS PRODUCER SAID THE REDUCTION IN CARRYING VALUE OF ITS HOME INVESTMENT TO COVER THE ANTICIPATED NET LOSS ON THE SALE RESULTED IN A WIDENING OF ITS FIRSTQUARTER LOSS TO 47 MILLION CANADIAN DOLLARS US369 MILLION FROM C14 MILLION PREVIOUSLY REPORTED LOSS PER COMMON SHARE WIDENED TO 34 CANADIAN CENTS FROM 10 CANADIAN CENTS PREVIOUSLY STATED AS REPORTED GULF AND OLYMPIA & YORK DEVELOPMENTS LTD TOGETHER SOLD THEIR 597 STAKE IN HOME OIL TO A GROUP OF CANADIAN INVESTMENT DEALERS FOR C396 MILLION THE UNDERWRITERS PLAN TO REOFFER THE SHARES TO THE PUBLIC FOR C1675 A SHARE AN OFFERING THAT WAS FULLY SUBSCRIBED WITHIN HOURS IN TRADING ON THE TORONTO STOCK EXCHANGE FRIDAY HOME CLOSED AT C1925 A SHARE UP 25 CANADIAN CENTS GULF SAID IT EXPECTS TO RECEIVE PROCEEDS OF C145 MILLION FROM THE SALE 9305030060 930503 BUSINESS BRIEF GREENCORE PLC IRISH FINANCE MINISTRY SELLS ITS 304 STAKE IN GREENCORE THE IRISH FINANCE MINISTRY SAID FRIDAY AFTERNOON THAT IT PLACED ITS ENTIRE 304 STAKE IN FOOD GROUP GREENCORE PLC AT 275 PUNTS 424 A SHARE GIVING THE TRANSACTION A VALUE OF 699 MILLION PUNTS THE SALE CLOSELY FOLLOWED THE GOVERNMENT'S ANNOUNCEMENT EARLIER FRIDAY THAT NEGOTIATIONS TO SELL THE GREENCORE STAKE TO US FOOD COMPANY ARCHERDANIELSMIDLAND CO HAD FAILED THE PRICE REPRESENTS A 68 DISCOUNT TO GREENCORE'S CLOSING LEVEL ON THE LONDON AND DUBLIN STOCK EXCHANGES THURSDAY OF 295 PUNTS A SHARE IN AFTERNOON TRADING FRIDAY GREENCORE WAS QUOTED AT 278 PUNTS THE GOVERNMENT SAID THE SALE HAD THE ACTIVE SUPPORT OF GREENCORE'S MANAGEMENT IN A STATEMENT GREENCORE CHIEF EXECUTIVE OFFICER GERRY MURPHY SAID THE SUCCESSFUL SALE REMOVES A MARKET OVERHANG OF STOCK SUPPLY AND WOULD BOOST LIQUIDITY IN ITS SHARES 9305030059 930503 BUSINESS BRIEF ADVANCED LOGIC RESEARCH INC PRICE CUTS CITED AS CONCERN POSTS FISCAL 2NDPERIOD LOSS ADVANCED LOGIC RESEARCH INC HURT BY INDUSTRYWIDE PRICE CUTTING THAT HAS ERODED PROFIT MARGINS SAID IT HAD A 13 MILLION LOSS IN THE FISCAL SECOND QUARTER THE LOSS OF 11 CENTS A SHARE IN THE PERIOD ENDED MARCH 31 COMPARES WITH A PROFIT OF 933000 OR EIGHT CENTS A SHARE A YEAR EARLIER SALES SLUMPED 22 TO 439 MILLION FROM 564 MILLION ANALYSTS HAD EXPECTED A LOSS OF ABOUT EIGHT CENTS A SHARE FOR THE IRVINE CALIFBASED MICROCOMPUTER COMPANY THE COMPANY SAID ITS CASH POSITION IMPROVED AS IT TRIMMED BANK DEBT GENE LU CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY WAS ALSO BOOSTED BY ANNOUNCING NEW PERSONALCOMPUTER PRODUCTS IN MARCH FOR THE FIRST HALF ADVANCED LOGIC SAID IT HAD A LOSS OF 22 MILLION OR 19 CENTS A SHARE ON SALES OF 863 MILLION COMPARED WITH NET INCOME OF 14 MILLION OR 12 CENTS A SHARE ON SALES OF 1057 MILLION A YEAR EARLIER 9305030058 930503 BUSINESS BRIEF PWA CORP CANADIAN AIRLINE OPERATOR RESUMES PAYMENT OF DEBT PWA CORP SAID IT RESUMED DEBT PAYMENTS SUSPENDED SINCE LAST NOVEMBER AND HOPES TO WIN CREDITORS' AGREEMENT ON A RESTRUCTURING PLAN THIS SUMMER THE RESCUE PLAN HINGES ON A 195 MILLION INVESTMENT BY AMR CORP PARENT OF AMERICAN AIRLINES FOR A 25 VOTING STAKE IN PWA'S CANADIAN AIRLINES INTERNATIONAL UNIT COMPLETION OF THE AMR PACT IN TURN DEPENDS ON CANADIAN AIRLINES' ABILITY TO SHIFT ITS RESERVATIONS SYSTEM TO AMR'S SABRE COMPUTER NETWORK FROM THE GEMINI GROUP NETWORK IT NOW SHARES WITH RIVAL AIR CANADA CANADA'S COMPETITION TRIBUNAL IN LATE APRIL RULED THAT IT DIDN'T HAVE JURISDICTION TO FREE CANADIAN AIRLINES FROM THE GEMINI CONTRACT BUT INDICATED IT WOULD DO SO IF IT HAD THE AUTHORITY PWA HAS APPEALED THE TRIBUNAL'S RULING TO CANADA'S FEDERAL COURT OF APPEAL RHYS EYTON PWA'S CHAIRMAN SAID THE CALGARY ALBERTA COMPANY NOW HAS MORE THAN 200 MILLION CANADIAN DOLLARS US157 MILLION IN CASH AND CREDIT AVAILABLE TO CARRY IT THROUGH THE NEXT FEW MONTHS 9305030057 930503 BUSINESS BRIEF ACCUHEALTH INC BOARD SIZE CUT AMID PROBE INTO COMPENSATION SCHEME ACCUHEALTH INC SAID ITS BOARD DETERMINED THAT THE COMPANY HAD MADE IMPROPER PAYMENTS TO SOME FORMER DIRECTORS AS PART OF A COMPENSATION SCHEME UNDER INVESTIGATION BY THE SECURITIES AND EXCHANGE COMMISSION THE NEW YORK PHARMACY AND HOME HEALTH CARE SERVICES COMPANY SAID IT REDUCED THE SIZE OF ITS BOARD TO SIX MEMBERS FROM NINE BUT DIDN'T NAME THE MEMBERS WHO DEPARTED ACCUHEALTH SAID THE FORMER DIRECTORS INVOLVED IN THE COMPENSATION SCHEME WERE ALSO FORMER OFFICERS BUT DIDN'T ELABORATE THE BOARD REDUCTION IS THE LATEST HIGHLEVEL SHAKEUP AT THE COMPANY FOLLOWING AN ANNOUNCEMENT IN FEBRUARY THAT THE COMPANY IS UNDER INVESTIGATION BY THE SEC FOR POSSIBLE FINANCIAL IMPROPRIETIES AT THE TIME ACCUHEALTH SAID IT EXPECTED TO FACE A MATERIAL LIABILITY FOR FAILING TO PAY TAXES ON CERTAIN REVENUE AND EMPLOYEE COMPENSATION IT SAID IT BELIEVED SOME TOP OFFICERS WERE AWARE OF AND MAY HAVE PARTICIPATED IN SCHEMES TO PAY OFFTHEBOOKS COMPENSATION TO THEMSELVES AND OTHERS LAST MONTH ACCUHEALTH'S CHAIRMAN CHIEF FINANCIAL OFFICER AND VICE PRESIDENT RESIGNED 9305030056 930503 BUSINESS BRIEF ELJER INDUSTRIES INC PLUMBING MAKER FACES SUIT ALLEGING PATENT INFRINGEMENT ELJER INDUSTRIES INC SAID IT WAS SUED BY RIVAL KOHLER CO FOR ALLEGEDLY INFRINGING ON PATENTS FOR PLUMBING PRODUCTS THE DALLAS COMPANY SAID IT INTENDS TO FIGHT THE SUIT WHICH WAS FILED LAST WEEK IN A MILWAUKEE FEDERAL COURT ELJER SAID IN A NEWS RELEASE THAT THE SUIT ALLEGES THAT THE COMPANY HAS BEEN COPYING KOHLER'S PATENTED PLUMBING DESIGNS AND COLORS AS WELL AS ADVERTISING AND SALES BROCHURES KOHLER BASED IN KOHLER WIS IS SEEKING AN INJUNCTION AND UNSPECIFIED DAMAGES ELJER SAID AN ELJER SPOKESMAN SAID THAT THE PRODUCTS MENTIONED IN THE SUIT REPRESENT ONLY A SMALL PORTION OF ITS SALES AND HAVE BEEN ON THE MARKET FOR SEVERAL YEARS KOHLER OFFICIALS COULDN'T BE REACHED FOR COMMENT ELJER HAS BEEN INVOLVED IN OTHER LITIGATION RECENTLY LAST MONTH A STATE COURT IN CALIFORNIA ORDERED ELJER'S US BRASS UNIT TO PAY 36 MILLION IN DAMAGES RELATING TO A DEFECTIVE PLUMBING DEVICE THE COMPANY SOLD IN MARCH A FEDERAL JUDGE IN CHICAGO UPHELD A 122 MILLION ARBITRATION AWARD AGAINST ELJER IN A FRAUD AND MISREPRESENTATION CASE BROUGHT BY A FORMER PARTNER OF HOUSEHOLD MANUFACTURING INC THE PREDECESSOR TO THE ELJER MANUFACTURING INC UNIT 9305030055 930503 BUSINESS BRIEF INFINITY BROADCASTING CORP LOSS NARROWS TO 64 MILLION AS REVENUE INCREASES BY 50 INFINITY BROADCASTING CORP NEW YORK REPORTED A NARROWER FIRSTQUARTER LOSS ON 50 HIGHER REVENUE PRIMARILY AS A RESULT OF HIGHER ADVERTISING SPENDING AND INCLUSION OF THE RESULTS OF RECENT ACQUISITIONS THE OWNER OF MAJORMARKET RADIO STATIONS HAD A LOSS OF 64 MILLION OR 44 CENTS A SHARE COMPARED WITH A LOSS OF 228 MILLION OR 167 A SHARE IN THE YEAREARLIER PERIOD WHICH INCLUDED CHARGES OF 61 CENTS A SHARE FOR COSTS OF DEBT REDEMPTION REVENUE JUMPED TO 352 MILLION FROM 234 MILLION A YEAR EARLIER ADVERTISING AT MOST OF INFINITY'S 21 STATIONS WAS UP IN THE QUARTER WHICH INCLUDED THE RESULTS OF NEW YORK SPORTS STATION WFANAM IT ALSO INCLUDED STATIONS IN ATLANTA BOSTON AND CHICAGO AS OF FEB 1 OPERATING CASH FLOW OR INCOME BEFORE DEPRECIATION AMORTIZATION AND GENERAL AND ADMINISTRATIVE EXPENSES ROSE 60 TO 124 MILLION FROM 77 MILLION ON A PRO FORMA BASIS ASSUMING THE ACQUIRED STATIONS HAD BEEN PART OF INFINITY IN 1992 OPERATING CASH FLOW WAS UP ABOUT 26 IN NATIONAL OVERTHECOUNTER TRADING FRIDAY INFINITY FELL 50 CENTS TO 3250 9305030054 930503 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 2 15/16 LOW 3 NEAR CLOSING BID 3 1/8 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 304 30 TO 59 DAYS 305 60 TO 119 DAYS 308 120 TO 149 DAYS 310 150 TO 249 DAYS 315 250 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 309 30 DAYS 310 60 DAYS 311 90 DAYS CERTIFICATES OF DEPOSIT 259 ONE MONTH 263 TWO MONTHS 267 THREE MONTHS 275 SIX MONTHS 293 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 302 ONE MONTH 303 THREE MONTHS 310 SIX MONTHS BANKERS ACCEPTANCES 3 30 DAYS 3 60 DAYS 301 90 DAYS 303 120 DAYS 304 150 DAYS 306 180 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 1/4 3 1/8 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 5/16 3 3/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/8 ONE MONTH 3 3/16 THREE MONTHS 3 5/16 SIX MONTHS 3 1/2 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 6 GERMANY 850 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY APRIL 26 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 288 13 WEEKS 295 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 731 60 DAYS 742 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 725 60 DAYS 735 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 5 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 269 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9305030053 930503 REVIEW & OUTLOOK EDITORIAL YELTSIN'S NEXT 100 DAYS RUSSIAN PRESIDENT BORIS YELTSIN HAVING WON STRONG PUBLIC SUPPORT IN AN APRIL 25 REFERENDUM LATE LAST WEEK TOOK THE NEXT STEP IN HIS GAME PLAN FOR GIVING RUSSIA A NEW CONSTITUTION THE TRICK WILL BE TO PULL AN END RUN AROUND THE OBSTRUCTIONIST CONGRESS OF PEOPLE'S DEPUTIES SOME ELEMENTS OF WHICH WERE BEHIND THE VIOLENT DEMONSTRATIONS IN MOSCOW SATURDAY IF HE SUCCEEDS IT WILL BE A LUCKY VICTORY FOR THE RUSSIAN PEOPLE BECAUSE A NEW CONSTITUTION ESTABLISHING PROPERTY RIGHTS AND A RULE OF LAW IS ESSENTIAL TO RUSSIA'S ECONOMIC RECOVERY IF RUSSIA IS TO SUCCEED THIS HAS TO WORK THE GAME PLAN AS SKETCHED OUT BY CONSTITUTIONAL SHERPA SERGEI SHAKHRAI GOES SOMETHING LIKE THIS THE PRESIDENT WILL MARSHAL SUPPORT FROM LEADERS OF THE RUSSIAN REPUBLICS THEN HE WILL SUBMIT HIS DRAFT CONSTITUTION TO THE EXISTING CONGRESS IF IT IS REJECTED AS IT SURELY WILL BE HE WILL PUT IT INTO EFFECT ANYWAY SUPPORTING HIS ACTION WITH THE ARGUMENT THAT THE RUSSIAN PEOPLE AND LEADERS OF THE RUSSIAN REPUBLICS HAVE DEMANDED IT HE THEN WILL SCHEDULE ELECTIONS FOR NEXT FALL TO THE NEW BICAMERAL LEGISLATURE THAT THE CONSTITUTION WOULD CREATE IT'S A BOLD PLAN BUT IT JUST MIGHT WORK OLD GUARD MEMBERS OF THE PRESENT CONGRESS NO DOUBT WITH SOME SUPPORT FROM PUNDITS IN THE WEST WILL SCREAM THAT THE YELTSIN END RUN IS HIGHHANDED BUT THAT CHARGE DOESN'T HOLD UP THE PRESIDENT HAS BEEN TRYING FOR MONTHS TO GAIN APPROVAL FROM THE CONGRESS FOR A NEW CONSTITUTION HE HAS HAD NO LUCK FOR A VERY SIMPLE REASON MEMBERS OF THE CONGRESS PARTICULARLY THOSE WHO RETAIN COMMUNIST LEANINGS DON'T WANT TO FACE THE VOTERS BECAUSE THE ODDS ARE HEAVY THAT THEY WOULD BE REJECTED MR YELTSIN WANTED TO SUBMIT THE CONSTITUTION ITSELF TO A POPULAR REFERENDUM THE CONGRESS INSTEAD DICTATED THE QUESTIONS POSED TO VOTERS IN THE JUST COMPLETED REFERENDUM WHICH ESSENTIALLY CREATED A POPULARITY CONTEST BUT MR YELTSIN UNVEILED HIS DRAFT CONSTITUTION JUST BEFORE THE VOTE AND SAID IN EFFECT THAT A VOTE FOR ME IS A VOTE FOR THE CONSTITUTION BY ANY SOUND MEASURE OF THE VOTING RESULTS HE TROUNCED THE OBSTRUCTIONISTS IT WILL IMMEDIATELY BE OBJECTED THAT A REFERENDUM QUESTION CALLING FOR EARLY PARLIAMENTARY ELECTIONS DIDN'T RECEIVE ENOUGH VOTES TO ACTUALLY REQUIRE SUCH A STEP THAT IS TRUE BUT IT IS ONLY BECAUSE A CONSTITUTIONAL COURT DOMINATED BY FORMER COMMUNISTS SET IMPOSSIBLE CONDITIONS IT RULED THAT TO BE BINDING THE MEASURE WOULD HAVE TO WIN THE SUPPORT OF A MAJORITY OF ALL THE ELIGIBLE VOTERS IN RUSSIA A TOTAL OF 107 MILLION PEOPLE ONLY IN BOGUS COMMUNISTSTYLE ELECTIONS IS A 100 TURNOUT EVER CLAIMED IN ACTUALITY 65 OF THOSE ELIGIBLE VOTED LAST SUNDAY A VERY GOOD TURNOUT BY COMPARISON WITH THE US OR MOST OTHER PLACES WHERE VOTING IS VOLUNTARY IN FACT THE CALL FOR A NEW PARLIAMENT DID WIN THE BACKING OF 64 OF THOSE WHO VOTED A RESULT THAT IN AN AMERICAN ELECTION WOULD QUALIFY AS A LANDSLIDE THESE RESULTS SUGGEST THAT IF THE DRAFT CONSTITUTION ITSELF HAD BEEN PUT BEFORE THE VOTERS IT PROBABLY WOULD HAVE WON OVERWHELMING SUPPORT THE BIGGEST APPEAL OF THE DRAFT CONSTITUTION IS ITS GUARANTEE OF LAND OWNERSHIP PROPERTY RIGHTS AND HUMAN RIGHTS IT WOULD SET UP A NEW JUDICIAL SYSTEM WITH APPOINTMENTS SUBJECT TO APPROVAL BY THE UPPER HOUSE IN SHORT IT WOULD LOOK IN MANY RESPECTS LIKE THE BASIC LAW THAT HAS HELPED WESTERN INDUSTRIAL NATIONS ACHIEVE POLITICAL AND ECONOMIC STABILITY THOSE TWO THINGS ARE WHAT RUSSIA DESPERATELY NEEDS THE RECENT REFERENDUM'S RESULTS STRONGLY SUGGEST THAT THE RUSSIAN PEOPLE UNDERSTAND THAT BETTER THAN ANYONE ELSE 9305030052 930503 WHITE HOUSE URGES RETROACTIVE RULE ON CIVIL RIGHTS ACT BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION URGED THE SUPREME COURT TO RULE THAT THE CENTRAL PROVISIONS OF A 1991 JOBDISCRIMINATION LAW APPLY TO CASES THAT WERE PENDING WHEN THE STATUTE WAS ENACTED IN A BRIEF FILED WITH THE HIGH COURT THE JUSTICE DEPARTMENT REVERSED THE POSITION TAKEN BY THE BUSH ADMINISTRATION WHICH HAD SAID THAT THE CIVIL RIGHTS ACT OF 1991 SHOULD APPLY ONLY TO LAWSUITS INITIATED AFTER ENACTMENT THE CLINTON ADMINISTRATION WHICH HAS PROMISED AGGRESSIVE ENFORCEMENT OF CIVIL RIGHTS LAWS HAD BEEN EXPECTED TO SWITCH THE EXECUTIVE BRANCH'S VIEW ON THE JOBDISCRIMINATION ISSUE THE QUESTION IS CRITICAL TO BUSINESS AND TO EMPLOYEES RETROACTIVE APPLICATION TO CASES PENDING AT THE TIME OF ENACTMENT COULD ALLOW WORKERS TO GO FORWARD WITH THOUSANDS OF BIAS SUITS THE CLINTON ADMINISTRATION'S SUPPORT MAY BOLSTER THE CHANCES OF CIVIL RIGHTS ADVOCATES BUT WON'T NECESSARILY SWAY THE LARGELY CONSERVATIVE HIGH COURT THE JUSTICES ARE EXPECTED TO HEAR ARGUMENTS ON THE ISSUE NEXT FALL AND TO MAKE A RULING IN 1994 THE CIVIL RIGHTS LAW WAS DESIGNED TO MODIFY OR REVERSE THE EFFECT OF A SERIES OF 1989 SUPREME COURT DECISIONS THAT HAD MADE IT MORE DIFFICULT FOR EMPLOYEES TO FILE AND WIN JOBDISCRIMINATION SUITS THE LAW ALSO ALLOWED WOMEN TO SEEK PUNITIVE AND COMPENSATORY DAMAGES RATHER THAN JUST BACKPAY IN SEXBIAS CASES IN PASSING THE LAW CONGRESS DIDN'T MAKE CLEAR WHETHER THE ACT SHOULD APPLY TO PLAINTIFFS WHO HAD FILED DISCRIMINATION CLAIMS BEFORE THE LAW WAS ENACTED IN NOVEMBER 1991 FORMER PRESIDENT BUSH INDICATED THAT HE WOULDN'T HAVE SIGNED THE ACT IF CONGRESS HAD EXPLICITLY MADE IT RETROACTIVE REPUBLICANS AND MANY BUSINESS INTERESTS CONTEND THE NEW LAW SHOULD BE APPLIED ONLY PROSPECTIVELY THAT WOULD LIMIT EMPLOYERS' LIABILITY DEMOCRATS ARGUE THAT IT SHOULD APPLY TO THE PENDING CASES AS WELL LANDGRAF VS USI FILM PRODUCTS RIVERS VS RAILWAY EXPRESS INC 9305030051 930503 REVIEW & OUTLOOK EDITORIAL THE LAST FRONTIER' EYEBROWS ARE ARCHING IN THE LEGAL COMMUNITY OVER THE NOMINATION OF PENN LAW PROFESSOR LANI GUINIER AS HEAD OF THE CIVIL RIGHTS DIVISION AT THE JUSTICE DEPARTMENT HER VIEWS WERE SPELLED OUT IN A 77PAGE BRIEF IN THE MARCH 1991 MICHIGAN LAW REVIEW IN A SYSTEM SHAPED BY IRRATIONAL MAJORITY PREJUDICE SHE WROTE JUSTICE MAY HAVE TO BE FOUND IN REMEDIAL MECHANISMS THAT ELIMINATE PURE MAJORITY RULE INSTEAD THE LAW SHOULD ENFORCE INTEREST PROPORTIONALITY SINCE A PERMANENT HOSTILE FIXED MAJORITY WILL PRECLUDE INTEREST SATISFACTION FOR DISADVANTAGED MINORITIES ON ISSUES OF GREATEST CONCERN SOME MAY DISMISS THIS AS MERE ACADEMIC POSTURING THAT WILL HAVE NO REAL EFFECT AT JUSTICE BUT THEY SHOULD TAKE A CLOSER LOOK AT WHAT'S ACTUALLY COMING FOR THE NATION'S COURTS WHAT THEY'LL SEE IS A GATHERING GERRYMANDER OF THE JUDICIARY THE FEDERAL VOTING RIGHTS ACT HAS ALREADY BEEN TURNED ON ITS HEAD TO ENSURE THAT RACIAL AND ETHNIC MINORITIES WIN LEGISLATIVE SEATS IN JIGSAWPUZZLE DISTRICTS THE SAME FORCES HAVE NOW TRAINED THEIR SIGHTS ON THE BENCH LAST MONTH FOR EXAMPLE A FEDERAL CIRCUIT PANEL IN CALIFORNIA FOUND AGAINST A PLAN THAT FAILS TO PRODUCE A SUFFICIENT NUMBER OF JUDGES OF HISPANIC ETHNICITY TEN YEARS AGO MONTEREY COUNTY COLLAPSED 10 COURT DISTRICTS INTO ONE FOR THE ELECTION OF MUNICIPAL JUDGES WHO HANDLE MISDEMEANORS AND ARRAIGNMENTS BUT THE COURT HAS RULED THAT THIS NOW NEEDS THE APPROVAL OF THE US JUSTICE DEPARTMENT LITIGANTS LED BY ATTORNEY JOAQUIN AVILA SEEK ABOLITION OF ATLARGE VOTING AND NEW ELECTIONS WITH MINORITY DISTRICTS MR AVILA AND HIS ALLIES ARE METHODICALLY MAPPING ATTACKS ON ELECTED BODIES THROUGHOUT THE STATE THAT DON'T REFLECT THE HISPANIC COMPONENT OF THEIR JURISDICTIONS THEY AWAIT TRIAL ON A SUIT TO BREAK UP THE MONTEREY COUNTY SUPERIOR FELONY TRIAL COURT SEVERAL POPULOUS COUNTIES IN SOUTHERN CALIFORNIA ARE VULNERABLE TO SUCH A TEST THERE HAS BEEN A SIMILAR SKIRMISH IN THE CINCINNATI AREA AND MORE RECENT SUITS FILED IN STATES SUCH AS NEW YORK BUT MOST OF THE JUDICIARY CASES TO DATE HAVE BEEN IN THE SOUTH MOST HAVE INVOLVED BLACKS ALTHOUGH SEVERAL MAJOR COUNTIES IN TEXAS ARE BEFORE THE FEDERAL CIRCUIT IN AN ACTION THAT ALSO ADDRESSES HISPANICS LOUISIANA UNDER REINSTALLED GOV EDWIN EDWARDS CAPITULATED TO ITS CHALLENGERS AND REDREW ITS RULES 22 NEW BLACK STATE JUDGES WERE ELECTED THERE IN 1992 SOME OF THESE CASES INVOLVE STATE APPELLATE BODIES BUT EVEN WHERE THE FOCUS IS ONLY ON TRIAL JUDGES THE IMPACT WILL BE FELT OUTSIDE THE COURTROOMS OF THOSE NEWLY ELECTED TO THE BENCH TRIAL COURT PANELS USUALLY PLAY A MAJOR ROLE IN SELECTING GRAND JURIES WHICH ARE IN TURN AN INTEGRAL PART OF THE PROSECUTORIAL APPARATUS IN A COUNTY THE CAUSE OF ABOLISHING ATLARGE VOTING FOR JUDICIAL PANELS HAS RECEIVED A MAJOR BOOST FROM A DIVIDED US SUPREME COURT WHICH FOUND NOT LONG AGO THAT WHEN CONGRESS INCLUDED JUDGES WHEN IT REVISED THE VOTING RIGHTS ACT IN 1982 TO APPLY TO ELECTED REPRESENTATIVES THIS BROUGHT JUSTICE ANTONIN SCALIA TO WRITE IN DISSENT WHEN WE ADOPT A METHOD THAT PSYCHOANALYZES CONGRESS RATHER THAN READS ITS LAWS WHEN WE EMPLOY A TINKERER'S TOOLBOX WE DO GREAT HARM JUSTICE SCALIA WAS NOT JUST BATTLING OVER SEMANTICS MIND YOU AT ISSUE IS THE WAY WE SEE THE JUDICIAL BRANCH OF GOVERNMENT IF ONE SUPPOSES JUDGES TO BE IMPARTIAL ARBITERS OF LAW AND NOT POLICY MAKERS THERE ISN'T MUCH CASE FOR BRINGING ABOUT A FAIR MIX AMONG THE ROBED MINORITY COMMUNITIES ARE ARGUABLY DENIED A SAY IN WRITING THE LAW IF THEY ARE ABSENT FROM A LEGISLATURE OR LOCAL BOARD BUT JUDGES WRITES KATHARINE BUTLER OF THE UNIVERSITY OF SOUTH CAROLINA LAW SCHOOL MUST CONSIDER THE LAW NOT THE NEEDS OF THOSE WHO ELECTED THEM IN DECIDING DISPUTES THE CONTRARY ARGUMENTS MAKES SENSE ONLY IF ONE FAVORS AN ACTIVIST JUDICIARY OR ADOPTS THE RADICALLEFT VIEW THAT THE WHOLE IDEA OF RULE OF LAW IS A POWER GAME THE DIVISION PROFESSOR GUINIER HAS BEEN DESIGNATED TO HEAD IS THE POINT AGENCY IN ENFORCING THE VOTING RIGHTS ACT EVEN THE BUSH ADMINISTRATION ALWAYS HAD A WEAKNESS FOR QUOTAS BOTH ITS CIVIL RIGHTS DIVISION AND SOLICITOR GENERAL PAUL STARR WERE VOTINGRIGHTS EXPANSIONISTS BUT MS GUINIER IS ANOTHER ORDER SHE CAN ONLY BE ASSUMED TO REPRESENT A CLINTONITE QUEST TO RATION AMERICA'S TOP POSTS BY CIRCUMSTANCE OF BIRTH NO THINKING PERSON IS GOING TO DENY THAT SOME STATE JUDICIARIES HAVE BEEN USED TO INTERFERE WITH THE PURSUIT OF LIBERTY BY THIS NATION'S MINORITIES AS WELL THE PROCEDURES FOR ELECTING JUDGES IN SEVERAL STATES REMAIN AN ABOMINATION FOR OTHER REASONS PROVIDING AN OPEN DOOR FOR YAHOOS AND STOOGES OF THE TRIAL LAWYERS IN SOME PLACES IT MIGHT BE DIFFICULT TO LOWER THE QUALITY OF THE BENCH WITH ANY SCHEME THE LANI GUINIERS OF THIS COUNTRY CAN DREAM UP THE VOTE DOES HAVE A ROLE HERE HOWEVER THE MOST IMPORTANT REMEDY TO HISTORIC DISCRIMINATION WILL COME FROM THE OPEN AND FREE DEMOCRACIES THAT ALL STATES NOW ENJOY THANKS TO THE ORIGINAL VOTING RIGHTS ACT FAIR ELECTIONS FREE OF GERRYMANDER CAN FILL THE EXECUTIVE AND LEGISLATIVE BRANCHES WITH THE TYPE OF LEADERS WHO WILL APPROPRIATELY SELECT AND BUFFER THE BENCH IN SUCH AN ENVIRONMENT WHERE THE LAW IS BEING APPLIED EVENHANDEDLY AND COMPETENTLY THE DISPLACEMENT OF A WHITE JUDGE BECAUSE OF RACE HARDLY SEEMS A VICTORY FOR AMERICAN JURISPRUDENCE JUDICIAL ELECTIONS ARE THE LAST FRONTIER OF THE VOTING RIGHTS ACT AN ATTORNEY OF THE NAACP LEGAL DEFENSE AND EDUCATION FUND TOLD THE NATIONAL LAW JOURNAL IN 1991 IT LOOKS LIKE THE WAGON TRAINS HAVE JUST CROSSED THE MISSISSIPPI 9305030050 930503 CLINTON AIDES DEBATE HOW MUCH PEOPLE SHOULD PAY OUT OF POCKET FOR HEALTH CARE BY RICK WARTZMAN AND HILARY STOUT STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE HUGE COST OF PROVIDING A WIDE RANGE OF HEALTHCARE SERVICES FOR ALL AMERICANS IS FUELING A DEBATE WITHIN THE CLINTON ADMINISTRATION OVER HOW MUCH PEOPLE SHOULD PAY FROM THEIR OWN POCKETS OFFICIALS STRESS THAT THE BENEFITS PACKAGE THAT'S FEATURED IN THE ADMINISTRATION'S PROPOSAL TO OVERHAUL THE HEALTH SYSTEM WILL BE A COMPREHENSIVE ONE PROVIDING AT LEAST SOME COVERAGE FOR EVERYTHING FROM PREVENTIVE CARE AND MENTALHEALTH TREATMENT TO PRESCRIPTION DRUGS AND LONGTERM CARE BUT GUARANTEEING SUCH A COMPLETE PACKAGE TO EVERYONE PRESENTS ADMINISTRATION OFFICIALS WITH A DILEMMA THEY KNOW THAT THEY NEED TO KEEP PEOPLE'S OUTOFPOCKET EXPENSES AS LOW AS POSSIBLE TO WIN UNION AND MIDDLECLASS SUPPORT FOR THE HEALTH PLAN BUT LOWER PERSONAL OUTOFPOCKET EXPENSES WILL MEAN MORE OF THE COST MUST BE BORNE BY BUSINESSES AND THE GOVERNMENT AND THAT IN TURN WILL CREATE EVEN MORE PRESSURE FOR HIGHER TAXES HOW THIS TRADEOFF IS RESOLVED IN THE NEXT FEW WEEKS WILL BE CRITICAL TO THE CLINTON HEALTH PACKAGE'S SUCCESS THERE IS A TENSION WITHIN THE TASK FORCE BETWEEN THOSE WHO WANT TO PROVIDE THE VERY BEST BENEFITS TO EVERYONE REGARDLESS OF COST AND THOSE WHO RECOGNIZE THAT SOME OF THESE VERY GOOD BENEFITS ARE SIMPLY UNAFFORDABLE SAID MARK UGORETZ PRESIDENT OF THE ERISA INDUSTRY COMMITTEE WHICH REPRESENTS LARGE EMPLOYERS ON BENEFIT MATTERS ERISA STANDS FOR THE EMPLOYEE RETIREMENT INCOME SECURITY ACT SPECIFICALLY AT ISSUE IS HOW HIGH TO MAKE THE DEDUCTIBLES AND PERSONAL COPAYMENTS UNDER THE PLAN A DEDUCTIBLE IS THE AMOUNT OF MONEY A POLICYHOLDER MUST SPEND ON HEALTH SERVICES EACH YEAR BEFORE COVERAGE KICKS IN A COPAYMENT IS THE SHARE OF EACH MEDICAL BILL THAT THE POLICY HOLDER MUST ASSUME CLINTON HEALTH OFFICIALS SAY THEY ARE EXAMINING A SPECTRUM OF SHAREDCOST ARRANGEMENTS TOWARD THE MORE GENEROUS END IS A PLAN THAT WOULD HAVE NO DEDUCTIBLES AND ONLY LIMITED COPAYMENTS SUCH AS 10 FOR A DOCTOR VISIT TOWARD THE OTHER END IS A PLAN THAT WOULD REQUIRE A 20 COPAYMENT AND A DEDUCTIBLE OF A FEW HUNDRED DOLLARS ADMINISTRATION OFFICIALS SAID THEY HAVEN'T YET DECIDED WHETHER TO PROPOSE ONE UNIFORM SCHEDULE OF COPAYMENTS AND DEDUCTIBLES INSTEAD THEY MIGHT ALLOW THEM TO VARY BETWEEN THE REGIONAL HEALTHINSURANCE PURCHASING COOPERATIVES THAT WOULD BE SET UP AROUND THE COUNTRY UNDER THE CLINTON PACKAGE THE COST TO THE GOVERNMENT WHICH UNDER THE CLINTON PROPOSAL WILL BE RESPONSIBLE FOR SUBSIDIZING COVERAGE FOR THE POOR COULD VARY TENS OF BILLIONS OF DOLLARS DEPENDING ON WHICH OPTIONS ARE CHOSEN LEWINVHI INC A FAIRFAX VA HEALTHCARE CONSULTING FIRM FIGURES THAT THE TOTAL COST TO THE GOVERNMENT OF A PLAN WITH A 250 A PERSON DEDUCTIBLE 20 COPAYMENT AND 2000 ANNUAL CAP ON OUTOFPOCKET EXPENSES WOULD BE ROUGHLY 39 BILLION BUT A PLAN WITH NO DEDUCTIBLES AND A 10 A VISIT COPAYMENT WOULD COST THE GOVERNMENT CLOSER TO 59 BILLION IN ADDITION THE OVERALL PRICE COULD VARY WIDELY DEPENDING ON THE SIZE OF THE COPAYMENTS AND SCOPE OF COVERAGE FOR SPECIFIC BENEFITS SUCH AS PRESCRIPTION DRUGS AND LONGTERM CARE IN A SPEECH LAST WEEK SENIOR WHITE HOUSE ADVISER IRA MAGAZINER ACKNOWLEDGED THAT WHILE THE ADMINISTRATION WOULD ADDRESS LONGTERM CARE WE CANNOT COMPLETELY SOLVE IT THIS YEAR NEXT YEAR OR THE YEAR AFTER IT IS TOO EXPENSIVE A PROBLEM THE TOTAL COST OR PREMIUM OF THE AVERAGE EMPLOYERPROVIDED HEALTHINSURANCE PACKAGE WAS 3605 IN 1991 ACCORDING TO THE EMPLOYEE BENEFIT RESEARCH INSTITUTE ACTUARIES SAY DEDUCTIBLES ARE COMMONLY 100 TO 500 A PERSON ANNUALLY ONE KEY QUESTION CLINTON OFFICIALS SAY IS HOW BIG A SUBSIDY THE GOVERNMENT WILL BE ABLE TO OFFER LOWINCOME PEOPLE IF THE ADMINISTRATION FINDS IT MUST GO WITH HIGHER DEDUCTIBLES AND COPAYMENTS SOME IN THE ADMINISTRATION AND CONGRESS SAY THEY ARE CONCERNED THAT THESE MOST DIFFICULT ISSUES ARE BEING WRESTLED WITH IN THE LAST FEW WEEKS BEFORE THE HEALTH PROPOSAL IS PRESENTED MR MAGAZINER WHO IS OVERSEEING THE HEALTHREFORM EFFORT ALWAYS INTENDED FOR THE PROCESS TO WORK THIS WAY WITH THE FINANCING DECIDED AT THE END NONETHELESS THIS SCHEDULE HAS LED TO A GROWING SKEPTICISM ABOUT WHETHER THE WHITE HOUSE WILL BE ABLE TO MEET ALL OF ITS GOALS SOME ON CAPITOL HILL HAVE EVEN TAKEN TO CALLING MR MAGAZINER THE FAIRY DUST KING SAID REP PETE STARK D CALIF CHAIRMAN OF A PIVOTAL HOUSE HEALTH SUBCOMMITTEE TO HELP WIN OVER LAWMAKERS FROM BOTH PARTIES HILLARY RODHAM CLINTON MET FRIDAY WITH DOZENS OF SENATORS FOR ABOUT TWO HOURS THE FIRST LADY WHO IS CHAIRWOMAN OF THE HEALTHCARE TASK FORCE SAID DURING THE SESSION THAT THE ADMINISTRATION WAS LEANING STRONGLY TOWARD INTRODUCING A PAYROLL TAX TO PAY FOR ITS PROPOSAL THIS TAX WOULD BE SHARED BY EMPLOYERS AND EMPLOYEES DEMOCRATIC SENS PAUL SIMON OF ILLINOIS AND JOHN ROCKEFELLER OF WEST VIRGINIA SAID MRS CLINTON ALSO INDICATED THAT THE PACKAGE WOULD VERY LIKELY CALL FOR VOLUNTARY COST CONTROLS TO BE WORKED OUT WITH DOCTORS DRUG COMPANIES HOSPITALS AND OTHER HEALTHCARE PROVIDERS AS EXPECTED HOWEVER THE FEDERAL GOVERNMENT WOULD CLAIM THE AUTHORITY TO IMPOSE MANDATORY RESTRAINTS ON PRICE INCREASES IF THE INDUSTRY DIDN'T LIVE UP TO ITS WORD SENS SIMON AND ROCKEFELLER ALSO SAID MRS CLINTON MADE CLEAR THAT A TYPE OF NATIONAL SALES TAX KNOWN AS A VALUEADDED TAX WAS AN UNLIKELY MECHANISM TO FINANCE THE HEALTH INITIATIVE JACKIE CALMES CONTRIBUTED TO THIS ARTICLE 9305030049 930503 MEDICINE GENENTECH DRUG RAISES QUESTION OF A LIFE'S VALUE BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL HEALTH ECONOMISTS AND CARDIOLOGISTS NOW HAVE A STICKY ISSUE TO CONSIDER IS A HUMAN LIFE WORTH 200000 THE QUESTION HAS BEEN RAISED BECAUSE OF THE SLIM BUT SURPRISING SURVIVAL EDGE SHOWN BY GENENTECH INC'S HEART DRUG TPA OVER ITS LESSEXPENSIVE RIVAL STREPTOKINASE IN A HUGE INTERNATIONAL STUDY AT 2200 A DOSE TPA COSTS 10 TIMES MORE THAN STREPTOKINASE WHICH IS SOLD BY ASTRA AB AND KABI FARMACIA AB OF SWEDEN AND BY HOECHST AG OF GERMANY THE TRIAL OF 41000 HEARTATTACK PATIENTS FOUND THAT TPA TREATMENT SAVES AN ADDITIONAL ONE PERCENTAGE POINT OF PATIENTS OR ONE IN 100 OVER STREPTOKINASE TPA ALSO CARRIED A HIGHER RISK OF A DISABLING OR FATAL STROKE BUT RESEARCHERS SAID THAT DIDN'T OFFSET ITS OVERALL SURVIVAL BENEFITS THE DATA WERE DISCLOSED FRIDAY AT A SCIENTIFIC CONFERENCE IN WASHINGTON THE NEWS SURPRISED WALL STREET SKEPTICS WHO HAD EXPECTED THE STUDY TO END IN A DRAW FOR TPA GENENTECH SHARES SOARED 475 TO CLOSE AT 3750 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING FRIDAY THROMBOLYTIC OR CLOTDISSOLVING DRUGS HAVE LONG BEEN KNOWN TO REDUCE DEATHS FROM HEART ATTACKS BUT TPA DESPITE OPENING CLOGGED ARTERIES FASTER THAN STREPTOKINASE PREVIOUSLY HAD PROVEN NO BETTER AT SAVING LIVES GENENTECH FUNDED THE 55 MILLION TEST TO RESOLVE THIS PARADOX AND SHORE UP ITS SAGGING MARKET SHARE WE NOW CAN SAY THAT OPENING ARTERIES FASTER WILL SAVE MORE LIVES SAID ERIC TOPOL A RESEARCHER IN THE STUDY AND CHIEF OF CARDIOLOGY AT THE CLEVELAND CLINIC FOUNDATION WE HOPE TO PUT TO REST THE BATTLE OF THE THROMBOLYTICS HOWEVER INTERVIEWS WITH DOCTORS AND HEALTH EXPERTS SUGGEST THE DEBATE IS FAR FROM SETTLED RESEARCHERS SAID THE BEST REGIMEN IN THE TWOYEAR STUDY PROVED TO BE TPA IN TANDEM WITH THE BLOODTHINNING AGENT HEPARIN GIVEN IN A FAST 30MINUTE INFUSION ONE MONTH AFTER A HEART ATTACK THE DEATH RATE FOR PATIENTS ON THE TPA REGIMEN WAS 63 OR ONE PERCENTAGE POINT BETTER THAN THE AVERAGE 73 MORTALITY OF PATIENTS ON STREPTOKINASE WITH HEPARIN IT'S HIGHLY SIGNIFICANT TO HAVE 10 PATIENTS IN 1000 SURVIVE SAID DR TOPOL OF THE ONE PERCENTAGE POINT GAP THAT'S AN IMPORTANT ADVANCE IN HEART ATTACK THERAPY GENENTECH CLEARLY EXPECTS ITS FORTUNES TO BE REVERSED NOW CURRENTLY OUT OF THE 900000 PEOPLE WHO SUFFER HEART ATTACKS IN THE US EVERY YEAR ONLY ONEFIFTH OF ELIGIBLE PATIENTS RECEIVE THROMBOLYTIC DRUGS OF ANY KIND AND ONLY HALF OF THOSE GET TPA EUROPEAN AND CANADIAN DOCTORS GIVE CLOTBUSTING DRUGS MORE OFTEN BUT MOST USE THE CHEAPER DRUG IT USED TO BE THAT DOCTORS HAD TO FIND A REASON TO USE TPA NOW THEY'RE GOING TO HAVE TO FIND A REASON NOT TO USE TPA EXULTED G KIRK RAAB GENENTECH'S PRESIDENT IN AN INTERVIEW IF EVERYONE USED TPA HE ADDED WE COULD SAVE SIX LIVES A DAY IN THE US OR 2000 PEOPLE A YEAR BUT ASTRA'S US UNIT SAID THE TRIAL'S RESULTS DIDN'T PROVIDE ANY MANDATE FOR TPA THE COMPANY BRANDISHED A SKEPTICAL VIEW OF THE STUDY BY OXFORD UNIVERSITY STATISTICIAN RICHARD PETO WHO SAID THE TRIAL SHOWED ONLY A SLIGHT ADVANTAGE FOR TPA AND NONE WHEN VIEWED IN CONTEXT OF EARLIER TRIALS INDEED MEDICAL PRACTICE MAY BE SLOW TO CHANGE A STARTLING LEVEL OF DISAGREEMENT FLOURISHED OVER THE WEEKEND AS PHYSICIANS HEALTH POLICY EXPERTS AND MARKET ANALYSTS STRUGGLED TO WEIGH THE STUDY'S PRACTICAL IMPACT ONE PERCENTAGE POINT DOESN'T MAKE A GALAXY SAID THOMAS B GRABOYS ASSOCIATE CLINICAL PROFESSOR OF MEDICINE AT HARVARD UNIVERSITY AND HEAD OF THE LOWN CARDIOVASCULAR CENTER AT BRIGHAM AND WOMEN'S HOSPITAL IN BOSTON THERE HAVE BEEN SO MANY PRIOR STUDIES SHOWING NO SURVIVAL DIFFERENCE AND THERE IS SUCH A COST DIFFERENCE THAT MY RECOMMENDATION WOULD BE TO CONTINUE WITH STREPTOKINASE AT THE UNIVERSITY OF CALIFORNIA MEDICAL CENTER IN SAN FRANCISCO CARDIOLOGY CHIEF WILLIAM PARMLEY SAID THAT THE GOLD STANDARD HERE UNTIL THIS STUDY WAS STREPTOKINASE AND THAT THE STUDY'S OUTCOME CLEARLY WILL LEAD TO SOME SHIFTING TOWARD TPA BUT TPA'S TENFOLD PRICE PREMIUM WILL SLOW THAT SHIFT YOU HAVE TO TREAT 100 PATIENTS WITH TPA TO SAVE ONE ADDITIONAL LIFE AND THE COST DIFFERENTIAL BETWEEN THE DRUGS IS ABOUT 2000 DR PARMLEY SAID SO FOR 200000 YOU'VE SAVED ONE LIFE THIS MAKES IT DIFFICULT FOR MANAGED CARE TO MAKE DECISIONS SAID MARK A HLATKY A STANFORD UNIVERSITY HEALTH POLICY EXPERT IT'S VERY EXPENSIVE FOR THE AMOUNT OF TIME IT ADDS TO PEOPLE'S LIFE EXPECTANCY STILL DR HLATKY AND OTHERS SAID TPA APPEARS TO BE COMPETITIVE WITH OTHER COSTLY MEDICAL TREATMENTS SOCIETY HAS SANCTIONED SUCH AS KIDNEY DIALYSIS CORONARY BYPASS SURGERY OR TREATMENT FOR HYPERTENSION SECURITIES ANALYSTS DISAGREED ON THE IMPACT OF THE TRIAL'S RESULTS ON GENENTECH'S FORTUNES IT COULD TAKE TWO OR THREE YEARS BUT WE COULD SEE TPA SALES OF 500 MILLION PREDICTED STUART WEISBROD OF MERRILL LYNCH IN NEW YORK LAST YEAR GENENTECH POSTED PROFIT OF 208 MILLION OR 18 CENTS A SHARE ON REVENUE OF ABOUT 507 MILLION THAT INCLUDED TPA SALES OF 180 MILLION IN ANTICIPATION OF TPA'S RESURGENCE DAVID STONE OF COWAN CO SAID HE MAY DOUBLE HIS 1993 EARNINGS FORECAST TO 40 CENTS A SHARE FROM HIS PREVIOUS ESTIMATE OF 20 CENTS A SHARE BUT MR STONE CAUTIONED THE CHOICE OF THROMBOLYTIC DRUGS FOR SOME DOCTORS IS LIKE RELIGION WHATEVER THEY WERE TAUGHT TO GIVE IS THE ONE THEY LIKE BEST 9305030048 930503 US AIRLINES BEGIN COURTING VIETNAM TEMPTED BY THE PROMISE OF FREER TRADE BY SUSAN CAREY STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG EAGER FOR NEW MARKET OPPORTUNITIES IN A FAIRLY BLEAK AVIATION LANDSCAPE US AIRLINES ARE LOBBYING HARD TO MAKE A FAVORABLE IMPRESSION WITH VIETNAM AIRLINES THE STATEOWNED AIRLINE'S HEADY TRAFFIC GROWTH AS WELL AS ITS APPETITE FOR MODERN EQUIPMENT AND EXPERTISE HAS US COMPANIES WOOING THE HANOI COMPANY OF COURSE THERE'S ALSO THE PROSPECT OF THE UNITED STATES' ONE MILLION ETHNIC VIETNAMESE FILLING UP FUTURE FLIGHTS ALL US FIRMS WANT TO HAVE DISCUSSIONS NOW THAT THE US ALLOWS IT OBSERVES PHAM PHU KHOI VIETNAM AIR'S MANAGER IN HONG KONG IN DECEMBER THE US EASED TRADE SANCTIONS AGAINST VIETNAM THOUGH AN EMBARGO REMAINS IN EFFECT THE MOVE PERMITS US COMPANIES TO NEGOTIATE CONTRACTS WITH VIETNAMESE COMPANIES WHICH WOULD TAKE EFFECT ONCE THE EMBARGO IS LIFTED IN RECENT MONTHS THE AIRLINE HAS BEEN VISITED BY THE LIKES OF DELTA AIR LINES CHAIRMAN RONALD W ALLEN AND STEPHEN WOLF CHAIRMAN AND CHIEF EXECUTIVE OF UAL CORP PARENT OF UNITED AIRLINES DELEGATIONS HAVE ALSO COME CALLING FROM CONTINENTAL AIRLINES A UNIT OF CONTINENTAL AIRLINES HOLDINGS INC AS WELL AS THE NORTHWEST AIRLINES UNIT OF WINGS HOLDING INC AND AMR CORP'S AMERICAN AIRLINES UNIT MANUFACTURERS ALSO ARE VISITING HANOI ACCORDING TO VIETNAM AIR BOEING CO HELPED CONDUCT A SEMINAR ON AIRCRAFT EVALUATION FOR AIRLINE STAFFERS EQUIPMENT OFFERS CONDITIONAL UNTIL THE EMBARGO ENDS HAVE ARRIVED FROM MCDONNELL DOUGLAS CORP AND AIRBUS INDUSTRIE AS WELL AS VIETNAM AIR STRIVES TO REPLACE ITS FLEET OF OLD INEFFICIENT RUSSIANBUILT PLANES JUST HOW RICH ARE THE PICKINGS IN VIETNAM IF THE EXPERIENCE OF OTHER OVERSEAS CARRIERS IS ANY CLUE VIETNAM'S POTENTIAL WARRANTS ATTENTION CATHAY PACIFIC AIRWAYS LTD FOR EXAMPLE BEGAN SERVING BOTH HO CHI MINH CITY AND HANOI FROM HONG KONG IN 1991 PROFITS AND EXPENSES ARE SPLIT 5050 IN A JOINT VENTURE WITH VIETNAM AIR WHICH ALSO FLIES THE TWO ROUTES BOTH SIDES SAY THE OPERATION IS SUCCESSFUL INDEED CATHAY RECENTLY ADDED A FOURTH WEEKLY FLIGHT TO HANOI AND SAYS IT WILL ADD A FIFTH IN JULY HANOI IS AN OVERLOOKED GEM SAYS RICHARD STIRLAND CATHAY'S DIRECTOR OF CORPORATE DEVELOPMENT TRAFFIC IS GREAT OR CONSIDER THE TRAFFIC THAT HAS DEVELOPED ON ROUTES BETWEEN VIETNAM AND TAIWAN FOUR CARRIERS TWO FROM EACH COUNTRY NOW PLY THE ROUTES AND TAIWAN HAS QUICKLY BECOME VIETNAM AIR'S LARGEST FOREIGN MARKET DEMAND FOR SEATS TO VIETNAM IS SO GREAT THAT THE ADDITION OF NEW ROUTES HARDLY DENTS TRAFFIC ON EXISTING ONES SAYS STEPHEN MILLER MANAGING DIRECTOR OF TRINITY AVIATION HIS HONG KONGBASED COMPANY IS AN INVESTOR IN THE CONCERN THAT ACTS AS VIETNAM AIR'S SALES AGENT THERE FACED WITH GIANT LOSSES EMPLOYEE LAYOFFS AND VICIOUS FARE WARS AT HOME IT'S NO WONDER SOME US AIRLINES ARE LOOKING AT NEW MARKETS AND VIETNAM IS THE BIGGEST OF THE LAST FRONTIERS SAYS JAMES REINNOLDT NORTHWEST'S REGIONAL MANAGING DIRECTOR FOR THAILAND AND INDOCHINA ASIDE FROM THE LARGE VIETNAMESE POPULATION IN THE US HE SAYS THERE ARE VETERANS OF THE VIETNAM WAR WHO MIGHT WANT TO VISIT AND VIETNAM IS POISED TO BECOME A MAJOR ASIAN TOURIST DESTINATION IT HAS ALL THE INGREDIENTS FOR A VIABLE OPERATION MR REINNOLDT SAYS BUT NOT ALL US CARRIERS ARE SO SANGUINE DESPITE THEIR LOBBYING THE MEDIA IS BUILDING VIETNAM UP AS A KLONDIKE SAYS ONE FRUSTRATED US AIRLINE EXECUTIVE REFERRING TO THE ALASKAN GOLDRUSH AREA OF THE LATE 19TH CENTURY I'M NOT SURE IT'S THAT IMPORTANT FOR US DELTA WHICH HOSTED VIETNAM AIR'S THENDIRECTORGENERAL NGUYEN HONG NHI ON A TRIP TO WALT DISNEY WORLD IN FLORIDA LAST YEAR SAYS IT HAS DONE ITS GROUNDWORK IN VIETNAM BUT BECAUSE OF ITS LOSSES IN THE PAST TWO YEARS DELTA IS GOING TO LOOK VERY CLOSELY BEFORE WE ENTER ANY NEW DESTINATION SAYS A SPOKESMAN IN ATLANTA WE WANT TO PUT EFFORTS WHERE WE KNOW WE CAN MAKE MONEY CONTINENTAL MEANWHILE HAS OFFERED TO HELP WITH TRAINING VIETNAM AIR SAYS AND UNITED HAS PROPOSED CARRYING TRAFFIC BETWEEN VIETNAM AND THE US VIA TAIPEI ONCE THE EMBARGO IS LIFTED US CARRIERS WONDER IF THE VIETNAMESE WILL EMBRACE OPEN SKIES OR WHETHER THEY WILL LIMIT TO ONE OR TWO THE NUMBER OF US AIRLINES FLYING IN THE FRENZY NOW IS BECAUSE YOU WANT TO BE ONE OF THE ONES THERE SAYS A US AIRLINE EXECUTIVE OR YOU WANT TO BE THE ONE IF THERE IS ONLY ONE FOR NOW VIETNAM AIR AND THE COUNTRY'S CIVIL AVIATION ADMINISTRATION CONTINUE TO TALK TO ALL COMERS THE VIETNAMESE LIKE TO BE WOOED SO THEY NEVER SAY NO TO ANYONE SAYS MR MILLER OF TRINITY AVIATION MEMORANDUMS OF UNDERSTANDING BUT VIETNAM AIR IS BEGINNING TO PICK AND CHOOSE ACCORDING TO THE AIRLINE'S INTERNATIONALAFFAIRS OFFICE THERE IS A MEMORANDUM OF UNDERSTANDING WITH BOEING FOR THE PURCHASE OR LEASE OF FOUR 737 TWINJETS ONCE THE EMBARGO IS LIFTED THERE IS ALSO A MEMORANDUM WITH A CONSORTIUM THAT INCLUDES AMR SERVICES GROUP A SISTER COMPANY OF AMERICAN AIRLINES TO HELP VIETNAM SPRUCE UP ITS AIRPORTS AND POSSIBLY BUILD MORE AN AMR EXECUTIVE CONFIRMS AND THERE IS A MEMORANDUM WITH ABACUS DISTRIBUTION SYSTEMS PTE A SINGAPOREBASED AIRLINE COMPUTERRESERVATIONS COMPANY BECAUSE OF US PARTICIPATION IN ABACUS THAT DEAL TOO MUST WAIT FOR THE EMBARGO TO BE LIFTED 9305030047 930503 MAYBE THEIR STATUE OF LIBERTY WILL GRIP A BIG SLICE OF PIZZA FREE OF SOCIALISM BUT SHORT OF MOZZARELLA EAST EUROPE MAKES PIES ANY WAY IT CAN BY BARRY NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL WARSAW A FASTFOOD STAND ON CHMIELNA STREET ENCAPSULATES THE WHOLE EXPANSE OF EASTERN EUROPE'S POSTCOMMUNIST PIZZAFICATION THROUGH ITS WINDOW GRAZYNA KALISZ DISPENSES TWO DISHES ZAPIEKANKI POLISH COMMUNISM'S BRAVEST ATTEMPT TO SIMULATE THE PIZZA PIE AND THE DELICJA A LEADINGEDGE PREPACKAGED BRAND OF PIZZA MASS PRODUCED BY POLISH CAPITALISM A ZAPIEKANKI IS HALF A LONG ROLL WITH MELTED CHEESE AND MUSHROOM FLECKS ON TOP MS KALISZ MAKES THEM ON THE SPOT THE DELICJA IS ROUND SPRINKLED WITH HAM AND CHEESE AND COMES FROM THE FACTORY FROZEN IN A PLASTIC BAG MS KALISZ THAWS THEM OUT IN HER MICROWAVE A MIDDLEAGED WOMAN ORDERS A ZAPIEKANKI MS KALISZ SQUIRTS A SQUIGGLE OF KETCHUP ON ONE AND SERVES IT IN EXCHANGE FOR 45 CENTS IF YOU ARE HUNGRY YOU EAT THE WOMAN SAYS TAKING A BITE THEN A TEENAGE BOY WALKS UP AND ORDERS A DELICJA MS KALISZ COOKS ONE ADDS A THICK GLOP OF KETCHUP AND ACCEPTS 65 CENTS I USED TO BUY ZAPIEKANKI THE BOY SAYS BUT PIZZA IS MORE FOOD SO IT IS THAT THE HANDTOMOUTH HABITS OF THE PAST ARE EVOLVING INTO THE FACESTUFFING TECHNIQUES OF THE FUTURE FOR THE MASSES WHO WITHSTOOD THE MENUS OF GASTRONOMIC CENTRALISM PIZZA HAS BECOME A SYMBOL OF INTESTINAL LIBERATION YET THE ROAD FROM ZAPIEKANKI TO DELICJA IS PAVED WITH HARDSHIP AND CONTROVERSY THE SAUCE SHORTAGE THE MOZZARELLA QUESTION THE SPICE BARRIER AND THE ISSUE OF FRUIT STAGES OF PIZZA PROGRESS ARE LEADING INDICATORS IN EASTERN EUROPE WESTERNIZATION SEEMS TO ADVANCE IN STEP WITH THE CHOICE OF TOPPINGS AMERICANS OF DEEPDISH PERSUASION ARE BOTH THE SLICKEST AND THE SORRIEST OF THE EAST'S PIZZA MISSIONARIES THE BUDAPEST PIZZA HUT WITH ALL THE MOZZARELLA PEPSICO CAN BUY DOESN'T JUST SELL ITS USUAL AMALGAM OF BREAD AND GOO IT SELLS HOLLYWOOD MOVIESTAR MURALS LINE THE WALLS DUMMIES IN EVENING DRESS LOLL AT CAFE TABLES THE PLACE IS MORE STORK CLUB THAN FAMILY RESTAURANT BUT 600 MILES FROM BUDAPEST AND 6000 FROM CHICAGO WHERE BOTH SHE AND THE DEEPDISH WERE BORNRITA DAPKUS LIVES IN MOZZARELLA PREHISTORY SHE HAS OPENED A TAKEOUT PIZZA KITCHEN IN A FACTORY AT THE EDGE OF VILNIUS IN LITHUANIA ON THE TABLE IN FRONT OF HER LIES A SLAB OF BREAD APPARENTLY COVERED WITH MELTED PLASTIC I'M NOT HAVING ANY SAYS MS DAPKUS I CAN'T LOOK AT IT ANY MORE THE PLASTIC IS A SOVIET VARIATION ON VELVEETA AND THE RED OOZE BENEATH IT A MIX OF SCARCE TOMATOES AND SURPLUS APPLES MS DAPKUS EYES IT MOROSELY I CAN'T MAKE DEEPDISH WITHOUT MOZZARELLA I'D LOVE TO MAKE DEEPDISH PIZZA IS HER SECOND LITHUANIAN CAREER MS DAPKUS FIRST RAN THE PRESS OFFICE OF THE SAJUDIS LIBERATION MOVEMENT SWEATING THROUGH THE INDEPENDENCE FIGHT AND THE MOSCOW COUP LAST OCTOBER SHE DECIDED TO TRY SOMETHING REALLY CHALLENGING OVERCOMING THE RESISTANCE OF THE AVERAGE FAMILY TO CALLING UP WHEN THEY DON'T FEEL LIKE COOKING THAT ISN'T THE ONLY CHALLENGE ON THE WALL OF HER KITCHEN IS A BLACKLIST OF PEOPLE WHO CALL BUT DON'T PAY AS FOR MOZZARELLA IMPORTING IT IS BEYOND HER MEANS YET MS DAPKUS YEARNS TO MAKE HER OWN AND TO CHASE OTHER RAINBOWS TOO I WANT TO GET THE PIZZA PERFECT SHE SAYS AND THEN I'D LOVE TO SHOW ALL LITHUANIA WHAT A TACO IS LIKE THE OVERTHROW OF COMMUNISM THE STRUGGLE FOR PIZZA BEGAN HERE IN POLAND EWA GADOWSKA WAS AT THE VANGUARD SHE FOUGHT FOR 20 YEARS TO EVICT THE TAILOR'S SHOP ON THE FIRST FLOOR OF HER HOUSE IN 1988 SHE TRIUMPHED AND OPENED SANTANA WARSAW'S FIRST PIZZERIA IN THE OLD REGIME MS GADOWSKA SAYS WE HAD NO FAVORABLE CONDITIONS FOR PIZZA HER PLACE HASN'T CHANGED BRICK WALLS SOFT LIGHTS TWO TABLES AND A COUNTER WITH EIGHT STOOLS A PSYCHOLOGIST MS GADOWSKA DIDN'T KNOW HOW TO MAKE A PIZZA IT WAS A MATTER OF CREATIVITY SHE SAYS THE FRUIT PIZZA WAS MY IDEA IT STILL SUGARS THE MENU IN TWO COMBINATIONS BANANA ORANGE PINEAPPLE TOMATO SAUCE AND CHEESE HAM ANCHOVIES OLIVES BANANA AND MUSSELS PEOPLE LIKE IT VERY MUCH SAYS MS GADOWSKA HAVING LIT THE FUSE SHE STOOD BACK AND WATCHED THE POLISH PIZZA EXPLODE SINCE THE REVOLUTION NEARLY 100 PIZZERIAS HAVE FIRED UP IN WARSAW ALONE PIZZA PACKS FREEZERS OF NEW SUPERMARKETS AND FREEZES OUT ZAPIEKANKI IN SIDEWALK STANDS ALL OVER TOWN THROUGH THE NIGHT JUMPSUITED RUNNERS OF PIZZERIA UFO PAD OVER THE COBBLES OF THE OLD TOWN LIKE MEDIEVAL HERALDS BEARING PIZZAS BEFORE THEM IT WILL KEEP EXPANDING AND EXPANDING ROMAN OSINSKI SAYS IN HIS WAREHOUSE I WANT TO INTRODUCE SALAMI MAYBE NAPKINS MR OSINSKI AMID STACKS OF CANNED ARTICHOKES AND APRICOTS MAY BE THE BIGGEST PIZZAPARLOR SUPPLIER IN POLAND OTHER WHOLESALERS HAVE PINEAPPLES OR ORANGES OR PEACHES HE SAYS NO ONE ELSE HAS EVERYTHING MR OSINSKI HOWEVER DOES NOT HAVE MOZZARELLA AS THE OWNER OF ANOTHER PIZZERIA SAYS POLES PREFER GOUDA FOR FOREIGNERS TRYING TO BRING INTERNATIONAL PIZZA STANDARDS TO POLAND THIS GRATES POLES DON'T UNDERSTAND MOZZARELLA'S TRUE FUNCTION SAYS ANDY RAFALAT OF PIZZA HUT THEY DON'T REALIZE THAT THE CHEESE HOLDS THE INGREDIENTS TOGETHER HE IS IN WARSAW TO WORK ON OPENING NINE PIZZA HUTS AT LEAST AND HAS LOCATED A PIONEERING DAIRY COOP THAT MAKES POLISH MOZZARELLA IT'S REASONABLE HE SAYS IT STRETCHES AS A DEEPDISH AFICIONADO MR RAFALAT UNDERSTANDS THE TRIALS OF WHAT HE CALLS THE ITALIAN STYLE EARLY DAYS OF POLISH PIZZA WE STARTED OUT THIN AND CRISPY TOO HE SAYS AT THAT ROBERTO GUARINO TAKES UMBRAGE MR GUARINO MOVED FROM SICILY TO POLAND WITH A MISSION TO INTRODUCE ITALIAN CULTURE AND ITALIAN CUISINE HE DOES NOT DEEM POLISH PIZZA ITALIAN STYLE ONLY IN GERMANY DO YOU EAT SUCH HORRIBLE THINGS AS PIZZA WITH MARMALADE MR GUARINO SAYS PIZZA ORIGINATED IN ITALY SINCE 1830 NEVER WITH FRUIT YOU CANNOT EAT A PIZZA WITH A PINEAPPLE IN HIS PIZZERIA FONTANA DI TREVI MR GUARINO SERVES PIZZA BY THE SLICE IT HAS A BIT OF CHEESE A LIGHT COAT OF TOMATO SAUCE AND A CRUST CRISPY TO THE POINT OF BEING TEETHRESISTANT A WOMAN EATING THERE CALLS HER LUNCH A HORRIBLE EXPERIENCE THE SHOCK OF PIZZAFICATION IT SEEMS IS STILL TOO MUCH FOR SOME POLES THAT IS WHY ROMAN KNAPIK HAS ENTERED A POLISHITALIANSWISS JOINT VENTURE AT HIS PIZZERIA DA ELIO HE IS SEEKING A MIDDLE WAY SOME ITALIANS AREN'T DOING WELL IN WARSAW MR KNAPIK SAYS DOWNING A MORNING ESPRESSO IN THE DINING ROOM THEY DON'T KNOW THE POLISH EXPERIENCE HALF THE COUNTRY HAS STOMACH PROBLEMS RESULTING FROM THE OLD REGIME A POLE PICKS OUT ROSEMARY AND COMPLAINS I GAVE HIM NEEDLES FROM A PINE TREE SAME WITH OREGANO I TALK TO THEM I CONVINCE THEM IT'S NOT POISON I'M TEACHING PEOPLE TO EAT PIZZA WITH HOT PEPPERS SLOWLY I'M INTRODUCING MORE AND MORE GARLIC STEP BY STEP THEY GET USED TO IT MR KNAPIK DOWNS A SECOND ESPRESSO SOMEONE WHO WANTS TO DO WELL HERE HE SAYS HAS TO REMEMBER WHAT WE WENT THROUGH AT THE COUNTER BEHIND HIM THE STAFF IS GETTING READY FOR THE LUNCHTIME RUSH LAYING OUT PIZZAS IN BIG PANS LIKE MR GUARINO MR KNAPIK SELLS BY THE SLICE THE SLICES ARE ALSO SQUARE AND NOT TOO HEAVY ON SAUCE OR CHEESE BUT HERE OREGANO IS OPTIONAL IN A SHAKER NEAR THE COUNTER AND IN THE CENTER OF EACH SLICE OF MR KNAPIK'S PIZZA IS ONE EXTRA TOUCH A FAMILIAR GREEN ROUND OF POLISH PICKLE 9305030046 930503 MARKETING & MEDIA DISNEY AGREES TO BUY THE DISTRIBUTOR OF CRYING GAME' AT POSSIBLY 60 MILLION BY THOMAS R KING AND RICHARD TURNER STAFF REPORTERS OF THE WALL STREET JOURNAL HOLLYWOOD SHOWING THAT MAJOR STUDIOS PAID ATTENTION AS INDEPENDENT FILMS TOOK THIS YEAR'S OSCARS BY STORM WALT DISNEY CO AGREED TO ACQUIRE MIRAMAX FILMS CORP THE INDEPENDENT DISTRIBUTOR OF THE CRYING GAME TERMS WEREN'T DISCLOSED BUT SOME INDIVIDUALS CLOSE TO THE TRANSACTION ESTIMATED DISNEY AGREED TO PAY AS MUCH AS 60 MILLION SEVERAL INDUSTRY OBSERVERS EXPRESSED SURPRISE DISNEY WOULD PAY SUCH A HIGH PRICE MIRAMAX'S MAIN ASSET IS PROBABLY THE EXPERTISE OF ITS MANAGEMENT AND DISNEY IS LEERY OF OVERPAYING FOR ASSETS IN ANY EVENT IN AN AVERAGE RECENT YEAR PEOPLE FAMILIAR WITH MIRAMAX SAID IT POSTED NET INCOME OF ABOUT 5 MILLION ON REVENUE OF ABOUT 75 MILLION THIS YEAR PROCEEDS FROM THE CRYING GAME ARE EXPECTED TO BOOST REVENUE ABOVE 100 MIL LION MIRAMAX IS KNOWN FOR ACQUIRING AND SOMETIMES PRODUCING INDEPENDENT MOTION PICTURES THAT ATTRACT AN ARTHOUSE CROWD AND ARE POPULAR WITH CRITICS IF A BIT DEMANDING FOR MAINSTREAM AUDIENCES IN THIS WORLD A BOXOFFICE GROSS OF 10 MILLION IS A HOME RUN AND COSTS MUST BE TIGHTLY SCRUTINIZED THIS IS SMALL POTATOES FOR THE BIG MOVIE STUDIOS AND EVEN THOUGH SEVERAL OF THEM USED TO HAVE CLASSICS DIVISIONS THE PRACTICE WAS DROPPED BECAUSE DEVOTING OVERHEAD TO SUCH A NICKELANDDIME BUSINESS DIDN'T SEEM EFFICIENT THIS ATTITUDE CHANGED THIS YEAR WITH THE SUCCESS OF SUCH FILMS AS THE CRYING GAME AND HOWARDS END DISNEY EXECUTIVES SAT HELPLESSLY AS RIVAL SONY CORP WITH ITS COLUMBIA AND TRISTAR STUDIOS BOUGHT ADS IN THE TRADE NEWSPAPERS TRUMPETING ITS 30 ACADEMY AWARD NOMINATIONS MORE THAN A THIRD OF THESE CAME FROM ARTHOUSE PICTURES SUCH AS HOWARDS END AND INDOCHINE THAT WERE RELEASED BY ITS TINY SONY CLASSICS UNIT DISNEY GOT JUST FIVE NOMINATIONS ALL FOR ALADDIN MIRAMAX HAD NINE INCLUDING A BESTPICTURE NOMINATION FOR THE CRYING GAME THE FILM WON FOR BEST SCREENPLAY MOREVER IT HAS GROSSED 60 MILLION WHILE HOWARDS END HAS GROSSED 25 MILLION DISNEY SEEKS THIS PRESTIGE FOR ALL ITS CASH AND A FILM DIVISION THAT ALONG WITH TIME WARNER INC'S IS THE ENVY OF THE INDUSTRY DISNEY IS KNOWN FOR MAKING BREEZILY COMMERCIAL MOVIES THAT DON'T ALWAYS STICK TO THE RIBS SUCH AS SISTER ACT OR PRETTY WOMAN PART OF THE REASON IS THAT DISNEY IS UNWILLING TO PAY OR CEDE CONTROL TO MANY OF THE BLUECHIP FILMMAKERS IN HOLLYWOOD STUDIO CHIEF JEFFREY KATZENBERG WAS IMPRESSED WHEN HE SAW HOWARDS END LAST YEAR AND SOON AFTER SIGNED A MULTIPICTURE PACT WITH ITS CREATOR MERCHANT IVORY PRODUCTIONS WITH ITS VIGOROUS CHILDREN'S FRANCHISE DISNEY IS INCLINED TO STAY AWAY FROM OVERLY VIOLENT AND EXPLOITATIVE FARE SO IS WELLPOSITIONED TO DEFINE ITSELF AS A PURVEYOR OF QUALITY MOVIES THESE MOVIES ALSO PROVIDE AN OPPORTUNITY FOR DISNEY TO USE MIRAMAX MOVIES AS A FARM TEAM TO DISCOVER AND CORRAL NEW ACTORS WRITERS AND DIRECTORS THESE FILMS ALSO TEND TO BE INEXPENSIVE MIRAMAX PAID PERHAPS 15 MILLION TO 25 MILLION FOR THE US RIGHTS TO THE CRYING GAME PLUS ANOTHER 5 MILLION IN MARKETING COSTS ACCORDING TO INDIVIDUALS CLOSE TO THE COMPANY MARKETING AND DISTRIBUTION SAVVY ARE THE SKILLS OF MIRAMAX COPRESIDENTS BOB AND HARVEY WEINSTEIN WHO WILL CONTINUE TO RUN THE NEW DISNEY UNIT OUT OF NEW YORK UNDER FIVEYEAR CONTRACTS AS AN INDEPENDENT SUBSIDIARY RELEASING FILMS UNDER THE MIRAMAX NAME MIRAMAX WILL NOW HAVE ACCESS TO DISNEY'S FORMIDABLE WORLDWIDE DISTRIBUTION NETWORK FOR ANCILLARY RESOURCES SUCH AS VIDEO TELEVISION CABLE PAYPERVIEW AND SYNDICATION BUT MANY OF MIRAMAX'S EXISTING FILMS IN ITS 200FILM LIBRARY ALREADY ARE ENCUMBERED BY PRIOR RIGHTS AGREEMENTS VIDEO RIGHTS TO THE CRYING GAME FOR INSTANCE RECENTLY WERE SOLD TO LIVE ENTERTAINMENT INC DISNEY ALSO BRINGS CLOUT IN A TOUGH MARKETPLACE SUPPLYING MORE MUSCLE IN REACHING TERMS WITH EXHIBITORS DISNEY CONTINUES TO EXPAND ITS RELEASE SCHEDULE THIS YEAR IT'S LEADING THE MARKETSHARE BATTLE WITH ABOUT A 20 SHARE OF BOXOFFICE RECEIPTS ACCORDING TO DAILY VARIETY MR KATZENBERG ESTIMATED THE COMPANY'S MOVIE OPERATIONS COULD RELEASE 60 FILMS IN 1994 INCLUDING MIRAMAX RELEASES MIRAMAX SAID IT WILL CONTINUE TO RELEASE ABOUT 20 MOVIES A YEAR AMONG ITS FUTURE PROJECTS A WRINKLE IN TIME THE CHILDREN'S CLASSIC BY MADELEINE L'ENGLE SOME OBSERVERS WONDERED WHETHER A MOVIE LIKE THIS IN WHICH DISNEY WOULD TAKE AN OBVIOUS INTEREST MIGHT PROVIDE AN ARENA FOR DISPUTES BETWEEN STRONGWILLED DISNEY EXECUTIVES AND THE WEINSTEIN BROTHERS WHO HAVE A REPUTATION AS SOMETIMESABRASIVE ENTREPRENEURS MIRAMAX CONTINUALLY HAS SOUGHT FINANCING AND CONSIDERED GOING PUBLIC IN 1991 BUT THE PLAN WAS ABANDONED PARTLY BECAUSE THE WEINSTEINS DIDN'T WANT TO GIVE UP CONTROL INDEED THEY BOUGHT OUT THE EQUITY INTEREST OF UKBASED MERCHANT BANKER MIDLAND MONTAGUE LAST YEAR PRIOR TO THE WIDE RELEASE OF THE CRYING GAME ACCORDING TO INDIVIDUALS CLOSE TO THE COMPANY DISNEY'S MOVE ALSO WAS STRATEGIC ALTHOUGH THE OTHER MIRAMAX SUITOR PARAMOUNT COMMUNICATIONS INC REPORTEDLY DIDN'T MAKE A SERIOUS PURSUIT THE SPECIALTY FILM BUSINESS HAS SEVERAL PLAYERS INCLUDING UNITS OF SAMUEL GOLDWYN CO NEW LINE CINEMA CORP AND NEWLYFORMED OCTOBER FILMS BUT MIRAMAX AND SONY CLASSICS ARE THE MAJOR PLAYERS SONY ACQUIRED SONY CLASSICS FAR MORE CHEAPLY IT SIMPLY HIRED THE THREE FORMER PRINCIPALS OF THE CLASSICS DIVISION OF THENCOLLAPSING ORION PICTURES CORP 9305030045 930503 HONG KONG SHIPPING RISES HONG KONG HONG KONG SHIP ARRIVALS ROSE 29 TO 7208 IN THE FOURTH QUARTER OF 1992 AND THEY CARRIED A TOTAL CAPACITY OF 359 MILLION NET REGISTERED TONS A 16 INCREASE FROM THE PREVIOUS YEAR THE CENSUS AND STATISTICS DEPARTMENT SAID ACCORDING TO OFFICIAL FIGURES TONNAGE OF CARGO DISCHARGED FROM INCOMING SHIPS ROSE 15 AND TOTALED 156 MILLION TONS MEANWHILE THE NUMBER OF OUTGOING SHIPS INCREASED 28 TO 7171 AND THEIR CAPACITY ROSE 15 TO 361 MILLION NET REGISTERED TONS THE TOTAL TONNAGE OF CARGO LOADED ONTO OUTGOING SHIPS WAS 73 MILLION TONS REPRESENTING AN INCREASE OF 19 YEARONYEAR 9305030044 930503 SOUTH KOREA'S PRICES RISE SEOUL SOUTH KOREA'S CONSUMER PRICES IN APRIL ROSE 06 FROM MARCH MARKING THE SMALLEST MONTHLY INCREASE SINCE THE START OF THIS YEAR THE NATIONAL STATISTICAL OFFICE SAID THE CONSUMERPRICE RISE FOR APRIL FOLLOWED INCREASES OF 08 IN JANUARY 07 IN FEBRUARY AND 13 IN MARCH 9305030043 930503 KLEINWORT BENSON'S CHIEF EXECUTIVE SAID TO BE LEAVING BANK LONDON KLEINWORT BENSON GROUP PLC THE BRITISH MERCHANT BANK APPEARS TO BE HEADING FOR A TOPMANAGEMENT SHAKEUP AS PART OF A DRIVE TO GIVE IT A MORE AGGRESSIVE MARKET PROFILE ACCORDING TO BRITISH PRESS REPORTS KLEINWORT'S CHIEF EXECUTIVE JONATHAN AGNEW IS TO LEAVE THE BANK THIS YEAR NO COMMENT WAS OBTAINABLE FROM KLEINWORT ON THE REPORTS IF CONFIRMED HOWEVER MR AGNEW'S DEPARTURE SAID TO HAVE BEEN AGREED ON AMICABLY WOULD MARK ONE OF THE FIRST MOVES BY THE BANK'S NEW CHAIRMAN LORD ROCKLEY WHO TOOK OVER FROM DAVID PEAKE LAST WEEK AFTER TAKING A LEADING ROLE IN THE INITIAL WAVE OF UK PRIVATIZATIONS IN THE 1980S KLEINWORT HAS LAGGED BEHIND ITS MAIN RIVALS SG WARBURG GROUP PLC AND SCHRODERS PLC IN RECENT YEARS LAST WEEK IT WITHDREW FROM PARTICIPATION IN THE BRITISH GOVERNMENT'S 55 BILLION 866 BILLION SALE OF SHARES IN BRITISH TELECOMMUNICATIONS PLC AFTER A DISAGREEMENT WITH WARBURG OVER THE ROLE IT WAS OFFERED IN THE OPERATION TWO YEARS AGO FRANCE'S BANQUE NATIONALE DE PARIS TOOK A 47 IN KLEINWORT'S CAPITAL PROMPTING SPECULATION THAT THIS MIGHT BE A PRELUDE TO CLOSER COOPERATION AND POSSIBLY A TAKEOVER IN ASSOCIATION WITH DRESDNER BANK WITH WHICH BNP HAS A COOPERATION AGREEMENT SO FAR HOWEVER NOTHING HAS MATERIALIZED 9305030042 930503 CREDIT RATINGS BORDEN INC NEW YORK MOODY'S INVESTORS SERVICE INC DOWNGRADED THE LONGTERM DEBT OF THIS FOOD PRODUCTS AND CHEMICALS CONCERN CITING CONTINUING WEAK EARNINGS AND DOUBT ABOUT THE EFFECTIVENESS OF THE COMPANY'S RESTRUCTURING EFFORTS ABOUT 16 BILLION OF DEBT IS AFFECTED MOODY'S SAID THAT DESPITE BORDEN'S CURRENT EFFORTS AND ITS ONE COMPANY RESTRUCTURING STRATEGY PAST RESTRUCTURINGS HAVE FAILED TO YIELD EXPECTED BOTTOMLINE BENEFITS IT ALSO NOTED THAT BORDEN'S MARKETS HAVE GROWN MORE COMPETITIVE MOODY'S LOWERED ITS RATINGS TO TRIPLEA FROM DOUBLEA IT ALSO DOWNGRADED BORDEN'S SHELF REGISTRATION DEBT RATING TO PRELIMINARY TRIPLEA FROM PRELIMINARY DOUBLEA AND ITS SHORTTERM COMMERCIAL PAPER RATING TO PRIME 2 FROM PRIME 1 RIGGS NATIONAL CORP WASHINGTON DC STANDARD & POOR'S CORP LOWERED ITS RATING ON SUBORDINATED DEBT OF THIS BANKING COMPANY TO TRIPLECPLUS FROM SINGLEB THE COMPANY WAS REMOVED FROM CREDITWATCH WHERE IT HAD BEEN PLACED WITH NEGATIVE IMPLICATIONS THE DOWNGRADE AFFECTS ABOUT 65 MILLION OF LONGTERM DEBT S&P SAID THE DOWNGRADE IS A RESULT OF PERSISTENT ASSET QUALITY PROBLEMS AT RIGGS'S LONDON UNIT AND DOMESTIC ASSET QUALITY PRESSURES ALONG WITH THE COMPANY'S OVERALL PERFORMANCE RIGGS HAS SUFFERED NET LOSSES FOR THREE CONSECUTIVE YEARS RIGGS SAID IT WAS DISAPPOINTED WITH THE DOWNGRADE PARTICULARLY IN LIGHT OF STEPS THE COMPANY TOOK LAST YEAR IN AN ATTEMPT TO RESOLVE ITS PROBLEMS SUCH EXPENSE REDUCTIONS PRODUCT MODIFICATIONS AND A REVIEW OF INTERNATIONAL OPERATIONS 9305030041 930503 TRAFFIC SAFETY AGENCY REBUTS GM CRITICISM OF ITS TEST METHODS DETROIT THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION RESPONDING TO CRITICISM FROM GENERAL MOTORS CORP SAYS IT SPENT OVER 10000 MANHOURS AND 500000 BEFORE CONCLUDING THAT THE FUEL TANK DESIGN IN GM'S PREVIOUSGENERATION LARGE PICKUPS POSES AN UNREASONABLE RISK OF FIRES GM IN DETROIT QUESTIONED THE METHODS AND THE MOTIVES OF THE PUBLIC SAFETY AGENCY AT A PRESS BRIEFING LAST WEEK CHARGING THAT IT IGNORED ACCIDENT DATA THAT SHOW THE TRUCKS ARE SAFE AND IT DELIBERATELY CONDUCTED TESTS OF GM'S PICKUPS SO THE GAS TANKS WOULD RUPTURE LATE FRIDAY GM SUBMITTED TO THE AGENCY A FORMAL 51PAGE DEFENSE OF ITS 19731987 PICKUPS WITH GAS TANKS MOUNTED OUTSIDE THE STEEL FRAME RAILS THE TRUCKS ARE NOW OUT OF PRODUCTION GM'S NEW BIG PICKUPS HAVE FUEL TANKS MOUNTED INSIDE THE FRAME RAILS THE FEDERAL SAFETY AGENCY SAID IT WILL REVIEW GM'S SUBMISSION CAREFULLY BUT IT SEEMED TO BE DIGGING IN FOR WHAT COULD BE A PROTRACTED LEGAL FIGHT WITH THE AUTO MAKER THE AGENCY SAID ITS INVESTIGATION WAS PROFESSIONAL AND THAT IT OPERATED ONLY OUT OF A CONCERN FOR PUBLIC SAFETY GM IN ITS SUBMISSION SAID THAT THE FORD F350 PICKUP AND MANY HEAVY AND MEDIUMDUTY TRUCKS ALSO HAVE SIDEMOUNTED GAS TANKS IT CANNOT BE SAID THAT A SIDEMOUNTED' TANK DESIGN IS INHERENTLY DEFECTIVE GM SAID IN ITS SUBMISSION THE AUTO MAKER SAYS THAT ACCIDENT RECORDS SHOW THAT STATISTICALLY THE TRUCKS ARE SAFE AND THE GOVERNMENT CAN'T LEGALLY RECALL A PRODUCT WHICH MEETS FEDERAL SAFETY STANDARDS 9305030040 930503 ITT SHERATON FORMS PARTNERSHIP TO BUILD A NEW ORLEANS CASINO A WALL STREET JOURNAL NEWS ROUNDUP ITT CORP SAID ITS SHERATON HOTEL SUBSIDIARY FORMED A PARTNERSHIP TO BUILD AND OPERATE A RIVERBOAT CASINO IN NEW ORLEANS ITT SHERATON WILL HOLD A MAJORITY STAKE IN THE LADY SHERATON A 1450PASSENGER RIVERBOAT TO BE DOCKED AT THE TOULOUSE STREET WHARF IN THE FRENCH QUARTER ITT SHERATON'S PARTNERS ARE NEW ORLEANS STEAMBOAT CO AND JAX RIVERBOAT CORP TWO CLOSELY HELD LOCAL CONCERNS TERMS OF THE PROJECT WEREN'T AVAILABLE ITT SHERATON A BOSTONBASED HOTEL COMPANY WITH MORE THAN 400 OWNED LEASED MANAGED AND FRANCHISED PROPERTIES HAS BEEN INTENT ON DIVERSIFYING INTO THE GAMBLING INDUSTRY JOHN V GIOVENCO ITT SHERATON'S PRESIDENT AND CHIEF OPERATING OFFICER WAS RECRUITED FROM HILTON HOTELS CORP A MAJOR HOTELCASINO COMPANY TO SPEARHEAD SHERATON'S EFFORTS ITT CORP THE PARENT COMPANY IS A DIVERSIFIED PRODUCTS AND SERVICES COMPANY BASED IN NEW YORK ITT SHERATON IS SEEKING GAMBLING LICENSES IN NEVADA AND NEW JERSEY AND IS BIDDING ON A CASINO PROJECT IN MELBOURNE AUSTRALIA THE COMPANY ALSO HOLDS ABOUT 433 MILLION OF FIRST MORTGAGE BONDS OF BALLY'S GRAND NEVADA A CASINO UNIT OF BALLY MANUFACTURING CORP OF CHICAGO THAT IS OPERATING UNDER CHAPTER 11 BANKRUPTCY PROTECTION THE UNIT IS EXPECTED TO EMERGE FROM BANKRUPTCY SHORTLY AND ITT SHERATON WILL HOLD AN 115 STAKE IN BALLY'S HOTEL CASINO IN LAS VEGAS WHEN THE MORTGAGE BONDS ARE CONVERTED TO EQUITY 9305030039 930503 USBASED MAGNETIC TECHNOLOGIES ENTERS EUROPEAN VENTURE ROCHESTER NY MAGNETIC TECHNOLOGIES CORP SAID IT FORMED A JOINT VENTURE WITH COOKSON GROUP PLC TO MANUFACTURE AND SELL PRECISION MAGNETIC ELECTRONIC AND MECHANICAL DEVICES IN EUROPE COOKSON A PUBLICLY HELD COMPANY BASED IN LONDON IS A MANUFACTURER AND SUPPLIER OF INDUSTRIAL MATERIALS INCLUDING CERAMICS PLASTICS AND ENGINEERED PRODUCTS MAGNETIC SAID IT WILL OWN 25 OF THE JOINT VENTURE TO BE CALLED MAGNETIC TECHNOLOGIES EUROPE LTD COOKSON WILL OWN 75 AS PART OF THE AGREEMENT MAGNETIC HAS GRANTED THE JOINT VENTURE A EUROPEAN LICENSE TO USE ITS TECHNOLOGY AND HAS SOLD OR LICENSED TO IT MACHINERY AND SOFTWARE IN EXCHANGE FOR FEES OF 23 MILLION IN ADDITION MAGNETIC AGREED TO WITHDRAW FROM DIRECTLY SELLING ITS USMANUFACTURED PRODUCTS IN THE EUROPEAN MARKET THE COMPANY'S SAID SUCH SALES IN THE PAST YEAR TOTALED 22 MILLION ADDITIONALLY TOKYOBASED PRIVATELY HELD MAGNET MANUFACTURER MAGX CO HAS SIGNED LICENSING AGREEMENTS WITH MAGNETIC COOKSON AND THE JOINT VENTURE UNDER THE AGREEMENT COOKSON AND MAGNETIC TECHNOLOGIES EUROPE ACQUIRED THE TECHNOLOGY AND RIGHTS TO MANUFACTURE CERTAIN TYPES OF MAGNETS FOR PRODUCTS TO BE SOLD IN EUROPE MAGNETIC ACQUIRED THE SAME FOR ITS NORTH AMERICAN AND SOUTH AMERICAN MARKETS MAGNETIC SAID THE JOINT VENTURE REPRESENTS A STEP IN ITS PROGRAM TO DIVERSIFY AND EXPAND ITS PRODUCT LINE AND CUSTOMER BASE MAGNETIC WITH ANNUAL SALES OF 15 MILLION MAKES PRECISION MAGNETIC AND MICROELECTRONIC ASSEMBLIES 9305030038 930503 POLITICS & POLICY CLINTON'S STUDENT LOAN SERVICE PLANS COME UNDER SCRUTINY ON CAPITOL HILL BY ROCHELLE SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION'S NATIONAL SERVICE AND DIRECT STUDENTLOAN PROPOSALS FACE TOUGH OPPOSITION ON CAPITOL HILL MINUTES AFTER THE PRESIDENT ANNOUNCED HIS PROGRAMS IN NEW ORLEANS FRIDAY CONGRESSIONAL AIDES STARTED RATTLING OFF A LITANY OF COMPLAINTS ABOUT THEM IT WOULD BE A MAJOR SURPRISE IF WE DID WHAT THE PRESIDENT IS SUGGESTING ONE REPUBLICAN AIDE SAID REFERRING TO CLINTON'S DIRECT STUDENTLOAN PROGRAM HE DESCRIBED THE NATIONAL SERVICE PLAN AS NOT AN EASY SELL THE TWO PROGRAMS WHICH WILL BE CONSIDERED IN SEPARATE PIECES OF LEGISLATION COULD SURVIVE IN SOME FORM BUT THEY COULD END UP LOOKING QUITE DIFFERENT FROM WHAT MR CLINTON PROPOSED THE PRESIDENT WANTS TO OVERHAUL THE CURRENT STUDENTLOAN PROGRAM ALLOWING STUDENTS TO BORROW MONEY DIRECTLY FROM THE FEDERAL GOVERNMENT RATHER THAN FROM BANKS THE ADMINISTRATION ESTIMATES THE CHANGE WOULD SAVE 43 BILLION BY FISCAL YEAR 1998 IT WOULD PASS SOME OF THOSE SAVINGS ON TO STUDENTS BY REDUCING INTEREST RATES ON THEIR LOANS THE PLAN WOULD ENABLE GRADUATES TO REPAY THEIR LOANS AT RATES BASED ON THEIR INCOMES AS REPORTED TO THE INTERNAL REVENUE SERVICE BY FREEING THEM FROM WORRY ABOUT MAKING HEFTY PAYMENTS ON THEIR COLLEGE DEBTS IT IS HOPED THE SOCALLED INCOMECONTINGENT LOANS WOULD ENCOURAGE GRADUATES TO TAKE SOCIALLY BENEFICIAL JOBS EVEN IF THE JOBS DON'T PAY WELL STUDENTS WHO DON'T CHOOSE TO TAKE ADVANTAGE OF THE INCOMECONTINGENT LOAN OPTION COULD PAY OFF THEIR LOANS IN EQUAL PAYMENTS OVER A LONG PERIOD OF TIME OR COULD OPT FOR A GRADUATED PAYMENT PLAN THE EDUCATION DEPARTMENT AND THE TREASURY WOULD DEVELOP A PLAN TO GIVE PEOPLE THE OPTION OF REPAYING THEIR LOANS THROUGH THE IRS AND WITHHOLDING TAXES THE CLINTON PLAN MAY PLEASE STUDENTS AND THEIR PARENTS BUT SOME LAWMAKERS QUESTION WHETHER IT WILL BE EFFECTIVE THEY HAVE BEEN FLOODED WITH COMPLAINTS FROM BANKERS WHO CONTEND A DIRECT LOAN PROGRAM WOULDN'T SAVE THE GOVERNMENT ANY MONEY AND COULD COST TAXPAYERS AS MUCH AS 13 BILLION BANKERS WOULD LOSE A SIGNIFICANT LINE OF BUSINESS IF THE GOVERNMENT TAKES OVER STUDENT LENDING FROM THEM WHILE MANY OBSERVERS BELIEVE THE GOVERNMENT WILL MOVE TOWARD DIRECT STUDENT LOANS THEY QUESTION WHETHER THE CONGRESS WOULD APPROVE SUCH AN OVERHAUL RIGHT AWAY THE GOVERNMENT WILL LAUNCH A PILOT LOAN PROGRAM INVOLVING ABOUT 200 SCHOOLS THIS SUMMER AND CONGRESS MAY WANT TO JUDGE ITS SUCCESS BEFORE TAKING ANY ACTIONS SEN JAMES JEFFORDS OF VERMONT RANKING REPUBLICAN ON THE SENATE EDUCATION COMMITTEE CALLED FOR A CAUTIOUS APPROACH I DO HAVE SOME SERIOUS RESERVATIONS ABOUT MOVING TOO FAST ON THE DIRECT LENDING PROPOSAL BEFORE KNOWING FOR CERTAIN THAT IT WILL SAVE MONEY FOR THE FEDERAL GOVERNMENT AND MORE IMPORTANTLY FOR STUDENTS HE SAID PRESIDENT CLINTON'S PLAN FOR NATIONAL SERVICE DIDN'T GET AN OVERWHELMING RECEPTION FROM REPUBLICANS EITHER I'M AFRAID THE PRESIDENT IS ONCE AGAIN RAISING EXPECTATIONS THAT CAN'T BE MET SAID SEN DAVID DURENBERGER OF MINNESOTA ONE OF THE LEADING REPUBLICAN SUPPORTERS OF MR CLINTON'S STUDENT LOAN PROGRAM SEN DURENBERGER SAID HE WORRIES THAT STUDENTS WILL VIEW THE NATIONAL SERVICE PROGRAM AS A WAY TO MAKE COLLEGE AFFORDABLE BUT EVEN IF FULLY FUNDED HE SAID IT WILL HELP LESS THAN 1 OF THE 16 MILLION AMERICANS GOING TO COLLEGE THE CLINTON ADMINISTRATION ALREADY MODIFIED ITS NATIONAL SERVICE PROPOSAL IN PART TO TRY TO MOLLIFY REPUBLICAN CRITICISM INSTEAD OF OFFERING STUDENTS 6500 A YEAR FOR TWO YEARS FOR PARTIPATING IN A NATIONAL SERVICE PROGRAM AS THE PRESIDENT ORIGINALLY WANTED MR CLINTON PROPOSED TO LET STUDENTS RECEIVE JUST 5000 IN EACH OF THE TWO YEARS THE MONEY COULD BE USED TO PAY TUITION AT COLLEGES GRADUATE SCHOOLS OR WORKTRAINING PROGRAMS FOR STUDENTS WHO HAVE GRADUATED IT WOULD BE USED TO REPAY LOANS STUDENTS WHO TAKE NATIONAL SERVICE JOBS ALSO WOULD RECEIVE A MINIMUMWAGE STIPEND FOR WORKING IN EDUCATION HUMAN SERVICE ENVIRONMENT OR PUBLICSAFETY PROGRAMS SOME LAWMAKERS OBJECT TO THE STIPENDS ARGUING THAT PEOPLE SHOULDN'T BE PAID TO DO VOLUNTEER WORK INSTEAD THEY WOULD LIKE SCHOOLS TO ENCOURAGE STUDENTS TO VOLUNTEER BY EXPANDING THEIR REGULAR CURRICULUM TO INCLUDE SERVICE PROJECTS 9305030037 930503 BUSINESS BRIEF WORTHEN BANKING CORP FIRM AND UNION OF ARKANSAS SEEK TO EXTEND MERGER PACT WORTHEN BANKING CORP IN LITTLE ROCK ARK SAID IT IS NEGOTIATING WITH UNION OF ARKANSAS CORP TO EXTEND THEIR MERGER AGREEMENT WHICH EXPIRED MARCH 31 AS PREVIOUSLY REPORTED THE FEDERAL RESERVE BOARD OF GOVERNORS APPROVED THE MERGER ON MARCH 30 AND AUTHORIZED WORTHEN AND UNION TO COMPLETE THE MERGER AS EARLY AS APRIL 30 CURT BRADBURY WORTHEN'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE BANKS HAVE BEEN ATTEMPTING TO NEGOTIATE THE EXTENSION SINCE THE AGREEMENT'S EXPIRATION DATE HE SAID UNDER THE TERMS OF THE FEDERAL RESERVE'S APPROVAL THE EXTENSION DATE WOULD NEED TO FALL BEFORE THE JUNE 30 DEADLINE THE FEDERAL RESERVE SET FOR THE MERGER'S COMPLETION MR BRADBURY WOULDN'T COMMENT ON WHY THE MERGER HASN'T BEEN COMPLETED WHEN WORTHEN ANNOUNCED THE FEDERAL RESERVE'S APPROVAL OF THE MERGER IT ALSO DISCLOSED THAT THE BOARD WAS INVESTIGATING ITS TIES TO ARKANSAS' STEPHENS FAMILY WHICH OWNS A 38 STAKE IN WORTHEN 9305030036 930503 SEAGRAM SETS DEAL IN MEXICO MEXICO CITY MEXICAN SOFT DRINK BOTTLER GRUPO EMBOTELLADOR DE MEXICO SA OR GEMEX SAID IT SIGNED A FRANCHISE CONTRACT WITH SEAGRAM & CO OF CANADA TO PRODUCE DISTRIBUTE AND SELL SEAGRAM'S LINE OF SOFT DRINKS THROUGHOUT MEXICO THE CONTRACT INCLUDES SEAGRAM'S GINGER ALE CLUB SODA AND TONIC WATER GEMEX WILL BEGIN OPERATIONS SOMETIME IN THE SECOND QUARTER THE COMPANY SAID NO OTHER DETAILS WERE GIVEN GEMEX HOLDS THE LARGEST PEPSICO INC FRANCHISE IN THE WORLD OUTSIDE THE US 9305030035 930503 WHO'S NEWS JLG INDUSTRIES FIRES GROVE AS CHAIRMAN AFTER COFOUNDER SOUGHT TO OUST BOARD BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL MCCONNELSBURG PA JOHN L GROVE WAS FIRED AS CHAIRMAN OF JLG INDUSTRIES INC AFTER TRYING TO OUST THE BOARD OF THE COMPANY WHICH HE COFOUNDED 24 YEARS AGO THE 72YEAROLD MR GROVE WHO HELPED PIONEER A HYDRAULICBASED SYSTEM OF BOOMS AND LIFTS FOR CONSTRUCTION WORKERS HAS BEEN INVOLVED IN A PROTRACTED DISPUTE WITH L DAVID BLACK THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER AND WITH CHARLES H DILLER JR ITS CHIEF FINANCIAL OFFICER THE DISPUTE WAS OVER HOW TO RETURN THE COMPANY TO PROFITABILITY WHETHER TO SERIOUSLY CONSIDER TAKEOVER BIDS AND HOW TOP OFFICERS SHOULD SHARE POWER UNDER JLG'S BYLAWS MR BLACK WILL NOW PERFORM THE DUTIES OF CHAIRMAN MR GROVE WHO WAS FIRED BY THE BOARD LATE THURSDAY REMAINS A DIRECTOR MR GROVE THE COMPANY'S LARGEST SHAREHOLDER WITH ABOUT 192 OF SHARES OUTSTANDING SAID IN A LAWSUIT FILED EARLIER ON THURSDAY IN PENNSYLVANIA STATE COURT THAT HE AND MESSRS BLACK AND DILLER HAVE BEEN ENGAGED IN A DISPUTE RELATING TO CORPORATE POLICIES THE COMPANY'S WILLINGNESS TO CONSIDER STRATEGIC ALTERNATIVES SUCH AS BEING ACQUIRED BY ANOTHER CORPORATION AND THE PROPER ROLE FOR THE COMPANY'S FOUNDER AND LARGEST SHAREHOLDER MR GROVE WASN'T AVAILABLE FOR INTERVIEWS BUT A SPOKESMAN SAID HE'S INCLINED TO GIVE ACQUISITION BIDS SERIOUS REVIEW MESSRS BLACK AND DILLER SAID ON FRIDAY THAT THEY THINK MR GROVE HAS A PERSONAL VENDETTA AGAINST THEM THEY SAID MR GROVE INDICATED AT A SPECIAL BOARD MEETING ON THURSDAY THAT HE WOULDN'T PRESS FOR THE BOARD'S OUSTER IF THEY WERE FIRED IT SEEMS TO BE A PERSONAL THING IN THAT HE SINGLED OUT MYSELF AND MR DILLER MR BLACK SAID ANALYSTS CREDIT MUCH OF JLG'S RECENT TURNAROUND TO MR BLACK 56 WHO HAS HALTED MANUFACTURING IN AUSTRALIA AND SCOTLAND AND REORGANIZED AND STREAMLINED JLG'S US PLANTS SINCE BEING HIRED BY MR GROVE 2 1/2 YEARS AGO AFTER TWO MONEYLOSING YEARS DURING THE RECESSIONFISCAL 1991 AND 1992THE COMPANY TURNED A PROFIT IN EACH OF THE LAST TWO QUARTERS LIAM BURKE AN ANALYST WITH FERRIS BAKER WATTS INC WHO HAS A BUY RATING ON JLG COMMON SHARES ESTIMATES JLG WILL EARN 60 CENTS A SHARE IN FISCAL 1993 ENDING JULY 30 COMPARED WITH A LOSS OF 85 CENTS A SHARE LAST YEAR MR BLACK DESCRIBED MR BURKE'S ESTIMATE AS CONSERVATIVE BY THE END OF THE FISCAL YEAR DEBT WILL BE TRIMMED TO 5 MILLION DOWN FROM 125 MILLION AT THE END OF FISCAL 1992 MR BLACK SAID MR GROVE HOWEVER BLAMES MR BLACK FOR THE TWO UNPROFITABLE YEARS NOTING IN THE LAWSUIT THAT THE COMPANY WAS PROFITABLE PRIOR TO MR BLACK'S ARRIVAL HE ALSO SAID THAT SEVERAL KEY EMPLOYEES HAVE LEFT THE COMPANY DURING MR BLACK'S TENURE AND THAT JLG'S DEALERS HAVE BECOME DISGRUNTLED HE ALLEGED THAT MESSRS BLACK AND DILLER HAVE INDUCED THE BOARD OF DIRECTORS TO DENY HIM ANY ROLE WHATSOEVER IN MANAGEMENT MR DILLER RESPONDED YEAH THERE WERE TWO LOSS YEARS BUT WE WERE IN THE MIDST OF A RECESSION LIKE OTHER CAPITAL GOODS COMPANIES AS FOR MR GROVE'S OTHER CHARGES MR DILLER SAID EVERY COMPANY HAS EMPLOYEE TURNOVER HONESTLY WE DON'T HAVE ANY KNOWLEDGE OF ANY DISGRUNTLED DEALERS OVER AND ABOVE WHAT YOU'D NORMALLY HAVE THE DISPUTE BETWEEN MESSRS GROVE AND BLACK FLARED UP LAST JUNE WHEN A SPECIAL COMMITTEE OF OUTSIDE DIRECTORS UNANIMOUSLY DIRECTED MR GROVE TO REFRAIN FROM INTERFERING IN DAILY OPERATIONS AND MADE HIM NONEXECUTIVE CHAIRMAN IN EARLY APRIL MR GROVE TRIED TO CALL A SPECIAL BOARD MEETING TO PRESS FOR A SPECIAL SHAREHOLDERS MEETING TO OUST A MAJORITY OF THE BOARD DIRECTORS REFUSED TO ATTEND SAYING THEY DIDN'T HAVE ENOUGH NOTICE THEY LATER AGREED TO THE THURSDAY MEETING AT WHICH MR GROVE WAS FIRED BY ALL OTHER DIRECTORS INCLUDING PAUL K SHOCKEY WHO COFOUNDED JLG WITH HIM MR GROVE'S LAWSUIT SEEKS A PERMANENT INJUNCTION ORDERING THE BOARD TO CALL A SPECIAL SHAREHOLDERS MEETING 9305030034 930503 COMMODITIES AS NATURALGAS PRICES SOAR MANY ANALYSTS SAY 7YEAR SUPPLY GLUT BEARISH MARKET MAY BE OVER BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON WHAT'S SO DIFFERENT ABOUT THIS YEAR'S NATURALGAS MARKET DEMAND MAY BE UP A LITTLE BIT BUT NOT BY MUCH NOBODY REPORTS ANY SHORTAGES SO SUPPLIES MUST BE KEEPING UP IN FACT WINTER IS OVER SO GAS DEMAND FROM HOMEOWNERS WHICH DROPS BY MORE THAN HALF BETWEEN JANUARY AND MAY AS THE WEATHER WARMS UP SHOULD BE PLUNGING AND TAKING PRICES DOWN WITH IT JUST LIKE IT DID LAST YEAR AND IN YEARS BEFORE THERE IS ONE CRUCIAL DIFFERENCE THIS YEAR HOWEVER PRICES HAVE SOARED AND STAYED WELL ABOVE 2 PER THOUSAND CUBIC FEET AND ARE CURRENTLY AN ASTOUNDING 68 HIGHER THAN THEY WERE IN THE SPRING OF 1992 IF OIL HAD THE SAME YEARTOYEAR JUMP IT WOULD CURRENTLY BE SELLING FOR MORE THAN 33 A BARREL GOLD WOULD TRADE ABOVE 560 AN OUNCE MANY GAS INDUSTRY EXECUTIVES ARE AT A LOSS TO PINPOINT EXACTLY WHAT GIVES IT'S A VERY STRANGE MARKET AND THERE ARE A LOT OF PEOPLE BAMBOOZLED BY THIS WHOLE THING SAYS BRIAN HABACIVCH MANAGER OF THE NATURAL GAS DIVISION OF SPRAGUE ENERGY CORP IN PORTSMOUTH NH THEY DON'T UNDERSTAND IT NONETHELESS A GROWING NUMBER OF GAS EXPERTS ARE CAUTIOUSLY NERVOUSLY AND ANXIOUSLY PREDICTING THAT MORE THAN SEVEN YEARS OF A GAS SUPPLY GLUT AND BEARISH MARKET PERCEPTIONS THAT AS RECENTLY AS FEBRUARY 1992 SENT PRICES TUMBLING BELOW 1 PER THOUSAND CUBIC FEET MAY BE OVER I PINCH MYSELF EVERY DAY BUT I REALLY DO THINK WE'VE TURNED THE CORNER SAYS PAUL LEIBMAN AN ENERGY ANALYST AT PETRIE PARKMAN & CO IN DENVER WHILE HE THINKS PRICES WILL FALL SOME MORE FROM TODAY'S LEVELS AND CERTAINLY FROM THE RECORD 280 PER MILLION BRITISH THERMAL UNITS ROUGHLY EQUIVALENT TO ONE THOUSAND CUBIC FEET HIT ON THE NEW YORK MERCANTILE EXCHANGE LAST MONTH HE FORECASTS AVERAGE 1993 PRICES OF 2 THE PREDICTION SEES AN AVERAGE PRICE OF 2 IN THE CURRENT QUARTER 190 IN THE THIRD AND 225 IN THE COLDER FOURTH THE JUNE CONTRACT ON THE MERC SETTLED AT 2365 PER MILLION BTUS DOWN 07 CENT MR LEIBMAN EXPLAINS HIS BULLISH DEMEANOR THROUGH A SERIES OF SNOWBALLING EVENTS THAT BEGAN LAST WINTER UNLIKE THE PREVIOUS FOUR OR FIVE YEARS LAST WINTER WAS COLD AND STAYED THAT WAY THROUGH MARCH A LATESEASON BLIZZARD IN THE NORTHEAST PUNCTUATED THE ALREADY FREEZING TEMPERATURES CAUSING A LATERTHANUSUAL SURGE IN DEMAND THAT IN TURN CAUSED GAS PIPELINES UTILITIES AND OTHER GAS USERS TO DRAW MORE GAS THAN USUAL OUT OF STORAGE FIELDS THAT IN PAST YEARS THEY BEGAN REFILLING BY MARCH IN ADDITION GAS PRODUCERS WERE GETTING MORE CALLS THAN USUAL FOR QUICK DELIVERIES OF GAS AND DIDN'T ALWAYS HAVE ENOUGH GAS TO SELL BOTH THOSE FACTORS DROVE UP PRICES AND BEGAN TO CONVINCE MORE MARKET PLAYERS THAT SUPPLIES WERE TIGHT BASED ON PRELIMINARY DATA FROM THE ENERGY INFORMATION ADMINISTRATION GAS IN STORAGE TOTALED ABOUT 152 TRILLION CUBIC FEET AT THE END OF FEBRUARY 17 BELOW A YEAR EARLIER AS A RESULT MR LEIBMAN SAYS THE GAS INDUSTRY WILL HAVE A HARD TIME REFILLING THE UNDERGROUND INVENTORY TO ADEQUATE LEVELS BY EARLY NOVEMBER WHEN THE WINTER HEATING SEASON BEGINS HE FIGURES THAT BEGINNING NOW THE INDUSTRY WILL HAVE TO BUY AN EXTRA 15 BILLION CUBIC FEET OF GAS DAILY TO FILL STORAGE FIELDS COMPARED WITH LAST YEAR WHILE THAT EXTRA GAS REPRESENTS ONLY 27 BEYOND NORMAL DEMAND HE SAYS KEEP IN MIND THAT IN A MARKET WHERE YOU'VE GOT A MUCH CLOSER BALANCE BETWEEN SUPPLY AND DEMAND 27 CAN BE A LOT BEYOND THESE SHORTRUN REASONS THAT HELP EXPLAIN GAS'S CONTINUED AND UNUSUAL PRICE STRENGTH ARE UNDERLYING FACTORS THAT HAVE BEEN TRUE FOR MANY YEARS NOW IT SEEMS MORE PEOPLE BELIEVE THEM DOMESTIC DRILLING FOR NEW GAS RESERVES IN THIS COUNTRY HAS DECLINED RAPIDLY SINCE 1990 SAYS MICHAEL STEINBERG OF STEINBERG ASSET MANAGEMENT CO IN NEW YORK SO THE ABILITY TO PRODUCE AND DELIVER GAS IS SHRINKING AT THE SAME TIME HE NOTES DEMAND FOR GAS IS STEADILY RISING AND WILL GET FURTHER BOOSTS IN THE 1990S FROM THE CLEAN AIR ACT AND OTHER INITIATIVES OUT OF WASHINGTON TO MR STEINBERG AND SOME GAS BUYERS THE PAST FEW MONTHS ARE EVIDENCE THAT SUPPLIES FINALLY HAVE TIGHTENED WHEN YOU GOT TO THIS SPRING BUT THE PRICE DIDN'T GO DOWN AS IT HAS HISTORICALLY PEOPLE FELT SOMETHING WAS DIFFERENT HE SAYS THERE'S A NEW EQUILIBRIUM PRICE ESTABLISHING ITSELF FOR GAS BELIEVES MR HABACIVCH OF SPRAGUE ENERGY WE'RE NOT REPLACING THE RESERVES FAST ENOUGH AND WE'RE NOT DRILLING FAST ENOUGH HE SAYS WHILE GULF OF MEXICO GAS DRILLING IS UP SHARPLY FROM LAST YEAR THE NATION'S BIGGEST OIL AND GAS COMPANIES AREN'T RUSHING TO DRILL FOR NEW RESERVES YET AND DON'T SEEM CONVINCED THE PRICE RISE IS PERMANENT AFTER EXXON CORP'S ANNUAL MEETING LAST WEEK THE COMPANY'S NEW CHAIRMAN LEE RAYMOND SAID IT WOULD BE A LITTLE QUICK TO CONCLUDE THAT BECAUSE OF THE CURRENT MARKET IN GAS PRICES THAT WE'RE GOING TO GO THROUGH A MAJOR SHIFT H LAURANCE FULLER CHAIRMAN OF AMOCO CORP THE BIGGEST GAS RESERVE HOLDER IN NORTH AMERICA SAID LAST MONTH I'D LIKE TO SEE A FEW MONTHS OR A YEAR BEFORE I BECOME OVERLY OPTIMISTIC MR FULLER SAID AMOCO WILL REMAIN CONSERVATIVE ON GASPRICE FORECASTS AND DOESN'T PLAN TO SUBSTANTIALLY DEVELOP NEW RESERVES UNTIL PRICES STAY ABOVE 225 TO 250 FOR SOME TIME WE'RE NOT YET AT THE POINT WHERE WE'RE GOING TO TURN UP THE SPIGOT ON GAS DEVELOPMENT LOOKING AHEAD TO OTHER COMMODITY MARKETS THIS WEEK GRAINS AND SOYBEANS THE CORN PLANTING SEASON HAS GOTTEN OFF TO ITS SLOWEST START SINCE 1983 BECAUSE AN UNUSUALLY RAINY SPRING IS MAKING MIDWEST FIELDS TOO MUDDY FOR FARM EQUIPMENT ANALYSTS ESTIMATE THAT ONLY 10 OF THE MIDWEST CORN CROP WAS PLANTED BY THE WEEKEND COMPARED WITH THE FIVEYEAR AVERAGE OF 22 BY MAY 1 A WEATHERDELAYED PLANTING SEASON TENDS TO SUPPORT CORN PRICES BECAUSE IT FORCES FARMERS TO SHIFT TO QUICKERMATURING AND LOWER YIELDING VARITIES ANALYSTS ARE SPECULATING THAT SOME MIDWEST FARMERS WILL SHIFT TO THESE VARIETIES IF THE WET WEATHER DOESN'T BREAK BY MIDMAY MANY FARMERS RUN OUT OF TIME TO PLANT CORN BY THE BEGINNING OF JUNE THERE'S STILL TIME THEN TO PLANT SOYBEANS BUT SWITCHING TO ANOTHER CROP IS FINANCIALLY DIFFICULT FOR THE FARMERS ENROLLED IN THE GOVERNMENT'S CORN PRICE SUPPORT PROGRAM THESE FARMERS WOULD HAVE TO RETURN THE ADVANCE PAYMENTS THEY RECEIVED FOR ENROLLING IN THE PROGRAM SOYBEANS AREN'T PART OF A PRICE SUPPORT PROGRAM BEFORE THE RAIN DELAY BEGAN FARMERS WERE PROJECTED TO PLANT 763 MILLION ACRES OF CORN 9305030033 930503 NATIONAL BANK OF HUNGARY RATE FRANKFURT THE NATIONAL BANK OF HUNGARY LOWERED ITS BASE RATE TO 19 FROM 20 AS OF TODAY ACCORDING TO THE MTIECONEWS AGENCY THE NATIONAL BANK LAST REDUCED THE BASE RATE TO 20 FROM 21 ON JAN 1 THE BASE RATE IS USED BY THE NATIONAL BANK TO CALCULATE A RANGE OF MARKET RATES WHICH THE NATIONAL BANK SAID IT WOULD REDUCE IN LINE WITH ITS POLICY OF ADJUSTING INTEREST RATES TO MEDIUMTERM YIELDS ON THE CAPITAL MARKET 9305030032 930503 PEPPERAND SALT IF NO ONE'S BROKEN INTO MY CAR CHAPERONE A BEAU CONSTRICTOR 9305030031 930503 OTC FOCUS BUYING SMALL STOCKS NOW CHOICE IS GROWTH OR VALUE BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STICK WITH WHAT'S HOT OR BET ON WHAT'S NOT THAT'S THE CRITICAL ISSUE FOR SMALLCOMPANY STOCK INVESTORS DESPITE A 297POINT GAIN ON FRIDAY THE NASDAQ COMPOSITE INDEX IS DOWN 23 TO 66142 THIS YEAR SUGGESTING THAT NOW MAY BE A GOOD TIME TO DO SOME BARGAINHUNTING INDEED MANY EXPERTS PREDICT SMALLCOMPANY STOCKS WILL OUTPERFORM LARGERCOMPANY SHARES OVER THE NEXT FEW YEARS BUT WHICH STOCKS SHOULD YOU BUY AS ANALYSTS AND MONEY MANAGERS ARE QUICK TO NOTE THERE ARE BIG DIFFERENCES AMONG SMALL STOCKS AND A LOT OF HEATED DEBATE ABOUT WHICH ONES WILL DO BETTER IN THE MONTHS AHEAD SOME EXPERTS FAVOR VALUE STOCKS WHOSE SHARE PRICES ARE CHEAP COMPARED WITH THEIR CURRENT EARNINGS THESE HAVE BEEN THE MARKET'S HEROES SO FAR THIS YEAR EASILY OUTPACING THE STOCKS OF GROWTH COMPANIES THOSE THAT ARE EXPECTED TO HAVE RAPIDLY INCREASING PROFITS THE WILSHIRE SMALL VALUE INDEX HAS CLIMBED 6 THIS YEAR WHILE THE WILSHIRE SMALL GROWTH INDEX HAS TUMBLED 3 YET OTHERS SAY IT'S TIME TO START BUYING THE BADLY BEATEN GROWTH STOCKS WHICH COULD HAVE A STRONG COMEBACK IN THE SECOND HALF THEY NOW CALL THESE ISSUES WHICH HAVE REACHED VERY LOW PRICE LEVELS THE NEW VALUE STOCKS AS A WHOLE VALUE STOCKS WILL DO BETTER THAN GROWTH SAYS PETER CANELO CHIEF MARKET STRATEGIST AT NATWEST SECURITIES BUT YOU WILL HAVE SOME OF THE BEST PERFORMANCE IN PARTICULAR REBOUNDING GROWTH STOCKS THAT WILL DO BETTER THAN THE AVERAGE VALUE STOCK MR CANELO SAYS THAT INVESTORS DON'T NEED TO MAKE ANY HASTY DECISIONS ABOUT WHICH STOCKS TO BUY HE THINKS THE NASDAQ MARKET COULD BOTTOM SOME TIME BETWEEN NOW AND THE SUMMER WITH THE NASDAQ COMPOSITE INDEX FALLING BELOW 625 THAT WOULD BE A FALL OF AT LEAST 55 FROM FRIDAY'S LEVEL SMALLER STOCKS WILL THEN RALLY IN THE SECOND HALF OF THE YEAR MR CANELO BELIEVES ONCE THE MARKET STARTS MOVING UP AGAIN VALUE STOCKS ARE LIKELY TO LEAD THE WAY SAYS CLAUDIA MOTT A MARKET STRATEGIST WITH PRUDENTIAL SECURITIES STICK WITH WHAT I CALL THE MORE VALUEORIENTED UNIVERSE FINANCIALS UTILITIES BASIC INDUSTRIES IN ECONOMICALLY SENSITIVE AREAS SHE SAYS THE OUTLOOK FOR THE GROWTH SECTORS ISN'T THAT ATTRACTIVE MS MOTT RECOMMENDS ADVANTA A SERVICER OF CREDIT CARDS AND HOME EQUITY LOANS THE COMPANY EARNED 67 CENTS A SHARE FOR ITS FIRST QUARTER A 72 LEAP FROM 39 CENTS A YEAR EARLIER SHARES OF THE HORSHAM PA COMPANY EASED 7/8 TO 37 3/8 ON FRIDAY 14 TIMES WALL STREET'S EARNINGS ESTIMATE OF 265 A SHARE FOR THIS YEAR STEEL TECHNOLOGIES WHICH CLOSED UP 1/2 TO 21 1/4 ON FRIDAY IS ANOTHER ATTRACTIVE VALUE STOCK SHE SAYS THE LOUISVILLE KY COMPANY REPORTED EARNINGS OF 33 CENTS A SHARE FOR ITS FISCAL SECOND QUARTER ENDED MARCH 31 NOT ADJUSTED FOR A RECENT ANNOUNCEMENT OF A 3FOR2 STOCK SPLIT LAST YEAR THE COMPANY REPORTED 16 CENTS A SHARE FOR THE SAME PERIOD STEEL TECHNOLOGIES PROCESSES FLATROLLED STEEL MEANWHILE MS MOTT IS STEERING CLEAR OF MOST GROWTH STOCKS ARGUING THAT THERE ARE STILL MANY UNCERTAINTIES IN SEVERAL GROWTH SECTORS SHE SAYS IT IS UNCLEAR FOR INSTANCE WHETHER THE WEAK FIRSTQUARTER EARNINGS FOR RETAILERS AND CONSUMER SERVICES BUSINESSES WAS THE RESULT OF POOR WEATHER OR MORE FUNDAMENTAL PROBLEMS MS MOTT CONCEDES THAT THERE IS A GOOD CASE THAT THE SELLOFF AMONG MEDICALRELATED STOCKS IS OVERDONE BUT SHE ARGUES THERE IS STILL TOO MUCH UNCERTAINTY ABOUT HOW PRESIDENT CLINTON'S HEALTHCARE PLAN WILL AFFECT THE BOTTOM LINE OF THESE COMPANIES ROBERT D'ALELIO A SMALLCOMPANY MANAGER WITH PUTNAM INVESTMENTS IN BOSTON ALSO LEANS TOWARD VALUE STOCKS HE GENERALLY LOOKS FOR DIVIDENDPAYING COMPANIES THAT TRADE AT A LOW MULTIPLE OF EARNINGS AND THAT HAVE AN EARNINGS GROWTH RATE OF 10 TO 15 HE IS ESPECIALLY KEEN ON INSURANCE STOCKS RIGHT NOW INSURANCE STOCKS MIGHT NOT BE ON THE BARGAIN COUNTER BUT THEY ARE STILL REASONABLE MR D'ALELIO SAYS HE LIKES TRENWICK GROUP A SMALL REINSURANCE COMPANY THAT HAS THE ABILITY TO WRITE FOUR TIMES THE PREMIUMS THEY ARE NOW WRITING THE STOCK NOW AT 46 3/4 IS TRADING AT 16 TIMES THIS YEAR'S CONSENSUS EARNINGS ESTIMATE OF 295 A SHARE BUT MR D'ALELIO THINKS THE STAMFORD CONN COMPANY COULD EARN AS MUCH AS 340 THIS YEAR TRENWICK REPORTED FIRSTQUARTER EARNINGS OF 93 CENTS BEFORE ADJUSTMENTS UP FROM 73 CENTS A YEAR AGO BUT WHILE VALUE STOCKS MAY BE THE SAFE BET SOME ANALYSTS BELIEVE THERE ARE TREMENDOUS GAINS TO BE MADE FROM THE POTENTIAL REBOUND IN SOME BATTERED GROWTH STOCKS THE SAME SECTORS THAT HAVE SUNK THE NASDAQ MARKET ARE THE ONES THAT COULD BOUNCE BACK THE MOST IN THE SECOND HALF OF THIS YEAR THESE EXPERTS SAY FROM HERE ON THREE CATEGORIES HAVE A GREAT CHANCE OF OUTPERFORMING MR CANELO SAYS THEY HAVE BEEN DEVASTATED ALREADY AND DESERVE A REBOUND THE THREE SECTORS RETAILERS COMPUTER TECHNOLOGY AND BIOTECHNOLOGY AND MEDICAL INSTRUMENTATION GROWTH STOCKS MAY ALSO HAVE HISTORY ON THEIR SIDE IN A LOT OF WAYS 1993 IS A REPLAY OF 1992 PARTICULARLY FOR THE SMALL GROWTHSTOCK SEGMENT OF THE MARKET SAYS JOHN LAPORTE MANAGER OF T ROWE PRICE NEW HORIZONS FUND GROWTH STOCKS PEAKED IN FEBRUARY THIS YEAR LIKE LAST YEAR AND THEY WILL PROBABLY REBOUND THE FURTHEST IN THE FOURTH QUARTER AS THEY DID LAST YEAR MR LAPORTE SAYS THE RECENT TUMBLE IN TECHNOLOGY SHARES IS A SEASONAL MOVEMENT THAT WILL REVERSE IN THE FALL AS A RESULT HE SAYS NOW IS A GOOD TIME TO SNAP UP SOME OF THESE STOCKS MR LAPORTE LIKES SUNGARD DATA SYSTEMS WHICH CLOSED FRIDAY AT 29 HE SAYS THE COMPUTER SERVICES COMPANY SHOULD EARN 180 A SHARE THIS YEAR SUNGARD WHICH IS BASED IN WAYNE PA REPORTED FIRSTQUARTER EARNINGS OF 59 CENTS A SHARE UP FROM 36 CENTS A YEAR EARLIER KURT FEUERMAN A MORGAN STANLEY ANALYST FOR EMERGING GROWTH HAS ALSO BECOME BULLISH AS PRICES HAVE DROPPED HIS RECOMMENDED CASH POSITION WHICH STOOD AT 22 IN FEBRUARY IS NOW AT 14 I HOPE TO BRING MY CASH POSITION DOWN TO ZERO IN THE NEXT MONTH OR TWO MR FEUERMAN SAYS DON'T LET THE THREE OR FOUR MONTHS OF DEPRESSED PRICES HOLD YOU BACK STRONG BUYING IN BANK INSURANCE AND TRANSPORTATION STOCKS LIFTED THE OVERTHECOUNTER MARKET THE NASDAQ COMPOSITE INDEX ROSE 297 OR 045 TO 66142 ADVANCING ISSUES OUTNUMBERED DECLINERS 1547 TO 1062 ON TOTAL VOLUME OF 2267 MILLION SHARES TECHNOLOGY STOCKS WERE MIXED APPLE COMPUTER EDGED UP 1/2 TO 51 1/4 INTEL SLIPPED 5/8 TO 95 1/8 AND NOVELL ROSE 3/4 TO 30 LIN BROADCASTING JUMPED 1 3/4 TO 89 PRUDENTIAL SECURITIES UPGRADED THE STOCK TO BUY FROM SELL 9305030030 930503 FOREIGN EXCHANGE PRESSURED CANADIAN DOLLAR NOW FACES MIDMAY HURDLE OF ONTARIO'S BUDGET BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK AFTER RECOVERING FROM LAST WEEK'S TUMBLE ON CANADA'S FEDERAL BUDGET ANNOUNCEMENT THE CANADIAN DOLLAR FACES ANOTHER HURDLE THE MIDMAY ANNOUNCEMENT OF THE BUDGET FOR THE PROVINCE OF ONTARIO THE CANADIAN CURRENCY IS EXPECTED TO REMAIN UNDER PRESSURE UNTIL THE ONTARIO ANNOUNCEMENT BECAUSE OF UNCERTAINTY ABOUT THE PROVINCE'S CREDIT OUTLOOK TRADERS AND ANALYSTS SAY THE PROVINCE'S DEBT ALREADY CARRIES A NEGATIVE OUTLOOK ON ITS DOUBLEA RATING FROM STANDARD & POOR'S CORP AND TRADERS RECALL THAT ITS BUDGET TWO YEARS AGO LADEN WITH NEW SPENDING PRODUCED A DEFICIT AND TWO RATING DOWNGRADES MARKET PLAYERS AREN'T GEARING UP FOR AN ASSAULT ON THE CANADIAN DOLLAR BUT YOU WILL NOT SEE ANYONE GET EXCITED ABOUT EXTENDING CANADIAN DOLLAR POSITIONS RIGHT NOW SAYS RICHARD VULLO SENIOR MARKETING REPRESENTATIVE AT THE BANK OF MONTREAL IN NEW YORK INSTEAD TRADERS EXPECT THE CURRENCY TO TEST LAST WEEK'S LOW OF C12815 TO THE US DOLLAR LATE FRIDAY IN NEW YORK US DOLLARS TRADED AT C12709 COMPARED WITH C12617 AT THE END OF THE PREVIOUS WEEK IN LATE NEW YORK TRADING FRIDAY THE DOLLAR WAS ALSO QUOTED AT 15850 MARKS UP FROM 15790 MARKS LATE THURSDAY AND 11115 YEN UP SLIGHTLY FROM 111 YEN TOKYO'S FINANCIAL MARKETS WERE CLOSED MONDAY FOR A NATIONAL HOLIDAY THE CANADIAN CURRENCY'S QUICK RECOVERY LAST WEEK LEADS MANY TO BELIEVE IT WILL HOLD ITS GROUND NEAR LAST WEEK'S LOWS DISAPPOINTMENT OVER THE FEDERAL BUDGET WHICH GENERATED A DOWNGRADE OF FEDERAL DEBT BY THE MONTREALBASED CANADIAN BOND RATING SERVICE DROVE THE CANADIAN DOLLAR TO ITS LOWEST LEVEL SINCE LATE JANUARY WEAKNESS IN BONDS HURTS THE CURRENCY BECAUSE IT DISCOURAGES BUYING BY FOREIGN INVESTORS WHO HAVE LESS NEED FOR CANADIAN DOLLARS AS A RESULT THE REBOUND CAME AS MARKET PLAYERS DIGESTED BUDGET DETAILS AND AS S&P AND MOODY'S INVESTORS SERVICE INC ANNOUNCED THAT THEY WOULD MAINTAIN THEIR RATINGS ON CANADA'S DEBT THERE HAS BEEN CLEARER THINKING ABOUT THE BUDGET SAYS ANITA LAURIA AN ECONOMIST AT SALOMON BROTHERS INC ALTHOUGH SHE CONSIDERS THE BUDGET'S PROJECTIONS FOR ECONOMIC GROWTH SEVERAL YEARS DOWN THE ROAD TO BE UNREALISTIC SHE SAYS THE BUDGET ALSO CONTAINS TOUGH LIMITS ON SPENDING THEY CAN GET DEFICIT REDUCTION WITH THESE SPENDING PROJECTIONS SHE SAYS MS LAURIA SAYS THE REACTION TO THE ONTARIO BUDGET WILL DEPEND ON THE SIZE OF ITS OWN DEFICIT WHICH NOW STANDS AT ABOUT C12 BILLION US943 BILLION AS LONG AS ONTARIO KEEPS ITS PROMISE OF A DEFICIT UNDER C10 BILLION IN 19931994 IT WILL BE NEUTRAL FOR THE MARKET MS LAURIA SAYS ANYTHING BIGGER THAN C10 BILLION WILL BE A NEGATIVE TRADERS' NERVOUSNESS ABOUT THE CANADIAN DOLLAR'S PROSPECTS SHOWS UP IN OPTIONS TRADING WHERE DEALERS INSURE THEMSELVES AGAINST LOSSES ON THEIR CURRENCY POSITIONS OPTIONS ARE COMMANDING A HIGHER PRICE THAN USUAL NOTES MR VULLO OF BANK OF MONTREAL AND PUT OPTIONS ON CANADIAN DOLLARS WHICH RISE IN VALUE AS THE CURRENCY DECLINES ARE IN GREATER DEMAND THAN CALL OPTIONS WHICH BECOME PROFITABLE IF THE CURRENCY RISES WHILE TRADERS TEST THE CURRENCY'S RECENT LOWS LONGERTERM INVESTORS ARE LIKELY TO REMAIN CAUTIOUS TRADERS SAY NOT ONLY ARE BUDGET CONCERNS LOOMING BUT THERE IS A MEASURE OF POLITICAL UNCERTAINTY AS WELL CANADA'S RULING PROGRESSIVE CONSERVATIVE PARTY WILL HOLD A CONVENTION JUNE 13 TO SELECT A SUCCESSOR TO PRIME MINISTER BRIAN MULRONEY THE SUCCESSOR WILL SERVE UNTIL NATIONAL ELECTIONS ARE HELD NO LATER THAN NOVEMBER LONGTERM OVERSEAS INVESTORS PREFER THE SIDELINES IN LIGHT OF DEBTRATING AND POLITICAL CONCERNS SAYS JERRY CORNILLE MARKETING DIRECTOR AT CM&M FUTURES INC CHICAGO THE FUTURES DIVISION OF CARROLL MCENTEE & MCGINLEY INC EVEN BULLISH PLAYERS DOUBT INVESTORS WILL BE TEMPTED TO BET ON THE CANADIAN DOLLAR IN DROVES ROBERT STEIN PRESIDENT OF COMMODITY TRADING ADVISORY FIRM TREBOR FINANCIAL INC BELIEVES LAST WEEK'S REBOUND PROVES THE CANADIAN DOLLAR'S FIRMNESS HIGHER YIELDS MAKE IT ATTRACTIVE BY COMPARISON TO US DOLLARS HE SAYS BUT NOT BY COMPARISON TO EUROPEAN CURRENCIES FROM A FUND MANAGER'S POINT OF VIEW WHAT YOU'D INVEST COULD BE BETTER UTILIZED BUYING MARKS OR SWISS FRANCS HE SAYS 9305030029 930503 LAW LEGAL BEAT ARIZONA'S CIVIL RACKETEERING LAW IS SCALED BACK LIMITING DAMAGES BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL ARIZONA HAS SHARPLY SCALED BACK ITS FORMIDABLE CIVIL RACKETEERING LAW AFTER HEAVY LOBBYING BY ATTORNEYS BANKS REALESTATE OPERATORS AND ACCOUNTANTS SOME OF WHOM SERVED FIRMS THAT HAVE BEEN ITS TARGETS THE CHANGES IN THE ARIZONA LAW UNTIL NOW REGARDED AS THE TOUGHEST RACKETEERING STATUTE IN THE NATION ARE EXPECTED TO SHARPLY LIMIT DAMAGES THAT AGGRIEVED INVESTORS AND OTHER PLAINTIFFS MAY RECEIVE THE LEGISLATION ALSO CHANGES THE GROUND RULES FOR SEEKING THOSE DAMAGES THE SIGNING OF THE BILL WAS ANNOUNCED IN PHOENIX LAST WEEK BY GOV FIFE SYMINGTON WHO IS A DEFENDANT IN A SUIT FILED UNDER THE STATE LAW BY THE RESOLUTION TRUST CORP THE FEDERAL THRIFT CLEANUP AGENCY THE NEW LAW WON'T HELP THE GOVERNOR IN THAT SUIT IN WHICH THE RTC IS SEEKING DAMAGES FROM FORMER OFFICERS AND DIRECTORS OF THE FAILED SOUTHWEST SAVINGS & LOAN ASSOCIATION IN PHOENIX BECAUSE THE MEASURE WILL ONLY AFFECT SUITS FILED 90 DAYS AFTER ENACTMENT BUT ADDITIONAL RACKETEERING SUITS INVOLVING SOUTHWEST OR OTHER S&LS ARE POSSIBLE SO FAR HALF A DOZEN RTC OR PRIVATE RACKETEERING SUITS RELATED TO FAILED THRIFTS HAVE BEEN FILED IN THE STATE PLAINTIFFS LAWYERS AND OTHERS ARGUE THAT THE REVISIONS HAVE GUTTED THE LAW THE ARIZONA STATUTE WAS MUCH FRIENDLIER TO PLAINTIFFS THAN THE FEDERAL RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS LAW OR RICO AS SUCH LAWS ARE KNOWN AND 29 OTHER STATE RACKETEERING STATUTES ALTHOUGH THE FEDERAL RICO LAW APPLIES IN ALL 50 STATES NOT ALL DISPUTES CAN BE BROUGHT IN FEDERAL COURT AND STATES MAY DIFFER ON HOW ENCOMPASSING RACKETEERING LAWS SHOULD BE CRITICS OF RACKETEERING LAWS ARGUE THAT THEY NEED TO BE SCALED BACK THE LAWS LARGELY WERE DESIGNED TO ATTACK ORGANIZED CRIME BUT HAVE BEEN WIDELY USED IN RECENT YEARS IN CASES INVOLVING BUSINESS FRAUD AND OTHER PRACTICES DEFENDANTS ALSO HAVE ASSAILED THE TRIPLE DAMAGE AWARDS THAT CAN BE AWARDED IN RICO CASES UNDER THE ARIZONA LAW MOST PLAINTIFFS AUTOMATICALLY RECEIVED TRIPLE THE ACTUAL DAMAGES DECIDED AT TRIAL BUT THE AMENDED LAW REQUIRES THAT A COURT DECIDE WHETHER THE INCREASED DAMAGES APPLY OPPONENTS OF THE REVISED LAW SAY THE CHANGES IN HOW TRIPLE DAMAGES ARE DECIDED WILL DISCOURAGE MANY RACKETEERING LAWSUITS THE ABSOLUTE HEART OF A RICO STATUTE IS MANDATORY TREBLE DAMAGES SAYS VAN BUNCH A PHOENIX ATTORNEY WHO REPRESENTS INVESTOR PLAINTIFFS ROBERT BLAKEY A PROFESSOR AT NOTRE DAME LAW SCHOOL WHO HELPED DRAFT THE FEDERAL RICO LAW AS WELL AS MANY STATE LAWS INCLUDING ARIZONA'S SAYS ARIZONA ONCE LED THE NATION IN ITS IMAGINATIVE AND COURAGEOUS EFFORT TO PROTECT THE INTEGRITY OF THE MARKETPLACE BY ITS WELLCRAFTED RICO LEGISLATION BUT MR BLAKEY SAID THE CHANGES HAVE THE EFFECT OF REPEALING THE ARIZONA LAW HE CALLED THE LEGISLATION A CROOKED ACCOUNTANTS CROOKED LAWYERS RELIEF ACT AMONG OTHER CHANGES PUNITIVE AND EMOTIONAL DAMAGES NOW CAN BE AWARDED ONLY WHEN THERE IS BODILY INJURY AND AS WITH THE FEDERAL RACKETEERING LAW A PATTERN OF HARMFUL PRACTICES MUST BE SHOWN RATHER THAN JUST ONE EVENT THE REVISED LAW ALSO REQUIRES THAT PRIVATE SUITS BE FILED WITHIN THREE YEARS FROM WHEN PLAINTIFFS DISCOVER THE WRONGDOING INSTEAD OF THE PREVIOUS SEVEN YEARS AND WITHIN 10 YEARS OF WHEN THE WRONGDOING OCCURRED PROPONENTS OF THE CHANGES SAY THE OLD LAW WAS EXCESSIVE IN OTHER WAYS FOR INSTANCE EVEN UNINTENDED HARM IN SECURITIES TRANSACTIONS COULD AMOUNT TO A RACKETEERING OFFENSE FURTHERMORE THE THREAT OF A RICO SUIT UNDER THE OLD LAW PROMPTED MANY DEFENDANTS IN DIVORCE COLLECTIONS AND OTHER CASES TO SETTLE LITIGATION THEY OTHERWISE MIGHT HAVE FOUGHT IN COURT SAYS ROBERT FANNIN A PHOENIX LAWYER WHO HELPED LOBBY FOR THE AMENDMENTS THE REVISED LAW WAS NEEDED SO EVERY BUSINESS DISPUTE DIDN'T AUTOMATICALLY BECOME A RICO VIOLATION SAYS CHUCK BLANCHARD A STATE SENATOR WHO BACKED THE CHANGES BEFORE SAYS STATE REP SUSAN GERARD YOU WERE TAKING A GIANT LEAP FROM FRAUD AND MISREPRESENTATION TO ORGANIZED CRIME IT WAS ALMOST IMPOSSIBLE TO DO BUSINESS IN ARIZONA THE EFFORT TO SOFTEN THE ARIZONA LAW WAS MORE SUCCESSFUL THAN A 1989 ATTEMPT LED BY US SEN DENNIS DECONCINI TO WEAKEN FEDERAL RICO THE EFFORT BY THE ARIZONA DEMOCRAT FAILED AMID OPPONENTS' CHARGES THAT IT WAS BEING MADE ON BEHALF OF CHARLES KEATING'S LINCOLN SAVINGS & LOAN ASSOCIATION WHOSE COLLAPSE WAS COSTLY TO TAXPAYERS AND LED TO TWO MAJOR RICO SUITS AGAINST MR KEATING AND OTHERS SOME OF THOSE LOBBYING TO CHANGE THE ARIZONA LAW ARE AWARE OF ITS STING JACK HENRY PHOENIXOFFICE MANAGING PARTNER OF ACCOUNTING FIRM ARTHUR ANDERSEN & CO TESTIFIED FOR THE AMENDMENTS IN LEGISLATIVE HEARINGS ANDERSEN IS ONE OF SEVERAL FIRMS THAT SETTLED A MASSIVE PRIVATE RICO SUIT IN A KEATING SECURITIESFRAUD CASE MR HENRY ALSO IS INVOLVED IN AN ARTHUR ANDERSEN AGREEMENT FOR ARBITRATED SETTLEMENT OF POSSIBLE NONRICO CHARGES BY THE RTC ARTHUR ANDERSEN AGREED TO THAT SETTLEMENT UNDER THE THREAT OF BECOMING A DEFENDANT IN THE RTC'S ARIZONA RICO CASE OVER THE KEATING AFFAIR MR BUNCH THE PLAINTIFFS LAWYER SAYS MR HENRY'S ROLE SHOWS THAT PEOPLE WHO WERE ADVISING A COMPANY INVOLVED IN ONE OF THE BIGGEST SWINDLES IN ARIZONA HISTORY WERE SPEAKING IN FAVOR OF LEGISLATION THAT WOULD MAKE IT EASIER TO ENGAGE IN THE SWINDLE AGAIN MR HENRY SAID HE LOBBIED FOR THE CHANGES TO STEM THE DEEPPOCKET MENTALITY WHICH HE SAID PROVIDED TOO EASY A FORM OF EXTORTION FOR RICOMINDED PLAINTIFFS CONFESSIONS COERCED FROM WORKERS BY MANAGEMENT ARE INADMISSIBLE IN CRIMINAL CASES A KENTUCKY APPEALS COURT RULED THE KENTUCKY CASE INVOLVED A THEFT CONFESSION PRESSURED OUT OF ROBERT EDWARD COOPER BY HIS SUPERVISORS AT UNITED PARCEL SERVICE IN LOUISVILLE IN DECEMBER 1991 ACCORDING TO COURT PAPERS MR COOPER CONFESSED AFTER BEING HELD IN A WINDOWLESS ROOM DURING A TOTAL OF 55 MINUTES OF INTERROGATION MR COOPER WAS PROMISED THAT IN EXCHANGE FOR HIS CONFESSION UPS WOULDN'T BRING CHARGES AGAINST HIM LATER THE COMPANY RENEGED AND MR COOPER WAS CHARGED WITH THEFT THE US SUPREME COURT HAS RULED THAT POLICECOERCED CONFESSIONS VIOLATE A DEFENDANT'S CONSTITUTIONAL RIGHTS BUT UNDER FEDERAL LAW CONFESSIONS COERCED BY PRIVATE INDIVIDUALS CAN BE USED AS EVIDENCE IN COURT KENTUCKY PROSECUTORS ARGUED THAT THE STATE HAD ADOPTED THE FEDERAL STANDARD BUT A TRIAL JUDGE REJECTED THAT ARGUMENT AND RULED THAT THE CONFESSION COULDN'T BE USED AS EVIDENCE THE INTERMEDIATE APPEALS COURT UPHELD THE TRIAL JUDGE SAYING THAT CENTURYOLD OBSCURE COURT OPINIONS NOT STATE OR FEDERAL CONSTITUTIONAL LAW HELD THAT A CONFESSION INDUCED BY COERCIVE TECHNIQUES ISN'T ADMISSIBLE WHEN CONDUCTED BY COMPANY MANAGEMENT YALE KAMISAR A CRIMINALLAW SPECIALIST AT THE UNIVERSITY OF MICHIGAN SCHOOL OF LAW IN ANN ARBOR SAID THAT ALTHOUGH THERE ARE VERY VERY FEW CASES LIKE THE ONE IN KENTUCKY THE RULING IS SOUND BECAUSE SUCH CONFESSIONS ARE UNRELIABLE AND SHOULDN'T BE CONDONED BY THE COURTS THOMAS E SCHWIETZ A PARTNER WITH KEATS SCHWIETZ & O'DONNELL IN LOUISVILLE WHICH REPRESENTED MR COOPER SAID HE TURNED UP SIMILAR RULINGS BY COURTS IN MISSISSIPPI FLORIDA OHIO AND OREGON THE STATE PROSECUTOR IN LOUISVILLE COULDN'T BE REACHED FOR COMMENT NEW BERLIN OFFICE WASHINGTON LAW FIRM WILMER CUTLER & PICKERING OPENED AN OFFICE IN BERLIN MANFRED BALZ FORMER GENERAL COUNSEL OF THE GERMAN AGENCY OVERSEEING PRIVATIZATION IN EASTERN GERMANY WAS NAMED PARTNER IN CHARGE WILMER CUTLER SAID THE BERLIN OFFICE WHICH WILL HAVE SIX LAWYERS BY SEPTEMBER WILL BE A BASE FOR EXPANDING ITS GERMAN AND CENTRAL EUROPEAN PRACTICE MR BALZ'S FORMER AGENCY WILL BECOME A CLIENT THE 240LAWYER FIRM SAID JURYTRIAL REPRIEVE FEDERAL CIVIL JURY TRIALS WON'T HAVE TO BE SUSPENDED AS OF MAY 12 AFTER ALL THE ADMINISTRATIVE OFFICE OF THE US COURTS SAID IT HAS FOUND MORE FUNDS THAN EXPECTED TO PAY JURORS THE REQUIRED 40 A DAY BUT THE OFFICE WARNED THAT THE MONEY WILL LIKELY RUN OUT BY THE END OF JUNE IF CONGRESS DOESN'T APPROVE EMERGENCY FUNDS GAG ORDER LIFTED A FEDERAL APPEALS COURT IN NEW YORK LIFTED A GAG ORDER THAT PREVENTED ATTORNEYS INVOLVED IN THE WORLD TRADE CENTER BOMBING CASE FROM TALKING TO THE NEWS MEDIA THE SECOND US CIRCUIT COURT OF APPEALS RULED THAT THE RESTRICTIONS IMPOSED BY US DISTRICT JUDGE KEVIN T DUFFY WERE SO BROAD THAT THEY VIOLATED FREESPEECH RIGHTS CITADEL CHALLENGE THE JUSTICE DEPARTMENT PLANS TO JOIN A WOMAN'S LEGAL CHALLENGE TO THE CITADEL'S ALLMALE ADMISSIONS POLICY THE ASSOCIATED PRESS REPORTED AN ATTORNEY FOR THE DEPARTMENT SAID IT PLANS TO INTERVENE AS A PLAINTIFF IN THE SEXDISCRIMINATION SUIT AGAINST THE SOUTH CAROLINA MILITARY COLLEGE THE WOMAN WHO FILED THE SUIT INITIALLY WAS ADMITTED BUT THE COLLEGE REJECTED THE APPLICANT AFTER LEARNING SHE WAS A WOMAN ARTHUR S HAYES IN NEW YORK CONTRIBUTED TO THIS ARTICLE ARIZONA GOV FIFE SYMINGTON IS A DEFENDANT IN A SUIT FILED BY THE RESOLUTION TRUST CO UNDER FEDERAL SAVINGS AND LOAN CLEANUP LAW AS WELL AS COMMON LAW BASED ON INFORMATION FROM THE RTC YESTERDAY'S LEGAL BEAT COLUMN INCORRECTLY SAID THE SUIT WAS FILED UNDER THE STATE'S ANTIRACKETEERING LAW GOV SYMINGTON WAS NAMED IN THE SUIT AS A FORMER DIRECTOR OF THE FAILED SOUTHWEST SAVINGS & LOAN ASSOCIATION 9305030028 930503 BUSINESS BRIEF SHELL CANADA LTD UNIT TO BUY GAS STATIONS OF PAY LESS HOLDINGS INC SHELL CANADA LTD SAID ITS CRUDE OIL REFINING AND MARKETING UNIT PLANS TO ACQUIRE THE GASOLINE RETAILING OPERATIONS OF PAY LESS HOLDINGS INC A CLOSELY HELD CONCERN IN VICTORIA BRITISH COLUMBIA SHELL CANADA SAID THAT IT WILL ACQUIRE TWO UNITS OF PAY LESS PAY LESS GAS CO 1972 LTD AND CANADIAN TURBO INC PAY LESS HOLDINGS IN RETURN WILL ACQUIRE SHELL CANADA'S VICTORIABASED HEATING OIL BUSINESS SHELL CANADA OFFICIALS DIDN'T GIVE FURTHER DETAILS ON THE TERMS CONDITIONS OR VALUE OF THE TRANSACTION AND DECLINED TO SAY WHETHER ANY CASH WAS INVOLVED UNDER THE PROPOSED ACQUISITION SHELL WOULD ACQUIRE ABOUT 350 RETAIL GASOLINE STATIONS ACROSS WESTERN CANADA AND 35 BULK FUEL FACILITIES SHELL CANADA AN OIL AND GAS EXPLORATION PRODUCTION REFINING AND MARKETING CONCERN BASED IN CALGARY ALBERTA IS 78 OWNED BY ROYAL DUTCH/SHELL GROUP 9305030027 930503 WHO'S NEWS WALT DISNEY CO WALT DISNEY CO BURBANK CALIF MICHAEL MONTGOMERY WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF WALT DISNEY'S 49OWNED EURO DISNEY RESORT OUTSIDE PARIS MR MONTGOMERY PREVIOUSLY VICE PRESIDENT AND TREASURER OF DISNEY SUCCEEDS JOHN FORSGREN WHO WAS NAMED VICE CHAIRMAN 9305030026 930503 CANDELA LASER TAKES A 7 MILLION CHARGE POSTS LOSS FOR QUARTER WAYLAND MASS CANDELA LASER CORP IN AN APPARENT ATTEMPT TO CLEAN HOUSE UNDER NEW MANAGEMENT TOOK A 7 MILLION CHARGE AND REPORTED A 93 MILLION LOSS FOR THE FISCAL THIRD QUARTER ENDED APRIL 3 THE LOSS EQUAL TO 179 A SHARE COMPARES WITH NET INCOME OF 964000 OR 18 CENTS A SHARE IN THE YEAREARLIER QUARTER WHICH INCLUDED A TAXLOSS CARRYFORWARD GAIN OF 270000 OR FIVE CENTS A SHARE REVENUE FELL 26 TO 68 MILLION FROM 93 MILLION THE MAKER OF MEDICAL LASERS BLAMED THE REVENUE DECLINE ON STIFFER COMPETITION AND A PREFERENCE AMONG CUSTOMERS FOR LESS EXPENSIVE EQUIPMENT CANDELA'S LASER PRICES RANGE FROM 110000 TO 200000 CANDELA'S DIFFICULTIES BEGAN TO SURFACE IN THE FISCAL SECOND QUARTER WHEN ITS PROFIT PLUMMETED 97 DUE TO RELIABILITY PROBLEMS WITH ITS NEW TATOO REMOVING PLTL1 LASERS IN THE LATEST QUARTER THE COMPANY SET ASIDE 11 MILLION IN RESERVES TO COVER WARRANTY AND UPGRADE EXPENSES AS IT ATTEMPTS TO CORRECT SOME OF THOSE PROBLEMS CANDELA ALSO SAID IT DECIDED NOT TO CONTINUE DEVELOPING ITS PHOTOCOAGULATOR AS CLINICAL RESULTS SHOWED THE SYSTEM WOULD TAKE ABOUT FIVE YEARS BEFORE IT IS READY FOR MARKET ABOUT 23 MILLION OF ITS THIRDQUARTER CHARGE STEMS FROM THE WRITEOFF IN RELATED INVENTORY THE COMPANY ALSO SET ASIDE 1 MILLION TO COVER SEVERANCE AND EXPENSES RELATED TO THE RECENT RESIGNATION OF JOHN T PAVLIC AS PRESIDENT AND CHIEF EXECUTIVE MR PAVLIC WAS REPLACED BY GERARD PUORRO WHO HAD BEEN CHIEF FINANCIAL OFFICER CONTROLLER MICHAEL J GIARRATANO BECOMES CHIEF FINANCIAL OFFICER CANDELA'S NINEMONTH LOSS WAS 92 MILLION OR 178 A SHARE IN CONTRAST TO A PROFIT OF 22 MILLION OR 42 CENTS A SHARE AFTER A TAXRELATED BENEFIT OF 653000 OR 12 CENTS A SHARE REVENUE EDGED UP TO 256 MILLION FROM 255 MILLION A PRIORITY OF NEW MANAGEMENT IS TO RETURN TO PROFITABILITY AS SOON AS POSSIBLE SAID RICHARD OLSEN A COMPANY SPOKESMAN AS PART OF AN EFFORT TO CUT COSTS CANDELA SAID THAT IT DISMISSED 30 OF 225 WORKERS OR ABOUT 15 OF ITS STAFF 9305030024 930503 DIRECTORS REVOLT SWITCH ADVISER FOR SELECTED FUNDS BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN AN UNUSUAL DISPLAY OF INDEPENDENCE DIRECTORS OF THE SELECTED FUNDS GROUP OF MUTUAL FUNDS STAGED A REVOLT AGAINST ITS EXISTING MONEY MANAGEMENT FIRM AND VOTED TO HIRE A NEW ADVISER THE VOTE BY DIRECTORS OF THE FOUR SELECTED FUNDS LAST THURSDAY WAS A REBUFF FOR KEMPER CORP THE BIG FINANCIAL SERVICES COMPANY THAT HAD PLANNED TO SELL ITS SUBSIDIARY THAT MANAGED THE SELECTED FUNDS TO CONCORD HOLDING CORP INSTEAD THE SELECTED DIRECTORS TURNED MANAGEMENT OF THE FOUR SELECTED MUTUAL FUNDS WITH ASSETS OF 600 MILLION OVER TO VENTURE ADVISERS LP STARTING TODAY SELECTED FUNDS SAID VENTURE ALREADY MANAGES EIGHT MUTUAL FUNDS WITH ASSETS OF 11 BILLION WITH THE ADDITION OF THE SELECTED FUNDS VENTURE'S NAME WILL CHANGE TO SELECTED/VENTURE ADVISERS LP WHILE MUTUAL FUNDS ARE LEGALLY OWNED BY THEIR SHAREHOLDERS IN PRACTICE THEIR ACTIONS ARE FREQUENTLY DOMINATED BY THE MANAGEMENT COMPANIES THAT ARE HIRED TO RUN THEIR PORTFOLIOS VERY RARELY DO THE DIRECTORS SEIZE THE PROCESS AND PUT THEIR OWN ADVISER IN THERE SAID MARY PAT THORNTON AN INVESTMENT BANKER AT PUTNAM LOVELL INC FINAL APPROVAL OF VENTURE AS THE NEW ADVISER TO THE SELECTED FUNDS IS CONTINGENT ON A VOTE BY SHAREHOLDERS OF THE FUNDS THE SELECTED FUNDS HAVE BEEN IN TURMOIL SINCE THE DEPARTURE LAST YEAR OF DONALD YACKTMAN WHO MANAGED THE FLAGSHIP SELECTED AMERICAN SHARES FUND MR YACKTMAN HAD STEERED THE FUND TO ONE OF THE BEST PERFORMANCES IN THE FUND INDUSTRY IN HIS NEARLY 10 YEARS AS MANAGER BUT HE LEFT THE FUND IN A DISAGREEMENT WITH SELECTED FINANCIAL SERVICES THE KEMPER SUBSIDIARY THAT MANAGED THE SELECTED FUNDS HE SUBSEQUENTLY SET UP HIS OWN MUTUAL FUND AND MONEY MANAGEMENT FIRM FOLLOWING MR YACKTMAN'S DEPARTURE SHAREHOLDERS BEGAN TAKING THEIR MONEY OUT OF SELECTED DURING THE BIGGEST BOOM IN THE HISTORY OF THE MUTUAL FUND INDUSTRY THE ASSETS OF SELECTED AMERICAN SHARES FELL FROM 706 MILLION AT THE END OF 1991 TO 582 MILLION AT THE END OF 1992 DESPITE GAINS IN THE FUND'S PORTFOLIO IN HIRING VENTURE TO MANAGE THE FUNDS SELECTED IS TAPPING THE SERVICES OF ANOTHER NOTED STOCK PICKER SHELBY MC DAVIS WHO MANAGES NEW YORK VENTURE FUND FOR VENTURE ADVISERS WILL TAKE OVER MANAGEMENT OF THE TWO SELECTED STOCK FUNDS SELECTED SAID NEW YORK VENTURE TURNED IN THE NINTHBEST PERFORMANCE AMONG ALL MUTUAL FUNDS IN THE 10 YEARS THROUGH APRIL 29 ACCORDING TO LIPPER ANALYTICAL SERVICES INC THE FUND HAD AN ANNUAL TOTAL RETURN INCLUDING PRICE CHANGE AND REINVESTED DIVIDENDS OF 1655 IN THAT PERIOD THE VOTE BY THE BOARDS OF THE FOUR SELECTED FUNDS MARKS A SETBACK FOR KEMPER THE BIG CHICAGOBASED MONEY MANAGEMENT INSURANCE AND BROKERAGE FIRM IT NOW WON'T BE GETTING ANY COMPENSATION FOR THE DEPARTURE OF THE SELECTED FUNDS KEMPER WON'T GET ANY PAYMENT FROM VENTURE ACCORDING TO ROBERT GREENEBAUM CHAIRMAN OF THE BOARDS OF THE SELECTED FUNDS SELECTED FINANCIAL SERVICES BASED IN CHICAGO NO LONGER HAS ANY MUTUAL FUNDS TO MANAGE AND INTENDS TO DISCONTINUE OPERATIONS KEMPER SAID IN A PRESS RELEASE KEMPER CONTINUES TO MANAGE ANOTHER MUCH LARGER GROUP OF STOCK AND BOND FUNDS WITH ASSETS OF MORE THAN 28 BILLION THESE FUNDS WILL NOT BE AFFECTED BY THE CHANGE GERALD M COLE CHAIRMAN OF SELECTED FINANCIAL SERVICES AND A KEMPER SENIOR EXECUTIVE VICE PRESIDENT SAID IN AN INTERVIEW THAT KEMPER'S GOAL IN CHOOSING CONCORD WAS NEVER ONE OF SALES PRICE BUT OF CONCERN FOR THE WELLBEING OF THE EMPLOYEES AT SELECTED AS WELL AS THE FUND SHAREHOLDERS HE EXPRESSED SURPRISE AT THE DIRECTORS' CHOICE OF VENTURE IN THE PRESS RELEASE KEMPER SAID THAT EARLIER THIS YEAR IT HAD TOLD THE SELECTED FUNDS DIRECTORS THAT IT NO LONGER WANTED TO MANAGE THE FUNDS MR GREENEBAUM SAID KEMPER HAD ASKED THE SELECTED DIRECTORS TO BEGIN CHARGING LOADS OR SALES CHARGES ON THE FUNDS A REQUEST THE DIRECTORS TURNED DOWN IT WAS AT THAT POINT THAT KEMPER NO LONGER WANTED TO MANAGE THE FUNDS MR GREENEBAUM SAID MR GREENEBAUM SAID THE DIRECTORS LOOKED AT 17 DIFFERENT POTENTIAL MANAGERS INCLUDING BOTH MR YACKTMAN AND CONCORD KEMPER'S CHOICE MR GREENEBAUM SAID THE DIRECTORS CHOSE VENTURE AFTER A TWODAY BOARD MEETING LAST WEEK KEMPER SAID THE DECISION WAS REACHED LATE THURSDAY THE SELECTED STOCK BOND AND MONEY MARKET FUNDS WILL REMAIN NOLOAD FUNDS SOLD WITHOUT CHARGING A SALES COMMISSION MR GREENEBAUM SAID EVEN THOUGH VENTURE'S EXISTING STOCK AND BOND FUNDS CHARGE LOADS MR GREENEBAUM SAID THAT MANAGEMENT FEES AND FUND EXPENSES WILL ALSO REMAIN AT THEIR PREVIOUS LEVELS MR GREENEBAUM SAID HE WAS ELATED THAT MR DAVIS WILL RUN THE SELECTED STOCK FUNDS MR DAVIS WILL ALSO CONTINUE TO MANAGE NEW YORK VENTURE 9305030023 930503 INTERNATIONAL BRIEF CREDITANSTALT BANKVEREIN AUSTRIAN COMMERCIAL BANK WEIGHS GROUP'S MERGER BID AUSTRIA'S RAIFFEISEN COOPERATIVE BANKING MOVEMENT MADE A SURPRISE BID FOR CONTROL OF CREDITANSTALT BANKVEREIN THE COUNTRY'S SECONDLARGEST COMMERCIAL BANK IN A MOVE INTENDED TO CREATE A NEW NATIONAL BANKING GIANT THE PLAN WOULD CREATE A GROUP WITH ASSETS OF MORE THAN 700 BILLION AUSTRIAN SCHILLINGS 632 BILLION AND A STRONG POSITION IN EASTERN EUROPE CREDITANSTALT IS CONTROLLED BY THE GOVERNMENT WHICH OWNS 49 OF ITS CAPITAL AND 70 OF VOTING RIGHTS THE RAIFFEISEN COOPERATIVE COMPRISES 759 REGIONAL AND LOCAL BANKS IT IS AUSTRIA'S SIXTH LARGEST BANKING GROUP WITH ASSETS AT THE END 1992 OF 185 BILLION SCHILLINGS CREDITANSTALT'S TOTAL ASSETS AT THE END OF 1992 WERE 518 BILLION SCHILLINGS 9305030022 930503 BUSINESS BRIEF SPX CORP REVIEW OF ACQUISITION PLAN IS DELAYED BY COMMISSION SPX CORP SAID IT HAS BEEN TOLD BY THE US FEDERAL TRADE COMMISSION THAT MORE TIME IS NEEDED FOR THE COMMISSION TO COMPLETE ITS REVIEW OF SPX'S ACQUISITION OF ALLEN TESTPRODUCTS A UNIT OF ALLEN GROUP INC DALE A JOHNSON THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID WHILE WE ARE DISAPPOINTED BY THE DELAY WE CONTINUE TO BELIEVE STRONGLY IN THE MERITS OF THE PLANNED MERGER OF ALLEN TESTPRODUCTS AND BEAR AUTOMOTIVE WE HOPE THE FTC WILL COMPLETE ITS REVIEW QUICKLY SPX MUSKEGON MICH MANUFACTURES AND MARKETS SPECIALTY SERVICE TOOLS REPLACEMENT ENGINES AND PARTS FOR MOTORVEHICLE REPAIR THE COMPANY ALSO PRODUCES WINDOW AND DOOR HARDWARE HIGHPRESSURE HYDRAULIC PRODUCTS AND SOLENOID VALVES THE COMPANY DID NOT COMMENT ON THE TERMS OF THE DEAL 9305030021 930503 INTERNATIONAL WASHINGTON INSIGHT REAL WORK IN HAITI WOULD COMMENCE AFTER POLITICAL SETTLEMENT IS REACHED BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DIPLOMATS ONCE AGAIN ARE EXPRESSING OPTIMISM OVER PROSPECTS FOR A POLITICAL SETTLEMENT IN HAITI BUT AN AGREEMENT WOULD ONLY BRING THE BEGINNING OF THE HARD WORK A SENIOR STATE DEPARTMENT OFFICIAL SAYS THAT IN ADDITION TO A FIVEYEAR 1 BILLIONPLUS ECONOMIC AID PROGRAM ALREADY PROMISED THE US AND OTHER NATIONS MAY HAVE TO PROVIDE TECHNICIANS TO OVERSEE THE OPERATIONS OF NEARLY EVERY HAITIAN GOVERNMENT MINISTRY TRAINERS TO REFORM HAITI'S MILITARY AND CREATE A POLICE FORCE AND AN EXPANDED CADRE OF HUMANRIGHTS MONITORS TO CALM THE NATION'S TEMPESTUOUS POLITICAL CLIMATE EVEN SUCH AN EFFORT MAY FALL SHORT OF THE BURDENS THE CLINTON ADMINISTRATION WILL INCUR IF DIPLOMACY RESTORES TO POWER JEANBERTRAND ARISTIDE HAITI'S FIRST ELECTED PRESIDENT WHO WAS OUSTED IN A BLOODY MILITARY COUP IN SEPTEMBER 1991 THOUGH IT HAS LITTLE STRATEGIC VALUE TO THE US HAITI IS CHOCKFULL OF POLITICAL PROBLEMS FOR PRESIDENT CLINTON A COLLAPSE OF THE CURRENT TALKS PROBABLY WOULD RESULT IN A RENEWED FLOOD OF HAITIAN BOATPEOPLE TO THE US THIS WOULD HIGHLIGHT MR CLINTON'S FLIPFLOP FROM HIS CAMPAIGN PROMISE TO EASE SUCH ENTRY TO HIS PRESIDENTIAL DECISION TO ADHERE TO THE BUSH ADMINISTRATION'S POLICY OF BLOCKING FLEEING HAITIANS IT ALSO WOULD ANGER PRESIDENT CLINTON'S BLACK CONSTITUENTS INCLUDING AN ESTIMATED ONE MILLION HAITIANAMERICANS EVEN RAISING THE FUNDS TO RESUSCITATE HAITI WON'T BE EASY ADMINISTRATION OFFICIALS ARE CONFIDENT THE US COULD CONTRIBUTE 100 MILLION ANNUALLY TO THE FIVEYEAR AID EFFORT WITH THE REST COMING FROM LATIN NATIONS AND INTERNATIONAL FINANCIAL INTITUTIONS BUT WITH US RESOURCES SCARCE HAITI MUST COMPETE WITH OTHER BUDGET PRIORITIES FOR INSTANCE PRESIDENT CLINTON ALREADY IS SEEKING AN ADDITIONAL 18 BILLION IN AID THAT HE PROMISED RUSSIAN PRESIDENT BORIS YELTSIN AND NEITHER THE ADMINISTRATION NOR CONGRESS IS WILLING TO CUT AID TO ISRAEL AND EGYPT THE SACRED COWS THAT CONSUME A HUGE SHARE OF THE FOREIGNAID BUDGET THESE CONSIDERATIONS ARE FURTHER CLOUDED BY THE BLEAK PICTURE IN HAITI EXCEPT FOR THE BRIEF PERIOD OF MR ARISTIDE'S RULE HAITI HAS NEVER KNOWN DEMOCRACY SHARED AUTHORITY OR RESPONSIBLE OPPOSITION IF MR ARISTIDE IS ALLOWED TO RETURN HE WILL HAVE ONLY TWO YEARS LEFT TO HIS TERM AND IS BARRED BY THE CONSTITUTION FROM RUNNING AGAIN IN THE MEANTIME HAITI IS SCHEDULED TO HOLD PARLIAMENTARY ELECTIONS NEXT YEAR GIVEN HAITI'S VIOLENT HISTORY AND THE INTENSE MISTRUST BETWEEN THE MILITARY AND MR ARISTIDE'S FOLLOWERS POLITICAL TENSIONS ARE SURE TO REMAIN HIGH KEEPING THE PEACE MAY REQUIRE AN OUTSIDE FORCE CONSIDERABLY LARGER THAN THE MILITARY ADVISERS CURRENTLY ENVISIONED BY US OFFICIALS THE WAY TO PREVENT A COUP IN HAITI IS TO HAVE A MILITARY FORCE STRONGER THA HAITI'S SECURITY FORCES SAYS MARK FALCOFF A LATIN AMERICA SPECIALIST AT THE AMERICAN ENTERPRISE INSTITUTE MOREOVER ECONOMIC CONDITIONS IN HAITI ALREADY THE POOREST NATION IN THE WESTERN HEMISPHERE HAVE BEEN MADE WORSE BY A USBACKED EMBARGO IMPOSED AFTER THE COUP LARGELY AS A RESULT OF THE EMBARGO HAITI HAS LOST MOST OF ITS BUSINESSES THAT ASSEMBLE TEXTILE PRODUCTS SPORTING GOODS FOOTWEAR AND ELECTRONICS THEY WERE THE NATION'S LARGEST FOREIGNEXCHANGE EARNERS SAYS ERNEST PREEG A FORMER US AMBASSADOR TO HAITI STILL MR PREEG NOW A SENIOR FELLOW AT THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES SAYS THERE COULD BE A MAJOR CHANGE IN HAITI DEVELOPMENT AID COULD TRANSFORM IT FROM A BASKET CASE INTO SOMETHING SUBSTANTIAL BUT THAT REQUIRES POLITICAL STABILITY AND A GOVERNMENT THAT DOESN'T PREY ON ITS OWN PEOPLE HE SAYS ADDING HAITI HAS NEVER HAD THAT ENSURING SUCH STABILITY MAY REQUIRE A LEVEL OF INTERVENTION GREATER THAN HAITIANS WILL TOLERATE AND IT MAY HAVE TO CONTINUE FOR A PERIOD OF TIME THAT WILL MAKE AMERICANS UNEASY YOU NEED A CADRE OF ADVISERS IN POSITION TO PREVENT THE MILITARY FROM MISBEHAVING AND ALSO THE GOVERNMENT FROM MISBEHAVING PERHAPS WITH CONTROL OF THE PURSE STRINGS THIS IS SHORT OF OCCUPATION BUT IT WOULD BE CONTINUING AND RELATIVELY LONGTERM INVOLVEMENT SAYS ROBERT ROTBERG PRESIDENT OF LAFAYETTE COLLEGE WHO HAS STUDIED HAITI CLOSELY IN JULY 1915 TWO COMPANIES OF US MARINES LANDED IN HAITI TO HELP KEEP THE PEACE AND PROTECT US ASSETS THERE THEY REMAINED UNTIL AUGUST 1934 WARNING THAT A RESTORED MR ARISTIDE WON'T BE ABLE TO STAY IN POWER WITHOUT FOREIGN PROTECTION MR FALCOFF OF THE AMERICAN ENTERPRISE INSTITUTE SAYS ONCE YOU RETURN A PRESIDENT ON YOUR BAYONET THE ONLY WAY HE CAN BE KEPT IN POWER IS TO KEEP YOUR BAYONETS THERE 9305030020 930503 TRIDENT ASSET SWAP THE WOODLANDS TEXAS TRIDENT NGL INC SAID IT ACQUIRED A NATURALGAS PROCESSING PLANT IN KINGFISHER COUNTY OKLA IN AN ASSET SWAP WITH WARREN PETROLEUM CO A UNIT OF CHEVRON CO TRIDENT SAID IT SWAPPED ITS BLUITT NM GAS PLANT TO WARREN AND RECEIVED OTHER UNSPECIFIED ASSETS IN THE TRANSACTION 9305030019 930503 WHARF HOLDINGS LTD FOLLOWS POLICY OF GUARDED OPTIMISM IN HONG KONG BY CRAIG S SMITH SPECIAL TO THE WALL STREET JOURNAL HONG KONG IN MARCH WHARF HOLDINGS LTD BEGAN LAYING FIBEROPTIC CABLE THROUGH THE TUNNELS OF HONG KONG'S MASS TRANSIT RAILWAY THE BEGINNING OF WHAT WILL ULTIMATELY BE A FIVE BILLION HONG KONG DOLLAR US647 MILLION INVESTMENT IN CABLE TELEVISION FOR THE BRITISH COLONY WHAT IS REMARKABLE ISN'T THAT WHARF IS LAYING CABLE WHICH IS VITAL TO LONGFORMULATED PLANS BUT THAT THE COMPANY IS PROCEEDING WITHOUT HAVING YET RECEIVED A LICENSE TO OPERATE A CABLE SYSTEM IN HONG KONG ONE OF THE MANY HOSTAGES IN THE POLITICAL STANDOFF BETWEEN LONDON AND BEIJING THE LICENSE REMAINS IN LIMBO THROUGH A COMBINATION OF PRUDENT FINANCES AND QUIET DIPLOMACY HOWEVER WHARF AND OTHER COMPANIES IN THE TERRITORY ARE PUSHING AHEAD WITH BILLIONS OF DOLLARS OF NEW INVESTMENTS DESPITE A POLITICAL CLIMATE THAT MIGHT HAVE STALLED PROGRESS ELSEWHERE BESIDES ITS AMBITIOUS CABLETV VENTURE FOR EXAMPLE WHARF IS IN THE MIDST OF NEARLY HK10 BILLION OF PROPERTYREDEVELOPMENT PROJECTS AND AT THE HEIGHT OF THE SINOBRITISH ROW IN FEBRUARY WHARF CHAIRMAN PETER WOO STEERED THE GROUP INTO YET ANOTHER PROPERTY VENTURE ITS FIRST HONG KONG DEVELOPMENT IN SEVERAL YEARS ON LAND THAT IT HAD TO BUY THOSE INVESTMENTS SEEM TO IMPLY BOUNDLESS CONFIDENCE IN THE COLONY'S FUTURE BUT THEY MAY IN FACT BELIE A MUCH MORE GUARDED OUTLOOK WHARF SENIOR EXECUTIVES STRESS THAT MANY OF ITS MOST AMBITIOUS PROJECTS CAN BE SLOWED DOWN OR EVEN STOPPED IF TROUBLE ARISES AND WHILE THE PROPERTY AND INFRASTRUCTURE COMPANY'S SPENDING SCHEDULE SOUNDS IMPRESSIVE THE TOTAL INVESTMENT IN NEW PROJECTS IS STILL SMALL COMPARED WITH WHARF'S HK45 BILLION ASSET BASE AN ESTIMATED HK60 BILLION IF MINORITY INTERESTS ARE INCLUDED IN FACT DETERMINED NOT TO GET CAUGHT BY A SUDDEN REVERSAL OF FORTUNE THE COMPANY IS DELIBERATELY GROWING AT A MUCH SLOWER PACE THAN ITS SOLID BALANCE SHEET WOULD ALLOW WE'VE LEARNED FROM OTHERS' PAST MISTAKES SAYS WHARF EXECUTIVE DIRECTOR JOHN HUNG REFERRING TO THE COLLAPSE OF THE COLONY'S PROPERTY MARKET IN THE EARLY 1980S WHICH BURIED SEVERAL COMPANIES SO FAR ITS STRATEGY IS WORKING IT IS DIFFICULT TO FIND AN ANALYST IN HONG KONG WITH ANYTHING CRITICAL TO SAY ABOUT THE COMPANY OTHER THAN THAT IT IS PERHAPS TOO CAREFUL WHARF HAS MAINTAINED ENOUGH PROFIT GROWTH TO PLEASE SHAREHOLDERS WITH NET INCOME RISING ABOUT 15 ANNUALLY FOR THE PAST SEVERAL YEARS WHILE LEAVING A WIDE MARGIN FOR ERROR JUST IN CASE THE VAST MAJORITY OF ITS PROPERTY PROJECTS ARE ON LAND THAT IT HAD ALREADY OWNED SAVING THE COMPANY AS MUCH AS 60 IN DEVELOPMENT COSTS THE PROJECTS ARE ALSO CAREFULLY STAGED SPREADING CAPITAL DEMANDS COMFORTABLY OVER TIME AS FOR ITS INFRASTRUCTURE PROJECTS NOTHING HAPPENS WITHOUT A WINK OR A NOD FROM BEIJING IN WHARF CABLE LTD'S CASE BEIJING'S FORMAL ENDORSEMENT IS ALL THAT IS MISSING BEFORE THE HONG KONG GOVERNMENT CAN ISSUE THE LONGAWAITED CABLE LICENSE EARLIER THIS YEAR WHARF CABLE TURNED DOWN A TEMPORARY LICENSE OFFERED UNILATERALLY BY HONG KONG NOT WISHING TO PREEMPT THE TERRITORY'S FUTURE RULERS YET WHARF CLEARLY WOULDN'T BE INVESTING MILLIONS ABOUT HK250 MILLION SO FAR IF IT WASN'T CONFIDENT THAT CHINA'S ENDORSEMENT WILL COME LIKE MOST OF HONG KONG'S MAJOR COMPANIES WHARF MAINTAINS CLOSE CONTACTS WITH THE MAINLAND AND HAS MADE ITS COMMITMENT TO CHINA THE CORNERSTONE OF AN AGGRESSIVE PUBLICRELATIONS CAMPAIGN MAKING IT CLEAR THE COMPANY INTENDS TO BE A PATRIOTIC PLAYER IN HONG KONG IN MARCH CHAIRMAN WOO WAS REPAID WITH AN APPOINTMENT TO CHINA'S PANEL OF ADVISERS ON HONG KONG AFFAIRS WE COVER ALL THE BASES SAYS WHARF MANAGING DIRECTOR STEVEN NG WHO IS DEVELOPING THE COMPANY'S CABLE OPERATIONS MR NG SAYS THE COMPANY SPEAKS REGULARLY WITH OFFICIALS IN BEIJING INCLUDING MEMBERS OF THE JOINT LIAISON GROUP THE BODY CHARGED WITH AMONG OTHER THINGS GRANTING OFFICIAL ENDORSEMENTS FOR PROJECTS IN HONG KONG WHARF ALSO IS CONFIDENT THAT ITS OTHER INFRASTRUCTURE PROJECTS WILL WIN MAINLAND APPROVAL INCLUDING HONG KONG'S NINTH CONTAINER TERMINAL AT TSING YI WHARF IS PARTICIPATING IN THE PROJECT THROUGH ITS 26 STAKE IN MODERN TERMINALS LTD THE COMPANY IS TAKING NO CHANCES HOWEVER WHILE WHARF EXECUTIVES SCOFF AT SCENARIOS THAT SUGGEST HONG KONG COULD BECOME A RELATIVE BACKWATER BYPASSED BY THE PORTS OF SHENZHEN AND SHANGHAI THE COMPANY IS STUDYING THE FEASIBILITY OF PORT PROJECTS IN BOTH PLACES YET EVEN WHARF'S WELLADVERTISED COMMITMENT TO CHINA IS AN EXERCISE IN CAUTION DEPUTY CHAIRMAN GONZAGA LI HAS BEEN DUBBED KING OF WUHAN FOR HIS TALK OF DEVELOPING THE YANGTZE RIVER TOWN INTO THE CHICAGO OF CHINA BUT WHARF HAS PLEDGED TO SHAREHOLDERS THAT IT WILL LIMIT INVESTMENTS ON THE MAINLAND TO 20 OF TOTAL ASSETS LESS THAN HK500 MILLION HAS BEEN COMMITTED TO CHINA PROJECTS SO FAR AND THAT FIGURE ISN'T LIKELY TO REACH HK1 BILLION THIS YEAR ACCORDING TO WHARF'S MR HUNG EVEN FIVE YEARS DOWN THE LINE I DON'T BELIEVE WE'LL EXCEED 10 OF GROUP ASSETS INVESTED IN CHINA HE ADDS HONG KONG PROPERTY INVESTMENTS REMAIN WHARF'S MAIN FOCUS MR HUNG SUGGESTS THAT EVEN WITH THE GROWTH OF OTHER BUSINESSES PROPERTY WILL CONTINUE TO CONTRIBUTE ABOUT 70 OF THE COMPANY'S INCOME AS WHARF'S TOTAL PORTFOLIO BALLOONS TO MORE THAN 12 MILLION SQUARE FEET BY 1998 THE RENTAL INCOME FROM THE NEW PROJECTS SHOULD START FLOWING SOON THE COMPANY'S TWOMILLIONSQUAREFOOT TIMES SQUARE TOWER IN HONG KONG'S CAUSEWAY BAY IS SCHEDULED TO OPEN IN THE NEXT FEW MONTHS AS IS A SMALLER 75HELD DEVELOPMENT IN SINGAPORE KNOWN AS LANE CRAWFORD PLACE THE FIRST PHASE OF ITS HARBOUR CITY REDEVELOPMENT IN TSIM SHA TSUI CALLED GATEWAY IS SCHEDULED TO ADD NEARLY 14 MILLION SQUARE FEET NEXT YEAR THE AMPLE CASH FLOW FROM THESE PROJECTS AND WHARF'S CURRENT RENT ROLL IS EXPECTED TO PUSH THE COMPANY'S ANNUAL PROFIT GROWTH TOWARD 20 IN THE YEARS AHEAD AND STILL FUND THE INITIAL STAGES OF THE CABLETV PROJECT WITHOUT HAVING TO RESORT TO BANK FINANCING MR HUNG SAYS IT WOULD TAKE A TRUE DISASTER IN HONG KONG TO DRY UP WHARF'S CASH FLOW SUFFICIENTLY TO CAUSE SERIOUS PROBLEMS IF HONG KONG COLLAPSES WE'LL GO WITH IT BUT NO ONE EXPECTS THAT TO HAPPEN THE EXECUTIVE SAYS 9305030018 930503 THE OUTLOOK CHOICES FOR SHRINKING JAPAN'S TRADE SURPLUS BY DAVID WESSEL WASHINGTON ONE OF THESE DAYS PRESIDENT CLINTON'S ECONOMISTS ARE GOING TO GIVE HIM A MULTIPLE CHOICE TEST THAT GOES LIKE THIS THE BEST WAY TO SHRINK JAPAN'S HUGE TRADE SURPLUS IS A GET JAPAN TO STIMULATE ITS ECONOMY AND LIFT THE VALUE OF THE YEN OR B GET JAPAN TO SET FIRM TARGETS FOR IMPORTS OF PARTICULAR US GOODS LABEL THE FIRST THE LAWRENCE SUMMERS OPTION AFTER THE TREASURY UNDERSECRETARY LABEL THE SECOND THE LAURA D'ANDREA TYSON OPTION AFTER THE HEAD OF THE COUNCIL OF ECONOMIC ADVISERS AS HE OFTEN DOES THE PRESIDENT WILL WANT TO PICK OPTION C BOTH OF THE ABOVE OF COURSE THE US CAN AND WILL LEAN ON JAPAN BOTH TO STRENGTHEN ITS ECONOMY SO IT WILL TAKE IN MORE IMPORTS AND TO PROMISE TO BUY MORE FROM CRUCIAL US INDUSTRIES BUT NOT EVERYTHING CAN BE AT THE TOP OF MR CLINTON'S WISH LIST IT IS DIFFICULT PERHAPS COUNTERPRODUCTIVE TO DELUGE JAPAN WITH DEMANDS AID RUSSIA INCREASE GOVERNMENT SPENDING BUY MORE AUTO PARTS AND TELL THEM THAT EACH IS THE NO 1 PRIORITY IN A REVEALING COMMENT THE OTHER DAY MR CLINTON TICKED OFF HIS REMEDIES FOR JAPAN'S TRADE SURPLUS ALL OF THEM NUMBER ONE THE APPRECIATION OF THE JAPANESE YEN NUMBER TWO THE STIMULUS PROGRAM WHICH THE JAPANESE PRIME MINISTER HAS TALKED ABOUT NUMBER THREE A BREATHTAKING INCREASE IN PRODUCTIVITY AND QUALITY BY AMERICAN MANUFACTURERS AND NUMBER FOUR A COMMITMENT TO FOCUS SECTORBYSECTOR ON GETTING US GOODS INTO JAPAN THAT LAST POINT WAS AN EYEPOPPER WHILE THE US TRADITIONALLY HAS PUSHED FOR OPEN MARKETS IT HAS SHIED AWAY WITH OCCASIONAL EXCEPTIONS FROM PREEMPTING MARKET FORCES AND USING GOVERNMENT NEGOTIATIONS TO DETERMINE HOW MUCH OF ANY PRODUCT A FOREIGN COUNTRY SHOULD BUY EACH SIDE IN THE INTERNAL TUG OF WAR TOOK HIS COMMENTS AS A SIGN THAT IT WAS WINNING BUT THE REALITY IS THAT NO ONE IS MR CLINTON WHO PROMISED TO FOCUS ON THE ECONOMY HAS SPENT FAR MORE TIME ON RUSSIA AN ECONOMIC WRECK THAN ON JAPAN A TRUE SUPERPOWER MR CLINTON'S ADVISERS BARELY MANAGED TO FIGURE OUT WHAT HE SHOULD TELL PRIME MINISTER KIICHI MIYAZAWA BEFORE HE SHOWED UP AT THE WHITE HOUSE THE DISAGREEMENTS AREN'T ABOUT WHO IS FRIENDLIER TO JAPAN BOTH CAMPS ARE FRUSTRATED BY RECENT DEALINGS WITH THE JAPANESE THE ARGUMENT IS ABOUT THE BEST WAY TO NARROW THE US TRADE DEFICIT WITH JAPAN WHICH WAS 50 BILLION LAST YEAR THE DEFICIT WITH THE REST OF THE WORLD WAS 46 BILLION THE SUMMERS OPTION WIDELY SUPPORTED BY ECONOMISTS DRAWS ON LESSONS OF THE 1980S AS THE DOLLAR FELL AND THE YEN ROSE THE TRADE GAP WITH JAPAN SHRANK WITH THE TWOYEAR LAG THAT TEXTBOOKS PREDICT THE CONVENTIONAL WISDOM HAS PERFORMED ACCEPTABLY WELL INDEED BETTER THAN WE MIGHT HAVE EXPECTED MASSACHUSETTS INSTITUTE OF TECHNOLOGY ECONOMIST PAUL KRUGMAN SAYS THE PRESCRIPTION IS THE ONE EXPRESSED IN THE COMMUNIQUE THAT TREASURY SECRETARY LLOYD BENTSEN NEGOTIATED WITH FELLOW FINANCE MINISTERS LAST WEEK JAPAN SHOULD INCREASE GOVERNMENT SPENDING OR CUT TAXES TO PROD ITS ECONOMY THAT WILL INCREASE JAPANESE DEMAND FOR IMPORTED GOODS AND PUSH UP THE VALUE OF THE YEN MAKING JAPANESE GOODS LESS ATTRACTIVE IN THE US THE SCREAMS FROM JAPAN AS THE YEN HAS RISEN SHOW HOW POTENT THE EXCHANGERATE MEDICINE CAN BE HE ROUGHLY 10 INCREASE IN THE YEN SO FAR THIS YEAR AMOUNTS TO A 10 TAX ON ALL JAPANESE PRODUCTS SOLD IN THE US SUCH AN APPROACH THE ARGUMENT GOES WOULD FAR SURPASS WHAT MIGHT BE ACCOMPLISHED BY PRYING CONCESSIONS OUT OF THE JAPANESE ON THREE OR FOUR HIGHLY VISIBLE INDUSTRIES MS TYSON COUNTERS THAT THE JAPANESE TRADE SURPLUS IS HIGHLY RESISTANT TO MACROECONOMIC SOLUTIONS A 10 RISE IN THE VALUE OF THE YEN WILL REDUCE THE JAPANESE SURPLUS WITH THE US BY ABOUT 5 BILLION AFTER TWO YEARS SHE FIGURES USING STANDARD COMPUTER MODELS OF THE ECONOMY SHE SAYS THAT TO INCREASE US EXPORTS TO JAPAN BY 25 BILLION THE JAPANESE ECONOMY WOULD HAVE TO GROW BY 50 A VERY UNLIKELY SCENARIO SHE CONCLUDES THAT THE US MUST SUPPLEMENT THE TEXTBOOK ECONOMIC REMEDY WITH RESULTSORIENTED NEGOTIATIONS TO FORCE JAPAN TO BUY MORE US PRODUCTS PARTICULARLY IN HIGHTECHNOLOGY INDUSTRIES MS TYSON IS MODERATE COMPARED WITH SOME ADMINISTRATION OFFICIALS MICKEY KANTOR THE PUGNACIOUS US TRADE REPRESENTATIVE AND RONALD BROWN'S COMMERCE DEPARTMENT WITH ITS TRADITIONAL INSTITUTIONAL BENT TOWARD HELPING PARTICULAR US INDUSTRIES WANT MR CLINTON TO WREST INDUSTRYSPECIFIC IMPORT COMMITMENTS OUT OF THE RELUCTANT JAPANESE MR CLINTON'S COMMENTS SUGGEST HE LEANS IN THEIR DIRECTION SO WHILE IT PURSUES THE SUMMERS OPTION THE ADMINISTRATION ALSO WANTS TO REACH AGREEMENT WITH JAPAN ON A FEW KEY INDUSTRIES TO TARGET BEFORE MR CLINTON GOES TO TOKYO IN JULY UNTIL MR CLINTON PICKS A OR B US POLICY WILL BE OPTION C 9305030017 930503 ANADARKO PETROLEUM WELL HOUSTON ANADARKO PETROLEUM CORP SAID ITS CONFIRMATION WELL IN THE YEGUA TREND OF SOUTHEASTERN TEXAS TESTFLOWED 43 MILLION CUBIC FEET OF NATURAL GAS A DAY AND 66 BARRELS A DAY OF CONDENSATE AN OILLIKE SUBSTANCE THE PRODUCING ZONE OR PAY OF THIS WELL NAMED THE BE QUINN NO 1 IS SEPARATED FROM THE NEAREST PRODUCING ZONE BY A FAULT AN ANADARKO SPOKESMAN SAID TECHNICALLY THIS WELL IS A DISCOVERY WELL EVEN THOUGH IT IS VERY CLOSE TO ANOTHER WELL CALLED THE RITA GONZALES NO 1 HE SAID ANADARKO OWNS 567 IN THE WELL AND UNOCAL OIL CO THE OPERATOR OWNS 285 THE REST IS OWNED BY THREE OTHER FIRMS 9305030016 930503 BUSINESS BRIEF COMPANIA DE TELEFONOS DE CHILE SA OPERATING INCOME ROSE 32 IN QUARTER BUT NET FELL 35 COMPANIA DE TELEFONOS DE CHILE SA SAID ITS FIRSTQUARTER OPERATING INCOME WAS UP 32 FROM A YEAR EARLIER ON THAT BASIS ITS OPERATING MARGIN FOR THE FIRST QUARTER GREW TO 39 FROM 36 IN LAST YEAR'S FIRST QUARTER THE 1993 QUARTER'S OPERATING INCOME WAS BEFORE A PROVISION FOR THE ACCELERATED DEPRECIATION OF TELEPHONE EQUIPMENT BEING WITHDRAWN THE COMPANY SAID EARNINGS FOR THE FIRST QUARTER BEFORE THE SPECIAL DEPRECIATION PROVISION AND THE EFFECT OF DEVALUATION INCREASED 43 AFTER THESE ITEMS NET INCOME IN THE FIRST QUARTER DROPPED 35 TO 365 MILLION TELEFONOS DE CHILE SAID CASH FLOW IN THE FIRST QUARTER ROSE 39 TO 878 MILLION THE COMPANY SAID THAT DURING THIS YEAR'S FIRST QUARTER ITS RESULTS WERE AFFECTED BY THE DEVALUATION OF THE CHILEAN PESO AGAINST THE DOLLAR IT NOTED THAT IN LAST YEAR'S FIRST QUARTER IT HAD A SIGNIFICANT GAIN FROM THE REVALUATION OF THE CHILEAN PESO AGAINST THE DOLLAR 9305030015 930503 SUNBEAM EXCHAIRMAN ALLEGES PRESSURE BY INVESTOR TO EXTEND CREDIT TO MACY BY RON SUSKIND STAFF REPORTER OF THE WALL STREET JOURNAL MICHAEL PRICE A MAJOR MUTUAL FUND MANAGER USED HIS INFLUENCE AS A BIG SUNBEAM OSTER CO INVESTOR TO GET THE HOMEPRODUCTS COMPANY TO EXTEND CREDIT TO RH MACY & CO JUST BEFORE MACY ENTERED BANKRUPTCY COURT ACCORDING TO SUNBEAM'S OUSTED CHAIRMAN THE EXCHAIRMAN PAUL B KAZARIAN WHO IS INVOLVED IN BITTER LITIGATION WITH MR PRICE AND OTHERS WHO SUPPORTED HIS OUSTER SAID IN AN INTERVIEW THAT MR PRICE OFTEN SOUGHT FAVORABLE SUNBEAM TREATMENT FOR MACY IN 1991 AND 1992 DESPITE THE RETAILER'S FINANCIAL TROUBLES MR KAZARIAN SAID MR PRICE WANTED TO SALVAGE THE VALUE OF INVESTMENTS IN MACY SECURITIES MADE BY THE MUTUAL SERIES GROUP OF FUNDS THAT MR PRICE MANAGES MACY SECURITIES OWNED BY THE FUND GROUP HAVE LOST CONSIDERABLE MARKET VALUE IN THE LAST YEAR MR KAZARIAN SAID HIS RESISTANCE TO MR PRICE'S PRESSURE WAS ONE REASON FOR HIS OUSTER AND HAD NOTHING TO DO WITH HIS ABILITY TO RUN THE COMPANY WHICH IS BASED IN PROVIDENCE RI HIS STATEMENTS ARE THE LATEST IN A STRING OF CLAIMS AND COUNTERCLAIMS CONCERNING HIS FIRING IN JANUARY SUNBEAM OFFICIALS HAVE ASSERTED THAT MR KAZARIAN WAS OUSTED BECAUSE OF ERRATIC CONDUCT THAT DISQUALIFIED HIM AS A SUITABLE CHIEF EXECUTIVE MR KAZARIAN SAID AT THE TIME OF HIS OUSTER THAT HE KNEW NO REASON FOR IT BUT HE HAS SINCE ASSERTED IN A LAWSUIT IN DELAWARE CHANCERY COURT THAT MR PRICE AND MICHAEL STEINHARDT ANOTHER MAJOR SUNBEAM INVESTOR WANTED HIM OUT OF THE WAY FOR THEIR OWN FINANCIAL GAIN THE THREE MEN ARE ALSO IN A DISPUTE OVER A PARTNERSHIP THEY FORMED THAT OWNS A 77 STAKE IN SUNBEAM VALUED AT ABOUT 12 BILLION MR KAZARIAN'S OUSTER MR PRICE SAID WAS A DECISION OF SUNBEAM'S BOARD BASED ON PAUL'S CONDUCT AND HAD NOTHING TO DO WITH INVESTMENT STRATEGIES OF THE MUTUAL SERIES FUNDS HE SAID A CALL HE MADE TO MR KAZARIAN ABOUT TRADE CREDIT TO MACY WAS TO INQUIRE ABOUT SUNBEAM'S POLICIES HE SAID HE NEVER PRESSURED MR KAZARIAN TO TAKE ANY ACTION ALTHOUGH NO ONE HAS ALLEGED THAT MR PRICE HAS DONE ANYTHING ILLEGAL ANY ACTIONS TAKEN BY MR PRICE AT SUNBEAM TO BENEFIT MACY WOULD RAISE QUESTIONS OF A POSSIBLE CONFLICT OF INTEREST CONCERNING HIS INVESTMENT AND MANAGEMENT POSITIONS IN THE TWO COMPANIES MR PRICE WAS ON THE MACY BOARD UNTIL FEBRUARY 1993 AND HIS DESIGNATE PETER LANGERMAN IS A SUNBEAM DIRECTOR ACCORDING TO MR KAZARIAN AND MARK OGAN SUNBEAM'S HOUSEWARES DIVISION PRESIDENT AT THE TIME SUNBEAM HAD WHITTLED DOWN MACY'S LINE OF TRADE CREDIT FROM 25 MILLION IN EARLY 1991 TO 350000 IN AUGUST OF THAT YEAR BY FORCING THE RETAILER TO PAY FOR GOODS IT HAD ALREADY RECEIVED BEFORE MORE WOULD BE SHIPPED BUT IN EARLY NOVEMBER WITH THE CHRISTMAS SEASON ABOUT TO BEGIN MR KAZARIAN SAID HE RECEIVED A CALL FROM MR PRICE TELLING HIM TO OPEN THE FLOODGATES TO MACY MR KAZARIAN SAID HE WAS SKEPTICAL AND RAISED THE POSSIBILITY THAT MACY WOULD FILE FOR BANKRUPTCY IN THAT EVENT MR KAZARIAN SAID MR PRICE RESPONDED YOU MAY LOSE A MILLION BUT I'LL LOSE A LOT MORE MR PRICE NOW SAYS THAT'S RIDICULOUS I NEVER SAID IT MR KAZARIAN RECALLED MR PRICE SAYING MACY WAS ABOUT TO GET FRESH FINANCING AND THAT SUNBEAM SHOULD EXTEND 5 MILLION TO 10 MILLION IN PRODUCT ON CREDIT TO THE RETAILER MR KAZARIAN SAID MR PRICE ADDED THAT HE WOULD COVER ANY LOSSES SUNBEAM MIGHT INCUR MR PRICE DECLINED COMMENT THROUGH HIS ATTORNEY IN THE NEXT FEW DAYS ABOUT 150000 OF ADDITIONAL PRODUCT WAS SHIPPED BEFORE MR KAZARIAN SAID HE BEGAN TO DOUBT MR PRICE'S ASSERTION ABOUT MACY'S FINANCING AND RETURNED TO A PAYASYOUGO POLICY WITH THE RETAILER MR PRICE CONFIRMED THAT HE CALLED MR KAZARIAN ON MACY'S BEHALF BUT SAID IT WAS JUST TO MAKE INQUIRIES NOT TO EXERT PRESSURE I OWNED A BIG PIECE OF BOTH COMPANIES SAID MR PRICE I WOULDN'T HAVE TOLD SUNBEAM TO SHIP IF I KNEW IT WOULD RESULT IN LOSSES WHEN MACY FILED FOR BANKRUPTCY IN JANUARY 1992 SUNBEAM WAS OWED ABOUT 470000 IT HAS NOT YET BEEN PAID MR KAZARIAN SAID SUNBEAM DECLINES TO SAY HOW MUCH IT IS OWED BY MACY IT REPORTED NET INCOME OF 483 MILLION LAST YEAR ON SALES OF 9672 MILLION MR KAZARIAN SAID THAT IN THE PAST YEAR MR PRICE CONTINUED TO PRESS HIM TELLING HIM TO LIGHTEN UP ON MACY AND SHIP MORE PRODUCTS ON CREDIT WHICH HE RESISTED BUT SINCE MR KAZARIAN'S REMOVAL ON JAN 9 SUNBEAM HAS EXPANDED SHIPMENTS TO MACY EXECUTIVES AT MACY WHICH IS CURRENTLY REORGANIZING UNDER BANKRUPTCY PROTECTION SAY THE NUMBER OF SUNBEAM PRODUCTS ON THEIR SHELVES AND THE VOLUME SHIPPED ARE UP SHARPLY SINCE JANUARY MR KAZARIAN SAID THE RELATIONSHIP WITH MR PRICE AND MR STEINHARDT WAS STRAINED BY THE TWO INVESTORS' DESIRE TO DISTRIBUTE TO THEMSELVES THE SUNBEAM STOCK HELD IN THEIR THREEWAY PARTNERSHIP SUNBEAM OSTER EQUITIES LTD FUNDS UNDER THE MANAGEMENT OF MR PRICE AND MR STEINHARDT A NEW YORK MONEY MANAGER EACH EFFECTIVELY OWN ABOUT 40 OF THE PARTNERSHIP WITH MR KAZARIAN THROUGH A LIMITED PARTNERSHIP HE CONTROLS OWNING ABOUT 20 UNDER THE PARTNERSHIP'S ORIGINAL TERMS MR KAZARIAN WAS GENERAL PARTNER AND HAD VETO POWER OVER STOCK DISTRIBUTIONS HE SAID HE REBUFFED MESSRS PRICE AND STEINHARDT WHEN THEY SOUGHT SUNBEAM STOCK DISTRIBUTIONS LAST YEAR HE ALSO SAID THAT THE INVESTORS OFFERED TO BUY HIS STAKE THIS PAST FEBRUARY AFTER HIS FIRING AT A DISCOUNT TO SUNBEAM'S SHARE PRICE HE SAID HE REFUSED BOTH MR PRICE AND REPRESENTATIVES OF MR STEINHARDT DECLINED COMMENT WHEN ASKED WHETHER THEY HAVE RECENTLY OFFERED MR KAZARIAN A BUYOUT THEY DENY THEY ASKED HIM TO DISTRIBUTE THE STOCK LAST YEAR BOARD MEMBERS WHO OUSTED MR KAZARIAN SAY HIS BEHAVIOR WAS UNSUITABLE DIRECTORS AND TOP SUNBEAM EXECUTIVES ASSERT THAT MR KAZARIAN ALIENATED HIS MANAGEMENT TEAM BERATED EMPLOYEES IN PUBLIC SHOT BBS AT CHAIRS IN THE SUNBEAM HEADQUARTERS MADE LEWD REMARKS TO WOMEN IN PUBLIC AND RENEGED ON BUSINESS DEALS MANY OF THESE ALLEGATIONS WERE MADE BY SUNBEAM OFFICIALS SPEAKING UNDER CONDITIONS OF ANONYMITY IN A WALL STREET JOURNAL STORY MR KAZARIAN SAID SUCH ALLEGATIONS ARE RIDICULOUS HE CONTENDED THE BOARD INVESTIGATION LED BY REPRESENTATIVES OF MESSRS PRICE AND STEINHARDT WAS ANYTHING BUT DISINTERESTED A CHARGE DIRECTORS DENY PAUL KAZARIAN IS TOTALLY UNQUALIFIED TO RUN A COMPANY THE SIZE OF SUNBEAM SAID RODERICK HILLS ONE OF TWO OUTSIDE DIRECTORS THE MAN HAD NO PLAN NO IDEA HOW TO RUN SUNBEAM MR KAZARIAN SAID THE RELATIONSHIP WITH MR PRICE AND MR STEINHARDT WAS STRAINED BY THEIR DESIRE TO DISTRIBUTE TO THEMSELVES THE SUNBEAM STOCK HELD IN THEIR THREEWAY PARTNERSHIP SUNBEAM OSTER EQUITIES LTD FUNDS UNDER THE MANAGEMENT OF MR PRICE AND MR STEINHARDT A NEW YORK MONEY MANAGER EACH EFFECTIVELY OWN ABOUT 40 OF THE PARTNERSHIP WITH MR KAZARIANTHROUGH A LIMITED PARTNERSHIP HE CONTROLSOWNING ABOUT 20 9305030014 930503 TECHNOLOGY DIASONICS POSTS LOSS PLANS TO SPLIT CONCERN INTO THREE ENTITIES MILPITAS CALIF DIASONICS INC BLAMING PRODUCT COSTS AND A SLOWDOWN IN ORDERS FROM HOSPITAL CUSTOMERS SAID IT HAD A 2 MILLION LOSS IN THE FIRST QUARTER AND HOPES TO ENHANCE PERFORMANCE BY SPLITTING INTO THREE SEPARATE ENTITIES THE LOSS EQUAL TO 16 CENTS A SHARE COMPARES WITH A BREAKEVEN QUARTER FOR THE MEDICAL IMAGING CONCERN A YEAR EARLIER REVENUE ROSE 83 TO 721 MILLION FROM 666 MILLION A YEAR EARLIER THE RESULTS WERE NOT A GREAT SURPRISE ON WALL STREET BECAUSE MEDICAL SUPPLY COMPANIES LIKE DIASONICS ARE HURTING AS HOSPITALS DELAY CAPITAL EXPENDITURES AMID UNCERTAINTY OVER THE CLINTON ADMINISTRATION'S PROPOSED HEALTHCARE REFORM THE HOSPITAL MARKET IS TAKING A WAIT AND SEE ON NEW POLICIES SAID SHAWN M O'CONNOR CHIEF FINANCIAL OFFICER IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FRIDAY DIASONICS CLOSED AT 10625 DOWN 25 CENTS THE COMPANY'S MAIN LINE OF ULTRASOUND PRODUCTS WAS ESPECIALLY HARD HIT BY THE DELAY IN HOSPITAL EXPENDITURES AS RESULTING SOFTNESS IN THE MARKET INCREASED PRESSURE ON PRICING AND GROSS MARGINS DIASONICS OFFICIALS SAID ULTRASOUND IS A DIAGNOSTIC TECHNOLOGY IN WHICH A DEVICE TRANSFORMS ECHOES INTO IMAGES OF INTERNAL ORGANS DIASONICS HAS INVESTED HEAVILY IN ITS NEW LINE OF SPECTRA VST ULTRASOUND PRODUCTS AND THOSE COSTS ALSO WEIGHED ON PROFITABILITY IN THE FIRST QUARTER DIASONICS ULTRASOUND IS ONE OF THREE DIASONICS' SUBSIDIARIES THAT THE FIRM SAID IT PLANS TO SPLIT INTO SEPARATE PUBLICLY TRADED COMPANIES SO THEY CAN FOCUS ON THEIR CORE BUSINESSES PREVIOUSLY DIASONICS HAD ANNOUNCED A RESTRUCTURING THAT WOULD SPLIT IT INTO JUST TWO SEPARATE COMPANIES THE NEW COMPANIES WOULD BE DIASONICS ULTRASOUND INC OEC MEDICAL SYSTEMS INC ENCOMPASSING THE XRAY AND UROLOGY UNIT'S BUSINESS AND FOCAL SURGERY INC ENCOMPASSING THE UNIT THAT IS DEVELOPING SURGICAL PRODUCTS USING THE ULTRASOUND TECHNOLOGY THE DIVESTITURE PLAN WHICH WOULD CAUSE DIASONICS INC TO CEASE TO EXIST IS SUBJECT TO SHAREHOLDER APPROVAL IN THE THIRD QUARTER IF APPROVED DIASONICS SAID IT EXPECTS TO SPLIT UP THE COMPANY DURING THE SAME QUARTER 9305030013 930503 BUSINESS BRIEF MITSUI TRUST & BANKING INCREASE IN RESERVES CAUSES LOWERING OF PROFIT FORECAST MITSUI TRUST & BANKING OF JAPAN HAS SHARPLY LOWERED ITS FORECAST FOR EARNINGS FOR THE YEAR ENDED MARCH 31 AMID AN INCREASE IN RESERVES SET ASIDE FOR NONPERFORMING AND OVERSEAS LOANS THE CONCERN NOW FORECASTS PRETAX PROFIT OF 21 BILLION YEN 1892 MILLION DOWN 34 FROM THE PROJECTION OF 32 BILLION YEN PRETAX PROFIT FOR 1992 WAS 4839 BILLION YEN MITSUI TRUST IS THE LAST OF THE 21 LEADING COMMERCIAL OR CITY TRUST AND LONGTERM CREDIT BANKS TO POST SECURITIES VALUATION LOSSES FOR THE YEAR ALTHOUGH THE LOSSES FROM DEVALUATION OF EQUITY PORTFOLIOS WERE ROUGHLY 30 LESS THAN THEY WOULD HAVE BEEN HAD THE TOKYO STOCK MARKET NOT RECOVERED LATE IN THE FISCAL YEAR PRETAX PROFIT FOR MOST OF THE BANKS WON'T BENEFIT BECAUSE OF THE INCREASE IN LIQUIDATION OF NONPERFORMING LOANS 9305030012 930503 BUSINESS BRIEF CASIO COMPUTER CO CONCERN TO INCREASE CAPACITY TO HELP OFFSET STRONG YEN CASIO COMPUTER CO A JAPANESE MAKER OF CALCULATORS AND WATCHES WILL DOUBLE ITS PRODUCTION CAPACITY IN SOUTHEAST ASIA OVER THE NEXT TWO YEARS IN AN ATTEMPT TO COPE WITH THE YEN'S RISE IN CURRENCY MARKETS A COMPANY SPOKESMAN SAID THE SPOKESMAN SAID CASIO WILL AIM TO PRODUCE ABOUT 150 BILLION YEN 135 BILLION OF PRODUCTS AT ITS SOUTHEAST ASIAN FACTORIES BY THE SPRING OF 1995 FROM ABOUT 70 BILLION TO 80 BILLION YEN AT PRESENT THE YEN HAD SURGED FROM ABOUT 125 YEN TO THE DOLLAR IN FEBRUARY TO HISTORIC LOWS BELOW 110 YEN DURING THE LAST FEW WEEKS GROWING POLITICAL PRESSURE FROM JAPAN'S MAJOR TRADING PARTNERS TO CURB THE NATION'S RECORD TRADE SURPLUS HAS BEEN A MAJOR FACTOR BEHIND THE YEN'S STRENGTHENING CASIO WILL BOOST CAPACITY AT ITS FACTORIES IN MALAYSIA THAILAND AND SINGAPORE THE COMPANY ALSO PLANS TO INCREASE LOCAL PROCUREMENT TO 50 FROM THE CURRENT 20 TO 30 TO HELP OFFSET THE YEN'S STRENGTH 9305030009 930503 MANAGER'S JOURNAL STRONG SALES FOCUS KEEPS YOUR EYE ON THE BALL BY JACK FALVEY EACH DAY THAT DAN CRONIN THENPRESIDENT AND OWNER OF A MEDICALEQUIPMENT FIRM CAME TO WORK HE WOULD GO BY THE ORDER DESK AND ASK WITH A SMILE HOW ARE YOUR ORDERS TODAY LATER IN THE MORNING OVER AT ACCOUNTS RECEIVABLE HE WOULD BE HEARD INQUIRING WHAT DO YOUR CHECKS LOOK LIKE TOWARD THE END OF THE DAY HE WOULD BE OUT BY THE LOADING DOCK COMPLIMENTING THE SHIPPER ON WHAT HE WAS GETTING OUT THE DOOR THAT AFTERNOON MR CRONIN HAD A VICE PRESIDENT OF SALES A COMPTROLLER AND A HEAD OF MANUFACTURING THEY RAN THEIR FUNCTIONS BUT HE LIKED TO KEEP FOCUSED ON THE BASICS EACH DAY DREW CONWAY ALSO FOCUSES ON THE BASICS HE STARTED THE REGISTRY OF NEWTON MASSACHUSETTS IN 1987 TO PROVIDE CONTRACT EXPERTISE TO THE SOFTWARE INDUSTRY HE HAS GONE TO 40 MILLION IN SALES THIS YEAR WITH NINE OFFICES AND PLANS TO HIT 30 LOCATIONS AND BREAK 100 MILLION IN SALES BY 1995 HE HAS 150 FULLTIME EMPLOYEES AND SERVES SOME 50000 SOFTWARE ENGINEERS PROGRAMMERS AND TECHNICAL WRITERS HE RELIES ON SALES MANAGEMENT TO FUEL GROWTH AND BELIEVES THAT PICKING THE RIGHT SALES PERSON IS 85 OF THE EQUATION WITH THIS FOCUS MR CONWAY HAS MANAGED A 40 INCREASE IN SALES IN A FLAT ECONOMY THE FOCUS ON SALES THE TOP LINE OF THE INCOME STATEMENT AS OPPOSED TO BOTTOMLINE EARNINGS DEFINITELY KEEPS THE EMPHASIS ON SERVING CUSTOMERS RATHER THAN MARKET ANALYSTS NOTHING WRONG WITH STRONG EARNINGS BUT ONCE THE FOCUS GOES IN THAT DIRECTION IT IS FAR TOO EASY TO LOSE SIGHT OF THE SALES BALL THERE IS GREAT INTELLECTUAL TALENT AT THE TOP OF AMERICA'S LEADING COMPANIES BUT IN MANY CASES IT IS A CURSE IN SEARCH OF CHALLENGING STRATEGIES IN ACQUISITIONS AND MERGERS LEVERAGED BUYOUTS AND DIVERSIFICATION TALENTED MANAGERS LOSE SIGHT OF THE BASICS THEY TRY TO DO THINGS LIKE JUSTIFYING THE SYNERGY BETWEEN A DOGFOOD COMPANY AND A COMPUTER SOFTWARE DIVISION THEY LOSE FOCUS IN THE PROCESS THE GROWTH COMPANIES IN THE US ECONOMY APPLY FOCUS FORCE WITH GREAT INTENSITY THEY MAKE MISTAKES BUT THEY KEEP ASKING THEMSELVES WHAT IS OUR BUSINESS WHAT IS THE BUSINESS OUR CUSTOMERS ARE IN WHAT MAKES MONEY GM RECENTLY WENT INTO THE CREDITCARD BUSINESS WHILE STILL LOSING AUTOMOTIVE MARKET SHARE WITH TOO MANY PRODUCTS AND TOO MANY DIVISIONS GM CAN MAKE A GREAT CASE FOR THE SATURN EXPERIMENT AND FOR THE SYNERGY OF THEIR CREDIT CARD WHAT IT CAN'T YET DO IS MAKE BOTH CARS AND MONEY AT THE SAME TIME ONCE YOU LOSE FOCUS IT'S VERY DIFFICULT TO REGAIN IT IBM BECAME A WORLDWIDE FAMILY EMPLOYMENT CLUB MORE THAN 380000 MEMBERS ITS MAINFRAME BUSINESS WENT FLAT FIVE YEARS AGO IT LOST FOCUS ON ITS CUSTOMERS AND MARKETS BY REORGANIZING ITSELF AWAY FROM THE DIRECTION THAT TECHNOLOGY WAS TAKING IT FOCUS ON MAINTENANCE OF EARNINGS CAUSED AGGRESSIVE ACCOUNTING PRACTICES RATHER THAN AGGRESSIVE SALES TACTICS IBM IS NOW PAYING MILLIONS OF DOLLARS TO AN OUTSIDER TO ATTEMPT TO RETURN FOCUS BACK TO ITS BASE BUSINESS THERE IS NOTHING WRONG WITH US INDUSTRY OR MANAGEMENT THERE ARE LITERALLY MILLIONS OF COMPANIES THAT FOCUS ON WHAT THEY DO BEST AND DO IT WELL GILLETTE IS A GOOD EXAMPLE ALTHOUGH IT IS A TRADITIONALLY ORGANIZED BIG COMPANY THAT BECAME A GLOBAL CORPORATION IN THE 1920S IT HAS REMAINED FOCUSED ON RAZOR BLADES GILLETTE'S PRODUCT MANAGER FOR SHAVING HAS A UNIQUE TITLE HE IS CALLED CHAIRMAN OF THE BOARD WITH JOINT VENTURES IN RUSSIA CHINA AND INDIA GILLETTE IS EXPERT AT SELLING GLOBALLY IT CONTINUES TO INVEST HEAVILY IN THE THING IT DOES BEST IT HAS BEATEN OUT COMPETITION AROUND THE WORLD BY TURNING ITS BASIS PRODUCT INTO A HIGHTECH MANUFACTURING ACE CALLED SENSOR IT HAS BEEN TOTALLY FOCUSED SINCE 1903 AGAINST REPEATED ADVICE TO DIVERSIFY MCDONALD'S IS ANOTHER COMPANY THAT HAS TENACIOUSLY STUCK TO ITS PRIMARY FOCUS THE BURGER BUSINESS IT HAS TAKEN ITS QUALITY PRICE AND SERVICE MESSAGE AROUND THE WORLD WITHOUT DILUTING ITS POTENCY IT HAS SURPASSED SEARS AS THE LARGEST HOLDER OF GLOBAL RETAIL REAL ESTATE IT IS SAID THAT MCDONALD'S IS FOCUSED TO A FAULT NOT SO IT IS PERFECTLY FOCUSED TECHNOLOGY CAN PLAY A MAJOR ROLE IN BUSINESS SUCCESS WHEN THE FOCUS IS RIGHT INVENTORY LEVELS HAVE BEEN GREATLY REDUCED AND SERVICE LEVELS GREATLY INCREASED IN THE PAST FEW YEARS JUST BY KEEPING CLOSE COMPUTERIZED ACCOUNT ON MINUTE PRODUCT MOVEMENT OF COURSE INVENTORY CONTROL AND HIGHTECH RAZOR BLADES MAY SEEM TO BE RATHER SIMPLE END PRODUCTS OF BIG TECHNOLOGICAL BREAKTHROUGHS THIS JUST SHOWS THAT WHEN THE COMPUTER IS APPLIED TO THE BASICS IT ALLOWS FOR SUPER FOCUS ONE MAN OR WOMAN WHETHER MBA OR HIGHSCHOOL DROPOUT CAN WITH FOCUS AND MINIMAL DISTRACTION CREATE THOUSANDS OF JOBS MANAGEMENT THEORY INDUSTRIAL POLICY SOCIAL ENGINEERING AND TAX CODES ARE ALL DISTRACTIONS FROM THE FUNDAMENTAL FOCUS THAT FUELS SUCCESS ACHIEVING FOCUS IS THUS MADDENINGLY SIMPLE AND MADDENINGLY DIFFICULT AT THE SAME TIME DAN CRONIN AND DREW CONWAY HAVE DONE IT KING C GILLETTE AND RAY KROC DID IT ROGER SMITH AND JOHN AKERS LOST FOCUS WHEN THE GREAT TENNIS CHAMPION ROD LAVER WAS ASKED HOW HE ADJUSTED HIS PLAY FROM A WOODEN TO A HIGHTECH FIBERGLASS RACKET HE RESPONDED THAT IT MADE NO DIFFERENCE HE SAID THAT TENNIS WAS PLAYED WITH THE EYES AND THAT HE COULD PLAY WITH A RUG BEATER IF NEED BE KEEPING ONE'S EYES FOCUSED ON THE BALL IS WHAT MR LAVER FELT WAS CRITICAL IT'S A CLEAR FOCUS ON YOUR BUSINESS WHATEVER IT MAY BE THAT MAKES FOR REAL STATEOFTHEART MANAGEMENT DON'T BE SEDUCED BY THOSE WHO WOULD DISTRACT YOU FROM THAT FOCUS MR FALVEY IS A WRITER AND SPEAKER LIVING IN LONDONDERRY NH HE WAS IN CHARGE OF MANAGEMENT DEVELOPMENT AT GILLETTE UNTIL HE FORMED HIS OWN COMPANY IN 1978 9305030008 930503 THE BEST SOLUTION FOR CROWDING OUT BY HENRY KAUFMAN THIS MONTH BOEING SUCCESSFULLY SOLD 175 MILLION OF 50YEAR DEBENTURES TO HELP FUND LONGTERM INVESTMENTS RESEARCH DEVELOPMENT AND BUSINESS ACQUISITIONS THE 50YEAR MATURITY OF BOEING'S BOND ISSUE IS A RARITY BUT ACCESS OF US FIRMS TO A HEALTHY LONGTERM CORPORATE BOND MARKET PROVIDES A DISTINCT ECONOMIC ADVANTAGE SINCE THE ABILITY TO MAKE LONGTERM COMMITMENTS AND TO FINANCE THEM GIVES A POWERFUL BOOST TO COMPETITIVE STRENGTH THIS HAS DIRECT RELEVANCE TO AN ISSUE UNDER DEBATE RIGHT NOW SHOULD THE US TREASURY BY ANY YARDSTICK THE LARGEST BORROWER IN THE CAPITAL MARKETS REVISE ITS DEBT MANAGEMENT PRACTICES AND ISSUE FEWER LONGERTERM SECURITIES MY ANSWER IS YES BUT NOT MAINLY FOR THE REASON TYPICALLY ADVANCED THAT IN SO DOING THE TREASURY COULD BORROW MORE CHEAPLY THIS IS UNDENIABLY TRUE AT THE MOMENT BECAUSE SHORTTERM INTEREST RATES ARE SO MUCH LOWER THAN LONGTERM RATES IT MAY OF COURSE CHANGE THE FUNDAMENTAL REASON THAT THE GOVERNMENT SHOULD CHANGE POLICIES IS THAT LESS TREASURY LONGTERM FINANCING WILL PROVIDE GREATER OPPORTUNITIES FOR THE PRIVATE SECTOR TO BORROW FOR VERY LONG MATURITIES THAT WILL STIMULATE BUSINESS TO MAKE LONGTERM COMMITMENTS IN THE FORM OF PLANTANDEQUIPMENT INVESTMENTS RESEARCH AND NEW PRODUCT DEVELOPMENT AS AT BOEING REDUCED LONGTERM GOVERNMENT BORROWING WILL ALSO OPEN UP BORROWING OPPORTUNITIES FOR STATE AND LOCAL GOVERNMENTS WHICH HAVE THE PRIMARY RESPONSIBILITY FOR BUILDING MUCH OF THE INFRASTRUCTURE ON WHICH A PRODUCTIVE PRIVATE ECONOMY DEPENDS INFRASTRUCTURE INVESTMENTS USUALLY HAVE VERY LONG ECONOMIC LIVES AND OUGHT TO BE FINANCED THROUGH LONGTERM BORROWING INCREASED ACCESS OF PRIVATESECTOR AND STATE AND LOCAL GOVERNMENT BORROWERS TO THE LONGTERM BOND MARKET WILL LET COMPANIES LENGTHEN THE MATURITY COMPOSITION OF THEIR DEBT WHICH HAS BECOME PROGRESSIVELY SHORTER OVER THE PAST DECADE OR SO THAT WILL REDUCE THEIR VULNERABILITY AND SHIFT RISK TO GOVERNMENT WHICH IS ABLE TO BEAR A GREATER SHARE BECAUSE A CUTBACK IN LONGTERM FINANCING BY THE US TREASURY WILL ENCOURAGE SOME FURTHER DECLINE IN LONGTERM BOND YIELDS IT WILL ALSO PROVIDE A BOOST TO THE STOCK MARKET A STRONGER STOCK MARKET WILL PERMIT MORE COMPANIES TO ISSUE NEW EQUITY AND REPAY SOME HIGHERCOST DEBT WHAT ABOUT THE ARGUMENTS OF THOSE WHO OPPOSE ANY CHANGE IN TREASURY DEBTMANAGEMENT PRACTICES IT IS TRUE THAT A SHIFT TOWARD SHORTTERM FINANCING MEANS GREATER RISK BUT THIS IS NOT A BAD THING IT WILL GIVE THE GOVERNMENT MORE OF A STAKE IN AVOIDING ECONOMIC POLICIES THAT INCREASE INFLATION BECAUSE A RISE IN INFLATION WILL LEAD TO HIGHER SHORTTERM INTEREST RATES AND THUS PAINFUL INCREASES IN DEBTSERVICING COSTS WE ARE ALL BETTER OFF WHEN THE GOVERNMENT DOES NOT BENEFIT FROM INFLATION AND SO IS MORE MINDFUL OF ITS ADVERSE CONSEQUENCES IT IS ARGUED THAT AN INCREASE IN SHORTERTERM FINANCING WILL DRIVE UP SHORTTERM YIELDS NEUTRALIZING THE ADVANTAGE THIS CRITICISM IS LARGELY ACADEMIC AT THE PRESENT TIME WHEN ECONOMIC RECOVERY IS MODERATE INFLATION IS RELATIVELY SUBDUED THE BROAD MONEY SUPPLY IS ACTUALLY FALLING AND THE FEDERAL RESERVE IS PURSUING AN ACCOMMODATIVE MONETARY POLICY ON THE QUESTION OF INTEREST RATES IN THE LONGER TERM MY JUDGMENT IS THAT THE ABSORPTION CAPACITY AT THE SHORT END OF THE MATURITY SPECTRUM IS FAR GREATER THAN AT THE LONG END THERE ARE MORE PARTICIPANTS WHEREAS THE LONG END IS DOMINATED BY A RELATIVELY SMALL NUMBER OF LARGE INSTITUTIONS SUCH AS PENSION FUNDS STATE AND LOCAL RETIREMENT FUNDS AND INSURANCE COMPANIES MANY OF WHICH ARE EXPERIENCING PRONOUNCED DECLINES IN NEW CASH INFUSIONS THE SHORT AND INTERMEDIATE END INCLUDES THOSE SAME INSTITUTIONS PLUS BANKS AND THRIFTS PLUS MANY FOREIGN PRIVATE AND PUBLIC INSTITUTIONS PLUS MONEY AND BOND MUTUAL FUNDS CATERING TO THE HOUSEHOLD SECTOR MOREOVER THE SHORT AND INTERMEDIATE SECTOR IS BROADER AND DEEPER TO BEGIN WITH HERE IS AN ILLUSTRATION SUPPOSE THAT THE TREASURY WERE TO CUT IN HALF NEW LONGTERM FINANCING SPLIT BETWEEN 10YEAR NOTES AND 30YEAR BONDS AND ASSUME THAT INSTEAD IT SIMPLY INCREASED THE NET ISSUANCE OF BILLS AND SHORT AND INTERMEDIATE NOTES TWO THREE AND FIVEYEAR MATURITIES THE PROPORTIONATE INCREASES IN THESE OFFERINGS WOULD BE A LITTLE UNDER 25 BUT AS A PERCENTAGE OF OUTSTANDING ISSUES OF COMPARABLE MATURITY THESE INCREASES WOULD BE QUITE SMALL THEY WOULD AMOUNT TO JUST 25 OF ALL EXISTING US TREASURY DEBT MATURING WITHIN FIVE YEARS PUT ANOTHER WAY WHAT IS A SIGNIFICANT PERCENTAGE REDUCTION IN THE SIZE OF LONGTERM OFFERINGS REPRESENTS A RELATIVELY MODERATE ADDITION TO SHORT AND INTERMEDIATE FINANCING AND A MODEST INCREMENT TO OUTSTANDING SHORT AND INTERMEDIATE ISSUES IT IS ARGUED THAT CUTTING BACK LONGTERM FINANCING WILL DISRUPT NORMAL PATTERNS OF SUPPLY AND DEMAND WITHIN THE GOVERNMENT BOND MARKET AND DIMINISH PREDICTABILITY THIS CRITICISM IMPLICITLY ASSUMES THAT THE MARKET IN US SECURITIES IS NARROW AND BRITTLE BUT THE GOVERNMENT BOND MARKET IS EXTRAORDINARILY RESILIENT IN TERMS OF BOTH DEALER CAPABILITIES AND DIVERSITY OF FINAL INVESTORS UNDER TODAY'S CIRCUMSTANCES MODERATE ECONOMIC EXPANSION DIMINISHED INFLATION AND A STILL HIGHLY INDEBTED PRIVATE SECTOR THE GOVERNMENT OUGHT TO GIVE ESPECIALLY HEAVY WEIGHT TO ALLOWING THE PRIVATE SECTOR MORE ROOM TO MANAGE ITS FINANCIAL AFFAIRS THE BEST WAY IS BY REDUCING THE SIZE OF THE BUDGET DEFICIT AND SOMEDAY PERHAPS IT WILL BUT IN THE MEANTIME IT CAN HELP BY CUTTING BACK NEW ISSUES OF LONGTERM US TREASURY SECURITIES MR KAUFMAN IS PRESIDENT OF HENRY KAUFMAN & CO A MONEY MANAGEMENT AND FINANCIAL CONSULTING FIRM 9305030007 930503 CREDIT MARKETS DEVELOPING A STRATEGY FOR MUNIS INTERMEDIATES ARE SEEN AS THE SOUNDEST BET TO COVER RATE RISKS BY TOM HERMAN STAFF REPORTER OF THE WALL STREET JOURNAL IS THIS A GOOD TIME TO BUY TAXFREE BONDS LONGTERM MUNICIPAL BONDS THOSE DUE IN 20 TO 30 YEARS NOW OFFER YIELDS THAT MAY LOOK VERY APPEALING TO HIGHINCOME INVESTORS FACING THE PROSPECT OF A BIG INCREASE IN TAXES BUT LONGTERM BONDS ARE ALSO THE MOST SENSITIVE TO INTERESTRATE CHANGES SINCE EARLY MARCH AN INCREASE OF ONLY ABOUT A QUARTER OF A PERCENTAGE POINT IN YIELDS ON SOME LONGTERM BONDS HAS SENT PRICES FALLING 125 FOR EACH 5000 FACE AMOUNT IF INTEREST RATES CONTINUE TO RISE AS SOME ANALYSTS FEAR PRICES OF LONGTERM BONDS WILL PLUNGE THAT DOESN'T MEAN INVESTORS HAVE TO GIVE UP ON TAXFREE INCOME THOUGH INSTEAD OF BUYING ONLY LONGTERM BONDS CONSIDER INTERMEDIATETERM MUNIS ESPECIALLY THOSE DUE IN ABOUT FIVE TO 10 YEARS SOME OF THESE BONDS NOW OFFER YIELDS THAT ARE WITHIN A PERCENTAGE POINT OF YIELDS ON LONGTERM TAXEXEMPT ISSUES AND PRICES OF INTERMEDIATETERM BONDS ARE MUCH LESS SENSITIVE TO INTERESTRATE SHIFTS INTERMEDIATES ALSO LOOK ATTRACTIVE COMPARED TO SHORTTERM MUNIS THOSE DUE IN A YEAR OR LESS FOR EXAMPLE MANY TAXFREE MONEY MARKET FUNDS WHICH INVEST IN SHORTTERM MUNIS NOW YIELD ONLY ABOUT 2 WE PARTICULARLY LIKE INTERMEDIATETERM MUNIS RIGHT NOW SAYS THOMAS J CONLIN PORTFOLIO MANAGER AT STRONG FUNDS IN MENOMONEE FALLS WIS RICHARD A CICCARONE SENIOR VICE PRESIDENT AT KEMPER SECURITIES INC IN CHICAGO AGREES THIS IS AN EXCELLENT TIME TO BUY FIVEYEAR TO 10YEAR MUNICIPAL BONDS HE SAYS THE INTERMEDIATE SECTOR PROVIDES THE MOST ATTRACTIVE WAY TO PICK UP HIGH YIELDS WITHOUT SIGNIFICANTLY INCURRING INCREASED INTERESTRATE VOLATILITY SOME DOUBLEARATED MUNIS YIELD FROM 34 IN TWO YEARS TO 555 IN 15 YEARS ACCORDING TO DELPHIS HANOVER CORP IN SOUTHBURY CONN SIMILARLY RATED BONDS DUE IN 30 YEARS YIELD 58 OR ONLY ONEQUARTER OF A PERCENTAGE POINT HIGHER INTERMEDIATETERM MUNIS NOW LOOK ESPECIALLY ATTRACTIVE COMPARED WITH TAXABLE BONDS LARGELY BECAUSE OF A HUGE FLOOD OF NEW STATE AND LOCAL GOVERNMENT ISSUES IN RECENT MONTHS ANALYSTS SAY FOR EXAMPLE TRIPLEARATED MUNIS DUE IN THREE YEARS NOW YIELD 365 OR ABOUT 87 OF THE 418 YIELD ON A COMPARABLE TREASURY NOTE LATE FRIDAY THAT PERCENTAGE IS WAY ABOVE THE AVERAGE MUNITREASURY YIELD RATIO OF 72 FROM 19871992 ACCORDING TO RB DAVIDSON III OF SANFORD C BERNSTEIN & CO LONGTERM BONDS AREN'T A SMART MOVE FOR INDIVIDUAL INVESTORS RIGHT NOW FOR ANOTHER REASON SAYS ROBERT MEREDITH CHAIRMAN OF MEREDITH MARTIN & KAYE A NEW YORK INVESTMENT ADVISORY FIRM MOST NEWLY ISSUED LONGTERM ISSUES CAN BE CALLED OR REDEEMED PRIOR TO THE SCHEDULED MATURITY DATE IN ABOUT 10 YEARS HE EXPLAINS IF INTEREST RATES DO DROP 30YEAR BONDS WILL BE CALLED LONG BEFORE THEY ARE DUE THAT WOULD SEND INVESTORS SCRAMBLING TO REINVEST THEIR PRINCIPAL AT RATES LOWER THAN WHAT THEY HAD EXPECTED TO RECEIVE FOR YEARS TO COME ONE STRATEGY FOR MAXIMIZING TAXEXEMPT YIELD WHILE MINIMIZING EXPOSURE TO INTERESTRATE CHANGES IS TO BUILD A MUNICIPALBOND LADDER BUILDING A LADDER OR LADDERING SIMPLY MEANS BUYING A VARIETY OF INDIVIDUAL BONDS SCHEDULED TO MATURE AT DIFFERENT INTERVALS SUCH AS TWO YEARS FOUR YEARS SIX YEARS EIGHT YEARS AND 10 YEARS JUST LIKE RUNGS ON A LADDER LADDERING PROVIDES SOME PROTECTION NO MATTER WHICH WAY INTEREST RATES MOVE IF RATES SURGE INVESTORS WILL GET BACK SOME OF THEIR MONEY AT REGULAR INTERVALS AND CAN REINVEST IT AT HIGHER YIELDS AND IF RATES FALL INVESTORS HAVE LOCKED AWAY AT LEAST SOME MONEY FOR LONGER PERIODS IT'S ALSO POSSIBLE TO BUY INTERMEDIATETERM MUNICIPAL BONDS THROUGH MUTUAL FUNDS BUT YOU HAVE TO BE SELECTIVE MOST INDIVIDUALS WHO BUY MUNI BOND FUNDS HAVE NO IDEA WHAT THE AVERAGE MATURITY OF THAT FUND IS AND THUS HOW MUCH INTERESTRATE RISK THEY ARE TAKING SAYS MR MEREDITH MANY GENERAL MUNI BOND FUNDS OWN LARGE AMOUNTS OF LONGTERM BONDS UNLESS A MUNI FUND SPECIFICALLY IDENTIFIES ITSELF AS SHORT OR INTERMEDIATE IT'S ALMOST CERTAINLY A LONGTERM FUND WARNS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS IN CHICAGO IF WE HAVE A STEEP RISE IN INTEREST RATES MR REKENTHALER SAYS YOU WILL FIND OUT THAT YOU WILL HAVE A LOT OF CAPITAL LOSSES THE MUNICIPAL BOND FUND YOU THOUGHT WAS TAME WILL TURN OUT TO BE A BEAR HE WARNS THERE ARE 49 INTERMEDIATETERM FUNDS TO CHOOSE FROM ACCORDING TO LIPPER ANALYTICAL SERVICES INC LIPPER SAYS THE SECTOR'S TOPPERFORMING FUND OVER THE PAST DECADE WAS VANGUARD GROUP'S MUNICIPAL INTERMEDIATETERM FUND ITS TOTAL RETURN WAS 15518 VANGUARD HAS THE ADDITIONAL ADVANTAGE OF BEING A NOLOAD FUND WHICH MEANS THERE ARE NO SALES CHARGES MUTUAL FUNDS OFFER DIVERSIFICATION AND PROFESSIONAL MANAGEMENT AS WELL AS LOW MINIMUM INVESTMENTS INDIVIDUAL MUNICIPAL BONDS TYPICALLY ARE SOLD IN MINIMUM AMOUNTS OF 5000 AMONG THE TAXEXEMPTS RECOMMENDED BY MR CICCARONE OF KEMPER SECURITIES ARE BONDS ISSUED RECENTLY BY PHOENIX ARIZ THESE 490 BONDS DUE IN 2002 NOW YIELD ABOUT 495 WHICH IS EQUIVALENT TO A FULLY TAXABLE YIELD OF 72 BASED ON THE CURRENT TOP FEDERAL TAX BRACKET OF 31 HE SAYS IF PRESIDENT CLINTON PERSUADES CONGRESS TO LIFT THE TOP TAX BRACKET TO 396 THE TAXABLEEQUIVALENT YIELD ON THOSE BONDS WOULD JUMP TO 82 HE SAYS THE PHOENIX BONDS ARE RATED DOUBLEA BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAPLUS BY STANDARD & POOR'S CORP MR CONLIN OF THE STRONG FUNDS RECENTLY PURCHASED SOME 59 VIRGINIA EDUCATION LOAN AUTHORITY BONDS DUE IN 2005 HE BOUGHT THEM AT PAR OR THEIR FULL FACE VALUE HE ALSO PURCHASED SOME GENERAL OBLIGATION BONDS OF THE DISTRICT OF COLUMBIA THESE 6 BONDS DUE 2007 YIELDED 610 GENERAL OBLIGATION BONDS ARE BACKED BY THE ISSUER'S FULL FAITH AND CREDIT THEY ARE DIFFERENT FROM REVENUE BONDS WHICH ARE BACKED BY THE REVENUES FROM A PROJECT MR CICARONE AND OTHERS RECOMMEND BONDS WITH HIGH CREDIT RATINGS ESPECIALLY PREREFUNDED MUNIS THOSE BACKED BY US TREASURY ISSUES FIVEYEAR PRERES NOW YIELD AROUND 43 EQUIVALENT TO A FULLY TAXABLE YIELD OF ABOUT 625 FOR INVESTORS IN THE 31 FEDERAL BRACKET MR CICCARONE SAYS AFTER A BRIEF RALLY EARLY IN THE MORNING TREASURY BOND PRICES SLUMPED ENDING A DISMAL WEEK WITH SIZABLE LOSSES ACTIVELY TRADED LONGTERM TREASURY BONDS SANK NEARLY 5/8 POINT OR ALMOST 625 FOR EACH 1000 FACE AMOUNT THE TREASURY'S BENCHMARK 30YEAR BONDS WERE QUOTED LATE IN THE DAY AT 102 15/32 DOWN FROM 103 1/32 LATE THURSDAY THEIR YIELD CLIMBED TO 692 FROM 687 THURSDAY AS RECENTLY AS APRIL 15 THESE BONDS YIELDED 672 THE BOND MARKET'S SETBACK STARTLED SEVERAL STRATEGISTS WHO THOUGHT THE ECONOMY'S RECENT SLUGGISHNESS WOULD HELP PERSUADE INVESTORS THAT INFLATION WILL REMAIN SUBDUED LEADING TO LOWER INTEREST RATES THE GOVERNMENT REPORTED THURSDAY THAT ECONOMIC GROWTH SLOWED SIGNIFICANTLY IN THE FIRST QUARTER THE ECONOMY EXPANDED AT AN ANEMIC ANNUAL RATE OF 18 ADJUSTED FOR INFLATION IN THE FIRST QUARTER COMPARED WITH A 47 CLIP IN LAST YEAR'S FOURTH QUARTER TRADERS THIS WEEK WILL BE ANXIOUSLY AWAITING THE GOVERNMENT'S APRIL EMPLOYMENT REPORT TO BE RELEASED FRIDAY ECONOMISTS GENERALLY EXPECT THE REPORT TO SHOW LITTLE OR NO CHANGE IN THE NATION'S CIVILIAN UNEMPLOYMENT RATE WHICH STOOD AT 7 IN MARCH THEY ALSO EXPECT ONLY A MILD INCREASE OF ABOUT 150000 OR 160000 IN THE NUMBER OF WORKERS ON NONFARM PAYROLLS WE EXPECT TO SEE ONLY A MODEST REBOUND IN EMPLOYMENT GROWTH TO BE REPORTED FOR APRIL FOLLOWING A WEATHERDEPRESSED DECLINE IN MARCH A SMITH BARNEY HARRIS UPHAM & CO REPORT SAID MUNICIPALBOND PRICES ALSO ROSE EARLY IN THE DAY BUT LATER FELL FINISHING MIXED MR CONLIN OF STRONG FUNDS SAID THERE WAS A SHARP AFTERNOON SELLOFF IN THE MUNICIPAL FUTURES MARKET MUNICIPAL BOND STRATEGISTS ARE BRACING FOR A LARGE VOLUME OF NEW ISSUES SOON IN THE CORPORATE MARKET MORE THAN 500 MILLION OF NEW HIGHYIELD HIGHRISK JUNK BONDS WERE SNAPPED UP BY INVESTORS FRIDAY ACCORDING TO DOW JONES CAPITAL MARKETS REPORT MANY INTERMEDIATETERM MUNICIPAL BONDS OFFER UNUSUALLY HIGH YIELDS COMPARED TO TAXABLE BONDS 9305030006 930503 TECHNOLOGY MICROSOFT PLANS TO MODIFY ITS SOFTWARE TO WORK BETTER WITH A LOTUS PROGRAM BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL MICROSOFT CORP IN A CRUCIAL CONCESSION TO ITS MOST BITTER RIVAL SAID IT WILL MODIFY ITS OWN SOFTWARE TO WORK BETTER WITH LOTUS DEVELOPMENT CORP'S NOTES PROGRAM LOTUS THE THIRD LARGEST SUPPLIER OF SOFTWARE FOR PERSONAL COMPUTERS LARGELY ON THE STRENGTH OF ITS MATURE SPREADSHEET BUSINESS CONSIDERS NOTES TO BE THE CORNERSTONE OF ITS GROWTH THE PROGRAM RELEASED IN LATE 1989 COMBINES ELECTRONIC MAIL DATABASE AND NETWORKING FEATURES IN A PC SMORGASBORD KNOWN AS GROUPWARE MICROSOFT HAD BEEN HOPING THAT NOTES WAS A TEMPORARY PHENOMENON THAT THEY COULD STAMP OUT SAID PATRICIA SEYBOLD A BOSTON COMPUTER ANALYST NOW MICROSOFT IS ADMITTING THE MARKET REALITY CUSTOMERS WANT NOTES SALES OF NOTES WHILE STILL JUST A FRACTION OF LOTUS'S NEARLY 1 BILLION IN ANNUAL REVENUE ARE EXPECTED TO TOP 50 MILLION THIS YEAR RISING FROM ALMOST NOTHING THREE YEARS AGO MICROSOFT'S DECISION TO ENABLE ITS APPLICATIONS SOFTWARE TO EXCHANGE DATA MORE EFFECTIVELY WITH NOTES IS AN ENDORSEMENT THAT WILL ACCELERATE THE ACCEPTANCE OF IT AMONG CUSTOMERS SAID JIM MANZI LOTUS'S CHIEF EXECUTIVE OFFICER MICROSOFT THE LARGEST SOFTWARE SUPPLIER CONCEDES IT IS REACTING TO THE STEADILY RISING INTEREST IN NOTES AND THAT ACCOMMODATING NOTES WILL KEEP IT FROM LOSING APPLICATIONS SALES TO LOTUS BOTH COMPANIES ARE INTENSE RIVALS IN SPREADSHEET WORDPROCESSING AND ELECTRONIC MAIL MARKETS WE DON'T WANT THERE TO BE ANY REASON FOR A CUSTOMER TO BUY LOTUS APPLICATIONS INSTEAD OF OURS SIMPLY BECAUSE THAT CUSTOMER IS USING NOTES SAID LEWIS LEVIN GENERAL MANAGER OF MICROSOFT'S SPREADSHEET BUSINESS UNIT MR LEVIN SAID MICROSOFT PLANS TO MAKE IT EASIER FOR USERS OF ITS APPLICATIONS TO LAUNCH AND RECEIVE MAIL VIA NOTES AND TO EXCHANGE DOCUMENTS WITH NOTES WITHOUT SACRIFICING SPECIAL FORMATTING FEATURES CREATED BY ITS WORD PROGRAM A NEW VERSION OF NOTES MAKES THESE IMPROVEMENTS POSSIBLE SAID STEWART ALSOP EDITOR OF INFOWORLD WHICH FIRST REPORTED ON MICROSOFT'S SHIFTING STANCE LOTUS WILL BEGIN SHIPPING THE NEW VERSION OF NOTES SHORTLY WHILE MAKING BUSINESS SENSE MICROSOFT'S EMBRACE OF NOTES STRIKES SOME ANALYSTS AS A STUNNING REVERSAL ESPECIALLY SINCE MICROSOFT ITSELF PLANS TO INTRODUCE PRODUCTS THAT ESSENTIALLY DUPLICATE THE FEATURES OF NOTES MICROSOFT'S POSITION FOR A LONG TIME WAS THAT NOTES WAS A BAD IDEA AND THE MARKET WOULD REJECT IT SAID JEFFREY TARTAR EDITOR OF SOFTLETTER AN INDUSTRY NEWSLETTER WITH GROUPWARE CATCHING ON BECAUSE IT ENABLES NETWORKS OF PCS TO SUPPORT THE COLLABORATIVE WORK STYLES MICROSOFT MAY NOW WANT TO ENDORSE NOTES AS A PRELUDE TO COOPTING IT THEY MAY BE THINKING THAT THE BEST WAY TO KEEP NOTES ISOLATED IN SPECIALIZED NICHES SAID MS SEYBOLD IS TO EMBRACE IT 9305030005 930503 CORPORATE PERFORMANCE REVIEW 1ST QUARTER 1993 COMPANIES' PROFITS ROSE FURTHER BUT SLOWDOWN SURPRISES ANALYSTS A WALL STREET JOURNAL NEWS ROUNDUP CORPORATE PROFITS CONTINUED TO CLIMB IN THE FIRST QUARTER OF THIS YEAR ALTHOUGH THE GAIN WASN'T AS LARGE AS THE PRIOR QUARTER'S FOR THE FIRST QUARTER 578 MAJOR CORPORATIONS REPORTED THAT NET INCOME ROSE TO A COMBINED 22 BILLION ACCORDING TO A WALL STREET JOURNAL SURVEY IN THE YEAREARLIER PERIOD COMPANIES HAD A NET LOSS OF 35 BILLION LARGELY REFLECTING CHARGES FOR ACCOUNTING CHANGES DICTATED BY THE FINANCIAL ACCOUNTING STANDARDS BOARD PERHAPS MORE IMPORTANT HOWEVER IS THE SIGN THAT PROFITS MOMENTUM HAS SLOWED EARNINGS BEGAN PICKING UP SHARPLY IN THE SECOND HALF OF LAST YEAR BUT FOR THE 1993 FIRST QUARTER COMPANIES REPORTED THAT AFTERTAX EARNINGS FROM CONTINUING OPERATIONS ROSE 19 COMPARED WITH A 57 GAIN FOR THE 1992 FOURTH QUARTER AND A 27 GAIN FOR THE THIRD QUARTER THE PROFIT SLOWDOWN WAS A SURPRISE TO MANY ANALYSTS WHO HAD BEEN LOOKING FOR STRONG EARNINGS GAINS THROUGH THIS YEAR A MAJOR REASON FOR THE SLOWDOWN WAS UNUSUALLY POOR WEATHER ESPECIALLY THE MARCH BLIZZARD WHICH PUT A DAMPER ON BUSINESS IN THE QUARTER HOUSING STARTS FELL 46 IN MARCH COMMENTS DAVID H RESLER OF NOMURA SECURITIES INTERNATIONAL STARTS OF SINGLEFAMILY HOMES FELL BELOW THE ONE MILLION ANNUAL RATE FOR THE FIRST TIME SINCE JULY COMMERCIAL CONSTRUCTION ALSO DROPPED THE MARCH BLIZZARD KEPT STORES CLOSED AND CONSUMERS HOME SHARPLY REDUCING RETAIL SALES THE COMMERCE DEPARTMENT IN ITS FIRST OFFICIAL ESTIMATE OF JANUARYMARCH GROWTH LAST WEEK FIGURED THAT THE INFLATIONADJUSTED GROSS DOMESTIC PRODUCT ROSE BY ONLY 18 IN THE QUARTER DOWN FROM THE BRISK 47 GAIN IN THE PRIOR PERIOD ECONOMISTS EXPECT GDP TO GROW AT A SLIGHTLY FASTER RATE THROUGH 1993 WITH THE AVERAGE FOR THE YEAR WINDING UP AT ABOUT 33 ACCORDING TO THE MOST RECENT ESTIMATE THIS TREND ANALYSTS SAY SHOULD SUPPORT A CONTINUING GROWTH IN PROFITS STEPHEN S ROACH AN ECONOMIST AT MORGAN STANLEY & CO IS TYPICAL WHEN HE SAYS THE SLOWDOWN IN EARLY 1993 HAS BEEN TEMPORARY MR ROACH SAYS HE LOOKS FOR A STEADY EXPANSION OF CORPORATE EARNING POWER THROUGH THE REST OF THIS YEAR AMONG INDUSTRY GROUPS AEROSPACE CONCERNS AND BROKERAGE FIRMS SHOWED SURPRISINGLY STRONG GROWTH AUTO MAKERS POSTED IMPROVED EARNINGS WHILE COMPUTER COMPANIES HAD MIXED RESULTS THE AUTO INDUSTRY'S BIG THREE REPORTED IMPROVEMENTS FROM YEAREARLIER RESULTS IN THE FIRST QUARTER BEFORE TAKING HUGE CHARGES RELATED TO FUTURE RETIREE BENEFITS GENERAL MOTORS AND FORD MOTOR RECOGNIZED THOSE MULTIBILLION DOLLAR CHARGES LAST YEAR EXCLUDING THE CHARGES FORD SHOWED A YEAROVERYEAR PROFIT GAIN WHILE GM REVERSED A RESTATED YEAREARLIER LOSS CHRYSLER HOWEVER TOOK A 47 BILLION CHARGE IN THE FIRST QUARTER LEAVING THE AUTO MAKER IN THE RED FOR THE QUARTER AND A LOSS IS EXPECTED FOR THE YEAR EXCLUDING THE CHARGE CHRYSLER POSTED A PROFIT THAT REVERSED A YEAREARLIER LOSS STRONGER US DEMAND FOR CARS AND TRUCKS HELPED THE BIG THREE IMPROVE THEIR RESULTS THE AUTO MAKERS ALSO REDUCED THEIR RELIANCE ON LESSPROFITABLE SALES OF VEHICLES TO FLEET OPERATORS AND THEY SPENT LESS ON SALES INCENTIVES PER VEHICLE AS THE COMPANIES' PRODUCTS CONTINUED TO ENJOY A SIGNIFICANT PRICE ADVANTAGE OVER JAPANESEMADE VEHICLES ANALYSTS SAY THOSE FACTORS AS WELL AS BEEFED UP PRODUCTION SCHEDULES SHOULD PRODUCE A ROBUST SECOND QUARTER FOR THE BIG THREE AS THE AUTO MAKERS CONTINUE TO PUSH HIGHMARGIN PRODUCTS SUCH AS LUXURY SPORT UTILITY VEHICLES AND FULLSIZE PICKUP TRUCKS BUT FOR FORD AND GM A WEAK EUROPEAN ECONOMY IS STILL EXPECTED TO CREATE PROBLEMS FOR OVERSEAS OPERATIONS BROKERAGE FIRMS POSTED SURPRISINGLY STRONG EARNINGS FOR THE FIRST QUARTER THANKS TO THE RECORD ISSUANCE OF NEW STOCK AND BOND OFFERINGS AND CONTINUED HEAVY TRADING BY INDIVIDUAL INVESTORS THE EARNINGS AT SEVERAL SECURITIES FIRMS INCLUDING MERRILL LYNCH AND BEAR STEARNS FAR OUTPACED ANALYSTS' FORECASTS THE RESULT RECORD PRETAX PROFIT OF MORE THAN 2 BILLION FOR THE NATION'S BROKERAGE FIRMS IN THE QUARTER SOME ANALYSTS SAY PAINEWEBBER DESPITE A DROP IN NET INCOME POSTED A RECORD PRETAX PROFIT MERRILL'S RECORD PROFIT CAME EVEN AS IT TOOK A 103 MILLION PRETAX CHARGE FOR SUBLETTING OFFICE SPACE IT WASN'T USING IN ITS NEW YORK HEADQUARTERS NOT ALL FIRMS PROSPERED HOWEVER SALOMON WAS BUFFETED BY AN 89 MILLION LOSS IN ITS FLAGSHIP SALOMON BROTHERS UNIT STEMMING FROM BAD BONDTRADING BETS THE WILD CARD FOR MANY BROKERS THEIR ABILITY TO PROSPER FROM LOW INTEREST RATES AN UNUSUALLY LARGE GAP BETWEEN SHORT AND LONGTERM INTEREST RATES ALLOWED FIRMS TO MAKE MONEY ON THE DIFFERENCE BETWEEN THE RATE THEY PAID TO BORROW BILLIONS OF DOLLARS AND THE HIGHER RATES THEY RECEIVED ON STOCKPILES OF LONGTERM BOND HOLDINGS REVENUE FROM NET INTEREST AND DIVIDENDS ROSE 29 AT MERRILL AND 12 AT PAINEWEBBER EVEN AT SALOMON NET INTEREST INCOME SURGED 31 TO 14 BILLION ANALYSTS SAY THE BROKERAGEPROFIT RALLY NOW ENTERING ITS THIRD YEAR WILL REMAIN ROBUST ONLY AS LONG AS INTEREST RATES CONTINUE TO DECLINE BRUTAL PERSONALCOMPUTER PRICE WARS AND A LIMP EUROPEAN MARKET CONTINUED TO PUMMEL COMPUTER COMPANIES AND OVERSHADOWED SOME STRONG EARNINGS GAINS MOREOVER BOTH NEGATIVE TRENDS SHOW NO SIGNS OF ABATING IN THE SECOND QUARTER APPLE AND COMPAQ BOASTED GAINS IN MARKET SHARE AND COMPAQ'S REVENUE AND PROFIT SOARED PARTLY BECAUSE OF A LOWER TAX RATE BUT ANALYSTS WERE ALARMED BY STRIKING SLIDES IN BOTH COMPANIES' PROFIT MARGINS ONE CALLED COMPAQ'S GAINS A PYRRHIC VICTORY DISKDRIVE SUPPLIER SEAGATE ALSO CITED PLUNGING PRICES IBM SHOWED A SOLID COMEBACK IN PCS BUT THAT WAS OVERWHELMED BY THE CONTINUING COLLAPSE OF ITS MAINFRAME BUSINESS AN ACCOUNTING CHANGE ADDED 19 BILLION TO ITS 1992 FIRSTQUARTER PROFITS THE STAGGERING GIANT WARNED THAT NO TURNAROUND IS IN SIGHT AND ITS NEW CHAIRMAN LOUIS GERSTNER SIGNALED THAT FURTHER LAYOFFS ARE IMMINENT UNISYS DIGITAL AND SUN ALL CITED WEAKNESS IN EUROPE IN REPORTING SPOTTY RESULTS WALL STREET APPLAUDED COSTCUTTING THAT NARROWED DIGITAL'S LOSS BUT WORRIED THAT A 6 REVENUE GAIN CAME CHIEFLY FROM CURRENCYEXCHANGE RATES UNISYS ALSO HAD SAGGING REVENUE AND OPERATING PROFIT ROSE MERELY 18 EXCLUDING ACCOUNTING CHANGES AND A ONETIME ITEM WHILE SALES SLUMPED IN THE AEROSPACE INDUSTRY FIRSTQUARTER EARNINGS NONETHELESS PROVED STRONG OVERALL AS DEFENSE COMPANIES BENEFITED FROM ASSET SALES COSTCUTTING AND IMPROVED RETURNS ON MATURE PROGRAMS GENERAL DYNAMICS LED THE FIELD HELPED BY THE SALE OF ITS JETFIGHTER DIVISION MCDONNELL DOUGLAS WHICH HAS STRUGGLED WITH COST OVERRUNS FROM ITS C17 MILITARY TRANSPORT CHALKED UP RECORD PROFIT WHILE IT TRIMMED ITS DEBT BY 287 MILLION COMPANY MANAGERS VOWED THERE IS IMPROVING PERFORMANCE AHEAD YEAREARLIER RESULTS SHOWED A HUGE LOSS BECAUSE OF AN ACCOUNTING CHANGE NORTHROP WHICH IS WRINGING IMPROVED PROFITS FROM ITS B2 BOMBER AND F/A18 FIGHTER CONTRACTS SHOWED A PROFIT GAIN DESPITE AN EXTRAORDINARY CHARGE EXCLUDING ACCOUNTING CHANGES MARTIN MARIETTA MANAGED A 24 EARNINGS INCREASE WHILE LOCKHEED PRODUCED A 15 PROFIT RISE ON HIGHER SALES FROM THE JETFIGHTER BUSINESS IT BOUGHT FROM GENERAL DYNAMICS BOEING WHICH RELIES SUBSTANTIALLY ON THE COMMERCIAL JET MARKET SAW ITS SALES DROP 17 WHILE EARNINGS SLUMPED 23 EXCLUDING YEAREARLIER ACCOUNTING CHANGES HERE ARE THE FIRSTQUARTER PROFITS FOR VARIOUS INDUSTRY GROUPS AND COMPARISONS WITH THE YEAREARLIER QUARTER WHEN INDIVIDUAL COMPANIES REPORT FOR THREEMONTH PERIODS OTHER THAN CALENDAR QUARTERS THE NEAREST COMPARABLE PERIODS ARE USED IN ALL THE TABLES 000S ARE OMITTED STEELMAKERS GENERALLY NARROWED THEIR LOSSES IN THE FIRST QUARTER AIDED BY A HIGHER LEVEL OF SHIPMENTS PRICES WHILE IMPROVING REMAINED BELOW YEAREARLIER LEVELS ARMCO'S LOSS INCLUDED A CHARGE OF 3044 MILLION TO ADOPT NEW ACCOUNTING STANDARDS ANALYSTS THINK SOME OF THE STRONGER STEELMAKERS COULD BREAK EVEN IN THE SECOND QUARTER MEANTIME STEEL MINIMILLS AND MANY SPECIALTY STEELMAKERS REMAINED PROFITABLE MOST ALUMINUM COMPANIES SUFFERED LOSSES IN THE QUARTER AS RESULTS CONTINUED TO DETERIORATE BECAUSE OF LOWER FABRICATEDALUMINUM PRICES ALUMINUM CO OF AMERICA MANAGED A PROFIT BUT IT OWED THIS TO ITS NONALUMINUM BUSINESS AN OVERSUPPLY OF METAL CONTINUES TO DEPRESS PRICES AND BLOAT INVENTORY WHICH IS EXPECTED TO MAKE IT DIFFICULT FOR COMPANIES TO POST SECONDQUARTER PROFITS DESPITE A SEASONAL BOOST IN DEMAND FOREST PRODUCTS COMPANIES WITH STRONG TIMBER HOLDINGS CONTINUED TO DO WELL IN THE QUARTER TIMBER SUPPLIES REMAINED TIGHT WITH MUCH OF THE FEDERAL TIMBERLAND IN THE NORTHWEST STILL OFF LIMITS BECAUSE OF SPOTTED OWL RESTRICTIONS ONE BIG CONCERN FIRSTQUARTER HOUSING STARTS FELL BELOW ANALYSTS' EXPECTATIONS LEAVING INVENTORIES GLUTTED AND DEPRESSING PRICES FROM A HIGH IN MIDMARCH LINDA LIEBERMAN OF BEAR STEARNS & CO SAYS BAD WEATHER KEPT DOWN NEWHOME CONSTRUCTION THE PAPER INDUSTRY'S SLUMP NOW IN ITS FOURTH YEAR CONTINUED TO HOLD BACK EARNINGS OF BIG FOREST PRODUCTS COMPANIES SUCH AS BOISE CASCADE AND POTLATCH ANALYSTS ARE MILDLY OPTIMISTIC THAT EARNINGS COULD START TURNING AROUND LATER THIS YEAR OR EARLY IN 1994 RESULTS FOR CHEMICAL COMPANIES WERE MIXED OPERATING RESULTS REMAINED DEPRESSED AT DOW CHEMICAL MONSANTO AND OTHERS MAINLY BECAUSE OF THE EFFECT OF THE ECONOMIC SLOWDOWN ACROSS MUCH OF EUROPE AND SLACK DRUG SALES DOW'S OPERATING RESULTS WHILE DOWN EXCEEDED ANALYSTS' EXPECTATIONS AGGRESSIVE COSTCUTTING HELPED PUSH UNION CARBIDE'S OPERATING EARNINGS FRACTIONALLY HIGHER WHILE DUPONT'S HIGHER OPERATING PROFIT STEMMED LARGELY FROM COSTCUTTING AND BETTERTHANEXPECTED INCOME FROM ITS CONOCO OIL DIVISION YEAREARLIER COMPARISONS ON NET INCOME WERE SKEWED AT MANY COMPANIES BY ACCOUNTING CHANGES FOR THE 1992 FIRST QUARTER DUPONT FOR INSTANCE HAD CHARGES OF 48 BILLION PROFITABILITY IMPROVED FOR MOST BIG OIL COMPANIES IN THE WAKE OF COSTCUTTING SHARPLY HIGHER US NATURAL GAS PRICES AND A SMALLER RISE IN WORLDWIDE OIL PRICES PETROCHEMICAL PROFITS CONTINUED TO SLUMP AT MOST COMPANIES BECAUSE OF THE SLUGGISH WORLD ECONOMY AND AN OVERSUPPLY ALTHOUGH AMOCO FOR ONE SAYS IT MAY SEE THE BEGINNING OF A RECOVERY IN ITS CHEMICAL OPERATIONS GASOLINE REFINING AND MARKETING WAS GENERALLY WEAK INTERNATIONALLY AND IN MOST OF THE US IT WAS RELATIVELY STRONG ON THE WEST COAST HOWEVER BENEFITING ATLANTIC RICHFIELD WHICH SELLS PETROLEUM PRODUCTS ONLY IN THE WEST MOST COMPANIES HAD NET LOSSES IN THE YEAREARLIER QUARTER FROM ACCOUNTING CHANGES BUT OPERATING PROFIT ROSE SUBSTANTIALLY THE 1992 QUARTER WAS CONSIDERED TO BE A WEAK ONE HOWEVER AND THE IMPROVEMENT WAS EXPECTED EXXON THE NATION'S BIGGEST OIL COMPANY WAS AN EXCEPTION IT HAD A STRONG QUARTER A YEAR EARLIER AND REPORTED FLAT OPERATING PROFIT UNOCAL TOOK A LARGE ACCOUNTING CHARGE THIS YEAR WHILE IT HAD A GAIN A YEAR EARLIER THE QUARTER WAS ANOTHER WEAK ONE FOR DRILLING AND SERVICE COMPANIES AS DRILLING ACTIVITY IN THE US HOVERED AROUND RECORD LOWS AND FOREIGN DRILLING SLOWED IN THE US A TAX CREDIT THAT HAD SPURRED GAS DRILLING RAN OUT AND DEPRESSED ACTIVITY EVEN FURTHER BUT THE SUSTAINED SURGE IN NATURAL GAS PRICES TO WELL ABOVE 2 PER THOUSAND CUBIC FEET THIS YEAR HAS BOOSTED STOCK PRICES OF MANY SERVICE COMPANIES AND DRILLERS ON THE EXPECTATION THAT RIG ACTIVITY WILL PICK UP NATURALGAS PIPELINE PROFITS ROSE REFLECTING BOTH STRENGTHENED PRICES AND HIGHER VOLUMES OF GAS MANY CUSTOMERS RUSHED TO REPLENISH INVENTORIES AS UNSEASONABLY COLD WEATHER IN THE MIDWEST LINGERED IN LATE MARCH THE EXCESS OF PIPELINE CAPACITY IN SOME MARKETS WAS OFFSET BY DEMAND THAT RESULTED FROM CUSTOMER INVENTORIES FALLING TO THEIR LOWEST LEVELS SINCE 1979 THUS SOME PIPELINES WERE ABLE TO RAISE THEIR RATES FOR TRANSMITTING GAS OWNED BY OTHERS MOST PIPELINES HAVE GRADUALLY MOVED AWAY FROM ACTING AS A MERCHANT BY BUYING AND SELLING MUCH OF THE GAS THEY MOVE THE RAIL GROUP BENEFITING FROM COST CUTS AND INDUSTRIAL FREIGHT GAINS POSTED SLIGHTLY HIGHER EARNINGS DESPITE SEVERE WEATHER AND WEAKNESS IN COAL SHIPMENTS EFFICIENCY MEASURES RAISED BURLINGTON NORTHERN'S EARNINGS ABOVE ANALYSTS' ESTIMATES EXCLUDING CHARGES FOR ACCOUNTING CHANGES EARNINGS ROSE 13 AT UNION PACIFIC AND 21 AT CONRAIL SANTA FE PACIFIC BOOSTED EARNINGS 33 ADJUSTED FOR SPECIAL ITEMS WEAKNESS IN COAL SHIPMENTS AND A COAL STRIKE REDUCED EARNINGS AT CSX THE COMPANY HAD A RESTRUCTURING CHARGE OF 61 MILLION IN THE RECENT QUARTER NORFOLK SOUTHERN'S EARNINGS WERE FLAT EXCLUDING A LARGE ACCOUNTING GAIN ANALYSTS EXPECT SECONDQUARTER RAIL EARNINGS TO RISE FROM THE YEAREARLIER PERIOD WHICH WAS HURT BY A TWODAY NATIONAL RAIL STRIKE AMONG TRUCK COMPANIES RATE DISCOUNTING CONTINUED AMID VIGOROUS COMPETITION FOR LESSTHANTRUCKLOAD SHIPMENTS YELLOW CORP WAS HURT BY SEVERE WEATHER HIGHER FUEL PRICES AND COMPETITIVE PRESSURES CONSOLIDATED FREIGHTWAYS SWUNG TO A PROFIT FROM A YEAREARLIER LOSS WHICH INCLUDED A 70 MILLION CHARGE HELPED BY STRENGTH IN ITS REGIONAL TRUCK UNITS AND IMPROVEMENT AT ITS AIR FREIGHT CONCERN ANALYSTS EXPECT SECONDQUARTER INCOME TO RISE WITH IMPROVING FREIGHT VOLUMES THE EARNINGS OUTLOOK FOR AIRFREIGHT COURIERS IMPROVED EVEN THOUGH DOMESTIC CUSTOMERS CONTINUED TO OPT FOR LOWERMARGIN AFTERNOON OR TWODAY DELIVERIES FEDERAL EXPRESS CONTINUED TO NARROW ITS INTERNATIONAL LOSSES BUT THE COMPANY LOWERED ITS COST PER DOMESTIC PACKAGE ONLY 4 WHICH DIDN'T MATCH THE 6 DECLINE IN REVENUE PER PACKAGE AIRBORNE EXPRESS SUCCEEDED IN LOWERING ITS OVERALL COST PER PACKAGE 11 MATCHING A STEEP 10 DECLINE IN REVENUE PER PACKAGE THE INCREASE IN DEMAND FOR HEAVY AND MEDIUM TRUCKS HAS BEEN UNDER WAY FOR NEARLY A YEAR AND AGAIN FUELED BETTER EARNINGS FOR TRUCK MANUFACTURERS AND THEIR SUPPLIERS THE TREND SHARPLY BOOSTED EARNINGS AT PACCAR CUMMINS AND EATON CUMMINS'S YEAREARLIER QUARTER INCLUDED A 251 MILLION CHARGE TO REFLECT AN ACCOUNTING CHANGE WHILE EATON'S INCLUDED A 274 MILLION SIMILAR CHARGE A MODERATE UPTURN IN THE US HEAVY MACHINERY MARKET INCREASED SUBSTANTIALLY IN THE LATEST QUARTER SURPRISING ANALYSTS WITH ITS STRENGTH AND MARKING WHAT'S THOUGHT TO BE THE INITIAL STAGE OF A FULLSCALE REBOUND CATERPILLAR'S EARNINGS TOPPED EXPECTATIONS DESPITE CONTINUED WEAKNESS IN EUROPE AND JAPAN AS THE COMPANY SAW INCREASES IN ALL OF ITS LINES CATERPILLAR'S YEAREARLIER RESULTS REFLECTED THE ECONOMY'S WEAKNESS AND WERE FURTHER HURT BY A STRIKE AND BY A 222 BILLION CHARGE FOR AN ACCOUNTING CHANGE CLARK EQUIPMENT SAID DOMESTIC DEMAND SHOWED OVERALL IMPROVEMENT IN THE LATEST QUARTER AND THE COMPANY SAID IT IS CAUTIOUSLY OPTIMISTIC ABOUT THE REMAINDER OF THE YEAR HOMEBUILDERS REPORTED GENERALLY IMPROVED EARNINGS AS LOW INTEREST RATES AND HIGHER CONSUMER CONFIDENCE HELPED BUYING DEMAND ALTHOUGH THE HOUSING MARKET HAS BEEN CONSTRAINED BY BAD WEATHER AND HIGH LUMBER PRICES COMPANIES EXPECT CONTINUED IMPROVEMENT IN THE CURRENT QUARTER PUBLICLY HELD BUILDERS BENEFITED FROM A RESTORATION OF DEMAND BECAUSE OF A DROP IN MORTGAGE INTEREST RATES TO THEIR LOWEST LEVEL IN TWO DECADES AND GENERALLY STRONG CONFIDENCE AMID A SLOWLY REVIVING ECONOMY AS THEY HAVE THROUGH MUCH OF THIS HOUSING RECOVERY THE BIG BUILDERS CONTINUED TO GAIN MARKET SHARE AT THE EXPENSE OF LESSCAPITALIZED COMPETITORS MOST RETAILERS WHOSE FISCAL FIRST QUARTERS DIDN'T CONCLUDE UNTIL THE END OF APRIL HAVEN'T YET REPORTED THEIR RESULTS BUT ANALYSTS EXPECT SOFTER PROFITS AND SOME LOSSES THE QUARTER IS TRADITIONALLY THE WEAKEST OF THE YEAR FOR THE GROUP WINTER STORMS THAT HIT THE EAST COAST AND MIDWEST COMBINED WITH CONSUMER TREPIDATION OVER THE POSSIBILITY OF HIGHER TAXES DROVE DOWN SALES AND PROMPTED ANALYSTS TO LOWER THEIR EARNINGS FORECASTS SECONDQUARTER PROFITS ARE EXPECTED TO LARGELY HINGE ON WHETHER CONSUMERS SHAKE OFF THEIR WORRIES OVER THE ECONOMY KMART HAS SAID ITS EARNINGS WILL BE LOWER FOR THE FIRST QUARTER AND SOME ANALYSTS EXPECT DAYTON HUDSON AND GAP INC TO REPORT A DECLINE IN PROFIT MEANWHILE ANALYSTS EXPECT HEALTHY GAINS FROM MAY AND JC PENNEY MAY HAS BEEN AN EFFECTIVE COSTCUTTER AND PENNEY HAS SUCCEEDED THROUGH CHANGING ITS MERCHANDISE MIX TO MORE PROFITABLE LINES ANALYSTS SAY SEARS WHICH REPORTS ON A CALENDARYEAR BASIS POSTED A RECORD FIRSTQUARTER PROFIT FUELED BY GAINS IN ITS INSURANCE AND FINANCIALSERVICES BUSINESSES THE MERCHANDISE GROUP CONTRIBUTED 636 MILLION BUT ALL OF THAT PROFIT CAME FROM ITS SEARSCHARGE CREDIT BUSINESS AS THE COMPANY LOST 496 MILLION IN ITS STORE OPERATIONS THE 1992 QUARTER INCLUDED A CHARGE OF 187 BILLION FOR ACCOUNTING CHANGES HOTEL AND CASINO COMPANIES SHOWED SOME OPERATING GAINS DESPITE POOR WEATHER MARRIOTT'S LODGING OPERATIONS SHOWED PARTICULAR STRENGTH WHILE HILTON'S HOTELS CONTINUED TO LAG BEHIND GAINS IN THE COMPANY'S CASINO OPERATIONS MIRAGE RESORTS SUFFERED FROM BAD LUCK AT THE GAMBLING TABLES ALTHOUGH CASINO REVENUE WAS AIDED BY SOLID GAINS IN SLOT OPERATIONS RESTAURANTS REPORTED A MOSTLY SOLID QUARTER ALTHOUGH SALES WERE AFFECTED IN MANY REGIONS BY MARCH'S BAD WEATHER SHONEY'S NET INCOME JUMPED AS THE COMPANY RAISED MENU PRICES AND BENEFITED FROM LOWER INTEREST RATES ON ITS BANK LOANS AT TCBY ENTERPRISES SAMESTORE SALES FOR COMPANYOWNED AND FRANCHISED UNITS WERE DOWN 2 DESPITE MCDONALD'S GAIN EARNINGS WERE PULLED DOWN BY HIGHER PRICES FOR BEEF AND PAPER PRODUCTS WEAK FOREIGN CURRENCIES AND POOR WEATHER AMONG RECREATIONAL PRODUCTS CONCERNS KODAK'S LOSS REFLECTED A ONETIME CHARGE OF 203 BILLION FOR AN ACCOUNTING CHANGE EXCLUDING CHARGES THE COMPANY'S EARNINGS ROSE 3 TOY MAKERS POSTED MIXED RESULTS REFLECTING A TENDENCY AMONG RETAILERS TO ORDER CONSERVATIVELY AND A PREFERENCE FOR HIGHLY PROMOTED TOYS HASBRO AND MATTEL WHICH WIELD BIG ADVERTISING BUDGETS HAD STRONG EARNINGS AND SALES GROWTH BUT FISHERPRICE REPORTED A LOSS ON DECLINING SALES RETAILERS HAVE GROWN JUMPY AFTER SALES OF CERTAIN TOY LINES SOFTENED IN 1992 AND SEVERAL ORDERS HAD TO BE CANCELED RETAILER CAUTION IS EXPECTED TO CONTINUE THROUGH THE SECOND QUARTER BROADCASTING COMPANIES ARE BEGINNING TO SEE SIGNS THAT NATIONAL ADVERTISING SPENDING MAY BE PICKING UP EARNINGS AT CAPITAL CITIES/ABC WERE SHARPLY HIGHER ON THE STRENGTH OF IMPROVED ADVERTISING REVENUE AT THE ABC NETWORK BEFORE A ONETIME CHARGE AND THE EFFECT OF ACCOUNTING CHANGES IN THE 1992 QUARTER NEWSPAPER COMPANIES REPORTED MIXED RESULTS AS SOME LARGE PUBLISHERS CONTINUED TO WRESTLE WITH ADVERTISING SOFTNESS AT THEIR METROPOLITAN PAPERS GANNETT WITH ITS WIDELY DISPERSED PAPERS SHOWED THE STRENGTH OF RENEWED ADVERTISING GROWTH AT ITS LOCAL PAPERS AND SIGNIFICANT GROWTH IN AD PAGES AT ITS NATIONAL PAPER USA TODAY EXCLUDING CHARGES THE NEWSPAPER AND BROADCAST CONCERN'S EARNINGS GREW 22 BUT TIMES MIRROR HAS BEEN AFFECTED BY CONTINUED SOFTNESS IN AD REVENUE AT ITS PAPERS IN LOS ANGELES AND ON THE EAST COAST YEAREARLIER RESULTS INCLUDED A 1234 MILLION ONETIME CHARGE RELATED TO STAFF REDUCTIONS PROFIT FROM CONTINUING OPERATIONS FELL SLIGHTLY MOST MAJOR AIRLINE COMPANIES WHILE CONTINUING TO SHOW LOSSES REPORTED RESULTS THAT WERE BETTER THAN EXPECTED AS THE STRUGGLING INDUSTRY BEGAN TO BENEFIT FROM RECENT CUTS IN CAPACITY MORE RATIONAL TICKET PRICING AND AN INCREASE IN PASSENGER TRAFFIC CARRIERS SUCH AS AMR PARENT OF AMERICAN AIRLINES SHOWED SIGNS THAT THEY WERE HEADED TOWARD A LONGAWAITED COMEBACK AFTER SLASHING 300 MILLION IN COSTS FROM ITS 1993 BUDGET AND ANNOUNCING PLANS TO GROUND 25 DC10 WIDEBODIES AND FURLOUGH AS MANY AS 600 PILOTS AND 450 MECHANICS BEFORE YEAR END AMERICAN ENHANCED ITS ABILITY TO BENEFIT FROM AN UPTURN IN DOMESTIC TRAFFIC AMR'S YEAREARLIER LOSS INCLUDED A 460 MILLION CHARGE FOR ACCOUNTING CHANGES DELTA AIR LINES' LOSS INCLUDED A ONETIME RESTRUCTURING CHARGE OF 825 MILLION UNLIKE ITS COMPETITORS DELTA HASN'T TAKEN THE HEAVY CHARGES FOR ACCOUNTING CHANGES YET USAIR GROUP'S YEAREARLIER RESULTS INCLUDED A 628 MILLION CHARGE FOR ACCOUNTING CHANGES EXCLUDING A 540 MILLION YEAREARLIER CHARGE UAL'S LOSS WIDENED THE UNITED AIRLINES PARENT HAS THREATENED TO MAKE STEEPER WORKFORCE AND CAPACITY CUTS THAN IT ORIGINALLY PLANNED AFTER ITS TWO MAJOR UNIONS TURNED DOWN ITS REQUEST FOR GIVEBACKS SOUTHWEST AIRLINES GARNERED MORE ENVY FROM ITS COMPETITORS CONTINUING TO STAND OUT AS THE ONLY MAJOR US CARRIER WITH THE ABILITY TO OPERATE AT A PROFIT IN RECENT YEARS APPAREL MANUFACTURERS POSTED MIXED RESULTS IN THE SEASONALLY SLOW FIRST QUARTER MAKERS OF JEANS AND OTHER INEXPENSIVE CLOTHES CONTINUED TO OUTPERFORM FASHION MANUFACTURERS AS CAUTIOUS SHOPPERS FOCUSED ON BARGAINS SPRINGS INDUSTRIES' LOSS REFLECTED A 725 MILLION CHARGE FOR ACCOUNTING CHANGES LIZ CLAIBORNE'S PROFIT DROP REFLECTED CUTBACKS IN THE COMPANY'S APPAREL SHIPMENTS TO RETAILERS AMONG FOOD CONCERNS KELLOGG POSTED A 1 INCREASE IN CEREAL SALES VOLUME DESPITE RECESSION IN SEVERAL KEY OVERSEAS MARKETS HERSHEY FOODS' FIGURES REFLECTED DOUBLEDIGIT SALES GAINS IN US CHOCOLATE AND PASTA PLUS A GAIN ON THE SALE OF ITS STAKE IN A SCANDINAVIAN CANDY COMPANY ITS RESULTS INCLUDED A NONCASH CHARGE OF 1039 MILLION ASSOCIATED WITH ACCOUNTING CHANGES DOLE FOODS BENEFITED FROM AN IMPROVED VEGETABLES MARKET AND A GAIN RELATED TO THE SPINOFF OF ITS RESIDENTIAL REAL ESTATE UNIT CPC INTERNATIONAL SAID SLUGGISH GLOBAL ECONOMIC CONDITIONS DAMPED ITS GAINS ITS YEAREARLIER FIGURE INCLUDED A BIG ACCOUNTING CHARGE BORDEN WAS AFFECTED BY US PRICE WARS A YEAR EARLIER IT TOOK AN ACCOUNTING CHARGE PET'S DECLINE CAME FROM DISPOSING OF ITS WHITMAN CANDY UNIT THE FOOD RETAILING SECTOR WAS HELPED BY RISING FOOD PRICES FOOD LION'S PROFIT FELL BECAUSE OF PUBLICITY OVER ALLEGED SANITATION PROBLEMS KROGER'S LOSS WIDENED BECAUSE OF CHARGES ASSOCIATED WITH RETIREMENT OF DEBT BUT GROSS MARGINS IMPROVED GREAT ATLANTIC & PACIFIC TEA'S LOSS REFLECTED A CHARGE TAKEN FOR A SERIES OF STORE CLOSINGS THE MAJOR BEVERAGE COMPANIES POSTED MIXED RESULTS WITH SALES VOLUME STRONGER IN SOFT DRINKS BUT WEAKER IN BEER COKE'S EARNINGS BENEFITED FROM A SALES BOOST OVERSEAS LATE IN THE QUARTER ITS YEAREARLIER PERIOD INCLUDED A 146 MILLION ACCOUNTING CHARGE COKE AND PEPSI BOTH SAW CASESALES VOLUME RISE 3 IN THE US AND ABOUT 5 ABROAD PEPSI'S YEAREARLIER RESULTS INCLUDED A 9274 MILLION ACCOUNTING CHARGE HIGHER INTEREST EXPENSE CONTRIBUTED TO COCACOLA ENTERPRISES' LOSS THE COMPANY'S YEAREARLIER QUARTER INCLUDED A 148 MILLION ACCOUNTING CHARGE ANHEUSERBUSCH'S SALES TO RETAILERS DROPPED 1 AMID CONTINUED WEAKNESS IN THE KEY MARKETS OF CALIFORNIA AND THE EAST COAST THE BREWER HAD A YEAREARLIER ACCOUNTING CHARGE OF 767 MILLION MOST MAJOR HOSPITAL CHAINS REPORTED STRONGER FIRSTQUARTER EARNINGS CHIEFLY BECAUSE OF PROGRESS IN REDUCING THEIR DEBT PSYCHIATRIC HOSPITALS HOWEVER CONTINUED TO POST WEAK RESULTS REFLECTING SHORTER PATIENT STAYS AND A DROP IN GOVERNMENT AND PRIVATE INSURANCE REIMBURSEMENTS FOR MENTALHEALTH CARE COMMUNITY PSYCHIATRIC CENTERS' LOSS WAS LARGELY THE RESULT OF A RESTRUCTURING CHARGE ANALYSTS EXPECT HEALTHCARE PROVIDERS IN GENERAL TO SHOW MODERATE EARNINGS GROWTH IN THE CURRENT QUARTER THOUGH PRESIDENT CLINTON'S PROPOSED HEALTHCARE REFORMS COULD HURT PROFIT MARGINS AT A LATER DATE IN THE SEMICONDUCTOR INDUSTRY INTEL CONTINUED TO DOMINATE THE MARKET FOR CHIPS USED AS THE BRAINS OF PERSONAL COMPUTERS NEARLY TRIPLING ITS NET INCOME INTEL HAS BEEN THE SOLE SUPPLIER OF 486 CHIPS USED IN MOST HIGHEND PCS ADVANCED MICRO DEVICES WHICH HAS HAD TO RELY ON SALES OF ITS CLONE OF INTEL'S OLDER 386 CHIP IN APRIL BEGAN SELLING ITS 486 CHIP CLONE AFTER A FEDERAL COURT JUDGE DECLARED THAT THE COMPANY WAS ENTITLED TO A NEW TRIAL AGAINST INTEL WHICH HAD SUED TO BLOCK ADVANCED MICRO'S CLONE SALES ADVANCED MICRO'S PROFIT DECLINE BEAT ANALYSTS' EXPECTATIONS AS THE COMPANY BENEFITED FROM STRONG OVERSEAS SALES NATIONAL SEMICONDUCTOR'S EARNINGS WERE HELPED BY STRONG DEMAND FOR CHIPS USED IN ELECTRONICS OTHER THAN PCS AND CONTINUED EFFORTS TO STREAMLINE OPERATIONS ESTABLISHED SOFTWARE CONCERNS GAINED MOMENTUM IN THE QUARTER MICROSOFT THE INDUSTRY'S BEHEMOTH CONTINUED TO PILE UP STRONG GAINS ADOBE SYSTEMS THE LEADER IN PRINTER SOFTWARE POSTED MORE MODERATE BUT STILL SIGNIFICANT GROWTH AS DID AUTOMATIC DATA PROCESSING A LEADING SUPPLIER OF SOFTWARE FOR LARGE COMPUTERS ORACLE SYSTEMS THE LARGEST INDEPENDENT SUPPLIER OF DATABASE PROGRAMS SAW ITS NET RISE SHARPLY ON THE STRENGTH OF NEW PRODUCTS AND TIGHTER MANAGEMENT CONTROLS AMONG COMMUNICATIONS CONCERNS AT&T'S BIG LOSS REFLECTED A 664 BILLION CHARGE FOR ACCOUNTING CHANGES EXCLUDING THE CHARGES OPERATING EARNINGS ROSE 13 DESPITE FIERCE COMPETITION IN THE LONGDISTANCE SERVICE MARKET LONGDISTANCE REVENUE ROSE 1 WHILE REVENUE FROM COMMUNICATIONS PRODUCTS INCLUDING CONSUMER PHONES WAS FLAT MOTOROLA'S PROFIT ROSE SHARPLY FOR THE SIXTH CONSECUTIVE QUARTER ON STRONG SALES OF ITS SEMICONDUCTORS AND CELLULAR TELEPHONES ALSO THE YEAREARLIER QUARTER INCLUDED AN ACCOUNTING CHARGE OPERATING EARNINGS AT THE NATION'S BIGGEST BANKS GREW STRONGLY AGAIN PROPELLED BY WIDE NET INTEREST MARGINS THE MARGINS BETWEEN BORROWING AND LENDING RATES LOWER CHARGES FOR BAD DEBTS AND LOWER EXPENSES LARGE MONEYCENTER BANKS POSTED HEFTY GAINS IN SECURITIES AND CURRENCY TRADING AS WELL AS CONSUMER BANKING THE INDUSTRY'S RETURN ON ASSETS AN IMPORTANT MEASURE OF BANK PROFITABILITY HIT A RECORD OF 111 ACCORDING TO KEEFE BRUYETTE & WOODS INC IT WAS A TERRIFIC QUARTER SAID DAVID BERRY KEEFE'S DIRECTOR OF RESEARCH THE STRONG OPERATING EARNINGS WERE MASKED BY A SERIES OF ACCOUNTING CHANGES THAT WERE ADOPTED BY MANY BANKS MOST DECLINES IN NET INCOME FOR THE SECTOR WERE THE RESULT OF ACCOUNTING CHANGES ON THE FLIP SIDE SOME BANK EARNINGS WERE ARTIFICIALLY INFLATED BECAUSE OF ONETIME GAINS CITICORP'S PROFIT FOR INSTANCE WAS HELPED BY A 300 MILLION TAX CREDIT DESPITE A RECENT FALLOFF IN BANKS' SHARE PRICES SECONDQUARTER RESULTS AREN'T EXPECTED TO BE MUCH DIFFERENT WALL STREET EXPECTS CONTINUED STRONG PROFITS SINCE MUCH OF THE SAME BULLISH FACTORS ARE IN PLACE CREDIT QUALITY AT LARGE SAVINGS AND LOANS IS GENERALLY ON THE MEND MAINLY BECAUSE OF SLOWING DETERIORATION IN PROPERTY VALUES IN CALIFORNIA WHERE MANY THRIFTS ARE LOCATED WHILE LOWER LOANLOSS PROVISIONS HELPED PROFITS FOR HF AHMANSON AND GREAT WESTERN FINANCIAL NET INCOME FELL BECAUSE OF ONETIME ACCOUNTING GAINS A YEAR EARLIER MEANTIME STELLAR EARNINGS MOMENTUM AT GOLDEN WEST FINANCIAL IS OVER AT LEAST FOR NOW GOLDEN WEST NEVER ACCUMULATED BIG PROBLEMS THANKS TO CAUTIOUS LENDING POLICIES BUT ITS OPERATING MARGINS ARE SHRINKING AS ADJUSTABLERATE MORTGAGES FALL IN LINE WITH INTEREST RATES LOCAL PHONE COMPANIES TURNED IN ANOTHER LACKLUSTER QUARTER WHILE LONGDISTANCE COMPANIES CONTINUED TO SHINE ADJUSTING FOR ONETIME ITEMS IN BOTH QUARTERS THE REGIONAL BELLS WERE UNEVENTFUL WITH EARNINGS UP AROUND 5 OR SO AND NO SIGNIFICANT RECOVERY INDICATED SAID JACK GRUBMAN AN ANALYST WITH PAINEWEBBER INC YOU DID SEE INDICATIONS THAT THESE GUYS ARE ON THE BRINK OF SOME VERY MATERIAL COMPETITION HE SAID THE EVIDENCE FEES LONGDISTANCE CARRIERS PAID TO LOCAL PHONE COMPANIES TO COMPLETE CALLS DECLINED CONTRIBUTING TO STRONG GROWTH AT AT&T AND MCI COMMUNICATIONS ANALYSTS BELIEVE ACCESS CHARGES WHICH REPRESENT ROUGHLY 25 OF THE LOCAL PHONE COMPANIES' REVENUE AND A FAR GREATER PERCENTAGE OF THEIR PROFITS WILL CONTINUE TO DECLINE AS MORE COMPANIES INCLUDING CABLE OPERATORS ENTER THE MARKET OR EXPAND THEIR NETWORKS GENERAL ELECTRIC POSTED STRONGERTHANEXPECTED GAINS IN MOST OF ITS BUSINESSES SEVEN OF THE COMPANY'S 12 BUSINESSES INCLUDING FINANCIAL SERVICES PLASTICS AND BROADCASTING OPERATIONS POSTED DOUBLEDIGIT EARNINGS INCREASES ANALYSTS SAID THE COMPANY'S RESULTS WERE QUITE FAVORABLE ESPECIALLY IN LIGHT OF A SIGNIFICANT WEAKNESS IN GE'S JET ENGINE BUSINESS AND DIFFICULT ECONOMIC CONDITIONS IN MANY OF THE COMPANY'S OTHER MARKETS TRANSCO ENERGY CO'S FIRSTQUARTER LOSS FOR 1992 WAS MISSTATED AS NET INCOME IN YESTERDAY'S REPORT ON CORPORATE PERFORMANCE RESULTING IN INCORRECT PROFIT TOTALS FOR THE PIPELINE CATEGORY THE ENERGY CATEGORY AND THE 578 COMPANIES SURVEYED TRANSCO EARNED 23120000 IN THE LATEST QUARTER COMPARED WITH A LOSS OF 38842000 A YEAR EARLIER TOTAL NET FOR THE PIPELINES GROUP ROSE 89 TO 523564000 FROM 277073000 A YEAR EARLIER THE ENERGY GROUP HAD A PROFIT OF 3932043000 COMPARED WITH A LOSS OF 684728000 A YEAR EARLIER WHILE NET INCOME FOR ALL 578 COMPANIES WAS 21988243000 COMPARED WITH A YEAREARLIER LOSS OF 35033545000 9305030004 930503 HONDA FIRED US EXECUTIVES TIED TO BRIBERY DEALERS SAY MONEY GIFTS HELPED SOME RECEIVE PREFERENTIAL TREATMENT BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT HONDA MOTOR CO ACKNOWLEDGED IT DISCHARGED SOME US SALES EXECUTIVES FOLLOWING AN INTERNAL REVIEW OF CHARGES BY DEALERS THAT THEY HAD TO BRIBE COMPANY OFFICIALS WITH MONEY AND GIFTS TO RECEIVE ADEQUATE SUPPLIES OF CARS THE ALLEGATIONS RELATE TO A FEW FORMER EMPLOYEES A HONDA SPOKESMAN SAID THE VAST MAJORITY OF OUR EMPLOYEES ARE HONEST PEOPLE THAT HAVE GREAT INTEGRITY AND DEDICATION TO THE COMPANY STILL THE MANAGEMENT TURMOIL AND RELATED LITIGATION COME AT A PARTICULARLY BAD TIME FOR HONDA THE CONTROVERSY WHICH WAS DESCRIBED IN A NEW YORK TIMES ARTICLE SUNDAY THREATENS TO DIVERT MANAGEMENT ATTENTION AND TARNISH THE AUTO MAKER'S HIGHBROW IMAGE EVEN AS ITS US SALES ARE IN THEIR WORST SLUMP IN YEARS INDEED MOST HONDA DEALERS AREN'T CLAMORING FOR MORE CARS TODAY IN CONTRAST TO THE PERIOD IN THE MID AND LATE1980S WHEN HONDA SALES WERE BOOMING AND IMPORT QUOTAS MADE CARS SCARCE SO FAR THREE SENIOR EXECUTIVES ACCUSED OF ACCEPTING BRIBES FROM DEALERS HAVE LEFT THE COMPANY THE SPOKESMAN SAID SIX OF 10 HONDA REGIONAL ZONE MANAGERS HAVE RESIGNED WITHIN THE LAST 12 MONTHS AMID THE CHARGES OF CORRUPTION THE ALLEGATIONS OF CORRUPTION IN HONDA'S MARKETING OPERATIONS SURFACED IN A LAWSUIT FILED IN 1989 BY A CONCORD NH ACURA DEALER THE DEALER CHARGED THAT HONDA IGNORED HIS AILING FRANCHISE WHILE GIVING SPECIAL TREATMENT TO A NEARBY ACURA DEALER WHO BRIBED THE DISTRICT SALES MANAGER WITH A CAR AND MONEY ACURA IS HONDA'S LUXURY CAR DIVISION RICHARD NAULT THE NEW HAMPSHIRE DEALER WHO FILED THE SUIT CHARGES THAT ACURA DEALER PAUL T BOHLANDER GAVE A NEW ACURA INTEGRA AUTOMOBILE TO DAVID L PEDERSEN AN ACURA DISTRICT SALES MANAGER ACCORDING TO COURT DOCUMENTS MR NAULT CLAIMED THAT AFTER MR PEDERSEN WAS PROMOTED TO ASSISTANT ZONE MANAGER MR BOHLANDER GAVE HIM FOUR PAYMENTS TOTALING 17197 IN CASH DURING TESTIMONY IN US DISTRICT COURT IN CONCORD MR BOHLANDER ADMITTED HE MADE THE PAYMENTS ACCORDING TO COURT RECORDS MR NAULT CHARGED THAT MR BOHLANDER RECEIVED PREFERENTIAL TREATMENT AS A DIRECT RESULT OF THE PAYMENTS FOR INSTANCE MR BOHLANDER WAS AWARDED AN ACURA DEALERSHIP IN MANCHESTER NH AFTER HE GAVE MR PEDERSEN A NEW CAR MR NAULT CHARGES IN COURT DOCUMENTS THAT HE SOUGHT AN ACURA DEALERSHIP IN MANCHESTER BUT WAS REFUSED US ATTORNEY PETER PAPPS OF CONCORD SAID IN MARCH THAT HE IS INVESTIGATING THE ACCUSATIONS OF BRIBERY IN MR NAULT'S CASE AS WELL AS OTHER ALLEGED INCIDENTS THE FBI SAID LAST WEEK THAT IT IS ALSO INVESTIGATING THE AUTO MAKER THREE OTHER DEALERS ALSO HAVE FILED LAWSUITS AGAINST HONDA CHARGING THE AUTO MAKER WITH BREACH OF CONTRACT THE HONDA SPOKESMAN SAID IN ONE CASE A FORMER DEALER IN CONCORD CALIF SAYS HE WAS FORCED TO SELL HIS DEALERSHIP AFTER HONDA FAILED TO SHIP HIM AN ADEQUATE SUPPLY OF CARS THE CASE IS CURRENTLY IN LITIGATION IN US DISTRICT COURT IN SAN FRANCISCO A HONDA SPOKESMAN CONFIRMED 9305030003 930503 SUN CO SELLS PORTION OF STAKE IN SUNCOR TO INVESTMENT GROUP TORONTO SUN CO SAID IT SOLD PART OF ITS REMAINING STAKE IN SUNCOR INC FOR TOTAL PROCEEDS OF ABOUT 1842 MILLION CANADIAN DOLLARS US1449 MILLION SUN SAID THE SALE TO A GROUP OF UNDERWRITERS HEADED BY TORONTO INVESTMENT DEALER BURNS FRY LTD LOWERS ITS STAKE IN SUNCOR TO 55 THE LEVEL IT HAD HOPED TO REACH AFTER A LESSTHANSUCCESSFUL INITIAL PUBLIC OFFERING OF SUNCOR STOCK IN MARCH 1992 POOR MARKET CONDITIONS AT THAT TIME FORCED SUNCOR WHICH THEN HELD 75 OF THE COMPANY TO PULL PART OF THE OFFERING THE ONTARIO GOVERNMENT WHICH HELD THE REMAINING 25 SOLD ABOUT 11 TO THE PUBLIC THROUGH THE OFFERING AND RECENTLY OFFERED THE REMAINDER OF ITS HOLDINGS IN A SUCCESSFUL SECONDARY ISSUE THE ISSUE MARKS THE FOURTH MAJOR OFFERING OF STOCK IN A LARGE CANADIAN OIL AND GAS CONCERN IN ABOUT A WEEK TAKING ADVANTAGE OF A GROWING APPETITE FOR THESE INVESTMENTS UNDERWRITERS PROPOSE TO REOFFER THE SHARES TO THE PUBLIC IN A TRANSACTION SET TO CLOSE IN THE SECOND HALF OF MAY AT C27 A SHARE THEY SAID THEY ALREADY HAVE ALLOCATED THE ENTIRE OFFERING TO RETAIL AND INSTITUTIONAL INVESTORS SUN AN OIL AND GAS CONCERN BASED IN RADNOR PA SAID IT PLANS TO USE PROCEEDS FROM THE SALE TO FINANCE ITS ONGOING OPERATIONS AND CAPITAL SPENDING PLANS AND TO HELP IT TAKE ADVANTAGE OF GROWTH OPPORTUNITIES IN THE US CRUDE OIL REFINING AND MARKETING BUSINESS SUNCOR SAID IT WELCOMED THE MOVE WHICH IT BELIEVES WILL BROADEN THE COMPANY'S SHAREHOLDER BASE AND STRENGTHEN LIQUIDITY SUN CLOSED AT 26 UP 1125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SUNCOR CLOSED AT C2725 DOWN 25 CANADIAN CENTS ON THE TORONTO STOCK EXCHANGE 9305030002 930503 TRICARE TO DISCONTINUE CORE BUSINESSES CUT EMPLOYMENT BY 43 IRVINE CALIF TRICARE INC SAID IT IS DISCONTINUING ITS CORE MEDICAL AND LEGAL EVALUATION AND RELATED BUSINESSES AND SLASHING EMPLOYMENT BY 117 OR 43 THE OCCUPATIONALHEALTHCARE COMPANY ALSO SAID IT PLANS TO FIND A NEW CHIEF EXECUTIVE OFFICER TO REPLACE STEPHEN F BULLOCK ITS 39YEAROLD PRESIDENT AND WILL TAKE A NET 6 MILLION RESTRUCTURING CHARGE IN ITS FISCAL FOURTH QUARTER ENDING MAY 31 MR BULLOCK SAID IN AN INTERVIEW THAT THE CHARGE WOULD RESULT IN LOSSES FOR THE QUARTER AND YEAR ALTHOUGH HE WOULDN'T ESTIMATE THEM HE SAID TRICARE WOULD SHUT DOWN 26 OF ITS 32 OFFICES MR BULLOCK PLANS TO STAY AT TRICARE IN THE NEW POSITION OF CHIEF OPERATING OFFICER HE SAID HE AND THE BOARD DECIDED TO RECRUIT A NEW CHIEF EXECUTIVE WITH EXPERIENCE IN MANAGED CARE I HOPE TO REMAIN WITH THE COMPANY FOR A LONG LONG TIME HE SAID IN ITS 1992 ANNUAL REPORT TRICARE SAID ITS BUSINESS OF MEDICAL AND LEGAL EVALUATIONS FOR INJURED WORKERS AND RELATED DIAGNOSTIC AND LANGUAGEINTERPRETING SERVICES ACCOUNTED FOR 81 OF NET SALES LAST YEAR THE COMPANY HAD NET INCOME OF 38 MILLION OR 14 CENTS A SHARE ON SALES OF 47 MILLION MR BULLOCK SAID THAT OVER THE PAST YEAR THOSE BUSINESSES HAVE DWINDLED TO LESS THAN 50 OF SALES HE CITED CONTINUING EFFORTS TO REFORM CALIFORNIA'S WORKERCOMPENSATION SYSTEM AS CREATING AN UNCERTAIN ENVIRONMENT FOR THE COMPANY TRICARE SAID IT PLANS TO INCREASE ITS REMAINING INDUSTRIAL MEDICAL TREATMENT BUSINESS WHICH PROVIDES MEDICAL CARE TO WORKERS INJURED ON THE JOB TRICARE EXPECTS TO REALIZE ABOUT 10 MILLION IN CASH FROM DISPOSING OF ASSETS AND COLLECTING RECEIVABLES AND WILL USE THOSE FUNDS TOWARD EXPANDING ITS REMAINING OPERATIONS MR BULLOCK SAID 9305030088 930401 PARTNERSHIP RESALE FIRMS' PRICING DRAWS NASD IRE BY KAREN SLATER DAMATO STAFF REPORTER OF THE WALL STREET JOURNAL CONTINUING ITS ATTACK ON PREDATORY PRICING PRACTICES IN THE PARTNERSHIP RESALE MARKET THE NATIONAL ASSOCIATION OF SECURITIES DEALERS HAS CENSURED AND FINED ONE OF THE INFORMAL MARKET'S MOST ACTIVE FIRMS ON THE SURFACE THE ENFORCEMENT ACTION WOULD SEEM TO BE GOOD NEWS FOR INVESTORS WHO HAVE PUT MORE THAN 90 BILLION INTO PARTNERSHIPS THAT OWN REAL ESTATE OIL AND GAS PROPERTIES AND OTHER BUSINESS VENTURES BUT OFFICIALS OF THE CENSURED FIRM PARTNERSHIP SECURITIES EXCHANGE INC AND OTHER RESALE FIRMS SAY THE MOVE COULD ACTUALLY BACKFIRE ON THE NASD AND ON INVESTORS BY REDUCING THE NUMBER OF FIRMS THAT STAND READY TO TAKE OLDER PARTNERSHIP UNITS OFF INVESTORS' HANDS THE INFORMAL LOWVOLUME RESALE MARKET IS ABOUT THE ONLY AVENUE FOR INVESTORS WHO WANT TO SELL OLDER PARTNERSHIP UNITS OR BUY MORE AND THAT MARKET HAS BEEN RIFE WITH EXCESSIVE PRICE MARKUPS AND OTHER SECURITIES LAW VIOLATIONS THE NASD SAYS SOME PEOPLE WHO TRADED IN THE RESALE MARKET THROUGH PARTNERSHIP SECURITIES EXCHANGE WOULD ACTUALLY GET MONEY BACK UNDER THE DECISION HANDED DOWN BY THE NASD 10 DAYS AGO AND NOT YET MADE PUBLIC BY THE ASSOCIATION THE OAKLAND CALIF FIRM WIDELY KNOWN AS PSX IS REQUIRED TO RETURN A TOTAL OF 89176 IN EXCESSIVE MARKUPS AND FEES CHARGED CERTAIN CUSTOMERS WHO BOUGHT OR SOLD PARTNERSHIP UNITS IN 1989 THOSE RESTITUTION PAYMENTS WOULD LARGELY OFFSET NASD FINES TOTALING 90540 RONALD T BAKER PRESIDENT OF PSX SAID THE FIRM WILL APPEAL THE NASD ACTION TO THE SECURITIES AND EXCHANGE COMMISSION HE WAS PERSONALLY CENSURED ALONG WITH PSX COFOUNDER AND CORPORATE COUNSEL JAMES F FOTENOS IN THE MEANTIME MR BAKER SAID PSX IS CONSIDERING GOING OUT OF BUSINESS AT THE MAXIMUM COMPENSATION ALLOWED IN THE ENFORCEMENT ACTION HE ASSERTED I'LL RUN A LOSS ON EVERY TRANSACTION IN ITS DECISION ON PSX THE NASD SAID IT WOULD ALLOW A MARKUP OF 8 BETWEEN THE PRICE RECEIVED BY A PARTNERSHIP SELLER AND THAT PAID BY THE BUYER THAT WOULD INCLUDE PSX'S CUT AS WELL AS ANY COMMISSIONS PAID TO STOCKBROKERS REPRESENTING THE BUYER OR SELLER ON THE 36 PSX TRANSACTIONS AT ISSUE IN THE ENFORCEMENT ACTION THE NASD SAID MARKUPS RANGED FROM 16 TO 360 THE MOST COMMON MARKUP WAS BETWEEN 20 AND 30 THE NASD'S 8 RULING IS MORE GENEROUS THAN ITS LONGSTANDING POLICY THAT BROKERAGE COMMISSIONS AND RELATED COMPENSATION FROM SECURITIES TRADES GENERALLY SHOULDN'T EXCEED 5 THE SELFREGULATORY BODY SAID IT RECOGNIZED THAT TRANSACTION COSTS MAY BE HIGHER IN THE PARTNERSHIP RESALE MARKET THAN IN OTHER MARKETS BUT THAT 8 SHOULD BE SUFFICIENT IF PSX CANNOT ADEQUATELY COVER ITS RISK AND ITS COSTS AND STILL CHARGE FAIR MARKUPS IT MUST CONSIDER WHETHER IT IS POSSIBLE FOR THE FIRM TO CONDUCT ITS BUSINESS IN THE MANNER IT HAS CHOSEN THE NASD SAID REFERRING TO PSX'S OFTENSTATED INTENT TO BUY LOW AND SELL HIGH THE NASD SAID IN ITS RULING THAT THE FIRM IS NOT ENTITLED TO CHARGE WHATEVER PRICE THE MARKET WILL BEAR EVEN IF THE PURCHASER BELIEVES THAT HE OR SHE IS GETTING A FAIR PRICE PSX HAD ARGUED THAT IT ISN'T SUBJECT TO THE MARKUP POLICY IN PART BECAUSE THE FIRM PUTS ITS OWN CAPITAL AT RISK IN BUYING UNITS FOR RESALE EVEN WITH THE MARKUPS IT HAS BEEN CHARGING THE CLOSELY HELD FIRM'S NET INCOME FOR THE FISCAL YEAR ENDED NOV 30 WAS A MEAGER 4762 DOWN FROM 159768 THE YEAR BEFORE ACCORDING TO AN AUDITED FINANCIAL STATEMENT SUBMITTED TO THE SEC JAMES FRITH JR PRESIDENT OF ANOTHER RESALEMARKET FIRM CHICAGO PARTNERSHIP BOARD INC SAID THE MAXIMUM MARKUP THE NASD RULING WOULD ALLOW FIRMS TO CHARGE PEOPLE WHO BUY OR SELL OLDER PARTNERSHIP UNITS IS COMPLETELY UNREALISTIC IT IS NOT SURVIVABLE IF THE NASD STICKS WITH THE POLICY OUTLINED IN THE PSX DECISION HE SAID THERE WOULD BE A NUMBER OF PEOPLE WHO WOULD GO OUT OF BUSINESS AND IT WOULD MEAN A GREAT INCREASE IN ILLIQUIDITY FOR INVESTORS BUT RICHARD RUFFINE HEAD OF PARTNERSHIP ACTIVITIES AT MERRILL LYNCH & CO SAID HE BELIEVES 8 IS CERTAINLY WORKABLE AND APPROPRIATE IN THE MARKET AND GIVES PLENTY OF FLEXIBILITY TO THE PEOPLE INVOLVED REFERRING TO INDEPENDENT PARTNERSHIP RESALE FIRMS SUCH AS PSX HE SAID SOME FIRMS CAN OPERATE QUITE PROFITABLY WITH THAT 8 AND SOME FIRMS MAY NOT BE ABLE TO LIMITED PARTNERSHIPS WERE NEVER DESIGNED TO BE TRADED BUT MANY HAVE REMAINED IN EXISTENCE FOR LONGER THAN THE 10TO12YEAR PERIODS THE SPONSORS AND ORIGINAL INVESTORS EXPECTED FOR PEOPLE WHO NEED TO GET OUT VIRTUALLY THE ONLY OPTION HAS BEEN THE INFORMAL RESALE OR SECONDARY MARKET THE MARKET HAS TWO DISTINCT PARTS ONE IS COMPOSED OF MATCHING SERVICES RUN BY MERRILL LYNCH AND SEVERAL OTHER MAJOR SECURITIES FIRMS TO ASSIST CUSTOMERS WHO WANT TO SELL OR BUY UNITS OF PARTNERSHIPS THOSE FIRMS ORIGINALLY SOLD THE OTHER PART OF THE MARKET IS MADE UP OF PERHAPS 20 MOSTLY SMALLER FIRMS INCLUDING PSX AND CHICAGO PARTNERSHIP BOARD THAT EITHER BUY AND SELL FOR THEIR OWN ACCOUNT OR BRING BUYERS AND SELLERS TOGETHER THE RESALE MARKET HAS BEEN IN TURMOIL OVER THE PAST 18 MONTHS AS VARIOUS PRONOUNCEMENTS FROM THE NASD AND THE SEC HAVE FORCED CHANGES IN BOTH SIDES OF THE BUSINESS THE BIGGEST ISSUE FOR THE INDEPENDENT FIRMS IS HOW MUCH THEY CAN EARN IN COMMISSIONS OR OTHER PAY LAST YEAR ANOTHER ACTIVE INDEPENDENT LIQUIDITY FUND INVESTMENT CORP OF EMERYVILLE CALIF AGREED TO PAY A 125000 FINE TO SETTLE NASD ACCUSATIONS OF UNFAIR PRICES LIQUIDITY FUND POSTED A NET LOSS OF 1 MILLION FOR 1992 WHICH COMPANY PRESIDENT BRENT DONALDSON SAID IS PARTLY BECAUSE OF TRIMMING THE FIRM'S AVERAGE MARKUP FROM MORE THAN 10 IN 1991 TO ABOUT 5 NOW SEE RELATED LETTER LETTERS TO THE EDITOR NASD HASN'T RELAXED 5 POLICY ON MARKUPS WSJ MAY 3 1993 9304010008 YY93 MM05 9305030010 930408 COUNTERPOINT THE BITTER FRUITS OF AIRLINE DEREGULATION BY PAUL STEPHEN DEMPSEY THE US AIRLINE INDUSTRY HAS NOW LOST MORE THAN TWICE THE ACCUMULATED PROFIT IT EARNED SINCE IT BEGAN COMMERCIAL SERVICE IN THE 1920S NAME ANOTHER MAJOR INDUSTRY IN THE HISTORY OF OUR REPUBLIC THAT HAS LOST ALL THE MONEY IT EVER MADE JUST WHEN WE THOUGHT THE NEWS COULD GET NO WORSE WALL STREET DOWNGRADED VIRTUALLY ALL OF THE INDUSTRY'S CRUSHING DEBT TO JUNK BOND STATUS AS WALL STREET ANALYST JULIUS MALDUTIS APTLY NOTED IF THE AIRLINES WERE S&LS THE GOVERNMENT WOULD PUT THEM INTO RECEIVERSHIP IN A DESPERATE ATTEMPT TO STAY AFLOAT AIRLINES ARE SHELVING NEW AIRCRAFT ORDERS TRIMMING AND ABANDONING HUBS AND TERMINATING THOUSANDS OF EMPLOYEES ABOUT 18 OF THE INDUSTRY IS ALREADY IN CHAPTER 11 BANKRUPTCY AND MORE STAND ON THE PRECIPICE THE RIPPLE EFFECT ON BOEING AND MCDONNELLDOUGLAS PRODUCERS OF OUR NATION'S SINGLE MOST IMPORTANT MANUFACTURING EXPORT HAS BEEN DEVASTATING BOEING ALONE IS SLASHING 26000 JOBS FROM ITS WORK FORCE PARADOXICALLY AIRLINES ARE NOW MORE HIGHLY CONCENTRATED YET LESS PROFITABLE THAN EVER CLEARLY THIS IS A DYSFUNCTIONAL MARKET REFLECTING DYSFUNCTIONAL ECONOMIC POLICIES THE AIRLINE INDUSTRY HAS ALWAYS FLOWN THROUGH THE TURBULENCE OF THE UPDRAFTS AND DOWNDRAFTS OF THE MARKET CYCLE BEFORE THE AIRLINE DEREGULATION ACT OF 1978 AT A TIME WHEN IT WAS TAKING DELIVERY OF TREMENDOUS WIDEBODIED CAPACITY THE INDUSTRY SUFFERED RECESSION DAMPENED CONSUMER DEMAND AND SOARING FUEL COSTS BUT UNDER REGULATION NEVER WAS A PAN AM OR EASTERN LIQUIDATED OR A TWA OR CONTINENTAL CAST INTO BANKRUPTCY NOT TO BE CONFUSED BY THE FACTS LAISSEZ FAIRE THEOLOGIANS TENACIOUSLY POINT TO CONSUMER SAVINGS AND DECLARE VICTORY NEVER MIND THE TREMENDOUS LOSSES SUFFERED BY INVESTORS CREDITORS AND WORKERS OR THE OPPORTUNITY COSTS SQUANDERED BY IMPRISONING BUSINESS TRAVELERS IN CANISTERS OF ALUMINUM AND STEEL AND FLYING THEM CIRCUITOUSLY THROUGH CONSTIPATED HUBS OR THAT WE AMERICANS NOW FLY THE OLDEST FLEET OF AIRCRAFT OF ANY G7 NATION OR THAT BANKRUPTCIES AND CONCENTRATION ARE GROWING MANY TEXTBOOK ECONOMISTS SUFFER FROM A SEVERE METHODOLOGICAL HANDICAP BY INSISTING THAT COMPETITION IS PERFECT AND A UNIDIMENSIONAL ASSESSMENT OF CONSUMER PRICES IS THE ONLY SALIENT MEASURE OF SOUND PUBLIC POLICY TRUE SOME CONSUMERS DO SAVE PAYING PRICES THAT FAIL TO COVER THE FULLY ALLOCATED COSTS OF PROVIDING SERVICE OF COURSE BELOWCOST PRICING CONTRIBUTES TO THE INDUSTRY'S INSOLVENCY WE ARE CUTTING THE ORCHARD'S TREES TO HARVEST THE FRUIT MOREOVER PRICING TODAY IS MONSTROUSLY DISCRIMINATORY MANY CONSUMERS PAY FARES THAT HAVE SOARED WELL ABOVE THE INFLATION RATE SMALL BUSINESSES WHICH CREATE 90 OF OUR NATION'S JOBS PAY OBSCENELY HIGHER PRICES VISAVIS THE FORTUNE 500 FORCING MANY RELUCTANTLY TO AVOID AIR TRANSPORTATION NO NATION THAT VALUES JOB CREATION WOULD WILLFULLY ENDORSE SUCH A REGRESSIVE PRICING STRUCTURE BUT UNDER DEREGULATION WE AMERICANS NO LONGER HAVE ANY SAY OVER HOW OUR AIRPORTS AND AIRWAYS PUBLIC RESOURCES DEVELOPED WITH TAXPAYER DOLLARS SERVE US DEREGULATION TRADED PUBLIC INTEREST REGULATION OF THE AIRLINE INDUSTRY FOR AIRLINE REGULATION OF THE PUBLIC TO GET A DECENT FARE WE MUST SURRENDER OUR FREEDOM OF WHEN WE PLAN OUR TRIPS HOW LONG WE STAY AND WHERE WE SLEEP ON SATURDAY NIGHTS IF CONSUMERS ARE SO HAPPY WHY IS RALPH NADER NOW DESCRIBING THE AIRLINE SYSTEM AS A PUBLIC UTILITY WHY DOES CONSUMER REPORTS DESCRIBE AIRLINE DEREGULATION AS ANTICONSUMER WHY DO POLLS OF FREQUENT FLIERS REVEAL THAT A SOLID MAJORITY WOULD PREFER REREGULATION BECAUSE THEY HAVE ENOUGH COMMON SENSE TO SEE THAT AIRLINE DEREGULATION IS A FAILURE THE NOVEMBER ELECTIONS REVEAL THAT THE AMERICAN PEOPLE REJECT THE FAILED LAISSEZ FAIRE POLICIES OF THE PAST 15 YEARS WHICH HAVE SADDLED OUR CHILDREN WITH ENORMOUS DEBT AND WHICH HAVE CONTRIBUTED TO A PUBLIC AND PRIVATE DISINVESTMENT IN INFRASTRUCTURE DEREGULATION IS BUT ONE PIECE OF THAT COMPREHENSIVE DARWINIST POLICY SUNG TO THE TUNE OF MARKET UBER ALLES MARKET FAILURE HAS ALWAYS BEEN AN APPROPRIATE CATALYST FOR GOVERNMENT INTERVENTION PARTICULARLY IN INFRASTRUCTURE INDUSTRIES AS VITAL TO COMMERCE COMMUNICATIONS AND NATIONAL DEFENSE AS TRANSPORTATION WE NEED NOT RETURN AIRLINES TO THE TIGHTFISTED REGIME OF NEW DEAL PUBLIC UTILITY REGULATION NOT IF CONGRESS ACTS PROMPTLY TO SAVE THE INDUSTRY FROM THE CONCENTRATION LEVELS THAT WILL MANDATE SUCH A DRACONIAN RESULT AND THERE ARE CLEARLY BETTER SOLUTIONS THAN SELLING OFF OUR AIRLINE INDUSTRY TO FOREIGN NATIONALS AND THEIR GOVERNMENTS UNFORTUNATELY THE PUBLIC POLICY DEBATE HAS DEGENERATED INTO THE POLARIZED EXTREMES OF PUBLIC UTILITY REGULATION OR LAISSEZ FAIRE DEREGULATION THE APPROPRIATE SOLUTION PROBABLY LIES BETWEEN OR BEYOND THEM FIRST AND FOREMOST IT INVOLVES ADDRESSING THE UNPRECEDENTED FINANCIAL CRISIS CONSUMING THE INDUSTRY AND ITS CAUSES WE WILL NEVER FIND A PROPER CURE FOR THE DISEASE UNLESS WE DIAGNOSE IT CORRECTLY CAST ASIDE BLIND FAITH IN THE CURATIVE POWERS OF MARKET ALCHEMISTS AND MOVE PROMPTLY TO RESTORE THE PUBLIC INTEREST IN SAFE DEPENDABLE AND REASONABLY PRICED TRANSPORTATION SERVICE ONLY THEN CAN WE REGAIN WHAT WAS BEFORE DEREGULATION UNIVERSALLY APPLAUDED AS THE WORLD'S FINEST SYSTEM OF TRANSPORTATION SEE RELATED LETTERS LETTERS TO THE EDITOR AIRLINES SUFFER FOR A BETTER FUTURE WSJ MAY 3 1993 9304080077 YY93 MM05 9305030001 930430 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 9304300201 930430 COMMISSIONER USSERY PLAYS LEAGUELEADING BALL IN LARGELY WHITE FIELD OF SPORTS MANAGEMENT BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL DENVER TERDEMA USSERY IT SEEMS CLEAR HAS PROVEN HIMSELF IN THE CRUCIBLE OF SPORTS MANAGEMENT WHEN MR USSERY CAME TO THE CONTINENTAL BASKETBALL ASSOCIATION AS DEPUTY COMMISSIONER THREE YEARS AGO THE LEAGUE WAS PLAGUED BY 25 LAWSUITS A ROSTER OF MOSTLY UNPROFITABLE FRANCHISES AND AN ASSORTMENT OF HOSTILE TEAM OWNERS AT ONE OF HIS FIRST MEETINGS MR USSERY HAD TO PRY THE HANDS OF ONE OWNER OFF THE THROAT OF ANOTHER BUT TWO YEARS AFTER BECOMING THE LEAGUE'S COMMISSIONER AND ONE OF THE TOPRANKING BLACKS IN PROFESSIONAL SPORTS MANAGEMENT MR USSERY HAS BROUGHT A BUSINESSLIKE CALM TO THE ORGANIZATION THE 34YEAROLD LAWYER HAS DISPOSED OF THE LEGAL PROBLEMS PULLED THE 16 OWNERS TOGETHER AND NEGOTIATED A STRONGER AND MORE LUCRATIVE PACT WITH THE LEAGUE'S PRINCIPAL BENEFACTOR THE NATIONAL BASKETBALL ASSOCIATION HE ALSO HAS HELPED TO IMPROVE TEAM FINANCES AND HAS CREATED DRUG AND EDUCATION PROGRAMS FOR PLAYERS THAT ARE THE ENVY OF OTHER PROFESSIONAL SPORTS LEAGUES HE ROLLED UP HIS SLEEVES AND GOT IT DONE SAYS NBA COMMISSIONER DAVID STERN SO WITH BIGTIME SPORTS ORGANIZATIONS VOICING COMMITMENTS TO HIRE AND PROMOTE MINORITIES IN THEIR MANAGEMENT RANKS MR USSERY'S PHONE IS RINGING OFF THE HOOK RIGHT WELL HE WAS OFFERED A POSITION WITH A MAJORLEAGUE BASEBALL TEAM AND A POST IN THE OFFICE OF A LEAGUE THAT HE WON'T IDENTIFY BUT HE TURNED BOTH DOWN SAYING THAT HE FELT NEITHER POSITION WAS COMMENSURATE WITH MY EXPERIENCE AND ABILITY I WANT TO BE IN THE FIRE MR USSERY SAYS I THINK I COULD RUN A LEAGUE OR BE A RIGHTHAND PERSON TO SOMEONE WHO DOES SUCH TOP SPOTS HAVEN'T BEEN FORTHCOMING FOR INSTANCE WHEN MR STERN WAS SEEKING A SENIOR EXECUTIVE VICE PRESIDENT WITH LEGAL EXPERIENCE LAST YEAR HE DIDN'T CALL MR USSERY CHOOSING INSTEAD TO PROMOTE FROM WITHIN I CAN'T SAY I WASN'T DISAPPOINTED SAYS MR USSERY THE BASEBALL LEAGUE HASN'T CALLED EITHER ALTHOUGH IT NEEDS BOTH A COMMISSIONER AND A DEPUTY COMMISSIONER THOSE ORGANIZATIONS HAVE BEEN VOWING TO BOOST THE RANKS OF MINORITIES IN MANAGEMENT EVER SINCE AL CAMPANIS THE FORMER LOS ANGELES DODGERS GENERAL MANAGER WAS PILLORIED FOR HIS 1987 REMARK THAT MANY BLACKS LACKED THE NECESSITIES TO BECOME BASEBALL MANAGERS AND GENERAL MANAGERS BUT THE LEAGUES HAVEN'T DELIVERED ON THOSE PROMISES INSISTS FRANK WATKINS DIRECTOR OF THE REV JESSE JACKSON'S RAINBOW COALITION FOR FAIRNESS IN ATHLETICS BY THE GROUP'S CALCULATIONS OF ABOUT 200 TOP MANAGEMENT JOBS ON BASEBALL'S 28 TEAMS ONLY 4 ARE HELD BY BLACKS JERRY REINSDORF CHAIRMAN OF BASEBALL'S EQUALOPPORTUNITY COMMITTEE AGREES THAT THERE AREN'T ENOUGH MINORITIES IN BASEBALL MANAGEMENT BUT HE SAYS 17 OF BASEBALL'S FRONTOFFICE POSITIONS ARE FILLED BY MINORITIES TODAY COMPARED WITH ONLY 2 IN 1987 AS FOR THE COMMISSIONER JOB HE SAYS THE SEARCH COMMITTEE HASN'T CALLED ANYONE YET ONCE IT GETS STARTED HE SAYS IT PLANS TO INTERVIEW MINORITY CANDIDATES MR USSERY'S PATH TO THE CBA BEGAN IN LOS ANGELES'S WATTS DISTRICT WHERE HE WAS A SON OF A NEIGHBORHOOD GROCER HE WENT ON TO EARN A BACHELOR'S DEGREE FROM PRINCETON UNIVERSITY A MASTER'S FROM HARVARD AND A LAW DEGREE FROM THE UNIVERSITY OF CALIFORNIA AT BERKELEY IN 1987 HE JOINED THE LOS ANGELES OFFICE OF MORRISON & FOERSTER A SAN FRANCISCOBASED LAW FIRM THIS JOURNEY THROUGH A MOSTLY WHITE AND PRIVILEGED WORLD FORCED HIM TO LEARN DIPLOMACY AND ACCEPT DIFFERENT POINTS OF VIEW MR USSERY SAYS IT ALSO LEFT HIM IN LIMBO I'VE NEVER REALLY BEEN ACCEPTED IN THE WHITE MAN'S WORLD AND I'M NOT ACCEPTED BACK IN WATTS ANYMORE EITHER HE SAYS WHILE SEARCHING FOR A WAY TO HELP YOUNGSTERS BRIDGE THE GAP HE HAD EXPERIENCED HE FOUND THE CBA WHILE DOING VOLUNTEER WORK IN A PROGRAM THAT TAUGHT YOUNGSTERS ABOUT LAW THROUGH SPORTS HE MET THENCBA COMMISSIONER IRV KAZE WHO EVENTUALLY OFFERED HIM THE JOB OF DEPUTY COMMISSIONER AND GENERAL COUNSEL THE DIFFERENCES BETWEEN THE CBA AND NBA GO FAR BEYOND JUST ONE LETTER WHILE THE 28 NBA TEAMS MARK THE NATION'S MOST POPULOUS METROPOLITAN AREAS CBA FRANCHISES CAN BE FOUND IN SUCH CITIES AS YAKIMA WASH RAPID CITY SD AND LACROSSE WIS WHILE MULTIMILLIONDOLLAR PLAYER CONTRACTS ARE COMMON IN THE NBA CBA PLAYERS EARN BETWEEN 700 AND 1000 A WEEK DURING THE SEASON THE TEAMS PLAY IN SMALL ARENAS AND A TYPICAL GAME MIGHT ATTRACT 3500 OR SO FANS WHEN MR USSERY ARRIVED IN 1990 AT LEAGUE HEADQUARTERS IN DENVER HE FOUND A LEAGUE TEETERING ON THE BRINK IN ITS 47 YEARS THE CBA HAD EARNED A REPUTATION AS A ROVING BAND OF GYPSY FRANCHISES THAT HAD FLITTED IN AND OUT OF 74 DIFFERENT CITIES AMID THE CONSTANT BICKERING OF OWNERS STAFF MORALE WAS ABYSMAL ON HIS FIRST DAY ON THE JOB MR USSERY MET WITH THE LEAGUE'S DEPARTING GENERAL COUNSEL TO DISCUSS THE 25 PENDING LAWSUITS MOST INVOLVING CONTRACT DISPUTES AND TAX PROBLEMS AFTER ABOUT 20 MINUTES THE OTHER ATTORNEY EXCUSED HIMSELF OSTENSIBLY TO GO TO THE RESTROOM AND NEVER RETURNED THERE WERE TIMES I WONDERED WHAT I'D GOTTEN MYSELF INTO HE SAYS HIS FIRST CONTRACT NEGOTIATION WITH THE NBA DIDN'T DO MUCH TO ERASE THOSE DOUBTS MR KAZE A LONGTIME SPORTS PUBLICIST WITH LITTLE MANAGEMENT EXPERIENCE CAME TO THE NEW YORK MEETING WITH A HANDWRITTEN LIST OF 18 PROPOSALS TO STRENGTHEN NBACBA TIES IN A TENSE BRIEF MEETING MR STERN AIRILY DISMISSED 17 OF THE PROPOSALS WITHOUT DISCUSSION MR USSERY DUG IN HIS HEELS DETERMINED NOT TO BE EMBARRASSED LIKE THAT AGAIN HE NEGOTIATED SETTLEMENTS OF MOST OF THE LAWSUITS AND GOT THE REST DISMISSED HE REGISTERED TEAM LOGOS FOR THE FIRST TIME AND WROTE LICENSING AGREEMENTS WHEN MR KAZE RESIGNED IN MID1991 UNDER PRESSURE FROM DISCONTENTED OWNERS THE OWNERS NAMED MR USSERY COMMISSIONER THE LEAGUE'S FIFTH SINCE 1986 THE FIRST THING HE DID WAS LISTEN TO WHAT WE THOUGHT SAYS TOM RUBINS GENERAL PARTNER OF THE GRAND RAPIDS MICH HOOPS THEN HE DISTILLED IT AND CAME UP WITH SOMETHING THAT SERVED ALL OF US AMONG HIS ACCOMPLISHMENTS OWNERS SAY IS A RULE REQUIRING NEW FRANCHISES TO STAY PUT FOR AT LEAST THREE YEARS A MOVE DESIGNED TO CREATE STABILITY AND FOSTER FAN LOYALTY HE ALSO SET FINANCIAL STANDARDS FOR TEAM OWNERSHIP IN ORDER TO DISCOURAGE THE UNDERCAPITALIZED MR USSERY ALSO BEGAN OFFERING HIS OWN STAFF AS MANAGEMENT CONSULTANTS TO THE OWNERS AS ONE INDICATOR OF THE LEAGUE'S IMPROVED IMAGE LAST YEAR FOR THE FIRST TIME A CBA FRANCHISE THE YAKIMA WASH SUN KINGS SOLD FOR MORE THAN 1 MILLION BUT MR USSERY'S PROUDEST MOMENT CAME EARLIER THIS YEAR WHEN HE WENT BACK TO NEGOTIATE A NEW AGREEMENT WITH THE NBA HE FLEW TO NEW YORK ARMED WITH STATISTICS ON ATTENDANCE THE PERFORMANCE OF CBA PLAYERS IN THE NBA TESTIMONIALS FROM NBA TEAM EXECUTIVES AND A VIDEO SHOWING WHAT THE CBA HAD TO OFFER ITS BIG BROTHER THIS YEAR A RECORD 75 FORMER CBA PLAYERS ARE PLAYING IN THE NBA OR THE SHOW AS THE BIG LEAGUE IS KNOWN AMONG ASPIRING PLAYERS MR USSERY WALKED AWAY FROM THE NEGOTIATIONS WITH A THREEYEAR PACT CALLING FOR ANNUAL CASH PAYMENTS BY THE NBA OF 14 MILLION UP FROM 1 MILLION THE NBA AGREED TO RUN MARKETING MEETINGS FOR TEAM OWNERS AND IT ALSO AGREED TO PAY HALF THE SALARY OF ANY FORMER NBA PLAYER HIRED AS A CBA COACH BUT MR USSERY'S EFFECT ISN'T BEING FELT SOLELY ON THE BUSINESS SIDE RECOGNIZING THAT MOST CBA PLAYERS WON'T GRADUATE TO THE NBA THE COMMISSIONER CREATED A PROGRAM TO HELP THEM GRADUATE FROM COLLEGE WITH FUNDS FROM FORMER NBA AND CBA PLAYERS WHO HAVE RECOVERED FROM DRUG ADDICTION MR USSERY ALSO ESTABLISHED A DRUG PROGRAM THAT INCLUDES COUNSELING AND REHABILITATION AT THE SAME TIME THE CBA BRAGS THAT ITS POLICIES ARE THE STRICTEST AMONG PROFESSIONAL SPORTS JUST ONE VIOLATION OR REFUSAL TO TAKE A DRUG TEST RESULTS IN SUSPENSION DESPITE ITS PROGRESS THE CBA STILL HAS ITS PROBLEMS ACCORDING TO THE LEAGUE ONLY SIX OF ITS 16 TEAMS MADE MONEY LAST YEAR ALTHOUGH LOSSES AT THE OTHER 10 TEAMS HAVE NARROWED SHARPLY AND IN A LEAGUE OF OUTCASTS AND WANNABES ACHING TO BE ELSEWHERE THERE ALWAYS SEEM TO BE CRISES ON A RECENT TRIP TO SEE A GAME IN MOLINE ILL THE COMMISSIONER CALLED THE OFFICE TO COLLECT HIS MESSAGES AND LEARNED THAT AN OWNER WAS REFUSING TO PLAY A GAME ON GOOD FRIDAY A HOTEL MAID HAD FOUND MARIJUANA IN A PLAYER'S ROOM AND A CBA TELEVISION COMMENTATOR WAS THREATENING TO SUE IF HE WASN'T ASSIGNED TO BROADCAST THE LEAGUE'S CHAMPIONSHIP SERIES FOR ALL OF THAT MR USSERY EARNS IN THE LOW LOW LOW SIX FIGURES UNDOUBTEDLY MUCH LESS THAN HE WOULD BE MAKING HAD HE STAYED IN LAW AND A FAR CRY FROM MR STERN'S LOFTY 35 MILLION SALARY AND 10 MILLION SIGNING BONUS MR USSERY SAYS HE HAS TO DO SOME SERIOUS BUDGETING TO SUPPORT HIS WIFE AND TWO CHILDREN AND TO HELP SUPPORT HIS PARENTS WHO SOLD THEIR GROCERY AFTER LAST YEAR'S LOS ANGELES RIOTS FOR THE COMMISSIONER THE SEASON IS COMING TO A CLOSE THIS WEEK IS CHAMPIONSHIP WEEK IN THE CBA THE OMAHA NEB RACERS LEAD THE GRAND RAPIDS HOOPS 31 IN THE BESTOFSEVEN SERIES AND THE FIFTH AND POSSIBLY DECIDING GAME WAS SCHEDULED TO BE PLAYED LAST NIGHT IN OMAHA BUT THE WORK DOESN'T END THERE ARE NEGOTIATIONS WITH ESPN TO BROADCAST CBA GAMES NEXT SEASON ON A NEW CHANNEL THE CABLE SPORTS NETWORK IS CONSIDERING THERE IS MR USSERY'S PUSH FOR GREATER CORPORATE SPONSORSHIP AS THE LEAGUE'S IMAGE IMPROVES BUT HAVING GOTTEN A TASTE OF THE ACTION IN THE CBA HE SAYS HE WOULDN'T MIND HIS OWN SHOT AT THE SHOW SAYS MR USSERY I'M HOPEFUL PEOPLE WILL RECOGNIZE THE ABILITY I HAVE AND FORGET THE RACE ISSUE 9304300200 930430 DIVIDEND NEWS PAYOUT AT COMMUNITY PSYCHIATRIC CENTERS SUSPENDED UNIT CITED LAGUNA HILLS CALIF COMMUNITY PSYCHIATRIC CENTERS ON THE HEELS OF A FISCAL FIRSTQUARTER LOSS SAID IT SUSPENDED DIVIDEND PAYMENTS INDEFINITELY TO CONSERVE FUNDS FOR EXPANSION OF A NEW SUBSIDIARY THE COMPANY HAD PAID A QUARTERLY DIVIDEND OF NINE CENTS A SHARE SINCE 1988 ELIMINATING THE PAYOUT WILL SAVE AN INDICATED 155 MILLION ANNUALLY BASED ON THE COMPANY'S 43 MILLION SHARES OUTSTANDING FACING SEVERE PRICING PRESSURES AND REDUCED DEMAND IN ITS CORE PSYCHIATRIC HOSPITAL BUSINESS COMMUNITY PSYCHIATRIC ANNOUNCED PLANS LAST MAY TO DIVERSIFY INTO TREATMENT OF PATIENTS WHO REQUIRE INTENSIVE NURSING CARE BUT DON'T NEED TO BE IN A TRADITIONAL ACUTECARE HOSPITAL MANY OF THE NEW FACILITIES WILL BE CONVERTED PSYCHIATRIC HOSPITALS SIGNIFICANT OPPORTUNITIES EXIST WITHIN THE LONGTERM ACUTE CARE MARKET WHICH MAY BE LOST UNLESS THEY ARE AGGRESSIVELY PURSUED SAID RICHARD L CONTE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OPTIMAL EXPANSION OF THE NEW SUBSIDIARY WILL REQUIRE SUBSTANTIAL SHORTTERM FUNDING SO FAR THE UNIT HAS FOUR FACILITIES OF WHICH THREE ARE OPERATING AND THE OTHER IS BEING RENOVATED COMMUNITY PSYCHIATRIC PLANS TO SPEND BETWEEN 40 MILLION AND 70 MILLION OVER TWO YEARS TO BUILD ITS NEW SUBSIDIARY CALLED TRANSITIONAL HOSPITALS CORP A SPOKESWOMAN SAID NEW BORROWINGS IN ADDITION TO CASH ON HAND WILL BE NEEDED TO BANKROLL THE EXPANSION THE COMPANY'S CURRENT CASH POSITION IS IN THE LOWTOMID 30 MILLION RANGE THE SPOKESWOMAN SAID THE LOSS IN THE FIRST QUARTER ENDED FEB 28 WAS 379 MILLION OR 88 CENTS A SHARE THE LOSS INCLUDED A 349 MILLION CHARGE FOR PLANNED HOSPITAL SALES OR CLOSURES AND COSTS RELATED TO EMPLOYMENT REDUCTIONS MANY INVESTORS APPARENTLY HAD ANTICIPATED THE ANNOUNCEMENT WHICH CAME EARLY YESTERDAY BEFORE TRADING BEGAN COMPANY SHARES WERE QUOTED AT 9375 DOWN 625 CENTS IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY 9304300199 930430 CLINTON'S QUOTA QUEENS BY CLINT BOLICK NEW DEMOCRAT BILL CLINTON HAS TAKEN A SHARP LEFT TURN BY APPOINTING TWO CIVIL RIGHTS IDEOLOGUES TO MAJOR POSTS YESTERDAY HE NAMED UNIVERSITY OF PENNSYLVANIA LAW PROFESSOR LANI GUINIER A CARTER CIVIL RIGHTS ALUMNA AND FOR NINE YEARS A LAWYER WITH THE NAACP LEGAL DEFENSE AND EDUCATION FUND TO THE TOP POST AS ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS PREVIOUSLY HE NOMINATED NORMA CANTU THE SOUTHWESTERN REGIONAL COUNSEL FOR THE MEXICAN AMERICAN LEGAL DEFENSE AND EDUCATIONAL FUND MALDEF AS ASSISTANT SECRETARY FOR CIVIL RIGHTS IN THE DEPARTMENT OF EDUCATION MS GUINIER AND MS CANTU ARE FAR FROM HOUSEHOLD NAMES BUT THE DUO HAS THE LITIGATION EXPERIENCE AND MENTAL FIREPOWER TO PROFOUNDLY ALTER THE CIVIL RIGHTS LANDSCAPE BOTH HAVE BLAZED THE OUTER FRONTIERS IN THEIR RESPECTIVE AREAS OF VOTING LAW AND EDUCATION MS GUINIER SETS THE STANDARD FOR INNOVATIVE RADICALISM IN A 1989 HARVARD CIVIL RIGHTSCIVIL LIBERTIES LAW REVIEW ARTICLE SHE DECRIES FUNDAMENTAL FLAWS IN OUR DEMOCRACY URGING THAT CERTAIN SOCIAL GOODS HEALTH CARE DAY CARE JOB TRAINING HOUSING MUST BE RECOGNIZED AS BASIC ENTITLEMENTS IN THE SAME ARTICLE SHE PROCLAIMS THAT ANTIDISCRIMINATION LAWS MANDATE A RESULTORIENTED INQUIRY IN WHICH ROUGHLY EQUAL OUTCOMES NOT MERELY AN APPARENTLY FAIR PROCESS ARE THE GOAL AND CALLS FOR RACIAL QUOTAS IN JUDICIAL APPOINTMENTS BUT FOR THIS NEW VANGUARD QUOTAS ARE ONLY A STARTING POINT IN A 1991 VIRGINIA LAW REVIEW ARTICLE ENTITLED NO TWO SEATS THE ELUSIVE QUEST FOR POLITICAL EQUALITY MS GUINIER ARGUES THAT PROPORTIONAL LEGISLATIVE REPRESENTATION FOR MINORITY GROUPS WHICH THE VOTING RIGHTS ACT OF 1965 PRESENTLY IS CONSTRUED TO GUARANTEE IS NOT ENOUGH INSTEAD SHE DEMANDS EQUAL LEGISLATIVE OUTCOMES REQUIRING ABANDONMENT NOT ONLY OF THE ONE PERSON ONE VOTE PRINCIPLE BUT MAJORITY RULE ITSELF THE CURRENT VOTING RIGHTS QUOTA SYSTEM SHE COMPLAINS IS INADEQUATE SINCE IT ONLY PROTECTS THE RIGHT TO BE PRESENT' WHEREAS THE RIGHT TO CONTROL GOVERNMENT POLICY IS RESERVED TO THOSE WHO CAN ORGANIZE A MAJORITY THE SOLUTION SHE URGES IS TO ELIMINATE THE WINNERTAKEALL' FEATURES OF ANY MAJORITARIAN ELECTORAL OR LEGISLATIVE VOTING PROCESS IN WHICH THE MINORITY IS IDENTIFIABLE RACIALLY HOMOGENOUS INSULAR AND PERMANENT MS GUINIER WOULD INVOKE THE VOTING RIGHTS ACT IN SUCH CIRCUMSTANCES TO ELIMINATE ONE PERSON ONE VOTE PROCEDURES AND THE REQUIREMENT OF WINNING ELECTORAL OR LEGISLATIVE MAJORITIES INSTEAD SHE WOULD CREATE AN AGGREGATING DEVICE WITH WHICH VOLUNTARY MINORITY INTEREST CONSTITUENCIES COULD CHOOSE TO CUMULATE THEIR VOTES TO EXPRESS THE INTENSITY OF THEIR DISTINCTIVE GROUPS INTERESTS IN THE ELECTION CONTEXT THIS MEANS 1 ELIMINATING SINGLEMEMBER LEGISLATIVE DISTRICTS 2 GIVING EACH VOTER THE SAME NUMBER OF VOTES AS OPEN SEATS 3 ALLOWING VOTERS TO SPREAD OUT THEIR VOTES AMONG CANDIDATES OR CUMULATE THEM AND 4 ELIMINATING THE MAJORITY THRESHOLD FOR ELECTION IN A CONTEST FOR NINE LEGISLATIVE SEATS FOR INSTANCE A CANDIDATE COULD WIN WITH JUST OVER 9 OF THE VOTES UNDER THIS COMPLEX FORMULA IN THE LEGISLATIVE ARENA SIMPLEMINDED NOTIONS OF MAJORITY RULE MS GUINIER ASSERTS INTERACT WITH RACIAL BLOCK VOTING TO MAKE STATUTORILY PROTECTED GROUPS PERENNIAL LEGISLATIVE LOSERS WHEREVER THIS IS TRUE SHE CONTENDS THE VOTING RIGHTS ACT SHOULD REQUIRE NEW PROCEDURES TO ENSURE A FAIRER DISTRIBUTION OF POLITICAL POWER THOUGH HER PROPOSALS IN THIS CONTEXT ARE AMORPHOUS THEY INCLUDE CUMULATIVE VOTING AND ELIMINATION OF MAJORITY THRESHOLDS TO ENSURE EACH GROUP HAS A RIGHT TO HAVE ITS INTERESTS SATISFIED A FAIR PROPORTION OF THE TIME WHETHER OR NOT THESE PROPOSALS HAVE MERIT AS PUBLIC POLICY MS GUINIER CLEARLY BELIEVES THEY ARE COMPELLED BY THE VOTING RIGHTS ACT WHICH SHE WOULD BE CHARGED WITH ENFORCING AS ASSISTANT ATTORNEY GENERAL MS GUINIER WOULD GRAFT ONTO THE EXISTING SYSTEM A COMPLEX RACIAL SPOILS SYSTEM THAT WOULD FURTHER POLARIZE AN ALREADY DIVIDED NATION LIKEWISE MS CANTU BRINGS TO HER CIVIL RIGHTS POST IN THE DEPARTMENT OF EDUCATION A ZEAL FOR SOCIAL ENGINEERING BOTH OLD AND NEW IN AUSTIN MS CANTU ARGUED UNSUCCESSFULLY THAT A COMMUNITY THAT HAS DESEGREGATED ITS SCHOOLS CANNOT PHASE OUT FORCED BUSING UNTIL RESIDENTIAL INTEGRATION IS ACHIEVED SINCE RESIDENTIAL RACIAL BALANCE ALMOST NEVER OCCURS IN MOST COMMUNITIES THE LOGICAL EXTENSION OF HER ARGUMENT IS SURPRISE BUSING AS A PERMANENT PART OF THE AMERICAN LANDSCAPE IN THE PAST FEW YEARS MS CANTU AND HER ALLIES HAVE TURNED THEIR ATTENTION TO FUNDING EQUITY SUITS IN WHICH COURTS ARE CALLED UPON TO EQUALIZE SPENDING AMONG SCHOOL DISTRICTS THE APPOINTMENTS OF MS GUINIER AND MS CANTU WOULD PLACE THE POWERFUL FEDERAL CIVIL RIGHTS ARSENAL IN THE HANDS OF IDEOLOGUES IT ALSO WOULD BLUR THE LINES BETWEEN ADVOCACY GROUPS AND GOVERNMENT AGENCIES AS THEY WERE IN THE PREREAGAN YEARS WHEN THE EXECUTIVE BRANCH SUBORDINATED LAW ENFORCEMENT TO ITS IDEOLOGICAL AGENDA IF THESE NOMINATIONS ARE PART OF MR CLINTON'S PAYBACK TO EXTREME LEFTWING ELEMENTS OF THE DEMOCRATIC PARTY THE PRICE MAY PROVE TOO HIGH REPUBLICANS LEARNED IN THE MIDTERM SENATE ELECTIONS IN 1990 BUT FORGOT TWO YEARS LATER THAT VOTERS WHITE OR BLACK DON'T LIKE QUOTAS WHITE VOTERS OFTEN VIEW QUOTAS AS A BARRIER TO OPPORTUNITY WHILE FEW BLACKS OR OTHER MINORITIES VIEW THEM AS BENEFICIAL IN THEIR INDIVIDUAL CIRCUMSTANCES MR CLINTON OWES HIS ELECTION IN NO SMALL PART TO THE DISAPPEARANCE OF THE Q WORD FROM THE POLITICAL LEXICON IN 1992 IF HE PERSISTS IN ENTRUSTING THE CIVIL RIGHTS LAW ENFORCEMENT APPARATUS TO THE LIKES OF MS GUINIER AND MS CANTU THE INYOURFACE CIVIL RIGHTS AGENDA THEY NO DOUBT WILL PROMOTE MAY ULTIMATELY PROVE THE MOST INCENDIARY OF POLITICAL MISCALCULATIONS MR BOLICK IS LITIGATION DIRECTOR AT THE INSTITUTE FOR JUSTICE IN WASHINGTON AND AUTHOR OF GRASSROOTS TYRANNY THE LIMITS OF FEDERALISM CATO INSTITUTE 1993 9304300198 930430 FINANCING BUSINESS BAKER HUGHES INC BAKER HUGHES INC HOUSTON SAID IT SOLD 335 MILLION OF NOTES DUE IN 2008 THE OIL AND NATURAL GAS INDUSTRY SERVICES AND PRODUCTS COMPANY SAID PROCEEDS WILL BE USED TO PAY CERTAIN DEBT 9304300197 930430 SOTHEBY'S HOLDINGS SAYS 1STQUARTER LOSS SHRANK TO 52 MILLION NEW YORK SOTHEBY'S HOLDINGS INC REPORTED A NARROWER FIRSTQUARTER LOSS BUT SAID REVENUE FROM ITS PRIMARY BUSINESS OF AUCTIONING FINE ART EDGED LOWER FROM THE YEAREARLIER PERIOD THE AUCTION HOUSE SAID IT HAD A LOSS OF 52 MILLION EQUIVALENT TO NINE CENTS A SHARE COMPARED WITH A LOSS OF 57 MILLION OR 11 CENTS A SHARE LAST YEAR SOTHEBY'S FIRST AND THIRD QUARTERS ARE NORMALLY ITS WEAKEST DUE TO THE SEASONAL NATURE OF ITS BUSINESS MOST OF THE FIRM'S AUCTIONS ARE HELD IN THE SPRING AND FALL IN THE FIRST QUARTER AUCTION SALES SLID TO 1296 MILLION FROM 1414 MILLION DESPITE STRONG DEMAND FOR JEWELRY AND OLD MASTER PAINTINGS AND WHILE THE COMPANY REPORTED A STRONG PERFORMANCE BY ITS LUXURY REALESTATE SALES DIVISION SOTHEBY'S DECLINED TO PROVIDE REVENUE OF ITS REALESTATE OPERATIONS AND ITS PRIVATE ARTSELLING PARTNERSHIP ACQUAVELLA MODERN ART LOOKING FORWARD THE FIRM'S SECONDQUARTER RESULTS HINGE ON THE SUCCESS OF ITS HUGE SPRING AUCTIONS OF IMPRESSIONIST MODERN AND CONTEMPORARY PAINTINGS WHICH BEGIN NEXT MONDAY DAVID NASH WORLDWIDE HEAD OF PAINTING SALES FOR SOTHEBY'S SAID RESPONSE TO THE AUCTION CATALOGS IS VERY ENTHUSIASTIC THE FIRM'S OFFERINGS INCLUDE A PAUL CEZANNE STILL LIFE AND AN HENRI MATISSE PORTRAIT EACH EXPECTED TO SELL FOR MORE THAN 10 MILLION ALL TOLD THE COMPANY IS EXPECTING REVENUE OF 100 MILLION OR MORE FROM SALES HELD IN NEW YORK NEXT MONTH DESPITE THE OPTIMISTIC OUTLOOK SOTHEBY'S QUARTERLY RESULTS AND AUCTIONSALES TOTAL WERE ALMOST IDENTICAL TO THOSE OF ITS FIRST QUARTER OF 1991 WHEN THE PERSIAN GULF WAR PARALYZED THE ART MARKET MOREOVER THE 1991 SALES OCCURRED BEFORE THE FIRM'S JAN 1 INCREASE IN ITS BUYER'S COMMISSION TO 15 FROM 10 ON OBJECTS THAT SELL FOR 50000 OR LESS THE INCREASE WAS INTENDED TO BOOST THE BOTTOM LINE IN NEW YORK STOCK EXCHANGE TRADING SOTHEBY'S SHARES CLOSED YESTERDAY AT 1275 UP 125 CENTS 9304300196 930430 DIVIDEND NEWS MERRILL LYNCH LIFTS PAYOUT 17 CITING RECORD NET BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL PLAINSBORO NJ MERRILL LYNCH & CO ON THE HEELS OF RECORD FIRSTQUARTER PROFIT RAISED ITS QUARTERLY DIVIDEND 17 AT THE BROKERAGE CONCERN'S ANNUAL SHAREHOLDERS' MEETING HERE CHAIRMAN WILLIAM SCHREYER SAID THE COMPANY'S EXCELLENT MARKET POSITION AND STRONG PROFITABILITY ENABLED IT TO INCREASE ITS DIVIDEND FOR THE SECOND YEAR IN A ROW THE DIVIDEND RAISED TO 35 CENTS A SHARE FROM 30 CENTS IS PAYABLE MAY 26 TO SHARES OF RECORD MAY 10 AT THE MEETING SHAREHOLDERS ALSO APPROVED A RESOLUTION TO ALLOW MERRILL LYNCH TO INCREASE AUTHORIZED COMMON SHARES TO 500 MILLION FROM 200 MILLION HOWEVER MERRILL OFFICIALS SAID THERE WERE NO IMMEDIATE PLANS FOR A PUBLIC STOCK OFFERING THERE WERE ABOUT 110 MILLION COMMON SHARES OUTSTANDING AS OF MARCH 2 AS PREVIOUSLY REPORTED MERRILL'S FIRSTQUARTER EARNINGS INCREASED 57 TO 342 MILLION OR 302 A SHARE FROM THE YEAREARLIER PERIOD TOTAL ASSETS UNDER MANAGEMENT STOOD AT 493 BILLION AT THE END OF THE QUARTER AT A NEWS CONFERENCE FOLLOWING THE ANNUAL MEETING JOHN L STEFFENS AN EXECUTIVE VICE PRESIDENT SAID MERRILL WAS VERY CLOSE TODAY TO BREAKING THE 500 BILLION MARK MR SCHREYER SAID THE APPOINTMENT OF ARTHUR LEVITT JR TO HEAD THE SECURITIES AND EXCHANGE COMMISSION WAS AN EXCELLENT CHOICE BECAUSE OF MR LEVITT'S GREAT KNOWLEDGE OF THE SECURITIES BUSINESS AND HIS FAMILIARITY WITH REGULATIONS AND TAX POLICY MR LEVITT PREVIOUSLY WAS CHAIRMAN OF THE AMERICAN STOCK EXCHANGE MR SCHREYER ALSO SAID THAT ANY INVESTIGATION BY MR LEVITT OR THE SEC INTO THE BURGEONING MARKET FOR DERIVATIVES A SOPHISTICATED FINANCIAL PRODUCT THAT OFTEN INVOLVES THE SWAPPING AMONG COMPANIES OF CURRENCIES AND LOANS WOULD BE WELCOMED THE SEC SAID EARLIER THIS WEEK IT WOULD LOOK INTO WHETHER WALL STREET FIRMS THAT DEAL IN DERIVATIVES SHOULD BE REQUIRED TO RAISE ADDITIONAL CAPITAL TO COVER THE INVESTMENT RISK OF THE SECURITIES THE SEC IS RIGHT TO ASK QUESTIONS ANY NEW PRODUCT SHOULD BE EXAMINED HE SAID SEPARATELY STEPHEN HAMMERMAN MERRILL LYNCH VICE CHAIRMAN AND GENERAL COUNSEL CONFIRMED THAT THE COMPANY HAD BEEN SUBPOENAED IN CONNECTION WITH A FEDERAL INVESTIGATION INTO A 29 BILLION NEW JERSEY TURNPIKE AUTHORITY BOND ISSUE FOR WHICH MERRILL SERVED AS ONE OF THE SENIOR MANAGERS HOWEVER MERRILL ISN'T A TARGET OF THE INVESTIGATION HE SAID 9304300195 930430 LAW ABA IS ASKING LAWYERS TO BOOST HELP FOR THE POOR BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL THE NATION'S BIGGEST LAW FIRMS ARE BEING ASKED BY THE AMERICAN BAR ASSOCIATION TO INCREASE THE TIME AND MONEY THEY ALLOT TO HELPING POOR PEOPLE GET LEGAL HELP THE INITIATIVE TO BE ANNOUNCED IN WASHINGTON AT A NEWS CONFERENCE WITH US ATTORNEY GENERAL JANET RENO TODAY ASKS THE NATION'S 500 LARGEST FIRMS THOSE WITH 65 LAWYERS OR MORE TO DONATE 3 TO 5 OF THE TOTAL HOURS THEY BILL CLIENTS ANNUALLY TO PRO BONO OR FREE LEGAL WORK THAT REPRESENTS ROUGHLY 60 TO 100 HOURS OF FREE ASSISTANCE A YEAR FOR THE AVERAGE LAWYER MORE THAN THE ASSOCIATION'S MODEL RULES OF PROFESSIONAL CONDUCT CURRENTLY RECOMMEND BUT IN ADDITION THE ABA IS ASKING LAW FIRMS TO SIGN A STATEMENT OF PRINCIPLES THAT DEFINES PRO BONO WORK AS PROVIDING LEGAL SERVICE TO PEOPLE OF LIMITED MEANS AND COMMITS LAW FIRMS TO DIRECTING AT LEAST HALF THEIR PROBONO EFFORTS TOWARD THAT END MUCH MORE THAN THE ABA'S CURRENT DEFINITION OF PROBONO WHICH INCLUDES CHARITY WORK AND SERVICE ON HOSPITAL AND ORCHESTRA BOARDS THE NEW DEFINITION IS AIMED MORE DIRECTLY AT THE POOR ABOUT 150 LAW FIRMS HAVE SIGNED UP FOR THE PROGRAM WHICH MARKS BOTH A NEW DIRECTION FOR THE ABA'S PROBONO EFFORTS AND AN ATTEMPT TO IMPROVE THE IMAGE OF LAWYERS AFTER YEARS OF BASHING FROM FORMER VICE PRESIDENT DAN QUAYLE AND LEGALREFORM ADVOCATES THIS REALLY THROWS THE SPOTLIGHT FROM THE STANDPOINT OF THE ADMINISTRATION ON THE POSITIVE SIDE OF THE LEGAL SYSTEM SAID SAN FRANCISCO ATTORNEY CURTIS M CATON THE ABA PROGRAM CHAIRMAN IN CHARGE OF THE EFFORT AT THE NEWS CONFERENCE TODAY MS RENO IS TO MEET WITH CLIENTS WHO HAVE ALREADY BENEFITED FROM FREE LEGAL AID FROM SOME OF THE NATION'S TOP FIRMS AMONG THEM WORKERS WHO STARTED AN EMPLOYEEOWNED BAKERY WITH HELP FROM A WALL STREET LAW FIRM AFTER BEING LAID OFF FROM THEIR JOBS THE THEME OF MS RENO'S INVOLVEMENT WILL BE SELF HELP AND IMPROVEMENT OF ECONOMIC CIRCUMSTANCES THROUGH THE LEGAL SYSTEM SAID MR CATON A LAWYER AT HELLER EHRMAN WHITE & MCAULIFFE IN SAN FRANCISCO THE ABA EARLIER THIS YEAR AMENDED ITS MODEL RULES OF PROFESSIONAL CONDUCT TO RECOMMEND THAT LAWYERS DONATE 50 HOURS OF FREE LEGAL SERVICE A YEAR BEFORE THE ABA'S RULES SPOKE ONLY OF ASPIRATIONAL GOALS RECOMMENDED NO SET HOURS AND FOCUSED ON THE INDIVIDUAL OBLIGATIONS OF LAWYERS THE NEW INITIATIVE SAID JIM JONES OF WASHINGTON LAW FIRM ARNOLD & PORTER RECOGNIZES THAT INDIVIDUAL ATTORNEYS' COMMITMENTS CAN BE MEANINGLESS WITHOUT THE LAW FIRM'S PARTICIPATION 9304300194 930430 FINANCING BUSINESS BANK OF NOVA SCOTIA BANK OF NOVA SCOTIA SAID IT PLANS TO ISSUE 250 MILLION US OF 6875 DEBENTURES IN THE US ON MAY 12 IT SAID THE DEBENTURES WON'T BE REDEEMABLE UNTIL THEY MATURE ON MAY 1 2003 IT SAID PROCEEDS WILL INCREASE THE BANK'S CAPITAL AND WILL BE USED TO FINANCE ITS GENERAL OPERATIONS UNDERWRITERS ARE GOLDMAN SACHS & CO AND SCOTIAMCLEOD USA INC 9304300193 930430 WHO'S NEWS QUEBECOR INC QUEBECOR INC PIERRE LEGRAND A SENIOR PARTNER AT THE LAW FIRM OF OGILVY RENAULT WAS NAMED A DIRECTOR OF THIS MONTREAL PUBLISHING PRINTING AND FORESTPRODUCTS COMPANY SUCCEEDING JEAN COUTU WHO RESIGNED FROM THE BOARD 9304300192 930430 FINANCING BUSINESS SAN DIEGO GAS & ELECTRIC CO SAN DIEGO GAS & ELECTRIC CO SAID IT REFINANCED 857 MILLION IN INDUSTRIAL DEVELOPMENT BONDS WHICH THE COMPANY SAID WOULD SAVE 65 MILLION IN INTEREST COSTS OVER 25 YEARS THE UTILITY SOLD 708 MILLION IN NEW TAXEXEMPT BONDS WITH A LOWER TRUE INTEREST COST OF 594 MATURING IN 2018 THE REMAINING 149 MILLION WAS SOLD THROUGH A PRIVATE PLACEMENT AT A VARIABLE RATE THE BONDS ORIGINALLY WERE ISSUED AT INTEREST RATES OF BETWEEN 9 AND 10 THE MOVE IS PART OF A PLAN WHICH WHEN CONCLUDED SHOULD RESULT IN THE REFINANCING OF 400 MILLION IN BONDS 9304300191 930430 MARKETING & MEDIA REHNQUIST REJECTS DELAY IN ENFORCING CABLETV LAW WASHINGTON CHIEF JUSTICE WILLIAM REHNQUIST DENIED A REQUEST BY CABLE COMPANIES TO HALT ENFORCEMENT OF PROVISIONS OF LAST YEAR'S CABLETV LAW THAT REQUIRE CABLE OPERATORS TO CARRY LOCAL TV STATIONS SEVERAL CABLE OPERATORS AND PROGRAMMERS INCLUDING TURNER BROADCASTING SYSTEM INC TIME WARNER INC AND TELECOMMUNICATIONS INC SOUGHT THE EMERGENCY DELAY UNTIL THE FULL SUPREME COURT COULD ACT ON AN APPEAL THE CABLE COMPANIES ARGUED THAT THE SOCALLED MUSTCARRY PROVISIONS VIOLATE THE FIRST AMENDMENT'S GUARANTEE OF FREE SPEECH BY SPECIFYING PROGRAMMING THAT LOCAL CABLE OPERATORS MUST TRANSMIT IN HIS DECISION CHIEF JUSTICE REHNQUIST SAID THAT IT SIMPLY IS NOT INDISPUTABLY CLEAR THAT APPLICANTS HAVE A FIRST AMENDMENT RIGHT TO BE FREE FROM GOVERNMENT REGULATION 9304300190 930430 MARKETING & MEDIA GUARDIAN OFFERS TO BUY LONRHO'S SUNDAY OBSERVER SPECIAL TO THE WALL STREET JOURNAL LONDON UK CONGLOMERATE LONRHO PLC SAID IT RECEIVED AN ACCEPTABLE OFFER FOR ITS SUNDAY NEWSPAPER THE OBSERVER FROM GUARDIAN & MANCHESTER EVENING NEWS PLC IN A BRIEF STATEMENT LONRHO SAID IT WAS CONSULTING THE BOARD OF THE OBSERVER AND SAID ANY SALE WOULD BE SUBJECT TO REGULATORY APPROVAL A SALE TO THE GUARDIAN WOULD MEAN THE 202YEAROLD OBSERVER THE WORLD'S OLDEST SUNDAY NEWSPAPER WOULD KEEP PUBLISHING SINCE THE GUARDIAN NEWSPAPER HAS NO SUNDAY EDITION GUARDIAN EXECUTIVES ALSO HAVE BEEN QUOTED SAYING THEY PLAN TO KEEP THE OBSERVER RUNNING LONRHO REPORTEDLY WAS CLOSE TO ACCEPTING AN OFFER FROM NEWSPAPER PUBLISHING LTD THE OWNER OF THE INDEPENDENT NEWSPAPER UNDER THAT DEAL THE OBSERVER WOULD HAVE BEEN CLOSED AND ITS STAFF FOLDED INTO THAT OF THE INDEPENDENT ON SUNDAY NEWSPAPER NEWSPAPER PUBLISHING WAS REPORTED TO HAVE OFFERED A 15 TO 20 STAKE IN ITSELF TO LONRHO ALONG WITH A DEFERRED CASH PAYMENT OF 20 MILLION 315 MILLION THE GUARDIAN'S OFFER COULDN'T INVOLVE EQUITY IN ITSELF SINCE IT IS OWNED BY A CHARITABLE TRUST LONRHO HAS BEEN SELLING ASSETS OVER THE PAST YEAR IN AN EFFORT TO REDUCE NET DEBT ABOUT 850 MILLION 134 BILLION 9304300189 930430 WHO'S NEWS MELLON BANK CORP MELLON BANK CORP PITTSBURGH WALTER R DAY III 47 YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF CHIEF COMMUNITY INVESTMENT OFFICER AND HEAD OF THE NEWLY CREATED COMMUNITY INVESTMENT DEPARTMENT OF THE BANK HOLDING COMPANY MR DAY WILL BE IN CHARGE OF COMPLIANCE WITH THE COMMUNITY REINVESTMENT ACT HE WAS FORMERLY SENIOR VICE PRESIDENT AND MANAGER OF THE CONSUMER LOAN GROUP OF THE COMPANY'S RETAIL BANKING SEGMENT NO SUCCESSOR HAS YET BEEN NAMED 9304300188 930430 CLUB MEDITERRANEE SAYS IT IS SHIFTING GROWTH STRATEGY SPECIAL TO THE WALL STREET JOURNAL PARIS HAVING AMASSED OVER 260 TRAVEL DESTINATIONS IN IDYLLIC LOCATIONS ACROSS THE GLOBE FRANCE'S CLUB MEDITERRANEE SA IS SHIFTING ITS GROWTH STRATEGY AWAY FROM DIRECT PROPERTY DEVELOPMENT IN FAVOR OF HOTEL ACQUISITIONS AND MANAGEMENT CONTRACTS WE'RE NOT LOOKING FOR ONSITE DIRECT INVESTMENT WE WILL SEEK OTHER TYPES OF OPPORTUNITIES THOUGH AND THE PRIORITY IS ASIA SAID SERGE TRIGANO VICE CHAIRMAN AND SON OF GILBERT TRIGANO THE CHAIRMAN WHEN THE WORLD ECONOMY PICKS UP AGAIN WE THINK JAPAN WILL SHOW THE BEST RATE OF GROWTH FOR OUR CUSTOMERS THE YOUNGER MR TRIGANO SPEAKING AT A SHAREHOLDERS MEETING SAID CLUB MED IS WORKING ON A PROJECT IN OKINAWA JAPAN IN COLLABORATION WITH NIPPON LIFE INSURANCE CO CLUB MED WOULD BE IN CHARGE OF OPERATING AND MARKETING THE VILLAGE BUT DEVELOPMENT AND CONSTRUCTION WOULD BE LEFT IN LOCAL HANDS THIS MODEL ALREADY HAS BEEN SET IN ASIA AS PART OF A CONTRACT RECENTLY STRUCK WITH CHINESE PARTNERS FOR A CLUB MED ON HAINAN ISLAND GILBERT TRIGANO SAID A SIMILAR ACCORD IN VIETNAM AWAITS FINAL APPROVAL BY HANOI THE NEW APPROACH WILL ALLOW CLUB MED TO CUT INVESTMENT SPENDING AT A TIME WHEN RECENT ACQUISITIONS MUST BE NURTURED THROUGH CONTINUING ECONOMIC WEAKNESS THE ELDER MR TRIGANO SAID THE WINTER SEASON OF THE CURRENT FISCAL YEAR WHICH ENDS OCT 31 1993 WAS ABOUT BREAKEVEN FOR THE WHOLE YEAR THE CHAIRMAN BACKED AWAY FROM GIVING A FIRM PREDICTION GIVEN UNCERTAINTIES ABOUT THE KEY SUMMER SEASON BUT MAY RESERVATIONS ARE UP 2 TO 3 FROM MAY 1992 DESPITE SLUGGISH DEMAND CLUB MED SWUNG TO NET GROUP PROFIT OF 161 MILLION FRENCH FRANCS 302 MILLION LAST YEAR FROM A 17 MILLION FRANC LOSS IN THE FISCAL YEAR ENDED IN 1991 THE CHAIRMAN DESCRIBED THE BUSINESS ENVIRONMENT AS UNEVEN STRESSING THAT SEVERAL ONCEPREMIER DESTINATIONS HAVE BEEN HURT BY CIVIL UNREST THE LIST INCLUDES YUGOSLAVIA EGYPT SENEGAL AND HAITI BUT SKI VILLAGES DID WELL THIS WINTER AND THE CLUB MED ONE SAILING CRUISE SHIP LAUNCHED IN 1990 IS TURNING A PROFIT ON THE INVESTMENT SIDE EXPENDITURES WILL FALL TO 650 MILLION FRANCS THIS YEAR FROM 145 BILLION FRANCS IN THE FISCAL YEAR ENDED IN 1992 NET CONSOLIDATED DEBT OF 29 BILLION FRANCS REPRESENTING 72 OF EQUITY WILL HOLD STEADY THE CLUB SAID THE 16VILLAGE CLUB AQUARIUS CHAIN PURCHASED IN EARLY 1991 LOST MONEY WHILE THE DEFICIT IS EXPECTED TO DECLINE SIGNIFICANTLY THIS YEAR GILBERT TRIGANO SAID ASIAN CLUBS ACTUALLY FALL UNDER THE GROUP'S USBASED UNIT CLUB MED INC WHICH LAST MONTH REPORTED A 21 RISE IN NET PROFIT DURING THE FISCAL QUARTER ENDED JAN 31 1993 THE UNIT IS EXPECTED TO SHOW STRONG GROWTH THIS YEAR WITH THE OPENING OF THE LINDEMAN ISLAND RESORT IN AUSTRALIA AND COLUMBUS ISLAND IN THE BAHAMAS 9304300187 930430 WHO'S NEWS JOHNSON & HIGGINS JOHNSON & HIGGINS NEW YORK THE INTERNATIONAL INSURANCE BROKERAGE FIRM NAMED PAUL MERLINO 34 YEARS OLD AREA COORDINATOR FOR EASTERN EUROPE AND THE NATIONS OF THE FORMER SOVIET UNION THE POSITION IS NEW MR MERLINO CURRENTLY A VICE PRESIDENT IN THE FIRM'S LONDON OFFICE ALREADY IS WORKING WITH A NUMBER OF CLIENTS IN THOSE REGIONS A SPOKESMAN SAID HE WILL CONTINUE TO BE BASED IN LONDON 9304300186 930430 MCKESSON ACQUISITION SAN FRANCISCO MCKESSON CORP SAID IT ACQUIRED A 23 INTEREST IN NADRO SA DE CV MEXICO'S LEADING PHARMACEUTICAL DISTRIBUTOR FOR APPROXIMATELY 50 MILLION WITH AN OPTION TO ACQUIRE AN ADDITIONAL 9 OF NADRO'S COMMON STOCK MCKESSON'S INTEREST REPRESENTS ABOUT 44 MILLION SHARES OF NADRO'S 196 MILLION SHARES OUTSTANDING MCKESSON A DRUG AND FOOD DISTRIBUTION CONCERN SAID THE ACQUISITION IS PART OF ITS NORTH AMERICAN EXPANSION STRATEGY 9304300185 930430 HEDGED BET AS GENENTECH AWAITS NEW TEST OF OLD DRUG ITS PIPELINE FILLS UP TPA IS ON THE LINE AGAIN BUT FIRM IS CHURNING OUT A HOST OF NEW PRODUCTS KEEPING ITS SCIENTISTS HAPPY BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL SOUTH SAN FRANCISCO CALIF BIOTECHNOLOGY'S REIGNING HIGH ROLLER GENENTECH INC IS ABOUT TO WIN OR LOSE A HUGE MEDICAL BET THOSE CONCERNED ABOUT THE COST OF HEALTH CARE IN AMERICA HAVE A STAKE IN THE OUTCOME AS WELL TODAY RESEARCHERS WILL DISCLOSE RESULTS OF A HUGE GENENTECHFINANCED TRIAL PERHAPS THE MOST EXPENSIVE EVER LAUNCHED TO RETEST A PROVEN DRUG THE COMPANY IS HOPING AGAINST HOPE THAT THE TEST WILL SHOW SOMETHING PREVIOUS TRIALS DIDN'T THAT A GENENTECH HEART DRUG COSTING 2200 A DOSE IS SUPERIOR TO AN OLDER RIVAL DRUG THAT COSTS ONLY 200 A SHOT GENENTECH HAS SPENT 55 MILLION FUNDING A 41000PATIENT RESTUDY OF ITS SIXYEAROLD CLOT BUSTER TPA WHICH IT SELLS AS ACTIVASE MY FRIENDS IN THE PHARMACEUTICAL INDUSTRY THINK I'M NUTS SAYS GENENTECH PRESIDENT G KIRK RAAB BUT TPA'S SHARE OF THE CLOTBUSTING MARKET HAS BEEN DWINDLING THIS IS A LONGSHOT BID TO TURN IT AROUND MANY ANALYSTS THINK THIS TEST WILL COME OUT LIKE PREVIOUS ONES SHOWING HEARTATTACK VICTIMS TO SURVIVE NO BETTER WHEN GIVEN TPA THAN IF THEY GET STREPTOKINASE FROM SWEDEN'S ASTRA AB AND KABI FARMACIA AB AND GERMANY'S HOECHST AG GIVEN THE PRICE DIFFERENCE SUCH A DRAW WOULD BE THE SAME AS A LOSS TPA SALES WOULD HEMORRHAGE BUT IF TPA IS SHOWN TO BE SUPERIOR IN THE TRIAL RUN BY THE CLEVELAND CLINIC CARDIOLOGISTS MAY FACE PRESSURE TO ADMINISTER THE GENENTECH PRODUCT TO HEARTATTACK PATIENTS IN SPITE OF ITS HIGHER COST FOR GENENTECH THE TPA CASE HAS BEEN A SEMINAL EVENT THE DEEP DISAPPOINTMENT OF PAST TESTS AGAINST STREPTOKINASE WHICH KEPT TPA FROM BEING THE BLOCKBUSTER EXECUTIVES ASSUMED IT WOULD BE SHOCKED THE COMPANY INTO TIGHTLY REFOCUSING ITS EFFORTS BECAUSE OF THAT PLUS A TIMELY CASH INFUSION THE COMPANY THAT PIONEERED THE BIOTECHNOLOGY INDUSTRY IS NOW SO MUCH BETTER DISCIPLINED AND FUNDED THAT EVEN IF THE BIG TEST DOESN'T GO ITS WAY ITS PROSPECTS SEEM BRIGHT GENENTECH HAS SPENT 11 BILLION ON RESEARCH AND DEVELOPMENT OVER THE PAST DECADE INCLUDING 279 MILLION LAST YEAR ALONE THAT WAS 55 OF ITS TOTAL REVENUE COMPARED WITH RIVAL AMGEN INC'S R&D SPENDING RATE OF 18 OF REVENUE BEHIND GENENTECH'S R&D PROGRAM ARE THE DEEP POCKETS AND SCIENTIFIC LAISSEZFAIRE OF ITS SWISS PARENT ROCHE HOLDING LTD AHEAD LIE THE PLENTIFUL PRODUCTS SOON TO EMERGE FROM ITS PIPELINE AMONG THEM IS DNASE MEANT TO EASE CLOGGING OF THE LUNGS OF CYSTIC FIBROSIS PATIENTS IT IS CLOSE TO FOOD AND DRUG ADMINISTRATION APPROVAL AND IF IT GETS IT SOME ANALYSTS THINK DNASE COULD HAVE INITIAL SALES OF 250 MILLION A YEAR FOR CYSTIC FIBROSIS LATER DOUBLING TO 500 MILLION A YEAR IF USE IS EXPANDED TO CHRONIC BRONCHITIS AROUND 1998 OTHER GENENTECH DRUGS WILL TARGET CANCER AIDS NEUROLOGIC DISEASE ALLERGY AND INFLAMMATION THEY'RE LIKE THE BELL LABS OF BIOTECHNOLOGY SAYS ANALYST DENISE GILBERT OF SMITH BARNEY IN SAN FRANCISCO AFTER A SIXYEAR DROUGHT STARTING IN LATE 1994 YOU COULD SEE A NEW PRODUCT EVERY YEAR OR TWO LONGTERM EARNINGS FORECASTS ARE NOTORIOUSLY SHAKY BUT MS GILBERT IS WILLING TO HAZARD ONE PROFIT OF 358 A SHARE IN 1998 COMPARED WITH 18 CENTS A SHARE IN 1992 BUT IT ISN'T JUST SPENDING POWER THAT HAS CHANGED AT GENENTECH SINCE ROCHE INVESTED IN 1990 SO HAS GENENTECH'S DISCIPLINE THE COMPANY NOW ABANDONS PROJECTS THAT DON'T HOLD ENOUGH COMMERCIAL PROMISE IT HAS CUT IN HALF ITS BACKLOG OF RESEARCH PROJECTS FREEING SCIENTIFIC TALENT TO ACCELERATE WORK ON POSSIBLE HOME RUNS WE HAD TOO MUCH ON OUR PLATE SAYS ARTHUR LEVINSON SENIOR VICE PRESIDENT FOR RESEARCH WHILE DOING THIS THE COMPANY HAS PRESERVED ITS ENTREPRENEURIAL CULTURE BY ENCOURAGING SCIENTISTS TO PUBLISH THEIR DISCOVERIES AND MOST IMPORTANT BY LETTING THEM SPEND 20 OF THEIR TIME ON THEIR OWN PROJECTS IT'S LIKE A UNIVERSITY HERE EXCEPT YOU'RE BETTER PAID SAYS ONE SCIENTIST LAURENCE LASKY GENENTECH THE FOUNDER 15 YEARS AGO OF THE NEW INDUSTRY OF GENESPLICING BACTERIA TO YIELD NEW PROTEINS HAD AN AWKWARD ADOLESCENCE IT THOUGHT TPA TISSUE PLASMINOGEN ACTIVATOR WOULD BE A BLOCKBUSTER EXPECTING UNIVERSAL ACCLAIM BY HEART DOCTORS GENENTECH FAR OVERESTIMATED ANNUAL SALES AT 1 BILLION SO THAT THE SALES ACTUALLY REALIZED 180 MILLION A YEAR MAKE IT LOOK LIKE A FAILURE THANKS TO SEVERAL LARGE STUDIES SHOWING TPA TO BE JUST ABOUT EVEN WITH THE CHEAPER DRUG IN SURVIVAL RATES EVEN THOUGH IT OPENS ARTERIES FASTER TPA'S SHARE OF THE WORLD CLOTBUSTING MARKET HAS ERODED FROM TWOTHIRDS SHORTLY AFTER ITS 1987 INTRODUCTION TO HALF TODAY GENENTECH THEN MANAGED TO GET ONLY ONE OTHER PRODUCT APPROVED UNDER ITS OWN LABEL GAMMA INTERFERON FOR A RARE IMMUNE DISORDER OF CHILDREN IT BRINGS IN JUST 29 MILLION A YEAR MEANWHILE WITH MONEY TIGHT TENSIONS HAD DEVELOPED BETWEEN THE COMPANY'S VISIONARY COFOUNDER CHAIRMAN ROBERT SWANSON AND ITS PRESIDENT AND CHIEF EXECUTIVE MR RAAB A PRAGMATIC FORMER DRUG SALESMAN ENTER ROCHE HOLDING AFTER A SECRETIVE COURTSHIP WITH CODE NAMES AND CLANDESTINE MEETINGS IN SWISS HOTELS ROCHE PAID 21 BILLION FOR A 60 STAKE SINCE RAISED TO 63 AN OPTION IT HOLDS TO BUY THE REST AT 60 A SHARE BY MID1995 HAS KEPT GENENTECH STOCK AFLOAT IN THE MID30S THROUGH DRUGCOMPANY MARKET DOLDRUMS ALTHOUGH THE STOCK HAS BEEN SLIPPING THIS WEEK IT CLOSED YESTERDAY AT 3275 DOWN 1125 ON THE NEW YORK STOCK EXCHANGE ROCHE CHAIRMAN FRITZ GERBER DIDN'T RESPOND TO REQUESTS TO BE INTERVIEWED ABOUT HIS PLANS FOR GENENTECH MONEY IN HAND GENENTECH HAS ENGINEERED A COURSE CORRECTION IT HAS INSTALLED A NEW RESEARCH DIRECTOR TIGHTENED DEVELOPMENT STANDARDS AND MADE CREATIVE ALLIANCES WITH YOUNGER VENTURES SUCH AS GENETHERAPY COMPANY GENVEC OF ROCKVILLE MD MR RAAB CONTENDS A STRONGER COMPANY WAS BORN FROM THE TPA DISAPPOINTMENT WE'VE COME LIGHT YEARS HE SAYS WHAT HAPPENED TO TPA WAS A GREAT SHOCK TO THIS ORGANIZATION BEFORE HE SAYS THERE WAS A FASCINATION WITH MOLECULAR BIOLOGY AND A CLINICAL DREAM THAT DROVE THINGS TODAY THE COMPANY TRIES TO PLAN FOR THE WORST CASE AT THE SAME TIME A MATURING GENENTECH IS STRUGGLING WITH THE DEPARTURE OF INSPIRATIONAL FIGURES SUCH AS DAVID GOEDDEL A FOUNDING SCIENTIST WHO WILL LEAVE IN AUGUST OUR CULTURE HAS BEEN CHANGING FOR A LONG TIME THE NEW ONE IS BEING DEFINED NOW SAYS VACCINE RESEARCHER PHIL BERMAN SOME SAY WE'RE IN AN IDENTITY CRISIS BUT HE AND OTHERS INSIST THE SPIRIT OF GENENTECH IS SIMPLY BEING INVENTED ANEW THE HEAD REINVENTER IS RESEARCH CHIEF DR LEVINSON A BOYISH HYPERKINETIC 42YEAROLD THOUGH GROOMED IN AN INTELLECTUAL MILIEU OF NOBEL LAUREATES HE KEEPS A PRAGMATIC FOCUS BY ORDERING HIS SCIENTISTS TO LEAVE THEIR LAB BENCHES FROM DAY ONE AND TALK TO PRACTICING DOCTORS IT WAS DR LEVINSON'S UNHAPPY TASK TO CUT GENENTECH'S LIST OF 70 RESEARCH PROJECTS BY HALF FIRST TO GO WAS RELAXIN A PROTEIN TO EASE CHILDBIRTH FEATURED IN A PAST ANNUAL REPORT WITH A GAUZY PHOTO OF A NEW MOTHER IT DIDN'T MEET EXPECTATIONS HE SAYS OTHER CASUALTIES AN INJECTABLE ANTICLOTTING DRUG AND TUMOR NECROSIS FACTOR AN INTRIGUING BUT TOXIC ANTICANCER SUBSTANCE DR LEVINSON MADE IT HARDER FOR PROJECTS TO GET PROMOTED FROM THE RESEARCH STAGE TO PRODUCT DEVELOPMENT A STEP THAT STEEPLY RAISES COSTS WITH MR RAAB HE AGREED TO FOCUS ON FOUR AREAS ENDOCRINOLOGY SUCH AS GROWTH HORMONE CARDIOLOGY SUCH AS TPA IMMUNOLOGY SUCH AS A DRUG FOR ASTHMA AND NEUROSCIENCE SUCH AS NERVE GROWTH FACTOR ROCHE'S MONEY FREED EXECUTIVES TO SET ASIDE 10 OF RESEARCH FUNDS FOR PRODUCTS AIMED AT THE NEXT DECADE INSTEAD OF OPERATING QUARTERTOQUARTER AS REVENUE ALLOWED LONGRANGE FUNDING HAS UNDERWRITTEN AN AMBITIOUS PROGRAM IN THE NEW FRONTIER OF THE BRAIN SAYS FRANZ HEFTI A NEUROLOGIST JUST RECRUITED FROM ACADEMIA IT IS SEEKING PRODUCTS AMONG NATURAL CHEMICALS THAT NOURISH BRAIN AND NERVE CELLS NERVE GROWTH FACTOR FOR DAMAGE INFLICTED BY DIABETES OR CHEMOTHERAPY IS IN FIRSTSTAGE HUMAN TRIALS SUBSTANCES CALLED NEUROTROPHINS MAY ONE DAY TREAT STROKE OR DISEASES LIKE PARKINSON'S HUNTINGTON'S OR ALZHEIMER'S DR LEVINSON'S JOY IN THE SCIENCE HAS ADDED MORE VERVE TO GENENTECH'S RESEARCH EFFORTS JUMPING FROM HIS DESK HE FLINGS HIS ARMS WIDE TO ACT OUT THE MAKING OF A HUMANIZED MONOCLONAL ANTIBODY NOW BEING TESTED TO BLOCK A BREASTCANCER GENE BY SWAPPING MOUSE WITH HUMAN COMPONENTS YOU END UP WITH A MONOCLONAL THAT'S 95 HUMAN HE SAYS EXUBERANTLY TO NURTURE SUCH INVENTION GENENTECH CODDLES RESEARCHERS IN A NEW 80 MILLION RESEARCH CENTER A SCIENCE PALACE ON A HILL OVERLOOKING SAN FRANCISCO BAY LABS BOAST SWEEPING VIEWS WHILE IN A COURTYARD BELOW A BRONZE SCULPTURE DEPICTS FOUNDERS SWANSON AND HERBERT BOYER PLANNING THE COMPANY OVER A BEER AT A BAR TABLE BEFORE AN EXPERIMENT SCIENTISTS SOMETIMES SLIP A COIN INTO DR BOYER'S BRONZE BEER MUG FOR LUCK IT'S A FAR CRY FROM THE DAYS WHEN SCIENTISTS WORKED UNDER A MAKESHIFT PLASTIC CANOPY TO KEEP DUST FROM FALLING INTO THEIR TEST TUBES DESPITE THE GRANDEUR SCIENTISTS INSIST THEIR OLD SPIRIT IS INTACT RAUCOUS BEER BUSTS CALLED HOHO'S STILL ENLIVEN FRIDAY AFTERNOONS MOST CRUCIAL IS THE ONE DAY A WEEK THEY CAN DEVOTE TO PERSONAL RESEARCH THIS IS HOW THE CYSTIC FIBROSIS DRUG DNASE BEGAN AS THE PRIVATE OBSESSION OF STEVEN SHAK DIRECTOR OF PULMONARY RESEARCH DR SHAK WAS HAUNTED BY MEDICALSCHOOL MEMORIES OF PATIENTS WHOSE LUNGS WERE SO CONGESTED HE HAD TO SUCTION THEM OUT HE SOUGHT AN ENZYME TO CUT UP THE GENETIC DEBRIS IN THEIR LUNGS IN HIS PERSONAL TIME AT GENENTECH HE FOUND ONE THAT QUICKLY LIQUEFIED THE CONGESTION TODAY AFTER EXTENSIVE DEVELOPMENT AND TESTING DNASE IS AWAITING FDA REVIEW ANOTHER PROJECT THAT BEGAN AS A FLYER WAS STAFF SCIENTIST PAULA JARDIEU'S WORK TO ABORT ASTHMA ATTACKS SHE CREATED A MONOCLONAL ANTIBODY AIMED AT BLOCKING THE BODY'S ALLERGIC TRIGGER WHICH TOUCHES OFF A CASCADE OF WHEEZING AND SNEEZING CLINICAL TRIALS IN HUMANS COULD START IN LATE 1993 FOR ASTHMA WHICH AFFLICTS AN ESTIMATED 10 MILLION PEOPLE AND LATER FOR HAY FEVER AFFECTING 20 MILLION PEOPLE WHEN SCIENTIFIC SNAGS ARISE CAUSING CORPORATE BACKING TO DWINDLE RESEARCHERS HAVE SOMETIMES USED PERSONAL TIME TO KEEP PROJECTS ALIVE AN AIDS VACCINE WAS ALMOST DROPPED BUT DR BERMAN NURSED IT FOR ALMOST FOUR YEARS UNTIL SUCCESSFUL CHIMP STUDIES PUT IT BACK ON DEVELOPMENT TRACK A KEY TACTICAL CHALLENGE FOR THE NEW GENENTECH IS HOW TO PRICE PRODUCTS ESPECIALLY IF IT WANTS TO SELL DRUGS FOR SUCH COMMON MALADIES AS HAY FEVER TPA BURDENED BY ITS PRICE PREMIUM WAS HELD TO A PERFORMANCE STANDARD IT NEVER MET TO SUCCEED IN THE NEW ENVIRONMENT WARNS MS GILBERT OF SMITH BARNEY NEW DRUGS MUST SAVE YOU HEALTHCARE COSTS MR RAAB HAS HIRED A CREW OF DOCTORS WITH MBA DEGREES TO HONE PRICING STRATEGY HE POINTS TO AN IRONY THOUGH IN THE DEBATE OVER HEALTH AND COST DEATH AT AN EARLY AGE IS THE CHEAPEST OF ALL HE SAYS BUT THAT'S NOT WHAT WE'RE ABOUT 9304300184 930430 WHO'S NEWS CHATTEM INC CHATTEM INC CHATTANOOGA TENN SAMUEL E ALLEN 56 YEARS OLD AND A ALEXANDER TAYLOR II 39 WERE ELECTED DIRECTORS OF THE HEALTH AND BEAUTY CHEMICALS FIRM MR ALLEN IS CHAIRMAN OF GLOBALT INC AN INVESTMENTMANAGEMENT FIRM IN ATLANTA MR TAYLOR IS AN ATTORNEY WITH MILLER & MARTIN IN CHATTANOOGA THEY FILL ONE BOARD VACANCY AND SUCCEED WILSON NOLEN 66 A CONSULTANT TO BECTON DICKINSON & CO WHO'S RETIRING FROM THE BOARD 9304300183 930430 WHO'S NEWS MICHAEL BAKER CORP MICHAEL BAKER CORP PITTSBURGH THOMAS D LARSON 64 YEARS OLD A PRIVATE CONSULTANT AND FORMER ADMINISTRATOR OF THE FEDERAL HIGHWAY ADMINISTRATION WAS NAMED A DIRECTOR OF THIS ENGINEERING CONSTRUCTION AND OPERATIONS AND MAINTENANCE SERVICES CONCERN HE SUCCEEDS JAMES W WILCOCK WHO RETIRED FROM THE BOARD 9304300182 930430 WHO'S NEWS MATTEL INC MATTEL INC LOS ANGELES NED MANSOUR WAS PROMOTED TO SENIOR VICE PRESIDENT GENERAL COUNSEL AND SECRETARY OF THIS MAKER OF CHILDREN'S TOYS SUCCEEDING 58YEAROLD TIMOTHY REAMS WHO RETIRED MR MANSOUR PREVIOUSLY WAS VICE PRESIDENT AND ASSOCIATE GENERAL COUNSEL OF THE COMPANY 9304300181 930430 WHO'S NEWS AMERON INC AMERON INC PASADENA CALIF JAMES S MARLEN WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER HE WILL SUCCEED LR TOLLENAERE WHO WILL REMAIN AS CHAIRMAN OF AMERON A PIPE AND CONCRETE PRODUCTS MAKER MR MARLEN HAS BEEN VICE PRESIDENT OF GENCORP INC A MAKER OF REINFORCED PLASTICS AND OTHER PRODUCTS 9304300180 930430 WHO'S NEWS BALLY MANUFACTURING CORP BALLY MANUFACTURING CORP CHICAGO MICHAEL G LUCCI 53YEAROLD CHIEF OPERATING OFFICER OF THE COMPANY'S BALLY'S HEALTH & TENNIS CORP SUBSIDIARY WAS NAMED TO THE ADDITIONAL POST OF PRESIDENT OF THE UNIT SUCCEEDING DONAHUE WILDMAN 60 WHO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER BALLY OPERATES CASINO HOTELS AND FITNESS CENTERS 9304300179 930430 CATERPILLAR ALLOWS TSHIRTS THAT ATTACK ITS CHAIRMAN PEORIA ILL CATERPILLAR INC CALLED A TRUCE IN THE BATTLE OF THE TSHIRTS DONALD FITES THE CONSTRUCTIONEQUIPMENT COMPANY'S CHAIRMAN TOLD EMPLOYEES IN A LETTER THAT THE COMPANY WILL NO LONGER TAKE ACTION AGAINST WORKERS WHO WEAR CLOTHING OR BUTTONS ATTACKING ME IN MY ROLE AS CHAIRMAN AND CEO THE LETTER FOLLOWS SUSPENSIONS OF 109 UNITED AUTO WORKERS UNION MEMBERS WEDNESDAY FOR WEARING TSHIRTS WITH THE SLOGAN PERMANENTLY REPLACE FITES AT A CATERPILLAR FOUNDRY IN MAPLETON ILL CATERPILLAR DISAGREES WITH TWO REGIONAL OFFICES OF THE NATIONAL LABOR RELATIONS BOARD WHICH HAVE ISSUED COMPLAINTS UPHOLDING THE RIGHTS OF WORKERS TO WEAR THE TSHIRTS BUT MR FITES NOTED IT COULD BE YEARS BEFORE THE COURTS DECIDE THE ISSUE MR FITES REITERATED THAT COMPANY POLICY PROHIBITS WEARING SHIRTS OR OTHER ITEMS THAT ARE DIVISIVE BUT HE SAID UAW LEADERS ARE USING THE POLICY TO CREATE STAGED EVENTS AND TO DIVERT ATTENTION FROM THE UNION'S UNWILLINGNESS TO BREAK FROM PATTERN BARGAINING A UAW SPOKESMAN RESPONDED THAT THE UNION IS READY TO NEGOTIATE WHEN THE COMPANY WITHDRAWS THE CONTRACT PROPOSAL IT HAS ALREADY IMPLEMENTED 9304300178 930430 WHO'S NEWS FIRST FEDERAL SAVINGS & LOAN ASSOCIATION OF EAST HARTFORD CONN EAST HARTFORD CONN THIS S&L NAMED TWO NEW DIRECTORS EXPANDING BOARD MEMBERSHIP TO 11 NAMED WERE LAWRENCE R CHURCHILL 57 YEARS OLD AND VICE PRESIDENT OF PUBLIC AFFAIRS OF PRATT & WHITNEY A UNITED TECHNOLOGIES CORP UNIT AND LUENE HOLMES CORWIN 57 DEAN OF ACADEMIC AFFAIRS AT MANCHESTER COMMUNITY TECHNICAL COLLEGE MANCHESTER CONN 9304300177 930430 TECHNOLOGY NATIONAL CITY TO ASSIST BLIND BANK CUSTOMERS VIA TALKING COMPUTER CLEVELAND NATIONAL CITY CORP AND THE AMERICAN PRINTING HOUSE FOR THE BLIND HAVE INTRODUCED A TALKING COMPUTER FOR VISUALLY IMPAIRED BANK CUSTOMERS THE BANKING CONCERN SAID ITS KENTUCKY UNIT IS THE FIRST COMPANY TO OFFER THE SYSTEM WHICH IS CALLED NOMAD DESIGNED BY AUSTRALIAN DON PARKES NOMAD HAS A TOUCHSENSITIVE PAD WITH BRAILLE WORDS ABBREVIATIONS AND A FLOORPLAN OF THE BANK THE PAD CONNECTS TO THE NOMAD SYSTEM WHICH HAS SPEECH CAPABILITY TO TELL VISUALLY IMPAIRED BANK CUSTOMERS ABOUT PRODUCTS AND SERVICES OR WHERE CASHDISPENSING MACHINES TELLER WINDOWS AND SERVICE DESKS ARE LOCATED NATIONAL CITY SAID THE SYSTEM MANUFACTURED BY THE NONPROFIT ORGANIZATION AMERICAN PRINTING HOUSE FOR THE BLIND LOUISVILLE KY ALSO CAN BE USED IN SPECIAL EDUCATION CLASSES FOR SIGHTED STUDENTS DR PARKES OF THE UNIVERSITY OF NEWCASTLE IN NEW SOUTH WALES ORIGINALLY DEVELOPED THE SYSTEM TO AID A GEOGRAPHER WHO LOST HIS SIGHT THE BANK SAID 9304300176 930430 WHO'S NEWS DRUG EMPORIUM INC DRUG EMPORIUM INC COLUMBUS OHIO ROBERT MEEDER 64 YEARS OLD WAS NAMED TO THE BOARD OF THIS DEEPDISCOUNT DRUGSTORE CHAIN INCREASING ITS SIZE TO SEVEN MEMBERS MR MEEDER WHO IS CHAIRMAN OF HIS OWN INVESTMENT COMPANY FILLS A VACANCY 9304300174 930430 WHO'S NEWS CONSUMERS POWER CO CONSUMERS POWER CO JACKSON MICH DORIS F GALVIN AND ROYAL P LEFERE JR WERE ELECTED VICE PRESIDENTS OF THIS NATURAL GAS AND ELECTRIC UTILITY MS GALVIN 38 YEARS OLD JOINED CONSUMERS POWER IN 1974 IN THE COMPANY'S LEGAL DEPARTMENT SHE WAS NAMED DIRECTOR OF CASH MANAGEMENT AND ASSISTANT TREASURER IN 1989 MR LEFERE 45 JOINED CONSUMERS POWER IN 1970 AS AN ASSOCIATE RATES ANALYST HE WAS NAMED EXECUTIVE DIRECTOR OF RATES AND REGULATORY AFFAIRS IN 1991 9304300173 930430 WHO'S NEWS PLAYBOY ENTERPRISES INC PLAYBOY ENTERPRISES INC CHICAGO REBECCA S MASKEY 44 YEARS OLD FORMERLY VICE PRESIDENT FINANCIAL SERVICES AND TREASURER WAS NAMED TO THE NEW POST OF SENIOR VICE PRESIDENT FINANCE AND TREASURER OF THIS PUBLISHING AND ENTERTAINMENT CONCERN 9304300172 930430 WHO'S NEWS INVACARE CORP INVACARE CORP ELYRIA OHIO GERALD BLOUCH 46 YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF VICE PRESIDENT AND GENERAL MANAGER OF THE HOME CARE UNIT OF THIS HOME MEDICAL EQUIPMENT COMPANY MR BLOUCH HAD BEEN CHIEF FINANCIAL OFFICER SUCCEEDING HIM AS CHIEF FINANCIAL OFFICER IS THOMAS R MIKLICH 45 MR MIKLICH HAS BEEN EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT CLEVELANDBASED VAN DORN CO WHICH WAS ACQUIRED BY CROWN CORK & SEAL CO PHILADELPHIA 9304300171 930430 INTERNATIONAL GERMANCANADIAN'S FAILED EMPIRE PRODUCES BIZARRE TALE OF FINANCE BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL ZURICH WHEN KARSTEN VON WERSEBE'S BUSINESS EMPIRE COLLAPSED IN A HEAP OF DEBT LAST FALL HE APPEARED TO BE JUST ONE MORE CASUALTY OF THE US REALESTATE SLUMP THEN THE BANKRUPTCY LAWYERS AND INVESTIGATORS MOVED IN SIFTING THROUGH THE WRECKAGE OF HIS YORK HANNOVER GROUP OFFICIALS ARE TRYING TO FIGURE OUT WHETHER MR VON WERSEBE IS A PERPETRATOR OF MAJOR INTERNATIONAL FRAUD OR AS HE CLAIMS A VICTIM OF THE MACHINATIONS OF SWITZERLAND'S ILLUSTRIOUS ROTHSCHILD BANK AG SO FAR THEY ONLY KNOW FOR SURE THAT THE MILLIONS OF DOLLARS MR VON WERSEBE BORROWED FROM INVESTORS IN EUROPE AND NORTH AMERICA TO BUILD HIS BUSINESS HAVE DISAPPEARED MR VON WERSEBE 51 YEARS OLD IS A SOCCERMAD RESIDENT OF TORONTO WITH DUAL GERMAN AND CANADIAN CITIZENSHIP A FORMER ASSOCIATE DESCRIBES HIM AS SEEMING LIKE A PERFECT GENTLEMAN HE IS NO STRANGER TO CONTROVERSY IN THE PAST DECADE HE HAS ACHIEVED NOTORIETY IN GERMANY AS A CORPORATE RAIDER PICKED FIGHTS WITH MANY OF HIS BANKERS AROUND THE WORLD AND ON ONE OCCASION BEEN SUED IN A NORTH CAROLINA COURT BY US BUSINESS PARTNERS FOR ALLEGEDLY MISAPPROPRIATING FUNDS THE CASE WAS SETTLED IN THEIR FAVOR EVEN AT ITS PEAK YORK HANNOVER GROUP WHICH INCLUDED REAL ESTATE AND OTHER VENTURES IN GERMANY SWITZERLAND CANADA BERMUDA AND RALEIGH NC SEEMED TO BE PERMANENTLY SHORT OF CASH INVESTIGATORS SAY THEY ARE FINDING EVIDENCE THAT MR VON WERSEBE ALLEGEDLY MISLED AUTHORITIES BY INFLATING THE VALUE OF ASSETS OR MOVING THEM AROUND IN VIOLATION OF LOAN AND OTHER REGULATIONS HE DENIES ANY WRONGDOING THE MOST SERIOUS ALLEGATIONS AGAINST HIM ARE BEING INVESTIGATED BY PROSECUTORS IN GERMANY THE COUNTRY OF HIS BIRTH AND A CENTER FOR YORK HANNOVER BUSINESS IN THE LATE 1980S THE COURTAPPOINTED BANKRUPTCY TRUSTEE THERE ALLEGES MR VON WERSEBE SIPHONED BETWEEN 125 MILLION AND 187 MILLION OUT OF HIS GERMAN COMPANIES IN A JANUARY REPORT TO THE COURT THE TRUSTEE GERD G WEILAND ALSO SUGGESTS MR VON WERSEBE MAY HAVE BUILT A SYSTEM OF SHADOW COMPANIES WITHIN YORK HANNOVER THAT COULD HAVE BEEN USED TO LOOT THE GROUP BUT HE HASN'T BEEN ABLE TO TRACE WHERE THE MONEY WENT MR VON WERSEBE IS ALSO UNDER SCRUTINY IN CANADA IN CONNECTION WITH CASTOR HOLDINGS LTD A PROPERTY FINANCE GROUP THAT WENT BANKRUPT LAST JULY WITH EXPECTED LOSSES OF MORE THAN ONE BILLION CANADIAN DOLLARS US7866 MILLION CREDITORS WHICH INCLUDE SUCH FAMOUS NAMES AS SWISS BANK CREDIT SUISSE SUSPECT THEY MAY HAVE BEEN SWINDLED AND RECENTLY FILED A C127 MILLION SUIT IN QUEBEC'S SUPERIOR COURT IN MONTREAL AGAINST CASTOR'S AUDITORS COOPERS & LYBRAND CREDIT SUISSE IS A UNIT OF CS HOLDING AG MR VON WERSEBE WAS COFOUNDER CHAIRMAN AND A MAJOR SHAREHOLDER OF CASTOR UNTIL THE MID1980S WHEN HE APPEARED TO SPLIT WITH HIS BUSINESS PARTNER WOLFGANG STOLZENBERG BUT GERMAN AND CANADIAN OFFICIALS SAY MR VON WERSEBE BORROWED MORE THAN C200 MILLION FROM CASTOR AND CONTINUED TO HAVE FINANCIAL TIES AFTER LEAVING IT MR VON WERSEBE DESCRIBES DR WEILAND'S ALLEGATIONS IN GERMANY AS ABSOLUTE RUBBISH AND INSISTS HE HAS NO OUTSTANDING OBLIGATIONS TO CASTOR IF ANYONE IS OWED MONEY IT'S ME HE SAYS ADDING THAT HIS NET WORTH TODAY IS ZERO SIPPING TEA IN ZURICH'S BAUR AU LAC A LUXURY LAKESIDE HOTEL WHERE HE STILL STAYS ON HIS FREQUENT VISITS TO SWITZERLAND MR VON WERSEBE PRESENTS HIMSELF AS A VICTIM NOT A VILLAIN THE REAL CULPRIT OF HIS RISE AND FALL HE CLAIMS IS ROTHSCHILD BANK HE DESCRIBES THE BANK OWNED BY EUROPE'S FAMOUS ROTHSCHILD FINANCIAL DYNASTY AS OUR JOINTVENTURE PARTNERS THE BANK HAS ALREADY BEEN TARNISHED BY ALLEGATIONS OF WRONGDOING MADE BY A FORMER OFFICER THAT SCANDAL HAS IN TURN SHED LIGHT ON THE BANK'S BIZARRE RELATIONSHIP WITH MR VON WERSEBE WHO BECAME ITS LARGEST INDIVIDUAL CUSTOMER ALTHOUGH IN A 1984 INTERNAL MEMORANDUM ROTHSCHILD BANK DISMISSED MR VON WERSEBE AS SHOWING SIGNS OF MEGALOMANIA IT WENT ON TO LEND HIM AN ESTIMATED 150 MILLION LATER IN THAT DECADE ENABLING HIM TO BUILD HIS HIGHLY LEVERAGED EMPIRE MUCH OF THAT MONEY WAS CHANNELED THROUGH A WEB OF FRONT COMPANIES IN PANAMA LIBERIA AND ELSEWHERE THAT THE BANK SET UP FOR HIM THE BANK WON'T COMMENT IN DETAIL ON ITS RELATIONSHIP WITH MR VON WERSEBE CITING BANKING SECRECY AND CONTINUING INVESTIGATIONS BUT IT HAS FILED A SUIT AGAINST MR VON WERSEBE WITH THE ZURICH DISTRICT ATTORNEY AND A SENIOR ROTHSCHILD OFFICIAL DISMISSES THE TALK OF A PARTNERSHIP SAYING EVERY BUSINESSMAN WHO HAS GONE UNDER BLAMES HIS BANK FOR PULLING THE PLUG NONETHELESS THE WERSEBEROTHSCHILD RELATIONSHIP IS ASTONISHING DR WEILAND THE GERMAN BANKRUPTCY TRUSTEE SAID IN AN INTERVIEW IT GOES FAR BEYOND NORMAL TIES BETWEEN A BANK AND A CLIENT MR VON WERSEBE STARTED IN BUSINESS IN CANADA IN THE LATE 1960S MAKING USE OF A TAX LOOPHOLE TO LURE GERMAN INVESTORS TO THE CANADIAN REAL ESTATE MARKET AND THEN COFOUNDED CASTOR WITH MR STOLZENBERG HE BRANCHED INTO EUROPE IN THE EARLY 1980S SETTING UP A YORK HANNOVER HOLDING COMPANY IN SWITZERLAND AT THE TIME ROTHSCHILD BANK GAVE HIM A MODEST CAPITAL INJECTION OF 15 MILLION SWISS FRANCS 105 MILLION IN EXCHANGE FOR A 49 EQUITY STAKE IN THE SWISS HOLDING COMPANY THAT TRANSACTION SET A PRECEDENT REPEATED TIME AND AGAIN OVER THE NEXT DECADE BECAUSE IT WAS FILTERED THROUGH OFFSHORE NOMINEE COMPANIES INCLUDING ONE MR VON WERSEBE SAYS WAS PERSONALLY OWNED BY THE BANK'S THENCHAIRMAN BARON ELIE DE ROTHSCHILD THE BARON DECLINES TO COMMENT THE BANK SOON SOLD ITS STAKE IN YORK HANNOVER TO STEPHAN SCHMIDHEINY A WEALTHY SWISS INDUSTRIALIST WHO IN TURN SOLD IT BACK TO MR VON WERSEBE THE TRANSACTION WAS FINANCED BY ROTHSCHILD BANK VIA AN OFFSHORE COMPANY IN LIBERIA MR VON WERSEBE HIT THE BIG TIME AND THE HEADLINES IN EUROPE IN THE MID1980S BY ACQUIRING A GERMAN INDUSTRIAL COMPANY HARPENER AG FOR 470 MILLION MARKS 2974 MILLION CORPORATE RAIDERS WERE A NOVELTY IN GERMANY VIEWED WITH A MISTRUST THAT MR VON WERSEBE DID NOTHING TO ASSUAGE TO FINANCE THE ACQUISITION HE TRIED TO PERSUADE HARPENER'S BOARD TO ACQUIRE A MUNICH PROPERTY COMPANY HE OWNED THE BOARD REFUSED THE GERMAN PRESS GRIPED AND MR VON WERSEBE RESOLD HARPENER TO A SWISS FINANCIER WERNER REY CURRENTLY A FUGITIVE FROM SWISS JUSTICE IN THE BAHAMAS THAT EPISODE BADLY TARNISHED MR VON WERSEBE'S REPUTATION IN GERMANY WHEN HE TRIED IN 1988 TO ACQUIRE AN OLDLINE HAMBURG TRADING AND SHIPPING COMPANY COUTINHO CARO & CO ALARM BELLS WENT OFF IN GERMAN BANKS BUT ROTHSCHILD BANK DIDN'T BALK IT FINANCED THE TRANSACTION WITH A 58 MILLION MARK 367 MILLION LOAN TO MR VON WERSEBE AND STEPPED IN AGAIN SOON AFTERWARD VIA ANOTHER LIBERIAN COMPANY TO RESCUE A BERMUDA TIMESHARE PROJECT OF MR VON WERSEBE'S THAT HAD MISSED INTEREST PAYMENTS BERMUDA POLICE REPORTEDLY ARE INVESTIGATING ALLEGED FRAUD AT THE PROJECT MR VON WERSEBE'S DOWNFALL WAS IN RALEIGH NC AFTER OPENING A HOTEL AND AN OFFICE COMPLEX THERE HE TRIED HIS LUCK WITH A THIRD PROJECT NAMED TWO HANNOVER SQUARE FORMER OFFICIALS AT HIS US SUBSIDIARIES SAY MR VON WERSEBE DIDN'T HAVE FINANCING WHEN HE STARTED THE 29STORY OFFICE TOWER DESCRIBED BY A SALES BROCHURE AS A MONUMENTAL ACHIEVEMENT IN GERMANY HE BULLIED THE BOARD OF COUTINHO CARO TO TRANSFER 50 MILLION MARKS 316 MILLION TO THE PROJECT ONE FORMER GERMAN EXECUTIVE RECALLS HOW AMERICAN OFFICIALS CAME TO BOARD MEETINGS AND PRESENTED RALEIGH AS THE GREATEST THING SINCE APPLE PIE MR VON WERSEBE HIMSELF WARNED THAT A REFUSAL TO PUT UP FUNDS COULD RUIN THE WHOLE GROUP THE BOARD CAVED IN DESPITE MAJOR RESERVATIONS IN RALEIGH HE STARTED DIVERTING FUNDS TO TWO HANNOVER SQUARE FROM THE OTHER OFFICE COMPLEX HE MANAGED ONE HANNOVER SQUARE DESPITE THE WARNINGS OF HIS OWN INTERNAL ACCOUNTANTS HIS PARTNERS IN THAT PROJECT FILED A TEMPORARY RESTRAINING ORDER AGAINST HIM ON JUNE 2 1992 ALLEGING THAT 500000 HAD BEEN ILLEGALLY DIVERTED MR VON WERSEBE SETTLED OUT OF COURT SAY PEOPLE FAMILIAR WITH THE INCIDENT REIMBURSING HIS PARTNERS AND RELINQUISHING MANAGEMENT OF ONE HANNOVER SQUARE ACCOUNTING WIZARDRY WAS ALSO APPARENTLY USED A 49 STAKE IN TWO HANNOVER SQUARE WAS SOLD TO A COMPANY CALLED OMNIRENT IN FEBRUARY 1989 FOR ALMOST 6 MILLION BUT DOCUMENTS OBTAINED BY THE WALL STREET JOURNAL SUGGEST THAT OMNIRENT WAS A FRONT FOR ANOTHER WERSEBE COMPANY IN GERMANY WHICH ADVANCED THE MONEY AND HAD AN AGREEMENT TO TAKE BACK THE INTEREST IN TWO HANNOVER SQUARE AT ANY TIME THE TRANSACTION THUS ARTIFICIALLY INFLATED THE VALUE OF THE BUILDING AND YORK HANNOVER'S STAKE IN IT MR VON WERSEBE INSISTS OMNIRENT IS A BONA FIDE COMPANY OWNED BY A SWISS AND A CZECH CITIZEN HE DOESN'T KNOW DR WEILAND THE HAMBURG BANKRUPTCY TRUSTEE AND OTHER PEOPLE FAMILIAR WITH YORK HANNOVER'S AFFAIRS SAY SUCH PAPER SHUFFLING WAS WIDESPREAD BUT THE US REAL ESTATE MARKET WAS SHAKY AND THE BANKRUPTCY OF CASTOR THE CANADIAN PROPERTY FINANCE GROUP IN JULY 1992 SPARKED RUMORS IN THE GERMAN PRESS THAT MR VON WERSEBE'S EMPIRE WAS ON ITS LAST LEGS THE FINAL STRAW WAS UPHEAVAL INSIDE THE ZURICH ROTHSCHILD BANK ITSELF SIR EVELYN DE ROTHSCHILD REPLACED HIS FRENCH COUSIN BARON ELIE AS CHAIRMAN AND STARTED TO FIND DISCREPANCIES IN THE BOOKS MR VON WERSEBE'S KEY SOURCE OF FINANCE DRIED UP AT A MEETING IN LONDON WITH SIR EVELYN LAST JULY MR VON WERSEBE GAVE AN IMPASSIONED PITCH SKETCHING A ROSY FUTURE FOR HIS GROUP IF THE BANK WOULD PUT UP FRESH FUNDS FIRST WE MUST DISSECT THE ANIMAL TO SEE WHETHER IT IS HALF ALIVE OR HALF DEAD SIR EVELYN REPLIED ACCORDING TO TWO PEOPLE PRESENT AS THEY DISSECTED THE ROTHSCHILDS AND OTHER BANKS BEGAN TO WORRY THAT THEY HELD ASSETS THAT MAY HAVE BEEN ALREADY PLEDGED TO SOMEONE ELSE AN ATTEMPT WAS MADE TO RESTRUCTURE THE GROUP BUT IT FIZZLED YORK HANNOVER AND ALMOST ALL ITS SUBSIDIARIES FILED FOR BANKRUPTCY 9304300170 930430 WHO'S NEWS FIRST AMERICAN FINANCIAL CORP FIRST AMERICAN FINANCIAL CORP SANTA ANA CALIF PARKER S KENNEDY WAS NAMED PRESIDENT SUCCEEDING HIS FATHER DP KENNEDY 74 YEARS OLD WHO REMAINS CHAIRMAN THE YOUNGER MR KENNEDY 45 WAS EXECUTIVE VICE PRESIDENT SEPARATELY THE TITLE INSURANCE COMPANY INCREASED ITS QUARTERLY DIVIDEND TO 125 CENTS A SHARE FROM 1125 CENTS PAYABLE JULY 15 TO STOCK OF RECORD JUNE 25 9304300169 930430 WHO'S NEWS BOWATER INC BOWATER INC DARIEN CONN ROBERT D LEAHY 41 YEARS OLD WAS NAMED VICE PRESIDENT CORPORATE RELATIONS FOR THIS PAPER AND PULP COMPANY MR LEAHY PREVIOUSLY WAS DIRECTOR OF MEDIA COMMUNICATIONS FOR INTERNATIONAL PAPER CO IN PURCHASE NY HE SUCCEEDS ARTHUR KING 65 WHO IS RETIRING 9304300168 930430 INTERNATIONAL SPAIN'S ARGENTARIA REPORTS 14 INCREASE IN FIRSTQUARTER NET SPECIAL TO THE WALL STREET JOURNAL MADRID SPAIN'S STATE BANKING GROUP ARGENTARIA CORP BANCARIA DE ESPANA SAID CONSOLIDATED NET INCOME ROSE 14 TO 2125 BILLION PESETAS 1837 MILLION IN THE FIRST QUARTER FROM 1863 BILLION PESETAS A YEAR EARLIER FIRSTQUARTER INTEREST INCOME ROSE 91 TO 26408 BILLION PESETAS FROM 24212 BILLION PESETAS A YEAR EARLIER INTEREST EXPENSES MEANWHILE GREW 10 TO 20387 BILLION PESETAS FROM 18495 BILLION TOTAL PROVISIONS JUMPED 22 TO 2238 BILLION PESETAS IN THE FIRST QUARTER FROM 1828 BILLION PESETAS IN 1992 PROVISIONS FOR DOUBTFUL AND NONPERFORMING LOANS ACCOUNTED FOR 1996 BILLION PESETAS OR 89 OF THE TOTAL THE BANKING GROUP SAID ARGENTARIA IS IN THE PROCESS OF FLOATING AS MANY AS 3136 MILLION SHARES OR 25 OF THE GROUP ON INTERNATIONAL MARKETS THE GLOBAL PLACEMENT WILL RAISE AS MUCH AS 11917 BILLION PESETAS THE BANK WILL OFFER THE BULK OF SHARES IN SPAIN THE US AND EUROPE WITH ABOUT ONE MILLION SHARES FLOATED ON OTHER INTERNATIONAL EXCHANGES THE SHARES ARE PRICED AT 3800 PESETAS 3285 EACH AND WILL BEGIN TRADING IN SPAIN NEW YORK AND LONDON AS OF MAY 12 9304300167 930430 WHAT'S NEWS BUSINESS AND FINANCE ECONOMIC GROWTH SLOWED TO AN ANNUAL RATE OF 18 IN THE FIRST QUARTER FROM A 47 RATE IN THE FOURTH QUARTER SIGNALING THAT THE RECOVERY REMAINS DISTURBINGLY TENUOUS BOND PRICES RALLIED IN THE WAKE OF THE REPORT LIFTING STOCKS THE DOW JONES INDUSTRIALS CLIMBED 1162 POINTS TO 342512 GENERAL MOTORS EARNED 513 MILLION IN THE FIRST QUARTER AFTER A YEAREARLIER LOSS THE CAR MAKER SHARPLY NARROWED ITS LOSSES ON NORTH AMERICAN AUTO OPERATIONS BUT THEY STILL ERASED OVERSEAS VEHICLE EARNINGS GM STOCK SANK 1375 OR 32 TO 41 GM SAID IT WILL REJECT A GOVERNMENT REQUEST THAT IT RECALL 47 MILLION PICKUP TRUCKS AND WILL INSTEAD ATTACK THE METHODS USED BY FEDERAL REGULATORS KODAK CHAIRMAN KAY WHITMORE DEFENDED HIS ABILITY TO DELIVER A CREDIBLE FINANCIAL PLAN BY SEPTEMBER DESPITE THE SUDDEN DEPARTURE OF THE COMPANY'S CHIEF FINANCIAL OFFICER THE PLAN WOULD INCLUDE DEBT CUTS AND THE SALE OF A MAJOR ASSET WHITMORE SAID ECONOMIC OFFICIALS FROM THE G7 INDUSTRIALIZED NATIONS SAID THEY SEE ROOM FOR LOWER INTEREST RATES IN EUROPE AND HAILED JAPAN'S EFFORT TO BOOST ITS ECONOMY THE OFFICIALS SAID NOTHING SPECIFIC ABOUT THE YEN'S RECENT RISE CLINTON'S HEALTH ADVISERS ARE LOOKING CLOSELY AT FINANCING MEDICAL COVERAGE FOR ALL AMERICANS WITH A PAYROLL TAX INSTEAD OF REQUIRING EMPLOYERS TO BUY INSURANCE FOR THEIR WORKERS THE MONEY WOULD GO DIRECTLY TO REGIONAL HEALTH COOPERATIVES TO BUY INSURANCE LLOYD'S OF LONDON PROPOSED ALLOWING CORPORATE INVESTORS FOR THE FIRST TIME INTO THE 306YEAROLD INSURANCE MARKET THE STEP IS AN EFFORT TO SAVE LLOYD'S FROM RUIN AMID STEEP LOSSES STOCK MUTUAL FUNDS TOOK IN A RECORD 113 BILLION FROM INVESTORS LAST MONTH AND FUND OFFICIALS SAY SALES SHOWED NO SIGNS OF SLACKENING IN APRIL THE US INTENDS TO TAKE A TOUGHER STAND AGAINST FOREIGN INTELLIGENCE AGENCIES THAT SPY ON US COMPANIES THE NEW COMPTROLLER OF THE CURRENCY TOLD BANK EXAMINERS TO EASE OVERLY RESTRICTIVE REGULATION IN AN EFFORT TO SPUR MORE BANK LENDING A HOUSE PANEL SLICED 12 BILLION FROM THE ADMINISTRATION'S REQUEST FOR 42 BILLION TO FINISH THE S&L CLEANUP PEPSICO'S COLORLESS COLA CRYSTAL PEPSI HAS LOST MARKET SHARE AFTER A STRONG DEBUT IN DECEMBER APPARENTLY DUE TO DISAPPOINTMENT WITH ITS TASTE UAL POSTED A NARROWED FIRSTQUARTER LOSS BUT EXCLUDING CHARGES THE LOSS WIDENED THE UNITED AIR PARENT OUTLINED PLANS TO FURTHER CUT CAPACITY MERRILL LYNCH RAISED ITS QUARTERLY DIVIDEND 17 CITING THE BROKERAGE FIRM'S RECORD FIRSTQUARTER EARNINGS LABOR SECRETARY ROBERT REICH ENDORSED THE NORTH AMERICAN FREE TRADE AGREEMENT UNEQUIVOCALLY AND URGED WORKERS TO SUPPORT THE PACT HIS STANCE IS LIKELY TO DISAPPOINT UNIONS MANY OF WHICH OPPOSE THE ACCORD PAINEWEBBER'S ASSET MANAGEMENT UNIT SUED THREE FORMER OFFICIALS ACCUSING THEM OF ATTEMPTING TO STEAL CLIENTS AND EMPLOYEES FROM THE FIRM A KLEINWORT BENSON UNIT WHERE THE OFFICIALS NOW WORK DENIED THE ALLEGATION BONDS LEHMAN BROTHERS TREASURY INDEX 507636 UP 2003 COMMODITIES OIL 2058 A BARREL UP 39 CENTS DOW JONES FUTURES INDEX 12478 UP 065 SPOT INDEX 12092 OFF 077 DOLLAR 11100 YEN OFF 115 15790 MARKS OFF 00020 9304300164 930430 WHO'S NEWS EQUITABLE OF IOWA COS EQUITABLE OF IOWA COS DES MOINES IOWA FRED S HUBBELL 42YEAROLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS INSURANCE HOLDING COMPANY WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN SUCCEEDING HIS FATHER JAMES W HUBBELL JR 70 WHO RETIRED ALSO RICHARD S WHITE GENERAL MANAGER OF THE JOHN DEERE DES MOINES WORKS OF DEERE & CO WAS NAMED A DIRECTOR FILLING A VACANCY 9304300163 930430 WHO'S NEWS SMITHKLINE BEECHAM PLC SMITHKLINE BEECHAM PLC LONDON THIS BRITISHAMERICAN PHARMACEUTICAL COMPANY SAID PAUL A ALLAIRE AND JOHN A YOUNG WERE ELECTED TO THE BOARD MR ALLAIRE 54 YEARS OLD IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF XEROX CORP AND MR YOUNG 60 RETIRED LAST YEAR AS PRESIDENT AND CHIEF EXECUTIVE OF HEWLETTPACKARD CO ALSO RALPH A PFEIFFER JR 65 RETIRED FROM THE BOARD WHICH NOW HAS 16 MEMBERS 9304300162 930430 MEDIA ON NASATV THE STARS ARE JUST EXTRAS BY GREGORY N RACZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SPACE JUNKIES NOW HAVE SOMETHING TO WATCH WHEN STAR TREK'S CAPT KIRK AND MR SPOCK AREN'T ON NASATV A CABLETELEVISION VENTURE BY THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION HAS TAKEN OFF AMONG SPACE BUFFS NATIONWIDE ITS OFFICIAL CODE NAME IS NASA SELECT BUT A GROWING FAN CLUB CONSIDERS IT CNN FOR TREKKIES THE NASA CHANNEL SHOWS EVERYTHING FROM ROUTINE NEWS BRIEFINGS ON SPACE ISSUES TO THE CURRENT COLUMBIA SPACE MISSION ON WHICH FIVE US AND TWO GERMAN ASTRONAUTS ARE CONDUCTING MICROGRAVITY EXPERIMENTS 122 NAUTICAL MILES ABOVE THE EARTH NASATV WILL BEAM 24HOUR COVERAGE UNTIL COLUMBIA'S SCHEDULED TOUCHDOWN NEXT WEDNESDAY LAUNCHED AS AN INHOUSE SERVICE IN 1981 TO LINK NASA EMPLOYEES SCATTERED ACROSS THE COUNTRY NASATV NOW AIRS AS A PUBLIC SERVICE ON LOCAL CABLETV SYSTEMS MONDAY THROUGH FRIDAY FROM NOON UNTIL 4 AM FOR SPACE INSOMNIACS AND THERE ARE NO PLANS TO SELL ADS A 15MINUTE UPDATE ON SPACEAGENCY NEWS NASA TODAY IS RERUN THROUGH THE DAY SOMETHING LIKE CNN'S HEADLINE NEWS THERE ARE ALSO SPECIALS SUCH AS ADVENTURES IN RESEARCH THE POETRY OF POLYMERS BUT NASATV CUTS OFF ITS REGULAR PROGRAMMING TO COVER ALL SHUTTLE MISSIONS FROM LIFTOFF TO LANDING PARTS OF THE SHUTTLE COVERAGE ARE ABOUT AS RIVETING AS A TEST PATTERN SOME VIEWERS COMPLAIN THAT NASATV SOMETIMES WILL SHOW THE ENGINEERS AND OFFICIALS SITTING BEHIND BANKS OF PANELS AT THE HOUSTON SPACE CENTER'S MISSION CONTROL FROM THE SAME CAMERA ANGLE FOR DAYS REGULAR VIEWERS GET TO WATCH PLANTS WILTING AND PEOPLE PICKING THEIR NOSES SAYS RAY MILLER A SPACE FAN IN OAKLAND CALIF THE SHOW'S PRODUCERS RESPOND THAT THEIR TOP PRIORITY IS TO SHOW NASA OPERATIONS AND NOT NECESSARILY TO ENTERTAIN BUT WHAT REALLY EXCITES SUCH VIEWERS AS GREG COSIMINI OF ST PAUL MINN ARE THE SPECTACULAR VISTAS BEAMED DOWN FROM SPACE HURRICANES LIGHTNING STORMS METEORS AURORA VOLCANOES FIRES IN KUWAIT AND SOME OF THE MOST FASCINATING CITY LIGHTS I HAVE EVER SEEN HE WROTE NASATV HIS LETTER URGES BILL HART THE SERVICE'S DIRECTOR TO REMEMBER THAT THERE'S NOTHING WRONG WITH BEING ENTERTAINING AS WELL AS EDUCATIONAL TO MOST SPACE FANS THE NASA CHANNEL HAS PLENTY OF THE RIGHT STUFF KARL BUELTERMAN OF CINCINNATI SAYS HE PLEADED WITH HIS LOCAL CABLE COMPANY TO ADD THE CHANNEL TO ITS LINEUP THE COMPANY BALKED SO HE CANCELED HIS SUBSCRIPTION AND PURCHASED A SATELLITE DISH TO TUNE IN TO NASATV I WATCH IT CONSTANTLY HE SAYS AND DURING A SHUTTLE MISSION NO ONE CAN TEAR ME AWAY FROM MY TV FRUSTRATED SPACE BUFFS GO INTO ORBIT WHEN THE MAJOR NETWORKS SHOW ONLY 10SECOND CLIPS OF A SHUTTLE LAUNCH OR LANDING WITH PERHAPS A BRIEF GLIMPSE AT THE CREW INSIDE CNN JUST DOESN'T TELL THE WHOLE STORY SAYS BRIAN GREER A STUDENT AT GEORGIA SOUTHERN UNIVERSITY ON NASATV FANS BECOME PARTNERS IN THE ADVENTURE THE EXPLORATION SAYS BOB BIALECKI A VIEWER IN MILWAUKEE JUST BEFORE LAST MONTH'S PLANNED LIFTOFF OF COLUMBIA MEMBERS OF THE NONPROFIT NATIONAL SPACE SOCIETY HUDDLED AROUND THE TV AT THEIR WASHINGTON HEADQUARTERS AS IF AT A SUPER BOWL PARTY AS THE SEVEN ASTRONAUTS ARRIVED AT THE ANTEROOM BEFORE ENTERING THE SHUTTLE NASATV SHOWED EVERYTHING THAT MISSION CONTROL SAW VIEWERS WATCHED THE ASTRONAUTS CLIMB ABOARD COLUMBIA TENSION SET IN WHEN THE SOCALLED WHITE TEAM MADE LASTMINUTE CHECKS OF THE SHUTTLE THEN DROVE AWAY FROM THE LAUNCH SITE TO SAFETY THE SHUTTLE CREW INSIDE STOOD ALONE LIKE A SKYSCRAPER IN THE DESERT IT MUST BE AN EERIE FEELING SAID DAVID BRYANT OF THE SPACE SOCIETY WHEN YOU KNOW EVERYONE'S LEAVING AND GOING THREE MILES AWAY WITH THE WHITE TEAM OUT OF THE PICTURE MISSION CONTROL TOOK THE HANDOFF THE COUNTDOWN BEGAN THE SPACESOCIETY MEMBERS WHO HAVE TRACKED DOZENS OF LAUNCHES THROUGH NASATV BEGAN TO DISCUSS THE RELATIVE MERITS OF THE COMMENTATORS FOR THE LAUNCH MITCH VARNES THE YOUNG BLOOD VS GEORGE DILLER THE EMINENCE GRISE VS LISA MALONE WHOSE VOICE CNN SEEMS TO CARRY THE MOST WHEN THE NASATV CLOCK AT THE BOTTOM OF THE TV SCREEN HIT 90 SECONDS LASTMINUTE VIEWERS SPRINTED INTO THE ROOM BUT MR VARNES WHO WAS ANNOUNCING THE COUNTDOWN NEVER REACHED ZERO WITH THREE SECONDS TO GO THE SHUTTLE COMPUTER NOTICED A GLITCH AND SHUT DOWN MISSION NO 55 WAS ABORTED NASATV CUT AWAY FROM THE SHUTTLE WHICH WAS INSTANTLY SOAKED WITH 300000 GALLONS OF WATER SUDDENLY SPOUTING FROM A PREVIOUSLY INCONSPICUOUS STORAGE TANK AND PANNED BACK TO BOB SIECK THE 53YEAROLD LAUNCH DIRECTOR MR SIECK STOOD ARMS FOLDED AS EXPRESSIONLESS AS A BLOCK OF STONE WHAT NERVES OF STEEL SAID LORI GARVER THE SPACE SOCIETY'S EXECUTIVE DIRECTOR AFTER FINDING OUT WHAT WENT WRONG ONE OF THE THREE ENGINES DIDN'T IGNITE THE SPACE VIEWERS BEGAN PLANNING FOR THIS MONTH'S COLUMBIA LIFTOFF DESPITE SUCH DISAPPOINTMENTS SPACE ENTHUSIASTS LOVE THE LAUNCHES IT'S THE CLOSEST I'LL PERSONALLY GET TO BEING IN SPACE SAYS CYNTHIA GRIFFIN OF HOUSTON IN HER YOUTH MS GRIFFIN WAS SO INSPIRED BY THE MERCURY MISSIONS SHE SAW ON TV THAT SHE PLACED LADYBUGS IN MATCHBOX CAPSULES TETHERED THE CAPSULES WITH STRING TO A BALLOON AND LAUNCHED HER OWN TINY TEST PILOTS FROM HER BACK YARD NOW SHE USES NASATV TO BETTER INFORM HER PROSPACE GROUP FREEDOM FIGHTERS WHICH LOBBIES TO BOOST FUNDING FOR THE SPACE STATION FREEDOM ALTHOUGH A TOOTHPICKSIZE ANNUAL BUDGET OF 13 MILLION LIMITS ITS CREATIVE OFFERINGS THE CHANNEL PUTS FORTH A PROGRAM AT 2 PM FOR CLASSROOM VIEWING CONSTANCE CARROLL USES IT FOR HER FIFTHLASS IN PHOENIX IT MAKES HER DAY SHE SAYS WHEN AN EXCITED 11YEAROLD COMES UP TO HER AND ASKS WHAT HAPPENED TO THE BEES ON THE LAST MISSION MRS C' BUT SHE ALSO LIKES GATHERING HER FIFTHGRADE CREW IN FRONT OF THE TUBE TO WATCH FOR MORE DOWNTOEARTH LESSONS IN HUMAN RELATIONS FOR INSTANCE ASTRONAUTS SPEND A YEAR BEFORE A MISSION LEARNING TO GET ALONG SHE SAYS AND BOY IF THAT DOESN'T HIT THE CLASSROOM THERE ARE SOME COMPLAINTS FANS WANT A TV GUIDE FOR THE CHANNEL AND MORE ORIGINAL PROGRAMMING BUDGET CONSTRAINTS BE DAMNED THOUGH THE CHANNEL BECAME AVAILABLE TO CABLETV SYSTEMS IN THE LATE 1980S THE SKYROCKETING DEMAND OF RECENT YEARS IS FORCING EXPANSION THIS MONTH NASATV JETTED FROM GODDARD SPACE CENTER IN MARYLAND TO A NEW 29 MILLION MULTIMEDIA FACILITY IN NASA'S WASHINGTON HEADQUARTERS THE NEW NASA TODAY SET IS MODELED AFTER A TRADITIONAL TV STUDIO EXCEPT THAT THE NEWS ANCHORS SIT IN FRONT OF US AND NASA FLAGS NASA ENGINEERS CAN GET FANCY TOO A WHITEBACKGROUND CYCLORAMA WILL ALLOW STARS AND PICTURES OF THE MILKY WAY TO FLASH BEHIND SCIENTISTS DURING INTERVIEWS 9304300161 930430 GM TO REJECT RECALL OF PICKUP TRUCKS AND FOCUS INSTEAD ON REGULATORS' TESTS BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP'S TOP LAWYER SAID THE AUTO MAKER WILL REJECT A GOVERNMENT REQUEST THAT IT RECALL 47 MILLION PICKUP TRUCKS AND WILL ATTACK THE METHODS AND CONCLUSIONS OF FEDERAL SAFETY REGULATORS INSTEAD HARRY J PEARCE GM'S GENERAL COUNSEL AND EXECUTIVE VICE PRESIDENT SAID THAT SOME OF THE TESTS USED BY THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION TO JUSTIFY ITS RECALL REQUEST SHOW THAT GM PICKUPS PERFORMED EXTRAORDINARILY WELL AND THAT NHTSA IS RETROACTIVELY MODIFYING REGULATIONS BY RECOMMENDING GM RECALL A TRUCK THAT FAR EXCEEDS GOVERNMENT SAFETY STANDARDS WHAT'S MORE MR PEARCE SAID NHTSA HAS IGNORED STATE DATA WHICH SHOW THAT ITS TRUCKS ARE AS SAFE AS OR SAFER THAN THE COMPETITION'S AT THE HEART OF THE LATEST ROUND IN A DISPUTE OVER THE SAFETY OF GM PICKUPS ARE FOUR TESTS FEDERAL REGULATORS PERFORMED IN THE TESTS FOUR 1991 CHEVROLET CAPRICES AMONG THE HEAVIEST PASSENGER CARS ON THE ROAD WERE CRASHED INTO THE SIDES OF THREE GM PICKUPS AND A FORD TRUCK AT 50 MILES PER HOUR THE TESTS SHOWED THAT THE FORD GAS TANK DIDN'T LEAK BUT EACH OF THE GM TRUCKS WHICH HAVE GAS TANKS MOUNTED OUTSIDE THE HEAVY STEELFRAME RAILS LEAKED BETWEEN 10 AND 125 GALLONS MR PEARCE ARGUED THAT THE 50MILEPERHOUR TEST OCCURRED ONLY BECAUSE THE GOVERNMENT WAS SEEKING A MORERIGOROUS TEST TO SHOW GM'S TRUCKS IN THE WORST LIGHT THE TEST WAS WELL IN EXCESS OF THE GOVERNMENT'S OWN 20MILEPERHOUR STANDARD HE SAID AS PART OF THE TESTING THREE GM PICKUPS WERE HIT AT 45 MILES PER HOUR AND DIDN'T LEAK MR PEARCE SAID THERE WAS NO NEED FOR ADDITIONAL TESTING BECAUSE THOSE TESTS SHOW THAT GM PICKUPS CLEARLY SURPASS THE GOVERNMENT'S 20MILEPERHOUR STANDARD WHAT OTHER QUESTION COULD THERE BE IF WE FULLY MEET THE STANDARD THAT IS DIRECTLY APPLICABLE MR PEARCE ASKED THE CENTER FOR AUTO SAFETY WHICH PETITIONED THE GOVERNMENT LAST SUMMER TO RECALL THE TRUCKS SAID THE HIGHERSPEED TESTS SHOW THAT THE TRUCKS FAIL IN REALWORLD VEHICLETOVEHICLE TESTS TWO OF 11 GM TRUCKS FAILED WHEN THE AGENCY SIMULATED AN ACCIDENT IN WHICH THE TRUCKS SLIDE INTO A POLE AT PRECISELY THE TRUCKS' WEAKEST POINT MR PEARCE SAID THOSE TESTS WERE SET UP TO FAIL A SIDEMOUNTED TANK HE SAID IN ALL FIVE GM PICKUPS CLEARLY PASSED THE TESTS FIVE FAILED AND ONE PRODUCED AN AMBIGUOUS RESULT MR PEARCE ALSO SAID THE GOVERNMENT IGNORED VOLUMINOUS ACCIDENT RECORDS WHICH SHOW THE TRUCKS ARE SAFE STATE ACCIDENT DATA SHOW THAT GM AND FORD TRUCKS ARE EQUALLY LIKELY TO EXPERIENCE POSTCOLLISION FIRES AND THAT IN SOME CASES GM TRUCKS ARE SAFER THAN FORD AND DODGE TRUCKS FOR EXAMPLE MR PEARCE SAYS THAT AN ANALYSIS OF AVAILABLE DATA IN SIX STATES SHOW THAT THE GM TRUCKS WERE INVOLVED IN 193 FATALITIES OR MAJOR INJURIES FOR EVERY 1000 COLLISIONS WHILE THE FORD RATE WAS 214 AND THE DODGE RATE WAS 232 FEDERAL REGULATORS SAY THAT AN EXAMINATION OF FEDERAL FATAL ACCIDENT RECORDS SHOWS THAT GM TRUCKS ARE 24 TIMES AS LIKELY AS FORD TRUCKS TO BE INVOLVED IN FATAL SIDEIMPACTS ACCOMPANIED BY FIRE NHTSA SAYS IT EXAMINED ONLY FATAL REPORTS BECAUSE THE ALLEGED DEFECT IN GM TRUCKS SHOWS UP ONLY IN SERIOUS ACCIDENTS BUT MR PEARCE COUNTERS THAT THE STATE DATA ARE MORE COMPREHENSIVE NHTSA SAID IT WOULD WITHHOLD COMMENT ON GM'S ARGUMENTS UNTIL AFTER IT RECEIVES THEM IN WRITING TODAY WHEN GM IS EXPECTED TO REFUSE TO RECALL THE TRUCKS MR PEARCE SAID THE AGENCY IS HAMPERED BECAUSE THE CLINTON ADMINISTRATION HASN'T YET APPOINTED AN ADMINISTRATOR TO HEAD THE AGENCY LEAVING IT LEADERLESS AS IT ATTEMPTS A RECALL THAT RAISES COMPLEX LEGAL QUESTIONS WE HAVE A BIT OF A VACUUM MR PEARCE SAID THERE IS NO ADMINISTRATOR TO MAKE THESE POLICY JUDGMENTS MR PEARCE ALSO DISMISSED THE ARGUMENT THAT GM WOULD DO WELL TO PUT THE CONTROVERSY BEHIND IT BY VOLUNTARILY RECALLING THE TRUCKS A RECALL MIGHT COST 2 BILLION AND WOULD DIVERT LIMITED CAPITAL TO A NONEXISTENT PROBLEM WHEN THE FUNDS WOULD BE BETTER SPENT IMPROVING THE SAFETY OF A FUTURE PRODUCT MR PEARCE SAID IF WE HAVE TO SPEND HUGE AMOUNTS OF MONEY BECAUSE OF A PERCEIVED PROBLEM RATHER THAN A REAL PROBLEM THAT REPRESENTS A SERIOUS PROBLEM FOR THE INDUSTRY MR PEARCE SAID 9304300160 930430 INTERNATIONAL AUSTRIAN AIRLINES HAS TALKS WITH 3 CARRIERS NOT IN PLANNED LINKUP VIENNA AUSTRIAN AIRLINES OFFICIALS DISCLOSED THEY ARE IN SEPARATE TALKS WITH LUFTHANSA GERMAN AIRLINES AIR FRANCE AND ALL NIPPON AIRWAYS TO EXPLORE ALTERNATIVES TO A PLANNED MERGER WITH THREE OTHER AIRLINES AUSTRIAN AIRLINES IS ALREADY IN MERGER TALKS WITH SWISSAIR KLM ROYAL DUTCH AIRLINES AND SCANDINAVIAN AIRLINES SYSTEM FOLLOWING TWO MONTHS OF INTENSE STUDY THE FOUR AIRLINES ANNOUNCED THIS WEEK THEY HOPE TO CREATE A HOLDING COMPANY WITH A SINGLE BALANCE SHEET A SINGLE HEADQUARTERS AND A SINGLE PRODUCT BUT AFTER A MEETING OF THE AUSTRIAN AIRLINES SUPERVISORY BOARD COMPANY PRESIDENT OTTO BINDER SAID HIS CARRIER WILL ALSO EXPLORE OTHER POSSIBLE LINKUPS THE MOVE APPEARS TO BE MOTIVATED BY POLITICAL CONCERNS AUSTRIAN UNIONS FEARFUL OF LOSING JOBS HAVE CRITICIZED THE PLANNED FOURWAY MERGER AND THE GOVERNMENT WHICH OWNS 51 OF THE AIRLINE IS CERTAIN TO SCRUTINIZE ANY DEAL CHECKING ALTERNATIVES IS NECESSARY SINCE THE GOVERNMENT WOULD COME UNDER ATTACK IF WE HAVEN'T CHECKED ALL THE POSSIBILITIES MR BINDER SAID EVEN AS HE ANNOUNCED THE NEW TALKS MR BINDER RUSHED TO PRAISE THE FOURWAY MERGER AS VERY POSITIVE HE DIDN'T REVEAL ANY DETAILS OF HIS AIRLINE'S TALKS WITH LUFTHANSA AIR FRANCE AND ALL NIPPON OF JAPAN THE AUSTRIAN AIRLINE SAID IT RETAINED MANAGEMENT CONSULTANTS MCKINSEY & CO TO REVIEW ITS MERGER STUDIES 9304300159 930430 TEXAS DEVELOPER GETS TWOYEAR SENTENCE FINE IN HUD SCANDAL WASHINGTON TEXAS DEVELOPER LEONARD BRISCOE WAS SENTENCED TO TWO YEARS IN PRISON AND A 50000 FINE IN CONNECTION WITH THE INFLUENCEPEDDLING SCANDAL IN THE REAGAN ADMINISTRATION'S HOUSING DEPARTMENT MR BRISCOE WAS SENTENCED BY US DISTRICT JUDGE STANLEY HARRIS HE WAS FOUND GUILTY IN JANUARY OF PROVIDING ILLEGAL GRATUITIES TO A FORMER HIGHRANKING OFFICIAL AT THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT DUBOIS GILLIAM THE HUD OFFICIAL PROVIDED FEDERAL SUBSIDIES TO PROJECTS IN WHICH MR BRISCOE HAD AN INTEREST MR BRISCOE'S CODEFENDANTS LANCE WILSON WHO WAS EXECUTIVE ASSISTANT TO FORMER HUD SECRETARY SAMUEL PIERCE AND OMAHA LAWYER MAURICE DAVID STEIER ALSO WERE SENTENCED RECENTLY FOR THEIR ROLES IN GIVING OR OFFERING GRATUITIES TO MR GILLIAM ALL THREE DEFENDANTS WERE ACQUITTED OF OTHER RELATED CHARGES INCLUDING MORE SERIOUS ONES ALLEGING BRIBERY AND CONSPIRACY MR GILLIAM PLEADED GUILTY IN 1989 TO CORRUPTION CHARGES REGARDING HUD CONTRACTS 9304300158 930430 CORRECTIONS & AMPLIFICATIONS AT THE COOPERS & LYBRAND ACCOUNTING FIRM TWO OF THE 12 VICE CHAIRMEN ARE WOMEN AN ARTICLE ON WEDNESDAY'S MARKETPLACE PAGE INCORRECTLY SAID ONLY ONE WAS A WOMAN 9304300157 930430 US TO TOUGHEN STAND ON SPYING AGAINST FIRMS SOME CASES MAY BE HANDLED THROUGH POLICE ACTION INSTEAD OF DIPLOMACY BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US GOVERNMENT WILL TAKE A TOUGHER STAND AGAINST FOREIGN INTELLIGENCE AGENCIES THAT SPY ON US COMPANIES A SENIOR US INTELLIGENCE OFFICIAL SUMMED UP THE CHANGE BY SAYING NO MORE MR NICE GUY HE ASKED THAT HE AND HIS AGENCY NOT BE IDENTIFIED IN THE PAST WHEN THE US HAS DETECTED CASES OF EUROPEAN ALLIES' SPYING ON US COMPANIES THE CASES WERE USUALLY DEALT WITH BY SENDING DEMARCHES A MILD FORM OF DIPLOMATIC PROTEST TO THE GOVERNMENTS INVOLVED THOUGH THE GOVERNMENT WOULDN'T ELABORATE ONE OPTION BEING CONSIDERED IS TO TURN SOME CASES OVER TO LAW ENFORCEMENT AGENCIES FOR EXAMPLE SOCALLED BLACK BAG JOBS THE PHOTOGRAPHING OF COMPANY FILES COULD RESULT IN BURGLARY CHARGES EVEN THOUGH NOTHING IS REMOVED THE TOUGHER APPROACH WAS ANNOUNCED AFTER REPORTS THAT THE FRENCH GOVERNMENT WAS PREPARING AN ESPIONAGE EFFORT AGAINST 49 US AEROSPACE AND DEFENSE COMPANIES ONE COMPANY ALLEGED TO BE A TARGET GENERAL MOTORS CORP'S HUGHES AIRCRAFT CO SAID IT SUSPENDED PLANS TO APPEAR AT THE PARIS AIR SHOW IN JUNE BECAUSE IT HAD BEEN TOLD BY THE CENTRAL INTELLIGENCE AGENCY OF THE FRENCH SPYING PROGRAM SO FAR THE FRENCH GOVERNMENT HAS WITHHELD COMMENT ON THE CHARGE IN THE PAST US OFFICIALS HAVE COMPLAINED THAT THE FORMER SOVIET UNION FRANCE AND JAPAN HAVE SPIED ON US COMPANIES RUSSIA'S REFORMED KGB AND OTHER INTELLIGENCE AGENCIES ARE BELIEVED TO HAVE RENEWED THEIR HUNT FOR US TECHNOLOGY AND OTHER EUROPEAN COUNTRIES ARE BELIEVED TO HAVE BEEN INVOLVED IN SUCH SPYING FROM TIME TO TIME PAST POLICY HAS BEEN TO REJECT EFFORTS TO GET US INTELLIGENCE AGENCIES TO SPY ON FOREIGN CORPORATIONS ON BEHALF OF US COMPANIES ONE REASON GIVEN IS THAT THE INCREASINGLY GLOBAL NATURE OF US COMPANIES AND THEIR FREQUENT INVOLVEMENT IN JOINT VENTURES WITH FOREIGN CORPORATIONS MAKE SUCH EFFORTS QUESTIONABLE ON BOTH LEGAL AND POLITICAL GROUNDS HOWEVER THE CIA HAS AGREED TO CARRY OUT A COUNTERINTELLIGENCE ROLE FOR EXAMPLE IT HAS BEEN KNOWN TO INFORM US COMPANIES SUCH AS IN THE CASE OF HUGHES WHEN IT LEARNS THAT THEY ARE TARGETS OF FOREIGN ESPIONAGE EFFORTS 9304300156 930430 AUSTRALIAN NETWORKS JOIN NEWS CORP BID FOR PAYTV LICENSE SPECIAL TO THE WALL STREET JOURNAL SYDNEY TWO MORE TELEVISION NETWORKS HAVE JOINED NEWS CORP AND NINE NETWORK AUSTRALIA LTD IN A CONSORTIUM BIDDING FOR ONE OF TWO AUSTRALIAN PAY TELEVISION LICENSES APPLICATIONS FOR THE LICENSES CLOSED WEDNESDAY NEWS CORP RUPERT MURDOCH'S INTERNATIONAL MEDIA COMPANY BILLIONAIRE BUSINESSMAN KERRY PACKER'S NINE NETWORK AUSTRALIA LTD AND AUSTRALIAN & OVERSEAS TELECOMMUNICATIONS CORP SAID FRIDAY THAT THEY WOULD BID FOR A LICENSE ON WEDNESDAY THE COMPANIES SAID THAT AUSTRALIA'S OTHER TWO COMMERCIAL TELEVISION NETWORKS SEVEN AND 10 HAVE JOINED THE CONSORTIUM NETWORK 10 IS CONTROLLED BY CANWEST GLOBAL COMMUNICATIONS CORP OF CANADA WHICH HAS 15 THE SEVEN NETWORK IS OWNED BY TELEVISION HOLDINGS LTD WHICH IS 30OWNED BY BANKS THAT TOOK EQUITY IN EXCHANGE FOR DEBT THE GOVERNMENT WILL ISSUE TWO PAYTV LICENSES WITH SUCCESSFUL BIDDERS ALLOWED TO PROVIDE AS MANY AS FOUR CHANNELS FOREIGN OWNERSHIP IS LIMITED TO 35 OF A PAYTV OPERATOR WITH A 20 LIMIT FOR ANY ONE FOREIGN COMPANY THE PAYTV SERVICES WILL BE DISTRIBUTED BY SATELLITE AND USE A NEW DIGITAL COMPRESSION TECHNOLOGY A THIRD LICENSE FOR TWO CHANNELS WILL BE ISSUED TO AUSTRALIAN BROADCASTING CORP A STATEOWNED NATIONAL TELEVISION AND RADIO BROADCASTER THE NEWSTELECOMNETWORKS CONSORTIUM IS THE ONLY BIDDER TO ANNOUNCE ITS INTENTIONS LOCAL PRESS REPORTS HAVE NAMED TIME WARNER INC OF THE US AS A LIKELY PARTICIPANT IN A CONSORTIUM AUSTRALIAN PROVINCIAL NEWSPAPERS LTD A COMPANY CONTROLLED BY TONY O'REILLY WHO HAS BUSINESS INTERESTS IN THE US AND IRELAND IS ALSO BEING DISCUSSED AS A BIDDER NEWS CORP OWNS SATELLITE TV OPERATIONS IN BRITAIN AND TV AND MOVIE OPERATIONS IN THE US TELECOM IS A STATEOWNED TELECOMMUNICATIONS CONCERN 9304300155 930430 BB&T FINANCIAL TO BUY INSURER WILSON NC BB&T FINANCIAL CORP A BANK HOLDING COMPANY SAID IT SIGNED A DEFINITIVE PACT TO BUY WILKINSON BULLUCK & CO A PRIVATELY HELD INSURANCE AGENCY IN ROCKY MOUNT NC BB&T PLANS TO ISSUE COMMON SHARES FOR THE PURCHASE BUT DIDN'T SPECIFY OTHER TERMS THE ACQUISITION IS EXPECTED TO CLOSE BY THE END OF JUNE 9304300154 930430 WHO'S NEWS BRITISH GAS CHAIRMAN PLANS TO STEP DOWN AT END OF JUNE 1994 LONDON BRITISH GAS PLC CHAIRMAN ROBERT EVANS ANNOUNCED AT THE UTILITY'S ANNUAL MEETING THAT HE WILL RETIRE WHEN HIS TERM OF OFFICE EXPIRES AT THE END OF JUNE 1994 MR EVANS SAID THE UTILITY WHICH IS THREATENED WITH BREAKUP BY UK COMPETITION AUTHORITIES WILL SEEK TO APPOINT A SUCCESSOR BEFORE THAT TIME MR EVANS HAS DIVIDED EXECUTIVE RESPONSIBILITIES WITH CHIEF EXECUTIVE OFFICER CEDRIC BROWN SINCE RELINQUISHING THE LATTER TITLE TO MR BROWN LAST AUGUST 9304300153 930430 ABREAST OF THE MARKET STOCKS CLIMB AS TRADERS BRUSH OFF DISAPPOINTING ECONOMIC REPORT BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTORS BRUSHED ASIDE A DISAPPOINTING READING ON THE ECONOMY AND BID STOCKS HIGHER LATE IN THE SESSION PRICES WERE MODERATELY LOWER MOST OF THE DAY UNTIL A FLURRY OF PURCHASES IN THE FINAL 30 MINUTES TRADERS ATTRIBUTED THE TURNAROUND TO PROGRAM BUYING AND SOME INSTITUTIONAL PURCHASES TIED TO THE END OF THE MONTH ECONOMICALLY SENSITIVE STOCKS WERE PARTICULARLY STRONG CATERPILLAR JUMPED 1 3/4 TO 68 7/8 DEERE & CO CLIMBED 1 7/8 TO 60 1/2 AND ALLIEDSIGNAL RALLIED 1 1/4 TO 63 1/2 THE DOW JONES INDUSTRIAL AVERAGE WHICH HAD BEEN DOWN AS MUCH AS 20 POINTS EARLY IN THE SESSION FINISHED WITH A GAIN OF 1162 OR 034 TO 342512 BROADER AVERAGES ALSO GAINED GROUND ON THE NEW YORK STOCK EXCHANGE THERE WERE 1021 ISSUES ADVANCING AND 875 DECLINING NYSE VOLUME TOTALED 244880000 SHARES COMPARED WITH 266900000 SHARES WEDNEDAY ASIDE FROM PROGRAM BUYING EDWARD COLLINS HEAD OF US EQUITY TRADING AT DAIWA SECURITIES SAID A COUPLE OF THE STOCKS THAT HAD BEEN UNDER PRESSURE ALL DAY CAME BACK AND CARRIED THE MARKET UP AMONG THEM PHILIP MORRIS JUMPED 1 5/8 TO 47 1/4 THERE WERE A FEW PROGRAMS ON THE WAY UP BUT MOSTLY IT WAS MONTHEND BUYING SAID MICHAEL BIRCH AN INDEX ARBITRAGER AT KIDDER PEABODY OTHER TRADERS THOUGH SUGGESTED THE LATE GAINS BEGAN WITH A SINGLE FIRM'S HEAVY PURCHASES OF STOCK INDEX FUTURES THE STANDARD & POOR'S 500 STOCK INDEX INCREASED 087 OR 020 TO 43889 WHILE THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 058 OR 024 TO 24248 THE DOW JONES EQUITY MARKET INDEX INCREASED 087 OR 021 TO 41619 PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES SAID THE STRENGTH IN SOME CYCLICAL STOCKS SHOWS THAT INVESTORS ARE BETTING THAT THE ECONOMY WILL REBOUND FROM ITS WEAKNESS IN THE FIRST QUARTER THE COMMERCE DEPARTMENT REPORTED YESTERDAY MORNING THAT GROSS DOMESTIC PRODUCT THE TOTAL VALUE OF ALL GOODS AND SERVICES PRODUCED IN THE US GREW AT AN ANNUAL RATE OF JUST 18 LAST QUARTER THAT'S DOWN FROM A 47 RATE IN THE FOURTH QUARTER AND LESS THAN THE 23 GROWTH THAT ANALYSTS HAD FORECAST MR CANELO BLAMED THE DISAPPOINTING FIGURE ON THE UNUSUALLY HARSH WEATHER THAT AFFECTED PARTS OF THE COUNTRY IN THE PAST THREE MONTHS THE ECONOMY WILL UNDOUBTEDLY SNAP BACK WE DON'T HAVE BLIZZARDS IN APRIL OR MAY HE SAID MEANWHILE SELLING IN GENERAL MOTORS DESPITE THE AUTO MAKER'S IMPROVED EARNINGS REPORT HELPED HOLD THE MARKET UNDER WATER EARLY GM CLOSED WITH A LOSS OF 1 3/8 TO 41 IT POSTED FIRSTQUARTER EARNINGS OF 42 CENTS A SHARE BETTER THAN THE 34 CENTS A SHARE MEAN ESTIMATE OF ANALYSTS SURVEYED BY IBES THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM WEDNESDAY GM GAINED 2 AS SHARES OF ALL THE MAJOR AUTO MAKERS RALLIED FOLLOWING A SURPRISINGLY STRONG EARNINGS REPORT FROM FORD MOTOR FORD YESTERDAY ADDED 1/4 TO 54 3/4 WHILE CHRYSLER EASED 1/4 TO 40 3/4 SHARES OF UAL THE PARENT OF UNITED AIRLINES SKIDDED 4 7/8 TO 140 5/8 AFTER THE CHICAGO COMPANY POSTED LOWERTHANEXPECTED FIRSTQUARTER RESULTS BEFORE EXTRAORDINARY CHARGES IT HAD A LOSS OF 592 A SHARE COMPARED WITH A DEFICIT OF 452 A YEAR AGO UAL'S SLIDE HELPED PUSH THE DOW JONES TRANSPORTATION AVERAGE DOWN 725 OR 045 TO 158740 ELSEWHERE IN THE GROUP FEDERAL EXPRESS LOST 1 1/2 TO 48 3/4 AND AMR THE PARENT OF AMERICAN AIRLINES EASED 5/8 TO 67 5/8 BUT BURLINGTON NORTHERN JUMPED 1 3/8 TO 53 3/4 AND CSX ROSE 1 TO 73 1/4 USAIR SLIPPED 1/4 TO 20 7/8 ON HEAVY VOLUME OF 69 MILLION SHARES AN OFFERING OF 10 MILLION ADDITIONAL SHARES OF ITS COMMON STOCK WAS MADE AT A PRICE OF 2075 A SHARE EARNINGS NEWS LIFTED AMERICAN INTERNATIONAL SHARES 4 1/2 TO 124 1/2 EXCLUDING GAINS FROM ACCOUNTING CHANGES THE NEW YORK INSURER'S FIRSTQUARTER PROFIT REACHED 224 A SHARE UP FROM 191 BEFORE SIMILAR GAINS IN THE YEAREARLIER PERIOD MEDICAL CARE AMERICA SLUMPED 2 3/8 TO 13 3/4 LATE WEDNESDAY THE COMPANY ESTIMATED THAT ITS FIRSTQUARTER EARNINGS FELL SHORT OF THE 35 CENTS A SHARE THAT MANY SECURITIES ANALYSTS HAD PREDICTED THE DALLAS OPERATOR OF OUTPATIENT SURGICAL CENTERS THOUGH SAID ITS RESULTS WERE HIGHER THAN THE 27 CENTS IT POSTED IN THE FOURTH QUARTER ENGELHARD SURGED 2 5/8 TO 32 1/4 AFTER MERRILL LYNCH & CO UPGRADED ITS RATINGS ON THE STOCK MERRILL SAID CONCERNS OVER THE ISELIN NJ SPECIALTY CHEMICAL MAKER'S WEAK EARNINGS REPORT EARLY THIS WEEK WERE OVERDONE ANALYST JOHN ROBERTS PREDICTED A QUICK RECOVERY FOR THE COMPANY TIPHOOK LOST 2 7/8 TO 11 1/8 THE UK LESSOR OF FREIGHT TRANSPORTATION EQUIPMENT PREDICTED THAT ITS PRETAX PROFITS WILL FALL IN THE SECOND HALF FROM THE 352 MILLION 554 MILLION IT RECORDED IN THE FIRST HALF CASINORELATED STOCKS WERE STRONG PROMUS JUMPED 1 5/8 TO 39 1/2 HILTON CLIMBED 1/2 TO 45 AND CIRCUS CIRCUS INCREASED 2 TO 45 3/8 THE MISSOURI LEGISLATURE PASSED A BILL AUTHORIZING A STATE GAMING COMMISSION PAVING THE WAY FOR RIVERBOAT GAMBLING IN THAT STATE 9304300152 930430 SWISS UNION BANK SAYS AMBITIOUS' TARGETS FOR '93 WILL BE HIT ZURICH UNION BANK OF SWITZERLAND CALLED ITS 1993 GOALS AMBITIOUS BUT EXPRESSED CONFIDENCE THEY WILL BE REACHED PRESIDENT ROBERT STUDER IN AN ADDRESS PREPARED FOR THE ANNUAL SHAREHOLDERS MEETING DIDN'T PROVIDE FIGURES BUT HE SAID THE DEVELOPMENT OF THE BANK'S BUSINESS SO FAR LEADS TO THE BELIEF THAT THE GOALS CAN BE ACHIEVED HE SAID NET EARNINGS IN THE FIRST QUARTER WERE HIGHER THAN IN THE SAME PERIOD IN 1992 BUT HE SAID DIFFICULT ECONOMIC CONDITIONS PROMPT THE BANK TO BE RESERVED IN ITS FORECASTS FOR THE WHOLE YEAR THE BANK PREVIOUSLY REPORTED THAT 1992 NET GROUP PROFIT TOTALED 1343 BILLION SWISS FRANCS 9398 MILLION UP 10 FROM A YEAR EARLIER AT THE MEETING UNION BANK CHAIRMAN NIKOLAUS SENN TOLD SHAREHOLDERS THAT THE BANK IS INTERESTED IN LISTING ITS SHARES ON THE NEW YORK STOCK EXCHANGE BUT HE DIDN'T GO INTO DETAIL IN OTHER MEETING NEWS SHAREHOLDERS APPROVED A CONTROVERSIAL PROPOSAL TO CREATE AUTHORIZED CAPITAL OF 200 MILLION FRANCS NOMINAL VALUE AND CONDITIONAL CAPITAL OF 100 MILLION FRANCS NOMINAL VALUE SOME OPPONENTS HAVE FRETTED ABOUT DILUTION OF VOTING RIGHTS AND OF THE SHAREHOLDERS' POWER THE BANK ARGUED HOWEVER THAT IT WOULD LIKE TO HAVE THE AUTHORIZED SHARE CAPITAL IN PLACE SO AS TO AVOID A COSTLY SPECIAL GENERAL MEETING FOR APPROVAL OF AN ISSUE THIS WOULD ALLOW A SHARE CAPITAL INCREASE OR PLACEMENT TO FINANCE AN ACQUISITION FOR EXAMPLE ALTHOUGH THERE ARE NOW NO PLANS AS SUCH THE BANK SAID 9304300151 930430 EUROPEAN DEVELOPMENT BANK HAS PLANS TO FORM VENTURECAPITAL MUTUAL FUNDS BY JANET GUYON STAFF REPORTER OF THE WALL STREET JOURNAL WHEN HANSJOERG RUDLOFF A MEMBER OF THE EXECUTIVE BOARD OF CS HOLDING WHICH OWNS CREDIT SUISSE GETS CALLS FROM INVESTMENT FUND MANAGERS TRYING TO SELL HIM SHARES IN CZECH COMPANIES HE GIVES THEM THE COLD SHOULDER I WON'T TALK TO THEM HE TELLS A SEMINAR IN LONDON AT THE ANNUAL MEETING OF THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT BECAUSE THEY HAVE NOTHING TO SELL THE CZECHS MAY HAVE REDISTRIBUTED OWNERSHIP IN ENTERPRISES FROM THE STATE TO PRIVATE INVESTMENT FUNDS BUT AS MR RUDLOFF POINTS OUT THE COMPANIES THEMSELVES HAVEN'T CHANGED THEY HAVE NO NEW RESOURCES AND THEY HAVEN'T ACQUIRED NEW MARKETORIENTED MANAGEMENT THIS PROBLEM PERVADES THE EAST IT IS PARTLY RESPONSIBLE FOR DOUBLEDIGIT INTEREST RATES AND IT HAS LANDED THE EBRD AN AID BANK THAT IS SUPPOSED TO BANKROLL EASTERN COMPANIES BUT HASN'T FUNDED MANY ON NEWSPAPERS' FRONT PAGES DESPITE THE HUGE ADMINISTRATIVE EFFORT MADE TO PARCEL OUT OWNERSHIP OF FORMER STATE ENTERPRISES TO THE PEOPLE NONE OF THE SCHEMES ASIDE FROM SELLING TO A WESTERN COMPANY INJECT FRESH MONEY INTO THOSE ENTERPRISES NOW THE MUCHMALIGNED EBRD THINKS IT HAS A NEW IDEA UNDER A PLAN BEING DISCUSSED WITH POLISH BANKS AND THE POLISH GOVERNMENT THE DEVELOPMENT BANK WANTS TO SET UP VENTURECAPITAL MUTUAL FUNDS TO PUT MONEY AND MANAGEMENT EXPERTISE INTO MARGINAL COMPANIES THAT MIGHT OTHERWISE GO BANKRUPT GUY DE SELLIERS DEPUTY HEAD OF EBRD'S MERCHANT BANKING DIVISION STRESSES THAT HIS DIRECTORS HAVEN'T YET APPROVED THE IDEA BUT HE IS RATHER PROUDLY SHOWING IT OFF UNDER THE SCHEME EBRD THE POLISH BANKS AND THE EUROPEAN COMMUNITY'S PHARE PROGRAM WOULD PROVIDE 480 MILLION TO CREATE 12 VENTURECAPITAL FUNDS EACH WITH A MANAGEMENT COMPANY EACH WOULD GET SHARES IN MIDSIZE POLISH ENTERPRISES THAT AREN'T HEALTHY ENOUGH TO BE SOLD TO THE POLISH PUBLIC ALL THE BANKS HAVE A LARGE PORTFOLIO OF PROBLEM LOANS SAYS MR DE SELLIERS SOME OF THE COMPANIES ARE HOPELESS AND HAVE TO CLOSE DOWN BUT THERE ARE A NUMBER THAT HAVE THE POTENTIAL TO SURVIVE IT IS THESE COMPANIES ABOUT 400 STRONG THAT THE PLAN WOULD TARGET ONCE THE POLISH BANKS SELECT THE MOST VIABLE COMPANIES IN THIS CATEGORY THOSE COMPANIES WOULD BE SCREENED BY EACH OF THE VENTUREFUND MANAGEMENT COMPANIES EBRD ESTIMATES ABOUT 180 CAREFULLY REVIEWED COMPANIES WOULD GO THROUGH THE PROGRAM WE AREN'T GOING TO LOOK AT EVERY COMPANY THAT WALKS IN THE DOOR SAYS SPYROS PAPAS A PRINCIPAL BANKER AT EBRD BEFORE ENTERING THE PROGRAM EACH ENTERPRISE WOULD BE REQUIRED TO RESTRUCTURE ITS DEBT PERHAPS SWAPPING SOME DEBT FOR EQUITY IT ALSO WOULD BE REQUIRED TO DEVELOP A TURNAROUND PLAN ONCE IN THE FUNDS THE COMPANIES WOULD GET SOME MONEY AND ACCESS TO MANAGEMENT EXPERTISE PERHAPS THEY HAVE A GOOD PRODUCT BUT THE PACKAGING IS TERRIBLE AND NOW THAT THEY ARE COMPETING WITH WESTERN COMPANIES THEY NEED A NEW PACKAGING MACHINE SAYS MR PAPAS AT THE END OF FIVE YEARS THE VENTURECAPITAL FUNDS WOULD SELL OFF THEIR PORTFOLIOS AND GO OUT OF BUSINESS EBRD PLANS TO PUT UP 240 MILLION OF ITS OWN MONEY FOR THE VENTURE FUNDS TAKING BACK 80 MILLION IN SENIOR NOTES 80 MILLION IN PREFERENCE SHARES OF THE FUNDS AND 80 MILLION IN GOVERNMENTGUARANTEED SUBORDINATED NOTES ISSUED BY THE POLISH BANKS THE POLISH BANKS WOULD CONTRIBUTE THEIR 80 MILLION IN RETURN FOR PREFERENCE SHARES AS WELL AS AN ADDITIONAL 160 MILLION IN RETURN FOR SENIOR NOTES EC PHARE WOULD PUT IN 40 MILLION IN GRANT MONEY AND GIVE THE POLISH GOVERNMENT 40 MILLION THE POLISH GOVERNMENT WOULD IN TURN INVEST ITS 40 MILLION IN PREFERENCE SHARES OF THE FUNDS THE GOVERNMENT ALSO WOULD CONTRIBUTE THE EQUITY OF THE TROUBLED COMPANIES TO THE FUND ALL OF THE PARTIES WOULD MAKE MONEY IF THE VALUE OF THE COMPANIES IMPROVED THE MAJOR WEAKNESS OF THE PLAN BESIDES HOW TO LIQUIDATE THE FUNDS IN FIVE YEARS IS FINDING TURNAROUND EXPERTS WHO WANT TO LIVE IN POLAND IN THE END THE SUCCESS OF THE PROGRAM DEPENDS ON THE QUALITY OF THE PEOPLE WE ATTRACT SAYS MR PAPAS MANAGEMENT EXPERTISE BUT IF THE PROGRAM WORKS IT ALSO WILL GIVE THE POLISH BANKS EXPERIENCE IN DEALING WITH COMPANIES GOING THROUGH TURNAROUND SITUATIONS IT IS THE ONLY PROGRAM THAT PROVIDES NEW MONEY AS WELL AS MANAGEMENT EXPERTISE WITHOUT A STRATEGIC INVESTOR COMING IN SAYS MR PAPAS THE CZECHS TOO ARE LOOKING AT WAYS TO BRING CAPITAL TO COMPANIES WITHOUT STRATEGIC INVESTORS LIKE THEIR POLISH COUNTERPARTS CZECH COMPANIES FIND THEY CAN'T GET LONGTERM CREDIT FROM BANKS AT REASONABLE RATES THIS FORCES THEM TO FOCUS ON SHORTTERM PROBLEMS SUCH AS MAKING PAYROLLS RATHER THAN LONGTERM PLANS CZECH OFFICIALS SAY THEY PLAN TO MEET WITH EBRD THIS WEEK TO DISCUSS SETTING UP A NEW BANKING VEHICLE THAT WOULD GIVE THE COMMERCIAL BANKS SOME COMPETITION AN EXPORTIMPORT BANK FUNDED BY EBRD FOR EXAMPLE MIGHT BE A WAY TO FUNNEL OUTSIDE CAPITAL INTO THE COUNTRY AT LOWER RATES THAN ARE NOW AVAILABLE LOWERCOST CREDIT IN THE CZECH REPUBLIC WOULD BE PARTICULARLY WELCOME NOW A LONGDELAYED BANKRUPTCY LAW FINALLY HAS GONE INTO EFFECT THERE AND AT LEAST A THIRD OF CZECH COMPANIES ARE THOUGHT TO BE BANKRUPTCY CANDIDATES IF THEY DON'T RESTRUCTURE A CZECH OFFICIAL SAYS THE COMMERCIAL BANKS WHICH ALSO OPERATE INVESTMENT FUNDS HOLDING SHARES IN COMPANIES PROBABLY WILL LET A COUPLE OF COMPANIES GO BANKRUPT JUST TO SET AN EXAMPLE 9304300150 930430 WHO'S NEWS HEAD OF COLUMBIA GAS TO RETIRE WHEN FIRM LEAVES CHAPTER 11 WILMINGTON DEL JOHN H CROOM CHAIRMAN AND CHIEF EXECUTIVE OF COLUMBIA GAS SYSTEM INC SAID HE WILL RETIRE WHEN THE COMPANY EMERGES FROM ITS CURRENT CHAPTER 11 BANKRUPTCY PROCEEDING HE SAID DIRECTORS AND EQUITY HOLDERS HAVE AGREED THAT HIS SUCCESSOR SHOULD NOT BE A CURRENT EXECUTIVE OR DIRECTOR OF THE COMPANY MR CROOM 60 YEARS OLD HAS PREVIOUSLY SAID APPROVAL OF A REORGANIZATION PLAN DOESN'T APPEAR LIKELY THIS YEAR BOTH COLUMBIA GAS AND ITS PRINCIPAL PIPELINE SUBSIDIARY HAVE BEEN OPERATING AS DEBTORS IN POSSESSION UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE SINCE JULY 31 1991 MR CROOM TOLD THE ANNUAL MEETING THAT NEGOTIATIONS WITH THE SUBSIDIARY'S CREDITORS ABOUT A NEGOTIATED REORGANIZATION PLAN SO FAR HAVEN'T BEEN FRUITFUL HE SAID THE PIPELINE UNIT'S MANAGEMENT EXPECTS TO PROPOSE ITS OWN REORGANIZATION PLAN PRIOR TO JULY 23 WHEN EXISTING EXCLUSIVE AUTHORITY TO FILE SUCH A PLAN EXPIRES COLUMBIA GAS SAID IT ESTIMATES THAT FIRST QUARTER NET INCOME WILL BE ABOUT 140 MILLION OR 277 A SHARE COMPARED WITH 11 MILLION OR 21 CENTS A SHARE A YEAR EARLIER HOWEVER BOTH QUARTERS WILL INCLUDE SEVERAL UNUSUAL ITEMS OFFICIALS SAID A MORE NORMAL COMPARISON WOULD INDICATE FIRST QUARTER NET INCOME OF 89 MILLION UP 24 FROM AN ADJUSTED 72 MILLION A YEAR AGO MAINLY DUE TO INCREASED NATURAL GAS THROUGHPUT BY ITS DISTRIBUTION AND TRANSMISSION BUSINESSES DUE TO COLDER TEMPERATURES THIS YEAR AND OTHER FACTORS 9304300148 930430 ELECTROLUX RETURNS TO FILL A VACUUM IN EASTERN EUROPE OFFICIALS SET SIGHTS ON RUSSIA EXPECTING SWEEPING SALES IN A VAST COMPLEX MARKET BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL RESTORING LINKS WITH EASTERN EUROPEAN COUNTRIES AFTER DECADES OF COMMUNIST RULE CAN BE UNPREDICTABLE TAKE THE CASE OF THE FIRST VACUUM CLEANER IN 41 YEARS SOLD BY AB ELECTROLUX IN FORMER CZECHOSLOVAKIA THE SWEDISH APPLIANCE GIANT HAS A LONG TRADITION OF DISPATCHING SENIOR EXECUTIVES INTO THE FIELD FOR PERIODIC STINTS OF DOORTODOOR SELLING CARRYING TWO VACUUM CLEANERS ON A FLIGHT FROM STOCKHOLM TWO YEARS AGO PER THURESSON OPTED TO DO HIS REFRESHER STINT IN PRAGUE CZECHOSLOVAKIA HAD BEEN A PRIME MARKET FOR ELECTROLUX FROM 1922 UNTIL ITS LOCAL UNIT WAS NATIONALIZED IN 1941 BUT MR THURESSON HAD NO WAY OF KNOWING THE BRAND NAME HAD REMAINED IMMENSELY POPULAR IT HELPED THAT THE CZECH WORD FOR VACUUM CLEANING IS LUXA AND THAT A HANDSOME VACUUM CLEANER SALESMAN HAD BEEN THE HERO OF A BESTSELLING CZECH NOVEL OF THE 1950S LATER MADE INTO A POPULAR FEATURE FILM AT THE FIRST BUILDING HE VISITED MR THURESSON SOLD A VACUUM CLEANER RETURNING FOR PAYMENT THE NEXT DAY HE WAS MET BY ALL THE BUILDING'S WOMEN RESIDENTS WHO PLEADED WITH HIM TO GIVE THEIR HUSBANDS JOBS AS ELECTROLUX SALESMEN IT HASN'T ALWAYS BEEN QUITE SO EASY BUT ELECTROLUX HAS PICKED UP WHERE IT WAS FORCED TO LEAVE OFF IN MANY EASTERN EUROPEAN MARKETS LAST YEAR SALES IN THE REGION SOARED 70 TO 21 BILLION SWEDISH KRONOR 291 MILLION THAT'S STILL A MEAGER 2 OF ELECTROLUX GROUP SALES BUT SENIOR EXECUTIVES EXPECT SALES TO TRIPLE DURING THE NEXT FIVE YEARS NEARLY HALF OF LAST YEAR'S EASTERN EUROPEAN SALES CAME IN HUNGARY WHERE ELECTROLUX GRABBED A FIRM FOOTHOLD BY ACQUIRING LEHEL A FORMER SUPPLIER AND THE COUNTRY'S BIGGEST REFRIGERATOR MANUFACTURER UNDER AN AMBITIOUS INVESTMENT PROGRAM THE SWEDES PLAN TO PLOW UP TO 80 MILLION KRONOR A YEAR INTO LEHEL FACTORIES THROUGH 1995 BROADENING THE PRODUCT RANGE AND INCREASING CAPACITY TO MORE THAN ONE MILLION APPLIANCES A YEAR FROM THE CURRENT ANNUAL OUTPUT OF 620000 UNITS AFTER RESUMING OPERATIONS IN HUNGARY AND CZECHOSLOVAKIA IN 1991 ELECTROLUX MOVED INTO POLAND AND THE BALTIC REPUBLICS DURING 1993 THIS YEAR OPERATIONS ALSO BEGAN IN MOSCOW AND ST PETERBURG RUSSIA WHILE A NEW COMPANY WAS SET UP IN BRATISLAVA THE CAPITAL OF SLOVAKIA FOLLOWING THE BREAKUP OF CZECHOSLOVAKIA INTO THE CZECH REPUBLIC AND SLOVAKIA YET FOR ALL THE ACTIVITY IN EASTERN EUROPEAN COUNTRIES ELECTROLUX EXECUTIVES HAVE SET THEIR SIGHTS MAINLY ON BREAKING INTO THE VAST RUSSIAN MARKET THE SWEDES USED THEIR PROWESS IN CHAIN SAWS TO CUT THEIR WAY INTO RUSSIA VIA A JOINT VENTURE ELECTROLUXDESIGNED SAWS MODIFIED WITH QUIRKY GRIPS RESEMBLING BICYCLE HANDLE BARS TO SUIT SOVIET LOGGING TECHNIQUE ARE BEING ASSEMBLED IN A PLANT LOCATED NEAR MOSCOW AND SOLD THROUGH STATE OWNED TRADE ORGANIZATIONS OUTPUT REMAINS MODEST HOWEVER ESPECIALLY CONSIDERING THE HUGE POTENTIAL MARKET TO FULLY TAP RUSSIA'S CHAIN SAW POTENTIAL ELECTROLUX WOULD HAVE TO ESTABLISH LOCAL PRODUCTION MR BAGGE SAYS IT'S STILL UNCERTAIN WHEN OR EVEN IF RUSSIAN AUTHORITIES MIGHT PERMIT ELECTROLUX TO SET UP ITS OWN PLANT TO PRODUCE CHAIN SAWS OR ANY OTHER PRODUCTS SUCH AS APPLIANCES BUT THERE HAVE BEEN UPBEAT SIGNALS RECENTLY AFTER SEEING VIRTUALLY NO PROGRESS AMID DEEPENING FINANCIAL WOES THE PAST TWO YEARS TALKS WITH RUSSIAN AUTHORITIES HAVE NOW RESUMED ABOUT A NUMBER OF POTENTIAL PROJECTS SAYS MAGNUS KARLBERG PRESIDENT OF ELECTROLUX INTERNATIONAL GROUP THE UNIT SPEARHEADING THE PUSH INTO RUSSIA ONE OF THE MOST INTRIGUING PROSPECTS INVOLVES POSSIBLE COOPERATION ON APPLIANCE OPERATIONS WITH FAMED RUSSIAN AUTO MAKER ZIL LAST YEAR ELECTROLUX SOLD ZIL A 100 MILLION TURNKEY FACTORY FOR MANUFACTURE OF SMALL COMPRESSORS A KEY COMPONENT IN REFRIGERATORS BY CONTRAST WITH THE CHAIN SAW JOINT VENTURE THE ZIL TRANSACTION WAS STRICTLY A SALE OF KNOWHOW BUT MR KARLBERG SAYS ELECTROLUX WOULD BE OPEN TO JOINT VENTURE IDEAS INVOLVING APPLIANCES IN EXCHANGE FOR TRANSFER OF ADDITIONAL KNOWHOW HE SUGGESTED THE SWEDISH CONCERN MIGHT AGREE TO EQUITY PARTICIPATION IN AN APPLIANCE PRODUCTION VENTURE AND PERHAPS ALSO OFFER TO MARKET APPLIANCES PRODUCED BY ZIL THROUGH THE ELECTROLUX GLOBAL NETWORK REFRIGERATORS ARE LESS INTERESTING SINCE NEARLY 95 OF RUSSIAN HOUSEHOLDS ALREADY HAVE REFRIGERATORS TODAY MR KARLBERG SAYS WHERE ELECTROLUX POSSIBLY WITH A PARTNER COULD REALLY CLEAN UP IS IN VACUUM CLEANERS ONLY ABOUT 20 OF RUSSIAN HOUSEHOLDS OWNS A VACUUM CLEANER TODAY AND THOSE RUSSIAN MODELS OF NOTORIOUSLY POOR QUALITY OF COURSE STARTING LOCAL PRODUCTION IN RUSSIA IS A DAUNTING STRATEGIC AND FINANCIAL CHALLENGE EVEN FOR A GLOBAL POWERHOUSE LIKE ELECTROLUX TO BE COMPETITIVE IT WOULD HAVE TO BE 100 LOCAL PRODUCTION INCLUDING ALL COMPONENTS MR KARLBERG SAID AND OUTPUT OF SUCH A PLANT HE MUSED WOULD HAVE TO BE BETWEEN 300000 UNITS AND 400000 UNITS A YEAR ONLY ABOUT ONETHIRD THE MINIMUM CRITICAL MASS REQUIRED FOR A MODERN APPLIANCE FACTORY IN THE WEST BUT STILL A MASSIVE FINANCIAL GAMBLE FOR NOW LEGAL UNCERTAINTIES ABOUT JOINT VENTURES AND LAND OWNERSHIP REMAIN ALMOST INSURMOUNTABLE HURDLES TO SUCH A PROJECT THE ELECTROLUX EXECUTIVE ADDED STILL MR KARLBERG ACKNOWLEDGES THAT A DELEGATION OF ELECTROLUX OFFICIALS IS CURRENTLY IN RUSSIA SCOUTING FOR POTENTIAL COMPONENT SUPPLIERS 9304300147 930430 MANAGEMENT FIRMS GOING OUTSIDE FOR TOP BOSSES OFTEN HIRE TROUBLE BY JOANN S LUBLIN STAFF REPORTER OF THE WALL STREET JOURNAL BESET BY RED INK OR OTHER ILLS COMPANIES OFTEN STUMBLE INTO FRESH TROUBLE WHEN THEY TRY TO RECRUIT EXECUTIVE SAVIORS FROM OUTSIDE THEIR RANKS THIS WEEK EASTMAN KODAK CO BECAME THE LATEST COMPANY TO EXPERIENCE TURMOIL FOLLOWING APPOINTMENT OF SUCH AN OUTSIDER IN LATE FEBRUARY JAMES D ROBINSON III WAS TOPPLED AS CHIEF EXECUTIVE OF AMERICAN EXPRESS CO PARTLY BECAUSE INVESTORS CRITICIZED HIS FAILURE TO FIND AN OUTSIDE SUCCESSOR LAST APRIL THOMAS J JOHNSON STEPPED DOWN TWO WEEKS AFTER OLYMPIA & YORK DEVELOPMENTS LTD RECRUITED HIM FROM THE OUTSIDE TO BE PRESIDENT AT KODAK CHRISTOPHER J STEFFEN ABRUPTLY QUIT LATE TUESDAY AS CHIEF FINANCIAL OFFICER IN A CLASH WITH HIS BOSS OVER HOW QUICKLY TO SELL ASSETS AND CUT COSTS AT THE CONSERVATIVE PHOTOGRAPHICEQUIPMENT PRODUCER IN ROCHESTER NY MR STEFFEN WHO WANTED TO MOVE FASTER THAN CHAIRMAN KAY WHITMORE HAD HELD HIS POST FOR LESS THAN THREE MONTHS HIS DEPARTURE KNOCKED 17 BILLION OFF MARKET VALUE OF THE COMPANY'S STOCK WEDNESDAY MANAGEMENT EXPERTS SAY BOARDS OF DIRECTORS EVERYWHERE ARE UNDER GREATER PRESSURE NOWADAYS TO FILL TOP JOBS QUICKLY DIRECTORS SOMETIMES FAIL TO GAUGE WHETHER A NEW EXECUTIVE ESPECIALLY BELOW THE CHIEF EXECUTIVE OFFICER'S LEVEL WILL MESH WITH EXISTING SENIOR MANAGEMENT THERE IS THIS PRESSURE TO DO A SEARCH QUICKLY THAT'S WHERE A LOT OF RECRUITERS CAN FUMBLE THE BALL THEY NEED TO DO IT SO FAST SAYS SCOTT SCANLON COEDITOR OF EXECUTIVE SEARCH REVIEW AN INDUSTRY NEWSLETTER RECRUITERS AREN'T GOING TO GET EVERY SEARCH RIGHT BECAUSE YOU DON'T HAVE ENOUGH TIME TO JUDGE THE FIT SAYS WINDLE PRIEM A FINANCIALSERVICES INDUSTRY RECRUITER FOR KORN/FERRY INTERNATIONAL MR PRIEM WHO SAYS HE OFTEN RECRUITS A TEAM OF SIX EXECUTIVES AT A TIME SAYS HE NOW FEELS LIKE A HERO WHEN ONLY ONEFOURTH DON'T WORK OUT BECAUSE OF THE HASTE AND THE FACT THAT SO MANY COMPANIES ARE IN TURNAROUND SITUATIONS I THINK YOU ARE GOING TO HAVE MORE MISMATCHING MR PRIEM ADDS A MISMATCH ALSO CAN OCCUR BECAUSE A COMPANY RARELY LOOKS OUTSIDE FOR SENIOR TALENT AT KODAK MR STEFFEN WAS THE PRODUCT OF THE COMPANY'S FIRST FORAY FOR TOP MANAGEMENT OUTSIDE ITS OWN RANKS IN 20 YEARS THERE COULD HAVE BEEN NAIVETE ON KODAK'S PART BECAUSE OF SUCH INEXPERIENCE SAYS FRED WACKERLE A PARTNER WITH MCFEELY WACKERLE & SHULMAN AN EXECUTIVERECRUITING FIRM IN CHICAGO SOME OBSERVERS BLAME THE KODAK MISMATCH ON RUSSELL REYNOLDS ASSOCIATES INC THE SEARCH FIRM THAT RECRUITED MR STEFFEN AND IS HUNTING FOR HIS REPLACEMENT RUSSELL REYNOLDS DIDN'T ADEQUATELY PLUMB THE DEPTHS ABOUT WHAT KODAK WANTED IN ITS NEW CHIEF FINANCIAL OFFICER ARGUES GARY KISSLER A DALLAS MANAGEMENT CONSULTANT AND AUTHOR OF A BOOK ABOUT MANAGING CORPORATE CHANGE COMPANIES ASK FOR LEE IACOCCA MR KISSLER NOTES BUT WHAT THEY REALLY WANT IS CASPAR MILQUETOAST AT THE SAME TIME ONE HEADHUNTER SUGGESTS A COMPANY IS OFTEN NOT AS CANDID WITH US AS THEY SHOULD BE ABOUT ITS PROBLEMS BEFORE RECRUITING AN OUTSIDE SENIOR EXECUTIVE I THINK A LITTLE OF THAT HAPPENED AT KODAK THE RECRUITER ADDS ANDREW HART A RUSSELL REYNOLDS MANAGING DIRECTOR SAYS KODAK WOULDN'T HAVE REHIRED US TO DO THE SEARCH IF THEY HAD POINTED A FINGER AT US OVER MR STEFFEN'S DEPARTURE INDUSTRY PRACTICE IS FOR RECRUITERS TO SIMPLY CHARGE THEIR EXPENSE AND NOT AN ADDITIONAL FEE IF AN EXECUTIVE LEAVES WITHIN A YEAR RUSSELL REYNOLDS DECLINED TO COMMENT ON ITS CURRENT COMPENSATORY ARRANGEMENTS WITH KODAK MR HART RECALLS THAT IN RECRUITING MR STEFFEN HE TALKED EXTENSIVELY TO HIS PREVIOUS SUBORDINATES EQUALS AND SUPERIORS AND MR WHITMORE CONSULTED WITH THE TOP BRASS AT HONEYWELL INC WHERE MR STEFFEN ASSISTED IN A THREEYEAR TURNAROUND ACCORDING TO MR HART MR STEFFEN IS A VERY TOUGH GUY WHO BELIEVES IN HIS AGENDA MR HART SAYS MR WHITMORE TOLD A GROUP OF ANALYSTS IN NEW YORK WEDNESDAY NIGHT THAT HE WAS AWARE THAT HIS STYLE DIFFERED FROM MR STEFFEN'S FROM THE OUTSET WE KNEW WE'D HAVE IMMENSE DISAGREEMENTS THE KODAK CHAIRMAN SAID IN OTHER INSTANCES A MISMATCH OCCURS BECAUSE OF UNANTICIPATED PERSONALITY DIFFERENCES BETWEEN A CEO AND THE NEWLY RECRUITED EXECUTIVE IT'S DIFFICULT TO KNOW ABOUT THE HUMAN CHEMISTRY AHEAD OF TIME SAYS WALTER WRISTON A RETIRED CITICORP CHAIRMAN AND MEMBER OF EIGHT CORPORATE BOARDS KEYCORP A BANKHOLDING CONCERN IN ALBANY NY RECRUITED GREGORY DILLETT AS AN EXECUTIVE VICE PRESIDENT IN JANUARY 1992 HE LEFT THREE MONTHS LATER THERE WERE PERSONALITY DIFFERENCES HIS PERSONALITY WASN'T THE RIGHT FIT FOR KEYCORP THOUGH WE THOUGHT SO AT THE TIME HE WAS HIRED RECALLS ROBERT PEYSER A MIAMI RECRUITER WHO HANDLED THE KEYCORP SEARCH AND SAYS HE HAS PLACED ABOUT 15 OTHER EXECUTIVES THERE SUCCESSFULLY A PERSON KNOWLEDGEABLE ABOUT THE KEYCORP SITUATION OFFERS A DIFFERENT EXPLANATION HE SAYS MR DILLETT WAS FORCED OUT AFTER VICTOR RILEY CHAIRMAN AND CHIEF EXECUTIVE OFFICER DECIDED TO DELAY HIS PLANNED RETIREMENT IN 1994 FOR ANOTHER THREE YEARS KEYCORP OFFICIALS COULDN'T BE REACHED FOR COMMENT YESTERDAY LENGTHY PLANNING MAY NOT EVEN HELP PREVENT MISMATCHES CONSIDER MR JOHNSON A FORMER MANUFACTURERS HANOVER TRUST CO PRESIDENT HE NEGOTIATED FOR EIGHT MONTHS BEFORE ASSUMING THE PRESIDENCY LAST YEAR OF OLYMPIA & YORK A CANADIAN CONGLOMERATE HE ALSO SECURED AN 11PAGE CONTRACT MR JOHNSON RECRUITED BY O&Y'S CHIEF STRATEGIST PAUL REICHMANN STEPPED DOWN AFTER TWO WEEKS IN A DISPUTE ABOUT MONEY AND CONTROL OF THE COMPANY'S RESTRUCTURING DESPITE HIS PROTRACTED TALKS MR JOHNSON HADN'T FORESEEN THE POSSIBILITY OF A POWER STRUGGLE WITH MR REICHMANN THAT WAS A CONTRIBUTING FACTOR TO HIS DEPARTURE SAYS AN INDIVIDUAL WITH CLOSE TIES TO O&Y SOMETIMES A COMPANY AND A NEW EXECUTIVE HAVE OPPOSITE EXPECTATIONS FOR HOW TO HANDLE ALTERED CIRCUMSTANCES RUSSELL CRAIG SAYS DIGITAL EQUIPMENT CORP LURED HIM FROM CONSULTANTS ARTHUR D LITTLE INC IN THE FALL OF 1991 TO RUN ITS GLOBAL MANAGEMENT AND INFORMATION SYSTEMS CONSULTING ACTIVITY THEN A RELATIVELY NEW BUSINESS AREA FOR DIGITAL MR CRAIG SAYS HE RESIGNED LAST NOVEMBER AFTER DIGITAL'S NEW CHIEF EXECUTIVE ROBERT B PALMER DECIDED TO REORGANIZE THE COMPANY AMID WIDENING ECONOMIC WOES AS A RESULT MR CRAIG SAYS THE COMPANY SWITCHED ITS INFORMATION SYSTEMS CONSULTING ACTIVITY TO A SUPPORT FUNCTION FROM A SEPARATE BUSINESS LINE I THOUGHT THE PRESSURE TO CHANGE DIGITAL WOULD FACILITATE THEIR BUILDING OF THAT BUSINESS WHAT I DIDN'T EXPECT THEM TO DO WAS DEEMPHASIZE BUILDING THE BUSINESS SAYS MR CRAIG NOW AN ARTHUR D LITTLE VICE PRESIDENT A DIGITAL SPOKESWOMAN DECLINES TO SAY WHY HE LEFT THE COMPANY GAUTAM NAIK CONTRIBUTED TO THIS ARTICLE SOME RECENT EXAMPLES OF CORPORATE TURMOIL RESULTING FROM THE APPOINTMENT OF AN OUTSIDE EXECUTIVE OR A SEARCH FOR ONE 9304300146 930430 CANADA'S FARMERS PLAN AN 86 CUT IN WHEAT ACREAGE BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA CANADIAN FARMERS INTEND TO SHIFT A SUBSTANTIAL SHARE OF THEIR ACREAGE THIS YEAR FROM WHEAT TO OTHER CROPS INCLUDING BARLEY AND OILSEEDS THE PLANNED SWITCH WAS PROMPTED PARTLY BY DEPRESSED WHEAT PRICES AND BY LAST YEAR'S DISAPPOINTING WHEAT CROP FARM ANALYSTS SAID STATISTICS CANADA A GOVERNMENT AGENCY SAID YESTERDAY THAT AN EARLY APRIL SURVEY OF FARMERS INDICATES THEY INTEND TO REDUCE TOTAL WHEAT SEEDING THIS YEAR BY 86 TO 325 MILLION ACRES IF CONFIRMED BY ACTUAL SEEDING THIS YEAR'S WHEAT ACREAGE WOULD BE THE SMALLEST SINCE THE DROUGHT YEAR OF 1988 THE SWITCH OUT OF WHEAT WILL BE MUCH BIGGER THAN WAS EXPECTED SAID SHAWN MCCOMB A SENIOR CANADIAN CROP ANALYST AT WEFA GROUP AN ECONOMICCONSULTING FIRM BASED IN BALA CYNWYD PA THIS YEAR'S SEEDING INTENTIONS INCLUDE 283 MILLION ACRES OF SPRING WHEAT DOWN 86 FROM 1992 SPRING WHEAT CANADA'S BIGGEST WHEAT CROP IS SEEDED IN THE SPRING AND HARVESTED IN THE FALL DURUM WHEAT ACREAGE IS EXPECTED TO TOTAL 35 MILLION ACRES DOWN 56 FROM LAST YEAR DURUM WHEAT WHICH IS EXPORTED TO THE US IN SIGNIFICANT VOLUMES IS USED TO MAKE PASTA PRODUCTS THE FARMERS INTEND TO BOOST THEIR SEEDING OF RAPESEED ALSO KNOWN AS CANOLA BY 18 TO 93 MILLION ACRES CANOLA IS CANADA'S BIGGEST OILSEED CROP GROWERS ALSO INTEND TO INCREASE THEIR FLAXSEED ACREAGE BY MORE THAN 74 AND THEIR SOYBEAN ACREAGE BY MORE THAN 10 ACREAGE FOR BARLEY CANADA'S MAIN FEEDGRAIN IS EXPECTED TO RISE MORE THAN 12 TO 113 MILLION ACRES CANADIAN BARLEY GROWERS ARE AIMING FOR A MAJOR EXPANSION OF THEIR SALES IN THE US AGRICULTURE MINISTER CHARLES MAYER IS TO DECIDE SOON WHETHER TO ALLOW UNRESTRICTED EXPORTS OF BARLEY TO THE US A SPOKESMAN FOR THE MINISTER SAID THE CANADIAN WHEAT BOARD A GOVERNMENT AGENCY CURRENTLY HANDLES EXPORT SALES OF BARLEY TO THE US AND OTHER MARKETS BUT BARLEY GROWERS CONTEND THEIR US SALES WOULD BE MUCH HIGHER IF THEY WERE ALLOWED TO MARKET THE GRAIN THEMSELVES IMPORTS OF US BARLEY INTO CANADA AREN'T PERMITTED AND UNDER THE USCANADA FREE TRADE AGREEMENT WON'T BE ALLOWED UNTIL THE US GOVERNMENT SUPPORT LEVEL FOR BARLEY FALLS TO THE LEVEL OF CANADIAN GOVERNMENT SUPPORT COLIN CARTER PROFESSOR OF AGRICULTURAL ECONOMICS AT THE UNIVERSITY OF CALIFORNIA SAID IN A REPORT THIS MONTH TO THE CANADIAN AGRICULTURE DEPARTMENT THAT SIGNIFICANT OPPORTUNITIES EXIST FOR EXPANDED SALES OF BOTH FEED AND MALTING BARLEY TO THE US MALTING BARLEY IS USED TO PRODUCE BEER THE US PRODUCES 75 AS MUCH BARLEY AS CANADA BUT 13 TIMES AS MUCH FEEDGRAINS CANADIAN BARLEY EXPORTS TO THE US AVERAGED 13 MILLION BUSHELS A YEAR DURING THE PAST FIVE YEARS 33 OF WHICH WAS FOR FEEDGRAIN AND 66 FOR THE MALT MARKET WAYNE KRIZ VICE PRESIDENT OF THE WESTERN BARLEY GROWERS' ASSOCIATION TOLD A PARLIAMENTARY COMMITTEE YESTERDAY THAT THE US OFFERS HUGE MARKET POTENTIAL FOR CANADIAN BARLEY 9304300145 930430 AT US BEHEST SOME IMF MEMBERS DELAY MOVES LEADING TO NEW VIETNAM LOANS BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON RESPONDING TO A US REQUEST SOME MEMBERS OF THE INTERNATIONAL MONETARY FUND HAVE POSTPONED FOR 90 DAYS ACTIONS THAT WOULD HAVE LED TO THE RESUMPTION OF LENDING TO VIETNAM A GROUP OF NATIONS LED BY FRANCE HAD BEEN PREPARING TO LEND VIETNAM 140 MILLION THAT HANOI WOULD USE TO PAY OFF OLD DEBTS TO THE IMF ONCE ITS ARREARS ARE PAID VIETNAM WOULD BE ELIGIBLE FOR HUGE LOANS FROM THE IMF AND OTHER INTERNATIONAL FINANCIAL INSTITUTIONS TO HELP REBUILD ITS ECONOMY THE ISSUE IS NOW EXPECTED TO BE DISCUSSED AT AN IMF EXECUTIVE DIRECTOR'S MEETING SET FOR EITHER MIDJUNE OR JULY THE US WILL BE PREPARED TO DISCUSS VIETNAM'S ARREARS AT THAT TIME A STATE DEPARTMENT OFFICIAL SAID THE US WHICH MAINTAINS AN ECONOMIC EMBARGO OF VIETNAM HAS OPPOSED HANOI'S REENTRY INTO THE IMF THERE WERE STRONG INDICATIONS HOWEVER THAT FRANCE AND OTHER COUNTRIES INCLUDING JAPAN HAD GROWN IMPATIENT WITH WASHINGTON AND WERE READY TO MOVE AHEAD DURING THE IMF MEETING CURRENTLY BEING HELD HERE BUT EARLIER THIS MONTH A RUSSIAN DOCUMENT SURFACED THAT SUGGESTED VIETNAM SECRETLY HELD BACK HUNDREDS OF US PRISONERS OF WAR AFTER IT SAID IT HAD RELEASED ALL POWS IN 1973 SEVERAL SENIOR US OFFICIALS INCLUDING RETIRED GEN JOHN VESSEY PRESIDENT CLINTON'S SPECIAL ENVOY TO VIETNAM HAVE SINCE CAST DOUBT ON THE ACCURACY OF THE DOCUMENT WHICH PURPORTS TO BE A TRANSLATION OF A 1972 REPORT TO VIETNAM'S POLITBURO NEVERTHELESS THE DOCUMENT ENFLAMED THE WOUNDS THAT PERSIST NEARLY TWO DECADES AFTER THE US MILITARY DEFEAT THERE A SENIOR US OFFICIAL SAID THAT IN DISCUSSIONS THIS WEEK THE NATIONS PUSHING THE LOAN AGREED TO A DELAY BECAUSE WE MADE IT CLEAR THAT WE DIDN'T WANT TO HAVE THE ISSUE RAISED THE ADMINISTRATION EXPECTS THAT BY JUNE IT WILL HAVE COMPLETED ITS REVIEW OF THE RUSSIAN DOCUMENT AND ALSO HAD MORE TIME TO ASSESS VIETNAM'S OVERALL COOPERATION IN RESOLVING CASES OF US SOLDIERS WHO ARE YET UNACCOUNTED FOR GEN VESSEY AND OTHER US OFFICIALS SAY HANOI GENERALLY HAS BEEN HELPFUL BEFORE THE RUSSIAN DOCUMENT SURFACED IN AN ARCHIVE IN MOSCOW THE ADMINISTRATION HAD BEEN INCHING TOWARD IMPROVING TIES WITH HANOI EARLIER THIS MONTH PRESIDENT CLINTON DISPATCHED GEN VESSEY TO VIETNAM TO REPORT ON THE CURRENT LEVEL OF HANOI'S COOPERATION US OFFICIALS HAD INDICATED THAT IF THE REPORT WAS POSITIVE MR CLINTON WOULD BE INCLINED TO GIVE THE IMF THE GREEN LIGHT ON VIETNAM THE 18YEAROLD EMBARGO OF VIETNAM IS BEING VIRTUALLY IGNORED BY OTHER NATIONS AND THE US ADMINISTRATION RECENTLY HAS BEEN LOBBIED INTENSIVELY BY CORPORATIONS WHICH COMPLAIN THAT THEY ARE BEING KEPT OUT OF A POTENTIALLY LUCRATIVE MARKET ONCE THE IMF RESUMES LENDING PRESSURE ON THE WHITE HOUSE WOULD INTENSIFY SUCH A MOVE WOULD MEAN THAT THE IMF WHICH IS FUNDED PARTLY BY US TAXPAYERS WOULD BE MAKING LOANS TO VIETNAM FOR PROJECTS ON WHICH US COMPANIES WOULD BE BARRED FROM SUBMITTING BIDS 9304300144 930430 BUSINESS BRIEFS LTV STEEL CO OPENED A SALES OFFICE IN MEXICO CITY BMC INDUSTRIES INC AGREED TO SELL APERTURE MASK PRODUCTS EQUIPMENT AND RELATED TECHNOLOGY TO CHINA NATIONAL ELECTRONICS IMPORT & EXPORT CORP FOR 26 MILLION AMERICAN TELEPHONE & TELEGRAPH CO WON A CONTRACT VALUED AT MORE THAN 30 MILLION TO INSTALL A VOICE MESSAGING NETWORK FOR THE INTERNAL REVENUE SERVICE AND OTHER AGENCIES OF THE TREASURY DEPARTMENT DUTY FREE INTERNATIONAL INC AGREED TO BUY A 75 INTEREST IN BARED JEWELERS OF THE VIRGIN ISLANDS INC FOR 13 MILLION IN A CASH AND STOCK COMBINATION DOFASCO INC AND COSTEEL INC CHOSE A SITE IN KENTUCKY TO BUILD THEIR FLATROLLED STEEL MINIMILL PHARMACEUTICAL MARKETING SERVICES INC ACQUIRED AN 80 STAKE IN IMR FINANCE SA FOR ABOUT 377 MILLION IN CASH AND STOCK 9304300143 930430 DOWNSIZING SPURS DEMAND FOR FINANCIAL OFFICERS EASTMAN KODAK CO HAS PLENTY OF COMPANY IN ITS SEARCH FOR A NEW CHIEF FINANCIAL OFFICER TO REPLACE CHRISTOPHER J STEFFEN WHO QUIT LATE TUESDAY AS THE DRIVE TO DOWNSIZE CONTINUES MORE CORPORATIONS ARE LOOKING OUTSIDE FOR SAVVY EXECUTIVES TO FILL THEIR TOP FINANCIAL POSTS IN SOME CASES EXECUTIVE RECRUITERS SAY A NEW CHIEF EXECUTIVE OFFICER HIRED TO TURN THINGS AROUND WANTS TO STRENGTHEN THE CFO ROLE WITH NEW BLOOD INTERNATIONAL BUSINESS MACHINES CORP HAS BEEN SEARCHING FOR A NEW CFO SINCE FRANK METZ WAS PUSHED INTO EARLY RETIREMENT IN JANUARY'S PURGE OF TOP EXECUTIVES EARLIER THIS WEEK XEROX CORP RECRUITED AN OUTSIDER AS CFO FOR THE FIRST TIME PLUCKING 49YEAROLD BARRY D ROMERIL FROM BRITISH TELECOMMUNICATIONS PLC WHERE HE LED PAINFUL COST CUTTING SEVERAL OTHER BIG US CONCERNS ARE ALSO QUIETLY HUNTING FOR NEW CHIEF FINANCIAL OFFICERS PAUL R RAY & CO AN EXECUTIVESEARCH FIRM IN FORT WORTH TEXAS SAYS IT IS HANDLING NINE CFO SEARCHES FOR MAJOR PHARMACEUTICAL TELECOMMUNICATIONS AND CONSUMERPRODUCT COMPANIES THERE IS A LOT OF FOCUS ON FINANCIAL FIXES AND A LOT OF NEED TO BRING NEW FINANCIAL THINKING INTO VARIOUS TROUBLED CORPORATIONS OBSERVES GLENN VAN DOREN PRESIDENT OF THE ASSOCIATION OF EXECUTIVE SEARCH CONSULTANTS THE NUMBER OF SEARCHES FOR CFOS ROSE 6 DURING 1992 TO JUST UNDER 400 MR VAN DOREN ADDS IT WAS ONE OF THE BIGGEST CATEGORIES OF GROWTH FOR THE ENTIRE YEAR BY CONTRAST HE SAYS THE NUMBER OF CEO SEARCHES HELD STEADY LAST YEAR CFO SEARCHES ALSO OUTPACED CEO SEARCHES DURING THE FIRST QUARTER BUT AS KODAK DISCOVERED RECRUITING AN OUTSIDE CFO POSES CONSIDERABLE RISKS MR STEFFEN WAS HIRED BECAUSE KODAK DIRECTORS INSISTED ON AN OUTSIDER AS CFO WHEN THE NEW EXECUTIVE TOOK STEPS TO RESTORE WALL STREET'S CONFIDENCE IN KODAK HE ENDED UP IN A POWER STRUGGLE WITH HIS BOSS CHAIRMAN KAY R WHITMORE YOU ALWAYS HOPE THE PEOPLE YOU BRING IN WILL ELEVATE THE STRATEGIC THINKING IN A CORPORATION BUT YOU NEVER KNOW THEM AS WELL AS YOUR INTERNAL PEOPLE SAYS WILLIAM BUEHLER A XEROX SENIOR VICE PRESIDENT AND CHIEF STAFF OFFICER DURING THE SCREENING PROCESS HE NOTES YOU ALWAYS SEE THE BEST SIDE OF PEOPLE XEROX TOOK EXTRA STEPS TO MAKE SURE MR ROMERIL WAS RIGHT FOR THE POST IT USED A SCALE OF 23 LEADERSHIP ATTRIBUTES DEVELOPED FOR MANAGERIAL EVALUATIONS TO ASSESS EVERY INTERNAL AND EXTERNAL CANDIDATE FOR THE CFO JOB MR ROMERIL RANKED THE HIGHEST MR BUEHLER SAYS YET IT'S STILL A JUDGMENT CALL THERE'S ALWAYS A RISK IN BRINGING IN AN OUTSIDER IT'S OUR JOB TO MANAGE THAT RISK 9304300142 930430 BED BATH'S SALES GAIN SPRINGFIELD NJ BED BATH & BEYOND INC SAID SALES ROSE 36 TO 175 MILLION FROM 129 MILLION FOR THE FOUR WEEKS ENDED SUNDAY THE RETAILER OF DOMESTICS MERCHANDISE AND HOME FURNISHINGS SAID SAMESTORE SALES ROSE 53 9304300141 930430 OLIVETTI'S GROUP LOSS WIDENED LAST YEAR SALES UP IN 1ST PERIOD IVREA ITALY ING C OLIVETTI & CO SAID ITS CONSOLIDATED LOSS WIDENED TO 6499 BILLION LIRE 4436 MILLION IN 1992 FROM 4598 BILLION LIRE IN 1991 THE ITALIAN OFFICE EQUIPMENT MAKER DISCLOSED THE FINAL RESULTS AT THE ANNUAL SHAREHOLDERS' MEETING HERE THE 1992 RESULTS WEREN'T SUBSTANTIALLY DIFFERENT FROM THE PRELIMINARY RESULTS REPORTED IN MARCH OLIVETTI OFFICIALS SAID THAT SALES IN LIRA TERMS ROSE 55 IN THE FIRST QUARTER OF 1993 FROM A YEAR EARLIER BUT THEY DIDN'T DISCLOSE ANY ABSOLUTE REVENUE FIGURES IN TERMS OF VOLUME OLIVETTI SAID PERSONAL COMPUTER SALES IN EUROPE JUMPED 72 IN THE FIRST QUARTER FROM A YEAR EARLIER WHILE PRINTER SALES ROSE 42 OLIVETTI ALSO ANNOUNCED THAT DIGITAL EQUIPMENT CORP OF THE US HAD DECIDED THAT ITS PLAN TO INCREASE ITS STAKE IN OLIVETTI TO 10 WOULD BE MOVED UP TO NEXT MONTH FROM MID1994 AS PREVIOUSLY PLANNED DIGITAL ANNOUNCED LAST JUNE THAT IT WANTED TO BUILD UP A STAKE OF 10 IN OLIVETTI IN THREE STEPS BY 1994 AS PART OF A STRATEGIC ALLIANCE BETWEEN THE TWO COMPUTER MAKERS OLIVETTI ALSO SAID THAT DIGITAL WILL FULLY SUBSCRIBE ITS SHARE OF OLIVETTI'S PREVIOUSLY ANNOUNCED 903 BILLION LIRA RIGHTS ISSUE 9304300140 930430 THE FROM RUSSIA WITH LOVE BOAT ISN'T YOUR ORDINARY TOURIST DIVE BY NEELA BANERJEE STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW THE WAY VALERY SEMENKOV TELLS IT RUSSIA'S LATEST SUBMARINE MODEL IS MORE LOVE BOAT THAN RED OCTOBER FORMERLY A SOVIET SUBMARINE COMMANDER MR SEMENKOV NOW MARKETS THE HANDVIK A 32PASSENGER TOURIST SUBMERSIBLE MANUFACTURED BY RUSSIA'S SEVMASH FACTORY SEVMASH STILL BUILDS NUCLEAR SUBS FOR THE RUSSIAN NAVY BUT DEEP CUTS IN MILITARY SPENDING HAVE PROMPTED IT TO BRANCH INTO PEACEFUL SUBMARINES MR SEMENKOV SAYS THE SUB'S BIG SELLING POINT IS AMBIENCE A MARKETING BROCHURE PROMISES THAT EACH HANDVIK IS COMFORTABLE SUCH AS AN AIRLINER TO MR SEMENKOV THIS MEANS A BAR LOW LIGHTING AND THE CHANCE FOR BOY TO MEET GIRL EVERYONE WANTS TO BE UNDER THE SEA MR SEMENKOV SAYS A BIT DREAMILY WOULDN'T YOU HE ASKS A WESTERN JOURNALIST WITH A NICE MAN SITTING NEXT TO YOU SIPPING AMARETTO HANDVIK PASSENGERS MORE INTERESTED IN MARINE LIFE CAN PEER OUT THROUGH PORTHOLES ALONG THE 60FOOTLONG VESSEL A ROVING CAMERA OUTSIDE THE SUB DARTS INTO CAVES AND REEFS TO TRANSMIT A FISH'SEYE VIEW OF THE SURROUNDINGS TO TERMINALS ON BOARD THIS IS EVEN BETTER THAN A JACQUES COUSTEAU MOVIE SAYS MR SEMENKOV DESPITE THE HANDVIK'S 45 MILLION PRICE TAG MR SEMENKOV SAYS PROSPECTIVE BUYERS FROM SWEDEN TO SAUDI ARABIA ARE INTERESTED IN THE LATEST MODEL THE FIRST BOAT RENTED BY AN ITALIAN BUSINESSMAN FOR 85000 A YEAR IS TAKING TOURISTS AROUND THE WATERS OF ANTIGUA FOR 100 EACH THE PROBLEM WITH ANTIGUA IS THERE ARE VERY FEW PEOPLE MR SEMENKOV SAYS WE WOULD LIKE TO SEE THE HANDVIK IN LOS ANGELES WHILE TOURISTS MIGHT BE TEMPTED BY THE VESSEL'S NOVELTY SOME THINK THE SAFETY RECORD OF RUSSIAN SUBMARINES MAY KEEP PEOPLE FROM TAKING THE PLUNGE I MIGHT THINK TWICE BEFORE I WENT ON ONE OF THOSE SAYS TONY WATTS OF JANE'S INFORMATION GROUP LTD QUALITY ASSESSMENT ISN'T AS STRINGENT LITTLE THINGS MIGHT SLIP THROUGH THE HANDVIK HAS A DEBALLASTING SYSTEM DESIGNED TO AUTOMATICALLY PUSH THE SUB TO THE SURFACE IN AN EMERGENCY AND MR SEMENKOV GUARANTEES THAT THE HANDVIK'S ENGINES ARE BUILT FOR ETERNITY BUT EACH SUBMERSIBLE IS EQUIPPED WITH A BLACK BOX SIMILAR TO THOSE ON AIRPLANES JUST IN CASE ETERNITY COMES EARLY 9304300139 930430 THE AMERICAS TRADE WITH MEXICO IS A BOON FOR US WORKERS BY ROBERT B REICH JUST FIVE WEEKS AGO CANADA MEXICO AND THE US BEGAN NEGOTIATING SUPPLEMENTAL AGREEMENTS TO A TRADE PACT WHICH WILL IF CONSUMMATED IMPROVE THE LIVING STANDARDS OF WORKERS THROUGHOUT THE AMERICAS ITS BENEFITS NOTWITHSTANDING THE NORTH AMERICAN FREE TRADE AGREEMENT WILL BE A HARD SELL HERE IN THE US RECENT ECONOMIC TRENDS HAVE CHIPPED AWAY AT THE TRADITIONAL AMERICAN READINESS TO SEIZE THE CHALLENGE OF CHANGE ANXIETY ABOUT A LINGERING RECESSIONARY ENVIRONMENT HAS BEEN COMPOUNDED BY THE STAGNATION IN REAL WAGES DURING THE PAST 15 YEARS REAL EARNINGS OF NONSUPERVISORY WORKERS THE VAST MAJORITY HAVE DRIFTED DOWNWARD AND WHILE ADVANCING TECHNOLOGIES HAVE ERODED THE STEADY STURDY CERTAINTY OF MASS PRODUCTION GLOBAL TRADE AND INVESTMENT HAVE RENDERED ALL MARKETS LESS PREDICTABLE EVERYWHERE INDUSTRIES BUILT UPON ROCKHARD ECONOMIES OF SCALE ARE BEING REPLACED BY INDUSTRIES FOUNDED ON THE QUICKSAND OF RISK AND UNCERTAINTY WE ARE THUS CONFRONTED WITH A HIGHSTAKES CHOICE OF EITHER EMBRACING CHANGE OR RESISTING IT IN THIS NEW ECONOMY THOSE WHO CAN QUICKLY IDENTIFY AND SOLVE NEW PROBLEMS ARE AT A PREMIUM HIGHWAGE UNSKILLED AND SEMISKILLED MANUFACTURING JOBS MEANWHILE ARE GROWING SCARCER EVEN IF MILLIONS OF WORKERS IN DEVELOPING NATIONS WERE NOT EAGER TO DO THESE JOBS AT A FRACTION OF THE WAGES OF US WORKERS SUCH JOBS WOULD STILL BE VANISHING DOMESTIC COMPETITION WOULD DRIVE COMPANIES TO CUT COSTS BY INSTALLING ROBOTS COMPUTERINTEGRATED MANUFACTURING SYSTEMS OR OTHER MEANS OF REPLACING THE WORK OF UNSKILLED AMERICANS WITH MACHINERY THAT CAN BE PROGRAMMED TO DO MUCH THE SAME THING IT IS PERHAPS NATURAL UNDER THESE CIRCUMSTANCES FOR MANY IN THE US TO PROJECT THEIR ANXIETIES UPON SUPPOSED MENACES LURKING BEYOND OUR BORDERS THE WORLD IS CAST AS A VAST ZEROSUM GAME IN WHICH EITHER THEY WIN OR WE WIN BUT THE FACTS ARE QUITE THE OPPOSITE WORLD TRADE IS NOT A ZEROSUM GAME THERE IS NOT A FINITE NUMBER OF JOBS TO BE PARCELED OUT AMONG THE WORKERS OF THE WORLD TRADE IS A POSITIVESUM GAME IN WHICH ALL PARTIES STAND TO GAIN AND THERE IS NO NATURAL LIMIT TO THE NUMBER OF JOBS THAT CAN BE CREATED BY IT IN PARTICULAR US WORKERS HAVE LITTLE TO FEAR FROM NAFTA AND MUCH TO HOPE FOR THE US MARKET FOR MEXICAN PRODUCTS IS ALREADY LARGELY OPEN US TARIFFS ON MEXICAN EXPORTS AVERAGE JUST 4 CUSTOMS DUTIES ON MERCHANDISE ASSEMBLED WITH USMADE COMPONENTS IN MAQUILADORAS ARE CHARGED ONLY ON VALUE ADDED IN MEXICO WHICH TYPICALLY IS ABOUT ONEHALF OF THE COST OF THE PRODUCT NAFTA DOESN'T SO MUCH OPEN THE US TO MEXICAN EXPORTS AS IT FURTHER OPENS MEXICO TO US EXPORTS PRESIDENT CARLOS SALINAS DE GOTARI AND HIS PREDECESSOR HAVE OPENED MEXICO PART WAY AND THE RESULTS HAVE BEEN HUGELY BENEFICIAL NORTH AS WELL AS SOUTH OF THE BORDER SINCE 1988 USMEXICAN TRADE HAS NEARLY DOUBLED TO 76 BILLION A YEAR WITH BOOMING US EXPORTS ACCOUNTING FOR MUCH OF THE INCREASE IN THE PAST SEVEN YEARS OUR MERCHANDISE TRADE BALANCE WITH MEXICO HAS IMPROVED BY 10 BILLION IN 1991 THE US RAN A TRADE SURPLUS WITH MEXICO FOR THE FIRST TIME IN NEARLY A DECADE LAST YEAR THE SURPLUS SWELLED TO 55 BILLION AND IT KEEPS GROWING BUT RESTRICTIONS REMAIN MEXICAN TARIFFS ON US GOODS ARE MORE THAN TWICE AS HIGH ON AVERAGE AS US TARIFFS ON MEXICAN GOODS OTHER BARRIERS TO US EXPORTS ALSO REMAIN SUBSTANTIAL FOR EXAMPLE NONMEXICAN AUTO MAKERS MUST EXPORT 2 WORTH OF PRODUCTS FOR EVERY 1 WORTH OF CARS AND LIGHT TRUCKS THEY BRING IN CARS IMPORTED INTO MEXICO FACE A 20 TARIFF BY LIFTING SUCH BARRIERS OVER THE COMING DECADE NAFTA WOULD GIVE THE US AUTO MAKERS UNLIMITED ACCESS TO A MARKET THAT WILL GROW FAR FASTER THAN THE MARKET FOR AUTOMOBILES IN THE US TODAY ONLY ONE MEXICAN IN 16 OWNS A CAR ONE IN TWO US CITIZENS OWNS ONE BUT THROUGH MORE OPEN TRADE AND OTHER LIBERALIZING MEASURES MEXICAN INCOMES HAVE BEGUN TO RISE CAUSING GREATER DEMAND FOR US EXPORTS AND MORE JOB CREATION IN THE US WHAT OF THE US WORKERS WHO MAY LOSE THEIR JOBS BECAUSE OF NAFTA THOSE WORKING IN INDUSTRIES THAT HAVE BEEN MOST SHELTERED FROM COMPETITION WOULD FACE NO IMMEDIATE THREAT FOR THEM NAFTA WILL BE PHASED IN GRADUALLY IN ANY EVENT ANY SHIFT IN USBASED JOBS DUE TO NAFTA WILL AMOUNT TO JUST A TINY PORTION OF THE TOTAL NUMBER OF US WORKERS WHO MUST FIND NEW JOBS IN ANY GIVEN YEAR THE ADMINISTRATION IS SEEKING TO PROVIDE RETRAINING JOB SEARCH ASSISTANCE AND OTHER SERVICES TO ALL WORKERS WHO LOSE THEIR JOBS INCLUDING THOSE AFFECTED BY NAFTA DEFENSE DOWNSIZING AND OTHER MAJOR STRUCTURAL CHANGES JOB CREATION NORTH AND SOUTH OF THE BORDER WILL BE ONLY ONE POSITIVE RESULT OF NAFTA MUCH LARGER POTENTIAL BENEFITS COULD RESULT FROM THE PRODUCTIVITY GROWTH STIMULATED BY THIS AND THE SUPPLEMENTAL AGREEMENTS NOW BEING NEGOTIATED THESE AGREEMENTS WILL ENSURE THAT THE US MEXICO AND CANADA COMPETE WITH EACH OTHER BY RAISING PRODUCTIVITY QUALITY AND THE RATE OF INNOVATION NOT BY LOWERING LABOR AND ENVIRONMENTAL STANDARDS AFTER WORLD WAR II THE US HELPED FORGE A NEW WORLD ECONOMY BASED ON THE PRINCIPLE OF FREE TRADE WE CREATED AN INTERNATIONAL MONETARY FUND TO ENSURE LIQUIDITY A WORLD BANK TO AGGREGATE AND DIRECT DEVELOPMENT FINANCE AND A GENERAL AGREEMENT ON TARIFFS AND TRADE TO GUARANTEE THE OPEN TRADING SYSTEM THE YEARS BETWEEN 1945 AND 1970 PROVED THE WISDOM OF OUR WORK THESE 25 YEARS WITNESSED THE MOST DRAMATIC AND WIDELYSHARED ECONOMIC GROWTH IN THE HISTORY OF HUMANKIND THE US'S OWN GROSS NATIONAL PRODUCT GREW FROM 200 BILLION TO OVER 1 TRILLION EVEN ALLOWING FOR INFLATION US REAL INCOME MORE THAN DOUBLED AS THE REAL VALUE OF US TRADE WITH THE REST OF THE WORLD QUADRUPLED NAFTA IS A SMALL STEP DOWN THE SAME PATH MUCH CLOSER TO HOME THE CHALLENGES WE FACE TODAY ARE MORE COMPLEX PERHAPS BUT I AM CONVINCED THAT THE BASIC AMERICAN ATTITUDE OF OPTIMISM AND DETERMINATION REMAINS THE SAME IT WOULD BE SADLY IRONIC IF THE ECONOMIC STRESSES NOW EXPERIENCED BY MANY AMERICANS PREVENTED US FROM ENJOYING THE ECONOMIC BENEFITS THAT LIE JUST AROUND THE CORNER MR REICH IS US SECRETARY OF LABOR THESE REMARKS WERE DRAWN FROM AN ADDRESS YESTERDAY TO THE INTERNATIONAL LAW SECTION OF THE AMERICAN BAR ASSOCIATION 9304300138 930430 INTERNATIONAL FIAT CHIEF OFFERS DETAILS OF BRIBES PAID TO POLITICIANS BY MAUREEN KLINE SPECIAL TO THE WALL STREET JOURNAL MILAN FIAT SPA CHIEF EXECUTIVE OFFICER CESARE ROMITI REPORTEDLY ADMITTED DETAILS OF KICKBACKS PAID TO POLITICIANS BY THE ITALIAN AUTO GIANT AND SAID THE CORRUPTION SCANDAL IS DAMAGING THE COMPANY'S BUSINESS PROSPECTS ABROAD IN A DEPOSITION TO MILAN JUDGES WIDELY LEAKED TO THE NEWS MEDIA MR ROMITI SAID FIAT PAID BRIBES TO POLITICIANS ON A SERIES OF PUBLICWORKS CONTRACTS INCLUDING STATE RAILWAY ORDERS TELEPHONE SERVICES FOREIGNAID PROJECTS AND A HOSPITAL FOR AIDS VICTIMS HE ALSO REPORTEDLY GAVE JUDGES THE NAMES OF FIAT MANAGERS INVOLVED AND DESCRIBED A MEETING AT WHICH CHAIRMAN GIANNI AGNELLI TOLD MANAGERS THE COMPANY WOULD DRAW UP NEW ETHICS CODES IN ORDER TO PUT THE CORRUPTION SCANDAL BEHIND IT MR ROMITI ALSO REPORTEDLY REFERRED TO CONTACTS WITH PROSPECTIVE FOREIGN PARTNERS IN THE MEMORANDUM SAYING OUR GROUP LIKE OTHERS IN THESE TIMES HAS HAD IMPORTANT INTERNATIONAL CONTACTS WHICH RISK NOT BEING FEASIBLE DUE TO THE EFFECTS OF THE JUDICIAL INVESTIGATION DESPITE THE EVERWIDENING ITALIAN CORRUPTION SCANDAL FIAT SHARES HAVE BEEN STRONG FOR THE LAST TWO MONTHS ON THE MILAN EXCHANGE BUT THAT'S MORE A REFLECTION OF PERSISTENT RUMORS ALWAYS DENIED THAT THE COMPANY IS SET TO ANNOUNCE A STRATEGIC ACCORD WITH RENAULT SA OF FRANCE LAST NIGHT A SPOKESMAN FOR FIAT IN TURIN ITALY SAID THE COMPANY HAD NO COMMENT ON THE DEPOSITION MR AGNELLI WAS DESCRIBED IN THE LEAKED MEMO AS TELLING THE FIAT MANAGERS THAT IN THE FUTURE NEW BEHAVIORAL CODES INSPIRED BY THOSE IN USE AT IBM AND GENERAL ELECTRIC WILL BE APPLIED TO RELATIONS WITH THE PUBLIC ADMINISTRATION AND AN AD HOC COMMITTEE WILL BE SET UP TO DETERMINE THE GROUP'S ORIENTATION THE LEAKS IN THE NEWS MEDIA APPEAR TO CONFIRM FIAT'S POLICY OF COOPERATING WITH MAGISTRATES INVESTIGATING POLITICAL CORRUPTION THROUGHOUT ITALY TWO TOP FIAT MANAGERS FOR WHOM ARREST WARRANTS HAD BEEN ISSUED RETURNED TO ITALY FROM ABROAD YESTERDAY AND APPEARED FOR QUESTIONING THE TWO GIORGIO GARUZZO CHIEF OPERATING OFFICER OF FIAT AND PAOLO TORRICELLI CHIEF EXECUTIVE OF FIAT AVIO THE COMPANY'S AUTO TURBINE UNIT WERE QUESTIONED AT LENGTH AND THEN PLACED UNDER HOUSE ARREST AT A NEWS CONFERENCE TOP MILAN MAGISTRATE FRANCESCO SAVERIO BORRELLI COMMENTING ON FIAT'S DECISION TO ACTIVELY COOPERATE WITH THE INVESTIGATORS SAID THE FIAT GROUP RESOLVED TO APPROACH MAGISTRATES ONLY NOW BECAUSE ONLY NOW THEY REALIZED THAT THE INVESTIGATION WASN'T GOING TO RUN AGROUND IF THEY HAD DONE SO SOONER IF THEY HAD HAD MORE FORESIGHT THEY WOULD HAVE SAVED THEMSELVES DAYS SPENT IN PRISON IN ANY CASE HE ADDED MANAGEMENT IS SHOWING ITS WILL TO COOPERATE IN A SEPARATE DEVELOPMENT THE MANAGING DIRECTOR OF CONSTRUCTION SUBSIDIARY FIAT IMPRESIT UGO MONTEVECCHI REPORTEDLY GAVE MILAN JUDGES NAMES OF VARIOUS POLITICIANS TO WHOM HE HAD PAID KICKBACKS AMONG THE POLITICIANS NAMED WAS SALVO LIMA A LEADING SICILIAN CHRISTIAN DEMOCRAT MURDERED LAST YEAR WHO IS SUSPECTED OF HAVING ACTED AS A LINK BETWEEN THE MAFIA AND POLITICIANS IN ROME 9304300137 930430 UK INSURER SEES BIG LOSS IN LONDON TERROR BOMBING LONDON UK INSURER COMMERCIAL UNION PLC SAID LOSSES ON CLAIMS FROM SATURDAY'S TERRORIST BOMBING IN LONDON'S FINANCIAL DISTRICT ARE UNLIKELY TO EXCEED 25 MILLION 395 MILLION AFTER REINSURANCE COMMERCIAL UNION SAID IT WOULD SHOW THE LOSS IN ITS SECONDQUARTER ACCOUNTS COMMERCIAL UNION WAS THE LEAD INSURER ON THE NATWEST TOWER AND THE HONGKONG & SHANGHAI BANK BUILDING WHICH HAD THE MOST DAMAGE THE INSURER SAID INFORMATION ON POSSIBLE LOSSES IS INCOMPLETE ESTIMATES ON THE DAMAGE CAUSED BY THE EXPLOSION NEAR THE LONDON STOCK EXCHANGE RANGE FROM 300 MILLION TO 1 BILLION DEPENDING ON WHETHER THE HONGKONG & SHANGHAI BANK BUILDING MUST BE DEMOLISHED THE UK GOVERNMENT HAS PLEDGED TO MEET EXCESS REINSURANCE CLAIMS 9304300136 930430 CORPORATE FOCUS EDGY PEACE FOLLOWS NASTY BATTLE OVER SOUTHDOWN INC PROXY FIGHT IS AVERTED BUT QUESTIONS ARISE OVER CONCERN'S SAGGING FORTUNES BY ANDREA GERLIN STAFF REPORTER OF THE WALL STREET JOURNAL PEACE HAS BROKEN OUT AT SOUTHDOWN INC BUT IT MAY BE A TEMPORARY CONDITION A SURPRISE SETTLEMENT BETWEEN THE COMPANY AND RICHARD C BLUM & ASSOCIATES INC THE SAN FRANCISCOBASED FINANCIAL ADVISER THAT CONTROLS A 147 SOUTHDOWN STAKE OWNED BY THE CARPENTERS PENSION TRUST FOR SOUTHERN CALIFORNIA AVERTED A PROXY FIGHT BY EXPANDING THE BOARD TO 12 MEMBERS FROM NINE THAT MADE ROOM FOR BOTH SIDES' NOMINEES FOR THE THREE SEATS UP FOR GRABS AT THE MAY 20 ANNUAL MEETING BUT THE HOUSTONBASED MAKER OF CEMENT AND CONCRETE PRODUCTS IS PLAGUED BY LOSSES ITS STOCK PRICE IS IN A SWOON AND AFTER A BRIEF BUT UGLY SPAT RELATIONS BETWEEN THE TWO SIDES REMAIN TOUCHY THE BLUM GROUP PROMISES TO CONTINUE PUSHING FOR CHANGE ALL OF THE ISSUES WE THOUGHT WERE SIGNIFICANT WILL NOW BE BROUGHT UP AT THE BOARD LEVEL SAYS RONALD N TUTOR A COCHAIRMAN OF THE TRUST AND ITS LONE REPRESENTATIVE ON THE SOUTHDOWN BOARD MEANWHILE COMPANY MANAGEMENT INSISTS IT WILL CONTINUE PURSUING ITS STRATEGY WHEN TIMES GET TOUGH SOME COMPANIES MAY REFLEXIVELY SHIFT THE BLAME FOR POOR PERFORMANCE TO THE ECONOMY WHETHER OR NOT THE ECONOMY IS TO BLAME THE SOUTHDOWN DISSIDENTS DON'T ACCEPT THAT AS THE SOLE EXPLANATION AND THINK MANAGEMENT IS AT LEAST PARTLY TO BLAME UNHAPPY WITH SOUTHDOWN'S PERFORMANCE AND AN APPROXIMATE 29 LOSS IN ITS INVESTMENT THE GROUP LAUNCHED A REVOLT LAST MONTH AFTER THE COMPANY REFUSED TO RENOMINATE MR TUTOR AND THE SEVEN DAYS BETWEEN THE BLUM GROUP'S ANNOUNCEMENT OF THE PROXY FIGHT AND APRIL 16 SETTLEMENT WERE FILLED WITH BARBS FROM BOTH SIDES INCLUDING A LAWSUIT SINCE WITHDRAWN BY SOUTHDOWN CHARGING THAT THE DISSIDENTS ILLEGALLY CONCEALED THEIR INTENTION TO SEIZE CONTROL OF THE COMPANY MUCH OF THE BITTERNESS COULD BE WASHED AWAY BY A REVIVAL OF SOUTHDOWN'S SAGGING FORTUNES AFTER POSTING RECORD PROFIT IN 1988 AND 1989 IT HAS ACCUMULATED 852 MILLION OF LOSSES IN THE LAST TWO YEARS AND HASN'T PAID A DIVIDEND SINCE EARLY 1991 BETTING ON A REVIVAL OF THE CONSTRUCTION INDUSTRY THE 13 BILLION CARPENTERS PENSION TRUST BOUGHT ITS 2520000SHARE STAKE IN SOUTHDOWN IN 1991 FOR 1213 TO 1850 A SHARE WE BASICALLY BOUGHT IT AS AN UNDERVALUED COMPANY BLUM SPOKESMAN COLIN LIND SAYS YESTERDAY SOUTHDOWN CLOSED AT 1150 IN NEW YORK STOCK EXCHANGE TRADING MEANING THAT THE TRUST HAS LOST ON PAPER 118 MILLION OF ITS 408 MILLION INVESTMENT ANALYSTS SAY SOUTHDOWN'S FUTURE IS TIED TO AN ECONOMIC REBOUND AND PREDICT A LOSS AS HIGH AS 50 CENTS A SHARE IN 1993 WHILE THAT IS DOWN SHARPLY FROM 269 A SHARE IN 1992 IT'S HARDLY CAUSE FOR CELEBRATION THE COMPANY IS WHAT IT'S GOING TO BE FOR THE NEXT TWO THREE OR FOUR YEARS SAYS JOHN STANLEY AN ANALYST AT DILLON READ & CO IN NEW YORK THE COMPANY BLAMES ITS WOEFUL PERFORMANCE ON THE RECENT ECONOMIC SLOWDOWN NOTING THAT MOST OF ITS MAJOR COMPETITORS ALSO HAVE SUFFERED ACTUALLY SOUTHDOWN'S CEMENT BUSINESS HAS BEEN SOLIDLY PROFITABLE THE LAST TWO YEARS BUT ITS CONCRETE BUSINESS CENTERED PRIMARILY IN HARDHIT NORTHERN FLORIDA AND SOUTHERN CALIFORNIA HAS BEEN A MONEY LOSER A MAJOR PROBLEM HAS BEEN THE HAZARDOUSWASTE BUSINESS WHICH THE COMPANY ENTERED IN 1990 BUYING SEVEN WASTE PROCESSORS FOR 463 MILLION IN 1991 AND 1992 SOUTHDOWN POSTED CUMULATIVE LOSSES BEFORE TAXES AND INTEREST EXPENSE OF 364 MILLION FROM THOSE OPERATIONS LARGELY BECAUSE OF COSTLY DELAYS IN OBTAINING BURNING PERMITS THE BLUM GROUP HASN'T BEEN HAPPY ABOUT SOUTHDOWN'S FORAY INTO A BUSINESS THAT PROMISES ENVIRONMENTAL HEADACHES THEY WERE LESS HAPPY WHEN SOUTHDOWN PUT SOME OF ITS PROFITABLE CORE CEMENT ASSETS ON THE BLOCK LAST YEAR TO OFFSET LOSSES FROM THE HAZARDOUSWASTE OPERATIONS SOUTHDOWN SPOKESMAN JAMES PERSKY SAYS THE COMPANY HAS TABLED A PLAN TO SELL UP TO 50 OF EITHER ITS SOUTHERN CALIFORNIA OR FLORIDA CEMENT AND CONCRETE PRODUCTS OPERATIONS THE COMPANY HAS SOLD TWO WASTE PROCESSORS AND PLANS TO SELL THREE MORE TO PAY DOWN SOME OF ITS 325 MILLION IN LONGTERM DEBT MR PERSKY INSISTS THAT HAZARDOUS WASTE IS A LONGTERM INVESTMENT THAT SHOULD SOON PROVE PROFITABLE MR STANLEY THE DILLON READ ANALYST SAYS THAT BUSINESS SHOULD BE HEADING TOWARD BREAKEVEN AND COULD PERHAPS BECOME PROFITABLE IF SOUTHDOWN CAN OBTAIN THE PERMITS BUT THE DISSIDENTS AREN'T SO SURE THE BLUM DIRECTORS ARE ALSO LIKELY TO PUSH SOUTHDOWN TO PARE EXPENSES AT ITS HEADQUARTERS THE COMPANY HAS BEEN CENTRALIZING MANAGEMENT WHICH CHAIRMAN G WALTER LOEWENBAUM II SAYS HAS REDUCED COSTS AND ALSO REDUCED SOUTHDOWN'S WORK FORCE BY 18 IN THREE YEARS BUT MR LIND SAYS THE CENTRALIZATION HAS INCREASED THE HOUSTON WORK FORCE CAUSING CORPORATE GENERAL AND ADMINISTRATIVE EXPENSES TO NEARLY DOUBLE TO 327 MILLION IN 1992 FROM 174 MILLION IN 1988 MR LOEWENBAUM'S FATE COULD BE ANOTHER BOARD FLASHPOINT THE DISSIDENTS HAVE CONTENDED THAT AS AN OUTSIDE DIRECTOR HE WAS OVERCOMPENSATED AT 250000 A YEAR IN 1991 AND 1992 PARTICULARLY GRATING CONSIDERING THE COMPANY'S DISMAL EARNINGS PERFORMANCE OF LATE FURTHER MR LIND CONTENDS SOUTHDOWN PAID 49 MILLION IN INVESTMENT BANKING FEES DURING THE PAST SIX YEARS TO SOUTHCOAST CAPITAL CORP WHOSE PRESIDENT AND CHAIRMAN IS MR LOEWENBAUM AND TO MR LOEWENBAUM'S OLD FIRM MORGAN KEEGAN & CO DURING THAT PERIOD MR LIND NOTES THE COMPANY'S CUMULATIVE EARNINGS FROM CONTINUING OPERATIONS WERE JUST 55 MILLION MR LOEWENBAUM NOTES THAT HE RAISED 255 MILLION OF FINANCING FOR THE COMPANY FOR WHICH 49 MILLION IN FEES ISN'T UNUSUAL WILL THE BLUM DIRECTORS SEEK MR LOEWENBAUM'S REMOVAL CLARENCE COMER SOUTHDOWN'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAYS THAT AT A MEETING BEFORE THE SETTLEMENT MESSRS BLUM AND TUTOR DEMANDED HE REPLACE MR LOEWENBAUM AS CHAIRMAN SO THEY COULD INSTALL THEIR OWN PRESIDENT TO RUN THE COMPANY BUT MR LIND SAYS MR LOEWENBAUM'S OUSTER WAS NOT AN AGENDA ITEM IN THE NEGOTIATIONS BOTH SIDES SAY THE NEW BOARD WILL NAME A CHAIRMAN AND MR LOEWENBAUM THROUGH A COMPANY SPOKESWOMAN SAYS HE WOULD LIKE TO RETAIN THE POST STEVEN WOLITZER MANAGING DIRECTOR OF LEHMAN BROTHERS IN NEW YORK AND ONE OF THE BLUM NOMINEES SAYS MR LOEWENBAUM'S ROLE COULD CONCEIVABLY BE A TOPIC OF BOARD DISCUSSION ONE ANALYST WHO DECLINED TO BE IDENTIFIED SAYS IF THEY'RE LOOKING FOR A SCAPEGOAT HE'S PROBABLY THE GUY DESPITE THE HISTORY OF ANIMOSITY THOUGH BOTH SIDES SAY THEY ARE SATISFIED WITH THE NEW BOARD ARRANGEMENT AND WANT TO BE CONSTRUCTIVE HOW LONG THE GOOD VIBES LAST IS ANOTHER QUESTION BOTH MR BLUM AND I WERE ACCUSED OF EVERYTHING SHORT OF MASS MURDER MR TUTOR SAYS BLUNTLY WILL I FORGET IT NO IT'LL NEVER HAPPEN 9304300135 930430 HICKS MUSE AND UNIT SEEK COURT INJUNCTION TO HALT APOLLO ACTION DALLAS HEALTHCO INTERNATIONAL INC AND HICKS MUSE & CO SAID THEY ARE SEEKING AN INJUNCTION IN A TEXAS STATE COURT TO PREVENT APOLLO ADVISORS LP FROM INTERFERING WITH HEALTHCO'S EFFORT TO OBTAIN 15 MILLION IN FINANCING IN ITS ACTION HEALTHCO WHICH WAS ACQUIRED BY HICKS MUSE IN 1991 ALLEGED THAT APOLLO IS CONTACTING POTENTIAL LENDERS AND THREATENING TO STIR UP ADVERSE PUBLICITY AND FILE LITIGATION IF HEALTHCO ARRANGED NEW FINANCING THAT DIDN'T RESULT IN APOLLO CONTROLLING THE DENTAL EQUIPMENT SUPPLIER HEALTHCO IN BOSTON WAS SEEKING FUNDING FOR WORKING CAPITAL PURPOSES RELATED TO THE SEASONAL NATURE OF THE DENTAL SUPPLY BUSINESS AND CONTACTED SEVERAL POSSIBLE LENDERS INCLUDING APOLLO A PRIVATE INVESTMENT ADVISORY FIRM IN NEW YORK AND LOS ANGELES HEALTHCO SAID APOLLO'S FINANCING PROPOSAL INCLUDED A NUMBER OF ONEROUS CONDITIONS INCLUDING RELINQUISHING CONTROL OF THE COMPANY AND ELIMINATING OTHER OWNERS' INTERESTS SO THE COMPANY ARRANGED THE LOAN FROM AN ALTERNATIVE LENDER HEALTHCO SAID IN ITS ACTION THAT IT SOUGHT TO PREVENT APOLLO FROM OBSTRUCTING AND PREVENTING THE NEW FINANCING THE SUIT NAMES AS DEFENDANTS APOLLO AND THREE AFFILIATES CONTROLLED BY FORMER DREXEL BURNHAM LAMBERT EXECUTIVES LED BY LEON BLACK MR BLACK ONCE HEADED DREXEL'S MERGERS AND ACQUISITIONS DEPARTMENT BRUCE MENDELSOHN AN ATTORNEY FOR APOLLO SAID THE TRANSACTION BEING CONTEMPLATED BY HEALTHCO WOULD APPEAR TO VIOLATE VARIOUS COVENANTS OF THE COMPANY'S LOAN AGREEMENTS WE HAVE TOLD HICKS MUSE THAT IF THEY PUT IN MONEY THAT WAS NOT IN VIOLATION OR BREACH OF ANY AGREEMENTS THAT WE HAD NO INTENTION OF TAKING CONTROL MR MENDELSOHN SAID APOLLO AND ITS AFFILIATES TOGETHER CONTROL ABOUT 11 OF THE COMMON STOCK OF HEALTHCO'S PARENT COMPANY HEALTHCO HOLDING CORP AND ABOUT 44 OF THE SUBORDINATED DEBT OF HEALTHCO INTERNATIONAL HICKS MUSE IS A PRIVATE INVESTMENT FIRM THAT OWNS 70 OF HEALTHCO HOLDING'S COMMON STOCK AND ABOUT 20 OF THE SUBORDINATED DEBT OF HEALTHCO INTERNATIONAL 9304300134 930430 US TO INVESTIGATE FITNESS OF LORENZO'S NEW AIRLINE TO FLY BY BRUCE INGERSOLL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE TRANSPORTATION DEPARTMENT INTENDS TO INVESTIGATE WHETHER FRANK LORENZO'S FLEDGLING FRIENDSHIP AIRLINES IS FIT TO FLY IN AN UNUSAL MOVE THE DEPARTMENT SAID IT WILL HOLD ADMINISTRATIVE HEARINGS TO DETERMINE WHETHER FRIENDSHIP HAS WHAT IT TAKES TO GET AN OPERATING CERTIFICATEMANAGEMENT EXERTISE AND A DISPOSITION TO COMPLY WITH AVIATION REGULATIONS AND LAWS LAST YEAR 15 AIRLINES WERE GRANTED CERTIFICATES WITHOUT HEARINGS AS PART OF THE DEPARTMENT'S POLICY OF ENCOURAGING ENTRANTS A HEARING DATE HASN'T BEEN SET THE HEARINGS BEFORE AN ADMINISTRATIVE LAW JUDGE WILL ALLOW LABOR UNIONS MEMBERS OF CONGRESS AND OTHERS TO VOICE THEIR OPPOSITION TO MR LORENZO'S PLANS TO START UP A WASHINGTONBASED AIRLINE SERVING SHORTHAUL AND MEDIUMHAUL EAST COAST MARKETS MR LORENZO AND HIS SUPPORTERS WILL ALSO HAVE THEIR SAY FOR MR LORENZO FRIENDSHIP AIRLINES WOULD BE QUITE A COMEDOWN FROM HIS HEYDAY AS CHAIRMAN OF TEXAS AIR CORP WHEN HE ONCE CONTROLLED NEARLY 25 OF ALL DOMESTIC AIRLINE SEATS FRIENDSHIP'S APPLICATION ALREADY HAS TRIGGERED A SLEW OF HOSTILE COMMENTS FROM THE AIR LINE PILOTS ASSOCIATION AND OTHER OPPONENTS MANY OF WHOM REGARD THE FORMER TEXAS AIR CHAIRMAN AS A PARIAH OF COMMERCIAL AVIATION LAST MONTH ASSOCIATION PRESIDENT J RANDOLPH BABBITT DENOUNCED MR LORENZO AS HAVING A LONG HISTORY OF FAILED AIRLINES MARKED BY A TRAIL OF UNPAID DEBTS EMPTY AIRLINE GATES STRAINED GOVERNMENT TREASURIES DISAPPOINTED CONSUMERS LOST JOBS AND ECONOMIC DEVASTATION MORE THAN 20 LAWMAKERS INCLUDING REP JAMES OBERSTAR D MINN CHAIRMAN OF THE HOUSE AVIATION SUBCOMMITTEE HAVE URGED TRANSPORTATION SECRETARY FEDERICO PENA TO REJECT THE APPLICATION WE WELCOME THE HEARING SAID A SPOKESMAN FOR FRIENDSHIP AIRLINES WE'RE CONFIDENT THAT AN EXAMINATION OF OUR PLAN TO PROVIDE NEW COMPETITION NEW JOBS AND LOW FARES WITH AN EXPERIENCED MANAGEMENT TEAM WILL RECEIVE A THOROUGH REVIEW AND A QUICK APPROVAL MR LORENZO CONTROLS 77 OF FRIENDSHIP'S VOTING STOCK ACCORDING TO THE DEPARTMENT HE WILL SERVE ON THE BOARD BUT WON'T BE INVOLVED IN DAYTODAY OPERATIONS STEPHEN KOLSKI PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE STARTUP AND OTHER EXECUTIVES WHO PREVIOUSLY WORKED FOR MR LORENZO ARE MINORITY SHAREHOLDERS 9304300133 930430 BUSINESS BRIEF AIG REPORTS STRONG 1STQUARTER NET SPARKING RALLY IN SOME INSURER STOCKS NEW YORK AMERICAN INTERNATIONAL GROUP INC REPORTED SURPRISINGLY STRONG FIRSTQUARTER EARNINGS SPARKING A RALLY IN PROPERTY AND CASUALTY INSURANCE STOCKS AIG THE NATION'S LARGEST INVESTOROWNED INSURANCE COMPANY REPORTED NET INCOME OF 4959 MILLION OR 234 A SHARE A 128 INCREASE FROM THE YEAREARLIER QUARTER ANALYSTS SAID THEY WERE STRUCK BY AIG'S IMPROVED UNDERWRITING RESULTS AND ITS STRONG GROWTH IN PREMIUMS THEY'RE GETTING BETTER PRICING ON PROPERTY INSURANCE SAID SG WARBURG SECURITIES ANALYST JEFFREY COHEN THE POSITIVE RESULTS AT AIG HELPED REVERSE WHAT HAD BEEN A BAD WEEK FOR PROPERTY AND CASUALTY INSURANCE STOCKS LATE IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY AIG ROSE TO 12450 UP 450 OTHER PROPERTY AND CASUALTY INSURERS THAT FARED WELL WERE CHUBB CORP WHICH ROSE 125 TO 8875 AND GENERAL RE CORP AT 11650 UP 375 THE STOCKS FELL EARLIER IN THE WEEK BECAUSE OF CONCERNS ABOUT RISING INTEREST RATES SOME OF THE SAME PEOPLE WHO BAILED OUT EARLIER IN THE WEEK PROBABLY CAME BACK IN SAID LEHMAN BROTHERS ANALYST GLORIA VOGEL AIG REPORTED OPERATING EARNINGS NET OF CAPITAL GAINS AND ACCOUNTING ADJUSTMENTS OF 213 A SHARE VS 183 IN THE YEAREARLIER QUARTER ANALYSTS HAD BEEN EXPECTING NO MORE THAN 205 A SHARE PRUDENTIAL SECURITIES ANALYST G ALAN ZIMMERMANN SAID HE WAS ENCOURAGED BY THE 8 INCREASE IN PREMIUMS IN AIG'S PROPERTY AND CASUALTY INSURANCE BUSINESS THE NUMBERS SHOW THAT POSITIVE TRENDS ARE EMERGING IN PROPERTY AND CASUALTY HE SAID OVERALL REVENUE INCREASED 64 TO 464 BILLION AIG'S UNDERWRITING RESULTS ALSO IMPROVED THE COMPANY'S COMBINED RATIO WHICH MEASURES THE RELATIONSHIP BETWEEN PREMIUMS AND CLAIMS AND EXPENSES FELL TO 9956 FROM 10008 LAST YEAR DESPITE LOSSES FROM THE WORLD TRADE CENTER EXPLOSION AND THE BLIZZARD THAT HIT THE EAST COAST IN MARCH EACH OF AIG'S BUSINESS LINES REPORTED STRONGER RESULTS AIG GAVE NO INDICATION OF THE ARRIVAL OF A FULLFLEDGED TURN IN THE UNDERWRITING CYCLE THAT HAS DRIVEN DOWN INSURANCE COMPANY PROFITS BUT AIG CHAIRMAN MAURICE GREENBURG SAID THE COMPANY HAS WON HIGHER PRICING IN ITS PROPERTY INSURANCE LINES AND IN CERTAIN SEGMENTS OF ITS CASUALTY INSURANCE BUSINESS 9304300132 930430 WHO'S NEWS SALVATORI OPTHALMICS INC SALVATORI OPHTHALMICS INC SARASOTA FLA JOSEPH A ARENA 45 YEARS OLD WAS PROMOTED TO CHIEF EXECUTIVE OFFICER OF THIS MAKER OF CONTACT LENSES HE SUCCEEDS BONNIE LEETMMA 49 WHO RESIGNED IN FEBRUARY 1992 MR ARENA REMAINS CHIEF FINANCIAL OFFICER AND TREASURER ALSO ROBERT A SMART 52 WAS APPOINTED TO THE NEWLY CREATED POST OF VICE PRESIDENT OF OPERATIONS HE MOST RECENTLY SERVED AS DIRECTOR OF OPERATIONS 9304300131 930430 SUPERIOR INDUSTRIES GETS FORD JOB VAN NUYS CALIF SUPERIOR INDUSTRIES INTERNATIONAL INC SAID IT WON A FIVEYEAR CONTRACT FROM FORD MOTOR CO TO PRODUCE THREE ALUMINUM WHEEL MODELS FOR THE NORTH AMERICAN PRODUCTION OF FORD'S NEW MONDEO COMPACT CAR PROGRAM LOUIS L BORICK CHAIRMAN OF THE AUTOMOTIVE ACCESSORIES MAKER ESTIMATED THE VALUE OF THE CONTRACT AT 15 MILLION TO 20 MILLION A YEAR BEGINNING IN THE SECOND QUARTER OF 1994 9304300130 930430 TECHNOLOGY & HEALTH MCCAW CELLULAR'S LOSS NARROWED IN FIRST QUARTER BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL MCCAW CELLULAR COMMUNICATIONS INC REPORTED A SHARPLY NARROWED LOSS OF 14 MILLION OR SEVEN CENTS A SHARE IN THE FIRST QUARTER ON STRONG GROWTH IN CELLULAR SUBSCRIPTIONS THAT CONTINUED DESPITE A HIGHLY PUBLICIZED HEALTH SCARE ABOUT USE OF T HE PHONES THE LOSS COMPARES WITH A RESTATED LOSS OF 991 MILLION OR 56 CENTS A SHARE IN THE YEARAGO FIRST QUARTER REVENUE INCREASED 28 TO 480 MILLION FROM 3747 MILLION AS CASH FLOW IN MCCAW'S CELLULAR OPERATIONS SOARED 45 TO 1637 MILLION FROM 113 MILLION A YEAR AGO THE SUSTAINED GROWTH OF OUR INDUSTRY IS FURTHER EVIDENCE THAT WIRELESS IS BECOMING AN INTEGRAL PART OF OUR TELECOMMUNICATIONS INFRASTRUCTURE SAID CRAIG O MCCAW CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE 1992 QUARTERLY RESULTS WERE RESTATED TO REFLECT AN INCOMETAX ACCOUNTING CHANGE WHICH ALSO ADDED 58 MILLION OR FOUR CENTS A SHARE IN PROFIT TO THIS YEAR'S FIRSTQUARTER RESULTS WITHOUT THE ACCOUNTING CHANGE ANALYSTS HAD EXPECTED A HIGHER LOSS OF BETWEEN 24 CENTS AND 45 CENTS IN THE QUARTER THOUGH THE KIRKLAND WASH COMPANY HAS REPORTED STRONG GROWTH IN RECENT QUARTERS IT HAS POSTED A STRING OF LOSSES BECAUSE OF LARGE DEBT ACQUIRED TO EXPAND ITS CELLULARPHONE OPERATIONS WALL STREET REACTED POSITIVELY TO THE EARNINGS REPORT BOOSTING MCCAW'S STOCK 1 TO 3775 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY THE QUARTERLY RESULTS EASED INVESTORS' WORRIES THAT CELLULARPHONE SALES WOULD SUFFER IN THE QUARTER FOLLOWING A JANUARY REPORT OF A LAWSUIT BY A FLORIDA MAN WHO CHARGED THAT A CELLULAR PHONE CAUSED HIS WIFE'S FATAL BRAIN CANCER WHILE NO SCIENTIFIC EVIDENCE EXISTS TO LINK CELLULAR PHONE USE TO CANCER THE SCARE BATTERED CELLULAR TELEPHONE STOCKS MCCAW THE NATION'S LARGEST CELLULAR PHONE SERVICE COMPANY AND SOME OTHER INDUSTRY COMPANIES SENT LETTERS TO CUSTOMERS AIMED AT ASSUAGING ANY FEARS MCCAW ALSO COMMISSIONED A STUDY ON HOW CELLULAR PHONE ANTENNAS AFFECT USERS' EXPOSURE TO RADIO WAVES THE INDUSTRY WAS VERY CAREFUL TO MAKE SURE THAT PEOPLE COULD HAVE OPTIONS IF THEY WANTED OPTIONS SAID MCCAW SPOKESMAN TODD WOLFENBARGER THE DAMAGE CONTROL SEEMS TO HAVE WORKED DURING THE QUARTER THE NUMBER OF CELLULAR SUBSCRIBERS IN MARKETS MCCAW OWNS A CONTROLLING INTEREST COMBINED WITH SUBSCRIBERS IN MCCAWCONTROLLED LIN BROADCASTING CORP ROSE 31 TO 23 MILLION FROM 18 MILLION AT THE SAME TIME LAST YEAR A TOTAL OF ABOUT 100000 SUBSCRIBERS WERE ADDED IN THE FIRST QUARTER FROM THE FOURTH QUARTER MCCAW SAID SEPARATELY MCCAW REPORTED THAT IT SOLD ABOUT 145 MILLION NEWLY ISSUED SHARES OF CLASS A COMMON STOCK TO AMERICAN TELEPHONE & TELEGRAPH CO FOR 400 MILLION AS PART OF AT&T'S NEGOTIATED ATTEMPT TO GAIN A 33 STAKE FOR 373 BILLION AND ACQUIRE AN OPTION FOR VOTING CONTROL OF THE WIRELESS COMMUNICATIONS GIANT THOSE NEGOTIATIONS ARE CONTINUING 9304300129 930430 WELLS FARGO DEVELOPMENT LOANS SAN FRANCISCO WELLS FARGO BANK THE MAIN UNIT OF WELLS FARGO & CO SAID IT WOULD COMMIT 5 BILLION OVER THE NEXT DECADE TO FINANCE AFFORDABLE HOUSING ECONOMIC DEVELOPMENT AND LOANS TO LOWINCOME PEOPLE IN CALIFORNIA THE BANK SAID THE 5 BILLION FIGURE REPRESENTS A GOAL NOT A LIMIT IF IT MAKES GOOD BUSINESS SENSE WE'LL DO ALL THE BUSINESS WE CAN SAID WELLS FARGO CHAIRMAN CARL REICHARDT 9304300128 930430 LAW SUIT FILED AGAINST INSURERS ON LOS ANGELES RIOT CLAIMS LOS ANGELES TWO COMMUNITY LEGAL ORGANIZATIONS AND A LAW FIRM FILED A LAWSUIT ON BEHALF OF 118 SMALLBUSINESS OWNERS WHO WERE UNABLE TO COLLECT ON INSURANCE CLAIMS AFTER THE RIOTS HERE A YEAR AGO ABOUT 100 DEFENDANTS WERE NAMED IN THE CIVIL FRAUD SUIT INCLUDING ABOUT 10 INSURERS MOST OF WHICH ARE BASED IN THE CARIBBEAN AND ASSOCIATED INSURANCE AGENTS BROKERS AND ADJUSTERS THE INSURANCE COMPANY DEFENDANTS WEREN'T LICENSED TO SELL POLICIES DIRECTLY TO CUSTOMERS IN CALIFORNIA BUT WERE ABLE TO USE SPECIAL BROKERS TO MARKET THEIR PRODUCT TO HIGHRISK BUSINESSES THAT COULDN'T PURCHASE MORE CONVENTIONAL INSURANCE SOCALLED NONADMITTED INSURANCE COMPANIES HAVE BEEN THE FOCUS OF STATE AND FEDERAL CRIMINAL INVESTIGATIONS BECAUSE THEY ALLEGEDLY COLLECT PREMIUMS AND SHUT DOWN BEFORE PAYING LARGE CLAIMS THE DEFENDANTS' UNPAID CLAIMS IN THIS CASE TOTALED 15 MILLION THE SUIT IS APPARENTLY THE FIRST MAJOR ATTEMPT BY A COALITION OF PRIVATE AND PUBLICINTEREST LAW FIRMS TO ADDRESS THE PROBLEM THOUGH CIVIL LITIGATION REPRESENTATIVES OF THE INSURANCE FIRMS COULDN'T BE REACHED FOR COMMENT 9304300127 930430 WHO'S NEWS UNION CAMP CORP UNION CAMP CORP WAYNE NJ THIS PRODUCER OF PAPER PACKAGING MATERIAL AND CHEMICALS NAMED JAMES M REED 60 YEARS OLD VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER HE SUCCEEDS JOHN D MUNFORD 65 WHO RETIRED MR REED WHO WAS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER CONTINUES TO BE RESPONSIBLE FOR THE COMPANY'S FINANCIAL AND STRATEGIC PLANNING FUNCTIONS IN ADDITION TO THE FOREST RESOURCES GROUP AND THE BRANIGAR ORGANIZATION A REAL ESTATE DEVELOPMENT UNIT BOTH BASED IN SAVANNAH GA 9304300126 930430 FINANCING BUSINESS FOXMEYER CORP FOXMEYER CORP SAID IT COMPLETED ITS PRIVATE PLACEMENT OF 198 MILLION OF SENIOR NOTES AT A FIXED ANNUAL INTEREST RATE OF 709 WITH A GROUP OF INSURANCE COMPANIES IT DECLINED TO IDENTIFY THE DALLASBASED WHOLESALE DRUG DISTRIBUTOR SAID THE NOTES MATURE IN APRIL 2005 AND REQUIRE PRINCIPAL PREPAYMENTS AT THE END OF THE FIFTH THROUGH TWELFTH YEARS FOXMEYER SAID IT WILL USE PROCEEDS TO REPAY 120 MILLION OF A TERM LOAN FROM ITS ACQUISITION OF HARRIS WHOLESALE CO LAST YEAR AND TO REDUCE DEBT ON A CREDIT LINE THAT HAD A BALANCE OUTSTANDING OF 134 MILLION AS OF MARCH 31 9304300125 930430 WHO'S NEWS SEAGRAM CO LTD SEAGRAM CO LTD MONTREAL THIS GLOBAL PRODUCER AND MARKETER OF DISTILLED SPIRITS AND OTHER DRINKS NAMED WILLIAM P ROESING 46 YEARS OLD VICE PRESIDENT PUBLIC POLICY OF JOSEPH E SEAGRAM & SONS INC ITS US UNIT AND HEAD OF THE WASHINGTON OFFICE HE SUCCEEDS STEPHEN KOPLAN 57 WHO RESIGNED TO JOIN THE WASHINGTON LAW AND LOBBYING FIRM OF BAYH CONNAUGHTON FENSTERHEIN & MALONE MR ROESING MOST RECENTLY WAS PRESIDENT OF BETHESDA MDBASED CAMPAIGN PLANNING INC A CORPORATE AND POLITICAL COMMUNICATIONS AND STRATEGIC PLANNING FIRM THAT HE FOUNDED 9304300124 930430 SENTENCES ARE HANDED OUT IN PROBE OF MERC'S YEN PIT CHICAGO SEVENTEEN CURRENT AND FORMER TRADERS FROM THE CHICAGO MERCANTILE EXCHANGE WERE SENTENCED WEDNESDAY AND YESTERDAY TO TERMS RANGING FROM PROBATION TO FIVE MONTHS IN PRISON BRINGING TO A CLOSE A FOURYEAROLD FEDERAL PROBE OF THE MERC'S YEN PIT IN AUGUST 1989 THE US ATTORNEY'S OFFICE HERE INDICTED 21 YEN TRADERS ON CHARGES OF MAIL FRAUD WIRE FRAUD AND SECURITIESLAW VIOLATIONS THE FEDERAL BUREAU OF INVESTIGATION'S INQUIRY INCLUDED THE PLACEMENT OF AN UNDERCOVER AGENT WHO POSED AS A TRADER AND WORE A RECORDING DEVICE TO TAPE CONVERSATIONS WITH SEVERAL OF THE DEFENDANTS AT A 1990 TRIAL A FEDERAL JURY ACQUITTED TWO OF THE YENPIT DEFENDANTS THE JURY WAS HUNG ON COUNTS AGAINST 10 OTHERS THE GOVERNMENT HAD BEEN PREPARING TO RETRY THOSE 10 BUT THE DEFENDANTS INSTEAD PLEADED GUILTY TO LESSER CHARGES IN RECENT MONTHS ALSO SENTENCED IN THE TWODAY SESSION WERE SEVEN OF THE ORIGINAL 21 DEFENDANTS WHO HAD PLEADED GUILTY PREVIOUSLY AND HAD NEVER GONE TO TRIAL TWO OTHERS WHO PLEADED GUILTY WERE SENTENCED EARLIER THE FEDERAL INVESTIGATION OF THE MERC AND THE CHICAGO BOARD OF TRADE ALSO PRODUCED CHARGES AGAINST TRADERS IN A NUMBER OF OTHER TRADING PITS ONLY A HANDFUL OF DEFENDANTS REMAIN TO BE SENTENCED FROM THOSE TRIALS 9304300123 930430 REVIEW & OUTLOOK EDITORIAL MOST FAVORED NOTIONS IT'S SPRING IN WASHINGTON AND THAT MEANS IT'S TIME FOR FEVERS TO RUN HIGH OVER THAT WONDERFUL PHRASE MOST FAVORED NATION STATUS WE NOTE THE SAP RUNNING IN CONGRESSWOMAN NANCY PELOSI AND SENATOR GEORGE MITCHELL WHO INTRODUCED A BILL LAST WEEK TO IMPOSE REQUIREMENTS THAT CHINA MUST MEET TO MAINTAIN NORMAL TRADE TIES WITH THE US THES RANGE FROM CEASING TRADE PRACTICES THAT RESTRICT AND UNREASONABLY BURDEN AMERICAN BUSINESS TO HELPING ACCOUNT FOR US SERVICEMEN MISSING IN KOREA AND VIETNAM CHINA REACTED WITH PREDICTABLE DUDGEON THE RHETORIC SOUNDS FAMILIAR BUT THERE ARE TWO NEW PLAYERS THIS YEAR PRESIDENT BILL CLINTON AND HONG KONG GOVERNOR CHRIS PATTEN MR PATTEN ARRIVES IN WASHINGTON THIS WEEKEND TO LOBBY FOR UNCHANGED MFN STATUS FOR CHINA WE HOPE THE CLINTON ADMINISTRATION LISTENS CLOSELY MR PATTEN WILL TELL THEM THAT TRADE IS A TWOEDGED WEAPON AND THAT PROTECTIONISM ALWAYS ENDS UP HURTING THE PROTECTOR HE TOLD THE AMERICAN CHAMBER OF HONG KONG LAST WEEK YOU CANNOT CUT THE OTHER SIDE WITHOUT ALSO CUTTING YOURSELF TO REDUCE RESTRAIN OR THREATEN TRADE WITH ANOTHER COUNTRY IS INEVITABLY TO REDUCE YOUR COMMUNICATION WITH IT YOUR UNDERSTANDING OF IT AND YOUR INFLUENCE UPON IT MR PATTEN CAN ALSO BE EXPECTED TO ARGUE THAT CHANGING THE MAINLAND'S MFN STATUS WILL DEVASTATE HONG KONG HURT THE US AND RETARD LIBERALIZATION IN CHINA AS A POLITE AND GRACIOUS MAN HOWEVER MR PATTEN WILL NOT SAY WHAT WE WILL THE MFN BILL IS A MESS ITS PROVISIONS MAKE NO SENSE AND IT CANNOT BE ENFORCED FOR EXAMPLE IN THE SENATE VERSION THE HOUSE BILL IS MUCH THE SAME MFN SANCTIONS WOULD BE APPLIED ONLY TO STATEOWNED ENTERPRISES DEFINED AS THOSE WHOSE ASSETS ARE PRIMARILY OWNED BY A CENTRAL OR PROVINCIAL GOVERNMENT AUTHORITY WELL THAT MIGHT MEAN SOMETHING ON CAPITOL HILL BUT IT DOESN'T IN THE REAL WORLD LAST YEAR CHINA SOUTHERN GLASS CO 26 OWNED BY THE PEOPLE'S LIBERATION ARMYCONTROLLED NORTHERN INDUSTRIES CO BOUGHT 60 OF A LOS ANGELES GLASS COMPANY DOES THAT MAKE THE CALIFORNIA COMPANY SUBJECT TO MFN SANCTIONS WHAT ABOUT HONGKONG TELECOM AND CATHAY PACIFIC AIRLINES IN WHICH CHINA'S STATERUN INVESTMENT AGENCY HAS TAKEN SIGNIFICANT POSITIONS THEN THINGS GET REALLY MESSY THE BILL FURTHER DEFINES A STATEOWNED ENTERPRISE AS ONE WHOSE PRODUCTION PURCHASES OF INPUTS AND SALES OF OUTPUT IN WHOLE OR IN PART ARE SUBJECT TO STATE SECTORAL OR REGIONAL PLANS CHINA MAY HAVE COME A LONG WAY BUT THE STATE DOES DETERMINE THE MANUFACTURE AND DISTRIBUTION OF SEVERAL DOZEN COMMODITIES INCLUDING STEEL OIL AND COAL UNDER THIS CLAUSE IT LOOKS LIKE A MOMANDPOP WIDGET FACTORY THAT HAS TO PURCHASE INPUTS OF STEEL COULD BE CONSIDERED A STATE ENTERPRISE THEN THE DRAFTERS THOROUGHLY CONFUSE THINGS THREE PARAGRAPHS LATER BY NOTING THAT A COMPANY IS NOT STATEOWNED AND THEREFORE NOT SUBJECT TO MFN SANCTIONS IF IT IS LICENSED BY A GOVERNMENTAL AUTHORITY AS A COLLECTIVE COOPERATIVE OR PRIVATE ENTERPRISE JUST GET A GOVERNMENTAL AUTHORITY ANY AUTHORITY TO ISSUE A NEW LICENSE ANY LICENSE AND YOU'RE OFF THE HOOK OH NO COMES THE REPLY IT'S NOT THAT EASY BECAUSE THE US TREASURY WILL DECIDE WHO MEETS WHAT CONDITIONS RIGHT THE MIND BOGGLES AT THE PROSPECT OF TREASURY AGENTS MEASURING INPUTS AND OUTPUTS ASSESSING OWNERSHIP STRUCTURES MONITORING PROFITS AND SCRUTINIZING THE LICENSES OF EVERY EXPORTER IN THE MOST POPULOUS NATION AND FASTESTGROWING ECONOMY ON EARTH THE PELOSIMITCHELL BILL IS NOT ALL BAD ONE SECTION FOR EXAMPLE LISTS THE WAYS IN WHICH CHINA VIOLATES INTERNATIONAL NORMS OF DECENCY SUCH AS UNAUTHORIZED WEAPONS SALES TO OUTLAW REGIMES ARBITRARY ARREST AND SUPPRESSION OF INDEPENDENT TRADE UNIONS AMID ALL THE EUPHORIA ABOUT THE AWAKENING OF THIS DRAGON IT'S USEFUL TO REMEMBER THAT THE CHINESE GOVERNMENT CAN AND DOES SAVAGE ITS PEOPLE CHINA IS BY NO MEANS A FREE TRADER BUT RESTRICTING TRADE IS NOT GOING TO ENCOURAGE IT TO BECOME ONE AND WE FIND IT CURIOUS THAT THE AUTHORS OF THE BILL ARE RIGHTEOUSLY OUTRAGED ABOUT CHINA IMPOSING IMPORT QUOTAS BUT DON'T THEN CONCLUDE THAT THE US SHOULD LIFT ITS OWN QUOTAS ON CHINESE GOODS USING MFN AS A CLUB TO BATTER CHINA HELPS THOSE IT PROPOSES TO PUNISH AND HURTS THOSE IT PRESUMES TO HELP THE FACT IS THE LIVES OF THE GOVERNMENT BULLIES WILL NOT BE AFFECTED A WHIT BY A CHANGE IN MFN STATUS THE CHINESE WHO WILL BE HURT ARE THE ONES WHO HAVE TAKEN THE PLUNGE INTO THE PRIVATE ECONOMY AND MADE PRODUCTS THAT AMERICANS WISH TO BUY A WORKER WHO LEAVES HIS WORK UNIT TO STRIKE OUT ON HIS OWN TAKES A HUGE RISK LOSING A VARIETY OF GUARANTEED BENEFITS BUT HE ALSO GAINS A DEGREE OF FREEDOM FROM STATE BUSYBODIES WHO CAN CONTROL EVERYTHING FROM WHEN TO GET MARRIED TO WHETHER HE GETS AN APARTMENT BY GOING PRIVATE HE MAKES HIS OWN RULES OVER MORE ASPECTS OF HIS LIFE THUS EXPANDING THE BOUNDARIES OF PERSONAL LIBERTY CHANGE IN CHINA IS NOT COMING FROM INSIDE THE WALLS OF ZHONGNANHAI BEIJING'S KREMLIN BUT IN THE MILLIONS OF INDIVIDUAL INITIATIVES FOSTERED INDEED REQUIRED BY THE PRIVATE ECONOMY TRADE ENCOURAGES THIS TREND GIVEN THE TROUBLES OF HIS FIRST 100 DAYS MR CLINTON MUST BE AWARE OF THE LAW OF UNINTENDED CONSEQUENCES IN THIS CASE THE UNINTENDED CONSEQUENCES OF PASSING THE PELOSIMITCHELL BILL ARE PREDICTABLE BAD FOR CHINA BAD FOR THE US AND BAD FOR HONG KONG AND TAIWAN WHOSE BOOMING ECONOMIES ARE INCREASINGLY TIED TO CHINA'S A BETTER APPROACH IS TO INDICATE AMERICAN DISPLEASURE WITH CHINESE POLICY IN WAYS THAT AFFECT ONLY THOSE WHO MAKE IT MR CLINTON WAS RIGHT FOR EXAMPLE TO HAVE JUST MET WITH THE DALAI LAMA SUCH A MEETING EXPRESSES IN A FOCUSED WAY US CONCERN WITH BEIJING'S AWFUL RECORD IN TIBET SIMILARLY THE US COULD ACKNOWLEDGE THAT THERE IS A CHINESE SOCIETY THAT IS WELL ON ITS WAY TO FREEDOM AND DEMOCRACY TAIWAN INVITE PRESIDENT LEE TENGHUI TO THE WHITE HOUSE PRAISE TAIWAN'S PROGRESS USHER IT INTO THE GATT SUCH ACTIONS WOULD MAKE AMERICA'S PERSPECTIVE CLEAR TO THE MAINLAND WITHOUT HURTING THE AVERAGE WONG IN THE STREET BEST OF ALL EXTEND MFN AND GIVE THE CREDIT TO GOVERNOR PATTEN CONSIDERING THE INVECTIVE THAT THE GOVERNOR HAS HAD TO ENDURE FROM CHINA WHICH HAS CALLED HIM AMONG OTHER THINGS A PROSTITUTE AND A TANGO DANCER IT WOULD BE SWEET IRONY FOR BEIJING TO HAVE TO ACCEPT THAT HE WAS RESPONSIBLE FOR CLINCHING AN AGREEMENT IT WANTS BADLY IT WOULD ALSO ENHANCE MR PATTEN'S STATURE BACK IN HONG KONG MOST OF ALL SUCH A RESPONSE WOULD COOL THE MFN FEVER AND APPLY RATIONAL THOUGHT TO THE USCHINA RELATIONSHIP 9304300122 930430 REVIEW & OUTLOOK EDITORIAL JIM WRIGHT RETURNS THE CONGRESSIONAL LEADERSHIP HAS A PROBLEM THEY OPPOSE A LINEITEM VETO FOR THE PRESIDENT WHILE MORE THAN 70 OF AMERICANS SUPPORT IT THE PRESSURE FOR A LINEITEM VETO IS SO INTENSE THAT CONGRESS IS PASSING A FAKE SUBSTITUTE IN HOPES THAT PEOPLE WILL BE FOOLED AND STOP BOTHERING THEM THE LEADERSHIP'S IMPOSTOR IS CALLED EXPEDITED RECISION AND WAS DETAILED IN THIS SPACE WEDNESDAY THE SAME DAY IT ALSO RAN INTO TROUBLE ON THE HOUSE FLOOR ON A KEY TEST VOTE EVERY REPUBLICAN SAVE TWO VOTED NO THE BILL WOULD FORCE A PRESIDENT TO SIGN A SPENDING BILL INTO LAW AND ALLOW HIM TO SEND A LIST OF SUGGESTED CUTS TO CONGRESS CUTS THEY WOULD BE FREE TO IGNORE ALL BUT ONE OF THE 38MEMBER BLACK CAUCUS ALSO OPPOSED IT THE CAUCUS DISLIKES ANYTHING REMOTELY RESEMBLING A LINEITEM VETO SO THE IMPOSTOR VETO WAS BEING DEFEATED IN THE TEST VOTE HOUSE SPEAKER TOM FOLEY DECIDED TO APPLY SOME MUSCLE AS THE 15 MINUTES SET ASIDE FOR VOTING EXPIRED HE ORDERED THE VOTE KEPT OPEN SO HE COULD SWITCH ENOUGH VOTES TO EKE OUT A 212TO208 VICTORY CSPAN VIEWERS SAW THE VOTE CLOCK SIT AT ZERO FOR 13 MINUTES UNTIL THE SPEAKER GOT HIS WAY YESTERDAY THE HOUSE VOTED DOWN THE REAL THING WHEN OFFERED BY REPUBLICANS AND ON FINAL VOTE PASSED THE IMPOSTOR BY 258157 AFTER WEDNESDAY'S DECISIVE BALLOT MR FOLEY SAID HE USED SWEET PERSUASION TO WIN OVER LAWMAKERS REP VIC FAZIO ONE OF HIS TOP ENFORCERS SAID NO ARMS WERE TWISTED BUT THERE WERE SOME SPRAINS AND ADDED THAT THE HOUSE MAY INDEED SEE MORE OF THIS KIND OF PERSUASION IF THE CLINTON PROGRAM RUNS AGROUND MR FOLEY'S TACTICS ARE REMINISCENT OF FORMER SPEAKER JIM WRIGHT WHO AFTER HE LOST A VOTE IN 1987 WANTED TO CIRCUMVENT A RULE THAT ANOTHER VOTE COULDN'T BE HELD FOR 24 HOURS HE PROMPTLY ADJOURNED THE HOUSE RECONVENED IT MINUTES LATER AND DECLARED A NEW LEGISLATIVE DAY HAD DAWNED THE HOUSE CLERK REPORTED THAT WHILE THE CALENDAR MERE MORTALS USED READ OCTOBER 29 CONGRESS'S CALENDAR ALREADY READ OCTOBER 30 EVEN SOME CONGRESSIONAL LEADERS ARE NOW TRYING TO RESTRAIN THEIR OWN ARROGANCE LAST YEAR SENATE MAJORITY LEADER GEORGE MITCHELL WAS ROUNDLY CRITICIZED FOR KILLING A PRODUCT LIABILITY REFORM BILL BY HOLDING A VOTE OPEN FOR 55 MINUTES HE HAS ISSUED A NEW POLICY THAT SAYS HE WILL NOW HOLD NO VOTE OPEN FOR MORE THAN 20 MINUTES A SIMILAR PLEDGE FROM SPEAKER FOLEY WOULD AT LEAST RESTORE THE CONFIDENCE OF HIS FELLOW MEMBERS IN THE VOTING PROCESS BILLS LIKE EXPEDITED RECISION WOULD BE JUST AS PHONY BUT AT LEAST THE VOTE ON THEM WOULD BE REAL 9304300121 930430 LLOYD'S OF LONDON PROPOSES ALLOWING CORPORATE INVESTORS TO JOIN SYNDICATES BY WALL STREET JOURNAL REPORTERS NICHOLAS BRAY IN LONDON AND GREG STEINMETZ IN NEW YORK LLOYD'S OF LONDON IN A BID TO SAVE ITSELF FROM RUIN UNVEILED A RADICAL NEW BUSINESS PLAN THAT WILL ALLOW CORPORATE INVESTORS FOR THE FIRST TIME INTO THE 306YEAROLD INSURANCE MARKET WITH SOARING LOSSES NOW OFFICIALLY PREDICTED TO REACH A RECORD 25 BILLION 393 BILLION OR MORE FOR LLOYD'S LATEST REPORTING YEAR CHAIRMAN DAVID ROWLAND WARNED THAT THE PLAN IS LLOYD'S ONLY HOPE THE ALTERNATIVE IS BLEAK MR ROWLAND WROTE IN A STRATEGY DOCUMENT BORNE OUT OF MONTHS OF TOPLEVEL DISCUSSIONS SHOULD MEMBERSHIP AND MARKET NOT UNITE BEHIND THIS PLAN THEN LLOYD'S MAY HAVE NO FUTURE IN THE PAST LLOYD'S ONLY ALLOWED WEALTHY INDIVIDUALS KNOWN AS NAMES TO JOIN ITS INSURANCE SYNDICATES IN EXCHANGE FOR A SHARE OF THE PROFITS THE NAMES COULD BE CALLED UPON TO DIP INTO THEIR PERSONAL FORTUNES TO PAY CLAIMS IN RECENT YEARS AS A RESULT OF A SPATE OF DISASTERS AROUND THE GLOBE THE SYNDICATES HAVE SUSTAINED TREMENDOUS LOSSES AND HUNDREDS OF INDIVIDUAL FORTUNES HAVE BEEN DESTROYED THE REFORMS WILL CHANGE THE CHARACTER OF TRADITIONBOUND LLOYD'S FOUNDED IN A COFFEE HOUSE IN THE 1680S AS A WAY TO SPREAD THE RISKS OF THE SHIPPING BUSINESS SOME OF THOSE TRADITIONS DATE BACK TO THE INCEPTION AS IN THE OLD DAYS A BELL IN THE LLOYD'S UNDERWRITING ROOM THE TRADING FLOOR OF LLOYD'S POSTMODERN HEADQUARTERS IN LONDON'S FINANCIAL DISTRICT RINGS ONCE TO ANNOUNCE BAD NEWS AND TWICE FOR GOOD LLOYD'S ESTABLISHED ITSELF IN THE UNITED STATES BY MAKING GOOD ON CLAIMS FROM THE SAN FRANCISCO EARTHQUAKE IN 1906 OVER THE YEARS LLOYD'S SYNDICATES GAINED RENOWN BY INSURING ODDBALL RISKS SUCH AS BETTY GRABLE'S LEGS THE FINGERS OF CONCERT PIANISTS AND THE ARMS OF BASEBALL PITCHERS ALTHOUGH UNUSUAL RISKS WILL STILL BE PART OF BUSINESS THOSE INSURING THE RISKS WILL BE DIFFERENT UNDER THE ANNOUNCED REFORMS CORPORATIONS CAN FOR THE FIRST TIME INVEST IN THE SYNDICATES ALTHOUGH THE TERMS FOR ADMISSION HAVE YET TO BE DEFINED THEY WANT TO ATTRACT CORPORATE MEMBERS BUT THEY DON'T WANT TO CREATE A PREFERENCE FOR THE CORPORATE CAPITAL SAID AN INDIVIDUAL CLOSE TO LLOYD'S THEY'RE NOT LOOKING TO REPLACE THEIR EXISTING CAPITAL BASE NEVERTHELESS AS A LURE TO ATTRACT FRESH CAPITAL THE CORPORATE INVESTORS WOULD HAVE ONLY LIMITED LIABILITY THAT MEANS THAT UNLIKE THE NAMES THEY CAN ONLY LOSE AS MUCH MONEY AS THEY INVEST IN ADDITION NEW MEMBERS WOULD BE PROTECTED FROM LOSSES ON POLICIES WRITTEN BEFORE 1986 SOME LLOYD'S SYNDICATES HAVE LATELY BEEN VISITING INVESTMENT BANKS IN NEW YORK TRYING TO ATTRACT CORPORATE INVESTORS KIRK ROESER PRESIDENT OF GILL & ROESER A NEW YORKBASED REINSURANCE BROKERAGE FIRM SAID US INVESTORS WILL BE HESITANT TO INVEST WITHOUT PROOF THAT LLOYD'S SYNDICATES CAN MAKE MONEY LLOYD'S HAS TO REPROVE ITSELF IN THE MARKET HE SAID HE ADDED THAT LLOYD'S WILL HAVE TO SHAKE THE PARANOIA AMONG US INVESTORS THAT THE MOST PROFITABLE SYNDICATES ARE RESERVED FOR BRITONS LLOYD'S PLANS TO RETURN TO PROFITABILTY BY CUTTING COSTS BY ELIMINATING 2500 JOBS AND BUILDING NEW MARKETS THE BUSINESS PLAN PROJECTED THAT INDIVIDUAL MEMBERS SHOULD BE ABLE TO ACHIEVE AN AVERAGE RETURN OF 33 A YEAR ON THEIR INVESTMENT CORPORATE MEMBERS BECAUSE OF MORE ONEROUS SOLVENCY REQUIREMENTS SHOULD BE ABLE TO ACHIEVE A RETURN OF ABOUT 20 9304300120 930430 GENERAL MOTORS TO IDLE 3 PLANTS NEXT WEEK SLOW SALES ARE CITED DETROIT GENERAL MOTORS CORP SAID SLOW SALES WILL FORCE IT TO IDLE NEXT WEEK ITS ASSEMBLY PLANTS IN OSHAWA AND SCARBOROUGH ONTARIO AND IN ORION TOWNSHIP MICH A FOURTH PLANT IN ARLINGTON TEXAS WILL OPERATE ONLY ONE WORKTURN GM HAS SCHEDULED OVERTIME NEXT WEEK AT 15 OTHER CAR AND TRUCK FACILITIES FORD MOTOR CO SAID THAT ALL 11 OF ITS TRUCK PLANTS AND FOUR OF ITS CAR ASSEMBLIES ARE SCHEDULED FOR OVERTIME THIS WEEK CHRYSLER CORP SAID IT HAS SCHEDULED OVERTIME THIS WEEK AND NEXT AT EIGHT OF ITS ASSEMBLY PLANTS IN THE US AND CANADA ALTOGETHER THE 10 DOMESTIC AUTO MAKERS PLAN TO BUILD 233044 TOTAL VEHICLES THIS WEEK UP 104 FROM 211112 VEHICLES BUILT IN THE YEAREARLIER PERIOD 9304300119 930430 CORNING APPROVES BUYBACK CORNING NY CORNING INC SAID ITS DIRECTORS APPROVED A PLAN TO BUY BACK AS MANY AS THREE MILLION COMMON SHARES IN THE OPEN MARKET THE COMPANY SAID IT IS REPURCHASING THE SHARES TO AVOID DILUTION FROM ISSUANCE OF SHARES TO EMPLOYEE STOCK OWNERSHIP PLANS CORNING WHICH MAKES CERAMICS COOKWARE AND OPTICAL FIBER AND PROVIDES CLINICAL TESTING SERVICES HAS ABOUT 193 MILLION SHARES OUTSTANDING 9304300118 930430 LEISURE & ARTS BOOKSHELF THE FACES BEHIND THE S&L SCANDAL BY GABRIELLA STERN A SENSE OF DISMAY AND RESIGNATION THAT THINGS SO FAR GONE CAN'T POSSIBLY BE FIXED FILLS A NEW ACCOUNT OF THE THRIFT SCANDAL S&L HELL THE PEOPLE AND THE POLITICS BEHIND THE 1 TRILLION SAVINGS AND LOAN SCANDAL NORTON 416 PAGES 2495 WRITTEN BY WASHINGTON POST REPORTER KATHLEEN DAY THERE'S LITTLE OPTIMISM IN THIS BOOK EVEN WHEN MS DAY WRITES ABOUT THOSE WHO CAME CLOSEST TO BEING THE HEROES OF THE DISASTER WHICH ISN'T SAYING MUCH ONE ASPECT OF THE S&L SCANDAL THAT ISN'T OFTEN NOTED BUT IS STRIKINGLY APPARENT IN EVERY NEW ACCOUNT OF THE DEBACLE IS THE UTTER MEDIOCRITY OF THOSE INVOLVED FEDERAL HOME LOAN BANK BOARD CHAIRMAN EDWIN JOHN GRAY FOR EXAMPLE IS A GOOD GUY IN THIS ACCOUNT NOT BY VIRTUE OF HIS ACCOMPLISHMENTS WHICH WERE SLIGHT BUT BECAUSE HE WAS WELLMEANING THROUGHOUT HIS MUDDLED STEWARDSHIP OF THE BOARD PARTICULARLY AS HE LOBBIED FOR MORE THRIFT REGULATORS DONALD REGAN RONALD REAGAN'S TREASURY SECRETARY ALSO COMES OFF AS WELLINTENTIONED WHEN HE MAKES NOISES ABOUT REINING IN THE THRIFT INDUSTRY'S POWERS THOUGH HE HIMSELF IS ULTIMATELY LASSOED BY THE S&L LOBBY MS DAY IS CERTAINLY NOT ENAMORED OF MR REAGAN'S BUDGET DIRECTOR DAVID STOCKMAN AND EXTREME FREE MARKETERS INCLUDING THE WALL STREET JOURNAL'S EDITORIAL BOARD ARE CAST IN BLACK HATS BECAUSE THEY ADVOCATED DEREGULATING THE INDUSTRY AT A TIME WHEN SHE BELIEVES THRIFTS NEEDED MORE GOVERNMENT CONTROLS STILL HER SHARPEST WORDS ARE RESERVED FOR THE CORRUPT S&L CHIEFS SLEAZY CONGRESSMEN AND LILYLIVERED REGULATORS THIS BOOK'S STRENGTH IS ITS DESCRIPTION OF THE INFIGHTING IN GOVERNMENT AGENCIES AND CONGRESSIONAL COMMITTEES AND THE FAILURES OF THRIFTS IN TEXAS COLORADO AND CALIFORNIA MS DAY MOVES THE STORY ALONG AT A FAST PACE EXHIBITING A JOURNALISTIC PROPENSITY FOR ONESENTENCE PARAGRAPHS AND THREEPAGE CHAPTERS MISSING FROM THIS ACCOUNT HOWEVER IS A HARD LOOK AT HOW THE AMERICAN TAXPAYERS CAME TO FIND THEMSELVES IN THE POSITION OF HAVING TO BAIL OUT THE MORTGAGELENDING INDUSTRY WHILE MS DAY GIVES A QUICK HISTORICAL OVERVIEW OF THE RISE OF THE HOMELOAN INDUSTRY HER INTENT IS TO DRAMATIZE NOT ANALYZE THIS BOOK DOESN'T ADVANCE A GRAND THEORY SHE WRITES IN THE INTRODUCTION INSTEAD IT TELLS THE HISTORY OF THE SCANDAL THROUGH THE STORIES OF THE PRINCIPAL PLAYERS IF THERE ARE SOME OBVIOUS LESSONS FOR THE FUTURE TO BE LEARNED I'VE LEFT THEM FOR THE READER TO DRAW SO WE WATCH FORMER REP FERNAND ST GERMAIN WHO AS CHAIRMAN OF THE HOUSE BANKING COMMITTEE BOOSTED DEPOSIT INSURANCE IN EXCHANGE FOR SWEETHEART LOANS EAT PRIMERIB DINNERS PAID FOR BY THE US LEAGUE OF SAVINGS INSTITUTIONS BY AVOIDING EXPLANATION OR REFLECTION THIS BOOK BECOMES LITTLE MORE THAN A CHRONOLOGY OF EVENTS AND A PILING ON OF SHAMEFUL EPISODES IT IS ALSO OCCASIONALLY MARRED BY THE AUTHOR'S CONFUSING TENDENCY TO JUMP AROUND THE ANALYSIS MS DAY DOES PROVIDE HINTS AT A CRUCIAL ISSUE THAT DESERVES FURTHER EXPLORATION IN THE INTRODUCTION SHE ASSERTS THAT THE THRIFT INDUSTRY HAS BECOME ONE OF THE BEST EXAMPLES OF SOCIALISM IN THE US ECONOMY SHE CONTINUES THROUGHOUT THE BOOK READERS WILL FIND EXAMPLES OF AN ECONOMIC PHENOMENON THAT FOR LACK OF A BETTER DESCRIPTION MIGHT BE CALLED THE I GOTCHA SYNDROME WHERE A BORROWER GETS SO FAR IN DEFAULT THAT THE LENDER HAS NO CHOICE BUT TO THROW GOOD MONEY AFTER BAD HER CHOICE OF THE WORD SOCIALISM MAY NOT BE THE WISEST OR MOST PRECISE BUT IT'S A STEP IN THE RIGHT DIRECTION BECAUSE IF FULLY DEVELOPED IT COULD MOVE BEYOND THE EASY EXPLANATION OF THE MESS THAT THE INDUSTRY WAS THE VICTIM OF INFLATION HIGH INTEREST RATES AND A FEW BAD EGGS AT THE HELM THE STORY OF HOW THE FEDERAL GOVERNMENT BECAME A PLAYER IN THE DECLINE OF THE THRIFT INDUSTRY IS A REMINDER OF WHAT THOSE EXTREME FREE MARKETERS HAVE LONG BEEN SAYING THAT IT'S LESS DANGEROUS AND COSTLY TO LET OBSOLETE INDUSTRIES FEND FOR THEMSELVES THAN TO PROP THEM UP FOR QUESTIONABLE SHORTTERM SAVINGS IN AN EPISODE FROM MS DAY'S BOOK LAWRENCE KUDLOW A BUDGET OFFICIAL UNDER MR REAGAN MAKES THE POINT APTLY WHEN HE SHOCKS CALIFORNIA S&L EXECUTIVES AT A WASHINGTON DINNER PARTY WITH THIS RANT WHY SHOULD WE GIVE YOU SUBSIDIES HAVE YOU LOOKED AT THE CAR INDUSTRY LATELY THE STEEL INDUSTRY WE'RE NOT GIVING THEM ANY SPECIAL TREATMENT HAVE YOU LOOKED AT THE TIMBER INDUSTRY THE MANUFACTURING SECTOR THEY'RE NOT GETTING ANY SPECIAL TREATMENT WHY SHOULD YOU THE S&L INDUSTRY SURELY ISN'T THE LAST INDUSTRY TO LOCK THE GOVERNMENT IN ITS EMBRACE IN A DESPERATE EFFORT TO AVOID AN UNTIMELY DEATH IF WE DON'T START EXAMINING SIMILAR PRIVATE SECTORPUBLIC SECTOR RELATIONSHIPS AGRICULTURE FOR EXAMPLE THIS WON'T BE THE LAST TIME TAXPAYERS FOOT THE BILL FOR A DISASTER THAT COULD HAVE BEEN PREVENTED IF THE PEOPLE INVOLVED HAD THE VISION AND GUTS TO MAKE A CHANGE MS STERN IS A REPORTER IN THE JOURNAL'S PITTSBURGH BUREAU 9304300117 930430 GLOBAL NATURAL RESOURCES HOUSTON GLOBAL NATURAL RESOURCES INC SAID ITS EXPLORATORY WELL IN HARRIS COUNTY TEXAS TESTED 153 MILLION CUBIC FEET OF GAS AND 248 BARRELS OF CONDENSATE A DAY THE WELL LOCATED IN THE NORTH TAYLOR LAKE FIELD WAS TESTED ON A 20/64INCH CHOKE OR RESTRICTED OPENING GLOBAL NATURAL RESOURCES THE OPERATOR OWNS 213 OF THE WELL AND FLOYD OIL CO A CLOSELY HELD COMPANY IN HOUSTON HAS A 238 INTEREST THE REST IS OWNED BY OTHER INDIVIDUALS AND CLOSELY OWNED COMPANIES GLOBAL SAID 9304300116 930430 GENERAL HOST ACQUISITION STAMFORD CONN GENERAL HOST CORP SAID IT COMPLETED ITS ACQUISITION OF THE 495 SHARE OF SUNBELT NURSERY GROUP INC'S COMMON STOCK THAT HAD BEEN HELD BY PIER 1 IMPORTS INC GENERAL HOST EXCHANGED 1940000 SHARES OF ITS COMMON FOR PIER 1 IMPORTS' 42 MILLION SHARES OF SUNBELT NURSERY GROUP SUNBELT WHICH CONTINUES TO BE LISTED ON THE AMERICAN STOCK EXCHANGE IS A 105STORE CHAIN OF LAWN AND GARDEN CENTERS GENERAL HOST OPERATES 288 FRANK'S NURSERY & CRAFT STORES IN 17 STATES 9304300115 930430 PAINEWEBBER UNIT SUES 3 EXOFFICIALS FOR ATTEMPTED THEFT OF CLIENTS STAFF BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A PAINEWEBBER GROUP INC UNIT IN AN UNUSUAL ACTION SUED THREE FORMER OFFICIALS ACCUSING THEM OF ATTEMPTING TO STEAL CLIENTS AND EMPLOYEES FROM THE FIRM IN A SUIT FILED IN A NEW YORK STATE COURT PAINEWEBBER'S MITCHELL HUTCHINS INSTITUTIONAL INVESTORS INC UNIT SAID THE OFFICIALS CONSPIRED TO MISAPPROPRIATE PROPRIETARY AND CONFIDENTIAL CLIENT INFORMATION BELONGING TO THE FIRM MITCHELL HUTCHINS INSTITUTIONAL INVESTORS MANAGES 12 BILLION IN ASSETS FOR PENSION FUNDS THE SUIT SAYS THE THREE OFFICIALS STEPHEN E CANTER EMAD A ZIKRY AND THOMAS A GOEPFERT WRONGLY PROVIDED THAT INFORMATION TO THEIR NEW EMPLOYER THE US UNIT OF KLEINWORT BENSON GROUP PLC THE LONDONBASED INVESTMENT BANK MESSRS CANTER ZIKRY AND GOEPFERT DECLINED TO COMMENT BUT KEITH M JECKS PRESIDENT OF KLEINWORT BENSON INTERNATIONAL INVESTMENT LTD CALLED THE ACCUSATIONS ENTIRELY UNFOUNDED IN A STATEMENT MR JECKS SAID THAT AT NO TIME DURING THEIR EMPLOYMENT WITH MITCHELL HUTCHINS DID MESSRS CANTER OR ZIKRY SOLICIT EMPLOYEES OR CLIENTS TO JOIN KLEINWORT NOR HAVE THEY AT ANY TIME MALIGNED MITCHELL HUTCHINS THE SUIT WHICH WAS EXPECTED FOLLOWS THE MASS DEFECTION OF EXECUTIVES AND PORTFOLIO MANAGERS AT MITCHELL HUTCHINS INSTITUTIONAL INVESTORS' BOND OPERATIONS AS REPORTED AT LEAST SEVEN EXECUTIVES AND PORTFOLIO MANAGERS AND SEVEN PORTFOLIO ASSISTANTS AND OTHER SUPPORT PERSONNEL RECENTLY QUIT THE MONEYMANAGEMENT UNIT MESSRS CANTER AND ZIKRY WILL JOINTLY HEAD THE NORTH AMERICAN INVESTMENTMANAGEMENT BUSINESS OF KLEINWORT BENSON'S US UNIT WHICH MANAGES ABOUT 600 MILLION FOR US INSTITUTIONAL CLIENTS MR GOEPFERT WILL BE A PORTFOLIO MANAGER IT IS RELATIVELY COMMON FOR SECURITIES FIRMS TO SUE FORMER STOCKBROKERS WHO ATTEMPT TO TAKE INDIVIDUAL CLIENTS WITH THEM TO NEW FIRMS BUT IT IS UNUSUAL FOR PORTFOLIO MANAGERS AND OTHER EMPLOYEES DEALING WITH INSTITUTIONAL CLIENTS TO BE ACCUSED OF PILFERING SENSITIVE DATA FROM BROKERAGE FIRMS SECURITIES LAWYERS SAID IN PAPERS FILED WITH THE STATE COURT MITCHELL HUTCHINS ACCUSED MESSRS CANTER AND ZIKRY OF A SCHEME AND CONSPIRACY TO STEAL THE CORE OF MITCHELL HUTCHINS'S FIXEDINCOME DEPARTMENT EMPLOYEES AND CLIENTS LEAVING THE FIRM AT AN EXTREME COMPETITIVE DISADVANTAGE MITCHELL HUTCHINS SAID IT PAID 1 MILLION IN SALARY AND BONUS TO MR CANTER IN 1992 900000 TO MR ZIKRY AND 320000 TO MR GOEPFERT ACCORDING TO COURT PAPERS IT ISN'T CLEAR HOW MUCH THE THREE EXECUTIVES WILL BE PAID AT KLEINWORT BENSON MITCHELL HUTCHINS SAID THE MASS DEFECTION WAS ALL PART OF A PREARRANGED SCHEME TO DISRUPT MITCHELL HUTCHINS'S BUSINESS AND TO PIRATE ITS CLIENT BASE ACCORDING TO PAPERS FILED IN THE CASE MOREOVER THE FORMER EXECUTIVES HAVE SOLICITED NUMEROUS CLIENTS TO TERMINATE THEIR BUSINESS AND CONTRACTUAL RELATIONS WITH THE FIRM THE PAPERS SAID THE SUIT ASKS FOR AN INJUNCTION PREVENTING THE FORMER EXECUTIVES FROM SOLICITING ANY ASSETMANAGEMENT BUSINESS FROM MITCHELL HUTCHINS CLIENTS AMONG OTHER THINGS PAINEWEBBER OFFICIALS FOR THEIR PART SAID SEVERAL CLIENTS OF THE MONEYMANAGEMENT UNIT HAVE CALLED THE FIRM AND EXPRESSED OUTRAGE AT THE DEFECTIONS MANY HAVE EXPRESSED THEIR SUPPORT OF MITCHELL HUTCHINS THE PAINEWEBBER OFFICIALS SAID YESTERDAY A PAINEWEBBER OFFICIAL SAID IT WAS BUSINESS AS USUAL AT MITCHELL HUTCHINS DESPITE THE DEPARTURES THE DEFECTIONS WERE LIMITED TO THE INSTITUTIONAL MANAGEMENT UNIT'S FIXEDINCOME GROUP WHICH MANAGES ABOUT 4 BILLION THE UNIT GENERATED ONLY ABOUT 9 MILLION IN ANNUAL REVENUE PEOPLE FAMILIAR WITH PAINEWEBBER SAID OF THAT ABOUT 5 MILLION TO 6 MILLION IS AT RISK OF BEING LOST BECAUSE OF THE DEPARTURES THE PEOPLE SAID PAINEWEBBER'S STOCK FELL ON THE NEWS TRADING 625 CENTS LOWER AT 24125 IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE MEANTIME AT LEAST ONE ANALYST REINFORCED HIS POSITIVE VIEW OF PAINEWEBBER'S SHARES DEAN EBERLING A BROKERAGE FIRM ANALYST AT SHEARSON LEHMAN BROTHERS INC SAID IN A REPORT ISSUED YESTERDAY THAT HE DIDN'T VIEW THIS MINOR POTENTIAL REVENUE LOSS AS DETRIMENTAL TO THE EARNINGS STORY AT PAINEWEBBER WHILE THE FIXEDINCOME ASSETS UNDER MANAGEMENT WILL OBVIOUSLY SUFFER FROM THESE DEPARTURES WE DOUBT THAT EVERY DOLLAR WILL WALK OUT THE DOOR MR EBERLING WROTE HE ADDED WE WOULD BE AGGRESSIVE BUYERS OF THIS STOCK ON WEAKNESS AND HOLD TO OUR 3235 PRICE TARGET 9304300114 930430 CYPRESS SHARE BUYBACK CLEARED SAN JOSE CALIF CYPRESS SEMICONDUCTOR CORP SAID ITS BOARD AUTHORIZED THE REPURCHASE OF AN ADDITIONAL ONE MILLION COMMON SHARES THE COMPANY ALREADY REPURCHASED 29 MILLION OF ITS SHARES LAST YEAR AND AN ADDITIONAL 15 MILLION SHARES THIS YEAR CYPRESS HAS ABOUT 376 MILLION SHARES OUTSTANDING IT HAS SAID IT BELIEVES THE STOCK IS UNDERVALUED AND IS A GOOD INVESTMENT CYPRESS SHARES CLOSED AT 10125 UP 25 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9304300113 930430 FOREIGN EXCHANGE DOLLAR FALLS AGAINST THE YEN AS TRADERS AWAIT WORD ON GROUP OF SEVEN MEETING BY RICHARD SCHUMACHER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR WAS MIXED AGAINST EUROPEAN CURRENCIES BUT LOWER AGAINST THE YEN AS TRADERS CONCLUDED THAT THE GROUP OF SEVEN INDUSTRIALIZED NATIONS PROBABLY WOULDN'T COMMENT EXPLICITLY ON THE YEN'S RECENT RISE THAT SPECULATION WAS BORNE OUT WHEN LATE IN THE AFTERNOON IN WASHINGTON G7 FINANCE MINISTERS AND CENTRAL BANKERS CALLED FOR CLOSE COOPERATION TO CALM THE CURRENCY MARKETS BUT DIDN'T SPECIFICALLY SAY THEY WOULD ACT JOINTLY TO STOP THE RISE OF THE JAPANESE YEN ANOTHER DEVELOPMENT YESTERDAY'S REPORT OF WEAKERTHANEXPECTED US ECONOMIC GROWTH IN THE FIRST QUARTER HAD LITTLE LASTING IMPACT ON THE DOLLAR LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 15790 MARKS DOWN FROM 15810 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY WAS CHANGING HANDS AT 111 YEN DOWN FROM 11215 YEN STERLING WAS TRADING AT 15725 DOWN FROM 15740 ABOUT MIDDAY FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 11110 YEN AND AT 15810 MARKS AT THE G7 MEETING JAPAN WORRIED THAT THE RECENT STRENGTH OF THE YEN WILL HURT ITS ECONOMY HAD PRESSED THE OTHER COUNTRIES TO SUPPORT EFFORTS TO HOLD DOWN THE CURRENCY THE COMMUNIQUE ISSUED AT THE END OF THE MEETING SAID WE AGREED THAT EXCHANGE RATES SHOULD REFLECT ECONOMIC FUNDAMENTALS AND THAT EXCESSIVE VOLATILITY IS UNDESIRABLE WE REVIEWED RECENT DEVELOPMENTS IN FOREIGNEXCHANGE MARKETS AND AFFIRMED OUR CONTINUED COMMITMENT TO CLOSE COOPERATION IN EXCHANGE MARKETS BEFORE THE COMMUNIQUE WAS ISSUED FOREIGNEXCHANGE DEALERS HAD SAID THAT THE ABSENCE OF COMMENTS SUGGESTING THAT THE YEN HAD STRENGTHENED ENOUGH PROBABLY WOULD CAUSE THE JAPANESE CURRENCY TO RISE FURTHER PEOPLE ARE BEGINNING TO EXPECT NOTHING SIGNIFICANT ABOUT THE YEN WILL BE SAID BY THE G7 AND THIS POISES THE YEN FOR NEW STRENGTH SAID JOHN NELSON DIRECTOR OF FOREIGN EXCHANGE AT BARCLAYS BANK PLC BEFORE THE COMMUNIQUE WAS ISSUED EXPECTATIONS ABOUT THE ABSENCE OF COMMENTS ON THE YEN WERE FUELED BY A REPORT FROM A JAPANESE NEWS SERVICE ABOUT A DRAFT VERSION OF THE G7 COMMUNIQUE THE GROUP OF SEVEN INCLUDES THE US JAPAN BRITAIN CANADA GERMANY FRANCE AND ITALY AS FOR THE REPORT ON US GROSS DOMESTIC PRODUCT MARKET PARTICIPANTS SAID THE DATA HAD LITTLE IMPACT ON THE DOLLAR THE COMMERCE DEPARTMENT REPORTED THAT GDP IN THE QUARTER ROSE AT A SEASONALLY ADJUSTED ANNUAL RATE OF 18 A SURVEY OF ECONOMISTS BY DOW JONES CAPITAL MARKETS REPORT HAD PREDICTED THE RATE WOULD RISE BY 23 GDP REPRESENTS THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED IN A NATION THE DOLLAR FELL TO ITS INTRADAY LOWS AGAINST MOST MAJOR CURRENCIES IMMEDIATELY AFTER THE GDP REPORT BUT QUICKLY BOUNCED BACK BECAUSE OF A RECENT STRING OF WEAKERTHANEXPECTED US ECONOMIC DATA TRADERS SAID THE REPORT HAD ALREADY BEEN DISCOUNTED THE DOLLAR HAD BEEN HEAVILY SOLD BEFORE THE NUMBER SAID BARCLAYS MR NELSON A VARIETY OF COMMENTS FROM GERMAN MONETARY OFFICIALS TENDED TO CANCEL EACH OTHER OUT TRADERS SAID GERMAN FINANCE MINISTER THEO WAIGEL UNDERSCORED THE SEVERE NATURE OF GERMANY'S ECONOMIC DOWNTURN SAID IVAN SANDS MANAGER OF FOREIGN EXCHANGE TRADING AND SALES AT CREDIT LYONNAIS MR WAIGEL SAID WESTERN GERMANY'S ECONOMY WILL CONTRACT BY ABOUT 15 THIS YEAR HIS FORECAST WAS MORE PESSIMISTIC THAN THE ORIGINAL GERMAN GOVERNMENT FORECAST AND THAT OF THE INTERNATIONAL MONETARY FUND MR WAIGEL'S COMMENTS PUT SOME DOWNWARD PRESSURE ON THE MARK ESPECIALLY AGAINST OTHER EUROPEAN CURRENCIES TRADERS SAID AS WEAKNESS IN THE GERMAN ECONOMY POINTS TOWARD QUICKER INTEREST RATE CUTS BY THE BUNDESBANK GERMANY'S CENTRAL BANK BUT OTHER PLAYERS SAID MR WAIGEL'S COMMENTS WERE OFFSET BY REMARKS FROM OTMAR ISSING A MEMBER OF THE BUNDESBANK'S POLICYMAKING CENTRAL BANK COUNCIL THAT SUGGEST GERMAN RATES MIGHT NOT DROP MUCH MORE IN THE NEAR TERM THE FRANC IS STANDING FREELY NOW MR NELSON SAID MARKETS HAVE CONFIDENCE IN THE NEW FRENCH GOVERNMENT THE FRANC IS LIKELY TO STRENGTHEN SOME MORE TRADERS ALSO NOTED THAT THE PESETA HAS HELD ITS GROUND AGAINST THE MARK THIS WEEK SUGGESTING THE SPANISH CURRENCY PROBABLY WON'T BE HIT BY THE TYPE OF HEAVY SELLING PRESSURE THAT LED TO CENTRAL BANK INTERVENTION LAST WEEK 9304300112 930430 INTERNATIONAL YELTSIN DRIVES TO OUST CONGRESS APPROVE CONSTITUTION FOR RUSSIA REGION CHIEFS HEAR APPEAL AS PART OF ENDRUN BID ECONOMY SHOWS REVIVAL BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW RUSSIAN PRESIDENT BORIS YELTSIN LAUNCHED HIS ENDRUN STRATEGY FOR PASSING A NEW CONSTITUTION AND ABOLISHING HIS NEMESIS THE PARLIAMENT AS NEW DATA INDICATED THE TROUBLED ECONOMY MIGHT BE BOTTOMING OUT FACED WITH STERN OPPOSITION TO THE CONSTITUTION FROM PARLIAMENT MR YELTSIN INSTEAD IS TAKING HIS DRAFT TO THE GOVERNMENTS OF THE REGIONS AND SEMIAUTONOMOUS REPUBLICS WITHIN RUSSIA AT A MEETING YESTERDAY WITH LEADERS OF THE 88 REGIONS THAT MAKE UP RUSSIA HE CALLED FOR THEM TO COMMENT ON THE DRAFT CONSTITUTION BY MAY 20 HE PROPOSED CALLING A CONSTITUENT ASSEMBLY SOON AFTER THAT COMPOSED OF TWO DELEGATES FROM EACH REGION TO CONSIDER THE DOCUMENT MR YELTSIN SAID LAST SUNDAY'S REFERENDUM IN WHICH 58 OF VOTERS EXPRESSED CONFIDENCE IN HIM AND 53 SUPPORTED HIS ECONOMIC REFORMS GIVE HIM THE MANDATE TO PRESS AHEAD EVERYBODY MUST UNDERSTAND THAT THE PRESIDENT THE GOVERNMENT AND THE POLICY OF REFORMS NOW ENJOY THE PROTECTION OF THE PEOPLE THE OFFICIAL NEWS AGENCY ITARTASS QUOTED MR YELTSIN AS SAYING ALL DECISIONS CONTRADICTING THE WILL OF THE PEOPLE NO MATTER WHO ADOPTS THEM SHOULDN'T BE CARRIED OUT AND SHOULD BE CANCELED MEANWHILE ECONOMISTS IN MR YELTSIN'S CAMP REPORTED THAT CONDITIONS ARE STARTING TO IMPROVE MONEYSUPPLY GROWTH HAS SLOWED TO LESS THAN 20 MONTHLY FROM NEAR 30 LATE LAST YEAR AND INFLATION HAS SLOWED TO 15 OR 20 A MONTH FROM 25 OR 30 LATE LAST YEAR MOREOVER DATA SHOWING A CONTINUED FALL IN PRODUCTION ARE INACCURATE AND WERE CREATED BY THE STATE STATISTICS COMMITTEE FOR POLITICAL PURPOSES CONTENDED ANDREI ILLARIONOV AN ECONOMIST AT THE CENTER FOR ECONOMIC REFORM RECENTLY APPOINTED AS AN ADVISER TO PRIME MINISTER VIKTOR CHERNOMYRDIN PRESSURED TO INVESTIGATE FURTHER HE SAID THE STATISTICS COMMITTEE FOUND THAT PRODUCTION WASN'T ONLY STABILIZING BUT HAD INCREASED 2 IN THE FIRST QUARTER OVER LAST YEAR'S FOURTH QUARTER AND THAT TENDENCY IS CONTINUING IN APRIL MR ILLARIONOV SAID AFTER AN EXPANDED CABINET MEETING THE PRESIDENT'S ATTEMPT TO CIRCUMVENT PARLIAMENT ISN'T SURE TO SUCCEED REGIONAL LEADERS DON'T ALL SUPPORT THE PRESIDENT AND VOTERS IN CERTAIN DISTRICTS GAVE HIM MINIMAL SUPPORT SUNDAY HIS SUPPORT WAS STRONGEST IN THE FAR EAST AND BIG CITIES AND AMONG VOTERS UNDER 30 MOREOVER THE PRESIDENT'S DRAFT CONSTITUTION CALLS FOR A FEDERAL STATE WITH AN EXECUTIVE EVEN STRONGER THAN IN THE US AND SOME REGIONS ARE PUSHING FOR GREATER INDEPENDENCE IN THE REFERENDUM AT LEAST 14 OF THE 21 ETHNIC REPUBLICS THAT ARE PART OF THE RUSSIAN FEDERATION FAILED TO VOTE IN HIS FAVOR IN THE LARGEST ONE TATARSTAN AN ACTIVE BOYCOTT LIMITED TURNOUT TO 20 EVEN IF MR YELTSIN WINS THE SUPPORT OF REGIONAL LEADERS HIS STRATEGY WILL ONCE AGAIN BRING HIM INTO CONFRONTATION WITH THE STANDING PARLIAMENT AND THE LARGER CONGRESS OF PEOPLE'S DEPUTIES HIS DRAFT CONSTITUTION CALLS FOR REPLACING THE CONGRESS WITH A SMALLER BICAMERAL PARLIAMENT FOR WHICH HE PROPOSES HOLDING ELECTIONS AS SOON AS AUTUMN THE CONGRESS COULD CALL AN EXTRAORDINARY MEETING TO OPPOSE THE NEW CONSTITUTION JUSTICE GADIS GADZHIYEV TOLD THE CONSERVATIVE DAILY PRAVDA THE REFERENDUM GAVE MR YELTSIN ONLY A CONFIRMATION OF HIS LEGITIMACY NOT THE RIGHT TO CHANGE THE CONSTITUTIONAL SYSTEM HE SAID PRESIDENTIAL AIDES AND SUPPORTERS ARE FLUSH WITH VICTORY THESE DAYS AND ARE URGING MR YELTSIN TO PRESS AHEAD THE PRESIDENT OUTLINED THREE IMMEDIATE PRIORITIES FOR THE ECONOMY TO IMPOSE TOUGH CREDIT AND MONETARY POLICY TO BEGIN CONTROVERSIAL LAND REFORM BASED ON A CONSTITUTIONALLY GUARANTEED RIGHT TO OWN LAND AND TO PUSH ON WITH PRIVATIZATION OF INDUSTRY A POTENTIAL SNAG LIES IN THE EXPENSIVE SOCIAL SPENDING PROMISED IN THE RUN UP TO THE REFERENDUM SUCH PROGRAMS MAY NOT BE FULFILLED QUICKLY ENOUGH TO KEEP THE PUBLIC SATISFIED FINANCE MINISTER BORIS FYODOROV TOLD THE EXPANDED CABINET MEETING THAT THE SIGNS OF ECONOMIC IMPROVEMENT ARE TENUOUS AND MUST NOT BE UNDERMINED ACCORDING TO MR ILLARIONOV ONLY 60 OF CENTRAL SPENDING PLANNED FOR THE THIRD QUARTER FOR EXAMPLE CAN BE COVERED BY PROJECTED INCOME AS A RESULT SOCIAL PROGRAMS WILL HAVE TO BE IMPLEMENTED MORE SLOWLY THAN PLANNED AND NO NEW SOCIAL PROGRAMS SHOULD BE STARTED IN THE NEXT SIX MONTHS MR FYODOROV REPORTEDLY SAID 9304300111 930430 SOUTHERN NATIONAL ACQUISITION LUMBERTON NC SOUTHERN NATIONAL CORP WHICH OPERATES BANKS IN NORTH AND SOUTH CAROLINA SAID IT ENTERED INTO A WRITTEN PACT TO BUY REGENCY BANCSHARES INC A BANK HOLDING COMPANY IN HICKORY NC FOR 504 MILLION UNDER THE AGREEMENT THE TRANSACTION WILL BE CONDUCTED AS A STOCK SWAP SOUTHERN NATIONAL WOULD EXCHANGE ABOUT 18 SHARES OF ITS STOCK FOR EACH OF THE NEARLY 14 MILLION OUTSTANDING SHARES AND OPTIONS OF REGENCY THE EXACT EXCHANGE RATIO WOULD BE DETERMINED JUST BEFORE CLOSING THE COMPANIES SAID 9304300110 930430 WHO'S NEWS DOMTAR NAMES GOBEIL CHAIRMAN MONTREAL PAUL GOBEIL WAS NAMED CHAIRMAN OF DOMTAR INC SUCCEEDING ROBERT DESPRES WHO HAD HELD THE NONEXECUTIVE POST ON AN INTERIM BASIS SINCE LAST JUNE MR DESPRES HAD FILLED IN FOR JEAN CAMPEAU WHO TOOK A LEAVE OF ABSENCE AS DOMTAR'S CHAIRMAN TO HEAD A GROUP CAMPAIGNING FOR QUEBEC SOVEREIGNTY THE MONTREAL FORESTPRODUCTS COMPANY LAST MONTH SAID MR CAMPEAU WOULDN'T STAND FOR REELECTION AS A DIRECTOR MR DESPRES REMAINS ON DOMTAR'S BOARD MR GOBEIL HAS HELD A VARIETY OF PROMINENT JOBS IN THE QUEBEC GOVERNMENT AND PRIVATE SECTOR 9304300109 930430 BIOPLASTY FILES FOR BANKRUPTCY MINNEAPOLIS AP BIOPLASTY INC A FORMER MANUFACTURER OF SILICONEGEL BREAST IMPLANTS FILED FOR BANKRUPTCY YESTERDAY CITING THE COSTS OF LAWSUITS FROM WOMEN WHO RECEIVED THE IMPLANTS DANIEL G HOLMAN CHIEF EXECUTIVE OFFICER SAID 4000 CASES OR POTENTIAL CASES ARE PENDING AGAINST THE MINNEAPOLISBASED MEDICAL PRODUCTS MAKER IT'S OUR INTENTION TO GET A SUCCESSFUL REORGANIZATION UNDER CHAPTER 11 OF THE FEDERAL BANKRUPTCY CODE HE SAID BIOPLASTY STOPPED MAKING SILICONE BREAST IMPLANTS IN MARCH 1992 THE FOOD AND DRUG ADMINISTRATION LAST SPRING RESTRICTED THE USE OF THE IMPLANTS WHICH HAVE BEEN KNOWN TO RUPTURE AND CAUSE IMMUNE SYSTEM DISORDERS AND OTHER MEDICAL PROBLEMS 9304300108 930430 OTC FOCUS INDEX ADVANCES 004 ON LATE BUYING AFTER BOUT OF SEESAWING TRADING SLOWS BY CAITLIN MOLLISON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BUYERS DOVE INTO THE ACTION NEAR THE CLOSE NUDGING NASDAQ STOCK PRICES MARGINALLY HIGHER THE OVERTHECOUNTER MARKET SPENT THE MORNING FALLING STEADILY ON SOME POOR ECONOMIC DATA BUT PRICES CLIMBED SLOWLY IN THE AFTERNOON AS THE SESSION'S END APPROACHED THE NASDAQ COMPOSITE INDEX JUMPED BACK AND FORTH ACROSS THE FENCE SEPARATING NEGATIVE AND POSITIVE TERRITORY THE COMPOSITE INDEX FINISHED 029 POINT OR 004 HIGHER AT 65845 FOLLOWING A FOURPOINT DROP INTRADAY THE BREADTH OF THE MARKET SHOWED ADVANCERS AHEAD OF DECLINING ISSUES 1302 TO 1296 TRADING SLACKENED AND TOTAL NASDAQ NATIONAL MARKET SYSTEM VOLUME WAS AT 166740000 SHARES COMPARED WITH 183280000 WEDNESDAY MARKET OBSERVERS SAID THE OTC MARKET IS STILL STRONGLY CHARACTERIZED BY NERVOUSNESS JEFF KENIS VICE PRESIDENT OF EQUITY TRADING AT ROBINSON HUMPHREY SAID IT WAS BACK AND FILLING WITH PEOPLE ON THE SIDELINES STEPPING IN ON WEAKNESS THIS IS A CLASSIC SIDEWAYS MARKET MEANWHILE BIG BOARD SHARES FIRMED AFTER LOSING GROUND EARLY IN THE DAY THE DOW JONES INDUSTRIAL AVERAGE ADDED 1162 POINTS OR 034 TO FINISH AT 342512 AFTER DROPPING ABOUT 20 POINTS IN THE MORNING ON A BOUT OF PROGRAM SELLING THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX GAINED 058 POINT OR 024 TO END AT 24248 BONDS STRENGTHENED AS THE DAY PROGRESSED WITH THE TREASURY'S BELLWETHER 30YEAR BOND UP NEARLY 1/2 POINT ITS YIELD IS NOW AT ABOUT 688 THE OTC MARKET HAD MOVED LOWER AS SEVERAL WEAK TECHNOLOGY AND HEALTH CARE ISSUES PRESSURED PRICES BUT THESE SECTORS NARROWED THEIR LOSSES TOWARD THE CLOSE TRADERS SAY MEDICALRELATED STOCKS SLIPPED ON NEWS THAT THE WHITE HOUSE IS STUDYING A PLAN TO BAR MALPRACTICE SUITS AGAINST DOCTORS AND HOSPITALS HEALTH PLANS SUCH AS INSURERS AND HEALTH MAINTENANCE ORGANIZATIONS WOULD BE SOLELY LIABLE FOR DAMAGES SOME DISAPPOINTING ECONOMIC NEWS ALSO DAMPED TRADING IN NASDAQ ISSUES EARLY IN THE SESSION THE GOVERNMENT ESTIMATED THAT THE GROSS DOMESTIC PRODUCT GREW IN THE FIRST QUARTER AT AN ANNUAL RATE OF JUST 18 THOUGH ECONOMISTS HAD LOOKED FOR A 23 INCREASE THE PROJECTED GROWTH RATE FOR THE QUARTER IS DOWN SHARPLY FROM THE 47 GAIN IN THE FOURTH QUARTER OTHER ECONOMIC DATA WERE MORE POSITIVE HOWEVER NEWHOME SALES FOR MARCH ROSE 48 THE STRONGEST INCREASE SINCE NOVEMBER ANALYSTS THOUGHT THE FIGURE WOULD TUMBLE FOR THE MONTH ANOTHER REPORT SHOWED THAT INITIAL STATE UNEMPLOYMENT CLAIMS FELL IN THE LATEST WEEK BY 7000 IN LINE WITH EXPECTATIONS GEORGE JENNISON COMANAGER OF OTC TRADING AT WHEAT FIRST BUTCHER & SINGER SAID THAT CASH LEVELS ARE STILL PRETTY HIGH BUT EVERYONE IS NERVOUS PENDING A FURTHER CORRECTION THE TRADER ADDED THAT INVESTORS ARE ALSO ANXIOUS THAT BANK STOCKS WHICH HAD BEEN LEADING THE MARKET ARE TOPPING OUT IN THE HEALTH CARE GROUP OXFORD HEALTH PLANS SLID 3/4 TO 48 1/2 MEDCO CONTAINMENT SERVICES FELL 1 1/8 TO 29 7/8 IN ACTIVE TRADING AND US HEALTHCARE SLIPPED 1 1/4 TO 46 OTHER ISSUES IN THE SECTOR ALSO DROPPED BIOGEN DECLINED 1 TO 33 1/4 AND SOMATOGEN WAS OFF 1 AT 12 1/4 MEDIMMUNE MEANWHILE IGNORED ITS BRETHREN AND JUMPED 2 TO 15 1/4 TECHNOLOGY ISSUES HAD BEEN LOWER FOR MOST OF THE DAY BUT PICKED UP STEAM NEAR THE END AMONG THE BIG GAINERS WERE ADOBE SYSTEMS WHICH GAINED 2 1/4 TO 57 1/4 ON HEAVY VOLUME APPLIED MATERIALS WHICH LEAPED 1 5/8 TO 42 1/4 CISCO SYSTEMS WHICH WAS 1 1/8 HIGHER AT 43 3/4 AND LEGENT UP 1 3/4 TO 28 INTEL ROSE 1 1/4 TO 95 3/4 AS REPORTED LATE WEDNESDAY INTEL HAS FILED SUIT AGAINST ADVANCED MICRO DEVICES SAYING THE COMPANY'S NEW CLONES OF THE INTEL 486 MICROPROCESSOR VIOLATE INTEL COPYRIGHTS ON THE NEW YORK STOCK EXCHANGE ADVANCED MICRO FELL 1 TO 29 1/8 COMSHARE A PROVIDER OF COMPUTER SOFTWARE AND SERVICES TUMBLED 1 TO 6 AFTER REPORTING A FISCAL THIRDQUARTER LOSS OF 63 CENTS A SHARE WIDER THAN THE 46CENT LOSS A YEAR EARLIER REVENUE ALSO DECLINED BANK AND OTHER FINANCE STOCKS ENDED MIXED MESA AIRLINES GAINED 1 1/4 TO 19 1/4 AFTER FIRST BOSTON UPGRADED ITS SHARES TO BUY FROM HOLD THE BROKERAGE FIRM CITED A RECENT STOCK PRICE PULLBACK AND ITS BELIEF THAT UNIT COSTS ARE GOING TO BE BETTER THAN EXPECTED AT THE AIRLINE IMPROVED FIRSTQUARTER RESULTS LIFTED MCCAW CELLULAR BY 1 TO 37 3/4 THE COMMUNICATIONS CONCERN POSTED A SEVENCENTASHARE LOSS FOR THE QUARTER COMPARED WITH A LOSS OF 56 CENTS A SHARE A YEAR EARLIER THE DAY'S MOST ACTIVE ISSUE TELECOMMUNICATIONS LOST 3/4 TO 19 IN OTHER AREAS EQUITABLE OF IOWA WAS UP 2 1/4 TO 55 3/4 THOUGH IT ANNOUNCED THE RETIREMENT OF CHAIRMAN JAMES W HUBBELL JR THE INSURER DECLARED A 2FOR1 STOCK SPLIT BAR CODE DATA COLLECTION EQUIPMENT FIRM PEAK TECHNOLOGIES PLUNGED 4 1/4 TO 6 3/4 FOLLOWING ITS ANNOUNCEMENT OF A FIRSTQUARTER LOSS OF TWO CENTS A SHARE COMPARED WITH NET INCOME OF FOUR CENTS A SHARE IN THE YEARAGO QUARTER THE COMPANY ALSO SAID IT ACQUIRED GROUP THREE ELECTRONIC'S DISTRIBUTION BUSINESS THOUGH TERMS WERE NOT DISCLOSED SUN TELEVISION & APPLIANCES SOARED 4 1/4 TO 41 3/4 ON FISCAL FOURTHQUARTER NET INCOME OF 68 CENTS A SHARE ON MORE SHARES THE OPERATOR OF RETAIL CONSUMER ELECTRONICS AND HOME APPLIANCE STORES EARNED 39 CENTS IN THE YEAREARLIER QUARTER 9304300107 930430 SEITEL'S 1STQUARTER NET FORECAST HOUSTON SEITEL INC SAID IT EXPECTS TO REPORT THAT FIRSTQUARTER NET INCOME FELL 40 TO 44 THE PROVIDER OF SEISMIC DATA TO THE PETROLEUM INDUSTRY EXPECTS NET IN THE RANGE OF 675000 OR 11 CENTS A SHARE TO 725000 OR 12 CENTS A SHARE COMPARED WITH 12 MILLION OR 22 CENTS A SHARE A YEAR EARLIER SEITEL SAID THE DECLINE RESULTS LARGELY FROM RECENT OPERATING EXPANSIONS THE PERSHARE DIFFERENCE REFLECTS A 9 INCREASE IN COMMON SHARES TO THE CURRENT TOTAL OF SIX MILLION THE COMPANY SAID IT EXPECTS TO REPORT THAT FIRSTQUARTER REVENUE ROSE ABOUT 10 TO 65 MILLION FROM 59 MILLION A YEAR EARLIER 9304300106 930430 TECHNOLOGY PROCESS TO REGENERATE AUDITORY CELLS MAY REVERSE HEARING LOSS NEW YORK CERTAIN TYPES OF HEARING LOSS LONG BELIEVED TO BE IRREVERSIBLE MAY EVENTUALLY BE CURABLE ABOUT 14 MILLION PEOPLE SUFFER FROM FULL OR PARTIAL HEARING LOSS CAUSED BY CONGENITAL DEAFNESS DAMAGE FROM LOUD NOISE OR POWERFUL ANTIBIOTIC DRUGS OR A CONDITION RELATED TO AGING IN EACH OF THESE CASES AUDITORY HAIR CELLS IN THE INNER EAR ARE DAMAGED AND IT HAS LONG BEEN BELIEVED THAT SUCH CELLS COULDN'T BE REGENERATED SCIENTISTS HOWEVER IN A NEW STUDY REPORTED IN TODAY'S SCIENCE JOURNAL SAID THAT THEY HAVE SUCCESSFULLY REGENERATED DAMAGED AUDITORY CELLS IN TISSUE CULTURES OF RATS USING RETINOIC ACID DERIVED FROM VITAMIN A FISH AND AMPHIBIANS PRODUCE THESE AUDITORY CELLS CONTINOUSLY AND THE CELLS CAN SELFREPAIR BUT AMONG MAMMALS INCLUDING HUMANS THE PRODUCTION OF SUCH CELLS CEASES AT THE EMBRYO STAGE DRAWING ON PREVIOUS RESEARCH WHICH SHOWED THAT AUDITORY HAIR CELLS COULD BE REGENERATED IN FISH AND BIRDS THE RESEARCH TEAM KILLED THE HAIR CELLS OBTAINED FROM A RAT'S EAR WITH CERTAIN TOXIC COMPOUNDS THE CELLS WERE THEN TREATED WITH RETINOIC ACID AND NEW CELLS WERE PRODUCED I'M EXTREMELY ENCOURAGED BY OUR RESULTS SAID DR THOMAS R VAN DE WATER OF THE ALBERT EINSTEIN COLLEGE OF MEDICINE IN NEW YORK ONE OF THE STUDY'S PRINCIPAL RESEARCHERS 9304300105 930430 NUTRISYSTEM CLOSES STORES AFTER BANKS SEIZE ACCOUNTS NEW YORK NUTRISYSTEM INC ABRUPTLY CLOSED ITS 283 COMPANYOWNED WEIGHTLOSS CENTERS AFTER BANKS SEIZED ITS CASH AND BANK ACCOUNTS PROMPTING ALARM AMONG ITS 857 US FRANCHISEES ALREADY COMPETITORS IN THE STAGNANT WEIGHTLOSS INDUSTRY ARE TRYING TO TAKE ADVANTAGE OF THE DISARRAY TO LURE AWAY NUTRISYSTEM CUSTOMERS CLOSELY HELD NUTRISYSTEM BASED IN BLUE BELL PA CLOSED THE CENTERS WEDNESDAY WHEN FIDELITY BANK AGENT FOR A SEVENBANK GROUP SEIZED THE COMPANY'S CASH AND BANK ACCOUNTS APART FROM THE US FRANCHISEE OPERATIONS THE COMPANY SAID THAT CANADIAN OPERATIONS REMAIN OPEN THE COMPANY HAD BEEN IN RESTRUCTURING NEGOTIATIONS WITH THE BANKS WHICH INCLUDE MELLON BANK AND CANADIAN IMPERIAL BANK OF COMMERCE NEW YORK PHONE CALLS TO NUTRISYSTEM YESTERDAY WENT UNANSWERED FIDELITY BANK A SUBSIDIARY OF FIRST FIDELITY BANCORP OF LAWRENCEVILLE NJ DIDN'T RESPOND TO REQUESTS FOR COMMENT MANY FRANCHISEES SAID THEY KNOW LITTLE MORE THAN WHAT'S IN NEWS REPORTS SAYING THEY HAVEN'T BEEN CONTACTED BY THE COMPANY I DON'T KNOW HOW I WILL GET MY PREPARED DIET FOOD FRETS CHARLES MATTESON WHO OWNS 14 FRANCHISES IN CONNECTICUT AND SOUTH CAROLINA SOME FRANCHISEES SAID THAT TWO PRIVATE INVESTOR GROUPS ARE BIDDING FOR NUTRISYSTEM ACCORDING TO RICHARD GORDON A PARTNER IN AN INVESTOR GROUP THAT RUNS 86 FRANCHISEE CENTERS THE GROUPS HAVE BEEN IN NEGOTIATIONS WITH THE COMPANY OVER THE PAST TWO MONTHS AND NOW ARE IN TALKS WITH THE BANKS 9304300104 930430 BUSINESS BRIEF WESTCOAST ENERGY INC CAPITALSPENDING PROGRAM TO BE MORE THAN TRIPLED WESTCOAST ENERGY INC SAYS IT PLANS TO MORE THAN TRIPLE ITS FIVEYEAR CAPITALSPENDING PROGRAM TO REACH 34 BILLION CANADIAN DOLLARS US267 BILLION FOLLOWING ITS C600 MILLION ACQUISITION OF UNION ENERGY INC LAST YEAR THAT TRANSACTION MADE WESTCOAST CANADA'S LARGEST NATURALGAS DISTRIBUTION UTILITY AND RESULTED IN THE COMPANY'S FIRSTQUARTER NET INCOME ALMOST DOUBLING FROM A YEAR EARLIER TO C964 MILLION OR C126 A SHARE WESTCOAST SAID IT PLANS TO SPEND C14 BILLION TO EXPAND UNION'S DISTRIBUTION PIPELINE AND GASSTORAGE NETWORK BETWEEN 1993 AND 1997 WITH THE BULK OF THAT EXPENDITURE TO COME DURING THE NEXT TWO YEARS THE COMPANY BASED IN VANCOUVER BRITISH COLUMBIA IS A GAS PIPELINE DISTRIBUTION AND STORAGE CONCERN WITH INTERESTS IN ELECTRICAL COGENERATION 9304300103 930430 ITALY'S ENI SAYS IT SHUFFLED EXECUTIVES AT FIVE OF ITS UNITS SPECIAL TO THE WALL STREET JOURNAL MILAN ENTE NAZIONALE IDROCARBURI A STATECONTROLLED ENERGY CONCERN ANNOUNCED A RESHUFFLING AND SLIMMING DOWN OF MANAGEMENT AT FIVE OF ITS SUBSIDIARIES THE ENI GROUP HAS BEEN HEAVILY IMPLICATED IN THE POLITICAL CORRUPTION SCANDAL THAT HAS RATTLED ITALY ENI SAID THE CHANGES ARE AIMED AT THE RENEWAL OF MANAGEMENT GROUPS THROUGH AN EXCHANGE OF EXPERIENCE FROM ONE COMPANY TO ANOTHER THE STRENGTHENING OF HUMAN RESOURCES INSIDE THE GROUP THE SLIMMING OF BOARDS OF DIRECTORS ON THE BASIS OF PROFESSIONALISM AND MERIT THE GROUP SAID ANGELO FERRARI WILL REPLACE PASQUALE DE VITA AS CHAIRMAN OF AGIPPETROLI SPA ENI'S OIL REFINING AND DISTRIBUTION UNIT MR DE VITA WILL BECOME HONORARY CHAIRMAN MR FERRARI HAS BEEN MANAGING DIRECTOR OF SNAM SPA ENI'S NATURAL GAS UNIT THE NUMBER OF AGIPPETROLI'S MANAGING DIRECTORS WILL BE REDUCED TO TWO FROM FOUR PIER FRANCESO DEL CONTE AND FRANCESO ZOFREA WILL BE KEPT ON ONE FORMER MANAGING DIRECTOR OF AGIPPETROLI PASQUALE MILILLO WILL BECOME CHAIRMAN OF ENI'S RESEARCH ARM ENIRICHERCHE SPA SUCCEEDING ROBERTO PIATTOLI MR PIATTOLI IN TURN WILL TAKE THE HELM OF ENGINEERING GROUP SNAMPROGETTI SPA IN THE WAKE FORMER CHAIRMAN MARIO MERLO BEING IMPLICATED IN THE NATION'S CORRUPTION SCANDAL AGIPPETROLI'S FOURTH MANAGING DIRECTOR GETULIO CURZI WILL RETIRE GIOVANNI PARILLO WILL LEAVE HIS POST AS MANAGING DIRECTOR OF CHEMICAL GROUP ENICHEM SPA TO BECOME CHAIRMAN OF ENIRISORSE SPA MR PARILLO TAKES OVER FOR FRANCESCO COFFIRINI WHO BECAME ENIRISORSE'S HONORARY CHAIRMAN EARLIER THIS WEEK FORMER ENI CHAIRMAN GABRIELE CAGLIARI ADMITTED TO PROSECUTORS THAT ENI PAID BRIBES TO POLITICAL PARTIES DURING HIS TENURE FROM 1989 TO 1992 MR CAGLIARI'S DISCLOSURE FOLLOWED THE ARREST EARLIER THIS YEAR OF SEVERAL OTHER TOP ENI OFFICIALS IN CONNECTION WITH THE SCANDAL AMONG THOSE ARRESTED WAS THE FORMER CHAIRMAN OF ENI'S OIL EXPLORATION AND PRODUCTION GROUP AGIP SPA WHICH IS SET TO BE PRIVATIZED NO CHANGES IN AGIP'S MANAGEMENT WERE ANNOUNCED 9304300102 930430 ELCOR UNIT PLANS CALIFORNIA PLANT DALLAS ELCOR CORP SAID ITS ELK CORP UNIT WILL BUILD A 30 MILLION PLANT IN CALIFORNIA TO MAKE ASPHALT ROOFING SHINGLES SIGNALING THE COMPANY'S INTENTION TO EXPAND IN MARKETS IN THE WEST ELCOR WHICH MAKES ROOFING AND INDUSTRIAL PRODUCTS SAID IT WILL FINANCE THE COST OF BUILDING THE PLANT WITH CASH FLOW AND THE PROCEEDS OF OTHER FINANCING OPTIONS IT'S EXPLORING BUT DECLINED TO SPECIFY THE COMPANY EXPECTS TO OPEN THE NEW PLANT IN LATE 1994 WE THINK CALIFORNIA WILL BE STARTING TO COME OUT OF THE RECESSION BY THEN AN ELCOR SPOKESMAN SAID 9304300101 930430 CORRECTION EUGENE ROSTOW SERVED LYNDON JOHNSON AS UNDERSECRETARY OF STATE THE TAGLINE ON WEDNESDAY FEATURE MISSTATED THIS INFORMATION 9304300100 930430 BUSINESS BRIEF TRANSCANADA PIPELINES LTD PARTNERSHIP ACCORD IS SET ON A BIG PIPELINE PROJECT TRANSCANADA PIPELINES LTD CALGARY ALBERTA SAID IT AGREED TO BECOME A 30 PARTNER WITH COASTAL CORP AND FLORIDA POWER IN THE PROPOSED US600 MILLION SUNSHINE PIPELINE PROJECT IN THE US SOUTHEAST THE 600MILELONG PIPELINE WOULD LINK MARKETS IN FLORIDA WITH SOURCES OF NATURAL GAS ON THE GULF COAST IT STILL REQUIRES STATE AND FEDERAL APPROVALS COASTAL A HOUSTONBASED ENERGY HOLDING COMPANY WILL HOLD A 40 INTEREST IN THE PROJECT AND FLORIDA POWER WILL HOLD 30 WHOLLY OWNED FLORIDA POWER IS THE PRINCIPAL SUBSIDIARY OF FLORIDA PROGRESS CORP ST PETERSBURG FLA 9304300099 930430 LEISURE & ARTS OPERA BEL CANTO DIVA'S US DEBUT BY WILLARD SPIEGELMAN HOUSTON WE KNEW SHE COULD SING NOW WE KNOW SHE CAN PERFORM CECILIA BARTOLI HAS MADE A SPECTACULAR SERIES OF NORTH AMERICAN CONCERT APPEARANCES SINCE 1991 LAST FRIDAY AT THE WORTHAM CENTER SHE MADE HER AMERICAN OPERATIC DEBUT AS ROSINA IN ROSSINI'S IL BARBIERE DI SIVIGLIA WITH THE HOUSTON GRAND OPERA WHILE IT MAY BE TEMPTING FATE TO PROGNOSTICATE ONE THINKS OF OPERA STARS WHO TURNED OUT TO BE JUST METEORS OR FLASHES IN THE PAN JIMMY THE GREEK WOULD PROBABLY GIVE GOOD ODDS ON LA BARTOLI NOW 26 SECURING A PERMANENT PLACE IN THE OPERATIC FIRMAMENT ROSINA IS ONE OF HER SIGNATURE ROLES IT POSES NO GRAND VOCAL CHALLENGES BUT ITS DRAMATIC ESSENCE HAS OFTEN ELUDED EXPERIENCED SINGERS MARIA CALLAS AMONG THEM MS BARTOLI BEGINS WITH THE GREAT ADVANTAGE OF LOOKING WHOLLY BELIEVABLE AS A YOUNG GIRL JUST COMING INTO MATURITY DISPLAYING THE INSTINCTS OF A BORN ACTRESS SHE EXPRESSES ROSINA'S MERCURIAL TEMPERAMENT WITH HER WHOLE BODY EYES HANDS FEET SHE STUDIED FLAMENCO AS A TEENAGER WORK TOGETHER TO CREATE A CHARACTER WHO CAN BE ALTERNATELY DOCILE OR DANGEROUS A KITTEN OR A LYNX DEPENDING ON HER MOOD AND WHEN SHE OPENS HER MOUTH THE NEWS GETS EVEN BETTER THE VOICE IS ALL OF A PIECE THE LOWEST NOTES OF A PLUMMY RICHNESS THE TOP FREE AND STRONG WITH NO BREAKS IN BETWEEN LIKE A SKILLED DANCER WHO LEAPS AND TURNS WITHOUT OBVIOUS PREPARATION MS BARTOLI THROWS OFF ROSSINI'S SCALES AND ROULADES AS IF THEY WERE THE MOST NATURAL THING IN THE WORLD MORE IMPORTANT HER TECHNICAL PROWESS IS WHOLLY AT THE SERVICE OF THE ROLE'S DRAMATIC DIMENSION HERE IN HOUSTON THE RAPIDFIRE ORNAMENTATION IN UNA VOCE POCO FA REVEALED THE IRON SELFASSURANCE THAT LIES JUST BELOW ROSINA'S DEMURE EXTERIOR IN THE ACT 2 SINGING LESSON WHICH HAS SERVED COUNTLESS PRIMA DONNAS AS AN OCCASION FOR VIRTUOSO DISPLAY MS BARTOLI REPLACED THE ORIGINAL ARIA CONTRO UN COR WITH ANOTHER ROSSINIAN SHOWPIECE THE DEMANDING TANTI AFFETTI FROM LA DONNA DEL LAGO THE SINGER NEGOTIATED THE COLORATURA FIREWORKS WITH PREDICTABLE APLOMB EVEN MORE IMPRESSIVE HOWEVER WAS HER ABILITY TO MAKE WHAT IS USUALLY A PURELY VOCAL MOMENT INTO A TELLING EXPRESSION OF ROSINA'S FRUSTRATED DESIRE IL BARBIERE NEEDS MORE THAN A WONDERFUL ROSINA TO COME ALIVE RARER EVEN THAN A GENUINE COLORATURA MEZZO IS A TENOR WHO CAN DISPLAY TECHNICAL AGILITY AND HONEYED TONES IN EQUAL MEASURE ERNESTO PALACIO A SPECIALIST IN THE ROSSINI LYRIC ROLES WAS AN ARDENT COUNT ALMAVIVA SWEETLY SERENADING ROSINA IN ACT 1 AND CONNIVING HIS WAY PAST HER GUARDIAN DR BARTOLO BASS ENZO DARA THROUGH THE REST OF THE ACTION AS USUAL THE COUNT'S ELABORATE LASTACT ARIA WAS CUT THE ORIGINAL ALMAVIVA MANUEL GARCIA WHO PROVIDED HIS OWN GUITAR ACCOMPANIMENT IN THE OPERA'S OPENING SCENE AND IN LATER YEARS WROTE A FAMOUS MANUAL ON SINGING TECHNIQUE HAS APPARENTLY PROVED TOO HARD AN ACT TO FOLLOW PAOLO GAVENELLI AN APPEALINGLY ROUGHHEWN FIGARO SUPPLIED THE VOCAL AND DRAMATIC HEFT NEEDED TO BALANCE ALMAVIVA'S ARISTOCRATIC DELICACY ION MARIN WHO MADE HIS MET DEBUT LAST FALL CONDUCTING ROSSINI'S SEMIRAMIDE OCCASIONALLY LET THE TEMPOS GET THE BEST OF HIM BUT BY AND LARGE BUILT ROSSINI'S ENSEMBLES WITH CONTROLLED ENERGY THE MAJOR PECULIARITY WAS THE PRODUCTION ITSELF A VERSION BY ANTHONY PILAVACHI OF AN EARLIER ONE BY WILLY DECKER FOR THE BONN OPERA FOR BETTER OR WORSE IT WAS A PRODUCTION WITH AN IDEA COSTUMES AND DECOR EXCLUSIVELY IN BLACK AND WHITE EXCEPT FOR ROSINA'S RED ROSE ALLUDED VAGUELY TO THE 1930S ONCE PAST THE OPENING SCENE OUTSIDE ROSINA'S WINDOW THE ACTION WAS CONFINED TO AN EERILY MENACING STUDYCUMMUSIC ROOM INTENDED TO SUGGEST DR BARTOLO'S HARSH IMPRISONMENT OF HIS YOUNG WARD THE SET A THREESIDED BOX SAT AT A PRECARIOUS ANGLE THREATENING LITERALLY TO UPSTAGE OR OVERTURN THE VOCALISTS IN THE OPERA'S FINAL MOMENTS THE NEWLY UNITED LOVERS PUSHED OVER THE MENACING CARICATURE OF ROSSINI LOOKING A LOT LIKE BARTOLO THAT HAD LOOMED ACROSS THE STAGE'S BACK WALL LIBERATION MEANT BREAKING DOWN BARRIERS IF ONE SUBSCRIBES TO WAGNER'S BELIEF IN THE TOTAL ARTWORK THE MERGING OF VISUAL EXPRESSIONISM AND OPERA BUFFA MIGHT SEEM LIKE A POSSIBILITY WORTH EXPLORING IN PRACTICE HOWEVER CONCEPTUAL SETTINGS RUN THE RISK OF CALLING NEEDLESS ATTENTION TO THEIR OWN NOVELTY AND AS WAS FREQUENTLY THE CASE IN HOUSTON LOCKING THE SINGERS INTO RESTRICTIVE OR DISTRACTINGLY FUSSY STAGE BUSINESS RATHER THAN ALLOWING BLOCKING AND GESTURE TO GROW NATURALLY FROM THE MUSIC FINALLY HOWEVER IT WAS NOT A PRODUCTION OF IL BARBIERE BUT MS BARTOLI WHOM HOUSTONIANS AND OUTOFTOWNERS CAME TO SEE AND HEAR DAVID GOCKLEY HGO'S GENERAL DIRECTOR HAD THE FORESIGHT AND GOOD SENSE TO SIGN HER UP THREE YEARS AGO BEFORE MOST OF HER RECORDS HIT THE STANDS THESE SPLENDID DISKS OF MOZART ROSSINI AND 18THCENTURY SONGS CONVEY HER INSTINCTIVE MUSICALITY HER TECHNICAL MASTERY AND HER GIFT FOR GIVING FRESH LIFE TO OLD CHESTNUTS THEY ALSO SUGGEST A VOICE LARGER THAN THE ONE THAT DURING SEVERAL OF LAST FRIDAY'S ENSEMBLES WAS OVERWHELMED BY THE OTHER SINGERS OR THE ORCHESTRA SOME EXPERIENCED LISTENERS WONDERING WHETHER MS BARTOLI'S INSTRUMENT IS SIZABLE ENOUGH TO FILL THE LARGEST OPERA HOUSES HAVE SUGGESTED THAT HER TRUE METIER MAY BE THAT OF A RECITALIST NEW YORKERS WILL BE ABLE TO TEST THIS PROPOSITION DURING THE 19941995 SEASON WHEN MS BARTOLI MAKES HER METROPOLITAN OPERA DEBUT AS DESPINA IN COSI FAN TUTTE PERHAPS THE VOICE WILL GROW THIS IS NOT UNHEARD OF AND IT IS CLEAR FROM PUBLISHED CONVERSATIONS WITH THE SINGER THAT SHE MAY BE HOLDING BACK NOW IN ORDER TO AVOID THE DANGERS OF ATTEMPTING TOO MUCH TOO SOON IN ANY EVENT IT'S HARD TO IMAGINE THAT MS BARTOLI WILL BE CONTENT TO CONFINE HER ENERGIES TO THE CONCERT HALL THE SOUND IS INDEED MAGICAL BUT LISTENING TO THIS SUPERBLY COMMUNICATIVE SINGER IS ONLY PART OF THE PLEASURE TALK OF A TOTAL ARTWORK CECILIA BARTOLI MAY BE THE CLOSET THING WE HAVE TO THE GENUINE ARTICLE MR SPIEGELMAN IS CHAIRMAN OF THE ENGLISH DEPARTMENT AT SOUTHERN METHODIST UNIVERSITY IN DALLAS 9304300098 930430 LETTERS TO THE EDITOR ASBESTOS REMOVAL AND RIPOUT ARTISTS' IN REGARD TO YOUR MARCH 22 ARTICLE THOUGH RISK FALLS REMOVING ASBESTOS DOESN'T GUARANTEE SUBSTANCE IS GONE DESPITE ALL THE DETAILED FEDERAL STATE AND LOCAL ASBESTOS CONTROL REGULATIONS THAT PRESUMABLY PROTECT THE PUBLIC UNSCRUPULOUS RIP AND SKIP OPERATORS CONTINUE TO PLAGUE THE INDUSTRY ASBESTOS ABATEMENT CONTRACTORS PURPOSEFULLY SCHEDULE THE BULK OF THEIR ABATEMENT ACTIVITIES DURING OFF HOURS OR WEEKENDS PRECISELY BECAUSE THEY KNOW THAT NO GOVERNMENT INSPECTOR OR BUILDING OWNER REPRESENTATIVE IS GOING TO SHOW UP AT A JOB SITE IN THE MIDDLE OF THE NIGHT TO VERIFY PROPER PROCEDURES ARE BEING FOLLOWED EVEN IF AN INSPECTOR DOES SHOW UP IT WON'T BE FOR LONG ONCE THE INSPECTOR LEAVES SLOPPY WORK PRACTICES RESUME AND IT DOESN'T STOP THERE MANY REGULATIONS REQUIRE AIR SAMPLING BY SOCALLED INDEPENDENT AIRMONITORING FIRMS HOWEVER INDEPENDENCE IS IN NAME ONLY IN PRACTICE ASBESTOS ABATEMENT COMPANIES WILL REFER TO THE BUILDING OWNER CERTAIN MONITORING FIRMS WITH WHOM THEY HAVE COZY RELATIONSHIPS IT STARTS BY THE ABATEMENT CONTRACTOR REFERRING BUILDING ASBESTOS HAZARD ASSESSMENTS OR AIRMONITORING PROJECTS TO THE MONITORING FIRM THEY SUGGEST THAT MUCH MORE WORK WILL FOLLOW FOR THOSE WHO ARE NOT OVERLY ZEALOUS THE MONITORING FIRMS WILL RECOMMEND THESE SAME ABATEMENT CONTRACTORS TO THEIR CLIENTS WHICH IN TURN LEADS TO MORE REFERRALS FOR MONITORING WORK THE PRIMARY INCENTIVE BEHIND ASBESTOS ABATEMENT IN BUILDINGS IS NOT AN ALTRUISTIC CONCERN FOR PUBLIC SAFETY RATHER THE MOTIVATION IS AVOIDANCE OF LAWSUITS OR PROPERTY VALUE RETENTION BUILDING OWNERS COULD CARE LESS IF THE CONTRACTOR THEY HIRE DOES A GOOD JOB OR NOT THEY JUST WANT THAT STUFF REMOVED QUIETLY WITHIN BUDGET AND QUICK ENOUGH TO ALLOW REOCCUPANCY BY MONDAY MORNING AND THIS APPLIES TO BOTH PRIVATE AND PUBLIC SECTOR BUILDINGS IT IS NO SURPRISE THAT AMBIENT LEVELS OF ASBESTOS INCREASE FOLLOWING AN ABATEMENT ACTION THE CAUSE HOWEVER CAN BE EXPLAINED BY TWO SIMPLE WORDS THAT EVEN THE SCIENTIFICALLY UNINITIATED CAN UNDERSTAND HUMAN GREED YOU EXTRAPOLATE FROM A CONTROVERSIAL STUDY IN SCIENCE MAGAZINE AND AN EQUALLY CONTROVERSIAL REPORT OF THE HEALTH EFFECTS INSTITUTE BOTH OF YOUR REFERENCES HAVE RECEIVED SIGNIFICANT SUPPORT FROM FORMER MANUFACTURERS OF ASBESTOS PRODUCTS ALTHOUGH THE EPA SHIFTED ITS EMPHASIS IN RESPONSE TO PRESSURES FROM THE BUSH WHITE HOUSE THE AGENCY NEVER BACKED AWAY FROM ITS RECOMMENDATION TO BUILDING OWNERS TO INSPECT THEIR BUILDINGS FOR THE PRESENCE OF ASBESTOS AND TO MANAGE IT CAREFULLY TO PREVENT DAMAGE TO THE MATERIAL DURING BUILDING MAINTENANCE WE HAVE URGED THE EPA TO REQUIRE NOT RECOMMEND INSPECTION THIS WOULD ELIMINATE A GAPING LOOPHOLE IN COMMUNICATING THE PRESENCE OF ASBESTOS TO WORKERS WHO ENTER BUILDINGS TO REPAIR OR CLEAN THE FACILITY NOT ABATE OR REMOVE ASBESTOS WE ALSO BELIEVE THAT ABATEMENT IS A TEMPORARY FIX AND THAT ASBESTOS MUST ULTIMATELY BE REMOVED TO SAFELY RESTORE A BUILDING TO ITS MAXIMUM USEFULNESS YOUR ARTICLE PARROTS THE THEMES OF THE FORMER ASBESTOS PRODUCTS INDUSTRY WHOSE SINGLE DRIVING INTEREST IS TO MINIMIZE FINANCIAL LOSS AND LIABILITY IT DOES NOTHING TO CLARIFY THE ISSUE OR INFORM THE READER 9304300097 930430 LEISURE & ARTS ON SPORTS PRAIRIE BAYOU IS FAVORITE IN ROSE RUN BY FREDERICK C KLEIN LOUISVILLE KY THE UPPER REACHES OF THE THOROUGHBRED RACING GAME GENERALLY FOLLOW THE MAXIM THEM THAT HAS GETS BUT RARELY AS MUCH AS THIS YEAR JOHN ED ANTHONY WHOSE LUMBER COMPANY OWNS A FAIRSIZED CHUNK OF ARKANSAS LOOKED TOWARD THE SPRING WITH A HALFDOZEN HORSES THAT WERE CONSIDERED LEGITIMATE KENTUCKY DERBY CONTENDERS THE POSSIBILITY LOOMED THAT HIS LOBLOLLY STABLE COULD CLAIM THE WINNER'S PURSE AND MAYBE SECOND THIRD OR FOURTHPLACE BOOTY TO BOOT OR GASP ALL OF THEM SUCH AN OUTCOME HOWEVER WOULD HAVE STRETCHED THE MAXIM UNDULY AND WAS NOT TO BE THE SPORT'S VICISSITUDES WHICH GRIND THE MIGHTY AND COMMON ALIKE TOOK THEIR TOLL AND ALL ANTHONY WILL HAVE GOING FOR HIM AT CHURCHILL DOWNS TOMORROW IN THE 119TH RUNNING OF AMERICA'S CLASSIC FOR THREEYEAROLDS WILL BE A SINGLE ANIMAL BUT WEEP NOT BECAUSE HE ISN'T HIS PRAIRIE BAYOU WINNER OF THE JIM BEAM AND BLUE GRASS STAKES IS LIKELY TO BE THE BETTING FAVORITE WHEN THE GATE SPRINGS OPEN HERE AT ABOUT 530 PM I'M SATISFIED WITH THE WAY THINGS HAVE GONE SAYS THE DARKHAIRED 54YEAROLD ANTHONY HAVING THE PROBABLE DERBY FAVORITE IS ABOUT ALL A REASONABLE MAN CAN EXPECT THE TRUTH IS THAT ANY DERBY ENTRY ANYTIME WOULD DELIGHT 99 OF THE NATION'S RACEHORSEOWNING POPULATION BUT THIS ONLY UNDERSCORES THE REMARKABLE CROP OF THREEYEAROLDS THAT LOBLOLLY BROUGHT TO THE TRACKS THIS YEAR BESIDES PRAIRIE BAYOU THERE'S THE STAKESWINNING DALHART WHOM ANTHONY THINKS MIGHT EVENTUALLY BE THE BEST OF THE BUNCH MARKED TREE ANOTHER STAKES WINNER AND DRY BEAN LITTLE ALUM OZAN AND OVER JACK MOUNTAIN ALL OF WHOM HAVE SHOWED GOOD FOOT AT ONE TIME OR ANOTHER SO DEEP IS HIS STABLE THAT AT A RECENT PRESS CONFERENCE ANTHONY WAS ASKED IF HE WAS EMBARRASSED BY HIS EQUINE RICHES NOT AT ALL HE REPLIED IN LIGHT OF OUR HISTORY IN THE DERBY I THINK WE COULD USE A LITTLE LUCK THAT HISTORY ISN'T ESPECIALLY LONG BUT IT IS SAD AND SHOWS WHY RACING STANDS WITH GOLF AS SPORT'S GREAT HUMBLER WITH ABOUT 150 HORSES ON ITS ROSTER INCLUDING 50 RUNNERS 21YEAROLD LOBLOLLY STABLE PROBABLY OUTMOUNTS THE US CAVALRY AND ITS YELLOWANDBROWN SILKS HAVE BEEN BORNE BY SUCH CHAMPIONS AS COX'S RIDGE TEMPERENCE HILL AND PINE BLUFF BUT IF IT DIDN'T HAVE BAD LUCK IN THE DERBY IT WOULDN'T HAVE ANY AT ALL IN 1984 LOBLOLLY HAD TWO HIGHLY RATED DERBY ENTRIES IN PINE CIRCLE AND VANLANDINGHAM BUT THEY FINISHED SIXTH AND 16TH RESPECTIVELY AND VANLANDINGHAM CAME OUT OF THE RACE WITH A BROKEN BONE ALBEIT A MINOR ONE IN 1987 THE STABLE'S DEMONS BEGONE WENT TO THE POST AS 2TO1 FAVORITE BUT BLED FROM HIS NOSTRILS EARLY ON AND HAD TO BE PULLED UP HE WAS THE FIRST DERBY FAVORITE NOT TO FINISH THE RACE AND HE NEVER REGAINED HIS FORM RACEGOERS LOVE HARDLUCK STORIES SO SUCH MISFORTUNES HAVE BOOSTED LOBLOLLY'S STOCK AMONG AFICIONADOS AS SATURDAY'S GO APPROACHES ANOTHER POINT IN ANTHONY'S FAVOR IS THAT OVER THE YEARS HE HAS ENRICHED HIS SPORT BY APPROPRIATING SOME OF HIS HOME STATE'S FLAVORFUL PLACE NAMES FOR HIS STEEDS THE OXYMORONICSOUNDING PRAIRIE BAYOU FOR INSTANCE IS NAMED FOR A CREEK IN SOUTH CENTRAL ARKANSAS WHILE MARKED TREE IS A TOWN IN THE STATE'S NORTHEAST SECTION NEAR MEMPHIS TENN DALHART BY CONTRAST IS NAMED FOR A TEXAS TOWN THAT WAS VISITED FREQUENTLY BY ANTHONY'S MATERNAL GRANDFATHER A RAILROAD MAN I THOUGHT I'D GIVE ARKANSAS A REST WITH THAT ONE EXPLAINS ANTHONY WHOSE HOME IS IN HOT SPRINGS A HORSE OF COURSE IS JUDGED BY HOW HE RUNS NOT WHAT HE IS CALLED AND WHEN 1993 DAWNED DALHART SEEMED TO BE THE ACE IN THE ANTHONY DECK PURCHASED AS A YEARLING FOR 85000 THE SON OF FORTY NINER THE DERBY RUNNERUP IN 1988 HAS THE KIND OF QUICKNESS THAT IMMEDIATELY CATCHES EVERYONE'S EYE ANTHONY NOTES THE COLT CONFIRMED THAT IMPRESSION WITH IMPRESSIVE WINTER VICTORIES AT NEW YORK'S AQUEDUCT AND OAKLAWN PARK THE HOT SPRINGS TRACK WHERE ANTHONY'S RACERS WINTER DALHART IS SMALLISH THOUGH AND AS A LATEMAY FOAL IS YOUNG FOR A THREEYEAROLD AFTER HE STRAGGLED IN NINTH IN HIS FINAL PREDERBY TEST THE APRIL 17 ARKANSAS DERBY A LENGTHY REST WAS PRESCRIBED THAT ELEVATED PRAIRIE BAYOU A STRAPPING CHESNUT SON OF LITTLE MISSOURI A LOBLOLLY STAKES WINNER OF SEVERAL YEARS AGO TO THE STATUS OF STABLE STAR AS A LATE RUNNER PRAIRIE BAYOU DIDN'T SHOW THE INSTANT PROMISE OF DALHART AND AS A TWOYEAROLD HE DISPLAYED SIGNS OF BEING WHAT HORSEMEN CALL GROWTHY RAMBUNCTIOUS IN A WAY THAT SOMETIMES COMES WITH QUICK MATURITY THUS HE WAS GELDED HOWEVER THAT PROCEDURE MAY HAVE AFFECTED HIS PSYCHE IT HELPED HIS RUNNING AND HIS RECORD OF SIX WINS IN NINE STARTS WITH PURSES OF 833786 THRUST HIM TO THE DERBY FOREFRONT PRAIRIE BAYOU IS A SINGLERUN HORSE BUT THAT RUN IS THE BEST OF ANY HORSE I'VE OWNED ANTHONY TESTIFIES HE ADDS IT TAKES A BIG STRONG ANIMAL TO WIN THE DERBY WHICH REALLY IS LONGER AT 1 1/4 MILES THAN THREEYEAROLDS OUGHT TO BE RUNNING THIS TIME OF YEAR THERE'S NO DOUBT IN MY MIND THAT PRAIRIE BAYOU HAS THE STRENGTH TO SUCCEED HERE WHETHER HE HAS THE TALENT OR LUCK WE'LL SEE MARKED TREE IS AT CHURCHILL DOWNS TOO AND IT WASN'T UNTIL YESTERDAY THAT ANTHONY AND TRAINER TOM BOHANNON DECIDED NOT TO PUT HIM IN THE DERBY THE COLT WON THE REMINGTON PARK DERBY AND FINISHED A GAINING THIRD IN THE WOOD MEMORIAL BUT OWNER AND TRAINER FINALLY REASONED THAT TWO HARD APRIL OUTINGS WERE ENOUGH HE'S A POSSIBLE ENTRANT IN THE MAY 15 PREAKNESS ANTHONY HAS BROUGHT LARGE ENTOURAGES TO DERBYS PAST BUT IN THE INTEREST OF CHANGING HIS LUCK HE'S LIMITING THIS ONE TO IMMEDIATE FAMILY ALONG WITH OTHERS HE'S MINDFUL THAT THE 1993 TRIUMPHS OF FELLOW ARKANSANS JERRY JONES OWNER OF THE SUPER BOWLWINNING DALLAS COWBOYS AND BILL CLINTON MIGHT GIVE HIS EFFORT ANOTHER BOOST WITH FORTUNE IF GOOD THINGS COME IN THREES LIKE BAD ONES YOU HAVE TO LIKE MY CHANCES HE CONCLUDES 9304300096 930430 TWO MAJOR CHAINS ARE ACCUSED IN SUIT OF SALES DECEPTION BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS WALMART STORES INC AND TOYS R US INC WERE ACCUSED OF DECEPTIVE TRADE PRACTICES IN A CIVIL LAWSUIT FILED IN A TEXAS STATE COURT THE SUIT ALLEGES THAT BOTH COMPANIES ROUTINELY MISREPRESENT AND SELL AS NEW MERCHANDISE THAT HAS BEEN RETURNED AND SOMETIMES DAMAGED WALMART SAID WE HAVE DONE NOTHING FRAUDULENT AND WILL VIGOROUSLY DEFEND THE SUIT TOYS R US IN A RELEASE DIDN'T ADDRESS THE QUESTION OF SELLING RETURNED MERCHANDISE AS NEW BUT SAID TO THE BEST OF OUR KNOWLEDGE NO TOYS R US EMPLOYEE HAS EVER KNOWINGLY ALLOWED DAMAGED MERCHANDISE TO BE SOLD FROM OUR SHELVES THE COMPANY ADDED THAT BECAUSE THE MERCHANDISE IS ACCESSIBLE TO CUSTOMERS THE POSSIBILITY EXISTS SOME PRODUCTS MAY HAVE BEEN TOUCHED BY CUSTOMERS BOTH COMPANIES CITING THEIR RETURNS POLICIES ALSO SAID THEY HAD INVITED THE PLAINTIFF DALLAS ATTORNEY MARC STANLEY TO RETURN THE ITEMS FOR REFUND OR REPLACEMENT THEY HAVE A GOOD RETURN POLICY BECAUSE THEY'LL SELL THE SAME DEFECTIVE ITEMS TO THE NEXT POOR SCHNOOK WHO COMES IN THE STORE SAID STEPHEN GARDNER THE ATTORNEY REPRESENTING MR STANLEY MR GARDNER NOW IN PRIVATE PRACTICE DEVELOPED A FEARSOME REPUTATION AS THE HEAD OF CONSUMER PROTECTION FOR THE TEXAS ATTORNEY GENERAL'S OFFICE IN THE LATE 1980S HE OFTEN LED MULTISTATE ATTACKS ON RETAILING PRACTICES AT SUCH GIANTS AS NESTLE SA GENERAL MILLS INC MOBIL CORP QUAKER OATS CO KELLOGG CO AND GENERAL MOTORS CORP AMONG OTHERS THE CURRENT SUIT WHICH SEEKS CLASSACTION STATUS ALLEGES THAT ITEMS RANGING FROM CRIB TOYS TO A DEEPFRYER THAT MR STANLEY BOUGHT AT A WALMART AND AT A TOYS R US BOTH IN THE DALLAS AREA TURNED OUT TO BE USED WITH SEVERAL ITEMS MISSING PIECES AMONG OTHER INSTANCES THE SUIT ALSO SAYS ANOTHER UNIDENTIFIED MAN RETURNED A DEFECTIVE COFFEE MAKER TO A WALMART STORE EXPLAINING THAT IT HAD GIVEN HIS WIFE AN ELECTRICAL SHOCK HE THEN ALLEGEDLY SAW EMPLOYEES RESEAL THE BOX AND PUT IT RIGHT BACK ON THE SHELF FOR RESALE THOUGH THE INSTANCES CITED ARE IN TEXAS MR GARDNER SAID HE AND MR STANLEY HAVE RECEIVED SIMILAR COMPLAINTS FROM CONSUMERS IN OTHER STATES WHICH HE SAID ALSO WILL BE PURSUED A SPOKESWOMAN FOR THE CONSUMER PROTECTION DIVISION OF THE TEXAS ATTORNEY GENERAL'S OFFICE SAID IT HADN'T RECEIVED ANY COMPLAINTS ABOUT SUCH RESALES AT EITHER WALMART OR TOYS R US STORES 9304300095 930430 JUDGE BACKS SEC IN SETTING PENALTY AGAINST BROKERS BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION WON A 606 MILLION JUDGMENT AGAINST TWO FORMER PRINCIPALS AND A FORMER TRADER OF A DEFUNCT PENNYSTOCK BROKERAGE FIRM THE JUDGMENT REPRESENTS THE GROSS TRADING PROFITS OF THE BROKERAGE FIRM GRAYSTONE NASH INC WHICH WAS BASED IN BLOOMFIELD NJ UNTIL ITS CLOSURE IN DECEMBER 1988 PENNY STOCKS ARE LOWPRICE THINLY TRADED ISSUES THAT ARE HIGHLY SPECULATIVE US DISTRICT JUDGE ALFRED WOLIN OF NEWARK NJ JUSTIFIED THE LARGE JUDGMENT BY SAYING THE PROBLEM IN THIS CASE IS FINDING ANY ACTIVITY THAT WAS LAWFUL THE SEC ALLEGED AND JUDGE WOLIN AGREED THAT THE FIRM INTENTIONALLY ENGAGED IN SYSTEMIC AND PERVASIVE FRAUD IN ITS UNDERWRITING OF SEVERAL PUBLIC STOCK OFFERINGS IN 1987 AND 1988 AMONG THOSE WAS A 1987 OFFERING FOR A COMPANY CALLED WINE INC FOR WHICH GRAYSTONE NASH WAS DISCIPLINED BY THE NATIONAL ASSOCIATION OF SECURITIES DEALERS IN 1991 THE NASD SAID THE COMPANY TREATED ITS CUSTOMERS LIKE A PARKING LOT FOR WINE UNITS THE JUDGMENT WAS FILED IN FEDERAL COURT IN NEWARK AGAINST THOMAS V ACKERLY FORMERLY CHAIRMAN AND PRESIDENT OF GRAYSTONE NASH RICHARD J ADAMS THE FIRM'S FORMER EXECUTIVE VICE PRESIDENT AND EXTRADER VINCENT R ACKERLY JR BROTHER OF THOMAS ACKERLY NEITHER ACKERLY COULD BE REACHED FOR COMMENT MR ADAMS NOW WORKING AT BERKELEY SECURITIES CORP IN NEW YORK COULDN'T BE REACHED FOR COMMENT SEC LAWYER BRUCE BETTIGOLE OF WASHINGTON SAID THE THREE MEN REPRESENTED THEMSELVES IN THE CASE BUT WEREN'T ALLOWED TO PRESENT A DEFENSE BECAUSE THEY HAD ASSERTED THEIR RIGHTS AGAINST SELFINCRIMINATION DURING PRETRIAL QUESTIONING MR BETTIGOLE SAID HE IS HOPEFUL THAT THE SEC CAN COLLECT A PORTION OF THE JUDGMENT I DON'T KNOW ABOUT THE WHOLE 60 MILLION BUT WE'RE GOING TO DO THE BEST WE CAN HE SAID GRAYSTONE NASH ONCE HAD 35 OFFICES ACROSS THE US INCLUDING A BOCA RATON FLA BRANCH WITH MORE THAN 100 BROKERS 9304300094 930430 FAA REQUIRES SOME PROPELLERS TO BE INSPECTED BY BRUCE INGERSOLL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL AVIATION ADMINISTRATION SPURRED BY THE AIR CRASH THAT KILLED SOUTH DAKOTA GOV GEORGE MICKELSON ORDERED THE INSPECTION OF ALL PROPELLERS ON MITSUBISHI MU2B60 PLANES FOR CRACKS AND OTHER FLAWS THE AGENCY ALSO INTENDS TO REQUIRE EVENTUAL INSPECTION OF SIMILAR FOURBLADED PROPELLERS ON 6000 OTHER CORPORATE AND COMMUTER PLANES ANTHONY BRODERICK ASSOCIATE FAA ADMINISTRATOR SAID YESTERDAY THE PROPELLERS ARE MANUFACTURED BY HARTZELL PROPELLER INC PIQUA OHIO THE ORDER WAS PROMPTED BY TWO INCIDENTS INVOLVING TWINENGINED MITSUBISHI MU2B60 TURBOPROP PLANES THE GOVERNOR'S STATEOWNED PLANE CRASHED APRIL 19 NEAR DUBUQUE IOWA AFTER A PROPELLER BLADE APPARENTLY BROKE OFF ALL EIGHT PEOPLE ABOARD DIED SIGNS OF METAL FATIGUE WERE LATER FOUND IN PART OF THE PROPELLER HUB THE CRASH RESEMBLED AN INCIDENT OVER UTICA NY IN AUGUST 1991 WHEN A PROPELLER BLADE TORE OFF AND PIERCED THE FUSELAGE OF ANOTHER MU2B60 THE PILOT MANAGED TO LAND THE PLANE SAFELY THE MU2B60 INSPECTIONS INCLUDING THE REWORKING OF PROPELLER HUBS ARE EXPECTED TO TAKE THREE MONTHS MR BRODERICK SAID INSPECTION OF THE OTHER AIRCRAFT WASN'T DEEMED AS URGENT BECAUSE THEY ARE LIGHTER THAN MU2B60 TURBOPROPS AND ARE EQUIPPED WITH LOWERTHRUST ENGINES SIX WEEKS BEFORE THE IOWA CRASH THE NATIONAL TRANSPORTATION OARD HAD WARNED THE FAA THAT THE HARTZELL PROPELLERS ON MU2B60S COULD SEPARATE IN FLIGHT AND CAUSE A CATASTROPHIC ACCIDENT BUT THE AGENCY BALKED AT ISSUING A SOCALLED AIRWORTHINESS DIRECTIVE SAYING INSPECTIONS EVERY 3000 HOURS OF FLYING TIME AS RECOMMENDED BY THE MANUFACTURER WOULD BE SUFFICIENT THERE ARE 116 MU2B60 AIRCRAFT IN SERVICE INCLUDING 80 IN THE US MR BRODERICK SAID THOSE WITH MORE THAN 3000 HOURS ON THEM ARE TO BE INSPECTED WITHIN THE NEXT 10 HOURS OF FLYING TIME WHILE THOSE WITH LESS FLIGHT TIME ARE TO BE INSPECTED WITHIN THE NEXT 200 HOURS ANY BADLY BENT BLADES ARE TO BE REPLACED ON A TELECONFERENCE CALL WITH REPORTERS MR BRODERICK DEFENDED THE FAA'S HANDLING OF THE MATTER HE SAID THAT HARTZELL HAS MANUFACTURED 35000 PROPELLERS INCLUDING THREEBLADED AND FOURBLADED PROPELLERS OVER THE LAST TWO DECADES AND THAT ONLY TWO HAVE EVER HAD A PROBLEM MOST MU2B60S ARE RELATIVELY OLD EXECUTIVETYPE PLANES AND ONEFIFTH OF THEM HAVE BEEN INVOLVED IN A VARIETY OF INCIDENTS INCLUDING MECHANICAL PROBLEMS BUT SAFETY INVESTIGATORS HAVE BEEN UNABLE TO FIND A COMMON THREAD IN THE INCIDENTS THAT SUGGESTS A DESIGN FLAW OR SYSTEMIC PROBLEM MR BRODERICK SAID JIM BROWN CHAIRMAN OF CLOSELY HELD HARTZELL SAID YESTERDAY WE DID EXHAUSTIVE TESTING AFTER THE '91 INCIDENT AND I NEED NOT TELL YOU THAT WE'RE DOING AN EXHAUSTIVE REAPPRAISAL NOW SO FAR HAVE FOUND NO SCIENTIFIC RATIONAL EXPLANATION HERE WE'RE OPERATING ON WHAT WE BELIEVE TO BE BENIGN STRESS LEVELS HE SAYS HARTZELL'S TESTS SO FAR SHOW THE STRESSES WERE VERY MODEST WAY WAY LOW HE ADDS WE'RE WORKING THE ISSUE THIS AIRWORTHINESS DIRECTIVE IS IN FURTHERANCE OF WORKING THE ISSUE WE'RE IN OUR 76TH YEAR OF MAKING PROPELLERS WE'VE BEEN DOING IT A LONG TIME AND I LIKE TO THINK MOST OF IT'S BEEN DONE RIGHT 9304300093 930430 BUSINESS BRIEF BACHMAN INFORMATION SYSTEMS INC SOFTWARE DEVELOPER RECORDS FISCAL THIRDQUARTER LOSS BACHMAN INFORMATION SYSTEMS INC REPORTED A FISCAL THIRDQUARTER LOSS OF 25 MILLION OR 31 CENTS A SHARE COMPARED WITH YEARAGO EARNINGS OF 586000 OR SEVEN CENTS A SHARE THE PRIOR YEAR'S QUARTER INCLUDED A TAXLOSS CARRYFORWARD OF 165000 OR TWO CENTS A SHARE REVENUE FELL 33 TO 83 MILLION FROM 125 MILLION THE BURLINGTON MASS SOFTWARE COMPANY EARLIER THIS MONTH CAUTIONED ANALYSTS THAT IT WOULD DECLARE A WIDERTHANEXPECTED LOSS AND THAT REVENUE WOULD BE LOWER THAN ANTICIPATED PART OF ITS THIRDQUARTER PROBLEMS ANALYSTS SAID IS THE RESULT OF A SWITCH IN FOCUS FROM DEVELOPING MAINFRAME SOFTWARE TO SYSTEMS THAT ENABLE DESKTOP MACHINES TO WORK IN TANDEM WITH LARGER COMPUTERS 9304300092 930430 POTOMAC WATCH IN WAR DEBATE ON BOSNIA ECHOES OF ELLSBERG BY PAUL A GIGOT THE LAST TIME A YOUNG LIBERAL PRESIDENT PONDERED WAR IN 1962 TWO PAPERS WERE PRODUCED TO FRAME THE DEBATE AT THE PENTAGON THE PAPER OPPOSING INTERVENTION IN VIETNAM WAS WRITTEN BY ELMO ZUMWALT THEN A NAVY CAPTAIN THE OTHER PAPER ARGUED THAT THE US SHOULD SEND SIGNALS TO HANOI ESCALATING ITS COMMITMENT BIT BY BIT UNTIL THE COMMUNISTS CAME TO HEEL THE AUTHOR WAS A BRILLIANT YOUNG CIVILIAN NAMED DANIEL ELLSBERG THAT EERIE HISTORY RELATED YEARS AGO BY THEN ADM ZUMWALT TO JOURNAL EDITOR ROBERT BARTLEY IS WORTH PONDERING NOW THAT PRESIDENT CLINTON MAY DECIDE TO BOMB THE SERBS FOR IT WAS ADM ZUMWALT'S SON WHO LATER FOUGHT IN VIETNAM AMID AGENT ORANGE MR ELLSBERG CHANGED HIS MIND LEAKED THE PENTAGON PAPERS AND BLAMED THE WAR ON THE CHARACTER OF HIS COUNTRYMEN THE POINT ISN'T THAT BOSNIA IS ANOTHER VIETNAM FOR THERE ARE MANY DIFFERENCES IT IS THAT A LITTLE UNDERSTOOD PART OF THE VIETNAM SYNDROME IS OPERATING JUST BELOW THE SURFACE OF TODAY'S BOSNIAN DEBATE SOME OF THE LOUDEST VOICES NOW ARGUING FOR US INTERVENTION SHARE THE STRATEGIC MINDSET OF THE ELLSBERGS OF 1962 THEY'RE THE ONES WHO FAVORED THE WAR AT THE BEGINNING BUT SHRANK FROM THE VIOLENCE NEEDED TO WIN THAT'S LITERALLY TRUE OF ANTHONY LEWIS THE NEW YORK TIMES COLUMNIST WHO IS NOW A BOSNIAN SUPERHAWK OTHER YOUNGER LIBERALS NOW URGING THE USE OF FORCE CAME OF AGE OPPOSING VIETNAM DELAWARE SEN JOE BIDEN FOR ONE HAS OPPOSED JUST ABOUT EVERY US INTERVENTION THEN AND SINCE EVEN AGAINST SADDAM HUSSEIN BUT NOW HE SAYS THE CONSCIENCE OF THE WEST DEMANDS THAT MR CLINTON BOMB SERB ARTILLERY AND SUPPLY LINES THOUGH OF COURSE HE MUSN'T INTRODUCE US GROUND TROOPS OR GO TO THE SOURCE IN BELGRADE IT'S ONLY FAIR TO ASK MR BIDEN IF HIS CONSCIENCE WILL HOLD UP WHEN US BOMBS KILL CIVILIANS OR PILOTS ARE TAKEN PRISONER OF COURSE SOME CARDCARRYING REALISTS ALSO FAVOR USING MILITARY FORCE AGAINST THE SERBS BUT MARGARET THATCHER OR JEANE KIRKPATRICK WON'T BE RUNNING A BOSNIAN WAR THIS WOULD BE THE LIBERALS' WAR THE FIRST SINCE VIETNAM IT WOULD BE GOOD FOR THE COUNTRY AND THE WORLD IF LIBERAL DEMOCRATS COULD SHOW THEY CAN USE FORCE SUCCESSFULLY BUT THEY ALSO HAVE A HIGHER WALL OF CREDIBILITY TO CLIMB BEFORE THE PUBLIC IS GOING TO TRUST THEM WITH THE EFFORT ESPECIALLY IF THE NEW PRESIDENT IS A WORKINPROGRESS WHO COMES OUT OF THE VIETNAM EXPERIENCE IT'S THIS WORRY THAT LIES BEHIND MUCH OF THE UNEASE OVER BOSNIA IN THE MILITARY AND CONGRESS TODAY'S GENERALS WHO WERE YOUNG OFFICERS DURING VIETNAM WANT THE POLITICIANS TO PUT THEIR GOALS ON THE TABLE FIRST THE MILITARY'S CRITICAL CANDOR HAS BEEN A PUBLIC SERVICE IN A PRIVATE MEETING THIS WEEK OF SAM NUNN'S ARMED SERVICES COMMITTEE ONLY TWO OR THREE SENATORS NEOHAWK CARL LEVIN AND OLD HAWK JOE LIEBERMAN WERE STALWART FOR BOMBING THE OTHERS HAD QUESTIONS THE SAME WORRY HAS ALSO RAISED QUESTIONS AMONG OTHERS INCLUDING ME WHO FAVORED ARMING THE BOSNIANS LAST YEAR WHEN THERE WERE MORE OF THEM TO ARM THE BIDEN AND EMERGING CLINTON PROPOSAL IS TO COMBINE ARMING THE BOSNIANS WITH WESTERN AIR STRIKES TO DRIVE THE SERBS TO THE NEGOTIATING TABLE ARIZONA SEN JOHN MCCAIN A VIETNAM PRISONER OF WAR ASKED MR BIDEN IN A TV DEBATE THIS WEEK WHAT HAPPENS IF BOMBING DOESN'T WORK MR BIDEN SAID WE WOULD BE NO WORSE OFF THAN WE ARE NOW BUT OF COURSE WE WOULD BE MUCH WORSE OFF HAVING INVESTED US PRESTIGE SENS BOB DOLE AND RICHARD LUGAR TWO OLD HAWKS WHO WANT TO HELP MR CLINTON MADE EXACTLY THIS POINT IN A MEETING WITH HIM TUESDAY A US PRESIDENT CAN'T AFFORD TO LOSE WHEN USING FORCE DOING NOTHING WOULD COST LESS NOW THAN DOING SOMETHING THE WRONG WAY THE BIDEN PLAN REMINDS SOME STRATEGISTS ALL TOO MUCH OF THE GRADUALIST MENTALITY OF ROLLING THUNDER LBJ'S VIETNAM BOMBING CAMPAIGN COMPLETE WITH PAUSES FOR TALKS ZALMAY KHALILZAD A BOSNIA HAWK IN THE BUSH PENTAGON AND NOW WITH RAND SAYS ONLY A HUGE BOMBING CAMPAIGN WILL IMPRESS THE SERBS SOMETHING LIKE IRAQ PHASE ONE FIVE OR SIX WEEKS GEORGE KENNEY WHO RESIGNED FROM THE BUSH STATE DEPARTMENT OVER BOSNIA IS HONEST ENOUGH TO SAY IT WILL TAKE THAT PLUS PERHAPS 50000 GROUND TROOPS IT'S TRUE AS MR BIDEN ARGUES THAT THE SERBS LACK A SUPERPOWER PATRON TO HELP THEM RESIST BUT LIBERALS MAY CREATE THEIR OWN HINDRANCE TO US ACTION WITH THEIR FETISH FOR MULTILATERAL CONSENSUS THE BRITISH OR RUSSIANS COULD ENFORCE A LOWESTCOMMONDENOMINATOR POLICY THAT REALLY DOES BECOME A QUAGMIRE MR CLINTON LIKE MR BUSH IN THE GULF HAS TO BE PREPARED TO ROLL OVER EUROPE'S FAINTHEARTS THE MAIN DIFFERENCE BETWEEN THE OLD HAWKS AND NEW MAY COME DOWN TO NATIONAL INTEREST MESSRS KENNEY AND KHALILZAD WANT TO STOP THE SERBS NOW BECAUSE THEY SEE A FASCIST REGIME IN EUROPE THAT WON'T STOP AT BOSNIA BUT LIBERALS SEEM READY TO INTERVENE ONLY NARROWLY ON HUMANITARIAN GROUNDS ALMOST BECAUSE THEY THINK THERE IS LITTLE US INTEREST AT STAKE THEY CAN SOOTHE THEIR CONSCIENCES WITH BOMBING AND THEN GO HOME IF IT DOESN'T WORK AT THE HOLOCAUST MEMORIAL LAST WEEK SUPPORTERS OF US FORCE IN BOSNIA BORROWED THE MORAL REBUKE OF NEVER AGAIN THEY HAVE A POWERFUL AND MAYBE A CORRECT ARGUMENT BUT BEFORE THEIR CHILDREN RISK THEIR LIVES AMERICANS SHOULD ASK A NEVERAGAIN QUESTION OF THE LIBERAL HAWKS THIS TIME ARE YOU PREPARED TO DO WHATEVER IT TAKES TO WIN 9304300091 930430 LABOR SECRETARY DESPITE OPPOSITION OF UNIONS BACKS MEXICO TRADE PACT BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON LABOR SECRETARY ROBERT REICH IGNORING THE PLEAS OF ORGANIZED LABOR UNEQUIVOCALLY BACKED THE NORTH AMERICAN FREE TRADE AGREEMENT AND URGED WORKERS TO SUPPORT THE ACCORD MR REICH'S REMARKS IN A SPEECH PREPARED FOR DELIVERY LAST NIGHT TO THE AMERICAN BAR ASSOCIATION ARE SURE TO DISAPPOINT THE UNIONS ARGUING THAT THE PACT WOULD MOVE JOBS AND INDUSTRIES TO MEXICO AT A TIME WHEN THE US ECONOMY CAN LEAST AFFORD IT UNION LEADERS HAD HOPED MR REICH WOULD STAND WITH THEM IN INSISTING ON EXTENSIVE REVISIONS TO PROTECT US JOBS BEFORE CHAMPIONING IT SEVERAL UNIONS ARE ACTIVELY CAMPAIGNING AGAINST ADOPTION OF THE AGREEMENT WE ARE GOING TO WAGE AN ALLOUT CAMPAIGN TO DEFEAT THIS AGREEMENT SAID WILLIAM BYWATER PRESIDENT OF THE INTERNATIONAL UNION OF ELECTRICAL WORKERS THE UNION PLANS NEXT WEEK TO SEND OUT DEFEAT NAFTA ORGANIZING GUIDES TO UNION ACTIVISTS THE TRADE AGREEMENT HAS BEEN SIGNED BY THE US MEXICO AND CANADA BUT THE PACT REQUIRES APPROVAL BY A LESSTHANENTHUSIASTIC CONGRESS BEFORE IT TAKES EFFECT THE CLINTON ADMINISTRATION HAS SAID IT WON'T STRONGLY SUPPORT THE ACCORD UNTIL ADDITIONAL AGREEMENTS ON JOBS AND THE ENVIRONMENT HAVE BEEN HAMMERED OUT TALKS AMONG THE THREE COUNTRIES ON THOSE SOCALLED SIDE AGREEMENTS BEGAN ABOUT FIVE WEEKS AGO IN HIS SPEECH MR REICH ACKNOWLEDGED THAT THE ACCORD FACES A BATTLE ITS BENEFITS NOTWITHSTANDING NAFTA WILL BE A HARD SELL HERE IN THE UNITED STATES HE SAID RECENT ECONOMIC TRENDS HAVE CHIPPED AWAY AT THE TRADITIONAL AMERICAN READINESS TO SEIZE THE CHALLENGE OF CHANGE THAT STATEMENT MAKES MR REICH THE SECOND SENIOR ADMINISTRATION OFFICIAL IN THE PAST WEEK TO EXPRESS CONCERN ABOUT THE ACCORD'S FUTURE EARLIER BUDGET CHIEF LEON PANETTA VOICED DOUBTS ABOUT THE ACCORD'S CHANCES STILL MR REICH PRODDED WORKERS AND OTHERS TO BACK THE AGREEMENT THE CHOICE IS NOT BETWEEN CHANGE AND THE STATUS QUO THAT OPTION IS NO LONGER OPEN HE SAID IT IS BETWEEN EMBRACING CHANGE AND RESISTING IT HE SAID THAT HIGHPAYING UNSKILLED AND SEMISKILLED MANUFACTURING JOBS WILL VANISH FROM THE US WHETHER OR NOT THE ACCORD IS SIGNED LEAVING INDUSTRY HERE TO FIGHT WITH OTHER COUNTRIES FOR HIGHSKILL WORK HE URGED WORKERS TO REALIZE THAT THEY HAVE LITTLE TO FEAR FROM NAFTA AND MUCH TO HOPE FOR IN PARTICULAR THE POSSIBILITY THAT MEXICAN CONSUMERS WILL STEP UP PURCHASES OF US PRODUCTS ESPECIALLY CARS AND LIGHT TRUCKS IT WOULD BE SADLY IRONIC IF THE ECONOMIC STRESSES NOW EXPERIENCED BY MANY AMERICANS PREVENTED US FROM ENJOYING THE ECONOMIC BENEFITS LYING JUST AROUND THE CORNER MR REICH SAID THE LABOR SECRETARY ALSO REITERATED THE GOVERNMENT'S INTENTION TO RETRAIN WORKERS WHO HAVE BEEN DISPLACED AS A RESULT OF THE ACCORD BUT HE SAID THAT NUMBER WILL AMOUNT TO NO MORE THAN A TINY PORTION OF THE TOTAL NUMBER OF AMERICAN WORKERS WHO MUST FIND NEW JOBS IN ANY GIVEN YEAR 9304300090 930430 THAI SCANDAL MAY TRIGGER CABINET SHAKEUP GOVERNMENT'S STOCK PROBE ALREADY HAS PROMPTED A LAWMAKER TO RESIGN BY CYNTHIA OWENS STAFF REPORTER OF THE WALL STREET JOURNAL BANGKOK THAILAND A STOCKMANIPULATION INVESTIGATION IS THREATENING TO TURN INTO A POLITICAL PREDICAMENT THAT MIGHT PROVOKE A SHUFFLING OF THAILAND'S CABINET THE CASE DOESN'T SEEM LIKELY TO THREATEN THE RULING COALITION BUT THIS WEEK IT CLAIMED ITS FIRST POLITICIAN AND AS THE PROBE CONTINUES TO MAKE HEADLINES IN THE LOCAL PRESS THE PRESSURE WILL INCREASE ON PRIME MINISTER CHUAN LEEKPAI TO RESPOND MEANWHILE THE PROCEEDINGS HAVE ADDED TO THE WOES OF HIGHFLYING PROPERTY DEVELOPER BANGKOK LAND LTD THE COMPANY'S SHARE PRICE PLUNGED ON THE STOCK EXCHANGE OF THAILAND AFTER ITS MANAGING DIRECTOR WAS NAMED IN COMPLAINTS OF SHARE MANIPULATION FILED LAST WEEK BY THAILAND'S SECURITIES AND EXCHANGE COMMISSION THIRTY PEOPLE ARE NAMED IN THE SEC'S CRIMINAL COMPLAINTS WHICH ALLEGE COLLUSION TO MANIPULATE THE SHARE PRICES OF FOUR COMPANIES THERE ARE NO POLITICIANS AMONG THE ACCUSED THOUGH SOME OF THE 30 ARE WELL KNOWN IN THE LARGEST OF THE SCHEMES THE GROUP IS ALLEGED TO HAVE WORKED WITH THE MANAGEMENT OF THREE COMPANIES TO MOVE MONEY BETWEEN ACCOUNTS THUS DRAWING INVESTORS BY CREATING THE FALSE IMPRESSION OF WIDESPREAD BUYING INTEREST THOSE CHARGED INCLUDE MANAGEMENT AND OWNERS FROM THREE OF THE COMPANIES RATTANA REAL ESTATE CO KRISDA MAHANAKORN CO AND FIRST CITY INVESTMENTS LTD THE FOURTH COMPANY IS SIAM CITY BANK LTD THAILAND'S FIRST STOCKMANIPIULATION CASE CAME LATE LAST YEAR WHEN 12 PEOPLE WERE CHARGED WITH COLLUSION TO MANIPULATE THE SHARE PRICE OF BANGKOK BANK OF COMMERCE LTD SOME OF THOSE 12 NAMES APPEARED AGAIN IN LAST WEEK'S ACTION BY THE SEC AN 11MONTHOLD REGULATORY BODY PATTERNED AFTER THE US AGENCY OF THE SAME NAME A COMMISSION SPOKESMAN SAID TUESDAY THAT THE EVIDENCE IN THE MOST RECENT CASE ALSO INCLUDES THE NAMES OF 123 OTHER PEOPLE AND COMPANIES THAT SURFACED DURING THE PROBE SIGNS OF A WIDENING INVESTIGATION SCARED OFF INVESTORS AND BANGKOK'S SET INDEX ON TUESDAY FELL 137 POINTS OR 15 IN AN EFFORT TO CALM THE MARKET THE SEC SPOKESMAN POINTED OUT THAT THOSE ON THE LONGER LIST MIGHT NEVER BE CHARGED YESTERDAY THE INDEX CLOSED AT 84957 OFF 728 POINTS THE NAMES ON THE LONGER LIST HAVEN'T BEEN RELEASED BUT A RUMOR THAT A PROMINENT MEMBER OF PARLIAMENT FROM ONE OF THE RULINGCOALITION PARTIES IS LINKED TO THE CASE WAS ENOUGH TO CAUSE HIM TO RESIGN AKORN HOONTRAKUL HEAD OF THE NEW IMPERIAL HOTEL GROUP AND A MEMBER OF THE PALANG DHARMA PARTY STEPPED DOWN LATE MONDAY HE STRONGLY DENIED ANY WRONGDOING AND SAID HE WAS GIVING UP HIS POSITION ONLY TO CLEAR HIS NAME MR AKORN'S RESIGNATION HAS FOCUSED ATTENTION ON DEPUTY PRIME MINISTER SUPACHAI PANITCHPAKDI MR SUPACHAI WAS A DIRECTOR OF KRISDA MAHANAKORN AT THE TIME THAT A MANIPULATION OF ITS SHARE PRICE IS ALLEGED TO HAVE TAKEN PLACE MR SUPACHAI HAS NOT BEEN ACCUSED OF WRONGDOING STILL BECAUSE HE IS A MEMBER OF MR CHUAN'S DEMOCRAT PARTY HE MIGHT COME UNDER PRESSURE TO RESIGN TO PROVE THE ADMINISTRATION'S COMMITMENT TO FAIR AND HONEST GOVERNMENT IN RECENT MONTHS OPPOSITION MEMBERS OF PARLIAMENT HAVE BEEN PRESSING THE CABINET TO EXPLAIN RUMORS THAT SOME MINISTERS WOULD BE LINKED TO THE CASE HE MR SUPACHAI MAY BE ASKED TO STEP DOWN AS A SACRIFICE TO KEEP THE DEMOCRATS IN POWER SAID ONE LEGISLATOR FROM ANOTHER PARTY MR SUPACHAI ONE OF FOUR APPOINTED CABINET MEMBERS IS THE FORMER PRESIDENT OF THAI MILITARY BANK HE'S CREDITED WITH DEVELOPING SOME OF THE GOVERNMENT'S LONGTERM PLANS TO DEVELOP THE ECONOMY IN RURAL AREAS SHOULD MR SUPACHAI RESIGN IT COULD TRIGGER A JUGGLING OF THE CABINET MANY POLITICAL ANALYSTS HAVE BEEN PREDICTING THAT CABINET CHANGES ARE LIKELY IN MAY PARTICULARLY BECAUSE OF LARGELY UNANSWERED OPPOSITION CHARGES THAT THE GOVERNMENT HAS ACCOMPLISHED LITTLE IN ITS FIRST SIX MONTHS IN OFFICE A NUMBER OF SPECIFIC PROBLEMS ARE CROPPING UP SAID SUKHUMBAND PARIBATRA ASSOCIATE PROFESSOR OF INTERNATIONAL RELATIONS AT CHULALONGKORN UNIVERSITY POLITICAL ANALYSTS AND DIPLOMATIC SOURCES SAID THAT A SHUFFLE WOULDN'T BE A SERIOUS THREAT TO THE RULING COALITION OR TO MR CHUAN IT MIGHT GIVE A KIND OF STRENGTH TO THE GOVERNMENT IN TERMS OF SHOWING THEY ARE TRYING TO GET RID OF BAD PRACTICES IN THE STOCK MARKET SAID SUCHIT BUNBONGKARN HEAD OF THE POLITICAL SCIENCE DEPARTMENT AT CHULALONGKORN UNIVERSITY MORE SOBER ARE THE IMPLICATIONS FOR BANGKOK LAND ITS MANAGING DIRECTOR SAKORN KAJANAPAS WAS NAMED IN THE SEC COMPLAINT MR SAKORN WHO IS ALSO THE BROTHER OF THE COMPANY'S CHIEF EXECUTIVE ANANT KANJANAPAS IS ACCUSED OF TAKING PART IN THE SCHEME TO MANIPULATE THE SHARE PRICE OF SIAM CITY BANK SHARES IN BANGKOK LAND PLUNGED ON MONDAY AND TUESDAY AS RUMORS SPREAD THAT OTHER MEMBERS OF THE COMPANY'S MANAGEMENT WERE ON THE SEC'S LONGER LIST COMPANY OFFICIALS DENY ANY WRONGDOING YESTERDAY BANGKOK LAND SHARES CLOSED AT 68 THAI BAHT 270 UP 15 BAHT SOME STOCK MARKET ANALYSTS WORRY THAT THE IMPLICATIONS PROVEN OR NOT COULD FURTHER DEFLATE THE COMPANY'S IMAGE WHICH IS ALREADY SAGGING BECAUSE OF ITS FAILURE TO MEET SOME SALES PROJECTIONS LAST YEAR THE FEAR IS THAT TOGETHER THE TROUBLES COULD AFFECT ITS SALE OF RESIDENTIAL REAL ESTATE THE CONCERN WOULD BE ANY IMPACT THIS HAS ON HOUSE BUYERS WHICH AT THIS POINT IS DIFFICULT TO MEASURE SAID DAVID GAMBRILL RESEARCH MANAGER FOR PEREGRINE BROKERAGE LTD 9304300089 930430 TOURIST MARKET IN HONG KONG HONG KONG HONG KONG'S TOURIST MARKET POSTED MODERATE GROWTH IN MARCH WITH ARRIVALS GROWING 10 FROM A YEAR EARLIER THE HONG KONG TOURIST ASSOCIATION SAID ARRIVALS ROSE MODERATELY TO 607158 FROM 551820 IN MARCH 1992 HELPED BY THE HEALTHY GROWTH IN TOURISTS FROM TAIWAN DESPITE A DECLINE IN JAPANESE ARRIVALS IN THE YEAR'S FIRST THREE MONTHS VISITOR ARRIVALS EDGED UP 62 TO 163 MILLION COMPARED WITH 154 MILLION IN THE YEAREARLIER PERIOD IN MARCH PEOPLE FROM TAIWAN REMAINED THE SINGLE LARGEST GROUP OF TOURISTS GAINING 16 BUT VISITS BY JAPANESE THE NEXT BIGGEST CATEGORY SLID 20 OVER LONGER DISTANCES ARRIVALS BY NORTH AMERICANS JUMPED 123 WHILE THOSE FROM WEST EUROPE LEAPED 17 OVER THE FIRST THREE MONTHS THE NUMBER OF TAIWANESE WAS UP 16 TO 402826 BUT JAPANESE VISITORS SKIDDED 16 TO 295801 TOURISTS FROM SOUTHEAST ASIA ONE OF THE FASTEST GROWING CATEGORIES LAST YEAR WERE AHEAD 15 TO 250314 TOURISTS STATISTICS ARE CLOSELY WATCHED BY LOCAL ANALYSTS BECAUSE THE INDUSTRY COMPRISES ROUGHLY 75 OF THE LOCAL ECONOMY 9304300088 930430 LAW LEGAL BEAT DALKON SHIELD VICTIMS WHO SPURN SETTLEMENTS TAKE ON BIG RISKS BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL INJURED USERS OF THE DALKON SHIELD CONTRACEPTIVE ARE FINDING THAT CHALLENGING THE TRUST CREATED TO COMPENSATE THEM CAN BE AS FORMIDABLE AND RISKY AS TAKING ON THE ORIGINAL MAKER OF THE DEVICE AH ROBINS CO WHILE THE VAST MAJORITY OF CLAIMANTS HAVE ACCEPTED SETTLEMENTS MANY HAVE REJECTED THE OFFERS AS INADEQUATE AS CHALLENGES TO THOSE OFFERS BEGIN TO HEAT UP CLAIMANTS' LAWYERS SAY THE TRUST IS RELYING ON SOME OF THE SAME DEFENSE TACTICS USED BY ROBINS TO DEFEND THE DEVICE INCLUDING DELVING INTO SEXUAL HISTORIES OF CLAIMANTS THE TRUST ALSO IS CONTESTING ISSUES THAT WERE THOUGHT TO HAVE BEEN LONG SETTLED SUCH AS WHETHER THE DEVICE'S DESIGN CAUSED INCREASED INCIDENCES OF PELVIC INFECTION AND DISEASE THE UPSHOT HAS BEEN CONTINUING TENSION BETWEEN THE TRUST AND SOME CLAIMANTS AND THEIR LAWYERS AS WELL AS MOUNTING LEGAL EXPENSES AND DELAYS FOR WOMEN WHO CHOOSE TO APPEAL CLAIMS THE TRUST WAS BEGUN IN 1989 WITH 23 BILLION TO SETTLE 197000 INJURY CLAIMS FILED BY USERS OF THE DALKON SHIELD AN INTRAUTERINE DEVICE BELIEVED TO HAVE CAUSED PELVIC INFECTIONS AND DAMAGE TO REPRODUCTIVE ORGANS IN THOUSANDS OF WOMEN SOMETIMES RESULTING IN STERILITY THE DEVICE WAS MADE AND MARKETED WORLDWIDE BY ROBINS DURING THE EARLY 1970S DESPITE EVIDENCE THAT IT WAS DEFECTIVE THE COMPENSATION PLAN WHICH EMERGED FROM ROBINS'S BANKRUPTCYCOURT REORGANIZATION AND ITS SALE IN 1989 TO AMERICAN HOME PRODUCTS CORP NEW YORK HAS BEEN PRAISED AS THE MOST SUCCESSFUL AND INNOVATIVE APPROACH YET TO RESOLVING MULTIPLE INJURY CLAIMS ITS AIM IS TO PRESERVE FUND ASSETS FOR CLAIMANTS BY MINIMIZING ADVERSARIAL RELATIONS OR EVEN THE NEED FOR LAWYERS AND KEEPING COSTS LOW FRIENDLY SETTLEMENTS ARE THE GOAL BUT CLAIMANTS CAN CHOOSE TO APPEAL OFFERS THEY CONSIDER INADEQUATE THROUGH ARBITRATION OR TRIAL MUCH OF THE PLAN HAS BEEN A SUCCESS ABOUT 147000 CLAIMANTS HAVE SETTLED AMICABLY OFTEN FOR LESS THAN 5500 BUT THE REMAINING CLAIMS ARE MORE PROBLEMATIC GENERALLY THEY INVOLVE ALLEGATIONS OF MORE SEVERE INJURIES THAT IN MANY CASES ARE COMPOUNDED BY MISSING OR INADEQUATE MEDICAL RECORDS OF THE MORE THAN 44000 REMAINING CLAIMANTS ABOUT HALF ARE AWAITING SETTLEMENT OFFERS WHILE 2500 HAVE REJECTED THEIRS TRUST OFFICIALS HOPED TO RESOLVE THESE CASES THROUGH ARBITRATION A FASTER CHEAPER AND MORE EFFICIENT ALTERNATIVE TO A TRIAL TO ENCOURAGE ARBITRATION CLAIMANTS ARE BEING ALLOWED TO BYPASS THE SETTLEMENT CONFERENCES OTHERWISE REQUIRED AND THE LONG DELAY THEY ENTAIL IF THEY AGREE TO CAP THEIR POTENTIAL DAMAGES AT 10000 THAT MOVE HAS HELPED RESOLVE MORE THAN 240 REJECTED OFFERS AND HAS WON HIGH PRAISE FROM LAWYERS INITIALLY I WAS DISSATISFIED SAYS DAVID SABIH A LOS ANGELES ATTORNEY WHO HAS BEEN ONE OF THE TRUST'S MOST VOCAL CRITICS BUT NOW I CAN SEE WHERE THEY'RE GOING THEY'RE HANDLING THINGS VERY VERY EFFICIENTLY BUT OTHER LAWYERS WITH CASES SEEKING MORE THAN 10000 COMPLAIN THAT THE TRUST'S ARBITRATION RULES WORK AGAINST CLAIMANTS PARTICULARLY A PROVISION THAT WOULD INVALIDATE CLAIMS BROUGHT MORE THAN THREE YEARS AFTER A WOMAN LEARNED OF HER INJURY PLAINTIFFS' LAWYERS WANT THE LIMIT SET AT THREE YEARS FROM THE DATE A CLAIMANT LEARNED THE DALKON SHIELD MAY HAVE CAUSED THE INJURY THAT DISPUTE AND SEVERAL OTHERS ARE PENDING BEFORE THE FEDERAL APPEALS COURT IN RICHMOND VA SOME LAWYERS MEANWHILE HAVE BEEN ADVISING CLIENTS TO GO TO TRIAL IN STATE COURTS WHERE MORE LENIENT TIME LIMITS ARE USUALLY AVAILABLE CLAIMANTS' LAWYERS ALSO CONTEND THAT THE TRUST'S DEFENSE TACTICS IN ARBITRATION ARE MAKING IT AS COSTLY AND TIMECONSUMING AS PREPARING FOR TRIAL THUS OBVIATING ANY BENEFIT SO FAR MORE THAN TWICE AS MANY CLAIMANTS HAVE OPTED FOR TRIALS 168 AS HAVE CHOSEN ARBITRATION 76 TRUST OFFICIALS SAY THEY AREN'T SURPRISED BY THE PROPORTION OF CLAIMANTS CHOOSING TO GO TO TRIAL MANY OF THE CASES NOW AT THE HEAD OF THE LINE FOR LITIGATION WERE READY FOR TRIAL IN 1985 WHEN ROBINS FROZE ALL PENDING LAWSUITS BY FILING FOR BANKRUPTCYCOURT PROTECTION SAYS TRUST CHAIRWOMAN AND FORDHAM UNIVERSITY LAW PROFESSOR GEORGENE VAIRO LAWYERS SHE SAYS ARE SIMPLY PICKING UP WHERE THEY LEFT OFF BUT PLAINTIFFS' LAWYERS BLAME UNEXPECTEDLY AGGRESSIVE ARBITRATION TACTICS BY THE TRUST IN ONE RECENT CASE FOR EXAMPLE A USER OF THE DALKON SHIELD SOUGHT COMPENSATION FOR LOST BUSINESS PROFITS BECAUSE SHE WAS UNABLE TO WORK FOR SEVEN MONTHS THE TRUST HAD OFFERED ONLY A MINIMAL SETTLEMENT BECAUSE EVALUATORS CLAIMED SHE HADN'T SUFFICIENTLY ESTABLISHED THAT HER PELVIC INFECTION HAD CAUSED THE LOSSES TO HER BUSINESS MAKING AND DISTRIBUTING RESORT CLOTHING WHEN SHE APPEALED TO AN ARBITRATION HEARING IN JANUARY HOWEVER THE TRUST COUNTERED WITH A MORE SWEEPING DEFENSE CONTESTING WHETHER THE DALKON SHIELD CAUSED HER INJURY AT ALL AND EVEN WHETHER THE DEVICE WAS DEFECTIVE TRUST RULES ARE SUPPOSED TO RESERVE THE ISSUE OF DEFECT FOR TRIAL TO REDUCE THE COST OF ARBITRATION BUT THE WOMAN LOST HER CASE NONETHELESS AS WITH A TRIAL LOSING IN ARBITRATION MEANS RECEIVING NO COMPENSATION AT ALL THE WHOLE POINT OF GOING TO ARBITRATION WAS TO NOT GO TO THE EXPENSE OF LITIGATING THAT ISSUE SAYS HER LAWYER MIKE WILLIAMS IN PORTLAND ORE I WOULDN'T HAVE TAKEN THIS WOMAN TO ARBITRATION IF I'D KNOWN I WAS GOING TO HAVE TO ARGUE PRODUCT DEFECT I WOULD HAVE GONE TO TRIAL MS VAIRO THE TRUST'S CHAIRWOMAN MAINTAINS THAT THE TRUST'S POLICY WON'T BE TO DENY THAT THE DALKON SHIELD WAS DEFECTIVE AS ROBINS DID IN ITS DEFENSE THAT'S A LOST CAUSE SAYS MS VAIRO NEVERTHELESS SHE ADDS THE TRUST CAN'T RULE THE TACTIC OUT AS A LEGAL DEFENSE EITHER IF WE FEEL IT WOULD COMPROMISE OUR ABILITY TO DEFEND OURSELVES WE CAN'T CONCEDE IT SHE SAYS THE TRUST HAS NO EXACT FIGURES BUT CLAIMANTS ON AVERAGE ARE LIKELY TO RECEIVE BIGGER DAMAGE AWARDS THROUGH ARBITRATION OR TRIAL THAN BY SETTLING MS VAIRO SAYS BUT SHE ADDS THERE IS A SIGNIFICANT RISK THE CLAIMANT WILL WALK AWAY WITH LESS OR NOTHING JUDGES MUST BE PRESENT WHEN LAWYERS PICK JURORS IN CRIMINAL TRIALS A CONNECTICUT APPEALS COURT RULED THROUGHOUT THE COUNTRY STATE AND FEDERAL JUDGES ROUTINELY SUPERVISE THE PROCEEDING IN WHICH PROSECUTORS AND DEFENSE LAWYERS SELECT A JURY FROM A LARGE PANEL OF PROSPECTS BUT IN STAMFORD CONN JURIES FOR CRIMINAL TRIALS EVEN IN SOME MURDER CASES HAVE BEEN PICKED WITHOUT A JUDGE FOR AT LEAST 15 YEARS LAWYERS IN STAMFORD SAY THE SHORTCUT HAS BEEN TAKEN TO ALLOW JUDGES FACING OVERBURDENED DOCKETS TO PRESIDE OVER ONE CASE WHILE A SECOND ONE GETS UNDER WAY LAWYERS SAY THAT SELECTING A JURY WITHOUT A JUDGE PRESENT HOWEVER RAISES PARTICULAR CONCERNS WHEN CLAIMS ARE MADE THAT PROSPECTIVE JURORS WERE REJECTED IMPROPERLY BECAUSE OF THEIR RACE FOR INSTANCE DURING JURY SELECTION IN THE CONNECTICUT CASE DEFENSE ATTORNEY BRUCE DONALD KOFFSKY ACCUSED THE PROSECUTOR OF USING HER PEREMPTORY CHALLENGES IN WHICH AN ATTORNEY CAN REJECT A JUROR FOR NO STATED REASONS TO EXCLUDE TWO OF THE THREE BLACK CANDIDATES SOLELY BECAUSE OF THEIR RACE THE US SUPREME COURT HAS RULED THAT RACEBASED PEREMPTORY CHALLENGES ARE UNCONSTITUTIONAL THE TRIAL JUDGE JOSEPH SYLVESTER OVERRULED MR KOFFSKY'S OBJECTION AND THE DEFENDANT LATER WAS CONVICTED OF MARIJUANA POSSESSION AND INTENT TO SELL BUT THE APPELLATE COURT EXPRESSING SURPRISE THAT JURIES WERE BEING CHOSEN WITHOUT A JUDGE THREW OUT THE CONVICTION THE APPEALS COURT SAID THAT WHEN JURY SELECTION IN A CRIMINAL TRIAL IS CONDUCTED IN THE JUDGE'S ABSENCE IT IS WITHOUT THE CLOAK OF JUDICIAL AUTHORITY AND ANY JUDGMENT FLOWING FROM THOSE EXTRAJUDICIAL PROCEEDINGS IS NULL AND VOID ASSISTANT STATE'S ATTORNEY JAMES RALLS SAID THE STATE PLANS TO APPEAL THE RULING BUT MEANWHILE ALL STATE PROSECUTORS HAVE BEEN TOLD TO ASK JUDGES TO STAY IN THE COURTROOM WHILE JURIES ARE SELECTED ASBESTOS COVERAGE INSURERS DESERVE A TRIAL TO DETERMINE WHETHER FORMER ASBESTOS MAKER OWENSILLINOIS INC MISLED THEM IN THE LATE 1970S ABOUT POTENTIAL ASBESTOS CLAIMS A NEW JERSEY APPEALS COURT RULED A JUDGE HAD RULED THAT THE INSURERS' POLICIES COVERED AS MUCH AS 960 MILLION IN ASBESTOS CLAIMS BUT THE APPEALS COURT SAID THE MATTER SHOULDN'T HAVE BEEN DECIDED WITHOUT A TRIAL ON WHETHER THE POLICIES WERE ISSUED BY REASON OF MISREPRESENTATION OR CONCEALMENT OF MATERIAL FACTS OWENSILLINOIS SAID IT EXPECTS TO PREVAIL AT TRIAL BUT MAY APPEAL THE MATTER FURTHER ARTHUR S HAYES CONTRIBUTED TO THIS COLUMN 9304300087 930430 DEFENSE ATTORNEY TRIES TO DISCREDIT KEY BCCI WITNESS BY PETER TRUELL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DEFENSE COUNSEL SOUGHT TO UNDERMINE THE TESTIMONY OF A KEY GOVERNMENT WITNESS DILDAR RIZVI IN THE BCCIRELATED TRIAL IN NEW YORK STATE COURT OF ROBERT ALTMAN A WASHINGTON ATTORNEY GUSTAVE NEWMAN MR ALTMAN'S ATTORNEY STRESSED THAT MR RIZVI A FORMER TOP OFFICER AT BCCI HOLDINGS LUXEMBOURG SA HAD AGREED TO COME TO THE US FROM PAKISTAN TO TESTIFY AGAINST MR ALTMAN ONLY IF A FEDERAL INDICTMENT AGAINST MR RIZVI WAS DROPPED IN 1991 MR RIZVI ALONG WITH OTHERS WAS INDICTED FOR MONEYLAUNDERING AND RACKETEERING MR NEWMAN NOTED THAT THE FEDERAL CHARGES AGAINST MR RIZVI CARRIED A MAXIMUM SENTENCE OF 20 YEARS IN PRISON AND THAT OTHER BCCI OFFICERS WERE CURRENTLY SERVING PRISON TERMS AFTER BEING CONVICTED ON SIMILAR CHARGES THOUGH MR RIZVI CONCEDED HE HAD SPENT A TOTAL OF 25 TO 30 HOURS WITH PROSECUTORS PRIOR TO TESTIFYING YESTERDAY HE ALSO MAINTAINED THAT HE COULD HAVE CHOSEN TO REMAIN IN PAKISTAN BEYOND THE REACH OF US PROSECUTORS MR RIZVI HAS BEEN ONE OF THE MOST IMPORTANT WITNESSES FOR NEW YORK PROSECUTORS WHO ARE SEEKING TO PROVE THAT MR ALTMAN AND HIS LAW PARTNER CLARK CLIFFORD WERE INVOLVED IN A SCHEME TO DEFRAUD BANK REGULATORS AND DEPOSITORS BY HELPING TO HIDE BCCI'S ALLEGEDLY SECRET AND ILLEGAL OWNERSHIP OF FIRST AMERICAN BANKSHARES INC OF WASHINGTON MESSRS CLIFFORD AND ALTMAN HAVE CONSISTENTLY DENIED ALL OF THE CHARGES AGAINST THEM MR RIZVI HAS BEEN ONE OF THE MOST IMPORTANT WITNESSES FOR NEW YORK PROSECUTORS WHO ARE SEEKING TO PROVE THAT MR ALTMAN AND HIS LAW PARTNER CLARK CLIFFORD WERE INVOLVED IN A SCHEME TO DEFRAUD BANK REGULATORS AND DEPOSITORS BY HELPING TO HIDE BCCI'S ALLEGEDLY SECRET AND ILLEGAL OWNERSHIP OF FIRST AMERICAN BANKSHARES INC OF WASHINGTON EARLIER THIS WEEK MR RIZVI ALLEGED THAT HE AND MR ALTMAN HAD ATTENDED MEETINGS IN 1978 AND 1979 IN WASHINGTON WHERE IT WAS MADE CLEAR THAT SEVERAL ARAB INVESTORS BUYING INTO A BIG WASHINGTON BANKHOLDING COMPANY WERE REALLY FRONT MEN FOR BCCI IN JULY 1991 BCCI WAS SEIZED AND CLOSED BY REGULATORS YESTERDAY MR NEWMAN ALSO SOUGHT TO HIGHLIGHT CHANGES IN MR RIZVI'S TESTIMONY GIVEN BOTH IN INTERVIEWS AND IN COURT IN PARTICULAR MR RIZVI CONCEDED THAT HIS RECOLLECTION OF CERTAIN EVENTS IN ATLANTA GA IN 1978 HAD CHANGED BETWEEN HIS FIRST MEETING WITH PROSECUTORS IN PAKISTAN IN SEPTEMBER 1992 AND HIS TESTIMONY THIS WEEK AND THE DEFENSE LAWYER NOTED THAT 15 YEARS HAD PASSED SINCE SOME OF THE MEETINGS THAT MR RIZVI SAID HE HAD ATTENDED WITH MR ALTMAN IN WASHINGTON MOREOVER MR ALTMAN'S DEFENSE COUNSEL TRIED TO LINK MR RIZVI TO TRANSACTIONS THAT BCCI CARRIED OUT FOR THE FORMER PANAMANIAN DICTATOR MANUEL ANTONIO NORIEGA MR RIZVI ADMITTED SOME KNOWLEDGE OF MR NORIEGA'S ACCOUNTS AND SAID HE HAD DISCUSSED THEM WITH OTHER BANK OFFICERS MR NORIEGA IS CURRENTLY SERVING A PRISON SENTENCE FOR DRUGRELATED OFFENSES 9304300086 930430 UNISYS RETIREES TURN TO HOLDERS IN EFFORT TO HALT BENEFIT CUTS PHILADELPHIA A UNION REPRESENTING UNISYS CORP RETIREES SAID INSTITUTIONAL SHAREHOLDERS WILL BE THE NEXT FOCUS OF ITS CAMPAIGN TO REVERSE THE COMPANY'S PLANS TO STOP RETIREE MEDICAL BENEFITS IN THREE YEARS A REPRESENTATIVE OF THE INTERNATIONAL UNION OF ELECTRONIC WORKERS URGED STOCKHOLDERS AT THE COMPANY'S ANNUAL MEETING HERE YESTERDAY TO PRESSURE UNISYS MANAGEMENT TO RECONSIDER THE DECISION LAST NOVEMBER BY THE INFORMATION SERVICES AND COMPUTER CONCERN TO CUT RETIREES' BENEFITS WAS ONE OF THE STRONGEST CORPORATE REACTIONS TO A NEW ACCOUNTING RULE WHICH REQUIRES COMPANIES TO CHARGE THE FULL PROJECTED COST OF SUCH BENEFITS AGAINST THEIR EARNINGS AT THE TIME UNISYS SAID THAT UNLESS IT TOOK MAJOR STEPS HEALTHCARE COSTS WOULD RUIN IT FINANCIALLY OUTSIDE THE SHAREHOLDERS MEETING 700 RETIREES ORGANIZED BY THE UNION HELD A PEACEFUL RALLY PROTESTING THE BLUE BELL PA COMPANY'S DECISION A SPOKESMAN FOR THE UNION WHICH ALREADY HAS SUED THE COMPANY AND WAGED OPPOSITION TO THE BENEFITCUT PLAN IN CONGRESS SAID IT NOW PLANS TO BROADEN ITS CAMPAIGN TO UNISYS INSTITUTIONAL SHAREHOLDERS WE'LL URGE THEM INITIALLY TO LET MANAGEMENT KNOW THAT THEY WON'T TOLERATE THE BREAKING OF A CONTRACTUAL OBLIGATION HE SAID IN PREPARED REMARKS ON THE MEDICALBENEFIT CUTS UNISYS CHAIRMAN AND CHIEF EXECUTIVE JAMES A UNRUH TOLD STOCKHOLDERS I HOPE PEOPLE UNDERSTAND THIS WAS THE MOST DIFFICULT DECISION I HAVE HAD TO MAKE IN MY BUSINESS CAREER BUT HE ADDED THAT THE CIRCUMSTANCES WHICH REQUIRED ME TO MAKE THE DECISION HAVE NOT CHANGED THE COMPANY SAID IT WOULDN'T COMMENT FURTHER BECAUSE OF PENDING LITIGATION ALTHOUGH UNDERGOING A TURNAROUND UNISYS FACES FIERCE COMPETITION IN THE COMPUTER INDUSTRY AND RISING HEALTHCARE COSTS FOR A LARGE RETIREE POPULATION 25000 INCLUDING ELIGIBLE DEPENDENTS 9304300085 930430 TECHNOLOGY & HEALTH EPA SEEKS TO LIMIT EXHAUST EMISSIONS OF NONROAD VEHICLES WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY PROPOSED ITS FIRST RULE TO LIMIT EXHAUST EMISSIONS FROM VEHICLES THAT DON'T TRAVEL THE NATION'S ROADS AND HIGHWAYS THE PROPOSAL ISSUED IN RESPONSE TO AN EPA STUDY MANDATED BY THE 1990 CLEAN AIR ACT WOULD LIMIT NITROGEN OXIDE EXHAUST EMISSIONS FROM DIESELFUELED MACHINERY AT OR ABOVE 50 HORSEPOWER INCLUDING TRACTORS FORKLIFTS ROADCONSTRUCTION VEHICLES AND EARTHMOVING EQUIPMENT SOCALLED NONROAD ENGINES HAVE LONG BEEN KNOWN TO CONTRIBUTE SIGNIFICANTLY TO AIR POLLUTION BUT THEIR EMISSIONS HAVE NEVER BEEN REGULATED BY THE EPA YESTERDAY'S ACTION PRESAGES FURTHER PROPOSALS GOVERNING MORE WIDELY USED NONROAD POLLUTION SOURCES THE EPA ALREADY IS NEGOTIATING WITH INDUSTRY OVER LIMITING EMISSIONS FROM LAWN MOWERS AND CHAIN SAWS AND WILL LIKELY ISSUE A PROPOSED RULE ON THESE ITEMS WITHIN A FEW MONTHS ACCORDING TO DICK WILSON DIRECTOR OF THE EPA'S OFFICE OF MOBILE SOURCES THE FARMING INDUSTRIAL AND CONSTRUCTION VEHICLES ADDRESSED IN THE PROPOSED REGULATION CONTRIBUTE SUBSTANTIALLY TO EXISTING LEVELS OF NITROGEN OXIDE A KEY INGREDIENT IN BOTH SMOG AND ACID RAIN ACCORDING TO THE EPA THIS EQUIPMENT CREATES 9 OF THE NATION'S NITROGEN OXIDE THE EPA HAS CALCULATED THAT A CRAWLER TRACTOR DRIVEN FOR ONE HOUR RELEASES AS MUCH NITROGEN OXIDE AS A CAR DRIVEN 900 MILES UNDER YESTERDAY'S PROPOSAL NONROAD VEHICLES WITH 50 HORSEPOWER AND UP WOULD BE REQUIRED TO LIMIT NITROGEN OXIDE EMISSIONS TO 92 GRAMS PER KILOWATT HOUR BEFORE MAKING A FINAL DECISION ON THE RULES THE EPA IS EXPECTED TO TAKE PUBLIC COMMENTS UNTIL LATE SUMMER 9304300084 930430 INDIA GIVES IMF BRIGHTER PICTURE OF ITS ECONOMY OFFICIALS' NEWS MAY ENABLE NEW DELHI TO DELAY SEEKING NEW BORROWING BY SUMAN DUBEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW DELHI INDIAN FINANCE MINISTER MANMOHAN SINGH MEETING THIS WEEK IN WASHINGTON WITH OFFICIALS OF THE INTERNATIONAL MONETARY FUND AND OTHER LENDING AGENCIES BROUGHT WITH HIM BETTERTHANEXPECTED ECONOMIC NEWS THAT MAY ENABLE INDIA TO DELAY SEEKING FRESH CREDIT TO SUPPORT ITS ECONOMICREFORM PROGRAM RISING FOREIGNEXCHANGE RESERVES AND EASING INFLATION MEAN NEW DELHI CAN DELAY UNTIL LATER THIS YEAR OR EARLY 1994 A DECISION ON SEEKING NEW MEDIUMTERM CREDITS FROM THE IMF WORSE ECONOMIC CONDITIONS WOULD HAVE FORCED INDIA TO SEEK THE FINANCING ALMOST IMMEDIATELY BUT INDIAN FINANCE MINISTRY OFFICIALS ADMIT THAT AS REPAYMENTS OF CREDITS GRANTED THREE YEARS AGO COME DUE IN THE FISCAL YEAR STARTING APRIL 1994 INDIA WILL NEED CONTINUING HELP FROM THE IMF TO KEEP ITS BALANCE OF PAYMENTS HEALTHY INDIA COULD NEED BETWEEN 6 BILLION AND 8 BILLION IN EXCEPTIONAL FINANCING OVER THREE YEARS THE TALKS IN WASHINGTON FOLLOW DISCUSSIONS IN NEW DELHI EARLIER THIS MONTH THEY ARE EXPECTED TO LEAD TO INDIA'S GAINING ACCESS AT THE END OF MAY TO 300 MILLION THE LAST INSTALLMENT OF A 22 BILLION 20MONTH CREDIT GRANTED IN OCTOBER 1991 TO SUPPORT THE COUNTRY'S ECONOMIC REFORM PROGRAM UNDER A STANDBY ARRANGEMENT THE CREDIT IS CONTINGENT ON INDIA MEETING REFORMORIENTED GOALS SUCH AS REDUCING ITS BUDGET DEFICIT ELIMINATING SUBSIDIES LIMITING DOMESTIC SHORTTERM AND MEDIUMTERM BORROWING CONTROLLING INFLATION AND INTEREST RATES AND CURBING MONEYSUPPLY GROWTH LARGELY BECAUSE OF RISING FOREIGNEXCHANGE RESERVES IT'S LESS URGENT THAT INDIA SECURE AN EXTENDEDFUND FACILITYFINANCING TIED TO SPECIFIED RESTRUCTURING STEPS IMMEDIATELY AFTER THE STANDBY ARRANGEMENT CONCLUDES SAYS FINANCE SECRETARY MONTEK SINGH AHLUWALIA WHO IS WITH THE DELEGATION TO WASHINGTON INDIA'S FOREIGNEXCHANGE RESERVES AT 69 BILLION ON FRIDAY ARE ABOUT 1 BILLION HIGHER THAN THE IMF HAD PROJECTED IN OCTOBER OFFICIALS ATTRIBUTE THE INCREASE TO THE FULL FLOAT OF THE RUPEE ANNOUNCED FEBRUARY IN MR SINGH'S BUDGET HIGHER INWARD REMITTANCES AND SLOWERTHANEXPECTED DEMAND FOR DOLLARS TO BUY IMPORTS GOVERNMENT STILL CAUTIOUS THE GOVERNMENT HOWEVER REMAINS CAUTIOUS ON ITS BALANCEOFPAYMENTS POLICIES I WOULDN'T MIND LETTING RESERVES ACCUMULATE TO 10 BILLION BEFORE THE GOVERNMENT RELAXES ITS VIGILANCE MR AHLUWALIA SAYS THE GOVERNMENT IS THEREFORE UNLIKELY FOR THE MOMENT TO PERMIT BORROWING FROM COMMERCIAL LENDERS OVERSEAS WHICH CEASED WITH THE LAUNCH OF THE REFORM PROGRAM NEW DELHI ALSO WILL CONTINUE TO DEPEND ON QUICKDISBURSING ASSISTANCE OR FUNDING RELEASED AS THE BORROWER MEETS SPECIFIC BENCHMARKS FROM INTERNATIONAL AGENCIES A GROUP INCLUDING THE WORLD BANK THE ASIAN DEVELOPMENT BANK AND DONOR NATIONS WHICH MEETS EACH JUNE TO DECIDE ON AID FOR INDIA LAST YEAR PLEDGED 72 BILLION IN GRANTS AND LOANS INDIA'S REFORM PROGRAM PARTICULARLY THE EFFORT TO CURB ITS BUDGET DEFICIT HAS HELPED TAME INFLATION PRICES LAST MONTH WERE LESS THAN 7 HIGHER THAN IN MARCH 1992 OFFICIALS HAD EXPECTED AN INFLATION RATE JUST UNDER 10 AT A NEWS CONFERENCE IN WASHINGTON EARLIER THIS WEEK IMF MANAGING DIRECTOR MICHEL CAMDESSUS EXPRESSED SATISFACTION WITH INDIA'S PERFORMANCE HE SAID THE IMF WOULD BE WILLING TO PROVIDE AN EXTENDEDFUND FACILITY AND ENHANCED STRUCTURALADJUST FACILITY A CONCESSIONAL CREDIT BECAUSE INDIA'S REFORM POLICIES AND GOALS ARE BROADLY THE SAME AS THOSE REQUIRED BY THE IMF AND OTHER DONOR AGENCIES THIS WEEK'S TALKS AREN'T EXPECTED TO RUN INTO PROBLEMS BUT POLITICAL INSTABILITY RESULTING FROM THE DESTRUCTION OF A MOSQUE AT AYODHYA ON DEC 6 AND THE VIOLENCE THAT ENSUED HAS DAMPED INDIA'S ECONOMY MR SINGH ON MONDAY TOLD PARLIAMENT THAT IN THE YEAR ENDED MARCH 31 THE GOVERNMENT COLLECTED IN INDIRECT TAXES AND EXCISE DUTIES ABOUT 50 BILLION RUPEES 16 BILLION OR 8 LESS THAN ANTICIPATED ALTHOUGH REVENUE IS EXPECTED TO PICK UP OFFICIALS CONCEDE THAT BECAUSE OF THE LOWER INCOME SOME OF LAST YEAR'S DEFICITREDUCTION TARGETS MAY NOT HAVE BEEN MET 9304300083 930430 NETWORK SYSTEMS' PURCHASE PLAN MINNEAPOLIS MINN NETWORK SYSTEMS CORP SAID IT PLANS TO BUY BUSTECH INC A CLOSELY HELD MAKER OF COMPUTER NETWORKING EQUIPMENT FOR 245 MILLION NETWORK SAID IT PLANS TO USE THE ACQUISITION OF BUSTECH BASED IN BURLINGTON MASS TO EXPAND ITS LINE OF EQUIPMENT USED TO LINK LOCALAREA COMPUTER NETWORKS TO MAINFRAME MACHINES 9304300082 930430 MAXXAM POSTS A SHARP LOSS FOR 1ST QUARTER POOR RESULTS AT COMPANY'S KAISER ALUMINUM UNIT PULLED EARNINGS DOWN BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL A CONTINUING WORLDWIDE ALUMINUM GLUT AND A BIG ACCOUNTING CHARGE PUSHED MAXXAM INC DEEPLY INTO THE RED FOR THE FIRST QUARTER REVERSING A SLIM YEAREARLIER PROFIT EVEN BEFORE THE ACCOUNTING AND OTHER CHARGES THE HOUSTON ALUMINUM FOREST PRODUCTS AND REALESTATE CONCERN HAD A LOSS OF 259 MILLION OR 274 A SHARE SALES DROPPED 3 TO 5137 MILLION FROM 5295 MILLION MAXXAM'S NET LOSS OF 4877 MILLION OR 5154 A SHARE COMPARED WITH NET INCOME A YEAR EARLIER OF 900000 OR 10 CENTS A SHARE THE LATEST PERIOD'S RESULTS WERE DEPRESSED BY CHARGES OF 4177 MILLION OR 4414 A SHARE FOR THE CUMULATIVE EFFECT OF ACCOUNTING CHANGES FOR POSTRETIREMENT BENEFITS POSTEMPLOYMENT BENEFITS AND INCOME TAXES AND AN EXTRAORDINARY LOSS OF 441 MILLION OR 466 A SHARE FOR THE EARLY RETIREMENT OF DEBT BOTH CHARGES INCLUDE CHARGES SEPARATELY REPORTED BY KAISER ALUMINUM CORP A SUBSIDIARY 872OWNED BY MAXXAM MAXXAM SAID THE BULK OF ITS OPERATING LOSSES STEMMED FROM ITS KAISER UNIT WHICH REPORTED ITS FIRST QUARTERLY NET LOSS IN SIX YEARS KAISER HAS STRUGGLED WITH DEPRESSED ALUMINUM PRICES AND A DROUGHT IN THE PACIFIC NORTHWEST THAT BY SAPPING HYDROELECTRIC POWER PRODUCTION FORCED KAISER TO CUT BACK PRODUCTION BY 25 AT TWO SMELTERS THAT ACCOUNT FOR MORE THAN HALF OF ITS AVAILABLE CAPACITY THE PRODUCTION CUTBACKS CONTINUE IN THE CURRENT QUARTER THE COMPANY SAID THE WIDELY ANTICIPATED RESULTS DREW LITTLE REACTION FROM THE MARKET MAXXAM SHARES WERE QUOTED AT 24 UP 50 CENTS IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE KAISER'S FIRSTQUARTER LOSS BEFORE THE CUMULATIVE EFFECT OF ACCOUNTING CHANGES AND DEBT RETIREMENT WAS 166 MILLION OR 29 CENTS A SHARE BECAUSE THERE WEREN'T COMPARABLE CHARGES IN THE YEARAGO QUARTER THAT COMPARES WITH NET INCOME OF 84 MILLION OR 15 CENTS A SHARE FOR THAT PERIOD SALES FOR THE QUARTER DROPPED 46 TO 4426 MILLION FROM 4637 MILLION A YEAR AGO KAISER'S NET LOSS FOR THE QUARTER OF 5457 MILLION OR 952 CENTS A SHARE INCLUDES 5073 MILLION ATTRIBUTED TO ACCOUNTING CHANGES AND 218 MILLION FROM AN EXTRAORDINARY LOSS ASSOCIATED WITH DEBT RETIREMENT KAISER ALSO SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED OFFERING OF ABOUT 172 MILLION DEPOSITARY SHARES REPRESENTING OWNERSHIP OF SERIES A MANDATORY CONVERSION PREMIUM DIVIDEND PREFERRED STOCK THE SHARES WOULD HAVE TO BE CONVERTED INTO KAISER COMMON STOCK WITHIN THREE YEARS OF THEIR DATE OF ISSUE BESIDES THE PROPOSED OFFERING KAISER SAID IT EXPECTS AN EXISTING 15 MILLION LOAN FROM MAXXAM TO KAISER'S OPERATING SUBSIDIARY KAISER ALUMINUM & CHEMICAL CORP TO BE EXCHANGED FOR ADDITIONAL DEPOSITARY SHARES KAISER SAID IT WOULD USE PROCEEDS TO PROVIDE CAPITAL AND LOANS TO ITS SUBSIDIARY TO REPAY DEBTS THE UNDERWRITERS FOR THE PROPOSED OFFERING WOULD BE LED BY MERRILL LYNCH & CO KAISER SHARES WERE QUOTED AT 6625 DOWN 25 CENTS IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE 9304300081 930430 KODAK CHAIRMAN REASSURES INVESTORS PROMISES PLAN TO SELL A MAJOR ASSET' BY JOAN E RIGDON AND RANDALL SMITH STAFF REPORTERS OF THE WALL STREET JOURNAL EASTMAN KODAK CO CHAIRMAN KAY R WHITMORE SPEAKING AT A MEETING WITH INSTITUTIONAL INVESTORS DEFENDED HIS ABILITY TO DELIVER A CREDIBLE FINANCIAL PLAN BY SEPTEMBER THE PLAN WILL INCLUDE DEBT REDUCTION AND THE SALE OF A MAJOR ASSET MR WHITMORE SAID HE DECLINED TO ELABORATE ANALYSTS HAVE LONG SPECULATED THAT KODAK WOULD SELL AN ENTIRE UNIT IN PARTICULAR THE COMPANY'S EMBATTLED INFORMATIONSYSTEMS BUSINESS WHICH MAKES COPIERS ALTHOUGH SOME HOLDERS OF KODAK SHARES THREATENED TO WITHHOLD THEIR VOTES FOR THE MANAGEMENT SLATE OF DIRECTORS AT THE ANNUAL MEETING MAY 12 MR WHITMORE'S MESSAGE SEEMED TO BE GETTING ACROSS KODAK SHARES EDGED UP 1125 TO 48375 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY ON WEDNESDAY THE SHARES HAD PLUNGED 5125 ON NEWS THAT KODAK'S WHITEKNIGHT CHIEF FINANCIAL OFFICER CHRISTOPHER J STEFFEN ABRUPTLY RESIGNED AFTER ONLY 11 WEEKS ON THE JOB MR STEFFEN 51 YEARS OLD HAD CLASHED WITH MR WHITMORE THE PHOTOGRAPHY COMPANY'S CHIEF EXECUTIVE OFFICER ON HOW QUICKLY TO SELL ASSETS AND CUT COSTS AND HOW MUCH SAY LINE MANAGERS AT THE ROCHESTER NY CONCERN SHOULD HAVE IN THOSE MATTERS IN RECENT DAYS MR WHITMORE HAS INSISTED HE HAS THE SUPPORT OF HIS BOARD BUT DIRECTORS HAVEN'T PUBLICLY LINED UP BEHIND HIM CHARLES DUNCAN THE ONLY DIRECTOR WHO RETURNED CALLS DECLINED TO COMMENT EVEN WHEN ASKED IF HE COULD SAY ANYTHING TO HELP MR WHITMORE BUT THE DRAMA IS HARDLY OVER THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM AN ACTIVIST INVESTOR WITH TWO MILLION KODAK SHARES SAID THAT ALTHOUGH IT HASN'T PREVIOUSLY TRIED TO FORCE CHANGES AT KODAK WE CLEARLY ARE GOING TO DO IT NOW FURTHER CALPERS GENERAL COUNSEL RICHARD KOPPES SAID IN AN INTERVIEW THAT THE PENSION SYSTEM MAY VOTE AGAINST MANAGEMENT'S SLATE TO EXPRESS OUR DISPLEASURE IN THE MEANTIME CALPERS HAS ASKED FOR A MEETING NEXT WEEK WITH KODAK MANAGEMENT AS A PRELIMINARY STEP TO MEETING WITH THE BOARD WE WANT TO MAKE SURE THE BOARD IS CLEARLY IN CHARGE AND IN CONTROL WE UNDERSTAND IT'S THE BOARD THAT BROUGHT IN STEFFEN AND WE WANT TO MAKE SURE THAT THE PLANS ARE ON TARGET MR KOPPES SAID SOME INVESTORS POINT OUT THAT MR STEFFEN THE FORMER HONEYWELL INC TURNAROUND ARTIST WHO RETAINS A FOLLOWING ON WALL STREET REMAINS ON THE BALLOT AFTER BEING NOMINATED BY MANAGEMENT FOR THE BOARD AND COULD POSSIBLY WIN A SEAT ASKED IF MR STEFFEN WOULD MAKE A GOOD ADDITION TO THE BOARD MR WHITMORE TOLD THE INSTITUTIONAL INVESTORS THAT HE WAS NOT COMFORTABLE WITH THE IDEA SAID RICHARD ROSEN PORTFOLIO MANAGER AT BEAR STEARNS ASSET MANAGEMENT IT'S UNCLEAR WHETHER MR STEFFEN WILL WITHDRAW HIS NAME HE COULDN'T BE REACHED FOR COMMENT SEPARATELY KODAK DENIED PERSISTENT SPECULATION BOTH INSIDE AND OUTSIDE THE COMPANY THAT MR STEFFEN RESIGNED BECAUSE TOP EXECUTIVES THREATENED TO QUIT IF HIS PLAN WAS IMPLEMENTED THAT'S RIDICULOUS A COMPANY SPOKESMAN SAID MR WHITMORE 60 WHO APPEARED FIREDUP DURING YESTERDAY'S MEETING WITH INSTITUTIONAL HOLDERS IN NEW YORK APPARENTLY WON THEIR TENUOUS SUPPORT BUT ONLY BECAUSE THEY BELIEVE THE BOARD IS PUSHING HIM TO PRODUCE THINGS WILL GET RESOLVED BECAUSE THERE'S GOING TO BE TREMENDOUS PRESSURE I THINK KAY PROBABLY SAW HIS OWN MORTALITY AT THIS MORNING'S MEETING SAID MR ROSEN OF BEAR STEARNS AT THE END OF THE MEETING WHEN AN INVESTOR SUGGESTED THAT MR WHITMORE SHOULD HAVE RESIGNED INSTEAD OF MR STEFFEN MR WHITMORE TURNED RED AND SAID THAT WOULD BE A MISTAKE PEOPLE WHO ATTENDED THE MEETING SAID SOME SHAREHOLDERS SAID THEY ARE WAITING FOR A STATEMENT FROM THE BOARD BEFORE VOTING ON THE MANAGEMENT SLATE THE BALL'S IN THE BOARD'S COURT THEY HAVE TO DO SOMETHING TO SEND A MESSAGE TO SHAREHOLDERS THAT THE LEADERSHIP CRISIS IS GOING TO BE ADDRESSED SAID RALPH WHITWORTH PRESIDENT OF THE UNITED SHAREHOLDERS ASSOCIATION A WASHINGTON DC SHAREHOLDER ACTIVIST GROUP INVESTORS HAVE BEEN URGING A MAJOR SHAKEUP AT KODAK WHICH HAS RESTRUCTURED NUMEROUS TIMES YET FAILED TO IMPROVE EARNINGS EARNINGS PEAKED IN 1988 WITH FIERCE COMPETITION FROM PRIVATELABEL FILM PRODUCERS AND ARCHRIVAL FUJI PHOTO FILM CO KODAK CAN NO LONGER RELY ON ITS CORE FILM PRODUCT TO OFFSET BLOATED COSTS AND SLUGGISH GROWTH IN OTHER BUSINESSES SUCH AS COPIERS 9304300080 930430 BUSINESS BRIEF JOHNSON & JOHNSON POSTS 503 MILLION IN 1STPERIOD EARNINGS NEW BRUNSWICK NJ JOHNSON & JOHNSON REPORTED IMPROVED FIRSTQUARTER EARNINGS COMPARED WITH A LOSS A YEAR AGO ON A BIG ACCOUNTINGRELATED CHARGE THE HEALTHCARE PRODUCTS COMPANY ALSO ANNOUNCED A STOCK BUYBACK PROGRAM AND A 13 DIVIDEND INCREASE JOHNSON & JOHNSON POSTED FIRSTQUARTER EARNINGS OF 503 MILLION OR 77 CENTS A SHARE COMPARED WITH A LOSS OF 143 MILLION OR 22 CENTS A SHARE A YEAR AGO WHICH INCLUDED A 595 MILLION CHARGE FOR THE CHANGES IN ACCOUNTING FOR RETIREE HEALTH BENEFITS AND INCOME TAXES EARNINGS FROM OPERATIONS ROSE 11 DRIVEN LARGELY BY STRONG SALES OF NEW PHARMACEUTICAL PRODUCTS SALES GREW 6 TO 36 BILLION EXCLUDING THE NEGATIVE EFFECT OF CURRENCY TRANSLATIONS SALES GREW 9 NEW PRODUCTS SUCH AS ITS ORAL CONTRACEPTIVE ORTHOCEPT ANTIFUNGAL SPORANOX AND CANCER DRUG LEUSTATIN MADE FOR AN 11 INCREASE IN THE DOMESTIC PHARMACEUTICAL AND PROFESSIONAL BUSINESSES SALES OF HISMANAL AN ANTIHISTAMINE AND TOLECTIN AN ANTIINFLAMMATORY DRUG DECLINED CONSUMER PRODUCT SALES ROSE 37 DESPITE A FLAT DOMESTIC MARKET INTERNATIONAL SALES INCREASED 8 ATTRIBUTABLE TO STRONG PERFORMANCE IN MIDDLE EAST AND FAR EAST MARKETS AND IMPROVEMENT IN MANY LATIN AMERICAN BUSINESSES THE COMPANY SAID THE DOMESTIC MARKET WAS HURT IN PART BY A DOWNTURN IN OVERTHECOUNTER DRUG SALES BECAUSE OF A WEAK COLDANDFLU SEASON THE COMPANY SAID THERE IS BEAUTY IN THE BALANCE THEY PARTICIPATE IN SO MANY ASPECTS OF HEALTH CARE THAT THEY CONTINUE TO PRODUCE FAIRLY GOOD GROWTH EVEN IN FAIRLY HARD TIMES SAID KURT KRUGER AN ANALYST AT HAMBRECHT & QUIST JOHNSON & JOHNSON ALSO SAID IT WOULD REPURCHASE UP TO 500 MILLION OF ITS SHARES OUTSTANDING IN THE OPEN MARKET THE COMPANY HAS ABOUT 655 MILLION SHARES OUTSTANDING AT YESTERDAY'S CLOSING PRICE OF 42375 A SHARE DOWN 25 CENTS A 500 MILLION BUYBACK WOULD YIELD 118 MILLION SHARES THE COMPANY'S BOARD ALSO VOTED TO INCREASE THE QUARTERLY DIVIDEND BY 13 TO 26 CENTS A SHARE FROM 23 CENTS THE DIVIDEND IS PAYABLE JUNE 8 TO SHARES OF RECORD MAY 18 9304300079 930430 BIG THREE AND UAW PLAN TWODAY EVENT TO SHOW OFF INDUSTRY DETROIT USING 120 VEHICLES AND AN OUTDOOR DINNER TO BE ATTENDED BY HUNDREDS THE BIG THREE AND THE UNITED AUTO WORKERS UNION WILL STAGE AN UNPRECEDENTED TWODAY EVENT NEXT MONTH IN WASHINGTON TO SHOW OFF THE US AUTO INDUSTRY DURING THE MAY 2526 EVENT DUBBED DRIVE AMERICAN QUALITY GENERAL MOTORS CORP FORD MOTOR CO AND CHRYSLER CORP WILL PROVIDE VEHICLES FOR LAWMAKERS AND OTHER GOVERNMENT OFFICIALS TO DRIVE AROUND THE MALL ON CAPITOL HILL THE GALA DINNER WILL BE HOSTED BY THE BIG THREE'S CHIEF EXECUTIVE OFFICERS AND OWEN BIEBER THE UAW'S PRESIDENT THE DRIVE AMERICAN QUALITY EVENT IS THE LATEST IN A SERIES OF INITIATIVES BY THE UAW AND THE BIG THREE TO CAPITALIZE ON A SEEMINGLY MORE SYMPATHETIC ATTITUDE IN CONGRESS AND THE CLINTON ADMINISTRATION TOWARD DETROIT'S CONCERNS EARLIER THIS WEEK THE HEADS OF THE BIG THREE MET WITH MEMBERS OF PRESIDENT CLINTON'S CABINET TO DISCUSS A RANGE OF ISSUES A GM SPOKESMAN SAID PRESIDENT CLINTON HAS BEEN INVITED TO THE EVENT BUT HAS YET TO SAY WHETHER HE WILL ATTEND THE EVENT ALSO WILL INCLUDE DISPLAYS FROM THE US COUNCIL ON AUTOMOTIVE RESEARCH THE BIG THREE'S JOINTRESEARCH CONSORTIUM ORGANIZERS SAID THE EVENT'S MAIN FOCUS WILL BE TO DISPLAY THE IMPROVED QUALITY OF VEHICLES MADE BY UAW WORKERS AND THE BIG THREE BUT SPOKESMEN FOR THE EVENT SAID IT ALSO WILL SERVE TO HIGHLIGHT THE AMERICAN AUTOMOBILE INDUSTRY'S IMPORTANCE TO THE US ECONOMY IT'S IMPORTANT THAT THE PEOPLE WHO SHAPE THE POLICY IN THIS COUNTRY KNOW JUST WHERE THE AUTO INDUSTRY IS SAID A UAW SPOKESMAN 9304300078 930430 LETTERS TO THE EDITOR IN THE ABSENCE OF LOVE HATRED AND EVIL I WAS TOUCHED BY AMY DOCKSER MARCUS'S MARCH 31 PAGEONE ARTICLE AS HOLOCAUST MEMORY FADES ISRAEL FACES A DIFFICULT TRANSITION AT THE END OF THE ARTICLE A SURVIVOR MALKA DORFMAN IS QUOTED ASKING WHO WOULD WANT TO READ WHAT SHE WOULD WRITE DOWN I BELIEVE THE STORY OF EACH SURVIVOR MUST BE TOLD AND RECORDED THE ONLY MEMORY OF MANY OF THE SIX MILLION JEWISH VICTIMS IS THEIR EDICT TO THOSE LUCKY ENOUGH TO SURVIVE ZACHOR IT MEANS REMEMBER I SERVED AS A CHARTER MEMBER OF THE PRESIDENT'S COMMISSION ON THE HOLOCAUST AND THE US HOLOCAUST MEMORIAL COUNCIL SINCE 1979 I WAS THE ONLY CHILD OF A HOLOCAUST SURVIVOR ON BOTH PANELS I AM ALSO ON THE NEW YORK STATE HOLOCAUST MEMORIAL COMMISSION MY MOTHER IS A SURVIVOR OF THE HOLOCAUST WHO LOST A SISTER AND HER PARENTS MY FATHER WAS LUCKY ENOUGH TO VISIT THE WORLD'S FAIR IN 1939 IN NEW YORK BUT LEFT BEHIND HIS MOTHER AND FIVE BROTHERS AND SISTERS WHO WERE MURDERED BY THE NAZIS THE NEW IDENTITY ISRAEL'S POSTWAR GENERATION IS SEEKING SHOULD NEVER DILUTE THE MEANING OF THE HOLOCAUST EXTINCTION IS NOT AN HONOR I WAS BORN IN AMERICA BUT THE ATMOSPHERE IN MY HOME MANAGED TO RETAIN SOME OF THE OLD COUNTRY TRADITIONS IT PROVIDED ME WITH A PERSPECTIVE ON LIFE THAT GAVE JOY A STRONGER MEANING AND SORROW A COMPREHENSIBLE PLACE WITHOUT UNDUE DISTORTION I GUESS I AGREE WITH THE SURVIVORS WHO FEAR THE NEW GENERATION WILL NEVER UNDERSTAND AND WILL ULTIMATELY FORGET IT IS NATURAL TO KEEP ONE'S DISTANCE FROM SUCH AN UNPRECEDENTED HORROR PARTICULARLY IF ONE WASN'T DIRECTLY AFFECTED NEVERTHELESS I THINK IT WOULD BE BLASPHEMOUS FOR THE NEXT GENERATION IN ISRAEL OR ANYWHERE ELSE IN THE WORLD TO PUT THE HOLOCAUST BEHIND THEM THIS HORROR MUST BE TAUGHT AND STUDIED AND GIVEN A PLACE IN EVERYONE'S CONSCIOUSNESS THE OPENING OF THE US HOLOCAUST MEMORIAL MUSEUM WILL KEEP THE FLAME OF REMEMBRANCE ALIVE ALTHOUGH TIMES HAVE CHANGED THE DIGNITY OF MEMORY FOR THE SURVIVORS SHOULD NEVER DIMINISH EVEN AS A CHILD OF A HOLOCAUST SURVIVOR THERE IS A TEMPTATION TO AVOID PAINFUL THOUGHTS ABOUT THAT HORRIBLE PERIOD OF JEWISH HISTORY BUT I CAN'T ALLOW MYSELF THAT LUXURY CLEARLY ONE WOULD RATHER GO TO THE BAHAMAS FOR VACATION THAN TOURING AUSCHWITZ BUT HAVING TOURED AUSCHWITZ TREBLINKA AND BABI YAR IN 1979 I CAN SAY THAT MY LIFE WAS CHANGED IN A POSITIVE WAY BY THAT EXPERIENCE BY KEEPING THE MEMORY ALIVE YOU FEEL FULFILLED IN YOUR OBLIGATION TO THE HELPLESS VICTIMS THAT YOU WILL NEVER FORGET THEM THE HOLOCAUST WILL ALWAYS HAVE AN IMPACT BUT DON'T DEPERSONALIZE IT JUST BECAUSE WE SAY NEVER AGAIN DOESN'T MEAN IT IS IMPOSSIBLE HATRED DOESN'T SEEM TO GO AWAY WHY SHOULD MEMORY THE ARTICLE STATES FOR INSTANCE A PROGRAM STARTED IN 1988 AND SUPPORTED BY THE ISRAELI GOVERNMENT HAS PERMITTED 6000 HIGH SCHOOLERS TO TRAVEL TO POLISH DEATH CAMPS WITH SURVIVORS WHO EXPLAIN WHAT HAPPENED ON THE SITES MANY OF WHICH HAVE BEEN PRESERVED AS MEMORIALS THE FACT IS THE CAMPS IN QUESTION WERE NOT POLISH BUT GERMAN CAMPS LOCATED IN POLAND THE USE OF THE ADJECTIVE POLISH IS HERE CALLOUSLY MISAPPLIED AS ALSO MANY CHRISTIAN POLES HAVE PERISHED IN THE SAME CAMPS WOULD YOU CALL CAMPS OPERATED DURING WORLD WAR II BY THE JAPANESE FOR AMERICAN PRISONERS OF WAR IN THE PHILIPPINES PHILIPPINO OR JAPANESE CAMPS MS MARCUS'S EXCELLENT ARTICLE MENTIONS THAT THERE WILL BE THREE MAJOR MUSEUMS/MEMORIALS IN THE US WHILE SHE NAMES THE US HOLOCAUST MEMORIAL MUSEUM IN WASHINGTON AND THE SIMON WIESENTHAL CENTER'S MUSEUM OF TOLERANCE IN LOS ANGELES SHE NEGLECTS TO MENTION THE INSTITUTION SLATED FOR NEW YORK CITY A LIVING MEMORIAL TO THE HOLOCAUST/MUSEUM OF JEWISH HERITAGE WITH A MAJOR COMMITMENT TO PUBLIC EDUCATION FOR ALL AGES NATIONALITIES AND ETHNIC GROUPS THE MUSEUM OF JEWISH HERITAGE WILL SEEK TO ADDRESS THE GENERATIONAL CONCERNS RAISED IN MS MARCUS'S ARTICLE BY PLACING THE HOLOCAUST WITHIN THE CONTEXT OF MODERN JEWISH AND GENERAL WORLD HISTORY OUR MUSEUM WILL HONOR THE CONTINUITY OF JEWISH CULTURE AND CIVILIZATION AS WELL AS MEMORIALIZE THE SIX MILLION THE MUSEUM OF JEWISH HERITAGE IS SCHEDULED TO OPEN IN BATTERY PARK CITY IN 1995 MS MARCUS'S ARTICLE ON THE HOLOCAUST PROMPTS THIS MY FIRST LETTER TO YOU IN 20 YEARS AS A READER I AM NOT A JEW NOR DO I HAVE ANY IMMEDIATE RELATIVES OR FRIENDS WHO PERISHED IN THE HOLOCAUST THESE CIRCUMSTANCES DO NOT DISQUALIFY ME AT AGE 46 FROM THINKING AND FEELING ABOUT THOSE FRIGHTENING EVENTS 50 YEARS AGO THE HOLOCAUST LIKE NOTHING ELSE IN MY EXPERIENCE CONJURES UP ANGER FEAR AND COMPASSION NOTHING MAKES ME FEEL LIKE CRYING AS MUCH AS MY THOUGHTS OF THAT AWFUL TIME WITH ITS AWFUL DEEDS BECAUSE THE HOLOCAUST TEACHES US CERTAIN TRUTHS IT CANNOT BE ALLOWED TO SLIP FROM OUR COLLECTIVE MEMORY IT TEACHES US THE TERRIBLE PRICE TYRANNY EXACTS ON REAL PEOPLE PARTICULARLY ON THE DEFENSELESS IT TEACHES US THAT HUMANKIND HAS THE CAPACITY FOR UNTHINKABLE CRUELTY ON THE ONE HAND AND AN AMAZING STRENGTH OF WILL ON THE OTHER IT TEACHES US THAT WHEN WE DISMISS LOVING ONE ANOTHER FROM OUR PHILOSOPHY OF LIFE IT IS REPLACED FOR SOME STRANGE REASON BY HATRED THE HOLOCAUST IS THE JUSTIFICATION FOR ALL OF US WHATEVER OUR COLOR WHEREVER WE LIVE WHOMEVER WE CALL OUR GOD TO SCREAM IN THE FACE OF THE OPPRESSOR NEVER AGAIN 9304300077 930430 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 GEON CO INITIAL OFFERING OF 13 MILLION COMMON SHARES PRICED AT 18 APIECE THROUGH MANAGING UNDERWRITER GOLDMAN SACHS & CO GEON IS A UNIT OF BF GOODRICH CO MGI PROPERTIES 2 MILLION COMMON SHARES PRICED AT 13875 APIECE THROUGH UNDERWRITERS OPPENHEIMER & CO AND PRUDENTIAL SECURITIES INC OFFSHORE PIPELINES INC 4 MILLION COMMON SHARES PRICED AT 14 APIECE THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS TODAY'S MAN INC 2 MILLION COMMON SHARES PRICED AT 16 APIECE THROUGH UNDERWRITERS LED BY ALEX BROWN & SONS CO WASHINGTON STATE 611 MILLION GENERAL OBLIGATION BONDS AND MOTOR VEHICLE FUEL TAX GENERAL OBLIGATION BONDS PRED BY A SMITH BARNEY HARRIS UPHAM & CO GROUP THE STATE'S ISSUE INCLUDES 250 MILLION SERIES 1993B VARIOUSPURPOSE BONDS 229 MILLION SERIES R93B VARIOUS PURPOSE BONDS 1174 MILLION SERIES R93C MOTOR VEHICLE FUEL TAX BONDS AND 15 MILLION SERIES DD12 AND SERIES CC9 MOTOR VEHICLE AND FUEL TAX BONDS OVERALL YIELDS NOW RANGE FROM 225 IN 1993 TO 575 IN 2018 ALL OF THE BONDS ARE NONCALLABLE THE ISSUE HAS RECEIVED A DOUBLEA RATING FROM MOODY'S INVESTORS SERVICE INC STANDARD & POOR'S CORP AND FITCH INVESTORS SERVICE INC FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY JP MORGAN SECURITIES INC THE OFFERING SERIES GOLD 1532 IS BACKED BY FREDDIE MAC GOLD 7 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 82 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2917 YEARS FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES GOLD 1533 IS BACKED BY FREDDIE MAC GOLD 7 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 813 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2967 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING SERIES 199387 IS BACKED BY THE AGENCY'S 30YEAR 7 SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 297 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 400 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY PAINEWEBBER INC THE OFFERING SERIES 199386 IS BACKED BY FANNIE MAE 15YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 75 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1475 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 3563 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 199388 IS BACKED BY THE AGENCY'S 7YEAR 6 BALLOON SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 6625 AND WEIGHTED AVERAGE REMAINGING TERM TO MATURITY OF 68 YEARS BRITISH GAS INTERNATIONAL FINANCE BV UK PARENT 150 BILLION ITALIAN LIRE OF 10 3/4 EUROBONDS DUE MAY 27 2003 AT ISSUE PRICE 10171 VIA BANCA D'AMERICA E D'ITALIA SUBSIDIARY OF DEUTSCHE BANK AG YIELD 108 ANNUAL AT 9970 BREAKEVEN FOR COMANAGING BANKS GUARANTOR BRITISH GAS PLC FEES 2 POINTS BUPA FINANCE PLC UK 100 MILLION OF SUBORDINATED EUROBONDS DUE DEC 3 2018 VIA SAMUAL MONTAGU & CO LTD AND J HENRY SCHRODER WAGG & CO LTD INTEREST 10 1/2 ANNUAL ISSUE PRICE 100095 REOFFERED AT 9822 TO YIELD 1069 SPREAD 185 BASIS POINTS ABOVE 9 GILT DUE 2012 GUARANTEED ON A SUBORDINATED BASIS BY BRITISH UNITED PROVIDENT ASSOCIATION LTD CALLABLE AT PAR IN DECEMBER 2013 IF NOT CALLED INTEREST RATE FOR REMAINING FIVE YEARS RESET AT HIGHER OF EXISTING RATE OR 250 BASIS POINTS ABOVE THEN PREVAILING FIVEYEAR GILT FEES 2 1/2 POINTS CREDIT COMMERCIAL DE FRANCE FRANCE 150 MILLION OF COLLARED FLOATING RATE EURONOTES DUE MAY 2003 AT ISSUE AND FIXED REOFFER PRICE 99 3/4 VIA UBS LTD AND GOLDMAN SACHS INTERNATIONAL LTD INTEREST FLOATS AT 25 BASIS POINTS BELOW SIXMONTH LIBOR FOR US DOLLARS SUBJECT TO MINIMUM 5 1/8 MAXIMUM 8 FEES 1/2 GENERAL ELECTRIC CAPITAL CANADA INC US PARENT 150 MILLION CANADIAN DOLLARS OF 7 1/4 EUROBONDS DUE NOV 27 1998 AT ISSUE PRICE 100725 VIA WOOD GUNDY INC REOFFERED AT 99125 TO YIELD 747 MARGIN 45 BASIS POINTS ABOVE CANADA'S 6 1/2 NOTE DUE 1998 GUARANTOR GENERAL ELECTRIC CAPTIAL CORP FEES 1 7/8 POINTS MORTGAGE BANK OF THE KINGDOM OF DENMARK DENMARK 100 MILLION OF COLLARED FLOATING RATE EURONOTES DUE JUNE 1 2005 AT ISSUE AND FIXED REOFFER PRICE PAR VIA KIDDER PEABODY INTERNATIONAL LTD INTEREST FLOATS AT 30 BASIS POINTS BELOW SIXMONTH LONDON INTERBANK OFFERED RATE FOR US DOLLARS SUBJECT TO MINIMUM 5 MAXIMUM 8 GUARANTOR KINGDOM OF DENMARK FEES 1/2 POINT 9304300076 930430 PROMISES PROMISES WITH THE END OF THE CLINTON PRESIDENCY'S FIRST 100 DAYS STEPHEN MOORE AND DAVID J BYRD THOUGHT THIS MIGHT BE A GOOD TIME TO REVISIT SOME OF MR CLINTON'S MORE MEMORABLE PRONOUNCEMENTS WE EXCERPT FROM THEIR COMPILATION FOR THE HOUSE REPUBLICAN CONFERENCE CANDIDATE BILL CLINTON FLORIDA PRIMARY MARCH 27 1992 I THINK PRESIDENT BUSH PLAYED RACIAL POLITICS WITH THE HAITIAN REFUGEES I WOULDN'T BE SHIPPING THOSE POOR PEOPLE BACK PRESIDENTELECT CLINTON IN A RADIO ADDRESS JAN 14 1993 THE PRACTICE OF RETURNING THOSE WHO FLED HAITI BY BOAT WILL CONTINUE FOR THE TIME BEING AFTER I BECOME PRESIDENT THOSE WHO DO LEAVE HAITI BY BOAT WILL BE STOPPED AND DIRECTLY RETURNED BY THE UNITED STATES COAST GUARD CANDIDATE CLINTON CAMPAIGN AD JANUARY 1992 I'VE OFFERED A COMPREHENSIVE PLAN TO GET OUR ECONOMY MOVING AGAIN IT STARTS WITH A TAX CUT FOR THE MIDDLE CLASS CANDIDATE CLINTON JAN 19 1992 I WANT TO MAKE IT VERY CLEAR THAT THIS MIDDLECLASS TAX CUT IN MY VIEW IS CENTRAL TO ANY ATTEMPT WE'RE GOING TO MAKE TO HAVE A SHORTTERM ECONOMIC STRATEGY PRESIDENTELECT CLINTON JAN 14 1993 FROM NEW HAMPSHIRE FORWARD FOR REASONS THAT ABSOLUTELY MYSTIFY ME THE PRESS THOUGHT THE MOST IMPORTANT ISSUE IN THE RACE WAS THE MIDDLECLASS TAX CUT I NEVER DID MEET ANY VOTER WHO THOUGHT THAT PRESIDENT CLINTON FIRST OVAL OFFICE ADDRESS FEB 15 1993 I HAD HOPED TO INVEST IN YOUR THE MIDDLE CLASS'S FUTURE WITHOUT ASKING MORE OF YOU AND I'VE WORKED HARDER THAN I'VE EVER WORKED IN MY LIFE TO MEET THAT GOAL BUT I CAN'T CANDIDATE CLINTON LAST PRESIDENTIAL DEBATE LANSING MICH OCT 19 1992 THE REAL MISTAKE HE PRESIDENT BUSH MADE WAS THE READ MY LIPS' PROMISE IN THE FIRST PLACE YOU JUST CAN'T PROMISE SOMETHING LIKE THAT JUST TO GET ELECTED IF YOU KNOW THERE'S A GOOD CHANCE THAT CIRCUMSTANCES MAY OVERTAKE YOU PRESIDENTELECT CLINTON PRESS CONFERENCE JAN 14 1993 WE HAVE A STRUCTURAL DEFICIT THAT IS TOO HIGH THE AMERICAN PEOPLE WOULD THINK I WAS FOOLISH IF I SAID I WILL NOT RESPOND TO CHANGING CIRCUMSTANCES CANDIDATE CLINTON SEPT 8 1992 THE ONLY PEOPLE WHO WILL PAY MORE INCOME TAXES ARE THE WEALTHIEST 2 THOSE LIVING IN HOUSEHOLDS MAKING OVER 200000 A YEAR TAX FOUNDATION ANALYSIS OF CLINTON BUDGET FEBRUARY 1993 THE CLINTON BUDGET WILL RAISE THE TOP MARGINAL INCOME TAX RATE STARTING AT 115000 IN INDIVIDUAL INCOME PRESIDENT CLINTON AT A PRESS CONFERENCE MARCH 23 1993 LET ME SAY YOU WILL READ THE FISCAL STIMULUS BILL FOR YEARS IN VAIN AND NOT FIND THOSE PORKBARREL PROJECTS LINE ITEMS ON PRESIDENT CLINTON'S STIMULUS BILL INCLUDED 14 MILLION FOR DRAWINGS OF 28 SIGNIFICANT STRUCTURES AND ENGINEERING ACHIEVEMENTS PAGE 10 LINE 10 THE BUDGET JUSTIFICATION DOCUMENT ALSO CONTAINED FUNDING FOR FISH ATLASES WHITEWATER RAFTING AND THE CONSTRUCTION OF A CASINO CANDIDATE CLINTON TIME MAGAZINE INTERVIEW JULY 20 1992 WHEN I BEGAN THE CAMPAIGN THE PROJECTED DEFICIT WAS 250 BILLION NOT 400 BILLION PRESIDENT CLINTON IN A TELEVISED TOWN HALL FEBRUARY 10 1993 I HAVE SOME BAD NEWS THE DEFICIT IS 50 BILLION A YEAR BIGGER THAN I WAS TOLD BEFORE THE ELECTION PRESIDENT CLINTON FEB 10 1993 MY PLAN IS BASICALLY 5050 SPENDING CUTS AND REVENUES THE FIRST FOUR YEARS FROM THE CONGRESSIONAL BUDGET OFFICE ANALYSIS OF CLINTON BUDGET MARCH 1993 NET NEW TAXES 267 BILLION NET SPENDING CUTS 55 BILLION THAT IS 83 TAXES 17 SPENDING CUTS PRESIDENT CLINTON IN A SPEECH TO THE US CHAMBER OF COMMERCE FEB 23 1993 I'M SURE AFTER ALMOST FIVE WEEKS IN OFFICE THAT THERE ARE MORE BUDGET CUTS COMING GEORGE STEPHANOPOULOS THE NEXT DAY THE PRESIDENT HAD NO SPECIFIC CUTS IN MIND AND NO SCHEDULE FOR MAKING THEM PRESIDENT CLINTON STATE OF THE UNION ADDRESS FEB 17 1993 BECAUSE SMALL BUSINESS HAS CREATED SUCH A HIGH PERCENTAGE OF ALL THE NEW JOBS IN OUR NATION OVER THE LAST 10 TO 15 YEARS OUR PLAN INCLUDES THE BOLDEST TARGETED INCENTIVES FOR SMALL BUSINESS IN HISTORY NATIONAL FEDERATION OF INDEPENDENT BUSINESS REPLYING TO THE CLINTON ECONOMIC PLAN MARCH 16 1993 THE PLAN PROPOSES RAISING TAXES SIGNIFICANTLY ON THE VERY SEGMENTS OF SOCIETY THAT CREATE NEW JOBS SMALLBUSINESS OWNERS 80 OF BUSINESSES IN AMERICA ARE UNINCORPORATED AND PAY TAXES AS INDIVIDUALS PRESIDENT CLINTON ON FUNDING HEALTH CARE MARCH 24 1993 WE ARE LOOKING AT A LOT OF DIFFERENT OPTIONS BUT THE LAST THING I THINK WE OUGHT TO DO THE LAST PLACE WE OUGHT TO LOOK IS TO ASK THE EMPLOYERS AND EMPLOYEES OF AMERICA WHO ARE PAYING TOO MUCH FOR THEIR HEALTH CARE RIGHT NOW TO PAY MORE THE WASHINGTON TIMES APRIL 23 1993 MRS CLINTON TOLD THE SENATE FINANCE COMMITTEE THAT THE WHITE HOUSE HAS DROPPED ITS OPPOSITION TO TAXING EMPLOYEES' BENEFITS AND WILL RECOMMEND TAXING THE PORTION OF THOSE BENEFITS EXCEEDING THE COST OF A BASIC PACKAGE OF HEALTH BENEFITS PRESIDENT CLINTON FEB 19 1993 I DID NOT MEAN TO FLOAT A TRIAL BALLOON ABOUT A NATIONAL SALES TAX TO PAY FOR A NEW HEALTH PLAN IT'S NOT UNDER CONSIDERATION AT THIS TIME THAT'S 10 TO 15 YEARS AWAY DEPUTY BUDGET DIRECTOR ALICE RIVLIN ON FUNDING HEALTHCARE REFORM APRIL 14 1993 A VAT IS CLEARLY A POSSIBLE CANDIDATE I THINK A VAT HAS A GOOD DEAL TO RECOMMEND IT PRESIDENT CLINTON FEB 22 1993 FOR YEARS THERE HAVE BEEN THOSE WHO SAY WE OUGHT TO REDUCE THE DEFICIT BY RAISING THE GAS TAX A WHOLE LOT THAT'S FINE IF YOU LIVE IN THE CITY AND RIDE MASS TRANSIT TO WORK IT'S NOT SO GOOD IF YOU LIVE IN THE COUNTRY AND DRIVE YOURSELF TO WORK SO I REJECTED A BIG GAS TAX NEW YORK TIMES SAME DAY THE NEW BTU TAX WOULD RAISE THE RETAIL PRICE OF GASOLINE BY 10 CENTS A GALLON PRESIDENT CLINTON IN A VISION OF CHANGE FOR AMERICA RELEASED FEB 17 1993 OUR PLAN CALLS FOR HIGHER FEES FOR GRAZING FIRST TIME ROYALTIES ON GOLD AND OTHER HARD ROCK MINING AND ELIMINATION OF BELOWCOST TIMBER SALES ON NATIONAL FORESTS WASHINGTON POST HEADLINE APRIL 2 1993 CLINTON CRITICIZED FOR POLICY SHIFT ON PUBLIC LANDS PRESIDENT CLINTON BEFORE THE NATIONAL GOVERNORS ASSOCIATION FEB 2 1993 I BELIEVE TWO YEARS AFTER A TRAINING PROGRAM IS COMPLETED YOU HAVE TO ASK PEOPLE TO TAKE A JOB THERE MUST BE A CERTAIN TIME BEYOND WHICH PEOPLE DON'T DRAW A CHECK FOR DOING NOTHING WHEN THEY CAN BE DOING SOMETHING HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA FEB 3 1993 PRESIDENT CLINTON'S IDEA OF REQUIRING RECIPIENTS TO TAKE A JOB AFTER TWO YEARS ON WELFARE HAS BEEN INTERPRETED TOO NARROWLY CANDIDATE CLINTON IN PUTTING PEOPLE FIRST JUNE 1992 I WILL ATTACK VIOLENT CRIME BY PUTTING ANOTHER 100000 POLICE OFFICERS ON THE STREET THE WASHINGTON POST APRIL 16 1993 TUCKED AWAY INSIDE THE JUSTICE DEPARTMENT BUDGET WAS 50 MILLION FOR COMMUNITY POLICING GRANTS JUST ENOUGH MONEY BUDGET DOCUMENTS SAY TO HIRE 3000 NEW POLICE OFFICERS OVER TWO YEARS A MERE 3 PERCENT OF THE PRESIDENT'S GOAL PRESIDENT CLINTON INAUGURAL ADDRESS JANUARY 20 1993 IT WILL NOT BE EASY IT WILL REQUIRE SACRIFICE CANDIDATE CLINTON ON GOOD MORNING AMERICA JUNE 23 1992 IF I'M ELECTED I'LL HAVE THE BILLS READY THE DAY AFTER I'M INAUGURATED I'LL SEND THEM TO CONGRESS AND WE'LL HAVE A 100DAY PERIOD SPOKESWOMAN DEE DEE MYERS JAN 12 1993 PEOPLE OF THE PRESS ARE EXPECTING TO HAVE SOME 100DAY PROGRAM WE NEVER EVER HAD ONE CANDIDATE CLINTON JUNE 23 1992 ON GOOD MORNING AMERICA MY FIRST ONE HUNDRED DAYS WILL BE THE MOST PRODUCTIVE IN MODERN HISTORY 9304300075 930430 BKC EXPECTS TO POST UP TO 16 PROFIT RISE FOR FISCAL 2ND PERIOD LAWRENCE MASS BKC SEMICONDUCTORS INC CITING AN INCREASE IN MILITARY PRODUCT ORDERS AND ADDED BUSINESS FROM A COMMERCIAL MARKETING AGREEMENT SAID IT EXPECTS TO REPORT A RISE OF AS MUCH AS 16 IN NET INCOME FOR THE SECOND QUARTER ENDED MARCH 31 ON A 25 TO 30 REVENUE RISE GERALD BILLADEAU BKC PRESIDENT SAID IN AN INTERVIEW THAT NET WAS 110000 TO 125000 OR NINE CENTS TO 10 CENTS A SHARE A YEAR AGO BKC REPORTED NET OF 108000 OR EIGHT CENTS A SHARE REVENUE WAS 25 MILLION TO 26 MILLION COMPARED WITH 2 MILLION A YEAR AGO MR BILLADEAU SAID BKC WHICH MAKES DISCRETE OR SINGLEFUNCTION SEMICONDUCTOR DEVICES SAID REVENUE WAS BOOSTED BY MILITARY ORDERS FOR ITS RECTIFIER PRODUCTS WHICH DIRECT ELECTRICAL CURRENTS AND ITS ZENER DIODES PRODUCTS WHICH MAINTAIN VOLTAGE LEVELS IN ELECTRONIC CIRCUITS MR BILLADEAU SAID A MARKETING AGREEMENT WITH ITT CORP UNDER WHICH BKC SELLS CERTAIN ITT SEMICONDUCTOR PRODUCTS IN THE US GENERATED BETWEEN 375000 TO 390000 IN REVENUE IN THE QUARTER AND SHOULD CONTRIBUTE ABOUT 2 MILLION IN REVENUE IN FISCAL 1993 BKC BASED IN LAWRENCE MASS WAS FOUNDED IN 1985 BY THREE FORMER ITT EMPLOYEES IT WENT PUBLIC IN AUGUST 1992 AND HAS ABOUT 100 CUSTOMERS INCLUDING MOTOROLA INC HONEYWELL INC GENERAL MOTORS CORP AND POLAROID CORP IN THE FIRST HALF BKC EXPECTS TO REPORT NET OF 220000 TO 230000 OR 17 CENTS TO 18 CENTS A SHARE A YEAR AGO THE COMPANY HAD NET OF 160000 OR 12 CENTS A SHARE REVENUE WAS ABOUT 5 MILLION COMPARED WITH 4 MILLION A YEAR AGO 9304300074 930430 ENVIRONMENT MANAGING WASTE BY JEFF BAILEY ENVIRONMENTAL ACTIVISTS AND NIMBYS NOTINMYBACKYARD TYPES GET A LOT OF ATTENTION FOR ENCOURAGING RECYCLING AND OPPOSING HAZARDOUSWASTE DUMPING BUT BIG ENVIRONMENTAL CHANGES IN THE WASTE BUSINESS THESE DAYS ARE AS LIKELY TO RESULT FROM ECONOMICS ONE EXAMPLE IS THE SPREAD OF PAYASYOUTHROW GARBAGE COLLECTION INSTEAD OF BEING ALLOWED TO SET OUT UNLIMITED AMOUNTS OF TRASH INCLUDING OLD APPLIANCES AND THE KITCHEN SINK HOUSEHOLDS ARE CHARGED BY THE BAG OR CAN WHEN CONSUMERS MUST PAY TO GET RID OF TRASH THEY GENERATE LESS THE NUMBER OF COMMUNITIES USING THE APPROACH HAS GROWN TO MORE THAN 1000 FROM JUST A HANDFUL THROUGH MOST OF THE 1980S ACCORDING TO SYNERGIC RESOURCES A SEATTLE CONSULTANT TO MUNICIPAL GARBAGE OFFICIALS BY NEXT YEAR 1800 US COMMUNITIES WILL PAY AS THEY THROW ESTIMATES LISA A SKUMATZ A DIRECTOR OF THE FIRM ENVIRONMENTALLY CORRECT STATES SUCH AS WASHINGTON AND MINNESOTA LEAD THE WAY BUT OTHERS INCLUDING PENNSYLVANIA AND ILLINOIS ALSO ARE ENCOURAGING THE TREND THROUGH LEGISLATION THEY HAVE ORDERED MUNICIPALITIES TO REDUCE THE AMOUNT OF TRASH THAT GOES TO DUMPS THAT CAN BE BAD NEWS FOR DUMP OWNERS WHO CHARGE BY VOLUME OR WEIGHT COMMUNITIES THAT CHARGE BY VOLUME REPORT TRASH REDUCTIONS OF 15 TO 45 IT DOESN'T HAPPEN OVERNIGHT HOUSEHOLDS IN SEATTLE A PAYASYOUTHROW PIONEER CUT THE NUMBER OF TRASH CANS THEY PUT OUT TO ONE A WEEK IN 1989 FROM 35 IN 1981 CONSUMERS REDUCE THE AMOUNT OF TRASH THEY GENERATE PARTLY BY BUYING SOME PRODUCTS IN LESS BULKY PACKAGING THEY TEND TO RECYCLE MORE CONSCIENTIOUSLY AND SOME COMMUNITIES FEAR A FEW RESIDENTS ILLEGALLY DUMP THEIR TRASH INTO COMMERCIAL DUMPSTERS OR VACANT LOTS MANY PAYASYOUTHROW PROGRAMS COLLECT DISPOSAL FEES BY SELLING STICKERS OR EASILY IDENTIFIABLE BAGS THAT RESIDENTS MUST USE THAT WAY SANITATION CREWS CAN KEEP HEAVING WITHOUT STOPPING TO COUNT WITH ENVIRONMENTAL GROUPS DEFEATING MOST EFFORTS TO SITE NEW HAZARDOUSWASTE DUMPS AND INCINERATORS GOVERNMENT AND INDUSTRY OFFICIALS ONCE FEARED THEY WOULD BE STUCK WITH HUGE AMOUNTS OF TOXIC MATERIALS THAT COULDN'T BE LEGALLY DISPOSED OF INSTEAD LICENSED HAZARDOUSWASTE DISPOSAL CAPACITY SEEMS ABUNDANT SAYS HUGH F HOLMAN AN ANALYST AT ALEX BROWN & SONS BALTIMORE EXISTING DUMPS HAVE ABOUT 50 YEARS OF CAPACITY LEFT HE SAYS AND ACCORDING TO RECENT ENVIRONMENTAL PROTECTION AGENCY FIGURES THE US ALSO HAS PLENTY OF INCINERATION CAPACITY LICENSED HAZARDOUSWASTE INCINERATORS RAN AT 74 OF CAPACITY IN 1990 THOUGH SOME IMPORTANT COMMERCIAL INCINERATORS HAVE SINCE BEEN TAKEN OUT OF OPERATION MUCH CAPACITY REMAINS UNUSED IN EAST LIVERPOOL OHIO GREENPEACE HAS WAGED A LEGAL AND PUBLICRELATIONS WAR AGAINST A NEW INCINERATOR BUT THE LAW OF SUPPLY AND DEMAND COULD ULTIMATELY PROVE MORE THREATENING LAST MONTH DUPONT AND BASF CANCELED AGREEMENTS TO EACH SUPPLY ONETHIRD OF THE WASTE THAT WAS TO GO TO THE PLANT BUILT BY WASTE TECHNOLOGIES INDUSTRIES A UNIT OF VON ROLL OF GERMANY THE REASON THEY DIDN'T NEED THE CAPACITY HAZARDOUSWASTE DISPOSAL CAPACITY WENT FROM A FEARED SHORTAGE TO AN ACTUAL GLUT IN PART BECAUSE COMPANIES LIKE DUPONT FACING RISING DISPOSAL COSTS AND POTENTIAL CLEANUP LIABILITY OVERHAULED PRODUCTION METHODS TO REDUCE WASTE VOLUME ALSO CLEANUP OF OLD MESSES WHICH CAN INVOLVE MOVING MOUNTAINS OF WASTE TO NEW SITES HAS GONE MUCH MORE SLOWLY THAN EXPECTED MANY HAZARDOUSWASTE INDUSTRY OFFICIALS BLAME THE RECESSION FOR LOW VOLUME BUT MR HOLMAN SAYS THE BUSINESS WILL NEVER RETURN TO THE PROFITABILITY AND GROWTH OF THE MIDTOLATE 1980S GENERATORS ARE GENERATING LESS WASTE ENVIRONMENTALISTS FOUGHT HARD FOR REGULATIONS TO MAKE GARBAGE DUMPS LESS LIKELY TO FOUL GROUND WATER THE GOAL MAY BE ACHIEVED BUT NOT ENTIRELY BY THE EXPECTED MEANS THE RULES WHICH WILL TAKE EFFECT IN OCTOBER WERE EXPECTED TO CLOSE AS MANY AS HALF OF THE NATION'S 6000 DUMPS FORCING TRASH TO DISPOSAL SITES THAT ARE MORE ENVIRONMENTALLY SOUND BUT CONCERNS ARE GROWING THAT THE ENVIRONMENTAL PROTECTION AGENCY'S IMPLEMENTATION OF THE RULES KNOWN AS SUBTITLE D WILL ALLOW MANY OLDER MUNICIPAL DUMPS TO STAY OPEN BEYOND THE DEADLINE TOWNS AND COUNTIES ARE BALKING AT THE COSTS OF COMPLIANCE PARTICULARLY OF GUARANTEEING LONGTERM MONITORING OF SITES SOME ENVIRONMENTALISTS FEAR MORE TRASH WILL GO TO LEAKY DUMPS THOUGH AN EPA SPOKESWOMAN PROMISES NO BACKSLIDING MARKET FORCES IN THE GARBAGE BUSINESS HOWEVER MAY ALLEVIATE THE CONCERNS A GLUT OF DISPOSAL CAPACITY HAS MADE THE BUSINESS MUCH MORE COMPETITIVE TO CUT COSTS THE NATION'S TWO DOMINANT WASTE HAULERS WASTE MANAGEMENT AND BROWNINGFERRIS INDUSTRIES ARE TAKING MORE OF THE TRASH THEY HAUL TO THEIR OWN DUMPS WHICH ARE MOSTLY EXPECTED TO MEET THE NEW REQUIREMENTS THAT ISN'T A GUARANTEE AGAINST POLLUTION BOTH COMPANIES HAVE MANY ENVIRONMENTAL VIOLATIONS IN THEIR PAST BUT BOTH ALSO HAVE VAST FINANCIAL RESOURCES TO FUND ANY CLEANUPS THAT MIGHT BE NEEDED THEY HAD TO REOPEN THE DUMP TO CLOSE IT A CITYOWNED DUMP IN NEW ORLEANS CLOSED SINCE 1988 HAS BEGUN TAKING TRASH AGAIN SO WORKERS CAN BUILD A STEEPER MOUNTAIN OF WASTE THAT WILL LET MORE WATER DRAIN OFF THE SIDES INSTEAD OF SEEPING THROUGH THE DUMP WHICH CAN CONTAMINATE GROUND WATER THE NATIONAL SOLID WASTE MANAGEMENT ASSOCIATION SAYS 19 OF TRASH HAULERS SURVEYED IN NOVEMBER SAID THEY EXPERIENCED A SHORTAGE OF DRIVERS LAST YEAR OR EXPECTED ONE THIS YEAR 9304300073 930430 GODREJ & BOYCE'S SOAP SUBSIDIARY TESTS STOCKMARKET WATERS IN INDIA BY SUMAN DUBEY STAFF REPORTER OF THE WALL STREET JOURNAL BOMBAY INDIA THERE'S A STORY TOLD IN THE OFFICES OF GODREJ SOAPS LTD ABOUT THE TIME THE PRESIDENT OF PROCTER & GAMBLE CO FIRST VISITED INDIA HE SAW GODREJ'S PRODUCTS IN SHOP WINDOWS AND ASKED WHY DON'T WE BUY THIS COMPANY GODREJ SOAPS WASN'T FOR SALE AND INSTEAD OF ACQUIRING IT P&G LAST YEAR SIGNED A JOINTVENTURE AGREEMENT WITH IT BUT THE 65YEAROLD GODREJ SOAPS IS NOW SELLING A SLICE OF ITSELF THE GODREJ & BOYCE MANUFACTURING CO SUBSIDIARY THIS WEEK BECAME THE FIRST UNIT OF INDIA'S LARGEST CLOSELY HELD CORPORATE GROUP TO GO PUBLIC IT'S BEEN A DIFFICULT DECISION TO MAKE SAYS GODREJ & BOYCE'S 43YEAROLD MANAGING DIRECTOR JAMSHYD GODREJ BUT WITH INDIA'S ECONOMICREFORM PROGRAM LAUNCHED IN 1991 REMOVING RESTRAINTS ON LARGE BUSINESSES LIKE THE GODREJ GROUP HE SAYS THE CURRENT SCENARIO IS A GOOD ONE THAT'S WHY WE'RE GOING PUBLIC THE CLOSELY HELD CONGLOMERATE'S DECISION TO TEST THE STOCKMARKET WATERS MAKES GODREJ SOAPS' 9912 MILLION RUPEE 319 MILLION SHARE ISSUE WHICH OPENED TUESDAY PROBABLY THE MOST UNUSUAL EQUITY OFFERING SINCE LAST YEAR WHEN INDIAN PETROCHEMICALS CORP BECAME THE FIRST STATEOWNED ENTERPRISE TO GO DIRECTLY INTO THE MARKET WITH A 32 BILLION RUPEE PUBLIC ISSUE BUT MARKET SENTIMENT HAS ALTERED SIGNIFICANTLY SINCE THEN CONTINUING TO WORSEN IN THE WAKE OF LAST YEAR'S 14 BILLION SECURITIES SCANDAL THE BOMBAY STOCK EXCHANGE SENSITIVE INDEX THE MARKET'S PREFERRED BAROMETER CONTINUED ITS YEARLONG RETREAT LAST WEEK PLUNGING 200 POINTS TO CLOSE LAST FRIDAY AT 210067 THAT WAS NEARLY A YEAR TO THE DAY AFTER THE INDEX HIT ITS HIGHESTEVER CLOSING LEVEL OF 446732 ON APRIL 22 1992 SHORTLY BEFORE THE SCANDAL WAS EXPOSED THE EUPHORIA OF MAKING A QUICK KILLING HAS EVAPORATED SAYS PRITHVI HALDEA OF PRIME DATA BASE A RESEARCH COMPANY THE SECONDARY MARKET HAS FALLEN DRAMATICALLY AND A HEALTHY SECONDARY MARKET IS VERY IMPORTANT FOR A HEALTHY PRIMARY MARKET CONSEQUENTLY OF 72 PUBLIC ISSUES LAST MONTH 53 HAD TO EXTEND THEIR CLOSING DATES ACCORDING TO PRIME SEVERAL ISSUES HAVE MANAGED TO RAISE JUST 10 TO 15 OF THEIR TARGETED SUBSCRIPTIONS FALLING BACK ON THEIR UNDERWRITERS FOR THE REST THE TREND HAS CONTINUED INTO APRIL GODREJ SOAPS' LEAD MANAGERS ACKNOWLEDGE THE CHANGED CONDITIONS IN NORMAL CIRCUMSTANCES I'D HAVE SAID THAT THE ISSUE WOULD GO THROUGH EFFORTLESSLY BUT NOW IT'S SOMETHING THAT HAS TO BE PUSHED SAYS AN OFFICIAL AT KOTAK MAHINDRA FINANCE LTD ONE OF THE ISSUE'S LEAD MANAGERS TO ATTRACT INVESTORS BRUISED BY THE PLUNGING MARKET UNDERWRITERS ARE PINNING THEIR FAITH ON THE COMPANY'S SOUND FUNDAMENTALS AND PROFITABILITY THAT IS PROJECTED TO SURGE WE'RE HOPEFUL CONSIDERING GODREJ'S TREMENDOUS BRAND EQUITY AND STRONG PRESENCE IN THE CONSUMER MARKET SAYS UDAY KOTAK OF KOTAK MAHINDRA THE COMPANY REPORTED A PRETAX PROFIT OF ONLY 90 MILLION RUPEES ON REVENUE OF 516 BILLION RUPEES IN THE YEAR ENDED MARCH 1992 THIS COMPARES WITH PRETAX PROFIT OF 100 MILLION RUPEES ON REVENUE OF 424 BILLION RUPEES A YEAR EARLIER HIGH DEBTSERVICE PAYMENTS HAVE BEEN ERODING PRETAX PROFITS BUT A ONETIME CAPITAL INJECTION OF 400 MILLION RUPEES FROM THE P&G JOINT VENTURE WILL HELP EASE THE DEBT PROBLEMS AS WILL FUNDS FROM THE EQUITY ISSUE COMPANY OFFICIALS EXPECT TO REPORT GODREJ SOAPS' PROFIT REACHED 440 MILLION RUPEES IN THE YEAR ENDED MARCH 1993 REVENUE FOR FISCAL 1993 IS EXPECTED TO DROP TO 42 BILLION RUPEES BECAUSE GODREJ SOAPS IN 1992 SPUN OFF ITS AGRICULTURAL BUSINESS WITH ABOUT 125 BILLION RUPEES IN ANNUAL SALES TO A SUBSIDIARY GODREJ AGROVET LTD IN THE CURRENT FISCAL YEAR THE COMPANY FORECASTS A PROFIT OF 510 MILLION RUPEES ON REVENUE OF 458 BILLION RUPEES PERSHARE EARNINGS ARE PROJECTED TO GROW TO 1337 RUPEES IN THE YEAR ENDING MARCH 1996 FROM A FORECAST OF 772 RUPEES FOR THE CURRENT FISCAL YEAR HIGH INTEREST PAYMENTS HAVE PUT GODREJ SOAPS AT A DISADVANTAGE COMPARED WITH COMPETITORS SUCH AS HINDUSTAN LEVER LTD UNILEVER PLC'S INDIAN SUBSIDIARY GETTING ACCESS TO CHEAPER MONEY WILL ENABLE US TO FINANCE RAPID GROWTH FOR THE NEXT FIVE OR 10 YEARS SAYS GODREJ SOAPS' 50YEAROLD MANAGING DIRECTOR ARDESHIR GODREJ A COUSIN OF JAMSHYD GODREJ IN ANOTHER BENEFIT OF THE LISTING PUBLICLY HELD COMPANIES PAY LOWER TAXES THAN DO PRIVATELY OR CLOSELY HELD FIRMS IN INDIA'S MARKET FOR PREMIUM SOAPS GODREJ SOAPS' MOST SUCCESSFUL PRODUCT LINE THE COMPANY IS NECKANDNECK WITH HINDUSTAN LEVER EACH HAS A MARKET SHARE OF ABOUT 30 BUT HINDUSTAN LEVER DOMINATES THE MARKET FOR SOAPS AND TOILETRIES AS A WHOLE GODREJ SOAPS IS BANKING ON NEW TECHNOLOGIES MARKETING SAVVY AND POPULAR INTERNATIONAL BRANDS FROM PROCTER & GAMBLE GODREJ LTD THE JOINT VENTURE TO HELP IT BUILD MUSCLE IN THE MARKETPLACE COMPARED WITH SOME RECENT UNDERSUBSCRIBED ISSUES GODREJ SOAPS' ISSUE IS RELATIVELY SMALL THE COMPANY IS OFFERING 708 MILLION SHARES AT 140 RUPEES EACH THE OF FERING IS JUST ABOVE THE MINIMUM OF 20 OF TOTAL EQUITY THAT REGULATORS REQUIRE BE ISSUED TO QUALIFY FOR MARKET LISTING THE SAME REGULATIONS PROHIBIT FOREIGN INSTITUTIONAL INVESTORS FROM BIDDING FOR THE FIRST ISSUE BUT FOREIGNERS CAN BUY THE COMPANY'S SHARES ONCE GODREJ SOAPS IS LISTED AND CAN BID FOR ANY SUBSEQUENT PUBLIC OFFERINGS ASKED IF P&G WOULD BE INTERESTED IN BUYING A STAKE NOW THAT GODREJ SHARES WILL BECOME AVAILABLE P&G OFFICIALS IN THE US DECLINED TO COMMENT 9304300072 930430 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN AMONG THE WORLD'S AIRLINES ONLY THOSE IN EUROPE REPORTED THAT FIRSTQUARTER INCREASES IN PASSENGERS EXCEEDED GROWTH IN AVAILABILITY OF PLANE SEATS THE 206MEMBER INTERNATIONAL AIR TRANSPORT ASSOCIATION SAID EUROPEAN AIRLINES INCREASED THEIR CAPACITY 6 FROM THE 1992 FIRST QUARTER BUT CARRIED 8 MORE PASSENGERS FOR THE ENTIRE INDUSTRY TRAFFIC ROSE 7 AND CAPACITY EXPANDED 8 ON ROUTES SERVING THE FAR EAST LONG THE FASTESTGROWING REGION IN THE INDUSTRY CARRIERS' TRAFFIC GREW ONLY 4 WHILE CAPACITY WAS UP 8 NORTH AMERICAN AIRLINES REPORTED INCREASES OF 7 IN TRAFFIC AND 9 IN CAPACITY LATIN AMERICAN AIRLINES' TRAFFIC ROSE 8 AND CAPACITY GREW 10 THOUGH THEY WON A COMPETITIVE EDGE EUROPEAN CARRIERS SLASHED FARES AND BOOSTED SERVICES TO DO IT IN THE TRADITIONALLY SLOW FIRST QUARTER AND THEIR EARNINGS WILL BE HURT THIS CONCERN WAS ECHOED BY THE 23MEMBER ASSOCIATION OF EUROPEAN AIRLINES WHICH SAID MARCH PASSENGER TRAFFIC GREW 11 FROM A YEAR EARLIER BUT ONLY 55 OF THE PLANES' SEATS WERE FILLED METALWORKERS IN EASTERN GERMANY SCHEDULED A STRIKE TO BEGIN MONDAY TO PRESS FOR A 26 PAY INCREASE THAT WAS TO HAVE BEEN GRANTED APRIL 1 THE IG METALL UNION GERMANY'S BIGGEST LABOR GROUP WITH ABOUT THREE MILLION MEMBERS LAST MONTH REJECTED EMPLOYERS' 9 PAYBOOST OFFER EASTERN GERMANS WANT TO CLOSE THE GAP WITH HIGHERPAID WESTERN GERMAN WORKERS THE WALKOUT WHICH WOULD BE THE FIRST IN SIX DECADES IN THE ECONOMICALLY STRUGGLING EASTERN REGION WILL TARGET ABOUT 65 OF 455 FIRMS IN THE STEEL METAL ENGINEERING AND ELECTRONICS INDUSTRIES FRANCE WON EUROPEAN COMMUNITY PERMISSION TO IMPOSE TEMPORARY QUOTAS ON BANANA IMPORTS AFTER A SURGE OF SHIPMENTS THROUGH NEIGHBORING COUNTRIES TRIGGERED A PRICE COLLAPSE IN FRANCE THE IMPORTS WHICH PUSHED FRENCH PRICES DOWN BETWEEN 35 AND 40 CAME MOSTLY FROM THE DOMINICAN REPUBLIC THROUGH BELGIUM AND ITALY COSTA RICA PANAMA AND ECUADOR SEND BANANAS DIRECTLY TO FRANCE FRANCE WILL LIMIT BANANA IMPORTS UNTIL JULY WHEN STIFF NEW ECWIDE QUOTAS TAKE EFFECT AVERAGE WAGES IN JAPAN LAST YEAR ROSE 33 SLOWING FROM 46 GROWTH IN 1991 AS COMPANIES CUT COSTS AMID THE COUNTRY'S ECONOMIC DOWNTURN A LABOR MINISTRY SURVEY OF 45000 COMPANIES FOUND THAT WORKERS WITH A MEDIAN AGE OF 386 YEARS AND JOB TENURE OF 109 YEARS WERE PAID 275200 YEN 2452 A MONTH EXCLUDING BENEFITS AND ALLOWANCES WAGES FOR MEN AT 397 YEARS OLD AND WITH 125 YEARS OF EMPLOYMENT ROSE 32 TO 313500 YEN AND FOR WOMEN AT 36 YEARS OLD WITH A 74YEAR JOB TENURE ROSE 46 TO 192800 YEN SOUTH KOREAN INDICATORS SUGGEST THE ECONOMY HIT BOTTOM IN JANUARY AND BEGUN A TURNAROUND LAST MONTH INDUSTRIAL OUTPUT ROSE 16 FOLLOWING A 15 INCREASE IN FEBRUARY AND A 04 DROP IN JANUARY THE LEADING INDEX FOR THE THREE MONTHS AHEAD ROSE 08 IN MARCH AFTER A 11 INCREASE IN FEBRUARY AND A 05 DROP IN JANUARY BUT ECONOMISTS WORRY THAT THE RECOVERY PACE MAY BE CRIPPLED BY THE GOVERNMENT'S ANTICORRUPTION DRIVE WHICH HAS LED TO CORPORATE DISMISSALS AND ARRESTS AND CAPITAL SPENDING SEEMS TO BE ON HOLD AS COMPANIES AREN'T SURE IF THE GOVERNMENT'S ECONOMYBOOSTING MEASURES WILL SUCCEED SWEDISH HOUSEHOLDS LOWERED THEIR EXPECTATIONS FOR THE ECONOMY'S PERFORMANCE IN A GOVERNMENT SURVEY LAST MONTH 47 WERE BRACED FOR FURTHER DETERIORATION IN THE NEXT 12 MONTHS ONLY 14 EXPECTED AN IMPROVEMENT IN FEBRUARY 39 BELIEVED THE ECONOMY WOULD WORSEN AND 18 PREDICTED BETTER TIMES THOSE EXPECTING JOBLESSNESS TO GROW IN THE COMING YEAR ROSE TO 71 OF HOUSEHOLDS FROM 64 THE INTERNATIONAL MONETARY FUND SAID RUSSIA'S CENTRAL BANK MUST COMMIT TO SLOW CREDIT GROWTH BEFORE IT MAY BORROW FROM A NEW FUND THAT HAS MORE LENIENT CONDITIONS THAN FOR CONVENTIONAL IMF LENDING THE OVERRIDING TASK OF RUSSIAN AUTHORITIES IS TO CONTAIN INFLATION WHICH RAN BETWEEN 21 AND 25 A MONTH IN THE FIRST QUARTER AN IMF OFFICIAL SAID THE OFFICIAL ACKNOWLEDGED THAT RUSSIAN CENTRAL BANKERS ARE UNDER ENORMOUS PRESSURE TO PROVIDE CREDIT TO UNCOMPETITIVE ENTERPRISES AND TO FINANCE GOVERNMENT DEFICITS IF THERE IS ANY BLAME IT IS ON THE CENTRAL BANK OF RUSSIA FOR NOT RESISTING ENOUGH THE OFFICIAL SAID WE HAVE ADVISED THEM THAT INDUSTRY POLICY IS NOT THE BUSINESS OF A CENTRAL BANK RUSSIA'S RUNAWAY DEFICITS AND THE RUBLE'S FREEFALL HAVE PROMPTED THE IMF TO RECONSIDER ITS OBJECTIONS TO OTHER FORMER SOVIET REPUBLICS' PLANS TO CREATE THEIR OWN CURRENCIES ANOTHER IMF OFFICIAL SAID PROSPECTS FOR STABILIZING THE RUBLE AREN'T GOOD THE RUSSIAN CURRENCY YESTERDAY FELL TO A RECORD LOW OF 823 TO THE DOLLAR A 24HOUR STRIKE BY FRENCH PAPER PRINT AND COMMUNICATIONS WORKERS IDLED PRESSES IN PARIS HALTING PUBLICATION OF ALMOST ALL NATIONWIDE NEWSPAPERS UNION WORKERS WERE PROTESTING JOBREDUCTION ACTIONS QUEEN ELIZABETH II WILL OPEN BUCKINGHAM PALACE TO VISITORS AT 1250 A TICKET TO HELP PAY FOR REPAIRS OF WINDSOR CASTLE DAMAGED BY FIRE LAST NOVEMBER BRITONS BALKED AT THE RESTORATION BILL OF BETWEEN 46 MILLION AND 62 MILLION AND DONATIONS HAVE TOTALED ONLY 39000 9304300071 930430 UAL REPORTS NARROWER LOSS FOR 1ST QUARTER BUT DEFICIT BEFORE CHARGES WORSENED AND AIRLINE PLANS TO TRIM CAPACITY BY BRETT PULLEY STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO UAL CORP POSTED A NARROWER FIRSTQUARTER NET LOSS BUT A WIDER DEFICIT BEFORE CHARGES AND OUTLINED FURTHER PLANS TO SHRINK CAPACITY THE COMPANY REPORTED A LOSS BEFORE CHARGES OF 138 MILLION A 28 INCREASE FROM THE YEAREARLIER LOSS BEFORE CHARGES OF 108 MILLION IN THE LATEST QUARTER AN EXTRAORDINARY CHARGE OF 19 MILLION FROM THE EARLY REPAYMENT OF DEBT PUSHED THE NET LOSS TO 157 MILLION OR 669 A SHARE IN THE YEARBEFORE PERIOD A 540 MILLION CHARGE FROM ACCOUNTING CHANGES TRIGGERED A NET LOSS OF 648 MILLION OR 2710 A SHARE REVENUE ROSE 12 TO 333 BILLION FROM 297 BILLION STEPHEN WOLF CHAIRMAN AND CHIEF EXECUTIVE OFFICER TOLD THE ANNUAL MEETING THAT UAL'S UNITED AIRLINES WILL FURTHER PARE CAPACITY OVER THE NEXT SEVERAL YEARS HE SAID THAT WAS NECESSARY BECAUSE CONSUMERS INCREASINGLY ARE CHOOSING THE LOWESTPRICE CARRIERS TO FLY PRICE IS BECOMING THE SOLE CRITERION FOR CARRIER SELECTION HE SAID HE BLAMED UNITED'S LABOR UNIONS FOR BEING UNWILLING TO GRANT WAGEANDBENEFIT CONCESSIONS TO HELP REDUCE THE AIRLINE'S COSTS CONSEQUENTLY WE ARE PURSUING ALTERNATIVE STRUCTURAL ACTIONS TO REDUCE OUR COSTS HE SAID MR WOLF SAID UNITED HAS REACHED AN AGREEMENT WITH AIRBUS INDUSTRIE ITS AIRCRAFT SUPPLIER TO SLOW ITS DELIVERY OF A320 AIRCRAFT MOVING SOME 1995 AND 1996 DELIVERIES TO LATER YEARS HE SAID UNITED ALSO WILL RETIRE OTHER AIRCRAFT ON AN ACCELERATED BASIS AS THE 50 A320S ON ORDER ARE DELIVERED PREVIOUSLY THE AIRLINE SAID IT WOULD REMOVE 44 ADDITIONAL AIRCRAFT FROM ITS FLEET THIS YEAR AS A RESULT UNITED'S CAPACITY NEXT YEAR WILL DECLINE AT LEAST ONEHALF OF A PERCENT IN DOMESTIC MARKETS WHILE WE WILL GROW ON A SYSTEMWIDE BASIS AT NO MORE THAN 25 MR WOLF SAID HE AGAIN INSISTED THAT WITHOUT LABOR CONCESSIONS UNITED WILL BE FORCED TO SELL ITS 17 US FLIGHT KITCHENS A MOVE THAT WOULD ELIMINATE 5600 JOBS ALSO THE AIRLINE HAS SAID IT WILL LEASE AIRCRAFT INSTEAD OF OPERATING THEM ON UNPROFITABLE ROUTES WHICH COULD LEAD TO MORE LAYOFFS EMPLOYEES AND SHAREHOLDERS CRITICIZED MR WOLF ON THE KITCHEN ISSUE TO A ROUND OF APPLAUSE ONE FLIGHTKITCHEN EMPLOYEE ACCUSED MR WOLF OF TAKING A CONFRONTATIONAL ATTITUDE TOWARDS YOUR EMPLOYEES MR WOLF DEFENDED THE ACTION SAYING THIS IS LESS A MANAGEMENT DECISION THAN A MARKETPLACE DECISION UAL'S 400 MILLION COSTREDUCTION PROGRAM INITIATED EARLIER THIS YEAR RESULTED IN IMPROVED YEAROVERYEAR UNIT COSTS COMPARISONS THE COMPANY SAID THE AIRLINE'S FIRSTQUARTER UNIT COSTS PER AVAILABLE SEAT MILE FELL 26 TO 962 CENTS COMPARED WITH LAST YEAR'S QUARTER DESPITE A 63 INCREASE IN THE AVERAGE PRICE OF FUEL UNITED'S REVENUE PER AVAILABLE SEAT MILE DECLINED 05 TO 931 CENTS UAL SAID THE DECLINE WAS DUE LARGELY TO THE IMPACT OF THE WEAK ECONOMY IN JAPAN WHERE ORIGINATING TRAFFIC IS ESPECIALLY ANEMIC IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY UAL'S SHARES WERE OFF 4875 CLOSING AT 140625 KEVIN MURPHY AN INDUSTRY ANALYST AT MORGAN STANLEY & CO SAID UAL'S COSTS FOR THE QUARTER WERE UNDER EXCEPTIONAL CONTROL BUT HE ADDED THAT WITH THE BIG LOSS THE COMPANY IS STILL IN A POSITION TO MAKE A CASE FOR LOWER COSTS 9304300070 930430 MARKETING BRIEF HEARST CORP PUBLICATION OF COUNTRYSIDE TO END WITH SPRING ISSUE HEARST CORP WILL HALT PUBLICATION OF COUNTRYSIDE THE FOURYEAROLD NATURE AND LIFESTYLE MAGAZINE A HEARST SPOKESWOMAN SAID THE SPRING ISSUE OF COUNTRYSIDE WOULD BE THE LAST ISSUE FOR 1993 AND THAT FUTURE FREQUENCY OF THE TITLE IS FLEXIBLE NO FUTURE PUBLICATION DATE HAS BEEN SET BUT THE SPOKESWOMAN SAID THE MAGAZINE WOULD NOW BECOME PART OF HEARST'S COUNTRY LIVING SPECIAL INTEREST PUBLICATIONS GROUP CAROL COPPER GAREY EDITOR OF COUNTRYSIDE WILL HEAD THE COUNTRY LIVING PUBLICATIONS GROUP HEARST THE CLOSELY HELD MEDIA GIANT GAVE NO OFFICIAL EXPLANATION FOR HALTING PUBLICATION AND IT'S UNCLEAR WHETHER THE PUBLICATION WHICH CATERED TO UPSCALE ADVERTISERS WAS HAVING TROUBLE DRAWING AD PAGES 9304300069 930430 BUSINESS BRIEF HILLSDOWN HOLDINGS PLC UK FOOD COMPANY SAYS FINANCE DIRECTOR IS LEAVING HILLSDOWN HOLDINGS PLC ANNOUNCED THAT SIMON MOFFAT WAS BEING REPLACED AS FINANCE DIRECTOR AND SAID 1993 BUSINESS HAS BEGUN AS EXPECTED ADDRESSING THE UK FOOD COMPANY'S ANNUAL GENERAL MEETING THE NEWLY INSTALLED CHAIRMAN JOHN NOTT SAID MR MOFFAT'S APPOINTMENT LAST YEAR AS FINANCE DIRECTOR HASN'T WORKED OUT AS ENVISAGED BY EITHER SIDE MR NOTT SAID MR MOFFAT WILL LEAVE HILLSDOWN AND BE SUCCEEDED BY RAY MACKIE WHO JOINED THE BOARD OF HILLSDOWN IN JANUARY AFTER HAVING SERVED AS CORPORATE FINANCE PARTNER FOR ACCOUNTING FIRM KPMG PEAT MARWICK MR NOTT SAID THE CURRENT YEAR HAS STARTED REASONABLY WELL FOR THE COMPANY TRADING IS UP TO OUR EXPECTATIONS AND IN LINE WITH OUR BUDGETS IT IS MUCH TOO EARLY TO MAKE ANY FIRM PREDICTIONS FOR THE YEAR BUT I AM CONFIDENT IN THE PROSPECTS OF THE GROUP AS A WHOLE 9304300068 930430 BUSINESS BRIEF HOSPITALITY FRANCHISE SYSTEMS INC FIRM ACHIEVES TURNAROUND AS SALES OF FRANCHISES SOAR HOSPITALITY FRANCHISE SYSTEMS INC REPORTED A FIRSTQUARTER TURNAROUND AS SALES OF ITS HOTEL FRANCHISES ALMOST TRIPLED FOR THE QUARTER THE PARSIPPANY NJ HOTEL FRANCHISER REPORTED NET INCOME OF 44 MILLION OR 18 CENTS A SHARE COMPARED WITH A NET LOSS OF 126000 OR THREE CENTS A SHARE THE YEAR EARLIER REVENUE INCREASED 24 TO 479 MILLION THE 1992 FIRST QUARTER INCLUDED 16 MILLION OR 10 CENTS A SHARE IN COSTS RELATED TO THE EARLY EXTINGUISHMENT OF DEBT THE COMPANY WHICH FRANCHISES HOTELS UNDER THE DAYS INN HOWARD JOHNSON AND RAMADA NAMES SOLD 122 FRANCHISES REPRESENTING 10827 ROOMS IN THIS YEAR'S FIRST QUARTER COMPARED WITH 41 FRANCHISES AND 3411 ROOMS THE YEAR BEFORE IN THE YEARAGO QUARTER THE COMPANY HAD RIGHTS TO THE DAYS INN SYSTEM FOR ONLY THE FINAL TWO MONTHS OF THE PERIOD 9304300067 930430 MARKETING & MEDIA ADVERTISING TV HAS STARTED TO JUST SAY NO' TO SERVICE ADS AGAINST DRUG USE BY KEVIN GOLDMAN ONCE HIGH ON THE LIST OF THE NATION'S PRIORITIES THE WAR ON DRUGS HAS SLIPPED A FEW NOTCHES ON THE NATIONAL AGENDA NOWHERE IS THAT MORE EVIDENT THAN ON TELEVISION WHERE NEWS REPORTS ON THE DANGERS OF DRUGS HAVE VIRTUALLY DISAPPEARED AND PERHAPS MORE IMPORTANTLY PUBLIC SERVICE ANNOUNCEMENTS LECTURING AGAINST DRUG USE INCLUDING MARIJUANA HAVE GONE UP IN SMOKE THE PARTNERSHIP FOR A DRUGFREE AMERICA REPORTS A 13 DECLINE IN THE USE BY MEDIA OF ITS ADS WARNING AGAINST COCAINE CRACK AND POT THE UBIQUITOUS EGGFRYING AD THIS IS YOUR BRAIN ON DRUGS ISN'T SEEN SO MUCH ANYMORE THE DROP COMES AS A NEW STUDY OF 18000 EIGHTH GRADERS BY THE UNIVERSITY OF MICHIGAN SHOWS THAT AFTER YEARS OF DECLINING DRUG USE AMONG HIGH SCHOOL STUDENTS MARIJUANA USE ROSE 15 FROM THE PREVIOUS YEAR THE ADVERTISING ATTENTION HAS DEFINITELY DIPPED SAYS MIKE TOWNSEND THE PARTNERSHIP'S EXECUTIVE VICE PRESIDENT AND WE ARE TAKING THIS STUDY AS A WAKEUP CALL WE CAN'T LET PREVENTION EDUCATION GO DOWN SEVERAL FACTORS ARE WORKING AGAINST THE SEVENYEAROLD PARTNERSHIP THE AD COMMUNITY AND TV NETWORKS HAVE GLOMMED ONTO A NEW CAUSE THE FIGHT AGAINST AIDS THE PARTNERSHIP ITSELF HAS COME UNDER ATTACK BY A PROPOT PUBLICINTEREST GROUP FOR EXAGGERATING MARIJUANA'S HARMS AND IN THE SCHEME OF THINGS MARIJUANA USE ISN'T AMONG THE MOST DREADED ACTIVITIES THE COUNTRY EVEN HAS ITS FIRST PRESIDENT WHO ACKNOWLEDGED IN A TV INTERVIEW THAT HE ONCE TOKED ON A JOINT EVEN IF HE DIDN'T INHALE WHEN THE PARTNERSHIP WAS FORMED AMID THE REAGAN ERA IN 1986 IT ASKED THE NATION'S PRINT AND BROADCAST MEDIA TO DONATE A DAUNTING 500 MILLION OF AD SPACE AND AIRTIME EACH YEAR ALTHOUGH THE EFFORT WAS LAUNCHED WITH MUCH HOOPLA IT NEVER CAME NEAR THAT LOFTY GOAL INDEED IN 1987 ONLY 115 MILLION OF MEDIA TIME WAS GIVEN TO THE ANTIDRUG MESSAGES THE PEAK WAS 384 MILLION REACHED IN 1990 SHORTLY AFTER THENPRESIDENT BUSH DELIVERED A SPEECH DECLARING YET ANOTHER WAR ON DRUGS AND CITING DRUG ABUSE AS THE NATION'S NO 1 SOCIAL ISSUE SINCE THEN THE VALUE OF PUBLICSERVICE SPOTS HAS SLOWLY ERODED DROPPING 3 TO 371 MILLION IN 1991 AND GOING DOWN 13 TO 323 MILLION LAST YEAR I CERTAINLY DON'T WANT TO CRITICIZE THE AIDS EFFORT BUT IT BECAME MORE DIFFICULT TO GET OUR SPOTS ON THE AIR WITH AS MUCH FREQUENCY AS WE WERE USED TO ONCE MAGIC JOHNSON ANNOUNCED HE WAS HIVPOSITIVE SAYS MR TOWNSEND WHOSE JOB IS TO SOLICIT AIRTIME AND AD SPACE FROM MEDIA COMPANIES INDEED SOME MEDIA COMPANIES ADMIT PRIVATELY THAT PUBLIC SERVICE ANNOUNCEMENT PRIORITIES SHIFT FROM YEAR TO YEAR NETWORKS AND NEWSPAPERS ARE TRYING TO SATISFY A VARIETY OF CAUSES SUCH AS AIDS AND THE FIGHT AGAINST DRUNK DRIVING THE NETWORKS SAY THE SERVICE ANNOUNCEMENT ALLOTMENT HASN'T SHRUNK BUT THE NUMBER OF CAUSES HAS INCREASED ONE BROADCASTING EXECUTIVE SAYS IT'S NAIVE TO MAKE A DIRECT CORRELATION BETWEEN THE NUMBER OF SPOTS AND THE RISE IN MARIJUANA USE ROBERT SCHULTZ SENIOR VICE PRESIDENT OF THE AD COUNCIL THE LARGEST PROVIDER OF PUBLIC SERVICE SPOTS SAYS IT'S GETTING INCREASINGLY DIFFICULT TO GET THE COMMERCIALS ON THE AIR NO MATTER THE ISSUE THE RESULT IS LESS TIME AND SPACE FOR JUST SAY NO ADS TARGETING TEENS SUCH AS ONE THAT SHOWS TWO GIRLS IN A HIGH SCHOOL BATHROOM SMOKING A JOINT THEY ARE WONDERING WHY NO ONE HAS ASKED THEM TO THE PROM I DON'T GET IT ONE SAYS THE SCREEN FADES TO BLACK THAT IS PART OF THE SOCALLED SOCIAL DISAPPROVAL MESSAGE WHEN YOU'RE TRYING TO REACH TEENS IT'S HARD TO CONVINCE THEM THAT MARIJUANA IS GOING TO KILL THEM SO YOU HAVE GET ACROSS THAT IT ISN'T COOL TO SMOKE IT MR TOWNSEND EXPLAINS THE PROBLEMS FACING THE PARTNERSHIP SUIT THE NATIONAL ORGANIZATION FOR THE REFORM OF MARIJUANA LAWS JUST FINE SOME SPOTS ARE MISLEADING SAYS RICHARD COWLAND NORML'S NATIONAL DIRECTOR FOR INSTANCE ONE COMMERCIAL SHOWS A HEALTHY BRAIN EMITTING REDS BLUES AND YELLOWS ON A COMPUTER SCAN AN UNHEALTHY BRAIN DAMAGED BY COCAINE USE SHOWS DARK AREAS THAT APPEAR TO BE HOLES OF INACTIVITY THE SLOGAN MAYBE YOU HAVE TO HAVE HOLES IN YOUR HEADS TO DO DRUGS ALLEN ST PIERRE NORML'S ASSISTANT NATIONAL DIRECTOR SAYS THE VOICEOVER IN THE AD DOESN'T LIMIT THE CLAIM TO JUST COCAINE AND HE ADDS THAT COFFEE CHOCOLATE AND TOBACCO CAUSE THE SAME SCAN RESULTS A SPOKESMAN FOR THE PARTNERSHIP DISMISSES THAT CLAIM AS ABSURD AND SAYS IT HAS MEDICAL DOCUMENTS TO SUPPORT ITS AD THE PARTNERSHIP HOWEVER PULLED ANOTHER BRAINSCAN AD FOR REASONS OF ACCURACY IN 1987 IT SHOWED TWO SCANS ONE NORMAL AND THE OTHER AFTER A TEEN TOKED ON A JOINT MR COWLAND SAYS THE AD WAS DEEPSIXED BECAUSE THE SCANS WERE SIMULATED THE PARTNERSHIP DISPUTES THAT AS WELL BUT YANKED THE SPOT BECAUSE OF A GRAY AREA IN SCIENCE AND ALL THE DEBATE THAT ERUPTED IT SAYS ANOTHER SPOT THAT IRRITATES PROPOT PEOPLE FOCUSES ON AN AMTRAK WRECK OUTSIDE BALTIMORE SEVERAL YEARS AGO THAT KILLED MORE THAN A DOZEN PASSENGERS ONE OF THE ENGINEERS WAS HIGH ON MARIJUANA THE SPOT IS A STATEMENT FROM AN ACTOR JESSIE CORTI WHOSE WIFE WAS KILLED MR COWLAND OF THE PROPOT GROUP SAYS THAT NO ONE ADVOCATES DRIVERS ENGINEERS OR PILOTS USE MARIJUANA WHEN PERFORMING ONTHEJOB FUNCTIONS THE SPOTS SOME OF WHICH HAVE BECOME THE BUTT OF JOKES ON TSHIRTS AND ON LATENIGHT TV MONOLOGUES DO WORK THE PARTNERSHIP INSISTS WE HAVE EVIDENCE THAT SHOWS WHERE THE CAMPAIGN RUNS HEAVIEST THE ANTIDRUG ATTITUDE INCREASES WPP GROUP'S OGILVY & MATHER WILL BECOME THE ADVERTISING AGENCY FOR SMITH BARNEY SHEARSON INC WHEN BROKERAGE HOUSES SMITH BARNEY HARRIS UPHAM & CO AND SHEARSON LEHMAN BROTHERS COMPLETE THEIR MERGER IN EARLY JULY OGILVY SMITH BARNEY'S AGENCY FOR 14 YEARS BEAT NW AYER WHICH HAD THE SHEARSON ACCOUNT FOR LESS THAN A YEAR IN A REVIEW THAT INCLUDED ONLY THE TWO FIRMS THE ACCOUNT IS ESTIMATED TO BE WORTH AT LEAST 6 MILLION BY INDUSTRY EXECUTIVES THE WORLD IS VERY CURIOUS ABOUT HOW THESE TWO GIANTS ARE GOING TO COME TOGETHER SAYS SHELLY LAZARUS OGILVY'S PRESIDENT OGILVY CREATED SMITH BARNEY'S LONGRUNNING THEY MAKE MONEY THE OLDFASHIONED WAY THEY EARN IT CAMPAIGN OMNICOM GROUP INC REPORTED FIRSTQUARTER EARNINGS OF 147 MILLION OR 52 CENTS A SHARE UP 15 FROM 127 MILLION OR 45 CENTS A SHARE A YEAR EARLIER THE 1992 FIGURE INCLUDED A GAIN OF 38 MILLION OR 13 CENTS A SHARE DUE TO CHANGES IN ACCOUNTING METHODS FOR POSTRETIREMENT BENEFITS AND INCOME TAX REPORTING WORLDWIDE COMMISSION AND FEE INCOME INCREASED 4 TO 3212 MILLION FROM 3089 MILLION OMNICOM'S ACQUISITION OF TBWA ADVERTISING WILL BE COMPLETED BY THE END OF MAY AS PLANNED THE COMPANY SAYS TBWA OPERATIONS ARE NOT INCLUDED IN THE FIRSTQUARTER RESULTS OMNICOM'S OTHER MAJOR INTERNATIONAL AGENCIES ARE BBDO AND DDB NEEDHAM IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY OMNICOM SHARES FELL 25 CENTS TO 4150 I AM NOT PAID TO BE A ROLE MODEL DECLARES CHARLES BARKLEY THE BASKETBALL STAR OF THE PHOENIX SUNS I AM PAID TO WREAK HAVOC ON A BASKETBALL COURT THE STERN LECTURE IS DELIVERED DURING A NEW SPOT FOR NIKE INC FROM WIEDEN & KENNEDY THE 30SECOND SPOT IS DESIGNED TO ADDRESS THE ISSUE OF ATHLETES AS ROLE MODELS THE COMMERCIAL CONCLUDES WITH JUST BECAUSE I CAN DUNK A BASKETBALL DOESN'T MEAN I SHOULD RAISE YOUR KIDS 9304300066 930430 WHO'S NEWS JWP INC SHUFFLE GIVES KOSNIK REINS FOR RESTRUCTURING BY LOURDES LEE VALERIANO STAFF REPORTER OF THE WALL STREET JOURNAL RYE BROOK NY JWP INC CHAIRMAN ANDREW DWYER RELINQUISHED HIS POSTS OF PRESIDENT AND CHIEF EXECUTIVE OFFICER TO EDWARD F KOSNIK IN PART APPARENTLY TO HELP THE RESTRUCTURING OF THE COMPANY'S 485 MILLION DEBT THE 48YEAROLD MR KOSNIK CHIEF FINANCIAL OFFICER FOR THE TECHNICAL SERVICES COMPANY FOR BARELY FIVE MONTHS PREVIOUSLY WAS PRESIDENT AND CHIEF EXECUTIVE OF ELECTRONICS COMPONENTS MAKER SPRAGUE TECHNOLOGIES INC APART FROM DEBT RESTRUCTURING HE WILL MANAGE THE SALE OF ASSETS AND REFOCUS JWP ON ITS CORE MECHANICAL AND ELECTRICALSERVICES BUSINESS LINELL MCCURRY AN ANALYST WITH RBC RESEARCH IN PHILADELPHIA SAID THE IMMEDIATE IMPACT OF MR KOSNIK'S APPOINTMENT WOULD BE TO REASSURE THE GROUP OF LENDERS THAT THEY HAVE THE RIGHT PERSON FOCUSING ON THE FINANCIAL ASPECTS OF THE COMPANY'S RESTRUCTURING SHE ADDED THAT THE CHANGE IN THE EXECUTIVE SUITE WHICH INCLUDES DIVIDING MR KOSNIK'S DUTIES AS CHIEF FINANCIAL OFFICER BETWEEN TWO OTHER EXECUTIVES BROADENS THE RANKS OF UPPER MANAGEMENT MR DWYER 44 WILL REMAIN CHAIRMAN MR KOSNIK'S IMMEDIATE TASK WOULD BE TO EXTEND A STANDSTILL AGREEMENT WITH LENDERS UNDER WHICH THE COMPANY PAYS A REDUCED INTEREST RATE AND DEFERS ALL PAYMENT OF PRINCIPAL THE AGREEMENT EXPIRES TODAY THE COMPANY HAS BEEN OUT OF COMPLIANCE WITH CERTAIN LOAN COVENANTS SINCE LAST FALL WHEN IT ANNOUNCED A THIRDQUARTER RESTRUCTURING CHARGE OF 135 MILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY JWP'S STOCK FELL 50 CENTS TO 2625 9304300065 930430 BUSINESS BRIEF COMINCO LTD CONVERSION IS CONSIDERED FOR FAULTY LEAD SMELTER COMINCO LTD SAID IT HAS ABANDONED HOPES OF RESTARTING ITS NEW LEAD SMELTER WHICH HAS BEEN SHUTTERED FOR THREE YEARS DUE TO PRODUCTION PROBLEMS NORMAN KEEVIL CHAIRMAN SAID THE COMPANY IS CONSIDERING CONVERTING THE PLANT TO A MORE PROMISING SMELTING PROCESS CONVERTING WOULD COST AN ESTIMATED 100 MILLION CANADIAN DOLLARS US787 MILLION THE COMPANY SAID IT WILL SEEK FINANCIAL COMPENSATION FROM THE MANUFACTURER OF THE SMELTER LURGI GMBH OF GERMANY SEPARATELY COMINCO A LEAD AND ZINC PRODUCER BASED IN VANCOUVER BRITISH COLUMBIA SAID IT WON'T MAKE A SEMIANNUAL DIVIDEND PAYMENT IN JUNE DUE TO LOW METAL PRICES AND THE FIRSTQUARTER LOSS COMINCO WHICH HAS NO SET DIVIDEND POLICY LAST PAID A DIVIDEND OF 15 CANADIAN CENTS A SHARE 118 US CENTS IN DECEMBER THE COMPANY HAD A LOSS OF C368 MILLION ON SALES OF C2915 MILLION IN THE FIRST QUARTER 9304300064 930430 BUSINESS BRIEF ALUMINUM CO OF AMERICA AT LEAST 400 JOBS TO BE CUT AT HEADQUARTERS AND CENTER ALUMINUM CO OF AMERICA SAID IT WILL CUT AT LEAST 400 JOBS OR LESS THAN 1 OF ITS TOTAL WORK FORCE AT ITS HEADQUARTERS AND TECHNICAL CENTER THE PITTSBURGHBASED ALUMINUM MAKER SAID GAINS IN EFFICIENCY ARE MAKING THE JOBS UNNECESSARY ALCOA WHICH COULD LAY OFF MORE THAN 400 EMPLOYEES IS OFFERING ITS 2200 EMPLOYEES AT BOTH LOCATIONS WHAT IT CALLS RESIGNATION INCENTIVES THESE INCLUDE ONE WEEK'S PAY FOR EACH YEAR OF SERVICE WITH A MINIMUM OF EIGHT WEEKS' COMPENSATION A SPOKESMAN SAID ALCOA ESTIMATES IT WILL HAVE TO TAKE A PRETAX CHARGE OF 20 MILLION TO 30 MILLION IN THE SECOND QUARTER TO COVER THE CUTS BUT THE SPECIFIC SIZE OF THE CHARGE WILL DEPEND ON HOW MANY PEOPLE ACCEPT THE COMPANY'S OFFER BEGINNING THIS YEAR THE JOB REDUCTIONS AND GAINS IN EFFICIENCY AT THE HEADQUARTERS AND TECHNICAL CENTER WILL CUT 50 MILLION IN ANNUAL EXPENSES THE COMPANY SAID ALCOA'S SELLING GENERAL ADMINISTRATIVE AND OTHER EXPENSES WERE 5868 MILLION LAST YEAR LAST YEAR ALCOA HIT BY LOW ALUMINUM PRICES CUT 2100 JOBS COMPANYWIDE 9304300063 930430 BUSINESS BRIEF JOHN LABATT LTD HOLDERS APPROVE SPINOFF OF AULT FOODS DIVISION JOHN LABATT LTD SHAREHOLDERS APPROVED THE PROPOSED SPINOFF OF THE COMPANY'S AULT FOODS LTD DAIRY DIVISION IN CANADA EFFECTIVELY GIVING HOLDERS A 15 INCREASE IN DIVIDENDS UNDER THE PROPOSED TRANSACTION LABATT HOLDERS WOULD RECEIVE ONE SHARE IN AULT FOODS FOR EVERY FIVE LABATT SHARES CURRENTLY HELD THE SPINOFF WHICH STILL REQUIRES COURT APPROVAL IS EXPECTED TO BE COMPLETED IN JUNE LABATT IS BASED IN LONDON ONTARIO GEORGE TAYLOR LABATT'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID MANAGEMENT WILL RECOMMEND THAT LABATT'S BOARD MAINTAIN THE COMPANY'S ANNUAL DIVIDEND AT ITS CURRENT LEVEL OF 82 CANADIAN CENTS 645 US CENTS A SHARE DESPITE THE SPINOFF OF THE DAIRY UNIT AULT FOODS WHICH HAS ABOUT 2900 EMPLOYEES HAD OPERATING EARNINGS OF C67 MILLION ON SALES OF C119 BILLION FOR THE YEAR ENDED APRIL 30 1992 THE SPINOFF OF THE UNIT IS PART OF LABATT'S STRATEGY TO FOCUS ON ITS CORE BREWING AND ENTERTAINMENT BUSINESSES 9304300062 930430 MARKETING PEPSI'S FUTURE COULD BE LESS CRYSTAL CLEAR BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL THE PROSPECTS FOR CRYSTAL PEPSI PEPSICO INC'S CLEAR COLA ARE GETTING CLOUDY INTRODUCED NATIONALLY WITH GREAT FANFARE IN DECEMBER CRYSTAL PEPSI APPARENTLY HAS DISAPPOINTED MANY PEOPLE WHO EXPECTED IT TO TASTE JUST LIKE PEPSI MINUS THE DARK COLOR CRYSTAL PEPSI ACTUALLY HAS A DISTINCT LIGHTER COLA TASTE OF THE PEOPLE WHO DON'T LIKE IT THAT'S THE BIGGEST REASON SAYS CARL BEHNKE PRESIDENT OF SEATTLEBASED ALPAC CORP ONE OF PEPSI'S BIGGEST BOTTLERS AFTER A STRONG START CRYSTAL PEPSI'S MARKET SHARE HAS PLUNGED IN RECENT WEEKS IT FELL 25 IN MARCH TO 18 OF SUPERMARKET SOFTDRINK SALES FROM 24 IN FEBRUARY ACCORDING TO INFORMATION RESOURCES INC A MARKETRESEARCH FIRM IN CHICAGO NOW WITH THE ALLIMPORTANT SUMMER SELLING SEASON APPROACHING PEPSI MARKETERS ARE STUDYING HOW TO LEAVE CONSUMERS WITH A MORE ACCURATE IMPRESSION OF CRYSTAL PEPSI'S TASTE THE COMPANY'S ADVERTISING AGENCY OMNICOM GROUP'S BBDO CHANGED THE PRODUCT'S ADVERTISING THIS MONTH FEATURING THE ROCK GROUP VAN HALEN'S SONG RIGHT NOW TO EMPHASIZE THAT CRYSTAL PEPSI HAS A DIFFERENT COLA TASTE THE COMPANY REMAINS CONVINCED OF THE STRATEGY BEHIND CRYSTAL PEPSI PEOPLE FAMILIAR WITH THE PLANS SAY BUT IS REVIEWING WHETHER ITS TACTICS ARE OFF TRACK CRYSTAL PEPSI IS ONE OF THE HIGHESTPROFILE ENTRIES IN A RUSH OF TRANSPARENT PRODUCTS OVER THE PAST YEAR INCLUDING CLEAR PALMOLIVE DISHWASHING LIQUID AND BAN DEODORANT BRIAN SWETTE PEPSICOLA'S SENIOR VICE PRESIDENT IN CHARGE OF NEW BEVERAGES AND THE CRYSTAL PEPSI PROJECT CONCEDES THERE IS WORK TO BE DONE IT IS A UNIQUE TASTE AND THERE IS AN EXPECTATION TO OVERCOME HE SAYS THAT IS A CHALLENGE FOR US IN THE FUTURE HE ADDS TASTE SAMPLING AND ADVERTISING WILL REINFORCE THAT CRYSTAL PEPSI HAS A DISTINCT TASTE EVEN SO MR SWETTE SAYS WE'RE ON TRACK AT ABOUT A 2 SHARE AS WE SAID WE WOULD BE MR BEHNKE THE PEPSI BOTTLER SAYS HE HAS BEEN HAPPY WITH CRYSTAL PEPSI'S MARKET SHARE OF ABOUT 3 IN HIS WEST COAST MARKETS THOUGH HE EXPECTS IT TO END UP IN THE 2 RANGE NEW PRODUCTS TYPICALLY START HOT AND THEN SETTLE INTO A LOWER SALES RANGE BEVERAGE DIGEST A TRADE PUBLICATION REPORTS THAT IN THE ORIGINAL TEST MARKETS INCLUDING DENVER AND DALLAS WHERE CRYSTAL PEPSI BEGAN SELLING LAST APRIL THE BRAND'S SHARE FELL TO 12 IN MIDMARCH FROM 15 IN LATE JANUARY MARKETING EXECUTIVES SAY IT IS STILL TOO EARLY TO TELL WHETHER CRYSTAL PEPSI IS ON COURSE TO MEET ITS YEAREND MARKETSHARE TARGET OF 2 WHICH WOULD MEAN 1 BILLION IN ANNUAL RETAIL SALES ACHIEVING THAT GOAL WOULD MAKE CRYSTAL PEPSI THE BESTSELLING NEW SOFT DRINK SINCE DIET COKE'S 33SHARE DEBUT A DECADE AGO BUT ONE THING IS CERTAIN ANY CHANGES NOW IN CRYSTAL PEPSI'S MARKETING WON'T BENEFIT FROM THE CREST OF PUBLICITY PEPSI GENERATED WHEN THE PRODUCT WAS INTRODUCED PEPSI REFORMULATED CRYSTAL PEPSI'S TASTE WHILE IT WAS IN TEST MARKETS WHERE IT CALLED THE NEW DRINK THE NEXT GENERATION OF COLA THE COMPANY HAD TESTED CRYSTAL PEPSI FOR ABOUT NINE MONTHS IN SEVERAL CITIES BUT THE TASTESURPRISE PROBLEM BECAME MORE PRONOUNCED WHEN THE COMPANY TOOK THE COLA NATIONWIDE IN LATE JANUARY SYD PASTOR EXECUTIVE VICE PRESIDENT FOR THE PEPSI BOTTLER IN BUFFALO NY BECAME CONCERNED WHEN HE SAW CONSUMERS SURPRISED AND UNHAPPY THAT CRYSTAL PEPSI DIDN'T TASTE LIKE REGULAR PEPSI PEPSI IS GOING TO HAVE TO RELATE THE FACT THAT THE TASTE IS DIFFERENT HE SAID THEN CRYSTAL PEPSI'S ADVERTISING LINE SINCE THE NATIONAL LAUNCH YOU'VE NEVER SEEN A TASTE LIKE THIS HAS AIMED TO COMMUNICATE THAT DISTINCTION BUT PERHAPS BECAUSE OF THE PLAYFULNESS OF THE SLOGAN IT APPARENTLY HASN'T QUASHED THE WIDESPREAD EXPECTATION THAT CRYSTAL PEPSI WOULD TASTE LIKE REGULAR PEPSI IT'S LIKE OFFERING A KID A SUCKER AND THEN TAKING IT BACK SAY TOM PIRKO A LOS ANGELES BEVERAGE CONSULTANT MARKETING IS 80 ANTICIPATION ONE PEPSI MARKETER SAYS THE COMPANY ALWAYS KNEW THERE WAS THE POTENTIAL FOR CONFUSION AFTER ALL CRYSTAL PEPSI DOES HAVE THE PEPSI NAME BUT PEPSI THOUGHT THE RISK WAS MINIMAL AND COULDN'T BE HELPED PEPSI COULDN'T OVERWHELM THE CONSUMER WITH SEVERAL MESSAGES AND IT DIDN'T WANT TO USE SOCALLED NEGATIVE POSITIONING SAYING THAT CRYSTAL PEPSI WASN'T THIS OR THAT IN THE END HE CONCEDES THE COMPANY UNDERESTIMATED THE SUBTLETY OF THE YOU'VE NEVER SEEN A TASTE LIKE THIS MESSAGE SAYS MR SWETTE WHAT WE'RE FINDING OUT IS THAT WE HAVE TO BE MORE AND MORE DIRECT ON TASTE ANOTHER SHORTCOMING OF CRYSTAL PEPSI'S ADVERTISING MARKETING EXECUTIVES SAY IS THAT IT FAILS TO IDENTIFY AND STRESS IMPORTANT PRODUCT ATTRIBUTES CRYSTAL PEPSI WAS DESIGNED TO GIVE CONSUMERS A NEW BENEFIT A '90S REASON TO DRINK COLA WITHOUT COLOR CAFFEINE OR PRESERVATIVES IT IS SUPPOSED TO BE PERCEIVED AS BETTER FOR YOU THOUGH SOME OF THOSE FACTORS ARE MENTIONED IN THE CRYSTAL PEPSI SPOTS COMMERCIALS FOR MILLER LITE WHEN IT WAS LAUNCHED AS A NEW BEVERAGE HAMMERED AWAY AT ITS ATTRIBUTES GREAT TASTE AND LESS FILLING MR SWETTE SAYS FUTURE ADVERTISING WILL REINFORCE CRYSTAL PEPSI'S BENEFITS FOR PEPSI ITS CRYSTAL PRODUCTS REPRESENT ONE OF THE BIGGEST AND MOST VISIBLE ROLLS OF THE DICE USING THE POWER OF THE FLAGSHIP NAME OTHER RECENT ATTEMPTS HAVEN'T FARED WELL PEPSI AM AN EXTRACAFFEINE COLA AIMED AT MORNING COFFEE DRINKERS AND PEPSI'S WILD BUNCH FRUITFLAVORED COLAS NEVER MADE IT OUT OF TEST MARKETS 9304300061 930430 POLITICS & POLICY HOUSE CLEARS BILL TO GRANT LINEITEM VETO BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HOUSE APPROVED AND SENT TO THE SENATE A MODIFIED LINEITEM VETO BILL GIVING PRESIDENT CLINTON GREATER POWER TO STRIKE INDIVIDUAL APPROPRIATIONS FROM SPENDING LEGISLATION THE FINAL 258157 VOTE BELIED WEEKS OF PARTISAN JOCKEYING OVER THE FATE OF THE INITIATIVE WHICH BECAME A MAJOR TEST OF THE HOUSE LEADERSHIP'S ABILITY TO REPAY DEMOCRATIC MODERATES AND CONSERVATIVES FOR THEIR SUPPORT OF THE CLINTON ADMINISTRATION'S ECONOMIC PROGRAM MINDFUL OF THIS REPUBLICANS MOUNTED A CONCERTED EFFORT TO STYMIE PASSAGE AND SO ISOLATE THE DEMOCRATS BUT WHEN THE GOP'S OWN ALTERNATIVE FAILED YESTERDAY BY 219198 THE RESISTANCE SOON COLLAPSED AS THE MINORITY SPLIT ALMOST EVENLY ON FINAL PASSAGE DEMOCRATS VOTED BY A GREATER THAN 21 MARGIN IN SUPPORT OF THE INITIATIVE THE DEMOCRATIC LEADERSHIP'S STRATEGY REPRESENTS A PERSONAL CHALLENGE TO THE PARTY'S PROUD SENATE PATRIARCH APPROPRIATIONS COMMITTEE CHAIRMAN ROBERT BYRD OF WEST VIRGINIA I THINK IT'S A WORTHY IDEA AND IT'S AN EXPERIMENT THAT WE OUGHT TO TRY SAID MAJORITY LEADER RICHARD GEPHARDT OF MISSOURI SEEKING TO PUT THE BEST FACE ON THE BARGAIN BUT IN A BRIEF STATEMENT MR BYRD DESCRIBED THE HOUSE ACTION AS UNFORTUNATE AND THREATENING END OF THE YEAR CHAOS WHEN MOST APPROPRIATIONS LEGISLATION IS ADOPTED AT THIS TIME SENATE DISPOSITION OF THIS BILL IS UNCERTAIN SAID MR BYRD IF CONGRESS INSISTS ON GOING DOWN THIS ROAD HOWEVER IT IS CLEAR THAT CONSIDERABLE MODIFICATIONS WILL HAVE TO BE MADE TO THIS LEGISLATION IN THE SENATE SEN BYRD IS A FORMIDABLE OPPONENT BUT THE DEBATE COMES AT A TIME WHEN HE MUST BE MINDFUL OF COMPLAINTS ABOUT HIS SOMETIMES HEAVYHANDED TACTICS DURING THE FIGHT OVER MR CLINTON'S ECONOMIC STIMULUS BILL THE REPUBLICANS' SUCCESS IN THAT CONFRONTATION HAS EMBOLDENED MR BYRD'S CRITICS AND THE PRESIDENT IS CALLING FOR ENACTMENT OF THE HOUSEPASSED BILL THE HOUSE BILL STOPS SHORT OF GIVING THE PRESIDENT AN OUTRIGHT VETO BUT SETS OUT AN EXPEDITED PROCEDURE THAT PROMISES PROMPT ACTION ON ANY RESCISSIONS OR SPENDING CUTS PROPOSED BY THE ADMINISTRATION THE APPROPRIATIONS COMMITTEE LEADERSHIP WOULD HAVE THE OPTION OF OFFERING ALTERNATIVE SAVINGS FROM THE SAME GENERAL ACCOUNTS BUT CONGRESS COULD NO LONGER SIMPLY IGNORE RESCISSIONS PUT FORWARD BY THE ADMINISTRATION THIS APPROACH PRESERVES THE PRINCIPLE THAT SPENDING CUTS WILL BE DECIDED BY A STRAIGHT MAJORITY VOTE BY CONTRAST THE REPUBLICAN APPROACH WOULD HAVE REQUIRED A TWOTHIRDS MAJORITY TO OVERTURN A VETO STILL THE EXECUTIVE GAINS UNPRECEDENTED LEVERAGE BY BEING BETTER ABLE TO FRAME THE DEBATE AND TARGET PAROCHIAL ITEMS IMPORTANT TO LAWMAKERS DISAPPOINTED REPUBLICANS LIKE CONSERVATIVE FRESHMAN REP ERNEST ISTOOK OF OKLAHOMA COMPLAINED THAT THE SHIFT OF POWER TO THE PRESIDENT WILL PROVE INFINITESIMAL BUT THE DEMOCRATS' WILLINGNESS TO EMBRACE THE CHANGE TESTIFIES TO THE MOOD OF SELFLOATHING IN CONGRESS AND A DEFENSIVENESS ABOUT SPENDING DECISIONS DESPITE GOP CRITICISM SUCH FISCAL CONSERVATIVE GROUPS AS THE NATIONAL TAXPAYERS UNION JOINED IN SUPPORT OF THE MEASURE YOU CAN CALL IT WHAT YOU WANT SAID REP BUTLER DERRICK D SC BUT IT IS AS CLOSE AS WE HAVE COME TO BEING ACCOUNTABLE IN THIS BODY 9304300060 930430 TECHNOLOGY & HEALTH IN THE LAB SHOES FOR DIABETICS TAKE BIG STEP FORWARD BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL STATE COLLEGE PA FRANK TARTAGLIONE GAZES THANKFULLY AT HIS 10 TOES A FEW MONTHS AGO HE MIGHT HAVE HAD ONLY NINE LIKE MANY OTHER DIABETICS WHO HAVE HAD THE DISEASE FOR 10 YEARS OR MORE HE HAS LOST MOST NERVE SENSATION IN HIS FEET WHEN HE SLASHED THE BIG TOE OF HIS RIGHT FOOT ON A PIECE OF GLASS HE DID WHAT MANY DIABETICS WITH NERVE LOSS DO HE IGNORED THE WOUND BECAUSE HE COULDN'T FEEL THE PAIN HIS ULCER DIDN'T HEAL FOR 2 1/2 YEARS HIS PHYSICIAN RECOMMENDED AN AMPUTATION INSTEAD MR TARTAGLIONE MADE HIS WAY HERE TO THE CENTER FOR LOCOMOTION STUDIES AT PENNSYLVANIA STATE UNIVERSITY THE LABORATORY RUNS TWO DIABETIC FOOT CLINICS ONE OF WHICH FITTED HIM WITH A SPECIAL CAST THE CAST REDUCED THE PRESSURE ON MR TARTAGLIONE'S ULCER AND THE WOUND HAS ALMOST HEALED BUT THE SCIENTIFIC WORK ON HIS FEET IS ONLY JUST BEGINNING OUR CHALLENGE NOW IS TO DEVELOP THERAPEUTIC FOOTWEAR FOR MR TARTAGLIONE AND PREVENT THE PROBLEM FROM RECURRING SAYS PETER KAVANAGH DIRECTOR OF THE CENTER OVER 80 OF THE 56000 DIABETESRELATED AMPUTATIONS CONDUCTED IN THE US EACH YEAR STEM FROM MINOR LESIONS THAT OFTEN CAN BE HEALED WITH PROPERFITTING FOOTWEAR DR KAVANAGH SAYS THE 45YEAROLD PROFESSOR OF LOCOMOTION STUDIES ASSERTS THAT WHILE PHYSICIANS ROUTINELY PRESCRIBE FOOTWEAR FOR DIABETICS TREATMENT IS MOSTLY A HITANDMISS PROCESS THAT DOESN'T ALWAYS HEAL ULCERS BACKED BY A 200000 NATIONAL INSTITUTES OF HEALTH GRANT DR KAVANAGH AND HIS TEAM HAVE DEVISED A BATTERY OF HITECH TESTS THAT WILL LEAD TO A PRETTY LOWTECH PRODUCT BETTERFITTING SHOES SUCH SHOES COULD ACHIEVE AT LEAST HALF A BILLION DOLLARS IN ANNUAL SAVINGS FROM AVERTED AMPUTATIONS SAYS JAN ULBRECHT MEDICAL DIRECTOR OF THE CLINICS DR KAVANAGH IS BUILDING A COMPUTERIZED MODEL HE BELIEVES WILL HELP PREDICT WHEN DIABETICS' FEET ARE LIKELY TO DEVELOP ULCERS AND WHERE WE WANT TO TAKE THE ART OUT OF THERAPEUTIC FOOTWEAR AND PUT SOME SCIENCE INTO IT HE SAYS THE LAB'S CENTERPIECE IS AN ELECTRONIC PLATFORM THAT MEASURES PRESSURE ON VARIOUS AREAS OF THE SOLE THE ORIGINAL VERSION OF THIS MACHINE WAS DESIGNED IN 1981 BY PROF KAVANAGH AND EWALD HENIG A GRADUATE STUDENT THE LAB'S CURRENT PLATFORM HOWEVER IS BUILT BY GERMANYBASED NOVEL GMBH AND IS MORE SOPHISTICATED THE PLATFORM HAS A MATRIX OF 1400 CAPACITORS THAT CHANGE THEIR ELECTRONIC OUTPUT DEPENDING ON THE PRESSURE THE AMPLIFIED SIGNALS ARE PROCESSED BY A COMPUTER A FEW SECONDS AFTER A PATIENT WALKS BAREFOOT ACROSS THE 24BY18 INCH PLATFORM AN IMAGE OF THE ELECTRONIC FOOTPRINT POPS UP ON THE COMPUTER SCREEN THE RED HOT AREAS INDICATE WHERE PRESSURE IS HIGHEST AND WHERE ULCERS COULD DEVELOP PROF KAVANAGH ALSO WANTS TO KNOW HOW THICK FOOT TISSUE IS FOR INDIVIDUAL PATIENTS HIS TEAM HAS BUILT A MACHINE THAT SQUEEZES THE APPROPRIATE AREA OF THE FOOT THEN SHOOTS OUT ULTRASOUND WAVES THE WAVES TRAVEL THROUGH THE SOLE AND MEASURE TISSUE THICKNESS MUCH LIKE A SONAR DEVICE IN PERHAPS A YEAR DR KAVANAGH EXPECTS TO USE ALL THE COLLECTED DATA TO BUILD A COMPUTERIZED SNAPSHOT OF A PATIENT'S IDEAL CUSTOM SHOE THE MANYHUED COMPUTER PICTURE WILL SHOW HOW THICK THE SOLE SHOULD BE AND HOW THE INTERNAL CONTOURS CORRESPOND TO THE UNIQUE PRESSURE POINTS OF THE PATIENT'S FOOT THE DATA WILL THEN BE MATCHED TO PROPERTIES OF VARIOUS FOAMS RUBBERS AND LEATHERS USED TO MAKE THE SHOE AN ORTHOPEDIC SHOEMAKER WILL MANUFACTURE THE FOOTWEAR THE TWO FOOT CLINICS HAVE TOGETHER TREATED OVER 300 PEOPLE SO FAR AND THERE'S A WAITING LIST ONE PATIENT MAHLOU WAGNER HAD FOOT LESIONS THAT DIDN'T HEAL FOR A YEAR DESPITE HIS USING CRUTCHES BUT THANKS TO LABDESIGNED FOOTWEAR WHICH COST 590 HIS ULCERS HAVE NOW DISAPPEARED I'D PAY 10000 TO NOT HAVE TO WEAR CRUTCHES AGAIN AVOWS THE 72YEAROLD MR WAGNER AS HE PLODS AWKWARDLY DOWN THE LENGTH OF THE LAB IN HIS FIVEINCHTALL SHOES PROF KAVANAGH CAME TO THE US FROM ENGLAND 20 YEARS AGO AN AVID RUNNER HE HAD ALSO STUDIED BIOMECHANICS THE APPLICATION OF ENGINEERING PRINCIPLES TO FUNCTIONS OF THE HUMAN BODY I BECAME FASCINATED WITH THE FOOT BECAUSE IT WAS A NEGLECTED ORGAN HE SAYS HE WAS LATER HIRED BY TWO ATHLETIC SHOE COMPANIES TO HELP THEM DESIGN RUNNING SHOES BUT HE TIRED OF THIS AFTER FIVE YEARS HE SAYS THE COMPANIES WERE USING THE DATA HE GENERATED TO STRETCH THE TRUTH IN THEIR ADVERTISING THE TURNING POINT CAME WHEN HE CODESIGNED THE FIRST PRESSURE PLATFORM AND DECIDED IT WOULD BETTER SERVE DIABETIC PATIENTS THAN ATHLETICSHOE MAKERS DESPITE PROGRESS ON THE TECHNOLOGY PROF KAVANAGH AND THOSE WHO SUPPORT HIS IDEAS SAY THEY MUST NOW WRESTLE WITH A FAR MORE PEDESTRIAN PROBLEM HOW TO CONVINCE DOCTORS THAT THEY NEED TO EXAMINE DIABETIC PATIENTS' FEET MORE OFTEN THE NATION'S AGING POPULATION PRESENTS ADDITIONAL WORRY DIABETICS OVER THE AGE OF 65 ARE MORE LIKELY TO LOSE SENSATION IN THEIR FEET WHICH COULD LEAD TO ULCERS AND LOSS OF A LIMB THE SCANDAL HERE IS THAT MEDICARE WILL PAY DOCTORS TO AMPUTATE BUT THEY WON'T PAY FOR PREVENTIVE FOOTWEAR SAYS JOHN DUFFY FORMER ASSISTANT SURGEON GENERAL AND NOW DIRECTOR OF THE C EVERETT KOOP INSTITUTE AT DARTMOUTH COLLEGE A FEDERAL STUDY MEASURING THE COSTEFFECTIVENESS OF SUCH SHOES WILL SOON BE SUBMITTED TO CONGRESS IF THE RESULTS ARE POSITIVE THE MEDICARE RULE COULD BE CHANGED BILL BOETTGE OF THE PRESCRIPTION FOOTWEAR ASSOCIATION SAYS I FORESEE MORE LABS AND SPECIALIZED FOOT CLINICS LIKE PROF KAVANAGH'S CROPPING UP AROUND THE COUNTRY TO WHICH A GENERAL PRACTITIONER CAN SIMPLY REFER DIABETIC PATIENTS 9304300059 930430 BUSINESS BRIEF DRESS BARN INC CONCERN TO MOVE OPERATIONS TO CUT COSTS SIGNIFICANTLY' DRESS BARN INC STAMFORD CONN SAID IT PLANS TO CUT COSTS SIGNIFICANTLY BY MOVING ITS OPERATIONS FROM CONNECTICUT TO A FACILITY IN SUFFERN NY LEASED FROM AMERICAN TELEPHONE & TELEGRAPH CO THE WOMEN'S CLOTHING RETAILER SAID THAT IN JANUARY IT EXPECTS TO BEGIN CONSOLIDATING ITS THREE DISTRIBUTION CENTERS AND HEADQUARTERS IN CONNECTICUT INTO THE 510000SQUARE FOOT AT&T FACILITY DRESS BARN CHIEF FINANCIAL OFFICER ARMAND CORREIA SAID THE COMPANY EXPECTS SIGNIFICANT COST SAVINGS FROM THE MOVE AND WILL BE PAYING THE SAME AMOUNT FOR ABOUT TWICE AS MUCH SPACE AS IT NOW OCCUPIES HE DECLINED TO BE MORE SPECIFIC NEW YORK OFFICIALS HELPED SEAL DRESS BARN'S DECISION TO MOVE WITH A 265 MILLION FINANCIAL PACKAGE TO HELP WITH SITE IMPROVEMENTS NEW MACHINERY AND EMPLOYEE TRAINING MR CORREIA SAID THE COMPANY WAS RELUCTANTLY LEAVING CONNECTICUT BUT FOUND A FACILITY SUITED TO ITS AMBITIOUS EXPANSION PLANS ONLY AFTER AN 18MONTH SEARCH WITH THE NEW FACILITY THE COMPANY EXPECTS TO BOOST ITS WORK FORCE TO 650 BY JANUARY 1995 FROM 400 NOW AND EXPAND THE NUMBER OF ITS STORES TO 1000 BY 1996 FROM 660 HE SAID 9304300058 930430 BUSINESS BRIEF DIME SAVINGS BANK OF NEW YORK MORTGAGE INSURANCE TIED TO JOB LOSSES IS OFFERED DIME SAVINGS BANK OF NEW YORK SAID IT WOULD OFFER JOB LOSS MORTGAGE INSURANCE TO QUALIFYING BORROWERS IN THE EVENT THEY INVOLUNTARILY LOSE THEIR JOBS UNDER TERMS OF THE POLICY DIME WOULD COVER A CUSTOMER'S ENTIRE MONTHLY MORTGAGE OBLIGATION INCLUDING PRINCIPAL INTEREST TAXES AND INSURANCE OF AS MUCH AS 3500 A MONTH FOR AS LONG AS THREE MONTHS FOR A HOMEOWNER WHO LOST A JOB INVOLUNTARILY THE POLICY WOULD COVER THE SIX MONTHS FOLLOWING THE CLOSING OF THE LOAN TO OUR KNOWLEDGE WE ARE THE FIRST IN THIS MARKETPLACE TO OFFER SOMETHING LIKE THIS SAID A DIME SPOKESMAN DIME WOULD NOT DISCLOSE WHAT THE PREMIUM FORMULA WOULD BE BUT SAID IT WOULD BE COMPARABLE TO AN AUTOINSURANCE OR HEALTHINSURANCE POLICY GREAT AMERICAN INSURANCE CO CINCINNATI WILL BE THE INSURER FOR THE POLICY 9304300057 930430 COMMODITIES GOLD LEADS POWERFUL RALLY IN PRECIOUS METALS FUELED BY FRESH BUYING AND PERSISTENT GAINS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GOLD LED A POWERFUL RALLY IN PRECIOUS METALS FUTURES TRADING CLIMBING 300 TO 35740 AN OUNCE ON THE ACTIVE JUNE CONTRACT JULY SILVER SHOT UP 172 CENTS TO FINISH AT 4380 AN OUNCE PARTLY ON THE COATTAILS OF RESURGENT GOLD BUT ALSO ON GROWING MARKET PERCEPTIONS THAT THE METAL'S SUPPLYANDDEMAND EQUATION IS LOOKING INCREASINGLY FAVORABLE TRADERS SAID PLATINUM FOR JULY DELIVERY JUMPED 870 TO 39040 AN OUNCE THE ACTIVE JUNE PALLADIUM CONTRACT MOVED 285 HIGHER TO 11960 THE JUNE GOLD CONTRACT HAS SOARED 57 IN THE PAST WEEK TRADERS SAID THAT NUMEROUS COMMODITY FUNDS OR MANAGED POOLS OF INVESTORS' MONEY WERE TAKING PROFITS ON THEIR SIZABLE PAPER GAINS BUT THAT FRESH BUYING BY INSTITUTIONS INDIVIDUAL INVESTORS AND OTHER PLAYERS WAS PUSHING THE GOLD FUTURES AND CASH MARKETS HIGHER THE BIGGER PICTURE HAS MORE TO DO WITH THE FACT THAT GOLD HAS HELD ITS GAINS AND SO HAS SILVER SAID HUNT TAYLOR MANAGING DIRECTOR OF REYNWOOD TRADING CO YOU'RE SEEING SMART MONEY MAKE MAJOR PURCHASES AT THESE LEVELS ACCOMPANIED WITH MAJOR TRADING VOLUME BUT SEVERAL DEALERS SAID THEY THOUGHT THE UNCHARACTERISTICALLY FEVERISH GOLD MARKET WAS DUE FOR A CORRECTION BEFORE TESTING THE IMPORTANT 360 LEVEL SOMEWHERE DOWN THE LINE WE'LL HAVE A CORRECTION SAID GOLD OPTIONS TRADER MIKE HAMMER THERE'S A GOOD CHANCE IT WON'T BE TOMORROW TECHNICALLY EVERYTHING LOOKS GOOD AND VOLUME REMAINS HEAVY LATE YESTERDAY MR HAMMER WAS WORKING WITH COLLEAGUES TO ENSURE THAT THE HEAVY FLOW OF ORDERS WAS ALL FILLED PRIOR TO THE RECENT RALLY NEW YORK'S COMMODITY EXCHANGE WOULD HAVE BEEN VIRTUALLY EMPTIED OF TRADERS AND STAFF BY 3 PM THAT'S THE KIND OF DAY WE HAD HE SAID COMEX GOLD FUTURES AND OPTIONS TRADING CLOSES AT 230 PM WITH SILVER TRADING SHUTTING DOWN FIVE MINUTES EARLIER MR HAMMER SAID THAT FOR THE TIME BEING HE WAS BETTING ON A CONTINUED UPWARD MOVE IN GOLD PRICES THE TREND IS YOUR FRIEND HE SAID STEPHEN PLATT AN ANALYST WITH DEAN WITTER IN CHICAGO SAID GOLD COULD BE POISED TO MOVE SIGNIFICANTLY HIGHER IF MONETARY AUTHORITIES AMONG THE INDUSTRIAL NATIONS CONTINUE TO EASE INTEREST RATES AND FUEL CONCERNS ABOUT INFLATION GOLD IS A CLASSIC ANTIINFLATIONARY HEDGE ITS RECENT GAINS HOWEVER HAVE MORE TO DO WITH SUPPLYANDDEMAND FUNDAMENTALS THAN WITH IMMEDIATE WORRIES ABOUT INFLATION ANALYSTS SAY THE APPEARANCE THAT THE MONETARY AUTHORITIES ARE LEANING TOWARD EASE APPEARS TO BE ENCOURAGING A MOVEMENT INTO HARD ASSETS SUCH AS THE PRECIOUS METALS MR PLATT SAID HE CITED INTEREST RATE CUTS IN GERMANY AND A MULTIBILLION DOLLAR FISCAL STIMULUS PROGRAM IN JAPAN THE MOVE INTO METALS REFLECTS CONCERN THAT THESE POLICES WILL LEAD TO A RENEWAL OF INFLATIONARY PRESSURES HE SAID IN OTHER COMMODITY MARKETS YESTERDAY ENERGY PETROLEUM FUTURES ROSE ACROSS THE BOARD AFTER STRONG EUROPEAN DEMAND FOR GASOIL OR HEATING OIL HELPED TO TRIGGER TECHNICALLY DRIVEN BUYING IN LONDON AND NEW YORK ON THE NEW YORK MERCANTILE EXCHANGE CRUDE OIL FOR JUNE DELIVERY BROKE THROUGH THE PSYCHOLOGICALLY IMPORTANT LEVEL OF 2050 A BARREL AND THEN SETTLED AT 2058 UP 39 CENTS FOR THE DAY THE MAY CONTRACT FOR HEATING OIL ROSE 082 CENT A GALLON IN HEAVY TRADING TO SETTLE AT 5596 CENTS MAY GASOLINE WAS UP 135 CENTS A GALLON TO 6097 CENTS TRADERS SUGGESTED THAT TODAY'S EXPIRATION OF THE MAY CONTRACT FOR THE FUELS ACCOUNTED FOR SOME OF THE VOLATILITY ALSO ACCORDING TO DOW JONES INTERNATIONAL PETROLEUM REPORT THE PERCEPTION OF GOOD GASOIL DEMAND IN INLAND EUROPE HELPED THE MAY CONTRACT FOR THAT FUEL BREAK THROUGH RESISTANCE POINTS ON THE INTERNATIONAL PETROLEUM EXCHANGE THE RALLY IN EUROPEAN GASOIL THEN SPREAD TO HEATING OIL AND GASOLINE IN THE US ALSO SAUDI ARABIA AND IRAN THE LEADING PRODUCERS IN THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES REITERATED THAT THEY ARE HOLDING OUTPUT WITHIN THEIR OPEC QUOTAS OPEC'S APRIL PRODUCTION WHICH IS LIKELY TO TOTAL AROUND 24 MILLION BARRELS A DAY IS A MAJOR FACTOR IN THE NEARTERM OUTLOOK FOR THE OIL MARKETS GRAINS & SOYBEANS WHEAT PRICES SANK AMID GROWING SPECULATION THAT THE 700 MILLION FOODCREDIT PACKAGE FOR RUSSIA IS IN DANGER OF UNRAVELING THE MAYDELIVERY WHEAT CONTRACT AT THE CHICAGO BOARD OF TRADE FELL SEVEN CENTS A BUSHEL TO 34375 A BUSHEL RUSSIA IS BALKING AT SEVERAL CONDITIONS OF THE US FOOD FOR PROGRESS LOANS WHICH INCLUDE SHIPPING MUCH OF THE COMMODITIES ACQUIRED THROUGH THE LOWINTEREST LOANS ON US VESSELS US SHIPS GENERALLY CHARGE TWICE TO THREE TIMES THE RATES OF MANY FOREIGN VESSELS TRADERS BELIEVE THAT MOSCOW WANTS THE WHITE HOUSE TO HELP PICK UP THE COST OF THE SHIPPING EXPENSE WHICH COULD TOTAL 200 MILLION OR DROP THE CONDITION RUSSIA ALSO WANTS APPROVAL TO USE THE LOANS TO BUY US WHEAT AT SUBSIDIZED PRICES THE AGRICULTURE DEPARTMENT NORMALLY SUBSIDIZES THE COMMERCIAL SALE OF US WHEAT TO RUSSIA UNDER ITS EXPORT ENHANCEMENT PROGRAM BUT THE US PROHIBITS THE USE OF FOODAID FUNDS TO ACQUIRE SUBSIDIZED COMMODITIES RUSSIA IS ALSO EXPECTED TO PRESS FOR FURTHER RESTRUCTURING OF ITS SOUR GRAIN DEBT SINCE NOVEMBER RUSSIA HAS MISSED 8098 MILLION IN PAYMENTS ON PRIVATE BANK LOANS BACKED BY US CREDIT GUARANTEES THE DEFAULTS ARE FORCING THE AGRICULTURE DEPARTMENT TO MAKE GOOD ON THE LOANS SO FAR THE DEPARTMENT HAS PAID BANKS 3896 MILLION IT ISN'T CLEAR HOW RUSSIA MIGHT WANT ITS GRAIN DEBT RESTRUCTURED RUSSIA IS SLATED TO PAY ROUGHLY 400 MILLION BY JUNE 30 WHEAT PRICES WERE ALSO DEPRESSED BY REPORTS THAT FAVORABLE WEATHER IN KANSAS IS INCREASING THE CHANCES OF A RECORD HARD RED WINTER WHEAT HARVEST THIS SUMMER SOME ANALYSTS SAY AMPLE PRECIPITATION SO FAR THIS YEAR MIGHT RESULT IN A RECORD AVERAGE KANSAS WHEAT YIELD OF 42 BUSHELS AN ACRE 9304300056 930430 BUSINESS BRIEF HEXCEL CORP ACCOUNTING CHANGE AIDED 1STPERIOD NET OF 12 MILLION HEXCEL CORP BUOYED BY AN ACCOUNTING CHANGE THAT OFFSET OPERATING LOSSES REPORTED NET INCOME OF 12 MILLION IN THE FIRST QUARTER THE GAIN OF 16 CENTS A SHARE COMPARED WITH A LOSS OF 82 MILLION OR 113 A SHARE IN THE SAME PERIOD LAST YEAR EXCLUDING THE ACCOUNTING CHANGE FOR INCOME TAXES HEXCEL A PLEASANTON CALIF MAKER OF AEROSPACE MATERIALS POSTED AN OPERATING LOSS OF 33 MILLION OR 43 CENTS A SHARE COMPARED WITH YEAREARLIER OPERATING PROFIT OF 17 MILLION OR 24 CENTS A SHARE THE OPERATING LOSS WAS EXPECTED BY ANALYSTS AFTER TRADING WAS HALTED PENDING NEWS OF THE EARNINGS YESTERDAY HEXCEL'S STOCK WAS UNCHANGED AT 9625 IN LATE COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE REVENUE IN THE LATEST QUARTER FELL 11 TO 898 MILLION FROM 1006 MILLION AS HEXCEL CONTINUED TO SUFFER FROM CUTBACKS IN THE COMMERCIAL AIRCRAFT INDUSTRY THAT IT SUPPLIES THE COMPANY SAID IT ANTICIPATES IN THE COMING MONTHS A NUMBER OF SIGNIFICANT AND AS YET UNDETERMINED EXPENSES INCLUDING COSTS RELATED TO AN ATTEMPTED ACQUISITION AND TO SETTLEMENT OF A THREATENED PROXY CONTEST 9304300055 930430 BUSINESS BRIEF DRUG EMPORIUM INC DRUG STORE CHAIN DIRECTORS AGREE TO BUY BIGGER STAKE DRUG EMPORIUM INC SAID THREE DIRECTORS AGREED TO BUY 16 MILLION COMMON SHARES FROM THE COLUMBUS OHIO COMPANY'S FOUNDER PHILIP I WILBER AND OTHERS WHO WANT TO SATISFY PERSONAL DEBTS DAVID L KRIEGEL JOHN B GERLACH AND WILLIAM L SWEET JR WILL BUY SHARES FROM MR WILBER DIRECTOR AD PELUNIS AND OTHERS DRUG EMPORIUM AGREED IN FEBRUARY TO PURCHASE THE SHARES THIS PURCHASE OF SHARES LEAVES THE COMPANY IN A MORE FLEXIBLE FINANCIAL CONDITION THAN IF IT HAD REDEEMED THE SHARES SAID MR KRIEGEL CHAIRMAN AND CHIEF EXECUTIVE OF THE DEEPDISCOUNT DRUG STORE CHAIN MR KRIEGEL WILL BUY 600000 SHARES RAISING HIS HOLDINGS TO 959660 OR 73 OF SHARES OUTSTANDING MR GERLACH WILL PURCHASE 980000 SHARES BOOSTING HIS HOLDINGS TO 12 MILLION SHARES OR 94 MR SWEET IN HIS FIRST PURCHASE OF SHARES WILL BUY 20000 SHARES BRING HIS STAKE TO 015 THE PRICE IS BASED ON THE STOCK'S MARKET PRICE ON THE FIVE TRADING DAYS PRECEDING JAN 30