QUAKER OATS CO SAID IT STOPPED SELLING CAP'N CRUNCH CEREAL BOXES CONTAINING A TOY LINKED TO 36 FACIAL AND EYE INJURIES TO CHILDREN CHICAGOBASED QUAKER SAID THE POPPER TOY WAS PUT INTO 83 MILLION 15 AND 16OUNCE PACKAGES OF ITS CAP'N CRUNCH LINE WHICH INCLUDES CRUNCHBERRIES AND PEANUT BUTTER FLAVORS CHILDREN INJURED THEMSELVES APPARENTLY BY APPLYING THE TOY TO THEIR FACES AND EYES NONE OF THE INJURIES WERE PERMANENT A QUAKER SPOKESMAN SAID QUAKER SAID THE CEREAL ITSELF IS SAFE TO EAT BUT THAT THE TOY SHOULD BE THROWN AWAY THE COMPANY SAID IT WILL REMOVE BOXES THAT HAVEN'T ALREADY REACHED CONSUMERS AND HAS WARNED RETAILERS ABOUT THE TOY THE TOY PROMOTION BEGAN ABOUT THREE WEEKS AGO CAP'N CRUNCH IS QUAKER'S LEADING READYTOEAT CEREAL BRAND THE TOY IS A 2INCH HALFSPHERE WHICH GETS ITS NAME BY POPPING BACK TO ITS ORIGINAL SHAPE AFTER BEING INVERTED AND PLACED ON A FLAT SURFACE 9304300053 930430 BUSINESS BRIEF BF GOODRICH CO FIRM OFFERS STAKE TO PUBLIC IN ITS GEON CO SUBSIDIARY BF GOODRICH CO SAID IT OFFERED 13 MILLION SHARES OF ITS GEON CO UNIT AT 18 A SHARE GOODRICH SAID IT WILL RECEIVE ABOUT 220 MILLION BEFORE TAXES FROM THE PUBLIC OFFERING OF ITS POLYVINYL CHLORIDE UNIT WHICH IS BASED IN INDEPENDENCE OHIO IN ADDITION GOODRICH RECEIVED 160 MILLION IN A SPECIAL TAXFREE DISTRIBUTION FROM THE GEON UNIT GOODRICH BASED IN AKRON OHIO SAID THE OFFERING INVOLVED 13 PLANTS OPERATED BY GEON IN THE US CANADA AND AUSTRALIA EXCLUDED WAS AN ETHYLENE CHLORALKALI FACILITY IN CALVERT CITY KY WHICH GOODRICH WILL CONTINUE TO OPERATE THE KENTUCKY PLANT IS THE SUBJECT OF A LAWSUIT FILED BY WESTLAKE MONOMERS CORP WHICH CLAIMS ITS RIGHT OF FIRST REFUSAL WAS VIOLATED BY THE PUBLIC OFFERING GEON SHARES ARE LISTED ON THE NEW YORK STOCK EXCHANGE UNDER THE SYMBOL GON AFTER THE OFFERING GOODRICH WILL OWN ABOUT 50 OF GEON'S COMMON SHARES OUTSTANDING HOWEVER THAT COULD FALL TO 425 IF UNDERWRITERS' OVERALLOTMENT OPTIONS ARE EXERCISED IN FULL GOLDMAN SACHS & CO ACTED AS MANAGING UNDERWRITER 9304300052 930430 HEARD ON THE STREET COUNTRYFUND MANAGERS' CANDOR CAN DEFUSE SKEPTICISM OF INVESTORS REINFORCE WARNING BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL DURING THIS WEEK'S BIG COUNTRY FUND CONVENTION IN NEW YORK SOMETHING BRIEFLY WENT WRONG WITH THE SLIDE PRESENTATION FOR BRAZIL FUND JUST LIKE BRAZIL NOTHING WORKS MUTTERED EDMUND GAMES THE PUBLICLY TRADED FUND'S PORTFOLIO MANAGER INVESTORS MAY NOT HAVE EXPECTED SUCH A DISPARAGING REMARK FROM THE MANAGER OF A FUND THAT RISES AND FALLS WITH BRAZIL'S FORTUNES BUT WHEN COUNTRYFUND MANAGERS TALK TO THEIR PEERS THEY ARE BLUNT ABOUT THEIR MARKETS' RISKS BRAZIL'S ECONOMY IS SIMPLY AWFUL SAID MR GAMES ADDING THAT HE IS PRAYING HEAVILY TO ALL THE GODS THAT THEY WILL ALLOW BRAZIL TO SURVIVE ONE MORE QUARTER THE MANAGER OF MORGAN STANLEY'S LATIN AMERICAN DISCOVERY FUND ROBERT MEYER SAID THERE IS NO QUESTION THAT INSIDER TRADING MISINFORMATION AND FRONTRUNNING PLAGUE HIS FUND'S MARKETS AT THE PRESENTATION FOR JAKARTA GROWTH FUND MANAGER JAMES BOGIN FRETTED THAT INDONESIAN MARKETS ARE SO ILLIQUID THAT SOME OF HIS STOCKS TRADE ONLY ONCE EVERY SIX MONTHS AND DANNY CHAN MANAGER OF ROC TAIWAN FUND SAID HE DISTRUSTS THAT COUNTRY'S MARKETS SO MUCH THAT HE HAS 35 OF THE FUND'S ASSETS IN CASH INSTEAD OF IN TAIWANESE STOCKS THE FUND'S PRICE ROSE 43 IN THE FIRST QUARTER THE POINT OF ALL THE NEGATIVE BARBS IT SEEMED WAS TO DEFUSE INVESTORS' SKEPTICISM THROUGH AGGRESSIVE CANDOR YET IT REINFORCES THE RULE THAT SMALL INVESTORS SHOULDN'T COMMIT A LOT OF MONEY TO ANY PARTICULAR COUNTRY FUND BUT RATHER SPREAD OUT THE RISK AMONG SEVERAL INVESTORS ALREADY ARE MORE SKEPTICAL THAN THEY USED TO BE ABOUT COUNTRY FUNDS THE CLOSEDEND FUNDS WHICH ARE PUBLICLY TRADED MAINLY ON THE NEW YORK STOCK EXCHANGE AND BUY THE STOCKS OF A SINGLE FOREIGN COUNTRY HAVE ENJOYED FRENZIED BUYING INTEREST IN PAST YEARS BUT WHILE PRICES OF NEARLY ALL OF THE 55 COUNTRY FUNDS HAVE RISEN THIS YEAR THEY GENERALLY REMAIN BELOW THE VALUE OF THE STOCKS THE FUNDS ACTUALLY HOLD A SITUATION KNOWN AS TRADING AT A DISCOUNT MOST US BOND FUNDS BY CONTRAST ARE TRADING AT PREMIUMS A LOT MORE PEOPLE ARE INTERESTED IN YIELD THAN IN GLOBAL MARKETS AT LEAST FOR NOW SAYS MICHAEL PORTER WHO RAN THE COUNTRYFUND CONFERENCE WHICH WAS SPONSORED BY SMITH BARNEY HARRIS UPHAM MR PORTER AND OTHER FUND ANALYSTS INSIST THERE ARE GOOD OPPORTUNITIES AMONG THE COUNTRY FUNDS ESPECIALLY THOSE TRADING AT DISCOUNTS MR PORTER CALLS FIRST PHILIPPINE FUND THE BEST BARGAIN OF ANY COUNTRY FUND THE 135 MILLION FUND MANAGED BY CLEMENTE CAPITAL HAS BEEN TRADING AT A HEFTY 20 DISCOUNT TO ITS NET ASSET VALUE BECAUSE OF INVESTORS' CONCERNS OVER THE PHILIPPINES' POLITICAL AND ECONOMIC WOES MR PORTER SAYS IT WILL TRADE AT A PREMIUM ONE DAY THE PHILIPPINES HAS OFTEN BEEN CALLED THE SICK MAN OF ASIA AND PERHAPS TO SOME EXTENT THAT IS JUSTIFIED SAYS THE FUND'S PORTFOLIO MANAGER FRANCISCO KIT RODRIGO BUT HE ADDS THAT THE COUNTRY IS WORTH INVESTING IN ANYWAY BECAUSE MANY OF THE OPPORTUNITIES THAT HAVE ALREADY BEEN TAKEN IN THE NEIGHBORING COUNTRIES STILL EXIST IN THE PHILIPPINES SOME IMPORTANT ADVICE STAY AWAY FROM COUNTRY FUNDS TRADING AT PREMIUMS ANDREW ECONOMOS MANAGER OF SCUDDER NEW ASIA FUND SAYS HE BUYS COUNTRY FUNDS ONLY AT DISCOUNTS FOR INVESTORS THAT ELIMINATES SUCH FUNDS AS INDIA GROWTH FUND TRADING AT A 178 PREMIUM AS WELL AS SCUDDER NEW ASIA ITSELF WITH A 79 PREMIUM FIRST AUSTRALIA FUND'S LAURENCE FREEDMAN WHOSE FUND IS STILL TRADING AT A DISCOUNT DESPITE A 21 PRICE GAIN IN THE FIRST QUARTER SAID HE KNOWS PEOPLE THINK AUSTRALIA IS A LAZY BEERSODDEN COUNTRY DOWN SOUTH THAT DOESN'T DO ANYTHING WELL HE SAID HE DOESN'T AGREE WITH THE STEREOTYPE THEN HE GAVE THE AUDIENCE FREE CANS OF AUSTRALIAN BEER THE LESSON FROM ALL THIS PERHAPS IS THAT THE CANDOR OF A COUNTRYFUND MANAGER CAN BE A GOOD SIGN MARK BREEDON VICE PRESIDENT OF ALLIANCE CAPITAL'S AUSTRIA FUND WAS ONE OF THE FEW MANAGERS TO PAINT A WHOLLY OPTIMISTIC PICTURE MAYBE HE IS RIGHT SINCE HIS FUND IS UP 20 SO FAR THIS YEAR BUT THE FUND'S PRICE HAS DECLINED IN EACH OF THE PAST THREE YEARS FALLING 209 IN 1992 98 IN 1991 AND 491 IN 1990 9304300051 930430 HELP WANTED INDEX SHOWS SMALL PICKUP IN HIRING ACTIVITY NEW YORK HELP WANTED ADVERTISING REMAINED ALMOST FLAT IN MARCH ALTHOUGH A SLIGHT PICKUP IN HIRING SEEMS UNDER WAY ACCORDING TO THE CONFERENCE BOARD THE BOARD'S HELP WANTED INDEX AN INDICATOR OF HIRING PLANS SLIPPED TO 96 LAST MONTH ONE POINT BELOW FEBRUARY'S 97 AND FOUR POINTS ABOVE JANUARY'S 92 THE SEASONALLY ADJUSTED INDEX WHICH USES 1967 AS A BASE YEAR OF 100 STOOD AT 93 A YEAR EARLIER A MODEST RISE IN NEW HIRING SEEMS TO BE UNDER WAY THE NEXT TIME A RUSH OF NEW BUSINESS COMES THROUGH THE DOOR OR OVER THE PHONE MANY FIRMS ARE MORE LIKELY TO HIRE RATHER THAN INCREASE OVERTIME AS THEY HAVE BEEN DOING SAID CONFERENCE BOARD ECONOMIST KEN GOLDSTEIN THE SIGNIFICANCE OF THE MARCH INDEX ISN'T THAT IT SLIPPED A POINT SAID MR GOLDSTEIN THE KEY POINT IS THAT AFTER FEBRUARY'S RELATIVELY BIG RISE TO 97 FROM JANUARY'S 92 THE INDEX DIDN'T GIVE UP THE INCREASE HE SAID THIS LABOR MARKET ISN'T GOING TO TAKE OFF BUT WE ARE SEEING SOME MODEST PICKUP IN NEW HIRING IN THE MOUNTAIN REGION ADVERTISING VOLUME ROSE 5 IN THE MIDDLE ATLANTIC WHICH INCLUDES NEW YORK VOLUME ROSE 1 HOWEVER IN THE SOUTH ATLANTIC AND WEST SOUTH CENTRAL REGIONS VOLUMES DECLINED AT 65 AND 56 RESPECTIVELY IN ALL OTHER REGIONS DECLINES WERE BELOW 2 THE LEGACY OF DOWNSIZING CONTINUES TO WEIGH MOST HEAVILY ON THE EAST AND WEST COASTS HOME TO MANY CORPORATE HEADQUARTERS WHEN THESE LABOR MARKETS BEGIN TO RECOVER THEY ARE LIKELY TO GROW MORE SLOWLY THAN THE REST OF THE COUNTRY NOTED MR GOLDSTEIN ADDING THAT THE SLOWER ANTICIPATED GROWTH IS ONE REASON WHY THE GENERAL LABOR MARKET RECOVERY IS EXPECTED TO STRETCH INTO 1994 IN OTHER AREAS RECOVERY MAY TAKE EVEN LONGER HE SAID THE CONFERENCE BOARD SURVEYS HELPWANTED ADVERTISING VOLUME IN 51 MAJOR NEWSPAPERS EVERY MONTH THE MEASURE IS CONSIDERED A BAROMETER OF CHANGE IN THE SUPPLY OF JOBS BECAUSE ADVERTISING VOLUME IS SENSITIVE TO LABOR MARKET CONDITIONS 9304300050 930430 A COSTLY RESTRAINT THE WEST'S RECORD IN BOSNIA NOW LEAVES FEW CHOICES ALL BAD AIR STRIKES DON'T SCARE SERBS AND THEY FIGURE THE US HAS NO STOMACH FOR WAR A CLOUD ON NATO'S FUTURE BY WALL STREET JOURNAL STAFF REPORTERS ROGER THUROW IN ZVORNIK BOSNIAHERZEGOVINA AND CARLA ANNE ROBBINS IN WASHINGTON THE WAY THE MAYOR HAS IT FIGURED THE TWO BRIDGES OVER THE RIVER DRINA CONNECTING HIS TOWN OF ZVORNIK TO SERBIA WILL BE THE FIRST TO BE HIT IN ANY WESTERN MILITARY STRIKE IN BOSNIAHERZEGOVINA THE SERB ARTILLERY BATTERIES DUG IN ON THE HILLS AND IN THE WOODS WILL RETURN FIRE AND ALSO COME UNDER ATTACK BOMBS AND BULLETS WILL GO ASTRAY CRASHING INTO THE CITY CENTER THERE WILL BE CIVILIAN CASUALTIES THE SERBIAN MAYOR SAYS STILL THE SERBS HERE AREN'T BACKING DOWN INSTEAD INCREDIBLY AND AUDACIOUSLY THE ETHNIC CLEANSING OF THIS ONCE MUSLIMMAJORITY TOWN GOES ON THERE IS ONE MORE THING TO DO WE WILL CHANGE OUR NAME GO BACK TO THE WAY IT WAS SAYS THE MAYOR BRANKO GRUJIC HE REACHES BACK TO THE 15TH CENTURY WHEN THE TURKS AND THEIR MUSLIM RELIGION INVADED AND ADDED AN R TO ZVONIK A SERBIAN WORD MEANING BELL TOWER SOON HE SAYS WITH ENTHUSIASM THE SERBS WILL OFFICIALLY REMOVE THE R WHEN WE SERBS WIN A WAR WE DON'T RETREAT THE MAYOR SAYS WE'RE NOT AFRAID OF WESTERN GRENADES ANYMORE WITH THE CLINTON ADMINISTRATION LEANING TOWARD A TWOPRONGED STRATEGY OF LIFTING THE ARMS EMBARGO ON THE MUSLIMS AND THREATENING AIR STRIKES AGAINST THE SERBS SHOULD THEY LAUNCH AN OFFENSIVE BEFORE THE WEAPONS ARRIVE THE SERBS HERE SEEM TO HAVE A TWOPRONGED STRATEGY OF THEIR OWN PRESSING THEIR BLOODY MARCH TOWARD THE CREATION OF A GREATER SERBIA AND AT THE SAME TIME SUDDENLY EXPRESSING A NEW INTEREST IN PEACE AFTER THE SELFSTYLED BOSNIAN SERB PARLIAMENT SAID YESTERDAY THAT THEY WOULD TAKE ANOTHER LOOK AT A UNITED NATIONS PEACE PLAN THE SAME PLAN THEY REJECTED MONDAY NEGOTIATORS CYRUS VANCE AND LORD DAVID OWEN CALLED FOR A CONFERENCE THIS WEEKEND IN ATHENS OF ALL THREE BOSNIAN FACTIONS PRESIDENT CLINTON MET YESTERDAY WITH HIS TOP MILITARY AND NATIONAL SECURITY ADVISERS TO REFINE HIS MILITARY OPTIONS SPEAKING AFTER THE MEETING SECRETARY OF STATE WARREN CHRISTOPHER SAID THAT THE SUDDEN FLURRY OF DIPLOMACY DOES NOT CHANGE OUR PLANS AT ALL WHAT WE NEED FROM THE SERBS IS DEEDS NOT WORDS AFTER TWO YEARS OF WATCHING THE WESTERN DEMOCRACIES STAND MEEKLY BY WHILE THEY DEVOURED 30 OF CROATIA AND 70 OF BOSNIA THE SERBS ARE OVERFLOWING WITH CONTEMPT BETTING THAT THE WEST WON'T HAVE THE STOMACH TO TAKE THE ONE STEP THEY TRULY FEAR A MASSIVE INTERVENTION BY GROUND TROOPS AMERICA'S PROBLEM IS THAT THEIR SOLDIERS ARE ALSO HUMAN BEINGS MADE OF FLESH AND BLOOD SAYS DRAGAN GOJKOVIC AS HE RETURNS TO HIS POST AT ONE OF THE SERBIAN ARTILLERY POSITIONS ENFORCING THE SIEGE OF NEARBY SREBRENICA ARE THE AMERICANS PREPARED TO SEND THEIR OWN SONS INTO A WAR IN BOSNIA SOUNDING LIKE SADDAM HUSSEIN BEFORE THE WEST STRUCK IRAQ MAYOR GRUJIC SAYS YOU WON'T HAVE ENOUGH GRAVES AND BODY BAGS FOR YOUR SOLDIERS HOW DID THE BREAKUP OF YUGOSLAVIA GET THIS FAR TO THE POINT WHERE AGGRESSION RHETORIC AND INTERNATIONAL REACTION HAVE REACHED GULF WAR PROPORTIONS THE EMOTIONS THAT ARE FUELING THE DRIVE TO PUNISH THE SERBS FOR THE ATROCITIES AND BLOODSHED IN THE BALKANS ARE ALSO FEEDING SHAME AND OUTRAGE OVER THE IMPOTENCE AND RELUCTANCE OF WESTERN DEMOCRACIES TO STOP IT THE COSTS OF THE WEST'S TIMIDITY GO FAR BEYOND THE BATTLEFIELD CASUALTIES WHICH SO FAR ARE ESTIMATED TO SURPASS 150000 DEAD OR MISSING ANYTHING SHORT OF PUSHING THE SERBS OFF THEIR CONQUESTS IN CROATIA AND BOSNIA COULD SET A PRECEDENT AGGRESSION PAYS FOR OTHER NATIONALIST ADVENTURISM IN EASTERN EUROPE ALSO THE WEST'S UNWILLINGNESS TO INTERVENE APPEARS TO HAVE DEVALUED ITS INSTRUMENTS OF DETERRENCE MANFRED WOERNER THE GERMAN SECRETARYGENERAL OF THE NORTH ATLANTIC TREATY ORGANIZATION SAYS NATO'S INABILITY TO PREVENT SUCH A CONFLAGRATION WITHIN ITS EUROPEAN BACKYARD MAKES IT APPEAR INEFFECTUAL AND IRRELEVANT AND MAY EVEN WEAKEN POLITICAL AND PUBLIC SUPPORT FOR ITS CONTINUED EXISTENCE WHEN YUGOSLAVIA BEGAN BREAKING UP THREATENING CIVIL WAR IN THE FIRST HALF OF 1991 IT WAS A RUDE INTERRUPTION OF PRESIDENT BUSH'S NEW WORLD ORDER HE PASSED THE PROBLEM ON TO THE EUROPEAN COMMUNITY WHOSE LEADERS SAW THE FIGHTING AS A NUISANCE DISTRACTING FROM THEIR GOAL OF A UNITED EUROPEAN MARKET NOW THE WAR IS GNAWING AT THE CONSCIENCE OF THE CLINTON ADMINISTRATION FORCED TO LOOK UP FROM ITS FOCUS ON DOMESTIC ISSUES TO COBBLE TOGETHER INTERNATIONAL CONSENSUS ON A NEW POLICY THE INVOLVEMENT OF AMERICAN GROUND TROOPS IS THE ONLY OPTION MR CLINTON SAYS HE HAS RULED OUT BUT BECAUSE HIS WHITE HOUSE PREDECESSOR AND THE EUROPEANS FAILED TO CHECK THE FIGHTING FOR NEARLY TWO YEARS GIVING TERRITORIAL GAINS AND RESULTING HATREDS TIME TO DIG IN ALL THE OTHER OPTIONS ARE FAR MORE COMPLEX AND UNSAVORY THAN WHEN THE WAR FIRST STARTED THE DELIBERATIONS OVER WHAT COURSE TO TAKE AND THE POSSIBLE EFFECTS HAVE DIVIDED WESTERN ALLIES MORE THAN THE THREATS OF REPRISALS HAVE DIVIDED THE SERBS BRITAIN AND FRANCE SAY THEY WILL SUPPORT AIR STRIKES BUT THEY ADAMANTLY OPPOSE LIFTING OF THE ARMS EMBARGO SAYING IT WILL ONLY INCREASE THE KILLING AND JEOPARDIZE THEIR PEACEKEEPERS ON THE GROUND MANY OF MR CLINTON'S ADVISERS MEANWHILE ARGUE THAT AIR STRIKES WITHOUT ARMING THE MUSLIMS WON'T MAKE ENOUGH OF A DIFFERENCE TO END THE WAR SECRETARY OF STATE WARREN CHRISTOPHER IS EXPECTED TO TRAVEL TO EUROPE AND RUSSIA THIS WEEKEND TO TRY TO SELL THE AMERICAN POLICY ALL OF THE OPTIONS BRING WITH THEM SERIOUS RISKSAND SERIOUS UNKNOWNS IF THE GOAL OF ANY MILITARY ACTION SUCH AS AIR STRIKES IS TO PUNISH THE SERBS IT MAY FUEL SERBIAN DETERMINATION TO FIGHT EVEN HARDER TO RESIST WHAT THEY SEE AS WESTERN EFFORTS TO ANNIHILATE THEM AND THEIR ORTHODOX RELIGION IF THE GOAL IS TO FORCE THE SERBS TO SUBMIT AND JOIN THE MUSLIMS AND CROATS IN SIGNING A UNITED NATIONS PEACE PLAN THAT DIVIDES BOSNIA INTO 10 REGIONS ALONG ETHNIC LINES IT WILL BE LIKE PERFORMING A SHOTGUN MARRIAGE LIKELY TO END IN DIVORCE AND FAR GREATER WAR IN THE FUTURE AND IF THE GOAL IS TO ROLL BACK SERB CONQUESTS AIR STRIKES ALONE PROBABLY WON'T GET THE JOB DONE ON THE OTHER HAND IF THE ANSWER IS MORE ECONOMIC SANCTIONS HOW LONG IS THE WORLD WILLING TO WAIT FOR THE MEASURES TO BRING THE SERBS TO THEIR KNEES EARLIER THIS WEEK ON THE DAY THAT A NEW ROUND OF SANCTIONS TOOK EFFECT THE SERBS RESPONDED BY INVADING ANOTHER MUSLIM ENCLAVE IN BOSNIA AND IF THE ANSWER IS TO LIFT THE ARMS EMBARGO ON THE MUSLIMS WHAT IS THE NEXT STEP IF THE MUSLIMS CAN'T REPEL THE SERBS WHILE THE HISTORY OF WESTERN RESPONSE OVER THE PAST TWO YEARS IS DRIVING THE FRENZIED CALLS FOR TOUGHER MEASURES IT ALSO PROVIDES SOME WARNINGS ABOUT ALLOWING PASSION TO DICTATE POLICY IT WAS PUBLIC OUTRAGE OVER SERBIAN AGGRESSION IN CROATIA THAT LED THE EUROPEANS TO RECOGNIZE CROATIA AND SLOVENIA AS INDEPENDENT REPUBLICS IN JANUARY 1992 MOST DIPLOMATS AND POLICY ANALYSTS NOW BELIEVE THAT THE ACTION IGNITED ETHNIC DIFFERENCES AND TRIGGERED THE BOSNIAN WAR TWO MONTHS LATER THE PROBLEMS THAT WE NOW HAVE FOLLOW DIRECTLY FROM THAT RECOGNITION SAYS LORD CARRINGTON THE BRITISH DIPLOMAT WHO ONCE HEADED EUROPEAN EFFORTS TO NEGOTIATE PEACE IN YUGOSLAVIA HE ACCEPTED THE JOB IN AUGUST 1991 ON THE BASIS THAT THERE WOULD BE NO RECOGNITION OF ANY REPUBLICS UNTIL THEY ALL AGREED TO A POLITICAL SOLUTION A FEW MONTHS LATER THE EC PULLED THE RUG OUT FROM UNDER HIM RECOGNITION HE SAYS WAS A DECISION WHICH REALLY CAUSED THE BOSNIAN CIVIL WAR BRENT SCOWCROFT PRESIDENT BUSH'S NATIONAL SECURITY ADVISER AGREES ONCE THAT HAPPENED I'M NOT SURE ANYTHING COULD HAVE STOPPED IT THE BUSH ADMINISTRATION DID VERY LITTLE TO TRY MR BUSH AND HIS TOP ADVISERS WERE UNCOMFORTABLE WITH SUDDEN CHANGES IN A RADICALLY CHANGING WORLD AT THE URGING OF THE EUROPEANS SECRETARY OF STATE JAMES BAKER WENT TO BELGRADE JUST DAYS BEFORE CROATIA AND SLOVENIA DECLARED THEIR INDEPENDENCE AND PUBLICLY WARNED YUGOSLAVS AGAINST QUICKLY CHANGING THE STATUS QUO SOON AFTER THAT SPEECH THE YUGOSLAV ARMY BELIEVING IT HAD THE SUPPORT OF THE US PLOWED INTO SLOVENIA TO TRY TO PREVENT ITS SECESSION IGNITING THE CIVIL WAR MR BUSH'S CAUTION WAS FURTHER REINFORCED BY THE ARGUMENTS OF HIS TWO TOP YUGOSLAVIA EXPERTS GEN SCOWCROFT AND DEPUTY SECRETARY OF STATE LAWRENCE EAGLEBURGER BOTH HAD SERVED IN BELGRADE AND BOTH URGED THE PRESIDENT TO STAY AWAY FROM YUGOSLAVIA'S TANGLE OF ETHNIC PASSIONS WARNING OF A DIPLOMATIC AND MILITARY QUAGMIRE THEY TOLD THE PRESIDENT THAT IT WOULD BE DIFFICULT IF NOT IMPOSSIBLE FOR THE US EVEN TO CHOOSE THE RIGHT SIDE PRESIDENT BUSH ALSO BELIEVED THAT WHILE THE DISINTEGRATING SOVIET UNION WAS AMERICA'S PROBLEM YUGOSLAVIA WAS EUROPE'S AND THE EUROPEANS WERE EAGER TO SHOW THEY COULD DEAL WITH A PROBLEM IN THEIR OWN BACKYARD WITHOUT US LEADERSHIP BUT THE NOTION OF EUROPEAN UNITY ON SUCH MATTERS PROVED TO BE A MIRAGE SEPARATE INTERESTS AND OLD ALLIANCES SHOWED THEMSELVES FROM THE OUTSET THE FRENCH HAVE TRADITIONAL TIES TO THE SERBS THE GERMANS TO THE CROATS AND SLOVENES THE EUROPEANS DISPATCHED LORD CARRINGTON TO CONVENE A CONFERENCE OF SERBS CROATS AND MUSLIMS ALL OF WHOM PROVED TO BE UNTRUSTWORTHY PARTNERS AT THE TABLE PROMISES WERE BROKEN ROUTINELY ON THE GROUND ATROCITIES WERE COMMITTED BY ALL THREE SIDES IN THE SPRING OF 1992 AS THE SERBIAN SHELLING OF SARAJEVO BECAME A NIGHTLY FEATURE ON THE EVENING NEWS MR BAKER'S SPOKESWOMAN AND CHIEF POLITICAL ADVISER MARGARET TUTWILER HELD A MEMORABLE PRESS BRIEFING AT THE STATE DEPARTMENT SHE DETAILED THE PRIVATIONS IN SARAJEVO TALKING ABOUT PEOPLE EATING THISTLES TO STAY ALIVE AND DIABETICS WHO WERE DYING FOR LACK OF INSULIN IT WAS THAT ANGUISH OR AT LEAST THOSE TELEVISION IMAGES THAT DROVE THE US TO PRESS FOR A UN RESOLUTION AUTHORIZING ALL NECESSARY MEANS TO ENSURE THE DELIVERY OF HUMANITARIAN AID TO SARAJEVO THE ADMINISTRATION BEGAN SERIOUSLY WEIGHING MILITARY OPTIONS FOR THE FIRST TIME STILL FEARFUL OF MILITARY INVOLVEMENT IN THE BALKANS MR BUSH PRIVATELY TOLD HIS ADVISERS THAT AMERICAN GROUND TROOPS WOULD NEVER BE SENT TO YUGOSLAVIA THE QUESTION OF AIR STRIKES HOWEVER WAS VERY MUCH ALIVE PARTICULARLY IN THE STATE DEPARTMENT WHERE MR BAKER'S STAFF WAS CONSTANTLY PREPARING OPTION PAPERS FOR MILITARY ACTION WHEN NEWS OF SERBIAN CONCENTRATION CAMPS CAME OUT LAST SUMMER ACCORDING TO ONE BAKER AIDE I THOUGHT IT WAS TRULY A GO BUT GEN SCOWCROFT AND THE PENTAGON ARGUED AGAINST THE USE OF LIMITED FORCE AS THE US DEBATED AND TEMPORIZED THE SERBS GREW INCREASINGLY CONTEMPTUOUS OF THE WEST AND INCREASINGLY BRAZEN THEY WERE FURTHER PERSUADED IN THE FALL OF 1992 THAT THE US WOULDN'T ACT MILITARILY WHEN JOINT CHIEFS OF STAFF CHAIRMAN COLIN POWELL WROTE AN OPINION PIECE IN THE NEW YORK TIMES HE WARNED THAT THE US COULD GET SUCKED INTO A QUAGMIRE AND THAT LIMITED FORCE COULDN'T WORK THIS GAVE THE SERBS CONFIDENCE THAT THE US WOULD STEER CLEAR OF THE BALKANS SERBIAN COMMANDERS TRIED TO PLAY ON US APPREHENSIONS CLAIMING THEY WOULD WITHDRAW TO THE HILLS AND FORESTS AND TIE UP WESTERN TROOPS THE WAY TITO'S PARTISANS DEFIED THE GERMANS IN WORLD WAR II A FORMER HIGHRANKING US OFFICIAL NOW CALLS THE ARTICLE AND ITS IMPACT UNFORTUNATE DURING THE PRESIDENTIAL CAMPAIGN BOSNIA BECAME A MINOR CAUSE CELEBRE WHEN CANDIDATE BILL CLINTON CALLED FOR A MULTILATERAL MILITARY EFFORT INCLUDING AIR STRIKES TO PUNISH SERBIAN AGGRESSION AIDES SAY MR CLINTON WAS GENUINELY MOVED BY THE SUFFERING IN BOSNIA AND OUTRAGED BY REPORTS OF SERBIAN CONCENTRATION CAMPS A FEELING REINFORCED BY RUNNING MATE AL GORE WHO CONTINUES TO BE THE ADMINISTRATION'S LEADING PROPONENT FOR THE USE OF FORCE IN BOSNIA MR CLINTON'S TOUGH TALK WAS ALSO GOOD POLITICS IT CHALLENGED PRESIDENT BUSH'S OTHERWISE STRONG FOREIGN POLICY RECORD AND WON A NUMBER OF CONSERVATIVE DEMOCRATS BACK TO MR CLINTON'S CAUSE ONCE MR CLINTON WAS IN THE WHITE HOUSE AIDES SAY BOSNIA PROVED A FAR TOUGHER NUT TO CRACK THE SITUATION ON THE GROUND HAD DETERIORATED BADLY IN THE INTERVENING MONTHS AS THE SERBS GRABBED MORE AND MORE LAND THE EUROPEAN ALLIES MEANWHILE ADAMANTLY REFUSED TO CONSIDER MILITARY ACTION AND RUSSIAN PRESIDENT BORIS YELTSIN WAS IN A LIFEANDDEATH STRUGGLE WITH HIS CONSERVATIVE PARLIAMENT WHICH CONSTANTLY ATTACKED HIM FOR SELLING OUT SERBIA A TRADITIONAL ALLY AIDES ALSO ACKNOWLEDGE THAT THEY OVERESTIMATED THE EFFICACY OF AIR STRIKES IN TAKING OUT SERBIAN ARTILLERY A NOTION THEY WERE QUICKLY DISABUSED OF BY THE PENTAGON DURING PREINAUGURAL BRIEFINGS IT WAS MORE COMPLICATED THAN WE UNDERSTOOD WE WERE A LITTLE TAKEN IN BY CNN AND THE GULF WAR ACKNOWLEDGES ONE SENIOR AIDE PRESIDENT CLINTON DECIDED TO GIVE DIPLOMATIC NEGOTIATIONS ANOTHER CHANCE EVEN THOUGH HE AND HIS ADVISERS WERE UNCOMFORTABLE WITH THE PEACE PLAN DEVELOPED BY THE UN AND THE EUROPEAN COMMUNITY NEGOTIATORS MR VANCE AND LORD OWEN BY DIVIDING BOSNIA INTO 10 ETHNICALLY BASED PROVINCES THE PLAN SEEMED TO REWARD SERBIAN AGGRESSION CRITICS SAID BUT SHORT OF MILITARY ACTION IT APPEARED TO BE THE ONLY GAME IN TOWN THE ADMINISTRATION DECIDED TO SWALLOW ITS CONCERNS ENDORSING THE PROCESS OF NEGOTIATIONS IF NOT THE SPECIFIC PLAN THE ADMINISTRATION SET ABOUT CONVINCING THE BOSNIAN MUSLIMS TO SIGN ON TO REASSURE THEM MR CLINTON ORDERED THE AIRDROP OF FOOD AND MEDICINES TO BESIEGED MUSLIM TOWNS AND PUBLICLY PROMISED TO SEND AMERICAN TROOPS TO ENFORCE ANY PEACE ACCORD ALL SIDES HAD AGREED TO PRIVATELY VICE PRESIDENT GORE ALSO PROMISED THE MUSLIMS THAT THE ADMINISTRATION WOULD WORK TO LIFT THE INTERNATIONAL ARMS EMBARGO ON THE BOSNIAN GOVERNMENT IF THE SERBS PROVED RECALCITRANT WITH THE AMERICAN COMMITMENTS AND NO OTHER ALTERNATIVES BOSNIA'S MUSLIMLED GOVERNMENT SIGNED ON TO THE PEACE PLAN IN LATE MARCH WITH THE MUSLIMS AND CROATS ON BOARD THE ADMINISTRATION AND ITS EUROPEAN ALLIES TURNED THEIR ATTENTIONS TO GETTING THE BOSNIAN SERBS TO SIGN THE SERBS HOWEVER WERE GRABBING MORE LAND AND RIDICULING THE PEACE AGREEMENT AT WASHINGTON'S URGING THE EUROPEANS AND THE RUSSIANS TOOK THEIR FIRST TENTATIVE AND SYMBOLIC STEP TOWARD MILITARY ACTION VOTING WITH THE UN SECURITY COUNCIL FOR MILITARY ENFORCEMENT OF A NOFLY ZONE AND AFTER THE SERBS LAUNCHED A NEW BRUTAL OFFENSIVE ON SREBRENICA THE LARGEST OF THE THREE REMAINING MUSLIM ENCLAVES LEFT IN EASTERN BOSNIA THE UN VOTED TO IMPOSE A NEW DRACONIAN SET OF ECONOMIC SANCTIONS ON SERBIA THE RECENT SURRENDER OF SREBRENICA WITH WRENCHING TELEVISION PICTURES OF REFUGEES TRAMPLING EACH OTHER TO GET ON EVACUATION BUSES PROVED TO BE A TURNING POINT IN WASHINGTON MR CLINTON AND TOP CONGRESSIONAL LEADERS HAVE BEGUN TO DISCUSS MILITARY OPTIONS INCLUDING AIR STRIKES AND A LIFTING OF THE ARMS EMBARGO IN HIS DISCUSSIONS MR CLINTON KEEPS COMING BACK TO TWO CRITICAL QUESTIONS WILL A SUCCESSFUL AMERICAN INTERVENTION DISCOURAGE SIMILAR TRAGEDIES FROM HAPPENING ELSEWHERE IN THE WORLD AND WHAT COST WILL THERE BE IF AN AMERICAN INTERVENTION FAILS AS EVER IN BOSNIA THERE ARE NO EASY ANSWERS AND THE DEFIANT MOOD AMONG THE BOSNIAN SERBS PERSISTS THERE IS A SERBIAN SAYING IT IS BETTER TO DIE A HERO AND AN HONEST MAN THAN TO DIE A COWARD SAYS MR GOJKOVIC THE ARTILLERY MAN AS HE RETURNS TO THE SIEGE OF SREBRENICA AND WE'RE GOING TO CHOOSE THE HONORABLE WAY TO DIE IF NECESSARY IN ZVORNIK MAYOR GRUJIC KEEPS AN EYE OUT FOR WESTERN PLANES AMERICA HE SAYS WON'T WIN THIS WAR 9304300049 930430 CREDIT MARKETS BOND PRICES BREAK FIVEDAY SLUMP ON REPORT THAT ECONOMY IS GROWING AT VERY SLOW PACE BY CONSTANCE MITHCELL AND ALAN YONAN JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK BOND PRICES BROKE OUT OF A FIVEDAY SLUMP AND MOVED MODERATELY HIGHER YESTERDAY AFTER THE GOVERNMENT REPORTED THAT THE ECONOMY IS ADVANCING AT A VERY SLOW PACE THE BOND MARKET'S BENCHMARK SECURITY THE 30YEAR TREASURY BOND ENDED AT 103 1/32 UP NEARLY 1/2 POINT OR NEARLY 5 FOR A BOND WITH A 1000 FACE AMOUNT YESTERDAY'S ADVANCE WAS THE FIRST RISE IN THE PRICE OF THE BELLWETHER BOND SINCE WEDNESDAY OF LAST WEEK THE YIELD ON THE BENCHMARK BOND ENDED YESTERDAY AT 688 DOWN FROM 691 ON WEDNESDAY YESTERDAY'S RALLY WAS TRIGGERED BY THE COMMERCE DEPARTMENT'S LATEST REPORT ON GROSS DOMESTIC PRODUCT THE REPORT SHOWED THAT GDP THE VALUE OF GOODS AND SERVICES PRODUCED IN THE US INCREASED AT AN ANNUAL RATE OF 18 IN THE FIRST QUARTER OF 1993 THAT WAS WELL BELOW THE IMPRESSIVE 47 JUMP IN THE FOURTH QUARTER OF 1992 AND THE LATEST SIGN THAT THE ECONOMIC RECOVERY MAY BE FALTERING THE DATA WERE CONSIDERABLY WEAKER THAN SOME INVESTORS HAD EXPECTED SAID WILLIAM SULLIVAN DIRECTOR OF MONEY MARKET RESEARCH AT DEAN WITTER REYNOLDS INC HE SAID THE REPORT PROMPTED INVESTORS TO JUMP BACK INTO THE BOND MARKET AND ENABLED BOND DEALERS TO REDUCE THEIR INVENTORIES OF THE RECENTLY AUCTIONED TWOYEAR AND FIVEYEAR TREASURY NOTES THERE IS NO DOUBT ABOUT IT INVESTORS PUT SOME MONEY BACK TO WORK SAID MR SULLIVAN WEAK ECONOMIC NEWS IS OFTEN GREETED BULLISHLY BY BOND INVESTORS BECAUSE THEY ASSUME THAT LOW GROWTH WILL KEEP INFLATION IN CHECK AND INTEREST RATES FROM RISING MEANWHILE TREASURY OFFICIALS SAID YESTERDAY THAT THE DEPARTMENT'S INAUGURAL RUN OF A COMPUTERIZED BIDDING SYSTEM FOR GOVERNMENT SECURITIES SHAVED 15 MINUTES OFF THE PROCESSING TIME OF YESTERDAY'S 52WEEK BILL AUCTION MARCUS PAGE A DEPUTY ASSISTANT SECRETARY AT THE TREASURY SAID THE AGENCY WAS HAPPY WITH THE RESULTS THE TREASURY AND THE FEDERAL RESERVE BANK OF NEW YORK SAID THEY HAVE TESTED THE NEW SYSTEM FOR THE PAST SIX MONTHS AND BELIEVE THAT THE SYSTEM WORKS SMOOTHLY HOWEVER THE GENERAL ACCOUNTING OFFICE DOESN'T SHARE THAT VIEW ON WEDNESDAY THE GAO WHICH IS THE INVESTIGATIVE ARM OF CONGRESS CRITICIZED THE AUTOMATED BIDDING SYSTEM SAYING IT WAS FLAWED AND COULD IMPAIR MARKET INTEGRITY NEVERTHELESS THE TREASURY PLANS TO KEEP USING THE NEW SYSTEM THE TREASURY SAID THAT 35 PRIMARY DEALERS OF GOVERNMENT SECURITIES WERE APPROVED TO USE THE NEW TREASURY AUTOMATED AUCTION PROCESSING SYSTEM AND THAT 34 DEALERS USED IT TO PLACE COMPETITIVE BIDS AND 20 USED THE SYSTEM TO PLACE NONCOMPETITIVE BIDS THE NEW SYSTEM WAS MADE AVAILABLE TO ALL 38 PRIMARY DEALERS BUT THREE OPTED TO USE THE TRADITIONAL METHOD OF SUBMITTING BIDS ON PAPER PRIMARY DEALERS ARE BROKERAGE FIRMS AND COMMERCIAL BANKS AUTHORIZED TO BUY AND SELL SECURITIES IN DIRECT DEALINGS WITH THE FEDERAL RESERVE THE GROUP GENERALLY BUYS THE VAST MAJORITY OF ALL GOVERNMENT BILLS NOTES AND BONDS AUCTIONED BY THE TREASURY ONE GOAL OF THE AUTOMATED AUCTION SYSTEM WAS TO REDUCE THE TIME THAT DEALERS MUST WAIT TO RECEIVE AUCTION RESULTS AFTER ALL BIDS HAVE BEEN SUBMITTED WE HAD HOPED IT WOULD SPEED UP THE AUCTION RELEASE PROCESS WHICH SO FAR IT HAS DONE AS A LARGER NUMBER OF USERS COME ON WE HOPE IT WILL IMPROVE THE TIME FURTHER SAID MR PAGE THE TREASURY SOLD 1434 BILLION OF 52WEEK BILLS AT YESTERDAY'S AUCTION AT AN AVERAGE DISCOUNT RATE OF 313 HERE ARE DETAILS OF THE AUCTION RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR THE BILLS ARE DATED MAY 6 AND MATURE MAY 5 1994 PRICES OF CORPORATE BONDS ROSE MODESTLY ON THE WEAKERTHANEXPECTED GROSS DOMESTIC PRODUCT REPORT AS INTEREST RATES ENDED LOWER FOR THE FIRST TIME IN A WEEK MOST INVESTMENTGRADE ISSUES GAINED 1/8 TO 1/4 POINT IN LIGHT VOLUME ALTHOUGH INTEREST RATES DECLINED MANY CORPORATE BORROWERS CONTINUE TO DEFER PLANS TO RAISE NEW DEBT SYNDICATE OFFICIALS SAID HOWEVER TELECOMMUNICATIONS CONCERN GTE CORP PRICED A 500 MILLION ISSUE OF 30YEAR DEBENTURES TO STRONG INVESTOR DEMAND UTILITIES WERE ALSO ACTIVE YESTERDAY INCLUDING EASTERN EDISON CO A UNIT OF EASTERN UTILITIES ASSOCIATES AND UNION ELECTRIC CO SEPARATELY A NEW STUDY BY FITCH INVESTORS SERVICE INC PREDICTS THAT THE NEARLY 050 PERCENTAGE POINT DROP IN INTEREST RATES IN THE FIRST QUARTER WILL SPUR COMPANIES TO REFINANCE A SIGNIFICANTLY LARGER PORTION OF THEIR OUTSTANDING DEBT THAN HAD BEEN INDICATED IN AN EARLIER FITCH STUDY THE STUDIES RELY ON A MODEL THAT CHARTS UNDER DIFFERENT INTERESTRATE HORIZONS THE POTENTIAL CASHFLOW SAVINGS TO BORROWERS THAT WOULD BE ACHIEVED BY REFINANCING THEIR OUTSTANDING DEBT COMPARED TO THE COST OF EXERCISING THAT OPTION FITCH SAID THE STEEP DROP IN BORROWING COSTS THAT OCCURRED IN THE FIRST THREE MONTHS OF THE YEAR WILL RESULT IN A 60 INCREASE FROM THEIR EARLIER ESTIMATE IN THE AMOUNT OF CORPORATE INVESTMENTGRADE DEBT THAT WILL BE CALLED OR REFUNDED IN THE LAST THREE QUARTERS OF 1993 PRICES OF MUNICIPAL BONDS FINISHED HIGHER IN QUIET TRADING HELPED BY THE NEWS OF THE UNEXPECTEDLY WEAK GROSS DOMESTIC PRODUCT DATA FOR THE FIRST QUARTER TAXEXEMPT MUNICIPAL BONDS FIRMED WITH TREASURYS IN EARLY TRADING AND REMAINED STRONG THROUGHOUT THE SESSION THE DAY'S BIG GAINERS INCLUDED THE JACKSONVILLE FLA ELECTRIC AUTHORITY'S 550 REVENUE REFUNDING BONDS OF 2013 WHICH CLOSED 5/8 HIGHER AT 97 3/8 TO YIELD 567 CONTINUING DEMAND FOR REALESTATE MORTGAGE INVESTMENT CONDUIT COLLATERAL AND A LESSENED PACE OF SELLING BY MORTGAGE BANKERS CONTINUED TO UNDERPIN MORTGAGE SECURITIES ANOTHER 1 BILLION IN REMIC SECURITIES WERE ANNOUNCED YESTERDAY BRINGING THE WEEK'S ANNOUNCED AGENCY ISSUANCE TO ABOUT 45 BILLION ALSO FANNIE MAE INCREASED THE SIZE OF ITS STRIPS TRUST 221 BY A HEFTY 14 BILLION PULLING ITS TOTAL TO 406 BILLION A RECORD FOR A STRIPS TRUST OFFERING FURTHER STEEPENING OF THE TREASURY YIELD CURVE PROMOTES REMIC CREATION TRADERS NOTE THE SPREAD OF YIELDS ON 30YEAR TREASURY BONDS ABOVE TWOYEAR TREASURY NOTES WIDENED BY 007 PERCENTAGE POINT YESTERDAY TO 310 PERCENTAGE POINTS COMPARED WITH 295 PERCENTAGE POINTS JUST ONE MONTH AGO BECAUSE MANY REMIC CLASSES ARE TIED TO SHORTTERM TREASURYS THE LOW YIELDS ON THOSE SECURITIES RELATIVE TO LONGERDATED ISSUES PROVIDE AN INCENTIVE TO UNDERWRITE NEW REMICS 9304300048 930430 ECONOMY COMPTROLLER OF CURRENCY URGES EASING OF OVERLY RESTRICTIVE' RULES FOR LOANS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON EUGENE LUDWIG THE NEW COMPTROLLER OF THE CURRENCY TOLD BANK EXAMINERS TO EASE OVERLY RESTRICTIVE REGULATION IN AN EFFORT TO SPUR MORE BANK LENDING IN A MEMORANDUM SENT TO THE 3300 PEOPLE WHO EXAMINE THE SAFETY AND SOUNDNESS OF NATIONAL BANKS MR LUDWIG SAID IT'S TIME TO CHANGE THE EMPHASIS NOW THAT THE BANKING CRISIS IS PAST THOUGH TOUGH REGULATION WAS NECESSARY TO STANCH THE EARLIER WAVE OF BANK FAILURES HE ASSERTED CREDIT AVAILABILITY PARTICULARLY TO SMALL AND MEDIUMSIZED BUSINESS IS ONE OF THE CRITICAL ELEMENTS IN A STRONG ECONOMIC RECOVERY LAST MONTH PRESIDENT CLINTON AND THE FOUR BANK REGULATORY AGENCIES ANNOUNCED A PROGRAM TO ENCOURAGE LENDING PARTICULARLY TO SMALL BUSINESS THE PROGRAM AMONG OTHER THINGS ALLOWS STRONG BANKS TO REDUCE THE PAPERWORK CURRENTLY REQUIRED FOR LOANS TO SMALL BUSINESSES BUT BANKERS HAVE SAID THAT THE NEW RULES WON'T WORK UNTIL BANK EXAMINERS BACK AWAY FROM THEIR TENDENCY TO APPLY CONSERVATIVE STANDARDS TO ALL LOANS AT THE HEARING MR LUDWIG ALSO SAID THAT HE PLANS TO MAKE IT EASIER AND SAFER FOR BANKS TO APPEAL ADVERSE REGULATORY JUDGMENTS ABOUT ASSET QUALITY AND LOAN RESERVES HE SAID HE PLANS TO APPOINT AN OFFICIAL WHO WOULD REPORT DIRECTLY TO HIM TO OVERSEE THE APPEALS PROCESS BANKS HAVE COMPLAINED THEY FEAR RETALIATION FOR APPEALING EXAMINER RULINGS ONE OFFICIAL SAID MR LUDWIG'S MESSAGE TO EXAMINERS WAS SIGNIFICANTLY DIFFERENT FROM OTHER RECENT AGENCY AND ADMINISTRATION EFFORTS TO ENCOURAGE LENDING BECAUSE THE COMPTROLLER SAID IN THE MEMO I TAKE FULL RESPONSIBILITY FOR THE CHANGES THAT ARE BEING EFFECTED BY THIS PROGRAM IF THERE IS CRITICISM OF THE PROGRAM IT IS MY JOB TO BEAR THE BRUNT OF THIS CRITICISM SEVERAL TIMES OVER THE PAST 10 YEARS EXAMINERS HAVE BEEN HAULED BEFORE CONGRESSIONAL COMMITTEES AND EXCORIATED FOR ALLOWING BANKS TO FAIL AS A RESULT BANKERS COMPLAIN EXAMINERS HAVE BECOME ADVERSE TO ANY RISK AND HAVE ADOPTED AN AVOIDFAILUREATANYCOST APPROACH DURING THE PAST DECADE OF PROBLEM LOANS TO DEVELOPING COUNTRIES THE OIL PATCH THE FARM BELT AND COMMERCIAL REAL ESTATE REGULATORS HAVE FOCUSED MAINLY ON PREVENTING BANK FAILURES IN THIS CLIMATE MR LUDWIG SAID IT HAS BEEN TOO EASY FOR BANKERS AND EXAMINERS ALIKE TO FALL INTO THE TRAP OF SUBSTITUTING RIGID PRODCEDURES AND REVIEWS FOR GOOD JUDGMENT IN ASSESSING RISK AND STRENGTH OF LOANS HE ADDED A FUNDAMENTAL GOAL OF THE PRESIDENT'S PROGRAM ON CREDIT AVAILABILITY IS TO FREE BOTH BANKERS AND EXAMINERS FROM THIS TRAP THE COMPTROLLER OF THE CURRENCY REGULATES ABOUT 3400 NATIONAL BANKS INCLUDING MOST OF THE NATION'S LARGEST DURING YESTERDAY'S HEARING ANDREW HOVE ACTING CHAIRMAN OF THE FEDERAL DEPOSIT INSURANCE CORP POINTED OUT THAT BANKS ARE WELLPOSITIONED TO LEND BECAUSE THEY ARE HIGHLY PROFITABLE AND WELLCAPITALIZED HE NOTED THAT 96 OF THE NATION'S BANKS ARE WELLCAPITALIZED THE GOVERNMENT'S TOP CATEGORY FOR REGULATORY PURPOSES MR HOVE SAID THE WELLCAPITALIZED BANKS COULD INCREASE THEIR ASSETS INCLUDING LOANS BY A TOTAL OF 500 BILLION WITHOUT JEOPARDIZING THE TOP CAPITAL RATING 9304300047 930430 JC PENNEY PLANS REDEMPTION DALLAS JC PENNEY CO SAID IT WILL REDEEM ON JUNE 3 350 MILLION AGGREGATE PRINCIPAL AMOUNT OF 9375 AND 9 ISSUES OF ITS OUTSTANDING SINKING FUND DEBENTURES DUE 2016 9304300046 930430 WHAT'S NEWS WORLDWIDE BOSNIA TALKS WERE SCHEDULED TO RECONVENE IN GREECE THIS WEEKEND A UN ANNOUNCEMENT ON BEHALF OF MEDIATORS VANCE AND OWEN SAID THE DECISION TO REOPEN THE TALKS WAS INFLUENCED BY THE BOSNIAN SERBS' PLEDGE TO RECONSIDER A UN PEACE PLAN EARLIER IN THE DAY THE BOSNIAN SERBS SAID THEIR LEGISLATURE WOULD MEET ON WEDNESDAY TO REEXAMINE THE PLAN IT REJECTED THIS WEEK A SPOKESMAN FOR THE INTERNATIONAL MEDIATORS SAID MUSLIMS CROATS AND SERBS ALL HAD ACCEPTED THE OFFER TO MEET TOMORROW AND SUNDAY IN ATHENS CLINTON STUDIED US OPTIONS WITH TOP MILITARY ADVISERS AND VOICED SKEPTICISM ABOUT THE ATHENS MEETING SAYING THE BOSNIAN SERBS HAVE SAID THINGS BEFORE AND NOT MEANT IT YELTSIN LAUNCHED HIS ENDRUN STRATEGY FOR PASSING A NEW RUSSIAN CONSTITUTION AND ABOLISHING THE PARLIAMENT AS ECONOMISTS SAID THE NATION'S ECONOMIC DECLINE SHOWED SIGNS OF BOTTOMING OUT AT A MEETING WITH LEADERS OF RUSSIA'S 88 REGIONS HE DISTRIBUTED HIS DRAFT CONSTITUTION AND REQUESTED COMMENTS THE HOUSE APPROVED AND SENT TO THE SENATE A MEASURE BACKED BY CLINTON TO SLIGHTLY STRENGTHEN HIS ABILITY TO KILL INDIVIDUAL ITEMS IN SPENDING BILLS BEFORE ADOPTING THE MEASURE 258157 THE HOUSE VOTED DOWN A GOP ALTERNATIVE ARABISRAELI TALKS BOGGED DOWN AND SYRIA SAID ITS DELEGATION WOULD LEAVE WASHINGTON IF THERE WAS NO PROGRESS NEXT WEEK IN THE NEGOTIATIONS WHICH RESUMED TUESDAY AFTER A FOURMONTH SUSPENSION IN JORDAN KING HUSSEIN SAID HE WAS ENCOURAGED BY A MORE ACTIVE US ROLE IN THE TALKS BUT WOULDN'T PREDICT A BREAKTHROUGH THIS YEAR US AIDS CASES INCREASED AT A HIGHERTHANEXPECTED RATE IN THE FIRST THREE MONTHS OF 1993 WHEN OVER 35000 NEW CASES WERE REPORTED HEALTH OFFICIALS SAID MOST OF THE NEW CASES STEMMED FROM A NEW DEFINITION OF THE DISEASE BUT EVEN CASES NOT ATTRIBUTED TO THE BROADER DEFINITION ROSE BY 21 DOUBLE THE RATE FOR THE PERIOD LAST YEAR ITALY'S HOURSOLD GOVERNMENT APPEARED HEADED FOR COLLAPSE AFTER FOUR OF PREMIER CIAMPI'S MINISTERS QUIT IN PROTEST AT A PARLIAMENTARY DECISION TO PRESERVE EXPREMIER CRAXI'S IMMUNITY FROM CORRUPTION CHARGES THE FORMER COMMUNISTS PULLED THREE MINISTERS OUT OF THE CABINET AND THE GREEN PARTY ENVIRONMENT MINISTER QUIT GUNMEN IN COSTA RICA WERE ARRESTED AFTER THEY RELEASED 18 SUPREME COURT JUSTICES AND FIVE COURT ASSISTANTS PEACEFULLY ENDING A FOURDAY STANDOFF COSTA RICA'S SECURITY MINISTER SAID ALL THE HOSTAGES HAD BEEN FREED AND THE FIVE GUNMEN WERE CAPTURED AFTER A BRIEF GUN BATTLE WITH POLICE NEAR SAN JOSE'S AIRPORT MILITARY ADMINISTRATORS BEGAN DISCHARGE PROCEEDINGS IN SAN FRANCISCO AGAINST THE 6TH ARMY'S 1992 SOLDIER OF THE YEAR FOR HIS ANNOUNCEMENT LAST WEEKEND THAT HE IS A HOMOSEXUAL SGT JOSE ZUNIGA WHO VIOLATED THE MILITARY'S BAN ON HOMOSEXUALS COULD BE PUT ON STANDBY RESERVE UNTIL JULY 15 WHEN CLINTON IS EXPECTED TO ISSUE A NEW POLICY A US JUDGE RULED IN WASHINGTON THAT FEDERAL SENTENCING GUIDELINES MANDATED BY CONGRESS NEARLY A DECADE AGO ARE UNCONSTITUTIONAL IN REFUSING TO SENTENCE A 25YEAROLD REPEAT DRUG OFFENDER TO A 30YEAR PRISON TERM US DISTRICT JUDGE HAROLD GREENE CONTENDED THAT THE GUIDELINES ARE PRODUCING UNJUST SENTENCES ALABAMA GOV FOLSOM ANNOUNCED HE WON'T RESTORE THE CONFEDERATE BATTLE FLAG TO THE STATE CAPITOL DOME BUT PLANS TO FLY IT ACROSS THE STREET AT THE FIRST WHITE HOUSE OF THE CONFEDERACY THE BATTLE FLAG FLEW ATOP THE DOME ALONG WITH THE US AND STATE FLAGS UNTIL APRIL 1992 WHEN THEY WERE TAKEN DOWN DURING RENOVATION WORK SOUTH AFRICA'S PRESIDENT SAID HE CONSIDERED THE AFRICAN NATIONAL CONGRESS TOO POLITICALLY INEXPERIENCED TO GOVERN THE COUNTRY ALONE HOWEVER DE KLERK SAID ANC LEADER MANDELA POSSESSED PRESIDENTIAL QUALITIES AND ALSO APOLOIZED FOR HIS PARTY'S IMPOSITION OF APARTHEID OVER 40 YEARS AGO NEVADA OFFICIALS ACCUSED THE ENERGY DEPARTMENT OF UNDERSTATING THE RISKS OF SHIPPING THOUSANDS OF TONS OF HIGHLEVEL NUCLEAR WASTE ACROSS THE COUNTRY TO A PROPOSED NEVADA STORAGE SITE THE STATE IS SEEKING TO BLOCK THE PLANNED STORAGE SITE 100 MILES NORTHWEST OF LAS VEGAS WHICH THE GOVERNMENT WOULD LIKE TO OPEN BY THE YEAR 2010 9304300045 930430 MUTUAL FUNDS STOCK FUNDS TAKE IN RECORD 113 BILLION BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE RUSH INTO STOCK MUTUAL FUNDS TURNED INTO A STAMPEDE LAST MONTH AS INVESTORS POURED AN ASTOUNDING 113 BILLION INTO THE FUNDS MARCH'S HUGE STOCKFUND INFLOW EASILY SURPASSED THE PRIOR RECORD OF 102 BILLION WHICH WAS SET IN JANUARY FUND COMPANIES SAY THE PACE OF SALES SHOWS NO SIGNS OF SLACKENING OFF IN APRIL WE'VE HAD THE SECOND STRONGEST MONTH WE'VE HAD IN THE LAST COUPLE OF YEARS LED BY A CONTINUED DESIRE BY RETIREMENT INVESTORS TO BUY STOCK FUNDS OF ALL TYPES SAYS MICHAEL HINES A SENIOR VICE PRESIDENT WITH FIDELITY INVESTMENTS THE COUNTRY'S LARGEST MUTUALFUND GROUP BOND FUNDS MEANWHILE PULLED IN 85 BILLION IN NEW CASH DURING MARCH DOWN FROM 107 BILLION IN FEBRUARY THE STOCKFUND BUYING BINGE COULD HELP PUSH STOCK PRICES HIGHER AS FUND MANAGERS TAKE THE NEW CASH AND PUT IT TO WORK IN THE STOCK MARKET AT THE END OF MARCH STOCK FUNDS WERE SITTING ON 522 BILLION IN CASH EQUAL TO 99 OF STOCKFUND ASSETS STOCKFUND MANAGERS HAVE BEEN BOOSTING THEIR CASH HOLDINGS SINCE JANUARY WHEN CASH STOOD AT 89 OF ASSETS WHILE THAT INDICATES THAT MANAGERS MAY BE NERVOUS ABOUT THE STOCK MARKET IT ALSO MEANS STOCK FUNDS ARE HOLDING A LOT OF CASH THAT SHOULD EVENTUALLY BE USED TO BUY STOCKS BIRINYI ASSOCIATES A NEW YORK MARKET RESEARCH FIRM CALCULATES THAT STOCKFUND CASH RESERVES ARE EQUAL TO 64 DAYS OF NEW YORK STOCK EXCHANGE TRADING INVESTORS' LATEST RUSH INTO STOCK FUNDS IS PARTLY EXPLAINED BY THEIR DESIRE TO FUND INDIVIDUAL RETIREMENT ACCOUNTS BEFORE THE APRIL 15 TAX FILING DEADLINE YOU'RE BEGINNING TO SEE PEOPLE BUY IRAS AGAIN BOTH BECAUSE OF THE PROPOSED INCREASED TAX RATE AND THE CONCERNS ABOUT RETIREMENT SAYS WILLIAM SHIEBLER A SENIOR MANAGING DIRECTOR AT PUTNAM INVESTMENTS WHILE FUNDS THAT BUY US STOCKS CONTINUE TO GET THE BULK OF THE NEW MONEY COMING INTO STOCK FUNDS FUND GROUPS REPORT A RECENT SURGE IN SALES OF FOREIGNSTOCK FUNDS FOREIGN FUNDS ARE AMONG 1993'S HOTTEST MUTUALFUND PERFORMERS WITH FOREIGNSTOCK FUNDS SOARING AN AVERAGE 13 SO FAR THIS YEAR AND MANY INTERNATIONAL BOND FUNDS CLIMBING 6 AND MORE THE RENEWED INTEREST IN FOREIGN FUNDS IS APPARENT ACROSS THE FUND INDUSTRY THIS MONTH DENVER'S INVESCO FUNDS GROUP REPORTS BIG INFLOWS INTO ITS PACIFIC BASIN FUND KEMPER CORP SAYS SALES OF ITS KEMPER INTERNATIONAL FUND MORE THAN DOUBLED IN APRIL FIDELITY STATE STREET RESEARCH & MANAGEMENT STRONG FUNDS TNE FUND GROUP AND VANGUARD GROUP ALSO REPORT SHARP SALES INCREASES FOR THEIR FOREIGNSTOCK FUNDS PEOPLE ARE DEFINITELY RESPONDING TO THE WEAKNESS IN THE DOLLAR AND THE GOOD PERFORMANCE OF FOREIGN MARKETS SAYS STEVE NORWITZ A VICE PRESIDENT WITH T ROWE PRICE ASSOCIATES HE SAYS HIS FUND GROUP'S BESTSELLING STOCK FUND SO FAR IN APRIL HAS BEEN T ROWE PRICE INTERNATIONAL STOCK FUND WHILE T ROWE PRICE INTERNATIONAL BOND FUND HAS RANKED AS THE COMPANY'S MOST POPULAR BOND FUND SMALLCOMPANY STOCK FUNDS CONTINUE TO ATTRACT A LOT OF MONEY PROMPTING SOME FUNDS TO CLOSE THEIR DOORS TO NEW INVESTORS THE LATEST CLOSING WAS ANNOUNCED YESTERDAY THE 12 BILLION PENNSYLVANIA MUTUAL FUND MANAGED BY RENOWNED STOCKPICKER CHARLES ROYCE SAYS IT WILL CLOSE TO NEW INVESTORS ON MAY 28 MARCH'S HUGE FLOOD OF CASH INTO STOCK FUNDS FOLLOWED SALES OF 87 BILLION IN FEBRUARY BRINGING THE YEARTODATE TOTAL TO 302 BILLION MEANWHILE MUCH OF THE SLOWDOWN IN BONDFUND SALES WAS DUE TO A SLUMP IN SALES OF MUNICIPALBOND FUNDS WHICH FELL TO 29 BILLION IN MARCH FROM 45 BILLION IN FEBRUARY SALES OF TAXABLE BOND FUNDS HOWEVER REMAINED ROBUST HIGHYIELD JUNKBOND FUNDS WERE PARTICULARLY STRONG SELLERS ATTRACTING 11 BILLION DURING MARCH THE FIGURES WHICH COME FROM THE INVESTMENT COMPANY INSTITUTE INCLUDE MUTUALFUND SALES LESS REDEMPTIONS PLUS THE NET RESULT OF EXCHANGES BETWEEN FUNDS IN THE SAME MUTUALFUND COMPANY REINVESTED DIVIDENDS ARE EXCLUDED FINAL NUMBERS FOR APRIL'S SALES WON'T BE RELEASED BY THE INVESTMENT COMPANY INSTITUTE UNTIL LATE MAY BUT THERE ARE SIGNS THAT APRIL WILL BE A BLOCKBUSTER MONTH STOCKFUND SALES THIS MONTH ARE RUNNING AT ABOUT MARCH'S PACE WHILE BONDFUND SALES ARE HIGHER ACCORDING TO AMG DATA SERVICES AN ARCATA CALIF RESEARCH FIRM THAT TRACKS THE FLOW OF MONEY INTO MUTUAL FUNDS ON A WEEKLY BASIS OUR APRIL SALES NUMBERS ARE EXTREMELY STRONG SAYS ROBERT LEO DIRECTOR OF MUTUAL FUNDS AT SHEARSON LEHMAN BROTHERS A UNIT OF AMERICAN EXPRESS CO THE NUMBER ONE ITEM THAT'S REALLY DRIVING THIS IS THE CONSUMER LOOKING TO REDUCE TAXES THERE ARE STRONG SALES OF MUNICIPAL BONDS BUT THE OTHER PART IS IRAS WE'RE SEEING AN OUTRAGEOUS AMOUNT OF MONEY COMING INTO IRAS 9304300044 930430 BUSINESS BRIEF COMPUTERVISION CORP NARROWED 104 MILLION LOSS POSTED FOR FISCAL 1ST QUARTER COMPUTERVISION CORP CITING TRANSITIONAL DIFFICULTIES SWITCHING FROM A COMPUTER HARDWARE TO SOFTWARE COMPANY AND A POOR EUROPEAN ECONOMY REPORTED A NARROWED 104 MILLION LOSS FOR ITS FISCAL FIRST QUARTER ENDED APRIL 4 THE LOSS EQUAL TO 22 CENTS A SHARE COMPARES WITH A LOSS OF 261 MILLION IT POSTED IN THE YEARAGO QUARTER WHICH INCLUDED A 31 MILLION LOSS FROM ITS DISCONTINUED COMPUTER SYSTEMS BUSINESS UNIT ANALYSTS HAD BEEN EXPECTING A FIRSTQUARTER LOSS OF 8 MILLION TO 10 MILLION REVENUE DECLINED 19 TO 2209 MILLION FROM 2738 MILLION A YEAR AGO COMPUTERVISION BASED IN BEDFORD MASS SAID REVENUE FROM THE MAIN PART OF ITS BUSINESS ENGINEERING DESIGN SYSTEMS KNOWN AS CAD/CAM FELL 27 TO 1475 MILLION FROM 2002 MILLION A YEAR AGO WHILE REVENUE FROM THE REST OF ITS BUSINESS REMAINED ABOUT THE SAME THE COMPANY PREVIOUSLY NAMED PRIME COMPUTER BLAMED ADVERSE ECONOMIC CONDITIONS IN EUROPE AND JAPAN AND CONTINUED WEAKNESS IN THE WORLDWIDE AUTOMOTIVE AND AEROSPACE INDUSTRIES FOR PART OF ITS PROBLEMS THE COMPANY ALSO NOTED THAT A HIGHLY COMPETITIVE WORKSTATION MARKET KEPT PROFIT MARGINS DOWN LIKE OTHER COMPANIES THAT DO SUBSTANTIAL BUSINESS IN EUROPE TOUGH ECONOMIC CONDITIONS ARE HAMPERING OUR REVENUE GROWTH AND I DO NOT SEE ANY RELIEF IN 1993 SAID RUSSELL E PLANITZER CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9304300043 930430 ESPN IS READY TO SCORE RUNS IN TV IN ASIA US SPORTS NETWORK AIMS TO LEAD MARKET BUT HAS A RIVAL IN PRIME SPORTS BY SALLY D GOLL STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG ESPN IS THE WORLD'S BIGGEST PRODUCER OF SPORTS PROGRAMMING BUT BY PASSING ON THE CHANCE TO BECOME ONE OF THE FIVE ORIGINAL CHANNELS ON STAR TV ASIA'S FIRST PANREGIONAL SATELLITE SERVICE IT CEDED VALUABLE REGIONAL AIR TIME AND REACH TO ITS RIVAL USBASED PRIME SPORTS NOW ESPN IS FIGHTING BACK BY WORKING TO BEEF UP ITS ASIAN PROGRAM OFFERINGS AND EXPAND DISTRIBUTION OUR OBJECTIVE IS TO BECOME AN ASIAN SERVICE NOT AN AMERICAN EXPORT SERVICE SAYS ANDREW BRILLIANT SENIOR VICE PRESIDENT AND GENERAL MANAGER OF ESPN INTERNATIONAL THE NETWORK'S INTERNATIONAL PROGRAMMING AND DISTRIBUTION ARM WE WANT TO BUILD FROM THE GRASS ROOTS UP THE NETWORK FACES A VARIETY OF HURDLES IN THE RACE FOR ASIAN DOMINANCE HOWEVER THE BIRTH OF REGIONAL SATELLITE TELEVISION HAS PRIMED THE MARKET FOR AN EXPLOSION OF NEW CABLE AND SATELLITE OPERATORS WITH COMPETITION ACROSS ALL PROGRAMMING CATEGORIES GROWING INTENSE SPECIFICALLY PRIME SPORTS' STAR TV CONNECTION PROVIDES A POTENTIAL AUDIENCE THAT THE NETWORK SAYS IS ALREADY WELL IN THE MILLIONS AS A SUBSCRIPTION SERVICE ESPN'S TASK IS MADE MORE DIFFICULT BY REGULATORY HURDLES AND THE COMPLEXITY OF THE ASIAPACIFIC MARKET AS A FREETOAIR OPERATION WHOSE BROADCASTS CAN BE RECEIVED BY ANYONE WITH A SATELLITE DISH STAR TV HAS BEEN ABLE TO AVOID MOST OF THE OBSTACLES ESPN FACES ESPN WHICH IS 80OWNED BY NEW YORKBASED MEDIA GIANT CAPITAL CITIES/ABC INC HOPES TO MEET THESE CHALLENGES THROUGH SEVERAL STEPS OPENING ITS OWN ASIAN PRODUCTION STUDIO IN 18 TO 20 MONTHS PROBABLY IN HONG KONG ACQUIRING MATERIAL FROM AN EXPANDING NETWORK OF REGIONAL AFFILIATES AND SECURING THE RIGHTS TO BROADCAST ASIAN SPORTING EVENTS THE NETWORK'S ASIAN MOVES UNDERSCORE ITS CONTINUING EFFORTS TO EXPAND INTERNATIONAL SOURCES OF PROGRAMMING AND SEEK OUT NEW MARKETS FOR ITS PRODUCT WE HOPE TO BUILD A STRONG PRODUCTION BASE IN ASIA FROM WHICH WE CAN ALSO DISTRIBUTE ELSEWHERE MR BRILLIANT SAYS IN EUROPE ESPN OWNS A THIRD OF EUROSPORT A PANEUROPEAN SPORTS NETWORK IN LATIN AMERICA IT DISTRIBUTES ITS PROGRAMMING THROUGH A SERIES OF AGREEMENTS WITH LOCAL CABLE OPERATORS IN ASIA WHERE IT BEGAN BROADCASTING IN 1988 IT OWNS 20 OF JAPAN SPORTS CHANNEL AND IT HAS AN EQUITY STAKE OF LESS THAN 5 IN NEW ZEALAND'S SKY NETWORK SOURCES OF PRODUCT EACH REGION IN WHICH WE DISTRIBUTE BECOMES NOT ONLY AN OUTLET BUT A SOURCE OF PRODUCT MR BRILLIANT NOTES IN STEPPING UP ITS ASIAN ACTIVITIES HOWEVER ESPN FACES POTENTIALLY STIFF COMPETITION FROM PRIME SPORTS ESPN HAS 600000 ASIAN SUBSCRIBERS ABOUT HALF OF WHOM LIVE IN JAPAN STAR TV SAYS ITS FIVECHANNEL PACKAGE INCLUDING PRIME SPORTS CAN BE VIEWED IN 115 MILLION ASIAN HOUSEHOLDS BUT A DIRECT COMPARISON IS IMPOSSIBLE PRIME SPORTS IS BROADCAST FREETOAIR TO AN AUDIENCE WHOSE VIEWING HABITS HAVE YET TO BE THOROUGHLY MEASURED WHILE ESPN CAN BE SEEN ONLY BY SUBSCRIPTION SUCH AS BY PURCHASING A DECODER WHEN USING A SATELLITE DISH OR BY CABLE THUS WHILE FREETOAIR PROVIDES BIGGER POTENTIAL AUDIENCE NUMBERS SUBSCRIPTION SERVICES USUALLY OFFER A MORE PRECISE NUMBER OF ACTUAL VIEWERS ESPN MAY HAVE ANOTHER EDGE WITH ITS FORMAT ADVERTISERSUPPORTED SATELLITE SERVICES CAN BE LAUNCHED FAIRLY QUICKLY AND AT MIMIMAL COST BUT THEY AREN'T KNOWN FOR THEIR PROFITABILITY SOME ADVERTISING EXECUTIVES SAY THEY DON'T BELIEVE THERE ARE ENOUGH ADVERTISING DOLLARS TO SUPPORT A SERVICE WITH AS BROAD A REACH AS STAR TV'S ON ITS OWN BY CONTRAST PAYTELEVISION SERVICES ONCE OPERATING ARE USUALLY LUCRATIVE STILL BUILDING A PROFITABLE PAYTV SERVICE IN A MARKET AS VAST AND VARIED AS ASIA COULD TAKE YEARS APART FROM NUMEROUS REGULATORY CHECKS MEANT TO KEEP FOREIGN BROADCASTERS OUT OF LOCAL MARKETS NETWORKS ARE FORCED TO STITCH TOGETHER DISTRIBUTION DEALS WITH BROADCASTERS AND CABLE OPERATORS ONE BY ONE ESPN HAS BEGUN THE PAINSTAKING PROCESS OF ASSEMBLING ASIAN DISTRIBUTORS IT RECENTLY REACHED AGREEMENTS IN PRINCIPAL TO DISTRIBUTE ITS PROGRAMMING THROUGH CHINESE CABLETV OPERATORS IN QINDAO AND NANJING WHICH WILL PULL IN ABOUT 100000 ADDITIONAL SUBSCRIBERS EACH IN HONG KONG IT IS NEARING AN AGREEMENT TO DISTRIBUTE THROUGH WHARF CABLE LTD WHICH PLANS TO LAUNCH ITS PAYTV SERVICE IN OCTOBER ESPN ALREADY HAS DISTRIBUTION DEALS WITH SKY TELEVISION IN THE PHILIPPINES IBC IN THAILAND BEIJING CABLE IN CHINA AND CABLE VISION IN SINGAPORE IN JAPAN IT IS REPRESENTED BY THE MITSUBISHI TRADING GROUP THE NETWORK'S SIGNAL IS DELIVERED TO ASIAN BROADCASTERS BY INDONESIA'S PALAPA B2P SATELLITE ESPN IS STILL NEGOTIATING WITH THE INDONESIAN GOVERNMENT TO BROADCAST THERE IN ANTICIPATION OF INCREASED REGIONAL SATELLITE CAPACITY THE NETWORK IS REVIEWING ITS OPTIONS WE WANT TO BE ON WHATEVER SATELLITE IS GOING TO GIVE US THE BEST POSSIBLE DISTRIBUTION AND THE HIGHESTPOWERED SIGNAL SAYS ALEXANDER P BROWN VICE PRESIDENT OF ESPN ASIA LTD 9304300042 930430 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 7/8 LOW 2 7/8 NEAR CLOSING BID 2 15/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 304 30 TO 59 DAYS 305 60 TO 89 DAYS 306 90 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 310 30 DAYS 311 60 DAYS 311 90 DAYS CERTIFICATES OF DEPOSIT 258 ONE MONTH 263 TWO MONTHS 266 THREE MONTHS 276 SIX MONTHS 293 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 305 ONE MONTH 306 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 9/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 6 GERMANY 850 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY 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 723 60 DAYS 734 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4125 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 722 60 DAYS 732 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 5 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 270 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9304300041 930430 CANADIAN STEEL OUTPUT ROSE IN LATEST WEEK OTTAWA CANADIAN STEEL PRODUCTION TOTALED 297504 METRIC TONS IN THE WEEK ENDED APRIL 24 UP 009 FROM 297237 TONS IN THE PRECEEDING WEEK AND UP 88 FROM 273363 TONS A YEAR EARLIER SAID STATISTICS CANADA A GOVERNMENT AGENCY A METRIC TON IS EQUAL TO ABOUT 220462 POUNDS THE CUMULATIVE TOTAL FOR 1993 AT APRIL 24 WAS 4480933 TONS UP 3 FROM 4351302 TONS A YEAR EARLIER 9304300040 930430 WHO'S NEWS AMERICAN BRANDS INC AMERICAN BRANDS INC OLD GREENWICH CONN STEVEN C MENDENHALL 44 YEARS OLD WAS NAMED VICE PRESIDENT AND CHIEF ADMINISTRATIVE OFFICER OF THE LIQUOR TOBACCO HARDWARE AND INSURANCE COMPANY EFFECTIVE JULY 1 HE SUCCEEDS ROBERT L AUSTIN 65 WHO IS RETIRING MR MENDENHALL HAD BEEN VICE PRESIDENT OF HUMAN RESOURCES 9304300039 930430 WHO'S NEWS LESLIE FAY COS LESLIE FAY COS NEW YORK PETER W MAY 50 YEARS OLD AND FAYE WATTLETON 50 WERE ELECTED TO THE BOARD OF THIS WOMEN'S APPAREL CONCERN INCREASING ITS SIZE TO 12 MR MAY A FINANCIER IS PRESIDENT AND CHIEF OPERATING OFFICER OF DWG CORP A HOLDING COMPANY FOR ARBY'S INC ROYAL CROWN COLA INC AND OTHER BUSINESSES MS WATTLETON IS A CHAIRWOMAN OF THE NEW YORK COMMISSION ON THE STATUS OF WOMEN AND A FORMER PRESIDENT OF PLANNED PARENTHOOD FEDERATION OF AMERICA 9304300038 930430 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY CLINTON COURTS SOME CONGRESSIONAL REPUBLICANS AND BLASTS OTHERS AIDES WOO MODERATE GOP SENS SPECTER HATFIELD AND JEFFORDS TO HELP SPONSOR A NEW STIMULUS PACKAGE THE GOAL TO INTRODUCE A BIPARTISAN BILL AND PASS IT ALONG WITH A RUSSIANAID MEASURE THAT MANY REPUBLICANS ALREADY BACK GOP MODERATES ARE ALSO TARGETED ON HEALTH CARE WITH A SPECIAL FOCUS ON RHODE ISLAND'S CHAFEE AND MINNESOTA'S DURENBERGER BUT DOLE AND GOP CONSERVATIVES BECOME TARGETS OF ATTACK STIRRED BY YESTERDAY'S DISAPPOINTING ECONOMICGROWTH FIGURES DEMOCRATS WILL ATTACK THEM AS OBSTRUCTIONISTS AND PAINT THE GOP LEADER AS A PRESIDENTIAL WANNABE WHO OPPOSES THE STIMULUS PACKAGE FOR POLITICAL GAIN WHILE SECRETLY SEEKING ITS GOODIES THEY GLOAT OVER A LETTER FROM DOLE TO HUD LAST MONTH IN WHICH HE SOUGHT FUNDING FOR A BOAT HOUSE IN WICHITA FROM ONE OF THE VERY PROGRAMS CLINTON WAS TRYING TO BOOST CLINTON TELLS BOSTON MAYOR FLYNN HE INTENDS TO TRAVEL MORE AND CAMPAIGN FOR HIS PROGRAMS DIRECTLY INVISIBLE MAN BENTSEN STAYS IN THE BACKGROUND DURING CLINTON'S STIMULUS FIGHT DESPITE HIS DESIGNATION AS CHIEF ECONOMIC SPOKESMAN THE TREASURY CHIEF A 22YEAR SENATE VETERAN WAS LITTLE INVOLVED IN THE FAILED BATTLE TO GET THE SPENDING BILL THROUGH THE SENATE HIS DEFENSE NO ONE ASKED FOR HIS HELP AND SPENDING BILLS AREN'T THE TREASURY'S TURF BUT LONGTIME BENTSEN WATCHERS NOTE THAT HE HAS BEEN KNOWN TO AVOID FIGHTS HE DOESN'T EXPECT TO WIN THE SECRETARY EXPECTS TO BE INVOLVED IF CLINTON TRIES A SECOND STIMULUS BILL AND TALKS TO MOYNIHAN AND ROSTENKOWSKI ON THE TAX BILL ONE GOAL TO SAVE AN INVESTMENTTAX CREDIT FOR SMALL FIRMS HE AND NATIONAL ECONOMIC COUNCIL CHAIRMAN RUBIN GET MORE ACTIVE ON HEALTH SERVING AS CONSERVATIVE CHECKS ON HEALTH CZAR IRA MAGAZINER SANCTIONS ON CHINA SEEM LIKELY NO MATTER WHAT CLINTON PROPOSES CONGRESSIONAL PROPOSALS GATHER STEAM TO WITHHOLD NORMAL TRADING STATUS FROM CHINA BECAUSE OF ABUSES IN TIBET AND TO IMPOSE STRICTER MONITORING ON WHETHER EXPORTED GOODS ARE MADE BY PRISON LABOR HOUSE FOREIGN AFFAIRS CHAIRMAN HAMILTON COMPLAINS CLINTON HASN'T MOVED QUICKLY ENOUGH TO HEAD OFF PUNITIVE CONGRESSIONAL EFFORTS THAT COULD RUPTURE USSINO RELATIONS BUT ALTHOUGH THE ADMINISTRATION HAS BEGUN TALKS WITH CAPITOL HILL A SENIOR AIDE SAYS DECISIONS ON WHAT CLINTON WANTS WON'T BE MADE UNTIL MIDMAY MEANWHILE THE AMERICAN CHAMBER OF COMMERCE IN HONG KONG SCHEDULES 85 MEETINGS TO LOBBY LAWMAKERS AND ADMINISTRATION OFFICIALS THE GROUP SAYS CLINTON MULLS SOME CONDITIONS THAT BEIJING PROBABLY COULD ACCEPT SUCH AS REQUIRING IT TO ALLOW RED CROSS VISITS TO CERTAIN PRISONERS PANETTA'S SPIRITS REVIVE AS OUTSIDERS PAINT HIM AS A TRUTHTELLER RATHER THAN A TRAITOR FOR HIS HEADLINEMAKING INTERVIEW EVEN THOUGH ADMINISTRATION INSIDERS REMAIN HOSTILE AND INCREDULOUS THE BUDGET CHIEF MOCKS HIS PREDICAMENT BY WALKING INTO A DINNER HELD IN BENTSEN'S HONOR HOLDING HIS ARM OVER HIS HEAD AS IF TO DEFLECT A BLOW DEPARTING FOB DEREK SHEARER QUITS HIS JOB AS DEPUTY UNDERSECRETARY OF COMMERCE TO RETURN TO LOS ANGELES CITING HIS WIFE'S HEALTH IT'S PURELY PERSONAL PURELY FAMILY SAYS SHEARER WHO SAYS HE MAY BE BACK LATER IN THE CLINTON PRESIDENCY GEPHARDT CATCHES FLAK FROM PROISRAEL FORCES FOR PUBLISHED COMMENTS SUGGESTING THAT AID TO ISRAEL AND EGYPT COULD BE CUT TO FIND FUNDS FOR RUSSIA THE MAJORITY LEADER STILL BELIEVES THAT THE ENTIRE FOREIGNAID BUDGET IS ON THE TABLE AN AIDE SAYS BUT HASTILY ADDS GEPHARDT ISN'T ENDORSING THE IDEA SHOWSTOPPER ROSS PEROT WHEN INFORMED LAST WEEK THAT CSPAN WOULDN'T HAVE A SPARE CAMERA CREW TO BROADCAST HIS CONGRESSIONAL TESTIMONY ON THE FREETRADE AGREEMENT OFFERED THROUGH AN AIDE TO PROVIDE A CREW AT HIS OWN EXPENSE THE CABLE NETWORK REFUSED THE OFFER CLINTON HOPES HIS NATIONAL SERVICE PLAN REVIVES HIS NEW DEMOCRAT IMAGE AIDES SAY THE PROGRAM TO BE UNVEILED TODAY AT A NEW ORLEANS MEETING OF THE MODERATE DEMOCRATIC LEADERSHIP COUNCIL DELIVERS ON CLINTON'S CAMPAIGN PLEDGE TO STRESS PERSONAL RESPONSIBILITY MORE THAN GOVERNMENT HANDOUTS THE PLAN WOULD LET YOUNG AMERICANS EARN FUNDS FOR COLLEGE OR JOBTRAINING PROGRAMS BY DOING COMMUNITY SERVICE AS NURSES TEACHERS LAWENFORCEMENT OFFICERS AND COUNSELORS AIDES PROMISE CLINTON'S LEGISLATION WILL NOT CREATE A BIG PEACE CORPSTYPE PROGRAM BUT RATHER A SVELTE AGENCY IT STILL WILL BE COSTLY CLINTON PLANS POUR 74 BILLION INTO THE PROGRAM OVER THE NEXT FOUR YEARS BUT BECAUSE IT WILL HELP SUPPLANT THE CURRENT DEFAULTPLAGUED COLLEGE LOAN PROGRAM IT HAS BIPARTISAN SUPPORT THOUGH FUNDS FOR A SUMMER DEMONSTRATION PROJECT DIED WITH THE ECONOMIC STIMULUS BILL THE ADMINISTRATION WILL ANNOUNCE THAT MONEY WILL BE SHIFTED FROM ELSEWHERE IN THE BUDGET MINOR MEMOS A NEW 24HOUR CONSERVATIVE TV NETWORK PLANS A VIDEO VERSION OF THE NATIONAL REVIEW AND A VERSION OF ENTERTAINMENT TONIGHT CALLED ENTERTAINING RIGHT FORMER DRUG CZAR BENNETT SAYS THE YOUNGISH CLINTON WHITE HOUSE REMINDS HIM OF THE LAW SCHOOL DORM OF AN IVY LEAGUE UNIVERSITY WHITE HOUSE POLITICAL DIRECTOR RAHM EMANUEL CALLS YELTSIN'S REFERENDUM VICTORY CLINTON'S FIRST SUCCESSFUL SPECIAL ELECTION 9304300037 930430 WORLD MARKETS LONDON STOCKS FALL INFLUENCED BY FUTURES PIT EUROPEAN PRICES WEAKEN ON US GERMAN NEWS A WALL STREET JOURNAL NEWS ROUNDUP LONDON SHARE PRICES LOST GROUND THURSDAY NEVER EMERGING INTO POSITIVE TERRITORY AS THE FUTURES MARKET CONTINUED TO DOMINATE STOCKMARKET ACTIVITY THE TOKYO EXCHANGE WAS CLOSED THURSDAY FOR A JAPANESE HOLIDAY NATIONAL GREENERY DAY WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10479 UP 028 REFLECTING INCREASES IN MARKETS IN THE ASIA/PACIFIC REGION AND IN THE AMERICAS AND A DROP IN EUROPEAN MARKETS TOBACCO STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 7386 UP 127 OR 18 WITH PHILIP MORRIS OF THE US POSTING AN 36 GAIN IN ITS LOCAL CURRENCY ENTERTAINMENT STOCKS TRAILED AT 13111 DOWN 205 OR 15 WITH TIME WARNER OF THE US SLIDING 26 IN LOCAL CURRENCY IN TRADING FRIDAY IN TOKYO THE NIKKEI 225STOCK INDEX ROSE 16756 POINTS TO CLOSE THE MORNING SESSION AT 2062213 IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX WHICH OPENED WITH A LOSS OF 236 POINTS SHORTLY AFTER THE SESSION BEGAN CLOSED AT 27868 DOWN 105 POINTS THE FT 30STOCK INDEX FELL 81 POINTS TO 22003 VOLUME WAS A MODERATELY ACTIVE 542 MILLION SHARES COMPARED WITH 6991 MILLION SHARES A DAY EARLIER LITTLE FRESH NEWS EMERGED TO SWAY LONDON TRADING AND WEAKNESS IN THE FUTURES PIT SET THE BOURSE'S MOOD FOR THE SECOND DAY IN A ROW STOCKS' DECLINES WERE BROADBASED IN FRANKFURT SHARE PRICES DECLINED SLIGHTLY THE DAX 30STOCK INDEX FELL 493 POINTS TO 162394 AFTER TRADING IN A NARROW RANGE THE MARKET WAS DOMINATED BY TECHNICAL FACTORS OF THE DAX STOCKS 22 DROPPED AND 7 ADVANCED IN PARIS DESPITE AN EARLYMORNING INTERESTRATE CUT BY THE BANK OF FRANCE SHARE PRICES ENDED LOWER ACROSS THE BOARD IN RESPONSE TO WORRISOME ECONOMIC NEWS IN THE US AND GERMANY AND AN EARLY DROP ON WALL STREET INDUSTRIAL STOCKS WERE HIT HARDEST INVESTORS SOLD ON NEWS THAT US ECONOMIC GROWTH IN THE FIRST QUARTER SLOWED FROM THE PREVIOUS THREE MONTHS AND THAT THE GERMAN ECONOMY COULD SHRINK MORE THAN PREVIOUSLY ESTIMATED THE FRENCH CENTRAL BANK'S EASING ITS FOURTH RATE CUT IN THREE WEEKS CAME A DAY AFTER THE GERMAN CENTRAL BANK LOWERED A LENDING RATE BUT PARIS MARKET ATTENTION REFOCUSED ON CORPORATE EARNINGS WHICH ARE EXPECTED TO SOFTEN AMID SLUGGISH ECONOMIC CONDITIONS AMSTERDAM STOCKS WHICH WERE FIRM FOR MOST OF THE DAY DIVED ON THE REPORTS ABOUT THE US AND GERMAN ECONOMIES THE DOLLAR'S CONTINUING SOFTNESS AND DISAPPOINTING EARNINGS IN THE DUTCH CHEMICAL SECTOR BECAUSE GERMANY IS THE NETHERLANDS' LARGEST TRADING PARTNER THE TWO ECONOMIES ARE CLOSELY LINKED AND DUTCH ECONOMIC GROWTH FORECASTS PROBABLY WILL HAVE TO BE LOWERED BECAUSE OF THE BIGGER GERMAN CONTRACTION EXPECTED MILAN PRICES DROPPED IN NERVOUS TRADING AS THE STOCK MARKET DIGESTED NEWS OF ITALIAN PRIME MINISTER CARLO A CIAMPI'S NEW CABINET WHICH INCLUDED FORMER COMMUNISTS AND SOME INVESTORS LIGHTENED POSITIONS OR TOOK PROFITS IN MADRID AFTER LACKLUSTER DEALINGS STOCKS SLUMPED AT THE CLOSE ON WALL STREET'S WEAK OPENING STOCKHOLM SHARES CLIMBED AS GAINS IN THE BANKING SECTOR OFFSET DECLINES IN OTHER BLUE CHIPS ZURICH STOCKS DROPPED BECAUSE OF A WEAKER DOLLAR GERMANY'S WORSENING ECONOMY AND WALL STREET'S EARLY DOWNTURN IN SYDNEY STOCKS FELL SHARPLY HURT BY A PLUNGE IN STOCKINDEX FUTURES AND THE EXPIRATION OF OPTIONS FOR THE FIRST TIME IN THREE WEEKS THE NUMBER OF STOCKS THAT LOST GROUND OUTNUMBERED THOSE THAT GAINED HONG KONG SHARES FINISHED NARROWLY MIXED ON EXPECTATIONS OF FURTHER SINOBRITISH TALKS ON THE BRITISH COLONY'S GOVERNMENT MANILA EQUITIES SURGED TO A NEW HIGH FOR THE MARKET ON AGGRESSIVE BUYING BY PHILIPPINE AND FOREIGN INSTITUTIONAL INVESTORS IN SEOUL BEARISHNESS ABOUT BIG BLUECHIP MANUFACTURING SHARES LEFT THE MAJOR INDEX LOWER THOUGH IT MASKED BRISK ACTIVITY IN SMALL MANUFACTURING SHARES WELLINGTON SHARES FINISHED AT A 32MONTH HIGH AS THE BOURSE CONTINUED TO BE BUOYED BY OVERSEASBASED DEMAND STEMMING FROM POSITIVE ECONOMIC INDICATORS FOR NEW ZEALAND AMONG CORPORATE DEVELOPMENTS IN LONDON IMPERIAL CHEMICAL INDUSTRIES ADVANCED 31 PENCE OR 25 TO 1278 2011 EXCEEDING MARKET EXPECTATIONS ICI'S FIRSTQUARTER PRETAX PROFIT ROSE 10 TO 233 MILLION 3666 MILLION FROM A YEAR EARLIER ON GAINS BY ZENECA PHARMACEUTICALS AND ICI CHEMICALS THOSE BUSINESSES WHICH WILL BE SPLIT IN JUNE WILL BE HELPED BY THE DEPRECIATION OF THE POUND AGAINST OTHER CURRENCIES ICI SAID THOUGH IT NOTED SIGNS OF BRITAIN'S RECOVERY HAVEN'T TRANSLATED INTO IMPROVED VOLUMES OR PRICES IN FRANKFURT BASF ROSE 410 MARKS OR 17 TO 23940 MARKS 15147 ON BUYING RELATED TO THE DIVIDEND PAYMENT THE CHEMICAL COMPANY'S FIRSTQUARTER GROUP PRETAX PROFIT TUMBLED 50 TO 238 MILLION MARKS 1506 MILLION BASF CITED PRESSURE ON PRICES AND SAID IT WOULD EXPAND COSTCUTTING MEASURES AND CONCENTRATE ON ITS STRONGEST BUSINESS REGIONS IN MILAN ING C OLIVETTI SLIPPED 4 LIRE TO 1856 LIRE 127 THE MAKER OF OFFICE AUTOMATION EQUIPMENT POSTED A 1992 CONSOLIDATED LOSS OF 6499 BILLION LIRE 4436 MILLION WHICH WIDENED FROM A YEAREARLIER LOSS OF 4598 BILLION LIRE OLIVETTI ALSO SAID DIGITAL EQUIPMENT OF THE US WILL MOVE UP TO MAY FROM MID1994 AN INCREASE IN ITS STAKE IN OLIVETTI TO 10 AS PART OF A STRATEGIC ALLIANCE BETWEEN THE COMPUTER MAKERS IT SAID DIGITAL WILL SUBSCRIBE FULLY TO ITS SHARE OF OLIVETTI'S PREVIOUSLY ANNOUNCED 903 BILLIONLIRA RIGHTS ISSUE 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 9304300036 930430 THURSDAY'S MARKETS STOCKS CLIMB BONDS ARE UP DOLLAR MIXED BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL STOCKS CLIMBED AFTER FALLING INTEREST RATES PAVED THE WAY FOR A LATEAFTERNOON RALLY BOND PRICES EDGED HIGHER AND THE DOLLAR WAS LOWER AGAINST MOST MAJOR CURRENCIES NEWS THAT GROSS DOMESTIC PRODUCT ROSE A SLUGGISH 18 CONSIDERABLY LESS THAN EXPECTED IN THE FIRST QUARTER DAMPED INVESTORS' APPETITE FOR STOCKS EARLY IN THE DAY BUT SIGNS THAT INTEREST RATES WERE HEADED LOWER SPARKED A TURNAROUND IN THE MARKET LATER IN THE DAY IT'S A FRAGILE ECONOMY WITH EXTREME SECTOR ROTATION THAT PRODUCES A VERY NERVOUS MARKET SAID JEFFREY SHAMES CHIEF EQUITY OFFICER AND PRESIDENT OF MASSACHUSETTS FINANCIAL SERVICES AND DESPITE YESTERDAY'S GAINS MANY MONEY MANAGERS ARE SKEPTICAL ABOUT THE MARKET'S ABILITY TO CLIMB MUCH HIGHER THE MARKET IS LACKING A MANTLE OF LEADERSHIP SAID RICHARD EAKLE PRESIDENT OF EAKLE ASSOCIATES THE MOST RECENT SECTOR OF STRENGTH FINANCIAL STOCKS HAVE BROKEN DOWN HE NOTED THAT THE SOFTNESS IN THE FINANCIAL STOCKS IS ESPECIALLY SIGNIFICANT BECAUSE THEY ACCOUNT FOR 43 OF THE MORE THAN 2000 STOCKS LISTED ON THE NEW YORK STOCK EXCHANGE IF A LARGE NUMBER OF STOCKS ON THE NEW YORK STOCK EXCHANGE ARE INTERESTRATE SENSITIVE AND THEY TAKE A TURN FOR THE WORSE IT HAS A STRONG IMPACT HE SAID MR EAKLE WHO HAS BEEN BEARISH ON THE MARKET FOR THE PAST THREE MONTHS SAID HE EXPECTS THE INDUSTRIAL AVERAGE AND S&P 500 TO CORRECT BETWEEN 6 TO 8 AS INVESTORS BECOME MORE CONVINCED THAT PRESIDENT CLINTON'S POLICIES ARE LIKELY TO RESULT IN SLOWER ECONOMIC GROWTH WORLDWIDE STOCK PRICES GAINED IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX ADDED 028 TO 10479 STOCKS GAINED VOLUME TOTALED 2449 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1021 ISSUES ADVANCED AND 875 DECLINED THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 1579 MARKS AND 11100 YEN COMPARED WITH 15810 MARKS AND 11215 YEN WEDNESDAY 9304300035 930430 NORWEGIAN JOBLESS RATE OSLO NORWAY'S OFFICIAL UNEMPLOYMENT RATE WAS 56 OF THE WORK FORCE AT THE END OF APRIL UNCHANGED FROM MARCH BUT HIGHER THAN THE 53 REPORTED A YEAR AGO A STATE LABOR DIRECTORATE SAID 120100 NORWEGIANS WERE REGISTERED WITH GOVERNMENT EMPLOYMENT OFFICES AS BEING COMPLETELY UNEMPLOYED IN LATE APRIL 1900 MORE THAN IN APRIL 1992 9304300034 930430 QUAKER CHEMICAL PACT IN FRANCE CONSHOHOCKEN PA QUAKER CHEMICAL CORP SAID IT REACHED AN AGREEMENT IN PRINCIPLE TO BUY 100 OF THE STOCK OF RAFFINERIES DE L'ILE DE FRANCE A MAKER OF METALWORKING FLUIDS QUAKER CHEMICAL DIDN'T DISCLOSE TERMS OF THE CASH TRANSACTION BUT A SPOKESMAN SAID THE FRENCH COMPANY HAD SALES IN 1992 OF ABOUT 10 MILLION 9304300033 930430 BUSINESS BRIEF MARK IV INDUSTRIES INC COMPANY AGREES TO ACQUIRE TRANSMISSION UNIT OF PIRELLI MARK IV INDUSTRIES INC SAID IT AGREED TO ACQUIRE PIRELLI TRASMISSIONI INDUSTRIALI SPA THE POWER TRANSMISSION UNIT OF PIRELLI SPA FOR ABOUT 105 MILLION MARK IV BASED IN AMHERST NY SAID THE PLANNED SALE OF SOME INSTRUMENTATION UNITS TO DANAHER CORP WILL CONTRIBUTE ABOUT 35 MILLION OF THE PURCHASE PRICE ANOTHER 60 MILLION WILL COME FROM EARLIER SALES OF NONCORE UNITS AND THE DISPOSITION OF NONOPERATING ASSETS IN THE SECOND QUARTER A MULTICURRENCY CREDIT FACILITY WITH A SYNDICATION OF COMMERCIAL BANKS WILL PROVIDE THE BALANCE PIRELLI TRASMISSIONI POSTED 1992 SALES OF ABOUT 165 MILLION AND INCOME BEFORE INTEREST AND TAXES OF ABOUT 25 MILLION MARK IV WHICH MAKES POWER TRANSFER FLUID HANDLING MASS TRANSIT TRAFFIC CONTROL AND PROFESSIONAL AUDIO EQUIPMENT SAID THE ACQUISITION IS PART OF A STRATEGY TO DOUBLE ITS REVENUE BASE AND INCREASE FOREIGN SALES TO 50 OF TOTAL SALES BY THE END OF THE DECADE 9304300032 930430 TECHNOLOGY ALPHA INTERFERON DRUG MAY TREAT MS DISEASE NEW YORK A TEXAS RESEARCHER SAID A DRUG CURRENTLY SOLD TO FIGHT VIRUSES AND CANCER SHOWS PROMISE AS A TREATMENT FOR MULTIPLE SCLEROSIS AT THE AMERICAN ACADEMY OF NEUROLOGY ANNUAL MEETING IN NEW YORK YESTERDAY STALEY A BROD ASSISTANT PROFESSOR OF NEUROLOGY AT THE UNIVERSITY OF TEXAS SOUTHWESTERN MEDICAL CENTER AT DALLAS PRESENTED RESULTS OF AN ANIMAL STUDY SHOWING ALPHA INTERFERON WAS EFFECTIVE IN TREATING A FORM OF MULTIPLE SCLEROSIS DR BROD AND HIS ASSOCIATES ALSO FOUND THE DRUG WAS MORE EFFECTIVE WHEN TAKEN ORALLY THAN WHEN INJECTED PREVIOUSLY RESEARCHERS ASSUMED INJECTABLE FORMS OF THE DRUG WOULD BE MORE EFFECTIVE BECAUSE ORAL VERSIONS WOULD BE DIGESTED BEFORE THEY COULD ACT ACCORDING TO DR BROD ALPHA INTERFERON IS CLOSELY RELATED TO BETA INTERFERON WHICH A FOOD AND DRUG ADMINISTRATION PANEL RECENTLY RECOMMENDED FOR APPROVAL IN INJECTABLE FORM AS A TREATMENT FOR THE DISEASE THE DRUG BETASERON IS MADE BY BERLEX LABORATORIES AND CHIRON CORP THE ALPHA INTERFERON USED IN THE STUDY IS SOLD BY SCHERINGPLOUGH CORP BUT SCHERING DIDN'T FINANCIALLY SUPPORT THE STUDY DR BROD SAID 9304300031 930430 BRITAIN'S BARCLAYS PLC TO LAUNCH OPERATION FOR PHONE BANKING LONDON BARCLAYS PLC HAS FINALLY DECIDED TO DIP ITS TOE IN THE TELEPHONE BANKING MARKET BY LAUNCHING A PILOT OPERATION FOR 10000 CLIENTS IN SELECTED AREAS OF BRITAIN IN JULY THE PLAN ANNOUNCED AT THE BANK'S ANNUAL SHAREHOLDERS MEETING FOLLOWS SIMILAR MOVES BY OTHER LEADING BANKS IN BRITAIN AND CONTINENTAL EUROPE BARCLAYS BRITAIN'S BIGGEST BANK HAS BEEN RUMORED FOR MONTHS TO BE ON THE POINT OF JOINING THE MOVE TO TELEPHONE BANKING BUT OFFICIALS SAID IT HAD BEEN TAKING TIME TO SEE HOW RIVAL SYSTEMS DEVELOPED AND EXAMINE CUSTOMER PREFERENCES BARCLAYS MADE HEADLINES EARLIER THIS YEAR WHEN A PRETAX LOSS FOR 1992 ITS FIRST EVER COINCIDED WITH A CONTROVERSY OVER ITS TOPMANAGEMENT STRUCTURE AND THE ROLE OF ITS CHAIRMAN AND CHIEF EXECUTIVE ANDREW BUXTON MR BUXTON BORE THE BRUNT OF FREQUENTLY AGGRESSIVE ATTACKS FROM SHAREHOLDERS AT THE MEETING OVER THE BANK'S POOR BUSINESS PERFORMANCE AND ITS DECISION TO CUT ITS DIVIDEND FOR 1992 BUT HE REJECTED CALLS FOR HIS AND THE ENTIRE BOARD'S RESIGNATION ASSERTING THAT THE BANK HAD TACKLED PROBLEM AREAS AND WAS SHOWING IMPROVED OPERATING RESULTS BARCLAYS HAD AN ENCOURAGING START TO 1993 MR BUXTON TOLD SHAREHOLDERS HE DECLINED TO GIVE FURTHER DETAILS HOWEVER BEYOND CITING IMPROVED EARNINGS IN ITS COMMERCIAL BANKING AND SERVICE OPERATIONS AND GOOD ACTIVITY AT ITS BZW INVESTMENT BANKING ARM MR BUXTON ANNOUNCED EARLIER THIS YEAR THAT HE INTENDED TO SPLIT HIS POST AND THE BANK HAS CONTRACTED HEADHUNTERS TO SEARCH FOR A NEW CHIEF EXECUTIVE SO FAR HOWEVER NO CANDIDATE HAS BEEN CHOSEN ALTHOUGH BOARD MEMBERS INVOLVED IN THE PROCESS SAID THE SEARCH IS PROGRESSING ALONG WITH BARCLAYCALL AS THE BANK'S TELEPHONEBANKING SERVICE WILL BE KNOWN BARCLAYS ALSO ANNOUNCED THE INSTALLATION OF A NEW COMPUTERIZED SYSTEM TO HELP BANK OFFICERS ASSESS LENDING RISKS NOW BEING INTRODUCED ON A PILOT BASIS IN SELECTED BRANCHES MR BUXTON SAID HE EXPECTED THIS NEW SYSTEM TO PLAY AN IMPORTANT PART IN AVOIDING THE SORT OF LENDING MISTAKES MADE IN THE LATE 1980S THAT PUSHED BARCLAYS INTO THE RED LAST YEAR 9304300030 930430 WHO'S NEWS HOUSE COUNSEL TO LEAVE POSITION WASHINGTON STEVE ROSS THE OFTEN EMBATTLED HOUSE COUNSEL OVER THE PAST DECADE WILL STEP DOWN FROM HIS POST TO JOIN THE WASHINGTON LAW FIRM AKIN GUMP STRAUSS HAUER & FELD THE 41YEAROLD ATTORNEY BECAME GENERAL COUNSEL UNDER FORMER SPEAKER THOMAS O'NEILL AND SERVED UNDER SPEAKERS JAMES WRIGHT AND THOMAS FOLEY IN THE PAST YEAR HE HAS BECOME A LIGHTNING ROD FOR REPUBLICAN COMPLAINTS REGARDING SCANDALS EMBROILING THE HOUSE POST OFFICE AND NOWDEFUNCT HOUSE BANK BUT THROUGH HIS CAREER HE HAS BEEN BEST KNOWN AS A STRONG DEFENDER OF CONGRESSIONAL PREROGATIVES INCLUDING A SUCCESSFUL DEFENSE OF THE CONSTITUTIONALITY OF THE INDEPENDENTPROSECUTOR LAW 9304300029 930430 GEN MCPEAK'S BOLD STAND ON AIR STRIKES IS SEEN BY SOME AS PITCH FOR POWELL'S JOB BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ON TUESDAY ADM DAVID JEREMIAH THE VICE CHAIRMAN OF THE JOINT CHIEFS OF STAFF WARNED THAT CONDUCTING AIR STRIKES IN THE FORMER YUGOSLAVIA WOULD BE EXTREMELY RISKY AND SAID HE HADN'T HEARD A SINGLE MILITARY OFFICER ADVOCATE SUCH STRIKES THE NEXT DAY GEN MERRILL MCPEAK THE CHIEF OF STAFF OF THE AIR FORCE UNDERCUT HIS SUPERIOR OFFICER AND TOLD A CONGRESSIONAL SUBCOMMITTEE THAT DEVASTATING AIR STRIKES AGAINST SERB ARTILLERY POSITIONS COULD BE CARRIED OUT WITHOUT MUCH RISK TO US PILOTS HIS ASSERTION THAT BOMBING SERB ARTILLERY EMPLACEMENTS WOULD POSE VIRTUALLY NO RISK SHOCKED SOME OF HIS PENTAGON COLLEAGUES THEY ALSO SAY THESE COMMENTS CONTRADICT WHAT HE TOLD THEM PRIVATELY A FEW HOURS LATER ANOTHER REVERSAL FOLLOWED WITH GEN MCPEAK AT HIS RIGHT DEFENSE SECRETARY LES ASPIN ANNOUNCED HE WAS LIFTING THE BAN ON WOMEN FLYING COMBAT AIRCRAFT A MOVE GEN MCPEAK HAD VIGOROUSLY OPPOSED UNTIL RECENTLY AFTER THE NEWS CONFERENCE ENDED GEN MCPEAK PERSONALLY AND GRACIOUSLY INTRODUCED THE AIR FORCE'S FIRST WOMAN F15 PILOT AN AIR FORCE OFFICIAL SAID THAT ALL GEN MCPEAK WAS TRYING TO SAY ABOUT BOSNIA WAS THAT IT WAS POSSIBLE PUTTING ASIDE QUESTIONS OF POLITICS AND COLLATERAL DAMAGE TO DESTROY SERB ARTILLERY EMPLACEMENTS OVER TIME BUT THAT'S A MINORITY VIEW AT THE PENTAGON INSIDERS SAY THREE THINGS ARE GOING ON WITH GEN MCPEAK FOR ONE THEY SAY THE GENERAL IS AN OLD PILOT AND OLD PILOTS SOMETIMES SHOOT FROM THE HIP HIS PREDECESSOR WAS FIRED FOR COMMENTS MADE BEFORE THE GULF WAR SECOND THE GENERAL'S COMMENTS ABOUT BOSNIA MAY HAVE BEEN INTENDED TO BUCK UP A FIGHTER COMMUNITY UNCERTAIN ABOUT THE INTRODUCTION OF WOMEN MOST IMPORTANT THEY SAY THE RACE TO SUCCEED GEN COLIN POWELL AS CHAIRMAN OF THE JOINT CHIEFS IS SEMIOFFICIALLY UNDER WAY THE ONLY PLAUSIBLE EXPLANATION THAT I'VE HEARD IS THAT HE THINKS IT ISN'T EASY BUT HE ALSO THINKS THIS IS WHAT HIS POLITICAL MASTERS WANT TO HEAR SAYS ONE PENTAGON INSIDER THE JOCKEYING HAS BEGUN CONCLUDES ONE SENATOR HOWEVER A LONGTIME PENTAGON WATCHER SAID MY OWN PERSONAL GUT INSTINCT IS THAT MCPEAK ISN'T RUNNING FOR CHAIRMAN WITH GEN POWELL SCHEDULED TO RETIRE IN LESS THAN SIX MONTHS PRESIDENT CLINTON MUST SOON BEGIN THINKING ABOUT SELECTING A NEW CHAIRMAN THERE'S REASON TO BELIEVE GEN MCPEAK IS IN THE RUNNING BY MILITARY TRADITION IT IS THE AIR FORCE'S TURN TO BE CHAIRMAN FOLLOWING THE ARMY'S GEN POWELL AND THE NAVY'S ADM WILLIAM CROWE JR WHAT'S MORE GEN MCPEAK AND MARINE COMMANDANT GEN CARL MUNDY JR ARE SEEN AS THE ONLY TWO CURRENT MEMBERS OF THE JOINT CHIEFS WITH ANY CHANCE OF GETTING THE TOP SLOT THE THINKING IN THE PENTAGON IS THAT THIS WEEK GEN MCPEAK WHO ONCE WAS A MEMBER OF THE AIR FORCE'S THUNDERBIRDS AERIAL DEMONSTRATION TEAM AND LATER FLEW THE F100 SUPER SABRE IN VIETNAM MADE HIS BID TO BE THE NATION'S TOP MILITARY OFFICER HE ISN'T EXPECTED TO SUCCEED HOWEVER FOR ONE THING THE ASPIN CAMP PERHAPS FEELING THAT THE BUSH ADMINISTRATION LET CIVILIAN AUTHORITY OVER THE MILITARY ERODE MAY SEND A MESSAGE BY BREAKING THE ROTATION AND NOT PICKING AN AIR FORCE GENERAL ALSO THE AIR FORCE IS SEEN BY PENTAGON CIVILIANS AND MANY IN CONGRESS AS GETTING A GOOD START ON ITS POSTCOLD WAR RESTRUCTURING BUT FALLING BEHIND THE NAVY DURING THE PAST YEAR IN ADDITION THE AIR FORCE'S CREDIBILITY WITH CONGRESS HAS BEEN DAMAGED BY THE TROUBLED C17 MILITARY CARGO JET PROGRAM SO THE CURRENT BETTING IS THAT PRESIDENT CLINTON IS LIKELY TO PICK A NAVY ADMIRAL CHARLES LARSON PAUL DAVID MILLER OR THE MOST RADICAL CHOICE WILLIAM OWENS THE OXFORDEDUCATED STRATEGIST WHO HAS BEEN KEY IN PLANNING THE NAVY'S POSTTAILHOOK POSTCOLD WAR OVERHAUL EVEN IF AN AIR FORCE GENERAL IS SELECTED IT IS LIKELY TO BE GEN GEORGE LEE BUTLER COMMANDER OF THE US STRATEGIC COMMAND WHO IS SEEN BY MANY AS THE INTELLECTUAL AUTHOR OF THE BUSH ADMINISTRATION'S BASE FORCE THE MOVE TO PARE THE ARMED FORCES 25 BELOW THEIR COLD WAR LEVEL AND THEN RESHAPE THEM 9304300028 930430 BUSINESS BRIEF UNITED TECHNOLOGIES CORP PRATT & WHITNEY UNIT PLANS JOINT VENTURE IN UKRAINE UNITED TECHNOLOGIES CORP'S PRATT & WHITNEY DIVISION SIGNED A JOINT VENTURE WITH A UKRAINIAN RESEARCH INSTITUTE TO DEVELOP NEW METALS AND CERAMICS FOR AEROSPACE MATERIALS THE AGREEMENT WITH THE EO PATON ELECTRIC WELDING INSTITUTE ACADEMY OF SCIENCES OF UKRAINE IN KIEV WILL ESTABLISH THE PRATT & WHITNEYPATON RESEARCH CENTER THE RESEARCH CENTER WILL EXPLORE NEW MATERIALS TECHNOLOGY USING HIGH RATE ELECTRON BEAM DEPOSITION PROCESSING THE METHOD DEVELOPED BY PATON VAPORIZES METALS AND OTHER MATERIALS IN A VACUUM ALLOWING THEM TO BE CONDENSED AS A COATING OR A TAILORED SHAPE PRATT & WHITNEY WILL USE THE TECHNOLOGY FOR ITS JET AND ROCKET ENGINES THE CENTER WILL ALSO TRAIN SPECIALISTS PUBLISH JOINT ARTICLES FILE JOINT PATENTS AND FABRICATE TEST SAMPLES AND PROTOTYPE COMPONENTS FOR USE IN ADVANCED ENGINE DESIGNS PRATT & WHITNEY SAID 9304300027 930430 BUSINESS BRIEF CHIQUITA BRANDS INTERNATIONAL INC INCOME INCREASES FIVEFOLD RESTRUCTURING IS CREDITED CHIQUITA BRANDS INTERNATIONAL INC CITING RESTRUCTURING AND COSTCUTTING POSTED IMPROVED FIRSTQUARTER NET INCOME OF 275 MILLION OR 53 CENTS A SHARE A FIVEFOLD INCREASE OVER THE YEAREARLIER PERIOD IN LAST YEAR'S FIRST QUARTER THE COMPANY POSTED A NET OF 55 MILLION OR 10 CENTS A SHARE INCLUDING A SEVENCENTASHARE LOSS FOR DISCONTINUED OPERATIONS SALES IN THE QUARTER ROSE 3 TO 731 MILLION FROM 708 MILLION A YEAR AGO THE COMPANY SAID FIRSTQUARTER RESULTS WERE HELPED BY BANANA PRICES IN EUROPE WHICH WERE LOWER THAN NORMAL BUT NONETHELESS BETTER THAN A YEAR EARLIER THE CINCINNATIBASED FOOD COMPANY HOWEVER SAID UNCERTAINTIES SURROUNDING EUROPEAN COMMUNITY POLICY HAVE DRIVEN EARLY SECONDQUARTER BANANA PRICES BELOW NORMAL SEASONAL LEVELS CHIQUITA SAID IT IS CONTINUING TO REORGANIZE ITS EUROPEAN UNITS TO PREPARE FOR THE TRANSITION TO THE EUROPEAN COMMUNITY 9304300026 930430 INTERNATIONAL BRIEF BASF AG PRETAX PROFIT DROPPED 50 SALES FELL 72 IN QUARTER BASF AG ONE OF GERMANY'S BIGGEST CHEMICALS COMPANIES SAID ITS GROUP PRETAX PROFIT PLUNGED 50 IN THE FIRST QUARTER TO 238 MILLION MARKS 1506 MILLION FROM 473 MILLION MARKS SALES FELL 72 TO 1104 BILLION MARKS FROM 1189 BILLION A YEAR EARLIER THE POOR RESULTS WEREN'T A SURPRISE BASF CHARACTERIZING ITS ORDERS SITUATION AS UNSATISFACTORY SAID INCOMING ORDERS AND ORDER BACKLOG ARE STAGNATING AT A COMPARATIVELY LOW LEVEL BASF ADDED THAT IT SEES NO SIGNIFICANT CHANGE IN THIS SITUATION DURING 1993 THE COMPANY BLAMED ITS FIRSTQUARTER DOWNTURN ON LOW SALES VOLUME COMBINED WITH CONTINUING PRICE PRESSURES WHILE THE BUSINESS ENVIRONMENT IS POOR EUROPEWIDE THE COMPANY SAID IT SAW IMPROVEMENT IN ITS US BUSINESS AND NOTED GOOD RESULTS IN LATIN AMERICA SALES IN ASIA WERE FLAT BASF ADDED 9304300025 930430 INTERNATIONAL BRIEF IMPERIAL CHEMICAL INDUSTRIES PLC PRETAX EARNINGS ARE UP 10 BUT FIRM NOTES PROBLEMS IMPERIAL CHEMICAL INDUSTRIES PLC REPORTED PRETAX PROFIT ROSE 10 IN THE FIRST QUARTER FROM A YEAR BEFORE ON GAINS BY BOTH ITS CHEMICALS BUSINESS AND THE ZENECA PHARMACEUTICALS UNIT DENYS HENDERSON CHAIRMAN OF THE BRITISH COMPANY SAID SIGNS OF RECOVERY HAVEN'T TRANSLATED INTO IMPROVED VOLUME OR PRICES BUT HE DID SAY THE DEVALUATION OF THE POUND WILL HELP BOTH BUSINESSES WHICH WILL BE SPLIT IN JUNE WITH ZENECA BEING SPUN OFF VIA A 13BILLION 204 BILLION RIGHTS ISSUE OF NEW ZENECA SHARES THE GROUP AS A WHOLE ENJOYED SUBSTANTIAL GAINS FROM CURRENCY RATES DURING THE QUARTER MR HENDERSON SAID ICI GROUP'S FIRSTQUARTER PRETAX PROFIT OF 233 MILLION WAS WELL ABOVE MARKET EXPECTATIONS OF ABOUT 180 MILLION 9304300024 930430 WHO'S NEWS NORTHERN TELECOM LTD NORTHERN TELECOM LTD TORONTO FRANK A DUNN 39 YEARS OLD WAS NAMED VICE PRESIDENT AND CONTROLLER HE SUCCEEDS GEORGE AMOSS 51 WHO BECOMES VICE PRESIDENT FOR BUSINESS ANALYSIS AND PLANNING NORTHERN TELECOM IS A SUPPLIER OF TELECOMMUNICATIONS EQUIPMENT 9304300023 930430 TAX BITE IS WORSE FOR SOME FUNDS THAN OTHERS BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTING IN MUTUAL FUNDS CAN BE MORE TAXING THAN YOU THINK THAT'S THE CONCLUSION REACHED BY TWO SEPARATE STUDIES THAT LOOKED AT THE AFTERTAX RETURNS GENERATED BY MUTUAL FUNDS THE STUDIES FOUND THAT FOR INVESTORS IN UPPER TAX BRACKETS TAXES CAN TAKE A HUGE AND UNNECESSARILY HIGHBITE OUT OF RETURNS AND THAT TAX BITE COULD SOON GET EVEN BIGGER IF THE CLINTON INCOME TAX INCREASE BECOMES LAW MOST MUTUAL FUNDS ARE NOT PAYING ANY ATTENTION AT ALL TO SHAREHOLDER TAXATION SAYS JOHN B SHOVEN A PROFESSOR OF ECONOMICS AT STANFORD UNIVERSITY AND COAUTHOR OF ONE OF THE STUDIES ONE OF THE THINGS THAT MUTUAL FUNDS OFTEN SACRIFICE IS THE ADVANTAGE YOU CAN GET FROM POSTPONING CAPITAL GAINS BOTH STUDIES CONCLUDE THAT MONEY MANAGERS SHOULD CHANGE THE WAY THEY RUN MONEY TO REDUCE THEIR SHAREHOLDERS' TAXES AND THE TWO STUDIES ARGUE THAT UNMANAGED INDEX FUNDS WHICH ESCHEW HEAVY STOCK TRADING AND MERELY TRY TO TRACK THE PERFORMANCE OF A MARKET BENCHMARK SUCH AS THE STANDARD & POOR'S 500STOCK INDEX HAVE VERY STRONG AFTERTAX PERFORMANCE AS A RESULT INDEX FUNDS MAKE A LOT OF SENSE FOR THE TAXABLE PORTION OF A HIGHINCOME INVESTOR'S PORTFOLIO MUTUAL FUNDS THEMSELVES DON'T USUALLY PAY TAXES BUT WHEN THEY DISTRIBUTE GAINS THEIR SHAREHOLDERS BECOME LIABLE TO THE INTERNAL REVENUE SERVICE A PAPER TO BE PUBLISHED BY STANFORD'S CENTER FOR ECONOMIC POLICY RESEARCH BY MR SHOVEN AND JOEL M DICKSON A DOCTORAL STUDENT FOUND THAT SOME MUTUAL FUNDS HAND THEIR SHAREHOLDERS FAR BIGGER TAXABLE DISTRIBUTIONS OVER THE YEARS THAN OTHERS THE PAPER EXAMINED THE AFTERTAX RETURNS USING THREE DIFFERENT TAX BRACKETS AND HISTORICAL TAX RATES FOR INVESTORS IN THE 148 LARGEST GROWTH AND GROWTHANDINCOME STOCK FUNDS IN THE US THEIR FINDINGS IN THE 10 YEARS THROUGH YEAREND 1992 TAXES ON AVERAGE ATE 2422 OF THE RETURN THAT A HIGHTAX INVESTOR WOULD HAVE EARNED AND THAT'S THE LOSS TO TAXES BEFORE THE FUND SHARES ARE FINALLY SOLD WHICH WOULD TRIGGER EVEN MORE TAXES WHEN TAXES ARE FIGURED IN SOME STELLARPERFORMING FUNDS SUDDENLY LOSE THEIR LUSTER FOR INSTANCE IMAGINE THAT 10 YEARS AGO A TAXFREE INVESTOR PUT 10000 IN BOTH VANGUARD WINDSOR FUND AND VANGUARD INDEX TRUST500 PORTFOLIO BEFORE TAXES ARE CONSIDERED THE INVESTMENT IN THE VAUNTED WINDSOR FUND RUN BY RENOWNED STOCKPICKER JOHN NEFF WOULD HAVE GROWN TO 45370 THAT'S 2300 MORE THAN YOU WOULD HAVE EARNED WITH THE VANGUARD 500 PORTFOLIO AN INDEX FUND WHICH MERELY TRIES TO REPLICATE THE PERFORMANCE OF THE S&P 500 BUT AFTER TAXES IT'S A DIFFERENT STORY FOR THE STUDY'S HYPOTHETICAL HIGHINCOME INVESTOR THE VANGUARD INDEX FUND WOULD HAVE TURNED 10000 INTO 35360 SOME 4600 MORE THAN WINDSOR IF THE FUNDS WERE SOLD AT THE END OF THE 10 YEARS THE INDEX FUND INVESTOR WOULD HAVE HAD TO PAY A LOT OF TAXES BUT THE INDEX FUND WOULD STILL HAVE MADE 550 MORE FOR THE HIGHTAX INVESTOR THAN WINDSOR EVEN THOUGH WINDSOR HAD A FAR BETTER PRETAX PERFORMANCE YOU GET A LOT OF MOVEMENT IN FUND RANKINGS ONCE TAXES GET TAKEN OUT OF PERFORMANCE MR SHOVEN SAYS THE HARDESTHIT FUND IN THE STUDY WAS ALLIANCE GROWTH & INCOME FUND A WHOSE HIGHINCOME SHAREHOLDERS LOST 351 OF THEIR GAINS TO TAXES ASSUMING THE SHARES WERE STILL HELD AND NOT SOLD AT THE END OF THE 10 YEARS THE MOST GENTLE TAX TREATMENT WAS METED OUT BY FRANKLIN GROWTH WHOSE SHAREHOLDERS PAID OUT A MERE 94 OF THEIR PRETAX RETURN IN TAXES THE FRANKLIN FUND RARELY TRADES STOCKS INSTEAD IT HANGS ON TO ITS WINNING STOCK POSITIONS SO THAT CAPITAL GAINS BUILD UP INSIDE THE FUND ONE OF THE MOST TREASURED ASSETS A TAXABLE PORTFOLIO CAN HAVE IS AN UNREALIZED GAIN SAYS ROBERT ARNOTT PRESIDENT OF FIRST QUADRANT CORP A MONEY MANAGEMENT FIRM MR ARNOTT AND ROBERT H JEFFREY PRESIDENT OF THE JEFFREY CO ANOTHER PRIVATE INVESTMENT FIRM WROTE THE SECOND PAPER WHICH IS FORTHCOMING IN THE JOURNAL OF PORTFOLIO MANAGEMENT AN UNREALIZED GAIN OCCURS WHEN A FUND BUYS A STOCK THAT APPRECIATES IN PRICE BUT THE FUND HAS NOT YET SOLD THE STOCK UNTIL THE FUND REALIZES THE GAIN BY SELLING THE STOCK FUND SHAREHOLDERS DON'T HAVE TO PAY TAXES ON THE GAIN DEFERRING A GAIN FOR 10 YEARS MEANS THAT YOU ENJOY THE RETURN ON THOSE DEFERRED TAXES FOR 10 YEARS SAYS MR ARNOTT THERE'S A COMPOUNDING EFFECT THAT'S QUITE REMARKABLE THE ARNOTT AND JEFFREY PAPER LOOKS AT THE TAX CONSEQUENCES OF TRADING STOCKS TO IMPROVE RETURNS THE AUTHORS FOUND THAT BY TRADING IN AN EFFORT TO BEAT THE BROAD MARKET INDEXES MONEY MANAGERS INCURRED IMMEDIATE TAXES THAT MADE BEATING THE TAXEFFICIENT INDEX FUNDS EVEN MORE DIFFICULT YOUR ANNUAL PRETAX RETURN HAS TO BE 2 TO 3 BETTER THAN AN INDEX FUND JUST TO BREAK EVEN AFTER TAX MR ARNOTT SAYS IF YOUR PRETAX RETURN IS 5 BETTER THEN IT BECOMES INTERESTING BUT HOW MANY MANAGERS CAN RELIABLY ADD 5 A YEAR YEAR AFTER YEAR AFTER YEAR THE STUDY FOUND THAT INDEX FUNDS PERFORMED EXTREMELY WELL AFTER ACCOUNTING FOR TAXES IN THE 10 YEARS THROUGH THE END OF 1991 BUT EVEN INDEX FUNDS PAY OUT SOME CAPITAL GAINS THE ONLY SUREFIRE WAY TO DEFER TAXES IS TO PUT FUNDS INTO INDIVIDUAL RETIREMENT ACCOUNTS OR OTHER TAXDEFERRED RETIREMENT PLANS IN THAT CASE TAXES AREN'T DUE UNTIL MONEY IS WITHDRAWN FROM THE PLANS IN A TAXDEFERRED ACCOUNT LIKE AN IRA SAYS MR ARNOTT THIS WHOLE PROBLEM DISAPPEARS SOME FINANCIAL PLANNERS ADVISE INVESTORS TO PUT HIGH TURNOVER FUNDS INTO THEIR TAXDEFERRED RETIREMENT PLANS BECAUSE HIGH TURNOVER FUNDS TEND TO GENERATE A LOT OF CAPITAL GAINS DISTRIBUTIONS IN A 401K PLAN OR IRA YOU HAVE A LOT OF LEEWAY SAYS WILLIAM JOHN MIKUS A MANAGING DIRECTOR OF FINANCIAL DESIGN AN INVESTMENT ADVISORY FIRM IN LARKSPUR CALIF YOU CAN HIRE A FUND WITH A LOT OF PORTFOLIO TURNOVER WITHOUT A LOT OF CONCERN MR MIKUS INVESTS HIS CLIENTS IN INDEX FUNDS OUTSIDE THEIR TAXDEFERRED RETIREMENT PLANS BOTH BECAUSE OF THE TAXEFFICIENCY OF INDEX FUNDS AND BECAUSE SHAREHOLDERS NEVER HAVE TO SELL AN INDEX FUND AND THUS INCUR TAXES DUE TO A CHANGE IN THE FUND'S MANAGER OR A SWITCH IN THE FUND'S INVESTMENT STYLE WHILE THE TWO STUDIES OF AFTERTAX RETURNS ARE NOT YET PUBLISHED THEY'VE ALREADY CHANGED AT LEAST ONE INVESTOR'S APPROACH TO TAXES SINCE DOING THIS RESEARCH SAYS MR ARNOTT I HAVE COMPLETELY RESTRUCTURED HOW I HANDLE MY OWN MONEY TAXES HIT SOME MUTUAL FUNDS HARDER THAN OTHERS BASED ON HOW OFTEN THE FUNDS TAKE GAINS BELOW ARE FUNDS THAT INCURRED SOME OF THE HEAVIEST AND LIGHTEST TAX BITES OVER THE 10 YEARS THROUGH DEC 31 1992 RETURNS RANKED BY AFTERTAX RESULTS FOR HIGHINCOME INVESTORS ARE NOT ADJUSTED FOR SALES CHARGES SOURCE CENTER FOR ECONOMIC POLICY RESEARCH STANFORD UNIVERSITY AT LEXINGTON CORPORATE LEADERS FUND TAXES WOULD HAVE CONSUMED 167 OF THE RETURNS TO HIGHINCOME INVESTORS OVER THE PAST 10 YEARS A TABLE ACCOMPANYING FRIDAY'S ARTICLE ON THE AFTERTAX RETURNS GENERATED BY MUTUAL FUNDS INCORRECTLY STATED THE TAX BITE AS 346 A STUDY BY THE CENTER FOR ECONOMIC POLICY RESEARCH STANFORD UNIVERSITY FAILED TO RECOGNIZE THAT SOME OF THE DISTRIBUTIONS BY THIS STOCK FUND ARE A TAXFREE RETURN OF CAPITAL 9304300022 930430 CLINTON STUDIES PAYROLL TAX FOR HEALTH PLAN LEVY WOULD BE ALTERNATIVE TO REQUIRING COVERAGE BE BOUGHT BY EMPLOYER BY HILARY STOUT AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS LOOKING CLOSELY AT FINANCING HEALTH COVERAGE FOR ALL AMERICANS THROUGH A PAYROLL TAX SUCH A LEVY WHICH ADMINISTRATION OFFICIALS ARE CALLING A PREMIUM WOULD BE AN ALTERNATIVE TO REQUIRING ALL EMPLOYERS TO BUY HEALTH INSURANCE FOR THEIR WORKERS UNDER THE PLAN EMPLOYERS WOULD CONTRIBUTE A CERTAIN PERCENTAGE OF THEIR PAYROLLS TO COVER THE COST OF HEALTH BENEFITS FOR THEIR EMPLOYEES AND POSSIBLY FOR OTHERS EMPLOYEES ALSO WOULD PAY A SHARE AS THEY DO NOW WITH SOCIAL SECURITY AND MEDICARE PAYROLL TAXES BUT INSTEAD OF GOING TO THE FEDERAL GOVERNMENT THE MONEY WOULD GO TO REGIONAL HEALTHINSURANCE PURCHASING COOPERATIVES ADVOCATES OF THIS ARRANGEMENT SAY IT WOULD BE SIMPLER TO ADMINISTER THAN REQUIRING ALL BUSINESSES LARGE AND SMALL TO PURCHASE HEALTH PLANS FOR THEIR EMPLOYEES ANOTHER MAJOR ADVANTAGE PROPONENTS SAY IS THAT HIGHERWAGE WORKERS AND THEIR EMPLOYERS WOULD PAY MORE THAN LOWERWAGE WORKERS AND THEIR EMPLOYERS HIGHLY PAID WORKERS WOULD THEREBY EFFECTIVELY SUBSIDIZE HEALTH CARE FOR THE LOWERWAGE WORKERS A MAJOR DISADVANTAGE OF THE ALTERNATIVE APPROACH REQUIRING ALL EMPLOYERS TO PROVIDE HEALTH COVERAGE IS THAT IT COULD HIT EMPLOYERS OF LOWWAGE WORKERS PARTICULARLY HARD THE POSSIBILITY OF A PAYROLL TAX WAS FIRST REPORTED YESTERDAY BY USA TODAY THE WHITE HOUSE HAS MADE NO FINAL DECISIONS WHETHER TO PROCEED WITH THE PAYROLL TAX OR IF IT DOES HOW HIGH TO SET THE LEVY CURRENT PAYROLL TAXES WHICH AMOUNT TO 153 OF MOST PEOPLE'S WAGES AND ARE SPLIT EVENLY BETWEEN EMPLOYERS AND EMPLOYEES RAISE ABOUT 435 BILLION A YEAR THE PAYROLLTAX PLAN BEING CONSIDERED BY THE WHITE HOUSE APPEARS TO RESEMBLE A PLAN PROPOSED LAST YEAR FOR CALIFORNIA BY JOHN GARAMENDI THE STATE'S INSURANCE COMMISSIONER MR GARAMENDI'S TOP AIDE WALTER ZELMAN IS A HIGHRANKING ADVISER TO THE CLINTON HEALTHCARE TASK FORCE ADMINISTRATION OFFICIALS HAVE TOLD OUTSIDERS THAT ANY PAYROLL TAX IS SURE TO BE ACCOMPANIED BY SUBSIDIES OR OTHER RELIEF FOR SMALL EMPLOYERS AND INDIVIDUALS THAT COULDN'T AFFORD TO PAY THE FULL AMOUNT THE GARAMENDI PROPOSAL WHICH IS PENDING BEFORE THE CALIFORNIA LEGISLATURE FEATURES AN 775 TAX THAT WOULD BE SHARED BY EMPLOYERS AND EMPLOYEES BUT WOULDN'T APPLY TO THE FIRST 10000 OF A COMPANY'S PAYROLL THAT WOULD GIVE SMALL BUSINESSES A BREAK IN ADDITION THE GARAMENDI PLAN WOULD EXEMPT AN EMPLOYEE'S FIRST 5000 IN EARNINGS AND ANY INCOME OVER 150000 EVEN IF THE ADMINISTRATION GOES AHEAD WITH A PAYROLL TAX IT ISN'T LIKELY TO RAISE ALL THE REVENUE NEEDED TO FUND ITS OVERHAUL OF THE HEALTHCARE SYSTEM ADDITIONAL TAXES ARE THEREFORE PROBABLE ESPECIALLY ON CIGARETTES AND ALCOHOL 9304300021 930430 CLINTON NAMES SIX TO BE ASSISTANT ATTORNEYS GENERAL BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MOVING TO FILL VACANCIES IN HIS ADMINISTRATION ON HIS 100TH DAY IN OFFICE PRESIDENT CLINTON NAMED SIX PEOPLE TO HIGH JUSTICE DEPARTMENT POSTS THE SIX ALL SELECTED TO BE ASSISTANT ATTORNEYS GENERAL ARE ANN BINGAMAN A WASHINGTON LAWYER CHOSEN TO HEAD THE DEPARTMENT'S ANTITRUST DIVISION WHO HAS WORKED AS A PLAINTIFFS ANTITRUST ATTORNEY ELEANOR DEAN ACHESON FOR THE OFFICE OF POLICY DEVELOPMENT SHE IS A PARTNER IN A BOSTON LAW FIRM AND WENT TO COLLEGE WITH HILLARY RODHAM CLINTON SHEILA ANTHONY LEGISLATIVE AFFAIRS SHE IS A BOARD MEMBER OF THE WASHINGTON CENTER A NONPROFIT ORGANIZATION THAT WORKS WITH STUDENTS AND DESCRIBED HERSELF AS A LONGTIME FRIEND AND SUPPORTER OF THE PRESIDENT WALTER DELLINGER OFFICE OF LEGAL COUNSEL MR DELLINGER IS ASSOCIATE COUNSEL TO THE PRESIDENT AND PREVIOUSLY WAS A DUKE UNIVERSITY LAW SCHOOL PROFESSOR LANI GUINIER TO HEAD THE CIVIL RIGHTS DIVISION SHE IS A UNIVERSITY OF PENNSYLVANIA LAW PROFESSOR WHO WORKED IN THE DIVISION UNDER PRESIDENT CARTER SHE JOINED THE NAACP LEGAL DEFENSE FUND IN 1981 AND HEADED THE VOTING RIGHTS PROJECT FRANK HUNGER FOR THE CIVIL DIVISION HE IS A PARTNER IN A GREENVILLE MISS LAW FIRM THAT DOES CORPORATE DEFENSE WORK MR HUNGER IS THE BROTHERINLAW OF VICE PRESIDENT AL GORE ALONG WITH THE SIX NOMINEES AT A JUSTICE DEPARTMENT CEREMONY ATTENDED BY MR CLINTON AND ATTORNEY GENERAL JANET RENO GERALD TORRES WAS INTRODUCED AS THE PRESIDENT'S CHOICE FOR ASSISTANT ATTORNEY GENERAL FOR THE ENVIRONMENT AND NATURAL RESOURCES MR TORRES WHOSE NOMINATION WILL BE OFFICIAL AFTER THE SUCCESSFUL COMPLETION OF A BACKGROUND CHECK HAS TAUGHT AT THE UNIVERSITY OF MINNESOTA THE UNIVERSITY OF TEXAS AND HARVARD LAW SCHOOL MS BINGAMAN ISN'T WELLKNOWN AMONG ANTITRUST LAWYERS BUT HER APPOINTMENT NONETHELESS DREW PRAISE FROM FORMER BUSH ADMINISTRATION ANTITRUST OFFICIALS JAMES RILL WHO HELD THE POSITION SHE SEEKS SAID SHE IS VERY SAVVY VERY QUICK TO LEARN THINGS HE ADDED THAT THE CLINTON ADMINISTRATION WAS SMART TO APPOINT SOMEONE WHO UNDERSTANDS THE DYNAMICS OF LITIGATION AND LITIGATION MANAGEMENT DURING A NEWS CONFERENCE MS ACHESON SAID SHE THAT IN FEBRUARY SHE PAID ABOUT 4500 IN BACK SOCIAL SECURITY TAXES AND PENALTIES FOR A DOCUMENTED HOUSEHOLD WORKER SHE HAD EMPLOYED SINCE JULY 1985 ISSUES CONCERNING THE PAYMENT OF SOCIAL SECURITY TAXES FOR HOUSEHOLD HELP RESULTED IN THE WITHDRAWAL OF MR CLINTON'S FIRST NOMINEE FOR ATTORNEY GENERAL EARLIER THIS YEAR MS ACHESON SAID THE PRESIDENT AND ATTORNEY GENERAL RENO WERE AWARE OF HER FEBRUARY PAYMENT AND FELT IT WOULD NOT BE AN IMPEDIMENT TO HER CONFIRMATION 9304300020 930430 WANG LABS REPORTS LOSS OF 872 MILLION FOR FISCAL 3RD QUARTER LOWELL MASS WANG LABORATORIES INC REPORTED A FISCAL THIRDQUARTER LOSS OF 872 MILLION OR 51 CENTS A SHARE LARGELY REFLECTING A 103 MILLION RESTRUCTURING CHARGE RELATED TO THE COMPANY'S REORGANIZATION PLAN TO EMERGE FROM BANKRUPTCYCOURT PROCEEDINGS THE CHARGE WAS PARTIALLY OFFSET BY A 272 MILLION GAIN FROM THE SALE OF THE COMPANY'S TAIWAN AND AUSTRIA SUBSIDIARIES IN THE YEARAGO QUARTER WANG HAD A NET LOSS OF 63 MILLION OR FOUR CENTS A SHARE AFTER A PRETAX GAIN OF 294 MILLION FROM THE SALE OF ASSETS AND CHANGES IN THE FIRM'S PENSION PLAN EXCLUDING RESTRUCTURING AND OTHER UNUSUAL ITEMS WANG SAID THE OPERATING LOSS FOR THE QUARTER ENDED MARCH 31 WAS 175 MILLION THAT COMPARES WITH A LOSS OF 23 MILLION IN THE PRIOR YEAR'S QUARTER THIRDQUARTER REVENUE DECLINED 36 TO 2948 MILLION FROM 4608 MILLION IN THE SAME PERIOD A YEAR AGO ONCE A COMPUTER MANUFACTURER WITH 3 BILLION IN ANNUAL REVENUES WANG'S NEW STRATEGY IS TO OPERATE AS A MUCH SMALLER COMPANY CONCENTRATING ON DEVELOPING SOFTWARE AND WORKING WITH CLIENTS TO INTEGRATE ITS OFFICE COMPUTERS WANG SAID BASED ON CURRENT BUSINESS LEVELS AND INDUSTRY CONDITIONS IT CONTINUES TO EXPECT FISCAL 1993 REVENUES TO REACH 125 BILLION TO 13 BILLION AND APPROXIMATELY 1 BILLION THE FOLLOWING FISCAL YEAR MEANWHILE THE COMPANY SAID IT CONTINUES TO CUT COSTS WANG WHICH LAST MONTH ANNOUNCED IT WOULD CUT STAFF BY 33 TO 6300 FROM 9300 SAID IT FIRED 1500 WORKERS IN THE LAST MONTH FOR THE NINE MONTHS THE COMPANY REPORTED A LOSS OF 1534 MILLION OR 90 CENTS A SHARE COMPARED WITH A LOSS OF 229 MILLION OR 14 CENTS A SHARE FOR THE SAME PERIOD LAST YEAR REVENUE DROPPED 28 TO 1 BILLION FROM 14 BILLION 9304300019 930430 YOUR MONEY MATTERS WEEKEND REPORT BONDS VS BOND FUNDS WHICH ARE BETTER FOR YOU BY TOM HERMAN STAFF REPORTER OF THE WALL STREET JOURNAL BONDS OR BOND FUNDS YIELDSTARVED INVESTORS ARE POURING HUGE AMOUNTS OF MONEY INTO BOND MUTUAL FUNDS THESE DAYS 299 BILLION IN JUST THE FIRST THREE MONTHS OF THIS YEAR UP 24 FROM THE SAME PERIOD IN 1992 BY THE END OF MARCH THE LATEST MONTH FOR WHICH FIGURES ARE AVAILABLE THE MONEY IN BOND FUNDS TOTALED A RECORD 622 BILLION MORE THAN EITHER STOCK OR MONEYMARKET FUNDS ACCORDING TO THE INVESTMENT COMPANY INSTITUTE BUT MANY BONDFUND INVESTORS WOULD BE BETTER OFF TAKING A MORE DIRECT APPROACH BUYING THE BONDS DIRECTLY IF THEY CAN AFFORD TO HOLD THEM UNTIL MATURITY MUTUAL FUNDS HAVE MANY STRONG POINTS OF COURSE THEY OFFER PROFESSIONAL MANAGEMENT AND BROAD DIVERSIFICATION THEY ARE ALSO EASY TO BUY AND SELL EVEN IN SMALL AMOUNTS AND IN THE CASE OF MANY TYPES OF BONDS SUCH AS CORPORATE MORTGAGEBACKED AND FOREIGN SECURITIES FUNDS FREQUENTLY ARE THE ONLY PRACTICAL WAY FOR THE TYPICAL PERSON TO INVEST BECAUSE OF THE COMPLEXITY OF THE BONDS OR THE LARGE MINIMUM SIZE OF THE INVESTMENT REQUIRED TO BUY INDIVIDUAL BONDS YET A SIZABLE CHUNK OF THE MONEY POURING INTO BOND FUNDS IS GOING INTO FUNDS THAT INVEST IN US GOVERNMENT SECURITIES THE EASIEST BONDS FOR AN INDIVIDUAL TO BUY AND SELL YOU CAN EVEN GET THEM RIGHT FROM THE GOVERNMENT WITHOUT A BROKER AND WITHOUT A COMMISSION AND WITHOUT HAVING TO WORRY ABOUT DOING EXTENSIVE CREDIT ANALYSIS AND RESEARCH I SIMPLY CAN'T UNDERSTAND WHY ANYONE PUTS MONEY IN A GOVERNMENT BOND FUND SAYS PETER LYNCH ONE OF THE NATION'S BESTKNOWN MONEY MANAGERS AND A FORMER HEAD OF FIDELITY'S HUGE MAGELLAN FUND SOME PEOPLE WHO INVEST IN TAXFREE MUNICIPAL BOND FUNDS ALSO MIGHT BE BETTER OFF BUYING AT LEAST SOME INDIVIDUAL BONDS ALTHOUGH THE PROCESS OFTEN CAN BE CONSIDERABLY MORE COMPLICATED THAN BUYING TREASURYS THE ATTITUDE THAT BOND FUNDS ARE THE ONLY WAY TO GO IS OVERSTATED SAYS DON PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS A CHICAGO FIRM THAT TRACKS MUTUAL FUND PERFORMANCE INDIVIDUALS SHOULD NOT RULE OUT THE POSSIBILITY OF BUYING INDIVIDUAL BONDS ESPECIALLY GOVERNMENT BONDS BY INVESTING IN INDIVIDUAL BONDS YOU AVOID MUTUAL FUND EXPENSES THAT EAT INTO YOUR RETURNS EVEN NOLOAD FUNDS THOSE THAT DON'T CHARGE SALES COMMISSIONS OR FEES HAVE OPERATING EXPENSES ON AVERAGE TAXABLE BOND FUNDS CHARGED 089 PERCENTAGE POINT FOR EXPENSES LAST YEAR WHILE TAXFREE BOND FUNDS CHARGED 076 PERCENTAGE POINT SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS MOREOVER WHEN YOU BUY BONDS DIRECTLY AND HANG ON TO THEM UNTIL THEY MATURE YOU DON'T HAVE TO WORRY ABOUT HOW INTEREST RATE SWINGS ARE AFFECTING THE VALUE OF YOUR INVESTMENT BOND PRICES RISE WHEN INTEREST RATES DECLINE AND FALL WHEN INTEREST RATES GO UP AS A RESULT THE VALUE OF A BOND FUND'S SHARES RISES AND FALLS EACH DAY JUST AS STOCKMARKET FUND SHARES MOVE WITH THE STOCK MARKET AT A TIME WHEN SOME PROFESSIONAL INVESTORS AND ANALYSTS ARE STARTING TO FRET THAT THE NEXT MOVE IN INTEREST RATES WILL BE UP NOT DOWN PEOPLE WHO PLUNGE INTO BOND FUNDS ESPECIALLY THOSE WITH LARGE AMOUNTS OF LONGTERM BONDS RISK A COLD DISAPPOINTMENT IF AND WHEN INTEREST RATES DO RISE BOND PRICES WILL TUMBLE AND THE VALUE OF THE BOND FUNDS INVESTORS ARE BUSILY SNAPPING UP TODAY WILL FALL THAT IS TRUE EVEN IN THE CASE OF BOND FUNDS THAT ADVERTISE THAT THEIR HOLDINGS ARE GOVERNMENTGUARANTEED THE GUARANTEE APPLIES TO THE RISK OF DEFAULT ON THE BONDS THEMSELVES NOT THE MARKET VALUE OF YOUR INVESTMENT TREASURYS PRESENT THE CLEAREST CASE FOR BUYING INDIVIDUAL BONDS THERE IS NO NEED FOR SOPHISTICATED CREDIT ANALYSIS AND YOU DON'T NEED TO WORRY ABOUT ANY NEWLY ISSUED TREASURY SECURITIES BEING CALLED OR REDEEMED BEFORE MATURITY INVESTORS WHO KNOW THEY WILL FACE A BIG EXPENSE ON A CERTAIN DATE SUCH AS A CHILD'S SCHOOL BILL CAN BUY A TREASURY BOND SCHEDULED TO COME DUE RIGHT AROUND THAT DAY SAYS MARY C FARRELL SENIOR VICE PRESIDENT AT PAINEWEBBER INC AND BUYING TREASURYS IS SO SIMPLE THAT YOU TYPICALLY DON'T NEED TO USE AN INTERMEDIARY OR PROFESSIONAL MANAGEMENT SHE SAYS TO BUY TREASURY BILLS NOTES OR BONDS DIRECTLY FROM UNCLE SAM CALL YOUR NEAREST FEDERAL RESERVE BANK OR BRANCH AND ASK FOR DETAILS ON THE TREASURY DIRECT PROGRAM OR CALL THE TREASURY ITSELF 2028744000 US SAVING BONDS WHICH CAN BE PURCHASED FOR AS LITTLE AS 25 FOR A BOND WITH A 50 FACE AMOUNT ARE AVAILABLE WITH NO FEE THROUGH MOST BANKS AND FINANCIAL INSTITUTIONS A WORD OF CAUTION THE TREASURY DIRECT SYSTEM IS DESIGNED FOR INVESTORS WHO PLAN TO BUY AND HOLD THEIR SECURITIES UNTIL MATURITY A FEDERAL RESERVE SPOKESMAN SAYS THE SYSTEM ISN'T DESIGNED FOR INVESTORS WHO MIGHT NEED TO SELL THEIR TREASURY HOLDINGS BEFORE THE ISSUES COME DUE THE SPOKESMAN SAID IT IS POSSIBLE TO DO SO BUT MORE CUMBERSOME THAN IF YOU HAD PURCHASED THE SECURITIES THROUGH A DEALER THE CASE FOR BUYING INDIVIDUAL MUNICIPAL BONDS IS LESS CLEARCUT THAN THE ONE FOR TREASURYS TAXFREE BONDS TYPICALLY ARE SOLD IN MINIMUM AMOUNTS OF 5000 ALTHOUGH SOME ISSUES KNOWN AS BABY BONDS ARE AVAILABLE IN SMALLER AMOUNTS BUT CREDIT QUALITY DOES VARY FROM ISSUER TO ISSUER AND YOU TYPICALLY DO HAVE TO BE CONCERNED ABOUT THE RISK OF AN EARLY CALL AT THE SAME TIME BUYING AND SELLING MUNICIPAL BONDS CAN BE COMPLICATED THE MARKET OFTEN RESEMBLES SHOPPING IN A MIDDLE EASTERN BAZAAR WITH PRICES THAT CAN VARY WIDELY FROM MERCHANT TO MERCHANT INVESTORS TRYING TO SELL 5000 BLOCKS OF THINLY TRADED MUNICIPAL BONDS AREN'T LIKELY TO GET AS GOOD A PRICE AS THEY WOULD FOR LARGER BLOCKS OF BONDS OF A WELLKNOWN ISSUER STILL IF YOU HAVE AT LEAST 25000 OR 50000 TO INVEST AND CAN AFFORD TO HOLD ON FOR THE LONG HAUL BUYING INDIVIDUAL BONDS CAN DEFINITELY MAKE SENSE SAYS PHILIP SIMONETTI SENIOR VICE PRESIDENT AT LEHMAN BROTHERS ONE OF THE EASIEST WAYS TO INVEST DIRECTLY IS TO BUY NEW MUNICIPAL ISSUES BECAUSE PRICE MARKUPS TYPICALLY ARE SMALLER THAN IN RESALE MARKETS WHEN IS IT A GOOD IDEA TO STICK WITH FUNDS THE BIG ADVANTAGE TO BUYING BOND FUNDS IS CONVENIENCE SAYS MORNINGSTAR'S MR PHILLIPS HE POINTS TO SUCH FEATURES AS AUTOMATIC REINVESTMENT OF DIVIDENDS CHECKWRITING PRIVILEGES AND THE ABILITY TO BUY IN WHATEVER DOLLAR AMOUNTS YOU WANT MINIMUM INVESTMENTS ALSO ARE GENERALLY SMALLER THAN THOSE REQUIRED TO BUY INDIVIDUAL BONDS EVEN IN THE CASE OF TREASURYS INVESTORS WITH RELATIVELY SMALL AMOUNTS OF SPARE CASH TYPICALLY CAN'T BUY INDIVIDUAL BONDS INVESTORS NEED AT LEAST 5000 TO BUY TREASURY NOTES DUE IN TWO OR THREE YEARS AND AT LEAST 1000 FOR NOTES AND BONDS DUE IN FIVE YEARS OR MORE BECAUSE TREASURY SECURITIES ARE SOLD IN ADDITIONAL INCREMENTS OF 1000 AN INVESTOR WITH 5899 TO INVEST COULD BUY 5000 OF TWOYEAR TREASURY NOTES FROM THE FED BUT THE INVESTOR COULD PUT ALL 5899 INTO A BOND FUND SOME TYPES OF BOND FUNDS OFFER IMPORTANT ADVANTAGES OVER BUYING INDIVIDUAL BONDS MR LYNCH ACKNOWLEDGES YOU CAN MAKE A HALFWAY DECENT CASE FOR INVESTING IN A BOND FUND THAT HOLDS A MIXTURE OF GOVERNMENT CORPORATE AND MORTGAGEBACKED BONDS THAT TYPE OF FUND CAN ENABLE YOU TO EARN A HIGHER YIELD THAN BY BUYING A SINGLE TREASURY BOND FOR THE AVERAGE INDIVIDUAL INVESTOR SEARCHING FOR HIGH YIELDS AMONG CORPORATE OR MUNICIPAL JUNK BONDS THOSE WITH LOW CREDIT RATINGS OR NO RATINGS AT ALL BOND FUNDS ARE VIRTUALLY A MUST INVESTMENT ADVISERS SAY FUNDS OFFER WIDESPREAD DIVERSIFICATION THUS REDUCING THE CHANCES THAT AN INVESTOR WILL BE BURNED BY AN UNEXPECTED DEFAULT ALSO PLAYING THE JUNKBOND MARKET REQUIRES EXPERTISE AND ACCESS TO INFORMATION THAT AVERAGE INVESTORS EITHER DON'T HAVE OR DON'T HAVE THE TIME AND RESOURCES TO OBTAIN IF YOU'RE DEALING WITH CORPORATES WHERE CREDIT ISSUES ARE A MAJOR CONCERN AND DIVERSIFICATION AND PROFESSIONAL MANAGEMENT ARE MORE IMPORTANT THEN IT MAY MAKE SENSE FOR MOST INVESTORS TO OPT FOR THE MUTUAL FUND MR PHILLIPS SAYS BOND FUNDS COME IN ESPECIALLY HANDY IF SOMETHING UNEXPECTED HAPPENS AND YOU HAVE TO PULL YOUR MONEY OUT IN A HURRY SAYS ALBERT J FREDMAN PROFESSOR OF FINANCE AT CALIFORNIA STATE UNIVERSITY FULLERTON IN SOME INSTANCES INVESTORS MAY FIND IT ADVANTAGEOUS TO TRAVEL BOTH ROUTES BUY GOVERNMENT BONDS DIRECTLY AND REINVEST SMALL AMOUNTS OF INTEREST INCOME IN A BOND FUND OR GROUP OF FUNDS REINVESTMENT OF SMALLER AMOUNTS IN INDIVIDUAL BONDS IF IT'S EVEN POSSIBLE IS GENERALLY COSTLY AND CUMBERSOME MR FREDMAN WROTE IN THE APRIL ISSUE OF THE MAGAZINE OF THE AMERICAN ASSOCIATION OF INDIVIDUAL INVESTORS THUS HE CONCLUDED IT OFTEN MAKES SENSE TO USE FUNDS ALONG WITH BONDS 9304300018 930430 MONEY FUND ASSETS FELL IN LATEST WEEK WASHINGTON MONEY MARKET MUTUAL FUND ASSETS FELL BY 661 BILLION TO 58327 BILLION FROM 58988 BILLION FOR THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 631 RETAIL MONEY MARKET MUTUAL FUNDS DECREASED BY 336 BILLION TO 38826 BILLION THE TRADE GROUP SAID ASSETS OF 395 TAXABLE MONEY MARKET FUNDS IN THE RETAIL CATEGORY FELL BY 253 BILLION TO 30804 BILLION ASSETS OF 236 RETAIL TAXEXEMPT FUNDS FELL BY 8217 MILLION TO 8022 BILLION ASSETS OF THE 261 INSTITUTIONAL MONEY MARKET FUNDS DECREASED BY 326 BILLION TO 195 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 212 TAXABLE MONEY MARKET FUNDS FELL BY 258 BILLION TO 176 BILLION ASSETS OF 49 TAXEXEMPT FUNDS FELL BY 6756 MILLION TO 1901 BILLION 9304300017 930430 PEPPERAND SALT OF THAT THERE IS NO DOUBT I LAUGH AT MANY A BLOOPER I KNOW WHAT A JOKE'S ABOUT BUT IT'S THE LAST LINE THAT I RUIN 9304300016 930430 INTERNATIONAL FRENCH JOB PICTURE WORSENS PARIS THE NUMBER OF FRENCH JOB SEEKERS ROSE 14 IN MARCH FROM FEBRUARY TO A SEASONALLY ADJUSTED 307 MILLION PEOPLE THE FRENCH LABOR MINISTRY ANNOUNCED THE UNEMPLOYMENT RATE ROSE SLIGHTLY TO 107 FROM 106 THE CENTERRIGHT GOVERNMENT THAT TOOK OFFICE LAST MONTH WARNED THAT JOBLESSNESS IS LIKELY TO CONTINUE RISING THROUGH 1993 THE GOVERNMENT HOPES TO ENGINEER A DECLINE IN UNEMPLOYMENT BY 1994 THE MINISTRY SAID THE NUMBER OF CHRONICALLY UNEMPLOYED WHO HAVE BEEN RECEIVING UNEMPLOYMENT ASSISTANCE FOR OVER ONE YEAR INCREASED 12 TO 916300 MEANWHILE THE NUMBER OF JOB OFFERS FELL 7 TO 78400 THE MINISTRY SAID 9304300015 930430 TROUBLED CARRIERS ABSENT FROM PANEL TO STUDY AIRLINES BY BRUCE INGERSOLL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE 15MEMBER COMMISSION ON THE AILING AIRLINE INDUSTRY JUST TOOK OFF WITHOUT A SINGLE MEMBER FROM THE NATION'S TROUBLED AIRLINES ON BOARD EVEN THE BIG THREE AMR CORP'S AMERICAN AIRLINES UAL CORP'S UNITED AIR LINES AND DELTA AIR LINES WERE SHUT OUT WHEN THE WHITE HOUSE ANNOUNCED THE MEMBERSHIP OF THE BIPARTISAN COMMISSION WHICH WAS CREATED A MONTH AGO BY CONGRESS TO MAKE RECOMMENDATIONS FOR REVIVING THE US AEROSPACE AND AIRLINE INDUSTRIES UNDER THE LAW PRESIDENT CLINTON THE HOUSE AND THE SENATE WERE EACH EMPOWERED TO NAME FIVE MEMBERS MR CLINTON FILLED TWO SLOTS WITH REPRESENTATIVES FROM PROFITABLE CARRIERS HERBERT KELLEHER CHIEF EXECUTIVE OFFICER OF SOUTHWEST AIRLINES AND GINA THOMAS A SENIOR ATTORNEY FOR FEDERAL EXPRESS CORP THE SENATE LEADERSHIP NAMED TWO AEROSPACE EXECUTIVES ROBERT DANIELL CHIEF EXECUTIVE OFFICER OF UNITED TECHNOLOGIES CORP AND RUSSELL W MEYER JR CHAIRMAN OF CESSNA AIRCRAFT CO WHILE HOUSE LEADERS NAMED J RANDOLPH BABBITT PRESIDENT OF THE AIR LINE PILOTS ASSOCIATION AND JOHN PETERPAUL VICE PRESIDENT OF THE INTERNATIONAL ASSOCIATION OF MACHINISTS AS LABOR'S REPRESENTATIVES THE AIRLINE INDUSTRY'S MINIMAL REPRESENTATION IS BOUND TO RANKLE AIRLINE EXECUTIVES WHO LOBBIED FOR SEATS ON THE PANEL JAMES LANDRY PRESIDENT OF THE AIR TRANSPORT ASSOCIATION PRAISED THE CHOICE OF MR KELLEHER AND MS THOMAS BUT LAMENTED THE OMISSION OF OTHER AIRLINE REPRESENTATIVES THE INDUSTRY SHOULD HAVE GOTTEN SOME MORE SEATS FOR OTHER CARRIERS WHO ARE SUFFERING THROUGH THIS CRISIS HE ASSERTED THE INDUSTRY IS DEEPLY DIVIDED OVER HOW BEST TO PROCEED PARTLY FOR THIS REASON PRESIDENT CLINTON NAMED FORMER VIRGINIA GOV GERALD BALILES AS CHAIRMAN HE IS WIDELY ADMIRED FOR HIS POLITICAL SKILLS AT RECONCILING CONFLICTING VIEWS ALSO NAMED WERE SYLVIA DE LEON A WASHINGTON LAWYER AND MEMBER OF THE TRANSPORTATION TRANSITION TEAM BETTE ANDERSON PRESIDENT OF KELLY ANDERSON & ASSOCIATES WASHINGTON CHARLES BARCLAY PRESIDENT OF THE AMERICAN ASSOCIATION OF AIRPORT EXECUTIVES FELIX ROHATYN MANAGING PARTNER OF LAZARD FRERES & CO NEW YORK ABRAHAM SOFAER A WASHINGTON LAWYER SANDRA PIANALTO FIRST VICE PRESIDENT OF THE FEDERAL RESERVE BANK CLEVELAND JOHN ROBSON FORMER DEPUTY TREASURY SECRETARY AND DANIEL KASPER A BOSTON TRANSPORTATION CONSULTANT 9304300014 930430 INTERNATIONAL TELMEX AUTHORIZES BUYBACK MEXICO CITY MOVING TO STAUNCH A SELLOFF PROVOKED BY DISAPPOINTING FIRSTQUARTER EARNINGS TELEFONOS DE MEXICO SA SAID ITS BOARD AUTHORIZED A STOCK BUYBACK VALUED AT AS MUCH AS 300 MILLION NEWS OF THE REPURCHASE PLAN IMMEDIATELY REVERSED A TWODAY DECLINE IN THE TELEPHONE MONOPOLY'S STOCK TELMEX'S AMERICAN DEPOSITARY SHARES CLOSED AT 48 UP 50 CENTS ON THE NEW YORK STOCK EXCHANGE AFTER HAVING BEEN DOWN AS FAR AS 3 ON THE DAY LATE TUESDAY TELMEX REPORTED A 43 DECLINE IN FIRSTQUARTER NET INCOME TO 6526 MILLION OR 123 PER ADS ADJUSTED FOR MEXICO'S INFLATIONARY ACCOUNTING UNDERLYING EARNINGS INCREASED 85 TO 659 MILLION OR 124 PER ADS 9304300013 930430 BIG BOARD CITES TWO CONCERNS 15 INDIVIDUALS EXCHANGE ASSESSES FINES IMPOSES SUSPENSIONS FOR VIOLATIONS OF RULES BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NEW YORK STOCK EXCHANGE SAID IT TOOK DISCIPLINARY ACTION AGAINST TWO FIRMS AND 15 INDIVIDUALS FOR VIOLATIONS OF EXCHANGE RULES AND FEDERAL SECURITIES LAWS UBS SECURITIES INC NEW YORK WAS FINED 25000 WITHOUT ADMITTING OR DENYING THAT IT ENTERED INTO AN ARRANGEMENT WITH CERTAIN CUSTOMERS DURING AN INITIAL PUBLIC OFFERING TO CREATE THE APPEARANCE OF WIDEENOUGH DISTRIBUTION OF THE SECURITIES TO SATISFY FEDERAL PENSION FUND INVESTMENT REGULATIONS CUSTOMERS AGREED TO BUY SOME OF THE SECURITIES WITH THE UNDERSTANDING THAT THEY WOULD BE SOLD BACK TO THE FIRM BY THE CUSTOMER AND THAT EACH CUSTOMER WAS GUARANTEED AGAINST LOSS THE BIG BOARD SAID THAT TWO UBS EXECUTIVES WERE TERMINATED FOLLOWING INVESTIGATION OF THE INCIDENT WHICH INVOLVED CERTIFICATES BACKED BY CREDITCARD RECEIVABLES UBS AN AFFILIATE OF UNION BANK OF SWITZERLAND SAID THE EVENT OCCURRED A YEAR AND A HALF AGO THE FIRM REPORTED THE PROBLEM TO THE EXCHANGE AND SAID UBS WAS THE VICTIM OF THE CONDUCT OF ITS FORMER EMPLOYEES THE FINDING DOES NOT AFFECT ADVERSELY OUR ONGOING OPERATIONS THE COMPANY SAID JA CELENTANO SECURITIES CORP ARMONK NY WAS FINED 25000 IT DIDN'T ADMIT OR DENY ALLEGATIONS THAT IT FAILED TO MAINTAIN ACCURATE BOOKS AND RECORDS AND THAT IT INACCURATELY COMPUTED NET CAPITAL AMONG OTHER VIOLATIONS IN A RELATED CASE JOSEPH A CELENTANO SOLE STOCKHOLDER OF THE FIRM WAS CENSURED BASED ON FINDINGS THAT HE FAILED TO DEPOSIT FLOOR COMMISSIONS TO HIS FIRM'S ACCOUNT AND SIGNED INACCURATE FINANCIAL REPORTS AMONG OTHER VIOLATIONS HE DIDN'T ADMIT OR DENY THE CHARGES UNLESS OTHERWISE NOTED THE PARTIES COULDN'T BE REACHED OR HAD NO COMMENT GARY ROTH NEW YORK WAS SUSPENDED FOR 30 DAYS FOR INDECOROUS FLOOR CONDUCT AND OFFENSIVELY TOUCHING AN EMPLOYEE OF A MEMBER FIRM WHILE SHE WAS WORKING ON THE TRADING FLOOR MR ROTH A FORMER OPTIONS TRADING RIGHTS HOLDER HAD BEEN FOUND NOT GUILTY AFTER A CONTESTED HEARING THE HEARING PANEL HAD SAID THE 1990 INCIDENTS INVOLVING BANTERING AND BRUSHING UP AGAINST THE FEMALE EMPLOYEE WERE AMBIGUOUS THE EXCHANGE'S BOARD REVERSED THE HEARING PANEL'S DECISION FINDING MORE THAN AMPLE EVIDENCE FOR THE FINDING SHAUN PAUL CORCORAN SWAMPSCOTT MASS A FORMER BROKER WAS BARRED FOR FOUR YEARS FOR AGREEING TO GUARANTEE A CUSTOMER AGAINST A LOSS AMONG OTHER VIOLATIONS THOMAS SHOR BROOKLYN NY A FORMER NONREGISTERED EMPLOYEE WAS BARRED FOR 30 MONTHS HE DIDN'T ADMIT OR DENY CHARGES THAT HE ALLOWED TRANSACTIONS FOR AN INDIVIDUAL TO BE CARRIED IN A FIRM ACCOUNT WITHOUT PERMISSION AND ENTERED FICTITIOUS TRANSACTIONS ON THE BOOKS ALAN ARTHUR SARETSKY HAMPTON BAYS NY A FORMER BROKER WAS BARRED FOR 23 MONTHS HE DIDN'T ADMIT OR DENY HE ENTERED EXCESSIVE TRADES FOR CUSTOMERS FAILED TO FOLLOW CUSTOMERS' INSTRUCTIONS AND ENTERED UNSUITABLE TRADES FOR A CUSTOMER AMONG OTHER VIOLATIONS JON JOSEPH VARGO SECAUCUS NJ A FORMER BROKER WAS BARRED FOR EIGHT MONTHS WITHOUT ADMITTING OR DENYING THAT HE MADE UNAUTHORIZED TRADES AND FAILED TO FOLLOW CUSTOMER INSTRUCTIONS DAVID KARCHER CEDARBURG WIS A FORMER BROKER WAS BARRED FOR SIX MONTHS HE DIDN'T ADMIT OR DENY THAT HE MADE UNAUTHORIZED TRADES IN A CUSTOMER'S ACCOUNT JEFFREY WILGUS BOSTON AFTER A CONTESTED HEARING WAS SUSPENDED FOR TWO MONTHS AND ORDERED TO RECEIVE 12 MONTHS OF ADDITIONAL SUPERVISION FOR EXCESSIVE TRADING IN CUSTOMER ACCOUNTS AND EXERCISING DISCRETIONARY POWER WITHOUT PROPER APPROVAL ISAAC FRANKLIN STEVENS HEREFORD TEXAS A BROKER WAS FINED 5000 AND SUSPENDED FOR 30 DAYS AFTER A CONTESTED HEARING HE WAS FOUND GUILTY OF MAKING UNSUITABLE TRANSACTIONS FIVE PEOPLE WERE BARRED PERMANENTLY FOR MISAPPROPRIATION AND OTHER VIOLATIONS GALE DENNIS GARVIN WASHINGTON DC MARY MICHAELINE PORTER BUFFALO NY ANTHONY PALMBY EDEN PRAIRIE MINN DOROTHY BENJAMIN HUTSON HOUSTON AND SYLVIA WIGGINS DUBLIN CALIF JEROME P SANDHAUS SPRING VALLEY NY WAS BARRED UNTIL HE RESPONDS TO REQUESTS FOR INFORMATION 9304300012 930430 POLITICS & POLICY CLINTON MAY NOT RECOGNIZE SOME OF HIS TAX PLAN BY THE TIME DEMOCRATS IN CONGRESS FINISH WITH IT BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON WILL ALMOST SURELY GET HIS TAX BILL THIS YEAR THE QUESTION IS JUST HOW MUCH OF IT HE WILL RECOGNIZE WHILE THE REPUBLICANS KILLED HIS SPENDING PACKAGE IT'S HIS FELLOW DEMOCRATS THAT MR CLINTON HAS TO WORRY ABOUT ON THE HIGHERSTAKES TAX BILL GIVEN THE DEMANDS OF DEFICIT REDUCTION THEY'RE LIKELY TO PRODUCE SOMETHING THAT ABOUT MATCHES THE SIZE OF THE PRESIDENT'S PACKAGE A NET TAX INCREASE OF ABOUT 273 BILLION OVER FIVE YEARS MOREOVER THERE'S LITTLE DISPUTE ABOUT SOME OF THE KEY ELEMENTS OF HIS PROPOSAL SUCH AS HIGHER INCOMETAX RATES FOR THE WEALTHY BUT THE FINAL BILL WILL DIFFER IN SEVERAL KEY RESPECTS FROM MR CLINTON'S PLAN OWING TO GRIPES ABOUT ITS PARTICULARS FROM HIS OWN PARTY THE PRESIDENT THEN MUST DECIDE WHETHER HE GOES TO THE MAT FOR HIS PROPOSALS OR WHETHER AS SOMEONE WHO HAS STUDIED RONALD REAGAN'S SUCCESSFUL FIRST YEAR HE WILL FOLLOW MR REAGAN'S 1981 EXAMPLE OF ACCEPTING A REWRITTEN BILL AND DECLARING VICTORY YESTERDAY THE PRESIDENT MADE A SPECIAL PLEA TO PRESERVE HIS PROPOSED INVESTMENT TAX CREDITS FOR BIG AND SMALL BUSINESSES DURING A WHITE HOUSE SESSION WITH DEMOCRATS FROM THE HOUSE WAYS AND MEANS COMMITTEE BUT THE CREDIT IS A DEAD LETTER ON CAPITOL HILL AND THOSE SAME LAWMAKERS HAVE BEGUN DEVISING ALTERNATIVE WAYS TO BENEFIT BUSINESS FOR THE SAME COST AS THE INVESTMENT TAX CREDIT ONE SUBSTITUTE UNDER DISCUSSION CALLS FOR HOLDING DOWN MR CLINTON'S PROPOSED CORPORATE RATE BOOST DROPPING HIS PROPOSED INCREASES ON US COMPANIES' INCOME FROM OVERSEAS OPERATIONS AND FOR SMALL BUSINESSES RAISING TO 25000 FROM 10000 THE EXISTING WRITEOFF FOR THEIR NEW INVESTMENTS MEANWHILE ENERGY AND FARM STATE LAWMAKERS ARE GUNNING FOR THE BROAD ENERGY TAX THAT'S CENTRAL TO MR CLINTON'S DEFICITCUTTING EFFORT A PROVISION TO TAX MORE SOCIAL SECURITY BENEFITS OF HIGHERINCOME RECIPIENTS IS SPOOKING ELECTIONCONSCIOUS DEMOCRATS EVEN THE OTHERWISE NONCONTROVERSIAL INCREASE IN THE RICHEST AMERICANS' INDIVIDUAL INCOMETAX RATES HAS DEMOCRATS WEIGHING CHANGES BECAUSE OF GROWING COMPLAINTS FROM CERTAIN SMALL BUSINESSES ALSO SUBJECT TO THOSE RATES DEMOCRATS' SUPPORT IS ALL THE MORE IMPORTANT BECAUSE REPUBLICAN VOTES CAN NEVER BE COUNTED ON FOR TAX BILLS LEAST OF ALL NOW THAT THEY HAVE TASTED BLOOD BY BLOCKING THE SPENDING PACKAGE REPUBLICANS PREDICT FEW IF ANY VOTES FOR THE MEASURE IN HE HOUSE AND SENATE GOP LEADER ROBERT DOLE OF KANSAS WHO PASSED SOME MAJOR TAX INCREASES HIMSELF AS FINANCE COMMITTEE CHAIRMAN DURING THE REAGAN ADMINISTRATION HAS SERVED NOTICE THAT REPUBLICANS WILL TARGET THE CLINTON TAX BILL IN THE CLOSELY DIVIDED FINANCE PANEL WE'RE NOW GOING TO HAVE DOLELOCK SAYS REP ROSTENKOWSKI MEANWHILE RESTIVE DEMOCRATS IN CONGRESS ARE CONSTRAINED BY THE KNOWLEDGE THAT THEY CAN'T AFFORD TO LET MR CLINTON DOWN WE ALL KNOW THE PRESIDENT HAS TO BE SUCCESSFUL ON THE ECONOMIC PACKAGE SAYS CALIFORNIA DEMOCRATIC REP ROBERT MATSUI IF WE BLOW IT PEOPLE WILL SAY GRIDLOCK IS BACK AND THE INSTITUTION OF THE CONGRESS WILL BE DAMAGED MAYBE TO THE POINT WHERE PEOPLE WANT TO CLEAN THE ENTIRE PLACE OUT WE HAVE A SELFISH STAKE WE HAVE TO HAVE A SUCCESSFUL PRESIDENT TREASURY SECRETARY LLOYD BENTSEN SAID THIS WEEK THAT THOUGH HE EXPECTS CONGRESS TO WORK ITS WILL THE TAX PLAN WILL IN THE MAIN PART COME THROUGH CONGRESS AS THE PRESIDENT HAS RECOMMENDED IT THE MAJOR CHANGE LIKELY AS THE TAX WRITING GETS UNDER WAY NEXT WEEK IN THE WAYS AND MEANS COMMITTEE IS THE JETTISONING OF THE INVESTMENT TAX CREDIT WITH ITS PROJECTED FIVEYEAR COST OF 28 BILLION IN RETURN FOR HOLDING MR CLINTON'S PROPOSED TWOPERCENTAGEPOINT INCREASE IN THE 34 CORPORATE INCOME TAX RATE TO A SINGLE POINT THAT TRADEOFF APPEALS TO A FORMIDABLE BUSINESS COALITION THAT HELPED PASS THE LANDMARK 1986 TAX CODE OVERHAUL GIVEN THE GROUP'S FOCUS ON LOWER INCOME TAXES BUT IT WOULD HARDLY ENLIST THE BUSINESSES AS THE CHEERLEADERS FOR THE BILL THAT REP ROSTENKOWSKI IS SEEKING AT BEST IT COULD PREVENT THEIR OPPOSITION MANY DEMOCRATS AND REPUBLICANS CAMPAIGNED LAST YEAR ALONG WITH MR CLINTON IN SUPPORT OF AN INVESTMENT TAX CREDIT BUT THE IDEA IS A COSTLY ONE AND THE PRESIDENT'S ACTUAL PROPOSAL IS LIMITED AS A RESULT A LACK OF SUPPORT FROM REP ROSTENKOWSKI AND SENATE FINANCE COMMITTEE CHAIRMAN DANIEL PATRICK MOYNIHAN OF NEW YORK REFLECTS THE CURRENT SENTIMENT OF RANKANDFILE DEMOCRATS AND BUSINESSES GENERALLY THAT THE PROPOSED BREAK FOR EQUIPMENT PURCHASES WOULD BENEFIT TOO FEW BUSINESSES AND COST TOO MUCH FOR TOO LITTLE SPARK TO THE ECONOMY I'M NOT GOING TO FALL ON MY SWORD FOR AN ITC THAT NOBODY SEEMS TO WANT MR ROSTENKOWSKI SAYS IN THE SENATE WHICH PROBABLY WILL BEGIN WORK IN JUNE AFTER THE HOUSE FINISHES PERHAPS THE MOST CRITICAL ISSUE IS THE ENERGY TAX THE SAME DAY THAT MR CLINTON AND REP ROSTENKOWSKI LUNCHED AND TOUCHED ON THE BILL'S PROBLEMS SECRETARY BENTSEN WENT TO THE FINANCE COMMITTEE THAT HE ONCE HEADED AND DEMOCRATS THERE HIT HIM WITH A BARRAGE OF DEMANDS FOR ADJUSTMENTS SENS JOHN BREAUX OF LOUISIANA AND DAVID BOREN OF OKLAHOMA OBJECT TO THE IMPACT ON OIL AND GAS INDUSTRIES MONTANA SEN MAX BAUCUS DECRIES THE COST TO HIS HOME STATE'S COAL PRODUCERS AND TO ITS ALUMINUM INDUSTRY A MAJOR ENERGY USER SEN KENT CONRAD OF NORTH DAKOTA WANTS A BROAD EXEMPTION FOR FARMERS ALL SUCH CHANGES WOULD BLEED THE REVENUES THAT THE TAX IS INTENDED TO RAISE YET THE LOSS OF A SINGLE DEMOCRAT ON THE FINANCE PANEL WHERE THE PARTY HAS ONLY AN 119 EDGE COULD DOOM THE TAX BILL SEN BREAUX FOR ONE SAYS I'M CERTAINLY NOT COMMITTED TO IT I WANT TO BE A PARTICIPANT BUT I'M NOT GOING TO SIGN OFF SO FAR THE PROPOSAL TO TAX 85 OF SOCIAL SECURITY BENEFITS RATHER THAN 50 FOR INDIVIDUALS MAKING 25000 A YEAR AND COUPLES WITH 32000 ISN'T WIDELY OPPOSED AMONG DEMOCRATS MOREOVER SEN MOYNIHAN ACCEPTS THE IDEA PROVIDING FELLOW DEMOCRATS SOME MEASURE OF POLITICAL COVER GIVEN HIS NATIONAL REPUTATION AS DEFENDER OF THE POPULAR RETIREMENT PROGRAM BUT REPUBLICANS AND THE NATIONAL COMMITTEE TO PRESERVE SOCIAL SECURITY AND MEDICARE ALREADY ARE BLASTING WHAT A HOUSE GOP LEADER GEORGIA REP NEWT GINGRICH CALLS A SENIOR CITIZENS TAX AND UNDER THEIR ATTACKS SOME DEMOCRATIC DEFECTIONS WOULD BE CERTAIN LIBERAL DEMOCRATS GRUMBLE ABOUT THE CAPITAL GAINS TAX BREAK THAT'S CREATED INDIRECTLY BY MR CLINTON'S PROPOSAL TO INCREASE THE TOP INDIVIDUAL INCOME TAX RATE TO 396 FROM 31 FOR THE WEALTHIEST TAXPAYERS THAT'S NEARLY 12 PERCENTAGE POINTS MORE THAN THE 28 RATE ON THE GAINS FROM SELLING CAPITAL ASSETS TOGETHER WITH THE BENEFITS OF MR CLINTON'S PROPOSED REAL ESTATE INCENTIVES IT CREATES A NEW FOUNDATION FOR TAX SHELTERS SAYS SEN BILL BRADLEY THE NEW JERSEY DEMOCRAT MIGHT TRY TO APPLY THE PRESIDENT'S PROPOSED 10 SURTAX TO WEALTHY TAXPAYERS' CAPITAL GAINS INCOME IN THE MIDST OF THIS TAX DEBATE MEANWHILE THE CLINTON HEALTH PLAN MAKES ITS DEBUT WITH ITS SEPARATE PASSEL OF TAX INCREASES CONGRESSIONAL LEADERS BEGGED UNSUCCESSFULLY FOR DELAY FEARING THE OVERLOAD WILL BRING DOWN BOTH MEASURES SAYS SEN BREAUX IT JUST ADDS TO THE MISERY 9304300011 930430 BUSINESS BRIEF NEWMONT MINING CORP AUSTRALIAN INVESTMENT FIRM BUYS STAKE IN GOLD CONCERN NEWMONT MINING CORP SAID IT SOLD ITS 14 STAKE IN NEWCREST MINING LTD AN AUSTRALIAN GOLD PRODUCER FOR ABOUT 67 MILLION TO POTTER WARBURG & CO AN AUSTRALIAN INVESTMENT FIRM THE DENVER MINING COMPANY SAID IT EXPECTS TO RECORD A 30 MILLION PRETAX GAIN DURING THE SECOND QUARTER FROM ITS SALE OF THE 322 MILLION NEWCREST SHARES THE TRANSACTION IS EXPECTED TO CLOSE NEXT WEEK THE COMPANY SAID NEWMONT SOLD THE STAKE BECAUSE IT WANTED TO USE THE PROCEEDS TO FINANCE OTHER EXISTING INVESTMENTS A COMPANY SPOKESMAN SAID NEWCREST WAS FORMED IN 1990 THROUGH THE MERGER OF NEWMONT AUSTRALIA LTD A FORMER NEWMONT MINING UNIT AND BHP GOLD MINES LTD 9304300010 930430 GM REPORTS 1STPERIOD PROFIT OF 513 MILLION ALL OF THE EARNINGS CAME FROM NONAUTO UNITS STOCK PRICE FALLS 32 BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP LAUNCHING ITS FIRST FULL YEAR UNDER CHIEF EXECUTIVE OFFICER JOHN F SMITH JR EARNED 513 MILLION IN THE FIRST QUARTER REVERSING A YEAREARLIER LOSS AND THE BLEEDING OF CASH FROM DOMESTIC OPERATIONS BUT GM'S PROGRESS IN REPAIRING ITS BATTERED FINANCES WASN'T ENOUGH TO STOP A DROP IN THE COMPANY'S COMMON STOCK PRICE WHICH FELL 1375 OR 32 TO 41 IN LATE NEW YORK STOCK EXCHANGE TRADING ALL OF GM'S EARNINGS CAME FROM NONAUTOMOTIVE OPERATIONS AS LOSSES IN NORTH AMERICA WIPED OUT NARROWER PROFITS FROM OVERSEAS VEHICLE OPERATIONS MOREOVER ANALYSTS SAID INVESTORS WERE DISAPPOINTED THAT GM DIDN'T SIGNIFICANTLY OUTPERFORM CONSENSUS WALL STREET ESTIMATES OVERALL GM EARNED 42 CENTS A SHARE COMPARED WITH A RESTATED LOSS OF 2104 BILLION OR 3396 A SHARE IN THE YEAREARLIER QUARTER INCLUDING A ONETIME CHARGE OF 208 BILLION TO REFLECT FUTURE RETIREE MEDICAL LIABILITIES WITHOUT THAT CHARGE GM HAD A LOSS OF 1667 MILLION A YEAR EARLIER INVESTOR REACTION RECOGNIZED WHAT MR SMITH HIMSELF ACKNOWLEDGED IN A STATEMENT THIS IS JUST THE FIRST STEP IN MEETING OUR AGGRESSIVE FINANCIAL GOALS WE STILL HAVE A LONG WAY TO GO BEFORE WE ARE SATISFIED ON THE PLUS SIDE GM'S NORTH AMERICAN AUTO OPERATIONS NARROWED THEIR LOSSES TO 1937 MILLION FROM 12 BILLION EXCLUDING AN 189 BILLION NONCASH CHARGE TO REFLECT LIABILITIES FOR FUTURE RETIREE MEDICAL BENEFITS THE IMPROVEMENT REFLECTED LOWER PURCHASING AND MARKETING COSTS CUTBACKS IN UNPROFITABLE SALES TO RENTALCAR FLEETS AND STRONGER SALES SAID GM'S CHIEF FINANCIAL OFFICER G RICHARD WAGONER IN A NEWS CONFERENCE GM ALSO BEGAN REAPING THE BENEFIT OF CUTTING 24000 PEOPLE FROM ITS WORLDWIDE AUTOMOTIVE PAYROLLS MOST OF THEM IN NORTH AMERICA THE JACK SMITH RESTRUCTURING PLAN IS WORKING AS PROMISED NO SMOKE SCREENS SAID WERTHEIM SCHRODER ANALYST JOHN CASESA AT THE RATE OF IMPROVEMENT INDICATED BY THE FIRST QUARTER GM'S DOMESTIC OPERATIONS COULD BE IN THE BLACK FOR THE FULL YEAR MR CASESA SAID A KEY INDICATOR OF GM'S PROGRESS CASH FLOW FROM OPERATIONS JUMPED TO 411 BILLION COMPARED WITH NEGATIVE CASH FLOW OF 3768 MILLION A YEAR EARLIER AFTER CAPITAL SPENDING DIVIDENDS AND OTHER EXPENSES GM IMPROVED ITS AUTOMOTIVE CASH RESERVES TO 775 BILLION FROM 721 BILLION AT JAN 1 AND 413 BILLION ON MARCH 31 1992 THE LATEST RESULTS SHOW GM IS ON TRACK TO MEET MR SMITH'S GOAL OF BREAKING EVEN IN NORTH AMERICAN VEHICLE OPERATIONS THIS YEARBEFORE INTEREST TAXES AND CONTINUING CHARGES FOR FUTURE RETIREE MEDICAL BENEFITS MR WAGONER SAID ON THIS BASIS GM'S NORTH AMERICAN OPERATIONS EARNED 5254 MILLION IN THE LATEST QUARTER COMPARED WITH A LOSS OF 992 MILLION BUT MR WAGONER ACKNOWLEDGED THAT IT ISN'T A SUSTAINABLE BUSINESS PROPOSITION FOR THE LARGEST SEGMENT OF GM'S BUSINESS NOT TO EARN ENOUGH TO COVER DEBT AND TAX OBLIGATIONS WHICH AMOUNTED TO 7191 MILLION IN THE LATEST QUARTER MOREOVER GM STILL IS SADDLED WITH MORE PLANTS AND PEOPLE THAN ITS SALES CAN SUPPORT AND THUS IS LAGGING WELL BEHIND RIVALS FORD MOTOR CO AND CHRYSLER CORP IN PROFITABILITY BOTH FORD AND CHRYSLER EARNED MONEY IN THEIR DOMESTIC OPERATIONS DURING THE FIRST QUARTER DESPITE THE SLOW US ECONOMIC RECOVERY BUT FORD WAS ABLE TO RUN ITS US FACTORIES AT 93 OF CAPACITY DURING THE LATEST QUARTER COMPARED WITH 75 FOR GM GM ALSO DOLED OUT SOME 940 PER VEHICLE IN SALES INCENTIVES DOWN FROM 1000 LAST YEAR BUT STILL MORE THAN FORD'S 875 PER VEHICLE AVERAGE MEANWHILE GM'S EUROPEAN OPERATIONS TOOK A BLOW DURING THE FIRST QUARTER AS ITS RETAIL SALES VOLUME FELL 184 DURING THE JANUARY TO MARCH PERIOD GM'S TOTAL OVERSEAS PROFIT FELL TO 1646 MILLION FROM 4819 MILLION A YEAR BEFORE DESPITE STRONG RESULTS FROM BRAZIL AND OTHER OVERSEAS MARKETS OUTSIDE OF EUROPE MR WAGONER SAID GM EUROPE WAS IN THE BLACK MR WAGONER SAID BUT SOME ANALYSTS SAID GM'S BIG GERMAN SUBSIDIARY ADAM OPEL AG LOOKED TO BE IN THE RED IT'S GOING TO BE A ROUGHER YEAR IN EUROPE MR WAGONER SAID ADDING THAT GM EUROPE IS STEPPING UP ITS COSTCUTTING EFFORTS ANALYSTS ECHOED THE CONCERN EUROPE WAS TERRIBLE SAID SG WARBURG & CO ANALYST DAVID HEALY MR WAGONER TOLD ANALYSTS THAT SOFT SALES FORCED GM EUROPE TO SWEETEN DISCOUNTS BY 30 TO 35 IN EUROPE TO ROUGHLY 600 A CAR AND THAT INCENTIVE COSTS ARE STILL RISING MR HEALY SAID THE SLOWDOWN IN EUROPE ALSO TURNS UP THE PRESSURE ON GM'S NORTH AMERICAN OPERATIONS TO START GENERATING SUBSTANTIALLY MORE CASH SO THE COMPANY CAN BEGIN REPAIRING THE HOLES IN ITS BALANCE SHEET ONE OF THE BIGGEST HOLES IS A 14 BILLION UNFUNDED PENSION LIABILITY MR WAGONER SAID CLOSING THAT GAP BY THE END OF THE DECADE IS A HIGH PRIORITY ISSUE WITH THE BOARD OF DIRECTORS MR WAGONER SAID GM'S PENSION TRUSTS ALREADY HAVE MET THEIR EARNINGS TARGETS FOR THE CURRENT FISCAL YEAR MR WAGONER SAID GM PLANS TO MAKE VERY HEAVY CONTRIBUTIONS TO ITS PENSION FUNDS THIS YEAR AND IN COMING YEARS HE ADDED MR WAGONER REFUSED TO ELABORATE ON THE SIZE OF THE CONTRIBUTIONS HOWEVER HE INDICATED THAT IN THE SHORT TERM THE PENSION FUNDING GAP COULD GROW REFLECTING THE EFFECT OF LOWER MARKET INTEREST RATES ON PENSION ACCOUNTING ASSUMPTIONS MEANWHILE HE SAID GM PLANS TO INCREASE CAPITAL SPENDING TO 72 BILLION FOR THE YEAR UP 125 FROM 64 BILLION IN 1992 THE INCREASE IS TIED TO A REVAMPED PRODUCT PLAN UNDER WHICH GM PLANS TO LAUNCH A NEW VEHICLE IN THE US EVERY SIX MONTHS STARTING THIS FALL BUT IN AN IMPLIED CRITICISM OF GM'S FINANCIAL MANAGEMENT UNDER FORMER CHAIRMEN ROGER B SMITH AND ROBERT C STEMPEL MR WAGONER DECLARED OUR OBJECTIVE ISN'T TO SPEND A LOT OF CAPITAL IT'S TO GET A LOT OF GOOD PRODUCTS BY SPENDING OUR CAPITAL AS EFFICIENTLY AS POSSIBLE IT'S CLEAR WE WERE THE CHAMPIONS OF CAPITAL SPENDING IN THE 1980S AND WE SEE THAT DIDN'T EXACTLY YIELD THE RESULTS WE WANTED ON OTHER MATTERS MR WAGONER SAID GM NO LONGER IS LOSING KEY PURCHASING EXECUTIVES TO RAIDS BY FORMER PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA AND HIS NEW EMPLOYER VOLKSWAGEN AG GM PLANS NO MAJOR PRICE HIKES TO TAKE ADVANTAGE OF RISING PRICES FOR JAPANESE CARS DESCRIBED AS WORKABLE HIS DUAL ROLES AS CHIEF FINANCIAL OFFICER AND HEAD OF WORLDWIDE PURCHASING BUT DIDN'T RULE OUT A MOVE TO SPLIT THE TWO JOBS AGAIN 9304300009 930430 ENTERPRISE SMALLBUSINESS SALARIES ARE NOW EVERYBODY'S BUSINESS IRS REQUIRES FIRMS WITH DEFINEDBENEFIT PENSION PLANS TO REVEAL PAY DATA BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL THOUSANDS OF BUSINESS OWNERS AND TOP EXECUTIVES WHO CHERISH THEIR PRIVACY HAVE A NEW NIGHTMARE UNDER A NEW INTERNAL REVENUE SERVICE RULE ALMOST EVERYONE WHO REALLY CARES MAY BE ABLE TO FIND OUT HOW MUCH THEY EARN THE LITTLEKNOWN SOURCE OF THIS THREAT TO CHERISHED SECRETS IS THE 1992 VERSION OF THE AGENCY'S FORM 5500 SCHEDULE B THE REVISED FORM REQUIRES ALL COMPANIES WITH DEFINEDBENEFIT PENSION PLANS TO LIST EMPLOYEES ANONYMOUSLY BY AGE JOB TENURE AND SALARY IF AVAILABLE COMPANIES MUST FILE THE FORMS WITHIN SEVEN MONTHS OF THE END OF THEIR FISCAL YEARS ARMED WITH THIS DOCUMENT EMPLOYEES COMPETITORS AND JUST PLAIN BUSYBODIES OFTEN WILL BE ABLE TO PINPOINT A SPECIFIC PERSON'S SALARY ESPECIALLY AT THE TOP LEVEL I AM HORRIFIED THAT THE GOVERNMENT WOULD REQUIRE SUCH A DOCUMENT TO BE MADE PUBLIC SAYS CHARLES KENYON OWNER OF SELECTA SWITCH INC A COVINA CALIF SUPPLIER OF ELECTRIC AND ELECTRONIC SWITCHES THAT OFFERS ITS 36 EMPLOYEES A DEFINEDBENEFIT PENSION PLAN IT'S EASY FOR EMPLOYEES TO BECOME DISGRUNTLED IF THEY LEARN HOW MUCH THEIR COWORKERS ARE MAKING HE ADDS THIS WILL JUST FEED THEIR IMAGINATION DEFINEDBENEFIT PENSION PLANS PROVIDE A PENSION BASED ON A RETIRED EMPLOYEE'S SALARY AND YEARS OF SERVICE THE IRS SAYS THE ADDITIONAL DATA WILL HELP IT TO IDENTIFY COMPANIES THAT ARE UNDERFUNDING THEIR PENSION PLANS OR OVERSTATING THEIR TAX DEDUCTIONS THE WIDER PAY DISCLOSURE IS AN UNINTENDED AND ALREADY CONTROVERSIAL SIDE EFFECT OF THE NEW RULE SMALL PRIVATE COMPANIES FEAR THAT PREVIOUSLY CONFIDENTIAL EMPLOYEE DATA MAY BECOME AVAILABLE TO OTHER WORKERS COMPETITORS HEADHUNTERS AND NOSY NEIGHBORS BETWEEN 140000 AND 175000 US BUSINESSES WITH FEWER THAN 100 EMPLOYEES OFFER DEFINEDBENEFIT PENSION PLANS AND THEY COULD BE MOST AFFECTED BY THE NEW RULE ESTIMATES SAM GILBERT PRESIDENT OF UNITED PLAN ADMINISTRATORS INC THE WESTLAKE VILLAGE CALIF CONCERN PROVIDES PENSION CONSULTING SERVICES TO CALIFORNIA BUSINESSES THE REVISED FORM PROMPTED A DEBATE AT A MARCH MEETING OF ENROLLED ACTUARIES IN WASHINGTON AFTER SEVERAL ACTUARIES BADGERED ONE IRS OFFICIAL THE AGENCY TEMPORARILY BACKED OFF FROM ENFORCING THE RULE THE OFFICIAL SAID THAT THE IRS WOULDN'T REJECT FORMS COVERING 1992 FIGURES EVEN IF COMPANIES EXCLUDE THE PAY DATA ACCORDING TO MICHAEL CALLAHAN A FELLOW OF THE AMERICAN SOCIETY OF PENSION ACTUARIES WHO ATTENDED THE MEETING AN IRS SPOKESMAN CONFIRMS THE OFFICIAL'S STATEMENTS AT LAST MONTH'S MEETING BUT DECLINES TO COMMENT FURTHER ACTUARIES EXPECT THE IRS TO BEGIN ENFORCING THE REQUIREMENT AS EARLY AS NEXT YEAR MR CALLAHAN SAYS HIS ORGANIZATION HASN'T GEARED UP TO OPPOSE THE IRS YET BUT WE'RE GOING TO COME IN HARD ON THIS ONE BY WRITING TO THE IRS AND THE TREASURY THE NEW IRS RULE ASKS COMPANIES TO LUMP TENURE AND PAY DATA FOR ALL EMPLOYEES TOGETHER BY AGE FOR INSTANCE ALL WORKERS 50 TO 54 YEARS OLD WITH 15 TO 19 YEARS' SENIORITY ARE TO BE INCLUDED IN THE SAME CELL ALONG WITH THEIR TOTAL SALARIES AT LARGE COMPANIES MANY EMPLOYEES WILL BE GROUPED TOGETHER MAKING IT NEARLY IMPOSSIBLE TO FERRET OUT DATA FOR INDIVIDUALS MR KENYON ON THE OTHER HAND IS HIS FIRM'S ONLY EMPLOYEE OVER 40 YEARS OLD SINCE HIS SALARY WILL BE THE ONLY ENTRY IN HIS AGE GROUP HE SAYS IT WON'T BE DIFFICULT TO FIGURE OUT HOW MUCH I MAKE HE DECLINES TO SAY HOW MUCH HE EARNS EMPLOYEE PARTICIPANTS IN A DEFINEDBENEFIT PENSION PLAN MAY OBTAIN THEIR EMPLOYER'S IRS INFORMATION FROM THE COMPANY WITHIN 60 DAYS OF ITS FILING ANYONE ELSE CAN RETRIEVE THE DATA FROM THE LABOR DEPARTMENT ALTHOUGH THERE PROBABLY WILL BE A TWOYEAR LAG SAYS ETHAN KRA A MANAGING DIRECTOR OF NEW YORK CONSULTANTS WILLIAM M MERCER INC SOME PERSONNEL RECRUITERS WILL FIND IT WORTHWHILE TO UNCOVER ONCECONFIDENTIAL PAY DATA BECAUSE IT MAY HELP THEM TO LURE EXECUTIVES NEVERTHELESS THE NEW REQUIREMENT ANNOYS ME BECAUSE MY SALARY INFORMATION IS NOBODY'S BUSINESS SAYS RONALD A KNAPP OWNER OF KNAPP CONSULTANTS AN EXECUTIVESEARCH FIRM IN WILTON CONN OTHER EMPLOYERS WORRY ABOUT THE ADDITIONAL COST OF REVISING THEIR LATEST DATA TO COMPLY WITH THE IRS'S NEW FORMAT LIKE MANY ACTUARIES MR CALLAHAN SAYS HE ALREADY HAD TABULATED THE FORM 5500 DATA FOR 1992 BEFORE THE IRS REVISED IT NOW HE MUST REDO THE FORMS AND CHARGE AN ADDITIONAL 25 TO 35 TO NUMEROUS CLIENTS FOR FIRMS WITH FEWER THAN 50 EMPLOYEES THAT WILL MEAN AN ADDITIONAL EXPENSE OF 500 TO 2000 TO PROCESS THEIR 1992 INFORMATION HE NOTES THIS IS A SIGNIFICANT INCREASE SAYS STEWART BOHAN A CALLAHAN CLIENT AND PRESIDENT OF CLOSELY HELD CONNECTICUT ATTORNEYS TITLE INSURANCE CO THE ROCKY HILL CONN CONCERN OFFERS ITS 55 EMPLOYEES A DEFINEDBENEFIT PENSION PLAN MR BOHAN SAYS HIS FIRM IS AT THE HIGH END OF MR CALLAHAN'S ESTIMATE IT'S NOT JUST A DROP IN THE BUCKET THE EXECUTIVE GROUSES IN THE LONG RUN THE NEW IRS RULE ALSO MAY HASTEN SMALL BUSINESSES' SHIFT AWAY FROM DEFINEDBENEFIT PENSION PLANS THE RULE ISN'T A MAJOR IRRITANT FOR BIG COMPANIES BUT IF I WERE PRESIDENT OF A SMALL FIRM MAYBE I WOULDN'T NECESSARILY STAY WITH THE DEFINEDBENEFIT PENSION PLAN IF IT REVEALED SALARY DATA SAYS DICK MOODY AN ACTUARY WITH CONSULTANTS HEWITT ASSOCIATES IN LINCOLNSHIRE ILL BOTH MR BOHAN AND MR KENYON OF SELECTA SWITCH SAY THEY MAY DROP THEIR DEFINEDBENEFIT PLANS AND INSTEAD ADOPT A SIMPLER DEFINED CONTRIBUTION PLANS IN WHICH THE EMPLOYER CONTRIBUTES MONEY INTO AN INDIVIDUAL ACCOUNT IN A WORKER'S NAME SUCH PLANS AREN'T AFFECTED BY THE REVISED IRS REQUIREMENTS A 1992 SURVEY OF ACTUARIES REVEALED THAT 30 OF THE 30000 EMPLOYERS TERMINATING THEIR DEFINEDBENEFIT PLANS BETWEEN JANUARY 1990 AND JUNE 1992 DID SO BECAUSE OF EXCESS FEDERAL REGULATION ANOTHER 26 PULLED OUT BECAUSE THEIR PLAN PROVED TOO EXPENSIVE ACCORDING TO THE AMERICAN ACADEMY OF ACTUARIES WHICH CONDUCTED THE SURVEY WHATEVER THE REASON 39 OF BUSINESSES THAT TERMINATED PLANS DIDN'T PROVIDE EMPLOYEES WITH AN ALTERNATIVE THE GOVERNMENT SHOULD BE TRYING TO ENCOURAGE EMPLOYERS TO MAINTAIN PENSION PLANS INSTEAD OF HAVING RETIREES RELY ON SOCIAL SECURITY ALONE MR KENYON CONTENDS BUT EVERYTHING SEEMS TO BE GOING BACKWARDS 9304300008 930430 ECONOMY G7 AIDES SEE ROOM FOR MORE RATE CUTS BY EUROPE HAIL JAPAN'S ECONOMIC STEPS BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TOP ECONOMIC OFFICIALS FROM THE GROUP OF SEVEN INDUSTRIALIZED COUNTRIES SAID THEY SEE ROOM FOR A FURTHER DECLINE IN INTEREST RATES IN EUROPE AND HAILED THE JAPANESE GOVERNMENT'S WELCOME CONTRIBUTION TOWARD SHORING UP ITS SAGGING ECONOMY IN A COMMUNIQUE ISSUED AFTER THEIR MEETING HERE YESTERDAY THE FINANCE MINISTERS AND CENTRAL BANKERS AGREED THAT EXCESSIVE VOLATILITY IN CURRENCY MARKETS IS UNDESIRABLE AND PLEDGED CLOSE COOPERATION BUT DESPITE PLEAS FROM THE JAPANESE SAID NOTHING SPECIFIC ABOUT THE RECENT STRENGTH OF THE YEN TREASURY SECRETARY LLOYD BENTSEN SAID THE SESSION HELPS LAY THE BASIS FOR FURTHER STEPS BY JAPAN AND GERMANY IF WE WORK TOGETHER WE WILL GROW TOGETHER HE SAID BUT THE JAPANESE GAVE NO INDICATION THAT THEY WERE THINKING ABOUT ANY ADDITIONAL MEASURES TO BOOST THEIR ECONOMY DESPITE US PRESSURE TO DO SO AND THE HEAD OF GERMANY'S CENTRAL BANK HELMUT SCHLESINGER TOLD REPORTERS WE HAVEN'T ADOPTED A POLICY OF AGGRESSIVE INTERESTRATE REDUCTIONS WE'RE NOT YET OVER THE HILL WITH THE INFLATION PROBLEM BY ALL ACCOUNTS THE MEETING WAS HARMONIOUS LARGELY BECAUSE THE GERMAN BUNDESBANK CUT INTEREST RATES IN THE PAST FEW DAYS ALLOWING OTHER EUROPEAN COUNTRIES TO DO THE SAME AND THE US INTERVENED IN CURRENCY MARKETS TO ARREST THE YEN'S RAPID RISE A SENIOR US TREASURY OFFICIAL REVIEWING THE ADMINISTRATION'S FIRST 100 DAYS AT ATTEMPTING TO COORDINATE INTERNATIONAL POLICY SAID THE TREASURY IS PLEASED BY THE TERRIFIC RESULTS IN TONE AND IN SUBSTANCE ALTHOUGH THE JAPANESE GOVERNMENT HAS UNVEILED A GOVERNMENTSPENDING PACKAGE TO STIMULATE ITS ECONOMY AND THE GERMAN BUNDESBANK HAS CUT RATES THE NEARTERM OUTLOOK FOR THE WORLD ECONOMY IS BLEAKER THAN IT WAS THREE MONTHS AGO THIS WAS UNDERSCORED BY YESTERDAY'S REPORT THAT THE US ECONOMY GREW AT A MISERLY 18 ANNUAL RATE IN THE FIRST QUARTER ALMOST HALF THE RATE THAT ECONOMISTS WERE FORECASTING AT THE BEGINNING OF THE YEAR MR BENTSEN USED A LATEAFTERNOON NEWS CONFERENCE TO ONCE AGAIN EMPHASIZE HOW MUCH WE WANTED THE ADMINISTRATION'S ECONOMIC STIMULUS PACKAGE WHICH WAS DERAILED BY SENATE REPUBLICANS BUT HE ACKNOWLEDGED THAT NONE OF THE OTHER G7 OFFICIALS HAD MENTIONED THE MATTER IN THEIR WIDERANGING DISCUSSION OF HOW TO IMPROVE GLOBAL ECONOMIC GROWTH IN FACT THE INTERNATIONAL MONETARY FUND HAS ADVISED AGAINST PRESIDENT CLINTON'S EAGERNESS TO WIDEN THE BUDGET DEFICIT TO STIMULATE THE ECONOMY THIS YEAR AND LIKE THE G7 EMPHASIZED ITS ENTHUSIASM FOR HIS DEFICITREDUCTION PLAN BEFORE THE OFFICIALS SAT DOWN FOR DINNER LAST NIGHT PRESIDENT CLINTON SHOWED UP FOR ABOUT 25 MINUTES IN WHAT AIDES DESCRIBED AS AN ATTEMPT TO DEMONSTRATE HIS COMMITMENT TO REVITALIZING INTERNATIONAL ECONOMIC COORDINATION MR CLINTON ACCORDING TO THOSE PRESENT MADE CLEAR THAT HE EXPECTS THE JAPANESE TO DO MORE TO STIMULATE THEIR OWN ECONOMY AND TO AID RUSSIA RUSSIA MUST DO WHAT IT HAS PROMISED HE SAID AND THE G7 MUST DO THE SAME MR CLINTON ALSO CALLED FOR EXCEPTIONAL EFFORTS TO CONCLUDE THE STALLED URUGUAY ROUND OF WORLD TRADE TALKS AT THE EARLIEST POSSIBLE DATE GERMAN FINANCE MINISTER THEO WAIGEL ARRIVED IN WASHINGTON WITH A PARTICULARLY GLOOMY VIEW TELLING REPORTERS THAT HE NOW EXPECTS THE GERMAN ECONOMY TO SHRINK BY A GREATERTHANEXPECTED 15 THIS YEAR SWELLING THE GOVERNMENT BUDGET DEFICIT WE KNOW HOW DIFFICULT IT WILL BE TO ACHIEVE AN ECONOMIC TURNAROUND THIS YEAR HE SAID EXCEPT FOR BRITAIN WHICH IS FINALLY ON THE MEND EUROPE APPEARS TO BE FOLLOWING ITS LARGEST ECONOMY INTO RECESSION THE G7 COMMUNIQUE ALWAYS THE SUBJECT OF TEDIOUS NEGOTIATION SAID IMPLEMENTATION OF EUROPEAN GOVERNMENT PLANS TO REDUCE BUDGET DEFICITS COMBINED WITH THE EASING OF INFLATIONARY PRESSURES WILL CREATE ROOM FOR A FURTHER DECLINE IN INTEREST RATES THAT SHOULD MAKE A SUBSTANTIAL CONTRIBUTION FOR GROWTH NEW FRENCH ECONOMICS MINISTER EDMOND ALPHANDERY SAID HE SEES A BIG MARGIN OF MANUEVER FOR FURTHER INTERESTRATE DECLINES IN BOTH FRANCE AND GERMANY THE COMMUNIQUE WAS LESS SPECIFIC ABOUT JAPAN EMPHASIZING ONLY THE IMPORTANT GOAL OF INCREASING DOMESTIC DEMAND WHICH WOULD HELP SHRINK JAPAN'S LARGE TRADE SURPLUS THE G7 STATEMENT HAILED THE RECENT REFERENDUM IN RUSSIA AS A MAJOR ENDORSEMENT OF PRESIDENT BORIS YELTSIN'S COMMITMENT TO DEMOCRACY AND ECONOMIC REFORM AS WELL AS A MANDATE FOR CHANGE THE STATEMENT URGED RUSSIA TO IMPLEMENT FARREACHING MEASURES TO STABILIZE PRICES AND PROMOTE PRIVATE ENTERPRISE SO RUSSIA CAN TAP NEWLY AVAILABLE LOANS FROM INTERNATIONAL FINANCIAL INSTITUTIONS DESPITE THE JAPANESE DESIRE TO GET G7 SUPPORT IN THEIR CAMPAIGN TO STOP THE YEN'S RISE G7 OFFICIALS SAID YESTERDAY'S MEETING DIDN'T DWELL ON EXCHANGE RATES US INTERVENTION THIS WEEK AND PUBLIC STATEMENTS FROM MR BENTSEN HAVE BRAKED THE YEN'S RISE AT LEAST FOR NOW IN THEIR CAREFULLY WORDED COMMUNIQUE THE G7 ECHOED MR BENTSEN'S STATEMENTS SAYING WE AGREED THAT EXCHANGE RATES SHOULD REFLECT ECONOMIC FUNDAMENTALS AND THAT EXCESSIVE VOLATILITY IS UNDESIRABLE THE JAPANESE TOOK HEART THIS WAS WRITTEN BECAUSE OF THAT YEN MOVEMENT A JAPANESE OFFICIAL SAID BUT MR SCHLESINGER THE BUNDESBANK HEAD SAID THE LANGUAGE DOESN'T NECESSARILY MEAN MORE CONCERTED CENTRAL BANK INTERVENTION TO AFFECT THE DOLLARYEN EXCHANGE RATE THE YEN WHICH TOUCHED A POSTWAR LOW OF 10925 TO THE DOLLAR EARLY THIS WEEK WAS QUOTED LATE YESTERDAY IN NEW YORK AT 111 TERENCE ROTH CONTRIBUTED TO THIS ARTICLE 9304300007 930430 INTERNATIONAL WORLD ECONOMY DETERMINED TO OPEN JAPANESE MARKETS CLINTON TO SPEAK LOUDLY CARRY A CUDGEL BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE MAIN THEMES OF BILL CLINTON'S TRADE POLICY TOWARD JAPAN ARE EMERGING AND TWO THINGS ARE CLEAR THE JAPANESE WON'T LIKE IT AND IT WON'T REDUCE THE US TRADE DEFICIT SOON BOTH ARE PROBABLY UNAVOIDABLE NEITHER THE US NOR EUROPE WILL TOLERATE JAPAN'S RESISTANCE TO FOREIGN GOODS MUCH LONGER A SHOWDOWN IS COMING YET NO ONE IMAGINES THAT ANY QUICK OR SIMPLE SOLUTION IS POSSIBLE IT WILL BE YEARS BEFORE THE TRADING PATTERNS OF EVEN A WILLING JAPAN CAN RESEMBLE THOSE OF OTHER INDUSTRIAL STATES MOREOVER JAPAN WILL RESIST CHANGE REQUIRES REVISING COZY TRADITIONS POLICIES AND RELATIONSHIPS THAT HAVE SERVED IT WELL IT ALSO REQUIRES THE JAPANESE TO GIVE UP THEIR HISTORIC AVERSION TO DEPENDENCY ON FOREIGN PARTNERS OR FOREIGN GOODS SO THE US WILL TRY HARDER TO FORCE CHANGE LIKE MANY OTHERS CLINTON ADMINISTRATION OFFICIALS FIND SOME OF JAPAN'S GLOBAL WAYS UNACCEPTABLE THUS THEY WILL DO MORE THAN PRESS TOKYO TO BUY FOREIGN RICE EXPORT FEWER CARS OR IMPORT SUPERCOMPUTERS ALL THOSE MOVES ARE IMPORTANT TO SPECIFIC INDUSTRIES BUT THEY ARE ONLY MANIFESTATIONS OF THE REAL PROBLEM JAPAN'S MULTIFACETED RESISTANCE TO FOREIGN GOODS THEY WILL INSIST THAT JAPANESE TRADE AND INVESTMENT PATTERNS BECOME MORE LIKE THOSE OF FRIENDS AND ALLIES OR ELSE JAPAN IS DIFFERENT FROM THE OTHERS SAYS A US OFFICIAL SO WE NEED TO APPLY EXTERNAL PRESSURES A FEW FIGURES INDICATE HOW DIFFERENT FOR ONE THING JAPAN DOESN'T USE FOREIGN GOODS AS OTHERS DO FOOD AND FUEL ASIDE IN 1990 ITS CONSUMPTION OF IMPORTED MANUFACTURED GOODS EQUALED ONLY 59 OF DOMESTIC OUTPUT OF SIMILAR GOODS THE US FIGURE BY CONTRAST WAS 153 GERMANY WAS 154 THE UK WAS 177 AND FRANCE WAS 137 EXCLUDING INTRAEC TRADE BY AND LARGE JAPAN DOESN'T IMPORT PRODUCTS LIKE THOSE ITS OWN INDUSTRIES EXPORT EVEN WHEN PRICE QUALITY OR DELIVERY INDICATE IT SHOULD OTHER FINDINGS SUGGEST JAPAN HAS THE ONLY ECONOMY WHOSE RELIANCE ON MANUFACTURED IMPORTS IS ACTUALLY DECREASING AND WHETHER BY DESIGN OR NOT JAPAN EFFECTIVELY EXCLUDES DIRECT FOREIGN INVESTMENT LESS THAN 1 OF ITS FACTORIES HAVE OVERSEAS OWNERS IT'S REASONABLY CLEAR THERE ARE NO SERIOUS STRUCTURAL PROBLEMS WITH EUROPE SAYS MICHAEL BORRUS OF THE BERKELEY ROUNDTABLE ON THE INTERNATIONAL ECONOMY THE REAL DISRUPTIVE FORCE IS JAPAN A 1992 GLOBAL TRADE SURPLUS OF 133 BILLION 47 BILLION WITH THE US SYMBOLIZES THE PROBLEM THE BUSH ADMINISTRATION TRIED COMPLEX TALKS CALLED THE STRUCTURAL IMPEDIMENTS INITIATIVE TO CHANGE JAPAN'S ECONOMIC BEHAVIOR THE CLINTON TEAM IS MORE LIKELY TO STRESS RESULTS HOPING TO AVOID FRACTIOUS DISPUTES ABOUT MEANS FOR EXAMPLE THE CLINTON TEAM ALSO WANTS TO WEAKEN THE INFLUENCE OF KEIRETSU JAPANESE INDUSTRIAL ALLIANCES WHOSE MEMBERS OFTEN DEAL WITH EACH OTHER EVEN WHEN NORMAL BUSINESS CONSIDERATIONS SUGGEST THEY SHOULD LOOK ELSEWHERE INCLUDING OVERSEAS BUT IT WANTS TOKYO TO DECIDE HOW THE GOAL IS MAKE JAPAN'S MARKET OVER TIME ROUGHLY AS OPEN AS THOSE OF OTHER INDUSTRIAL NATIONS BUT THAT WON'T CUT THE TRADE SURPLUS QUICKLY OR EASE POLITICAL PRESSURE FOR RAPID RESULTS SO MR CLINTON ALSO WILL SEEK FASTER HELP FOR COMPETITIVE INDUSTRAL SECTORS THAT CLAIM THEY WOULD DO BETTER NOW IF COMMERCIAL CONSIDERATIONS APPLIED MORE STRICTLY PHARMACEUTICALS AND ELECTRONICS ARE LEADING CANDIDATES AND FOR POLITICAL REASONS HE'LL PROBABLY SEEK SOMETHING FOR THE AUTO INDUSTRY THE EFFORT WILL INVOLVE A FOCUSED APPROACH AND SPECIFIC DEMANDS PROMISES AN OFFICIAL THERE WILL BE BENCHMARKS TO JUDGE IF THE POLICY IS WORKING EVEN IF TOKYO REFUSES TO ACCEPT THEM EXPLICITLY HOWEVER OFFICIALS DON'T WANT TO BE LOCKED INTO USING PRECISE NUMBERS BUT THE CUDGEL IS PART OF THE PLAN MR CLINTON DOESN'T SHARE PRESIDENT BUSH'S DEEP CONCERN ABOUT THE STRATEGIC RELATIONSHIP WITH JAPAN AND IS MORE LIKELY TO ACT TOUGH ON ECONOMIC MATTERS HE BELIEVES THE NATIONAL NEED TO EXPORT LEAVES JAPAN IN THE END VULNERABLE TOKYO WILL BE TOLD THAT FAILURE TO OFFER TRADE RELIEF WILL BRING SWIFT AND SURE TRADE PUNISHMENT REFERRING TO ONE HARSH TRADE LAW AN OFFICIAL CALLS IT A TERRIBLE WAY TO OPEN MARKETS BUT IT WORKS PERHAPS SO BUT CARELESS USE OF THE TACTIC COULD ALSO SET OFF A CHAIN REACTION OF RETALIATION SUBVERTING THE GLOBAL TRADE SYSTEM THUS SOME TRADE EXPERTS URGE WASHINGTON TO REMAIN REASONABLE ABOUT HOW MUCH IT WANTS TO CHANGE HOW FAST 9304300006 930430 MARKETING & MEDIA PHILIP MORRIS RJR NABISCO FACE HEAT FROM STILL FIERY TOBACCO PRICE WAR BY EBEN SHAPIRO AND SUEIN L HWANG STAFF REPORTERS OF THE WALL STREET JOURNAL THE NATION'S TWO LARGEST CIGARETTE COMPANIES CONTINUE TO RATTLE THEIR SABERS IN THE LOOMING TOBACCO PRICE WAR PHILIP MORRIS COS'S CHIEF EXECUTIVE OFFICER ADDRESSING THE ANNUAL MEETING OF SHAREHOLDERS IN RICHMOND VA VOWED TO CUT PRICES EVEN MORE THAN ALREADY PLANNED IF THAT BECOMES NECESSARY TO PROTECT MARLBORO RJR NABISCO HOLDINGS CORP MEANWHILE RELEASED STRONG FIRSTQUARTER EARNINGS AND TOUTED INCREASES IN US CIGARETTE SHIPMENTS AT THE SAME TIME HOWEVER THE COMPANY PREDICTED DECLINING PROFITS IN THAT SEGMENT THIS YEAR AND REITERATED A DETERMINATION TO TAKE NECESSARY MOVES TO MAINTAIN OUR COMPETITIVE POSITION IN ALL PRICE CATEGORIES THE BIGGER BROADSIDE HOWEVER CAME FROM PHILIP MORRIS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MICHAEL A MILES WHO WAS PESTERED BY OTHERWISE DOCILE SHAREHOLDERS TO JUSTIFY THE COMPANY'S DECISION TO CUT MARLBORO PRICES THE COMPANY HAS SAID IT EXPECTS US TOBACCO PROFITS TO DECLINE BY 2 BILLION OR 40 THIS YEAR AS IT IMPOSES PROMOTIONS AND PRICE CUTS TO REDUCE MARLBOROS BY 40 CENTS A PACK BUT THE CEO SIGNALED A WILLINGNESS TO SPEND EVEN MORE AGGRESSIVELY AT THE MEETING SHAREHOLDER AND PRUDENTIAL SECURITIES ANALYST S LEIGH FERST ASKED MR MILES WHAT IF 40 CENTS ISN'T THE MAGIC NUMBER THE CHAIRMAN RESPONDED WE ARE PREPARED TO GO BEYOND THAT IF WE HAVE TO TO PROTECT OUR BRAND FRANCHISE THAT APPEARED TO BE A SUBTLE CHALLENGE AIMED IN PART AT RJR NABISCO'S RJ REYNOLDS TOBACCO UNIT PHILIP MORRIS EXECUTIVES HAVE BLAMED THAT UNIT FOR AGGRESSIVE PRICECUTTING IN THE PRIVATELABEL MARKET A MOVE THAT HAS HURT MARLBORO THE MOST SINCE ANNOUNCING ITS MARLBORO COUNTERMOVE ON APRIL 2 PHILIP MORRIS HAS QUIETLY BEGUN A SEPARATE COUNTERATTACK IN THE CHEAPER END OF THE MARKET INDUSTRY EXECUTIVES SAID THE COMPANY IS USING COUPONS TO CUT THE PRICE OF ITS 175APACK CAMBRIDGE BRAND AND IS OFFERING WHOLESALERS BUYSOMEGETSOMEFREE DEALS ON ITS CHEAPER BASIC LINE SOME OBSERVERS DOUBT WHETHER ANYONE WINS IN A PRICE WAR AND WHEN JACK SLOVIC A PHILIP MORRIS SHAREHOLDER FROM BRASELTON GA ASKED THE CHAIRMAN IF HE WOULD GIVE UP HIS ENTIRE PAY FOR THE YEAR SHOULD THE MARLBORO STRATEGY FLOP THE MEETING CRACKLED WITH LAUGHTER AND APPLAUSE I DON'T BELIEVE YOU CAN ASK MANAGEMENT OF ANY COMPANY TO WORK ENTIRELY FOR FREE MR MILES ANSWERED WHILE ASSURING SHAREHOLDERS THAT COMPENSATION IS CLOSELY LINKED TO PERFORMANCE HE VOWED THAT PHILIP MORRIS STOCK DOWN NEARLY 50 SINCE SEPTEMBER WOULD COME BACK STRONGER OVER TIME PHILIP MORRIS SHARES ROSE 1625 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY CLOSING AT 4725 THE RISE HOWEVER MAY BE DUE MORE TO MR MILES'S STATEMENT THAT THE BOARD WOULD CONSIDER A POSSIBLE INCREASE IN THE ANNUAL 260ASHARE DIVIDEND IN AUGUST MOST ANALYSTS EXPECT A 10 DIVIDEND INCREASE SOME SHAREHOLDERS ALSO HOPE FOR AN EXPANDED SHARE BUYBACK PROGRAM YET PHILIP MORRIS EXECUTIVES INDICATED THAT A BUYBACK IS ON THE BACK BURNER HANS G STORR PHILIP MORRIS'S CHIEF FINANCIAL OFFICER SAID THAT PHILIP MORRIS CURRENTLY ISN'T BUYING SHARES AND THAT CASH FLOW WILL BE USED TO PARE DEBT AND MAKE ACQUISITIONS CASH FLOW THIS YEAR WILL BE ABOUT 62 BILLION HE SAID THAT WOULD MATCH THE YEARAGO LEVEL DESPITE THE ANTICIPATED PLUNGE IN TOBACCO PROFITS THANKS TO INCREASES FROM OTHER UNITS AND REDUCTIONS IN WORKING CAPITAL ON THE TOBACCO SIDE THE NEW PRICE CUTS HAVEN'T YET HURT EITHER MAJOR MARKETER ALL THAT MUCH RJR NABISCO WHOSE TOBACCO UNIT ANNOUNCED 40CENTAPACK REDUCTIONS FOR THE WINSTON AND CAMEL BRANDS STARTING IN JUNE POSTED SOLID FIRSTQUARTER PROFIT AS LOWER DEBT COSTS AND BETTER FOOD RESULTS COMPENSATED FOR WEAKNESS IN ITS GIANT DOMESTIC TOBACCO BUSINESS RJR REPORTED FIRSTQUARTER NET OF 163 MILLION OR 12 CENTS A SHARE COMPARED WITH A LOSS OF 15 MILLION OR TWO CENTS A SHARE IN THE YEAREARLIER PERIOD EXCLUDING ONETIME CHARGES TAKEN IN BOTH YEARS FOR THE RETIREMENT OF HIGHINTEREST DEBT RJR'S FIRSTQUARTER EARNINGS WOULD HAVE INCREASED 46 TO 210 MILLION OR 15 CENTS A SHARE FROM 144 MILLION OR 10 CENTS A SHARE NET SALES ROSE 3 TO 374 BILLION THE FOOD SIDE HAD A GOOD QUARTER POSTING A 7 JUMP IN OPERATING PROFIT TO 203 MILLION ON 6 SALES GROWTH TO 163 BILLION BUT THE OVERALL HEALTHY RESULTS MASKED THE LIKELIHOOD OF WORSENING RESULTS IN RJR'S US TOBACCO BUSINESS THAT SEGMENT WHICH GENERATED 37 OF RJR'S TOTAL SALES POSTED A 2 DROP IN OPERATING PROFIT TO 500 MILLION ON A 18 DECLINE IN SALES TO 141 BILLION THE DECLINE CAME DESPITE A 9 INCREASE IN THE VOLUME OF RJR CIGARETTES SOLD IN THE QUARTER AND THE COMPANY WARNED THAT IT EXPECTS A DECLINE IN DOMESTIC TOBACCO PROFITS FOR THE YEAR CITING MOVES BY THE COMPANY'S MAJOR COMPETITOR IN THE DOMESTIC TOBACCO BUSINESS RJR TOOK THE LEAD IN THE PRIVATELABEL SEGMENT OVER PHILIP MORRIS IN THE PAST YEAR BUT THE CHEAP SMOKES TURN PROFITS OF ONLY A NICKEL TO A DIME PER PACK COMPARED WITH 55 CENTS A PACK ON SUCH FULLPRICE BRANDS AS MARLBORO THE DECLINE IN US CIGARETTE PROFITS WAS OFFSET SOMEWHAT BY RJR'S INTERNATIONAL SEGMENT WHICH BENEFITED FROM STRONG VOLUME GAINS IN EASTERN AND WESTERN EUROPE OPERATING PROFIT ON THE INTERNATIONAL SIDE JUMPED 14 TO 159 MILLION AND SALES INCREASED 3 TO 699 MILLION THE UPBEAT EARNINGS FOR RJR DID LITTLE HOWEVER TO ALLEVIATE ANALYSTS' WORRIES ABOUT FUTURE PROFITABILITY OF ITS US TOBACCO UNIT THE FIRST QUARTER WAS A GREAT DEPICTION OF WHAT MIGHT HAVE BEEN SAID ROY BURRY ANALYST AT KIDDER PEABODY & CO RJR WAS MAKING REAL PROGRESSINTERNATIONAL GROWTH CONTINUES TO BE SPECTACULAR AND THE FOOD BUSINESS IS DOING EXTREMELY WELL BUT THIS PRICE WAR IS SOMETHING THAT WILL OVERPOWER ALL POSITIVE TRENDS 9304300005 930430 ECONOMY GDP SLOWED TO WEAK PACE IN FIRST QUARTER GAIN OF ONLY 18 FOLLOWED PRIOR PERIOD'S 47 RISE CONSUMERS WERE STINGY BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ECONOMIC ACTIVITY SLOWED SIGNIFICANTLY IN THE FIRST QUARTER A SIGN THE US RECOVERY REMAINS TENUOUS THE COMMERCE DEPARTMENT SAID GROSS DOMESTIC PRODUCT THE VALUE OF GOODS AND SERVICES PRODUCED IN THE US INCREASED AT A PALTRY ANNUAL RATE OF 18 IN THE FIRST THREE MONTHS OF THE YEAR THAT COMES AFTER AN IMPRESSIVE 47 JUMP IN THE LAST QUARTER OF 1992 PUBLIC OFFICIALS AND PRIVATE ECONOMISTS ALIKE CALLED THE NEW FIGURES DISCONCERTING MANY HAVE EVEN BEGUN LOWERING THEIR EXPECTATIONS FOR SECONDQUARTER GROWTH AS A RESULT AND THEY ARE LOOKING TOWARD THE RELEASE OF ECONOMIC DATA FOR APRIL TO HELP THEM GAUGE THE ECONOMY'S HEALTH THE SLOWDOWN WAS BROADBASED AND CONSUMERS WHO DRIVE THE BULK OF ECONOMIC ACTIVITY LOST THE SPENDING SPUNK THEY DISPLAYED IN THE SECOND HALF OF LAST YEAR THIS IS A GENUINE WEAKNESS IN THE PACE OF THE RECOVERY SAID LAURA TYSON CHAIRWOMAN OF PRESIDENT CLINTON'S COUNCIL OF ECONOMIC ADVISERS OTHER ECONOMISTS WERE EQUALLY GLUM ALTHOUGH THE ECONOMY IS GROWING THERE ARE CONTINUING PROBLEMS WITH SUSTAINING THE EXPANSION SAID BRUCE STEINBERG SENIOR ECONOMIST OF MERRILL LYNCH & CO IN NEW YORK WHAT TROUBLED ANALYSTS THE MOST ABOUT THE GDP FIGURES WAS THAT MUCH OF THE GROWTH LAST QUARTER SEEMED TO BE BASED SOLELY ON THE BUILDUP IN INVENTORIES THEY JUMPED 358 BILLION IN THE FIRST QUARTER AFTER GROWING ONLY ABOUT 10 BILLION IN THE PREVIOUS QUARTER WITHOUT THE BOOST FROM INVENTORIES THE ECONOMY WOULD HAVE ACTUALLY CONTRACTED 03 IN THE FIRST PERIOD THAT COULD BE BAD NEWS FOR THE FUTURE BECAUSE MANUFACTURERS MAY BEGIN SCALING BACK PRODUCTION AND RETAILERS MAY HOLD OFF PLACING ORDERS UNTIL INVENTORIES GET DOWN TO LOWER LEVELS IT ALSO MEANS MANUFACTURERS WON'T BE HIRING MANY NEW WORKERS THIS QUARTER THE MIX OF INVENTORIES TO SALES LOOKS A BIT OMINOUS SAID RICHARD BERNER CHIEF ECONOMIST FOR MELLON BANK IN PITTSBURGH AS MANUFACTURERS TRY TO GET RID OF THE STUFF ON THEIR SHELVES THINGS WILL DEFINITELY SLOW DOWN MUCH OF THE SLOWDOWN IN THE FIRST QUARTER CAME BECAUSE CONSUMERS CUT BACK SHARPLY ON THEIR PURCHASES CONSUMER SPENDING GREW AT AN ANNUAL RATE OF 12 COMPARED WITH THE STRONG 51 RATE OF THE FOURTH QUARTER THAT SLOWDOWN WAS SOMEWHAT EXPECTED ALTHOUGH CONSUMER OPTIMISM PICKED UP A BIT IN APRIL IT WAS ON A DOWNWARD SLOPE THROUGHOUT ALL OF THE FIRST QUARTER CONSUMERS REMAINED LEERY OF LABORMARKET CONDITIONS AND INCOME GROWTH WAS LACKLUSTER CONSUMERS BUILT UP A HIGH DEBT LOAD IN DECEMBER THEY GOT LITTLE IN THE WAY OF TAX REFUNDS BECAUSE OF LOWER WITHHOLDINGS AND THERE IS A FEAR OF TAX INCREASES SAID DONALD E MAUDE HEAD OF US FORECASTING FOR SCOTIAMCLEOD IN NEW YORK ALSO HOLDING BACK THE ECONOMY IN THE FIRST QUARTER WAS A 153 DROP IN FEDERAL PURCHASES THE LARGEST QUARTERLY DECLINE IN 20 YEARS MS TYSON SAID THAT SUCH A DECREASE ISN'T LIKELY TO REPEAT ITSELF SOON BUT THAT THE RATCHETING BACK OF DEFENSE OUTLAYS IS LIKELY TO KEEP FEDERAL SPENDING QUITE LEAN A WIDENING TRADE DEFICIT AND A DECLINE IN RESIDENTIAL CONSTRUCTION SPENDING ALSO SLOWED THE ECONOMY DOWN ANALYSTS SAID IT WASN'T CLEAR HOW MUCH OF THE SLOWDOWN WAS BROUGHT ABOUT BY BAD WEATHER IN FEBRUARY AND MARCH BUT SEVERAL ECONOMISTS SAY THEY ARE AWAITING THE APRIL EMPLOYMENT FIGURES TO BE RELEASED NEXT FRIDAY TO HELP DETERMINE WHICH WAY THE ECONOMY IS MOVING APRIL ECONOMIC INDICATORS HAVE BECOME VERY VERY IMPORTANT NOW SAID JOHN SILVIA CHIEF ECONOMIST FOR KEMPER SECURITIES IN CHICAGO IT WILL HELP SHOW US HOW MUCH OF THIS IS WEATHERRELATED AND HOW MUCH IS A FUNDAMENTAL SLOWDOWN EVEN BEFORE MUCH IS KNOWN ABOUT THE STRENGTH OF THE ECONOMY IN APRIL HOWEVER THE CLINTON ADMINISTRATION SAYS THE FIGURES ARE A SIGN THAT THE ECONOMY IS WEAKENING FUNDAMENTALLY AND NEEDS A SHOT OF STIMULUS SLOWER ECONOMIC GROWTH PLAINLY PROVES THAT THE ADMINISTRATION WAS RIGHT IN TRYING TO HEDGE AGAINST THIS ECONOMIC SLOW GROWTH BY PASSING THE JOBS BILL PRESIDENT CLINTON SAID AT A MEETING WITH DEMOCRATS ON THE HOUSE WAYS AND MEANS COMMITTEE IT PROVES THAT WE WERE RIGHT IN BOTH REDUCING THE DEFICIT AND IN TRYING TO CREATE SOME JOBS RIGHT NOW IN THIS ECONOMY THE FIXEDWEIGHT PRICE INDEX WHICH MEASURES THE PRICES PAID BY US RESIDENTS ROSE AT A 34 ANNUAL RATE IN THE FIRST QUARTER AFTER INCREASING AT A 29 PACE IN THE FOURTH PERIOD ECONOMISTS SAID THERE'S NO NEED TO WORRY ABOUT INFLATION BECAUSE CONSUMER PRICES SLOWED IN MARCH AFTER RISING AT A QUICKENED PACE IN JANUARY AND FEBRUARY ALSO THE BUILDUP IN INVENTORIES SUGGESTS THAT RETAILERS MAY HAVE TO RESORT TO PRICECUTTING TO GET UNWANTED MERCHANDISE OUT THE DOOR ONE PIECE OF GOOD NEWS IS THAT THE COMMERCE DEPARTMENT SAID SALES OF SINGLEFAMILY HOMES JUMPED 48 IN MARCH TO AN ANNUAL RATE OF 637000 THE RISE WAS THE LARGEST SINCE NOVEMBER AND ANALYSTS SAID IT MAY INDICATE THAT INCREASED AFFORDABILITY IS PERSUADING AMERICANS TO BUY NEW HOMES HOME SALES FELL IN THE SOUTH AND NORTHEAST PRESUMABLY BECAUSE OF THE WEATHER SEPARATELY THE LABOR DEPARTMENT SAID INITIAL CLAIMS FOR STATE UNEMPLOYMENT BENEFITS FELL 7000 IN THE WEEK ENDED APRIL 24 TO 349000 THE FOURWEEK MOVING AVERAGE OF CLAIMS WHICH IS A BETTER MEASURE OF LABORMARKET CONDITIONS FELL TO 352500 FROM 360000 THE PREVIOUS WEEK ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE SOME OF THE MAJOR COMPONENTS OF THE GROSS DOMESTIC PRODUCT EXPRESSED IN SEASONALLY ADJUSTED ANNUAL RATES IN BILLIONS OF CONSTANT 1987 DOLLARS IN THE FIRST QUARTER THE IMPLICIT PRICE DEFLATOR ROSE TO 1229 FROM 1219 IN THE PREVIOUS QUARTER 9304300004 930429 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 9304300003 930430 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED APRIL 23 ACCOUNTED FOR 91 OR AN AVERAGE 257 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 29 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 371 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 485 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 433 OF PROGRAM TRADING REFLECTED FIRMS' TRADING FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 387 WAS FOR CUSTOMERS AN ADDITIONAL 18 WAS EXECUTED BY FIRMS USING PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS COOPER NEFF DID ALL OF ITS PROGRAM TRADING FOR ITS OWN ACCOUNT WHILE NOMURA SECURITIES SPLIT ITS PROGRAM ACTIVITY BETWEEN ITS OWN ACCOUNT AND THOSE OF ITS CUSTOMERS MORGAN STANLEY BEAR STEARNS AND SALOMON BROTHERS DID MOST OF THEIR PROGRAM TRADING FOR CUSTOMERS 9304300002 930430 CLINTON APPEARS TO COOL ON PLAN FOR IRS TO COLLECT PAYMENTS OF STUDENT LOANS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON APPEARS TO BE BACKING AWAY FROM HIS PROPOSAL THAT THE INTERNAL REVENUE SERVICE COLLECT BILLIONS OF DOLLARS OF STUDENTLOAN PAYMENTS BUT THE ADMINISTRATION REMAINS DETERMINED TO TAKE OVER THE LOAN PROGRAM IN A SPEECH EXPECTED TO FOCUS ON HIS PROPOSED NATIONAL SERVICE PROGRAM MR CLINTON PLANS TODAY TO UNVEIL DETAILS OF HIS PLAN TO HAVE THE GOVERNMENT MAKE LOANS DIRECTLY TO COLLEGE AND TRADESCHOOL STUDENTS SPECIFICS OF THE PROGRAM HAVE BEGUN TO EMERGE FROM ADMINISTRATION DISCUSSIONS WITH BANKERS AND CONGRESSIONAL STAFFERS A GOVERNMENT TAKEOVER OF THE PROGRAM WOULD DRY UP A LUCRATIVE BUSINESS FOR 4000 BANKS DOZENS OF LOANGUARANTEE AGENCIES AND THE STUDENT LOAN MARKETING ASSOCIATION SALLIE MAE THE STOCKHOLDER OWNED GOVERNMENTCHARTERED COMPANY THAT MAKES A SECONDARY MARKET IN EDUCATION LOANS BANKS CURRENTLY MAKE 15 BILLION OF GUARANTEED STUDENT LOANS A YEAR TO 34 MILLION STUDENTS MANY OF THE LOANS ARE PURCHASED BY SALLIE MAE WHICH ISSUES SECURITIES BACKED BY THE LOANS MR CLINTON BELIEVES THE GOVERNMENT CAN SAVE NEARLY 43 BILLION OVER FIVE YEARS BY LENDING DIRECTLY TO STUDENTS UNDER HIS PLAN THE PROGRAM WOULD BE ADMINISTERED BY QUALIFIED EDUCATIONAL INSTITUTIONS OR BY CONTRACTORS WHO WOULD BID FOR THE WORK INITIALLY THE PRIVATE CONTRACTORS WOULD COLLECT THE LOANS ALTHOUGH THE GOVERNMENT WILL STUDY WHETHER THE IRS EVENTUALLY SHOULD BECOME THE COLLECTION AGENCY A MOVE THAT MANY BELIEVE WOULD SHARPLY REDUCE THE DEFAULT RATE OVER TIME SALLIE MAE WOULD SEE THE SECONDARY MARKET FOR STUDENT LOANS DRY UP ALTHOUGH IT COULD STILL EARN FEES BY SERVICING DIRECT STUDENT LOANS THE GOVERNMENT ESTIMATES THAT IT CAN REDUCE INTEREST RATES ON STUDENT LOANS BY AS MUCH AS HALF A PERCENTAGE POINT BY BORROWING FROM THE PUBLIC AS PART OF ITS NORMAL TREASURY FINANCING OPERATIONS AND LENDING DIRECTLY TO STUDENTS ADMINISTRATION OFFICIALS HAVE TOLD LENDERS THAT THEY PLAN TO PHASE THE PROGRAM IN OVER FOUR YEARS WITH DIRECT LENDING ACCOUNTING FOR 4 OF LOANS THE FIRST YEAR 25 THE SECOND 60 THE THIRD AND 100 IN THE FOURTH LATE YESTERDAY REPRESENTATIVES OF SALLIE MAE BANKS AND SOCALLED GUARANTORS MIDDLEMEN WHO HELP RUN THE PROGRAM WERE MEETING TO SEE IF THEY COULD AGREE ON A PROPOSAL TO OFFER AS AN ALTERNATIVE TO THE PRESIDENT'S PLAN THEY CLAIM THAT ONE VERSION DRAFTED BY A GROUP OF LOAN GUARANTORS WOULD ACHIEVE GREATER SAVINGS THAN THE PRESIDENT'S PLAN WHILE STILL PRESERVING A ROLE FOR BANKS GUARANTORS AND SALLIE MAE THEY SAY EACH GROUP WOULD EARN LESS MONEY FROM THE PROGRAM BEFORE PROCEEDING RAPIDLY WITH AN UNTESTED DIRECTLENDING PLAN WE SHOULD RETAIN WHAT WORKS AND IMPROVE WHAT DOESN'T SAID DANIEL CHEEVER THE PRESIDENT OF AMERICAN STUDENT ASSISTANCE A GUARANTEE AGENCY THE AMERICAN BANKERS ASSOCIATION ESTIMATES THAT BANKS EARN BETWEEN 300 MILLION AND 500 MILLION A YEAR FROM MAKING GUARANTEED STUDENT LOANS THAT WAS BETWEEN 1 AND 2 OF TOTAL BANKING INDUSTRY PROFITS LAST YEAR 9304300001 930430 INTERNATIONAL CONFIDENCE DIPS IN NEW ZEALAND WELLINGTON NEW ZEALAND AN INDEX OF BUSINESS CONFIDENCE IN NEW ZEALAND FELL 14 IN APRIL COMPARED WITH A 55 DECLINE IN MARCH ACCORDING TO A SURVEY BY NATIONAL BANK OF NEW ZEALAND LTD THE BANK'S INDEX OF BUSINESS CONFIDENCE SLIPPED TO 608 POINTS IN APRIL FROM 706 IN MARCH THE FALL IN CONFIDENCE IN APRIL PROBABLY REFLECTS THE PERSISTENCE OF HIGH BUSINESS AND MORTGAGE INTEREST RATES IN RECENT MONTHS AS WELL AS UNCERTAINTY ABOUT WHO WILL WIN NATIONWIDE ELECTIONS DUE TO BE HELD LATER THIS YEAR NATIONAL BANK SAID 9304300175 930331 TURNING A PAGE AS HOLOCAUST MEMORY FADES ISRAEL FACES A DIFFICULT TRANSITION POSTWAR GENERATION SEEKS A NEW KIND OF IDENTITY TO DISMAY OF SURVIVORS TRADING WITH THE GERMANS BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL JERUSALEM YITZHAK COHEN FORGETS NOTHING BUT ONE STORY IN PARTICULAR MARKS HIS DAYS AND NIGHTS IT IS 1943 AND HE IS YOUNG 20 YEARS OLD AND ON A STIFLING CATTLE CAR THAT HAS ARRIVED IN POLAND AFTER A WEEK'S TRAVEL FROM GREECE WHEN THE DOORS SLIDE OPEN HIS MOTHER CAN'T HUSTLE OFF THE CAR FAST ENOUGH AND SHE IS BEATEN BY GERMAN SOLDIERS HE RUSHES TO PROTECT HER BUT HE IS BEATEN AS SHE IS HAULED AWAY THAT IMAGE SEEMS FROZEN HIS REACHING HER SCREAMING BECAUSE IT IS THE LAST TIME HE SAW HIS MOTHER BEFORE SHE DISAPPEARED THROUGH THE GATES OF AUSCHWITZ MR COHEN NOW 70 RECOUNTS IT ALL WITHOUT A BREAK BEARING WITNESS FOR 50 ISRAELI SOLDIERS WHO LISTEN SOLEMNLY MACHINE GUNS ON THEIR LAPS IN AN AUDITORIUM AT YAD VASHEM ISRAEL'S MEMORIAL TO THE SLAUGHTER OF ONETHIRD OF THE JEWISH PEOPLE IN WORLD WAR II SOME WOULD SAY IT IS RECOLLECTIONS LIKE MR COHEN'S THAT HAVE HELPED FORGE THE STATE OF ISRAEL ITS FIERCE ARMY AND A JEWISH COMMUNITY WORLDWIDE THAT IN WORD AND DEED SINCE THE WAR HAS RESPONDED NEVER AGAIN BUT SOMETHING HAS CHANGED THE YOUNG SOLDIERS HERE AS PART OF THEIR BASIC TRAINING SAY MR COHEN'S STORY OFFERS THEM NO CLEAR MESSAGE THAT THINGS ARE DIFFERENT NOW THAT JEWS HAVE ATTAINED POWER AFTER SEVERAL SOLDIERS SUGGEST THAT THE HOLOCAUST SHOULD MAKE ISRAELIS MORE SENSITIVE TO HARASSMENT OF PALESTINIANS IN THE ISRAELIOCCUPIED WEST BANK AND THE GAZA STRIP MR COHEN ERUPTS NOTHING WE DO THERE COULD EVER COMPARE TO WHAT THE NAZIS DID TO US HOW CAN YOU EVEN MAKE SUCH A COMPARISON ONE SOLDIER REFUSES TO BACK DOWN I'M NOT SAYING WE'RE NAZIS HE RESPONDS BUT IN THE OCCUPIED TERRITORIES THERE ARE ISRAELI SOLDIERS WHO HUMILIATE ARABS FOR NO REASON JUST BECAUSE THEY'RE ARABS WE DON'T NEED TO JUST KEEP ONE HAND ON OUR GUNS WE SHOULD ALSO KEEP ONE HAND ON OUR PULSE A PAINFUL MEMORY IS FADING AS THE GENERATION WHO SURVIVED THE HOLOCAUST GROWS OLD AND PASSES AWAY THE DEFINING EVENT IS NATURALLY SLIPPING FROM HEARTFELT TO MERELY HISTORICAL CAUSING SOMETHING OF AN IDENTITY CRISIS AMONG JEWS IN ISRAEL AND ELSEWHERE THE HOLOCAUST AND ITS COMMON TRAGIC LESSON WAS A BOOSTER SHOT FOR JEWS WORLDWIDE SAYS BARRY SHRAGE HEAD OF BOSTON'S COMBINED JEWISH PHILANTHROPIES BUT FOR A WHOLE GENERATION BORN AFTER THE HOLOCAUST THIS BURNING MEMORY IS LESS COMPELLING AS WE MOVE FURTHER AND FURTHER AWAY FROM THE HOLOCAUST WE'RE ON SHAKY GROUND FROM THE STANDPOINT OF JEWISH IDENTITY BITTER LESSONS OF THE HOLOCAUST HAVE BEEN MORTAR BINDING JEWS OF DISPARATE BACKGROUNDS AND CULTURES HELPING TO CREATE ISRAEL IN 1948 AS A PLACE WHERE JEWS COULD ALWAYS FIND REFUGE AND HELPING IT ATTRACT DONATIONS FROM ACROSS THE GLOBE EVER SINCE THE HOLOCAUST MENTALITY JEWISH SCHOLARS SAY HELPED PROMPT ACHIEVEMENT AMONG MANY JEWS SINCE WORLD WAR II ESPECIALLY IN THE US SUCCESS SPURRED BY THE RELISH OF SIMPLY BEING ALIVE AND COLORED BY THE GUILT OF HAVING SURVIVED WHEN SO MANY DID NOT HOW JEWISH IDENTITY MAY SHIFT AS THE HOLOCAUST FADES IS A SUBJECT OF INTENSE DEBATE WILL IT MEAN A LESS DEFENSIVE POLITICAL POSTURE ESPECIALLY IN THE STATE OF ISRAEL WHERE LEADERS WHO LOST FAMILY MEMBERS IN THE HOLOCAUST SUCH AS MENACHEM BEGIN SHIMON PERES AND YITZHAK SHAMIR HAVE DOMINATED PUBLIC LIFE FOR DECADES OR MAYBE AN ACCELERATED ASSIMILATION NOTABLY IN THE US WHERE 52 OF JEWS ALREADY MARRY OUTSIDE THE FAITH MANY PRODUCING CHILDREN WITH A TENUOUS CONNECTION TO JUDAISM IT IS NOT THAT ANYONE HAS FORGOTTEN THE HOLOCAUST OR THAT JEWS OF ANY AGE SEEK TO PLAY DOWN ITS HORROR BUT THERE IS LITTLE IN THE LIVES OF MOST POSTWAR JEWS THAT CONNECTS THEM WITH THIS EVENT OF PROFOUND DEVASTATION LITERALLY A THREAT OF EXTINCTION THIS IS TROUBLING TO MANY OLDER JEWS WHO WORRY THAT SUCH CASUALNESS WILL RESULT IN LESSENED VIGILANCE AGAINST TYRANNY OR AGAINST MORE SUBTLE THREATS SUCH AS DISAPPEARING INTO A CHRISTIAN MAJORITY ONE RESPONSE HAS BEEN TO CAPTURE AND BURNISH FADING HOLOCAUST RECOLLECTIONS IN EFFECT TO SPEAK LOUDER AS THE AUDIENCE'S ATTENTION WANES THREE NEW MEMORIALS ARE OPENING IN THE US INCLUDING THE US HOLOCAUST MEMORIAL MUSEUM IN WASHINGTON WHICH OPENS NEXT MONTH ON DONATED FEDERAL LAND NOWHERE IS THE CONFLICT AND CONFUSION MORE WRENCHING HOWEVER THAN IN ISRAEL WHERE ROUGHLY ONE IN EVERY 17 RESIDENTS IS A HOLOCAUST SURVIVOR SOMEONE WHO LIVED UNDER OCCUPATION BY GERMANY OR ITS ALLIES BETWEEN 1939 AND 1945 INCLUDING THOSE IN CONCENTRATION OR LABOR CAMPS IN GHETTOS OR IN HIDING BUT WITH THE AVERAGE AGE FOR ISRAEL'S 290000 SURVIVORS MORE THAN HALF THE WORLD'S SURVIVORS NEARING 70 AND ANNUAL MORTALITY RATES DUE TO REACH 10 BY THE LATE 1990S THEY ARE A FADING VOICE IN THEIR PLACE COMES THE GENERATION OF JEWS MANY YOUNG AND MIDDLEAGED ADULTS NOW ASSUMING POLITICAL AND SOCIAL POWER FOR WHOM THE HOLOCAUST IS SOMEONE ELSE'S MEMORY FOR US THE DISASTER OF THE HOLOCAUST IS LESS PERSONAL SAYS DEDI ZUCKER A 44YEAROLD MEMBER OF PARLIAMENT'S LEFTWING MERETZ PARTY IT STILL HAS IMPACT BUT IT'S ON A MORE ABSTRACT COLLECTIVE LEVEL AND WE'RE RELUCTANT TO USE IT POLITICALLY WHILE MENACHEM BEGIN OFTEN INVOKED THE HOLOCAUST AS A WARNING THAT JEWS MUST ALWAYS REMAIN VIGILANT HIS SON ZE'EV A LEADER OF THE LIKUD PARTY RARELY MENTIONS IT I FEEL VERY STRONGLY ABOUT THE ISSUE AND FEEL IT SHAPES THE IDENTITY OF THIS NATION SAYS ZE'EV BEGIN BUT ONE THING TO TAKE INTO ACCOUNT IS THE TIME THAT HAS ELAPSED FORTY YEARS AGO IT WAS ONLY 10 YEARS PAST THE EVENT TODAY IT IS 50 YEARS THAT DOES SOMETHING TO THE FREQUENCY OF THE DISCUSSION COBI MOISE A 32YEAROLD TEL AVIV BUSINESSMAN WHOSE FATHER A HOLOCAUST SURVIVOR DIED IN 1989 SAYS HE WON'T PASS ON THE BURDENS HE GREW UP WITH I DON'T SEE MY CHILDREN AS SOME SORT OF THIRD GENERATION OF HOLOCAUST SURVIVORS HE SAYS LUNCHING AT A TEL AVIV CAFE WHERE YOUNG PROFESSIONALS GATHER I JUST SEE THEM AS NORMAL ISRAELI KIDS ACROSS THE TABLE 30YEAROLD YORAM COHEN SAYS HIS BOSS A HOLOCAUST SURVIVOR RECENTLY REBUFFED A GERMAN FINANCIER WHO WANTED TO INVEST IN HIS MEDICAL SUPPLIES COMPANY HE LOST A LOT OF MONEY BECAUSE HE REFUSES TO DO BUSINESS WITH GERMANS SAYS MR COHEN I WOULD HAVE TAKEN THE DEAL SUCH OPINIONS HAVE BECOME MAINSTREAM THOUGH THE ISRAELI PHILHARMONIC ORCHESTRA REVERSED PLANS IN 1991 TO PLAY THE MUSIC OF RICHARD WAGNER A FAVORITE OF HITLER AFTER PROTESTS FROM SURVIVORS POLLS SHOWED ONLY 30 OF SUBSCRIBERS OBJECTED TO THE MUSIC'S BEING PLAYED SIMILARLY COPIES OF MEIN KAMPF HITLER'S AUTOBIOGRAPHY ARE NOW STUDIED IN AN ISRAELI UNIVERSITY AFTER BEING BANNED FOR DECADES NEXT TO THE US GERMANY IS NOW ISRAEL'S LARGEST TRADING PARTNER COZINESS WITH ANYTHING GERMAN WOULD HAVE BEEN UNTHINKABLE 10 YEARS AGO OUT OF RESPECT FOR SURVIVORS TIMES HAVE CHANGED A HOT PLAY IN ISRAEL THESE DAYS IS ABOUT A HOLOCAUST SURVIVOR WHO BECOMES A VENGEFUL SLUMLORD AND IS DEPICTED AS MANIPULATIVE AND CRASS THE PLAY CALLED SINGER IS ESPECIALLY POPULAR WITH YOUNG PEOPLE BECAUSE THEY'RE READY TO SEE A SURVIVOR WHO ISN'T A SAINT SAYS THE PLAY'S DIRECTOR MICAH LEWENSOHN PRIME MINISTER YITZHAK RABIN SENSING THE SHIFT HAS RECENTLY COMMENTED THAT THERE IS NOTHING WRONG WITH JEWS LOSING WHAT HE CALLED THEIR SIEGE MENTALITY YET IN A POIGNANT SPEECH LAST SUMMER TO THE WORLD ZIONIST CONGRESS HE WONDERED WHAT WILL BE THE LINK BETWEEN US WHEN THE LONGEDFOR DAY ARRIVES WHEN THERE WILL BE NO MORE BLOODSHED NO TEARS NO DANGER AT UNITED JEWISH APPEAL AN UMBRELLA FUNDRAISING ORGANIZATION FOR US JEWS' CONTRIBUTIONS TO ISRAEL OFFICIALS ARE CONCERNED THAT DONATIONS WILL SAG AS DONORS AGE WE NOW NEED TO APPEAL TO A GENERATION THAT HAS NO PERSONAL RECALL OF LIFE WITHOUT ISRAEL OR LIFE DURING THE HOLOCAUST SAYS YAEL SEPTEE 37 THE DIRECTOR OF THE ORGANIZATION'S YOUNG LEADERSHIP CABINET THIS GENERATION DOESN'T HAVE THE SAME MOTIVATION TO GIVE AS MY PARENTS' GENERATION EVEN AT YAD VASHEM IN JERUSALEM THE MOST RENOWNED OF HOLOCAUST MEMORIALS A GENERATIONAL PASSAGE IS OCCURRING THE SURVIVOR HAS BECOME A PRIEST PREACHING TO YOU WHAT IS RIGHT AND WHAT IS WRONG AND BECAUSE OF HIS STORY HE IS HOLY SAYS SHALMI BARMORE 47 THE EDUCATION DIRECTOR AT THE MEMORIAL WHO NOTES THAT YAD VASHEM'S BOARD MEMBERS ARE RAPIDLY BEING REPLACED BY THOSE WITH NO RECOLLECTION OF THE WAR WHEN THE SURVIVORS ARE NO LONGER HERE IT WILL BE LIKE A SCREEN BEING LIFTED THERE'LL BE MORE FREEDOM TO SPEAK AND GO IN DIVERSE DIRECTIONS OR FREEDOM TO FORGET ABOUT THE HOLOCAUST ALTOGETHER FEARS URI ALONI IN 1937 AS A 14YEAROLD HE SAID GOODBYE TO HIS PARENTS AND STEPPED ABOARD ONE OF THE LAST TRAINS TO SAFELY TRANSPORT JEWS FROM NAZI GERMANY NOW 70 HIS FAMILY HAVING LONG AGO PERISHED UNDER HITLER MR ALONI ANXIOUSLY PACES A CLASSROOM IN A KIBBUTZ NEAR THE ISRAELI COASTAL TOWN OF NETANYA WHERE HE IS LEADING A SEMINAR ON THE HOLOCAUST FOR ISRAELIS TRAINING TO BE TEACHERS WHAT DOES THE HOLOCAUST MEAN TO YOU AS ISRAELIS HE ASKS THE STUDENTS NO RESPONSE THE ROOM FEELS STUFFY AND SOMEONE OPENS A WINDOW TO LET AN AFTERNOON BREEZE STIR THE AIR MOVING TO THE BLACKBOARD MR ALONI HOLDS UP A PIECE OF CHALK POISED TO WRITE AND QUERIES WHAT'S THE DATE OF HOLOCAUST MEMORIAL DAY SILENCE HE WAITS A FEW STUDENTS LOOK AWAY IT'S THE SAME DATE EVERY YEAR HE MUTTERS VISIBLY ANNOYED AFTER CLASS MR ALONI HAS CALMED SOMEWHAT ONETHIRD OF THE JEWISH NATION WAS KILLED DURING THE HOLOCAUST THIS ISN'T JUST ANOTHER POGROM IN JEWISH HISTORY HE SAYS BUT I'M TROUBLED ABOUT HOW TO HAND OVER THIS LEGACY WE CAN'T TRANSFER THE ATMOSPHERE TO THESE KIDS THEY DON'T UNDERSTAND THE FEAR AND HELPLESSNESS WE FELT MY OWN GRANDCHILDREN DON'T EVEN ASK ME ABOUT IT WE HAVE TO FACE REALITY FOR THESE KIDS LIFE GOES ON SOME HOWEVER WELCOME THE RISE OF A GENERATION FOR WHOM THE HOLOCAUST ISN'T EMOTIONALLY INTENSE SAYS RABBI IRVING GREENBERG THE PRESIDENT OF THE NATIONAL JEWISH CENTER FOR LEARNING AND LEADERSHIP IN NEW YORK THROUGHOUT JEWISH HISTORY HE SAYS THERE HAVE ALWAYS BEEN CERTAIN EVENTS THAT JEWS LIVED AND THEN LIVED BY THE MOST NOTABLE BEING THE EXODUS FROM EGYPT CELEBRATED NEXT WEEK AT PASSOVER WHERE ONLY THE CHILDREN OF THOSE ONCE ENSLAVED BY PHARAOH WERE ULTIMATELY PERMITTED TO ENTER THE PROMISED LAND THE EXPERIENCE OF SLAVERY WASN'T AS EMOTIONALLY IMMEDIATE FOR THEM BUT IN THE END THEY WERE THE ONES WHO COULD FUNCTION EFFECTIVELY WITH THE MEMORY SAYS RABBI GREENBERG FOR THE HOLOCAUST JUST AS IT WAS IN THE STORY OF EXODUS IT IS THE GENERATION THAT DIDN'T LIVE THE EXPERIENCE THAT IS BETTER AT FUNCTIONING WITH IT A FEW HOURS AFTER HIS CONFRONTATION WITH THE SOLDIER AT YAD VASHEM YITZHAK COHEN IS STILL SHAKEN I WAS ANGRY WITH HIM VERY ANGRY HE SAYS NOTHING CAN BE COMPARED TO THE HOLOCAUST AS MR COHEN SPEAKS HE GETS OUT A VIDEOCASSETTE OF A TRIP HE MADE WITH OTHER SURVIVORS AND THEIR ISRAELIBORN CHILDREN BACK TO THE CAMP WHERE HE SPENT 18 MONTHS IT IS A STRANGE SCENE A COURTLY MAN IN A MIDDLECLASS JERUSALEM HOME WATCHING HIMSELF ON TELEVISION AS HE POINTS OUT THE SPOT WHERE HIS SISTERS WERE TAKEN TO THE GAS CHAMBERS HE CONTINUES TO SPEAK BUT HE CAN'T SEEM TO DRAG HIS EYES FROM THE SCREEN WHERE HE IS NOW STANDING IN A CATTLE CAR LIKE THE ONE THAT BROUGHT HIM TO THE DEATH CAMP FOR A MOMENT HE IS SILENT OUR GENERATION IS DYING HE FINALLY SAYS FREEZING THE PICTURE AND WHEN HE LOOKS UP HIS EYES ARE FILLED WITH TEARS WE ARE IN THE HANDS OF THE YOUNG MR COHEN'S ANGST ECHOED BY MANY OLDER JEWS HAS SPURRED VARIOUS PROGRAMS AND MEMORIALS TO SHORE UP ERODING CONNECTIONS TO THE HOLOCAUST 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 THIS YEAR HOWEVER ISRAEL'S EDUCATION MINISTER SHULAMIT ALONI CONSIDERED CANCELING THE TRIPS SAYING THEY TURN STUDENTS INTO FLAGWAVING XENOPHOBES AND EMPHASIZE THE FACT THAT WE WERE VICTIMS AND THAT VICTIMS CAN DO NO WRONG SIMILAR ENDEAVORS TO CAPTURE FADING HOLOCAUST RECOLLECTIONS HAVE BEEN LED IN AMERICA BY CREATION OF THE US HOLOCAUST MEMORIAL MUSEUM WHERE ARCHITECTURAL FEATURES REMINISCENT OF THE DEATH CAMPS WILL MESH WITH PHOTOS RECORDINGS AND ARTIFACTS TO LEAVE THE STRONGEST EMOTIONAL IMPACT POSSIBLE AT THE 50 MILLION MUSEUM OF TOLERANCE AT THE SIMON WIESENTHAL CENTER IN LOS ANGELES WHICH OPENED IN FEBRUARY TELEVISION SCREENS COMPUTERS AND VIDEOS THAT SOME CRITICS HAVE CALLED MTV EFFECTS TELL THE HOLOCAUST STORY TO YOUNGSTERS HIGHTECH SLICKNESS MAKES THE MESSAGE OF THE HOLOCAUST COMPELLING AND DRAMATIC SAYS RABBI MARVIN HIER FOUNDER OF THE CENTER OTHERWISE HE SAYS WE WON'T COMMUNICATE WITH THIS GENERATION BUT SUCH EFFORTS CARRY A GRAIN OF FUTILITY SAYS HILLIE MUDRICK A YOUNG ISRAELI JOURNALIST WHO HAS WRITTEN ABOUT HOLOCAUST SURVIVORS WHAT THEY FELT WE WON'T FEEL NO MATTER HOW HARD WE TRY OR HOW MUCH WE WANT TO IDENTIFY WITH THEM SHE SAYS SHE AND MOST OTHER YOUNG JEWS CAN OF COURSE TALK THOUGHTFULLY ABOUT THE HOLOCAUST BUT AS ONE OF URI ALONI'S TEACHER TRAINEES REMARKED FOR US IT IS HISTORY A PLACE IN HISTORY ANOTHER POGROM AMONG MANY IS WHERE SOME JEWS FEEL THE HOLOCAUST NOW BELONGS BECAUSE I WAS BOMBARDED WITH IT I WANT SPACE FROM IT NOW SHE ADDS SITTING IN HER MOTHER'S LIVING ROOM IN A TEL AVIV SUBURB AS THE TWO DISCUSS FOR THE FIRST TIME THEIR DIVERGENT VIEWS OF A CENTRAL EVENT IN BOTH THEIR LIVES WHEN MY CHILDREN WERE GROWING UP SAYS MALKA DORFMAN 76 WE SPOKE ABOUT THE WAR ALL THE TIME NOW THEY DON'T WANT TO HEAR ABOUT IT THEY THINK I TALK TOO MUCH ABOUT IT WITHOUT PROMPTING MRS DORFMAN BRINGS OUT A BOOK MEMORIALIZING THE JEWS OF KOZIENICE THE POLISH TOWN WHERE SHE GREW UP FLIPPING THROUGH THE PAGES SHE POINTS TO WEDDING PICTURES OF FAMILY AND FRIENDS WHO WERE KILLED PHOTOS OF PLAYS BEING PUT ON AT THE COMMUNITY CENTER THE GATES TO THE JEWISH CEMETERY A WHOLE CULTURE AND COMMUNITY DESTROYED HER DAUGHTER SITS ON THE COUCH SILENTLY WATCHING AS HER MOTHER LOSES HERSELF IN THE PHOTOGRAPHS HE WAS A DOCTOR SUCH A PRETTY WIFE SUCH NICE CHILDREN SHE SAYS POINTING AT ONE PHOTO HE KILLED HIMSELF RATHER THAN GET ON THE TRAIN TO THE CONCENTRATION CAMP AS SHE IS SPEAKING HER GRANDCHILDREN RUN INTO THE HOUSE AND GRAB AT THE COOKIES SHE HAS SET OUT FOR A VISITOR SHE DOESN'T SPEAK WITH THEM ABOUT THE HOLOCAUST SHE SAYS SO AS NOT TO BURDEN THEM EVERY YEAR SHE ATTENDS A MEMORIAL HELD BY MEMBERS OF THE TOWN WHERE HER LATE HUSBAND GREW UP AND SHE NOTICES THAT VIRTUALLY NONE OF THE SURVIVORS' ADULT CHILDREN BOTHER TO COME ANYMORE EVERY NIGHT I DREAM ABOUT WHAT I SAW I REMEMBER EVERYTHING SHE SAYS CLOSING THE ALBUM I SHOULD WRITE IT ALL DOWN BUT WHO WOULD WANT TO READ IT SEE RELATED LETTERS LETTERS TO THE EDITOR IN THE ABSENCE OF LOVE HATRED AND EVIL WSJ APRIL 30 1993 9303310119 9304300166 930322 THOUGH RISK FALLS REMOVING ASBESTOS DOESN'T GUARANTEE SUBSTANCE IS GONE BY DAVID STIPP STAFF REPORTER OF THE WALL STREET JOURNAL A LOT OF MONEY GOES TOWARD REMOVING ASBESTOS AN ESTIMATED 3 BILLION LAST YEAR IN THE US BUT AT LEAST IT IS SAVING LIVES OR IS IT THE LEVELS OF AIRBORNE ASBESTOS FIBERS IN BUILDINGS AFTER REMOVAL OF MATERIALS CONTAINING THE SUBSTANCE DON'T NECESSARILY DROP IN MANY CASES THEY RISE SUGGEST RECENT STUDIES MOREOVER THE TYPE OF ASBESTOS MOSTLY PRESENT IN US BUILDINGS POSES LITTLE CANCER RISK IN THE FIRST PLACE SAY MANY SCIENTISTS INDEED SCIENTIFIC THINKING ABOUT ASBESTOS HAS UNDERGONE A DRAMATIC REVERSAL FROM THE VIEW THAT A TINY WHIFF CAN CAUSE CANCER THE SHIFT WAS UNDERSCORED BY AN ARTICLE PUBLISHED IN THE JOURNAL SCIENCE IN EARLY 1990 THAT CONCLUDED ASBESTOS RISKS HAVE BEEN EXAGGERATED AFTER IT APPEARED FORMER ENVIRONMENTAL PROTECTION AGENCY ADMINISTRATOR WILLIAM REILLY ACKNOWLEDGED THAT MANY ASBESTOSREMOVAL PROJECTS WERE UNNECESSARY IN 1991 THE AMERICAN MEDICAL ASSOCIATION RECOMMENDED WORRYING LESS ABOUT ASBESTOS AND MORE ABOUT FAR GREATER CAUSES OF PREMATURE DEATH SUCH AS SMOKING SOME 95 OF THE ASBESTOS IN US BUILDINGS IS A FORM CALLED CHRYSOTILE WHICH MANY SCIENTISTS NOW SAY IS RELATIVELY HARMLESS ITS CURLY STRANDS ARE READILY DISSOLVED IN THE LUNGS BY IMMUNE CELLS BY CONTRAST RARER AMPHIBOLE TYPES OF ASBESTOS WHICH CAN OCCUR IN SMALL AMOUNTS ALONG WITH CHRYSOTILE FORM LONG THIN STRANDS THAT CAN PENETRATE AND REMAIN DEEP IN THE LUNGS STUDIES INDICATE THE AMPHIBOLE FORMS HAVE BEEN THE CULPRITS IN MOST ASBESTOSCANCER CASES IT TAKES LONG HEAVY EXPOSURE TO ASBESTOS PROBABLY COUPLED WITH SMOKING TO CAUSE SIGNIFICANT RISK OF LUNG CANCER SAY SCIENTISTS AIRBORNE ASBESTOS LEVELS IN BUILDINGS CONTAINING THE MATERIAL ON AVERAGE ARE ABOUT 50000 TIMES LOWER THAN THE LEVELS THAT ASBESTOS WORKERS WHO GOT CANCER WERE EXPOSED TO IN THE PAST ACCORDING TO A 1991 REPORT BY THE HEALTH EFFECTS INSTITUTE IN CAMBRIDGE MASS EVEN AFTER QUITE HEAVY ASBESTOS EXPOSURE LUNG CANCER AMONG NONSMOKERS IS SO RARE THAT THE ADDED RISK FROM ASBESTOS CAN'T BE PRECISELY ESTIMATED THE REPORT STATED IN THE LARGEST STUDY OF CHRYSOTILE EXPOSURE SCIENTISTS FOUND THAT 11000 QUEBEC ASBESTOS MINERS AND OTHERS WITH HIGH EXPOSURES FOR AS LONG AS 20 YEARS ACTUALLY HAD LESS RISK OF LUNG CANCER THAN THE GENERAL POPULATION HEAVY ASBESTOS EXPOSURE ALSO CAN CAUSE MESOTHELIOMA A CANCER THAT RARELY OCCURS WITHOUT SUCH EXPOSURE BUT MESOTHELIOMA RATES AMONG PEOPLE UNDER AGE 55 HAVE DROPPED SINCE THE 1970S SUGGESTING THAT LOW NONOCCUPATIONAL EXPOSURE TO ASBESTOS IN BUILDINGS POSES LITTLE IF ANY RISK OF THE CANCER EVEN IF THE ENTIRE US POPULATION WORKED FOR 20 YEARS IN BUILDINGS CONTAINING THE MOST DANGEROUS FORMS OF ASBESTOS THE MESOTHELIOMA RATE WOULD RISE TO AT MOST ABOUT 410 CASES ANNUALLY FROM 400 CASES SAYS THE HEALTH EFFECTS INSTITUTE'S REPORT CURRENTLY ASBESTOS IN BUILDINGS OFTEN IS MANAGED IN PLACE WITHOUT REMOVAL BUT MANY BUILDING OWNERS STILL OPT FOR REMOVAL LARGELY TO AVOID THE RISK OF LAWSUITS SOME ASBESTOS EXPERTS ASSERT THAT SUCH REMOVALS ARE NEEDED TO PREVENT CANCER AMONG MAINTENANCE WORKERS WHO OFTEN COME INTO CONTACT WITH THE SUBSTANCE BUT REMOVAL WORKERS PROBABLY FACE A GREATER RISK OF EXPOSURES HIGH ENOUGH TO CAUSE CANCER IN ANY CASE REMOVALS OFTEN DON'T SEEM TO DO MUCH GOOD IN ONE HIGH SCHOOL AIRBORNE ASBESTOS LEVELS ROSE TENFOLD AFTER A REMOVAL THAT WAS AS WELL RUN AND CONTROLLED AS IS FEASIBLE ACCORDING TO A PRELIMINARY REPORT ON THE PROJECT COMPILED BY GERARD RYAN AN OFFICIAL WITH THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION IN DENVER WE SPEND AN AWFUL LOT OF TAXPAYER MONEY ON ASBESTOS REMOVALS WITHOUT DECREASING RISK SAYS MR RYAN HIS PRELIMINARY DATA SHOW THAT THE SCHOOL'S ASBESTOS LEVELS ROSE 1160 AFTER A 250000 REMOVAL OF INSULATION CEILING TILES AND OTHER MATERIALS MORE THAN A YEAR AFTER REMOVAL LEVELS HAD RISEN FURTHER THE HIGHER LEVELS PROBABLY REFLECT PARTICULARLY SHORT ASBESTOS FIBERS THAT ESCAPED DURING ABATEMENT SAYS MR RYAN HE WON'T NAME THE SCHOOL PENDING A COMPLETE REPORT ON THE CASE OTHER STUDIES HAVE FOUND SIMILAR RESULTS THE EPA REPORTED LAST YEAR THAT AVERAGE ASBESTOS LEVELS HAD RISEN TWO YEARS AFTER ABATEMENT PROJECTS AT NINE OF 17 NEW JERSEY SCHOOLS WITH STATISTICALLY HIGHER LEVELS AT TWO SITES THERE WAS A STATISTICALLY SIGNIFICANT DECREASE IN LEVELS AT ONLY SIX OF THE SCHOOLS STEVE HAYS PRESIDENT OF THE ENVIRONMENTAL INFORMATION ASSOCIATION A TRADE GROUP REPRESENTING THE ABATEMENT INDUSTRY CALLS SUCH FINDINGS AMAZING AND SAYS THAT THERE IS A LARGE BODY OF DATA SHOWING REMOVALS GENERALLY CUT LEVELS TO BACKGROUND LEVELS FOUND OUTDOORS BUT THE CONTINUING NEW JERSEY STUDY SUGGESTS MUCH INDUSTRY DATA ARE INACCURATE HALF OF 20 SCHOOL ABATEMENT PROJECTS THAT MONITORING FIRMS HAD RATED AS REDUCING FIBERS TO FEDERALLY REQUIRED LEVELS FLUNKED MORE STRINGENT TESTING PROBLEMS WITHIN THE ASBESTOSABATEMENT INDUSTRY AREN'T LIMITED TO DUBIOUS PRACTICES BY SMALLTIME OPERATORS THE EPA HAS CHARGED IN AN ADMINISTRATIVE ACTION THAT THE INDUSTRY'S LARGEST CONSULTANT HALLKIMBRELL ENVIRONMENTAL SERVICES INC A UNIT OF PROFESSIONAL SERVICE INDUSTRIES INC OF LOMBARD ILL CONDUCTED FAULTY INSPECTIONS AT MORE THAN 100 SCHOOLS NATIONWIDE AN ATTORNEY FOR THE COMPANY DECLINED TO COMMENT THOUGH SPENDING ON ASBESTOS ABATEMENTS IN THE US HAS DROPPED LARGELY BECAUSE THE RECESSION HAS SLOWED RENOVATIONS INDUSTRY CONSULTANT OLIN JENNINGS ESTIMATES SOME 80 BILLION WILL BE SPENT OVER THE NEXT 20 YEARS OR SO SEE RELATED LETTER LETTERS TO THE EDITOR ASBESTOS REMOVAL AND RIPOUT ARTISTS' WSJ APRIL 30 1993 9303220029 9304290179 930429 WHO'S NEWS BRODERBUND SOFTWARE INC BRODERBUND SOFTWARE INC NOVATO CALIF SCOTT COOK PRESIDENT OF INTUIT INC WAS NAMED TO THE BOARD OF THIS SOFTWARE CONCERN THE ADDITION OF MR SCOTT 40 YEARS OLD WHOSE MENLO PARK CALIFBASED INTUIT WENT PUBLIC LAST MONTH INCREASES THE BOARD TO SEVEN MEMBERS 9304290178 930429 WHO'S NEWS SHERWINWILLIAMS CO SHERWINWILLIAMS CO CLEVELAND A MALACHI MIXON III 52 YEARS OLD CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF INVACARE CORP WAS NAMED A DIRECTOR OF THIS MAKER OF CHEMICALS AND COATINGS HE SUCCEEDS J ROBERT KILLPACK WHO RETIRED FROM THE BOARD 9304290177 930429 WHO'S NEWS ELDORADO BANCORP ELDORADO BANCORP TUSTIN CALIF THOMAS H NIELSEN WAS ELECTED A DIRECTOR OF THE BANK HOLDING CONCERN SUCCEEDING GUY K CLAIRE WHO RETIRED FROM THE BOARD MR NIELSEN 62 YEARS OLD IS A CONSULTANT ON REALESTATE DEVELOPMENT 9304290176 930429 RECOGNITION COMPLETES OFFERING DALLAS RECOGNITION INTERNATIONAL INC SAID IT COMPLETED ITS OFFERING OF TWO MILLION COMMON SHARES FOR 13 A SHARE THE MAKER OF DOCUMENTRECOGNITION SYSTEMS SAID THE PROCEEDS WILL BE USED TO REPAY BANK DEBT AND FOR GENERAL CORPORATE PURPOSES INCLUDING WORKING CAPITAL PRODUCT DEVELOPMENT AND ACQUISITIONS THE OFFERING WAS MANAGED BY BEAR STEARNS & CO 9304290174 930429 WHO'S NEWS WOODHEAD INDUSTRIES INC WOODHEAD INDUSTRIES INC BUFFALO GROVE ILL DALE A MILLER CHIEF EXECUTIVE OFFICER AND PRESIDENT OF SANDOZ AGRO INC IN DES PLAINES ILL WAS NAMED A DIRECTOR OF THIS MAKER OF ELECTRICAL DEVICES THE ELECTION OF MR MILLER 46 YEARS OLD INCREASES THE BOARD TO EIGHT DIRECTORS 9304290173 930429 CORPORATE FOCUS BT FACES A LINE OF POTENTIAL INTERNATIONAL COMPETITORS RIVALS WILL PRODUCE MAJOR CHANGES IN BRITISH TELECOMMUNICATIONS SERVICES BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON A SWARM OF NEW COMPETITORS IS STARTING TO BUZZ AROUND BRITISH TELECOMMUNICATIONS PLC'S RICHEST MOST PROFITABLE BUSINESS INTERNATIONAL CALLING AMERICAN TELEPHONE & TELEGRAPH CO OF NEW YORK WHICH LAST WEEK APPLIED FOR BRITISH GOVERNMENT PERMISSION TO START TELEPHONE SERVICES HERE IS JUST THE MOST RECENT AND MOST PUBLICIZED CONTENDER AT LATEST COUNT ACCORDING TO BRITAIN'S DEPARTMENT OF TRADE AND INDUSTRY 18 COMPANIES HAVE APPLIED FOR VARIOUS KINDS OF BASIC TELEPHONESERVICE LICENSES IN BRITAIN THEY INCLUDE SPRINT INTERNATIONAL INC A UNIT OF USBASED SPRINT CORP AND THE AUSTRALIAN AND SWEDISH PHONE COMPANIES THEY ALSO INCLUDE THE LIKES OF NATIONWIDE LINKLINE EUROPE LTD AN EIGHTEMPLOYEE UPSTART COMPANY THAT HOPES TO WIN BRITISH GOVERNMENT CLEARANCE LATER THIS YEAR TO START A SMALL CUTPRICE SERVICE CONNECTING VOICEMAIL FAX AND OTHER BUSINESS CALLS BETWEEN BRITAIN AND THE REST OF THE WORLD MIGHTY BT THE UK'S DOMINANT PHONE COMPANY DOES 179 BILLION A YEAR 282 BILLION IN THE INTERNATIONAL TELEPHONECALLING BUSINESS ALTHOUGH POLITICAL HURDLES MAY DELAY AT&T'S LICENSE MOST OF THE APPLICANTS ARE EXPECTED TO GET THE GOVERNMENT'S GOAHEAD AND THE EFFECT IN BRITAIN WILL BE DRAMATIC OVER THE NEXT FIVE YEARS ONE LONDON INDUSTRY ANALYST ESTIMATES BT'S SHARE OF THE BRITISH TELECOMMUNICATIONSSERVICE MARKET WILL SLIP TO 83 FROM TODAY'S LEVEL OF BETWEEN 92 AND 95 A GRADUAL DECLINE IN LONGDISTANCE TELEPHONE TARIFFS IN BRITAIN WILL PICK UP SPEED ESPECIALLY ON CALLS TO THE CONTINENT ACCUSTOMED FOR A DECADE TO JUST TWO CHOICES IN LONGDISTANCE CALLING BT OR ITS SMALLER RIVAL THE MERCURY COMMUNICATIONS LTD UNIT OF CABLE & WIRELESS PLC BRITONS WILL START TO SEE THE WIDE RANGE OF TELEPHONE SUPPLIERS SERVICES AND PRICES THAT IS NOW THE NORM IN THE US BUT THE EFFECTS ALSO WILL BE FELT ON THE CONTINENT ANALYSTS SAY AS THE COST OF A PHONE CALL OUT OF BRITAIN FALLS PRESSURE WILL MOUNT ON TELEPHONE COMPANIES ACROSS THE CHANNEL TO LOWER THEIR OWN CHARGES TO MATCH THAT IS BECAUSE BT FRANCE TELECOM SA DEUTSCHE BUNDESPOST TELEKOM AND THE OTHER EUROPEAN PHONE GIANTS ALL COMPETE TO SERVE AS THE EUROPEAN SWITCHING CENTERS THROUGH WHICH BIGSPENDING MULTINATIONAL COMPANIES ROUTE THEIR TRANSATLANTIC TELEPHONING AS BRITISH CALL CHARGES FALL ANY CONTINENTAL PHONE COMPANY THAT DOESN'T RESPOND WITH ITS OWN CUTS WILL RISK SEEING MULTINATIONALS BYPASS IT TO ROUTE MORE OF THEIR USBOUND CALLS VIA BRITAIN INDEED ON MONDAY GERMANY'S TELEKOM SAID IT PLANS TO RESPOND TO FOREIGN COMPETITION BY REDUCING RATES FOR LONGDISTANCE CALLS IN 1995 OR LATER AT THE SAME TIME AS WITH PAST BRITISH MOVES DEREGULATING TELECOMMUNICATIONS THIS LATEST UK EXPERIMENT WILL STRENGTHEN THE ARGUMENTS OF FREEMARKET ADVOCATES IN THE STILL HEAVILY REGULATED CONTINENTAL PHONE MARKETS I SUSPECT OTHERS WILL FOLLOW THE BRITISH MOVES IN ONE WAY OR ANOTHER SAYS VINCENT GARGARO SPRINT'S VICE PRESIDENT FOR NORTHERN EUROPEAN OPERATIONS ONCE BRITAIN OPENS TO MORE COMPETITION IT WOULD BE VERY FOOLHARDY FOR OTHER ADMINISTRATIONS NOT TO DEREGULATE IN BRUSSELS YESTERDAY THE EUROPEAN COMMUNITY COMMISSION APPROVED PROPOSALS SETTING A TARGET OF INTRODUCING FREER COMPETITION IN THE SUPPLY OF BASIC TELEPHONE SERVICES BY JANUARY 1998 THE MOVE WOULD BREAK THE TIGHT GRIP NATIONAL MONOPOLIES HAVE OVER THE BULK OF THE EC'S 125 BILLIONAYEAR MARKET FOR TELECOMMUNICATION SERVICES THE COMMISSION SEEKS EC MEMBER STATES' APPROVAL BY MIDYEAR SO WORK CAN BEGIN ON DETAILED LEGISLATION FOR SPRINT BRITAIN IS THE FIRST PORT OF CALL FOR ITS GRANDER AMBITIONS ON THE EUROPEAN CONTINENT TO MY MIND SAYS SPRINT'S MR GARGARO IF YOU DON'T ESTABLISH YOURSELF IN THE BRITISH MARKET YOU MAY WELL HAVE LEFT IT TOO LATE TO GET INTO CONTINENTAL EUROPEAN MARKETS WHEN THEY EVENTUALLY OPEN UP SPRINT WAS THE FIRST BIG NONBRITISH COMPANY TO APPLY LAST YEAR FOR A LICENSE TO SET UP ITS OWN TELEPHONE SYSTEM TO CARRY CALLS BOTH WITHIN BRITAIN AND ACROSS THE ATLANTIC TO ITS US NETWORK BUT IT WAS PERHAPS PREMATURE THE MESSAGE WE GOT BACK FROM THE UK GOVERNMENT WAS RECIPROCITY WAS AN ISSUE MR GARGARO SAYS MEANING THE UK WOULDN'T LET SPRINT COMPETE HEADON WITH BT ON INTERNATIONAL CALLS USING ITS OWN PHONE LINES UNTIL BT GOT PERMISSION TO DO THE SAME IN THE US BT EARLIER THIS YEAR APPLIED IN THE US FOR SUCH A LICENSE BUT UNTIL WASHINGTON ACTS ON THE APPLICATION ANALYSTS EXPECT THE SAME OBJECTION TO HOLD UP AT&T'S UK PERMIT IN THE MEANTIME THE UK PLANS TO GO AHEAD AND APPROVE SLIGHTLY LESSAMBITIOUS APPLICATIONS ACCORDING TO THE DEPARTMENT OF TRADE AND INDUSTRY THESE COME IN TWO BASIC FLAVORS SOCALLED PUBLIC TELECOMMUNICATIONS OPERATOR LICENSES TO SET UP AND RUN COMPETING TELEPHONE SERVICES FOR CALLS WITHIN BRITAIN ONLY AND INTERNATIONAL SIMPLE RESALE LICENSES TO CARRY CALLS ABROAD BUT ONLY OVER LINES LEASED FROM BT OR MERCURY RATHER THAN OVER LINES OWNED OUTRIGHT BY THE NEW COMPETITORS THE RESTRICTION MEANS BT OR MERCURY GETS A PORTION OF ITS COMPETITORS' REVENUES AND LIMITS THE SCOPE FOR SAVAGE PRICECUTTING BUT IT IS STILL ATTRACTIVE ENOUGH FOR A LINE OF APPLICANTS TO HAVE FORMED AS FOR SPRINT MR GARGARO SAYS THERE IS QUITE A HIGH DEGREE OF CERTAINTY IT WILL GET CLEARANCE SOON IN BRITAIN FOR A DOMESTIC TELEPHONE LICENSE SPRINT ALREADY HAS PLANS FOR IT AMONG OTHER THINGS IT IS ON THE FINAL LIST OF FOUR BIDDERS FOR A CONTRACT TO MANAGE MOST OF THE BRITISH GOVERNMENT'S OWN INTERNAL PHONE NETWORK THE ISSUE OF A SECOND INTERNATIONAL LICENSE IS MORE COMPLICATED IN COOPERATION WITH BRITISH MEDIA GIANT REUTERS PLC SPRINT ALREADY IS CARRYING CALLS OVER LEASED DEDICATED PHONE LINES FROM REUTERS CLIENTS IN LONDON ACROSS THE OCEAN TO SPRINT'S US PHONE NETWORK BUT AS WITH AT&T FREEDOM TO HANDLE INTERNATIONAL CALLS FROM ANY BRITISH CALLER MAY HAVE TO WAIT UNTIL THE US AND UK RESOLVE THEIR TELECOMMUNICATIONS TRADE DISPUTE TINY NATIONWIDE'S PLANS ARE LESS GRANDIOSE THAN SPRINT'S THE COMPANY PLANS TO USE ITS INTERNATIONAL LICENSE IF GRANTED INITIALLY TO OFFER SPECIALIZED BUSINESS SERVICES AT DISCOUNT PRICES FOR INSTANCE SAYS ANDREW FARROW ONE OF NATIONWIDE'S THREE FOUNDING PARTNERS IF A BUSINESS IN BRITAIN WANTED TO FAX A DOCUMENT TO SEVERAL LOCATIONS ABROAD NATIONWIDE WOULD HANDLE IT AT PRICES 5 TO 25 LOWER THAN BT'S NORMAL CHARGES OR IT MIGHT OFFER TELEPHONE CHARGE CARDS AT A 40 TO 50 DISCOUNT TO BT FEES AND WHAT IS BT'S REACTION TO THE NEW COMPETITORS IT IS APPARENTLY TAKING THE HIGH GROUND SUCCESS ISN'T JUST A QUESTION OF CHARGING LESS A SPOKESMAN SAYS IT'S ALL SORTS OF THINGS OFFERING THE BEST QUALITY OF SERVICE VALUE FOR MONEY THERE ARE VARIOUS REASONS WHY WE CAN'T OFFER THE CHEAPEST RATES BUT ON QUALITY WE CAN COMPETE WITH THE BEST AND THAT'S WHAT WE WANT TO DO 9304290172 930429 INTERNATIONAL JAPAN FIRMS' EXPORT CONTRACTS TOKYO EXPORT CONTRACTS SIGNED BY 19 MAJOR JAPANESE TRADING HOUSES IN MARCH WERE UP 14 FROM THE YEAREARLIER MONTH TO A TOTAL OF 2690 TRILLION YEN 2412 BILLION THE JAPAN FOREIGN TRADE COUNCIL REPORTED IMPORT CONTRACTS WERE DOWN 14 TO 1858 TRILLION YEN IN THE LATEST REPORTING MONTH FOR THE 21ST CONSECUTIVE MONTH OF YEARONYEAR DECLINE THE COUNCIL SAID OVERALL EXPORT CONTRACTS SURPASSED YEAREARLIER LEVELS FOR THE FIRST TIME IN SIX MONTHS OWING IN PART TO CONSIDERABLE GROWTH IN PLANT CONTRACTS IMPORT CONTRACTS AS A WHOLE REMAINED SLUGGISH 9304290170 930429 NOBLE AFFILIATES UNIT ARDMORE OKLA NOBLE AFFILIATES INC SAID ITS SAMEDAN OIL CORP FOUND OIL AND NATURAL GAS IN A DISCOVERY WELL 100 MILES OFFSHORE LOUISIANA IN THE GULF OF MEXICO DRILLED TO A DEPTH OF 11551 FEET THE WELL HAS FOUR POTENTIAL HYDROCARBONBEARING ZONES AT THE WELL'S DEEPEST ZONE IT TESTED AT A DAILY RATE OF 41 MILLION CUBIC FEET OF NATURAL GAS AND 763 BARRELS OF CONDENSATE AN OILLIKE SUBSTANCE THAT CAN BE REFINED ANOTHER ZONE TESTED AT 818 BARRELS OF OIL AND 200000 CUBIC FEET OF GAS A DAY 9304290169 930429 TENNECO COMPLETES STOCK OFFER HOUSTON TENNECO INC SAID IT COMPLETED AN OFFERING OF 235 MILLION COMMON SHARES FOR 109 BILLION THE DIVERSIFIED INDUSTRIAL COMPANY SAID 720 MILLION OF THE PROCEEDS WILL BE USED TO RETIRE CERTAIN DEBT FROM TENNESSEE GAS PIPELINE CO A UNIT OF TENNECO AS FOLLOWS 11 1/8 DEBENTURES DUE 2013 10 1/4 DEBENTURES DUE 2016 9 3/8 DEBENTURES DUE 2017 8 7/8 DEBENTURES DUE 2003 8 5/8 NOTES DUE 1998 AND 8 3/8 DEBENTURES DUE 2002 TENNECO SAID THE REMAINDER OF THE PROCEEDS FROM THE OFFERING COMANAGED BY FIRST BOSTON CORP AND LAZARD FRERES & CO WILL BE USED TO REPAY COMMERCIAL PAPER AND OTHER SHORTTERM BORROWINGS 9304290168 930429 TWO GE BUSINESSES ARE UNPROFITABLE AT HEADQUARTERS BY AMAR KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL FORT WAYNE IND GENERAL ELECTRIC CO CHAIRMAN JOHN F WELCH JR SAID THAT ALTHOUGH THE COMPANY'S MOTOR AND APPLIANCE OPERATIONS ARE DOING WELL THE TWO BUSINESSES' HEADQUARTERS OPERATIONS ARE UNPROFITABLE AT THE COMPANY'S ANNUAL MEETING HERE MR WELCH SAID THE FORT WAYNE MOTOR OPERATION HAS LOSSES OF A COUPLE OF MILLION DOLLARS A YEAR AND THAT GE IS RESTRUCTURING THE OPERATIONS THE FACILITY MAKES DC MOTORS FOR ELECTRIC VEHICLES AND LIGHT MOTORS FOR INDUSTRIAL APPLICATIONS IT EMPLOYS 1620 SALARIED AND HOURLY WORKERS GE MOTORS WHICH MR WELCH SAID WAS MODESTLY PROFITABLE OVERALL EMPLOYS 13000 PEOPLE WORLDWIDE MR WELCH DIDN'T GIVE ANY SPECIFICS ON THE RESTRUCTURING PLAN BUT SAID THE MOVE WILL BE PAINFUL TO SOME HE SAID GE MOTORS WILL TRY TO GROW THE FORT WAYNE OPERATION WE'LL GIVE IT A REAL SHOT TO TURN IT AROUND HE SAID MR WELCH SAID GE'S LOUISVILLE KY FACILITY WHERE THE APPLIANCE HEADQUARTERS ARE LOCATED IS EXPERIENCING A SIGNIFICANT COST DISADVANTAGE HE SAID GE WAS LOSING MONEY AT THE OPERATION WE CAN'T STAY THERE IF WE CAN'T GET OUR TOTAL COSTS DOWN HE SAID ADDING WHETHER WE WIN OR LOSE IN LOUISVILLE REMAINS TO BE SEEN MEANWHILE THE LOUISVILLE PLANT HAS MOBILIZED ITS WORK FORCE TO COME UP WITH INNOVATIVE MANUFACTURING IDEAS TO TURN THE OPERATION AROUND THE FACILITY WHICH MAKES WASHING MACHINES AND REFRIGERATORS EMPLOYS 9300 PEOPLE GE APPLIANCES HAS 25000 EMPLOYEES WORLDWIDE AS FOR OVERALL GE PERFORMANCE MR WELCH REITERATED THAT THE COMPANY IS DOING WELL AND THAT IT'S POSITIONED TO DO EVEN BETTER IN THE FUTURE FOR THE FIRST QUARTER GE POSTED STRONGER GAINS THAN EXPECTED IN MOST OF ITS BUSINESSES EARNINGS ROSE 10 TO 116 BILLION OR 136 A SHARE ON REVENUE OF 1286 BILLION SHAREHOLDERS APPROVED BY AN OVERWHELMING MAJORITY A COMPANY PROPOSAL THAT WOULD PERMIT GE TO LOWER THE MINIMUM NUMBER OF DIRECTORS ON THE BOARD TO 10 FROM THE CURRENT 15 AND TO ELIMINATE THE UPPER LIMIT OF 21 GE CURRENTLY HAS 15 DIRECTORS THE PROPOSAL DREW THE IRE OF ONE SHAREHOLDER ALLUDING TO THE RECENT TRENDS IN CORPORATE BOARDROOMS OF LIMITING CHIEFS EXECUTIVES' POWERS WILLIAM STEWARTWHISTLER A MEMBER OF GE STOCKHOLDERS' ALLIANCE A GROUP THAT OFTEN SUBMITS STOCKHOLDER PROPOSALS AT GE MEETINGS SAID THE MOVE WOULD STIFLE NEW VOICES NEW IDEAS HE SAID THAT WITH MOST OF THE DIRECTORS COMING UP FOR RETIREMENT IN ABOUT FIVE YEARS IT WOULD LEAVE YOU WITH THE SAME OLD VOICE YOU HAVE ALWAYS HAD HE SAID THIS WOULD LEAD TO A CALCIFICATION OF THE BOARD AND A SETTING UP OF ANOTHER GM AND IBM REFERRING TO THE RECENT CORPORATE UPHEAVALS AT GENERAL MOTORS CORP AND INTERNATIONAL BUSINESS MACHINES CORP MR WELCH RESPONDED THAT HE DIDN'T HAVE ANY PLAN TO GET THE BOARD SIZE TO 10 IT PROBABLY WILL REMAIN THE SAME HE SAID CALCIFICATION IS THE LAST THING WE WANT 9304290167 930429 ASPIN ORDERS REMOVAL OF MOST BARRIERS KEEPING WOMEN OUT OF AIR SEA COMBAT BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DEFENSE SECRETARY LES ASPIN ORDERED THE ARMED SERVICES TO REMOVE MOST OF THEIR BARRIERS KEEPING WOMEN OUT OF AIR AND SEA COMBAT AND TO JUSTIFY THE BARS THAT REMAIN AS WE DOWNSIZE THE MILITARY TO MEET THE CONDITIONS OF THE POSTCOLD WAR WORLD WE NEED TO DRAW FROM THE LARGEST AVAILABLE TALENT POOL AND SELECT THE MOST QUALIFIED INDIVIDUAL FOR EACH JOB MR ASPIN SAID UNDER THE ORDER ISSUED BY MR ASPIN WOMEN IMMEDIATELY WILL BE ALLOWED TO FLY ALL KINDS OF COMBAT AIRCRAFT AT THE END OF A NEWS CONFERENCE ON THE ACTION THE AIR FORCE CHIEF OF STAFF GEN MERRILL MCPEAK INTRODUCED LT JEANNIE FLYNN AS HIS SERVICE'S FIRST WOMAN FIGHTER PILOT AND SAID SHE WOULD IMMEDIATELY BEGIN TRAINING TO FLY THE F15 IF CONGRESS AGREES TO REPEAL A LAW THAT PROHIBITS WOMEN FROM BEING ASSIGNED TO SHIPS ENGAGED IN COMBAT WOMEN MAY ALSO SERVE ABOARD MOST NAVY SHIPS ASKED IF WOMEN MIGHT BE POSTED TO SUBMARINES AND SMALL SHIPS SUCH AS MINESWEEPERS MR ASPIN SAID HE WOULD LEAVE THAT DECISION TO THE NAVY ADM FRANK KELSO THE NAVY'S TOP OFFICER SAID I'M NOT EXCLUDING ANYTHING IN ADDITION THE ARMY AND MARINE CORPS WERE ORDERED TO LOOK AT WHETHER WOMEN SHOULD BE ALLOWED TO SERVE IN ARTILLERY AND AIR DEFENSE ASSIGNMENTS BUT WOMEN WILL CONTINUE TO BE EXCLUDED FROM FRONTLINE GROUND COMBAT WHERE THE BASIC CONCERN IS PHYSICAL STRENGTH MR ASPIN SAID THE CHANGES WHICH MR ASPIN HAS BEEN HINTING AT FOR SEVERAL MONTHS FOLLOW BY LESS THAN A WEEK THE RELEASE OF THE PENTAGON'S FINAL REPORT ON THE NAVY'S TAILHOOK SCANDAL IN WHICH NAVAL AVIATORS COMMITTED LEWD AND POSSIBLE CRIMINAL ACTS AT A 1991 CONVENTION MR ASPIN DENIED THAT HE WAS ACTING EITHER IN REACTION TO TAILHOOK OR FROM THE DESIRE TO HAVE THE MOVE COUNTED AS PART OF THE ACCOMPLISHMENTS OF THE FIRST 100 DAYS OF THE CLINTON ADMINISTRATION ASSIGNMENT TO COMBAT AVIATION WILL BE VOLUNTARY FOR WOMEN AS IT IS FOR MEN BUT THE DEFENSE SECRETARY AND HIS SERVICE CHIEFS WERE HAZY ON THE QUESTION OF WHETHER LAND AND SEA COMBAT ASSIGNMENTS WOULD BE VOLUNTARY FOR WOMEN OR COMPULSORY AS THEY ARE FOR MILITARY MEN THIS IS VOLUNTARY MR ASPIN SAID BUT THEN HEDGED BY ADDING IF THERE IS A NEED SOMEBODY COULD BE PUT INTO A POSITION GEN GORDON SULLIVAN THE ARMY CHIEF OF STAFF TOOK A SIMILAR POSITION BUT ADM KELSO SAID THE NAVY EXPECTS TO BECOME GENDERNEUTRAL YOU COME INTO THE NAVY YOU ENLIST AND WE ASSIGN YOU WHETHER COMBAT ASSIGNMENTS FOR WOMEN ARE VOLUNTARY COULD HAVE A MAJOR IMPACT ON THE NAVY AND ARMY SAID CHARLES MOSKOS A NORTHWESTERN UNIVERSITY MILITARY SOCIOLOGIST WHO SERVED LAST YEAR ON THE PRESIDENTIAL COMMISSION ON WOMEN IN THE MILITARY IF YOU DID MAKE IT EQUAL AND THEY FACED COMPULSION WOMEN WOULD GET OUT OF THE MILITARY HE PREDICTED IN A SURVEY OF 1500 ARMY WOMEN HE CONDUCTED LAST YEAR WITH HIS COLLEAGUE LAURA MILLER HE SAID ONLY 14 OF OFFICERS AND 8 OF ENLISTEES SAID THEY WOULD VOLUNTEER FOR THE COMBAT ARMS BRANCHES OF THE ARMY MEREDITH NEIZER ANOTHER MEMBER OF THE COMMISSION REJECTED THAT FINDING SAYING MOST MEN WOULDN'T VOLUNTEER FOR FRONTLINE DUTY EITHER IN TODAY'S ALLVOLUNTEER FORCE SHE SAID COMBAT DUTY SHOULDN'T BE A VOLUNTARY MATTER FOR EITHER SEX MR ASPIN'S ORDER FOLLOWED THE RECOMMENDATION THE PRESIDENTIAL COMMISSION MADE IN NOVEMBER THAT NAVAL COMBAT SLOTS BE OPENED TO WOMEN BUT HE BROKE WITH THE COMMISSION IN OPENING COMBAT AVIATION TO WOMEN ONE CONSERVATIVE MEMBER OF THE COMMISSION SAID SHE WAS SHOCKED BY MR ASPIN'S ORDER YOU'VE GOT DOWNSIZING CHANGES IN ROLES AND MISSIONS PAY CUTS A COMMANDER IN CHIEF THEY'RE LEERY OF GAYS AND THEN THIS SAID KATE O'BEIRNE VICE PRESIDENT FOR GOVERNMENT RELATIONS AT THE HERITAGE FOUNDATION A WASHINGTON THINK TANK SECRETARY ASPIN REJECTED THE ARGUMENT THAT THE MOVE WOULD DAMAGE MORALE SAYING THAT I ANTICIPATE THAT NONE OF THE PROBLEMS WILL BE EXACERBATED BECAUSE OF THIS OF THE 597000 ACTIVE DUTY MEMBERS OF THE ARMY AT THE END OF 1992 73000 WERE WOMEN IN THE NAVY OF 525000 MEMBERS 55000 WERE WOMEN AND OF THE 455000 MEMBERS OF THE AIR FORCE 67000 WERE WOMEN 9304290166 930429 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 1/2 HIGH 1 1/2 LOW 1 NEAR CLOSING BID 2 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 305 30 TO 89 DAYS 306 90 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 311 30 DAYS 311 60 DAYS 312 90 DAYS CERTIFICATES OF DEPOSIT 258 ONE MONTH 263 TWO MONTHS 266 THREE MONTHS 276 SIX MONTHS 293 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 305 ONE MONTH 305 THREE MONTHS 312 SIX MONTHS BANKERS ACCEPTANCES 301 30 DAYS 301 60 DAYS 302 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 1/4 3 1/8 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 9/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 6 GERMANY 850 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY 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 733 60 DAYS 744 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 729 60 DAYS 739 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 5 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 270 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9304290165 930429 WHO'S NEWS LAWTER INTERNATIONAL INC LAWTER INTERNATIONAL INC NORTHBROOK ILL LEONARD P JUDY CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF RUSTOLEUM CORP AND FRED G STEINGRABER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF AT KEARNEY INC WERE NAMED DIRECTORS OF THIS MAKER OF INK CHEMICALS FILLING VACANCIES ON THE BOARD ALSO JOHN O'MAHONEY FORMERLY GENERAL MANAGER EUROPEAN OPERATIONS WAS NAMED TO THE NEW POST OF VICE PRESIDENT EUROPEAN OPERATIONS 9304290164 930429 WESTINGHOUSE SAYS CEO WILL BE NAMED IN SEVERAL WEEKS' MINNEAPOLIS WESTINGHOUSE ELECTRIC CORP CHAIRMAN RICHARD M MORROW TOLD SHAREHOLDERS AT THE ANNUAL MEETING HERE THAT THE BOARD EXPECTS TO NAME A NEW CHIEF EXECUTIVE OFFICER IN THE NEXT SEVERAL WEEKS THE COMMENT CAME AMID CRITICISM FROM SHAREHOLDER ACTIVIST ROBERT AG MONKS WHO TOOK THE FLOOR AND CONTENDED THAT WESTINGHOUSE HAS TAKEN TOO LONG TO SELL ASSETS AND FIND A PERMANENT REPLACEMENT FOR PAUL LEGO THE CHIEF EXECUTIVE OFFICER WHO RESIGNED IN JANUARY UNDER BOARD PRESSURE THIS IS A 22 STOCK HIDING IN A 15 PRICE SAID MR MONKS WHO HELPED PUSH SEARS ROEBUCK & CO INTO RESTRUCTURING AND NOW RUNS A WASHINGTON MONEY MANAGEMENT FIRM CALLED LENS INC IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY WESTINGHOUSE ROSE 375 CENTS TO CLOSE AT 15375 MR MONKS SAID HE REFUSED TO VOTE HIS 132000 WESTINGHOUSE SHARES FOR THE FOUR DIRECTORS WHO WERE UP FOR REELECTION AND CALLED ON ALL NINE TO RESIGN IF THEY DON'T INCREASE THEIR HOLDINGS OF WESTINGHOUSE STOCK AND CUT BACK ON OTHER COMMITMENTS TO PROVIDE THE SINGLEMINDED FOCUS REQUIRED BY THE URGENCY OF THIS SITUATION BUT MR MORROW CONTENDED THAT MR MONKS'S CONCERNS AND THE COMPANY'S ARE ON A PARALLEL PATH AND CITED AS A SIGN OF PROGRESS AGREEMENTS TO SELL ABOUT 23 BILLION IN ASSETS OF WESTINGHOUSE FINANCIAL SERVICES INC THE UNIT RESPONSIBLE FOR MOST OF THE COMPANY'S RECENT LOSSES GARY CLARK THE ACTING CEO SAID THE COMPANY EXPECTS TO SELL ITS DISTRIBUTION & CONTROL AND WESTINGHOUSE ELECTRIC SUPPLY CO UNITS WHICH HAVE BEEN SLATED FOR SALE SINCE NOVEMBER BY MIDSUMMER MR MORROW ALSO SAID THE PITTSBURGH MANUFACTURING BROADCASTING AND FINANCIAL SERVICES COMPANY EXPECTS THIS YEAR TO ADD AT LEAST TWO MORE DIRECTORS TO THE CURRENT NINE 9304290163 930429 WHO'S NEWS SOUTHLAND CORP SOUTHLAND CORP DALLAS TATSUHIRO SEKINE 58 YEARS OLD WAS ELECTED A DIRECTOR OF THIS CONVENIENCESTORE OPERATOR MR SEKINE IS THE MANAGING DIRECTOR OF ITOYOKADO CO OF JAPAN AND HAS BEEN WITH THAT COMPANY SINCE 1973 ITOYOKADO'S SUBSIDIARY IYG HOLDING CO HOLDS A MAJORITY OF SOUTHLAND'S COMMON STOCK MR SEKINE FILLS A VACANCY ON THE 14MEMBER BOARD CREATED BY THE DEPARTURE OF WALTER J SALMON 62 WHO CHOSE NOT TO STAND FOR REELECTION THE COMPANY SAID 9304290162 930429 WHO'S NEWS REGIONAL BANCORP REGIONAL BANCORP MEDFORD MASS ARTHUR H MEEHAN WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS HOLDING COMPANY AND ITS SUBSIDIARY MEDFORD SAVINGS BANK MR MEEHAN 57 YEARS OLD SUCCEEDS THOMAS F O'CONNOR IN HIS NEW POSTS WITH THE HOLDING COMPANY AND AS CHIEF EXECUTIVE OFFICER OF THE THRIFT HE HAD BEEN PRESIDENT OF THE THRIFT SINCE FEBRUARY 1992 MR O'CONNOR 59 CONTINUES AS CHAIRMAN OF BOTH THE HOLDING COMPANY AND THE SAVINGS BANK 9304290161 930429 WHO'S NEWS CARTER HAWLEY HALE STORES INC CARTER HAWLEY HALE STORES INC LOS ANGELES ELAYNE M GAROFOLO 44 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT MARKETING AND SALES PROMOTION A NEW POST MS GAROFOLO FORMERLY SERVED AS SENIOR VICE PRESIDENT COMMUNICATIONS AND IMAGE FOR THE GFT USA CORP UNIT OF ITALIAN APPAREL CONGLOMERATE GRUPPO GFT CARTER HAWLEY ALSO NAMED GERALD MATHEWS 53 TO THE NEW POST OF EXECUTIVE VICE PRESIDENT STORES IN CHARGE OF STRENGTHENING THE COMPANY'S STORE ORGANIZATION AND MAKING IT MORE CUSTOMER FOCUSED MR MATHEWS FORMERLY HELD THE SAME POST WITH SAKS FIFTH AVENUE BOTH EXECUTIVES WILL REPORT TO PRESIDENT AND CHIEF EXECUTIVE OFFICER DAVID DWORKIN 9304290160 930429 BUSINESS BRIEF KAUFMAN & BROAD HOME CORP FIRM EXPECTS TO POST GAINS FOR QUARTER ENDING MAY 31 KAUFMAN & BROAD HOME CORP SAID IT EXPECTS EARNINGS AND REVENUE IN THE FISCAL SECOND QUARTER ENDING MAY 31 TO IMPROVE FROM A YEAR AGO R CHAD DREIER EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER WOULDN'T PROVIDE SPECIFIC ESTIMATES ANALYSTS' ESTIMATES ARE FOR PROFIT TO INCREASE TO BETWEEN 78 MILLION OR 21 CENTS A SHARE AND 119 MILLION OR 32 CENTS A SHARE FROM 4 MILLION OR 11 CENTS A SHARE IN THE YEAREARLIER SECOND QUARTER REVENUE IN THAT PERIOD WAS 2348 MILLION KAUFMAN & BROAD BASED IN LOS ANGELES BUILDS SINGLEFAMILY HOMES IN CALIFORNIA NEVADA ARIZONA TORONTO AND FRANCE AND ALSO HAS COMMERCIAL DEVELOPMENT ACTIVITY IN FRANCE WHILE THE COMPANY'S FRENCHBASED OPERATIONS ARE SUFFERING BECAUSE OF THE LINGERING RECESSION THERE MR DREIER SAID CALIFORNIA SALES OF ENTRYLEVEL HOMES ARE RUNNING VERY STRONG DESPITE THE STATE'S RECESSION 9304290159 930429 COMPUTERS RISC PCS AIM TO CHIP AWAY AT INTEL'S HOLD BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL A NEW GENERATION OF PCS WITH AN ADVANCED MICROCHIP DESIGN IS ABOUT TO APPEAR POSING A CHALLENGE TO CHIP MAKER INTEL CORP'S DOMINANT POSITION IN THE PERSONALCOMPUTER INDUSTRY DIGITAL EQUIPMENT CORP TAIWAN'S ACER GROUP JAPAN'S NEC CORP AND SEVERAL STARTUPS WILL SHOW THE FIRST OF THESE NEW PCS AT THE COMDEX SHOW IN ATLANTA NEXT MONTH LATE THIS YEAR INTERNATIONAL BUSINESS MACHINES CORP AND APPLE COMPUTER INC MAY HAVE THEIR OWN RADICALLY DIFFERENT PCS THESE NEW MODELS AREN'T SIMPLY FASTER VERSIONS OF CONVENTIONAL PCS INSTEAD THEY'RE THE FIRST OF A NEW TYPE OF PC BUILT AROUND A COMPUTERCHIP DESIGN CALLED RISC OR REDUCED INSTRUCTIONSET COMPUTING PREVIOUSLY FOUND ONLY IN FAR MORE POWERFUL WORKSTATIONS THESE ARE SUPERCOMPUTERS IN SHEEP'S CLOTHING SAYS JESSE LIPCON A SENIOR ENGINEER AT DIGITAL DIGITAL'S NEW PC IS BASED ON ALPHA WHICH ANALYSTS SAY IS THE FASTEST RISC CHIP NOW ON THE MARKET APPLE IS BUILDING A RISC PC AROUND THE POWERPC CHIP FROM MOTOROLA INC JOINTLY DEVELOPED WITH IBM OTHERS ARE USING A DESIGN FROM SILICON GRAPHICS INC EACH OFFERS AN ALTERNATIVE TO THE DESIGN OF INTEL'S WELLKNOWN 386 AND 486 CHIPS WHICH POWER SOME 80 OF PCS THE KEY TO RISCBASED PCS IS THAT THEY'RE DIFFERENT BUT NOT TOO DIFFERENT THEY WILL RUN NEXTGENERATION SOFTWARE THAT WOULD CHOKE PCS TODAY YET THEY ALSO WILL RUN MOST CURRENTLY POPULAR SOFTWARE EXCEPT FOR THEIR CHIPS MOST OF THE NEW RISC PCS WILL BE STANDARD IN ALMOST EVERY OTHER WAY ALLOWING USERS TO PLUG IN POPULAR DEVICES SUCH AS ADDIN SOUND CARDS OR PRINTERS OR TO LINK UP WITH EXISTING OFFICE COMPUTER NETWORKS WITHIN A YEAR MOST OF THE MAJOR COMPUTER MAKERS WILL HAVE SCREAMING FAST NONINTEL PCS MANY OF THEM CAPABLE OF RUNNING STANDARD SOFTWARE RIGHT OUT OF THE BOX SAYS RICHARD SHAFFER PUBLISHER OF TECHNOLOGIC COMPUTER LETTER ANALYSTS SAY THESE NEWWAVE PCS COULD TRANSFORM THE INDUSTRY AS NEW OPERATING SOFTWARE BECOMES AVAILABLE THAT'S LARGELY INDEPENDENT OF THE HARDWARE IT RUNS ON CURRENTLY MICROSOFT CORP'S UBIQUITOUS DOS AND WINDOWS OPERATING SOFTWARE ARE TIED TO INTEL CHIPS A LEGACY OF THE PAIRING OF COMPANIES' TECHNOLOGY IN THE FIRST IBM PC IN 1981 THE FIRST OF THE NEW HARDWAREINDEPENDENT OPERATING SYSTEMS IS MICROSOFT'S WINDOWS NT EXPECTED THIS SUMMER IN ADDITION TO RUNNING ON INTEL CHIPS IT WORKS ON RISC CHIPS FROM DIGITAL AND SILICON GRAPHICS AND IS LIKELY TO RUN OTHER RISC CHIPS WITHIN A YEAR OTHERS ARE DEVELOPING NEW OPERATING SOFTWARE AS WELL INCLUDING SUN MICROSYSTEMS INC IBM AND NOVELL INC AND A MAJOR SOFTWARE EFFORT IS ALSO UNDER WAY BY THE TRIUMVERATE OF APPLEIBMMOTOROLA FORMED IN 1991 TO DEVELOP SYSTEMS AROUND IBM'S POWERPC RISC DESIGN IT'S A HISTORIC SHIFT SAYS JAY P STEVENS A DEAN WITTER REYNOLDS INC ANALYST FOR YEARS INTEL VIRTUALLY OWNED THE MARKET BECAUSE IT RAN THE MOST SOFTWARE NOW RISC WILL BECOME A DIRECT COMPETITOR INTEL ISN'T TOO WORRIED THEY'RE NOT GOING TO BE A THREAT ON THE DESKTOP SAYS DAVID HOUSE SENIOR VICE PRESIDENT FOR STRATEGY BUT IN THE MARKET FOR SERVERS WHICH TIE PCS INTO A NETWORK AND FOR HIGHPOWERED PCS USED IN SUCH TASKS AS DRAFTING AND ENGINEERING DESIGN MR HOUSE SAYS THAT IT'LL BE A FIGHT AND IT'S ONE WE'RE LOOKING FORWARD TO UP TO 10 OF MARKET ANDREW ALLISON EDITOR OF THE MONTHLY RISC MANAGEMENT NEWSLETTER FIGURES THE BESTCASE SCENARIO FOR RISC PCS IS PROBABLY 5 TO 10 OF THE MARKET ALTHOUGH THAT'S NOT ENOUGH TO SUPPLANT INTEL IT'S NOT SMALL CHANGE IN A 50 BILLION MARKET HE SAYS NOT EVEN THE MOST OPTIMISTIC CHALLENGER EXPECTS RISC PCS TO OVERTAKE INTELBASED PCS ANYTIME SOON MORE THAN 28 MILLION INTEL PCS WERE SOLD LAST YEAR AGAINST AN ESTIMATED 500000 RISC MACHINES MOST OF WHICH WERE ENGINEERING WORKSTATIONS APPLE'S MACINTOSH LINE CURRENTLY THE ONLY MAINSTREAM ALTERNATIVE TO INTEL WITH ABOUT 14 OF THE MARKET ISN'T LIKELY TO BE DISLODGED EITHER FEW SOFTWARE PROGRAMS ARE AVAILABLE YET THAT TAKE ADVANTAGE OF THE ADDED SPEED OF RISC PCS BUT AS MORE POWERHUNGRY APPLICATIONS SUCH AS SPEECH SYNTHESIS DIGITAL VIDEO OR THREEDIMENSIONAL GRAPHICS BECOME AVAILABLE RISC COULD SHIFT THE COMPETITIVE BALANCE AT THE HIGH END OF THE MARKET IT WILL COMPETE HEADON WITH INTEL'S NEW PENTIUM CHIP THE POWERFUL FOLLOWON TO INTEL'S CURRENT FLAGSHIP 486 CHIP PENTIUM WILL IMMEDIATELY BENEFIT FROM INTEL'S ENORMOUS MARKET INERTIA SAYS MICHAEL SLATER PRINCIPAL OF MICRODESIGN RESOURCES A CALIFORNIA MARKET RESEARCHER BUT AS SOFTWARE TAILORED SPECIFICALLY FOR RISC PCS BECOMES AVAILABLE AND PEOPLE START TO BUY STRICTLY ON PERFORMANCE IT'S THE BEGINNING OF THE END OF THE X86 HE SAYS REFERRING TO THE STANDARD INTEL CHIP DESIGN PERFORMANCE IS THE KEY SELLING POINT FOR RISC DIGITAL'S ALPHA THE FIRST TO BE INDEPENDENTLY TESTED WAS CALLED A DREAM MACHINE FOR WINDOWS NT BY THE INFLUENTIAL WEEKLY PC WEEK AARON GOLDBERG PRESIDENT OF INFOCORP A MARKET RESEARCHER SAYS THAT ALPHA WILL LIKELY RUN RINGS AROUND PENTIUM FOR AT LEAST THE FIRST GENERATION BUT THE MACHINES WON'T SELL IF THEY AREN'T PRICED RIGHT DIGITAL SAYS IT WILL PRICE COMPETITIVELY WITH PENTIUM SYSTEMS AT FIRST AND DELIVER LOWERPRICED MODELS LATER IN THE YEAR ACER WHICH USES THE MIPS CHIP FROM SILICON GRAPHICS SAYS ITS SYSTEMS WILL BE PRICED AS LOW AS 3500 SIGNIFICANTLY LESS THAN WHAT THE FIRST PENTIUM SYSTEMS ARE LIKELY TO COST SOFTWARE REMAINS A BIG CHALLENGE WHILE RISC PCS SHOULD BE ABLE TO RUN EXISTING WINDOWS PROGRAMS AT ABOUT THE SAME SPEED AS AN INTEL 486 THE ONLY WAY TO HARNESS THEIR TOP SPEED IS WITH SOFTWARE SPECIFICALLY COMPILED FOR RISC MAJOR SOFTWARE DEVELOPERS SAY THEY ARE LOOKING INTO THE RISC MARKET BUT MOST HAVEN'T COMMITTED YET MICROSOFT ON THE OTHER HAND SAYS IT PLANS TO INCLUDE RISC VERSIONS OF NT AND APPLICATIONS LIKE SPREADSHEETS ON THE SAME DISKS THAT CARRY THE INTEL VERSIONS AND IT'S ENCOURAGING OTHER DEVELOPERS TO DO THE SAME RISC PCS WON'T GO ANYWHERE IF SOFTWARE DEVELOPERS DON'T BUY IN SAYS DAVID SMITH A MARKET RESEARCHER WITH INTERNATIONAL DATA CORP IN FRAMINGHAM MASS MICROSOFT'S STRONG SUPPORT IS CRITICAL 9304290158 930429 TECHNOLOGY & HEALTH TESTING OF BABIES' VISION CAN DISCLOSE IF CHILDREN WILL BECOME NEARSIGHTED BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES TESTING A BABY'S EYESIGHT NO LATER THAN ONE YEAR OF AGE CAN REVEAL WHETHER THE CHILD WILL BECOME NEARSIGHTED YEARS LATER A RESEARCH TEAM DISCOVERED THE DISCOVERY COULD LAY THE GROUNDWORK FOR TREATMENT THAT MIGHT PREVENT A CHILD FROM DEVELOPING POOR EYESIGHT SAID A RESEARCHER FROM MASSACHUSETTS INSTITUTE OF TECHNOLOGY IN CAMBRIDGE MASS KNOWING CHILDREN'S LIKELIHOOD OF BECOMING NEARSIGHTED FOR EXAMPLE COULD HELP SETTLE A LONGRUNNING DEBATE OVER WHETHER INTENSIVE READING BY FIVE AND SIXYEAROLDS CONTRIBUTES TO NEARSIGHTEDNESS THE FINDING THAT AN INFANT'S FUTURE VISUAL ACUITY CAN BE PREDICTED AT ONE YEAR OF AGE STEMS FROM A PROJECT STARTED 18 YEARS AGO IN WHICH MIT RESEARCHERS HAVE BEEN PERIODICALLY TESTING THE EYESIGHT OF MORE THAN 400 CHILDREN FROM THEIR FIRST FEW MONTHS OF LIFE JANE GWIAZDA A RESEARCH SCIENTIST AT MIT'S DEPARTMENT OF BRAIN AND COGNITIVE SCIENCES DESCRIBED THE PROJECT'S LATEST FINDINGS AT A SEMINAR FOR REPORTERS HELD BY RESEARCH TO PREVENT BLINDNESS A PRIVATE FUNDRAISING AGENCY THAT SPONSORS RESEARCH ON EYE DISEASES DR GWIAZDA SAID IT WAS FOUND THAT BABIES WHO ARE NEARSIGHTED AT ONE YEAR OF AGE WILL TEND TO DEVELOP NORMAL VISUAL ACUITY IN THE NEXT THREE TO FOUR YEARS THEY MIGHT EVEN DEVELOP A SMALL DEGREE OF FARSIGHTEDNESS IT ISN'T UNTIL BETWEEN SIX YEARS AND 12 YEARS OF AGE THAT THE CHILDREN'S EYES AGAIN DEVELOP NEARSIGHTEDNESS THUS DR GWIAZDA SAID AN EYE TEST AT AGE ONE IS THE BEST PREDICTOR OF WHETHER A CHILD WILL BE NEARSIGHTED AN EYE EXAMINATION PLUS KNOWLEDGE OF WHETHER THE PARENTS ARE NEARSIGHTED CAN PREDICT WHETHER THE CHILD WILL BE NEARSIGHTED DR GWIAZDA SAID AMONG THE FAMILIES STUDIED WHERE BOTH PARENTS WERE NEARSIGHTED 42 OF THE CHILDREN WERE ALSO IF ONLY ONE PARENT WAS NEARSIGHTED 22 OF THE CHILDREN WERE AS WELL WHILE IN FAMILIES WHERE NEITHER PARENT WAS NEARSIGHTED ONLY 8 OF THE CHILDREN WERE AT PRESENT DR GWIAZDA SAID IT ISN'T KNOWN WHETHER DEVELOPMENT OF MYOPIA OR NEARSIGHTEDNESS CAN BE PREVENTED OR DIMINISHED IF AN EYE EXAM DISCOVERS THAT AN INFANT IS LIKELY TO BE NEARSIGHTED BUT SHE SAID THERE ARE A VARIETY OF REASONS NOT JUST MYOPIA FOR HAVING AN EXAMINATION AT SIX MONTHS TO ONE YEAR OF AGE A SMALL PERCENTAGE OF INFANTS WILL BE FOUND TO BE UNUSUALLY FARSIGHTED AND THUS AT RISK OF DEVELOPING SOCALLED LAZY EYE A CONDITION THAT CAN BE PREVENTED WITH EYEGLASSES THE EXAM COULD ALSO SPOT CHILDREN WHO NEED TREATMENT TO ENHANCE THEIR BINOCULAR VISION NOW THAT RESEARCHERS HAVE A WAY TO PREDICT AN INFANT'S LIKELIHOOD OF BECOMING NEARSIGHTED THEY WILL BE ABLE TO TEST A VARIETY OF METHODS CLAIMED TO PREVENT NEARSIGHTEDNESS THESE METHODS INCLUDE READING GLASSES OR BIFOCALS IN YOUNG CHILDREN AS THEY BEGIN TO READ RIGID CONTACT LENSES TO SHAPE THE CORNEA VISUAL EXERCISES BIOFEEDBACK AND EYEDROPS IN THE PAST THESE TREATMENTS HAVE BEEN TESTED ONLY IN CHILDREN WHO ARE ALREADY NEARSIGHTED THE RESULTS HAVE BEEN INCONCLUSIVE DR GWIAZDA SAID NOW THAT THE DEGREE OF A CHILD'S NEARSIGHTEDNESS CAN BE PREDICTED IT WILL BE POSSIBLE TO SEE IF ANY OF THESE METHODS WILL CHANGE THE OUTCOME 9304290157 930429 BUSINESS BRIEF OCCIDENTAL PETROLEUM CORP GAS CHEMICAL FIRM TO BUY STAKE IN 3 CONGO OIL FIELDS OCCIDENTAL PETROLEUM CORP SAID IT SIGNED AN AGREEMENT WITH THE REPUBLIC OF THE CONGO TO ACQUIRE INTERESTS IN THREE OFFSHORE OIL BLOCKS AND HAS ALSO AGREED TO PROVIDE FINANCIAL AND TECHNICAL SERVICES TO INCREASE PRODUCTION THE LOS ANGELES GAS AND CHEMICAL CONCERN WILL PAY 150 MILLION TO THE CONGO GOVERNMENT IT EXPECTS TO RECEIVE MORE THAN 75 MILLION BARRELS OF OIL UNDER THE AGREEMENT AND SAID THE FIELDS ARE ESTIMATED TO CONTAIN MORE THAN 500 MILLION BARRELS OF RECOVERABLE OIL RAY IRANI CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE SAID OCCIDENTAL EXPECTS TO RECEIVE NET OIL OF ABOUT 20000 BARRELS A DAY BY 1997 OCCIDENTAL'S STOCK CLOSED AT 21875 UP 375 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING 9304290156 930429 INTERNATIONAL BRIEF CELSIUS INDUSTRIER AB SWEDEN UNVEILS PROPOSAL TO PRIVATIZE ARMS MAKER AT A TIME WHEN DEFENSE CONTRACTORS AROUND THE WORLD FACE UNUSUALLY BLEAK PROSPECTS THE SWEDISH GOVERNMENT IS STEAMING AHEAD WITH PLANS TO PRIVATIZE THE NATION'S BIGGEST ARMS MAKER CELSIUS INDUSTRIER AB ORIGINALLY A COLLECTION OF FAILING STATE SHIPYARDS CELSIUS NOW PRODUCES SOPHISTICATED DEFENSE MATERIEL RANGING FROM MISSILE RADAR SYSTEMS AND SUBMARINES TO BOFORS HOWITZERS UNDER A PRIVATIZATION PROPOSAL UNVEILED WEDNESDAY THE STATE IS TO REDUCE ITS DIRECT STAKE IN CELSIUS TO 25 FROM 89 CURRENTLY NOBEL INDUSTRIER AB ANOTHER STATECONTROLLED COMPANY OWNS THE REMAINING 11 OF CELSIUS THE PRICE FOR CELSIUS STOCK WON'T BE KNOWN UNTIL THE OFFERING PERIOD BEGINS NEXT MONTH BUT IF THE COMPANY MANAGES TO FETCH ITS PRESENT NET ASSET VALUE THE PRIVATIZATION WOULD ADD 225 BILLION SWEDISH KRONOR 310 MILLION TO STATE COFFERS 9304290155 930429 TECHNOLOGY & HEALTH U S WEST ORACLE PLAN TO PROVIDE ELECTRONIC DATA BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL A BABY BELL COMPANY AND A SUPPLIER OF DATABASE SOFTWARE ARE FORMING A JOINT VENTURE AIMED AT PROVIDING A VARIETY OF ELECTRONIC SERVICES TO BUSINESS SCHOOLS AND HOMES INCLUDING MAIL AND VOICE MESSAGES ORACLE CORP A REDWOOD SHORES CALIF SOFTWARE CONCERN AND U S WEST A DENVERBASED TELEPHONE HOLDING COMPANY WILL DISCLOSE DETAILS OF THEIR PARTNERSHIP IN SAN FRANCISCO ON MAY 11 ORACLE AND U S WEST DECLINED TO COMMENT NOW ON THE SPECIFICS OF THEIR PLAN BUT PEOPLE FAMILIAR WITH THE COMPANIES SAY ORACLE WILL SUPPLY THE TECHNOLOGY THAT MANAGES LARGE POOLS OF MESSAGES AND DATA AND CAN LINK TOGETHER AT LEAST ONE MILLION ELECTRONIC CUSTOMERS U S WEST WILL PROVIDE MARKETING MUSCLE A LARGE CUSTOMER BASE AND COMMUNICATIONS KNOWHOW THE PEOPLE SAID THE MARKET FOR SUCH SERVICES IS POTENTIALLY BIG BUT SO ARE THE OBSTACLES TO SUCCESS IN THE PAST MANY EFFORTS TO CREATE BROAD ELECTRONIC NETWORKS HAVE COME UP SHORT THE PROBLEM HOWEVER IS NOT TECHNICAL BUT MARKETING BARRIERS PACKAGING ELECTRONIC SERVICES IN A WAY THAT CUSTOMERS CAN EASILY UNDERSTAND AND PAY FOR ORACLE HAS THE TECHNOLOGY TO SOLVE A PRETTY BIG MAIL PROBLEM THAT ISN'T THE QUESTION SAID PAUL CUBBAGE A SOFTWARE ANALYST AT DATAQUEST INC HOW U S WEST AND ORACLE WILL ATTACK THE BUSINESS PROBLEM OF ELECTRONIC SERVICES IS NOT CLEAR BUT THEY ARE NOT ALONE IN TRYING THEIR PARTNERSHIP IS THE LATEST CROSSINDUSTRY ALLIANCE AIMED AT EXPLOITING THE OPPORTUNITIES CREATED BY THE MARRIAGE OF ELECTRONICS INFORMATION AND COMMUNICATIONS IN THIS BREW TELEPHONE COMPANIES ARE ACTIVELY SEEKING WAYS TO PIGGYBACK ELECTRONIC INFORMATION AND ENTERTAINMENT ONTO THEIR EXISTING NETWORKS SOFTWARE COMPANIES MEANWHILE ARE INTERESTED IN MOVING THEIR CODING TALENTS TO A NEW ARENA AND MESHING CONTENT WITH THEIR PROGRAMMING TOOLS A HOST OF OTHER COMPANIES FROM THE CABLE PUBLISHING AND FILM INDUSTRIES ALSO ARE SCRAMBLING TO FIND WAYS TO TAKE ADVANTAGE OF THIS TREND BUT IN AN INTERVIEW LAST MONTH LAWRENCE ELLISON ORACLE'S CHIEF EXECUTIVE SAID TECHNICAL ADVANCES NOW MAKE IT POSSIBLE TO CREATE RELATIVELY INEXPENSIVE PUBLIC DATABASES WITH TELEPHONE COMPANIES ACTING AS THE BACKBONE FOR WHAT HE TERMED A HUGE EMERGING MARKET THE NEW GENERATION OF PUBLIC DATABASES MR ELLISON SAID WILL BE AN IMPORTANT ADDITION TO TELEPHONE SERVICE BY ENABLING CUSTOMERS TO STORE AND RECALL VOICE MESSAGES AND RECEIVE WHAT HE CALLED HOME MAIL ELECTRONICALLY HE SAID THAT BY MATCHING THE LATEST SUPERCOMPUTERS WITH ORACLE'S SOFTWARE NEW DATA SERVICES COULD DELIVER INFORMATION AT A TENTH OF THE COST INCURRED BY CURRENT SUPPLIERS 9304290154 930429 BUSINESS BRIEF GTE CORP COMPANY CONDUCTING TRIAL OF WIRELESS SERVICES IN SOUTH GTE CORP SAID IT IS CONDUCTING A TRIAL OF WIDEAREA WIRELESS CENTREX AND PRIVATE BRANCH EXCHANGE OR PBX SERVICE TO FIVE BUSINESSES IN TWO SOUTHERN MARKETS AS PART OF ITS PERSONAL COMMUNICATIONS SERVICES RESEARCH EFFORT THE CENTREX AND PBX SERVICE IS BEING OFFERED IN NASHVILLE TENN AND DURHAM NC TWO CURRENT MARKETS OF GTE WHICH IS BASED IN STAMFORD CONN THE TRIAL INVOLVING 350 HANDSETS MARKS THE FIRST TIME TARIFFED CENTREX SERVICES HAVE BEEN LINKED TO WIDEAREA WIRELESS SERVICES GTE SAID THIS ALLOWS THE USER TO TAKE ADVANTAGE OF ALL PBX AND CENTREX SERVICES SUCH AS FOURDIGIT OR FIVEDIGIT INTRACOMPANY DIALING FROM ANYWHERE IN AN EXTENDED SERVICE AREA OF 3500 SQUARE MILES GTE SAID THE TRIAL IS EXPECTED TO BE COMPLETED IN DECEMBER AND IS PART OF A CONTINUING RESEARCH PROGRAM JOINTLY CONDUCTED BY GTE NORTHERN TELECOM INC A UNIT OF CANADA'S NORTHERN TELECOM LTD AND OKI TELECOM A UNIT OF JAPAN'S OKI ELECTRIC INDUSTRY LTD BUSINESSES PARTICIPATING IN THE TRIAL INCLUDE THE OPRYLAND CONVENTION AND ENTERTAINMENT COMPLEX AND NORTHERN TELECOM'S REPAIR AND DISTRIBUTION CENTER IN NASHVILLE 9304290153 930429 BUSINESS BRIEF JACOBS ENGINEERING GROUP INC FIRM SIGNS LETTER TO BUY SIGEL EXPAND ITS BUSINESS JACOBS ENGINEERING GROUP INC SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE SIGEL GROUP A CLOSELY HELD ENGINEERING AND DESIGN FIRM SPECIALIZING IN THE PHARMACEUTICAL AND BIOTECHNOLOGY INDUSTRIES TERMS WEREN'T DISCLOSED SIGEL IN NARBERTH PA HAS ABOUT 250 EMPLOYEES AND INDUSTRY OBSERVERS ESTIMATED THE VALUE OF THE ACQUISITION AT BETWEEN 10 MILLION AND 25 MILLION JACOBS AN ENGINEERING DESIGN ENVIRONMENTAL AND HAZARDOUS WASTE MANAGEMENT AND CONSTRUCTION FIRM IN PASADENA CALIF HAS BEEN EXPANDING INTO THE PHARMACEUTICAL AND BIOTECHNOLOGY AREAS A SIGNIFICANT PART OF ITS BUSINESS STILL IS ASSOCIATED WITH THE PETROCHEMICAL INDUSTRY BUT WITH UNCERTAIN SIGNALS COMING FROM WASHINGTON ABOUT THAT INDUSTRY THE SIGEL ACQUISITION IS AN EFFORT TO DIVERSIFY ACCORDING TO JOHN N SIMON AN ANALYST AT SEIDLER AMDEC SECURITIES INC 9304290152 930429 FORMER S&L OFFICIALS TO PAY 732 MILLION TO SETTLE US CHARGES WASHINGTON FEDERAL BANK REGULATORS SAID THAT 14 FORMER BANK AND THRIFT OFFICIALS HAVE AGREED TO PAY A TOTAL OF 732 MILLION TO SETTLE FRAUD CHARGES INVOLVING A GROUP OF CONNECTICUT BANKS RICHARD BARBIERI SR WHO WAS PRESIDENT OF SECURITY SAVINGS & LOAN ASSOCIATION A NOWDEFUNCT THRIFT IN WATERBURY CONN AGREED TO PAY RESTITUTION OF 31 MILLION THE OFFICE OF THE COMPTROLLER OF THE CURRENCY AND THE OFFICE OF THRIFT SUPERVISION CHARGED THAT MR BARBIERI WHO WAS SENTENCED TO FIVE YEARS IN JAIL LAST YEAR AFTER PLEADING GUILTY TO FEDERAL BRANK FRAUD AND BRIBERY CHARGES USED A NETWORK OF CONNECTICUT BANKS TO MAKE ILLEGAL LOANS TO HIMSELF AND HIS ASSOCIATES REGULATORS SAID THESE LOANS CONTRIBUTED TO THE FAILURE OF SIX INSTITUTIONS ENFIELD NATIONAL BANK IN ENFIELD HARBOR NATIONAL BANK IN BRANFORD SUMMIT NATIONAL BANK IN TORRINGTON COLONY SAVINGS BANK IN WALLINGFORD COMMUNITY SAVINGS BANK IN BRISTOL AND SECURITY SAVINGS A SEVENTH BANK LIBERTY NATIONAL BANK IN DANBURY CAME TO THE BRINK OF INSOLVENCY THE COMPTROLLER SAID JOHN CORPACI A FORMER EXECUTIVE VICE PRESIDENT AT SECURITY SAVINGS AGREED TO PAY THE TWO AGENCIES A TOTAL OF 17 MILLION MR CORPACI WAS SENTENCED TO 3 1/2 YEARS IN PRISON FOR BRIBING WITH MR BARBIERI THE FORMER MAYOR OF WATERBURY JOSEPH SANTOPIETRO WHO WAS CONVICTED OF APPROVING REAL ESTATE PROJECTS IN RETURN FOR BRIBES MESSRS BARBIERI AND CORPACI AND 11 OTHERS CONSENTED TO THE PAYMENTS AND THE SETTLEMENTS WITHOUT ADMITTING OR DENYING WRONGDOING TO THE BANK REGULATORS IN ADDITION THE COMPTROLLER SAID THAT MICHAEL CAPORALE AGREED TO PAY 400000 TO SETTLE BANK FRAUD CHARGES MR CAPORALE AN ATTORNEY WAS A DIRECTOR OF HARBOR NATIONAL BANK THE AGENCY CHARGED HIM WITH UNSAFE BANKING PRACTICES AND VIOLATION OF PROFESSIONAL STANDARDS BY APPROVING A LOAN TO A LARGE AND ALREADY DELINQUENT BORROWER WHO WAS ALSO ONE OF HIS CLIENTS 9304290151 930429 INTERNATIONAL SUMITOMO BANK NAMES NEW PRESIDENT IN BID TO MOVE BEYOND A TROUBLED PAST BY CLAY CHANDLER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO SUMITOMO BANK LTD HOPING TO CLOSE A SORDID CHAPTER IN ITS CORPORATE HISTORY NAMED AS ITS NEW PRESIDENT A LOWKEY INTERNATIONALIST WHO HAD BEEN A DARKHORSE CANDIDATE FOR THE JOB AT THE SAME TIME SUMITOMO THE WORLD'S SECONDLARGEST BANK IN TERMS OF ASSETS RAISED ITS ESTIMATE FOR ITS CONSOLIDATED PRETAX PROFIT FOR THE FISCAL YEAR ENDED MARCH 31 TO 78 BILLION YEN 699 MILLION UP FROM ITS JANUARY ESTIMATE OF 35 BILLION YEN THE BANK SAID THE REVISION REFLECTS SUBSTANTIAL IMPROVEMENT IN ITS EQUITY PORTFOLIO IN RECENT MONTHS SUMITOMO SAID TOSHIO MORIKAWA EXECUTIVE VICE PRESIDENT FOR INTERNATIONAL OPERATIONS WILL SUCCEED SOTOO TATSUMI AS THE BANK'S PRESIDENT MR TATSUMI WILL ASSUME A LESSPOWERFUL POSITION AS CHAIRMAN THAT POST HAD BEEN VACANT SINCE ICHIRO ISODA RESIGNED IN 1990 TO TAKE RESPONSIBILITY FOR AN INSIDERTRADING SCANDAL INVOLVING A SUMITOMO BANK MANAGER THE APPOINTMENT OF MR MORIKAWA TOOK MANY IN THE BANKING COMMUNITY BY SURPRISE THE OSAKABASED BANK REGARDED AS ONE OF JAPAN'S MOST AGGRESSIVE FINANCIAL INSTITUTIONS TRADITIONALLY HAS BEEN LED BY EXECUTIVES SHARPLY FOCUSED ON THE BANK'S HOME MARKET MR MORIKAWA BY CONTRAST IS A SOFTSPOKEN 60YEAROLD WHO HAS SERVED AS MANAGER OF SUMITOMO'S OFFICES IN SAN FRANCISCO AND HONG KONG BUT WHO HASN'T PLAYED A DOMINANT DOMESTIC ROLE HE'S NOT A STRONG PERSONALITY SAID ONE LONGTIME ACQUAINTANCE HE ISN'T THE TYPICAL SUMITOMO BANK MAN SUMITOMO OFFICIALS SAID MR MORIKAWA'S SELECTION REFLECTED A DESIRE TO PUT AN END TO AN ERA TAINTED BY THE BANK'S INVOLVEMENT WITH ITOMAN & CO A RENEGADE OSAKA TRADING COMPANY ABSORBED BY ANOTHER SUMITOMO GROUP COMPANY THIS YEAR UNDER THE DIRECTION OF YOSHIHIKO KAWAMURA A FORMER SUMITOMO BANK EXECUTIVE AND PROTEGE OF MR ISODA ITOMAN HATCHED A SERIES OF SHADY PROPERTY AND ART DEALS PILED UP 8 BILLION IN DEBT AND MARCHED TO THE BRINK OF FINANCIAL COLLAPSE SUMITOMO ITOMAN'S MAIN BANK AND BIGGEST LENDER WAS OBLIGED TO RESTRUCTURE THE CONCERN IN JANUARY SUMITOMO TOOK THE UNPRECEDENTED STEP OF WRITING OFF 100 BILLION YEN 895 MILLION IN BAD LOANS MANY OF THEM RELATED TO THE ITOMAN AFFAIR SUMITOMO OFFICIALS HAVE PUT THE ITOMAN PROBLEM BEHIND THEM SAYS WALTER ALTHERR A FINANCIAL ANALYST AT WI CARR & SONS OVERSEAS LTD MOST ANALYSTS EXPECT SUMITOMO TO LOSE ITS POSITION AS JAPAN'S MOST PROFITABLE LENDER TO OSAKA RIVAL SANWA BANK LTD WHEN BANKS ANNOUNCE THEIR FINANCIAL RESULTS NEXT MONTH BUT SUMITOMO IS LIKELY TO REMAIN ONE OF JAPAN'S STRONGEST BANKS AND SHOULD BE ABLE TO EARN ITS WAY OUT OF ANY FURTHER BADDEBT PROBLEMS IT MAY BE FACING MR ALTHERR SAYS THE CHALLENGE FACING MR MORIKAWA MR ALTHERR SAID WILL BE TO MELD SUMITOMO'S AGGRESSIVE PROFITSEEKING MANAGEMENT STYLE WITH MOREEFFECTIVE CREDIT CONTROL POLICIES SUMITOMO ALSO SAID IT EXPECTS TO REPORT VALUATION LOSSES ON ITS STOCK AND BOND PORTFOLIO OF 368 BILLION YEN FOR THE YEAR A FEW MONTHS AGO IT HAD EXPECTED A MUCH LARGER LOSS DESPITE THE IMPROVEMENT IN PRETAX PROFIT THE BANK RAISED ITS ESTIMATE FOR NET INCOME ONLY SLIGHTLY TO 14 BILLION YEN UP FROM ITS JANUARY ESTIMATE OF 12 BILLION YEN ANALYSTS SAID THE MODEST INCREASE INDICATES THAT SUMITOMO WILL WRITE OFF A SUBSTANTIAL AMOUNT OF BAD LOANS 9304290150 930429 BUSINESS BRIEF CINEPLEX ODEON CORP FIRM CONVERTS DEBT OWED TO BIG HOLDERS INTO EQUITY CINEPLEX ODEON CORP SAID IT COMPLETED THE PREVIOUSLY REPORTED CONVERSION OF DEBT OWED TO ITS TWO MAJOR SHAREHOLDERS INTO EQUITY AND SAID A TOTAL OF 7763540 SHARES HAVE BEEN ISSUED TO THE SHAREHOLDERS CINEPLEX ODEON SAID IT CONVERTED 63 MILLION CANADIAN DOLLARS US5 MILLION OF DEBT OWED TO MCA INC OF LOS ANGELES A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO OF JAPAN INTO 3881770 SUBORDINATE RESTRICTED VOTING SHARES MCA IS THE SOLE OWNER OF THE SUBORDINATE RESTRICTED VOTING SHARES WHICH GIVE THE COMPANY A ONETHIRD VOTING INTEREST IN CINEPLEX CINEPLEX SAID MONTREAL FINANCIER CHARLES BRONFMAN AND HIS ASSOCIATES CONVERTED C63 MILLION IN DEBT OWED THEM INTO 3881770 COMMON SHARES FOLLOWING THE DEAL MR BRONFMAN AND HIS ASSOCIATES OWN 28107927 COMMON SHARES OF CINEPLEX OR 45 OF THE COMMON OUTSTANDING CINEPLEX ODEON IS A TORONTO MOVIE THEATER CHAIN 9304290149 930429 REVIEW & OUTLOOK EDITORIAL NEON LEON WHITE HOUSE BUDGET DIRECTOR LEON PANETTA THIS WEEK TOOK TO BRANDISHING THE EQUIVALENT OF A BIG BRIGHT NEON SIGN AROUND WASHINGTON THAT SAID STOP FOCUS AND CHANGE COURSE MR PRESIDENT IT WILL BE A LONG CHAOTIC AND MAYBE DANGEROUS 1300 DAYS UNTIL 1996 IF BILL CLINTON DOESN'T TAKE HIS USEFUL ADVICE NATURALLY THERE WAS THE USUAL WHITE HOUSE SPIN CONTROL AFTER MR PANETTA'S EXTRAORDINARY ONTHERECORD INTERVIEW MONDAY WARNING OF THE TROUBLES FACING MR CLINTON'S AGENDA ON CAPITOL HILL BUT THE FACT IS THAT A WASHINGTON PLAYER AS EXPERIENCED AS MR PANETTA DOESN'T SPEAK SO CANDIDLY SIMPLY BECAUSE HE FORGOT HE WASN'T IN CONGRESS ANYMORE TO CITE ONE WHITE HOUSE EXPLANATION NOR WERE HIS REMARKS MISINTERPRETED SINCE SEVERAL REPORTERS CAME AWAY WITH THE SAME MESSAGE WHAT EVERYONE WHO'S BEEN AROUND WASHINGTON LONGER THAN GEORGE STEPHANOPOULOS KNOWS IS THAT MR PANETTA WAS DELIVERING A LOUD PUBLIC WAKEUP CALL FROM BOSNIA TO HEALTH CARE TO TRADE AND ECONOMICS THIS YOUNG PRESIDENCY HAS LOST CONTROL OF ITS AGENDA AND MAY BE LOSING ITS BALANCE ALTOGETHER THE WAY TO GET BACK IN CONTROL IS TO UNDERSTAND THAT THE PROBLEM ISN'T WITH HIS COMMUNICATIONS STRATEGY THE MEDIA OR THE SENATE REPUBLICANS MR CLINTON'S PROBLEM IS THAT THE LIBERAL AGENDA HE HAS EMBARKED UPON DOESN'T WORK AND CAN'T GOVERN THE COUNTRY MR PANETTA RECALL IS THE MAN WHO ONCE SAID MR CLINTON WOULD PROPOSE 2 IN SPENDING CUTS FOR EVERY 1 IN NEW TAXES HE LOST THAT INTERNAL DEBATE WHEN MR CLINTON DECIDED ON A BUDGET PLAN DESIGNED MAINLY TO PLEASE THE CONGRESSIONAL DEMOCRATIC LEFT ON MONDAY MR PANETTA ALL BUT ADMITTED THIS WAS A BLUNDER IN DEALING WITH THE CONGRESS IF YOU START TRYING TO GAUGE YOUR ACCOMPLISHMENTS ON THE LEAST COMMON DENOMINATOR OF WHAT YOU CAN GET THROUGH THE CONGRESS THEN I THINK YOU'RE IN DEEP TROUBLE HE SAID MR PANETTA ADDED THAT THE PRESIDENT SHOULD NOW TRY TO GET REPUBLICAN SUPPORT AT LEAST FROM THE MODERATES AND DELAY DROPPING HIS HEALTHCARE BOMB UNTIL THE BUDGET IS FURTHER ALONG IF YOU WANT TO USE RONALD REAGAN AS AN EXAMPLE YOU'VE GOT TO KEEP YOUR EYE ON A SIMPLE MESSAGE TO THE AMERICAN PEOPLE AS TO WHAT YOU'RE ABOUT HE ADDED IT'S HARD TO IMAGINE RONALD REAGAN OFFERING A RUBE GOLDBERG PLAN TO REDESIGN 14 OF THE GDP AT THE SAME TIME HE WAS PUSHING A RADICAL TAX INCREASE MR REAGAN WOULD ALSO NOT ASSUME THAT A FORMER BUSINESS CONSULTANT NAMED IRA MAGAZINER AND 500 HEALTHCARE BUREAUCRATS WERE SMARTER THAN MILLIONS OF INDIVIDUAL AMERICANS THE PANETTA IMPLICATION IS THAT MR CLINTON HAS TO CHOOSE BETWEEN THE THINGS THAT HE MAY HOPE TO DO AND THOSE THAT ONLY A PRESIDENT CAN DO A 16 BILLION SPENDING BILL AND GAYS IN THE MILITARY MIGHT BE THINGS HE PROMISED THE SPECIAL INTERESTS BUT THE NORTH AMERICAN FREE TRADE AGREEMENT CAN'T AFFORD TO FAIL YET MR PANETTA CALLED NAFTA DEAD IN THE WATER NO DOUBT IN PART TO ALERT MR CLINTON TO THE PRESIDENT'S OWN DIFFIDENT SUPPORT IN THE FACE OF HOSTILE DEMOCRATS MR CLINTON COULD START BY REPEATING TREASURY SECRETARY LLOYD BENTSEN'S ARGUMENT FOR NAFTA BEFORE THE INDEPENDENT BANKERS ON MONDAY HE DIDN'T HEM AND HAW OR TALK ABOUT SIDE AGREEMENTS HE SPOKE INSTEAD ABOUT THE US NATIONAL INTEREST YOU HAVE A PRESIDENT IN SALINAS A REFORMMINDED PRESIDENT WHO HAS DONE SOME INCREDIBLE THINGS IN THE WAY OF PRIVATIZATION MR BENTSEN SAID PRESIDENT SALINAS IS ALSO CUTTING TARIFFS ON US EXPORTS TO 10 FROM 50 WHAT HAPPENS IF WE DON'T PASS NAFTA MR BENTSEN ASKED YOU CAN SEE THOSE TARIFFS GO RIGHT BACK UP AGAIN YOU CAN SEE THE KIND OF POLICY THAT MEXICO HAS OFTEN HAD IN THE PAST WHEN THEY LOOK AT THE COLOSSUS OF THE NORTH AND IF A FELLOW WANTS TO WIN OFFICE IN MEXICO HE RUNS AGAINST THE UNITED STATES THIS IS THE VOICE OF ACCUMULATED WISDOM IN MARKED CONTRAST TO THE TYSONS KANTORS AND OTHER BABY BOOM FRIENDS OF BILL WHO SEEM TO THINK THEY CAN REINVENT THE TRADING WORLD IF HE CAN TEAR THE VICE PRESIDENT AWAY FROM HIS ENVIRONMENTAL INTEREST GROUPS WHY NOT ASK AL GORE TO ENLIST IN THE NAFTA FIGHT THE IMMEDIATE BELTWAY BUZZ ABOUT MR PANETTA'S REMARKS CONCERNED LOYALTY AND DISARRAY BUT THESE ARE EFFECTS NOT THE CAUSE THE ROOT PROBLEM IS THE DIRECTION OF THE CLINTON PRESIDENCY THE MAN WHO CAMPAIGNED AS A NEW DEMOCRAT HAS PROVED IN HIS FIRST 100 DAYS TO BE A PRESIDENT OF THE CONGRESSIONAL AGENDA AND SPECIAL INTERESTS HE TRIED TO HIDE AT LAST SUMMER'S NEW YORK CONVENTION THE RESULTING DISSONANCE LEADS ONLY TO CONFUSION AND CAN'T SUSTAIN A GOVERNING MAJORITY MR CLINTON SHOULDN'T TAKE MR PANETTA TO THE WOODSHED HE SHOULD TAKE HIM TO THE OVAL OFFICE FOR A LONG TALK 9304290148 930429 WHAT'S NEWS WORLDWIDE NATO MILITARY CHIEFS DEMANDED A CLEARCUT WESTERN STRATEGY ON BOSNIA MILITARY OFFICIALS OF THE 16NATION ALLIANCE URGED THE WEST'S POLITICAL LEADERS TO REFRAIN FROM CALLING FOR AIR STRIKES AGAINST SERBS UNLESS A LONGTERM STRATEGY TO END THE WAR IS DEVISED THE APPEAL REFLECTED CONCERN THAT BOMBING WOULD BRING SERB RETALIATION AGAINST UN PEACEKEEPERS WHO ALREADY HAVE BEEN THREATENED SEPARATELY A UN SECURITY COUNCIL DELEGATION PROPOSED DESIGNATING THE CAPITAL SARAJEVO AND THE TOWNS OF TUZLA GORAZDE AND ZEPA AS UN SAFE AREAS THE CLINTON ADMINISTRATION APPEARS TO BE CONSIDERING A TWOTRACK POLICY TO HELP BOSNIA'S MUSLIMLED GOVERNMENT COMBINING LIMITED AIR STRIKES AND A LIFTING OF AN INTERNATIONAL ARMS EMBARGO DEFENSE SECRETARY ASPIN ORDERED THE ARMED SERVICES TO REMOVE MOST BARRIERS KEEPING WOMEN OUT OF AIR AND SEA COMBAT AND TO JUSTIFY THOSE BARS THAT REMAIN IF CONGRESS AGREES TO REPEAL A LAW THAT PROHIBITS WOMEN FROM BEING ASSIGNED TO SHIPS ENGAGED IN COMBAT WOMEN MAY ALSO SERVE ON MOST NAVY SHIPS ATTORNEY GENERAL RENO SAID SHE WEIGHED ALL OPTIONS TO END THE WACO TEXAS STANDOFF INCLUDING TUNNELING INTO THE CULT COMPOUND BUT THE FAILED TEARGAS ATTACK SEEMED TO BE THE ONLY VIABLE PLAN RENO WAS THE FIRST WITNESS BEFORE A CONGRESSIONAL PANEL LOOKING INTO THE SIEGE AND APRIL 19 FIRE THAT KILLED CULT MEMBERS AND THEIR CHILDREN RUSSIA'S YELTSIN REMOVED HIS ANTAGONISTIC VICE PRESIDENT FROM THE CHAIRMANSHIP OF AN ANTICORRUPTION PANEL AND TOOK THE JOB HIMSELF MEANWHILE THE CONGRESS OF PEOPLE'S DEPUTIES DECLARED THAT LAST YEAR'S SELLOFF OF SOME STATE AND MUNICIPAL ENTERPRISES PART OF YELTSIN'S REFORM EFFORT WAS UNSATISFACTORY CLINTON TAPPED FORMER NEW YORK CITY POLICE COMMISSIONER LEE BROWN TO LEAD THE NATION'S WAR ON ILLEGAL DRUGS BROWN WHO ALSO SERVED AS POLICE CHIEF IN HOUSTON AND PUBLIC SAFETY COMMISSIONER IN ATLANTA WILL BE THE FIRST POLICE OFFICER EVER TO SERVE IN THE POST THE PRESIDENT HAS PLEDGED TO ELEVATE THE DRUG CZAR POSITION TO CABINET RANK THE US WILL BECOME MORE DIRECTLY ENGAGED IN THE MIDEAST PEACE TALKS TO PROD ISRAEL AND THE ARABS TOWARD AGREEMENT A SENIOR STATE DEPARTMENT OFFICIAL SAID ADDING THAT FURTHER DELAY CAN BE DANGEROUS ISRAELI NEGOTIATORS MEANWHILE SAID ISRAEL IS REVERSING THE EXILE OF 30 PALESTINIANS DEPORTED BETWEEN 1967 AND 1987 PREMIER CIAMPI ANNOUNCED THE FORMATION OF ITALY'S 52ND POSTWAR GOVERNMENT WHICH HAS A BROAD MANDATE TO REFORM THE COUNTRY'S POLITICAL SYSTEM THE GOVERNMENT WILL INCLUDE MEMBERS OF THE FORMER COMMUNIST PARTY NOW CALLED THE DEMOCRATIC PARTY OF THE LEFT FOR THE FIRST TIME SINCE 1947 THE CLINTON ADMINISTRATION PROPOSED A 13 BILLION FIVEYEAR PLAN TO DEVELOP HIGHSPEED RAILROAD LINKS BETWEEN MAJOR CITIES THE PLAN INCLUDES 1 BILLION TO IMPROVE CONVENTIONAL STEELWHEEL RAIL TRAVEL AND SOME 300 MILLION TO DEVELOP A NEW MAGNETIC LEVITATION TECHNOLOGY THAT WOULD ALLOW A MAXIMUM SPEED OF 300 MPH TAIWAN AND CHINA FAILED DURING TALKS IN SINGAPORE TO OVERCOME DIFFERENCES ON THE ISSUE OF PROTECTING TAIWANESE INVESTMENTS ON THE MAINLAND NONETHELESS THE DELEGATIONS TODAY WILL SIGN FOUR ACCORDS AT THE CONCLUSION OF THEIR HIGHLEVEL MEETINGS CHINA CRITICIZED CLINTON FOR MEETING WITH THE DALAI LAMA SAYING TIBET'S EXILED SPIRITUAL LEADER WAS AN ACTIVE OPPONENT OF THE BEIJING GOVERNMENT THE WHITE HOUSE SAID THE DALAI LAMA WHO VISITED CLINTON ON TUESDAY THANKED THE PRESIDENT FOR SUPPORTING HUMAN RIGHTS HOUSE AND SENATE NEGOTIATORS AGREED ON COMPROMISE LEGISLATION REQUIRING VOTER REGISTRATION AT PUBLIC ASSISTANCE OFFICES UNDER RULES AIMED AT PREVENTING POLITICAL COERCION BY WELFARE WORKERS THE COMPROMISE IS INTENDED TO CLEAR THE WAY FOR EARLY PASSAGE OF AN OVERALL VOTER REGISTRATION MEASURE HOUSING SECRETARY CISNEROS APPEALED FOR A SOCIAL CONTRACT BETWEEN THE FEDERAL GOVERNMENT AND THE NATION'S CITIES TO RESPOND TO PROBLEMS LIKE THOSE THAT LED TO LAST YEAR'S RIOTS IN LOS ANGELES HE TOLD A SENATE PANEL THAT THE CONTRACT WOULD INCLUDE A FORTHRIGHT DISCUSSION OF RACE AND ITS ROLE IN THE ECONOMIC PLIGHT OF CITIES 9304290147 930429 FORD POSTS 572 MILLION 1STPERIOD NET WARNS OF HEAVY PRESSURES ON PROFITS BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DEARBORN MICH FORD MOTOR CO POSTED A FIRSTQUARTER PROFIT OF 572 MILLION MORE THAN DOUBLE YEAREARLIER EARNINGS BEFORE AN ACCOUNTING CHARGE BUT FORD CAUTIONED THAT WEAK SALES IN EUROPE AND HIGHER COSTS IN THE US WILL KEEP PRESSURE ON PROFITS BUOYED BY THE FIRSTQUARTER RESULTS WHICH WERE STRONGER THAN MOST ANALYSTS HAD EXPECTED FORD SHARES JUMPED 1875 TO 5450 YESTERDAY IN HEAVY NEW YORK STOCK EXCHANGE TRADING SHARES OF CHRYSLER CORP AND GENERAL MOTORS CORP ALSO ROSE ON SIGNS OF IMPROVING CONSUMER CONFIDENCE GM IS SCHEDULED TO ANNOUNCE COMPLETE FIRSTQUARTER RESULTS TODAY FORD'S FIRSTQUARTER NET INCOME OF 102 A COMMON SHARE COMPARED WITH EARNINGS OF 223 MILLION OR 36 CENTS A SHARE A YEAR EARLIER BEFORE A CHARGE TO REFLECT RETIREE BENEFIT COSTS FORD RESTATED ITS 1992 RESULTS TO INCLUDE THE EFFECT OF AN ACCOUNTING CHANGE RELATED TO RETIREE BENEFITS THE RESTATED 1992 RESULT WAS A LOSS OF 67 BILLION OR 1385 A SHARE REVENUE IN THE FIRST QUARTER ROSE 89 TO 2676 BILLION DESPITE THE ENTHUSIASM ON WALL STREET FORD OFFICIALS STRUCK A CAUTIOUS TONE IN THEIR OUTLOOK PARTICULARLY FOR EUROPE WE ARE SEEING CONTINUING SIGNS OF A SLOW RECOVERY IN THE US FORD CHAIRMAN HAROLD A POLING SAID IN A STATEMENT FOR THE RECOVERY TO BE SUSTAINED JOB CREATION AND CONSUMER CONFIDENCE NEED TO IMPROVE AROUND THE WORLD WE STILL ARE GRAPPLING WITH WEAK ECONOMIES INTENSE COMPETITION AND EXCESS INDUSTRY CAPACITY ALL OF WHICH MAKE ACHIEVEMENT OF IMPROVED FINANCIAL RESULTS MORE DIFFICULT FORD HAD DECLARED THAT ITS GOAL WAS TO BREAK EVEN IN EUROPE FOR ALL OF 1993 REVERSING LAST YEAR'S LOSSES BUT DAVID N MCCAMMON FORD'S VICE PRESIDENT OF FINANCE SIGNALED IN A NEWS CONFERENCE YESTERDAY THAT IT WILL BE DIFFICULT TO GET TO THE BREAKEVEN POINT AT FORD OF EUROPE BECAUSE OF THE STEEPERTHANEXPECTED DECLINE IN OVERALL EUROPEAN AUTO SALES FORD SAID IT POSTED A LOSS OF 82 MILLION IN ITS EUROPEAN OPERATIONS LARGELY DUE TO AN OPERATING LOSS OF 56 MILLION AND A 45 MILLION WRITEOFF OF GOODWILL AT ITS JAGUAR UNIT JAGUAR'S OPERATING LOSS WAS NARROWER THAN THE PREVIOUS YEAR'S LOSS OF 93 MILLION AND FORD SAID ORDERS FOR ITS NEW MONDEO SMALL SEDAN INTRODUCED IN MARCH HAVE ALREADY REACHED 150000 ABOUT HALF OF WHAT IT EXPECTS TO SELL THIS YEAR THE EUROPEAN RESULTS COMPARED WITH AN 84 MILLION PROFIT A YEAR EARLIER OVERALL FORD'S OVERSEAS AUTO OPERATIONS EARNED 63 MILLION COMPARED WITH A 33 MILLION PROFIT A YEAR EARLIER MEANWHILE MR MCCAMMON ACKNOWLEDGED THAT FORD'S OVERALL RETURN ON SALES WHICH WAS SLIGHTLY LESS THAN 1 IN THE FIRST QUARTER WAS WELL BELOW THE 4 TO 5 PROFIT MARGINS FORD HAD IN THE LATE 1980S ANALYSTS SAID FORD OFFICIALS ALSO INDICATED THAT CERTAIN COSTS WERE LUMPED INTO THE FIRST QUARTER WHICH MAY HAVE SOMEWHAT DEPRESSED RESULTS THE BIGGEST CONTRIBUTOR TO THE NO 2 AUTO MAKER'S FIRSTQUARTER RESULTS WAS THE FINANCIAL SERVICES GROUP FORD'S FINANCING OPERATIONS EARNED 396 MILLION IN THE PERIOD DOWN SLIGHTLY FROM 460 MILLION IN THE 1992 QUARTER WHICH INCLUDED A 211 MILLION ONETIME GAIN RELATED TO ACCOUNTING CHANGES THE MEDIOCRE SELLING PACE IN THE US HOWEVER CONTINUES TO DAMP SALES MR MCCAMMON SAID THE US CAR AND LIGHTTRUCK MARKET IS MOVING AT A 135 MILLIONUNIT ANNUAL RATE STILL WELLBELOW THE 155 MILLIONUNIT ANNUAL PACE CONSIDERED NORMAL THIS IS A VERY SLOW RECOVERY MR MCCAMMON FORD RAN ITS US FACTORIES AT 93 OF STRAIGHTTIME CAPACITY WHICH EXCLUDES OVERTIME PRODUCTION IN THE CURRENT QUARTER MR MCCAMMON SAID FORD EXPECTS TO RUN ITS PLANTS AT 111 OF STRAIGHTTIME CAPACITY MR MCCAMMON SAID GAINS FROM INCREASED SALES ARE BEING PARTLY OFFSET BY COSTLY INCENTIVES WHICH AVERAGED 875 A VEHICLE IN THE FIRST QUARTER FORD'S PERVEHICLE INCENTIVE COSTS ARE DOWN FROM 1000 A YEAR EARLIER AND 1150 IN THE FOURTH QUARTER BUT DISCOUNT COSTS STILL EQUAL ABOUT 12 OF NORTH AMERICAN VEHICLE REVENUE UP FROM 6 IN THE MID1980S HE SAID IN ADDITION FORD SOLD 30 OF ITS VEHICLES TO FLEETS IN THE FIRST QUARTER UP SLIGHTLY FROM 29 A YEAR EARLIER PROFIT MARGINS ARE TYPICALLY LOWER ON VEHICLES SOLD FOR FLEETS THAN ON THOSE SOLD TO INDIVIDUALS FORD'S UNPROFITABLE THRIFT FIRST NATIONWIDE FINANCIAL CORP POSTED A SLIGHTLY WIDENED LOSS OF 17 MILLION IN THE FIRST QUARTER UP FROM A RESTATED LOSS OF 16 MILLION THE INSTITUTION CONTINUES TO STRUGGLE WITH LINGERING EFFECTS FROM RISKY REAL ESTATE VENTURES MR MCCAMMON SAID THE GOOD NEWS FIRST NATIONWIDE REDUCED ITS NONPERFORMING ASSETS TO LESS THAN 12 BILLION AT THE END OF THE QUARTER DOWN 20 FROM 14 BILLION A YEAR EARLIER OPERATING COSTS WERE CUT BY 13 9304290146 930429 WHO'S NEWS XEROX CORP APPOINTS BRITISH TELECOM AIDE ITS FINANCIAL CHIEF STAMFORD CONN XEROX CORP AIMING AT IMPROVING PRODUCTIVITY PLUCKED A NEW CHIEF FINANCIAL OFFICER FROM BRITISH TELECOMMUNICATIONS PLC BARRY D ROMERIL 49 YEARS OLD WILL HAVE THE ADDED TITLE OF EXECUTIVE VICE PRESIDENT BUT HIS PRIMARY MISSION WILL BE TO CONTINUE XEROX'S EFFORTS TO BOOST ITS RETURN ON ASSETS THE COMPANY'S TOP FINANCIAL JOB HAS BEEN VACANT SINCE STUART B ROSS BECAME CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE XEROX FINANCIAL SERVICES INC SUBSIDIARY IN 1990 THE DOCUMENTPROCESSING AND OFFICEPRODUCTS COMPANY SAID IT HOPES MR ROMERIL'S EXPERTISE IN COST CONTROL WILL PROVE USEFUL AS XEROX REFOCUSES ON ITS CORE BUSINESS OF DOCUMENT REPRODUCTION AND OTHER RELATED TECHNOLOGIES THE COMPANY IS IN THE PROCESS OF TRYING TO EXTRICATE ITSELF FROM ITS FORAY INTO FINANCIAL SERVICES THAT RESULTED IN A 788 MILLION AFTERTAX RESTRUCTURING CHARGE IN 1992'S FIRST QUARTER AT BRITISH TELECOM MR ROMERIL HELPED PLAN AND SPEARHEAD A PAINFUL THREEYEAR COSTCUTTING PROGRAM IN JUST THE PAST FISCAL YEAR ENDED MARCH 31 UNDER THAT PROGRAM BRITISH TELECOM'S EMPLOYMENT HAS FALLEN BY ABOUT 35000 TO 165000 AND THE COMPANY'S ONCEBLOATED PAYROLL IS A SHADOW OF THE 241000MEMBER WORK FORCE IT HAD WHEN IT WAS PRIVATIZED IN 1984 AT THE SAME TIME BECAUSE OF THE COSTCUTTING THE COMPANY HAS MANAGED TO MAINTAIN ITS PROFITS LARGELY UNSCATHED IN THE MIDST OF BRITAIN'S WORST RECESSION SINCE WORLD WAR II IN FACT SO POSITIVE WERE THE EARLY REVIEWS BY BIG INSTITUTIONAL INVESTORS IN LONDON OF MR ROMERIL'S EFFORTS THAT FINANCIAL ANALYSTS A FEW YEARS AGO BEGAN SPECULATING THAT HE MIGHT EVENTUALLY SUCCEED IAIN VALLANCE BRITISH TELECOM'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER BUT SINCE THEN MR ROMERIL'S STAR AT THE COMPANY HAS WANED AND MR VALLANCE HASN'T INDICATED ANY PLANS TO LEAVE 9304290145 930429 POLITICS & POLICY CLINTON'S ZIGZAGS BETWEEN POLITICS AND POLICY EXPLAIN SOME PROBLEMS OF HIS FIRST 100 DAYS BY JEFFREY H BIRNBAUM AND MICHAEL K FRISBY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON AS HIS FIRST 100 DAYS COME TO A CLOSE PRESIDENT CLINTON IS FIGHTING TO PRESERVE PARTS OF HIS ECONOMIC PACKAGE PERMIT HOMOSEXUALS IN THE MILITARY AND WIN A HUGE NEW AID PACKAGE FOR THE FORMER SOVIET UNION BUT EACH OF THESE ARE PART OF A BIGGER BATTLE THAT HELPS EXPLAIN WHY THE PRESIDENT IS CONTINUALLY IN SUCH HOT WATER BILL CLINTON IS AT WAR WITH HIMSELF ON ANY GIVEN DAY ON ANY SINGLE ISSUE MR CLINTON STRUGGLES OVER WHETHER TO BE A POLICY WONK OR A PURE POLITICIAN HE IS SKILLED AT BOTH BUT IS CONSTANTLY TORN BETWEEN FOLLOWING HIS OWN DEEPLY ROOTED SENSE OF WHAT MAKES THE MOST EFFECTIVE POLICY AND TAKING THE COURSE THAT HE KNOWS WILL IMPROVE HIS STANDING WITH THE ELECTORATE THE TUGS BETWEEN POLITICAL AND POLICY INTERESTS HAVE CONFRONTED EVERY PRESIDENT AND EVERY ONE HAS HANDLED THEM DIFFERENTLY PRESIDENT REAGAN WITH HIS VAST POLITICAL SKILLS FOCUSED ON DELIVERING A BASIC MESSAGE TO VOTERS AND LEFT THE POLICY DETAILS TO OTHERS PRESIDENT CARTER FOCUSED ON POLICY BUT OFTEN MISGAUGED THE POLITICAL FALLOUT OF HIS ACTIONS DEMOCRAT BERT LANCE MR CARTER'S CONFIDANT AND FIRST BUDGET DIRECTOR SAYS THAT MR CLINTON UNLIKE MR CARTER KNOWS THE POLITICS DON'T NECESSARILY FLOW FROM GOOD POLICY BUT IN TRYING TO BALANCE THE COMPETING CLAIMS MR CLINTON HAS TOO OFTEN WOUND UP LURCHING FROM ONE TO THE OTHER GIVING HIS ADMINISTRATION THE APPEARANCE OF SOMETIMES BEING RUDDERLESS IN PUBLICLY ATTACKING PHARMACEUTICAL COMPANIES FOR INSTANCE THE PRESIDENT SIDED WITH THE POLS LED BY CAMPAIGN GURU JAMES CARVILLE BUT THE ATTACKS ABRUPTLY STOPPED AFTER ROBERT RUBIN CHAIRMAN OF THE PRESIDENT'S NATIONAL ECONOMIC COUNCIL REGISTERED A STRONG OBJECTION IN RECENT DAYS THE WHITE HOUSE HAS REACHED OUT TO DRUG COMPANIES IN AN EFFORT TO SEEK COMPROMISE ON HOW TO CONTROL PRICES SIMILARLY WHILE POLITICAL ADVISERS TOLD THE PRESIDENT THAT HIS ECONOMIC STIMULUS PACKAGE WAS DEAD AFTER ITS DEFEAT AT THE HANDS OF SENATE REPUBLICANS MR CLINTON HAS REFUSED TO GIVE UP HE HAS DIRECTED HIS STAFF TO PUT ANOTHER BILL TOGETHER THIS TIME IN CONSULTATION WITH THE REPUBLICANS MOREOVER HE'S NOW CONTEMPLATING LINKING THE REWRITTEN JOBS BILL TO YET ANOTHER CONTROVERSIAL AND POLITICALLY DIFFICULT PROPOSAL HIS RUSSIAN AID PACKAGE HIS INSTINCT IS TO DO ALL THESE THINGS HE REALLY WANTS TO DO EVEN THOUGH HE ALSO KNOWS POLITICALLY HE SHOULD FOCUS ON JUST A FEW OF THEM SAYS JAMES PFIFFNER A POLITICAL SCIENTIST AT GEORGE MASON UNIVERSITY THE RESULT HE SAYS IS THAT THE PRESIDENT HAS TOO MANY THINGS ON HIS AGENDA AND HIS MESSAGE IS NOT CLEAN FINDING THE RIGHT BLEND OF POLITICS AND POLICY IS ESPECIALLY DIFFICULT FOR ACTIVIST PRESIDENTS SUCH AS MR CLINTON WHO COME TO OFFICE WITH SO MANY NEW IDEAS AND AT LEAST IN LAUNCHING HIS FIRST INITIATIVE HIS SWEEPING ECONOMIC PROPOSAL MR CLINTON SUCCEEDED IN BOTH ASPECTS BUT HE WAS UNABLE TO SUSTAIN THAT MOMENTUM IN THE WEEKS THAT FOLLOWED THE STRUCTURE OF THE CLINTON ADMINISTRATION HAS INSTITUTIONALIZED THE TENSION BETWEEN POLICY AND POLITICS IN THE WHITE HOUSE AND IN EACH DEPARTMENT OF GOVERNMENT VETERANS OF MR CLINTON'S SUCCESSFUL PRESIDENTIAL CAMPAIGN ARE CROSSING SWORDS WITH POLICY EXPERTS WHO HAVE LONG AWAITED A CHANCE TO PUT THEIR IDEAS INTO PRACTICE AND THE PRESIDENT CLEARLY FINDS IT DIFFICULT TO CHOOSE BETWEEN THEM THE FOUNDERING OF THE FIRST 100 DAYS IS A SURPRISE TO THOSE WHO WATCHED MR CLINTON DURING THE PRESIDENTIAL CAMPAIGN THEN HIS MESSAGE WAS ALWAYS CRISP AND SHARP WHILE HIS PROPOSALS WERE OFTEN VAGUE AS PRESIDENT HOWEVER THE OPPOSITE HAS BEEN TRUE ONE WAY TO EXPLAIN THIS REVERSAL IS THAT MR CLINTON IS REALLY A CLOSET POLICY EXPERT WHO PREFERS THE MINUTIAE OF TAX INCENTIVES AND AGRICULTURAL SUBSIDIES TO THE MORE SIMPLEMINDED DEVELOPMENT OF A MESSAGE THAT APPEALS TO THE MASS OF VOTERS ANOTHER FACTOR IS THAT MR CLINTON'S POLICY APPARATUS IS SIMPLY BETTER ORGANIZED INDEED MUCH OF MR CLINTON'S POLITICAL MACHINE HAS BEEN DISMANTLED JAMES CARVILLE THE POLITICAL WIZARD WHO DIRECTED THE CAMPAIGN HAS BEEN BUSY WITH HIS OWN VENTURES LATELY AND MUCH OF HIS TOP STAFF ARE ONLY PARTTIME ADVISERS TO THE PRESIDENT AS AT LEAST A PARTIAL REMEDY DISCUSSIONS ARE UNDER WAY TO GIVE THE POLITICAL PEOPLE MORE AUTHORITY WHITE HOUSE POLITICAL DIRECTOR RAHM EMANUEL FOR INSTANCE MAY BE GIVEN CONTROL OF THE INTERGOVERNMENTALRELATIONS SHOP WHITE HOUSE INSIDERS BLAME ITS DIRECTOR REGINA MONTOYA FOR NOT BUILDING ORGANIZED SUPPORT FROM MAYORS AND GOVERNORS FOR THE STIMULUS BILL ONCE IT RAN INTO TROUBLE IN THE QUEST TO FINETUNE THE WHITE HOUSE'S POLITICAL ANTENNAE SENIOR STAFFERS A FEW WEEKS AGO HUDDLED IN THE OVAL OFFICE WITH THE PRESIDENT TO TRY TO MAKE SURE HE WASN'T LOSING SIGHT OF HIS PRIORITIES THE RESULT IS THAT THE TORRENT OF NEW PROPOSALS HAS SLOWED SOMEWHAT AND THAT SOME OF THE NEW PROPOSALS WON'T BE PUSHED AS HARD AS OTHERS THE CAMPAIGN FINANCE BILL FOR INSTANCE IS BEING PUT FORWARD BUT MR CLINTON WON'T INSIST ON ITS PASSAGE RIGHT AWAY AIDES SAY REPUBLICANS ARE EXPECTING TO FILIBUSTER THE BILL IN THE SENATE ANYWAY YET THE PRESIDENT IS SO FAR CLINGING TIGHTLY TO HIS DESIRE TO PUSH HEALTHCARE REFORM THIS YEAR IN AN OVAL OFFICE MEETING TUESDAY EVENING TWO OF HIS TOP POLITICAL ADVISERS COMMUNICATIONS DIRECTOR GEORGE STEPHANOPOULOS AND WHITE HOUSE LOBBYIST HOWARD PASTER ECHOED THE SENTIMENT OF CONGRESSIONAL LEADERS AND URGED THAT THE PACKAGE BE DELAYED DIVING INTO THE HEALTHCARE PROBLEM WHILE THE ECONOMIC PACKAGE IS STILL BEING DEBATED RISKS BRINGING DOWN BOTH BILLS THEY CONTEND BUT MR CLINTON WHO HAS BEEN PRESSED BY POLICY ADVISER IRA MAGAZINER AND HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA TO FORGE AHEAD REFUSED TO DELAY HE INSISTED THAT THE HEALTH INITIATIVE MUST BE LAUNCHED ON TIME AND ENACTED THIS YEAR MR CLINTON'S PLANS TO REVIVE CITIES PROVIDE ANOTHER EXAMPLE OF THE CLASH BETWEEN HIS POLITICAL AND POLICY SIDES ON THE ONE HAND THE POLITICO WANTS TO FULFILL HIS CAMPAIGN PLEDGE TO USE TAX INCENTIVES TO ENCOURAGE DEVELOPMENT IN SOCALLED ENTERPRISE ZONES AND TO CREATE COMMUNITY DEVELOPMENT BANKS THAT WOULD FUND BUSINESS VENTURES IN THE INNER CITY DEMOCRATIC MAYORS AND HOUSING AND URBAN DEVELOPMENT SECRETARY HENRY CISNEROS WANT THESE PROGRAMS LAUNCHED QUICKLY TO SEND A NEW FLOW OF FEDERAL DOLLARS TO THE ADMINISTRATION'S MANY POLITICAL ALLIES IN CITIES AND LOCALITIES BUT MR CLINTON THE WONK THINKS THERE ISN'T ENOUGH MONEY IN THE BUDGET FOR THESE PROGRAMS TO HAVE MUCH IMPACT ON THE VAST URBAN PROBLEM JUST LAST WEEK WHITE HOUSE AIDE BOWMAN CUTTER TOLD COMMUNITY ACTIVISTS THAT THE PRESIDENT WAS LESS CONCERNED WITH CAMPAIGN PROMISES THAN WITH DEVISING A POLICY THAT WOULD REALLY MAKE A DIFFERENCE THE BOTTOM LINE THE MUCHBALLYHOOED URBAN PACKAGE HAS BEEN DELAYED WHILE THE ADMINISTRATION STUDIES ALTERNATIVES FOR MR CLINTON THE STILLUNANSWERABLE QUESTION IS WHETHER THE ZIGZAGS OF HIS EARLY DAYS SIMPLY REFLECT A SHAKEDOWN PERIOD AS THE ADMINISTRATION GETS UNDER WAY OR SET A PATTERN FOR THE NEXT FOUR YEARS THE ONE CERTAINTY IS THAT ANY DIRECTION HE HEADS IN WILL ATTRACT CRITICISM THIS IS THE FIRST PRESIDENT I'VE SEEN IN A LONG TIME WHO BY FOLLOWING HIS MORAL COMPASS IS GETTING BEAT UP FOR IT SAYS ROBERT BECKEL A DEMOCRATIC ANALYST AND VETERAN OF THE CARTER YEARS THE IRONY IS THAT HE HAS BEEN GETTING BEAT UP BECAUSE HE HAS NOT BEEN POLITICAL ENOUGH THEN WHEN HE BECOMES POLITICAL HE WILL GET BEAT UP FOR BEING TOO POLITICAL HOW THE HELL DO YOU WIN APPROVAL RATINGS ARE FOR THE DATE CLOSEST TO APRIL 29 CHANGE IN DOW JONES INDUSTRIAL AVERAE COVERS JAN 20 THROUGH APRIL 29 ASSUMED PRESIDENCY 9304290144 930429 TECHNOLOGY & HEALTH PIONEER PROJECT PUBLISHES FIRST RANKINGS OF CLEVELAND HOSPITALS BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL A PIONEERING INITIATIVE IN CLEVELAND AIMED AT PROVIDING EMPLOYERS WITH DATA ON HEALTH CARE QUALITY PUBLISHED ITS FIRST REPORT RATING THE PERFORMANCE OF THE CITY'S 31 HOSPITALS THE REPORT THE RESULT OF A WIDELY FOLLOWED 3 1/2YEAR EFFORT INVOLVING BUSINESS GROUPS HOSPITALS AND DOCTORS OFFERS AN EARLY LOOK AT THE KIND OF CONSUMER INFORMATION EXPERTS SAY WILL BE NEEDED IN COMMUNITIES AROUND THE US UNDER HEALTH REFORM PLANS BEING DEVELOPED BY THE CLINTON ADMINISTRATION IT STARTS TO PROVIDE THE INFORMATION THAT PEOPLE REALLY WANT COMPARATIVE QUALITY INDICATORS SAID CAROL CRONIN EXECUTIVE DIRECTOR OF THE MANAGED HEALTH CARE ASSOCIATION A GROUP OF BIG WASHINGTON DC EMPLOYERS THIS IS ONE OF THE BUILDING BLOCKS NECESSARY TO RESHAPE THE HEALTH CARE MARKET INDEED CLEVELAND OFFICIALS SAY THEY HOPE THE DATA WILL HELP EMPLOYERS AND CONSUMERS CHOOSE THE REGION'S BEST HEALTH CARE PROVIDERS AND EXERT PRESSURE ON DOCTORS AND HOSPITALS TO IMPROVE SERVICES HOSPITALS SAY THEY HAVE ALREADY USED THE DATA TO CHANGE PRACTICES AND INCREASE EFFICIENCY WE'VE ONLY ACCOMPLISHED ONEHALF THE OBJECTIVE TO PUT THE DATA OUT SAYS DWAIN HARPER EXECUTIVE DIRECTOR OF THE INITIATIVE KNOWN AS CLEVELAND HEALTH QUALITY CHOICE THE SECOND HALF IS TO MAKE SURE PURCHASERS USE THE INFORMATION TO MAKE BETTER PURCHASING DECISIONS WITH ESTIMATES OF EXCESS HOSPITAL CAPACITY IN THE CLEVELAND AREA RANGING FROM 2500 TO 5000 BEDS EMPLOYERS BELIEVE PURCHASING STRATEGIES THAT REWARD HIGHQUALITY LOWCOST HOSPITALS COULD HELP PROMPT A RESTRUCTURING OF THE LOCAL MARKET CLEVELAND BUSINESS AND HEALTH CARE LEADERS GAINED NATIONAL ATTENTION WHEN THEY ANNOUNCED THE PROJECT NEARLY FOUR YEARS AGO AS A COLLABORATIVE EFFORT AT A TIME WHEN EMPLOYERS AND HEALTH PROVIDERS WERE BATTLING OVER DISCOUNTS IN MOST COMMUNITIES THE PROJECT WAS A MARQUEE TOPIC AT HEALTH CARE CONFERENCES AND IT HELPED SPUR COALITIONS IN OTHER COMMUNITIES TO LAUNCH SIMILAR PROJECTS THE REPORT RATES THE 31 HOSPITALS BY NAME ON FOUR CATEGORIES PATIENT SATISFACTION GENERAL MEDICAL SERVICES GENERAL CLINICAL SERVICES AND INTENSIVE CARE THE CLINICAL AREAS REFLECT AN INSTITUTION'S TOTAL PERFORMANCE ON SUCH PROCEDURES AS OPENHEART SURGERY HIPREPLACEMENT SURGERY CONGESTIVE HEART FAILURE AND PNEUMONIA BASED ON DEATH RATES AND LENGTH OF HOSPITAL STAY THE STUDY DOESN'T RANK THE INSTITUTIONS BUT DESCRIBES THEIR ACTUAL PERFORMANCE AS ABOVE BELOW OR AT PREDICTED LEVELS BASED ON HOW SICK THEIR PATIENTS WERE EVEN WITH THE BREADTH OF SERVICES INCLUDED THE INDICATORS DON'T COVER SUCH AREAS AS COMPLICATIONS HOSPITAL READMISSIONS OR A PATIENT'S RETURN TO WORK THEY DON'T RATE OUTPATIENT SERVICES WHERE THE MAJORITY OF MEDICAL PROCEDURES ARE DONE AND THEY DON'T JUDGE WHETHER THE SERVICES THAT WERE PROVIDED WERE NECESSARY OR APPROPRIATE WE'RE AT THE MODEL T STAGE IN DEVELOPING MEASURES OF QUALITY IN HEALTH CARE SAYS ORRY JACOBS SENIOR VICE PRESIDENT STRATEGIC PLANNING AT UNIVERSITY HOSPITALS OF CLEVELAND ONE OF THE PARTICIPANTS IN THE PROJECT THE PATIENT SATISFACTION DATA ARE GATHERED WITH A WIDELY USED SURVEY THE INTENSIVE CARE RESULTS ARE DEVELOPED WITH A SOFTWARE SYSTEM KNOWN AS APACHE 3 MARKETED BY APACHE MEDICAL SYSTEMS WASHINGTON DC THAT PREDICTS AMONG OTHER THINGS A PATIENT'S CHANCE OF SURVIVING A HOSPITAL STAY BASED ON A VARIETY OF CLINICAL INDICATORS BUT WHEN THE PROJECT WAS LAUNCHED HOSPITALS DOCTORS AND EMPLOYERS DECIDED THAT THE HANDFUL OF SOCALLED SEVERITY SYSTEMS THEN ON THE MARKET FOR GENERAL MEDICAL AND SURGICAL CARE DIDN'T MEET THEIR NEEDS THEY SET OUT TO DEVISE THEIR OWN SYSTEM WITH THE HELP OF MICHAEL PINE & ASSOCIATES INC A CHICAGO CONSULTANT THE THREEYEAR DEVELOPMENT OF THE SYSTEM WAS AN ARDUOUS COLLABORATION BETWEEN EMPLOYERS AND PROVIDERS AIMED AT BUILDING CREDIBILITY AMONG DOCTORS AND HOSPITALS FOR A DATA SYSTEM THAT WOULD EVALUATE THEIR PERFORMANCE AND LIKELY AFFECT THEIR BUSINESS PROSPECTS THE PROJECT PLANS TO PUBLISH REPORTS EVERY SIX MONTHS PROVIDING BOTH NEW AREAS OF MEASUREMENT AS WELL AS TRENDS TO JUDGE HOSPITAL PERFORMANCE THE PROJECT HAS ALSO FORMED A NOTFORPROFIT CORPORATION CALLED QUALITY INFORMATION MANAGEMENT CORP THAT AMONG OTHER THINGS WILL MARKET THE NEW SEVERITY SYSTEM TO OTHER COMMUNITIES SAID DR HARPER OF CLEVELAND HEALTH QUALITY CHOICE BUSINESSES IN THE PROJECT INCLUDE MAJOR CORPORATIONS WITH MORE THAN 350000 EMPLOYEES AND DEPENDENTS AND THE COUNCIL OF SMALL ENTERPRISES REPRESENTING 12000 SMALL COMPANIES IN THE CLEVELAND AREA THE GREATER CLEVELAND HOSPITAL ASSOCIATION AND THE CLEVELAND ACADEMY OF MEDICINE A DOCTORS' GROUP ARE ALSO PARTICIPANTS IN THE PROJECT 9304290143 930429 MARKETING & MEDIA AT&T MCI CLAIM TO SNAG BIG CLIENTS FOR 800 SERVICE NEW YORK THE NATION'S TWO BIGGEST LONGDISTANCE COMPANIES MADE COMPETING CLAIMS YESTERDAY ABOUT SNAGGING AWAY BUSINESS CUSTOMERS OF 800 TOLLFREE SERVICE IN THEIR PUBLIC RELATIONS WAR OVER THE SERVICE AMERICAN TELEPHONE & TELEGRAPH CO SAID YESTERDAY THAT MORE THAN 10000 BUSINESS CUSTOMERS WITH A TOTAL OF MORE THAN 140 MILLION IN 800 SERVICE HAVE AGREED TO SWITCH TO AT&T ARCHRIVAL MCI COMMUNICATIONS INC IN WASHINGTON SAID THAT MORE THAN 50 OF AMERICA'S LARGEST CORPORATIONS AND FOUR STATE GOVERNMENTS WILL SWITCH FROM AT&T THE COMPANIES KEYED THEIR ANNOUNCEMENTS TO THE MAY 1 START OF PORTABILITY OF 800 NUMBERS UNDER A NEW RULE OF THE FEDERAL COMMUNICATIONS COMMISSION UNDER THE RULE 800 SERVICE CUSTOMERS CAN SWITCH CARRIERS WITHOUT HAVING TO SWITCH THEIR 800 NUMBERS 9304290142 930429 GAO URGES TREASURY DELAY OF COMPUTERIZED AUCTION WASHINGTON THE GENERAL ACCOUNTING OFFICE THE INVESTIGATIVE ARM OF CONGRESS SAID THE TREASURY SHOULD POSTPONE TODAY'S INAUGURAL RUN OF A COMPUTERIZED AUCTION OF GOVERNMENT SECURITIES BECAUSE FLAWS IN THE SYSTEM COULD IMPAIR MARKET INTEGRITY AND INCREASE BORROWING COSTS A TREASURY SPOKESMAN SAID THE DEPARTMENT HAS ADDRESSED MANY OF THE GAO'S CONCERNS AND THE AUCTION OF 52WEEK BILLS WILL TAKE PLACE AS PLANNED WE WOULD NOT TURN THIS THING ON UNLESS WE WERE CONFIDENT IN IT HE SAID THE NEW SYSTEM AVAILABLE ONLY TO THE BIGGEST BIDDERS WILL COMPUTERIZE THE PENCILANDPAPER BIDDING PROCESS THAT HAD BEEN IN PLACE FOR 60 YEARS THE NEW YORK FEDERAL RESERVE BANK THE TREASURY'S AGENT HAS EXPERIMENTED WITH THE NEW COMPUTER SYSTEM IN TRIAL RUNS CONDUCTING MOCK AUCTIONS AND LIVE PARALLEL AUCTIONS IN WHICH COMPUTER BIDS WERE SUBMITTED IN TANDEM WITH PAPER BIDS A NUMBER OF PROBLEMS WERE EXPERIENCED DURING TESTING OF THE NEW AUTOMATED AUCTION SYSTEM INCLUDING DEALERS BEING DISCONNECTED FROM THE MAINFRAME COMPUTER SYSTEM AND GLITCHES IN THE COMPUTER'S INTERNAL CLOCK THE GAO REPORT SAID SINCE ANTICIPATED BENEFITS ARE UNSUPPORTED AND THE RISK EXISTS THAT THE SYSTEM MAY NOT OPERATE AS INTENDED WE RECOMMEND THAT THE SECRETARY OF TREASURY DELAY PLACING THE SYSTEM IN OPERATION UNTIL THE DEPARTMENT DEMONSTRATES THAT INTENDED BENEFITS CAN BE ACHIEVED THE REPORT SAID 9304290141 930429 FINANCING BUSINESS DBL LIQUIDATING TRUST DBL LIQUIDATING TRUST NEW YORK DECLARED A DISTRIBUTION TO HOLDERS OF THREE CLASSES OF CERTIFICATES OF BENEFICIAL INTEREST TOTALING 137 MILLION THE TRUST WHICH WAS ESTABLISHED TO LIQUIDATE AND DISTRIBUTE THE ASSETS OF THE FORMER DREXEL BURNHAM LAMBERT GROUP SAID THAT OF THE TOTAL 113 MILLION WILL BE PAYABLE TO HOLDERS OF CBIAS 5460 PER CBIA AND 21 MILLION WILL BE PAYABLE TO HOLDERS OF CBIBS 669033 PER CBIB FOR THE FIRST TIME THE TRUST SAID A DISTRIBUTION WILL BE MADE TO HOLDERS OF CBICS IN THE AGGREGATE AMOUNT OF 3 MILLION 1362 PER CBIC A SPOKESMAN SAID PAYMENT ON THE C CERTIFICATES WAS TRIGGERED WHEN PAYMENT ON THE A CERTIFICATES REACHED A CERTAIN LEVEL ALL THE DISTRIBUTIONS ARE PAYABLE MAY 17 TO HOLDERS OF RECORD MAY 10 9304290140 930429 INTERNATIONAL TAIWAN AND CHINA FAIL TO RESOLVE INVESTMENT DISPUTE BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL SINGAPORE TAIWAN AND CHINA COMPLETING THEIR FIRST HIGHLEVEL TALKS IN MORE THAN 40 YEARS FAILED TO OVERCOME DIFFERENCES ON THE ISSUE OF PROTECTING TAIWANESE BUSINESS INVESTMENTS ON THE MAINLAND EVEN AFTER DELAYING THEIR CLOSING CEREMONY BY A DAY FOLLOWING A TWODAY MEETING IN SINGAPORE ALL THEY COULD DO WAS AGREE TO DISAGREE STILL THE DELEGATIONS ARE EXPECTED TO SIGN FOUR AGREEMENTS TODAY AND WHILE BOTH TEAMS OF NEGOTIATORS WERE DISAPPOINTED OVER THE FAILURE TO FIND A SOLUTION TO THE INVESTMENT ISSUE THEY EXPRESSED SATISFACTION THAT THEY AGREED ON AN ACCORD TO GUIDE FUTURE BILATERAL TALKS THE SIGNING OF THIS AGREEMENT WILL BE A HISTORIC MOMENT SAID TANG SHUBEI SECRETARYGENERAL OF BEIJING'S ASSOCIATION FOR RELATIONS ACROSS THE TAIWAN STRAIT THE UNOFFICIAL ORGANIZATION SET UP TO DEAL WITH TAIWAN CHEYNE CHIU THE HEAD OF TAIWAN'S STRAITS EXCHANGE FOUNDATION EXPRESSED SIMILAR SENTIMENTS TAKING THE TOTALITY OF WHAT WE HAVE ACHIEVED THIS MEETING IS IN THE BLACK HE SAID USING THE BUSINESS TERM TO INDICATE THE MEETING HAD BEEN PROFITABLE THE FOUR DOCUMENTS TO BE SIGNED TODAY BY THE TWO ORGANIZATIONS' CHAIRMEN BILLIONAIRE BUSINESSMAN CF KOO FROM TAIWAN AND FORMER SHANGHAI MAYOR WANG DAOHAN COVER A RANGE OF TOPICS RELATED TO THE COMPLICATED BUSINESS TOURISM AND FAMILY TIES THAT HAVE DEVELOPED IN RECENT YEARS DESPITE THE ABSENCE OF POLITICAL RELATIONS BETWEEN BEIJING AND TAIPEI THREE OF THE AGREEMENTS COVER DELIVERY OF REGISTERED LETTERS DOCUMENT VERIFICATION AND THE SCHEDULE FOR FUTURE REGULAR CONTACTS BETWEEN THE TWO ORGANIZATIONS MOST IMPORTANT IS THE ACCORD LAYING OUT AREAS IN WHICH TAIWAN AND CHINA HOPE TO STRENGTHEN COOPERATION THE AGREEMENT LISTS SPECIFIC BILATERAL ISSUES TO BE ADDRESSED BY THE TWO ORGANIZATIONS IN THE COMING YEAR INCLUDING FISHING DISPUTES REPATRIATION FROM TAIWAN OF ILLEGAL MAINLAND IMMIGRANTS JOINT EFFORTS TO COMBAT CRIME PROTECTION OF INTELLECTUALPROPERTY RIGHTS AND EFFORTS TO DEAL WITH DIFFERENCES IN THE TWO LEGAL SYSTEMS THE ACCORD ALSO DISCUSSES COOPERATION IN CULTURE EDUCATION AND SCIENCE AS WELL AS THE JOINT EXPLOITATION OF NATURAL RESOURCES BUT THE DELEGATIONS DEADLOCKED OVER LANGUAGE COVERING FUTURE TALKS ON THE PROTECTION OF TAIWAN INVESTMENTS IN CHINA WHICH MAY EXCEED 10 BILLION THE INVESTMENT IMPASSE REPRESENTS THE FIRST AREA IN WHICH THEIR DEEP POLITICAL DIFFERENCES HAVE STYMIED A CONSENSUS THROUGHOUT THE HARD NEGOTIATIONS DURING TWO DAYS OF FORMAL TALKS BETWEEN MESSRS KOO AND WANG TAIPEI INSISTED THAT BEIJING'S LEGAL PROTECTIONS FOR TAIWAN INVESTORS ARE INADEQUATE IT CALLED ON CHINA TO SIGN AN AGREEMENT PATTERNED ON BILATERAL INVESTMENT ACCORDS BEIJING HAS SIGNED WITH OTHER COUNTRIES SUCH A TREATY WOULD STRENGTHEN TAIPEI'S CLAIM THAT IT SHOULD BE TREATED AS AN EQUAL POLITICAL ENTITY IN RELATIONS WITH BEIJING A CONCEPT THAT CHINA REJECTS CHINA MAINTAINED THAT THE INVESTMENT GUARANTEES SHOULDN'T BE A MATTER OF CONCERN TO TAIPEI RATHER BEIJING SAYS IT CAN DEVISE IMPROVED INVESTMENT GUARANTEES BY WORKING DIRECTLY WITH INVESTORS 9304290139 930429 MOST DISABLED AMERICANS GET NO HOMECARE BENEFITS WASHINGTON NEARLY TWOTHIRDS OF AMERICANS WITH DISABILITIES RECEIVED NO FINANCIAL HELP WITH HOMECARE EXPENSES IN 1992 ACCORDING TO A REPORT FROM A HEALTHCARE REFORM GROUP AT A TIME WHEN THE CLINTON ADMINISTRATION IS WEIGHING THE ROLE OF HOME CARE IN ITS HEALTHCARE PACKAGE THE FAMILIES USA REPORT CONCLUDES THAT PEOPLE ESPECIALLY OLDER AND POORER ONES SHOULDER HEAVY OUTOFPOCKET BURDENS FROM HOMECARE EXPENSES HOME CARE FOR THE DISABLED COMBINED WITH HOME CARE FOR THOSE RECUPERATING FROM ACUTE HEALTH PROBLEMS COST 23 BILLION LAST YEAR THE GROUP SAID PRIVATE INSURANCE PAID 8 OF THE BILL WHILE FAMILIES PAID 30 MEDICARE PAID 35 AND MEDICAID PICKED UP THE REMAINING 25 ACCORDING TO THE REPORT AMONG THOSE WITH DISABILITIES OUTOFPOCKET COSTS WERE HIGHEST FOR PEOPLE WITH YEARLY INCOMES BETWEEN 7700 AND 13500 THE GROUP REPORTS THAT PEOPLE IN THIS BRACKET PAY AN AVERAGE OF 2679 A YEAR FOR HELP WITH ACTIVITIES SUCH AS BATHING DRESSING AND EATING THE MAJORITY OF PEOPLE WITH DISABILITIES WHO DIDN'T RECEIVE FINANCIAL HELP FOR HOME CARE WERE ELDERLY LIVED ALONE AND HAD YEARLY INCOMES BELOW 15000 RON POLLACK EXECUTIVE DIRECTOR OF FAMILIES USA SAID THE FINDINGS ILLUSTRATE THAT HOMECARE COSTS ARE GREATEST FOR THOSE WHO ARE MOST VULNERABLE 9304290138 930429 TECHNOLOGY & HEALTH MERCK'S MEVACOR DRUG AIDED LOWFAT DIET IN CHOLESTEROL STUDY BOSTON SWITCHING TO A LOWFAT LOWCHOLESTEROL DIET ONLY REDUCES BLOOD CHOLESTEROL LEVELS MINIMALLY WHILE MERCK & CO'S CHOLESTEROLLOWERING DRUG MEVACOR PRODUCES MUCH GREATER IMPROVEMENT ACCORDING TO A NEWLY PUBLISHED STUDY THE SMALL EFFECT OF DIET ON BLOOD CHOLESTEROL LEVELS WAS SURPRISING ACCORDING TO DONALD B HUNNINGHAKE PROFESSOR OF MEDICINE AT THE UNIVERSITY OF MINNESOTA AND LEAD RESEARCHER IN THE STUDY PUBLISHED IN THE NEW ENGLAND JOURNAL OF MEDICINE THIS WEEK THE MEVACOR RESULTS WERE CONSISTENT WITH PREVIOUS STUDIES HE ADDED BUT DR HUNNINGHAKE NOTED WIDE VARIATION IN THE RESULTS AND SOME PATIENTS SHOWED MUCH GREATER BENEFIT FROM DIETARY CHANGES MOREOVER HE SAID DIETS HIGH IN FRUIT AND VEGETABLES PRODUCE OTHER HEALTH BENEFITS PHYSICIANS SHOULD STILL TRY TO GET PATIENTS TO REDUCE FAT AND CHOLESTEROL INTAKE AND TO EXERCISE AND LOSE WEIGHT DR HUNNINGHAKE SAID IF CHOLESTEROL LEVELS REMAIN HIGH AFTER SIX MONTHS PHYSICIANS SHOULD CONSIDER DRUG THERAPY HE ADDED THE STUDY WAS THE FIRST TO EXAMINE THE EFFECTS OF DIET AND PRESCRIPTION DRUGS ON CHOLESTEROL IN OUTPATIENTS ACCORDING TO DR HUNNINGHAKE THE RESEARCHERS EXAMINED THE EFFECTS OF FOUR DIETANDDRUG COMBINATIONS A HIGHFAT DIET WITH A PLACEBO A LOWFAT DIET WITH A PLACEBO A HIGHFAT DIET WITH MEVACOR AND A LOWFAT DIET WITH MEVACOR THE 97 PATIENTS UNDERWENT ALL FOUR TREATMENTS EACH LASTING NINE WEEKS A LOWFAT DIET REDUCED PATIENTS' LOWDENSITY LIPOPROTEIN LDL CHOLESTEROL ON AVERAGE BY 5 COMPARED WITH A 32 REDUCTION WHEN A LOWFAT DIET WAS COMBINED WITH MEVACOR THE DRUG ALONE REDUCED LDL CHOLESTEROL BY 27 ANY BENEFIT FROM LOWER LDL CHOLESTEROL LEVELS PRODUCED FROM THE LOWFAT DIET WERE POSSIBLY ERASED BY REDUCTIONS IN HIGHDENSITY LIPOPROTEIN HDL THE GOOD CHOLESTEROL THOUGHT TO REDUCE THE RISK OF HEART DISEASE THE RESEARCHERS SAID MERCK FUNDED THE STUDY BUT WASN'T INVOLVED IN THE DATA COLLECTION ANALYSIS AND LABORATORY WORK 9304290137 930429 FINANCING BUSINESS AAMES FINANCIAL CORP AAMES FINANCIAL CORP LOS ANGELES SAID IT PLANS TO FILE A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PUBLIC OFFERING OF APPROXIMATELY 22 MILLION SHARES OF COMMON STOCK APPROXIMATELY 14 MILLION SHARES WILL BE SOLD BY THE COMPANY WITH THE BALANCE FROM A SELLING SHAREHOLDER THE COMPANY WHICH COMPLETED ITS INITIAL PUBLIC OFFERING IN DECEMBER 1991 WILL HAVE APPROXIMATELY 58 MILLION SHARES OUTSTANDING AFTER COMPLETION OF THE OFFERING 9304290136 930429 WHO'S NEWS CAMECO CORP CAMECO CORP SASKATOON SASKATCHEWAN THIS URANIUM MINING CONCERN NAMED BERNARD M MICHEL 55 YEARS OLD TO THE ADDITIONAL POST OF CHAIRMAN MR MICHEL WHO REMAINS PRESIDENT AND CHIEF EXECUTIVE OFFICER SUCCEEDS WILLIAM A GATENBY AS CHAIRMAN MR GATENBY 67 RETIRED 9304290135 930429 MARKETING & MEDIA TALENT AGENCY FUROR OVER CLASHING ROLES MAY COOL FOR A TIME ENTERTAINMENT INDUSTRY GUILDS ARE EXPECTED NOT TO BLOCK CAA'S ROLE AT FRENCH BANK BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD THE LATEST ACT IN HOLLYWOOD'S HIGHLY VISIBLE DRAMA THE WAR OF THE TALENT AGENTS MAY BE DRAWING TO A CLOSE BUT THE SHOW MAY NOT YET BE OVER ACCORDING TO INDIVIDUALS CLOSE TO THE SITUATION THREE ENTERTAINMENT INDUSTRY LABOR ORGANIZATIONS WERE PREPARING A STATEMENT SAYING THEY WOULDN'T TRY TO BLOCK CREATIVE ARTISTS AGENCY'S NEW ROLE AS AN ADVISER TO CREDIT LYONNAIS SA FUTHERMORE THE STATEMENT WOULD SAY THAT CAA HAD ASSURED THE GUILDS IT WOULD STAY AWAY FROM THE SPECIFIC MOVIEMAKING ACTIVITIES OF COMPANIES OWNED BY THE BANK BUT THE PHRASING OF THE STATEMENT WAS IN FLUX AS DISCUSSIONS AMONG THE SOMETIMES FRACTIOUS GUILDS CONTINUED LATE LAST NIGHT IN ANY EVENT THE STATEMENT IS EXPECTED TO BE VIEWED BY THE INDUSTRY AS A VICTORY FOR CAA THE GUILDS DECLINED TO COMMENT JEFFREY BERG CHAIRMAN OF RIVAL TALENT AGENCY INTERNATIONAL CREATIVE MANAGEMENT HAD ACCUSED CAA LED BY CHAIRMAN MICHAEL OVITZ OF CONFLICT OF INTEREST IN REPRESENTING THE FRENCH STATEOWNED BANK WHICH OWNS SEVERAL MOVIE PRODUCERS INCLUDING 985 OF THE METROGOLDWYNMAYER INC STUDIO ICM PLANS TO CONTINUE THE FIGHT IT SAYS ITS ATTORNEYS HAVE CONTACTED THE US DEPARTMENT OF JUSTICE AND THE FEDERAL TRADE COMMISSION ABOUT POSSIBLE ANTITRUST OR RESTRAINT OF TRADE ISSUES IN 1962 THE JUSTICE DEPARTMENT CONSENT DECREE FORCED MCA TO SHED ITS CLIENT REPRESENTATION BUSINESS WHEN IT BEGAN PRODUCING MOVIES AND TELEVISION THE UNIONS WERE IN AN AWKWARD POSITION WHEN THE DISPUTE ERUPTED BECAUSE THE TALENT AGENCIES ARE THE TWO INDUSTRY LEADERS REPRESENTING MANY OF THE MOST SUCCESSFUL MEMBERS OF THE SCREEN ACTORS GUILD THE DIRECTORS GUILD OF AMERICA AND THE WRITERS GUILD OF AMERICA WEST TWO WEEKS AGO THE GUILDS BEGAN HOLDING MEETINGS WITH CAA AND RECEIVING ASSURANCES THAT CAA WOULDN'T INFLUENCE DECISIONS OR VIOLATE CONFIDENCES IN THE MOVIEMAKING ACTIVITIES OF MGM AND OTHERS AS MR BERG HAD COMPLAINED WOULD OCCUR ALL THIS HAS PLAYED AGAINST A BACKDROP OF FURIOUS MEDIA COVERAGE ICM HIRED A CRISIS MANAGEMENT PUBLIC RELATIONS FIRM CAA DESPITE AN OCCASIONAL BLUNDER IS WELLKNOWN IN HOLLYWOOD AS BEING QUIETLY ADROIT IN ITS PRESS RELATIONS THE TWO RIVAL TRADE NEWSPAPERS SEEMED TO REFLECT THE SPLIT OVER THE ISSUE VARIETY SEEMED MOST FAMILIAR WITH CAA'S POINT OF VIEW WHILE READERS COULD GET A FIX ON ICM'S LINE FROM THE HOLLYWOOD REPORTER ICM AND CAA HAVE LONG COMPETED IN HOLLYWOOD BUT WHEN CREDIT LYONNAIS HIRED CAA THE HERETOFORE LOWPROFILE MR BERG BEGAN WAGING A VIRTUAL JIHAD CAA HAD LONG BEEN STRETCHING THE BONDS OF THE CONVENTIONAL TALENT AGENCY TRADE THE AGENCY REPRESENTED SONY CORP IN ITS PURCHASE OF COLUMBIA PICTURES INC THEN MATSUSHITA ELECTRIC INDUSTRIAL CO IN ITS ACQUISITION OF MCA IT DEVELOPED TV COMMERCIALS FOR COCACOLA CO MR BERG INSISTED THAT CAA HAD CROSSED THE LINE THIS TIME RAISING CONFLICT OF INTEREST ISSUES BY AND LARGE OTHER HOLLYWOOD AGENCIES AVOIDED THE FRAY INDIVIDUALS CLOSE TO CAA SAY ITS ROLE IS TO STABILIZE AND ENHANCE THE POSITION OF THE BANK'S TROUBLED ENTERTAINMENT HOLDINGS WITH A VIEW TOWARD SELLING THEM WHICH IT MUST BY 1997 ACCORDING TO US BANKING LAWS FOR THE BANK RETAINING CAA PARTLY WAS DESIGNED TO INSPIRE CONFIDENCE AMONG ACTORS WRITERS AND DIRECTORS DESPITE A PROVEN PRODUCTION TEAM MGM HAS HAD TROUBLE ATTRACTING CERTAIN MOVIE PROJECTS BECAUSE OF RUMORS THE STUDIO WOULD BE SOLD OR BROKEN UP CAA IS SAID TO BE EXAMINING THE POSSIBILITY OF RESTARTING MGM'S TELEVISION UNIT AND RESUSCITATING THE UNITED ARTISTS NAME WHICH MGM OWNS CAA STRESSED TO THE GUILDS THAT IT WANTS TO KEEP THE STUDIO INTACT NOT SELL IT OFF IN PIECES AND THEREFORE SHORE UP HOLLYWOOD EMPLOYMENT MR BERG IN AN INTERVIEW SAID HE ALSO SUPPORTED MGM'S SURVIVAL THE PRESERVATION OF JOBS AND THE CONTINUED SUPPORT OF HOLLYWOOD BY THE BANK BUT HE SAID THE PRINCIPAL ISSUE OF AN AGENCY REPRESENTING A MOVIE STUDIO AS WELL AS INDIVIDUAL CLIENTS NEEDED TO BE ADDRESSED 9304290134 930429 WHO'S NEWS DELTA AIR LINES DELTA AIR LINES ATLANTA THOMAS J SLOCUM 44 YEARS OLD WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT OF CORPORATE COMMUNICATIONS OF THIS AIRLINE EFFECTIVE JUNE 1 HE IS EXECUTIVE DIRECTOR OF CORPORATE COMMUNICATIONS AT TENNECO INC 9304290133 930429 DIVIDEND NEWS RHONEPOULENC RORER INC RHONEPOULENC RORER INC BOOSTED ITS QUARTERLY DIVIDEND 9 TO 24 CENTS A SHARE FROM 22 CENTS PAYABLE MAY 28 TO SHARES OF RECORD MAY 10 THE COLLEGEVILLE PA PHARMACEUTICAL COMPANY SAID THE INCREASE IS THE SEVENTH CONSECUTIVE QUARTERLY DIVIDEND INCREASE 9304290132 930429 LONESTAR ROBIN HOOD MENACES TEXAS BY WILLIAM MURCHISON WHEN TEXANS AS HAPPENS OFTEN THESE DAYS GET ON THE TOPIC OF ROBIN HOOD IT ISN'T BECAUSE OF POSTFRONTIER NOSTALGIA FOR ROVING OUTLAWS IT'S BECAUSE OF A LESS ROMANTIC BREED OF HIJACKER THE POLITICIAN ON MAY DAY THE SAME DATE AS THE ELECTION TO FILL THE US SENATE SEAT VACATED BY TREASURY SECRETARY LLOYD BENTSEN TEXANS VOTE ON A CONSTITUTIONAL AMENDMENT THAT WOULD ALLOW THE STATE TO ROB RICH SCHOOL DISTRICTS OF SUPPOSEDLY SUPERFLUOUS PROPERTY TAX REVENUES THESE REVENUES THE STATE WOULD THEN THOUGHTFULLY DISTRIBUTE TO NEEDIER DISTRICTS THE STATE'S DEMOCRATIC LEADERSHIP WANTS THIS DONE FOR VARIOUS UNEDIFYING REASONS EG THE LEADERSHIP FROM GOV ANN RICHARDS ON DOWN CAN'T THINK OF ANYTHING ELSE TO DO A WHILE BACK THE STATE SUPREME COURT SAID TEXAS HAD TO HAVE A NEW FUNDING SYSTEM THAT PROVIDES PROPERTYPOOR DISTRICTS AS MUCH ACCESS TO PROPERTYTAX REVENUES AS RICH ONES OK VENTURED THE LEGISLATURE PRODDED BY A REPUBLICAN GOVERNOR WILLIAM P CLEMENTS JR HOW ABOUT MORE STATE FUNDS FOR THESE DISTRICTS NOPE REPLIED THE COURT CRYPTICALLY THAT WON'T DO ALL RIGHT SAID THE LEGISLATURE BY WHICH TIME THE GOVERNORSHIP HAD PASSED FROM REPUBLICAN TO DEMOCRATIC HANDS SUPPOSE WE MERGE FOR TAXING PURPOSES THE RESOURCES OF RICH AND POOR DISTRICTS A RICH DISTRICTONE SAY WITH A NUCLEAR PLANT OR SOME OIL WELLS WOULD HELP FUND ITS NEIGHBORS' SCHOOLS CAN'T DO IT THE SUPREME COURT REPLIED THE STATE CONSTITUTION BANS STATE PROPERTY TAXES AS WELL AS TAXES NOT LEVIED BY DIRECT POPULAR VOTE THE POLITICIANS FELL BACK IN CONFUSION BUT SOME UNWONTED MENTAL EXERTION PRODUCED THE INSIGHT THAT IF IT'S UNCONSTITUTIONAL TO DO ROBIN HOOD BY STATUTE YOU CAN CONSTITUTIONALIZE IT THROUGH AMENDMENT SUCH IS THE AIM OF THE BALLOT PROPOSITION ON THE HOLIDAY FORMERLY OBSERVED IN THE SOVIET UNION AND ELSEWHERE AS THE DAY FOR RANTING AT CAPITALISTS YOU WILL HAVE NOTICED IN THIS RECOUNTING A BIG OMISSION THE SIZE OF THE EDUCATIONAL GAINS TO BE EXPECTED FROM THE REDISTRIBUTION OF ALL THESE GOODIES THE OMISSION IS DELIBERATE NOBODY KNOWS DOODLY SQUAT AS WE TEXANS ARE WONT TO SAY ABOUT HOW YOU TAKE ALL THIS MONEY AND PURCHASE WONDERFUL ACADEMIC GAINS CERTAINLY THERE IS LITTLE POINT IN PROMISING THAT X GAINS WOULD FLOW FROM Y EXPENDITURES ASTUTE OBSERVERS WOULD GIVE THE HORSE LAUGH THEY'D BRING UP RUDELY ENOUGH THE 134 INCREASE IN STATE EDUCATIONAL SPENDING THAT OCCURRED IN TEXAS BETWEEN THE 198182 BIENNIUM AND THE 199192 BIENNIUM AT A TIME WHEN ENROLLMENT WAS RISING JUST 294 LIKELY THEY'D WANT TO KNOW WHY TEXAS SLIPPED FIVE NOTCHES FROM 41ST TO 46TH IN SCHOLASTIC APTITUDE TEST SCORES BETWEEN THE LATE '70S AND THE EARLY '90S THEY'D BE CURIOUS ALSO TO KNOW WHY ONLY 49 OF TEXAS PUBLIC SCHOOL PERSONNEL ARE TEACHERS COMPARED WITH THE NATIONAL AVERAGE OF 53 ANY REPUTATION TEXAS MIGHT ENJOY FOR BUREAUCRATOPHOBIA IS SADLY INFLATED THE TEXAS STATE TEACHERS ASSOCIATION RECENTLY CHARGED THAT MIDMANAGEMENT POSITIONS IN THE PUBLIC SCHOOLS GREW 40 OVER THE PAST FOUR YEARS 80 OF TEXAS SCHOOL DISTRICTS SPEND MORE THAN 20 OF THEIR OPERATING FUNDS ON ADMINISTRATION WHEN PUBLIC SCHOOLS IN ARLINGTON A CITY BETWEEN DALLAS AND FORT WORTH ENCOUNTERED A 126 MILLION BUDGET SHORTFALL SCHOOL TRUSTEES SAVED AN IMMEDIATE 2 MILLION THROUGH A ONETHIRD CUT IN ADMINISTRATIVE PERSONNEL THE NEW SUPERINTENDENT ALLOWED THAT REMAINING PERSONNEL COULD RUN THE DISTRICT JUST FINE THOSE VARIOUS CONSIDERATIONS NOTWITHSTANDING STATE LEADERS FROM THE GOVERNOR ON DOWN ARE PUTTING ON A FULLCOURT PRESS FOR ROBIN HOOD WHY COULD THIS WHOLE BUSINESS YOU ASK BE ABOUT MORE THAN EDUCATION OH MOST ASSUREDLY IT'S CHIEFLY ABOUT POLITICAL CONTROL HISPANICMAJORITY SCHOOL DISTRICTS IN SOUTHERN TEXAS ARE KEEN TO SHARE OTHER DISTRICTS' FUNDS AND THE DEMOCRATIC POLITICIANS WHO COURT THEM ARE TRYING TO OBLIGE MOREOVER THE RUMOR IS WIDESPREAD AND FOR MY MONEY BANGON ACCURATE THAT THE LEADERSHIP WANTS ROBIN HOOD TO PASS IN ORDER TO MAKE PROPERTY TAXES HURT SO MUCH THAT THE VOTERS WILL CLAMOR FOR ENACTMENT OF A STATE INCOME TAX THE POLITICIANS SEEM UNABLE OTHERWISE TO APPEASE THEIR APPETITE FOR REVENUES THE OIL INDUSTRY HAVING LONG SINCE PASSED ITS PEAK RECENTLY A STUDY BY THE UNIVERSITY OF SOUTHERN CALIFORNIA CALLED TEXAS'S FUNDING SYSTEM BETTER THAN AVERAGE IN TERMS OF EQUITY DISPARITIES THE SCHOLARS SAID RESULT FROM THE LEGISLATURE'S FAILURE FULLY TO FUND THE 16 BILLION SYSTEM A DEMOCRATIC STATE DISTRICT JUDGE IN AUSTIN ONE SCOTT MCCOWN HAS EGGED ON PROROBIN HOOD EFFORTS WITH THE THREAT TO SHUT DOWN THE PUBLIC SCHOOLS SHOULD ROBIN HOOD LOSE AND A CONFUSED LEGISLATURE FAIL BY JUNE 1 TO REFORM THE FUNDING SYSTEM OH YEAH SURE ONE CAN JUST SEE OUR ELECTED JUDICIARY SAYING TO PARENTS NO YOU CAN'T SEND YOUR PRECIOUS KIDS TO SCHOOL WHY NOT BECAUSE YOU DIDN'T VOTE RIGHT IT LOOKS LIKE A MESS AND IT IS YET TEXAS WHICH HAS SURVIVED COMANCHE WAR PARTIES AND CANADIAN DEVELOPERS IS NOT SUNK YET EX MALO BONUM FROM EVIL MAY COME GOOD IS THE OPERATIVE EXPRESSION IF ROBIN HOOD GOES DOWN AS MAY WELL HAPPEN IN SPITE OF POLITICAL MACHINATIONS PROPOSALS FOR SCHOOL CHOICE MAY RECEIVE THE FAIR HEARING THAT HAS SO LONG ESCAPED THEM AROUND HERE IF WE ARE TRULY LUCKY THE DEBATE MIGHT EVEN BE WIDENED TO ENCOMPASS CREATION OF A FULLFLEDGED VOUCHER SYSTEM THE CONSTITUTIONAL DEFECT THE STATE SUPREME COURT IMPUTES TO THE EDUCATIONAL FUNDING SYSTEM IS INEFFICIENCY SET ASIDE THE PALPABLE INEFFICIENCY OF THE ROBIN HOOD APPROACH WHEN IT COMES TO GENERATING EDUCATIONAL ACHIEVEMENT WHAT COULD BE MORE EFFICIENT THAN PROVIDING EVERY STUDENT AS FAR AS IT'S HUMANLY POSSIBLE ACCESS TO THE SCHOOL OF HIS CHOICE WERE TEXAS TO SET UP A FULL VOUCHER PROGRAM A WHOLE NETWORK OF NEW PRIVATE SCHOOLS WOULD SPRING UP TO COMPETE WITH THE STATE SCHOOLS AND EXISTING PRIVATE INSTITUTIONS BUREAUCRACYLADEN PUBLIC SCHOOLS WOULD HAVE TO TRIM DOWN AND OFFER A MEANINGFUL COMPETITIVE PRODUCT ISN'T THAT A REASONABLE DEFINITION OF EFFICIENCY IN OLDEN TIMES AS THIS PUBLIC SCHOOL PRODUCT CAN TESTIFY TEXAS PUBLIC SCHOOLS WORKED PRETTY WELL THAT DAY IS AS DEAD AS ROBIN HOOD'S BAND WE NEED SOMETHING NEW ANYONE WITH A MORE CREATIVE HOPEFUL IDEA THAN VOUCHERS SHOULD STEP FORWARD AND DECLARE IT MR MURCHISON IS A COLUMNIST FOR THE DALLAS MORNING NEWS 9304290131 930429 INTERNATIONAL TAIWANCHINA TRADE RISES TAIPEI TAIWAN'S INDIRECT TRADE WITH CHINA THROUGH HONG KONG CLIMBED 30 TO 117 BILLION IN THE FIRST TWO MONTHS OF 1993 FROM 900 MILLION A YEAR EARLIER THE BOARD OF FOREIGN TRADE REPORTED IN THE FIRST TWO MONTHS OF 1993 TAIWAN'S EXPORTS TO CHINA LEAPT 37 TO 102 BILLION FROM 741 MILLION A YEAR EARLIER WHILE IMPORTS FELL 5 TO 151 MILLION FROM 159 MILLION A YEAR EARLIER THE GOVERNMENT AGENCY ATTRIBUTED THE 30 LEAP IN THE TAIWANCHINA TRADE AND 37 JUMP IN EXPORTS TO RISING TAIWANESE INVESTMENTS IN CHINA AND SHIPPING OF SEMIFINISHED PRODUCTS TO MAINLAND CHINA FOR PRODUCTION AND REEXPORTS FOR ALL OF 1992 THE AGENCY SAID TAIWAN'S INDIRECT TRADE WITH CHINA VIA HONG KONG GREW 28 TO 741 BILLION FROM 579 BILLION A YEAR EARLIER 9304290130 930429 INTERNATIONAL ITALY'S CIAMPI INCLUDES IN NEW CABINET MEMBERS OF FORMER COMMUNIST PARTY BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL ROME ITALY'S PRIME MINISTER DESIGNATE CARLO AZEGLIO CIAMPI FINISHED FORMING THE NATION'S NEW GOVERNMENT INCLUDING MEMBERS OF THE FORMER COMMUNIST PARTY FOR THE FIRST TIME EVER THE NEW GOVERNMENT ITALY'S 52ND SINCE THE REPUBLIC WAS FORMED AFTER WORLD WAR II GIVES CABINET POSTS TO EIGHT NEW FACES AND TO SEVERAL MINISTERS FROM THE LAST ITALIAN GOVERNMENT IN A STATEMENT LATE YESTERDAY THE DEMOCRATIC PARTY OF THE LEFT AS THE FORMER COMMUNIST PARTY IS NOW KNOWN SAID IT WOULD WAIT UNTIL THE GOVERNMENT'S PROGRAM IS PRESENTED IN PARLIAMENT BEFORE MAKING A DECISION ON WHETHER TO JOIN THE COALITION THE FOUR PARTIES IN THE OUTGOING COALITION GOVERNMENT OF GIULIANO AMATO BADLY DISCREDITED BY CORRUPTION SCANDALS HAVE ALREADY GIVEN SUPPORT TO MR CIAMPI BUT PARTY LEADERS HAVE SAID THAT A BROADERBASED COALITION IS NECESSARY TO GIVE MR CIAMPI ENOUGH POLITICAL SUPPORT TO ENACT RADICAL ELECTORAL REFORM AND FURTHER ECONOMIC AUSTERITY MEASURES MR CIAMPI IS THE FIRST PREMIER WITHOUT A POLITICAL AFFILIATION IN POSTWAR TIMES MEMBERS OF THE SMALL REPUBLICAN PARTY AS WELL AS THE GREEN PARTY ALSO INDICATED YESTERDAY THAT THEY MAY ENTER THE GOVERNMENT BUT THE ENTRANCE OF THE DEMOCRATIC PARTY OF THE LEFT OR PDS IS CONSIDERED KEY TO BUILDING A COALITION STRONG ENOUGH TO LEGISLATE REFORM AMONG THE NEW FACES NAMED YESTERDAY WERE AUGUSTO BARBERA A PDS DEPUTY AND A LEADER OF THE VICTORIOUS REFERENDUM MOVEMENT ON ELECTORAL REFORM WHO WILL BECOME MINISTER OF PARLIAMENTARY RELATIONS PAOLO SAVONA A NOTED ECONOMIST WILL BECOME MINISTER OF INDUSTRY VINCENZO VISCO APPOINTED FINANCE MINISTER IS AN ECONOMIST HELD IN HIGH REGARD BY THE PDS LUIGI BERLINGUER ALSO CLOSELY ASSOCIATED WITH THE PDS WAS NAMED TO THE POST OF UNIVERSITY MINISTER LUIGI SPAVENTA THE NEW BUDGET MINISTER IS ONE OF ITALY'S LEADING ECONOMISTS AND HAS WORKED CLOSELY WITH THE TREASURY MINISTRY THOSE MINISTERS NAMED FROM MR AMATO'S GOVERNMENT INCLUDE PIERO BARUCCI AS TREASURY MINISTER NICOLA MANCINO AS MINISTER OF THE INTERIOR GIOVANNI CONSO AS JUSTICE MINISTER AND ROSA JERVOLINO AS EDUCATION MINISTER THE NEW GOVERNMENT WILL BE SWORN IN THIS MORNING AND MUST SURVIVE A CONFIDENCE VOTE IN PARLIAMENT 9304290129 930429 AUTO MAKERS AIR GRIPES AS WHITE HOUSE TRIES TO FORMULATE POLICY FOR INDUSTRY BY ASRA Q NOMANI AND BRUCE INGERSOLL STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON TOP CLINTON ADMINISTRATION OFFICIALS LENT A SYMPATHETIC EAR TO DETROIT'S COMPLAINTS ON TRADE REGULATORY AND HEALTHCARE ISSUES BUT OFFERED NO PROMISES ACCORDING TO PARTICIPANTS THE GOVERNMENTINDUSTRY MEETING YESTERDAY CAME AS THE ADMINISTRATION GRAPPLES WITH THE QUESTION OF HOW TO HELP SUCH INDUSTRIES AS AUTOS AND AEROSPACE THAT SUCH A SESSION COINED A LISTENING MEETING EVEN OCCURRED IS A TELLING SIGN THE CLINTON TEAM IS INTERESTED IN DEVISING A POLICY TO BOOST THE POSITION OF AUTO MAKERS IN THE WORLD MARKET GENERAL MOTORS CORP CHAIRMAN JOHN SMITH JR CHRYSLER CORP CHAIRMAN BOB EATON AND FORD MOTOR CORP CHAIRMAN HAROLD POLING GAVE A DETAILED PRESENTATION ON THE STATE OF THE US AUTO INDUSTRY AND ON THE IMPORTANCE OF A STRONG ECONOMY TO AUTO AND TRUCK SALES ACCORDING TO OFFICIALS WHO ATTENDED THE TWOHOUR MEETING ONE GOVERNMENT OFFICIAL DESCRIBED IT AS A GENERALLY UPBEAT REPORT A GOVERNMENT OFFICIAL SAID HOWEVER NO POLICY DECISIONS WERE MADE OR ASKED FOR NO PROMISES AFTER THE MEETING MR EATON CALLED THE SESSION PART OF A LARGER DIALOGUE ANOTHER OFFICIAL SAID THE GOVERNMENT HAS BEEN VERY OPEN AMONG OTHER THINGS THE AUTO EXECUTIVES QUESTIONED THE NEED FOR TIGHTER FUELECONOMY STANDARDS AND THE COSTEFFECTIVENESS OF FURTHER EXHAUSTEMISSIONS CUTS THE COMPETITIVE CHALLENGE FROM JAPANESE AUTO MAKERS WAS ALSO DISCUSSED AT LENGTH OFFICIALS SAID THE BIG THREE EXECUTIVES EXPRESSED FEARS THAT BECAUSE OF THE JAPANESE ECONOMIC SLUMP THEIR RIVALS MAY RESORT TO DUMPING CARS AND TRUCKS AT UNFAIRLY LOW PRICES IN OVERSEAS MARKETS INCLUDING THE US A FORD SPOKESMAN SAID THE CHRONIC TRADE DEFICIT WITH JAPAN WAS HIGH ON THE AGENDA AND AUTO OFFICIALS REPORTED ANEW ON HOW HARD IT IS TO PENETRATE THE HIGHLY PROTECTED JAPANESE VEHICLE MARKET THEY ALSO VOICED SUPPORT FOR THE ADMINISTRATION'S MOREMUSCULAR TRADE PLAN TO PROD THE JAPANESE TO BUY MORE USMADE AUTOS AND AUTO PARTS ON HEALTH CARE THE BIG THREE URGED THE ADMINISTRATION TO ADOPT POLICIES THAT WOULD EASE THE BURDEN OF MEDICAL BENEFITS FOR RETIREES IN OLDLINE INDUSTRIES WHICH ARE LOATH TO FIGHT THEIR BIG UNIONS TO REDUCE HISTORICALLY GENEROUS MEDICAL BENEFITS THE CAR MAKERS ALSO RAISED CONCERNS ABOUT HOW PENSION BENEFITS AFFECT LABOR COSTS AND PROFITS FOR THEIR PART ADMINISTRATION OFFICIALS REPEATEDLY SPOKE OF THEIR DESIRE TO HELP DETROIT COMMERCE SECRETARY RON BROWN'S PITCH WAS WE WANT TO WORK WITH YOU TO MAKE SURE WE HAVE A PROSPEROUS AND COMPETITIVE AUTO INDUSTRY ONE OFFICIAL SAID OTHER PARTICIPANTS INCLUDED DEPUTY COMMERCE SECRETARY JOHN ROLLWAGEN CHIEF WHITE HOUSE ECONOMIST LAURA TYSON AND OTHER HIGHRANKING OFFICIALS FROM THROUGHOUT THE ADMINISTRATION LABOR SECRETARY ROBERT REICH WAS ONE OF THE MOST ACTIVE PARTICIPANTS ASKING WHETHER THERE IS A CORRELATION BETWEEN RISING SALES AND GROWING LABORMANAGEMENT COOPERATION AT ASSEMBLY PLANTS ACCORDING TO PARTICIPANTS THE AUTO EXECUTIVES STRENUOUSLY DENIED ANY SUCH CORRELATION SAYING SALES GAINS REFLECTED THE LAUNCHING OF HIGHERQUALITY BETTERSTYLED VEHICLES AND THE GROWING STRENGTH OF THE YEN AGAINST THE DOLLAR WHICH THEY SAID MAKE JAPANESE IMPORTS MORE EXPENSIVE MR REICH HAS OFTEN CITED ASSEMBLYPLANT OPERATIONS AT FORD CHRYSLER AND GM'S SATURN AS MODELS OF HOW US LABORMANAGEMENT SHOULD WORK IN A JOINT STATEMENT THE THREE US AUTO COMPANY CHAIRMEN SAID THEY URGED GOVERNMENT LEADERS TO MOVE FORWARD ON A FULL RANGE OF ISSUES VITAL TO THE SUCCESS OF THE DOMESTIC AUTO INDUSTRY SURPRISINGLY PARTICIPANTS SAID THE BIG THREE DIDN'T DWELL ON THEIR CONTROVERSIAL REQUEST THAT THE ADMINISTRATION RAISE THE TARIFFS ON IMPORTED MINIVANS AND SPORTUTILITY VEHICLES TO 25 FROM 25 PRESIDENT CLINTON SIDED WITH DETROIT ON THAT ISSUE DURING THE ELECTION CAMPAIGN AND REITERATED THAT SUPPORT AFTER TAKING OFFICE AN AUTO OFFICIAL SAID MINIVANS AND SPORTUTILITY VEHICLES WERE DISCUSSED ONLY AS A GROWING MARKET TREASURY SECRETARY LLOYD BENTSEN WHO DIDN'T ATTEND THE MEETING TOLD A GROUP OF REPORTERS YESTERDAY THAT THE MINIVAN ISSUE IS STILL UNDER STUDY AND HINTED THAT NO QUICK ANNOUNCEMENT IS LIKELY I'M IN NO HURRY ON IT HE SAID JAPANESE AUTO MAKERS YESTERDAY TOOK THE OPPORTUNITY TO RELEASE AN APRIL 21 LETTER TO MR BENTSEN SAYING THAT A HIGHER TARIFF WOULD POTENTIALLY DISRUPT BOTH THE CURRENT AND FUTURE WORLD TRADING SYSTEMS JAPAN HAS THREATENED TO FIGHT A 25 TARIFF AS A VIOLATION OF TRADING RULES SET UP BY THE GENERAL AGREEMENT ON TARIFFS AND TRADE A GENEVABASED WORLD TRADE BODY JOSEPH B WHITE IN DETROIT CONTRIBUTED TO THIS ARTICLE 9304290128 930429 WORLD MARKETS TOKYO SHARES SURGE ON US CURRENCY ACTION LONDON PRICES HIT BY PLUNGE IN FUTURES MARKET A WALL STREET JOURNAL NEWS ROUNDUP TOKYO SHARES CLIMBED 12 WEDNESDAY AHEAD OF A STRING OF HOLIDAYS ON BUYING BY JAPANESE AND OVERSEAS INVESTORS AFTER THE US INTERVENED A DAY EARLIER TO REIN IN THE YEN'S RISE AGAINST THE DOLLAR BUT IN LONDON STOCKS SANK 12 AS THE FUTURES MARKET FELL AND DRAGGED EQUITIES DOWN MEANWHILE MEXICO CITY'S MAIN INDEX PLUMMETED 33 AS THE MARKET REACTED TO DISAPPOINTING EARNINGS BY TELEFONOS DE MEXICO AND RENEWED JITTERS ABOUT PROSPECTS FOR THE NORTH AMERICAN FREE TRADE AGREEMENT WORLDWIDE STOCK PRICES GAINED IN DOLLAR TERMS THE DOW JONES WORLD STOCKS INDEX WAS AT 10451 UP 022 OIL DRILLING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 11872 UP 465 OR 41 AND LED BY TEIKOKU OIL OF JAPAN WHICH POSTED A 9 RISE IN LOCAL CURRENCY TERMS MEDICAL SUPPLIERS TRAILED THE INDUSTRY GROUPS AT 8258 DOWN 128 OR 15 WITH ABBOTT LABS OF THE US SLIDING 27 IN LOCAL CURRENCY TERMS PRICES SHOT UP AT THE OPENING WITH THE YEN SLACKENED IN CURRENCY MARKETS FOLLOWING INTERVENTION IN NORTH AMERICAN ACTIVITY TUESDAY BY THE FEDERAL RESERVE ON BEHALF OF THE DOLLAR JAPANESE EXPORTORIENTED STOCKS ESPECIALLY IN THE HIGHTECHNOLOGY SECTOR WERE AMONG THE MAIN GAINERS TOKYO SHARES NONETHELESS ENDED BELOW THEIR SESSION HIGHS AFTER SOME INVESTORS SEIZED ON A NEWS REPORT OF HEIGHTENED NORTH KOREACHINA TENSIONS AND TOOK PROFITS IN THE AFTERNOON MANY INDIVIDUAL INVESTORS JOINED THE PROFITTAKING WAVE BEFORE LEAVING ON VACATION THE EXCHANGE IS CLOSED THURSDAY FOR GREENERY DAY IT ALSO WILL BE SHUT MONDAY THROUGH WEDNESDAY FOR JAPANESE HOLIDAYS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX TUMBLED 354 POINTS TO 27973 THE FT 30STOCK INDEX LOST 157 POINTS TO 22084 VOLUME WAS 6991 MILLION SHARES COMPARED WITH 5966 MILLION SHARES A DAY EARLIER THE BOTTOM FELL OUT OF THE STOCK FUTURES MARKET ON AGGRESSIVE SELLING BY US FUNDS REPORTEDLY FOLLOWING THE LEAD OF THE INVESTOR AND FINANCIER GEORGE SOROS THE FUTURES MARKET'S RETREAT CAME AT MIDDAY JUST AS THE US TRADING SESSION BEGAN THE LONDON STOCK MARKET WAS GRIPPED BY SPECULATION THAT MR SOROS AFTER BUYING GOLD AGGRESSIVELY FRIDAY WAS SELLING EUROPEAN STOCKS SHORT ON THE BELIEF THAT LARGESCALE WAR WOULD ERUPT IN THE BALKANS GOLD TYPICALLY RISES DURING AN INTERNATIONAL CRISIS SUCH AS WAR WHILE STOCK MARKETS HAVE GENERALLY TANKED A SHORT SALE IS A BET THAT THE STOCK WILL DECLINE IN MEXICO CITY THE BOLSA INDEX SANK 5561 POINTS TO 163888 INVESTORS WERE ALREADY RATTLED BY US BUDGET DIRECTOR LEON PANETTA'S COMMENT MONDAY THAT THE NORTH AMERICAN FREE TRADE AGREEMENT WOULD BE DEAD IF PRESENTED TO CONGRESS NOW THEN YESTERDAY TELEFONOS DE MEXICO THE PHONE MONOPOLY THAT ACCOUNTS FOR ABOUT 30 OF THE MARKET'S VOLUME POSTED A 43 DECLINE IN FIRSTQUARTER PROFIT SURPRISING INVESTORS TELMEX CLASS L SHARES THOSE AVAILABLE TO FOREIGN INVESTORS PLUMMETED 50 CENTAVOS OR 63 TO 745 NEW PESOS 241 AND AMERICAN DEPOSITARY SHARES TUMBLED 375 OR 73 TO 4750 THOUGH INCREASES IN TELMEX'S REVENUE AND OPERATING INCOME CAME IN BELOW EXPECTATIONS SOME ANALYSTS WERE STILL BULLISH ON THE STOCK CITING ITS HUGE GROWTH PROSPECTS STILL ANXIETY INCREASED ABOUT A MIDYEAR MARKET SWOON SUCH AS THE ONE LAST YEAR ALSO PRECIPITATED BY WORRIES ABOUT TELMEX AND NAFTA AND THE MARKET LOST 35 OF ITS VALUE FROM JUNE THROUGH SEPTEMBER YET SOME FACTORS IN THAT PLUNGE HAVE DISAPPEARED FOR EXAMPLE INTEREST RATES ARE LOWER AND INVESTORS DON'T FACE A GLUT OF NEW STOCK ISSUES IN FRANKFURT STOCK PRICES FELL ON DAMPED HOPES FOR INTERESTRATE CUTS THE DAX 30STOCK INDEX DROPPED 1191 POINTS TO 162887 AFTER THE GERMAN CENTRAL BANK'S RATE ON SECURITIES REPURCHASE AGREEMENTS SLIPPED SHARPLY IN THE MORNING WHILE AN EASING IS ORDINARILY GOOD NEWS FOR THE MARKET YESTERDAY'S STEEP DECLINE ERASED MANY INVESTORS' HOPES FOR REDUCTIONS IN MAJOR OFFICIAL LENDING RATES A SCENARIO THAT HAS SUPPORTED SHARES IN RECENT WEEKS SOME INVESTORS INTERPRETED THE DROP IN REPO RATES AS A SIGN THAT THE BUNDESBANK WILL POSTPONE FURTHER CUTS IN OFFICIAL RATES THE CUT ALSO PROMPTED PROFITTAKING AND THE RATE FOCUS OVERSHADOWED CORPORATE NEWS IN PARIS SHARES REBOUNDED FROM NEGATIVE TERRITORY TO SCORE GAINS HELPED BY CUTS IN INTEREST RATES IN GERMANY BELGIUM AND THE NETHERLANDS IN AMSTERDAM EARLY LOSSES WERE OVERCOME BY THE DUTCH RATE REDUCTIONS AND EQUITY PRICES FINISHED MIXED MILAN STOCKS STAGED A LATE RECOVERY THOUGH THIS WAS INSUFFICIENT TO RECOVER EARLIER LOSSES FROM A CONSOLIDATION IN REACTION TO THE PREVIOUS DAY'S SHARP GAINS STOCKHOLM PRICES CLOSED HIGHER ACROSS THE BOARD IN HEAVY TRADING SUPPORTED BY DECLINING SWEDISH INTEREST RATES ZURICH SHARES ROSE IN A TECHNICAL REBOUND AND ON RENEWED CONFIDENCE IN THE PHARMACEUTICAL AND BANKING SECTORS IN BRUSSELS WHERE THE RATE CUT CAME AT THE CLOSE OF TRADING STOCK PRICES ENDED MIXED SYDNEY SHARES RETREATED TAKING GOLD STOCKS DOWN AFTER THEIR RECENT SHARP ADVANCES PRICES DIDN'T MOVE SIGNIFICANTLY ON NEWS THAT AUSTRALIA'S INFLATION RATE ROSE TO 12 IN THE FIRST QUARTER FROM 03 IN THE FOURTH QUARTER IN HONG KONG STOCKS RACED TO A RECORD HIGH AS A SECOND SINOBRITISH MEETING ON THE COLONY'S FUTURE GOVERNANCE GOT UNDER WAY IN BEIJING MARKET PARTICIPANTS WERE CONFIDENT AN AGREEMENT EVENTUALLY WILL BE REACHED MENDING RELATIONS BETWEEN BRITAIN AND CHINA EQUITIES IN TAIPEI AND SEOUL ROSE IN REBOUNDS AFTER FOUR SESSIONS OF DECLINES ON EACH EXCHANGE MANILA SHARES GAINED HELPED BY BARGAINHUNTING IN CHINA NEWS THAT US INVESTORS MAY TRADE IN CHINA'S STOCK MARKETS LIFTED ACTIVITY SLIGHTLY THOUGH PRICES ENDED LITTLE CHANGED CLASS B SHARES THOSE RESERVED FOR OVERSEAS INVESTORS ROSE MARGINALLY IN SHENZHEN BUT SLIPPED IN SHANGHAI WHILE US FUNDS ARE EXPECTED INITIALLY TO MOVE CAUTIOUSLY INTO CHINA ANALYSTS SAID THE OPENING WILL HELP BOOST CHINESE EXCHANGES IN THE LONG TERM AMONG CORPORATE DEVELOPMENTS IN FRANKFURT BAYER ROSE 110 MARKS TO 27140 MARKS 17177 THE CHEMICAL COMPANY'S FIRSTQUARTER PRETAX PROFIT DROPPED 21 TO 640 MILLION MARKS 4051 MILLION FROM A YEAR EARLIER BAYER ATTRIBUTED THE DROP PRIMARILY TO ITS BUSINESS IN EUROPE IT SAID THAT IT DIDN'T EXPECT THE ECONOMIC ENVIRONMENT TO IMPROVE IN THE CURRENT QUARTER AND THAT WEAK DEMAND AND PRICES WOULD CONTINUE TO PRESSURE THE COMPANY'S RESULTS 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 9304290127 930429 DIVIDEND NEWS TRUSTCOMPANY BANCORP TRUSTCOMPANY BANCORP JERSEY CITY NJ DECLARED A 2FOR1 STOCK SPLIT EFFECTIVE JUNE 18 TO SHARES OF RECORD MAY 14 THE COMPANY PREVIOUSLY SPLIT ITS STOCK 2FOR1 IN 1990 9304290126 930429 WHO'S NEWS LOCKHEED CORP LOCKHEED CORP CALABASAS CALIF JAMES A BLACKWELL 52 YEARS OLD WAS ELECTED A CORPORATE VICE PRESIDENT AND PRESIDENT OF LOCKHEED AERONAUTICAL SYSTEMS CO A MARIETTA GA SUBSIDIARY HE SUCCEEDS KENNETH W CANNESTRA 62 WHO CONTINUES AS PRESIDENT OF THE AERONAUTICAL SYSTEMS GROUP OF WHICH LOCKHEED AERONAUTICAL SYSTEMS CO IS A SEGMENT MR BLACKWELL PREVIOUSLY WAS VICE PRESIDENT AND GENERAL MANAGER FOR THE F22 ADVANCED TACTICAL FIGHTER PROGRAM WITH THE UNIT LOCKHEED IS A MILITARY AEROSPACE AND ELECTRONICS CONCERN 9304290125 930429 THREE MEN SENTENCED IN INSIDERTRADING CASE TIED TO PARISIAN BUYOUT BOSTON THREE NEW YORK CITY MEN WERE EACH SENTENCED TO A YEAR'S PROBATION IN FEDERAL COURT HERE FOR USING INSIDERTRADING INFORMATION TO PURCHASE SHARES IN PARISIAN INC PRIOR TO A PLANNED LEVERAGE BUYOUT OF THE APPAREL COMPANY IN 1988 THE MEN ERIC LABOZ ALBERT LABOZ AND JASON LABOZ PLEADED GUILTY IN AUGUST TO TRADING ON INFORMATION OBTAINED FROM KERRY HURTON A FORMER PARALEGAL AT SKADDEN ARPS SLATE MEAGHER & FLOM THE MEN RECEIVED A TOTAL OF MORE THAN 100000 IN PROFITS MS HURTON WHO PROVIDED THE INFORMATION IN EXCHANGE FOR FINANCING ON A BOSTON CONDOMINIUM HAS PLEADED GUILTY TO FALSIFYING LOAN APPLICATION DOCUMENTS AND IS AWAITING SENTENCING 9304290124 930429 WHO'S NEWS ESYSTEMS CHAIRMAN SAYS HE HAS HEALTH PROBLEM DALLAS ESYSTEMS INC CHAIRMAN E GENE KEIFFER CONFIRMED RECENT REPORTS THAT HIS HEALTH IS SUFFERING BUT HE INSISTED THAT HE HAS NO PLANS TO LEAVE THE DEFENSE ELECTRONICS COMPANY SPEAKING WITH REPORTERS AFTER THE ANNUAL MEETING THE 63YEAROLD MR KEIFFER DECLINED TO DISCLOSE HIS AILMENT EXCEPT TO SAY THAT IT ISN'T LIFETHREATENING AND HASN'T YET BEEN FULLY DIAGNOSED BY DOCTORS ANALYSTS BRIEFED BY ESYSTEMS IN RECENT DAYS SAY THEY HAVE BEEN TOLD THAT MR KEIFFER HAS BEEN DIAGNOSED WITH CANCER AS HAS EATON ADAMS JR THE COMPANY'S 62YEAROLD VICE PRESIDENT OF STRATEGIC PLANNING AND DEVELOPMENT AN ESYSTEMS SPOKESMAN CONFIRMED THE DIAGNOSIS OF MR ADAMS BUT DECLINED TO COMMENT FURTHER ON MR KEIFFER'S HEALTH STATUS OR HIS OUTLOOK FOR RECOVERY MR KEIFFER'S HEALTH PROBLEMS WERE FIRST RAISED PUBLICLY IN AN ARTICLE YESTERDAY IN THE DALLAS MORNING NEWS MR KEIFFER SAID HE HAD BRIEFED THE COMPANY'S BOARD ON HIS HEALTH PROBLEMS AND RECEIVED THE GROUP'S 1000 PERCENT SUPPORT I HAVE NO INTENTION OF RESIGNING AS CHAIRMAN FOR MEDICAL OR ANY REASONS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE ESYSTEMS SHARES CLOSED AT 40375 DOWN 25 CENTS 9304290123 930429 DIVIDEND NEWS SIGNET BANKING CORP SIGNET BANKING CORP INCREASED ITS QUARTERLY DIVIDEND 33 TO 40 A CENTS A SHARE FROM 30 CENTS PAYABLE MAY 26 TO SHARES OF RECORD MAY 10 THE RICHMOND VA REGIONAL BANKING COMPANY HAS ABOUT 281 MILLION SHARES OUTSTANDING THE COMPANY SIX MONTHS EARLIER HAD RAISED ITS DIVIDEND 50 SIGNET HAS ABOUT 115 BILLION IN ASSETS 9304290122 930429 WHO'S NEWS ENHANCE FINANCIAL SERVICES GROUP INC ENHANCE FINANCIAL SERVICES GROUP INC NEW YORK THIS MUNICIPAL BOND AND SPECIALTY REINSURANCE CONCERN NAMED I VAL GOLDSTEIN 40 YEARS OLD TO THE NEW POST OF SENIOR VICE PRESIDENT OF THE GROUP AND TWO OF ITS WHOLLY OWNED UNITS ENHANCE REINSURANCE CO AND ASSET GUARANTY INSURANCE CO MOST RECENTLY HE WAS VICE PRESIDENT OF MEMBER INSURANCE COMPANIES OF NEW YORKBASED AMERICAN INTERNATIONAL GROUP INC A MULTILINE INSURANCE COMPANY 9304290121 930429 WHO'S NEWS ARTHUR ANDERSEN ELECTION CHICAGO ARTHUR ANDERSEN & CO ONE OF THE WORLD'S LARGEST ACCOUNTING AND CONSULTING ORGANIZATIONS SAID LAWRENCE A WEINBACH WAS ELECTED TO A SECOND FOURYEAR TERM AS MANAGING PARTNER AND CHIEF EXECUTIVE OFFICER MR WEINBACH 53 YEARS OLD WAS ELECTED IN A VOTE OF ABOUT 2500 OF THE FIRM'S PARTNERS WORLDWIDE THE NEW TERM IS EFFECTIVE SEPT 1 IN THE PAST FOUR YEARS ANDERSEN'S ANNUAL WORLDWIDE REVENUE NEARLY DOUBLED TO 56 BILLION AND REVENUE FROM ITS US PRACTICE ROSE 57 TO NEARLY 27 BILLION CONSULTING REVENUE GREW 89 IN THAT PERIOD REFLECTING THE STRENGTH OF THAT SIDE OF PROFESSIONAL SERVICES ACCOUNTING REVENUE BY COMPARISON GREW 38 IN THE FOURYEAR PERIOD 9304290120 930429 INTERNATIONAL WESTERN GERMAN ORDERS FALL FRANKFURT ORDER INFLOWS TO THE WESTERN GERMAN MACHINERY AND PLANTBUILDING INDUSTRY FELL 12 ADJUSTED FOR INFLATION IN MARCH FROM A YEAR EARLIER THE VDMA INDUSTRY ASSOCIATION REPORTED DOMESTIC ORDERS FELL 19 IN THE PERIOD WHILE FOREIGN ORDERS DECLINED BY 5 THE ASSOCIATION SAID IN THE FIRST QUARTER OF 1993 ORDERS FELL 14 COMPARED WITH A YEAR EARLIER VDMA SAID FOREIGN ORDERS FELL 6 AND DOMESTIC ORDERS DROPPED 21 IN THE FIRST QUARTER THE GROUP SAID 9304290119 930429 WHO'S NEWS TREDEGAR INDUSTRIES INC TREDEGAR INDUSTRIES INC RICHMOND VA STEPHEN S ANDERSEN 40 YEARS OLD WAS NAMED PRESIDENT OF KENNEDY & CO A COMPUTER SOFTWARE AND CONSULTING UNIT EFFECTIVE MAY 1 HE SUCCEEDS THOMAS R KENNEDY 43 WHO RELINQUISHED THE POST IN DECEMBER WHEN TREDEGAR ACQUIRED THE COMPANY MR KENNEDY IS NOW VICE PRESIDENT PRODUCTS STRATEGY MR ANDERSEN MOST RECENTLY WAS PRESIDENT OF PROCESS 2000 A UNIT OF ATLANTABASED SOFTWARE 2000 INC A COMPUTER SOFTWARE PRODUCTS FIRM TREDEGAR MAKES PLASTICS AND METAL PRODUCTS 9304290118 930429 AMERICA WEST SLICES 30 FROM SUMMER AIR FARES AMERICA WEST AIRLINES INTRODUCED A 30 CUT ON FARES FOR SUMMER TRAVEL BUT MOST CARRIERS RESPONDED SO CAUTIOUSLY THAT IT'S UNLIKELY TO SPREAD INTO THE KIND OF DEEP DISCOUNTS THE INDUSTRY SAW LAST YEAR THE PHOENIXBASED CARRIER OFFERED REDUCTIONS ON LEISURE FARES FOR FLYERS TRAVELING THROUGH SEPT 7 BUT THE TICKETS MUST BE PURCHASED BY MAY 19 AND REQUIRE A SATURDAY NIGHT STAY MOST AIRLINES WERE MATCHING AMERICA WEST'S MOVE BUT ONLY ON ROUTES WHERE THEY DIRECTLY COMPETE THE THIRDLARGEST CARRIER DELTA AIR LINES SAID IT WOULD STUDY THE MOVE THAT MEANS THE SALE THUS FAR IS LIMITED TO AMERICA WEST'S ROUTE SYSTEM WHICH COVERS ONLY PART OF THE COUNTRY I THINK THE AIRLINES LEARNED THEIR LESSON LAST YEAR SAID A SPOKESMAN FOR NORTHWEST AIRLINES A UNIT OF WINGS HOLDINGS INC REFERRING TO THE WIDERANGING STEEP CUTS THAT COST THE INDUSTRY HUNDREDS OF MILLIONS OF DOLLARS LAST SUMMER AMERICA WEST ALSO LAUNCHED A FRIENDS FLY FREE PROMOTION FROM ATLANTA TO CALIFORNIA NEVADA AND ARIZONA WITH MOST OF THE SAME RESTRICTIONS AS ITS SUMMER SALE CONTINENTAL AIRLINES AND NORTHWEST MATCHED THE MOVE SEPARATELY MAJOR AIRLINES EXTENDED UNTIL TOMORROW THE 30OFF SPRING FARES THEY'D BEEN OFFERING FOR LEISURE TRAVEL THROUGH JUNE 30 THIS IS THE SECOND EXTENSION FOR THE DISCOUNT FARES 9304290117 930429 WORLD'S DEPENDENCE ON OIL FROM MIDEAST MAY SURGE PARIS THE WORLD'S DEPENDENCE ON OPEC AND MIDDLE EAST OIL LOOKS LIKE IT'S GOING TO GROW DRASTICALLY EVEN IF PRICES RISE SHARPLY THE INTERNATIONAL ENERGY AGENCY SAID YESTERDAY THAT OIL OUTPUT IN MEMBER COUNTRIES OF THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT IS EXPECTED TO CONTINUE DECLINING THIS DECADE AND THE NEXT PARTICULARLY IN THE US DURING THIS TIME PETROLEUM USE IS EXPECTED TO SURGE AND OECD COUNTRIES MAY END UP IMPORTING 40 MORE OIL THIS WOULD RAISE THEIR IMPORT DEPENDENCE TO 70 OR MORE OF THEIR OIL NEEDS BY 2010 COMPARED WITH ABOUT 58 NOW MEANWHILE DEMAND FOR OIL IN THE REST OF THE WORLD IS SEEN RISING EVEN FASTER THAN IN THE 24 OECD COUNTRIES WITH OIL USE DOUBLING IN THE YEARS TO 2010 THIS LARGE APPETITE FOR OIL CAN ONLY BE SATISFIED BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES AND SOME COUNTRIES OF THE MIDDLE EAST THAT AREN'T MEMBERS OF THE EXPORTERS' GROUP ACCORDING TO THE IEA MIDDLE EASTERN EXPORTERS EXCLUDING NORTH AFRICAN NATIONS SUCH AS LIBYA AND EGYPT AND VENEZUELA CURRENTLY MEET ABOUT 30 OF THE WORLD'S OIL NEEDS THE IEA SAID THEY MAY ACCOUNT FOR ABOUT 50 OF THE WORLD SUPPLY BY 2010 LOOKED AT ANOTHER WAY THE IEA SAID DEMAND FOR OIL FROM THE 12 MEMBERS OF OPEC IS EXPECTED TO DOUBLE BY 2010 THE AGENCY'S MEMBERS ARE THE OECD COUNTRIES NOT INCLUDING ICELAND 9304290116 930429 WHO'S NEWS DOLE FOOD CO DOLE FOOD CO WESTLAKE VILLAGE CALIF ELAINE L CHAO WAS ELECTED A DIRECTOR INCREASING THE BOARD TO SEVEN MEMBERS MS CHAO 39 YEARS OLD IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF UNITED WAY OF AMERICA BASED IN ALEXANDRIA VA DOLE FOOD IS A HOLDING COMPANY WITH INTERESTS IN FOOD PRODUCTION AND DISTRIBUTION REALESTATE DEVELOPMENT AND RESORTS 9304290115 930429 WHO'S NEWS ONE VALLEY BANCORP OF WEST VIRGINIA INC ONE VALLEY BANCORP OF WEST VIRGINIA INC CHARLESTON WVA THIS BANK HOLDING COMPANY NAMED FOUR NEW DIRECTORS SUCCEEDING FOUR WHO RETIRED THE NEW DIRECTORS ARE PHYLLIS HUFF ARNOLD 44 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OF ONE VALLEY BANK THE HOLDING COMPANY'S FLAGSHIP BANK JAMES GABRIEL 62 PRESIDENT OF GABRIEL BROTHERS INC OF MORGANTOWN WVA A CHAIN OF DISCOUNT RETAIL STORES DAVID E LOWE 51 PRESIDENT AND CHIEF EXECUTIVE OF CHESAPEAKE AND POTOMAC TELEPHONE CO OF WEST VIRGINIA A UNIT OF BELL ATLANTIC CO AND JOHN H WICK III 46 VICE PRESIDENT OF DICKINSON FUEL CO ALSO BASED IN CHARLESTON RETIRING ARE MARY PRICE RATRIE JAMES F BROWN III JAMES R MCCARTNEY AND DAVID E BERRY 9304290114 930429 WHO'S NEWS BLACK & DECKER CORP BLACK & DECKER CORP TOWSON MD M CABELL WOODWARD JR 64 YEARS OLD WAS ELECTED A DIRECTOR INCREASING THE SIZE OF THE COMPANY'S BOARD TO 10 MR WOODWARD RETIRED IN FEBRUARY AS VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER OF NEW YORKBASED ITT CORP THE INDUSTRIAL AND FINANCIAL SERVICES CONGLOMERATE BLACK & DECKER IS A MANUFACTURER OF POWER TOOLS AND HOUSEHOLD APPLIANCES 9304290113 930429 WHO'S NEWS NORTH CANADIAN OILS LTD NORTH CANADIAN OILS LTD CALGARY ALBERTA THIS OIL AND GAS COMPANY SAID ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER NORMAN GISH WILL RESIGN EFFECTIVE JUNE 30 MR GISH 57 YEARS OLD WILL PROVIDE CONSULTING SERVICES TO NORTH CANADIAN AND NORCEN ENERGY RESOURCES LTD FROM JULY 1 AS PREVIOUSLY REPORTED NORCEN AND NORTH CANADIAN PLAN TO MERGE THEIR OPERATIONS AND STAFF EFFECTIVE JULY 1 A MOVE THAT NORTH CANADIAN SAID WILL MAKE MR GISH'S POSITION REDUNDANT 9304290112 930429 MONTANA POWER TO LIFT CAPACITY BUTTE MONT MONTANA POWER CO SAID IT PLANS TO SPEND 515 MILLION TO EXPAND THE CAPACITY OF ITS HYDROELECTRIC PROJECT AT THOMPSON FALLS MONT ON THE COLUMBIA RIVER BY 50 MEGAWATTS THE UTILITY SAID A JOINT VENTURE BETWEEN BOSTON ARCHITECTURE FIRM STONE & WEBSTER AND THE OMAHA NEB CONSTRUCTION FIRM KIEWIT CO WILL BUILD A 28 MILLION POWERHOUSE AND FACILITIES KVAERNER OF SWEDEN WILL SUPPLY A 153 MILLION SINGLE TURBINE GENERATOR 9304290111 930429 INTERNATIONAL JAPANESE PC SHIPMENTS ROSE 62 BY UNITS IN MOST RECENT PERIOD SPECIAL TO THE WALL STREET JOURNAL TOKYO SHIPMENTS OF JAPANESE PERSONAL COMPUTERS JUMPED 62 IN UNIT TERMS DURING THE JANUARYMARCH QUARTER FROM A YEAR EARLIER INDICATING A RECOVERY IN THE SLUGGISH MARKET THE JAPAN ELECTRONIC INDUSTRY DEVELOPMENT ASSOCIATION SAID THE RISE IN COMBINED EXPORTS AND DOMESTIC SALES TO 688000 UNITS FROM 648000 UNITS A YEAR AGO MARKED THE FIRST QUARTERLY EXPANSION IN TWO YEARS OF THAT FIGURE EXPORTS ROCKETED 31 TO 144000 UNITS FROM 110000 UNITS WHILE DOMESTIC SHIPMENTS INCHED UP 11 TO 544000 UNITS FROM 538000 UNITS THE DOMESTIC COMPONENT MARKED ITS FIRST QUARTERLY INCREASE IN 2 1/2 YEARS THE ASSOCIATION SAID USERS IN JAPAN AND OVERSEAS MOVED TO BUY PCS ASSUMING THAT PRICES HAVE BOTTOMED OUT AS A RESULT OF THE RECENT PRICE WARS PRICE COMPETITION ATE INTO RETURNS WITH COMBINED EXPORT AND DOMESTIC SHIPMENTS OF MADEINJAPAN PCS WHEN MEASURED IN CURRENCY TERMS OFF 83 IN THE QUARTER TO 3019 BILLION YEN 27 BILLION FROM 3291 BILLION YEN BREAKING IT DOWN EXPORTS WERE DOWN 82 TO 69 BILLION YEN FROM 752 BILLION YEN WHILE DOMESTIC SALES FELL 83 TO 2329 BILLION YEN FROM 2539 BILLION YEN 9304290110 930429 LETTERS TO THE EDITOR WE NEVER SAID IT YOU QUOTED FROM THE DECEMBER ISSUE OF HETERODOXY NOTABLE & QUOTABLE EDITORIAL PAGE JAN 12 IN WHICH THE WELLESLEY COLLEGE WOMEN'S STUDIES DEPARTMENT WAS CHARGED WITH SENDING LETTERS TO STUDENTS CRITICIZING THEIR CHOICE OF A HISTORY MAJOR AND PERPETUATING DOMINANT WHITE MALE' ATTITUDES THIS WAS A TOTAL FALSEHOOD HETERODOXY MEANWHILE HAS PRINTED A RETRACTION OF THIS STATEMENT 9304290109 930429 NOVICES FLUSTERED AS OMENS AUGUR DOLLAR CATACLYSM BY ROBERT L BARTLEY AS THE WORLD'S FINANCE MINISTERS AND CENTRAL BANKERS GATHER FOR THEIR SPRING SABBAT IN WASHINGTON TODAY THE OMENS FOREBODE IN EUROPE 1993 ONCE BILLED AS A NEW ERA'S START NOW LOOKS LIKE ITS END JAPAN IS HOLDING ITS FINANCIAL SYSTEM TOGETHER WITH BAMBOO BINDERS AS IT LEARNS ABOUT RECESSION AND AS THE DOLLAR HIT A NEW POSTWAR LOW AGAINST THE YEN THE ROOKIE US ADMINISTRATION TRIED TO EXPLAIN AWAY SOME MISPERCEPTIONS THAT IT HAS BEEN TRYING TO TALK DOWN ITS CURRENCY NOT ONLY DID TREASURY SECRETARY LLOYD BENTSEN COME OUT AGAINST MISPERCEPTIONS AND EXCESSIVE VOLATILITY AT A SENATE HEARING TUESDAY BUT THE TREASURY INTERVENED TO SUPPORT THE DOLLAR IN FOREIGNEXCHANGE MARKETS MR BENTSEN PLEDGED TO COOPERATE IN THE EXCHANGE MARKETS WITH THE G7 COUNTRIES THAT CONVENE TODAY AT THE START OF THE IMFWORLD BANK MEETINGS THE CLINTON ADMINISTRATION'S EDUCATION IN INTERNATIONAL FINANCE HAS STARTED IN EARNEST ABOUT TIME FOR UNTIL TUESDAY IT DISPLAYED NO POLICY AND NO CLUE TO THE DANGERS WITH WHICH IT TOYS WHAT IS THE SOURCE AFTER ALL OF THE MISPERCEPTION THAT THE CLINTON ADMINISTRATION WANTS A HIGHER YEN AND LOWER DOLLAR ONLY THE UTTERANCES OF ITS TREASURY SECRETARY PRESIDENT AND COMMERCE SECRETARY TRACED IN THE ACCOMPANYING CHART SEE ACCOMPANYING ILLUSTRATION WSJ APRIL 29 1993 WHILE THESE QUOTES WERE SURROUNDED AND FOLLOWED BY WEDON'TMEANIT STATEMENTS THE LOWDOLLAR NOTION KEEPS CROPPING UP COMMERCE SECRETARY RON BROWN MANAGED TO REPEAT IT EVEN IN THE MIDDLE OF A JAPANESE TOUR INTENDED TO SMOOTH OVER PRESIDENT CLINTON'S GAFFE EVEN A NOVICE FOREIGNEXCHANGE TRADER UNDERSTANDS THAT DENIALS ARE NOISE WHILE ANY HINT OF DEVALUATION MEANS SHORT THE DOLLAR EVEN SUPPOSEDLY FREEMARKET CONSERVATIVE ADMINISTRATIONS HAVE ENDED UP TRASHING THE DOLLAR AFTER ALL AND BIG BUSINESS COMPETING WITH FOREIGNERS LOVES IT AN INTELLECTUAL COTTAGE INDUSTRY ARGUES THAT A LOWER DOLLAR WILL RIGHT THE DREAD TRADE DEFICIT AT SOME POINT YOU'D THINK ECONOMISTS AND TREASURY SECRETARIES WOULD LOOK AT THE RESULTS IN 1985 WITH THE YEN AT 201 THE BILATERAL TRADE DEFICIT WITH JAPAN WAS 435 BILLION BY 1992 WE'D TALKED THE DOLLAR DOWN TO 127 YEN THUS REDUCING THE TRADE DEFICIT TO 494 BILLION HUNDREDS OF DEVALUATIONS BY OTHER NATIONS HAVE HAD SIMILAR EFFECTS HISTORY OFFERS FEW CLEARER LESSONS DEVALUATION DOESN'T CURE TRADE DEFICITS WHAT CURRENCY DEVALUATION DOES DO IS CAUSE INFLATION THE EARLY SIGNS ARE ALREADY APPEARING COMMODITY INDEXES HAVE SOARED PERHAPS INITIALLY DUE TO SPOTTED OWLS BIDDING UP LUMBER PRICES BUT THIS WEEK'S SUDDEN SPURT IN THE GOLD PRICE SUGGESTS A MONETARY EXPECTATIONAL PRICE SURGE THE FEDERAL RESERVE MAY BE FORCED TO TIGHTEN EVEN AS RECOVERY STALLS THANKS MOSTLY TO THE ADMINISTRATION'S LOOSE TALK EVEN MORE TO THE POINT AT THIS WEEK'S SABBAT THE DOLLAR REMAINS THE KEYSTONE OF THE WORLD'S MONETARY SYSTEM AS ECONOMISTS SAY THE RESERVE CURRENCY IT'S THE WORLD UNIT OF ACCOUNT ESSENTIAL TO FACILITATE TRADE AND IT'S THE WORLD'S STORE OF VALUE THE PREFERRED CURRENCY FOR LIQUID ASSETS IF A STORE OF VALUE STARTS TO LOOK SHAKY EVERYONE TRIES TO LIQUIDATE AT ONCE WITH A CONFUSED UNIT OF ACCOUNT TRADE FALTERS THE COLLAPSE OF A RESERVE CURRENCY CAN WRECK ECONOMIES THE WORLD OVER JAPAN TO TAKE THE LEAD EXAMPLE IS ALREADY IN TURMOIL OVER THE NEW ENDAKA OR SOARING YEN THE 1986 ENDAKA WAS TOLERABLE BECAUSE OF FAT JAPANESE PROFIT MARGINS BUT TODAY JAPAN HAS A PROBLEM HIGH FIXED INVESTMENT IN INDUSTRIES WITH WORLDWIDE OVERCAPACITY STARTING WITH AUTOS SO COMPANIES ARE LOSING MONEY AND WELSHING ON HEADY PROMISES LIKE LIFETIME EMPLOYMENT THANKS TO THE GOVERNMENT'S USE OF PENSION MONEY TO PROP UP STOCKS THE BANKS SURVIVED THEIR MARCH 31 RESERVE DECLINE BUT THEIR CREDIT RATINGS CONTINUE TO SLIP THE CLINTON FOLKS DON'T MIND BASHING JAPANESE OF COURSE BUT THERE IS THE LITTLE MATTER OF INTERDEPENDENCE RICHARD KOO OF NOMURA RESEARCH INSTITUTE NOTES THAT RESERVESTARVED JAPANESE FINANCIAL INSTITUTIONS HOLD SOME 230 BILLION IN DOLLARDENOMINATED ASSETS AS THE YEN FALLS PRESSURE TO LIQUIDATE BUILDS BELOW 120 THESE HOLDINGS SHOW BOOKKEEPING LOSSES AND AT SOME POINT WRITEOFF RULES KICK IN THE INSTITUTIONS RECOGNIZE THAT SELLING WILL DEPRESS THE DOLLAR FURTHER AND EXACERBATE LOSSES BUT ON THE OTHER HAND THE FIRST ONE OUT THE DOOR SURVIVES IT IS IN SHORT A RECIPE FOR A SELLER'S PANIC THE RESULTING TSUNAMI WOULD ENGULF ALL ECONOMIES THE AMERICAN ONE NOT LEAST HUGE BOND SALES WOULD SKYROCKET INTEREST RATES ESPECIALLY WITH THE FED TRYING TO STOP A DOLLAR FREE FALL AS THIS CHECKED EXPANSION INFLATION WOULD MOUNT AN INTERNATIONAL TRADE WAR WOULD SURELY FOLLOW ALONG WITH UNPREDICTABLE BUT SURELY UNPLEASANT TURNS IN INTERNATIONAL POLITICS THIS POSSIBILITY MAY SOUND REMOTE BUT ADEPTS UNDERSTAND THAT IT WAS AT HAND AS RECENTLY AS 1979 THE PRESENT OMENS MAY LOOK LIKE ONLY 1987 BUT THE MAGES NEED TO EXPLAIN TO CLINTON NOVICES THAT THEY ARE TOSSING RANDOM INGREDIENTS INTO A DANGEROUS CAULDRON 9304290108 930429 WHO'S NEWS FERRO CORP FERRO CORP CLEVELAND JAMES F FISHER 55 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT COATINGS COLORS AND CERAMICS MR FISHER FORMERLY WAS GROUP VICE PRESIDENT INTERNATIONAL ROBERT E PRICE 54 SUCCEEDS MR FISHER AS VICE PRESIDENT INTERNATIONAL MR PRICE PREVIOUSLY WAS REGIONAL MANAGING DIRECTOR ASIA/PACIFIC REGION FOR THIS MAKER OF CHEMICALS COLORS CERAMICS COATINGS AND PLASTICS RONALD L KLASSEN 47 WAS NAMED MANAGING DIRECTOR FAR EAST AREA HE FORMERLY WAS MANAGING DIRECTOR TAIWAN GARY H RITONDARO 46 WAS NAMED VICE PRESIDENT FINANCE HE PREVIOUSLY WAS VICE PRESIDENT AND CONTROLLER GARY G SISLAK 42 WAS TAPPED AS CORPORATE CONTROLLER HE FORMERLY WAS GROUP CONTROLLER CHEMICALS 9304290106 930429 REVIEW & OUTLOOK EDITORIAL ASIDES SPECIAL SURPRISES THE CLINTON WHITE HOUSE APPEARS TO BE DEBATING THIS WEEK WHETHER IT WILL ACCEPT A REALITY CHECK THE EMPIRICISTS AMONG THEM SHOULD CHECK OUT THE RECENT SPECIAL ELECTIONS IN WHICH PEOPLE ARE VOTING AGAINST DEMOCRATS THIS WEEK IN CALIFORNIA A STATE WHERE BILL CLINTON STOMPED GEORGE BUSH THREE ELECTIONS WERE HELD DEMOCRATS HELD A STATE ASSEMBLY SEAT IN FRESNO BUT THE GOP RAN 14 POINTS AHEAD OF ITS PARTY REGISTRATION IN A MARGINAL STATE SENATE SEAT AROUND BAKERSFIELD THE REPUBLICAN WON 53 AND DEFEATED A 14YEAR DEMOCRATIC ASSEMBLYMAN BUT THE BIG SURPRISE WAS A STATE SENATE RACE NORTH OF SAN FRANCISCO IN COUNTERCULTURAL REDWOOD COUNTRY AN AREA WHERE GEORGE BUSH WON ONLY 27 LAST NOVEMBER REPUBLICAN MARGE HANDLEY A DIRECTOR OF THE CALIFORNIA SMALL BUSINESS ASSOCIATION TRAILED A DEMOCRAT BY ONLY 671 VOTES OUT OF 100000 CAST WITH MANY ABSENTEES UNCOUNTED SHE MADE TAXES A KEY ISSUE SOMETHING IS HAPPENING OUT THERE IN AMERICA AND IT SHOULD MAKE THE CLINTON WHITE HOUSE NERVOUS ITS NEXT POLITICAL REALITY CHECKS WILL BE SATURDAY'S US SENATE RACE IN TEXAS AND NEXT WEEK'S RUNOFF FOR LES ASPIN'S WISCONSIN HOUSE SEAT 9304290105 930429 REVIEW & OUTLOOK EDITORIAL ASIDES BUFFALOED AT PENN UPDATE JOURNAL READERS HAVE BEEN WONDERING WHAT HAPPENED AT THE SCHEDULED MONDAY TRIAL OF THE STUDENT AT THE UNIVERSITY OF PENNSYLVANIA WHO WAS TO BE CALLED UP ON CHARGES THAT HE HAD UTTERED A RACIST SLUR THAT IS WATER BUFFALO AT A GROUP OF SORORITY SISTERS IT NOW DEVELOPS THAT THE ADMINISTRATION HAS POSTPONED THE HEARING UNTIL FALL THIS MEANS THAT THE ADMINISTRATION WILL ALLOW FRESHMAN EDEN JACOBOWITZ TO TWIST IN THE WIND AND ENDURE FOUR OR MORE MONTHS' ANXIETY UNTIL THE UNIVERSITY DECIDES HIS FATE IF FOUND GUILTY HE FACES POSSIBLE EXPULSION ACCORDING TO THE CAMPUS OFFICIAL IN CHARGE OF SCHEDULING THE HEARINGS THE CRUCIAL FACTOR IN THE POSTPONEMENT TO FALL WAS THE HOPE THAT THE AVALANCHE OF PUBLICITY OVER THIS CASE WOULD DIE DOWN BY THEN WHEN ASKED WHY THE STUDENT SHOULD HAVE THE BURDEN OF ANXIETY HANGING OVER HIM ON THESE BIZARRE CHARGES OF RACISM PENN PRESIDENT SHELDON HACKNEY INFORMED US AT SOME LENGTH THAT THE UNIVERSITY PROCEDURES WERE FAIR HE ARGUED FURTHER THAT THE SORORITY WOMEN MAKING THE CHARGES FELT AGGRIEVED AND THAT IT WAS THEREFORE NECESSARY TO TAKE ACTION STAY TUNED 9304290104 930429 KODAK'S FINANCIAL OFFICER QUITS IN RIFT WITH CHIEF STEFFEN'S MOVE AFTER CLASH OVER STRATEGY PROMPTS NOSE DIVE IN STOCK PRICE BY JOAN E RIGDON AND GAUTAM NAIK STAFF REPORTERS OF THE WALL STREET JOURNAL CHRISTOPHER J STEFFEN HAILED BY INVESTORS AS THE WHITEKNIGHT CHIEF FINANCIAL OFFICER WHO COULD SAVE STODGY EASTMAN KODAK CO RESIGNED ABRUPTLY FOLLOWING A CONFRONTATION WITH HIS BOSS CHAIRMAN KAY R WHITMORE AND MR STEFFEN CLASHED ON HOW QUICKLY TO SELL ASSETS AND CUT COSTS AND HOW MUCH SAY MANAGERS AT THE ROCHESTER NY PHOTOGRAPHY COMPANY SHOULD HAVE IN THOSE MATTERS MR STEFFEN WHO WANTED TO MOVE SWIFTLY AND AUTHORITATIVELY HAD BEEN ON THE JOB FOR LESS THAN THREE MONTHS AND WAS EXPECTED TO BE NAMED TO THE BOARD AT THE ANNUAL MEETING MAY 12 THE NEWS SENT KODAK SHARES PLUNGING 5125 TO 4725 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE KNOCKING 17 BILLION OFF THE COMPANY'S MARKET VALUE ABOUT HALF THE AMOUNT IT HAD RISEN SINCE MR STEFFEN WAS NAMED CHIEF FINANCIAL OFFICER IN JANUARY ANALYSTS WHO HAD TURNED BULLISH ON THE STOCK BECAUSE OF MR STEFFEN WERE IN SHOCK B ALEX HENDERSON OF PRUDENTIAL SECURITIES HAD THREE WORDS OF REACTION STUNNED DISMAYED DISHEARTENED IN AN INTERVIEW MR WHITMORE SAID MR STEFFEN SIMPLY WALKED INTO HIS OFFICE LATE TUESDAY AND ANNOUNCED HIS DEPARTURE IN A TERSE STATEMENT MR STEFFEN WHO COULDN'T BE REACHED TO COMMENT SAID THE COMPANY AND I DISAGREE ON THE APPROACH TO SOLVING ITS PROBLEMS THE 60YEAROLD MR WHITMORE SAID THE TWO AGREED ON GOALS BUT NOT ON HOW TO ACHIEVE THEM THE CONFLICT BETWEEN THE TWO EXECUTIVES WAS THE SUBJECT OF A PAGE ONE ARTICLE IN YESTERDAY'S WALL STREET JOURNAL LAST NIGHT MR WHITMORE MET WITH ANALYSTS AT THE ST REGIS HOTEL IN NEW YORK A MEETING THAT MR STEFFEN 51 WAS ORIGINALLY SCHEDULED TO HOST HE LEFT TODAY BECAUSE OF THIS MEETING MR WHITMORE SAID HE WASN'T READY TO COME DOWN HERE AND TELL YOU HE'S UNHAPPY ACKNOWLEDGING THEIR POWER STRUGGLE MR WHITMORE TOLD THE ANALYSTS I SAID TO MR STEFFEN I'M CHIEF EXECUTIVE THIS IS HOW I WANT TO DO IT LET ME MAKE MY STAB AT MAKING MY PROCESS WORK MR WHITMORE EXPLAINED THAT MR STEFFEN WAS APPROACHING KODAK'S PROBLEMS FROM A PURELY FINANCIAL PERSPECTIVE WHILE MR WHITMORE INSISTED ON CONSIDERING OTHER ISSUES SUCH AS RESEARCH PRODUCT DEVELOPMENT AND MARKET SHARE FOR VARIOUS BUSINESSES MR WHITMORE ADDED HE'S GOT A BETTER TRACK RECORD THAN I HAVE BUT HE'S NEVER BEEN A CHIEF EXECUTIVE MR WHITMORE WHO SAID EARLIER IN THE DAY THAT HE RETAINED A MANAGEMENT CONSULTANT AND INVESTMENT BANKERS TO REDUCE DEBT QUICKLY AND INCREASE SHAREHOLDER VALUE PROMISED THE ANALYSTS THAT HE WOULD DELIVER A NEW FINANCIAL PLAN BY SEPTEMBER AT THE LATEST REACTIONS WERE MIXED AFTER THE MEETING WERTHEIM SCHRODER ANALYST MICHAEL ELLMANN SAID THE POSSIBILITY OF FAIRLY RADICAL CHANGE IS INTACT GOLDMAN SACHS & CO ANALYST JACK KELLY WAS MORE SKEPTICAL STEFFEN'S DEPARTURE RAISES THE RISK THAT KODAK'S PLAN WILL NOT BE IMPLEMENTED QUICKLY WALL STREET ISN'T CONVINCED THAT MR WHITMORE WHO HAD BEEN URGED BY HIS BOARD TO BRING IN AN OUTSIDER WHEN HE HIRED MR STEFFEN IS UP TO THE CHALLENGE THE MARKET THINKS THE WRONG GUY RESIGNED SAID RALPH WHITWORTH PRESIDENT OF THE UNITED SHAREHOLDERS ASSOCIATION A WASHINGTON SHAREHOLDER ACTIVIST GROUP MICHAEL PRICE PRESIDENT OF MUTUAL SHARES WHICH OWNS ONE MILLION KODAK SHARES SAID KODAK'S SHAREHOLDERS HAVE TO LOOK TO THE BOARD TO DO THE RIGHT THING HE SAID HE HOPES THE FEW EXECUTIVES ON KODAK'S BOARD UNDERSTAND THAT THIS IS THE 1990S AND WHAT HAPPENED AT AMERICAN EXPRESS WHERE JAMES ROBINSON WAS EFFECTIVELY FORCED TO RETIRE BY ANGRY SHAREHOLDERS COULD HAPPEN AT KODAK FIRST BOSTON ANALYST R JACKSON BLACKSTOCK WAS MORE BLUNT EITHER BOARD MEMBERS GET WHITMORE TO DELIVER RESULTS OR THEY DELIVER WHITMORE'S HEAD DIRECTORS COULDN'T BE REACHED FOR COMMENT BUT MR WHITMORE INSISTED IN THE INTERVIEW THAT BOARD MEMBERS DIDN'T CRITICIZE HIM FOR MR STEFFEN'S DEPARTURE AND THAT THEY SIMPLY URGED HIM AGAIN TO FIND A NEW OUTSIDE CHIEF FINANCIAL OFFICER THE SEARCH COULD TAKE MONTHS BUT MR WHITMORE DOESN'T HAVE MUCH TIME I NEED SOMEONE BADLY HE SAID MR WHITMORE WHO VALUES CONSENSUS AND RESISTS LAYOFFS CLASHED WITH THE BRASH MR STEFFEN WHO BOASTED OF HIS SUCCESS HELPING TURN AROUND HONEYWELL INC IN THE LATE '80S AND CHRYSLER CORP BEFORE THAT THE TWO AGREED THAT THEY NEEDED TO CUT COSTS BUT DISAGREED ON HOW EARLIER THIS YEAR MR WHITMORE ANNOUNCED 2000 LAYOFFS BUT MR STEFFEN HAS TOLD ANALYSTS THAT MOVE WAS A DROP IN THE BUCKET FOR A HALFHOUR TO AN HOUR FOLLOWING THE CLASH MR WHITMORE SAID HE AND TWO GROUP PRESIDENTS LEO J JACK THOMAS IMAGING PRESIDENT AND WILBUR J PREZZANO HEALTH PRESIDENT TRIED TO DISSUADE MR STEFFEN BUT TO NO AVAIL MR THOMAS AND MR PREZZANO DECLINED TO RETURN PHONE CALLS MR WHITMORE SAID HE AND MR STEFFEN WHO ROCHESTER WAGS CALLED CUT AND SLASH DISAGREED ON METHODOLOGY HE WASN'T FULLY COMFORTABLE WITH THE METHODOLOGY I WAS USING WITH HOW MUCH MANAGEMENT BUYIN WE NEEDED TO GO FORWARD MR WHITMORE SAID MR WHITMORE DIDN'T ELABORATE BUT MR PRICE OF MUTUAL SHARES SAID THAT WHEN HE VISITED KODAK TWO WEEKS AGO MR WHITMORE TOLD HIM THE TRAIN IS LEAVING THE STATION AND CHRIS HAS TO GET ON OUR TRAIN MR PRICE SAID I THINK HE MEANT THAT HE AND HIS OTHER THREE SENIOR EXECUTIVES HAD A GAME PLAN AND MR STEFFEN HAD HIS OWN IDEAS TUESDAY NIGHT AND YESTERDAY MORNING MR WHITMORE CALLED EACH BOARD MEMBER TO INFORM THEM STARTING WITH JOHN J PHELAN JR CHAIRMAN OF A NEW CORPORATE DIRECTIONS COMMITTEE THAT WAS FORMED EARLIER THIS YEAR TO INCREASE SHAREHOLDER VALUE MR PHELAN WHO DIDN'T RETURN PHONE CALLS URGED THE CHAIRMAN TO FIND A NEW OUTSIDE CHIEF FINANCIAL OFFICER MR WHITMORE SAID I THOUGHT I HAD THE RIGHT PERSON I'M VERY DISAPPOINTED THAT IT TURNS OUT I DON'T HAVE THE RIGHT PERSON I WILL GO OUT AGAIN AND TRY AND FIND THE RIGHT PERSON MR WHITMORE SAID FOR THE PAST TWO YEARS THE BOARD HAS BEEN PUTTING PRESSURE ON MR WHITMORE TO PERFORM DURING ONE BOARD MEETING IN FEBRUARY 1991 MR PHELAN NEEDLED MR WHITMORE ABOUT KODAK'S POOR EARNINGS SAID A PERSON WHO WAS PRESENT MR PHELAN REMINDED MR WHITMORE THAT KODAK HAD BEEN BLAMING POOR RESULTS ON THE ECONOMY BUT WITH THE ECONOMY IMPROVING KODAK SHOULD DO BETTER SPECIFICALLY MR PHELAN SAID KODAK SHOULD IMPLEMENT PLANS TO PRODUCE EARNINGS OF 5 A SHARE FOR THE NEXT YEAR 1992 KODAK MISSED EARNINGS THAT YEAR WERE 353 A SHARE AFTER RESTRUCTURING CHARGES 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 SLOW GROWTH IN OTHER BUSINESSES SUCH AS COPIERS SOME ANALYSTS AND MONEY MANAGERS BELIEVE MR STEFFEN'S DEPARTURE IS NO GREAT LOSS BECAUSE HE'S ALREADY INSTILLED A SENSE OF URGENCY IN MR WHITMORE AND THE BOARD MR BLACKSTOCK OF FIRST BOSTON FOR ONE SAID HE CONTINUES TO RECOMMEND THE STOCK AND SAID DEAN WITTER ANALYST EUGENE GLAZER HE WAS CFO NOT CEO HE ADDED THIS IS NOT A SICK SICK COMPANY IT'S A COMPANY THAT'S ERODING BUT IT'S NOT DEEP DOWN SICK YESTERDAY KODAK REPORTED A FIRSTQUARTER LOSS OF 188 BILLION OR 575 A SHARE AFTER A ONETIME CHARGE OF 203 BILLION FOR AN ACCOUNTING CHANGE AND A 21 MILLION CONTINUING ACCOUNTING CHARGE IN THE YEAREARLIER QUARTER KODAK HAD NET INCOME OF 297 MILLION OR 92 CENTS A SHARE AFTER A GAIN FROM AN ACCOUNTING CHANGE EXCLUDING THE CHARGES EARNINGS IN THE RECENT QUARTER WERE 149 MILLION OR 46 CENTS A SHARE 3 HIGHER THAN THE YEAR EARLIER'S 145 MILLION OR 45 CENTS A SHARE SALES ROSE SLIGHTLY TO 444 BILLION HERE ARE THE MEMBERS OF KODAK'S BOARD RICHARD A ZIMMERMAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER HERSHEY FOODS CORP MARTHA LAYNE COLLINS PRESIDENT MARTHA LAYNE COLLINS & ASSOCIATES AND PRESIDENT ST CATHARINE COLLEGE CHARLES T DUNCAN SENIOR COUNSEL REID & PRIEST PAUL E GRAY CHAIRMAN OF THE CORPORATION MASSACHUSETTS INSTITUTE OF TECHNOLOGY JOHN J PHELAN JR PRESIDENT INTERNATIONAL FEDERATION OF STOCK EXCHANGES KAY R WHITMORE CHAIRMAN AND CHIEF EXECUTIVE OFFICER EASTMAN KODAK CO EARNEST W DEAVENPORT JR GROUP VICE PRESIDENT EASTMAN KODAK CO ALICE F EMERSON FELLOW ANDREW W MELLON FOUNDATION ROBERTO C GOIZUETA CHAIRMAN AND CHIEF EXECUTIVE OFFICER COCACOLA CO WILBUR J PREZZANO GROUP VICE PRESIDENT EASTMAN KODAK CO LEO J THOMAS GROUP VICE PRESIDENT EASTMAN KODAK CO COLBY H CHANDLER RETIRED CHAIRMAN AND CHIEF EXECUTIVE OFFICER EASTMAN KODAK CO RICHARD S BRADDOCK CHIEF EXECUTIVE OFFICER MEDCO CONTAINMENT SERVICES INC JOHN F BURLINGAME VICE CHAIRMAN EMERITUS GENERAL ELECTRIC CO GABRIELLA STERN AND RANDALL SMITH CONTRIBUTED TO THIS ARTICLE 9304290103 930429 KEENE PLAN TO SELL UNIT CLEARED KEENE WHICH HAS BEEN BATTERED BY ESCALATING ASBESTOSLIABILITY LITIGATION SAID IT WOULD USE PROCEEDS FROM THE SALE TO ATTEMPT TO RESOLVE THE LITIGATION REINHOLD IS KEENE'S LAST OPERATING SUBSIDIARY 9304290102 930429 WEDNESDAY'S MARKETS STOCKS DOLLAR FINISH MIXED BONDS FALL A BIT BY ANITA RAGHAVAN AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL STOCKS ENDED MIXED AS A BIG DROP IN EASTMAN KODAK WEIGHED ON THE DOW JONES INDUSTRIAL AVERAGE BOND PRICES SLIPPED A BIT WHILE THE DOLLAR WAS MIXED THE INDUSTRIAL AVERAGE FELL 243 POINTS TO 341350 IN HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX ROSE FRACTIONALLY AND THE NASDAQ COMPOSITE INDEX GAINED 564 TO 65816 STOCKS OPENED LOWER AFTER KODAK STUNNED WALL STREET WITH ITS ANNOUNCEMENT THAT CHRISTOPHER J STEFFEN THE MAN CREDITED WITH TURNING AROUND HONEYWELL HAD RESIGNED AS CHIEF FINANCIAL OFFICER KODAK TUMBLED 5 1/8 TO 47 1/4 AS SEVERAL WALL STREET BROKERAGE FIRMS RUSHED TO DOWNGRADE THE COMPANY'S STOCK BUT SHARES OF INTERNATIONAL BUSINESS MACHINES JUMPED 1 1/2 TO 49 7/8 ON SPECULATION THAT MR STEFFEN IS A LIKELY CONTENDER FOR THE POSITION OF CHIEF FINANCIAL OFFICER AT BIG BLUE PEOPLE FAMILIAR WITH IBM SAID A NEW FINANCIAL OFFICER HAD ALREADY BEEN SELECTED ABBY COHEN STOCKMARKET STRATEGIST AT GOLDMAN SACHS SAID UNCERTAINTY ABOUT THE ECONOMY AND FISCAL POLICY TOGETHER WITH THE RECENT RISE IN INTEREST RATES IS MAKING INVESTORS SKITTISH MS COHEN SAID SHE EXPECTS THE MARKET TO MOVE IN A NARROW BAND UNTIL THE CLOUD OF UNCERTAINTY IS LIFTED AND INVESTORS ARE CONVINCED THAT INFLATION ISN'T A PROBLEM AND THAT PROFIT GAINS ARE LIKELY TO BE SUSTAINABLE OVERSEAS STOCKS IN LONDON FELL 12 TRADERS BLAMED MUCH OF THE SLIDE ON RUMORS THAT BIGTIME MONEY MANAGER GEORGE SOROS WAS BETTING AGAINST THE BRITISH STOCK MARKET WITH FUTURES THE FINANCIAL TIMESSTOCK EXCHANGE 100 SHARE INDEX WAS DOWN 354 POINTS TO 27973 AFTER FALLING AS MUCH AS 456 POINTS EARLIER A SPOKESMAN AT SOROS MANAGEMENT CO SAID AS A MATTER OF POLICY WE DON'T COMMENT ON OUR POSITIONS TRADERS SAID BRITISH STOCKS WERE ALSO BEING HURT BY A STEADY STREAM OF NEW ISSUES PLUS HEAVY GOVERNMENTBORROWING REQUIREMENTS THAT HAVE LEFT MONEY MANAGERS SHORT OF CASH WORLDWIDE STOCK PRICES GAINED IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX ROSE 022 TO 10451 IN MAJOR MARKET ACTION STOCKS WERE MIXED VOLUME TOTALED 2669 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 987 ISSUES ADVANCED AND 917 DECLINED THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 15810 MARKS AND 11215 YEN COMPARED WITH 15830 MARKS AND 11167 YEN TUESDAY 9304290101 930429 LETTERS TO THE EDITOR TAX CUT ROADBLOCKS JUST ONE SMALL CORRECTION TO MARTIN FELDSTEIN'S EXCELLENT ARTICLE ON THE CLINTON BUDGET CLINTON'S REVENUE MIRAGE EDITORIAL PAGE APRIL 6 THE BUDGET LAW THAT IMPOSES ROADBLOCKS AGAINST ALLEGED DEFICITINCREASING LEGISLATION SUCH AS TAX CUTS IS NOT THE BUDGET ENFORCEMENT ACT OF 1990 THE DEFICITNEUTRALITY REQUIREMENT ACTUALLY WAS IMPOSED BY GRAMMRUDMANHOLLINGS BACK IN 1985 INDEED THE 1990 LAW ACTUALLY WEAKENED THE PROVISION BY PROHIBITING LEGISLATION THAT WOULD PAY FOR TAX CUTS WITH REDUCTIONS IN DISCRETIONARY SPENDING 9304290100 930429 FINANCING BUSINESS INTERLINQ SOFTWARE CORP INTERLINQ SOFTWARE CORP OF KIRKLAND WASH A DEVELOPER OF PCBASED MORTGAGE LENDING SOFTWARE ANNOUNCED THE INITIAL PUBLIC OFFERING OF 25 MILLION SHARES OF COMMON STOCK AT 8 A SHARE OF THE TOTAL SHARES 15 MILLION ARE BEING SOLD BY THE FORMERLY CLOSELY HELD COMPANY AND ONE MILLION ARE BEING SOLD BY EXISTING SHAREHOLDERS THE SHARES BEGAN NATIONAL OVERTHECOUNTER TRADING YESTERDAY THE COMPANY SAID PROCEEDS FROM THE OFFERING WOULD BE USED TO FUND PRODUCT DEVELOPMENT WORKING CAPITAL REQUIREMENTS POSSIBLE ACQUISITIONS AND OTHER GENERAL CORPORATE PURPOSES 9304290099 930429 TECHNOLOGY & HEALTH DIGITAL STANDARD'S APPROVAL CLOUDED BY PATENT DISPUTE BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CELLULAR TELEPHONE EQUIPMENT MAKERS AND SERVICE PROVIDERS VOTED OVERWHELMINGLY TO APPROVE A NEW INDUSTRY STANDARD FOR DIGITAL COMMUNICATIONS BUT PATENT DISPUTES CLOUD FINAL APPROVAL OF AN INDUSTRY STANDARD FOR CODE DIVISION MULTIPLE ACCESS OR CDMA FOR WIRELESS COMMUNICATIONS OF 28 CELLULAR SERVICE PROVIDERS AND EQUIPMENT MAKERS CASTING BALLOTS WITH THE TELECOMMUNICATIONS INDUSTRY ASSOCIATION 21 WERE AFFIRMATIVE FOUR WERE NEGATIVE AND THREE ABSTAINED THE ASSOCIATION SAID PETER BENNETT THE ASSOCIATION'S VICE PRESIDENT FOR STANDARDS AND TECHNOLOGY SAID THE SUBCOMMITTEE CHARGED WITH ESTABLISHING THE CDMA STANDARD IS NOW RESPONDING TO COMMENTS ATTACHED TO THE BALLOTS TRYING TO RESOLVE AS MANY ISSUES AS POSSIBLE CDMA BREAKS MESSAGES INTO SMALL BITS LABELS EACH WITH A UNIQUE CODE AND TRANSMITS MANY MESSAGES SIMULTANEOUSLY BY SPREADING THEM THROUGHOUT A BAND OF THE RADIO SPECTRUM THE MESSAGES ARE REASSEMBLED AT THE RIGHT DESTINATION AND IN THE RIGHT ORDER BASED ON THEIR CODES RIVAL DIGITAL TECHNOLOGIES KNOWN AS TIME DIVISION MULTIPLE ACCESS OR TDMA AND BROADBAND CDMA ALSO BREAK MESSAGES INTO SMALL UNITS TDMA TRANSMITS THE UNITS IN DIFFERENT TIME SLOTS IN SHORT BURSTS AND REASSEMBLES THEM AT THEIR DESTINATIONS BROADBAND CDMA SPREADS THE UNITS THROUGH 10 MEGAHERTZ OF THE RADIO SPECTRUM THEN REASSEMBLES THEM THE PROPOSED NEW CDMA STANDARD USES ONLY 125 MEGAHERTZ OF THE SPECTRUM BILLIONS OF DOLLARS ARE AT STAKE TO EXPAND THEIR CALLING CAPACITY AND TO IMPROVE SOUND QUALITY CELLULAR PHONE COMPANIES PLAN TO SPEND HUGE AMOUNTS OVER THE NEXT FEW YEARS TO UPDATE THEIR ANALOG NETWORKS WITH EQUIPMENT THAT TRANSMITS CALLS DIGITALLY OR IN THE 1S AND 0S OF COMPUTER CODE SOME COMPANIES INCLUDING MCCAW CELLULAR COMMUNICATIONS INC AND SOUTHWESTERN BELL CORP ALREADY HAVE BEGUN INSTALLING TDMA EQUIPMENT OTHERS INCLUDING PACIFIC TELESIS GROUP BELL ATLANTIC CORP AND U S WEST INC PLAN TO BUY CDMA EQUIPMENT THE TDMA AND CDMA SYSTEMS HOWEVER ARE INCOMPATIBLE SO CUSTOMERS WHO REGULARLY USE ONE TECHNOLOGY WILL BE FORCED TO USE ANALOG TRANSMISSION WHEN THEY TRAVEL INTO AREAS THAT USE THE RIVAL TECHNOLOGY CELLULAR COMPANIES WORRY THAT CUSTOMERS WON'T BE PLEASED WITH THAT SITUATION ESPECIALLY AFTER PAYING HUNDREDS OF DOLLARS FOR NEW TELEPHONES IRWIN JACOBS CHIEF EXECUTIVE OFFICER OF QUALCOMM INC THE SAN DIEGOBASED DEVELOPER OF THE CDMA CELLULAR TECHNOLOGY WAS ENCOURAGED BY THE BALLOTING WE SEE THIS STRONG SUPPORT AS AN IMPORTANT FURTHER STEP IN THE ADOPTION OF CDMA AS THE TECHNOLOGY OF CHOICE FOR FUTURE CELLULAR AND WIRELESS SYSTEMS HE SAID THE OUTCOME REMAINS UNCERTAIN BECAUSE INTERDIGITAL COMMUNICATIONS CORP BASED IN KING OF PRUSSIA PA FILED A LAWSUIT IN FEDERAL COURT IN PHILADELPHIA TWO WEEKS AGO CHARGING THAT QUALCOMM'S SYSTEM VIOLATES INTERDIGITAL PATENTS AND TOLD THE TIA IT WON'T LICENSE ITS TECHNOLOGY INTERDIGITAL MEANTIME HOLDS MANY PATENTS FOR TDMA AND BROADBAND CDMA QUALCOMM FIRED BACK WITH A LAWSUIT IN FEDERAL COURT IN SAN DIEGO CHARGING PATENT INFRINGEMENT BY INTERDIGITAL AND ASKING THE COURT TO RULE THAT QUALCOMM ISN'T INFRINGING ON INTERDIGITAL PATENTS SEVERAL PHONE COMPANIES AND EQUIPMENT MANUFACTURERS ALREADY HAVE SIGNED AGREEMENTS WITH QUALCOMM TO USE ITS CDMA TECHNOLOGY ALTHOUGH THE TIA NORMALLY DOESN'T ISSUE A STANDARD WHEN IT HAS BEEN INFORMED OF A PATENT DISPUTE IT MAY DECIDE TO ISSUE AN INTERIM STANDARD WARNING MANUFACTURERS ABOUT THE DISPUTE MR BENNETT SAID HE ALSO NOTED THAT THE ASSOCIATION NOT THE CDMA SUBCOMMITTEE IS HANDLING THE PATENT ISSUES 9304290098 930429 THIS ELVIS KING'S ROYAL CARRIAGE SURELY AIN'T NOTHIN' BUT A HONDA BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO YASUMASA MORI IS THE KING FOR A YEAR HIS MISSION TO HEAR HIM TELL IT IS FOR LIFE THE 31YEAROLD JAPANESE IS THE REIGNING WORLDCHAMPION ELVIS IMPERSONATOR OUTCROONING DOZENS OF OTHER ELVII THE PLURAL OF ELVIS ACCEPTED BY FANS LAST YEAR AT THE SIXTH ANNUAL INTERNATIONAL ELVIS IMPERSONATORS CONTEST AT BAD BOB'S VAPORS SUPPER CLUB IN MEMPHIS TENN MR MORI THE FIRSTEVER FOREIGN CHAMP CLAIMS A DEEP KNOWLEDGE OF THE KI OF ELVIS THE ENERGY THAT MADE THE KING OF ROCKANDROLL UNIQUE KI IS A JAPANESE WORD MEANING SPIRIT HEART OR IN THIS CASE MOJO MR MORI MUST HAVE SOMETHING SINCE THERE'S PLENTY HE HASN'T GOT NO THICK LIPS NO SNEER NO GREASEDBACK HAIR HE'S SKINNY AND HE'S JAPANESE WHICH WOULD SEEM LIKE A HANDICAP WHEN IMITATING A HIP SHAKER FROM TUPELO MISS I DON'T LOOK LIKE ELVIS I DON'T SOUND LIKE ELVIS HE SAYS IN THE FLUENT ENGLISH HE LEARNED FROM HIS CANADIAN WIFE BUT THE BIG ELVIS FANS CHOSE ME I SING LIKE ELVIS FROM THE BOTTOM OF MY HEART I WANT TO DISPROVE THE BAD IMAGE OF ELVIS IN JAPAN HE SAYS JAPANESE PEOPLE DON'T REALIZE ELVIS WAS A GREAT ENTERTAINER HE THINKS MOST JAPANESE TREAT ELVIS LIKE A CARTOON THE EPITOME OF 1950S GREASER ROCKANDROLL HE WANTS TO CONVEY THAT SPECIAL ELVIS KI TO THE DOUBTERS THIS IS NEVERENDING HE VOWS IN A TAPE OF MR MORI'S CHAMPIONSHIP PERFORMANCE THE 1000STRONG AUDIENCE MOSTLY WOMEN OR ELVIS WIDOWS LOOKS SKEPTICAL WHEN THE UNASSUMING JAPANESE COMES OUT BUT BY THE TIME HE WINDS UP HIS ACT WITH KARATE KICKS AND ELVIS'S VERSION OF DIXIE THEY'RE CLAPPING STOMPING AND GRABBING AT HIM SUCH PERFECTION HAS A COST MR MORI GAVE UP A PROMISING SINGING CAREER PERFORMING OTHER ROCKANDROLL STANDARDS SIX NIGHTS A WEEK HE FIGURES HE HAS SPENT MORE THAN FIVE MILLION YEN 44775 ON GUITARS COSTUMES AND JEWELRY JAPAN'S ECONOMIC DOWNTURN HAS ALSO MEANT A SLOW MARKET FOR ELVII HERE THEN THERE'S THE COST OF MAINTAINING A 10PIECE BAND TOURING THE COUNTRY AND KEEPING UP WITH THE WORLDWIDE ELVII NETWORK ONE MEMBER OF WHICH MAY KEEP THE KING AN EXPATRIATE FOR ANOTHER YEAR PEOPLE FROM CANADA AUSTRALIA AUSTRIA HE SAYS FLIPPING THROUGH A SCRAPBOOK FULL OF PRESLEY PURPORTERS THE UNITED KINGDOM PAKISTAN HE'S VERY GOOD HIS VOICE JUST LIKE ELVIS 9304290097 930429 MONEY FUND YIELDS POSTED SLIGHT DECLINE IN THE LATEST WEEK A WALL STREET JOURNAL NEWS ROUNDUP YIELDS ON TAXABLE MONEYMARKET MUTUAL FUNDS MOVED FRACTIONALLY LOWER IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD EASED TO 265 FROM 266 THE NEWSLETTER SAID COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS ASSETS OF 588 TAXABLE FUNDS DECREASED BY 267 BILLION TO 48782 BILLION THE NEWSLETTER REPORTED INSTITUTIONAL INVESTORS ACCOUNTED FOR 160 BILLION OF THE OUTFLOW AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS REMAINED AT 63 DAYS A SIGN THAT PORTFOLIO MANAGERS DON'T EXPECT A MAJOR CHANGE IN SHORTTERM INTEREST RATES SOON THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS EDGED DOWN TO 261 FROM 263 IN THE LATEST WEEK THE AVERAGE 30DAY SIMPLE YIELD REMAINED AT 265 WHILE THE AVERAGE 30DAY COMPOUND YIELD EASED TO 268 FROM 269 ACCORDING TO THE NEWSLETTER YIELDS ON TAXFREE FUNDS ROSE IN THE LATEST WEEK THE AVERAGE SEVENDAY COMPOUND YIELD INCREASED TO 204 FROM 197 THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 283 FOR AN INVESTOR IN THE 28 TAX BRACKET AND TO 296 FOR SOMEONE PAYING 31 IN TAXES ASSETS OF 319 TAXEXEMPT FUNDS DECREASED 138 BILLION TO 9942 BILLION WHILE AVERAGE MATURITY SHORTENED BY ONE DAY TO 48 DAYS ACCORDING TO MONEY FUND REPORT 9304290096 930429 DIVIDEND NEWS EATON CORP EATON CORP DECLARED A 2FOR1 STOCK SPLIT REDEEMED ITS SHARE PURCHASE RIGHTS AND BOOSTED ITS COMMON STOCK DIVIDEND 9 THE SPLIT IS PAYABLE JUNE 28 TO STOCK OF RECORD JUNE 10 THE POSTSPLIT DIVIDEND INCREASE TO 30 CENTS A SHARE FROM 275 CENTS IS EFFECTIVE IN THE THIRD QUARTER STOCKHOLDERS WILL RECEIVE 667 CENTS A SHARE UNDER THE REDEMPTION OF THE SHARE PURCHASE RIGHTS PAYABLE MAY 25 TO STOCK OF RECORD MAY 10 THE CLEVELAND MAKER OF VEHICLE POWERTRAIN PARTS AND A VARIETY OF CONTROLS DECLARED A SECONDQUARTER DIVIDEND OF 55 CENTS A SHARE PAYABLE MAY 25 TO STOCK OF RECORD MAY 10 9304290095 930429 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN WITH JAPANESE CONSUMER SPENDING ALREADY IN THE SLOW LANE AN EXPECTED 12 PLUNGE IN CORPORATE OUTLAYS ON NEW PLANTS AND EQUIPMENT THIS YEAR WOULD PUT THE BRAKES ON ECONOMIC GROWTH A SURVEY OF 4322 MAJOR COMPANIES WITH EXCESS CAPACITY AND WEAK DEMAND FOUND THE SHARPEST DECLINE IN PLANNED CAPITAL SPENDING SINCE 1981 WHEN THE GOVERNMENT BEGAN COLLECTING THE DATA THE COMPANIES INTEND TO INVEST 43057 TRILLION YEN 38618 BILLION IN THE YEAR ENDING MARCH 31 1994 COMPARED WITH THE YEAREARLIER 48856 TRILLION YEN WHICH WAS OFF 54 FROM THE PREVIOUS FISCAL YEAR ECONOMIC INDICATORS THIS WEEK SUGGESTED JAPAN MAY BE EMERGING FROM RECESSION BUT THE WEAK CAPITAL SPENDING WHICH ACCOUNTS FOR 20 OF JAPAN'S GROSS NATIONAL PRODUCT BODES ILL FOR A REBOUND ESPECIALLY AS THESE OUTLAYS AND CONSUMER SPENDING TOGETHER REPRESENT 80 OF GNP A EUROPEAN COMMUNITY COURT RULED THAT WHILE MEN AND WOMEN MUST RECEIVE EQUAL PENSION BENEFITS ITS DECISION NEEDN'T BE APPLIED RETROACTIVELY THE RULING BY THE EUROPEAN COURT OF JUSTICE WAS WELCOME NEWS FOR COMPANIES IN BRITAIN GERMANY AND THE NETHERLANDS WHICH WILL SAVE A TOTAL OF 143 BILLION UNDER THE NEW RULING THE COURT INITIALLY DECIDED ON MAY 17 1990 THAT COMPANIES COULDN'T PAY DIFFERENT BENEFITS TO MEN AND WOMEN IN ITS LATEST RULING THE COURT INDICATED THAT PENSION PAYMENTS BEFORE THAT DATE WOULDN'T HAVE TO BE ADJUSTED MEXICAN POLICE LAUNCHED A SYSTEM OF HIGHWAY CHECKPOINTS TO FIGHT CRIME INCLUDING ARMS AND DRUG TRAFFICKING ATTORNEY GENERAL JORGE CARPIZO MACGREGOR SAID THAT ALTHOUGH THE PROGRAM WOULD INCONVENIENCE MOTORISTS IT WAS NECESSARY TO COMBAT CRIMINALS' USE OF ROADS AND PROVIDE BETTER SECURITY BANDITRY IS COMMON ON REMOTE ROADS MR CARPIZO FORMER CHIEF OF MEXICO'S NATIONAL HUMAN RIGHTS COMMISSION SAID THE CHECKPOINT PROJECT WOULDN'T BE CONDUCTED ARBITRARILY CHINA WHICH HAS A HUGE LABOR SURPLUS ORDERED STATE ENTERPRISES TO FIND JOBS FOR WORKERS THEY LAY OFF STATEOWNED FIRMS IN CHINA WHICH ONCE PROVIDED LIFETIME JOB SECURITY PLAN HUGE LAYOFFS IN THE FACE OF MAJOR LOSSES BEIJING IS TRYING TO DEAL WITH JOBLESSNESS IN DEVELOPING A MARKETDRIVEN ECONOMY PREMIER LI PENG'S EXECUTIVE ORDER ALSO OFFERS TAX BREAKS TO SERVICE INDUSTRIES SET UP BY STATE FIRMS TO EMPLOY AND RETRAIN LAIDOFF WORKERS AND PROVIDES UNEMPLOYMENT BENEFITS METAL AND ELECTRONICS WORKERS IN EASTERN GERMANY AUTHORIZED A STRIKE NEXT WEEK FOR HIGHER PAY A WALKOUT BY THE 71000 IG METALL UNION MEMBERS WOULD BE THE FIRST BIG LABOR CONFLICT SINCE THE 1930S IN THE REGION WHICH ALREADY HAS A 17 UNEMPLOYMENT RATE AND WHERE PAY IS 60 OF THAT IN WESTERN GERMANY THE UNION WAS TO DECIDE TODAY ON THE TIMING OF A STRIKE EMPLOYERS BROKE A 1991 DEAL TO PHASE WESTERN GERMAN PAY SCALES INTO THE EAST AND GRANT A 21 PAY INCREASE THIS YEAR SAYING THIS WOULD CLOSE MANY FACTORIES SOME OTHER EASTERN UNIONS HAVE AGREED TO INCREASES THAT MATCH THIS YEAR'S ANTICIPATED 9 INFLATION RATE ZIMBABWE IN SWITCHING FROM A COMMAND ECONOMY MOVED TO ENCOURAGE INVESTMENT IN THE SOUTHERN AFRICAN STATE FOREIGNERS MAY BUY STOCK AND OWN AS MUCH AS 35 OF COMPANIES AND RESTRICTIONS WERE LIFTED ON DIVIDEND PAYMENTS OVERSEAS INVESTORS IN NEW GOLD MINES MAY GET LOWINTEREST LOANS RATHER THAN HAVING TO PAY RATES AS HIGH AS 48 EXPORTERS MAY KEEP 50 UP FROM 35 OF HARDCURRENCY EARNINGS TO PAY FOR IMPORTS OF RAW MATERIALS BUSINESS TRAVEL AND PROMOTION OF PRODUCTS FIRMS AND INDIVIDUALS FOR THE FIRST TIME MAY HOLD BANK ACCOUNTS IN FOREIGN CURRENCIES WITH UNRESTRICTED USE CHINA APPROVED SUBWAY CONSTRUCTION AND IMPROVEMENTS IN EIGHT CITIES WHERE TRANSPORTATION NETWORKS ARE STRAINED BY TRAFFIC CONGESTION STEMMING FROM THE COUNTRY'S RAPID MODERNIZATION THE SUBWAY PROJECTS ARE SCHEDULED FOR COMPLETION BY 1997 IN BEIJING SHANGHAI TIANJIN QINGDAO SHENZHEN CANTON SHENYANG AND CHONGQING SHANGHAI CHINA'S BIGGEST CITY WITH 134 MILLION PEOPLE DOESN'T HAVE A SUBWAY CHINA ALSO WILL STEP UP HIGHWAY CONSTRUCTION WHICH HASN'T KEPT UP WITH TRAFFIC GROWTH THOUGH URBAN ROADS HAVE MORE THAN DOUBLED SINCE 1978 DEMAND FOR PUBLIC TRANSIT HAS GROWN AT LEAST 25FOLD TRAFFIC JAMS ARE THE NORM IN CITIES SUCH AS CHENGDU IN SICHUAN PROVINCE WHICH IS BUILDING A MAJOR ROAD NETWORK AND IN BEIJING WHICH HAS PROMISED EFFICIENT TRANSPORT SERVICES AS PART OF CHINA'S BID TO HOST THE 2000 OLYMPICS TRAFFIC IS SNARLED EVERY DAY BY 600000 VEHICLES AND 85 MILLION BICYCLES RUSSIA'S GOLD PRODUCTION LAST YEAR FELL 85 TO 1295 METRIC TONS FROM A YEAR EARLIER JAPAN'S DIET THE PARLIAMENT DECLARED A NATIONAL HOLIDAY JUNE 9 THE WEDDING DAY FOR CROWN PRINCE NARUHITO AND MASAKO OWADA AND AUTHORIZED AN ISSUE OF COMMEMORATIVE COINS THE GOVERNMENT WHICH ALREADY APPROVED A 3 MILLION WEDDING BUDGET IS EXPECTED TO SET ASIDE 16 MILLION MORE FOR SECURITY AND ANTITERRORIST COSTS 9304290094 930429 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT BANK OF NOVA SCOTIA 250 MILLION OF SUBORDINATED NOTES DUE MAY 1 2003 PRICED AS 6 7/8 S AT 99911 TO YIELD 6887 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 085 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO NIAGRA MOHAWK POWER CORP FOUR MILLION COMMON SHARES PRICED AT 2225 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO OLD AMERICA STORES INC TWO MILLION COMMON SHARES PRICED AT 16 EACH THROUGH UNDERWRITERS LED BY LAZARD FRERES & CO PREFERRED INCOME MANAGEMENT FUND INC 775 MILLION OF MONEY MARKET CUMULATIVE PREFERRED STOCK WITH AN INITIAL DIVIDEND RATE OF 265 ANNUALLY THROUGH LEHMAN BROTHERS USAIR GROUP INC 10 MILLION COMMON SHARES PRICED AT 2075 EACH THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP NEW YORK STATE 850 MILLION 1993 TAX AND REVENUE ANTICIPATION NOTES WON BY SEVEN FIRMS THE NOTES WHICH ARE DUE DEC 31 1993 HAVE BEEN RATED MIG1 BY MOODY'S SP1PLUS BY S&P AND F1PLUS BY FITCH INVESTORS SERVICE INC JP MORGAN SECURITIES INC'S 275 MILLION OF NOTES ARE 275S PRICED TO YIELD 21 THE FIRM WON 100 MILLION OF THE NOTES WITH A BID SETTING THE NET INTEREST COST AT 2106 100 MILLION WITH AN NET INTEREST COST OF 2133 AND 75 MILLION WITH AN NET INTEREST COST OF 2185 MERRILL LYNCH & CO'S 125 MILLION OF NOTES ARE 25S PRICED TO YIELD 2 IN THE COMPETITIVE BIDDING EARLIER WEDNESDAY THE FIRM WON 100 MILLION OF THE NOTES WITH AN NET INTEREST COST OF 2165 AND 25 MILLION WITH AN NET INTEREST COST OF 2135 BEAR STEARNS & CO'S 100 MILLION OF NOTES ARE 275S PRICED TO YIELD 2 THEY WERE WON WITH THREE NET INTEREST COSTS RANGING FROM 2066 TO 2115 CHEMICAL SECURITIES INC'S 100 MILLION OF NOTES ARE 275S PRICED TO YIELD 2 CHEMICAL WON 50 MILLION WITH A NET INTEREST COST OF 2129 AND 50 MILLION WITH A NET INTEREST COST OF 2164 PAINEWEBBER INC'S 100 MILLION OF NOTES ARE 275S PRICED TO YIELD 205 THE FIRM WON 50 MILLION WITH A NET INTEREST COST OF 214 AND 50 MILLION WITH A NET INTEREST COST OF 216 FIRST BOSTON CORP'S 75 MILLION OF NOTES ARE 275S PRICED TO YIELD 205 THEY WERE WON WITH A NET INTEREST COST OF 2183 MORGAN STANLEY & CO'S 75 MILLION OF NOTES ARE 275S PRICED TO YIELD 205 THEY WERE WON WITH A NET INTEREST COST OF 218 FEDERAL HOME LOAN MORTGAGE CORP 400 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY PRUDENTIAL SECURITIES THE OFFERING SERIES GOLD 1531 IS BACKED BY FREDDIE MAC'S 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 665 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1492 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY MORGAN STANLEY & CO THE OFFERING SERIES 199385 IS BACKED BY 15YEAR 6 1/2 FANNIE MAE MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 715 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1475 YEARS BANCO ECONOMICO SA BRAZIL 70 MILLION OF 9 1/2 SEMIANNUAL EUROBONDS DUE DEC 20 1994 AT FIXED REOFFER PRICE OF 9948 VIA PARIBAS CAPTIAL MARKETS LTD YIELD AT REOFFER PRICE 985 MARGIN 610 BASIS POINTS ABOVE US TREASURY'S 4 1/4 NOTE DUE JANUARY 1995 FEES 1 1/4 POINTS KINGDOM OF SWEDEN SOVEREIGN 3 BILLION FRENCH FRANCS OF 7 1/4 EUROBONDS DUE MAY 19 2000 AT ISSUE FIXED REOFFER PRICE 99627 VIA BNP CAPITAL MARKETS LTD YIELD AT 732 ANNUAL SPREAD 35 BASIS POINTS ABOVE FRENCH TREASURY NOTE FEES 03 POINT REPUBLIC OF COLOMBIA SOVEREIGN 125 MILLION OF 7 1/8 SEMIANNUAL EUROBONDS DUE MAY 11 1998 AT FIXED REOFFER PRICE 99237 VIA BANKERS TRUST INTERNATIONAL YIELD AT REOFFER PRICE 731 MARGIN 215 BASIS POINTS OVER THE COMPARABLE US TREASURY NOTE FEES 7/8 POINT SPINTAB AB SWEDEN 200 MILLION OF 6 EUROBONDS DUE MAY 19 1998 AT FIXED REOFFER PRICE 99535 VIA JP MORGAN SECURITIES YIELD AT REOFFER PRICE 611 MARGIN 85 BASIS POINTS ABOVE COMPARABLE US TREASURY NOTE BONDS HAVE A SOCALLED LETTER OF COMFORT FROM THE MINISTRY OF FINANCE OF SWEDEN FEES 035 POINT URBAN MORTGAGE BANK OF THE KINGDOM OF SWEDEN SWEDEN 150 MILLION OF FLOATING RATE EURONOTES DUE MAY 25 1995 AT ISSUE AND FIXED REOFFER PRICE 9976 VIA NOMURA INTERNATIONAL PLC INTEREST FLOATS AT 0375 POINT ABOVE THE SIXMONTH LONDON INTERBANK OFFERED RATE FOR US DOLLARS FEES 01 POINT 9304290093 930429 PARTNERSHIP COMPLETES CONTINENTAL AIR BUYOUT NEW YORK AIR CANADA AND A FORT WORTH TEXAS INVESTOR GROUP COMPLETED THEIR BUYOUT OF CONTINENTAL AIRLINES INC TRIGGERING AN END TO THE CARRIER'S 29MONTH STAY UNDER BANKRUPTCYCOURT PROTECTION CONTINENTAL THUS BECOMES THE ONLY CARRIER TO SURVIVE TWO BOUTS UNDER CHAPTER 11 PROTECTION AND SPEEDS UP THE TREND OF INTERNATIONAL AIRLINES BUYING STAKES IN THEIR US COUNTERPARTS THIS IS A PARTNERSHIP THAT WILL MAKE MONEY FOR CONTINENTAL AND AIR CANADA SAID HOLLIS HARRIS AIR CANADA'S CHIEF EXECUTIVE OFFICER AT THE NEWS CONFERENCE INDEED MR HARRIS ESTIMATED THAT THE ALLIANCE COULD GENERATE BY LATE 1994 AN ADDITIONAL 400 MILLION IN ANNUAL REVENUE TO BE SPLIT BETWEEN THE TWO CARRIERS FOR AIR CANADA ALONE MR HARRIS SAID HE EXPECTS AN ADDITIONAL 25 MILLION IN ANNUAL PROFITS ROBERT FERGUSON III CONTINENTAL'S CHIEF EXECUTIVE SAID THE TWO AIRLINES DON'T EXPECT TO SELL THEIR SERVICE UNDER A SINGLE BRAND ALTHOUGH THE TWO AIRLINES WILL DO SOME JOINT ADVERTISING BOTH MEN SAY THEY'RE STILL ON THE LOOKOUT FOR OTHER INTERNATIONAL PARTNERS CONTINENTAL'S EMERGENCE AND THE COMPLETION OF THE BUYOUT HAD BEEN EXPECTED SINCE THE BANKRUPTCY JUDGE APPROVED THE REORGANIZATION PLAN IN MIDAPRIL UNDER THE PLAN AIR CANADA AND AIR PARTNERS LP AGREED TO INVEST 450 MILLION IN CONTINENTAL IN RETURN FOR A 275 STAKE EACH MOST OF THE REMAINING SHARES ARE OWNED BY THE AIRLINE'S CREDITORS WHO ARE BEING PAID PENNIES FOR EACH DOLLAR OF CLAIMS 9304290092 930429 BUSINESS BRIEFS PROPERTY TRUST OF AMERICA ACQUIRED FIVE APARTMENT COMPLEXES AND THREE UNDEVELOPED SITES IN TEXAS AND ARIZONA FOR A TOTAL OF 895 MILLION PROPERTY TRUST ALSO SIGNED AGREEMENTS TO ACQUIRE AN ADDITIONAL 3799 UNITS VALUED AT A TOTAL OF 110 MILLION AND IS AWAITING THE OUTCOME OF DUE DILIGENCE BY THE UNIDENTIFIED SELLERS BEFORE CLOSING THOSE TRANSACTIONS GENZYME CORP'S DIAGNOSTIC PRODUCTS DIVISION ACQUIRED VIROTECH SYSTEMDIAGNOSTIKA GMBH OF GERMANY FOR ABOUT 10 MILLION MIDAMERICAN WASTE SYSTEMS INC'S LEASE WITH THE CAMPO BAND OF MISSION INDIANS FOR A NEW LANDFILL IN SAN DIEGO COUNTY CALIF WAS APPROVED BY THE INTERIOR DEPARTMENT TERMS WEREN'T DISCLOSED GRAPHIC INDUSTRIES INC'S IPD PRINTING & DISTRIBUTING UNIT BOUGHT THE ASSETS OF EQUIFAX SUPPLY SERVICE CENTER A DIVISION OF EQUIFAX INC THE DEAL WAS TRANSACTED IN CASH BUT TERMS WEREN'T DISCLOSED FLORIDA PROGRESS CORP A UTILITY HOLDING COMPANY SAID ITS COAL MINING AND TRANSPORTATION DIVISION IS BUYING STEEL PROCESSING SERVICES INC A PRIVATELY HELD RECYCLER AND RAILCAR REPAIRER IN ALBERTVILLE ALA TERMS WEREN'T DISCLOSED 9304290091 930429 BUSINESS BRIEF GM'S NONAUTOMOTIVE UNITS POST DROP OF 43 IN COMBINED 1STPERIOD PROFIT DETROIT COMBINED EARNINGS OF GENERAL MOTORS CORP'S NONAUTOMOTIVE SUBSIDIARIES FELL 43 IN THE FIRST QUARTER TO 5938 MILLION COMPARED WITH YEAREARLIER RESULTS BEFORE AN ACCOUNTING CHARGES THE DECREASE REFLECTS A SHARP DROP IN ACTIVITY AT THE AUTO MAKER'S FINANCING ARM GM WILL REPORT ITS OVERALL FIRSTQUARTER RESULTS TODAY AND ANALYSTS EXPECT A SHARP IMPROVEMENT OVER YEAREARLIER RESULTS GM'S EUROPEAN OPERATIONS ARE EXPECTED TO SHOW A DROP IN EARNINGS REFLECTING AN 184 DROP IN SALES BUT NORTH AMERICAN VEHICLE OPERATIONS ARE SHOWING SIGNS OF FASTERTHANEXPECTED IMPROVEMENT ANALYSTS LOOK FOR GM TO REPORT FIRSTQUARTER EARNINGS OF 250 MILLION TO 370 MILLION OR 35 TO 55 CENTS A SHARE COMPARED WITH YEAREARLIER NET INCOME OF 1793 MILLION OR TWO CENTS A SHARE BEFORE A BIG CHARGE RELATED TO RETIREE MEDICAL BENEFITS THE LATEST FIRSTQUARTER RESULTS FOR GENERAL MOTORS ACCEPTANCE CORP GM HUGHES ELECTRONICS CORP AND ELECTRONIC DATA SYSTEMS CORP COMPARE WITH YEAREARLIER CUMULATIVE EARNINGS OF 6206 MILLION BEFORE ONETIME ACCOUNTING CHARGES FOR RETIREE BENEFITS INCLUDING THE CHARGES THE GM SUBSIDIARIES POSTED A CUMULATIVE LOSS OF 5341 MILLION DURING THE 1992 FIRST QUARTER OF THE THREE GM UNITS ONLY GMAC REPORTED A DECLINE IN PROFIT THE AUTO MAKER'S FINANCING OPERATIONS EARNED 2841 MILLION IN THE FIRST QUARTER DOWN 19 FROM YEAREARLIER EARNINGS OF 3491 MILLION BEFORE ACCOUNTING CHARGES NONCASH CHARGES OF 2826 MILLION REDUCED YEAREARLIER EARNINGS TO 665 MILLION A SPOKESWOMAN FOR GMAC SAID THE COMPANY FINANCED OR LEASED FEWER VEHICLES IN THE FIRST QUARTER IN ANTICIPATION OF DECREASED ACCESS TO SHORTTERM CAPITAL FROM COMMERCIAL PAPER BORROWINGS GMAC FINANCED OR LEASED 282000 VEHICLES IN THE US DURING THE FIRST QUARTER A 32 DROP FROM 413000 VEHICLES A YEAR EARLIER GMAC BEGAN SCALING BACK ITS COMMERCIAL PAPER BORROWING LAST YEAR AS ITS DEBT RATINGS DECLINED REFLECTING POOR PARENT COMPANY PERFORMANCE GM HUGHES ELECTRONICS REPORTED FIRSTQUARTER EARNINGS OF 1583 MILLION A 14 INCREASE FROM YEAREARLIER EARNINGS OF 1384 MILLION BEFORE ONETIME ACCOUNTING CHARGES AFTER ACCOUNTING FOR RETIREE BENEFITS GM HUGHES HAD A LOSS OF 7337 MILLION DURING THE 1992 FIRST QUARTER 9304290090 930429 AMERICAN BARRICK SETS PACT ON UTAH MINE TORONTO AMERICAN BARRICK RESOURCES CORP SAID IT SETTLED A LONGSTANDING OWNERSHIP BATTLE AT ITS MERCUR GOLD MINE IN UTAH ENDING A LEGAL DISPUTE THAT HAS CAST A SHADOW ON THE COMPANY'S STOCK AMERICAN BARRICK A TORONTO GOLD PRODUCER SAID IT AGREED TO PAY 47 MILLION FOR GOLD STANDARD INC'S INTEREST IN THE MERCUR MINE AND A RELEASE FROM FURTHER LITIGATION GOLD STANDARD CURRENTLY HAS THE RIGHT TO RECEIVE 15 OF THE NET INCOME FROM MERCUR ONCE CAPITAL COSTS TO DEVELOP THE MINE ARE RECOVERED WITH INTEREST THE SALT LAKE CITY CONCERN HAD SUED AMERICAN BARRICK CLAIMING IT WAS ENTITLED TO A LARGER SHARE OF THE MINE'S PROFITS A FINAL AGREEMENT IS EXPECTED TO BE REACHED BY NEXT MONTH THE MERCUR MINE LAST YEAR PRODUCED 121000 OUNCES OF GOLD VALUED AT SOME 43 MILLION AT CURRENT MARKET PRICES WE DECIDED TO REMOVE THE NUISANCE VALUE OF THE LAWSUIT SAID GREGORY WILKINS AMERICAN BARRICK'S CHIEF FINANCIAL OFFICER ANALYSTS WELCOMED THE RESOLUTION OF THE MERCUR MINE DISPUTE GIVING AMERICAN BARRICK'S SHARE PRICE A LIFT ON THE NEW YORK STOCK EXCHANGE THE SHARES CLOSED AT 21375 A SHARE UP 125 IN OVERTHECOUNTER TRADING GOLD STANDARD SHARES ENDED AT 1 A SHARE DOWN 1875 CENTS 9304290089 930429 MESA REACHES ACCORD WITH ITS NOTEHOLDERS TO RESTRUCTURE DEBT DALLAS MESA INC SAID IT REACHED AN AGREEMENT WITH CERTAIN NOTEHOLDERS REGARDING THE RESTRUCTURING OF 600 MILLION OF DEBT MESA A NATURALGAS COMPANY AND CERTAIN NOTEHOLDERS HAD BEEN NEGOTIATING SINCE OCTOBER 1992 OVER THE TERMS OF AN EXCHANGE OFFER TO ADDRESS NEARTERM LIQUIDITY PROBLEMS THE TERMS OF THE PRELIMINARY AGREEMENT ALLOW THE 12 AND 135 NOTEHOLDERS TO EXCHANGE THESE NOTES PLUS 2925 MILLION IN ACCRUED INTEREST DUE MAY 1 FOR A PACKAGE OF NEW SECURITIES THE PACKAGE CONSISTS OF 4357 MILLION OF SECURED 1275 SECURED NOTES DUE JUNE 30 1998 150 MILLION OF 1275 UNSECURED NOTES DUE JUNE 30 1996 30 MILLION OF 0 CONVERTIBLE NOTES AND 135 MILLION IN CASH THIS PRELIMINARY AGREEMENT WILL RELIEVE MESA'S IMMEDIATE CASHFLOW PROBLEMS IF ALL BONDS ARE EXCHANGED MESA WILL DEFER ABOUT 77 MILLION OF INTEREST PAYMENTS UNTIL DECEMBER OF 1995 WHEN THE FIRST PAYMENT OF 48 MILLION WILL BE DUE SAID A MESA SPOKESMAN THIS GIVES US BREATHING ROOM UNTIL NATURALGAS PRICES IMPROVE OVER THE LONG TERM HE SAID MESA IS HIGHLY LEVERAGED WITH ABOUT 13 BILLION IN LONGTERM DEBT MOST OF THAT DEBT WAS INCURRED TO FINANCE ACQUISITIONS OF NATURAL GAS RESERVES IF THE EXCHANGE OFFER IS COMPLETED MESA'S LONGTERM DEBT WOULD BE COMPLETELY RESTRUCTURED THE COMPANY SAID MESA ALSO SAID THE AGREEMENT IS PRELIMINARY AND SUBJECT TO VARIOUS CONDITIONS AND OTHER REQUIREMENTS INCLUDING THE CONSENT OF MESA'S BANK LENDERS 9304290088 930429 JESSE JACKSON FORMS GROUP TO FIGHT BIAS BY FINANCIAL FIRMS NEW YORK A GROUP FORMED BY THE REV JESSE JACKSON WILL RATE FINANCIAL INSTITUTIONS ON HOW WELL THEY HELP INNERCITY AND RURAL AREAS DEVELOP THE RAINBOW COMMISSION FOR FAIRNESS IN THE FINANCIAL SERVICES INDUSTRY WILL PRESS FINANCIAL FIRMS TO INVEST IN URBAN AREAS PRACTICE AFFIRMATIVE ACTION AND END REDLINING THE PRACTICE OF DISCRIMINATING AGAINST MINORITIES IN THE SALE OF MORTGAGE LOANS AND INSURANCE POLICIES MR JACKSON DESCRIBED THE GROUP'S GOAL IN AN UNSCHEDULED ANNOUNCEMENT AT THE ANNUAL MEETING OF PRIMERICA CORP WHERE HE SPOKE AS A SHAREHOLDER CENTRAL TO ITS EFFORT WILL BE A SYSTEM TO RATE COMPANIES BASED ON STANDARDS ESTABLISHED BY THE COMMISSION THE GROUP WILL ISSUE THE RATINGS BASED ON ANSWERS TO QUESTIONNAIRES NOW BEING SENT TO BANKS BROKERAGE FIRMS INSURANCE COMPANIES AND PENSION FUNDS THE QUESTIONNAIRES ASK ABOUT SUCH MATTERS AS INVESTMENT IN SOUTH AFRICA AND WHETHER A COMPANY HAS EVER MANAGED A FINANCIAL OFFERING FOR A MINORITYOWNED VENTURE THE REV JACKSON WHO CAMPAIGNED FOR THE DEMOCRATIC NOMINATION FOR PRESIDENT IN 1984 AND 1988 SAID OUR PLAN IS TO CHALLENGE PENSION FUNDS INVESTMENT BANKING FIRMS AND FINANCIAL MARKETS ON WALL STREET AND ACROSS THE COUNTRY TO EXAMINE THE WAY THEY DO BUSINESS WITH URBAN AMERICA THE COMMISSION WILL BE PART OF THE RAINBOW COALITION THE ADVOCACY GROUP FOUNDED AND HEADED BY MR JACKSON PERCY SUTTON CHAIRMAN OF INNER CITY ENTERPRISES WILL BE CHAIRMAN OF THE GROUP 9304290087 930429 LAW LEGAL BEAT COURT SET UP IN 1971 TO HANDLE PRICE CONTROL CASES IS ABOLISHED BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL DESPITE ITS NAME THE TEMPORARY EMERGENCY COURT OF APPEALS HAS BEEN AN ENDURING INSTITUTION IN WASHINGTON THE COURT KNOWN AS TECA WAS SET UP IN 1971 TO SPECIALIZE IN LAWSUITS ARISING FROM SHORTTERM PRICE CONTROLS IMPOSED BY THE NIXON ADMINISTRATION BUT THE CONTROLS LASTED LONGER THAN EXPECTED UNTIL THE 1981 DECONTROL OF OIL PRICES AND THE COURT HUNG IN THERE LONGER THAN THAT UNTIL TODAY TO BE EXACT WE CALLED IT THE PERMANENT TEMPORARY EMERGENCY COURT OF APPEALS QUIPS REYNALDO G GARZA A SENIOR FEDERAL APPEALS COURT JUDGE IN BROWNSVILLE TEXAS AND THE COURT'S LAST CHIEF JUDGE WITH SOME PEOPLE PROPOSING THAT THE CLINTON ADMINISTRATION BRING BACK PRICE CONTROLS AS PART OF HEALTHCARE REFORM THE LITIGATION THAT DROVE TECA'S ENDURANCE IS WORTH NOTING SAY LAWYERS AND OTHERS FAMILIAR WITH THE OPERATION ADMINISTRATION OFFICIALS SAY ANY CONTROLS WOULD BE TEMPORARY BUT LIMITED CONTROLS HAVE A WAY OF HANGING AROUND YOU KNOW THE REMNANTS OF A PRICE CONTROL ERA GO ON FOR YEARS SAYS JUDGE GARZA WE HAVE NOT HAD THEM FOR YEARS AND WE ARE STILL GETTING CASES FILED DEPARTMENT OF ENERGY OFFICIALS ARE STILL PURSUING A NUMBER OF OIL COMPANIES FOR ALLEGEDLY VIOLATING PRICE CONTROLS THAT WERE IN EFFECT BETWEEN 1973 AND 1981 INCLUDING ONE CASE VALUED AT OVER 1 BILLION AGAINST AN OCCIDENTAL PETROLEUM CORP UNIT MEANWHILE THOUSANDS OF ENERGY USERS HAVE APPLICATIONS PENDING WITH THE DEPARTMENT FOR A PIECE OF AN ESTIMATED 700 MILLION IN OIL OVERCHARGES THAT WAS RECOUPED YEARS AGO WITH THE DEMISE OF TECA ANY APPEAL FROM SUCH CASES WILL BE HEARD BY THE US COURT OF APPEALS FOR THE FEDERAL CIRCUIT ENERGY DEPARTMENT OFFICIALS SAY IT COULD TAKE UP TO FIVE YEARS TO RESOLVE THE REMAINING CASES ACCORDING TO CORRESPONDENCE THIS MONTH BETWEEN THE DEPARTMENT AND HOUSE ENERGY AND COMMERCE COMMITTEE CHAIRMAN REP JOHN DINGELL THAT WOULD BE IN TIME FOR THE 25TH ANNIVERSARY OF WHEN THE CONTROLS WERE INSTITUTED AFTER THE ARAB OIL EMBARGO TECA WAS MODELED AFTER THE EMERGENCY COURT OF APPEALS SET UP TO ARBITRATE DISPUTES ARISING FROM PRICE CONTROLS DURING WORLD WAR II AND WHICH LASTED 15 YEARS TECA HAD NO PERMANENT COURTROOM AND ITS JUDGES WERE FOR THE MOST PART RETIRED FEDERAL JUDGES DESIGNATED TO HEAR CASES BY THE CHIEF JUSTICE OF THE US THE POLICY OF SELECTING OLDER JUDGES BECAME A PROBLEM SAYS JUDGE GARZA SINCE I BECAME CHIEF JUDGE I HAVE LOST FIVE OR SIX TO DEATH THE COURT HEARD AN ESTIMATED 700 CASES AMONG OTHER THINGS IT RULED ON WHETHER THE PRESEASON SALE OF UNIVERSITY OF SOUTHERN CALIFORNIA FOOTBALL TICKETS WOULD BE SUBJECT TO PRICE REGULATIONS EVEN THOUGH THE SALES PREDATED THE CONTROLS THE ANSWER YES BECAUSE THE SERVICE THE PLAYING OF FOOTBALL GAMES CAME AFTER THE RULES WERE ADOPTED ONE REASON THE CASES HAVE DRAGGED ON SAY LAWYERS AND GOVERNMENT OFFICIALS INVOLVED IN THE PROCESS IS THAT ENFORCEMENT DIDN'T BEGIN IN EARNEST UNTIL AFTER THE CONTROLS HAD EXPIRED REFLECTING THE FACT THAT THE REGULATIONS WERE CONSTANTLY CHANGING ANOTHER FACTOR WAS THAT CONGRESS ENACTED LEGISLATION THAT GAVE THE INDUSTRY MULTIPLE CHANCES TO APPEAL GOVERNMENT FINDINGS OF PRICECONTROL VIOLATIONS AND IT TOOK FULL ADVANTAGE SOMETIMES IT TAKES 10 YEARS TO GET OUT OF THE ADMINISTRATIVE PROCESS BEFORE A CASE CAN GO TO COURT SAYS DAVID G WILSON A WASHINGTON LAWYER AND FORMER DEPUTY GENERAL COUNSEL OF THE FORMER FEDERAL ENERGY ADMINISTRATION IN ITS LAST ACT TECA IS EXPECTED TODAY TO RULE IN A CASE ON WHETHER THE FEDERAL ENERGY REGULATORY COMMISSION SHOULD BE PENALIZED FOR TAKING NEARLY THREE YEARS TO DECIDE A CASE AGAINST MAPCO INTERNATIONAL INC IN RECENT YEARS THE COURT HAS BEEN WINDING DOWN AND THERE HAS BEEN AN ATTEMPT TO PUT IT OUT OF BUSINESS FOR YEARS IT HAS LONG BEEN HATED BY THE INDUSTRY AND STARTING IN 1987 FEDERAL COURT POLICYMAKERS HAVE RECOMMENDED ON BUDGET GROUNDS THAT IT BE ABOLISHED OR ITS JURISDICTION ASSUMED BY OTHER COURTS SUCH ACTIONS HAD BEEN BLOCKED IN LARGE MEASURE BY THE MR DINGELL AN OIL INDUSTRY CRITIC WE HAD A CLERK'S OFFICE IN WASHINGTON WITH FOUR PEOPLE IN IT AND WE WERE GETTING 15 OR 16 CASES A YEAR AND IT WAS COSTING ABOUT 200000 AND SOME TO KEEP THAT OFFICE UP SAYS JUDGE GARZA LAST FALL THE OPPOSITION INSERTED LANGUAGE ABOLISHING THE COURT IN AN OMNIBUS FEDERAL COURT BILL WHOSE MAIN PURPOSE WAS TO GIVE US NATIONALS VICTIMIZED BY INTERNATIONAL TERRORISM THE RIGHT TO SUE IN US COURTS MR DINGELL SAYS HE MISSED THE LANGUAGE UNTIL THE LAST MINUTE AND PRESIDENT BUSH SIGNED THE BILL INTO LAW IN OCTOBER MR DINGELL SAYS HE OBTAINED ASSURANCES FROM THE BUSH ADMINISTRATION THAT TECA PRECEDENTS WOULD BE RESPECTED AS PENDING CASES ARE HEARD IN OTHER COURTS IN A LETTER TO THEN ENERGY SECRETARY JAMES WATKINS HE SAID ABOLITION OF TECA WAS PREMATURE A TRUSTEE CAN BE HELD LIABLE UNDER THE SUPERFUND LAW FOR THE ENTIRE COST OF CLEANING UP POLLUTED PROPERTY IT MANAGES ON BEHALF OF THE BENEFICIARIES OF A TRUST A FEDERAL JUDGE RULED US DISTRICT JUDGE SAMUEL CONTI MADE THE RULING THIS MONTH IN A CASE INVOLVING A DUMP SITE IN PHOENIX THE SITE IS PART OF AN ESTATE OF A DECEASED REAL ESTATE OWNER FOR WHICH BANC ONE ARIZONA CORP FORMERLY KNOWN AS VALLEY NATIONAL BANK SERVES AS A TRUSTEE EARLIER THIS YEAR IN AN OPINION THAT RATTLED THE BANKING COMMUNITY JUDGE CONTI RULED THAT TRUSTEES AREN'T EXEMPT FROM LIABILITY UNDER THE SUPERFUND LAW BUT THAT DECISION DIDN'T ADDRESS THE EXTENT OF THE TRUSTEE'S LIABILITY IN HIS LATEST RULING JUDGE CONTI REJECTED THE ARGUMENTS MADE BY BANC ONE AND SEVERAL BANKING AND TRUST GROUPS THAT THE LIABILITY OF TRUSTEES SHOULD BE LIMITED TO THE EXTENT OF THE ASSETS IN A TRUST INSTEAD HE SAID TRUSTEES SUCH AS BANC ONE WHICH LEASED OUT THE PROPERTY IN ITS TRUST TO A GARBAGE COMPANY ARE POTENTIALLY LIABLE FOR THE ENTIRE COST OF THE CLEANUP IN THE PHOENIX CASE THE BANK'S POTENTIAL CLEANUP LIABILITY IS ESTIMATED AT 60 MILLION A SPOKESMAN FOR BANC ONE ARIZONA A UNIT OF COLUMBUS OHIOBASED BANC ONE CORP DECLINED TO COMMENT ON THE RULING ALTHOUGH DISTRICT JUDGES' DECISIONS HAVE LITTLE PRECEDENTIAL VALUE THE RULINGS IN THIS CASE ARE SIGNIFICANT TO THE INDUSTRY BECAUSE THEY HAVE EXPOSED AN UNEXPECTED ACHILLES HEEL FOR BANKS UNDER THE SUPERFUND LAW BANKS HAVE SPENT MUCH OF THEIR ENERGY IN RECENT YEARS ATTEMPTING TO LIMIT THEIR LIABILITY FOR CLEANUP COSTS OF PROPERTY IN WHICH THEY HAVE A SECURED INTEREST FOR A LOAN LAST YEAR THAT EFFORT PAID OFF WHEN THE ENVIRONMENTAL PROTECTION AGENCY ISSUED RULES THAT MADE IT CLEAR SUCH SECURED INTERESTS SHOULDN'T NECESSARILY RESULT IN SUPERFUND LIABILITY EVEN IF A BANK FORECLOSES ON THE PROPERTY NOW BANKING LAWYERS SAY A SIMILAR EFFORT MAY BE REQUIRED TO GET THE EPA TO ADDRESS TRUSTEES' LIABILITY WHO'S NEWS NEW JERSEY ATTORNEY GENERAL ROBERT DEL TUFO WILL JOIN NEW YORK LAW FIRM SKADDEN ARPS SLATE MEAGHER & FLOM AS A PARTNER MR DEL TUFO IS EXPECTED TO MAKE THE CHANGE LATER THIS YEAR AFTER CONCLUDING CERTAIN INVESTIGATIONS AT THE ATTORNEY GENERAL'S OFFICE PETER MULLEN EXECUTIVE PARTNER SAID MR DEL TUFO WILL HELP THE LAW FIRM ESTABLISH A NEW JERSEY OFFICE EXPECTED TO OPEN WITHIN A MONTH IN NEWARK MR DEL TUFO ALSO A FORMER US ATTORNEY FOR NEW JERSEY WILL PRACTICE OUT OF THE LAW FIRM'S NEW YORK AND NEW JERSEY OFFICES JONATHAN M MOSES CONTRIBUTED TO THIS ARTICLE 9304290086 930429 WHO'S NEWS MAXUM HEALTH PICKS HAMMOND A DIRECTOR TO BECOME CHAIRMAN DALLAS MAXUM HEALTH CORP STRUGGLING WITH A DOWNTURN IN THE MOBILE MEDICAL IMAGING BUSINESS SAID IT NAMED GAINES W HAMMOND A DIRECTOR TO SUCCEED WILLIAM L MACKNIGHT AS CHAIRMAN A SPOKESWOMAN FOR THE THE MEDICAL DIAGNOSTIC IMAGING COMPANY SAID MR MACKNIGHT 41 YEARS OLD STEPPED DOWN AS CHAIRMAN BECAUSE THE BOARD DECIDED IT WANTED A NONEXECUTIVE CHAIRMAN HE REMAINS AS MAXUM'S CHIEF EXECUTIVE OFFICER AND PRESIDENT SHE SAID THE COMPANY SAID DR HAMMOND 44 IS A PRACTICING UROLOGIST AND HAS BEEN A DIRECTOR OF THE COMPANY SINCE 1989 IN ADDITION TO HIS EXECUTIVE DUTIES THE COMPANY SAID MR MACKNIGHT WILL ALSO JOIN A NEWLY FORMED COMMITTEE THAT IS COORDINATING A RESTRUCTURING OF THE COMPANY THE COMMITTEE IS ALSO CHARGED WITH REPAIRING RELATIONS WITH CREDITORS AND EQUIPMENT LESSORS THE COMPANY SAID MAXUM'S CREDITORS BARRED IT FROM FURTHER BORROWING UNDER A 55 MILLION CREDIT LINE LAST MONTH AFTER THE COMPANY SAID IT EXPECTED TO POST A LOSS FOR THE FOURTH QUARTER OF 1992 NEWS THAT SENT ITS STOCK PLUMMETING 52 ON MARCH 1 THE COMPANY SAID AT THE TIME THAT THE CREDITORS' RESTRICTIONS THREATENED ITS ABILITY TO PAY SOME OF ITS BILLS MAXUM LAST WEEK REPORTED A FOURTHQUARTER NET LOSS OF 74 MILLION OR 256 A SHARE COMPARED WITH NET INCOME OF 309000 OR 10 CENTS A SHARE A YEAR EARLIER THE RECENT QUARTER INCLUDED A 75 MILLION PRETAX CHARGE RELATED TO RESTRUCTURING AND A WRITEDOWN OF ASSETS 9304290085 930429 AMDAHL POSTS BIG LOSS IN 1ST QUARTER ON LOWER REVENUE 243 MILLION CHARGE BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL AMDAHL CORP POSTED A HUGE FIRSTQUARTER NET LOSS HAMMERED BY DEPRESSED SALES OF ITS MAINFRAME COMPUTERS AND A 243 MILLION RESTRUCTURING CHARGE DESPITE THE DISAPPOINTING EARNINGS E JOSEPH ZEMKE AMDAHL'S PRESIDENT AND CHIEF EXECUTIVE OFFICER REMAINED OPTIMISTIC THAT THE SUNNYVALE CALIF MAKER OF MAINFRAME COMPUTERS WOULD BOUNCE BACK WE CONTINUE TO BE CONFIDENT IN THIS MARKETPLACE BUT WE HAVE NO ILLUSIONS IN WHAT IT TAKES TO COMPETE MR ZEMKE TOLD A MEETING OF SECURITIES ANALYSTS YESTERDAY FOR THE QUARTER ENDED MARCH 26 THE MAINFRAME COMPUTER MAKER POSTED A NET LOSS OF 2397 MILLION OR 212 A SHARE COMPARED WITH NET INCOME OF 44 MILLION OR FOUR CENTS A SHARE A YEAR EARLIER THE LOSS INCLUDED A RESTRUCTURING CHARGE PRIMARILY FOR PLANT SHUTDOWNS AND STAFF CUTS REVENUE FELL 24 TO 3807 MILLION FROM 4979 MILLION AMDAHL WARNED IN MARCH THAT IT EXPECTED TO REPORT A BIGGERTHANEXPECTED FIRSTQUARTER NET LOSS BECAUSE OF SHRINKING SALES AND FALLING PRICES IN LATE TRADING ON THE AMERICAN STOCK EXCHANGE YESTERDAY AMDAHL CLOSED AT 550 A SHARE DOWN 125 CENTS YESTERDAY AMDAHL ALSO ANNOUNCED IT WAS SLASHING ITS ANNUAL DIVIDEND TO FIVE CENTS A SHARE FROM 10 CENTS A SHARE AS A WAY TO CONSERVE CASH AND PRESERVE ITS CAPITAL BASE MR ZEMKE SAID IN A CONFERENCE CALL THAT AMDAHL CONTINUES TO LOOK FOR WAYS TO SLASH COSTS IMPROVE GROSS PROFIT MARGINS WHICH DROPPED TO 22 IN THE QUARTER FROM 35 A YEAR EARLIER AND BRING MANUFACTURING IN LINE WITH DEMAND WHICH HAS WEAKENED IN RECENT MONTHS LAST WEEK THE COMPANY ANNOUNCED IT WOULD DISMISS 1100 EMPLOYEES WHICH WERE IN ADDITION TO ABOUT 150 EMPLOYEES WHO WERE DISMISSED IN FEBRUARY AMDAHL IS ALSO LOOKING FOR WAYS TO INCREASE REVENUE BY SUCH MEASURES AS EMPHASIZING ITS SOFTWARE PRODUCTS AND TECHNICAL SUPPORT SERVICES AND BY ELIMINATING OVERLAP IN ITS OPERATIONS AND BY IMPROVING MANUFACTURING EFFICIENCY MR ZEMKE SAID SOME OF THOSE MEASURES WILL REDUCE MANUFACTURING CAPACITY HE SAID BUT IF THE BUSINESS WERE TO TURN UP WE COULD RESPOND QUICKLY AND IN A COSTEFFECTIVE WAY MR ZEMKE DECLINED TO PREDICT WHEN AMDAHL WOULD RETURN TO PROFITABILITY CITING UNCERTAINTIES IN DEMAND AND PRICING FALLING PRICES WHICH HAVE DROPPED AN ESTIMATED 30 DURING THE PAST 12 MONTHS AND SLOWED DEMAND HAVE BATTERED THE MARKET FOR MAINFRAME COMPUTERS OTHER MAINFRAME MAKERS HAVE BEEN HURT MOST NOTICEABLY INTERNATIONAL BUSINESS MACHINES CORP WHICH REPORTED LAST WEEK A HUGE FIRSTQUARTER LOSS THE MARKET FOR THE GIANT EXPENSIVE COMPUTERS ALSO HAS BEEN HURT BY A TREND TOWARD THE USE OF DESKTOP COMPUTERS THAT ARE LINKED IN NETWORKS WITH MIDSIZE COMPUTERS YESTERDAY MR ZEMKE SAID THE IDEA THAT SUCH NETWORKS MADE MAINFRAMES OUTDATED FAR EXCEEDED REALITY AND THAT SUCH THINKING DEPRESSED AMDAHL'S SALES BY MAKING POTENTIAL CUSTOMERS RECONSIDER POSSIBLE PURCHASES MR ZEMKE SAID THAT SALES DURING THE SEASONALLY WEAK FIRST QUARTER WERE ALSO DAMAGED BY A WEAK EUROPEAN ECONOMY AND BY ANNOUNCEMENTS BY AMDAHL AND IBM OF NEW PRODUCTS WHICH ALSO MAKE CUSTOMERS RECONSIDER PLANNED PURCHASES INDUSTRY ANALYSTS AGREE THAT THE MAINFRAME MARKET WHILE SMARTING IS STILL HUGE HOWEVER THEY SAY IT IS UNLIKELY THAT IT WILL EVER BE AS LUCRATIVE AS IT WAS IN THE PAST ROBERT DJURDJEVIC AN ANALYST WITH ANNEX RESEARCH SAID THAT FOR AMDAHL THE MARKETPLACE IS CHANGING AND THEY HAVE TO LEARN HOW TO CHANGE WITH IT 9304290084 930429 PAINEWEBBER UNIT SUFFERS A MASS DEFECTION BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PAINEWEBBER GROUP INC HAS BEEN HIT BY A MASS DEFECTION OF EXECUTIVES AND PORTFOLIO MANAGERS AT ITS BIG MONEYMANAGEMENT UNIT AT LEAST SEVEN EXECUTIVES AND PORTFOLIO MANAGERS AND SEVEN PORTFOLIO ASSISTANTS AND OTHER SUPPORT PERSONNEL HAVE QUIT PAINEWEBBER'S MITCHELL HUTCHINS INSTITUTIONAL INVESTORS INC UNIT WHICH MANAGES 12 BILLION IN ASSETS FOR PENSION FUNDS PEOPLE FAMILIAR WITH THE FIRM SAY MOST OF THEM HAVE LEFT IN THE PAST FEW DAYS AT LEAST THREE OF THE EXECUTIVES INCLUDING THE UNIT'S PRESIDENT STEPHEN E CANTER AND CHIEF INVESTMENT OFFICER EMAD A ZIKRY HAVE BEEN HIRED BY THE US UNIT OF KLEINWORT BENSON GROUP PLC THE LONDONBASED INVESTMENT BANK THE DEPARTURES REPRESENTING ABOUT ONEQUARTER OF THE INSTITUTIONAL MANAGEMENT UNIT'S PORTFOLIO MANAGERS STUNNED PAINEWEBBER OFFICIALS THOUGH THE UNIT HANDLES ONLY PART OF THE 40 BILLION MANAGED BY MITCHELL HUTCHINS PAINEWEBBER EXECUTIVES CONCEDE THE DEPARTURES WILL BE A BLOW FOR THE FIRM WHICH INCREASINGLY DEPENDS ON FEE INCOME FOR ITS BUSINESS THE MASS DEFECTION IS ONE OF THE BIGGEST AT A WALL STREET MONEYMANAGEMENT UNIT IN RECENT YEARS BROKERAGE EXECUTIVES SAY INDEED PAINEWEBBER HAD TOLD ITS EXECUTIVES IT WILL FILE SUIT AGAINST MESSRS CANTER ZIKRY AND ONE OTHER DEPARTING EXECUTIVE TODAY IN A NEW YORK STATE COURT ALLEGING THAT THE EXECUTIVES IMPROPERLY REMOVED CUSTOMER LISTS AND OTHER SENSITIVE DOCUMENTS A PAINEWEBBER SPOKESWOMAN DECLINED TO COMMENT AS DID AN OFFICIAL AT KLEINWORT BENSON MESSRS CANTER AND ZIKRY COULDN'T BE REACHED FOR COMMENT THE PAIR WILL JOINTLY HEAD THE NORTH AMERICAN INVESTMENTMANAGEMENT BUSINESS OF KLEINWORT BENSON INVESTMENT INTERNATIONAL LTD WHICH CURRENTLY MANAGES ABOUT 600 MILLION FOR US INSTITUTIONAL CLIENTS THE DEPARTURES WERE SOMEWHAT CONTENTIOUS EVEN FOR WALL STREET PEOPLE FAMILIAR WITH THE MATTER SAY SENIOR PAINEWEBBER EXECUTIVES CONFRONTED MESSRS CANTER AND ZIKRY LATE LAST WEEK AFTER HEARING ABOUT THE POSSIBLE DEFECTIONS AT WHICH POINT THE PAIR ANNOUNCED THEIR DEPARTURES MANY OF THE SUPPORT PERSONNEL HAVEN'T FORMALLY RESIGNED BUT THEY HAVE FAILED TO SHOW UP AT THEIR DESKS IN RECENT DAYS THE PEOPLE SAY MR CANTER HAS LONG WANTED TO OWN OR RUN A MONEYMANAGEMENT FIRM BUT WAS REPEATEDLY REBUFFED BY PAINEWEBBER EXECUTIVES AT THE FIRM SAY BUT MR CANTER ALSO WAS SUPPORTED AND ENCOURAGED TO BUILD UP THE INSTITUTIONAL MANAGEMENT UNIT THE EXECUTIVES STRESS AMONG THE OTHER MITCHELL HUTCHINS EXECUTIVES WHO HAVE RECENTLY DEPARTED ARE PORTFOLIO MANAGERS THOMAS GOEPFERT ROBERT MACKEY T KIRKHAM BARNEBY DAVID JOHNSON AND GREGORY HOPPER PAINEWEBBER OFFICIALS CONFIRMED THE DEPARTURES OF THE EMPLOYEES ALL OF WHOM MANAGED BONDS FOR INSTITUTIONAL CLIENTS NONE OF THE MANAGERS COULD BE REACHED TO COMMENT NEITHER MITCHELL HUTCHINS'S MUTUAL FUND OPERATIONS NOR INVESTMENTADVISORY BUSINESS CATERING TO INDIVIDUAL INVESTORS IS AFFECTED BY THE DEPARTURES PEOPLE FAMILIAR WITH THE MATTER SAY THEY SAY THE DEFECTIONS WERE LIMITED TO THE INSTITUTIONAL MANAGEMENT UNIT'S FIXEDINCOME GROUP WHICH MANAGES ABOUT 4 BILLION PEOPLE FAMILIAR WITH PAINEWEBBER PLAY DOWN THE FINANCIAL IMPACT SAYING THE UNIT GENERATED ONLY ABOUT 9 MILLION IN ANNUAL REVENUE OF THAT ABOUT 5 MILLION TO 6 MILLION IS AT RISK OF BEING LOST BECAUSE OF THE DEPARTURES STILL THE DEPARTURES COULD LEAD TO SOME FURTHER LOST BUSINESS FOR THE FIRM WALL STREET EXECUTIVES SAY SO FAR ONE CLIENT TEMPORARILY HAS REMOVED A 60 MILLION ACCOUNT FROM MITCHELL HUTCHINS UNTIL THE CLIENT REVIEWS THE MATTER PEOPLE FAMILIAR WITH THE FIRM SAY PAINEWEBBER WILL NAME JOYCE FENSTERSTOCK PRESIDENT OF MITCHELL HUTCHINS MUTUAL FUNDS TO THE ADDITIONAL TITLE OF PRESIDENT OF MITCHELL HUTCHINS INSTITUTIONAL INVESTORS PEOPLE FAMILIAR WITH THE MATTER SAY MS FENSTERSTOCK WHO SUCCEEDS MR CANTER COULDN'T BE REACHED FOR COMMENT MEANWHILE THE FIRM WILL APPOINT AN INVESTMENT COMMITTEE LED BY ELLEN GRIGGS TO MANAGE THE MONEY IN THE INSTITUTIONAL UNIT THE PEOPLE SAY 9304290083 930429 ECONOMY US WILL STROKE GERMANY JAPAN IN BID FOR MORE ANTISLUMP ACTION FROM THEM BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US MESSAGE TO GERMANY AND JAPAN AT TODAY'S MEETING OF FINANCE MINISTERS AND CENTRAL BANKERS IS SIMPLE YOU'RE MOVING IN THE RIGHT DIRECTION BUT YOU'VE GOT TO DO MORE TO GET THE WORLD ECONOMY OUT OF ITS SLUMP THIS CLINTON ADMINISTRATION AGENDA NOT ALL THAT DIFFERENT FROM THAT OF THE BUSH ADMINISTRATION IS AIMED AT GETTING JAPAN TO INCREASE GOVERNMENT SPENDING EVEN MORE THAN IT HAS AND THE GERMAN BUNDESBANK TO CUT INTEREST RATES EVEN MORE THAN IT HAS SO THAT OTHER EUROPEAN COUNTRIES CAN FOLLOW WE'RE PARTICULARLY LOOKING AT EUROPE WHERE GROWTH IS DISMAL TREASURY SECRETARY LLOYD BENTSEN SAID YESTERDAY IF TODAY'S GOVERNMENT REPORT ON FIRSTQUARTER ECONOMIC GROWTH IN THE US PROVES DISAPPOINTING US OFFICIALS ARE CERTAIN TO CITE THIS AS ANOTHER REASON FOR THE GROUP OF SEVEN TO DO MORE TO SHORE UP THE WORLD ECONOMY FOR ITS PART THE CLINTON ADMINISTRATION IS PREPARING A SCALEDBACK VERSION OF ITS FISCALSTIMULUS SPENDING PACKAGE MR BENTSEN TOLD REPORTERS YESTERDAY THE EARLIER VERSION WAS KILLED AT THE HANDS OF SENATE REPUBLICANS IN PRESIDENT CLINTON'S FIRST MAJOR LEGISLATIVE DEFEAT MR BENTSEN A FORMER CHAIRMAN OF THE SENATE FINANCE COMMITTEE SAID THAT HE WASN'T INVOLVED IN LOBBYING FOR THE ILLFATED PACKAGE BECAUSE THE WHITE HOUSE USED ITS TRADITIONAL LEGISLATIVE LIAISON GROUP BUT THAT HE WOULDN'T BE SURPRISED IF HE WAS INVOLVED IN RALLYING SUPPORT FOR A NEW VERSION TODAY'S MEETING OF G7 FINANCE MINISTERS AND CENTRAL BANKERS ISN'T LIKELY TO PRODUCE ANY BREAKTHROUGHS OR ANY IMMEDIATE REACTION FROM THE JAPANESE OR GERMANS BUT US OFFICIALS ARE ENCOURAGED BY THE PROGRESS THEY'VE MADE SO FAR WE'RE DELIGHTED WITH THE BUNDESBANK AND THE CUTS THEY'VE MADE MR BENTSEN SAID YESTERDAY OVERALL RATES CAN BE REDUCED SOME MORE THE GERMAN CENTRAL BANK HAS CUT ITS IMPORTANT OFFICIAL SHORTTERM INTEREST RATES BY A FULL PERCENTAGE POINT IN THE PAST THREE MONTHS AND YESTERDAY NUDGED DOWN THE RATE ON 14DAY REPURCHASE AGREEMENTS TO 775 FROM THE PREVIOUS 809 THE BUNDESBANK IS WIDELY EXPECTED TO CUT RATES FURTHER IN THE COMING MONTHS BECAUSE INFLATIONARY PRESSURES ARE EASING AND THE GERMAN ECONOMY REMAINS WEAK JAPAN MEANWHILE HAS UNVEILED A GOVERNMENTSPENDING PACKAGE THAT MR BENTSEN TERMED A HELP A POSITIVE THE US REASONS THAT A HEALTHIER JAPANESE ECONOMY SHOULD HELP REDUCE THE ENORMOUS JAPANESE TRADE SURPLUS BOTH BY INCREASING SALES OF IMPORTED GOODS IN JAPAN AND BY PUSHING UP THE YEN'S VALUE THIS WEEK'S MOVE BY THE US TO INTERVENE IN CURRENCY MARKETS SIGNALS THAT THE US BELIEVES SPECULATORS WERE PUSHING UP THE YEN TOO FAST IT DOESN'T MEAN THE US WANTS THE YEN TO FALL THE YEN WAS QUOTED IN LATE NEW YORK TRADING YESTERDAY AT 11215 TO THE DOLLAR COMPARED WITH 11167 LATE TUESDAY MR BENTSEN MADE CLEAR YESTERDAY THAT THE US INTERVENTION AND A STATEMENT THAT HE MADE ABOUT THE UNDESIRABILITY OF EXCESSIVE VOLATILITY WERE TIMED TO MAKE FOR A FRIENDLIER G7 MEETING AND FOR ONE THAT FOCUSES ON MATTERS OTHER THAN EXCHANGE RATES MR BENTSEN SAID JAPANESE FINANCE MINISTER YOSHIRO HAYASHI IN A TELEPHONE CONVERSATION YESTERDAY WAS VERY COMPLIMENTARY ABOUT THE US MOVE BUT JAPANESE OFFICIALS ARE STILL HOPING THAT THE G7 WILL ENDORSE THEIR EFFORTS TO KEEP THE YEN FROM RISING FURTHER ALTHOUGH THE FOCUS OF THE G7 WHICH CONSISTS OF THE US JAPAN GERMANY BRITAIN FRANCE CANADA AND ITALY IS ON THE DISAPPOINTING STATE OF THE GLOBAL ECONOMY RUSSIA IS ALSO ON THE AGENDA AMONG OTHER THINGS THE US IS STILL TRYING TO PERSUADE THE OTHERS TO ANTE UP FOR A PROPOSED 2 BILLION FUND TO HELP RUSSIA PRIVATIZE LARGE STATE ENTERPRISES BUT MR BENTSEN MADE CLEAR THAT WITH AN INTERNATIONAL AID PACKAGE ALREADY ANNOUNCED AND MONEY BEGINNING TO FLOW FROM MULTILATERAL FINANCIAL INSTITUTIONS THE BALL IS NOW IN RUSSIAN PRESIDENT BORIS YELTSIN'S COURT FOLLOWING MR YELTSIN'S SUCCESS IN A RECENT REFERENDUM THE US AND THE REST OF THE G7 EXPECT HIM TO DELIVER ON HIS PROMISES PARTICULARLY TO CURB THE RAPID GROWTH OF RUSSIA'S MONEY SUPPLY HOPEFULLY THE ELECTION WILL STRENGTHEN THE INFLUENCE THAT YELTSIN WILL HAVE CONCERNING THE CENTRAL BANK MR BENTSEN SAID THE US HAS PROMISED 18 BILLION TO THE FORMER SOVIET REPUBLICS ON TOP OF PREVIOUSLY PLEDGED AID BUT THE ADMINISTRATION HAS YET TO FIGURE OUT WHERE THE NEW MONEY IS COMING FROM BUDGET DIRECTOR LEON PANETTA SAID THIS WEEK MR BENTSEN SUGGESTED YESTERDAY THAT THE ADMINISTRATION MIGHT ASK CONGRESS TO APPROPRIATE THE MONEY AS PART OF ANOTHER TRY ON THE STIMULUS PACKAGE THE CHAIRMEN OF THE RELEVANT APPROPRIATIONS SUBCOMMITTEES HOWEVER HAVE SAID THEY WANT TO CONSIDER THE NEW AID REQUEST WHEN THEY TAKE UP THE PRESIDENT'S FISCAL 1994 FOREIGNAID BUDGET 9304290082 930429 CREDIT RATINGS ARMCO INC PARSIPPANY NJ STANDARD AND POOR'S CORP SAID IT LOWERED ITS RATINGS ON THIS SPECIALTY STEELMAKER'S SENIOR UNSECURED DEBT AND PREFERRED STOCK THE RATING AGENCY SAID ITS MOVE IMPACTS ABOUT 450 MILLION IN CONSOLIDATED DEBT OUTSTANDING ARMCO'S SENIOR UNSECURED DEBT WAS LOWERED TO SINGLEB FROM DOUBLEBMINUS AND ITS PREFERRED STOCK WAS LOWERED TO SINGLEBMINUS FROM SINGLEB THE IMPLIED SENIOR SECURED DEBT RATING IS BPLUS STANDARD AND POOR'S SAID ARMCO'S RESTRUCTURING IS TAKING LONGER THAN EXPECTED AND POORLY PERFORMING NONSTRATEGIC UNITS HAVE YET TO BE DIVESTED SPECIAL CHARGES AND LOSSES ON EQUITY INVESTMENTS HAVE SEVERELY ERODED THE EQUITY BASE THE AGENCY ADDED AND FINANCIAL LEVERAGE IS EXTREMELY AGGRESSIVE IT SAID AN ARMCO SPOKESMAN SAID THE COMPANY WAS DISAPPOINTED BUT DECLINED FURTHER COMMENT 9304290081 930429 DEGROOTE OTHERS TO PAY 181 MILLION TO SETTLE LAIDLAW INSIDERTRADING CASE BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO MICHAEL DEGROOTE AN ASSOCIATE AND A COMPANY AGREED TO PAY A TOTAL OF 23 MILLION CANADIAN DOLLARS US181 MILLION TO SETTLE CHARGES THAT THEY USED INSIDE INFORMATION TO SELL SHORT SHARES OF LAIDLAW INC WITHIN MONTHS OF MR DEGROOTE'S RESIGNATION AS A DIRECTOR OF THE COMPANY IN DECEMBER 1990 MR DEGROOTE WHO FOUNDED LAIDLAW AND BUILT IT INTO ONE OF NORTH AMERICA'S BIGGEST WASTEMANAGEMENT AND TRANSPORTATION CONCERNS DENIED IN A STATEMENT THAT HE COMMITTED ANY ILLEGAL ACTIONS OR TOOK ADVANTAGE OF ANY MATERIAL CONFIDENTIAL INFORMATION ABOUT LAIDLAW HE SAID HE WANTED TO SETTLE THE CASE TO AVOID LENGTHY HEARINGS INTO THE INSIDERTRADING CHARGES HE IS CURRENTLY CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF REPUBLIC WASTE INDUSTRIES INC OF ATLANTA JAMES BAILLIE A LAWYER REPRESENTING MR DEGROOTE SAID HIS CLIENT'S INVOLVEMENT WAS IN LENDING C27 MILLION TO A FRIEND HENRI HERBOTS TO FINANCE THE SHORTSELLING TRANSACTIONS THROUGH SEAKIST OVERSEAS LTD A CHANNEL ISLANDS CONCERN CONTROLLED BY MR HERBOTS A RESIDENT OF BELGIUM MR BAILLIE SAID MR DEGROOTE'S ONLY PROFIT WAS LESS THAN C500000 IN INTEREST ON THE LOAN SHORT SELLERS SELL BORROWED STOCK AND HOPE TO MAKE A PROFIT BY REPLACING IT WHEN THE STOCK'S VALUE DECLINES AFTER THE SHORT SALES WHICH TOOK PLACE IN EARLY 1991 LAIDLAW ANNOUNCED THAT ITS SECONDQUARTER RESULTS WOULD BE SHARPLY LOWER THAN EXPECTED WHICH HURT THE COMPANY'S STOCK MR DEGROOTE HAS BEEN TARNISHED BY AN ERROR OF JUDGMENT THAT WILL CONTINUE TO HAUNT HIM MR BAILLIE SAID LAWYERS FOR MR HERBOTS AND SEAKIST NEITHER ADMITTED NOR DENIED THE INSIDERTRADING CHARGES WHICH WERE BROUGHT BY THE STAFF OF THE ONTARIO SECURITIES COMMISSION THE BODY THAT REGULATES THE PROVINCE'S SECURITIES INDUSTRY MOST OF THE C23 MILLION PAYMENT TO BE MADE BY MESSRS DEGROOTE AND HERBOTS AND BY SEAKIST WILL BE USED TO COMPENSATE PARTIES THAT SUFFERED A LOSS AS A RESULT OF THE SHORTSELLING OF LAIDLAW SHARES OFFICIALS WOULDN'T DISCLOSE A BREAKDOWN OF HOW MUCH EACH OF THE RESPONDENTS IN THE CASE WILL PAY MESSRS DEGROOTE AND HERBOTS AND SEAKIST ALSO WERE BANNED FROM SECURITIES TRADING IN ONTARIO FOR FIVE YEARS THE SETTLEMENT AGREEMENT ALSO CRITICIZED TORONTO BROKER MIDLAND WALWYN CAPITAL INC FOR FAILING TO SUPERVISE ADEQUATELY THE SEAKIST ACCOUNT MIDLAND WALWYN AGREED TO HIRE A CONSULTANT TO REVIEW THE FIRM'S PROCEDURES FOR DETERMINING THE BENEFICIAL OWNER OF AN ACCOUNT AND TO ADOPT NEW PROCEDURES THAT MIGHT BE IMPOSED BY THE ONTARIO SECURITIES COMMISSION A LAWYER FOR MIDLAND WALWYN SAID IT HAD NO ADDITIONAL COMMENT IN ADDITION W KEITH WALKER A MIDLAND WALWYN TRADER WHO HANDLED THE SEAKIST ACCOUNT AGREED TO RETIRE FROM THE INDUSTRY OFFICIALS SAID MR WALKER IS IN HIS 60S MR WALKER AND MIDLAND WALWYN ALSO AGREED TO REPAY A COMBINED C304286 THAT THEY EARNED AS A COMMISSION ON SEAKIST'S SHORT SALES MR WALKER HAS DECLINED TO COMMENT ON THE MATTER LARRY WAITE DIRECTOR OF ENFORCEMENT AT THE ONTARIO SECURITIES COMMISSION SAID THE SETTLEMENT IS THE LARGEST YET IN THE PROVINCE FOR AN INSIDERTRADING CASE THE INVESTIGATION WHICH BEGAN A YEAR AND A HALF AGO REFLECTS A MOVE BY THE COMMISSION TO PUT MORE OF ITS RESOURCES INTO EXAMINING SITUATIONS OF APPARENT INSIDER TRADING HE SAID THIS SENDS A VERY STRONG MESSAGE THAT THE COMMISSION WILL INVESTIGATE INTERNATIONAL INSIDER TRADING IN ONTARIO MR WAITE SAID 9304290080 930429 LETTERS TO THE EDITOR HYSTERIA IGNORANCE AND THE LAW DOROTHY RABINOWITZ'S APRIL 15 EDITORIALPAGE ARTICLE KELLY MICHAELS'S ORWELLIAN ORDEAL HAS AN EARLIER PARALLEL THE SALEM WITCH TRIALS THAT TRAGEDY OF 1692 ALSO REVOLVED AROUND CHILDREN SEVERAL ADOLESCENT GIRLS EXHIBITING APPARENT FITS AND CONVULSIONS THAT DEFIED MEDICAL EXPLANATION WERE DECLARED BEWITCHED THE NEXT STEP WAS TO FIND OUT WHO HAD DONE THE BEWITCHING THE GIRLS SIMPLY BLAMED PEOPLE THEY DID NOT LIKE GUILT WAS PRESUMED ON THE BASIS OF TEENAGE TESTIMONY AND INNOCENCE WAS IMPOSSIBLE TO PROVE OVER A SIXMONTH PERIOD 20 INNOCENT PEOPLE WERE EXECUTED AND 150 MORE WERE GAOLED BUT AT LEAST THE SALEM HYSTERIA SPENT ITSELF QUICKLY THE FIRST EXAMINATION ON THE CHARGE OF WITCHCRAFT TOOK PLACE ON MARCH 1 1692 THE LAST EXECUTION OCCURRED ON SEPT 22 PUBLIC REVULSION TOWARD THE WITCH TRIALS DEVELOPED AND IN MAY 1693 THE GOVERNOR OF THE MASSACHUSETTS BAY COLONY ORDERED THE RELEASE OF ALL THOSE ACCUSED AND AWAITING TRIAL LAST YEAR AS PART OF THE 300TH ANNIVERSARY OF THE WITCH TRIALS A PARTICIPATORY PLAY WAS PERFORMED REGULARLY IN SALEM THE SETTING WAS THE PRETRIAL HEARING OF SARAH GOOD FROM WHICH SUBSTANTIAL WRITTEN EVIDENCE IS STILL AVAILABLE EACH AUDIENCE WAS ASKED TO IMAGINE ITSELF IN 1692 SALEM WE WOULD LISTEN TO A PARADE OF WITNESSES AND THEN DECIDE WHETHER THERE WAS SUFFICIENT EVIDENCE FOR A FORMAL TRIAL CHARGES PRESENTED INCLUDED AN ACCUSATION THAT AFTER SARAH GOOD WAS SEEN LOITERING AROUND A NEIGHBOR'S PROPERTY THE NEIGHBOR'S CROPS DID POORLY AND SO ON THE DAY I SAW THE PLAY THE AUDIENCE VOTED BY A NARROW MARGIN TO PUT SARAH GOOD ON TRIAL THE SALEM WITCH TRIALS SHOULD BE REQUIRED STUDY ESPECIALLY FOR LAWYERS AND POLITICIANS THEY PROVIDE GRAPHIC EVIDENCE OF WHAT HAPPENS WHEN HYSTERIA IGNORANCE MALICE THE LAW AND THE POWER OF THE STATE INTERSECT I READ MS RABINOWITZ'S PIECE WITH AWFUL FASCINATION I HAD A SIMILAR EXPERIENCE IN THE COURSE OF DEFENDING IN JUVENILE COURT A MOTHER ACCUSED OF HAVING ABUSED HER CHILDREN THERE WAS NO EVIDENCE OF ANY CHILDBATTERING THERE WERE NO BRUISES FRACTURES SCARS OR OTHER EVIDENCE OF ABUSE HER YOUNGER SON HAD HOWEVER EXPERIENCED TWO EPISODES OF APNEA TEMPORARY CESSATION OF BREATHING FOLLOWED BY RAPID RESUSCITATION BY THE MOTHER AND HOSPITALIZATION BECAUSE TREATING PHYSICIANS WERE UNABLE TO DETERMINE THE CAUSE OF THESE EPISODES THOUGH IT WAS ACKNOWLEDGED THAT THERE WERE MANY POSSIBLE CAUSES THEY CONCLUDED THAT THE MOTHER WAS INTENTIONALLY SMOTHERING THE CHILD CUSTODY OF THE CHILD WAS TAKEN BY THE DEPARTMENT OF FAMILY AND CHILDREN SERVICES DFACS BASED ON A FINDING OF CHILD ABUSE HIS OLDER BROTHER WAS ALSO TAKEN THOUGH THERE WAS AGAIN NO EVIDENCE OF ABUSE THE OLDER CHILD HAD NOT EVEN HAD ANY HISTORY OF MEDICAL PROBLEMS WHEN A THIRD CHILD WAS BORN TO THIS POOR WOMAN DFACS AGENTS FOLLOWED HER TO THE OBSTETRICS WARD OF A HOSPITAL IN A NEIGHBORING COUNTY URGING HOSPITAL PERSONNEL AND PHYSICIANS THERE TO DELIVER THE NEWBORN CHILD INTO THEIR CUSTODY A PSYCHIATRIST EXAMINED THE MOTHER AND FOUND NO EVIDENCE OF ANY PSYCHIATRIC OR PSYCHOLOGICAL DISORDER HE REFUSED TO HONOR THE REQUESTS FOR CUSTODY BUT FOR HIS INTERVENTION ALL THREE OF HER CHILDREN WOULD HAVE BEEN TAKEN BY DFACS AND PLACED IN FOSTER HOMES IT TOOK MORE THAN A YEAR FOR THIS MOTHER TO REGAIN CUSTODY OF HER FIRST TWO CHILDREN WHAT WAS THE JUSTIFICATION OF DFACS'S ACTIONS IT WAS A THEORETICAL CONSTRUCT REFERRED TO AS MUNCHAUSEN'S SYNDROME BY PROXY MSP DISCOVERED IN 1977 THIS PSYCHIATRIC SYNDROME DESCRIBES THE BEHAVIOR OF A PARENT WHO DELIBERATELY INJURES HER CHILD IN ORDER TO OBTAIN THE SATISFACTION OF HAVING THE ATTENTION OF MEDICAL PERSONNEL A DIAGNOSIS OF MSP NECESSARILY PRESUMES THAT CHILD ABUSE HAS OCCURRED AS IN MY CASE HOWEVER THE EXPERTS WHO PROVIDE THE DIAGNOSIS OFTEN HAVE NO EVIDENCE THAT ANY ABUSE HAS IN FACT OCCURRED NEVERTHELESS IT IS THE DIAGNOSTIC OPINION OF THOSE EXPERTS GIVEN IN JUVENILE COURT PROCEEDINGS THAT FORMS THE BASIS FOR A JUDICIAL FINDING THAT THE CHILDREN ARE ABUSED THE CHILDREN ARE TAKEN FROM THE PARENTS BASED ON THIS FINDING THE MEDICAL PERSONNEL WHO PROVIDE THESE OPINIONS ARE FACED WITH A MEDICAL PROBLEM OF UNDETERMINED ETIOLOGY THEY DERIVE FROM THAT UNCERTAINTY AND FROM DARK SUSPICIONS A DIAGNOSIS OF MSP THE ONLY OTHER CHARACTERISTIC FEATURES OF MSP AS REPORTED IN THE MEDICAL LITERATURE ARE 1 CLEVER DENIALS OF ABUSE BY THE ABUSER 2 PROTESTATIONS OF INNOCENCE BY THE ABUSER AND 3 AN APPEARANCE OF EXCESSIVE PARENTAL CONCERN ABOUT THE MEDICAL CONDITION OF THE CHILD THE PARENT AFFLICTED WITH THE SYNDROME IS DESCRIBED AS SUBTLE AND THE SYNDROME IS DESCRIBED AS INSIDIOUS INDEED IT IS IN PRESENTATION IT IS NO DIFFERENT FROM INNOCENCE IT WAS NOT THE RULE OF LAW THAT ULTIMATELY RESTORED MY CLIENT'S FAMILY SEVERAL CASEWORKERS WHO WORKED WITH THE MOTHER DURING THE YEAR OF HER AGONY WHOSE MINDS WERE NOT CLOUDED BY THEORETICAL CONSTRUCTS CAME TO APPRECIATE THAT THE MOTHER WAS A CARING AND CONCERNED PARENT WHO WAS INNOCENT OF THE CHARGES LEVELED AGAINST HER NOT HAVING A DOCTORAL DEGREE THEY WERE ABLE TO NOTE THE ABSENCE OF ANY REAL EVIDENCE AGAINST HER ON THEIR RECOMMENDATION THE CHILDREN ULTIMATELY WERE RESTORED TO THEIR MOTHER IN NO OTHER SETTING DO JARGON AND THEORY SO COMPLETELY DISPLACE FACTS AS THE BASIS FOR LEGAL JUDGMENT WHERE CHILD ABUSE IS CHARGED THE JUVENILE COURT GENERALLY ELECTS TO TAKE THE CHILD FROM THE PARENTS IN THE INTEREST OF SAFETY AND SORT THINGS OUT LATER THE ENTIRE PROCEDURE IS ENSHROUDED IN SECRECY SO THAT LITTLE MEANINGFUL CRITIQUE OF THE SYSTEM OCCURS AS A FIRST STEP TOWARD REFORM IT IS TIME WE OPENED UP THE JUVENILE COURTS TO PUBLIC SCRUTINY WE SHOULD GRANT NO LESS PROCEDURAL SAFEGUARDS WHEN THE FATE OF OUR FAMILIES AND CHILDREN IS AT STAKE THAN WE GRANT FOR THE PROTECTION OF OUR PROPERTY THE STORY OF KELLY MICHAELS REALLY HIT A RAW NERVE TO BE SURE CHILD ABUSE IN ANY FORM IS ABHORRENT BUT THE CURRENT HYSTERIA SURROUNDING IT RUINS THE LIVES OF MANY INNOCENT PEOPLE NOT ALL FALSE ACCUSATIONS OF CHILD ABUSE ARE THE INVENTIONS OF MISGUIDED ZEALOTS OR VINDICTIVE SPOUSES SOME ARE THE RESULT OF PURE IGNORANCE SUCH IS THE CASE WITH THE MONGOLIAN OR BLUE SPOT WHICH IS A BIRTHMARK FOUND ON ABOUT 70 OF ALL ASIAN BABIES IT APPEARS AS A BRUISE VARIES IN SIZE AND USUALLY COVERS THE LOWER BACK AND BUTTOCK AREA IN MOST CASES IT DISAPPEARS BY THE TIME THE CHILD IS 10 YEARS OLD TWO YEARS AGO A JAPANESE FRIEND OF MINE WAS ACCUSED ANONYMOUSLY OF PHYSICALLY ABUSING HER FOURYEAROLD CHILD IMAGINE THE SHOCK AND HUMILIATION SHE FELT WHEN WITH LIMITED ENGLISH SHE HAD TO PROVE THAT THE BRUISE WAS INDEED A BIRTHMARK LUCKILY THE SOCIAL WORKER FROM CHILD PROTECTIVE SERVICES KNEW OF THE MONGOLIAN SPOT AND THE INCIDENT ENDED WITH A TERSE LETTER OF REGRET LESS THAN A YEAR LATER ANOTHER JAPANESE FRIEND WAS NOT AS FORTUNATE WHEN SHE WAS ACCUSED OF BEATING HER ONEYEAROLD DAUGHTER ALTHOUGH FROM THE SAME DEPARTMENT OF PROTECTIVE SERVICES THE SOCIAL WORKER ASSIGNED TO THIS CASE KNEW NOTHING ABOUT A BLUE SPOT AND IT TOOK A TRIP TO THE DOCTOR TO PROVE MY FRIEND'S INNOCENCE AT ABOUT THE SAME TIME IN ANOTHER STATE A JAPANESE ACQUAINTANCE OF THEIRS ALSO WAS ARRESTED FOR CHILD ABUSE BECAUSE NEITHER THE SOCIAL WORKER NOR THE DOCTOR KNEW OF THE MONGOLIAN SPOT WELCOME TO AMERICA 9304290079 930429 LEISURE & ARTS THE GALLERY DR BARNES'S PRIZED PAINTINGS ON TOUR FOR FIRST TIME BY DEBORAH SOLOMON WASHINGTON DC ALBERT C BARNES MD WAS IRASCIBLE RESENTFUL AND PROBABLY CRAZY HE WAS ALSO PERHAPS THE GREATEST ART COLLECTOR THIS COUNTRY HAS EVER PRODUCED HIS EXISTENCE PROVES CONCLUSIVELY THAT LEADING MUSEUMS DO NOT NECESSARILY SPRING FROM ENLIGHTENED CIVIC INTERESTS EARLY IN THIS CENTURY WHEN MODERN ART WAS STILL WIDELY REGARDED AS A JOKE BARNES BOUGHT MANY MASTERWORKS IN PARIS AND MOVED THEM TO HIS VILLA IN MERION PA OUTSIDE OF PHILADELPHIA BY THE 1920S HE OWNED MORE THAN 100 PICTURES BY RENOIR DOZENS OF CEZANNES AND MATISSES AND EARLY PICASSOS HIS MUSEUM WAS OFFICIALLY A PUBLIC INSTITUTION BUT BARNES ACTING MORE LIKE A BRATTY ARTIST THAN THE MILLIONAIRE INVENTOR OF THE PATENT MEDICINE ARGYROL MANAGED TO DENY ACCESS TO VIRTUALLY EVERY PERSON WITH A SERIOUS INTEREST IN ART THE PROBLEM SPECIFICALLY WAS THAT BARNES COULD NOT TOLERATE THE BLATHER OF ART CRITICS AND OTHER ANOINTED HIGHBROWS AND SO HE SHUT THEM OUT OF HIS MUSEUM HIS CLOSEDDOOR POLICY LED CURATORS AND COLLECTORS TO INVENT RATHER DEVIOUS SUBTERFUGES TO GAIN ENTRY ALFRED BARR THE DIRECTOR OF THE MUSEUM OF MODERN ART USED TO MAKE RESERVATIONS UNDER AN ASSUMED NAME ERWIN PANOFSKY THE DISTINGUISHED ART HISTORIAN RESORTED TO DRESSING UP AS A CHAUFFEUR BARNES'S FINAL SWIPE AT THE ART WORLD CAME WITH HIS DEATH WHEN HE DEEDED HIS MUSEUM TO LINCOLN UNIVERSITY A SMALL PREDOMINANTLY BLACK COLLEGE NOT FAR FROM MERION GREAT FRENCH PAINTINGS FROM THE BARNES FOUNDATION WHICH OPENS SUNDAY AT THE NATIONAL GALLERY OF ART HERE AND RUNS THROUGH AUG 15 VIOLATES EVERYTHING THAT BARNES STOOD FOR IT ALSO CREATES AN UNUSUAL MORAL QUANDARY FOR THE ART WORLD SHOULD BARNES'S WISHES HAVE BEEN RESPECTED HE NEVER LENT HIS PICTURES AND DID NOT ALLOW THEM TO BE PHOTOGRAPHED EXCEPT FOR HIS OWN MONKISH BLACKANDWHITE STUDIES OR SHOULD THE INTERESTS OF THE PUBLIC PREVAIL EVEN IF THAT TRANSLATES INTO JUST ANOTHER BRASSY BLOCKBUSTER COMPLETE WITH A SQUAWKING AUDIO TOUR THIS IS THE FIRST TIME A SELECTION OF BARNES'S PAINTINGS HAVE LEFT THEIR MUSTY MERION HOME AND THEIR EXODUS WILL INCLUDE STOPS AT THE MUSEE D'ORSAY IN PARIS AND THE NATIONAL MUSEUM OF WESTERN ART IN TOKYO THE CATALOG ACCOMPANYING THE EXHIBITION WITH ITS BLAZING COLOR ILLUSTRATIONS OPENLY DEFYING BARNES'S BAN IS A LANDMARK PUBLICATION THAT WELL SERVES THE INTERESTS OF BOTH THE PUBLIC AND PEDANTS BY BRINGING THE COLLECTION INTO THE MAINSTREAM OF ARTHISTORICAL DISCUSSION BARNES'S MAIN PASSION WAS FOR MODERN FRENCH PAINTING YET WALKING THROUGH THIS SHOW IS NOT LIKE TOURING OTHER COLLECTIONS OF MODERN ART ASSEMBLED BY AMERICANS THE HAVEMEYERS WHOSE HOLDINGS ARE NOW ON VIEW AT THE METROPOLITAN MUSEUM OF ART STARTED COLLECTING A GENERATION BEFORE BARNES AND ENDED UP WITH A HOARD OF GOYAS AND OTHER RELATIVELY EARLY PICTURES AND UNLIKE GERTRUDE STEIN WHO ACTUALLY MOVED TO PARIS AND SIPPED ABSINTHE WITH THE AVANTGARDE BARNES STAYED HOME IN MERION HE WASN'T INTERESTED IN NEWNESS FOR ITS OWN SAKE HE STOPPED COLLECTING PICASSO WHEN THE ARTIST WENT CUBIST PREFERRING TO STICK WITH THE GRAND FIGURATIVE TRADITION HIS COLLECTION IS AS MUCH MIRED IN THE CLASSICAL PAST THERE ARE BATHERS EVERYWHERE AS IT IS FIRMLY PLACED IN THE MODERN ERA THE NATIONAL GALLERY SHOW GETS OFF TO A SURPRISINGLY WEAK START WITH TWO WHOLE GALLERIES OF UNCTUOUS PICTURES BY RENOIR BARNES ACQUIRED MORE RENOIRS THAN ANYONE ELSE IN THE WORLD 180 IN ALL AND WHILE THE CURATORS OF THE EXHIBITION HAVE LIMITED THEIR SELECTIONS TO 17 THEY HAVE NOT LIMITED THEM ENOUGH WE MOVE FROM THE SACCHARINE PICTURES OF THE 1870S WITH THEIR PLUMP WIDEEYED CHILDREN AND PIOUS MOTHERS TO SOME OF THOSE INNUMERABLE NUDES OF THE 1880S INTERCHANGEABLE CHUBBY LADIES EACH WITH FLUSHED CHEEKS AND A LOOSE KNOT OF HAIR EACH A MOUND OF BLURRY BULGING FLESH ASCEND A FLIGHT OF STAIRS AND YOU'RE INTO CEZANNE COUNTRY HE'S REPRESENTED HERE BY A DAZZLING TROVE OF 20 PAINTINGS THAT FORM A VIRTUAL MINIRETROSPECTIVE DESPITE THE ABSENCE OF THE EARLY GROPING PICTURES FROM THE 1860S CEZANNE'S WORK IS OBVIOUSLY WELLKNOWN TO US HE MADE MOUNTAINOUS PROVENCE THE BACKDROP OF THE MODERNIST IMAGINATION AT THE NATIONAL GALLERY HOWEVER IT IS HIS STILL LIFES THAT STEAL THE SHOW THERE ARE FOUR OF THEM AND THEY'RE LINED UP ON THE SAME WALL AS IF TO FORM A VISUAL CRESCENDO THEY BELONG TO A WORLD IN WHICH PEARS TILT FROM THE EDGE OF TABLES DISH TOWELS SWIRL A GINGER JAR APPEARS TO BE LEVITATING AND A BLUERIMMED PLATE IS INEXPLICABLY STANDING UP STRAIGHT ALTHOUGH IT'S NOT LEANING AGAINST ANYTHING A WORLD IN OTHER WORDS IN WHICH THE ARTICLES OF DOMESTIC LIFE SEEM MORE ANIMATED AND MYSTERIOUS THAN ANYTHING FOUND OUTSIDE IN NATURE ALMOST EQUALLY SEDUCTIVE ARE THE CEZANNE PORTRAITS AND FIGURE PAINTINGS SEEING THE STONYFACED MADAME CEZANNE OR THE BARNES VERSION OF THE CARD PLAYERS IN WHICH A GROUP OF PROVENCAL WORKINGCLASS MEN HUNCH OVER A TABLE WE BEGIN TO UNDERSTAND THAT CEZANNE MADE ORDINARY PEOPLE SEEM AS MIGHTY AND MONUMENTAL AS WELL MONT SAINTEVICTOIRE THE NATIONAL GALLERY PRESENTS US WITH A CEZANNE WHO THOUGH SUPPOSEDLY A REALIST INVERTED CATEGORIES HE PAINTED DISHES AND DISHCLOTHS AS IF THEY WERE LIVING THINGS HE TURNED PEOPLE INTO MOUNTAINS AND MADE MOUNTAINS SEEM AS EXPRESSIVE AS PEOPLE THE MUSEUM HAS GIVEN US IF NOT AN ENTIRELY FRESH CEZANNE THEN AT LEAST A REFRESHED ONE NO MEAN FEAT CONSIDERING THE REAMS OF SCHOLARSHIP ALL BUT SMOTHERING THE SUBJECT THE EXTENSIVE MATISSE INSTALLATION BY COMPARISON SEEMS LESS REVEALING A MERE FOOTNOTE TO THE COLOSSAL RETROSPECTIVE THAT CLOSED EARLIER THIS YEAR AT THE MUSEUM OF MODERN ART IN NEW YORK TO BE SURE IT'S A JOY TO SEE THE JOY OF LIFE A FEVERISH PASTORAL BUT AS WE MOVE FROM ONE SWEETLY AUGUST MATISSE TO THE NEXT WE MAY HAVE A SENSE OF DEJA VU A MORE REWARDING EXPERIENCE I THINK CAN BE FOUND IN THE OTHER GALLERIES IN THE LESSERKNOWN CANVASES THAT CONSISTENTLY SURPRISE AND STARTLE THERE ARE SMALL GEMS SCATTERED EVERYWHERE MANET'S TARRING THE BOAT A MARITIME SCENE IN WHICH TWO MEN TORCH THE BLACK HULL OF SHIP HAS A DARK SMOLDERING POWER UTTERLY AT ODDS WITH THE RESTFUL SPIRIT OF THE SURROUNDING SEASCAPE ANOTHER SHOW STOPPER IS TOULOUSELAUTREC'S A MONTROUGEROSA LA ROUGE A PORTRAIT OF A THIRTYSOMETHING WOMAN WE CAN BARELY SEE HER FACE BEHIND UNKEMPT BANGS BUT THE TRUCULENT LINE OF HER JAW MANAGES TO CONVEY A WHOLE LIFETIME OF DISAPPOINTMENT THE NATIONAL GALLERY SHOW TRIES TO REMAIN FAITHFUL TO THE SPIRIT OF BARNES'S MUSEUM WHICH IS PICTURED IN A SERIES OF BLOWNUP PHOTOGRAPHS YET THIS DOCUMENTATION ONLY SERVES TO REMIND US OF THE DIFFERENCES BETWEEN THE TWO INSTITUTIONS BACK IN MERION PAINTINGS CLUTTERED THE WALLS FROM CEILING TO FLOOR CREATING AN AMBIANCE AS HECTIC AND HAPHAZARD AS THAT OF THE OLD PARIS SALONS FRENCH MASTERPIECES VIED FOR WALL SPACE WITH LESSER WORKS BY AMERICANS AND OTHERS SHAPELY IRON IMPLEMENTS NAILED TO THE WALL WERE INTENDED TO ECHO THE FORMAL PATTERNS IN THE ARTWORK SEURAT'S GREAT MODELS HUNG OVER A DOORWAY SO HIGH UP YOU PRACTICALLY NEEDED A LADDER TO SEE IT THIS ARRANGEMENT OR LACK THEREOF WILL ONCE AGAIN PREVAIL AFTER THE PAINTINGS RETURN TO THEIR MERION HOME WHICH IS CLOSED FOR RENOVATIONS IN WASHINGTON BAROQUE EXCESS GIVES WAY TO MODERNIST HYGIENE THERE IS SOMETHING CHILLY ABOUT THIS SHOW WITH ITS NEUTRAL BEIGE GALLERIES AND ANALYTIC APPROACH TO ARTISTIC GENIUS IN ORDER TO CONVERT LOONY DR BARNES'S COLLECTION INTO A LURATIVE MEGASHOW CURATORS HAD TO ERASE THE FEELING OF THE MERION CACHE PRESENTING IT AS A TIDY SPECTACLE WITH EACH MASTERPIECE IN ITS CORRECT HISTORICAL SLOT THE BARNES SHOW HAS EVERYTHING BUT THE MAGNIFICENT CRANKINESS OF ALBERT BARNES 9304290078 930429 BUSINESS BRIEF OHM CORP ENVIRONMENTAL SERVICES FIRM EXPECTS 1STPERIOD NET RISE OHM CORP CITING COST CUTS SAID IT EXPECTS TO REPORT NET INCOME OF AS MUCH AS THREE CENTS A SHARE FOR THE FIRST QUARTER UP FROM 98000 OR ONE CENT A SHARE A YEAR EARLIER THE FINDLAY OHIO ENVIRONMENTAL SERVICES COMPANY ALSO SAID IT EXPECTS TO REPORT NET REVENUE LOWER THAN THE 477 MILLION IT POSTED A YEAR EARLIER OHM SAID THE FIRST QUARTER IS SEASONALLY ITS WEAKEST PERIOD WE ARE OPTIMISTIC ABOUT REVENUE GROWTH AND FURTHER IMPROVEMENTS IN PROFITABILITY FOR THE FULL YEAR JAMES L KIRK CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN A STATEMENT OHM EXPECTS TO REPORT FIRSTQUARTER EARNINGS NEXT WEEK 9304290077 930429 BUSINESS BRIEF TRIMBLE NAVIGATION LTD FIRM POSTS 1STQUARTER NET ON COMMERCIAL SALES BOOST TRIMBLE NAVIGATION LTD POWERED IN PART BY A BIG JUMP IN COMMERCIAL SALES SAID IT EARNED 128000 OR ONE CENT A SHARE IN THE FIRST QUARTER THE RESULTS COMPARE WITH A YEAREARLIER LOSS OF 132 MILLION OR 81 CENTS A SHARE REVENUE IN THE LATEST PERIOD SOARED 49 TO 33 MILLION FROM 221 MILLION IN THE SAME QUARTER A YEAR AGO TRIMBLE A SUNNYVALE CALIF MAKER OF SATELLITEBASED NAVIGATION PRODUCTS SAID THE REVENUE INCREASE REFLECTS A 31 JUMP IN NONMILITARY SALES DURING THE QUARTER AND A 3 MILLION ADJUSTMENT FROM NOT HAVING TO PAY ANY WARRANTY ON TRIMPACK NAVIGATION DEVICES USED BY THE US MILITARY IN OPERATION DESERT STORM UNDER A WARRANTY WITH THE GOVERNMENT TRIMBLE HAD SET ASIDE 3 MILLION FROM THE SALE OF THE TRIMPACKS TO COVER ANY DEFECTS IN THE HANDHELD DEVICES WHICH USE SATELLITE SIGNALS TO PINPOINT EXACT LOCATIONS ANYWHERE IN THE WORLD SINCE THE MILITARY NEVER ENCOUNTERED PROBLEMS WITH THE TRIMPACKS' PERFORMANCE TRIMBLE OFFICIALS SAID THEY PUT THAT WARRANTY MONEY BACK INTO REVENUE 9304290076 930429 ENTERPRISE WASHINGTON UPDATE CONCERN OVER TAXES REGULATIONS STIFLES EXPANSION PLANS SMALL MANUFACTURERS WILL CURB CAPITAL SPENDING JOB GROWTH SURVEY SHOWS BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL THE CLINTON ADMINISTRATION IS COUNTING ON SMALL MANUFACTURERS TO CREATE JOBS BUT MANY PLAN LITTLE OR NO EXPANSION BECAUSE THEY ARE WORRIED ABOUT NEW FEDERAL TAXES AND REGULATIONS IN A NATIONAL ASSOCIATION OF MANUFACTURERS SURVEY OF 8000 SMALL MANUFACTURERS RELEASED YESTERDAY MOST COMPANIES SAID THEY ANTICIPATED ONLY MODEST GAINS IN CAPITAL SPENDING AND EMPLOYMENT THIS YEAR EVEN THOUGH EXPECTATIONS FOR THE ECONOMY ARE BRIGHTER THAN THEY WERE DURING MOST OF LAST YEAR MANY MEMBERS OF THE NAM'S SMALLER MANUFACTURERS COUNCIL VISITING WASHINGTON FOR A LEGISLATIVE CONFERENCE SAID THE PROSPECT OF NEW LABOR REGULATIONS ENERGY TAXES AND PRESIDENT CLINTON'S COMING HEALTHCARE PROPOSALS IS STIFLING EXPANSION PLANS HALF OF THE SURVEYED COMPANIES PLAN TO KEEP THEIR CAPITAL SPENDING UNCHANGED OR HOLD INCREASES TO 5 OR LESS IN 1993 ABOUT 64 HAVE SIMILAR PLANS FOR EMPLOYMENT LAST YEAR CAPITAL SPENDING REMAINED STATIC OR ROSE UP TO 5 AMONG 53 OF THE FIRMS POLLED EMPLOYMENT CHANGES STAYED WITHIN THOSE LIMITS AT 60 OF SURVEYED CONCERNS IN 1992 NEARLY 18 OF THOSE SURVEYED SAID THEY PLANNED TO REDUCE EMPLOYMENT THIS YEAR AND NEARLY 19 SAID THEY EXPECT TO CUT CAPITAL SPENDING FROM LAST YEAR'S LEVEL UNCERTAINTIES ABOUT HIGHER TAXES INCREASED REGULATIONS AND LEGAL COSTS AND THE CLINTON ECONOMIC PLAN ARE PREVENTING SMALL FIRMS FROM GENERATING MEANINGFUL JOB GROWTH NAM PRESIDENT JERRY JASINOWSKI SAID OF COURSE A MAJOR IMPROVEMENT IN THE ECONOMY COULD CHANGE MANY PLANS BUT FOR NOW EVEN SOME SMALL MANUFACTURERS THAT COULD GROW SAY THEY ARE HOLDING BACK I COULD EXPAND EMPLOYMENT 50 BUT I'M NOT DOING IT SAID BOB TOMLINSON PRESIDENT OF THE FOUNDRY OF THE SHOALS INC A FLORENCE ALA FIRM THAT MAKES IRON CASTINGS HE SAID HE DOESN'T INTEND TO HIRE ANY ADDITIONAL PERMANENT WORKERS THIS YEAR WE'RE HOLDING OUR EMPLOYMENT DOWN BECAUSE WE'RE VERY WORRIED ABOUT ADDITIONAL PUNITIVE REGULATIONS FROM THE ENVIRONMENTAL PROTECTION AGENCY THE LABOR DEPARTMENT'S OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION WORKERS' COMPENSATION AND POTENTIAL HEALTHCARE COVERAGE REQUIREMENTS MR TOMLINSON SAID HE SAID HIS COMPANY WHICH EMPLOYS 100 PEOPLE IS GROWING EVERY YEAR BUT WE WON'T GROW WITH THESE REGULATIONS HANGING OVER OUR HEAD RUTH STAFFORD CHAIRWOMAN OF THE NAM COUNCIL AND A VICE PRESIDENT OF KIVA CONTAINER CORP SAID THE PROPOSED ENERGY TAX IN MR CLINTON'S ECONOMIC PACKAGE WOULD COST HER PHOENIX COMPANY ABOUT 1 OF ITS ALMOST 10 MILLION IN GROSS ANNUAL SALES SO MANY COMPANIES ARE ON THE BRINK OF PROFITABILITY AND THEY ADMINISTRATION OFFICIALS ARE PROPOSING THINGS THAT GO RIGHT TO THE BOTTOM LINE YOU CAN'T EXPAND OR LOOK AT EQUIPMENT BECAUSE NO BANK WILL FINANCE IT IF YOU DON'T HAVE THE CASH FLOW MS STAFFORD ADDED LEX TAYLOR CHAIRMAN OF TAYLOR MACHINE WORKS INC IN LOUISVILLE MISS SAID HE WORRIES ABOUT CRIMINAL PENALTIES INCLUDED IN OSHA LEGISLATION PROPOSED BY MR CLINTON AND THE PRESIDENT'S PROPOSED TAX INCREASES FOR SMALL CORPORATIONS THAT PAY TAXES AT THE INDIVIDUAL RATE WOULD BE SEVERAL TIMES LARGER THAN THE PROPOSED INCREASE FOR BIG CORPORATIONS COMPLAINED J W KISLING CHAIRMAN OF MULTIPLEX CO A ST LOUIS CONCERN THAT MAKES AND SELLS BEVERAGEDISPENSING EQUIPMENT IN THE NAM SURVEY SMALL MANUFACTURERS SAID THEIR TOP CONCERNS ARE PROPOSALS TO EXPAND FEDERAL WORKER SAFETY RULES AND ENERGY TAXES AND THE NEED THEY PERCEIVE FOR CHANGE IN PRODUCT LIABILITY LAWS AND FOR A PERMANENT INVESTMENTTAX CREDIT THAT WOULD APPLY TO MORE MANUFACTURERS THAN MR CLINTON HAS SUGGESTED MANY SMALL MANUFACTURERS HAVE ANNUAL SALES ABOVE 5 MILLION THE PROPOSED LIMIT FOR THE PERMANENT CREDIT THE REQUIREMENTS OF FEDERAL LAWS PASSED BEFORE MR CLINTON TOOK OFFICE SUCH AS THE AMERICANS WITH DISABILITIES ACT ALSO WORRY SOME SMALL BUSINESS OWNERS WITH ALL THESE REGULATORY AND TAX BURDENS YOU WONDER WHY YOU SHOULD GET UP IN THE MORNING AND BEAT YOUR BRAINS OUT SAID MS STAFFORD BEING IN BUSINESS IS JUST NOT FUN ANYMORE EATERY OWNERS PRESS THEIR FIGHT AGAINST CUTTING THE BUSINESSMEAL TAX DEDUCTION ABOUT 200 RESTAURANT OWNERS FROM AROUND THE COUNTRY ARE EXPECTED TO LOBBY ON CAPITOL HILL TODAY ADDING FORCE TO A LETTERWRITING AND TELEPHONECALLING CAMPAIGN ALREADY UNDER WAY THE SENATE FINANCE COMMITTEE PLANS HEARINGS TODAY ON THE CLINTON ADMINISTRATION'S PROPOSAL TO CUT TO 50 THE 80 TAX DEDUCTION FOR BUSINESS MEALS THE NATIONAL RESTAURANT ASSOCIATION CLAIMS THAT REDUCING THE DEDUCTIBILITY OF BUSINESS MEALS WOULD COST THE US ECONOMY 165000 RESTAURANTINDUSTRY JOBS BECAUSE OF REDUCED BUSINESS CHIP BERMAN COOWNER OF THE OUTTA THE WAY CAFE IN ROCKVILLE MD A WASHINGTON SUBURB WILL LEAD THE CHARGE FOR THE ASSOCIATION BY TESTIFYING BEFORE THE SENATE COMMITTEE THE BUSINESSMEAL DEDUCTION IS BEING BILLED AS THE LAST REMAINING LOOPHOLE FOR RICH FOLKS IN THREEPIECE SUITS DINING AT FANCY RESTAURANTS AND WRITING IT OFF ON AN UNSUSPECTING PUBLIC SAYS MR BERMAN BUT THE MAJORITY OF BUSINESS MEALS TAKE PLACE IN LOWTOMODERATELY PRICED RESTAURANTS LIKE MY OWN HE SAYS HIS CAFE SEATS 100 CUSTOMERS AND HAS ANNUAL REVENUE OF ABOUT 1 MILLION MR BERMAN CLAIMS THERE IS LITTLE HE CAN DO TO CUT COSTS TO OFFSET LOST BUSINESS LARGELY BECAUSE OF INCREASING TAXES AND FEES HE APPLIES WHAT HE CALLS CHEESEBURGER LOGIC TO THE PROBLEM IN ORDER TO PAY THOUSANDS OF DOLLARS IN PROPOSED NEW TAXES AND FEES HE ESTIMATES HE WOULD HAVE TO SELL 150000 MORE CHEESEBURGERS NEXT YEAR AT HIS CURRENT PRICE OF 525 EACH PEOPLE LOVE OUR CHEESEBURGERS BUT NOT QUITE THAT MUCH HE SAYS VALUE ADDED TAX IDEA ATTRACTS STRONG OPPOSITION FROM SMALL BUSINESS GROUPS THE VAT A KIND OF NATIONAL SALES TAX HAS BEEN MENTIONED AS A POSSIBLE MEANS FOR THE CLINTON ADMINISTRATION TO PAY FOR A NEW HEALTHCARE SYSTEM FOR SMALL BUSINESS THE BIGGEST BURDEN WOULD BE KEEPING RECORDS ON TAX DUE ON ITEMS AT EACH STAGE OF PRODUCTION SAYS THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS A 1990 STUDY CONDUCTED FOR THE FEDERATION ON THE VAT IN GREAT BRITAIN SHOWED THAT BRITISH FIRMS WITH FEWER THAN 15 EMPLOYEES SPENT ABOUT 25 OF THEIR OPERATING COSTS COMPLYING WITH THE TAX WHILE COMPANIES EMPLOYING AS MANY AS 500 PEOPLE SPENT ONLY 007 OF THEIR OPERATING COSTS NFIB LOBBYIST JOHN MOTLEY SAYS A VAT COULD SPLIT THE SMALL BUSINESS COMMUNITY SOME BUSINESSES WOULD PAY MUCH LESS OF A TAX THAN RETAILERS WHO MUST SELL FINISHED PRODUCTS HE SAYS THE NATIONAL ASSOCIATION OF WHOLESALERDISTRIBUTORS ARGUES THAT A VAT WOULD MEAN A HUGE NEW TAX BURDEN 9304290075 930429 BUSINESS BRIEF CONCURRENT COMPUTER CORP COMPANY SAYS NET ROSE 18 IN THE FISCAL THIRD QUARTER CONCURRENT COMPUTER CORP OCEANPORT NJ REPORTED AN 18 INCREASE IN NET INCOME FOR ITS THIRD QUARTER AS DOMESTIC SALES DISPLAYED CONTINUED STRENGTH FOR THE QUARTER ENDED MARCH 31 THE SUPPLIER OF FAULTTOLERANT COMPUTER SYSTEMS REPORTED NET OF 1 MILLION OR 10 CENTS A SHARE COMPARED WITH 863000 OR NINE CENTS A SHARE A YEAR EARLIER SALES INCREASED 22 TO 561 MILLION THE COMPANY ADDED THAT INTERNATIONAL SALES CONTINUED TO SUFFER FROM POOR ECONOMIC CONDITIONS IN ITS INTERNATIONAL MARKETS ALSO RESEARCH AND DEVELOPMENT COSTS WERE SOMEWHAT HIGHER THAN A YEAR AGO CONCURRENT ALSO SAID IT IS CONTINUING TO WORK WITH ITS FINANCIAL ADVISERS ON WAYS TO FURTHER STRENGTHEN THE COMPANY'S CAPITAL STRUCTURE IT SAID IT WOULD ONLY PURSUE A REFINANCING THAT WOULDN'T BE DILUTIVE TO SHAREHOLDERS AND WOULD IMPROVE ITS COMPETITIVE POSITION 9304290074 930429 CHRISTIE'S AND SOTHEBY'S BATTLE USING NEW FINANCING WEAPON BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN THEIR BITTER BATTLE TO SNARE BIG ART COLLECTIONS THE WORLD'S TWO LARGEST AUCTION HOUSES HAVE A NEW FINANCING WEAPON THAT IS REPLACING THE CONTROVERSIAL CASH GUARANTEES FOR SELLERS DURING THE PAST YEAR CHRISTIE'S INTERNATIONAL PLC AND SOTHEBY'S HOLDINGS INC HAVE BEGUN OFFERING FAVORED SELLERS A NONREFUNDABLE ADVANCE OR NONRECOURSE ADVANCE IN THESE DEALS THE AUCTION HOUSE ADVANCES THE COLLECTOR MONEY OFTEN HUNDREDS OF THOUSANDS OF DOLLARS MONTHS PRIOR TO AN AUCTION OF THE COLLECTOR'S ART WORKS THE MONEY IS REPAID ONLY IF THE ART COLLECTION SELLS WITH THE AUCTION HOUSE TAKING THE FINANCIAL RISK IN SHARP CONTRAST TO A STANDARD LOAN INTEREST CHARGES SOMETIMES ARE WAIVED BY THE AUCTION HOUSE AND THE AUCTION HOUSE CANNOT ATTACH A COLLECTOR'S SAVINGS OR OTHER ASSETS IF THE ART DOESN'T SELL IN ONE VERSION OF THESE LOANS THE AUCTION HOUSE CAN FORCE THE COLLECTOR TO SELL ADDITIONAL ART WORKS THE NEW FINANCING GAMBIT REPLACES SOTHEBY'S AND CHRISTIE'S MUCHCRITICIZED GUARANTEES IN WHICH THE AUCTION HOUSE RISKED ITS OWN CAPITAL BY GUARANTEEING A SELLER A MINIMUM PRICE FOR AN ART COLLECTION UNDER NEW YORK STATE LAW AN AUCTION HOUSE MUST DISCLOSE WHEN IT HAS EXTENDED A GUARANTEE ON AN ART WORK IT IS SELLING SINCE THE AUCTION HOUSE ESSENTIALLY BECOMES THE OWNER OF THE WORK AND THUS MAY NOT BE OFFERING IMPARTIAL ADVICE TO POTENTIAL BUYERS BUT THE AUCTION HOUSES AREN'T REQUIRED TO DISCLOSE WHEN THEY HAVE MADE NONREFUNDABLE ADVANCES ON ART WORKS BECAUSE THE ART MARKET REMAINS WEAK THE AUCTION HOUSES ARE INCREASINGLY COMPETITIVE FOR MATERIAL TO SELL SAID RALPH LERNER AN ESTATE ATTORNEY AS A RESULT THEY ARE BECOMING MORE GENEROUS IN THE TERMS THEY ARE OFFERING FOR ADVANCES HE SAID DIANA D BROOKS PRESIDENT OF SOTHEBY'S AUCTIONHOUSE UNIT SAID IN SEVERAL CASES WE HAVE DONE NONREFUNDABLE ADVANCES WITH RECOURSE TO OTHER ART ASSETS INCLUDING A COUPLE OF DEALS IN THE SALES FOR MAY SHE DECLINED TO PROVIDE ANY DETAILS OF THESE FINANCINGS OR THE AMOUNT OF THE LOANS EXTENDED IN THE PAST YEAR WE'VE SEEN AN INCREASE IN CONSIGNOR REQUESTS FOR ADVANCES SAID PATTY G HAMBRECHT CHRISTIE'S GENERAL COUNSEL IN SOME CASES THE TRANSACTIONS HAVE BEEN MORE COMPLICATED BECAUSE THE CONSIGNORS HAVE PREVIOUSLY PLEDGED THE PROPERTY ELSEWHERE SUCH AS A BANK TO SECURE AN EXISTING LOAN THE PACE OF ADVANCES IS WAY UP AT CHRISTIE'S IN 1992 CHRISTIE'S ADVANCED ART SELLERS ABOUT 50 MILLION SAID CHRISTOPHER DAVIDGE CHAIRMAN THAT TOTAL INCLUDES TRADITIONAL LOANS AND NONRECOURSE ADVANCES AND IS UP SHARPLY FROM 30 MILLION IN 1991 SOTHEBY'S REPORTED THAT 1992 ADVANCES WERE ABOUT 22 MILLION 1991 FIGURES WERE UNAVAILABLE NONRECOURSE ADVANCES SAID MS HAMBRECHT ARE AN ACKNOWLEDGEMENT THAT IN THE WORSTCASE SCENARIO WE WILL ONLY BE ABLE TO LOOK FOR THE COLLATERAL IN OUR POSSESSION TO SATISFY THE LOAN UNLIKE IN A GUARANTEE SITUATION WE ARE NEVER ACTUALLY GOING TO BE THE OWNER OF THE PICTURE GUARANTEES ARE BEING OFFERED RARELY BY THE AUCTION HOUSES BECAUSE OF THE RISK INVOLVED IN A SALE OF THE ESTATE OF HENRY FORD II SOTHEBY'S GUARANTEED THE HEIRS A SPECIFIC TOTAL AMOUNT BUT THE SALE RAISED 25 MILLION LESS THAN EXPECTED THE TOTAL AMOUNT GUARANTEED WASN'T DISCLOSED 9304290073 930429 NEW JERSEY BOND ISSUE IS BEING INVESTIGATED BY US AUTHORITIES TRENTON NJ AP FEDERAL AUTHORITIES ARE INVESTIGATING THE NEW JERSEY TURNPIKE AUTHORITY'S 1991 29 BILLION BOND ISSUE AND HAVE SUBPOENAED THE GOVERNOR'S OFFICE AND THE AUTHORITY FOR DOCUMENTS THE AUTHORITY'S CHAIRMAN SAID CHAIRMAN DAVID J GOLDBERG SAID THE AUTHORITY HAD RECEIVED THE SUBPOENA FROM A GRAND JURY EMPANELED BY THE US ATTORNEY'S OFFICE IN MANHATTAN ON APRIL 14 CONTROVERSY BROKE OUT AFTER THE SALE OVER TIES TO STATE POLITICAL FIGURES OF TWO NEW YORK LAW FIRMS THAT WERE PAID LEGAL FEES AS CONSULTANTS ON THE BOND ISSUE HERBERT I OLARSCH DIRECTOR OF LAW FOR THE TURNPIKE AGENCY SAID HE HAS NO IDEA ABOUT THE PURPOSE OF THE INVESTIGATION AND DECLINED COMMENT ON WHETHER IT MIGHT BE TIED TO THE FEES SOME 49 FINANCIAL FIRMS COLLECTED 20 MILLION FOR UNDERWRITING THE ISSUE AND A NUMBER OF LAW FIRMS WERE PAID 8 MILLION IN FEES HE SAID THE SUBPOENA ORDERED THE AGENCY TO PRODUCE VARIOUS RECORDS AND DOCUMENTS RELATING TO THE ISSUANCE OF NEW JERSEY TURNPIKE AUTHORITY REVENUE BONDS MR GOLDBERG SAID WHILE THE AUTHORITY HAS NOT BEEN TOLD THE NATURE OR DETAILS OF THE GRAND JURY INVESTIGATION THE AUTHORITY HAS BEEN ADVISED THAT NEITHER IT NOR AUTHORITY PERSONNEL ARE TARGETS OR SUBJECTS OF THE GRAND JURY INVESTIGATION A SPOKESWOMAN FOR THE US ATTORNEY'S OFFICE IN NEW YORK DECLINED COMMENT AUDREY KELLY A SPOKESWOMAN FOR NEW JERSEY GOV JIM FLORIO SAID THE RECORDS REQUEST HAD BEEN GIVEN TO THE STATE ATTORNEY GENERAL'S OFFICE A SPOKESMAN FOR THAT OFFICE SAID THE REQUEST HAD BEEN PASSED TO ITS DIVISION OF LAW AND WOULD NOT COMMENT FURTHER THE TURNPIKE ISSUED 29 BILLION IN BONDS BETWEEN SUMMER 1991 AND EARLY 1992 REFINANCING ISSUES TOTALING 25 BILLION TO TAKE ADVANTAGE OF LOW INTEREST RATES THE TURNPIKE AGENCY EMPHASIZED AT THE TIME THAT THE NEW BONDS WERE ISSUED AT A COST WELL BELOW THE 2 BILLION COST OF THE BONDS ISSUED IN 198485 9304290072 930429 BUSINESS BRIEF DOSKOCIL COS DEBT RESTRUCTURING IS DONE WITH NOTES NEW CREDIT LINE DOSKOCIL COS HUTCHINSON KAN SAID IT COMPLETED ITS DEBT RESTRUCTURING BY ISSUING 110 MILLION OF 975 SENIOR SUBORDINATED NOTES DUE 2000 AND CLOSING ON A 40 MILLION SECURED REVOLVING CREDIT LINE THE MEAT PROCESSOR SAID THE NEW CREDIT LINE WOULD BE PROVIDED BY A GROUP OF LENDERS LED BY A CHEMICAL BANKING CORP BANK UNIT THE INTEREST RATE IS THE LONDON INTERBANK OFFERED RATE PLUS 25 PERCENTAGE POINTS IT SAID THE NEW FINANCINGS AND A 30 MILLION EQUITY INVESTMENT IN DOSKOCIL LAST MONTH BY JOSEPH LITTLEJOHN & LEVY FUND LP COMPLETE THE COMPANY'S REFINANCING AND EXTINGUISH ITS OBLIGATIONS UNDER A PREVIOUS 150 MILLION SECURED CREDIT LINE THE COMPANY SAID THE COMPANY EXPECTS ITS INTEREST COSTS TO DROP SINCE THE INTEREST RATE ON THE PREVIOUS CREDIT LINE WAS LIBOR PLUS 35 PERCENTAGE POINTS A SPOKESMAN SAID 9304290071 930429 ASARCO CUTS DIVIDEND CITING 1STPERIOD LOSS DECLINE IN METAL PRICES NEW YORK ASARCO INC HURT BY DECLINING METAL PRICES AND HEAVY RAINS AT ITS MINES HALVED ITS DIVIDEND TO 10 CENTS A SHARE THE LOWEST LEVEL SINCE 1987 CHAIRMAN RICHARD DE J OSBORNE SAID THE CUT WAS DUE TO A LARGE FIRSTQUARTER LOSS AND THE CONTINUING SLIDE IN COPPER PRICES THE MINING COMPANY'S AVERAGE REALIZED COPPER PRICE FELL TO 99 CENTS A POUND FOR THE FIRST QUARTER FROM 104 A POUND A YEAR EARLIER A SPOKESMAN SAID ANALYSTS SAID THE DIVIDEND REDUCTION WAS ANOTHER SIGN OF CONTINUING WOES FOR ASARCO AND THE INDUSTRY J CLARENCE MORRISON OF PRUDENTIAL SECURITIES IN NEW YORK SAID MOST OF ASARCO'S EARNINGS ARE FROM COPPER PRODUCTION AND A DROP IN WORLDWIDE COPPER ORDERS HAS PRODUCED A 250000TON SURPLUS HE SAID THE OVERSUPPLY WILL LEAD TO LOWER COPPER PRICES AND A 105ASHARE LOSS FOR ASARCO THIS YEAR MR MORRISON DROPPED HIS RATING ON ASARCO'S STOCK TO SELL FROM HOLD LAST WEEK AFTER ESTIMATING THAT IT FACES MORE LOSSES AND DETERMINING THAT ITS DIVIDEND WAS IN JEOPARDY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY ASARCO SHARES CLOSED AT 19625 DOWN 25 CENTS ASARCO ANNOUNCED THE DIVIDEND REDUCTION TWO DAYS AFTER IT RELEASED ITS FIRSTQUARTER RESULTS RECORDING A NET LOSS OF 309 MILLION OR 74 CENTS A SHARE ON SALES OF 4571 MILLION THE LOSS COMPARES WITH A YEARAGO NET LOSS OF 476 MILLION OR 115 A SHARE ON SALES OF 4589 MILLION THE 1992 LOSS REFLECTED A 54 MILLION CHARGE FOR ACCOUNTING CHANGES 9304290070 930429 BUSINESS BRIEF AMERICAN ELECTRIC POWER CO FURTHER JOB CUTS POSSIBLE TWO UNITS MAY BE MERGED AMERICAN ELECTRIC POWER CO SAID IT MAY CUT AS MANY AS 500 CONTRACT AND COMPANY WORKERS BY YEAR'S END IN A BID TO SLASH COSTS A SPOKESMAN WAS UNABLE TO PROVIDE COMPANY EMPLOYMENT FIGURES THE POSSIBLE CUTS FOLLOW A REDUCTION OF 500 POSITIONS OVER THE PAST TWO YEARS THROUGH ATTRITION COMBINED WITH A HIRING FREEZE AND A REDUCTION IN THE COMPANY'S RETIREMENT AGE ALSO THE ASHLAND KY UTILITY HOLDING COMPANY SAID IT MAY EVENTUALLY MERGE ITS OHIO POWER AND COLUMBUS SOUTHERN POWER UNITS AMERICAN ELECTRIC ALSO UNVEILED PLANS TO MORE THAN DOUBLE SPENDING IN 1996 ON PROGRAMS TO HELP CUSTOMERS USE ELECTRICITY MORE EFFICIENTLY IT WILL SPEND 40 MILLION ON WHAT IT CALLS DEMANDSIDE MANAGEMENT PROGRAMS IN 1996 UP FROM AN EXPECTED 17 MILLION THIS YEAR 9304290069 930429 INTERNATIONAL YELTSIN REMOVES HOSTILE VICE PRESIDENT FROM PANEL INVESTIGATING CORRUPTION BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW RETURNING TO THE POLITICAL FRAY AFTER SUNDAY'S REFERENDUM VICTORY RUSSIAN PRESIDENT BORIS YELTSIN REMOVED HIS ANTAGONISTIC VICE PRESIDENT FROM THE CHAIRMANSHIP OF AN ANTICORRUPTION COMMISSION AND TOOK OVER THE JOB HIMSELF BUT ON ANOTHER FLANK OF MR YELTSIN'S BATTLE WITH HARDLINE OPPOSITION TO HIS ECONOMIC REFORMS THE CONSERVATIVE RUSSIAN PARLIAMENT DESPITE ITS DEFEAT IN THE REFERENDUM TURNED ITS FIRE ON THE GOVERNMENT'S PRIVATIZATION PROGRAM THE CONGRESS OF PEOPLE'S DEPUTIES DECLARED THAT THE SALE OF SOME STATE AND MUNICIPAL ENTERPRISES LAST YEAR AN ESSENTIAL ELEMENT OF THE YELTSIN GOVERNMENT'S REFORM STRATEGY WAS UNSATISFACTORY IT ORDERED AN AUDIT OF THE STATE PROPERTY COMMITTEE IN CHARGE OF THE PROGRAM THE PARLIAMENT ALSO DOWNGRADED ITS STANDING COMMITTEE ON ECONOMIC REFORMS WHICH IS LARGELY PROYELTSIN AND CREATED A NEW OVERSIGHT COMMITTEE SUBORDINATE TO ONE OF THE PARLIAMENT'S CHAMBERS THE REMOVAL OF VICE PRESIDENT ALEXANDER RUTSKOI AS HEAD OF THE ANTICORRUPTION COMMITTEE FOLLOWED BY A WEEK THE PRESIDENT'S ORDER THAT THE COMMITTEE INVESTIGATE ALLEGATIONS BY MR RUTSKOI THAT GOVERNMENT OFFICIALS ARE USING THEIR CONTROL OVER ECONOMIC REFORMS TO COLLECT BRIBES AND EMBEZZLE PROPERTY THE CHARGES WERE PART OF THE VICE PRESIDENT'S PREREFERENDUM CRITICISM OF MR YELTSIN THE PRESIDENT HAD COUNTERED BY QUESTIONING WHY MR RUTSKOI HADN'T COME FORWARD WITH HIS INFORMATION EARLIER GIVEN THAT HE HAD HEADED THE COMMISSION FOR MONTHS YESTERDAY THE CONGRESS INVITED MR RUTSKOI TO EXPOUND ON HIS COMMENTS MR RUTSKOI SAID HE HAD REVEALED ONLY THE TIP OF THE ICEBERG THE INDEPENDENT INTERFAX NEWS AGENCY REPORTED HE SAID HE HAD GIVEN THE COMMISSION DOCUMENTATION OF MORE THAN 7000 ABUSES OF THE PRIVATIZATION LAW THAT HE SAID WERE ADEQUATE TO BRING CRIMINAL CHARGES SINCE THEN HE SAID HE HAD LEARNED OF ADDITIONAL ACCUSATIONS INCLUDING THE ILLICIT EXPORT OF 35 BILLION WORTH OF RAW MATERIALS AND RARE METALS FROM THE SVERDLOVSK REGION MR RUTSKOI'S EARLIER SPEECH WAS FILLED WITH ALLEGATIONS THAT GOVERNMENT OFFICIALS AND MINISTERS WERE SEEKING PERSONAL GAIN BY NOT FULFILLING ORDERS OR CARRYING OUT INVESTIGATIONS MR RUTSKOI'S ORIGINAL STATEMENTS COVERED A WIDE RANGE OF ALLEGATIONS INCLUDING A CURRENCYCONTROL INSPECTORATE THAT WAS TO HAVE BEEN CREATED A YEAR AGO STILL ISN'T WORKING INVESTIGATIONS OF ECONOMIC CRIME AND CORRUPTION CONNECTED WITH THE WITHDRAWAL OF TROOPS FROM GERMANY HAVE BEEN IMPEDED SALES OF ALCOHOL STILL STATECONTROLLED WORTH HUNDREDS OF MILLIONS OF RUBLES WERE MADE WITHOUT ANY RECORD OF THE TRANSACTIONS DISPENSATIONS WERE AWARDED TO SELECTED EXPORTERS OF RAW MATERIALS THAT FREED THEM FROM REPORTING TOTAL EXPORT SALES SALES OF GEMS AND PRECIOUS METALS ON INTERNATIONAL MARKETS WERE ORDERED BUT THE NATION'S CURRENCY RESERVES HAVEN'T GROWN THE VICE PRESIDENT BLAMED THE SAME LIST OF REFORMERS THAT CONSERVATIVES HAVE BEEN TRYING TO OUST FOR MONTHS INCLUDING FORMER PRIME MINISTER YEGOR GAIDAR DEPUTY PRIME MINISTERS ALEXANDER SHOKHIN AND ANATOLI CHUBAIS FOREIGN MINISTER ANDREI KOZYREV AND PRESIDENTIAL ADVISERS GENNADY BURBULIS AND MIKHAIL POLTORANIN DESPITE PARLIAMENT'S ACTIONS MR CHUBAIS WHO IS IN CHARGE OF THE PRIVATIZATION PROGRAM WAS QUOTED BY THE REUTERS NEWS AGENCY AS SAYING THE REFERENDUM WOULD SPEED UP SALES OF SMALL AND MEDIUM FIRMS TO SMALL INVESTORS AS WELL AS PRIVATIZATION IN THE OIL AND GAS INDUSTRY 9304290068 930429 COUNTERPOINT THE RELIGIOUS RIGHT'S STEALTH CAMPAIGN BY ARTHUR J KROPP ON THE WALL STREET JOURNAL EDITORIAL PAGE IN RECENT MONTHS WE'VE READ QUITE A BIT ABOUT THE BATTLE TAKING PLACE OVER THE FUTURE OF PUBLIC EDUCATION ON THE ONE SIDE SEEM TO BE PARENTS MOTIVATED BY CONCERN FOR THEIR CHILDREN'S WELLBEING ON THE OTHER OR SO WE READ ARE THE EDUCATION PROFESSIONALS DRIVEN BY A CERTAIN WEKNOWWHAT'SBESTFORYOURKIDS RIGIDITY THAT'S A NICE LITTLE DICHOTOMY UNFORTUNATELY IT'S A FALSE ONE TOO TAKE THE CURRENT BATTLES IN THE NEW YORK CITY PUBLIC SCHOOLS AS AN EXAMPLE OVER THE PAST HALF YEAR CONTROVERSIES OVER SUCH ISSUES AS THE CHILDREN OF THE RAINBOW TOLERANCE CURRICULUM AND CONDOM DISTRIBUTION LED TO THE SACKING OF SCHOOLS CHANCELLOR JOSEPH FERNANDEZ PARENTS' ORGANIZATIONS IF TRUTH BE TOLD WERE INVOLVED ON BOTH SIDES BUT BECAUSE THE CHANCELLOR MAY HAVE TENDED TOWARD AN OCCASIONAL HEAVYHANDEDNESS THE MANTLE OF PROTECTOR OF PARENTS' RIGHTS WENT TO HIS OPPONENTS BUT LET'S BE CLEAR WHO THOSE PARENTS' FRIENDS ARE AMONG THE LEADERS OF THE ANTIRAINBOW BATTLE WERE INDIVIDUALS AND GROUPS ALLIED WITH RELIGIOUS RIGHT ORGANIZATIONS MOST NOTABLY PAT ROBERTSON AND HIS CHRISTIAN COALITION THAT'S NOT TO SUGGEST EVERYONE WHO OPPOSED RAINBOW WAS A ROBERTSON DUPE PLAINLY THE CURRICULUM TOUCHED A NERVE BUT SOME OF THE VOICES CLAIMING MOST LOUDLY TO REPRESENT PARENTS BELONGED TO POLITICAL LEADERS WITH AN ADDITIONAL AGENDA THAT AGENDA IS BECOMING VISIBLE ONLY NOW AS NEW YORKERS PREPARE TO VOTE TUESDAY FOR REPRESENTATIVES ON COMMUNITY SCHOOL BOARDS ACROSS THE FIVE BOROUGHS IN THAT CAMPAIGN A FEW GROUPS THAT LED THE ANTIRAINBOW CHARGE ARE NOW SEEKING TO ELECT SLATES OF CANDIDATES USING TACTICS THAT WOULD SEEM TO OFFEND ANYONE TRULY INTERESTED IN DEFENDING PARENTS' RIGHTS THEY BEGAN BY RELYING ON A STRATEGY FINETUNED OVER THE PAST FEW YEARS BY POLITICAL ACTIVISTS IN SAN DIEGO THE APPROACH CAME TO BE CALLED STEALTH CAMPAIGNING BECAUSE IT REQUIRED THAT RELIGIOUS RIGHTBACKED CANDIDATES FLY UNDER RADAR THE CHRISTIAN COALITION'S OWN DESCRIPTION THESE CANDIDATES CAMPAIGNED FAST AND FURIOUS WITHIN THEIR OWN CHURCH COMMUNITIES PHONEBANKING TO CHURCH DIRECTORIES LEAFLETTING CHURCH PARKING LOTS SEEKING AND WINNING ENDORSEMENTS FROM THE PULPIT WHAT THEY DIDN'T DO WAS ADDRESS THE MAINSTREAM OF VOTERS FOLLOWING ADVICE FROM SLATE ORGANIZERS THEY DUCKED INTERVIEWS SKIPPED DEBATES AND DECLINED SPEAKING INVITATIONS DOING ALL THEY COULD TO AVOID LETTING MOST VOTERS FIGURE OUT WHO THEY WERE AND WHY THEY WERE RUNNING THAT MIGHT SOUND LIKE A RECIPE FOR DEFEAT BUT IN SMALL DISTRICTS WITH LOW VOTER TURNOUT FACTORS AT WORK IN NEW YORK AS WELL A CONCENTRATED TURNOUT FROM ONE OR TWO CONGREGATIONS IS ENOUGH TO CARRY THE DAY IT CERTAINLY WAS IN SAN DIEGO IN 1990 WHERE A SLATE OF THESE STEALTH CANDIDATES WON TWOTHIRDS OF THEIR RACES NOW THE SHOW HAS FINALLY MADE IT TO BROADWAY RECOGNIZING THE ORGANIZING OPPORTUNITY PRESENTED BY THE RAINBOW AND CONDOM BATTLES THESE FORCES WITH A LOT OF HELP FROM ONE OF THE CITY'S CATHOLIC ARCHDIOCESES LAUNCHED A CONCERTED EFFORT TO TAKE OVER THE CITY'S COMMUNITY SCHOOL BOARDS FOR TAX REASONS THE VISIBLE RELIGIOUS RIGHT LEADERS HAVE SAID THEY'RE SIMPLY ASSEMBLING LISTS OF CANDIDATES FOR THEIR FOLLOWERS TO PRAY FOR NOT VOTE FOR BUT NOBODY'S FOOLED AND THE GREAT IRONY IS THAT THEY'RE TRYING TO EXPLOIT THE SAME PARENTS' RIGHTS ARGUMENT HERE'S THE CATCH AS IN SAN DIEGO THE CANDIDATES ARE REFUSING TO ACKNOWLEDGE THEIR RELIGIOUS RIGHT SUPPORT AND MOVEMENT LEADERS HAVE REFUSED TO SAY WHO THEY'RE ENDORSING ER PRAYING FOR AT A RECENT CHRISTIAN COALITION TRAINING SEMINAR ONE SPEAKER DEFENDED STEALTH TACTICS YOU'RE NOT MORALLY OBLIGED TO SAY ALL THINGS TO ALL PEOPLE YOU DON'T HAVE TO ANSWER EVERY QUESTION AND IF YOU DO YOU'RE GOING TO GET YOURSELF IN TROUBLE ANOTHER SPEAKER THIS ONE AN OFFICIAL OF THE CHRISTIAN COALITION BRAGGED THAT WE'VE GOT CANDIDATES IN ALMOST EVERY DISTRICT AND WE'RE GOING TO LOAD THOSE BOARDS UP AND YET NO NAMES HAVE BEEN PRODUCED LEAVING VOTERS IN THE DARK ABOUT THE BROADER AGENDA FOR EXAMPLE IT WOULD HAVE BEEN USEFUL TO KNOW IN SAN DIEGO THAT CANDIDATES WERE INTENDING TO CENSOR BOOKS FROM SCHOOL LIBRARIES ON THE GROUNDS THAT THEY CONTAINED GHOSTS AND GOBLINS IT WOULD HAVE BEEN INSTRUCTIVE TO KNOW THAT THEY WERE GOING TO WORK TO SHUT DOWN SCHOOL BREAKFAST PROGRAMS FOR DISADVANTAGED KIDS ON THE GROUND THAT THEY WERE SOMEHOW ANTIFAMILY IT MIGHT EVEN HAVE BEEN WORTHWHILE TO KNOW THAT THEY HAD IT IN THEIR PLAN TO WORK TO INTRODUCE THE TEACHING OF ADAM AND EVE INTO SCHOOL BIOLOGY CLASSROOMS THAT'S PRECISELY WHAT HAPPENED IN SAN DIEGO AND WHETHER THE PARENTS/VOTERS SUPPORTED THOSE ACTIONS OR NOT I IMAGINE THEY WOULD RATHER HAVE KNOWN WHERE THE CANDIDATES INTENDED TO TAKE THE SCHOOLS IN PART BECAUSE OF THE HEIGHTENED INTEREST IN THE NEW YORK RACES WE HAVE FINALLY BEGUN TO HEAR SOME OF THESE CANDIDATES' VIEWS BUT THE CHRISTIAN COALITION SLATE ALONG WITH ITS MEMBERS' ULTIMATE PLANS FOR NEW YORK CITY SCHOOLS REMAINS A MYSTERY SAN DIEGO AND NEW YORK ARE HARDLY ISOLATED INCIDENTS OVER THE PAST SEVERAL YEARS A NUMBER OF ORGANIZATIONS HAVE WORKED TO RECRUIT CHRISTIAN CANDIDATES FOR SCHOOL BOARDS THEIR STATED AIM IS TO CHRISTIANIZE THE PUBLIC SCHOOLS A GOAL THAT SHOULD CONCERN ANYONE WHO CARES ABOUT RELIGIOUS FREEDOM BUT THEIR INTERMEDIATE AGENDA CLEARING THE LIBRARIES GUTTING SEX EDUCATION MAKING A MOCKERY OF BIOLOGY INSTRUCTION AND MORE SHOULD CONCERN EVERYONE PARENTS ESPECIALLY SO THE TRUTH IS THAT THE BATTLES FOR THE SCHOOLS ARE A LOT MORE COMPLICATED THAN THE PARENTSVSEDUCATORS DICHOTOMY AND THOSE WHO PROCLAIM MOST LOUDLY THAT THEY SPEAK FOR THE INTERESTS OF PARENTS OUGHT NOT TO BE TAKEN BLINDLY AT THEIR WORD OF COURSE THESE FOLKS HAVE A RIGHT TO PARTICIPATE IN THE PROCESS SPEAK UP AT TEXTBOOK SELECTION HEARINGS AND RUN FOR SCHOOL BOARDS IN FACT I SALUTE THEM FOR CARING ENOUGH TO TAKE PART BUT THE LEAST THEY SHOULD DO IS OWN UP TO THEIR TRUE AGENDAS IN NEW YORK THE RELIGIOUS RIGHT'S FIRST STEP SHOULD BE TO COME FORWARD WITH ITS SLATES OF CANDIDATES OWN UP TO ALL OF ITS PLANS FOR THE SCHOOLS AND THEN LET THE VOTERS DECIDE ON THE MERITS THE SECOND STEP IS FOR ALL ELEMENTS OF THE COMMUNITY TO TAKE AN INTEREST IN THE PUBLIC SCHOOLS AND NOT JUST IN NEW YORK SO LONG AS PEOPLE TURN THEIR BACKS ON THE PUBLIC SCHOOL SYSTEM THEY WILL BE BITTERLY REWARDED SO LONG AS VOTERS DON'T VOTE PARENTS DON'T GO TO SCHOOL BOARD MEETINGS AND CITIZENS DON'T STAND UP TO SCHOOLBOOK CENSORS THINGS WILL ONLY GET WORSE THE REAL CHALLENGE THEN IS FOR CITIZENS AND PARTICULARLY PARENTS ALL PARENTS TO STAND UP FOR THEIR CHILDREN'S EDUCATION MR KROPP IS PRESIDENT OF THE PEOPLE FOR THE AMERICAN WAY ACTION FUND A NONPARTISAN CONSTITUTIONAL LIBERTIES ORGANIZATION SEE RELATED LETTER LETTERS TO THE EDITOR A GRASSROOTS PARENTS' REVOLT WSJ MAY 4 1993 9304290067 930429 INTERNATIONAL IMPORTS OF US STEEL TO MEXICO WILL GET TARIFFS OF 2 TO 81 SPECIAL TO THE WALL STREET JOURNAL MEXICO CITY MEXICO WILL IMPOSE TARIFFS RANGING FROM 2 TO 81 ON A VARIETY OF STEEL IMPORTS FROM THE US ACCORDING TO THE MEXICAN COMMERCE DEPARTMENT THE TARIFFS WILL BE LEVIED AGAINST HOT AND COLDROLLED SHEET STEEL PLATE AND GALVANIZED STEEL THE DEPARTMENT DIDN'T SPECIFY WHICH US COMPANIES ALLEGEDLY ARE GUILTY OF DUMPING OR SELLING A PRODUCT IN A FOREIGN MARKET AT A PRICE LOWER THAN IN ITS DOMESTIC MARKET COMMERCE OFFICIALS HERE HAVE REPEATEDLY STATED THAT MEXICAN ANTIDUMPING MEASURES ARE NOT RETALIATORY BUT THE MEXICAN GOVERNMENT'S ACTION COMES IN THE WAKE OF THE US'S IMPOSITION IN NOVEMBER OF COMPENSATORY STEEL DUTIES AGAINST MEXICO AND 11 OTHER NATIONS FOR ALLEGEDLY SUBSIDIZING STEEL EXPORTS TO THE US AT THAT TIME THE HIGHEST DUTY 9009 WAS LEVIED AGAINST MEXICAN STEEL PRODUCER HYLSA SA A SUBSIDIARY OF GRUPO ALFA SA OF MONTERREY IN MARCH THE INTERNATIONAL TRADE COMMISSION UPHELD PENALTIES AGAINST MEXICAN STEEL ROPE IMPOSING AN EVEN STIFFER PENALTY OF 11168 ACCORDING TO MEXICO'S FEDERAL RECORD DEFINITIVE TARIFFS OF 18 TO 38 WILL BE APPLIED TO HOTROLLED STEEL 2 TO 13 ON COLDROLLED STEEL AND 4 TO 40 ON ROLLED PLATE PROVISIONAL TARIFFS OF 6 TO 29 WILL BE APPLIED TO GALVANIZED SHEET STEEL AND SHEETPLATE STEEL WILL GARNER A PROVISIONAL 5 TO 81 PENALTY THE DEPARTMENT ALSO SAID IT HAS INITIATED AN INVESTIGATION INTO IMPORTS OF SPECIALTY STEEL PRODUCTS 9304290066 930429 BUSINESS BRIEF PILGRIM'S PRIDE CORP QUARTER'S NET WAS RECORD AFTER YEAREARLIER DEFICIT PILGRIM'S PRIDE CORP SAID HIGHER POULTRY PRICES AND STRONGER CONSUMER DEMAND COMBINED WITH LOWER FEED AND PRODUCTION COSTS HAVE ACCELERATED THE COMPANY'S TURNAROUND FROM A POOR FISCAL 1992 IT POSTED RECORD NET INCOME OF 78 MILLION OR 28 CENTS A SHARE FOR ITS SECOND QUARTER ENDED APRIL 3 COMPARED WITH A LOSS OF 87 MILLION OR 39 CENTS A SHARE A YEAR AGO SALES ROSE 11 TO 2277 MILLION FROM 2055 MILLION THE COMPANY SAID IN PITTSBURG TEXAS CLIFF BUTLER CHIEF FINANCIAL OFFICER SAID THAT BOTH THE COMPANY'S DOMESTIC OPERATIONS AND ITS MEXICAN SUBSIDIARY WHICH ACCOUNTS FOR ABOUT 25 OF THE POULTRY AND EGG COMPANY'S SALES RECORDED SUBSTANTIAL PRICE GAINS AT THE SAME TIME THAT CHEAPER FEED PRICES HELPED TRIM PRODUCTION COSTS THE RESULTS ANNOUNCED AT THE END OF THE TRADING DAY DIDN'T AFFECT THE COMPANY'S STOCK WHICH CLOSED AT 825 UP 125 CENTS IN LIGHT NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9304290065 930429 BUSINESS BRIEF RAX RESTAURANTS INC CONCERN TO SEEK AMENDMENT TO PLAN FOR REORGANIZATION RAX RESTAURANTS INC SAID IT PLANS TO FILE BY THE END OF MAY AN AMENDED PLAN OF REORGANIZATION RELATED TO ITS CHAPTER 11 FILING THE COLUMBUS OHIOBASED OWNER OPERATOR AND FRANCHISOR OF FASTFOOD RESTAURANTS FILED FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE IN NOVEMBER IN A STATEMENT WILLIAM UNDERHILL RAX'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE TIMETABLE FOR FILING THE AMENDED PLAN IS CONSISTENT WITH THE COMPANY'S GOAL OF EMERGING FROM CHAPTER 11 BY MIDSUMMER MR UNDERHILL ALSO SAID THAT ALTHOUGH THE TREATMENT OF RAX CREDITORS AND EQUITY HOLDERS UNDER THE AMENDED PLAN OF REORGANIZATION IS UNCERTAIN AND THE SUBJECT OF ONGOING NEGOTIATIONS IT IS VERY LIKELY THAT EXISTING EQUITY HOLDERS WILL SUFFER SUBSTANTIAL DILUTION OR A COMPLETE LOSS OF THEIR EQUITY INTERESTS 9304290064 930429 SEC CONSIDERS CONTROLS ON DERIVATIVES BY CHRISTI HARLAN AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL THE SECURITIES AND EXCHANGE COMMISSION IS CONSIDERING WHETHER IT SHOULD ALTER THE CAPITAL REQUIREMENTS FOR WALL STREET FIRMS IN ORDER TO LIMIT THEIR EXPOSURE TO EXOTIC DERIVATIVE SECURITIES AT A MEETING SCHEDULED FOR TUESDAY THE COMMISSION WILL DECIDE WHETHER TO SEEK PUBLIC COMMENTS ABOUT THE POSSIBILITY OF BROADENING EXISTING CAPITAL REQUIREMENTS FOR SECURITIES FIRMS TO COVER THEIR EXPOSURE TO FORWARDS SWAPS AND OTHER DERIVATIVES DERIVATIVES ARE INSTRUMENTS THAT MOVE WITH AN UNDERLYING STOCK BOND CURRENCY OR COMMODITY OR INDEX THEY ARE AMONG THE FASTESTGROWING BUSINESSES ON WALL STREET THESE DAYS UNTIL LAST SUMMER EXOTIC DERIVATIVE SECURITIES WERE BEYOND THE REACH OF THE SEC WHICH OVERSEES THE BROKERDEALER ACTIVITIES OF SECURITIES FIRMS FIRMS THAT DEAL IN THE EXOTIC SECURITIES WORK THROUGH AFFILIATES OF THE BROKERDEALERS THUS SIDESTEPPING SEC SCRUTINY BUT THE SEC WON THE POWER TO EXAMINE THE AFFILIATE FIRMS THANKS TO ISSUES RAISED BY THE COLLAPSE OF DREXEL BURNHAM LAMBERT INC THE AGENCY PUT A RISKASSESSMENT PROGRAM IN PLACE DURING THE SUMMER AND DERIVATIVES ARE AMONG THE FIRST RISKS TO BE STUDIED SEC COMMISSIONERS J CARTER BEESE JR AND RICHARD ROBERTS STRESSED THAT AT THIS POINT THE AGENCY IS INTERESTED ONLY IN WHETHER TO COLLECT COMMENTS REGULATION IF ANY WOULD COME LATER ANY SEC ACTION WOULD HAVE FARREACHING EFFECTS ON WHAT HAS BEEN A LARGELY UNREGULATED BUT HUGELY PROFITABLE MARKET FOR MANY WALL STREET FIRMS GROWTH OF THE DERIVATIVE MARKET HAS BEEN EXPLOSIVE DURING THE PAST FEW YEARS ESPECIALLY SINCE MANY OF THE NEW INSTRUMENTS ARE DESIGNED TO TAKE ADVANTAGE OF THE WIDE GAP BETWEEN SHORTTERM AND LONGTERM INTEREST RATES IT WOULD BE NAIVE TO THINK THAT WE'RE NOT GOING TO HAVE TO HANDLE THE DERIVATIVES QUESTION IN THE NEAR FUTURE SAID MR BEESE IN THE MUNICIPAL BOND MARKET FOR EXAMPLE INVERSE FLOATERS HAVE BECOME ONE OF THE MOST POPULAR DERIVATIVES INVERSE FLOATERS ARE EXTREMELY VOLATILE BONDS THAT PAY MORE THAN AN ORDINARY BOND WHEN SHORTTERM INTEREST RATES FALL AND LESS WHEN THEY RISE SALES OF MUNICIPAL INVERSE FLOATERS HAVE SOARED DURING THE PAST THREE YEARS TO 48 BILLION IN 1992 FROM JUST 100 MILLION IN 1990 BUT QUESTIONS HAVE BEEN RAISED ABOUT THE SORTS OF RISKS UNDERWRITERS AND INVESTORS TAKE ON WHEN THEY BUY AND SELL THE SECURITIES SOME DERIVATIVES THAT INVOLVE THE SWAPPING OF FIXEDRATE INTEREST PAYMENTS FOR FLOATINGRATING INTEREST PAYMENTS OR VICE VERSA COULD CAUSE HUGE LOSSES IF THERE IS A BIG SHIFT IN INTEREST RATES FOR WHICH FIRMS HAVEN'T HEDGED BY TAKING UP THE ISSUE THE SEC IS ECHOING CONCERNS RAISED BY RATINGS CONCERNS THAT BECAUSE OF THE WAY DERIVATIVES ARE DESIGNED THE DANGERS FROM INTERESTRATE SHIFTS MAY BE GREATER THAN THOSE FROM CHANGES IN CREDIT QUALITY STANDARD & POOR'S CORP RECENTLY SAID IT WOULD REVIEW THE DERIVATIVES MARKET TO DETERMINE IF ITS CREDIT RATINGS ARE BEING USED PROPERLY S&P PRESIDENT LEO O'NEILL SAID THE COMPANY IS CONCERNED THAT INVESTORS MAY WRONGLY INTERPRET HIGH CREDIT RATINGS ON CERTAIN DERIVATIVES AS A SIGN THAT THEY AREN'T VOLATILE OTHER EXAMINATIONS OF DERIVATIVES' RISKS ARE BEING CONDUCTED BY THE COMMODITY FUTURES TRADING COMMISSION AND THE GENERAL ACCOUNTING OFFICE ON BEHALF OF CONGRESS BUT THE SEC STUDY WHICH WAS EXPECTED IS CAUSING THE MOST CONSTERNATION AMONG SECURITIES FIRMS THE AGENCY CAN REQUIRE THE FIRMS TO RAISE CAPITAL LEVELS TO COVER THE RISKS ASSOCIATED WITH DERIVATIVES CURRENT CAPITAL RULES FOR SECURITIES FIRMS DON'T ACCURATELY REFLECT THOSE RISKS COMMISSIONER ROBERTS SAID 9304290063 930429 ECONOMY HOUSE PANEL SEEN PARING S&L FUNDS SOUGHT BY CLINTON BY GREG HITT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A HOUSE BANKING SUBCOMMITTEE IS EXPECTED TO SCALE BACK THE CLINTON ADMINISTRATION'S REQUEST FOR 42 BILLION TO COMPLETE THE SAVINGSANDLOAN CLEANUP AND UNDER LEGISLATION PROPOSED BY A KEY REPUBLICAN ON THE BANKING COMMITTEE THE S&L INDUSTRY WOULD HAVE TO FINANCE A BIG CHUNK OF THE CLEANUP AMOUNT WHICH WOULD PROBABLY MEAN RAISING S&L DEPOSITINSURANCE PREMIUMS IOWA REP JIM LEACH SAID HE WILL PROPOSE THAT REPLENISHING THE CAPITAL OF THE SAVINGS ASSOCIATION INSURANCE FUND BE PAID FOR ENTIRELY BY THE THRIFT INDUSTRY AND NOT WITH TAXPAYER ASSISTANCE AS IS ENVISIONED BY THE ADMINISTRATION THE MEASURE WOULD BE OPPOSED BY THE INDUSTRY WHICH HAS ALREADY BEEN LOBBYING AGAINST ANY BOOSTS IN PREMIUMS THE MOVE TO TRIM THE ADMINISTRATION'S REQUEST IS SPURRED BY A FRESH ASSESSMENT OF THE OPERATION'S COST BY THE GENERAL ACCOUNTING OFFICE LONG AMONG WASHINGTON'S BIGGEST PESSIMISTS ABOUT THE COST OF THE INDUSTRY DEBACLE GAO OFFICIALS NOW SAY THAT SUCH FACTORS AS LOW INTEREST RATES AND BETTERTHANEXPECTED RETURNS ON THE SALES OF FAILED THRIFTS' ASSETS SHOULD REDUCE THE FUNDING NEEDS OF THE RESOLUTION TRUST CORP THE CLINTON ADMINISTRATION WANTS 25 BILLION FOR THE RTC AND ANOTHER 17 BILLION FOR THE INSURANCE FUND WHICH IS SCHEDULED TO TAKE OVER FINANCING OF THE CLEANUP IN OCTOBER OF THIS YEAR GAO OFFICIALS TOLD THE HOUSE BANKING SUBCOMMITTEE ON FINANCIAL INSTITUTIONS YESTERDAY THAT THE RTC'S NEEDS MORE LIKELY RANGE FROM A BESTCASE SCENARIO OF 7 BILLION TO A WORSTCASE SCENARIO OF 17 BILLION THE LATEST ASSESSMENT WILL ADD TO THE SENTIMENT THAT ANY FURTHER FUNDING BE DELAYED WHILE THE INDUSTRY'S FORTUNES CONTINUE TO IMPROVE LESSENING THE SIZE OF ANY ADDITIONAL FINANCING THE REPORT SPARKED A FRANTIC ROUND OF DISCUSSIONS BETWEEN SUBCOMMITTEE DEMOCRATS HEADED BY CHAIRMAN STEPHEN NEAL OF NORTH CAROLINA AND ADMINISTRATION OFFICIALS OVER WHAT LEVEL OF FUNDING IS NEEDED IT'S ALMOST CERTAINLY GOING TO GO DOWN A SENIOR NEAL AIDE SAID STEVE WOULD WELCOME THE OPPORTUNITY TO BRING IT DOWN SO FAR CONGRESS HAS SPENT 87 BILLION ON THE RTC BUT THE MONEY HAS BEEN DOLED OUT GRUDGINGLY AND THE RTC HAS BEEN WITHOUT FUNDS FOR MORE THAN A YEAR REP NEAL IS SUPPORTING SIMILAR CONDITIONS BUT UNLIKE IN THE SENATE THE CONGRESSMAN FACES A MUCH MORE PARTISAN BATTLE AND CORRESPONDINGLY MORE DIFFICULT ODDS TO WIN PASSAGE OF THE MEASURE I'D SAY IT'S UPHILL HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ D TEXAS SAID ALBERT R KARR CONTRIBUTED TO THIS ARTICLE 9304290062 930429 CLINTON NOMINATES LEVITT FOR POSITION OF SEC CHAIRMAN BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON ANNOUNCED HIS SELECTION OF ARTHUR LEVITT JR TO BE THE 25TH CHAIRMAN OF THE SECURITIES AND EXCHANGE COMMISSION MR LEVITT 62 YEARS OLD IS A FORMER CHAIRMAN OF THE AMERICAN STOCK EXCHANGE AND A FOUNDER OF THE SECURITIES FIRM THAT BECAME SHEARSON LEHMAN BROTHERS INC MR LEVITT'S NOMINATION HAS CAUSED SOME CONCERN AMONG REGIONAL STOCK EXCHANGES AND THE OVERTHECOUNTER MARKETS WHICH WOULD HAVE PREFERRED TO SEE AN SEC CHAIRMAN WITH FEWER TIES TO NEW YORK AND THE BIG EXCHANGES THERE BUT RICHARD JENRETTE CHAIRMAN OF EQUITABLE LIFE ASSURANCE SOCIETY OF THE US AND A LONGTIME FRIEND OF MR LEVITT SAID HE DOESN'T EXPECT MR LEVITT IS GOING TO BE BIASED IN ANYONE'S FAVOR I THINK HE'S PROBABLY THE MOST QUALIFIED SEC CHAIR WE'VE HAD IN TERMS OF HAVING A BROAD PERSPECTIVE ON THE EQUITY MARKETS MR JENRETTE SAID MR LEVITT IS A DIRECTOR OF EQUITABLE LIFE AND FIVE OTHER COMPANIES FOR HIS PART MR LEVITT DECLINED TO DISCUSS ANY PLANS HE HAS FOR THE SEC HE DID MENTION AN IDEA HE RAISED FOUR YEARS AGO AS HE LEFT THE AMERICAN STOCK EXCHANGE OF SETTING NATIONAL TRAINING STANDARDS FOR STOCKBROKERS MR LEVITT A NATIVE OF THE CROWN HEIGHTS SECTION OF BROOKLYN NY GOT HIS START IN THE SECURITIES INDUSTRY 30 YEARS AGO BECAUSE OF HIS ABILITY TO SELL COWS IN 1962 MR LEVITT SAYS HE WAS SELLING RANCHES AND CATTLE FOR KANSAS CITYBASED OPPENHEIMER INDUSTRIES ONE OF THE PEOPLE WHO BOUGHT A HERD OF CATTLE FROM ME SAID THAT IF I COULD SELL COWS I COULD SELL SECURITIES MR LEVITT RECALLS THE FIRST SECURITIES FIRM HE APPROACHED DISAGREED AND REFUSED TO HIRE HIM MR LEVITT INSTEAD JOINED SHEARSON HAYDEN STONE INC WHERE HE STAYED FOR 12 YEARS RISING FROM PARTNER TO PRESIDENT AND HELPING BUY OUT THE FIRMS THAT WOULD BECOME SHEARSON LEHMAN BROTHERS AMONG THEM WAS THE FIRM THAT WOULDN'T HIRE HIM MR LEVITT BECAME A GOVERNOR OF THE AMERICAN STOCK EXCHANGE IN 1975 AND VICE CHAIRMAN IN 1977 A LITTLE MORE THAN A YEAR LATER HE WAS NAMED CHAIRMAN TO THE CHAGRIN OF MANY OF THE COMPANIES THAT TRADE ON THE EXCHANGE THE LISTED COMPANIES AT THAT TIME OPPOSED ME HE SAYS THEY JUST DIDN'T KNOW ME VERY WELL BUT IN A STORY THAT COULD BE INSTRUCTIVE ABOUT MR LEVITT'S FUTURE AT THE SEC HE SAYS HE WON OVER THE COMPANIES WITH OLDFASHIONED DOORTODOOR CAMPAIGNING WE WOULD GO FROM CITY TO CITY HAVING DINNERS LUNCHES AND BREAKFASTS WITH THE HEADS OF LISTED COMPANIES HE SAYS I CARRIED LISTS OF PHONE NUMBERS OF THE CEOS I COULDN'T SEE I SAT IN MY HOTEL ROOM AND CALLED THOSE PEOPLE IT WAS TERRIBLY IMPORTANT TO ME THAT THOSE PEOPLE AT THOSE COMPANIES KNEW ME AND KNEW I CARED ABOUT THEM HE SAYS JUST AS IMPORTANT TO MR LEVITT IS THE SEC CHAIRMANSHIP ABSOLUTELY HE SAYS I SAW IT AS AN OPPORTUNITY TO DO THINGS IN THE INDUSTRY THAT I COULDN'T DO AT A FIRM SEPARATELY PRESIDENT CLINTON NAMED LEE BROWN THE FORMER POLICE COMMISSIONER OF NEW YORK CITY AND HOUSTON AND THE FORMER PUBLIC SAFETY COMMISSIONER OF ATLANTA TO BE HIS CHOICE FOR FEDERAL DRUG CZAR THE 55YEAROLD MR BROWN IS THE SON OF A MIGRANT LABORER AND WAS THE FIRST BLACK TO HOLD A RANK HIGHER THAN SERGEANT ON THE HOUSTON POLICE FORCE HE LEFT HIS NEW YORK JOB LAST YEAR TO CARE FOR HIS AILING WIFE WHO DIED OF LUNG CANCER IN DECEMBER 9304290061 930429 BUSINESS BRIEF BENEFICIAL CORP FINANCIAL SERVICES FIRM POSTS PROFIT FOR THE FIRST QUARTER BENEFICIAL CORP'S FIRSTQUARTER RESULTS EXCEEDED ANALYSTS' EXPECTATIONS AS IT REPORTED A PROFIT COMPARED WITH A YEAREARLIER LOSS TIED TO A LARGE CHARGE FOR ACCOUNTING CHANGES THE WILMINGTON DEL FINANCIAL SERVICES CONCERN SAID NET INCOME WAS 491 MILLION OR 183 A SHARE A YEAR EARLIER BENEFICIAL HAD A LOSS OF 58 MILLION OR 228 A SHARE THAT INCLUDED A CHARGE OF 986 MILLION OR 379 A SHARE FOR NEW ACCOUNTING STANDARDS FOR POSTRETIREMENT HEALTH BENEFITS AND INCOME TAXES EARNINGS FROM CONTINUING OPERATIONS ROSE TO A RECORD 496 MILLION OR 185 A SHARE FROM 436 MILLION OR 163 A SHARE RESTATED TO REFLECT THE ACCOUNTING CHANGES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SHARES OF BENEFICIAL CLOSED AT 70 UP 125 CENTS 9304290060 930429 FOREIGN EXCHANGE DOLLAR SLIPS AGAINST MARK ENDS MIXED COMPARED WITH OTHER MAJOR CURRENCIES BY RICHARD SCHUMACHER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR EDGED LOWER AGAINST THE MARK WEDNESDAY DESPITE A LARGERTHANEXPECTED CUT IN A KEY GERMAN INTEREST RATE AND ENDED MIXED AGAINST OTHER MAJOR CURRENCIES A MOOD OF UNCERTAINTY AHEAD OF TODAY'S MEETING IN WASHINGTON OF THE GROUP OF SEVEN INDUSTRIALIZED NATIONS KEPT PLAYERS FROM STAKING OUT AGGRESSIVE NEW POSITIONS LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 15810 MARKS DOWN FROM 15830 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11215 YEN UP FROM 11167 YEN STERLING WAS TRADING AT 15740 DOWN FROM 15774 FINANCIAL MARKETS IN TOKYO WERE CLOSED THURSDAY FOR A NATIONAL HOLIDAY TRADERS SAID THAT BESIDES THE MEETING OF THE G7'S FINANCE MINISTERS THEY ALSO WERE AWAITING DATA TODAY ON THE US'S FIRSTQUARTER GROSS DOMESTIC PRODUCT THE TOTAL VALUE OF THE GOODS AND SERVICES PRODUCED IN THE NATION DEALERS SAID THEY WERE SURPRISED THE DOLLAR WEAKENED WEDNESDAY AFTER GERMANY'S CENTRAL BANK LOWERED ITS INTEREST RATE ON SECURITIESREPURCHASE AGREEMENTS CALLED REPOS EARLY IN THE DAY FUNDAMENTALLY IT DOESN'T MAKE ANY SENSE AT ALL SAID DON QUATTRUCCI AN ASSISTANT VICE PRESIDENT AT SHAWMUT BANK CONNECTICUT IN HARTFORD THE LOWEST ACCEPTED RATE AT THE BUNDESBANK'S REPO AUCTION WAS 775 DOWN FROM 809 LAST WEEK THE REPO RATE IS THE BUNDESBANK'S PREFERRED TOOL FOR FINETUNING GERMAN MONEYMARKET RATES MR QUATTRUCCI DESCRIBED THE CUT AS AGGRESSIVE AND SAID IT CONFIRMED COMMENTS MADE TUESDAY BY HELMUT SCHLESINGER BUNDESBANK PRESIDENT THAT THE CENTRAL BANK IS PAYING INCREASING ATTENTION TO GERMANY'S ECONOMIC DOWNTURN IN DECIDING RATE POLICY LOWER GERMAN INTEREST RATES TEND TO MAKE THE MARK LESS ATTRACTIVE TRADERS SAID AND THEY NOTED THE DOLLAR DID RISE TO ITS INTRADAY HIGH AGAINST THE MARK 15974 MARKS IMMEDIATELY FOLLOWING THE RATE REDUCTION BUT THE US CURRENCY THEN BEGAN TO DROP STEADILY AGAINST THE MARK AND CONTINUED TO DO SO FOR THE REMAINDER OF WEDNESDAY GIVEN AN ABSENCE OF MUCH FRESH NEWS ON WHICH TO TRADE PARTICIPANTS SAID THEY FOCUSED ON DOMESTIC US FACTORS THAT HAVE WEIGHED ON THE DOLLAR RECENTLY THERE'S A SENSE OF POLITICAL DRIFT AND ECONOMIC UNCERTAINTY IN THE US SAID KEVIN WEIR A VICE PRESIDENT OF FOREIGN EXCHANGE AT CANADIAN IMPERIAL BANK OF COMMERCE PRESIDENT CLINTON IS HAVING DIFFICULTY PASSING HIS DEFICITREDUCTION PACKAGE THROUGH CONGRESS AND RECENT US DATA HAVE SUGGESTED THE PACE OF THE US RECOVERY IS SLACKENING MR QUATTRUCCI SAID AGAINST THE YEN THE DOLLAR MOVED HIGHER BUT IN A LAZY CHOPPY FASHION TRADERS SAID IT WAS BASICALLY A REVERBERATION FROM TUESDAY SAID KEITH CHEVERALLS SENIOR MANAGER OF FOREIGN EXCHANGE AT NIPPON CREDIT BANK HE REFERRED TO INTERVENTION BY THE FEDERAL RESERVE BANK OF NEW YORK TO BUY DOLLARS FOR YEN AND TO COMMENTS BY TREASURY SECRETARY LLOYD BENTSEN THAT IT WASN'T APPROPRIATE FOR GOVERNMENTS TO MANIPULATE EXCHANGE RATES 9304290059 930429 BUSINESS BRIEF REEBOK INTERNATIONAL LTD COMPANY SETTLES LAWSUIT OVER PATENT INFRINGEMENT REEBOK INTERNATIONAL LTD STOUGHTON MASS SAID IT SETTLED A PATENT INFRINGEMENT SUIT WITH ES ORIGINALS INVOLVING REEBOK'S PUMP TECHNOLOGY REEBOK SAID ES ORIGINALS A NEW YORK CONCERN THAT SELLS VOIT AND GITANO FOOTWEAR AGREED TO PAY A SUBSTANTIAL AMOUNT IN DAMAGES THE COMPANY DECLINED TO BE MORE SPECIFIC AN ES ORIGINALS SPOKESMAN DECLINED TO COMMENT ES ORIGINALS WAS PERMITTED TO SELL ITS REMAINING INVENTORY OF THE DISPUTED FOOTWEAR REEBOK ALSO HAS FILED SUIT AGAINST PAYLESS SHOESOURCE OVER PUMP TECHNOLOGY IT ALREADY HAS SETTLED SIMILAR CASES AGAINST LA GEAR AND MERCURY INTERNATIONAL TRADING 9304290058 930429 LEISURE & ARTS BOOKSHELF KEYS OF THE KINGDOM BY JOE QUEENAN ONE APRIL MORNING IN 1958 A TALL HANDSOME 23YEAROLD PIANIST FROM KILGORE TEXAS GRABBED A HUGE CHUNK OF IMMORTALITY FOR HIMSELF BY MELTING THE HEARTS OF THE RUSSIAN PEOPLE AND WINNING THE FIRST SOVIETSPONSORED TCHAIKOVSKY INTERNATIONAL PIANO COMPETITION IT IS THE CONTENTION OF HIS BIOGRAPHER CHICAGO TRIBUNE ARTS CRITIC HOWARD REICH THAT VAN CLIBURN'S PERFORMANCE COMING AS IT DID AT A TIME OF FIERCE TENSION BETWEEN THE SOVIET UNION AND THE US MAY HAVE SET IN MOTION THE SERIES OF EVENTS THAT ULTIMATELY LED TO THE COLLAPSE OF TYRANNY IN THE SOVIET UNION IN 1991 THIS IS QUITE A NOVEL THEORY EVEN SO I REMAIN INCLINED TO GIVE SLIGHTLY MORE CREDIT TO RONALD REAGAN'S MASSIVE ARMS BUILDUP THAN TO MR CLIBURN'S IMPASSIONED RENDERING OF RACHMANINOFF'S THIRD PIANO CONCERTO NO MATTER HOW MUCH RUBATO AND GLISSANDO HE USED THAT MORNING MR REICH'S ASSERTION THAT MR CLIBURN'S EMOTIONAL PERFORMANCE MAY HAVE SPARKED A RUSSIAN POPULIST INSURGENCY THAT WOULD TAKE 33 MORE YEARS TO ACHIEVE FULL GERMINATION APPEARS IN THE FIRST TWO PARAGRAPHS OF VAN CLIBURN THOMAS NELSON 428 PAGES 2499 THIS COUPLED WITH THE DEDICATION OF THE BOOK TO THE PIANIST'S MOTHER GIVES THE READER A VERY CLEAR IDEA OF WHAT LIES AHEAD A LARGE GUSHY VALENTINE SINCE MR CLIBURN IS WIDELY THOUGHT OF TODAY AS AN EXTREMELY TALENTED MUSICIAN WHO NEVER QUITE BECAME THE MASTER THAT HIS EARLY TRIUMPHS SEEMED TO PROMISE AND SINCE SOME OBSERVERS FEEL THAT HIS SUBSERVIENCE TO HIS STAGE MOTHER RILDIA BEE MAY HAVE HAD A LOT TO DO WITH THIS THE AUTHOR'S OPENING BOWS STRESS THAT VAN CLIBURN IS ANYTHING BUT A CRITICAL BIOGRAPHY NO MR REICH HAS BEEN SMITTEN WRITTEN WITH THE COOPERATION OF THE PIANIST HIMSELF VAN CLIBURN IS A BELATED ATTEMPT TO WIN BACK FOR ITS SUBJECT SOME LOST LUSTER THE PIANIST WHO WOULD PROBABLY NEVER HAVE BECOME NEARLY AS FAMOUS HAD HE GONE BY HIS CHRISTIAN NAME OF HARVEY LAVAN CLIBURN DRASTICALLY REDUCED HIS CONCERT SCHEDULE IN 1974 AND STOPPED PERFORMING ENTIRELY IN 1978 RETURNING ONLY RECENTLY AND BRIEFLY TO THE STAGE HIS FATHER'S DEATH HAD LEFT HIM DISCONSOLATE 16 YEARS ON THE ROAD HAD BURNED HIM OUT BUT HE WAS ALSO FATIGUED BY THE RELENTLESS CRITICISM OF HIS SMALL REPERTORY AND OF HIS HEAVY DEPENDENCE ON SUCH SCHMALTZY FAVORITES AS TCHAIKOVSKY AND RACHMANINOFF WHILE IT IS NOT ABSOLUTELY NECESSARY TO BECOME IDENTIFIED WITH THE TRUE SIEGE GUNS BACH BEETHOVEN BRAHMS AND MOZART IN ORDER TO BE CONSIDERED A GREAT PIANIST IT CERTAINLY HELPS YOU DON'T HEAR MAURIZIO POLLINI A PIANIST OF CONSUMMATE SKILL PLAYING MUCH TCHAIKOVSKY OR GRIEG AND THE ONE PIANIST WHO DID PERFORM REPERTORY SIMILAR TO MR CLIBURN'S VLADIMIR HOROWITZ POSSESSED MORE TECHNICAL BRILLIANCE THAN THE WEARY TEXAN OR ANYONE ELSE FOR THAT MATTER IT IS INDICATIVE OF THE KIND OF CAREER MR CLIBURN HAS HAD THAT SOME 200 PAGES INTO THE BOOK THE READER HAS STILL ONLY GOTTEN UP TO HIS 24TH YEAR A TIME MAGAZINE COVER BOY AT AGE 23 AND STILL THE ONLY AMERICAN INTERPRETER OF RACHMANINOFF EVER TO GET A TICKERTAPE PARADE DOWN BROADWAY MR CLIBURN IS FOREVER LOCKED IN A SINGLE MOMENT IN TIME THE MORNING HIS EMOTIONAL PERFORMANCE ENSURED HIM THAT NO BACKROOM RIG JOB WOULD CHEAT HIM OUT OF AN AWARD HE CLEARLY DESERVED THE BEST PART OF THE BOOK IS THE HEFTY CHUNK DEVOTED TO THE COMPETITION DURING WHICH MR CLIBURN LOST 10 POUNDS AFTERWARD REDFACED SOVIET BIGWIGS HAD TO OBTAIN A PERSONAL OK FROM STALIN'S PROTEGE NIKITA KHRUSHCHEV TO AWARD ITS TOP PRIZE TO AN UNUGLY AMERICAN MR REICH DOES A VERY GOOD JOB OF RECREATING THE RANCOROUS ATMOSPHERE OF THE LATE '50S WHEN MR CLIBURN ACHIEVED THE AMAZING FEAT OF BECOMING A HERO TO TWO PEOPLES WHO ABSOLUTELY DESPISED ONE ANOTHER HE TRANSLATED HIS UNIQUE STATUS AS A CULTURAL COLOSSUS INTO A CAREER THAT INCLUDED THE BESTSELLING CLASSICAL PIANO RECORD OF ALL TIME AND SOLDOUT ENGAGEMENTS EVERYWHERE VAN CLIBURN CONTAINS SOME GEMLIKE MATERIAL SUCH AS TIME'S LUDICROUS DESCRIPTION OF THE SOPHISTICATED JUILLIARD GRADUATE AS A GANGLING SNUBNOSED MOPHAIRED BOY OUT OF KILGORE AS TEXAN AS PECAN PIE PRINTED BENEATH A SUSPICIOUS CLIBURN QUOTE AH SWEAR TO GOODNESS AH JUST CAN'T BELIEVE ALL THIS IS HAPPENIN' TO LI'L OLE VAN CLIBURN FROM THE PINEY WOODS OF EAST TEXAS ONCE THE BOOK MOVES INTO MR CLIBURN'S MATURE YEARS MR REICH RUNS INTO A WALL CLEARLY THE YOUNG MUSICIAN WAS FACED WITH A DIFFICULT ARTISTIC PROBLEM AS HE GREW OLDER HOW DO YOU MOTIVATE YOURSELF TO KEEP GROWING AS AN ARTIST AFTER YOU'VE HAD YOUR OWN TICKERTAPE PARADE MR REICH WOULD LIKE THE READER TO BELIEVE THAT THE PIANIST DID IN FACT BECOME THE BEST MUSICIAN HE COULD HAVE BEEN BUT VERY FEW PIANO AFICIONADOS ARE GOING TO BUY THAT TO BECOME A HOROWITZ MR CLIBURN WOULD HAVE NEEDED MUCH MORE ENERGY AND INTELLECTUAL CURIOSITY THAN HE COULD EVER MUSTER AFTER THE GLORY DAYS OF HIS YOUTH THAT HE DID NOT BECOME ONE OF THE TRULY GREAT MUSICIANS OF THE CENTURY IS NOT A TRAGEDY ON THE ORDER OF F SCOTT FITZGERALD OR ORSON WELLES OR EVEN BOB DYLAN OTHER EARLY BURNOUT VICTIMS BUT UNFULFILLED POTENTIAL IS ALWAYS A CAUSE FOR REGRET MR REICH'S REFUSAL TO RECOGNIZE THE BITTERSWEET ELEMENT IN THE STORY HE IS TRYING TO TELL STRIPS THE BOOK OF ITS EMOTIONAL POWER MR REICH IS A WELLMEANING BUT SHORTSIGHTED SYCOPHANT VAN CLIBURN A FIGURE OF CONSIDERABLE CHARM WARMTH AND MYSTERY DESERVES BETTER 9304290057 930429 INTERNATIONAL BRIEF TOTAL SA FRENCH OIL CONCERN BOLSTERS DEFENSES AGAINST TAKEOVER FRENCH OIL COMPANY TOTAL SA ANNOUNCED A COMPLEX SCHEME OF CAPITAL INCREASES AND CROSSED SHAREHOLDINGS THAT BOLSTERS ITS TAKEOVER DEFENSES AND AMASSES NEW FUNDS FOR ITS INVESTMENT PROGRAM WHEN THE OPERATIONS ARE COMPLETED TOTAL WILL HAVE ABOUT 25 BILLION FRANCS 133 BILLION IN FRESH CASH THREE NEW LONGTERM SHAREHOLDERS FRENCH STATEOWNED NUCLEAR FUEL GROUP COGEMA INDUSTRIAL CONGLOMERATE LYONNAISE DES EAUXDUMEZ SA AND THE BANK SOCIETE GENERALE DE FRANCE SA AND STAKES IN THOSE COMPANIES THE PROPOSAL WILL BE PUT TO TOTAL SHAREHOLDERS JUNE 2 A 407BILLIONFRANC CAPITAL INCREASE WILL BE RESERVED FOR THE THREE COMPANIES WHICH WILL ACQUIRE ABOUT 7 OF TOTAL'S CAPITAL THEY WILL MAKE UP A SECOND HARD CORE OF SHAREHOLDERS FOR TOTAL CONSOLIDATING THE COMPANY'S DEFENSE AGAINST A POTENTIAL RAIDER SINCE THE FRENCH GOVERNMENT REDUCED ITS DIRECT AND INDIRECT STAKE TO 15 FROM 34 LAST YEAR MOST OF TOTAL'S CAPITAL IS DISPERSED IN PUBLIC HANDS COMPANY CHAIRMAN SERGE TCHURUK INSISTED THAT THE OPERATION WOULDN'T DILUTE PERSHARE EARNINGS HOWEVER TOTAL'S SHARE PRICE FELL 22 OR 58 FRANCS TO 2635 FRANCS A SHARE ON THE PARIS BOURSE 9304290056 930429 WHO'S NEWS JAMES STOWERS III IS NAMED TWENTIETH CENTURY PRESIDENT JAMES E STOWERS III HAS BEEN APPOINTED PRESIDENT OF TWENTIETH CENTURY COS MANAGER OF MORE THAN 20 BILLION IN ASSETS MOSTLY IN MUTUAL FUNDS MR STOWERS SUCCEEDS HIS FATHER JAMES E STOWERS JR 69 YEARS OLD WHO FOUNDED THE KANSAS CITY MOBASED COMPANY IN 1958 THE ELDER MR STOWERS WILL REMAIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER A COMPANY SPOKESMAN CALLED THE APPOINTMENT ANOTHER STEP IN A TRANSITION BETWEEN FATHER AND SON MR STOWERS III 34 WHO IS BEING PROMOTED FROM EXECUTIVE VICE PRESIDENT WILL NO LONGER OVERSEE THE INVESTMENT TEAM THAT MANAGES TWENTIETH CENTURY'S STOCK FUNDS ALTHOUGH HE WILL REMAIN A MEMBER OF THAT TEAM BECAUSE TWENTIETH CENTURY RELIES HEAVILY ON A TEAM OF MANAGERS AND ALSO ON EXTENSIVE COMPUTER ANALYSIS FUND OBSERVERS DON'T THINK THAT MR STOWERS' CHANGE IN POSITION WILL MATERIALLY CHANGE THE MANAGEMENT OR PERFORMANCE OF THE FUNDS TWO OF TWENTIETH CENTURY'S FUNDS RANK AS THE SECOND AND THIRDBEST PERFORMING FUNDS IN THE 20 YEARS THROUGH MARCH 31 ACCORDING TO LIPPER ANALYTICAL SERVICES INC BUT SINCE EARLY 1992 THE FASTGROWING COMPANIES WHOSE STOCKS THE FUND GROUP MAINLY BUYS HAVE FALLEN OUT OF FAVOR WITH INVESTORS HURTING THE RECENT PERFORMANCE OF THE FUNDS 9304290055 930429 COMMODITIES GOLD DEFYING EARLY ROUND OF PROFITTAKING MOVES HIGHER AMID HEAVY TRADING VOLUME BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GOLD PRICES DEFYING AN EARLY BOUT OF PROFITTAKING MOVED HIGHER YESTERDAY IN HEAVY VOLUME AS DEMAND FOR THE METAL FROM INTERNATIONAL MONEYMANAGERS INTENSIFIED TRADERS AND ANALYSTS SAID GOLD FOR JUNE DELIVERY SETTLED 230 HIGHER AT 35440 ON NEW YORK'S COMMODITY EXCHANGE ON A DAY WHEN MANY ANALYSTS HAD EXPECTED TUESDAY'S MODERATE CONSOLIDATION TO CONTINUE THE ACTIVE JUNE CONTRACT HAD CLOSED DOWN 170 TUESDAY TO 35210 AN OUNCE TAKING A BREATHER FROM 630ANOUNCE SURGES ON BOTH FRIDAY AND MONDAY A LOT OF HEDGE FUNDS ARE IN THE MARKET SAID IAN MACDONALD WHO OVERSEES PRECIOUSMETALS TRADING FOR CREDIT SUISSE IN NEW YORK HE SAID TRADERS ARE SENSING THAT GOLD PRICES ARE HEADED HIGHER AND THERE ARE A LOT OF TRENDFOLLOWERS WHO ARE PREPARED TO JUMP IN VERY QUICKLY FRESH FUND BUYING MOSTLY ON TECHNICAL FACTORS HAD PUSHED GOLD AS HIGH AS 35580 UP 370 IN INTRADAY TRADING NEAR THE CLOSE IN NEW YORK DEALERS SAID NEWS EARLIER THIS WEEK THAT TWO LEADING FINANCIERS GEORGE SOROS AND SIR JAMES GOLDSMITH MADE SUBSTANTIAL BETS ON A RISING GOLD MARKET HAS DRAWN INVESTORS FROM AROUND THE WORLD TRADERS AND ANALYSTS SAID PERSISTENT WEAKNESS IN THE DOLLAR IS ALSO MAKING GOLD WHICH TENDS TO MOVE INVERSELY TO THE US CURRENCY AN ATTRACTIVE PLAY GLENN DUBIN PARTNER IN DUBIN & SWIECA CAPITAL MANAGEMENT A COMMODITYTRADING ADVISORY GROUP AND MONEYMANAGER SAID AMONG THE TRENDFOLLOWING MANAGERS THAT WE FOLLOW MOST OF THEM HAVE LONG POSITIONS IN GOLD AND SILVER A LONG POSITION IN THE FUTURES MARKETS IS A WAGER THAT THE PRICE OF THE CONTRACT WILL CLIMB THEIR POSITIONS ARE BASED MORE ON TECHNICAL FACTORS SUCH AS PRICE DIRECTION THAN ON FUNDAMENTAL FACTORS SUCH AS SUPPLY AND DEMAND MR DUBIN SAID THE TECHNICAL FACTORS SHOW THAT THE PRICE DIRECTION IS UP AND OPEN INTEREST HAS EXPANDED WHICH IS GENERALLY BULLISH OPEN INTEREST IS THE NUMBER OF FUTURES CONTRACTS THAT HAVE YET TO BE LIQUIDATED TRADING VOLUME ON THE COMEX SOARED TO AN ESTIMATED 55000 FUTURES CONTRACTS FOR GOLD AND 48000 FOR SILVER ANALYSTS NOTED A BIG DAY PRIOR TO THIS RALLY WAS 25000 CONTRACTS IN GOLD AND 15000 IN SILVER OBSERVED WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH MR O'NEILL WHO UNTIL RECENTLY WAS BEARISH ON GOLD SAID THAT THE PRECIOUS METAL HAS SHOWN IMPRESSIVE STRENGTH BUT STILL HAS TO PROVE ITSELF MORE AS IT MOVES TOWARD THE 360 RESISTANCE LEVEL A WORD OF CAUTION IN THIS MARKET IS THAT BEHIND EVERY RALLY IS LURKING THE THREAT OF HEAVY PRODUCER SELLING AND CENTRAL BANK SALES HE SAID IN RECENT MONTHS MR O'NEILL OBSERVED THERE HAS BEEN NO SIGN OF CENTRAL BANK SALES AND GIVEN THE CURRENT MONEY FLOW FROM SPECULATORS INTO GOLD THERE MAY NOW BE ENOUGH INVESTMENT DEMAND TO ABSORB PRODUCER SELLING AND PUSH GOLD FUTURES PRICES SIGNIFICANTLY HIGHER IN OTHER COMMODITY MARKETS YESTERDAY GRAINS & SOYBEANS PRICES OF CORN FUTURES CONTRACTS SETTLED MIXED AMID CONFLICTING WEATHER FORECASTS SOME FORECASTERS INCREASED THE CHANCES FOR RAIN THROUGH THE WEEKEND IN THE MIDWEST WHICH WOULD FURTHER DELAY THE CORN PLANTING SEASON ILLINOIS FARMERS NORMALLY PLANT ROUGHLY HALF OF THEIR CORN CROP BY EARLY MAY BUT THE UNUSUALLY WET SPRING HAS KEPT MOST FIELDS TOO MUDDY TO SUPPORT FARM EQUIPMENT AS A RESULT ONLY A FRACTION OF THE ILLINOIS CORN CROP HAS BEEN PLANTED SO FAR FORECASTS EARLIER THIS WEEK FOR DRIER WEATHER CAUSED CORN PRICES TO DECLINE TRADERS ARE CONCERNED THAT THE SLOW PLANTING SEASON WILL EVENTUALLY FORCE SOME FARMERS TO PLANT FEWER ACRES OF CORN THAN THEY HAD PLANNED IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR SEPTEMBER DELIVERY SETTLED UNCHANGED AT 23225 A BUSHEL HEAVY SELLING BY COMMODITY FUND MANAGERS DEPRESSED SOYBEAN PRICES ENERGY CRUDE OIL FUTURES PRICES WERE FLAT TO SLIGHTLY HIGHER ON LITTLE NEWS EXCEPT THIS WEEK'S INDUSTRY REPORT ON US OIL INVENTORIES TRADERS DESCRIBED THE REPORT RELEASED LATE TUESDAY AFTER FUTURES TRADING HAD CLOSED AS RELATIVELY BEARISH MAINLY BECAUSE OF AN INCREASE IN OPERATIONS OF US REFINERIES STILL IN YESTERDAY'S LACKLUSTER TRADING ON THE NEW YORK MERCANTILE EXCHANGE CRUDE CONTRACTS FOR JUNE AND JULY DELIVERIES WERE UP ONE CENT A BARREL EACH TO SETTLE AT 2019 AND 2039 RESPECTIVELY FUELS FUTURES WERE MIXED WITH MAY HEATING OIL DOWN A FRACTION TO SETTLE AT 5514 CENTS A GALLON AND MAY GASOLINE UP SLIGHTLY TO 5962 CENTS NATURAL GAS FUTURES PRICES FIRMED UP AGAIN WITH THE JUNE CONTRACT RISING 36 CENTS TO SETTLE AT 2354 A MILLION BRITISH THERMAL UNITS 9304290054 930429 DAUGHTERS' DAY PROMPTS COMPLAINT BY MEN'S GROUP THE NATIONAL CENTER FOR MEN SAID IT FILED AN ADMINISTRATIVE COMPLAINT WITH THE US DEPARTMENT OF EDUCATION OVER NEW YORK CITY SCHOOLS' RECOGNITION OF TAKE OUR DAUGHTERS TO WORK DAY IN ITS COMPLAINT THE BROOKLYNBASED GROUP THAT PROMOTES EQUAL RIGHTS FOR MEN ACCUSED THE NEW YORK SCHOOLS OF VIOLATING FEDERAL LAWS AGAINST SEX DISCRIMINATION BY ALLOWING GIRLS BUT NOT BOYS TO TAKE THE DAY OFF FROM SCHOOL TO GO TO WORK WITH PARENTS OR FRIENDS A SPOKESWOMAN FOR THE MAYOR'S OFFICE SAID SHE WAS UNAWARE OF THE COMPLAINT BUT SHE SAID THE DAY'S PROGRAM IS MEANT TO COMPENSATE FOR WHAT APPEARS TO BE A PATTERN OF MALE PREFERENCE NEW YORK BOARD OF EDUCATION OFFICIALS COULDN'T BE REACHED ROBERT G SMITH AN ATTORNEY FOR THE GROUP DISPUTED THE NEED FOR SUCH A DAY BOYS ARE THREE TIMES MORE LIKELY TO COMMIT SUICIDE ARE POORER STUDENTS AND WILL MAKE UP THE BULK OF OUR PRISON POPULATION HE SAID 9304290053 930429 WHO'S NEWS CONTINENTAL GRAIN CO CONTINENTAL GRAIN CO NEW YORK THIS CLOSELY HELD INTERNATIONAL AGRIBUSINESS CONCERN NAMED LAWRENCE G WEPPLER 44 YEARS OLD VICE PRESIDENT AND GENERAL COUNSELCORPORATE AND DAVID G FRIEDMAN 50 VICE PRESIDENT AND GENERAL COUNSELCOMMODITY MARKETING THE TWO WHO HAD BEEN DEPUTY GENERAL COUNSELS SUCCEED SHELDON L BERENS 63 WHO RETIRED AS VICE PRESIDENT AND GENERAL COUNSEL 9304290052 930429 MARKETING & MEDIA THREE TRUSTEES QUIT THE FREEDOM FORUM AMID STATE INQUIRY NEW YORK THREE TRUSTEES QUIT THE FREEDOM FORUM AFTER REPORTS ABOUT THE SPENDING HABITS OF THE CHARITABLE FOUNDATION AND AN INVESTIGATION BY STATE OFFICIALS THE FREEDOM FORUM WHOSE CHAIRMAN IS FORMER GANNETT CO CHAIRMAN ALLEN H NEUHARTH IS UNDER INVESTIGATION BY THE THE NEW YORK STATE ATTORNEY GENERAL'S OFFICE FOR POSSIBLE MISSPENDING OF FUNDS FORMERLY THE GANNETT FOUNDATION TWO YEARS AGO IT SOLD ITS 10 STAKE IN GANNETT BACK TO THE COMPANY FOR 670 MILLION THE FOUNDATION WHICH PROMOTES FREE SPEECH AND MEDIA ISSUES SAYS THERE IS NOTHING UNUSUAL ABOUT THE RESIGNATIONS AND THAT IN THE PAST SEVEN YEARS 17 TRUSTEES HAVE ROTATED ON AND OFF THE BOARD ACCORDING TO CHARLES L OVERBY THE GROUP'S PRESIDENT AND CHIEF EXECUTIVE OFFICER MR OVERBY A FORMER GANNETT EXECUTIVE REFERRED TO THE INVESTIGATION AS A REVIEW ALL THE ATTORNEY GENERAL WANTS TO KNOW IS IF THERE IS ANY EXTRAVAGANT SPENDING GOING ON HERE AND THE ANSWER IS NO HE SAID ONE OF THE THREE TRUSTEES DOLPH SIMONS JR PUBLISHER OF THE LAWRENCE KAN JOURNALWORLD CONFIRMED HE HAD QUIT BUT SAID IN AN INTERVIEW THE ATTORNEY GENERAL SITUATION WAS NOT A FACTOR IN MY RESIGNATION I CAN'T SPEAK FOR THE OTHERS ASKED WHY HE RESIGNED MR SIMONS HAD NO COMMENT HE SAID THE FOUNDATION'S TRUSTEES HAVE BEEN AWARE OF THE INVESTIGATION SINCE IT BEGAN ALMOST 1 1/2 YEARS AGO FRANK RHODES PRESIDENT OF CORNELL UNIVERSITY CONFIRMED THAT HIS DEPARTURE WAS BASED PRIMARILY ON DIFFERENCES OF OPINION CONCERNING THE PROPER ROLE OF DIRECTORS IN THE AUDIT PROCESS OF THE FOUNDATION BUT HE DECLINED TO ELABORATE THE THIRD TRUSTEE KAY ORR FORMER GOVERNOR OF NEBRASKA COULDN'T BE REACHED TO COMMENT THE FORUM HAS ELECTED TWO TRUSTEES IN THEIR PLACE FORMER ASTRONAUT ALAN SHEPARD AND COLUMNIST CARL ROWAN WHO HAS ROTATED ON AND OFF THE BOARD BEFORE A SPOKESWOMAN FOR THE STATE ATTORNEY GENERAL'S OFFICE SAID THE INVESTIGATION BY THE OFFICE'S CHARITIES BUREAU WAS CONTINUING AND SHE HAD NO IDEA WHEN IT WOULD BE CONCLUDED 9304290051 930429 BUSINESS BRIEF RIGGS NATIONAL CORP FIRSTQUARTER LOSS WIDENED 550 JOBS TARGETED FOR CUTS RIGGS NATIONAL CORP SAID ITS FIRSTQUARTER LOSS WIDENED TO 276 MILLION OR 110 A SHARE FROM 195000 OR ONE CENT A SHARE A YEAR AGO AND SAID IT EXPECTS TO CUT ABOUT 550 STAFF POSITIONS DURING THE YEAR THE WASHINGTON DC BANKING COMPANY ALSO SAID IT BEGAN A REVIEW OF ITS INTERNATIONAL OPERATIONS PARTICULARLY RIGGS AP BANK IN LONDON THE 1992 LOSS WAS ATTRIBUTED TO A CHARGE OF 138 MILLION FOR COSTS OF A RESTRUCTURING PROGRAM AND A DOUBLING OF THE LOAN LOSS PROVISION TO 13 MILLION RIGGS HAD ABOUT 2060 DOMESTIC EMPLOYEES AT THE START OF THE RESTRUCTURING PROGRAM IT SAID CONSIDERABLY FEWER THAN 550 PEOPLE WOULD ACTUALLY BE LAID OFF AFTER TAKING INTO ACCOUNT NORMAL STAFF TURNOVER AND ATTRITION IT SAID THE RESTRUCTURING SHOULD BE COMPLETED BY MID1994 FOR AN ANNUAL COST SAVINGS OF ABOUT 40 MILLION SEPARATELY STANDARD & POOR'S CORP SAID IT PLACED ITS SINGLEB SUBORDINATED DEBT RATING ON RIGGS ON CREDITWATCH FOR POSSIBLE DOWNGRADE TO A TRIPLEC CATEGORY ABOUT 65 MILLION OF DEBT IS AFFECTED 9304290050 930429 MEDIA NBA WILL SHARE RISK WITH NBC IN PACT RENEWAL BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN AN ATTEMPT TO FORGE A NEW MODEL FOR TV SPORTS RIGHTS NBC RENEWED ITS CONTRACT WITH THE NATIONAL BASKETBALL ASSOCIATION FOR 750 MILLION OVER FOUR YEARS A STEEP 25 INCREASE IN PRICE BUT THE NBA WHICH HAD THE ONLY MAJOR SPORTS CONTRACT THAT DIDN'T RESULT IN BIG LOSSES FOR TELEVISION IN RECENT YEARS HAD WANTED AN UNSPECIFIED SHARPER INCREASE IN EXCHANGE FOR THE LOWER BID THE LEAGUE GOT NBC TO AGREE TO AN UNUSUAL ARRANGEMENT FOR SHARING ANY AD REVENUE ABOVE A SPECIFIED LEVEL IN THE FOURTH YEAR OF THE PACT THE NEW CONTRACT WHICH STARTS WITH THE 199495 SEASON IS THE FIRST OF MANY MAJOR SPORTSRIGHTS PACKAGES SCHEDULED TO BE NEGOTIATED THIS YEAR TV RIGHTS FOR PROFESSIONAL FOOTBALL AND MAJOR LEAGUE BASEBALL TO BE HAMMERED OUT AMID A CURRENT GLUT OF SPORTS PROGRAMMING AND AFTER SEVERAL YEARS IN WHICH ALL THREE TELEVISION NETWORKS HAVE SUFFERED MAJOR SPORTS LOSSES ARE EXPECTED TO TAKE MAJOR PRICE CUTS YET EXECUTIVES AT NBC A UNIT OF GENERAL ELECTRIC CO INSIST THEY ARE VIRTUALLY GUARANTEED OF TURNING A PROFIT ON THE NEW NBA CONTRACT DESPITE THE HEFTY PRICE TAG THE NETWORK HAD ALREADY TURNED MODEST PROFITS ON THE FIRST TWO YEARS OF THE CURRENT FOURYEAR 600 MILLION DEAL WITHIN A FEW WEEKS IT IS EXPECTED TO ANNOUNCE MAJOR SPONSORSHIP DEALS WITH BIG ADVERTISERS THAT COULD GO A LONG WAY TOWARD COVERING MUCH OF THE NEW PRICE IN ADDITION NBC WOULDN'T HAVE TO BEGIN SHARING REVENUE WITH THE NBA UNDER THE AGREEDUPON 5050 SPLIT UNTIL THE FINAL YEAR OF THE NEW CONTRACT THAT MEASURE MOREOVER IS BASED ON THE ACCUMULATED REVENUES OVER THE LIFE OF THE CONTRACT SO THAT IF NBC FALTERS EARLY ON THE LEAGUE MAY NEVER GET TO SHARE IN THE LATER AD TAKE BUT THE NBA IS SO CONVINCED IT WILL REACH THE ADSHARING TRIGGER THAT NBC'S RIGHTS PAYMENTS ARE STRUCTURED SO THE NETWORK PAYS LESS IN THE FOURTH YEAR THAN IN THE THIRD THE LEAGUE IS BETTING IN ESSENCE THAT THE REVENUE PAYOUT WILL EASILY MAKE UP THE FOURTHYEAR PRICE DECLINE MOREOVER THE NBA IS PARTNERING WITH THE NETWORK IN LINING UP MAJOR SPONSORS THE LEAGUE IS CONSIDERED TO BE AT THE FOREFRONT OF MARKETING AMONG ALL MAJOR SPORTS AND BASKETBALL STARS ARE BY FAR THE MOST HANDSOMELY COMPENSATED PRODUCT ENDORSERS NBA OFFICIALS DECLINED TO SPECULATE ON WHETHER THE NBC DEAL COULD BE APPLIED TO THE NBA'S CURRENT CONTRACT NEGOTIATIONS WITH CABLETV'S TURNER NETWORK TELEVISION WHICH IS IN THE THIRD YEAR OF A FOURYEAR 275 MILLION DEAL IT MAY BE DIFFICULT HOWEVER FOR THE INNOVATIVE AD SALESSHARING ASPECT OF THE NBA DEAL TO BE DIRECTLY APPLIED TO OTHER MAJOR SPORTS FRANCHISES PERHAPS WITH THE EXCEPTION OF THE 1996 ATLANTA SUMMER OLYMPICS THE NETWORKS HAVE SAID THEY ARE LOOKING FOR HUGE DROPS IN THE RIGHTS FEES PERHAPS AS MUCH AS 50 FOR MAJOR LEAGUE BASEBALL AND A DECLINE OF PERHAPS 25 FOR FOOTBALL SPORTS NEGOTIATORS WILL PROBABLY BE LOATH TO AGREE TO TAKE AN UPSIDE RISK AT A TIME WHEN THE NETWORKS ARE DEMANDING SUCH MAJOR PRICE CUTS BUT THE CONCEPT OF REVENUE SHARING AT LEAST IS SURE TO BE LOOKED AT CLOSELY AS A WAY TO CUT RISKS ON BOTH SIDES THE ONLY OTHER SIMILAR DEAL PREVIOUSLY WAS NBC'S RIGHTS AGREEMENT FOR THE 1988 SUMMER OLYMPICS IN SEOUL SOUTH KOREA IN AGREEING TO PAY A THENRECORD 301 MILLION FOR TELEVISION RIGHTS NBC PROMISED TO SHARE AD REVENUE ABOVE A VERY HIGH LEVEL WHICH WAS ALMOST CERTAINLY TOO HIGH TO EVER TRULY KICK IN INDEED IT DIDN'T AND THE NBC NETWORK ITSELF WOUND UP TAKING A LOSS ON THE OVERALL CONTRACT IN BIDDING FOR THE CURRENT 600 MILLION CONTRACT NBC PAID MORE THAN TRIPLE WHAT CBS HAD PAID FOR THE PREVIOUS CONTRACT AND MANY AT THE TIME WERE SKEPTICAL THAT THE NETWORK COULD TURN A PROFIT BUT IN HOLDING THE INCREASE IN THE NEW CONTRACT TO 25 NBC HAS SHOWN THAT THE ERA OF EGO IS DEAD AMONG NETWORK SPORTS EXECUTIVES NBC SPORTS PRESIDENT DICK EBERSOL SAID AT A NEWS CONFERENCE YESTERDAY HIS REFERENCE WAS TO THE FRENZIED BIDDING IN THE LATE 1980S WHEN NETWORK SPORTS EXECUTIVES PAID ASTRONOMICAL AND ULTIMATELY UNWORKABLE SUMS JUST TO BE ABLE TO WALK INTO THEIR BOARDROOMS AND SAY WE WON MR EBERSOL SAID THE NBA PROBABLY COULD HAVE REAPED A HIGHER MINIMUM INCREASE IN TV FEES BY SIMPLY LETTING THE NBC AGREEMENT EXPIRE AND PUTTING THE RIGHTS UP FOR COMPETITIVE BIDDING BUT IT PASSED IN FAVOR OF THE ADSHARING CONCEPT NBC OFFICIALS BELIEVE THE NEW NBA PACKAGE WILL BE PROFITABLE AND ARE BETTING ITS AVERAGE 625 ANNUAL INCREASE IN RIGHTS FEES WON'T EXCEED THE ANNUAL INCREASE IN AD PRICES BY ALL THAT MUCH IN ADDITION THE NEW PACKAGE DOESN'T INCREASE THE NUMBER OF REGULARSEASON GAMES ON THE AIR DOESN'T INCREASE THE TOTAL NUMBER OF COMMERCIALS IN THOSE GAMES AND ADDS TWO PRIMETIME PLAYOFF GAMES WITH A 5 INCREASE IN PLAYOFF ADS THAT COULD PREVENT A GLUT OF SPORTS AD TIME THAT HAS HURT PAST SPORTS CONTRACTS IN THE FOOTBALL TV CONTRACT THE BIG THREE AND THE ESPN AND TURNER CABLE CHANNELS SIGNED IN 1990 ADS AND ONAIR GAMES ROSE A TOTAL 32 OVERALL WHICH HURT RATINGS AND AD PRICES NBC'S MR EBERSOL SAID THE NBA AND NBC ARRIVED AT THEIR DEAL AFTER NBC OPENED ITS BOOKS TO THE LEAGUE TO SHOW IT JUST HOW MANY ADS WERE SOLD AT WHAT PRICE AND HOW THEY WERE PACKAGED THE ONLY OTHER TIME NBC HAS WILLINGLY LET A SPORTS LEAGUE PEEK INTO ITS INTERNAL FINANCES WAS LAST YEAR WHEN IT WAS TRYING TO GET THE NATIONAL FOOTBALL LEAGUE TO GIVE IT A REBATE AN EFFORT THAT WAS UNSUCCESSFUL SAID KEN SHANZER NBC'S NO 2 SPORTS EXECUTIVE A CLEARLY PLEASED NBA COMMISSIONER DAVID J STERN SAID THE DEAL WAS VERY MUCH A PARTNERSHIP THAT WOULD BE BENEFICIAL TO BOTH SIDES THE ADSHARING TRIGGER PRICE UNDER THE NEW DEAL IS REACHED AFTER NBC TAKES OUT ITS COSTS AND A PROFIT SIMILAR TO WHAT IT HAS BEEN GETTING IN THE FIRST FEW YEARS OF THE CURRENT DEAL THE TWO SIDES HAVE BECOME INCREASINGLY ENTWINED BUSINESS PARTNERS OVER THE PAST THREE YEARS SHARING LICENSING DEALS FOR NBANBC PARAPHERNALIA AND JOINTLY DEVELOPING A SATURDAY MORNING PROGRAM PROMOTING HOOPS TO TEENS THE BASKETBALL LEAGUE PAYS NBC FOR THE AIR TIME AND HANDLES AD SALES FOR THE SHOW NBA INSIDE STUFF THE NEW PACT EXPANDS THE SATURDAY SHOW TO 52 WEEKS A YEAR INSTEAD OF HAVING IT GO OFF THE AIR FROM JULY TO OCTOBER DURING BASKETBALL'S OFFSEASON 9304290049 930429 CLINTON WEIGHS STRATEGY TO AID BOSNIA MUSLIMS TWOPRONGED PLAN JOINS LIFTING ARMS EMBARGO AND LIMITED AIR STRIKES BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS CONSIDERING A TWOTRACK POLICY TO HELP BOSNIA'S EMBATTLED MUSLIMLED GOVERNMENT COMBINING LIMITED AIR STRIKES AND THE LIFTING OF AN INTERNATIONAL ARMS EMBARGO MR CLINTON AND HIS TOP AIDES HAVE REFUSED TO DISCUSS THE SPECIFIC MIX OF OPTIONS UNDER CONSIDERATION AND INSIST THAT THE PRESIDENT HASN'T YET MADE A DECISION BUT THE TENOR OF THEIR DISCUSSIONS WITH BOTH DIPLOMATS AND US LAWMAKERS SUGGESTS THAT THIS TWOTRACK APPROACH IS BEING SERIOUSLY WEIGHED THE GOAL WOULD BE TO HELP REDRESS THE CURRENT MILITARY IMBALANCE ON THE GROUND WHICH FAVORS SERBIAN FIGHTERS THAT HAVE ALREADY SEIZED 70 OF BOSNIA AND HERZEGOVINA AND IMPROVE THE MUSLIM'S LEVERAGE AT THE DIPLOMATIC TABLE THAT IN TURN SOME OFFICIALS BELIEVE WOULD INCREASE THE CHANCES FOR A MORE EQUITABLE AND ENFORCEABLE POLITICAL SETTLEMENT PRESIDENT CLINTON SAID YESTERDAY THAT HIS DECISION ON BOSNIA POLICY COULD COME SOON AND HE SEEMED HOPEFUL THAT HE COULD WIN INTERNATIONAL AND DOMESTIC SUPPORT FOR A TOUGHER COURSE OF ACTION I WILL DECIDE WHAT I THINK THE RIGHT THING IS TO DO AND SEE IF I CAN PROD THE ALLIES AND CONGRESS TO GO ALONG HE SAID VICE PRESIDENT AL GORE HAS EMERGED AS A LEADING VOICE IN THE ADMINISTRATION FOR A MORE ACTIVIST APPROACH THE VIRTUE OF THE TWOTRACK APPROACH IS THAT IT DOESN'T RELY SOLELY ON AIR STRIKES TO HELP TURN THE MILITARY TIDE OR EVEN TO STOP ALL SERBIAN SHELLING EVERYWHERE INSTEAD THE AIR STRIKES WOULD PROVIDE SOME MILITARY COVER TO THE MUSLIMS AS THEY TRAIN AND REARM A PROCESS THAT COULD TAKE SEVERAL MONTHS AIR STRIKES WOULD ALSO SEND A WARNING TO SERBIAN FIGHTERS OF EVEN TOUGHER TIMES TO COME IN THE BEST OF CIRCUMSTANCES THAT WARNING COULD PERSUADE THE SERBS TO STOP SHELLING MUSLIM ENCLAVES AND TO RETURN TO THE BARGAINING TABLE IF NOT IT COULD AT LEAST SLOW THEIR LAND GRABS WHILE THE MUSLIMS BUILD UP THEIR STRENGTH BUT THERE ARE ALSO PRACTICAL AND POLITICAL PROBLEMS THAT COULD DISSUADE MR CLINTON FROM PURSUING THIS PATH THE ADMINISTRATION COULD HAVE A HARD TIME PERSUADING THE UNITED NATIONS SECURITY COUNCIL AND PARTICULARLY ITS CLOSEST EUROPEAN ALLIES TO LIFT THE UNIMPOSED ARMS EMBARGO THE EMBARGO WAS SUPPOSED TO CHOKE OFF ARMS TO ALL SIDES IN THE BLOODY CONFLICT BUT OVERWHELMINGLY FAVORS THE SERBS WHO GET THEIR ARMS AND SUPPORT FROM THE SERBIAN GOVERNMENT IN BELGRADE WHILE INCHING TOWARD THE IDEA OF AIR STRIKES IN RECENT DAYS THE BRITISH AND FRENCH CONTINUE TO OPPOSE LIFTING THE ARMS EMBARGO WHICH THEY FEAR WILL ONLY INCREASE THE KILLING AND JEOPARDIZE THEIR OWN PEACEKEEPERS ON THE GROUND THE EUROPEANS ARE STILL OPPOSED SAID ONE SENIOR OFFICIAL BUT THEY'VE ALSO BEEN MOVING IN RECENT DAYS AND ANY WESTERN MILITARY ACTION IN BOSNIA COULD POSE PROBLEMS FOR RUSSIAN PRESIDENT BORIS YELTSIN DESPITE HIS VICTORY IN LAST SUNDAY'S REFERENDUM MR YELTSIN STILL FACES A CONSERVATIVE PARLIAMENT THAT HAS ACCUSED HIM OF SELLING OUT RUSSIA'S TRADITIONAL SERBIAN ALLIES SECRETARY OF STATE WARREN CHRISTOPHER COULD TRAVEL TO EUROPE AND RUSSIA IN COMING DAYS TO DISCUSS OPTIONS CONGRESSIONAL VIEWS ON BOSNIA ARE ALSO SHARPLY SPLIT WHILE BOTH SENATE MAJORITY LEADER GEORGE MITCHELL D MAINE AND MINORITY LEADER ROBERT DOLE R KAN HAVE ENDORSED THE IDEA OF AIR STRIKES THE HOUSE LEADERSHIP IS FAR LESS CERTAIN THE RANK AND FILE IN BOTH PARTIES AND ON BOTH SIDES OF THE CAPITOL IS DEEPLY SPLIT WHILE SKEPTICAL OF THE ABILITY OF AIR STRIKES TO SHIFT THE MILITARY BALANCE IN BOSNIA THE PENTAGON IS MORE COMFORTABLE WITH THE IDEA OF STRICTLY LIMITED MESSAGE AIR STRIKES GEN MERRILL MCPEAK THE AIR FORCE CHIEF OF STAFF TOLD A CONGRESSIONAL COMMITTEE YESTERDAY THAT BOMBING BOSNIAN SERB GUN POSITIONS COULD BE EFFECTIVE WHILE POSING VIRTUALLY NO RISK TO ATTACKING PLANES BUT THERE IS STILL THE GNAWING FEAR IN THE PENTAGON THAT IF A LIMITED MILITARY INTERVENTION DOESN'T WORK THE US COULD STILL FOR REASONS OF CREDIBILITY OR INERTIA BE FORCED INTO A DEEPER MILITARY INVOLVEMENT MR CLINTON SIGNALED THE DILEMMA AT HIS MEETING WITH CONGRESSIONAL LEADERS THIS WEEK ACCORDING TO PARTICIPANTS THE PRESIDENT RAISED TWO CRITICAL QUESTIONS WOULD A SUCCESSFUL AMERICAN INTERVENTION DISCOURAGE SIMILAR TRAGEDIES FROM HAPPENING ELSEWHERE IN THE WORLD AND WHAT COST WOULD THERE BE IF AN AMERICAN INTERVENTION FAILED ACCORDING TO ONE SENIOR OFFICIAL NONE OF THE LAWMAKERS HAD CLEAR ANSWERS DAVID ROGERS CONTRIBUTED TO THIS ARTICLE 9304290048 930429 CREDIT MARKETS TREASURY FIVEYEAR AUCTION GETS SOLID DEMAND BUT RESULTS FAIL TO STIR UP BUYING ELSEWHERE BY THOMAS D LAURICELLA AND TERENCE DONNELLY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE TREASURY'S 11 BILLION AUCTION OF FIVEYEAR NOTES DREW UNEXPECTEDLY STRONG DEMAND FROM BOND DEALERS BUT THE AUCTION FAILED TO SPREAD EXCITEMENT TO THE BROADER BOND MARKET ALTHOUGH PRICES OF THE NEW FIVEYEAR NOTES ENDED HIGHER ON THE DAY THE BOND MARKET'S BELLWETHER SECURITY THE 30YEAR TREASURY BOND WAS QUOTED LATE AT A PRICE OF 102 21/32 DOWN LESS THAN 1/8 POINT OR LESS THAN 125 FOR A BOND WITH A 1000 FACE AMOUNT THE ISSUE'S YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE ROSE SLIGHTLY TO 691 FROM 690 TUESDAY THE LATEST 10YEAR NOTES ENDED UNCHANGED AT A PRICE OF 101 21/32 TO YIELD 601 THE LACK OF FRESH NEWS KEPT TRADING ACTIVITY LIGHT CAUSING PRICES TO MEANDER FOR MOST OF THE DAY THE AUCTION DEALERS SAID WAS THE ONLY IMPORTANT EVENT OF THE DAY IT WAS PRETTY QUIET BUT IT'S BEEN QUIET FOR THE LAST WEEK OR SO SAID MARK GRANT MANAGER OF FIXEDINCOME TRADING AT RODMAN & RENSHAW CAPTIAL GROUP INC IN CHICAGO THE TREASURY'S FIVEYEAR NOTES WERE AWARDED AT A YIELD OF 518 SLIGHTLY LOWER THAN THE 519 OR 520 MANY ANALYSTS EXPECTED REFLECTING GOOD INTEREST IN THE ISSUE THE YIELD ON THE WHENISSUED FIVEYEAR NOTE EDGED DOWN TO 516 BY THE END OF TRADING THE BIDTOCOVER RATIO WHICH MEASURES THE NUMBERS OF BIDS TENDERED COMPARED WITH THE NUMBER RECEIVED WAS A LOFTY 309TO1 THAT COMPARES WITH A RATIO OF 264TO1 AT THE PREVIOUS FIVEYEAR NOTE AUCTION IN MARCH AND AN AVERAGE RATIO OF 241TO1 IN THE SEVEN PREVIOUS FIVEYEAR NOTE AUCTIONS PARTICIPANTS SAID MUCH OF THE INTEREST IN THE FIVEYEAR TREASURY NOTES CAME FROM DEALERS WHO NEEDED THE SECURITIES TO CLOSE OUT SHORT POSITIONS IN A SHORT SALE DEALERS AND PROFESSIONAL TRADERS SELL BORROWED SECURITIES AND LATER SEEK TO PROFIT BY REPLACING WHAT WAS BORROWED WITH CHEAPER SECURITIES ESSENTIALLY THESE DEALERS ARE SPECULATING THAT PRICES WILL FALL SINCE PRICES OF FIVEYEAR NOTES HAVE DECLINED IN THE PAST SEVERAL DAYS MANY OF THESE SPECULATORS WERE ABLE TO COVER THEIR SHORTS AND MAKE A TIDY PROFIT DURING YESTERDAY'S AUCTION LATE LAST WEEK FOR EXAMPLE PRICES OF SOME FIVEYEAR NOTES WERE TRADING AT 100 14/32 YESTERDAY THE SAME NOTES WERE TRADING AT A PRICE OF 99 27/32 I THINK THE SHORTS WERE PRETTY HEFTY SAID JAMES KENNEY THE MANAGER OF GOVERNMENT BOND TRADING AT PRUDENTIAL SECURITIES INC INSTITUTIONAL INVESTORS AND INDIVIDUALS WERE MODEST BUYERS OF THE NEW FIVEYEAR NOTES NONCOMPETITIVE BIDS WHICH TEND TO COME FROM INDIVIDUALS AND SMALL OR MIDSIZE INSTITUTIONAL INVESTORS TOTALED 570 MILLION DOWN FROM 789 MILLION AT THE PREVIOUS AUCTION OVERALL THE MARKET REMAINED CONFINED TO BROAD RANGES THAT IT HAS HELD FOR WEEKS THERE IS NOT A LOT GOING ON SAID VAN SILER A MANAGING PARTNER AT RJ WALLS & CO IN PRINCETON NJ IT IS VERY VERY QUIET HERE ARE THE RESULTS OF THE TREASURY'S AUCTION ALL BIDS ARE AWARDED AT A SINGLE PRICE AT THE MARKETCLEARING YIELD RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THAT PRICE AND THE FACE VALUE THE NOTES ARE DATED APRIL 30 AND MATURE APRIL 30 1998 THE JUNK BONDS OF MESA INC SOARED YESTERDAY AFTER THE COMPANY SAID IT HAD REACHED A PRELIMINARY AGREEMENT WITH ITS BONDHOLDERS TO EXCHANGE ITS OUTSTANDING DEBT FOR A PACKAGE OF NEW BONDS AND CASH THE DALLAS COMPANY IS A LEADER IN THE EXPLORATION AND PRODUCTION OF NATURAL GAS MESA'S 135 SUBORDINATED NOTES DUE 1999 WERE BID AT 96 1/2 IN OVERTHECOUNTER TRADING UP ABOUT 6 1/2 POINTS FROM TUESDAY THAT IS A PRICE GAIN OF ABOUT 65 FOR A BOND WITH A 1000 FACE AMOUNT MESA'S 12 SUBORDINATED NOTES DUE 1996 WERE BID AT 91 1/2 UP FROM 85 TUESDAY ALSO A 65 GAIN BOTH ISSUES TRADED FLAT OR WITHOUT ACCRUED INTEREST ANALYSTS SAID THE EXCHANGE OFFER APPEARED MORE FAVORABLE TO BONDHOLDERS THAN HAD BEEN EXPECTED IN ADDITION THEY SAID RISING NATURAL GAS PRICES HELPED MAKE THE OFFER MORE ATTRACTIVE IT WAS CRITICAL THAT MESA COMPLETE THE EXCHANGE OFFER SOON IN LARGE PART BECAUSE THE COMPANY IS REQUIRED TO MAKE 292 MILLION OF INTEREST PAYMENTS ON MAY 1 ON ITS TWO SUBORDINATED NOTE ISSUES THE PRELIMINARY AGREEMENT WITH CERTAIN NOTEHOLDERS OWNING MORE THAN 70 OF THE OUTSTANDING NOTES CALLS FOR AN EXCHANGE OF THE EXISTING 600 MILLION IN SUBORDINATED NOTES AND THE 292 MILLION IN ACCRUED INTEREST FOR A PACKAGE OF NEW SECURITIES AND CASH TOTALING 62925 MILLION UNDER THE NEW OFFER BONDHOLDERS WILL RECEIVE NOTES PAYING A HIGHER RATE OF INTEREST THAN HAD BEEN EXPECTED SPECIFICALLY BONDHOLDERS WILL RECEIVE SECURED AND UNSECURED NOTES PAYING 1275 INTEREST INSTEAD OF THE 12 INTEREST MESA HAD PREVIOUSLY OFFERED P TIMOTHY LOHMANN AN ANALYST AT DUFF & PHELPS/MCM INC SAID THAT RISING NATURAL GAS PRICES PLAYED A MAJOR PART IN GAINING INVESTORS' PRELIMINARY CONSENT TO THE EXCHANGE OFFER SPOT NATURAL GAS PRICES ROSE TO A HIGH OF 280 PER MILLION BRITISH THERMAL UNITS FRIDAY THAT'S UP FROM ABOUT 210 SIX MONTHS AGO AND 147 A YEAR AGO INVESTORS BUYING MESA BONDS ARE ESSENTIALLY BETTING THAT NATURAL GAS PRICES WILL KEEP RISING HE SAID AMONG OTHER ACTIVE JUNK BONDS YESTERDAY STONE CONTAINER CORP'S BONDS CONTINUED TO SLIDE THE PAPERBOARD AND PACKAGING COMPANY'S 1075 DEBENTURES DUE 2002 FELL 4 1/2 POINTS TO 77 TRADERS SAID BUT ANALYSTS COULD NOT EXPLAIN THE DROP THERE IS NOTHING NEW OUT ON THE COMPANY AN ANALYST SAID THE NEWISSUE MARKET MEANWHILE WAS EXTREMELY QUIET BORROWERS AND INVESTORS PERHAPS SPOOKED BY THE PROSPECT OF SUDDEN INTEREST RATE MOVES DURING THE TREASURY'S FIVEYEAR NOTE AUCTION YESTERDAY CHOSE TO WATCH FROM THE SIDELINES AS EXPECTED TELECOMMUNICATIONS COMPANY GTE CORP IS SET TO OFFER A 500 MILLION ISSUE OF 30YEAR DEBENTURES THROUGH GOLDMAN SACHS & CO TODAY NONCALLABLE FOR 10 YEARS THE ISSUE IS RATED SINGLEA3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBPLUS BY STANDARD & POOR'S CORP BANKERS EXPECT THE ISSUE TO YIELD 095 PERCENTAGE POINT ABOVE THE TREASURY'S 30YEAR BOND THE PRIMARY SECTOR WAS THE HOT SPOT OF THE MUNICIPAL BOND MARKET AGAIN YESTERDAY WITH VERY AGGRESSIVE BIDDING FOR NEW YORK STATE'S 850 MILLION OF 1993 TAX AND REVENUE ANTICIPATION NOTES WHEN NEW YORK'S NOTES WERE PUT ON THE AUCTION BLOCK EARLY YESTERDAY 68 BIDS REPRESENTING 765 BILLION FLOODED IN SAID THE OFFICE OF STATE COMPTROLLER EDWARD REGAN THE NUMEROUS WINNING NET INTEREST COSTS RANGED FROM 2066 TO 2183 MOST OF THE NOTES WERE GIVEN 275 COUPONS AND YIELDS RANGING FROM 200 TO 210 THE TRANS HAVE BEEN RATED MIG1 BY MOODY'S SP1PLUS BY S&P AND F1PLUS BY FITCH INVESTORS SERVICE INC THOSE SHORTTERM RATINGS ARE THE HIGHEST ASSIGNED BY THE THREE RATING AGENCIES WITH THIS YEAR'S SPRING BORROWING THE SMALLEST IN 24 YEARS AND THE NOTES HIGHLY RATED FIRMS WERE PARTICULARLY ANXIOUS TO WIN SOME OF THE TRANS AND SELL THEM TO INVESTORS CONTINUED DEMAND FOR COLLATERAL FOR REAL ESTATE MORTGAGE INVESTMENT CONDUITS UNDERPINNED MORTGAGE SECURITIES PRICES THE 7 MORTGAGE SECURITIES ISSUED BY ALL THREE AGENCIES FOR MAY DELIVERY GAINED 1/32 WITH GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES FINISHING AT 100 8/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES ENDING AT 100 18/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES CLOSING AT 100 12/32 REMIC UNDERWRITERS HAVE BEEN BUSY THIS WEEK PREPARING TO CREATE DEALS THAT HAD BEEN IN THE PLANNING STAGES BUT NOT PROFITABLE ENOUGH TO COMPLETE TRADERS SAID TWO NEW REMICS AND THE INCREASE OF AN OUTSTANDING DEAL FOR A TOTAL OF 12 BILLION BACKED BY 15YEAR 6 AND 15YEAR 65 SECURITIES WERE ANNOUNCED YESTERDAY BRINGING THE WEEK'S ANNOUNCED AGENCY ISSUANCE TO ABOUT 35 BILLION DON SEGALAS HEAD OF MORTGAGE TRADING AT TUCKER ANTHONY INC SAID THE FIRMNESS IN MORTGAGE SECURITIES PRICES WAS DEALERDRIVEN THE STEEPNESS OF THE TREASURY YIELD CURVE CALLS OUT FOR DEALERS TO CREATE NEW REMICS HE SAID IN UNDERWRITING A REMIC DEALERS PURCHASE INTERMEDIATE OR LONGTERM SECURITIES AND THEN CARVE UP THE PRINCIPAL AND INTEREST INTO A HOST OF CLASSES SPANNING THE MATURITY SPECTRUM WITH MANY OF THE CLASSES TIED TO SHORTTERM RATES WHICH ARE CONSIDERABLY LOW RELATIVE TO BOND YIELDS IT JUST MAKES SENSE TO DO REMICS AT THIS JUNCTURE MR SEGALAS SAID 9304290047 930429 BUSINESS BRIEF EQUITABLE RESOURCES INC OIL NATURALGAS PRODUCTION IS EXPECTED TO INCREASE IN '93 EQUITABLE RESOURCES INC EXPECTS TO PRODUCE RECORD VOLUMES OF NATURAL GAS AND OIL IN 1993 THE ENERGY CONCERN TOLD AN ANALYSTS' MEETING IN NEW YORK THE PITTSBURGH COMPANY PREDICTS AN 8 INCREASE IN NATURALGAS VOLUME AND A 6 INCREASE IN OIL VOLUME FROM ITS 1992 LEVELS IT SAID GAS PRODUCTION SHOULD REACH 51 BILLION TO 53 BILLION CUBIC FEET AND OIL PRODUCTION SHOULD REACH 25 MILLION TO 26 MILLION BARRELS EQUITABLE RESOURCES ALSO SAID THE EXPECTED HIGHER VOLUME FOR NATURAL GAS SHOULD COINCIDE WITH HIGHER AVERAGE SELLING PRICES THE COMPANY SAID ITS CURRENT ESTIMATE FOR 1993 IS 215 A THOUSAND CUBIC FEET COMPARED WITH AN AVERAGE SELLING PRICE OF 192 A YEAR AGO EQUITABLE RESOURCES IS INVOLVED IN NATURALGAS DISTRIBUTION TRANSMISSION AND STORAGE AND GAS AND OIL EXPLORATION DEVELOPMENT AND PRODUCTION 9304290046 930429 INTERNATIONAL BRIEF BAYER AG PRETAX PROFIT DECLINED 21 SALES 76 IN FIRST QUARTER GERMAN CHEMICALS MAKER BAYER AG REPORTED FIRSTQUARTER PRETAX PROFIT SKIDDED 21 TO 640 MILLION MARKS 404 MILLION FROM A YEAR EARLIER A DECLINE IT ATTRIBUTED PRIMARILY TO ITS BUSINESS IN EUROPE SALES SLIPPED 76 TO 1034 BILLION MARKS IN A QUARTERLY REPORT RELEASED AT THE COMPANY'S ANNUAL MEETING BAYER SAID HALF OF THE SALES DECLINE WAS FROM LOWER QUANTITIES SOLD AND HALF FROM FALLING PRICES AND UNFAVORABLE CURRENCY MOVEMENTS SALES BY DOMESTIC OPERATIONS DROPPED 15 TO 385 BILLION MARKS SALES BY UNITS ABROAD FELL 26 TO 649 BILLION MARKS ALL OF BAYER'S DIVISIONS REPORTED SALES DECLINES BAYER SAID IT DIDN'T EXPECT THE ECONOMIC ENVIRONMENT TO IMPROVE IN THE SECOND QUARTER ADDING THAT WEAK DEMAND AND FALLING PRICES WOULD CONTINUE TO PRESSURE ITS RESULTS 9304290045 930429 BUSINESS BRIEF LEWIS GALOOB TOYS INC FIRSTPERIOD LOSS WIDENS AS TOY MAKER'S SALES SLUMP LEWIS GALOOB TOYS INC A MAKER OF TOYS AND VIDEO GAMES HIT BY A SALES SLUMP AFTER A STRONG HOLIDAY SEASON SAID ITS LOSS WIDENED TO 14 MILLION IN THE FIRST QUARTER THE LOSS OF 23 CENTS A SHARE COMPARES WITH A LOSS OF 782000 OR 17 CENTS A SHARE IN THE YEARAGO QUARTER SALES IN THE QUARTER PLUNGED 35 TO 273 MILLION FROM 418 MILLION THE RESULTS WERE SLIGHTLY WORSE THAN ANALYSTS' EXPECTATIONS BUT GALOOB'S STOCK ROSE 25 CENTS TO 3625 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING GALOOB BASED IN SOUTH SAN FRANCISCO CALIF POSTED ITS FIRST PROFITABLE QUARTER SINCE 1989 IN LAST YEAR'S FOURTH PERIOD LARGELY BECAUSE OF THE SUCCESS OF GAME GENIE VIDEO GAME ENHANCERS AND MICRO MACHINES MINIATURE VEHICLES BUT GALOOB SAID GAME GENIE SALES DROPPED TO 92 MILLION IN THE FIRST QUARTER FROM 148 MILLION IN THE YEAREARLIER PERIOD AND THAT OVERALL SALES WERE HURT BY A TREND AMONG RETAILERS OF DEFERRING ORDERS AND SHIPMENTS 9304290044 930429 BUSINESS BRIEF NATIONAL STEEL CORP LOWER PRICES HIGHER COSTS LED TO FIRSTQUARTER LOSS NATIONAL STEEL CORP POSTED A FIRSTQUARTER LOSS CITING LOWER PRICES HIGHER COSTS AND PROBLEMS WITH A GLAVANIZING LINE THE STEELMAKER HAD A LOSS OF 537 MILLION OR 219 A SHARE COMPARED WITH A YEAREARLIER PROFIT OF 572 MILLION OR 207 A SHARE THE 1992 QUARTER INCLUDED A GAIN OF 763 MILLION OR 299 A SHARE REFLECTING A CHANGE IN THE WAY THE MISHAWAKA IND COMPANY ACCOUNTS FOR INCOME TAXES SALES ROSE 4 TO 5874 MILLION FROM 5641 MILLION THE COMPANY WHICH WENT PUBLIC IN LATE MARCH BLAMED THE LOSS ON TWO OUTAGES AT AN ELECTROLYTIC GALVANIZING LINE COSTS WERE ALSO HIGHER DUE TO THE STARTUP AN 85OVEN COKE BATTERY AND 148 MILLION IN EXPENSES FROM NATIONAL'S ADOPTION OF NEW ACCOUNTING STANDARDS FOR RETIREE HEALTH BENEFITS NATIONAL IS AMORTIZING ITS 590 MILLION OBLIGATION OVER 20 YEARS WE EXPECT TO SEE SIGNIFICANT IMPROVEMENTS IN OUR OPERATIONS OVER THE NEXT THREE QUARTERS RONALD H DOERR PRESIDENT SAID IN A STATEMENT 9304290043 930429 MARKETING BRIEF NOTED PAYPERVIEW VIEWER'S CHOICE WILL USE DIGITAL COMPRESSION TECHNOLOGY TO INCREASE ITS CHANNELS TO FIVE IN AUGUST TO ITS CURRENT THREE CHANNELS OF PAYPERVIEW MOVIES SPORTS AND ENTERTAINMENT EVENTS THE US'S LARGEST PAYPERVIEW NETWORK WILL ADD TWO MOVIE CHANNELS ONE SATELLITE TRANSPONDER IS USUALLY REQUIRED FOR EACH CHANNEL SIGNAL BUT USING GENERAL INSTRUMENT CORP'S DIGICIPHER DIGITAL COMPRESSION SYSTEM FOUR CHANNELS WILL BE DIGITALLY COMPRESSED TO FIT ON ONE TRANSPONDER A FIFTH CHANNEL WILL STILL BE SENT AS AN ANALOG SIGNAL ON ONE TRANSPONDER VIEWER'S CHOICE IS OWNED BY A COLLECTION OF CABLE COMPANIES INCLUDING COMCAST CORP CONTINENTAL CABLEVISION INC AND VIACOM INC MAGAZINES WELSH PUBLISHING GROUP INC ONE OF THE LARGEST PUBLISHERS OF CHILDREN'S MAGAZINES WILL LAUNCH AN ENTERTAINMENT AND STYLE MAGAZINE FOR TEENAGERS THIS AUGUST CALLED QUAKE AS IN YOUTHQUAKE THE MAGAZINE WILL STICK TO COVERAGE OF FASHION AND TRENDS MEDIA ENTERTAINMENT AND OVERALL YOUTHFUL STYLE INSTEAD OF OFFERING ADVICE TO TEENS AS COMPETITORS SEVENTEEN OR YM DO ONE ISSUE IS PLANNED THIS YEAR IT GOES BIMONTHLY IN 1994 9304290042 930429 BUSINESS BRIEF CLAYTON HOMES INC FIRM INDICATES IT WILL POST GAINS IN ITS FOURTH QUARTER CLAYTON HOMES INC SAID IT IS COMFORTABLE WITH ANALYSTS' ESTIMATES FOR AS MUCH AS A 224 INCREASE IN EARNINGS FOR ITS FOURTH QUARTER ENDING JUNE 30 ANALYSTS' ESTIMATES ARE FOR PROFIT TO INCREASE TO BETWEEN 17 MILLION OR 39 CENTS A SHARE AND 18 MILLION OR 40 CENTS A SHARE FROM 147 MILLION OR 32 CENTS A SHARE FULLY DILUTED A YEAR EARLIER THE YEARAGO PERSHARE FIGURE REFLECTS A 5FOR4 STOCK SPLIT PAID IN DECEMBER RICHARD B RAY CHIEF FINANCIAL OFFICER SAID THE KNOXVILLE TENN COMPANY IS ALSO COMFORTABLE WITH ANALYSTS' ESTIMATES FOR REVENUE TO INCREASE TO BETWEEN 136 MILLION AND 140 MILLION FROM THE 114 MILLION A YEAR AGO AS ONE OF THE BIGGEST MANUFACTUREDHOUSING COMPANIES IN THE COUNTRY CLAYTON IS BENEFITING FROM AN INDUSTRYWIDE TREND OF STRONGLY RESURGING SALES MR RAY SAID 9304290041 930429 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY LOURDES LEE VALERIANO CATALOG COMPANIES STEP UP EXPANSION ABROAD AS INITIAL FORAYS SHOW PROMISE MORE DIRECT MARKETERS PRESS PLANS TO GO OVERSEAS TO GAIN FASTER GROWTH ABOUT A DOZEN MAJOR CONCERNS NOW DO 25 TO 50 OF THEIR SALES OUTSIDE THE US SAYS CONSULTANT ARNOLD FISHMAN TWO YEARS AGO HE SAYS MANY WERE JUST TESTING FLEDGLING OVERSEAS OPERATIONS VIKING OFFICE PRODUCTS INC LOS ANGELES STARTED ITS BRITISH BUSINESS IN 1990 AND EXPANDED TO FRANCE LAST YEAR EUROPEAN SALES MADE UP 43 OF REVENUES IN THE NINE MONTHS ENDED MARCH 31 LAND'S END MEANWHILE WILL OPEN ITS FIRST BRITISH PHONE CENTER AND WAREHOUSE THIS AUGUST AFTER TWO YEARS OF TESTING THE MARKET BY USING A THIRD PARTY FOR ORDERS SHIPPING AND COLLECTION IN A SIGN OF THE TIMES TRANSATLANTIC CATALOG CORP A BRITISHAMERICAN VENTURE HAS JUST BEEN FORMED TO AID US FIRMS SETTING UP SHOP IN THE UK AND BRITISH COMPANIES INTERESTED IN THE US EUROPE IS THE FOCUS OF MUCH OF THE ACTIVITY BECAUSE OF ITS PROMISE AS A COMMON MARKET SAYS RICHARD GRUNSTEN OF GSP MARKETING SERVICES IN CHICAGO NEW PACKAGING HITS STORE SHELVES AS COMPANIES TAKE A LESSISMORE APPROACH MANUFACTURERS STRIVE TO SAVE ON PACKAGING MATERIALS AND GAIN SOME GREEN CACHET PEPPERIDGE FARM INC PUTS GARLIC BREAD IN AN ALLPLASTIC BAG THAT CAN GO INTO AN OVEN OR MICROWAVE BUT IS 24 LIGHTER THAN REGULAR FOILANDPAPER BAGS TO HOLD REFILLS OF ITS LIQUID CLEANERS L&F PRODUCTS IN NEW JERSEY SWITCHES FROM PLASTIC BOTTLES TO PLASTICSAVING POUCHES THAT FEATURE SCREWON CAPS MEANWHILE CAN MAKERS WORK AT SHRINKING TOPS OF BEVERAGE CANS TO SAVE ON ALUMINUM MOST TOPS ARE 2 3/8 INCHES IN DIAMETER ABOUT HALF THE CAN BODY'S SIZE BUT ANHEUSERBUSCH COS SWITCHES TO CANS WITH TOPS OF ONLY 2 1/4 INCHES TAKING ANOTHER TACK AMERICAN NATIONAL CAN CO DEVISES CANS WITH FLUTED BODIES THE FLUTING MAKES A STURDIER CAN USING LESS METAL IN TESTS A FLUTED CAN WITH A 2 1/8INCH TOP A MOCK TRIAL FINDS CORPORATE GIVERS GUILTY OF FAILING FUTURE COMMUNITIES SET IN THE YEAR 2000 THE PEOPLE VS CORPORATE GRANTMAKERS A NOVEL SESSION AT THE COUNCIL ON FOUNDATIONS' CONFERENCE IN DALLAS THIS WEEK ASKED A JURY OF CORPORATE GRANTMAKERS WHETHER THEIR PEERS IN 1992 AND 1993 FAILED TO INVEST IN THE CITIZENS OF THE FUTURE CORPORATE FUNDERS COULD HAVE PROVIDED THE GLUE TO MEND AILING COMMUNITIES BUT INSTEAD TOLERATED AN APPALLING WRECKAGE OF HUMAN LIFE SAID DAVID HARRISON THE PROSECUTOR AND HEAD OF THE UNIVERSITY OF WASHINGTON'S NORTHWEST POLICY CENTER DEFENSE COUNSEL EUGENE WILSON HEAD OF THE ARCO FOUNDATION CONCEDED COMPANIES WERE STUNNED BY THE URBAN VIOLENCE IN THE EARLY '90S BUT ADDED WE DID THEN KNOW WHAT WORKED AND WE WERE INVESTING TO GIVE HOPE WHERE HOPE HAD NOT EXISTED BUT EVEN SOME OF THE SYMPATHETIC EXPERT WITNESSES INCLUDING ONE FROM LEVI STRAUSS WHOSE PROGRAM WAS ONE CITED AS DEFENSE EVIDENCE AGREED THAT TOO FEW FIRMS HAD EFFECTIVE PROGRAMS IN 1993 THE AUDIENCE VOTED TO CONVICT BY 64 TO 33 THE ROBES FOR JUDGE JOHN MASON PRESIDENT OF THE MONSANTO FUND WERE BORROWED FROM MR WILSON'S CHURCH MODULAR CONSTRUCTION MAKES HEADWAY IN DIPLOMATIC CIRCLES THE STATE DEPARTMENT MOVES TOWARD USING US FACTORYMADE BUILDINGS FOR EMBASSIES AS A WAY OF ENSURING SECURITY AND CUTTING CONSTRUCTION TIME A MODULAR EMBASSY MADE BY KULLMAN INDUSTRIES AND MF MALONE WILL BE BUILT IN GUINEABISSAU THIS YEAR LASERTAGGED SALMON IS THE GOAL OF AN OREGON GRADUATE INSTITUTE PROJECT RESEARCHERS ARE TESTING LASERS FOR MARKING HATCHERY SALMON ALLOWING ANGLERS TO TELL THEM FROM WILD SALMON LASERS WHICH LEAVE A WHITE SPOT COULD ALLOW FOR MASS MARKING HATCHERIES NOW CLIP FINS TO TAG SALMON BRAILLE CREDIT CARDS SAVE VISUALLY IMPAIRED USERS THE TROUBLE OF MEMORIZING ACCOUNT NUMBERS AND EXPIRATION DATES THE CARDS WHICH ALSO CONTAIN THE DATA IN REGULAR RAISED PRINT ARE ISSUED BY NORWEST CORP BANKS THEY JOIN BRAILLE PHONE CARDS SAYS THE AMERICAN FOUNDATION FOR THE BLIND A PRICE SPIKE IN CHEESE PUTS A SQUEEZE ON SOME SUPERMARKETS CHEDDAR COMMODITIES PRICES OFTEN VOLATILE CLIMBED 20 IN THE PAST TWO MONTHS ED JESSE OF THE UNIVERSITY OF WISCONSIN MADISON SAYS THE JUMP WAS FED BY FEARS THAT A FEED PROBLEM NOW WILL CURB MILK SUPPLIES AND HENCE CHEESE OUTPUT DOWN THE ROAD BUT STORES HOLD THE LINE ON RETAIL PRICES TO KEEP MARKET SHARE THE KROGER SUPERMARKET CHAIN KEEPS ITS PRIVATE LABEL CHEDDAR PRICED BELOW THAT OF KRAFT WHICH IT SAYS HASN'T RAISED PRICES PROFIT MARGINS HOWEVER ARE UNDER PRESSURE SAYS KROGER A&P CITING COMPETITION HELD OFF RAISING PRICES AT FIRST BUT RECENTLY PUT THROUGH A MODEST INCREASE OTHERS LIKE CALIFORNIA CHAIN VONS PUT OFF A RISE BY USING UP SUPPLIES BOUGHT BEFORE OR EARLY IN THE PRICE SURGE MEANWHILE CRYSTAL FOODS A BOSTON DISTRIBUTOR CONSIDERS MORE IMPORTS THE PRICE SPIKE MAY MAKE PRICIER FOREIGN CHEDDARS EASIER TO SELL IT SAYS ON THE NATIONAL CHEESE EXCHANGE PRICE FOR 40POUND BLOCK CHEDDAR IS UP 23 CENTS SINCE MARCH TO 139 A POUND BRIEFS AN EATINGWITHCHOPSTICKS CONTEST IS HELD TONIGHT BY CHINAUS FRIENDSHIP STORE EASTLAKE OHIO WHICH SELLS CHINESE GOODS TO CELEBRATE HIGH MARKS FOR CLEANING TIMES SQUARE STREETS SANITATION WORKERS NEXT WEEK WILL LUNCH ON BLANKETS IN THE MIDDLE OF A THOROUGHFARE 9304290040 930429 HOME OIL STAKE OF 60 IS SOLD BY O&Y UNIT INVESTMENT DEALERS' GROUP SPENDS 3117 MILLION RESALE TO PUBLIC PLANNED BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL GULF CANADA RESOURCES LTD AND OLYMPIA & YORK DEVELOPMENTS LTD SAID THEY SOLD THEIR COMBINED 60 INTEREST IN HOME OIL CO TO A GROUP OF INVESTMENT DEALERS FOR TOTAL PROCEEDS OF ABOUT 396 MILLION CANADIAN DOLLARS US3117 MILLION THE MOVE BRINGS TO AN END ALMOST A YEAR OF SPECULATION SURROUNDING THE FATE OF HOME OIL THE CONTROLLING INTEREST WAS FIRST PUT ON THE BLOCK LAST MAY IN A BID TO RAISE CASH FOR TORONTO'S REICHMANN FAMILY THEN FIGHTING TO RETAIN CONTROL OF ITS DEBTBURDENED REALESTATE EMPIRE THE SALE COMES TOO LATE FOR THE REICHMANNS WHO RELINQUISHED EXECUTIVE CONTROL OF O&Y TO A COURTAPPPOINTED ADMINISTRATOR AND GAVE CREDITORS THE RIGHT TO SEIZE COLLATERAL AS PART OF THE EFFORT TO EMERGE FROM CANADIAN BANKRUPTCY PROTECTION PROCEEDINGS EARLIER THIS YEAR BUT GULF WHICH WILL RECEIVE C145 MILLION IN PROCEEDS PROBABLY WILL SEE SOME IMPROVEMENT IN ITS FINANCIAL PROSPECTS AS A RESULT GULF IS 75 OWNED BY O&Y BUT IS CONTROLLED BY O&Y'S CREDITORS THE SALE WILL HELP US MOVE FORWARD SAID ALLEN SELLO CHIEF FINANCIAL OFFICER OF GULF HE SAID THE NATURE OF THE TRANSACTION ALLOWS GULF TO OBTAIN THE LARGEST POSSIBLE PROCEEDS IN THE SHORTEST POSSIBLE TIME TYPICALLY AN OUTRIGHT PURCHASE WOULD HAVE BEEN SUBJECT TO FINANCING DUE DILIGENCE AND OTHER THINGS THAT TAKE A LOT OF TIME HE SAID MR SELLO SAID EARLIER YESTERDAY AT GULF'S ANNUAL MEETING THAT THE COMPANY HAD RECEIVED EXPRESSIONS OF INTERESTS IN THE HOME OIL BLOCK FROM A NUMBER OF NORTH AMERICAN INDUSTRY PARTICIPANTS AMONG THE COMPANIES SAID TO BE INTERESTED IN HOME OIL ARE BOW VALLEY INDUSTRIES LTD AND BRITISH GAS PLC MR SELLO SAID UNDERWRITERS ARE FINDING IT EASY TO PLACE THE ISSUE WHICH WAS ANNOUNCED LATE LAST NIGHT THERE'S GOOD DEMAND FOR OIL AND GAS ISSUES RIGHT NOW HE SAID ANALYSTS HAVE NOTED THAT HOME IS ONE OF THE LESS EXPENSIVE OF CANADA'S OIL AND GAS STOCKS WHICH COLLECTIVELY HAVE BENEFITED FROM THE RECENT STRENGTH IN THE PRICE OF NATURALGAS AND CRUDEOIL PRICE STABILITY A REPORT PUBLISHED LAST MONTH BY PETERS & CO A CALGARY INVESTMENT RESEARCH FIRM RATED HOME OIL A BUY OR A HOLD AT C1475 A SHARE NOTING ITS EXTENSIVE GAS RESERVES LARGE HOLDINGS OF UNDEVELOPED LANDS LOWER DEBT AND RISING CASH FLOW HOME OIL IS POSITIONED FOR A TURNAROUND THE REPORT SAID CALLING FOR 1993 EARNINGS OF ABOUT C119 A SHARE COMPARED WITH NET INCOME OF C69 MILLION OR 17 CENTS A SHARE IN 1992 UNDERWRITERS PROPOSE TO RESELL THE HOME SHARES TO THE PUBLIC AT C1675 A SHARE IN TRADING ON THE AMERICAN STOCK EXCHANGE YESTERDAY THE STOCK CLOSED AT 13 OFF 25 CENTS MR SELLO SAID GULF EVENTUALLY WILL APPLY ITS SHARE OF THE PROCEEDS TO REDUCING ITS DEBT LOAD WHICH AT MARCH 31 TOTALED C155 BILLION ANALYSTS HAVE SAID THE SALE OF THE HOME STAKE IS A PRECONDITION FOR AN IMPROVEMENT IN GULF'S SHARE PRICE WHICH ENDED THE DAY YESTERDAY AT 3562 UP 3/16THS IN TRADING ON THE AMEX MOST OF O&Y'S SHARE OF THE PROCEEDS PROBABLY WILL GO TO SOME OF ITS CREDITORS MR SELLO SAID THE HOME OIL SHARES HELD BY O&Y SERVED AS SECURITY FOR A LOAN TAKEN OUT BY A UNIT OF O&Y GW UTILITIES LTD THE SIZE TERMS AND CONDITIONS OF THAT LOAN WEREN'T IMMEDIATELY AVAILABLE 9304290039 930429 BUSINESS BRIEF SHERWINWILLIAMS CO FIRM EXPECTS TO INCREASE ITS 1993 SALES EARNINGS SHERWINWILLIAMS CO EXPECTS TO INCREASE SALES AND EARNINGS THIS YEAR BUT THE AMOUNT OF GAIN WILL DEPEND ON HOW RAPIDLY CONSUMER SPENDING GROWS SAID JOHN G BREEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER IF SALES INCREASES ARE IN THE HIGH SINGLE DIGITS WE WILL EARN TOWARD THE UPPER END OF ANALYST ESTIMATES MR BREEN SAID IN AN INTERVIEW PARTLY BECAUSE OF UNCERTAINTY ABOUT THE CLINTON ADMINISTRATION'S ECONOMIC PLAN IT'S DIFFICULT TO PREDICT SALES GAINS HE SAID ANALYST 1993 EARNINGS ESTIMATES FOR THE BIG PAINT COMPANY IN CLEVELAND RANGE FROM 175 TO 183 A SHARE IN 1992 SHERWINWILLIAMS EARNED 1446 MILLION OR 163 A SHARE BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGES AFTER A CHARGE FOR CHANGES IN ACCOUNTING FOR POSTRETIREMENT EMPLOYEE BENEFITS AND INCOME TAXES NET INCOME WAS 629 MILLION OR 71 CENTS A SHARE SALES LAST YEAR WERE 275 BILLION 9304290038 930429 HEARD ON THE STREET PHILIP MORRIS'S BIG HOLDERS PRESS FOR BUYBACK BUT MANY ANALYSTS DOUBT IT WOULD HELP STOCK BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LARGE SHAREHOLDERS ARE CLAMORING FOR PHILIP MORRIS TO ANNOUNCE A BIG SHAREBUYBACK PROGRAM WHICH THEY HOPE WILL PROMPT A REBOUND IN THE COMPANY'S BATTERED STOCK DON'T BET ON THE REBOUND EVEN IF THE SHARE BUYBACK DOES COME TO PASS A BIG BOUNCE BACK BY THE STOCK ISN'T LIKELY ANYTIME SOON DURING THE PAST SEVEN MONTHS PHILIP MORRIS SHARES ONCE A FAVORITE OF GROWTHSTOCK INVESTORS HAVE EXPERIENCED AN IGNOMINIOUS PLUNGE SINCE SEPTEMBER SHARES OF THE TOBACCO AND FOOD GIANT ARE OFF 47 TRADING YESTERDAY AT 45 5/8 ON THE NEW YORK STOCK EXCHANGE WITH THE STOCK DOWN SHARPLY A BUYBACK MIGHT SEEM LIKE A SMART MOVE BUT PHILIP MORRIS IS QUIETLY CASTING DOUBTS ON THE IDEA IN TALKS WITH SOME WALL STREET ANALYSTS IT SAYS OUTRIGHT THAT IT WON'T ANNOUNCE ANY KIND OF STEPPEDUP BUYBACK AT TODAY'S ANNUAL SHAREHOLDER MEETING IN RICHMOND VA EVEN IF THE COMPANY RELENTS SOME ANALYSTS DOUBT A BIG BUYBACK WOULD HELP THE STOCK PRICE THAT MUCH BECAUSE PHILIP MORRIS HAS FUNDAMENTAL PROBLEMS SOME BELIEVE THE STOCK MAY GO LOWER PHILIP MORRIS OUTPERFORMED THE STOCK MARKET FOR MOST OF THE PAST DECADE BY VIRTUE OF ITS HIGH PROFIT MARGIN TOBACCO BUSINESS AND ITS AGGRESSIVE PRICE BOOSTS IN FOOD AND CIGARETTES BUT THE DAYS OF HEADY GROWTH SEEM TO BE OVER PHILIP MORRIS IS CLEARLY LESS ATTRACTIVE NOW THAN AT ANY POINT IN THE LAST 10 YEARS SAYS GARY LANGBAUM DIRECTOR OF RESEARCH FOR KEMPER FINANCIAL SERVICES IN CHICAGO MUCH OF PHILIP MORRIS'S STOCKMARKET DECLINE WAS SELFINFLICTED THE STOCK TANKED BY MORE THAN 14 POINTS OR 23 ON APRIL 2 WHEN THE COMPANY ANNOUNCED THAT IT WOULD CUT PRICES ON MARLBORO CIGARETTES THE PRICE CUT WHICH IS EXPECTED TO CARVE 2 BILLION OUT OF THE COMPANY'S PROFIT THIS YEAR WAS PROMPTED BY MARLBORO'S LOSS OF MARKET SHARE TO DISCOUNT CIGARETTES ANALYSTS SAY IT NOW MAKES SENSE FOR PHILIP MORRIS TO BORROW A PILE OF MONEY TO BUY BACK SHARES THE COMPANY'S COST OF SHORTTERM FUNDS AFTER TAXES IS ONLY ABOUT 4 LESS THAN THE 55 YIELD IT NOW HAS TO PAY ON ITS DIVIDEND PHILIP MORRIS COULD BORROW 2 BILLION AT AN ANNUAL INTEREST COST OF PERHAPS 80 MILLION AND USE IT TO RETIRE 40 MILLION SHARES WIPING OUT 100 MILLION IN YEARLY DIVIDEND PAYMENTS EVEN BEFORE THE STOCK PLUNGED ON APRIL 2 THE COMPANY HAD BEEN FURIOUSLY SCOOPING UP ITS OWN SHARES IN THE FIRST QUARTER ALONE THE COMPANY SPENT 12 BILLION TO BUY BACK 173 MILLION SHARES AT AN AVERAGE PRICE OF 69 A PIECE THAT DOESN'T LOOK SO SMART NOW BUT THE NEXT ROUND COULD BE MORE OF A BARGAIN PHILIP MORRIS WHICH HAD 883 MILLION SHARES OUTSTANDING AS OF MARCH 31 HAS 12 BILLION LEFT TO SPEND FROM AN EARLIER BUYBACK PROGRAM BUT INVESTORS SAY THE COMPANY WOULD HAVE TO SPEND AT LEAST 2 BILLION OVER A 12MONTH PERIOD TO HAVE A TANGIBLE IMPACT AT THE CURRENT STOCK PRICE 2 BILLION WOULD BUY 41 MILLION SHARES EQUAL TO 46 OF ITS STOCK A BUYBACK OF THAT MAGNITUDE COMBINED WITH PHILIP MORRIS'S 55 DIVIDEND YIELD COULD RESULT IN A RETURN TO SHAREHOLDERS IN THE NEXT YEAR OF ABOUT 10 THAT'S A PRETTY NICE RETURN SAYS LARRY WEISSMAN A PORTFOLIO MANAGER FOR COLLEGE RETIREMENT EQUITIES FUND A LARGE HOLDER OF PHILIP MORRIS SHARES MR WEISSMAN SAYS HE HAS LET PHILIP MORRIS KNOW THAT HE VIEWS A MAJOR SHARE BUYBACK PROGRAM AS THE BEST USE OF THE COMPANY'S MASSIVE CASH FLOW MR WIESSMAN'S HOPES ARE CLEARLY SHARED BY OTHERS ON WALL STREET INVESTORS HAVE BEGUN LOADING UP ON PHILIP MORRIS CALL OPTIONS IN A GAMBLE THAT A BIG BUYBACK OR THAT SOME OTHER UPBEAT DEVELOPMENT WILL HELP THE STOCK SPECULATIVE OPTIMISM IN PHILIP MORRIS IS FAIRLY HIGH SUGGESTING THAT TRADERS ARE LOOKING FOR A SHARP RECOVERY IN THE STOCK SAYS STEVE SHOBIN A TECHNICAL ANALYST AT MERRILL LYNCH & CO BUT RONALD MORROW AN ANALYST WITH SMITH BARNEY BELIEVES A BUYBACK IS UNLIKELY AT A TIME WHEN PHILIP MORRIS UNTIL NOW ONE OF THE MOST PROFITABLE MARKETERS IN THE WORLD IS FACED WITH THE LIKELIHOOD OF LOWER EARNINGS OVER THE NEXT FOUR QUARTERS COMPARED WITH YEAREARLIER RESULTS MANY ANALYSTS BELIEVE THE STRATEGY TO CUT MARLBORO PRICES IS FLAWED THUS OBVIATING THE BENEFITS OF ANY POSSIBLE BUYBACK A PRICE REDUCTION MAY ONLY CHEAPEN THE VALUE OF THE BRAND AND PERMANENTLY LOWER PROFIT MARGINS THEY SAY AND A JUMP IN THE FEDERAL CIGARETTE TAX ALSO LOOMS WE FEEL THERE'S ONE MORE SHOE TO DROP SAYS LAWRENCE ADELMAN OF DEAN WITTER WHO RECOMMENDS THAT INVESTORS SELL THE STOCK THE STOCK PRICE MIGHT GO UP A COUPLE OF POINTS ON A BUYBACK ADDS GARY D BLACK AN ANALYST WITH SANFORD C BERNSTEIN & CO BUT IT DOESN'T CHANGE MY FUNDAMENTAL OUTLOOK 9304290037 930429 WHAT'S NEWS BUSINESS AND FINANCE EASTMAN KODAK'S CHIEF FINANCIAL OFFICER CHRISTOPHER STEFFEN QUIT AFTER A CLASH WITH CHAIRMAN KAY WHITMORE OVER HOW QUICKLY TO SELL ASSETS AND CUT COSTS AT THE PHOTO GIANT STEFFEN WHO WAS ON THE JOB FOR LESS THAN THREE MONTHS WANTED TO GO FASTER THAN WHITMORE DID KODAK STOCK SANK 5125 OR 98 TO 4725 ON THE NEWS CLINTON'S HEALTH AIDES ARE CONSIDERING BARRING MALPRACTICE SUITS AGAINST DOCTORS AND HOSPITALS HEALTH PLANS SUCH AS INSURERS AND HMOS WOULD BE SOLELY LIABLE FOR DAMAGES THE AIM WOULD BE TO REDUCE LITIGATION COSTS AND THE PRACTICE OF DEFENSIVE MEDICINE NATIONAL MEDICAL ENTERPRISES' COFOUNDERS ARE QUITTING THEIR MAJOR OPERATING POSTS IN THE WAKE OF GOVERNMENT INQUIRIES INTO THE HEALTHCARE SERVICES COMPANY'S PRACTICES FORD EARNED 572 MILLION IN THE FIRST QUARTER MUCH MORE THAN EXPECTED AND MORE THAN TWICE ITS YEAREARLIER PROFIT BEFORE A ONETIME CHARGE BUT FORD SAID WEAK EUROPEAN SALES AND HIGHER US COSTS WILL KEEP PRESSURE ON PROFITS FORD'S STOCK JUMPED 1875 TO 5450 GM AND CHRYSLER ALSO RALLIED DETROIT'S TOP AUTO EXECUTIVES MET WITH SENIOR GOVERNMENT OFFICIALS PRESENTING COMPLAINTS ABOUT REGULATORY TRADE AND HEALTH ISSUES THE CLINTON OFFICIALS WERE SYMPATHETIC BUT MADE NO PROMISES PARTICIPANTS SAID THE US PLANS TO PRESS GERMANY AND JAPAN AT A MEETING OF FINANCE AND MONETARY OFFICIALS TODAY TO DO MORE TO BOOST THE SLUMPING WORLD ECONOMY FOR ITS PART THE CLINTON ADMINISTRATION IS PREPARING A SCALEDBACK VERSION OF ITS ECONOMICSTIMULUS PACKAGE THE DOLLAR CLIMBED AGAINST THE YEN WHILE BOND PRICES DECLINED SLIGHTLY AND STOCKS FINISHED MIXED GOLD FUTURES ADVANCED IN HEAVY TRADING IN LONDON SHARE PRICES CLOSED DOWN 12 NBC RENEWED ITS CONTRACT TO TELEVISE PROFESSIONAL BASKETBALL AGREEING TO PAY THE NBA 750 MILLION OVER FOUR YEARS MARKING A 25 PRICE INCREASE THE GE UNIT ALSO IS TO GIVE THE LEAGUE A SHARE OF ANY AD REVENUE OVER A CERTAIN LEVEL IN THE CONTRACT'S LAST YEAR PAINEWEBBER'S ASSET MANAGEMENT UNIT LOST AT LEAST SEVEN EXECUTIVES AND PORTFOLIO MANAGERS PLUS A NUMBER OF SUPPORT PERSONNEL MOSTLY IN RECENT DAYS PEOPLE CLOSE TO THE FIRM SAID THE SEC INTENDS TO LOOK AT WHETHER WALL STREET FIRMS THAT DEAL IN EXOTIC DERIVATIVE ISSUES SHOULD BE REQUIRED TO RAISE ADDITIONAL CAPITAL TO COVER THE INCREASED RISKS FROM SUCH PRODUCTS IBM VICE CHAIRMAN JACK KUEHLER SAID HE WILL RETIRE AUG 31 RESULTING IN SOME CHANGES THAT WILL INCREASE THE POWER OF VICE CHAIRMAN PAUL RIZZO GM'S NONAUTO UNITS POSTED A 43 DROP IN COMBINED FIRSTPERIOD PROFITS EXCLUDING ACCOUNTING CHARGES SUMITOMO BANK NAMED A NEW PRESIDENT IN AN EFFORT BY THE JAPANESE BANK TO PUT A FINANCIAL SCANDAL BEHIND IT CATERPILLAR SUSPENDED INDEFINITELY 109 WORKERS AT AN ILLINOIS PLANT IN AN ESCALATION OF THE CONSTRUCTION EQUIPMENT MAKER'S FIGHT WITH THE UAW THE WORKERS HAD WORN TSHIRTS CALLING FOR THE OUSTER OF CATERPILLAR'S CHAIRMAN AMDAHL REPORTED A 2397 MILLION FIRSTQUARTER LOSS REFLECTING DEPRESSED SALES OF MAINFRAME COMPUTERS AND A 243 MILLION RESTRUCTURING CHARGE BONDS LEHMAN BROTHERS TREASURY INDEX 505633 UP 158 COMMODITIES OIL 2019 A BARREL UP ONE CENT DOW JONES FUTURES INDEX 12413 OFF 111 SPOT INDEX 12169 OFF 058 DOLLAR 11215 YEN UP 048 15810 MARKS OFF 00020 9304290036 930429 DELAYED IMPACT IS US RECALL REQUEST ON GM TRUCKS DRIVEN BY SAFETY OR POLITICS CRITICS SAY NEW ALARM BASED ON OLD FIGURES REFLECTS CHANGES IN WASHINGTON MEETING A MOVING STANDARD BY DOUGLAS LAVIN AND BRUCE INGERSOLL STAFF REPORTERS OF THE WALL STREET JOURNAL FOR MORE THAN A YEAR RECORD RED INK AND A BOARDROOM REVOLT HAVE PUT GENERAL MOTORS CORP UNDER INCREASING SCRUTINY NOW THE COMPANY MUST DEAL WITH ITS LATEST CRISIS THE FEDERAL GOVERNMENT'S REQUEST THAT IT RECALL 47 MILLION PICKUP TRUCKS EQUIPPED WITH SIDESADDLE GASOLINE TANKS GM'S OFFICIAL RESPONSE TO THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION IS DUE TOMORROW BUT AS GM PREPARES A LEGAL BATTLE OVER THE TRUCKS MANY EXPERTS BELIEVE THAT A HARSH LIGHT OUGHT TO BE SHONE ON THE GOVERNMENT AS WELL FOR MORE THAN TWO DECADES THEY SAY THE TRAFFICSAFETY AGENCY'S EVALUATION OF THE GM TRUCKS HAS SMACKED OF CONSISTENT BUREAUCRATIC BUMBLING AND NOW BY SEEKING WHAT COULD BECOME A MULTIBILLIONDOLLAR RECALL REGULATORS ARE RESPONDING TO PRESSURE FROM AN ADVOCACY GROUP BY TRYING TO MAKE UP FOR WHAT SOME VIEW AS EARLIER INEPTITUDE CONSIDER FOR ALMOST TWO YEARS THE AGENCY INVESTIGATED WHETHER 16 MILLION OF THE GM PICKUPS BUILT BETWEEN 1984 AND 1986 WERE LEAKING FUEL THROUGH RUSTING GAS TANKS INVESTIGATORS FOUND FEW OWNER COMPLAINTS NO REPORTS OF LEAKS CAUSING FIRES AND NO EVIDENCE OF AN UNREASONABLE RISK OF FIRES IN SIDEIMPACT COLLISIONS IN FEBRUARY 1992 THEY PRONOUNCED THE TRUCKS SAFE NEARLY TWO DECADES EARLIER WHEN THE SIDESADDLE PICKUPS WERE BEING INTRODUCED THE AGENCY HAD THE PERFECT OPPORTUNITY TO CORRECT ANY DESIGN FLAW IN 1973 REGULATORS WERE DRAFTING A NEW STANDARD GOVERNING FUELTANK INTEGRITY IN CRASHES BUT THEY SET THE SIDEIMPACT STANDARD AT JUST 20 MILES PER HOUR WHICH THE GM TRUCKS EASILY MET ONLY IN 1990 DID THE AGENCY CONCEDE THAT ITS OWN STANDARD WAS INADEQUATE AND NOT FOR ANOTHER TWO YEARS DID THE AGENCY BEGIN THE PROCESS OF MAKING THE RULE MORE STRINGENT THE NHTSA IS SEEKING A RECALL ONLY AFTER BEING PUSHED BY TRIAL LAWYERS AND BY THE WASHINGTONBASED CENTER FOR AUTO SAFETY A GROUP FOUNDED BY GM FOE RALPH NADER THE TRUCKS WERE ALSO PILLORIED BY THE MEDIA AND UNFAIRLY IT TURNED OUT BY NBC NEWS LAST FALL THE REGULATORS ARE BASING THEIR RECALL REQUEST ON THE SAME HISTORICAL ACCIDENT DATA THAT THEY HAVE HAD AND DISREGARDED FOR YEARS HOW IS IT THAT NHTSA DIDN'T TRIP OVER THIS PROBLEM EARLIER ASKS JERRY MASHAW A YALE UNIVERSITY PROFESSOR OF LAW AND MANAGEMENT AND AN AUTOSAFETY EXPERT ADDS LYNN BRADFORD A RETIRED ASSOCIATE ADMINISTRATOR FOR ENFORCEMENT AT THE NHTSA YOU'D THINK IF THERE WAS AN INKLING OF A PROBLEM YOU WOULD HAVE RUN THE NUMBERS RATHER THAN BE CAUGHT WITH YOUR PANTS DOWN OUTWARDLY YOU GET THE FEELING THEY WERE PRESSURED INTO DOING SOMETHING BECAUSE THEY WERE LATE LOOKING AT THE DATA GM IS HOLDING PRESS BRIEFINGS TODAY TO BE CONDUCTED BY ITS EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL HARRY PEARCE WHO WAS INSTRUMENTAL IN UNCOVERING NBC'S RIGGING OF ITS CRASH TESTS MR PEARCE IS EXPECTED TO RAISE SERIOUS NEW QUESTIONS IN GM'S VIEW ABOUT NHTSA'S HANDLING OF THE PICKUPTRUCK INVESTIGATION AGENCY OFFICIALS BRISTLE AT THE SUGGESTION THAT THEY HAVE BEEN LAX YOU CAN ALWAYS LOOK IN HINDSIGHT 2020 AND SAY GEE YOU SHOULD HAVE PICKED THAT UP' SAYS WILLIAM A BOEHLY WHO IS HEADING UP NHTSA'S INVESTIGATION INTO THE PICKUPS BUT HE SAYS THE SAFETY ADMINISTRATION GENERALLY LAUNCHES INQUIRIES ONLY AFTER IT RECEIVES COMPLAINTS FROM CONSUMERS MR BOEHLY SAYS THERE HAVE BEEN VERY FEW COMPLAINTS THAT FACT RAISES THE QUESTION ARE THE TRUCKS THEN SAFE THE ANSWER IS YES OVERALL AS MR BOEHLY ACKNOWLEDGES THEIR FATALACCIDENT RECORD IS SUBSTANTIALLY BETTER THAN MOST CARS' AND ONLY SLIGHTLY WORSE THAN THAT OF FORD AND DODGE TRUCKS ACCORDING TO BOTH NHTSA AND GM WHAT IS MORE GM'S INTERNAL TESTS FOR SIDEIMPACT SAFETY HAVE LONG BEEN MORE STRINGENT THAN THE GOVERNMENT'S IN THE EARLY 1970S THE COMPANY WAS TESTING ITS VEHICLES IN SIDEIMPACT CRASHES AT 30 MILES AN HOUR WHICH WAS ABOVE THE FEDERAL STANDARD BY 1984 GM HAD INCREASED ITS INTERNAL STANDARD TO 50 MPH THAT PROMPTED THE COMPANY TO IMPROVE THE DESIGN OF THE GAS TANKS PROTECTING THEM WITH A PLASTIC SHIELD HOWEVER EVER SINCE THE SIDESADDLE TRUCKS WERE INTRODUCED IN 1973 THEIR GAS TANKS HAVE SOMETIMES RIPPED OPEN AND EXPLODED IN SIDEIMPACT COLLISIONS THE GM TRUCKS ARE 24 TIMES AS LIKELY AS PICKUPS MADE BY FORD MOTOR CO TO BE INVOLVED IN DEADLY SIDE CRASHES WITH FIRES NHTSA SAYS THAT TRANSLATES INTO ABOUT FIVE DEATHS A YEAR OUT OF MORE THAN 40000 ON THE NATION'S HIGHWAYS SUCH CRASHES THEN ARE QUITE RARE IN THE US FOR EVERY 10000 VEHICLE CRASHES THERE ARE ONLY 30 FIRES ONLY THREE OR FOUR OF THEM INVOLVE SIDEIMPACT COLLISIONS AT MOST ONE OF THOSE ACCIDENTS WOULD INVOLVE A PICKUP TRUCK OF ANY MAKE SO THEN WHAT IS THE PROPER STATISTICAL STANDARD FOR DETERMINING WHETHER A VEHICLE IS UNSAFE AND IN NEED OF RECALL THAT IS A JUDGMENT CALL AND WASHINGTON'S JUDGMENT CLEARLY HAS CHANGED THE CLINTON ADMINISTRATION HAS A MORE ACTIVIST REGULATORY BENT THAN ITS REPUBLICAN PREDECESSORS FEDERICO PENA THE SECRETARY OF TRANSPORTATION COULD HAVE OVERRULED THE NHTSA STAFF'S RECOMMENDATION THAT THE GM TRUCKS BE RECALLED BUT HE DIDN'T DURING THE 12 YEARS OF REPUBLICAN DEREGULATORY POLICIES THE DECISION ALMOST CERTAINLY WOULD HAVE BEEN DIFFERENT HAD THE STAFF RECOMMENDED A GMPICKUP RECALL DURING THE BUSH ERA THENADMINISTRATOR JERRY CURRY SAYS HE WOULD HAVE BOOTED THEM OUT OF HIS OFFICE I WOULD HAVE SHUT THIS DEFECT INVESTIGATION DOWN AND GONE ON TO MORE IMPORTANT THINGS ASSERTS MR CURRY WHO LEFT THE BUSH ADMINISTRATION IN JUNE 1992 TO BECOME AN AUTOINDUSTRY CONSULTANT BUT WITH THE CHANGE IN ADMINISTRATIONS CAME VOWS FROM PRESIDENT CLINTON'S TRANSPORTATION SECRETARY TO MAKE HIGHWAY SAFETY A TOP PRIORITY AND A READINESS TO TAKE RECALL ACTIONS NHTSA ITSELF SAYS IT IS PLOWING NEW REGULATORY GROUND WITH THIS CASE NEVER BEFORE HAS THE AGENCY ASKED FOR A RECALL OF A VEHICLE THAT MET A PRECISELY APPLICABLE GOVERNMENT SAFETY STANDARD AT THE TIME IT WAS BUILT TO GENERAL MOTORS WHICH IN 1988 CHANGED THE DESIGN OF ITS PICKUP TRUCKS TO PUT THE GAS TANK INSIDE THE STEEL UNDERFRAME THIS AMOUNTS TO CHANGING THE RULES AFTER THE GAME IS OVER IF THE COMPANY REJECTS THE GOVERNMENT'S RECALL REQUEST AS EXPECTED THE NHTSA COULD HOLD HEARINGS ON THE MATTER BEFORE ORDERING A RECALL GM THEN COULD APPEAL THE AGENCY'S DECISION IN COURT THE COMPANY ALREADY IS DEFENDING THE TRUCKS' DESIGN IN OTHER COURT PROCEEDINGS IN FEBRUARY AN ATLANTA JURY CONCLUDED GM HAD BEEN NEGLIGENT AND AWARDED THE FAMILY OF SHANNON MOSELEY 1052 MILLION AFTER THE YOUNG MAN DIED IN A FIERY CRASH OF HIS PICKUP THE BULK OF THE AWARD WHICH GM IS APPEALING WAS IN PUNITIVE DAMAGES IN THAT CASE JURORS HEARD EVIDENCE FROM GM'S FORMER EXPERT WITNESS ON PICKUPS RONALD E ELWELL WHO SAID THAT GM WITHHELD TESTS FROM HIM THAT SHOWED THE GAS TANKS SPLIT LIKE MELONS THE JURORS ALSO SAW INTERNAL GM DOCUMENTS THAT SHOWED DISSENT WITHIN THE COMPANY OVER THE SAFETY OF THE DESIGN DATING BACK TO AT LEAST 1983 BESIDES THE MOSELEY SUIT GM HAS SETTLED DOZENS OF CASES OUT OF COURT IN ADDITION GM FACES MORE THAN 20 CLASSACTION SUITS DEMANDING THAT IT PAY ALL TRUCK OWNERS FOR RESALE VALUE LOST THAT COULD COST THE AUTO MAKER MORE THAN 2 BILLION IN THE MIDST OF THIS IT IS CLEAR THAT FEDERAL REGULATORS HAD OPPORTUNITY TO ACT ON GM'S DESIGN MUCH EARLIER AND WITH RELATIVELY LITTLE COST SHORTLY AFTER THE 1973 GM PICKUPS WERE FIRST MARKETED QUESTIONS WERE BEING RAISED ABOUT THE SAFETY OF SIDESADDLE GAS TANKS FORD PRINTED DIAGRAMS OF THE POSITIONING OF FORD AND CHEVROLET GAS TANKS IN A 1973 SALES BROCHURE AND POINTED OUT THAT FORD HAS MOUNTED THE TANK BETWEEN THE STEEL FRAME SIDERAILS FOR PROTECTION CHRYSLER CORP'S PICKUPS ARE SIMILAR TO FORD'S LEAVING GM ALONE AMONG THE BIG THREE WITH TANKS NEAR THE EXTERIOR OF THE VEHICLE ALSO AT THIS TIME NHTSA WAS DEVELOPING A NEW RULE FEDERAL MOTOR VEHICLE SAFETY STANDARD 301 WHICH LIMITS THE AMOUNT OF FUEL THAT CAN LEAK FROM VEHICLES IN TEST CRASHES TO AN OUNCE A MINUTE THE GOVERNMENT'S TEST CRASHES FOR SIDEIMPACT COLLISIONS WERE CONDUCTED AT 20 MILES AN HOUR A STANDARD THAT STILL STANDS THE STANDARD IS LUDICROUSLY LOW SAYS LL MICK MCBEE JR A PLAINTIFF'S ATTORNEY IN DALLAS WHO HAS WON MILLIONS OF DOLLARS FROM GM IN THREE PICKUPCASE SETTLEMENTS MR MCBEE HAS A POINT OF VIEW OF COURSE BUT IN NOVEMBER 1990 THE NHTSA PUBLISHED A STATISTICAL EXAMINATION OF RULE 301'S EFFECTIVENESS OVER THE YEARS IT FOUND THE STANDARD HAD HELPED TO REDUCE CAR FIRES BY 14 BUT DIDN'T CUT FIRERELATED DEATHS THE RULE HAD NO EFFECT AT ALL ON PICKUPS NO SIGNIFICANT REDUCTION IN CRASH FIRES WAS FOUND FOR POSTSTANDARD LIGHT TRUCKS THE REPORT SAYS THE SAFETY AGENCY DIDN'T FOLLOW UP ON THAT REPORT FOR TWO YEARS THEN LAST DECEMBER NHTSA OPENED ITS STANDARD FOR REVIEW IT QUESTIONED WHETHER ANY OF THE CRASH TESTS SIMULATE WHAT HAPPENS IN THE REAL WORLD IN THE TESTS A DUMMY VEHICLE IS THRUST INTO THE SIDE OF THE PICKUP TRUCK AT A PRECISE 90DEGREE ANGLE THE BROAD IMPACT OF THE TEST CRASH MAY BLUNT THE PENETRATION OF THE SIDE OF THE PICKUP THE AGENCY SAID AND THUS FAIL TO REPLICATE THE SPEARING THAT SOMETIMES HAPPENS ON THE ROAD THE VALIDITY OF THE FEDERAL SIDEIMPACT STANDARD IS CRUCIAL BECAUSE IT IS AT THE HEART OF GM'S DEFENSE THE COMPANY SAYS ITS TRUCKS SHOULDN'T BE RECALLED BECAUSE THEY ARE SAFE AND BECAUSE THEY MEET FEDERAL RULE 301 MEANWHILE EVEN THOUGH NHTSA TESTED 1979 1981 AND 1984 MODEL PICKUPS NONE OF THE TESTS THE AGENCY CONDUCTED INVOLVED SIDE HITS ALL THE VEHICLES WERE DOING VERY WELL IN COMPLIANCE WITH THAT STANDARD SAYS NHTSA'S MR BOEHLY IT WAS A MATTER OF ENFORCEMENT RESOURCES OTHER THINGS WERE MORE IMPORTANT TO TEST AS IT TURNS OUT THE AGENCY DIDN'T CONDUCT ANY SIDEIMPACT CRASH TESTS UNTIL EARLIER THIS YEAR IN ONE SERIES OF TESTS AT EAST LIBERTY OHIO INVESTIGATORS FOUND A 1987 CHEVY PICKUP LEAKED 10 TIMES MORE FUEL THAN EITHER A 1987 DODGE OR 1987 FORD PICKUP WHEN BROADSIDED BY THE SAME KIND OF CAR AT 60 MPH IN ANOTHER SERIES AT 50 MPH THEY FOUND THAT THREE 1986 GM PICKUPS HAD SPRUNG LEAKS OF MORE THAN 10 GALLONS WITHIN THE FIRST MINUTE FAR IN EXCESS OF THE RULE 301 LIMIT OF ONE OUNCE A MINUTE WHAT CONCERNED MR BOEHLY IS THAT TEST RESULTS ON DUMMIES IN THE GM PICKUPS INDICATE THAT THE DRIVERS WOULD HAVE SURVIVED THE 50MPH CRASH BUT IF TRAPPED IN THE WRECKAGE THEY COULD HAVE BEEN BURNED TO DEATH ALSO AMONG THE SIGNALS MISSED BY NHTSA IN THE 1980S TWO MULTIMILLIONDOLLAR VERDICTS AWARDED ACCIDENT VICTIMS OR THEIR SURVIVORS IN GM PICKUP CASES BUT PERHAPS THE MOST GLARING EXAMPLE OF AN OMISSION CAME IN 1990 WHEN THE AGENCY LAUNCHED A TWOYEAR INVESTIGATION INTO WHETHER THE GAS TANKS ON SOME OF THE LATER MODEL PICKUPS WERE RUSTING SAFETY INVESTIGATORS EXAMINED WHETHER THE TANKS ON 16 MILLION 198486 MODEL PICKUPS WERE CORRODING AND LEAKING FUELWITHOUT STUMBLING UPON THE RISK OF SIDEIMPACT FIRES THE CONCERN WAS THAT THE PLASTIC SHIELD GM INSTALLED IN 1984 WAS TRAPPING DIRT AND MOISTURE AGAINST THE TANK AND CAUSING CORROSION THE AGENCY FOCUSED ON WEAR NOT ACCIDENTS BUT IT DID EXAMINE SOME STATE ACCIDENT DATA THAT SHOWED THE TRUCKS WEREN'T MORE PRONE TO FIRES THAN THEIR COMPETITORS THE AGENCY CLOSED THE INVESTIGATION AFTER FINDING VERY FEW OWNER COMPLAINTS AND NO REPORTS OF TANK LEAKS CAUSING FIRES WE DIDN'T SEE ANYTHING TO SUGGEST A RECALL WAS WARRANTED SAYS MR BOEHLY THESE WERE OLD VEHICLES WITH LOTS OF MILES ON THEM THEN THIS YEAR IN A MORE COMPREHENSIVE REVIEW OF FEDERAL FATALACCIDENT REPORTS NHTSA FOUND THE OPPOSITE THE DIFFERENT FINDING STEMMED FROM A SEPARATE SET OF DATA FEDERAL INSTEAD OF STATE THE AGENCY ALSO HAS RECENTLY REOPENED ITS CORROSION INQUIRY AS PART OF A BROADER FIRERISK INVESTIGATION NHTSA OFFICIALS DEFENDING THEIR HANDLING OF THE GM CASE SAY THEY PRIMARILY RESPOND TO COMPLAINTS FROM THE PUBLIC THE AGENCY DOESN'T HAVE THE RESOURCES REGULATORS SAY TO REGULARLY ANALYZE FEDERAL FATALACCIDENT DATA TO SEARCH FOR NUMERICAL SPIKES THAT MIGHT BE LINKED TO A DEFECT CLARENCE DITLOW OF THE CENTER FOR AUTO SAFETY CONTENDS THAT THE INVESTIGATORS SUFFER FROM A PERIODIC INABILITY TO SEE THE FOREST FOR THE TREES IT WAS ONLY AFTER MR DITLOW'S GROUP PETITIONED THE NHTSA FOR A RECALL LAST SUMMER THAT THE AGENCY SERIOUSLY REVIEWED THE FEDERAL ACCIDENT DATA THAT IT COLLECTS ON APRIL 9 WHEN NHTSA REQUESTED THAT GM RECALL THE TRUCKS IT GAVE AS A REASON THE INFORMATION FEDERAL REGULATORS HAVE HAD ACCESS TO FOR YEARS SOMETHING ELSE HAPPENED ON APRIL 9 GABOR EGYED WAS DRIVING HIS WIFE MARGIE SOUTH THROUGH OHIO ON INTERSTATE 77 IN THEIR 1984 CHEVY PICKUP THE COUPLE WERE HEADING HOME TO VIRGINIA FROM A VISIT TO THEIR SON IN MICHIGAN MRS EGYED SAYS A YOUNG WOMAN HEADING NORTH IN ANOTHER VEHICLE FELL ASLEEP AT THE WHEEL CROSSED THE MEDIAN AND TORE INTO THE LEFT SIDE OF THEIR PICKUP WE BOTH HAD OUR SEAT BELTS ON MRS EGYED RECALLS MYSELF I WAS ABLE TO UNFASTEN MINE BUT I COULD NOT UNFASTEN MY HUSBAND'S AND THE FIRE BY THAT TIME WAS COMING UP UNDER THE DOOR THE RESULT MR EGYED SUFFERED A BROKEN ANKLE AND SEVERE BURNS THEY HAVE DONE GRAFTING AND SKIN TRANSPLANTS AND THAT IS COMING ALONG FINE HIS WIFE SAYS AND HOW DOES SHE THINK HER HUSBAND WOULD BE DOING IF THEY HAD BEEN DRIVING ANOTHER VEHICLE MRS EGYED RESPONDS WITH THE AMBIGUITY THAT HAS MARKED THE GM PICKUP CASE FROM THE START I REALLY DON'T KNOW 9304290035 930429 MARKETING & MEDIA ADVERTISING CONTINENTAL ADS FLY IN NEW SKY VICTORY OVER CHAPTER 11 WOES BY KEVIN GOLDMAN IN A NEW PRINT AD THAT BREAKS NATIONWIDE TODAY CONTINENTAL AIRLINES EMPLOYEES TOSS THEIR HATS INTO THE AIR UNDER THE HEADLINE THANKS TO YOU WE DID IT NOW WATCH US FLY DID WHAT FOR THE SECOND TIME IN A DECADE CONTINENTAL HAS EMERGED FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS AND IN A HIGHLY UNUSUAL STRATEGY FOR AN AD CAMPAIGN AIMED AT CONSUMERS CONTINENTAL IS MAKING THAT FISCAL TRIUMPH THE THEME OF A NEW BLITZ OF PRINT AND TV ADS THE CAMPAIGN CREATED BY WELLS RICH GREENE BDDP MAKES NO BONES ABOUT CONTINENTAL'S PAST FINANCIAL TROUBLES EMERGING FROM CHAPTER 11 AND INTO THE FUTURE THOUGH MANY AIRLINES HAVE BEEN IN EQUALLY DIRE STRAITS NONE HAS EVER BEFORE SO DIRECTLY ALLUDED THROUGH ADVERTISING TO ITS FISCAL WOES PASSENGERS AIRLINES REASON WANT TO KNOW ABOUT FARES PERKS AND SCHEDULES TALK ABOUT BANKRUPTCY PROCEEDINGS MIGHT LEAD TO SPECULATION THAT SAFETY AND AIRLINE MAINTENANCE MIGHT BE COMPROMISED OR FLIGHTS CANCELED JOHN NELSON CONTINENTAL'S EXECUTIVE VICE PRESIDENT OF MARKETING ACKNOWLEDGES THAT THERE WAS A MASSIVE DEBATE WITHIN CONTINENTAL AND WELLS RICH THIS PAST SPRING OVER WHETHER TO KEEP MUM ABOUT THE CHAPTER 11 STATUS IN ADS THOUGH THE AIRLINE WAS PLANNING TO EMERGE FROM BANKRUPTCY IN APRIL IT HAD BEEN OPERATING UNDER CHAPTER 11 PROTECTION FROM CREDITORS SINCE 1990 IT HAD ALSO OPERATED UNDER CHAPTER 11 PROTECTION FROM 1983 TO 1986 THE DEBATE BECAME SO HEATED THAT THE AIRLINE COMMISSIONED AN INDEPENDENT SURVEY OF OVER 2500 PASSENGERS AND TRAVEL AGENTS TO SOUND THEM OUT ABOUT CONTINENTAL'S SITUATION THE RESPONSE WAS OVERWHELMING ABOUT 80 OF THOSE SURVEYED WERE AWARE OF THE AIRLINE'S FINANCIAL PREDICAMENT THE ADVICE WAS SIMPLY TO ACKNOWLEDGE IT AND MOVE ON WE'RE DOING JUST THAT SAYS MR NELSON THEN WE'RE GOING TO SHUT UP ABOUT THE PAST 29 MONTHS INDEED THE NEW MEA CULPA SPOTS AND PRINT ADS ARE SCHEDULED TO RUN FOR ONLY 10 TO 12 DAYS THEN THE SECOND PHASE OF THE REBUILDING CAMPAIGN WILL KICK IN PROMOTING HOW THE AIRLINE DIFFERS FROM ITS COMPETITORS FOR EXAMPLE CONTINENTAL HAS RECENTLY BEEN RUNNING PRINTS ADS TOUTING A SALE ON DOMESTIC FLIGHTS FOR TICKETS PURCHASED THROUGH FRIDAY MR NELSON SAYS CONTINENTAL IS INCREASING ITS AD BUDGET FROM LAST YEAR ALTHOUGH HE DECLINED TO BE SPECIFIC CONTINENTAL SPENT 416 MILLION IN ADVERTISING IN 1992 ACCORDING TO LEADING NATIONAL ADVERTISERS WHICH TRACKS AD SPENDING THAT WAS A HEALTHY 15 INCREASE FROM ITS 1991 AD BUDGET OF 361 MILLION FOR THE CURRENT CAMPAIGN MR NELSON ADMITS HE OPPOSED THE USE OF THE TERM CHAPTER 11' INITIALLY IT HAS A NEGATIVE SOUND HE SAYS I WANTED TO BE QUIET ABOUT IT INDEED THE ACCOUNT'S EXECUTIVE AT WELLS RICH WAS ALSO SKEPTICAL ABOUT THE CONFESSIONAL TACTIC I HAD STRONG DOUBTS BECAUSE IT IS UNCONVENTIONAL SAYS DAVID SKLAVER GROUP VICE PRESIDENT AND DIRECTOR OF ACCOUNT SERVICES AT WELLS RICH AIRLINES TRADITIONALLY STAY AWAY FROM BAD NEWS WHEN A PASSENGER AIRLINE CRASHES FOR EXAMPLE THE INDUSTRY PULLS ALL OF ITS ADVERTISING SO THAT COMMERCIALS WON'T AWKWARDLY POP UP ON NEWS BROADCASTS ADJACENT TO REPORTS ON THE DISASTER IN CONTINENTAL'S CASE STEPHEN A GREYSER PROFESSOR OF CONSUMER MARKETING AT THE HARVARD BUSINESS SCHOOL CALLS THE AD BOLD BECAUSE IT IS A REMINDER OF BAD NEWS ALTHOUGH IT IS SUPPOSED TO BE IN THE PAST MESSRS NELSON AND SKLAVER WERE WON OVER BY THE CONSUMER SURVEYS HOWEVER THE AIRLINE'S TARGETED CUSTOMER THE BUSINESS TRAVELER WAS ALL TOO AWARE OF CONTINENTAL'S FINANCIAL PROBLEMS BECAUSE OF HEAVY MEDIA COVERAGE EARLIER THIS WEEK CONTINENTAL AIRLINES HOLDINGS INC REPORTED A FIRSTQUARTER LOSS OF 1095 MILLION IN A PROPOSED TRANSACTION IT PLANS TO SELL A 55 STAKE TO AIR CANADA AND AIR PARTNERS LP A FORT WORTH TEXAS INVESTOR GROUP FOR 450 MILLION BY MENTIONING CHAPTER 11 CONTINENTAL IS MERELY EMBRACING A TREND COMPANIES ARE TAKING BIGGER RISKS IN THEIR COMMUNICATIONS THESE DAYS SAYS KATHARINE D PAINE PRESIDENT OF THE DELAHAYE GROUP A MARKETING CONSULTING FIRM IN NEWINGTON NH CONTINENTAL IS JUST TAKING A BIGGER RISK THAN MOST CONTINENTAL'S CHAPTER 11 CAMPAIGN DOES GO ON TO THANK EMPLOYEES TRAVEL AGENTS INVESTORS AND CUSTOMERS AND IT REMINDS PASSENGERS YOU CAN SEE THE IMPROVEMENTS WE ARE MAKING EVERY DAY SUCH AS INTERNATIONAL FIRSTCLASS SEATS FOR THE PRICE OF BUSINESSCLASS TICKETS AND FIRSTCLASS TICKETS ON DOMESTIC FLIGHTS FOR THE PRICE OF FULLFARE COACH TICKETS NOW THAT CONTINENTAL HAS INTRODUCED ITS FINANCIAL SITUATION INTO THE ADS IT MUST PLAY UP THOSE CONSUMER BENEFITS SAYS HAL ROSS PRESIDENT OF MAPES & ROSS A SURVEY RESEARCH COMPANY THE BANKRUPTCY EMERGENCE IS GREAT NEWS FOR CONTINENTAL SAYS MR ROSS NOW THE PASSENGERS WANT TO KNOW WHAT IS IN IT FOR THEM WHAT ARE THE FINANCIAL BENEFITS TO THE FLIER LARRY HAMPEL AND DEAN STEFANIDES EXECUTIVE VICE PRESIDENTS AND GROUP ACCOUNT DIRECTORS AT WPP GROUP'S SCALI MCCABE SLOVES UNEXPECTEDLY RESIGNED TO JOIN A NEW NEW YORK AGENCY TO BE CALLED HOUSTON EFFLER HAMPEL & STEFANIDES THE FIRM WILL BE ASSOCIATED WITH HOUSTON EFFLER & PARTNERS BOSTON HOUSTON EFFLER IS A SIXYEAROLD AGENCY WITH BILLINGS OF 85 MILLION AND CLIENTS SUCH AS CONVERSE INC AND BASF'S CONSUMER PRODUCTS PEPSICO INC'S PEPSI COLA KICKS OFF ITS SUMMER AD CAMPAIGN ON SATURDAY DURING THE NATIONAL BASKETBALL ASSOCIATION PLAYOFFS ON NBC FEATURING A 60 MILLION CROSSPROMOTION WITH REEBOK INTERNATIONAL LTD THE SPOTS CREATED BY OMNICOM GROUP'S BBDO NEW YORK STAR NBA ROOKIE AND REEBOK PITCHMAN SHAQUILLE O'NEAL ONE NEW AD SHOWS THE 7FOOT1INCH MR O'NEAL GULPING A PEPSI AND MYSTERIOUSLY DRAINING THE PEPSI BOTTLES OF DUMBFOUNDED DRINKERS THE WORLD OVER ONLY FOUR MORE TO GO HE PROCLAIMS AS VIEWERS LEARN THEY CAN REDEEM FIVE CAPS FROM ANY BOTTLED PEPSI PRODUCT AND RECEIVE 10 OFF REEBOK FOOTWEAR AND APPAREL THE FIVE WILL GET YOU TEN PROMOTION WHICH RUNS THROUGH JULY 15 INCLUDES A SWEEPSTAKES TO WIN TRIPS TO ORLANDO FLA TO SEE SHAQ AND THE ORLANDO MAGIC PLAY BACARDI IMPORTS INC IS SPENDING MORE THAN 6 MILLION ON THE LATEST ADDITIONS TO ITS JUST ADD BACARDI CAMPAIGN STARTING EARLY THIS SUMMER THE PRINT ADS BUS POSTERS AND BILLBOARDS WILL FEATURE FIVE NEW IMAGES THAT CHANGE AS THEY'RE SPLASHED WITH BACARDI RUM THE TRANSFORMATION ADS CREATED BY INTERPUBLIC GROUP'S LINTASNEW YORK WILL INCLUDE LEMON WEDGES THAT TURN INTO SURFBOARDS TO PROMOTE BACARDI RUM AND LEMONADE IN MAGAZINES TOTAL PRINT AND OUTDOOR ADVERTISING BY BACARDI AMOUNTS TO OVER 12 MILLION POLAND SPRING A NEW CAMPAIGN CREATED BY LORD DENTSU & PARTNERS MARKS THE FIRST BIG TV PROMOTION FOR THE BOTTLER'S INDIVIDUALSIZE PRODUCTS PREVIOUS ADS TOUTED HOME AND OFFICE DELIVERY SERVICES WHAT IT MEANS TO BE FROM MAINE WILL BE THE THEME OF THE NEW SPOTS A RADIO CAMPAIGN WILL BE READY BY MIDSUMMER SAID JEFF CASO VICE PRESIDENT OF MARKETING FOR SOURCE PERRIER'S PERRIER GROUP PARENT OF POLAND SPRING 9304290034 930429 NUTRISYSTEM IS SHUTTING COMPANYOWNED SITES BLUE BELL PA AP NUTRISYSTEM INC SAID LATE YESTERDAY THAT IT WAS SHUTTING DOWN 283 COMPANYOWNED WEIGHTLOSS CENTERS AFTER A BANK SEIZED ITS CASH AND BANK ACCOUNTS DURING RESTRUCTURING TALKS NUTRISYSTEM SAID 857 FRANCHISED CENTERS AND ITS CANADIAN OPERATIONS WILL REMAIN OPEN ROUGHLY 1800 EMPLOYEES AT THE COMPANYOWNED CENTERS WERE TOLD NOT TO REPORT TO WORK TODAY NUTRISYSTEM SAID FIDELITY BANK THE AGENT FOR A SEVENBANK CONSORTIUM HAD SEIZED ALL OF THE COMPANY'S CASH AND HAD TAKEN CONTROL OF ALL OF THE COMPANY'S BANK ACCOUNTS THE BANK'S ACTION COMES AFTER NUTRISYSTEM NEGOTIATED IN GOOD FAITH FOR SEVERAL MONTHS WITH SEVERAL VIABLE INVESTORS IN AN ATTEMPT TO RESTRUCTURE THE COMPANY NUTRISYSTEM SAID IN A STATEMENT THE BANKS WERE AWARE OF THOSE NEGOTIATIONS AND NUTRISYSTEM HAD BEEN ADVISED THAT THE BANKS DID NOT OPPOSE THE COMPANY'S PLANS NUTRISYSTEM SAID THE COMPANY DECLINED TO ELABORATE THE BANKS IN THE CONSORTIUM WERE FIDELITY BANK MELLON BANK PROVIDENT BANK CREDIT DU NORDE NEW YORK CONTINENTAL BANK ILLINOIS MARYLAND NATIONAL BANK AND CANADIAN IMPERIAL BANK OF COMMERCE NEW YORK ACCORDING TO NUTRISYSTEM 9304290033 930429 FORMER BCCI OFFICIAL TESTIFIES ALTMAN CARRIED OUT ORDERS IN HIDING TAKEOVER BY PETER TRUELL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A FORMER TOP OFFICIAL OF BCCI HOLDINGS LUXEMBOURG SA SAID HE AND HIS COLLEAGUES CHOSE THE PEOPLE WHO POSED AS SHAREHOLDERS IN THE TAKEOVER OF FIRST AMERICAN BANKSHARES INC AND THAT ROBERT ALTMAN DID THE LEGAL WORK TO CARRY OUT THOSE DECISIONS ALL DECISIONS ABOUT WHO SHOULD BE SHAREHOLDERS WERE TAKEN BY US SAID DILDAR RIZVI REFERRING TO HIMSELF AND HIS FORMER COLLEAGUES AT THE BANK OF CREDIT & COMMERCE INTERNATIONAL I WOULD CONVEY THE DECISIONS TO MR ALTMAN AND MAKE SURE THEY WERE IMPLEMENTED HE SAID REFERRING TO 1978 AND 1979 WHEN BCCI AND ITS ALLIES WERE PREPARING THEIR BID FOR THE TAKEOVER OF THE LARGE WASHINGTON BANK HOLDING COMPANY WHICH WAS THEN CALLED FINANCIAL GENERAL BANKSHARES INC MR ALTMAN IS ON TRIAL IN NEW YORK STATE COURT ON CHARGES OF BRIBERY AND BANK FRAUD THE CHARGES ALLEGE THAT THE PROMINENT WASHINGTON ATTORNEY AND HIS LAW PARTNER CLARK CLIFFORD TOOK PART IN A SCHEME TO DEFRAUD BANK REGULATORS AND DEPOSITORS IN BCCI'S SECRET AND ILLEGAL TAKEOVER OF THE WASHINGTON BANK THE ALLEGED USE OF NOMINEE SHAREHOLDERS WAS AN ATTEMPT TO HIDE BCCI'S ROLE IN THE TAKEOVER MR ALTMAN AND MR CLIFFORD WHO HAS BEEN JUDGED TOO SICK TO STAND TRIAL HAVE DENIED ALL CHARGES AGAINST THEM PRIOR TO THE TAKEOVER AT AN APRIL 1981 HEARING AT THE FEDERAL RESERVE BOARD AND IN COMMUNICATIONS AFTER THAT MEETING MESSRS CLIFFORD AND ALTMAN PLEDGED THAT BCCI WOULDN'T HAVE A DIRECT ROLE IN THE TAKEOVER THEY SAID BCCI WOULD ONLY BE INVOLVED AS AN ADVISER TO THE INVESTORS WHO WERE SUPPOSEDLY BUYING THE BANK HOLDING COMPANY MR RIZVI A SENIOR OFFICER AT BCCI FROM ITS FOUNDING IN 1972 UNTIL 1990 WORKED CLOSELY WITH MR ALTMAN AS A BCCIBACKED GROUP OF ARAB INVESTORS ALLEGEDLY BOUGHT INTO FINANCIAL GENERAL THAT COMPANY WAS RENAMED FIRST AMERICAN BANKSHARES INC AFTER THE 1982 TAKEOVER IN ANSWER TO QUESTIONS FROM ASSISTANT DISTRICT ATTORNEY JOHN MOSCOW MR RIZVI SAID MR ALTMAN WAS PRESENT AT SEVERAL PRIVATE MEETINGS IN WHICH BCCI OFFICERS MADE IT CLEAR THAT THEY INTENDED TO EXERCISE OWNERSHIP AND CONTROL OVER FIRST AMERICAN AS FAR AS BCCI PRESIDENT AGHA HASAN ABEDI WAS CONCERNED THERE WAS NO DIFFERENCE BETWEEN BCCI AND FINANCIAL GENERAL ONCE THE TAKEOVER WAS COMPLETED MR RIZVI SAID DESCRIBING MEETINGS ATTENDED BY MR ALTMAN IN THE PREPARATION FOR THE TAKEOVER WAIT TILL YOU HEAR THE CASE FOR THE DEFENSE ACTRESS LYNDA CARTER MR ALTMAN'S WIFE SAID OUTSIDE THE COURTROOM YESTERDAY SO FAR NEW YORK STATE PROSECUTORS HAVE CALLED ABOUT A DOZEN OF THE 60 OR MORE WITNESSES THEY ARE EXPECTED TO SUMMON THE DEFENSE PLANS TO CALL ABOUT HALF THAT NUMBER MR RIZVI WHO RECENTLY ARRIVED FROM HIS NATIVE PAKISTAN TO TESTIFY IN THE CASE AGAINST MR ALTMAN HAS YET TO BE CROSSEXAMINED BY MR ALTMAN'S DEFENSE COUNSEL GUSTAVE NEWMAN MR RIZVI WHO HAS HIMSELF BEEN ACCUSED OF SEVERAL CRIMES IS COOPERATING WITH NEW YORK STATE PROSECUTORS IN EXCHANGE FOR THE DROPPING OF A SEPTEMBER 1991 FEDERAL INDICTMENT AGAINST HIM IN TAMPA FLA ALLEGING THAT HE TOOK PART IN A BCCI MONEYLAUNDERING SCHEME REGULATORS IN THE US AND SEVERAL OTHER COUNTRIES SEIZED BCCI AND CLOSED IT IN JULY 1991 ALLEGING WIDESPREAD FRAUD OVER MANY YEARS THE BANK'S LIQUIDATORS ESTIMATE THAT AS MUCH AS 10 BILLION OF DEPOSITORS' MONEY IS LOST OR MISSING 9304290032 930429 BUSINESS BRIEF SEQUOIA SYSTEMS INC FISCAL THIRDQUARTER LOSS DOUBLED FOLLOWING CHARGE SEQUOIA SYSTEMS INC REPORTED THAT ITS FISCAL THIRDQUARTER NET LOSS MORE THAN DOUBLED TO 3 MILLION AS A RESULT OF A PROPOSED SETTLEMENT OF A SHAREHOLDER SUIT THE COMPANY POSTED A SMALL OPERATING PROFIT DESPITE A DROP IN REVENUE SEQUOIA'S LOSS FOR THE QUARTER ENDED MARCH 28 WAS AFTER A CHARGE OF 33 MILLION STEMMING FROM A CLASSACTION SUIT AGAINST THE COMPANY LAST FALL FOR OVERSTATING REVENUE WHICH RESULTED IN THE COMPANY RESTATING RESULTS AND REPORTING LOSSES INSTEAD OF EARNINGS THE LOSS EQUAL TO 35 CENTS A SHARE AFTER THE WRITEOFF COMPARES WITH A LOSS OF 14 MILLION OR 17 CENTS A SHARE IN THE PRIOR YEAR'S QUARTER REVENUE PLUMMETED TO 96 MILLION FROM 154 MILLION ANALYSTS SAID MANY CUSTOMERS HAVE CANCELED ORDERS OR PUT PURCHASING PLANS ON HOLD SEQUOIA A MARLBOROUGH MASS MAKER OF FAULTTOLERANT COMPUTER SYSTEMS SAID THAT THE COMPANY'S OPERATIONS HAVE RETURNED TO PROFITABILITY FOLLOWING A RESTRUCTURING PROGRAM THAT HAS REDUCED ITS WORK FORCE TO ABOUT 170 EMPLOYEES FROM 400 THE COMPANY HAD AN OPERATING PROFIT OF 336000 IN THE LATEST QUARTER VS AN OPERATING LOSS OF 16 MILLION IN THE YEARAGO PERIOD FOR THE NINE MONTHS SEQUOIA HAD A LOSS OF 318 MILLION OR 373 A SHARE COMPARED WITH A LOSS OF 169000 OR TWO CENTS A SHARE REVENUE DROPPED 36 TO 305 MILLION FROM 473 MILLION IN THE YEARAGO PERIOD 9304290031 930429 BOARD OF CONTRIBUTORS HERE WE GO AGAIN BY HERBERT STEIN SO ANOTHER NEW ECONOMICS HAS COME INTO WASHINGTON WITH THE CLINTON ADMINISTRATION IN MY 55 YEARS IN WASHINGTON THIS IS THE THIRD NEW ECONOMICS OR POSSIBLY THE THIRD AND A HALF THERE ARE CERTAIN SIMILARITIES AMONG THEM IN EACH CASE THERE WAS A STRONG FEELING OF CONFIDENCE AMONG THE BEARERS OF THE NEW ECONOMICS THAT THEY KNEW WHAT THEY WERE DOING UNLIKE THEIR PREDECESSORS AND IN THE CASES THAT ARE NOW HISTORY THERE WAS A SUBSEQUENT DISCOVERY THAT THIS CONFIDENCE WAS NOT REALLY JUSTIFIED WHETHER THIS WILL ALSO BE TRUE OF THE NEW ECONOMICS OF 1993 REMAINS TO BE SEEN THE DEFEAT OF THEIR STIMULUS PACKAGE HAS SHAKEN CONFIDENCE IN THE POLITICAL JUDGMENT OF THE CLINTON TEAM BUT THEIR ECONOMICS IS STILL TO BE TESTED THE FIRST NEW ECONOMICS WITHIN MY EXPERIENCE CAME INTO WASHINGTON IN 1961 WITH PRESIDENT KENNEDY AND HIS COUNCIL OF ECONOMIC ADVISERS UNDER THE CHAIRMANSHIP OF WALTER HELLER THIS WAS THE NEW ECONOMICS OF JOHN MAYNARD KEYNES ITS MAIN FEATURE WAS BELIEF IN THE POSSIBILITY OF KEEPING THE ECONOMY CLOSE TO FULL EMPLOYMENT WITH RAPID GROWTH OF TOTAL OUTPUT BY FLEXIBLE ADJUSTMENT OF THE SIZE OF THE BUDGET DEFICIT THE ECONOMY PROSPERED THROUGH THE END OF 1965 BUT AFTER THAT CONFIDENCE BEGAN TO EVAPORATE THERE WERE MANY REASONS BUT TWO WERE MOST IMPORTANT ONE WAS THE FAILURE OF THE KEYNESIAN AMBITION FOR FULL EMPLOYMENT TO DEAL WITH THE LIKELY EMERGENCE OF INFLATION THE OTHER WAS THE POLITICAL PROBLEM PRESIDENT JOHNSON WAS VERY RELUCTANT TO FOLLOW THE KEYNESIAN PRESCRIPTION WHEN IT CALLED FOR RAISING TAXES AND CUTTING EXPENDITURES IN 1969 CAME WHAT MIGHT BE CALLED A HALFNEW ECONOMICS WITH RICHARD NIXON AS PRESIDENT AND PAUL MCCRACKEN AS CHAIRMAN OF THE CEA ON WHICH I SERVED WE SAW OURSELVES AS RESTRAINED KEYNESIANS ESCHEWING FINE TUNING WE WOULD BE MONETARIST BUT NOT DOGMATIC ABOUT IT DETERMINED TO STABILIZE THE PRICE LEVEL BALANCE THE BUDGET AND ABOVE ALL TO AVOID THE PRICE CONTROLS AS IS NOW WELL KNOWN THINGS DID NOT WORK OUT THAT WAY THE FAULT WAS THAT THE GOALS WERE PROBABLY NOT CONSISTENT IN THE SHORT RUN AND POLITICAL CONSIDERATIONS DID NOT PERMIT WAITING FOR THE LONG RUN A MORE DEFINITELY NEW ECONOMICS CAME IN 1981 ITS DISTINCTIVE FEATURE WAS SUPPLYSIDE ECONOMICS JUST WHAT WAS MEANT BY THAT PHRASE IS STILL THE SUBJECT OF SOME DISPUTE SOME HAVE INTERPRETED IT AS SAYING THAT REDUCTION OF TAX RATES WOULD INCREASE THE REVENUE AND BALANCE THE BUDGET OTHERS SAY THAT IT ONLY MEANT THAT THE REDUCTION OF TAX RATES WOULD INCREASE THE NATIONAL OUTPUT AND THE TAX BASE AND ALSO INCREASE THE PROPENSITY TO SAVE HOWEVER IT IS DEFINED THERE ARE STILL PEOPLE WHO BELIEVE THAT THE SUPPLYSIDE PRESCRIPTION WORKED OR WOULD HAVE WORKED IF FOLLOWED MORE RIGOROUSLY THERE ARE ALSO PEOPLE WHO BELIEVE THAT IF NAPOLEON HAD NOT BEEN 15 MINUTES LATE AT THE BATTLE OF WATERLOO THERE WOULD BE A BONAPARTE EMPEROR OF FRANCE TODAY IN ANY CASE AFTER 1981 THE DEFICIT GREW SAVING DECLINED AND THERE WAS NO SIGNIFICANT REVIVAL OF LONGRUN OUTPUT AND PRODUCTIVITY NOW WE COME TO THE NEW ECONOMICS OF 1993 OF COURSE IT IS NOT ENTIRELY NEW EVEN GOOD OLD PRESIDENT EISENHOWER IN 1958 BEFORE WE WERE ALL KEYNESIANS TALKED ABOUT THE POSSIBLE USE OF A LITTLE NEEDLE TO STIMULATE THE ECONOMY EVERY PRESIDENT SINCE EXCEPT RONALD REAGAN HAS PROPOSED A STIMULUS PACKAGE WHEN THE ECONOMY WAS SLACK THE ACCEPTANCE OR REJECTION OF THESE PROPOSALS LEFT NO CLEAR MARK ON ECONOMIC HISTORY THE CLINTON DEFICIT REDUCTION PLAN IS IN THE SAME VEIN AS EARLIER PLANS WHAT IS NEW ABOUT MR CLINTON'S NEW ECONOMICS IS THE DEGREE TO WHICH IT IS WILLING TO INTERVENE IN THE MARKET THIS IS SEEN IN THE TALK ABOUT MANAGED INTERNATIONAL TRADE IN PROPOSALS FOR PRICE CONTROLS IN THE HEALTH INDUSTRY AND IN NUMEROUS PLANS FOR TARGETING INVESTMENT ALL OF THESE IDEAS HAVE PRECEDENTS IN PAST PRACTICE AS WELL AS IN THE WRITINGS OF ECONOMISTS BUT THEY SEEM TO HAVE A CENTRALITY IN THE 1993 NEW ECONOMICS THAT THEY HAVE NOT HAD BEFORE EITHER IN PRACTICE OR IN AMERICAN ECONOMIC THOUGHT IN A WAY THE NEW ECONOMICS OF 1993 APPROPRIATES OR AS SOME WOULD SAY MISAPPROPRIATES THE ARGUMENTS OF ITS PREDECESSOR THE PREVIOUS ARGUMENT WAS THAT ACCELERATING GROWTH IS THE PRIME ECONOMIC OBJECTIVE SINCE THAT REQUIRES MORE INVESTMENT POLICY SHOULD BE NICE TO PRIVATE SAVERS AND INVESTORS ABOVE ALL BY NOT TAXING THEM TOO MUCH THE NEW ECONOMICS OF 1993 GOES ALONG WITH THE PRIMACY OF GROWTH AND THE NEED FOR INVESTMENT BUT IT DOES NOT ACCEPT THE DESIRABILITY OF LEAVING THE INVESTMENT TO THE PRIVATE SAVERS AND LEAVING THEM TO REAP THE MAIN RETURNS FROM THE INVESTMENT INSTEAD IT WOULD TAX PRIVATE INCOME RECIPIENTS MORE AND HAVE THE GOVERNMENT DO MORE OF THE INVESTING AND IT REJECTS THE CLAIM THAT PRIVATE INVESTMENT GUIDED BY THE MARKET WILL BE BETTER MORE PRODUCTIVE INVESTMENT INSTEAD IT MAINTAINS THAT THE GOVERNMENT CAN DO A LARGER SHARE OF THE INVESTMENT BETTER TODAY'S NEW ECONOMICS RUNS COUNTER TO THE CONVENTIONAL WISDOM OF ECONOMISTS THIS IS NOT NECESSARILY A BAD THING AFTER ALL THE TERM CONVENTIONAL WISDOM WAS ORIGINALLY USED IRONICALLY TO SUGGEST THAT IT WAS MORE CONVENTIONAL THAN WISE STILL TODAY'S UNCONVENTIONAL WISDOM DESERVES A SKEPTICAL EXAMINATION THE NEW ECONOMICS IN 1961 1969 AND 1981 TURNED OUT TO BE A DISAPPOINTMENT FOR TWO MAIN REASONS THE FIRST WAS THAT ECONOMISTS DID NOT KNOW ENOUGH IN A CLASSROOM IT WAS SUFFICIENT TO KNOW THAT IF A CERTAIN ACTION IS TAKEN THE RESULT WILL BE IN A CERTAIN DIRECTION THE CURVE IN THE DIAGRAM WILL GO UP OR DOWN TO PUT THAT INTO PRACTICE IT WAS NECESSARY TO KNOW HOW MUCH AND ECONOMISTS DID NOT KNOW THAT THEY DID NOT KNOW IN THE KENNEDYJOHNSON PERIOD HOW MUCH FISCAL STIMULUS COULD BE EXERTED WITHOUT AN INFLATIONARY RESULT IN THE NIXON PERIOD WE DID NOT KNOW HOW FAR OR HOW LONG THE ECONOMY WOULD HAVE TO BE RESTRAINED TO ERADICATE INFLATIONARY EXPECTATIONS THE REAGAN ERA ECONOMISTS DID NOT KNOW HOW MUCH ADDITIONAL PRIVATE SAVING AND EFFORT WOULD RESULT FROM ANY SPECIFIC TAX CUT THESE DEFICIENCIES MIGHT NOT HAVE PROVED SO SERIOUS IF THE POLITICAL PROCESS HAD BEEN MORE EVENHANDED AND PATIENT IN APPLYING THE ECONOMIC PRESCRIPTIONS BUT THE POLITICIANS ALWAYS WANTED TOO MUCH OF THE HAPPY PART OF THE PRESCRIPTIONS AND WANTED THE GOOD RESULTS TOO SOON KEYNESIANISM LEGITIMIZED FOR PRESIDENT JOHNSON HIS NATURAL PREFERENCES FOR LOW TAXES AND HIGH EXPENDITURES PRESIDENT NIXON WAS NOT INCLINED TO WAIT FOR THE LONG RUN IN WHICH THE OLD TIME RELIGION OF HIS ECONOMIC ADVISERS MIGHT HAVE WORKED PRESIDENT REAGAN AND CONGRESS PUSHED THE REDUCTION OF TAX RATES BEYOND THE POINT WHERE THE ECONOMIC ARGUMENT WAS VALID THERE ARE I BELIEVE SOME LESSONS HERE FOR THE 1993 NEW ECONOMICS ONE IS NOT TO EMBARK UPON POLICIES WHOSE SUCCESSFUL EXECUTION WOULD REQUIRE KNOWLEDGE THAT YOU DO NOT HAVE THE SECOND IS TO RECOGNIZE THAT ECONOMISTS' IDEAS TAKE ON A LIFE OF THEIR OWN WHEN INTRODUCED INTO THE POLITICAL PROCESS AND MAY BE USED IN WAYS THE ECONOMIST DID NOT CONTEMPLATE THESE ARE LESSONS OF MODESTY AND CAUTION BUT THERE IS ANOTHER LESSON ALSO THAT LESSON IS THAT COMING INTO WASHINGTON FOR THE FIRST TIME AS THE GOVERNMENT HAVING WON AN ELECTION IS NOT CONDUCIVE TO MODESTY AND CAUTION ON THE CONTRARY IT LEADS TO A FEELING OF KNOWING EVERYTHING AND BEING ABLE TO DO EVERYTHING SOMETIMES I THINK THAT WE WOULD BE BETTER OFF TO BE GOVERNED BY THE PARTY THAT JUST LOST THE ELECTION IT MIGHT BE MORE HUMBLE BUT I BELIEVE THAT HISTORY ALSO HAS A LESSON FOR US KIBITZERS WE SHOULD BE CAUTIOUS AND HUMBLE IN CRYING DISASTER EVERY TIME A NEW ECONOMICS COMES ALONG THERE SEEMS TO BE AN EQUILIBRATING FORCE IN THE AMERICAN ECONOMIC AND POLITICAL SYSTEM THAT KEEPS THE VANITIES OF EACH NEW ECONOMICS FROM BEING CARRIED TOO FAR FOR TOO LONG I SAY THAT AS A VETERAN OF ONE OF THE GREATEST VANITIES OF RECENT EXPERIENCE THE PRICEANDWAGE CONTROLS IMPOSED IN 1971 AT THE TIME WISE MEN WERE SAYING THAT THE FREE MARKET HAD COME TO AN END FOREVER BUT THOSE CONTROLS HAVE VANISHED WITHOUT A TRACE SOMETHING KEEPS OUR FOLLIES FROM BEING FATAL OR EVEN VERY SERIOUS I EXPECT THAT TO CONTINUE TO BE TRUE A FORMER CHAIRMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS MR STEIN IS AN AMERICAN ENTERPRISE INSTITUTE FELLOW 9304290030 930429 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG SOME PEOPLE SAY THE STRONGEST FORCE ON EARTH IS NUCLEAR FUSION I SAY IT'S PARENTAL GUILT THE ENDLESS WORRY THAT UNLESS SOME BENEFIT OR OTHER IS MADE AVAILABLE TO ONE'S OFFSPRING THEY WON'T SUCCEED IN LIFE PARENTAL GUILT HAS LONG DRIVEN THE SALE OF HOME COMPUTERS AND IT IS A BIG REASON FOR SURGING SALES OF A NEW TYPE OF SOFTWARE ELECTRONIC ENCYCLOPEDIAS ON CDROMS THE HIGHCAPACITY COMPUTER DISKS THAT PLAY MULTIMEDIA EDUCATIONAL SOFTWARE TITLES ON SPECIAL DISK DRIVES THERE ARE THREE LEADING CDROM ENCYCLOPEDIAS THE NEW GROLIER MULTIMEDIA ENCYCLOPEDIA COMPTON'S INTERACTIVE ENCYCLOPEDIA AND A NEW ENTRY FROM MICROSOFT CALLED ENCARTA EACH PACKS THE ENTIRE TEXT OF A TRADITIONAL MULTIVOLUME ENCYCLOPEDIA ONTO A SINGLE DISK AUGMENTED BY PICTURES AUDIO CLIPS MAPS ANIMATION AND SHORT VIDEOS EACH COSTS ABOUT 300 AT DISCOUNT STORES THOUGH THEY SOMETIMES COME AS PART OF A PACKAGE WHEN YOU BUY A CDROM DRIVE USUALLY 300 TO 900 OR A COMPUTER EQUIPPED WITH ONE BEFORE COMPARING THE THREE IT'S WORTH CONSIDERING THE STRENGTHS AND WEAKNESSES OF ANY ELECTRONIC ENCYCLOPEDIA VS THE FAMILIAR SETS OF BOOKS BY FAR THE BIGGEST ADVANTAGE OF ELECTRONIC ENCYCLOPEDIAS IS THEIR ABILITY TO RAPIDLY SEARCH ACROSS ALL VOLUMES AND ARTICLES FOR TOPICS YOU CHOOSE THIS NOT ONLY SPEEDS THE PROCESS OF LOOKING UP MATERIAL BUT ALSO DIGS OUT CITATIONS YOU MAY OVERLOOK IN A BOOK FOR INSTANCE A REFERENCE TO THOMAS JEFFERSON IN AN ARTICLE ON ARCHITECTURE A SECOND ADVANTAGE IS THE ADDITION OF AUDIO VIDEO AND ANIMATION THE ABILITY TO LISTEN TO A PIECE OF MUSIC OR SEE A FILM CLIP OF THE 1969 MOON LANDING IS ESPECIALLY APPEALING TO TODAY'S KIDS A THIRD BIG PLUS IS THAT YOU CAN MOVE INFORMATION DIRECTLY FROM THE ENCYCLOPEDIAS INTO REPORTS YOU'RE WRITING IN A WORDPROCESSING PROGRAM FINALLY ELECTRONIC ENCYCLOPEDIAS COST MUCH LESS THAN MOST PAPER COMPETITORS IF YOU DON'T COUNT THE COST OF THE HARDWARE NEEDED TO USE THEM BUT THERE ARE SIGNIFICANT DRAWBACKS AS WELL I COMPARED THE THREE CDROM PRODUCTS TO THE FAMILIAR 700 WORLD BOOK ENCYCLOPEDIA WHICH ISN'T AVAILABLE IN MULTIMEDIA FORM AND FOUND MOST ARTICLES I CHECKED WERE BOTH LONGER AND BETTERWRITTEN IN THE WORLD BOOK THE COMPUTER PRODUCTS ALSO CAN'T MATCH THE VIVIDNESS AND DETAIL OF COLOR PHOTOS MAPS AND TABLES IN THE WORLD BOOK THE ELECTRONIC REFERENCES REQUIRE YOU TO SIT AT A COMPUTER AND STARE AT A SCREEN NOT THE BEST WAY TO READ AND THE EASE WITH WHICH ELECTRONIC TEXT CAN BE COPIED WHOLE THREATENS TO DIMINISH NOTETAKING SKILLS AND INCREASE PLAGIARISM DESPITE WARNINGS IN THE MANUALS AND AUTOMATIC TAGGING OF SOME TEXT WITH COPYRIGHT LINES WHICH CAN BE ERASED STILL KIDS LIKE THESE DISKS MY EIGHTHGRADER STRONGLY PREFERS THE COMPUTERIZED VERSION IT'S MORE OF A REAL EXPERIENCE HE SAYS SO WHICH ONE IS BEST ALL THREE ARE ADEQUATE FOR SCHOOLAGE CHILDREN WITH THOUSANDS OF ARTICLES ON A WIDE RANGE OF SUBJECTS BUT I FOUND THE COMPTON'S TEXT MORE GEARED TO YOUNGER KIDS AND LIKELY TO BE LESS SATISFYING AS THEY GROW UP GROLIER WAS SOMETIMES TOO ADULTORIENTED BUT OFTEN STRIKES A GOOD BALANCE BETWEEN OLDER AND YOUNGER KIDS ENCARTA IS LIKEWISE WRITTEN AT A MIDRANGE LEVEL OF THE TWO ESTABLISHED COMPETITORS GROLIER IS A BIT BETTER IN MY VIEW ITS INTERFACE IS A LITTLE CLUMSY BUT IT HAS A MORE VERSATILE SEARCHING SYSTEM AND A NICER SELECTION OF VIDEOS THAN COMPTON'S INCLUDING TERRIFIC NEWSREEL FOOTAGE OF SUCH EVENTS AS THE HINDENBURG DISASTER AND THE LONDON BLITZ BOTH ARE AVAILABLE FOR IBMCOMPATIBLE PCS AND APPLE MACINTOSH COMPUTERS WITHOUT A DOUBT THE MOST INTERESTING AND PROMISING ENTRY IS MICROSOFT'S ENCARTA ESPECIALLY IF YOU CAN WAIT A YEAR OR SO AS IS TYPICAL OF NEW MICROSOFT PRODUCTS ENCARTA HAS BOTH SOME WONDERFUL FEATURES AND MAJOR WEAKNESSES THE COMPANY MUST REMEDY IN SUBSEQUENT REVISIONS ENCARTA HAS BY FAR THE MOST ATTRACTIVE AND EASIEST USER INTERFACE IT IS THE ONLY ONE OF THE THREE IN WHICH PICTURES APPEAR ALONGSIDE THE TEXT IN THE OTHERS YOU MUST SWITCH TO A SEPARATE SCREEN TO VIEW THEM DESTROYING ANY SYNERGY BETWEEN ART AND WORDS ITS GRAPHICS AND AUDIO CLIPS ARE FAR BETTER THAN ITS RIVALS' THE MANUALS AND HELP SYSTEM ARE SUPERB ENCARTA ALSO MAKES COMPLICATED SEARCHES EASY WITH A RESEARCH WIZARD AN OPTIONAL PROGRAMWITHINAPROGRAM THAT GUIDES USERS STEP BY STEP THROUGH THE CREATION OF A COMPLEX SEARCH REQUEST BUT ENCARTA HAS THREE MAIN WEAKNESSES ITS TEXT COMES FROM THE FUNK & WAGNALLS SUPERMARKET ENCYCLOPEDIA WITH SHORT PIECES ON THE COMPUTER INDUSTRY ADDED BY MICROSOFT INCLUDING AN AUDIO CLIP OF COMPANY CHIEF BILL GATES RECITING HIS CORPORATE VISION THERE ARE ALSO PIECES BUT NO AUDIO ON GATES RIVALS LIKE APPLE'S JOHN SCULLEY MOREOVER ENCARTA HAS NO HISTORICAL VIDEO CLIPS AND FEW VIDEOS OF ANY KIND IT RELIES ON STILL PHOTOS ACCOMPANIED BY AUDIO AND ANIMATIONS ENCARTA IS ALSO PAINFULLY SLOW EVEN ON A RELATIVELY POWERFUL PC FOR NOW IT WORKS ONLY ON IBMCOMPATIBLE PCS RUNNING MICROSOFT'S WINDOWS BUT ENCARTA HAS A PROMISING FUTURE MICROSOFT IS HIRING EXPERIENCED ENCYCLOPEDIA EDITORS TO IMPROVE THE TEXT AND IS WORKING ON ADDING VIDEOS AND MAKING ENCARTA FASTER IT ALSO PLANS A MACINTOSH VERSION YOU WON'T GO WRONG WITH ANY OF THESE IF YOU MUST BUY NOW GROLIER IS A GOOD CHOICE IF YOU CAN WAIT OR ARE WILLING TO BUY NOW AND UPGRADE TO NEWER VERSIONS ENCARTA IS PROBABLY THE WAY TO GO 9304290029 930429 INTERNATIONAL OPTIMISM SPREADS AMONG TIBETAN EXILES MANY BELIEVE WORLD IS FOCUSING ON THEIR CAUSE BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL DHARMSALA INDIA NEARLY EVERY DAY THEY COME BUDDHIST MONKS IN SOILED SOMETIMES TORN ROBES CHILDREN TOO YOUNG TO WALK MEN AND WOMEN WHO HAVE TREKKED OVER THE WORLD'S HIGHEST MOST REMOTE MOUNTAIN PASSES MORE THAN THREE DECADES AFTER THE DALAI LAMA FLED CHINESERULED TIBET THE NUMBER OF TIBETANS WHO HAVE FOLLOWED THEIR SPIRITUAL AND ERSTWHILE LEADER INTO EXILE CONTINUES TO GROW SOMETIMES BY NEARLY 500 A MONTH REPORTS OF POLITICAL REPRESSION CULTURAL SUBJUGATION AND VIOLENCE BY CHINESE AGAINST THE SIX MILLION TIBETANS WHO REMAIN IN THEIR MOUNTAINOUS HOMELAND PERSIST BUT A SENSE OF OPTIMISM IS SPREADING AMONG THE EXILES IN THIS INDIAN HILL STATION NEARLY 6000 FEET UP IN THE HIMALAYAN FOOTHILLS GRASPING AT HINTS OF GREATER ACCEPTANCE OF THEIR GOVERNMENTINEXILE MANY BELIEVE WORLD ATTENTION IS FOCUSING ON THEIR CAUSE ON TUESDAY THE DALAI LAMA VISITED PRESIDENT CLINTON AND VICE PRESIDENT GORE IN WASHINGTON MR CLINTON IS THE SECOND US PRESIDENT GEORGE BUSH WAS THE OTHER TO RECEIVE THE WINNER OF THE 1989 NOBEL PEACE PRIZE LEADERS OF TIBET'S EXILE COMMUNITY THINK IT IS SIGNIFICANT THAT THE MEETING WAS ANNOUNCED BY WASHINGTON WHICH IN THE PAST SOUGHT TO AVOID IRKING CHINA THE DALAI LAMA'S MEETING WITH MR BUSH A ONETIME EMISSARY TO CHINA WAS DISCLOSED A DAY BEFORE IT TOOK PLACE THE WHITE HOUSE SAID THE 58YEAROLD TIBETAN BUDDHIST LEADER THANKED THE PRESIDENT FOR HIS SUPPORT OF HUMAN RIGHTS IN CHINA THE US SUPPORTS HUMAN RIGHTS AND A DISTINCT IDENTITY FOR TIBETANS BUT RECOGNIZES TIBET AS PART OF CHINA IN A RECENT INTERVIEW AT HIS AIRY BUT WELLGUARDED BUNGALOW ATOP A CEDARCOVERED PROMONTORY IN DHARMSALA THE DALAI LAMA SAID US POLITICIANS NOW CAN BE MORE RECEPTIVE TO TIBET'S CAUSE THAN THEY WERE DURING THE COLD WAR WHEN THE US USED RELATIONS WITH CHINA AS A COUNTERBALANCE TO SOVIET POWER HE ADDS HE HAS OLD FRIENDS IN WASHINGTON AMONG THEM VICE PRESIDENT GORE WHO TELL HIM THE WHITE HOUSE'S HUMANRIGHTS AGENDA WILL INCLUDE TIBET PROMINENTLY I AM VERY VERY MUCH HOPING AMERICANS WILL FOLLOW THEIR ANCESTORS' THINKING AND ADOPT A POLICY BASED ON MORAL ETHICS SAYS THE DALAI LAMA WHO IS REVERED BY HIS RELIGIOUS FOLLOWERS AS A REINCARNATION OF BUDDHA THE TIME HAS COME TO THINK SERIOUSLY TO STRAIGHTEN THE CROOKED PATH WE HAVE TAKEN AMERICA HAS A SPECIAL RESPONSIBILITY ALREADY SOME MEMBERS OF THE SENATE INCLUDING SEN GEORGE MITCHELL THE MAJORITY LEADER HAVE INTRODUCED LEGISLATION TO MAKE CHINA'S MOSTFAVOREDNATION TRADE STATUS EXPLICITLY CONDITIONAL ON IMPROVEMENT OF ITS HUMANRIGHTS RECORD IN TIBET CRITICS SAY CHINA'S POSTURE ON TIBET SHOWS THAT DESPITE ECONOMIC REFORMS THAT HAVE BROUGHT GROWTH TO MUCH OF THE COUNTRY ITS POLITICAL CLIMATE REMAINS HARSH CHINA ANNEXED TIBET IN 1950 AFTER A MILITARY INVASION SAYING IT HAD LIBERATED PART OF CHINESE TERRITORY AT FIRST THE DALAI LAMA COOPERATED WITH BEIJING BUT NINE YEARS LATER HE FLED ON HORSEBACK OVER THE HIMALAYAS INTO EXILE SINCE DENG XIAOPING CAME TO POWER IN 1978 BEIJING AND DHARMSALA HAVE HAD SPORADIC CONTACT BUT NO FORMAL TALKS TIBETANS IN DHARMSALA SAY THEY ARE WILLING TO MEET BEIJING WITHOUT CONDITIONS EVEN THE MATTER OF SOVEREIGNTY COULD BE LEFT UNTIL LATER TO DISCUSS WHAT THEY BELIEVE ARE RAMPANT HUMANRIGHTS VIOLATIONS AND ENVIRONMENTAL DAMAGE INCLUDING NUCLEARWASTE DUMPING IN THEIR HIGHALTITUDE HOMELAND THE URGENCY OF THOSE ISSUES HAS ATTRACTED US BACKERS INCLUDING SOME IN CONGRESS DEMOCRATIC SEN DIANE FEINSTEIN OF CALIFORNIA FOR INSTANCE RECENTLY URGED SECRETARY OF STATE WARREN CHRISTOPHER AT AN APPROPRIATIONS COMMITTEE HEARING TO KEEP A CLOSE WATCH ON HUMAN RIGHTS IN TIBET MANY COUNTRIES ARE COMING AROUND TO REALIZE THAT THEY DO NOT RECOGNIZE CHINA'S CLAIM TO TIBET IN ITS TOTALITY SAYS TASHI WANGDI THE EXILE GOVERNMENT'S FOREIGN MINISTER THE ONE GOVERNMENT TO MOVE TOWARD ACKNOWLEDGING DHARMSALA'S CLAIM TO REPRESENT THE TIBETAN PEOPLE IS TAIWAN RULED BY NATIONALIST CHINESE SINCE THE COMMUNISTS TOOK POWER ON THE MAINLAND IN 1949 TAIWAN IS REVAMPING ITS STANCE ON TIBET EVEN THOUGH IT LIKE BEIJING CONSIDERED TIBET PART OF CHINA FOR YEARS TAIPEI SECRETLY FUNDED TIBETAN EXILES APPARENTLY HOPING THEY WOULD HELP TAKE OVER TIBET IF THE NATIONALISTS EVER REGAINED CONTROL OF THE MAINLAND THAT ERA OF WHAT THE DALAI LAMA CALLS MISUNDERSTANDING CAME TO AN END IN NOVEMBER WHEN TAIWAN'S PRESIDENT LEE TENGHUI FOR THE FIRST TIME SENT AN EMISSARY TO THE DALAI LAMA IN MAY A MISSION FROM THE DALAI LAMA'S OFFICE WILL VISIT TAIPEI AND AN INVITATION ALSO HAS BEEN EXTENDED TO THE DALAI LAMA BUT THE DALAI LAMA AND HIS ADVISERS SEE LITTLE SIGN OF ANY SHIFT IN CHINA'S HARDLINE APPROACH TO TIBET DESPITE BEIJING'S CLAIMS TO HAVE IMPROVED THE LOT OF TIBETANS DURING ITS RULE THE TIBETANS HAVE COMPILED A DOSSIER OF DAMAGE THEY SAY HAS BEEN DONE IMPOSITION OF CHINESE CULTURE THROUGH HUGE POPULATION TRANSFERS AND ENFORCED BIRTHCONTROL POLICIES THOUSANDS OF BUDDHIST MONASTERIES DESTROYED WIDESPREAD ENVIRONMENTAL DESTRUCTION AND AS MANY AS 12 MILLION TIBETANS KILLED OR ALLOWED TO DIE BECAUSE OF CHINESE ABUSES MOST DETAILS OF THE ALLEGATIONS ARE PROVIDED BY THE REFUGEES WHO FLOW DAILY INTO DHARMSALA WHERE AN EXILE COMMUNITY OF 10000 ALREADY LIVES AFTER 33 YEARS IN A CHINESE PRISON PALDEN GYATSO A TIBETAN BUDDHIST MONK FLED CHINA IN SEPTEMBER ON FOOT AND THE BACK OF A MOTORCYCLE AFTER PAYING A BRIBE TO CROSS THE BORDER INTO NEPAL WITH SUNKEN CHEEKS LARGE EYES AND A HUNCHED BACK UNDER HIS RED ROBES HE APPEARS FAR OLDER THAN HIS 62 YEARS ARRESTED IN THE TENSE DAYS BEFORE THE DALAI LAMA'S FLIGHT IN 1959 HE REMEMBERS VIVIDLY THE HUMILIATION OF THOSE CONDEMNED TO DEATH SOME WERE FORCED TO DANCE JIGS ON HEARING THEIR SENTENCES THEIR FAMILIES WERE REQUIRED TO PAY FOR THE ROPES USED TO BIND THE CONDEMNED AND THE BULLETS USED TO EXECUTE THEM HIS ACCOUNTS MATCH DESCRIPTIONS GIVEN TO HUMANRIGHTS GROUPS BY OTHER EXILES CAN THERE EXIST A MORE CRUEL SYSTEM HE ASKS ANOTHER REFUGEE SAYS TIBET TODAY IS NOTHING BUT A PRISON KHEDUP JAMYANG A 43YEAROLD FORMER POSTAL WORKER AND FARMER WAS IMPRISONED FIVE YEARS FOR SENDING AN OFFICIAL CHINESE PUBLICATION TO THE TIBETAN EXILES THE POLICY OF THE CHINESE IS DESTROY TIBET HE SAYS THE DALAI LAMA SAYS HE DOESN'T THINK CHINA WILL KEEP ITS POLICY FOREVER CHINA IS A BIG NATION WITH A LONG HISTORY AND DEEP CULTURE HE SAYS THE COMMUNIST SYSTEM SIMPLY ISN'T SUITABLE IT'S ONLY A MATTER OF TIME BEFORE THINGS WILL CHANGE AND CHANGE FOR THE BETTER STILL AFRAID THAT CHINA'S SUPPRESSION OF TIBETAN NATIONALISM MAY ERADICATE TIBETAN CULTURE THE GOVERNMENT IN EXILE IS TRYING TO PRESERVE TIBET'S TRADITIONS IN THIS SCENIC INDIAN TOWN A LARGE NUMBER OF MONASTERIES HAVE SPRUNG UP IN THE WOODED HILLS MANY NAMED AFTER MONASTERIES IN TIBET OTHERS EXIST AT REFUGEE CENTERS ELSEWHERE IN INDIA AND ABROAD WITH DONATIONS THE DALAI LAMA'S ADMINISTRATION SPONSORS A PERFORMINGARTS INSTITUTE AND RUNS A BOARDING SCHOOL WHERE MORE THAN 2000 TIBETAN CHILDREN MANY OF THEM BROUGHT HERE EVEN BEFORE THEY CAN WALK BY PARENTS WHO THEN RETURN TO CHINA LEARN THE LANGUAGE AND WAYS OF THEIR ANCESTORS THE SCHOOL ALSO PROVIDES VOCATIONAL TRAINING IN TIBETAN HANDICRAFTS AND PAINTING TWEWANG YESHI 39 DIRECTOR OF THE SCHOOL KNOWN AS THE TIBETAN CHILDREN'S VILLAGE SAYS THE IDEA IS TO PRESERVE A SEED OF CULTURE TO PLANT IN THEIR HOMELAND IF IT IS EVER GRANTED AUTONOMY BY CHINA IT'S VERY IMPORTANT FOR US TO REMAIN TIBETAN SAYS MR YESHI WHO CAME TO DHARMSALA IN 1961 WITH HIS FAMILY YOU HAVE RESPONSIBILITY FOR YOUR CAUSE YOUR TRADITIONS AND YOUR WAY OF LIFE 9304290028 930429 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION LSB INDUSTRIES INC AN OFFERING OF 800000 SHARES OF CONVERTIBLE EXCHANGEABLE CLASS C PREFERRED STOCK SERIES 2 VIA LAZARD FRERES & CO PANHANDLE EASTERN CORP AN OFFERING OF UP TO 10 MILLION COMMON SHARES ROWAN COS AN OFFERING OF 10 MILLION COMMON SHARES LEHMAN BROTHERS 9304290027 930429 PEPPERAND SALT TO THINK UP NEW QUESTIONS YOU CAN ALWAYS TELL A NEWCAR OWNER IT'S THE PERSON READING THE OWNER'S MANUAL IN ORDER TO OPEN THE TRUNK THINGS HAVE IMPROVED INSTEAD OF FEELING DOWN IN THE DUMPS I FEEL DOWN IN THE LANDFILLS 9304290026 930429 BB&T FINANCIAL SETS PURCHASE WILSON NC BB&T FINANCIAL CORP A BANK HOLDING COMPANY SAID IT APPROVED A PLAN TO BUY CITIZENS SAVINGS BANK A MUTUAL SAVINGS BANK IN MOORESVILLE NC TERMS OF THE TRANSACTION WHICH WILL INVOLVE BB&T COMMON STOCK HAVEN'T YET BEEN DETERMINED THE COMPANY SAID BB&T HAS ASSETS OF 722 BILLION WHILE CITIZENS SAVINGS HAS ASSETS OF 63 MILLION 9304290025 930429 ECONOMY CLINTON MULLS BARRING LAWSUITS AGAINST DOCTORS PROPOSAL TRANSFERS LIABILITY TO INSURERS AND HMOS AWAY FROM HOSPITALS BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS CONSIDERING A PROPOSAL TO REWRITE THE MEDICAL LIABILITY LAWS SO DOCTORS AND HOSPITALS COULDN'T BE SUED FOR MALPRACTICE INSTEAD HEALTH PLANS WOULD BE SOLELY LIABLE FOR DAMAGES PEOPLE FAMILIAR WITH THE PROPOSAL SAID IT IS KNOWN AS ENTERPRISE LIABILITY IT WOULD TRANSFER LIABILITY IN MALPRACTICE CASES TO INSURANCE COMPANIES HEALTH MAINTENANCE ORGANIZATIONS AND OTHER NETWORKS THAT PROVIDE A STANDARD PACKAGE OF BENEFITS THE CLINTON HEALTH PLAN IS EXPECTED TO PROPOSE PROPONENTS ARGUE THAT SUCH A SYSTEM WOULD CUT DOWN LITIGATION COSTS AND TOTAL DAMAGE AWARDS BY REDUCING TO ONE THE NUMBER OF DEFENDANTS IN ANY MALPRACTICE CASE TODAY IT IS COMMON TO SEE A HALFDOZEN DEFENDANTS IN A SURGERY CASE FOR EXAMPLE THE SURGEON THE ANESTHESIOLOGIST THE NURSE AND THE HOSPITAL MIGHT BE INCLUDED OPPONENTS ARGUE THAT JURIES WOULD BE MORE INCLINED TO ASSESS DAMAGES AGAINST ORGANIZATIONS AND THAT PATIENTS WOULD BE MORE LIKELY TO FILE CLAIMS AGAINST THEM THAN AGAINST INDIVIDUAL DOCTORS PROPONENTS ALSO CONTEND THAT BECAUSE INDIVIDUAL PHYSICIANS WOULD NO LONGER BE HELD LIABLE FOR MALPRACTICE DAMAGES THEY WOULD HAVE MUCH LESS INCENTIVE TO ENGAGE IN DEFENSIVE MEDICINE THE PRACTICE OF PERFORMING UNNECESSARY PROCEDURES JUST TO PROTECT THEMSELVES AGAINST LAW SUITS THE CHANGES ALSO COULD CUT DOCTORS' MALPRACTICE INSURANCE PREMIUMS ADVOCATES SAY PRESIDENT CLINTON IS REVIEWING THE ENTERPRISE LIABILITY OPTION ALONG WITH SEVERAL OTHER PROPOSALS INCLUDING THE POSSIBILITY OF REQUIRING THAT ALL MALPRACTICE CLAIMS GO TO ARBITRATION BEFORE BEING HEARD IN COURT HE IS ALSO STUDYING THE IDEA OF PLACING A CAP ON THE DAMAGES COURTS CAN AWARD IN MALPRACTICE CASES BUT ADMINISTRATION OFFICIALS ARE FOCUSING ON THE ENTERPRISE LIABILITY IDEA IN DISCUSSIONS WITH PHYSICIAN AND HOSPITAL GROUPS THE IDEA IS CONTROVERSIALEVEN AMONG DOCTORS AND HOSPITALS WHO WOULD BE RELIEVED OF DIRECT LIABILITY 'SOME SIGNIFICANT PROBLEMS' THERE IS SOMETHING SEDUCTIVE ABOUT THE POSSIBILITY OF A NOFAULT SYSTEM AND AVOIDING THE HASSLE OF BEING NAMED IN A SUIT BUT THERE ARE SOME SIGNIFICANT PROBLEMS WITH IT SAID KIRK JOHNSON GENERAL COUNSEL OF THE AMERICAN MEDICAL ASSOCIATION BOTH HE AND FREDERIC ENTIN GENERAL COUNSEL OF THE AMERICAN HOSPITAL ASSOCIATION SAY SUCH A SYSTEM WOULD REDUCE THE AUTONOMY OF DOCTORS AND HOSPITALS IN PRACTICING MEDICINE CHIP KAHN EXECUTIVE VICE PRESIDENT OF THE HEALTH INSURANCE ASSOCIATION OF AMERICA AGREED SAYING INSURANCE COMPANIES WOULD PROBABLY TIGHTEN OVERSIGHT AND INCREASE SECONDGUESSING OF DOCTORS AND HOSPITALS FOR FEAR THEIR SLIPUPS COULD COST HUNDREDS OF THOUSANDS OF DOLLARS IN LIABILITY CLAIMS CLEARLY THE DEVIL IS IN THE DETAILS OF ANY SUGGESTION LIKE THAT MR KAHN SAID IT MEANS THE INSURANCE COMPANIES WOULD HAVE TO BE BREATHING DOWN PHYSICIANS' AND HOSPITALS' NECKS EVEN MORE THAN THEY DO NOW BUT HEALTH PLANS' HEIGHTENED OVERSIGHT OF PROVIDERS COULD SOOTHE CONSUMERS' CONCERNS THAT LIFTING LIABILITY FROM DOCTORS AND HOSPITALS COULD REDUCE THEIR PROTECTION AGAINST BAD MEDICAL CARE NEARLY EVERYONE AGREES THAT MALPRACTICE LIABILITY HAS HELPED PROPEL THE EXPLOSIVE RISE IN US HEALTHCARE COSTS DOCTORS PAID 5 BILLION IN MALPRACTICE PREMIUMS IN 1991 ACCORDING TO THE AMA AND ESTIMATES OF DEFENSIVE MEDICINE THAT YEAR RANGE FROM 4 BILLION TO 25 BILLION ACCORDING TO A RECENT STUDY BY LEWINVHI A CONSULTING FIRM MOST DOCTORS AND HOSPITALS SAY THEY PREFER AN OUTRIGHT CAP ON DAMAGE AWARDS ANY KIND OF LIABILITY SYSTEM THAT DOESN'T INCLUDE ELEMENTARY AND NOW PROVEN SUCCESSFUL TORT REFORMS SUCH AS CAPPING DAMAGE AWARDS SAID THE AMA'S MR JOHNSON ISN'T GOING TO RESTRAIN COSTS HOWEVER CAPS ON DAMAGES ALSO ARE CONTROVERSIAL THE AMERICAN ASSOCIATION OF TRIAL LAWYERS A BIG CONTRIBUTOR TO THE CLINTON CAMPAIGN VEHEMENTLY OPPOSES THEM AND HILLARY RODHAM CLINTON WHO HEADS THE ADMINISTRATION'S HEALTH REFORM TASK FORCE IS A TRIAL LAWYER ALSO A NUMBER OF CONSUMER GROUPS ARGUE THAT DAMAGE CEILINGS WOULD LIMIT PATIENTS' RECOURSE AGAINST BAD MEDICAL CARE MEANWHILE TREASURY SECRETARY LLOYD BENTSEN TOLD A SMALL GROUP OF REPORTERS THAT HE ISN'T CERTAIN CONGRESS WILL PASS A HEALTHCARE REFORM PACKAGE THIS YEAR I WOULD HOPE THAT WE WOULD GET IT THROUGH THIS YEAR HE SAID IT'LL BE A TOUGH FIGHT DOING IT HE SAID THE HEALTH PLAN WILL BE AS MAJOR A PIECE OF LEGISLATION AS I'VE SEEN AND WILL REQUIRE EXTENSIVE CONGRESSIONAL HEARINGS LAST NIGHT PRESIDENT AND MRS CLINTON HOSTED A DINNER AT THE WHITE HOUSE FOR MEMBERS OF THE HOUSE DEMOCRATIC LEADERSHIP AS WELL AS HEADS OF CONGRESSIONAL PANELS WHO WILL HELP SHAPE THE BILL SEPARATELY THE PRESIDENT MET WITH NINE GOVERNORS TO DISCUSS HEALTHCARE REFORM FOLLOWING THE TWOHOUR MEETING SEVERAL OF THE GOVERNORS SAID THAT MR CLINTON WAS RECEPTIVE TO THEIR PUSH FOR FLEXIBILITY FOR INDIVIDUAL STATE PLANS AND FOR ESTABLISHING A PARTNERSHIP BETWEEN STATE AND FEDERAL AGENCIES TO FUND PROGRAMS THE GOVERNORS ALSO CALLED FOR MORE STATE CONTROL AND SWIFT REFORM 9304290024 930429 REVIEW & OUTLOOK EDITORIAL POLAND'S PROGRESS NO ONE DOUBTED THAT AFTER THE EUPHORIA OF SOLIDARITY AND LIBERATION FROM COMMUNISM THE HARD PART LAY AHEAD FOR POLAND AND FEW IN THE US WANTED ANYTHING OTHER THAN FOR THE POLES TO SUCCEED SOMEHOW WELL IT HAS BEEN HARD BUT THE UPDATE ON THEIR PROGRESS REVEALS SOMETHING ABOUT PUBLIC DESIRES AND POSTCOMMUNIST POLITICS THE COUNTRY'S PARLIAMENT IS STILL DITHERING WITH A TWOYEAROLD MASS PRIVATIZATION BILL BUT WHEN THE SHARES OF ONE OF POLAND'S LARGEST COMMERCIAL BANKS WIELKOPOLSKA BANK KREDYTOWY WENT ON OFFER TUESDAY THOUSANDS OF POLES LINED UP TO BUY SHARES OTHER BANK PRIVATIZATIONS ARE EXPECTED SOON THE IMPORTANCE OF A PRIVATE BANKING SECTOR CANNOT BE UNDERESTIMATED FREED FROM STATE DIRECTION BANKS CAN MAKE MORE RATIONAL LENDING DECISIONS RATHER THAN PUMPING MONEY INTO LOSSMAKING STATE ENTERPRISES PRIME MINISTER HANNA SUCHOCKA'S RECENTLY APPROVED ENTERPRISE PACT HAS PAVED THE WAY FOR THE EMPLOYEELED PRIVATIZATION OF MORE THAN 4000 LARGER ENTERPRISES IN ADDITION MORE THAN 2000 SMALL AND MIDSIZED ENTERPRISES HAVE ALREADY BEEN PRIVATIZED VIA EMPLOYEE BUYOUTS PUBLIC OFFERINGS AND THE LIKE THESE DEVELOPMENTS HELP PUT THE PARLIAMENT'S LONGDELAYED PRIVATIZATION BILL INTO PERSPECTIVE IN FACT THE BILL'S PRIMARY IMPORTANCE IS POLITICAL THE PUBLIC WHICH HAS REPEATEDLY SHOWN SUPPORT FOR PRIVATIZATION EFFORTS WANTS A SIGNAL THAT THE PROCESS WILL CONTINUE INTERNATIONAL INVESTORS ALSO WANT SUCH A SIGNAL BUT POLAND'S PARLIAMENTARIANS SEEM TO LIVE IN A BUBBLE OF OBLIVION EITHER IGNORANT OF THE PUBLIC'S DESIRES AND THE NATION'S NEEDS OR SIMPLY TOO ATTACHED TO THEIR OWN POLITICAL AGENDAS TO CARE THOUGH IT'S CERTAINLY DISHEARTENING TO SEE A PARLIAMENT SO OUT OF STEP WITH THE NEEDS AND WISHES OF ITS CONSTITUENTS THERE IS GREAT SOLACE AT THIS JUNCTURE IN SEEING THAT THE BICKERING HASN'T STOPPED THE INDOMITABLE WILL OF POLES TO HAVE A MARKET ECONOMY 9304290023 930429 MRS CLINTON GETS STACKS OF LETTERS ON HEALTH REFORM SOME ARE SAD OTHERS OFFER AID ON LIMITING THE HIGH COST OF MEDICAL CARE IN AMERICA BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL I AM A DIVORCED MOTHER OF TWO CHILDREN MY CHILDREN DO NOT HAVE HEALTHCARE COVERAGE AND WHEN THEY ARE ILL I LOSE INCOME AND MY WORK SUFFERS MY HEALTH INSURANCE FOR THEM IS PREVENTION AND I WHISPER HEALTHY AND STRONG HEALTHY AND STRONG INTO THEIR EARS EVERY NIGHT THEY SIMPLY CANNOT GET SICK IN WRITING THAT LETTER TO HILLARY RODHAM CLINTON VICTORIA OLSEN OF GOLETA CALIF JOINED A THRONG OF CORRESPONDENTS SEEKING THE FIRST LADY'S ATTENTION JUST ABOUT EVERYBODY WITH A 29CENT STAMP SO IT WOULD SEEM IS PRESENTING MRS CLINTON WITH AN IDEA FOR FIXING THE HEALTHCARE SYSTEM TOMMIE RICHARDSON OF WAXAHACHIE TEXAS DROPPED THE FIRST LADY A NOTE SUGGESTING THAT THE GOVERNMENT PROVIDE ABSOLUTELY FREE HOSPITAL DOCTOR AND MEDICINE BENEFITS TO ANYONE WHO IS A NONSMOKER MICHAEL FREED AN ACCOUNTANT FROM LEOMINSTER MASS OFFERED HER THE FREED PLAN WHICH HE SAYS WOULD CUT 56 BILLION IN HEALTH COSTS JOANNE CABRAL OF CASTLE ROCK WASH PLEADED KEEP THE GOVERNMENT OUT OF IT IN ALL MORE THAN 85000 LETTERS HAVE POURED IN TO THE HEALTHCARE TASK FORCE THAT MRS CLINTON LEADS BETWEEN 3000 AND 5000 NEW ONES ARRIVE EACH DAY SINCE THE ADMINISTRATION'S OVERHAUL OF THE HEALTHCARE SYSTEM WOULD AFFECT EVERY AMERICAN THE DELUGE ISN'T SURPRISING BUT MRS CLINTON'S INVOLVEMENT SEEMS TO HAVE SPARKED A LARGER OUTPOURING THAN WOULD GO TO A FACELESS BUREAUCRAT AT THE HEALTH AND HUMAN SERVICES DEPARTMENT UNTIL NOW WRITES MICHAEL SULLIVAN OF ARLINGTON VA I WAS SOMEWHAT DOGMATIC IN MY BELIEFS AND FEELINGS CONCERNING ACCEPTABLE BEHAVIOR AND PROTOCOL OF THE SPOUSES OF ELECTED OFFICIALS BUT AFTER SEEING YOU IN ACTION ON THE HEALTHCARE ISSUE I REALIZE I WAS WRONG MANY OF THE MISSIVES ARE FROM MEDICAL PROFESSIONALS ECONOMISTS AND OTHER EXPERTS WHO HAVE COMPILED SOPHISTICATED HEALTHCARE FINANCING PROPOSALS SOME GROUPS LIKE THE AMERICAN ASSOCIATION OF ACUPUNCTURE AND ORIENTAL MEDICINE HAVE WRITTEN TO PROMOTE ALTERNATIVE SOLUTIONS BUT THE MAJORITY OF LETTERS ARE FROM EVERYDAY FOLKS WITH EVERYDAY PROBLEMS WHEN YOU READ THESE THINGS IT GIVES YOU A SENSE OF URGENCY SAYS STEVEN PIGEON A TOP HHS AIDE WHO IS IN CHARGE OF THE MAIL IT ALLOWS US TO SEE HOW IMPORTANT THIS EFFORT IS TO THE LIVES OF ORDINARY PEOPLE IT PERSONALIZES THE STATISTICS MR PIGEON SAYS MANY OF THE LETTERS ARE READ BY MRS CLINTON HERSELF SHE'S VERY INTERESTED HE SAYS ESPECIALLY IN THE PERSONAL STORIES MANY ARE POIGNANT MARILYN FULBRIGHT OF DALLAS WHO HAS UNSUCCESSFULLY ATTEMPTED INVITRO FERTILIZATION THREE TIMES WANTS IMPROVED INSURANCE COVERAGE FOR THOSE WHO SUFFER FROM INFERTILITY HILLARY I AM 41 YEARS OLD AND TRYING TO MAKE MY PEACE THAT I MAY NEVER HAVE A FAMILY SHE WRITES INFERTILITY CHANGES YOUR LIFE YOUR MARRIAGE YOUR PERSONALITY AND YOUR FRIENDSHIPS IT IS A DEVASTATING CHALLENGE IN LIFE I KNOW YOUR EFFORTS MAY NOT HELP ME BECAUSE OF MY AGE HOWEVER MAYBE I CAN HELP THE YOUNGER GENERATION WITH MY INPUT YOU NEVER KNOW YOU COULD BE HELPING CHELSEA OR HER CHILDREN INEZ KORMAN OF CORAL SPRINGS FLA WANTS HOMEBASED CARE FOR THE ELDERLY SHE TOLD MRS CLINTON THAT MOST NURSING HOMES INCLUDING THE ONE WHERE HER HUSBAND LIVES ARE PLACES WHERE HELPLESS PEOPLE ARE WAREHOUSED OF COURSE MOST OF THE IDEAS THAT HAVE BEEN SENT IN DON'T STAND A CHANCE OF BEING INCLUDED IN THE WHITE HOUSE PLAN MURRAY KAHN OF TAMARAC FLA WANTS TO ERECT A BATTERY OF NEW VETERANS' HOSPITALS TO HELP SPUR THE ECONOMY THE BUILDING TRADES WOULD BE THE FIRST TO EXPERIENCE A SURGE OF NEW EMPLOYMENT HE WRITES TO VERY DEAR 1ST LADY HILLARY AS PART OF ITS ATTEMPT TO SEEM LESS SECRETIVE THE TASK FORCE HAS SET UP A PUBLIC READING ROOM AT HHS IT IS A DINGY SPACE WITH A COUPLE OF CLUTTERED TABLES AND A FEW OVERSTUFFED BOOKSHELVES AND A BUNCH OF CARDBOARD BOXES MARKED HILLARY RODHAM CLINTON BUT DESPITE THE DISARRAY IT IS ALSO APPARENT THAT EVERY PIECE OF MAIL WAS HOWEVER BRIEFLY GIVEN SOMEONE'S ATTENTION EVERYTHING SENT IN WHETHER FROM A DOCTOR OR A DOORMAN HAS BEEN STAMPED WITH A NUMBER INDICATING THE ORDER IN WHICH IT ARRIVED NEARLY EVERY LETTER ALSO HAS BEEN HIGHLIGHTED IN YELLOW AND MANY CONTAIN HANDWRITTEN NOTATIONS FROM AIDES DIRECTING THE CORRESPONDENCE TO ONE OR ANOTHER OF THE 30PLUS WORKING GROUPS ADVISING THE TASK FORCE MOREOVER EVERY LETTER WILL BE ANSWERED IRA MAGAZINER THE SENIOR WHITE HOUSE OFFICIAL WHO IS OVERSEEING THE DAILY OPERATIONS OF THE TASK FORCE HAS ASKED THE HUNDREDS OF WORKINGGROUP MEMBERS TO COME IN TO SORT THROUGH THE MAIL AND FASHION REPLIES AT THIS POINT MORE THAN HALF THE MAIL HAS BEEN ANSWERED ADMINISTRATION OFFICIALS SAY AND WITHOUT RESORTING TO A STANDARD FORM LETTER EITHER THE GOAL IS TO RESPOND TO THE REST OF THE MAIL BEFORE PRESIDENT CLINTON UNVEILS HIS HEALTH PLAN NEXT MONTH NOT ALL OF THE LETTERS ARE TO MRS CLINTON MARGARET FURLONG DECHANT OF DEERFIELD BEACH FLA SENT HER IDEAS TO LINDA BLOODWORTHTHOMASON THE TELEVISION PRODUCER WHO IS A CLOSE FRIEND OF THE CLINTONS FORGIVE ME FOR TAKING THE LIBERTY OF PRESUMING UPON YOUR FRIENDSHIP WITH HER TO REACH HILLARY CLINTON I COULD THINK OF NO OTHER WAY MS DECHANT EXPLAINS FOR GOOD MEASURE SHE ADDS A POSTSCRIPT PRAISING ONE OF MS BLOODWORTHTHOMASON'S SHOWS WE LOVE EVENING SHADE' SOME LETTERS ARE A TRIFLE DEFENSIVE PLEASE DON'T THROW THIS INTO THE WASTEBASKET BECAUSE IT HAPPENS TO COME FROM AN INSURANCE COMPANY BEGS KR WILLIS OF TIME INSURANCE CO IN MILWAUKEE AND SOME ARE A BIT HAUGHTY I AM UNIQUELY QUALIFIED TO PUT FORTH A NATIONAL HEALTHCARE PROGRAM THAT WOULD CERTAINLY MEET AND EVEN EXCEED ALL OF YOUR KEY OBJECTIVES WRITES HAL KWITEL OF FOREST HILLS NY MANY SEND BOOKS WHOSE RELEVANCE ISN'T ALWAYS APPARENT LIKE THE 1973 TITLE THE AMAZING STORY OF HEALTH CARE IN NEW CHINA LINING THE SHELVES IS EVERYTHING FROM THE POLITICS OF BREAST FEEDING TO SEX IN THE THERAPY HOUR TO SEVERAL BOOKS ON MUSIC IN MEDICINE FOR AN ADMINISTRATION THAT CAME OF AGE DURING WOODSTOCK THERE IS A STUDY OF NATIVE AMERICAN TREATMENTS CALLED THE PEYOTE BOOK JERRY HENDRICKS OF RICHLAND GA DIDN'T FORWARD A BOOK HE WROTE CALLED A WORKING MAN'S THOUGHTS ON CHRISTIANS AND POLITICS BUT HE THINKS IT WOULD BE HELPFUL AND WILL PUT A COPY IN THE MAIL AS SOON AS MRS CLINTON SENDS HIM 995 IF ANY BOOK IS BOUND TO HAVE MADE A MARK ON THE CLINTON CROWD THOUGH IT'S PROBABLY ONE OF THE GUIDES TO ALTERNATIVE MEDICINE FORTY SOMETHING FOREVER 9304290022 930429 URBAN CEASEFIRE A TRUCE IN GANG WARS YIELDS MIXED RESULTS MINNEAPOLIS DISCOVERS THE MURDER RATE FELL AT FIRST BUT SLAYING OF POLICEMAN LATER UNDERCUT SUPPORT CHIEFTAINS IN 22 CITIES MEET BY ALEX KOTLOWITZ STAFF REPORTER OF THE WALL STREET JOURNAL MINNEAPOLIS AFTER LAST YEAR'S RIOTS IN LOS ANGELES LEADERS OF STREET GANGS THERE AND IN SEVERAL OTHER CITIES INCLUDING MINNEAPOLIS CALLED TRUCES THE TRUCES HAVE HELPED REDUCE GANGRELATED SHOOTINGS IN THOSE COMMUNITIES SO IN A MOVE TO ENCOURAGE MORE PEACE TREATIES 120 GANG LEADERS FROM 22 CITIES ARE PLANNING TO MEET TODAY IN KANSAS CITY MO FOR A THREEDAY SUMMIT NOTHING ELSE HAS WORKED DECLARES BENJAMIN F CHAVIS JR THE NEW HEAD OF THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE IF IN FACT IT'S THE GANG LEADERS THEMSELVES WHO CAN STOP THE VIOLENCE WHAT DO WE HAVE TO LOSE BUT SOME PEOPLE IN MINNEAPOLIS DOUBT THAT MUCH IS TO BE GAINED IN THE WAKE OF LAST SPRING'S CEASEFIRE THE PACE OF KILLINGS INITIALLY DROPPED HERE FROM THE 1991 RECORD OF 63 GANG LEADERS SQUELCHED A THREATENED RIOT AND AIDED BY LOCAL FOUNDATION MONEY THEY SET UP UNITED FOR PEACE A NOTFORPROFIT ORGANIZATION TO HELP MEMBERS FIND JOBS BUT THEN A POLICEMAN WAS KILLED AND FOUR MEMBERS OF ONE OF THE PEACEKEEPING GANGS HAVE BEEN INDICTED SUDDENLY CIVIC LEADERS ARE WONDERING SHOULD THEY CONTINUE TO BACK AND IN SOME CASES FINANCE THE GANGS AND THE TRUCE ARE THESE PEOPLE HUSTLERS OR LEGITIMATE LOCAL LEADERS AS THE DRAMA UNFOLDED HERE SO DID THE TENUOUS AND AMBIGUOUS NATURE OF SUCH CEASEFIRES GANG TRUCES ARE ALWAYS A MIXED BAG SAYS IRVING SPERGEL A PROFESSOR AND GANG SPECIALIST AT THE UNIVERSITY OF CHICAGO IT'S GOOD TO SAVE LIVES BUT IF IT'S GOING TO STRENGTHEN A GANG ORGANIZATION I WOULDN'T BE A PART OF IT YET THE TRUCE HAS OFFERED HOPE THAT MINNEAPOLIS COULD FIND A WAY TO DEAL WITH A GROWING PROBLEM THIS CITY OF 369000 HAS AN ESTIMATED 4400 GANG MEMBERS FOUR TIMES THE NUMBER FIVE YEARS AGO AND EACH WITH AN AVERAGE OF SEVEN ARRESTS MINNEAPOLIS HAS HAD SOME GANG ACTIVITY SINCE THE EARLY 1980S WHEN CHICAGO'S TWO MAJOR GANGS THE VICE LORDS AND DISCIPLES MOVED IN THE WEST COAST'S BLOODS AND CRIPS FOLLOWED NOT UNTIL 1985 HOWEVER DID MINNEAPOLIS REALIZE WHAT LAY AHEAD A DISCIPLE SHOT A 16YEAROLD GIRL TWICE IN THE HEAD IN MARTIN LUTHER KING PARK ON THE CITY'S SOUTH SIDE THE GANG LEADERS THOUGHT SHE HAD IMPLICATED THEM IN A GUNSTORE BURGLARY AFTER THAT THE VIOLENCE ESCALATED WITH TURF BATTLES AND DRIVEBY SHOOTINGS YOUTH WORKERS HERE TRIED TO LURE KIDS AWAY FROM THE URBAN WARFARE BUT WITHOUT MUCH SUCCESS SO SOME COMMUNITY LEADERS HIT ON THE IDEA OF IN ESSENCE USING THE GANGS AGAINST THEMSELVES OUTREACH WORKERS AT CITY INC A RESPECTED INNERCITY SOCIALSERVICES AGENCY BELIEVED THAT THE RIGHT PERSON SOMEONE WITH STRONG TIES TO THE GANGS AND COMMITTED TO PEACE COULD MAKE A DIFFERENCE ALONG CAME SHARIF WILLIS THE VICE LORDS' 41YEAROLD CHIEF THE LANKY MR WILLIS WHO GREW UP IN CHICAGO FIRST BECAME INVOLVED WITH THE VICE LORDS AT AGE 13 LIKE OTHER GANG BANGERS HE REGULARLY USED DRUGS AND GUNS HE MOVED TO MINNEAPOLIS IN 1982 AND QUICKLY GOT INTO TROUBLE KILLING A MAN OVER A DICE GAME MR WILLIS SAYS HE MATURED DURING MORE THAN SIX YEARS AT MINNESOTA'S STILLWATER PRISON WHERE HE ORGANIZED A BLACK CULTURAL GROUP AND HELPED DISCOURAGE INTRAGANG VIOLENCE I SAW THE RESPECT HE HAD SAYS SPIKE MOSS OF CITY INC I THOUGHT I COULD USE HIM UPON HIS RELEASE IN DECEMBER 1991 MR WILLIS CONTACTED HIS OLD ASSOCIATES HE SAYS HE WANTED TO DISPEL THE NOTION THAT GANGS WERE ALL BAD BUT HE FOUND THE STREETS EVEN MORE DANGEROUS THAN BEFORE INDEED HE WORE A BULLETPROOF VEST HIS FIRST FEW MONTHS OUT BECAUSE OF RUMORS THAT A RIVAL WAS OUT TO GET HIM THE IDEA THAT GANGS COULD BE SWITCHED TO DOING GOOD ISN'T NEW IN THE LATE 1960S CHICAGO GANGS WERE COURTED BY BUSINESS AND COMMUNITY LEADERS AND FEDERAL AGENCIES HOPING TO GAIN INFLUENCE IN THE GHETTO MR WILLIS REMEMBERS W CLEMENT STONE THE INSURANCE EXECUTIVE AND SELFHELP ADVOCATE LECTURING HIM AND OTHER TROUBLED YOUTHS ONE GANG THE BLACKSTONE RANGERS LATER CALLED THE EL RUKNS RECEIVED 300000 IN FEDERAL JOBTRAINING GRANTS ITS LEADER JEFF FORT WAS INVITED TO RICHARD NIXON'S INAUGURATION HOWEVER GANG MEMBERS SOON WERE BICKERING OVER MONEY AND TURNED ON EACH OTHER MR FORT WHO BECAME A PROTOTYPE GANGSTER WAS SENTENCED TO FIVE YEARS FOR CONSPIRING TO MISAPPLY FEDERAL FUNDS AND LATER FOR DRUG TRAFFICKING LAST MAY MR WILLIS CAJOLED LEADERS OF THE FOUR BIG GANGS IN MINNEAPOLIS TO SIGN A PEACE TREATY AGREEING TO REDUCE THE VIOLENCE AND SEARCH FOR WAYS TO CREATE JOBS THROUGH UNITED FOR PEACE THREE LOCAL FOUNDATIONS PAID MR WILLIS'S SALARY AND FINANCED THE PURCHASE OF FIVE CELLULAR PHONES 15 WALKIETALKIES AND 54 BEEPERS SO THAT GANG LEADERS AND THEIR LIEUTENANTS COULD BE REACHED IF TROUBLE ERUPTED ON THE STREETS THE RED CROSS TAUGHT THEM RUDIMENTARY FIRST AID IF SOMETHING HAPPENS IN THE CITY WE CAN NETWORK AND FIND OUT WHAT'S GOING ON SAYS MR WILLIS NOW RARELY WITHOUT HIS CELLULAR PHONE IN A COAT POCKET AND TWO BEEPERS HANGING FROM HIS BELT THE FOUNDATIONS WERE ASSURED THAT THE EQUIPMENT WOULDN'T BE USED FOR DRUG DEALING UNITED FOR PEACE PROVED ITS METTLE LAST MAY 7 THAT EVENING ON THE PREDOMINATELY BLACK NORTH SIDE A 66YEAROLD MAN ALLEGEDLY SHOT AND WOUNDED A 14YEAROLD WHO HAD BEEN TRESPASSING ON HIS LAWN RUMORS THAT A COP HAD SHOT THE YOUTH SPREAD QUICKLY WITHIN MINUTES NEARLY 600 PEOPLE GATHERED ON THE SURROUNDING STREETS PEOPLE HURLED BOTTLES AND ROCKS AT THE POLICE SOMEONE THREW A MOLOTOV COCKTAIL AT THE OLDER MAN'S HOUSE ENGULFING THE STRUCTURE IN FLAMES THE POLICE OUTNUMBERED RETREATED TO A NEARBY PRECINCT STATION IN AN UNUSUAL MOVE DEPUTY POLICE CHIEF DAVID DOBROTKA WHO ALREADY HAD ESTABLISHED RELATIONS WITH UNITED FOR PEACE CALLED THE GROUP FOR HELP FEARING THAT THE ENTIRE BLOCK WOULD SOON BE ABLAZE HE NEEDED TO GET FIRETRUCKS SAFELY THROUGH THE CROWD HE REACHED MR WILLIS AND OTHER GANG MEMBERS VIA THEIR BEEPERS THEY MET AT THE PRECINCT STATION AND AGREED THAT THE POLICE SHOULDN'T GO BACK IN MR WILLIS AND HIS COHORTS THEN WADED INTO THE CROWD AND PLEADED WITH PEOPLE TO DISPERSE THEY DID THE FIRETRUCKS PASSED THROUGH WITHOUT INCIDENT IN MANY SEGMENTS OF THE COMMUNITY MR DOBROTKA SAYS THE COOPERATION BETWEEN THE POLICE AND THE GANGS REPRESENTED SOME HOPE THERE WAS AN ATTITUDE THAT WE'RE IN THIS TOGETHER THAT SUMMER UNITED FOR PEACE COOLED DOWN OTHER HOT SPOTS THEY REPRIMANDED GANG MEMBERS WHO HAD SCRAWLED INTIMIDATING GRAFFITI ON THE ENTRYWAY OF A DRUGREHABILITATION CENTER THEY ESCORTED SENIOR CITIZENS TO BANKS TO CASH SOCIAL SECURITY CHECKS THEY PREVENTED DISTURBANCES AT NORTH MEMORIAL MEDICAL CENTER WHENEVER A SHOOTING VICTIM ARRIVED BY THE END OF THE SUMMER UNITED FOR PEACE HAD BEEN PRAISED BY THREE MAYORAL CANDIDATES AND HIGHRANKING POLICE OFFICIALS GOV ARNE CARLSON NOMINATED MR MOSS OF CITY INC AND DEPUTY CHIEF DOBROTKA FOR THE ALBERT SCHWEITZER HUMANITARIAN AWARD UNITED FOR PEACE MEMBERS WERE HIRED TO WORK SECURITY AT SOME CONSTRUCTION SITES AND THE LOCAL PUBLIC TELEVISION STATION GAVE THEM A WEEKLY TALK SHOW THERE WERE SOME GREAT THINGS IN THE WORKS SAYS PETER HAYDEN THE DIRECTOR OF TURNING POINT A DRUG AND ALCOHOL REHAB CENTER WHO THOUGH SKEPTICAL AT FIRST HAD COME TO ADMIRE THE GROUP'S EFFORTS THEN IN THE EARLY MORNING OF SEPT 25 TWO MEN WALKED INTO THE PIZZA SHACK RESTAURANT AND SHOT POLICE OFFICER JERRY HAAF FOUR TIMES IN THE BACK THE TWO MEN AND TWO ALLEGED ACCOMPLICES ARRESTED FOR THE KILLING ARE ALL SAID TO BE MEMBERS OF THE VICE LORDS ONE IS A NEPHEW OF MR WILLIS POLICE SPECULATE THAT THE GANGS WANTED TO KILL A COP PERHAPS AS PART OF A GANG INITIATION OR IN RETALIATION FOR WHAT SOME BLACKS CONSIDERED UNWARRANTED ROUGH TREATMENT OF A BLIND MAN BY TRANSIT AND CITY POLICE THE PREVIOUS DAY MR HAAF A 53YEAROLD IN THE TRAFFIC DIVISION ONLY A FEW MONTHS AWAY FROM RETIREMENT HAPPENED TO BE THE ONLY OFFICER AT THE RESTAURANT A KNOWN POLICE HANGOUT WITHIN DAYS THE POLICE SEVERED TIES WITH UNITED FOR PEACE AND HAVE SINCE INSINUATED THAT MR WILLIS WAS SOMEHOW CONNECTED TO THE MURDER MR WILLIS HOWEVER HASN'T BEEN CHARGED WITH ANY CRIME AND DENIES INVOLVEMENT THE UNIVERSITY OF CHICAGO'S MR SPERGEL SAYS OLDER LEADERS SUCH AS MR WILLIS OFTEN CAN'T CONTROL YOUNGER MEMBERS THERE'S A LOT OF FACTIONALISM IN EVEN THE MOST ORGANIZED OF GANGS HE ADDS THAT LACK OF CONTROL HE ADDS IS THE REASON TRUCES OFTEN COLLAPSE IN THE FOLLOWING MONTHS UNITED FOR PEACE BECAME EMBROILED IN ADDITIONAL CONTROVERSY JEROME COPELAND A UNITED FOR PEACE VICE PRESIDENT AND HEAD OF THE DISCIPLES WAS ARRESTED ON A WEAPONS CHARGE HE IS AWAITING TRIAL THE GROUP WAS ALSO ACCUSED OF GRANDSTANDING WHEN MWATI MCKENZIE ONE OF THE SUSPECTS IN MR HAAF'S MURDER WANTED TO TURN HIMSELF IN LAST NOVEMBER HE CONTACTED UNITED FOR PEACE WITH TELEVISION CAMERAS IN TOW UNITED FOR PEACE MEMBERS FLEW TO CHICAGO IN A PLANE CHARTERED BY KARETV A LOCAL NBC AFFILIATE THERE THEY MET MR MCKENZIE AND BROUGHT HIM BACK TO MINNEAPOLIS AGAIN IN JANUARY UNITED FOR PEACE TURNED OVER ANOTHER SUSPECT TO THE POLICE THEY DROVE THE ACCUSED AN ALLEGED SERIAL RAPIST TO THE STEPS OF CITY HALL WHERE MORE THAN TWO DOZEN REPORTERS AND PHOTOGRAPHERS GREETED THEM THE NEXT DAY A PHOTO OF MR WILLIS TALKING INTO HIS CELLULAR PHONE GRACED THE FRONT PAGE OF A LOCAL NEWSPAPER THEY CREATED A CIRCUS ATMOSPHERE SAYS STEVE CRAMER A CITY COUNCILMAN WHO BELIEVES THAT THE GROUP SOUGHT TO EMBARRASS THE POLICE I JUST FIND IT INCOMPREHENSIBLE THAT THIS GROUP CONTINUES TO EXIST SOME OF UNITED FOR PEACE'S INITIAL SUPPORTERS HAVE BACKED OFF THE GOVERNOR WITHDREW THE ALBERT SCHWEITZER NOMINATION AFTER THE HAAF KILLING CITING BAD TIMING MAYOR DONALD FRAZER HAS SAID LITTLE PREFERRING TO DEFER TO LAWENFORCEMENT OFFICIALS TO THE EXTENT THEY'RE ABLE TO REDUCE VIOLENCE AND PROVIDE ECONOMIC BENEFITS I WISH THEM WELL DEPUTY CHIEF DOBROTKA SAYS BUT THAT GETS BACK TO THE QUESTION HOW WILLING ARE THEY TO SCORN THE CRIMINAL ELEMENT OF GANGS NEVERTHELESS MANY CITY LEADERS STILL COURT MR WILLIS A LOCAL MINISTER THOMAS VAN LEER RECENTLY VISITED HIM AND ASKED TO ADDRESS A COALITION OF GANG CHIEFS I THINK I HAVE A MESSAGE THAT'S IMPORTANT TO HEAR MR VAN LEER TOLD MR WILLIS BUT THE GANG LEADER WAS DISTRACTED ANTICIPATING A VISIT FROM A LOCAL REPORTER FOR AN ARTICLE ON ANTICRIME LEGISLATION WHAT'S MORE MR WILLIS'S VIBRATING BEEPER WASN'T VIBRATING AND THE BATTERY IN HIS CELLULAR PHONE WAS GROWING WEAK SHOOT NOTHING'S WORKING HE MUTTERED AS MR VAN LEER CONTINUED HIS PITCH MR WILLIS KEEPS BUSY EVEN THOUGH UNITED FOR PEACE IS MAINTAINING A LOW PROFILE WHILE TRYING TO REGROUP HE CONTINUES TO LEAD WEEKLY MEETINGS OF LOCAL GANG LEADERS AT ONE RECENT GATHERING AT A YOUTH CENTER THE YELLING AND CUSSING GOT SO LOUD THAT A WOMAN WALKING BY CALLED THEM AS A BUNCH OF CRAZY FOLKS BUT SAYS COREY BIRD A BLOODS LEADER IT'S REAL HEALTHY THAT WE'RE ABLE TO TALK TWO YEARS AGO IF YOU WITNESSED THIS ARGUMENT YOU'D PROBABLY GET HIT BY A BULLET MR WILLIS NOW TALKS MOSTLY ABOUT JOBS AND ECONOMIC DEVELOPMENT UNITED FOR PEACE WANTS TO START A BUSINESS PERHAPS A SPORTINGGEAR STORE OR CLOTHING LINE THE GROUP HAS APPEALED TO FOUNDATIONS AND THE BUSINESS COMMUNITY FOR ASSISTANCE IF YOU'RE IN THE BUSINESS OF TRYING TO BUILD COMMUNITY YOU CAN'T TURN DOWN THESE KINDS OF OPPORTUNITIES SAYS MICHAEL O'KEEFE EXECUTIVE VICE PRESIDENT OF THE MCKNIGHT FOUNDATION WHICH ALONG WITH THE GENERAL MILLS FOUNDATION CONTINUES TO SUPPORT THE GROUP THE GROUP HAS ALSO RECEIVED 70000 OF STATE FUNDS FOR ITS AIDSEDUCATION PROJECT BUT MUCH OF MR WILLIS'S TIME IS SPENT HELPING ORGANIZE THIS WEEK'S NATIONAL GANG SUMMIT HE AND GANG LEADERS FROM OTHER CITIES HOPE TO FIGURE OUT HOW TO MAINTAIN THE TRUCES AND CREATE JOBS KANSAS CITY'S MAYOR PLANS A BREAKFAST FOR THE GROUP MR WILLIS HAS ALSO TAKEN UNITED FOR PEACE MEMBERS TO CHICAGO AND LOS ANGELES TO TALK TO GANG MEMBERS THERE IN FACT HE HAS BEEN AWAY FROM MINNEAPOLIS SO MUCH THAT SOME MEMBERS AS WELL AS FOUNDATION HEADS HAVE SUGGESTED THAT HE ISN'T TENDING TO HIS OWN CITY THE GREATEST OBSTACLE TO THE GROUP'S SUCCESS THOUGH MAY BE ITS DEEP RIFT WITH THE POLICE SINCE THE HAAF MURDER THE DEPARTMENT HAS MORE THAN TRIPLED THE SIZE OF ITS GANG UNIT AND HAS ENDORSED MEASURES TO COORDINATE THE GATHERING OF GANG INTELLIGENCE AMONG LOCAL LAWENFORCEMENT AGENCIES COPS ALSO CONTINUE TO ASSOCIATE MR WILLIS WITH THE MURDER TARNISHING HIS REPUTATION AND THAT OF UNITED FOR PEACE AND MR WILLIS WHO SAYS UNITED FOR PEACE SHOULDN'T BE CONDEMNED BECAUSE OF THE ACTIONS OF A FEW HASN'T SOOTHED MATTERS WITH HIS SOMETIMESINCENDIARY RHETORIC HE ACCUSES THE POLICE OF HAVING SET UP A COLLEAGUE ARRESTED FOR PURCHASING A GUN FROM AN UNDERCOVER AGENT AND AT ONE POINT IN AN INTERVIEW HE REFERS TO THE POLICE AS GESTAPO ONE OF THE MAIN TOPICS AT THIS WEEK'S SUMMIT WILL BE WHAT THE GANGS CONTEND IS MISTREATMENT BY THE POLICE MR WILLIS HAS WON SUPPORT THOUGH BOTH WITHIN THE BLACK COMMUNITY AND WITHOUT UNITED FOR PEACE WILL PROBABLY BE INCLUDED IN BUSINESS GROUPS' PLANS FOR CREATING INNERCITY JOBS MY BET IS THAT SHARIF IS TIRED OF HIS OLD WAYS AND WANTS TO SEE THIS THING WORK SAYS PETER A HEEGAARD A NORWEST CORP MONEY MANAGER I'D BE WILLING TO WORK WITH HIM MR WILLIS'S BIGGEST TEST MAY WELL BE IN THE NEIGHBORHOODS MOST AFFECTED BY THE VIOLENCE STUDENTS INTERVIEWED AT NORTH HIGH SCHOOL IN THE PREDOMINATELY BLACK NORTH SIDE UNANIMOUSLY PRAISE HIS EFFORTS THE BROTHER'S TRYING TO STOP THE VIOLENCE SAYS ADAM MITCHELL A SENIOR AT LEAST HE'S TRYING TO DO SOMETHING 9304290021 930429 TECHNOLOGY & HEALTH MICROSOFT SETTLES SUIT ACCUSING EXLICENSEE DISTRIBUTORS OF PIRACY REDMOND WASH MICROSOFT CORP SAID IT HAD SETTLED A SOFTWARE PIRACY LAWSUIT AGAINST FORMER LICENSEE ZNIX CO ITS PRESIDENT AND THREE DISTRIBUTORS FOR UNDISCLOSED TERMS JIMMY CHEN PRESIDENT OF ZNIX AND PRIVATELY HELD ZNIX DISTRIBUTORS JACTECH CORP MAX GROUP CORP AND PC MAN INC HAD ALL BEEN NAMED IN THE LAWSUIT IN US DISTRICT COURT IN LOS ANGELES THE LAWSUIT ORIGINALLY WAS FILED BY REDMOND WASHBASED MICROSOFT LAST JUNE AGAINST ZNIX A TINY CLOSELY HELD SOFTWARE MANUFACTURER IN POMONA CALIF FOR COPYRIGHT AND TRADEMARK INFRINGEMENT AND BREACH OF CONTRACT RELATED TO ALLEGED ILLEGAL DISTRIBUTION OF THE MICROSOFT WINDOWS OPERATION SYSTEM VERSION 31 ZNIX CONTENDING IT HAD A BONA FIDE AGREEMENT TO SELL WINDOWS HAD FILED ANTITRUST COUNTERCLAIMS AGAINST MICROSOFT THE WORLD'S LARGEST SUPPLIER OF PERSONALCOMPUTER SOFTWARE THOSE CLAIMS ALSO WERE SETTLED THOMAS T CHAN AN ATTORNEY FOR ZNIX SAID THE SUIT BY MICROSOFT WAS PART OF A CAMPAIGN TO BULLY SMALL LICENSEES OUT OF THEIR CONTRACTS SO MICROSOFT COULD SELL WINDOWS TO CUSTOMERS DIRECTLY MICROSOFT SAID THE SETTLEMENT REFLECTS ITS CONTENTION THAT THE ZNIX ANTITRUST CLAIMS HAD NO MERIT JIM LOWE CORPORATE ATTORNEY FOR MICROSOFT ALSO SAID THE ZNIX SETTLEMENT VINDICATES OUR INFRINGEMENT CLAIMS AS WELL AS MICROSOFT'S TERMINATION OF ZNIX'S LICENSE AGREEMENT LAST YEAR MR CHAN A PARTNER WITH THE LOS ANGELES FIRM OF CHAN AND JODZIEWICZ VIGOROUSLY DENIED THAT MICROSOFT HAD VINDICATED ANYTHING MR CHAN NOTED THAT UNDER TERMS OF THE SETTLEMENT DETAILS WERE NOT BE DISCUSSED PUBLICLY HE ADDED THAT NEITHER SIDE ADMITTED WRONGDOING MR LOWE SAID MICROSOFT ADHERED TO THE CONFIDENTIALITY PROVISION IN THE SETTLEMENT 9304290020 930429 LAW PARKER IS CONVICTED IN LEASEFRAUD SUIT INVOLVING FAILED S&L LOS ANGELES A FEDERAL COURT JURY CONVICTED BUSINESSMAN MICHAEL E PARKER OF RACKETEERING MONEY LAUNDERING TAX EVASION BANK FRAUD AND OTHER FEDERAL CRIMES IN CONNECTION WITH SELLING 166 MILLION IN OVERVALUED EQUIPMENT LEASES TO COLUMBIA SAVINGS & LOAN ASSOCIATION MR PARKER ONCE A HIGHPROFILE SUPPORTER OF REPUBLICAN CAUSES IN SOUTHERN CALIFORNIA WAS PRESIDENT OF PARKER NORTH AMERICAN CORP COSTA MESA WHICH ARRANGED FOR BANKS AND THRIFTS TO LEASE COMPUTERS AND AUTOMATED TELLER MACHINES AND SOLICITED MONEY TO PURCHASE THE MACHINES FROM INVESTORS WHO GOT TAX BREAKS FOR OWNING THE EQUIPMENT BUT THE LEASE PACKAGES SOLD TO COLUMBIA WERE BASED ON EQUIPMENT THAT DID NOT EXIST AND ON BOGUS LEASES IN WHICH PNA FRAUDULENTLY INCREASED THE VALUE OF THE EQUIPMENT AND THE MONTHLY LEASE PAYMENTS SAID JAMES ASPERGER THE LEAD PROSECUTOR IN THE CASE MR PARKER DIVERTED MORE THAN 11 MILLION OF THE PROCEEDS TO HIMSELF AND HIS ASSOCIATES THE JURY FOUND MR PARKER 45 YEARS OLD RESIGNED IN 1990 FROM PARKER NORTH AMERICAN WHICH FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION MR ASPERGER SAID MR PARKER'S SCHEME WAS ONE OF THE BIGGEST FRAUDS EVER BY AN OUTSIDER AGAINST A SAVINGS AND LOAN ANOTHER PROSECUTOR MARK HOLSCHER ESTIMATED COLUMBIA PAID PARKER NORTH AMERICAN AT LEAST 31 MILLION BETWEEN 1983 AND 1987 AND SAID THE THRIFT IS LIABLE FOR ANOTHER 16 MILLION IN TAXES AND PENALTIES BECAUSE IT DIDN'T OWN THE EQUIPMENT COLUMBIA OF BEVERLY HILLS CALIF WAS SEIZED BY FEDERAL REGULATORS IN 1991 THE JURY ALSO FOUND THAT MR PARKER PAID 15 MILLION IN KICKBACKS TO AN OFFICER OF COLUMBIA TO HELP INDUCE THE THRIFT TO BUY THE LEASE PACKAGES JUDGE ROBERT TAKASUGI ISSUED AN 118 MILLION CRIMINAL FORFEITURE JUDGMENT AGAINST MR PARKER WHO WAS CONVICTED ON ALL BUT THREE OF 39 COUNTS IN THE INDICTMENT AGAINST HIM MR PARKER'S LAWYER THOMAS HOLLIDAY OF LOS ANGELES SAID WHILE WE WERE PLEASED THAT THE JURY ACQUITTED MR PARKER ON SOME COUNTS WE WERE VERY DISAPPPOINTED THAT IT CONVICTED HIM ON OTHERS 9304290019 930429 ABREAST OF THE MARKET STOCKS END MIXED AS KODAK SELLERS OFFSET BUYING IN OIL AUTO ISSUES BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A TUGOFWAR BETWEEN BUYERS IN OIL AND AUTOMOBILE STOCKS AND SELLERS IN EASTMAN KODAK ENDED IN A DRAW LEAVING THE STOCK MARKET MIXED UPBEAT COMMENTS FROM SECURITIES ANALYSTS LIFTED CHEVRON 3 1/8 TO 85 AND A SURPRISINGLY STRONG EARNINGS REPORT BUOYED FORD MOTOR 1 7/8 TO 54 1/2 THE GAINS SWEPT OTHER STOCKS IN THOSE GROUPS HIGHER TOO TRADERS SAID BUT KODAK PLUNGED 5 1/8 OR 98 TO 47 1/4 AFTER THE ROCHESTER NY PHOTOGRAPHY PRODUCTS COMPANY ANNOUNCED THE RESIGNATION OF CHRISTOPHER STEFFEN THE CHIEF FINANCIAL OFFICER IT HAD HIRED LESS THAN THREE MONTHS AGO TO HELP LEAD ITS TURNAROUND THE SLUMP IN KODAK ALONE SLICED MORE THAN 11 POINTS OFF THE DOW JONES INDUSTRIAL AVERAGE LEAVING IT WITH A LOSS OF 243 OR 007 AT 341350 BROADER MARKET AVERAGES BARELY MOVED WHILE BIG BOARD ADVANCERS LED DECLINERS 987 TO 917 NYSE VOLUME TOTALED 266900000 SHARES COMPARED WITH 283730000 SHARES TUESDAY THE STANDARD & POOR'S 500 STOCK INDEX ROSE 001 TO 43802 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FELL 003 OR 001 TO 24190 THE DOW JONES EQUITY MARKET INDEX INCREASED 029 OR 007 TO 41532 THE MILD CLOSING READINGS THOUGH MASK SOME WILD SWINGS IN PRICES INTRADAY THE DOW INDUSTRIALS INITIALLY GAINED MORE THAN EIGHT POINTS WHILE BIG BOARD TRADING IN KODAK A COMPONENT STOCK WAS DELAYED BY THE HUGE FLOW OF ORDERS THAT FOLLOWED THE RELEASE OF ITS NEWS LATER THE AVERAGE TUMBLED TO AS MUCH AS A 20POINT DEFICIT PARTLY ON WHAT TRADERS SAID WAS COMPUTERGUIDED PROGRAM SELLING THOMAS GALLAGHER MANAGING DIRECTOR OF CAPITAL COMMITMENT AT OPPENHEIMER & CO SAID BIG SWINGS LIKE THOSE SEEN TODAY MIGHT BE A WARNING SIGN IT'S VERY VOLATILE AND THAT USUALLY PORTENDS SOMETHING NEGATIVE HE SAID BUT DENNIS JARRETT MARKET STRATEGIST AT KIDDER PEABODY & CO FOUND ENCOURAGMENT IN THE MARKET'S PERFORMANCE I THINK THE KEY IS THAT WE TRIED TO STOP THE DOWNWARD MOMENTUM MR JARRETT SAID TUESDAY WAS THE MARKET'S FIRST UP DAY IN SEVEN SESSIONS AND HE SAID IT WAS A POSITIVE SIGN THAT PRICES DIDN'T RESUME THEIR RETREAT YESTERDAY KODAK MEANWHILE WASN'T THE ONLY DISASTER TAMBRANDS TUMBLED 5 7/8 OR 115 TO 45 1/4 ALTHOUGH THE WHITE PLAINS NY PERSONAL CARE PRODUCT COMPANY'S FIRSTQUARTER EARNINGS RELEASED LATE TUESDAY MET EXPECTATIONS ANALYSTS SAID THEY WERE CONCERNED BY A WEAKERTHANEXPECTED READING ON SALES FOR THE PERIOD GOLDMAN SACHS & CO CUT A RATING ON THE STOCK TO MARKET UNDERPERFORMER FROM MARKET PERFORMER SEVERAL ANALYSTS THOUGH RAISED INVESTMENT RATINGS ON CHEVRON FOLLOWING THE SAN FRANCISCO OIL AND GAS COMPANY'S STRONGERTHANEXPECTED FIRSTQUARTER EARNINGS SMITH BARNEY HARRIS UPHAM & CO'S MICHAEL YOUNG FOR INSTANCE NOW RATES IT BUY UP FROM HOLD AMONG OTHER PETROLEUMRELATED STOCKS MOBIL JUMPED 1 3/8 TO 69 1/8 AMOCO INCREASED 1/2 TO 54 7/8 UNOCAL ADDED 1 1/4 TO 31 1/8 ATLANTIC RICHFIELD CLIMBED 1 3/8 TO 124 1/2 AND TEXACO ROSE 1 7/8 TO 64 5/8 OIL SERVICE SHARES WERE STRONG HALLIBURTON ROSE 2 1/8 TO 40 7/8 SCHLUMBERGER INCREASED 1 5/8 TO 64 1/8 FORD MOTOR POSTED FIRSTQUARTER EARNINGS OF 102 A SHARE REVERSING A YEARAGO LOSS THAT INCLUDED ACCOUNTINGRELATED CHARGES AND TOPPING EXPECTATIONS ANALYSTS NOTED THAT FORD'S EUROPEAN AUTOMOBILE OPERATIONS HAD A STRONG TURNAROUND GENERAL MOTORS JUMPED 2 TO 42 3/8 COMBINED EARNINGS OF GM'S NONAUTOMOTIVE SUBSIDIARIES FELL 43 IN THE FIRST QUARTER TO 5938 MILLION OF THE THREE GM UNITS GENERAL MOTORS ACCEPTANCE CORP GM HUGHES ELECTRONICS AND ELECTRONIC DATA SYSTEMS CORP ONLY GMAC REPORTED A DECLINE IN PROFIT GM WILL REPORT ITS OVERALL FIRSTQUARTER RESULTS TODAY AND ANALYSTS EXPECT A SHARP MPROVEMENT OVER YEARAGO RESULTS GM'S CLASS H STOCK WHICH REPRESENTS THE OPERATIONS OF HUGHES EASED 1/8 TO 26 1/2 GM'S CLASS E SHARES WHICH REPRESENT EDS SLIPPED 1/4 TO 32 CHRYSLER MEANWHILE JUMPED 1 5/8 TO 41 ROYAL CARIBBEAN CRUISES ADDED 1/4 TO 18 1/4 IN HEAVY TRADING THE COMPANY SOLD 10 MILLION COMMON SHARES AT 18 EACH IN AN INITIAL PUBLIC OFFERING LATE TUESDAY SIGNET BANKING JUMPED 2 TO 56 1/8 AFTER THE RICHMOND VA BANK HOLDING COMPANY INCREASED ITS QUARTERLY DIVIDEND TO 40 CENTS FROM 30 CENTS IT WILL MAKE ITS FIRST PAYOUT AT THE NEW RATE ON MAY 26 TO SHAREHOLDERS OF RECORD MAY 10 AIRLINES STOCKS SKIDDED UAL PARENT OF UNITED AIRLINES LOST 1 TO 145 1/2 DELTA AIR LINES DROPPED 1 1/8 TO 57 1/4 AND AMR THE PARENT OF AMERICAN AIRLINES LOST 1 TO 68 1/4 NORTHWEST AIRLINES EXTENDED ITS EARLY SUMMER FAREDISCOUNT PROMOTION GOLD PRODUCERS GAINED AS THE PRICE OF THAT METAL ADVANCED HECLA MINING ADDED 1 1/4 TO 13 1/8 HOMESTAKE MINING INCREASED 3/8 TO 16 1/4 AND NEWMONT MINING ROSE 1/2 TO 47 1/8 NEWMONT REPORTED INCOME FROM OPERATIONS OF 13 CENTS A SHARE COMPARED WITH 65 CENTS A SHARE A YEAR EARLIER 9304290018 930429 POLITICS & POLICY BID TO GIVE CLINTON A LINEITEM VETO PREVAILS IN HOUSE BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A WHITE HOUSEBACKED INITIATIVE TO GIVE PRESIDENT CLINTON A MODIFIED LINEITEM VETO NARROWLY SURVIVED A HOUSE PROCEDURAL VOTE IN WHAT PROVED AN OLDFASHIONED ARMTWISTING TEST OF STRENGTH FOR SPEAKER THOMAS FOLEY THE 212208 ROLL CALL CLEARS THE WAY FOR FINAL ACTION ON THE BILL TODAY AND THOUGH REPUBLICANS WILL BE ABLE TO OFFER A COMPETING STRICTER VETO ALTERNATIVE THE LEADERSHIP IS INCREASINGLY CONFIDENT IT WILL PREVAIL DESPITE THE PRESIDENT'S CLEAR STAKE IN THE OUTCOME THE FIGHT WAS FOREMOST A PERSONAL VICTORY FOR SPEAKER FOLEY IN ALLIANCE WITH REP CHARLES STENHOLM OF TEXAS A LEADER OF THE DEMOCRATS' SOUTHERN CONSERVATIVE WING AND CHIEF SPONSOR OF THE BILL MATCHED AGAINST THE TWO MEN WHOSE TIES RUN BACK TO THE HOUSE AGRICULTURE COMMITTEE WAS AN UNLIKELY ALLIANCE OF REPUBLICAN CONSERVATIVES AND MEMBERS OF THE LIBERAL BLACK CAUCUS WHO FOUND COMMON CAUSE IN OPPOSING PROCEDURES LIMITING AMENDMENTS ON THE MEASURE AT THE END OF THE STANDARD 15MINUTE ROLLCALL PERIOD OPPONENTS HAD A NARROW MAJORITY BUT THE LEADERSHIP HELD THE MACHINES OPEN FOR NEARLY 28 MINUTES WHILE SWITCHING ENOUGH VOTES TO PREVAIL FACED WITH THE PROSPECT OF DEFEAT MR FOLEY ABANDONED HIS OFTEN SOMNOLENT STYLE AND REDFACED UNDER HIS WHITE HAIR HE STALKED THE FLOOR COLLARING RELUCTANT DEMOCRATS UNTIL HE FOUND THE VOTES HE NEEDED IN THE HAWAII DELEGATION THOSE WEREN'T JUST MAYBE VOTES THOSE WERE TOUGH TO SWITCH SAID RULES COMMITTEE CHAIRMAN JOSEPH MOAKLEY AFTER THE SETBACKS OF RECENT DAYS DEMOCRATS SEEMED TO DELIGHT IN SEEING THE SOMETIMES DISTANT SPEAKER MOVE AMONG THEM ON THE CROWDED FLOOR EVEN HE SEEMED TO TAKE ALMOST BOYISH PRIDE IN THE TRIUMPH AND LEAVING THE FLOOR HE MADE A MUSCLE WITH HIS ARM TO SIGNAL HIS PLEASURE THE BILL ITSELF STILL FACES OPPOSITION FROM THE APPROPRIATIONS COMMITTEE LEADERSHIP IN THE HOUSE AND SENATE BUT THERE HAS BEEN GROWING PRESSURE IN BOTH CHAMBERS TO GIVE THE ADMINISTRATION GREATER POWER TO CUT INDIVIDUAL ITEMS FROM SPENDING LEGISLATION THE DEMOCRATIC PROPOSAL WOULDN'T GIVE THE PRESIDENT AN OUTRIGHT VETO BUT SETS OUT AN EXPEDITED PROCEDURE THAT PROMISES ACTION ON ANY RESCISSIONS PROPOSED BY THE ADMINISTRATION THIS PRESERVES THE CURRENT PRINCIPLE THAT ANY PROPOSED CUTS WILL BE DECIDED BY A STRAIGHT MAJORITY VOTE BUT THE PROPOSED CHANGES WILL NONETHELESS ADD TO THE PRESIDENT'S LEVERAGE REPUBLICANS WHO WILL OFFER THEIR OWN VETO ALTERNATIVE RIDICULE THE DEMOCRATIC PROPOSAL AS AN IMPOSTER AND LINEITEM VOODOO BUT SO FAR THEY LACK THE VOTES TO PREVAIL INSTEAD THE CONSERVATIVE ATTACK HAS FOCUSED ON BROADENING THE MANDATE OF THE DEMOCRATIC PLAN TO EMPOWER THE PRESIDENT TO STRIKE NOT ONLY SPENDING ITEMS BUT ALSO TAX BREAKS IN REVENUE BILLS THIS PROPOSAL BY MINORITY LEADER ROBERT MICHEL HAS BEEN EMBRACED BY THE APPROPRIATIONS COMMITTEE LEADERSHIP BUT MR FOLEY HAS USED HIS POWER TO BLOCK SUCH AN AMENDMENT FOR FEAR IT WOULD BE SO DIVISIVE THAT IT WOULD UNDERMINE THE WHOLE DEMOCRATIC EFFORT 9304290017 930429 BUSINESS BRIEF BEARINGS INC FISCAL 4THQUARTER PROFIT MAY TOP ANALYST ESTIMATES BEARINGS INC EXPECTS TO EQUAL OR EXCEED ANALYST ESTIMATES FOR THE FOURTH QUARTER ENDING JUNE 30 PRODUCING FISCALYEAR PROFIT OF 118 TO 125 A SHARE SAID JOHN C DANNEMILLER CHAIRMAN AND CHIEF EXECUTIVE OFFICER THAT WOULD INDICATE QUARTERLY PROFIT OF 40 CENTS TO 47 CENTS A SHARE ANALYSTS FORECAST FOURTHQUARTER NET OF 40 CENTS TO 42 CENTS A SHARE IN THE YEAREARLIER QUARTER THE CLEVELAND DISTRIBUTOR OF REPLACEMENT BEARINGS AND OTHER INDUSTRIAL MAINTENANCE PRODUCTS HAD A NET LOSS OF 35 MILLION OR 49 CENTS A SHARE BECAUSE OF AFTERTAX RESTRUCTURING CHARGES OF 47 MILLION OR 66 CENTS A SHARE 9304290016 930429 BUSINESS BRIEF PANHANDLE EASTERN CORP COMPANY'S EARNINGS RISE BY 15 IN THE FIRST QUARTER PANHANDLE EASTERN CORP HOUSTON BOOSTED BY HIGHER VOLUMES OF NATURALGAS TRANSMISSIONS THROUGH ITS PIPELINES SAID FIRSTQUARTER NET INCOME ROSE 15 PANHANDLE SAID EARNINGS ROSE TO 695 MILLION OR 64 CENTS A SHARE FROM A RESTATED 606 MILLION OR 56 CENTS A SHARE THE YEAREARLIER QUARTER INCLUDES A PRETAX GAIN OF 115 MILLION FROM SETTLEMENT OF A FEDERAL RATE CASE REVENUE FELL 10 TO 6126 MILLION FROM 6825 MILLION REFLECTING A 40 DECLINE IN THE VOLUME OF GAS THAT'S OWNED AND SOLD BY THE COMPANY THAT DECLINE WAS PARTIALLY OFFSET BY DECREASED EXPENSES FOR PURCHASING GAS TO BE RESOLD MOST OF THE COMPANY'S PIPELINE BUSINESS COMES FROM TRANSPORTING GAS OWNED BY OTHERS SEPARATELY PANHANDLE PLANS TO FILE FOR AN OFFERING OF AS MANY AS 10 MILLION COMMON SHARES THE COMPANY CURRENTLY HAS ABOUT 109 MILLION SHARES OUTSTANDING PROCEEDS WILL BE USED TO REPAY DEBT AMONG OTHER THINGS THE COMPANY SAID PANHANDLE SAID IT PLANS TO COMPLETE THE OFFERING IN THE SECOND OR THIRD QUARTER 9304290015 930429 BUSINESS BRIEF MEDICAL CARE AMERICA EXPECTS PROFIT ROSE BUT BELOW ESTIMATES DALLAS MEDICAL CARE AMERICA INC STILL STRUGGLING TO RESTRUCTURE ITS TROUBLED HOME INFUSION BUSINESS SAID IT EXPECTS EARNINGS FOR THE FIRST QUARTER WERE BELOW ANALYSTS' ESTIMATES OF ABOUT 35 CENTS A SHARE THE HEALTHCARE PROVIDER ALSO SAID THAT IT EXPECTED ITS QUARTERLY EARNINGS WERE HIGHER THAN THE 27 CENTS A SHARE REPORTED FOR THE FOURTH QUARTER OF 1992 WHEN IT HAD NET INCOME OF 97 MILLION ON REVENUE OF 1735 MILLION THE ANNOUNCEMENT MADE AFTER THE CLOSE OF TRADING YESTERDAY WAS THE LATEST IN A SERIES OF TROUBLESOME DEVELOPMENTS FOR MEDICAL CARE WHICH HAS OVERHAULED ITS MANAGEMENT TEAM REVAMPED ITS MARKETING STRATEGY AND CUT ITS PRICES AND WORK FORCE SINCE IT WAS FORMED IN SEPTEMBER IN A MERGER BETWEEN MEDICAL CARE INTERNATIONAL INC A DALLAS OPERATOR OF OUTPATIENT SURGERY CENTERS AND CRITICAL CARE AMERICA INC A WESTBOROUGH MASS PROVIDER OF HOME INFUSION OR HOME DELIVERY OF INTRAVENOUS DRUGS AND NUTRITION DESPITE ITS RESTRUCTURING EFFORTS MEDICAL CARE SAID THAT BECAUSE OF CONTINUED LOWER PRICING IN THE INFUSION MARKET IT EXPECTS ITS INFUSION BUSINESS WAS ONLY MODESTLY PROFITABLE FOR THE FIRST QUARTER WITH REVENUE FROM THAT BUSINESS EXPECTED TO BE REPORTED ABOUT 7 LOWER THAN THE SAME PERIOD A YEAR EARLIER THE COMPANY SAID IT EXPECTS TO REPORT HIGHER PROFIT FROM ITS SURGICALCENTER BUSINESS FOR THE FIRST QUARTER WITH REVENUE FROM THAT BUSINESS RISING ABOUT 25 TO 1009 MILLION AND OPERATING PROFIT INCREASING 11 TO 258 MILLION FOR THE FIRST QUARTER A YEAR AGO MEDICAL CARE REPORTED A NET INCOME OF 174 MILLION OR 46 CENTS A SHARE ON REVENUE OF 1459 MILLION MEDICAL CARE SHARES CLOSED AT 16125 DOWN 125 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY 9304290014 930429 CORRECTIONS & AMPLIFICATIONS THE BRITISH POUND WAS QUOTED AT 15774 LATE TUESDAY IN NEW YORK THE QUOTE WAS MISSTATED AS 15474 IN YESTERDAY'S FOREIGN EXCHANGE COLUMN WARNACO GROUP INC'S SHARES CLOSED AT 3350 UP 625 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING TUESDAY A BUSINESS BRIEF IN YESTERDAY'S EDITION INCORRECTLY STATED THAT THE STOCK CLOSED AT 25 UP 375 CENTS 9304290013 930429 WHO'S NEWS IBM VICE CHAIRMAN KUEHLER TO RETIRE AUG 31 TOPLEVEL DUTIES ARE SHUFFLED BY LAURENCE HOOPER STAFF REPORTER OF THE WALL STREET JOURNAL JACK KUEHLER AN INTERNATIONAL BUSINESS MACHINES CORP VICE CHAIRMAN AND THE COMPANY'S TOP TECHNOLOGIST SAID HE WILL RETIRE AUG 31 SHORTLY AFTER HIS 61ST BIRTHDAY IBM RESHUFFLED SOME TOPLEVEL DUTIES AS A RESULT INCREASING THE POWER OF VICE CHAIRMAN PAUL RIZZO FOR EXAMPLE BUT A SPOKESMAN SAID BIG BLUE WON'T NAME A SUCCESSOR TO THE 35YEAR VETERAN IMMEDIATELY IF AT ALL LOUIS GERSTNER IBM CHAIRMAN AND CHIEF EXECUTIVE OFFICER HASN'T DECIDED HOW TO ORGANIZE HIS LONGTERM MANAGEMENT TEAM THE SPOKESMAN ADDED SEPARATELY IBM'S STOCK ROSE ON APPARENTLY UNFOUNDED RUMORS THAT CHRISTOPHER STEFFEN WHO UNEXPECTEDLY RESIGNED AS EASTMAN KODAK CO'S CHIEF FINANCIAL OFFICER WOULD JOIN IBM IBM HAS BEEN SEARCHING FOR A NEW CHIEF FINANCIAL OFFICER LIKELY AN OUTSIDER SINCE CFO FRANK METZ WAS PUSHED INTO EARLY RETIREMENT IN JANUARY'S PURGE OF TOP EXECUTIVES AND SOURCES SAID IBM BASED IN ARMONK NY HAS A SUCCESSOR IN THE WINGS AND THAT AN ANNOUNCEMENT IS IMMINENT BUT MR STEFFEN ISN'T THE HEIR APPARENT THEY SAID ALTHOUGH THINGS COULD CHANGE NOW THAT HE IS AVAILABLE THE IDENTITY OF IBM'S CFODESIGNATE COULDN'T BE LEARNED MR RIZZO IS ACTING AS INTERIM CFO MR STEFFEN COULDN'T BE REACHED AN IBM SPOKESMAN DECLINED TO COMMENT ON SPECULATION ABOUT MR STEFFEN IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE IBM STOCK FINISHED AT 49875 UP 150 MR KUEHLER WAS THE ONLY MEMBER OF IBM'S FORMER RULING TROIKA TO SURVIVE THE JANUARY PURGE WHICH WAS TRIGGERED BY FORMER CHAIRMAN JOHN AKERS' DECISION TO STEP DOWN UNDER PRESSURE AFTER DISASTROUS FOURTHQUARTER RESULTS MR KUEHLER HAD RELINQUISHED HIS PRESIDENT'S TITLE TO BECOME VICE CHAIRMAN BUT UNLIKE MESSRS AKERS AND METZ HE DIDN'T LOSE HIS JOB IN FACT HIS INFLUENCE AT BIG BLUE STILL SEEMS SOLID WHEN MR GERSTNER CAME ABOARD FOR EXAMPLE MR KUEHLER WAS THE ONLY IBM EXECUTIVE HE NAMED IN A APRIL 2 VIDEO ADDRESS TO EMPLOYEES IBM'S TECHNOLOGY IS RESPECTED THROUGHOUT THE WORLD AND THIS IS DUE IN LARGE PART TO JACK'S LEADERSHIP MR GERSTNER SAID YESTERDAY LAST YEAR MR AKERS ASKED MR KUEHLER TO STAY BEYOND IBM'S TRADITIONAL RETIREMENT AGE OF 60 WITH THE UNDERSTANDING THAT HE WOULD LEAVE AROUND HIS 1993 BIRTHDAY DESPITE BIG CHANGES AT IBM WE'VE FOLLOWED THROUGH ON THAT DEAL SAID MR KUEHLER IN A TELEPHONE INTERVIEW FOR THE REMAINDER OF HIS STINT MR KUEHLER WILL FOCUS ON ONLY A FEW STRATEGIC ISSUES ENSURING THE CONTINUITY OF KEY ALLIANCES WORKING ON IBM'S IMPORTANT MOVES INTO SOCALLED CLIENTSERVER COMPUTING AND ADVISING MR GERSTNER ON TECHNOLOGY ISSUES FOUR PARTS OF IBM THAT HAD REPORTED TO MR KUEHLER ITS SEMICONDUCTOR SOFTWARE MINICOMPUTER AND PERSONAL SYSTEMS OPERATIONS WILL REPORT TO MR RIZZO AT LEAST ON AN INTERIM BASIS ANOTHER CHANGE PAT TOOLE WHO OVERSEES THE REMAINDER OF IBM'S MANUFACTURING AND DEVELOPMENT INCLUDING ITS HUGE MAINFRAMECOMPUTER BUSINESS ALSO WILL REPORT TO MR RIZZO HE HAD REPORTED DIRECTLY TO THE CHAIRMAN THE ARRANGEMENTS CONFIRM MR RIZZO'S ROLE AS THE MOST IMPORTANT IBM EXECUTIVE AFTER MR GERSTNER A MAJOR COMEBACK FOR THE MAN WHO LOST OUT TO MR AKERS FOR THE CHAIRMAN'S POST IN THE MID1980S MR RIZZO RETURNED FROM RETIREMENT AS IBM'S CRISIS DEEPENED LATE LAST YEAR MR KUEHLER'S LEGACY AT IBM IS LARGE HE JOINED ITS LABORATORY IN SAN JOSE CALIF AS AN ENGINEER IN 1958 AND WAS A SIGNIFICANT CONTRIBUTOR TO MANY TECHNICAL ADVANCES PARTICULARLY IN DATA STORAGE AS PRESIDENT HE BECAME THE COMPANY'S HIGHESTRANKING TECHNOLOGIST EVER FAMOUS FOR HIS ACCESSIBILITY ESPECIALLY THROUGH ELECTRONIC MAIL HE WAS A CHAMPION OF THE COMPANY'S ENGINEERS EVEN THOUGH HIS JUDGMENT ON LONGRANGE STRATEGIES WAS QUESTIONED AT TIMES IN RECENT YEARS HE HAS BEEN A PRIME FORCE IN GETTING IBM TO HOOK UP WITH OTHER COMPANIES SUCH AS APPLE COMPUTER INC MOTOROLA INC SIEMENS AG AND TOSHIBA CORP IN FARREACHING ALLIANCES HIS TRUE CONTRIBUTION TO IBM HISTORY MAY BE A TRIPARTITE DEAL HE STRUCK WITH APPLE AND MOTOROLA IN 1991 WHICH WILL LAY THE FOUNDATION FOR MUCH OF IBM'S FUTURE HARDWARE AND SOFTWARE MR KUEHLER SAID HE WILL MAINTAIN CONTACT WITH IBM THROUGH HIS SERVICE ON THE BOARD OF TALIGENT INC IBM'S JOINT VENTURE IN ADVANCED SOFTWARE WITH APPLE HE'LL ALSO STAY CONNECTED TO IBM'S EMAIL SYSTEM PROFS AS LONG AS I HAVE PROFS I'M IN TOUCH HE SAID MR KUEHLER WILL DIVIDE HIS RETIREMENT TIME BETWEEN CALIFORNIA WHERE HE PLANS TO BUY A SMALL HOME AND A NEW HOUSE HE IS BUILDING IN TELLURIDE COLO WHERE HE PLANS TO SKI AND HIKE WITH HIS WIFE CARMEN FIVE CHILDREN AND THREE GRANDCHILDREN 9304290012 930429 POLITICS & POLICY GOP GROUP PLANS CAMPAIGN AGAINST CLINTON TAX PLAN BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AN ORGANIZATION OF TOP REPUBLICAN CONSERVATIVES SAID IT PLANS AN ALLOUT CAMPAIGN TO DEFEAT PRESIDENT CLINTON'S TAX PROGRAM ADDING TO THE OBSTACLES THE WHITE HOUSE MUST OVERCOME THE GROUP EMPOWER AMERICA SAID ITS CAMPAIGN AGAINST THE CLINTON PLAN WILL INCLUDE ADVERTISEMENTS TARGETED AT THE STATES AND CONGRESSIONAL DISTRICTS OF LAWMAKERS WHO ARE BELIEVED TO BE WAVERING IN THEIR SUPPORT OF THE CLINTON PROGRAM IN ADDITION THE ORGANIZATION PLANS WHAT IT CALLS A GRASSROOTS CAMPAIGN AGAINST THE CLINTON PLAN CONDUCTED IN COOPERATION WITH MORE THAN 100 SMALLER ORGANIZATIONS FROM AROUND THE NATION THAT ARE AFFILIATED WITH EMPOWER AMERICA EMPOWER AMERICA IS A CONSERVATIVE THINK TANK AND ADVOCACY GROUP ORGANIZED AFTER LAST FALL'S ELECTION IT IS LED BY JACK KEMP FORMER HOUSING SECRETARY AND POSSIBLE 1996 PRESIDENTIAL CANDIDATE WILLIAM BENNETT FORMER EDUCATION SECRETARY AND DRUG CZAR WHO ALSO IS ENTERTAINING THOUGHTS OF A PRESIDENTIAL RUN AND VIN WEBER A FORMER REPUBLICAN CONGRESSMAN FROM MINNESOTA WHO WAS A LEADER OF HOUSE CONSERVATIVES BEFORE HE RETIRED THOSE FIGURES ARE LIKELY TO BE FEATURED IN THE ADS OPPOSING THE CLINTON PROGRAM THE GROUP SAID WE WILL GO BY LAND AND BY SEA AND BY AIR AND BY AIRWAVE AND BY TUBTHUMPING VOWED MR BENNETT THE CAMPAIGN WILL STRETCH OVER THE NEXT 100 DAYS MR WEBER SAID IT ESSENTIALLY WILL BEGIN TODAY WHEN MR KEMP PLANS TO APPEAR BY SATELLITE IN INTERVIEWS WITH TELEVISION STATIONS IN 12 CITIES THE ORGANIZED REPUBLICAN EFFORT TO UNDERCUT PUBLIC SUPPORT FOR MR CLINTON'S PROPOSED TAX INCREASES FURTHER COMPLICATES THE TASK FACING THE PRESIDENT WHO ALREADY CONFRONTS DOUBTS ABOUT VARIOUS PARTS OF HIS TAX PLAN FROM DEMOCRATS AND REPUBLICANS INSIDE CONGRESS SUCH ORGANIZED OPPOSITION EFFORTS WILL INCREASE THE PRESSURE ON THE PRESIDENT TO DEVELOP A COUNTERSTRATEGY FOR BUILDING PUBLIC SUPPORT FOR HIS PLANS MR KEMP VOWED THAT EMPOWER AMERICA WILL BE PROPOSING ALTERNATE TAX POLICIES INCLUDING INDEXING CAPITAL GAINS TAXES AND RETIREMENT PROGRAMS FOR INFLATION 9304290011 930429 TWO FOUNDERS QUIT NATIONAL MEDICAL POSTS BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL SANTA MONICA CALIF NATIONAL MEDICAL ENTERPRISES INC'S TOP TWO EXECUTIVES AND COFOUNDERS RICHARD K EAMER AND LEONARD COHEN ARE STEPPING DOWN FROM THEIR MAJOR OPERATING POSITIONS AT THE BELEAGUERED HEALTH CARE SERVICES CONCERN THE ANNOUNCEMENT CAME AFTER A MEETING OF DIRECTORS OF THE COMPANY ONE OF THE NATION'S LARGEST OPERATORS OF ACUTECARE AND SPECIALTY HOSPITALS MR EAMER 65 YEARS OLD PREVIOUSLY SAID THAT HE HAD NO PLANS TO GIVE UP ANY OF HIS DUTIES AND THAT HE WOULD RUN THE COMPANY FOR THE FORSEEABLE FUTURE OR AT LEAST UNTIL ITS CURRENT TROUBLES WERE BEHIND IT MR EAMER WILL CONTINUE AS CHAIRMAN BUT ON JUNE 1 HE WILL TURN OVER HIS CHIEF EXECUTIVE OFFICER TITLE TO INVESTMENT BANKER JEFFREY C BARBAKOW 49 A NATIONAL MEDICAL DIRECTOR SINCE 1990 MR BARBAKOW WILL ALSO BECOME PRESIDENT MR COHEN 68 WHO HAD BEEN PRESIDENT AND CHIEF OPERATING OFFICER WILL GIVE UP THOSE TITLES AND BECOME VICE CHAIRMAN A NEW POST THE COMPANY SAID MESSRS EAMER AND COHEN WOULD REMAIN ACTIVE IN THE COMPANY'S MANAGEMENT BUT THEIR DAYTODAY DUTIES HAVEN'T BEEN DEFINED MICHAEL H FOCHT SR 50 SENIOR EXECUTIVE VICE PRESIDENT AND DIRECTOR OF OPERATIONS IMMEDIATELY TOOK OVER THE ADDITIONAL POSITION OF CHIEF OPERATING OFFICER SPECULATION THAT MESSRS EAMER AND COHEN AND THE COMPANY'S THIRD FOUNDER JOHN C BEDROSIAN 58 MIGHT BE FORCED TO RESIGN HAS RUN RAMPANT SINCE THE COMPANY DISCLOSED LAST WEEK THAT MR EAMER SOLD ALMOST ALL HIS COMPANY STOCK TO PAY OFF PERSONAL LOANS MR BEDROSIAN ALSO SOLD A LARGE CHUNK OF STOCK HE REMAINS SENIOR EXECUTIVE VICE PRESIDENT AND HIS DUTIES AREN'T CHANGING THE COMPANY SAID YESTERDAY WHILE IT DOESN'T APPEAR THAT MESSRS EAMER AND COHEN WERE TOPPLED BY THE KIND OF BOARDROOM PUTSCH THAT HAS RECENTLY SHAKEN CORPORATE GIANTS SUCH AS GENERAL MOTORS CORP AND DIGITAL EQUIPMENT CO THE COMPANY'S DIRECTORS CLEARLY HAVE BEEN UNDER SOME PRESSURE NATIONAL MEDICAL'S BOARD IS DOMINATED BY EMPLOYEES FORMER EMPLOYEES AND OTHERS WITH CLOSE TIES TO THE COMPANY THE CHOICE OF MR BARBAKOW A LONGTIME FRIEND AND ASSOCIATE OF MR EAMER'S WITH NO HEALTH CARE OPERATING EXPERIENCE SUGGESTS THAT HE WILL MOVE GINGERLY AND THAT IMMEDIATE SWEEPING CHANGES AREN'T LIKELY NATIONAL MEDICAL HAS HAD SEVERE LEGAL AND BUSINESS PROBLEMS MAINLY SURROUNDING ITS ONCE FASTGROWING PSYCHIATRIC CARE DIVISION WHICH HAS BEEN ACCUSED OF ENGAGING IN IMPROPER PRACTICES AND BILLING PROCEDURES THE COMPANY IS UNDER INVESTIGATION BY VARIOUS FEDERAL AND STATE AGENCIES AND HAS BEEN SUED BY A NUMBER OF INSURANCE COMPANIES OVER 1 BILLION IN CLAIMS THEY SAY ARE FRAUDULENT MR EAMER SUPPORTED BY THE BOARD HAS BEEN LOOKING AT A SUCCESSION PLAN MR BARKABOW SAID IN AN INTERVIEW DICK TOLD ME HE THOUGHT THIS WAS THE RIGHT TIME TO RELINQUISH THE CHIEF EXECUTIVE JOB DUE TO PERSONAL FACTORS INCLUDING HEALTH PROBLEMS AND HIS AGE MR EAMER'S HEARING HAS DETERIORATED IN RECENT YEARS AND HE HAS SAID PUBLICLY THAT HE HAS A DEPRESSIVE DISORDER THAT IS FULLY UNDER CONTROL WITH THE USE OF THE DRUG LITHIUM LAST YEAR HE UNDERWENT MAJOR BACK SURGERY MESSRS EAMER AND COHEN DECLINED TO COMMENT THE MANAGEMENT CHANGES PROBABLY DON'T GO FAR ENOUGH TO SATISFY SOME CRITICS WHO WANTED THE BOARD TO OUST ALL THREE FOUNDERS AND BRING IN A TOUGH NEW OPERATING TEAM SOME SHAREHOLDERS WHO HAVE BOUGHT STOCK AT DEPRESSED PRICES IN RECENT MONTHS DID SO ON A BET THAT NEW MANAGERS EMOTIONALLY DETACHED FROM THE COMPANY'S PROBLEMS MIGHT BE ABLE TO NEGOTIATE QUICK RELATIVELY FAVORABLE SETTLEMENTS WITH THE GOVERNMENT AND INSURERS MR BARKABOW DECLINED TO DISCUSS THE LITIGATION THE SELECTION OF MR BARBAKOW TO RUN NATIONAL MEDICAL IS SURE TO STIR SPECULATION THAT HIS MAIN JOB WILL BE TO RESTRUCTURE THE COMPANY AND TRY TO SELL OFF MAJOR PIECES IF NOT THE ENTIRE COMPANY BUT IN AN INTERVIEW MR BARBAKOW SAID I HAVE NO INTENTION TO DO ANYTHING LIKE THAT HE ADDED CLEARLY THERE ARE PRESSING PROBLEMS FACING THE COMPANY BUT MY FOCUS WILL BE TO OPTIMIZE THE VALUE OF THIS COMPANY FOR ITS SHAREHOLDERS MR BARBAKOW SAID THAT HE WASN'T MERELY A CARETAKER MANAGER ADDING I INTEND TO DO THIS INDEFINITELY IN OCTOBER 1988 MR BARBAKOW WAS BROUGHT IN AS HEAD OF WHAT WAS THEN MGM/UA COMMUNICATIONS CO HE HAD BEEN A MANAGING DIRECTOR OF THE INVESTMENT BANKING UNIT OF MERRILL LYNCH & CO AND HIS EMPLOYMENT AGREEMENT WITH THE TROUBLED MGM/UA WAS STRUCTURED IN A WAY TO MAKE IT MORE LUCRATIVE IF THE COMPANY WAS SOLD IT FINALLY WAS UNLOADED IN 1990 TO ITALIAN DEAL MAKER GIANCARLO PARRETTI THE STUDIO IS CURRENTLY CONTROLLED BY MR PARRETTI'S BANK THE FRENCH STATEOWNED CREDIT LYONNAIS SA FOLLOWING FINANCIAL COMPLICATIONS AND LEGAL BATTLES AFTER THE SALE MR BARBAKOW BECAME A MANAGING DIRECTOR OF DONALDSON LUFKIN & JENRETTE A POSITION HE WILL RESIGN MR BARBAKOW HAS BEEN A LONGTIME INVESTMENT BANKER FOR NATIONAL MEDICAL THE COMPANY WAS BORN IN MAY 1969 WITH SIX HOSPITALS AND A 25 MILLION PUBLIC STOCK OFFERING REVENUE AND PROFIT SOARED IN THE ENSUING 20 YEARS IN 1991 MR EAMER MADE 199 MILLION MAKING HIM ONE OF THE HIGHEST PAID CORPORATE EXECUTIVES EVEN AS THE COMPANY'S FORTUNES WERE DECLINING NATIONAL MEDICAL'S NET INCOME PLUMMETED 62 TO 1041 MILLION OR 60 CENTS A SHARE ON REVENUE OF 398 BILLION IN THE YEAR ENDED MAY 31 1992 NATIONAL MEDICAL SHARES WERE QUOTED YESTERDAY AT 750 UNCHANGED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE ANNOUNCEMENT OF THE RESIGNATIONS CAME AFTER THE CLOSE OF MARKETS NATIONAL MEDICAL SHARES HAVE TRADED AS HIGH AS 1675 IN THE PAST YEAR AND AS HIGH AS 258125 IN 1991 9304290010 930429 TECHNOLOGY & HEALTH ADVANCED MICRO'S 486CHIP CLONES VIOLATE COPYRIGHTS INTEL CHARGES BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL INTEL CORP IN ITS LATEST LEGAL MANEUVER AIMED AT PROTECTING ITS HUGE SHARE OF THE CHIP MARKET FILED SUIT AGAINST ADVANCED MICRO DEVICES INC CHARGING THAT THE COMPANY'S NEW CLONES OF INTEL'S 486 MICROPROCESSOR VIOLATE INTEL COPYRIGHTS THE ACTIONS COME LESS THAN TWO WEEKS AFTER A JUDGE'S STUNNING DISMISSAL OF A JURY VERDICT LAST YEAR THAT ADVANCED MICRO DIDN'T HAVE THE RIGHT TO USE CERTAIN INTELCOPYRIGHTED SOFTWARE IN ITS CHIPS DAYS AFTER THE DISMISSAL ADVANCED MICRO OF SUNNYVALE CALIF BEGAN SHIPPING 486CHIP CLONES THAT USE THE INTEL SOFTWARE CALLED MICROCODE AND THAT ADVANCED MICRO HAD DEVELOPED LAST YEAR INTEL SAID IT FILED A COMPLAINT AGAINST ADVANCED MICRO IN US DISTRICT COURT IN SAN JOSE CALIF CHARGING THAT THE RIVAL'S CLONES INFRINGE ON NUMEROUS INTEL COPYRIGHTS THE SUIT ALSO CLAIMS THAT ANOTHER 486 CLONE FROM ADVANCED MICRO A CLEAN ROOM VERSION THAT USES A REVERSEENGINEERED MICROCODE RATHER THAN THE INTELCOPYRIGHTED MICROCODE VIOLATES INTEL COPYRIGHTS AS WELL INTEL'S ATTORNEY F THOMAS DUNLAP SAID THE ULTIMATE AIM OF INTEL'S COMPLAINT IS TO PREVENT ADVANCED MICRO FROM SELLING 486CHIP CLONES ADVANCED MICRO'S CLEAN ROOM VERSION VIOLATES AN INTEL PATENT IN THE WAY IT WAS DEVELOPED HE SAID THE MESSAGE TO ADVANCED MICRO IS GO AND DO YOUR OWN INNOVATIVE PRODUCTS JUST DON'T COPY OURS MR DUNLAP SAID THE NEW LAWSUIT WASN'T ALTOGETHER UNEXPECTED INTEL INTENT ON PROTECTING ITS DOMINANT SHARE OF THE MICROPROCESSOR MARKET HAS MADE A PRACTICE OF SUING NEARLY EVERY CLONER OF ITS CHIPS SOON AFTER THE CLONES HIT THE MARKET WHILE INTEL ARGUES THAT IT IS USING THE COURTS TO LEGITIMATELY SAFEGUARD ITS INTELLECTUAL PROPERTY RIVALS ACCUSE THE SANTA CLARA CALIF CHIP GIANT OF USING THE COURTS AS A MARKETING TOOL INDEED SOME BIG PERSONALCOMPUTER MAKERS PARTICULARLY THE JAPANESE HAVE IN THE PAST SHIED AWAY FROM CLONES FROM ADVANCED MICRO AND OTHERS BECAUSE OF THE LEGAL UNCERTAINTIES CREATED BY INTEL'S SUITS INTEL HAS TRADITIONALLY USED THE COURTS AS AN ARM OF ITS MARKETING ORGANIZATION IN AN EFFORT TO CREATE FEAR UNCERTAINTY AND DOUBT IN THE MINDS OF ADVANCED MICRO'S CUSTOMERS SAID AN ADVANCED MICRO SPOKESMAN WHO ADDED THAT ADVANCED MICRO OFFICIALS HAD NOT SEEN THE COMPLAINT AND COULDN'T SPECIFICALLY COMMENT IN A SEPARATE ACTION INTEL FILED A MOTION IN US DISTRICT COURT IN SAN FRANCISCO ASKING JUDGE WILLIAM INGRAM TO RECONSIDER THE DISMISSAL OF THE JURY VERDICT OR ALLOW INTEL TO IMMEDIATELY APPEAL THE CASE TO A HIGHER COURT WITHOUT COMPLETING A SECOND TRIAL MR DUNLAP SAID INTEL BASED ITS REQUEST ON ITS CONTENTION THAT ADVANCED MICRO HAS NO SUBSTANTIAL GROUNDS FOR JUSTIFYING A NEW TRIAL I DON'T THINK INTEL HAS ANY OTHER CHOICE BUT TO FILE A COUNTERSUIT AGAINST ADVANCED MICRO AT THIS POINT SAID CATLIN WOLFARD ANALYST BLACK & CO IT'S JUST KIND OF DE RIGUEUR AT THIS POINT INTEL ALSO SAID IT RECEIVED A FAVORABLE RULING IN A CASE AGAINST CYRIX CORP RICHARDSON TEXAS ACCORDING TO INTEL A SHERMAN TEXAS FEDERAL COURT JUDGE DENIED CYRIX'S REQUEST FOR A PRELIMINARY INJUNCTION RELATED TO AN INTEL PATENT INTEL SAID THE RULING EFFECTIVELY MEANS THAT INTEL HAS THE RIGHT TO SUE COMPUTER MANUFACTURERS WHO USE CLONES OF INTEL'S CHIPS TO BUILD COMPUTER SYSTEMS WITHOUT AN INTEL LICENSE A CYRIX SPOKESMAN DISAGREED SAYING THAT LITIGATION IN THE CASE IS STILL CONTINUING AND THAT CYRIX'S CUSTOMERS ARE PROTECTED FROM LEGAL LIABILITY RELATED TO THE CASE THIS IS JUST A SMOKE SCREEN FROM INTEL SHE SAID 9304290009 930429 CENTRAL MORTGAGE ACQUISITION KANSAS CITY MO CENTRAL MORTGAGE BANCSHARES INC SAID IT HAS AGREED TO ACQUIRE CLOSELY HELD BLUE SPRINGS BANK THROUGH AN OFFER VALUED AT 193 MILLION CENTRAL MORTGAGE SAID THE MANAGEMENT OF BLUE SPRINGS APPROVED AN OFFER OF 23 A SHARE FOR THE 840347 SHARES OF BLUE SPRINGS COMMON BLUE SPRINGS BASED IN BLUE SPRINGS MO HAS ASSETS OF 180 MILLION CENTRAL MORTGAGE A BANK HOLDING COMPANY WITH 414 MILLION IN ASSETS SAID EACH SHARE THAT ISN'T PURCHASED UNDER THE OFFER WOULD BE CONVERTED INTO CENTRAL MORTGAGE SHARES WORTH 23 THE OFFER IS SUBJECT TO AMONG OTHER THINGS APPROVAL BY THE FEDERAL RESERVE BOARD AND THE TENDER OF AT LEAST 67 OF BLUE SPRINGS SHARES CENTRAL MORTGAGE SAID THE OFFER IS SLATED TO EXPIRE MAY 21 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY CENTRAL MORTGAGE CLOSED AT 1275 DOWN 50 CENTS 9304290008 930429 BUSINESS BRIEF SIEMENS AG INFORMATIONTECHNOLOGY UNIT EXPECTS DROP IN SALES GERMANY'S SIEMENS NIXDORF INFORMATIONSSYSTEME AG SAID IT EXPECTS FALLING INTERNATIONAL PRICES TO HAVE A ONEBILLIONMARK 6329 MILLION IMPACT ON SALES IN FISCAL 1993 BUT SOME GAINS IN SALES VOLUME WILL PARTLY MAKE UP FOR THE EFFECT OF DROPPING PRICES SAID A SPOKESMAN FOR SNI THE INFORMATIONTECHNOLOGY UNIT OF GERMAN ELECTRONICS GROUP SIEMENS AG IN FISCAL 1992 SNI POSTED SALES OF 13 BILLION MARKS 823 BILLION AND A GROUP NET LOSS OF 513 MILLION MARKS 3247 MILLION WE DON'T EXPECT SALES TO GO AS LOW AS 12 BILLION MARKS IN 1993 A COMPANY SPOKESMAN SAID THE CAUTIOUS OUTLOOK WAS IN LINE WITH OTHER RECENT FORECASTS FROM THE COMPANY SNI ALSO SAID SALES IN THE FIRST SIX MONTHS OF ITS CURRENT FISCAL YEAR FELL ABOUT 9 TO 56 BILLION MARKS THE COMPANY NOTED THE FIRST HALF OF FISCAL 1992 WAS MARKED BY UNUSUALLY HIGH GROWTH IN SALES BECAUSE OF STRONG DEMAND FROM EASTERN GERMANY 9304290007 930429 CATERPILLAR INC SUSPENDS WORKERS AS BATTLE ESCALATES BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL CATERPILLAR INC INDEFINITELY SUSPENDED 109 WORKERS AT A FOUNDRY OUTSIDE PEORIA ILL IN A SHARP ESCALATION OF THE BATTLE BETWEEN THE UNITED AUTO WORKERS UNION AND THE CONSTRUCTION EQUIPMENT MAKER BOTH THE UNION AND THE COMPANY SAID THE WORKERS AT THE MAPLETON PLANT REFUSED TO REMOVE RED TSHIRTS DECLARING PERMANENTLY REPLACE FITES A REFERENCE TO DONALD FITES CATERPILLAR'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE SUSPENSIONS COME AS THE UNION INCREASES ITS PRESSURE TACTICS IN WHAT IT SAYS IS AN EFFORT TO GET THE COMPANY BACK TO THE BARGAINING TABLE CATERPILLAR WHICH IS BASED IN PEORIA HAS SUSPENDED DOZENS OF OTHER WORKERS AT ITS FACTORIES IN ILLINOIS AND YORK PA BUT THIS WAS ITS BIGGEST ACTION YET TO DISCIPLINE THE PROTESTERS SOME 14500 UAW MEMBERS HAVE BEEN WORKING WITHOUT A CONTRACT AT CATERPILLAR SINCE APRIL 1992 WHEN THEY QUIT THEIR STRIKE AFTER THE COMPANY THREATENED TO REPLACE THEM PERMANENTLY BOTH SIDES SAY THEY WANT A CONTRACT BUT CATERPILLAR WISHES TO START FROM ITS IMPLEMENTED OFFER WHILE THE UNION SAYS IT WANTS NO PRECONDITIONS AS THEY HAVE IN THE PAST THE TWO SIDES DIFFERED OVER THE EFFECT OF YESTERDAY'S SUSPENSIONS AT THE MAPLETON FOUNDRY WHICH MAKES ENGINE CASTINGS THE COMPANY HAS SHUT DOWN ITS OWN PLANT OVER A TSHIRT SAID JERRY BROWN PRESIDENT OF THE UAW LOCAL THAT REPRESENTS WORKERS AT THE FOUNDRY UAW OFFICIALS SAID THE SUSPENSIONS AMOUNTED TO ABOUT HALF THE PRODUCTION WORKERS ON THE FIRST SHIFT A COMPANY SPOKESMAN SAID THE SUSPENSIONS AMOUNTED TO 30 OF THE SHIFT AND THAT THE EFFECT ON THE PLANT WAS MINIMAL THE SPOKESMAN ADDED THAT CATERPILLAR ISN'T CONCERNED THAT SUCH ACTIONS WILL AFFECT PRODUCTION BUT WE ARE CONCERNED THAT SOME EMPLOYEES ARE BEING MISLED BY THEIR UNION'S LEADERS INSUBORDINATION IS A SERIOUS OFFENSE BUT THE BALTIMORE AND PEORIA OFFICES OF THE NATIONAL LABOR RELATIONS BOARD HAVE TAKEN A DIFFERENT VIEW OF THE WORKERS' RIGHT TO WEAR THE TSHIRTS OR SIMILAR BUTTONS THE BOARD AND THE COURTS HAVE LONG RECOGNIZED THAT EMPLOYEES HAVE THE RIGHT TO WEAR UNION INSIGNIA EVEN WHILE AT WORK UNLESS THEY ARE SO OBSCENE OFFENSIVE OR OBNOXIOUS AS TO BE UNPROTECTED GLENN ZIPP PEORIA REGIONAL DIRECTOR OF THE NLRB SAID IN ISSUING A COMPLAINT AGAINST CATERPILLAR EARLIER THIS MONTH YESTERDAY MR ZIPP SAID ANOTHER COMPLAINT PROBABLY WILL FOLLOW IF CATERPILLAR SUSPENDED THE MAPLETON WORKERS FOR THE SAME REASON CATERPILLAR MAINTAINS THAT IT HAS A RIGHT TO PROHIBIT ATTIRE THAT SEEKS TO DIVIDE THE WORK FORCE OR DENIGRATE FELLOW EMPLOYEES A HEARING ON THE ISSUE IS SET FOR JUNE 29 EARLIER THIS MONTH UAW SECRETARYTREASURER BILL CASSTEVENS WAS AMONG SOME 130 TSHIRTCLAD DEMONSTRATORS ARRESTED FOR TRESPASSING OUTSIDE THE COMPANY'S MOSSVILLE ILL ENGINE PLANT UAW PRESIDENT OWEN BIEBER LATER TOOK PART IN A SIMILAR PROTEST BUT WASN'T ARRESTED 9304290006 930429 MARKETSCAN TAMBRANDS FINDS WOMEN CAN BE FICKLE BY KATHLEEN DEVENY AND SUEIN L HWANG STAFF REPORTERS OF THE WALL STREET JOURNAL CONSUMERS CONTINUE TO SEND A CLEAR MESSAGE TO MARKETERS NO BRAND IS IMMUNE TO PRICE COMPETITION INCLUDING THE MOST PERSONAL OF PRODUCTS WITNESS WHAT IS HAPPENING TO TAMBRANDS INC IN AN EARNINGS REPORT LATE TUESDAY IT SAID THAT US SALES OF ITS TAMPONS DECLINED IN THE FIRST QUARTER AND RATTLED INVESTORS SENT ITS STOCK PRICE TUMBLING 11 YESTERDAY TO 4525 A SHARE IN ACTIVE TRADING ON THE NEW YORK STOCK EXCHANGE FORMER COMPANY EXECUTIVES AND WALL STREET ANALYSTS SAY TAMBRANDS WHICH DOMINATES THE 700 MILLION US MARKET FOR TAMPONS WITH A 50 SHARE MISCALCULATED WOMEN'S BRAND LOYALTY TO FEMININE HYGIENE PRODUCTS THE COMPANY RAISED THE COST OF TAMPAX TAMPONS SEVERAL TIMES IN RECENT YEARS REDUCING THE NUMBER PER BOX TO 32 FROM 40 IN 1991 ONLY MONTHS AFTER INCREASING THE LIST PRICE BY 7 THEN LAST MONTH THE COMPANY BOOSTED PRICES AN ADDITIONAL 35 THEY RAISED PRICES AND THEY CREATED AN OPPORTUNITY FOR THEIR COMPETITORS TO USE PROMOTIONS TO GRAB MARKET SHARE FROM TAMPAX SAYS BONITA AUSTIN AN ANALYST WITH LEHMAN BROTHERS INC IN JANUARY THE NO 2RANKED PLAYTEX BRAND MADE BY PLAYTEX FP GROUP STEPPED UP PROMOTIONS OTHER RIVALS SUCH AS KIMBERLYCLARK CORP'S KOTEX BRAND AND JOHNSON & JOHNSON'S OB BRAND HAVE ALSO INCREASED PROMOTIONS SALES DATA GATHERED BY INFORMATION RESOURCES INC'S INFOSCAN SERVICE UNDERSCORE TAMBRANDS' CURRENT PLIGHT TOTAL SALES OF TAMPONS IN SUPERMARKETS DRUGSTORES AND MASS MERCHANDISE OUTLETS GREW 24 DURING THE 12 WEEKS ENDED MARCH 28 BUT TAMPAX'S SALES DECLINED 56 WHILE SALES OF PLAYTEX INCREASED 58 MEANWHILE SALES OF KOTEX AND OB SOARED 34 AND 15 RESPECTIVELY INDEED TAMBRANDS' RIVALS AGGRESSIVELY CAPITALIZED ON THE MARKET LEADER'S PRICING STRATEGY WHEN ARCHRIVAL PLAYTEX LAUNCHED ITS RECENT PRICE PROMOTION ITS TAMPON WHICH HAD TRADITIONALLY BEEN MARKETED AS A PREMIUMPRICED BRAND STARTED TO RIVAL TAMPAX IN PRICE MEANWHILE KIMBERLYCLARK INCREASED ITS TAMPONMANUFACTURING CAPACITY AND ALSO BEGAN HEAVILY PROMOTING ITS KOTEX BRAND AND DURING THE PAST TWO YEARS JOHNSON & JOHNSON HAS SIGNIFICANTLY INCREASED BOTH PRINT AND TELEVISION ADVERTISING FOR ITS OB BRAND ACCORDING TO A COMPANY SPOKESMAN PRIVATELABEL TAMPONS ALSO GAINED SHARE AT TAMBRANDS' EXPENSE DURING THE QUARTER ALTHOUGH THE STOREBRAND GOODS STILL ACCOUNT FOR ONLY A TINY SLICE OF THE CATEGORY SALES INCREASED 40 TO 14 MILLION DURING THE 12WEEK PERIOD ACCORDING TO INFORMATION RESOURCES MARKETING EXPERTS SAY THAT REPRESENTS A STRIKING SHIFT IN CONSUMER BEHAVIOR SINCE CONVENTIONAL WISDOM HAS HELD THAT PRIVATELABEL BRANDS COULD NEVER MAKE A SERIOUS DENT IN THE CATEGORY GIVEN THE PERSONAL NATURE OF THE PRODUCT THIS IS CERTAINLY A STRONG DANGER SIGNAL WARNS JOHN LISTER OF LISTER BUTLER INC A CONSULTING FIRM IN NEW YORK THE BRANDS HAVE ALWAYS DEPENDED ON THE FACT THAT WOMEN WON'T TRUST SOMETHING THEY DON'T KNOW TAMBRANDS HAS BEEN RAISING PRICES RATHER AGGRESSIVELY AT A TIME WHEN MOST MARKETERS HAVE BEEN RELUCTANT TO INCREASE PRICES AT ALL ADDS GARY STIBEL A PRINCIPAL AT THE NEW ENGLAND CONSULTING GROUP IN WESTPORT CONN WE'RE NOT SURPRISED THAT THEY'RE LOSING MARKET SHARE WE'RE ONLY SURPRISED THAT THEY CONTINUE TO RAISE PRICES TAMBRANDS HOWEVER PLAYS DOWN ITS CURRENT PROBLEMS THE COMPANY SAYS THAT ITS MAJOR COMPETITORS ALL INCREASED PRICES WITHIN THE PAST 12 MONTHS AND THAT IT MERELY FOLLOWED IN MARCH IT BLAMES ITS LOSS OF DOLLAR SHARE PARTLY ON GROWING SALES OF LARGER PACKAGES WHICH RESULT IN A LOWER PRICE PER TAMPON ALSO HURTING SALES IN THE FIRST QUARTER THE COMPANY CUT ITS TOTAL MARKETING SELLING AND PROMOTIONAL EXPENSES BY 25 DURING THE QUARTER TO 404 MILLION AND ITS US ADVERTISING SPENDING WAS PARTICULARLY HARD HIT THE COMPANY SAYS IT IS PLANNING TO INTRODUCE AN AD CAMPAIGN CREATED BY THE BBDO AD AGENCY IN NEW YORK WITHIN THE NEXT FEW MONTHS AND THUS SCALED BACK ON ITS OLD CAMPAIGN DURING THE REST OF THE YEAR THE COMPANY SAYS IT WILL BE FOCUSING ITS AD SPENDING IN SUCH KEY MARKETS AS THE US THE UK AND FRANCE FOR THE YEAR IT EXPECTS TOTAL MARKETING EXPENSES TO BE COMPARABLE TO LAST YEAR'S FIGURES THE COMPANY IS ALSO COUNTING ON A SMALLER PACKAGEA BOX WITH ONLY 20 TAMPONS PRICED BETWEEN 299 AND 329TO INCREASE FUTURE SALES IT'S A QUESTION OF THE TIMING OF PURCHASES SAYS PAUL E KONNEY A SENIOR VICE PRESIDENT AT TAMBRANDS IF THE CONSUMER DOESN'T SEE A PROMOTION ON THE PRODUCT SHE'S LIKELY TO WAIT A COUPLE OF WEEKS BUT PUNDITS SAY SOME OF TODAY'S PENNYPINCHING SHOPPERS MAY HAVE FLED FOR GOOD THEY'RE KILLING THE GOOSE THAT LAYS THE GOLDEN EGG SAYS A FORMER TAMBRANDS EXECUTIVE IT'S VERY EASY TO LOSE SHARE AND VERY DIFFICULT AND VERY EXPENSIVE TO GET IT BACK INDEED A CONSUMER SURVEY COMMISSIONED RECENTLY BY LEHMAN BROTHERS CONFIRMED THAT PRICE IS AN IMPORTANT CONSIDERATION FOR MANY WOMEN IN TAMPON SELECTION THIRTY PERCENT OF 700 WOMEN WHO PARTICIPATED IN THE TELEPHONE SURVEY SAID THEY WOULD SWITCH BRANDS IF THE PRICE OF THEIR REGULAR TAMPON BRAND INCREASED 31 SAID THEY WOULD SWITCH BRANDS IF THE NUMBER OF UNITS PER BOX FELL BUT THE PRICE STAYED THE SAME EVEN VERY LOYAL CONSUMERS WILL EVENTUALLY TURN AWAY FROM AN OVERPRICED PRODUCT I STARTED WITH TAMPAX AND THAT'S WHAT I'M COMFORTABLE WITH SAYS CAREN GORDON A 24YEAROLD LAW STUDENT AT BOSTON UNIVERSITY I'D PAY 1 MORE OR MAYBE EVEN 150 BUT ONCE IT STARTS GETTING RIDICULOUS I'D PROBABLY HAVE TO SWITCH TAMBRANDS' QUARTERLY NET INCOME RELEASED LATE TUESDAY WAS LARGELY IN LINE WITH EXPECTATIONS BUT NEWS OF THE COMPANY'S WEAKERTHANEXPECTED US TAMPON SALES AND REDUCED SPENDING ON MARKETING PROMPTED A NEW ROUND OF NUMBERSCRUNCHING BY WALL STREET ANALYSTS MS AUSTIN OF LEHMAN BROTHERS CHOPPED HER 1993 EARNINGS ESTIMATE FOR TAMBRANDS TO 305 A SHARE FROM 340 GOLDMAN SACHS & CO ANALYST JACK SALZMAN SAYS HE CUT HIS RATING ON TAMBRANDS TO MARKET UNDERPERFORMER NOBODY AT THE COMPANY SEEMS TO KNOW WHAT IS GOING ON SAYS ANDREW SHORE AN ANALYST AT PAINEWEBBER INC THIS IS A COMPANY THAT IS LOSING SHARE TO ALL OF ITS COMPETITORS JUST LAST MONTH THE COMPANY AFFIRMED ITS 15 ANNUAL EARNINGS GROWTH TARGET AT A CLOSEDDOOR MEETING WITH ANALYSTS BUT THESE DAYS THE COMPANY IS KEEPING MUM ON ITS PROSPECTS FOR THE FULL YEAR WE'RE NOT GOING TO FORECAST OUR EARNINGS ANY MORE SAYS TAMBRANDS' MR KONNEY IT ONLY GETS US IN TROUBLE TAMPAX'S PRICE INCREASES IN RECENT YEARS HAVE CREATED OPPORTUNITIES FOR SUCH BRANDS AS PLAYTEX AND OB 9304290005 930429 OTC FOCUS TECHNOLOGY STOCKS PUSH INDEX HIGHER BUT HEALTH CARE ISSUES LOSE GROUND BY CAITLIN MOLLISON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NASDAQ STOCKS DREW THEIR SUSTENANCE FROM RENEWED VIGOR IN THE TECHNOLOGY SECTOR WHICH DROVE PRICES HIGHER FOR THE SECOND CONSECUTIVE SESSION BUT HEALTH CARE STOCKS ERASED TUESDAY'S PROGRESS AFTER PRESIDENT CLINTON DENIED SUGGESTIONS THAT HIS HEALTH CARE OVERHAUL PLAN BE DELAYED THE NASDAQ COMPOSITE INDEX CLIMBED 564 POINTS OR 087 TO 65816 ADVANCERS OUTRAN RETREATING ISSUES BY 1410 TO 1188 TRADING WAS RELATIVELY SEDATE AND TOTAL NASDAQ NATIONAL MARKET SYSTEM VOLUME WAS 182710000 SHARES DOWN FROM 202180000 ON TUESDAY JOSEPHTHAL LYON & ROSS MARKET TECHNICIAN SCOTT BLEIER SAID INVESTORS WERE LOOKING FOR BARGAINS YESTERDAY IN THE TECHNOLOGY GROUP WHICH EXPERIENCED A TECHNICAL BOUNCE HE SAID HE IS SEEING A ROTATION BACK INTO THESE STOCKS AS THEY HAD GOTTEN MASSACRED THE BIG BOARD ENDED MIXED WITH THE DOW JONES INDUSTRIAL AVERAGE EDGING DOWN 243 OR 007 TO 341350 THE INDUSTRIAL AVERAGE HAD GIVEN UP ABOUT 20 POINTS INTRADAY ON PROGRAM SELLING AN EARLY DROP IN EASTMAN KODAK'S SHARES PRESSURED BIG BOARD PRICES IN THE MORNING BUT THE STOCK RETOOK SOME GROUND AS THE SESSION WENT ON THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX DROPPED 003 POINT OR 001 TO 24190 BUT THE STANDARD & POOR'S 500STOCK INDEX ROSE 001 TO 43802 AND ADVANCING STOCKS TOPPED LOSERS 987 TO 917 ANALYSTS SAY THAT THE OTC MARKET IS STILL IN THE MIDST OF A CORRECTION AFTER PEAKING EARLIER IN THE YEAR THIS CORRECTION IS NORMAL AND HEALTHY SAID JOSEPHTHAL'S MR BLEIER THE MARKET TECHNICIAN BELIEVES THE NASDAQ 100 INDEX A BAROMETER OF THE MARKET'S LARGEST NONFINANCIAL STOCKS CAN MOVE 10 TO 15 HIGHER IN A SUMMER RALLY WHICH HE THINKS MIGHT ALREADY HAVE BEGUN YESTERDAY THE 100 INDEX ROSE 1012 POINTS OR 15 TO 67932 MR BLEIER THINKS THE INDEX COULD HIT 700 IN THE NEAR TERM MR BLEIER ADDED THAT ALTHOUGH MEDICALRELATED ISSUES GAVE BACK SOME OF TUESDAY'S IMPRESSIVE GAINS HE THINKS THEY WILL REGAIN STRENGTH AS UNCERTAINTY OVER THE PLANNED OVERHAUL OF THE NATION'S HEALTH CARE SYSTEM BEGINS TO SUBSIDE LEADERS IN THE TECHNOLOGY SECTOR FARED ESPECIALLY WELL MICROSOFT ROSE 3 1/2 TO 86 THE COMPANY SAID IT HAD REACHED AN AGREEMENT IN ITS SOFTWARE PIRACY LAWSUIT AGAINST ITS FORMER ORIGINALEQUIPMENT MANUFACTURER LICENSEE ZNIX CO ZNIX'S PRESIDENT AND THREE OF ITS DISTRIBUTORS APPLIED MATERIALS JUMPED 1 7/8 TO 40 5/8 THE SEMICONDUCTOR FIRM SAID IT HAS SHIPPED ITS 100TH ENDURA PVD A PHYSICAL VAPOR DEPOSITION SYSTEM USED IN MAKING SEMICONDUCTORS ALSO HIGHER WAS INTEL WHICH ROSE 2 1/2 TO 94 1/2 IN ACTIVE TRADING ADOBE SYSTEMS INCREASED 4 7/8 TO 55 BMC SOFTWARE RALLIED 3 1/2 TO 51 LOTUS DEVELOPMENT ADDED 1 1/8 TO 26 1/8 AND APPLE COMPUTER SHOT 1 1/8 HIGHER TO 51 3/8 CIRRUS LOGIC ROSE 1 3/8 TO 15 7/8 AFTER PLUMMETING 6 TUESDAY AFTER A DISAPPOINTING FOURTHQUARTER EARNINGS REPORT ALTRON SOARED 2 1/2 TO 11 1/2 PRUDENTIAL SECURITIES INITIATED COVERAGE OF THE MANUFACTURER OF ELECTRONIC PRODUCTS WITH AN AGGRESSIVE BUY RATING SEVERAL STOCKS SEEMED TO TAKE LITTLE NOTICE OF THEIR COMPANIES' EARNINGS REPORTS TAPE DRIVE MANUFACTURER REXON LEAPED 1 3/8 TO 6 1/8 AFTER POSTING LOWER FISCAL SECONDQUARTER NET INCOME OF 10 CENTS A SHARE IT EARNED 36 CENTS IN THE YEARAGO PERIOD BEL FUSE A MAKER OF ELECTRONIC PARTS SANK 2 TO 14 1/4 DESPITE REPORTING FIRSTQUARTER EARNINGS OF 28 CENTS A SHARE COMPARED WITH 20 CENTS A YEAR AGO ON THE UP SIDE EMPI INC A MAKER OF BIOMEDICAL DEVICES ROCKETED 4 1/2 TO 44 AFTER ITS FIRSTQUARTER EARNINGS OF 46 CENTS A SHARE CAME IN ABOVE THE 17 CENTS REPORTED A YEAR EARLIER THE BANK AND OTHER FINANCE GROUP WAS MOSTLY HIGHER NBT BANCORP ROSE 1 TO 17 1/4 BSB BANCORP MOVED UP 1 1/2 TO 32 1/2 BAYBANKS JUMPED 1 1/4 TO 44 AND BOATMEN'S BANCSHARES ADDED 1 3/8 TO 58 7/8 ELSEWHERE DAY RUNNER SLIPPED 1 1/2 TO 8 3/4 THE MAKER OF PERSONAL ORGANIZERS REPORTED LATE TUESDAY THAT ITS FIRSTQUARTER SALES FELL AND ADDED THAT ITS OPERATING NET WAS SEVEN CENTS A SHARE COMPARED WITH NET INCOME OF EIGHT CENTS A YEAR EARLIER HERBALIFE INTERNATIONAL MOVED 1 5/8 HIGHER TO 10 3/4 AFTER REPORTING IMPROVED FIRSTQUARTER RESULTS OF 32 CENTS A DILUTED SHARE COMPARED WITH 14 CENTS A YEAR EARLIER HERBALIFE DISTRIBUTES AND MARKETS WEIGHTCONTROL PRODUCTS HEALTH AND NUTRITIONAL SUPPLEMENTS AS WELL AS SKIN AND HAIR CARE PRODUCTS GIBRALTAR PACKAGING JUMPED 1 TO 7 1/4 ON FISCAL THIRDQUARTER EARNINGS OF 11 CENTS A SHARE THE MAKER OF PRINTED PAPERBOARD PACKAGING EARNED TWO CENTS A SHARE IN THE YEAREARLIER QUARTER 9304290004 930429 NOEL LOWERS BID TO BUY BELDING NEW YORK BELDING HEMINWAY CO SAID NOEL GROUP INC HAS REDUCED ITS OFFER TO ACQUIRE THE THREADS AND FABRICS COMPANY TO 3025 A SHARE OR ABOUT 59 MILLION NOEL GROUP HAD REACHED AN AGREEMENT IN PRINCIPLE TO ACQUIRE BELDING FOR 3450 A SHARE OR ABOUT 67 MILLION BELDING HEMINWAY HAS ABOUT 1950000 SHARES OUTSTANDING BELDING SAID NOEL REDUCED THE OFFER AFTER PERFORMING DUE DILIGENCE IT SAID IT WILL CONSIDER NOEL'S REVISED PROPOSAL AT ITS BOARD MEETING MAY 5 BELDING SHARES CLOSED YESTERDAY AT 2750 DOWN 375 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9304290003 930406 BOARD OF CONTRIBUTORS CLINTON'S REVENUE MIRAGE BY MARTIN FELDSTEIN BY ANY REASONABLE MEASURE OF ECONOMIC DAMAGE PER DOLLAR OF ADDITIONAL TAX REVENUE THE CLINTON PLAN FLUNKS THE BASIC TEST OF AN ACCEPTABLE TAX CHANGE MR CLINTON'S PROPOSAL TO RAISE THE MARGINAL TAX RATES OF HIGHINCOME INDIVIDUALS BY NEARLY 40 WOULD HURT INCENTIVES WEAKEN THE ECONOMY AND WASTE INVESTMENT DOLLARS CONTRARY TO THE GOVERNMENT'S ESTIMATES THE EXTRA REVENUE THAT WOULD RESULT IS FAR TOO SMALL TO JUSTIFY THESE HARMFUL EFFECTS IF WEALTHY TAXPAYERS RESPOND TO THE BIG JUMP IN THEIR TAX RATES BY REDUCING THEIR TAXABLE INCOMES BY ONLY 10 MORE THAN TWOTHIRDS OF THE ADMINISTRATION'S PROJECTED REVENUE GAIN WOULD DISAPPEAR THE MASSIVE AND DAMAGING INCREASE IN MARGINAL TAX RATES WOULD END UP PRODUCING ONLY ABOUT 7 BILLION IN EXTRA TAX REVENUE WHILE PERMANENTLY HURTING THE ECONOMY UNFORTUNATELY CONGRESS AND THE PUBLIC ARE BEING MISLED BY OFFICIAL ASSERTIONS THAT THE HIGHER TAX RATES WOULD PRODUCE ABOUT 25 BILLION A YEAR OF ADDITIONAL REVENUE IF CONGRESS UNDERSTOOD HOW LITTLE REVENUE WOULD ACTUALLY RESULT FROM THE PRESIDENT'S TAX PROPOSAL THEY WOULD UNDOUBTEDLY REJECT IT AND ASK THE PRESIDENT TO COME UP WITH A NEW WAY TO REDUCE THE DEFICIT AND DO LESS HARM TO THE ECONOMY OFFICIAL REVENUE ESTIMATES ARE PRODUCED BY THE STAFFS AT TREASURY AND THE CONGRESSIONAL JOINT COMMITTEE ON TAXATION THESE ESTIMATES ARE BASED ON THE CONVENTION OF IGNORING THE ADVERSE EFFECT OF HIGHER TAX RATES ON NATIONAL INCOME AMAZINGLY THE REVENUE ESTIMATORS ASSUME THAT A JUMP IN MARGINAL TAX RATES OF NEARLY 40 WON'T CAUSE ANYONE TO WORK LESS OR TO INVEST IN LESS PRODUCTIVE WAYS THE GOVERNMENT'S REVENUEESTIMATING STAFFS DISTORT CONGRESS'S OF NEARLY 40 WON'T CAUSE ANYONE TO WORK LESS OR TO INVEST PERCEPTION OF WHAT THEY DO BY CLAIMING THAT THEIR REVENUE ESTIMATES TAKE BEHAVIORAL RESPONSES INTO ACCOUNT IN TRUTH ALTHOUGH THEY DO MAKE SOME ALLOWANCE FOR PURE TAX AVOIDANCE BEHAVIOR LIKE CONVERTING WAGES INTO UNTAXED FRINGE BENEFITS ANY BEHAVIOR THAT REDUCES NATIONAL INCOME IS EXPLICITLY IGNORED IN ACTUAL PRACTICE THE BIG JUMP IN MARGINAL TAX RATES WOULD MAKE SOME HIGHINCOME INDIVIDUALS WORK FEWER HOURS AND TAKE LONGER VACATIONS THIS WOULD BE PARTICULARLY TRUE AMONG THE SELFEMPLOYED PROFESSIONALS AND TWOEARNER COUPLES SOME SMALL BUSINESSES WOULD INVEST LESS AND EARN SMALLER PROFITS OVER TIME THE INCREASED USE OF TAX SHELTERS AND OTHER FORMS OF TAX AVOIDANCE WOULD REDUCE THE GROWTH OF GROSS DOMESTIC PRODUCT AND RESULTING INVESTMENT INCOME ALL OF THESE EFFECTS ARE EXPLICITLY IGNORED BY THE GOVERNMENT REVENUE ESTIMATORS THE REVENUE ESTIMATORS ALSO SUBSTANTIALLY UNDERSTATE THE REVENUE LOSSES THAT WOULD RESULT FROM THE TYPES OF TAXAVOIDANCE BEHAVIOR THAT THEY DO TAKE INTO ACCOUNT THERE IS NO WAY TO BE CERTAIN ABOUT THE EXTENT OF THIS UNDERSTATEMENT BECAUSE THE REVENUE ESTIMATORS OUTRAGEOUSLY REFUSE TO TELL EVEN THE MEMBERS OF CONGRESS OR THE STAFF OF THE CONGRESSIONAL BUDGET OFFICE THE AMOUNT OF THE BEHAVIORAL RESPONSE THAT IS BUILT INTO THEIR ESTIMATES THE CBO WHICH IS LOOKED TO BY MANY MEMBERS OF CONGRESS AS AN INDEPENDENT AND AUTHORITATIVE SOURCE OF ECONOMIC ESTIMATES DOES NOT MAKE ITS OWN ESTIMATES OF THE REVENUE EFFECTS OF PROPOSED TAX CHANGES RATHER IT IS FORCED TO ACCEPT THE INCORRECT REVENUE ESTIMATES WITHOUT EVEN KNOWING WHAT THEY REALLY MEAN A RECENT STUDY AT THE NATIONAL BUREAU OF ECONOMIC RESEARCH NBER INDICATES THAT THE REVENUE EFFECTS OF THE TAXAVOIDANCE BEHAVIOR ASSUMED BY THE GOVERNMENT ARE VERY SMALL IN THAT STUDY DANIEL FEENBERG AND I CALCULATED THE REVENUE EFFECT OF THE CLINTON TAX PLAN UNDER DIFFERENT ASSUMPTIONS ABOUT HOW TAXPAYERS RESPOND TO HIGHER TAX RATES OUR CALCULATIONS WERE BASED ON A COMPUTER ANALYSIS OF NEARLY 100000 ANONYMOUS INDIVIDUAL TAX RETURNS AND OUR METHOD WAS VERY SIMILAR TO THE ONE USED BY THE GOVERNMENT REVENUE ESTIMATORS OUR STUDY INDICATES THAT THE CLINTON PLAN WOULD PRODUCE 26 BILLION A YEAR OF ADDITIONAL REVENUE IF THERE WERE NO BEHAVIORAL RESPONSE AT ALL IN CONTRAST WE CALCULATE THAT IF THE SHARP JUMP IN MARGINAL TAX RATES CAUSES NET TAXABLE INCOMES TO FALL BY JUST 10 OF PREVIOUS GROSS INCOME THE CLINTON PLAN WOULD PRODUCE TAX REVENUE OF LESS THAN 7 BILLION A YEAR A MODEST 10 REDUCTION IN TAXABLE INCOME DESTROYS ABOUT THREEQUARTERS OF THE REVENUE THAT WOULD BE COLLECTED IF TAXPAYERS DID NOT REDUCE THEIR TAXABLE INCOMES SINCE THE 26 BILLION RISE IN TAX REVENUE THAT WE CALCULATE ON THE ASSUMPTION OF NO BEHAVIORAL RESPONSE IS VERY SIMILAR TO THE 25 BILLION ESTIMATES PRODUCED BY THE TREASURY AND CONGRESSIONAL STAFFS ANY BEHAVIORAL RESPONSE THAT THEY ASSUME MUST BE VERY SMALL THE EXACT AMOUNT OF THEIR ASSUMED BEHAVIORAL RESPONSE WILL REMAIN A MYSTERY UNTIL THE OFFICIAL REVENUE ESTIMATORS REVEAL HOW MUCH REVENUE THEY WOULD PREDICT WITH NO BEHAVIORAL RESPONSE READERS CAN TEST FOR THEMSELVES THE PLAUSIBILITY OF THE NBER CALCULATIONS CONSIDER WHAT WOULD HAPPEN UNDER THE CLINTON PLAN TO THE TAX LIABILITY OF A COUPLE WITH TAXABLE INCOME OF 180000 THE RISE IN THE MARGINAL INCOME TAX RATE TO 36 FROM 31 ON INCOME OVER 140000 AND THE EXTENSION OF THE 29 MEDICARE PAYROLL TAX RATE TO INCOME OVER 135000 WOULD REQUIRE SUCH A COUPLE TO PAY 3305 IN ADDITIONAL TAXES IF THEY DID NOT CHANGE THEIR BEHAVIOR BUT IF THEY RESPONDED TO THE JUMP IN THEIR MARGINAL TAX RATE TO 389 FROM 31 BY REDUCING THEIR TAXABLE INCOME FROM TO 162000 FROM 180000 THEY WOULD ACTUALLY PAY 3697 LESS IN TAXES UNDER THE CLINTON PLAN THAN THEY DO UNDER CURRENT LAW OR CONSIDER A VERY HIGH INCOME TAXPAYER WITH 400000 OF TAXABLE INCOME AN EXTRA 36 TAX ON INCOME OVER 250000 WOULD RAISE THE MARGINAL TAX RATE TO 425 FROM 31 SUCH A COUPLE WOULD PAY 26085 IN ADDITIONAL TAX UNDER THE CLINTON PLAN IF THEY DID NOT CHANGE THEIR BEHAVIOR BUT ONLY 9085 IN ADDITIONAL TAX IF THEY CUT THEIR TAXABLE INCOME BY 10 WALL STREET JOURNAL REPORTER ALAN MURRAY REPORTED LAST WEEK THAT SOME OF MR CLINTON'S TOP ECONOMIC ADVISERS ACKNOWLEDGE THAT MY CRITICISMS CANNOT BE DISMISSED WHY THEN DO THE GOVERNMENT REVENUE ESTIMATORS BASE THEIR CALCULATIONS ON THE OBVIOUSLY FALSE ASSUMPTION THAT TAXPAYERS DO NOT ALTER THEIR WORK AND DO NOT CHANGE THEIR BEHAVIOR IN OTHER WAYS THAT REDUCE NATIONAL INCOME AND THEREFORE TAX REVENUE SOME CRITICS OF THE REVENUE ESTIMATORS CHARGE THAT THIS PROCEDURE REFLECTS THE STAFFS' POLITICAL BIAS IN FAVOR OF RAISING TAX RATES BY MINIMIZING THE ESTIMATED REVENUE EFFECT OF TAXPAYERS' BEHAVIORAL RESPONSES THEY OVERSTATE THE REVENUE GAINS FROM HIGHER TAX RATES AND OVERSTATE THE REVENUE LOSSES FROM CUTTING TAX RATES THIS HAS BECOME PARTICULARLY IMPORTANT SINCE THE BUDGET ENFORCEMENT ACT OF 1990 REQUIRED THAT ANY PROPOSED REDUCTION IN TAX REVENUE BE PAID FOR WITH EITHER AN OFFSETTING TAX INCREASE OR A DECREASE IN ENTITLEMENT SPENDING IT HAS MADE THE STAFF OF THE JOINT COMMITTEE ON TAXATION THE SOLE ARBITER OF THE SIZES OF THESE TAX CHANGES ITS INCORRECT METHOD HAS BLOCKED A REDUCTION IN THE CAPITALGAINS TAX AND THE EXPANSION OF INDIVIDUAL RETIREMENT ACCOUNTS I AM WILLING TO BELIEVE THAT THE METHOD USED BY THE TREASURY AND CONGRESSIONAL STAFFS REFLECTS CONCEPTUAL ERRORS RATHER THAN AN INSTITUTIONAL BIAS IN FAVOR OF HIGHER TAXES WHATEVER THE REASON FOR THEIR CURRENT APPROACH IT IS CLEAR THAT IT PRODUCES REVENUE ESTIMATES THAT ARE GROSSLY WRONG AND THAT IT IS IN NEED OF CHANGE THERE IS A USEFUL PRECEDENT FOR SUCH A CHANGE BACK IN THE LATE 1970S TAXESTIMATING PROCEDURES ASSUMED THAT TAXES ON CAPITAL GAINS HAD NO EFFECT ON TAXPAYERS' DECISIONS TO SELL STOCK AND REALIZE GAINS ESTIMATORS EVENTUALLY CONCLUDED THIS WAS A BAD ASSUMPTION THAT GROSSLY OVERESTIMATED THE REVENUE COST OF LOWER TAX RATES ON CAPITAL GAINS THEIR CURRENT PROCEDURE ALLOWS FOR A SUBSTANTIAL CHANGE IN REALIZATIONS OF CAPITAL GAINS WHEN THEY ESTIMATE THE REVENUE EFFECTS OF CHANGES IN THE CAPITALGAINS TAX THE TIME HAS COME FOR A MORE THOROUGHGOING REFORM OF THEIR GENERAL REVENUEESTIMATING PROCEDURE THE KEY TO APPROPRIATE TAX POLICY IS RELIABLE ESTIMATES OF THE ACTUAL LONGRUN REVENUE EFFECTS OF CHANGES IN TAX RULES AND TAX RATES WITHOUT THAT THERE CANNOT BE GOOD TAX POLICY OR PUBLIC CONFIDENCE IN THE PROCESS OF TAX LEGISLATION ALTHOUGH THE MEMBERS OF CONGRESS HAVE RECENTLY APPROVED THE BROAD OUTLINES OF THE PRESIDENT'S BUDGET THEY ARE NOT BOUND BY THAT VOTE TO ANY OF ITS SPECIFIC DETAILS DURING THE NEXT SEVERAL MONTHS THEY MUST ENACT SPECIFIC CHANGES IN TAX RULES AND SPENDING PROGRAMS EACH PART OF THE PRESIDENT'S TAX PLAN SHOULD BE EVALUATED AND COMPARED WITH A VARIETY OF ALTERNATIVES IF THE TREASURY AND THE CONGRESSIONAL STAFFS DO PRESENT HONEST ESTIMATES OF THE TAX REVENUE CONSEQUENCES OF THE PRESIDENT'S TAX PLAN THERE IS NO DOUBT THAT CONGRESS WILL REJECT IT THERE IS STILL TIME TO DEVELOP ALTERNATIVES THAT REDUCE THE DEFICIT AT LEAST AS MUCH AS THE CLINTON PLAN WHILE DOING FAR LESS HARM TO THE AMERICAN ECONOMY MR FELDSTEIN FORMER CHAIRMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS IS A PROFESSOR OF ECONOMICS AT HARVARD AND PRESIDENT OF THE NATIONAL BUREAU OF ECONOMIC RESEARCH SEE RELATED LETTER LETTERS TO THE EDITOR TAX CUT ROADBLOCKS WSJ APRIL 29 1993 9304060120 9304290002 930429 ART WORLD ANTICIPATES HIGHER PRICES AS CRUCIAL SPRING AUCTION SEASON BEGINS BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE ART WORLD'S SPRING AUCTION SEASON KICKS OFF NEXT WEEK WITH THE HIGHEST EXPECTATIONS AND THE HIGHEST PRICE ESTIMATES SINCE THE ART MARKET COLLAPSED MORE THAN TWO YEARS AGO STARTING TUESDAY CHRISTIE'S INTERNATIONAL PLC AND SOTHEBY'S HOLDINGS INC WILL PUT 1630 WORKS ON THE AUCTION BLOCK OVER A 10DAY PERIOD AT THEIR FLAGSHIP SALES OF IMPRESSIONIST MODERN AND CONTEMPORARY ART THE ESTIMATED TAKE A TOTAL OF 170 MILLION TO 225 MILLION IN THE THIRD WEEK OF MAY SALES OF THE ART MARKET'S HOTTEST SECTOR LATIN AMERICAN ART ARE EXPECTED TO BRING IN ABOUT ANOTHER 25 MILLION ALTOGETHER THE THREE WEEKS OF SALES PRODUCE A DISPROPORTIONATE AMOUNT OF THE AUCTION HOUSES' ANNUAL REVENUE AND ARE A KEY INDICATOR OF THE HEALTH OF THE BROADER ART MARKET AT LAST NOVEMBER'S SALES THE BATTERED ART MARKET FINALLY GOT SOME GOOD NEWS WHEN THE 10 MILLION BARRIER FOR AN IMPRESSIONIST OR MODERN PAINTING WAS CRACKED THREE TIMES AT AUCTION IT HAD BEEN TWO YEARS SINCE A EIGHTDIGIT AUCTION PRICE NOW SOTHEBY'S HAS TWO PAINTINGS A PAUL CEZANNE STILL LIFE AND A STRIKING HENRI MATISSE PORTRAIT THAT IT PREDICTS WILL EACH BREAK THE 10MILLION BARRIER AT ARCHRIVAL CHRISTIE'S WHEN ASKED WHAT THE SECRET PRICE ESTIMATE IS FOR ITS STAR PICTURE AN EIGHTFOOTLONG CINEMATIC BLUEGREY SEASCAPE BY CLAUDE MONET MICHAEL FINDLAY SENIOR DIRECTOR OF IMPRESSIONIST AND MODERN ART SAID SAY MORE THAN 5 MILLION BUT WHEN TOLD OF SOTHEBY'S HEFTY PRICE ESTIMATES MR FINDLAY CHANGED THAT TO ABOUT 9 MILLION BUT HE WORRIED THAT SUCH A PRICE ESTIMATE THOUGH JUSTIFIED MAY DISCOURAGE BUYERS IN A STILLSHAKY MARKET WHO SAY THAT'S TOO EXPENSIVE I'M NOT GOING TO TRY FOR IT IN FACT ORCHESTRATING SALES AND CONFIDENCE IN THE ART MARKET IS A HUGE CHALLENGE FOR AUCTION HOUSE OFFICIALS PRICES HAVE FALLEN 30 TO 50 FROM THEIR HIGHS OF 1989 AND 1990 BUT ARE UP SLIGHTLY FROM A YEAR AGO THAT MEANS SELLERS ARE DEMANDING HIGHER PRICES THAN THEY WOULD HAVE GOTTEN SIX MONTHS AGO BUT BUYERS MAY FLEE AT THE FIRST SIGN OF PRICE INFLATION UNTIL RECENTLY THERE'S BEEN AN UNDERSTANDABLE RELUCTANCE TO BUY AGGRESSIVELY THERE WERE CLEAR AND CONTINUING INDICATORS THAT PRICES WERE STILL SETTLING SAID NEW YORK CONTEMPORARY ART DEALER LARRY GAGOSIAN NOW HE SAID THERE IS A FEELING THAT PRICES HAVE STABILIZED HE SAID SOME OF HIS CLIENTS A BLUECHIP ROSTER THAT HAS INCLUDED RECORD EXECUTIVE DAVID GEFFEN AND PUBLISHER SI NEWHOUSE JR SEE THIS AS A TIME TO BUY BUT WITH THE EXCEPTION OF A HANDFUL OF TOPQUALITY WORKS SUCH AS A BRUCE NAUMAN SCULPTURE AND A WILLEM DE KOONING PAINTING ON PAPER THE MATERIAL AT THE MAY SALES DREW FEW RAVES FROM DEALERS AND COLLECTORS THEA WESTREICH A NEW YORK DEALER WHO AT THE FALL AUCTIONS BOUGHT AN ANDY WARHOL PAINTING AND A MILLIONDOLLAR ALBERTO GIACOMMETTI FOR CLIENTS NAMES LESS THAN A DOZEN WORKS THAT INTEREST HER CLIENTS BUT THE AUCTION HOUSES' PRICE ESTIMATES FOR THOSE ARE RIGHT NOW IS THE TIME TO BUY THE CREAM SHE SAID ONE PLUS FOR THE ART MARKET DEALERS' FEARS OF A FIRE SALE BY FINANCIALLY STRAPPED JAPANESE COLLECTORS AND DEALERS HAVEN'T MATERIALIZED SOME IMPRESSIONIST AND MODERN PAINTINGS TAKEN HOME BY JAPANESE BUYERS AT THE HEIGHT OF THE ART BOOM ARE TRICKLING BACK TO THE US AND EUROPE BUT BANKS WHICH HAVE TAKEN POSSESSION OF SCORES OF WORKS AS COLLATERAL FOR SOURED LOANS ARE NOT WILLING TO SELL THEM AND RISK SIZABLE LOSSES HOWEVER THE CHRISTIE'S MONET IS BEING SOLD BY A JAPANESE COLLECTOR HIROSHI ISHIZUKA THE STAR LOT OF THE SPRING SEASON IS THE CEZANNE STILL LIFE OF APPLES AND A TEACUP FROM THE FAMED COLLECTION OF JAKOB GOLDSCHMIDT WHO FLED THE NAZIS BEFORE WORLD WAR II AND WAS ONLY ABLE TO TAKE PART OF HIS ART COLLECTION WITH HIM THOSE PAINTINGS WERE SOLD IN 1958 AT SOTHEBY'S FIRST BLACKTIE EVENING SALE OF THIS CENTURY TO THE EMBIRICOS SHIPBUILDING FAMILY WHICH IS SELLING THE STILL LIFE NOW THE CEZANNE SOLD IN 1958 FOR 252000 SOTHEBY'S MATISSE IS ONE A SERIES OF ALMOST LIFESIZE FIGURES THE ARTIST PAINTED IN MOROCCO AROUND 1912 AND IT MAY BENEFIT FROM THE MATISSE MANIA GENERATED BY THE BLOCKBUSTER EXHIBITION LAST FALL AT NEW YORK'S MUSEUM OF MODERN ART WHILE THOSE TWO PAINTINGS AT SOTHEBY'S HAVE THE HIGHEST PRICE ESTIMATES A TRIO OF WORKS THAT HAVE BEEN OFF THE MARKET FOR DECADES ARE GENERATING MUCH EXCITEMENT AT CHRISTIE'S A CAMILLE PISSARRO STREET SCENE OF MONTMARTRE THAT SOLD IN 1977 FOR 277000 IS BEING REMOVED FROM THE TRAVELING EXHIBITION OF HIS WORK AT THE PHILADELPHIA MUSEUM OF ART IT'S ON THE MARKET WITH AN ESTIMATE OF 2 MILLION TO 3 MILLION AN EARLY ROY LICHTENSTEIN POP ART PAINTING OF A PAINT STROKE IS GENERATING BIG INTEREST AMONG EUROPEAN COLLECTORS AND A JACKSON POLLACK DRIP PAINTING FROM 1948 IS ESTIMATED TO SELL FOR 15 MILLION TO 2 MILLION WE'VE LEARNED OUR LESSON FROM THE ART SLUMP AND HAVE GIVEN MANY ART WORKS CONSERVATIVE PRICE ESTIMATES SAID DIANE UPRIGHT HEAD OF CHRISTIE'S CONTEMPORARY ARARTMENT THIS TIME AROUND NOTED SELLERS INCLUDE THE DIA FOUNDATION FRENCH FILM STAR ALAIN DELON THE DETROIT INSTITUTE OF ART THE BROOKLYN MUSEUM THE ESTATES OF NELSON ROCKEFELLER AND RICHARD RODGERS AND FREDERICK HUGHES ANDY WARHOL'S MANAGER AND EXECUTOR WHO IS SELLING WORKS FROM HIS PERSONAL COLLECTION MR HUGHES'S 10 WARHOLS WILL GO ON THE BLOCK THE EVENING OF THE FIRST SALE AT SOTHEBY'S THE SALE INCLUDES A BOY FOR MEG AND TWO WORKS FEATURING ELVIS PRESLEY MR HUGHES'S WARHOLS ARE ESTIMATED TO BRING 37 MILLION TO 5 MILLION THE LARGE NUMBER OF WARHOL WORKS CURRENTLY FOR SALE BOTH AT AUCTION AND FROM DEALERS HAS SPURRED CONCERN THAT THE WARHOL MARKET WILL BE OVERWHELMED EVEN THOUGH HE IS A HOUSEHOLDNAME ARTIST MR GAGOSIAN THE NEW YORK ART DEALER SAID IT COULD BE A PROBLEM IN THE SHORTTERM BUT THE VALUE OF THE ART REMAINS 9304290001 930429 WORKPLACE DAUGHTERS AT WORK TRADE PIZZA FUTURES LOAD BOXES AND CHASE BIGGER DREAMS A WALL STREET JOURNAL NEWS ROUNDUP SCORES OF THE NATION'S SCHOOLGIRLS PLAYED HOOKY YESTERDAY WITH THE CONNIVANCE OF PARENTS TEACHERS AND A CROSSSECTION OF CORPORATE AMERICA IT WAS TAKE OUR DAUGHTERS TO WORK DAY SPONSORED BY THE MS FOUNDATION FOR WOMEN AND MANY MOTHERS AND FATHERS DID JUST THAT THE AIM OF THE DAY WHICH THE FOUNDATION CALLED A NATIONAL PUBLIC EDUCATION PROGRAM WAS TO MAKE GIRLS VISIBLE VALUED AND HEARD HOW WELL THE DAY SUCCEEDED IN THAT AIM IS DEBATABLE THE MS FOUNDATION FOR ONE SAID IT WAS DELIGHTED FOR THE FIRST TIME GIRLS WERE GIVEN SERIOUS ATTENTION AND RESPECT ABOUT THEIR LIVES SAID MARIE WILSON THE FOUNDATION'S PRESIDENT THEY ASKED REAL QUESTIONS ABOUT WORK AND THEY GOT REAL ANSWERS HOWEVER BEVERLY LAHAYE PRESIDENT OF CONCERNED WOMEN FOR AMERICA WHICH CALLS ITSELF THE NATION'S LARGEST NONPARTISAN POLITICALLY ACTIVE WOMEN'S ORGANIZATION SAID NOTICEABLY MISSING FROM THE MS FOUNDATION'S DEFINITION OF WORKPLACE IS THE HOME WHERE MOTHERS DO THEIR MOST IMPORTANT WORK THIS IS ANOTHER EXAMPLE OF FEMINISTS DENIGRATING MOTHERHOOD AND THE CHOICE OF MANY WOMEN TO REMAIN IN THE HOME THERE IS NO QUESTION THAT THE DAY WAS FAR FROM UNIVERSALLY OBSERVED FOR EXAMPLE DOW JONES & CO PUBLISHERS OF THE WALL STREET JOURNAL DIDN'T SPONSOR ANY SPECIAL EVENTS YESTERDAY IT'S NOT UNUSUAL FOR EMPLOYEES TO BRING THEIR KIDS TO THE OFFICE ON OTHER DAYS OF THE YEAR A SPOKESMAN SAID AND WALL STREET JOURNAL REPORTERS AROUND THE COUNTRY FOUND SPOTTY OBSERVANCE WITH MUCH OF THE ACTIVITY CONCENTRATED ON THE TWO COASTS IN COLORADO LYNDA DREILING CHIEF FINANCIAL OFFICER FOR STAODYN INC A LONGMONT COLO MAKER OF MEDICAL EQUIPMENT SAID SHE THOUGHT THE IDEA WAS WONDERFUL BUT HAD ONLY HEARD ABOUT IT ON THE RADIO WHILE DRIVING TO WORK YESTERDAY MORNING HAD I KNOWN I CERTAINLY MAY HAVE DONE IT SAID MS DREILING WHO HAS A 15YEAROLD DAUGHTER SHE ADDED THAT SHE DIDN'T SEE ANYONE ELSE AT HER OFFICE BRINGING IN THEIR CHILDREN BETH MOHLER A SPOKESWOMAN FOR THE RICHARDSON INDEPENDENT SCHOOL DISTRICT NORTH OF DALLAS SAID A QUICK SURVEY OF DISTRICT SCHOOLS INDICATED THAT A FEW BUILDINGS HAD ONE OR TWO STUDENTS WHO HAD GONE TO WORK WITH THEIR PARENTS BUT SOME SCHOOLS DIDN'T KNOW OF ANYONE PARTICIPATING MS MOHLER SAID PARTICIPATION WAS ALSO SCATTERED AMONG MIDWEST SCHOOLS THE DES MOINES IOWA SCHOOL DISTRICT FOR EXAMPLE DIDN'T PARTICIPATE EVEN THOUGH SOME SCHOOLS IN THE PAST HAVE HAD STUDENTS AND PARENTS SWAP ROUTINES FOR A DAY IN CHICAGO HOWEVER AT THE MERCANTILE EXCHANGE ABOUT 150 GIRLS CROWDED INTO THE CATTLE PIT TO TRADE MOCK PIZZA FUTURES CONTRACTS WITH THEIR HOARSE PARENTS YELLING ADVICE FROM THE EDGE OF THE PIT PRICES RALLIED AMID A REPORT THAT AN EXODUS OF COWS FROM WISCONSIN HAD CREATED A SHORTAGE OF CHEESE FOR PIZZA I TOLD MY DAUGHTER TO TRY TO BE INSTINCTIVE SAID MICHAEL G MININNI WHO TRADES STANDARD & POOR'S 500 STOCK INDEX FUTURES CONTRACTS WATCHING 12YEAROLD CARINE'S HAND SIGNALS TO THE OTHER GIRLS HE CALCULATED SHE WOULD HAVE REAPED ROUGHLY 6000 UNDER THE SAME CIRCUMSTANCES IN HIS PIT I WANT HER TO TRADE FOR ME HE SAID BEAMING BOSTON EDISON CO PLAYED HOST TO ABOUT 80 GIRLS THE COMPANY HOWEVER DIDN'T WANT THIS TO BE JUST A FEMININE DAY A MOTHERDAUGHTER THING AS IT WERE SAID SHEILA EPPOLITO SPOKESWOMAN FOR THE UTILITY SO FATHERS WERE ENCOURAGED TO BRING IN THEIR DAUGHTERS ONE COMPANY MANAGER STEPHEN MURPHY LEARNED THAT HIS DAUGHTER LIKED WHAT HE DOES AFTER GETTING A PEEK AT A FEW MANHOLE CHORES HER FATHER SUPERVISES NINEYEAROLD KELLY MURPHY SAID I DON'T WANT A JOB WHERE I HAVE TO WEAR A HARD HAT I PREFER TO DO WHAT MY FATHER DOES KIND OF TAKE IT EASY IN THE OFFICE AT THE HEADQUARTERS OF MATTEL INC IN EL SEGUNDO CALIF ABOUT 55 DAUGHTERS OF THE TOY MAKER'S EMPLOYEES GOT TO SEE ONE OF THE NATION'S MOST SENIOR FEMALE EXECUTIVES IN ACTION AS PART OF THE DAY'S AGENDA THE GIRLS TOURED THE OFFICE OF JILL ELIKANN BARAD MATTEL'S PRESIDENT AND CHIEF OPERATING OFFICER AND BRIEFLY MET WITH MS BARAD WHO LEFT A STAFF MEETING TO WELCOME THEM LATER AMONG OTHER ACTIVITIES THE DAUGHTERS PARTICIPATED IN A QUESTIONANDANSWER SESSION WITH THREE OTHER SENIOR FEMALE EXECUTIVES INCLUDING THE DIRECTOR OF MARKETING FOR MATTEL'S BARBIE DOLL LINE AT THE END OF THE DAY THE MATTEL DAUGHTERS WERE SENT HOME WITH BAGS OF GOODIES INCLUDING BARBIE DOLLS AND ACCESSORIES FOR ITS PART MATTEL GOT SOME ADVICE THE DAUGHTERS OFFERED SUGGESTIONS ON DESIGNING DOLL FASHIONS ELSEWHERE IN CALIFORNIA ABOUT 40 FOX INC DAUGHTERS VISITED THE NEWS CORP UNIT'S MOVIESTUDIO LOT FOR THE DAY INCLUDED WAS A LUNCHTIME STOP DURING WHICH BEVERLY HILLS 90210 STAR IAN ZIERING SIGNED AUTOGRAPHS IN HER SPEECH TO DAUGHTERS OF FOX EMPLOYEES FOX CHILDREN'S NETWORK PRESIDENT MARGARET LOESCH TOLD THE GIRLS THE WORLD IS THEIR OYSTER I TOLD THEM GENDER IS NOT AN IMPEDIMENT IT IS NOT AN OBSTACLE MS LOESCH SAID IF YOU GO TO SCHOOL AND STUDY HARD JUST ABOUT EVERY DOOR WILL OPEN UP NOT ONE TO MISS AN OPPORTUNITY FOX ENDED THE DAY BY SHOWING THE CAPTIVE AUDIENCE TRAILERS FROM TWO OF ITS SUMMER MOVIES ONCE UPON A FOREST AND HOT SHOTS PART DEUX HOLLYWOOD STARS WERE NOWHERE TO BE SEEN AT TWO FEDERAL EXPRESS CORP FACILITIES IN VIRGINIA BUT THE 42 VISITING CHILDREN SEEMED NO LESS ENTHRALLED AS THEY WATCHED THEIR PARENTS SORT PACKAGES IN HAMPTON VA 32 GIRLS AGED NINE TO 15 YEARS OLD HEARD A PRESENTATION FROM WORKERS IN NONTRADITIONAL JOBS A MALE SECRETARY AND A 95POUND FEMALE COURIER THE FEMALE COURIER TOLD THEM THAT EVEN THOUGH PHYSICALLY SHE MAY BE SMALL AS LONG AS SHE STAYS STRONG MENTALLY SHE CAN DO BIG THINGS SAYS SHARON MANN SENIOR OPERATIONS MANAGER IN NORFOLK FEDERAL EXPRESS INVITED THREE BOYS ALONG WITH SEVEN GIRLS BECAUSE THEIR PARENTS WANTED THEIR CHILDREN TO SEE IT AND WE DIDN'T WANT TO EXCLUDE ANYONE SAYS DEBRA JOHNSON OPERATIONS MANAGER JOY HUFFMAN A 13YEAROLD WHO WANTS TO BE AN ARCHITECT HELPED HER MOTHER LOAD SOME 45 PACKAGES ON HER TRUCK FOR MY MOM IT'S HEAVY ON HER BUT SHE CAN DO IT JOY SAID IT SEEMS LIKE A LOT OF WOMEN COULD DO THIS JOB IT'S NOT JUST FOR MEN WHO ARE BUILT WITH MUSCLES AT WOLVERINE WORLD WIDE INC A SHOE MANUFACTURER BASED IN ROCKFORD MICH 35 EMPLOYEES BROUGHT THEIR DAUGHTERS TO THE WORKPLACE THEY RANGED IN AGE FROM EIGHT TO 16 AND JOINED THEIR PARENTS IN DEPARTMENTS SUCH AS ADMINISTRATION INVENTORY MERCHANDISING CUSTOMER SERVICE AND SALES ONLY PRODUCTION EMPLOYEES WERE PROHIBITED FROM HAVING THEIR DAUGHTERS ASSUME PART OF THE DAY'S WORKLOAD IT'S DIFFICULT TO HAVE A NINEYEAROLD SIT NEXT TO A RUNNING MANUFACTURING MACHINE WE WANTED TO TEST THIS CONCEPT OUT A LITTLE BIT SAID A WOLVERINE SPOKESWOMAN TONI FRALEY A 13YEAROLD FROM NEARBY COMSTOCK PARK MIDDLE SCHOOL WATCHED HER MOTHER RUTH WHO WORKS IN WOLVERINE'S ACCOUNTSPAYABLE DEPARTMENT AND SAID IT'S KIND OF INTERESTING ACTUALLY YOU HAVE TO LOOK UP ALL OF THESE DIFFERENT PAPERS AND MATCH THEM BUT I WANT TO BE AN AIR FORCE PILOT OR AN ASTRONOMER TONI SAID FURTHER THAT A SIMILAR DAY SHOULD BE SET ASIDE FOR HER BROTHERS BRIAN 16 AND CHAD NINE I THINK WE'RE CREATED EQUAL SHE SAID FOR DAUGHTERS OF UNEMPLOYED PARENTS THOSE WHO WORK A NIGHT SHIFT OR ON DANGEROUS SHOPFLOORS TAKE OUR DAUGHTERS TO WORK DAY MIGHT NOT HAVE MEANT MUCH BUT A PROGRAM SET UP BY NEW YORK CITY'S BOARD OF EDUCATION ALONG WITH THE MS FOUNDATION ALLOWED 2100 SUCH DAUGHTERS TO PARTICIPATE IN EVENTS PLANNED AROUND THE OCCASION THE GIRLS FROM 56 SCHOOLS IN NEW YORK CITY WERE SPONSORED BY PRIVATE AND PUBLIC COMPANIES PUBLIC AGENCIES AND COLLEGES THE BANK OF TOKYO FOR INSTANCE WAS HOST TO 14 GIRLS FROM MURRAY BERGTRAUM HIGH SCHOOL THE CITY'S MAGNET SCHOOL FOR BUSINESS STUDIES THE STUDENTS SPENT A DAY QUIZZING MOSTLY WOMEN SPEAKERS AT THE BANK ABOUT HOW THEY GOT THEIR JOBS WHETHER THEY LIKED THEIR WORK AND WHETHER THEY GOT ALONG WITH THEIR JAPANESE BOSSES THE GIRLS ALSO WANTED TO KNOW IF THE WOMEN SPEAKERS HAD BEEN SUBJECT TO SEXUAL HARRASMENT SAID BETH GILROY A BANKING OFFICER AND WHEN ONE WOMAN SAID YES' THEY WANTED TO KNOW IF SHE HAD SUED AT NEW YORK'S CHASE MANHATTAN BANK KATHLEEN MARSHALL A SENIOR VICE PRESIDENT IN CHARGE OF STRUCTURED FINANCE GAVE A SPEECH ON WALL STREET AND TOOK 50 GIRLS AROUND THE BANK'S TRADING FLOOR IT WASN'T AN EASY AUDIENCE EITHER MS MARSHALL SAID ONE GIRL ASKED IF SHE WAS A SECRETARY ANOTHER ASKED IF SHE WAS MARRIED THEY WERE INQUISITIVE SAID MS MARSHALL THEY WANTED TO KNOW HOW MUCH MONEY I MADE ONE WANTED TO KNOW WHETHER I WORKED ON THANKSGIVING AMONG ACTIVITIES IN WASHINGTON DC 90 EMPLOYEES AT THE DEPARTMENT OF EDUCATION BROUGHT THEIR DAUGHTERS TO WORK AND 60 OTHERS ESCORTED GIRLS FROM TWO LOCAL ELEMENTARY SCHOOLS THE DAUGHTER OF THE NATION'S CHIEF EXECUTIVE HOWEVER WENT TO SCHOOL AS USUAL ACCORDING TO PRESIDENT CLINTON DAUGHTER CHELSEA TOLD HER PARENTS WELL YOU BOTH WORK WHERE YOU LIVE I'M GOING TO SCHOOL SEVERAL HUNDRED DAUGHTERS ATTENDED ACTIVITIES AT TIME WARNER INC'S MAGAZINE GROUP AT A LUNCHEON A BIT OF A FLURRY SURROUNDED A SPECIAL GUEST IVANA TRUMP WHO CAME WITH HER DAUGHTER IVANKA ALTHOUGH JOURNALIST PARENTS MAY HAVE HOPED TO EXCITE THEIR DAUGHTERS ABOUT A CAREER IN THE MEDIA MANY OF THE GIRLS WERE APPARENTLY MORE INTERESTED IN WHAT MS TRUMP AND HER DAUGHTER WERE WEARING THAN ANYTHING ELSE ONE DAUGHTER TOOK HER MOTHER ASIDE AND POINTING TO IVANKA ASKED COULD YOU GET ME THOSE SHOES' SAID SUSAN GEISENHEIMER VICE PRESIDENT OF HUMAN RESOURCES FOR TIME INC WE MAY ALL WANT OUR DAUGHTERS TO GROW UP TO BE ASTRONAUTS BUT THEY ARE STILL INTERESTED IN SUCH THINGS 9304290107 930112 NOTABLE & QUOTABLE FROM THE DECEMBER ISSUE OF HETERODOXY A PUBLICATION OF THE CENTER FOR THE STUDY OF POPULAR CULTURE AT WELLESLEY COLLEGE THE WOMEN'S STUDIES DEPARTMENT HAS SENT LETTERS TO ALL THE STUDENTS WHO DECLARE MODERN EUROPEAN HISTORY AS THEIR MAJOR THIS LETTER ACCUSES THESE STUDENTS OF PERPETUATING THE DOMINANT WHITE MALE ATTITUDES AND BEHAVIOR THAT HAVE BEEN OPPRESSING WOMEN FOR GENERATIONS MOTHERS DON'T LET YOUR GIRLS GROW UP TO BE HISTORIANS SEE RELATED LETTER LETTERS TO THE EDITOR WE NEVER SAID IT WSJ APRIL 29 9301120129 9304280176 930428 INTERNATIONAL VIRGIN GROUP SEEKS PROBE OF CLAIMS AGAINST BRITISH AIR BY KEN WELLS STAFF REPORTER OF THE WALL STREET JOURNAL LONDON VIRGIN GROUP LTD'S CHAIRMAN RICHARD BRANSON CALLED UPON BRITISH REGULATORS TO INVESTIGATE NEW CLAIMS THAT BRITISH AIRWAYS CHAIRMAN SIR COLIN MARSHALL AND MANAGING DIRECTOR ROBERT AYLING HELPED ENCOURAGE A SOCALLED DIRTY TRICKS CAMPAIGN AGAINST MR BRANSON AND VIRGIN ATLANTIC AIRWAYS MR BRANSON ALSO SAID IF THE TWO BRITISH AIR EXECUTIVES CAN'T REFUTE THE CHARGES THEY SHOULD RESIGN BRITISH AIRWAYS LAST JANUARY APOLOGIZED TO MR BRANSON AND PAID A 610000 967460 LIBEL SETTLEMENT AFTER ADMITTING THAT BRITISH AIR SUBORDINATES HAD CONDUCTED A CAMPAIGN TO LURE VIRGIN CUSTOMERS WHILE SPREADING RUMORS AIMED AT DISCREDITING MR BRANSON BUT BRITISH AIR BLAMED THE FIASCO ON OVERZEALOUS PUBLIC RELATIONS CONSULTANTS AND STEADFASTLY DENIED THAT ITS TOP EXECUTIVES WERE INVOLVED HOWEVER BRIAN BASHAM ONE OF THOSE CONSULTANTS ALLEGED ON A BRITISH TELEVISION PROGRAM THAT SIR COLIN HAD WANTED TO SEE MR BRANSON STOPPED TO THAT END SIR COLIN HAD AUTHORIZED THE SPENDING OF 46000 ON A REPORT CIRCULATED TO THE MEDIA THAT SOUGHT TO UNFAIRLY UNDERMINE THE VIRGIN CHIEF'S CREDIBILITY MR BASHAM SAID HE ALSO ALLEGED ON GRANADA TV'S WORLD IN ACTION PROGRAM THAT MR AYLING KNEW OF UNAUTHORIZED ACCESS BY BRITISH AIR EMPLOYEES TO VIRGIN AIR'S COMPUTER AND HAD CHIDED STAFF MEMBERS FOR NOT BEING ABLE TO PLANT ANTIVIRGIN STORIES IN THE PRESS AS REPORTED MR BASHAM WAS FIRED BY BRITISH AIR FOR HIS ALLEGED PART IN THE SCHEME BRITISH AIR DECLINED TO COMMENT ON THE ALLEGATIONS BUT MR BRANSON SAID BOTH MEN MADE IT VERY CLEAR TO THEIR DIRECTORS THAT THEY KNEW NOTHING ABOUT THE DIRTYTRICKS CAMPAIGN IF IT NOW TURNS OUT THAT INDEED THEY DID I THINK THEIR POSITIONS AT BRITISH AIR ARE UNTENABLE BRITISH AIR HAS OFFERED 92 MILLION 146 MILLION TO SETTLE ONCE AND FOR ALL CLAIMS OVER THE SMEAR CAMPAIGN BUT MR BRANSON HAS DECLINED BECAUSE OF AN INSISTENCE BY BRITISH AIR LAWYERS THAT HE AGREE TO REFRAIN FROM MAKING PUBLIC COMMENTS ABOUT THE CASE IN THE FUTURE MR BRANSON SAID YESTERDAY THAT UNLESS BRITISH AIR COMES TO TERMS SOON HE WILL PURSUE A NEW ROUND OF LITIGATION IN BRITISH AND US COURTS 9304280175 930428 PUSHING THEIR LUCK ZUNI INDIANS PEDDLE MAGICAL' CHARMS ANIMAL CARVINGS ARE BECOMING THE TALISMAN OF CHOICE FOR SPIRITED PROFESSIONALS BY LA WINOKUR SPECIAL TO THE WALL STREET JOURNAL FOR THE SUPERSTITIOUS OR THE SIMPLY STYLISH THE TALISMAN OF THE MOMENT IS THE ZUNI FETISH AN ANIMAL CARVED IN STONE BY THE AMERICAN INDIAN TRIBE ACCORDING TO LEGEND ONCE THEY ARE BLESSED BY THE ZUNIS THE FETISHES CONTAIN THE SPIRIT OF THE BEASTS THEY REPRESENT HUNTERS TRADITIONALLY CARRIED THEM FOR GOOD LUCK SPIRITUAL GUIDANCE AND PROTECTION BUT TO THIS DAY MANY OTHER ZUNIS ALSO DRAW ON THEIR MAGICAL POWERS APPARENTLY SO DO A GROWING NUMBER OF BUSINESS EXECUTIVES AND PROFESSIONALS I NEVER GO TO TRIAL WITHOUT ONE OR ANYWHERE FOR THAT MATTER CONFIDES THERESA WELCH A NEW MEXICO ASSISTANT ATTORNEY GENERAL WHO HAS A COLLECTION OF NEARLY 80 ZUNI CARVINGS THE FETISHES CAN RANGE IN SIZE BUT USUALLY ARE SEVERAL INCHES LONG MS WELCH SAYS HER FAVORITE FETISH FOR THE COURTROOM IS THE BEAR A SYMBOL OF SOLITUDE AND INTROSPECTION I USE IT TO CENTER ME WHEN I'M INVOLVED IN A TRIAL THE ATTORNEY SAYS EXPLAINING THAT SHE USUALLY CLUTCHES IT IN ONE HAND DURING COURTROOM PROCEEDINGS I TEND TO BE A VERY AGGRESSIVE LITIGATOR BUT SOMETIMES I FIND IT'S NECESSARY TO TONE IT DOWN FOR ME THE BEAR IS A BALANCING MECHANISM SOME PEOPLE MAY CALL IT MUMBO JUMBO SAYS NELSON BLONCOURT A PHOTOGRAPHERS' AGENT IN NEW YORK BUT I THINK IT'S VERY BASIC EARTH MEDICINE HE KEEPS MOST OF THE 100 FETISHES HE OWNS AT THE OFFICE AND CLAIMS HE CHECKS IN WITH THEM FIRST THING EVERY WORKDAY TO DETERMINE WHICH WANTS TO WORK WITH HIM THAT DAY THEY SPEAK TO ME HE SAYS MR BLONCOURT THEN CARRIES THAT PARTICULAR FETISH WHEREVER HE GOES OR PLACES IT NEAR HIS WORK AREA USUALLY NEXT TO THE TELEPHONE FOR INSTANCE HE KEEPS A BUFFALO SYMBOL OF ABUNDANCE HANDY WHEN WAITING TO HEAR IF HE HAS LANDED AN ASSIGNMENT HE SETS IT ATOP HIS BID ESTIMATE VERY OFTEN I GET THE JOB HE SAYS FOR WILLIAM LARUE VICE PRESIDENT OF FINANCE AT A SAN FRANCISCO DIVISION OF HARPERCOLLINS PUBLISHERS INC THE MOUNTAIN LION BEAR AND HAWK FETISHES ON HIS DESK SERVE AS A WONDERFUL REFERENCE DURING THE DAY HE MAINTAINS THE PRIMARY ATTRIBUTES OF EACH ANIMAL COME INTO PLAY SOMETIMES I MUST BE ASSERTIVE LIKE THE MOUNTAIN LION AND CREATE MOMENTUM FOR GROUP MEETINGS HE EXPLAINS SOMETIMES I HAVE TO BE THE BEAR I HAVE TO BE PATIENT AND JUST SIT BACK AND LISTEN AT OTHER TIMES MR LARUE SAYS HE MUST ACT LIKE THE HAWK THE PREDATOR THAT SWOOPS DOWN ON YOU ALTHOUGH HE ADMITS HE DOESN'T MUCH RELISH THAT PART IT'S TOO MICHAEL MILKEN FOR ME HE SAYS BILL DIPIETRO AND COLLEAGUE JOANNE TRUESDELL BRING THEIR FETISHES ON BUSINESS TRIPS THE PHILADELPHIAAREA COMPUTERSOFTWARE EXECUTIVES CONFESS THAT THEY BROUGHT AN EAGLE FETISH WITH THEM TO THE COMDEX COMPUTER TRADE SHOW LAST NOVEMBER IN LAS VEGAS THE SHOW IS SO LARGE MR DIPIETRO SAYS HE FIGURED THE EAGLE FETISH WITH A BETTER OVERVIEW OF WHAT IS GOING ON COULD HELP HIM SEE SOME THINGS HE MIGHT OTHERWISE HAVE MISSED THE FETISH HELPS CAPTURE THE SPIRIT OF A PARTICULAR ANIMAL IN YOUR MIND AND GIVES YOU A NEW WAY OF LOOKING AT THINGS SAYS HAL ZINA BENNETT WHO HAS RESEARCHED ZUNI FETISHES AND HAS WRITTEN A BOOK ABOUT THEM IN TODAY'S WORKPLACE EVERYTHING IS SO LINEAR WE FIGURE THINGS OUT BY FORMULA AS WE STRUGGLE FOR A STRONG BOTTOM LINE HE SAYS BUT IN SUCH A HIGHLY TECHNOLOGICAL WORLD WE HUNGER FOR THE OTHER SIDE OF US THE INTUITIVE SIDE THE SOURCE OF OUR CREATIVITY THAT HUNGER APPEARS TO BE CONSUMING A LOT OF BUSINESS PROFESSIONALS ROBIN DUNLAP OWNER OF KESHI A ZUNI ARTSANDCRAFTS STORE IN SANTA FE NM SAYS SHE COUNTS A GROWING NUMBER OF CORPORATE LADDER CLIMBERS AMONG HER CUSTOMERS IT'S ALL ABOUT GETTING RECONNECTED TO THE EARTH AND GETTING TUNED IN TO OURSELVES AND OUR INNER JOURNEY SHE SAYS GRANTED SANTA FE IS WELL SANTA FE BUT THE CARVINGS ARE ALSO POPULAR IN MANY PLACES FAR FROM NEW MEXICO BETH FLUKE WHO OWNS DANDELION A JEWELRY AND CRAFTS RETAILER WITH THREE STORES IN THE PHILADELPHIA AREA SAYS SALES HAVE DOUBLED IN THE PAST TWO YEARS STEVE MANNING STAFF NATURALIST AT NATURE CO A UNIT OF CML GROUP INC SAYS THE RETAIL CHAIN COULD SELL A LOT MORE THAN WE CAN GET ABOUT 50000 ZUNI ANIMAL CARVINGS ARE PRODUCED ANNUALLY AT THE PUEBLO OF ZUNI ARTS AND CRAFTS A TRIBAL ENTERPRISE IN ZUNI NM ACCORDING TO MANAGER JIM OSTLER THAT IS UP FROM ABOUT 8000 FIVE YEARS AGO THE NUMBER OF FETISH STYLES HAS CLIMBED TO ABOVE 100 TRADITIONAL FETISH CARVINGS REPRESENT THE ANIMALS THAT THE TRIBAL ANCESTORS ENCOUNTERED MOST THE MOUNTAIN LION BADGER WOLF BEAR EAGLE COYOTE AND MOLE AMONG OTHERS NOWADAYS THE ZUNIS WILL EVEN TAKE SPECIAL REQUESTS ENDANGERED MARINE WILDLIFE LIKE THE SEAL AND DOLPHIN ARE OFTEN REQUESTED SAYS MILFORD NAHOHAI ASSISTANT MANAGER AT THE TRIBAL ENTERPRISE IF THE ZUNIS HAD SEEN THESE LIVING CREATURES LONG AGO HE SAYS THEY LIKELY WOULD HAVE INCLUDED THEM IN THEIR REPERTOIRE JOYCE KENYON A SAN JOSE CALIF COMPUTERSYSTEMS MANAGER THANKS HER HUMMINGBIRD FETISH FOR SAVING HER NECK ON MORE THAN ONE OCCASION RECENTLY IN AN INTUITIVE HIT IT CAUTIONED THAT SHE MIGHT WANT TO ASSURE THAT A BACKUP TO HER COMPANY'S COMPUTER SYSTEM WAS IN PLACE IT'S A GOOD THING I DID THE BACKUP WORK BECAUSE THE COMPUTER CRASHED THE NEXT DAY SHE SAYS MS KENYON SAYS HER COLLEAGUES INITIALLY TEASED HER FOR TALKING TO HER FETISHES NOW SHE SAYS THEY COME TO HER FOR HELP EVEN PRESIDENT CLINTON MAY NOT BE IMMUNE WHILE CAMPAIGNING IN SANTA FE LAST OCTOBER WITH ALICE KING WIFE OF NEW MEXICO GOV BRUCE KING HILLARY RODHAM CLINTON DUCKED INTO A MUSEUM GIFT SHOP IN SEARCH OF A WEDDINGANNIVERSARY GIFT FOR HER HUSBAND RELATES A SPOKESMAN FOR GOV KING AS THE STORY GOES MRS CLINTON WAS DRAWN TO THE CARVINGS BUT WAS ON A TIGHT SCHEDULE AND DIDN'T HAVE TIME TO PURCHASE ANY MRS KING LATER RETURNED TO THE SHOP AND BOUGHT TWO FETISHES A BEAR AND A MOUNTAIN LION AND SENT THEM TO THE CLINTONS IN LITTLE ROCK ARK LATER THAT MONTH ON A CAMPAIGN SWING THROUGH THE SOUTHWEST MR CLINTON WAS SPOTTED PULLING THE MOUNTAIN LION FETISH FROM HIS POCKET HE TOLD GOV KING WHO WAS ACCOMPANYING HIM THAT THE FETISH HAD BEEN BRINGING HIM GOOD LUCK ACCORDING TO THE GOVERNOR'S SPOKESMAN THE WHITE HOUSE HAD NO COMMENT SO WHAT DO THE ZUNIS MAKE OF ALL THIS UNLIKE SOME OTHER TRIBAL GROUPS THERE HASN'T BEEN ANY REAL OBJECTION FROM THE ZUNI PEOPLE TO OTHERS BUYING THESE ITEMS AND RELYING ON THEM FOR SPIRITUAL DIRECTION SAYS JOSEPH DISHTA HEAD COUNCILMAN FOR THE TRIBAL COUNCIL IN ZUNI BUT ADDS MR NAHOHAI OF THE ZUNI ARTSANDCRAFTS ENTERPRISE THE ZUNI PREFER TO THINK OF THEM AS CARVINGS NOT FETISHES IN THE TRUE ZUNI SENSE TO THEM HE EXPLAINS A CARVING BECOMES A FETISH ONLY AFTER IT HAS BEEN BLESSED BY THE TRIBE'S MEDICINE SOCIETY AT THE ANNUAL WINTER SOLSTICE GATHERING IN OUR TRADITION FETISHES ARE USED FOR THINGS LIKE HEALING PROTECTION SPIRITUAL GUIDANCE GOOD LUCK AND LONGEVITY SAYS ZUNI FETISH CARVER LENA LEKI BOONE A LOT OF MY CUSTOMERS BELIEVE IN THAT I BELIEVE IN THAT SHE SAYS BUT IN MY WORK I DON'T GUARANTEE IT 9304280174 930428 NORTHERN TELECOM'S EARNINGS PLUNGED 27 DURING FIRST QUARTER TORONTO NORTHERN TELECOM LTD AS EXPECTED REPORTED SHARPLY LOWER EARNINGS MAINLY DUE TO LOWER MARGINS AND INCREASED RESEARCH AND DEVELOPMENT AND OTHER EXPENSES THAT WERE NOT OFFSET BY EXPECTED REVENUE GROWTH THE MAKER OF TELECOMMUNICATIONS EQUIPMENT SUCH AS DIGITAL SWITCHES WHICH IS CONTROLLED BY CANADA'S BCE INC SAID NET INCOME FELL 27 TO 759 MILLION OR 30 CENTS A SHARE FROM 1042 MILLION OR 41 CENTS A SHARE A YEAR AGO SALES ROSE 23 TO 194 BILLION FROM 190 BILLION ALTHOUGH WE ARE NOT SATISFIED WITH OUR FIRST QUARTER PERFORMANCE WE CONTINUE TO TAKE STEPS TO BUILD OUR BUSINESS IN NONNORTH AMERICAN MARKETS BUSINESS THAT NOW ACCOUNTS FOR SOME 25 OF OUR REVENUES JEAN C MONTY PRESIDENT AND CHIEF EXECUTIVE SAID INTERNATIONAL REVENUE WAS BOOSTED BY RESULTS IN THE ASIA PACIFIC CARIBBEAN AND LATIN AMERICAN MARKETS BUT THESE GAINS WERE OFFSET BY LOWER REVENUE IN EUROPE PARTLY DUE TO CURRENCY DEVALUATIONS MR MONTY SAID THE COMPANY WOULD MAINTAIN THE PACE OF ITS RESEARCH AND DEVELOPMENT EFFORT IN 1993 IN THE FIRST QUARTER R&D EXPENSES ROSE TO 227 MILLION COMPARED WITH 203 MILLION A YEAR AGO SELLING GENERAL AND ADMINISTRATIVE EXPENSES ROSE 5 TO 369 MILLION ORDERS FOR THE QUARTER FELL 4 TO 184 BILLION FROM 192 BILLION MAINLY REFLECTING THE TIMING OF CERTAIN LARGE ORDERS WITH MAJOR CUSTOMERS MR MONTY SAID ORDERS ON HAND ON MARCH 31 WERE 18 HIGHER AT 353 BILLION FROM A YEAR AGO IN NORTH AMERICA EXPECTED GOOD ACCESS LINE GROWTH COMBINED WITH THE IMPROVING ECONOMY THE STRONG ORDER BACKLOG AND HEAVIER CAPITAL EXPENDITURES BY THE BELL COMPANIES ARE EXPECTED TO YIELD STRONGER RESULTS IN THE SECOND HALF OF 1993 COMPARED WITH THE FIRST HALF MR MONTY SAID NORTHERN TELECOM'S SHARES CLOSED AT 3475 A SHARE UP 375 CENTS IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE 9304280173 930428 TECHNOLOGY & HEALTH FDA IS PREPARED TO ALLOW SALES OF FEMALE CONDOM BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FOOD AND DRUG ADMINISTRATION SAID IT IS PREPARED TO GIVE MARKETING APPROVAL WITH CERTAIN RESTRICTIONS TO THE FIRST FEMALE CONDOM A CONTRACEPTIVE DESIGNED TO HELP WOMEN GUARD AGAINST AIDS WISCONSIN PHARMACAL CO WHICH PLANS TO MARKET THE CONDOMS UNDER THE NAME REALITY SAID IT HOPES TO BEGIN SELLING THE PRODUCT BY THIS FALL THE FEMALE CONDOM INVENTED IN DENMARK IS ESSENTIALLY A SEVENINCHLONG LUBRICATED POUCH MADE OF POLYURETHANE WITH FLEXIBLE RINGS AT EACH END THE INNER RING FITS BEHIND THE PUBIC BONE AND THE OUTER RING FITS OUTSIDE THE BODY THE AGENCY SAID IT HAS DECIDED TO APPROVE THE CONDOM BECAUSE IT IS THE ONLY PRODUCT OF ITS KIND READY FOR MARKETING THE FEMALE CONDOM IS NOT ALL WE WOULD WISH FOR BUT IT IS BETTER THAN NO PROTECTION AT ALL FDA COMMISSIONER DAVID KESSLER SAID DR KESSLER STRESSED HOWEVER THAT MALE LATEX CONDOMS REMAIN THE BEST PROTECTION AGAINST SEXUALLY TRANSMITTED DISEASES AND THAT COUPLES SHOULD CONTINUE TO USE THEM THE FDA SAID THAT TO GAIN APPROVAL FOR ITS FEMALE CONDOM WISCONSIN PHARMACAL MUST INDICATE ON THE PRODUCT LABEL THAT MALE LATEX CONDOMS PROVIDE HIGHLY EFFECTIVE PROTECTION AGAINST SEXUALLY TRANSMITTED DISEASES SUCH AS ACQUIRED IMMUNE DEFICIENCY SYNDROME THE LABELS ALSO MUST COMPARE THE PREGNANCY RATE FOR FEMALE CONDOM USERS ABOUT 26 A YEAR IN US TRIALS WITH RATES FOR OTHER FEMALE BARRIER CONTRACEPTIVES WHICH ARE LOWER JACKSON WISBASED WISCONSIN PHARMACAL SAID IT PLANS TO PARTICIPATE IN ADDITIONAL EFFECTIVENESS STUDIES OF THE PRODUCT AND CONDUCT FOCUS GROUP STUDIES ON THE LABEL IN ANNOUNCING ITS INTENDED APPROVAL THE FDA NOTED THAT IT HAD RESERVATIONS ABOUT THE LIMITED DATA AVAILABLE ON THE PROTECTION THE CONDOM OFFERS AGAINST SEXUALLY TRANSMITTED DISEASES THE HIGH PREGNANCY RATE AMONG USERS THE SHORT DURATION OF THE CLINICAL TRIALS ON THE PRODUCT AND THE LIMITED NUMBER OF WOMEN INVOLVED IN THE TRIALS THE PRODUCT HAD BEEN GIVEN AN EXPEDITED FDA REVIEW BECAUSE THE AGENCY SAID WOMEN NEEDED A WAY TO PROTECT THEMSELVES WITHOUT DEPENDING ON THEIR PARTNERS SEPARATELY THE FDA SAID IT IS PROPOSING TO REQUIRE MANUFACTURERS OF INFLATABLE PENILE IMPLANTS TO SUBMIT SCIENTIFIC DATA DEMONSTRATING THAT THE PRODUCTS ARE SAFE AND EFFECTIVE THE AGENCY SAID THAT SINCE 1984 IT HAS RECEIVED MORE THAN 6500 REPORTS OF PROBLEMS WITH THE DEVICES WHICH CAN PROVIDE ERECTION ON DEMAND AND ARE USED TO TREAT IMPOTENCE THE PROBLEMS INCLUDE INFECTION MIGRATION OF THE DEVICE INTO OTHER PARTS OF THE BODY AND MECHANICAL MALFUNCTIONS THE AGENCY SAID ADDING THAT THE POTENTIAL FOR LONGTERM ADVERSE EFFECTS ISN'T KNOWN COMMENTS WILL BE ACCEPTED FOR 60 DAYS ON THE PROPOSAL WHICH IS SCHEDULED TO APPEAR IN TODAY'S FEDERAL REGISTER ABOUT 250000 MEN IN THE US HAVE THESE IMPLANTS WHICH ARE MADE OF SILICONE RUBBER OR POLYURETHANE RUBBER ABOUT 28000 ARE IMPLANTED ANNUALLY 9304280172 930428 COMMODITY GOLD FUTURES PRICES RETREAT AMID PROFITTAKING DOLLAR'S RISE BUT METALS MARKET REMAINS FIRM BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL GOLD FUTURES PRICES RETREATED ON PROFITTAKING AND A RALLY IN THE VALUE OF THE US DOLLAR BUT ANALYSTS SAY THE OVERALL TONE OF THE GOLD MARKET REMAINS FIRM AT NEW YORK'S COMMODITY EXCHANGE GOLD FOR JUNE DELIVERY WAS DOWN 170 TO 35210 AN OUNCE GOLD PRICES HAVE MOVED SUBSTANTIALLY HIGHER IN RECENT WEEKS AFTER LANGUISHING THROUGHOUT MOST OF LAST YEAR SINCE EARLY MARCH THE PRICE OF THE JUNE CONTRACT IS UP NEARLY 8 FROM 327 AN OUNCE GOLD GOT A BOOST LAST WEEK FROM NEWS THAT SIR JAMES GOLDSMITH THE BILLIONAIRE FINANCIER SAID HIS INVESTMENT HOLDING COMPANY AND AN ASSOCIATED FIRM SOLD A 10 STAKE IN NEWMONT MINING CO NORTH AMERICA'S LARGEST GOLDMINING COMPANY MR GOLDSMITH SAID HE HAD USED MORE THAN 300 MILLION OF HIS PROCEEDS FROM THE SALE TO BUY GOLD BULLION SOME INFORMED INVESTORS SEEM TO BE BUYING PRECIOUS METALS AT THE MOMENT SAID FRED DEMLER METALS ECONOMIST FOR PAINEWEBBER THAT HAS CAUSED OTHER PEOPLE TO JOIN THE BANDWAGON YET YESTERDAY A LACK OF PARTICIPATION IN THE GOLD MARKET BY COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTORS' MONEY CAUSED PRICES TO EASE LOWER THE MARKET ALSO WAS HAMPERED BY A RISE IN THE VALUE OF THE DOLLAR PARTICULARLY AGAINST THE JAPANESE YEN AFTER INTERVENTION BY THE FEDERAL RESERVE TO SELL YEN AGAINST THE DOLLAR MOST ANALYSTS DON'T THINK YESTERDAY'S GOLDPRICE DECLINE IS LIKELY TO SUBSTANTIALLY SAP THE STRENGTH OF THE MARKET GOLD WAS DUE FOR A BIT OF CONSOLIDATION SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH THIS IS NOT A MARKET THAT'S GOING TO GO STRAIGHT UP WITHOUT SOME PAUSES STILL THE CORRECTION WAS ORDERLY AND THE MARKET STILL HAS A SOLID TONE SILVER PRICES ROSE WITH THE JULY CONTRACT CLIMBING 23 CENTS TO 4116 AN OUNCE ANALYSTS SAID SILVER WAS HURT LESS BY THE DOLLAR'S MOVEMENT YESTERDAY THAN WAS GOLD MOREOVER AGGRESSIVE BUYING OF SILVER FUTURES BY COMMODITY FUNDS HELPED TO SUPPORT PRICES JULY PLATINUM WAS DOWN 90 CENTS TO 37630 AN OUNCE PRESSURED LOWER BY REPORTS THAT JAPANESE IMPORTS OF PLATINUM HAVE SLOWED RECENTLY JAPAN'S AUTOMOBILE INDUSTRY TYPICALLY BUYS LARGE QUANTITIES OF PLATINUM FOR CATALYTIC CONVERTERS IN OTHER COMMODITY MARKETS YESTERDAY ENERGY PETROLEUM FUTURES DRIFTED LOWER IN THIN TRADING THE PRICE OF CRUDE OIL FOR JUNE DELIVERY SETTLED AT 2018 A BARREL DOWN 12 CENTS THERE WAS LITTLE NEWS TO AFFECT THE OIL MARKET ALTHOUGH SOME TRADERS WERE WAITING ON FURTHER ESTIMATES OF APRIL CRUDE PRODUCTION BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES PRELIMINARY ESTIMATES HAVE SUGGESTED APRIL OUTPUT OF AROUND 24 MILLION BARRELS A DAY LESS THAN OPEC PRODUCED IN MARCH BUT STILL ABOVE ITS PRODUCTION CEILING OF 236 MILLION BARRELS A DAY ALSO YESTERDAY AS USUAL TRADING WAS CAUTIOUS IN ADVANCE OF THE LATEST INDUSTRY REPORT ON US OIL STATISTICS RELEASED AFTER FUTURES TRADING HAD ENDED THE REPORT SHOWED INVENTORIES OF CRUDE OIL AND DISTILLATE FUELS ROSE 247000 BARRELS AND 22 MILLION BARRELS RESPECTIVELY LAST WEEK WHILE THOSE FOR GASOLINE DECLINED NEARLY 15 MILLION BARRELS BUT SOME ANALYSTS SUGGESTED A MORE IMPORTANT NUMBER WAS THE PERCENTAGE OF REFINERY UTILIZATION LAST WEEK US REFINERY OPERATIONS INCREASED SLIGHTLY TO 89 OF CAPACITY FROM 88 IN THE PRECEEDING WEEK SOME MAY CONSIDER THAT BEARISH FOR THE OIL MARKET GRAINS & SOYBEANS PRICES OF CORN FUTURES CONTRACTS SANK AMID FORECASTS FOR SEVERAL DAYS OF DRY WEATHER IN THE MIDWEST WHICH SHOULD PERMIT MANY CORN FARMERS TO BEGIN PLANTING THEIR CROP THE UNUSUALLY WET SPRING IN MUCH OF THE MIDWEST HAS RAISED CONCERNS THAT A RAINDELAYED PLANTING SEASON MIGHT REDUCE THE NUMBER OF ACRES PLANTED TO CORN HEAVY SELLING BY COMMODITY FUND MANAGERS ALSO HELPED DEPRESS CORN FUTURES PRICES IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR JULY DELIVERY DROPPED THREE CENTS A BUSHEL TO SETTLE AT 2228 A BUSHEL PRICES OF MOST SOYBEAN FUTURES CONTRACTS SETTLED LOWER WHILE WHEAT CONTRACTS SETTLED MIXED TRADERS ARE WAITING FOR THE AGRICULTURE DEPARTMENT TO ANNOUNCE THE MIXTURE OF US FARM COMMODITIES THAT RUSSIA INTENDS TO ACQUIRE WITH THE 700 MILLION FOOD FOR PROGRESS LOAN PACKAGE GRANTED BYWHITE HOUSE LIVESTOCK AND MEATS CATTLE FUTURES PRICES ROSE ON SURPRISINGLY STRONG DEMAND FOR CATTLE AFTER LAST WEEK'S CATTLEONFEED REPORT WHICH SHOWED A LARGE INVENTORY OF CATTLE ON FEEDLOTS MANY IN THE INDUSTRY EXPECTED MEAT PACKERS TO SHY AWAY FROM BUYING CATTLE AT CURRENTLY EXPENSIVE PRICES ON THE CASH MARKET SAID CHARLES LEVITT LIVESTOCK ANALYST FOR SHEARSON LEHMAN BROTHERS HOWEVER PACKERS HAVE CONTINUED TO BUY CATTLE AT A BRISK PACE THIS WEEK PAYING AS MUCH AS 825 CENTS A POUND ON THE CASH MARKET PARTLY AS A RESULT THE PRICE OF THE CATTLE FUTURES CONTRACT FOR JUNE DELIVERY WAS UP 42 CENTS TO 7665 CENTS A POUND 9304280171 930428 INSIDER TRADING SPOTLIGHT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9304280169 930428 ECONOMY CONSUMER CONFIDENCE FIRMED IN APRIL BUT WORRIES ABOUT JOB PICTURE PERSIST BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CONFIDENCE OF CONSUMERS HAS PERKED UP IN APRIL ACCORDING TO A NEW REPORT REVERSING A TROUBLESOME THREEMONTH STRING OF FADING OPTIMISM ABOUT THE ECONOMY THE CONFERENCE BOARD SAID ITS CONSUMER CONFIDENCE INDEX FOR APRIL JUMPED 45 POINTS TO 677 WITH AMERICANS MORE UPBEAT ABOUT CURRENT ECONOMIC CONDITIONS AND IN THEIR EXPECTATIONS FOR THE FUTURE HOWEVER THEY WERE STILL WORRIED ABOUT EMPLOYMENT CONDITIONS 41 OF RESPONDENTS COMPLAINED THAT JOBS WERE HARD TO GET WHILE ONLY 8 THOUGHT THEY WERE PLENTIFUL SEPARATELY THE LABOR DEPARTMENT SAID WORKERS' WAGES SALARIES AND BENEFITS ROSE 10 IN THE FIRST QUARTER COMPARED WITH A 09 RISE IN THE FOURTH QUARTER OF 1992 ANALYSTS SAID THE NEW FIGURES SUGGESTED THAT INFLATION IS STILL WELLBEHAVED ALTHOUGH THE RISE IN CONSUMER CONFIDENCE DIDN'T MAKE UP FOR THE 15POINT DROP IN THE INDEX BETWEEN DECEMBER AND MARCH IT DID HELP EASE WORRIES THAT THE CONSUMERS HAVE COMPLETELY RETRENCHED SEVERELY CURBING THEIR SPENDING ON GOODS AND SERVICES THE FIGURES ALSO SUGGEST THAT THE ECONOMY MAY HAVE PICKED UP SOME MOMENTUM IN APRIL AFTER SLOWING DOWN THROUGHOUT MUCH OF THE FIRST QUARTER THE ADVANCE IS SIGNIFICANT AS IT IS ONE OF THE FIRST AVAILABLE PIECES OF DATA FOR THE MONTH AND IT IS SUGGESTING THAT ACTIVITY BEGAN TO IMPROVE DURING THE MONTH AFTER FALTERING DURING THE WINTER SAID MARILYN SCHAJA MONEY MARKET ECONOMIST FOR DONALDSON LUFKIN & JENRETTE INDEED IT SEEMS THE ECONOMY LOST CONSIDERABLE MOMENTUM IN THE FIRST QUARTER IN EVERYTHING FROM EXPORT GROWTH TO MANUFACTURING TO RETAIL SALES THE COMMERCE DEPARTMENT WILL RELEASE ITS ESTIMATE FOR FIRSTQUARTER ECONOMIC GROWTH TOMORROW AND PRIVATE ECONOMISTS HAVE PUSHED DOWN THEIR FORECASTS IN THE PAST FEW WEEKS BECAUSE OF THE POOR ECONOMIC PERFORMANCE IN MARCH THE MARCH DECLINE MAY HAVE BEEN CAUSED MOSTLY BY BAD WEATHER BUT THE FACT THAT AMERICANS ARE STILL VERY CONCERNED ABOUT JOB CONDITIONS SUGGESTS THAT SPENDING IS LIKELY TO REMAIN LACKLUSTER MOST OF THE RISE IN COMPENSATION DURING THE FIRST QUARTER CAME FROM AN INCREASE IN BENEFIT COSTS THEY JUMPED 14 FASTER THEN THE 12 CLIP THEY ROSE IN THE LAST QUARTER OF 1992 EXCLUDING BENEFITS WAGES AND SALARIES ROSE 07 COMPARED WITH A 08 INCREASE IN THE FOURTH QUARTER ANALYSTS SAID THE SLUGGISH LABOR MARKET SUGGESTS THAT WAGES AND SALARIES WILL CONTINUE TO INCREASE ONLY SLOWLY ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS 9304280168 930428 SEC GIVES NOD TO MUTUAL FUNDS FOR CHINA SHARES BY KATHY CHEN STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG THE US SECURITIES AND EXCHANGE COMMISSION HAS OPENED THE WAY FOR USREGISTERED MUTUAL FUNDS TO INVEST IN CHINA'S FLEDGLING STOCK MARKETS THE APPROVAL COULD GIVE A MUCHNEEDED BOOST TO CHINA'S LANGUISHING CLASS B SHARES FOR FOREIGN INVESTORS BESIDES SENDING A GREEN LIGHT TO THE THREE CHINA FUNDS LISTED ON THE NEW YORK STOCK EXCHANGE THE SEC'S DECISION IS ALSO LIKELY TO BE INTERPRETED BY MANAGERS OF OTHER FUNDS AS A VOTE OF CONFIDENCE IN CHINA'S MARKETS STILL WITH FOREIGN INVESTORS NOW MORE DISCRIMINATING ABOUT CHINESE STOCKS ANY IMMEDIATE SURGE IN PRICES IS EXPECTED TO BE SHORTLIVED EXCEPT FOR THOSE COMPANIES WITH SOUND FUNDAMENTALS THE SEC NEVER DIRECTLY PROHIBITED SUCH PURCHASES BUT THERE WAS SOME CONFUSION OVER WHETHER CUSTODY ARRANGEMENTS ON THE SHANGHAI AND SHENZHEN STOCK EXCHANGES COMPLIED WITH US PROVISIONS THE SEC STIPULATES THAT THERE MUST BE A CENTRAL SYSTEM FOR CLEARING SECURITIES IN A FOREIGN COUNTRY BUT THE SHENZHEN AND SHANGHAI CLEARING SYSTEMS ARE SEPARATE AS A RESULT USLISTED FUNDS HAVE LARGELY REFRAINED FROM INVESTING IN CHINESE STOCKS BUT IN A LETTER SENT TO NEW YORKLISTED JARDINE FLEMING CHINA REGION FUND INC MONDAY THE SEC SAID IT WOULDN'T RECOMMEND ACTION AGAINST THE FUND FOR BUYING CHINESE STOCKS IT SENT A SIMILAR NOTE TO BAKER & MCKENZIE WHICH REPRESENTS 10 CUSTODIAN INSTITUTIONS SAYING IT WOULDN'T RECOMMEND ACTION AGAINST FUNDS THAT MAINTAIN CUSTODY OF CHINESE SHARES THROUGH ANY OF THE 10 THE 10 INSTITUTIONS ARE BANKERS TRUST CO BANK OF NEW YORK BOSTON SAFE DEPOSIT & TRUST CO CHASE MANHATTAN BANK CHEMICAL BANK CITIBANK HONGKONG & SHANGHAI BANKING CORP MORGAN GUARANTY TRUST CO OF NEW YORK STANDARD CHARTERED BANK AND STATE STREET BANK & TRUST CO THE LETTERS WERE IN RESPONSE TO REQUESTS FROM JARDINE FLEMING AND BAKER & MCKENZIE WHICH HAD SOUGHT THE OFFICIAL GOAHEAD FOR USLISTED INVESTMENT COMPANIES TO BUY CHINESE SHARES ASKED ABOUT THE LETTERS AN SEC OFFICIAL IN WASHINGTON SAID US REGULATORS JUDGED THAT A GROUP OF THREE BANKS IN SHENZHEN MEETS THE REQUIREMENT AS A CUSTODIAN FOR SECURITIES WHILE IN SHANGHAI THE EXCHANGE ITSELF MEETS THE REQUIREMENT AS CUSTODIAN WITH THE SEC GOAHEAD NEW YORKLISTED CHINA FUNDS ARE LIKELY TO CHANNEL AT LEAST SOME OF THEIR MONEY INTO CHINA SO THAT THEY CAN LIVE UP TO THEIR NAMES SAYS ANDREW WONG AN ASSISTANT DIRECTOR AT BARING BROTHERS & CO OF THE THREE LISTED FUNDS ONLY BARING INTERNATIONAL INVESTMENT'S GREATER CHINA FUND HAS ANY MONEY IN ACTUAL CHINESE SHARES JARDINE FLEMING INTERNATIONAL MANAGEMENT INC'S FUND AND WARDLEY INVESTMENT SERVICE LTD'S CHINA FUND INC HOLD MOSTLY HONG KONGLISTED CHINA CONCEPT STOCKS WITH THE REST IN CASH 9304280167 930428 TECHNOLOGY TEXAS INSTRUMENTS' PATENTS PACT DALLAS TEXAS INSTRUMENTS INC SAID IT SIGNED AN AGREEMENT WITH HYUNDAI ELECTRONICS INDUSTRIES CO UNDER WHICH HYUNDAI WILL PAY IT ROYALTIES FOR THE USE OF ITS SEMICONDUCTOR AND PERSONAL COMPUTER SYSTEM PATENTS TERMS WEREN'T FULLY DISCLOSED BUT A TEXAS INSTRUMENTS SPOKESWOMAN SAID HYUNDAI WILL MAKE ONETIME AND CONTINUING ROYALTY PAYMENTS HYUNDAI WILL HAVE USE OF THE SEMICONDUCTOR PATENTS FOR 10 YEARS AND THE PERSONAL COMPUTER SYSTEM PATENTS FOR FIVE YEARS THE COMPANY SAID TEXAS INSTRUMENTS IS AN ELECTRONICS MAKER HYUNDAI IS AN ELECTRONICS MAKER BASED IN SEOUL KOREA 9304280166 930428 BUSINESS BRIEF WARNACO GROUP INC FIRM POSTS QUARTERLY PROFIT AFTER YEAREARLIER DEFICIT APPAREL MAKER WARNACO GROUP INC REVERSED A YEAREARLIER LOSS IN THE FIRST QUARTER AND REPORTED A SHARP DECLINE IN INTEREST EXPENSE THE NEW YORK COMPANY REPORTED NET INCOME OF 252000 OR ONE CENT A SHARE COMPARED WITH THE YEAREARLIER LOSS OF 42 MILLION OR 284 A SHARE REVENUE ROSE 20 TO 1568 MILLION FROM 1305 MILLION EARNINGS FROM OPERATIONS ROSE TO 108 MILLION FROM 44 MILLION INTEREST EXPENSE FELL TO 99 MILLION FROM 157 MILLION AVERAGE SHARES OUTSTANDING ROSE TO 199 MILLION FROM 153 MILLION THE LATEST QUARTER INCLUDED A 105 MILLION LOSS EQUAL TO 53 CENTS A SHARE FROM AN ACCOUNTING CHANGE THE YEAREARLIER RESULTS INCLUDED A LOSS OF 465 MILLION OR 304 A SHARE FROM EARLY EXTINGUISHMENT OF DEBT WARNACO GROUP INC'S SHARES CLOSED AT 3350 UP 625 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING TUESDAY A BUSINESS BRIEF IN YESTERDAY'S EDITION INCORRECTLY STATED THAT THE STOCK CLOSED AT 25 UP 375 CENTS 9304280165 930428 DIVIDEND NEWS SCHERINGPLOUGH CORP SCHERINGPLOUGH CORP A KENILWORTH NJ DRUG COMPANY BOOSTED ITS QUARTERLY DIVIDEND 15 TO 45 CENTS FROM 39 CENTS THE DIVIDEND IS PAYABLE JUNE 1 TO HOLDERS OF RECORD MAY 7 THE COMPANY HAD 1949 MILLION SHARES OUTSTANDING ON MARCH 31 9304280164 930428 FERRO CORP TO BUY BAYER UNIT CLEVELAND FERRO CORP SAID IT AGREED IN PRINCIPLE TO PURCHASE THE CERAMIC FRIT AND COLOR BUSINESS OF BAYER SPA MILAN A UNIT OF GERMANY'S BAYER AG TERMS WEREN'T DISCLOSED THE PURCHASE WOULD INCLUDE A STATEOFTHEART MANUFACTURING OPERATION IN CANNARA ITALY RESEARCH LABORATORIES IN SPEZZANO ITALY AND A MARKETING AND CUSTOMERSUPPORT FACILITY IN FIORANO ITALY FERRO SAID THE COMPANY SAID THE PLANNED ACQUISITION IS IN LINE WITH ITS STRATEGY TO EXPAND GLOBAL CORE BUSINESSES FERRO IS A WORLDWIDE PRODUCER OF CERAMIC FRIT AND COLOR THE COMPANY MAKES SPECIALTY MATERIALS INCLUDING COATINGS COLORS CERAMICS CHEMICALS AND PLASTICS 9304280163 930428 CANANDAIGUA WINE WILL BUY BARTON FOR 1245 MILLION IN CASH AND STOCK CANANDAIGUA NY CANANDAIGUA WINE CO SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE CLOSELY HELD BARTON INC A DISTRIBUTOR OF IMPORTED BEERS AND MAKER AND MARKETER OF DISTILLED SPIRITS FOR AS MUCH AS 1245 MILLION IN CASH AND STOCK THE WINE MAKER SAID TERMS INCLUDE PAYMENT AT CLOSING OF 655 MILLION IN CASH AND ONE MILLION CANANDAIGUA UNREGISTERED CLASS A SHARES WHICH CLOSED YESTERDAY IN LATE OVERTHECOUNTER TRADING AT 17 A SHARE UP 3 CANANDAIGUA IS TO PAY AS MUCH AS 45 MILLION MORE PLUS INTEREST THROUGH NOVEMBER 1996 DEPENDING ON BARTON'S PERFORMANCE CANANDAIGUA SAID THAT IN THE YEAR ENDED MARCH 31 BARTON IN CHICAGO HAD UNAUDITED GROSS SALES OF 387 MILLION NET SALES AFTER EXCISE TAXES OF 236 MILLION AND EARNINGS BEFORE INTEREST AND INCOME TAXES OF 23 MILLION DURING ITS YEAR ENDED AUG 31 CANANDAIGUA HAD NET INCOME OF 114 MILLION OR 101 A PRIMARY SHARE ON SALES OF 245 MILLION BARTON IS THE COUNTRY'S FOURTH LARGEST MARKETER OF IMPORTED BEERS AND THE EIGHTH LARGEST MAKER AND MARKETER OF DISTILLED SPIRITS CANANDAIGUA SAID CANANDAIGUA IS THE COUNTRY'S THIRD LARGEST WINE PRODUCER ANALYSTS SAID THE DEAL CONTINUED THE CONSOLIDATION THAT THE WINE AND SPIRITS INDUSTRY HAS SEEN IN RECENT YEARS MARVIN SANDS CANANDAIGUA'S CHAIRMAN SAID THE ACQUISITION WOULD GIVE THE COMPANY A PRESENCE IN ALL THREE SEGMENTS OF THE ALCOHOLIC BEVERAGE BUSINESS ALLOWING IT TO SHARE MARKETING AND DISTRIBUTION RESOURCES BETWEEN SEGMENTS CANANDAIGUA SAID IT PLANS TO OPERATE BARTON AS A SEPARATE DIVISION AND IT DOESN'T EXPECT ANY CHANGES TO THE MANAGEMENT OF EITHER CANANDAIGUA OR BARTON THE DEAL IS SUBJECT TO DUE DILIGENCE REGULATOR APPROVALS AND STANDARD CONDITIONS TWO BARTON DIRECTORS ARE TO JOIN CANANDAIGUA'S BOARD THEY INCLUDE ELLIS M GOODMAN 56 YEARS OLD BARTON'S CHAIRMAN AND CONTROLLING SHAREHOLDER AND SIR HARRY SOLOMON 56 CHAIRMAN OF HILLSDOWN HOLDINGS PLC A BRITISH FOOD PRODUCER AND MARKETER THEY EXPAND CANANDAIGUA'S BOARD TO EIGHT DIRECTORS MR GOODMAN WILL ALSO BE CANANDAIGUA'S CHIEF EXECUTIVE OFFICERSPIRITS AND BEERS 9304280162 930428 DIVIDEND NEWS QUALITY FOOD CENTERS INC QUALITY FOOD CENTERS INC A BELLEVUE WASH GROCERY STORE CHAIN DECLARED ITS FIRST QUARTERLY DIVIDEND FIVE CENTS A SHARE PAYABLE MAY 28 TO STOCK OF RECORD MAY 14 9304280161 930428 KANSAS CITY P&L BONDS KANSAS CITY MO KANSAS CITY POWER & LIGHT CO SAID IT PLANS TO REDEEM EARLY ALL 15 MILLION OF ITS 475 FIRST MORTGAGE BONDS DUE OCT 1 1995 THE EARLY REDEMPTION RATE IS 10044 OF THE PRINCIPAL AMOUNT PLUS INTEREST THE REDEMPTION DATE IS MAY 28 9304280159 930428 WORK & FAMILY BY SUE SHELLENBARGER MENTORING PROGRAMS FOR GIRLS EXPAND AS MORE WORKING WOMEN TRY TO PROVIDE POSITIVE ROLE MODELS TODAY'S TAKE OUR DAUGHTERS TO WORK DAY SPONSORED BY THE MS FOUNDATION FOR WOMEN IS EXPECTED TO DRAW THOUSANDS OF GIRLS NINE TO 15 YEARS OLD TO WORKPLACES NATIONWIDE TO SPEND A DAY WITH MOTHERS OR FRIENDS ON THE JOB AT A PLANNED POWER LUNCH IN NEW YORK SPONSORED BY WORKING WOMAN AND OTHER MAGAZINES 50 GIRLS WILL HEAR AGENTS AND PUBLICISTS FOR ACTOR EDDIE MURPHY AND ROCK SINGER VAN MORRISON AMONG OTHERS DISCUSS THEIR CAREERS MANY GROUPS HAVE LONGERTERM MENTORING PLANS THE GIRL SCOUT COUNCIL IN THE 10COUNTY WASHINGTON DC AREA HAS ARRANGED FOR GIRLS AGES 12 TO 18 TO SPEND UP TO A MONTH THIS SUMMER IN THE OFFICES OF WOMEN SCIENTISTS ACCOUNTANTS AND OTHER PROFESSIONALS SO FAR 65 GIRLS HAVE SIGNED UP FOR THE FIRST OF THREE SESSIONS WHICH STARTS IN LATE MAY THEIR PARTICIPATION CAN RANGE FROM OBSERVATION TO INTERNSHIPS A COUNCIL SPOKESWOMAN SAYS SMALLER MENTORING PROGRAMS IN THE PAST HAVE SHOWN THAT ADULTS ENJOY THE EXPERIENCE AS MUCH AS THE STUDENTS WOMEN START BUYING INTO THESE GIRLS' DREAMS IN SALT LAKE CITY WOMEN ENGINEERS HAVE GOTTEN AN ENTHUSIASTIC RESPONSE FROM AREA JUNIOR HIGH SCHOOLS TO THEIR RECENT OFFER TO HAVE GIRLS SPEND A DAY WITH THEM ON THE JOB SAYS CHRISTINE SNITKIN OF THE 22MEMBER SOCIETY OF WOMEN ENGINEERS THERE WHICH IS ORGANIZING THE PROGRAM THE GROUP PLANS TO START THE WORKPLACE VISITS IN THE FALL A PENNSYLVANIA STATE UNIVERSITY PROFESSOR IS SEEKING FUNDING TO EXPAND MS WIZ A SCIENCEANDTECHNOLOGY MENTORING PROGRAM IN EACH OF THE PAST TWO YEARS THE PROGRAM HAS BROUGHT TOGETHER 80 GIRLS OUT OF 800 APPLICANTS FOR TWO WEEKS OF INTENSIVE LABORATORY SESSIONS AT PENN STATE THE PROGRAM'S FOUNDER VASUNDARA V VARADAN A PROFESSOR OF ENGINEERING SCIENCE AND ELECTRICAL ENGINEERING AND A MOTHER OF THREE HOPES TO BROADEN THE PROGRAM TO INCLUDE 400 GIRLS A YEAR STATEWIDE AT BOTH PENN STATE AND PRIVATE LABS SOME CORPORATE TRAVEL BUDGETS INCLUDE A NEW ITEM A PLANE TICKET FOR GRANDMA AMID GROWING EMPLOYEE RESISTANCE TO BUSINESS TRAVEL AMOCO AND A HANDFUL OF OTHER COMPANIES ARE PAYING FOR OFFHOURS CARE FOR CHILDREN OR ELDERLY RELATIVES WHILE EMPLOYEES ARE ON THE ROAD EVEN IF THAT MEANS FLYING IN A RELATIVE TO PROVIDE CARE WE NEED PEOPLE TO GO ON BUSINESS TRIPS BUT WE RECOGNIZE THAT THEY HAVE EXTRA EXPENSES WHEN THEY DO SAYS TERRY WEAVER AMOCO'S DIRECTOR OF CORPORATE POLICIES AND WORKFAMILY PROGRAMS WE WANT TO REDUCE THE BARRIERS THAT KEEP PEOPLE WITH FAMILY DUTIES FROM TAKING TRAVELHEAVY JOBS MS WEAVER SAYS OVERNIGHT CHILD CARE CAN COST 60 A DAY OR MORE IF IT'S CHEAPER FOR EMPLOYEES ON LONG TRIPS TO CALL IN A RELATIVE EVEN FROM AFAR AMOCO WILL PAY MS WEAVER SAYS ABOUT 25 AMOCO EMPLOYEES HAVE USED THE PROGRAM SINCE IT BEGAN IN JANUARY TENNECO AND WELLS FARGO HAVE SIMILAR PROGRAMS THE REIMBURSEMENT IS INVALUABLE FOR SINGLE PARENTS OR DUALCAREER COUPLES WHEN BOTH SPOUSES ARE TRAVELING SAYS DIANA FREELAND ADMINISTRATOR OF TENNECO'S EMPLOYEEASSISTANCE PROGRAM TENNECO CAPS SPENDING FOR SUPPLEMENTAL EXPENSES AT 30 A DAY PER EMPLOYEE AND AMOCO AT 750 A YEAR ANOTHER RESTRICTION AT AMOCO PARENTS CAN'T PAY THEIR SPOUSES OR ANYONE ELSE WHO LIVES IN THE HOUSEHOLD FOR PICKING UP CHILDCARE DUTIES WHILE THEY'RE GONE WORKFAMILY PROGRAMS HAVE MADE JOHNSON & JOHNSON MANAGERS MORE UNDERSTANDING OF EMPLOYEES' FAMILY PROBLEMS A STUDY SHOWS THE STUDY TO BE RELEASED TODAY AT A CONFERENCE BOARD GATHERING WENT BEYOND THE USUAL SNAPSHOT SURVEY OF CHILDCARE CENTER USERS TO ASSESS THE IMPACT OVER TWO YEARS OF PROGRAMS IN FLEXIBLE SCHEDULING FAMILY LEAVE MANAGEMENT TRAINING AND CHILD CARE AMONG MORE THAN 2400 EMPLOYEES SURVEYED AT FOUR JOHNSON & JOHNSON UNITS MORE THAN HALF STRONGLY AGREED IN 1992 THAT THEIR BOSSES WERE HELPFUL WHEN THEY HAD TO ATTEND TO A ROUTINE FAMILY OR PERSONAL MATTER VS JUST 36 IN 1990 SHORTLY AFTER THE COMPANY IMPLEMENTED THE WORKFAMILY PROGRAMS SIMILARLY 38 SAID IN 1992 THEY FELT COMFORTABLE BRINGING UP FAMILY ISSUES WITH A SUPERVISOR MORE THAN DOUBLE THE PROPORTION IN 1990 THE STUDY ALSO CREDITS THE PROGRAMS WITH HELPING JOHNSON & JOHNSON RETAIN WORKERS HAVING A SUPPORTIVE SUPERVISOR IS ONE OF THE MOST IMPORTANT FACTORS IN REDUCING NEGATIVE SPILLOVER FROM THE JOB TO HOME LIFE INCLUDING STRESS MARITAL TENSION AND DIMINISHED DEVELOPMENTAL PROSPECTS FOR CHILDREN SAYS ELLEN GALINSKY COPRESIDENT OF THE FAMILIES AND WORK INSTITUTE A NONPROFIT RESEARCH AND CONSULTING FIRM IN NEW YORK THAT DID THE STUDY THE RESEARCH AVOIDS MANY PROBLEMS COMMON TO PREVIOUS STUDIES OF WORKFAMILY PROGRAMS SUCH AS A LACK OF LONGITUDINAL DATA BUT IT OFFERS NO CONCLUSIVE EVIDENCE THAT WORKFAMILY PROGRAMS AID PRODUCTIVITY BY REDUCING TARDINESS OR ABSENTEEISM JOHNSON & JOHNSON SAYS IT CONTINUES TO STUDY THOSE ISSUES A SEPARATE UNIVERSITY OF CHICAGO STUDY ALSO TO BE RELEASED TODAY SHOWS EMPLOYEES WHO USE WORKFAMILY BENEFITS AT FELPRO A SKOKIE ILL AUTOPARTS MAKER ARE MORE LIKELY TO TAKE PART IN QUALITYIMPROVEMENT EFFORTS AS PREVIOUSLY REPORTED WORKERS WHO USED THE BENEFITS PARTICIPATED MORE IN TEAM PROBLEM SOLVING AND SUBMITTED TWICE AS MANY SUGGESTIONS FOR IMPROVING QUALITY PACIFIC BELL A PACIFIC TELESIS UNIT PROVIDES 200 CALIFORNIA SCHOOLS WITH LOWCOST VOICE MAIL TO LINK PARENTS AND TEACHERS TEACHERS TAPE SUMMARIES OF ASSIGNMENTS OR CLASS ACTIVITIES AND PARENTS REPORT STUDENTS' ILLNESSES OR ASK QUESTIONS ABOUT 300 COMPANIES ARE SEEKING PLACES THIS YEAR ON WORKING MOTHER MAGAZINE'S LIST OF THE 100 BEST EMPLOYERS FOR WORKING MOMS 30 MORE THAN LAST YEAR THE LIST WILL BE PUBLISHED IN SEPTEMBER 9304280158 930428 WEATHERFORD SELLS SHARES HOUSTON WEATHERFORD INTERNATIONAL INC SAID IT COMPLETED ITS SALE OF 9350000 COMMON SHARES AT 1050 EACH THE ENERGY SERVICE AND MANUFACTURING CONCERN SAID THE PROCEEDS OF ABOUT 93 MILLION WILL BE USED TO PREPAY CERTAIN DEBT INCURRED FOR A RECENT ACQUISITION AND TO PAY OTHER BANK DEBT THE OFFERING WAS MANAGED BY MERRILL LYNCH & CO AND OTHERS 9304280157 930428 FINANCING BUSINESS WESTCHESTER COUNTY BOARD OF LEGISLATORS WESTCHESTER COUNTY BOARD OF LEGISLATORS WHITE PLAINS NY APPROVED THE SALE OF 40 MILLION IN BONDS INCLUDING A SIGNIFICANT PORTION OF ZEROCOUPON BONDS DESIGNED TO APPEAL TO BEGINNING INVESTORS PRUDENTIAL SECURITIES INC AND LEBENTHAL & CO WERE NAMED SENIOR MANAGERS OF THE ISSUE WHICH WILL BE RELEASED LATER THIS MONTH LEBENTHAL WILL MANAGE THE ZEROCOUPON PORTION OF THE OFFERING THE ZEROCOUPON BONDS WHICH WILL BE CALLED TAXFREE BEGINNER BONDS WILL BE SOLD FOR AS LITTLE AS 1800 EACH AND APPRECIATE TO 5000 IN 19 YEARS TRADITIONALLY MUNICIPAL BONDS ARE SOLD IN AMOUNTS OF 25000 TO 50000 MATURITIES WILL RANGE FROM FIVE TO 19 YEARS WITH ANTICIPATED YIELDS OF 4 TO 53 9304280156 930428 OHIO POWER TO REDEEM BONDS CANTON OHIO OHIO POWER CO SAID IT WILL REDEEM 9598 MILLION PRINCIPAL AMOUNT OUTSTANDING OF ITS 9 7/8 SERIES BONDS DUE IN 1998 THE UNIT OF AMERICAN ELECTRIC POWER CO WILL PAY 10283 OF THE PRINCIPAL AMOUNT AND ACCRUED INTEREST TO THE REDEMPTION DATE WHICH IS JUNE 1 9304280155 930428 BOMBAY CO SALES RISE 29 FORT WORTH TEXAS BOMBAY CO SAID ITS SALES FOR THE FOUR WEEKS ENDED SUNDAY ROSE 29 TO 144 MILLION FROM 112 MILLION A YEAR EARLIER SALES AT STORES OPEN AT LEAST A YEAR INCREASED 14 THE SPECIALTY RETAILER SAID SALES FOR THE 43WEEK PERIOD ENDED SUNDAY INCREASED 26 TO 1861 MILLION FROM 1473 MILLION 9304280154 930428 BILL ADVANCES WOULD FORCE AUDITORS TO REPORT FRAUD WASHINGTON THE HOUSE COMMITTEE ON ENERGY AND COMMERCE APPROVED LEGISLATION THAT WOULD REQUIRE ACCOUNTANTS TO RAISE ALARMS ABOUT ANY FRAUD THEY UNCOVER DURING CORPORATE AUDITS SIMILAR LEGISLATION HAS BEEN SCUTTLED IN THE PAST AND THIS BILL FACES SOME HURDLES DESPITE SUPPORT FROM THE SECURITIES AND EXCHANGE COMMISSION AND THE AMERICAN INSTITUTION OF CERTIFIED PUBLIC ACCOUNTANTS THE BILL WHICH WOULD SPECIFICALLY REQUIRE AUDITORS TO NOTIFY THE SEC OF QUESTIONABLE FINANCIAL PRACTICES THEY DISCOVER ALREADY IS COMPETING WITH OTHER ACCOUNTING LEGISLATION IN THE SENATE THE HOUSE BANKING COMMITTEE IS CONCERNED THAT THE ENERGY AND COMMERCE COMMITTEE'S ACCOUNTING LEGISLATION UNFAIRLY AFFECTS FINANCIAL INSTITUTIONS WHOSE QUARTERLY REPORTS AREN'T FILED WITH THE SEC BUT ARE COVERED BY SEC RULES 9304280153 930428 WHO'S NEWS CRYENCO SCIENCES INC CRYENCO SCIENCES INC DENVER DALE A BRUBAKER 44 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THE MAKER OF VACUUMJACKETED CONTAINER SYSTEMS HE WAS PREVIOUSLY VICE PRESIDENT OF OPERATIONS AT CRYENCO SCIENCES AND SUCCEEDS DON M HARWELL 51 WHO WAS NAMED TO THE NEWLY CREATED POST OF VICE CHAIRMAN 9304280152 930428 INTERNATIONAL MANNESMANN SLATES LAYOFFS AT A NEWS CONFERENCE LAST WEEK MANNESMANN PAINTED A GRIM PICTURE OF THE CURRENT STATE OF ITS BUSINESS LAST YEAR WASN'T GOOD AND THIS YEAR THE OUTLOOK IS WORSE CHAIRMAN WERNER DIETER SAID MANNESMANN IS SCHEDULED TO RELEASE DATA ON 1992 EARNINGS NEXT TUESDAY 9304280151 930428 CFTC PROPOSES RULE TO LET ADVISERS FUNDS BUNCH' THEIR ORDERS WASHINGTON THE COMMODITY FUTURES TRADING COMMISSION PROPOSED A RULE THAT WOULD ALLOW CERTAIN FUND MANAGERS AND INVESTMENT ADVISERS TO COMBINE OR BUNCH ORDERS ON BEHALF OF SOPHISTICATED INVESTORS TRADING IN BOTH SECURITIES AND FUTURES THE COMMISSION CURRENTLY REQUIRES THAT ORDERS BE IDENTIFIED WITH SPECIFIC CUSTOMERS THE CFTC SAID THE PROPOSAL WOULD ALLOW FUND MANAGERS AND INVESTMENT ADVISERS TO RESPOND TO CHANGES IN THE MARKET MORE RAPIDLY CUSTOMERS WOULD HAVE TO AGREE IN ADVANCE TO PARTICIPATE AND ALSO AGREE ON A PLAN FOR ALLOCATING THE FULFILLMENT OF BUNCHED ORDERS NOTICE OF ORDER FULFILLMENT WOULD BE PROVIDED TO CUSTOMERS AT THE END OF EACH TRADING DAY THE CFTC WILL ACCEPT COMMENTS FROM THE PUBLIC BEFORE MAKING THE RULE FINAL SEPARATELY THE CFTC APPROVED A RULE ALLOWING MARKETS AND TRADING FIRMS UNDER ITS JURISDICTION TO MAINTAIN COMPUTERGENERATED RECORDS ON OPTICAL DISKS RATHER THAN ON PAPER 9304280150 930428 INTERNATIONAL JAPANESE VEHICLE EXPORTS TOKYO JAPAN'S EXPORTS OF CARS TRUCKS AND BUSES ROSE 61 IN MARCH FROM THE YEAREARLIER MONTH TO 562791 UNITS FOR THE FIRST YEARONYEAR GAIN IN SIX MONTHS THE JAPAN AUTOMOBILE MANUFACTURERS' ASSOCIATION SAID AN ASSOCIATION SPOKESMAN ASCRIBED MARCH'S PICKUP LARGELY TO A SURGE IN EXPORTS TO CHINA AND THAILAND HOWEVER SHIPMENTS TO THE US AND EUROPEAN COMMUNITY NATIONS REMAINED WEAK GIVEN THE HIGH LEVEL OF JAPANESE INVENTORIES THERE 9304280149 930428 BUSINESS BRIEF COMARCO AND CACI SIGN LETTER TO MERGE IN STOCK TRANSACTION ANAHEIM CALIF COMARCO INC AND CACI INTERNATIONAL INC SAID THEY SIGNED A LETTER OF INTENT TO MERGE IN AN ALLSTOCK TRANSACTION PRODUCING A NEW COMPANY WHICH IF BASED ON MOST RECENT RESULTS WOULD HAVE COMBINED REVENUE OF MORE THAN 220 MILLION OPERATING INCOME OF 124 MILLION AND 3300 EMPLOYEES THE NEW COMPANY COMARCO INTERNATIONAL INC WOULD ISSUE ONE SHARE FOR EACH CACI SHARE AND 1075 SHARES FOR EACH OLD COMARCO SHARE JACK LONDON CHAIRMAN AND CHIEF EXECUTIVE OF CACI WOULD TAKE THOSE TITLES AT THE NEW COMPANY DON M BAILEY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF COMARCO WOULD BE PRESIDENT AND CHIEF OPERATING OFFICER THE NEW BOARD WOULD CONSIST OF EIGHT DIRECTORS FOUR MEMBERS FROM EACH OF THE COMPANIES COMARCO ANAHEIM CALIF PROVIDES FACILITY MANAGEMENT SERVICES ENGINEERING SERVICES AND WIRELESS COMMUNICATIONS PRODUCTS TO THE DEPARTMENT OF DEFENSE AND OTHER CUSTOMERS CACI BASED IN ARLINGTON VA IS AN INFORMATION SYSTEMS AND HIGH TECHNOLOGY SERVICES COMPANY THE COMPANIES SAID THEIR COMBINED CONTRACT BACKLOG WOULD BE MORE THAN 600 MILLION COMARCO SAID IT WAS ATTRACTED BY CACI'S LARGE PRESENCE IN NONDEFENSERELATED GOVERNMENT WORK ITS TECHNOLOGY AND ITS INTERNATIONAL REACH CACI SAID COMARCO WOULD BRING TO IT GEOGRAPHICAL BREADTH IN THE US AND COMPLEMENTARY OPERATIONS COMPANY SPOKESMEN SAID NO LAYOFFS WERE PLANNED AND THAT COST SAVINGS WAS NOT THE BASIS FOR THIS MERGER THE PARTIES EXPECT TO EXECUTIVE A DEFINITIVE AGREEMENT BY MAY 17 AND COMPLETE THE TRANSACTION BY JULY 31 CACI'S MAY 20 SHAREHOLDERS MEETING HAS BEEN POSTPONED SEPARATELY BUT WITH A VIEW TOWARD STARTING THE NEW COMPANY OUT FRESH ACCORDING TO A SPOKESMAN CACI SETTLED SHAREHOLDER LAWSUITS PENDING IN DELAWARE CHANCERY COURT AND THE DISTRICT OF COLUMBIA SETTING UP A 600000 CLAIMS FUND AND PAYING PLANTIFFS' EXPENSES UP TO 573000 THE SETTLEMENT IS CONTINGENT UPON COMPLETION OF THE MERGER 9304280148 930428 WHO'S NEWS WESTERBEKE CORP WESTERBEKE CORP AVON MASS CARLETON F BRYANT III 48 YEARS OLD WAS NAMED CHIEF OPERATING OFFICER AND EXECUTIVE VICE PRESIDENT OF THIS MAKER OF MARINE ENGINE GENERATOR AND MARINE AIRCONDITIONING PRODUCTS HE IS CURRENTLY DIRECTOR OF BUSINESS DEVELOPMENT AT ANALYSIS & COMPUTER SYSTEMS INC IN BURLINGTON MASS HE WILL SUCCEED MARK P SULLIVAN 36 WHO IS RESIGNING TO PURSUE OTHER INTERESTS THE COMPANY SAID 9304280147 930428 ONEOK UNIT ACQUISITION TULSA OKLA AN ONEOK INC UNIT ACQUIRED A 14 INTEREST AND PRODUCTION PAYMENT RIGHTS IN AN ALABAMA OIL FIELD FOR 175 MILLION ONEOK EXPLORATION CO PURCHASED THE WORKING INTEREST IN THE NORTH FRISCO CITY FIELD FROM TWO CLOSELY HELD HOUSTON OIL COMPANIES THE FIELD DISCOVERED IN MARCH 1991 CONTAINS SIX WELLS THAT PRODUCE ABOUT 7000 BARRELS OF OIL EQUIVALENT A DAY ONEOK INC IS A DIVERSIFIED ENERGY COMPANY 9304280146 930428 INTERNATIONAL FORMER PRESIDENT OF ENI ADMITS APPROVING BRIBES MILAN GABRIELE CAGLIARI FORMER PRESIDENT OF ITALY'S STATE ENERGY CONGLOMERATE ENTE NAZIONALE IDROCARBURI ADMITTED AUTHORIZING ILLICIT PAYMENTS OF AT LEAST 26 BILLION LIRE 179 MILLION TO POLITICAL PARTIES IN AN APPEALS COURT HEARING MR CAGLIARI SAID THAT THE MONEY HAD BEEN PAID FROM ENI'S COFFERS TO THE LEADING CHRISTIAN DEMOCRAT PARTY AND THE SOCIALIST PARTY DURING HIS PRESIDENCY ACCORDING TO VITTORIO D'AIELLO HIS LAWYER MR D'AIELLO LATER TOLD REPORTERS THAT MR CAGLIARI REITERATED THAT HE HAD INHERITED THE SYSTEM OF POLITICAL SLUSH FUNDS WHEN HE WAS APPOINTED ENI PRESIDENT IN 1989 AND PERMITTED THE PRACTICE DURING HIS TENURE MR CAGLIARI RESIGNED THIS YEAR AFTER HE WAS ARRESTED ON CORRUPTION CHARGES IN CONNECTION WITH THE WIDESPREAD BRIBERY SCANDAL THAT HAS SHAKEN ITALY THE PAST 15 MONTHS MR D'AIELLO SAID MR CAGLIARI WOULD TAKE FULL RESPONSIBILITY SHOULD A HIGHER FIGURE OF ENI BRIBE PAYMENTS EMERGE FROM THE INVESTIGATION 9304280145 930428 CD YIELDS AT BANKS AND BROKERAGE FIRMS WERE MIXED IN WEEK NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE MIXED IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS REMAINED AT 266 ACCORDING TO AN 18BANK SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS SLIPPED TO 477 FROM 479 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS CREPT UP TO 318 FROM 309 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD SLID TO 506 FROM 509 ACCORDING TO THE SURVEY ON LARGEDENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 90000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE EDGED DOWN TO 269 FROM 270 ON FIVEYEAR JUMBOS THE AVERAGE INCHED DOWN TO 487 FROM 488 ACCORDING TO BANXQUOTE 9304280144 930428 INTERNATIONAL JAPANESE RETAIL SALES DECLINE TOKYO SALES AT JAPAN'S MAJOR DEPARTMENT STORES AND SUPERMARKETS IN MARCH DECLINED 75 TO 1784 TRILLION YEN 1613 BILLION FROM THE YEAREARLIER MONTH THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY SAID IT MARKED THE 10TH CONSECUTIVE MONTH OF DECLINE REFLECTING JAPAN'S SLUGGISH ECONOMY AND COOLED CONSUMER SENTIMENT THAT HAS ESPECIALLY DEPRESSED DEMAND FOR LUXURY ITEMS OVER THE PAST YEAR A MITI OFFICIAL SAID HE DOESN'T SEE ANY SIGN OF RECOVERY IN JAPAN'S RETAIL SALES AT PRESENT SALES IN APRIL HAVE REMAINED SLUGGISH AMID CONTINUING ECONOMIC WEAKNESS AND THE PROSPECT OF SLOW GROWTH OF INCOME AMONG CONSUMERS HE SAID 9304280143 930428 GULF STATES UTILITIES ENTERGY MOVE CLOSER TO COMPLETING MERGER NEW ORLEANS ENTERGY CORP AND GULF STATES UTILITIES CO MOVED A STEP CLOSER TO COMPLETING THEIR 23 BILLION MERGER AS THE LOUISIANA PUBLIC SERVICE COMMISSION VOTED TO APPROVE THE TRANSACTION WITH CERTAIN CONDITIONS THE COMMISSION'S APPROVAL REQUIRES AMONG OTHER THINGS CHANGING THE PROPOSED ALLOCATION OF MERGER SAVINGS BETWEEN CUSTOMERS AND SHAREHOLDERS FROM WHAT ORIGINALLY WAS PLANNED BY THE TWO COMPANIES WHICH SERVE CUSTOMERS IN SEVERAL STATES GULF STATES CUSTOMERS WILL RECEIVE 40 OF THE NONFUEL SAVINGS AND ENTERGY SHAREHOLDERS 60 FOR THE FIRST EIGHT YEARS FOLLOWING A MERGER PREVIOUSLY ENTERGY HAD PROPOSED THAT ALL NONFUEL SAVINGS BE ALLOCATED TO SHAREHOLDERS FOR THE FIRST FIVE YEARS FOLLOWING THE MERGER THE BIG DIFFERENCE IS REGULATORS WILL MEASURE THE MERGER SAVINGS INSTEAD OF JUST BEING TOLD WHAT THE SAVINGS ARE SAID MIKE FONTHAM SPECIAL COUNSEL FOR THE LOUISIANA COMMISSION THE COMMISSION WILL PROJECT CURRENT OPERATION AND MAINTENANCE EXPENDITURES INDEXED FOR INFLATION FOR EACH YEAR AND COMPARE THAT FIGURE WITH WHAT THE COSTS ACTUALLY ARE MR FONTHAM SAID SOME 40 OF THE DIFFERENCE WOULD BE CHANNELED BACK TO CUSTOMERS IN A RATE REDUCTION ARRANGED IN AN ANNUAL REVIEW BEFORE THE COMMISSION THE LOUISIANA COMMISSION'S APPROVAL ALSO IS SUBJECT TO THE FEDERAL ENERGY REGULATORY COMMISSION'S ADOPTION OF A PROVISION ENSURING THAT ENTERGY'S OTHER UTILITY CUSTOMERS AREN'T HURT BY THE MERGER 9304280142 930428 WORLD MARKETS TOKYO STOCK PRICES SOAR 3 ON EASED ANXIETIES ABOUT RISING YEN'S DAMAGE TO JAPANESE FIRMS BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE NIKKEI STOCK AVERAGE SHOT UP 3 TUESDAY WHEN INVESTORS SHRUGGED OFF RECENT WORRIES ABOUT THE HARMFUL EFFECTS OF THE RISING YEN ON JAPANESE COMPANIES THE SURGE TOOK THE NIKKEI 225STOCK INDEX ABOVE 20000 FOR THE FIRST TIME IN MORE THAN A WEEK TRADERS SAID THE RELEASE OF A BULLISH ECONOMIC INDICATOR AND BIG PURCHASES OF STOCKS BY THE GOVERNMENT HELPED PUSH JAPANESE SHARE PRICES UP THE NIKKEI FINISHED AT 2020671 UP 58308 POINTS ON WEDNESDAY IN TOKYO THE NIKKEI INDEX SURGED 40206 POINTS TO CLOSE THE MORNING SESSION AT 2060877 TUESDAY'S VOLUME WAS ESTIMATED AT 600 MILLION SHARES A SHARP INCREASE FROM 2994 MILLION SHARES ON MONDAY GAINERS SWAMPED LOSERS 100487 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES JUMPED 3691 POINTS OR 240 TO 157268 THE BIG LIFT AFTER RETREATS IN SIX OF THE PREVIOUS SEVEN SESSIONS EASED SOME FEARS THE MARKET MIGHT LOSE THE GAINS IT HAS MADE SINCE PRICES BEGAN RALLYING IN EARLY MARCH NOW TRADERS SAID THE NIKKEI MAY BE SETTLING IN AT TODAY'S HIGHER LEVELS NOMURA AND OTHER LARGE JAPANESE SECURITIES HOUSES WERE BIG BUYERS IN TUESDAY'S RALLY PICKING UP SHARES THEY HOPE TO SELL TO CUSTOMERS IN JAPAN AND OVERSEAS GOVERNMENTSPONSORED TRUST BANKS WERE HEAVY BUYERS TOO TRADERS SAID SOME BUYING BY US PENSION FUNDS ALSO HELPED RAISE PRICES SHUNICHI HARI DEPUTY GENERAL MANAGER OF INTERNATIONAL BUSINESS AT YAMAICHI SECURITIES CO WARNED THAT A LOT OF SPECULATIVE SHORTTERM BUYING WAS OCCURRING WHICH MIGHT OVERHEAT THE MARKET BUT HE SAID HE THINKS THE NIKKEI IS LIKELY TO STAY BETWEEN 19000 AND 21000 FOR THE NEXT TWO MONTHS THEN MOVE HIGHER JAPANESE STOCKBROKERS HAVE APPARENTLY SUCCEEDED IN GETTING MORE OF THEIR DOMESTIC RETAIL CLIENTS TO BUY SOMETHING THAT MOST TRADERS SAID IS NECESSARY TO SUSTAIN THE RALLY THE TOKYO EXCHANGE REPORTED TUESDAY THAT THE BALANCE OF STOCKS PURCHASED ON CREDIT A WAY IN WHICH JAPAN'S PRIVATE INVESTORS COMMONLY BUY SHARES ROSE FOR THE SEVENTH CONSECUTIVE WEEK LAST WEEK WHEN THE YEN APPRECIATED NEARLY 3 AGAINST THE US DOLLAR THE SHARE PRICES OF SOME OF JAPAN'S LEADING EXPORTERS FELL ON FEARS THAT THEIR OVERSEAS SALES WOULD SUFFER WHEN THE YEN RISES IT TAKES MORE DOLLARS TO BUY JAPANESE GOODS THOSE CONCERNS SEEMED LONG FORGOTTEN TUESDAY SONY JUMPED 170 YEN OR 36 TO 4900 YEN 4432 NEC SOARED 49 OR 53 TO 980 FOREIGN INVESTORS SUCH AS US PENSION FUNDS WERE APPARENTLY BUYING JAPANESE STOCKS IN THE EXPECTATION THAT THE YEN WILL APPRECIATE FURTHER AND HENCE PUSH UP THE VALUE OF THE SHARES IN DOLLAR TERMS STOCKS GOT A LIFT LATE IN TUESDAY'S SESSION FROM A GOVERNMENT REPORT THAT JAPAN'S INDEX OF LEADING ECONOMIC INDICATORS IMPROVED IN FEBRUARY IT WAS THE SECOND CONSECUTIVE MONTH THE INDEX WAS ABOVE THE SOCALLED BOOMORBUST LINE NOT EVERYONE EXPECTS THE NIKKEI TO STAY IN THE HIGH END OF THE RECENT RANGE THERE SHOULDN'T BE ANYTHING BUT PROFITTAKING SELLING AT THIS LEVEL SAID ALAN LIVSEY AN ANALYST AT KLEINWORT BENSON INTERNATIONAL INC UNLESS THERE'S A BIG IMPROVEMENT IN TRADING VOLUME THE NEXT LEG OF THE RALLY WILL BE WEAKER IF IT HAPPENS AT ALL LONDON STOCK PRICES ENDED HIGHER IN A LATE TURNAROUND DRIVEN BY THE FUTURES MARKET FRANKFURT SHARES ENDED BROADLY WEAKER FOR THE SIXTH SESSION IN A ROW IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX GAINED 104 POINTS TO 28327 THE FT 30STOCK INDEX ROSE 14 POINTS TO 22241 VOLUME WAS 5966 MILLION SHARES COMPARED WITH 4919 MILLION SHARES A DAY EARLIER THE LONDON MARKET IGNORED BRITISH EMPLOYERS' BULLISH REPORT ON THE STRONGEST BUSINESS CONFIDENCE IN A DECADE CITING IMPROVED PROSPECTS FOR ECONOMIC RECOVERY RATHER INVESTORS FOCUSED ON INFLATION DANGERS THAT CAN ACCOMPANY GROWTH BUT WHEN THE JUNE STOCKINDEX CONTRACT IN THE FUTURES MARKET DISPLAYED RESILIENCE STOCK MARKET PLAYERS COVERED SHORT OR OVERSOLD POSITIONS WHICH TURNED SHARE PRICES AROUND THE MARKET ALSO WAS CHEERED BY A REVIVAL IN THE DOLLAR'S FORTUNES AS STERLING FELL WHICH HELPS BOOST BRITISH COMPANIES DEPENDENT ON FOREIGN EARNINGS IN FRANKFURT THE DAX 30STOCK INDEX FELL 903 POINTS TO 164078 NEAR THE INTRADAY LOW AFTER OPENING WITH A GAIN OF ABOUT 7 POINTS ON COMMENTS BY GERMANY'S CENTRAL BANK PRESIDENT HELMUT SCHLESINGER IN A NEWS REPORT THAT GROWING REALIZATION OF THE DEPTH OF THE RECESSION HAS ADDED URGENCY TO INTERESTRATE MOVES BUT PRICES LATER WERE PRESSURED BY FUTURESDRIVEN SELLING PARIS STOCKS STAGED A LATE REBOUND TO END WITH MODERATE GAINS HELPED UP BY COMPUTERRELATED DEALINGS MADRID SHARE PRICES LOST GROUND IN BROADBASED SELLING ON PROFITTAKING PARTLY STEMMING FROM PERSISTENT RUMORS OF A DEVALUATION AHEAD FOR THE SPANISH PESETA MILAN STOCKS RALLIED ON MOVES TO FORM A NEW ITALIAN GOVERNMENT THAT IS EXPECTED TO PROMOTE AUSTERITY AND PRIVATIZATIONS SYDNEY SHARES FELL THOUGH GOLD SHARES CONTINUED THEIR CLIMB HONG KONG STOCKS DECLINED ON PROFITTAKING AHEAD OF FURTHER NEGOTIATIONS BETWEEN BRITAIN AND CHINA ON THE COLONY'S FUTURE SEOUL PRICES WERE DRIVEN DOWN AS INVESTORS WERE SCARED OFF BY INTENSIFICATION OF AN ANTICORRUPTION DRIVE AS THE GOVERNMENT UNVEILED AN INVESTIGATION OF MILITARY PURCHASING PROGRAMS AMONG CORPORATE DEVELOPMENTS IN LONDON BRITISH AEROSPACE JUMPED 6 PENCE OR 19 TO 322 PENCE 511 THE COMPANY TOLD THE ANNUAL MEETING THAT ITS ROVER AUTO MAKER SHOULD MOVE THROUGH ITS BREAKEVEN POINT IN 1993 CITING THE WEAKER POUND'S AID TO EXPORTS AND ROVER'S COST CUTS AND DEVELOPMENT OF NEW CAR MODELS ROVER CUT ITS 1992 OPERATING LOSS TO 49 MILLION 777 MILLION FROM A 52 MILLION DEFICIT IN 1991 IN FRANKFURT MANNESMANN FELL 180 MARKS TO 263 MARKS 16790 THE INDUSTRIAL GROUP SAID IT WOULD LAY OFF THIS YEAR ABOUT AS MANY EMPLOYEES AS IT DID LAST YEAR WHICH TOTALED 7500 LEAVING A WORLDWIDE WORK FORCE OF 136700 AT YEAR END RWE SLIPPED 50 PFENNIGS TO 392 MARKS THE ENERGY AND ENGINEERING GROUP CITING STABLE EARNINGS SAID THE CHANCES ARE GOOD IT WILL MAINTAIN ITS DIVIDEND AT 12 MARKS A SHARE FOR THE FISCAL YEAR ENDING JUNE 30 IN AMSTERDAM AKZO CLIMBED 44 GUILDERS OR 29 TO 15730 GUILDERS 8938 IN LINE WITH ANALYSTS' EXPECTATIONS THE CHEMICAL COMPANY'S FIRSTQUARTER PROFIT FELL 23 TO 1579 MILLION GUILDERS 897 MILLION FROM A YEAR EARLIER PRESSURED BY FIBER OPERATIONS AND ONETIME CHARGES TOTALING 131 MILLION GUILDERS RELATED TO AN ASSET SALE IN THAT LINE YEAREARLIER RESULTS DIDN'T HAVE ANY SPECIAL ITEMS IN BRUSSELS PETROFINA ROSE 5 BELGIAN FRANCS TO 2690 FRANCS 8334 THE OIL COMPANY CONFIRMED THAT THE FRENCH STATEOWNED OIL CONCERN ELF AQUITAINE OWNS A 498 STAKE IN PETROFINA BUT SAID ELF DOESN'T PLAN TO INCREASE ITS HOLDING 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 9304280141 930428 WHO'S NEWS STRUCTURAL DYNAMICS RESEARCH CORP STRUCTURAL DYNAMICS RESEARCH CORP MILFORD OHIO WILLIAM P CONLIN 59YEAROLD PRESIDENT OF CALCOMP INC A UNIT OF LOCKHEED CORP WAS NAMED A DIRECTOR OF THIS SUPPLIER OF MECHANICAL DESIGN AUTOMATION SOFTWARE AND ENGINEERING SERVICES TO THE AEROSPACE AUTOMOTIVE AND INDUSTRIAL MARKETS THE MOVE INCREASES THE COMPANY'S BOARD TO SEVEN MEMBERS 9304280140 930428 ROCKEFELLER CENTER MAY CUT PAYOUT AGAIN DUE TO LOAN PACTS NEW YORK ROCKEFELLER CENTER PROPERTIES INC SAID IT MAY NEED TO CUT ITS ANNUAL DIVIDEND BETWEEN 20 AND 30 NEXT YEAR AS A RESULT OF A NEW AGREEMENT WITH LENDERS TO RETIRE SOME OF ITS COMMERCIAL PAPER BORROWINGS THE ANNOUNCEMENT WHICH FOLLOWS A 48 CUT IN THE DIVIDEND LAST DECEMBER TO 1 A SHARE DROVE DOWN THE COMPANY'S SHARES 50 CENTS TO 6875 IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY ALTHOUGH THERE HAS BEEN SPECULATION THAT THE DIVIDEND WOULD BE CUT AGAIN IT CAME AS A SURPRISE TO SOME INVESTORS BECAUSE THE COMPANY HAD SAID IT INTENDED TO SUSTAIN THE 1 ANNUAL PAYMENT THROUGH 1994 THE NEW YORK REAL ESTATE INVESTMENT TRUST WHICH HAS AS ITS PRINCIPAL ASSET A 13 BILLION MORTGAGE ON MANHATTAN'S ROCKEFELLER CENTER SAID THAT FOUR BANKS HAD AGREED TO EXTEND A LETTER OF CREDIT SUPPORTING A PORTION OF THE COMPANY'S COMMERCIAL PAYMENT FACILITY UNTIL DECEMBER 15 1994 THE LETTER OF CREDIT WAS SET TO EXPIRE THIS MAY IN EXCHANGE THE REIT HAS ALREADY REDUCED A 200 MILLION FACILITY TO 100 MILLION AND AGREED TO RETIRE THE REST IN SIX INSTALLMENTS BY DECEMBER 1994 THE COMPANY SAID IT WOULD FUND THE REDUCTIONS BY SELLING INVESTMENT SECURITIES AND REDUCING CASH FLOW THAT'S USED FOR DIVIDENDS 9304280139 930428 INTERNATIONAL CS HOLDING REPORTS CONSOLIDATED EARNINGS INCREASED 5 IN 1992 NET INCOME FOR 1992 ROSE TO 103 BILLION SWISS FRANCS 7267 MILLION THE HIGH END OF ANALYSTS' PREDICTIONS FROM 980 BILLION FRANCS IN 1991 SETASIDES FOR DEPRECIATION AND PROVISIONS AND WRITEOFFS FOR BAD LOANS TOTALED 18 BILLION FRANCS UP FROM 13 BILLION FRANCS IN 1991 CHAIRMAN RAINER GUT WARNED THAT CONTINUING HIGH PROVISIONS WOULD BE NEEDED FOR LOAN LOSSES PARTICULARLY IN SWITZERLAND HOWEVER HE SAID THE IMPROVEMENT IN OUR CASH FLOW SUGGESTS THAT WE CAN ANTICIPATE A SUBSTANTIAL RISE IN CONSOLIDATED ANNUAL PROFIT CS HOLDING SAID IT WOULD PAY AN UNCHANGED DIVIDEND OF 75 FRANCS A SHARE YESTERDAY CS HOLDING BEGAN TRADING AMERICAN DEPOSITARY RECEIPTS IN THE US IN THE OVERTHECOUNTER MARKET THE ADR FACILITY DEPOSITARY IS BANK OF NEW YORK UNDER THE PROGRAM 100 ADRS EQUAL ONE SWISS BEARER SHARE LOOKING AHEAD MR GUT SAID CS HOLDING'S RECENT ACQUISITION OF SWISS VOLKSBANK WOULD STRENGTHEN ITS EARNINGS POTENTIAL IN THE YEARS TO COME THOUGH THERE REMAIN UNCERTAINTIES ABOUT THE LEVEL OF PROVISIONS LIKELY TO BE NEEDED THIS YEAR AT SWISS VOLKSBANK FOR BAD DEBTS THESE AREN'T EXPECTED TO BE HIGHER THAN IN 1992 9304280138 930428 WHO'S NEWS FAMILY AIR FOUNDER AGREES TO STEP DOWN AT DOT'S REQUEST LAWSUITS AGAINST OWNER CITED STARTUP CARRIER STILL SEEKS FEDERAL AUTHORITY TO FLY BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL THERE'S A DIVORCE IN THE MAKING AT FAMILY AIRLINES THE LAS VEGAS STARTUP THAT IS HAVING TROUBLE GETTING OFF THE GROUND M BARRY MICHAELS THE CARRIER'S FOUNDER AND MAJORITY OWNER HAS AGREED TO LEAVE THE CARRIER GIVE UP PART OF HIS STOCK AND DIVEST THE REST IN SIX MONTHS THE TENTATIVE AGREEMENT STRUCK WITH A GROUP OF PILOT INVESTORS WHO SOURED ON MR MICHAELS'S LEADERSHIP COMES LESS THAN TWO WEEKS AFTER THE DEPARTMENT OF TRANSPORTATION TOOK THE UNUSUAL STEP OF SAYING IT WOULD FIND FAMILY UNFIT TO FLY UNLESS MR MICHAELS AND HIS WIFE HOLLY AGREE TO LEAVE THE COMPANY IN AN APRIL 16 LETTER TO FAMILY'S WASHINGTON LAWYER THE TRANSPORTATION DEPARTMENT'S OFFICE OF AVIATION ANALYSIS SAID IT WAS CONCERNED ABOUT THE COUPLE'S FAILURE TO DISCLOSE A NUMBER OF LAWSUITS AND JUDGMENTS AGAINST THEM IN FAMILY'S APPLICATION FOR AUTHORITY TO FLY ALTHOUGH THE MICHAELS'S DEPARTURE IS SUBJECT TO A DEFINITIVE AGREEMENT MR MICHAELS SAID IN A TELEPHONE INTERVIEW YESTERDAY THAT HE HAD GIVEN UP HIS POST AS CHIEF EXECUTIVE AND THAT HE EXPECTED TO RESIGN ALTOGETHER BY THE END OF THIS WEEK HE DENIED ANY WRONGDOING AND SAID HE WAS LEAVING BECAUSE THE TRANSPORTATION DEPARTMENT'S LETTER LEFT HIM LITTLE CHOICE I CAN'T EVEN BE A JANITOR OR A CONSULTANT FOR MY AIRLINE SAID MR MICHAELS A 51YEAROLD FORMER CHIROPRACTOR AND ENTREPRENEUR WHO PREVIOUSLY STARTED SEVERAL BUSINESSES IN THE LOS ANGELES AREA MR MICHAELS SAID IT WAS THE FAILURE OF SOME OF THOSE BUSINESSES THAT LED TO THE LAWSUITS AGAINST HIM EARLIER THIS MONTH ABOUT 50 PILOTS WHO HAD EACH INVESTED AT LEAST 30000 EACH IN FAMILY AIRLINES A CARRIER WHICH PROMISED INEXPENSIVE CROSSCOUNTRY FARES WITH NO RESTRICTIONS SUED THE MICHAELS IN FEDERAL COURT IN LAS VEGAS THE SUIT ALLEGES THE MICHAELS MISLED INVESTORS BY AMONG OTHER THINGS FAILING TO DISCLOSE THE PREVIOUS LAWSUITS AND BY USING SOME OF THE INVESTORS' MONEY FOR THEIR OWN PERSONAL PURPOSES MR MICHAELS AND R TODD JENSEN A LAS VEGAS LAWYER REPRESENTING THE PILOTS SAID THE AGREEMENT CALLS FOR BOTH THE PILOTS' LAWSUIT AND A COUNTERSUIT BY FAMILY AIRLINES TO BE DROPPED MR MICHAELS SAID HE'S ALSO GIVING UP NEARLY HALF OF HIS 87 STAKE AND THAT THE REMAINDER WILL GO INTO A TRUST AS HE SEEKS TO SELL IT IN THE NEXT SIX MONTHS ALTHOUGH THE REVELATION OF MR MICHAELS'S CHECKERED BUSINESS HISTORY HAS PLUNGED THE AIRLINE INTO TURMOIL IN RECENT WEEKS THE PILOTS WHO INVESTED IN THE AIRLINE AREN'T GIVING UP MR JENSEN THE ATTORNEY SAYS FAMILY AIRLINES WILL SEEK ADDITIONAL CAPITAL AND TRANSPORTATION DEPARTMENT APPROVAL TO GET OFF THE GROUND 9304280137 930428 WHO'S NEWS NORWEST CORP NORWEST CORP MINNEAPOLIS IAN M ROLLAND CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF LINCOLN NATIONAL CORP AND ITS LINCOLN NATIONAL LIFE INSURANCE CO UNIT WAS NAMED A DIRECTOR OF THIS BANK HOLDING FIRM RAISING BOARD MEMBERSHIP TO 17 9304280136 930428 TRANSPORTATION LOCAL BUSINESSES FIGHT TO FORESTALL AIRLINESERVICE CUTS BY JAMES S HIRSCH AMERICAN AIRLINES HAS A DEVOTED FRIEND IN DAVID RIESE OR SO IT WOULD SEEM AS PRESIDENT OF A PROPERTYMANAGEMENT COMPANY IN RALEIGH NC MR RIESE IS OFFERING A 5 REBATE TO TENANTS WHO SUBMIT AN AMERICAN TICKET WITH THEIR MONTHLY RENT THE GOAL IS TO HELP INCREASE THE NUMBER OF AMERICAN PASSENGERS IN THE RALEIGHDURHAM AREA THE GOAL IS ALSO NOT WITHOUT SELFINTEREST AMERICAN HAS THREATENED TO DISMANTLE ITS HUB AT RALEIGHDURHAM INTERNATIONAL AIRPORT UNLESS ITS TRAFFIC INCREASES THERE AND SUCH AN INCREASE IS MR RIESE'S AIM EVEN THOUGH I MAY BE A PIPSQUEAK IN THE POND I WANT MR CRANDALL TO UNDERSTAND THAT WE REALLY WANT HIM TO STAY MR RIESE SAYS REFERRING TO AMERICAN CHAIRMAN ROBERT L CRANDALL MR RIESE'S UNUSUAL SCHEME UNDERSCORES THE DESPERATION NOW FELT BY MANY BUSINESS PEOPLE ACROSS THE COUNTRY THE AIRLINE INDUSTRY'S GREAT DOWNSIZING IS DOING FAR MORE THAN INCONVENIENCING INDIVIDUAL PASSENGERS IT IS ALSO THREATENING THE ECONOMIC LIFEBLOOD OF MANY CITIES WHERE AIR SERVICE IS USED TO RECRUIT EVERYTHING FROM CORPORATE HEADQUARTERS TO CONVENTIONS IN THE RALEIGHDURHAM AREA FOR EXAMPLE THE AMERICAN HUB HAS PLAYED A BIG ROLE IN THE GROWTH OF THE RESEARCH TRIANGLE PARK WHICH COMPRISES COMPANIES EMPLOYING 33000 PEOPLE LOCAL GOVERNMENTS HAVE LONG COURTED CARRIERS WITH TAX BREAKS AND SUBSIDIES LIKE A PROFESSIONAL SPORTS TEAM A HUB NOT ONLY GENERATES MANY JOBS BUT IS ALSO A SOURCE OF CIVIC PRIDE AND CITY FATHERS WILL DO MOST ANYTHING TO KEEP ONE BUT NOWADAYS BUSINESSES ARE DREAMING UP PROMOTIONS TO BOOST TICKET SALES AND DETER CARRIERS FROM CUTTING SERVICE IN NASHVILLE TENN FOR EXAMPLE THE CHAMBER OF COMMERCE LAST YEAR RAFFLED OFF SEVEN DONATED NISSAN SENTRAS TO OUTOFTOWN AIRLINE PASSENGERS WHO FLEW THROUGH THE NASHVILLE AIRPORT THE MOVE WHICH COST THE CHAMBER MORE THAN 100000 IN PROMOTION COSTS WAS DESIGNED TO HELP AMERICAN WHOSE NASHVILLE HUB NEEDS MORE TRAFFIC TO TURN A PROFIT THE CITY OF NASHVILLE ITSELF ISN'T IDLE IT HAS BID 5 MILLION FOR USAIR'S ROUTE FROM CHARLOTTE NC TO LONDON'S GATWICK AIRPORT IF APPROVED THE MOVE WOULD MAKE NASHVILLE THE FIRST US CITY TO OWN AN AIR ROUTE NASHVILLE SAYS IT IS MAKING THE BID TO AID ITS OWN ECONOMIC DEVELOPMENT NOT AS A CARROT TO KEEP AMERICAN WHICH WOULD LEASE THE ROUTE AMERICAN HOWEVER SAYS A SUCCESSFUL BID BY NASHVILLE WOULD STRENGTHEN THE HUB AND BE A MAJOR MARKETING PLUS TV ADS SUPPORTYOURAIRLINE MOVEMENTS ARE POPPING UP IN MANY SMALLER CITIES WHERE THE GREATEST CUTBACKS ARE EXPECTED AMARILLO NATIONAL BANK IN TEXAS FOR EXAMPLE INTENDS TO GIVE AWAY AMERICAN TICKETS TO CUSTOMERS WHO OPEN NEW ACCOUNTS AND TO RUN WARM AND FUZZY TELEVISION ADS PROMOTING AMERICAN THE BANK FEARS THE AIRLINE WILL CUT JET SERVICE TO AMARILLO IN JANUARY THE SAN JOSE CALIF CHAMBER OF COMMERCE FEARING THAT AMERICAN WOULD SCALE BACK ITS HUB THERE SOUGHT PLEDGES FROM ITS MEMBERS TO USE THE LOCAL AIRPORT AND THEREFORE FLY AMERICAN INSTEAD OF USING AIRPORTS IN OAKLAND OR SAN FRANCISCO A HUB IS ONE MORE THING THAT CREATES A BIGLEAGUE IMAGE ABOUT A COMMUNITY SAYS JIM TUCKER THE CHAMBER'S ECONOMICDEVELOPMENT DIRECTOR LAST MONTH HOWEVER AMERICAN DEEPENED ITS PLANNED CUT IN SERVICE TO SAN JOSE TO 40 AFTER SOUTHWEST AIRLINES ANNOUNCED ITS INTENTION TO SERVE THAT MARKET INDEED WHILE AIRLINES APPRECIATE THE HELPING HAND THEY HAVE DIFFERENT OBJECTIVES THAN THE COMMUNITIES THEY SERVE THEIR TOP PRIORITY NOW IS CUTTING COSTS TO REVERSE THEIR MASSIVE LOSSES FACING EXCESS CAPACITY VIRTUALLY ALL MAJOR US AIRLINES ARE PARING FLEETS BY THE END OF THE SUMMER THE INDUSTRY'S CAPACITY OR TOTAL NUMBER OF SEATS IS PROJECTED TO FALL BY AS MUCH AS 10 COMPARED WITH THE YEARAGO FIGURE FORCES CAUSING THIS RETRENCHMENT INDUSTRY OBSERVERS SAY ARE NOT LIKELY TO BE REVERSED BY GRASSROOTS CAMPAIGNS THAT PROMISE MORE PASSENGERS THESE EFFORTS ARE WELLMEANING BUT THEY WON'T HAVE ANY POSITIVE EFFECTS SAYS MICHAEL J BOYD PRESIDENT OF AVIATION SYSTEMS RESEARCH CORP A CONSULTING FIRM IN GOLDEN COLO THE FACT THAT AMERICAN IS EFFECTIVELY CLOSING ITS HUB IN SAN JOSE IS BECAUSE OF CHANGES IN THE AIRLINE INDUSTRY IT'S NOT A REFLECTION ON THE TOWN A SPOKESMAN FOR AMERICAN A UNIT OF AMR CORP SAYS COMMUNITY INITIATIVES CAN INFLUENCE THE AIRLINE'S ROUTE PLANS IN ISOLATED CASES AMERICAN FOR EXAMPLE DELAYED ITS DECISION FOR 18 MONTHS ON WHETHER TO CLOSE THE RALEIGHDURHAM HUB AFTER A DELEGATION OF AREA BUSINESSES LED BY GOV JIM HUNT VISITED THE COMPANY'S FORT WORTH TEXAS HEADQUARTERS GOV HUNT GAVE THE AIRLINE A LIST OF 50 RALEIGHDURHAM BUSINESSES THAT HAVE VOWED TO INCREASE THEIR USE OF AMERICAN WHICH HAS 212 DEPARTURES A DAY FROM ITS NORTH CAROLINA HUB LOCAL CAMPAIGNS ONLY INFLUENCE US IN CASES WHERE THEY MAKE ECONOMIC SENSE AND RALEIGHDURHAM BUSINESSES CAME TO US WITH SPECIFIC COMMITMENTS THE AMERICAN SPOKESMAN SAYS BUT IF SOMEONE JUST SAYS PLEASE WE DESERVE JET SERVICE BECAUSE WE LIKE JETS MORE THAN COMMUTER PLANES' THAT WON'T HOLD WATER IN THIS ENVIRONMENT PLEDGING LOYALTY TO ONE AIRLINE CAN ALSO BACKFIRE ON A COMMUNITY COMPETING AIRLINES INVARIABLY TAKE OFFENSE AND IF THEY LOSE ENOUGH PASSENGERS THEY COULD EASILY CUT BACK SERVICE THE NO 2 CARRIER IN RALEIGHDURHAM USAIR IS IRATE OVER EFFORTS BY THE RALEIGHDURHAM REGIONAL ASSOCIATION A REGIONAL CHAMBER OF COMMERCE TO PROMOTE AMERICAN WE'RE CHAMBER MEMBERS AS WELL AND WE DON'T FEEL IT'S FAIR TO PROMOTE ONE MEMBER OVER ANOTHER SAYS A SPOKESMAN FOR USAIR A UNIT OF USAIR GROUP INC WE'RE WILLING TO COMPETE BUT WOULD LIKE TO DO SO ON AN EVEN PLAYING FIELD SMEDES YORK CHAIRMAN OF THE REGIONAL CHAMBER SAYS PRESERVING THE AMERICAN HUB WILL BENEFIT THE LOCAL ECONOMY AND THEREFORE HELP ALL AIRLINES DELTA AIR LINES HAS WITHDRAWN ITS MEMBERSHIP FROM CHAMBERS OF COMMERCE IN PHOENIX AND COLUMBUS OHIO AFTER BOTH GROUPS RALLIED SUPPORT FOR AMERICA WEST AIRLINES AMERICA WEST WHICH IS IN CHAPTER 11 BANKRUPTCY PROCEEDINGS HAS ITS HEADQUARTERS AND LARGEST HUB IN PHOENIX AND A MINIHUB IN COLUMBUS IF WE'RE IN A COMMUNITY WHERE WE'RE MAKING A SIGNIFICANT CONTRIBUTION WE EXPECT TO BE TREATED FAIRLY A DELTA SPOKESMAN SAYS AIRLINES RECEIVING FAVORED TREATMENT FROM LOCAL BUSINESSES HE ADDS MAY NOT BE GETTING MUCH OF A FAVOR THESE CAMPAIGNS HE SAYS BRING ATTENTION TO CARRIERS THAT ARE HAVING PROBLEMS AND PEOPLE LIKE TO GO WITH A WINNER 9304280135 930428 INTERNATIONAL SOUTH KOREAN MILITARY FACES INQUIRY OVER ITS ARMS PROCUREMENT PRACTICES BY STEVE GLAIN STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA IN A MOVE THAT COULD FURTHER TRAUMATIZE THE SOUTH KOREAN MILITARY AND EMBARRASS FOREIGN DEFENSE CONTRACTORS THE GOVERNMENT HAS LAUNCHED AN INVESTIGATION INTO PROCUREMENT PRACTICES IN THE COUNTRY'S 6 BILLIONAYEAR ARMS MARKET KOREA'S BOARD OF AUDIT AND INSPECTION AN INDEPENDENT WATCHDOG AGENCY SAID 43 INSPECTORS HAD BEEN APPOINTED TO CONCENTRATE ON IDENTIFYING THE STRUCTURAL IRREGULARITIES THAT APPEAR TO BE BUILT INTO THE ACQUISITION OF DEFENSE GOODS THE INVESTIGATION PROVIDES MORE MOMENTUM FOR AN ANTICORRUPTION CAMPAIGN THAT HAS BECOME THE DEFINING POLICY OF PRESIDENT KIM YOUNG SAM'S RECENTLY INSTALLED ADMINISTRATION SUCH AN INVESTIGATION IS LONG OVERDUE SAY DIPLOMATS KOREAN POLITICIANS AND EVEN SOME DEFENSE CONTRACTORS THOUGH THE IMPETUS BEHIND IT ISN'T CLEAR INSPECTORS WENT INTO ACTION FOLLOWING STATEMENTS BY RETIRED AIR FORCE GEN CHUNG YONG HU ABOUT THE KOREAN FIGHTER PROJECT WHICH IS BEING DEVELOPED AROUND GENERAL DYNAMICS CORP'S F16 FIGHTERBOMBER GENERAL DYNAMICS WON THE 52 BILLION CONTRACT IN APRIL 1991 WHEN THE GOVERNMENT CITING COST CONSIDERATIONS REVERSED AN EARLIER DECISION TO AWARD IT TO MCDONNELL DOUGLAS CORP ON MONDAY GEN CHUNG WHO IS UNDER INVESTIGATION FOR HIS ALLEGED ROLE IN A MONEYFORPROMOTION SCANDAL TOLD KOREAN REPORTERS HE WAS FORCED TO RESIGN BY AIDES TO THENPRESIDENT ROH TAE WOO AFTER HE REFUSED TO ENDORSE THE GOVERNMENT'S REVERSAL OF ITS DECISION ON THE JET FIGHTER HE ALSO ALLEGED THAT FORMER US AIR FORCE MAJ GEN JACK GREGORY SUPPORTED THE F16 AS KOREA'S FRONTLINE FIGHTER IN TALKS WITH KOREAN AIR FORCE OFFICIALS KOREA OPERATES TWO SQUADRONS OF LATEMODEL F16S BASED ON GEN CHUNG'S COMMENTS SOME KOREAN NEWSPAPERS REPORTED THAT GEN GREGORY LOBBIED THE GOVERNMENT TO SCRAP THE ORIGINAL DECISION AND SWITCH TO THE F16 GEN GREGORY WHO IS RETIRED LEFT KOREA NEARLY THREE YEARS BEFORE THE INITIAL AWARD WAS ANNOUNCED AND NEARLY FOUR YEARS BEFORE IT WAS REVERSED THERE WAS NOTHING IN GEN CHUNG'S COMMENTS TO SUGGEST THAT THE US AIR FORCE GENERAL HAD RETURNED TO KOREA IN ANOTHER CAPACITY TO INFLUENCE THE GOVERNMENT'S DECISION ON THE CONTRACT GENERAL DYNAMICS'S WINNING BID WAS INVESTIGATED BY THE US GENERAL ACCOUNTING OFFICE AND CLEARED TO BE SUBMITTED TO CONGRESS FOR APPROVAL GEN GREGORY'S WHEREABOUTS ARE UNKNOWN SAID A US MILITARY SPOKESMAN WHO HAD NO OTHER COMMENT ON THE MATTER OFFICIALS AT KOREA'S BOARD OF AUDIT AND INSPECTION WEREN'T AVAILABLE TO COMMENT AT ANY OTHER TIME GEN CHUNG'S STATEMENTS ABOUT THE FIGHTER PROGRAM MIGHT HAVE BEEN DISREGARDED BUT NOWADAYS IT IS FUEL FOR THE REFORMISTS' FIRE GIVEN THE WIDENING SCOPE OF THE MONEYFORPROMOTION SCANDAL THAT HAS ALREADY SHAKEN SOUTH KOREA'S MILITARY AT THE CENTER OF THE SCANDAL IS THE FORMER CHIEF OF NAVAL OPERATIONS KIM CHONG HO WHO PROSECUTORS ALLEGE ACCEPTED 365 MILLION WON 459000 FROM SUBORDINATES IN EXCHANGE FOR PROMOTIONS BETWEEN 1989 AND 1991 YESTERDAY PROSECUTORS ARRESTED THE NAVY OFFICER AND THE FORMER MARINE CORPS COMMANDER THE LATTER FOR ALLEGEDLY PAYING THE NAVY CHIEF FOR HIS PROMOTION TO MARINE COMMANDER PRESIDENT KIM'S ANTICORRUPTION DRIVE ALREADY HAS LED TO THE DOWNFALL OF SOME OF KOREA'S MOST POWERFUL POLITICIANS AND CIVIL SERVANTS LAUNCHED AGAINST THE MILITARY WHICH MANY VOTERS ASSOCIATE UNFAVORABLY WITH KOREA'S AUTHORITARIAN PAST THE CAMPAIGN HAS GAINED IN POPULARITY IN A STATEMENT MCDONNELL DOUGLAS SAID IT WAS FOLLOWING THE REPORTS WITH CONSIDERABLE INTEREST AN OFFICIAL AT GENERAL DYNAMICS HAD NO COMMENT ON MR CHUNG'S TESTIMONY BUT ADDED HE WELCOMED THE GOVERNMENT'S INVESTIGATION INTO KOREA'S ARMSPROCUREMENT SYSTEM SINCE 1991 KOREA'S DEFENSE MINISTRY HAS BEEN ON AN AGGRESSIVE SHOPPING SPREE FOR SOPHISTICATED WEAPONS AND MILITARY TECHNOLOGY TO BUILD UP THE COUNTRY'S DEFENSE INDUSTRY IN ADDITION TO THE FIGHTERJET PROGRAM KOREA IS DEVELOPING A BLUEWATER NAVY INCLUDING A FLEET OF SUBMARINES PURCHASED ABROAD THE ACQUISITION OF SUCH A COSTLY ARSENAL WILL BE THE FOCUS OF THE NEW INVESTIGATION AND COULD CAUSE A SCANDAL AMONG THE HUNDREDS OF SENIOR DEFENSE MINISTRY OFFICIALS WHO HAVE TRAVELED TO EUROPE FOR WEAPONS DEMONSTRATIONS AS GUESTS OF DEFENSE CONTRACTORS THE JUNKETS WELL KNOWN INSIDE THE DEFENSE COMMUNITY FOR THEIR EXTRAVAGANCE RUN COUNTER TO THE AUSTERITY PROMOTED BY PRESIDENT KIM AS PART OF HIS ANTICORRUPTION CAMPAIGN US DEFENSE CONTRACTORS SAY THEY GENERALLY AVOID SPONSORING SUCH TOURS UNDER THE FOREIGN CORRUPT PRACTICES ACT US BUSINESSES ARE BOUND TO FOLLOW US LAWS FORBIDDING SUCH PRACTICES EVEN WHEN BIDDING FOR OVERSEAS CONTRACTS FOR THE PAST TWO YEARS EUROPEAN DEFENSE COMPANIES HAVE BEEN SNATCHING MARKET SHARE FROM US RIVALS WHO ONCE DOMINATED KOREAN ARMS PURCHASES 9304280134 930428 WHO'S NEWS KOENEKE QUITS FIRST BOSTON FOR MERGERS AT MERRILL NEW YORK MICHAEL KOENEKE QUIT AS FIRST BOSTON CORP'S HEAD OF MERGERS TO BECOME COHEAD OF MERGERS AT MERRILL LYNCH & CO MR KOENEKE 46 YEARS OLD BECOMES THE LATEST AND ONE OF THE HIGHESTRANKING INVESTMENT BANKERS TO LEAVE FIRST BOSTON THIS YEAR THE BIG INVESTMENT BANK SUFFERED AN EXODUS OF DOZENS OF TRADERS AND INVESTMENT BANKERS ANGERED OVER COMPENSATION THEY SAY IS SHARPLY BELOW THAT OF SOME COMPETITORS MR KOENEKE COULDN'T BE REACHED BUT BOTH FIRMS CONFIRMED THE MOVE AT MERRILL MR KOENEKE WILL JOIN JACK LEVY AS ONE OF TWO COHEADS OF MERGERS ALAIN LEBEC FORMERLY COHEAD OF MERGERS AT MERRILL LAST MONTH BECAME HEAD OF A TELECOMMUNICATIONS MEDIA AND TECHNOLOGY GROUP AT MERRILL MR KOENEKE BECAME COHEAD OF MERGERS AT FIRST BOSTON IN 1989 ALONG WITH MICHAEL GOLDBERG WHO LEFT THE FIRM IN 1991 AND ROBERT COTTER WHO IN 1992 SHIFTED TO HANDLE CLIENTS WHO ENGAGE IN LEVERAGED TRANSACTIONS FIRST BOSTON IS THE US UNIT OF CS FIRST BOSTON GROUP INC A UNIT OF SWISSBASED CS HOLDING FIRST BOSTON PRESIDENT ARCHIBALD COX JR SAID A SUCCESSOR TO MR KOENEKE IS EXPECTED TO BE NAMED SOON WE'RE SORRY TO SEE HIM LEAVE MR COX SAID BUT WE'VE GOT A DEEP BENCH A LOT OF SENIOR BANKERS AND IT'S A LOGICAL PLACE TO LOOK TO RECRUIT NEW PEOPLE 9304280133 930428 BUSINESS BRIEFS MINORCO INC'S INDEPENDENCE MINING CO UNIT ACQUIRED PIKES PEAK MINING CO A UNIT OF NERCO MINERALS CO FOR 21 MILLION MINORCO INC IS THE US UNIT OF LUXEMBOURGBASED MINORCO EASTMAN KODAK CO SAID ITS EASTMAN CHEMICAL CO UNIT WILL BUILD A PLANT IN MEXICO TO MAKE POLYETHYLENE TEREPHTHALATE BOTTLE POLYMER PRAXAIR INC WILL CONSTRUCT AN APPROXIMATELY 40 MILLION LIQUIDHYDROGEN PRODUCTION PLANT AT THE SITE OF AN OLIN CORP CHLORINE AND CAUSTIC FACILITY IN MCINTOSH ALA URS CORP AN ENGINEERING AND ENVIRONMENTAL SERVICES CONCERN SAID THE US ARMY CORPS OF ENGINEERS SELECTED ITS URS CONSULTANTS SUBSIDIARY FOR A CONTRACT WITH A POTENTIAL VALUE OF 20 MILLION UNISYS CORP SAID THE MASSACHUSETTS DEPARTMENT OF EMPLOYMENT AND TRAINING PURCHASED A 128 MILLION INFORMATION SYSTEM TO PROCESS UNEMPLOYMENT INSURANCE CLAIMS AND RELATED INFORMATION FIRST BANK SYSTEM INC SIGNED A LETTER OF INTENT TO ACQUIRE AMERICAN BANCSHARES OF MANKATO INC AND EAGLE INSURANCE AGENCY INC TERMS WEREN'T DISCLOSED OWENS & MINOR INC A SUPPLIER OF MEDICAL AND SURGICAL EQUIPMENT PLANS TO OPEN A DISTRIBUTION CENTER IN THE BOSTON AREA 9304280132 930428 ECONOMY STATES ARE CURBING SPENDING TO MATCH REVENUE EXPECTATIONS SURVEY INDICATES BY LAURIE MCGINLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A NEW FISCAL SURVEY SUGGESTS THAT STATES HAVE BITTEN THE BUDGET BULLET BY SLOWING SPENDING INCREASES TO REFLECT EXPECTED MODEST GROWTH IN TAX REVENUES STATE BUDGETS ARE EXPECTED TO INCREASE ONLY ABOUT 3 ANNUALLY FOR THE 1993 AND 1994 FISCAL YEARS ACCORDING TO A NEW REPORT BY THE NATIONAL GOVERNORS' ASSOCIATION AND THE NATIONAL ASSOCIATION OF STATE BUDGET OFFICERS THAT'S LESS THAN THE CURRENT INFLATION RATE AND ABOUT ONETHIRD THE 8 AVERAGE ANNUAL INCREASE DURING THE 1980S RAYMOND SCHEPPACH EXECUTIVE DIRECTOR OF THE GOVERNORS' ASSOCIATION POINTED OUT THAT IN RECENT YEARS STATES HAVE FACED MAJOR FINANCIAL SHORTFALLS REQUIRING SHARP BUDGET CUTS AND SUBSTANTIAL TAX INCREASES BUT THIS YEAR HE SAID THE FISCAL OUTLOOK IS MORE STABLE NOT BECAUSE REVENUE GROWTH IS PICKING UP BUT BECAUSE STATES HAVE ADJUSTED TO THE CURRENT ENVIRONMENT BY LOWERING SHARPLY THEIR REVENUE EXPECTATIONS AND CURBING SPENDING PLANS THERE'S A REALIZATION IN THE STATES THAT THE DECADE OF THE '90S WILL BE MUCH DIFFERENT THAN THE '80S IN TERMS OF ECONOMIC AND REVENUE GROWTH HE SAID STATES HAVE SHIFTED FROM TEMPORARY BUDGET CUTS TO LONGTERM STRUCTURAL REFORMS IN AN EFFORT TO REDUCE OVERHEAD COSTS AND INCREASE EFFICIENCY THE REPORT'S FINDINGS INCLUDE NEW TAXES AND FEES IN PROPOSED FISCAL 1994 BUDGETS TOTAL 37 BILLION COMPARED WITH A COMBINED 25 BILLION IN FISCAL 1991 AND 1992 AND 3 BILLION IN 1993 STATE GENERALFUND REVENUES GREW 37 IN FISCAL 1993 AND ARE PROJECTED TO GROW 27 IN FISCAL 1994 BOTH RATES ARE SUBSTANTIALLY LESS THAN THE GROWTH BETWEEN 1979 AND 1992 THE ECONOMIC RECOVERY IS UNEVEN WITH STATES SUCH AS CALIFORNIA FEELING THE BRUNT OF DEFENSE AND HIGHTECHNOLOGY CUTBACKS WHILE STATES IN THE PLAINS ROCKY MOUNTAINS AND SOUTHEAST DOING MUCH BETTER THE REPORT ALSO SAID MANY STATES ARE REDESIGNING AID TO FAMILIES WITH DEPENDENT CHILDREN THE MAIN FEDERALSTATE WELFARE PROGRAM FOR POOR FAMILIES WITH CHILDREN TO PROD RECIPIENTS TO GET JOBS ATTEND SCHOOL OR TRAINING PROGRAMS AND OBTAIN PREVENTIVE HEALTH CARE THE STUDY ALSO FOUND THAT SPENDING ON MEDICAID A FEDERALSTATE HEALTH INSURANCE PROGRAM FOR THE POOR IS GROWING AT A RAPID RATE AND CONTINUES TO BE A BUDGET BREAKER IN MOST STATES FOR FISCAL 1993 MEDICAID EXPENDITURES ARE PROJECTED TO GROW 19 AFTER INCREASING 28 IN 1991 AND 30 IN 1992 THE SLOWER GROWTH REFLECTS STATE CUTS AND THE IMPOSITION OF OTHER COST CONTROLS 9304280131 930428 ITT POSTS PROFIT FOR FIRST QUARTER STOCK CLIMBS 3 BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ITT CORP REPORTED STRONG FIRSTQUARTER RESULTS WHICH PUSHED ITS STOCK UP 3 THE COMPANY ALSO MAY BE IN TALKS TO SELL MUCH OF ITS DOMESTIC UNSECURED SMALLLOAN PORTFOLIO POSSIBLY FOR MORE THAN 1 BILLION THE DIVERSIFIED INDUSTRIAL PRODUCTS HOTEL AND FINANCIALSERVICES COMPANY POSTED ITS FIRST QUARTERLY PROFIT SINCE LAST YEAR'S SECOND QUARTER REFLECTING A MAJOR RESTRUCTURING IN THE LAST HALF OF 1992 NET INCOME WAS 175 MILLION OR 137 A SHARE COMPARED WITH A LOSS OF 487 MILLION OR 438 A SHARE IN THE 1992 FIRST QUARTER REVENUE INCHED UP 06 TO 511 BILLION EXCLUDING CHARGES FOR CHANGES IN ACCOUNTING FOR INCOME TAX REPORTING AND POSTRETIREMENT BENEFITS THE COMPANY'S 1992 FIRSTQUARTER NET INCOME WOULD HAVE BEEN 138 MILLION OR 108 A SHARE ITT SHARES GAINED 2375 TO CLOSE AT 81 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE EARNINGS WERE HIGHER THAN MOST PEOPLE EXPECTED SAID PHUA YOUNG AN ANALYST WITH SHEARSON LEHMAN BROTHERS THEY'VE REELED IN SOME OF THEIR EXPENSES AND IMPROVED THEIR PROFITS IT'S A SIGN THAT WE'RE STARTING TO SEE A LITTLE PAYOFF FROM LAST YEAR'S RESTRUCTURINGS IN 1992 ITT TOOK 138 BILLION IN AFTERTAX RESTRUCTURING CHARGES AT ITS BUSINESS UNITS AND REPORTED A NET LOSS OF 885 MILLION OR 793 A SHARE ON REVENUE OF 2165 BILLION PART OF THE RESTRUCTURING INVOLVED ITT'S 24 BILLION DOMESTIC UNSECURED SMALLLOAN PORTFOLIO THE COMPANY WROTE DOWN MUCH OF THE PORTFOLIO WHICH INCLUDED A LOT OF DELINQUENT AND POORPERFORMING LOANS EARLIER THIS YEAR AT THE TIME THE COMPANY SAID IT PLANNED TO LEAVE THAT BUSINESS A NUMBER OF ITT EMPLOYEES CONNECTED WITH THE CONSUMER LOAN UNIT HAVE BEEN SPECULATING THAT THE COMPANY HAS BEEN IN TALKS WITH HOUSEHOLD INTERNATIONAL INC FOR ITS SALE ASKED WHETHER SUCH TALKS ARE UNDER WAY AN ITT SPOKESMAN SAID WE HAVE NOTHING TO SAY AT THIS TIME CONCERNING A POSSIBLE TRANSACTION INVOLVING ITT FINANCIAL CORP HOWEVER OTHERS FAMILIAR WITH THE TALKS INDICATED THAT THE NEGOTIATIONS FOR THE SALE OF THE UNSECURED CONSUMER LOAN PORTFOLIO INVOLVED A CONSORTIUM OF COMPANIES INCLUDING HOUSEHOLD INTERNATIONAL PROSPECT HEIGHTS ILL THESE PEOPLE SAID THE PORTFOLIO COULD BRING MORE THAN 1 BILLION OUR POLICY IS NOT TO COMMENT ON RUMORS SAID A SPOKESMAN FOR HOUSEHOLD INTERNATIONAL IN THE MOST RECENT QUARTER ITT EXCEEDED ANALYSTS' EARNINGS EXPECTATIONS DESPITE ANOTHER ROUND OF CATASTROPHE LOSSES AT ITS ITT HARTFORD INSURANCE DIVISION FOLLOWING LOSSES FROM HURRICANES ANDREW AND INIKI ITT SAID THE INSURANCE UNIT RECORDED LOSSES OF ABOUT 41 MILLION OR 34 CENTS A SHARE FROM ITS EXPOSURE TO THE WORLD TRADE CENTER BOMBING AND A WINTER STORM 9304280130 930428 WHO'S NEWS INTERTEL COMMUNICATIONS INC INTERTEL COMMUNICATIONS INC DENVER JAY E RICKS 60 YEARS OLD WAS NAMED A DIRECTOR OF THIS TELECOMMUNICATIONS CONCERN RAISING BOARD MEMBERSHIP TO SIX MR RICKS A WASHINGTON DC COMMUNICATIONS ATTORNEY IS CHAIRMAN OF DOUGLAS COMMUNICATIONS CORP II A CLOSELY HELD CABLE TELEVISION CONCERN 9304280129 930428 TECHNOLOGY & HEALTH MERCK OFFERS A GLIMPSE AT NEW DRUGS AND STRATEGIES TO REASSURE ITS HOLDERS BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL NORTH BRANCH NJ SEEKING TO REASSURE INVESTORS THAT IT STILL HAS THE GOLDEN TOUCH MERCK & CO'S CHAIRMAN P ROY VAGELOS OFFERED A GLIMPSE OF SOME NEW PRODUCTS COMING THROUGH THE COMPANY'S RESEARCH PIPELINE AND DESCRIBED STRATEGIES TO BOOST SALES OF EXISTING PRODUCTS AT YESTERDAY'S SHAREHOLDERS MEETING DR VAGELOS AND RICHARD J MARKHAM MERCK'S RECENTLY APPOINTED PRESIDENT SOUGHT TO PORTRAY MERCK AS A COMPANY ADJUSTING TO THE POLITICAL AND MARKET CHANGES ROILING THE INDUSTRY EVEN THOUGH ITS SALES AND EARNINGS GROWTH HAVE BEEN DECLINING IN THE PAST YEAR MERCK THE WORLD'S LARGEST PHARMACEUTICAL COMPANY HAS BEEN FENDING OFF ATTACKS ON ITS IMAGE AND BOTTOM LINE FROM COMPETITORS AND CUSTOMERS THE COMPANY THIS YEAR PLANS TO SPEND 12 BILLION ON RESEARCH AND DEVELOPMENT A 10 INCREASE FROM LAST YEAR DR VAGELOS SAID SOME ANALYSTS HAVE EXPRESSED DISMAY AT THE DEARTH OF DRUGS WITH BLOCKBUSTER PROSPECTS IN MERCK'S RESEARCH AND DEVELOPMENT PIPELINE SEEKING TO ALLAY CONCERNS DR VAGELOS EMPHASIZED THE SIZE OF THE MARKETS FOR DRUGS UNDER DEVELOPMENT SOME OF WHICH WERE PUBLICLY DISCUSSED FOR THE FIRST TIME MERCK'S OSTEOPOROSIS DRUG FOSAMAX IS TARGETED AT THE 200 MILLION PEOPLE WORLDWIDE WHO SUFFER FROM THE BONETHINNING DISEASE STUDIES HAVE DEMONSTRATED THE DRUG IS SAFE DOESN'T PRODUCE SIDE EFFECTS AND INCREASES BONE MINERAL DENSITY BY 3 IN THE HIP AND NEARLY 6 IN THE SPINE DR VAGELOS SAID A TREATMENT FOR MIGRAINE HEADACHES WHICH AFFECT ABOUT 25 OF WOMEN AND 8 OF MEN IS SHOWING PROMISE DR VAGELOS SAID PROVIDING RELIEF IN 70 OF PATIENTS WITH SEVERE HEADACHE TWO HOURS AFTER TAKING THE DRUG MK462 A STUDY IS UNDER WAY COMPARING MERCK'S DRUG WITH SUMITRIPTAN RECENTLY INTRODUCED BY GLAXO HOLDINGS PLC DR VAGELOS SAID MERCK ALSO IS TESTING A TREATMENT FOR ASTHMA ANOTHER COMMON CONDITION WITH BIG MARKET POTENTIAL THE DRUG MK476 BLOCKS LEUKOTRINES WHICH ARE INVOLVED IN ASTHMA SYMPTOMS INCLUDING INFLAMMATION AND MUSCLE CONTRACTIONS THE DRUG APPEARS TO BE MORE ACTIVE THAN MERCK'S PREVIOUS ASTHMA CANDIDATE DR VAGELOS SAID THAT DRUG WAS DROPPED FROM DEVELOPMENT A COUPLE OF YEARS AGO DR VAGELOS ALSO REPORTED ON TWO HEART DRUGS LOSARTAN A TREATMENT FOR HIGH BLOOD PRESSURE AND HEART FAILURE BEING DEVELOPED BY MERCK AND DUPONT MERCK PHARMACEUTICAL CO ITS JOINT VENTURE WITH DUPONT CO IS SIMILAR TO THE COMPANY'S ACE INHIBITOR VASOTEC EXCEPT IT DOESN'T PRODUCE THE DRY COUGH AS FREQUENTLY DR VAGELOS SAID THE COUGH IS PARTICULARLY PROBLEMATIC FOR PATIENTS WITH HEART FAILURE ANOTHER DRUG MK383 IS IN EARLY TESTING TO TREAT UNSTABLE ANGINA AN AIDS DRUG L697661 IS IN EARLY STUDIES IN COMBINATION WITH AZT MADE BY BURROUGHS WELLCOME CO A UNIT OF WELLCOME PLC THE COMPANY ALSO DISCLOSED EARLY RESULTS OF A STUDY THAT INDICATES THE COMPANY'S PROSTATESHRINKING DRUG PROSCAR ALSO HAS AN EFFECT ON PROSTATE CANCER THE DRUG ADMINISTERED TO 120 PATIENTS WHOSE PROSTATES WERE REMOVED AS A TREATMENT FOR CANCER APPEARED TO REDUCE LEVELS OF AN ANTIGEN THAT INDICATES THE PRESENCE OF CANCER FURTHER STUDIES ARE UNDER WAY DR VAGELOS SAID ON THE MARKETING FRONT MR MARKHAM SAID THE COMPANY BEEFED UP THE SALES FORCE PROMOTING MEVACOR THE COMPANY'S CHOLESTEROLLOWERING DRUG WHOSE SALES HAVE FLATTENED DUE TO COMPETITION AND SLOWING GROWTH OF THE OVERALL MARKET THE COMPANY ALSO IS COMPETING AGGRESSIVELY ON PRICE BY DISCOUNTING TO MANAGEDCARE AND GOVERNMENT GROUPS HE SAID MERCK HAD LONG BEEN CONSIDERED A HOLDOUT IN THE DISCOUNTING WARS BEING FOUGHT AMONG PHARMACEUTICAL COMPANIES FOR THE BUSINESS OF BIG INSTITUTIONAL BUYERS MR MARKHAM SAID SALES TO MANAGEDCARE GROUPS WHICH INCREASED 21 IN 1992 ARE GROWING AT A FASTER RATE THAN THE RETAIL MARKET IN GENERAL WHICH GREW 16 9304280128 930428 FOUR EUROPEAN CARRIERS PROPOSE MERGER INTO CONTINENT'S SECONDLARGEST AIRLINE BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL STOCKHOLM THREE MONTHS AFTER FLOATING A MURKY IDEA TO EXPLORE CLOSER COOPERATION FOUR EUROPEAN AIRLINES OPTED FOR AN OUTRIGHT MERGER IN A JOINT STATEMENT YESTERDAY KLM ROYAL DUTCH AIRLINES SWISSAIR SCANDINAVIAN AIRLINES SYSTEM AND AUSTRIAN AIRLINES SAID THEY HOPE TO CREATE A NEW COMPANY WITH A SINGLE BALANCE SHEET A SINGLE HEADQUARTERS AND A SINGLE PRODUCT WHILE MANY HURDLES ARE IN THE WAY THE PROPOSED FOURWAY ALLIANCE WOULD BOLDLY ALTER THE AVIATION LANDSCAPE CREATING EUROPE'S SECONDLARGEST AIRLINE IN PASSENGER TRAFFIC AFTER BRITISH AIRWAYS PLC IT ALSO WOULD FORM THE WORLD'S SEVENTHLARGEST CARRIER IF THE PLAN GOES AHEAD IT WOULD BE THE MOST STRIKING RESPONSE TO THE PRESSURES THAT LONG HAVE BEEN EXPECTED TO FORCE A SHAKEOUT IN THE CROWDED EUROPEAN AIRLINE INDUSTRY THE SEARCH FOR ALLIES HAS BEEN ON FOR SOME TIME AS AIRLINES FACE UP TO LIBERALIZATION OF THE EUROPEAN MARKET INTENSIFYING GLOBAL COMPETITION AND THREE YEARS OF INDUSTRYWIDE LOSSES HOWEVER THE LINKUPS HAVE INVOLVED MINORITY SHAREHOLDINGS AND FAIRLY TIMID JOINT MARKETING STRATEGIES AN ALLIANCE ALSO COULD LEAD TO SIGNIFICANT SAVINGS IN AN INDUSTRY THAT POSTED COMBINED LOSSES WORLDWIDE OF 48 BILLION LAST YEAR BY TEAMING UP ON PURCHASING MARKETING ROUTE PLANNING AND OTHER ACTIVITIES ONE AVIATION ANALYST CALCULATES THE FOURSOME COULD BOOST COMBINED PRETAX PROFIT FROM 159 TO A STUNNING 619 OVER THE NEXT TWO WEEKS THE FOUR AIRLINES' BOARDS WILL MEET SEPARATELY TO DECIDE WHETHER TO PROCEED IF THEY GIVE THE GOAHEAD OFFICIALS SAY THE GOAL WILL BE TO DRAFT A MEMORANDUM OF UNDERSTANDING FOR SIGNING THIS SUMMER BUT EVEN GETTING THAT FAR WON'T BE EASY NEGOTIATORS WILL HAVE TO BALANCE THE SOMETIMES COMPETING INTERESTS OF NOT ONLY THE COMPANIES THEIR MANAGERS AND EMPLOYEES BUT ALSO OF GOVERNMENTS INVESTORS AND SCORES OF REGULATORS ALMOST ANY COULD SCUTTLE A DEAL NO FEWER THAN SIX NATIONAL GOVERNMENTS PLUS A NUMBER OF LOCAL AND REGIONAL GOVERNMENTS OWN STAKES IN THE AIRLINES SO DO SHAREHOLDERS WHO CAN BUY STOCK IN AMSTERDAM ZURICH VIENNA OSLO COPENHAGEN AND STOCKHOLM OWNERSHIP OF SAS IS SPLIT AMONG DENMARK SWEDEN AND NORWAY ANOTHER MAJOR HURDLE WILL BE THE UNIONS WHO FEAR JOB LOSSES AS THE MERGED CARRIERS SEEK TO ELIMINATE ROUTE AND OTHER DUPLICATIONTHOUGH THE AIRLINES ARGUE OTHERWISE SAS UNION OFFICIALS ALREADY ARE DENOUNCING THE PROPOSED LINKUP SOME WORKERS ARE AFRAID A MERGED AIRLINE WOULD HAND OVER ITS INTERCONTINENTAL TRAFFIC TO KLM AND AMSTERDAM'S SCHIPHOL AIRPORT COSTING JOBS ELSEWHERE IF THE CURRENT RELIGION ABOUT HUBS IS CORRECT YOU HAVE TO CREATE AT LEAST ONE BIG HUB SAYS A DANISH SAS UNION OFFICIAL WHO SPOKE ON CONDITION OF ANONYMITY ADDING I DON'T THINK THE DUTCH GOVERNMENT IS GOING TO DIVERT TRAFFIC TO COPENHAGEN THE FOUR AIRLINES ALSO MUST SORT OUT A TANGLE OF GLOBAL PARTNERSHIPS IN THE US FOR EXAMPLE SWISSAIR AND DELTA AIR LINES OWN 5 STAKES IN EACH OTHER KLM OWNS 20 OF THE PARENT OF NORTHWEST AIRLINES AND SAS HAS CLOSE OPERATING LINKS WITH CONTINENTAL AIRLINES ALTHOUGH IT HAS WRITTEN OFF ITS SHAREHOLDING SINCE CONTINENTAL WENT INTO BANKRUPTCY PROCEEDINGS OTHER LINKS FURTHER COMPLICATE THE PICTURE SWISSAIR HAS TIES TO SINGAPORE AIRLINES KLM HAS SHARES IN AIR UK AIR LITTORAL OF FRANCE DUTCH CHARTER COMPANY TRANSAVIA AIRLINES AND ALM ANTILLEAN AIRLINES AND SAS HAS HOLDINGS IN BRITISH MIDLAND AIRWAYS LTD LANCHILE AND SPANISH CHARTER CARRIER SPANAIR ONLY AUSTRIAN AIRLINES HAS NO FOREIGN INVESTMENTS NOT THE LEAST OF THE GLOBAL WORRIES WILL BE THE WEB OF AVIATION TREATIES THAT GRANT CARRIERS THE RIGHT TO FLY FROM ONE COUNTRY TO ANOTHER SUCH ACCORDS ARE SIGNED ON A NATIONTONATION BASIS AND DON'T PROVIDE FOR MULTINATIONAL CARRIERS FINALLY THERE IS THE QUESTION OF DIVVYING UP OWNERSHIP OF THE MERGED AIRLINE THAT ISSUE KILLED A PROPOSED MERGER OF KLM WITH BRITISH AIRWAYS LAST YEAR AFTER MONTHS OF INTENSE TALKS BUT IT HAS SEEMED TO PRESENT FEW PROBLEMS FOR KLM AND ITS PROSPECTIVE PARTNERS THE AIRLINES HAVE PROVISIONALLY AGREED TO FORM A JOINT HOLDING COMPANY AND SPLIT OWNERSHIP WITH 30 STAKES EACH FOR KLM SAS AND SWISSAIR AND 10 FOR THE MUCH SMALLER AUSTRIAN AIRLINES BUT OFFICIALS CONCEDE THAT THIS TOO COULD TURN INTO A STUMBLING BLOCK STILL THERE ARE SIGNS THAT THE DEAL COULD COME OFF SAS OFFICIALS ARGUE THAT THE MOVE IS LOGICAL AND THAT THE COMPANIES HAVE GOTTEN ALONG FAMOUSLY IN GROUPS SET UP IN FEBRUARY TO EXPLORE THE IDEA AND THE SAS EXECUTIVES POINT TO THEIR OWN THREENATION AIRLINE AS EVIDENCE THAT A MULTINATIONAL CARRIER CAN WORK FOR SEVERAL YEARS SAS SWISSAIR AND AUSTRIAN HAVE BEEN LINKED IN WHAT THEY CALL THE EUROPEAN QUALITY ALLIANCE THEY HAVE WORKED TOGETHER ON MARKETING AND ON SOME OPERATIONS SUCH AS SHARED CHECKIN COUNTERS THEY HAVE EVEN BOUGHT PLANES TOGETHER BUT BY MID1992 ACCORDING TO KJELL FREDHEIM CHIEF OPERATING OFFICER OF SAS THE THREE CARRIERS REALIZED THAT THEY NEEDED SOMETHING MORE THE EUROPEAN COMMUNITY'S SINGLEMARKET LIBERALIZATIONS WERE ABOUT TO TAKE EFFECT THE RECESSION WAS HURTING EVERYBODY AND US COMPETITORS WERE STEPPING UP THEIR INTERNATIONAL EXPANSION SUCH PRESSURES HAVE PROMPTED EUROPEAN AIRLINES TO TALK OF CONSOLIDATION BEFORE ALBEIT UNSUCCESSFULLY AT LEAST 15 MAJOR AIRLINES FLY IN WESTERN EUROPE COMPARED WITH 10 OR SO IN THE BIGGER NORTH AMERICAN MARKET BUT NATIONAL PRIDE HAS ALWAYS GOTTEN IN THE WAY 9304280126 930428 WHO'S NEWS MEAD CORP MEAD CORP DAYTON OHIO WILLIAM R GRABER 50 YEARS OLD TREASURER OF THIS FOREST PRODUCTS AND ELECTRONIC PUBLISHING CONCERN WAS NAMED TO THE ADDITIONAL POST OF VICE PRESIDENT 9304280125 930428 TECHNOLOGY & HEALTH US SURGICAL STOCK RISES 11 ON PROFIT FORECAST FOR 1993 BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK US SURGICAL CORP PREDICTED THAT 1993 EARNINGS WILL BE AT THE HIGH END OF ANALYSTS' RECENTLY REVISED ESTIMATES ADDING THAT A SLUMP IN THE COMPANY'S STOCK PRICE MAY INDUCE IT TO REPURCHASE SHARES THE COMMENTS AT US SURGICAL'S ANNUAL MEETING BY CHAIRMAN AND CHIEF EXECUTIVE OFFICER LEON HIRSCH CAUSED THE COMPANY'S STOCK PRICE TO JUMP 11 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING US SURGICAL ROSE 325 TO 32 A SHARE US SURGICAL'S STOCK HAS SLUMPED MORE THAN 50 THIS YEAR HOWEVER WITH MUCH OF THE DROP COMING IN EARLY APRIL AT THAT TIME US SURGICAL SAID IT EXPECTED TO REPORT WEAK EARNINGS FOR THE SECOND AND THIRD QUARTERS IT CITED A SLOWDOWN IN HOSPITALS' ORDERS OF ITS EQUIPMENT AND A SWITCH TO NEW DISTRIBUTION CHANNELS AT THE MEETING MR HIRSCH FACED A SERIES OF POINTED QUESTIONS ABOUT THE COMPANY'S RECENT PERFORMANCE MR HIRSCH BLAMED MUCH OF THE COMPANY'S SLOWDOWN ON ANXIETY OVER HOW PRESIDENT CLINTON'S HEALTHCARE REFORM PLANS WILL AFFECT MEDICAL SPENDING HOSPITALS HAVE CUT BACK PURCHASES HE OBSERVED THOUGH HE SAID I THINK THE INDUSTRY HAS OVERREACTED WHILE MR HIRSCH DECLINED TO MAKE A SPECIFIC EARNINGS PROJECTION HE SAID ANALYSTS EXPECT US SURGICAL TO EARN 115 TO 190 A SHARE THIS YEAR WE THINK THE HIGH SIDE IS MORE REALISTIC THAN THE LOW SIDE HE SAID MR HIRSCH ALSO SAID WE ARE CONSIDERING BUYING BACK STOCK SUCH A REPURCHASE PROGRAM PRESUMABLY FUNDED WITH BORROWED MONEY WOULDN'T HURT PERSHARE EARNINGS AND IN FACT WOULD BE VERY MUCH ANTIDILUTIVE HE SAID STILL MR HIRSCH CAUTIONED A RISE IN INTEREST RATES COULD MAKE A STOCK REPURCHASE PROGRAM LESS ATTRACTIVE US SURGICAL HAS ABOUT 557 MILLION SHARES OUTSTANDING MR HIRSCH DIDN'T SAY HOW MANY MIGHT BE INVOLVED IN A REPURCHASE PROGRAM IN RESPONSE TO A QUESTION MR HIRSCH SAID TOP EXECUTIVES' PAY WILL DROP THIS YEAR BECAUSE OF THE DOWNTURN IN RESULTS HE SAID HE AND OTHER TOP EXECUTIVES WON'T QUALIFY FOR BONUSES TIED TO SALES GROWTH OR PERSHARE EARNINGS LAST YEAR MR HIRSCH COLLECTED 17 MILLION IN SALARY AND BONUS ANOTHER 542000 IN LONGTERM COMPENSATION AND EXERCISED STOCK OPTIONS WITH A VALUE OF 585 MILLION 9304280124 930428 WHO'S NEWS BURLINGTON INDUSTRIES EQUITY INC BURLINGTON INDUSTRIES EQUITY INC GREENSBORO NC GEORGE W HENDERSON III 44 YEARS OLD WAS APPOINTED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS TEXTILE CONCERN HE MOST RECENTLY SERVED AS GROUP VICE PRESIDENT WITH RESPONSIBILITY FOR DENIM AND CARPET MANUFACTURING AS PRESIDENT HE SUCCEEDS FRANK S GREENBERG 63 WHO RETAINS THE POSITIONS OF CHIEF EXECUTIVE OFFICER AND CHAIRMAN CHIEF OPERATING OFFICER IS A NEWLY CREATED POST ALSO THREE GROUP VICE PRESIDENTS WERE PROMOTED TO THE NEWLY CREATED POSITION OF EXECUTIVE VICE PRESIDENT BERNARD A LEVENTHAL 60 ABRAHAM B STENBERG 57 AND GARY WELCHMAN 49 JOHN D ENGLAR 46 WAS APPOINTED TO ANOTHER NEWLY CREATED POST SENIOR VICE PRESIDENT FINANCE AND LAW HE RETAINS HIS CURRENT POSITION AS GENERAL COUNSEL 9304280123 930428 THREE OIL FIRMS REPORT STRONG 1STPERIOD GAINS MOBIL CHEVRON AND UNION TEXAS POST EARNINGS AFTER YEARAGO LOSSES BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL THREE PETROLEUM COMPANIES INCLUDING TWO OF THE BIGGEST MOBIL CORP AND CHEVRON CORP POSTED STRONG EARNINGS FOR THE FIRST QUARTER THE INDUSTRYWIDE TREND REFLECTS IMPROVED PROFIT MARGINS IN DOMESTIC OIL AND NATURAL GAS MARKETS ALTHOUGH A THIRD COMPANY'S OPERATING EARNINGS BEFORE YEAREARLIER CHARGES FELL BECAUSE OF LOWER PRICES ON PRODUCTS SOLD OVERSEAS THE GOOD NEWS IS THAT THEY'RE EARNING MONEY IN A US REFINING MARKET THAT'S MORE COMPETITIVE THAN EVER SAID GENE NOWAK AN OIL ANALYST AT DEAN WITTER REYNOLDS INC FIRSTQUARTER EARNINGS FOR MOBIL THE SECONDLARGEST OIL COMPANY AFTER EXXON CORP WERE 19 HIGHER THAN GENERALLY FORECAST BY ANALYSTS BUT TROUBLE SPOTS AMONG SOME COMPANIES' RESULTS INCLUDED DEPRESSED EARNINGS FROM CHEMICAL OPERATIONS AND PRESSURE ON PETROLEUM MARKETING AND REFINING PROFIT MARGINS IN EUROPE DUE TO OVERALL WEAKNESS IN SOME ECOMOMIES THERE YESTERDAY'S RESULTS ALSO REFLECT PETROLEUM INDUSTRY STRATEGIES TO OFFSET THE IMPACT OF OPERATING IN WEAK ECONOMIES WITH REDUCTIONS IN ADMINISTRATIVE COSTS AND LOWER EXPLORATION EXPENDITURES ANALYSTS SAID EXPLORATION COSTS MAY BE THE MOST DIFFICULT EXPENSE TO KEEP LOW AS COMPANIES SEEK TO EXPAND THEIR ENERGY RESERVES THUS PUTTING PRESSURE ON FUTURE PROFIT MARGINS MOBIL POSTED FIRSTQUARTER NET OF 490 MILLION OR 119 A COMMON SHARE COMPARED WITH A RESTATED LOSS OF 319 MILLION OR 84 CENTS A COMMON SHARE THE YEAREARLIER QUARTER'S RESULTS REFLECT A CHARGE OF 446 MILLION OR 112 A SHARE FOR THE ADOPTION OF ACCOUNTING CHANGES RELATED TO RETIREE BENEFITS AND INCOME TAXES THEY ALSO INCLUDE A CHARGE OF 86 MILLION FOR RESTRUCTURING LARGELY OF CERTAIN US AND CANADIAN EXPLORATION AND PRODUCTION OPERATIONS EXCLUDING THE YEAREARLIER ACCOUNTING CHANGES AND THE RESTRUCTURING CHARGE OPERATING EARNINGS MORE THAN DOUBLED TO 490 MILLION OR 119 A SHARE FROM 213 MILLION OR 50 CENTS A SHARE MOBIL BENEFITED FROM NATURALGAS PRICES THAT ROSE 35 FROM THE YEAREARLIER FIRST QUARTER TO AVERAGE 2 A THOUSAND CUBIC FEET IN THE MOST RECENT QUARTER CRUDE OIL PRICES IN THE MOST RECENT QUARTER ROSE 7 FROM A YEAR AGO TO AN AVERAGE OF 1470 A BARREL FIRSTQUARTER REVENUE FELL 1 TO 1501 BILLION FROM 1515 BILLION MOBIL BASED IN FAIRFAX VA SAID EARNINGS IN ITS CHEMICAL BUSINESS FELL BECAUSE OF DEPRESSED PRICES BROUGHT ABOUT BY SURPLUS CAPACITY IN THAT INDUSTRY CHEVRON THE THIRDLARGEST OIL COMPANY POSTED FIRSTQUARTER NET OF 501 MILLION OR 154 A SHARE COMPARED WITH A RESTATED LOSS OF 301 MILLION OR 88 CENTS A SHARE A YEAR EARLIER THE 1992 QUARTER WAS RESTATED TO INCLUDE A CHARGE OF 641 MILLION OR 187 A SHARE FOR THE COST OF NEW METHODS OF ACCOUNTING FOR RETIREE BENEFITS AND INCOME TAXES STRIPPING AWAY THE ACCOUNTING CHANGES CHEVRON'S OPERATING EARNINGS ROSE 47 TO 501 MILLION FROM 340 MILLION OR 99 CENTS A SHARE CHEVRON BASED IN SAN FRANCISCO SAID FIRSTQUARTER PROFIT MARGINS WERE IMPROVED IN PART THROUGH AN 11 REDUCTION IN OPERATING GENERAL AND ADMINISTRATIVE EXPENSES THUS THE COMPANY EXPLORATION AND PRODUCTION EARNINGS FROM US OPERATIONS MORE THAN TRIPLED TO 195 MILLION BUT EARNINGS IN THE CHEMICAL BUSINESS FELL 81 TO 18 MILLION FROM 97 MILLION THE YEAREARLIER CHEMICAL EARNINGS INCLUDED 53 MILLION FROM SALE OF ASSETS AND FROM CERTAIN PRODUCT LICENSING AGREEMENTS REVENUE IN THE FIRST QUARTER ROSE 1 TO 984 BILLION FROM 971 BILLION UNION TEXAS PETROLEUM HOLDINGS INC REPORTED FIRSTQUARTER NET INCOME OF 26 MILLION OR 30 CENTS A SHARE COMPARED WITH A YEAREARLIER RESTATED NET LOSS OF 47 MILLION OR 69 CENTS A SHARE UNION TEXAS BASED IN HOUSTON SAID THE YEAREARLIER LOSS INCLUDES CHARGES OF 76 MILLION OR 89 CENTS A SHARE FOR CHANGES IN ACCOUNTING METHODS FOR RETIREE BENEFITS AND INCOME TAXES AND 20 MILLION OR 23 CENTS A SHARE FOR THE EARLY REDEMPTION OF DEBT EXCLUDING THE CHARGES UNION TEXAS'S OPERATING EARNINGS FELL 47 TO 26 MILLION OR 30 CENTS A SHARE FROM 49 MILLION OR 43 CENTS A SHARE THE COMPANY WHICH SELLS ITS OIL AND NATURALGAS OVERSEAS BLAMED LOWER PRICES IN THE ECONOMICALLY DEPRESSED UNITED KINGDOM AND IN INCREASINGLY COMPETITIVE INDONESIA REVENUE FELL 8 TO 180 MILLION FROM 196 MILLION 9304280122 930428 WHO'S NEWS ALLTEL CORP ALLTEL CORP LITTLE ROCK ARK MAX E BOBBITT 48 YEARS OLD FORMERLY EXECUTIVE VICE PRESIDENT OF THIS TELECOMMUNICATIONS AND INFORMATION SERVICES CONCERN WAS NAMED PRESIDENT HE SUCCEEDS JOE T FORD 55 WHO WILL REMAIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9304280121 930428 REVIEW & OUTLOOK EDITORIAL ASIDES QUOTA MADNESS THE FLORIDA LEGISLATURE IS PROVIDING THE REST OF THE COUNTRY WITH AN AMAZING LOOK AT WHERE THE LOGIC OF HIRING QUOTAS ON THE BASIS OF GENDER RACE AND DIVERSITY IS LEADING THE COUNTRY THIS MONTH IT PASSED A BILL THAT WOULD ESTABLISH FIRM HIRING QUOTAS FOR THE STATE'S BOARDS COMMISSIONS AND COUNCILS SO LONG AS THEY WERE QUALIFIED HALF OF ALL APPOINTEES WOULD HAVE TO BE WOMEN 136 WOULD HAVE TO BE BLACK AND 121 HISPANIC THIS RESULT PRESUMABLY WOULD MIRROR THE PRESENCE OF THOSE GROUPS IN FLORIDA'S POPULATION DEMOCRATIC GOVERNOR LAWTON CHILES MUST NOW DECIDE WHETHER TO SIGN THIS THING IT WOULD OF COURSE OVERTURN ANY NOTION OF A COLORBLIND SOCIETY REPLACING IT WITH WHAT WOULD AMOUNT TO THE BALKANIZATION OF FLORIDA EVEN BILL CLINTON WHOSE ADMINISTRATION HAS FAILED TO FILL MANY KEY JOBS OVER ITS OBSESSION WITH DIVERSITY IS A FIRM OPPONENT OF RIGID QUOTAS IT'S ASTONISHING TO BEHOLD THAT THE COUNTRY THAT ROUTINELY LAUNCHES THE SPACE SHUTTLE COLUMBIA HAS A POLITICAL CLASS THAT PRODUCES SUCH COLLAPSED THINKING 9304280120 930428 PEPPERAND SALT AND QUIETLY TURN TO THE NEXT PAGE 9304280119 930428 ENTERPRISE GOLDEN CORRAL BUCKS SLOWDOWN WITH SHIFT IN DIRECTION CHAIN HEADS TOWARD FRANCHISEES AND BIG RESTAURANTS IN METROPOLITAN AREAS BY EUGENE CARLSON STAFF REPORTER OF THE WALL STREET JOURNAL RALEIGH NC GOLDEN CORRAL CORP IS ABOUT TO FIND OUT IF A SECOND SHARP CHANGE IN STRATEGY AND A BIGGER PUSH IN FRANCHISING CAN REVIVE ITS ONCERAPID GROWTH THE RALEIGHBASED RESTAURANT CHAIN STARTED AS A BUDGET STEAKHOUSE BUT WHEN RED MEAT LOST FAVOR WITH CONSUMERS IT SHIFTED TO AN EXPANDED MENU EMPHASIZING LOTS OF FRUITS AND SALADS OPENING SCORES OF UNITS THE CHAIN SAW SYSTEMWIDE SALES GROW TO 430 MILLION IN 1987 FIVE TIMES THE FIGURE IN 1980 BUT WITH INCREASED COMPETITION THE CLOSING OF WEAKER UNITS AND THE RECESSION GROWTH STALLED TO GET BACK ON TRACK THE COMPANY IS CHANGING AGAIN IT HAS STARTED TO TAKE ITS FORMULA WHICH HAS WORKED IN SMALL TOWNS INTO METROPOLITAN AREAS AND LIKE MORE THAN ONE CHAIN WHOSE EXPANSION HAS SLOWED THE COMPANY HAS DECIDED THAT A HEAVIER RELIANCE ON FRANCHISING OFFERS THE BEST CHANCE FOR RENEWED GROWTH AT A PRICE IT CAN AFFORD ONE BIG QUESTION IS HOW MANY POTENTIAL FRANCHISEES WILL DECIDE THAT THEY CAN AFFORD THE STEEP PRICE GOLDEN CORRAL IS ASKING BUT THE COMPANY SAYS THE CHANGED STRATEGY ALREADY HAS HELPED BOOST SYSTEMWIDE SALES TO A RECORD 480 MILLION LAST YEAR FROM 449 MILLION IN 1991 IT'S LIKE A THEATER SAYS THEODORE FOWLER JR GOLDEN CORRAL'S PRESIDENT IF PEOPLE AREN'T ATTENDING YOU CHANGE THE SHOW UNTIL TWO YEARS AGO THE COMPANY'S GROWTH TO 439 RESTAURANTS FROM 151 IN 1980 WAS FINANCED LARGELY OUT OF EARNINGS AND MOST OF THE RESTAURANTS ARE STILL COMPANYOWNED IN THE PAST SEVERAL YEARS THE COMPANY ALREADY HAS CONVERTED SOME COMPANYOWNED UNITS TO FRANCHISED OUTLETS BUT HENCEFORTH THE CHAIN WILL COUNT ON FRANCHISEES FOR THE BULK OF ITS GROWTH THE COMPANY A UNIT OF PRIVATELY HELD INVESTORS MANAGEMENT CORP HERE HOPES TO TAKE ITS HIGHVOLUME LOWPRICED FOOD CONCEPT INTO MOST OF THE NATION'S MAJOR METROPOLITAN AREAS IT CLEARLY WILL INVOLVE A TRANSFORMATION MEETING THE COMPANY'S EXPANSION GOALS WON'T BE EASY THE STEEP ENTRY PRICE WILL DISQUALIFY OR SCARE MANY POTENTIAL FRANCHISEES ESPECIALLY IN AN ERA WHEN ENTREPRENEURS ARE COUNTING PENNIES IT'S NOT LIKE OPENING UP A LOCAL DAIRY QUEEN NOTES JOHN METZ A PROSPECTIVE FRANCHISEE FROM DALLAS PA GOLDEN CORRAL CONCEDES THAT THE FRANCHISEE INVESTMENT REQUIRED IS HIGH THOUGH IT NOTES THAT THE CAPACITY OF EACH UNIT IS ALSO HIGH AT THE SAME TIME GOLDEN CORRAL IS TRYING TO OUTHUSTLE A FLOCK OF VALUEPRICED CHAINS THAT ALSO DISCOVERED A LUCRATIVE MARKET IN ALLYOUCANEAT SALAD AND DESSERT BARS COUPLED WITH STEAK CHICKEN AND SEAFOOD ENTREES AMONG OTHERS IN THIS FIELD ARE RYAN'S FAMILY STEAK HOUSES GREER SC BUFFETS INC MINNEAPOLIS QUINCY'S FAMILY STEAKHOUSE A UNIT OF TW HOLDINGS INC SPARTANBURG SC AND FRESH CHOICE INC SANTA CLARA CALIF BUDGET STEAKHOUSES SUCH AS THE BONANZA AND PONDEROSA CHAINS OWNED BY METROMEDIA CO EAST RUTHERFORD NJ AND THE SIZZLER INTERNATIONAL CHAIN IN LOS ANGELES ALSO COMPETE FOR BUDGETWARY DINERS BUT GOLDEN CORRAL HAS LOTS OF EXPERIENCE CHANGING DIRECTION FOR STRATEGIC REASONS THE COMPANY BEGAN AS A BUDGET STEAKHOUSE WITH WAGON WHEELS FOR DECOR AND WAITRESSES KNOWN AS STEERETTES AS RED MEAT LOST APPEAL AMONG HEALTHCONSCIOUS CONSUMERS THE CONCERN BROADENED ITS OFFERINGS IN THE MID1980S WITH AN EXPANDED SALAD BAR AND HOT BUFFET GOLDEN CORRAL'S SELLING POINTS NOW ALSO INCLUDE A BAKERY IN THE CENTER OF EACH STORE THAT PRODUCES ITEMS FROM THE OVEN TO THE TUNE OF A RINGING BRASS BELL EVERY 15 MINUTES DESPITE THE POPULARITY OF THE CHAIN'S SALAD BAR AND OTHER OFFERINGS THE COMPANY CONTINUES TO PROMOTE ITS NONFROZEN STEAKS SLICED DAILY BY A RESTAURANT MEATCUTTER WE DIDN'T WANT TO LOSE THAT SAYS BILL TORIELLO PARTNER IN A GOLDEN CORRAL FRANCHISE IN DUMFRIES VA REFERRING TO RED MEAT SALES IT'S VERY PROFITABLE AND WE DO IT WELL SINCE LOW PRICES ARE ALSO A BIG SELLING POINT IN THE FAMILY RESTAURANT SECTOR THE AVERAGE GOLDEN CORRAL CHECK HOVERS AROUND 550 A PERSON SUCCESS MEANS MOVING LARGE NUMBERS OF CUSTOMERS THROUGH THE CASHIER'S LINE THAT AS WELL AS THE ECONOMIC DECLINE IN MUCH OF SMALLTOWN AMERICA PROMPTED THE CHAIN'S DECISION TO OPEN LARGESCALE VERSIONS OF ITS RESTAURANTS CALLED G10S IN COMPANY PARLANCE IN METRO MARKETS WITH LARGE POPULATION BASES A TYPICAL 11500 SQUARE FOOT G10 RESTAURANT AVERAGES ABOUT 10000 CUSTOMERS A WEEK SAYS FRANCHISING VICE PRESIDENT LARRY TATE SALES PER UNIT AVERAGE ABOUT 3 MILLION A YEAR HE ADDS IT'S IMPORTANT THAT THE NAUGAHYDE STAYS WARM ADDS OPERATIONS VICE PRESIDENT GORDON POULSEN MICHAEL MUELLER A RESTAURANT ANALYST WITH MONTGOMERY SECURITIES SAN FRANCISCO SAYS IF THEY DO A GOOD JOB IN TERMS OF QUALITY I DON'T KNOW WHY THAT STRATEGY CAN'T WORK THE COMPANY ALSO HAS SIGNED AGREEMENTS WITH TWO MEXICAN FRANCHISEES WHO PLAN TO OPEN GOLDEN CORRALS IN SEVERAL NORTHERN MEXICAN CITIES IN A DEPARTURE FROM ITS NOALCOHOL POLICY BEER AND WINE WILL BE SOLD IN THE MEXICAN OUTLETS MR METZ WHO SAYS HE IS SHOPPING AROUND FOR RESTAURANT FRANCHISES SAYS GOLDEN CORRAL'S HIGH PRICE TAG FOR FRANCHISEES HAS AN ADVANTAGE IT GIVES YOU A SAFETY ZONE BEFORE SOMEONE CAN JUMP IN AND KNOCK YOU OFF IF YOU GET A LOWEND FRANCHISE AND IT'S REALLY GOOD SUDDENLY YOU'VE GOT 15 COMPETITORS MR METZ'S FIRM METZ ENTERPRISES INC OPERATES SIX FAMILYSTYLE RESTAURANTS IN THE PITTSBURGH AREA AND IN WEST VIRGINIA FRANCHISEES ALSO MUST SHOW THE COMPANY A PERSONAL BALANCE SHEET WITH 300000 IN LIQUID ASSETS AND A NET WORTH OF 15 MILLION ON TOP OF THAT RESTAURANT OPERATING EXPERIENCE IS A MUST THE COMPANY SAYS 9304280118 930428 WHO'S NEWS HONEYWELL INC HONEYWELL INC MINNEAPOLIS MANNIE JACKSON 54 YEARS OLD WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT OF MARKETING AND ADMINISTRATION OF THIS CONTROLS CONCERN MR JACKSON FORMERLY WAS SENIOR VICE PRESIDENT DEVELOPMENT AND CUSTOMER ALLIANCES IN THE INTERNATIONAL AND HOME AND BUILDING CONTROL BUSINESS AREAS OF HONEYWELL JIM PORTER 41 FORMERLY DIRECTOR OF HUMAN RESOURCES FOR THE HOME AND BUILDING CONTROL BUSINESS WAS NAMED VICE PRESIDENT HUMAN RESOURCES SUCCEEDING FOSS BOYLE WHO RETIRED LAST YEAR DALE TAYLOR 48 VICE PRESIDENT AND STAFF EXECUTIVE FOR THE COMPANY'S SPACE AND AVIATION BUSINESS WAS NAMED VICE PRESIDENT STRATEGIC PLANNING SUCCEEDING JAMES J GRIERSON WHO HAD BEEN ACTING VICE PRESIDENT STRATEGIC PLANNING ALSO SEVERAL OTHER APPOINTMENTS WERE ANNOUNCED CARL VIGNALI 58 FORMERLY VICE PRESIDENT AND GROUP EXECUTIVE OF THE COMPANY'S SPACE SYSTEMS GROUP WAS NAMED SENIOR VICE PRESIDENT OPERATIONS SUCCEEDING CLINTON O LARSON WHO PLANS TO RETIRE LATER THIS YEAR RON PETERSON FORMERLY VICE PRESIDENT AND GENERAL MANAGER OF THE COMPANY'S SYSTEMS AND RESEARCH CENTER AND SOLID STATE ELECTRONIC CENTER WAS NAMED TO THE NEW POST OF VICE PRESIDENT TECHNOLOGY AND ARNIE WEIMERSKIRCH 53 FORMERLY DIRECTOR OF QUALITY WAS NAMED VICE PRESIDENT QUALITY 9304280117 930428 TUESDAY'S MARKETS BONDS SLIDE AS NOTE SALE IS SLUGGISH TREASURY'S AUCTION SENDS YIELDS HIGHER STOCK PRICES ADVANCE BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL BOND PRICES TUMBLED AFTER THE TREASURY'S AUCTION OF TWOYEAR NOTES RECEIVED A LUKEWARM RECEPTION FROM INVESTORS BUT STOCKS ROSE AMID SIGNS OF PICKUP IN BUSINESS ACTIVITY THE DOW JONES INDUSTRIAL AVERAGE GAINED 1756 POINTS TO 341593 IN HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX CHALKED UP A 447 GAIN TO 43801 AND THE NASDAQ COMPOSITE INDEX JUMPED 665 TO 65252 STAGING A PARTIAL COMEBACK AFTER SUFFERING BRUISING LOSSES MONDAY THE GAINS IN STOCK PRICES CAME EVEN AS INTEREST RATES CONTINUED TO CLIMB THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR BOND SHOT UP TO 690 YESTERDAY FROM 683 THE DAY BEFORE LAST THURSDAY THE 30YEAR BOND WAS YIELDING 674 ECONOMISTS ATTRIBUTED THE RISE IN RATES TO THE POOR AUCTION OF TWOYEAR NOTES AND GROWING FEARS ABOUT THE PROSPECTS FOR PRESIDENT CLINTON'S DEFICITREDUCTION PLAN IN ADDITION JITTERS THAT INFLATION MAY BE HEATING UP JARRED INVESTORS OBVIOUSLY WE ARE GOING THROUGH ANOTHER INFLATION SCARE WITH THE RISE IN GOLD SAID NANCY LAZAR ECONOMIST AT ISI GROUP A NEW YORK MONEY MANAGEMENT FIRM GOLD FELL 160 TO 35120 AN OUNCE BUT HAS RALLIED 1170 SINCE THURSDAY MS LAZAR SAID THE RISE IN GOLD COULD BE MISLEADING SINCE 1989 GOLD PRICES HAVE RALLIED FIVE TIMES AND ON TWO OCCASIONS THE GAINS WERE PARTICULARLY BIG BUT EVEN THOUGH THE GOLD RALLIES HAVE BEEN PAINFUL FOR THE BOND MARKET MS LAZAR SAID THEY HAVE PROVED TO BE SHORTLIVED WITH MONEYSUPPLY GROWTH AROUND THE WORLD HISTORICALLY SLOW AND WIDESPREAD LAYOFFS PUTTING PRESSURE ON WAGES MS LAZAR SAID THERE IS NO REASON FOR INFLATION TO ACCELERATE IN THE NEXT FEW WEEKS SHE EXPECTS INVESTORS WILL BE FOCUSING ON THE GROWTH OF THE US MONEY SUPPLY IF IT COMES IN WEAK BECAUSE OF THE TAX SEASON THAT COULD HELP THE BOND MARKET SHE SAID THOUGH RISING INTEREST RATES GENERALLY TEND TO HURT STOCK PRICES ANALYSTS SAID INVESTORS SHRUGGED OFF YESTERDAY'S RATE MOVE BECAUSE OF ENCOURAGING ECONOMIC NEWS A REPORT FROM JOHNSON REDBOOK SHOWED THAT SALES AT THE NATION'S RETAILERS IN THE THREE WEEKS ENDED SATURDAY ROSE A SEASONALLY ADJUSTED 23 FROM MARCH WORLDWIDE STOCK PRICES GAINED IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX ADDED 069 TO 10430 STOCKS ROSE VOLUME TOTALED 2837 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 962 ISSUES ADVANCED AND 954 DECLINED BOND PRICES DROPPED THE TREASURY'S BENCHMARK 30YEAR ISSUE MORE THAN 7/8 POINT OR MORE THAN 875 FOR EACH 1000 FACE AMOUNT TO YIELD 690 9304280116 930428 MANAGEMENT DELOITTE WANTS MORE WOMEN FOR TOP POSTS IN ACCOUNTING BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DELOITTE & TOUCHE THE NATION'S THIRDBIGGEST ACCOUNTING FIRM IS SETTING ITS SIGHTS ON ELEVATING MORE WOMEN TO PARTNERS IN A PROFESSION LONG DOMINATED BY MEN DELOITTE JOINS A HOST OF MAJOR ACCOUNTING FIRMS THAT HAVE LAUNCHED PROGRAMS TO INCREASE THE RANKS OF FEMALE PARTNERS BUT DELOITTE'S EFFORT UNVEILED YESTERDAY APPEARS TO BE AMONG THE MOST COMPREHENSIVE IT INVOLVES WORKSHOPS FLEXIBLE WORK ARRANGEMENTS AND SPECIALIZED CAREER PLANNING FOR WOMEN THE OBSTACLES ARE FORMIDABLE THE ACCOUNTING PROFESSION HAS SPENT NEARLY 10 YEARS TRYING TO IMPROVE THE STATUS OF WOMEN WITH SCANT RESULTS TODAY ONLY ABOUT 5 OF THE PARTNERS OF THE NATION'S SIX BIGGEST ACCOUNTING FIRMS ARE WOMEN UP FROM 1 A DECADE AGO ALSO THERE ARE MANY CULTURAL AND SOCIETAL BARRIERS TO WOMEN BEING PARTNERS PARTLY BECAUSE WOMEN OFTEN ARE EXPECTED TO BALANCE PERSONAL COMMITMENTS TO THEIR FAMILIES SAID J MICHAEL COOK DELOITTE'S CHAIRMAN AT A NEWS CONFERENCE HERE FEMALE EXECUTIVES AT DELOITTE WELCOMED ITS MOVE WITH CURRENT DEMOGRAPHICS THIS PROGRAM WILL ENABLE US TO BE MORE COMPETITIVE IN THE FUTURE SAID ELLEN P GABRIEL A BOSTON PARTNER WHOM DELOITTE RECENTLY NAMED NATIONAL DIRECTOR FOR THE ADVANCEMENT OF WOMEN A NEW POST AND AS A MOTHER OF A SIXYEAROLD GIRL SHE ADDED I FEEL SUCH PROGRAMS WILL GIVE HER MORE OPPORTUNITIES IN THE FUTURE SOME MALE PARTNERS AT BIG ACCOUNTING FIRMS SAY THAT THE RIGORS OF BEING A PARTNER HAVE MADE IT TOUGH FOR WOMEN TO RISE TO THE MANAGERIAL RANKS IT'S A VERY DEMANDING PROFESSION PARTICULARLY DURING TAX SEASON AND ACCOUNTINGFIRM PARTNERS DO A LOT OF TRAVEL WHICH COULD CREATE MANY PROBLEMS FOR WOMEN PERSONALLY AND PROFESSIONALLY SAID A MALE PARTNER AT ONE FIRM DESPITE SUCH PERCEPTIONS OF OBSTACLES FOR WOMEN MR COOK SAID DELOITTE INTENDS TO LOWER ITS RATE OF TURNOVER AMONG FEMALE MANAGERS NOW HIGHER THAN AMONG MEN AND TO PROMOTE MORE WOMEN TO PARTNERSHIP RANKS OF DELOITTE'S 1500 PARTNERS 77 ARE FEMALE HE ESTIMATED THAT 20 OF DELOITTE'S 80 NEW PARTNERS THIS YEAR WILL BE WOMEN UP FROM BETWEEN 10 AND 13 OVER THE PAST THREE YEARS BY THE YEAR 2000 WE HOPE TO HAVE A MUCH MORE SIGNIFICANT NUMBER OF WOMEN PARTNERS AT OUR FIRM MR COOK SAID HE CONCEDED HOWEVER THAT IT MAY TAKE A DECADE OR MORE FOR MANY WOMEN TO BECOME PARTNERS BECAUSE THE FIRM PICKS PARTNERS FROM PROFESSIONALS HIRED ABOUT A DOZEN YEARS BEFORE ONE HOPEFUL SIGN FOR WOMEN THE SIX BIGGEST ACCOUNTING FIRMS REPORT THAT ABOUT 50 OF THEIR ENTRYLEVEL EMPLOYEES NOW ARE FEMALE AND ABOUT 20 OR MORE OF MANAGERS ARE WOMEN ABOUT 35 OF OUR MANAGERS ARE WOMEN SAID PAUL J OSTLING VICE CHAIRMAN FOR HUMAN RESOURCES AT ERNST & YOUNG THE SECONDBIGGEST US ACCOUNTING FIRM BUT TURNOVER FOR WOMEN IS 5 TO 10 HIGHER THAN FOR MEN AFTER THE FIRST THREE YEARS OF EMPLOYMENT HE ADDED AS AT OTHER FIRMS A BIG BARRIER TO WOMEN ACHIEVING PARTNERSHIP AT ERNST & YOUNG HAS BEEN THEIR NEED TO WORK LONG HOURS DURING THE PEAK PERIODS OF JANUARY THROUGH APRIL WE'VE BEEN TRYING TO OFFER FLEXIBLE WORK SCHEDULES FOR BOTH WOMEN AND MEN OVER THE PAST FIVE YEARS AND HAVE SOUGHT TO PROVIDE DAYCARE HELP FOR WOMEN MR OSTLING SAID A PROGRAM ARTHUR ANDERSEN & CO BEGAN IN 1989 TO ELEVATE MORE WOMEN TO THE PARTNERSHIP RANKS HAS PUSHED UP THE PROPORTION OF FEMALE PARTNERS TO 45 OF ITS 1365 PARTNERS THAT COMPARES WITH JUST UNDER 4 FOUR YEARS AGO SAID PETER PESCE MANAGING DIRECTOR OF HUMAN RESOURCES FOR ANDERSEN WORLDWIDE TOGETHER WITH ITS ANDERSEN CONSULTING UNIT ANDERSEN IS THE BIGGEST US ACCOUNTING AND CONSULTING FIRM AT A DOZEN OFFICES INCLUDING CHICAGO BOSTON SAN FRANCISCO AND ATLANTA WE OFFER FLEXIBLE WORK HOURS DURING THE SUMMER WITH PART OR ALL OF FRIDAY OFF IT HAS BEEN WELLRECEIVED BY WOMEN AND MEN ALIKE SAID MR PESCE IN ATLANTA ANDERSEN RECENTLY HIRED A CONCIERGE TO HELP PARTNERS SHOP PICK UP LAUNDRY AND PAY BILLS THE SERVICE RELIEVES FAMILY AND PERSONAL PRESSURES ON BOTH FEMALE AND MALE PARTNERS HE SAID LAST YEAR KPMG PEAT MARWICK ELEVATED MARY DUPONT TO THE JOB OF PARTNERINCHARGE OF PERSONNEL ADMINISTRATION MS DUPONT THE MOTHER OF THREE HAS WORKED FOR THE FOURTHBIGGEST US ACCOUNTING FIRM FOR ABOUT 25 YEARS AND BEEN A PARTNER FOR 14 YEARS ABOUT 47 OF OUR 600 NEWEST MANAGERS ARE WOMEN AS COMPARED WITH MORE THAN 25 OF ALL OUR MANAGERS SAID BERNARD MILANO THE FIRM'S PARTNER IN CHARGE OF RECUITING AND PERSONNEL ADMINISTRATION COOPERS & LYBRAND THE FIFTHBIGGEST US ACCOUNTING FIRM SAID ONE OF ITS DOZEN VICE CHAIRMEN IS FEMALE AS IS ONE OF ITS 16 REGIONAL MANAGING PARTNERS BOTH WOMEN AND MEN ARE SEEKING MORE TIME FOR THEIR PERSONAL LIVES OUR RESPONSE WITH FLEXIBLE WORK HOURS WILL HELP BRING MORE WOMEN INTO MANAGERIAL RANKS SAID ROBERT MCDOWELL THE FIRM'S DIRECTOR OF NATIONAL HUMAN RESOURCES TERENCE MCGUIRE DIRECTOR OF DIVERSITY PROGRAMS AT PRICE WATERHOUSE THE SIXTHBIGGEST US ACCOUNTING FIRM SAID THAT THE FIRM HAS BEEN USING PARTTIME ACCOUNTANTS AND CONSULTANTS MANY OF THEM WOMEN AT CERTAIN OFFICES FOR FOUR YEARS THIS OPTION HELPS EASE THE PRESSURES ON WORKING MOTHERS IN ADDITION MR MCGUIRE SAID EACH OFFICE HAS A GRASSROOTS PROGRAM TO GIVE WOMEN MAXIMUM OPPORTUNITIES IN THE FIRM HE ADDED THE MOVE TO PROMOTE MORE WOMEN IS INEVITABLE BECAUSE 27 OF PRICE'S MANAGERS AND SENIOR MANAGERS CURRENTLY ARE WOMEN AND ABOUT 50 OF OUR NEW HIRES ARE WOMEN FOR ITS NEW PUSH DELOITTE ALSO HIRED LYNN MARTIN FORMER SECRETARY OF LABOR IN THE BUSH ADMINISTRATION TO ADVISE THE FIRM ABOUT ITS PROGRAM MS MARTIN NOTED THAT A RECENT LABOR DEPARTMENT SURVEY OF THE 1000 BIGGEST US COMPANIES SHOWED THAT WOMEN REPRESENTED ONLY 169 OF MORE THAN 31000 MANAGERS BECAUSE OF THE HIGH LEVEL OF WOMEN ENTRYLEVEL EMPLOYEES IN ACCOUNTING I TRULY BELIEVE THAT OPPORTUNITIES FOR WOMEN MAY BE GREATER IN THIS PROFESSION THAN ELSEWHERE SHE SAID AT THE NEWS CONFERENCE DELOITTE WITHOUT FORCE OR PRESSURE IS SINCERE IN WANTING TO MOVE AHEAD IN THIS AREA 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 9304280115 930428 RTC SUES EXAIDES OF ILLINOIS S&L OVER NEGLIGENCE BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE RESOLUTION TRUST CORP SUED 12 FORMER OFFICERS AND DIRECTORS OF AN ILLINOIS SAVINGSANDLOAN ASSOCIATION INCLUDING REP HENRY HYDE TO RECOVER DAMAGES IN CONNECTION WITH THE THRIFT'S FAILURE THE RTC THE GOVERNMENT'S S&L CLEANUP AGENCY FILED A LAWSUIT IN FEDERAL DISTRICT COURT IN CHICAGO ACCUSING THE 12 DEFENDENTS OF NEGLIGENCE AND MISMANAGEMENT IN OVERSEEING CLYDE FEDERAL SAVINGS & LOAN ASSOCIATION NORTH RIVERSIDE ILL THE FEDERAL OFFICE OF THRIFT SUPERVISION ORDERED THE S&L INTO RECEIVERSHIP ON FEB 1 1990 NAMING THE RTC AS THE RECEIVER THE AGENCY ESTIMATES THE COST TO TAXPAYERS FOR COVERING THE FAILED THRIFT'S SAVINGS DEPOSITS AT 72 MILLION THE TRANSACTION FOR WHICH MR HYDE WAS CITED WILL COST TAXPAYERS MORE THAN 37 MILLION AN RTC SPOKESMAN SAID IN A STATEMENT YESTERDAY MR HYDE CALLED THE RTC LAWSUIT BASELESS HE SAID THAT IT QUESTIONS MY COMPETENCY NOT MY INTEGRITY AND THAT HE EXPECTS TO BE DISMISSED AS A DEFENDANT REP HYDE SAID HE SERVED AS AN OUTSIDE DIRECTOR FOR TWOANDAHALF YEARS AND THAT HE RESIGNED NINE YEARS AGO WHEN THE S&L WAS SOLVENT AND FLOURISHING REP HYDE WAS A DIRECTOR AT THE THRIFT FROM 1981 TO 1984 THE RTC CHARGED THE ILLINOIS REPUBLICAN AND THE OTHERS WITH FAILING TO HEED REGULATORY CRITICISMS BY THE FEDERAL HOME LOAN BANK BOARD FAILING TO CARRY OUT PROPER LENDING AND INVESTMENT POLICIES AND ANALYSES AND FAILING TO INSTITUTE OR ENFORCE APPROPRIATE AUDITING PROCEDURES AT THE TIME THE BANK BOARD WAS THE S&L INDUSTRY'S REGULATOR THE TRANSACTION FOR WHICH MR HYDE AMONG OTHERS WAS CITED INVOLVED A 5 MILLION LOAN MADE BY CLYDE FEDERAL AS PART OF A LARGER 285 MILLION LOAN TO BUILD LUXURY BEACHFRONT CONDOMINIUMS IN PORT ARANSAS TEXAS CALLED THE ARANSAS PRINCESS IT WAS THE S&L'S FIRST OUTOFSTATE CONSTRUCTION LOAN THE RTC SAID THE BOARD DELEGATED AUTHORITY TO THE THRIFT'S ADVISORY COMMITTEE TO APPROVE REALESTATE LOANS BUT NONE OF THE DEFENDANTS WHO SERVED ON THE COMMITTEE NOR ANYONE IN THE THRIFT'S LOAN DEPARTMENT OR ON ITS BOARD HAD ANY EXPERIENCE IN OUTOFSTATE LENDING THE RTC SAID THE BOARD DIDN'T ESTABLISH WRITTEN LOAN POLICIES FOR SUCH LENDING RELYING INSTEAD ON INFORMATION FROM A BROKER WHO RECEIVED A SUBSTANTIAL FEE FOR THE LOAN THE AGENCY SAID THE BROKER'S ANALYSES WERE INADEQUATE HOWEVER AND THE APPRAISAL MADE BY APPRAISERS HIRED BY THE BROKER SHARPLY EXAGGERATED THE VALUE OF THE COLLATERAL THE RTC SAID THE THRIFT ALSO LACKED RELEVANT INFORMATION ON THE LEAD LENDER AMONG OTHER SHORTCOMINGS THE RTC SAID THE BORROWER DEFAULTED ON THE LOAN BEFORE CONSTRUCTION WAS COMPLETED THE RTC SAID 9304280113 930428 PEPSICO POSTS 11 PROFIT RISE BEFORE CHARGES BY ELEENA DE LISSER STAFF REPORTER OF THE WALL STREET JOURNAL PEPSICO INC SAID FIRSTQUARTER PROFIT WAS UP 11 BEFORE A YEAREARLIER CHARGE BOLSTERED BY A STRONG SHOWING IN ITS DOMESTIC BEVERAGE AND SNACK BUSINESS BUT PEPSI'S STOCK EDGED DOWN YESTERDAY APPARENTLY IN REACTION TO WEAK PROFITS OVERSEAS THE PURCHASE NY FOOD AND SOFTDRINK CONCERN REPORTED NET INCOME OF 2604 MILLION OR 32 CENTS A SHARE FOR THE FIRST QUARTER COMPARED WITH A PROFIT OF 235 MILLION OR 29 CENTS A SHARE A YEAR EARLIER BEFORE ACCOUNTING CHANGES AS REPORTED MANDATED ACCOUNTING CHANGES FOR RETIREE BENEFITS AND INCOME TAXES PROMPTED PEPSI TO RESTATE RESULTS FOR THE 1992 FIRST QUARTER RESULTING IN A LOSS OF 6924 MILLION OR 86 CENTS A SHARE REVENUE IN THE MOST RECENT QUARTER CLIMBED 13 TO 509 BILLION FROM 450 BILLION A YEAR EARLIER THE COMPANY'S RESULTS WERE SLIGHTLY BELOW ANALYSTS' ESTIMATES WHICH RANGED FROM 33 CENTS TO 35 CENTS A SHARE PEPSI'S SHARE PRICE YESTERDAY FELL AS LOW AS 35 BEFORE CLOSING AT 36625 OFF 625 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MOST ANALYSTS SAID THEY WERE UNCONCERNED WITH THE LOWERTHANEXPECTED PERSHARE EARNINGS CITING EXPENSES FROM TWO RECENT FOREIGN ACQUISITIONS AND AN UNFAVORABLE CURRENCY EXCHANGE AS HAMPERING EARNINGS GROWTH FACTOR OUT THESE ITEMS SAID JOSEPH DOYLE AN INDUSTRY ANALYST WITH SMITH BARNEY HARRIS UPHAM & CO AND PEPSI'S RESULTS WOULD HAVE BEEN WITHIN ANALYSTS' ESTIMATES THE MAJOR GROUPS WERE SURPRISINGLY STRONG ESPECIALLY DOMESTIC SOFT DRINKS AND DOMESTIC SNACKS HE SAID THE STOCK MARKET SAID DAVID GOLDMAN AN OPPENHEIMER & CO BEVERAGE INDUSTRY ANALYST OVERREACTED TO PEPSI'S FIRSTQUARTER RESULTS THE COMPANY'S INTERNATIONAL OPERATIONS HE SAID HAVE BEEN CRANKING OUT 20PLUS EARNINGS GAINS FOR A WHILE AND WE HAVE ONE QUARTER OF SLIPPAGE AND EVERYONE RUNS SCREAMING TO THE HILLS IN THE US THE FRITOLAY UNIT TURNED IN A SOLID FIRST QUARTER POSTING A 9 VOLUME INCREASE DRIVEN IN PART BY DOUBLEDIGIT GAINS IN LAY'S TOSTITOS AND SUNCHIPS SNACK LINES FRITO LAY'S INTERNATIONAL PROFITS DECLINED 10 TO 46 MILLION BECAUSE OF SOFT VOLUMES AND EXPENSES LINKED TO IMPROVING A SNACKFOOD OPERATION IN MEXICO IN PEPSI'S BEVERAGE BUSINESS DOMESTIC PROFITS ROSE 22 TO 172 MILLION HELPED IN PART BY BOTTLER ACQUISITIONS AND LOWER DISCOUNTS TO RETAILERS OPERATIONS ALSO BENEFITED FROM LOWER INGREDIENT COSTS THE COMPANY SAID DOMESTIC CASE VOLUME INCREASED 3 REFLECTING THE NATIONAL ROLLOUT OF CRYSTAL PEPSI AND GROWTH OF THE COMPANY'S MOUNTAIN DEW BRANDS ON THE INTERNATIONAL SIDE BEVERAGE PROFITS FELL 28 TO 83 MILLION PRIMARILY BECAUSE OF ACQUISITION COSTS IN SPAIN INTERNATIONAL BOTTLER CASE SALES INCREASED 5 RESTAURANT PROFITS BENEFITED FROM A STRONG DOMESTIC PERFORMANCE PROFITS AT KFC TRIPLED IN THE US REFLECTING A SHIFT TO HIGHERPRICED ITEMS SALES AT OUTLETS OPEN AT LEAST A YEAR HOWEVER DECLINED 3 AT PIZZA HUT SAMESTORE SALES FOR DOMESTIC RESTAURANTS INCREASED MORE THAN 3 INTERNATIONAL PROFITS FOR BOTH KFC AND PIZZA HUT SLIPPED BECAUSE OF PRICE COMPETITION IN AUSTRALIA WHICH IS PIZZA HUT'S LARGEST FOREIGN MARKET AND KFC'S SECONDLARGEST INTERNATIONAL MARKET AFTER JAPAN TACO BELL'S PROFITS FELL 4 HURT BY HIGHER INSURANCE COSTS AND CONTINUED INVESTMENT IN THE HOT 'N NOW HAMBURGER CONCEPT SAMESTORE SALES INCREASED ONLY 2 REFLECTING A CHANGE IN PRODUCT MIX TO INCLUDE HIGHERPRICED ITEMS 9304280112 930428 REVIEW & OUTLOOK EDITORIAL LINE ITEM VOODOO AS WITH TERM LIMITS THE AMERICAN PEOPLE BY OVERWHELMING MARGINS ENDORSE THE LINE ITEM VETO AS A TOOL OF POLITICAL REFORM IN THE UNITED STATES LATELY INFLUENTIAL DEMOCRATS SUCH AS SENATOR BILL BRADLEY HAVE ENDORSED IT BILL CLINTON CAMPAIGNED FOR THE LINE ITEM VETO LAST YEAR BUT NOW CONGRESSIONAL BARONS ARE OFFERING HIM A POOR SUBSTITUTE THAT THEY HOPE WILL PLACATE THE PUBLIC WHILE IT DOES LITTLE TO CURB GOVERNMENT'S INSTINCT TO SPENDING TODAY THE HOUSE WILL LIKELY DEBATE SOMETHING CALLED EXPEDITED RESCISSION IT IS TO THE LINE ITEM VETO WHAT CHICORY FLAVORED WATER IS TO COLOMBIAN COFFEE IT MAY LOOK THE SAME BUT ONE TASTE TELLS THE TALE A TRUE LINE ITEM VETO WOULD MEAN THAT THE PRESIDENT WOULD RECEIVE A SPENDING BILL FROM CONGRESS AND WOULD THEN HAVE THE RIGHT TO STRIKE OUT ITEMS THAT HE CONSIDERED UNNECESSARY SPENDING CONGRESS COULD RESTORE THE SPENDING BUT ONLY BY A TWOTHIRDS VOTE OF BOTH THE HOUSE AND SENATE THE ERSATZ EXPEDITED RESCISSION PROCESS WOULD BE A CHARADE THE PRESIDENT WOULD HAVE TO SIGN AN ENTIRE SPENDING BILL OFTEN COMBINING SPENDING FOR THREE SEPARATE FEDERAL DEPARTMENTS HE COULD ATTACH A LIST OF SPENDING ITEMS HE DISAGREED WITH AND THEN ASK CONGRESS TO ELIMINATE THEM BUT HE COULDN'T ASK THAT AN EXISTING PROGRAM BE REDUCED BELOW ITS PREVIOUS BUDGET AND HE COULDN'T CUT A NEW PROGRAM BY MORE THAN 25 THE MODEST CUTS HE COULD SUGGEST WOULD STICK ONLY IF BOTH HOUSES DECIDED BY MAJORITY VOTE TO CONCUR REP ERNEST ISTOOK IS A FRESHMAN REPUBLICAN FROM OKLAHOMA WHO HAS BECOME A CHAMPION OF A GENUINE LINE ITEM VETO HE PRESENTED HIS ANTIPORK CREDENTIALS LAST YEAR WHEN HE RAN FOR CONGRESS SAYING HE'D REFUSE TO VOTE FOR UNJUSTIFIED SPENDING PROGRAMS EVEN IF THEY HELPED HIS DISTRICT A PIG IS A PIG EVEN IF IT'S ONE WHO LIVES AT HOME HE SAID REP ISTOOK SAYS THAT EXPEDITED RESCISSION WILL DO ALMOST NOTHING TO CONTROL PORK HE NOTES THAT MANY MEMBERS OF CONGRESS AREN'T EMBARRASSED TO BE ASSOCIATED WITH PORK BARREL SPENDING THEY REVEL IN IT ONLY A PRESIDENT ELECTED BY ALL AMERICANS CAN FREQUENTLY RISE ABOVE PAROCHIAL CONCERNS AND ACT IN THE NATIONAL INTEREST REP ISTOOK MAINTAINS WHEN THE CATO INSTITUTE RECENTLY SURVEYED THE NATION'S CURRENT AND FORMER GOVERNORS IT FOUND THAT 92 BACKED A TRUE LINE ITEM VETO IT MAKES THE DIFFERENCE BETWEEN TALKING ABOUT CUTTING SPENDING AND MAKING IT A REALITY SAYS DOUG WILDER THE DEMOCRATIC GOVERNOR OF VIRGINIA NOT SURPRISINGLY ALL 10 FORMER GOVERNORS WHO SERVE IN CONGRESS BACK A LINE ITEM VETO FOR THE PRESIDENT THE PUSH TO REPLACE THE LINE ITEM VETO WITH A SHAM SUBSTITUTE IS TYPICAL OF HOW CONGRESS IS DEALING WITH REFORM IN THIS SESSION IT IS FAKING IT MEMBERS RELUCTANTLY ABOLISHED SEVERAL SHOWBOATING SELECT COMMITTEES BUT THEN ALLOCATED THEIR BUDGETS TO OTHER PANELS SO THAT NO OVERALL SAVINGS WILL RESULT THE LEADERSHIP ADOPTED NEW HOUSE RULES OSTENSIBLY TO EXPEDITE LEGISLATION BUT THEY'LL HAVE THE PRACTICAL EFFECT OF LIMITING REAL DEBATE THE MORE MEMBERS OF CONGRESS AVOID CHANGING THEIR ARROGANT WAYS THE MORE THE PUBLIC WILL CONTINUE TO CLAMOR FOR THE ONLY REAL REFORM IT KNOWS WILL STICK TERM LIMITS 9304280111 930428 CERTAIN SMALL BANKS PERMITTED TO REDUCE PREMIUMS TO FDIC WASHINGTON THE FEDERAL DEPOSIT INSURANCE CORP VOTED TO ALLOW 742 BANKS THAT IMPROVED THEIR FINANCIAL CONDITIONS TO REDUCE THEIR DEPOSIT INSURANCE PREMIUMS THE FDIC ALSO POSTPONED FOR A SECOND TIME ACTION ON A STAFF PROPOSAL TO EXEMPT MOST BANKS FROM RIGOROUS AUDIT REQUIREMENTS IMPOSED BY A 1991 BANKING LAW THE PROPOSAL WOULD EXEMPT BANKS AND THRIFTS WITH ASSETS OF LESS THAN 500 MILLION FROM REQUIREMENTS THAT AUDITORS ATTEST TO THE EFFECTIVENESS OF THE BANK'S INTERNAL CONTROLS AND COMPLIANCE WITH BANKING LAWS A GROUP OF 240 BANKS AND THRIFTS WITH ASSETS OF MORE THAN 3 BILLION WOULD FACE NEW REQUIREMENTS GOVERNING THE COMPOSITION OF OUTSIDE AUDIT COMMITTEES AN EARLIER DRAFT IMPOSED THE RULES ON MUCH SMALLER INSTITUTIONS THE DECISION TO TRIM PREMIUMS WHICH HELPS SEVERAL LARGE BANKS FOLLOWED AN INDUSTRY APPEAL FOR FAIR TREATMENT UNDER A NEW LAW THAT IMPOSES HIGHER DEPOSIT INSURANCE PREMIUMS ON WEAK BANKS THAN ON STRONG ONES THE PREMIUMS RANGE FROM 23 CENTS FOR EACH 100 OF DOMESTIC DEPOSITS TO 31 CENTS DEPENDING LARGELY ON THE BANK'S CAPITAL CONDITION THE FDIC HAD RANKED BANKS FOR PREMIUM PURPOSES ACCORDING TO THEIR CAPITAL ON JUNE 30 1992 BUT MANY BANKS NOTING THEY HAD FOLLOWED YEARLONG PLANS TO BOOST THEIR CAPITAL ARGUED THAT THEY SHOULD BE CLASSIFIED ACCORDING TO THEIR CAPITAL ON DEC 31 THE AGENCY ACCEPTED THE ARGUMENT SAVING 92 MILLION FOR THE 742 BANKS THAT HAD MOVED TO LOWER PREMIUM CATEGORIES 9304280110 930428 WHO'S NEWS BANKAMERICA CORP BANKAMERICA CORP SAN FRANCISCO LUKE S HELMS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS BANK'S WASHINGTON STATE AFFILIATE SEAFIRST BANK WAS NAMED BANKAMERICA VICE CHAIRMAN OF ALL AFFILIATE BANKS OUTSIDE CALIFORNIA SUCCEEDING MR HELMS AT SEAFIRST IS JOHN V RINDLAUB BANKAMERICA GROUP EXECUTIVE VICE PRESIDENT AND HEAD OF THE ASIA DIVISION THE MOVES TAKE EFFECT AUG 1 9304280109 930428 NYMEX OFFERS 10 MILLION IN BID TO ACQUIRE COMEX BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL THE NEW YORK MERCANTILE EXCHANGE MOVING TO CAPITALIZE ON THE DEMISE OF A CHICAGO BOARD OF TRADE PROPOSAL TO TAKE OVER NEW YORK'S COMMODITY EXCHANGE OFFERED TO ACQUIRE COMEX ITSELF NYMEX BEST KNOWN FOR ITS FUTURES CONTRACTS BASED ON CRUDE AND HEATING OIL OFFERED 10 MILLION FOR THE AILING COMEX WHICH TRADES CONTRACTS BASED ON PRECIOUS METALS AND COPPER NYMEX ALSO OFFERED TO GRANT COMEX TRADERS ACCESS TO NEW PRODUCTS THAT NYMEX DEVELOPS IN THE FUTURE THE OFFER OF CASH FOR COMEX APPEARS TO ADDRESS ONE OF THE MAIN COMPLAINTS COMEX TRADERS VOICED ABOUT THE CHICAGO EXCHANGE'S TAKEOVER PROPOSAL THE CBOT WANTED TO SWALLOW THE AILING NEW YORK METALS EXCHANGE WITHOUT PAYING ANY MONEY FOR IT I THINK COMEX TRADERS WILL BE MUCH MORE FRIENDLY TO THIS OFFER THAN THE ONE FROM CHICAGO SAID JOHN WALSH A COMEX MEMBER I THINK THIS SHOULD HAVE BEEN DONE YEARS AGO TOGETHER THE TWO EXCHANGES COULD BE A MORE DOMINANT FORCE YET THE NYMEX PROPOSAL DOESN'T APPEAR TO RESOLVE THE OTHER MAJOR BEEF OF COMEX TRADERS ABOUT THE CBOT OFFER THAT IT DIDN'T GRANT COMEX TRADERS ACCESS TO KEY CBOT FUTURES CONTRACTS UNDER THE NYMEX MERGER PROPOSAL NYMEX TRADERS WOULD BE ALLOWED TO TRADE ANY COMEX CONTRACTS ON A PROPRIETARY BASIS WHILE COMEX TRADERS WOULD BE ALLOWED TO TRADE ONLY NEW NYMEX CONTRACTS THAT MEANS COMEX TRADERS WOULDN'T HAVE ACCESS TO SUCH LUCRATIVE PRODUCTS AS NYMEX'S CRUDE AND HEATING OIL FUTURES AND OPTIONS MOREOVER COMEX TRADERS FACE A LOSS OF AUTONOMY IN THE DEAL COMEX WOULD BECOME A WHOLLY OWNED DIVISION OF NYMEX COMEX'S CURRENT 25MEMBER BOARD WOULD BE DISSOLVED AND REPLACED BY A 12MEMBER GOVERNING COMMITTEE COMPOSED OF NINE COMEX MEMBERS AND THREE NYMEX MEMBERS THIS COMMITTEE WOULD BE SUBORDINATE TO THE NYMEX BOARD TRADE CLEARING AND PROCESSING FUNCTIONS OF THE TWO EXCHANGES WOULD BE MERGED UNDER THE PROPOSAL WHICH MUST BE APPROVED BY TWOTHIRDS MAJORITIES OF BOTH COMEX AND NYMEX MEMBERS COMEX HAS BEEN PLAGUED IN RECENT YEARS BY DECLINING TRADING VOLUME IN ITS KEY GOLD SILVER AND COPPER CONTRACTS EXCHANGE DIRECTORS ARE SEEKING WAYS TO REDUCE COSTS AND STRENGTHEN THE METALS EXCHANGE'S FINANCIAL POSITION FOR INSTANCE THEY HOPE TO CUT 4 MILLION IN STAFF COSTS THROUGH A MERGER WITH ANOTHER EXCHANGE SAID ALAN HANSON SPOKESMAN FOR COMEX BROKERAGE FUNCTIONS AT THE TWO EXCHANGES WOULD BE UNAFFECTED BY THE PROPOSAL TO BROKER TRADES AT EITHER EXCHANGE A FIRM WOULD HAVE TO BE A MEMBER OF THAT PARTICULAR EXCHANGE 9304280108 930428 TRYING TO REPLACE THOSE DIVOTS IN THE CARPETING GETS EXPENSIVE BY SHARON MASSEY STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO CARL ERICKSON COULDN'T DECIDE LAST FRIDAY WHETHER HE SHOULD GO TO WORK OR PLAY GOLF SO HE DID BOTH MR ERICKSON AN EXECUTIVE WITH MCI TELECOMMUNICATIONS CORP WAS ONE OF 500 PEOPLE TAKING PART IN QUALIFYING FOR THE UNITED WAY OF THE BAY AREA'S FIRST INDOOR GOLF CHAMPIONSHIP ABOUT 25 TWOPERSON TEAMS FROM 15 COMPANIES AROUND THE BAY AREA WILL TEE OFF FRIDAY IN THE CHAMPIONSHIP UNDER ONE OF THE TOURNAMENT'S FEW RULES THE TEAM WITH THE LOWEST SCORE THROUGH NINE HOLES WINS COMPETITORS INCLUDE WEEKEND HACKERS NOVICES AND GOLFERS WITH LOW HANDICAPS IN THE QUALIFYING ROUND WHICH CONTINUES THROUGH TODAY AT SOME COMPANIES PARTICIPANTS PAY 5 TO 25 FOR THE CHANCE TO PUTTER AROUND THEIR OFFICES COMPANIES WILL PAY 250 FOR EACH TWOPERSON TEAM THEY SEND TO THE FINALS COURSES HAVE BEEN LAID OUT BY OFFICE MANAGERS OF THE PARTICIPATING COMPANIES AND EXECUTIVES OF THE UNITED WAY MR ERICKSON'S ROUND AT MCI BEGAN AT SONYA'S SLINKY SLAMMER A PARTWO HOLE CONSISTING OF A SLINKY STRETCHED OUT FOR ABOUT 10 FEET IN FRONT OF THE HOLE MISSING THE SLINKY ADDED A STROKE TO THE GOLFER'S SCORE IT'S NOT AS EASY AS CONTRA COSTA WHERE I USUALLY GOLF BUT THAT SHOULD HAVE BEEN A DEUCE SAYS MR ERICKSON WHO SCORED A 3 ON THE HOLE HE WON'T BE GOING TO THE FINAL HE LOST OUT TO A PAIR OF WEEKEND HACKERS FOR PLAYERS INSIDE THE PLEASANTON CALIF OFFICES OF GTE MOBILENET THE GOING WAS ROUGHER AS COMPETITORS STEPPED UP TO THE SECOND HOLE TOURNAMENT OFFICIALS TOOK AWAY THEIR PUTTERS AND HANDED THEM HOCKEY STICKS THAT SECOND HOLE WAS TOUGH SAYS JON WEISMAN AN ACCOUNT MANAGER FOR GTE MOBILENET BUT IT WASN'T AS TOUGH AS THE NINTH THAT'S WHEN THEY HANDED US BACK OUR PUTTERS THEN SAID THEY HAD TO BE USED BACKWARD ONE CONTESTANT ACCIDENTALLY POPPED THE BALL SEVERAL FEET INTO THE AIR AFTER WHICH IT BOUNCED OFF A DOOR AND INTO THE HOLE FOR A HOLEINONE SOME COMPANIES WILL SEND MORE THAN ONE TEAM TO THE FINAL HOPING THEIR PEOPLE WILL NAB PRIZES THAT INCLUDE 100 DINNERS AND AIRLINE TICKETS BUT EVEN SOME OF THE LOSERS HAVEN'T DONE BADLY SAYS A GTE SPOKESMAN AT OUR COMPANY THE TEAM THAT DID THE WORST GOT A DAY OFF WORK TO PRACTICE THEIR GOLF GAMES 9304280107 930428 PREVENT NUCLEAR WAR INVADE YUGOSLAVIA BY EUGENE V ROSTOW THE DIRE IMPLICATIONS OF THE EXPANDING BALKAN WAR CAME OUT IN A STATEMENT RECENTLY MADE AT A CONFERENCE IN WASHINGTON BY PY FELGENHAUER A RUSSIAN MILITARY ANALYST MR FELGENHAUER REPORTED THAT RUSSIAN MILITARY EXPENDITURES WERE INCREASING AGAIN AFTER A YEAR OR TWO OF SLIGHT STABILITY OR DECLINE THE INCREASES WERE LARGELY IN THE NUCLEAR SECTOR HE THEN COMMENTED ON THE WAR BETWEEN ARMENIA AND AZERBAIJAN WITH RUSSIAN ADVISERS AND EQUIPMENT BEHIND THEM THE ARMENIANS WERE CLEARLY WINNING BUT TURKEY HAD RECENTLY MOVED TROOPS TO POSITIONS ALONG ITS BORDER WITH ARMENIA THE RUSSIANS WERE CONCERNED BECAUSE ARMENIA IS PROTECTED BY A SECURITY TREATY WITH RUSSIA THUS TURKISH INTERVENTION IN THE WAR WOULD PRESENT RUSSIA WITH WHAT HE CALLED A DIFFICULT DILEMMA SINCE MOST OF THE RUSSIAN ARMY IS NOT BATTLEREADY MR FELGENHAUER REMARKED SOME RUSSIAN OFFICERS WERE TALKING ABOUT THE POSSIBILITY OF USING NUCLEAR WEAPONS RATHER THAN FAIL TO UPHOLD A RUSSIAN SECURITY TREATY TURKEY IT IS HARDLY NECESSARY TO RECALL IS A MEMBER OF THE NORTH ATLANTIC TREATY ORGANIZATION AND THAT ORGANIZATION'S TREATY SAYS THAT AN ATTACK ON ONE IS AN ATTACK ON ALL MR FELGENHAUER'S STATEMENT APPLIES NOT ONLY TO THE CAUCASUS BUT TO THE BALKAN WAR AS WELL IT WAS A POLITE BUT UNMISTAKABLE WARNING ABOUT NOT LETTING THE WAR IN BOSNIA GO ON IF THE SERBS CONQUER BOSNIA AND THEN MOVE AGAINST KOSOVO AND MACEDONIA TURKEY MAY BE FORCED TO REACT SUCH A DEVELOPMENT WOULD BE EXTREMELY DIFFICULT FOR THE US OR NATO TO CONTROL IT WOULD CHALLENGE SEVERAL OF RUSSIA'S SECURITY TREATIES WITH ITS NEIGHBORS IF SOME RUSSIAN OFFICIALS ARE CONTEMPLATING THE ACTUAL USE OF NUCLEAR WEAPONS TO THE DEGREE MR FELGENHAUER IMPLIED THEN THRESHOLD STATES SUCH AS NORTH KOREA IRAQ PAKISTAN IRAN AND LIBYA WILL IN TURN REDOUBLE THEIR EFFORTS TO PREPARE FOR NUCLEAR WAR THAT WOULD MAKE THE PROBLEM OF NUCLEAR PROLIFERATION BY FAR THE MOST URGENT ITEM ON PRESIDENT CLINTON'S FOREIGNPOLICY CALENDAR NEARLY UNMANAGEABLE WORDS LIKE MR FELGENHAUER'S REVEAL THE ULTIMATE FOLLY OF PRESIDENT CLINTON'S REFUSALS TO USE GROUND FORCE IN THE FORMER YUGOSLAVIA OBSERVERS OF THE US ALREADY DETECT A NEW PATTERN IN AMERICAN FOREIGN POLICY GEORGE BUSH'S FAILURE TO INSIST ON A DECISIVE VICTORY IN THE GULF WAR BUSH AND CLINTON MISTAKES IN THE YUGOSLAV AFFAIR AND THE EXCESSIVE PACE OF REDUCTIONS IN THE AMERICAN MILITARY BUDGET HAVE ENCOURAGED GOVERNMENTS ALL OVER THE WORLD TO SUSPECT AND FEAR THAT THE US IS WITHDRAWING FROM THE TRUMAN POLICY OF AMERICAN LEADERSHIP IN HALTING AGGRESSION FOR OBSERVERS THE PRESIDENT'S BEHAVIOR RAISES THE QUESTION OF WHETHER HE IS PREPARED TO CARRY OUT MEASURES OF WHAT IS KNOWN AS COLLECTIVE SELFDEFENSE AGAINST AGGRESSION THAT IS THEY WONDER WHETHER THE PRESIDENT FEELS HE CANNOT PROCEED IN YUGOSLAVIA WITHOUT THE BLESSING OF THE UN SECURITY COUNCIL PRESIDENT BUSH OF COURSE HAD SECURITY COUNCIL SUPPORT FOR THE IRAQ INVASION BUT AS HE MADE CLEAR AT THE TIME HE DID NOT NEED IT PRESIDENT CLINTON BY CONTRAST APPEARS TO BE SPENDING SERIOUS ENERGY ON OBTAINING CONSENSUS IN A SECURITY COUNCIL THAT MAY SOON BE PARALYZED BY A RUSSIAN OR CHINESE VETO THE WORLD'S GROWING CONCERN ABOUT THE RELIABILITY OF AMERICAN GUARANTEES IS HAVING STARTLING CONSEQUENCES IT IS REPORTED FOR EXAMPLE THAT A NUMBER OF MODERATE STATES IN CENTRAL EUROPE INCLUDING BY SOME REPORTS POLAND ARE ATTEMPTING TO BUY NUCLEAR WEAPONS FROM UKRAINE OR UZBEKISTAN SO THAT IF WORSE CAME TO WORST THEY COULD START A WAR THE US WOULD HAVE TO FINISH WHY HAS IT TAKEN SO LONG FOR THE US AND ITS ALLIES TO REALIZE THAT THEY CANNOT SAFELY IGNORE SERBIA'S AGGRESSION PRESIDENT BUSH PROLONGED THE PROBLEM WHEN EARLY ON HE REMITTED THE ISSUE TO THE EUROPEAN COMMUNITY AND THE EUROPEAN SECURITY COUNCIL UP TO NOW NEITHER INSTITUTION APPEARS CAPABLE OF HANDLING IT THE EC HAS NO FORCES BEHIND IT IN SITUATIONS OF THIS KIND FREDERICK THE GREAT REMARKED DIPLOMACY WITHOUT FORCE BEHIND IT IS MUSIC WITHOUT INSTRUMENTS THE SECURITY COUNCIL IS USELESS BECAUSE BRITAIN FRANCE AND THE US CANNOT AGREE ON A YUGOSLAVIA POLICY THE RESULT IS THE CURRENT MACABRE SCENARIO IN YUGOSLAVIA THERE ARE DEEPER REASONS WHY US PRESIDENTS HAVE RECOILED FROM UNDERTAKING SERIOUS DIPLOMACY IN THIS CONFLICT THE FIRST IS A FALSE RECOLLECTION OF YUGOSLAV RESISTANCE TO GERMANY DURING WORLD WAR II ANALYSTS WORRY ABOUT WHAT THEY PERCEIVE AS ENDLESS DIFFICULTIES INVOLVED IN FIGHTING GUERRILLAS ON YUGOSLAVIA'S MOUNTAINOUS TERRAIN IN WORLD WAR II THOUGH GERMANY TOOK YUGOSLAVIA WITH LITTLE TROUBLE DURING ITS INITIAL INVASION ITS DIFFICULTIES WITH THE GUERRILLAS CAME LATER ANNOUNCING PLANS TO LIBERATE YUGOSLAVIA FROM SLOBODAN MILOSEVIC WOULD HELP THE MILITARY EFFORT THE SERBS ARE BY NO MEANS UNITED BEHIND MILOSEVIC'S POLICY OF XENOPHOBIA AND GENOCIDE MANY OBSERVERS ARE CONVINCED THAT FEW SERBS WOULD ACTUALLY FIRE ON THE FLAGS OF BRITAIN FRANCE AND THE US EVEN THOUGH SERBS HAVE RESISTED THE UN IN THE SERBS' EYES THE UN MAY BE IMPOTENT BUT NATO IS NOT THE SPECTER OF VIETNAM ALSO LOOMS IN MANY WESTERN MINDS IN FACT THOUGH THE IDEA THAT AN ALLIANCE THAT PREPARED FOR 45 YEARS TO FIGHT THE FORCES OF THE RED ARMY AT ITS PEAK COULD NOT COPE WITH THE ORGANIZED FORCES OF SERBIA IS HARDLY SERIOUS THE AMERICAN MILITARY LEADERSHIP HAS TAKEN TO HEART THE MAIN MILITARY LESSON OF OUR FAILURE IN VIETNAM WITHOUT RECALLING OUR SUCCESSES IN KOREA IF ONE SET OF MILITARY LEADERS FAILS REPLACE THEM WITH OFFICERS ENDOWED WITH THE INSIGHT AND SKILL OF GEN MATTHEW RIDGWAY WHO TURNED THE KOREAN WAR AROUND WITHIN WEEKS OF TAKING COMMAND CLEARLY HOWEVER THE POLITICAL LEADERSHIP OF BOTH PARTIES HAS FORGOTTEN THE MORAL OF GEN RIDGWAY'S BRILLIANT SUCCESS IN KOREA SOME 40 YEARS AGO PRESIDENT CLINTON IS A BIG ADVOCATE OF MULTILATERALISM BUT HIS FOCUS ON THE UN SECURITY COUNCIL IS A DANGEROUS ONE HE SHOULD REMEMBER THAT UNDER ARTICLE 51 OF THE UN CHARTER THE US AND NATO CAN EXERCISE THEIR INHERENT RIGHT OF COLLECTIVE SELFDEFENSE AGAINST SERBIAN AGGRESSION WITHOUT OBTAINING SECURITY COUNCIL APPROVAL RATHER THAN WORRYING ABOUT NEGOTIATIONS IN THE SECURITY COUNCIL PRESIDENT CLINTON SHOULD PROCEED MR ROSTOW FORMER UNDERSECRETARY OF STATE FOR POLITICAL AFFAIRS UNDER PRESIDENT NIXON IS AUTHOR OF A NEW BOOK TOWARD MANAGED PEACE YALE UNIVERSITY PRESS EUGENE ROSTOW SERVED LYNDON JOHNSON AS UNDERSECRETARY OF STATE THE TAGLINE ON WEDNESDAY FEATURE MISSTATED THIS INFORMATION 9304280106 930428 TREASURY PLANS OFFERING OF ABOUT 212 BILLION WASHINGTON THE TREASURY PLANS TO PAY DOWN 228 BILLION ON THE PUBLIC DEBT WITH THE SALE MONDAY OF ABOUT 212 BILLION IN SHORTTERM BILLS MATURING BILLS OUTSTANDING TOTAL 2346 BILLION THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING AUG 5 AND NOV 4 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794F25 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794G40 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EDT MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EDT 9304280105 930428 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB AS REPUBLICANS CHORTLE OVER THE DEFEATED ECONOMIC STIMULUS PACKAGE AND THE WHITE HOUSE STRAINS TO FIND A NEW AMERICAN POLICY ON BOSNIA THE CAPITAL'S COGNOSCENTI HAVE LOST SIGHT OF SOMETHING IMPORTANT ABOUT BILL CLINTON HE ALREADY HAS CHANGED WASHINGTON IN IMPORTANT WAYS WHATEVER HIS CURRENT PROBLEMS MR CLINTON HAS IN FACT HELPED PRODUCE SOME SIGNIFICANT CHANGES IN ATTITUDE OVER THE LAST FOUR MONTHS SOME OF WHICH ARE SO THOROUGH THAT THEY'RE ALREADY TAKEN FOR GRANTED CONSIDER SWEEPING HEALTHCARE REFORM WILL HAPPEN THAT IS A RADICAL CHANGE FROM JUST TWO YEARS AGO WHEN THE BUSH ADMINISTRATION WAS DODGING THE ISSUE NOW EVEN REPUBLICANS ARE DRAWING UP AN ALTERNATE TO THE COMING CLINTON PLAN THE REFORM PROMISES TO BE THE MOST FARREACHING SINCE THE GREAT SOCIETY YET LAWMAKERS WONDER ONLY WHETHER IT WILL HAPPEN THIS YEAR OR NEXT DEFICIT REDUCTION HAS BECOME A PASSION AMONG DEMOCRATS THE DEBATE WITHIN THE PARTY OVER THE CLINTON ECONOMIC PROGRAM HAS TURNED LARGELY ON HOW TO CUT SPENDING MORE WHICH IS A REMARKABLE ROLE REVERSAL ROSS PEROT HAS MUCH TO DO WITH THAT BUT SO DOES PRESIDENT CLINTON WHOSE POSTELECTION EVANGELIZING ON THE DEFICIT CHANGED THE TONE WITHIN HIS PARTY JUST YESTERDAY MR CLINTON DWELLED EXTENSIVELY ON THE DEFICIT IN A LONG SPEECH IN WHICH HE DECLARED I AM APPALLED AT THIS DEFICIT INDUSTRIAL POLICY HAS ARRIVED THE VERY WORDS WERE BANNED FROM THE BUSH AND REAGAN ADMINISTRATIONS NOW VICE PRESIDENT AL GORE MEETS WITH TELEPHONE COMPANY EXECUTIVES TO DISCUSS COOPERATING ON A NEW INFORMATION SUPERHIGHWAY ADMINISTRATION AIDES TALK TO AUTOMAKERS ABOUT WORKING TOGETHER ON ELECTRIC CARS NOBODY BLINKS AN EYE AMERICANS ARE TUNED IN TO THEIR GOVERNMENT AGAIN SOMEHOW MR CLINTON HAS MADE THE EXECUTIVE BRANCH SEEM ACCESSIBLE WHITE HOUSE AIDES ESTIMATE THAT MAIL IS COMING IN AT TRIPLE ITS OLD RATE PHONE CALLS COME IN AT A CLIP OF 65000 TO 70000 A DAY SO MANY THAT A NEW SWITCHBOARD IS NEEDED BEYOND THAT MR CLINTON ALSO BROUGHT AN OBVIOUS BUT DRAMATIC GENERATIONAL CHANGE TO THE WHITE HOUSE THAT MEANS DISENCHANTED TWENTYSOMETHING AND THIRTYSOMETHING AMERICANS IDENTIFY MORE WITH THEIR LEADERS AN ASSET THAT MR CLINTON HASN'T USED NEARLY AS WELL AS HE MIGHT WHEN KELLY COLEMAN A 27YEAROLD CONNECTICUT MOTHER AND INSURANCECOMPANY EMPLOYEE WAS ASKED ABOUT MR CLINTON DURING A WALL STREET JOURNAL FOCUS GROUP DISCUSSION LAST WEEK SHE HAD LITTLE POSITIVE TO SAY EXCEPT THIS THE ONLY GOOD THING I CAN SEE ABOUT WHAT CLINTON'S DOING RIGHT NOW THAT'S DIFFERENT THAT REALLY STICKS OUT IN MY MIND IS THE GENERATIONAL ISSUE NONE OF THIS MEANS MR CLINTON HAS SUCCEEDED IN CHANGING WASHINGTON AS MUCH AS HE PROMISED HIS OWN FRUSTRATION SURFACED NOT LONG AGO WHEN HE WAS WRESTLING AGAIN WITH THE TASK OF FILLING TOP ADMINISTRATION JOBS HE WALKED INTO THE OFFICE OF A TOP AIDE AND DECLARED THAT HE WANTED TO SEE RESUMES FROM PEOPLE IN PLACES LIKE OHIO OR ILLINOIS NOT FROM PREDICTABLE ESTABLISHMENT TYPES BUT WHATEVER THE PACE OF CHANGE THINGS ARE DIFFERENT ASK JANE HARMAN SHE'S A FRESHMAN CONGRESSWOMAN FROM CALIFORNIA ELECTED ALONG WITH MR CLINTON SHE HAS ALSO SEEN WASHINGTON UP CLOSE BEFORE AS A TOP AIDE IN THE CARTER WHITE HOUSE THOUGH IT'S FAR FROM CLEAR WHAT THE PRECISE RESULTS WILL BE REP HARMAN SEES A SUBTLE CHANGE IN THE NATURE OF THE DEBATE ON MANY ISSUES IT'S NOT WHETHER TO DO THINGS IT'S HOW TO DO THEM SHE SAYS CONSIDER THE SCENE EARLIER THIS MONTH IN REP HARMAN'S HOME DISTRICT IN LOS ANGELES WHERE SHE ATTENDED A MEETING WITH SOME 1500 DEFENSEINDUSTRY EXECUTIVES THEY GATHERED TO LEARN HOW TO TAP INTO 472 MILLION IN MATCHING GRANTS THE GOVERNMENT WILL DISPERSE THIS YEAR TO HELP DEFENSE INDUSTRIES CONVERT TO CIVILIAN WORK THE PROGRAM WAS CREATED EARLIER BUT NOW THE MONEY IS STARTING TO FLOW BUT THE MOST FUNDAMENTAL CHANGE IS IN DEMOCRATS' ATTITUDE TOWARD THE DEFICIT REP HARMAN IS ONE OF A GROUP OF DEMOCRATS IN THE HOUSE WHO HAVE PROPOSED WHAT ONCE WAS A REPUBLICAN IDEA THEY SUGGEST PUTTING ALL REVENUES COLLECTED FROM THE CLINTON ECONOMIC PROGRAM INTO A TRUST FUND THAT COULD BE USED ONLY TO PAY DOWN THE DEFICIT ANY NEW PROGRAMS WOULD HAVE TO BE PAID FOR OUT OF SPENDING CUTS AS HIS POLITICAL MENTOR JAMES CARVILLE IS FOND OF REPEATING MR CLINTON WILL SUCCEED SO LONG AS HE IS SEEN AS AN AGENT OF CHANGE IN WASHINGTON WHEN MR CLINTON AND MR GORE MET WITH FRESHMAN LAWMAKERS IN THE CAPITOL'S RAYBURN ROOM EARLY ON MR GORE DECLARED THAT THE CLINTON/GORE TEAM HAD MORE IN COMMON WITH THE NEW LAWMAKERS THAN THE ESTABLISHED LEADERS OF CONGRESS BOTH THE NEW ADMINISTRATION AND THE NEW LEGISLATORS WERE ELECTED TO CHANGE WASHINGTON IT'S A REFRAIN WORTH REPEATING IN MR CLINTON'S HOURS OF TROUBLE 9304280104 930428 CENTERCORE TO BUY JWP UNIT WAYNE PA CENTERCORE INC A DESIGNER AND MAKER OF OFFICE FURNISHINGS AND AIR FILTRATION SYSTEMS SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE MARIS EQUIPMENT CO A SUBSIDIARY OF JWP INC TERMS WEREN'T DISCLOSED MARIS A PROVIDER OF INTEGRATED ELECTRONIC SYSTEMS PARTICULARLY TO THE US FEDERAL BUREAU OF PRISONS POSTED 1992 SALES OF 45 MILLION JWP IS A TECHNICAL SERVICES CONCERN 9304280103 930428 DE BEERS CENTENARY DIAMOND SALES GREW IN 1ST PERIOD BY NEIL BEHRMANN SPECIAL TO THE WALL STREET JOURNAL LONDON DIAMOND SALES OF DE BEERS CENTENARY AG SURGED IN THE FIRST QUARTER OF THE YEAR AND THE COMPANY PLANS TO MARGINALLY INCREASE ITS PURCHASES FROM PRODUCERS SAID JULIAN OGILVIE THOMPSON COMPANY CHAIRMAN MR OGILVIE THOMPSON REFUSED TO DISCLOSE FIGURES BUT DEALERS ESTIMATE THAT AROUND 125 BILLION IN DIAMONDS WERE SOLD BY THE SWISSBASED DE BEERS IN THE QUARTER DEALERS SAID THE THREE BIG SALES BY DE BEERS IN THE PERIOD BROUGHT AN AVERAGE OF MORE THAN 400 MILLION COMPARED WITH AN AVERAGE OF ABOUT 340 MILLION A YEAR AGO DE BEERS WHICH CONTROLS ABOUT 75 OF THE ROUGH UNCUT DIAMOND MARKET THROUGH A PRODUCER CARTEL HAS 10 SALES ANNUALLY DIAMOND MANUFACTURERS CAUTION HOWEVER THAT NEXT WEEK'S SCHEDULED SALE IS LIKELY TO PRODUCE FAR LOWER REVENUE DEALERS ARE VERY WORRIED BECAUSE THEY HAVE ALREADY ABSORBED A LOT OF STOCK SAID ONE MANUFACTURER HE SAID DEALERS ARE WORRIED THAT THE MARKET IS RECOVERING SLOWLY AND ALSO ARE CONCERNED THAT DE BEERS' DIAMOND STOCKPILE SOARED TO 38 BILLION AT YEAR'S END COMPARED WITH 2 BILLION FIVE YEARS AGO BUT MR OGILVIE THOMPSON SAID DE BEERS WILL ADJUST ITS SALES PROGRAM IN COMING MONTHS PARTLY BECAUSE THE US DEFENSE DEPARTMENT IN JUNE WILL SELL TWO MILLION CARATS OF QUALITY DIAMONDS VALUED AT AN ESTIMATED 50 MILLION TO 100 MILLION FROM ITS STRATEGIC STOCKPILE THAT WILL BE FOLLOWED BY A ONEMILLION CARAT AUCTION IN SEPTEMBER DEALERS SAY FIVE CARATS WEIGH ONE GRAM DE BEERS IS SUFFICIENTLY CONFIDENT TO INCREASE ITS PURCHASES FROM PRODUCERS TO 80 OF ANNUAL OUTPUT FROM 75 IN SEPTEMBER DE BEERS REDUCED PURCHASES FROM MAJOR PRODUCERS SUCH AS BOTSWANA AND AUSTRALIA BY A QUARTER OF ANNUAL OUTPUT THE MOVE HELPED SUPPORT THE MARKET THE COMPANY SAYS MR OGILVIE THOMPSON SAID THE VERY GOOD FIRSTQUARTER SALES WERE THE RESULT OF LOWER SUPPLIES FROM RUSSIA AND ANGOLA THERE WAS ALSO AN IMPROVEMENT IN DIAMOND SALES TO THE US AND INDIAN DEALERS BUT BUSINESS REMAINS SLACK IN EUROPE AND JAPAN HE SAID DE BEERS ESTIMATES THAT RETAIL DIAMOND JEWELRY LAST YEAR WAS 16 MILLION CARATS VALUED AT 39 BILLION UNCHANGED FROM THE PREVIOUS TWO YEARS 9304280102 930428 MARKETING & MEDIA ADVERTISING NBC HAS TO DECIDE ON NEW ADS SHOWING LETTERMAN'S SUCCESSOR BY KEVIN GOLDMAN THESE DAYS WHEN NBC PROMOTES LATE NIGHT WITH DAVID LETTERMAN ONE CRUCIAL ELEMENT IS MISSING FROM THE ONAIR SPOTS DAVID LETTERMAN WHO IS DEFECTING FROM THE NETWORK IN JUNE TO JOIN RIVAL CBS TWO MONTHS LATER NBC'S SPOTS FORGO SHOWING MR LETTERMAN'S GAPTOOTHED MUG AND DON'T EVEN MENTION HIM BY NAME INSTEAD PLUGGING GUESTS ON LATE NIGHT AS IT NOW IS CALLED AND HYPING JAY LENO THE HOST OF THE TONIGHT SHOW BUT VERY SHORTLY NBC MUST DECIDE HOW NEW ADS SHOULD FOCUS ON THE LETTERMAN SUCCESSOR IT PICKED THIS WEEK COMIC UNKNOWN CONAN O'BRIEN THE NETWORK WILL PRESENT THE 30YEAROLD MR O'BRIEN TO THE ANNUAL GATHERING OF AFFILIATE STATION EXECUTIVES NEXT MONTH IT MUST DO SO AS CBS GEARS UP A HUGE EFFORT FOR MR LETTERMAN UNVEILING ITS PROMOTIONAL CAMPAIGN TO ITS OWN LOCAL STATIONS IN MIDMAY MADISON AVENUE ALONG WITH THE REST OF THE US AWAKENED WITH A COLLECTIVE HUH WHEN CONFRONTED YESTERDAY WITH THE NEWS THAT NBC WAS REPLACING ONE OF THE BESTKNOWN HOSTS IN TELEVISION WITH A ROOKIE ADVERTISING EXECUTIVES SAY NBC IS TAKING A SIZABLE RISK ON AN UNTESTED COMIC IN SUCH A HIGHPROFILE POSITION AT STAKE IS THE 70 MILLION THAT LATE NIGHT RECEIVES ANNUALLY IN AD REVENUES ONE IMMEDIATE CONSEQUENCE MAY BE HOW MUCH NBC WILL BE ABLE TO CHARGE FOR ADS ADVERTISERS PREDICT THAT THE GENERAL ELECTRIC CO UNIT MAY SOON HAVE TO RENEGOTIATE READ DECREASE PRICES WITH SPONSORS THAT HAD COMMITTED TO LATE NIGHT WHEN MR LETTERMAN WAS IN THE CHAIR CURRENTLY THE FIRST HALFHOUR OF LATE NIGHT COMMANDS 17500 FOR A HALFMINUTE SPOT AND THE SECOND HALF GETS ABOUT 13800 ACCORDING TO AC NIELSEN IN COMPARISON CBS'S LATENIGHT MIX OF ACTION AND SEXUALLY TITILLATING ADVENTURE CHARGES 11400 CAPITAL CITIES/ABC'S NETWORK GOES OFF THE AIR AT MIDNIGHT ADVERTISERS MAY SIT ON THE FENCE FOR A WHILE TO SEE HOW THIS GUY DOES SAYS BOB SILBERBERG EXECUTIVE VICE PRESIDENT OF NATIONAL BROADCAST AT SAATCHI & SAATCHI'S BACKER SPIELVOGEL BATES ALL THE PUBLICITY THAT NBC CAN MUSTER DOESN'T IMPRESS PAUL SCHULMAN WHOSE MEDIABUYING FIRM BUYS TV TIME FOR SUCH LATENIGHT SPONSORS AS RALSTONPURINA MOST OF MY CLIENTS ARE FROM MISSOURI WHICH IS THE SHOW ME' STATE MR SCHULMAN SAYS MR O'BRIEN'S SHOW IS EXPECTED TO BE A MIX OF TALK AND COMEDY SKETCHES AND AT THE OUTSET WE'LL BE ON THE SIDELINE WE'D LIKE TO SEE SOMETHING BEFORE WE JUMP ON THE CONAN O'BRIEN BANDWAGON MR SCHULMAN SAYS BUT PERHAPS THE MOST CANDID RESPONSE COMES FROM JON MANDEL SENIOR VICE PRESIDENT AT GREY ADVERTISING IF THE PRICE IS RIGHT WE'LL BE IN IT PRICING IS ALMOST EVERYTHING IN ADVERTISING AFTER ALL CBS FOR INSTANCE IS READY TO DOUBLE ITS AD RATES TO 30000 FOR A 30SECOND COMMERCIAL ON THE NEW LETTERMAN SHOW ACCORDING TO A SENIOR NETWORK EXECUTIVE ONCE MR LETTERMAN BEGINS SAYING MY OH MY AND OPENING UP VIEWER MAIL ADDRESSED TO HIS NEW CBS HOME BUT MR MANDEL SAYS THE LATENIGHT ARENA IS SATURATED AT A TIME WHEN ADVERTISERS AREN'T INCREASING THEIR BUDGETS FOR THE TIME PERIOD OTHER NEW TALK SHOWS ARE COMING INCLUDING ONE STARRING CHEVY CHASE FOR NEWS CORP'S FOX BROADCASTING AND A CBS LATENIGHT VARIETY SHOW TO FOLLOW MR LETTERMAN'S GIG THEY JOIN THE LATENIGHT LIKES OF MR LENO AND ARSENIO HALL DESPITE THE PREDICTABLE SKEPTICISM FROM MADISON AVENUE HOWEVER MR O'BRIEN MAY PROVE TO BE AN INSPIRED CHOICE MR LETTERMAN AT 46 IS GETTING A LITTLE LONG IN THE GAP TOOTH AFTER ALL HIS RATINGS HAVE BEEN SLIPPING PARTICULARLY IN THE CRITICAL 18TO49YEAROLD CATEGORY SO FAR THIS TV SEASON MR LETTERMAN'S SHARE OF WOMEN VIEWERS AGED 18 TO 49 IS DOWN 13 FROM A YEAR AGO AND HIS SHARE OF MALE VIEWERS IN THE SAME AGE GROUP IS DOWN 6 MR O'BRIEN MAY BE UNKNOWN TO THE VIEWING PUBLIC AT LARGE BUT HE'S WELL KNOWN IN SOME QUARTERS OF THE COMEDY AND TV INDUSTRY HE'S DESCRIBED BY PAST ASSOCIATES AS A SELFEFFACING LOWKEY FASTTHINKING AND GENUINELY FUNNY INDIVIDUAL TRAITS THAT NBC NO DOUBT WILL KEEP IN MIND WHEN IT DECIDES HOW TO PROMOTE CONAN THE SHOW HOST HE WROTE AN EPISODE OF THE SIMPSONS THAT FEATURED HOMER THE BEFUDDLED DAD AS THE ENGINEER OF A MONORAIL IT'S CONSIDERED ONE OF THE FUNNIEST OF THE YEAR SAYS MIKE REISS THE ANIMATED SHOW'S EXECUTIVE PRODUCER MR REISS RECRUITED MR O'BRIEN TWO YEARS AGO AFTER THE COMEDIAN'S STINTS AS A WRITER ON NBC'S SATURDAY NIGHT LIVE AND HOME BOX OFFICE'S NOT NECESSARILY THE NEWS MR O'BRIEN DISPLAYED AN EARLY STRENGTH FOR HUMOR AT HARVARD COLLEGE WHERE HE WAS NAMED PRESIDENT OF THE HARVARD LAMPOON AS A SOPHOMORE AND KEPT THE POSITION FOR TWO YEARS AN UNCOMMON ACCOMPLISHMENT IN 1985 HIS SENIOR YEAR MR O'BRIEN SAID IN AN INTERVIEW WITH THE COLLEGE PAPER THAT ONE DAY HE WOULD LIKE TO BE WRITING AND PERFORMING A PERFECT WORLD IS WHERE THE CONAN O'BRIEN SHOW' WOULD BE ON AND YOU'D BE READING MY SHORT STORIES SOMEWHERE AND WEARING MY DESIGNER JEANS CALLS TO HIS LOS ANGELES HOME WENT UNANSWERED AND NBC SAID HE WOULDN'T BE AVAILABLE FOR COMMENT UNTIL NEXT MONDAY NEW AMSTERDAM BEER CO IS LAUNCHING ITS FIRST NATIONWIDE AD CAMPAIGN TODAY CREATED BY NEW YORK AGENCY GRYBAUSKAS BEATRICE NEW 60SECOND RADIO SPOTS PREMIERING IN 38 MARKETS TARGET PREMIUM BEER DRINKERS WITH THE LINE DON'T SETTLE FOR A GREAT BEER NEW AMSTERDAM EXCEPTIONAL THE NEW YORK MICROBREWERY IS SPENDING 17 MILLION ON THE CAMPAIGN WHICH RUNS THROUGH THE REST OF THE YEAR AND INCLUDES ITS FIRST PRINT EFFORT THE NEW UNDERTAKING IS NEARLY DOUBLE THE PREVIOUS CAMPAIGN WHICH RAN ONLY ON RADIO IN THE NORTHEAST SAID JOSEPH TIGHE NEW AMSTERDAM'S PRESIDENT NEW AMSTERDAM HAS EXPANDED FROM AN INITIAL HANDFUL OF MARKETS TO 38 IN THE PAST 10 MONTHS THE NEW ADS ARE THE FIRST SPOTS PRODUCED BY GRYBAUSKAS BEATRICE WHICH LANDED THE SMALL ACCOUNT IN A REVIEW THAT PITTED IT AGAINST INCUMBENT FRANKFURT GIPPS BALKIND INTERPUBLIC GROUP OF COS SAID THAT IT REVERSED ITS LOSS IN LAST YEAR'S FIRST QUARTER WHEN RESULTS INCLUDED MAJOR ACCOUNTING CHANGES AND THAT OPERATING INCOME ROSE 14 THE COMPANY REPORTED NET INCOME OF 105 MILLION OR 14 CENTS A SHARE INCLUDING A 512000 CHARGE FOR AN ACCOUNTING CHANGE A YEAR EARLIER IT HAD A NET LOSS OF 15 MILLION OR 20 CENTS A SHARE INCLUDING A 246 MILLION CHARGE FOR ACCOUNTING CHANGES PERSHARE FIGURES REFLECT A TWOFORONE STOCK SPLIT LAST JUNE GROSS INCOME FELL 27 TO 3898 MILLION FROM 4007 MILLION THE COMPANY WHICH OWNS AD AGENCIES MCCANNERICKSON LINTASWORLDWIDE AND LOWE & PARTNERS SAID THE STRENGTHENING OF THE DOLLAR REDUCED GROSS INCOME BY 18 MILLION AND NOTED THAT YEAREARLIER FIGURES INCLUDED CLIENT SPENDING TIED TO THE 1992 OLYMPICS WITHOUT THOSE ITEMS GROSS INCOME WOULD HAVE RISEN 3 INTERPUBLIC SAID ITS AD AGENCIES HAD 2667 MILLION OF NEW BUSINESS IN THE FIRST QUARTER SLIGHTLY AHEAD OF THE 1992 LEVEL NICKELODEON THE KID'S CABLE NETWORK OWNED BY VIACOM INTERNATIONAL INC WILL LAUNCH ITS OWN MAGAZINE IN JUNE AND IT HAS HIRED AWAY A WALT DISNEY CO PUBLISHER LYNN LEHMKUHL WHO HAD BEEN PUBLISHER OF DISNEY ADVENTURES MAGAZINE WILL HOLD THE SAME POST AT NICKELODEON MAGAZINE MS LEHMKUHL KNOWS SOMETHING ABOUT STARTING UP A KIDS' MAGAZINE BECAUSE SHE WAS ASSOCIATE PUBLISHER OF DISNEY ADVENTURES AT ITS LAUNCH IN 1990 SHE BECAME PUBLISHER A YEAR LATER HER SUCCESSOR AT DISNEY WASN'T IMMEDIATELY NAMED NICKELODEON IS JOINING A GROWING LIST OF MAGAZINES FOR PRETEENAGE READERS THE CHILDREN'S HUMOR MAGAZINE IS EXPECTED TO PUBLISH THREE ISSUES THIS YEAR AND EVERY OTHER MONTH NEXT YEAR CIRCULATION FOR THE MAGAZINE WILL BE HANDLED BY NEW YORK TIMES CO'S WOMEN'S MAGAZINES GROUP CIRCULATION IS EXPECTED TO BE ABOUT 150000 THROUGH SUBSCRIPTION AND NEWSSTAND SALES MAGAZINE INSIDERS WHO HAVE SEEN PROTOTYPE VERSIONS OF NICKELODEON MAGAZINE SAY IT'S UNLIKE ANY OTHER MAGAZINE FOR KIDS ON THE MARKET EMPLOYING AN INYOURFACE EDITORIAL APPROACH AND BOLD EYECATCHING GRAPHICS 9304280101 930428 FIRSTAR DROPS PURCHASE PLAN MILWAUKEE FIRSTAR CORP SAID IT HAS WITHDRAWN FROM A NOVEMBER AGREEMENT TO BUY A CLOSELY HELD WATERLOO IOWA BANK THROUGH A STOCK SWAP ORIGINALLY VALUED AT ABOUT 54 MILLION FIRSTAR SAID IT DROPPED THE PLAN TO ACQUIRE WATERLOO SAVINGS BANK BECAUSE OF CONCERN BY REGULATORS ABOUT HOW THE ACQUISITION WOULD INCREASE FIRSTAR'S SHARE OF THE BANKING MARKET IN THE WATERLOO METROPOLITAN AREA FIRSTAR ALREADY OWNS A BANK IN NEIGHBORING CEDAR FALLS WATERLOO SAVINGS BANK IS OWNED BY CLOSELY HELD METRO BANCORP 9304280100 930421 BONFIRE OF THE VANITIES BY CHARLES J SYKES ONE OF THE MORE MEMORABLE IMAGES OF LAW ENFORCEMENT TO PENETRATE THE NATIONAL CONSCIOUSNESS LATELY WAS THAT OF THE CHARACTER PLAYED BY JODIE FOSTER IN THE SILENCE OF THE LAMBS IN THAT FILM THE ACTRESS PLAYED AN FBI AGENT WHO DOES MORE THAN CATCH THE VILLAIN SHE MATCHES WITS WITH EVIL BY GETTING INSIDE THE DEMONIC MIND OF DR HANNIBAL LECTER WHILE LOCAL OFFICIALS FROM SMALL TOWNS ARE CLUELESS THE BRILLIANT AGENT STARLING FROM WASHINGTON FATHOMS THE UNFATHOMABLE AND JUSTICE TRIUMPHS SO MUCH FOR THE FANTASY WACO HAS SHOWN US THE REALITY DESPITE THE DEPLOYMENT OF HUNDREDS OF AGENT STARLINGS AND THE MOBILIZATION OF HOSTS OF EXPERTS THE STANDOFF WITH THE BRANCH DAVIDIANS WAS BUNGLED AT THE BEGINNING AND BUNGLED AT THE END THE ULTIMATE RESPONSIBILITY FOR THE DEATH OF THE 80ODD CULT MEMBERS RESTS SOLELY WITH DAVID KORESH BUT THE TRAGEDY IS A TROUBLING COMMENTARY ON OUR MISGUIDED AND DESTRUCTIVE NATIONAL FAITH IN THE EXPERTISE OF THE EXPERT CLASS AMERICANS HAVE ALWAYS FOUND SOMETHING IRRESISTIBLE IN EXPERTISE WITH ITS PROMISE OF INSIGHT ITS LURE OF EFFICIENCY ITS SCIENTIFIC RIGOR IN AN ERA OF SPECIALIZATION AMERICANS HAVE PLACED SPECIAL FAITH IN EXPERTS CLAIMING INSIGHT INTO ISSUES RANGING FROM HEALTH CARE TO TOILET TRAINING BUT WACO MAY HAVE BEEN THE APOTHEOSIS OF THE CULT OF EXPERTISE FROM THE MOMENT WHEN AGENTS OF THE BUREAU OF ALCOHOL TOBACCO AND FIREARMS LAUNCHED THEIR ILLFATED ATTACK ON KORESH'S COMPOUND IN FEBRUARY WACO WAS A STORY DOMINATED BY SPECIALISTS CULT EXPERTS PSYCHIATRISTS AND ASSORTED SAVANTS THROUGHOUT THE STANDOFF THE FEDERAL GOVERNMENT RELIED ON ITS SPECIALLY TRAINED HOSTAGE NEGOTIATORS TO ENGAGE IN A TORTURED AND PROTRACTED EFFORT TO MATCH WITS WITH THE CULT LEADER THIS TEAM'S CONDITION SEEMS TO HAVE BEEN ONE OF THE KEY FACTORS PRECIPITATING THE DISASTROUS ASSAULT ON THE COMPOUND ONE OF THE SIGNIFICANT FACTS ABOUT THE RESCUE OPERATION OUTSIDE THAT COMPOUND IS THAT AFTER MORE THAN FIVE WEEKS THE TEAMS OF SPECIALISTS WORKING THERE GOT TIRED NEVERTHELESS THEY WERE VIEWED AND APPARENTLY VIEWED THEMSELVES AS IRREPLACEABLE BECAUSE OF THEIR EXPERTISE THEIR EXPERTS' HUBRIS WAS FATAL FOR THE CHILDREN KORESH HELD HOSTAGE IT PROVIDED THEM AND DOUBTLESS THEIR SUPERIORS RIGHT UP TO ATTORNEY GENERAL JANET RENO WITH A SENSE OF FALSE CONFIDENCE NOWHERE IS THE NATION'S AND THE NEW ADMINISTRATION'S TENDENCY TO RELY ON EXPERTS CLEARER THAN IN THE ATTORNEY GENERAL'S MONDAY AFTERNOON NEWS CONFERENCE FOLLOWING THE WACO FIRE ASKED WHY SHE DECIDED TO MAKE THE MOVE ON THE COMPOUND MONDAY TO GET THE PEOPLE OUT SHE REPLIED THAT SHE MADE THE JUDGMENTS BASED ON THE FACT THAT EXPERTS TOLD US THAT THE HOSTAGE RESCUE TEAM SHOULD NOT AND COULD NOT REMAIN IN PLACE FOR ANY PERMANENT PERIOD OF TIME WITHOUT BEING RELIEVED THAT IS THE DECISIVE FACTOR WAS THE STATE OF THE EXPERTS NOT THAT OF THE PEOPLE INSIDE ASKED WHETHER SHE HAD THOUGHT ABOUT THE POSSIBILITY OF MASS SUICIDE MS RENO SAID SHE THOUGHT IT WOULD BE HARD TO PREVENT AND THAT OUR EXPERTS AND WE TALKED TO THE EXPERTS IN THE FIELD SAID THAT THEY WERE TOTALLY FRUSTRATED AND THAT THEY HAD NOT BEEN ABLE TO NEGOTIATE ANYTHING WITH KORESH ANOTHER EXAMPLE OF FOCUS ON THE EXPERTS MOMENTS LATER WHEN A REPORTER ASKED THE ATTORNEY GENERAL ABOUT A BACKUP TEAM FOR THE EXPERTS SHE MENTIONED EXPERTS YET AGAIN THE EXPERTS ADVISED US AND I TALKED WITH THEM MS RENO SEEMED TO TAKE COMFORT IN AND MAKE A DEFENSE OF THE FACT THAT SHE HAD CONSULTED WHAT SHE VIEWED TO BE TRUE AUTHORITIES UNFORTUNATELY SHE WAS RELYING ON EXPERTS WHO HAD RUN OUT OF IDEAS THEIR FRUSTRATION MAY HAVE BEEN THE ANNOYANCE OF PEOPLE CERTAIN OF THE EFFICACY OF THEIR EXPERTISE WHO ARE CONFRONTED WITH A REALITY THAT WOULDN'T BUDGE RATHER THAN ADMIT THE LIMITS OF THEIR KNOWLEDGE THEY GAVE INTO THE HUBRIS OF IMAGINING THEY KNEW MORE THAN THEY DID NOTABLY ABSENT FROM ALL OF THIS WERE THE VIEWS OF ORDINARY COPS MS RENO DIDN'T MENTION THE WACO POLICE IN HER PRESS CONFERENCE THEY HAD LONG AGO BEEN SHUT OUT OF THE ACTION HERE IN MILWAUKEE MY HOMETOWN THE POLICE I SPOKE WITH WERE BAFFLED AT THE EXPERTS' DECISIONS IN WACO A SITUATION WITH 25 CHILDREN NO COPS WITHOUT PHDS WOULD HAVE DONE ANYTHING TO PUT THOSE LIVES AT RISK THEY WOULD HAVE BACKED OFF THEY TOLD ME WAITED RATHER THAN CHARGED IN IN FACT THE WACO STORY RAISES SOME LARGER QUESTIONS ABOUT AMERICANS' AND PARTICULARLY THE CLINTON ADMINISTRATION'S FAITH IN EXPERTISE NOT SINCE JOHN KENNEDY HAS A PRESIDENT ENLISTED SO MANY EXPERTS FROM THE ACADEMY TO HELP HIM RUN HIS GOVERNMENT MR CLINTON'S RHODES SCHOLAR BUDDIES ARE THE MODERN VERSION OF THE BEST AND THE BRIGHTEST OF THE KENNEDY ERA YET THE WACO FIASCO HAS SHOWN THE LIMITS OF THOSE EXPERTS' ABILITIES IN AN ODD SENSE THE GHOST OF ROBERT MCNAMARA AND THE MEMORY OF HIS ERRORS SEEM TO HOVER OVER THE WACO STORY MR MCNAMARA AFTER ALL WAS THE STEWARD OF ANOTHER HALFBAKED RESCUE MISSION WHERE EXPERTS CALLED ALL THE SHOTS VIETNAM WACO SHOWED US THAT DESPITE SERIOUS INTELLECTUAL FIREPOWER EVEN THE FIREPOWER OF RHODES SCHOLARS EXPERTS CAN GET THINGS TERRIBLY TERRIBLY WRONG YESTERDAY EXPERTS ON TOPICS RANGING FROM FIREARMS TO CULTS FILLED THE AIRWAVES ANNOUNCING THAT THE WACO ARMAGEDDON HAD BEEN INEVITABLE OR THAT THEY HAD SEEN IT COMING THESE EXPERTS OF COURSE WERE DIFFERENT FROM THE WACO EXPERTS WHO ARE NOW SILENT IN THE FACE OF THEIR OWN WORK THIS IS TYPICAL OF WHAT SOME SOCIOLOGISTS HAVE CALLED THE KNOWLEDGE ELITE THROUGHOUT HISTORY WESTERN INTELLECTUALS HAVE BEEN PART OF THAT ELITE AND THROUGHOUT HISTORY THEY HAVE BEEN WRONG ON THE ISSUES EVA ETZIONEHALEVY A SOCIOLOGIST BUT ALSO AN ASTUTE CRITIC OF SUCH PROBLEMS WROTE IN THE 1980S OF WESTERN INTELLECTUAL PROPHETS WHO FAILED SUCH INTELLECTUALS SHE WROTE ALSO NEVER UNDER ANY CIRCUMSTANCES ADMIT THEIR STUNNED HELPLESSNESS IN THE FACE OF CRISIS SUCH TERMS ALSO WORK TO DESCRIBE MS RENO'S EXPERT TEAMS WHAT LESSONS CAN WE LEARN FROM WACO ONE IS THE VALUE OF HUMILITY WE SHOULD NOT PRESUME THAT OUR KNOWLEDGE IS GREATER THAN IT IS WHEN WE ARE FACED WITH EVIL THE OTHER IS SKEPTICISM WHATEVER THE ISSUE POVERTY EDUCATION HEALTH REFORM WE SHOULD BE WARY OF THOSE WHO CLAIM TO POSSESS THE KEYS FOR UNLOCKING THE COMPLEXITY OF SOCIAL PROBLEMS AND THE MYSTERY OF HUMAN EXPERIENCE MR SYKES IS AUTHOR OF A NATION OF VICTIMS THE DECAY OF AMERICAN CHARACTER ST MARTIN'S PRESS SEE RELATED LETTERS LETTERS TO THE EDITOR THE SLEEP OF REASON WSJ 4/28/93 9304210130 9304280099 930428 MARKETING & MEDIA TELECOMMUNICATIONS PLANS TO PURCHASE 15 INTEREST IN INTERACTIVE NETWORK INC BY MARK ROBICHAUX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TELECOMMUNICATIONS INC TOOK ANOTHER STEP INTO THE INTERACTIVE FUTURE SAYING IT WOULD INVEST 10 MILLION FOR A 15 STAKE IN FLEDGLING INTERACTIVE NETWORK INC THE INVESTMENT BY THE NATION'S LARGEST CABLE TELEVISION OPERATOR COULD SIGNIFICANTLY IMPROVE THE CHANCES THAT INTERACTIVE NETWORK DESPITE A SPOTTY TRACK RECORD COULD JOIN THE FOREFRONT OF A BEVY OF COMPANIES NOW RACING TO BRING INTERACTIVE SERVICES TO MARKET IT COMES JUST DAYS AFTER TELECOMMUNICATIONS UNVEILED A 2 BILLION PLAN TO ROLL OUT HIGHCAPACITY DIGITAL FIBER TO ACCELERATE VARIOUS INTERACTIVE SERVICES IN ITS MAJOR CABLE SYSTEMS IN NATIONAL OVERTHECOUNTER TRADING INTERACTIVE NETWORK SHARES JUMPED 225 OR 31 TO 950 TELECOMMUNICATIONS SERIES A STOCK ROSE 625 CENTS TO 19375 INTERACTIVE NETWORK MOUNTAIN VIEW CALIF STARTED SIX YEARS AGO AND WENT PUBLIC IN NOVEMBER 1991 IT HAS RAISED ABOUT 41 MILLION IN PUBLIC AND PRIVATE INVESTMENTS INCLUDING MONEY FROM GENERAL ELECTRIC CO'S NBC UNIT GANNETT CO AND CABLEVISION SYSTEMS CORP INTERACTIVE NETWORK STILL HAS ACCUMULATED DEBT OF SOME 38 MILLION AND RECENTLY WITHDREW A PROPOSED SECONDARY PUBLIC OFFERING OF 25 MILLION SHARES AFTER THE STOCK WAS BATTERED BY INVESTORS SELLING SHORT IN 1992 MOREOVER THE COMPANY POSTED A NET LOSS OF 167 MILLION ON SALES OF 530000 IN A SHORT SALE AN INVESTOR SELLS BORROWED STOCK IN THE BELIEF THAT IT CAN BE REPURCHASED LATER AT A LOWER PRICE INTERACTIVE NETWORK'S PRESIDENT AND CHIEF EXECUTIVE OFFICER DAVID D LOCKTON CONTENDS THE COMPANY IS READY TO BOOM I'VE BEEN DEVELOPING THIS BUSINESS FOR THE PAST FIVE YEARS HE SAID I'M NOW SUPPORTING AN INFRASTRUCTURE CAPABLE OF SERVING THE ENTIRE US INTERACTIVE NETWORK SUBSCRIBERS WILL BE ABLE TO PLAY ALONG WITH SPORTS PROGRAMS AND GAME SHOWS VIA HANDHELD CONTROL UNITS LINKED BY CABLE LINES OR FM RADIO SIGNALS THE SERVICE WHICH HAS BEEN TESTMARKETED IN THE SAN FRANCISCO AREA WILL EXPAND TO FOUR MAJOR METROPOLITAN MARKETS THIS FALL INCLUDING DENVER WHERE TELECOMMUNICATIONS IS BASED TELECOMMUNICATIONS IS ACQUIRING 1650000 SHARES AT 650 A SHARE INTERACTIVE SAID 67 MILLION OF THE PURCHASE PRICE WILL BE IN CASH AND THE BALANCE WILL BE IN THE FORM OF ADVERTISING AND PROMOTIONAL SERVICES IN THE NATIONAL ROLLOUT OF THE SERVICE 9304280098 930428 SEC EASES ITS RULES FOR SMALL BUSINESSES SEEKING TO ISSUE STOCK WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION FURTHER EASED ITS RULES FOR SMALL BUSINESSES SEEKING TO RAISE CAPITAL BY ALLOWING FIRSTTIME ISSUERS OF STOCK TO RAISE UP TO 10 MILLION WITHOUT MEETING THE FULL DISCLOSURE REQUIREMENTS OF LARGER ISSUERS UNTIL YESTERDAY'S 40 VOTE THE RELAXED DISCLOSURE RULES APPLIED TO COMPANIES SEEKING TO RAISE 5 MILLION IN PUBLIC STOCK OFFERINGS THE EXPANSION WAS PROPOSED IN AUGUST IN CONJUNCTION WITH A PACKAGE OF SMALLBUSINESS RULES ADOPTED BY THE SEC SINCE THE RULES TOOK EFFECT THE COMMISSION SAID IT HAS RECEIVED 50 FILINGS OF SIMPLIFIED DISCLOSURE FORMS COVERING 1284 MILLION IN SECURITIES IN THE COMPARABLE PERIOD A YEAR EARLIER THE SEC RECEIVED 25 FILINGS UNDER THE OLD RULES COVERING 281 MILLION IN SECURITIES THE SEC ALSO VOTED TO CONTINUE TO REQUIRE CANADIAN COMPANIES TO RECONCILE THEIR FINANCIAL STATEMENTS WITH US ACCOUNTING STANDARDS THE RULE HAD BEEN SCHEDULED TO EXPIRE EARLY THIS SUMMER BUT A STAFF SURVEY OF DISCLOSURE STATEMENTS FILED BY CANADIAN COMPANIES SHOWED SIGNIFICANT ENOUGH DIFFERENCES IN ACCOUNTING STANDARDS TO WARRANT EXTENDING THE RULE 9304280097 930428 MAYTAG'S CEO GOES THROUGH WRINGER AT ANNUAL MEETING HADLEY FACES ANGRY HOLDERS LIKENS PROMOTIONAL GAFFE TO BAD ACCIDENT' IN A CAR BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL NEWTON IOWA MAYTAG CORP'S CHAIRMAN FOUND HIMSELF PLAYING THE MAYTAG REPAIRMAN AS SHAREHOLDERS WANTED EXPLANATIONS FOR WHAT HAS GONE WRONG LATELY AT THE APPLIANCE MAKER CHAIRING HIS FIRST ANNUAL MEETING CHIEF EXECUTIVE LEONARD A HADLEY FACED ANGRY QUESTIONS ABOUT THE COMPANY'S LOSSES IT REPORTED ANOTHER YESTERDAY ITS LACKLUSTER STOCK AND A COSTLY VACUUMCLEANER PROMOTION THAT BLEW UP IN EUROPE MAYTAG SHAMEFACEDLY SAID LAST MONTH IT WOULD TAKE A 30 MILLION WRITEOFF BECAUSE OF THE PROMOTION IN WHICH MAYTAG'S HOOVER UNIT IN THE UNITED KINGDOM HAD PROMISED FREE PLANE TICKETS TO ANYONE BUYING A VACUUM CONSUMERS QUICKLY FIGURED OUT THAT THE TICKETS WERE WORTH MORE THAN THE MACHINE AND SOME 200000 AGREED TO TAKE THE OFFER NEITHER HOOVER NOR THE TRAVEL AGENCIES INVOLVED WERE PREPARED FOR THAT RESPONSE THE COMPANY WENT ON OVERTIME TO PRODUCE THE CANISTER VACUUMS AND A BRITISH TELEVISION REPORTER CAUGHT TRAVEL AGENTS TRYING TO TALK CUSTOMERS OUT OF TAKING THE TRIPS OR OTHERWISE MAKING IT DIFFICULT TO DO SO INITIALLY MAYTAG FIRED THREE EXECUTIVES INVOLVED INCLUDING THE PRESIDENT OF HOOVER EUROPE YESTERDAY MR HADLEY INDICATED THAT OTHERS ALSO MAY LOSE THEIR JOBS BEFORE THE CLEANUP IS COMPLETE RESPONDING TO INCREDULOUS SHAREHOLDERS MR HADLEY LIKENED THE PROMOTION TO A BAD ACCIDENT AND YOU CAN'T DETERMINE WHAT WAS IN THE DRIVER'S MIND HE SAID THAT TO SATISFY CUSTOMERS MAYTAG HAS PURCHASED THOUSANDS OF SEATS ON 11 AIRLINES INVOLVING MORE THAN 1100 FLIGHTS OVER THE NEXT SIX MONTHS THE HOOVER TRADE NAME IN THE UNITED KINGDOM IS VALUABLE AND THIS INVESTMENT IN OUR CUSTOMER BASE THERE IS ESSENTIAL TO OUR FUTURE MR HADLEY SAID INDEED IN DESCRIBING THE HOUSEHOLD CHORE SOME BRITS SAY THEY HOOVER THE CARPET MAYTAG'S STOCK HAS SLUMPED FROM A HIGH OF 20 A YEAR AGO IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE ITS SHARES WERE QUOTED AT 13625 DOWN 125 CENTS IN LIGHT OF THE STOCK'S DECLINE ONE SHAREHOLDER QUESTIONED MANAGEMENT'S 1992 BONUSES THE REST OF US HAVE TAKEN A BEATING WITH OUR INVESTMENT IN THE COMPANY THE SHAREOWNER SAID DRAWING APPLAUSE FROM THE PACKED NEWTON HIGH SCHOOL AUDITORIUM CROWD THE LATEST PROXY STATEMENT SHOWS THAT MR HADLEY RECEIVED A 200000 BONUS IN ADDITION TO HIS SALARY OF 455000 LAST YEAR WHEN HE WAS PRESIDENT FRED G STEINGRABER WHO HEADS MAYTAG'S COMPENSATION COMMITTEE OF THE BOARD SAID THAT LAST YEAR SEVERAL SENIOR OFFICERS RECEIVED LESS THAN 60 OF THEIR POTENTIAL BONUS HOW LONG BEFORE EARNINGS ARE BACK TO THE 1988 LEVEL ANOTHER HOLDER DEMANDED EVEN BEFORE MR HADLEY A 33YEAR COMPANY VETERAN COULD REPLY THE MAN CONTINUED WHY SHOULD WE HAVE ANY CONFIDENCE IN YOUR ANSWER GIVEN THE PERFORMANCE OVER THE LAST FIVE YEARS THE CHAIRMAN SAID MAYTAG IS A VERY DIFFERENT CORPORATION FROM FIVE YEARS AGO CITING SEVERAL ACQUISITIONS A CHANGING CUSTOMER BASE AND COMPETITIVE PRESSURES THAT HAVE KEPT THE COMPANY FROM RAISING PRICES ON ITS LINE OF MAYTAG WASHERS AND DRYERS AS FOR THE FUTURE MR HADLEY HEDGED HOPEFULLY BOTH SALES AND EARNINGS WILL IMPROVE THIS YEAR HE SAID UPON ADJOURNMENT THE CHAIRMAN PRONOUNCED IT A STIMULATING SESSION 9304280096 930428 WHO'S NEWS TWO ARE NAMED TO RULES BOARD OF ACCOUNTANTS BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ANTHONY T COPE A SENIOR VICE PRESIDENT OF WELLINGTON MANAGEMENT CO BOSTON AND JOHN M NEEL FOSTER FORMER VICE PRESIDENT AND TREASURER OF COMPAQ COMPUTER CORP HOUSTON WERE NAMED TO FIVEYEAR TERMS ON THE FINANCIAL ACCOUNTING STANDARDS BOARD THE APPOINTMENTS EFFECTIVE JULY 1 MAY INFLUENCE THE DIRECTION THAT THE SEVENMEMBER CHIEF RULEMAKING BODY FOR ACCOUNTANTS WILL TAKE IN TWO CONTROVERSIAL AREAS VALUING STOCK OPTIONS AND VALUING ASSETS AT CURRENT MARKET PRICES MANY COMPANIES OPPOSED A RECENT FASB PROPOSAL THAT WOULD REQUIRE COMPANIES TO DEDUCT THE VALUE OF STOCK OPTIONS FROM PROFITS BEGINNING IN 1997 COMPANIES ALSO OPPOSE AN FASB RULE THAT WILL REQUIRE BANKS AND INSURANCE COMPANIES TO VALUE CERTAIN DEBT SECURITIES AT CURRENT MARKET LEVELS STARTING IN 1994 INDEED THE POWERFUL BUSINESS ROUNDTABLE GROUP OF TOP EXECUTIVES AS WELL AS BANK AND INSURANCE COMPANIES HAVE SAID THEY WILL CONTINUE BOMBARDING THE FASB WITH CRITICISM OF THE STOCKOPTION PROPOSAL AND THE DEBTSECURITIES VALUE RULE UNDER THE BOARD'S NEW MAKEUP SINCE THE FASB REQUIRES A VOTE OF 5TO2 TO ISSUE RULES THE TWO NEW MEMBERS MAY SWING THE VOTE ON IMPLEMENTING BOTH PROPOSALS WHICH WERE APPROVED EARLIER THIS MONTH IN A TELEPHONE INTERVIEW MR COPE SAID THAT HE BELIEVES THAT SOME VALUE FOR STOCK COMPENSATION SHOULD BE DEDUCTED FROM PROFITS BUT HE ADDED THAT HE WASN'T SURE THE VALUATION METHOD KNOWN AS BLACKSCHOLES WHICH CONSIDERS STOCK VOLATILITY AND OTHER FACTORS IS BEST CURRENTLY THE FASB STAFF FAVORS THE BLACKSCHOLES METHOD MR COPE SAID HE WAS IN THE SKEPTICAL CAMP ABOUT MARKETVALUE ACCOUNTING AND DOESN'T BELIEVE THAT CERTAIN FIXED AND INTANGIBLE ASSETS SHOULD BE MARKED TO MARKET THE FINANCIALREPORT USER COMMUNITY OF WHICH I AM A MEMBER IS RELUCTANT TO LOSE THE LODESTONE OF THE HISTORICALCOST MODEL MR COPE ADDED INDICATING THAT HE LEANS TOWARD USING ORIGINAL COST TO VALUE CERTAIN ASSETS A POSITION THAT BUSINESS HAS LONG ADVOCATED MR FOSTER COULDN'T BE REACHED FOR COMMENT BUT AS A MEMBER OF AN ADVISORY GROUP TO THE FASB HE HAS PUBLICLY FAVORED DEDUCTING SOME STOCKOPTION VALUATION FROM EARNINGS HIS POSITION ON CURRENTVALUE ACCOUNTING ISN'T KNOWN THE PAIR SUCCEED VICTOR H BROWN AND A CLARENCE SAMPSON WHO ARE RETIRING FROM THE FASB BEFORE JOINING THE BOARD MR BROWN HAD BEEN AN EXECUTIVE VICE PRESIDENT OF FIRESTONE TIRE & RUBBER CO AND MR SAMPSON HAD BEEN CHIEF ACCOUNTANT AT THE SECURITIES AND EXCHANGE COMMISSION MR COPE HAS BEEN A DIRECTOR OF FIXEDINCOME CREDIT RESEARCH AT WELLINGTON AN INVESTMENT MANAGEMENT COMPANY SINCE 1992 AND A PARTNER SINCE 1979 MR FOSTER WAS A VICE PRESIDENT AND TREASURER AT COMPAQ SINCE 1983 AND LEFT THE COMPANY LATE IN 1992 9304280095 930428 INSIDE TRACK HOME DEPOT'S CHAIRMAN SOLD SHARES LAST MONTH BEFORE STOCK BEGAN TO SLIDE BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL THE CHAIRMAN OF HOME DEPOT INC THE RAPIDLY EXPANDING HOMEIMPROVEMENT RETAILER SOLD ABOUT 5 OF HIS HOME DEPOT STAKE IN MIDMARCH FOR 355 MILLION BEFORE THE STOCK SLUMPED TO 42 A SHARE FROM 48 ACCORDING TO SECURITIES AND EXCHANGE COMMISSION FILINGS SHARES OF THE ATLANTA CHAIN WHICH UNTIL RECENTLY WAS ONE OF THE BESTPERFORMING GROWTH STOCKS ON THE NEW YORK STOCK EXCHANGE HAVE SLIPPED IN RECENT WEEKS THE SLIDE COMES AMID A GENERALLY SOUR VIEW OF RETAILING STOCKS ON WALL STREET IT'S A CONCERN ABOUT GROWTH STOCKS IN GENERAL STARTING WITH PHILIP MORRIS AND CONTINUING WITH WALMART SAID DAVID BOLOTSKY A RETAIL ANALYST WITH GOLDMAN SACHS BERNARD MARCUS CHAIRMAN OF THE DOITYOURSELF HOME IMPROVEMENT CHAIN SOLD 555000 SHARES ON MARCH 16 BUT SEC FILINGS SHOW HE STILL OWNS 151 MILLION SHARES OF THE COMPANY'S STOCK AFTER A FOURFORTHREE STOCK SPLIT IN MIDAPRIL TWO OTHER HOME DEPOT OFFICERS SOLD SMALL AMOUNTS OF THEIR HOLDINGS IN THE SAME PERIOD AT ABOUT THE SAME PRICE ACCORDING TO SEC FILINGS MR MARCUS COULD NOT BE REACHED FOR COMMENT BECAUSE HE WAS TRAVELING ON BUSINESS A COMPANY OFFICIAL SAID BUT RONALD M BRILL HOME DEPOT'S CHIEF FINANCIAL OFFICER AND TREASURER SAID MR MARCUS'S SALES DID NOT REFLECT ANY CONCERN THAT HOME DEPOT'S SHARES WERE OVERPRICED THE SHARES AT CURRENT PRICE LEVELS ARE TRADING AT 51 TIMES EARNINGS REPORTED FOR THE YEAR ENDED JAN 31 RATHER THAN SENDING A BEARISH SIGNAL FROM THE TOP MR MARCUS'S SALES WERE STRICTLY THE RESULT OF THE CHAIRMAN'S DESIRE TO DIVERSIFY HIS HOLDINGS SAID MR BRILL THE MAJORITY OF HIS ASSETS ARE IN HOME DEPOT HE WANTED TO BECOME MORE LIQUID AND DISTRIBUTE SOME OF HIS ASSETS TO DO THE THINGS HE WANTS TO DO INCLUDING INVESTING IN NEW STARTUP BUSINESSES SOME INVESTORS HAVE BECOME LESS ENTHUSIASTIC ABOUT HOME DEPOT SHARES IN RECENT WEEKS AT LEAST IN PART BECAUSE OF THE IMPACT OF BIG WINTER STORMS LAST MONTH ON RETAIL SALES BUT THEIR CONCERNS ALSO FOCUS ON THREE CONSECUTIVE DROPS IN EXISTINGHOME SALES HOUSING TURNOVER INDUSTRY EXPERTS SAY IS A LEADING INDICATOR OF SPENDING IN THE 100 BILLIONAYEAR HOMEIMPROVEMENT MARKET THE GLOOMIER OUTLOOK IS REFLECTED IN A 28 INCREASE IN SHORT INTEREST IN THE STOCK IN THE MONTH ENDED APRIL 15 SHORTSELLERS BORROW SHARES AND SELL THEM HOPING TO PROFIT WHEN THEY REPLACE THEM LATER AFTER A STOCK DROP SHORT INTEREST IS THE NUMBER OF BORROWED SHARES SHORTSELLERS ARGUE THAT THE COMPANY'S ROBUST GROWTH RATE IS LIKELY TO SLOW AND THAT ITS EXPANSION RUNS THE RISK OF CANNIBALIZING SOME EXISTING OPERATIONS MOREOVER THEY ARGUE THAT EVEN IF HOME DEPOT'S EARNINGS GROWTH MEETS THE HIGH EXPECTATIONS OF SOME WALL STREET ANALYSTS ITS STOCK PRICE MAY BE DRAGGED DOWN IN TANDEM WITH OTHER CHAIN OR WAREHOUSE RETAILERS LIKELY TO REPORT DISAPPOINTING RESULTS MOST ANALYSTS ARE PREDICTING EARNINGS OF 107 TO 110 A SHARE FOR THE YEAR ENDING JANUARY 1994 ON FEB 22 THE HOMEIMPROVEMENT RETAILER REPORTED UNEXPECTEDLY STRONG EARNINGS OF 29 CENTS A SHARE FOR ITS FISCAL FOURTH QUARTER ENDED JAN 31 COMPARED WITH 21 CENTS A SHARE A YEAR EARLIER THE 44 INCREASE IN NET INCOME CAME AMID STRONG CONSUMER SPENDING ON HOME IMPROVEMENTS LATE LAST YEAR FOR THE YEAR HOME DEPOT HAD A 30 JUMP IN PERSHARE EARNINGS TO 82 CENTS FROM 60 CENTS ANALYSTS NOTED THAT HOMEIMPROVEMENT SPENDING IS HIGHLY CYCLICAL JUMPING SOME 74 LAST YEAR AFTER DECLINING 32 IN 1991 DESPITE THE SLOWGROWTH RETAIL ENVIRONMENT IN WHICH HOME DEPOT NOW FINDS ITSELF SOME ANALYSTS STILL RECOMMEND PURCHASE OF HOME DEPOT SHARES BASED ON THE COMPANY'S ABILITY TO MAINTAIN AND EXPAND MARKET SHARE THROUGH LOW PRICES HUGE INVENTORIES AND UNITVOLUME GROWTH I BELIEVE THE WEATHER WAS A ONETIME EVENT IN HOME DEPOT'S CASE BECAUSE HOME IMPROVEMENT PROJECTS ARE THINGS THAT ARE DEFERABLE SAID KIMBERLY WALIN WHO TRACKS THE COMPANY FOR LEHMAN BROTHERS THE LONGTERM GROWTH STORY OF HOME DEPOT REMAINS VERY COMPELLING THEY CAN ACHIEVE 30 TO 35 EARNINGS GROWTH OVER THE NEXT FIVE YEARS THEY HAVE A LOT OF MARKET PENETRATION LEFT TO ACHIEVE IN THE NORTHEAST AND THEY ARE EXPANDING IN THE MIDATLANTIC MR BOLOTSKY THE GOLDMAN ANALYST IS MAINTAINING HIS BUY RECOMMENDATION MY VIEW IS THAT THE STOCK HAS PRETTY MUCH BOTTOMED HE SAID ASSUMING THAT THE STOCK MARKET STABILIZES I THINK IT WILL OUTPERFORM BOTH THE SECTOR AND THE MARKET AS A WHOLE FOR THE REST OF THE YEAR ALEXANDRA PEERS CONTRIBUTED TO THIS ARTICLE 9304280094 930428 UNITED WAY OF AMERICA CUTS ITS BUDGET PLANS FOR 1993 HEAD SAYS ALEXANDRIA VA THE UNITED WAY OF AMERICA SAID IT SCALED BACK SOME OF ITS BUDGET PLANS FOR 1993 NONETHELESS PRESIDENT ELAINE CHAO SAID THE PHILANTHROPIC ORGANIZATION IS MOVING FORWARD THE NATIONAL UMBRELLA ORGANIZATION FOR COMMUNITY UNITED WAY FUND RAISING ORIGINALLY SOUGHT 19 MILLION IN DUES FROM MEMBERS FOR ITS PLANNED 214 MILLION BUDGET BUT THAT GOAL HAS SINCE BEEN REDUCED TO 182 MILLION SO FAR THE UNITED WAY OF AMERICA SAYS IT RECEIVED PLEDGES FOR 163 MILLION BETWEEN 6 MILLION AND 7 MILLION HAS BEEN PAID THE ORGANIZATION ALSO SAID 1012 MEMBERS HAVE SIGNED ON FOR THE 1993 CAMPAIGN WHICH REPRESENTS ABOUT 73 OF THE 1378 MEMBERS WHO PARTICIPATED IN THE 1991 CAMPAIGN PRIOR TO WILLIAM A ARAMONY'S DEPARTURE MR ARAMONY FORMER PRESIDENT OF THE ORGANIZATION LEFT THE UNITED WAY AS A RESULT OF ALLEGATIONS OF EXCESSIVE SPENDING PRACTICES AND USE OF HIS OFFICE FOR PERSONAL GAIN WE ARE CONTINUING TO MAKE PROGRESS MS CHAO SAID WE FEEL GOOD ABOUT THE CONSISTENT DAYTODAY GAINS WE ARE MAKING IN REGAINING THE TRUST OF OUR MEMBERS MS CHAO THE FORMER HEAD OF THE PEACE CORPS SAID SHE DOES NOT EXPECT ANY STAFF REDUCTIONS OR PROGRAM CUTS DUE TO THE REDUCED BUDGET 9304280093 930428 ECONOMY CLINTON SEEKS TO RENEW FOCUS ON DEFICIT CUTS TOUGH TALK ON SPENDING FOLLOWS SHARP CRITICISM FROM BUDGET DIRECTOR BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON STUNG BY CRITICISM FROM HIS OWN BUDGET DIRECTOR SOUGHT TO FOCUS ATTENTION BACK ON HIS DEFICITREDUCTION MESSAGE AND THE SELLING OF HIS PROGRAM IN A SPEECH THE DAY AFTER BUDGET DIRECTOR LEON PANETTA SAID HE NEEDED TO STAY WITH HIS PRIORITIES MR CLINTON SEEMED TO RESPOND WITH TOUGH DEFICIT TALK AND A REQUEST FOR PUBLIC SUPPORT FOR LEGISLATION THAT WOULD INCREASE HIS ABILITY TO DELETE INDIVIDUAL ITEMS FROM APPROPRIATIONS BILLS BUT HIS AIDES AND ALLIES ON CAPITOL HILL WERE LEFT TO UNDO THE DAMAGE FROM MR PANETTA'S ASSERTION THAT THE NORTH AMERICAN FREE TRADE AGREEMENT WOULD BE DEAD IF A VOTE WERE TAKEN TODAY AND THAT THE RUSSIA AID PACKAGE WAS IN TROUBLE MR PANETTA'S VIEW IS SHARED PRIVATELY BY OTHERS IN THE ADMINISTRATION AND MANY IN CONGRESS BUT SEN DANIEL PATRICK MOYNIHAN CHAIRMAN OF THE FINANCE COMMITTEE PUBLICLY EXPRESSED IRRITATION WITH THE GLOOMY ASSESSMENT I'M JUST ASTONISHED AND REELING AND WAITING FOR THE NEXT BLOW SAID THE NEW YORK DEMOCRAT ADDING THAT MR PANETTA'S REMARKS COULD HAVE THAT SELFCONFIRMING EFFECT OF CREATING POLITICAL TROUBLE FOR THE ADMINISTRATION ASKED IF THE NORTH AMERICAN FREE TRADE AGREEMENT WAS IN PERIL MR MOYNIHAN REPLIED THE BUDGET DIRECTOR SAID IT WAS DEAD THAT QUALIFIES AS SOME DATA AT THE TREASURY UNDERSECRETARY LAWRENCE SUMMERS ASSURED REPORTERS THAT THE ADMINISTRATION BELIEVES NAFTA IS DOABLE AND GEORGE STEPHANOPOULOS THE WHITE HOUSE COMMUNICATIONS DIRECTOR SAID I THINK THAT IN SOME WAYS THE REMARKS WERE TAKEN A BIT OUT OF CONTEXT AT TIMES AND PROBABLY PUMPED UP A LITTLE BIT AT OTHER TIMES BUT MR PANETTA'S COMMENTS CLEARLY CAUSED ANGUISH IN THE WHITE HOUSE JUST AS THE PRESIDENT HOPED TO SPRUCE UP HIS IMAGE AT HIS 100DAY MARK TOMORROW ASKED IF HE WOULD TAKE MR PANETTA TO THE WOODSHED THE PHRASE USED WHEN PRESIDENT REAGAN DISCIPLINED HIS OUTSPOKEN BUDGET DIRECTOR DAVID STOCKMAN MR CLINTON SAID HE DIDN'T NEED TO TAKE HIM TO THE WOODSHED I NEED FOR HIM TO GET HIS SPIRITS UP A LITTLE THE PRESIDENT SAID MR PANETTA HAD BEEN WORKING 60 TO 70 HOURS A WEEK AND GOT DISCOURAGED THE WHITE HOUSE SEEMED TO AGREE WITH MR PANETTA IN SOME AREAS MR STEPHANOPOULOS SAID CONGRESSIONAL COMMITTEES WON'T CONSIDER THE HEALTH CARE OVERHAUL BILL UNTIL AFTER THE PRESIDENT'S DEFICITREDUCTION BILL HAS CLEARED THE HOUSE AND SENATE JUST AS MR PANETTA HAD URGED WHITE HOUSE OFFICIALS HOWEVER STRESSED THAT THE PRESIDENT STILL INTENDS TO PRESS FOR PASSAGE OF THE HEALTH CARE PLAN THIS YEAR MR PANETTA HOWEVER ALSO OPENED THE FLOODGATE FOR REPUBLICAN ATTACKS REP DICK ARMEY OF TEXAS A HOUSE REPUBLICAN LEADER SAID THE ADMINISTRATION SHOULD BE WORKING TO CHANGE THE OPPOSITION IN CONGRESS TO THE TRADE AGREEMENT THE DUTY OF A LEADER IS TO LEAD HE SAID IF PRESIDENT CLINTON TRULY IS A NEW DEMOCRAT' WHO BELIEVES IN FREE TRADE HE SHOULD FIGHT FOR THAT PRINCIPLE THE ADMINISTRATION WAS FORCED INTO DAMAGE CONTROL BOTH INSIDE AND OUTSIDE THE WHITE HOUSE DAVID DREYER A COMMUNICATIONS AIDE WHO KNOWS MR PANETTA FROM HIS DAYS AT CAPITOL HILL ASSURED OTHER STAFFERS THAT THE FORMER CONGRESSMAN WOULDN'T HAVE SOUGHT TO HURT THE PRESIDENT AND THAT HE DIDN'T UNDERSTAND THE IMPACT HIS COMMENTS WOULD HAVE MR PANETTA'S FRIENDS CONCEDED THAT HE MAY HAVE BEEN SOMEWHAT FRUSTRATED AT HIS OWN LACK OF INFLUENCE ON THE PRESIDENT'S COURSE HE HAS OFTEN BEEN OVERSHADOWED BY ROBERT RUBIN THE CHAIRMAN OF THE NATIONAL ECONOMIC COUNCIL AND TREASURY SECRETARY LLOYD BENTSEN HE TOOK OVER AN AGENCY THAT RULED DOMESTIC POLICY UNDER RICHARD DARMAN BUT HAS RETAINED LITTLE OF THAT CLOUT STILL ASSOCIATES SAID IT'S LIKELY THE COMMENTS OCCURRED BECAUSE MR PANETTA HASN'T FULLY ADJUSTED FROM HIS DAYS IN THE HOUSE WHERE HE COULD BE OUTSPOKEN WITHOUT CREATING MORE THAN A RIPPLE REGARDLESS IT WAS ANOTHER BAD DAY FOR MR CLINTON WHOSE TEAM HAD TO ANSWER QUESTIONS ABOUT THE REMARKS THROUGHOUT THE DAY IN HIS SPEECH AT A REALTORS CONVENTION MR CLINTON SOUGHT TO FOCUS AGAIN ON DEFICIT REDUCTION AN ISSUE THAT WAS POPULAR FOR HIM DURING THE TRANSITION BUT THAT HAD BEEN LOST TO HIS OPPONENTS ON CAPITOL HILL IN THE DEBATE OVER HIS STIMULUS PACKAGE AT A MEETING MONDAY EVENING THAT INCLUDED TOP POLITICAL AND COMMUNICATIONS AIDES AS WELL AS HILLARY RODHAM CLINTON THE ADMINISTRATION PLOTTED A STRATEGY FOR ITS ECONOMIC PACKAGE BUT MR CLINTON'S EFFORTS TO STAY FOCUSED ON HIS MESSAGE WERE DERAILED BY MR PANETTA'S REMARKS 9304280092 930428 CORRECTIONS & AMPLIFICATIONS INTERNATIONAL FASHIONS APPAREL CORP A HOLDING COMPANY THAT IS MAJORITY OWNED BY HUGO BOSS AG OF GERMANY SAYS IT HIRED INDEPENDENT CONTRACTOR PHILIP JACOBY TO HELP IT CLOSE THE BOOKS ON 17 OF ITS HAMBURGERS CLOTHIERS AND HARRIS & FRANK RETAIL UNITS A MANAGING COLUMN APRIL 20 MISSTATED THE FIGURE AND ALSO INCORRECTLY STATED THAT MR JACOBY WORKED FOR JOSEPH & FEISS A SEPARATE RETAIL UNIT OF INTERNATIONAL FASHIONS APPAREL CORP THE INCORRECT INFORMATION PROVIDED BY A SEARCH FIRM THAT PLACED MR JACOBY IN THE TEMPORARY ASSIGNMENT WAS NOT DOUBLECHECKED WITH IFAC AS IT SHOULD HAVE BEEN 9304280091 930428 BUSINESS BRIEF BANC ONE CORP HOLDING COMPANY TO TEST PHONE FOR HOME BANKING BANC ONE CORP SAID IT PLANS THIS FALL TO TEST MARKET AN INTELLIGENT TELEPHONE MADE BY WORLDCORP INC OF HERNDON VA FOR USE IN HOME BANKING THE COLUMBUS OHIO BANK HOLDING COMPANY WHICH WILL SELL SCANFONE THROUGH ITS BRANCHES IN A METROPOLITAN AREA IT WOULDN'T NAME SAID CUSTOMERS COULD USE THE PHONES FOR BASIC BANKING FUNCTIONS THE PHONES CAN ALSO TIE INTO A NETWORK OPERATED BY WORLDCORP'S US ORDER UNIT FOR HOME SHOPPING AND TELEPHONE COMPANIES CAN USE THEM FOR CALLER IDENTIFICATION SERVICES WORLDCORP PROVIDES AIR TRANSPORTATION AND TRANSACTION PROCESSING SERVICES 9304280090 930428 BOW VALLEY REDEEMING PREFERRED CALGARY ALBERTA BOW VALLEY INDUSTRIES LTD SAID IT PLANS TO REDEEM ALL ITS OUTSTANDING CONVERTIBLE CLASS D PREFERRED SHARES SERIES 3 FOR 2632 CANADIAN DOLLARS US2070 A SHARE THE COMPANY SAID THERE ARE 1177000 SHARES OUTSTANDING HOLDERS MAY REDEEM THEIR SHARES ON MAY 27 WHICH BOW VALLEY HAS FIXED AS THE REDEMPTION DATE OR CONVERT THEIR HOLDINGS INTO BOW VALLEY COMMON STOCK AT THE RATE OF 198 COMMON SHARES FOR EACH PREFERRED SHARE HELD UNTIL THE CLOSE OF BUSINESS MAY 21 BOW VALLEY COMMON CLOSED YESTERDAY AT 1250 UP 125 CENTS IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING BOW VALLEY IS A CALGARYBASED OIL AND GAS EXPLORATION AND PRODUCTION CONCERN 9304280089 930428 INTERNATIONAL TWO JAPANESE AIRLINES ANNOUNCE MEASURES TO BRING DOWN COSTS A WALL STREET JOURNAL NEWS ROUNDUP TOKYO TWO JAPANESE AIRLINES ANNOUNCED COSTCUTTING PLANS AMID THE CURRENT TOUGH TIMES FOR INTERNATIONAL CARRIERS JAPAN AIRLINES CO SAID IT IS EXPANDING ITS EARLY RETIREMENT OFFER TO MORE PEOPLE WHILE ALL NIPPON AIRWAYS CO SAID IT WOULD CUT ITS DIVIDEND JAL SAID IT WILL OFFER VOLUNTARY RETIREMENT AMONG EMPLOYEES BETWEEN AGES 35 AND 44 IN AN EFFORT TO CUT LABOR COSTS THE WORK FORCE REDUCTION PLAN IS AN EXTENSION OF A VOLUNTARY EARLY RETIREMENT PROGRAM THAT APPLIED TO EMPLOYEES OVER THE AGE OF 45 THE OFFICIALS SAID JAL IS EXPECTED TO POST AN UNCONSOLIDATED PRETAX LOSS OF 50 BILLION YEN 452 MILLION FOR THE FISCAL YEAR MARCH 31 JAL HOPES TO TRIM ITS WORK FORCE TO ABOUT 10000 OVER THE NEXT FIVE YEARS FROM THE CURRENT 12000 EXCLUDING PILOTS AND FLIGHT ATTENDANTS ABOUT 7000 EMPLOYEES AT JAL ARE BETWEEN AGES 35 AND 44 ANA MEANWHILE SAID IT WILL LOWER ITS DIVIDEND FOR THE FISCAL YEAR ENDED MARCH 31 TO 4 YEN A SHARE THAT COMPARES WITH 5 YEN A SHARE A YEAR EARLIER 9304280088 930428 INTERNATIONAL BRIEF ALPS ELECTRIC CO JAPANESE CONCERN WILL CUT 1300 JOBS SHUT THREE PLANTS ALPS ELECTRIC CO HURT BY SLUMPING DEMAND FOR ELECTRONICS GOODS AND THE YEN'S RAPID APPRECIATION SAID IT AND A SUBSIDIARY WILL CUT THEIR COMBINED WORK FORCE BY 13 AND CLOSE THREE FACTORIES IN A MAJOR RESTRUCTURING PROGRAM THE JAPANESE MAKER OF FLOPPYDISK DRIVES AND OTHER ELECTRONIC PARTS SAID IT AND TOHOKU ALPS CO WILL ASK 1300 OF THEIR 10300 WORKERS TO TAKE VOLUNTARY RETIREMENT BY THE END OF JUNE THEY PLAN TO SHUTTER THREE JAPANESE COMPONENTS FACTORIES BY THE END OF SEPTEMBER TO COPE WITH THE STRONGER YEN ALPS SAID IT WILL SHIFT THE PRODUCTION TO FACTORIES ABROAD RAISING ITS OVERSEAS PRODUCTION RATIO TO 50 FROM ROUGHLY 20 9304280087 930428 CAVALIER TERMINATES UNDERWRITER WICHITA FALLS TEXAS CAVALIER HOMES INC SAID IT TERMINATED PRINCIPAL/EPPLER GUERIN & TURNER AS THE UNDERWRITER OF ITS PROPOSED 12 MILLIONSHARE PUBLIC OFFERING BECAUSE THE INVESTMENT FIRM DIDN'T MAKE AN ACCEPTABLE OFFER FOR THE STOCK A SPOKESMAN FOR THE COMPANY WHICH MAKES MANUFACTURED HOUSING SAID THE PROPOSED PRICE WAS LESS THAN CAVALIER'S RECENT TRADING PRICE ALTHOUGH HE DECLINED TO PROVIDE FURTHER DETAILS HE SAID THE PROPOSED MAXIMUM OFFERING PRICE IN A LETTER OF INTENT FOR THE OFFERING WAS 16 A SHARE IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING YESTERDAY CAVALIER CLOSED AT 1450 A SHARE UP 25 CENTS A SPOKESMAN FOR PRINCIPAL/EPPLER GUERIN & TURNER SAID THE MARKET HAS JUST GONE BAD SINCE THE LETTER OF INTENT WAS SIGNED INDEED SINCE MARCH 12 WHEN THE OFFERING WAS FIRST ANNOUNCED CAVALIER'S STOCK PRICE HAS FALLEN ABOUT 10 THE SPOKESMAN FOR CAVALIER SAID THE COMPANY HASN'T DECIDED IF IT WILL PROCEED WITH THE OFFERING THROUGH ANOTHER UNDERWRITER DELAY THE OFFERING OR WITHDRAW IT AND PURSUE AN ALTERNATIVE 9304280086 930428 BUSINESS BRIEF BETHLEHEM STEEL REPORTS LARGE LOSS NUCOR EARNINGS ROSE FOR 1ST QUARTER BETHLEHEM STEEL CORP SAID ITS FIRSTQUARTER LOSS WIDENED FROM ITS YEAREARLIER DEFICIT BEFORE ACCOUNTING CHANGES AS PRICES SANK EVEN THOUGH DEMAND SURGED THE NATION'S SECONDLARGEST STEELMAKER REPORTED A NET LOSS OF 413 MILLION OR 54 CENTS A SHARE IN 1992'S FIRST QUARTER BETHLEHEM HAD A NET LOSS OF 2863 MILLION OR 382 A SHARE AFTER A CHARGE OF 250 MILLION OR 327 A SHARE FOR CHANGES IN HOW THE COMPANY ACCOUNTS FOR RETIREE HEALTH BENEFITS AND INCOME TAXES SALES FOR THE LATEST QUARTER ROSE 25 TO 102 BILLION COMPARED WITH 9954 MILLION CHARLES A BRADFORD AN ANALYST WITH UBS SECURITIES SAID HE WAS IMPRESSED BY BETHLEHEM'S IMPROVEMENT FROM 1992'S FOURTH QUARTER OPERATING LOSSES IN ITS BASIC STEEL OPERATIONS NARROWED TO 29 MILLION IN FIRST PERIOD FROM 79 MILLION IN THE FOURTH QUARTER THE BETHLEHEM PA COMPANY CREDITED HIGHER STEEL SHIPMENTS LOWER PRODUCTION COSTS AND AN IMPROVED PRODUCT MIX FOR THE NARROWER OPERATING LOSS WE HAVE EXPERIENCED A SIGNIFICANT INCREASE IN ORDERS PRIMARILY FROM THE AUTOMOTIVE MARKET CURTIS H BARNETTE CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN A STATEMENT BUT PRICES HOVERED AT THE FOURTHQUARTER'S LEVELS AND WERE LOWER THAN THOSE OF 1992'S FIRST QUARTER MEANWHILE NUCOR CORP REPORTED THAT ITS EARNINGS ROSE 34 TO 217 MILLION OR 50 CENTS A SHARE FOR ITS FIRST QUARTER ENDED APRIL 3 COMPARED WITH NET INCOME OF 162 MILLION OR 38 CENTS A SHARE IN THE YEAREARLIER PERIOD SALES FOR THE QUARTER ROSE 26 TO 4898 MILLION COMPARED WITH 3884 MILLION A YEAR EARLIER GREGG S LUCAS AN ANALYST AT INTERSTATE/JOHNSON LANE POINTED OUT THAT NUCOR'S SHEET STEEL MILL IN HICKMAN ARK PENALIZED EARNINGS IN LAST YEAR'S FIRST QUARTER BECAUSE OF STARTUP COSTS BUT ADDED TO OPERATING PROFIT THIS YEAR YET THE CHARLOTTE NC MINIMILL OPERATOR'S NET INCOME WAS HURT BY A CHARGE OF 36 MILLION COMPARED WITH A CHARGE OF 13 MILLION A YEAR AGO SAID F KENNETH IVERSON CHAIRMAN THE LASTINFIRSTOUT ACCOUNTING CHARGE RESULTED FROM AN INABILITY TO PASS ON HIGHER SCRAP PRICES QUICKLY ENOUGH RESULTS ALSO WERE HURT BY ABOUT 300000 DUE TO AN EXPLOSION IN HICKMAN THAT SHUT DOWN ONE FURNACE FOR ONE WEEK SAID MR IVERSON BUT MR IVERSON SAID DEMAND IS STRONG POINTING TO THE FACT THAT THE COMPANY'S CRAWFORDSVILLE IND SHEET STEEL MILL IS BOOKED THROUGH THE THIRD QUARTER BETHLEHEM TOO TALKED OF HIGHER DEMAND MR BARNETTE SAID IMPROVING TRENDS IN THE ECONOMY AND STEEL MARKETS SHOULD CONTINUE FOR THE REST OF THE YEAR HE EXPECTS DOMESTIC STEEL SHIPMENTS TO RISE 5 TO 86 MILLION TONS COMBINED WITH COST CUTTING AN IMPROVED PRODUCT MIX AND HIGHER PRICES BETHLEHEM SHOULD SHOW A PROFIT THIS YEAR MR BARNETTE SAID MAJOR STEELMAKERS INCLUDING BETHLEHEM RAISED PRICES THIS MONTH AND ANNOUNCED PLANS FOR ANOTHER PRICE INCREASE THIS SUMMER J CLARENCE MORRISON AN ANALYST WITH PRUDENTIAL SECURITIES SAID IT MAY BE EARLY 1994 BEFORE BETHLEHEM PRODUCES A MATERIAL IMPROVEMENT IN EARNINGS BETHLEHEM HAS REALLY GOT A LOT OF WORK LEFT HE SAID 9304280085 930428 WHO'S NEWS MILLER BUILDING SYSTEMS INC MILLER BUILDING SYSTEMS INC ELKHART IND H NOEL JACKSON EXECUTIVE VICE PRESIDENT WAS NAMED A DIRECTOR OF THIS MAKER OF BUILDING MODULES THE ELECTION OF MR JACKSON 46 YEARS OLD INCREASES THE SIZE OF THE BOARD TO SEVEN MEMBERS 9304280084 930421 REVIEW & OUTLOOK EDITORIAL IN DEFENSE OF JANET RENO THIS WAS NEWS BECAUSE ONLY THE DAY BEFORE THE PRESIDENT WAS DUCKING RESPONSIBILITY EXPLICITLY PLACING THE BURDEN ON ATTORNEY GENERAL JANET RENO AT A PHOTO SESSION MONDAY MORNING IN THE ROSE GARDEN MR CLINTON SAID I KNEW IT WAS GOING TO BE DONE BUT THE DECISION WAS ENTIRELY HERS WHITE HOUSE SPOKESMAN GEORGE STEPHANOPOULOS SAID THE ATTORNEY GENERAL INFORMED THE PRESIDENT SUNDAY THAT THEY WERE PLANNING ON GOING AHEAD WITH THIS KIND OF AN OPERATION BUT IT'S A DECISION BY THE ATTORNEY GENERAL AND THE FBI IN LINE WITH THE SCRIPT MS RENO PLAYED HER PART BRAVELY TAKING A SUBSTANTIAL BEATING FROM THE PRESS FOR HER PRESIDENT I APPROVED THE PLAN AND I'M RESPONSIBLE FOR IT SHE SAID WE SUSPECT THIS EVERGLADES NATIVE NEVER MISUNDERSTOOD TAMMY WYNETTE YET THE PRESIDENT'S LACK OF GRACE IN THE FACE OF THE WACO TRAGEDY RAISES ANEW ISSUES ABOUT HIS INSTINCT ON MATTERS OF PERSONAL RESPONSIBILITY AND WITH THESE ISSUES OF CHARACTER ALSO COME ISSUES OF COMPETENCE ADMITTEDLY THERE'S A DANGER IN SECONDGUESSING THE OPERATIONAL DETAILS BUT WE ELECT PRESIDENTS TO MAKE THE TOUGH DECISIONS AND WHAT IS DISTRESSINGLY REVEALED IN THE PAST TWO DAYS IS THAT SO FAR MR CLINTON DOES NOT SEEM TO HAVE ORGANIZED HIS ADMINISTRATION TO DEAL WITH THEM WHAT IS INCREASINGLY AT ISSUE IS HIS CAPACITY TO GOVERN PARTICULARLY DANGEROUS TO MR CLINTON IS THE POSSIBILITY THAT WACO WILL CONFIRM AND SOLIDIFY ALREADY GATHERING DOUBTS HIS DISAPPROVAL RATING IS UNPRECEDENTEDLY HIGH AT SUCH AN EARLY STAGE ONE SUSPECTS THE SHIP IS SPRINGING LEAKS WHEN A DEMOCRATIC POLLSTER FEELS COMPELLED TO TELL A JOURNAL REPORTER THIS IS NO BAY OF PIGS OF COURSE MR CLINTON HAS BEEN BUSY WITH OTHER SUPPOSEDLY SERIOUS THINGS BUT DOES ANYONE DOUBT THAT HAD THIS BEEN THE WHITE HOUSE OF JFK OR JOHNSON OR NIXON OR REAGAN SOMEONE WITH MATURE POLITICAL INSTINCTS WOULD HAVE NOTICED SAY AROUND DAY 30 THAT A DISASTER OF SOME SORT WAS FESTERING IN WACO AND IF THEY FELT THE TIME HAD COME FOR ACTION THEY WOULD HAVE SOUGHT THE BEST ADVICE AVAILABLE ON LARGESCALE RESCUE OPERATIONS OR PERHAPS SOMEONE AT THE PENTAGON THAT MR CLINTON HAS ALIENATED WOULD HAVE SUGGESTED THAT IF YOU USE FORCE USE IT QUICKLY AND OVERWHELMINGLY THEY WOULD NOT IN SHORT HAVE BEEN PANICKED INTO DUMPING RESPONSIBILITY ONTO THE BARELYINOFFICE JANET RENO OPERATING WITHOUT A CONFIRMED STAFF TO ADVISE HER AND WITH A HOLDOVER FBI CHIEF OPERATING UNDER A CLOUD MORE AND BETTER STAFF WORK MIGHT HAVE DISPELLED THE FALSE SENSE OF URGENCY THE JUSTICE DEPARTMENT IS NOT THE ONLY PART OF GOVERNMENT HAVING TROUBLE MAKING CRISP DECISIONS FINANCIAL INDUSTRY SOURCES FOR EXAMPLE TELL US THAT THE FRONTLINE REGULATORS ARE STILL RUNNING AROUND IN CIRCLES BECAUSE THEY'RE RUDDERLESS NO ONE PERMANENT HEADS THE FDIC RESOLUTION TRUST OR THE OFFICE OF THRIFT SUPERVISION THE APPOINTMENTS PROCESS IS BOGGED DOWN IN CONFUSION IN GENERAL AND THE WHITE HOUSE DIVERSITY OBSESSION IN PARTICULAR MS RENO MOST SPECTACULARLY WAS THRUST INTO HER JOB LATE AFTER DIVERSITY AND NANNIES CONSUMED TWO OTHER WOMEN YESTERDAY MR CLINTON MADE A STRONG EFFORT TO MOVE THE LOCUS OF ACCOUNTABILITY BACK ONTO HIMSELF BUT WHERE WILL HE BE TOMORROW WHEN THE CONGRESSIONAL COMMITTEES MOVE IN ON HER MAYBE ZOE BAIRD SHOULD CONSIDER HERSELF FORTUNATE WE SEE NO COMPELLING REASON WHY JANET RENO SHOULD BE TAKING THE FALL FOR THIS MESS IT'S CERTAINLY OUR SENSE THAT A SIGNIFICANT NUMBER OF PEOPLE WERE INCENSED YESTERDAY AT THE WHITE HOUSE'S INITIAL ATTITUDE WE MAY LEARN WHETHER THIS JUDGMENT IS A PERMANENT ONE IN THE SPECIAL ELECTION RACE OF DEMOCRATIC TEXAS SENATOR BOB KREUGER NEXT MONTH THE FIRST CHANCE VOTERS WILL HAVE TO REGISTER A VERDICT ON THEIR NEW ADMINISTRATION FOR THE GATHERING SENSE IS NOT ONLY ABOUT MR CLINTON BUT ABOUT THE AGENDA HE'S ADOPTED THE WHITE HOUSE HAS BEEN PREOCCUPIED WITH DIVERSITY WITH GAYS IN THE MILITARY WITH AN ENDANGERED JOBS BILL AND A CONTRADICTORY DEFICIT REDUCTION BILL AND BY THE QUIXOTIC TASK OF REFORMING 14 OF GROSS DOMESTIC PRODUCT IN ITS HEALTH CARE INITIATIVE THESE ISSUES MAKE GOOD SEMINAR TOPICS BUT GOVERNING ALSO INVOLVES WHAT TO DO ABOUT A WACO ONLY MONTHS INTO THIS PRESIDENCY WE ARE FAST APPROACHING THE POINT WE EXPERIENCED TOWARD THE END OF THE BUSH PRESIDENCY WHEN THE BEST HOPE WAS THAT SOMEONE WOULD GO INTO THE PRESIDENT AND TELL HIM THAT HE DESPERATELY NEEDS BETTER ADVICE OR BETTER ADVISERS MOST OF ALL THIS PRESIDENT NEEDS TO FOCUS HIS ENERGY ON PRIMARY NOT PERIPHERAL GOALS AND HE VERY MUCH NEEDS TO DISCOVER CONSTANCY PUT IT THIS WAY HARRY TRUMAN SAID THE BUCK STOPS HERE BUT HE DIDN'T NEED 24 HOURS TO SEE WHICH WAY THE WIND WAS BLOWING BEFORE HE SAID IT SEE RELATED LETTER LETTERS TO THE EDITOR THE SLEEP OF REASON WSJ 4/28/93 9304210095 9304280083 930428 MARKETING & MEDIA GENERAL INSTRUMENT INTEL AND MICROSOFT JOIN THE RACE FOR INTERACTIVE' TV SYSTEM BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL GENERAL INSTRUMENT CORP INTEL CORP AND MICROSOFT CORP HAVE JOINED THE RACE TO DEVELOP AN INTERACTIVE TELEVISION SYSTEM OFFICIALLY ANNOUNCING YESTERDAY THAT THEY ARE DEVELOPING A CABLE CONVERTER BOX WITH THE POWER OF A PERSONAL COMPUTER THE THREE COMPANIES SAID THEY ARE WORKING ON A WAY TO COMBINE AN INTEL MICROPROCESSOR CHIP WITH MICROSOFT SOFTWARE IN A GENERAL INSTRUMENT CABLETV CONVERTER BOX THE DEVICE WOULD ALLOW TELEVISION VIEWERS TO ELECTRONICALLY RECEIVE INFORMATION SUCH AS NEWS REPORTS AIRLINE SCHEDULES AND STOCK QUOTES AS WELL AS PERFORM SUCH TASKS AS BANKING AND SHOPPING EARLIER THIS MONTH IT WAS REPORTED THAT THE THREE COMPANIES WERE IN DISCUSSIONS TO DEVELOP SUCH A SYSTEM THE TRIO IS BANKING ON A YET UNFORMED MARKET FOR ELECTRONIC SERVICES PUMPED TO TELEVISION SETS IN LARGE NUMBERS OF HOMES MOST ELECTRONIC DATA SERVICES CURRENTLY AVAILABLE REACH HOMES THROUGH COMPUTER ONLINE SERVICES APPEALING TO A LIMITED NUMBER OF PERSONAL COMPUTER USERS THE THREE COMPANIES' PROJECT BASICALLY COMES DOWN TO WHERE PEOPLE ARE GOING TO GET A LOT OF THEIR INFORMATION SAID SANJAY PARTHASARATHY A MICROSOFT SENIOR PRODUCT MANAGER IN REDMOND WASH TELEVISION WILL CERTAINLY BE ONE OF THOSE WAYS INITIAL VERSIONS OF THE CABLE CONVERTER BOX KEY TO THE TRIO'S SYSTEM WILL CONTAIN INTEL'S 386 MICROPROCESSORS WHICH ARE USED AS THE BRAINS OF MANY PERSONAL COMPUTERS THE BOXES WILL ALSO CONTAIN A VARIATION OF MICROSOFT'S WINDOWS SOFTWARE ALSO USED IN PERSONAL COMPUTERS THAT WOULD ALLOW A TELEVISION HOOKED TO THE CABLE BOX TO SHOW ON ITS SCREEN A MENU OF COMMANDS THAT WOULD BE CONTROLLED BY A REMOTE CONTROL DEVICE THE COMPANIES EXPECT THE FIRST VERSIONS OF THE CONVERTER TO BE AVAILABLE IN MID1994 THE CONVERTERS ARE EXPECTED TO COST ABOUT 300 EACH AND WILL BE MADE AVAILABLE FROM CABLE OPERATORS GENERAL INSTRUMENT SAID A CONVERTER BASED ON AN OLDER ANALOG TECHNOLOGY THAT WILL RECEIVE SOME SERVICES WILL BE AVAILABLE LATE THIS YEAR AT A SUBSTANTIALLY LOWER PRICE THE COMPANY SAID INTEL IS BASED IN SANTA CLARA CALIF ACCORDING TO GENERAL INSTRUMENT CHICAGO THE CONVERTER BOX WILL RECEIVE DATA THROUGH CABLE LINES AND WILL TRANSMIT RESPONSES FROM VIEWERS BACK TO SERVICE PROVIDERS EITHER THROUGH A TELEPHONE LINE OR THROUGH THE CABLE LINE DEPENDING ON HOW PARTICULAR CABLE OPERATORS ARE OUTFITTED GENERAL INSTRUMENT SAID EACH CABLE OPERATOR WILL DETERMINE THE FEES FOR USING THE SYSTEM WHICH MAY INCLUDE INCREASED SUBSCRIBER RATES AND INDIVIDUAL SERVICE CHARGES IN ORDER FOR THE SYSTEM TO WORK A COMPLEX INFRASTRUCTURE WHICH INCLUDES SERVICES PROVIDERS AND CABLE OPERATORS WITH SPECIAL EQUIPMENT NEEDS TO BE PUT IN PLACE PUNDITS OF INTERACTIVE TELEVISION PREDICT THAT THE NEW TECHNOLOGY WILL LEAD TO REVOLUTIONARY CHANGES IN A VARIETY OF DIFFERENT AREAS INCLUDING SHOPPING ADVERTISING PUBLISHING AND EVEN VOTING WHAT IS STILL UNCLEAR IS WHETHER CONSUMERS WANT OR WILL PAY FOR A NEW TECHNOLOGY THAT WILL ALLOW THEM TO DO SOME THINGS MORE CONVENIENTLY BUT WHICH WILL ALSO TIE THEM MORE CLOSELY TO THEIR TELEVISION SETS ALREADY SEVERAL BIG COMPANIES HAVE BEEN DEVELOPING THEIR OWN SYSTEMS TARGETED AT THE INTERACTIVE TELEVISION MARKET INCLUDING INTERNATIONAL BUSINESS MACHINES CORP HEWLETTPACKARD CO GTE CORP AND TIME WARNER INC THERE IS AN ENORMOUS AMOUNT OF LOOSE MONEY CHASING AN UNDEFINED MARKET SAID MARK STAHLMAN PRESIDENT OF NEW MEDIA ASSOCIATES A MEDIA CONSULTING COMPANY 9304280082 930428 RULE OF LAW HOW TO AVOID ANOTHER LAWRENCE WALSH BY ROBERT S BENNETT DESPITE LAWRENCE WALSH'S MISDIRECTED ZEAL IN HIS UNJUSTIFIED PROSECUTION OF CASPAR WEINBERGER I NEVERTHELESS BELIEVE THAT THE USE OF AN INDEPENDENT COUNSEL MAY BE APPROPRIATE IN CERTAIN RARE CASES FOR EXAMPLE APPOINTMENT OF AN INDEPENDENT COUNSEL MIGHT BE NECESSARY FOR PUBLIC ACCEPTABILITY OF AN INVESTIGATION OF A PRESIDENT WHERE THERE IS A RATIONAL BASIS TO BELIEVE HE HAS COMMITTED A CRIME THAT SAID THE INDEPENDENT COUNSEL LAW THAT JUST EXPIRED PRESENTS SERIOUS PROBLEMS PROBLEMS THAT WERE REFLECTED IN MR WALSH'S PROSECUTION OF MR WEINBERGER WHOM I REPRESENTED THE LEGISLATION REAUTHORIZING THE INDEPENDENT COUNSEL STATUTE THAT APPEARS HEADED FOR PASSAGE IN CONGRESS THIS SPRING MAKES ONLY COSMETIC CHANGES AND DOES NOT ADDRESS THE FUNDAMENTAL PROBLEMS THE FAILURE TO SELECT QUALIFIED INDIVIDUALS AS INDEPENDENT COUNSEL AND STAFF AND THE UNACCOUNTABLE POWER EXERCISED BY THE INDEPENDENT COUNSEL MR WALSH AND SOME MEMBERS OF HIS STAFF WERE INEXPERIENCED IN COMPLEX WHITECOLLAR MATTERS AND CONSEQUENTLY EXERCISED POOR JUDGMENT AS PROSECUTORS MR WALSH MADE THE WEINBERGER CASE HIS FLAGSHIP CASE NOT BECAUSE IT WAS HIS MOST IMPORTANT CASE ON THE MERITS BUT BECAUSE HE INTENDED TO USE IT TO REHABILITATE HIS OFFICE AFTER ALL ITS SIGNIFICANT CONVICTIONS WERE REVERSED AND TO PROVE HIS UNSHAKABLE BELIEF THAT THERE WAS A CONSPIRACY AT THE HIGHEST LEVELS OF GOVERNMENT TO COVER UP THE IRANCONTRA MATTER EXCESSIVE ZEAL AND LACK OF PERSPECTIVE WARPED MR WALSH'S JUDGMENT IF HE TRULY BELIEVED THAT THE FORMER SECRETARY OF DEFENSE COMMITTED SERIOUS CRIMES PERJURED HIMSELF ENTERED INTO A CONSPIRACY LIED TO CONGRESS AND LIED TO THE INDEPENDENT COUNSEL HOW IN GOOD CONSCIENCE COULD HE HAVE OFFERED A MISDEMEANOR PLEA WHEN I TOLD MR WALSH THAT MR WEINBERGER WOULD NOT ADMIT WRONGDOING HE SAID WE CAN WORK OUT THE LANGUAGE AND TO ENCOURAGE A DISPOSITION INDICATED HE HAD NO DESIRE TO SEE MR WEINBERGER GO TO JAIL OF COURSE HE MADE IT CLEAR THAT IF NO SUCH DEAL WERE ACCEPTED MR WEINBERGER WOULD BE INDICTED FOR SEVERAL FELONIES IN THE WEINBERGER CASE MR WALSH'S LACK OF PROSECUTORIAL JUDGMENT WAS EXACERBATED BY HIS STAFF'S INEXPERIENCE RESULTING IN LEGALLY DEFECTIVE CHARGES THUS FOR EXAMPLE WE WERE ABLE TO OBTAIN DISMISSAL OF THE PRINCIPAL COUNT IN THE FIRST INDICTMENT AGAINST MR WEINBERGER OBSTRUCTION OF CONGRESS THE INFAMOUS SECOND INDICTMENT RETURNED ONLY A FEW DAYS BEFORE THE PRESIDENTIAL ELECTION WAS DEFECTIVE ON STATUTE OF LIMITATIONS GROUNDS THE SECOND MAJOR FAILING OF THE INDEPENDENT COUNSEL STATUTE IS THAT IT GIVES THE INDIVIDUAL WHO OCCUPIES THE POSITION TREMENDOUS UNACCOUNTABLE POWER MR WALSH HAD AUTHORITY TO INVESTIGATE WHETHER ANY GOVERNMENT OFFICIAL VIOLATED ANY FEDERAL CRIMINAL LAW RELATING IN ANY WAY TO THE SALE OF ARMS TO IRAN OR THE PROVISION OF SUPPORT FOR THE CONTRAS SINCE 1984 UNDER THIS EXCEEDINGLY BROAD JURISDICTION MR WALSH CONTINUED HIS INVESTIGATION FOR MORE THAN SIX YEARS LONGER THAN ALL BUT ONE OR TWO ATTORNEYS GENERAL HAVE SERVED NEITHER THE JUSTICE DEPARTMENT NOR ANY US ATTORNEY WOULD HAVE AUTHORIZED ANYTHING LIKE THE EXPENDITURE OF RESOURCES MORE THAN 40 MILLION IN DIRECT COSTS AND MILLIONS MORE IN SUPPORT IN CASES SO LACKING IN PROSECUTORIAL MERIT FOR MR WALSH THERE WAS SIMPLY NO POINT OF DIMINISHING RETURNS WHERE THE REHABILITATION OF HIS OFFICE'S REPUTATION WAS CONCERNED THE LACK OF ACCOUNTABILITY LACK OF PROSECUTORIAL PERSPECTIVE AND VIRTUALLY UNLIMITED JURISDICTION AND RESOURCES CREATED AN ARROGANCE THAT BRED CONTEMPT FOR THE RULES THE GENERAL ACCOUNTING OFFICE CONCLUDED THAT MR WALSH'S OFFICE VIOLATED NUMEROUS REGULATIONS ON GOVERNMENT SPENDING AND TRAVEL ALLOWANCES ALL THESE ERRORS AND ABUSES CONTRIBUTED GREATLY TO THE PARDON EFFORT MAKE NO MISTAKE ABOUT IT THE PERSON MOST RESPONSIBLE FOR MR WEINBERGER'S PARDON WAS NOT PRESIDENT BUSH BUT MR WALSH YES THE INDEPENDENT COUNSEL STATUTE SHOULD BE REAUTHORIZED BUT THE APPOINTMENT OF AN INDEPENDENT COUNSEL MUST BE THE EXCEPTION NOT THE RULE AND HIS POWER MUST BE LIMITED BEFORE A CASE EVEN EXISTS A ROSTER OF ATTORNEYS WITH SUBSTANTIAL EXPERIENCE AS PROSECUTORS DEFENSE LAWYERS AND PUBLIC DEFENDERS SHOULD BE ESTABLISHED FROM WHICH THE INDEPENDENT COUNSEL WILL BE CHOSEN THE APPELLATE AND TRIAL JUDGES FROM EACH JUDICIAL CIRCUIT SHOULD NOMINATE ATTORNEYS THE CRITERIA SHOULD BE DESIGNED TO LEAD TO THE SELECTION OF PEOPLE OF EXPERIENCE IN COMPLEX CRIMINAL MATTERS IN ADDITION AT LEAST HALF OF AN INDEPENDENT COUNSEL'S OFFICE SHOULD BE SELECTED FROM THE JUSTICE DEPARTMENT US ATTORNEY'S OFFICE OR PUBLIC DEFENDERS THESE PROFESSIONALS WOULD HAVE LITTLE DIFFICULTY INVESTIGATING A HIGHLEVEL OFFICIAL IN ADDITION TO SAVING MONEY BY DETAILING GOVERNMENT EMPLOYEES FROM THEIR POSITIONS THERE WOULD BE SOME ASSURANCE THAT PROSECUTORIAL GUIDELINES WOULD BE FOLLOWED AND THAT PEOPLE WHO UNDERSTAND THE LIMITS OF THE CRIMINAL PROCESS WILL BE INVOLVED IN THE DECISION MAKING THE GROUP IN THE EXECUTIVE BRANCH TO WHICH THE STATUTE APPLIES SHOULD BE NARROWED TO COVER ONLY THE PRESIDENT VICE PRESIDENT CABINET AND HIGHESTLEVEL WHITE HOUSE OFFICIALS BUT THE STATUTE SHOULD ALSO COVER CERTAIN MEMBERS OF CONGRESS BECAUSE INVESTIGATIONS OF AN ADMINISTRATION'S FRIENDS OR FOES IN CONGRESS COULD RAISE THE SAME PUBLIC CREDIBILITY CONCERNS THAT JUSTIFY APPOINTMENT OF INDEPENDENT COUNSEL FOR EXECUTIVEBRANCH OFFICIALS AN INDEPENDENT COUNSEL SHOULD BE APPOINTED ONLY IF THE ATTORNEY GENERAL DETERMINES THAT A RATIONAL BASIS EXISTS TO BELIEVE THAT A CRIME WAS COMMITTED NOT THAT THERE ARE REASONABLE GROUNDS TO BELIEVE FURTHER INVESTIGATION IS WARRANTED AS WAS THE CASE UNDER THE OLD STATUTE THE DURATION OF AN INDEPENDENT COUNSEL'S APPOINTMENT SHOULD BE LIMITED TO THE TERM OF A GRAND JURY 18 MONTHS THE SUBJECT MATTER OVER WHICH THE INDEPENDENT COUNSEL HAS JURISDICTION MUST ALSO BE LIMITED THE SUBJECT MATTER AND POTENTIAL VIOLATIONS OF LAW SHOULD BE SPECIFIED IN THE ATTORNEY GENERAL'S REQUEST FOR APPOINTMENT OF AN INDEPENDENT COUNSEL THE AUTHORITY OF THE INDEPENDENT COUNSEL TO ISSUE PUBLIC REPORTS DURING HIS INVESTIGATION OR AFTER IT IS CONCLUDED MUST BE ELIMINATED PROSECUTORS DO NOT USE THEIR OFFICES AS A FORUM TO PROCLAIM THEIR VIEWS ON HISTORY OR TO PASS PERSONAL JUDGMENT ON INDIVIDUALS' CONDUCT AND INDEPENDENT COUNSEL SHOULD BE NO DIFFERENT FINALLY THE GOOD CAUSE STANDARD BY WHICH THE ATTORNEY GENERAL MAY TERMINATE AN INDEPENDENT COUNSEL SHOULD BE DEFINED TO INCLUDE FAILURE OF AN INDEPENDENT COUNSEL TO FOLLOW JUSTICE DEPARTMENT GUIDELINES VIOLATIONS OF CANONS OF ETHICS OR A DETERMINATION BY THE ATTORNEY GENERAL THAT ANY REMAINING INVESTIGATION CAN BE CONDUCTED BY THE JUSTICE DEPARTMENT WITH SUCH SAFEGUARDS IN PLACE WE SHOULD BE ABLE TO AVOID ANOTHER DEBACLE LIKE THE IRANCONTRA INVESTIGATION MR BENNETT IS A WASHINGTON ATTORNEY 9304280081 930428 LETTERS TO THE EDITOR THE SLEEP OF REASON IN AN EXCORIATING HINDSIGHT RANT BONFIRE OF THE VANITIES EDITORIAL PAGE APRIL 21 FRAGRANT WITH THE FAINT SMELL OF WHAT NIETZSCHE CALLED RESSENTIMENT A FEELING OF BITTER ANGER OR RESENTMENT TOGETHER WITH A SENSE OF FRUSTRATION AT BEING POWERLESS TO EXPRESS THIS HOSTILITY OVERTLY CHARLES J SYKES SAVAGES WHAT HE CALLS THE CULT OF EXPERTISE USING AS HIS STRAW MAN DU JOUR THE EVENTS AND AFTERMATH AT THE BRANCH DAVIDIAN COMPOUND IN WACO TEXAS ONE WONDERS WHAT MR SYKES WOULD PROPOSE SHOULD ANOTHER SUCH EQUALLY DIFFICULT AND COMPLEX SITUATION PRESENT ITSELF BYPASS EXPERTS AND DEPEND ON THE COLLECTIVE WISDOM OF THE PEOPLE BY TAKING A PUBLIC OPINION POLL PERHAPS OR MAYBE WE OUGHT TO BYPASS EXPERT OPINION AND JUST DEPEND ON PRACTICAL COMMON SENSE NOW THERE'S A STELLAR THOUGHT AND THE LOGICAL CONSEQUENCE OF MR SYKES'S REASONING THERE WOULD BE LESS CHANCE OF SCREWING UP IF ONLY WE EMPLOYED THE GOOD OLDFASHIONED PRACTICAL COMMON SENSE OF NONEXPERT FOLK IN SUCH SITUATIONS SAY LIKE THE ORDINARY WACO COPS WHOSE VIEWS MR SYKES FOUND NOTABLY ABSENT AS THE WACO POLICE HAD LONG AGO BEEN SHUT OUT OF THE ACTION WELL IT'S SURELY NOT FOR NOTHING THAT COMMON SENSE THAT PRODIGY OF THE HUMAN INTELLECT HAS BEEN DEFINED ALBEIT BY A MEMBER OF THAT LOATHSOME EXPERT CLASS ALBERT EINSTEIN AS NOTHING MORE THAN A DEPOSIT OF PREJUDICES LAID DOWN IN THE MIND PRIOR TO AGE 18 AND IF ONE WOULD ARGUE AS BY IMPLICATION DOES MR SYKES THAT PRACTICAL COMMON SENSE IS JUST WHAT WAS ABSENT IN THE WACO AFFAIR I WOULD REMIND HIM THAT A KEY FACTOR IN THE DECISION TO GO AHEAD WITH THE ACTION THAT LED TO THAT FIERY MASS SUICIDE WAS THE PRACTICAL COMMON SENSE NOTION THAT THE MATERNAL INSTINCT OF THE MOTHERS OF THE CHILDREN IN THE COMPOUND MADE ANY MASS SUICIDE HIGHLY IMPROBABLE MR SYKES SHOULD HAVE DIRECTED HIS IRE AT THE PARTICULAR EXPERTS INVOLVED IN THIS MANGLED AFFAIR AS WELL AS AT THE BUREAUCRACY THAT SELECTED THEM RATHER THAN AT EXPERTISE AND EXPERT OPINION IN GENERAL WITHOUT WHICH WE IN THIS HYPERFAST HYPERCOMPLEX AGE WOULD FIND OURSELVES AT THE MERCY OF A DANGEROUSLY PARALYZING CHAOS REGARDING YOUR APRIL 20 EDITORIAL WEIRD IN WACO AND SUBSEQUENT ESSAYS ON THE MASSACRE IN WACO IT MIGHT BE INSTRUCTIVE TO RECALL GOYA'S REMARK EL SUENO DE LA RAZON PRODUCE MONSTRUOS INDEED THE SLEEP OF REASON DOES BRING FORTH MONSTERS AND THIS IS NO LESS TRUE FOR THE POOR AND IGNORANT THAN FOR THE PRIVILEGED AND UNIVERSITYTRAINED YOUR EDITORIAL MISSED THE POINT THE WACO DISASTER WASN'T ABOUT WEIRDOS OR WHO GETS A SPOT ON OPRAH OR MATURE FAITH INSTEAD OF SNEERING AT THE BRANCH DAVIDIANS FOR WHOM I HAVE NO LOVE YOU SHOULD BE ASKING SINCE WHEN ARE HERESY AND ALLEGED WEAPONS VIOLATIONS CAPITAL CRIMES THE WHOLE INCIDENT REEKS OF DISINFORMATION FROM THE FLIMSY WEAPONS CHARGES THAT SUPPOSEDLY JUSTIFIED THE STANDOFF TO THE REPORTS OF CHILD ABUSE TODAY'S EQUIVALENT OF ACCUSATIONS OF WITCHCRAFT WHICH JUSTIFY ANY FORCE OR VIOLATION OF CIVIL AND CONSTITUTIONAL RIGHTS WHAT YOU SHOULD HAVE CALLED FOR IS AN INVESTIGATION BY CONGRESS STARTING WITH ATTORNEY GENERAL JANET RENO ATTORNEY GENERAL RENO RATIONALIZED THE TANK ATTACK ON THE GROUNDS THAT THE FBI HOSTAGE NEGOTIATORS WERE TIRED POOR BABIES SHE ALSO FEARED UNSANITARY CONDITIONS THAT WOULD HARM THE CHILDREN HOW SANITARY WAS IT TO SPRAY TEAR GAS INTO THE BUILDINGS INHABITED BY THOSE CHILDREN FOR WHOM NO GAS MASKS REPORTEDLY EXISTED AT ANOTHER POINT SHE ALLEGED PHYSICAL AND SEXUAL ABUSE OF CHILDREN WAS OCCURRING BUT SHE OFFERED NO PROOF AT A TIME WHEN LAWYERS REAP LITTLE RESPECT AND EVEN LESS POPULARITY JANET RENO'S PLAINSPOKEN HONESTY AND FORTHRIGHT ACCEPTANCE OF RESPONSIBILITY FOR THE OPERATION AGAINST THE BRANCH DAVIDIANS RENO'S FORTHRIGHT THE BUCK STOPS WITH ME' BOOSTS HER STATUS IN WAKE OF DAVIDIAN FIASCO APRIL 21 RESTORE MY PRIDE IN OUR PROFESSION HOW REFRESHING TO HAVE A CABINET MEMBER WHO ABJURES SPIN CONTROL TO HER BOSS WHOSE EQUIVOCATIONS RAISE NEW DOUBTS ABOUT HIS LEADERSHIP AND INTEGRITY I WOULD PARAPHRASE TREASURY SECRETARY LLOYD BENTSEN MR PRESIDENT YOU'RE NO HARRY TRUMAN WHY WAS THERE A RAID AT ALL WERE THE BRANCH DAVIDIANS VIOLENT DID THEY HARM OR THREATEN THEIR NEIGHBORS NO THEY HAD ECCENTRIC BELIEFS AND SO WERE TO A COUNTRY AFRAID OF THE WORD CULT IMPLICITLY DANGEROUS STOCKPILING FANCY WEAPONS CAN BE PARANOID BUT NOT NECESSARILY EVIL IF YOU FELT THE GOVERNMENT WERE OUT TO GET YOU YOU WOULD ALSO PREPARE A DEFENSE NOT WITH REVOLVERS BUT WITH THE BEST POSSIBLY ILLEGAL WEAPONRY YOU COULD AFFORD WOULD YOU BE MORALLY WRONG MISGUIDED PERHAPS ON THE WRONG SIDE OF THE LAW YES MORALLY WRONG NO WOULD YOU BE DANGEROUS NOT IF LEFT ALONE NOT IF APPROACHED BY A GOVERNMENT AGENT BUT SURELY IF ATTACKED BY A BATTALION WERE THE BRANCH DAVIDIANS WRONG AT LEAST IN THE BELIEF THAT THEY SHOULD ARM THEMSELVES AGAINST IMPENDING ATTACK THEY WERE PROVED UNFORTUNATELY TO BE VERY RIGHT THE GREATEST TRAGEDY WAS THE DEATH OF THE INNOCENT CHILDREN THE BLAME FOR THIS LIES SOLELY WITH DAVID KORESH AND THE CHILDREN'S PARENTS TO EVEN CONSIDER LAYING THE BLAME ON THE FBI JANET RENO OR PRESIDENT CLINTON FOR THIS SELFIMMOLATION IS AN INSULT TO THE INTELLIGENCE OF THE AMERICAN PUBLIC ONLY THE NEWS MEDIA COULD GET IT SO TWISTED PEOPLE ARE BEING SHOT DOWN IN THE STREETS BY THUGS BUT IF A NONVIOLENT RELIGIOUS SECT ARMS ITSELF FOR PROTECTION THEN THE GOVERNMENT ATTACKS AND IN A SENSE EXECUTES THEM IN A LARGER AND TERRIFYING SENSE THIS ATTACK ON A RELIGIOUS SECT THAT JUST WANTED TO BE LEFT ALONE POINTS OUT HOW FAR THIS GOVERNMENT HAS GONE FROM THE FOUNDING FATHERS' TENETS OF LIMITED GOVERNMENT MR CLINTON AND MS RENO ARE LUCKY THE DEMOCRATS HAVE A MAJORITY IN CONGRESS IF THIS MONSTROUS MISJUDGMENT HAD OCCURRED UNDER MESSRS REAGAN OR BUSH ARTICLES OF IMPEACHMENT WOULD HAVE BEEN DRAWN UP BY THE END OF THE WEEK MY CONCERN IS WITH THOSE WHO PUSH FORWARD THE NOTION THAT FAITH IS SOME SORT OF TRUNCATED BEAST WITH WHICH REASON CANNOT LIVE IT IS PRECISELY THIS BREAK IN THINKING THAT ALLOWS A DAVID KORESH TO ACT WITHOUT A CHORUS OF CRITICS FOLLOWING WITH FOOL AND HERETIC ASSUMING THAT THERE IS SOME INVISIBLE LEVER PRYING REASON APART FROM FAITH GIVES LUNATICS THE ROPE WITH WHICH THEY SEEK TO HANG THEMSELVES AND OTHERS SHOOTING CLASSICAL METAPHYSICS IN THE FOOT AND TELLING STUDENTS THAT THE PHILOSOPHY DEPARTMENT AND THE NEARBY SEMINARY HAVE NOTHING IN COMMON LIMITS OUR ABILITY TO SHAPE AN IMPORTANT CONVERSATION REASON AND GOD ARE GOOD FRIENDS HOW ELSE COULD IT BE WHY ASSUME OTHERWISE MERELY BECAUSE PEOPLE HAVE FAULTY FAITH AND REASON DOES NOT MEAN THAT FAITH AND REASON SHOULDN'T ENJOY A HEALTHY MARRIAGE WE AGREE THAT DAVID KORESH WAS A FOOL NOW I HOPE THE DISCUSSION BEGINS AROUND THE QUESTION OF WHAT IS A FOOL THERE IS A TRAGIC PAUSE IN THE AMERICAN CONVERSATION TO POSE THIS REGRETTABLE QUESTION NOT ONLY WERE THE MEDIA AS A WHOLE BLOWING PRESIDENT CLINTON'S INITIAL COMMENTS ON WACO OUT OF CONTEXT AND PROPORTION BUT YOUR POSITION IS ABSOLUTELY ASTOUNDING IN DEFENSE OF JANET RENO REVIEW & OUTLOOK APRIL 21 HOW CAN YOU POSSIBLY EXPECT THE PRESIDENT TO DICTATE THE POLICY AND ACTIONS OF A LAW ENFORCEMENT AGENCY DOES THE PRESIDENT HEAD THE FBI OR THE BUREAU OF ALCOHOL TOBACCO AND FIREARMS NO WAS THE PRESIDENT IN WACO NOT THAT I EVER HEARD I THINK THE PRESIDENT'S MESSAGE IN THE INITIAL NEWS CONFERENCE WAS SIMPLY ENFORCING A POPULAR MANAGEMENT CREDO TO EMPOWER YOUR EMPLOYEES HE SUPPORTED THE ATTORNEY GENERAL AND THE DECISION TO TAKE ACTION AGAINST THE BRANCH DAVIDIAN COMPOUND IF THE PRESIDENT CHANGED HIS MESSAGE IN LATER PRESS STATEMENTS IT WAS AS A REACTION TO A VINDICTIVE PRESS THAT WAS TRYING TO FIND A SCAPEGOAT FOR THE DEATHS OF INNOCENTS WITHIN THE CULT YOUR ARGUMENT IS CAST ONLY FURTHER INTO DOUBT BY COMPARISONS OF THE WACO INCIDENT WITH THE BAY OF PIGS THE LATTER WAS A MILITARY OPERATION AGAINST A MILITARY THREAT TO THE US AND THE PRESIDENT WAS AND SHOULD BE RESPONSIBLE FOR THAT KIND OF ACTION AND ITS RESULTS WACO WAS AN ISOLATED INCIDENT OF EXTREMISTS WHO DEFIED THE LAW AND MURDERED BATF AGENTS THE GOVERNMENT'S TARGET WAS A SINGLE PERSON SUSPECTED OF VIOLATING FIREARMS LAWS YET THE BATF FIRST RAIDED THE COMPOUND IN FEBRUARY ON A SUNDAY MORNING WHEN THE WOMEN AND CHILDREN WERE PRESENT SOME OF THE RELEASED CHILDREN SAID THEY SAW BULLETS TEARING THROUGH THE WALLS OF THEIR HOME THEN FOR WEEK AFTER WEEK THE FBI BOMBARDED THEM WITH EARPIERCING SOUNDS OF RABBITS BEING SLAUGHTERED SCREAMING BABIES TRAINS AND DENTAL DRILLS FINALLY MR CLINTON AND MS RENO AUTHORIZED THE FBI TO CRASH INTO THEIR FLIMSY HOME WITH 58TON TANKS AND SPRAY TEAR GAS AT THE CHILDREN AND TWO PREGNANT WOMEN SHORTLY BEFORE THE CHILDREN BURNED TO DEATH AN FBI SPOKESMAN APPEARED ON TV AND CALMLY SAID GAS MASKS DON'T FIT BABIES AND CHILDREN 9304280080 930428 WAY OF ALL FLASH THE DECLINE OF COUTURE IS SEEN IN THE CLOSING OF A NEW YORK SALON FASHION FIXTURE MARTHA OUT OF STYLE BUT IN CHAPTER 11 LOST A WEALTHY CLIENTELE BUYING A CHANEL AT THE MALL BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL BACK WHEN CLOTHES REALLY MATTERED SHOPPING FOR VERY RICH WOMEN MIGHT WELL HAVE MEANT A DAY AT MARTHA ON PARK AVENUE IT WAS IN MARTHA PHILLIPS'S OPULENT SALON THAT BROOKE ASTOR AND MARJORIE MERRIWEATHER POST FOUND SOME OF THE GOSSAMER BALENCIAGAS AND VALENTINOS THAT CARRIED THEM THROUGH THE SOCIAL SEASON AND ONTO THE BESTDRESSED LIST A 200000AYEAR TAB AT MARTHA HARDLY RAISED EYEBROWS IN THE MID1980S A SAUDI OIL MAN SPENT 140000 IN ONE SHOPPING SPREE FOR HIS SEVERAL WIVES EVEN MARTHA'S SALESHELP TOOK HOME 100000 IN GOOD YEARS IN SALARIES AND COMMISSIONS THE GOOD YEARS ARE GONE AFTER NEARLY SIX DECADES OF SUCCESS THAT BEGAN AT THE DEPTHS OF THE DEPRESSION THE GRANDE DAME OF MANHATTAN COUTURE SALONS CLOSED LAST SATURDAY PRIVATELY HELD MARTHA INC WHICH FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION IN DECEMBER CONTINUES TO OPERATE ITS TWO REMAINING SALONS IN PALM BEACH AND BAL HARBOUR FLA UNDER A COURTAPPROVED REORGANIZATION PLAN BUT THE COMPANY'S FLAGGING FORTUNES ARE YET ANOTHER REMINDER THAT THE HEYDAY OF HIGH FASHION IS OVER PERFECTION WAS MARTHA'S HALLMARK EXQUISITE FRENCH SEAMS HANDROLLED HEMS AND BOUND BUTTONHOLES GOWNS THAT LOOKED AS BEAUTIFUL INSIDEOUT AS THEY DID ON A HANGER THESE WERE CLOTHES AS OBJETS D'ART WITH PRICES TO MATCH UP TO THE EXACTING STANDARDS OF HIGH SOCIETY'S OLD GUARD BUT TASTES HAVE CHANGED AND THE MARKET FOR 8000 LUNCHEON SUITS AND 12000 GOWNS ISN'T WHAT IT ONCE WAS TODAY'S PACESETTING SOCIALITES AND CELEBRITIES ARE AS APT TO FLOUT FASHION DICTATES AS TO FOLLOW THEM THEY ARE INDIFFERENT TO METICULOUS DETAILING AND AREN'T INCLINED TO SPEND LANGUID AFTERNOONS IN GILDED FITTING ROOMS JOAN WEINSTEIN WHO OWNS ULTIMO LTD A 23YEAROLD SALON IN CHICAGO SAYS TODAY YOUNGER PEOPLE DON'T CARE IF THEY CAN TURN AN ITEM INSIDE OUT THEY HAVE TERRIFIC BODIES AND THEY DON'T NEED TO SPEND A TON ON CLOTHES EUROPEAN FASHION HOUSES FROM CHANEL AND GIVENCHY TO CHRISTIAN DIOR HAVE LONG SINCE OUTGROWN SMALL SALONS LIKE MARTHA THAT HELPED THEM GAIN A FOLLOWING IN THE US TODAY THEY HAVE BECOME MULTITIERED MARKETINGHEAVY CONGLOMERATES AND RETAILERS IN THEIR OWN RIGHT WEALTHY WOMEN SEEKING STATUS LABELS NEED VENTURE NO FURTHER THAN A FANCY MALL THE EFFECTS HAVE BEEN DEVASTATING AT THE HIGHEST REACHES OF FASHION ADOLFO THE CUBANBORN DESIGNER WHO CREATED SUITS FOR NANCY REAGAN IS CLOSING THE COUTURE END OF HIS BUSINESS THIS WEEK AFTER 25 YEARS AND WILL CONCENTRATE ON HIS LICENSED GOODS HANDBAGS JOGGING ATTIRE AND SUCH ACROSS THE COUNTRY A NUMBER OF VENERABLE DRESS SALONS CLOSED LAST YEAR INCLUDING LORETTA BLUM IN DALLAS AMEN WARDY IN BEVERLY HILLS AND MARTHA'S LONGTIME ARCHRIVAL SARA FREDERICKS OF BOSTON MARTHA'S SECONDLARGEST CREDITOR DESIGNER JAMES GALANOS TO WHOM IT OWES 300650 CONTINUES TO RUN A SMALL BUT PROFITABLE COUTURE HOUSE IN LOS ANGELES AFTER 41 YEARS IN BUSINESS BUT HIS EVENTUAL RETIREMENT WILL MARK THE END OF THE GALANOS LABEL WHICH HE SAYS WILL BE RETIRED WITH HIM IT'S HARDER TO MAKE A GO OF IT TODAY MR GALANOS SAYS THE MARKET IS MASS CLOTHES FOR RICH PEOPLE DON'T SELL PROFITABLY MARTHA'S TOTAL LIABILITIES AMOUNT TO 46 MILLION INCLUDING 303540 TO CHANEL EVEN IN PARIS THE MIGHTY CHAMBRE SYNDICALE THE TRADE GROUP THAT HANDS DOWN RIGID OPERATING RULES FOR COUTURE HOUSES IS SEEN AS INCREASINGLY IRRELEVANT BY ICONOCLASTIC YOUNG DESIGNERS LIKE JEANPAUL GAULTIER AND THIERRY MUGLER WHO ARE WINNING RAVE REVIEWS FOR HIP COLLECTIONS AND STREET CHIC RATHER THAN COUTURE AT MOST EUROPEAN FASHION HOUSES COUTURE IS BEING UPHELD ONLY TO SAVE FACE SAYS RICHARD MARTIN CURATOR OF THE COSTUME INSTITUTE AT THE METROPOLITAN MUSEUM OF ART IT WILL GO ON FOR A WHILE BUT THE LOSSES ARE ENORMOUS THE BUSINESS OF FRENCH COUTURIER CHRISTIAN LACROIX WHOSE POUF BECAME THE PARTY DRESS OF THE 1980S HAS RACKED UP ABOUT 40 MILLION IN LOSSES SINCE THE COUTURE HOUSE OPENED IN 1987 AT ITS PEAK JUST BEFORE THE 1987 WALL STREET CRASH THE ENTIRE US COUTURE MARKET PROBABLY AMOUNTED TO NO MORE THAN 300 MILLION RETAILERS ESTIMATE IT NOW STANDS AT ABOUT 200 MILLION OF THE 645 BILLION WOMEN'S RETAILAPPAREL BUSINESS AS MUCH AS ANYONE ELSE MARTHA PHILLIPS DESERVES CREDIT FOR SELLING AMERICANS ON COUTURE THE DAUGHTER OF A BROOKLYN TAILOR MISS MARTHA AS SHE IS KNOWN TO CLIENTS AND STAFF ALIKE PERCEIVED HOW EAGER RICH AMERICANS OF THE POSTWAR ERA WERE TO IMITATE EUROPEAN ARISTOCRACY AND HER SALON WITH ITS CHANDELIERED FOYER BLUSHPINK WALLS AND FLATTERING PEACH LIGHTING WAS A CONSCIOUS ATTEMPT TO RECREATE A PARISIAN ATELIER AN ACCOMMODATING VENDEUSE GREETED WEALTHY LADIES BY NAME AND SAW TO IT THAT THEY NEVER HAD TO RUMMAGE THROUGH RACKS OF CLOTHES GOWNS WERE WHISKED OUT FROM THE BACK ROOM THREE AT A TIME AND PRESSED BETWEEN FITTINGS ONLY TWICE A YEAR DID GOWNS GO OUT ON RACKS DURING A GIVEAWAY SALE IN WHICH 7000 FROCKS COULD BE HAD FOR A MERE 4550 MARTHA DISAPPEARED FROM THE STORE DURING SALES BECAUSE SHE COULDN'T BEAR TO WATCH THE CUSTOMERS HANDLE THE MERCHANDISE RECALLS MISS NADINE MELVIN JOSEPH A SALESWOMAN FOR 23 YEARS SOMETIMES MRS PHILLIPS WOULD EVEN PULL FAVORITE GARMENTS OFF SALE RACKS RETURNING THEM TO FULL PRICE AS A RESULT WHEN MERCHANDISE FROM THE MANHATTAN SALON WAS LIQUIDATED IN RECENT WEEKS SOME OF IT DATED BACK TO 1987 IT WAS DAUNTING TO WALK THROUGH THAT DOOR RECALLS AGNES ASH A WRITER WHO HAS CHRONICLED PALM BEACH SOCIETY FOR MAGAZINES INCLUDING W AND TOWN & COUNTRY IF ONLY BECAUSE OF THE TWO PORCELAIN HOUNDS THAT STOOD GUARD ONCE INSIDE THE CUSTOMER WAS TREATED ROYALLY MARTHA WOULD DO IT ALL MS ASH SAYS SHE'D GO OUT AND BUY YOU A GIRDLE AND SHOES AND EVERYTHING WOMEN WOULD EXPECT IT BUT TO MANY MODERN SHOPPERS THE BOWING AND SCRAPING IS OFFPUTTING JAMEE GREGORY A FORTYISH MANHATTANITE WHO THROWS THE NEW YORK BOTANICAL GARDEN'S SPRING GALA BOUGHT HER WEDDING GOWN AT MARTHA BUT HASN'T BEEN THERE IN YEARS IT'S TOO INTIMIDATING SHE SAYS LIKE MANY YOUNGER WOMEN MS GREGORY IS ALSO UNMOVED BY THE ARTISTRY OF COUTURE SHE PREFERS CLOTHES BY SOME OF THE YOUNG DESIGNERS WHO ARE FUN AND AMUSING CHESSY RAYNER WHO WAS ONCE A FRONTROW REGULAR AT THE PARIS COUTURE SHOWS NO LONGER BOTHERS TODAY MY STYLE IS TOTALLY PAREDDOWN AND NONGLITZ SAYS THE MANHATTAN SOCIALITE AND DECORATOR WHEN SHE IS IN THE MARKET FOR COUTURE MS RAYNER LOOKS FOR BARGAINS WITH HER CONNECTIONS SHE IS ABLE TO BYPASS STORES ALTOGETHER I'M GREAT FRIENDS WITH BILL BLASS AND OSCAR DE LA RENTA AND I SHOP WHOLESALE WITH THEM SHE SAYS EVEN IN PALM BEACH COUTURE IS NO LONGER DE RIGUEUR THOUGH DIEHARDS STILL WEAR JEWELED TIARAS AND FLOWING GOWNS TO THE ANNUAL RED CROSS BALL INFORMALITY IS CREEPING INTO THE REST OF THE SOCIAL CALENDAR THE DRESSY CLOTHES THAT WOMEN USED TO WEAR AREN'T APPROPRIATE ANYMORE SAYS MS ASH THE SOCIETY WRITER TODAY THE NOTION THAT DESIGNERS AND RICH CUSTOMERS CAN DICTATE TASTE HAS BEEN RESOUNDINGLY REJECTED SAYS FASHION HISTORIAN CAROLINE RENNOLDS MILBANK AND WITHOUT RIGID PROTOCOL TO ASPIRE TO SHE ADDS A STORE LIKE MARTHA CAN'T EXIST THAT IS AN ASSESSMENT THAT MARTHA'S OWNERS MRS PHILLIPS AND HER DAUGHTER VOW TO DISPROVE MRS PHILLIPS WHO WON'T DISCUSS HER AGE BUT IS SAID TO BE 94 YEARS OLD AND HER DAUGHTER MISS LYNN MANULIS WHO IS IN HER MID70S ARE NOW TRYING TO REPOSITION THE COMPANY TO APPEAL TO A YOUNGER HIPPER CLIENTELE BUT WITHOUT COMPROMISING STANDARDS IN THE PALM BEACH SALON WHERE MRS PHILLIPS STILL REPORTS TO WORK SIX DAYS A WEEK SHE IS AS EVER SMARTLY ATTIRED MARTHA LIKES THE DRAMA OF SCARVES AND SHE WEARS THEM WITH GREAT PANACHE DECLARES MRS MANULIS SHE WEARS PAULINE TRIGERE SHE WEARS VALENTINO HER BLONDE HAIR IS IN ITS USUAL UPSWEEP MRS PHILLIPS SO PERSONIFIES MARTHA THAT HER PICTURE RATHER THAN SKETCHES OF CLOTHES HAS ALWAYS BEEN FEATURED IN THE STORE'S NEWSPAPER ADS HER DAUGHTER MRS MANULIS HAD A BRIEF CAREER AS A STAGE ACTRESS BEFORE JOINING MARTHA IN THE 1950S AT THE SALON SHE ORIGINATED MARTHA'S FABLED TRUNK SHOWS WHERE DESIGNERS SUCH AS NORMAN NORELL AND ARNOLD SCAASI MADE PERSONAL APPEARANCES AND EVEN PINNED UP HEMS FOR CUSTOMERS WITH A 10000 LOAN FROM HER FATHER PAID BACK WITHIN SIX MONTHS MRS PHILLIPS OPENED HER FIRST MARTHA SHOP IN 1934 SELLING NEW YORK GARMENTDISTRICT VERSIONS OF FRENCH ORIGINALS STARTING AT 100 THE NATION WAS GOING THROUGH HARD TIMES BUT MRS PHILLIPS SET HER SIGHTS ON A MONEYED CLIENTELE IF IT WAS BEAUTIFUL I COULD SELL IT SHE RECALLS HER FIRST SHOP WAS IN A 57TH STREET OFFICE BUILDING WHERE A FELLOW OCCUPANT WAS ANOTHER BUDDING ENTREPRENEUR ESTEE LAUDER ALWAYS MRS PHILLIPS HAD THE SHREWD FORESIGHT TO FOLLOW THE MONEY IN 1948 LONG BEFORE HER SALON MOVED TO PARK AVENUE SHE OPENED ONE OF THE FIRST YEARROUND DRESS SHOPS ON PALM BEACH'S SWANK WORTH AVENUE MRS MANULIS RECALLS THE DAY MARJORIE MERRIWEATHER POST DROPPED IN WITH A SATCHEL FULL OF JEWELS SHE ASKED FOR DRESSES TO MATCH GREEN CHIFFON FOR THE EMERALDS PINK FOR THE RUBIES AND WHITE FOR THE DIAMONDS MARTHA CAME THROUGH FOR HER WHEN YOUR GOAL IS THAT KIND OF DISCRIMINATING CUSTOMER YOU LEARN TO STRETCH YOURSELF TO THE ULTIMATE CAPACITY MRS MANULIS SAYS STANDARDS HAVEN'T SLIPPED SINCE IN PALM BEACH SARA LEE ONE OF THE STORE'S MAIDS SPENDS MOST OF HER DAY IN THE BACK ROOM STUFFING GARMENT SLEEVES WITH TISSUE PAPER SO THEY HANG AS ERECT AS SOLDIERS AT ATTENTION FOR CAMOUFLAGING FIGURE FLAWS MARTHA RELIES ON TAILOR EDDIE KOUTS WHO FOR 40 YEARS HAS SHUTTLED BETWEEN PARK AVENUE AND PALM BEACH IN DOING ALTERATIONS MR KOUTS SAYS SOMETIMES THERE ISN'T A SEAM IN A GARMENT THAT WE HAVEN'T RIPPED APART IT WASN'T UNTIL AFTER WORLD WAR II THAT MRS PHILLIPS ALONG WITH A HANDFUL OF OTHER PRESCIENT AMERICAN RETAILERS BEGAN BUYING DIRECT FROM EUROPEAN COUTURE HOUSES LIKE CHANEL AND BALENCIAGA MARTHA SCOUTED EUROPE FOR NEW UNDISCOVERED TALENT LIKE VALENTINO WHOM THE MOTHERDAUGHTER TEAM MET IN ROME IN 1966 MARTHA AVIDLY PROMOTED THESE UNKNOWNS AND REAPED THE REWARD WHEN DESIGNER LABELS BECAME THE MASSMARKET RAGE IN THE 1970S IN PALM BEACH AFTER HALSTON SHOWED HIS REVOLUTIONARY ULTRASUEDE DRESSES AT MARTHA IN 1972 THE LADIES SPRANG FROM THEIR SEATS AND MOBBED THE DRESSING ROOM IN WHAT MRS MANULIS CALLS A HIGHCLASS RIOT MARTHA'S SALES PEAKED AT ABOUT 20 MILLION IN 1989 AT THE END OF A DECADE IN WHICH A LOT OF NEW WALL STREET MONEY WAS TRYING TO BUY OLDMONEY STATUS AT MARTHA BUT BY THEN THE BUSINESS WAS STARTING TO COME APART AT THE SEAMS DONALD TRUMP HAD TALKED MRS PHILLIPS INTO OPENING A BRANCH IN TRUMP TOWER JUST FIVE MINUTES BY CAB FROM THE PARK AVENUE SHOP THE NEW STORE WHICH CLOSED IN 1991 DIDN'T TURN A PROFIT IN SEVEN YEARS ALL WE GOT WAS THE TOURIST CROWD MRS MANULIS LAMENTS MEANWHILE MARTHA'S CHERISHED DESIGNERS HAD BEGUN TO DRIFT AWAY BEFORE THE 1980S DESIGNER FASHIONS WERE SOLD ALMOST EXCLUSIVELY IN SALONS LIKE MARTHA IN THE BEGINNING WHEN DESIGNERS GAVE YOU EXCLUSIVITY THEY UPHELD THEIR END OF THE BARGAIN FOR YEARS SAYS MRS MANULIS NOWADAYS THE DESIGNERS WON'T WAIT AROUND THEY WANT THE BIG ORDERS FROM THE DEPARTMENT STORES BY THE 1980S FAMOUS DESIGNERS LIKE BILL BLASS OSCAR DE LA RENTA AND VALENTINO HAD BECOME CONGLOMERATES SELLING MILLIONS OF DOLLARS IN PERFUMES SCARVES AND HANDBAGS AND KEEPING THEIR NAMES BEFORE THE PUBLIC WITH SPLASHY ADVERTISING THEY NO LONGER DEPENDED ON STORES LIKE MARTHA MOST OF MR BLASS'S 10 MILLION COUTURE BUSINESS FOR EXAMPLE NOW RESTS WITH THREE BIG ACCOUNTS NEIMAN MARCUS SAKS FIFTH AVENUE AND I MAGNIN I'D MUCH PREFER TO WORK WITH A FEW BIG CLIENTS INSTEAD OF A LOT OF LITTLE SHOPS HE SAYS BOWING TO THE INEVITABLE MORE DESIGNERS AND RETAILERS ARE REINVENTING THEMSELVES TO REACH A NEW SORT OF CUSTOMER CAROLYNE ROEHM THE DESIGNER WIFE OF WALL STREET TAKEOVER KING HENRY KRAVIS CLOSED HER MONEYLOSING COUTURE HOUSE IN 1991 REPLACING IT THIS SPRING WITH A MAILORDER CATALOG OF 500 BLAZERS AND 100 BLOUSES ULTIMO IN CHICAGO DOES TWICE THE BUSINESS IT DID SIX OR SEVEN YEARS AGO WHEN THE STORE EMPHASIZED BIGTICKET DESIGNER FASHIONS INCLUDING CHRISTIAN LACROIX NOW ITS YOUNG AFFLUENT CUSTOMERS CAN FIND A BROADER MIX OF FASHIONS AT 100 UP MARTHA TOO IS COMING DOWN TO EARTH ADJACENT TO ITS REMAINING SALONS IN PALM BEACH AND BAL HARBOUR MARTHA HAS TWO LOWERPRICED BOUTIQUES THE MARTHA INTERNATIONAL SHOP IN PALM BEACH AND THE NEW JOSIE NATORI BOUTIQUE IN BAL HARBOUR CARRY APPAREL PRICED MOSTLY BETWEEN 200 AND 1000 YET THE MARTHA OF YORE STILL RETAINS ITS LUSTER EVEN WITH THE BARGAINHUNTERS WHO TROOPED INTO THE PARK AVENUE SALON DURING THE RECENT LIQUIDATION SALE BEFORE WALKING AWAY WITH THEIR SHANTUNG GOWNS AND THEIR BROCADE DINNER ENSEMBLES MRS MANULIS SAYS JUST ABOUT EVERYBODY INSISTED ON A LITTLE KEEPSAKE OF A BYGONE ERA A MARTHA LABEL SEWN IN