WASHINGTON THE FLAMES OF WACO A STUNNING LAWENFORCEMENT FAILURE HAVE PARADOXICALLY BOOSTED THE STATUS OF ATTORNEY GENERAL JANET RENO THE NATION'S CHIEF LAWENFORCEMENT OFFICER AND THE PERSON WHO APPROVED THE OPERATION THE FIRE THAT CONSUMED THE TEXAS COMPOUND OF THE BRANCH DAVIDIAN CULT KILLING 86 PEOPLE INCLUDING AT LEAST 17 YOUNG CHILDREN WAS JUST THE OPPOSITE OF WHAT MS RENO HAD IN MIND WHEN SHE APPROVED A FEDERAL BUREAU OF INVESTIGATION PLAN FOR A TANKLIKE VEHICLE TO SMASH THE COMPOUND'S WALLS AND SHOOT IN TEAR GAS IN ADDITION TO THE UNMITIGATED HUMAN TRAGEDY THE WACO DEBACLE ALSO COULD HAVE BEEN A POLITICAL DISASTER FOR THE ATTORNEY GENERAL WHO HAS NOT YET BEEN IN OFFICE SIX WEEKS BUT MS RENO'S FORTHRIGHT ASSUMPTION OF RESPONSIBILITY HAS RESONATED WITH A PUBLIC THAT HAS COME TO EXPECT POLITICIANS TO SHRINK FROM ACCOUNTABILITY I MADE THE DECISIONS I'M ACCOUNTABLE SHE SAID THE BUCK STOPS WITH ME AND NOBODY EVER ACCUSED ME OF RUNNING FROM A DECISION THAT I MADE BASED ON THE BEST INFORMATION THAT I HAD IN OTHER COUNTRIES AN OFFICIAL IN MS RENO'S POSITION MIGHT HAVE BEEN FORCED TO RESIGN HERE HER FORTHRIGHT WILLINGESS TO BEAR THE BURDEN OF A BAD DECISION GAVE HER THE IMAGE OF A STRONG PUBLIC SERVANT CONCERNED WITH HONESTY RATHER THAN A POLITICIAN INTENT ON SPINNING THE STORY TO MAKE HERSELF LOOK AS GOOD AS POSSIBLE I DON'T DO SPIN STUFF SHE ADDED CALIFORNIA DEMOCRATIC REP DON EDWARDS CHAIRMAN OF THE SUBCOMMITTEE THAT OVERSEES THE FBI SAID MS RENO'S PERFORMANCE DEMONSTRATED SHE'S JUST A CLASS ACT VERY CLASSY SHE WAS IN THE KENNEDY TRADITION AFTER THE BAY OF PIGS THE ILLFATED INVASION OF CUBA FOR WHICH MR KENNEDY ASSUMED RESPONSIBILITY HER POSITION IN THE HOURS AFTER THE RESULTS OF THE FIRE BECAME CLEAR CONTRASTED SHARPLY WITH EARLY STATEMENTS FROM PRESIDENT CLINTON AND HIS SPOKESMAN WHICH SEEMED TO DISTANCE THE PRESIDENT FROM THE OPERATION BUT HER STANCE WAS APPRECIATED BY AGENTS FROM THE FBI AND THE TREASURY'S BUREAU OF ALCOHOL TOBACCO AND FIREARMS WHO WERE ON THE FRONT LINES OF THE OPERATION PRESIDENT CLINTON FINALLY ASSERTED HIS RESPONSIBILITY FOR THE DECISION THAT LED TO THE FIRE AND MASS DEATH AS HE ANNOUNCED AN INVESTIGATION INTO THE WACO SITUATION YESTERDAY DURING A ROSE GARDEN CEREMONY THE PRESIDENT SAID FOR THE FIRST TIME I TAKE FULL RESPONSIBILITY FOR THE IMPLEMENTATION OF THE DECISION BUT HE CONTINUED TO SAY THAT HE MERELY ACQUIESCED TO MS RENO'S RECOMMENDATION AND HE DIDN'T TAKE RESPONSIBILITY FOR THE DEATHS OF INDIVIDUALS DURING THE MONDAY CONFLAGRATION MR CLINTON PUT THE BLAME FOR THE DEATHS ON CULT LEADER DAVID KORESH HE KILLED THOSE HE CONTROLLED AND HE BEARS ULTIMATE RESPONSIBILITY FOR THE CARNAGE THAT ENSUED THE PRESIDENT SAID MR CLINTON ORDERED THE JUSTICE AND TREASURY DEPARTMENTS TO UNDERTAKE A VIGOROUS AND THOROUGH INVESTIGATION TO UNCOVER WHAT HAPPENED AND WHY AND WHETHER ANYTHING COULD HAVE BEEN DONE DIFFERENTLY I HAVE TOLD THE DEPARTMENTS TO INVOLVE INDEPENDENT PROFESSIONAL LAWENFORCEMENT OFICIALS IN THE INVESTIGATION IN ADDITION THE HOUSE JUDICIARY COMMITTEE HAS SCHEDULED A HEARING NEXT WEDNESDAY TO INVESTIGATE THE WACO OPERATION MR CLINTON HAD ONLY WORDS OF PRAISE FOR HIS ATTORNEY GENERAL I WAS FRANKLYSURPRISED WOULD BE A MILD WORD AT THE NOTION THAT ANYONE WOULD SUGGEST MS RENO RESIGN BECAUSE SOME RELIGIOUS FANATICS MURDERED THEMSELVES HE SAID SHE HAS CONDUCTED HER DUTIES IN AN APPROPRIATE FASHION AND SHE HAS DEALT WITH THIS SITUATION I THINK AS WELL AS SHE COULD HAVE AS THE PRESIDENT PRAISED MS RENO FBI AND JUSTICE DEPARTMENT OFFICIALS TRIED TO RESOLVE APPARENT CONTRADICTIONS CONCERNING THE REASONS THEY DECIDED TO MOVE AGAINST THE COMPOUND TWO DAYS AGO AFTER PURSUING A WAITANDSEE POLICY FOR 51 DAYS AT HER NEWS CONFERENCE MONDAY THE ATTORNEY GENERAL INDICATED THAT ONE FACTOR DRIVING THE DECISION WAS THE NEED FOR THE HOSTAGE RESCUE TEAM TO GET SOME TIME OFF WE MADE SOME JUDGMENTS BASED ON THE FACTS 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 FBI DIRECTOR WILLIAM SESSIONS AND LARRY POTTS HEAD OF THE BUREAU'S CRIMINAL DIVISION SAID THE TEAM'S STATE OF ALERTNESS WAS NOT A FACTOR IN THE DECISION IN NO WAY SHAPE OR FORM WERE THEY NOT CAPABLE OF PERFORMING SAID MR POTTS AT THE MONDAY NEWS CONFERENCE MS RENO ALSO SAID A CAUSE FOR THE FIRST EFFORT TO GO INTO THE COMPOUND WAS THE REPORTS THAT CHILDREN WERE BEING SEXUALLY ABUSED AND SUBSEQUENTLY WE RECEIVED INFORMATION THAT INFANTS WERE BEING SLAPPED AROUND AND BEATEN THE FBI OFFICIALS SAID THEY HAD NO INFORMATION AFTER THE SIEGE BEGAN ON FEB 28 THAT THE CHILDREN WERE BEING ABUSED MS RENO ACKNOWLEDGED THAT ON ABC'S NIGHTLINE MONDAY NIGHT BUT ADDED WE HAD NOT HAD ANY VERIFICATION CONCERNING THE WELLBEING OF THE CHILDREN SINCE THAT TIME IN WACO FBI SPECIAL AGENT JEFF JAMAR SAID INTELLIGENCE WHICH INCLUDED ELECTRONIC LISTENING INSIDE THE COMPOUND INDICATED CONDITIONS WERE DETERIORATING PROMPTING THE STEPPEDUP SCHEDULE FOR FORCING THE DAVIDIANS OUT OF THEIR COMPOUND CONCERNS WERE MOUNTING HE SAID THAT IF AUTHORITIES WAITED TOO LONG TO END THE STANDOFF CHILDREN WOULD DIE OF HUNGER OR DISEASE IT WAS NOT BECAUSE OF OUR ACTIONS THAT THOSE CHILDREN ARE DEAD SAID MR JAMAR WHO DIRECTED THE AGENCY'S OPERATION IN WACO THOSE CHILDREN ARE DEAD BECAUSE DAVID KORESH HAD THEM KILLED A BURIED BUS SET UP AS AN UNDERGROUND HAVEN WAS FOUND TO HAVE COOL TEARGASFREE AIR AND WOULD HAVE SAVED THE LIVES OF THE CHILDREN MR JAMAR SAID BUT IT WENT UNUSED IN FACT THE FBI SAID MR KORESH'S COMPLETE CONTROL OVER HIS CULT WAS SO POWERFUL THAT PEOPLE WHO TRIED TO FLEE MAY HAVE BEEN SHOT BY FELLOW FOLLOWERS AUTHORITIES FOUND AT LEAST ONE BODY OUTSIDE THE COMPOUND RUBBLE WITH A GUNSHOT WOUND IT WAS UNCLEAR MR JAMAR SAID WHEN THE WOUND WAS SUSTAINED BUT THE FBI SPECULATED THAT MR KORESH HAD ORDERED THAT FOLLOWERS WHO TRIED TO FLEE BE SHOT EVIDENCE INCLUDING AERIAL SURVEILLANCE CONTINUED TO MOUNT THAT THE FIRE THAT DESTROYED THE COMPOUND WAS SET ON MR KORESH'S ORDERS THE FBI SAID BUT THE AGENCY SAID STATEMENTS OBTAINED FROM SOME OF THE NINE SURVIVORS WERE INCONCLUSIVE ON THE APPARENT MASS SUICIDE RAISING THE QUESTION OF WHETHER MR KORESH AND A FEW OF HIS FOLLOWERS HAD MURDERED THE REST MOST OF THE CAPTURED DAVIDIANS WERE HELD AS MATERIAL WITNESSES ONE JAIME CASTILLO 24 YEARS OLD OF EL MONTE CALIF WAS CHARGED WITH CONSPIRACY TO MURDER A FEDERAL AGENT HIS ATTORNEY JEFF KEARNEY OF FORT WORTH TEXAS SAID MR CASTILLO WILL PLEAD NOT GUILTY TO THE CHARGE WHICH HE SAID STEMS FROM THE FEB 28 SHOOTOUT AGENTS' AFFIDAVITS UNSEALED YESTERDAY IN WACO DESCRIBED THE ACTIVITIES OF MR CASTILLO AND OTHER CULT MEMBERS THE AFFIDAVITS ALSO DETAILED MR KORESH'S CACHE OF WEAPONS AND ITS ESTIMATED VALUE ABOUT 200000 ALL SPENT IN THE 18 MONTHS BEFORE THE RAID WHILE FBI OFFICIALS PORTRAYED THE TANK BATTERING OF THE COMPOUND WALLS AS THE NEXT LOGICAL STEP IN PRESSURING CULT MEMBERS TO SURRENDER THAT DECISION WAS THE SUBJECT OF SEVERAL MEETINGS BETWEEN TOP JUSTICE DEPARTMENT AND FBI OFFICIALS BEGINNING APRIL 12 IN FBI HEADQUARTERS IN ADDITION TO MS RENO AND MESSRS SESSIONS AND POTTS THE MEETINGS INCLUDED WEBSTER HUBBELL THE ASSOCIATE ATTORNEY GENERALDESIGNATE FLOYD CLARKE THE FBI'S DEPUTY DIRECTOR AND OTHER OFFICIALS MS RENO'S DECISION TO PROCEED WITH THE PLAN DEVELOPED BY THE FBI OFFICIALS WAS MADE AT A SATURDAY EVENING MEETING IN HER OFFICE NO ONE PRESENT DISAGREED WITH THE DECISION SOME PARTICIPANTS SAID HER MAJOR CONCERNS IN THE DISCUSSIONS ACCORDING TO HER SPOKESMAN CARL STERN WERE TO ENSURE THE WELFARE OF THE CHILDREN TO MAKE CERTAIN THE TEAR GAS WOULD NOT PHYSICALLY HARM THE OCCUPANTS AND TO DETERMINE THAT THERE WAS NO POINT IN ATTEMPTING TO TALK FURTHER WITH MR KORESH SHE PERSONALLY MADE CALLS TO DOCTORS AND OTHER EXPERTS TO GET ANSWERS TO HER QUESTION MR STERN SAID AN IMPORTANT FACTOR IN DECIDING TO PROCEED SAID ONE FBI AGENT WAS THE FEELING AMONG FBI AND JUSTICE DEPARTMENT OFFICIALS THAT THEY SHOULD TAKE BACK CONTROL OF THE SITUATION AND THAT CULT MEMBERS WERE THUMBING THEIR NOSES AT THE CRIMINAL JUSTICE SYSTEM AS THE NATION'S FIRST WOMAN ATTORNEY GENERAL MS RENO FACED EXTRA PUBLICPERCEPTION HURDLES IN HER HANDLING OF THE AFTERMATH OF THE WACO ASSAULT IN THIS HER NONONSENSE PROSECUTORIAL BACKGROUND PERHAPS SERVED HER BETTER THAN THE BACKGROUND OF ANOTHER WOMAN MR CLINTON HAD CHOSEN FOR THE JOB CORPORATE LAWYER ZOE BAIRD WOULD HAVE SERVED MS BAIRD WITHDREW HER NAME MS RENO'S QUALIFICATIONS WERE RECOGNIZED BY THE WHITE HOUSE WHEN SHE WAS CHOSEN TO BE ATTORNEY GENERAL WHITE HOUSE COUNSEL BERNARD NUSSBAUM JOKINGLY TOLD HER HE WOULDN'T INTERFERE WITH HER RUNNING OF THE JUSTICE DEPARTMENT AS LONG AS SHE PROMISED NOT TO RUN AGAINST MR CLINTON IN 1996 SCOTT MCCARTNEY AND BOB ORTEGA IN WACO CONTRIBUTED TO THIS ARTICLE SEE RELATED LETTERS LETTERS TO THE EDITOR THE SLEEP OF REASON WSJ APRIL 28 1993 9304210101 9304280078 930428 CLIFFORD HELPED HIDE BCCI BID WITNESS SAYS FORMER OFFICER SAYS LAWYER ADVISED CONCEALMENT OF US BANK TAKEOVER BY PETER TRUELL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A KEY GOVERNMENT WITNESS SAID ATTORNEY CLARK CLIFFORD ADVISED TOP OFFICIALS OF BANK OF CREDIT & COMMERCE INTERNATIONAL ON HOW TO CONCEAL THE BANK'S 1982 TAKEOVER OF FIRST AMERICAN BANKSHARES OF WASHINGTON DC THE GOVERNMENT WITNESS DILDAR RIZVI TESTIFIED THAT MR CLIFFORD SEVERAL TIMES TOLD SENIOR BCCI OFFICERS TO MAKE SURE THAT AT NO TIME SHOULD A GROUP OF ARAB INVESTORS FRONTING FOR BCCI DENY THEY ARE THE SHAREHOLDERS IN FINANCIAL GENERAL BANKSHARES THE PREDECESSOR TO FIRST AMERICAN MR CLIFFORD'S LAW PARTNER ROBERT ALTMAN ATTENDED THOSE MEETINGS MR RIZVI SAID THIS IS THE FIRST TIME THAT ANYONE HAS ALLEGED PUBLICLY THAT MR CLIFFORD ALONG WITH MR ALTMAN INSTRUCTED FIRST AMERICAN'S NOMINEE SHAREHOLDERS TO LIE ABOUT THEIR TIES TO BCCI MR RIZVI A 53YEAROLD FORMER SENIOR BCCI OFFICER IS TESTIFYING IN THE NEW YORK STATE TRIAL OF MR ALTMAN ON BRIBERY AND BANKFRAUD CHARGES IN CONNECTION WITH BCCI'S ALLEGEDLY SECRET AND ILLEGAL TAKEOVER MR CLIFFORD WHO WAS CHARGED ALONG WITH MR ALTMAN IN JULY 1992 HAS BEEN JUDGED TOO ILL TO STAND TRIAL THE 86YEAROLD FORMER DEFENSE SECRETARY RECENTLY UNDERWENT A HEART BYPASS OPERATION BOTH MR CLIFFORD AND MR ALTMAN WHO SERVED AS BCCI'S US COUNSEL FROM 1978 TO 1990 HAVE CONSISTENTLY AND VIGOROUSLY DENIED ALL THE CHARGES AGAINST THEM MR ALTMAN'S DEFENSE COUNSELS WHO HAVE YET TO CROSSEXAMINE MR RIZVI ARE EXPECTED TO PLAY UP MR RIZVI'S OWN RECORD THE FORMER BCCI OFFICER WAS INDICTED BY A FEDERAL GRAND JURY ON MONEYLAUNDERING CHARGES IN SEPTEMBER 1991 MR RIZVI NOW IS COOPERATING WITH GOVERNMENT PROSECUTORS IN EXCHANGE FOR THE DROPPING OF THAT INDICTMENT THERE HAVE BEEN SEVERAL OTHER SERIOUS ALLEGATIONS MADE ABOUT MR RIZVI'S CONDUCT AT BCCI DURING HIS TESTIMONY MR RIZVI ADMITTED HE TRANSFERRED 146 MILLION OF BCCI DEPOSITORS' FUNDS TO THE ACCOUNTS OF SHEIKH KHALID BIN MAHFOUZ A LEADING SAUDI ARABIAN BANKER WHO HAS BEEN INDICTED BY A NEW YORK STATE GRAND JURY ON BANK FRAUD CHARGES SHEIKH KHALID WHO WAS ONCE A MAJOR SHAREHOLDER IN BCCI AND FIRST AMERICAN HAS DENIED THE CHARGES MR RIZVI WAS CLOSELY INVOLVED IN THE ATTEMPT TO TAKE OVER FINANCIAL GENERAL BANKSHARES AS FIRST AMERICAN WAS KNOWN PRIOR TO 1982 IN 1978 AND 1979 HE ACTED AS LIAISON BETWEEN BCCI'S NEW YORK AND WASHINGTON LAWYERS ITS NEW YORK INVESTMENT BANKERS AND ITS HEAD OFFICE HE REMAINED WITH BCCI UNTIL 1990 A YEAR BEFORE THE BANK WAS SEIZED BY REGULATORS AND SHUT DOWN 9304280077 930428 CREDIT RATINGS FLEET FINANCIAL GROUP INC PROVIDENCE RI STANDARD & POOR'S CORP SAID IT RAISED ITS RATING ON THIS BANKING COMPANY'S SENIOR DEBT TO SINGLEAMINUS FROM TRIPLEBPLUS SUBORDINATED DEBT TO TRIPLEBPLUS FROM TRIPLEB AND PREFERRED STOCK TO TRIPLEB FROM TRIPLEBMINUS ABOUT 2 BILLION OF DEBT IS AFFECTED THE RATING AGENCY CITED THE COMPANY'S STEADILY IMPROVING PROFITABILITY AND CONTINUED REDUCTION IN PROBLEM LOANS AMONG REASONS FOR ITS UPGRADE PET INC ST LOUIS MOODY'S INVESTORS SERVICE INC SAID IT'S MULLING WHETHER TO LOWER ITS CREDIT RATINGS ON 730 MILLION OF PET COMMERCIAL PAPER AND LONGTERM DEBT MOODY'S SAID THE REVIEW WAS PROMPTED BY CONCERNS ABOUT INCREASED COMPETITION IN MEXICANSTYLE FOODS HEAVY PROMOTIONAL SPENDING AND THE OUTLOOK FOR THE COMPANY'S FROZEN FISH BUSINESS PET MAKES PACKAGED CONVENIENCE FOODS INCLUDING OLD EL PASO MEXICAN FOODS PROGRESSO SOUPS AND VAN DE KAMP'S FROZEN SEAFOOD MOODY'S SAID THE REVIEW INVOLVES ITS PRIME2 RATING ON 400 MILLION OF COMMERCIAL PAPER AND ITS BAA1 RATING ON 330 MILLION OF LONGTERM DEBT 9304280076 930428 AGENTS SUE ALLSTATE SEARS IN DISPUTE OVER EXPENSES NEW YORK A GROUP OF AGENTS FOR ALLSTATE INSURANCE CO HAVE SUED THE COMPANY AND ITS PARENT SEARS ROEBUCK & CO IN A DISPUTE OVER REIMBURSEMENT OF OFFICE EXPENSES THE LAWSUITS FILED IN FEDERAL COURT IN MANHATTAN AND STATE COURT IN TEXAS ALLEGE THAT SEARS AND ALLSTATE COMMITTED FRAUD WHEN THEY PERSUADED AGENTS IN 1983 AND 1984 TO OPERATE LESS AS EMPLOYEES OF ALLSTATE AND MORE AS INDEPENDENT OPERATORS THE LAWSUITS ALLEGE THAT THE PROGRAM TO GIVE THE AGENTS MORE INDEPENDENCE WAS NOTHING MORE THAN A SCHEME TO FORCE AGENTS TO SHOULDER OPERATING EXPENSES FOR WHICH THEY WERE RARELY REIMBURSED SPOKESMEN FOR BOTH ALLSTATE AND CHICAGOBASED SEARS DECLINED TO COMMENT THE FEDERAL COMPLAINT CHARGES THAT 15000 AGENTS NATIONWIDE WERE DEFRAUDED AND CLAIMS ALLSTATE OWES THE AGENTS HUNDREDS OF MILLIONS OF DOLLARS THE LAWSUITS COME AS SEARS PLANS A 2 BILLION PUBLIC OFFERING OF ABOUT 20 OF ALLSTATE AGENTS OFTEN HAVE DISPUTES WITH INSURANCE COMPANIES BUT ARE USUALLY RELUCTANT TO GO TO COURT BECAUSE OF WORRIES ABOUT ANGERING THEIR COMPANY AND JEOPARDIZING THEIR LIVELIHOOD 9304280075 930427 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 9304280074 930428 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY SCOTT R SCHMEDEL HEALTHCARE GROUPS HAIL IRS EXEMPTION RULINGS BUT FEAR THEY ARE STYMIED NEW ENTITIES THAT INTEGRATE THE SERVICES OF DOCTORS HOSPITALS AND INSURERS LOOK LIKE THE WAVE OF THE FUTURE SPONSORS WELCOME RECENT IRS RULINGS THAT RECOGNIZE UNITS OF TWO GROUPS AS TAXEXEMPT BUT THEY SAY A STATEMENT FROM THE HEALTH AND HUMAN SERVICES DEPARTMENT UNDERCUTS THE RULINGS ON A KEY ISSUE IN PURCHASES OF DOCTORS' PRACTICES THE UNCERTAINTY IS FRUSTRATING EFFORTS TO FORM AND FINANCE INTEGRATEDCARE SYSTEMS SAYS LAWYER MICHAEL PEREGRINE OF GARDNER CARTON & DOUGLAS CHICAGO THE LATEST IRS RULING FAVORS FACEY MEDICAL FOUNDATION A UNIT OF UNIHEALTH AMERICA WHICH IS BUYING A 48DOCTOR PRACTICE FOR FACEY THE 88 MILLION PRICE INCLUDES PAYMENT FOR INTANGIBLE ASSETS SUCH AS PATIENT FILES AND GOODWILL THE IRS DOESN'T OBJECT TO THAT BUT IT CONDITIONS FACEY'S EXEMPTION ON COMPLIANCE WITH MEDICARE LAW THAT BARS HOSPITAL KICKBACKS FOR PATIENT REFERRALS THE CATCH IS THAT THE HHS INSPECTOR GENERAL'S OFFICE HAS WRITTEN TO THE IRS THAT PAYMENTS FOR INTANGIBLES MAY DISGUISE ADVANCE KICKBACKS FOR FUTURE REFERRALS THE LETTER'S STAND IS TERRIBLY UNFAIR TO DOCTORS AND CARE PROVIDERS ARGUES NANCY ATOR OF ROPES & GRAY BOSTON IT'S LONELY AT THE SHOP BUT SOLE PROPRIETORS HAVE RAISED COMPLIANCE A BIT SMALLBUSINESS SCHEMES TO WRIGGLE OUT OF TAXES HAVE LONG BEEN IRS TARGETS THE LATEST IRS STUDY SAYS SOLE PROPRIETORS WHO REPORT BUSINESS INCOME ON PERSONAL RETURNS ACCOUNTED FOR 55 OF 1988'S RETURNS 11 OF THE TAX LIABILITY AND 31 OR 10 BILLION OF THE UNREPORTED LIABILITY ANALYSTS FIND THAT VOLUNTARY COMPLIANCE IS BELOW 80 COMPARED WITH 93 FOR INDIVIDUALS OVERALL BUT SAY THAT SEEMS TO BE IMPROVED FROM 1985 A POSSIBLE REASON THE 1986 TAX ACT REDUCED THE BENEFITS OF UNDERSTATING RECEIPTS AND INFLATING DEDUCTIONS ANALYSES OF INTENSIVE AUDITS ALSO SHOW COMPLIANCE RISES WITH FIRMS' SIZE THE MOST CHISELING OCCURS GENERALLY IN CASH BUSINESSES AND SPECIFICALLY IN TRANSPORTATION RETAILING AND AGRICULTURERELATED SERVICES COMPLIANCE RATINGS RANGED FROM 73 FOR FIRMS IN THE IRS'S WESTERN REGION TO 85 IN THE SOUTHWEST SERVICE BUSINESSES ARE THE BIGGEST FINAGLERS AMONG SMALL CORPORATIONS ODDLY IRS ANALYSTS FOUND SERVICE CONCERNS TO BE THE MOST COMPLIANT AMONG SOLE PROPRIETORSHIPS BUT THE LEAST AMONG CORPORATIONS WITH ASSETS BELOW 10 MILLION THE STUDIES DON'T EXPLAIN THE CONTRAST THE RESEARCHERS PREVIOUSLY SAID SMALL CORPORATIONS' VOLUNTARY COMPLIANCE SLUMPED TO 61 IN 1987 FROM 81 IN 1980 NOW THEY SAY THAT FURTHER ANALYSIS OF INTENSIVE AUDITS SHOWS SHARP DROPS ACROSS THE FULL RANGE OF INDUSTRIES AND FIRM SIZES IN THE GROUP SERVICE BUSINESSES MAKE UP 34 OF THE 23 MILLION COMPANIES AND HAD A COMPLIANCE LEVEL OF 48 AGRICULTURE FORESTRY FISHING AND MANUFACTURING CONCERNS HAD THE HIGHEST LEVEL 74 COMPLIANCE LEVELS IN OTHER INDUSTRIES RANGED FROM 55 TO 65 THE OLDEST AND LARGEST CONCERNS GENERALLY WERE THE MOST COMPLIANT YOUNG COMPANIES THOSE UNDER THREE YEARS OLD HAD THE MOST TROUBLE GETTING IT RIGHT REACHING A VOLUNTARYCOMPLIANCE LEVEL OF ONLY 51 THE COMPLIANCE SLUMP MAY REFLECT A DECLINE IN THE PERCENTAGE OF RETURNS THAT ARE AUDITED RESEARCHERS SUGGEST THE 20 WITHHOLDING TAX ON LUMPSUM PENSION PAYOUTS THAT DON'T GO DIRECTLY INTO OTHER PLANS WILL TRAP AT LEAST SOME WORKERS IN THE PESSIMISTIC OPINION OF 49 OF EMPLOYERS SURVEYED BY BUCK CONSULTANTS MOST COMPANIES SAID THEIR COSTS OF ADOPTING THE WITHHOLDING PROCEDURES WERE MINIMAL CLINTON'S TAXPLAN DETAILS ARE JUST NOW BEING EXAMINED BY CONGRESS WHICH IS LIKELY TO DO SOME SURGERY ON THEM BUT POCKET BOOKS/PRENTICE HALL HAS ALREADY PUBLISHED A 499 INSTANT BOOK TO ADVISE READERS ON TAXSAVING STEPS YOU CAN TAKE TO DIMINISH THE PROPOSED TAX INCREASES A THOUSAND TIMES NO IS NO DEFENSE PATMON & YOUNG A PROFESSIONAL CORPORATION IN DETROIT CAN'T ESCAPE AN IRS DEFICIENCY NOTICE SENT TO ITS POSTOFFICE BOX JUST BECAUSE THE OWNERS REFUSED TO ACCEPT DELIVERY OF THE ENVELOPE THE TAX COURT HOLDS DEADWOOD YES DEADEYE NO THE IRS AIMS TO AX A USELESS RULE BUT MISSES YESTERDAY THE IRS PUBLISHED A NOTICE DELETING MANY TAX REGULATIONS THAT ARE DEADWOOD BECAUSE THE UNDERLYING LAWS HAVE BEEN CHANGED ON THE LIST IS SECTION 13051 COVERING TAXFREE DIVIDENDS IN THE FORM OF STOCK OR STOCK RIGHTS BUT THIS VITAL SECTION CERTAINLY ISN'T DEADWOOD SAYS BARRY ISAACS OF DELOITTE & TOUCHE CPAS CORPORATIONS RELY ON IT FOR TAXFREE DISTRIBUTIONS OF STOCK NOW THEY LACK GUIDANCE THE IRS ADMITS THE ERROR AND PLANS TO CORRECT IT THE NOTICE WAS MEANT TO STRIKE SIMILARLY NUMBERED SECTION 5C3051 OBSOLETE RULES FOR REINVESTMENTS OF DIVIDENDS IN UTILITIES' STOCK THAT SECTION LIVES ON THE IRS GAVE THE WRONG NUMBER A YEAR AGO IN SEEKING COMMENTS ON PLANNED DELETIONS NO ONE NOTICED THEN DESPITE THE IRS'S GOOD INTENTIONS ISAACS SAYS IT ISN'T SAFE FOR CORPORATIONS TO RELY ON THE DELETED SECTION ISAACS ADVISES THE IRS TO ANNOUNCE IMMEDIATELY THAT IT WILL RESTORE THE DELETED SECTION TO THE REGULATIONS BRIEFS MARK IT PAVED IN FULL A BANKRUPT KENTUCKY COAL COMPANY SETTLED A 614000 TAX BILL BY TURNING A TWOMILE PRIVATE ROAD VALUED AT 46 MILLION OVER TO THE STATE MISSISSIPPI HAS JUST EXEMPTED ALL RETIREMENT INCOME FROM STATE TAX STARTING NEXT JAN 1 AT LEAST ONE OF ITS CITIES HATTIESBURG IS LAUNCHING AN AGGRESSIVE EFFORT TO LURE OUTOFSTATE RETIREES 9304280073 930428 IRA MAGAZINER OUTLINES SOME HEALTHCARE REFORMS WASHINGTON THE CLINTON ADMINISTRATION HOPES TO MAKE A SERIOUS START ON IMPROVING LONGTERM CARE FOR THE ELDERLY CHRONICALLY ILL AND DISABLED AS PART OF ITS OVERHAUL OF THE HEALTHCARE SYSTEM SAID SENIOR WHITE HOUSE AIDE IRA MAGAZINER HOWEVER HE INDICATED THAT THE ADMINISTRATION PROBABLY CAN'T AFFORD A FULLSCALE BENEFITS PACKAGE FOR THOSE IN NEED OF LONGTERM CARE WE HAVE A SERIOUS LONGTERM CARE PROBLEM BUT WE CANNOT COMPLETELY SOLVE IT THIS YEAR OR NEXT YEAR OR THE YEAR AFTER SAID MR MAGAZINER WHO IS OVERSEEING THE HEALTHCARE REFORM EFFORT IT IS TOO EXPENSIVE A PROBLEM DURING REMARKS BEFORE THE AMERICAN GROUP PRACTICE ASSOCIATION MR MAGAZINER SAID ONE GOAL OF THE CLINTON PLAN WOULD BE TO PROMOTE MORE HOMEBASED AND COMMUNITYBASED CARE FOR THE ELDERLY AND CHRONICALLY ILL IN OUTLINING WHERE THE ADMINISTRATION IS HEADED ON HEALTH CARE MR MAGAZINER PROMISED THAT THE PLAN WOULD GUARANTEE COVERAGE FOR THE UNINUSURED STILL GIVE AMERICANS A CHOICE OF DOCTORS AND SIMPLIFY THE MEDICAL DELIVERY SYSTEM 9304280072 930428 BUSINESS BRIEF EM WARBURG PINCUS & CO AFFILIATE AGREES TO ACQUIRE UNIGESCO'S STAKE IN UNIVA WARBURG PINCUS INVESTORS LIMITED PARTNERSHIP AN AFFILIATE OF EM WARBURG PINCUS & CO IS THE PREVIOUSLY UNIDENTIFIED PARTY THAT AGREED TO PURCHASE UNIGESCO INC'S 26 STAKE IN UNIVA INC A MONTREAL SUPERMARKET COMPANY UNIGESCO ANNOUNCED FRIDAY IT HAD REACHED A CONDITIONAL AGREEMENT FOR THE SALE OF AS MANY AS 224 MILLION SHARES IN UNIVA AT 885 CANADIAN DOLLARS US703 A SHARE IT IDENTIFIED THE BUYER ONLY AS A PROMINENT US INVESTMENT FIRM IN RESPONSE TO INQUIRIES A SPOKESWOMAN FOR EM WARBURG NEW YORK CONFIRMED THE AGREEMENT WITH UNIGESCO A MONTREAL HOLDING COMPANY WITH INTERESTS IN THE HARDWARE BUSINESS 9304280070 930428 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH AIRLINE PHONE TIE APPROVED BY COMMUNICATIONS FIRM CLAIRCOM COMMUNICATIONS GROUP LP SAID IT HAS REACHED AN ARRANGEMENT WITH AMERICAN TELEPHONE & TELEGRAPH CO NEW YORK TO LINK AT&T'S LONGDISTANCE AND OPERATOR SERVICES TO CLAIRCOM'S AIRPLANE PHONE SYSTEM CLAIRCOM BASED IN SEATTLE WASH SAID THE SERVICE AIRONE WOULD CONNECT AIR TRAVELERS TO THE AT&T SYSTEM IT IS AVAILABLE ON SOME SOUTHWEST AIRLINES AND ALASKA AIRLINES JETLINERS AND WILL BE AVAILABLE FLEETWIDE BY MIDYEAR CLAIRCOM SAID IT HAS REACHED AN AGREEMENT TO INSTALL THE SYSTEM ON NORTHWEST AIRLINES CLAIRCOM IS A JOINT VENTURE OF MCCAW CELLULAR COMMUNICATIONS INC KIRKLAND WASH AND HUGHES NETWORK SYSTEMS GERMANTOWN MD 9304280069 930428 FINANCING BUSINESS CANADA'S GOVERNMENT RECEIVES DOWNGRADE IN ITS BOND RATINGS MONTREAL CANADIAN BOND RATING SERVICE CITING THE CANADIAN GOVERNMENT'S MOUNTING DEBT DOWNGRADED ITS RATING OF GOVERNMENT BONDS BY A NOTCH TO DOUBLEAPLUS FROM TRIPLEA THE ANNOUNCEMENT BY THE DEBT RATING AGENCY CAME AMID WIDESPREAD CRITICISM OF THE GOVERNMENT'S NEW BUDGET WHICH WAS INTRODUCED IN PARLIAMENT MONDAY CBRS SAID THE GOVERNMENT'S BUDGET DIDN'T RESPOND FORCEFULLY ENOUGH TO THE COUNTRY'S DEBT PROBLEM CANADA'S FINANCES ARE EXPECTED TO DETERIORATE YET FURTHER OVER THE NEXT FEW YEARS BECAUSE OF HIGH GOVERNMENT BUDGET DEFICITS THE AGENCY SAID THE CANADIAN FINANCE DEPARTMENT SAID THE DOWNGRADE WASN'T JUSTIFIED AND TOOK ISSUE WITH SOME OF THE DATA CITED BY CBRS IN ITS ANNOUNCEMENT THE DEPARTMENT SAID TOTAL PUBLIC SECTOR DEBT IS NOWHERE NEAR THE 112 OF GROSS DOMESTIC PRODUCT CITED BY CBRS IT SAID GOVERNMENT DATA INDICATES THE PERCENTAGE IS 891 IHOR KOTS THE RATING AGENCY'S MANAGING DIRECTOR SAID I HAVE NO DIFFICULTY STANDING BY OUR NUMBERS CANADIAN BOND RATING'S ACTION FOLLOWED STANDARD & POOR'S CORP'S OCTOBER DOWNGRADE OF THE CANADIAN GOVERNMENT'S FOREIGN CURRENCY DEBT TO DOUBLEAPLUS FROM TRIPLEA FOREIGN CURRENCY DEBT ACCOUNTS FOR LESS THAN 5 OF GOVERNMENT AND GOVERNMENTGUARANTEED BONDS OUTSTANDING THE CBRS DOWNGRADE APPLIES TO ALL OF THE FEDERAL GOVERNMENT'S DEBENTURES THE GOVERNMENT CURRENTLY HAS 174 BILLION CANADIAN DOLLARS US1378 BILLION OF BONDS OUTSTANDING 9304280068 930428 LEISURE & ARTS BOOKSHELF ENVIRONMENTAL FEARMONGERS EXPOSED BY S FRED SINGER SOMETHING RATHER UNEXPECTED SEEMS TO BE HAPPENING TO THE JOURNALISTIC PROFESSION AFTER YEARS FANNING THE FLAMES OF ALLEGED ENVIRONMENTAL DISASTERS IT IS SUDDENLY SPAWNING DOZENS OF SKEPTICS AND CONTRARIANS RONALD BAILEY AND MICHAEL FUMENTO ARE AMONG THE BEST OF THIS NEW BREED FOLLOWING A PATH BLAZED BY THE LATE COLUMNIST WARREN BROOKES IN HEAVILY FOOTNOTED YET READABLE BOOKS THEY DEMOLISH THE ORACLES OF DOOM AND GLOOM THE BOOKS NEATLY COMPLEMENT EACH OTHER MR BAILEY FORMERLY A WRITER AT FORBES AND NOW A PRODUCER FOR THE PBS SERIES TECHNOPOLITICS COVERS GLOBALSCALE DISASTERS IN ECOSCAM THE FALSE PROPHETS OF ECOLOGICAL APOCALYPSE ST MARTIN'S 228 PAGES 1995 MR FUMENTO A LAWYERJOURNALIST WHO WRITES ON ENVIRONMENTAL TOPICS FOR INVESTOR'S BUSINESS DAILY FOCUSES MORE ON CANCER SCARES IN SCIENCE UNDER SIEGE BALANCING TECHNOLOGY AND THE ENVIRONMENT MORROW 448 PAGES 27 MR BAILEY HAS A FINE TIME SKEWERING FALSE PROPHETS AND THEIR FAILED FORECASTS AND DETAILING THE INCENTIVES THAT ENCOURAGE THE WRITING OF DARK SCREEDS ONE HAS ONLY TO CONSIDER PAUL EHRLICH AUTHOR OF THE POPULATION BOMB WHOSE PROPHECIES HAVE BEEN CROWNED WITH A MACARTHUR FOUNDATION GENIUS GRANT AND THE SWEDISH ACADEMY'S CRAFOORD PRIZE IN 1969 HE PREDICTED THAT HUNDREDS OF MILLIONS WOULD SOON PERISH IN SMOG DISASTERS IN NEW YORK AND LOS ANGELES THAT THE OCEANS WOULD DIE OF DDT POISONING BY 1979 AND THAT US LIFE EXPECTANCY WOULD DROP TO 42 YEARS BY 1980 DUE TO CANCER EPIDEMICS ANOTHER MACARTHUR GENIUS LESTER BROWN PRESIDENT OF THE WORLDWATCH INSTITUTE WROTE THAT GLOBAL OIL PRODUCTION WOULD PEAK IN 1990 AND SAW THE WORLD RUNNING OUT OF FOOD AT LEAST THREE TIMES ALWAYS WITHIN THE NEXT FEW YEARS UNSURPRISINGLY MR BAILEY IS ALSO TOUGH ON CARL SAGAN WITH HIS NUCLEAR WINTER SCARE AND HIS FAILED ATTEMPT TO REPRESENT THE KUWAITI OIL FIRES AS LEADING TO A GLOBAL FREEZE ENVIRONMENTAL ACTIVISTS LOOKING FOR NEW GLOBAL DISASTERS HAVE FOCUSED MORE RECENTLY ON THE OZONE LAYER WHILE MR BAILEY DOESN'T HAVE THE TIGHTEST GRASP ON THE SCIENTIFIC COMPLEXITIES HE CORRECTLY POINTS OUT THAT ANTICIPATED OZONE DEPLETIONS IF THEY OCCUR AT ALL WOULD CAUSE ONLY MODEST INCREASES OF ULTRAVIOLET RADIATION AT EARTH'S SURFACE EQUIVALENT TO MOVING LESS THAN 100 MILES TOWARD THE EQUATOR HUMANS AND PLANTS HAVE ALREADY ADAPTED TO MUCH GREATER VARIATIONS TURNING TO THE GLOBALWARMING ISSUE THE MOTHER OF ALL ENVIRONMENTAL SCARES TO QUOTE POLITICAL SCIENTIST AARON WILDAVSKY MR BAILEY DOCUMENTS THE SUBSTANTIAL DISAGREEMENT BETWEEN THE CLIMATE RECORD AND COMPUTER MODELS INDEED A 1991 NATIONAL ACADEMY OF SCIENCES STUDY SUPPORTS THE THESIS THAT A MODEST WARMING WOULD ACTUALLY BENEFIT HUMAN EXISTENCE AND AGRICULTURE AND ONLY 15 YEARS AGO MANY CLIMATE SCIENTISTS NOW PROMOTING THE GLOBALWARMING CRISIS WERE EXPECTING ANOTHER ICE AGE QUOTING EXTENSIVELY FROM CLIMATOLOGIST STEPHEN SCHNEIDER'S 1976 BOOK THE GENESIS STRATEGY PROMOTING A GRANDIOSE GLOBAL SURVIVAL COMPROMISE TO SAVE THE WORLD FROM GLOBAL COOLING THROUGH BUREAUCRATIC PLANNING AND CONTROLS MR BAILEY OBSERVES FREEZE OR FRY THE PROBLEM IS ALWAYS INDUSTRIAL CAPITALISM AND THE SOLUTION IS ALWAYS INTERNATIONAL SOCIALISM MR FUMENTO THOUGH PROVED TO BE AN ACCURATE FORECASTER WHEN HE ARGUED IN HIS 1990 BOOK THE MYTH OF HETEROSEXUAL AIDS THAT THE DISEASE WOULD NOT MAKE APOCALYPTIC INROADS INTO AMERICA'S GENERAL POPULATION IN SCIENCE UNDER SIEGE HE DEBUNKS SUCH POPULAR CANCER THREATS AS ALAR DIOXIN PESTICIDES ELECTROMAGNETIC FIELDS FOOD IRRADIATION AND VIDEO DISPLAY TERMINALS AS WELL AS THE AIRCLEANSING CLAIMS MADE ON BEHALF OF GASOLINE ADDITIVES HIS COMMONSENSE EXPLANATIONS OF THE INTRICACIES OF EPIDEMIOLOGY AND THE ABSURDITIES OF EXTRAPOLATING HUMAN RISK FROM LAB TESTS ON CHEMICALSTUFFED RATS ARE PARTICULARLY TIMELY NOW THAT THE UNREALISTIC ZERORISK STANDARD OF THE 1958 DELANEY CLAUSE IS COMING UNDER CONGRESSIONAL SCRUTINY THE AMERICAN PUBLIC CONSTANTLY WARNED OF THE DANGERS FROM TOBACCO ALCOHOL AND POOR DIET IS RARELY TOLD THAT THESE DWARF THE HEALTH RISKS FROM CHEMICAL RESIDUES MR FUMENTO NOTES THAT IRRATIONAL FEARS HAVE LED TO SUCH COSTLY BOONDOGGLES AS THE EVACUATION OF TIMES BEACH MO AND THE ILLADVISED PROGRAM TO TEAR OUT ASBESTOS FROM SCHOOL BUILDINGS ECOSCAM AND SCIENCE UNDER SIEGE HAVE COMMON FEATURES THEY ANALYZE THE UNDERLYING MOTIVATIONS OF THE ENVIRONMENTAL FEARMONGERS AGREE THAT SCIENCE IS BEING POLITICIZED AND POINT TO THE DANGER OF ADOPTING POLICIES BASED ON PRESS RELEASES OF UNVERIFIED DATA TOGETHER THEY FORM AN EFFECTIVE RESPONSE TO VICE PRESIDENT AL GORE'S SCIENTIFICALLY FLAWED EARTH IN THE BALANCE WITH JOURNALISTS GETTING WISE TO ENVIRONMENTAL HYPE THIS GROWING SKEPTICISM MAY SOON BE TRANSLATED INTO INFORMED ACTIONS BY CITIZENS AND ULTIMATELY BY CONGRESS MR SINGER PROFESSOR OF ENVIRONMENTAL SCIENCES AT THE UNIVERSITY OF VIRGINIA DIRECTS THE WASHINGTONBASED SCIENCE AND ENVIRONMENTAL POLICY PROJECT 9304280067 930428 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE EUROPEAN COMMUNITY PRESSED THE US NOT TO IMPOSE SANCTIONS AGAINST THE 12NATION BLOC FOLLOWING A PARTIAL ACCORD ON GOVERNMENT CONTRACTS THE TWO SIDES AGREED LAST WEEK TO END CURBS ON PURCHASES FROM FOREIGN SUPPLIERS OF HEAVY ELECTRICAL EQUIPMENT AND TO WORK WITH STATE AND LOCAL GOVERNMENTS TO DROP BUY AMERICAN PROVISIONS IN TRANSPORTATION AND WATER JOBS THE EC NOW IS URGING MORE TALKS TO EXTEND THE DEAL TO TELECOMMUNICATIONS CONTRACTS AN IMPORTANT ISSUE FOR THE US AFTER THE PURCHASING DISPUTE WAS PARTLY RESOLVED THE US SAID IT WOULD SCALE BACK PLANNED SANCTIONS THAT WOULD HAVE BLOCKED EUROPEAN COMPANIES FROM AS MUCH AS 50 MILLION IN GOVERNMENT CONTRACTS WASHINGTON PLANS AN ANNOUNCEMENT ON SANCTIONS SOON BUT IT HASN'T SPECIFIED THEIR SCALE SAYING ONLY THEY WILL REFLECT THE DEGREE OF TRADE THE US BELIEVES IT IS LOSING BECAUSE OF BUY EUROPEAN PROVISIONS IN THE EC'S SINGLEMARKET LEGISLATION MORE THAN 100 AUTOPARTS SUPPLIERS ARE TO PARTICIPATE IN A LOS ANGELES SEMINAR ON TOYOTA MOTOR CORP'S BUYING POLICY THE MAY 1011 GATHERING THE THIRD WORLDWIDE BY THE JAPANESE AUTO MAKER AND THE FIRST IN NORTH AMERICA IS AIMED AT BOOSTING TOYOTA'S RELATIONSHIP WITH PARTS MAKERS AND ITS PURCHASES FROM THEM THE SUPPLIERS RANGE FROM ELECTRIC PARTS MAKERS TO TIRE PRODUCERS TOYOTA HAS ANNOUNCED PLANS TO BUY 528 BILLION OF AUTO PARTS FROM NONJAPANESE COMPANIES NEXT YEAR IMPROVED PROSPECTS OF ECONOMIC RECOVERY IN BRITAIN PROMPTED THE BIGGEST INCREASE IN BUSINESS CONFIDENCE IN 10 YEARS THE CONFEDERATION OF BRITISH INDUSTRY SAID THE EMPLOYER GROUP ALSO SAID THAT ITS LATEST INDUSTRIAL TRENDS SURVEY SHOWS EXPORT DEMAND AND DELIVERIES INCREASED THIS YEAR AND THAT IT EXPECTS IN THE NEXT FEW MONTHS THE STRONGEST GROWTH IN ORDERS AND PRODUCTION IN FOUR YEARS IN THIS YEAR'S FIRST FOUR MONTHS EXPORT ORDERS ROSE FOR THE FIRST TIME SINCE EARLY 1990 STILL RECESSION IN MANY EXPORT MARKETS IS EXPECTED TO SLOW THE PACE OF BRITAIN'S ECONOMIC EXPANSION POLES TURNED OUT BY THE THOUSANDS TO BUY SHARES OF WIELKOPOLSKI BANK KREDYTOWY THE FIRST STATE BANK TO BE SOLD TO THE PUBLIC UNDER POLAND'S PLAN TO MODERNIZE THE BANKING SYSTEM THE OFFERING OF 17 MILLION SHARES OR 27 OF POZNANBASED WBK WAS VALUED AT 200 BILLION ZLOTYS 127 MILLION INSTITUTIONAL INVESTORS EARLIER BOUGHT 460000 SHARES OF WBK ONE OF THE LARGEST AND STRONGEST OF NINE COMMERCIAL BANKS CREATED FROM A NETWORK OF REGIONAL BANKS THE GOVERNMENT WILL KEEP 30 OFFER 14 TO WBK EMPLOYEES AND SELL 285 TO THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT TO IMPROVE USE OF ITS FUNDS TO REBUILD FORMER EAST BLOC ECONOMIES THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT WILL INCREASE ITS EQUITY INVESTMENTS IN THE PRIVATE SECTOR THE EBRD FAULTED FOR SPENDING TWICE AS MUCH ON ITSELF AS ON ITS AID MISSION WILL REFOCUS FROM ITS EMPHASIS ON LENDING WHICH HAS BEEN SLOW BECAUSE THE BANK HAS FAVORED SAFE PROJECTS WITH GOVERNMENT GUARANTEES CHAOTIC CONDITIONS IN EASTERN EUROPE HAVE COMPLICATED FINDING CREDITWORTHY PROJECTS FOR THE EBRD'S PROMISED CAPITAL OF 10 BILLION EUROPEAN CURRENCY UNITS 1246 BILLION AFRICA'S GROWTH LAST YEAR WAS RESTRAINED BY NATURAL DISASTERS AND OTHER PROBLEMS RANGING FROM DROUGHT TO CIVIL STRIFE THE UNITED NATIONS ECONOMIC COMMMISSION FOR AFRICA SAID THE CONTINENT'S ECONOMY GREW 23 WHILE THE POPULATION INCREASED 3 RESULTING IN A DROP IN PER CAPITA INCOME THE COMMISSION NOTING AFRICA'S LACK OF INDUSTRIES AND DEPENDENCE ON PRIMARY COMMODITIES FOR EXPORTS EXPECTS EXPANSION TO SLOW TO 15 THIS YEAR AFRICAN NATIONS' FOREIGN DEBT LAST YEAR TOTALED 282 BILLION WITH REPAYMENTS CONSUMING 24 OF EXPORT EARNINGS NATIONAL TELEPHONE MONOPOLIES IN THE EUROPEAN COMMUNITY HAVE WON A SMALL VICTORY IN RESISTING FREER COMPETITION THE EC COMMISSION IS EXPECTED TO APPROVE TODAY A PROPOSAL TO OPEN UP COMPETITION IN PROVIDING BASIC PHONE SERVICES STARTING IN 1998 BUT TELEPHONE COMPANIES SUCCEEDED IN EXCLUDING A PROVISION THAT WOULD HAVE ALLOWED LARGE PHONE USERS TO LEASE CIRCUITS FROM RAILROADS CABLETELEVISION OPERATORS AND OTHER UTILITIES THAT HAVE UNUSED CAPACITY IN THEIR COMMUNICATION NETWORKS BYPASSING THE PHONE MONOPOLIES WOULD HAVE APPLIED PRESSURE ON EUROPE'S NOTORIOUSLY HIGH TELECOMMUNICATIONS COSTS THE EC DECIDED TO STUDY HOW THE SECTOR WOULD BE AFFECTED BY UTILITIES' ENTRY AND THIS COULD DELAY ANY CHANGE FOR YEARS IT ALSO MARKED THE SECOND SETBACK THIS MONTH FOR PROPONENTS OF FASTER CHANGE AFTER A PROPOSAL TO ALLOW MORE COMPETITION STARTING IN 1996 ON CALLS BETWEEN EC STATES WAS ABANDONED THE ENTIRE PACKAGE IS SUBJECT TO APPROVAL BY MEMBER STATES WHICH COULD WATER IT DOWN FURTHER THE CZECH REPUBLIC IN ITS FIRST SUCH WARNING URGED PEOPLE TO STAY OUT OF THE SUN BECAUSE OF DANGERS OF EXTREMELY HIGH ULTRAVIOLET RADIATION AS LEVELS OF PROTECTIVE OZONE ABOVE THE COUNTRY WERE 20 BELOW NORMAL IN THE PAST FEW DAYS LONDONBASED VIRGIN ATLANTIC AIRWAYS SAID IT CANCELED A MASSAGE SERVICE ON TOKYO FLIGHTS AFTER JAPANESE BUSINESSMEN MISCONSTRUED WHAT WAS BEING OFFERED 9304280066 930428 YOUR MONEY MATTERS MORE HOMEOWNERS ARE FIGHTING TAXES BY EARL C GOTTSCHALK JR STAFF REPORTER OF THE WALL STREET JOURNAL HOMEOWNERS IN MANY PARTS OF THE COUNTRY HAVE JUST PAID THEIR PROPERTY TAXES AND A LOT OF THEM ARE HOPPING MAD IN URBAN AREAS IN NEW YORK AND CALIFORNIA FOR EXAMPLE MANY RESIDENTS FOUND THEMSELVES WITH HIGHER TAX BILLS EVEN THOUGH THEIR HOMES ARE WORTH LESS THAN A FEW YEARS AGO OTHERS ARE FED UP THAT THEIR PROPERTY TAXES ARE COSTING THEM BIG BUCKS EVEN THOUGH THEY'VE LOST A JOB OR ARE RETIRED AND LIVING ON A FIXED INCOME IF THIS SOUNDS LIKE YOU TAKE HEART A SMALL BUT GROWING BAND OF HOMEOWNERS ACROSS THE US ARE FILING ASSESSMENT APPEALS WITH THEIR LOCAL GOVERNMENTS AND THOSE WHO HAVE A LEGITIMATE COMPLAINT AND DO THEIR HOMEWORK HAVE A GOOD CHANCE OF WINNING IN THE CHICAGO AREA FOR EXAMPLE THE COOK COUNTY BOARD OF TAX APPEALS REPORTS THAT 57 OF THE HOMEOWNERS WHO APPEALED IN THE PAST FIVE YEARS WON AN ASSESSMENT REDUCTION THE REWARDS CAN BE GREAT MEL KUSSOI A WESTBURY NY REAL ESTATE AGENT REDUCED THIS YEAR'S TAXES ON HIS THREEBEDROOM LONG ISLAND HOME BY 3000 BECAUSE HE APPEALED HIS TAX ASSESSMENT LAST YEAR THE COUNTY HAD MY HOME ON THE TAX ROLLS ASSESSED AT A FAIR MARKET VALUE OF 320000 BUT WITH THE DECLINING MARKET I WOULD BE LUCKY TO GET 225000 FOR MY HOUSE TODAY HE SAYS NOW MR KUSSOI PAYS 5000 A YEAR THE AVERAGE PROPERTY TAX BILL IN NASSAU COUNTY TO BE SURE IF LARGE GROUPS OF HOMEOWNERS IN A CITY ALL GOT THEIR PROPERTY ASSESSMENTS LOWERED THERE WOULD BE PRESSURE ON THE CITY TO RAISE TAX RATES TO MAKE UP THE DIFFERENCE SO FAR HOWEVER THAT HASN'T HAPPENED TAX PROS SAY THAT'S BECAUSE ONLY A SMALL MINORITY OF HOMEOWNERS ACTUALLY TAKE THE TIME AND TROUBLE TO APPEAL IN NASSAU COUNTY ONLY 4 OF THE 360000 HOMEOWNERS APPEALED THEIR ASSESSMENTS LAST YEAR NO NATIONAL STATISTICS ARE AVAILABLE BUT TAX OFFICIALS ESTIMATE THAT ONLY ABOUT 2 OF HOMEOWNERS APPEAL THEIR ASSESSMENTS DEPENDING ON WHERE YOU LIVE YOU MAY HAVE TO START THIS RESEARCH WORK RIGHT AWAY TO SAVE TAXES NEXT YEAR MOST COUNTIES OFFER HOMEOWNERS ONE PERIOD A YEAR TO FILE AN APPEAL ONCE THE DEADLINE HAS PASSED YOU'VE MISSED THE CHANCE FOR THE COMING YEAR IN NASSAU COUNTY A HOTBED OF PROPERTY TAX APPEALS THE FILING PERIOD IS MAY 1 THROUGH MAY 18 IN LOS ANGELES COUNTY THE APPLICATION FOR A DECLINE IN VALUE REASSESSMENT SHOULD BE FILED BY MAY 15 TO CASH IN ON THE INCREASE IN APPEALS A NUMBER OF ASSESSMENT CONSULTING FIRMS HAVE SPRUNG UP IN LONG ISLAND SOUTHERN CALIFORNIA TEXAS AND OTHER AREAS THEY WILL FILE THE APPEAL FOR HOMEOWNERS FOR A FEE AND A PERCENTAGE OF THE TAX SAVINGS SOME TAX PROS SAY THE INDIVIDUAL CAN BE MORE EFFECTIVE THAN A LAWYER OR OTHER CONSULTANT IF THE TAXPAYER DOES THE NECESSARY HOMEWORK YOU HAVE TO BALANCE OFF THEIR COST WHICH CAN BE SEVERAL HUNDRED DOLLARS VS THE POTENTIAL TAX SAVINGS SAYS DAVID KEATING EXECUTIVE VICE PRESIDENT OF THE NATIONAL TAXPAYERS UNION IT ALSO DEPENDS ON HOW COMPLICATED YOUR SITUATION IS IF YOU LIVE IN A DEVELOPMENT WHERE ALL THE HOMES ARE ESSENTIALLY ALIKE AND FIVE RECENTLY SOLD AT PRICES LOWER THAN YOUR ASSESSED FAIR MARKET VALUE YOU CAN DO IT YOURSELF BUT IF YOU HAVE A CUSTOM HOME WITH NO EASY COMPARISONS AND THERE ARE POSSIBLE BIG TAX SAVINGS INVOLVED IT MIGHT BE A GOOD IDEA TO CALL IN PROFESSIONAL HELP MR KUSSOI THE LONG ISLAND RESIDENT HIRED FRED PERRY A DIX HILLS NY ATTORNEY TO FILE HIS APPEAL IT COST HIM A FEE OF 50 AND HALF OF HIS FIRST YEAR'S TAX SAVINGS A LOT OF PEOPLE ARE STILL AFRAID TO DO THIS BUT IT'S WELL WORTH IT SAYS MR KUSSOI WHO WAS ONE OF 13000 NASSAU COUNTY RESIDENTS TO FILE AN APPEAL IN THE COUNTY'S SMALL CLAIMS COURT LAST YEAR A 40 INCREASE FROM 1991 IN MOST STATES PROPERTYTAX CONSULTANTS AREN'T ACCREDITED BY ANY PROFESSIONAL ORGANIZATION SAYS MINDY MCLEES MANAGER OF PROPERTY TAX SERVICES FOR ACCOUNTANTS COOPERS & LYBRAND IN LOS ANGELES IT'S A GOOD IDEA TO CHECK WITH YOUR ASSESSOR'S OFFICE OR YOUR BETTER BUSINESS BUREAU TO SEE IF ANY COMPLAINTS HAVE BEEN LODGED AGAINST THE CONSULTANT CHECK WITH SEVERAL OF THEIR CLIENTS TO SEE IF THEY'VE ACTUALLY REDUCED ASSESSMENTS AND HAVE EXPERIENCE IN THE REALESTATE MARKET IN SOME CITIES PEOPLE HAVE FLOODED INTO THE CONSULTANT BUSINESS TO MAKE A QUICK DOLLAR PROMISING MORE THAN THEY CAN DELIVER THEY'VE SATURATED LOCAL AREAS WITH ADVERTISEMENTS AND OVERWHELMED LOCAL APPEAL BOARDS WITH CASES AS A RESULT THEY'VE GOTTEN A BAD REPUTATION WITH LOCAL BOARDS SAYS MR KEATING SO IT'S WORTH IT TO CHECK THE CONSULTANT'S REPUTATION BEFORE YOU SIGN UP ASK CONSULTANTS TO SPELL OUT IN ADVANCE ALL OF THE FEES AND CHARGES INVOLVED IN MAKING THE APPEAL SOME FIRMS CHARGE NONREFUNDABLE FEES OF AS MUCH AS 200 AND THEN ASK LATER FOR APPRAISAL FEES OF 250 TO MAKE YOUR CASE IN COMPLICATED CASES IT MAY BE WORTH IT FOR YOU TO HIRE AN ACCREDITED REALESTATE APPRAISER TO PROVE A LOWER VALUATION FOR YOUR HOME IF YOU'VE RECENTLY REFINANCED YOUR BANK SHOULD BE ABLE TO PROVIDE YOU WITH A FREE COPY OF THE APPRAISAL BEFORE DECIDING WHETHER TO APPEAL IT'S IMPORTANT TO UNDERSTAND JUST WHAT YOUR HOME'S ASSESSMENT IS BASED ON IN MANY AREAS PROPERTY VALUE IS BASED ON FAIR MARKET VALUE OR WHAT SIMILAR PROPERTIES HAVE SOLD FOR RECENTLY BUT IN OTHER AREAS IT'S BASED ON A FRACTION OF FAIR MARKET VALUE STILL OTHER JURISDICTIONS WILL PUT A VALUE ON THE LAND AND THEN ESTIMATE WHAT IT WOULD COST TO REPLACE THE HOUSE CHECK TO SEE IF YOU'VE BEEN GRANTED THE EXEMPTIONS YOU'RE ENTITLED TO MOST STATES HAVE EXEMPTIONS LOWER TAX RATES OR LOWER ASSESSMENT RATIOS FOR OWNEROCCUPIED HOMES THE ELDERLY DISABLED CITIZENS OR VETERANS LOOK AT YOUR TAX BILL TO SEE IF YOU'VE BEEN PROPERLY CREDITED THIS AMOUNT THEN CHECK THE ACCURACY OF THE ASSESSOR'S MATH THE DESCRIPTION OF YOUR PROPERTY WORK PAPERS AND RECORD CARD ERRORS CAN EASILY CROP UP HERE SAYS MS MCLEES MANY COUNTIES USE MASS APPRAISAL TECHNIQUES AND INACCURATE INFORMATION IS CONTINUED YEAR AFTER YEAR SHE SAYS FINALLY COMPARE THE ASSESSMENT OF YOUR PROPERTY'S VALUE WITH ASSESSMENTS ON THE MOST SIMILAR PROPERTIES IN YOUR AREA ASK A REALESTATE AGENT OR YOUR ASSESSOR'S OFFICE FOR PRICES OF FIVE PROPERTIES OF COMPARABLE SIZE AND TYPE THAT HAVE SOLD RECENTLY IF YOUR HOUSE IS OVERASSESSED COMPARED WITH SALES OF THESE SIMILAR PROPERTIES YOU HAVE AN EXCELLENT CHANCE OF WINNING A REDUCTION IN LOS ANGELES COUNTY HOMEOWNERS NEED ONLY TO FILL OUT A ONEPAGE APPLICATION LISTING THE SALE OF THREE COMPARABLE HOMES TO GET A DECLINE IN VALUE REASSESSMENT IF THIS FAILS THEY STILL HAVE THE CHANCE TO PRESENT THEIR CASE IN A MORE FORMAL FASHION TO THE COUNTY ASSESSMENT APPEALS BOARD IF YOU GET TO THE FORMAL APPEAL BEFORE A BOARD MR KEATING OF THE TAXPAYERS UNION SUGGESTS YOU ATTEND A HEARING OF THE BOARD IN ADVANCE TO SEE WHAT HAPPENS PREPARE A WRITTEN PRESENTATION AND STICK TO THE FACTS IN YOUR CASE KEEP IN MIND THAT THE APPEALS BOARD DOESN'T DO ANYTHING BUT REVIEW YOUR ASSESSMENT HE SAYS CRITICIZING THE INCOMPETENCY OF LOCAL OFFICIALS OR THE HIGH LEVEL OF TAXES WON'T HELP YOUR CASE CHECK ACCURACY OF ASSESSOR'S MATH PROPERTY DESCRIPTION MAKE SURE ALL DEDUCTIONS ARE GRANTED LOCATE AT LEAST FIVE COMPARABLE PROPERTIES THAT SOLD RECENTLY AND COMPARE YOUR PROPERTY'S ASSESSMENT MAKE AN INFORMAL APPEAL TO ASSESSOR IF ASSESSOR DOESN'T AGREE FILE A FORMAL APPEAL ATTEND APPEALS BOARD HEARING TO GET FEEL FOR PROCESS PREPARE WRITTEN SUMMARY OF YOUR CASE 9304280065 930428 HOSPITAL GROUP THREATENS MOVE AGAINST BAXTER PREMIER SAYS IT MAY CURTAIL BUSINESS WITH SUPPLIER OVER ARAB BOYCOTT CASE BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL ONE OF BAXTER INTERNATIONAL INC'S LARGEST CUSTOMERS THE PREMIER HOSPITALS ALLIANCE THREATENED TO CURTAIL MILLIONS OF DOLLARS IN BUSINESS WITH BAXTER OVER THE COMPANY'S RECENT FELONY GUILTY PLEA THE MOVE BY PREMIER A WESTCHESTER ILL CONSORTIUM OF 150 US HOSPITALS TURNS UP THE HEAT ON BAXTER CHAIRMAN VERNON R LOUCKS JR OVER BAXTER'S VIOLATION OF A FEDERAL LAW AGAINST COOPERATING WITH THE ARAB BOYCOTT OF ISRAEL IN A LETTER TO BAXTER DIRECTORS ALBERT GILBERT PREMIER'S CHAIRMAN SAID PREMIER OFFICIALS HAD AGREED UNANIMOUSLY TO PUT BAXTER ON NOTICE THAT PREMIER WILL BEGIN TO DISENGAGE FROM ITS BUSINESS RELATIONSHIP WITH BAXTER ACCORDING TO A PREMIER STATEMENT DR GILBERT EXPRESSED CONCERN OVER BAXTER BUSINESS METHODS ETHICS AND BEHAVIOR OVER THE PAST FOUR YEARS THE PREMIER STATEMENT SAID PREMIER OFFICIALS SAID THEY WILL BEGIN TO SCRUTINIZE ALL OF THE ESTIMATED 250 MILLION IN ANNUAL PURCHASES THAT PREMIER HOSPITALS MAKE FROM BAXTER WITH AN EYE TOWARD FINDING ALTERNATIVE SUPPLIERS PREMIER EXECUTIVES HAVE REQUESTED A MEETING THIS WEEK WITH OUTSIDE BAXTER DIRECTORS SCHEDULED TO ATTEND BAXTER'S ANNUAL MEETING FRIDAY IN CHICAGO BAXTER OF DEERFIELD ILL IS THE WORLD'S LARGEST HOSPITAL SUPPLIER PREMIER OFFICIALS HINTED THAT THE OUTCOME OF SUCH A MEETING WITH OUTSIDE DIRECTORS COULD CHANGE THEIR VIEWS ON CURTAILING ITS BUSINESS WITH BAXTER BUT THEY DECLINED TO COMMENT ON WHETHER MR LOUCKS'S REMAINING AT BAXTER WOULD BE A FACTOR IN ANY SUCH CHANGE OF COURSE AT ISSUE IS A MULTIYEAR BAXTER CAMPAIGN INITIATED BY MR LOUCKS TO ESCAPE THE ARAB BOYCOTT LIST THAT EFFORT ULTIMATELY LED TO BAXTER'S ADMISSION OF A FEDERAL FELONY PREMIER'S ACTION IS THE MOST SIGNIFICANT IN A SERIES OF MOVES HEIGHTENING THE PRESSURE ON BAXTER AND MR LOUCKS SUCH JEWISH GROUPS AS THE ANTIDEFAMATION LEAGUE AND AMERICAN JEWISH CONGRESS HAVE LONG CRITICIZED THE COMPANY'S MIDDLE EASTERN ACTIONS ALSO THE DEFENSE DEPARTMENT IN RECENT WEEKS BEGAN THE PROCESS OF DECIDING WHETHER BAXTER SHOULD BE BARRED FROM ALL BUSINESS WITH THE GOVERNMENT AND STUDENTS AND OTHERS AT YALE UNIVERSITY HAVE CALLED FOR MR LOUCKS TO RESIGN AS YALE BOARD CHAIRMAN IN RECENT DAYS YALE LAW GRADUATE AND HARVARD LAW PROF ALAN DERSHOWITZ JOINED THAT EFFORT OPPOSING MR LOUCKS MR LOUCKS HAS SAID HE HAD NO INTENTION OF RESIGNING FROM EITHER BAXTER OR YALE ANTHONY RUCCI BAXTER SENIOR VICE PRESIDENT SAID PREMIER HAS REGISTERED THEIR CONCERNS WITH BAXTER THAT THEY NEED TO GET MORE COMFORTABLE WITH WHAT HAPPENED IN THE ARAB BOYCOTT MATTER WE ARE COMMITTED TO MAKING IT CLEAR TO PREMIER THAT THEY DON'T HAVE TO BE CONCERNED IN RECENT DAYS THE CONSORTIUM'S EXECUTIVES SENT COPIES OF BAXTER'S PLEA AGREEMENT TO EXECUTIVES AT ALL 150 MEMBER HOSPITALS ONETHIRD OF THOSE HOSPITALS ARE PREDOMINANTLY JEWISHRUN BAXTER'S GUILTY PLEA ISN'T THE ONLY FACTOR LEADING TO PREMIER'S DECISION TO POSSIBLY CURTAIL BUSINESS ANOTHER SAID SPOKESWOMAN SUSAN NALEPA WAS BAXTER'S DECISION TO SPIN OFF ITS CAREMARK INC OPERATIONS AND ALLOW CAREMARK TO CONTINUE TO COMPETE WITH HOSPITALS FOR HOME CARE OF PATIENTS PREMIER OFFICIALS SAID THEY HAD HOPED BAXTER WOULD INSTEAD WITHDRAW FROM THAT BUSINESS ALSO PREMIER IS KNOWN TO HAVE BECOME EMBROILED IN A PAST DISPUTE WITH BAXTER OVER PRICING OF HOSPITAL SUPPLIES BUT PREMIER OFFICIALS HAVE MADE IT CLEAR THAT THE ARAB BOYCOTT MATTER PRECIPITATED YESTERDAY'S ACTION 9304280064 930428 BUSINESS BRIEF MARK IV INDUSTRIES INC FIRM PLANS TO SELL FOUR UNITS TO DANAHER FOR 35 MILLION MARK IV INDUSTRIES INC SAID IT AGREED TO SELL FOUR BUSINESSES MAKING COMPUTERIZED INSTRUMENTS AND CONTROLS TO DANAHER CORP FOR ABOUT 35 MILLION MARK IV WHICH MAKES POWER TRANSFER MASS TRANSIT AND AUDIO EQUIPMENT SAID THE OPERATIONS TO BE SOLD INCLUDE ITS LFE INSTRUMENTS GRAPHIC INSTRUMENTS AND EAGLE INDUSTRIAL PRODUCTS DIVISIONS AND MARK IV INSTRUMENTS LTD A BRITISH UNIT THE AMHERST NY COMPANY SAID THE TRANSACTION WON'T AFFECT EARNINGS AND PROCEEDS ARE TO BE USED FOR GENERAL CORPORATE PURPOSES MARK IV SAID THE BUSINESSES HAD COMPBINED SALES OF ABOUT 54 MILLION IN THE FISCAL YEAR ENDED FEB 28 1993 OUT OF THE COMPANY'S TOTAL OF 122 BILLION WASHINGTON DCBASED DANAHER MAKES TOOLS TRANSPORTATION PRODUCTS AND PROCESS CONTROLS 9304280063 930428 CORPORATE FOCUS BORLAND DEFIES EXPECTATIONS AND POSTS A HEALTHY PROFIT SOFTWARE MAKER WAS LEFT FOR DEAD BUT ITS CHIEF RELISHED THE CHALLENGE BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL SCOTTS VALLEY CALIF LUCKILY FOR PHILIPPE KAHN HE IS AT HIS BEST WHEN SOFTWARE MAKER BORLAND INTERNATIONAL INC SEEMS HEADED FOR DISASTER WHEN PHILIPPE IS AT THE BRINK THAT'S WHEN HE'S AT HIS MOST BRILLIANT SAYS BRAD SILVERBERG A FORMER BORLAND DEVELOPMENT CHIEF WHO IS NOW A VICE PRESIDENT AT MICROSOFT CORP HE LOVES WHEN PEOPLE ARE SAYING BORLAND CAN'T DO THIS OR THAT YESTERDAY MR KAHN BORLAND'S CHIEF EXECUTIVE OFFICER ONCE AGAIN DELIGHTED IN JILTING HIS CRITICS THE RESULTS FOR ITS FOURTH QUARTER ENDED MARCH 31 DEFIED EXPECTATIONS OF A FEW MONTHS AGO WHEN MANY ANALYSTS FELT BORLAND A SUPPLIER OF DATABASE SPREADSHEET AND TOOLS PROGRAMS FOR PERSONAL COMPUTERS MIGHT BE MORTALLY WOUNDED THE REASONS FOR THE SOLID QUARTER LAY IN MR KAHN'S GUTSY DECISION TO SLASH PRICES BY MORE THAN HALF ON BORLAND'S FIRST WINDOWS SPREADSHEET AND DATABASE PROGRAMS AS WELL AS STRINGENT COST CONTROLS NET INCOME FOR THE QUARTER TOTALED 51 MILLION OR 19 CENTS A SHARE COMPARED WITH A LOSS OF 269 MILLION OR 105 A SHARE A YEAR EARLIER REVENUE INCREASED ONLY SLIGHTLY TO 1171 MILLION FROM 1168 MILLION ANALYSTS WERE IMPRESSED WITH BORLAND'S RESULTS BUT NOT READY TO FORGET THE DASHED EXPECTATIONS OF THE RECENT PAST SAYS MICHELLE PRESTON AN ANALYST AT MERRILL LYNCH CAPITAL MARKETS AND ONCE ONE OF THE BIGGEST BULLS ON BORLAND THE COMPANY MISSED A BIG WINDOW OF OPPORTUNITY AND NOW FACES AN UPHILL BATTLE EVEN WITH THIS BOUNCEBACK QUARTER PHILIPPE REMAINS ON THE DEFENSIVE THIS IS PRECISELY HOW MR KAHN LIKES IT SOME SAY SINCE STARTING BORLAND TEN YEARS AGO HE HAS HAD SO MANY UPS AND DOWNS THAT MR SILVERBERG WONDERS CAN HE MAINTAIN SUCCESS OR WILL HE GO THROUGH A DOWNSWING MR KAHN BRISTLES AT THE SUGGESTION THAT HE HARBORS A KIND OF BUSINESS DEATH WISH THOUGH HE CONCEDES HE IS IMPATIENT WITH ROUTINE I LIKE TO WAKE UP IN THE MORNING AND KNOW THAT UNEXPECTED THINGS WILL HAPPEN HE SAYS BUT I DON'T WANT THINGS TO GO BADLY JUST 18 MONTHS AGO THERE SEEMED LITTLE CHANCE OF THAT BORLAND CATAPULTED INTO THE FRONT RANKS OF THE SOFTWARE INDUSTRY WITH A 440 MILLION ACQUISITION OF DATABASE LEADER ASHTONTATE BY OCTOBER 1991 A FEW SOFTWARE ANALYSTS WERE SO BULLISH ON BORLAND THEY FELT THE COMPANY MIGHT EVEN OUTPACE MICROSOFT IN THE NEAR TERM THEN THE ROOF CAVED IN MR KAHN A NATIVE OF FRANCE WHO NOW LEGALLY RESIDES IN THE US WAS OVERWHELMED BY THE TASK OF PUSHING OUT A NEW GENERATION OF SOFTWARE FOR WINDOWS PERSONAL COMPUTERS KEY PRODUCTS WERE DELAYED FOR MANY MONTHS BECAUSE OF MR KAHN'S GOFORBROKE DECISION TO MAKE MAJOR IMPROVEMENTS IN THE COMPANY'S OLDER DOS APPLICATIONS RATHER THAN QUICKLY TRANSLATING THEM FOR WINDOWS BY LATE LAST YEAR BORLAND'S CASH WAS IN PERILOUSLY SHORT SUPPLY AND THE ROLLOUT OF A KEY SPREADSHEET PACKAGE HAD BEEN BOTCHED MEANWHILE MICROSOFT NEARLY TEN TIMES BORLAND'S SIZE HAD CHARGED INTO MR KAHN'S DATABASE STRONGHOLD INTRODUCING AN APPEALING AND INEXPENSIVE DATABASE PROGRAM THAT WAS SETTING SALES RECORDS MICROSOFT ALSO BOUGHT A SMALL DATABASE SUPPLIER THAT OFFERED A CLONE OF ASHTONTATE'S FLAGSHIP DBASE PROGRAM UNDER PRESSURE FROM MICROSOFT BORLAND'S PROSPECTS SANK WE THOUGHT THE OUTSIDE WORLD WAS OVERREACTING RECALLS SPENCER LEYTON BORLAND'S SENIOR VICE PRESIDENT FOR BUSINESS DEVELOPMENT MR KAHN INSISTED MICROSOFT'S FORAY INTO DATABASES HAD NOT WIPED OUT THE VALUE OF BORLAND'S ACQUISITION OF ASHTONTATE BUT IN DECEMBER HE TOOK THE PAINFUL STEP OF LAYING OFF 350 OR 15 OF BORLAND'S EMPLOYEES AND VOWED HE WOULD DISMISS ANYONE AT THE COMPANY IF SURVIVAL DICTATED SUCH ACTION SOME EMPLOYEES PRIVATELY BLAMED BORLAND'S FINANCIAL WOES ON MR KAHN'S OWN EXTRAVAGANCE FOR INSTANCE HE TRUCKED HIS MOTORCYLE TO A TRADE SHOW LAST FALL AND HE HAS RELEASED A COMPACT DISK OF HIS OWN MUSIC AS A HOLIDAY GIFT TO BORLAND CUSTOMERS THREE YEARS IN ROW AND TO OUTSIDERS THE COMPANY'S PARTIALLY FINISHED 90 MILLION CORPORATE CAMPUS DESIGNED TO SUBSUME BORLAND'S MANY OFFICES STREWN AROUND THIS TINY CITY SEEMED POSITIVELY DECADENT THE CAMPUS'S HEALTH CLUB WITH A FULLSIZE BASKETBALL COURT POOL WEIGHT ROOM AND TWO TENNIS COURTS SMACKS OF EXCESS AND BORLAND CHOSE TO PAY FOR THE COMPLEX WITH CASH BUILDING A NEW HEADQUARTERS SOMETIMES IS A SIGN THAT MANAGEMENT IS DISTRACTED BY ITS OWN CELEBRITY THIS IS ONE OF THOSE TIMES SAYS PETER ROGERS AN ANALYST AT ROBERTSON & STEPHENS INDEED EVEN SOME WITHIN BORLAND BEGAN TO QUESTION THE EXPENSE OF THE CAMPUS ESPECIALLY AFTER THE COMPANY THE WORLD'S FIFTHLARGEST SUPPLIER OF PC SOFTWARE REPORTED A WHOPPING 613 MILLION LOSS ON DECLINING SALES FOR THE QUARTER ENDED DEC 31 BUT IT WAS TOO LATE TO CHANGE COURSE BECAUSE I'M SITTING HERE WITH AN 80 COMPLETED BUILDING SAYS ALAN HENRICKS CHIEF FINANCIAL OFFICER FOR MR KAHN THE AWFUL DECEMBER QUARTER WAS SOBERING HE MOVED TO REORGANIZE THE COMPANY HANDING OFF OVERALL SUPERVISION FOR NEW PRODUCTS TO ROBERT WARFIELD AND SLASHING PRICES ON NEW SPREADSHEET AND DATABASE PACKAGES I NEVER FELT WE WERE AT THE BRINK HE SAID EARLIER THIS MONTH MR KAHN'S CONFIDENCE IS ROOTED IN SOMETHING MORE THAN HIS OWN EBULLIENCE OVER THE YEARS HE HAS ATTRACTED SOME OF THE FINEST CODE WRITERS IN THE INDUSTRY AND HE HAS TAKEN PAINS TO MAKE THEM FEEL SPECIAL WE HAVE A CLASS SYSTEM AT BORLAND SAYS MR HENRICKS AND THE RULING CLASS IS RESEARCH AND DEVELOPMENT MR KAHN FEELS EVERY BIT A PART OF THE ELITE CREW THOUGH HE NO LONGER DESIGNS PRODUCTS HIMSELF UNTIL RECENTLY HE KEPT HIS OFFICE NEAR HIS CODE WRITERS NOW HE SITS AMONG THE COMPANY'S MARKETEERS AND DURING HIS MANY TRAVELS HE OFTEN HACKS AWAY AT SOFTWARE PROGRAMS IN PROGRESS THESE TESTDRIVES PROMPT A STREAM OF SUGGESTIONS FROM MR KAHN WHO KEEPS WIDERANGING TIES TO DEVELOPERS MR WARFIELD AND OTHERS WELCOME MR KAHN'S ADVICE BUT WORRY THAT HIS ENTHUSIASM SOMETIMES IS OVERWHELMING HE'LL PUSH MY GUYS ON SCHEDULES MR WARFIELD SAYS I HAVE TO BE THE BUFFER THERE SOMETIMES JUST GETTING MR KAHN WHO OWNS 42 OF BORLAND'S 26 MILLION OUTSTANDING SHARES TO LISTEN TO SOMEONE ELSE'S POINT OF VIEW IS A CHORE BUT SENIOR MANAGERS HAVE THEIR WAYS I'LL TAKE PHILIPPE FOR A WALK UP A BIG HILL BEHIND OUR OFFICE SAYS DOUGLAS ANTONE BORLAND'S SENIOR VICE PRESIDENT FOR SALES BY THE TIME WE'RE HALF WAY UP HE'S TOO OUT OF BREATH TO SAY MUCH AND I GET IN MY POINTS 9304280062 930428 BUSINESS BRIEF CONSOLIDATED EDISON CO NET JUMPED 32 FOR QUARTER ON RATE RISES COLD WINTER CONSOLIDATED EDISON CO REPORTED A 32 JUMP IN FIRSTQUARTER NET INCOME BOLSTERED BY RATE INCREASES AND COLD WINTER WEATHER EARLIER THIS YEAR THE NEW YORKAREA UTILITY REPORTED FIRSTQUARTER NET ROSE TO 1539 MILLION OR 62 CENTS A SHARE A YEAR EARLIER CON ED HAD PROFIT OF 1165 MILLION OR 47 CENTS A SHARE REVENUE CLIMBED 89 TO 16 BILLION FROM 15 BILLION A YEAR EARLIER CON ED SAID THE HIGHER EARNINGS REFLECT THE FIRST FULL YEAR OF A THREEYEAR ELECTRIC RATE AGREEMENT THAT BECAME EFFECTIVE LAST APRIL UNDER WHICH IT EARNED THE MAXIMUM INCENTIVES ALLOWED FOR EFFICIENCY AND FUELCOST REDUCTION PROGRAMS ELECTRIC SALES VOLUME EXCLUDING SALES TO OTHER UTILITIES ROSE 32 FROM A YEAR EARLIER FIRM GAS SALES VOLUME CLIMBED 89 AND STEAM SALES VOLUME ROSE 5 OPERATING EARNINGS FROM ELECTRICITY SALES WHICH ROSE 78 FOR THE PERIOD TO 11 BILLION INCLUDED 182 MILLION ACCRUED UNDER A REVENUE ADJUSTMENT MECHANISM IN THE RATE AGREEMENT REFLECTING THE SHORTFALL IN SALES FROM THE UTILITY'S FORECAST 9304280061 930428 WHO'S NEWS AMEX TAPS STEFANELLI TO SUCCEED BOEHMLER IN NEW BUSINESS GROUP NEW YORK THE AMERICAN STOCK EXCHANGE NAMED JOSEPH STEFANELLI EXECUTIVE VICE PRESIDENT OF NEW BUSINESSEQUITIES SUCCEEDING SARAH BOEHMLER WHO RESIGNED TO PURSUE OTHER INTERESTS MR STEFANELLI 54 YEARS OLD HAD BEEN SENIOR VICE PRESIDENT OF DERIVATIVE SECURITIES MS BOEHMLER COULDN'T BE REACHED FOR COMMENT ADDITIONALLY RALPH RAFANIELLO 45 PREVIOUSLY VICE PRESIDENT OF FLOOR OPERATIONS WAS NAMED SENIOR VICE PRESIDENT OF THAT AREA A NEW POST LOIS SCHMIDT 42 VICE PRESIDENT OF CORPORATE FINANCE AND ANALYSIS WAS NAMED SENIOR VICE PRESIDENT OF THE AREA SHE ALSO ASSUMES THE FUNCTION OF SENIOR VICE PRESIDENT OF CORPORATE RELATIONS FROM DELIA EMMONS 45 NOW SENIOR VICE PRESIDENT INVESTOR RELATIONS A NEW POST ALSO FRANK MAGNANI 37 PREVIOUSLY MANAGING DIRECTOR OF OPTIONS MARKETING WAS NAMED VICE PRESIDENT OF DERIVATIVE SECURITIES SALES A NEW POST RICHARD MIKALIUNAS 50 PREVIOUSLY MANAGING DIRECTOR OF THE DERIVATIVES AREA WAS NAMED VICE PRESIDENT OF DERIVATIVE SECURITIES MARKETING A NEW POST ANDREW PREZIOSI 48 PREVIOUSLY DIRECTOR OF THE EQUITY MARKETS AREA WAS NAMED VICE PRESIDENT OF THE AREA A NEW POST AND JOHN STIMPFEL 50 PREVIOUSLY CORPORATE CONTROLLER OF THE FINANCE AREA WAS NAMED VICE PRESIDENT OF THAT AREA A NEW POST 9304280060 930428 MARKETING FRUIT'S LOOM WEAVES SOME NEW THREADS IN EFFORT TO SHED UNDERWEARONLY IMAGE BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO FRUIT OF THE LOOM SEES A GAP IN ITS PRODUCT LINE DOWN THE ROAD I BELIEVE WE WILL BE A SERIOUS COMPETITOR TO GAP INC SAYS FRUIT OF THE LOOM INC'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILLIAM FARLEY THE 50YEAROLD MR FARLEY IS NONETOOMODEST AND RETAIL ANALYSTS ROLL THEIR EYES AT SUCH TALK BUT NO ONE QUESTIONS THAT FRUIT IS AGGRESSIVELY MOVING TO CHANGE ITS IMAGE AS A PURVEYOR ONLY OF MEN'S AND BOYS' UNDERCLOTHES WE'RE THE LEGACY OF UNDERWEAR LAMENTS MR FARLEY THE COMPANY IS SUCCESSFULLY PUSHING AN EXPANDING ASSORTMENT OF NONUNDERWEAR APPAREL INCLUDING TSHIRTS SWEAT SHIRTS TURTLENECKS AND SHORTS THROUGH MASSMERCHANT CHANNELS THAT CLOTHING LINEUP ADDS FRUIT OF THE LOOM TO THE GROWING NUMBER OF APPAREL MAKERS WOOING CONSUMERS WHO CRAVE GAP'S BASIC APPAREL BUT NOT ITS PRICES FRUIT OFFERS SIMILAR ALLCOTTON PRODUCTS AT LOWER PRICES AND THE STRATEGY APPEARS TO BE WORKING NONUNDERWEAR APPAREL NOW ACCOUNTS FOR ABOUT 60 OF FRUIT'S 186 BILLION IN ANNUAL SALES UP FROM 33 IN 1986 THE MARKETING EFFORT IS BACKED BY A FRESH ADVERTISING CAMPAIGN CALLED CLOTHES FOR THE BEST OF YOUR LIFE IT FEATURES A FAMILY PLAYING IN FRUIT OF THE LOOM TOGS WITH AN OCCASIONAL CLOSEUP OF THE APPLEANDGRAPES CLUSTER FRUIT'S LONGTIME SYMBOL IN EUROPE FRUIT IS TESTING A STOREWITHINASTORE CONCEPT AT SOME CHAINS THAT ALLOW IT TO SET ASIDE A SPECIAL AREA FOR ITS RUGBY SHIRTS MOCK TURTLENECKS AND OTHER FASHION ITEMS MR FARLEY THINKS A SIMILAR CONCEPT COULD SUCCEED IN THE US IMAGINE A KMART WITH A STOREWITHINASTORE CALLED A FRUIT STORE HE SAYS IMAGINE IT LOOKING QUITE SIMILAR TO THE GAP NOW IMAGINE A SHIRT SELLING FOR SAY 19 AT GAP AND SELLING FOR 6 AT KMART MR FARLEY AND OTHER FRUIT EXECUTIVES DON'T EXPECT ALL THIS TO HAPPEN OVERNIGHT COMPARING FRUIT'S EUROPEAN STOREWITHINASTORE SECTIONS WITH GAP STORES IS A STRETCH ACKNOWLEDGES MARK STEINKRAUSS FRUIT'S VICE PRESIDENT INVESTOR RELATIONS AND IN THE US HE NOTES THE BIG MASS MERCHANTS HAVE THEIR OWN IDEAS ABOUT WHAT THEY WANT IN A STORE WHICH WOULD MAKE IT DIFFICULT FOR FRUIT TO DICTATE NEW WAYS TO DISPLAY ITS APPAREL BESIDES IT WOULD BE TOUGH TO GRAB SUCH A DOMINANT POSITION IN THE HOTLY COMPETITIVE BASICAPPAREL MARKET THE CLOTHING SECTIONS OF SUCH MASS MERCHANDISERS AS KMART CORP ARE JAMMED WITH LOOKALIKE SHIRTS MADE BY FRUIT SARA LEE CORP VF CORP RUSSELL CORP AND MANY OTHERS CHICAGOBASED SARA LEE IN PARTICULAR IS ALSO EXPANDING ITS HANES BRAND BEYOND UNDERWEAR SUCH AMBITION IS CLASSIC FARLEY ALBEIT ON A MUCH MORE FOCUSED SCALE THAN IN THE 1980S WHEN THE FORMER ENCYCLOPEDIA SALESMAN BUILT AN EMPIRE FARLEY INC WITH JUNK BONDS EVENTUALLY SEVERE DEBT PROBLEMS AND AN UNTIRING EGO THE FINANCIER HAD EVEN MULLED A RUN FOR THE US PRESIDENCY IN 1988 NEARLY RUINED HIM FRUIT HAS A LOT GOING FOR IT IT HANDLES EVERY STEP OF THE MANUFACTURING PROCESS ITSELF AND HAS BECOME ONE OF THE LOWESTCOST PRODUCERS IN THE INDUSTRY THAT GIVES IT THE FLEXIBILITY TO BEAT RIVALS' PRICES FRUIT ONLY PAYS OUTSIDE MANUFACTURERS TO HELP MAKE ITS PRODUCTS WHEN IT'S EXPERIMENTING SUCH AS WITH THE EUROPEANSTYLE UNDERWEAR IT INTRODUCED LAST YEAR MORECONSERVATIVE US MEN TYPICALLY DON'T FAVOR THOSE BIKINI BRIEFS HIGH THIGHS AND BOXERSSANSFLY ALSO THE BIG DISCOUNTERS HAVE SNAPPED UP FRUIT PRODUCTS WHICH ALSO INCLUDE BVD AND MUNSINGWEAR BRANDS SINCE THEY BEGAN EMPHASIZING BRANDED MERCHANDISE SEVERAL YEARS AGO SUBSEQUENTLY FRUIT BENEFITED FROM CONSUMER MIGRATIONS TO SUCH DISCOUNTERS AS WALMART STORES INC AND DAYTON HUDSON CORP'S TARGET STORES ALSO FRUIT HAS LESS EXPOSURE TO HARD TIMES BECAUSE CONSUMERS BUY NEW UNDERWEAR REGARDLESS OF THE ECONOMY TODAY DEMAND IS SO HEAVY FOR FRUIT PRODUCTS THAT IT HAS AN UNDERCAPACITY PROBLEM WE'RE STILL BEHIND THE EIGHT BALL ON A NUMBER OF PRODUCT LINES AND EXPECT TO BE CHASING THE DEMAND THROUGH 1994 SAYS FRUIT'S MR STEINKRAUSS THIS YEAR FRUIT EXPECTS TO SPEND 225 MILLION ON CAPITAL PROJECTS MOSTLY TO ADD PRODUCTION CAPACITY BUT FRUIT PRODUCTS AREN'T THE ONLY ONES IN DEMAND A WALMART STORE IN SUBURBAN CHICAGO FOR EXAMPLE OFFERS COLORED TSHIRTS MADE BY FRUIT SARA LEE'S HANES AND RUSSELL'S JERZEES AMONG OTHERS ALL WITH COMPARABLE QUALITY AND PRICES FRUIT ESPECIALLY FACES KNOCKDOWN DRAGOUT COMPETITION FROM HANES IN THE MEN'S AND BOYS' UNDERWEAR MARKET WHERE THE COMPANIES RESPECTIVELY HOLD 39 AND 30 SHARES OF THE 11 BILLIONAYEAR MARKET SAYS MR STEINKRAUSS THE TWO RIVALS' PRODUCTS LITERALLY FACE OFF IN THE AISLES OF MASS MERCHANTS PRICE WARS ARE RAMPANT CONSIDER FRUIT OFFERED MERCHANTS INCENTIVES TO BUY IN DECEMBER STEALING SOME OF RIVALS' FIRSTQUARTER SALES HANES COUNTERED WITH A REBATE ON ALL TSHIRTS IN FEBRUARY ONLY TO HAVE FRUIT RESPOND WEEKS LATER WITH A DISCOUNT ON SOME OF ITS WHITE TSHIRTS BOTH MR FARLEY AND SARA LEE'S CHAIRMAN JOHN H BRYAN HAD LITTLE APPAREL EXPERIENCE BUT THEY'RE SAVVY MARKETERS THEIR COMPANIES DOMINATE AT THE EXPENSE OF SMALLER PLAYERS WHO LACK AS MUCH MARKETING MUSCLE RUSSELL OF ALEXANDER CITY ALA HAS LOST MARKET SHARE TO BOTH SARA LEE AND FRUIT IN CRITICAL DISTRIBUTOR CHANNELS ALSO ONEITA INDUSTRIES INC AND ANDREWS SC MAKER OF SPORTSWEAR AND INFANTS CLOTHING RECENTLY ANNOUNCED THAT 1993 EARNINGS ARE LIKELY TO FALL BECAUSE OF PRICE CUTTING REBATES AND ORDER CANCELLATIONS FRUIT AND SARA LEE ARE ALSO LEADING THE US PACK ABROAD IN EUROPE SARA LEE IS RAPIDLY EXPANDING ITS DIM BRAND WHICH INCLUDES UNDERWEAR AND ALSO ITS CHAMPION APPAREL AND FRUIT WHICH DOESN'T SELL UNDERWEAR IN EUROPE HAS BEEN ABLE TO PEDDLE ITS OTHER CLOTHES AS FASHION THERE IT'S COMMON FOR INSTANCE TO SEE YOUNG ITALIANS SPORTING RUGBY SHIRTS WITH THE FRUIT CLUSTER EMBLAZONED ON THE LEFT BREAST FRUIT'S SALES IN EUROPE LAST YEAR SURGED 42 TO 1823 MILLION WITH ADDITIONAL FOREIGN EXPANSION MR FARLEY PLANS TO MAKE FRUIT A 3 BILLION COMPANY BY 1996 AND HE CALLS ONE ANALYST'S PREDICTION THAT FRUIT COULD SOMEDAY BE THE PEPSI OF APPAREL A GOOD ANALOGY PART OF FRUIT'S STRATEGY IS TO KEEP INTRODUCING NEW PRODUCT LINES PARTLY THROUGH ALLIANCES WITH OTHER COMPANIES BECAUSE WOMEN OFTEN BUY THE UNDERWEAR FOR THE WHOLE FAMILY THEY'RE A KEY TARGET FRUIT HAS ROUGHLY A 17 SHARE OF THE WOMEN'S AND GIRLS' UNDERWEAR MARKET BEHIND HANES'S 19 HANES HAS A STRONG ADVANTAGE IN THE BRA MARKET WITH ITS BALI JOGBRA AND RECENTLY ACQUIRED PLAYTEX BRANDS BUT FRUIT LAST YEAR INTRODUCED BRAS THROUGH A LICENSE AGREEMENT WITH WARNACO GROUP INC AND THE TWO RECENTLY ROLLED OUT SUCH ITEMS AS SLIPS AND CAMISOLES ALSO FRUIT LAST YEAR BEGAN A JOINT VENTURE WITH THE WILSON SPORTING GOODS CO UNIT OF FINLAND'S AMER GROUP LTD TO CREATE AMONG OTHER THINGS A HEAVIER FANCIERSTITCHED SWEAT SHIRT WITH THE WILSON BRAND TO COMPETE WITH THE POPULAR CHAMPIONBRAND VERSION BY SARA LEE THERE'S NOT A HELL OF A LOT OF FASHION IN FRUIT PRODUCTS MR STEINKRAUSS CONCEDES BUT WE'D LIKE TO BRING IT UP A LITTLE 9304280059 930428 BUSINESS BRIEF TYCO LABORATORIES INC FISCAL 3RDQUARTER NET ROSE DESPITE SLIGHT DROP IN SALES TYCO LABORATORIES INC REPORTED A 10 INCREASE IN FISCAL THIRDQUARTER NET INCOME DESPITE A SLIGHT SALES DECLINE AND SAID IT EXPECTS TO TAKE CHARGES OF UP TO 95 MILLION IN THE FOURTH QUARTER RELATED TO RESTRUCTURING COSTS AND RETIREE HEALTH BENEFITS PROVISIONS THE EXETER NH MAKER OF FIRE PROTECTION SYSTEMS ELECTRONIC PARTS AND PACKAGING MATERIALS SAID NET FOR THE QUARTER ENDED MARCH 31 ROSE TO 259 MILLION OR 57 CENTS A SHARE FROM 234 MILLION OR 51 CENTS A SHARE A YEAR EARLIER SALES FELL 1 TO 7412 MILLION FROM 7516 MILLION IN THE YEAREARLIER QUARTER THE COMPANY SAID APPROXIMATELY 65 MILLION TO 75 MILLION OF THE ANTICIPATED CHARGES STEMMED FROM THE ADOPTION OF TWO NEW ACCOUNTING STANDARDS RELATED TO POSTRETIREMENT HEALTH BENEFITS AND INCOME TAXES THE BALANCE OF THE CHARGES ARE LINKED TO THE COMPANY'S PLAN TO DOWNSIZE ITS NORTH AMERICAN DISTRIBUTION ORGANIZATION REDUCE INVENTORY AND LOWER OVERHEAD COSTS IN ITS FLOW CONTROL AND FIRE PROTECTION SEGMENT OF THE BUSINESS 9304280058 930428 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 AMERICAN TELEPHONE & TELEGRAPH CO 400 MILLION OF NOTES DUE MAY 4 1995 PRICED AT PAR TO YIELD 335 FOR ONE YEAR ON MAY 4 1994 THE NOTES BEGIN PAYING INTEREST QUARTERLY AT A RATE EQUIVALENT TO THE THREEMONTH LONDON INTERBANK OFFERED RATE THE NOTES WILL THEN BE RESET QUARTERLY AT THAT RATE UNTIL MATURITY THREEMONTH LIBOR IS CURRENTLY 31875 THE NONCALLABLE ISSUE IS RATED DOUBLEA3 BY MOODY'S AND DOUBLEA BY S&P THE NOTES WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS CHEMICAL BANKING CORP 150 MILLION OF NOTES DUE MAY 6 1996 PRICED TO FLOAT QUARTERLY AT A SPREAD OF 025 PERCENTAGE POINT ABOVE THE THREEMONTH LONDON INTERBANK OFFERED RATE THREEMONTH LIBOR IS CURRENTLY SET AT 31875 THE NOTES WHICH PAY INTEREST QUARTERLY WERE PRICED INITIALLY AT A DISCOUNT OF 9991 RATED BAA1 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS DUKE POWER CORP 100 MILLION OF FIRST MORTGAGE BONDS DUE MAY 1 2004 WON BY DEALERS LED BY MORGAN STANLEY & CO ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR FIVE YEARS THE BONDS WILL BE REOFFERED AS 6 1/4 S AT 97531 TO YIELD 6569 THE ISSUE WAS PRICED AT A SPREAD OF 058 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE MORGAN STANLEY'S BID RESULTED IN A 6609 NET INTEREST COST TO THE COMPANY THE BONDS ARE RATED DOUBLEA2 BY MOODY'S AND DOUBLEAMINUS BY S&P FEDERAL FARM CREDIT BANKS 100 MILLION OF MEDIUMTERM NOTES DUE MAY 6 1996 PRICED TO FLOAT DAILY AT A SPREAD OF 27 PERCENTAGE POINTS BELOW THE PRIME RATE ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WHICH PAYS INTEREST QUARTERLY WAS PRICED THROUGH MERRILL LYNCH & CO FPL GROUP CAPITAL INC 125 MILLION OF DEBENTURES DUE MAY 1 2013 PRICED AS 7 5/8 S AT 98131 TO YIELD 7811 ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR FIVE YEARS THE ISSUE WAS PRICED AT A SPREAD OF 095 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC FPL GROUP CAPITAL IS A SUBSIDIARY OF FPL GROUP INC NORTHERN TRUST CORP 100 MILLION OF SUBORDINATED BANK NOTES DUE MAY 1 2003 PRICED AS 6 1/2 S AT 99665 TO YIELD 6546 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 057 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE RATED SINGLEA2 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO CTL CREDIT INC INITIAL OFFERING OF 3 MILLION COMMON SHARES PRICED AT 11 EACH THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES MIDLANTIC CORP 5 MILLION COMMON SHARES OF MIDLANTIC CORP PRICED AT 1950 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO MOHAWK INDUSTRIES INC 2 MILLION COMMON SHARES AT 3050 APIECE THROUGH UNDERWRITERS INCLUDING FIRST BOSTON CORP KIDDER PEABODY & CO AND WHEAT FIRST BUTCHER & SINGER CAPITAL MARKETS OF THE TOTAL NUMBER OF SHARES 15 MILLION ARE BEING SOLD BY THE COMPANY AND 500000 ARE BEING SOLD BY CERTAIN SELLING STOCKHOLDERS ROYAL CARIBBEAN CRUISES LTD INITIAL OFFERING OF 10 MILLION COMMON SHARES PRICED AT 18 EACH THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC MISSISSIPPI HOSPITAL EQUIPMENT AND FACILITIES AUTHORITY 101 MILLION 1993 SERIES 1 REVENUE REFUNDING AND IMPROVEMENT BONDS PRICED BY A GOLDMAN SACHS & CO GROUP YIELDS RANGE FROM 37 IN 1995 TO 6 IN 2016 THE BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P SEATTLE 123 MILLION SEWER REFUNDING REVENUE BONDS APPARENTLY WON BY A MERRILL LYNCH & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 5789 YIELDS RANGE FROM 28 IN 1994 TO 585 IN 2015 AND 2016 THE BONDS ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P VIRGINIA EDUCATION LOAN AUTHORITY 185 MILLION OF SERIES B C D E F AND G REVENUE REFUNDING BONDS PRICED BY A SMITH BARNEY HARRIS UPHAM & CO GROUP OVERALL YIELDS RANGE FROM 25 FOR SERIES B BONDS DUE IN 1994 TO 62 FOR SERIES G BONDS DUE IN 2009 THE SERIES G BONDS ARE SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAX THE OFFERING INCLUDES THE FOLLOWING 758 MILLION SERIES B SENIOR SERIAL BONDS PRICED TO YIELD FROM 25 IN 1994 TO 5 IN 2000 212 MILLION SERIES C SENIOR SERIAL BONDS PRICED TO YIELD FROM 26 IN 1994 TO 51 IN 2000 535 MILLION SERIES D SENIOR SERIAL BONDSWHICH ARE SUBJECT TO THE ALTERNATIVE MINOMUM TAXPRICED TO YIELD FROM 52 IN 2000 TO 6 IN 2009 123 MILLION SERIES E SENIOR SERIAL BONDS WHICH ARE SUBJECT TO THE ALTERNATIVE MINIMUM TAX PRICED TO YIELD FROM 53 IN 2000 TO 59 IN 2005 112 MILLION SERIES F SUBORDINATED TERM BONDS PRICED TO YIELD 525 IN 2000 11 MILLION SERIES G SUBORDINATED TERM BONDSWHICH ARE SUBJECT TO THE ALTERNATIVE MINIMUM TAXPRICED TO YIELD 62 IN 2009 THE SERIES B C D AND E BONDS HAVE BEEN RATED TRIPLEA BY MOODY'S AND THE SERIES F AND G BONDS HAVE BEEN RATED SINGLEA BY MOODY'S WASHINGTON DC 3649 MILLION SERIES 1993A GENERAL OBLIGATION REFUNDING BONDS PRICED BY A LEHMAN BROTHERS GROUP YIELDS FOR REOFFERED BONDS RANGE FROM 35 IN 1994 TO 6 IN 2005 MOODY'S HAS RATED THE ISSUE BAA S&P HAS ASSIGNED A SINGLEAMINUS RATING AND FITCH INVESTORS SERVICE INC HAS ALSO ASSIGNED A SINGLEAMINUS RATING WEST JEFFERSON INDUSTRIAL DEVELOPMENT BOARD OF ALABAMA 97 MILLION POLLUTION CONTROL REVENUE REFUNDING BONDS APPARENTLY WON BY A GOLDMAN SACHS & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 6174 THE BONDS WHICH ARE 605S PRICED AT PAR ARE TO YIELD 605 ON MAY 1 2023 THEY ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 326 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES GOLD 1530 IS BACKED BY FREDDIE MAC GOLD 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 765 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2983 YEARS BAYERISCHE LANDESBANK GIROZENTRALE GERMANY 300 BILLION LIRE OF 10 3/4 EUROBONDS DUE MARCH 1 2003 AT ISSUE PRICE 101 3/4 VIA MONTE DEI PASCHI DI SIENA YIELD 1078 AT 99 3/4 BREAKEVEN PRICE FOR COMANAGING BANKS FEES 2 POINTS CITICORP US 200 MILLION OF SUBORDINATED COLLARED FLOATINGRATE EURONOTES DUE AUGUST 2003 VIA KIDDER PEABODY INTERNATIONAL REOFFERED AT 995 INTEREST FLOATS AT 1/8 POINT BELOW THREEMONTH LONDON INTERBANK OFFERED RATE FOR US DOLLARS SUBJECT TO MINIMUM 55 MAXIMUM 10 FEES 1/2 POINT CREDIT NATIONAL FRANCE 2 BILLION FRANCH FRANCS OF 7 1/4 EUROBONDS DUE MAY 14 2003 REOFFERED AT 9801 VIA PARIBAS LTD YIELD AT REOFFER PRICE 754 SPREAD 47 BASIS POINTS ABOVE FRENCH TREASURY BOND FEES 3/8 POINT CREDIT NATIONAL FRANCE 1 BILLION FRENCH FRANCS OF 7 3/8 EUROBONDS DUE APRIL 22 1996 AT REOFFER PRICE 10033 VIA LEAD UNDERWRITER PARIBAS LTD YIELD AT REOFFER PRICE 725 MARGIN 38 BASIS POINTS ABOVE FRENCH TREASURY NOTE BONDS WILL TRADE INTERCHANGEABLY 15 BILLION FRANCS OF IDENTICAL OUTSTANDING BONDS FEES 1/4 POINT EXPORTIMPORT BANK OF JAPAN JAPAN 300 MILLION OF 6 1/4 EUROBONDS DUE MAY 25 2005 AT REOFFER PRICE 98692 VIA MERRILL LYNCH INTERNATIONAL YIELD AT REOFFER PRICE 631 SPREAD 33 BASIS POINTS OVER COMPARABLE US TREASURY NOTE FEES 035 POINT FORTE PLC UK 90 MILLION OF 6 3/4 CONVERTIBLE EUROBONDS DUE MAY 26 2008 AT ISSUE PRICE PAR VIA UBS LTD CONVERTIBLE INTO FORTE ORDINARY SHARES AT ANY TIME FROM 40 DAYS AFTER OFFER CLOSED TO 10 DAYS BEFORE MATURITY AT 223 PENCE A SHARE PREMIUM 135 ABOVE FORTE'S CLOSING SHARE LONDON STOCK EXCHANGE PRICE ON MONDAY FEES 2 1/2 POINTS KURARAY CO JAPAN 300 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE MAY 13 1997 WITH EQUITYPURCHASE WARRANTS ATTACHED CARRYING A 3/4 COUPON AT PAR VIA CREDIT SUISSE EACH 50000FRANC NOTE CARRIES 50 WARRANTS EXERCISABLE FROM MAY 24 1993 TO MAY 9 1997 TO PURCHASE COMPANY STOCKS FINAL TERMS WILL BE FIXED MAY 6 FEES 1 5/8 POINTS OSAKA GAS CO JAPAN 250 MILLION OF 5 3/4 EUROBONDS DUE MAY 26 1998 AT ISSUE PRICE 101489 VIA GOLDMAN SACHS INTERNATIONAL REOFFERED AT 99889 TO YIELD 5776 ANNUAL SPREAD 57 BASIS POINTS OVER COMPARABLE US TREASURY NOTE FEES 1 7/8 POINTS SWEDISH NATIONAL HOUSING FINANCE CORP SWEDEN 150 MILLION SWISS FRANCS OF 5 PRIVATELY PLACED NOTES DUE JUNE 10 1999 PRICED AT 10175 VIA BANQUE PARIBAS SUISSE FEES 1 5/8 POINTS 9304280057 930428 BUSINESS BRIEF PACCAR INC FIRSTQUARTER PROFIT SURGED AS SALES OF TRUCKS INCREASED PACCAR INC CITING HIGHER TRUCK SALES AND IMPROVED LOAN AND LEASE PORTFOLIOS SAID NET INCOME NEARLY TRIPLED IN THE FIRST QUARTER THE COMMERCIAL TRUCK MAKER BASED IN BELLEVUE WASH SAID EARNINGS SOARED TO 274 MILLION OR 81 CENTS A SHARE FROM 108 MILLION OR 32 CENTS A SHARE A YEAR EARLIER REVENUE IN THE PERIOD ROSE 29 TO 7614 MILLION FROM 5887 MILLION A YEAR AGO PACCAR SAID US TRUCK ORDER BACKLOGS FURTHER STRENGTHENED IN THE QUARTER ON CONTINUED HIGH DEMAND FOR KENWORTH AND PETERBILT TRUCKS THE COMPANY SAID INTERNATIONAL TRUCK SALES ALSO CONTRIBUTED MORE TO NET IN THE QUARTER THAN IN THE YEAREARLIER PERIOD IN ITS FINANCIAL SERVICES SEGMENT PACCAR SAID HIGHER PORTFOLIO QUALITY HELPED REDUCE LOANLOSS PROVISIONS IN THE QUARTER WHILE AT THE SAME TIME LOAN AND LEASE PORTFOLIO GROWTH CONTRIBUTED TO HIGHER OVERALL PROFITABILITY 9304280056 930428 BUSINESS BRIEF COASTAL CORP FIRM POSTS 1STPERIOD PROFIT OIL REFINING BUSINESS CITED COASTAL CORP BOLSTERED BY IMPROVED RESULTS IN ITS OIL REFINING BUSINESS POSTED NET INCOME FOR THE FIRST QUARTER OF 25 MILLION OR 24 CENTS A SHARE COMPARED WITH A RESTATED LOSS OF 6 MILLION OR SIX CENTS A SHARE A YEAR EARLIER THE HOUSTON OIL AND NATURALGAS COMPANY SAID THAT COSTCUTTING MEASURES IN ITS REFINING OPERATIONS HELPED RESTORE PROFITABILITY COASTAL'S REFINERIES POSTED PRETAX EARNINGS OF 17 MILLION IN THE MOST RECENT QUARTER COMPARED WITH A LOSS OF 505 MILLION A YEAR EARLIER COASTAL'S PRETAX PROFIT FROM EXPLORATION AND PRODUCTION MORE THAN DOUBLED TO 103 MILLION MEANWHILE THE COMPANY SAID IT LOWERED CAPITAL SPENDING AND INVENTORIES PRODUCTION OF NATURAL GAS MORE THAN DOUBLED TO 2256 MILLION CUBIC FEET A DAY REVENUE ROSE 4 TO 265 BILLION FROM 254 BILLION THE COMPANY'S 1992 RESULTS HAVE BEEN RESTATED TO REFLECT ACCOUNTING CHANGES 9304280055 930428 BUSINESS BRIEF FRANKLIN ELECTRONIC PUBLISHERS INC FOURTHQUARTER NET SURGED NEW DIGITAL BOOKS ARE CITED FRANKLIN ELECTRONIC PUBLISHERS INC REPORTED ROBUST FISCAL FOURTHQUARTER EARNINGS AND HIGHER SALES BOOSTED BY THE ROLLOUT OF NEW DIGITAL BOOKS FOR THE MEDICAL PROFESSIONAL MARKET THE MAKER OF ELECTRONIC BOOKS SAID NET INCOME FOR THE QUARTER ENDED MARCH 31 WAS 1 MILLION OR 13 CENTS A SHARE COMPARED WITH 308000 OR FOUR CENTS SHARE A YEAR EARLIER SALES ROSE 12 TO 128 MILLION IN SPITE OF LINGERING MARKET WEAKNESS SALES OF OUR ELECTRONIC BOOKS THROUGH TRADITIONAL CONSUMER CHANNELS ARE HOLDING THEIR OWN MORTON E DAVID CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN MOUNT HOLLY NJ EARNINGS FOR FISCAL 1993 WERE 71 MILLION OR 94 CENTS A SHARE COMPARED WITH 31 MILLION OR 47 CENTS A SHARE IN 1992 SALES ROSE 21 TO 654 MILLION FROM 538 MILLION 9304280054 930428 OTC FOCUS TECHNOLOGY MEDICAL STOCKS BOOST INDEX SOUTHSIDE BANCSHARES SURGES ON NASDAQ BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STRONG BUYING IN TECHNOLOGY AND MEDICALRELATED STOCKS COMBINED WITH A SHARP JUMP IN TINY SOUTHSIDE BANCSHARES LIFTED THE OVERTHECOUNTER MARKET THE NASDAQ COMPOSITE INDEX JUMPED 665 POINTS OR 103 TO 65252 ADVANCING ISSUES OUTNUMBERED DECLINERS 1378 TO 1332 ON TOTAL VOLUME OF 2368 MILLION SHARES UP FROM MONDAY'S 2123 MILLION THE MARKET WAS POUNDED ON MONDAY AND SOME MONEY CAME BACK IN SAID ROBERT PADALA A SENIOR VICE PRESIDENT OF OTC TRADING AT DONALDSON LUFKIN & JENRETTE ACROSS THE BOARD STOCKS BOUNCED BACK SOUTHSIDE BANCSHARES SURGED 24 OR 36 TO 90 WHEN SHARES OF THE ST LOUIS BANK HOLDING COMPANY MADE THEIR DEBUT ON THE NASDAQ MARKET ONLY 11700 SHARES OF THE STOCK TRADED THE STOCK HAD BEEN TRADING ON THE ELECTRONIC OTC BULLETIN BOARD FOR AROUND 6266 A SHARE BEFORE IT OPENED ON THE NASDAQ MARKET IT HARDLY EVER TRADED ON THE BULLETIN BOARD SAID JANEL HUSTON AN OTC TRADER AT CHICAGO CORP ONE OF THE TWO MARKET MAKERS IN THE STOCK WHEN STOCKS COME OFF THE BULLETIN BOARD THEY CAN GET IN THE MIDDLE OF SOME CRAZY TRADING IT'S KIND OF A LUDICROUS SITUATION FOUNDED IN 1891 SOUTHSIDE IS A HOLDING COMPANY FOR FIVE BANKS IN THE REGION THE COMPANY FIRST CAME PUBLIC IN 1934 LAST YEAR THE COMPANY EARNED 623 A SHARE AND HAS A BOOK VALUE OF ABOUT 128 A SHARE WITH ONLY 259144 SHARES OUTSTANDING SAID JERARD GEEN THE COMPANY'S SENIOR VICE PRESIDENT WE PUT THE SHARES OUT ON THE NASDAQ MARKET BECAUSE WE WANTED TO ESTABLISH A BETTER VALUE FOR THE SHAREHOLDERS MR GEEN SAID IN THE NEXT COUPLE OF WEEKS THERE WILL PROBABLY BE WIDE FLUCTUATIONS IT SEEMS LIKE A LOT OF LOCAL PEOPLE HAVE BEEN BUYING THE STOCK MR GEEN SAID THERE IS ALSO AN INDIVIDUAL WHO HAS EXPRESSED INTEREST IN ACQUIRING THE COMPANY AND HAS BEEN BUYING STOCK FROM SOME SHAREHOLDERS IN THE RANGE OF 85 TO 90 A SHARE IT'S GOING TO BE DIFFICULT FOR HIM TO BUY A CONTROLLING INTEREST BECAUSE THERE ARE SO FEW SHARES THAT TRADE REGULARLY AND NO TENDER OFFERS HAVE BEEN FILED HE SAID WE HAVE NO DESIRE TO SELL GIVEN THE FACT THE HISTORY IS SO LONG ALMOST ALL TECHNOLOGY STOCKS POSTED GAINS MICROSOFT JUMPED 2 1/8 TO 82 1/2 APPLE COMPUTER ROSE 1 1/4 TO 50 1/4 AND ADOBE SYSTEMS POPPED UP 4 7/8 TO 50 1/8 INTEL CLIMBED 4 5/8 TO 92 REGAINING SOME OF ITS LOSSES FROM MONDAY'S 5 3/8POINT TUMBLE BUT ALTHOUGH MOST TECHNOLOGY STOCKS GAINED CIRRUS LOGIC PLUNGED 6 TO 14 1/2 LATE MONDAY AFTERNOON THE COMPANY REPORTED EARNINGS OF 10 CENTS A SHARE FOR ITS FISCAL FOURTH QUARTER ENDED MARCH 31 INCLUDING A CHARGE FOR MERGER COSTS A YEAR EARLIER IT POSTED NET OF 16 CENTS A SHARE RASTEROPS JUMPED 1 3/8 TO 6 3/8 RASTEROPS AND SCITEX SAID THEY SIGNED A PRELIMINARY AGREEMENT UNDER WHICH SCITEX WOULD INVEST 10 MILLION IN NEWLY ISSUED RASTEROPS COMMON SHARES AT 8 EACH AFTER THE INVESTMENT SCITEX WOULD OWN MORE THAN 13 OF THE SANTA CLARA CALIFBASED RASTEROPS RASTEROPS MANUFACTURES COLOR IMAGING PRODUCTS FOR PUBLISHING AND RELATED INDUSTRIES SCITEX FINISHED UCHANGED AT 40 1/8 BIOTECHNOLOGY AND HEALTH CARE STOCKS ROSE AS INVESTORS CONTINUED TO BUY SHARES IN THE BEATENDOWN SECTOR TRADERS SAID THIS GROUP MIGHT BE MORE APPEALING BECAUSE OF REPORTS THAT PRESIDENT CLINTON'S HEALTH CARE ADVISERS ARE THINKING INCREASINGLY ABOUT THE IDEA OF COSTCONTROL PACTS BETWEEN GOVERNMENT AND THE HEALTH INDUSTRY INSTEAD OF REGULATIONS ON HOW MUCH THE INDUSTRY CAN CHARGE BIOGEN CLIMBED 2 5/8 TO 33 1/4 AMGEN JUMPED 2 7/8 TO 41 US HEALTHCARE ROSE 4 3/8 TO 48 1/8 AND CHIRON LEAPED 4 1/2 TO 54 1/2 WESTERN PUBLISHING SLIPPED 2 5/8 TO 13 3/8 THE NEW YORK COMPANY SAID IT EARNED FOUR CENTS A SHARE FOR ITS FISCAL FOURTH QUARTER ENDED JAN 30 A YEAR EARLIER IT POSTED EARNINGS OF 14 CENTS A SHARE THE COMPANY SAID IT EXPECTS REDUCED SALES AND A PROBABLE OPERATING LOSS FOR THE FIRST QUARTER OF FISCAL 1994 WESTERN BLAMED CONSUMER CAUTION SEVERE WEATHER LOWER INCOME TAX RETURNS TO CONSUMERS AND RETAILERS' CONSERVATIVE INVENTORY POSITIONS FOR ITS EXPECTED WEAKER RESULTS IN THE FIRST QUARTER MICRODYNE SLID 5/8 TO 4 3/8 THE ALEXANDRIA VA COMPANY REPORTED EARNINGS OF ONE CENT A SHARE FOR ITS FISCAL SECOND QUARTER ENDED MARCH 31 DOWN FROM 19 CENTS A YEAR BEFORE THE COMPANY SAID THE MARKET FOR OUR PRODUCTS CONTINUES TO CHANGE IN AN UNPREDICTABLE WAY THAT WILL CONTINUE TO BUFFET SALES FOR THE FORESEEABLE FUTURE MICRODYNE MAKES COMPUTER DATA COMMUNICATIONS PRODUCTS 9304280053 930428 BUSINESS BRIEF PNC BANK CORP EMPLOYEES WILL GET BONUSES EQUAL TO 4 OF THEIR PAY PNC BANK CORP SAID IT WILL GIVE MOST OF ITS 17000 WORKERS BONUSES ON MAY 17 EQUAL TO 4 OF THEIR ANNUAL SALARIES THE BONUSES A FIRST FOR THE BANK HOLDING COMPANY BASED IN PITTSBURGH ARE A REWARD FOR EMPLOYEES' PART IN PNC'S THREEYEAR RESTRUCTURING PROGRAM WHICH HAS INCLUDED SOME JOB CUTS SAID A SPOKESMAN EMPLOYEES CAN TAKE THE BONUS EITHER IN PNC COMMON STOCK OR CASH THEY HAVE TO HAVE WORKED AT PNC FOR THE PAST 18 MONTHS TO BE ELIGIBLE SENIOR MANAGERS AREN'T ELIGIBLE TO RECEIVE THE BONUS PNC EXPECTS THE RESTRUCTURING WHICH IS ABOUT HALF COMPLETED TO CUT ANNUAL NONINTEREST EXPENSES BY 100 MILLION BY THE END OF 1994 IN 1992 PNC HAD 144 BILLION IN NONINTEREST EXPENSES SEPARATELY SHAREHOLDERS AT THE CONCERN'S ANNUAL MEETING AMENDED THE ARTICLES OF INCORPORATION TO INCREASE THE NUMBER OF COMMON SHARES AUTHORIZED TO BE ISSUED TO 450 MILLION FROM 250 MILLION 9304280052 930428 BUSINESS BRIEF HEALTH MANAGEMENT ASSOCIATES FIRM EXPECTS TO REPORT RISE OF 35 IN 2NDQUARTER PROFIT HEALTH MANAGEMENT ASSOCIATES EXPECTS TO REPORT THAT FISCAL SECONDQUARTER EARNINGS JUMPED ABOUT 35 TO 93 MILLION FROM 69 MILLION A YEAR EARLIER WILLIAM J SCHOEN CHAIRMAN AND PRESIDENT SAID THE NAPLES FLA COMPANY WHICH OPERATES 16 ACUTECARE AND PSYCHIATRIC HOSPITALS MAINLY IN THE SOUTH AND SOUTHWEST WILL REPORT PERSHARE NET OF ABOUT 48 CENTS FOR THE QUARTER ENDED MARCH 31 MR SCHOEN SAID COMPARED WITH 36 CENTS A YEAR EARLIER SECONDQUARTER REVENUE ROSE ABOUT 11 TO 805 MILLION FROM 724 MILLION FOR THE SIX MONTHS HEALTH MANAGEMENT EXPECTS TO REPORT THAT EARNINGS ROSE ABOUT 38 TO 144 MILLION FROM 104 MILLION MR SCHOEN SAID HE SAID PERSHARE NET ROSE TO ABOUT 75 CENTS FROM 56 CENTS A YEAR EARLIER AND THAT REVENUE INCREASED TO ABOUT 1537 MILLION FROM 1372 MILLION 9304280051 930428 INTUIT VISA TO DEVELOP ELECTRONIC SERVICES FOR HOME BANKING A WALL STREET JOURNAL NEWS ROUNDUP INTUIT INC AND VISA INTERNATIONAL HAVE TEAMED UP TO DELIVER COMPUTERIZED FINANCIAL INFORMATION TO HOMES AND BUSINESSES IN AN EFFORT TO CREATE A MARKET FOR ELECTRONIC HOME BANKING UNDER TERMS THAT WERE NOT DISCLOSED INTUIT AND VISA WILL WORK TO DEVELOP ELECTRONIC HOMEBANKING SERVICES AND MAKE THEM AVAILABLE TO VISA'S 18000 MEMBER FINANCIAL INSTITUTIONS WORLDWIDE INTUIT A SOFTWARE CONCERN AND THE SAN MATEO CALIFBASED VISA SAID THEY WILL CREATE A SYSTEM BY WHICH CONSUMERS CAN USE INTUIT'S SOFTWARE IN THEIR PERSONAL COMPUTERS TO AUTOMATICALLY TAP INTO A BANKS' FILES OVER PHONE LINES AND TRANSFER RECORDS OF SUCH THINGS AS CREDITCARD EXPENDITURES AND AUTOMATICTELLER WITHDRAWALS TO THE CUSTOMER'S PC THE PC'S SOFTWARE WOULD THEN USE THE RECORDS FOR TASKS SUCH AS BALANCING ACCOUNTS THE PAIR WOULD OFFER CUSTOMERS IN ESSENCE A FORM OF ELECTRONIC HOMEBANKING SOMETHING THAT SOME BANKS AND COMPUTERSERVICE COMPANIES HAVE TRIED TO DO FOR YEARS BUT FOR WHICH THEY HAVE FOUND LITTLE INTEREST MENLO PARK CALIFBASED INTUIT IS SEEKING TO BUILD ON THE SUCCESS OF ITS HOTSELLING QUICKEN SOFTWARE A PROGRAM THAT ALLOWS USERS TO PRINT CHECKS KEEP COMPUTER RECORDS OF BANK ACCOUNTS AND PAY BILLS THROUGH MODEMS OVER PHONE LINES BUT QUICKEN ONLY GIVES USERS ACCESS TO THE FINANCIAL INFORMATION THEY TYPE INTO THEIR COMPUTERS WITH THE NEW SERVICE CONSUMERS COULD BALANCE THEIR CHECKBOOKS AUTOMATICALLY AND GAIN IMMEDIATE ACCESS TO DAILY CREDITCARD EXPENSES INTUIT AND VISA WOULDN'T SAY WHEN THE SERVICE WOULD BE AVAILABLE 9304280050 930428 BUSINESS BRIEF ALEXANDER & ALEXANDER SERVICES INC INSURANCE BROKERAGE FIRM SAYS 1STPERIOD NET FELL 32 ALEXANDER & ALEXANDER SERVICES INC POSTED A 32 DROP IN FIRSTQUARTER NET INCOME COMPARED WITH YEAREARLIER EARNINGS THAT INCLUDED A ONETIME GAIN THE INSURANCE BROKERAGE FIRM HAD NET INCOME OF 142 MILLION OR 34 CENTS A SHARE COMPARED WITH 208 MILLION OR 51 CENTS A SHARE FOR THE FIRST QUARTER LAST YEAR THE RECENT QUARTER INCLUDED A GAIN OF 33 MILLION FOR A CHANGE IN INCOMETAX ACCOUNTING THE YEAREARLIER QUARTER INCLUDED A GAIN OF 261 MILLION ON THE SALE OF TWO NONCORE BUSINESSES OPERATING PROFIT ROSE 56 TO 217 MILLION FROM 139 MILLION ON THE STRENGTH OF SPECIALTY AND REINSURANCE BROKERAGE AND IN ITS HUMAN RESOURCES CONSULTING BUSINESS RETAIL INSURANCE BROKERAGE OPERATIONS WERE FLAT HOWEVER REVENUE INCHED UP TO 3228 MILLION FROM 3212 MILLION THE COMPANY'S STOCK ROSE 375 CENTS TO 25 IN LATE NEW YORK STOCK EXCHANGE TRADING 9304280049 930428 INTERNATIONAL BRIEF HOECHST AG GROUP EARNINGS DECLINE 28 CEO ADDRESSES SAFETY ISSUE HOECHST AG ONE OF GERMANY'S THREE CHEMICAL GIANTS REPORTED THAT GROUP PRETAX PROFIT PLUNGED 28 IN THE THE FIRST THREE MONTHS OF 1993 FROM A YEAR EARLIER FAR OUTSTRIPPING THE 49 DROP IN GROUP SALES IN A REPORT TO SHAREHOLDERS AT THE ANNUAL MEETING THE COMPANY DESCRIBED CUSTOMER SENTIMENT AS RATHER PRESSURED STILL THE RESULT WAS SLIGHTLY BETTER THAN MARKET FORECASTS PRETAX PROFIT TOTALED 436 MILLION MARKS 2783 MILLION DOWN FROM 605 MILLION MARKS SALES FELL TO 109 BILLION MARKS 696 BILLION FROM 115 BILLION MARKS AT THE SHAREHOLDERS MEETING A MAIN TOPIC WAS THE RECENT STRING OF ENVIRONMENTAL ACCIDENTS AT HOECHST PLANTS IN GERMANY CHIEF EXECUTIVE WOLFGANG HILGER TOLD STOCKHOLDERS THE ACCIDENTS SET BACK HOECHST AFTER YEARS OF SUCCESSFUL WORK ON SAFETY AND THE PROTECTION OF THE ENVIRONMENT AND DAMAGED CONFIDENCE IN THE CHEMICAL INDUSTRY 9304280048 930428 BUSINESS BRIEF COCACOLA ENTERPRISES INC LOSS NARROWED IN 1ST PERIOD HIGHER INTEREST COSTS HURT COCACOLA ENTERPRISES INC ATLANTA SAID ITS FIRSTQUARTER NET LOSS NARROWED TO 5 MILLION FROM 146 MILLION BUT THE YEAREARLIER PERIOD HAD A BIG CHARGE FOR POSTRETIREMENT ACCOUNTING COCACOLA ENTERPRISES A BIG COKE BOTTLER SAID ITS CASE VOLUME AND PRICING ROSE BUT HIGHER INTEREST EXPENSES HELPED PRODUCE THE NET LOSS FOR THE LATEST QUARTER WHICH AMOUNTED TO FOUR CENTS A SHARE THE YEARBEFORE NET LOSS WHICH WAS AFTER A 148 MILLION CHARGE FOR THE ACCOUNTING CHANGE AMOUNTED TO 114 A SHARE THE LATEST LOSS WAS ABOUT IN LINE WITH ANALYSTS' ESTIMATES ALTHOUGH SOME HAD BEEN LOOKING FOR AT LEAST A BREAKEVEN QUARTER REVENUE ROSE 9 TO 121 BILLION FROM 111 BILLION COCACOLA ENTERPRISES IS 44OWNED BY COCACOLA CO THE ATLANTABASED SOFTDRINK COMPANY 9304280047 930428 INTERNATIONAL ITALIAN SENATE PANEL BACKS WAIVING IMMUNITY FOR ANDREOTTI IN MAFIA PROBE BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN IN A MAJOR REBUFF TO THE LEADER MOST EMBLEMATIC OF ITALY'S OLD POLITICAL ORDER A SENATE COMMITTEE RECOMMENDED WAIVING PARLIAMENTARY IMMUNITY FOR SEVENTIME PREMIER GIULIO ANDREOTTI SO HE CAN BE INVESTIGATED FOR MAFIA ASSOCIATION I THINK THAT ONCE SUCH A SERIOUS SUSPICION IS RAISED ABOUT A POLITICIAN LIKE ANDREOTTI EVERY CITIZEN HAS THE RIGHT TO A CONTINUATION OF THE INVESTIGATIONS SAID GIOVANNI PELLEGRINO PRESIDENT OF THE SENATE COMMITTEE INVESTIGATING THE CASE AS A CHRISTIAN DEMOCRAT SENATOR FOR LIFE MR ANDREOTTI IS PROTECTED FROM PROSECUTION BY PARLIAMENTARY IMMUNITY THE COMMITTEE'S RECOMMENDATION NOW PASSES TO THE SENATE WHICH WILL HAVE TO VOTE ON IT BEFORE IMMUNITY IS LIFTED AND INVESTIGATORS CAN CONTINUE THEIR PROBE BUT EVEN SUCH A SENATE COMMITTEE RECOMMENDATION AGAINST THE FORMER PRIME MINISTER WOULD HAVE BEEN UNTHINKABLE A YEAR AGO AS ITALY'S OLD POLITICAL REGIME CRUMBLES THE 74YEAROLD MR ANDREOTTI IS ITS MOST POWERFUL SYMBOL HAVING SERVED IN 33 GOVERNMENTS SPANNING NEARLY 50 YEARS MAFIA TURNCOATS ALLEGE THAT MR ANDREOTTI HAD CONTINUOUS CONTACT WITH LEADING MAFIA MEMBERS IN THE 1970S AND 1980S REPRESENTING THEIR INTERESTS IN ROME IN RETURN FOR GUARANTEED VOTES FOR THE CHRISTIAN DEMOCRAT PARTY IN SICILY INFORMANTS CLAIM HE HELPED LIGHTEN SENTENCES OR ENSURE RELEASE FOR CONVICTED BOSSES HE IS ALSO ACCUSED OF HELPING ORCHESTRATE THE MURDERS OF LEADING ANTIMAFIA POLICE CHIEF CARLO ALBERTO DALLA CHIESA AND RIGHTWING JOURNALIST MINO PECORELLI ALLEGEDLY BECAUSE THEY KNEW DETAILS OF THE CIRCUMSTANCES SURROUNDING THE DEATH OF FORMER PRIME MINISTER ALDO MORO BY RED BRIGADE TERRORISTS IN 1978 A 23MEMBER COMMITTEE OF MR ANDREOTTI'S PEERS DECIDED THAT EVIDENCE GATHERED AGAINST HIM BY INVESTIGATING MAGISTRATES IN PALERMO SICILY CONSTITUTED ENOUGH GROUNDS TO WARRANT FURTHER INVESTIGATION MR ANDREOTTI WHO RESIGNED AS PREMIER LAST APRIL HAS BEEN CALLED TO TESTIFY BEFORE PARLIAMENTARY COMMISSIONS 27 TIMES FOR VARIOUS EPISODES IN THE PAST BUT THIS IS THE FIRST TIME SUCH A COMMITTEE RECOMMENDED WAIVING IMMUNITY IT IS ALSO THE FIRST TIME SUCH A RECOMMENDATION HAS BEEN MADE FOR A FORMER PRIME MINISTER THE COMMITTEE VOTED 11 IN FAVOR AND 1 AGAINST WITH 11 ABSTENTIONS AMONG THE ABSTAINING SENATORS WERE SEVERAL MEMBERS OF MR ANDREOTTI'S CHRISTIAN DEMOCRAT PARTY AND SEVERAL SOCIALISTS WE CONTENDED THAT ALL THE ACCUSATIONS WERE UNFOUNDED AND IF IT GOES TO TRIAL ANDREOTTI WILL FULLY DEMONSTRATE HIS INNOCENCE SAID CHRISTIAN DEMOCRAT SEN GIOVANNI SILVIO COCCO IN A STATEMENT MR ANDREOTTI CALLED THE CHARGES INCREDIBLE AND SAID HE IS NOT AFRAID OF THE TRUTH AND WILL FACE FIRMLY AND WITH DECISION EVERY PROCEDURE FOR UNMASKING THIS INCREDIBLE PLOT HE HAS CLAIMED THAT PALERMO MAGISTRATES ARE CORRUPT AND INTIMIDATION TACTICS WERE USED TO INFLUENCE THE SENATE COMMITTEE IT'S NOT POSSIBLE TO TRAMPLE A LIFE NOT ONLY PERSONAL BUT DEDICATED TO THE SERVICE OF THE NATION AND TO A STRONG BATTLE AGAINST THE MAFIA FOR POLITICAL MANEUVERS WHICH OUGHT TO TAKE OTHER PATHS HE SAID 9304280046 930428 MARKETING BRIEF SOUTHERN NEW ENGLAND TELECOM VIDEOONDEMAND TRIAL SET FOR 500 HOMES LATER IN YEAR SOUTHERN NEW ENGLAND TELECOMMUNICATIONS CORP NEW HAVEN CONN SAID IT PLANS TO CONDUCT A TRIAL OF VIDEOONDEMAND IN ABOUT 500 HOMES LATER THIS YEAR THE 2 MILLION PROGRAM UNLIKE OTHER SIMILAR TRIALS WILL INVOLVE A HYBRID COAXIAL AND FIBEROPTIC CABLE RATHER THAN FIBEROPTIC ALONE SOUTHERN NEW ENGLAND SAID THE HYBRID CABLE WOULD BE LESS EXPENSIVE TO INSTALL AND WOULD PROVIDE A WIDER BANDWIDTH FOR PROGRAMMING PARTICIPANTS IN THE PROGRAM WHO MUST LIVE IN THE WEST HARTFORD CONN AREA WILL HAVE ACCESS TO THE PROGRAMS SUCH AS THE NIGHTLY NEWS OR A FILM AT ANY TIME USERS OF THE SYSTEM WOULD USE A REMOTE CONTROL DEVICE TO VIEW A MENU ON THEIR TELEVISION SCREENS AFTER MAKING A SELECTION A CONVERTER ON THE TELEVISION WILL ORDER UP A PROGRAM FROM A VIDEOSERVER AT A CENTRAL LOCATION 9304280045 930428 BUSINESS BRIEF TAMBRANDS INC NET ROSE 14 IN 1ST PERIOD RELECTING LOWER EXPENSES TAMBRANDS INC SAID FIRSTQUARTER NET INCOME ROSE 14 REFLECTING LOWER MARKETING SELLING AND DISTRIBUTION EXPENSES THE WHITE PLAINS NY MAKER OF PERSONALCARE PRODUCTS INCLUDING TAMPAX TAMPONS REPORTED NET INCOME OF 322 MILLION OR 82 CENTS A SHARE UP FROM 283 MILLION OR 70 CENTS A SHARE A YEAR EARLIER EARNINGS IN THE 1992 PERIOD WERE RESTATED TO REFLECT THE ADOPTION OF A NEW ACCOUNTING RULE FOR RETIREE HEALTH BENEFITS THE EFFECT OF THE RULE WAS A CHARGE OF 1 MILLION OR THREE CENTS A SHARE MARKETING SELLING AND DISTRIBUTION EXPENSES FELL 25 TO 404 MILLION FROM 538 MILLION PARTLY AS A RESULT OF A PLANNED REDUCTION IN US ADVERTISING IN PREPARATION FOR A NEW ADVERTISING CAMPAIGN THAT WILL BEGIN IN THE SECOND QUARTER SALES FELL 117 TO 1543 MILLION FROM 1749 MILLION DUE TO THE DIVESTITURE OF TAMBRANDS' MAXITHINS SANITARY PAD BUSINESS IN 1992 AMONG OTHER THINGS THE BOARD AUTHORIZED THE REPURCHASE OF UP TO 1950000 COMMON SHARES REPRESENTING ABOUT 5 OF THE SHARES OUTSTANDING 9304280044 930428 BUSINESS BRIEF FLEET FINANCIAL GROUP INC GEORGIA COURT ORDERS UNIT TO POSTPONE FORECLOSURES A FLEET FINANCIAL GROUP INC MORTGAGE SUBSIDIARY WAS ORDERED BY A JUDGE IN GEORGIA TO POSTPONE FORECLOSING ON HOMES IN THAT STATE FOR SIX MONTHS PENDING THE OUTCOME OF SUITS ALLEGING THAT THE BANK ENGAGED IN ILLEGAL LENDING PRACTICES IN ISSUING THE INJUNCTION JUDGE MARY E STALEY OF THE SUPERIOR COURT OF COBB COUNTY SAID THAT AT LEAST A FEW OF THE HOMEOWNERS TARGETED FOR FORECLOSURES MAY HAVE CLAIMS AGAINST THE FLEET UNIT AS A RESULT OF SEVERAL LAWSUITS BROUGHT AGAINST THE COMPANY FLEET'S SECONDMORTGAGE LENDING UNIT HAS BEEN ACCUSED OF CHARGING EXCESSIVELY HIGH INTEREST RATES ON MORTGAGES TO LOWINCOME MINORITY HOMEOWNERS A DECISION ON THE FIRST OF THESE LAWSUITS IS EXPECTED WITHIN THE NEXT FEW WEEKS A SPOKESMAN FOR FLEET BASED IN PROVIDENCE RI SAID THE GEORGIA COURT'S DECISION WAS NOT UNEXPECTED FLEET WHICH DENIES THE ALLEGATIONS MAINTAINS THAT ITS ANNUAL MORTGAGE RATES WEREN'T HIGHER THAN PREVAILING INDUSTRY STANDARDS FOR WHAT IT CALLED HIGHRISK LOANS TO PEOPLE WITH POOR CREDIT RATINGS THE SPOKESMAN SAID ABOUT 70 OF THE FLEET UNIT'S LOANS IN GEORGIA FACE FORECLOSURE ACTION 9304280043 930428 POLITICS & POLICY PENTAGON ADVICE GIVES COLD COMFORT TO CLINTON BOSNIAN AIR STRIKES ARE RISKY ALTERNATIVES POOR BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US MILITARY OPPOSES THE RISING SENTIMENT FOR AIR STRIKES AGAINST THE SERBIAN MILITARY BECAUSE IT FEARS THEY WON'T STOP SERBIAN AGGRESSION AND THEN COULD LEAVE THE US WITH A PAINFUL CHOICE THROW IN THE TOWEL OR COMMIT GROUND TROOPS AIR STRIKES AGAINST SERBIAN ARTILLERY HAVE BECOME THE MOST TALKEDABOUT MILITARY OPTION IN THE FORMER YUGOSLAVIA THOUGH HARDLY THE ONLY ONE BUT THE JOINT CHIEFS OF STAFF HAVE TOLD PRESIDENT CLINTON THAT THEY DON'T SEE ANY GOOD MILITARY OPTIONS SAY PEOPLE WHO HAVE BEEN BRIEFED BY THE JOINT CHIEFS' WAR PLANNERS OF ALL THE AVAILABLE OPTIONS THE MILITARY LEADERS HAVE TOLD THE WHITE HOUSE THE LEAST TROUBLING WOULD BE PURSUING A TWOSTEP PROCESS OF LIFTING THE INTERNATIONAL ARMS EMBARGO ON THE BOSNIAN MUSLIMS WHO ARE BATTLING THE SERBIAN MILITARY AND THEN PERHAPS LATER ARMING THEM BUT THAT MOVE IS OPPOSED BY EUROPEAN ALLIES AND THE CHIEFS NOTED THAT EVEN THAT OPTION COULD HAVE DANGEROUS CONSEQUENCES THE CHIEFS HAVE PRESENTED THEIR VIEWS TO THE WHITE HOUSE IN WHAT AMOUNTS TO A RECIPE BOOK ON HOW YOU BUILD THIS THING ACCORDING TO ONE PERSON FAMILIAR WITH THEIR THINKING BUT THE BOTTOM LINE WAS THE MILITARY PAYOFFS ARE VERY SMALL CONSULTATIONS ON THE FIGHTING IN BOSNIA INTENSIFIED YESTERDAY AS NORTH ATLANTIC TREATY ORGANIZATION CHIEFS OF STAFF IN BRUSSELS WARNED AGAINST ACTING MILITARILY WITHOUT A CLEAR OBJECTIVE AND PRESIDENT CLINTON BROUGHT THE HOUSE AND SENATE BIPARTISAN LEADERSHIP TOGETHER FOR A NEARLY THREEHOUR MEETING THE PRESIDENT APPEARS UNCERTAIN STILL OF THE MERITS OF AIR STRIKES ALONE MR CLINTON ASKED LAWMAKERS TO CONSIDER WHETHER INTERVENTION IF SUCCESSFUL WOULD DISCOURAGE ETHNIC CONFLICTS ELSEWHERE IN THE WORLD AND IF UNSUCCESSFUL WHAT COST WOULD THERE BE TO US INTERESTS VICE PRESIDENT AL GORE IS SEEN AS ADVOCATING A MORE INTERVENTIONIST APPROACH AND MR CLINTON DESCRIBED THE VICE PRESIDENT AS PRESSING HIM ALMOST DAILY ON THE BOSNIA QUESTION THE ADMINISTRATION HAS SIGNALED AN OPENNESS TO CONGRESS'S INVOKING THE WAR POWERS ACT IF MILITARY ACTION IS ORDERED SEN JOSEPH BIDEN D DEL BROUGHT A DRAFT RESOLUTION AUTHORIZING MILITARY ACTION BUT THERE REMAIN SERIOUS RESERVATIONS AMONG LEADING HOUSE DEMOCRATS AND NO CLEAR CONSENSUS HAS EMERGED I GIVE HIM VERY HIGH MARKS VIRGINIA SEN JOHN WARNER THE RANKING REPUBLICAN ON THE SENATE INTELLIGENCE COMMITTEE SAID OF MR CLINTON'S PERFORMANCE THE MEETING TODAY WILL BEGIN THE REAL DEBATE IN CONGRESS THESE ARE THE MILITARY OPTIONS THE PENTAGON HAS OUTLINED THE OPERATIONAL AIR STRIKE THE COMMONLY DISCUSSED OPTION OF HITTING ARTILLERY EMPLACEMENTS IS THE ONE MOST FEARED BY THE MILITARY THE ADVANTAGE IS THAT IT WOULD ADDRESS THE PROBLEM DIRECTLY SERB FORCES HAVE MADE ARTILLERY THEIR WEAPON OF CHOICE SHELLING URBAN POPULATIONS FROM AFAR BUT THAT SORT OF TALK GIVES THE WILLIES TO EXPERIENCED PILOTS WHO SAY GOING AFTER ARTILLERY WOULD BE FAR MORE DIFFICULT THAN MOST PEOPLE REALIZE ARTILLERY TENDS TO BE BURIED WITH ONLY THE BARREL STICKING OUT LIKE A TREE BRANCH SAID ROBERT GASKIN A FORMER FIGHTER PILOT IN VIETNAM WHO NOW STUDIES DEFENSE POLICY AT BUSINESS EXECUTIVES FOR NATIONAL SECURITY A WASHINGTON RESEARCH ORGANIZATION IT'S ONE OF THE HARDEST MISSIONS YOU CAN HAVE BOMBING FROM HIGH ALTITUDES RISKS BEING INEFFECTIVE OR WORSE HAVING PILOTS DUCK UNDER THE BALKAN CLOUD COVER AND SPEND TIME ZEROING IN ON TARGETS WOULD LIKELY RESULT IN MANY US PILOTS BEING KILLED AND TAKEN PRISONER OF WAR CRITICS ARGUE THE US THEN WOULD EFFECTIVELY BE AT WAR HAVING INVESTED THOSE LIVES IN THE CONFLICT IT WOULD BE ENORMOUSLY DIFFICULT FOR THE US TO SIMPLY WITHDRAW THE MAJOR LOSS OF AIRCRAFT IN VIETNAM WAS TO ANTIAIRCRAFT FIRE ADM DAVID JEREMIAH VICE CHAIRMAN OF THE JOINT CHIEFS TOLD REPORTERS IF YOU'RE GOING TO TRY TO GET IN UNDER THE WEATHER AND ON TARGETS YOU WILL GET INTO ANTIAIRCRAFT ARTILLERY YOU WILL TAKE CASUALTIES EVEN IF SUCH STRIKES WERE SUCCESSFUL AT THE OUTSET THEY COULD PROMPT THE SERBS TO DISPERSE THEIR ARTILLERY AND SHIFT TO ATTACKING SMALL TOWNS AND REFUGEE COLUMNS WHAT'S MORE IF THE STRIKES ARE CARRIED OUT THEY INEVITABLY WOULD KILL BYSTANDERS THIS CLEARLY IS A DIFFERENT SCENARIO THAN THE PERSIAN GULF WAR ADM JEREMIAH SAID THE MESSAGE AIR STRIKE THE MILITARY IS SOMEWHAT MORE COMFORTABLE WITH THIS SORT OF LIMITED LOWRISK STRIKE THE IDEA WOULD BE TO SEND THE SERBS A MESSAGE BY HITTING HIGHPROFILE TARGETS SUCH AS AMMUNITION DUMPS BRIDGES ELECTRICITY GRIDS OR OIL REFINERIES EITHER IN SERBIAN AREAS OF BOSNIA OR IN SERBIA PROPER THE ADVANTAGE IS THAT THE CHANCES OF LOSING PILOTS OR INFLICTING COLLATERAL DAMAGE ON CIVILIANS ARE LOWER THE QUESTION IS WHAT WOULD BE ACCOMPLISHED IN IRAQ THERE WERE THINGS YOU COULD HIT AND HAVE EXTRAORDINARY CONFIDENCE THAT IT WOULD HAVE AN EFFECT ACROSS THE WHOLE COUNTRY SAID ONE AIR FORCE TARGETING EXPERT BUT IN THE FORMER YUGOSLAVIA IT ISN'T CLEAR WHETHER PUNISHING SERB LEADERS IN SERBIA PROPER ACTUALLY WOULD AFFECT THE BEHAVIOR OF THEIR SERBIAN PROTEGES ON THE GROUND IN BOSNIA HITTING BRIDGES IN BOSNIA WOULD CERTAINLY BE EASIER AND WOULD SEND A MESSAGE BUT PERHAPS TO THE WRONG RECIPIENT PRECISION BOMBING COULD CUT SERBIAN SUPPLY LINES BUT SERBS WOULD QUICKLY FIND ALTERNATIVES ON BACKWOODS PATHS MEANWHILE HEAVIER RELIEF TRUCKS THAT CARRY HUMANITARIAN SUPPLIES MIGHT BE CUT OFF LIFTING THE ARMS EMBARGO FEELING FORCED TO MAKE A CHOICE THIS IS THE OPTION THE JOINT CHIEFS ARE PUSHING THE JOINT CHIEFS HAVE BECOME THE ADVOCATE OF ARMING SO THEY WON'T HAVE TO DO ANYTHING SAYS ZALMAY KHALILZAD A FORMER PENTAGON POLICY PLANNER WHO WAS THE BUSH ADMINISTRATION'S LEADING ADVOCATE OF AIDING THE BOSNIANS HE PREDICTS THAT BECAUSE OF THE JOINT CHIEFS' OPPOSITION TO AN OPERATIONAL STRIKE PRESIDENT CLINTON ULTIMATELY WILL CHOOSE TO PURSUE A MIX OF THE MESSAGESTRIKE OPTION AND LIFTING THE EMBARGO NOT THAT THE CHIEFS LIKE THIS OPTION LIKE AMERICA'S ALLIES THEY ARGUE THAT AT THE END OF THE DAY POURING MORE ARMS INTO THE REGION SIMPLY WILL PROVOKE SERBIAN ESCALATION AND SO RAISE THE LEVEL OF VIOLENCE YET IN HIS RECENT ROUNDS OF TALKS WITH THE ALLIES ABOUT BOSNIA SPECIAL US ENVOY REGINALD BARTHOLOMEW IS SAID TO HAVE ARGUED THAT AN END TO THE ARMS EMBARGO AT LEAST WILL INCREASE THE RIGHT KIND OF VIOLENCE THAT IS A MUSLIM DEFENSE AGAINST SERB AGGRESSION MR BARTHOLOMEW IS SAID TO BE DISCUSSING A TWOSTEP APPROACH TO THIS OPTION FIRST THE EMBARGO WOULD BE LIFTED THEN IF THAT DIDN'T HAVE THE DESIRED EFFECT THE WEST MIGHT ACTUALLY SHIP ARMS TO THE BOSNIANS AS WELL AS TRAIN THEM AND PROVIDE TACTICAL INTELLIGENCE BUT THAT SECOND STEP RAISES NEW WORRIES IF THE ARMS ARE FLOWN IN US AIRCRAFT WOULD AGAIN BE TARGETS AND IF THE ARMS ARE SHIPPED IN ACROSS CROATIA IT ISN'T CLEAR HOW MANY WOULD ACTUALLY REACH THE BOSNIANS AND HOW MANY MIGHT BE USED AGAINST THEM BY THE CROATS INSERTING GROUND FORCES NO ONE IS ACTUALLY ADVOCATING THIS INTERVENING TO IMPOSE A PEACE WOULD REQUIRE INSERTION OF TENS OF THOUSANDS OF TROOPS ONE CONGRESSIONAL STUDY REPORTS A NATO ESTIMATE OF ABOUT 300000 TROOPS FOR AN UNCERTAIN DURATION IT WOULD LEAD TO FAR HIGHER US CASUALTIES THAN ANY OF THE OTHER OPTIONS THE CHIEFS ALSO HAVE ARGUED AGAINST ESTABLISHING SAFE HAVENS FOR BOSNIAN MUSLIMS AMONG OTHER THINGS THAT WOULD REQUIRE STILLING SERB ARTILLERY WHICH LEADS BACK TO CONSIDERATION OF AIR STRIKES THE MILITARY'S OVERWHELMING CONCERN IN ALL THESE OPTIONS IS THE LACK OF A CLEARLY DEFINED OBJECTIVE ASKED YESTERDAY IF BOSNIA BROUGHT VIETNAM TO MIND ADM JEREMIAH SAID I THINK BEIRUT IS A BETTER ANALOGY 9304280042 930428 WHILE COSTCUTTING BOOSTED P&G'S NET IN FISCAL THIRD PERIOD SALES SLID 2 BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL CINCINNATI PROCTER & GAMBLE CO HELPED BY COSTCUTTING MEASURES POSTED SLIGHTLY BETTERTHANEXPECTED EARNINGS OF 516 MILLION OR 72 CENTS A SHARE IN THE FISCAL THIRD QUARTER STILL HURT BY SLOW CONSUMER SPENDING AND PRIVATELABEL COMPETITION P&G'S SALES SLID 2 TO 735 BILLION FROM A YEAR AGO EXCLUDING THE RECENT DIVESTITURE OF ITS PULP AND JUICE UNITS AND THE NEGATIVE EFFECT OF FOREIGN CURRENCY MOVEMENTS P&G SAID SALES IN THE QUARTER WERE UP 4 ANALYSTS WHO HAD FORECAST AN AVERAGE OF 69 CENTS A SHARE IN EARNINGS FOR THE QUARTER ENDED MARCH 31 EXPRESSED DISAPPOINTMENT WITH THE SALES RESULTS I THOUGHT SALES WOULD BE UP 6 OR 7 EXCLUDING THOSE DIVESTITURES SAID BONITA AUSTIN AN ANALYST WITH SHEARSON LEHMAN BROTHERS WHO NEVERTHELESS HAS A BUY RATING ON P&G STOCK BECAUSE THE COMPANY IS DOING WELL INTERNATIONALLY SAID LYNNE R HYMAN ANALYST WITH FIRST BOSTON WHO HAS A HOLD ON P&G COMMON WE'RE NOT SEEING ANY IMPACT OF AN ECONOMIC RECOVERY OR A CONSUMERSPENDING RECOVERY IN THESE NUMBERS IT'S NOT LIMITED TO PROCTER IT'S TRUE IN THE CATEGORIES IN WHICH THEY COMPETE ANALYSTS ALSO NOTED THAT 6 INTERNATIONAL VOLUME GROWTH IN THE PERIOD WAS SLOWER THAN PREVIOUS QUARTERS THE INTERNATIONAL NUMBERS HAD BEEN IN THE HIGH SINGLE DIGITS IN THE LAST THREE QUARTERS A YEAR AGO THEY WERE GROWING IN THE LOW DOUBLE DIGITS MS HYMAN SAID P&G GETS ABOUT HALF OF ITS 2936 BILLION IN ANNUAL SALES OUTSIDE THE US IN THE YEARAGO QUARTER P&G POSTED NET INCOME OF 474 MILLION OR 67 CENTS A SHARE REFLECTING A 50 MILLION AFTERTAX GAIN ON ASSET SALES SALES IN THAT PERIOD WERE 748 BILLION P&G STOCK ROSE SLIGHTLY YESTERDAY IN NEW YORK STOCK EXCHANGE TRADING THE STOCK WAS QUOTED AT 48875 UP 875 CENTS ESTIMATE SOME ANALYSTS RAISED THEIR EARNINGS ESTIMATES FOR FISCAL 1993 JOSEPH KOZLOFF OF SMITH BARNEY FOR ONE BOOSTED HIS YEAREND FORECAST TO 292 A SHARE FROM 290 P&G'S RESULTS REFLECT SIZABLE COST CUTTING THE CINCINNATI CONSUMER PRODUCTS COMPANY REDUCED EXPENSES ASSOCIATED WITH DELIVERING PRODUCTS TO MARKET PROMOTIONS SUCH AS COUPONING AND RETAILERS' ALLOWANCES AND ADMINISTRATIVE OVERHEAD ANALYSTS EXPECT P&G TO PARE COSTS FURTHER NEXT YEAR STILL P&G INCREASED ADVERTISING SPENDING ABOUT 3 IN THE QUARTER TO PROTECT ITS BIG BRANDS SOME OF WHICH WERE PLAGUED BY GROWING PRIVATELABEL COMPETITION SOMETIMES WE GET THE QUESTION DIDN'T YOU REDUCE COSTS BY CUTTING CONSUMER ADVERTISING THE ANSWER IS NO P&G CHAIRMAN EDWIN L ARTZT SAID IN AN INTERVIEW ANALYSTS SAY MUCH OF THE SAVINGS CAME FROM THE COMPANY'S YEAROLD EVERYDAYLOWPRICE POLICY WHICH KEEPS PRICES CONSISTENTLY LOW BY REDUCING SPENDING ON PROMOTIONS P&G'S EARNINGS WERE ALSO HELPED BY A LOWER TAX RATE OF 322 COMPARED WITH 346 A YEAR AGO AS WELL AS LOWER INTEREST EXPENSES WE'RE STARTING TO SEE POSITIVE EFFECTS FROM OUR VALUE PRICING AND OUR COSTREDUCTION EFFORTS SAID MR ARTZT ADDING THAT MARKETING AND ADMINISTRATIVE EXPENSES WERE DOWN 188 MILLION IN THE QUARTER OUR US BUSINESS IS IMPROVING AND OUR INTERNATIONAL BUSINESS IS HOLDING UP DESPITE SOME VERY TOUGH ECONOMIC SITUATIONS IN EUROPE AND JAPAN HE CITED US UNIT VOLUME INCREASES IN LIQUID DISH DETERGENTS SUCH AS DAWN AND IVORY PAPER TOWELS SUCH AS BOUNTY AND SHAMPOO INCLUDING NEW PANTENE PROV WHICH HE SAID IS SELLING NICELY ABROAD P&G SAW VOLUME INCREASES IN SHAMPOO DISH DETERGENTS AND FEMININE NAPKINS DOMESTIC UNIT SALES OF DISPOSABLE DIAPERS P&G'S BIGGEST PRODUCT LINE WERE DOWN 10 IN THE QUARTER AS EXPECTED MR KOZLOFF THE ANALYST SAID P&G'S RECENT DECISION TO SLASH PAMPERS AND LUVS PRICES NEXT MONTH TO REGAIN LOST MARKET SHARE WILL GOOSE DIAPER VOLUMES A LOT HOWEVER SOME ANALYSTS AND CONSULTANTS QUESTION WHETHER RETAILERS WILL ACTUALLY PASS ON THE LOWER PRICES TO CONSUMERS ALLOWING P&G TO WOO SHOPPERS AWAY FROM PRIVATELABEL DIAPERS I'M SKEPTICAL ABOUT THEIR DIAPER STRATEGY SAID MS AUSTIN MR ARTZT ADMITTED P&G FAULTERED IN DIAPERS LETTING RIVAL KIMBERLYCLARK CORP MAKE INROADS WITH HUGGIES PULLUPS TRAINING PANTS AND ULTRATRIM ITS NEW THIN DIAPER KIMBERLY WENT IN THAT DIRECTION AND THEY GOT AHEAD OF US THERE'S NO QUESTION ABOUT THAT MR ARTZT SAID EVERY ONCE IN A WHILE YOU'RE GOING TO GET BEATEN IN A CERTAIN PART OF THE RACE P&G IS INTRODUCING TRAINING PANTS PAMPERS TRAINERS THIS YEAR BUT HASN'T SAID WHEN IT WILL ROLL OUT NEW ULTRA DRY THINS WHICH ARE STILL IN TESTING 9304280041 930428 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 2 LOW 2 1/2 NEAR CLOSING BID 2 3/4 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 89 DAYS 305 90 TO 149 DAYS 307 150 TO 179 DAYS 308 180 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 312 90 DAYS CERTIFICATES OF DEPOSIT 258 ONE MONTH 263 TWO MONTHS 267 THREE MONTHS 277 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 3 30 DAYS 3 60 DAYS 3 90 DAYS 302 120 DAYS 303 150 DAYS 305 180 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 1/2 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 6 GERMANY 850 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY APRIL 26 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 288 13 WEEKS 295 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 728 60 DAYS 739 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 726 60 DAYS 736 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 9304280040 930428 BUSINESS BRIEF ALDUS CORP FIRM'S NET INCOME PLUNGED TO 362000 IN FIRST QUARTER ALDUS CORP CITING LOWER REVENUE AS CUSTOMERS AWAIT AN UPGRADED PRODUCT SAID NET INCOME IN THE FIRST QUARTER ENDED APRIL 2 PLUNGED TO 362000 OR THREE CENTS A SHARE THE RESULTS SLIGHTLY ABOVE ANALYSTS' ESTIMATES COMPARE WITH EARNINGS OF 47 MILLION OR 31 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE DROPPED 6 TO 416 MILLION FROM 441 MILLION IN THE PERIOD A YEAR AGO OFFICIALS OF THE SOFTWARE CONCERN IN SEATTLE SAID THE DEPRESSED RESULTS WERE EXPECTED BECAUSE CUSTOMERS ARE AWAITING THE NEW VERSION OF THE COMPANY'S PAGEMAKER PRODUCT THAT WAS ANNOUNCED IN JANUARY PAUL BRAINERD ALDUS PRESIDENT SAID THE NEW PAGEMAKER 50 WHICH IS AN UPGRADE OF THE PAGE LAYOUT PROGRAM FOR PERSONAL COMPUTERS SHOULD BE SHIPPED IN THE CURRENT QUARTER ALDUS STOCK FELL 1 CLOSING AT 1375 A SHARE IN LATE TRADING ON THE NATIONAL OVERTHECOUNTER MARKET YESTERDAY 9304280039 930428 TECHNOLOGY BRIEF INTERNATIONAL BUSINESS MACHINES UNIT REACHES AGREEMENT TO DEVELOP NEW TECHNOLOGY AN INTERNATIONAL BUSINESS MACHINES CORP UNIT SAID IT REACHED AN AGREEMENT WITH PRIVATELY HELD OBJECT DESIGN INC OF BURLINGTON MASS TO DEVELOP OBJECTORIENTED DATABASE TECHNOLOGY IBM PROGRAMMING SYSTEMS A SOFTWARE PROVIDER SAID IT ALSO WILL PURCHASE A STAKE IN OBJECT DESIGN WHICH HAD 1992 SALES OF 106 MILLION THE COMPANIES DECLINED TO SPECIFY IBM'S STAKE BUT AN OBJECT DESIGN SPOKESWOMAN SAID THE STAKE AND IBM'S PURCHASE OF OBJECT DESIGN'S OBJECTSTORE LICENSES TRAINING AND OTHER SERVICES TOGETHER ARE VALUED AT 27 MILLION AMONG OTHER PROVISIONS OF THE AGREEMENT IBM BASED IN ARMONK NY SAID IT WILL USE OBJECTSTORE BOTH IN ITS INTERNAL SOFTWARE APPLICATIONS AND IN COMMERCIALLY AVAILABLE PRODUCTS SUCH AS WORKFLOW MANAGEMENT AND COMPILER TOOLS OBJECTORIENTED DATABASES EMPLOY GROUPS OF INFORMATION CALLED OBJECTS THAT CAN BE EASILY CHANGED MAINTAINED AND REUSED SEPARATELY THE IBM JAPAN LTD UNIT SIGNED AN EXCLUSIVE THREEYEAR DISTRIBUTION AGREEMENT WITH DATA SWITCH CORP SHELTON CONN TO SELL DATA SWITCH'S SWITCHING AND RELATED PRODUCTS IN THE JAPANESE COMPUTER MARKET 9304280038 930428 BUSINESS BRIEF BMC SOFTWARE INC FOURTHPERIOD NET ROSE 39 ON LICENSING REVENUE GAINS BMC SOFTWARE INC CITING IMPROVED LICENSING REVENUE AND INTERNAL EFFORTS TO CUT COSTS REPORTED A 39 INCREASE IN FISCAL FOURTHQUARTER EARNINGS THE SUGAR LAND TEXAS MAINFRAME SOFTWARE CONCERN POSTED NET INCOME FOR THE PERIOD ENDED MARCH 31 OF 197 MILLION OR 75 CENTS A SHARE UP FROM 14 MILLION OR 54 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE ROSE 21 TO 655 MILLION THE RESULTS EXCEEDED ANALYSTS' ESTIMATES OF FOURTHQUARTER NET OF ABOUT 73 CENTS A SHARE BMC SHARES ROSE 250 OR 56 TO 4750 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY FOR THE FISCAL YEAR BMC REPORTED NET OF 654 MILLION OR 250 A SHARE UP 42 FROM NET OF 462 MILLION OR 179 A SHARE REVENUE INCREASED 29 TO 2385 MILLION BMC SAID REVENUE FOR ITS DB2 DATABASE MANAGEMENT SYSTEM PRODUCTS ROSE 73 IN THE FISCAL YEAR AND THAT IT HAD LICENSE GROWTH IN ITS IMS DATABASE PRODUCTS ALTHOUGH IT DECLINED TO PROVIDE A FIGURE 9304280037 930428 BUSINESS BRIEF GREAT ATLANTIC & PACIFIC TEA CO FIRM REACHES TENTATIVE PACT WITH 8000 GROCERY WORKERS SUPERMARKET OPERATOR GREAT ATLANTIC & PACIFIC TEA CO REACHED A TENTATIVE SETTLEMENT FOR A 39MONTH CONTRACT WITH 8000 WORKERS AT 125 OF ITS NEW YORK AND NEW JERSEY STORES THE SETTLEMENT IS THE FIRST IN THE CURRENT ROUND OF NEGOTIATIONS BETWEEN NEW YORK AND NEW JERSEY GROCERY MEAT CUTTERS CLERKS AND OTHER EMPLOYEES AND SEVERAL MAJOR GROCERY CHAINS THE TENTATIVE AGREEMENT WITH A&P BASED IN MONTVALE NJ AND LOCAL 464A OF THE UNITED FOOD AND COMMERCIAL WORKERS UNION INCLUDES 76 WEEKLY RAISES FOR MEAT DEPARTMENT HEADS 70 WEEKLY INCREASES FOR CLERKS AND BUTCHERS AND 120 HOURLY RAISES FOR FULLSCALE PARTTIME EMPLOYEES THE PACT ALSO INCLUDES A 110 ADDITIONAL MONTHLY CONTRIBUTION PER EMPLOYEE TO THE COMPANY'S HEALTH AND MEDICAL PLAN THE AGREEMENT WHICH STILL REQUIRES THE APPROVAL OF THE UNION'S MEMBERS WOULD AVERT A POSSIBLE STRIKE WHICH WAS APPROVED BY UFCW MEMBERS SUNDAY A&P MAJORITYOWNED BY GERMANY'S TENGELMANN GROUP OPERATES A&P AND OTHER STORES IT SAID IT WOULDN'T COMMENT ON THE PROPOSED CONTRACT UNTIL THE UNION MEMBERSHIP HAD VOTED ON THE PACT 9304280036 930428 BUSINESS BRIEF RUBBERMAID INC SALES AND MARKETING STRATEGY UPDATED TO MATCH ECONOMY RUBBERMAID INC SAID IT IS BOOSTING ITS EMPHASIS ON NEW PRODUCTS AND NEW MARKETS THE WOOSTER OHIO MAKER OF PLASTIC AND RUBBER PRODUCTS TOLD SHAREHOLDERS AT ITS ANNUAL MEETING THAT IT HAS SET A GOAL OF PRODUCING 33 OF SALES FROM PRODUCTS LESS THAN FIVE YEARS OLD THE COMPANY'S FORMER TARGET WAS 30 RUBBERMAID ALSO HAS SET A GOAL OF ENTERING A NEW MARKET EVERY 12 TO 18 MONTHS PREVIOUSLY THE TARGET WAS EVERY 18 TO 24 MONTHS BY HITTING THE NEW TARGETS RUBBERMAID SHOULD BE ABLE TO REACH ITS LONGSTANDING GOAL OF EXPANDING SALES AND EARNINGS BY 15 A YEAR A SPOKESMAN SAID THE CHANGES WERE NECESSARY THE SPOKESMAN SAID BECAUSE THE US ECONOMY TODAY IS GROWING MORE SLOWLY AND INFLATION IS LOWER THAN IN THE LATE 1970S WHEN THE 15 TARGET WAS FIRST SET 9304280035 930428 BUSINESS BRIEF ALEX BROWN INC BROKERAGE FIRM POSTS RISE OF 19 IN 1STPERIOD PROFIT BROKERAGE AND INVESTMENT BANKING FIRM ALEX BROWN INC SAID IT HAD RECORD FIRSTQUARTER REVENUE AND REPORTED A 19 INCREASE IN NET INCOME THE BALTIMOREBASED COMPANY SAID NET INCOME ROSE TO 201 MILLION OR 128 A SHARE FROM 168 MILLION OR 105 A SHARE REVENUE ROSE 13 TO 1397 MILLION FROM 1242 MILLION ADVISORY AND OTHER REVENUES ROSE 51 TO 166 MILLION WHILE INVESTMENT BANKING REVENUE ROSE 18 TO 535 MILLION A B KRONGARD CHIEF EXECUTIVE OFFICER SAID ALTHOUGH THE FIRST QUARTER OF 1993 WAS A GOOD ONE WE CONTINUE TO APPROACH THE FUTURE WITH WARY CONFIDENCE 9304280034 930428 BUSINESS BRIEF SPI PHARMACEUTICALS INC JOINT VENTURE IS COMPLETED WITH RUSSIAN DRUG CONCERN SPI PHARMACEUTICALS INC SAID IT COMPLETED THE FORMATION OF A NEW DRUG COMPANY WITH LENINGRAD INDUSTRIAL CHEMICAL & PHARMACEUTICAL ASSOCIATION OKTYABR OF ST PETERSBURG RUSSIA SPI OF COSTA MESA CALIF SAID IT WILL HAVE A 75 STAKE IN THE JOINT VENTURE COMPANY CALLED ICN OKTYABR SPI IS 45OWNED BY ICN PHARMACEUTICALS INC WHICH IS STRUGGLING TO FEND OFF A DISSIDENT SHAREHOLDER SEEKING CONTROL OF THE FIRM ICN OKTYABR HAS ASSUMED THE PHARMACEUTICAL BUSINESS OF OKTYABR A RECENTLY PRIVATIZED DRUG COMPANY WITH AN ESTIMATED 10 OF THE RUSSIAN MARKET SPI SAID ICN OKTYABR'S 2100 EMPLOYEES WILL OWN 24 OF THE COMPANY AND THE CITY OF ST PETERSBURG WILL OWN 1 ICN OKTYABR PLANS TO EVENTUALLY BUILD A NEW 40 MILLION PLANT IN ST PETERSBURG ON LAND DONATED BY THE CITY SPI SAID WE'RE WORKING WITH SOME FINANCIAL INSTITUTIONS IT IS YET TO BE DETERMINED HOW MUCH CAPITAL SPI WILL INVEST SPI SAID 9304280033 930428 BUSINESS BRIEF FOUNDATION HEALTH CORP NET ROSE 35 REVENUE 20 IN THE FISCAL THIRD QUARTER FOUNDATION HEALTH CORP CITING CONTAINED HEALTHCARE COSTS AND SHARP GROWTH IN SPECIALTY SERVICES SAID ITS NET INCOME ROSE 35 IN THE FISCAL THIRD QUARTER THE RANCHO CORDOVA CALIF HEALTHCARE SERVICES CONCERN SAID ITS PROFIT ROSE TO 187 MILLION OR 62 CENTS A SHARE IN THE PERIOD ENDED MARCH 31 FROM 138 MILLION OR 48 CENTS A SHARE IN THE SAME PERIOD A YEAR EARLIER REVENUE ROSE 20 TO 3831 MILLION FROM 3194 MILLION IN THE YEAREARLIER QUARTER DANIEL D CROWLEY PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE IMPROVED RESULTS REFLECT THE COMPANY'S CONTINUED CONTAINMENT OF HEALTHCARE COSTS AS WELL AS STRONG GROWTH IN SUCH SPECIALTY SERVICES AS DENTAL AND VISION PLANS THOSE REVENUES HAVE NEARLY DOUBLED TO 614 MILLION FROM 332 MILLION OVER THE PAST NINE MONTHS VS THE SAME YEAREARLIER PERIOD FOUNDATION'S STOCK WAS QUOTED AT 28 UP 1375 IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY 9304280032 930428 BUSINESS BRIEF KU ENERGY CORP KENTUCKY UTILITIES SEES CUTS IN COSTS FROM CLEAN AIR ACT KENTUCKY UTILITIES CO A UNIT OF KU ENERGY CORP SAID IT LOWERED ITS ESTIMATES FOR CAPITAL COSTS OF COMPLYING WITH THE 1990 CLEAN AIR ACT BY 23 MILLION THROUGH 1994 AND 211 MILLION THROUGH THE YEAR 2000 THE ELECTRIC UTILITY SAID LOWERTHANEXPECTED BIDS FROM CONTRACTORS FOR ITS PHASE I SCRUBBER PROGRAM ACCOUNTED FOR THE SAVINGS OF 23 MILLION DURING 1993 AND 1994 A REDUCTION OF 14 FROM THE PREVIOUS ESTIMATE OF 166 MILLION MOREOVER EMISSION ALLOWANCES OBTAINED THROUGH AN AUCTION AND LOTTERY ADMINISTERED BY THE ENVIRONMENTAL PROTECTION AGENCY WILL LET THE COMPANY POSTPONE ITS PHASE II SCRUBBER PROJECT UNTIL ABOUT 2006 INSTEAD OF 2000 AS ORIGINALLY EXPECTED THAT WILL REDUCE OVERALL CAPITAL SPENDING FOR COMPLIANCE WITH THE ACT THROUGH THE YEAR 2000 TO 148 MILLION DOWN 59 FROM THE PREVIOUS ESTIMATE OF 359 MILLION THE COMPANY SAID LAST YEAR KU ENERGY WHICH IS BASED IN LEXINGTON KY EARNED 742 MILLION OR 196 A SHARE ON REVENUE OF 576 MILLION 9304280031 930428 INTERNATIONAL BRIEF CRA LTD CRA EXPECTS TO MAINTAIN OPERATING PROFIT AT '92 LEVEL JOHN UHRIG CHAIRMAN OF CRA LTD SAID HE EXPECTS A WEAK AUSTRALIAN DOLLAR AND GROWING CHINESE DEMAND FOR STEEL TO HELP MAINTAIN THE COMPANY'S 1993 OPERATING PROFIT AT ITS 1992 LEVEL OF 395 MILLION AUSTRALIAN DOLLARS US2846 MILLION CRA A MINERALS AND STEEL PRODUCER IN MELBOURNE AUSTRALIA IS 49OWNED BY RTZ CORP OF BRITAIN MR UHRIG ADDRESSING AN ANNUAL SHAREHOLDERS' MEETING SAID EVENTS IN THE FORMER SOVIET UNION WERE CONTINUING TO ADVERSELY AFFECT COMMODITY PRICES HOWEVER HE SAID CRA'S RESULTS FOR THE FIRST THREE MONTHS OF 1993 COMPARE FAVORABLY WITH YEAREARLIER FIGURES THANKS TO A SLIGHTLY WEAKER AUSTRALIAN DOLLAR AND PRODUCTION FROM NEW OPERATIONS CRA ALSO SAID IT WOUND UP ITS BID FOR COAL & ALLIED INDUSTRIES LTD WITH 70 OF THE TARGET COMPANY'S SHARES UP FROM 40 WHEN IT LAUNCHED THE OFFER LAST MONTH CRA OFFERED A1150 A SHARE FOR COAL & ALLIED WHICH VALUED ALL OF THE COMPANY AT A716 MILLION 9304280030 930428 INTERNATIONAL BRIEF ERCROS SA SHAREHOLDERS MAY BE ASKED TO VOTE ON LIQUIDATION PLAN SHAREHOLDERS OF SPANISH CHEMICAL MAKER ERCROS SA MAY BE ASKED TO VOTE ON A PLAN TO LIQUIDATE THE COMPANY IF A BANK INFUSION DOESN'T MATERIALIZE ERCROS IS INDIRECTLY OWNED BY THE KUWAIT INVESTMENT OFFICE WHICH TOOK A TREMENDOUS FINANCIAL HIT ON ITS SPANISH INVESTMENTS TRADING IN ERCROS SHARES WAS SUSPENDED ON MONDAY AFTER THE COMPANY ANNOUNCED THAT IT WAS SEEKING TO LIQUIDATE ITS ASSETS FOLLOWING A REFUSAL BY CREDITORS TO RENEGOTIATE ITS 416 BILLION PESETA 3596 MILLION DEBT ERCROS ALSO SAID IT WILL SHARPLY REDUCE CAPITAL IN COMPLIANCE WITH SPANISH CORPORATE LAW WHICH REQUIRES A COMPANY TO REDUCE CAPITAL IF ITS LOSSES EXCEED TWOTHIRDS OF THE VALUE OF ITS NOMINAL SHARE CAPITAL ERCROS WHICH IS 38OWNED BY GRUPO TORRAS THE KIO'S SPANISH HOLDING COMPANY SUSPENDED PAYMENTS TO CREDITORS IN JULY BANKS TURNED DOWN AN EARLIER REQUEST TO HELP OUT WITH PART OF ERCROS'S DEBT ARGUING THAT THE KIO WAS FINANCIALLY STRONG ENOUGH TO ASSUME ERCROS'S FINANCIAL OBLIGATIONS 9304280029 930428 ABREAST OF THE MARKET HEALTHCARE REFORM NEWS SENDS DRUG STOCKS UP INDUSTRIALS RISE BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A BURST OF BUYING IN SEVERAL RECENTLY DEPRESSED STOCK GROUPS FUELED IN PART BY HEALTHCARE REFORM NEWS OUT OF WASHINGTON AND A STRONGERTHANEXPECTED CONSUMER CONFIDENCE REPORT POWERED THE MARKET HIGHER DRUG BANKING AND TRANSPORTATION STOCKS ALL RACED HIGHER HELPING THE MARKET BREAK ITS STREAK OF SIX CONSECUTIVE LOSING SESSIONS THE DOW JONES INDUSTRIAL AVERAGE WHICH HADN'T ADVANCED SINCE IT HIT A HIGH ON APRIL 16 JUMPED 1756 OR 052 TO 341593 BROADER AVERAGES WERE ALSO HIGHER BUT ADVANCERS BARELY OUTNUMBERED DECLINERS ON THE NEW YORK STOCK EXCHANGE 962 TO 954 BIG BOARD TOTAL VOLUME WAS 283731000 UP FROM 281107000 MONDAY ARTICLES IN BOTH THE WALL STREET JOURNAL AND THE WASHINGTON POST INDICATING THAT THE CLINTON ADMINISTRATION'S HEALTHCARE REFORMS MAY BE MORE PALATABLE TO THE INDUSTRY THAN PREVIOUSLY EXPECTED HELPED TRIGGER A RALLY IN MEDICAL STOCKS TRADERS SAID BANK AND TRANSPORTATION STOCKS BOTH SNAPPED BACK YESTERDAY FROM SHARP LOSSES MONDAY THE BANKING ISSUES TRACKED BY THE DOW JONES EQUITY MARKET INDEX ROSE 23 AFTER TUMBLING 39 MONDAY THE DOW JONES TRANSPORTATION AVERAGE RALLIED 1893 OR 12 TO 159948 AFTER LOSING 3747 MONDAY BUT ANALYSTS SAID THAT AFTER THE MARKET'S EXTENDED LOSING STREAK A LITTLE GOOD NEWS WENT A LONG WAY IN MOVING PRICES THEY ATTRIBUTED A LARGE PART OF YESTERDAY'S STRENGTH TO TECHNICAL FACTORS THIS WAS A PERFECT PLACE TO HAVE A KNEEJERK OVERSOLD BOUNCE SAID ALFRED GOLDMAN DIRECTOR OF TECHNICAL ANALYSIS AT AG EDWARDS & SONS THE STANDARD & POOR'S 500 STOCK INDEX JUMPED 447 OR 103 TO 43801 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX INCREASED 202 OR 084 TO 24193 AND THE DOW JONES EQUITY MARKET INDEX ROSE 432 OR 105 TO 41503 DAVID SHULMAN MARKET STRATEGIST AT SALOMON BROTHERS SAID INDICATIONS THAT THE CLINTON TAX PLAN MIGHT RUN INTO CONGRESSIONAL OPPOSITION ALSO HELPED STOCKS EVEN THOUGH THE LEVIES ARE TIED TO A DEFICIT REDUCTION PLAN MR SHULMAN SAID THERE HAS BEEN CONCERN THAT THEY WOULD HAVE A DAMPING EFFECT ON THE ECONOMY READINGS ON THE ECONOMY ADDED TO THE POSITIVE BACKDROP THE CONFERENCE BOARD A TRADE GROUP RELEASED A STRONGERTHANEXPECTED REPORT ON APRIL CONSUMER CONFIDENCE WHILE LYNCH JONES & RYAN AFFILIATE JOHNSON REDBOOK RELEASED STRONG RETAIL SALES NUMBERS FOR EARLY THIS MONTH THE DOLLAR MEANWHILE ADVANCED AGAINST THE MARK AND THE YEN INTERRUPTING A LONG SLIDE THAT HAS INSPIRED JITTERS AMONG STOCK INVESTORS HELPING THE CURRENCY WAS INTERVENTION IN THE MARKET BY THE FEDERAL RESERVE AND COMMENTS BY TREASURY SECRETARY LLOYD BENTSEN SUGGESTING THAT THE ADMINISTRATION WANTS THE DOLLAR TO STABILIZE BUT MR GOLDMAN THE AG EDWARDS ANALYST PLAYED DOWN THE ROLE OF NEWS DEVELOPMENTS IN TRIGGERING THE STOCK MARKET'S TURNAROUND I THINK THE MARKET WOULD HAVE LIFTED TODAY EVEN IF THE REDBOOK HAD BEEN YELLOW AND IF BENTSEN HAD BEEN FISHING HE SAID DRUG STOCKS PEPPERED THE BIG BOARD'S MOST ACTIVE LIST MERCK & CO WAS THE MOST HEAVILY TRADED DRUG ISSUE GAINING 1 TO 37 1/8 ON VOLUME OF 44 MILLION SHARES AMONG OTHERS GLAXO HOLDINGS ROSE 1/2 TO 18 5/8 ABBOTT LABORATORIES CLIMBED 1 5/8 TO 28 1/4 PFIZER GAINED 3 7/8 TO 67 3/4 AND SCHERINGPLOUGH INCREASED 2 3/8 TO 68 SHARES OF SCHERINGPLOUGH ALSO WERE LIFTED BY THE COMPANY'S MOVE TO INCREASE ITS QUARTERLY DIVIDEND TO 45 CENTS A SHARE FROM 39 CENTS THE FIRST PAYOUT AT THE NEW RATE WILL BE MADE ON JUNE 1 TO HOLDERS OF RECORD MAY 7 PEPSICO SLIPPED 5/8 TO 36 5/8 ON MARKETLEADING VOLUME OF 56 MILLION SHARES AFTER THE PURCHASE NY BEVERAGE COMPANY REPORTED LOWERTHANEXPECTED FIRSTQUARTER EARNINGS OF 32 CENTS A SHARE ANALYSTS SURVEYED BY IBES THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM HAD FORECAST A PROFIT OF 34 CENTS A YEAR AGO IT HAD INCOME FROM OPERATIONS OF 29 CENTS PROCTER & GAMBLE RALLIED ON STRONGERTHANEXPECTED RESULTS THE STOCK ROSE 7/8 TO 48 7/8 AFTER IT REPORTED A PROFIT OF 72 CENTS A SHARE FOR THE THIRD QUARTER ENDED MARCH 31 UP FROM 67 CENTS LAST YEAR ANALYSTS HAD EXPECTED THE CINCINNATI CONSUMER PRODUCTS GIANT TO EARN JUST 69 CENTS IN THE LATEST PERIOD IBES SAID XEROX FELL 2 3/4 TO 75 EVEN THOUGH THE STAMFORD CONN OFFICE PRODUCTS COMPANY'S FIRSTQUARTER EARNINGS MATCHED ANALYSTS' EXPECTATIONS BUT WHILE IT REPORTED NET OF 177 A SHARE REVERSING A YEARAGO LOSS THAT INCLUDED A BIG ACCOUNTING CHARGE IT SAID REVENUES WERE ESSENTIALLY FLAT STONE CONTAINER LOST 5/8 TO 7 5/8 THE WALL STREET JOURNAL'S HEARD ON THE STREET COLUMN REPORTED THAT ANALYSTS ARE BECOMING INCREASINGLY PESSIMISTIC ABOUT THE CHICAGO PAPER COMPANY'S EARNINGS PROSPECTS CASH AMERICA FELL 7/8 TO 7 AFTER THE FORT WORTH TEXAS PAWN SHOP OPERATOR REPORTED FIRSTQUARTER EARNINGS OF 10 CENTS A SHARE UNCHANGED FROM THE YEARAGO LEVEL THE COMPANY ACKNOWLEDGED THAT ITS RESULTS WERE SHORT OF ITS EXPECTATIONS CARTERWALLACE RECOVERED 3 1/4 TO 27 3/8 THE STOCK PLUNGED 3 MONDAY AFTER THE FOOD AND DRUG ADMINISTRATION REQUESTED THE NEW YORK CONCERN PULL ITS ORGANIDIN PRESCRIPTION DRUGS OFF THE MARKET THE PRODUCTS ARE USED TO TREAT RESPIRATORY AILMENTS US SURGICAL JUMPED 3 1/4 TO 32 THE NORWALK CONN MEDICAL DEVICE CONCERN SAID ESTIMATES PUTTING ITS 1993 EARNINGS NEAR THE TOP END OF THE RANGE OF ANALYSTS' EXPECTATIONS ARE MORE REALISTIC THAN THOSE AT THE BOTTOM FORECASTS RUN FROM 115 A SHARE TO 190 A SHARE 9304280028 930428 FOREIGN EXCHANGE US IN POLICY SHIFT MOVES AGAINST THE YEN BY WALL STREET JOURNAL REPORTERS DAVID WESSEL IN WASHINGTON AND MICHAEL R SESIT IN LONDON ACTING TO DEFUSE TENSIONS WITH JAPAN ON THE EVE OF THIS WEEK'S GROUP OF SEVEN MEETING THE US MOVED TO ARREST THE RAPID RISE OF THE YEN BRINGING THE DOLLAR'S SKID TO A SUDDEN HALT MARKING THE CLINTON ADMINISTRATION'S FIRST INTERVENTION IN THE FOREIGNEXCHANGE MARKETS THE FEDERAL RESERVE BANK OF NEW YORK REPEATEDLY SOLD YEN FOR DOLLARS AFTER THE US CURRENCY HIT A POSTWAR LOW OF 10925 YEN BY LATE YESTERDAY AFTERNOON IN NEW YORK THE DOLLAR HAD RISEN ABOUT 1 AGAINST THE YEN AND THE MARK FROM MONDAY'S LEVELS ALTHOUGH THE ADMINISTRATION HAD MADE NO SECRET OF ITS CONVICTION THAT THE YEN'S VALUE HAD BEEN TOO LOW YESTERDAY'S INTERVENTION SENT AN UNMISTAKABLE SIGNAL THAT THE US NOW AGREES WITH JAPAN THAT THE YEN HAS RISEN TOO FAR TOO FAST THIS SEEMED AN APPROPRIATE MOMENT TO CLEAR THE AIR LAWRENCE SUMMERS THE TREASURY'S UNDERSECRETARY FOR INTERNATIONAL AFFAIRS TOLD REPORTERS A FEW HOURS AFTER TREASURY SECRETARY LLOYD BENTSEN DECLARED THE ADMINISTRATION'S NEW WILLINGNESS TO COOPERATE IN EXCHANGE MARKETS WITH OUR G7 PARTNERS AS CONDITIONS WARRANT THE ADMINISTRATION'S NEW STANCE WASN'T LOST ON TRADERS THE MESSAGE FROM THE CENTRAL BANK TO THE MARKET WAS WATCH OUT WE'RE HERE' AND THE MESSAGE HAS BEEN BROUGHT HOME SAID LAUDY BAHL HEAD OF CORPORATE TRADING AT BANK OF TOKYO LTD IN LONDON IF THE INTERVENTION IS PERSISTENT IT WILL BE EFFECTIVE TRADERS SAID THAT THE FED'S INTERVENTION TACTICS WERE WELLTIMED AND DEFTLY EXECUTED THE MARKET WASN'T EXPECTING INTERVENTION LIKE THIS EVERY INVESTOR IN THE FOREIGNEXCHANGE MARKETS WAS SHORT DOLLARS AND LONG YEN SAID MANFRED TOTZAUER A SENIOR TRADER AT CITIBANK AG IN FRANKFURT TRADING WAS VERY VERY HECTIC EVERYBODY WAS SCRAMBLING TO BUY DOLLARS SAID MR TOTZAUER AS IS ITS CUSTOM THE NEW YORK FED DECLINED TO CONFIRM OR DENY THAT IT HAD INTERVENED IN LATE NEW YORK TRADING THE DOLLAR STOOD AT 11167 YEN UP FROM 11055 YEN IN NEW YORK LATE MONDAY AND AT 15830 MARKS UP FROM 15688 MARKS THE POUND FELL TO 15474 FROM 15840 A DAY EARLIER ABOUT MIDDAY IN TOKYO WEDNESDAY THE DOLLAR WAS TRADING AT 11190 YEN AND AT 15875 MARKS WITH THE US NOW SUPPORTING THE JAPANESE GOVERNMENT'S ATTEMPTS TO CURB THE YEN'S RAPID RISE G7 FINANCE MINISTERS AND CENTRAL BANKS ARE FREE TO FOCUS ON THE NEED TO REVIVE THE WORLD ECONOMY WHEN THEY MEET IN WASHINGTON TOMORROW ECONOMIC GROWTH IN THE MAJOR INDUSTRIAL COUNTRIES ESPECIALLY EUROPE AND JAPAN IS WEAK UNEMPLOYMENT HIGH AND RECOVERY TENTATIVE THE TREASURY'S MR SUMMERS SAID YESTERDAY THE US IS PRESSING JAPAN TO TAKE FURTHER STEPS TO STIMULATE ITS ECONOMY THROUGH FISCAL POLICY IT ALSO IS URGING GERMANY TO CUT INTEREST RATES AND LAST WEEK THE GERMAN CENTRAL BANK DID JUST THAT THE OTHER G7 MEMBERS ARE BRITAIN FRANCE ITALY AND CANADA CLINTON ADMINISTRATION OFFICIALS HAVE ARGUED THAT THE YEN SHOULD RISE AS JAPAN STIMULATES ITS ECONOMY A STRONGER YEN TENDS TO MAKE JAPANESE EXPORTS MORE EXPENSIVE AND US SHIPMENTS TO JAPAN LESS EXPENSIVE THE ADMINSTRATION BELIEVES A STRONGER YEN WOULD HELP ACCOMPLISH THE US GOAL OF REDUCING ITS TRADE DEFICIT WITH JAPAN AND PRESIDENT CLINTON SAID AS MUCH EARLIER THIS MONTH A RULE OF THUMB AMONG ECONOMISTS IS THAT EACH 1 RISE IN THE YEN REDUCES THE US TRADE DEFICIT WITH JAPAN BY ABOUT 1 BILLION THE TRADE GAP WITH JAPAN WAS ABOUT 494 BILLION LAST YEAR BUT THE YEN HAS RISEN ABOUT 12 AGAINST THE DOLLAR SINCE MR CLINTON'S INAUGURATION GOVERNMENT OFFICIALS AND BUSINESS EXECUTIVES IN JAPAN HAVE GROWN INCREASINGLY UNEASY FEARING THAT THE STRONG YEN WILL WEAKEN JAPAN'S FRAGILE ECONOMY THEY ALSO HAVE BECOME UPSET WITH PERCEPTIONS THAT THE US WAS URGING ON THE MARKETS I FEEL ANGER AT THE YEN'S SHARP APPRECIATION LED BY POLITICAL SPECULATION YOSHIRO MORI JAPAN'S TRADE MINISTER SAID LAST WEEK MOREOVER SOME INDEPENDENT ANALYSTS HAVE CONCLUDED THAT THE YEN HAS RISEN ENOUGH WILLIAM CLINE OF THE INSTITUTE FOR INTERNATIONAL ECONOMICS A WASHINGTON THINKTANK IDENTIFIED WITH THE CASE FOR A STRONGER YEN ESTIMATED EARLIER THIS YEAR THAT AN INCREASE IN THE YEN TO ABOUT 110 AGAINST THE DOLLAR WOULD BE SUFFICIENT TO HALVE THE JAPANESE EXTERNAL SURPLUS THE JAPANESE GOVERNMENT HAS BEEN SELLING YEN LATELY BUT HAS BEEN UNSUCCESSFUL IN STOPPING THE CURRENCY'S RISE UNTIL YESTERDAY THE US STAYED ON THE SIDELINES BUT THE STRENGTH OF THE YEN'S RECENT RISE AND THE NEED TO SECURE JAPANESE COOPERATION ON A HOST OF OTHER ISSUES ALTERED THE US STANCE RESPONDING TO A QUESTION THAT WAS POSED AT HIS REQUEST MR BENTSEN TOLD A SENATE COMMITTEE YESTERDAY THERE HAS BEEN SOME MISPERCEPTION ABOUT US EXCHANGERATE POLICY EXCHANGE RATES SHOULD REFLECT ECONOMIC FUNDAMENTALS AND ATTEMPTS TO ARTIFICIALLY MANIPULATE OR INFLUENCE EXCHANGE RATES ARE INAPPROPRIATE MR BENTSEN SAID BUT HE ADDED EXCESSIVE VOLATILITY IS COUNTERPRODUCTIVE FOR GROWTH WE'RE MONITORING DEVELOPMENTS CLOSELY AND STAND READY TO COOPERATE IN EXCHANGE MARKETS WITH OUR G7 PARTNERS AS CONDITIONS WARRANT IT WAS HIS FIRST SUBSTANTIAL COMMENT ON EXCHANGE RATES SINCE HE SUGGESTED IN FEBRUARY THAT HE WOULD LIKE TO SEE A STRONGER YEN TENSIONS BETWEEN US AND JAPANESE OFFICIALS FLARED EARLIER THIS MONTH WHEN MR BENTSEN VISITED TOKYO HE AND HIS JAPANESE COUNTERPARTS DIDN'T COME TO ANY AGREEMENT ON EXCHANGE RATES AND CONSEQUENTLY AGREED NOT TO TALK PUBLICLY ON THE ISSUE BUT A JAPANESE FINANCE MINISTRY OFFICIAL LED REPORTERS TO BELIEVE THAT THE TWO COUNTRIES HAD AGREED THAT THE YEN HAD APPRECIATED TOO RAPIDLY AN ASSERTION THAT INFURIATED US OFFICIALS THE MINISTRY LATER ISSUED A STATEMENT TO CORRECT THE MISIMPRESSION THE US HADN'T INTERVENED TO RESIST A RISING YEN SINCE LATE 1988 IN FEBRUARY 1992 IT SOLD DOLLARS AND BOUGHT YEN IN AN EFFORT TO BOOST THE JAPANESE CURRENCY THE LAST TIME THE FED INTERVENED IN CURRENCY MARKETS FOR ANY REASON WAS LATE LAST AUGUST WHEN IT SPENT 500 MILLION TO BOLSTER THE DOLLAR AGAINST THE MARK THE FED'S ACTION YESTERDAY WAS HIGHLY SIGNIFICANT SAID DAVID M JONES NEW YORKBASED CHIEF ECONOMIST AT AUBREY G LANSTON & CO IT LOOKED AS IF THERE WAS A COORDINATED EFFORT TO CHANGE THE ADMINISTRATION'S POLICY TOWARDS THE DOLLAR THE PRESSURE WILL RESUME ON THE DOLLAR OVER THE NEXT FEW DAYS PREDICTED ROBERTO BIANCHI A FIRST VICE PRESIDENT AT UNION BANK OF SWITZERLAND IN ZURICH THE JAPANESE TRADE SURPLUS IS HUGE AND IT'S MOSTLY WITH THE US IN ADDITION HE SAID THAT THE DOLLAR WILL COME UNDER RENEWED PRESSURE BECAUSE THE PROTECTIONIST ATTITUDE OF THE CLINTON ADMINISTRATION ISN'T GOING TO CHANGE MR BIANCHI PREDICTED THE US CURRENCY COULD FALL A FURTHER 3 TO 5 AGAINST THE YEN AND EUROPEAN CURRENCIES ALTHOUGH ANTICIPATED INTEREST RATES IN GERMANY WOULD HELP BOLSTER THE DOLLAR AGAINST THE MARK IN ANY EVENT YESTERDAY'S INTERVENTION PUTS A FLOOR UNDER THE DOLLAR AGAINST THE YEN FOR AT LEAST THE NEXT WEEK SAID ADRIAN SCHMIDT AN INTERNATIONAL ECONOMIST AT CHASE MANHATTAN BANK IN LONDON BUT TO SUSTAIN IT DEPENDS ON GENERAL DOLLAR STRENGTH RETURNING AND MORE IMPORTANT IT DEPENDS ON THE US BEING SATISFIED THAT THE JAPANESE ARE MOVING SERIOUSLY TO OPEN THEIR MARKETS THE BRITISH POUND WAS QUOTED AT 15774 LATE TUESDAY IN NEW YORK THE QUOTE WAS MISSTATED AS 15474 IN YESTERDAY'S FOREIGN EXCHANGE COLUMN 9304280027 930428 ARTHUR LEVITT TO BE NOMINEE FOR SEC POST CLINTON CHOOSES PUBLISHER EXCHAIRMAN OF AMEX TO SUCCEED BREEDEN BY MICHAEL K FRISBY AND CHRISTI HARLAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON ARTHUR LEVITT JR A PUBLISHER AND FORMER CHAIRMAN OF THE AMERICAN STOCK EXCHANGE HAS BEEN CHOSEN BY PRESIDENT CLINTON TO BE CHAIRMAN OF THE SECURITIES AND EXCHANGE COMMISSION THE PRESIDENT HAS APPROVED MR LEVITT'S NOMINATION AND AN ANNOUNCEMENT COULD COME AS EARLY AS THIS WEEK BARRING ANY UNFORESEEN DEVELOPMENTS ACCORDING TO CLINTON ADMINISTRATION SOURCES MR LEVITT EMERGED AS THE LEADING CANDIDATE FOR THE POST A MONTH AGO AFTER PASSING THE EARLY FAVORITE CONSUELA WASHINGTON A TOP AIDE TO MICHIGAN REP JOHN DINGELL THE CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE COMMITTEE HOWEVER EVEN MR LEVITT'S SUPPORTERS CONCEDED THAT HIS SELECTION WAS DELAYED WHILE THE WHITE HOUSE CONSIDERED THE POLITICAL FALLOUT FROM PICKING HIM OVER MS WASHINGTON WHO WOULD HAVE ADVANCED THE PRESIDENT'S GOALS OF HIRING WOMEN AND MINORITIES AND CONDUCTED THOROUGH VETTING OF HIS BUSINESS HISTORY LAST MONTH THE WALL STREET JOURNAL REPORTED THAT MR LEVITT WAS ACCUSED BY A RIVAL PUBLISHER OF USING CONFIDENTIAL INFORMATION IN THE PURCHASE OF ROLL CALL HIS SUCCESSFUL CAPITOL HILL NEWSPAPER MR LEVITT SAYS THERE WAS NOTHING IMPROPER IN HIS PURCHASE OF THE NEWSPAPER THE WHITE HOUSE HAS ACKNOWLEDGED THAT THE STORY CAUSED SOME PAUSE IN THEIR PROCESS BUT DIDN'T DERAIL HIM STILL FRIENDS SAY THAT EARLIER THIS MONTH MR LEVITT EXPRESSED SOME DOUBTS AS TO WHETHER HE WOULD GET THE JOB MR LEVITT'S CANDIDACY WAS QUIETLY PUSHED BY CONNECTICUT SEN CHRISTOPHER DODD WHO IS CHAIRMAN OF THE SENATE BANKING SUBCOMMITTEE ON SECURITIES MR LEVITT ALSO HELPED RAISE 35 MILLION AT A NEW YORK FUNDRAISER FOR PRESIDENT CLINTON LAST FALL EVEN THOUGH HE DIDN'T SUPPORT HIM IN THE PRIMARIES MR LEVITT COMES FROM A POLITICAL FAMILY HIS FATHER ARTHUR LEVITT SR WAS STATE COMPTROLLER IN NEW YORK FROM 1955 THROUGH 1978 AND HOLDS THE RECORD FOR THE MOST VOTES EVER RECEIVED BY A STATE POLITICIAN AS SEC CHAIRMAN ARTHUR LEVITT JR WOULD SUCCEED RICHARD BREEDEN A REPUBLICAN APPOINTEE WHO IS STEPPING DOWN A FEW MONTHS BEFORE HIS TERM ENDS MR LEVITT WHO IS 62 YEARS OLD WILL JOIN THREE SEC COMMISSIONERS WHO HAVE YET TO TURN 40 A FOURTH COMMISSION SEAT IS VACANT MR BREEDEN WHO HAD ORIGINALLY ANNOUNCED THAT HE WOULD STEP DOWN AS CHAIRMAN ON APRIL 15 IS STAYING ON THROUGH NEXT WEEK HE IS SAID TO BE MULLING SEVERAL JOBS INCLUDING OFFERS FROM LAW FIRMS OF THE SEC ACTIONS PENDING THIS YEAR FEW ARE MORE ANTICIPATED THAN THE COMMISSION'S MARKET 2000 REPORT AN EXHAUSTIVE STUDY OF THE FUTURE OF THE US CAPITAL MARKETS THE REPORT ORIGINALLY SLATED FOR RELEASE THIS SPRING IS NOW EXPECTED TO BE RELEASED IN THE FALL SEC STAFF MEMBERS WORKING ON THE REPORT SAID THE ABSENCE OF A NEW CHAIRMAN DIDN'T DELAY THE REPORT'S RELEASE BUT THEY INDICATED THAT THEY WOULD LIKE TO HAVE THE NEW CHAIRMAN'S BLESSING ON THE REPORT ON A BROADER SCALE THE NEW SEC CHAIRMAN WILL ALSO INHERIT IMPORTANT GROUNDWORK LAID BY MR BREEDEN FOR OPENING THE US SECURITIES MARKETS TO FOREIGN COMPANIES THE GLOBALIZATION OF THE MARKETS IS IMPORTANT TO THE BIG NEW YORK EXCHANGES AS WELL AS THE REGIONAL STOCK EXCHANGES WE'RE NOT JUST COMPETING IN THE US TODAY BUT AROUND THE WORLD SAID LEOPOLD KORINS HEAD OF THE PACIFIC STOCK EXCHANGE THIS IS A PERIOD IN OUR HISTORY WHEN I WOULD LIKE TO THINK THAT THE CHAIRMAN OF THE SEC WOULD HAVE A VERY STRONG VISION OF WHAT THE MARKETPLACE WILL LOOK LIKE IN THE NEXT FEW YEARS MR KORINS WHO SERVED ON THE DISCIPLINARY PANEL OF THE AMERICAN STOCK EXCHANGE SAID HE DIDN'T HAVE MANY DIRECT DEALINGS WITH MR LEVITT MR LEVITT WHO LIVES AND WORKS IN NEW YORK COULDN'T BE REACHED FOR COMMENT LAST NIGHT THE NOMINATION WOULD REQUIRE SENATE CONFIRMATION 9304280026 930428 HEARD ON THE STREET INVESTING ABROAD LOOKING FOR THE NEXT HOT STOCK MARKETS CONSIDER INVESTING SOUTH OF THE BORDER BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IF YOU'RE INTIMIDATED BY THE US STOCK MARKET'S HIGH VALUATIONS CONSIDER VENTURING SOUTH OF THE BORDER LATIN AMERICAN STOCK MARKETS ARE CHEAP AND THEY'RE LOADED WITH COMPANIES THAT OFFER SOME OF THE MOST EXCITING GROWTH STORIES IN THE WORLD TODAY YET MANY US INVESTORS CONTINUE TO SHUN LATIN AMERICAN STOCKS AND MUTUAL FUNDS THAT OWN THEM WHEN IT COMES TO INVESTING IN EMERGING STOCK MARKETS AMERICANS STILL OWN MORE ASIAN SHARES THAN LATIN AMERICAN SHARES ACCORDING TO STANLEY LANZET DIRECTOR OF EMERGING MARKET RESEARCH AT BEAR STEARNS CO VERSUS ASIA MOST PEOPLE ARE STILL UNDERWEIGHTED IN LATIN AMERICA MR LANZET SAYS IN THE PAST THERE HAVE BEEN GOOD REASONS TO FAVOR ASIA OVER LATIN AMERICA FOR US STOCK MARKET INVESTORS LOOKING TO DIVERSIFY ABROAD ASIAN MARKETS OFFERED THE CHANCE NOT ONLY TO ENHANCE RETURNS BUT TO REDUCE RISK BECAUSE THESE MARKETS DON'T TEND TO RISE AND FALL IN SYNC WITH THE US MARKET IN ADDITION PACIFIC NATIONS HAVE ENJOYED A SUSTAINED PERIOD OF ROBUST ECONOMIC GROWTH WHILE LATIN AMERICAN COUNTRIES ARE JUST BEGINNING TO INSTITUTE ECONOMIC REFORMS FOLLOWING A DECADE OF DEBILITATING DEBT PROBLEMS BUT TO IGNORE LATIN STOCKS MIGHT BE SIMILAR TO MISSING THE BIG RETURNS DELIVERED BY PACIFIC RIM MARKETS IN THE 1980S I THINK AN INVESTOR IS GIVING UP A TREMENDOUS AMOUNT OF POTENTIAL BY NOT BEING INVESTED IN LATIN AMERICA MR LANZET SAYS HOW COME WE'RE SEEING A MASSIVE CHANGE IN THE ECONOMIES THROUGHOUT LATIN AMERICA SAYS C THOMAS TULL PRINCIPAL AT GULFSTREAM GLOBAL INVESTORS LTD A DALLAS INTERNATIONAL INVESTMENT FIRM IN LATIN AMERICA ECONOMIC REFORMS ARE GOING HANDINHAND WITH POLITICAL REFORM WITH MEXICO AND CHILE ADOPTING AGGRESSIVE PROGROWTH ANTIINFLATION POSTURES MANY OTHER LATIN COUNTRIES FEEL COMPELLED TO IMITATE THEM CALL IT REGIONAL PEER PRESSURE ACROSS LATIN AMERICA YOU'RE SEEING ECONOMIC DEREGULATION AND INDUSTRIALIZATION YOU'RE SEEING FOREIGN INVESTMENT BY COMPANIES OUTSIDE AND INTERNAL INVESTMENT TARIFFS ARE BEING REDUCED AND INFLATION IS COMING DOWN SAYS MR TULL HE CALLS IT AN ECONOMIC RENAISSANCE FED BY LOW LABOR COSTS ABUNDANT NATURAL RESOURCES AND A VERY AGGRESSIVE HUNGRY DYNAMIC POPULATION BASE INVESTING IN EMERGING STOCK MARKETS IS OFTEN A DICEY PROPOSITION STOCKS CAN BE DIFFICULT TO BUY AND EVEN HARDER TO SELL NEWS ABOUT COMPANIES OR EVEN COUNTRIES IS FREQUENTLY SCARCE LATIN AMERICAN STOCKS ARE NO EXCEPTION IN CHILE FOREIGN MONEY MANAGERS HAVE TO HIRE A LOCAL ADVISER FOR FEES THAT CAN RUN IN EXCESS OF 40000 A YEAR TO INVEST IN THE LOCAL MARKET MR TULL SAYS US INVESTORS CAN AVOID THESE COMPLEXITIES BY BUYING A MUTUAL FUND ACCORDING TO LIPPER ANALYTICAL SERVICES THERE ARE SIX REGULAR MUTUAL FUNDS AND 12 EXCHANGETRADED MUTUAL FUNDS THAT FOCUS ON LATIN AMERICAN STOCKS IN ADDITION THE SHARES OF 11 LATIN AMERICAN COMPANIES TRADE ON REGULATED US STOCK MARKETS AS AMERICAN DEPOSITARY RECEIPTS BY YEAR END THAT NUMBER IS EXPECTED TO DOUBLE OF THESE 11 EXCHANGE OR NASDAQLISTED STOCKS NINE ARE SHOWN IN THE NEARBY CHART NOT INCLUDED ARE MEXICAN TRUCKMAKER GRUPO DINA AND PANAMANIAN BANCO LATINOAMERICANO NEXT WEEK FOR INSTANCE OPPENHEIMER & CO WILL LEAD AN AMERICAN DEPOSITARY SHARE OFFERING FOR BAESA THE ARGENTINIAN PEPSI BOTTLER THE SHARES WILL BE LISTED ON THE NEW YORK STOCK EXCHANGE SALOMON BROTHERS WILL LEAD AN ADR OFFERING FOR CHILEAN COPPER AND ALUMINUM MANUFACTURER MADECO SA IN MAY AND ANOTHER OFFERING IN JUNE FOR CHILE'S MADERAS Y SINTETICOS SOCIEDAD ANONOMIA MASISA A BUILDING PRODUCTS COMPANY ADRS REPRESENT A SHARE OR A SPECIFIED NUMBER OF SHARES OF A FOREIGN STOCK IN ADDITION TO THE EXCHANGETRADED ADRS MANY MORE LATIN AMERICAN STOCKS SUCH AS THE BRAZILIAN TELEPHONE COMPANY TELEBRAS ARE QUOTED ON THE PINK SHEETS A THINLY TRADED OVERTHECOUNTER MARKET BUT PINK SHEET STOCKS AREN'T FOR THE LAYPERSON WHO DOESN'T HAVE TIME TO UNDERSTAND THE IDIOSYNCRACIES OF THESE LESSREGULATED SECURITIES BY INVESTING IN LISTED ADRS YOU ARE ASSURED OF GETTING WHAT YOU ARE ENTITLED TO AS AN INVESTOR SAYS GULFSTREAM'S MR TULL IN TAKING THEIR FIRST STEPS ACROSS THE BORDER INVESTORS SHOULD EXPECT TO HANG ON TO THEIR INVESTMENTS FOR AT LEAST FIVE YEARS AND THEY OUGHT TO SPREAD THEIR STOCK PICKS ACROSS THE REGION WHAT INVESTORS SHOULD WANT TO PLAY IS THE LONGTERM VALUE TREND THE SIGNIFICANT PROFIT OUTPERFORMANCE OF THESE COMPANIES SAYS MICHAEL HOWELL GLOBAL INVESTMENT STRATEGIST AT BARING SECURITIES IN LONDON A PORTFOLIO DIVERSIFIED ACROSS MANY LATIN AMERICAN COUNTRIES MAKES SENSE HE SAYS BECAUSE WHILE THERE ARE REGIONAL SIMILARITIES EACH COUNTRY HAS ITS OWN PARTICULAR ECONOMIC STRENGTH AND VULNERABILITY DON'T PLAY ONE THEME PLAY A SERIES OF THEMES SUGGESTS MR HOWELL INVESTORS MIGHT WANT TO RAISE EXPOSURE IN CHILE BECAUSE THAT GOVERNMENT EXHIBITS THE MOST DISCIPLINED ECONOMIC POLICY OF ALL LATIN AMERICAN NATIONS HE SAYS MEANWHILE INVESTORS MAY WANT TO LIGHTEN BRAZILIAN HOLDINGS BECAUSE THAT COUNTRY'S GOVERNMENT HAS SHOWN LESS ECONOMIC DISCIPLINE ON THE OTHER HAND BRAZIL IS AN ENORMOUS COUNTRY WITH VALUABLE NATURAL RESOURCES AND STRONG INTERNAL DEMAND FUTURE ADR LISTINGS PERHAPS FOR A BRAZILIAN BANK COULD SERVE AS INTERESTING INVESTMENTS WHICH OF THE CURRENT ADRS ARE THE BEST BET MR TULL OF GULFSTREAM GLOBAL SUGGESTS INVESTORS BUY THE TWO CHILEAN ADRS THAT ARE LISTED IN THE US TELEFONOS DE CHILE AND NASDAQTRADED CERVECERIAS BOTH COMPANIES SERVE AS MODELS OF THE KINDS OF GROWTHSTOCK OPPORTUNITIES THAT EXIST IN LATIN AMERICAN MARKETS SPENDING ON LUXURY ITEMS SUCH AS BEER IS RISING IN CHILE AS DISPOSABLE INCOME INCREASES BEER CONSUMPTION LAST YEAR CLIMBED 5 TO 588 LITERS PER CAPITA IN 1992 CERVECERIAS' FLAGSHIP BRAND CRISTAL ACCOUNTS FOR 62 OF ALL BEER CONSUMED IN CHILE MR TULL SAYS HE ESTIMATES THE BREWER COULD EARN 120 A SHARE THIS YEAR A 20 INCREASE FROM 1992 WHILE THE STOCK IS TRADING AT ONLY 16 TIMES EARNINGS BUT WHILE MANY LATIN AMERICAN COMPANIES ARE LIKELY TO GROW RAPIDLY IN THE YEARS AHEAD STRATEGISTS URGE INVESTORS TO BE PATIENT EMERGING ECONOMIES CAN GO THROUGH PAINFUL GROWTH STAGES ON THEIR WAY TO HIGHER FORTUNES FOR INSTANCE ROGER NIGHTINGALE THE LONDONBASED STRATEGY CONSULTANT TO LATINVEST SECURITIES LTD CAUTIONS ABOUT A HICCUP IN THE ARGENTINIAN AND MEXICAN STOCK MARKETS IF TRADE IMBALANCES INCREASE FEARS OF CURRENCY DEVALUATIONS EVEN WITH SUCH FEARS THE POSSIBILITY THAT REFORMING ECONOMIES SUCH AS MEXICO AND CHILE WILL CONTINUE TO DELIVER THE RICH DOUBLEDIGIT GAINS OF THE PAST TWO YEARS IS QUITE HIGH SAYS MR NIGHTINGALE LOOKING FORWARD HE SAYS LONGTERM GAINS IN LATIN AMERICA ARE GOING TO BE FANTASTIC MICHAEL R SESIT IN LONDON CONTRIBUTED TO THIS ARTICLE 9304280025 930428 CREDIT MARKETS TREASURY PRICES TAKE BEATING ON WEAK DEMAND AT US TWOYEAR SALE SIGNS OF ECONOMIC PICKUP BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WAVES OF BAD NEWS FOR THE BOND MARKET POUNDED DOWN TREASURY PRICES AS A GOVERNMENT AUCTION OF TWOYEAR NOTES MET WITH WEAK DEMAND EARLY IN THE DAY INVESTORS AND TRADERS WERE IN A DARK MOOD BECAUSE PRESIDENT CLINTON'S BUDGET DIRECTOR LEON PANETTA TOLD REPORTERS ON MONDAY THAT HE HAD GROWN MORE DISCOURAGED ABOUT PLANS TO CUT THE FEDERAL DEFICIT REPORTS YESTERDAY SHOWING A RISE IN CONSUMER CONFIDENCE AND RETAIL SALES AS WELL AS A LACKLUSTER RECEPTION TO THE TREASURY AUCTION DROVE PRICES DOWN EVEN FURTHER BOND INVESTORS OFTEN REACT NEGATIVELY TO GOOD ECONOMIC NEWS BECAUSE THEY FEAR THAT RAPID ECONOMIC GROWTH COULD LEAD TO HIGHER INFLATION WHICH COULD REDUCE THE VALUE OF THEIR BONDS THE PRICES OF MOST TREASURY SECURITIES DROPPED WITH THOSE MATURING IN FIVE YEARS OR MORE PLUNGING SHARPLY BY DAY'S END THE BENCHMARK 30YEAR TREASURY BOND HAD DROPPED NEARLY A POINT OR NEARLY 10 FOR A BOND WITH A 1000 FACE VALUE TO 102 24/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE ROSE TO 690 FROM 683 ON MONDAY THE 10YEAR NOTE DROPPED NEARLY 1/2 POINT TO 101 21/32 TO YIELD 601 UP FROM 595 THE REPORTS ON MR PANETTA WERE CLEARLY THE CATALYST FOR YESTERDAY'S DECLINES I LOOKED AT THEM AND THOUGHT THIS HAS GOT TO BE BAD NEWS SAID RICHARD B BERNER CHIEF ECONOMIST AT MELLON BANK IT'S A WAKEUP CALL TO THE ADMINISTRATION ACCORDING TO MR BERNER MR PANETTA IS CLEARLY SAYING THAT THE PRESIDENT HAS TO FOCUS HIS ATTENTION ON DEFICIT REDUCTION AND STOP SPREADING HIMSELF A MILE WIDE AND AN INCH DEEP THE REPORTS WORRIED MANY BOND TRADERS YESTERDAY JOHN COSTAS HEAD OF GOVERNMENT TRADING AT FIRST BOSTON CORP SAID THAT WHEN HE READ ABOUT MR PANETTA ON THE WAY TO WORK HE WAS ON THE PHONE TO LONDON TRYING TO SELL MANY IN THE BOND MARKET HAD PINNED HOPES FOR LOWER INTEREST RATES ON PRESIDENT CLINTON'S PROPOSALS TO REDUCE THE FEDERAL BUDGET DEFICIT A SMALLER DEFICIT COULD BENEFIT THE BOND MARKET BECAUSE IT WOULD PROBABLY MEAN A REDUCTION IN THE ISSUANCE OF TREASURY SECURITIES THUS INCREASING THE VALUE OF THOSE ALREADY OUTSTANDING AND PUSHING DOWN INTEREST RATES A SMALLER DEFICIT COULD ALSO MEAN LESS INFLATIONARY PRESSURES INDEED THESE HOPES HAD BEEN THE PRIMARY FORCE BEHIND THE RECENT BOND MARKET RALLY WHICH PUSHED THE YIELD OF THE 30YEAR BOND TO ITS LOWEST LEVEL SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF THE BOND IN 1977 DESPITE THESE WORRIES THERE IS NOT YET A CONSENSUS IN THE BOND MARKET THAT RATES ARE ON THEIR WAY BACK UP IF THE CLINTON ADMINISTRATION HAS LEARNED ITS LESSON AFTER THE DEFEAT OF ITS PROPOSED ECONOMIC STIMULUS PACKAGE LAST WEEK AND IF INFLATION REMAINS SUBDUED WE CAN STILL GET SOME PRETTY GOOD DECLINES IN LONGTERM INTEREST RATES SAID MR BERNER BY FAR INFLATION NEWS IS GOING TO BE THE MOST IMPORTANT NEWS TO THE BOND MARKET HE SAID MR BERNER SAYS A RUN AT A 65 YIELD FOR THE 30YEAR TREASURY BOND IS STILL POSSIBLE IT'S IMPORTANT TO REALIZE THAT WE HAVE SOME CRITICAL DATA TO DEAL WITH IN THE NEXT WEEK AS WELL AS THE MAY REFUNDING ANNOUNCEMENT SAID KEVIN FLANAGAN A MARKET ANALYST AT DEAN WITTER REYNOLDS INC IF IT LOOKS LIKE THE ECONOMY IS NOT RAPIDLY GAINING STRENGTH HE SAID INTEREST RATES SHOULD BE ABLE TO HANG IN THERE BUT I DON'T THINK THERE WILL BE A SIGNIFICANT PICKUP IN RATES OVER THE NEXT TWO WEEKS NEXT WEDNESDAY THE TREASURY IS SLATED TO ANNOUNCE THE SIZE OF ITS QUARTERLY REFUNDING AUCTIONS OF THREEYEAR NOTES 10YEAR NOTES AND 30YEAR BONDS THE MARKET HAS BEEN RIFE WITH SPECULATION THAT THE TREASURY WILL SHIFT THE MIX OF THE OFFERING TO REDUCE THE AMOUNT OF 30YEAR BONDS IN FAVOR OF SHORTTERM SECURITIES SUCH AS THREEMONTH BILLS SUCH A MOVE COULD INCREASE THE VALUE OF OUTSTANDING 30YEAR BONDS NEXT FRIDAY THE GOVERNMENT IS SLATED TO RELEASE THE EMPLOYMENT REPORT FOR APRIL THE REPORT WILL PROVIDE THE FIRST OFFICIAL LOOK AT THE STATE OF THE ECONOMY DURING THE MONTH YESTERDAY THE BOND MARKET WAS ALSO HIT BY A DOUBLE DOSE OF NEWS THAT WAS BEARISH FOR BONDS WE HAD SOME BITS AND PIECES ON THE ECONOMY THAT SEEM TO POINT TOWARD A SOLID REBOUND IN APRIL SAID DANA JOHNSON HEAD OF MARKET ANALYSIS AT FIRST CHICAGO CAPITAL MARKETS THE CONFERENCE BOARD REPORTED ITS INDEX OF CONSUMER SENTIMENT JUMPED TO 677 IN APRIL FROM A REVISED 632 IN MARCH THEN LATE IN THE SESSION THE JOHNSON REDBOOK SERVICE SAID CHAIN AND DEPARTMENT STORE SALES ROSE 23 IN THE THREE WEEKS ENDED APRIL 24 COMPARED WITH THE SAME PERIOD IN MARCH THE MARKET TOOK THESE AS A REMINDER THAT THINGS IN THE ECONOMY ARE PROBABLY ON A REASONABLY SOLID FOOTING MR JOHNSON SAID WITH THE MIX OF BEARISH UNDERCURRENTS WILLING BUYERS FOR THE TREASURY'S 1525 BILLION AUCTION OF TWOYEAR NOTES PROVED SCARCE THE TREASURY AWARDED ITS 1525 BILLION OF TWOYEAR NOTES AT 388 WELL ABOVE EVEN THE WORST MARKET EXPECTATIONS FOR A 386 YIELD THE BIDTOCOVER RATIO A MEASURE OF DEMAND COMPARING THE NUMBER OF BIDS OFFERED TO THE NUMBER OF BIDS ACCEPTED WAS ABOUT AVERAGE AT 26TO1 IT WAS A VERY SLOPPY AUCTION SAID ANDREW BENNER A GOVERNMENT SECURITIES TRADING MANAGER AT NOMURA SECURITIES INTERNATIONAL INC THANKS TO WEAK DEMAND THE YIELD ON THE WHENISSUED TWOYEAR NOTE ROSE AFTER THE RESULTS WERE ANNOUNCED THE ISSUE FINISHED THE SESSION YIELDING 388 COMPARED WITH 385 AT THE 1 PM EDT AUCTION DEADLINE IN ADDITION TO THE POOR AUCTION TREASURY ISSUES WITH SHORTER MATURITIES WERE ALSO HURT BY AN INCREASE IN THE SIZE OF NEXT WEEK'S AUCTIONS OF THREEMONTH BILLS AND SIXMONTH BILLS THE TREASURY ANNOUNCED THAT THE AUCTIONS WILL TOTAL 212 BILLION UP FROM THE 20 BILLION SOLD AT THIS WEEK'S AUCTION THE MARKET STILL HAS TO CONTEND WITH THE TREASURY'S 11 BILLION FIVEYEAR NOTE AUCTION TODAY LATE YESTERDAY THE WHENISSUED FIVEYEAR NOTE YIELDED 518 COMPARED WITH 510 AT THE END OF TRADING MONDAY 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 1995 PRICES OF CORPORATE BONDS FELL WITH THE TREASURY MARKET IN THE WAKE OF THE DISAPPOINTING TREASURY AUCTION AND CONTINUED SKITTISHNESS ABOUT RISING INFLATION WHEN THE SESSION ENDED INVESTMENTGRADE ISSUES HAD SLIPPED 1/8 POINT TO AS MUCH AS 5/8 POINT AMONG 30YEAR MATURITIES BUT INVESTORS WERE LARGELY ON THE SIDELINES AND SPREADS BETWEEN CORPORATE BOND YIELDS AND COMPARABLE TREASURYS ENDED LITTLE CHANGED JUNK BONDS SLIPPED 1/4 POINT TO 3/8 POINT IN CHOPPY TRADING THE MARKET FEELS VERY HEAVY A TRADER SAID THE HIGHYIELD MARKET HAS BECOME MUCH MORE SENSITIVE TO RISING INTEREST RATES AND YESTERDAY'S BACKUP IN THE TREASURY MARKET JUST MADE INVESTORS THAT MUCH MORE NERVOUS AMONG SPECIFIC ISSUES STONE CONTAINER CORP 1075 SENIOR SUBORDINATED NOTES MATURING IN 1997 DROPPED THREE POINTS OR 30 FOR A BOND WITH A 1000 FACE VALUE TO 82 1/2 INVESTORS CONTINUE TO WORRY ABOUT STONE'S ABILITY TO LIFT ITS SAGGING CASH FLOW AND MEET HUGE DEBT SERVICE REQUIREMENTS TRADERS SAID IN THE NEWISSUE MARKET INTEREST RATES ROSE FOR THE FOURTH CONSECUTIVE SESSION DRIVING MANY PROSPECTIVE BORROWERS FROM THE MARKET AN UNUSUALLY STRUCTURED OFFERING BY AMERICAN TELEPHONE & TELEGRAPH CO ACCOUNTED FOR 400 MILLION OF THE SESSION'S 1 BILLION OF ISSUANCE THE ISSUE MAKES FIXED INTEREST PAYMENTS FOR ONE YEAR AND THEN SWITCHES TO FLOATINGRATE PAYMENTS UNTIL MATURITY BORROWERS GENERALLY ISSUE EITHER FIXED OR FLOATINGRATE DEBT BUT NOT BOTH WITHIN ONE SECURITY THE TELECOMMUNICATIONS GIANT OFFERED 400 MILLION OF NOTES DUE MAY 4 1995 PRICED AT PAR TO YIELD 335 FOR ONE YEAR ON MAY 4 1994 THE NOTES BEGIN PAYING INTEREST QUARTERLY AT A RATE EQUIVALENT TO THE THREEMONTH LONDON INTERBANK OFFERED RATE THE NOTES WILL THEN BE RESET QUARTERLY AT THAT RATE UNTIL MATURITY THE THREEMONTH LIBOR IS CURRENTLY AT 31875 THE NONCALLABLE ISSUE IS RATED DOUBLEA3 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEA BY STANDARD & POOR'S CORP THE NOTES WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS PRICES OF MUNICIPAL BONDS ENDED LOWER AS ISSUERS BROUGHT NEARLY 1 BILLION OF SECURITIES TO THE MARKET IN SECONDARY TRADING PRICES GENERALLY CLOSED STEADY TO 1/2 POINT LOWER AMONG ACTIVELY TRADED ISSUES THE LOS ANGELES DEPARTMENT OF WATER & POWER'S 5875 REFUNDING BONDS OF 2030 FINISHED 3/8 POINT LOWER AT 99 3/4 TO YIELD 588 LATE MONDAY THOSE BONDS YIELDED 584 WITH YIELDS RISING FEWER ISSUERS ARE FLOCKING TO THE MARKET WITH OFFERINGS INDEED THE CLUSTER OF ISSUES PRICED YESTERDAY DIDN'T INCLUDE THE NEW YORK STATE DORMITORY AUTHORITY'S LARGE SERIES 1993A REFUNDING REVENUE BOND ISSUE A MERRILL LYNCH & CO GROUP WAS EXPECTED TO PRICE AS MUCH AS 12 BILLION OF STATE UNIVERSITY EDUCATIONAL FACILITIES REFUNDING BONDS FOR THE AUTHORITY BUT THE ISSUE WAS PUT ON HOLD BECAUSE OF THE MUNI MARKET'S WEAK CONDITION THE ISSUERS THAT DID COME TO THE MARKET YESTERDAY INCLUDED WASHINGTON DC A LEHMAN BROTHERS GROUP PRICED WASHINGTON'S 3649 MILLION OF SERIES 1993A GENERAL OBLIGATION REFUNDING BONDS AND GAVE THEM YIELDS RANGING FROM 350 IN 1994 TO 600 IN 2005 MOODY'S INVESTORS SERVICE INC HAS RATED THE ISSUE BAA STANDARD & POOR'S CORP HAS ASSIGNED A SINGLEAMINUS RATING AND FITCH INVESTORS SERVICE INC HAS ALSO ASSIGNED A SINGLEAMINUS RATING WEAKNESS IN INTERMEDIATE TREASURYS AND SELLING BY MORTGAGE BANKERS PULLED MORTGAGE SECURITIES PRICES LOWER BUT MORTGAGE SECURITIES STILL OUTPERFORMED TREASURYS IN SOME CASES AS SECURITIES SOLD BY MORTGAGE BANKERS WERE PICKED UP BY INVESTORS AND DEALERS GATHERING COLLATERAL FOR REAL ESTATE MORTGAGE INVESTMENT CONDUIT DEALS AMONG 7 ISSUES FOR MAY DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES FINISHED 1/2 POINT WEAKER AT 100 9/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES FINISHED 11/32 LOWER AT 100 19/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES FINISHED 11/32 LOWER AT 100 14/32 THE PERSISTENT STREAM OF NEW REMICS CONTINUED WITH ABOUT 13 BILLION OF DEALS ANNOUNCED ON THE HEELS OF MONDAY'S 1 BILLION FOUR FANNIE MAE ISSUES WERE INCREASED FOR A TOTAL OF 1 BILLION AND A NEW 326 MILLION FREDDIE MAC DEAL WAS ANNOUNCED MARKET PLAYERS ALSO AWAIT FORTHCOMING PREPAYMENT DATA STARTING WITH MONDAY'S RELEASE OF MIDMARCH TO MIDAPRIL FREDDIE MAC PREPAYMENTS IT'S WIDELY EXPECTED THAT PREPAYMENTS ACCELERATED SIGNIFICANTLY DURING THAT PERIOD THOMAS D LAURICELLA CONTRIBUTED TO THIS ARTICLE 9304280024 930420 REVIEW & OUTLOOK EDITORIAL WEIRD IN WACO THIS IS NOT THE AGE OF REASON WE MAY BE ABLE TO DECIPHER THE MYSTERIES OF THE HUMAN GENOME BUT WE CAN'T BEGIN TO FIGURE OUT DAVID KORESH AND THE BRANCH DAVIDIANS NOT THAT WE DIDN'T TRY FOR 51 DAYS AN ARMY OF FEDERAL AGENTS AND INNUMERABLE MEDIA CAMP FOLLOWERS LAY SIEGE TO THE BRANCH DAVIDIANS' COMPOUND ON THE OUTSKIRTS OF WACO 90 WINDY MILES SOUTH OF DALLAS PERIODICALLY THE HOLY MAN INSIDE THE COMPOUND WOULD RELEASE PIECES OF HIS THEOLOGY TO THE OUTSIDE ENCAMPMENT AND THE MEDIA WOULD DISCOURSE ABOUT HIS THOUGHTS ON THE EVENING NEWS TV REPORTERS AT STATIONS ALL OVER AMERICA HAVE BECOME QUITE ADEPT AT THIS SORT OF THING SPEAKING IN TONES OF UTTER CALM AND RATIONALITY ABOUT AN UNENDING STREAM OF CRAZINESS MAYHEM AND MURDER YES BY ALL MEANS LET US NOW CONSIDER MR KORESH'S THOUGHTS ON THE CHRONOLOGY OF PASSOVER IN TIME THE GOVERNMENT'S EXHAUSTED NEGOTIATORS IN WACO DECIDED TO RAM THE COMPOUND WITH A TANK LEADING TO YESTERDAY'S INFERNO WHICH AS OF LATE AFTERNOON APPEARED TO HAVE REDUCED THE COMPOUND AND PRESUMABLY MOST OF ITS INHABITANTS TO ASH THERE WILL BE POSTMORTEMS INTENSE AND MICROSCOPIC ANALYSIS WILL BE IMPOSED ON THE SIEGE AND ON YESTERDAY'S FBI DECISION TO ASSAULT THE COMPOUND PERHAPS IT COULD HAVE BEEN HANDLED BETTER BUT WE DOUBT THAT ANYONE IN ANY OFFICIAL CAPACITY IS GOING TO COME FORWARD TO SAY IN A CONVINCING WAY WHAT WE SHOULD HAVE DONE A LONG TIME AGO ABOUT THE WEIRD PEOPLE LIVING TOGETHER ON THE EDGE OF WACO NO ONE HAD A CLUE THE HARD AND DISCOMFITING TRUTH IS THAT WE SEEM TO HAVE STUMBLED INTO AN AGE WHEN REASON IS ROUTINELY HUMBLED BY THE IRRATIONAL OR AT LEAST BY EVENTS FOR WHICH TRADITIONAL SOURCES OF AUTHORITY FAIL TO OFFER ANY ADEQUATE EXPLANATION WACO'S FLAMES AFTER ALL WEREN'T THE ONLY STORY OF PAST DAYS SCENES OF ABJECT SUFFERING FLOWED OUT OF THE BESIEGED BOSNIAN TOWN OF SREBRENICA YESTERDAY SCENES OF MASS REMORSE AND CRIES FOR REVENGE FLOWED OUT OF SOUTH AFRICA FOLLOWING THE MURDER OF A POPULAR BLACK LEADER IN LUCASVILLE OHIO AN INMATE PRISON TAKEOVER PERSISTS UNREASON TO THE RELIEF OF ALL SPARED LOS ANGELES AND THAT WAS JUST THE WEEKEND THE LONG VIEW A YEAR PRODUCES THIS CATALOG IN WASHINGTON DC THERE WAS A MAN WHO DROVE UP TO PEDESTRIANS SAID HAVE A NICE DAY AND FIRED A SHOTGUN INTO THEIR FACES AMY FISHER AND JOEY BUTTAFUOCO MIA AND WOODY THE GLENRIDGE NJ GANG RAPE MICHAEL GRIFFIN AND DAVID DUNNE SOMALIA ARMENIA AND AZERBAIJAN THE WORLD TRADE CENTER BOMBING ZOE BAIRD'S AND KIMBA WOOD'S NANNIES SPOTTED OWLS VS LOGGERS THE ONLY THEME IN THESE EVENTS IS THAT THEY LACK CONTROLLING EXPLANATIONS OR SEEM TO AND WHEN THERE IS AN EXPLANATION OR EVEN SOLUTION SOMEONE WILL COME FORWARD TO REFUTE IT OR FIGHT IT THEY WILL FILE A LAWSUIT OR THROW A BOMB OR HOLD A DEMONSTRATION IN NEW YORK OVER THE WEEKEND TWO FEDERAL JUDGES GRANDLY ANNOUNCED THEY WOULD HEAR NO MORE DRUG CASES BECAUSE THEY DON'T LIKE THE DRUG LAWS NO DOUBT THE CITY'S THUGS ARE COMMITTING THIS REASONING TO MEMORY FOR QUOTATION AT THEIR COMING ARRAIGNMENTS THE ENEMIES AND CRITICS OF THE ENLIGHTENMENT THE AGE OF REASON WILL SAY WE ARE GETTING WHAT WE DESERVE FOR HAPPILY ACCEPTING THAT GOD WAS DEAD THEY WARNED US ABOUT REMOVING ORGANIZED FAITH FROM THE CENTER OF ACTIVE IDEAS INDEED RIDICULING IT NOW WE SEE THAT THE RELIGIOUS URGE IS STRONG ENOUGH THAT IN MANY CONFUSED LIVES HEALTHY FAITH IS SUPPLANTED BY MUCH WEIRD BEHAVIOR SUCH AS THE KORESH CULT MATURE FAITH WILL HELP A LOT BUT REASON ISN'T DOING SO WELL EITHER SERIOUS THINKING REASON HAD BETTER FIND A WAY TO BECOME RESPECTABLE AGAIN REASON IS IN SOME DISREPUTE WE SUSPECT BECAUSE WE'VE BEEN SO PROFLIGATE WITH OUR PROOFS AND OUR RIGOR JUDGES JOURNALISTS POLITICIANS PROFESSORS UNIVERSITY PRESIDENTS HEADS OF PROFESSIONAL ASSOCIATIONS FOUNDATIONS AND CLERGY HAVE FOR A LONG TIME BEEN AFRAID TO UPHOLD TRADITIONAL STANDARDS THEY NOT ONLY ENTERTAINED NEARLY ANY CRACKPOT IDEA THEORY OR SOCIAL GRIEVANCE THAT ENTERED THEIR KEN BUT EMBRACED AND LEGITIMIZED A LOT OF THEM MAKES THE HEART FLUTTER WAVE IT ON THROUGH GIVE IT TENURE A LAW A COVER STORY A SPOT ON OPRAH IT'S NICE TO HAVE A DYNAMIC VIBRANT SOCIALLY PROBING SOCIETY AS WE DO BUT WHERE ARE THE CRITICS WHERE ARE THE PEOPLE IN AMERICAN LIFE WHO USED TO ROUTINELY POINT OUT THAT SOME IDEAS SOME COMPLAINTS SOME MOVEMENTS ARE IN TURN WEAK UNSUPPORTABLE OR FALSE DID YOU HEAR ONE PERSON EVER SAY ONSCREEN THAT DAVID KORESH IS OR WAS A NUT NOPE UNTIL THE MANY PEOPLE WHO USED TO KNOW BETTER IN AMERICAN LIFE SUMMON THE COURAGE TO POSE REASON AND ESPECIALLY RIGOR AGAINST THE NATION'S NUTTINESS IT WON'T STOP IT WON'T EVEN SLOW DOWN SEE RELATED LETTERS LETTERS TO THE EDITOR THE SLEEP OF REASON WSJ 4/28/93 9304200093 9304280023 930428 SPEAKING OF BUSINESS CLINTON'S HOMEGROWN OPEC BY LINDLEY H CLARK JR PRESIDENT CLINTON'S APPROVAL RATING KEEPS FALLING EVERY TURN HE MAKES HE SEEMS TO STUMBLE REPUBLICANS DEFEATED MUCH OF HIS STIMULUS PACKAGE HIS TRIAL BALLOON IDEA OF A VALUEADDED TAX EXPLODED EVEN WORSE HE'S FACING WIDENING OPPOSITION FROM HIS OWN ALLIES THE DEMOCRATS DESPITE THESE GLOOMY 100 FIRST DAYS MR CLINTON WILL PROBABLY MAKE A FEW MORE EFFORTS TO FIND A WAY TO GENERATE REVENUE FOR BIG PROJECTS LIKE HIS HEALTHCARE REFORM BUT MANY OF THE TAX IDEAS THE ADMINISTRATION IS KICKING AROUND HAVE PROBLEMS TAKE THE ENERGY TAX FOR EXAMPLE AT FIRST THAT TAX SEEMED TO HAVE ALMOST EVERYTHING GOING FOR IT THE TAX IS DESIGNED TO BRING IN 22 BILLION A YEAR WHEN IT IS FULLY EFFECTIVE SOMEONE HOWEVER MUST HAVE REALIZED THAT THIS WOULDN'T BE THE MOST POPULAR ACT OF THE CLINTON ADMINISTRATION SINCE THE CLINTONIANS PLAN TO TAKE A LONG TIME TO PUT THE LEVY INTO EFFECT PERHAPS TO LET PEOPLE GET USED TO THE PAIN THE TAX WON'T EVEN BEGIN TO BE PHASED IN UNTIL NEXT YEAR AND FINAL ACTION WON'T COME UNTIL THREE YEARS AFTER THAT SO IF IT'S ANY CONSOLATION THE TAX ISN'T GOING TO AMOUNT TO QUITE SO MUCH IN TERMS OF DOLLARS RIGHT AWAY MR CLINTON HIMSELF WAS AT LEAST A LITTLE NERVOUS ABOUT ENERGY TAXES BEFORE THE INAUGURATION HE WASN'T CLEAR ABOUT IT BUT HE DID SAY THAT HE OPPOSED AN EXCESSIVE GASOLINE TAX APPARENTLY ON THE GROUNDS THAT IT WOULD BE REGRESSIVE HITTING THE POOR MORE THAN THE RICH AS A PERCENTAGE OF INCOME THE NEW PRESIDENT APPARENTLY CONTINUED TO WORRY ABOUT REGRESSION AFTER THE INAUGURATION TO EASE THE BURDEN ON THE WORKING POOR THE EARNED INCOME TAX CREDIT WOULD BE SIGNIFICANTLY INCREASED THIS CREDIT WAS FIRST SET UP IN THE 1970S TO HELP OFFSET SOCIAL SECURITY AND MEDICARE TAXES ON THE WORKING POOR THERE WILL ALSO BE INCREASES IN FEDERAL ENERGYASSISTANCE PROGRAMS AND FOOD STAMPS THE ENERGY LEVY HOWEVER ISN'T GOING TO BE A SIMPLE INCREASE IN THE GASOLINE TAX IT WILL BE ARE YOU READY FOR THIS IMPOSED ON BRITISH THERMAL UNITS IT WILL IN OTHER WORDS BE IMPOSED ON THE HEAT CONTENT OF THE FUELS SUBJECT TO THE TAX THERE'S A LITTLE BIT OF LOGIC IN THIS AND A LOT OF POLITICS THE TAX PLANNERS SAID THEY WANTED TO TAX MOST HEAVILY THE FUELS THAT ESPECIALLY DAMAGED THE ENVIRONMENT AND WERE LEAST VITAL TO NATIONAL SECURITY SO THIS CONVINCED THEM THAT COAL SHOULD BE TAXED THE MOST AND NATURAL GAS THE LEAST BUT THEN IT OCCURRED TO SOMEONE THAT COAL HAD A LOT OF POLITICAL CLOUT SO OIL WOULD BE TAXED AT A HIGHER RATE THE TAX WOULD HIT COAL AT A RATE OF 257 CENTS PER MILLION BTUS AND OIL AT A RATE OF 599 CENTS PER MILLION BTUS THERE IS A VERY COMPLICATED SCHEDULE FOR OTHER TYPES OF FUEL IF YOU CAN FIGURE OUT A WAY TO RUN YOUR CAR ON GEOTHERMAL POWER INCIDENTALLY IT WILL BE EXEMPT FROM THE TAX IN THE UNLIKELY EVENT THAT STIRS ANY INTEREST GEOTHERMAL POWER IS SOMEHOW INVOLVED WITH THE HEAT IN THE EARTH'S INTERIOR WHAT WE'VE BEEN TALKING ABOUT UP TO HERE HOWEVER HAS BEEN MAINLY THE LITTLE STUFF ENERGY RUNS CARS AND AIRPLANES GETS THINGS DIRTY AND HEATS OUR HOUSES IT ALSO HOWEVER IS A VITAL PART OF THE COST OF NEARLY ALL MANUFACTURED GOODS AS WE DISCOVERED A FEW YEARS BACK WHEN THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES RAISED ITS PRICE FOR THE OIL IT SOLD US ENERGY COST INCREASES CAN PRETTY QUICKLY MOVE THROUGH THE ECONOMY NOW PRESIDENT CLINTON WANTS TO SET UP HIS OWN OPEC A MADEINTHEUSA OPEC WOULD NOT SIMPLY PENALIZE CONSUMERS THERE'S A LOT OF PROPAGANDA AROUND THAT THE ENERGY TAX WOULD BE PRIMARILY A STEP TOWARD A CONSUMPTION TAX THAT THE ENERGY TAX PROPONENTS SAY WE VERY BADLY NEED AT A RECENT COOPERS & LYBRAND CONFERENCE JOHN WILKENS DIRECTOR OF THE ACCOUNTING FIRM'S TAX ECONOMIC POLICY PRACTICE SAID REMEMBER THE BTU TAX IS ESSENTIALLY A CONSUMPTION TAX AND A CONSUMPTION TAX DOES GET AT THE UNDERGROUND ECONOMY BECAUSE THOSE FOLKS THAT AREN'T PAYING THEIR FAIR SHARE OR HOLDING BACK ONE WAY OR ANOTHER MAYBE NOT EVEN FILING A RETURN ARE STILL CONSUMING HE ACKNOWLEDGED THAT SUCH A TAX WOULD BE A VAST DEPARTURE IN THIS COUNTRY BUT CLAIMED IT WOULD PUT US IN THE MAINSTREAM SINCE OUR TRADING PARTNERS ALREADY ARE IMPOSING SUCH TAXES THERE IS A CERTAIN AMOUNT OF TRUTH TO THAT BUT A LOT OF AMERICAN TAXPAYERS AFTER FAITHFULLY GOING THROUGH THEIR APRIL 15 NIGHTMARE WON'T GET A LOT OF SATISFACTION FROM THE FACT THAT THEY WILL BE PAYING ENERGY TAXES BECAUSE SOME OF THEIR FELLOW CITIZENS FAILED TO FILE THEIR FORM 1040S HOWEVER MUCH THE ENERGY LEVY IS A CONSUMPTION TAX IT IS CLEARLY A PRODUCTION TAX THE CLINTON ADMINISTRATION SUPPOSEDLY TRYING TO GET THE ECONOMY GROWING FASTER SHOULD RECOGNIZE THAT ANY SIGNIFICANT ENERGY TAX WOULD HAVE SERIOUSLY DEPRESSING EFFECTS ON THE ECONOMY AN ENERGY TAX WOULD RAISE THE COSTS OF PRODUCING PRACTICALLY EVERYTHING THE OBVIOUS IMPACT IS ON THE COST OF TRANSPORTING FINISHED GOODS RAW MATERIALS AND EVERYTHING ELSE THAT GOES INTO PRODUCTS BUT ENERGY ALSO RUNS THE MACHINES THAT TURN OUT THE GOODS WITH COSTS UP PRODUCERS WOULD RAISE THEIR PRICES AS CONSUMERS CUT THEIR PURCHASES OF HIGHERPRICED PRODUCTS MUCH OF THE IMPACT OF THE ENERGY TAX WOULD BE SHIFTED TO THE LABOR AND CAPITAL USED TO PRODUCE THE PRODUCT SOMEHOW AS YOU THINK ABOUT IT THOSE SPENDING CUTS DO LOOK EASIER AND EASIER 9304280022 930428 WHAT'S NEWS WORLDWIDE SERBS POUNDED NORTHWESTERN BOSNIA AS NEW UN SANCTIONS TOOK EFFECT UN OFFICIALS SAID THE BIHAC REGION WAS UNDER SERB ARTILLERY ATTACK AND AN INFANTRY COMPANY BACKED BY 10 TANKS HAD MOVED INTO THE AREA THE OFFENSIVE ALONG WITH AN ULTIMATUM ISSUED TO UN PEACEKEEPERS IN SREBRENICA SIGNALED SERBS' REFUSAL TO BEND TO THE TOUGHER SANCTIONS AGAINST SERBLED YUGOSLAVIA THAT WENT INTO EFFECT YESTERDAY US MILITARY LEADERS OPPOSE AIR STRIKES AGAINST THE SERBS BECAUSE BOMBING IS DIFFICULT AND COULD LEAVE THE US WITH THE CHOICE OF QUITTING OR USING GROUND TROOPS THE JOINT CHIEFS SAY THE LEAST TROUBLING OPTION WOULD BE FOR THE US TO SEEK AN END TO THE ARMS EMBARGO ON THE MUSLIMS AND THEN PERHAPS TO ARM THEM IN SARAJEVO AN EXPLODING TANK SHELL KILLED THREE CHILDREN THE BRITISH LEADER OF A UN CONVOY WAS SERIOUSLY HURT WHEN SHOT BY SNIPERS NORTH OF THE CAPITAL SECRETARY OF STATE CHRISTOPHER MET WITH ARAB AND ISRAELI NEGOTIATORS IN WASHINGTON URGING THEM TO SET ASIDE PROCEDURAL DISCUSSIONS AND FOCUS ON THE SUBSTANTIVE ISSUES AT THE HEART OF THEIR 46YEAROLD DISPUTE CHRISTOPHER'S INTERVENTION CAME AS MIDEAST TALKS RESUMED THE PALESTINIANS MEANWHILE ACCUSED ISRAEL OF ESCALATING VIOLENCE RUSSIA'S PRESIDENT YELTSIN DISPLAYED RENEWED ASSERTIVENESS AFTER WINNING A NATIONWIDE VOTE OF CONFIDENCE ISSUING A SHARP WARNING TO SERBS IN THE FORMER YUGOSLAVIA AND PRESSING AHEAD WITH PLANS TO VISIT JAPAN YELTSIN'S AIDES ALSO STEPPED UP EFFORTS TO GET A NEW CONSTITUTION ADOPTED THAT WOULD STRENGTHEN THE PRESIDENCY LEADING SENATORS CAUTIONED THE CLINTON ADMINISTRATION IT FACES A TOUGH TIME WINNING CONGRESSIONAL SUPPORT FOR ALL THE MONEY PLEDGED TO RUSSIA AND TO THE INTERNATIONAL BANKS THAT AID DEVELOPING NATIONS AT A HEARING DEMOCRAT LEAHY VOICED FRUSTRATION OVER A DECISION TO PROMISE MOSCOW EXTRA FUNDING WITHOUT DECIDING HOW TO PAY FOR IT SOUTH KOREA HAS LAUNCHED AN INVESTIGATION INTO PROCUREMENT PRACTICES IN THE COUNTRY'S 6 BILLIONAYEAR ARMS MARKET THE PROBE WHICH COULD PROVE EMBARRASSING TO FOREIGN DEFENSE CONTRACTORS IS PART OF AN ANTICORRUPTION CAMPAIGN UNDERTAKEN BY THE NEW ADMINISTRATION OF PRESIDENT KIM YOUNG SAM CHINA AND TAIWAN AGREED TO SET UP A FORMAL CHANNEL FOR NEGOTIATIONS ON A RANGE OF ECONOMIC AND SOCIAL ISSUES THE ACCORD WAS ANNOUNCED IN SINGAPORE ON THE FIRST DAY OF A TWODAY MEETING THAT REPRESENTED THE HIGHESTLEVEL CONTACT BETWEEN THE TWO LONGTIME ADVERSARIES SINCE THE END OF THE CHINESE CIVIL WAR IN 1949 EGYPTIAN LEADER MUBARAK MOVED TO CURB THE USE OF EXCESSIVE FORCE AGAINST SUSPECTED ISLAMIC EXTREMISTS THE GOVERNMENT ORDERED POLICE TO USE MORE RESTRAINT IN MAKING ARRESTS AND TO OPEN FIRE ONLY WHEN THEIR LIVES ARE ENDANGERED ON MONDAY THE COMMANDING GENERAL IN ASSIUT WAS REMOVED BECAUSE OF HIS HARSH TACTICS AN ITALIAN SENATE PANEL RECOMMENDED WAIVING PARLIAMENTARY IMMUNITY FOR SEVENTIME PREMIER ANDREOTTI SO HE CAN BE INVESTIGATED FOR MAFIA TIES AS A CHRISTIAN DEMOCRAT SENATOR FOR LIFE ANDREOTTI IS CURRENTLY PROTECTED FROM PROSECUTION THE COMMITTEE'S RECOMMENDATION WILL GO TO THE SENATE FOR A VOTE THE PENTAGON IS LIKELY TO MOVE SOON TO OPEN UP MORE COMBAT ROLES TO WOMEN A SPOKESMAN INDICATED THE FIRST STEP INVOLVING LIFTING MANY RESTRICTIONS ON WOMEN FLYING COMBAT MISSIONS IS EXPECTED TO BE ORDERED SOON BY DEFENSE SECRETARY ASPIN ERITREANS VOTED OVERWHELMINGLY IN FAVOR OF INDEPENDENCE FROM ETHIOPIA ACCORDING TO PROVISIONAL RESULTS FROM A THREEDAY REFERENDUM THAT ENDED SUNDAY THE VOTE RATIFIED A REBEL VICTORY IN ERITREA'S 30YEAR STRUGGLE FOR INDEPENDENCE ERITREA HAS PROMISED ETHIOPIA ACCESS TO THE RED SEA THROUGH THE PORTS OF ASSAB AND MASAWA A MEDICAL PANEL URGED THAT ALL NEWBORNS BE SCREENED FOR SICKLE CELL DISEASE AN INHERITED BLOOD DISORDER THAT IS MOST COMMON AMONG AFRICANAMERICANS BUT ALSO OCCURS IN OTHER GROUPS THE UNIVERSAL SCREENING RECOMMENDED BY THE FEDERALLY SPONSORED PANEL ALREADY IS PERFORMED IN 34 STATES WHILE TARGETED SCREENING IS PERFORMED IN OTHERS KUWAIT HAS CHARGED 17 IRAQIS WITH PLOTTING TO DESTABILIZE THE EMIRATE AND ONE SUSPECT CONFESSED HE PLANNED TO KILL BUSH DURING THE FORMER US LEADER'S VISIT EARLIER THIS MONTH KUWAIT'S DEFENSE CHIEF SAID ANGOLAN REBEL LEADER SAVIMBI HAS AGREED TO A CEASEFIRE TO HALT THE COUNTRY'S 18YEAROLD WAR IVORY COAST FOREIGN MINISTER ESSY SAID THE ANGOLAN GOVERNMENT REACTED WITH SKEPTICISM TO THE ANNOUNCEMENT 9304280021 930428 NYSE UTILITY INDEX CHANGES NEW YORK THE NEW YORK STOCK EXCHANGE SAID THE VALUE OF THE NYSE UTILITY INDEX WAS DOUBLED EFFECTIVE AT THE START OF TRADING YESTERDAY THE EXCHANGE SAID THE DOUBLING OF THE INDEX'S VALUE WILL FACILITATE THE TRADING OF OPTIONS AND FUTURES ON THE INDEX OPTIONS AND FUTURES ON THE UTILITY INDEX ARE EXPECTED TO BEGIN TRADING LATER THIS YEAR ALL OTHER ASPECTS OF THE INDEX'S CALCULATIONS WILL REMAIN UNCHANGED 9304280020 930428 BUSINESS BRIEF WASHINGTON POST CO PROFIT DOUBLED IN 1ST PERIOD BECAUSE OF ONETIME GAIN WASHINGTON POST CO REPORTED A DOUBLING OF FIRSTQUARTER EARNINGS LARGELY DUE TO A ONETIME GAIN FOR A CHANGE IN INCOMETAX ACCOUNTING THE PUBLISHING AND BROADCASTING COMPANY IN WASHINGTON REPORTED EARNINGS OF 401 MILLION OR 340 A SHARE COMPARED WITH 197 MILLION OR 166 A SHARE A YEAR EARLIER THE RECENT QUARTER INCLUDED A NEARLY 12 MILLION GAIN FOR THE ACCOUNTING CHANGE WITHOUT THE CREDIT THE COMPANY'S EARNINGS ROSE 45 BUT THE COMPANY SAID THAT GROWTH RATE WOULDN'T CONTINUE THROUGH THE YEAR OVERALL REVENUE ROSE 10 TO 3617 MILLION COMPARED WITH 3291 MILLION A YEAR EARLIER OPERATING PROFIT ROSE 32 TO 498 MILLION FROM 378 MILLION THE NEWSPAPER UNIT'S REVENUE INCREASED 10 WITH ADVERTISING LINAGE UP 34 AT THE FLAGSHIP WASHINGTON POST DAILY CIRCULATION ROSE 1 BUT SUNDAY CIRCULATION FELL 1 MEANWHILE REVENUE ROSE 65 AT THE BROADCAST DIVISION AND 5 AT NEWSWEEK MAGAZINE THE CABLE DIVISION POSTED AN 11 INCREASE IN REVENUE 9304280019 930428 INTERNATIONAL BRIEF SANDOZ AG FIRSTQUARTER SALES INCREASED AND FIRM SEES A GOOD YEAR' SWISS PHARMACEUTICAL COMPANY SANDOZ AG WILL HAVE ANOTHER GOOD YEAR IN 1993 DESPITE DIFFICULT BUSINESS CONDITIONS MARC MORET CHAIRMAN SAID IN ANNOUNCING A ROUGHLY 25 RISE IN FIRSTQUARTER SALES GIVEN THE DEPRESSED STATE OF THE EUROPEAN ECONOMIES 1993 WILL SEVERELY TEST MANAGEMENT SKILLS IN INDUSTRY MR MORET SAID NEVERTHELESS HE ADDED SANDOZ LOOKS FORWARD TO THIS CHALLENGE WITH CONFIDENCE AND DETERMINATION IN THE FIRST QUARTER SANDOZ'S GROUP SALES ROSE TO 421 BILLION SWISS FRANCS 297 BILLION FROM A RECORD 411 BILLION FRANCS A YEAR EARLIER THE COMPANY SAID THAT IN TERMS OF LOCAL CURRENCIES BEFORE TRANSLATION INTO SWISS FRANCS SALES ROSE 3 SPEAKING AT THE COMPANY'S ANNUAL NEWS CONFERENCE ROLF W SCHWEIZER EXECUTIVE VICE PRESIDENT SAID SALES SURPASSED EXPECTATIONS SANDOZ DOESN'T RELEASE QUARTERLY EARNINGS FIGURES 9304280018 930420 MANAGING BY JOAN E RIGDON TO SHRINK COMPANIES TEMPORARY OUTSIDERS ARE MORE EFFECTIVE THAN INSIDE EXECUTIVES ACCORDING TO PEOPLE WHO HAVE GONE THROUGH THE PROCESS SOME COMPANIES DON'T HAVE THE TALENT TO DOWNSIZE ON THEIR OWN SO THEY REACH OUTSIDE THIS APPROACH HAS CERTAIN BENEFITS THE NEWCOMER PROBABLY WON'T BE SWAYED BY FRIENDSHIPS OFFICE POLITICS OR SENTIMENT PHILIP JACOBY WHO SIGNED ON FOR A SIXMONTH DOWNSIZING STINT AT JOSEPH & FEISS A RETAIL UNIT OF CLOTHIER HUGO BOSS AG SAYS BEING A STRANGER HELPED HIM CLOSE 39 OPERATIONS AND LIQUIDATE 35 MILLION OF INVENTORY BEFORE HE LEFT LAST MONTH HE DIDN'T HAVE ANY EMOTIONAL INVESTMENT IN THE BUSINESS AND I WASN'T TRYING TO COVER UP MISTAKES THAT ANYONE MADE MR JACOBY SAYS IMAGE BANK A STOCKPHOTOGRAPHY BUSINESS TURNED TO AN OUTSIDER IN 1991 TO SPRUCE ITSELF UP BEFORE BEING ACQUIRED BY EASTMAN KODAK ITS CURRENT PARENT SHELDON PECKAR IMAGE BANK'S FORMER CHIEF FINANCIAL OFFICER SAYS THE TEMPORARY OUTSIDER HE HIRED TO REVIEW JOB DESCRIPTIONS AND SALARIES JUST LOOKED AT THE RAW INFORMATION WHEN MAKING STAFFING RECOMMENDATIONS TO MANAGEMENT WITHOUT FEAR OR FAVOR THOUGH THE PRACTICE IS EFFECTIVE MAKING A CAREER OF IT MAY BE IMPRACTICAL MORGAN & BANKS AN ARLINGTON VA SEARCH FIRM THAT SPECIALIZES IN INTERIM EXECUTIVES SAYS FEWER THAN 10 OF THE INTERIM EXECUTIVES IT PLACES ARE HIRED TO FIRE PRORESOURCE CLEVELAND ANOTHER INTERIM EXECUTIVE RECRUITING FIRM SAYS THERE'S A BIG DIFFERENCE BETWEEN FORMULATING AND IMPLEMENTING DOWNSIZING PLANS COMPANIES OFTEN NEED HELP WITH THE LATTER BUT IT'S EXTREMELY RARE FOR THEM TO HIRE TEMPORARY OUTSIDERS TO DO PLANNING SAYS MARILOU R MYRICK PRESIDENT COMPANIES DON'T HAND OVER LONGTERM STRATEGIC DECISIONS TO AN OUTSIDER UNLESS THEY'RE ABOUT TO GO UNDER SHE ADDS COMPANIES ARE NEARLY FOUR TIMES MORE LIKELY TO REVERSE UNSUCCESSFUL DIVERSIFICATIONS IN THE YEAR A NEW CHIEF EXECUTIVE IS NAMED A NEW STUDY FINDS THERE'S ONLY A 36 CHANCE THAT A COMPANY WILL DIVEST AN UNSUCCESSFUL ACQUISITION OUTSIDE ITS CORE BUSINESS IN ANY GIVEN YEAR BUT THE FIGURE JUMPS TO 14 IN A YEAR WHEN A NEW CEO IS NAMED ACCORDING TO THE STUDY BY ASSISTANT PROFESSOR MICHAEL WEISBACH OF THE SIMON SCHOOL OF BUSINESS UNIVERSITY OF ROCHESTER THE CHANCES OF A SALE ARE EVEN HIGHER 17 IN THE CASE OF A CEO CHANGE WHEN THE ACQUISITION IS MORE THAN FOUR YEARS OLD MR WEISBACH WHO TRACKED 270 LARGE ACQUISITIONS FROM 1971 TO 1989 RATED AN ACQUISITION UNSUCCESSFUL IF IT SOLD FOR A LOSS OR IF ITS PERFORMANCE FELL SHORT OF COMPANY EXPECTATIONS AS REPORTED IN THE BUSINESS MEDIA HE CONSIDERED ALL ELSE SUCCESSFUL COMPANIES ARE ONLY HALF AS LIKELY AS AVERAGE TO SELL SUCCESSFUL ACQUISITIONS OUTSIDE THEIR CORE BUSINESS IN THE YEAR OF A CEO CHANGE THE STUDY SHOWS THE PROBABILITY OF SELLING SUCCESSFUL ACQUISITIONS AVERAGES 78 A YEAR BUT FALLS TO 38 IN A YEAR WHEN A NEW CEO IS NAMED SUCCESSFUL ACQUISITIONS MORE THAN FOUR YEARS OLD HAVE A 4 CHANCE OF BEING SOLD IN THE YEAR OF A CEO CHANGE COMPANIES ARE LOATH TO PART WITH ACQUISITIONS RELATED TO THEIR CORE BUSINESSES WHETHER OR NOT THEY ARE SUCCESSFUL THE STUDY INDICATES CEOS ARE USUALLY RELUCTANT TO SELL ACQUISITIONS BECAUSE THEIR STATUS AND PAYCHECK GENERALLY CORRESPOND TO THE COMPANY'S SIZE MR WEISBACH SAYS YOU DON'T WANT TO BE KNOWN AS THE CEO WHO SHRINKS THE COMPANY BAD NEWS FOR DISCHARGED MILITARY OFFICERS NOW THAT UNCLE SAM DOESN'T WANT YOU MOST COMPANIES DON'T EITHER DEMAND FOR OFFICERS HAS PLUNGED SINCE THE LATE '80S WHEN THERE WERE SO MANY REQUESTS WE COULDN'T STOP ANSWERING THE PHONE SAYS HASSAN SHARIFF A RECRUITER WITH JOHNSON GROUP NEW YORK COMPANIES NOW ARE MORE RELUCTANT TO HIRE SOMEONE WITH NO BUSINESS BACKGROUND ESPECIALLY WHEN SO MANY EXPERIENCED MANAGERS ARE LOOKING FOR WORK SOME RECRUITERS SAY MILITARY OFFICERS EXPECT TOO MUCH FOR WHAT THEY HAVE TO OFFER PLATOON LEADERS HOPE TO RUN FACTORIES AND COLONELS LUST AFTER THE CEO'S SEAT BUT THEIR DISCIPLINE AND MANAGEMENT SKILLS DON'T NECESSARILY TRANSFER WELL TO BUSINESS IF AN OFFICER IN THE NAVY COMMANDS SHIPS THAT DOESN'T MEAN HE CAN GO OUT AND RUN A FACTORY SAYS CRAIG BARTON A FORMER NAVY LIEUTENANT WHO IS NOW AN EXECUTIVE RECRUITER FOR LEON A FARLEY ASSOCIATES SAN FRANCISCO TONY WEISSGARBER WHO STARTED OFFICER PLACEMENT SPECIALISTS SAN ANTONIO FOR MILITARY PEOPLE SEEKING JOBS SAYS HE HAS 100 VETERANS IN HIS DATA BANK BUT HAS YET TO FIND A JOB FOR ANY OF THEM COMPANIES THAT ARE HIRING MILITARY WORKERS USUALLY LOOK FOR SPECIFIC KINDS OF PEOPLE EDWARD D JONES & CO A ST LOUIS SECURITIES FIRM SAYS IT HIRED ABOUT 300 VETERANS MAINLY PEOPLE IN THEIR 20S WITH COLLEGE DEGREES WHOM IT CONSIDERS LIKELY TO BE DISCIPLINED AND EAGER TO OPEN BROKERAGE OFFICES LAST YEAR AND PLANS TO HIRE ABOUT THE SAME NUMBER THIS YEAR TRANDES CORP A GOVERNMENT CONTRACTOR IN LANDHAM MD SAYS IT TURNS TO THE PENTAGON'S OPERATION TRANSITION OUTPLACEMENT SERVICES WHEN FILLING ENGINEERING POSITIONS ESPECIALLY FOR ITS SAN DIEGO OFFICE MANY COMPANIES HAVE VALUES STATEMENTS BUT HOW MANY ENFORCE THEM GEMINI CONSULTING MORRISTOWN NJ SAYS IT WILL IT JUST NAMED VICE PRESIDENT DAVID KEERY VALUES CHAMPION THROUGH TRAINING PROGRAMS AND ONEONONE COACHING HE'LL DEVOTE ALL HIS TIME TO HELPING GEMINI WORKERS MEET THE CODE TEXAS INSTRUMENTS MOTOROLA AND CHEVRON ARE AMONG COMPANIES THAT HAVE ADOPTED RANDOM UNIVERSAL DRUG TESTING IN ADDITION TO PREEMPLOYMENT TESTING I COULDN'T SEE DOING IT ANY OTHER WAY SAYS JERRY R JUNKINS PRESIDENT OF TEXAS INSTRUMENTS PREEMPLOYMENT TESTING ALONE EFFECTIVELY EXEMPTS PEOPLE WHO JOINED THE COMPANY BEFORE TESTING BEGAN 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 9304280017 930428 WHO'S NEWS STRYKER CORP STRYKER CORP KALAMAZOO MICH WILLIAM U PARFET 46 YEARS OLD WAS ELECTED A DIRECTOR OF THIS MANUFACTURER OF SURGICAL AND MEDICAL PRODUCTS MR PARFET IS VICE CHAIRMAN OF UPJOHN CO A MANUFACTURER OF PHARMACEUTICAL CHEMICAL AND AGRICULTURAL PRODUCTS 9304280016 930428 WESTERN PUBLISHING HAD 65 PROFIT DROP FOR FISCAL 4TH PERIOD NEW YORK WESTERN PUBLISHING GROUP INC REPORTED A 65 DROP IN FISCAL FOURTHQUARTER EARNINGS AND PREDICTED A PROBABLE OPERATING LOSS ON LOWER SALES FOR FISCAL 1994'S FIRST QUARTER THE NEWS BATTERED WESTERN PUBLISHING'S SHARES WHICH LOST ABOUT 16 OF THEIR VALUE YESTERDAY THE STOCK CLOSED AT 13375 DOWN 2625 IN NATIONAL OVERTHECOUNTER TRADING FOR THE FOURTH QUARTER ENDED JAN 30 WESTERN EARNED 11 MILLION OR FOUR CENTS A SHARE COMPARED WITH 31 MILLION OR 14 CENTS A SHARE THE YEAR EARLIER SALES INCREASED 15 TO 1774 MILLION FOR ALL OF FISCAL 1993 WESTERN POSTED EARNINGS OF 175 MILLION OR 80 CENTS A SHARE UP 28 FROM 137 MILLION OR 62 CENTS A SHARE THE YEAR BEFORE SALES GREW 18 TO 6522 MILLION WESTERN PRIMARILY INVOLVED IN CHILDREN'S BOOK PUBLISHING ATTRIBUTED ITS BEARISH FIRSTQUARTER OUTLOOK TO REDUCED CONSUMER SPENDING AND OVERLY CONSERVATIVE INVENTORY POSITIONS BY RETAILERS THE COMPANY SAID CONSUMER SALES WERE HURT BY INCREDIBLY HARSH WEATHER CONDITIONS IN FEBRUARY AND MARCH AND LOWER INCOMETAX REFUNDS IN 1993 THE COMPANY SAID ITS FIRST QUARTER WILL REFLECT A PROVISION FOR COSTS ASSOCIATED WITH THE EXPANSION OF THE BOOKS R US STOREWITHINASTORE PROGRAM AS WELL AS A 24 MILLION NONCASH LIABILITY FOR THE ADOPTION OF ACCOUNTING CHANGES FOR POSTRETIREMENT BENEFITS IT SAID THE FOURTHQUARTER EARNINGS DECLINE REFLECTED THE SLOW START TO SALES IN THE QUARTER VERSUS EXPENSES INCURRED FOR AN EXPANDED RETAIL MERCHANDISING PROGRAM THE COMPANY ADDED THAT ITS ADVERTISING SPECIALTY DIVISION ALSO WAS A DRAG ON PROFIT 9304280015 930428 LEISURE & ARTS ON SPORTS PUSHUP RECORD BROKEN AGAIN BY FREDERICK C KLEIN FONTANA CALIF LAST WEEKEND WAS AN EXCEPTIONALLY BUSY ONE IN SPORTS THE NATIONAL BASKETBALL ASSOCIATION WOUND UP ITS REGULAR SEASON WITH PLAYOFF SPOTS STILL ON THE LINE THE NATIONAL HOCKEY LEAGUE WAS WELL INTO ITS FIRST PLAYOFF ROUND AND THERE WAS A FULL SLATE OF BIGLEAGUE BASEBALL GAMES AND THE NATIONAL FOOTBALL LEAGUE BEGAN ITS ANNUAL COLLEGEPLAYER DRAFT MEANWHILE HERE IN THE ARID ACRES EAST OF LOS ANGELES CHARLES SERVIZIO A 42YEAROLD SCHOOLTEACHER FROM NEARBY VICTORVILLE DID 46001 PUSHUPS IN A 24HOUR PERIOD THAT ENDED AT 820 AM SUNDAY THAT SET A WORLD RECORD I CHOSE TO BE WITH SERVIZIO FOR A COUPLE REASONS ONE IS THAT SPORTS IS MORE THAN BIGNAME ATHLETES COMPETING FOR BIGBUCKS PRIZES BEFORE BIG CROWDS YOU CAN LEARN THIS ANY BALMY WEEKEND BY VISITING YOUR NEIGHBORHOOD PARK AND WATCHING YOUR NEIGHBORS BUSTING THEIR BUTTS ON THE SOFTBALL FIELD TENNIS COURTS OR TRACK YOU CAN JOIN THEM IF YOU WANT THEY'LL CONTINUE TO DO THIS WITH OR WITHOUT RECOGNITION IN THE FORM OF NEWSPAPER INK BUT I THINK IT'S NICE IF ONE OF THEM GETS SOME EVERY ONCE IN A WHILE ANOTHER IS THAT SERVIZIO'S MODE OF ATHLETIC EXPRESSION THE PUSHUP IS THE QUINTESSENTIAL EVERYMAN EXERCISE ANYONE CAN DO IT ANYTIME ANYWHERE IT TAKES TALENT GENIUS REALLY TO STRIKE A WELLPITCHED BASEBALL OR PLAY BASKETBALL WITH THE BRAWNY BALLET DANCERS OF THE NBA BUT IT TAKES MOSTLY PERSEVERANCE TO DO PUSHUPS THE US ARMY THAT QUINTESSENTIAL EVERYMAN ORGANIZATION RECOGNIZES THIS WHEN A SOLDIER MESSES UP AND HIS SERGEANT COMMANDS HIM TO GIMME 50 HE KNOWS IT'S PUSHUPS THAT ARE CALLED FOR GIVEN THE MANY BODY PARTS THE ACTIVITY INVOLVES BESIDES THE ARMS CHEST AND SHOULDERS THE PUSHUP ALSO EXERCISES THE STOMACH HIPS BACK AND LEGS SERVIZIO'S WEEKEND PERFORMANCE WAS AN ATHLETIC FEAT OF THE FIRST ORDER AND IF HIS RECORDSETTING TOTAL IS MINDBOGGLING IT BROKE THE FORMER GUINNESS BOOK MARK HELD BY JUNBER LEZHAVA OF THE FORMER SOVIET REPUBLIC OF GEORGIA BY 1860 SO WAS ITS METHOD OF ACHIEVEMENT POUNDING OUT 50 FULLEXTENSION PUSHUPS EVERY 30 OR SO SECONDS WITH 30SECOND RESTS BETWEEN SERVIZIO RACKED UP 25000 IN THE NINE HOURS ENDING AT ABOUT 5 PM SATURDAY FROM THERE HE REDUCED HIS SETS TO 45 AND THEN 40 AND ADDED EXTRA BREAKS OF UP TO 20 MINUTES AN HOUR HE PASSED THE OLD RECORD AT 345 AM SUNDAY TO CHEERS FROM HIS DOZEN SLEEPY WITNESSES AT FONTANA CITY HALL AND CONTINUED ONLY INFREQUENTLY THEREAFTER UNTIL THE 24 HOURS EXPIRED HE'D AIMED AT DOING 50000 AND SAID HE WOULD HAVE IF NOT FOR THE LARGE AND PAINFUL BLISTERS HE DEVELOPED ON THE HEELS OF BOTH HANDS THE BLISTERS DID ME IN HE SAID AFTERWARD BELIEVE IT OR NOT I FELT VERY LITTLE MUSCULAR DISCOMFORT IN VIEW OF SERVIZIO'S BACKGROUND AND PHYSIQUE HIS WHOLE ENDEAVOR STRAINS CREDULITY PUSHUP PROFICIENCY USUALLY IS THE PROVINCE OF THE YOUNG LIGHT AND AGILE BUT AT 5FOOT10 AND 165 POUNDS AND WITH A MIDDLE THAT'S A TRIFLE UH JIGGLY SERVIZIO ISN'T LIGHT AND 42 AIN'T YOUNG NOR IS HE ESPECIALLY ATHLETIC I WRESTLED IN HIGH SCHOOL BUT LOST EVERY MATCH HE SAID MY COACH SAID IF I DID PUSHUPS I'D GET STRONGER AND IMPROVE I KEPT LOSING BUT DISCOVERED I LIKED DOING PUSHUPS SERVIZIO CONTINUED WITH THE EXERCISE THROUGH COLLEGE AND INTO HIS PROFESSIONAL LIFE BUT DIDN'T DISCOVER ITS COMPETITIVE SIDE UNTIL 1988 WHEN TEACHING IN SASKATCHEWAN HE LEARNED THAT GUINNESS LISTED A PUSHUP RECORD IT WAS 34600 THEN AND HE TRIED TO BREAK IT BUT HAD TO QUIT AT 29000 I DIDN'T UNDERSTAND THE EFFORT IT TOOK HE EXPLAINED LIVING IN CALIFORNIA THREE YEARS LATER AND TEACHING AT A JUVENILE REFORMATORY IN SAN BERNARDINO HE TOOK ANOTHER SHOT THIS TIME HE THOUGHT HE'D SUCCEEDED WITH 40103 BUT THE GUINNESS PEOPLE TURNED IT DOWN ON GROUNDS HIS COUNTERS WEREN'T ALL FITNESS EXPERTS A REQUIREMENT HE WASN'T AWARE OF THE NEXT YEAR IN JANUARY HE DID 40396 UNDER PROPER AUSPICES AND IT WAS ACCEPTED HE UPPED THAT TO 43001 LAST NOVEMBER ONLY TO BE TOLD THAT THE GEORGIAN HAD DONE 44141 JUST PREVIOUSLY IRKED HE SET IMMEDIATELY UPON THE COURSE THAT LED TO HIS LATEST FEAT CHARLES DOES THE EXERCISE BECAUSE IT'S HIS WAY OF HANDLING STRESS AFTER WORK HE GOES OFF BY HIMSELF FOR A COUPLE OF HOURS DOES 5000 PUSHUPS AND COMES OUT REFRESHED SAID HIS WIFE JUDY WHO IS STUDYING TO TEACH HANDICAPPED CHILDREN THE COUPLE HAVE A SON 16 AND A DAUGHTER 12 HE GOES FOR RECORDS I GUESS BECAUSE HE'S A PERSON WHO BELIEVES IN SEEING THINGS TO THEIR LOGICAL CONCLUSIONS SERVIZIO LIKES HIS RECORD ATTEMPTS TO BENEFIT OTHERS AND LAST WEEKEND'S FORUM WAS A COMMUNITYCABLE TELETHON TO RAISE MONEY FOR EXTRACURRICULAR ACTIVITIES AT FONTANA HIGH SCHOOL THE TOWN'S CITY HALL WAS THE SITE BECAUSE IT'S RIGGED FOR TV SERVIZIO SET UP HIS CARPETED 8FOOTBY4FOOT PLYWOOD PLATFORM IN THE FOYER IN FRONT OF CITYCOUNCIL CHAMBERS LISTENING TO INSPIRATIONAL MUSIC ON HIS BOOM BOX ONE TUNE WAS TITLED KEEP PUSHIN' HE DID HIS PUSHUPS AS SPANGLECOSTUMED LITTLE GIRL DANCERS AND ADULT LIPSYNCHERS IN FORMAL WEAR TROOPED PAST TO DO THEIR PERFORMING BITS THE DRAMA CENTERED ON THE BLISTERS THEY BEGAN TO DEVELOP AROUND 4 PM AND BY 8 WERE CAUSING SERIOUS DIFFICULTIES DESPITE APPLICATIONS OF A SKIN TOUGHENER AND ICE TO HOLD DOWN SWELLING BY 10 SERVIZIO WAS CONTEMPLATING QUITTING AND MIGHT HAVE IF AN ONLOOKER HADN'T RECOMMENDED THAT HE APPLY EGG WHITES HE DID AND MIRACULOUSLY MUCH OF THE DISCOMFORT DISAPPEARED ALTHOUGH CONCERN OVER THE WOUNDS AND WEARINESS HE CHARACTERIZED AS MOSTLY MENTAL KEPT HIM FROM 50000 SERVIZIO STAYED UNTIL THE 9 AM END OF THE TELETHON RESPONDING TO QUESTIONS FROM HIGHSCHOOL INTERVIEWERS HE SAID SLEEP WAS HIS FIRST PRIORITY FOLLOWED BY FOOD DURING HIS TRIAL HE CONSUMED ONLY GATORADE SPIKED WITH A FOOD SUPPLEMENT HE PROMISED TO TAKE HIS BLISTERS TO A DOCTOR AND HE SAID THIS PROBABLY WOULD BE HIS LAST PUSHUPS PUSH BUT HE ADDED I ALSO DO SITUPS PRETTY WELL MAYBE I'LL TRY THAT RECORD SOMETIME 9304280014 930428 INTERNATIONAL TEN BANKS INTEND TO PROVIDE LOANS FOR CANARY WHARF BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON BANKS FINANCING LONDON'S TROUBLED CANARY WHARF OFFICE COMPLEX AGREED IN PRINCIPLE TO PUT UP AN EXTRA 500 MILLION 792 MILLION IN CREDIT TO GET THE PROJECT BACK INTO OPERATION UNDER THEIR OWNERSHIP ALL BUT ONE OF THE 11 BANKS INVOLVED IN EXISTING LOANS TOTALING ABOUT 600 MILLION HAVE AGREED TO PARTICIPATE BANKERS FAMILIAR WITH THE NEGOTIATIONS SAID ONLY NATIONAL BANK OF CANADA WON'T PROVIDE FURTHER LOANS BECAUSE OF ITS EXTENSIVE EXPOSURE TO OLYMPIA & YORK DEVELOPMENTS LTD O&Y THE CANADIAN DEVELOPER OF CANARY WHARF COLLAPSED LAST YEAR BANKS THAT HAVE AGREED TO PRESS AHEAD WITH THE RESCUE OPERATION HOPE THAT BY GETTING THE PROJECT OUT OF COURTAPPOINTED ADMINISTRATION THEY WILL BE ABLE TO OPERATE IT AS A VIABLE COMMERCIAL ENTITY WITH BRITAIN'S ECONOMY ON THE MEND AND DEMAND FOR OFFICE SPACE LIKELY TO REVIVE CANARY WHARF HAS A STRONG FUTURE THEY SAY IT'S JUST A QUESTION OF STAYING POWER SAID AN OFFICER AT CREDIT SUISSE A PARTICIPATING BANK HOPES FOR REFLOATING CANARY WHARF WERE BOOSTED LAST WEEK WHEN THE EUROPEAN INVESTMENT BANK AGREED TO PROVIDE 98 MILLION TO FINANCE AN EXTENSION OF THE JUBILEE LINE SUBWAY LINKING CANARY WHARF TO CENTRAL LONDON OF THE EXTRA MONEY TO BE PROVIDED BY THE 10 BANKS THE SOURCES SAID ABOUT 200 MILLION WOULD GO TOWARD PAYING OFF THE PROJECT'S UNSECURED CREDITORS OFFERING INCENTIVES TO ATTRACT NEW TENANTS AND CONTINUING BUILDING WORK THE REMAINDER WOULD COVER A SHARE OF THE COST OF BUILDING THE SUBWAY EXTENSION ASIDE FROM NATIONAL BANK OF CANADA AND CREDIT SUISSE THE OTHER LENDERS ARE CANADIAN IMPERIAL BANK OF COMMERCE BARCLAYS PLC COMMERZBANK AG CREDIT LYONNAIS LLOYDS BANK PLC CHEMICAL BANKING CORP ROYAL BANK OF CANADA CITICORP AND KANSALLISOSAKEPANKKI CREDIT SUISSE IS A UNIT OF CS HOLDING OF ZURICH 9304280013 930428 THE POSTSTIMULUS CHALLENGE BY PAUL W MCCRAKEN THAT THE ADMINISTRATION'S STIMULUS PROGRAM HAS BECOME A CASUALTY OF THE POLITICAL PROCESS IS NO LOSS FOR THE ECONOMY AND PROBABLY FORTUNATE FOR THE PRESIDENT BOTH IN FACT MAY TURN OUT TO BE BENEFICIARIES OF THE PROGRAM'S DEMISE AN ILLUSTRATION OF HOW THE TURGID PROCESSES OF CONGRESS SOMETIMES SERVE THE GENERAL WELFARE THIS RESULT DOES NOT MEAN THAT THE ECONOMY HAS BEEN DOING QUITE WELL ON ITS OWN INDEED THE US ECONOMIC PERFORMANCE OF RECENT YEARS HAS CLEARLY BEEN OUT OF CHARACTER WITH WHAT OUR HISTORY WOULD LEAD US TO EXPECT IN THE TWO YEARS SINCE THE LOW POINT OF THE 199091 RECESSION EMPLOYMENT HAS INCREASED ONLY 15 THIS IN AN ECONOMY WHOSE BASIC LABOR FORCE IS ENLARGING AT ALMOST THAT RATE EACH YEAR NOT SURPRISINGLY UNEMPLOYMENT HAS RISEN FURTHER SINCE THE TRUE RATE OF UNEMPLOYMENT TODAY IS CLOSE TO 9 WE SHALL NEED AN INCREASE IN JOB OPPORTUNITIES OF CLOSE TO 2 A YEAR IF FOUR YEARS FROM NOW THE ECONOMY IS TO REACH FULL EMPLOYMENT THAT IS A 55 TO 6 UNEMPLOYMENT RATE CLEARLY WE ARE NOT NOW ON THAT PATH BY CONTRAST DURING THE FIRST TWO YEARS OF THE LAST RECOVERY IN THE EARLY 1980S EMPLOYMENT INCREASED MORE THAN 6 AND THE UNEMPLOYMENT RATE DROPPED SHARPLY AN INADEQUATE RATE OF EXPANSION IN EMPLOYMENT OPPORTUNITIES IS NOT JUST IN THE NATURE OF THINGS IT IS IN FACT RARE FOR THE MODERN US ECONOMY FOR THE QUARTERCENTURY FROM 1948 TO 1973 THE AVERAGE UNEMPLOYMENT RATE WAS 46 ABOUT THE SAME AS FOR THE FIRST THREE DECADES OF THE CENTURY 48 THE UNEMPLOYMENT RATES OF RECENT YEARS ARE UNUSUAL THE PRESIDENT IS THEREFORE RIGHT TO EMPHASIZE THE NEED FOR A MORE VIGOROUS RATE OF ECONOMIC EXPANSION THAT MUCH IS CLEAR UNFORTUNATELY HIS ECONOMIC STIMULUS PACKAGE WOULD HAVE HAD A TRIVIAL EFFECT RELATIVE TO THE ECONOMIC PROBLEMS WE HAVE AND IT WOULD HAVE MADE BASIC BUDGET THERAPY MORE DIFFICULT IF EACH DOLLAR OF ADDED PUBLIC SPENDING GENERATES AN ADDED DOLLAR OF PRIVATE SPENDING THE CONVENTIONAL ASSUMPTION AND IF MR CLINTON'S PROGRAM WAS TO ADD 12 TO 16 BILLION A YEAR IN GOVERNMENT SPENDING THE ARITHMETIC WOULD SUGGEST A TOTAL ADDITION TO GROSS DOMESTIC PRODUCT OF ROUGHLY 30 BILLION THIS IS A LARGE ECONOMY GDP IS NOW RUNNING AT AN ANNUAL RATE OF 6 TRILLION SO MR CLINTON'S PROGRAM WOULD HAVE INCREASED GDP BY ONLY 05 NORMALLY THE REDUCTION IN UNEMPLOYMENT COULD BE EXPECTED TO BE LESS THAN HALF THE PERCENTAGE GAIN IN OUTPUT SO WE MIGHT EXPECT THE PROGRAM TO HAVE REDUCED THE UNEMPLOYMENT RATE BY SOMETHING LIKE A FIFTH OF A PERCENTAGE POINT AS IT HAPPENS THIS IS ABOUT THE SAMPLING ERROR OF UNEMPLOYMENT ESTIMATES SO THE IMPROVEMENT WOULD HAVE BEEN SO SMALL AS TO HAVE BEEN OBSCURED BY THE NOISE IN THE STATISTICS WHAT WE DO KNOW IS THAT A PROGRAM OF STEPPEDUP SPENDING WOULD HAVE ENLARGED THE DEFICIT FURTHER AND IT WOULD NOT HAVE BEEN APT TO GET PHASED OUT EVEN WHEN THE ECONOMY RETURNED TO FULL EMPLOYMENT BECAUSE OF THE VESTED INTERESTS IN ANY PROGRAM'S CONTINUATION THIS HAS BEEN THE HISTORY OF TRYING TO USE THE FISCAL OPERATIONS OF GOVERNMENT TO COUNTER SWINGS IN THE ECONOMY SO THE PRESIDENT HAS BEEN SAVED FROM HAVING TO EXPLAIN LATER WHY HIS ECONOMIC STIMULUS PROGRAM DID SO LITTLE OTHER THAN MAKE A BAD BUDGET SITUATION WORSE YET THE US ECONOMY NEEDS A STRATEGY OF ECONOMIC POLICY THAT WILL ENABLE IT TO DELIVER BOTH FULL EMPLOYMENT AND STEADY GAINS IN REAL INCOME IT NEEDS IN SHORT TO REGAIN THE CAPACITY TO DO AGAIN WHAT IT HAS DONE SO WELL FOR MOST OF ITS HISTORY THIS IS NOW THE PRESIDENT'S OPPORTUNITY FOR LEADERSHIP FIRST THE PROBLEM IS CLEARLY INTERNATIONAL ALL THE MAJOR ECONOMIES ARE BOGGED DOWN WITH EXCESSIVE UNEMPLOYMENT AND INADEQUATE DEMAND FOR OUTPUT THERE IS UNDERSTANDABLE CONCERN THAT ANY ONE GOVERNMENT THAT STEPS OUT AHEAD OF THE OTHERS WOULD COURT THE RISK OF BALANCEOFPAYMENTS PROBLEMS THIS IS NOT JUST A FRIVOLOUS CONCERN YET IT WILL NOT DO FOR THE WORLD ECONOMY TO REMAIN MIRED IN IMMOBILISME WHERE NO ONE WILL MOVE UNTIL EVERYONE ELSE IS MOVING SOMEONE HAS TO TAKE SOME LEADERSHIP IN A MORE COORDINATED EFFORT TO GET THINGS GOING JAPAN HAS THE ECONOMIC STRENGTH AND ITS GOVERNMENT HAS SHAPED A STRONG DOMESTIC PROGRAM BUT IT CANNOT PROVIDE INTERNATIONAL POLITICAL LEADERSHIP NOR CAN ANY EUROPEAN GOVERNMENT THE US GOVERNMENT CAN BUT THERE IS MUCH THAT IT MUST DO FIRST ANY SERIOUS EFFORT TO DEPLOY POLICIES FOR A MORE PROSPEROUS WORLD ECONOMY MUST INCLUDE A CONSIDERATION OF MONETARY POLICY THIS IS OF COURSE A SENSITIVE ISSUE IN GENERAL ECONOMIC PERFORMANCE IS BETTER IF THE CENTRAL BANK OPERATES WITH SUBSTANTIAL INDEPENDENCE YET SOME OF OUR MAJOR ECONOMIC TRAUMAS TRACE THEIR ORIGIN TO MASSIVE MISTAKES OF MONETARY POLICY EG IN 1931 WHEN A SEVERELY TIGHTENING MONETARY POLICY CONVERTED A TWOYEAR RECESSION INTO A FOURYEAR GREAT DEPRESSION WHEN SUCH MISTAKES OCCUR THE PERTINENT INSTITUTIONS OF GOVERNMENT HAVE AN OBLIGATION TO REVIEW THE MATTER THEY DID AFTER 193133 A REVIEW SHOULD HAVE OCCURRED IN 1980 WHEN MONETARY POLICIES BROUGHT THE ANNUAL INFLATION RATE TO 18 THE CURRENT INABILITY OF THE ECONOMY TWO YEARS AFTER THE LOW POINT OF A SHALLOW RECESSION TO GET ITSELF GOING AGAIN PROBABLY HAS SOMETHING TO DO WITH MONETARY POLICIES THAT HAVE LED TO A PERSISTENTLY SHRINKING MONETARY STOCK IN REAL TERMS TO REPEAT THIS WARRANTS A FUNDAMENTAL REVIEW WE ALSO NEED POLICIES THAT RECOGNIZE THE NEED FOR THE ECONOMY TO RECOVER ITS WEAKENED CAPABILITY TO DELIVER THE KIND OF SUSTAINED GAINS IN PRODUCTIVITY THAT WOULD DOUBLE REAL INCOME EVERY GENERATION FROM 1948 TO 1973 OUTPUT AND THEREFORE REAL INCOME PER PERSON EMPLOYED IMPROVED AT A 23 ANNUAL RATETHUS DOUBLING IN ABOUT 30 YEARS SINCE 1973 THE PACE HAS BEEN WELL BELOW 1 THE MAJOR CASUALTIES OF THIS CHANGE ARE THE MASS OF INCOME EARNERS NOT THE AFFLUENT INDEED OUTPUT DECLINE HAS CONTRIBUTED TO THE SPREAD BETWEEN THE TOP INCOME EARNERS AND THE REST OF US YET THE PROGRAM MR CLINTON HAS PUT FORWARD WILL EXACERBATE OUR ECONOMIC ARTHRITIS HIGHER TAXES ON CORPORATE INCOME AND OCCASIONAL FITS OF BUSINESSBASHING WILL ADVERSELY AFFECT CAPITAL BUDGETS YET ONE SOURCE OF OUR REDUCED ABILITY TO IMPROVE PRODUCTIVITY AND REAL INCOME HAS BEEN THE SLOWER GAINS IN CAPITAL INVESTED PER WORKER MOREOVER WHEN HIGHLY CREATIVE PEOPLE DEVOTE THEIR TIME TO FIGURING TAX ANGLES THEY ARE NOT CREATING NEW AND BETTER PRODUCTS OR NEW BUSINESSES OR NEW JOBS THE PRESIDENT SEEMS TO HAVE ACCOMPLISHED THE REMARKABLE FEAT OF SELLING THE CITIZENRY ON THE NEED FOR HIGHER TAXES IN ORDER TO REDUCE THE DEFICIT HE FACES A READMYLIPS PROBLEM HOWEVER IF SAY BY 1996 IT TURNS OUT THAT INCREASED SPENDING HAS SWALLOWED UP THE INCREASED REVENUE FROM HIGHER TAXES LEAVING US STILL WITH AN OUTSIZED DEFICIT THE SUCCESS OF ECONOMIC POLICY THEREFORE WILL DEPEND CRITICALLY ON WHETHER THERE IS REAL AND EFFECTIVE DISCIPLINING OF FEDERAL SPENDING NEXT YEAR IS ANOTHER ELECTION THE YEAR FOLLOWING IS THE PROLOGUE TO THE NEXT QUADRENNIAL YEAR AND THE YEAR AFTER THAT IS 1996 NOW IS THE TIME TO PUT THOSE STRONGER DISCIPLINES IN PLACE THERE IS NO SHORTAGE OF IDEAS A LINEITEM VETO A BALANCEDBUDGET AMENDMENT PERHAPS PERFORMANCE PAY BY WHICH SALARIES AT BOTH ENDS OF PENNSYLVANIA AVENUE ARE ADJUSTED DOWN IF THE DEFICIT STAYS UP A MAJOR STEP FORWARD WOULD BE ADOPTING A BINDING SPENDING TOTAL WHICH WOULD HAVE THE EFFECT OF LIMITING THE GROWTH OF INDIVIDUAL PROGRAMS IN ANY CASE CITIZENS ARE ENTITLED TO REQUIRE A DEMONSTRATION OF GOVERNMENT'S GOOD FAITH ON SPENDING CONTROL AS A CONDITION FOR HAVING TO ACCEPT REDUCTIONS IN THEIR OWN AFTERTAX INCOMES MR MCCRACKEN A FORMER CHAIRMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS IS A UNIVERSITY OF MICHIGAN PROFESSOR EMERITUS 9304280012 930428 MASSACHUSETTS CONDO DEVELOPER SENTENCED TO 5YEAR JAIL TERM BOSTON WILLIAM LILLY A MASSACHUSETTS CONDOMINIUM DEVELOPER WHO PLEADED GUILTY IN FEBRUARY TO CHARGES RELATED TO TWO FRAUDULENT REAL ESTATE SCHEMES WAS SENTENCED TO FIVE YEARS IN PRISON BY A US DISTRICT COURT JUDGE HERE MR LILLY PLEADED GUILTY TO MAKING FALSE STATEMENTS TO FEDERALLY INSURED FINANCIAL INSTITUTIONS CONSPIRACY AND WIRE FRAUD THE GOVERNMENT SAID THAT MR LILLY OF MARBLEHEAD MASS AND ASSOCIATES RECRUITED INVESTORS TO BUY HOUSING UNITS AND IN ORDER TO QUALIFY INVESTORS FOR FINANCING SUBMITTED LOAN APPLICATIONS TO BAYBANKS INC AND THE NOWDEFUNCT COMFED SAVINGS BANK THAT CONTAINED FALSE INFORMATION REGARDING THE INVESTORS' INCOME AND ASSETS WHEN THE NEW ENGLAND REAL ESTATE MARKET DECLINED DURING 1989 AND 1990 INVESTORS WHO HAD BOUGHT UNITS FROM MR LILLY BEGAN DEFAULTING ON THEIR MORTGAGES AND WERE FORECLOSED UPON BY BAYBANKS AND COMFED WHO TOGETHER SUFFERED LOSSES OF MORE THAN 2 MILLION ON THE 26 MILLION IN LOANS MADE TO THE BUYERS MR LILLY IS CURRENTLY SERVING A FIVEYEAR SENTENCE AS A RESULT OF HIS 1991 CONVICTION ON BANK FRAUD CHARGES IN ANOTHER CASE THE SENTENCE IMPOSED YESTERDAY WILL RUN CONCURRENTLY WITH THE REMAINDER OF THE FIRST SENTENCE SEPARATELY A REVERE MASS REAL ESTATE DEVELOPER LOUIS R PAGLIUCA PLEADED GUILTY IN FEDERAL COURT HERE TO MAKING FALSE STATEMENTS TO FEDERALLY INSURED FINANCIAL INSTITUTIONS THE US ATTORNEY'S OFFICE SAID THE FALSE STATEMENTS WERE MADE IN CONNECTION WITH RESIDENTIAL LOAN APPLICATIONS TO INDIVIDUALS WHO WERE PURCHASING CONDOMINIUMS IN MR PAGLIUCA'S DEVELOPMENT IN REVERE THE GOVERNMENT SAID MR PAGLIUCA SOLD THE CONDOMINIUM UNITS FOR 150000 EACH BUT SIGNED PURCHASE AND SALE AGREEMENTS AND OTHER LOAN CLOSING DOCUMENTS THAT SHOWED PURCHASE PRICES OF MORE THAN 200000 A UNIT THE LENDING DOCUMENTS SHOWED THAT THE INDIVIDUAL BUYERS HAD MADE DOWNPAYMENTS OF ABOUT 50000 FOR EACH CONDOMINIUM BUT NO DOWNPAYMENTS WERE MADE ACCORDING TO THE US ATTORNEY'S OFFICE MR PAGLIUCA FACES UP TO TWO YEARS IN PRISON ON EACH COUNT AND A FINE OF UP TO 250000 ON EACH OF THE TWO COUNTS 9304280011 930428 LAW LEGAL BEAT ARBITRATOR FINDS ROLE DWINDLING AS RIVALS GROW BY ELLEN JOAN POLLOCK STAFF REPORTER OF THE WALL STREET JOURNAL THE AMERICAN ARBITRATION ASSOCIATION THE DOMINANT FORCE IN DISPUTE RESOLUTION FOR MORE THAN 60 YEARS IS EXPERIENCING THE WORST IDENTITY CRISIS IN ITS HISTORY THE NONPROFIT AAA'S LEADERSHIP ROLE IS BEING CHALLENGED BY AN EXPLOSION OF PRIVATE FIRMS THAT OFFER A VARIETY OF OPTIONS FOR RESOLVING DISPUTES OUT OF COURT MORE SIGNIFICANTLY THERE ARE STRONG SIGNS THAT BINDING ARBITRATION IS BEING SUPPLANTED BY MORE FLEXIBLE NONBINDING MEDIATION AS BUSINESSES' FAVORITE ALTERNATIVE TO LITIGATION HIRED TO LEAD THE AAA INTO THE NEXT CENTURY FORMER TRANS WORLD AIRLINES GENERAL COUNSEL MARK BUCKSTEIN STUCK AROUND ONLY NINE MONTHS BEFORE ABRUPTLY RESIGNING EARLIER THIS MONTH HE CITED ONLY PHILOSOPHICAL DIFFERENCES BUT LAWYERS FAMILIAR WITH HIS DEPARTURE SAID HE WAS FRUSTRATED WITH THE AAA BOARD'S HESITANCY TO COMPETE AGGRESSIVELY WITH THE YOUNG MEDIATION AND ARBITRATION UPSTARTS AT ONE TIME AAA WAS THE UNDISPUTED INNOVATOR ITS PREDECESSOR ORGANIZATIONS WERE LAUNCHED IN THE 1920S IN RESPONSE TO COMPLAINTS BY LAWYERS AND BUSINESS LEADERS INCLUDING BANKER JULES S BACHE AND SEARS ROEBUCK & CO ONETIME CHAIRMAN JULIUS ROSENWALD ABOUT COURT DELAYS AND ESCALATING LITIGATION COSTS BUSINESS EXECUTIVES TODAY HAVE REMARKABLY SIMILAR CONCERNS ABOUT GOING TO COURT BUT INCREASINGLY THEY ALSO COMPLAIN ABOUT ARBITRATION SAYING THAT IT CAN BE AS EXPENSIVE AS LITIGATION BECAUSE IT IS LADEN WITH RULES AND TENDS TO BE TIME CONSUMING MEDIATION ON THE OTHER HAND ENCOURAGES SETTLEMENT AND IS MUCH QUICKER THE AAA OFFERS MEDIATION BUT ONLY AS A SIDELINE TO ARBITRATION OF THE MORE THAN 60000 CASES FILED WITH THE AAA'S 36 OFFICES LAST YEAR ONLY ABOUT 775 WERE MEDIATION CASES AND MANY OF ITS ARBITRATION CUSTOMERS ARE NOT EVEN AWARE THAT THE AAA OFFERS MEDIATION SERVICES I DON'T THINK YOU CAN BE A DISPUTERESOLUTION PROVIDER IF YOU DON'T PROVIDE COMPREHENSIVE MEDIATION SERVICES SAYS JACK TROTTER CHAIRMAN OF FORPROFIT JUDICIAL ARBITRATION & MEDIATION SERVICES INC THE AAA'S BIGGEST COMPETITOR THEY MAY NOT DO IT NOW BUT IF THEY WANT TO SURVIVE THEY'LL HAVE TO DO IT BUT CHANGING THE FOCUS OF A NONPROFIT ORGANIZATION CAN BE DIFFICULT NOTES MR TROTTER A FORMER CALIFORNIA STATE COURT JUDGE IT'S LIKE TURNING A BATTLESHIP IT TAKES A LITTLE WHILE HE SAYS CONSTRUCTION DISPUTES ARE A GOOD MEASURE OF THE PRESSURE ON THE AAA THE INDUSTRY HAS LONGSTANDING TIES TO THE AAA AND OFTEN INSERTS CLAUSES IN CONTRACTS MANDATING THE USE OF AAA TO RESOLVE DISPUTES NEVERTHELESS THE NUMBER OF CONSTRUCTION DISPUTES THE AAA HANDLED DROPPED TO 4387 LAST YEAR FROM 5189 IN 1991 MEANWHILE COMPETITOR JAMS SAW A 15 TO 20 INCREASE IN CONSTRUCTION CASES IN ITS LAST FISCAL YEAR WHICH ENDED IN MARCH JAMS NOW HANDLES MORE THAN 600 CONSTRUCTION CASES A YEAR ALL OF THEM MEDIATIONS ROBERT A RUBIN A CONSTRUCTION LAWYER WITH THE NEW YORK LAW FIRM POSTNER & RUBIN SAYS THAT HE HAD NEVER HANDLED A CONSTRUCTION MEDIATION UNTIL JUST A FEW YEARS AGO EVERY CASE THAT I'VE HAD IN THE LAST TWO YEARS HAS BEEN RESOLVED BY MEDIATION HE SAYS IT IS LIKE A REVOLUTION MR RUBIN WHO CALLS HIMSELF A MEMBER OF THE LOYAL OPPOSITION TO THE AAA SAYS THE ORGANIZATION IS CERTAINLY PUSHING MEDIATION NOW BUT THAT THE PRIVATE PROVIDERS HAVE BEAT THEM TO THE PUNCH MORTON DENLOW A CHICAGO LITIGATOR AT DARDICK & DENLOW AND SOMETIMEAAA ARBITRATOR SAYS HE REMOVED A CASE FROM THE AAA SEVERAL YEARS AGO WHEN A DISPUTE OVER THE BUILDING OF A 125UNIT CONDOMINIUM DRAGGED ON FOR MORE THAN A YEAR AT ONE POINT WHEN THE NEXT SCHEDULED HEARING WAS A MONTH AWAY MR DENLOW CONVINCED THE PARTIES TO TAKE THE CASE TO ENDISPUTE INC ANOTHER DISPUTE RESOLUTION FIRM FOR MEDIATION THE CASE WAS RESOLVED IN ABOUT A DAY HE RECALLS HE ESTIMATES THAT THE PARTIES HAD SPENT ABOUT 100000 IN ARBITRATION AT ENDISPUTE THEY SPENT LESS THAN 3000 AAA PRESIDENT ROBERT COULSON RESPONDS THAT MR DENLOW COULD HAVE GOTTEN MEDIATION HELP FROM THE AAA IF THAT'S WHAT THE PARTIES HAD WANTED HE ADDS THAT AAA STAFFERS NOW ENCOURAGE PARTIES THAT COME FOR ARBITRATION TO TRY MEDIATION AND THAT THE ORGANIZATION HAS STEPPED UP ITS EFFORTS TO TRAIN MEDIATORS AND EDUCATE THE PUBLIC ABOUT MEDIATION MR COULSON ADDS THAT THE MISSION OF THE AAA IS MORE COMPLICATED THAN THAT OF THE MEDIATION BUSINESSES BECAUSE IT SEEKS TO EDUCATE THE PUBLIC ABOUT LITIGATION ALTERNATIVES AS WELL AS TO PROVIDE SERVICES WE'VE GOT TO COMPETE BUT WE ALSO HAVE TO COOPERATE HE SAYS I THINK OF LITIGATION ALTERNATIVES AS A MOVEMENT I DON'T THINK OF IT AS A BUSINESS NOW HOWEVER THE AAA MAY BE BEGINNING TO LOSE CREDIBILITY EVEN IN ITS CORE BUSINESSARBITRATION MR RUBIN THE NEW YORK CONSTRUCTION LITIGATOR SAYS THE AAA HAS FALLEN DOWN ON THE JOB IN EFFICIENTLY ADMINISTRATING CASES TRAINING ARBITRATORS AND EVEN MAINTAINING THE LISTS OF ARBITRATORS DISPUTING PARTIES CAN CHOOSE FROM I WOULD GET DEAD PEOPLE ON MY LISTS HE GRIPES MR COULSON DEFENDS THE ORGANIZATION'S TRAINING AND NOTES THAT THE STAFF HAS MADE EFFORTS TO REVIEW AND CUT DOWN THE SIZE OF THE ARBITRATOR ROSTERS IF YOU HAVE A LIST OF 50000 PEOPLE THESE DAYS YOU'VE GOT SOME DEAD PEOPLE ON IT HE ADDS THAT THE AAA'S ARBITRATION RULES HAVE BEEN STREAMLINED TO SOME DEGREE BUT THAT IT'S VERY HARD TO CHANGE RULES THAT HAVE BEEN USED IN THOUSANDS OF CASES IN AN ABOUTFACE FROM THE PRIOR ADMINISTRATION THE JUSTICE DEPARTMENT HAS TOLD A FEDERAL APPEALS COURT THAT IT SUPPORTS THE USE OF THE SOCALLED KU KLUX KLAN LAW TO PREVENT BLOCKADES OF ABORTION CLINICS THE JUSTICE DEPARTMENT'S SWITCH COMES FOUR MONTHS AFTER THE US SUPREME COURT RULED THAT THE LAW WHICH BARS CONSPIRACIES BASED ON HATRED TO DEPRIVE A PARTICULAR GROUP OF ITS RIGHTS DIDN'T APPLY TO THE BLOCKADES THE JUSTICE DEPARTMENT UNDER PRESIDENT BUSH HAD ARGUED TO THE SUPREME COURT AGAINST SUCH USE OF THE 1871 LAW WHICH ORIGINALLY WAS AIMED AT PROTECTING FORMER SLAVES BUT PRESIDENT CLINTON'S JUSTICE DEPARTMENT MAINTAINS THAT THE SUPREME COURT RULING BRAY VS ALEXANDRIA WOMEN'S HEALTH CLINIC SHOULDN'T BE VIEWED AS FINAL THE NEW ADMINISTRATION'S STANCE IS DESCRIBED IN A BRIEF FILED WITH THE TENTH US CIRCUIT COURT OF APPEALS IN DENVER IN SUPPORT OF A WICHITA KANSAS ABORTION CLINIC THE BRIEF ECHOES A SURPRISING RULING LAST WEEK BY THE US SECOND CIRCUIT COURT OF APPEALS IN NEW YORK THAT SAID ABORTION CLINICS SHOULD BE GIVEN THE CHANCE DESPITE THE BRAY RULING TO PROVE THAT BLOCKADES ARE CONSPIRACIES GOVERNED BY THE KU KLUX KLAN LAW THE JUSTICE DEPARTMENT GOES FURTHER THAN THE SECOND CIRCUIT DECISION IT ARGUES THAT THE SUPREME COURT RULING LEFT OPEN THE POSSIBILITY THAT ANOTHER SECTION OF THE KU KLUX KLAN LAW MIGHT APPLY THAT SECTION PROHIBITS CONSPIRACIES DESIGNED TO PREVENT STATE OFFICIALS FROM SECURING EQUAL RIGHTS TO ALL PEOPLE IN A STATE THE JUSTICE DEPARTMENT BRIEF ALSO POINTS OUT SEVERAL TIMES THAT THE BRAY RULING WAS A 54 DECISION WHAT THE BRIEF DOESN'T MENTION IS THAT ONE OF THE MAJORITY JUSTICE BYRON WHITE WILL RETIRE LATER THIS YEAR GIVING PRESIDENT CLINTON THE OPPORTUNITY TO NOMINATE SOMEONE TO THE COURT WHO IS MORE SYMPATHETIC TO THE JUSTICE DEPARTMENT'S POSITION THE CASE BEFORE THE APPEALS COURT IN DENVER INVOLVES AN INJUNCTION THAT WAS IMPOSED IN 1991 ON OPERATION RESCUE THE ANTIABORTION GROUP BY US DISTRICT JUDGE PATRICK KELLY OPERATION RESCUE HAD BLOCKADED THE WICHITA ABORTION CLINIC OVERWHELMING LOCAL LAWENFORCEMENT OFFICIALS AND JUDGE KELLY ORDERED FEDERAL MARSHALS TO KEEP THE CLINIC OPEN CITING THE BRAY DECISION LAWYERS FOR OPERATION RESCUE MAINTAIN THAT THE INJUNCTION SHOULD BE REVERSED TWO ATTORNEYS FORMERLY WITH BOSTON LAW FIRM WARNER & STACKPOLE WERE CHARGED WITH DEFRAUDING DIME SAVINGS BANK OF NEW YORK THE ATTORNEYS WERE CHARGED WITH FALSIFYING LOAN DOCUMENTS TO HELP BUYERS PURCHASE CONDOMINIUMS THE US ATTORNEY'S OFFICE IN BOSTON SAID IN ADDITION WARNER & STACKPOLE AGREED TO PAY 500000 TO SETTLE A SEPARATE CIVIL SUIT FILED AGAINST IT IN CONNECTION WITH THE CASE REPRESENTING THE ESTIMATED AMOUNT OF FEES THE FIRM RECEIVED IN 1987 AND 1988 ON DIME CLOSINGS WARNER & STACKPOLE MAINTAINED THAT IT WASN'T AWARE OF THE ALLEGED MISDEEDS THE CRIMINAL CHARGES WERE FILED AGAINST FORMER WARNER & STACKPOLE PARTNER MARGUERITE NICKERSON OF PLYMOUTH MASS AND FORMER ASSOCIATE SCOTT JAMIESON OF NATICK MASS THE TWO WERE ACCUSED OF MAKING FALSE STATEMENTS TO DIME IN CONNECTION WITH CONDOMINIUM PROJECTS FOR WHICH DIME WAS PROVIDING LOANS TO BUYERS FEDERAL PROSECUTORS SAID THE TWO DEFENDANTS DECEIVED THE BANK INTO BELIEVING THAT BUYERS OF UNITS AT VARIOUS CONDOMINIUM PROJECTS IN MASSACHUSETTS HAD MADE LARGE DOWN PAYMENTS OF AS MUCH AS 20 OF THE PURCHASE PRICE ON THE UNITS ALTHOUGH SOME HAD PUT NO MONEY DOWN PROSECUTORS ALSO ALLEGED THAT THE DEFENDANTS CONCEALED FROM DIME THE FACT THAT BUYERS HAD RECEIVED SECOND MORTGAGES AND THIRD MORTGAGES TO FINANCE THEIR PURCHASES MOST OF THE FRAUDULENTLY OBTAINED LOANS IDENTIFIED IN THE CHARGES ARE IN DEFAULT AND DIME HAS HAD TO FORECLOSE ON THE UNITS MY CLIENT DIDN'T RECEIVE A DIME OUT OF ALL THESE DEALS AND SHE TRULY REGRETS HER INVOLVEMENT IN THE MATTER I CANNOT TELL YOU HOW MUCH GRIEF THIS HAS BROUGHT ON FOR HER SAID ELLIOT LOBEL MS NICKERSON'S ATTORNEY AN ATTORNEY FOR MR JAMIESON DIDN'T RETURN A CALL SEEKING COMMENT GET OUT OF JAIL CHOOSING TO STAY BEHIND BARS ISN'T AN OPTION FOR WELLBEHAVED PRISONERS A FEDERAL APPEAL COURT SAID IN THE CASE OF A MILITARYWEAPONS PROTESTER THE PRISONER CONVICTED OF DESTROYING GOVERNMENT PROPERTY AT A MISSILE SILO ARGUED THAT HER RELIGIOUS BELIEFS WOULD BE VIOLATED IF SHE WEREN'T ALLOWED TO SERVE HER ENTIRE 12YEAR SENTENCE REVERSING A LOWER COURT THE US COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA SAID SUCH SENTENCE REDUCTIONS ARE MANDATORY REGINALD LEWIS HONORED HARVARD LAW SCHOOL RENAMED ITS INTERNATIONAL LEGAL STUDIES BUILDING THE REGINALD F LEWIS INTERNATIONAL LAW CENTER AFTER THE LATE CHAIRMAN OF TLC BEATRICE INTERNATIONAL HOLDINGS CORP BEFORE MR LEWIS'S DEATH IN JANUARY A FOUNDATION HE ENDOWED GAVE HARVARD 3 MILLION FOR INTERNATIONAL STUDIES MR LEWIS WAS A GRADUATE OF THE LAW SCHOOL JONATHAN M MOSES CONTRIBUTED TO THIS ARTICLE 9304280010 930428 JUSTIN HOLDERS INCREASE SHARES FORT WORTH TEXAS JUSTIN INDUSTRIES INC SAID ITS SHAREHOLDERS APPROVED AN AMENDMENT TO ITS ARTICLES OF INCORPORATION PROVIDING AN INCREASE IN AUTHORIZED SHARES TO 100 MILLION FROM 20 MILLION THE COMPANY SAID THE NEW PROVISION WILL ALLOW IT TO CARRY OUT A TWOFORONE STOCK SPLIT MAY 18 TO SHAREHOLDERS OF RECORD MAY 7 JUSTIN INDUSTRIES SAID THE COMPANY HAS NO IMMEDIATE PLANS TO USE THE BALANCE OF THE AUTHORIZED SHARES 9304280009 930428 SOUTHWESTERN PROPERTY TRUST DALLAS SOUTHWESTERN PROPERTY TRUST INC SAID IT AGREED TO ACQUIRE NINE APARTMENT COMPLEXES IN TEXAS AND ARIZONA FOR A TOTAL OF ABOUT 66 MILLION FROM FOUR SELLERS IT DECLINED TO IDENTIFY THE COMPANY A REAL ESTATE INVESTMENT TRUST SAID THE COMPLEXES COMPRISED 2264 APARTMENT UNITS AND ARE SITUATED IN IRVING ARLINGTON AND EL PASO TEXAS AND PHOENIX ARIZ THE ACQUISITIONS WILL INCREASE THE NUMBER OF APARTMENT UNITS IN ITS PORTFOLIO TO ABOUT 8000 THE TRUST SAID 9304280008 930428 XEROX POSTS A PROFIT FOR THE FIRST QUARTER BUT ITS STOCK DECLINES STAMFORD CONN XEROX CORP REPORTED A FIRSTQUARTER PROFIT COMPARED WITH A LARGE LOSS IN THE YEAREARLIER PERIOD THAT WAS ATTRIBUTABLE TO ONETIME CHARGES FOR ACCOUNTING ADJUSTMENTS HOWEVER REVENUE FROM THE COMPANY'S CORE DOCUMENT PROCESSING EQUIPMENT BUSINESS WAS FLAT AND INCOME FROM CONTINUING OPERATIONS OF ITS FINANCIALSERVICES BUSINESS WAS DOWN INVESTORS WERE DISAPPOINTED PUSHING XEROX'S STOCK DOWN 275 TO 75 IN LATE NEW YORK STOCK EXCHANGE TRADING THE OFFICE EQUIPMENT MAKER AND PROVIDER OF FINANCIAL SERVICES SAID NET INCOME WAS 189 MILLION OR 177 A SHARE COMPARED WITH A LOSS OF 529 MILLION OR 568 A SHARE IN THE 1992 FIRST QUARTER THE YEAREARLIER QUARTER INCLUDED A NONRECURRING NET CHARGE OF 764 MILLION FOR CHANGES IN ACCOUNTING FOR POSTRETIREMENT BENEFITS AND INCOME TAXES THE CHARGE WAS PARTLY OFFSET BY A 122 MILLION CREDIT FOR A TAXLOSS CARRYFORWARD ON THE SALE OF ITS INTEREST IN VMS REALTY PARTNERS XEROX SAID OPERATING PROFIT FROM ITS DOCUMENTPROCESSING EQUIPMENT BUSINESS ROSE TO 125 MILLION FROM 103 MILLION A YEAR AGO INCOME FROM FINANCIAL SERVICES WHICH XEROX PREVIOUSLY SAID IT WILL SELL WAS 64 MILLION INCLUDING A 63 MILLION GAIN ON THE FEBRUARY SALE OF ITS VAN KAMPEN MERRITT COS AND XEROX FINANCIAL INC UNITS YEAREARLIER INCOME FROM FINANCIAL SERVICES WAS 10 MILLION REVENUE FROM DOCUMENTPROCESSING OPERATIONS WAS 329 BILLION COMPARED WITH 331 BILLION A YEAR EARLIER TOTAL REVENUE WAS 411 BILLION COMPARED WITH 421 BILLION ALTHOUGH XEROX DIDN'T INCLUDE REVENUE FOR FINANCIAL SERVICES IN ITS EARNINGS STATEMENT SINCE IT NO LONGER REPORTS THOSE RESULTS ON A CONSOLIDATED BASIS 9304280007 930428 BANCINSURANCE CANCELS PUBLIC STOCK OFFERING AUTO PRODUCT AT ISSUE COLUMBUS OHIO BANCINSURANCE CORP SAID IT CANCELED A COMMON STOCK PUBLIC OFFERING BECAUSE OF ISSUES ARISING OUT OF A DISCONTINUED PRODUCT THE COMPANY SAID IT WILL WITHDRAW A REGISTRATION STATEMENT FOR THE OFFERING WHICH IT FILED LAST MONTH WITH THE SECURITIES AND EXCHANGE COMMISSION AT ISSUE IS A PRODUCT PREVIOUSLY SOLD IN CALIFORNIA AND TEXAS WHICH PROVIDED LIENHOLDERS WITH COVERAGE AGAINST A TOTAL LOSS AND AUTOMOBILE OWNERS AGAINST UNRECOVERED THEFT ACCORDING TO A BANCINSURANCE PRESS RELEASE IT WAS OFFERED AS PART OF AN AUTO REPAIR CONTRACT SOLD BY AN UNRELATED COMPANY AMERICAN AUTOPLAN INC AND WAS AN ALTERNATIVE TO STANDARD PHYSICAL DAMAGE INSURANCE THE COMPANY SAID THE PRODUCT WAS DISCONTINUED BECAUSE THE CALIFORNIA AND TEXAS INSURANCE DEPARTMENTS DETERMINED THAT AUTO REPAIR CONTRACTS CONSTITUTE A FORM OF INSURANCE AND CANNOT BE SOLD BY AMERICAN AUTOPLAN WITHOUT APPROPRIATE LICENSING BANCINSURANCE SAID AMERICAN AUTOPLAN RECENTLY DISCONTINUED BUSINESS AND CEASED HONORING OBLIGATIONS UNDER REPAIR CONTRACTS THE PRESS RELEASE SAID ADDING THAT THE CALIFORNIA DEPARTMENT OF INSURANCE HAS LAUNCHED AN INVESTIGATION OF THIS PROGRAM BANCINSURANCE SAID IT IS IN DISCUSSIONS WITH THE CALIFORNIA INSURANCE DEPARTMENT CONCERNING ITS OBLIGATIONS TO CONSUMERS ARISING OUT OF ITS PARTICIPATION AT THIS TIME THE COMPANY CANNOT PREDICT THE EXTENT OF THE LIABILITY OR THE TIMING OF THE RESOLUTION OF THE ISSUES PRESENTED THE PRESS RELEASE SAID BANCINSURANCE PRESIDENT SI SOKOL DECLINED TO DISCUSS THE MATTER AND SAID ONLY I CAN'T RESPOND ANY MORE THAN WHAT'S IN THAT PRESS RELEASE AMERICAN AUTOPLAN COULD NOT BE REACHED FOR COMMENT 9304280006 930428 WHO'S NEWS SUN COAST PLASTICS INC SUN COAST PLASTICS INC DALLAS R CARTER PATE 39 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS PLASTICS MAKER HE WAS PREVIOUSLY CHIEF EXECUTIVE OFFICER OF TIDEL ENGINEERING INC AND SUCCEEDS JIM CONNOR 53 A DIRECTOR WHO WAS SUN COAST'S INTERIM CHIEF EXECUTIVE OFFICER SINCE SEPTEMBER 1992 9304280005 930428 CONTRASTING IMAGES THE NEW FINANCE CHIEF AT KODAK HAS A STYLE QUITE UNLIKE HIS BOSS'S WHILE CHAIRMAN WHITMORE ABHORS CUTTING WORKERS STEFFEN DOESN'T FLINCH YELLOW GIANT'S LITTLE STEPS BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL ROCHESTER NY KAY R WHITMORE IS THE SORT OF BOSS MOST PEOPLE WOULD WANT KIND GENEROUS COLLEGIAL SURE HE'S CHAIRMAN OF EASTMAN KODAK CO BUT MR WHITMORE 60 YEARS OLD OFTEN WEARS HIS NAME TAG ON HIS SHIRT JUST LIKE THE REGULAR JOES THE QUESTION IS WHETHER MR WHITMORE IS A CHARMING ANACHRONISM IN AN AGE THAT REQUIRES CHRISTOPHER J STEFFEN MR STEFFEN 51 FAVORS LIMITEDEDITION TRAFALGAR SUSPENDERS AND MATCHING TIE AND KERCHIEF SETS HE RELISHES CONFRONTATION REFERRING TO HIS EARLIER EXPERIENCE AT CHRYSLER CORP HE SAYS THAT WHEN HALF THE WORKERS AT A TROUBLED COMPANY MUST BE LAID OFF THE OTHER HALF BUY IN PRETTY QUICKLY SINCE MR WHITMORE HIRED MR STEFFEN AS CHIEF FINANCIAL OFFICER IN JANUARY KODAK STOCK HAS GAINED 345 BILLION IN VALUE THE TWO MEN'S DISPARATE VALUES SAY A LOT ABOUT THE CHALLENGE OF MANAGING LARGE CORPORATIONS IN THE DIFFICULT 1990S AND THERE IS NO QUESTION THAT KODAK HAS CHALLENGES TODAY IT IS EXPECTED TO REPORT LOWER FIRSTQUARTER OPERATING EARNINGS DUE TO DECLINING FILM AND COPIER SALES INVESTORS ARE HOPING MR STEFFEN CAN TURN THE SHIP AROUND HE PROMISED AS MUCH JUST TWO WEEKS INTO HIS NEW JOB WHILE DINING WITH WALL STREET ANALYSTS IN A PRIVATE ROOM AT NEW YORK'S HELMSLEY PALACE HOTEL OVER FILET MIGNON HE ACCOMPLISHED IN ONE EVENING WHAT OTHERS AT KODAK HAVE BEEN UNABLE TO DO IN YEARS INSTILL CONFIDENCE IN THE COMPANY'S FUTURE ABOUT TWO WEEKS EARLIER KODAK HAD HELD A MEETING FOR ANALYSTS IN NEW YORK THAT LEFT MANY FEELING DECIDEDLY NEGATIVE AS KODAK EXECUTIVES OFFERED VAGUE PROJECTIONS FOR THE COMPANY'S FUTURE AND SHOWED CHARTS WITHOUT NUMBERS ATTENDEES FIDGETED AND SOME EVEN WALKED OUT JACK KELLY OF GOLDMAN SACHS & CO FLASHED A THUMBS DOWN TO A COLLEAGUE THE NEXT DAY THE STOCK PLUNGED 6 IN NEW YORK STOCK EXCHANGE TRADING BEFORE RECOVERING SOMEWHAT BY THE SESSION'S END BY CONTRAST MR STEFFEN HELD LIVELY COURT AT THE HELMSLEY HE SET SPECIFIC FINANCIAL GOALS AND PROMISED A TURNAROUND PLAN BY AUG 24 SINCE KODAK HAS TRIED AND FAILED TO RESTRUCTURE BEFORE ANALYSTS ASKED WHY THEY SHOULD BELIEVE KODAK NOW MR STEFFEN'S REPLY THIS IS THE POSTSTEMPEL WORLD THE REFERENCE TO THE GENERAL MOTORS CORP CHAIRMAN WHO WAS FORCED OUT BY HIS BOARD POSITIVELY IMPRESSED THE ANALYSTS THE NEXT DAY KODAK STOCK JUMPED 52 OR 262 A SHARE TO 53 YESTERDAY IT CLOSED AT 52375 ALTHOUGH MR STEFFEN IS JUST ONE OUTSIDER IN A COMPANY THAT IS PROUD OF ITS HOMEGROWN MANAGEMENT TRADITION INVESTORS ARE BETTING THE NEWCOMER CAN CUT FAT AT KODAK AS HE DID EARLIER AT HONEYWELL INC WHERE HE ASSISTED IN A THREEYEAR TURNAROUND OF THE ENGINEERING AND INDUSTRIAL SYSTEMS CONCERN BUT WHILE INVESTORS APPLAUD MR WHITMORE KODAK'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SINCE JUNE 1990 EXPRESSES RESERVATIONS ALTHOUGH HE PERSONALLY RECRUITED MR STEFFEN AFTER THE BOARD PUSHED HIM TO HIRE AN OUTSIDER MR WHITMORE THOUGHT HE WAS SIMPLY GETTING A FIRSTRATE NUMBERS CRUNCHER NOT SOMEONE WHO WOULD UPSTAGE HIM IF CHRIS STEFFEN COMES IN HERE ASSUMING HE'S THE LONE RANGER HE WILL NOT LAST VERY LONG MR WHITMORE SAYS IN AN INTERVIEW HE CAN'T DO IT ALL BY HIMSELF THE MAN CLEARLY UNDER PRESSURE IS MR WHITMORE KODAK EARNINGS WHICH HIT 14 BILLION IN 1988 HAVEN'T REACHED THAT LEVEL SINCE ALTHOUGH LAST YEAR'S DID SHOW A RISE OVER 1991 THE BOARD IS DEMANDING EARNINGS IMPROVEMENT AGAIN THIS YEAR THE COMPANY IS PROJECTING SOLID EARNINGS GROWTH IN 1993 WITH A NEW SENSE OF URGENCY MR WHITMORE HAS BEEN SCRAMBLING TO CUT COSTS THIS YEAR BEFORE MR STEFFEN ARRIVED THE CEO VOWED TO SLASH RESEARCH SPENDING AND LET 2000 WORKERS GO ALTHOUGH HE SOFTENED THE BLOW BY OFFERING FOUR MONTHS OF MEDICAL BENEFITS AND A RETRAINING ALLOWANCE OF UP TO 5000 THE CUTBACKS KODAK'S FIRST MAJOR LAYOFFS IN MORE THAN A DECADE WERE EXTREMELY PAINFUL FOR KAY SAYS A FORMER MANAGER IT'S PEOPLE BEING FIRED UNCEREMONIOUSLY WITH NO REGARD FOR LENGTH OF SERVICE THAT DISTURBED MR WHITMORE THE FORMER MANAGER SAYS BUT INVESTORS SEEM TO BE HOPING FOR NO LESS THAN A BLOODLETTING THOUSANDS MORE LAYOFFS AND THE SALE OF ENTIRE BUSINESSES AND SOME BELIEVE MR WHITMORE WHO SEEMS TO PRIZE CONSENSUS OVER SPEED ISN'T THE PERSON FOR THE JOB KAY MAY BE THE RIGHT GUY TO BE THE PILOT OF A GLACIER SAYS ROBERT MONKS A SHAREHOLDER ACTIVIST WHO HAS TARGETED KODAK AS A COMPANY WHERE HE WILL TRY TO FORCE CHANGE THE TROUBLE IS THE WATER HAS GOTTEN HOT ENTER MR STEFFEN THE IMAGE HE CUTS IS IN SHARP CONTRAST TO THAT OF HIS NEW BOSS AND THE KODAK CULTURE SHUNNING THE CONSERVATIVE LOOK THAT PREVAILS IN KODAK'S ARMY OF EXECUTIVES MR STEFFEN COMBS HIS HAIR IN A MINIPOMPADOUR AND WEARS A LARGE GOLDCHAIN BRACELET WHILE MR STEFFEN HAS HOPPED FROM ONE FORTUNE 500 COMPANY TO ANOTHER PRICE WATERHOUSE WHITMAN CORP HYATT CORP AND CHRYSLER BEFORE HONEYWELL AND NOW KODAK MR WHITMORE HAS SPENT HIS ENTIRE 35YEAR CAREER WITH THE YELLOW GIANT AS KODAK IS CALLED IN THE TRADE MR WHITMORE IS SO METHODICAL THAT HE PLANS HIS ENTIRE CALENDAR FOR THE NEW YEAR BY SEPTEMBER AND SOMETIMES SPENDS YEARS MULLING DECISIONS FOR INSTANCE KODAK'S NEW REQUIREMENT FOR TOP OFFICERS TO BUY BIG CHUNKS OF COMPANY STOCK HAD BEEN UNDER CONSIDERATION SINCE THE MID1980S ONE FORMER MANAGER SAYS WHILE IT PAINS MR WHITMORE TO MAKE ANY CUTS IN HIS COMPANY'S PAYROLL MR STEFFEN IS PROUD EVEN BOASTFUL OF HIS ROLE IN SOME BLOODY CORPORATE RESTRUCTURINGS THE ONE HE TOOK PART IN AT HONEYWELL INVOLVED A SPINOFF OF ITS DEFENSE AND MARINE BUSINESSES THE BUYBACK OF STOCK AND THE ELIMINATION OF 4000 JOBS INCLUDING 300 POSITIONS AT HEADQUARTERS IN A SPEECH TO THE TURNAROUND MANAGEMENT ASSOCIATION IN NEW YORK IN FEBRUARY HE SAID INFLICTING PAIN IS A GIVEN IN ANY RESTRUCTURING MR STEFFEN LEFT HONEYWELL AFTER LOSING OUT IN A THREEWAY RACE FOR THE CHAIRMAN'S SEAT SO FAR THE NEW KODAK CFO HAS BEEN EXTREMELY POLITIC ABOUT HIS NEW ROLE POLITELY SIDESTEPPING ANY SPECIFIC SUGGESTIONS ON CHANGING THE COMPANY IT'S GOING TO TAKE TIME TO TELL WHERE THE BUSINESSES ARE HE SAYS KODAK'S BASIC PROBLEMS AREN'T UNIQUE IN AMERICAN INDUSTRY AFTER A CENTURY OF DOMINATING THE US MARKET IN ITS MAIN BUSINESS PHOTO FILM KODAK IS GETTING STUNG BY COMPETITION FROM PRIVATELABEL PRODUCTS AND ARCHRIVAL FUJI PHOTO FILM CO OF JAPAN ALSO CAMCORDERS ARE HURTING ALL FILM SALES AND THE SLUGGISH EUROPEAN AND JAPANESE ECONOMIES HAVE CUT INTO SALES OVERSEAS THE RESULT KODAK CAN NO LONGER RELY ON ITS LITTLE YELLOW BOXES OF FILM TO OFFSET SLOW GROWTH IN OTHER BUSINESSES KODAK HAS TRIED TO DIVERSIFY INTO PRESCRIPTION DRUGS AND ELECTRONIC IMAGING BUT SO FAR BOTH HAVE GOBBLED UP RESEARCH DOLLARS WITHOUT PRODUCING BLOCKBUSTER PRODUCTS THE DRUG BUSINESS STERLING WINTHROP HAS CANCER DRUGS AND OTHER POTENTIAL WINNERS IN THE PIPELINE BUT MOST ARE AT LEAST TWO YEARS AWAY FROM MARKET IN ELECTRONICS KODAK BET ON HIGHVOLUME COPIERS ONLY TO WATCH CUSTOMERS FLOCK TO LOWVOLUME MACHINES INSTEAD TO STAY IN THAT BUSINESS KODAK ENLISTED CANON TO MAKE LOWVOLUME COPIERS THAT KODAK SELLS UNDER ITS OWN NAME KODAK'S MOST SOLID BUSINESS IS CHEMICALS EASTMAN CHEMICAL IS THE LARGEST SUPPLIER OF POLYETHYLENE TEREPTHYLATE OR PET RESINS FOR RECYCLABLE SODA BOTTLES SOME ANALYSTS THINK MR STEFFEN MAY SUGGEST SPINNING IT OFF AS A SEPARATE COMPANY BUT KODAK'S FIRST PRIORITY NO DOUBT IS CUTTING COSTS ITS RESEARCH AND DEVELOPMENT BUDGET 16 BILLION OR 79 OF LAST YEAR'S SALES IS AMONG THE FATTEST IN THE FORTUNE 500 ALSO HIGH IS SPENDING ON SALES ADVERTISING DISTRIBUTING AND ADMINISTRATIVE COSTS WHICH WERE 59 BILLION LAST YEAR OR 29 OF SALES IN OTHER AREAS KODAK HAS APPEARED TO BE WASTEFUL EVEN AFTER MR WHITMORE BECAME CEO AND WAS GIVEN A MANDATE TO CUT COSTS IN MAY 1991 KODAK CUT THE RIBBON ON AN EXTRAVAGANT 10 MILLION CENTER FOR CREATIVE IMAGING ON PENOBSCOT BAY IN CAMDEN MAINE THE CENTER WAS DESIGNED TO PROMOTE KODAK'S NEW PHOTO CD TECHNOLOGY A WAY OF STORING PHOTOS ON COMPACT DISKS THAT CAN BE VIEWED ON TELEVISION OR EDITED ON COMPUTERS A BIG HIT WITH PROFESSIONAL PHOTOGRAPHERS AND GRAPHIC ARTISTS THE CENTER OFFERED SUCH COURSES AS DIGITAL MUSIC MASTERING AND BROWSABLE MOVIES AND SURROGATE TRAVEL IT WAS LIKE AN IDYLLIC RETREAT SAYS MULTIMEDIA TEACHER TOM NICHOLSON MONEY WASN'T AN OBJECT BUT SOME OF KODAK'S TOP OFFICERS WERE APPALLED IN FEBRUARY KODAK AGREED TO SELL THE CENTER TO A PRIVATE INVESTOR GROUP ON UNDISCLOSED TERMS WE THOUGHT IT WAS A GREAT IDEA TO SHOWCASE THE LATEST IMAGING TECHNOLOGY KODAK SAYS IN A WRITTEN RESPONSE TO QUESTIONS WE SIMPLY HAVE CHOSEN TO ALLOW SOMEONE ELSE TO RUN THE CENTER EVEN WHEN MR WHITMORE TRIES TO CUT COSTS HE HAS SOMETIMES BEEN GENEROUS TO A FAULT HIS FIRST EFFORT AT CUTTING KODAK'S PAYROLL WOUND UP COSTING THE COMPANY 1 BILLION IN JULY 1991 WITH TWO WEEKS TO GO BEFORE REPORTING DECLINING SECONDQUARTER EARNINGS MOST OF THE SENIOR MANAGEMENT TEAM DECIDED KODAK NEEDED TO SHED 4000 WORKERS MR WHITMORE BALKED AT THE NUMBER SAYS A FORMER EXECUTIVE ACCORDING TO THIS PERSON KAY SAID LET'S DO THREE FOUR WOULD CREATE TOO MUCH TURMOIL' MR WHITMORE DECLINED TO COMMENT THE SEVERANCE PLAN MR WHITMORE APPROVED WAS AS HE LATER SAID TOO RICH LIFETIME HEALTH AND DENTAL BENEFITS BRIDGE PAYMENTS UNTIL AGE 62 ROUGHLY EQUAL TO THE EMPLOYEE'S FUTURE SOCIAL SECURITY PAYMENT AND A YEAR'S PAY FOR THOSE WHO RETIRED BY THE END OF THE YEAR THE PLAN WAS QUICKLY OVERSUBSCRIBED ATTRACTING 8321 EMPLOYEES AT AN AVERAGE COST OF 120000 AND WHILE KODAK COULD HAVE LIMITED ACCEPTANCE IN THE PROGRAM IT DECIDED NOT TO FEARING THAT ANY WORKER WHO MISSED OUT WOULD BECOME BITTER KODAK LOST SOME SPECIALIZED MANAGERS AS WELL AS 2000 FACTORY WORKERS WITH DECADES OF EXPERIENCE UNABLE TO REHIRE THEM BECAUSE OF THE PLAN'S RULES THE COMPANY WAS FORCED TO RECRUIT ABOUT 2000 TEMPORARY WORKERS SOME OF WHOM ARE STILL ON THE PAYROLL MR WHITMORE'S GENEROSITY TO EMPLOYEES IS IN MANY WAYS A REFLECTION OF HIS UPBRINGING AND RELIGIOUS BELIEFS A DEVOUT MORMON WHO PRIDES HIMSELF ON HIS CIVIC INVOLVEMENT HE IS A FAMILY MAN BOTH AT HOME AND AT KODAK HE ONCE APOLOGIZED TO A MANAGER ABOUT SCHEDULING A 7 AM MEETING THAT DISRUPTED HER CHILDCARE ARRANGEMENTS AND PROMISED NEVER TO DO IT AGAIN MR WHITMORE ACKNOWLEDGES THAT HIS MANAGEMENT STYLE HAS CONTRIBUTED TO A LACK OF URGENCY AT KODAK I REGRET WE DIDN'T MOVE FASTER HE SAYS IN AN INTERVIEW ADDING THAT HE HAS BEEN TAKEN BY SURPRISE BY THE SPEED WITH WHICH CHANGE HAS TAKEN PLACE IN CORPORATE AMERICA IF HE DOESN'T MOVE MORE SWIFTLY HE COULD FACE A BOARDROOM MUTINY SINCE THE MID1980S KODAK'S BOARD HAS CHANGED FROM ONE DOMINATED BY INSIDERS TO ONE THAT IS NOW TWOTHIRDS OUTSIDERS AND PLAYING A MORE ACTIVE ROLE IN ADDITION MR STEFFEN IS EXPECTED TO BE ELECTED TO THE BOARD AT THE MAY 12 ANNUAL MEETING HE SAYS NO ONE HAS HINTED THAT HE WILL GET THE TOP JOB AT KODAK UPON MR WHITMORE'S EXPECTED RETIREMENT AT AGE 65 IN FIVE YEARS THERE ARE THREE GROUP VICE PRESIDENTS WHO WOULD ALSO BE CANDIDATES NO ONE HAS PROMISED ME THAT JOB MR STEFFEN SAYS STILL HEADING A FORTUNE 500 COMPANY IS CERTAINLY ON THE LIST OF THINGS I WANT TO DO 9304280004 930428 AMPCOPITTSBURGH TO SELL BUFFALO FORGE TO HOWDEN GROUP PITTSBURGH AMPCOPITTSBURGH CORP SAID IT AGREED ON MONDAY TO SELL ITS BUFFALO FORGE FAN AND AIRHANDLING UNIT TO BRITAIN'S HOWDEN GROUP PLC FOR 343 MILLION AMPCOPITTSBURGH BASED IN PITTSBURGH MAKES AIRHANDLING EQUIPMENT FORGED STEEL ROLLS AND RELATED EQUIPMENT THE COMPANY SAID THAT IF THE SALE IS COMPLETED IT EXPECTS TO TAKE A 15 MILLION CHARGE FOR THE SECOND QUARTER THE CARRYING AMOUNT OF THE ASSETS BEING TRANSFERRED IS ABOUT 50 MILLION AND THE CONSIDERATION WE'RE RECEIVING IS ABOUT 35 MILLION SO THE LOSS WILL BE ABOUT 15 MILLION A SPOKESMAN SAID AMPCOPITTSBURGH ALSO DISCLOSED THAT ON APRIL 2 IT SOLD ITS 20 STAKE IN US BIOCHEMICAL CORP A BIOCHEMICAL COMPANY BASED IN CLEVELAND TO BRITAIN'S AMERSHAM INTERNATIONAL FOR 65 MILLION IN CASH AND 23 MILLION OF AMERSHAM STOCK AMPCOPITTSBURGH SAID IT EXPECTS TO POST A 65 MILLION ONETIME GAIN IN THE SECOND QUARTER AS A RESULT OF THE SALE OF ITS US BIOCHEMICAL INTEREST AMERSHAM NOW OWNS ALL OF US BIOCHEMICAL AMPCOPITTSBURGH WHICH HAS AN APPROXIMATELY 7 STAKE IN NORTHWESTERN STEEL & WIRE CO STERLING ILL SAID NORTHWESTERN STEEL & WIRE FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO ISSUE ADDITIONAL SHARES WITH A PROPOSED MAXIMUM OFFERING PRICE OF 11 A SHARE AMPCOPITTSBURGH SAID IT IS NOT A PARTY TO THE OFFERING AND ITS 1106331 SHARES ARE SUBJECT TO A SIXMONTH WAITING PERIOD IF THE OFFERING GOES FORWARD THE CARRYING VALUE OF AMPCOPITTSBURGH'S INVESTMENT IN NORTHWESTERN STEEL & WIRE IS ABOUT 500000 IN ADDITION AMPCOPITTSBURGH POSTED FIRSTQUARTER NET INCOME OF 222000 OR TWO CENTS A SHARE ON SALES OF 536 MILLION THAT COMPARES WITH A YEAREARLIER LOSS OF 123 MILLION OR 129 A SHARE ON SALES OF 497 MILLION THE YEAREARLIER PERIOD INCLUDED A ONETIME NONCASH CHARGE OF 128 MILLION OR 124 A SHARE AS A RESULT OF ACCOUNTING CHANGES FOR RETIREE HEALTH BENEFITS AND DEFERRED INCOME TAXES IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE AMPCO WAS QUOTED AT 650 UP 25 CENTS 9304280003 930428 LEISURE & ARTS THE GALLERY FRANKENTHALER'S PRINTS BY DEBORAH SOLOMON WASHINGTON DC MOST OF THE YOUNG ARTISTS I KNOW DISLIKE THE WORK OF HELEN FRANKENTHALER THEY FIND HER PICTURES PRETTY AND DECORATIVE THIS IS A PUTDOWN THEY SPEAK OF HER AS AN OVERRATED STAR OF THE 1950S ART SCENE THEY SAY HER CAREER BENEFITED GREATLY FROM HER WELLKNOWN ROMANCE WITH THE CRITIC CLEMENT GREENBERG MOREOVER MS FRANKENTHALER WILL NEVER WIN A CONTEST FOR MODESTY SHE CONDUCTS HERSELF AS IF SHE ALONE WERE EXTENDING THE GREAT PAINTERLY TRADITION THAT ORIGINATED WITH HER ABSTRACTEXPRESSIONIST PREDECESSORS AND IN MAGAZINE INTERVIEWS IS LIKELY TO REMARK ONLY HALFJOKINGLY THAT SHE CAN'T THINK OF A SINGLE FEMALE ARTIST BESIDES HERSELF WHO POSSESSES ANY TALENT TO SAY THAT YOU LIKE MS FRANKENTHALER'S WORK AS I DO IS TO PUT YOURSELF ON THE DEFENSIVE ALAS A TASTE FOR MS FRANKENTHALER HAS BECOME SOMETHING OF A HERESY IN TODAY'S ART WORLD AND THE FAULT IS LARGELY HER OWN BY ACTING AS IF SHE'S ROYAL BLOOD COMPARED WITH EVERY OTHER ARTISTPEON SHE HAS INSISTED ON A MYTH OF SUPERIORITY THAT THE WORK SIMPLY CANNOT SUSTAIN NO ONE'S WORK COULD FURTHERMORE FOR THE PAST FOUR DECADES SHE'S MADE PAINTINGS THAT FEATURE THE SAME LUMINOUS POOLS OF POURED COLOR AND THAT CONTINUE TO DEPEND ON THE INNOVATIVE SOAKSTAIN METHOD SHE PIONEERED IN THE '50S HER WORK IS SO FAMILIAR BY NOW THAT PEOPLE HAVE STOPPED LOOKING AT IT SO THEY MISS THE OCCASIONAL SURE WINNER MS FRANKENTHALER'S SPECIALTY IS HER LIGHT TOUCH WHICH MIGHT NOT SEEM TO LEND ITSELF TO THE ELABORATE TECHNICAL DEMANDS OF ETCHING AND LITHOGRAPHY BUT SHE HAS BEEN AN INVENTIVE AND INSPIRED PRINTMAKER AND THE PROOF CAN NOW BE FOUND IN HELEN FRANKENTHALER PRINTS A SURVEY OF HER GRAPHIC WORK AT THE NATIONAL GALLERY OF ART HERE UP UNTIL SEPT 6 AFTER WHICH IT TRAVELS TO SAN DIEGO BOSTON AND CINCINNATI UNLIKE HER PAINTINGS MUCH OF THIS WORK DEPENDS UPON THE MOST LABYRINTHINE METHODS WE LEARN FROM A WALL LABEL THAT THE LITHOGRAPH MIRABELLE WAS MADE FROM 24 DIFFERENT COLOR PLATES YET THE PRINTS HAVE AN APPEALINGLY TOSSEDOFF LOOK AS IF THE ARTIST DID EVERYTHING IN A HURRY ANYONE ALREADY FAMILIAR WITH THE IMAGERY OF MS FRANKENTHALER'S PAINTINGS WILL FIND THAT HER PRINTS FOLLOW THE SAME ARC OF DEVELOPMENT WE WATCH AS THE SPARE CASUAL ABSTRACTIONS OF THE '60S WHICH MIGHT CONSIST OF A FEW BANNERS OF COLOR UNFURLED ACROSS A WHITE SHEET OF PAPERGIVE WAY TO THE OPULENCE OF THE '80S WHEN WAVES OF PIGMENT FLOOD THE PAGE LIKE A FEVERISH UNDERWATER DREAM ALTHOUGH THE PRINTS DON'T REVEAL ANYTHING NEW ABOUT MS FRANKENTHALER'S SENSIBILITY THEY HAVE A PERSONALITY ALL THEIR OWN SMALLER IN SIZE THAN HER OTHER WORK THEY FEEL FRIENDLIER AND MORE APPROACHABLE AND ARE FREE OF THE GRANDIOSITY THAT HAS MARRED SOME OF HER RECENT PAINTINGS IN GENERAL HER WORK LOOKS UNPRETENTIOUS COMPARED WITH MOST PAINTINGS OF THE COLOR FIELD SCHOOL WHICH HER POURED ABSTRACTIONS ARE OFTEN SAID TO HAVE SPAWNED IN THE '60S WITH EACH PASSING YEAR THE COLORFIELD MOVEMENT SEEMS LESS AND LESS WORTHWHILE JULES OLITSKI ONE OF ITS MOST PROMINENT MEMBERS WAS ONCE SINGLED OUT BY MR GREENBERG AS THE GREATEST LIVING PAINTER AND THE RIGHTFUL HEIR TO THE GLORIOUS ABSTRACT TRADITIONS OF PARIS YET IT'S HARD TO KNOW WHO TAKES THIS VERDICT SERIOUSLY TODAY OTHER THAN SALANDER O'REILLY GALLERIES IN MANHATTAN WHERE MR OLITSKI'S NEW WORK IS ON VIEW THROUGH SATURDAY IN RECENT PAINTINGS THE DOZEN OR SO PAINTINGS IN THE OLITSKI SHOW MIGHT BE DESCRIBED AS RHYTHMIC LAVATHICK MOUNDS OF ACRYLIC PIGMENT ARRANGED IN SWIRLING BRUSHY PATTERNS THEY'RE SUPPOSED TO BE SPONTANEOUS BUT INSTEAD SEEM LIKE AN ILLUSTRATION OF SPONTANEITY MR OLITSKI REPRESENTS ABSTRACT PAINTING AT ITS MOST ACADEMIC AND UNWITTINGLY SHOWS WHY MANY YOUNGER MEMBERS OF THE ART WORLD HAVE LOST INTEREST IN THE FUTURE OF ABSTRACT PAINTING THEY SHOULD TAKE A LOOK AT THE WORK OF JOAN MITCHELL SHE WAS NEVER TOUTED BY MR GREENBERG BUT SHE DID MORE TO KEEP ABSTRACT PAINTING ALIVE IN THE '90S THAN ALMOST ANY OTHER ARTIST I CAN THINK OF MITCHELL DIED IN OCTOBER AT THE AGE OF 67 ROBERT MILLER GALLERY IN MANHATTAN IS CURRENTLY SHOWING JOAN MITCHELL 1992 THROUGH MAY 8 HER FINAL PAINTINGS NINE IN ALL AND THEY ARE STARTLING IN THEIR FRESHNESS AND VIGOR THE RADIANT YELLOWS AND BLUES THE STABBING BRUSH STROKES THE FREELY RUNNING DRIPS THIS IS THE WORK OF A WOMAN WHO WAS FULLY ALIVE AS A PAINTER EVEN AS HER HEALTH FAILED MITCHELL NEVER LOST THE SUMPTUOUS ELOQUENT WAY WITH A BRUSH THAT SHE PICKED UP AS A YOUNG WOMAN DURING THE HEYDAY OF ABSTRACT EXPRESSIONISM IN 1959 SHE MOVED TO FRANCE AND EVENTUALLY SETTLED IN THE TOWN OF VETHEUIL NORTH OF PARIS THERE SHE LIVED NEAR PROPERTY ONCE OWNED BY CLAUDE MONET THOUGH HATED HEARING ABOUT IT AND SHE TETHERED HER WORK TO THE LANDSCAPE HER SUNNY COLORS AND TANGLES OF BRUSH STROKES MIGHT SUGGEST SUNFLOWERS BEING BENT BY THE WIND OR GRASSES WAVING IN A MARSH MITCHELL WAS NOTORIOUSLY CANTANKEROUS AND ALIENATED MOST EVERYONE SHE KNEW BY THE END OF HER LIFE AT A MEMORIAL SERVICE HELD EARLIER THIS MONTH HER FRIEND MARION SOMERS STOOD UP AND TOLD THE CROWD THAT SHE HAD TALKED TO MITCHELL SHORTLY BEFORE HER DEATH AND THEY DISCUSSED WHAT WAS TO BE SAID AT THE SERVICE MITCHELL WAS CONCERNED ABOUT THE QUESTION OF AN AFTERLIFE IN CASE THERE'S ACTUALLY LIFE AFTER DEATH SHE WANTED TO BE ELIGIBLE BUT SHE COULDN'T HOPE FOR SPIRITUAL IMMORTALITY SHE REASONED IF HER FRIENDS CONTINUED TO RESENT HER SO SHE REQUESTED THAT ALL THOSE AT THE SERVICE CLOSE THEIR EYES THINK OF THE CRUELEST THING SHE EVER SAID TO THEM AND THEN FORGIVE HER HER LAST WORDS TO THEM WERE I LOVE YOU ALL WHETHER OR NOT THERE IS AN AFTERLIFE MITCHELL'S ART WILL LIVE ON AND ON 9304280002 930428 ALLERGAN SHAREHOLDERS PASS PROPOSAL FORCING VOTE ON POISON PILL' IRVINE CALIF ALLERGAN INC SHAREHOLDERS APPROVED A PROPOSAL OPPOSED BY THE COMPANY DEMANDING THAT IT SUBMIT ITS POISON PILL SHAREHOLDER RIGHTS PLAN TO A BINDING VOTE OF THE HOLDERS THE PROPOSAL MADE BY THE STATE OF WISCONSIN INVESTMENT BOARD GARNERED 52 OF THE VOTES CAST AT THE ANNUAL MEETING YESTERDAY IT NEEDED A MAJORITY TO PASS IT WAS ONE OF THE FIRST SUCCESSFUL SHAREHOLDER SOLICITATIONS UNDER NEW LOOSER RULES ADOPTED IN OCTOBER BY THE SECURITIES AND EXCHANGE COMMISSION THE MEASURE ISN'T BINDING ON THE EYECARE PRODUCTS CONCERN AFTER THE MEETING A SPOKESMAN REITERATED THAT MANAGEMENT RECENTLY ADVISED THE BOARD TO UNDERTAKE AN ORDERLY PROFESSIONAL REVIEW OF THE POISON PILL THE BOARD WAS MEETING LATE YESTERDAY TO DISCUSS THE RECOMMENDATION AMONG OTHER MATTERS THE SPOKESMAN SAID WHILE INSTITUTIONAL INVESTORS HAVE PLACED VARIOUS PROPOSALS BEFORE SHAREHOLDERS IN RECENT YEARS IT WASN'T UNTIL THE RULES CHANGED LAST YEAR THAT INVESTORS BEGAN AGGRESSIVELY SEEKING SUPPORT FROM OTHER HOLDERS SAID SARAH TESLIK EXECUTIVE DIRECTOR OF THE COUNCIL OF INSTITUTIONAL INVESTORS IN WASHINGTON THE NEW RULES PROBABLY TIPPED THE BALANCE IN OUR FAVOR SAID PATRICIA LIPTON EXECUTIVE DIRECTOR OF THE WISCONSIN BOARD WHICH OVERSEES ABOUT 33 BILLION IN PENSION FUNDS THE WISCONSIN FUND WITH ABOUT 24 OF ALLERGAN STOCK SENT OUT ABOUT 160 LETTERS TO HOLDERS AND CONTACTED A HANDFUL OF MONEY MANAGERS BY TELEPHONE SEPARATELY ALLERGAN SAID LEONARD D SCHAEFFER THE 47YEAROLD CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF BLUE CROSS OF CALIFORNIA WAS ELECTED TO THE BOARD HIS APPOINTMENT FILLS A VACANCY 9304280001 930428 WHAT'S NEWS BUSINESS AND FINANCE THE US SOLD YEN FOR DOLLARS AFTER THE DOLLAR HIT A POSTWAR LOW OF 10933 YEN THE CLINTON ADMINISTRATION'S FIRST INTERVENTION IN THE FOREIGNEXCHANGE MARKETS WAS MEANT TO DEFUSE TENSIONS WITH JAPAN ON THE EVE OF THIS WEEK'S GROUP OF SEVEN MEETING IN LATE TRADING THE DOLLAR STOOD HIGHER AT 11167 YEN AND 15830 MARKS UP FROM 11055 YEN AND 15688 MARKS ARTHUR LEVITT WAS CHOSEN TO BE CHAIRMAN OF THE SECURITIES AND EXCHANGE COMMISSION BY CLINTON LEVITT IS A PUBLISHER AND A FORMER CHAIRMAN OF THE AMERICAN STOCK EXCHANGE CLINTON APPEARED TO RESPOND TO CRITICISM FROM BUDGET DIRECTOR PANETTA WITH TOUGH DEFICIT TALK AND A REQUEST FOR PUBLIC SUPPORT FOR LEGISLATION THAT WOULD INCREASE HIS ABILITY TO DELETE ITEMS FROM APPROPRIATIONS BILLS KLM ROYAL DUTCH AIRLINES SWISSAIR SCANDINAVIAN AIRLINES SYSTEM AND AUSTRIAN AIRLINES SAID THEY PLAN TO MERGE A MOVE THAT WOULD CREATE EUROPE'S SECONDLARGEST AIRLINE AND THE WORLD'S SEVENTHLARGEST CARRIER CONSUMER CONFIDENCE JUMPED IN APRIL REVERSING THREE MONTHS OF FADING OPTIMISM BUT THE LATEST SURVEY ALSO FOUND 41 OF RESPONDENTS SAID JOBS WERE HARD TO GET SEPARATELY WORKERS' WAGES BENEFITS AND SALARIES ROSE 1 IN THE FIRST QUARTER COMPARED WITH A 09 RISE IN THE PRIOR QUARTER ATTORNEY CLARK CLIFFORD ADVISED TOP OFFICIALS OF BCCI ON HOW TO CONCEAL THE BANK'S 1982 TAKEOVER OF FIRST AMERICAN BANKSHARES IN WASHINGTON A KEY GOVERNMENT WITNESS SAID A BIG BAXTER INTERNATIONAL CUSTOMER THREATENED TO CURTAIL MILLIONS OF DOLLARS IN BUSINESS WITH BAXTER OVER THE HOSPITAL SUPPLIER'S VIOLATION OF A FEDERAL LAW AGAINST COOPERATING WITH THE ARAB BOYCOTT OF ISRAEL BOND PRICES FELL WHILE STOCKS ROSE THE YIELD ON THE TREASURY'S 30YEAR BENCHMARK BOND ROSE TO 69 THE DOW JONES INDUSTRIALS GAINED 1756 POINTS TO 341593 BREAKING A STREAK OF SIX CONSECUTIVE LOSING SESSIONS MOBIL AND CHEVRON POSTED PROFITS FOR THE FIRST QUARTER REVERSING LOSSES AND CONTINUING THE INDUSTRY'S TREND TOWARD IMPROVED PROFIT MARGINS IN DOMESTIC AND NATURAL GAS MARKETS BORLAND INTERNATIONAL REPORTED A PROFIT FOR THE LATEST QUARTER THAT WAS WELL ABOVE ANALYSTS' EXPECTATIONS THE PC SOFTWARE SUPPLIER'S RESULTS WERE ANNOUNCED AFTER THE MARKETS CLOSED P&G POSTED BETTERTHANEXPECTED EARNINGS FOR THE LATEST QUARTER REFLECTING COSTCUTTING MEASURES BUT SALES FELL 2 HURT BY SLOW CONSUMER SPENDING AND PRIVATELABEL COMPETITION THE SEC CLEARED THE WAY FOR USREGISTERED MUTUAL FUNDS TO INVEST IN CHINA'S FLEDGLING STOCK MARKETS A MOVE LIKELY TO BE INTERPRETED AS A VOTE OF CONFIDENCE IN CHINA'S MARKETS US SURGICAL'S SHARES CLIMBED 325 OR 11 TO 32 AFTER THE SURGICAL PRODUCTS COMPANY PREDICTED THAT 1993 EARNINGS WILL BE AT THE HIGH END OF ANALYSTS' RECENTLY REVISED ESTIMATES BANKS FINANCING THE CANARY WHARF OFFICE COMPLEX IN LONDON AGREED IN PRINCIPLE TO PUT UP AN EXTRA 792 MILLION IN CREDIT TO GET THE PROJECT BACK INTO OPERATION UNDER THEIR OWNERSHIP TOKYO STOCKS SOARED AS INVESTORS SHRUGGED OFF RECENT WORRIES ABOUT THE RISING YEN THE NIKKEI INDEX SHOT UP 58308 POINTS OR 3 TO 2020671 THE SURGE TOOK THE INDEX ABOVE 20000 FOR THE FIRST TIME IN MORE THAN A WEEK BONDS LEHMAN BROTHERS TREASURY INDEX 505475 OFF 3763 COMMODITIES OIL 2018 A BARREL OFF 12 CENTS DOW JONES FUTURES INDEX 12524 UP 006 SPOT INDEX 12227 UP 037 DOLLAR 11167 YEN UP 112 15830 MARKS UP 00142 9304270189 930427 REVIEW & OUTLOOK EDITORIAL FIGHT THE POWER MORE EVIDENCE THAT THE SCHOOL UNIONS ARE MAINLY ABOUT POWER AND NOT ABOUT EDUCATION COULD BE GLEANED FROM CALIFORNIA LAST WEEK THERE THE TEACHERS' LOBBY AND ITS PARTISAN CHAMPION ASSEMBLY SPEAKER WILLIE BROWN TEAMED UP TO REJECT A NOMINEE FOR STATE SUPERINTENDENT ON THE CRASSEST POLITICAL GROUNDS MARIAN BERGESON A FORMER TEACHER AND SCHOOL BOARD MEMBER HERSELF HAS TOED THE EDUCATION ESTABLISHMENT'S LINE IN HER 17 YEARS AS A REPUBLICAN LEGISLATOR ABOUT AS CLOSELY AS A MODERATELY CONSERVATIVE SUBURBANITE COULD DO FOR THIS REASON THE CALIFORNIA TEACHERS ASSOCIATION INITIALLY REMAINED NEUTRAL WHEN GOVERNOR PETE WILSON CHOSE HER TO FILL AN UNEXPIRED TERM DEMOCRAT BROWN HOWEVER MADE IT CLEAR THAT NO REPUBLICAN WOULD BE ACCEPTABLE IN THE POST ESPECIALLY MRS BERGESON A SOMETIMES FEISTY SORT WHO HAS CHALLENGED HIS IMPERIAL AUTHORITY ONE MEMORABLE SHOUTING MATCH OCCURRED WHEN SHE TRIED TO GET THROUGH A BILL CONTRACTING OUT THE JOBS OF GROSSLY OVERPAID STATE HIGHWAY CREWS ONE OF MR BROWN'S PRIZED UNION CONSTITUENCIES NO UNION IS MORE DEAR TO THE SPEAKER THAN THE TEACHERS HOWEVER AND HE TO THEM MR BROWN HAS FOUGHT FOR THEIR PAY AGAINST EVERY COMPETING INTEREST INCLUDING CHILDREN'S TEXTBOOKS SO WHEN MR BROWN PUT ON THE HEAT THE TEACHERS SUDDENLY JOINED THE BERGESON OPPOSITION THE NOMINATION WENT DOWN WITH ONLY THREE OF THE MAJORITY DEMOCRATS IN THE ASSEMBLY CROSSING OVER TO SUPPORT MRS BERGESON JUST AS IN THE US CONGRESS THE SUPPOSEDLY PRAGMATIC FRESHMAN CLASS OF DEMOCRATS IN SACRAMENTO IS AS SLAVISHLY PARTISAN AS ANY PREVIOUS BUNCH FAIRMINDED CALIFORNIANS NOW OUGHT TO BE ABLE TO SEE THAT NO RECORD OF CONCERN FOR THE PUBLIC SCHOOLS IS ENOUGH FOR THE LOBBY IT WANTS ONLY MONEY AND POWER THE SAME IS TRUE ELSEWHERE IN THE US CALIFORNIA IS BLESSED WITH AN OUT HOWEVER NEXT YEAR IT CAN ADOPT A SCHOOLCHOICE INITIATIVE THAT WOULD CUT AT THE HEART OF THE WILLIE BROWNTEACHER UNION AXIS BY PROVIDING PARENTS OF ALL INCOMES WITH A VOUCHER ALTERNATIVE TO THIS SORRY SYSTEM 9304270188 930427 NORANDA FOREST UNIT PLANS MILL TORONTO NORBORD INDUSTRIES INC A UNIT OF NORANDA FOREST INC SAID IT PLANS TO BUILD AN ORIENTED STRUCTURAL BOARD MILL NEAR TUPELO MISS FOR ABOUT 80 MILLION THE PROJECT IS SUBJECT TO FINAL APPROVAL BY NORANDA FOREST'S BOARD AND BY LOCAL AND STATE REGULATORY AGENCIES THE MILL WHICH COULD BE COMPLETED BY 1995 IS DESIGNED TO PRODUCE UP TO 24 BILLION SQUARE FEET OF STRUCTURAL PANEL A YEAR AND WOULD EMPLOY ABOUT 150 PEOPLE 9304270187 930427 NATIONAL CITY TO REALIZE SAVINGS CLEVELAND NATIONAL CITY CORP AT ITS ANNUAL MEETING IN LOUISVILLE KY SAID IT WILL REALIZE MORE THAN 30 MILLION IN COST SAVINGS THIS YEAR AS A RESULT OF THE INTEGRATION OF INDIANABASED MERCHANTS NATIONAL CORP WHICH IT ACQUIRED LAST YEAR THIS HAS BEEN OUR MOST SUCCESSFUL ACQUISITION INTEGRATION TO DATE SAID NATIONAL CITY'S CHAIRMAN AND CHIEF EXECUTIVE EDWARD B BRANDON MR BRANDON SAID THE PENDING ACQUISITION OF OHIO BANCORP A RETAILORIENTED BANK BASED IN YOUNGSTOWN OHIO WILL EXTEND NATIONAL CITY'S EXISTING EASTERN OHIO MARKETS NATIONAL CITY EXPECTS CONTINUED STRONG EARNINGS HE SAID NOTING THAT 1993 FIRSTQUARTER NET INCOME INCREASED 16 OVER LAST YEAR TO 95 MILLION OR 113 A SHARE 9304270186 930427 IVAX SETS ACQUISITION MIAMI IVAX CORP WHICH MAKES SPECIALTY CHEMICALS PHARMACEUTICALS AND MEDICAL DIAGNOSTICS MATERIALS SAID IT SIGNED AN ACCORD TO BUY THE INDUSTRIAL CHEMICAL UNIT OF ELF ATOCHEM NORTH AMERICA INC FOR 58 MILLION UNDER THE PACT IVAX WOULD BUY TWO MANUFACTURING PLANTS TRADEMARKS PATENTS AND INVENTORIES FROM THE JANITORIAL AND TEXTILE CHEMICALS BUSINESSES OF ELF ATOCHEM THE US UNIT OF ELF AQUITAINE AN OIL AND GAS CONCERN IN FRANCE IVAX WOULD PAY 45 MILLION IN ITS COMMON SHARES AND 13 MILLION IN CASH THE DEAL IS SUBJECT TO THE APPROVAL OF REGULATORS AND THE COMPANIES' DIRECTORS 9304270185 930427 MCI WINS BANK OF AMERICA PACT WASHINGTON MCI COMMUNICATIONS CORP SAID IT WON ITS LARGEST PROJECTED COMMERCIAL AGREEMENT EVER WHEN IT WAS PICKED BY BANK OF AMERICA AS THE BANK'S PRIMARY LONGDISTANCE CARRIER TERMS OF THE AGREEMENT WEREN'T DISCLOSED ALTHOUGH AN MCI OFFICIAL SAID IT'S EXPECTED TO BE LARGER THAN A FOURYEAR 250 MILLION LONGDISTANCE CONTRACT SIGNED LAST YEAR WITH CITICORP A SPOKESMAN FOR BANK OF AMERICA THE PRINCIPAL SUBSIDIARY OF BANKAMERICA CORP IN SAN FRANCISCO SAID THE BANK'S PRIMARY LONGDISTANCE CARRIER HAD BEEN AMERICAN TELEPHONE & TELEGRAPH CO HE SAID AT&T WOULD CONTINUE TO PROVIDE SOME SERVICES BUT DECLINED TO BE SPECIFIC 9304270184 930427 TELEPHONE UNIT'S DEBENTURES BALTIMORE THE CHESAPEAKE & POTOMAC TELEPHONE CO OF MARYLAND SAID IT WILL REDEEM ALL OUTSTANDING 35YEAR 875 DEBENTURES WITH A 100 MILLION FACE VALUE DUE JUNE 1 2009 THE DEBENTURES WILL BE REDEEMED MAY 22 AT A PRICE OF 10323 OF THEIR PRINCIPAL AMOUNT PLUS ACCRUED INTEREST FROM DEC 1 1992 C&P OF MARYLAND IS ONE OF SEVEN OPERATING TELEPHONE COMPANIES OWNED BY BELL ATLANTIC CORP OF PHILADELPHIA 9304270183 930427 JACOR CONTROL TRANSFER APPROVED CINCINNATI JACOR COMMUNICATIONS INC SAID THE FEDERAL COMMUNICATIONS COMMISSION APPROVED THE TRANSFER OF CONTROL OF THE COMPANY TO ZELL/CHILMARK FUND LP AS A RESULT ALL NONVOTING STOCK OUTSTANDING HAS BECOME VOTING STOCK AND ZELL/CHILMARK NOW OWNS 9348 OF VOTING SHARES OUTSTANDING ACCORDING TO JACOR A RADIO AND CABLE TELEVISION COMPANY 9304270182 930427 LVMH PROPOSES STOCK SPLIT PARIS FRENCH LUXURY GOODS GROUP LVMH MOET HENNESSY LOUIS VUITTON SA SAID IT WILL PROPOSE A 5FOR1 STOCK SPLIT TO SHAREHOLDERS AT ITS NEXT HOLDERS' MEETING JUNE 10 LVMH SAID THE MOVE HAD BEEN REQUESTED BY A NUMBER OF SHAREHOLDERS CONSIDERING THE STOCK'S HIGH PRICE ON MONDAY LVMH SHARES CLOSED AT 3641 FRANCS 681 LVMH DIDN'T SAY WHEN IT PLANS FOR THE SPLIT TO TAKE PLACE THE SPLIT WOULD REDUCE THE NOMINAL VALUE OF LVMH SHARES TO 10 FRANCS FROM 50 FRANCS 9304270181 930427 WHO'S NEWS SMITHKLINE BEECHAM NAMES NEW LEADERSHIP BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL SMITHKLINE BEECHAM PLC OUTLINED A LONGAWAITED MANAGEMENT SUCCESSION BUT THE ANGLOAMERICAN DRUG GIANT SAID THE CHANGES WON'T OCCUR FOR A YEAR THE UKBASED SMITHKLINE SAID CHAIRMAN HENRY WENDT AND CHIEF EXECUTIVE ROBERT BAUMAN WILL STEP DOWN AFTER NEXT APRIL'S ANNUAL MEETING SIR PETER WALTERS A COMPANY DIRECTOR SINCE 1989 THEN WILL BECOME NONEXECUTIVE CHAIRMAN SUCCEEDING MR WENDT SIR PETER 61 YEARS OLD IS A FORMER CHIEF EXECUTIVE AND CHAIRMAN OF BRITISH PETROLEUM PLC AND IS A DEPUTY CHAIRMAN OF HONGKONG & SHANGHAI BANKING CORP THE BANK GROUP OWNED BY HSBC HOLDINGS PLC AS EXPECTED MR BAUMAN WILL BE SUCCEEDED BY JAN LESCHLY AN INTENSE 52YEAROLD DANE WHO HAS HEADED SMITHKLINE'S FLAGSHIP PHARMACEUTICAL DIVISION THE PAST THREE YEARS COMMENTING ON THE LONG TRANSITION PERIOD WHICH SURPRISED SOME ANALYSTS MR BAUMAN ACKNOWLEDGED IN A PHONE INTERVIEW THAT A MAJORITY OF COMPANIES WOULDN'T USE THIS APPROACH BUT NAMING SOMEONE ALL OF A SUDDEN DEPRIVES THEM OF THE BENEFITS OF WORKING WITH DEPARTING MANAGEMENT TO LEARN THE BUSINESS AND THE CUSTOMERS THE BOARDROOM SHUFFLE MARKS THE END OF AN ERA AT SMITHKLINE WHICH WAS CREATED IN 1989 THROUGH A MEGAMERGER JOINING BRITAIN'S BEECHAM PLC AND SMITHKLINE BECKMAN CORP A US COMPANY MR WENDT WAS CHAIRMAN OF SMITHKLINE BECKMAN AND INHERITED THE JOB AT THE MERGED ENTITY BUT UNDERSCORING THE UNEXPECTEDLY SMOOTH IMPLEMENTATION OF THE GIANT CORPORATE MARRIAGE HE SCALED BACK HIS INVOLVEMENT TO PARTTIME CHAIRMAN LAST YEAR WITH THE MERGER OVER THE TIME IS APPROPRIATE TO MAKE MANAGEMENT CHANGES BEFORE YOU STAY TOO LONG QUIPPED MR BAUMAN 62 MR BAUMAN HAS WORKED HARDER THAN MOST EUROPEAN PHARMACEUTICAL EXECUTIVES TO CULTIVATE GOOD RELATIONS WITH FINANCIAL ANALYSTS AND INVESTORS STEADY EARNINGS GROWTH SQUARELY IN LINE WITH COMPANY FORECASTS HAVE EXEMPLIFIED HIS TENURE AND CLEARLY BUOYED CONFIDENCE IN THE MERGED COMPANY INDUSTRY ANALYSTS SAY SMITHKLINE TAPPED JEANPIERRE GARNIER PRESIDENT OF PHARMACEUTICAL DIVISION OPERATIONS IN NORTH AMERICA TO SUCCEED MR LESCHLY AS CHAIRMAN OF THE PHARMACEUTICAL DIVISION DR GARNIER A 45YEAROLD FRENCHMAN SPENT 15 YEARS WITH US DRUGMAKER SCHERINGPLOUGH CORP BEFORE MOVING TO SMITHKLINE IN 1990 JERRY KARABELAS THE 40YEAROLD MARKETING DIRECTOR OF SMITHKLINE'S NORTH AMERICAN UNIT WILL SUCCEED DR GARNIER NEXT YEAR IN AN INTERVIEW MR LESCHLY INSISTED HE DOESN'T ANTICIPATE ANY MAJOR CHANGES IN SMITHKLINE'S CORPORATE STRUCTURE WHICH INCLUDES DIVISIONS FOR PRESCRIPTION PHARMACEUTICALS ANIMAL HEALTH CONSUMER GOODS AND CLINICAL LABORATORIES THE WAY THE WHOLE BUSINESS IS HEADING THESE DAYS HE SAID IT'S A STRENGTH THAT THIS COMPANY FITS SO WELL TOGETHER 9304270180 930427 WHO'S NEWS TRITON ENERGY CORP TRITON ENERGY CORP DALLAS PETER RUGG 46 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS OIL AND GAS EXPLORATION AND PRODUCTION COMPANY HE SUCCEEDS ROBERT PUETZ AS CHIEF FINANCIAL OFFICER 9304270179 930427 BUSINESS BRIEF CUMMINS ENGINE NET SURGES IN 1ST QUARTER LED BY STRONG SALES COLUMBUS IND CUMMINS ENGINE CO REPORTED SHARPLY HIGHER EARNINGS ON THE STRENGTH OF A CONTINUING UPTURN IN DIESELENGINE SALES TO HEAVYTRUCK MAKERS AND STRENGTHENING SHIPMENTS OF MIDRANGE MOTORS THE COMPANY'S FIRSTQUARTER NET WAS 411 MILLION OR 224 A SHARE IN THE YEARAGO PERIOD CUMMINS HAD EARNINGS OF 5 MILLION OR 20 CENTS A SHARE BEFORE A BIG CHARGE FOR ACCOUNTING CHANGES REDUCED NET TO A LOSS OF 2461 MILLION OR 1666 A SHARE CUMMINS' SALES JUMPED 19 IN THE LATEST PERIOD TO 105 BILLION FROM 8813 MILLION THE REBOUND THAT GOT UNDER WAY IN THE NORTH AMERICAN HEAVYTRUCK MARKET IN THE LATTER PART OF LAST YEAR GENERATED A SUBSTANTIAL INCREASE IN HEAVYTRUCK ENGINES CUMMINS SAID IN ADDITION SALES OF THE COMPANY'S MIDRANGE ENGINES CONTINUED TO GROW PART OF THAT YEARTOYEAR GROWTH SPRINGS FROM AN AGREEMENT NOW IN PLACE FOR THREE QUARTERS TO PROVIDE FORD MOTOR CO WITH ENGINES FOR ITS MEDIUMDUTY COMMERCIAL TRUCKS ALSO CONTRIBUTING WAS A SUBSTANTIAL INCREASE IN CUMMINS' BUS AND LIGHT COMMERCIAL LINES PRIMARILY DUE TO INCREASED SALES OF DIESEL ENGINES TO CHRYSLER CORP FOR USE IN SOME DODGE RAM PICKUPS ASSUMING ECONOMIC CONDITIONS DON'T DETERIORATE CUMMINS EXPECTS SECONDQUARTER SALES AND EARNINGS WILL TOP THOSE OF THE PERIOD JUST ENDED THE COMPANY'S IMPROVING FORTUNES AREN'T UNIFORM CUMMINS NOTED THAT SALES IN SOME INTERNATIONAL MARKETS PARTICULARLY THE UNITED KINGDOM REMAINED DEPRESSED AND THAT ITS LINE OF POWERGENERATION EQUIPMENT ALSO HAS SEEN REDUCED OVERSEAS DEMAND SEPARATELY CUMMINS DISCLOSED THAT MEMBERS OF THE DIESEL WORKERS UNION AN INDEPENDENT UNION REPRESENTING ALL 3100 CUMMINS PRODUCTION WORKERS IN INDIANA VOTED TO APPROVE A CONTRACT THAT WON'T EXPIRE UNTIL THE YEAR 2004 THE CONTRACT CALLS FOR AMONG OTHER THINGS ADJUSTMENTS IN HEALTHCARE BENEFITS AND WORKRULE CHANGES AIMED AT BOOSTING EFFICIENCIES 9304270178 930427 LEISURE & ARTS TINA BARNEY TAKES AIM AT THE BIG BOARD BY AMY GAMERMAN NEW YORK LIKE MOST OF US TINA BARNEY LIKES TO TAKE PICTURES OF HER FAMILY AND FRIENDS AT PARTIES AND COOKOUTS OR JUST HANGING AROUND THE HOUSE BUT WHILE OUR SNAPSHOTS END UP ON THE REFRIGERATOR DOOR MS BARNEY'S 4FOOTBY5FOOT PHOTOGRAPHS OF UPPERCRUST EAST COASTERS LIKE HERSELF ARE COLLECTED BY THE MUSEUM OF MODERN ART NEW PICTURES FROM MS BARNEY'S ALBUM CAN BE SEEN AT THE JANET BORDEN GALLERY HERE THROUGH MAY 1 SUMPTUOUSLY LIT AND RICHLY COLORED THE HUGE PHOTOGRAPHS ALMOST INVITE YOU TO WALK INTO THEM TO ENTER THE ENCLAVES OF PRIVILEGE TO WHICH THE 47YEAROLD MS BARNEY A DESCENDANT OF THE LEHMAN BANKING CLAN BELONGS ON SECOND GLANCE YOU WONDER IF YOU'D WANT TO THE THREE YOUNG MEN IN SPORTS JACKETS LAZING ABOUT AN OCEANSIDE PARLOR SEEM PARALYZED WITH BOREDOM OR SOMETHING WORSE SLUMPED IN A CHAIR ONE BURIES HIS FACE IN HIS HAND AND THE FAMILY MEMBERS GATHERED FOR THE CHRISTENING SEEM AS LIFELESS AS WAXWORK FIGURES COSTUMED IN NAVYS AND PLAIDS FROM TALBOTS MS BARNEY'S CAMERA SEEKS OUT THE TENSIONS THAT PULSE WITHIN THESE TASTEFULLY FURNISHED ROOMS INVITING YOU TO GUESS AT THE STORIES ENACTED THERE AMONG PEOPLE SHE KNOWS SO WELL BUT LATELY MS BARNEY HAS GOTTEN A LITTLE RESTLESS IN THOSE CHINTZCOVERED PARLORS SO SHE'S FOLLOWED A FEW OF HER FAVORITE SUBJECTS INTO THE EQUALLY EXCLUSIVE PLACES WHERE THEY WORK SISTER JILL PHOTOGRAPHED IN THE PAST IN HER BEDROOM AND BATHROOM IS NOW PICTURED IN THE TONY MANHATTAN REALTY OFFICE WHERE SHE LABORS DEALING WITH A SOCIAL XRAY CLIENT AND MS BARNEY'S OLD FRIENDS JOHN O'DONNELL AND DAVID SHIELDS ARE CAPTURED IN THEIR FULL GLORY AS TRADERS ON THE NEW YORK STOCK EXCHANGE FOR THIS INVESTMENT BANKER'S DAUGHTER THE VERY APOTHEOSIS OF THE WORKPLACE IN THE PHOTOGRAPH REPRODUCED HERE MESSRS SHIELDS AND O'DONNELL ARE SEEN ARD AT WORK ON THE CROWDED TRADING FLOOR MR O'DONNELL IS THE BALDING GENTLEMAN MAKING A BID MR SHIELDS IS THE ONE SCRIBBLING THESE ARE MEN ENGAGED IN THE SERIOUS BUSINESS OF MAKING MONEY THE MONEY THAT PAYS FOR THE ELEGANT INTERIORS MS BARNEY HAS MADE FAMOUS THEY'RE ALSO MEN SHE KNOWS INTIMATELY FOR 25 AND 30 YEARS RESPECTIVELY SHE HAS PHOTOGRAPHED THEM AND THEIR FAMILIES MANY TIMES MR O'DONNELL'S WIFE FEATURES IN SHEILA IN THE GARDEN A VIVID CLOSEUP PORTRAIT SO RIFE WITH ANXIETY THAT IT PROVOKED SOME TO TAG MS BARNEY THE DAVID LYNCH OF THE UPPER CRUST THEY'VE ALL SUMMERED TOGETHER FOR YEARS AT WATCH HILL RI A WEALTHY OCEANSIDE TOWN WHERE MS BARNEY'S CAMERA IS A REGULAR FIXTURE SHE'LL COME SAILING WITH US OR GO ON THE FISHING BOAT WITH US OR SOMETHING LIKE THAT SAID MR SHIELDS MANAGING DIRECTOR OF SHIELDS & CO IF YOU INVITE TINA YOU EXPECT SHE'S GOING TO COME WITH HER CAMERA BUT THIS TIME AROUND MS BARNEY WANTED TO DO SOMETHING DIFFERENT SO WITH THE HELP OF HER PALS SHE WANGLED PERMISSION TO BRING HER 4INCHBY5INCH TOYO FIELD CAMERA ON THE FLOOR OF THE EXCHANGE FOR TWO SHOOTING EXPEDITIONS THE LAST OF WHICH TOOK PLACE IN DECEMBER A SKINNY BLONDE WITH THE WEATHERED LOOK OF SOMEONE WHO SPENDS HER SUMMERS BY THE SEA AND HER WINTERS SKIING SHE SHOWED UP CLAD IN A PLAID FLANNEL SKIRT WITH A LOUPE SWINGING FROM HER NECK SHE AND HER ASSISTANT CHRISTOPHER SHIPLEY LUGGED CAMERA TRIPOD AND A KNAPSACK OF FILM INTO THE EXCHANGE'S GARAGE AN EQUITIES TRADING ROOM OFF THE MAIN FLOOR MR SHIPLEY WHO'S MARRIED TO MS BARNEY'S DEALER JANET BORDEN AND IS A PHOTOGRAPHER HIMSELF HAD WISELY WORN A TIE WHEN HE SHOWED UP TIELESS ON THEIR FIRST FORAY HE WASN'T ALLOWED ON THE FLOOR A BORROWED RUNNER'S JACKET HELPED HIM SQUEAK PAST THE EXCHANGE DRESS CODE MR SHIELDS HAD ALSO DRESSED UP FOR THE OCCASION ON MS BARNEY'S INSTRUCTIONS HE WAS WEARING A LIGHTCOLORED SUIT TO BREAK UP THE SEA OF NAVY AND DARK GRAY AND HE HAD CHANGED FROM THE COMFORTABLE SHOES HE USUALLY WEARS ON THE FLOOR TO NATTIER LACEUPS HE SEEMED UNFAZED BY THIS LATEST SESSION IN FRONT OF MS BARNEY'S LENS I'VE BEEN IN A COUPLE MIRAGE' TAKEN ON JOHN'S BOAT BUT SHE'S NEVER GOTTEN ANYBODY ON MY SAILBOAT THE ZEPHYR HE COMPLAINED TINA YOU'VE NEVER DONE ANYTHING ON MY SAILBOAT BUT MS BARNEY WAS BUSY SETTING UP HER TRIPOD AND AFFIXING THE BLACK DARKCLOTH TO THE CAMERA SHE WOULD ONLY HAVE HALF AN HOUR TO WORK OVERSEEN THE WHOLE TIME BY AN EXCHANGE OFFICIAL I'M GOING TO TRY TO SLOW DOWN SHE SAID LAST TIME I WAS SO EXCITED MY HEART WAS BEATING I WAS SHAKING IT WAS LIKE BEING IN FORBIDDEN TERRITORY FIXING THE FLASH ON HER CAMERA SHE POSITIONED HERSELF NEAR MR O'DONNELL A PARTNER IN LAWRENCE O'DONNELL MARCUS & CO SOMEONE ASKED MR SHIELDS IF HE WANTED TO MAKE A BID AS THE MEN WENT TO WORK MS BARNEY DUCKED UNDER HER DARKCLOTH AND STARTED SNAPPING MR SHIPLEY STOOD ON HER RIGHT HANDING HER FRESH SUPPLIES OF FILM AND CHIDING HER TO SLOW DOWN TO GIVE THE LIGHT TIME TO RECHARGE STILL UNDER THE DARKCLOTH MS BARNEY STARTED MOVING THE CAMERA ON ITS TRIPOD ACROSS THE PAPERSTREWN FLOOR STOPPING RUNNERS IN THEIR TRACKS A CROWD FORMED A FEW STARTED TO WAVE SMILE SOMEONE YELLED A RUNNER BROKE INTO A POSE DROPPING HIS ARM AROUND ANOTHER GUY'S SHOULDER IN FACT THE ONLY PEOPLE WHO WEREN'T STANDING AGOG WERE MESSRS SHIELDS AND O'DONNELL THESE GUYS HAVE BEEN PHOTOGRAPHED SO LONG BY ME THEY KNOW THERE'S NO POINT IN POSING SHE SAID IT WILL BE OVER FASTER IF THEY DON'T SQUAD MR O'DONNELL CRIED THE CALL FOR AN EXCHANGE MESSENGER WAVING A PIECE OF PAPER IN THE AIR WHAT DOES THAT MEAN SAID MS BARNEY STICKING HER HEAD OUT FROM THE CLOTH SHE DIRECTED MR SHIELDS TO TURN TO BREAK UP THE COMPOSITION WHAT IT LOOKS LIKE IS A LOT OF BALD HEADS SHE COMPLAINED I WISH DAVID WOULD STOP CHEWING GUM THE MOMENT OF CONTACT SHE WAS WAITING FOR BETWEEN THE TWO MEN PROVED ELUSIVE HER SUBJECTS HAD HARDLY SAID A WORD TO ONE ANOTHER LET ALONE DONE ANYTHING MORE DRAMATIC THAN SCRIBBLE ON THEIR PADS OR STARE UP AT THE MONITORS I CAN'T BELIEVE HOW MUCH TIME JOHN SPENDS LOOKING UP AT THOSE THINGS SHE MUTTERED I'D HAVE A SORE NECK THE BEST PICTURE OF THE DAY WAS NOT MS BARNEY DECLARED ONE SHE WAS ESPECIALLY PROUD OF BUT IT PROVIDES A STRONG COUNTERPART TO A MORE TRADEMARK BARNEY IMAGE IN THE SHOW OF THE O'DONNELL FAMILY AT THANKSGIVING HERE MR O'DONNELL IS A DAD IN SHABBY LEISURE WEAR BLOWING HIS NOSE AT THE VERY MARGINS OF A CROWDED KITCHEN WHERE HIS WIFE IS MAKING PIES HIS DAUGHTER CAUGHT UP IN HER OWN THOUGHTS TAKES CENTER STAGE THE CONTRAST BETWEEN THE TWO WORLDS AND THE TWO O'DONNELLS COULDN'T BE STRONGER THIS IS THE ROOT OF THE SORT OF COMFORT THE PEOPLE I PHOTOGRAPH LIVE IN SAID MS BARNEY CONTEMPLATING HER STOCK EXCHANGE PICTURE IT'S ALSO THE ROOT OF THE PROBLEMS THEY HAVE 9304270177 930427 FINANCING BUSINESS COASTAL CORP COASTAL CORP SAID IT COMPLETED AN OFFERING OF EIGHT MILLION SHARES OF CUMULATIVE PREFERRED STOCK SERIES H AT 25 A SHARE PROCEEDS FROM THE OFFERING MANAGED BY LEHMAN BROTHERS AND OTHERS WILL BE USED TO RETIRE CERTAIN SHORT AND LONGTERM DEBT OF COASTAL A HOUSTON ENERGY HOLDING COMPANY 9304270176 930427 ECONOMY IMF SAYS HESITANT' GLOBAL ECONOMY WILL EXPAND BY ONLY 22 IN 1993 BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE WORLD ECONOMY REMAINS HESITANT AND UNEVEN THE INTERNATIONAL MONETARY FUND SAID AND PROSPECTS FOR THIS YEAR ARE WORSE THAN PREDICTED BY THE IMF JUST SIX MONTHS AGO THE IMF PRAISED PRESIDENT CLINTON'S DEFICITREDUCTION PLAN AND JAPAN'S RECENTLY ANNOUNCED GOVERNMENTSPENDING PACKAGE BUT SAID FURTHER REDUCTIONS IN GERMAN INTEREST RATES ARE ESSENTIAL IN ITS SEMIANNUAL WORLD ECONOMIC OUTLOOK THE IMF FORECAST THAT THE WORLD ECONOMY WILL GROW 22 THIS YEAR SUBSTANTIALLY LESS THAN THE 36 THE IMF PREDICTED BACK IN OCTOBER DESPITE THE DOWNWARD REVISIONS THERE STILL APPEAR TO BE CONSIDERABLE DOWNSIDE RISKS THE IMF WARNED FOR NOW HOWEVER THE IMF PREDICTS THE GLOBAL ECONOMY WILL EXPAND 34 NEXT YEAR THE REPORT WAS ISSUED JUST TWO DAYS BEFORE FINANCE MINISTERS AND CENTRAL BANKERS FROM THE GROUP OF SEVEN INDUSTRIALIZED NATIONS ASSEMBLE HERE TO LOOK FOR WAYS TO SPUR WORLD GROWTH IMF ECONOMISTS MADE THEIR PRESCRIPTION CLEAR WITH THE US RECOVERY ON TRACK MR CLINTON SHOULD ABANDON HIS ATTEMPTS TO STIMULATE THE US ECONOMY WHICH THE IMF DESCRIBES AS NOW LESS NECESSARY THAN MIGHT HAVE APPEARED EARLIER AND DOUBLE THE SIZE OF HIS DEFICITREDUCTION PROPOSAL GERMANY SHOULD CUT INTEREST RATES PROMPTLY AND SIGNIFICANTLY AND JAPAN SHOULD CONTINUE TO USE ITS GOVERNMENT BUDGET TO STIMULATE DOMESTIC GROWTH CUTTING INTEREST RATES IF ECONOMIC WEAKNESS PERSISTS FOR THE US THE IMF EXPECTS THE ECONOMY TO GROW BY 32 THIS YEAR CLOSE TO WHAT IT HAD PREVIOUSLY FORECAST THE NATURAL FORCES OF RECOVERY AIDED BY EARLIER INTERESTRATE REDUCTIONS ARE TAKING HOLD IT SAID THE IMF DESCRIBED MR CLINTON'S DEFICITREDUCTION PLAN AS A CONSIDERABLE EFFORT BUT ONLY A FIRST STEP I APPRECIATE THAT HE HAD THE COURAGE TO GET RID OF TABOOS AGAINST RAISING TAXES AND TO KILL A FEW SACRED COWS A TOP IMF OFFICIAL TOLD REPORTERS LAST WEEK NEW STEPS WILL HAVE TO BE TAKEN BUT THIS ONE DESERVES COMMENDATION BUT THE NEW IMF REPORT ADDED THAT EVEN IF MR CLINTON SUCCEEDS IN SLOWING THE GROWTH OF HEALTHCARE COSTS FURTHER TAX INCREASES WILL BE REQUIRED TO TAME THE DEFICIT THE IMF WAS PARTICULARLY GLOOMY ABOUT THE OUTLOOK FOR EUROPE PREDICTING THAT WESTERN EUROPE WILL HARDLY GROW AT ALL THIS YEAR EUROPE IS VERY BAD THE IMF OFFICIAL SAID ALTHOUGH THE IMF REPORT PROJECTS 22 GROWTH THERE NEXT YEAR THE SENIOR OFFICIAL SAID THAT GROWTH MIGHT ACTUALLY BE LESS THAN HALF OF THAT THE IMF EXPECTS GERMANY TO KEEP LOWERING INTEREST RATES ALLOWING OTHER EUROPEAN COUNTRIES TO DO THE SAME BUT IT WARNED THAT THE RATE REDUCTIONS MIGHT OCCUR TOO LATE OR BE INSUFFICIENT IN ITS NEW REPORT AND IN BRIEFINGS WITH REPORTERS THE IMF SUGGESTED THAT DESPITE US CRITICISMS TO THE CONTRARY THE JAPANESE 132 TRILLIONYEN US 1195 BILLION FISCAL STIMULUS IS PROBABLY ABOUT THE RIGHT SIZE EVEN THOUGH IT WON'T PACK QUITE AS MUCH PUNCH AS THE JAPANESE GOVERNMENT HAS SAID THE IMF EXPECTS THE JAPANESE ECONOMY TO EXPAND ONLY 13 THIS YEAR SUBSTANTIALLY LESS THAN THE 38 FORECAST SIX MONTHS AGO BUT IT PREDICTED THAT JAPAN'S ECONOMY WILL GROW BY 35 NEXT YEAR THE IMF EXPECTS DEVELOPING COUNTRIES TO GROW BY 51 THIS YEAR LESS THAN LAST YEAR AND LESS THAN PREVIOUSLY ANTICIPATED BECAUSE OF PROBLEMS IN THE MIDDLE EAST AND BRAZIL GROWTH IN ASIAN COUNTRIES OUTSIDE JAPAN REMAINS STRONG THE ECONOMY OF THE FORMER SOVIET UNION WILL SHRINK AN ADDITIONAL 118 THIS YEAR THE IMF SAID EVEN WORSE THAN PREVIOUS PREDICTIONS 9304270175 930427 WHO'S NEWS NATIONAL CITY CORP NATIONAL CITY CORP CLEVELAND JON L GORNEY 42 YEARS OLD AND WILLIAM E MACDONALD III 46 WERE ELECTED EXECUTIVE VICE PRESIDENTS OF THE BANK HOLDING COMPANY MR GORNEY FORMERLY A SENIOR VICE PRESIDENT WILL REMAIN IN CHARGE OF INFORMATION SERVICES AND OPERATIONS MR MACDONALD PREVIOUSLY SENIOR VICE PRESIDENT WILL REMAIN PRESIDENT OF THE COMPANY'S LEAD BANK IN CLEVELAND AND REMAIN CHAIRMAN OF THE COMPANY'S RETAIL BUSINESS BOARD SEPARATELY DANIEL E EVANS 56 AND MORRY WEISS 52 WERE NAMED DIRECTORS MR EVANS IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BOB EVANS FARMS INC MR WEISS IS CHIEF EXECUTIVE OFFICER OF AMERICAN GREETINGS CORP NATIONAL CITY SAID THE BOARD SIZE FELL TO 16 FROM 17 BECAUSE THREE DIRECTORS' TERMS EXPIRED 9304270174 930427 WHO'S NEWS DETREX CORP DETREX CORP SOUTHFIELD MICH JOHN F MANGOLD 66 YEARS OLD FORMERLY INTERIM PRESIDENT AND CHIEF EXECUTIVE OFFICER WAS ELECTED A DIRECTOR OF THIS CHEMICAL ADDITIVES MAKER THE BOARD SHRINKS TO SEVEN MEMBERS FROM NINE BECAUSE THREE DIRECTORS DIDN'T STAND FOR REELECTION 9304270173 930427 WHO'S NEWS MINING SERVICES INTERNATIONAL CORP MINING SERVICES INTERNATIONAL CORP SALT LAKE CITY JOHN T DAY A MEMBER OF THE BOARD WAS ELECTED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS MINING EXPLOSIVES SUPPLIER MR DAY SUCCEEDS LEX L UDY WHO WAS NAMED VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER 9304270172 930427 INTERNATIONAL CHINA TAIWAN BURY HATCHET TO HOLD TALKS BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL SINGAPORE AS CHINA AND TAIWAN LONGTIME BITTER ENEMIES SIT DOWN FOR THEIR FIRST SERIOUS DISCUSSIONS SINCE THE 1940S THEY CLEARLY ARE PLEASED THAT THEY HAVE BEEN ABLE TO PLAY DOWN THEIR POLITICAL FEUD AND FOCUS ON PRAGMATIC ISSUES WE HAVE PUT ASIDE ALL OUR POLITICAL PROBLEMS AND IDEOLOGIES SAYS A PERSON FAMILIAR WITH THE DISCUSSIONS THE TWODAY TALKS IN SINGAPORE FORMALLY BEGIN TODAY WITH THE FIRST MEETING OF THE CHAIRMEN OF THE UNOFFICIAL ORGANIZATIONS SET UP BY TAIPEI AND BEIJING TO REPRESENT THEIR MUTUAL INTERESTS TAIPEI'S CHIEF DELEGATE IS CF KOO A BILLIONAIRE BUSINESSMAN WHO SITS ON THE CENTRAL STANDING COMMITTEE OF THE ISLAND'S RULING KUOMINTANG BEIJING'S TEAM IS LED BY WANG DAOHAN A FORMER MAYOR OF SHANGHAI WHO IS CLOSE TO CHINA'S SENIOR COMMUNIST PARTY LEADERS WHILE MR KOO AND MR WANG TOMORROW WILL SIGN TWO AGREEMENTS ONE ON THE DELIVERY OF REGISTERED LETTERS AND THE OTHER ON DOCUMENT VERIFICATION THE REAL SUBSTANCE OF THE TALKS WILL BE A COMMUNIQUE WHICH FOR THE FIRST TIME WILL LAY OUT THE PROBLEMS THAT TAIWAN AND CHINA WILL ADDRESS IN THE FUTURE THE COMMUNIQUE FORMALIZES CONTACTS BETWEEN THE TWO ORGANIZATIONS CHINA'S ASSOCIATION FOR RELATIONS ACROSS THE TAIWAN STRAIT AND TAIWAN'S STRAITS EXCHANGE FOUNDATION CALLING FOR MEETINGS EVERY THREE MONTHS BETWEEN LOWERLEVEL OFFICIALS AND TWICEAYEAR SESSIONS BETWEEN THE SECRETARIESGENERAL THE CHAIRMEN WILL MEET LESS OFTEN BOTH DELEGATIONS SAY THE COMMUNIQUE WILL CALL FOR THE TWO ORGANIZATIONS TO DISCUSS TAIWAN'S REPATRIATION OF ILLEGAL MAINLANDER IMMIGRANTS JOINT EFFORTS TO COMBAT CRIME PROTECTION OF INTELLECTUALPROPERTY RIGHTS RESOLUTION OF FISHERIES DISPUTES EFFORTS TO DEAL WITH DIFFERENCES BETWEEN THE CHINESE AND TAIWAN LEGAL SYSTEMS AND JOINT EXPLOITATION OF NATURAL RESOURCES A PERSON FAMILIAR WITH THE NEGOTIATIONS SAID THE NATURALRESOURCES QUESTION WAS ADDED TO THE COMMUNIQUE AT THE REQUEST OF BEIJING WHICH HE SAID HAS INDICATED AN INTEREST IN SIGNING LONGTERM CONTRACTS FOR TAIWAN COAL BOTH SIDES SAY THEY EXPECT TO HOLD TALKS SOON POSSIBLY AS EARLY AS NEXT MONTH ON THE ILLEGALIMMIGRANT ISSUE SEVERAL HUNDRED MAINLANDERS CAUGHT WORKING ILLEGALLY IN TAIWAN HAVE BEEN DETAINED IN A TAIWANESE PRISON AND ARE AWAITING REPATRIATION THE ISSUE OF PROTECTING TAIWAN INVESTMENTS IN CHINA REMAINS UNRESOLVED DESPITE EXTENSIVE DISCUSSIONS THE TAIPEI DELEGATION IS INTERESTED IN SIGNING AN ACCORD SIMILAR TO BILATERAL AGREEMENTS CHINA HAS REACHED WITH OTHER COUNTRIES THAT WOULD DEFINE THE RIGHTS OF TAIWAN INVESTORS WHO BY SOME ESTIMATES HAVE MORE THAN 10 BILLION INVESTED IN CHINA BUT THE BEIJING DELEGATION IS INSISTING THAT CHINA ALREADY HAS REGULATIONS THAT PROTECT TAIWANESE INTERESTS CHINA ALSO IS TRYING TO PERSUADE TAIWAN TO AGREE TO A JOINT CROSSSTRAIT MEETING LATER THIS YEAR TO DISCUSS ECONOMIC AND TRADE ISSUES TAIWAN IS RESISTING SEEING THE MEETING AS A VEHICLE FOR BEIJING TO PROMOTE ITS AGENDA IN A SETTING THAT WOULD LEND GREATER LEGITIMACY TO ITS VIEWS 9304270171 930427 INTERNATIONAL PEMEX TO ALLOW CONSORTIUM TO BUILD GULF COAST PLANT COATZACOALCOS MEXICO PETROLEOS MEXICANOS SA THE STATEOWNED OIL MONOPOLY SIGNED A 350 MILLION AGREEMENT TO ALLOW A USMEXICANSPANISH CONSORTIUM TO BUILD AND OPERATE A GASOLINEADDITIVE PLANT IN SOUTHERN MEXICO'S GULF COAST PETROCHEMICAL CORRIDOR THE CONSORTIUM KNOWN AS PROYECTOS ECOLOGICOS ECOLOGICAL PROJECTS SA OR PROESA WILL SUPPLY TWICE THE AMOUNT OF MEXICO'S CURRENT IMPORTS OF MTBE AN ADDITIVE THAT MAKES GASOLINE BURN MORE COMPLETELY AND THUS EMIT FEWER POLLUTANTS THE PLANT WILL PRODUCE 15000 BARRELS OF MTBE DAILY FROM BUTANE SUPPLIED BY PEMEX THE PROESA JOINT VENTURE WITH FOREIGN COMPANIES IS CONSIDERED POLITICALLY SENSITIVE BECAUSE MEXICO ONLY RECENTLY BEGAN OPENING ITS PETROCHEMICAL SECTOR TO PRIVATE INVESTMENT THE CONSORTIUM WILL BE LED BY VALERO ENERGY CORP SAN ANTONIO TEXAS AND GRUPO INFOMIN SA A CLOSELY HELD MEXICAN PETROCHEMICAL CONCERN OTHER PARTICIPANTS INCLUDE UNITS OF BANACCI SA MEXICO'S BIGGEST FINANCIAL HOUSE AND SPAIN'S CIA ESPANOLA DE PETROLEOS SA 9304270170 930427 FINANCING BUSINESS HORSHAM CORP HORSHAM CORP TORONTO SAID IT PLANS TO RAISE US100 MILLION THROUGH THE SALE OF 85 MILLION SUBORDINATE VOTING SHARES TO A GROUP OF UNDERWRITERS HEADED BY GORDON CAPITAL CORP OF TORONTO THE HOLDING COMPANY SAID UNDERWRITERS WILL RESELL THE SHARES TO INVESTORS IN CANADA THE US AND EUROPE FOR US1182 A SHARE OR C14875 A SHARE IN CANADA HORSHAM HAS INTERESTS IN GOLD MINING OIL REFINING AND MARKETING AND PROPERTY DEVELOPMENT IT HAD ABOUT 819 MILLION COMMON SHARES OUTSTANDING IN TRADING ON THE TORONTO STOCK EXCHANGE YESTERDAY HORSHAM CLOSED AT C15 DOWN 625 CENTS 9304270169 930427 TECHNOLOGY FDA URGES DOCTORS TO CURB PRESCRIPTIONS OF BOOTS DRUG WASHINGTON THE FOOD AND DRUG ADMINISTRATION CITING AN INCREASED RISK OF PATIENT DEATH RECOMMENDED THAT PHYSICIANS STOP PRESCRIBING 100MILLIGRAMADAY DOSES OF A BOOTS PHARMACEUTICALS INC HEART DRUG THE DRUG MANOPLAX WAS APPROVED BY THE AGENCY ON DEC 30 FOR MANAGING CONGESTIVE HEART FAILURE IN PATIENTS WHO DON'T RESPOND TO OTHER MEDICATIONS THE DRUG WAS RELEASED FOR MARKETING LAST MONTH THE AGENCY SAID YESTERDAY THAT 50MILLIGRAM AND 75MILLIGRAM DOSES MAY STILL BE USED MOREOVER IT SAID THAT PATIENTS TAKING MANOPLAX SHOULDN'T ALTER THEIR USE OF THE DRUG UNTIL THEY CONSULT WITH THEIR DOCTORS THE FDA IS GETTING WORD OF ITS RECOMMENDATION TO THE MEDICAL COMMUNITY THROUGH OVERNIGHT MAIL AND MAILGRAMS THE HEIGHTENED RISK OF DEATH SHOWED UP IN A CONTROLLED TRIAL OF THE DRUG BEING CONDUCTED BY BOOTS 9304270168 930427 TEXAS UTILITIES RATE INCREASE DALLAS TEXAS UTILITIES CO SAID THE PUBLIC UTILITY COMMISSION OF TEXAS RECOMMENDED AN ANNUAL RATE INCREASE OF 117 OR 582 MILLION THE UTILITY SAID ITS TEXAS UTILITIES ELECTRIC CO UNIT HAD REQUESTED AN ANNUAL RATE INCREASE OF 153 OR 760 MILLION 9304270167 930427 BUSINESS BRIEF BERGEN BRUNSWIG PARTNER MAKE BID FOR BIG EUROPEAN DRUG DISTRIBUTOR ORANGE CALIF BERGEN BRUNSWIG CORP SAID IT MADE A BID WITH A FRENCH PARTNER TO ACQUIRE EUROPE'S LARGEST PHARMACEUTICAL DISTRIBUTOR OFFICE COMMERCIAL PHARMACEUTIQUE SA PARIS FOR ABOUT 443 MILLION OR ABOUT 160 A SHARE BERGEN'S INVESTMENT IN THE OFFER IS ABOUT 90 MILLION IF THE OFFER IS ACCEPTED BERGEN A HEALTH SERVICE AND CONSUMER ELECTRONICS DISTRIBUTOR WOULD TAKE A 20 STAKE IN OCP WITH THE RIGHT TO INCREASE ITS INTEREST TO 34 AND HIGHER IN CERTAIN CIRCUMSTANCES THE COMPANY'S PARTNER IN THE BID COOPERATION PHARMACEUTIQUE FRANCAISE FRANCE'S LARGEST SUPPLIER OF OVERTHECOUNTER PRODUCTS TO PHARMACIES WOULD BE THE MAJORITY SHAREHOLDER OCP IS THE SUBJECT OF ANOTHER BID OF ABOUT 400 MILLION FROM GEHE AG A GERMAN PHARMACEUTICAL MAKER THAT IS A UNIT OF FRANZ HANIEL & CIE THE OFFER HAD BEEN THE SUBJECT OF SOME CONTROVERSY AND LITIGATION IN FRANCE OCP INITIALLY HAD ACCEPTED THE BID AND IT HAD CLEARED SEVERAL REGULATORY HURDLES BUT ITS LARGEST STOCKHOLDER PIERRE BOURELY WAS OPPOSED ALONG WITH SOME FRENCH GOVERNMENT FACTIONS AT A RECENT SHAREHOLDER'S MEETING MR BOURELY WAS INSTALLED AS CHAIRMAN AND THE ONCEFRIENDLY BID BECAME A HOSTILE ONE MR BOURELY BEGAN TRYING TO ASSEMBLE ANOTHER OFFER LEADING TO THE LATEST BID HE HAD A LONGSTANDING CONNECTION TO BERGEN BRUNSWIG MR BOURELY HAD STUDIED PHARMACOLOGY AT PURDUE UNIVERSITY IN INDIANA WITH THE LATE EMIL MARTINI JR BERGEN BRUNSWIG'S LONGTIME CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE BIDDING BATTLE COULD ESCALATE FURTHER ANALYSTS SAID GEHE COULDN'T BE REACHED FOR COMMENT BUT IN AN INTERVIEW LAST WEEK A GEHE EXECUTIVE DIDN'T RULE OUT A COUNTER BID IF AS WIDELY RUMORED COOPERATION JOINED THE FRAY MR BOURELY AND HIS FAMILY WOULD RETAIN THEIR 15 STAKE IN OCP IF THE OFFER IS COMPLETED OCP REPORTED SALES OF MORE THAN 6 BILLION FOR THE FISCAL YEAR ENDED SEPT 30 1992 IN AN INTERVIEW NEIL F DIMICK CHIEF FINANCIAL OFFICER OF BERGEN SAID THE COMPANY WAS INTERESTED IN OCP BECAUSE IT WANTED TO GLOBALIZE ITS TIES TO EUROPEAN DRUG MANUFACTURERS TRADE TECHNOLOGY AND PREPARE FOR HEALTHCARE REFORM IN THE US THAT WILL PROBABLY FOLLOW A MORE EUROPEAN MODEL AND A 20 INTEREST IN EUROPE'S LARGEST WHOLESALER IS NOT INSIGNIFICANT HE SAID EVEN WITHOUT CONTROL HE ALSO STRESSED THE COMPANY'S TIES TO THE BOURELY FAMILY WE WOULDN'T HAVE BEEN INTERESTED WITHOUT THEIR INVOLVEMENT 9304270166 930427 FINANCING BUSINESS EURONEVADA MINING CORP EURONEVADA MINING CORP TORONTO SAID IT AGREED TO ISSUE TWO MILLION SPECIAL WARRANTS AT 25 CANADIAN DOLLARS US1986 EACH TO A GROUP OF UNDERWRITERS HEADED BY GORDON CAPITAL CORP FOR TOTAL PROCEEDS OF C50 MILLION EURONEVADA WHICH OWNS ROYALTIES ON VARIOUS GOLD MINING OPERATIONS SAID EACH SPECIAL WARRANT WILL BE CONVERTIBLE INTO ONE COMMON SHARE AND A SHARE PURCHASE WARRANT TWO SHARE PURCHASE WARRANTS WILL ALLOW THE HOLDER TO BUY ONE ADDITIONAL COMMON SHARE OF EURONEVADA AT C32 A SHARE FOR THE NEXT FIVE YEARS THE COMPANY SAID THE TRANSACTION IS SUBJECT TO REGULATORY APPROVALS AT LAST REPORT EURONEVADA HAD ABOUT 156 MILLION COMMON SHARES OUTSTANDING 9304270165 930427 DIVIDEND NEWS ARMOR ALL PRODUCTS CORP ARMOR ALL PRODUCTS CORP AN ALISO VIEJO CALIF MAKER OF AUTOMOTIVEAPPEARANCE PRODUCTS RAISED THE QUARTERLY DIVIDEND 33 TO 16 CENTS A SHARE FROM 12 CENTS PAYABLE JULY 1 TO STOCK OF RECORD JUNE 1 THE COMPANY SAID THE INCREASE REFLECTS ITS STRONG FINANCIAL PERFORMANCE IN THE FISCAL YEAR ENDED MARCH 31 NET INCOME JUMPED 49 TO 192 MILLION OR 91 CENTS A SHARE THE DIVIDEND INCREASE RESTORES THE PAYOUT TO THE LEVEL PRIOR TO MAY 1991 WHEN IT WAS CUT TO 12 CENTS A SHARE 9304270164 930427 FOURTH FINANCIAL SETS BUYBACK WICHITA KAN FOURTH FINANCIAL CORP SAID ITS BOARD APPROVED A REPURCHASE OF 500000 COMMON SHARES WHICH IT WILL USE FOR GENERAL CORPORATE PURPOSES THE BUYBACK WHICH IS EFFECTIVE THROUGH THE END OF 1993 WILL INVOLVE ONE OR MORE TRANSACTIONS IN THE OPEN MARKET FOURTH FINANCIAL A BANK HOLDING COMPANY SAID IT HAS 224 MILLION COMMON SHARES OUTSTANDING 9304270163 930427 WORLD MARKETS TOKYO EQUITIES SOFTEN IN QUIET DEALINGS PRICES DROP IN LONDON AS SENTIMENT REMAINS NEGATIVE A WALL STREET JOURNAL NEWS ROUNDUP TOKYO SHARE PRICES SOFTENED MONDAY IN QUIET TECHNICALLY DRIVEN TRADING LONDON STOCKS DROPPED AS NEGATIVE SENTIMENT CONTINUED TO NAG THE MARKET IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 11284 POINTS FRIDAY FELL 8052 TO 1962363 IN TRADING TUESDAY IN TOKYO THE NIKKEI INDEX ROSE 38982 POINTS TO CLOSE THE MORNING SESSION AT 2001345 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT A RELATIVELY THIN 300 MILLION SHARES DOWN FROM 3118 MILLION SHARES ON FRIDAY MANY INVESTORS ALREADY HAD LEFT FOR VACATION AHEAD OF THE GOLDEN WEEK HOLIDAYS THAT WILL SHUT THE EXCHANGE THURSDAY AND NEXT MONDAY THROUGH WEDNESDAY LOSERS OUTNUMBERED GAINERS 565457 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH GAINED 966 POINTS FRIDAY ADDED 308 TO 153577 THE TOKYO MARKET FIRMED SLIGHTLY IN MONDAY'S MORNING SESSION SUPPORTED BY PUBLIC PENSIONFUND BUYING BUT WAS SET BACK IN THE AFTERNOON AS BASKET ARBITRAGERS UNWOUND STOCK POSITIONS ACTIVITY ALSO WAS LACKLUSTER BECAUSE MONDAY WAS THE LAST TRADING DAY FOR SETTLEMENT OF APRIL TRANSACTIONS AND BROKERAGE FIRMS DIDN'T STAKE NEW POSITIONS FOR THEMSELVES BUT NONFERROUS METAL SHARES ATTRACTED STRONG BUYING INTEREST AS THE PRICE OF GOLD ON THE PRECIOUSMETALS MARKETS SKYROCKETED IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX LOST 215 POINTS TO 28223 THE FT 30STOCK INDEX DROPPED 178 POINTS TO 22227 VOLUME WAS A FAIRLY LIGHT 4919 MILLION SHARES DOWN SHARPLY FROM 6993 MILLION SHARES IN THE PREVIOUS SESSION NEITHER ECONOMIC DATA NOR CORPORATE NEWS MANAGED TO PROVIDE A LEAD FOR LONDON INVESTORS WHO CONTINUED TO BE DISAPPOINTED THAT BRITISH INTEREST RATES AREN'T LIKELY TO FALL FURTHER FROM THE CURRENT 6 NOW THAT MANY SIGNS POINT TO AN ECONOMIC RECOVERY THE MARKET HAS LARGELY IGNORED SIGNS THAT THE ECONOMY MAY BE GROWING FASTER THAN PREVIOUSLY BELIEVED WITH THE POTENTIAL TO INCREASE CORPORATE EARNINGS SENTIMENT ALSO WAS HURT BECAUSE A MUCHRUMORED LARGE CORPORATE TAKEOVER BID HASN'T MATERIALIZED SEVERAL COMPANIES ARE CONSIDERED ACQUISITION TARGETS BUT MARKET ATTENTION HAS CENTERED ON THE FOOD COMPANY UNITED BISCUITS THE FT 100 TRADED ABOUT 14 POINTS LOWER FROM MIDMORNING BUT TOOK A NOSE DIVE IN MIDAFTERNOON WHEN ACTIVITY IN THE FUTURES MARKET INCREASED IN FRANKFURT THE DAX 30STOCK INDEX FELL 729 POINTS TO 164981 THE OVERALL MARKET WAS LOWER DESPITE AN ABSENCE OF SELLING PRESSURE THE BOURSE'S DIRECTION CAME FROM THE FUTURES MARKET THOUGH EVEN THERE ACTIVITY WAS FAIRLY LIGHT CORPORATE NEWS WAS SCARCE AND INFLATION DATA FROM THREE OF WESTERN GERMANY'S LARGEST STATES WERE IN LINE WITH EXPECTATIONS SHARE PRICES REBOUNDED FROM LOWS AFTER THE INFLATION FIGURES WERE RELEASED IN PARIS THE FIRST DAY OF THE NEW MONTHLY TRADING ACCOUNT FAILED TO OVERCOME THE MARKET'S BEARISH MOOD AND STOCKS GAVE UP A HALFHEARTED RALLY ATTEMPT BY MIDAFTERNOON TO END WITH LOSSES IN AMSTERDAM SHARES WERE DRAGGED DOWN BY A TUMBLING US DOLLAR AND LOWER STOCK PRICES IN LONDON AS WELL AS ECONOMIC WEAKNESS IN EUROPE AND WEAK CORPORATE EARNINGS PROSPECTS IN THE NETHERLANDS STOCKHOLM SHARES FELL ACROSS THE BOARD AS A SMALLERTHANEXPECTED CUT IN SWEDEN'S KEY LENDING RATE DISAPPOINTED INVESTORS ZURICH PRICES FELL ON SOME PROFITTAKING MILAN SHARES ROSE SHARPLY IN ANTICIPATION OF RESOLUTION OF A GOVERNMENT CRISIS BY THE APPOINTMENT OF A PERSON REMOVED FROM PARTY POLITICS TO BE PRIME MINISTER AND FORM A NEW GOVERNMENT SYDNEY SHARES ROSE AS INVESTORS RUSHED TO BUY GOLD MINING AND EXPLORATION STOCKS AS THE GOLD PRICE CLIMBED MOVES IN OTHER SECTORS WERE SMALL AS SOME INVESTORS TOOK A THREEDAY HOLIDAY WEEKEND AND BANKS WERE CLOSED IN MOST AUSTRALIAN CITIES HONG KONG STOCKS SURGED TO AN ALLTIME PEAK FUELED BY HOPES OF A SINOBRITISH AGREEMENT ON THE COLONY'S POLITICAL FUTURE SINGAPORE EQUITIES SURGED ON HEAVY BUYING IN BLUE CHIPS AND LARGE PURCHASES BY FOREIGN INVESTORS LEADING THE BENCHMARK INDEX TO A RECORD HIGH MANILA PRICES ENDED MIXED AS PROFITTAKING ERODED EARLY GAINS SEOUL SHARES DROPPED AS CAUTIOUSNESS TOOK HOLD FOLLOWING RECENT HEFTY GAINS AMONG CORPORATE DEVELOPMENTS IN LONDON CADBURY SCHWEPPES DROPPED 8 PENCE OR 17 TO 471 PENCE 742 AND UNITED BISCUITS RALLIED 29 PENCE OR 73 TO 428 SPECULATION ABOUT A POSSIBLE TAKEOVER OF UNITED BISCUITS PUSHED UP ITS SHARE PRICE CADBURY A FOOD AND BEVERAGE COMPANY THAT IS SAID TO BE INTERESTED IN ACQUIRING UNITED BISCUITS WAS HIT BY RUMORS THAT ITS BID WOULD BE TOPPED IN FRANKFURT LUFTHANSA FELL 1 MARK TO 108 MARKS 6825 THE AIRLINE COMPANY'S 1992 NET LOSS NARROWED TO 380 MILLION MARKS 2401 MILLION FROM 444 MILLION MARKS A YEAR EARLIER THOUGH ITS OPERATING LOSS WIDENED SIGNIFICANTLY TO 12 BILLION MARKS FROM 700 MILLION MARKS ACCORDING TO THE COMPANY'S INTERNAL MAGAZINE DER LUFTHANSEAT THE OPERATING RESULTS EXCLUDED PROCEEDS FROM AIRCRAFT SALES IN PARIS LVMH MOET HENNESSY LOUIS VUITTON SLIPPED 8 FRENCH FRANCS TO 3641 FRANCS 68145 THE LUXURY GOODS AND SPIRITS CONCERN IN A BID TO IMPROVE LIQUIDITY OF ITS SHARES WILL PROPOSE A 5FOR1 STOCK SPLIT TO SHAREHOLDERS AT A MEETING SCHEDULED FOR JUNE 10 LVMH DIDN'T SPECIFY A DATE FOR THE SPLIT MATRAHACHETTE FINISHED AT 113 UP 07 THE DEFENSE ELECTRONICS MEDIA AND PUBLISHING GROUP POSTED 1992 CONSOLIDATED PROFIT OF 354 MILLION FRANCS COMPARED WITH A PROFORMA LOSS OF 168 BILLION FRANCS A YEAR EARLIER MATRA AND HACHETTE MERGED LAST YEAR THE LATEST RESULTS WERE IN LINE WITH THE COMPANY'S ESTIMATE IN FEBRUARY THE COMPANY REITERATED IT EXPECTS A SHARP RISE IN 1993 EARNINGS 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 9304270162 930427 INVESTOR CONFIDENCE CONTINUES TO FALL NEW SURVEY SHOWS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INDIVIDUAL INVESTORS' CONFIDENCE IN THE ECONOMY HAS PLUNGED TO ITS LOWEST LEVEL SINCE BEFORE PRESIDENT CLINTON'S ELECTION ACCORDING TO A SURVEY BY PAINEWEBBER GROUP INC THE RESULT NOT AS MANY INVESTORS PLAN TO SNAP UP STOCKS IN THE NEXT FEW MONTHS AS EARLIER THIS YEAR SAYS PAINEWEBBER WHICH SURVEYED 5000 OF ITS BROKERAGE CUSTOMERS THIS MONTH BUT INVESTORS CONTINUE TO PLOW MONEY INTO TAXFREE BONDS THE SURVEY SAYS THE EUPHORIA FOR CLINTON IS OVER SAYS JOE GRANO HEAD OF BROKERAGE OPERATIONS AT PAINEWEBBER THE NATION'S FIFTHLARGEST SECURITIES FIRM WE'RE SEEING A SHIFT FROM TAXABLE BONDS INTO TAXFREE MUNICIPAL BONDS AMID EXPECTATIONS BY INVESTORS THAT TAXES WILL RISE MR GRANO SAYS THE PAINEWEBBER INVESTORCONFIDENCE INDEX WHICH MEASURES EXPECTATIONS ON INFLATION INTEREST RATES AND THE STOCK AND REALESTATE MARKETS FELL TO 746 IN APRIL FROM 765 IN MARCH AND IS LOWER THAN THE 775 IN NOVEMBER WHEN PRESIDENT CLINTON WAS ELECTED IT WAS THE THIRD STRAIGHT MONTHLY DECLINE IN THE CONFIDENCE INDICATOR WHICH IS PEGGED TO AN INDEX THAT STOOD AT 100 IN 1985 MEANWHILE 56 OF THE INDIVIDUAL INVESTORS POLLED BY PAINEWEBBER SAY THEY PLAN TO BUY STOCKS OR STOCK MUTUAL FUNDS OVER THE NEXT FEW MONTHS THAT'S DOWN FROM 60 IN FEBRUARY THOUGH THE PERCENTAGE STILL IS HIGHER THAN FOR MUCH OF LAST YEAR STILL THE PLANNED REDUCTION IN SHARE PURCHASES COULD SIGNAL A ROUGH PATCH FOR THE STOCK MARKET OVER THE NEXT FEW MONTHS SOME ANALYSTS SAY A MAJOR DRIVER OF THE CURRENT BULL MARKET HAS BEEN A POWERFUL SURGE OF MONEY FLOWING INTO STOCK MUTUAL FUNDS AS INDIVIDUALS HAVE SOUGHT HIGHER RETURNS THAN THOSE AVAILABLE IN CERTIFICATES OF DEPOSIT AND MONEYMARKET FUNDS NOW INVESTORS ARE CAUGHT BETWEEN A ROCK AND A HARD PLACE SAYS SHAILENDRA GHORPADE WHO DIRECTS PAINEWEBBER'S MONTHLY SAMPLE OF ITS CUSTOMERS THEIR INTEREST IN EQUITIES ISN'T AS HIGH AS IT WAS A FEW MONTHS AGO MR GHORPADE SAYS THOUGH THERE STILL AREN'T MANY ALTERNATIVES TO STOCKS FOR HIGH RETURNS THESE DAYS ONE ALTERNATIVE SHOWING SIGNS OF LIFE THE BATTERED REALESTATE MARKET THE SURVEY SHOWED THAT 367 OF INVESTORS POLLED EXPECTED HIGHER REALESTATE PRICES IN THE NEXT FEW MONTHS UP FROM 20 IN NOVEMBER INDEED SALES HAVE RECENTLY SURGED IN REAL ESTATE INVESTMENT TRUSTS WHICH POOL INVESTORS' CAPITAL AND BUY REAL ESTATE SO FAR THIS YEAR INVESTORS HAVE PLOWED 16 BILLION INTO NEW REIT OFFERINGS UP SHARPLY FROM THE 338 MILLION INVESTED IN THE YEAREARLIER PERIOD ACCORDING TO SECURITIES DATA CO THE SENTIMENT OUT THERE IS THAT THE WORST IS OVER IN THE REALESTATE MARKET SAYS PAINEWEBBER'S MR GRANO 9304270161 930427 US CAR FIRMS CABINET OFFICIALS WILL DISCUSS AID CEOS OF BIG THREE TO MEET CLINTON AIDES TOMORROW TO WORK ON A STRATEGY BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CHIEF EXECUTIVES OF THE BIG THREE AUTO MAKERS PLAN TO MEET TOMORROW MORNING WITH OFFICIALS FROM A GOOD CHUNK OF THE CLINTON CABINET TO START CRAFTING A STRATEGY TO AID THE AUTO INDUSTRY A SPOKESWOMAN FOR THE COMMERCE DEPARTMENT WHICH IS HOSTING THE TWOHOUR MEETING SAID THE INTERAGENCY EFFORT IS SIMILAR TO ONE BEING CONDUCTED FOR THE BELEAGUERED AIRLINE AND AEROSPACE INDUSTRIES AT THE AUTO MEETING THE PARTICIPANTS PLAN TO SET A SCHEDULE TO WORK OUT A PLAN AND DISCUSS THE ISSUES INVOLVED THERE WILL BE A AN INTERCHANGE OF IDEAS TO SEE WHAT WE CAN DO THE SPOKESWOMAN SAID ALONG WITH COMMERCE SECRETARY RON BROWN AND DEPUTY COMMERCE SECRETARYDESIGNATE JOHN ROLLWAGEN EXPECTED TO ATTEND ARE LABOR SECRETARY ROBERT REICH AND CHIEF WHITE HOUSE ECONOMIST LAURA TYSON HIGHRANKING OFFICIALS BUT NOT THE CABINET CHIEFS WILL REPRESENT THE DEFENSE DEPARTMENT TREASURY DEPARTMENT NATIONAL ECONOMIC COUNCIL ENVIRONMENTAL PROTECTION AGENCY TRANSPORTATION DEPARTMENT ENERGY DEPARTMENT STATE DEPARTMENT DEPARTMENT OF HEALTH AND HUMAN SERVICES NATIONAL SCIENCE FOUNDATION AND US TRADE REPRESENTATIVE WHILE THE AUTO INDUSTRY RECENTLY APPEARS TO HAVE MADE SOMETHING OF A TURNAROUND ITS PROBLEMS HAVE BEEN A FOCAL POINT FOR MR CLINTON SINCE THE PRESIDENTIAL CAMPAIGN ASSISTING GENERAL MOTORS CORP FORD MOTOR CO AND CHRYSLER CORP COULD ENTAIL A SERIES OF TRADE TECHNOLOGICAL AND REGULATORY INITIATIVES AND WOULD TEST WHETHER THE NEW ADMINISTRATION IS ABLE TO HELP REVIVE OLDER INDUSTRIES REP SANDER LEVIN A MICHIGAN DEMOCRAT YESTERDAY CALLED FOR LEGISLATION TO CREATE A BIPARTISAN COMMISSION TO STUDY THE AUTO INDUSTRY'S PROBLEMS AND MAKE RECOMMENDATIONS IN SIX MONTHS CONGRESS RECENTLY CREATED A SIMILAR PANEL FOR THE AIRLINE INDUSTRY WHEN THE MOTOR VEHICLE INDUSTRY SUFFERS THE ENTIRE COUNTRY SUFFERS MR LEVIN SAID DESPITE MR CLINTON'S INTEREST IN AUTO ISSUES THE ADMINISTRATION HAS ACTED AS IF IT IS OF TWO MINDS REGARDING THE INDUSTRY IN THE TECHNOLOGY AREA THE ADMINISTRATION HAS PROPOSED SEVERAL PROGRAMS TO DEVELOP NEXTGENERATION CLEAN CARS AND HIGHWAYS THAT USE ELECTRONIC SENSORS TO STEER CARS AROUND TRAFFIC JAMS BUT THE ADMINISTRATION ALSO HAS HIT AUTO MAKERS WITH A NUMBER OF EXPENSIVE REGULATORY MEASURES MOST PROMINENTLY THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION ASKED GM TO VOLUNTARILY RECALL 47 MILLION LIGHT TRUCKS THAT ARE EQUIPPED WITH SIDEMOUNTED GASOLINE TANKS CRITICS SAY THESE TRUCKS ARE PRONE TO CATCHING FIRE IN SIDEIMPACT COLLISIONS AUTO INDUSTRY LOBBYISTS SAY THEY EXPECT POLLUTION STANDARDS HEALTH CARE AND TRADE ISSUES TO BE DISCUSSED AT THE MEETING REPRESENTATIVES OF INDUSTRY AND GOVERNMENT WILL MAKE PRESENTATIONS THEN THE TWO SIDES ARE SUPPOSED TO GET DOWN TO PARTICULAR ISSUES 9304270160 930427 DUPONT'S NET ROSE 12 IN 1ST QUARTER CONOCO'S GAINS CITED WILMINGTON DEL DUPONT CO SAID FIRSTQUARTER NET INCOME ROSE 12 FROM YEARAGO OPERATING PROFIT BEFORE AN ACCOUNTING CHANGE THE CHEMICAL AND OIL COMPANY CITED A SHARP INCREASE IN OPERATING PROFIT FROM ITS CONOCO OIL SUBSIDIARY THE COMPANY REPORTED FIRSTPERIOD NET OF 493 MILLION OR 73 CENTS A SHARE COMPARED WITH YEAREARLIER OPERATING PROFIT OF 439 MILLION OR 64 CENTS A SHARE ONETIME ACCOUNTING CHARGES OF 483 BILLION OR 718 A SHARE PRODUCED A YEAREARLIER NET LOSS OF 439 BILLION OR 654 A SHARE FIRSTQUARTER SALES WERE NEARLY FLAT AT 907 BILLION COMPARED WITH 916 BILLION THE YEAR BEFORE YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE DUPONT COMMON CLOSED AT 52875 UP 1 ON VOLUME OF 18 MILLION SHARES DUPONT SAID CONOCO'S FIRSTPERIOD OPERATING PROFIT BOOSTED BY HIGHER OIL AND GAS PRODUCTION OUTSIDE THE US AND LOWER EXPLORATION COSTS JUMPED 77 TO 200 MILLION FROM 113 MILLION THE FIGURES EXCLUDE A ONETIME GAIN OF 32 MILLION IN THIS YEAR'S FIRST QUARTER FROM THE EXCHANGE OF NORTH SEA PROPERTIES DUPONT SAID OPERATING PROFIT BY ITS CHEMICAL DIVISION INCREASED 17 AND DIVERSIFIED BUSINESSES INCLUDING MEDICAL PRODUCTS AND AGRICULTURAL CHEMICALS POSTED A 13 GAIN IN OPERATING PROFIT BUT PROFIT FROM ITS FIBERS AND POLYMERS BUSINESSES DECLINED 25 AND 10 RESPECTIVELY THE COMPANY CITED WEAK DEMAND IN EUROPE AND THE EFFECT OF A STRONGER DOLLAR AS REASONS FOR THE POOR PERFORMANCE IN THE FIBERS AND POLYMERS AREAS EDGAR S WOOLARD JR DUPONT CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE DEGREE OF IMPROVEMENT IN OUR FULLYEAR RESULTS WILL DEPEND TO SOME EXTENT ON THE TIMING AND MAGNITUDE OF AN ECONOMIC UPTURN IN WESTERN EUROPE AND ON CONTINUED COSTCUTTING 9304270159 930427 INVESTING ABROAD BUYING BONDS THINK GLOBALLY BUT ACT CAUTIOUSLY BY CONSTANCE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BUYING FOREIGN BONDS HAS BECOME AN INCREASINGLY POPULAR WAY FOR INVESTORS TO DIVERSIFY THEIR FIXEDINCOME PORTFOLIOS BUT IF YOU'RE THINKING ABOUT INVESTING IN FOREIGN BONDS THERE ARE THREE THINGS ALWAYS TO REMEMBER CURRENCY RISK CURRENCY RISK AND CURRENCY RISK ALTHOUGH A FOREIGN COUNTRY'S ECONOMIC OUTLOOK INTEREST RATES AND INFLATION TRENDS CERTAINLY MATTER NOTHING CAN MAKE OR BREAK A FOREIGN BOND PORTFOLIO LIKE CURRENCY SWINGS CONSIDER RECENT PERFORMANCE STATISTICS FROM JP MORGAN & CO WHICH TRACKS GOVERNMENT BONDS FROM 13 COUNTRIES INCLUDING THE US SO FAR THIS YEAR JAPANESE GOVERNMENT BONDS HAVE REWARDED US INVESTORS WITH A STUNNING TOTAL RETURN INTEREST PAYMENTS AND PRICE CHANGES OF 1664 ACCORDING TO JP MORGAN BUT FOR JAPANESE INVESTORS HOLDING THE SAME BONDS THE TOTAL RETURN WAS JUST 272 WHAT GAVE US INVESTORS SUCH LUSH TOTAL RETURNS IN JAPAN WAS A 12 JUMP IN THE VALUE OF THE YEN RELATIVE TO THE VALUE OF THE DOLLAR THIS HAS BEEN ONE OF THOSE PERIODS WHERE IT'S BEEN RIGHT TO BE POSITIONED OUTSIDE OF THE US BOND MARKET SAID DAVID BOARDMAN AN EXECUTIVE VICE PRESIDENT AT ROWE PRICE FLEMING INTERNATIONAL INC IN LONDON BUT HE ADDED IF THE VALUE OF THE DOLLAR RISES SHARPLY AN INVESTOR CAN GET WHIPSAWED THE BOTTOM LINE IS THAT FOREIGN BONDS ARE HIGHLY VOLATILE FOR US INVESTORS WITH RETURNS RISING SHARPLY ONE YEAR THEN PLUNGING THE NEXT EVEN WHEN MONEY MANAGERS TRY TO HEDGE THEIR PORTFOLIOS TO OFFSET CURRENCY EXPOSURE THE RETURNS CAN STILL FALL SHORT JP MORGAN'S INDEX OF GOVERNMENT BONDS IN 13 COUNTRIES POSTED A TOTAL RETURN FOR US INVESTORS OF 2005 IN 1986 1379 IN 1987 AND JUST 5 IN 1988 THE PERFORMANCE OF US MUTUAL FUNDS THAT INVEST IN FOREIGN BONDS IS EVEN MORE CHOPPY WITH WORLD BOND FUNDS MOVING FROM BEING ONE OF THE TOP BONDFUND PERFORMERS IN 1990 WITH A TOTAL RETURN OF ABOUT 1164 TO ONE OF THE WORSE PERFORMERS IN 1992 WITH A TOTAL RETURN OF 221 ACCORDING TO MORNINGSTAR INC LAST YEAR'S EUROPEAN CURRENCY CRISIS DEVASTATED MANY WORLD BOND FUNDS NEVERTHELESS MONEY MANGERS ARE ENCOURAGING INVESTORS TO DIVERSIFY THEIR FIXEDINCOME PORTFOLIOS OVERSEAS TO TAKE ADVANTAGE OF HIGHER INTEREST RATES IN MANY EUROPEAN COUNTRIES OVER THE LONG TERM THEY SAY THE MOVE SHOULD PAY OFF WE STILL THINK THAT THE RISK PREMIUM ASSOCIATED WITH SOME EUROPEAN BONDS IS VERY ATTRACTIVE SAYS MARK TURNER A PORTFOLIO MANAGER AT PUTNAM CO A BIG MUTUAL FUND COMPANY LIKE MANY MONEY MANAGERS MR TURNER SAYS HE BELIEVES THAT FOREIGN GOVERNMENT BOND MARKETS WILL CONTINUE TO RALLY AS INTEREST RATES DECLINE AND AS ECONOMIC GROWTH IN EUROPE AND JAPAN CONTINUES TO SLOW THE VALUE OF THE DOLLAR IS THE WILD CARD OF COURSE BUT MANY MONEY MANGERS ARE BETTING THAT THE DOLLAR WILL REMAIN DEPRESSED AS LONG AS US INTEREST RATES REMAIN AT CURRENT LOW LEVELS MR BOARDMAN AT ROWE PRICE FLEMING IS MOST FOND OF FRENCH GOVERNMENT BONDS DANISH GOVERNMENT BONDS AND BRITISH GOVERNMENT BONDS OR GILTS ALL OF THESE ECONOMIES WILL ENJOY LOW INFLATION THIS YEAR AND NEGATIVE GROWTH OR LOW GROWTH HE SAID NOWHERE IN EUROPE IS THE ECONOMY EXPECTED TO GROW HIGHER THAN 15 LOW GROWTH AND DECLINING INTEREST RATES USUALLY TRANSLATE INTO PRICE GAINS FOR BONDHOLDERS BUT EUROPE ISN'T THE ONLY PLACE WHERE MONEY MANAGERS SEE VALUE THESE DAYS INCREASINGLY US INVESTORS ARE TURNING TO SOME OF THE HIGHER YIELDING AND RISKIER BONDS OF EMERGING COUNTRIES SUCH AS MEXICO AND ARGENTINA THERE ARE LOTS OF NICHES IN THE INTERNATIONAL MARKET SAYS MADIS SENNER AN INTERNATIONAL PORTFOLIO MANAGER AT CHASE MANHATTAN PRIVATE BANK AN INVESTOR CAN DECIDE TO INVEST IN FOREIGN CORPORATE BONDS OR GOVERNMENTS BONDS OR TO INVEST IN SOUTH AMERICA OR ASIA THERE ARE ALL SORTS OF VARIETIES INVESTORS ALSO HAVE CHOICES WHEN IT COMES TO DECIDING HOW TO INVEST IN FOREIGN BONDS THE CLEAR PREFERENCE AMONG INDIVIDUAL US INVESTORS HAS BEEN TO INVEST THROUGH MUTUAL FUNDS THESE OFFER A DIVERSIFIED PORTFOLIO OF BONDS OF SEVERAL COUNTRIES AND EXPERT MANAGEMENT SOMETIMES INCLUDING CURRENCY HEDGING BUT SOME ADVENTURESOME INVESTORS ARE DECIDING TO BUY FOREIGN BONDS DIRECTLY THROUGH US BROKERS THIS APPROACH IS PERHAPS BEST SUITED FOR HIGHINCOME INDIVIDUALS WHO WANT TO BUY INTERMEDIATETERM BONDS AND WHO PLAN TO HOLD THEM TO MATURITY THE MAJOR ADVANTAGE TO BUYING IN THIS MANNER AND HOLDING IS THAT THE INVESTOR DOESN'T REALIZE PRICE CHANGES UNTIL THE BONDS ARE ACTUALLY SOLD MUTUAL FUNDS MUST MARK THE VALUE OF THEIR PORTFOLIOS TO MARKET EACH DAY IF YOU BUY DIRECT AND STICK TO LONGERTERM BONDS IT'S EASIER TO LIVE THROUGH THE WIGGLES AND JIGGLES IN THE MARKET SAID MARILYN COHEN MANAGING DIRECTOR OF FIXEDINCOME SECURITIES AT L&S ADVISORS INC IN BEVERLY HILLS CALIF MS COHEN RECOMMENDS THAT INVESTORS BUYING FOREIGN BONDS DIRECTLY SHOP AROUND HOWEVER BECAUSE FEES ASSOCIATED WITH BUYING FOREIGN BONDS CAN VARY WIDELY FROM ONE BROKER TO THE NEXT MOST MARK UP THE PRICE OF THE BOND AND ALSO CHARGE FOR THE CURRENCY EXCHANGE MERRILL LYNCH & CO FOR EXAMPLE WILL SELL GOVERNMENT BONDS ISSUED BY MOST MAJOR COUNTRIES INCLUDING JAPAN GERMANY BRITAIN AND OTHERS TO INVESTORS WILLING TO INVEST AT LEAST 25000 THE BROKERAGE FIRM HANDLES THE CURRENCY EXCHANGE AND RECEIVES INTEREST PAYMENTS FOR THE INVESTOR INVESTORS WHO DO BUY BONDS DIRECTLY SHOULD BE AWARE THAT MANY COUNTRIES WITH THE HIGHEST YIELDS SUCH AS ITALY AND NEW ZEALAND ARE ILLIQUID MEANING THAT THE BONDS MAY BE DIFFICULT AND COSTLY TO SELL BACK TO YOUR BROKER IN SUCH CASES THERE FREQUENTLY ARE VERY WIDE SPREADS BETWEEN BID AND ASKED PRICES 9304270158 930427 EXLOTTERY DIRECTOR FOR WEST VIRGINIA INDICTED BY US JURY CHARLESTON WVA A FORMER DIRECTOR OF WEST VIRGINIA'S STATE LOTTERY WAS INDICTED BY A FEDERAL GRAND JURY FRIDAY ON CHARGES THAT HE WORKED TO ENSURE A 25 MILLION STATE CONTRACT WENT TO VIDEO LOTTERY TECHNOLOGIES INC A BOZEMAN MONT COMPANY IN WHICH HE OWNED STOCK VIDEO LOTTERY SAID IT IS COOPERATING WITH THE INVESTIGATION AND THAT IT WAS ADVISED BY THE US ATTORNEY'S OFFICE HERE THAT NEITHER IT NOR ITS EMPLOYEES ARE TARGETS OF THE CONTINUING INVESTIGATION BUT ITS STOCK SLID 15 TO 1150 DOWN 2 IN OVERTHECOUNTER TRADING YESTERDAY VIDEO LOTTERY'S FOUNDER AND CHAIRMAN LARRY LIPPON RESIGNED IN OCTOBER AFTER AN UNRELATED INCIDENT IN WHICH THE VICTORIA GAMING COMMISSION IN AUSTRALIA STRUCK THE COMPANY FROM A LIST OF APPROVED SUPPLIERS GAMBLING COMMISSION OFFICIALS SAID A BACKGROUND CHECK FOUND AMONG OTHER THINGS THAT MR LIPPON HAD EXTENSIVE BUSINESS CONTACT WITH TWO MEN WHO HAD BEEN CONVICTED OF CRIMINAL ACTS THE INDICTMENT SAYS THE FORMER LOTTERY DIRECTOR ELTON E BRYAN BOUGHT 300 OF VIDEO LOTTERY'S SHARES IN SEPTEMBER THEN TRIED TO ENSURE THAT THE COMPANY RECEIVED A SINGLESOURCE CONTRACT TO IMPLEMENT A STATEWIDE VIDEO LOTTERY PLAN MR BRYAN RETIRED IN FEBRUARY AMID RUMORS OF THE INVESTIGATION TWO WEEKS AFTER WEST VIRGINIA GOV GASTON CAPERTON CANCELLED A MEETING AT WHICH LOTTERY OFFICIALS WERE TO PRESENT THEIR RECOMMENDATIONS THE INDICTMENT ALSO SAID THAT ONE UNNAMED LOTTERY EMPLOYEE BOUGHT 300 SHARES OF VIDEO LOTTERY IN SEPTEMBER WHILE ANOTHER PASSED TIPS TO TWO FRIENDS WHO BOUGHT A TOTAL OF 6000 SHARES THE INDICTMENT'S CHARGES AGAINST MR BRYAN INCLUDE MAIL FRAUD WIRE FRAUD INSIDER TRADING AND PERJURY BEFORE THE GRAND JURY HE WAS ALSO CHARGED WITH A SCHEME TO RIG THE AWARD OF AN ADVERTISING CONTRACT MR BRYAN'S ATTORNEY JEROLD JONES SAID THE FORMER LOTTERY DIRECTOR OWNED SHARES IN SEVERAL LOTTERY COMPANIES BECAUSE HE KNEW MORE ABOUT THE INDUSTRY THAN THE AVERAGE GUY ON THE STREET AS A RESULT HE SAID MR BRYAN DIDN'T HAVE AN INCENTIVE TO TILT BIDDING TOWARD ANY ONE OF THEM MR JONES TERMED THE PERJURY CHARGE NONSENSE 9304270157 930427 MARKETING & MEDIA RJR TO CUT PRICES OF WINSTON CAMEL FOR MONTH OF JUNE BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RJ REYNOLDS TOBACCO CO RETURNED FIRE IN THE CIGARETTE PRICE WAR SPARKED BY RIVAL PHILIP MORRIS COS BY CUTTING WINSTON AND CAMEL PRICES FOR THE MONTH OF JUNE TO MATCH THE COMING DISCOUNTS ON MARLBORO THE TOBACCO UNIT OF RJR NABISCO HOLDINGS CORP TOLD CIGARETTE DISTRIBUTORS LAST WEEK THAT IT PLANNED TO SHIP A MONTH'S SUPPLY OF WINSTONS EMBLAZONED WITH 40 CENTS OFF ON THE PACK THE SAME REDUCTION THAT PHILIP MORRIS ANNOUNCED FOR MARLBORO ON APRIL 2 RJR'S PROMOTION FOR CAMEL WILL BE LESS EXTENSIVE BUT WILL INCLUDE TWOFORONE OFFERS THE PLAN FROM RJR THE NATION'S NO 2 CIGARETTE MAKER AFTER PHILIP MORRIS MARKS RJR'S MOST SPECIFIC COUNTERMOVE SINCE PHILIP MORRIS ROILED THE INDUSTRY WITH ITS NEW PRICING EFFORT FOR MARLBORO MARLBORO IS THE NO 1 BRAND WITH 245 OF THE MARKET WHILE WINSTON AND CAMEL COMBINED HOLD A TOTAL OF 11 OF THE MARKET RETAILERS ALREADY HAVE BEGUN COMPLAINING ABOUT THE APPROACH OF BOTH BIG TOBACCO MARKETERS SOME DISTRIBUTORS GRIPED THAT RJR ISN'T ALLOCATING ENOUGH VOLUME OF DISCOUNTED WINSTONS WE AREN'T GETTING ENOUGH TO SUPPLY OUR CUSTOMERS SAID MARTY HYMAN DIRECTOR OF MARKETING FOR BONANZA TRADING ASSOCIATES A CIGARETTE DISTRIBUTOR IN THE BRONX NY RJR COUNTERED THAT DISTRIBUTORS WILL GET ALL THE CIGARETTES THEY NEED OTHER RETAILERS AND DISTRIBUTORS SAID PHILIP MORRIS IS TAKING A SOMEWHAT CLUMSY APPROACH IN ITS NEW AGGRESSIVE BID TO BLUNT THE INROADS OF PRIVATE LABELS ON MARLBORO COUNTRY THE COMPANY INSTEAD OF SHIPPING OUT MILLIONS OF PACKS EMBLAZONED WITH COUPONS ATTACHED IS HAVING SALESPEOPLE VISIT THOUSANDS OF INDIVIDUAL STORES AND SIGN THEM UP FOR THE PROGRAM PROVIDING SIGNS ANNOUNCING THE DISCOUNTS THE COMPANY ALSO IS LIKELY TO PROVIDE STICKERS THAT CAN BE APPLIED TO THE CIGARETTE PACKS RETAILERS WILL BE PAID DIRECTLY BY PHILIP MORRIS 40 CENTS FOR EACH PACK THEY SELL DURING THE COMPANY'S FOURWEEK PROMOTION THAT ENDS JUNE 19 BUT SOME RETAILERS MAY SIMPLY POCKET THE DISCOUNT RATHER THAN PASS IT ON TO SMOKERS AND THE STOREBYSTORE CAMPAIGN ALSO MAY BE DIFFICULT TO WAGE LOGISTICALLY I DON'T KNOW HOW PHILIP MORRIS REPS WILL BE ABLE TO GO OUT AND HIT ALL THE STORES IN NEW JERSEY SAID PAUL SCHWARTZ CHIEF EXECUTIVE OFFICER OF LUCE WHOLE TOBACCO & CANDY CORP A CIGARETTE DISTRIBUTOR IN NEWARK NJ SOME STORE EXECUTIVES FURTHER COMPLAIN THAT BECAUSE OF THE HUGE AMOUNT OF PUBLICITY THAT THE MEDIA HAVE GIVEN TO THE MARLBORO PROMOTION CUSTOMERS HAVE COME IN DEMANDING CHEAPER SMOKES NOW WHEN PHILIP MORRIS WON'T DELIVER ON THE DISCOUNTS FOR ANOTHER THREE WEEKS SOME DISTRIBUTORS LIKEWISE ARE MIFFED THAT RETAILERS ARE PRESSING THEM FOR IMMEDIATE PRICE BREAKS AS WELL 9304270156 930427 INTERNATIONAL CENTRAL BANKER CIAMPI IS NAMED ITALY'S PREMIER CHOICE SIGNALS SHARP BREAK WITH CORRUPT POLITICS AND FOCUS ON ECONOMY BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL ROME IN A RADICAL BREAK WITH THE PAST ITALIAN PRESIDENT OSCAR LUIGI SCALFARO ASKED LONGTIME BANK OF ITALY GOVERNOR CARLO AZEGLIO CIAMPI TO BE THE NEXT PRIME MINISTER IF MR CIAMPI SUCCEEDS IN FORMING A NEW GOVERNMENT HE WOULD BE THE FIRST PRIME MINISTER SINCE THE ITALIAN REPUBLIC WAS FORMED IN 1948 WHO HAS NO POLITICAL PARTY AFFILIATION WHO ISN'T A MEMBER OF PARLIAMENT AND WHO WOULD BE A FORMER CENTRAL BANK CHIEF THE UNUSUAL CHOICE UNDERLINES MR SCALFARO'S STATED GOALS OF RESTORING CONFIDENCE IN ITALY'S RECESSIONBATTERED ECONOMY AND RESPECT FOR POLITICAL INSTITUTIONS ERODED BY ITALY'S CORRUPTION SCANDALS THE MOVE WAS HAILED BY POLITICAL AND BUSINESS LEADERS AS CONSISTENT WITH THE LANDSLIDE VICTORY OF LAST WEEK'S REFERENDUM ON ELECTORAL REFORM FOR THE SENATE WHICH IMPLICITLY CALLED FOR AN OVERHAUL OF THE CORRUPTIONTAINTED POLITICAL SYSTEM IN ACCEPTING THE JOB MR CIAMPI SAID HE WOULD FORGO THE USUAL CONSULTATIONS WITH POLITICAL PARTIES TO NAME HIS CABINET HE'S EXPECTED INSTEAD TO NAME A CABINET OF TECHNOCRATS MY PLEDGE IS TO FORM A GOVERNMENT CAPABLE OF INTERPRETING THE DESIRE FOR CHANGE UNEQUIVOCALLY EXPRESSED BY THE NATION WHICH REINFORCES THE PEOPLE'S TRUST IN ITALY'S GREATNESS AND WHICH STRENGTHENS OUR CREDIBILITY MR CIAMPI SAID HIS GOVERNMENT'S TOP PRIORITY WILL BE OVERSEEING ELECTORAL REFORM HE SAID AS WELL AS ASSURING THE STABILITY OF THE LIRA ADDRESSING THE NATION'S UNEMPLOYMENT PROBLEM AND BATTLING ORGANIZED CRIME AS GOVERNOR OF ITALY'S CENTRAL BANK FOR THE PAST 14 YEARS THE 72YEAROLD MR CIAMPI IS A RESPECTED BANKER WHO HAS MAINTAINED HIS INDEPENDENCE FROM ROME'S POLITICAL INFIGHTING UNDER HIS GUIDANCE THE BANK OF ITALY WAS ONE OF THE FEW ITALIAN INSTITUTIONS TO EMERGE UNTAINTED BY THE CORRUPTION SCANDALS KNOWN AS THE GUARDIAN OF THE LIRA MR CIAMPI IS A FIERCE ADVOCATE OF TIGHT MONETARY POLICY AND ALSO IS AN OUTSPOKEN CRITIC OF MISMANAGEMENT OF ITALY'S PUBLIC FINANCES HE'S LIKELY TO IMPOSE TOUGH BUDGETARY AND FINANCIAL DISCIPLINE ON THE NATION'S FINANCES THE INTERNATIONAL CREDIBILITY OF CIAMPI WILL SURELY HELP ITALY EFFECT A POSSIBLE ECONOMIC RECOVERY SAID CARLO CALLIERI VICE PRESIDENT OF ITALY'S INDUSTRIALIST ASSOCIATION CONFINDUSTRIA IT'S THE BEST POSSIBLE CHOICE IT'S SO GOOD I NEVER THOUGHT IT WAS PROBABLE SAID GIORGIO RADAELLI INTERNATIONAL ECONOMIST AT SHEARSON LEHMAN BROTHERS INC IN LONDON MARKETS REACTED POSITIVELY TO THE NEWS WITH THE LIRA STRENGTHENING TO 93007 LIRE TO THE MARK IN LONDON TRADING FROM 93918 LIRE MR CIAMPI'S FIRST PRIORITY WILL BE OVERSEEING SWIFT PASSAGE OF ELECTORAL REFORM FOR THE CHAMBER OF DEPUTIES CONVERTING THE CURRENT SYSTEM OF PROPORTIONAL REPRESENTATION TO A USSTYLE MAJORITY SYSTEM HE ALSO WILL HAVE TO PASS AN UNPOPULAR 13 TRILLION LIRE 871 BILLION EMERGENCY BUDGET PACKAGE TO BE APPROVED BY JUNE TO BRING THE DEFICIT INTO LINE WITH ORIGINAL PROJECTIONS ITALY'S STALLED PRIVATIZATION PLAN ALSO REMAINS A PRIORITY TO GENERATE BADLY NEEDED CASH FOR PUBLIC COFFERS 9304270155 930427 WHO'S NEWS SAKS FIFTH AVENUE SAKS FIFTH AVENUE NEW YORK EUGENIA ULASEWICZ 39 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND DIRECTOR OF STORES FOR THIS 49STORE SPECIALTY CHAIN'S MIDWEST REGION EFFECTIVE MAY 17 MS ULASEWICZ IS CURRENTLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GALERIES LAFAYETTE USA A NEW YORKBASED SPECIALTY RETAILER SHE WILL SUCCEED ANNE MADDOX WHO RESIGNED SAKS FIFTH AVENUE IS OWNED BY AN INVESTMENT GROUP ASSEMBLED BY INVESTCORP EC A BAHRAINBASED INVESTMENT BANK 9304270154 930427 MONDAY'S MARKETS STOCKS FALL 1540 POINTS BONDS DROP BANKING INSURANCE TRANSPORT SHARES OFF DOLLAR ENDS MIXED BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL STOCK INVESTORS WENT ON A SELLING SPREE SENDING THE DOW JONES INDUSTRIAL AVERAGE BELOW THE PSYCHOLOGICALLY IMPORTANT 3400 MARK BONDS SLUMPED AND THE DOLLAR ENDED MIXED THE DOW JONES INDUSTRIAL AVERAGE DROPPED 1540 POINTS OR 05 TO 339837 IN HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX FELL 349 POINTS OR 08 TO 43354 AND THE NASDAQ COMPOSITE INDEX TUMBLED 1254 POINTS OR 19 TO 64587 FINISHING AT THE LOWEST LEVEL SINCE NOV 24 HEAVY SELLING OF BANK INSURANCE AND TRANSPORTATION ISSUES SANK STOCKS FROM THE OPENING BELL A SELLOFF IN SEMICONDUCTOR GIANT INTEL WHICH PLUNGED 5 1/4 TO 87 3/8 PUT ADDED PRESSURE ON OVERTHECOUNTER STOCKS HITTING TECHNOLOGY ISSUES PARTICULARLY HARD THIS IS A SHARP CORRECTION IT'S SHORT AND SWIFT SAID JACK SOLOMON A TECHNICAL ANALYST AT BEAR STEARNS ANALYSTS SAID INVESTORS ARE GETTING NERVOUS ABOUT PRESIDENT CLINTON'S APPARENT INABILITY TO MAINTAIN A STRONG LEADERSHIP ROLE IN ADDITION INVESTORS' ENTHUSIASM FOR STOCKS WAS DAMPED AFTER TREASURY SECRETARY LLOYD BENTSEN PREDICTED THAT THE NORTH AMERICAN FREE TRADE AGREEMENT FACES A ROUGH RIDE BEFORE CONGRESS IF NAFTA HAS PROBLEMS IT WILL BE NEGATIVE FOR THE STOCK MARKET SAID DAVID SHULMAN CHIEF EQUITY STRATEGIST AT SALOMON BROTHERS THE MARKET LIKES OPEN TRADE NOT CLOSED TRADE MR SOLOMON OF BEAR STEARNS THINKS STOCKS COULD FALL 20 POINTS MORE AND THEN BOUNCE BACK BUT AFTER THAT REBOUND HE FEARS THE MARKET COULD BE VULNERABLE TO MORE SELLING THAT COULD TAKE THE INDUSTRIAL AVERAGE TO BETWEEN 3250 AND 3280 ONE OF THE REASONS MR SOLOMON IS SO PESSIMISTIC IS THAT THE TECHNICAL PICTURE FOR STOCKS LOOKS BLEAK AFTER HITTING A RECORD 168308 ON APRIL 16 THE DOW JONES TRANSPORTATION AVERAGE HAS RETREATED 100 POINTS FALLING 3747 POINTS YESTERDAY TO 158055 SIMILARLY THE DOW JONES UTILITY AVERAGE ANOTHER LEADING INDICATOR OF STOCK PRICES WHICH TOUCHED A NEW HIGH OF 24768 ON APRIL 16 HAS BACKED OFF SLIPPING 025 POINT YESTERDAY TO 23861 ITS LOWEST LEVEL SINCE LATE FEBRUARY WORLDWIDE STOCK PRICES SLIPPED IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 016 TO 10360 STOCKS FELL VOLUME TOTALED 2811 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1260 ISSUES FELL AND 647 ROSE THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS AT 15688 MARKS AND 11055 YEN COMPARED WITH 15825 MARKS AND AND 11050 YEN LATE FRIDAY 9304270153 930427 TECHNOLOGY & HEALTH CARTERWALLACE IS TOLD TO HALT ORGANIDIN SALES BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL THE FOOD AND DRUG ADMINISTRATION ORDERED CARTERWALLACE INC'S UNIT WALLACE LABORATORIES TO STOP MARKETING ITS ORGANIDIN PRESCRIPTION DRUGS THE DRUG LINE HAS BEEN UNDER FDA REVIEW FOR SOME TIME AN ADVISORY COMMITTEE LAST YEAR RECOMMENDED THAT THE COMPANY REANALYZE DATA SUPPORTING THE DRUG'S EFFICACY AND CHANGE ITS LABEL TO EMPHASIZE RESULTS OF ANIMAL STUDIES SHOWING POSSIBLE CANCERCAUSING EFFECTS OF THE DRUG A CARTERWALLACE SPOKESWOMAN SAID THE FDA'S ANNOUNCEMENT CAME AS A SURPRISE BECAUSE THE COMPANY HAD COMPLIED WITH THOSE RECOMMENDATIONS CARTERWALLACE STOCK FELL 11 YESTERDAY IN HEAVY TRADING ANALYSTS ESTIMATE THAT THE DRUG LINE ACCOUNTS FOR ABOUT 50 MILLION IN ANNUAL SALES THE PRODUCTS ARE USED TO HELP BREAK UP MUCUS IN THE RESPIRATORY TRACT THE CARTERWALLACE PRODUCTS AFFECTED BY THE FDA'S ACTIONS INCLUDE ORGANIDIN TABLETS ELIXIR AND SOLUTION TUSSIORGANIDIN TUSSIORGANIDINDM AND THEOORGANIDIN CARTERWALLACE SAID ANY SUBSTANTIAL REDUCTION IN ORGANIDIN SALES DUE TO ANY FDA ACTION WOULDN'T HAVE A MATERIAL ADVERSE EFFECT ON ITS FINANCIAL POSITION BUT AT THE SAME TIME THE NEW YORK DRUG MAKER SAID SUCH A DROP COULD MATERIALLY AFFECT OPERATING RESULTS PERHAPS LEADING TO A ONETIME CHARGE TO EARNINGS FOR THE YEAR ENDED MARCH 31 1993 THE COMPANY WOULDN'T ELABORATE ON ITS STATEMENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE CARTERWALLACE SHARES CLOSED AT 24125 A SHARE DOWN 3 ALTHOUGH AN FDA SPOKESWOMAN SAID THE COMPANY HAD BEEN ORDERED TO STOP MARKETING THE DRUG THE COMPANY SAID THE FDA HAD ONLY REQUESTED THAT IT DISCONTINUE MARKETING AND THAT THE COMPANY HAS ASKED FOR A MEETING WITH FDA OFFICIALS THE DRUG KNOWN GENERICALLY AS IODINATED GLYCEROL WAS INTRODUCED DECADES AGO BEFORE THERE WERE REGULATIONS REQUIRING PROOF OF THE DRUG'S SAFETY AND EFFICACY THE FDA SPOKESWOMAN SAID BASED ON A 1990 REPORT THAT THE DRUG MIGHT CAUSE CANCER THE SCANT EVIDENCE OF ITS EFFICACY AND THE AVAILABILITY OF ALTERNATIVE THERAPIES WE DETERMINED THE BENEFIT DOESN'T JUSTIFY THE RISK ASSOCIATED WITH USING IT THE SPOKESWOMAN SAID THE FDA ALSO ISSUED THE SAME ORDER TO 63 OTHER COMPANIES THAT MARKET PRODUCTS CONTAINING IODINATED GLYCEROL AN FDA SPOKESWOMAN SAID THE AGENCY DIDN'T DISCLOSE THE NAMES OF THE OTHER COMPANIES AND DRUG INDUSTRY DIRECTORIES DIDN'T INDICATE THAT IT IS A MAJOR PRODUCT FOR OTHER COMPANIES THE COMPANIES HAVE 15 DAYS TO RESPOND THE SPOKESWOMAN SAID 9304270152 930427 UAW SAYS ITS GOAL IS TO PROTECT GAINS IN CONTRACT TALKS BEGINNING IN JUNE BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT UNITED AUTO WORKERS PRESIDENT OWEN BIEBER GAVE A FIERY DEFENSE OF THE STATUS QUO DECLARING HIS UNION WON'T BACK UP ON ANYTHING IN TALKS WITH THE BIG THREE US AUTO MAKERS THIS SUMMER MR BIEBER'S COMBATIVE REMARKS YESTERDAY TO ABOUT 2000 UAW LOCAL LEADERS HIGHLIGHTED THE PREDICAMENT THE UAW FACES AS IT HEADS INTO ITS TRIENNIAL NATIONAL CONTRACT TALKS WITH GENERAL MOTORS CORP FORD MOTOR CO AND CHRYSLER CORP IN YEARS PAST THE UAW COULD COUNT ON MAKING ADVANCES IN PAY AND BENEFITS IN EACH CONTRACT CYCLE BUT AGAINST A BACKDROP OF THREE YEARS OF HARD TIMES AT NO 1 AUTO MAKER GM AND INTENSIFYING INTERNATIONAL COMPETITION OVERALL MR BIEBER YESTERDAY RETURNED REPEATEDLY TO THE THEME THAT THE UAW'S TOP PRIORITY WILL BE TO PROTECT THE GENEROUS WAGES BENEFITS AND INCOME SECURITY PROVISIONS IT HAS NOW LET ME ASSURE HERE AND NOW WE DID NOT COME TO DETROIT THIS WEEK TO BACK UP ON ANYTHING MR BIEBER SAID ARE WE BACKING UP ON HEALTH CARE HE ADDED LATER YOU'RE DAMN RIGHT WE'RE NOT MR BIEBER'S REMARKS REFLECT THE PRESSURE THE UAW EXPECTS TO FACE AT GM THE NO 1 AUTO MAKER IS IN THE PROCESS OF SHEDDING THOUSANDS OF WORKERS AS IT STRUGGLES TO OVERCOME A GAPING LABOR COST DISADVANTAGE WITH ITS RIVALS GM OFFICIALS SAY PRIVATELY THE COMPANY CAN'T AFFORD TO CONTINUE ITS GENEROUS JOB AND INCOME SECURITY PROGRAMS UNDER WHICH THOUSANDS OF LAIDOFF UAW WORKERS GET VIRTUALLY FULL PAY FOR STAYING HOME OR DOING COMMUNITY SERVICE WORK THE THREEDAY BARGAINING CONVENTION IS THE UAW'S FORUM TO DEBATE ITS STRATEGY BEFORE TALKS WITH THE AUTO MAKERS FORMALLY BEGIN IN LATE JUNE THE UNION'S THREEYEAR CONTRACTS WITH GM FORD AND CHRYSLER ALL EXPIRE SEPT 14 UAW LEADERS ALSO USE THE GATHERING TO CHARGE UP THE TROOPS MR BIEBER LASHED OUT AT BIG THREE EXECUTIVES FOR TAKING BIG PAY RAISES IN 1992 THE LOWEST THE VERY LOWEST RAISE THAT A BIG THREE CEO GOT LAST YEAR WAS 28 HE SAID CAN YOU IMAGINE WHAT THE HEADLINES WOULD SAY TOMORROW MORNING IF I SAID HERE THIS MORNING THAT THE UAW WAS GOING TO DEMAND A RAISE OF SAY 20 THE HEADLINE WRITERS AND THE ANALYSTS WOULD GO NUTS WHILE MR BIEBER'S SPEECH WAS PREDICTABLE ENOUGH THESE AREN'T VERY PREDICTABLE TIMES FOR THE AUTO INDUSTRY ALTHOUGH GM IS SHOWING SIGNS OF IMPROVEMENT IN ITS DOMESTIC OPERATIONS IT STILL NEEDS TO TRIMS TENS OF THOUSANDS OF HOURLY WORKERS FROM ITS PAYROLL TO BECOME COMPETITIVE GM EXECUTIVES HAVE SAID THE COMPANY IS IN THE PROCESS OF TRIMMING 54000 BLUECOLLAR WORKERS BY MID1990S AND PROBABLY WILL NEED FURTHER CUTS TO MATCH THE EFFICIENCY OF LEANER JAPANESE AND DOMESTIC RIVALS FORD AND CHRYSLER MEANWHILE ARE GAINING MARKET SHARE AND CAN BASICALLY AFFORD TO GUARANTEE JOBS TO ALL THEIR WORKERS ALL THIS IS LIKELY TO MAKE THE UAW'S TRADITIONAL TACTIC OF PATTERN BARGAINING FOR THE BIG THREE MORE DIFFICULT TO CARRY OUT IT'S GOING TO BE AS TOUGH A SET OF NEGOTIATIONS AS WE'VE EVER HAD SAID DICK VANNATTA PRESIDENT OF UAW LOCAL 662 WHICH REPRESENTS GM COMPONENTS PLANTS IN ANDERSON IND DURING THE PAST 13 YEARS LOCAL 662'S MEMBERSHIP HAS SHRUNK TO 4200 WORKERS FROM 15000 MR VANNATTA IS CONCERNED THAT GM WILL ATTEMPT TO PLACE MORE WORK WITH OUTSIDE SUPPLIERS COSTING MORE JOBS WITHIN THE COMPANY THE BIG THREE CHIEF EXECUTIVES HAVE COMPLAINED LONG AND VOCIFEROUSLY ABOUT THE HIGH COST OF HEALTH CARE BUT MR BIEBER WAS EMPHATIC THAT THE ONLY RELIEF ON THIS FRONT WOULD COME FROM NATIONAL REFORM NOW IF THE BIG THREE EXECUTIVES SERIOUSLY WANT TO GET HELP ON HEALTH CARE COSTS I CAN TELL THEM WHERE TO GET IT HE SAID THEY CAN JOIN US IN HELPING TO TURN AROUND THOSE BACKWARD MEMBERS OF CONGRESS WHO WANT BANDAIDSTYLE HEALTH CARE REFORM THE UAW HAS SUPPORTED A SINGLEPAYER HEALTH CARE SYSTEM FOR MANY YEARS MR BIEBER WAS EVEN MORE EMPHATIC IN WARNING AGAINST ANY COMPANY ATTACK ON RETIREE HEALTH CARE INSURANCE WHICH ACCOUNTS FOR 40 OF THE BIG THREE'S HEALTH CARE BILL UNLESS YOU ARE LOOKING FOR A STRIKE HE WARNED THE BIG THREE CHIEF EXECUTIVES DON'T EVEN TRY TO MESS WITH RETIREE HEALTH CARE SEPARATELY GM SAID IT WILL GIVE AN UNNAMED CAR UNDER DEVELOPMENT TO ITS OKLAHOMA CITY PLANT AFTER IT STOPS BUILDING THE BUICK CENTURY AND OLDSMOBILE CIERA IN 1996 WORKERS AT THE OKLAHOMA CITY PLANT HAVE BEEN MORE UPBEAT ABOUT THEIR PLANT'S FUTURE EVER SINCE GM DISCLOSED IT WOULD HOLD ITS ANNUAL MEETING IN OKLAHOMA CITY NEXT MONTH 9304270151 930427 WHO'S NEWS HEALTHWATCH INC HEALTHWATCH INC BROOMFIELD COLO JIM MCVEIGH 45 YEARS OLD WAS NAMED CHIEF OPERATING OFFICER OF THIS MEDICAL INSTRUMENT MAKER HE WAS VICE PRESIDENT OPERATIONS HE SUCCEEDS JOHN ERICKSON 49 WHO THE COMPANY SAID RESIGNED TO PURSUE OTHER INTERESTS 9304270150 930427 WHO'S NEWS NUKOTE HOLDING INC NUKOTE HOLDING INC DALLAS DAVID F BRIGANTE 40 YEARS OLD CURRENTLY PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MAKER OF PRINTING PRODUCTS WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER HE SUCCEEDS LARRY H HOLSWADE 56 WHO WILL REMAIN WITH THE COMPANY AS VICE CHAIRMAN AND A DIRECTOR A SPOKESMAN DECLINED TO DISCUSS THE REASONS FOR THE MANAGEMENT CHANGE 9304270149 930427 WHO'S NEWS ZEOS INTERNATIONAL LTD ZEOS INTERNATIONAL LTD MINNEAPOLIS CHARLES T HENDERSON WAS NAMED CHIEF FINANCIAL OFFICER OF THIS PERSONALCOMPUTER MAKER HE WAS VICE PRESIDENT OF FINANCE HE SUCCEEDS JOHN K BAKEWELL WHO RESIGNED TO ACCEPT A POSITION AT ANOTHER COMPANY 9304270148 930427 WHO'S NEWS DELL COMPUTER CORP DELL COMPUTER CORP AUSTIN TEXAS DENNIS JOLLY 43 YEARS OLD FORMER VICE PRESIDENT AND GENERAL MANAGER OF THE GOVERNMENT EDUCATION AND MEDICAL OPERATING DIVISION AT THE COMPUTER COMPANY WAS NAMED TO THE NEW POSITION OF GROUP VICE PRESIDENT OF INDIRECT SALES IN ADDITION ROB HOWE 46 FORMER VICE PRESIDENT AND GENERAL MANAGER OF DELL DIRECT WAS NAMED TO THE NEW POSITION OF GROUP VICE PRESIDENT OF DIRECT SALES 9304270147 930427 WHO'S NEWS AIR PRODUCTS & CHEMICALS INC AIR PRODUCTS & CHEMICALS INC ALLENTOWN PA L PAUL BREMER III MANAGING DIRECTOR OF KISSINGER ASSOCIATES AND FORMER US AMBASSADOR TO THE NETHERLANDS AND AMBASSADORATLARGE FOR COUNTERTERRORISM AND TAKEO SHIINA CHAIRMAN OF IBM JAPAN LTD WERE ELECTED DIRECTORS OF THIS SUPPLIER OF INDUSTRIAL GASES AND SPECIALTY CHEMICALS FILLING VACANCIES ON THE BOARD 9304270146 930427 WHO'S NEWS STEEL TECHNOLOGIES INC STEEL TECHNOLOGIES INC LOUISVILLE KY BRADFORD T RAY 35 YEARS OLD VICE PRESIDENTMANUFACTURING SINCE 1987 AND PRESIDENT OF THE COMPANY'S MITECH STEEL JOINT VENTURE WAS PROMOTED TO EXECUTIVE VICE PRESIDENT MR RAY HEADS THE COMPANY'S ENGINEERING DEPARTMENT CONSTRUCTION DIVISION AND MANUFACTURING OPERATIONS IN ADDITION MICHAEL J CARROLL 36 VICE PRESIDENT OF SALES SINCE 1987 WAS NAMED SENIOR VICE PRESIDENT OF SALES STEEL TECHNOLOGIES PROCESSES FLATROLLED STEEL FOR THE AUTOMOTIVE COMMUNICATIONS ELECTRICAL AND OTHER INDUSTRIES 9304270145 930427 MARKETING & MEDIA QVC NETWORK IS TO FORM VENTURE WITH MEXICO FIRM WEST CHESTER PA QVC NETWORK INC NOW RUN BY FORMER FOX INC CHAIRMAN BARRY DILLER HAS TENTATIVELY AGREED TO FORM A JOINT VENTURE WITH GRUPO TELEVISA SA DE CA TO SERVE MEXICO SPAIN AND LATIN AMERICA IN SPANISH AND BRAZIL AND PORTUGAL IN PORTUGUESE THE PARTNERS EXPECT TO BEGIN SERVICE IN NOVEMBER IN MEXICO AND EXPAND TO SPANISHSPEAKING US MARKETS LATER PRODUCED LIVE FROM MEXICO THE SERVICE WILL BE DISTRIBUTED VIA OVERTHEAIR BROADCAST TELEVISION CABLE TELEVISION AND SATELLITE THE MOVE TO MEXICO AND BEYOND IS THE FIRST BIG STEP MR DILLER HAS TAKEN WITH QVC SINCE DECEMBER WHEN HE WAS NAMED CHIEF EXECUTIVE OFFICER AND INVESTED 25 MILLION FOR AN EQUITY STAKE IN THE COMPANY LIKE MANY CABLE PROGRAMMERS NOW GOING ABROAD FOR BUSINESS QVC HOPES TO REAP BIG PROFITS IN UNTAPPED MARKETS BY AIRING PROGRAMS AND SELLING PRODUCTS CURRENTLY QVC REACHES MORE THAN 44 MILLION CABLE HOMES AND THREE MILLION HOMES WITH SATELLITE DISHES GRUPO TELEVISA IS THE LARGEST MEDIA AND ENTERTAINMENT COMPANY IN MEXICO IT ALSO OWNS UNIVISION THE SPANISHLANGUAGE NETWORK IN THE US 9304270144 930427 WHO'S NEWS AMDURA CORP AMDURA CORP TULSA OKLA C DAVID BUSHLEY 50 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF CHIEF FINANCIAL OFFICER OF THE MAKER OF HEAVYLIFTING AND WASTEMANAGEMENT EQUIPMENT MR BUSHLEY WAS PREVIOUSLY CHIEF LENDING OFFICER AT DIME SAVINGS BANK IN NEW YORK AMDURA SAID IT DIDN'T PREVIOUSLY HAVE A CHIEF FINANCIAL OFFICER BECAUSE ITS DIRECTORS WERE HEAVILY INVOLVED IN ITS OPERATIONS UNTIL IT EMERGED FROM CHAPTER 11 PROTECTION FROM CREDITORS IN OCTOBER 9304270143 930427 WHO'S NEWS FERRO CORP FERRO CORP CLEVELAND WERNER F BUSH 53 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER AS PART OF AN EFFORT TO CONSOLIDATE MANAGEMENT RESPONSIBILITIES AT THIS MAKER OF CHEMICALS COATINGS CERAMICS AND PLASTICS MR BUSH WHO FORMERLY WAS SENIOR VICE PRESIDENT COATINGS COLORS AND CERAMICS NOW IS RESPONSIBLE FOR CHEMICALS AND PLASTICS TOO HECTOR R ORTINO 50 WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL/ADMINISTRATIVE OFFICER MR ORTINO WHO PREVIOUSLY WAS SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER TAKES OVER RESPONSIBILITIES FOR STRATEGIC PLANNING CORPORATE DEVELOPMENT LEGAL AFFAIRS AND HUMAN RESOURCES AS WELL AS FINANCE 9304270142 930427 WHO'S NEWS CENTRAL LOUISIANA ELECTRIC CO CENTRAL LOUISIANA ELECTRIC CO PINEVILLE LA GREGORY L NESBITT PRESIDENT OF THIS UTILITY WAS NAMED TO THE ADDITIONAL POSITION OF CHIEF EXECUTIVE OFFICER MR NESBITT 55 YEARS OLD SUCCEEDS SCOTT O BRAME 64 WHO IS RETIRING AS CHIEF EXECUTIVE AND CHAIRMAN CENTRAL LOUISIANA ELECTRIC HASN'T NAMED A NEW CHAIRMAN AS YET MR BRAME WILL REMAIN A MEMBER OF THE BOARD UNTIL JUNE 30 9304270141 930427 WHO'S NEWS BANCORP NEW JERSEY INC BANCORP NEW JERSEY INC SOMERVILLE NJ BERNARD ADLER 56 YEARS OLD AND GERALD A JOHNSON 44 WERE ELECTED TO FILL SEATS ON THE NINEMEMBER BOARD OF THE COMPANY AND ITS UNIT NEW JERSEY SAVINGS BANK MR JOHNSON EXECUTIVE VICE PRESIDENT AND TREASURER OF THE SOMERSET MEDICAL CENTER SUCCEEDS ALBERT MACCHI WHO DIED MR ADLER WHO OPERATES SEVERAL REAL ESTATE COMPANIES SUCCEEDS ROBERT STURKEN WHO RETIRED BUT REMAINS A DIRECTOR EMERITUS 9304270140 930427 ECONOMY SALES OF EXISTING SINGLEFAMILY HOMES FELL IN MARCH DUE TO FLOODS AND STORMS BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL EXISTING SINGLEFAMILY HOME SALES SLIPPED 29 IN MARCH TO THEIR LOWEST LEVEL SINCE LAST JUNE AS FLOODING AND SNOWSTORMS HAMMERED THE NATION'S HOUSING MARKETS THE EXISTING SALES FELL TO AN ANNUALIZED SEASONALLY ADJUSTED PACE OF 3360000 DURING THE MONTH FROM A REVISED PACE OF 3460000 IN FEBRUARY ACCORDING TO THE NATIONAL ASSOCIATION OF REALTORS THE MARCH PACE WAS ALSO OFF FROM THE YEAREARLIER RATE OF 35 MILLION HOUSING ANALYSTS SAID THAT UNDERLYING DEMAND REMAINS STRONG HOWEVER AND THAT SALES HAVE PICKED UP BRISKLY THROUGH MANY PARTS OF THE COUNTRY SINCE A BLIZZARD SLAMMED INTO THE EASTERN SEABOARD LAST MONTH AND EFFECTIVELY SHUT DOWN SALES FOR SEVERAL DAYS INDEED THE MORTGAGE BANKERS ASSOCIATION'S WEEKLY INDEX OF HOME LOAN PURCHASE VOLUME IS RUNNING ABOUT 61 ABOVE NORMAL AS BUYERS FLOCK INTO THE MARKET DUE TO INCREASED AFFORDABILITY FROM A RENEWED DROP IN RESIDENTIAL MORTGAGE RATES TO THEIR LOWEST LEVEL IN 20 YEARS THE 30YEAR FIXEDRATE MORTGAGE FELL TO 746 FRIDAY FROM 750 THE PREVIOUS WEEK ACCORDING TO A SURVEY OF LENDERS BY HSH ASSOCIATES INC A BUTLER NJ MORTGAGE PUBLISHING FIRM WE'RE SEEING SINGLES CHILDLESS COUPLES AND FAMILIES WITH KIDS ALL TRYING TO GET THE BEST BUY WITH THE LOWEST RATE SAID WILLIAM S CHEE PRESIDENT OF THE REALTORS' TRADE GROUP BASED IN WASHINGTON DC AND A HONOLULU BROKER BOTH ENTRYLEVEL AND TRADEUP SEGMENTS OF THE MARKET ARE BUSY JOHN A TUCCILLO CHIEF ECONOMIST FOR THE TRADE GROUP ADDED THAT HOUSING MAY BE ONE OF THE BRIGHTEST POINTS OF THE ECONOMY THE ECONOMY WILL CONTINUE TO STRUGGLE BUT MOVE FORWARD BOLSTERED CONSIDERABLY BY A STRONG HOUSING INDUSTRY MR TUCCILLO SAID LOW RATES BETTER CONDITIONS FOR TRADEUP BUYERS AND AN AMPLE SUPPLY OF FIRSTTIME BUYERS WILL MAKE THE MARKET SING INTO THE SUMMER RICHARD J LOUGHLIN PRESIDENT AND CHIEF EXECUTIVE OF CENTURY 21 REAL ESTATE CORP THE IRVINE CALIF BROKERAGE UNIT OF METROPOLITAN LIFE INSURANCE CO SAID THAT HIS COMPANY'S SALES NATIONWIDE SURGED 35 IN MARCH FROM FEBRUARY AND THAT APRIL SALES ARE CONTINUING STRONG HE SAID THAT HIS BROKERS REPORT PICKUPS IN ACTIVITY THROUGHOUT THE COUNTRY AND THAT EVEN HARDESTHIT SOUTHERN CALIFORNIA SHOWS A SIGN OF LIFE STEVEN COCHRANE SENIOR ECONOMIST AT REGIONAL FINANCIAL ASSOCIATES A WEST CHESTER PA CONSULTING FIRM SAID THE HOUSING MARKETS ARE STRONGEST IN WHAT HE DESCRIBES AS A SOUTHERN CRESCENT THAT BEGINS IN NORTH CAROLINA EXTENDS TO THE GULF COAST WEST TO TEXAS AND THEN UP TO DENVER THAT'S WHERE MOST OF THE EMPLOYMENT GROWTH IS OCCURRING RIGHT NOW MR COCHRANE SAID THE RESIDENTIAL REALESTATE MARKETS HAVE STARTED TO BOUNCE BACK THE STABLE MIDWEST HAS LED THE HOUSING RECOVERY AND IN MARCH EXISTINGHOME SALES THERE ROSE 33 FROM FEBRUARY SALES IN THE EAST AND SOUTH WERE OFF INFLUENCED BOTH BY BAD WEATHER AND CONTINUED ECONOMIC SLUGGISHNESS IN THE NORTHEAST THE WEST REMAINED MORIBUND IN MARCH AS CALIFORNIA'S HUGE HOUSING MARKET SUFFERED FROM BOTH UNUSUALLY RAINY WEATHER AND CONTINUED RECESSION CALIFORNIA'S EXISTINGHOME SALES IN MARCH FELL 79 TO AN ANNUALIZED SEASONALLY ADJUSTED PACE OF 384220 FROM 416950 IN FEBRUARY ACCORDING TO THE CALIFORNIA ASSOCIATION OF REALTORS LIKE THE NATIONAL ASSOCIATION OF REALTORS MOST OF THE SALES MEASURED BY THE CALIFORNIA TRADE GROUP ARE THOSE THAT CLOSED IN THE MONTH A BETTER LEADING INDICATOR OF HOUSING SALES IS THE MORTGAGE BANKER'S INDEX OF LOAN PURCHASE VOLUME 9304270139 930427 REVIEW & OUTLOOK EDITORIAL RUSSIA'S AWESOME REFERENDUM SOME DAYS IT SEEMS THAT NO ONE EVER GETS ANYTHING RIGHT ABOUT RUSSIA WE WERE TOLD THAT ITS DEMOCRACY HAS FRAGILE ROOTS THAT PEOPLE REALLY WANT AN IRON HAND WE WERE TOLD RUSSIANS WERE SO APATHETIC FEW WOULD VOTE IN SUNDAY'S REFERENDUM WE WERE TOLD MANY SEPARATIST REGIONS WOULD BOYCOTT THE VOTE WE WERE TOLD FEW RUSSIANS SUPPORT OR UNDERSTAND FREE MARKET REFORM WE CAN'T REMEMBER THE NUMBER OF TIMES WE HEARD THAT MR YELTSIN WAS ABANDONING REFORM OR THAT HE'D LOST TOUCH WITH THE PEOPLE WE'VE EVEN HEARD TALK OF THE POSTYELTSIN ERA WRONG WRONG WRONG WRONG WRONG YES RUSSIA HAS HORRENDOUS PROBLEMS BUT SUNDAY'S VOTE WAS A DISPLAY OF AWESOME STRENGTH THE VOTERS SUPPORTED A STRONG EXECUTIVE BRANCH AND FREE MARKET REFORM THEY DECISIVELY REJECTED THE PLEAS OF THE SOCALLED CENTRISTS AND OTHER ANTIYELTSINITES SO LET'S TAKE A BREAK FROM THE GLOOM OF MANY RUSSIANS NOT TO MENTION WESTERN COMMENTATORS AND LOOK AT WHAT HAS BEEN ACCOMPLISHED OVER THE PAST TWO YEARS IT'S A DIFFERENT COUNTRY SOVIET CITIZENS ALWAYS PRESERVED ISLANDS OF SANITY MOST TRIED TO KEEP THEIR APARTMENTS NICE EVEN IF THE HALLWAYS STANK OF URINE NOW THERE ARE MANY MORE ISLANDS THERE ARE STORES THAT ARE CLEAN AND BRIGHT PRODUCTS ARE AVAILABLE THAT DO NOT INSULT THE CONSUMER WITH THEIR SHABBINESS RUSSIANS ARE NOW IN DAILY TOUCH WITH THE WIDER WORLD FROM TRANSLATED BBC NEWS REPORTS TO MEXICAN SOAP OPERAS FASHIONS HAVE CHANGED WOMEN APPLY THEIR MAKEUP WITH A LIGHTER TOUCH WESTERN THINGS AND LIFESTYLES ARE NO LONGER CONSIDERED MAGICAL AND ALOOF EXCEPT FOR SOME OLD INTELLECTUALS PEOPLE THINK IN NEW WAYS THE UNSTATED PREMISE OF EVERY CONVERSATION IS THAT A PSYCHOLOGICAL TRANSFORMATION IS UNDER WAY AND IT CAN'T BE MEASURED IN ECONOMIC STATISTICS COMPARING WAGE AND INFLATION STATISTICS SHOWS A GREAT DROP IN RUSSIAN LIVING STANDARDS SINCE REFORM BUT THAT IGNORES THE FACT THAT PEOPLE NO LONGER HAVE TO SPEND TWO OR FOUR OR SIX HOURS A DAY STANDING IN LINE REMEMBER ALSO THAT BEFORE PRICE REFORM PEOPLE HAD MOUNTAINS OF RUBLES BUT NOTHING TO SPEND THEM ON ONE GROUP HOWEVER THAT IS HAVING A TOUGH GO IS PENSIONERS FOR THEM MANEUVERING THROUGH THE NEW SYSTEM IS NOT SO EASY THERE HAVE BEEN CONSTANT WARNINGS THAT RUSSIA IS ABOUT TO ENDURE MASSIVE UNEMPLOYMENT BUT IN RUSSIAN COMPANIES WAGES OFTEN MAKE UP ONLY 2 TO 4 OF TOTAL COSTS A FIFTH OR TENTH OF THE PROPORTION IN WESTERN FIRMS SOME RUSSIAN MANAGERS SAY THAT IT'S NOT WORTH THE BLOODSHED TO CUT EVEN HALF THE STAFF BECAUSE OF THE LIMITED EFFECT ON THE BOTTOM LINE ECONOMIC REFORM CZAR BORIS FYODOROV SAYS IT COSTS THE STATE THREE TIMES AS MUCH TO KEEP SUCH PLANTS GOING THAN TO SHUT IT AND CONTINUE PAYING THE WORKERS PRODUCTIVITY WOULD IMPROVE AND BUDGETARY AND INFLATION PRESSURES WOULD LESSEN IF RUSSIA'S BANKRUPTCY LAW WERE ENFORCED AND USELESS PLANTS CLOSED BUT ALL IN GOOD TIME BORIS YELTSIN'S GREAT SUCCESS HAS BEEN IN KEEPING A TOUGH BRAND OF ECONOMIC REFORMERS IN HIS CABINET ANATOLY CHUBAIS RHYMES WITH YOUBUYUS AND DMITRI VASILIEV HAVE BEEN RUNNING A PRIVATIZATION PROGRAM THAT IS AN HISTORIC ACHIEVEMENT CREDIT ALSO HAS TO GO TO JEFFREY SACHS'S HARVARD TEAM WHICH ADVISED IN VOLGOGRAD 1000 LARGE COMPANIES WILL BE PRIVATIZED BY SUMMER NATIONWIDE EIGHT MILLION WORKERS SWITCHED FROM PUBLIC TO PRIVATE EMPLOYMENT LAST YEAR A NUMBER THAT WILL BE DWARFED BY THIS YEAR'S FIGURE AS SUNDAY'S VOTE INDICATED EMPLOYEESHAREHOLDERS HAVE BECOME A CONSTITUENCY FOR REFORM ROUGHLY TWOTHIRDS OF VOTERS WANT NEW PARLIAMENTARY ELECTIONS BUT BECAUSE OF ABSURD LEGAL ARRANGEMENTS THAT ISN'T ENOUGH TO PRODUCE THEM AUTOMATICALLY MR YELTSIN SHOULD IGNORE THE PARLIAMENT AND PUSH AHEAD TO INSTALL A NEW CONSTITUTION MANY PEOPLE WHO SUPPORTED HIM SUNDAY DID SO NOT BECAUSE OF HIS PERSONAL QUALITIES BUT BECAUSE THEY WANT A CONSTITUTION WITH A STRONG EXECUTIVE BRANCH MR YELTSIN COULD ALSO SEIZE THE MOMENT TO GAIN CONTROL OF THE CENTRAL BANK HE SHOULD ELIMINATE THE PUNITIVE EXPORT TAXES THAT ENCOURAGE SMUGGLING HE SHOULD BUILD A POLITICAL PARTY SO THAT WHEN ELECTIONS COME HE CAN PRODUCE A REFORMIST SLATE RUSSIAN CHAOS WILL NOT END SOON POWERFUL INDUSTRIES ARE STILL GOING TO USE THEIR CLOUT TO SHUT OFF COMPETITION THE OIL INDUSTRY IS FRUSTRATING EFFORTS TO DEMONOPOLIZE SERVICE STATIONS CORRUPTION WILL BE RIFE AND DON'T ASSUME THAT SIMPLY BECAUSE SOMEONE HAS REFORMIST IDEAS HE IS HONEST BY WESTERN STANDARDS IT IS UNREALISTIC TO EXPECT A STABLE NORMAL GOVERNMENT ON TOP OF SUCH A PROFOUND SOCIAL AND POLITICAL TRANSFORMATION BUT WITH SUNDAY'S VOTE THE RUSSIAN PEOPLE HAVE MADE MARKET REFORM IRREVERSIBLE THEY DID IT KNOWING THAT HARDSHIPS WILL CONTINUE MANY OF THE RUSSIANS WE SPOKE TO THIS MONTH TALKED ABOUT MAKING LIFE BETTER FOR THEIR CHILDREN SUNDAY'S VOTE WAS A BID FOR A BRIGHTER FUTURE 9304270138 930427 WHO'S NEWS ZURN INDUSTRIES INC ZURN INDUSTRIES INC ERIE PA RONALD A DRAPEAU 46 YEARS OLD FORMERLY CHIEF FINANCIAL OFFICER WAS NAMED TO THE NEW POST OF CHIEF EXECUTIVE OFFICER OF THIS COMPANY'S LYNX GOLF UNIT JOHN CAREY 63 CONTINUES AS PRESIDENT OF THE UNIT WHICH MANUFACTURES GOLF CLUBS ZURN'S PRESIDENT WILLIAM A FREEMAN 49 WILL SERVE AS ACTING CHIEF FINANCIAL OFFICER UNTIL A SUCCESSOR TO MR DRAPEAU IS APPOINTED ZURN INDUSTRIES DESIGNS AND MAKES POWER SYSTEMS AND EQUIPMENT 9304270137 930427 LUBRIZOL EXPECTS 1993 OPERATING PROFIT TO MATCH 1992 FIGURE SPECIAL TO THE WALL STREET JOURNAL CLEVELAND LUBRIZOL CORP HAS REVERSED AN EARNINGS DROP SUSTAINED IN LAST YEAR'S SECOND HALF AND MANAGEMENT EXPECTS OPERATING PROFITS FOR 1993 TO APPROXIMATE LAST YEAR'S NET INCOME THE SPECIALTY CHEMICALS CONCERN IS GAINING MARKET SHARE PLANNING SEVERAL ACQUISITIONS AND TAKING STEPS TO REDUCE COSTS ALL OF WHICH SHOULD HELP PROFITS IN FUTURE YEARS LE COLEMAN CHAIRMAN AND CHIEF EXECUTIVE SAID IN AN INTERVIEW LUBRIZOL OFFICIALS SAID THEY ARE COMFORTABLE WITH OPERATING EARNINGS ESTIMATES FOR 1993 OF 180 TO 185 A SHARE WHICH WOULD BE ABOUT THE SAME AS 1992 NET OF 1246 MILLION OR 181 A SHARE NET INCOME WILL FALL HOWEVER BECAUSE THE COMPANY IN THE 1993 FIRST QUARTER MADE CHANGES IN ACCOUNTING FOR POSTRETIREMENT HEALTH BENEFITS AND INCOME TAXES THAT RESULTED IN A CHARGE OF 394 MILLION OR 58 CENTS A SHARE BECAUSE LUBRIZOL MAKES MORE THAN HALF OF ITS SALES ABROAD EARNINGS WILL DEPEND TO SOME EXTENT ON CURRENCY FLUCTUATIONS OFFICIALS SAID THE STRONGER US DOLLAR IN THE FIRST QUARTER REDUCED REVENUES BY 2 AND CUT A PENNY A SHARE FROM FIRSTQUARTER OPERATING PROFITS YESTERDAY LUBRIZOL REPORTED FIRSTQUARTER OPERATING EARNINGS OF 354 MILLION OR 52 CENTS A SHARE DOWN FROM 441 MILLION OR 64 CENTS A SHARE A YEAR EARLIER THE RESULTS FOR THE LATEST QUARTER WERE BETTER THAN SOME ANALYSTS EXPECTED AND FAR EXCEEDED THE 28 CENTS AND 24 CENTS A SHARE EARNED IN LAST YEAR'S THIRD AND FOURTH QUARTERS RESPECTIVELY AFTER THE NONRECURRING CHARGE LUBRIZOL HAD A FIRSTQUARTER NET LOSS OF 39 MILLION OR SIX CENTS A SHARE REVENUE IN THE QUARTER FELL TO 3673 MILLION FROM 417 MILLION HOWEVER THE 1993 FIGURE EXCLUDED SALES OF AN AGRICULTURAL SEED BUSINESS SOLD TO A JOINTLY OWNED PARTNERSHIP LAST DECEMBER THE MOST RECENT QUARTER DID INCLUDE LUBRIZOL'S SHARE OF PROFITS OF THAT OPERATION JANUARY SALES WERE VERY WEAK CONTINUING THE TREND OF THE 1992 SECOND HALF MR COLEMAN SAID BUT SHIPMENTS BEGAN INCREASING IN FEBRUARY AND MARCH WAS VERY STRONG HE SAID WITH SHIPMENTS FROM PLANTS IN FRANCE AND THE UNITED KINGDOM UP SHARPLY 9304270136 930427 REVIEW & OUTLOOK EDITORIAL CUOMO'S BABY TAX THANKS TO HIGH INHERITANCE TAXES NEW YORK STATE IS ONE OF THE NATION'S MOST EXPENSIVE PLACES TO DIE SOON IT MAY ALSO BE AMONG THE MOST EXPENSIVE PLACES TO BE BORN IF GOVERNOR MARIO CUOMO HAS HIS WAY THE FIRST THING TO GREET EVERY NEWBORN NEW YORKER RIGHT AFTER THE TRADITIONAL SLAP ON THE BOTTOM WILL BE A TAX BILL FOR 300 SINCE 300000 CHILDREN ENTER THE WORLD EACH YEAR IN THE EMPIRE STATE THAT ADDS UP TO AN ANNUAL BOOTY OF 90 MILLION MR CUOMO WANTS TO USE THAT MONEY TO CREATE A NOFAULT MALPRACTICE INSURANCE SYSTEM FOR INFANTS WHO ARE INJURED DURING BIRTH PARENTS WOULD BE FORBIDDEN TO SUE DOCTORS OR HOSPITALS INSTEAD THEY WOULD FILE CLAIMS WITH A STATE NEWBORN COMPENSATION COMMISSION WHICH WOULD DETERMINE WHO SHOULD BE COMPENSATED AND BY HOW MUCH COMPENSATION MIGHT BE IN THE FORM OF A LUMPSUM PAYMENT OR A LIFETIME ANNUITY IT COULD INCLUDE NOT ONLY MEDICAL CARE BUT SUCH THINGS AS REDESIGN OF A HOME TO ACCOMMODATE A DISABLED CHILD THE STATE DEPARTMENT OF HEALTH ESTIMATES THAT 1000 INJURED NEWBORNS WOULD BE COVERED EVERY YEAR COMPARED WITH THE 50 OR SO WHO NOW RECEIVE COMPENSATION THROUGH THE HITORMISS TORT SYSTEM THERE ARE TWO BIG PROBLEMS HERE FIRST IS HOW TO LIMIT COMPENSATION TO JUST 1000 NEWBORNS A YEAR ALTHOUGH MR CUOMO'S PROPOSED BILL WOULD ALLOW PAYMENTS ONLY TO INFANTS WHOSE INJURIES MAY HAVE BEEN CAUSED BY DOCTOR NEGLIGENCE THE HISTORY OF SUCH GOVERNMENT PROGRAMS IS THAT THEY TEND TO GROW LIKE TOPSY A CLEVER LAWYER COULD ARGUE THAT A DOCTOR WAS NEGLIGENT IN NOT WARNING A PREGNANT PATIENT TO AVOID DRUGS OR ALCOHOL OR UNPROTECTED SEX AND PRETTY SOON ALBANY COULD BE PAYING OUT COMPENSATION TO CRACK BABIES BABIES WITH FETALALCOHOL SYNDROME AND HIVPOSITIVE BABIES IT'S NOT HARD TO IMAGINE FINDING A EXPANSIVEMINDED JUDGE IN NEW YORK THE SECOND PROBLEM IS WHO WILL PAY THE LEGISLATION SPECIFIES THAT THE 300 TAX WOULD BE SPLIT BETWEEN THE HOSPITAL AND THE ATTENDING PHYSICIAN BOTH WOULD BE PROHIBITED FROM PASSING IT ALONG TO THE PATIENT ON THE GROUNDS THAT THE RESULTING SAVINGS IN MALPRACTICE INSURANCE PREMIUMS WOULD MORE THAN MAKE UP FOR THE TAX IN REALITY OF COURSE WAYS ARE ALWAYS FOUND TO SHIFT SUCH COSTS ONTO THE BILLS OF PRIVATE PATIENTS WITH A TYPICAL SALES TAX OF 825 AND AN EFFECTIVE MARGINAL INCOME TAX RATE OF 93 THE LAST THING NEW YORKERS NEED IS A TAX ON BIRTH ITSELF WE RECOMMEND THAT THE GOVERNOR STICK TO KISSING BABIES NOT TAXING THEM 9304270135 930407 CHILDREN WHO MURDER BY JEFFREY DANZINGER FOR NEARLY TWO MONTHS NOW THE PEOPLE OF BRITAIN HAVE AGONIZED OVER THE BRUTAL SLAYING OF TWOYEAROLD JAMES BULGER LITTLE JAMES WAS ABDUCTED FROM A LIVERPOOL SHOPPING CENTER WHILE HIS MOTHER STOOD IN LINE AT A BUTCHER SHOP CAUGHT ON SECURITY CAMERA WAS A YOUNG BOY LEADING THE INNOCENT CHILD AWAY BY THE HAND NOT SO INNOCENT WAS THE TREATMENT JAMES RECEIVED SOON AFTER ONCE HIS ABDUCTOR LINKED UP WITH ANOTHER YOUNG COHORT JAMES WAS BEATEN KILLED AND HURLED AT AN ONRUSHING TRAIN LATER HIS BATTERED BODY WAS FOUND ON A RAILROAD EMBANKMENT THE TWO BOYS WHO HAVE BEEN CHARGED WITH THE CRIME ARE 10 YEARS OLD THE CRIME HAS SENT SHOCK WAVES OF FEAR AND AGONY ACROSS ENGLAND GOD HELP THE ENGLISH SHOULD THEY EVER LET THE SHOCK SUBSIDE IN AMERICA BY SAD CONTRAST YOUTH VIOLENCE IS A FACT OF LIFE WHILE NO PUBLIC OFFICIAL HAS PASSED UP AN OPPORTUNITY TO HARP ON THE ECONOMY FOR THE PAST YEAR OR TWO WE HAVE SEEN ALMOST NOTHING NEW IN THE BATTLE AGAINST YOUNG KILLERS WHO ARE MAKING SOME OF OUR NEIGHBORHOODS RESEMBLE HUGE OPENAIR NINTENDO GAMES THE FACT THAT GANGS AND OTHER YOUNG GUNS ARE FLOURISHING SAYS SOMETHING ABOUT PARENTAL RESPONSIBILITY ECONOMIC MISFORTUNE AND RACE RELATIONS BUT IT SAYS A LOT MORE ABOUT THE LACK OF DETERRENCE IF ECONOMIC REFORM IS DESERVING OF TOUGH MEASURES AND SACRIFICE THEN THE TOUGHEST MEASURES ARE IN ORDER FOR THE CRIMINAL ELEMENT SURELY AMERICA'S GREATEST SOURCE OF SHAME AND EMBARRASSMENT IN THE FREE WORLD TOUGHER MEASURES ARE LONG OVERDUE FOR TEEN KILLERS THE TIME HAS COME TO SEE THEM SIMPLY FOR WHAT THEY ARE VILLAINS MANY DEMONSTRATE NO REMORSE REVEALING AN ATTITUDE OF MALIGNITY AND CALCULATION HALLMARKS OF SINISTER PREMEDITATION IN RESPONDING TO THE JAMES BULGER KILLING FORMER BRITISH HOME SECRETARY KENNETH BAKER SAID WHEN A YOUNG INNOCENT TODDLER IS KILLED IN A BRUTAL WAY THEN YOU ARE BEYOND THE EDGE OF EVIL YOU ARE INTO THE HEART OF DARKNESS CRIMES LIKE THIS ARE RELATIVELY NEW TO BRITAIN WHERE THE MURDER RATE 13 PER 100000 PEOPLE IS ONE OF THE LOWEST IN THE WORLD IN THE US MURDERS OCCUR AT A RATE OF 10 PER 100000 AND THE NUMBER OF YOUNG KILLERS IS ESCALATING RAPIDLY NATIONALLY THE ARREST RATE FOR HOMICIDES BY 17YEAROLDS ROSE BY 121 BETWEEN 1985 AND 1991 AS THESE PRETENDERS TO THE FUTURE HONE MURDER TO A FINE ART WE MUST HONE JUSTICE EQUALLY WE MUST REFORM FAILING POLICIES AND FORGO THE BELIEF THAT WHEN IT COMES TO YOUTH VIOLENCE REHABILITATION IS THE CORNERSTONE OF DETERRENCE IT IS NOT REHABILITATION SEEKS TO REFORM THE WAYWARD YOUTH IN CUSTODY IT DOES NOTHING TO PREVENT OTHERS FROM CHARTING THE SAME COURSE WE REMAIN COMMITTED TO A BRAND OF SOCIAL ENGINEERING THAT HAS EXTRACTED AN ENORMOUS COST IN LIVES AS WELL AS DOLLARS IF PROGRESS IS SLOW IN COMING IT SURELY IS NOT FOR LACK OF IDEAS IN CALIFORNIA WHERE THE CRISIS HAS REACHED EPIC PROPORTIONS THE CLAREMONT INSTITUTE'S LANCE IZUMI RECENTLY OFFERED A NUMBER OF COMMONSENSE REFORMS TO EXISTING PROBLEMS ONE IS OBVIOUS TREAT THOSE IN POSSESSION OF THEIR FACULTIES AS ADULTS MORE OFTEN ANOTHER ADDRESSES THE LEGAL PROCEDURE TO RELEASE JUVENILES FROM THE CALIFORNIA YOUTH AUTHORITY AT THE AGE OF 25 REGARDLESS OF THE SEVERITY OF THE CRIME THIS POLICY INSTALLED AT A TIME WHEN DELINQUENTS WERE KNOWN MORE FOR STEALING BICYCLES THAN SHOOTING BYSTANDERS IS SORELY OUTDATED SOME IDEAS ARE BEING MET BY ACTION THE STATE'S ATTORNEY GENERAL DAN LUNGREN IS PROPOSING A NUMBER OF CHANGES TO THE JUVENILE JUSTICE SYSTEM THESE INCLUDE RESCINDING A STATE LAW THAT PROVIDES ANONYMITY FOR THE ACCUSED AND GRANTING COURTS DISCRETION TO TRY 14 AND 15YEAROLDS AS ADULTS IF THEY ARE ON TRIAL FOR MURDER PERHAPS AS IMPORTANT HOWEVER IS MR LUNGREN'S DISTASTE FOR EARLYRELEASE PROGRAMS IN LIEU OF AS HE PUTS IT ADULT TIME FOR AN ADULT CRIME STILL THE PROSPECTS FOR SWIFT REFORM ARE NOT GOOD JUDGING BY THE PRIORITIES OF PRESIDENT CLINTON AND OTHERS IN THE NEW ADMINISTRATION ONE WOULD THINK THAT AMERICANS ARE MORE CONCERNED ABOUT LOSING THEIR JOBS TOMORROW THAN LOSING THEIR CHILDREN TONIGHT CRIME WAS THE GREATEST ISSUE NEVER SEEN IN THE 1992 ELECTIONS THOSE WHO INSIST THAT THE ECONOMY IS THE GREAT OPPRESSOR IN AMERICAN SOCIETY TODAY CAN FIND RELIEF IN THE UNDENIABLE FACT THAT THE ECONOMY GOOD OR BAD IS CYCLICAL CRIME HOWEVER IS RELENTLESS MR DANZINGER IS A PARTNER IN A PUBLIC POLICY RESEARCH FIRM IN SACRAMENTO AND WAS A SPEECHWRITER FOR CALIFORNIA'S FORMER GOV GEORGE DEUKMEJIAN SEE RELATED LETTER LETTERS TO THE EDITOR NO INTERNAL DETERRENTS MEAN EXTERNAL CHAOS WSJ 4/27/93 9304070115 9304270133 930427 USX POSTS PROFIT FOR 1ST QUARTER AFTER 1992 LOSS BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL USX CORP REPORTED A 50 MILLION FIRSTQUARTER PROFIT WITH ITS MARATHON OIL UNIT AND ITS US STEEL GROUP BENEFITING FROM NONOPERATING GAINS FOR THE FIRST QUARTER OF 1992 USX POSTED A NET LOSS OF 166 BILLION INCLUDING A CHARGE OF 167 BILLION FOR ACCOUNTING CHANGES USXMARATHON EARNED 31 MILLION OR 10 CENTS A SHARE IN THE QUARTER COMPARED WITH A LOSS OF 307 MILLION OR 111 A SHARE THE YEAR EARLIER THE YEARBEFORE RESULTS INCLUDED A CHARGE OF 331 MILLION OR 119 A SHARE FOR THE CUMULATIVE EFFECT OF ACCOUNTING CHANGES EXCLUDING NONRECURRING ITEMS MARATHON EARNED FOUR CENTS A SHARE DOWN FROM EIGHT CENTS A SHARE A YEAR AGO SAID ROBIN SHOEMAKER AN ANALYST WITH LEHMAN BROTHERS MARATHON ENCOUNTERED WEAKNESS IN ITS REFINING AND MARKETING BUSINESSES WHICH MIRRORS INDUSTRY TRENDS MR SHOEMAKER SAID IT ALSO SHUT DOWN AN OIL FIELD IN THE NORTH SEA FOR 28 DAYS WHILE IT ADDED NEW EQUIPMENT CUTTING PRODUCTION MARATHON'S SALES IN THE QUARTER WERE 295 BILLION UP FROM 294 BILLION USXUS STEEL GROUP POSTED NET INCOME OF 13 MILLION 18 CENTS A SHARE IN THE QUARTER COMPARED WITH A LOSS OF 136 BILLION OR 2654 A SHARE THE YEAREARLIER FIGURE INCLUDES A CHARGE OF 134 BILLION OR 2613 A SHARE FROM THE CUMULATIVE EFFECT OF ACCOUNTING CHANGES IN 1993'S FIRST QUARTER US STEEL ADDED 28 MILLION TO OPERATING PROFIT BY USING FUNDS FROM A PREVIOUSLY ESTABLISHED INSURANCE RESERVE TO PAY FOR EMPLOYEE INSURANCE BENEFITS THE QUARTER ALSO INCLUDED A PRETAX GAIN OF 38 MILLION FROM ASSET SALES ON AN OPERATING BASIS US STEEL HAD A LOSS OF 20 CENTS A SHARE SAID MICHELLE GALANTER APPLEBAUM AN ANALYST WITH SALOMON BROTHERS STILL MS APPLEBAUM CALLED THE QUARTER A REASONABLE PERFORMANCE US STEEL RAN ITS PLANTS AT ALMOST FULL CAPACITY REFLECTING HIGHER DEMAND BUT PRICE INCREASES WERE LIMITED THE COMPANY SAID SALES CLIMBED TO 121 BILLION FROM 117 BILLION CONTINUED STRONG DEMAND COMBINED WITH EXPECTED HIGHER PRICES COULD PUSH US STEEL INTO THE BLACK ON AN OPERATING BASIS IN THE SECOND QUARTER SAID JOHN JACOBSON AN ANALYST WITH JACOBSON & ASSOCIATES IT'S REALLY THE STRONGEST MOMENTUM WE'VE SEEN IN FIVE YEARS MR JACOBSON SAID OF STEEL DEMAND US STEEL PRODUCERS ALSO ARE BENEFITING FROM A TIGHTER MARKET THE RESULT OF PRELIMINARY FINDINGS OF DUMPING BY FOREIGN STEELMAKERS WHICH HAS LED TO A CURBING OF THEIR EXPORTS 9304270132 930427 WHO'S NEWS UNISYS CHOOSES BELL HEAD OF UNIX GROUP AS TECHNOLOGY CHIEF BLUE BELL PA UNISYS CORP SAID IT NAMED RONALD K BELL TO THE NEWLY CREATED POST OF CHIEF TECHNOLOGY OFFICER RESPONSIBLE FOR DEVELOPING NEW PRODUCTS AND TECHNOLOGY ALLIANCES FOR THE COMPUTER SYSTEMS COMPANY MR BELL 50 YEARS OLD HAD BEEN VICE PRESIDENT AND GENERAL MANAGER OF UNISYS'S UNIX SYSTEMS GROUP RESPONSIBLE FOR DEVELOPMENT AND MARKETING OF THE COMPANY'S COMPUTERS AND SOFTWARE BASED ON THE WIDELY USED UNIX SOFTWARE OPERATING SYSTEM HE WILL CONTINUE TO HEAD THAT GROUP DURING A TRANSITION PERIOD UNISYS SAID UNISYS HAS BEEN CHANGING FROM A SIMPLE MAINFRAME MANUFACTURER TO A SYSTEMS INTEGRATOR PROVIDING SOFTWARE AS WELL AS HARDWARE TO CUSTOMERS WITH LARGE DATAPROCESSING NEEDS MR BELL WORKING FOR UNISYS HAS HELPED MICROCHIP MAKERS SUCH AS INTEL CORP AND MOTOROLA INC DEVELOP NEW MICROPROCESSORS UNISYS FOCUSES ON SERVING THE AIRLINE AND FINANCIAL SERVICES INDUSTRIES THE REGIONAL BELL TELEPHONE COMPANIES AND GOVERNMENT AGENCIES 9304270131 930427 PEPPERAND SALT OF FIVE DAYS HENCE AND ONE CERTAINLY HARD TO BEAT AND I COMPULSIVELY EAT 9304270130 930427 BUSINESS BRIEFS GENICOM CORP WAS NAMED A PREFERRED PROVIDER OF PRINTERS TO DELL COMPUTER CORP SAVOY PICTURES ENTERTAINMENT INC HAS BEEN PROVIDED WITH AN 85 MILLION SECURED RECEIVABLES CREDIT FACILITY BY CHEMICAL BANKING CORP STANDARD COMMERCIAL CORP CANCELED PLANS TO MERGE WITH DIBRELL BROTHERS INC AFTER ITS BOARD CONDUCTED DUE DILIGENCE AND FOUND THE MERGER NOT TO BE IN THE COMPANY'S BEST INTERESTS TUSCARORA INC SOLD ITS 49 SHARE IN WHITE KNIGHT PACKAGING CORP TO PARMALAT AMERICA INC A UNIT OF PARMALAT SPA EASTMAN KODAK CO COMPLETED THE ACQUISITION OF VORTECH DATA INC IN WHICH IT PREVIOUSLY HELD A MINORITY STAKE TERMS WEREN'T DISCLOSED MICHAEL BAKER CORP'S BAKER/MO SERVICES INC UNIT HAS RECEIVED A 28 MILLION CONTRACT TO DESIGN BUILD AND OPERATE TWO OIL AND GAS PROCESSING PLANTS IN ABU DHABI FOR THE ABU DHABI CO FOR ONSHORE OIL OPERATIONS 9304270129 930427 INTERNATIONAL SHAREHOLDERS FAULT EBRD'S SPENDING BUT DON'T CALL FOR OUSTER OF PRESIDENT BY JANET GUYON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON SHAREHOLDERS OF THE EUROPEAN BANK FOR RECONSTRUCTION & DEVELOPMENT REBUKED THE BANK FOR APPEARING TO SPEND EXTRAVAGANTLY BUT STOPPED SHORT OF CALLING FOR THE RESIGNATION OF ITS CREATOR AND PRESIDENT JACQUES ATTALI GOVERNORS WHO REPRESENT THE 54 COUNTRIES THAT OWN THE BANK SAID THEY WOULD CLOSELY WATCH AN INQUIRY INTO THE 555 MILLION 874 MILLION COST OF FITTING OUT THE EBRD'S LUXURIOUS HEADQUARTERS HERE BUT AT THE TWODAY ANNUAL MEETING WHICH BEGAN YESTERDAY THEY SAID THAT DESPITE ITS FAULTS THE BANK'S MISSION TO AID EASTERN EUROPE IS A LEGITIMATE ONE FOLLOWING A CLOSED SESSION OF THE GOVERNORS THEO WAIGEL THE GERMAN FINANCE MINISTER WHO IS CHAIRMAN OF THE EBRD BOARD TOLD REPORTERS THERE WAS NO DISCUSSION ABOUT REORGANIZING TOP MANAGEMENT OF THE BANK NOR OF CREATING A NEW POST OF CHIEF EXECUTIVE SOME BANK DIRECTORS HAVE SUGGESTED THAT MR ATTALI CEDE SOME OF HIS CONTROL OF THE BANK OTHERS WHILE ANGRY ABOUT THE SPENDING CONTINUE TO SUPPORT MR ATTALI BECAUSE OF HIS ENERGY AND IDEAS THE FRENCHMAN HAS CREATED IN JUST TWO YEARS AN INSTITUTION WITH PROMISED CAPITAL OF 10 BILLION ECUS 1233 BILLION OUT OF HIS VISION OF A BIG HAPPY EUROPE THAT UNITES EAST AND WEST THE BANK HAS BEEN UNDER FIRE FROM THE BRITISH PRESS FOR ITS SPENDING HABITS AND THOSE OF MR ATTALI WHO HAS GAINED RENOWN FOR HIS TRIPS BY PRIVATE JET IN ITS TWO YEARS OF OPERATION THE BANK HAS SPENT TWICE AS MUCH ON ITS BUILDING STAFF AND OVERHEAD AS IT HAS DISBURSED TO ITS 25 CLIENT COUNTRIES BANK OFFICIALS HAVE SAID THAT RAPID CHANGE IN THE REGION AMONG OTHER THINGS IS RESPONSIBLE FOR THE RELATIVE SLOWNESS OF DISBURSEMENTS BUILDING SPENDING CAME IN UNDER BUDGET THEY HAVE SAID THE US TEMPORARY GOVERNOR DEPUTY TREASURY SECRETARY ROGER ALTMAN DECLINED TO VOICE DIRECT SUPPORT FOR MR ATTALI BUT HE SAID THE GOVERNORS WILL AWAIT MR ATTALI'S OWN PLAN FOR TIGHTENING SPENDING CONTROLS AND FOR REORGANIZATION WE HOPE THEY WILL BE FORTHCOMING QUICKLY SO THE NECESSARY CONFIDENCE IN THE BANK WILL BE RESTORED HE SAID THE US STILL BACKS THE BANK PARTICULARLY ITS MANDATE TO SUPPORT PRIVATE BUSINESS HE SAID THE US WHICH OWNS 10 OF THE BANK IS ALSO DISCUSSING GIVING IT MORE TIME TO MEET ITS MANDATE THAT AT LEAST 60 OF ITS INVESTMENTS BE IN PRIVATE PROJECTS ROUGHLY SPEAKING MR ALTMAN SAID ABOUT 50 OF THE BANK'S PROJECTS ARE PRIVATE MR ATTALI LAST WEEK CONCEDED THAT THE BANK MADE SOME SPENDING MISTAKES MEANWHILE THE RUSSIAN GOVERNOR COMPLAINED ABOUT THE PALTRY AMOUNT THE BANK HAS SPENT IN RUSSIA AND THE ESTONIAN GOVERNOR GRIPED THAT THE BANK HASN'T PUT ENOUGH PEOPLE IN THAT REGION MR WAIGEL AND MR ATTALI SAID SHAREHOLDERS HAVE ASKED THE BANK TO CREATE A NETWORK OF JOINTVENTURE BANKS IN ITS CLIENT COUNTRIES THAT WOULD FUND SMALL AND MEDIUMSIZED BUSINESS SUCH A NETWORK WOULD AMOUNT TO A DECENTRALIZATION OF THIS ROLE OF THE BANK MR ATTALI SAID THE EBRD ALSO HAS GOTTEN A MANDATE FROM THE SEVEN MAJOR INDUSTRIAL COUNTRIES TO AID SMALL AND MEDIUMSIZED RUSSIAN BUSINESSES BY INVESTING IN THEIR EQUITY THE BANK IS SETTING UP A 300 MILLION FUND FOR RUSSIA WITH HALF THE MONEY COMING FROM THE GROUP OF SEVEN COUNTRIES AND HALF OF IT COMING FROM THE BANK 9304270128 930427 JUDGE FAULTS SEC ON RULES FOR PROXY VOTES OPINION EXPECTED TO ALLOW SHAREHOLDERS TO DEMAND MORE BALLOT PROPOSALS BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AN OPINION BY A FEDERAL JUDGE HERE COULD LEAD TO SHARP LIMITS ON COMPANIES' ABILITY TO KEEP CERTAIN SHAREHOLDER PROPOSALS OFF PROXY BALLOTS IN A VICTORY FOR SHAREHOLDER ACTIVISTS US DISTRICT JUDGE KIMBA WOOD SAID THAT THE SECURITIES AND EXCHANGE COMMISSION HAS BEEN MISAPPLYING ITS OWN RULES TO KEEP ALL EMPLOYMENTRELATED QUESTIONS INCLUDING THOSE INVOLVING SOCIAL ISSUES OFF COMPANIES' PROXY BALLOTS THE 36PAGE OPINION EXPLAINED HER ORDER LAST WEEK REQUIRING WALMART STORES INC TO INCLUDE IN ITS PROXY MATERIALS A PROPOSAL THAT THE RETAILER PREPARE REPORTS ON ITS EQUALEMPLOYMENT AND AFFIRMATIVEACTION PROGRAMS THE SEC IS NOT A PARTY TO THE CASE AND HAS NOT BEEN ORDERED TO CHANGE ITS POLICY BUT SHAREHOLDER ACTIVISTS AND CORPORATE LAWYERS SAY THE OPINION IS HIGHLY SIGNIFICANT BECAUSE JUDGE WOOD IS ALSO OVERSEEING A DIRECT CHALLENGE TO THE SEC POLICY LED BY THE NEW YORK CITY EMPLOYEES' RETIREMENT SYSTEM AND IN THE WALMART CASE SHE HAS PREVIEWED HER THOUGHTS ON THE LEGALITY OF THE POLICY THE SEC ANNOUNCED THAT POLICY WHEN IT DECIDED LAST YEAR THAT CRACKER BARREL OLD COUNTRY STORE INC DIDN'T HAVE TO INCLUDE IN PROXY MATERIALS A PROPOSAL BY THE NEW YORK CITY PENSION FUND THAT WOULD BAR EMPLOYMENT DISCRIMINATION AGAINST HOMOSEXUALS THE SEC SAID THAT ALL EMPLOYMENTRELATED ISSUES WERE DAYTODAY BUSINESS MATTERS THAT WEREN'T PROPER SUBJECTS FOR SHAREHOLDER VOTING CRACKER BARREL ISN'T A PARTY TO THE CASE AS THE PENSION FUND IS SEEKING A CHANGE IN GENERAL SEC POLICY THE SEC'S POLICY ANNOUNCEMENT SEEMED PART OF AN SEC EFFORT TO NARROW THE KINDS OF SOCIAL PROPOSALS THAT QUALIFY FOR PROXY VOTES THE SEC SAID IT HAS BECOME TOO DIFFICULT FOR ITS STAFF TO DRAW DISTINCTIONS BETWEEN WHAT QUALIFIES AS A LEGITIMATE SOCIAL CONCERN AND WHAT DOESN'T BUT IN HER RULING YESTERDAY JUDGE WOOD SAID THE SEC HAS BEEN MISINTERPRETING ITS RESPONSIBILITIES UNDER ITS OWN RULES GOVERNING SOCIAL PROXY PROPOSALS IN BOTH THE WALMART AND THE CRACKER BARREL CASES THE SEC ISSUED NOACTION LETTERS TO THE COMPANIES SAYING THAT THE AGENCY WOULDN'T DO ANYTHING IF THE EMPLOYEERELATED PROPOSALS WERE KEPT OFF THE BALLOT THE SEC'S DETERMINATION OF WHETHER A COMPANY MAY EXCLUDE A PROPOSAL SHOULD NOT DEPEND ON WHETHER THE PROPOSAL COULD BE CHARACTERIZED AS INVOLVING SOME DAYTODAY BUSINESS MATTER RATHER THE PROPOSAL MAY BE EXCLUDED ONLY AFTER THE PROPOSAL IS ALSO FOUND TO RAISE NO SUBSTANTIAL POLICY CONSIDERATION JUDGE WOOD WROTE ALAN DYE AN ATTORNEY AT HOGAN & HARTSON IN WASHINGTON WHICH REPRESENTED WALMART SAID THE COMPANY IS STILL REVIEWING JUDGE WOOD'S DECISION AND CONSIDERING AN APPEAL AN SEC SPOKESMAN SAID THE AGENCY WOULDN'T COMMENT BECAUSE IT IS IN LITIGATION OVER THE ISSUE SHAREHOLDER ACTIVISTS SAID THE RULING WILL LIKELY PUT THE BRAKES ON ANY EFFORT BY THE SEC TO LIMIT SOCIALLY DRIVEN PROXY STATEMENTS ANY FEDERAL JUDGE HAS THE POWER TO ORDER THE AGENCY TO REFRAIN FROM ACTING ILLEGALLY IT MEANS A LOT OF RESOLUTIONS ARE BACK ON THE BALLOT SAID CORNISH F HITCHCOCK AN ATTORNEY AT THE PUBLIC CITIZEN LITIGATION GROUP IN WASHINGTON THE ORGANIZATION REPRESENTED THE SHAREHOLDER GROUPS SUING WALMART A SPOKESMAN FOR THE NEW YORK CITY PENSION FUND SAID THE GROUP WILL RESUBMIT TO CRACKER BARREL ITS PROPOSAL BARRING DISCRIMINATION AGAINST GAY PEOPLE BUT CAROLYN MATHIASEN THE DIRECTOR OF THE SOCIAL ISSUES SERVICE AT THE INVESTOR RESPONSIBILITY RESEARCH CENTER IN WASHINGTON SAID THAT EVEN BEFORE JUDGE WOOD'S RULING THE SEC'S CRACKER BARREL POLICY HAS NOT HAD THE WIDE EFFECT THAT HAD BEEN EXPECTED SHE SAID THAT SHAREHOLDER ACTIVISTS TYPICALLY MAKE ABOUT A HALFDOZEN EMPLOYMENT RELATED PROPOSALS ANNUALLY AND THAT SOME OF THOSE MADE THIS YEAR ARE GOING ON PROXY BALLOTS 9304270127 930427 JUSTICES RULE STATES CAN'T BAR CPAS FROM SOLICITING NEW CLIENTS IN PERSON BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT SAID STATES MAY NOT PROHIBIT ACCOUNTANTS FROM SOLICITING POTENTIAL NEW CLIENTS IN PERSON THE 81 RULING SAID THAT SUCH A BAN IN FLORIDA WAS INVALID BECAUSE IT VIOLATED THE CONSTITUTIONAL GUARANTEE OF FREE SPEECH ONLY THREE OTHER STATES GEORGIA LOUISIANA AND TEXAS BAR INPERSON SOLICITATION BY CERTIFIED PUBLIC ACCOUNTANTS BUT PROFESSIONAL ORGANIZATIONS IN 12 OTHER STATES IMPOSE SUCH BANS THESE RULES NOW COULD BE CHALLENGED ON CONSTITUTIONAL GROUNDS IF THEY ARE INTERPRETED AS REFLECTING OFFICIAL STATE ACTION THE SUPREME COURT HAS RULED IN THE PAST THAT COMMERCIAL SPEECH SUCH AS ADVERTISING DESERVES SUBSTANTIAL PROTECTION UNDER THE FIRST AMENDMENT'S GUARANTEE OF FREE SPEECH BUT THE HIGH COURT HAS SAID THAT GOVERNMENT RESTRICTIONS ON COMMERCIAL SPEECH ARE ALLOWED IF THEY ARE NARROW IN SCOPE AND FURTHER AN IMPORTANT STATE INTEREST IN YESTERDAY'S RULING THE HIGH COURT REJECTED FLORIDA'S ARGUMENT THAT ITS BAN ON INPERSON SOLICITATION BY LICENSED ACCOUNTANTS WAS NECESSARY TO PROTECT THE PROFESSION'S INTEGRITY AND OBJECTIVITY PARTICULARLY WHEN AUDITS AND OPINIONS ON CLIENTS' FINANCES ARE INVOLVED FLORIDA HAD CONTENDED THAT INPERSON SOLICITATION ENCOURAGES SOME ACCOUNTANTS TO BE TOO ACCOMMODATING OR TOO MANIPULATIVE THE STATE SAYS THE RESULT IS TO UNDERMINE PUBLIC FAITH IN THE PROFESSION AS A WHOLE WRITING FOR THE MAJORITY JUSTICE ANTHONY KENNEDY SAID THE STATE'S GOALS WERE LEGITIMATE BUT THAT IT FAILED TO PROVIDE ANY STATISTICAL OR ANECDOTAL EVIDENCE THAT A BAN ON CPA SOLICITATION WOULD DIRECTLY SERVE THOSE GOALS THE ACCOUNTING PROFESSION ITSELF HASN'T PUT FORWARD ANY SUCH EVIDENCE JUSTICE KENNEDY NOTED CONTRARY TO FLORIDA'S CONTENTION AN EXECUTIVE SEEKING A FAVORABLE BUT UNJUSTIFIED AUDIT WOULD BE LESS LIKELY TO TURN TO A STRANGER WHO HAS SOLICITED HIM THAN TO PUT PRESSURE ON A FAMILIAR CPA JUSTICE KENNEDY WROTE THE MAJORITY DISTINGUISHED ITS DECISION YESTERDAY FROM A 1978 HIGH COURT RULING THAT UPHELD A STATE BAN ON INPERSON SOLICITATION BY LAWYERS CPAS PITCHING THEIR SERVICES DON'T POSE THE SAME DANGERS AS LAWYERS JUSTICE KENNEDY WROTE FOR ONE THING LAWYERS ARE PROFESSIONALS TRAINED IN THE ART OF PERSUASION WHILE ACCOUNTANT TRAINING STRESSES INDEPENDENCE AND OBJECTIVITY NOT ADVOCACY HE REASONED THE 1978 DECISION WHICH INVOLVED A YOUNG ACCIDENT VICTIM WHO HAD BEEN APPROACHED BY A PERSONALINJURY LAWYER SHOULDN'T BE APPLIED BEYOND THE SPECIFIC CIRCUMSTANCES OF THAT CASE THE MAJORITY CONCLUDED THE TYPICAL CPA CLIENT A BUSINESSPERSON IS LESS SUSCEPTIBLE TO MANIPULATION JUSTICE KENNEDY ASSERTED IN OTHER ACTIONS YESTERDAY THE SUPREME COURT AGREED TO DECIDE WHETHER PROSECUTORS IN ORDER TO CONVICT PEOPLE CHARGED WITH EVADING FEDERAL CURRENCYREPORTING LAWS MUST PROVE THAT DEFENDANTS KNEW THEIR ACTIONS WERE ILLEGAL THE CASE CONCERNS A 1986 STATUTE MEANT TO DETER MONEY LAUNDERING THE PRACTICE OF ENGAGING IN TRANSACTIONS DESIGNED TO DISGUISE ILLICIT PROFITS THE STATUTE MADE IT ILLEGAL TO STRUCTURE CASH TRANSACTIONS TO AVOID THE FEDERAL REQUIREMENT THAT FINANCIAL INSTITUTIONS REPORT TRANSACTIONS INVOLVING MORE THAN 10000 THE JUSTICES AGREED TO HEAR AN APPEAL BY AN OREGON COUPLE WHO TRIED TO PAY OFF A 160000 GAMBLING DEBT IN INSTALLMENTS OF LESS THAN 10000 EACH RATZLAF VS US LET STAND A LOWERCOURT RULING THAT INVALIDATED A FEDERAL ENVIRONMENTAL RULE FAVORED BY INDUSTRY THE RULE WAS DESIGNED TO GOVERN THE DISPOSAL OF WATER CONTAINING HAZARDOUS WASTE GENERATED BY THOUSANDS OF PLANTS ACROSS THE COUNTRY IT EFFECTIVELY ALLOWED INDUSTRY TO CONTINUE EXISTING PRACTICES FOR DILUTING HAZARDOUS WASTE AND DISPOSING OF THE RESULTING WASTEWATER 9304270126 930427 WHO'S NEWS AT&T AWARDS CONSUMER POST TO CARL LEDBETTER BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO NAMED CARL S LEDBETTER JR A TOP EXECUTIVE AT SUN MICROSYSTEMS INC AS PRESIDENT OF ITS CONSUMER PRODUCTS UNIT MR LEDBETTER 43 YEARS OLD COMES TO THE CONSUMER PRODUCTS DIVISION WHICH HAS ESTIMATED ANNUAL REVENUE OF ABOUT 2 BILLION WITH RELATIVELY LITTLE MARKETING OR RETAILING EXPERIENCE BUT HE DOES BRING EXTENSIVE INVOLVEMENT IN MATHEMATICS AND ENGINEERING TO THE COMPANY THIS IS VERY SYMBOLIC OF THE DIRECTION THAT AT&T IS GOING SAID JACK GRUBMAN AN ANALYST WITH PAINEWEBBER INC THE CONSUMER PRODUCTS DIVISION IS FAST BECOMING A DISTRIBUTION ARM FOR AT&T'S MULTIMEDIA PRODUCTS PERSONAL COMMUNICATORS AND OTHER HIGHTECH PRODUCTS IT IS PARTICULARLY TELLING THAT THEY WOULD HIRE SOMEONE WITH SUCH AN EXTENSIVE TECHNOLOGY BACKGROUND RATHER THAN SOMEBODY WITH THE TRADITIONAL MARKETING BACKGROUND MR LEDBETTER SUCCEEDS KENNETH M BERTACCINI 49 WHO HAS BEEN WORKING AS SENIOR VICE PRESIDENT AND CHIEF QUALITY CONTROL OFFICER AT AT&T SINCE FEB 1 THE COMPANY SAID JOHN HANLEY 47 WHO HAS SERVED AS ACTING PRESIDENT OF THE CONSUMER PRODUCTS DIVISION SINCE MR BERTACCINI'S PROMOTION WILL REMAIN WITH THE DIVISION MR HANLEY HAS A GREAT DEAL OF EXPERIENCE IN MARKETING AND THAT SHOULD PROVIDE A NICE COMPLEMENT TO MR LEDBETTER'S MORE TECHNICAL BACKGROUND A SPOKESWOMAN SAID AT SUN MICROSYSTEMS MR LEDBETTER HAS BEEN CORPORATE VICE PRESIDENT AND GENERAL MANAGER OF THE COMPANY'S SUNSELECT DIVISION WHICH MAKES AND MARKETS NETWORKING PRODUCTS FOR UNIX SYSTEMS AND PERSONAL COMPUTERS BEFORE WORKING AT SUN MR LEDBETTER RAN HIS OWN CONSULTING COMPANY AND AT ONE TIME WAS AN ASSISTANT PROFESSOR OF MATHEMATICS AT WELLESLEY COLLEGE MR LEDBETTER'S BACKGROUND IS APPLICABLE TO DESKTOP AND HANDHELD COMMUNICATIONS DEVICES SAID ROGER LANCTOT RESEARCH DIRECTOR AT PERSONAL TECHNOLOGY RESEARCH INC A WALTHAM MASS COMPANY THAT FOLLOWS THE CONSUMER PHONE INDUSTRY THAT'S WHERE THE UNIT IS CLEARLY LOOKING TO INCREASE SALES PARTICULARLY AS AT&T BECOMES MORE FOCUSED ON INTEGRATING TELECOMMUNICATIONS AND COMPUTING FUNCTIONS IN MOBILE DEVICES AT&T'S CONSUMER PRODUCTS UNIT HAS ABOUT 14000 EMPLOYEES WORLDWIDE AND ABOUT 400 RETAIL PHONE CENTER OUTLETS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE AT&T SHARES CLOSED AT 56 DOWN 125 CENTS 9304270125 930427 WHO'S NEWS AFTER STAKE SALE DWG CORP NAMES NEW MANAGEMENT BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL DWG CORP APPOINTED NEW MANAGEMENT FOLLOWING LAST WEEK'S SALE BY FINANCIER VICTOR POSNER OF HIS NEARLY 50 STAKE IN THE HOLDING COMPANY NELSON PELTZ 50 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER AND CHAIRMAN OF THE MIAMI COMPANY SUCCEEDING MR POSNER 74 MR PELTZ AND PETER W MAY RUN THE LIMITED PARTNERSHIP DWG ACQUISITION GROUP LP THAT ACQUIRED THE COMPANY MR MAY 50 SUCCEEDS MR POSNER AS PRESIDENT AND FILLS THE NEW POST OF CHIEF OPERATING OFFICER MR PELTZ AND MR MAY WERE NAMED DIRECTORS THE COMPANY ALSO ANNOUNCED PLANS TO CHANGE ITS NAME TO TRIARC COS EIGHT DIRECTORS WERE NAMED TO SUCCEED EIGHT WHO HAVE RESIGNED IN ADDITION TO MR PELTZ AND MR MAY BOARD APPOINTEES ARE IRVING MITCHELL FELT 82 WILLIAM PALLOT 80 THOMAS PRENDERGAST 59 MARTIN ROSEN 67 STEVEN WEISGLASS 63 AND LEON KALVARIA 34 MR KALVARIA WAS NAMED VICE CHAIRMAN OF THE COMPANY THE NEW DIRECTORS SUCCEED PATRICK O'NEILL 53 WILLIE C ROBINSON 58 TM THOMPSON 75 MR POSNER AND HIS SON STEVEN POSNER 50 BROTHER BERNARD POSNER 76 NEPHEW MARTIN POSNER 45 AND BROTHERINLAW MELVIN COLVIN 72 MR PELTZ AND MR MAY ALSO WERE APPOINTED TO RUN TWO COMPANIES CONTROLLED BY DWG SOUTHEASTERN PUBLIC SERVICE CO A MUNICIPAL SERVICES PROVIDER AND WILSON BROTHERS A MAKER OF CERAMICS AND INDUSTRIAL CRANES MR PELTZ WILL SERVE AS CHIEF EXECUTIVE OFFICER AND CHAIRMAN SUCCEEDING MR POSNER MR MAY WILL SERVE AS PRESIDENT SUCCEEDING MR POSNER AND CHIEF OPERATING OFFICER A NEW POST H DOUGLAS KINGSMORE 60 SUCCEEDS MR POSNER AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE GRANITEVILLE CO UNIT WHICH MAKES TEXTILES THE COMPANY SAID MR KINGSMORE WHO REMAINS A DWG DIRECTOR WAS FORMERLY THE UNIT'S EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER THE COMPANY NAMED OUTSIDE EXECUTIVES TO RUN ITS REMAINING UNITS DONALD L PIERCE 46 WAS APPOINTED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ARBY'S INC HE WAS PRESIDENT OF HOT 'N NOW HAMBURGER RESTAURANTS OWNED BY PEPSICO INC JOHN C CARSON 47 SUCCEEDS MR POSNER AS PRESIDENT AND CHIEF EXECUTIVE OF THE ROYAL CROWN COLA CO UNIT HE PREVIOUSLY WAS PRESIDENT OF CADBURY BEVERAGES NORTH AMERICA A UNIT OF CADBURY SCHWEPPES PLC RONALD PALIUGHI 49 SUCCEEDS MR POSNER AS PRESIDENT AND CHIEF EXECUTIVE OF THE NATIONAL PROPANE CORP UNIT HE HAD BEEN SENIOR VICE PRESIDENT OF AP PROPANE A JOINT VENTURE OF PRUDENTIAL INSURANCE AND AMERIGAS PROPANE MR POSNER AND HIS AFFILIATES AS PREVIOUSLY AGREED SOLD HALF THEIR DWG SHARES TO THE PARTNERSHIP RUN BY MR PELTZ AND MR MAY FOR 718 MILLION AND EXCHANGED THEIR REMAINING COMMON SHARES FOR PREFERRED STOCK 9304270124 930427 TECHNOLOGY & HEALTH GLAUCOMA RESEARCHERS TEST OLD DRUG AS A POSSIBLE ONCEAYEAR TREATMENT BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES RESEARCHERS ARE TESTING AN OLD DRUG AS A POSSIBLE ONCEAYEAR TREATMENT FOR GLAUCOMA A COMMON CAUSE OF BLINDNESS MEANWHILE ANOTHER TEAM OF SCIENTISTS SAID THEY FOUND A GENE THAT CAUSES GLAUCOMA POSSIBLY THE FIRST OF SEVERAL GENES UNDERLYING THE EYE DISEASE GLAUCOMA IS A DISORDER THAT GRADUALLY DESTROYS PERIPHERAL VISION EVENTUALLY SHRINKING A PATIENT'S FIELD OF VIEW TO A SMALL CENTRAL SPOT IT INVOLVES DAMAGE TO THE OPTIC NERVE AND IS CHARACTERIZED BY A BUILDUP OF FLUID PRESSURE IN A TINY SPACE UNDERNEATH THE CORNEA ESTIMATES OF THE PREVALENCE OF GLAUCOMA IN THE US RANGE FROM 15 MILLION TO 15 MILLION PERSONS AN EFFECTIVE ONCEAYEAR TREATMENT FOR GLAUCOMA WOULD BE A MAJOR BOON FOR PATIENTS AT PRESENT MOST GLAUCOMA PATIENTS ADMINISTER EYE DROPS SEVERAL TIMES A DAY TO KEEP FLUID PRESSURE FROM BUILDING UP IF DRUGS DON'T RELIEVE THE PRESSURE SURGERY MAY BE THE NEXT STEP A MULTICENTER CLINICAL TRIAL IS UNDER WAY TO SEE IF SINGLE INJECTIONS IN THE EYE OF AN OLD DRUG ETHACRYNIC ACID CAN KEEP THE FLUID PRESSURE DOWN FOR MONTHS AT A TIME ACCORDING TO DAVID L EPSTEIN CHAIRMAN OF OPHTHALMOLOGY AT THE DUKE UNIVERSITY MEDICAL CENTER IN DURHAM NC DR EPSTEIN SPOKE AT A SEMINAR HELD HERE BY RESEARCH TO PREVENT BLINDNESS A NONPROFIT AGENCY THAT SUPPORTS EYE RESEARCH ETHACRYNIC ACID WAS ORIGINALLY DEVELOPED ABOUT 30 YEARS AGO BY MERCK & CO AS A DIURETIC TO RID THE BODY OF EXCESS WATER THE DRUG SOLD UNDER THE BRAND NAME EDECRIN HAS SINCE BEEN LARGELY SUPPLANTED BY OTHER DIURETICS NOTED DR EPSTEIN DR EPSTEIN SAID HE BEGAN INVESTIGATING THE POSSIBLE USE OF ETHACRYNIC ACID IN GLAUCOMA WHEN HE WAS AT THE MASSACHUSETTS EYE AND EAR INFIRMARY IN BOSTON HIS PATENT ON THE USE OF THE DRUG IN GLAUCOMA IS ASSIGNED TO THE INFIRMARY WHICH IN TURN HAS LICENSED IT TO TELOR PHARMACEUTICAL CO A WOBURN MASS BIOTECHNOLOGY COMPANY THE CLINICAL TRIAL NOW UNDER WAY IS BEING DONE UNDER THE AEGIS OF TELOR DR EPSTEIN SAID HE WILL RECEIVE A SHARE OF THE INFIRMARY'S ROYALTIES BUT DOESN'T HAVE ANY FINANCIAL INTEREST IN TELOR DR EPSTEIN SAID ETHACRYNIC ACID RELIEVES THE FLUID PRESSURE ON THE EYE IN A DIFFERENT WAY THAN EXISTING GLAUCOMA DRUGS THE DRUGS CURRENTLY USED ARE DESIGNED TO RESTRICT THE AMOUNT OF FLUID FLOWING INTO THE SPACE UNDERNEATH THE CORNEA THEREBY LIMITING THE PRESSURE BUILDUP THE BUILDUP HOWEVER RESULTS FROM A BLOCKAGE OF TINY CANALS THAT DRAIN THE EYE ETHACRYNIC ACID DR EPSTEIN SAID WORKS BY MORE OR LESS UNPLUGGING THE BLOCKED DRAINAGE CANALS OR RATHER IT MAKES THE MATTER THAT BLOCKS THE CANALS MORE PERMEABLE OR LEAKY TWO SMALL TRIALS INVOLVING A TOTAL OF 25 PATIENTS HAVE SHOWN THE DRUG TO BE SAFE WHEN INJECTED INTO THE EYE HE SAID THE PATIENTS DIDN'T HAVE GLAUCOMA BUT ALLOWED RESEARCHERS TO INJECT THE DRUG DURING SURGERY FOR CATARACTS IN THE CURRENT TRIAL DESIGNED TO TEST THE EFFECTIVENESS OF THE DRUG GLAUCOMA PATIENTS WHO ALSO HAVE CATARACTS ARE ALLOWING RESEARCHERS HERE AND ABROAD TO INJECT THE DRUG DURING CATARACT SURGERY FOR COMPARISON PURPOSES SOME OF THE PATIENTS ARE RECEIVING INJECTIONS OF AN INERT FLUID HE EXPLAINED DR EPSTEIN SAID ONCE THE ABNORMAL MATTER BLOCKING THE DRAINAGE CANALS IS FLUSHED OUT IT MAY TAKE MONTHS OR PERHAPS A YEAR FOR THE CANALS TO BECOME PLUGGED UP AGAIN HOWEVER HE CAUTIONED IT ISN'T YET KNOWN WHETHER THE EFFECTS OF THE DRUG WILL LAST FOR MONTHS OR JUST FOR DAYS MEANTIME THE DISCOVERY OF A GENE LINKED TO GLAUCOMA MAY BE THE FIRST MAJOR BREAK IN SOLVING THE MYSTERY OF THE EYE DISEASE AND OPENING THE WAY TO NEW DIAGNOSTIC TESTS AND TREATMENTS THE GENE DISCOVERY WAS REPORTED BY OPHTHALMOLOGIST EDWIN M STONE OF THE UNIVERSITY OF IOWA IN IOWA CITY UNTIL NOW THE CAUSE OR CAUSES OF GLAUCOMA HAVE BEEN UNKNOWN DR STONE NOTED THAT IT HAS BEEN VARIOUSLY ESTIMATED THAT 4 TO 17 OF CASES ARE THOUGHT TO BE AN INHERITABLE FORM OF GLAUCOMA HOWEVER HE ADDED MOST GLAUCOMA DOESN'T BECOME APPARENT UNTIL THE PATIENTS ARE IN THEIR 50S AND 60S USUALLY AFTER THEIR PARENTS ARE DEAD AND BEFORE THEIR CHILDREN ARE OLD ENOUGH TO DEVELOP THE DISORDER HENCE HE SAID THE GENETIC BASIS OF MANY CASES OF GLAUCOMA MAY NOT BE APPARENT DR STONE CREDITED THE DISCOVERY OF THE FIRST GLAUCOMA GENE TO A YOUNG MAN WHO WALKED INTO THE UNIVERSITY OF IOWA CLINIC FIVE YEARS AGO WITH A GENEALOGY OF HIS FAMILY FOR FIVE GENERATIONS DRAWN OUT ON A YELLOW LEGAL PAD THE FAMILY HAS BEEN HAUNTED BY AN UNUSUAL TYPE OF GLAUCOMA IN WHICH THE EYE DISORDER DEVELOPS AT AN EARLY AGE USUALLY BY THE EARLY 20S THE IOWA RESEARCHERS WERE ABLE TO RUN GENETIC TESTS ON BLOOD CELLS FROM 37 MEMBERS OF THE FAMILY INCLUDING 21 WHO HAD GLAUCOMA THE RESULTS WHICH WILL BE PUBLISHED IN A SCIENTIFIC JOURNAL NEXT WEEK SHOW THAT A UNIQUE STRETCH OF GENETIC MATERIAL A MARKER WAS PRESENT IN ALL THOSE FAMILY MEMBERS WITH GLAUCOMA BUT NOT IN THOSE WITHOUT THE EYE DISORDER DR STONE SAID HE AND HIS COLLEAGUES ARE NOW WORKING HARD TO ISOLATE AND PLUCK OUT THE DEFECTIVE GENE ONCE IT IS EXAMINED THE RESEARCHERS SHOULD BE ABLE TO DISCOVER WHAT PROTEIN THE GENE MAKES AND HOW THIS PRESUMABLY DEFECTIVE PROTEIN WREAKS DAMAGE ON THE EYE UNTIL NOW HE EXPLAINED RESEARCHERS HAVE BEEN BAFFLED AS TO WHY THE TINY DRAINAGE CANALS PLUG UP HOW THE OPTIC NERVE IS DAMAGED AND WHAT UNDERLIES THE OTHER KINDS OF DAMAGE SEEN IN THE EYES OF GLAUCOMA PATIENTS FINDING A GENETIC MARKER FOR A DEFECTIVE GENE CAN BE VALUABLE EVEN BEFORE THE CULPRIT GENE IS ISOLATED DR STONE EXPLAINED RESEARCHERS CAN TEST FOR THE GENETIC MARKER AND DISCOVER WHICH CHILDREN IN A FAMILY HAVE INHERITED THE GLAUCOMA GENE AND WHICH HAVEN'T 9304270123 930427 ZILOG INC TO EXPAND CHIP PLANT CAMPBELL CALIF ZILOG INC A SEMICONDUCTOR MAKER SAID IT WOULD MORE THAN DOUBLE THE PRODUCTION CAPACITY AT ITS NAMPA IDAHO CHIP PLANT THROUGH AN EXPANSION THAT IS TO COST MORE THAN 200 MILLION OFFICIALS AT ZILOG SAID SALES HAVE TRIPLED OVER THE PAST EIGHT YEARS AND THAT THE EXPANSION WOULD ENABLE ZILOG TO MEET PRODUCTION NEEDS THROUGH THE REST OF THE DECADE THE COMPANY ALSO HAS PLANTS IN THE PHILIPPINES AND INDONESIA 9304270122 930427 MARKETING & MEDIA NOTED ELECTRONIC PUBLISHING FRANKLIN ELECTRONIC PUBLISHERS INC MOUNT HOLLY NJ WILL PUBLISH A DIGITAL COMPUTERCARD VERSION OF WALLACH'S INTERPRETATION OF DIAGNOSTIC TEXTS A MEDICAL TEXT BY LITTLE BROWN & CO TERMS WEREN'T DISCLOSED FRANKLIN PREVIOUSLY REACHED A LICENSE AGREEMENT WITH LITTLE BROWN FOR ANOTHER TEXT THE WASHINGTON UNIVERSITY MANUAL OF MEDICAL THERAPEUTICS 9304270121 930427 PROXYFIRM WOES SNAG SHAREHOLDER VOTES BY RANDY MYERS SPECIAL TO THE WALL STREET JOURNAL PENSION OFFICIALS AT CONNECTICUT'S TREASURY DEPARTMENT WERE STUNNED RECENTLY TO LEARN THAT THEIR VOTES ON A CONTROVERSIAL PROXY MEASURE AT PARAMOUNT COMMUNICATIONS INC LAST MONTH WENT UNCOUNTED EVEN THOUGH THE STATE PENSION FUND'S 200000 VOTES HAD BEEN DELIVERED THREE DAYS BEFORE THE COMPANY'S ANNUAL MEETING AND LAST WEEK EXECUTIVES AT WASHINGTON MUTUAL SAVINGS ASSOCIATION IN SEATTLE HAD TO ADJOURN THE COMPANY'S ANNUAL MEETING UNTIL THIS WEEK AFTER DETERMINING THAT UNCOUNTED PROXY VOTES HAD RESULTED IN ONLY ABOUT 53 OF ITS SHARES OUTSTANDING BEING TABULATED AS HAVING VOTED ABOUT 30 PERCENTAGE POINTS LESS THAN NORMAL ACROSS CORPORATE AMERICA THE USUAL SCRAMBLE THAT CHARACTERIZES PROXY SEASON FOR PUBLICLY TRADED COMPANIES AND THEIR INSTITUTIONAL SHAREHOLDERS HAS BEEN EXACERBATED BY PROBLEMS AT THE PROXY SERVICES UNIT OF AUTOMATIC DATA PROCESSING INC ADP PROXY SERVICES DISTRIBUTES PROXIES ANNUAL REPORTS AND OTHER COMMUNICATIONS TO BENEFICIAL OWNERS OF SECURITIES THAT ARE HELD IN STREET NAME BY FINANCIAL INSTITUTIONS THAT IS HELD FOR CUSTOMERS IN THE NAME OF A BROKERAGE FIRM IN A JOINT VENTURE WITH FIDELITY INVESTMENTS THE GIANT BOSTON MUTUAL FUND OPERATOR THE COMPANY ALSO OFFERS A SERVICE CALLED PROXY EDGE THAT IS SUPPOSED TO DELIVER PROXY MATERIALS AND TRANSMIT SHAREHOLDER VOTES ELECTRONICALLY LAST YEAR THE COMPANY BOUGHT ITS ONLY SIGNIFICANT COMPETITOR IN THE PROXYDISTRIBUTION BUSINESS INDEPENDENT ELECTION CORP OF AMERICA ART WEINBACH AN EXECUTIVE VICE PRESIDENT FOR AUTOMATIC DATA PROCESSING SAID THE ACTUAL MERGER OF THE TWO PROXY UNITS IN DECEMBER CREATED SOME EARLY PROBLEMS WITH LIMITED DELAYS IN MAILINGS AND ISOLATED INCIDENTS OF INCORRECT ITEMS BEING INCLUDED IN ENVELOPES THESE PROBLEMS HAVE SINCE BEEN CORRECTED HE SAID OUR CURRENT DISTRIBUTION LEVELS ARE NOW EQUAL TO OR BETTER THAN THEY HAVE BEEN IN THE PAST AT WASHINGTON MUTUAL CORPORATE SECRETARY WILLIAM LYNCH STRESSES THAT ADP HAS BEEN DILIGENT IN TRYING TO CORRECT ITS PROBLEMS NUMEROUS PARTICIPANTS IN THE PROXY PROCESS INCLUDING INDEPENDENT PROXY SOLICITORS AND CORPORATE ISSUERS MAINTAIN THAT THE GROWING TENDENCY OF INSTITUTIONAL SHAREHOLDERS TO WITHHOLD THEIR VOTES UNTIL JUST BEFORE AN ANNUAL MEETING HAS MAGNIFIED THE PROBLEM OF LASTMINUTE VOTECOUNTING STILL INTERVIEWS WITH BIG INSTITUTIONAL SHAREHOLDERS SUGGEST THAT ADP'S TROUBLES AREN'T SOLVED WE HAVE HAD THE SAME PROBLEMS THAT EVERYONE ELSE IS HAVING WE BELONG TO PROXY EDGE SAYS JOSE ARAU PRINCIPAL INVESTMENT OFFICER FOR THE 74 BILLION CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM OR CALPERS WE HAVE HAD PROBLEMS IN THE LAST MONTH IN RECEIVING PROXY MATERIALS AND ALSO IN SENDING OUR VOTES ELECTRONICALLY CALPERS HAS TOLD ADP THAT IT IS WITHHOLDING PAYMENT FOR SOME OF ADP'S SERVICES UNTIL THE PROBLEMS ARE CORRECTED MR ARAU SAID CALPERS IS BEING CHARGED 15000 A YEAR FOR PROXY EDGE WHICH DISTRIBUTES PROXIES TO CUSTOMERS ELECTRONICALLY AND ALLOWS THEM TO VOTE THEIR SHARES ELECTRONICALLY BECAUSE OF PROBLEMS WITH THE SYSTEM CALPERS HAS BEEN FAXING ITS VOTES TO THE CORPORATE CUSTODIAN RESPONSIBLE FOR MONITORING PROXIES AND HAVING THE CUSTODIAN FORWARD THE VOTE TO ADP WHICH THEN RELAYS IT TO VOTE TABULATORS MR DALY SAYS ADP UNDERESTIMATED THE RESOURCES REQUIRED TO SUPPORT PROXY EDGE AFTER ACQUIRING ITS COMPETITOR BUT SAYS THAT WITHIN THE PAST TWO WEEKS THE COMPANY HAS UPGRADED THE SYSTEM AND IS WORKING WITH ITS CUSTOMERS TO RESTORE THEIR CONFIDENCE HE ADDED THAT FIDELITY HAS DEVELOPED A NEW AND BETTER VERSION OF THE SOFTWARE THAT WILL BE INSTALLED AFTER THE CURRENT PROXY SEASON IS OVER PROXY EDGE OFFICIALS COULDN'T BE REACHED FOR COMMENT CALPERS WAS ONE OF THE INSTITUTIONS THAT SAW ITS VOTES GO UNCOUNTED AT THE ANNUAL MEETING OF PARAMOUNT COMMUNICATIONS IN THAT CONTEST A NUMBER OF BIG HOLDERS LED BY WISCONSIN'S PUBLIC PENSION FUND SOUGHT TO WITHHOLD THEIR VOTES FOR DIRECTORS ON THE COMPENSATION COMMITTEE TO PROTEST THE COMPANY'S LAGGING STOCK PERFORMANCE AND HIGH EXECUTIVE COMPENSATION THE COUNCIL OF INSTITUTIONAL SHAREHOLDERS A GROUP THAT REPRESENTS MANY OF THE NATION'S BIGGEST PUBLIC PENSION FUNDS HAS FORMED A COMMITTEE TO INVESTIGATE THE PROXY SITUATION WITH ADP AND HAS PASSED ITS CONCERNS ALONG TO REP EDWARD J MARKEY D MASS CHAIRMAN OF THE HOUSE SUBCOMMITTEE ON TELECOMMUNICATIONS AND FINANCE THE PARAMOUNT SITUATION IS LIKELY TO BE THE CASE STUDY THAT THE SUBCOMMITTEE WILL LOOK AT SAID A SPOKESMAN FOR REP MARKEY WHO IS PLANNING TO DRAFT CORPORATE GOVERNANCE LEGISLATION THIS YEAR THAT WOULD STRENGTHEN THE ROLE OF INDEPENDENT DIRECTORS 9304270120 930427 WHO'S NEWS JOSEPHTHAL LYON & ROSS INC JOSEPHTHAL LYON & ROSS INC NEW YORK THIS SECURITIES BROKERAGE AND INVESTMENT CONCERN PROMOTED DENNIS B MCALPINE 52 YEARS OLD AND LAWRENCE R RICE 47 TO BE CODIRECTORS OF RESEARCH MR MCALPINE WILL OVERSEE THE COMPANY'S RESEARCH AND MR RICE WILL SERVE AS BUSINESS MANAGER IN THE RESEARCH DEPARTMENT THE TWO SUCCEED PETER LABE 64 PREVIOUSLY DIRECTOR OF RESEARCH AND JEAN ORR 47 ASSISTANT DIRECTOR OF THE DEPARTMENT WHO BOTH RESIGNED A SPOKESMAN SAID MR MCALPINE PREVIOUSLY WAS VICE PRESIDENT MEDIA/ENTERTAINMENT AT NOMURA RESEARCH INSTITUTE AMERICA A UNIT OF NOMURA SECURITIES CO OF TOKYO MR RICE HAD BEEN MANAGING DIRECTOR LEISURE COMMUNICATIONS AND SPECIAL SITUATIONS STOCKS AT JOSEPHTHAL IN ADDITION TO NEW DUTIES MR RICE AND MR MCALPINE WILL CONTINUE FOLLOWING STOCKS THEY PREVIOUSLY MONITORED 9304270119 930427 INTERNATIONAL FRENCH FARMERS BEGIN TO DOUBT PROMISES BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL VERSAILLES FRANCE THE FRENCH FARM LOBBY ONE OF THE BIGGEST AND MOST INFLUENTIAL OPPONENTS OF A NEW WORLDTRADE ACCORD IS IN A STATE OF HIGH ANXIETY THE FEDERATION NATIONALE DES SYNDICATS D'EXPLOITANTS AGRICOLES HAS LONG PLAYED AN IMPORTANT ROLE IN FORMULATING FRENCH POLICY ON TRADE AND AGRICULTUREAND HAS BROUGHT THOUSANDS OF PROTESTING FARMERS INTO THE STREETS TO REINFORCE ITS POSITION BUT NOWADAYS THE ORGANIZATION IS RIVEN BY INTERNAL STRAINS UNSURE OF THE FUTURE AND ABOVE ALL WORRIED THAT ITS INTERESTS MAY BE SACRIFICED BY THE NEW FRENCH GOVERNMENT IN THE NAME OF FREE TRADE AND EUROPEAN SOLIDARITY THE MONTHOLD CONSERVATIVE GOVERNMENT OF PRIME MINISTER EDOUARD BALLADUR HASN'T YET FIXED ITS TRADE POLICY PARTICULARLY ON THE VEXING ISSUE OF WHETHER TO SUPPORT A NEW GENERAL AGREEMENT ON TARIFFS AND TRADE THE WORLD'S BROADEST MULTILATERAL TRADE COMPACT THE US AND MOST OF FRANCE'S PARTNERS IN THE EUROPEAN COMMUNITY BELIEVE THAT A NEW GATT ACCORD WOULD BOOST FADING INTERNATIONAL BUSINESS CONFIDENCE AND ECONOMIC GROWTH BY REDUCING TRADE BARRIERS FARMING IS JUST ONE OF SEVERAL SECTORS AFFECTED BEFORE THEY WERE ELECTED MR BALLADUR AND HIS COLLEAGUES TOOK A TOUGH LINE ON THE ISSUE LIKE FRANCE'S DEFEATED SOCIALIST ADMINISTRATION THEY REJECTED AN ECUS ACCORD ON AGRICULTURE NEGOTIATED LATE LAST YEAR AS A PRELUDE TO A FULL GATT PACT AND EVEN TALKED ABOUT VETOING A FINAL PACKAGE FRENCH FARMERS COMPLAIN THAT THE ACCORD WOULD REDUCE THEIR INCOMES AND LIMIT THEIR EXPORTS WHILE ENABLING US FARMERS TO CAPTURE NEW MARKETS BUT SINCE THE CONSERVATIVES TOOK OFFICE THE RHETORIC IN PARIS HAS SOFTENED PUBLICLY THE NEW GOVERNMENT CONTINUES TO OPPOSE THE ECUS ACCORD JUST YESTERDAY FRANCE'S NEW FARM MINISTER JEAN PUECH IN LUXEMBOURG FOR AN EC MEETING ON THE SUBJECT REITERATED THAT THE TRANSATLANTIC DEAL IS TOTALLY UNACCEPTABLE FOR FRANCE BUT EXPLICIT TALK OF A VETO HAS DISAPPEARED AND MR BALLADUR IN BONN LAST WEEK MERELY URGED GERMAN CHANCELLOR HELMUT KOHL TO TAKE NOTE OF THE VITAL CHARACTER OF FARMING FOR FRANCE MR BALLADUR INSISTS FRANCE'S POSITION HASN'T CHANGED BUT GIVEN THE NEW TONE EUROPEAN DIPLOMATS IN PARIS SPECULATE THAT MR BALLADUR COULD BACK DOWN AND AGREE TO ONE OF THE MOST CONTENTIOUS PARTS OF LAST YEAR'S ACCORD ON OILSEEDS WITHIN WEEKS THE FARM FEDERATION ALSO SENSES A DEAL IN THE AIR AND IS NERVOUS AT ITS ANNUAL CONGRESS LAST WEEK NEAR THE FORMER ROYAL PALACE AT VERSAILLES WORRIED TALK OF GATT FILLED THE AIR WHEN THE AGRICULTURE MINISTER MR PUECH CAME TO ADDRESS THE CONGRESS ON FRIDAY THE LOBBY'S PRESIDENT DIDN'T MINCE WORDS CALLING THE MINISTER A POLITICAL VIRGIN WHO HASN'T YET HAD TIME TO DISAPPOINT US FEDERATION PRESIDENT LUC GUYAU TOLD MR PUECH THAT IF THE NEW GOVERNMENT CHANGED FRANCE'S STAND ON GATT YOU WOULD FIND ME ON YOUR STREETS AND ALL THE FARMERS WITH ME BEHIND THE FIGHTING TALK ARE SOME REAL FEARS AND MEMORIES OF BETRAYAL FRANCE IS WESTERN EUROPE'S BIGGEST AGRICULTURAL POWER BUT IT HAS SEEN THE NUMBER OF ITS FARMERS FALL FROM FIVE MILLION TO JUST OVER ONE MILLION IN A GENERATION THEY BENEFITED FROM EUROPE'S COMMON AGRICULTURAL POLICY IN THE 1960S AND '70S BUT ARE NOW SUFFERING AS BUDGETCONSCIOUS EC GOVERNMENTS CUT BACK ON ARTIFICIALLY HIGH PRICES AND OVERPRODUCTION THE MOMENT OF TRUTH FOR THE FARM FEDERATION CAME LAST MAY THE NOWOUSTED SOCIALIST GOVERNMENT HAD PROMISED NOT TO AGREE TO A SWEEPING REFORM OF THE COMMON AGRICULTURAL POLICY THEN BEING PROPOSED AT EC HEADQUARTERS THEN SUDDENLY WITHOUT CONSULTING THE FEDERATION THE GOVERNMENT SIGNED THE REFORMS ANYWAY THE FRENCH FARM LOBBY ORGANIZED DEMONSTRATIONS SOME OF WHICH TURNED VIOLENT BUT WAS UNABLE TO REVERSE THE DECISION FOR AN ORGANIZATION THAT SAW ITSELF AS A PARTNER TO THE GOVERNMENT THE EPISODE WAS A PAINFUL SIGN OF WANING INFLUENCE IT ALSO SPLIT THE ORGANIZATION SOME FARMERS PARTICULARLY IN CEREALGROWING AREAS OF THE SOUTH SET UP THEIR OWN COORDINATION RURALE GROUP AND COMPLAINED BITTERLY THAT THE FEDERATION HAD FAILED IN ITS PRIMARY DUTY AT THE VERSAILLES CONGRESS SELFCRITICISM WAS THE ORDER OF THE DAY BUT FEDERATION OFFICIALS SAY THEY TRADITIONALLY HAVE BETTER RELATIONS WITH CONSERVATIVE GOVERNMENTS THAN WITH SOCIALIST ONES AND THEY WERE PLEASED TO BE THE FIRST GROUP INVITED TO MEET MR BALLADUR AFTER HIS INAUGURATION A SECOND MEETING IS PLANNED FOR EARLY MAY AT WHICH SUBSTANTIVE ISSUES OF AGRICULTURAL POLICY INCLUDING GATT ARE EXPECTED TO BE DISCUSSED MR BALLADUR HAS ALSO SIGNALED HIS CONCERN ABOUT RURAL DECLINE EARLY ON HE ORDERED A TEMPORARY SUSPENSION OF THE CONSTRUCTION OF BIG SUPERMARKETS IN THE COUNTRYSIDE BUT SOME IN THE FARM FEDERATION SUSPECT THIS AND OTHER MEASURES MR BALLADUR IS EXPECTED TO ANNOUNCE COULD JUST BE A SUGAR COATING ON THE BITTER PILL OF A FUTURE GATT ACCORD AS MR GUYAU THE ORGANIZATION'S PRESIDENT ADMITS WE ARE ALL FEELING VERY FRAGILE 9304270118 930427 PACIFIC G&E TO REDEEM BONDS SAN FRANCISCO PACIFIC GAS & ELECTRIC CO SAID IT WILL REDEEM ON JUNE 1 ALL OF ITS 749 MILLION OF 8625 SERIES UU FIRST AND REFUNDING MORTGAGE BONDS OUTSTANDING DUE 2002 BOND HOLDERS WILL RECEIVE 102440 AND 43125 CENTS IN ACCRUED INTEREST FOR EACH 1000 PRINCIPAL AMOUNT THE UTILITY COMPANY SAID THE MOVE WOULD LOWER ITS FINANCING COSTS BY ABOUT 17 MILLION OR 76 MILLION OVER THE LIFE OF THE BONDS 9304270117 930427 MARKETING & MEDIA COKE AGREES TO BUY MEXICAN UNIT STAKE FOR 195 MILLION BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY COCACOLA CO SAID IT AGREED TO PAY 195 MILLION FOR A 30 STAKE IN THE SOFTDRINK DIVISION OF FOMENTO ECONOMICO MEXICANO SA OR FEMSA A MEXICAN BEVERAGE GIANT THAT OWNS THE LARGEST COKE FRANCHISE IN THE WORLD COKE'S MOVE WHICH HAD BEEN RUMORED FOR WEEKS REFLECTS THE GROWING COMPETITIVENESS OF THE SOFT DRINK INDUSTRY IN MEXICO WHERE PER CAPITA CONSUMPTION IS SECOND ONLY TO THAT OF THE US THE PURCHASE PRICE FOR THE FEMSA UNIT FEMSA REFRESCOS SA WHICH HAD SALES OF ABOUT 400 MILLION LAST YEAR FELL IN THE LOWER END OF THE RANGE EXPECTED BY ANALYSTS COKE WAS PROBABLY RELUCTANT TO PAY MONTERREYBASED FEMSA A PREMIUM PRICE FOR ITS OWN NAME INDUSTRY OBSERVERS SAID FEMSA'S B SHARES FELL 37 YESTERDAY PART OF A BROADER DECLINE IN MEXICO'S BOLSA DE VALORES WHICH WAS HURT BY RENEWED CONCERNS ABOUT PROSPECTS FOR COMPLETION OF THE PROPOSED NORTH AMERICAN FREE TRADE AGREEMENT NONETHELESS ANALYSTS SAW THE AGREEMENT AS A PLUS FOR FEMSA AND COKE FEMSA IS GETTING CAPITAL AND EXPERTISE AND COKE SHAREHOLDERS ARE BUYING SOME VERY CHEAP EARNINGS SAID CARLOS LABOY AN ANALYST AT JAMES CAPEL INC EVERYONE MAKES OUT AS EXPECTED COKE AND FEMSA SAID THEY PLAN AN INTERNATIONAL EQUITY OFFERING FOR FEMSA REFRESCOS WHICH WOULD HAVE A STOCK LISTING SEPARATE FROM ITS PARENT FEMSA SAID PART OF THE PROCEEDS FROM THE STOCK OFFERING WOULD GO TOWARD A 500 MILLION FIVEYEAR EXPANSION PLAN COKE CHAIRMAN ROBERTO C GOIZUETA SAID FEMSA REFRESCOS WHOSE BOARD WILL HAVE FIVE DIRECTORS FROM FEMSA AND FOUR FROM COKE MIGHT EVENTUALLY EXPAND INTO OTHER LATIN AMERICAN COUNTRIES BUT MR GOIZUETA SAID THE PRIORITY WILL BE TO STRENGTHEN COKE'S PRESENCE IN MEXICO WHERE IT IS RECEIVING STIFF COMPETITION FROM PEPSICO AFFILIATES AC NIELSEN ESTIMATES THAT FOR THE EIGHT WEEKS ENDED JAN 31 COKE HAD A 50 SHARE OF THE TAKEHOME MARKET IN MEXICO COMPARED WITH 21 FOR PEPSI BUT PEPSI HAS MANAGED A NEAR EVEN MARKET SPLIT IN MEXICO CITY THE LARGEST METROPOLIS IN THE WORLD FEMSA PRESIDENT OTHON RUIZ SAID THAT AFTER CLOSING THE EQUITY SALE TO COKE FEMSA WOULD TRY TO ARRANGE A SIMILAR INTERNATIONAL JOINT VENTURE FOR ITS BEER SUBSIDIARY WHICH PRODUCES ABOUT THREEQUARTERS OF FEMSA'S 2 BILLION IN ANNUAL REVENUE 9304270116 930427 BUSINESS BRIEF PETRIE STORES CORP SPECIALTY STORE OPERATOR TO POST EARNINGS DECLINE PETRIE STORES CORP ESTIMATED FIRSTQUARTER EARNINGS DECLINED CITING SLOW SALES AND HEAVY PROMOTIONAL ACTIVITY THE SECAUCUS NJ OPERATOR OF WOMEN'S SPECIALTY STORES SAID SAMESTORE SALES FOR FEBRUARY MARCH AND THE FIRST THREE WEEKS OF APRIL DECLINED 18 COMPARED WITH A YEAR EARLIER PETRIE SAID SALES HAVE BEEN HIGHLY PROMOTIONAL DUE TO UNUSUAL WEATHER AND A LACK OF CONSUMER CONFIDENCE LAST YEAR PETRIE REPORTED FIRSTQUARTER NET OF 69 MILLION OR 15 CENTS A SHARE ON SALES OF 323 MILLION 9304270115 930427 BUSINESS BRIEF OSHKOSH B'GOSH INC FIRSTQUARTER NET INCOME FELL 43 SALES SAGGED 9 OSHKOSH B'GOSH INC OSHKOSH WIS REPORTED THAT FIRSTQUARTER EARNINGS FELL 43 TO 39 MILLION OR 27 CENTS A SHARE PRIMARILY AS A RESULT OF LOWER SALES IN THE COMPANY'S DOMESTIC WHOLESALE DIVISION THE APPAREL MAKER SAID SALES FELL 9 TO 932 MILLION FROM 1023 MILLION A YEAR EARLIER WHEN IT EARNED 68 MILLION OR 47 CENTS A SHARE INCLUDING A 601000 LOSS FROM AN ACCOUNTING CHANGE THE COMPANY ALSO SAID ITS LATEST EARNINGS WERE HAMPERED BY A 12 MILLION CHARGE FOR EXPENSES CONNECTED WITH THE CLOSING OF A MANUFACTURING PLANT IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY OSHKOSH FELL 175 TO 1550 9304270114 930427 WHO'S NEWS COMMISSIONER OF PATENTS PICKED WASHINGTON PRESIDENT CLINTON HAS PICKED BRUCE LEHMAN TO BE COMMISSIONER OF PATENTS AND TRADEMARKS AT THE COMMERCE DEPARTMENT MR LEHMAN IS A PARTNER WITH THE LAW FIRM OF SWINDLER & BERLIN A FORMER CHIEF COUNSEL OF THE HOUSE SUBCOMMITTEE OVERSEEING THE PATENT OFFICE MR LEHMAN ADVISED MR CLINTON ON PATENT ISSUES DURING THE TRANSITION HIS NOMINATION NEEDS SENATE CONFIRMATION SEPARATELY LEE BROWN THE FORMER POLICE COMMISSIONER IN NEW YORK CITY HAS EMERGED AS THE LEADING CANDIDATE TO BE THE NEW ANTIDRUG CZAR 9304270113 930427 TEXCAN'S HOLDING COMPANY EL PASO TEXAS TEXSCAN CORP SAID STOCKHOLDERS APPROVED A MERGER PLAN TO CREATE A HOLDING COMPANY STRUCTURE THE COMPANY WHICH MAKES ELECTRONIC PRODUCTS FOR THE CABLE TELEVISION INDUSTRY SAID THAT IT WILL BECOME A UNIT OF TSX CORP THE NEW HOLDING COMPANY ON APRIL 28 AND THAT ITS STOCKHOLDERS WILL BECOME STOCKHOLDERS OF TSX TEXSCAN SAID EACH OF ITS COMMON SHARES OUTSTANDING WILL BE CONVERTED INTO ONE TSX COMMON SHARE AND TEXSCAN SHAREHOLDERS WILL BE ENTITLED TO RECEIVE ONE TSX WARRANT REPRESENTING THE RIGHT TO PURCHASE ONE OR TWO TSX COMMON SHARES FOR EACH TEXSCAN SHARE THEY OWN THE COMPANY SAID THE PLAN WILL HELP POSITION IT FOR NEW ACQUISITIONS 9304270112 930427 WHO'S NEWS FOSTER WHEELER CORP FOSTER WHEELER CORP CLIFTON NJ THIS ENGINEERING AND CONSTRUCTION COMPANY NAMED LISA FRIES GARDNER 36 YEARS OLD VICE PRESIDENTCHIEF COMPLIANCE OFFICER A NEW POST MS GARDNER HAD BEEN ASSISTANT GENERAL COUNSEL SEPARATELY RICHARD J SWIFT 48 WAS ELECTED A DIRECTOR INCREASING THE BOARD TO 14 HE IS FOSTER WHEELER'S PRESIDENT AND CHIEF OPERATING OFFICER 9304270111 930427 BUSINESS BRIEF TOKOS MEDICAL CORP COMPANY EXPECTS TO REPORT MODEST LOSS' FOR 1ST QUARTER TOKOS MEDICAL CORP SANTA ANA CALIF SAID IT EXPECTS TO REPORT A MODEST LOSS FOR THE FIRST QUARTER IN THE YEAREARLIER QUARTER THE PROVIDER OF HOMEMONITORING SERVICES TO PREGNANT WOMEN HAD RESTATED NET INCOME OF 22 MILLION OR 12 CENTS A SHARE LAST MONTH TOKOS SAID IT EXPECTED A MODEST PROFIT IN THIS YEAR'S FIRST QUARTER TOKOS SAID HOWEVER THAT PATIENT REFERRALS SLOWED IN MARCH FROM THE LEVEL AT WHICH THEY HAD APPEARED TO STABILIZE IN JANUARY AND FEBRUARY THE COMPANY ALSO SAID THAT PRICING FOR PRETERM LABOR MANAGEMENT SERVICES WAS LOWER THAN ANTICIPATED 9304270110 930427 LETTERS TO THE EDITOR THE PHYSICAL REALITY OF MENTAL ILLNESS ON BEHALF OF THE AMERICAN PSYCHIATRIC ASSOCIATION AND OUR 38000 PHYSICIANMEMBERS I STRONGLY OBJECT TO RICHARD E VATZ'S DIATRIBE AGAINST A COMPREHENSIVE MENTAL HEALTH BENEFIT BLANKET MENTAL HEALTH COVERAGECRAZY EDITORIAL PAGE APRIL 14 AN ARGUMENT BASED ON THE OUTMODED TEACHINGS OF PSYCHIATRISTPHILOSOPHER THOMAS SZASZ WHO POSTULATES THAT THERE IS NO SUCH THING AS MENTAL ILLNESS THIS HYPOTHESIS DISCREDITED BY MORE THAN 30 YEARS OF BEHAVIORAL AND NEUROSCIENCE RESEARCH DEMONSTRATING THE INTERTWINED BIOLOGICAL AND PSYCHOLOGICAL ROOTS OF MANY MENTAL ILLNESSES HAS NO PLACE IN TODAY'S CRITICAL DEBATE OVER HEALTH CARE REFORM WHICH MUST BE BASED ON GOOD DATA MR VATZ FAILS TO ACKNOWLEDGE THAT MENTAL DISORDERS ARE AS CLEARLY DEFINABLE AS PHYSICAL DISORDERS AND THAT MEDICAL AND PSYCHOLOGICAL TREATMENTS FOR THESE ILLNESSES WORK HE SUGGESTS THAT A COMPREHENSIVE MENTAL HEALTH BENEFIT WOULD OVERWHELM THE SYSTEM BUT EPIDEMIOLOGIC DATA FROM THE NATIONAL INSTITUTE OF MENTAL HEALTH NIMH PROVIDE A DIFFERENT PERSPECTIVE THE FULL SPECTRUM OF ALL MENTAL DISORDERS AFFECTS ABOUT 22 OF THE ADULT POPULATION IN ANY YEAR 7 HAVE SYMPTOMS LASTING A YEAR OR LONGER AND ONLY 9 REPORT SOME DISABILITY ASSOCIATED WITH MENTAL DISORDERS IN CONTRAST ONE IN TWO ADULTS SUFFERS FROM RESPIRATORY DISORDERS AND ONE IN FIVE HAS A CARDIOVASCULAR DISEASE NIMH DATA ON THE EFFECTIVENESS OF TREATMENT SHOW THAT TREATMENT OF SEVERE MENTAL ILLNESSES INCLUDING BIPOLAR DISORDER OBSESSIVE COMPULSIVE DISORDER PANIC DISORDER MAJOR DEPRESSION AND SCHIZOPHRENIA HAS SUCCESS RATES OF 60 TO 80 AS GOOD AS OR BETTER THAN THE SUCCESS RATES OF TREATMENT OF OTHER MEDICAL ILLNESSES IT IS IRONIC THAT ON THE SAME DAY YOU PUBLISHED THE VATZ ARTICLE THE PUBLIC HEALTH SERVICE AGENCY FOR HEALTH CARE POLICY AND RESEARCH ANNOUNCED COMPREHENSIVE GUIDELINES FOR PRIMARY CARE PHYSICIANS TO USE IN DIAGNOSING AND TREATING DEPRESSION BASED ON REVIEWS OF 100000 ABSTRACTS AND 10000 PEERREVIEWED SCIENTIFIC PAPERS THE FEDERAL GUIDELINES ARE STRONG TESTIMONY TO THE REALITY OF THE ILLNESS OF DEPRESSION AND THE OVERWHELMING EFFECTIVENESS OF TREATMENT THE VATZ ARTICLE FEEDS THE FEAR OF RUNAWAY MENTAL HEALTH COSTS SUGGESTING THAT THE WAY TO CONTROL THEM IS TO DECLARE THAT THE ILLNESSES DO NOT EXIST BUT THE ECONOMICS OF THE ISSUE SUGGEST THAT WE CANNOT AFFORD TO EXCLUDE PSYCHIATRIC TREATMENT IN 1990 THE DIRECT COST OF TREATING ALL MENTAL DISORDERS WAS 67 BILLION 10 OF THE TOTAL BILL HOWEVER RECENT DATA PROVIDED TO THE CLINTON HEALTH TASK FORCE SHOW THAT THE INDIRECT COST OF MENTAL ILLNESS SUCH AS LOST PRODUCTIVITY WAS 75 BILLION IN 1990 MR VATZ PERPETUATES THE MYTH OF A MINDBRAIN SPLIT BY SUGGESTING THAT OUTPATIENT PSYCHOTHERAPY IS USED ONLY FOR PROBLEMS IN LIVING THAT REALLY HAVE NO BASIS IN BRAIN DYSFUNCTION BRAINBASED DISORDERS SUCH AS OBSESSIVECOMPULSIVE DISORDER RESPOND EQUALLY WELL TO MEDICATION AND BEHAVIOR THERAPY SOPHISTICATED STUDIES INVOLVING PET SCAN TECHNOLOGY HAVE DEMONSTRATED THAT SIMILAR NEUROPHYSIOLOGICAL CHANGES OCCUR WHEN THE CONDITION IS TREATED WITH EITHER BEHAVIOR THERAPY OR MEDICATION SIMILARLY MAJOR DEPRESSION ANOTHER CONDITION WITH STRONG BIOLOGICAL UNDERPINNINGS ALSO RESPONDS TO BOTH PSYCHOTHERAPY AND MEDICATION PERHAPS THE MOST DISCONCERTING MISINFORMATION IN MR VATZ'S ARTICLE IS THAT PROVIDING REIMBURSEMENT FOR OUTPATIENT PSYCHOTHERAPY WOULD RESULT IN SKYROCKETING COSTS CLASSIC STUDIES FROM WEST GERMANY AUSTRALIA AND OUR OWN KAISERPERMANENTE SYSTEM HAVE CONSISTENTLY DEMONSTRATED THAT THE PROVISION OF COVERAGE FOR OUTPATIENT PSYCHOTHERAPY ACTUALLY RESULTS IN DECREASED EXPENDITURES THROUGH THE COST OFFSET OF REDUCED UTILIZATION OF MEDICAL AND SURGICAL SERVICES AND FEWER PSYCHIATRIC INPATIENT DAYS WHEN MR VATZ QUOTED ME AS HAVING SAID IF YOU LOOK AT THE DIAGNOSTIC MANUAL YOU CAN CLASSIFY ALL OF US UNDER ONE RUBRIC OR ANOTHER OF MENTAL DISORDER HE BOTH OMITTED THE CONTEXT IN WHICH MY REMARKS WERE MADE AND CREATED THE ERRONEOUS IMPRESSION THAT I MIGHT SHARE HIS RADICAL VIEWS ON MENTAL ILLNESS AND REIMBURSEMENT FOR ITS TREATMENT I MADE THESE COMMENTS 10 YEARS AGO DURING A HEARING CONVENED BY FEDERAL JUDGE JOSE CABRANES WHO SOUGHT MY ADVICE AS TO WHETHER COMPULSIVE GAMBLING THOUGH FORMALLY CLASSIFIED AS A DISORDER IN THE AMERICAN PSYCHIATRIC ASSOCIATION'S DIAGNOSTIC AND STATISTICAL MANUAL OF MENTAL DISORDERS DSM III MIGHT REASONABLY CONSTITUTE THE BASIS FOR A DEFENSE OF INSANITY I SUGGESTED THAT RELYING ON DSM III TO DEFINE MENTAL DISEASE FOR PURPOSES OF RAISING THE INSANITY DEFENSE WOULD EXPAND THE DEFENSE BEYOND ITS TRADITIONAL CONFINES AND THAT THIS WAS A DECISION ONLY HE COULD MAKE HE DECLINED TO DO SO DSM III AS ITS TITLE SUGGESTS IS NOT ONLY A DIAGNOSTIC BUT ALSO A STATISTICAL TOOL AND BY VIRTUE OF THE LATTER ATTEMPTS TO ENCOMPASS ALL MANIFESTATIONS OF MENTAL DISORDER UNDER ITS RUBRICS IT CANNOT SERVE AS THE SOLE AND FINAL AUTHORITY FOR DECIDING EITHER WHO SHOULD BE PERMITTED TO RAISE THE INSANITY DEFENSE OR THE EXTENT OF COVERAGE UNDER ANY PLAN FOR NATIONAL HEALTH INSURANCE A CAREFUL READING OF THE INTRODUCTION TO THE MANUAL WOULD HAVE MADE IT CLEAR THAT DSM III SERVES MULTIPLE PURPOSES TO ENABLE CLINICIANS AND INVESTIGATORS TO DIAGNOSE COMMUNICATE ABOUT STUDY AND TREAT VARIOUS MENTAL DISORDERS IT CAUTIONS AS I TRIED TO CONVEY TO JUDGE CABRANES THAT THE USE OF THIS MANUAL FOR NONCLINICAL PURPOSES SUCH AS DETERMINING LEGAL RESPONSIBILITY OR JUSTIFICATION FOR THIRDPARTY PAYMENT MUST BE CRITICALLY EXAMINED IN EACH INSTANCE MY REMARKS ABOUT DSM III CANNOT BE UNDERSTOOD AS DENYING THE REALITY OF MENTAL DISEASE DECISIONS AS TO THE EXTENT OF COVERAGE FOR ITS TREATMENT AS FOR THAT OF PHYSICAL ILLNESS ARE ULTIMATELY POLITICAL ONES AT THE SAME TIME WE CANNOT DISMISS THE FACT THAT MENTAL ILLNESS CREATES AS MUCH SUFFERING AS DOES PHYSICAL ILLNESS THIS KIND OF CYNICAL RHETORIC MASQUERADING AS SCHOLARLY ANALYSIS ONLY HELPS PERPETUATE SELFSERVING MYTHS AND DISCRIMINATORY PRACTICES OF THE HEALTH INSURANCE INDUSTRY MENTAL ILLNESS IS COMMONPLACE AND UNIVERSALLY RECOGNIZED AND IS RESPONSIVE TO MANY AVAILABLE AND PROVED METHODS OF THERAPY I HAVE A 12YEAROLD SON WHO IS MENTALLY DISTURBED AND SEVERELY HYPERACTIVE WE USED THE LIFETIME MAXIMUM ON HIS INSURANCE COVERAGE OF 50000 MORE THAN SEVEN YEARS AGO HOW DO YOU TELL US AS PARENTS THAT WE SHOULD NOT BE ABLE TO GET THE COVERAGE WE PAY FOR HOW ARE WE TO PAY THE MEDICAL BILLS HOSPITAL BILLS AND MEDICINE BILLS THAT ARE ASSOCIATED WITH THIS ILLNESS WE HAVE HAD ALL TYPES OF TESTS DONE MY SON'S CONDITION IS AN ILLNESS HE HAS ORGANIC BRAIN DAMAGE PROBLEMS AS A RESULT OF VIRAL MENINGITIS DOESN'T MR VATZ REALIZE THAT SOME MENTAL ILLNESS IS DISEASEORIENTED THE STATE OF OHIO HAS ADVISED US THAT SINCE WE ARE IN A CERTAIN INCOME RANGE WE ARE ON OUR OWN THE BANKRUPTCY COURT DOESN'T LIKE TO SEE PARENTS LIKE US COMING WE ARE CONSIDERED DEADBEATS THERE SHOULD BE SOME TYPE OF HELP FOR PARENTS OF CHILDREN WITH THESE PROBLEMS AND IT IS TIME THE FEDERAL GOVERNMENT STEPS IN TO HELP US 9304270109 930427 BUSINESS BRIEF ALLIEDSIGNAL INC CONCERN EXPECTS NEW GAINS AS PRODUCTIVITY IMPROVES ALLIEDSIGNAL INC CHAIRMAN LAWRENCE A BOSSIDY TOLD SHAREHOLDERS THAT THE COMPANY CAN ACHIEVE SUBSTANTIAL GAINS IN EARNINGS IN THE FUTURE THROUGH FURTHER PRODUCTIVITY INCREASES HE ALSO SAID THE COMPANY WILL CONSIDER FURTHER DIVIDEND INCREASES BASED ON FUTURE PERFORMANCE THE COMPANY RECENTLY RAISED ITS COMMON STOCK DIVIDEND 16 TO 29 CENTS A SHARE WHICH WAS PAID ON MARCH 10 THE COMPANY WHICH MAKES ENGINEERED MATERIALS AND PRODUCTS FOR THE AUTOMOTIVE AND AEROSPACE INDUSTRIES POSTED A 22 INCREASE IN FIRSTQUARTER PROFIT TO 149 MILLION MR BOSSIDY SAID THE COMPANY HAS UNDERTAKEN EXTENSIVE QUALITY IMPROVEMENT STEPS THE COMPANY'S PRODUCTIVITY ROSE 57 IN THE JUSTENDED QUARTER MR BOSSIDY SAID IN MATERIALS ALONE THE MORRIS TOWNSHIP NJ COMPANY EXPECTS TO REDUCE COSTS BY 100 MILLION THIS YEAR AND ANOTHER 100 MILLION NEXT YEAR 9304270107 930427 CORNING INC'S METPATH IS GIVING INFORMATION TO JUSTICE DEPARTMENT CORNING NY IN THE LATEST DEVELOPMENT IN THE JUSTICE DEPARTMENT'S PROBE OF MEDICAL TESTING LABORATORIES CORNING INC SAID ITS METPATH DIVISION IS PROVIDING INFORMATION TO THE DEPARTMENT'S CIVIL DIVISION CONCERNING ITS SALES AND MARKETING PRACTICES CORNING SAID THAT IT HAS BEEN GIVING INFORMATION TO THE JUSTICE DEPARTMENT VOLUNTARILY SINCE DECEMBER 1991 AND THAT IT WOULD COMPLY WITH A RECENT REQUEST FOR MORE INFORMATION BY MIDMAY IT DECLINED TO ELABORATE ON THE MATTERS UNDER INVESTIGATION BUT SAID IT BELIEVES ITS PRACTICES COMPLY IN ALL MATERIAL RESPECTS WITH APPLICABLE GOVERNMENT REGULATIONS IN DECEMBER NATIONAL HEALTH LABORATORIES INC PAID 110 MILLION AND PLEADED GUILTY TO FRAUD CHARGES TO SETTLE CLAIMS INVOLVING THE GOVERNMENT'S MEDICARE PROGRAM JUSTICE OFFICIALS THEN MADE IT CLEAR THEY WOULD EXAMINE OTHER COMPANIES FOCUSING ON PRACTICES SUCH AS BUNDLING BLOOD TESTS TOGETHER IN DISCOUNT PRICING PACKAGES FOR MOST PATIENTS BUT CHARGING MEDICARE SEPARATELY FOR EACH TEST OFTEN RESULTING IN A SHARPLY HIGHER TOTAL BILL FOR MEDICARE 9304270106 930427 TANDY CORP POSTS FLAT NET INCOME FOR FIRST QUARTER FORT WORTH TEXAS TANDY CORP SAID ITS FIRSTQUARTER NET INCOME WAS FLAT AFTER A GAIN FROM AN ACCOUNTING CHANGE AND A LARGE OPERATING LOSS AT ITS TE ELECTRONICS INC UNIT WHICH THE COMPANY PLANS TO SPIN OFF IN JULY THE ELECTRONICS RETAILER REPORTED NET INCOME OF 351 MILLION OR 43 CENTS A SHARE COMPARED WITH 351 MILLION OR 41 CENTS A SHARE A YEAR AGO PERSHARE EARNINGS ROSE BECAUSE AVERAGE SHARES OUTSTANDING FELL 6 THE LATEST QUARTER'S PROFIT INCLUDES A 13 MILLION GAIN FROM AN ACCOUNTING CHANGE AND A 162 MILLION OPERATING LOSS FROM TE ELECTRONICS AT A TIME WHEN MANY RETAILERS ARE FACING A SLOW ECONOMY THE COMPANY'S SALES GREW 3 TO 8814 MILLION FROM 8537 MILLION A YEAR EARLIER DENNIS TELZROW AN ANALYST AT PRINCIPAL/EPPLER GUERIN & TURNER IN DALLAS SAID THE HIGHER SALES LED TO HIGHERTHANEXPECTED NET INCOME IT'S PRETTY IMPRESSIVE CONSIDERING THE MARCH QUARTER WAS PRETTY DIFFICULT FOR MOST RETAILERS GIVEN THE WEATHER AND SLUGGISHNESS SAID MR TELZROW WHO WAS PREDICTING 40 CENTS A SHARE THE LOSS FROM TE ELECTRONICS WHICH INCLUDES A 22 MILLION OPERATING LOSS ON PERSONAL COMPUTER SALES OF 135 MILLION AND A 109 MILLION OPERATING PROFIT ON CONSUMER ELECTRONICS SALES OF 1916 MILLION HELPS EXPLAIN TANDY'S DESIRE TO SPIN OFF THE UNIT MR TELZROW SAID TE CAN FOCUS ON DEVELOPING BETTER SOME OF ITS BUSINESS SUCH AS MAIL ORDER HE ADDED PREVIOUSLY THE UNIT FACED UNDERCUTTING THE PARENT COMPANY'S RETAIL BUSINESS IF IT ENTERED THE GROWING COMPUTER MAILORDER BUSINESS STILL THE 162 MILLION OPERATING LOSS FROM TE IS A PRETTY UGLY NUMBER MR TELZROW SAID THEY'VE BEEN BLEEDING SUBSTANTIALLY OUT OF THEIR EUROPEAN OPERATIONS LAST MONTH TANDY ANNOUNCED TE WOULD SELL ITS EUROPEAN CENTERED MICRONIC HANDHELD COMPUTER OPERATION TO NORAND CORP AND STREAMLINE ITS GRID/EUROPE OPERATIONS WHICH MAKES AND MARKETS PENBASED COMPUTER PRODUCTS 9304270105 930427 U S WESTSPECTRADYNE VENTURE ENGLEWOOD COLO U S WEST INC AND SPECTRADYNE INC SAID THEY HAVE BEGUN OFFERING AN INTERACTIVE MULTIMEDIA INFORMATION SERVICE IN ABOUT 1000 HOTEL ROOMS IN SAN FRANCISCO THE SERVICE CALLED U S WEST CITY KEY USES COMPACTDISK TECHNOLOGY TO OFFER INTERACTIVE VIDEO AND AUDIO DIRECTORIES TO HOTEL GUESTS BY PUNCHING IN COMMANDS ON THEIR TELEVISION REMOTE CONTROL PADS FOR EXAMPLE GUESTS WILL BE ABLE TO CALL UP THE LOCATION AND MENUS OF LOCAL RESTAURANTS AS WELL AS MAPS OF AREA SHOPPING AND ENTERTAINMENT DISTRICTS ENGLEWOODBASED U S WEST AND DALLASBASED SPECTRADYNE SAID THE SAN FRANCISCO VENTURE IS A TRIAL PROJECT 9304270104 930427 TECHNOLOGY & HEALTH HEARING AID MAKERS WARNED ABOUT FALSE ADS BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FOOD AND DRUG ADMINISTRATION THREATENED TO ACT AGAINST SIX MAJOR MANUFACTURERS AND DISTRIBUTORS OF HEARING AIDS IF THEY DON'T STOP MAKING CLAIMS THE AGENCY REGARDS AS MISLEADING IN LETTERS TO THE COMPANIES THE AGENCY SAID THEIR ADVERTISING PROMOTION AND LABELING CREATE UNREALISTIC EXPECTATIONS FOR THE PERFORMANCE OF THE DEVICES THE COMPANIES ARE BELTONE ELECTRONICS CORP CHICAGO WHICH MAKES CLEARVOICE PRIMA LFE AND OPERA HEARING AIDS DAHLBERG INC GOLDEN VALLEY MINN WHICH MAKES MIRACLEEAR CLARIFIER AND MICRO ELITE ELECTONE INC LONGWOOD FLA WHICH MAKES GOLD SERIES FARO I AND II NEPTUNE AND M30 OMNI HEARING SYSTEMS CARROLLTON TEXAS WHICH MAKES ENVIRO 2000 AND ITS PARENT STARKEY LABORATORIES INC OF EDEN PRAIRIE MINN WHICH MAKES SECRET EAR AND SIEMENS AG'S SIEMENS HEARING INSTRUMENTS DIVISION PISCATAWAY NJ WHICH MAKES LIFESOUND MODELS FDA REGULATIONS ALLOW ONLY THOSE CLAIMS THAT CAN BE SUPPORTED BY CLINICAL DATA BUT THE AGENCY SAID THE SIX COMPANIES HAVE BEEN SAYING THAT THEIR AIDS SIGNIFICANTLY IMPROVE SPEECH RECOGNITION AND INTELLIGIBILITY IN NOISY PLACES SUCH AS RESTAURANTS BASEBALL GAMES AND THEATERS THEY ALSO IMPLY THAT HEARINGAID USERS WILL BE ABLE TO DISTINGUISH SPEECH FROM EXTRANEOUS NOISES AND THAT THE AIDS WON'T AMPLIFY BACKGROUND NOISES THE FDA SAID THE AGENCY SAID THESE CLAIMS AREN'T SUPPORTED BY CLINICAL DATA FDA WILL NOT TOLERATE MISLEADING CLAIMS ON HEARINGAID PRODUCTS COMMISSIONER DAVID KESSLER SAID IN A STATEMENT THESE COMPANIES HAVE OVERSTEPPED THE LINE WITH THEIR ADVERTISING THEY MUST COMPLY WITH THE LAW OR THE AGENCY WILL TAKE FURTHER ACTION INCLUDING SEIZURE OF THE PRODUCT FROM THE MARKETPLACE LEE NORRGARD SENIOR INVESTIGATIVE ANALYST WITH THE CONSUMER AFFAIRS DIVISION OF THE AMERICAN ASSOCIATION OF RETIRED PERSONS SAID BACKGROUND NOISE IS A PERSISTENT PROBLEM FOR PEOPLE WITH HEARING LOSS HE SAID THAT PEOPLE AGED 65 AND OVER BUY ABOUT 65 OF ALL HEARING AIDS MANUFACTURED ABOUT 58 MILLION AMERICANS USE HEARING AIDS ACCORDING TO THE FDA PROMOTIONAL MATERIAL FOR THE HEARING AIDS IMPLIES THAT MOST OR ALL PEOPLE USING THE DEVICES WILL BENEFIT EQUALLY A GENERALIZATION THAT ISN'T SUPPORTED THE MAKERS ALSO FAIL TO DISCLOSE IMPORTANT INFORMATION ABOUT THE HEARING AIDS' LIMITATIONS THE AGENCY SAID THE AGENCY ORDERED THE COMPANIES TO REMOVE THE MISLEADING PROMOTIONAL LITERATURE AND ADVERTISING IMMEDIATELY WARNING THAT CONTINUED DISTRIBUTION COULD RESULT IN ENFORCEMENT ACTION SUCH AS SEIZURE OF THE PRODUCT INJUNCTIONS AND CIVIL PENALTIES THE COMPANIES WERE GIVEN 15 DAYS TO TELL THE AGENCY HOW THEY WILL BRING THEIR PRODUCTS INTO COMPLIANCE IN GOLDEN VALLEY MINN A SPOKESWOMAN FOR DAHLBERG'S MIRACLE EAR UNIT CALLED THE FDA'S ASSERTIONS TOTALLY INACCURATE AND STRESSED THAT THE QUALITY OF THE PRODUCT ISN'T IN QUESTION BY THE FDA SHE SAID MIRACLE EAR IS FULLY COMMITTED TO PROVIDING SAFE AND EFFECTIVE PRODUCTS THAT ARE IN FULL COMPLIANCE WITH ALL REGULATORY AGENCIES AND IS PREPARING A FINAL RESPONSE TO THE AGENCY BELTONE IN CHICAGO SAID IT IS NOW AND HAS ALWAYS BEEN OUR INTENTION TO BE IN FULL COMPLIANCE WITH ALL FDA REGULATIONS BELTONE SAID IT FIRMLY BELIEVES THAT ITS HEARINGAID ADVERTISING IS PROPER WILLIAM AUSTIN PRESIDENT OF STARKEY LABS THE PARENT OF OMNI HEARING IN TEXAS SAID HIS COMPANY HAS BEEN A HISTORICAL LEADER IN THE INDUSTRY'S PUSH TO EARN CONSUMER CONFIDENCE THROUGH THE FIRST UNCONDITIONAL WARRANTIES ON ITS PRODUCTS FREE TRIAL PERIODS AND THE LIKE WE DON'T SELL VIA CONSUMER ADVERTISING HE SAID THE FDA TOOK EXCEPTION APPARENTLY TO MATERIAL IT OBTAINED AT A TRADE SHOW THAT WAS ESSENTIALLY INTENDED FOR DISTRIBUTORS BECAUSE OF THAT MR AUSTIN SAID HE SEES NO PROBLEM IF THE PROMOTIONAL LANGUAGE DIDN'T CONTAIN ENOUGH QUALIFICATIONS TO SUIT THE FDA IT'S NOT GOING TO CHANGE OUR SALES ONE IOTA IF WE CHANGE THE LANGUAGE HE SAID JOHN ZEI PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SIEMENS HEARING INSTRUMENTS AND ELECTONE INC OFFICIALS DIDN'T RETURN PHONE CALLS SEEKING COMMENT 9304270103 930427 INTERNATIONAL TOSHIBA UNIT MAJORITY STAKE TOKYO ONKYO CORP A JAPANESE CONSUMERELECTRONICS CONCERN SAID JAPANESE INDUSTRIALIST NAOTO OHTSUKI IS ACQUIRING A MAJORITY STAKE IN THE COMPANY FROM TOSHIBA CORP THE SIZE OF THE STAKE WASN'T DISCLOSED NOR WERE TERMS OF ITS PURCHASE THE TRANSACTION WAS DISCLOSED IN A STATEMENT FROM THE RAMSEY NJ HEADQUARTERS OF THE COMPANY'S ONKYO USA CORP UNIT MR OHTSUKI HOLDS INTERESTS IN A NUMBER OF TECHNOLOGY AND MANUFACTURING COMPANIES IN FIELDS SUCH AS OFFICE PRODUCTS AND CONSUMER ELECTRONICS 9304270102 930427 BUSINESS BRIEF NORD RESOURCES CORP MINING AND MINERAL CONCERN TO GET SETTLEMENT PAYMENT NORD RESOURCES CORP SAID IT WILL RECEIVE A 225 MILLION SETTLEMENT PAYMENT FROM ONE OF SEVERAL DEFENDANTS IN A SUIT FILED AGAINST PAST AND CURRENT OWNERS DIRECTORS AND OFFICERS OF ITS FORMER EXCLUSIVE SALES AGENT BOMAR RESOURCES INC NOW BRINC LTD THE PAYMENT IS FROM FORMER BOMAR PRESIDENT AND COFOUNDER BENJAMIN BOLLAG THIS BRINGS THE SETTLEMENTS RECEIVED BY NORD TO MORE THAN 5 MILLION THEY STEM FROM A 56 MILLION ARBITRATION AWARD LAST YEAR TO THE DAYTON OHIO MINING AND MINERAL EXPLORATION CONCERN NORD SAID THE ARBITRATION PANEL FOUND BOMAR ACTED FRAUDULENTLY AS AGENT FOR NORD'S SIERRA RUTILE LTD UNIT NORD WHICH SAYS BOMAR IS FINANCIALLY UNABLE TO SATISFY THE AWARD HAS PURSUED CIVIL ACTION 9304270101 930427 S&P REVISES OUTLOOK ON 52 BILLION BONDS OF NEW YORK STATE NEW YORK STANDARD & POOR'S CORP SAID IT REVISED ITS RATINGS OUTLOOK TO STABLE FROM NEGATIVE FOR NEW YORK STATE'S 52 BILLION GENERAL OBLIGATION BONDS CURRENTLY RATED AT SINGLEAMINUS THE STATE'S ACHIEVEMENT OF AN OPERATING SURPLUS THE SECOND YEAR OF TIMELY BUDGET PASSAGE AND THE ADOPTION OF A BUDGET BASED ON REASONABLE ASSUMPTIONS PROVIDE THE IMPETUS FOR THE OUTLOOK CHANGE THE RATINGS AGENCY SAID FOR THE FIRST TIME IN THE LAST SIX FINANCIAL PERIODS NEW YORK CLOSED THE FISCAL YEAR WITH A GENERAL FUND OPERATING SURPLUS 671 MILLION WHICH PROVIDES ADDITIONAL FISCAL FLEXIBILITY WHICH WAS NOT PRESENT IN PRIOR STATE BUDGETS S&P SAID IN A STATEMENT GOV MARIO M CUOMO SAID S&P AND OTHER RATING AGENCIES' RECENT POSITIVE DECISIONS INDICATE THAT NEW YORK'S REACTION TO THE RECESSION CUTTING PROJECTED SPENDING MAINTAINING THE RATES OF OUR BROADBASED TAXES AND CONTINUING TO REFORM OUR FISCAL PRACTICES WAS PRUDENT HOWEVER A PERMANENT SOLUTION NEEDS TO BE FOUND FOR THE STATE'S LONG TERM STRUCTURAL IMBALANCE WHICH IS PARTIALLY CAUSED BY THE FAILURE OF THE STATE TO MAKE PERMANENT OVER 1 BILLION OF REVENUES AND BY RAPIDLY RISING EXPENDITURES IN THE AREA OF GRANTS TO LOCAL GOVERNMENTS S&P SAID IT NOTED THAT SOCIAL SERVICE COSTS THE MOST RAPIDLYGROWING ASPECT OF NEW YORK'S BUDGET NEEDED TO BE FURTHER CONTROLLED 9304270100 930427 BUSINESS BRIEF ALLEGHENY LUDLUM CORP FIRM POSTS QUARTERLY GAINS CALLS OUTLOOK FAVORABLE' ALLEGHENY LUDLUM CORP A SPECIALTY STEEL AND METALS MAKER SAID IT EXPECTS CONTINUING FAVORABLE OPERATING PERFORMANCE IN THE SECOND QUARTER THE PITTSBURGH COMPANY CITING INCREASED STAINLESS STEEL SALES OPERATING EFFICIENCIES FROM CAPITAL INVESTMENTS AND COST CONTROLS POSTED FIRSTQUARTER NET INCOME OF 183 MILLION OR 56 CENTS A SHARE ON SALES OF 2899 MILLION A YEAR EARLIER THE COMPANY HAD A LOSS OF 1139 MILLION OR 346 A SHARE REFLECTING AN ACCOUNTING CHARGE OF 1252 MILLION OR 380 A SHARE YEARAGO OPERATING NET WAS 113 MILLION OR 34 CENTS A SHARE ALLEGHENY LUDLUM ALSO SAID FIRSTQUARTER 1993 EARNINGS WERE BOOSTED BY 56 MILLION OR 10 CENTS A SHARE FROM CONTINUING INVESTMENT VALUATION GAINS RESULTING FROM AN INVESTMENT IN A LIMITED PARTNERSHIP FUND 9304270099 930427 BUSINESS BRIEF UNIVAR CORP NET INCOME DROPS 628 FALLING BELOW EXPECTATIONS UNIVAR CORP SAID ITS NET INCOME PLUNGED 628 IN ITS FISCAL FOURTH QUARTER AS SLUGGISH ECONOMIC CONDITIONS WORLDWIDE CONSTRAINED SALES GROWTH THE KIRKLAND WASH CHEMICAL DISTRIBUTOR SAID NET INCOME IN THE QUARTER ENDED FEB 28 FELL TO 487000 OR THREE CENTS A SHARE FROM 13 MILLION OR SEVEN CENTS A SHARE A YEAR EARLIER SALES ROSE SLIGHTLY TO 4156 MILLION FROM 4099 MILLION A YEAR EARLIER ANALYSTS HAD EXPECTED A PROFIT OF SIX CENTS TO 16 CENTS A SHARE IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE UNIVAR'S STOCK WAS QUOTED AT 10125 A SHARE DOWN 375 CENTS BESIDES THE ANEMIC GLOBAL ECONOMY THE COMPANY SAID IT HAS BEEN HIT BY HIGHER PRODUCT COSTS AND OTHER INCREASED EXPENSES DURING THE QUARTER 9304270098 930427 BUSINESS BRIEF BLACK & DECKER CORP FIRM POSTS QUARTERLY PROFIT AFTER LOSS A YEAR EARLIER BLACK & DECKER CORP POSTED EARNINGS FOR THE FISCAL FIRST QUARTER FOLLOWING A STEEP LOSS IN LAST YEAR'S FIRST QUARTER THAT WAS LARGELY DUE TO ACCOUNTING CHANGES FOR THE QUARTER ENDED APRIL 4 THE TOWSON MD MAKER OF POWER TOOLS AND HOUSEHOLD PRODUCTS AND SUPPLIER OF INFORMATION SYSTEMS HAD NET INCOME OF 139 MILLION OR 13 CENTS A SHARE COMPARED WITH A NET LOSS OF 2307 MILLION OR 376 A SHARE REVENUE INCREASED 28 TO 11 BILLION THE EARNINGS EXCEEDED ANALYSTS' EXPECTATIONS WITHOUT CHARGES RELATED TO ACCOUNTING CHANGES LAST YEAR'S FIRSTQUARTER NET INCOME WOULD HAVE BEEN 69 MILLION OR SIX CENTS A SHARE BLACK & DECKER HAS 834 MILLION SHARES OUTSTANDING COMPARED WITH 622 MILLION IN LAST YEAR'S FIRST QUARTER 9304270097 930427 WHO'S NEWS ICN PHARMACEUTICALS ELECTS AVERY DENNISON CHAIRMAN TO BOARD COSTA MESA CALIF ICN PHARMACEUTICALS INC SAID IT ELECTED CHARLES D MILLER THE 65YEAROLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF AVERY DENNISON CORP A DIRECTOR OF THE DRUG COMPANY THE ELECTION FOLLOWS A BID BY AN ICN SHAREHOLDER TO OUST CHAIRMAN MILAN PANIC AND THE REST OF THE BOARD THE ADDITION OF MR MILLER INCREASES THE ICN BOARD TO NINE MEMBERS A FEDERAL COURT JUDGE IN NEW YORK RECENTLY ISSUED AN ORDER TEMPORARILY BLOCKING THE SHAREHOLDER CALIFORNIA STOCKBROKER RAFI KHAN FROM SOLICITING SUPPORT FROM OTHER SHAREHOLDERS THE JUDGE HASN'T RULED ON ICN'S REQUEST FOR A PRELIMINARY INJUNCTION ICN DECLINED TO COMMENT YESTERDAY ON THE TIMING OF MR MILLER'S APPOINTMENT BUT TWO ICN DIRECTORS SAID RECENTLY THAT THE COMPANY BEGAN A SEARCH FOR ADDITIONAL DIRECTORS LAST YEAR WELL BEFORE MR KHAN LAUNCHED HIS FIGHT FOR CONTROL AVERY DENNISON IS AN OFFICEPRODUCTS MAKER BASED IN PASADENA CALIF AN ICN SPOKESMAN SAID THE COMPANY USES AVERY DENNISON PRODUCTS AS DOES MOST EVERY COMPANY BUT THAT THE RELATIONSHIP WASN'T AN IMPORTANT FACTOR IN MR MILLER'S ELECTION 9304270096 930427 MARKETING & MEDIA AND NOW SAY HELLO TO OUR GOOD FRIEND MR CONAN O'BRIEN LITTLEKNOWN COMIC TO TAKE SEAT AT LATE NIGHT' DESK AS SHANDLING SPAT FLARES BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DAVID LETTERMAN IS LEAVING BUT LATE NIGHT WILL LIVE ON AT NBC WHICH SAID YESTERDAY IT WILL REPLACE DAVE WITH CONAN NBC TAPPED COMEDIAN CONAN O'BRIEN WHO ISN'T EXACTLY A HOUSEHOLD NAME TO SUCCEED DAVID LETTERMAN AS HOST OF ITS 1235 AM SHOW WHEN MR LETTERMAN JUMPS TO CBS THIS SUMMER THE CHOICE TRIGGERED AN IMMEDIATE SPAT AS VARIOUS SIDES DISAGREED OVER WHETHER NBC EVER MADE AN OFFER TO A FAR BETTERKNOWN CANDIDATE GARRY SHANDLING MR O'BRIEN A WRITER AND PRODUCER FOR THE FOX NETWORK'S ANIMATED SERIES THE SIMPSONS GOT THE JOB AFTER THE NBC'S TALKS WITH MR SHANDLING'S REPRESENTATIVES BROKE OFF BUT NBC DENIED PUBLISHED REPORTS THAT SAID IT HAD MADE AN OFFER TO THE QUIRKY MR SHANDLING A FORMER STANDIN FOR JOHNNY CARSON THE NETWORK DENIED EVEN SO MUCH AS MEETING WITH HIM WHILE OTHER PEOPLE INSIST MR SHANDLING TURNED DOWN A DIRECT OFFER BECAUSE HE DIDN'T THINK HE HAD ENOUGH TIME TO GET A NEW SHOW READY BY SEPTEMBER SUCH DISPUTES OVER WHO OFFERED WHAT TO WHOM TAKE ON HEIGHTENED IMPORTANCE IN SHOW BIZ PARTICULARLY AT A TIME WHEN NBC IS SMARTING OVER BEING SPURNED BY MR LETTERMAN CONAN O'BRIEN HAS EXTENSIVE COMEDY CREDITS IN HIS OWN RIGHT HE IS A FORMER PRESIDENT OF THE HARVARD LAMPOON A FORMER MEMBER OF THE IMPROVISATION TROUPE THE GROUNDLINGS AND IS A FORMER WRITER AND SKETCH PLAYER FOR NBC'S SATURDAY NIGHT LIVE THE NEW PROGRAM WILL FEATURE TALK COMEDY AND SKETCHES NBC SAID WHILE SATURDAY NIGHT LIVE EXECUTIVE PRODUCER LORNE MICHAELS HAS BEEN DEVELOPING THE SHOW IT HASN'T BEEN DECIDED WHETHER HE WILL ACTUALLY PRODUCE IT THE MYSTERY OF WHETHER NBC A UNIT OF GENERAL ELECTRIC CO REALLY DID MAKE A FORMAL OFFER TO MR SHANDLING MAY ONE DAY BE SOLVED HOWEVER AND ON GARRY SHANDLING'S SHOW HE CONTINUES TO HOST THE FICTIONAL TALK SHOW THE LARRY SANDERS SHOW ON HBO AND THE LATENIGHT SPOOF TAPES THROUGH THE SUMMER 9304270095 930427 FOREIGN EXCHANGE DOLLAR DECLINES ACROSS A BROAD FRONT YELTSIN VOTE AND ECONOMIC NEWS CITED BY RICHARD SCHUMACHER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR FELL AGAINST MOST MAJOR CURRENCIES MONDAY PRESSURED BY THE APPARENT ENDORSEMENT RUSSIAN PRESIDENT BORIS YELTSIN RECEIVED FROM VOTERS IN HIS NATION SUNDAY AND BY CONTINUING DISAPPOINTMENT WITH THE PACE OF THE US ECONOMIC RECOVERY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 15688 MARKS DOWN FROM 15825 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11055 YEN MARGINALLY FIRMER FROM 11050 YEN STERLING WAS TRADING AT 15840 UP FROM 15747 AT ABOUT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 11067 YEN AND AT 15708 MARKS PLAYERS SAID THE RUSSIAN POLITICAL DEVELOPMENTS AND NEWS OF A FALL IN US HOME SALES IN MARCH WEIGHED ON THE DOLLAR MONDAY THE US ECONOMIC DATA IN PARTICULAR ADDED TO A SENSE OF BEARISHNESS ABOUT THE US CURRENCY TIED TO THE STATUS OF THE US ECONOMIC REVIVAL THEY ADDED THE APPARENT SUCCESS OF MR YELTSIN AND HIS SUPPORTERS IN RUSSIAN BALLOTING ON ECONOMIC AND POLITICAL REFORM EASED THE THREAT OF POLITICAL INSTABILITY IN RUSSIA AND SPARKED PURCHASES OF THE MARK MONDAY TRADERS SAID ACCORDING TO PRELIMINARY OFFICIAL RESULTS ABOUT 60 OF VOTERS EXPRESSED CONFIDENCE IN MR YELTSIN A VARIETY OF EXIT POLLS ALSO SHOWED VOTERS FAVOR HIS ECONOMIC REFORMS AND EARLY ELECTIONS FOR THE RUSSIAN PARLIAMENT ALTHOUGH THE FINAL TALLIES AREN'T LIKELY TO GIVE THE RUSSIAN PRESIDENT AN OFFICIAL MANDATE TO CALL EARLY ELECTIONS FOR THE PARLIAMENT WHICH HAS BEEN THE MAIN OPPONENT OF HIS REFORM EFFORTS THEY ALMOST CERTAINLY WILL SHORE UP MR YELTSIN'S POSITION SAID DAVID SOLIN MANAGER OF FOREIGN EXCHANGE SALES AT TORONTO DOMINION BANK IN NEW YORK THE VOTE EMPHASIZES THAT YELTSIN IS IN PLACE HE STILL HAS A ROCKY ROAD BUT NOW HAS ONE LESS MINEFIELD TO PASS THROUGH MR SOLIN SAID GIVEN GERMANY'S PROXIMITY TO RUSSIA AND ITS STATUS AS RUSSIA'S LARGEST FOREIGN CREDITOR MR YELTSIN'S SUCCESS HELPED BUOY THE MARK MONDAY MR SOLIN SAID CONCERNS ABOUT INSTABILITY IN RUSSIA HAD CAUSED SOME MOVEMENT OUT OF THE MARK IN RECENT DAYS HE NOTED THE DOLLAR HAD GAINED SOME SUPPORT FROM THIS MOVEMENT BECAUSE OF PERCEPTIONS OF IT AS A SAFEHAVEN CURRENCY HE ADDED A DROP IN US EXISTINGHOME SALES IN MARCH ALSO CONTRIBUTED TO THE DOLLAR'S DECLINE MONDAY SAID ALBERT SORIA FIRST VICE PRESIDENT AT KANSALLIS OSAKE PANKKI A FINNISH BANK IN NEW YORK SALES OF EXISTING US SINGLEFAMILY HOMES FELL 29 IN MARCH FROM FEBRUARY TO A SEASONALLY ADJUSTED ANNUAL RATE OF 336 MILLION THE NATIONAL ASSOCIATION OF REALTORS SAID ALTHOUGH THE MARCH DECLINE WAS WITHIN MARKET EXPECTATIONS MR SORIA SAID IT ADDED TO A GLOOMY PICTURE ABOUT THE PACE OF THE US ECONOMIC RECOVERY US DATA REMAIN TERRIBLY WEAK AND THE HOUSING DATA ONLY COMPOUND THINGS MR SORIA SAID PARTICULARLY AT A TIME WHEN US MORTGAGE RATES HAVE DECLINED TO THEIR LOWEST LEVELS IN YEARS A DROP IN HOME SALES IS WORRISOME HE ADDED COUPLED WITH THE FACT THAT GERMAN INTEREST RATES HAVEN'T BEEN DECLINING AS RAPIDLY AS HAD BEEN EXPECTED THE SLUGGISHNESS IN THE US RECOVERY IS LEADING MARKET PARTICIPANTS TO FOCUS ON THE INTERESTRATE GAP BETWEEN THE US AND GERMANY SAID ALEXIS MCCARTHY CORPORATE FOREIGN EXCHANGE TRADER AT BANQUE INDOSUEZ SHORTTERM INTEREST RATES IN THE US ARE ABOUT FOUR PERCENTAGE POINTS BELOW COMPARABLE RATES IN GERMANY THE FOCUS ON THE USGERMAN INTERESTRATE DIFFERENTIAL HAS LED TO MOVEMENT OUT OF THE DOLLAR MS MCCARTHY SAID WITH THE US CURRENCY SLUMPING AND INTEREST RATES UNATTRACTIVE IT BECOMES TOO COSTLY TO HOLD DOLLARS SHE ADDED AFTER SEVERAL SESSIONS OF STRONG ACTIVITY DOLLARYEN TRADING WAS NOTICEABLY QUIET MONDAY PLAYERS SAID THE DOLLAR HELD TO A TIGHT RANGE AGAINST THE JAPANESE CURRENCY THROUGHOUT THE GLOBAL DAY AND ENDED SLIGHTLY HIGHER PEOPLE JUST DECIDED TO TAKE A BREATHER MS MCCARTHY SAID THERE WAS LITTLE FRESH NEWS TO PROMPT TRADING SHE ADDED ALSO BECAUSE OF JAPAN'S COMING GOLDEN WEEK HOLIDAYS DEALING IN TOKYO HAS BEGUN TO SLOW SHE SAID GOLDEN WEEK RUNS FROM APRIL 29 TO MAY 5 JAPANESE BUSINESSES AND BANKS WILL CLOSE DURING MUCH OF THAT PERIOD ALTHOUGH TRADING IN EUROPEAN CURRENCIES WAS LESS VOLATILE THAN ON FIDAY IT WASN'T FEATURELESS PLAYERS SAID THE PESETA HELD STEADY AGAINST THE MARK MONDAY TRADERS SAID SPECULATIVE PRESSURE AGAINST THE SPANISH CURRENCY HAD EASED AT LEAST AT PRESENT FOLLOWING CONCERTED CENTRAL BANK INTERVENTION TO SUPPORT THE CURRENCY FRIDAY TRADERS ALSO NOTED THE BANK OF SPAIN WAS RUMORED TO HAVE INTERVENED IN THE MARKET TWICE MONDAY THIS SUPPORTED THE PESETA AS WELL LATE MONDAY IN NEW YORK THE MARK TRADED AT 7390 PESETAS DOWN FROM 74 PESETAS LATE FRIDAY PLAYERS SAID HOWEVER THAT THE SPANISH CURRENCY'S DIFFICULTIES PROBABLY AREN'T OVER YET 9304270094 930427 INTERNATIONAL BRIEF ADAM OPEL AG GM GERMAN UNIT WILL CUT 1700 WORKERS BY END OF '93 ADAM OPEL AG THE GERMAN UNIT OF GENERAL MOTORS CORP SAID IT PLANS TO DROP 1700 WORKERS BY THE END OF THIS YEAR OPEL SAID THE CUTS WERE NECESSSARY BECAUSE OF THE STRONG DECLINE IN EUROPEAN AUTOMOBILE DEMAND BUT THAT THEY WOULD BE CONDUCTED ON A VOLUNTARY BASIS OPEL EMPLOYED 52400 PEOPLE AS OF MARCH 31 THE COMPANY SAID THE RECESSION AND RISING COMPETITIVE PRESSURES HAVE HIT EUROPEAN AUTO MAKERS HARD AND MOST ARE PLANNING JOB CUTS EITHER THROUGH ATTRITION AND SPECIAL EARLYRETIREMENT OR OTHER INCENTIVE PACKAGES AUTO EXECUTIVES HAVE SAID THEY ARE MAKING SPECIAL EFFORTS TO OBTAIN WORKERS' COOPERATION 9304270093 930427 BUSINESS BRIEF PROTEON INC COMPUTER PRODUCTS MAKER POSTS FIRSTQUARTER LOSS PROTEON INC REPORTED A FIRSTQUARTER LOSS OF 27 MILLION OR 18 CENTS A SHARE AND SAID IT WOULD REDUCE ITS STAFF 15 THE COMPUTERNETWORKING PRODUCTS CONCERN SAID THE LOSS REFLECTS A RESTRUCTURING CHARGE OF 23 MILLION OR 10 CENTS A SHARE STEMMING FROM THE STAFF CUTS AND RELATED COSTS THE CHARGE WAS PARTLY OFFSET BY A ONETIME GAIN OF 452000 OR THREE CENTS A SHARE RELATED TO THE ADOPTION OF THE NEW ACCOUNTING STANDARD FOR TAXES A YEAR AGO THE WESTBOROUGH MASS COMPANY HAD NET OF 18 MILLION OR 12 CENTS A SHARE REVENUE CLIMBED 57 TO 277 MILLION FROM 262 MILLION 9304270092 930427 TECHNOLOGY BRIEF INTERNATIONAL BUSINESS MACHINES DATAPROCESSING UNIT GETS JOB TOTALING 650 MILLION INTERNATIONAL BUSINESS MACHINES CORP'S DATAPROCESSING UNIT INTEGRATED SYSTEMS SOLUTIONS CORP SAID IT RECEIVED A 650 MILLION 10YEAR CONTRACT FROM EQUIFAX INC UNDER TERMS OF THE AGREEMENT INTEGRATED SYSTEMS SOLUTIONS WILL OPERATE A PORTION OF EQUIFAX'S DATA PROCESSING BUSINESS AND PROVIDE DATACENTER MANAGEMENT AS PART OF THE AGREEMENT ADVANTIS A JOINT VENTURE OF SEARS ROEBUCK & CO AND IBM WILL PROVIDE MAINTENANCE NETWORK SUPPORT AND TECHNOLOGY IBM IS BASED IN ARMONK NY EQUIFAX BASED IN ATLANTA SAID IT WILL RETAIN ALL APPLICATIONS AND WILL CONTINUE TO DEVELOP ITS OWN SOFTWARE EQUIFAX AN INFORMATIONSERVICES COMPANY HAD ABOUT 1 BILLION IN REVENUE FOR THE YEAR ENDED DEC 31 1991 9304270091 930427 MARKETING & MEDIA ADVERTISING BUD TRIES TO JAZZ UP ITS IMAGE TO ATTRACT YOUNGER BEER DRINKERS BY KEVIN GOLDMAN ENOUGH TALKING ALREADY AFTER THREE YEARS OF AN ADVERTISING CAMPAIGN THAT LITERALLY LECTURED VIEWERS ABOUT THE UNIQUENESS OF ITS FLAGSHIP BRAND ANHEUSERBUSCH COS THIS WEEK IS INTRODUCING NEW ADS FOR BUDWEISER THAT DON'T UTTER A SINGLE WORD IT IS ALSO PULLING THE PLUG ON ITS BUZZ PHRASE OF THE PAST THREE YEARS NOTHING BEATS A BUD IN FAVOR OF A NEW SLOGAN PROUD TO BE YOUR BUD SANS VOICEOVER AND DELIVERED VIA SONG LYRICS AND ONSCREEN PRINT ONE WORD AT A TIME THAT MARKS THE FASTEST DEEPSIXING OF A SLOGAN IN THE COMPANY'S HISTORY ALTHOUGH THE ST LOUISBASED BREWER SAYS THE AIM OF THE NEW ADS IS TO RECOGNIZE AND CELEBRATE BUD DRINKERS THE OBJECTIVE IS LESS ALTRUISTIC TO JAZZ UP BUD'S MATURING IMAGE AND APPEAL TO A YOUTH MARKET THAT PREFERS TO GUZZLE LIGHT BEERS BUDWEISER MAY STILL BE THE DOMINANT BRAND BUT IT IS CONTINUING TO SLIP LAST YEAR BUDWEISER SHIPMENTS DECLINED FOR THE SECOND STRAIGHT YEAR DROPPING 3 TO 458 MILLION BARRELS ACCORDING TO BEER MARKETER'S INSIGHTS A WEST NYACK NYBASED NEWSLETTER THE BRAND SHIPPED 498 MILLION BARRELS IN 1990 BUDWEISER IS ALSO TRYING TO KEEP ITS NO 1 POSITION AS BRANDS IN VIRTUALLY EVERY CATEGORY ARE UNDER ATTACK FROM DISCOUNT COMPETITORS BUDWEISER IS A PREMIUMPRICED BRAND BEER IN A MARKET THAT IS INCREASINGLY LOOKING FOR POPULAR PRICES SAYS HELLEN BARRY VICE PRESIDENT OF MARKETING AT BEVERAGE MARKETING CORP WHEN THE RECESSION HIT PEOPLE WANTED TO SATISFY THEIR TASTE FOR BEER MORE CHEAPLY WELL THEY TASTED JUST AS GOOD AS THE PREMIUM BRANDS BUDWEISER IS LOATH TO ADMIT TO WORRYING ABOUT BRAND EROSION AND SAYS THE NEW ADS AREN'T RELATED TO ANY SUCH FEARS BEER IS A MUCH DIFFERENT PRODUCT SAYS AUGUST A BUSCH IV VICE PRESIDENT OF BUD BRANDS THERE IS AN ART TO BREWING A FINE BEER WE DON'T BELIEVE BUDWEISER IS SUFFERING ANY BRAND EROSION NEVERTHELESS THE NEW BUD ADS ARE A 180DEGREE TURN FROM THE JUSTDITCHED EFFORT TITLED BEER TALK A SERIES OF 10 COMMERCIALS IN SOME ADS ALL OF WHICH TOOK PLACE IN A TAVERN A GROUP OF OLDER MEN LECTURED YOUNGER MEN ABOUT BUDWEISER EACH VERBOSE SPOT ENDED TO BE CONTINUED THE NEW 30SECOND ADS ALSO FROM D'ARCY MASIUS BENTON & BOWLES FEATURE ROCK MUSIC AND RAPID EDITING OF ODD SCENES TO SHOW SPIRIT AND COMRADERIE ONE SPOT SHOWS CONSTRUCTION WORKERS ASCENDING IN AN ELEVATOR WHEN ONE HARDHAT OPENS HIS LUNCHBOX AND SHOWS THE GUYS YES ONLY GUYS BABY PICTURES IN THE SAME SPOT A PROUD FATHER HUGS HIS SONS GRADUATING FROM A POLICE ACADEMY THAT MIGHT RAISE A FEW EYEBROWS AMONG ANTIDRINKING ACTIVISTS GIVEN THE IMAGE OF BEERGUZZLING BY CONSTRUCTION WORKERS ON THE JOB AND COPS ON THE BEAT BUT THE SHOTS ARE CAREFUL TO SHOW BUDWEISER ONLY IN APPROPRIATE AFTERWORK SETTINGS BUDWEISER IS SALUTING THE AMERICAN BEER DRINKER MR BUSCH SAID IN A CONFERENCE CALL WITH REPORTERS YESTERDAY THE BEERCHUGGERS SALUTED IN ANOTHER AD INCLUDE A RAINDRENCHED RESCUER WHO HAS JUST PLUCKED A NEIGHBOR'S HEIFER FROM A RAGING RIVER A BARECHESTED MAN JOGGING ALONG A BEACH WITH HIS PET POOCH AND THREE MEATLOVING GUYS REJECTING AN ENCYCLOPEDIC WINE LIST TO ORDER A COLD ONE EACH SPOT SHOWS THE TRADEMARK CLYDESDALE HORSES BUT NOT IN THEIR USUAL POSE OF SLUGGISHLY PULLING A BUD CART INSTEAD THESE ANIMALS ARE FASTMOVING HANDSOME PONIES RUNNING AT BREAKNECK SPEED ALONG A BEACH BUDWEISER DECLINES TO DISCLOSE THE AMOUNT IT IS SPENDING FOR THE MTVSTYLE ADS BUT SAYS IT WILL BE A WELLFUNDED AND HIGHLY CONCENTRATED EFFORT THE ADS WILL BE SEEN IN PRIME TIME LATE NIGHT AND SPORTS PROGRAMMING ACCORDING TO LEADING NATIONAL ADVERTISERS WHICH TRACKS ADVERTISING SPENDING BUDWEISER SPENT 1076 MILLION LAST YEAR TO PUSH ITS SUDS UP 28 FROM 842 MILLION IN 1991 THE NOWDOWNTHEDRAIN BEER TALK ADS SAYS MR BUSCH WERE PRODUCT DRIVEN WITH THE OBJECTIVE TO EDUCATE CONSUMERS ABOUT PECULIAR BUD FACTOIDS SUCH AS HOW IT IS AGED WE WERE PLEASED WITH THE CAMPAIGN SAYS MR BUSCH ADDING IT IS TIME TO GO BACK TO A CAMPAIGN THAT FOCUSES ON THE CONSUMER THOSE APPEARING IN THE ADS ARE VIRTUALLY FREE OF GRAY HAIR UNLIKE THE PREVIOUS BEER TALK CAMPAIGN BUDWEISER CLEARLY WANTS TO APPEAL TO YOUNGER CUSTOMERS AND SAYS IT ISN'T DIFFICULT TO STEER ITS MESSAGE AWAY FROM THE UNDERAGED SET WE DON'T USE PEOPLE UNDER 25 YEARS OLD IN OUR COMMERCIALS SAYS MR BUSCH BUDWEISER SPOTS HE SAYS ARE ALSO DEVOID OF DANCING GIRLS THAT POPULATED BEER SPOTS IN THE 1980S INDEED IN ONE NEW BUD AD THERE IS A WOMAN IN A BATHING SUIT BUT SHE IS TRAINING FOR A COMPETITIVE LONGDISTANCE RACE D'ARCY WHICH FIRST BEGAN WORKING WITH ANHEUSERBUSCH IN 1915 WHEN IT WAS SIMPLY D'ARCY ADVERTISING BELLIED UP TO BUDWEISER WITH 25 TO 30 DIFFERENT CAMPAIGNS AND SLOGANS BEFORE HITTING UPON THE WINNER WHICH MR BUSCH SAYS HE LIKED INSTANTLY HOW DOES HE THINK IT WILL STACK UP AGAINST OTHER BUD CAMPAIGNS INCLUDING THIS BUD'S FOR YOU WHICH LASTED OVER A DOZEN YEARS AND WHEN YOU SAID BUDWEISER YOU SAID IT ALL WHICH DRONED ON FOR A DECADE WE'D LIKE TO THINK SAYS MR BUSCH THAT THIS WILL LAST AT LEAST 10 YEARS IN AN EXECUTIVE SHUFFLE AT BACKER SPIELVOGEL BATES WORLDWIDE A UNIT OF SAATCHI & SAATCHI PLC MICHAEL BUNGEY 52 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER HAS ASSUMED ADDITIONAL RESPONSIBILITIES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE AGENCY'S AMERICAS REGION WHICH INCLUDES THE US CANADA AND LATIN AMERICA HE SUCCEEDS KENNETH R ROGERS 46 WHO HAS BEEN GIVEN THE TITLE OF VICE CHAIRMAN OF THE AGENCY'S WORLDWIDE OPERATION FRANK ASSUMMA 41 HAS BEEN NAMED PRESIDENT OF BACKER'S NEW YORK OFFICE HE HAD BEEN BACKER'S EXECUTIVE VICE PRESIDENT MANAGING DIRECTOR GROUP EXECUTIVE ADDITIONALLY TIMOTHY CORRIGAN 36 FORMER EXECUTIVE VICE PRESIDENT OF BACKER'S EUROPE DIVISION WAS NAMED EXECUTIVE VICE PRESIDENT OF WORLDWIDE CLIENT SERVICES MESSRS ROGERS ASSUMMA AND CORRIGAN REPORT TO MR BUNGEY 9304270090 930427 BUSINESS BRIEF TOTAL PETROLEUM OF NORTH AMERICA COMPANY TO BUY 63 OUTLETS FROM UNIT OF RUFFIN COS TOTAL PETROLEUM OF NORTH AMERICA LTD SAID IT AGREED TO PURCHASE 63 GASOLINE/CONVENIENCE STORES FROM TOWN & COUNTRY FOOD MARKETS INC TERMS WERE NOT DISCLOSED THE RETAIL OUTLETS ARE IN KANSAS MISSOURI OKLAHOMA AND NEBRASKA AN AREA WHERE TOTAL IS EXPANDING ITS MARKETING PRESENCE OF BRANDED GASOLINE THE REFINER AND MARKETER OF PETROLEUM PRODUCTS IN DENVER SAID TWO OF ITS REFINERIES IN KANSAS AND OKLAHOMA WILL SUPPLY THE OUTLETS THE ACQUISITION IS EXPECTED TO BE COMPLETED BY EARLY JUNE SAID TOTAL THE COMPANY ALSO EXPECTS THE NEW STORES TO BE REBRANDED TOTAL BY THE END OF THE SUMMER TOWN & COUNTRY IS A UNIT OF RUFFIN COS A CLOSELY HELD CONCERN WITH DIVERSIFIED INTERESTS LOCATED IN WICHITA KAN 9304270089 930427 PHILLIPS PETROLEUM ATLANTIC RICHFIELD AMERADA POST HIGHER 1STPERIOD RESULTS BY ROBERT JOHNSON AND PAULINE YOSHIHASHI STAFF REPORTERS OF THE WALL STREET JOURNAL THREE PETROLEUM COMPANIES REPORTED HIGHER FIRSTQUARTER EARNINGS AND A FOURTH COMPANY POSTED A DROP IN EARNINGS DUE TO AN ACCOUNTING CHARGE THE RESULTS REFLECTED THE INDUSTRYWIDE TREND OF STRONGER PROFIT MARGINS IN OIL AND NATURAL GAS THE COMPANIES PHILLIPS PETROLEUM CO ATLANTIC RICHFIELD CO UNOCAL CORP AND AMERADA HESS CORP REPORTED NET INCOME IN GENERAL ABOUT AS EXPECTED BUT INDUSTRY FUNDAMENTALS HAVEN'T IMPROVED AS MUCH AS EARNINGS MIGHT SUGGEST SAID ROBIN SHOEMAKER AN ANALYST AT SHEARSON LEHMAN BROTHERS ALTHOUGH THE INDUSTRY'S STRATEGY OF COST REDUCTIONS INCLUDING REDUCED WORK FORCES HAVE BEEFED UP MARGINS FOR NOW MR SHOEMAKER SAID PROFITS REMAIN UNDER PRESSURE OTHERWISE BECAUSE OF OVERALL WEAK ECONOMIC CONDITIONS WORLDWIDE PHILLIPS PETROLEUM REALIZING FIRSTQUARTER BENEFITS FROM COSTCUTTING AND RESTRUCTURING HAD NET INCOME OF 61 MILLION OR 23 CENTS A SHARE COMPARED WITH A RESTATED NET LOSS OF 149 MILLION OR 57 CENTS A SHARE A YEAR EARLIER THE MOST RECENT QUARTER INCLUDES GAINS OF 20 MILLION ON THE SALE OF ASSETS AND 7 MILLION ON THE SETTLEMENT OF A STATE TAX CLAIM THOSE GAINS WERE PARTIALLY OFFSET BY CHARGES TOTALING 23 MILLION FOR THE COST OF WORK FORCE REDUCTIONS AND LOSSES ON FOREIGN CURRENCY TRANSACTIONS PHILLIPS'S YEAREARLIER QUARTER INCLUDED CHARGES OF 62 MILLION FOR WORK FORCE REDUCTIONS 26 MILLION FROM THE EARLY RETIREMENT OF DEBT AND 44 MILLION FROM A CHANGE IN AN ACCOUNTING METHOD AT YEAREND 1992 PHILLIPS HAD 21400 EMPLOYEES COMPARED WITH 22700 A YEAR AGO REVENUE ROSE 12 TO 308 BILLION FROM 276 BILLION PHILLIPS BASED IN BARTLESVILLE OKLA SAID THE AVERAGE SALES PRICE RECEIVED DOMESTICALLY FOR ITS CRUDE OIL ROSE TO 1540 A BARREL IN THE FIRST QUARTER FROM 1436 A BARREL A YEAR EARLIER ARCO REPORTED FIRSTQUARTER NET INCOME OF 260 MILLION OR 160 A SHARE COMPARED WITH A RESTATED NET LOSS OF 212 MILLION OR 131 A SHARE A YEAR EARLIER THE COMPANY'S 1992 QUARTER INCLUDED ACCOUNTING CHARGES TOTALING 392 MILLION ARCO BASED IN LOS ANGELES SAID THE HIGHER PROFIT CAME FROM PARTICULARLY STRONG MARKETS FOR ITS GASOLINE DIESEL AND JET FUEL THE COMPANY SAID THAT HIGHER CRUDE OIL AND NATURALGAS PRICES OFFSET LOWER VOLUMES FOR THOSE PRODUCTS EARNINGS FROM COAL SALES ROSE 56 TO 25 MILLION REVENUE ROSE 4 TO 451 BILLION FROM 433 BILLION AMERADA HESS POSTED NET INCOME OF 329 MILLION OR 36 CENTS A SHARE COMPARED WITH A YEAREARLIER NET LOSS OF 234 MILLION OR 29 CENTS A SHARE THE MOST RECENT QUARTER INCLUDES A GAIN OF 295 MILLION FROM AN ACCOUNTING CHANGE THE YEAREARLIER QUARTER INCLUDES A GAIN OF 131 MILLION FROM AN INCOME TAX REFUND AMERADA HESS BASED IN NEW YORK SAID FIRSTQUARTER OPERATING EARNINGS FROM OIL AND GAS EXPLORATION AND PRODUCTION ROSE 82 TO 599 MILLION THE COMPANY'S REVENUE ROSE 9 TO 158 BILLION UNOCAL'S NET INCOME IN THE FIRST QUARTER FELL 73 BECAUSE OF A ONETIME CHARGE OF 130 MILLION FOR ACCOUNTING CHANGES RELATED TO RETIREE BENEFITS UNOCAL BASED IN LOS ANGELES POSTED EARNINGS OF 11 MILLION OR ONE CENT A SHARE COMPARED WITH 40 MILLION OR 17 CENTS A SHARE A YEAR EARLIER THE YEAREARLIER QUARTER'S RESULTS WERE RESTATED TO INCLUDE A 24 MILLION GAIN FROM AN ACCOUNTING CHANGE FOR INCOME TAXES OPERATING EARNINGS BEFORE ACCOUNTING CHANGES ASSET SALES AND OTHER ITEMS WERE 98 MILLION OR 37 CENTS A SHARE COMPARED WITH 23 MILLION OR 10 CENTS A SHARE A YEAR EARLIER UNOCAL BENEFITED FROM THE CONTINUED STRENGTH OF THE WEST COAST GASOLINE MARKET AS WELL AS FROM COSTCUTTING MOVES IN RESTRUCTURING FIRSTQUARTER REVENUE FELL 43 TO 232 BILLION FROM 242 BILLION DUE IN PART TO ASSET SALES DURING THE LAST YEAR MILLION FROM SETTLEMENT OF TAX CLAIM ALSO REFLECTS CHARGE OF 22 MILLION FROM WORK FORCE REDUCTION AND 1 MILLION FROM FOREIGN CURRENCY TRANSACTION 9304270088 930427 SHORT INTEREST IN OTC STOCKS HITS NEW HIGH TOTAL IS UP 22 IN MONTH DELL SEAGATE ORACLE APPLE COMPUTER JUMP BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHORT INTEREST IN THE OVERTHECOUNTER STOCK MARKET SET A RECORD FOR THE THIRD CONSECUTIVE MONTH SOARING TO 5091 MILLION SHARES IN MIDAPRIL THIS MONTH'S FIGURE WAS 22 ABOVE MIDMARCH'S LEVEL OF 4983 MILLION SHARES ON THE NASDAQ NATIONAL MARKET SYSTEM WHERE MOST OF THE BIGGEST OTC ISSUES TRADE SHORT INTEREST INCREASED 24 TO 4822 MILLION SHARES FROM MARCH'S 471 MILLION BUT THE MONTH SAW A DROP IN SHORT SELLING AMONG THE SMALLEST STOCKS WHICH MAKE UP ABOUT A THIRD OF THE NASDAQ MARKET SHORT INTEREST IN THESE STOCKS SLIPPED 15 TO 269 MILLION SHARES SHORT SALES ARE BETS THAT A STOCK'S PRICE WILL FALL AN INVESTOR SELLS BORROWED SHARES KNOWING THAT THEY MUST EVENTUALLY BE REPLACED FOR RETURN TO THE LENDER IF THE REPLACEMENT SHARES COST LESS THAN THOSE SOLD EARLIER THE SHORT SELLER MAKES A PROFIT SHORT INTEREST IS THE TOTAL OF SHARES SOLD SHORT AT ANY POINT IN TIME THIS MONTH'S FIGURES REPRESENT THOSE SALES REPORTED AS OF APRIL 7 AND SETTLED AS OF APRIL 15 THE NATIONAL MARKET SYSTEM'S SHORT INTEREST RATIO AS OF MIDAPRIL ROSE TO 251 FROM 221 THE SHORT INTEREST RATIO FOR THE SMALLEST NASDAQ STOCKS FELL TO 077 FROM 082 THE RATIO THE NUMBER OF TRADING DAYS AT THE MARKET'S AVERAGE VOLUME THAT WOULD BE REQUIRED TO CLOSE OUT THE TOTAL SHORT POSITION THROUGH SHARE PURCHASES IS A MEASURE OF TRADER SENTIMENT SOME ANALYSTS SUGGEST THE RATIO HAS WEAKENED AS AN INDICATOR BECAUSE OPTIONS AND OTHER DERIVATIVE STOCK PRODUCTS CAN BE USED TO HEDGE SHORT POSITIONS AMONG COMPANIES WITH THE LARGEST SHORTINTEREST POSITIONS DELL COMPUTER'S SHORT INTEREST ROSE 11 TO 76 MILLION SHARES SEAGATE TECHNOLOGY LEAPED 56 TO 27 MILLION SHARES ORACLE SYSTEMS NEARLY DOUBLED TO 21 MILLION SHARES AND APPLE COMPUTER JUMPED 30 TO 36 MILLION SEVERAL RESTAURANT STOCKS' SHORT INTEREST POSITIONS HAVE INCREASED SINCE MIDMARCH CHECKERS DRIVEIN RESTAURANTS CLIMBED 29 TO 37 MILLION SHARES BUFFETS ROSE 8 TO NEARLY THREE MILLION SHARES AND OUTBACK STEAKHOUSE JUMPED 6 TO 36 MILLION SHARES AMONG OTHER COMPANIES THAT HAD AN INCREASE IN THEIR SHORT INTEREST SPORTS & RECREATION SAW ITS SHORT POSITION SURGE TO 11 MILLION SHARES MORE THAN FOUR TIMES THE LEVEL IN MIDMARCH ON MARCH 17 THE TAMPA FLA COMPANY TOLD ANALYSTS AND INVESTORS THAT THE COMPANY'S SALES WERE HURT BY STORMY WEATHER YESTERDAY THE STOCK DROPPED 1 TO 23 1/4 ARGOSY GAMING SHORT INTEREST WAS 827055 SHARES MORE THAN FIVE TIMES THE MIDMARCH AMOUNT THE ALTON ILL COMPANY WENT PUBLIC AT 19 A SHARE ON FEB 18 YESTERDAY THE STOCK EDGED UP 1/4 TO 23 3/4 LAST WEEK ARGOSY SAID IT EXPECTED TO BEGIN OPERATIONS OF A NEW RIVERBOAT GAMBLING CASINO FOR THE MEMORIAL DAY WEEKEND TO REPLACE THE EXISTING ALTON BELLE CASINO 9304270087 930427 BUSINESS BRIEF ARMSTRONG WORLD INDUSTRIES INC FIRM POSTS 1STPERIOD PROFIT AGAINST YEAREARLIER LOSS ARMSTRONG WORLD INDUSTRIES INC REPORTED FIRSTQUARTER NET INCOME VS A LOSS ON ACCOUNTING CHARGES IN THE 1992 QUARTER BUT OPERATING PROFIT WAS DOWN 27 MORE THAN EXPECTED THE LANCASTER PA COMPANY HAD WARNED EARLIER THIS MONTH THAT ITS EARNINGS FROM CONTINUING OPERATIONS WOULDN'T MEET ANALYSTS' EXPECTATIONS OF 32 TO 48 CENTS A SHARE ARMSTRONG MAKES FLOORING HOME FURNISHINGS AND BUILDING PRODUCTS NET WAS 113 MILLION OR 21 CENTS A SHARE COMPARED WITH A LOSS OF 1571 MILLION OR 432 A SHARE A YEAR AGO SALES WERE OFF 42 TO 6119 MILLION FROM 6384 MILLION YEAREARLIER RESULTS WERE RESTATED TO INCLUDE CHARGES OF 1726 MILLION OR 464 A SHARE FOR ADOPTION OF NEW ACCOUNTING RULES ARMSTRONG SHARES CLOSED DOWN 50 CENTS YESTERDAY TO 32875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9304270086 930427 BUSINESS BRIEF DIGITAL MICROWAVE CORP RESTRUCTURING AIDS A SWING TO FISCAL 4THQUARTER PROFIT DIGITAL MICROWAVE CORP BENEFITED BY A RESTRUCTURING AND SALES OF TWO PRODUCT LINES REPORTED NET INCOME OF 13 MILLION OR 10 CENTS A SHARE IN THE FISCAL FOURTH QUARTER THE PROFIT FOR THE PERIOD ENDED MARCH 31 CONTRASTS WITH A LOSS OF 152 MILLION OR 127 A SHARE IN THE SAME PERIOD A YEAR AGO THE MAKER OF COMMUNICATIONS SYSTEMS BASED IN SAN JOSE CALIF SAID ITS SALES IN THE MOST RECENT QUARTER ROSE TO 28 MILLION FROM 222 MILLION MICHAEL W MICHIGAMI CHAIRMAN AND CHIEF EXECUTIVE SAID THE PERFORMANCE REFLECTS 2 MILLION IN QUARTERLY SAVINGS FROM A RESTRUCTURING DURING THE FISCAL THIRD QUARTER THAT INCLUDED A WORLDWIDE WORK FORCE REDUCTION OF 11 A 10 PAY CUT FOR ALL EMPLOYEES AND CLOSING OF CERTAIN SALES OFFICES HE ADDED THAT SALES OF THE FIBER OPTIC AND WBAND PRODUCT LINES CONTRIBUTED AN EARNINGS GAIN OF 600000 FOR THE QUARTER AND 2 MILLION FOR THE FISCAL YEAR FOR THE YEAR DIGITAL NARROWED ITS LOSS TO 67 MILLION OR 55 CENTS A SHARE FROM 197 MILLION OR 164 A SHARE SALES ROSE TO 1079 MILLION FROM 90 MILLION 9304270085 930427 LEISURE & ARTS THEATER TECHNOLOGY'S THE WIZARD IN THIS MUSICAL BY EDWIN WILSON NEW YORK BROADWAY MEETS MTV IN THE WHO'S TOMMY THE NEW MUSICAL AT THE ST JAMES FROM THE BEGINNING ROCK MUSIC AND THE BROADWAY THEATER HAVE MADE STRANGE BEDFELLOWS WHEN HAIR EXPLODED ON THE SCENE IN 1968 FOLLOWED IN 1971 BY JESUS CHRIST SUPERSTAR IT WAS ASSUMED THAT THE MERGER OF ROCK WITH THE TRADITIONAL BROADWAY MUSICAL WAS ON ITS WAY BUT IT NEVER HAPPENED NUMEROUS OTHER ATTEMPTS WERE MADE BUT THEY PROVED TOO RESTRAINED FOR ROCK FANS AND TOO SIMPLEMINDED FOR THE REGULAR THEATER AUDIENCE WHILE ALL THIS WAS HAPPENING ON BROADWAY A BRITISH BAND CALLED THE WHO WAS RIDING HIGH IN THE QUITE SEPARATE WORLD OF THEATRICAL ROCK THE GROUP BECAME FAMOUS AMONG OTHER THINGS FOR CONCLUDING ITS CONCERTS BY SMASHING ITS GUITARS TO SMITHEREENS THE COMPOSER OF THE GROUP PETE TOWNSHEND ANXIOUS TO CREATE A ROCK OPERA IN 1969 WROTE A SONG SEQUENCE ABOUT A CHILD CALLED TOMMY WHO BECOMES DEAF DUMB AND BLIND WHEN HE WITNESSES HIS FATHER A SOLDIER RETURNING FROM WAR KILL THE MAN WHO HAS MOVED IN WITH THE CHILD'S MOTHER DIFFERENT ARIAS ON THE ALBUM EXPLAIN HOW THE CHILD WAS SEXUALLY ABUSED BY AN ALCOHOLIC UNCLE TAUNTED BY A SADISTIC COUSIN BECAME AN ASTONISHING WIZARD ON THE PINBALL MACHINE WAS MIRACULOUSLY CURED OF HIS AFFLICTIONS AND BECAME A CULT LEADER TO HORDES OF IDOLATROUS FOLLOWERS THOUGH TOMMY WAS FREQUENTLY PERFORMED IN CONCERTS AND WAS MADE INTO A SURREALISTIC MOVIE BY KEN RUSSELL MR TOWNSHEND RESISTED THE IDEA OF TURNING TOMMY INTO A FULLY PRODUCED STAGE EXTRAVAGANZA UNTIL RECENTLY WHEN HE MET THE EXPERIENCED THEATER DIRECTOR DES MCANUFF BIG RIVER A WALK IN THE WOODS IN DISCUSSING THEIR CURRENT PRODUCTION MESSRS TOWNSHEND AND MCANUFF HAVE SAID THE WORLD WAS FINALLY READY FOR THE IDEAS IN TOMMY BUT THIS CLAIM WON'T WASH ON SEVERAL COUNTS IN THE FIRST PLACE THE ALBUM WAS A SUCCESS FROM THE BEGINNING ITS IDEAS WERE IMMEDIATELY EMBRACED BY A LARGE POPULAR AUDIENCE SECONDLY TOMMY HAS ENTIRELY CONVENTIONAL THINGS TO SAY ABOUT DYSFUNCTIONAL FAMILIES AND CHILD ABUSE IDEAS THAT HAVE BEEN AROUND A LONG TIME AND THAT HAVE BEEN EXPRESSED ELSEWHERE WITH FAR MORE INSIGHT AND CONVICTION NO THE ADVANCES THAT HAVE MADE TOMMY POSSIBLE ARE NOT IN IDEOLOGY BUT IN TECHNOLOGY A GOOD EXAMPLE IS THE VARILIGHT SOMETIMES CALLED THE WIGGLE LIGHT WHICH IS ONLY ONE OF THE AMAZING DEVELOPMENTS OF RECENT YEARS IN THEATER LIGHTING SOUND VIDEO AND PROJECTION VARILIGHT IS AN INSTRUMENT THAT CAN INSTANTANEOUSLY BE ALTERED TO PROJECT ANY ONE OF NEARLY 1000 COLORS IT CAN SWIVEL AND AIM IN ALMOST ANY DIRECTION ITS BEAM CAN BE ADJUSTED IN A SECOND TO BECOME A SLASHING SPOTLIGHT OR A BROAD BEACON ALL OF THIS MIND YOU IS DONE BY REMOTE CONTROL AND THANKS TO COMPUTERIZATION EACH ONE OF SEVERAL HUNDRED WIGGLE LIGHTS CAN BE PREPROGRAMMED THE LIGHTS HANG THERE ABOVE AND AROUND THE STAGE WHILE SOMEONE AT A CONSOLE PUSHES A FEW BUTTONS AND UNCANNY TRANSFORMATIONS OCCUR IN THE SAME MANNER A PERSON SITTING AT AN ENORMOUS SOUND CONSOLE CAN CONTROL THE VOICES AND MUSIC COMING FROM MYRIAD MICROPHONES TO PROVIDE VISUAL ACCOMPANIMENT TO MR TOWNSHEND'S ROCK SCORE MR MCANUFF HAS ASSEMBLED A HUGE ARRAY OF DESIGNERS AND TECHNICIANS JOHN ARNONE SCENERY CHRIS PARRY LIGHTING WENDALL K HARRINGTON PROJECTION STEVE CANYON KENNEDY SOUND LINDA BATWIN AND ROBIN SILVESTRI VIDEO AND GREGORY MEEH SPECIAL EFFECTS THE RESULT IS A SERIES OF VISUAL IMAGES THAT BOMBARD THE AUDIENCE WITH THE SAME RELENTLESS PACE AS THE INCESSANT MUSICAL SCORE ACROSS THE BACK OF THE STAGE ARE 27 SCREENS EACH ABOUT SIX FEET HIGH ONTO WHICH ARE PROJECTED SCENERY EXPLOSIONS CHARACTERS IN FREE FALL YOU NAME IT WHEN TOMMY BECOMES THE WIZARD OF ALL WIZARDS AT THE PINBALL MACHINE A PSYCHEDELIC MACHINE RISES FROM THE STAGE TWISTS TURNS WRITHES IN THE AIR AND THEN EXPLODES IT'S DAZZLING AND THEN WHEN THE AUDIENCE THINKS IT HAS SEEN THE LAST OF THE VISUAL TRICKS SUDDENLY THE ENTIRE THEATER TURNS INTO THE INSIDE OF A PINBALL MACHINE IN THE RHYTHM AND PYROTECHNICS OF THE VISUAL IMAGES MR MCANUFF PROVES HIMSELF TO BE COMPLETELY IN TUNE WITH THE MTV GENERATION HIS TRICK HAS BEEN TO BRING ITS SENSIBILITY TO BROADWAY WITH THE MTV CONNECTION IN MIND IT IS FASCINATING TO OBSERVE THE WAY IN WHICH A MUSICAL NUMBER MOVES TOWARD A CLIMAX IN TOMMY FROM TIME IMMEMORIAL IN MUSICAL THEATER A CLIMACTIC MOMENT ARRIVES WHEN A CURVE OF EMOTIONAL DEVELOPMENT NEARS COMPLETION ESTRANGED LOVERS ARE REUNITED CHARACTERS WHO HAD BEEN SPIRITUALLY BLINDED GAIN INSIGHT AN INDIVIDUAL STRIVING FOR A GOAL FINALLY REACHES IT IN TOMMY THERE IS NO SUCH DELVING INTO A STORY OR CHARACTERS TAKE TOMMY HIMSELF HE IS PLAYED IN THREE STAGES BY DIFFERENT PERFORMERS CRYSTA MACALUSH AND CARLY JANE STEINBORN ALTERNATE AS TOMMY AT AGE FOUR BUDDY SMITH IS THE HERO AT AGE 10 AND MICHAEL CERVERIS IS THE OLDER TOMMY THE ONE WHO SINGS MOST OF THE SONGS IN ALL THREE INCARNATIONS HOWEVER TOMMY IS DRESSED IN PURE WHITE EITHER A LITTLE LORD FAUNTLEROY OUTFIT OR A LOOSER FITTING ROCKSTAR VERSION BUT ALWAYS WHITE IN CONTRAST OBVIOUSLY TO ALL THE OTHERS ON STAGE THERE IS NO CHARACTER DEVELOPMENT FOR TOMMY OR ANYONE ELSE JUST SYMBOLS TRAPPINGS ICONOGRAPHY THEREFORE WHEN A BIG MOMENT ARRIVES IT IS NOT BECAUSE A TRUTH HAS BEEN REVEALED OR A CATHARSIS ACHIEVED IT IS BECAUSE THE MUSIC BUILDS AND EQUALLY IMPORTANT THE VISUAL EFFECTS MULTIPLY ACCELERATE TURN GRAND THE YOUNG AUDIENCES AT TOMMY KNOW WHEN THESE BIG MOMENTS ARE COMING THE LIGHTS AND MUSIC TELL THEM THAT AN APOCALYPSE IS NEAR AND SO THEY CHEER IT ON WHEN I REFER TO YOUNG AUDIENCES I MEAN SOMETHING MORE THAN YOUNGSTERS THE ORIGINAL TOMMY ALBUM HAS BEEN AROUND LONG ENOUGH FOR PEOPLE IN THEIR EARLY 40S TO HAVE FIRST HEARD IT IN THEIR TEENS SO WHEN I SAY YOUNG AUDIENCES AS FAR AS I'M CONCERNED ANYONE THAT AGE OR YOUNGER QUALIFIES WITH ALL THOSE TOMMY BUFFS OUT THERE LIKE OPERA BUFFS WHO ONLY KNOW AIDA FROM RECORDINGS OR CONCERT PERFORMANCE THERE IS NO QUESTION THAT THIS THEATRICAL VIDEO WILL BE A HUGE HIT DOES THIS MEAN THAT MR MCANUFF HAS SOLVED THE PROBLEM OF MARRYING ROCK MUSIC TO THE THEATER NOT REALLY ELECTRONIC WIZARDRY CAN NO MORE CREATE AN ART FORM THAN PINBALL WIZARDRY CAN CREATE A MESSIAH 9304270084 930427 BUSINESS BRIEF HERSHEY FOODS CORP FIRSTQUARTER NET SLUMPED BECAUSE OF SPECIAL CHARGES HERSHEY FOODS CORP'S FIRSTQUARTER EARNINGS WERE DOWN SIGNIFICANTLY BUT THAT WAS DUE TO CHARGES RELATED TO ACCOUNTING CHANGES THE HERSHEY PA FOOD COMPANY POSTED SLIGHT FIRSTQUARTER NET INCOME OF 11 MILLION OR ONE CENT A SHARE DOWN SHARPLY FROM THE YEAREARLIER'S 589 MILLION OR 65 CENTS A SHARE BUT EXCLUDING THE EFFECT OF A 1039 MILLION NONCASH CHARGE ASSOCIATED WITH ACCOUNTING CHANGES FOR POSTRETIREMENT BENEFITS AND INCOME TAXES FIRSTQUARTER NET INCREASED 9 THE CHARGE WAS PARTIALLY OFFSET BY A 406 MILLION GAIN ON THE SALE OF HERSHEY'S 186 STAKE IN FREIA MARABOU AS A SCANDINAVIAN CANDY AND SNACKFOOD COMPANY SALES IN THE QUARTER ROSE 12 TO 8978 MILLION HERSHEY ATTRIBUTED ITS STRONG SALES GROWTH TO ITS DOMESTIC CHOCOLATE BUSINESS AND ITS PASTA GROUP WHICH BOTH POSTED DOUBLEDIGIT VOLUME GAINS AND SIGNIFICANT MARKET SHARE GAINS IN THE PERIOD 9304270083 930427 IBM'S GERSTNER IN PUBLIC DEBUT VOWS TO CUT MORE AND EMPHASIZE SERVICES BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL TAMPA FLA FACING LIVID SHAREHOLDERS IN HIS PUBLIC DEBUT AS INTERNATIONAL BUSINESS MACHINES CORP'S CHAIRMAN LOUIS V GERSTNER JR VOWED TO TURN THE COMPUTER GIANT AROUND WITH MORE STAFF CUTS AND A HEAVIER EMPHASIS ON HIGHTECHNOLOGY CONSULTING AND SERVICES IN ANOTHER REVEALING SIGN OF MR GERSTNER'S EARLIEST STRATEGIC THINKING HE SAID HE DOESN'T ENVISION A WHOLESALE BREAKUP OF BIG BLUE HIS PREDECESSOR JOHN AKERS SPLIT IBM INTO A DOZEN AUTONOMOUS BABY BLUES AND MANY COMPUTER ANALYSTS HAVE PREDICTED THE BABIES WILL ULTIMATELY BECOME INDEPENDENT COMPANIES I DON'T THINK THE ANSWER FOR THE IBM COMPANY IS TO TOSS A FRAGMENTATION GRENADE AND ATOMIZE IT INTO A WHOLE LOT OF DIFFERENT PIECES MR GERSTNER SAID RESPONDING TO A SHAREHOLDER QUESTION HE PRAISED THE VIRTUES OF DECENTRALIZED MANAGEMENT AS WELL AS THE CLOUT LARGE COMPANIES ENJOY AND DECLARED I WANT TO HAVE IT BOTH WAYS MR GERSTNER WAS DELUGED BY QUESTIONS FROM FURIOUS SHAREHOLDERS WHO HAVE SEEN THE MOST TRUSTED OF ALL BLUECHIP INVESTMENTS LOSE HALF ITS VALUE IN THE LAST YEAR AND BECOME MIRED AT 17YEAR LOWS IBM STOCK NO LONGER PROVIDES FOR YOUR OLD AGE BUT IT CERTAINLY HASTENS ITS ARRIVAL DECLARED SHAREHOLDER WILLIAM STEINER ONE OF A LARGE COHORT OF ANGRY RETIREES WHO FLOODED THE FLORIDA MEETING ONE HOLDER COMPLAINED THAT HE WAS THUNDERSTRUCK WHEN IBM SEEMED TO DISCOVER OVERNIGHT THAT IT WAS IN AN IMMENSE CRISIS ANOTHER ASKED BITTERLY WHY MR AKERS HAD RECEIVED A BIG RAISE WHILE IBM'S EARNINGS WERE PLUNGING MR GERSTNER OF COURSE HAD A PERFECT ALIBI WHICH HE INVOKED REPEATEDLY NONE OF THIS HAPPENED ON HIS WATCH SINCE HE ONLY ARRIVED AT IBM ON APRIL 1 BUT SOME HOLDERS COMPLAINED ABOUT MR GERSTNER'S OWN LARGE PAY PACKAGE TOO THE NEW CHAIRMAN ALSO HAD TO DEFLECT A WAVE OF OUTRAGED CRITICISM OF THE BOARD THAT PRESIDED OVER IBM'S FALL SEVERAL HOLDERS EXPLICITLY BLAMED IBM'S WOES ON THE BOARD AND URGED INVESTORS TO CAST PROTEST VOTES AGAINST IBM'S DIRECTORS HOW CAN YOU WORK WITH THAT GROUP OF PEOPLE WHEN THEIR ATTITUDES CAUSED IBM'S CURRENT DEMISE ASKED HOLDER GILBERT JANNELLI A CLEARWATER FLA OPTOMETRIST OTHERS LAMBASTED THE IBM BOARD FOR BEING TOO HEAVILY LOADED WITH RETIRED EXECUTIVES OUTSIDE THE COMPUTER INDUSTRY AND CALLED ON IBM TO BRING IN YOUNGER HIGHTECH EXPERTS ONE SIGN OF THE UNUSUALLY STRONG SENTIMENT AGAINST THE BOARD A RESOLUTION TO MAKE IBM QUIT PAYING BENEFITS TO RETIRED DIRECTORS GARNERED 28 OF THE VOTES CAST STILL ALL 18 OF IBM'S DIRECTORS WERE REELECTED YESTERDAY WITH A PLURALITY OF VOTES IT DOESN'T SURPRISE ME SHAREHOLDERS HAVE A LOT OF REASON TO BE ANGRY SAID RICHARD LYMAN A DIRECTOR AND RETIRED PRESIDENT OF STANFORD UNIVERSITY AFTER THE MEETING OF COURSE IT'S ALWAYS EASIER IN 2020 HINDSIGHT HE ADDED IN A BRIEF OUTLINE OF HIS NASCENT STRATEGY FOR IBM MR GERSTNER LOUDLY ENDORSED THE COMPANY'S RECENT PUSH INTO CONSULTING RUNNING OTHER COMPANIES' NETWORKS AND OTHER COMPUTER SERVICES DEMAND IN THIS MARKET IS SETTING RECORDS HE SAID AT THE SAME TIME TECHNOLOGICAL ADVANCES ALONE HAVE NOT BEEN ABLE TO SUSTAIN REVENUE AND PROFIT GROWTH IN THE HARDWARE SECTORS HE ALSO MADE IT CLEAR THAT HE PLANS TO MAKE MORE CUTS IN IBM'S WORK FORCE BUT DIDN'T OFFER DETAILS WITH ABOUT 300000 EMPLOYEES IBM HAS ALREADY SHED 100000 WORKERS SINCE 1986 THIS YEAR JUST BEFORE MR GERSTNER ARRIVED IT FINALLY ABANDONED ITS LONG TRADITION OF ESCHEWING LAYOFFS HE TOLD SHAREHOLDERS NOT TO EXPECT HIM TO UNVEIL SOME GREAT PLAN AT ONE TIME BUT HE PROMISED TO PIN DOWN WHAT BUSINESSES WE'LL PURSUE WHICH DESERVE PRIORITY AND WHAT COMPETITIVE PLATFORMS WE'LL BUILD ON THE ONLY TIME MR GERSTNER FOUND HIMSELF PERSONALLY ON THE DEFENSIVE CONCERNED HIS PAY PACKAGE 35 MILLION IN ANNUAL SALARY AND BONUS A ONETIME PAYMENT OF ABOUT 5 MILLION AND 500000 STOCK OPTIONS THE ONLY WAY I DO WELL IS IF MY OPTIONS DO WELL HE INSISTED RESPONDING TO A CRITICAL QUESTION HE SAID IBM WAS MERELY PAYING HIM ENOUGH TO MATCH HIS PACKAGE AT RJR NABISCO HOLDINGS CORP BUT ANOTHER SHAREHOLDER STOOD UP AND RETORTED I WANT TO CONGRATULATE YOU ON A NOLOSE SITUATION I THINK 5 MILLION WHETHER THE STOCK GOES UP OR DOWN IS NOT TO BE SNEEZED AT BY COINCIDENCE OR ADROIT TIMING MR GERSTNER WASN'T OFFICIALLY GRANTED HIS OPTIONS UNTIL LAST FRIDAY WHEN IBM STOCK HIT A RECENT LOW OF 4775 IT CLOSED YESTERDAY AT 48375 UP 625 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9304270082 930427 BUSINESS BRIEF COMPUSERVE INC JUDGE ORDERS DATA SERVICE TO PAY 4 MILLION DAMAGES COMPUSERVE INC WAS ORDERED BY A FEDERAL JUDGE TO PAY 4 MILLION IN COMPENSATORY AND PUNITIVE DAMAGES TO TWO MASSACHUSETTS BUSINESSMEN FOR BREACHING AN AGREEMENT IN CONNECTION WITH THE PURCHASE OF A DATABASE SYSTEM BY COMPUSERVE THE AWARD GRANTED TO ANDREW GARLAND AND CHARLES HOUSEMAN GENERAL PARTNERS OF SOFTWARE HOUSE A PORTION OF WHICH COMPUSERVE PURCHASED IN 1986 AMOUNTED TO ABOUT 25 MILLION INCLUDING INTEREST THE JUDGE ADDED 15 MILLION IN PUNITIVE DAMAGES COMPUSERVE OFFICIALS COULDN'T BE REACHED FOR COMMENT LAST NIGHT THE COMPANY BASED IN COLUMBUS OHIO IS AN ONLINE ELECTRONIC DATA SERVICE AVAILABLE TO COMPUTER USERS 9304270081 930427 RAWSTEEL PRODUCTION ROSE 22 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS INCREASED 22 LAST WEEK TO 1849000 TONS FROM 1810000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 15 FROM THE 1822000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 874 OF ITS CAPABILITY LAST WEEK COMPARED WITH 855 THE PREVIOUS WEEK AND 846 A YEAR EARLIER THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENTAGE OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9304270080 930427 LETTERS TO THE EDITORS NO INTERNAL DETERRENTS MEAN EXTERNAL CHAOS IN DEALING WITH THE ISSUE OF JUVENILE CRIME IN HIS APRIL 7 EDITORIALPAGE ARTICLE CHILDREN WHO MURDER JEFFREY DANZINGER FAILS TO ADDRESS THE MOST BASIC ISSUE UNDERLYING THIS GROWING EPIDEMIC HE CALLS FOR ADULT PUNISHMENT FOR JUVENILES WHO COMMIT ADULT CRIMES YET HE NEVER ASKS WHY CHILDREN AS YOUNG AS 10 ARE CAPABLE OF COMMITTING SUCH CRIMES MUCH OF THE ANSWER CAN BE FOUND SIMPLY BY LOOKING TO THOSE WHOM WE ALLOW TO DEFINE WHAT IS DETERMINED AS SOCIETAL NORMS MANY TEACHERS PROFESSORS AND MODERN SAGES TRY TO CONVINCE US THAT THERE IS NO SUCH THING AS AN ABSOLUTE RIGHT OR WRONG PHRASES SUCH AS IT IS OK FOR YOU TO BELIEVE THAT BUT IT JUST DOESN'T WORK FOR ME ARE ACCEPTED AS WISE AND OPENMINDED WE LIVE IN AN ENLIGHTENED SOCIETY YET FOR ALL OUR WISDOM THE GENERAL STATE OF SOCIETY CONTINUES TO DETERIORATE RECENTLY I WAS TALKING WITH SOME CHILDREN ABOUT A QUESTION OF RIGHT AND WRONG AS THE CONVERSATION EVOLVED WE BEGAN TO SPECULATE ON THE QUESTION WHAT IF YOU DON'T GET CAUGHT THE RESPONSE OF ONE SIXYEAROLD BOY WAS IT DOESN'T MATTER BECAUSE GOD KNOWS MY GUESS IS THAT YOU WILL NEVER READ ABOUT THIS CHILD SHOOTING A CLASSMATE HE HAS A SENSE OF RESPONSIBILITY TO GOD A SENSE OF HIGHER PURPOSE YET IN AN AMORAL SOCIETY THERE CAN BE NO HIGHER PURPOSE THAN TO SERVE ONESELF THAT WHICH IS GOOD BECOMES THAT WHICH IS MOST BENEFICIAL FOR EACH INDIVIDUAL EXTERNAL DETERRENTS WILL NEVER BE AS EFFECTIVE AT CONTROLLING JUVENILE CRIME AS INTERNAL SELFCONTROL DRAWN FROM A STRONG SENSE OF RESPONSIBILITY AND PURPOSE EXTERNAL DETERRENTS SIMPLY REDUCE RIGHT AND WRONG TO A QUESTION OF WILL I GET CAUGHT THEY WORK ONLY AS LONG AS THERE IS GENUINE FEAR OF BEING CAUGHT CAN A SOCIETY IN WHICH ABSOLUTE MORAL VALUES ARE NO LONGER TAUGHT SURVIVE CURRENT REALITY GIVES US A CLEAR ANSWER 9304270079 930427 INTERNATIONAL BRIEF SIEMENS AG CONSOLIDATED NET INCOME ROSE 21 IN THE FIRST HALF SIEMENS AG THE GERMAN ELECTRONICS CONCERN REPORTED THAT ITS CONSOLIDATED NET INCOME ROSE 21 TO 877 MILLION MARKS 5542 MILLION FOR THE FIRST HALF THAT BEGAN OCT 1 FROM 859 MILLION MARKS A YEAR EARLIER SALES ROSE 34 TO 37 BILLION BUT THE COMPANY SAID THAT ORDERS FELL 4 THE MODEST INCREASE IN FIRSTHALF PROFIT WAS HIGHER THAN EXPECTED BY MANY INDUSTRY ANALYSTS THE GROUP'S ORDER INFLOW REFLECTED THE WEAKNESS IN THE HOME GERMAN MARKET IN A FINANCIAL REPORT TITLED ECONOMY SLOWS GROWTH SIEMENS SAID ITS WORLDWIDE ORDERS DROPPED 17 BILLION MARKS FROM THE SAME OCTOBERMARCH PERIOD A YEAR EARLIER TO 409 BILLION MARKS THE DROP IN ORDERS WAS LED BY A 7 PLUNGE IN ORDERS IN GERMANY TO 187 BILLION MARKS FROM 20 BILLION MARKS A YEAR EARLIER FOREIGN ORDERS BY CONTRAST EASED ONLY 2 OR 400 MILLION MARKS TO 222 BILLION MARKS 9304270078 930427 LEISURE & ARTS BOOKSHELF THE BEHEADED ART CZAR BY ANDREW FERGUSON JOHN FROHNMAYER CHAIRMAN OF THE NATIONAL ENDOWMENT FOR THE ARTS UNDER PRESIDENT BUSH HAS WRITTEN A BITTER MEMOIR LEAVING TOWN ALIVE CONFESSIONS OF AN ARTS WARRIOR HOUGHTON MIFFLIN 360 PAGES 2295 THOSE WHO FOLLOWED MR FROHNMAYER'S FUMBLING TENURE WILL FIND IN THE BOOK MOMENTS OF UNEXPECTED SELFAWARENESS DESCRIBING HIS MENTAL CONDITION HE WRITES I WAS IN LALA LAND ELSEWHERE AND OFTEN HE ADMITS TO ONE OR ANOTHER OF THE STUPID DECISIONS HE MADE AS CHAIRMAN AND INDEED THERE WERE MORE THAN YOU COULD COUNT THE READER'S HEART LIFTS COULD IT BE THAT JOHN FROHNMAYER IS NO LONGER THE CLUELESS BOOBY WE CAME TO KNOW IN THE BUSH YEARS NO THESE FLASHES OF SELFAWARENESS IT TURNS OUT ARE A DODGE A MERE LITERARY DEVICE TO ADVANCE THE MEMOIR'S CENTRAL CONCEIT MR FROHNMAYER WANTS US TO VIEW LEAVING TOWN ALIVE AS A STORY OF SELFDISCOVERY IN WHICH A GENTLE LOVER OF THE ARTS IS FORGED BY WASHINGTON'S CRUCIBLE INTO A FIERCE DEFENDER OF FREE EXPRESSION A STREETFIGHTING FOE OF POLITICAL OPPORTUNISM AND INTOLERANCE IT IS IN OTHER WORDS A CONVENTIONAL WASHINGTON MEMOIR EQUAL PARTS SELFAGGRANDIZEMENT AND SELFDELUSION USUALLY THE SAME PARTS AFTER A BRIEF FORESHADOWING MR FROHNMAYER'S NARRATIVE OPENS WITH A SCENE ON A COUNTRYCLUB GOLF COURSE HOW MANY MEMOIRS BY BUSHERA REPUBLICANS WON'T OPEN WITH A SCENE AT A COUNTRY CLUB OVER A LEISURELY NINE HOLESSANS CADDY HE AND HIS WIFE DECIDE THAT THE NEA SHOULD BE HIS FROM HIS HOME IN OREGON WHERE HE WORKED AS AN UPTOWN LAWYER AND PARTTIME ARTS NETWORKER MR FROHNMAYER PULLED EVERY POLITICAL STRING WITHIN REACH UNTIL FINALLY PRESIDENT BUSH'S OPERATIVES TAPPED HIM FOR AN INTERVIEW MR FROHNMAYER PROFESSES DISGUST AT THE MANIPULATIONS AND PREVARICATIONS OF WASHINGTON POLITICS BUT HIS COURTSHIP WITH THE BUSHIES ENTAILED SOME PREVARICATION AND MANIPULATION ITSELF MOSTLY HIS IN THE INTERVIEW HE SOMEHOW NEGLECTED TO TELL THEM HE HADN'T VOTED FOR MR BUSH HE DID INSIST HE WAS A SINGER AN ARTIST IN MY OWN RIGHT FOR HE HAD LOGGED MANY LONG HOURS IN THE CHURCH CHOIR BUT THEN CAME THE CLINCHER THE TAPESTRY OF AMERICAN ARTS HE TOLD THEM THEIR DIVERSITY AND RICHNESS WERE SOMETHING THAT THE PRESIDENT COULD USE TO HIS ADVANTAGE I COULD HELP UNITE THIS DIVERSE COMMUNITY THE BUSHIES BOUGHT IT THIS IS NOT SO AMAZING AS IT SEEMS THE BUSH WHITE HOUSE WAS TO POLITICS WHAT THE 1962 METS WERE TO BASEBALL MOST OF ITS RANKING MEMBERS WERE UNITED BY A COMMON BOND THEY HADN'T THE SLIGHTEST IDEA WHAT THEY WERE DOING THERE WHEN MR FROHNMAYER UNCORKED HIS SHAPELY SENTENCES ABOUT A RICH TAPESTRY AND A DIVERSE COMMUNITY THE BUSHIES WERE SURELY DELIGHTED HERE WAS A MAN WHO DIDN'T KNOW WHAT HE WAS DOING EITHER A REAL TEAM PLAYER THEY WERE ONLY PARTLY RIGHT MR FROHNMAYER DISPLAYED THE SAME ADMINISTRATIVE INEPTITUDE CAPACITY FOR INDECISION AND IDEOLOGICAL INCOHERENCE THE PUBLIC LEARNED TO EXPECT FROM BUSH APPOINTEES BUT WHILE OTHERS PRACTICED THEIR ART IN THE RELATIVE OBSCURITY OF THE DEPARTMENT OF LABOR OR THE DEPARTMENT OF EDUCATION MR FROHNMAYER SERVED TIME AT THE NEA WHICH WITH ITS FIDUCIARY TIES TO SUCH ILLUMINATI AS ROBERT MAPPLETHORPE HAD INVITED THE WHITEHOT GLARE OF THE PRESS AND WITH IT THE BUSH ADMINISTRATION'S WORST NIGHTMARE CONTROVERSY AT FIRST AS THE PRESSURE INTENSIFIED MR FROHNMAYER BEHAVED AS A LOYAL BUSHIE WHICH IS TO SAY HE CAVED AND REVOKED FUNDING FOR A SUSPECT PROJECT RIGHTWINGERS CHEERED BUT THE ARTS COMMUNITY DUBBED HIM A SAVONAROLA HURT HE CAVED THE OTHER WAY AND RESTORED FUNDING JESSE HELMS GROWLED BUT THE NEW YORK TIMES EDITORIAL PAGE COOED AS THE CROSSFIRE RAGED GEORGE BUSH WHO POPS UP IN THIS MEMOIR AS A SWEET BEFUDDLED UNCLE BY MARRIAGE SENT HIM LITTLE NOTES YOU'RE DOING FINE WHAT WAS A BUSHIE TO DO MR FROHNMAYER GLANCED RIGHT THEN LEFT AND THREW IN HIS LOT WITH THE NEW YORK TIMES BECOMING A FEROCIOUS ADVOCATE OF HIS UTOPIAN TAPESTRY WHEN A MOMENTARILY STIFFNECKED WHITE HOUSE FIRED HIM AT LAST HE WAS STILL A TEAM PLAYER BUT HE WAS PLAYING FOR THE OTHER TEAM YOU CAN'T BLAME HIM HAD HE FALLEN IN WITH SEN HELMS HE WOULDN'T HAVE FOUND A GENEROUS NEW YORK PUBLISHER FOR HIS MEMOIR NOT TO MENTION A 12CITY BOOK TOUR TO SELL IT LESS FORGIVABLE IS THE BOOK ITSELF MR FROHNMAYER MAY WOW THEM FROM THE CHOIR LOFT BACK IN PORTLAND BUT HE IS NOT AN ARTIST OF THE LITERARY SORT HE LACKS THE TALENT TO WRITE A PAGETURNING TELLALL THOUGH NOT THE BILE HE IS REMARKABLY VICIOUS TO LOWLEVEL SUBORDINATES ESPECIALLY THOSE EMPLOYEES WHOSE LOYALTY TOWARD HIM WAS AS UNRELIABLE AS HIS TOWARD PRESIDENT BUSH CERTAIN REPUBLICAN CONGRESSMEN ARE MEATHEADS SEN HELMS IS A LIZARD WHO WOULD HAVE GUESSED THIS IS INSIDE DOPE AS TOLD BY A DOPE WHO WAS ON THE INSIDE WORSE MR FROHNMAYER ISN'T THOUGHTFUL ENOUGH TO ADVANCE WHAT HE INVARIABLY CALLS MEANINGFUL DIALOGUE ABOUT THE NEA'S FUTURE A WIDELY ACCEPTED RULE OF MEANINGFUL DIALOGUE IS THAT YOU DON'T COMPARE YOUR OPPONENTS TO HITLER WHICH MR FROHNMAYER DOES TWICE AS FOR PRACTICAL ADVICE THE BEST HE CAN DO AS A MAN APPOINTED BY VIRTUE OF HIS POLITICAL CONNECTIONS TO RUN A POLITICAL AGENCY FUNDED THROUGH THE POLITICAL PROCESS BY 535 POLITICIANS IS TO IMPLORE US TO KEEP THE AGENCY FREE OF POLITICAL INTERFERENCE ADVICE NOTED MR FERGUSON A SENIOR WRITER FOR WASHINGTONIAN MAGAZINE WAS A SPEECH WRITER FOR PRESIDENT BUSH 9304270077 930427 GIDDINGS CHIEF W FIFE RESIGNS AMID QUESTIONS BOARD WAS UNCOMFORTABLE WITH 3 FINANCIAL DEALS STOCK PRICE PLUNGES 25 BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL WILLIAM J FIFE RESIGNED AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF GIDDINGS & LEWIS INC AFTER DIRECTORS QUESTIONED SEVERAL FINANCIAL TRANSACTIONS BETWEEN THE HARDDRIVING EXECUTIVE AND THE NATION'S BIGGEST MACHINETOOL CONCERN WALL STREET WAS SURPRISED BY THE ABRUPT DEPARTURE OF MR FIFE WHO WAS LARGELY CREDITED WITH TRANSFORMING THE COMPANY INTO AN INDUSTRY LEADER AND ENGINEERING THE 1991 ACQUISITION OF A MUCH BIGGER RIVAL CROSS & TRECKER CORP GIDDINGS & LEWIS COMMON SHARES LOST ABOUT 25 OF THEIR VALUE IN OVERTHECOUNTER TRADING PLUNGING 675 TO 2050 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING MR FIFE 56 YEARS OLD DIDN'T RETURN TELEPHONE CALLS SEEKING COMMENT ALTHOUGH A COMPANY EXECUTIVE SAID THE TRANSACTIONS WERE LEGAL AND DIDN'T VIOLATE ANY CORPORATE POLICY THE BOARD WAS UNCOMFORTABLE ENOUGH WITH THE TRANSACTIONS TO HAVE THEM SPELLED OUT IN THE COMPANY'S RECENT PROXY THE TRANSACTIONS INCLUDE GIDDINGS & LEWIS'S JUNE 1992 PURCHASE OF A FOURUNIT CONDOMINIUM IN TANTARA MO FROM MR FIFE FOR 155000 THE COMPANY DIDN'T OBTAIN AN INDEPENDENT APPRAISAL ON THE MARKET VALUE OF THE PROPERTY WHICH MR FIFE PURCHASED IN 1985 FOR THAT SAME AMOUNT ALSO THE COMPANY IN 1992 USED A REAL ESTATE AND AUCTION FIRM OWNED BY MR FIFE'S BROTHER TO DISPOSE OF EQUIPMENT FROM CLOSED FACILITIES ACCORDING TO THE PROXY THE AUCTION SERVICE COLLECTED A COMMISSION OF 105577 WHICH THE COMPANY HAS SAID PROBABLY WAS COMPETITIVE WITH WHAT OTHER SERVICES WOULD HAVE COLLECTED THE THIRD TRANSACTION INVOLVED MR FIFE'S DECISION TO BUY LAND NEAR FOND DU LAC WIS WHERE GIDDINGS & LEWIS IS BASED ALONGSIDE A TRACT THAT THE COMPANY WAS PURCHASING FOR EXPANSION PURCHASES IN DECEMBER 1992 THE COMPANY'S NEWS RELEASE HINTS AT INCREASING TENSION BETWEEN MR FIFE AND DIRECTORS OVER THE EXECUTIVE'S AGGRESSIVE OPERATING STYLE ATTRIBUTING HIS RESIGNATION IN PART TO POLICY DIFFERENCES WITH THE BOARD AS WELL AS A COMMUNICATIONS LAPSE BETWEEN MR FIFE AND THE REST OF MANAGEMENT STILL WALL STREET WAS SURPRISED BY THE MOVE BECAUSE MR FIFE'S MANAGEMENT STYLE SEEMS TO HAVE BEEN PAYING OFF FOR THE COMPANY SINCE MR FIFE ARRIVED IN 1987 AT GIDDINGS & LEWIS REVENUE HAS CLIMBED TO 6229 MILLION FOR 1992 FROM 1253 MILLION THE COMPANY REPORTED YESTERDAY THAT FIRSTQUARTER NET INCOME CLIMBED 39 TO 102 MILLION OR 33 CENTS A SHARE FROM 73 MILLION OR 23 CENTS A SHARE FOR THE QUARTER A YEAR EARLIER AN ASSOCIATE SAID LATE YESTERDAY THAT MR FIFE DID A VERY GOOD JOB BUT HE HAS A HARDCHARGING PERSONALITY THAT PUSHES PEOPLE TO THE EDGE THE COMPANY'S RECENT PROXY REPORTS MR FIFE'S COMPENSATION WAS ABOUT 681000 GIDDINGS & LEWIS SAID DIRECTORS WILL APPOINT A SEARCH COMMITTEE FOR A NEW CHIEF EXECUTIVE IN THE MEANTIME CLYDE H FOLLEY A 65YEAROLD DIRECTOR AND FORMER INGERSOLLRAND CO VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER WAS NAMED GIDDINGS & LEWIS CHAIRMAN AND CHIEF EXECUTIVE OFFICER RICHARD C KLEINFELDT 51 CHIEF FINANCIAL OFFICER WAS NAMED ACTING PRESIDENT AND ACTING CHIEF OPERATING OFFICER THE TWO POSITIONS ARE NEWLY CREATED GIDDINGS & LEWIS SAID IT POSTPONED THE ANNUAL MEETING ORIGINALLY SLATED FOR TOMORROW TO MAY 14 9304270076 930427 POLITICS & POLICY PANETTA MORE DISCOURAGED' ON PROSPECTS FOR DEFICITREDUCTION PACKAGE APPROVAL BY DAVID WESSEL AND MICHAEL K FRISBY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S BUDGET DIRECTOR LEON PANETTA IN AN UNUSUALLY CANDID AND PESSIMISTIC ASSESSMENT SAID HE HAS GROWN MORE DISCOURAGED ABOUT THE PROSPECTS FOR SERIOUS DEFICIT REDUCTION THIS YEAR THE 18YEAR VETERAN OF THE HOUSE OF REPRESENTATIVES SAID THAT IN THE LAST FEW WEEKS HE HAS GROWN A LITTLE MORE DISCOURAGED ABOUT THE OUTLOOK FOR MR CLINTON'S DEFICITREDUCTION PLAN BECAUSE OF SHIFTING SENTIMENTS IN CONGRESS IN THIS BUSINESS YOU CAN ALWAYS FIND AN EXCUSE FOR NOT HAVING TO VOTE FOR DEFICIT REDUCTION HE SAID AT A LUNCH WITH REPORTERS I'M HEARING A LOT OF THE SAME ARGUMENTS I HEARD DURING THE '80S AND THAT'S WHAT CONCERNS ME MR PANETTA ALSO GAVE A DOWNBEAT ASSESSMENT OF THE CURRENT PROSPECTS FOR CONGRESSIONAL APPROVAL OF THE NORTH AMERICAN FREE TRADE AGREEMENT AND THE PROMISED US AID FOR RUSSIA HE ADDED THAT PASSAGE OF MR CLINTON'S HEALTHCARE PLAN WILL REQUIRE A MAJOR PRESIDENTIAL EFFORT TO SELL IT TO THE PUBLIC THE BUDGET DIRECTOR SAID MR CLINTON NEEDS TO FOCUS MORE CLEARLY ON A FEW KEY OBJECTIVES AS HE DID EARLIER THIS YEAR WHEN HE PERSUADED CONGRESS TO QUICKLY ENDORSE THE OUTLINES OF HIS BUDGET THE ADMINISTRATION MR PANETTA SAID COULD PROBABLY DO A LITTLE BETTER JOB ABOUT PICKING THE BATTLES YOU WANT TO GO THROUGH ADDING THAT THE PRESIDENT HAS CONCLUDED AS MUCH AS A RESULT OF HIS UNSUCCESSFUL FIGHT WITH REPUBLICANS OVER HIS STIMULUSSPENDING BILL CONGRESS APPROVED ONLY 4 BILLION OF MR CLINTON'S REQUEST TO SPEND 163 BILLION AND DISBURSE 34 BILLION FROM VARIOUS TRUST FUNDS AS MR CLINTON PROMISED THE WHITE HOUSE HAS BEGUN TO CRAFT A SCALEDBACK VERSION OF THE STIMULUS WHICH HAD MONEY FOR HIGHWAYS LOCAL GOVERNMENTS POLLUTION CONTROL IMMUNIZATION AND OTHER CLINTON PRIORITIES MR CLINTON HIMSELF HAS SHOWN SOME FRUSTRATION AT THE FAILURE OF THE STIMULUS PACKAGE AND HIS PLUMMETING APPROVAL RATINGS OVER THE WEEKEND IN BOSTON HE SNAPPED AT A STUDENT WHO MENTIONED THAT HIS POPULARITY AMONG COLLEGE STUDENTS WAS DECLINING BECAUSE HE HADN'T KEPT CAMPAIGN PROMISES WELL GIVE ME AN EXAMPLE THE PRESIDENT DEMANDED MR CLINTON IS SAID TO BE UPSET THAT HIS AGENDA IS NOT MOVING MORE SMOOTHLY AND THAT HE HAS REACHED A ROCKY PERIOD IN WHICH HE FACES A NUMBER OF TOUGH DECISIONS ON DOMESTIC AND FOREIGN ISSUES EVEN AMONG HIS OWN STAFF THERE ARE QUESTIONS ABOUT WHETHER ITS LOOSE STRUCTURE HAS SERVED THE PRESIDENT WELL IN AN ATTEMPT TO GAIN FIRMER POLITICAL FOOTING MR CLINTON MET LATE YESTERDAY WITH HIS POLITICAL AND COMMUNICATIONS TEAM INCLUDING RAHM EMANUEL THE POLITICAL DIRECTOR GEORGE STEPHANOPOULOS THE COMMUNICATIONS DIRECTOR AND DEE DEE MYERS HIS PRESS SECRETARY MR PANETTA ALSO SAID ON THE NORTH AMERICAN FREE TRADE AGREEMENT THE OPPOSITION OF ROSS PEROT MAKES CONGRESSIONAL PASSAGE A LOT MORE DIFFICULT IF CONGRESS HAD TO VOTE ON THE TREATY TODAY HE SAID IT WOULD FAIL ON AID TO RUSSIA CONGRESS ISN'T LIKELY TO ENDORSE MR CLINTON'S PROMISED AID UNLESS IT FIRST PASSES A BILL TO HELP THE DOMESTIC ECONOMY THE CLEAR MESSAGE FROM CONGRESSIONAL DEMOCRATS IS THAT IT'S DIFFICULT TO SUPPORT JOBS PROGRAMS FOR RUSSIA AND NOT FOR PEOPLE WHO ARE UNEMPLOYED IN THEIR DISTRICT HE SAID THE US HAS PLEDGED RUSSIA AND ITS SISTER REPUBLICS 18 BILLION ON TOP OF MR CLINTON'S PREVIOUS PROMISES MR PANETTA SAID THE ADMINISTRATION STILL HASN'T DECIDED WHERE THE MONEY IS COMING FROM BUT HE INDICATED IT ISN'T LIKELY TO COME FROM THE DEFENSE BUDGET NOR IS IT LIKELY THAT MOST OF THE MONEY WILL COME FROM THE FOREIGN AID BUDGET HE SAID BECAUSE THAT WOULD REQUIRE THE POLITICALLY DIFFICULT TASK OF CUTTING AID TO ISRAEL AND EGYPT TO SEND MONEY TO RUSSIA ON HEALTH CARE THE PRESIDENT HAS TO MAKE THE CASE TO THE AMERICAN PEOPLE THAT THIS NEEDS TO BE DONE THAT THE PROGRAM HE'S PROPOSING IS FAIR AND THAT IT DOES THE JOB HE CAUTIONED THAT THIS MAY TAKE A WHILE JUST BY THE NATURE OF HEALTH CARE PLANS BUT HE PREDICTED THAT THE PRESIDENT WILL GO AHEAD WITH AN AMBITIOUS PROPOSAL NEVERTHELESS IF YOU START TRYING TO GAUGE ON THE LEAST COMMON DENOMINATOR OF WHAT YOU CAN GET THROUGH THE CONGRESS THEN I THINK YOU'RE IN DEEP TROUBLE IN A BUDGET RESOLUTION THAT PASSED ON A PARTYLINE VOTE EARLIER CONGRESS ENDORSED MR CLINTON'S DEFICIT GOALS FOR THE FISCAL YEAR THAT BEGINS OCT 1 1994 MR PANETTA ATTRIBUTED THAT SUCCESS TO MR CLINTON'S WILLINGNESS TO SELL THE ECONOMIC PLAN TO THE PUBLIC AND SAID HE HAD BEEN ENCOURAGED THAT SOME MEMBERS OF CONGRESS WANTED TO CUT THE DEFICIT FURTHER THAN THE PRESIDENT CONGRESS IS NOW MOVING TOWARDS THE TOUGHER VOTES OF WHAT SPENDING TO CUT AND WHAT TAXES TO RAISE THAT'S GOING BE THE REAL TEST OF WHETHER OR NOT PEOPLE ARE SERIOUS ABOUT THIS MR PANETTA SAID I DON'T THINK IT'S GOING TO BE THAT EASY 9304270075 930427 ENTERPRISE CAN COMPROMISE SAVE SBA LOANGUARANTEE PROGRAM ADMINISTRATION BANKERS OFFER DIFFERING VIEWS ON FINANCING CHANGES BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ONCE AGAIN THE SMALL BUSINESS ADMINISTRATION'S POPULAR GUARANTEEDLOAN PROGRAM IS IN TURMOIL THE CLINTON ADMINISTRATION AND CONGRESS ARE EXPECTED TO HAMMER OUT A COMPROMISE TO REVISE THE PROGRAM AND KEEP IT FROM RUNNING OUT OF MONEY THE CURRENT TURMOIL STEMS LARGELY FROM AN ADMINISTRATION PROPOSAL TO REDUCE THE GOVERNMENT GUARANTEES AND IMPOSE A SURCHARGE IF THE LOANS ARE SOLD IN SECONDARY FINANCIAL MARKETS MANY PRIVATE LENDERS SAY THIS WOULD FORCE THEM TO MAKE FEWER SBABACKED LOANS CLINTON OFFICIALS CONTEND THAT THE PROPOSED CHANGES ACTUALLY WOULD LET THE GOVERNMENT HELP MORE SMALL COMPANIES BY SPREADING THE LOAN FUNDS MORE WIDELY BUT THEY WOULD FORCE BANKS TO BEAR A LARGER SHARE OF THE COSTS AND RISKS INVOLVED IN SMALLBUSINESS LOANS THE CONFLICT COMES JUST AS THE SBA PROGRAM MAY RUN DRY AS SOON AS TODAY EXTRA FUNDING NEEDED FOR THE PROGRAM WAS PART OF THE CLINTON ECONOMIC STIMULUS PACKAGE THAT FAILED TO PASS CONGRESS LAST WEEK ADVOCATES OF THE SBA LOANGUARANTEE PROGRAM ARE NEGOTIATING WITH CONGRESSIONAL LEADERS ABOUT WAYS TO FUND THE PROGRAM FOR THE REST OF FISCAL 1993 WHICH ENDS SEPT 30 AND THE WHITE HOUSE OFFICE OF MANAGEMENT AND BUDGET IS CONFERRING WITH LENDERS AND SMALLBUSINESS GROUPS TO TRY TO RESOLVE THE IMPASSE JANINE PERRIGNON VICE PRESIDENT AND MANAGER OF SBALENDING FOR COMMERCIAL BANK OF SAN FRANCISCO SAYS THERE MAY BE WAYS TO GRADUALLY CUT GOVERNMENT SPENDING FOR THE SBA PROGRAM I UNDERSTAND THE BUDGET REALITIES THERE ARE LIMITS SHE SAYS BUT WITH THE SLUGGISH RECOVERY THE BANKER ADDS THESE CHANGES COULD SQUEEZE OUT THE KIND OF SMALLBUSINESS BORROWERS THOSE FOR WHOM THE ADMINISTRATION WANTS TO GET LOANS MOST THE DISPUTE HIGHLIGHTS THE CRITICAL NEW ROLE OF THE SBA LOANGUARANTEE PROGRAM DESIGNED TO AID SMALL COMPANIES THAT COULDN'T GET CREDIT ELSEWHERE WITH A CREDIT CRUNCH AND STRICTER BANKING REGULATIONS THE PROGRAM HAS BECOME AN INCREASINGLY IMPORTANT SOURCE OF SMALLBUSINESS FINANCING DOUBLING IN SIZE SINCE 1989 THE GUARANTEED PORTION OF AN SBA LOAN CAN BE FOR AS MUCH AS 750000 THE AGENCY GUARANTEES BETWEEN 75 AND 90 OF THE LOAN AMOUNT THE CLINTON PLAN WOULD REDUCE THE AVERAGE PERCENTAGE OF A LOAN BACKED BY THE SBA TO ABOUT 75 FROM THE CURRENT 81 IT ALSO WOULD IMPOSE AN ANNUAL FEE OF ONE HALF OF A PERCENTAGE POINT ON THOSE SBAGUARANTEED LOANS THAT LENDERS SELL TO INVESTORS THE GOAL REDUCE THE GOVERNMENT'S COST OF SUPPORTING THE PROGRAM MS PERRIGNON SAYS THE GOVERNMENT COULD CUT COSTS BY PLACING A SMALLER SURCHARGE ON ALL SBA LOANS INSTEAD OF JUST THOSE SOLD IN THE SECONDARY MARKET THIS APPROACH WOULD ENCOURAGE SMALLER LENDERS WHICH MOST NEED TO USE THE SECONDARY MARKETS TO CONTINUE DOING SO SHE NOTES AMENABLE TO COMPROMISE OTHER BANKERS INDICATE THEY WOULD ACCEPT A COMPROMISE IT'S A MATTER OF DEGREE INSTEAD OF ALL OR NOTHING SAYS KIP WHITE EXECUTIVE VICE PRESIDENT OF FOUNTAIN TRUST CO IN COVINGTON IND THE SBA PROGRAM WILL GUARANTEE MORE THAN 6 BILLION IN LOANS IN FISCAL 1993 IF CONGRESS APPROVES THE EXTRA FUNDS UNDER CURRENT RULES CONGRESS MUST APPROPRIATE 50 MILLION TO STAND BEHIND EVERY 1 BILLION OF GUARANTEED LOANS BUT IF CONGRESS AGREES TO SHRINK THE SIZE OF THE GUARANTEED SHARE AND ADD THE PROPOSED FEES THE ADMINISTRATION WOULD NEED ONLY 235 MILLION TO BACK UP 1 BILLION OF LOANS THUS THE GOVERNMENT WILL SPEND ABOUT 340 MILLION TO SUPPORT ABOUT 62 BILLION OF LOANS THIS FISCAL YEAR ASSUMING CONGRESS APPROVES SUPPLEMENTAL FUNDING WITH THE ADMINISTRATION'S PROPOSED CHANGES CONGRESS WOULD NEED TO APPROPRIATE ONLY 155 MILLION IN FISCAL YEAR 1994 TO SUPPORT ABOUT 6 BILLION WORTH OF LENDING ACCORDING TO SBA ESTIMATES EXTRA FUNDING FOR FISCAL 1993 STALLED HOWEVER WHEN MR CLINTON'S STIMULUS PROGRAM ENCOUNTERED RESISTANCE FROM SENATE REPUBLICANS IN RECENT YEARS CONGRESS LET THE AGENCY BORROW MONEY PLANNED FOR LATER USE WHEN HIGH DEMAND CAUSED THE SBA LOAN FUND TO RUN DRY SINCE JANUARY THE AGENCY HAS BEEN USING MONEY TECHNICALLY APPROVED FOR THE THIRD AND FOURTH QUARTERS OF THIS FISCAL YEAR EXPERTS EXPECT CONGRESS TO APPROVE ADDITIONAL FUNDS BUT IT IS UNCERTAIN HOW SOON THAT MAY HAPPEN SEN DALE BUMPERS CHAIRMAN OF THE SENATE SMALL BUSINESS COMMITTEE SAYS HE PLANS TO BEGIN GATHERING SUPPORT FOR A SUPPLEMENTAL APPROPRIATIONS BILL TO FUND THE GUARANTEED LOAN PROGRAM FOR THE REST OF THIS YEAR IT NEVER OCCURRED TO ME WHEN THE REPUBLICANS WERE FILIBUSTERING THE STIMULUS PACKAGE THAT THEY WOULD BE WILLING TO SHUT DOWN THE LOAN PROGRAM THE ARKANSAS DEMOCRAT SAYS A NUMBER OF BANKERS INSIST THE LONGERTERM PROPOSED CHANGES AND THE SHORTTERM FUNDING THREAT WOULD HINDER THEIR LOANS TO SMALL BUSINESSES REDUCING THE GUARANTEED PERCENTAGE MEANS YOU THE BANK CARRY MORE OF THE LOAN IT WOULD AFFECT THE AMOUNT OF LENDING I DO SAYS KERBY CROWELL EXECUTIVE VICE PRESIDENT OF STILLWATER NATIONAL BANK IN STILLWATER OKLA WILLIAM GOSSETT PRESIDENT OF LIBERTY NATIONAL BANK IN LONGWOOD FLA AGREES THAT THE SUGGESTED CHANGES WOULD LIMIT THE AMOUNT OF LOANS WE CAN MAKE YOU'RE INCREASING THE RISK ON THE BANK'S BOOKS AND IT COULD MAKE THE CREDIT DECISIONS MORE DIFFICULT TO MAKE OTHER BANKERS SAY THE PROPOSED SURCHARGE ON LOANS SOLD IN THE SECONDARY MARKET WOULD BE EVEN MORE DETRIMENTAL LENDERS ARE REALLY CRYING WOLF BIG WOLF RESPONDS DAYTON WATKINS THE SBA'S ACTING ADMINISTRATOR TO ENCOURAGE LENDING MR CLINTON ASKED FEDERAL BANK REGULATORS TO BACK OFF A LITTLE BIT IN THEIR OVERSIGHT OF SMALLBUSINESS LOANS HE ADDS THE WHITE HOUSE BUDGET OFFICE CONTENDS THE CHANGES WILL HELP MORE SMALL FIRMS RATHER THAN HAMPER LENDING AND ADMINISTRATION OFFICIALS SAY SELLING THE GUARANTEED PORTION OF THE LOAN BRINGS A HANDSOME PROFIT TO MOST BANKS 9304270074 930427 COMMODITIES GOLD PRICES SOAR AGAIN AS RALLY CONTINUES BY WARREN GETLER AND NEIL BEHRMANN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK GOLD PRICES SOARED AGAIN AS THE POWERFUL RALLY THAT BEGAN FRIDAY CONTINUED UNABATED GOLD ROCKETED 630 AN OUNCE MATCHING FRIDAY'S POWERFUL GAIN TO SETTLE AT 35380 THE HIGHEST CLOSE IN EIGHT MONTHS THE RALLY WAS TOUCHED OFF FRIDAY AT LEAST IN PART BY RUMORS THAT SEVERAL BIG SPECULATORS WERE BUYING GOLD AND GOLD SHARES CONFIRMATION THAT SIR JAMES GOLDSMITH AND GEORGE SOROS HAD MADE SIZABLE BETS ON GOLD FUELED THE SECOND WAVE OF HEAVY GOLD BUYING BY COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTORS' MONEY THE ACTIVE JUNE GOLD CONTRACT WHICH TRADED AS HIGH AS 35470 IN HEAVY VOLUME IN NEW YORK YESTERDAY SETTLED 86 ABOVE ITS MARCH 8 INTRADAY LOW OF 32580 IT WAS REPORTED IN THIS PAPER MONDAY THAT SIR JAMES AN ANGLOFRENCH FINANCIER HAD SOLD IN CONJUNCTION WITH ANOTHER FIRM UP TO A 13 STAKE IN US GOLD MINING GIANT NEWMONT MINING CO TO OFFSHORE INVESTMENT FUNDS MANAGED BY CURRENCYTRADER GEORGE SOROS FOR 395 MILLION AND THEN INVESTED THE BULK OF THE PROCEEDS IN GOLD OPTIONS THE SUDDEN SURGE IN GOLD PRICES IS LURING INVESTORS AROUND THE GLOBE BACK TO THE LONGSCORNED PRECIOUS METAL INDEED EVEN SWISS BANKERS WHO IN RECENT YEARS HAVE SOURED ON GOLD AS AN INVESTMENT ARE BUYING FOR THE FIRST TIME IN AGES SOME SWISS BANKS ARE BEGINNING TO ADVISE INVESTORS TO SELECTIVELY BUY GOLD SAID HANS PETER HAUSHEER PRECIOUS METALS ANALYST AT SWISS BANK CORP IN ZURICH OPEN INTEREST WHICH REFLECTS THE NUMBER OF FUTURES CONTRACTS YET TO BE LIQUIDATED SOARED TO MORE THAN 154000 CONTRACTS IN MIDDAY TRADING ON NEW YORK'S COMMODITY EXCHANGE A 54 INCREASE OVER LEVELS PRIOR TO THE RECENT RALLY TRADERS SAID IN A RISING MARKET SUCH OPEN INTEREST IS A BULLISH SIGNAL ANALYSTS SAID THE BIG MOVES IN THE GOLD MARKET IN THE LAST TWO TRADING DAYS DO NOT REFLECT ANY PROFOUND REASSESSMENT OF THE INFLATION OUTLOOK WHICH CONTINUES TO BE FAVORABLE RATHER THEY SAID THERE IS A GROWING SENSE THAT GOLD PRICES ARE RISING AS A RESULT OF STRONG COMMERCIAL DEMAND AND THAT THE METAL IS LOOKING MORE ATTRACTIVE TO INVESTORS AS AN ALTERNATIVE TO PRICEY US STOCK AND BOND MARKETS WHAT WE SEEM TO HAVE HERE IS SOMETHING OF A MONEY FLOW INTO PRECIOUS METALS AND INTO GOLD IN PARTICULAR SAID WILLIAM O'NEIL CHIEF FUTURES STRATEGIST AT MERRILL LYNCH IN NEW YORK THERE'S NEVOUSNESS ABOUT THE BOND MARKET THERE'S CONCERN THAT EQUITIES MAY BE GETTING NEAR THE TOP AND THEN THERE'S THE OVERALL WEAKNESS IN THE DOLLAR HE NOTED ALSO THAT WHILE THERE DOESN'T APPEAR TO BE MUCH DANGER THAT INFLATION IS ACCELERATING IT APPEARS THAT INFLATION RATES WON'T FALL ANY FURTHER THE GOLD MARKET IS ANTICIPATING THAT THE INFLATION CYCLE HAS BOTTOMED SAID MR O'NEILL GRAINS & SOYBEANS WHEAT PRICES SLIPPED AMID SPECULATION THAT RUSSIA IS BALKING AT TERMS OF THE US FOOD FOR PROGRESS AID PACKAGE THAT INCLUDES 700 MILLION IN LOWINTEREST LONGTERM CREDIT AMONG OTHER THINGS A RUSSIAN DELEGATION DUE IN WASHINGTON DC THIS WEEK IS EXPECTED TO ASK THE CLINTON ADMINISTRATION TO WAIVE THE REQUIREMENT THAT 75 OF THE FOOD AID MOVE TO RUSSIA ON US OCEAN VESSELS WHICH GENERALLY CHARGE AT LEAST TWICE THE RATE OF MOST FOREIGNBASED SHIPPING LINES GRAIN INDUSTRY ANALYSTS FIGURE THAT RUSSIA WOULD HAVE TO SPEND ROUGHLY 200 MILLION OF THE FOOD AID PACKAGE ON SHIPPING COSTS WHICH WOULD CUT INTO THE SIZE OF ITS PURCHASES SUCH A REQUEST WOULD BE POLITICALLY TICKLISH FOR THE CLINTON ADMINISTRATION WAIVING THE SOCALLED CARGO PREFERENCE REQUIREMENT WOULD ANGER US MARITIME UNIONS AND SUBSIDIZING RUSSIA'S EXPENSE OF EMPLOYING US VESSELS WOULD GREATLY INCREASE THE COST OF THE PROGRAM THE RUSSIAN DELEGATION IS ALSO EXPECTED TO OBJECT TO ANOTHER TERM THAT BLOCKS MOSCOW FROM USING THE PACKAGE TO BUY SUBSIDIZED WHEAT MOSCOW USUALLY BUYS AMERICAN WHEAT UNDER THE AGRICULTURE DEPARTMENT'S EXPORT ENHANCEMENT PROGRAM WHICH COMPENSATES EXPORTERS FOR SELLING DISCOUNTPRICED US WHEAT TO CERTAIN NATIONS DANIEL W BASSE DIRECTOR OF MARKET RESEARCH AT AGRESOURCE CO CHICAGO CALCULATES THAT THE TERMS OF THE FOOD AID PACKAGE MEAN THAT RUSSIA WOULD EFFECTIVELY HAVE TO SPEND ABOUT 6 A BUSHEL FOR US WHEAT IN TRADING AT THE CHICAGO BOARD OF TRADE THE WHEAT CONTRACT FOR JULY DELIVERY SANK 475 CENTS A BUSHEL TO SETTLE AT A LIFE OF CONTRACT LOW OF 29975 A BUSHEL ENERGY NATURAL GAS PRICES FELL SHARPLY IN A MARKET CORRECTION THAT HAD BEEN EXPECTED FOLLOWING THE RECENT PRICE RUNUP GAS FOR JUNE DELIVERY DROPPED 197 CENTS TO SETTLE AT 2317 A MILLION BRITISH THERMAL UNITS APPROXIMATELY 1000 CUBIC FEET THE JULY CONTRACT WAS DOWN THE MAXIMUM 10 CENTS TO 2353 A MILLION BTUS ON THE NEW YORK MERCANTILE EXCHANGE TRADERS CITED FRIDAY'S EXPIRATION OF THE MAY CONTRACT WEAKNESS IN CASH PRICES AND THE END OF THE SOCALLED BID WEEK IN THE SPOT MARKET FOR THE DECLINES THERE HAD BEEN SPECULATION LAST WEEK THAT A CORRECTION IN THE GAS FUTURES RALLY COULD COME AS SOON AS THIS WEEK 9304270073 930427 MARKETING & MEDIA DISNEY'S NET RISES 25 ON THE SUCCESS OF ITS FILMS PARKS BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL BURBANK CALIF WALT DISNEY CO BUOYED BY RECORD BOXOFFICE RECEIPTS FROM ALADDIN AND BETTERTHANEXPECTED OVERALL PERFORMANCE FROM ITS THEMEPARK OPERATIONS SAID ITS FISCAL SECONDQUARTER NET INCOME ROSE 25 TO 2049 MILLION OR 38 CENTS A SHARE A YEAR AGO DISNEY HAD NET OF 164 MILLION OR 31 CENTS A SHARE REVENUE ROSE 24 TO 202 MILLION FROM 162 BILLION DISNEY SAID HOWEVER THAT ITS INVESTMENT IN THE EURO DISNEY RESORT OUTSIDE PARIS RESULTED IN A LOSS FOR THE QUARTER OF 44 MILLION EURO DISNEY WILL HAVE A SUBSTANTIAL LOSS FOR THE FISCAL YEAR ENDING SEPT 30 DUE TO SEASONAL LOSSES IN THE FIRST HALF OF THE YEAR AND ITS HIGH LEVEL OF FIXED COSTS THE COMPANY SAID DISNEY SAID IT AND EURO DISNEY ARE EXPLORING POTENTIAL SOURCES OF FINANCING TO BOLSTER EURO DISNEY'S CASH AND FINANCIAL POSITIONS WHICH ARE BEING DRAGGED DOWN BY THE LOSSES AND COSTS RELATED TO ITS ONGOING CAPITAL INVESTMENT PROGRAM THE EURO DISNEY LOSS WHICH WAS IN LINE WITH ANALYSTS' EXPECTATIONS WAS MORE THAN OFFSET BY GAINS IN ITS THREE MAIN BUSINESS SEGMENTS THEY'RE CLEARLY CRANKING ON ALL CYLINDERS SAID JEFFREY LOGSDON AN ANALYST AT SEIDLER AMDEC SECURITIES INC IN LOS ANGELES HE SAID THE RESULTS WERE SLIGHTLY BETTER THAN HE HAD BEEN EXPECTING FOR THE SIX MONTHS DISNEY'S NET ROSE 25 TO 4653 MILLION OR 85 CENTS A SHARE FROM 3722 MILLION OR 70 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 25 TO 442 BILLION FROM 355 BILLION A YEAR AGO THE INCREASE CAME DESPITE AN 87 MILLION LOSS REFLECTING DISNEY'S INVESTMENT IN EURO DISNEY OPERATING INCOME FOR THE QUARTER AT DISNEY'S THEME PARKS AND RESORTS SEGMENT JUMPED 45 TO 1637 MILLION THAT INCREASE CAME DESPITE THE FACT THAT THERE WAS ONLY A MODEST INCREASE IN ATTENDANCE IN THE FIRST SIX MONTHS THE HIGHER INCOME REFLECTS A MAJOR INCREASE IN HOTEL BUSINESS AT THE WALT DISNEY WORLD RESORT IN FLORIDA IT ALSO REFLECTS A MORE FAVORABLE COMPARISON TO YEARAGO RESULTS WHICH WERE HIT BY A ONETIME CHARGE ARISING FROM TERMINATION OF DISNEY'S LEASE ON THE QUEEN MARY HOTEL AND ATTRACTION IN LONG BEACH CALIF OPERATING INCOME AT THE COMPANY'S CONSUMER PRODUCTS SEGMENT WAS UP 18 TO 862 MILLION THE OPERATING INCOME OF DISNEY'S FILMED ENTERTAINMENT SEGMENT SHOT UP 84 TO 1567 MILLION THE INCREASE WAS ATTRIBUTABLE NOT ONLY TO ALADDIN BUT ALSO TO THE HOMEVIDEO RELEASE OF PINOCCHIO THE DOMESTIC HOMEVIDEO AND INTERNATIONAL THEATRICAL RELEASE OF BEAUTY AND THE BEAST AND SISTER ACT ALSO CONTRIBUTED TO THE HIGHER INCOME DISNEY SAID IT WILL RELEASE ALADDIN ON HOME VIDEO OCT 1 AND PREDICTED THAT IT WILL BREAK ALL VIDEO SALES RECORDS THE ANIMATED FEATURE IS THE COMPANY'S TOP GROSSING FILM EVER HAVING SOLD MORE THAN 200 MILLION OF TICKETS TO DATE THE VIDEOCASSETTE WILL HAVE A SUGGESTED PRICE OF 2499 DISNEY'S BEAUTY AND THE BEAST HOLDS THE RECORD AS THE BESTSELLING MOVIE ON TAPE HAVING SOLD 20 MILLION UNITS IN JUST TWO MONTHS LAST YEAR DISNEY ALSO SAID REVETA FRANKLIN BOWERS 44 YEARS OLD WAS NAMED A DIRECTOR FILLING THE VACANCY CREATED BY THE DEATH IN FEBRUARY OF SHARON DISNEY LUND WALT DISNEY'S DAUGHTER MS BOWERS IS A LOS ANGELES EDUCATOR 9304270072 930427 ONTARIO REGULATORS ALLEGE INSIDER TRADING IN LAIDLAW STOCK SALE TORONTO THE ONTARIO SECURITIES COMMISSION IS ALLEGING THAT MICHAEL G DEGROOTE USED INSIDE INFORMATION TO SELL SHORT SHARES OF LAIDLAW INC WITHIN MONTHS OF RESIGNING AS A DIRECTOR OF THE TRANSPORTATION AND WASTEMANAGEMENT COMPANY THE COMMISSION'S STAFF ALLEGES IN A FILING THAT MR DEGROOTE MAY HAVE PROFITED BY AS MUCH AS 16 MILLION CANADIAN DOLLARS US127 MILLION AND COVERED UP HIS INVOLVEMENT IN THE SCHEME THE COMMISSION WHICH REGULATES ONTARIO'S SECURITIES INDUSTRY WILL HOLD HEARINGS INTO THE MATTER BEGINNING TOMORROW MR DEGROOTE WAS CHIEF EXECUTIVE OF LAIDLAW BASED IN BURLINGTON ONTARIO UNTIL JUNE 1990 AND A DIRECTOR UNTIL DEC 19 OF THAT YEAR HE IS CURRENTLY CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF REPUBLIC WASTE INDUSTRIES INC AN ATLANTABASED WASTEMANAGEMENT CONCERN UNTIL MAY 1991 MR DEGROOTE WAS A DIRECTOR OF ADT LTD A SUBSIDIARY OF LAIDLAW AN OSC FILING ALLEGES THAT BEFORE THE SHARES WERE SOLD SHORT MR DEGROOTE ALLEGEDLY KNEW SEVERAL UNDISCLOSED FACTS ABOUT THE COMPANY LAIDLAW'S DECEMBER EARNINGS WERE LESS THAN THE COMPANY HAD FORECAST LAIDLAW WAS CONSIDERING LEGAL ACTION OR A PROXY FIGHT AGAINST ADT TO RESOLVE A CORPORATE GOVERNANCE DISPUTE AND LAIDLAW HAD NO IMMEDIATE PLANS TO COMPLETE A SIGNIFICANT ACQUISITION SHORT SELLERS MAKE A PROFIT BY SELLING BORROWED STOCK AND REPLACING IT WHEN THE STOCK'S VALUE DECLINES MR DEGROOTE DIDN'T RETURN PHONE CALLS AND HIS LAWYER DECLINED TO COMMENT BEFORE THE OSC HEARING 9304270071 930427 INTERNATIONAL BRIEF FUJITSU LTD COMPUTER MAKER IS CUTTING COSTS IN ANTICIPATION OF LOSS FUJITSU LTD HAS EMBARKED ON AN EMERGENCY COSTCUTTING PLAN AIMED AT RESTORING CORPORATE PROFITABILITY DURING THE CURRENT FISCAL YEAR THE PROGRAM WILL HAVE FUJITSU DECIDE ON NEW CAPITAL INVESTMENT IN PLANT AND EQUIPMENT ON A CASEBYCASE BASIS A SPOKESWOMAN SAID IT ALSO IS LOOKING AT POSSIBLY SELLING OFF IDLE LAND AND OTHER CAPITAL ASSETS THE COMPANY IS ALSO CURBING HIRING FUJITSU DRASTICALLY CUT ITS CAPITAL OUTLAYS IN THE PAST FISCAL YEAR TO 110 BILLION YEN 9955 MILLION FROM BETWEEN THE 180 BILLION YEN AND 190 BILLION YEN THE TOKYOBASED COMPUTER MAKER HAD BEEN DOLING OUT IN THE LATE 1980S AND EARLY 1990S FUJITSU EXPECTS TO POST AN UNCONSOLIDATED PRETAX LOSS OF 15 BILLION YEN FOR THE FISCAL YEAR ENDED MARCH 31 9304270070 930427 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 ALUMINUM CO OF AMERICA 175 MILLION OF NOTES DUE FEB 15 1996 WERE PRICED AT PAR TO YIELD 4625 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 047 PERCENTAGE POINT ABOVE THE TREASURY THREEYEAR NOTE RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP BORGWARNER SECURITY CORP 150 MILLION OF SENIOR SUBORDINATED NOTES MAY 1 2003 PRICED LATE FRIDAY AS 9 1/8 S AT 99194 TO YIELD 925 ACCORDING TO MCM CORPORATEWATCH THE ISSUE NONCALLABLE FOR FIVE YEARS IS RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH MERRILL LYNCH & CO FEDERAL HOME LOAN BANK 167 MILLION OF DEBENTURES DUE APRIL 30 1996 PRICED AT PAR TO YIELD 435 ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR ONE YEAR THE ISSUE WAS PRICED AT A SPREAD OF 021 PERCENTAGE POINT ABOVE THE TREASURY THREEYEAR NOTE FIRST BANK SYSTEM INC 100 MILLION OF SUBORDINATED NOTES DUE MAY 15 2003 PRICED AS 6 5/8 S AT 99789 TO YIELD 6654 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 075 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO COPELY PHARMACEUTICALS INC12 MILLION COMMON SHARES PRICED AT 36 EACH THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO INACOM CORP 4122190 COMMON SHARES PRICED AT 16 EACH THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC JOHN B SANFILIPPO & SON INC 22 MILLION COMMON SHARES PRICED AT 1425 EACH THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES GOLD 1529 IS BACKED BY FREDDIE MAC GOLD 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2958 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY FIRST BOSTON CORP THE OFFERING SERIES 199383 IS BACKED BY FANNIE MAE'S 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 77 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2975 YEARS DEUTSCHE BANK FINANCE NV CURACAO GERMANY PARENT 2 BILLION FRENCH FRANCS OF 7 EUROBONDS DUE MAY 17 1996 AT ISSUE PRICE 100995 VIA DEUTSCHE BANK SNC REOFFERED AT 9982 TO YIELD 707 MARGIN 20 BASIS POINTS ABOVE FRENCH TREASURY'S 98 DUE 1996 GUARANTOR DEUTSCHE BANK AG FEES 1 3/8 POINTS EUROPEAN COAL AND STEEL COMMUNITY SUPRANATIONAL 15 BILLION FRENCH FRANCS OF 7 EUROBONDS DUE MAY 14 2003 AT ISSUE AND FIXED REOFFER PRICE 97785 VIA BANQUE NATIONAL DE PARIS YIELD AT REOFFER PRICE 732 ANNUAL SPREAD 13 BASIS POINTS ABOVE FRENCH TREASURY'S 85 NOTE DUE 2003 FEES 3/8 POINTS EUROFIMA SUPRANATIONAL 75 MILLION OF 7 1/2 EUROBONDS DUE FEB 5 1998 REOFFERED AT 1005 PLUS 109 DAYS OF ACCRUED INTEREST VIA DAIWA EUROPE LTD YIELD AT REOFFER PRICE 736 MARGIN 20 BASIS POINTS ABOVE 7 1/4 GILT DUE 1998 BONDS WILL TRADE INTERCHANGEABLY WITH 100 MILLION POUNDS OF IDENTICAL OUTSTANDING BONDS LAUNCHED IN FEBRUARY FEES NOT DISCLOSED BANQUE NATIONALE DE PARIS FRANCE 150 BILLION LIRE OF 1085 EUROBONDS DUE MAY 26 2003 AT ISSUE PRICE 10185 VIA BANCA COMMERCIALE ITALIANA YIELD 1088 AT 9985 BREAKEVEN PRICE FOR COMANAGING BANKS FEES 2 POINTS DAIDO STEEL CO JAPAN 20 BILLION YEN OF 48 EUROBONDS DUE AUG 19 1997 AT ISSUE PRICE 101 3/8 VIA YAMAICHI INTERNATIONAL EUROPE LTD REOFFERED AT 10005 TO YIELD 479 FEES 1 5/8 POINTS INTERNATIONALE NEDERLANDEN BANK NV NETHERLANDS 100 MILLION OF SUBORDINATED COLLARED FLOATING RATE EURONOTES DUE MAY 27 2003 AT ISSUE PRICE PAR VIA MORGAN STANLEY INTERNATIONAL LTD INTEREST FLOATS AT 1/4 POINT BELOW LONDON INTERBANK OFFERED RATE FOR US DOLLARS SUBJECT TO MINIMUM 5 3/16 MAXIMUM 8 1/8 FEES 1/2 POINT BANCO BRADESCO SA BRAZIL 50 MILLION OF 9 SEMIANNUAL EUROBONDS DUE NOV 6 1995 REOFFERED AT 100143 VIA DEUTSCHE BANK AG LONDON YIELD 1078 SEMIANNUAL AT REOFFER PRICE MARGIN 495 BASIS POINTS ABOVE TREASURY CURVE FEES 1 POINT FUDO CONSTRUCTION CO JAPAN 100 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE MAY 13 1997 WITH EQUITYPURCHASE WARRANTS CARRYING A 1/2 COUPON AT PAR VIA NIKKO BANK SWITZERLAND EACH 50000 FRANC NOTE CARRIES 50 WARRANTS EXERCISABLE FROM MAY 26 1993 TO APRIL 28 1997 TO BUY COMPANY SHARES TERMS ARE FIXED APRIL 28 FEES TOTAL 1 5/8 POINTS 9304270069 930427 FOOD LION IS FACING 3 SHAREHOLDER SUITS ACCORDING TO PROXY SALISBURY NC FOOD LION INC DISCLOSED THAT THREE SHAREHOLDER SUITS HAVE BEEN FILED AGAINST THE COMPANY ALLEGING THAT FOOD LION CONCEALED OR MISSTATED INFORMATION REGARDING ITS BUSINESS AND OPERATING CONDITIONS ACCORDING TO THE COMPANY'S PROXY RELEASED YESTERDAY THE SUITS WERE FILED AFTER A NATIONAL TELEVISION REPORT LAST NOVEMBER ALLEGED THAT THE GROCERY STORE CHAIN HANDLED FOOD IMPROPERLY FOOD LION HAS DENIED THE ALLEGATIONS THE COMPANY'S STOCK PRICE TUMBLED ABOUT 20 AFTER THE REPORT AND HAS LANGUISHED SINCE IN OVERTHECOUNTER TRADING MONDAY FOOD LION'S CLASS B OR VOTING SHARES CLOSED AT 6 DOWN 25 CENTS WHILE ITS CLASS A SHARES CLOSED AT 6125 UP 125 CENTS ONE OF THE SUITS MAINTAINS THAT FOOD LION'S TOP EXECUTIVES HAD A PLAN TO INFLATE THE MARKET PRICE OF THE COMPANY'S SECURITIES THE SECOND ALLEGES THAT FOOD LION EXECUTIVES MADE MISSTATEMENTS OR OMISSIONS IN CONNECTION WITH PUBLIC COMPANY REPORTS DATING BACK TO SEPTEMBER 1991 THE THIRD CLAIMS FOOD LION'S 1992 PROXY STATEMENT WAS ALSO FALSE AND MISLEADING BECAUSE IT FAILED TO DISCLOSE THE ALLEGEDLY IMPROPER FOOD HANDLING PROCEDURES DOCUMENTED IN THE TELEVISION PROGRAM OFFICIALS AT FOOD LION A UNIT OF DELHAIZE LE LION SA OF BELGIUM DIDN'T RETURN CALLS SEEKING COMMENT ON THE SUITS ALSO DETAILED IN FOOD LION'S 1993 PROXY WAS LAST YEAR'S COMPENSATION FOR TOM E SMITH CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR SMITH 51 YEARS OLD RECEIVED A 20 PAY INCREASE WITH A BASE SALARY OF 628788 PLUS A 282955 BONUS ALTHOUGH FOOD LION'S PROFIT FELL 13 IN 1992 THE DECISION TO RAISE MR SMITH'S BASE SALARY WAS MADE IN DECEMBER 1991 AFTER THE COMPANY REPORTED RECORD EARNINGS OF 205 MILLION ACCORDING TO THE PROXY REGARDING THE BONUS THE COMPANY'S COMPENSATION COMMITTEE ACCORDING TO THE PROXY CONSIDERED MR SMITH'S EFFORTS IN ENGINEERING FOOD LION STORE EXPANSION AND LEADING THE COMPANY THROUGH A DIFFICULT YEAR 9304270068 930423 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 9304270067 930427 WHO'S NEWS BANK OF NEW YORK CO BANK OF NEW YORK CO NEW YORK KEVIN J BANNON 41 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF INVESTMENT OFFICER OF BANK OF NEW YORK THE COMPANY'S PRINCIPAL UNIT SUCCEEDING CHARLES L BOOTH 59 WHO RETIRED MR BANNON HAD BEEN A SENIOR VICE PRESIDENT AND HEAD OF THE PERSONAL INVESTMENT COUNSEL DIVISION AT THE BANK 9304270066 930427 TECHNOLOGY & HEALTH AMERICA ONLINE GETS PHONE DISCOUNTS FROM SPRINT IN RETURN FOR STOCK WARRANT BY LAURENCE HOOPER STAFF REPORTER OF THE WALL STREET JOURNAL AMERICA ONLINE INC SAID IT GOT MAJOR TELECOMMUNICATIONS DISCOUNTS FROM SPRINT CORP THAT WILL LOWER AMERICA ONLINE'S COST OF PROVIDING ITS ONLINE SERVICES TO PERSONALCOMPUTER USERS AS PART OF THE DEAL SPRINT WILL RECEIVE A WARRANT TO BUY 450000 SHARES OF AMERICA ONLINE STOCK ANY TIME WITHIN THE NEXT THREE YEARS THE SHARES FOR WHICH SPRINT WOULD PAY 3125 APIECE WOULD BE NEWLY ISSUED AND AMOUNT TO LESS THAN 6 OF AMERICA ONLINE'S STOCK OUTSTANDING ON A FULLY DILUTED BASIS AMERICA ONLINE'S STOCK FINISHED AT 25 A SHARE UP 75 CENTS IN NATIONAL OVERTHECOUNTER TRADING SEPARATELY SOFTWARE MOGUL PAUL ALLEN BRIEFLY STIRRED SPECULATION THAT AMERICA ONLINE MIGHT BE A TAKEOVER TARGET IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION MR ALLEN SAID HE BOUGHT 72500 AMERICA ONLINE SHARES FOR 29 EACH FRIDAY RAISING HIS STAKE TO 145 MILLION SHARES HE CALCULATED THE NEW STAKE AT 252 SLIGHTLY ABOVE A LEVEL THAT WOULD TRIGGER A NEW ANTITAKEOVER PLAN THAT GIVES OTHER SHAREHOLDERS RIGHTS TO ACQUIRE MORE SHARES DILUTING A RAIDER'S STAKE BUT AMERICA ONLINE OFFICIALS SAID MR ALLEN BASED HIS CALCULATION ON AN OUTOFDATE NUMBER FOR THE COMPANY'S SHARES OUTSTANDING AND SAID THAT HIS STAKE STILL FELL SLIGHTLY BELOW THE 25 THRESHOLD MR ALLEN'S FINANCIAL ADVISER WILLIAM SAVOY SUBSEQUENTLY SAID THERE WAS A DIFFERENT ERROR IN THE SEC FILING MR ALLEN HAD ACTUALLY BOUGHT 52500 SHARES NOT 72500 PUTTING HIS STAKE AT 143 MILLION SHARES AND CLEARLY UNDER 25 HE HAD VERY EXPLICITLY MEANT NOT TO GO OVER 25 SAID MR SAVOY ACCEPTING BLAME FOR THE TYPO I WAS OUT FRIDAY WHEN THE FORM WAS FILED HE EXPLAINED MR SAVOY ADDED THAT MR ALLEN HAS NO PLAN TO SEEK A SEAT ON AMERICA ONLINE'S BOARD OR OTHERWISE INCREASE HIS INFLUENCE HE BOOSTED HIS STAKE FROM ABOUT 13 OVER THE PAST WEEK BECAUSE OF A MARKET OPPORTUNITY MR SAVOY SAID MR ALLEN IS A COFOUNDER AND MAJOR SHAREHOLDER OF MICROSOFT CORP THE SOFTWARE GIANT AND CHAIRMAN OF ASYMETRIX INC A SMALLER SOFTWARE CONCERN ALSO YESTERDAY AMERICA ONLINE POSTED PROFIT OF 109 MILLION OR 16 CENTS A SHARE FOR ITS THIRD QUARTER ENDED MARCH 31 THAT IS UP ABOUT 19 FROM 918000 OR 16 CENTS A SHARE A YEAR EARLIER ABOUT 15 FEWER SHARES WERE OUTSTANDING IN THE 1992 QUARTER BOTH PERIODS INCLUDED ONETIME TAX BENEFITS EXCLUDING THOSE GAINS AMERICA ONLINE SAID PROFIT ROSE 52 TO 867000 OR 13 CENTS A SHARE FROM 569000 OR 10 CENTS A SHARE REVENUE ROSE ABOUT 50 TO 105 MILLION FROM 701 MILLION AND AMERICA ONLINE SAID ITS PRESIDENT STEVE CASE 34 YEARS OLD WAS ELECTED CHIEF EXECUTIVE OFFICER SUCCEEDING JAMES KIMSEY MR KIMSEY 53 WILL REMAIN CHAIRMAN OF THE VIENNA VA COMPANY THE DEAL WITH SPRINT KANSAS CITY MO REPRESENTS A DEEPENING OF A PREVIOUS RELATIONSHIP SPRINT IS ONE OF TWO TELECOMMUNICATIONS COMPANIES THAT CARRY COMPUTER DATA ALONG THE BACKBONE OF AMERICA ONLINE'S NETWORK THE OTHER IS TYMNET OWNED BY BRITISH TELECOMMUNICATIONS PLC LOWER CHARGES TO AMERICA ONLINE SPRINT SAID ENABLE AMERICA ONLINE IN TURN TO LOWER ITS PRICES LEADING TO MORE CUSTOMERS AND HEAVIER USE OF SPRINT'S LONGDISTANCE LINES IN THEORY AT LEAST AMERICA ONLINE WHICH IS PURSUING AN AGGRESSIVE GROWTH STRATEGY LOWERED ITS PRICES LAST WEEK THE TWO COMPANIES SAID THEY WOULD ALSO WORK TO DEVELOP JOINT MARKETING PROJECTS 9304270065 930427 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE EUROPEAN COMMUNITY COMMISSION BOOSTED BY 75 ITS SPENDING ON FIGHTING FRAUD SUCH AS EVASION OF DUTIES ON OLIVE OIL EXPORTS AND VIDEOCASSETTE IMPORTS THE EC'S ANNUAL REPORT ON FRAUD SAID CASES REPORTED LAST YEAR JUMPED 52 TO 1850 FROM A YEAR EARLIER THOUGH THE FUNDS INVOLVED 2699 MILLION EUROPEAN CURRENCY UNITS 3328 MILLION WERE ABOUT THE SAME THE CASES MAINLY INVOLVED ILLEGAL FARM SUBSIDIES AND AVOIDANCE OF DUTIES ON GOODS MOVING INTO AND OUT OF THE EC BUT MANY CASES ARE NEVER DISCOVERED PARTLY BECAUSE THE EC ANTIFRAUD UNIT IS UNDERSTAFFED IN THE SINGLE MARKET PREVIOUS ESTIMATES OF FRAUD RUN TO BILLIONS OF ECUS A YEAR THE EC INCREASED ITS ANTIFRAUD BUDGET TO 1332 MILLION ECUS THIS YEAR AND WILL STEP UP DETECTION EFFORTS THROUGH USE OF SATELLITES AND OTHER SOPHISTICATED METHODS ENFORCEMENT WILL FOCUS ON POLICING COMPENSATION PAYMENTS TO FARMERS WESTERN GERMAN CONSUMER CONFIDENCE FELL TO A RECORD LOW LAST MONTH AN INDEX COMPILED BY THE GFK INSTITUTE FELL 13 POINTS FROM FEBRUARY TO 755 OFF 8 POINTS FROM A YEAR AGO AND THE LOWEST SINCE THE SURVEY BEGAN AT 100 POINTS IN 1980 THE DROP ALSO WAS THE LARGEST SINCE A 19POINT PLUNGE IN JANUARY IN FEBRUARY THE INDEX SLIPPED 02 POINT GFK ATTRIBUTED THE PESSIMISM TO INCREASED PRICES RENTS AND UNEMPLOYMENT AND SHORTENED WORK SHIFTS CHINA WHICH HAS HAD TIGHT RESTRICTIONS ON SENDING HARD CURRENCY ABROAD MOVED TO ALLOW INDIVIDUALS TO BUY AND SELL FOREIGN CURRENCIES LEGALLY FINANCIAL INSTITUTIONS WILL BE DESIGNATED AS CURRENCY DEALERSHIPS TO SERVE GROWING NUMBERS OF CHINESE DOING BUSINESS INVESTING AND TOURING ABROAD PREVIOUSLY CHINESE WHO OBTAINED FOREIGN CURRENCIES COULD ONLY PUT THE CASH IN DOMESTIC BANK ACCOUNTS AND WERE LIMITED TO LESS THAN 100 OF FOREIGN MONEY FOR AUTHORIZED TRAVEL ABROAD INDIVIDUALS' FOREIGNCURRENCY SAVINGS TOTAL 10 BILLION THE BRITISH ECONOMY GREW SLIGHTLY IN THE FIRST QUARTER SIGNALING THE POSSIBLE END OF THE INDUSTRIALIZED WORLD'S LONGESTRUNNING RECESSION AFTER 2 1/2 YEARS OF DECLINE GROSS DOMESTIC PRODUCT EDGED UP 02 WHAT THE FIGURES SHOW IS THAT WE'VE GOT RECOVERY ACROSS A VERY BROAD PART OF THE ECONOMY SAID CHANCELLOR OF THE EXCHEQUER NORMAN LAMONT BUT THE UPTICK WAS SMALLER THAN ANTICIPATED AND CRITICS OF THE GOVERNMENT ARGUE THAT THE RECOVERY IS DUE NOT TO OFFICIAL ECONOMIC POLICIES BUT TO THE FORCED DEVALUATION OF THE POUND LAST YEAR MAKING EXPORTS CHEAPER GERMANY'S MONOPOLY PHONE COMPANY PLANS TO RESPOND TO FOREIGN COMPETITION BY REDUCING RATES FOR LONGDISTANCE CALLS IN 1995 OR LATER BUT DEUTSCHE BUNDESPOST TELEKOM ALSO INTENDS TO RAISE RATES FOR LOCAL CALLS TO REFLECT THEIR COSTS MORE CLOSELY AND TO NARROW THE DIFFERENCE BETWEEN LOCAL AND LONGDISTANCE CHARGES AND TO HELP FUND THE REDUCTION IN TOLL CALLS A DECISION ON A NEW RATE STRUCTURE HASN'T BEEN MADE BUSINESS HAS COMPLAINED THAT LONGDISTANCE RATES ARE TOO EXPENSIVE WHICH THE GOVERNMENT ACKNOWLEDGES MEAT WORKERS IN DENMARK BEGAN A WORK STOPPAGE THAT WILL HURT THE COUNTRY'S BIGGEST AGRICULTURAL EXPORT PORK ABOUT 16000 BUTCHERS AND SLAUGHTERHOUSE EMPLOYEES ARE PROTESTING CHANGES IN WORKING HOURS THE STRIKE IS EXPECTED TO COST FARMERS AND SLAUGHTERHOUSES 500 MILLION KRONER 82 MILLION IN LOST EXPORTS A WEEK PORK REPRESENTS 43 OF DENMARK'S FARM EXPORTS AND 86 OF TOTAL SHIPMENTS DENMARK SOLD 203 BILLION KRONER OF PORK LAST YEAR MOSTLY TO BRITAIN GERMANY AND JAPAN ABOUT 1000 TRUCK DRIVERS ALSO WERE IDLED THE RECOMMENDATION SOURCES SAID IS EXPECTED TO BE ENDORSED BY THE EC COMMISSION SENDING IT TO MEMBER STATES FOR ACTION EARLY NEXT MONTH THE EKO RESTRUCTURING PLAN WHICH WOULD CUT 1500 JOBS CALLS FOR REDUCING CRUDE STEEL CAPACITY BUT ALLOWING NEW CAPACITY OF 865000 TONS A YEAR IN A FINISHED PRODUCT HOT WIDE STRIPS THE BOOST TROUBLES THE COMPETITION COMMISSIONER KAREL VAN MIERT AS THE EC STEEL INDUSTRY IS DRAWING UP PLANS TO CUT GROSS OVERCAPACITY WESTERN GERMAN STEELMAKERS OPPOSE BOOSTING EKO'S CAPACITY FEARING IT WOULD GIVE OTHER EC MEMBERS AMMUNITION IN THEIR BATTLE TO MAINTAIN STEEL SUBSIDIES BUT MR VAN MIERT BACKED APPROVING 177 MILLION ECUS IN STATE AID FOR RESTRUCTURING THE FREITAL STEEL PLANT IN EASTERN GERMANY THIS PLAN CALLS FOR REDUCING PRODUCTION OF CRUDE AND HOTROLLED FINISHED PRODUCTS AND ELIMINATING 1000 JOBS FRENCHSPEAKING QUEBEC'S RULING PARTY PROPOSED LIFTING A 15YEAR BAN ON ENGLISH SIGNS AFTER A UNITED NATIONS PANEL DENOUNCED THE RESTRICTION AS A HUMAN RIGHTS VIOLATION THE PROPOSAL GOES TO THE CANADIAN PROVINCE'S LEGISLATURE THE FIRST PERSON IN CHINA CONVICTED OF EMBEZZLING BANK FUNDS BY COMPUTER HAS BEEN EXECUTED AUTHORITIES SAID SHI BIAO AN ACCOUNTANT AT THE JILIN BRANCH OF THE STATERUN AGRICULTURAL BANK OF CHINA SIPHONED MORE THAN 175000 TO PRIVATE ACCOUNTS 9304270064 930427 HEARD ON THE STREET STONE CONTAINER AFTER REBOUNDING RECENTLY MAY HAVE FURTHER TO FALL BECAUSE OF DEBT LOAD BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AFTER STONE CONTAINER'S STOCK PLUNGED 55 EARLY THIS MONTH BARGAIN HUNTERS SCOOPED UP THE STOCK PROMPTING A SHARP REBOUND BUT THESE GUTSY INVESTORS WHO HAVE PUSHED THE STOCK UP 30 TO YESTERDAY'S CLOSE OF 8 1/4 MAY REGRET THEIR SHOPPING SPREE AN INCREASING NUMBER OF ANALYSTS WARN THAT BUYERS OF THE HEAVILY INDEBTED CONTAINERBOARD COMPANY'S STOCK MAY NOT BE SEEING THE FOREST FOR THE TREES WHAT BEAT THE STOCK TO A PULP WAS THE COMPANY'S DISCLOSURE APRIL 1 THAT IT WANTED TO RAISE 500 MILLION BY SELLING MILLIONS OF NEW SHARES WHICH WOULD HAVE SUBSTANTIALLY DILUTED THE 71 MILLION SHARES OUTSTANDING DURING THE NEXT EIGHT DAYS THE STOCK CRUMPLED FROM 14 TO 6 3/8 ITS LOWEST LEVEL IN TWO YEARS THE MARKET REACTION FORCED THE COMPANY TO POSTPONE ANY ATTEMPT TO SELL STOCK SOON DESPITE THE STOCK'S REBOUND ANALYSTS HAVE GROWN INCREASINGLY PESSIMISTIC SEVERAL HAVE RECENTLY LOWERED THEIR EARNINGS ESTIMATES ACCORDING TO FIRST CALL WHICH TRACKS ANALYSTS' PREDICTIONS FIRST CALL'S CONSENSUS OF 17 EARNINGS ESTIMATES NOW FORECASTS A 236 LOSS PER SHARE FOR 1993 MEANWHILE THE OUTLOOK FOR THE PAPER AND PACKAGING INDUSTRY WHICH HAS BEEN IN A THREEYEAR SLUMP CONTINUES TO GET GLOOMIER THERE ARE NO SIGNS THAT PRICES FOR CONTAINERBOARD AND CORRUGATED CONTAINERS FULLY TWOTHIRDS OF STONE'S EARNINGS IN GOOD TIMES WILL RECOVER BEFORE THE END OF THE YEAR THE RESULT CASH FLOW SAGGED TO 570 MILLION LAST YEAR THAT WAS 170 MILLION LESS THAN THE COMPANY NEEDED TO COVER INTEREST PAYMENTS CAPITAL EXPENDITURES AND OTHER FIXED COSTS ANALYSTS EXPECT THE SHORTFALL TO BE EVEN GREATER THIS YEAR THE LENGTHENING RECESSION IN THE PAPER INDUSTRY MEANS THE SQUEEZE ON STONE'S CASH CAN'T HELP BUT GET WORSE IN RESPONSE THE COMPANY HAS ALREADY TRIMMED BACK CAPITAL EXPENDITURES TO 235 MILLION IN 1992 FROM 552 MILLION IN 1990 MOST ANALYSTS BELIEVE STONE CAN'T AFFORD FURTHER SIGNIFICANT CUTBACKS IN CAPITAL SPENDING NOW THAT A STOCK SALE IS NO LONGER AN OPTION STONE'S NEXT TACK IS ASSET SALES POSSIBILITIES INCLUDE SELLING THE WOOD PRODUCTS BUSINESS AND PLANTS THAT MAKE SPECIALTY BAGS AND FLEXIBLE PACKAGING THE COMPANY ALSO IS CONTEMPLATING SELLING A MINORITY INTEREST IN ITS CANADIAN OPERATIONS WE CLEARLY HAVE NONCORE BUSINESSES THAT WE WOULD SELL AT AN ATTRACTIVE PRICE SAID STONE'S CHIEF FINANCIAL OFFICER ARNOLD F BROOKSTONE ASSET SALES AREN'T LIKELY BEFORE MAY 31 THE DEADLINE FOR RAISING FUNDS THAT STONE NEGOTIATED WITH ITS 109 BANKS IN DECEMBER BACK THEN THE BANKS AGREED TO WAIVE CERTAIN BANK DEBT COVENANTS IN ANTICIPATION OF THE STOCK OFFERING THAT MEANS STONE WILL HAVE TO BORROW TO MAKE BANK PAYMENTS THIS YEAR UNLESS IT CAN PERSUADE THE BANKS TO RENEGOTIATE THE DEBT THE BANKS WILL BE LENDING MONEY TO PAY THEMSELVES BACK PREDICTED NELSON NOEL WHO COVERS STONE FOR MOODY'S INVESTORS SERVICE LAST FRIDAY MOODY'S PLACED MORE THAN 22 BILLION OF STONE'S UNSECURED AND SUBORDINATED DEBT ON REVIEW FOR POSSIBLE DOWNGRADE SOME ANALYSTS FEEL A REORGANIZATION IN OR OUT OF BANKRUPTCY COURT IS LIKELY IN FACT MANY SHORT SELLERS ARE BETTING THAT STONE'S STOCK PRICE WILL DROP IN A SHORT SALE INVESTORS BORROW STOCK AND SELL IT HOPING TO BE ABLE TO BUY IT BACK LATER AT A LOWER PRICE THE NUMBER OF STONE SHARES SOLD SHORT DROPPED LAST MONTH TO ABOUT TWO MILLION FROM 33 MILLION AS SHORT SELLERS BOUGHT BACK STOCK AS THE SHARE PRICE SANK INDEED THAT BUYING MAY ACCOUNT FOR PART OF THE STOCK'S REBOUND THE ANALYSTS WHO TRACK THE COMPANY'S HIGHYIELD JUNK BONDS ALSO ARE WORRIED I LOOK AT HOW MUCH MONEY THEY HAVE TO RAISE AND I FEEL GOSH I DON'T KNOW HOW YOU GET THERE FROM HERE SAID SHARYL VAN WINKLE A MERRILL LYNCH ANALYST THE BONDS HAVE BEEN BOUNCING AROUND SHARPLY IN PRICE LIKE THE STOCK THEY RECENTLY REGAINED SOME GROUND BUT EVEN YIELDS AS HIGH AS 1458 ON THE SENIOR SUBORDINATED 11 1/2 NOTES DUE IN 1999 AND 1382 ON THE SENIOR SUBORDINATED 1075 DEBENTURES OF 2002 AREN'T ENOUGH TO ENTICE SOME YIELDHUNGRY MUTUAL FUNDS WE'VE LOOKED AT THEM AND DECIDED TO STAY AWAY SAID DON KELLER WHO MANAGES JUNK BOND FUNDS FOR KEYSTONE OF COURSE NOT EVERYONE AGREES CHIP DILLON OF SALOMON BROTHERS RECENTLY RAISED STONE'S STOCK TO A BUY HE BELIEVES IF THE COMPANY CAN PULL OFF THE COMBINATION OF ASSET SALES AND AN EVENTUAL STOCK SALE AND PAPER PRICES RECOVER NEXT YEAR THE STOCK COULD TRIPLE IT'S HARD TO IMAGINE THE CYCLE LASTING MUCH LONGER HE SAID 9304270063 930427 BUSINESS BRIEF AIRBORNE FREIGHT CORP GROWTH ACCOUNTING RULES BOOSTED FIRSTQUARTER PROFIT AIRBORNE FREIGHT CORP BOOSTED BY A PICKUP IN ITS DOMESTIC BUSINESS AS WELL AS ACCOUNTING CHANGES SAID ITS NET INCOME ROSE TO 75 MILLION OR 35 CENTS A SHARE IN THE FIRST QUARTER THE RESULTS COMPARE WITH EARNINGS OF 11 MILLION OR TWO CENTS A SHARE IN TH YEAREARLIER PERIOD REVENUE FOR THE SEATTLE AIRFREIGHT CONCERN INCREASED 11 TO 3988 MILLION FROM 3599 MILLION THE ACCOUNTING CHANGES RELATED TO INCOME TAXES AND POSTRETIREMENT BENEFITS ADDED 38 MILLION OR 20 CENTS A SHARE TO THE MOST RECENT QUARTER'S PROFITS EXCLUDING THE CHANGE THE COMPANY REPORTED NET OF 36 MILLION OR 15 CENTS A SHARE IN LINE WITH ANALYSTS' ESTIMATES AIRBORNE'S STOCK FELL 250 TO 21 IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE DOMESTIC REVENUE WHICH ACCOUNTS FOR THE BULK OF AIRBORNE'S BUSINESS GREW BY 135 IN THE QUARTER FROM A YEAR AGO WHILE REVENUE FROM INTERNATIONAL BUSINESS FELL 5 DUE TO WEAK ECONOMIC CONDITIONS IN EUROPE AND JAPAN THE COMPANY SAID ROY LILJEBECK CHIEF FINANCIAL OFFICER SAID THE STRENGTHENING DOMESTIC MARKET SHOULD PRODUCE BETTER RESULTS IN THE COMING QUARTERS AIRBORNE DECLARED A QUARTERLY DIVIDEND OF 7 1/2 CENTS A SHARE PAYABLE MAY 24 TO STOCK OF RECORD MAY 10 9304270062 930427 BUSINESS BRIEF AMERICAN EXPRESS CO GOLUB PUTS A TIME FRAME ON SALE OF LEHMAN BROTHERS AMERICAN EXPRESS CO CHIEF EXECUTIVE HARVEY GOLUB INDICATED AT THE COMPANY'S ANNUAL MEETING THAT WITHIN A YEAR OR SO ITS LEHMAN BROTHERS SUBSIDIARY COULD BE READY FOR A POSSIBLE SALE MANY INSIDERS AND OBSERVERS EXPECT THE COMPANY TO BE SPUN OFF OR SOLD ONCE LEHMAN CAN SUPPORT A SINGLEA DEBT RATING WITHOUT THE SUPPORT OF ITS PARENT RIGHT NOW IT IS A SINGLEA CREDIT WITH THE SUPPORT OF AMERICAN EXPRESS BEHIND IT AMERICAN EXPRESS BASED IN NEW YORK IS A TRAVEL AND FINANCIALSERVICES COMPANY LAST WEEK AMERICAN EXPRESS FOR THE FIRST TIME BROKE OUT LEHMAN'S EARNINGS FROM ITS SHEARSON LEHMAN PARENT LEHMAN REPORTED FIRSTQUARTER EARNINGS OF 55 MILLION ON THE STRENGTH OF AN 18 INCREASE IN REVENUE AS THE FIRM'S FIXEDINCOME BUSINESS AND HIGHER FOREIGN EXCHANGE AND DERIVATIVES OPERATIONS LED THE WAY THE RESULTS WERE ALSO WEIGHED DOWN BY COSTS THAT WILL FALL AS A RESULT OF THE SALE OF BUSINESSES 9304270061 930427 CONVEX HEWLETTPACKARD SET TO BEGIN SWAPPING SOFTWARE FOR SUPERCOMPUTERS BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL RICHARDSON TEXAS CONVEX COMPUTER CORP AND HEWLETTPACKARD CO EXPANDING ON A YEAROLD ALLIANCE ARE TO ANNOUNCE TODAY A SOFTWARESWAPPING AGREEMENT AIMED AT BOOSTING THE MARKET FOR LEADINGEDGE SUPERCOMPUTERS UNDER TERMS OF THE DEAL HP WILL LICENSE ITS UNIXBASED UX OPERATING SYSTEM TO CONVEX WHICH PLANS TO USE THE SOFTWARE IN A NEW FAMILY OF MULTIPROCESSOR SUPERCOMPUTERS DUE OUT NEXT YEAR CONVEX IN TURN WILL PROVIDE HP WITH SOFTWARE THAT WILL ENABLE PROGRAMS NOW RUNNING ON HP WORKSTATIONS TO WORK ON CONVEX'S MOST ADVANCED MACHINES THE PACT FIRST HATCHED WHEN HP BOUGHT A 5 STAKE IN CONVEX LAST MARCH IS DESIGNED TO JUMPSTART THE MARKET FOR SOCALLED MASSIVELY PARALLEL SUPERCOMPUTERS WHICH SPEED UP CALCULATIONS BY STRINGING TOGETHER AS MANY AS TENS OF THOUSANDS OF CHIPS THOUGH MASSIVELY PARALLEL MACHINES HAVE LONG BEEN HAILED AS THE NEXT HOT TREND IN SUPERCOMPUTING THE MARKET FOR THE COMPUTERS HAS STALLED INTERNATIONAL DATA CORP A FRAMINGHAM MASS RESEARCH FIRM ESTIMATES THAT ONLY 463 MASSIVELY PARALLEL SYSTEMS WERE SOLD LAST YEAR AND MOST OF THOSE WERE LOWPRICED VERSIONS WITH RELATIVELY FEW PROCESSORS THE PROBLEM ACCORDING TO ANALYSTS HAS BEEN A DEARTH OF SOFTWARE TO RUN ON THE MACHINES CURRENTLY ONLY ABOUT TWO DOZEN APPLICATIONS RUN ON MASSIVELY PARALLEL SUPERCOMPUTERS AND ONLY A HANDFUL OF THOSE HAVE GAINED WIDESPREAD ACCEPTANCE EXPERTS SAY SOFTWARE DEVELOPERS ARE HESITANT TO WRITE APPLICATIONS FOR A MARKET BADLY SPLINTERED BY COMPETING STANDARDS AND PLAGUED BY SHRINKING GOVERNMENT COMPUTING BUDGETS IF THE DEAL BETWEEN HP AND CONVEX PANS OUT THE 4000 SOFTWARE TITLES NOW AVAILABLE ON HP WORKSTATIONS WILL BE EASILY TRANSFERRED TO CONVEX'S NEW MACHINES ESSENTIALLY WIPING OUT THE SOFTWARE SHORTAGE ANALYSTS SEE THE AGREEMENT AS A MARKETING TOOL FOR CONVEX AS IT SEEKS TO PERSUADE USERS TO DELAY PURCHASING A SUPERCOMPUTER UNTIL ITS OWN MASSIVELY PARALLEL COMPUTER COMES OUT NEXT SPRING THE CONVEX MACHINE WILL COMPETE AGAINST SIMILAR SYSTEMS ALREADY AVAILABLE FROM INTEL CORP THINKING MACHINES CORP AND CRAY RESEARCH INC AMONG OTHERS THE ISSUE WITH MASSIVELY PARALLEL IS THAT NO ONE HAS BEEN ABLE TO CREATE A SIGNPOST A STANDARD THAT SOFTWARE PEOPLE CAN WRITE TO SAID CRAIG SULTAN A SUPERCOMPUTER ANALYST AT MONTGOMERY SECURITIES IN SAN FRANCISCO HP AND CONVEX WANT TO HOLD THEIR SIGN UP A LITTLE HIGHER AND PUT SOME NEON LIGHTS ON IT AS FOR HEWLETTPACKARD OFFICIALS SAY THE CONVEX DEAL ESSENTIALLY EXTENDS THE PALO ALTO CALIF COMPANY'S PRODUCT LINE INTO SUPERCOMPUTERS SINCE SOFTWARE THAT RUNS ON ITS WORKSTATIONS ULTIMATELY WILL WORK ON THE CONVEX MACHINES HP HAS IN RECENT MONTHS BEEN AT THE CENTER OF AN AGGRESSIVE BATTLE TO WOO COMPUTER USERS TO CHIPS USING REDUCED INSTRUCTION SET COMPUTING OR RISC HP LIKE ITS RIVAL SUN MICROSYSTEMS INC IS TRYING TO TURN ITS RISC CHIP INTO THE DE FACTO STANDARD FOR A RANGE OF MACHINES INCLUDING SUPERCOMPUTERS SOME ANALYSTS THOUGH QUESTION HOW EASY THE SOFTWARE TRANSITION WILL BE THE EXTENSION OF EXISTING SOFTWARE INTO SUPERCOMPUTERS HAS AFTER ALL BEEN THE BIGGEST ROADBLOCK FOR VENDORS OF THE MACHINES AND ANALYSTS NOW SAY THEY NEED MORE PROOF BEFORE THEY'LL BE CONVINCED CONVEX AND HP HAVE CRACKED THE CODE IN THE HIGHPERFORMANCE COMPUTING REALM NOTHING WORKS ON AUTO PILOT SAYS GARY SMABY A MINNESOTABASED SUPERCOMPUTER CONSULTANT 9304270060 930427 BOEING'S CHIEF FORGOES RAISE AMID CUTBACKS JET MAKER'S 1STQUARTER NET TOTALS 325 MILLION RESULTS FOR '92 RESTATED BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL SEATTLE BOEING CO CHAIRMAN FRANK SHRONTZ SAID HE IS DECLINING ANY INCREASE IN HIS 821361 SALARY TO SHARE A LITTLE BIT IN THE IMPACT OF SWEEPING PRODUCTION CUTS AND LAYOFFS AT THE AEROSPACE COMPANY AT ITS ANNUAL MEETING BOEING ALSO REPORTED FIRSTQUARTER NET INCOME OF 325 MILLION OR 96 CENTS A SHARE A 23 DECLINE FROM EARNINGS BEFORE THE EFFECT OF AN ACCOUNTING CHANGE IN THE 1992 QUARTER THE DISCLOSURE ABOUT THE CHAIRMAN'S SALARY FREEZE CAME AFTER A COMPANY ENGINEER MADE A PLEA AT THE MEETING FOR SENIOR OFFICERS TO CURB INCREASES IN SALARY BONUSES AND STOCK OPTIONS AT A TIME WHEN THE COMPANY IS EXPERIENCING WIDESPREAD LAYOFFS STILL MR SHRONTZ SAID AFTER THE MEETING HE HASN'T DISCUSSED WITH DIRECTORS WHETHER HIS BONUS AND OTHER COMPENSATION ALSO WILL BE FROZEN IN ADDITION TO THE 821361 SALARY IN 1992 A 23 INCREASE FROM THE PREVIOUS YEAR'S 668966 HE RECEIVED A 554000 BONUS AND 59511 IN OTHER COMPENSATION PLUS RESTRICTED STOCK AND STOCK OPTIONS BOEING'S NET INCOME COMPARED WITH A RESTATED NET LOSS OF 582 MILLION OR 171 A SHARE THAT INCLUDED THE CUMULATIVE EFFECT OF AN ACCOUNTING CHANGE FOR RETIREE HEALTH CARE BENEFITS BEFORE THE ACCOUNTING ADJUSTMENT RESTATED EARNINGS FOR THE 1992 QUARTER WERE 420 MILLION OR 123 A SHARE SALES FOR THE QUARTER FELL 17 TO 664 BILLION FROM 797 BILLION A YEAR EARLIER BOEING PROJECTED 1993 SALES IN THE 26 BILLION RANGE DOWN FROM THE 3018 BILLION IN SALES FOR ALL OF 1992 IT SAID SALES IN THE CURRENT QUARTER ARE EXPECTED TO BE SOMEWHAT HIGHER THAN FIRSTQUARTER SALES BECAUSE OF THE TIMING OF COMMERCIAL JET DELIVERIES MR SHRONTZ SAID HE BELIEVES THE COMPANY IS DOING WELL IN THE SOFT WORLD JETLINER SALES ENVIRONMENT ALTHOUGH 1993 WILL NOT BE AS A GOOD A YEAR AS WE HAD LAST YEAR IN EARNINGS AND SALES BEFORE THE EFFECT OF THE ACCOUNTING CHANGE IN 1992 BOEING'S INCOME WAS 155 BILLION OR 457 A SHARE NET INCOME WAS 552 MILLION OR 162 A SHARE THE FIRSTQUARTER RESULTS WERE IN LINE WITH ANALYST PROJECTIONS BOEING'S STOCK SLIPPED 625 CENTS TO CLOSE AT 37375 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING MR SHRONTZ'S DECISION TO FREEZE HIS SALARY WAS FIRST MENTIONED BY GEORGE M KELLER THE RETIRED CHEVRON CORP CHAIRMAN WHO HEADS THE COMPENSATION COMMITTEE OF BOEING'S BOARD MR KELLER WAS ASKED TO RESPOND TO THE COMPANY ENGINEER'S QUESTION BOEING THIS YEAR ANNOUNCED PLANS FOR 27000 JOB CUTS THROUGH MID1994 AS PART OF PART OF A PLAN TO CUT PRODUCTION BY 35 IN RESPONSE TO WEAK JETLINER MARKETS MOST JOB CUTS WILL COME THROUGH LAYOFFS MR SHRONTZ SAID IN REMARKS AFTER THE MEETING MR SHRONTZ ALSO SAID IN RESPONSE TO A SHAREHOLDER QUESTION THAT THE COMPANY HAS INVITED LOCKHEED CORP TO PARTICIPATE AT SOME POINT IN POTENTIAL DEVELOPMENT OF A NEW SUPERJUMBO JETLINER BOEING IS JOINTLY STUDYING THE MARKET FOR THE JET WHICH WOULD CARRY 550 TO 800 PASSENGERS BY ABOUT THE TURN OF THE CENTURY WITH FOUR EUROPEAN COMPANIES THAT ARE PARTNERS IN THE AIRBUS INDUSTRIE CONSORTIUM BOEING HAD ALREADY CONFIRMED THAT IT INVITED US RIVAL MCDONNELL DOUGLAS CORP TO PARTICIPATE MR SHRONTZ SAID NEITHER LOCKHEED OR MCDONNELL HAS RESPONDED FORMALLY TO THE OFFERS BOEING OFFICIALS ALSO HAVE RAISED THE PROSPECT OF EVENTUAL PARTICIPATION BY JAPANESE COMPANIES BUT A BOEING SPOKESMAN SAID COMPANY OFFICIALS WERE PUZZLED AT NEWS REPORTS IN JAPAN THAT SPECIFIC JAPANESE COMPANIES WOULD PARTICIPATE IN THE STUDY NO SUCH AGREEMENTS HAVE BEEN REACHED HE SAID BOEING PRESIDENT PHILIP CONDIT TOLD SHAREHOLDERS THAT THE COMPANY IS STUDYING A THIRD VERSION OF ITS ADVANCED 777 JETLINER THAT WOULD OFFER A 20 INCREASE IN CAPACITY OVER TWO EARLY VERSIONS ALREADY ANNOUNCED THE NEW VERSION WOULD BE AVAILABLE IN 1998 THE FIRST VERSION OF THE ADVANCED TWINENGINE JET IS SCHEDULED FOR INITIAL DELIVERIES IN 1995 EARLY VERSIONS WILL SEAT 375 TO 400 PASSENGERS 9304270059 930427 CIRCA FORMERLY BOLAR SAYS FDA'S SANCTIONS HAVE BEEN REMOVED COPIAGUE NY CIRCA PHARMACEUTICALS INC FORMERLY BOLAR PHARMACEUTICAL CO SAID THE FOOD AND DRUG ADMINISTRATION HAS LIFTED ITS REGULATORY RESTRICTIONS ON THE COMPANY AN FDA SPOKESWOMAN CONFIRMED THAT THE AGENCY SENT CIRCA A LETTER DATED APRIL 20 INDICATING THAT IT BELIEVES THE GENERICDRUG MAKER HAS TAKEN SUFFICIENT PRECAUTIONS TO PRECLUDE WRONGFUL ACTS AND NONCOMPLIANCE WITH REGULATORY REQUIREMENTS THIS NOW ALLOWS US TO FILE APPLICATIONS WITH THE AGENCY WITHOUT RESTRICTIONS SAID DR MELVIN SHAROKY PRESIDENT AND CHIEF EXECUTIVE OFFICER PROJECTS IN OUR RESEARCH AND DEVELOPMENT AREA CAN PROCEED AND A TIMELY REVIEW OF OUR APPLICATIONS CAN BE EXPECTED HE ADDED IN LAY TERMS IT'S A SECOND CHANCE THE FDA HAS HELD UP REVIEW OF THE COMPANY'S EXISTING DRUGMARKETING APPLICATIONS SINCE THE COMPANY'S PROBLEMS SURFACED IN 1989 THE FEDERAL GOVERNMENT CHARGED THE COMPANY WHICH JUST RECENTLY CHANGED ITS NAME AND SOME FORMER OFFICIALS WITH NUMEROUS ILLEGAL ACTS IN MAKING AND SELLING GENERICEQUIVALENT DRUGS BOLAR ALSO WAS SUED BY SHAREHOLDERS AND BY A MAKER OF BRANDNAME DRUGS THE COMPANY HAS ALREADY PAID FEDERAL FINES AND SETTLED THE CIVIL CASES AGAINST IT SEVERAL FORMER OFFICIALS HAVE PLEADED GUILTY AND HAVE BEEN SENTENCED FOR THEIR ROLES IN THE GENERICDRUG SCANDAL 9304270058 930427 BUSINESS BRIEF SYMANTEC CORP LOSS OF 14 MILLION POSTED FOR FISCAL FOURTH QUARTER SYMANTEC CORP SAID IT HAD A LOSS OF 14 MILLION OR SIX CENTS A SHARE IN THE FOURTH QUARTER ENDED MARCH 31 THE CUPERTINO CALIF SOFTWARE CONCERN HAD NET INCOME OF 55 MILLION OR 22 CENTS A SHARE A YEAR AGO REVENUE FELL 188 TO 513 MILLION FROM 632 MILLION COMPANY OFFICIALS SAID REVENUE DECLINED BECAUSE THE YEARAGO QUARTER WAS BOOSTED BY SALES OF ANTIVIRUS PRODUCTS TO COMBAT THE SOCALLED MICHELANGELO VIRUS THAT WAS PLAGUING THE NATION'S COMPUTER SYSTEMS EXPENSES WERE HIGH DURING THE MOST RECENT QUARTER BECAUSE THE COMPANY IS DEVELOPING UTILITY AND DEVELOPMENT TOOLS PRODUCTS SAID ROBERT RB DYKES EXECUTIVE VICE PRESIDENT OF WORLDWIDE OPERATIONS AND CHIEF FINANCIAL OFFICER SYMANTEC STOCK FELL 125 CENTS CLOSING AT 1275 IN NATIONAL OVERTHECOUNTER TRADING FOR THE FISCAL YEAR SYMANTEC REPORTED A NET LOSS OF 115 MILLION OR 49 CENTS A SHARE ON REVENUE OF 206 MILLION COMPARED WITH FISCAL 1992 EARNINGS OF 176 MILLION OR 71 CENTS A SHARE ON REVENUE OF 2192 MILLION 9304270057 930427 CREDIT MARKETS LONGER TREASURYS FALL SHARPLY ON PRICE RISE IN GOLD WORRIES ABOUT BIG WAVE OF NEW SUPPLY BY THOMAS D LAURICELLA AND TERENCE DONNELLY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK A STEEP RISE IN GOLD PRICES SHOOK UP THE TREASURY MARKET AS PRICES FOR SECURITIES MATURING IN SEVEN YEARS OR MORE DROPPED SHARPLY AN INCREASE IN GOLD PRICES TYPICALLY UNNERVES BONDHOLDERS BECAUSE IT OFTEN REFLECTS EXPECTATIONS FOR HIGHER INFLATION BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN ESPECIALLY THOSE WITH LONGER MATURITIES ADDING TO THE DOWNWARD PRESSURES WAS THIS WEEK'S FORTHCOMING WAVE OF 60 BILLION OF NEW TREASURY BILLS AND NOTES THE BENCHMARK 30YEAR TREASURY BOND DROPPED NEARLY 1/2 POINT OR NEARLY 500 FOR A BOND WITH A 1000 FACE VALUE TO 103 23/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF ITS PRICE ROSE TO 683 FROM 679 ON FRIDAY THE 10YEAR NOTE DROPPED MORE THAN 1/2 POINT TO 102 4/32 FOR A YIELD OF 595 UP FROM 588 MOST OTHER TREASURY SECURITIES ENDED SLIGHTLY LOWER IN THE ABSENCE OF MARKETMOVING ECONOMIC DATA OR OTHER NEWS THE MAIN FOCUS FOR TRADING WAS A STEEP RISE IN GOLD PRICES THE SURGE IN PRICES OF GOLD AND OTHER PRECIOUS METALS GAVE A LIFT TO THE COMMODITY RESEARCH BUREAU'S INDEX OF 21 COMMODITIES WHICH ADDED TO THE WORRIES THAT HAD DEPRESSED THE PRICES OF LONGERTERM TREASURY SECURITIES COMMODITIES PRICE PRESSURES AND THE GOLD PRICE RISE WAS A PROBLEM SAID ALAN LEVENSON A MONEY MARKET ECONOMIST AT UBS GOVERNMENT SECURITIES INC BUT THE BIGGEST PROBLEM IN THE MARKET IS THAT MARKET PARTICIPANTS HAVE GOT TO ABSORB 60 BILLION IN NEW SUPPLY THIS WEEK IN ADDITION TO THE 20 BILLION IN THREEMONTH AND SIXMONTH BILLS SOLD YESTERDAY THE MARKET WILL HAVE TO CONTEND WITH 1525 BILLION OF TWOYEAR NOTES TO BE SOLD TODAY 11 BILLION OF FIVEYEAR NOTES TO BE SOLD TOMORROW AND 1425 BILLION OF ONEYEAR BILLS SLATED TO BE AUCTIONED THURSDAY GIVEN THE RELATIVELY HIGH LEVEL OF CURRENT PRICES AND A LACK OF INSTITUTIONAL INTEREST IN RECENT WEEKS THERE IS SOME UNCERTAINTY ABOUT HOW GOOD A RECEPTION THE AUCTIONS WILL GET FOR VERY LOW LEVELS OF YIELDS WE'VE GOT A LOT OF SUPPLY TO ABSORB MR LEVENSON SAID AND IT'S ON THE BACK OF A LOT OF CORPORATE ISSUANCE IN THE LAST FEW WEEKS PARTICIPANTS SAID THE TREASURY MARKET COULD BE SETTING ITSELF FOR A REPEAT OF RECENT TWOYEAR AND FIVEYEAR NOTE AUCTIONS WHERE PRICES HELD ON TO THEIR HIGHS THROUGH THE AUCTION PROCESS ONLY TO COLLAPSE IN LATER SESSIONS BEFORE REBOUNDING IN THE PERIODS IMMEDIATELY FOLLOWING THE AUCTIONS IN THE PAST FEW MONTHS THE MARKET HAS SOLD OFF IN A DRAMATIC WAY ONLY TO RECOVER LATER SAID MATTHEW ALEXY MARKET STRATEGIST AT FIRST BOSTON CORP IN LATE WHENISSUED TRADING YESTERDAY THE TWOYEAR NOTE YIELDED 380 UP FROM 377 ON FRIDAY AND THE FIVEYEAR NOTE YIELDED 510 UP FROM 506 IN ADDITION TO THE SUPPLY INVESTORS AND TRADERS FOUND A NUMBER OF OTHER REASONS TO SIT ON THEIR HANDS THERE'S A WHOLE LAUNDRY LIST OF ITEMS WHICH PEOPLE ARE USING AS EXCUSES TO STAY ON THE SIDELINES MR ALEXY SAID CHIEF AMONG THEM IS A RELUCTANCE TO TAKE BIG POSITIONS UNTIL THE TREASURY DEPARTMENT ANNOUNCES THE RESULTS OF ITS INTERNAL REVIEW ON THE WAY IT ISSUES SECURITIES THE TREASURY HAS SAID IT WILL REVEAL THE STUDY'S CONCLUSIONS SOMETIME BEFORE THE TERMS OF THE NEXT QUARTERLY REFUNDING AUCTIONS ARE ANNOUNCED ON MAY 5 BUT NO SPECIFIC DATE HAS BEEN SET THERE HAS BEEN A GREAT DEAL OF SPECULATION AMONG MARKET PARTICIPANTS THAT THE TREASURY WILL OPT TO REDUCE THE AMOUNT OF LONGERTERM DEBT ISSUED AS A MEANS OF LOWERING ITS INTEREST COSTS SOME SUCH AS ECONOMISTS AT GOLDMAN SACHS & CO HAVE PREDICTED THAT THE TREASURY WILL SHIFT TO SEMIANNUAL 30YEAR BOND OFFERINGS FROM THE CURRENT QUARTERLY STRUCTURE AND AS A RESULT WILL NOT SELL ANY BONDS AT THE MAY REFUNDING TYPICALLY THE REFUNDING AUCTIONS ARE COMPRISED OF THREEYEAR NOTES 10YEAR NOTES AND 30YEAR BONDS ALSO KEEPING ACTIVITY IN THE BOND MARKET QUIET IS UNCERTAINTY OVER THE TRUE PACE OF ECONOMIC GROWTH WHILE DATA RELEASED IN RECENT WEEKS COVERING ACTIVITY IN MARCH WERE ON THE SOFT SIDE AND SUPPORTIVE FOR THE BOND MARKET IT IS WIDELY ASSUMED THE FIGURES WERE DEPRESSED BY POOR WEATHER AS A RESULT INVESTORS ARE HOPING THAT THE ECONOMIC DATA FOR APRIL DUE OUT IN COMING WEEKS WILL PROVIDE A CLEARER PICTURE EITHER CONFIRMING THAT THE SLUGGISHNESS WAS WEATHERRELATED OR THAT IT REFLECTED A GENUINE PULLBACK IN THE RATE OF GROWTH THE FIRST MAJOR ECONOMIC REPORT FOR APRIL WILL BE THE EMPLOYMENT REPORT WHICH IS SET TO BE RELEASED ON MAY 7 WE'RE NOT GOING TO GET A CHANGE IN DIRECTION UNTIL WE GET A RESOLUTION OF HOW STRONG THE ECONOY REALLY IS MR LEVENSON OF UBS SAID ANOTHER FACTOR CONTRIBUTING TO THE MARKET'S MALAISE AND ONE THAT COULD HAVE A NEGATIVE EFFECT ON TREASURYS WITH LONG MATURITIES IS A GROWING SENSE THAT PRESIDENT CLINTON'S INABILITY TO PUSH THROUGH HIS STIMULUS PACKAGE MAY MEAN HIS DEFICIT REDUCTION PLAN WILL ALSO RUN INTO TROUBLE TO ME THE DEFEAT OF THE STIMULUS PACKAGE WAS SIGNIFICANT MR LEVENSON SAID THE PRESUMPTION THAT IT WAS GOING TO GO THROUGH INTACT IS NOW BEING CHALLENGED THE DANGER IS THAT LESS GETS DONE ABOUT THE DEFICIT HE SAID WITH SO MANY UNCERTAINTIES CLOUDING THE HORIZON THE MARKET'S DECLINES WERE POSTED ON ACTIVITY DOMINATED BY SPECULATIVE TRADING ACCOUNTS INSTITUTIONAL INVESTORS REMAINED GLUED TO THE SIDELINES WE WERE DOWN ON BASICALLY NO VOLUME AT ALL SAID BERNARD KANE A MANAGING DIRECTOR AT FUJI SECURITIES INC HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED APRIL 29 THE 13WEEK BILLS MATURE JULY 29 1993 AND THE 26WEEK BILLS MATURE OCT 28 1993 ALUMINUM CO OF AMERICA LED A HANDFUL OF BORROWERS THAT BRAVED RISING INTEREST RATES AND TAPPED THE DEBT MARKET THE COMPANY SOLD 175 MILLION OF THREEYEAR NOTES THE OFFERING ALCOA'S FIRST IN OVER SEVEN YEARS SOLD OUT QUICKLY ACCORDING TO LEAD UNDERWRITER FIRST BOSTON CORP INVESTORS SAID THE DEAL'S SHORT MATURITY WAS ALSO NOTEWORTHY INDUSTRIAL COMPANIES SUCH AS ALCOA GENERALLY ISSUE DEBT MATURING IN FIVE YEARS OR LONGER THE NONCALLABLE ISSUE WAS PRICED AT PAR AT A SPREAD OF 047 PERCENTAGE POINT ABOVE THE TREASURY THREEYEAR NOTE TO YIELD 4625 THE ISSUE IS RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP THE SECURITIES WERE CONSIDERED EXPENSIVE COMPARED WITH RECENT OFFERINGS OF OTHER SINGLEARATED BORROWERS BUT INVESTMENT BANKERS SAID THE OFFERING WAS WELL RECEIVED FOR A NUMBER OF REASONS MOST IMPORTANT ALCOA IS AN INFREQUENT ISSUER WHICH GIVES THE COMPANY AN ADVANTAGE OVER BORROWERS THAT TAP THE MARKET EVERY OTHER MONTH INVESTORS ARE ALWAYS LOOKING TO DIVERSIFY THEIR HOLDINGS AND SPREAD OUT CREDIT RISK A BANKER SAID THE DEAL'S THREEYEAR MATURITY WAS SEEN AS QUITE ATTRACTIVE BY INVESTORS TAKING A MORE DEFENSIVE STANCE TOWARD THE TREASURY MARKET SHORTERTERM CORPORATES ARE LESS VULNERABLE TO RISING INTEREST RATES THAN 30YEAR BONDS FOR EXAMPLE THESE POSITIVES APPEARED TO OFFSET INVESTOR CONCERNS THAT ALUMINUM PRICES WILL CONTINUE TO FALL ALCOA'S EARNINGS AND CASH FLOW MIGHT ALSO BE HURT BY THE PROPOSED US ENERGY TAX AND CONTINUED WORLDWIDE OVERPRODUCTION OF ALUMINUM PARTLY STEMMING FROM LARGE ALUMINUM EXPORTS FROM THE FORMER SOVIET UNION I THINK ALCOA'S CREDIT STORY IS STRONGER THAN MANY PEOPLE BELIEVE SAID A BANKER CLOSE TO THE DEAL THIS ISSUE SHOULD TRADE MORE LIKE A DOUBLEA RATED SECURITY HE ADDED ANOTHER COMPANY ATTRACTING MARKET ATTENTION IS GTE CORP WHICH IS SLATED TO OFFER SOON A 500 MILLION ISSUE OF 30YEAR BONDS THROUGH DEALERS LED BY GOLDMAN SACHS INVESTMENT BANKERS SAID THE DEAL COULD SERVE AS A TEST OF INVESTORS' WILL TO BUY LONGERDATED PAPER AT A TIME WHEN THE PRICES OF GOLD AND OTHER COMMODITIES HAVE BEEN RISING IN SECONDARY TRADING INTERMEDIATEMATURITY CORPORATES ENDED LITTLE CHANGED WHILE LONGERDATED ISSUES SLIPPED 1/8 POINT TO 1/4 POINT IN TANDEM WITH TREASURYS CORPORATES ARE DOWN BECAUSE TREASURY TRADERS ARE SELLING BONDS TO SET UP FOR THIS WEEK'S AUCTIONS A TRADER OF INDUSTRIAL DEBT SAID MUNICIPAL BOND PRICES DRIFTED LOWER AS MARKET PARTICIPANTS BIDED TIME BEFORE THE START OF THIS WEEK'S SUPPLY DELUGE AMONG ACTIVELY TRADED ISSUES HOLLYWOOD FLA'S 550 WATER AND SEWER REVENUE REFUNDING BONDS OF 2015 FINISHED 1/8 POINT LOWER AT 97 3/4 TO YIELD 564 GENERALLY PRICES FINISHED 1/8 TO 1/2 LOWER STILL ANXIOUSLY AWAITED ARE THE PRICINGS OF TWO HEFTY NEW YORK ISSUES TODAY A MERRILL LYNCH & CO GROUP MAY PRICE A NEW YORK STATE DORMITORY AUTHORITY REFUNDING ISSUE TOTALING AS MUCH AS 12 BILLION LAST WEEK THE DORM AUTHORITY APPROVED ISSUANCE OF AS MUCH AS 12 BILLION OF STATE UNIVERSITY EDUCATIONAL FACILITIES REVENUE REFUNDING BONDS BUT THE EXACT SIZE OF THE OFFERING WILL DEPEND ON THE INTEREST RATES IN THE BOND MARKETS AT THE TIME OF THE SALE MERRILL LYNCH SAYS THE OTHER BIG ISSUE IS NEW YORK STATE'S 850 MILLION OF 1993 TAX AND REVENUE ANTICIPATION NOTES WHICH WILL BE PRICED IN COMPETITIVE BIDDING TOMORROW THERE WAS SOME GOOD NEWS FOR THE STATE YESTERDAY WHEN S&P AND FITCH INVESTORS SERVICE INC ANNOUNCED THAT THEY GAVE THE NOTES THEIR HIGHEST SHORTTERM RATINGS OF SP1PLUS AND F1PLUS RESPECTIVELY ON FRIDAY MOODY'S INVESTORS SERVICE INC ASSIGNED THE NOTES ITS TOP SHORTTERM RATING OF MIG1 THE HIGHEST RATING FOR NEW YORK NOTES SINCE 1989 ALL THREE RATING AGENCIES NOTED THE STATE'S FISCAL 1993 SURPLUS OF 671 MILLION IN THEIR COMMENTS ABOUT NEW YORK'S LATEST NOTE OFFERING THIS YEAR'S 850 MILLION SPRING BORROWING WILL BE THE SMALLEST FOR NEW YORK IN ROUGHLY 20 YEARS ACCORDING TO THE OFFICE OF NEW YORK STATE COMPTROLLER EDWARD REGAN WITH THE SIZE OF THE BORROWING UNUSUALLY SMALL AND MANY PREVIOUS NOTEHOLDERS PROBABLY INTERESTED IN REINVESTING DEMAND IS GOING TO BE GIGANTIC SAYS DENIS GALLE A MANAGING DIRECTOR AT LEBENTHAL & CO PRICES OF MORTGAGEBACKED SECURITIES ENDED LOWER AMONG AGENCY 7 SECURITIES FOR MAY DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION SECURITIES FINISHED 17/32 LOWER AT 100 24/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES FINISHED 17/32 LOWER TO END AT 100 30/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION SECURITIES FINISHED 16/32 LOWER AT 100 25/32 PARTICIPANTS THIS WEEK ARE AWAITING FREDDIE MAC'S FRIDAY RELEASE OF MIDMARCH TO MIDAPRIL PREPAYMENT DATA THE NUMBERS WILL PROVIDE EVIDENCE OF THE STRENGTH OR WEAKNESS OF THE CURRENT WAVE OF HOMELOAN REFINANCE ACTIVITY PREPAYMENT SPEEDS WHICH HAVE BEEN ON THE RISE IN RECENT MONTHS MAY NOT BE AS FAST AS EXPECTED DESPITE INTEREST RATES THAT STAND AT 20YEAR LOWS SOME ANALYSTS BELIEVE IN THE PRIMARY MARKET PRODUCTION OF NEW REAL ESTATE MORTGAGE INVESTMENT CONDUITS CONTINUED AS TWO DEALS BOTH BACKED BY 30YEAR 7 COUPONS WERE ANNOUNCED THE ISSUES COMBINED TO START THE WEEK OFF WITH 1 BILLION IN NEW PRODUCTION 9304270056 930427 BUSINESS BRIEF ENGELHARD CORP NET INCOME OF 222 MILLION POSTED FOR THE FIRST QUARTER ENGELHARD CORP REPORTED A FIRSTQUARTER PROFIT COMPARED WITH A YEAREARLIER LOSS PARTLY DUE TO THE ADOPTION IN THE PRIOR YEAR OF NEW ACCOUNTING RULES FOR RETIREE HEALTH BENEFITS AND INCOME TAXES THE ISELIN NJ PROVIDER OF SPECIALTY CHEMICAL PRODUCTS ENGINEERED MATERIALS AND PRECIOUS METAL MANAGEMENT SERVICES SAID NET INCOME WAS 222 MILLION OR 34 CENTS A SHARE COMPARED WITH A LOSS OF 67 MILLION OR 99 CENTS A SHARE IN THE YEAREARLIER PERIOD THE 1993 QUARTER INCLUDED A GAIN OF 63 MILLION OR 10 CENTS A SHARE FROM THE SALE OF THE COMPANY'S STAKE IN A CHEMICAL PLATING BUSINESS THE CHARGES IN THE 1992 QUARTER FOR THE NEW ACCOUNTING RULES AMOUNTED TO 895 MILLION OR 132 A SHARE IN THE CURRENT PERIOD ENGELHARD REPORTED A 26 DROP IN OPERATING EARNINGS TO 296 MILLION FROM 399 MILLION DUE TO AN EARNINGS DROP IN THE ENVIRONMENTAL CATALYSTS AND PRECIOUS METAL MANAGMENT BUSINESSES AND THE TIMING OF EXPECTED PRODUCTIVITY GAINS WHICH WERE TO OFFSET THESE RESULTS THE COMPANY SAID SALES DROPPED 22 TO 4902 MILLION FROM 630 MILLION MAINLY REFLECTING LOWER PRECIOUS METAL VOLUMES AND PRICES ENGELHARD SAID THE COMPANY HOWEVER SAID PRODUCTIVITY INITIATIVES WOULD HAVE A POSITIVE IMPACT ON ITS EARNINGS THIS YEAR 9304270055 930427 ABREAST OF THE MARKET TRANSPORTATION AND BANKING ISSUES HIT HARDEST AS INDUSTRIALS DECLINE BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SURROUNDED BY REASONS TO SELL INVESTORS SENT STOCK PRICES LOWER FOR A SIXTH STRAIGHT DAY TRANSPORTATION AND BANKING ISSUES WERE THE HARDEST HIT AS THEY REACTED TO DECLINES IN BOND PRICES AND THE DOLLAR ON FEARS OF INFLATION AND A WEAK ECONOMY LONGTERM GOVERNMENT SECURITIES LOST MORE THAN 3/8 POINT THE DOLLAR FELL SHARPLY AGAINST THE MARK THE DOW JONES INDUSTRIAL AVERAGE SLIPPED 1540 OR 045 TO 339837 ITS FIRST CLOSE BELOW 3400 SINCE APRIL 8 THE AVERAGE HAS LOST 80 POINTS OR 23 SINCE HITTING A HIGH ON APRIL 16 THE LAST DAY THE INDUSTRIALS ENDED HIGHER THE DOW JONES TRANSPORTATION AVERAGE ALSO SLID THROUGH A MILESTONE LEVEL IT PLUNGED 3747 OR 232 TO 158055 IT HADN'T BEEN BELOW 1600 SINCE APRIL 6 MEANWHILE THE DOW JONES EQUITY MARKET INDEX INDUSTRY GROUP OF 55 US BANKS TUMBLED 39 ON THE NEW YORK STOCK EXCHANGE THERE WERE 647 ISSUES ADVANCING 1260 DECLINING AND 610 UNCHANGED NYSE VOLUME TOTALED 281107000 SHARES COMPARED WITH 257030000 SHARES FRIDAY AFTER DAYS OF LOWER PRICES SKITTISHNESS AMONG INVESTORS HAS INTENSIFIED TRADERS SAID ALREADY WORRIED ABOUT THE MARKET'S NEARTERM PROSPECTS SELLING BRED MORE SELLING AND THE MARKET'S LOSSES SNOWBALLED IT IS A COMBINATION OF FACTORS AND WORRIES THAT TOPPLED STOCKS SAID WILLIAM DODGE CHIEF INVESTMENT STRATEGIST AT DEAN WITTER REYNOLDS THERE IS NO SINGLE CLEARCUT REASON HE SAID THE STANDARD & POOR'S 500 STOCK INDEX SHED 349 OR 080 TO 43354 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX DECLINED 194 OR 080 TO 23991 THE DOW JONES EQUITY MARKET INDEX DROPPED 379 OR 091 TO 41072 DON R HAYS MARKET STRATEGIST AT WHEAT FIRST BUTCHER & SINGER SAID TRANSPORTATION STOCKS WERE BIG LOSERS BECAUSE THEIR STRENGTH IN RECENT WEEKS LEFT THEM THE MOST RIPE FOR PROFITTAKING THE REASONING BEHIND THE BANK GROUP LOSSES WAS SIMILAR EXCEPT THOSE STOCKS HAVE BEEN STRONG FOR MORE THAN A YEAR THE WEAKNESS IN THE BOND PRICES AND RESULTANT CLIMB IN MARKET INTEREST RATES ALSO HURT THE BANK SECTOR AMONG STOCKS POSTING SHARP DROPS WERE BANKAMERICA WHICH LOST 2 7/8 TO 44 1/4 LOS ANGELESBASED FIRST INTERSTATE WHICH SLID 3 1/4 TO 53 1/2 AND BANKERS TRUST WHICH SKIDDED 2 5/8 TO 67 5/8 UBS SECURITIES LOWERED ITS INVESTMENT RATINGS ON JP MORGAN BANKAMERICA PNC BANK AND WELLS FARGO TO SELL FROM HOLD THE BROKERAGE FIRM ALSO CUT ITS RATING ON FIRST CHICAGO BB&T FINANCIAL AND FIRST EMPIRE STATE TO HOLD FROM BUY INSURANCE AND BROKERAGE STOCKS ALSO TUMBLED AETNA LIFE & CASUALTY STUMBLED 1 1/8 TO 50 1/8 AMERICAN INTERNATIONAL GROUP PLUNGED 5 3/4 TO 118 3/4 CHUBB DECLINED 3 1/2 TO 86 1/2 PRIMERICA SANK 3 7/8 TO 41 5/8 AND MERRILL LYNCH DROPPED 1 5/8 TO 69 1/4 AIRLINES PULLED THE TRANSPORTATION SEGMENT LOWER UAL THE PARENT OF UNITED AIRLINES LOST 4 7/8 TO 139 3/8 AND AMR PARENT OF AMERICAN AIRLINES DROPPED 2 1/2 TO 66 7/8 ELSEWHERE XTRA DECLINED 3 TO 91 3/8 AND AMERICAN PRESIDENT FELL ONE TO 47 7/8 I THINK THE MARKET IS LOSING EARNINGS THEMES SAID CHARLES I CLOUGH MARKET STRATEGIST AT MERRILL LYNCH & CO GROUPS WITH STRONG PROFIT GROWTH INCLUDING CONSUMER PRODUCTS MAKERS TECHNOLOGY DEVELOPERS AND FINANCIAL INSTITUTIONS ALL HAVE RUN INTO TROUBLE HE SAID MERRILL LYNCH'S MR CLOUGH SAID PRICES MIGHT REMAIN WEAK FOR SIX MONTHS AS INVESTORS REACT TO THE SHAKEOUT IN THESE FORMER LEADERSHIP AREAS OF THE THREE HE EXPECTS THE STRONGEST REBOUND TO COME FROM TECHNOLOGY BASED ON THE EMERGENCE OF A NEW HOT PRODUCT AREA WHEAT FIRST'S MR HAYS THOUGH SAID HE EXPECTS THE MARKET TO BEGIN TO REBOUND MUCH SOONER THE WEAKKNEE PEOPLE ARE FOCUSING ON THE WEAKNESS IN THE FIRST QUARTER ECONOMIC DATA HE SAID BUT IN THE NEXT MONTH OR SO PEOPLE ARE GOING TO SEE THAT THE SECOND QUARTER WILL BE OUTSTANDING MR HAYS SAID A SHARP SELLOFF IN NASDAQLISTED INTEL A SANTA CLARA CALIF MICROPROCESSOR COMPANY HELPED DEPRESS MANY BIG BOARD TECHNOLOGY STOCKS MOTOROLA DISCLOSED PLANS TO UNDERCUT INTEL IN PRICING FOR THE CHIPS THAT RUN PERSONAL COMPUTERS THE STOCK OF MOTOROLA OF SCHAUMBERG ILL CLOSED DOWN 1 1/2 TO 69 1/8 IT HAD JUMPED TO 72 EARLY IN THE DAY HEWLETTPACKARD SHED 2 3/4 TO 70 3/4 COMPAQ COMPUTER DECLINED 7/8 TO 47 7/8 ADVANCED MICRO DEVICES DIPPED 1 1/2 TO 29 AND TEXAS INSTRUMENTS FELL 1 7/8 TO 54 INTERNATIONAL BUSINESS MACHINES THOUGH ADDED 5/8 TO 48 3/8 THE ARMONK NY COMPUTER COMPANY ASSUAGED FEARS THAT IT WOULD CUT ITS DIVIDEND AGAIN IT DECLARED A QUARTERLY PAYOUT OF 54 CENTS THE SAME AMOUNT IT DISTRIBUTED IN THE PREVIOUS QUARTER BIG BLUE SLASHED ITS DIVIDEND 55 EARLIER THIS YEAR AMID THE SELLING SEVERAL PROMINENT STOCKS ADVANCED AFTER POSITIVE EARNINGS NEWS CUMMINS ENGINE SURGED 2 1/4 TO 93 7/8 THE COLUMBUS IND DIESEL ENGINE MAKER SAID ITS FIRSTQUARTER EARNINGS JUMPED TO 224 A SHARE BEFORE AN ACCOUNTINGRELATED CHARGE UP FROM 20 CENTS A YEAR EARLIER CUMMINS PREDICTED EVEN STRONGER SECONDQUARTER RESULTS ASSUMING ECONOMIC CONDITIONS DO NOT DETERIORATE DAYTON HUDSON LOST 2 TO 69 1/8 AFTER FALLING 3 1/4 FRIDAY ON A REPORT OF POSSIBLE REDUCTIONS IN ANALYSTS' ESTIMATES FOR FISCAL 1994 EARNINGS RESPONDING TO THE REPORT THE RETAILER SAID IT IS NOT UNCOMFORTABLE WITH ANALYSTS' 1994 ESTIMATES IN THE RANGE OF 550 TO 6 A SHARE NORSK HYDRO CLIMBED 1 3/8 TO 25 3/8 IN HEAVY TRADING THE COMPANY SAID THAT ITS NET PROFIT ROSE 133 IN THE FIRST QUARTER MAINLY BECAUSE OF CONTINUED DEVELOPMENT IN OIL AND GAS ACTIVITIES BLACK & DECKER ADDED ONE TO 19 AFTER THE COMPANY RECORDED FIRSTQUARTER EARNINGS OF 13 CENTS A SHARE UP FROM SIX CENTS LAST YEAR BEFORE NONRECURRING ITEMS ANALYSTS HAD EXPECTED THE TOWSON MD POWER TOOLS CONCERN TO HAVE A PROFIT OF JUST NINE CENTS A SHARE IN THE LATEST PERIOD STANDARD COMMERCIAL SLUMPED 3 1/2 TO 19 1/2 AFTER THE WILSON NC TOBACCO COMPANY SAID IT WON'T PROCEED WITH ITS PLANNED MERGER WITH DIBRELL BROTHERS IN NASDAQ TRADING DIBRELL SHARES JUMPED 2 1/4 TO 28 3/4 9304270054 930427 BUSINESS BRIEF VARIAN ASSOCIATES INC NET INCOME INCREASED 19 FOR FISCAL SECOND QUARTER VARIAN ASSOCIATES INC SAID NET INCOME ROSE 19 IN ITS FISCAL SECOND QUARTER AS OPERATIONS IMPROVED IN THE COMPANY'S CORE BUSINESSES PROFIT FOR THE QUARTER ENDED APRIL 2 ROSE TO 93 MILLION OR 51 CENTS A SHARE FROM 78 MILLION OR 41 CENTS A SHARE IN THE YEAREARLIER PERIOD SALES FOR THE PALO ALTO CALIF COMPANY WHICH MAKES ELECTRONICS EQUIPMENT AND EQUIPMENT USED IN SEMICONDUCTOR MANUFACTURING ROSE 33 TO 3253 MILLION FROM 3148 MILLION THE RESULTS WERE IN LINE WITH ANALYSTS' EXPECTATIONS BUT VARIAN'S STOCK FELL 2625 TO 44 COMPOSITE NEW YORK STOCK EXCHANGE TRADING J TRACY O'ROURKE VARIAN'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THERE WAS A MILD UPTURN IN SEMICONDUCTOR RECEIPTS FROM JAPAN WHICH CONTRIBUTED TO A 14 INCREASE IN SEMICONDUCTOR SALES ORDERS FOR VARIAN'S HEALTHCARE SYSTEMS BUSINESS ALSO ROSE MODESTLY REFLECTING CONTINUED STRONG DEMAND FOR ITS CANCER THERAPY SYSTEMS AND XRAY TUBE PRODUCT LINES PROFIT FOR THE PERIOD WAS CONSTRAINED HOWEVER BY TURMOIL IN THE INTERNATIONAL CURRENCY MARKETS 9304270053 930427 INTERNATIONAL BRIEF BRITISH AIRWAYS CARRIER TO PAY 863 MILLION TO MAINTAIN STAKE IN USAIR BRITISH AIRWAYS SAID IT WILL SPEND 863 MILLION IN EXERCISING ITS RIGHT TO PURCHASE FURTHER SHARES IN USAIR GROUP INC OF ARLINGTON VA LONDONBASED BRITISH AIR SAID THE PURCHASE WILL ALLOW IT TO MAINTAIN ITS CURRENT 246 HOLDING IN USAIR GROUP'S EQUITY SHARE CAPITAL ON AN UNDILUTED BASIS BRITISH AIR ACQUIRED THE RIGHTS TO BUY MORE USAIR STOCK AS PART OF THEIR INVESTMENT AGREEMENT IN JANUARY 1993 BRITISH AIR'S MOVE FOLLOWS USAIR'S DECISION EARLIER THIS MONTH TO RAISE ABOUT 200 MILLION THROUGH AN ISSUE OF 10 MILLION COMMON SHARES BRITISH AIR WILL PURCHASE SHARES OF A NEW SERIES OF SERIES T CONVERTIBLE PREFERRED STOCK WHICH IS CONVERTIBLE INTO 327 MILLION SHARES OF THE UNDERLYING COMMON STOCK IN THE EVENT THE UNDERWRITERS OF THE USAIR'S COMMON OFFERING EXERCISE THEIR 15 OVERALLOTMENT OPTION WHICH WOULD BRING THE TOTAL NUMBER OF SHARES SOLD TO 115 MILLION BRITISH AIR WILL PURCHASE 129 MILLION OF ADDITIONAL SERIES T CONVERTIBLE PREFERRED STOCK THE COMPANY SAID IN MARCH BRITISH AIR INVESTED 300 MILLION IN THE AILING US AIRLINE WHICH HAD AN OPERATING LOSS OF 6008 MILLION LAST YEAR THE INVESTMENT IS OPPOSED BY AMERICAN AIRLINES UNITED AIRLINES AND DELTA AIR LINES WHICH WANT BETTER ACCESS TO THE BRITISH MARKET 9304270052 930427 CANADA SQUEEZED BY DEBT BURDEN UNVEILS FRUGAL ELECTIONYEAR BUDGET BY JOHN URQUHART AND ROSANNA TAMBURRI STAFF REPORTERS OF THE WALL STREET JOURNAL OTTAWA THE CANADIAN GOVERNMENT STRUGGLING TO COPE WITH A HUGE DEBT BURDEN INTRODUCED A FRUGAL ELECTIONYEAR BUDGET THAT OFFERS LITTLE JOY TO VOTERS THE BUDGET FOR THE YEAR ENDING MARCH 31 1994 PROVIDES ONLY 95 CENTS WORTH OF GOVERNMENT SERVICES FOR EVERY TAX DOLLAR TO BE COLLECTED NINE YEARS AGO THE GOVERNMENT GAVE CANADIANS 122 OF SERVICES FOR EVERY DOLLAR OF TAXES IT TOOK IN FINANCE MINISTER DON MAZANKOWSKI TOLD THE HOUSE OF COMMONS THAT TAXPAYERS ARE PAYING MORE AND MORE FOR LESS AND LESS SERVICE FROM THE GOVERNMENT BECAUSE INTEREST ON THE GOVERNMENT'S DEBT IS EATING UP A GROWING SHARE OF THE TAX DOLLAR THE BUDGET LIKELY TO BE THE LAST BEFORE AN ELECTION LATER THIS YEAR IMPOSED NO NEW TAXES OR TAX INCREASES BUT NEITHER DID IT PROVIDE ANY OF THE TAX BREAKS OR GIVEAWAYS OF PREVIOUS ELECTIONYEAR BUDGETS MR MAZANKOWSKI SAID CANADIANS WERE PREPARED TO ACCEPT FISCAL RESTRAINT IN ORDER TO BRING DOWN THE DEFICIT THE BUDGET CALLS FOR THE GOVERNMENT'S DEFICIT TO NARROW THIS YEAR TO 326 BILLION CANADIAN DOLLARS US258 BILLION FROM C355 BILLION IN FISCAL 1993 IT ALSO SETS OUT A LONGERTERM TRACK FOR FISCAL IMPROVEMENT LEADING IN FIVE YEARS TO A SURPLUS THAT WOULD ALLOW THE GOVERNMENT TO START PAYING DOWN ITS OUTSTANDING STOCK OF DEBT THE FEDERAL GOVERNMENT'S DEBT TOTALS ABOUT C423 BILLION OR 63 OF THE GROSS DOMESTIC PRODUCT WHICH IS THE TOTAL VALUE OF THE COUNTRY'S OUTPUT OF GOODS AND SERVICES IT IS THE SECOND HIGHEST DEBT RATIO AFTER THAT OF ITALY AMONG MAJOR INDUSTRIAL COUNTRIES PUBLIC DEBT CHARGES ARE EXPECTED TO TAKE 25 CENTS OF EVERY DOLLAR OF GOVERNMENT SPENDING THIS YEAR THIS IS ALMOST DOUBLE THE US DEBT CHARGE RATIO TOTAL GOVERNMENT SPENDING IS EXPECTED TO RISE 07 TO C1595 BILLION THIS YEAR AND REVENUE IS EXPECTED TO INCREASE 32 TO C1269 BILLION MR MAZANKOWSKI SAID THE GOVERNMENT WILL BE CURBING SPENDING IN THE NEXT TWO YEARS IN DEFENSE FOREIGN AID SUBSIDIES TO BUSINESS AND GOVERNMENT OPERATING BUDGETS THE BUDGET CURBS COMBINED WITH SPENDING RESTRAINTS ANNOUNCED IN DECEMBER WILL RESULT IN SAVINGS OF C380 BILLION THIS YEAR SHERRY COOPER CHIEF ECONOMIST AT THE TORONTO SECURITIES COMPANY OF BURNS FRY LTD SAID SHE WAS DISAPPOINTED THAT THE BUDGET DIDN'T MAKE BIGGER SPENDING CUTS THE GOVERNMENT'S RECENT TOUGH TALK ON SPENDING PROMPTED SOME MARKET ANALYSTS TO EXPECT A FISCAL 1994 DEFICIT FIGURE OF LESS THAN C30 BILLION THE BUDGET WILL BE THE LAST BEFORE PRIME MINISTER BRIAN MULRONEY STEPS DOWN IN JUNE AS LEADER OF THE GOVERNMENT AND THE RULING PROGRESSIVE CONSERVATIVE PARTY HIS SUCCESSOR IS TO BE PICKED AT A CONSERVATIVE PARTY CONVENTION JUNE 13 AND AN ELECTION IS TO BE HELD BY NOVEMBER PROVIDED THE GOVERNMENT OVERCOMES ITS DEBT PROBLEMS THE COUNTRY'S ECONOMIC PROSPECTS ARE ENCOURAGING MR MAZANKOWSKI ESTIMATED THAT THE GDP WILL RISE 29 THIS YEAR AND 46 NEXT YEAR THE PROJECTIONS ARE IN LINE WITH THOSE OF VARIOUS FINANCIAL INSTITUTIONS AND INTERNATIONAL ORGANIZATIONS THE 24NATION ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT FORECAST THAT CANADA WILL HAVE THE STRONGEST ECONOMIC GROWTH AMONG MAJOR INDUSTRIAL COUNTRIES IN 1993 AND 1994 UNEMPLOYMENT HOWEVER IS EXPECTED TO REMAIN HIGH BECAUSE OF AN INFLUX OF JOB SEEKERS INTO THE LABOR MARKET THE GOVERNMENT ESTIMATED THAT THE UNEMPLOYMENT RATE WILL AVERAGE 111 THIS YEAR AND 107 IN 1994 CANADIAN CHAMBER OF COMMERCE PRESIDENT TIM REID SAID THE GOVERNMENT'S NEW BUDGET IS NOT TOUGH ENOUGH HE NOTED THAT SPENDING ON GOVERNMENT PROGRAMS IS TO INCREASE C11 BILLION THIS YEAR THAT MONEY COULD HAVE GONE INTO REDUCING THE DEFICIT HE SAID MICHAEL MCCRACKEN PRESIDENT OF THE OTTAWABASED ECONOMIC CONSULTING COMPANY INFORMETRICA LTD PREDICTED THAT CANADA'S GROWTH THIS YEAR WILL BE A LOT WEAKER THAN THE 29 INCREASE FORECAST BY THE BUDGET HE SAID THE BUDGET DIDN'T TAKE INTO ACCOUNT THE IMPACT ON GROWTH OF THE SPENDING CUTS ANNOUNCED IN RECENT WEEKS BY PROVINCIAL GOVERNMENTS WHICH ARE WRESTLING WITH THEIR OWN BUDGET DEFICITS 9304270051 930427 LAW LEGAL BEAT URBAN TRAUMA MITIGATES GUILT DEFENDERS SAY BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL LAWYERS DEFENDING INNERCITY CRIMINALS ARE HONING A NEW AND STARTLING PSYCHIATRIC DEFENSE THAT THEIR CLIENTS SUFFER FROM AN URBAN PSYCHOSIS THAT REDUCES THEIR RESPONSIBILITY FOR THEIR CRIMES THE LAWYERS ARGUE THAT DAYTODAY URBAN LIFE CAN INDUCE POSTTRAUMATIC STRESS DISORDER A CONDITION COURTS ALREADY HAVE RECOGNIZED IN VIETNAM VETERANS RAPE VICTIMS AND BATTERED SPOUSES AND CHILDREN SOME DEFENSE LAWYERS ARE ASKING COURTS TO TAKE THIS CONDITION INTO ACCOUNT WHEN THEY DETERMINE THE GUILT AND PUNISHMENT OF INNERCITY RESIDENTS BUT MANY LEGAL AND PSYCHOLOGICAL EXPERTS ARE SKEPTICAL ABOUT WHETHER URBAN PSYCHOSIS EVEN EXISTS THE DEFENSE APPARENTLY WAS FIRST USED WITH ONLY SOME SUCCESS LAST OCTOBER IN THE CASE OF A MILWAUKEE TEENAGER WHO SHOT A GIRL IN ORDER TO STEAL HER PATCHWORKLEATHER TRENCHCOAT A PSYCHOLOGIST TESTIFIED THAT THE TEENAGER FELICIA LISA MORGAN WAS ASSAULTED ROUTINELY WHILE GROWING UP AND THAT HER PARENTS PULLED GUNS ON EACH OTHER IN HER PRESENCE MS MORGAN'S MOTHER ONCE SHOT HER FATHER AND HER FATHER SHOT THE FAMILY DOG FOR NO APPARENT REASON IN ADDITION NUMEROUS FRIENDS AND RELATIVES HAD BEEN SHOT AND SEVERAL KILLED INCLUDING A FAVORITE UNCLE WHO MS MORGAN INSISTED WAS STILL ALIVE MS MORGAN 18 ALSO SAID SHE WAS RAPED BY A LANDLORD WHEN SHE WAS 12 MS MORGAN WAS SENTENCED TO LIFE IN PRISON FOR ARMED HOMICIDE ARMED ROBBERY AND OTHER CHARGES BUT ALTHOUGH PROSECUTORS WANTED TO DENY HER PAROLE FOR AT LEAST 60 YEARS THE JUDGE MADE HER ELIGIBLE AFTER THE MINIMUM TIME OF 13 YEARS AND FOUR MONTHS IN A SEPARATE CASE ALSO IN MILWAUKEE AN ATTORNEY FOR A MAN CHARGED WITH MURDER APPLIED THE URBANPSYCHOSIS DEFENSE IN TANDEM WITH A RAPETRAUMA ARGUMENT THE DEFENDANT TURHAN TAYLOR 30 GREW UP IN A VIOLENT FAMILY IN A TOUGH NEIGHBORHOOD WAS SEXUALLY ASSAULTED AS A YOUTH AND WAS GANGRAPED IN PRISON HIS PUBLIC DEFENDER PAUL FLYNN SAYS HIS CLIENT HAD A FLASHBACK TO PREVIOUS ASSAULTS WHEN HE STABBED HIS VICTIM THE MAN WAS FOUND GUILTY OF MANSLAUGHTER RATHER THAN FIRSTDEGREE INTENTIONAL HOMICIDE AS REQUESTED BY THE PROSECUTION MR FLYNN SAID HE ALSO HOPES THE URBANPSYCHOSIS ARGUMENT WILL PLAY A ROLE AT HIS CLIENT'S SENTENCING THERE ARE STREETS IN THIS CITY WHERE THERE'S SHOOTINGS EVERY NIGHT HE SAID BUT JURIES DON'T WANT TO BELIEVE THAT IN THEIR CITY THAT EXISTS IT'S A REAL BATTLE FOR THE ATTORNEY PROPONENTS SAY THE DEFENSE CANNOT BE APPLIED IN EVERY CASE IN WHICH AN INNER CITY RESIDENT IS A DEFENDANT JUST AS ONLY SOME WAR VETERANS DEVELOP POSTTRAUMATIC STRESS DISORDER THEY SAY ONLY A CERTAIN PERCENTAGE OF THOSE RESIDENTS ARE SUSCEPTIBLE TO URBAN PSYCHOSIS AND THEN ONLY A FEW EXPERIENCE THE EXTRAORDINARY VIOLENCE BOTH INSIDE AND OUTSIDE THE HOME THAT BELIEVERS SAY TRIGGERS THE DISORDER STILL TENS OF THOUSANDS OF INNERCITY CHILDREN PROBABLY DO SUFFER FROM THE DISORDER AS WELL AS LOSS OF FAITH IN ADULTS AND IN THE FUTURE CONTENDS JAMES GARBARINO A CHICAGO SPECIALIST ON THE EFFECTS OF VIOLENCE ON CHILDREN AND AN EXPERT WITNESS FOR MS MORGAN SOME SYMPTOMS OF POSTTRAUMATIC STRESS DISORDER ARE FLASHBACKS ESTRANGEMENT FROM OTHERS EXTREME JUMPINESS AND SLEEP PROBLEMS NOT SURPRISINGLY PROSECUTORS AS WELL AS SOME JUDGES AND PSYCHOLOGISTS ARE SKEPTICAL PRETTY SOON WE'RE GOING TO HAVE TO SWEEP IN THAT EVERYBODY BECAUSE THEY'RE BORN SUFFERS FROM POSTTRAUMATIC STRESS DISORDER SAID KARIL S KLINGBEIL A PROFESSOR OF SOCIAL WORK AND PSYCHOLOGY AT THE UNIVERSITY OF WASHINGTON WHO FREQUENTLY TESTIFIES ABOUT BATTEREDWOMAN BATTEREDCHILD AND BATTEREDPERSON SYNDROMES IT'S GETTING OUT OF CONTROL ALTHOUGH INNERCITY LIFE HAS BEEN SHOWN TO CAUSE ANXIETY DEPRESSION AND OTHER PROBLEMS THOSE PROBLEMS DON'T NECESSARILY RISE TO THE LEGAL DEFINITION OF A MENTAL DISORDER SAID RONALD SCHOUTEN DIRECTOR OF THE LAW AND PSYCHIATRY SERVICE AT MASSACHUSETTS GENERAL HOSPITAL IN BOSTON THE PUBLIC POLICY CONCERNS ALSO WORRY SOME LAWYERS BRUCE FEIN A CONSERVATIVE CONSTITUTIONAL SCHOLAR AND ATTORNEY IN GREAT FALLS VA SAID THE DEFENSE THREATENS THE ENTIRE FABRIC OF THE LAW WE HAVE A WHOLE RAFT OF LAWYERS TODAY ARGUING THAT INDIVIDUALS ARE JUST HELPLESS OVER THEIR CIRCUMSTANCES AND DON'T HAVE A CHOICE OVER THEIR DESTINY HE SAID THAT'S NONSENSE AND EVEN MANY DEFENSE LAWYERS SAY THEY WOULD SHUN THE STRATEGY I THINK LAWYERS ARE ILLADVISED TO TRY TO CHARACTERIZE IT AS A SEPARATE PSYCHIATRIC DISORDER GIVEN THE JURORS' DISTRUST OF PSYCHIATRISTS IN GENERAL SAID NEW YORK CRIMINAL ATTORNEY RONALD L KUBY BUT ROBIN SHELLOW THE ATTORNEY FOR MS MORGAN NOTES THAT TWO OF THE 12 JURORS IN HER CASE BELIEVED THE ARGUMENT THAT'S TWO MORE THAN ANYBODY SAID I COULD GET SAID MS SHELLOW MS SHELLOW SAID THE URBANPSYCHOSIS DEFENSE COULD BE PARTICULARLY USEFUL IN STATES WHERE DEFENDANTS ARE ALLOWED TO PLEAD DIMINISHED CAPACITY A MENTAL DISTURBANCE LESS SEVERE THAN INSANITY SHE'S APPEALING THE TRIAL JUDGE'S DECISION TO ALLOW EVIDENCE OF URBAN PSYCHOSIS IN ONLY THE SENTENCING PHASE OF THE CASE IT'S RELEVANT TO THE ISSUE OF HER INTENT MS SHELLOW SAID LISA WAS SO USED TO BEING SEVERAL TIMES ALMOST FATALLY ASSAULTED THAT BY THE TIME SHE HIT THE STREETS THAT'S ALL SHE KNEW JACOB WORENKLEIN WHO PROPELLED THE LAW FIRM MILBANK TWEED HADLEY & MCCLOY INTO A MAJOR PRESENCE IN PROJECT FINANCE WILL JOIN LEHMAN BROTHERS AS MANAGING DIRECTOR OF THE AMERICAN EXPRESS CO UNIT'S PROJECT FINANCE BUSINESS AT LEHMAN MR WORENKLEIN WILL FOCUS ON RAISING CAPITAL FOR ENERGY TRANSPORTATION TELECOMMUNICATIONS AND OTHER INFRASTRUCTURE PROJECTS IN THE THIRD WORLD AND IN INDUSTRIALIZED COUNTRIES HE SAID IN PARTICULAR HE SAID HE WILL SEEK TO EXPAND THE SOURCES OF THAT CAPITAL BEYOND TRADITIONAL BANK LENDING TO INCLUDE PENSION FUNDS AND CAPITAL MARKETS MANY BANKS HAVE BEEN LEERY OF FINANCING THIRD WORLD INFRASTRUCTURE PROJECTS AFTER SUFFERING HEAVY LOSSES ON SUCH LOANS DURING THE 1980S LEHMAN DOESN'T CURRENTLY HAVE A SEPARATE PROJECTFINANCE DIVISION ALTHOUGH ABOUT 10 PEOPLE IN OTHER INDUSTRY AND GEOGRAPHICAL GROUPS HAVE BEEN DOING PROJECT FINANCE SAID MEL SHAFTEL HEAD OF INVESTMENT BANKING LEHMAN PLANS TO BRING THOSE 10 PEOPLE TOGETHER IN ONE GROUP TO BE HEADED BY MR WORENKLEIN AND WILL LIKELY ADD NEW POSITIONS IN PROJECT FINANCE MR SHAFTEL SAID UNTIL NOW MR SHAFTEL SAID LEHMAN HASN'T BEEN ADEQUATELY STAFFED TO TAKE ADVANTAGE OF SOME PROJECTFINANCE OPPORTUNITIES WE SEE AN ENORMOUS GLOBAL OPPORTUNITY IN PROJECT FINANCE FAR GREATER THAN WE'VE BEEN ABLE TO TAKE ADVANTAGE OF WITH THE RESOURCES WE'VE HAD HE SAID MR WORENKLEIN JOINED MILBANK IN 1973 AND HAS BEEN A MEMBER OF THE FIRM'S EXECUTIVE COMMITTEE SINCE 1989 MR WORENKLEIN BEGAN THE FIRM'S PROJECTFINANCE PRACTICE AND BUILT IT INTO ONE OF THE WORLD'S LARGEST ACCORDING TO PRIVATISATION INTERNATIONAL AN INDUSTRY NEWSLETTER MILBANK COMPLETED MORE PROJECTFINANCE DEALS THAN ANY OTHER LAW FIRM IN 1991 AND 1992 SINCE 1989 THE FIRM SUCCESSFULLY COMPLETED 111 PROJECTS WITH A CAPITAL COST OF 21 BILLION MR WORENKLEIN SAID MARIAH DOLLS US DISTRICT JUDGE MICHAEL B MUKASEY DISMISSED A LAWSUIT BY THE STEPFATHER OF MARIAH CAREY ALLEGING THAT THE POP STAR AGREED TO GIVE HIM A LICENSE TO MARKET SINGING DOLLS THAT LOOKED LIKE HER UNDERLYING THE LAWSUIT BY JOSEPH VIAN WAS HIS CONTENTION THAT MS CAREY SHOULD SHARE HER EARNINGS WITH HIM BECAUSE HE HELPED HER ACHIEVE STARDOM BY PERFORMING SUCH SERVICES AS PROVIDING TRANSPORTATION TO REHEARSALS AND PAYING FOR DENTAL WORK BUT JUDGE MUKASEY FOUND THAT THERE WAS NO AGREEMENT ALLOWING MR VIAN TO MARKET THE MARIAH DOLLS EDWARD FELSENTHAL CONTRIBUTED TO THIS ARTICLE 9304270050 930427 BUSINESS BRIEF STRATUS COMPUTER INC FIRSTQUARTER NET FALLS 22 THIRDPARTY SALES ARE CITED STRATUS COMPUTER INC CITING SALES DECLINES BY CERTAIN THIRDPARTY DISTRIBUTORS REPORTED A 22 FIRSTQUARTER EARNINGS DROP THE MARLBORO MASS MAKER OF FAULTTOLERANT COMPUTERS SAID FOR THE QUARTER ENDED APRIL 4 IT HAD NET INCOME OF 88 MILLION OR 37 CENTS A SHARE DOWN FROM 114 MILLION OR 49 CENTS A SHARE REVENUE ROSE 4 TO 1146 MILLION FROM 1102 MILLION THE PREVIOUS YEAR THE COMPANY SAID SALES OF ITS COMPUTERS BY INTERNATIONAL BUSINESS MACHINES CORP WERE DOWN 70 AND THOSE BY ITALY'S ING C OLIVETTI DROPPED 76 HOWEVER DIRECT SALES BY STRATUS ITSELF WERE UP 9 WORLDWIDE AND SALES BY THE COMPANY'S INTERNATIONAL DISTRIBUTORS WERE UP 88 PEOPLE ON WALL STREET WEREN'T EXACTLY CELEBRATING BUT THEY WERE QUITE RELIEVED THAT GIVEN THE CURRENT NERVOUS ENVIRONMENT IN THE COMPUTER MARKET STRATUS'S NUMBERS WEREN'T WORSE SAID DAVID WU AN SG WARBURG ANALYST IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE STRATUS SHARES ROSE 625 CENTS TO 2415 9304270049 930427 BUSINESS BRIEF US HEALTHCARE INC HMOS PROVIDE 39 INCREASE IN FIRSTQUARTER EARNINGS US HEALTHCARE INC REPORTED A 39 INCREASE IN FIRSTQUARTER EARNINGS AND A 22 REVENUE INCREASE AS MEMBERSHIP IN ITS HEALTHMAINTENANCE ORGANIZATIONS CONTINUED UPWARD THE COMPANY'S SHARES SURGED YESTERDAY 250 ON THE NEWS TO BE QUOTED AT 4375 IN NATIONAL OVERTHECOUNTER TRADING THE BLUE BELL PA PROVIDER OF MANAGEDCARE SERVICES REPORTED NET OF 63 MILLION OR 58 CENTS A SHARE COMPARED WITH 454 MILLION OR 42 CENTS A SHARE IN THE 1992 FIRST QUARTER REVENUE WAS 6407 MILLION UP FROM 5231 MILLION MEMBERSHIP IN ITS HMOS GREW MORE THAN 12 OR 167000 FROM A YEAR AGO TO A TOTAL OF MORE THAN 15 MILLION MEMBERS AT MARCH 31 THE TOTAL INCLUDES TRANSFER OF 17000 MEMBERS OF HMOS FUNDED BY US EMPLOYERS ON JAN 1 US HEALTHCARE BEGAN OFFERING HMO SERVICES THROUGH EMPLOYERFUNDED PLANS IN ADDITION TO THE 15 MILLION HMO MEMBERS IT SERVES US HEALTHCARE ADMINISTERS OTHER EMPLOYERFUNDED PLANS WITH 112000 MEMBERS THAT NUMBER IS UP FROM 85000 A YEAR EARLIER THE COMPANY'S MEDICALCOST RATIO OR MEDICAL COSTS AS A PERCENTAGE OF PREMIUMS COLLECTED IMPROVED TO 756 FROM 778 IN THE YEAREARLIER QUARTER NET INCOME WAS 98 OF TOTAL REVENUE UP FROM 87 A YEAR AGO 9304270048 930427 INTERNATIONAL BRIEF LUFTHANSA AG AIR CARRIER'S NET LOSS SHRANK WHILE OPERATING LOSS GREW LUFTHANSA AG'S NET LOSS NARROWED IN 1992 EVEN AS ITS OPERATING LOSS SOARED ACCORDING TO THE GERMAN FLAG CARRIER'S INTERNAL MAGAZINE DER LUFTHANSEAT THE MAGAZINE SAID THE 1992 NET LOSS SHRANK 14 TO 380 MILLION MARKS 581 MILLION FROM THE YEAREARLIER LOSS OF 444 MILLION MARKS THE OPERATING LOSS HOWEVER WIDENED TO 12 BILLION MARKS FROM 700 MILLION MARKS THE OPERATING LOSS DOESN'T INCLUDE PROCEEDS FROM THE SALE OF AIRCRAFT BY FRANKFURTBASED LUFTHANSA IN ADDITION LUFTHANSA CHANGED ITS ACCOUNTING PROCEDURES IN SEPTEMBER A MOVE THAT BROUGHT THE CARRIER INTO LINE WITH GENERAL INDUSTRY PRACTICES BUT THAT ALSO WAS EXPECTED TO BOOST THE AIR CARRIER'S BOTTOM LINE BY ABOUT 350 MILLION MARKS IN 1992 UNDER THE NEW ACCOUNTING SYSTEM LUFTHANSA SAID IT WOULD WRITE OFF ITS AIRCRAFT TO 15 OF THEIR VALUE OVER A 12YEAR PERIOD RATHER THAN TO 5 OF THEIR VALUE OVER A 10YEAR PERIOD ALTHOUGH THE FIGURES WERE PUBLISHED BY LUFTHANSA ITSELF IN THE MAGAZINE A SPOKESMAN FOR LUFTHANSA DECLINED TO CONFIRM THE ACCURACY OF ANY INDIVIDUAL FIGURES 9304270047 930427 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 3/16 HIGH 3 1/16 LOW 3 1/16 NEAR CLOSING BID 3 1/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 304 30 TO 119 DAYS 305 120 TO 149 DAYS 307 150 TO 179 DAYS 308 180 TO 249 DAYS 314 250 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 309 30 DAYS 310 60 DAYS 311 90 DAYS CERTIFICATES OF DEPOSIT 258 ONE MONTH 263 TWO MONTHS 267 THREE MONTHS 276 SIX MONTHS293 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 310 SIX MONTHS BANKERS ACCEPTANCES 3 30 DAYS 3 60 DAYS 3 90 DAYS 302 120 DAYS 303 150 DAYS 305 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS3 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 1/2 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 6 GERMANY 850 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY APRIL 26 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 288 13 WEEKS 295 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 715 60 DAYS 725 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4125 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 718 60 DAYS 728 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 495 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 272 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9304270046 930427 INTERNATIONAL BRIEF FUJI BANK OF JAPAN FIRM RAISES PROFIT ESTIMATE FOR YEAR ENDED MARCH 31 FUJI BANK OF JAPAN RAISED ITS PROFIT ESTIMATE FOR THE FISCAL YEAR ENDED MARCH 31 AS THE RECENT JAPANESE STOCK MARKET RECOVERY REDUCED EXPECTED VALUATION LOSSES IN ITS SECURITIES HOLDINGS THE RESULTS WILL STILL BE SHARPLY LOWER THAN THE PREVIOUS FISCAL YEAR'S EARNINGS HOWEVER THE BANK IN TOKYO NOW EXPECTS TO POST CONSOLIDATED PRETAX PROFIT TOTALING 100 BILLION YEN 905 MILLION COMPARED WITH A PREVIOUS ESTIMATE OF 64 BILLION YEN NET INCOME FOR THE LATEST YEAR IS EXPECTED TO TOTAL 58 BILLION YEN COMPARED WITH A PREVIOUS ESTIMATE OF 30 BILLION YEN A FUJI BANK SPOKESMAN SAID GROUP NET INCOME WILL RISE SHARPER THAN EARLIER PROJECTED DUE TO TAX PAYMENTS THAT ARE LIKELY TO BE SMALLER THAN ANTICIPATED IN THE PREVIOUS FISCAL YEAR FUJI BANK'S GROUP PRETAX PROFIT TOTALED 1788 BILLION YEN MEANING THE LATEST YEAR'S RESULTS WOULD BE DOWN 44 NET INCOME UNDER THE LATEST ESTIMATE WILL BE DOWN 37 FROM THE YEAR EARLIER'S 9235 BILLION YEN 9304270045 930427 WHAT'S NEWS BUSINESS AND FINANCE GOLD PRICES SOARED FOR A SECOND DAY DEPRESSING THE BOND MARKET WHILE STOCKS SLUMPED AND THE DOLLAR ENDED MIXED GOLD FUTURES GAINED 630 AN OUNCE TO 35380 AN EIGHTMONTH HIGH THE DOW JONES INDUSTRIALS FELL 1540 POINTS TO 339837 BOND PRICES LOST NEARLY 1/2 POINT INDIVIDUAL INVESTORS' CONFIDENCE IN THE ECONOMY PLUNGED THIS MONTH TO ITS LOWEST LEVEL SINCE BEFORE CLINTON'S ELECTION ACCORDING TO A SURVEY THE SEC HAS IMPROPERLY BEEN ALLOWING COMPANIES TO KEEP CERTAIN SOCIAL POLICY PROPOSALS FROM BEING VOTED ON BY SHAREHOLDERS A JUDGE SAID CLINTON'S HEALTH ADVISERS ARE THINKING INCREASINGLY ABOUT THE IDEA OF COSTCONTROL PACTS BETWEEN THE GOVERNMENT AND THE HEALTH INDUSTRY INSTEAD OF REGULATIONS ON HOW MUCH CAN BE CHARGED BUT THE ADMINISTRATION WANTS POWERS TO FORCE COMPLIANCE WITH THE ACCORDS IBM'S CHAIRMAN LOUIS GERSTNER SIGNALED HE PLANS MORE STAFF CUTS AND GREATER EMPHASIS ON CONSULTING AND SERVICES HE SAID HE DOESN'T ENVISION A WHOLESALE BREAKUP OF THE COMPANY SALES OF EXISTING HOMES FELL 29 IN MARCH TO A NINEMONTH LOW REFLECTING THE EFFECTS OF FLOODS AND SNOWSTORMS ANALYSTS SAID UNDERLYING DEMAND IN THE HOUSING MARKET REMAINS STRONG BUDGET DIRECTOR LEON PANETTA SAID HE HAS GROWN MORE DISCOURAGED IN THE PAST FEW WEEKS ABOUT THE PROSPECTS FOR SERIOUS DEFICIT REDUCTION THIS YEAR DUE TO SHIFTING SENTIMENTS IN CONGRESS THE WORLD ECONOMY REMAINS HESITANT AND UNEVEN THE IMF SAID PREDICTING GLOBAL GROWTH OF 22 THIS YEAR MUCH LESS THAN THE 36 THE AGENCY PROJECTED JUST SIX MONTHS AGO BOEING'S CHAIRMAN IS DECLINING A SALARY INCREASE THIS YEAR CITING LAYOFFS BY THE AEROSPACE GIANT BUT HIS BONUS AND OTHER PAY HAVEN'T BEEN SET SEPARATELY THE COMPANY POSTED A 23 DROP IN FIRSTQUARTER OPERATING PROFIT DETROIT'S TOP AUTO EXECUTIVES PLAN TO MEET TOMORROW WITH SOME CLINTON CABINET OFFICIALS TO START DEVELOPING A STRATEGY TO AID THE AUTO INDUSTRY THE UAW'S PRESIDENT SAID ITS TOP PRIORITY IN CONTRACT TALKS THIS YEAR WILL BE TO PROTECT EXISTING WAGES BENEFITS AND INCOME SECURITY PROVISIONS GIDDINGS & LEWIS'S CHAIRMAN QUIT AFTER DIRECTORS QUESTIONED SEVERAL FINANCIAL TRANSACTIONS BETWEEN HIM AND THE MACHINETOOL MAKER GIDDINGS STOCK PLUNGED 675 OR 25 TO 2050 DISNEY'S PROFIT CLIMBED 25 IN THE LATEST QUARTER BUOYED BY RECORD TICKET SALES FOR ALADDIN AND BETTER THAN EXPECTED RESULTS AT THEME PARKS A CARTERWALLACE UNIT WAS TOLD BY THE FDA TO STOP MARKETING ITS ORGANIDIN RESPIRATORY DRUGS CARTERWALLACE SHARES SANK 3 OR 11 TO 24125 THE SUPREME COURT RULED 81 THAT STATES MAY NOT PROHIBIT ACCOUNTANTS FROM SOLICITING NEW CLIENTS IN PERSON THE FDA THREATENED TO ACT AGAINST SIX MAJOR MANUFACTURERS AND DISTRIBUTORS OF HEARING AIDS IF THEY DON'T STOP MAKING ALLEGEDLY MISLEADING CLAIMS SMITHKLINE SAID ITS CHAIRMAN HENRY WENDT AND CEO ROBERT BAUMAN WILL STEP DOWN FROM THEIR POSTS AT THE DRUG GIANT A YEAR FROM NOW BONDS LEHMAN BROTHERS TREASURY INDEX 509238 OFF 2038 COMMODITIES OIL 2030 A BARREL OFF FOUR CENTS DOW JONES FUTURES INDEX 12518 UP 071 SPOT INDEX 12190 UP 112 DOLLAR 11055 YEN UP 005 15688 MARKS OFF 00137 9304270044 930427 JAPANESE VEHICLE OUTPUT EASES TOKYO JAPAN'S PRODUCTION OF CARS TRUCKS AND BUSES SLIPPED 1 IN MARCH FROM A YEAR EARLIER TO 1164170 UNITS THE SIXTH CONSECUTIVE MONTHLY DECLINE THE JAPAN AUTOMOBILE MANUFACTURERS' ASSOCIATION SAID JAPAN'S VEHICLE PRODUCTION FOR THE FISCAL YEAR ENDED MARCH 31 WAS DOWN 62 TO 12334999 UNITS THE DECLINE WAS THE SHARPEST SINCE THE FISCAL YEAR THAT ENDED MARCH 1975 WHEN OUTPUT FELL 7 BUT THE PACE OF DECLINE IN MARCH AND FEBRUARY WHEN PRODUCTION FELL 12 WASN'T NEARLY AS STEEP AS JANUARY'S 14 PLUNGE AND DECEMBER'S 97 DROP 9304270043 930427 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY KEVIN G SALWEN ALUMNI FLOOD CAMPUSES FOR CAREER COUNSELING IN THE STAGNANT JOB MARKET FOR COLLEGES IT IS GOOD PUBLIC RELATIONS AND A CHANCE TO SECURE FUTURE ALUMNI CONTRIBUTIONS FOR EXSTUDENTS IT IS A COMFORTABLE HAVEN AND SOURCE OF LEADS AMHERST COLLEGE SAYS USE OF ITS CAREER CENTER HAS DOUBLED IN FIVE YEARS THE UNIVERSITY OF PENNSYLVANIA SEES A 25 JUMP IN ALUMNI TRAFFIC IN THE PAST YEAR MANY OF THOSE FLOCKING BACK HAVE BEEN OUT OF THE NEST FIVE YEARS OR LESS NEW YORK UNIVERSITY AND GEORGE WASHINGTON BEGIN CHARGING FOR THE SERVICE EACH FRIDAY AT 8 AM UCLA SCHEDULES APPOINTMENTS TO SEE ITS COUNSELORS THE FOLLOWING WEEK THEY ARE ALL BOOKED UP BY 810 AM A YEAR AGO IT TOOK THREE DAYS TO FILL ALL OF THE TIME SLOTS IT IS TO THE POINT WHERE WE'RE AT A LOSS TO MANAGE IT SAYS WALTER BROWN WHO RUNS THE PROGRAM WELLESLEY COLLEGE SUBCONTRACTS SOME OF ITS COUNSELING FOR ALUMNI IN CALIFORNIA TO A PRIVATE FIRM I KEEP A BOX OF KLEENEX BEHIND MY CREDENZA FOR PEOPLE WHO COME IN FEELING LIKE THEIR LEGS HAVE JUST BEEN CUT OFF SAYS VICTOR LINDQUIST OF NORTHWESTERN UNIVERSITY WHERE ALUMNI TRAFFIC IS UP 30 FROM 1990 THE VOTE MUST GO ON FOR THIS NATIONAL LABOR RELATIONS BOARD OFFICIAL GLENDA ZAIM A FIELD EXAMINER FOR THE NLRB IN SOUTHERN CALIFORNIA THOUGHT SHE WAS HEADED FOR A ROUTINE VOTE COUNT AT SMITH'S BAKERIES IN BAKERSFIELD BUT WHEN SHE WALKED IN THE DOOR SHE STOOD FACE TO FACE WITH A ROBBER HOLDING A SAWEDOFF SHOTGUN ARMED ONLY WITH HER GOVERNMENT BADGE A SEALED BALLOT BOX AND PORTABLE VOTING BOOTH MS ZAIM WAS ORDERED TO LIE ON THE FLOOR IN THE BACK ROOM WITH SEVERAL WORKERS AFTER MS ZAIM'S HANDS WERE TIED BEHIND HER THE ROBBER REMOVED HER GOLD NECKLACE PURSE AND SOME MONEY THEN LEFT THE BAKERY THE POLICE WERE QUICKLY CALLED AFTER THE CRIME SCENE WAS SURVEYED MS ZAIM SUMMONED THE WORKERS TO CAST THEIR BALLOTS AND THE ELECTION WAS COMPLETED THE UNITED FOOD AND COMMERCIAL WORKERS WON 2212 TEACHERS' SALARIES INCH HIGHER BUT VARY WIDELY BY STATE THE AVERAGE WAGE FOR ELEMENTARY AND SECONDARYSCHOOL TEACHERS ROSE 36 TO 35334 IN THE PAST YEAR THE NATIONAL EDUCATION ASSOCIATION REPORTS CONNECTICUT CONTINUES TO PAY THE MOST TEACHERS THERE EARN AN AVERAGE 48850 SOUTH DAKOTA RANKS LAST WITH AN AVERAGE 24125 WEST VIRGINIA GAVE TEACHERS THE BIGGEST RAISE 10 LAST YEAR WHILE ONLY THE DISTRICT OF COLUMBIA AND NEW MEXICO TRIMMED EDUCATORS' PAY BUT SALARIES LOOK FAR WORSE WHEN INFLATION IS TAKEN INTO ACCOUNT ARGUES THE NEA THE LARGEST TEACHERS' UNION WHILE EDUCATORS' EARNINGS MORE THAN TRIPLED IN THE PAST TWO DECADES THEY BARELY BUDGED AFTER INFLATION THE AVERAGE SALARY GAINED ONLY 1466 AFTER INFLATION OR 64 SINCE 1973 IN A SEPARATE LOOK AT PENNSYLVANIA SCHOOL TEACHERS PENN STATE RESEARCHERS SAY WOMEN ARE MORE LIKELY TO BE SATISFIED WITH THEIR JOBS DEATHS ON THE JOB TEXAS AND CALIFORNIA HAD THE MOST WORKRELATED FATALITIES DURING THE 1980S THE NATIONAL INSTITUTE FOR OCCUPATIONAL SAFETY AND HEALTH SAYS EACH STATE HAD MORE THAN 6600 OR MORE THAN 10 OF THE US TOTAL FOR THE DECADE THE HIGHEST DEATH RATES WERE IN ALASKA WYOMING AND MONTANA SAYS THE REPORT WHICH COINCIDES WITH TOMORROW'S WORKER'S MEMORIAL DAY WORKPLACES GET SAFER BUT CLAIMS ARE MORE EXPENSIVE A NEW STUDY SHOWS THE AVERAGE NUMBER OF WORKERS' COMPENSATION CLAIMS SLIPPED TO 101 FOR EACH 100 EMPLOYEES IN 1991 FROM 109 TWO YEARS EARLIER THE JOHNSON & HIGGINS REPORT SAYS BUT EMPLOYERS' COST PER CLAIM JUMPED 35 IN THE PERIOD THE SURVEY OF 700 COMPANIES FOUND THE NLRB BECOMES CLINTON'S FOR THE TAKING BOARD MEMBER CLIFFORD OVIATT JR SETS HIS RESIGNATION FOR MAY 28 THAT WILL LEAVE THREE OF THE FIVE SEATS OPEN IN ADDITION THE TERM OF JERRY HUNTER WHO HOLDS THE POWERFUL GENERAL COUNSEL SLOT WILL EXPIRE IN NOVEMBER COMPANIES LEAN ON EMPLOYEES TO BE MORE ENVIRONMENTALLY CONSCIOUS MANY FIRMS RECYCLE PAPER CANS AND BOTTLES AND SOME ASK EMPLOYEES TO DO TWOSIDED COPYING OR TO PARTICIPATE IN HIGHWAY OR PARK CLEANUPS BUT MANY GO FURTHER TEXAS INSTRUMENTS ADDS TO ITS RECYCLING LIST LASERPRINTER CARTRIDGES 12000 A YEAR CLEAN ROOM BOOTIES AND POLYSTYRENE AND POLYURETHANE FROM PACKAGING MILES INC SET A PROGRAM IN 1986 TO CUT WASTE 50 BY THE END OF 1993 AT THE END OF '92 IT WAS AT 44 OTHERS LOOK FOR WAYS TO GENERATE MONEY FOR THE ENVIRONMENT AT BEN & JERRY'S A GREEN TEAM EMPLOYEES' GROUP SPONSORS AN ANNUAL GREEN FLEA MARKET WITH PROCEEDS GOING TO ENVIRONMENTAL ORGANIZATIONS BOSTON EDISON PROVIDES EMPLOYEES WITH VOLUNTARYDONATION FORMS TO THE ENVIRONMENTAL FEDERATION OF NEW ENGLAND IT WILL MATCH THE CONTRIBUTIONS IT IS THE FIRST TIME THE COMPANY HAS SANCTIONED FUND RAISING OTHER THAN THE UNITED WAY THE NEW ENGLAND ENVIRONMENTAL GROUP IS PRODDING COMPANIES TO OFFER PAYROLL DEDUCTION DONATIONS THE CHECKOFF HOW CONTENTIOUS WAS THE JUSTSETTLED GREYHOUND STRIKE THE NLRB'S MR HUNTER SAYS 50 OF THE AGENCY'S 52 REGIONAL OFFICES GOT INVOLVED LEAVING OUT ONLY HAWAII AND PUERTO RICO CALLING THE NAVY'S TAILHOOK SCANDAL AN EXCELLENT EXAMPLE OF A HOSTILE WORK ENVIRONMENT BARBARA POPE THE FORMER ASSISTANT NAVY SECRETARY WHO HELPED INVESTIGATE THE SEX SCANDAL BECOMES HEAD OF THE FOUNDATION FOR THE PREVENTION OF SEXUAL HARASSMENT 9304270042 930427 TECHNOLOGY BY KEN YAMADA WITH LITTLE MYSTERY DETECTIVES MAY SOMEDAY SOLVE WHODUNITS IN MINUTES WITH A SMALL PORTABLE COMPUTER DIGITAL BIOMETRICS MINNETONKA MINN HAS DEVELOPED A PORTABLE COMPUTER THE SIZE OF A FAT NOTEBOOK DESIGNED TO RECORD FINGERPRINTS AND SNAP MUG SHOTS AND THEN ZAP THEM THROUGH A WIRELESS NETWORK TO FEDERAL AUTHORITIES FOR QUICK IDENTIFICATION THE THREEPOUND DEVICE IS CURRENTLY BEING CONSIDERED FOR USE IN A NEW COMPUTER NETWORK PLANNED BY THE FEDERAL BUREAU OF INVESTIGATION FOR OPERATION BY THE END OF THIS DECADE THE DEVICE CALLED THE FC7 SQUAD CAR IDENTIFICATION SYSTEM OR SQUID USES A TINY CAMERA TO SNAP MUG SHOTS AND A TINY LENS TO CAPTURE THE PRINT OF A FINGER PRESSED AGAINST IT IN MINUTES AN OFFICER IN THE FIELD CAN RECORD THE PRINTS WHICH ARE PROCESSED BY A MOTOROLA COMPUTER CHIP INSIDE THE DEVICE TRANSMITTED OVER RADIO WAVES TO A NEARBY PATROL CAR AND THEN BOUNCED TO A POLICE STATION FROM THERE THE PRINTS WOULD BE SENT OVER A NATIONAL COMPUTER NETWORK TO FEDERAL AUTHORITIES WHO WOULD RELAY BACK PERTINENT INFORMATION DIGITAL BIOMETRICS HASN'T SET AN EXACT PRICE YET BUT IT SAYS THE DEVICE WILL PROBABLY SELL FOR A FEW THOUSAND DOLLARS GLENN FISHBINE A DIGITAL BIOMETRICS SENIOR VICE PRESIDENT SAID THE TECHNOLOGY REFLECTS NOT THE ENCROACHMENT OF BIG BROTHER BUT MODERNDAY REALITIES IT USED TO BE YOU COULD BUY A HOUSE ON YOUR WORD AS A GENTLEMAN OR CASH A CHECK BASED ON YOUR SIGNATURE HE SAYS NOW YOUR IDENTITY HAS TO BE VERIFIED FOR POLICE THE DEVICE COULD BE AN AID BUT NOT A REPLACEMENT FOR DETECTIVE WORK SAYS EDWARD O'REILLY A CHICAGO POLICE SERGEANT IT'S NOT GOING TO SOLVE EVERYTHING COMING SOON TO HOMES IN THE 1950S MORTIMER MARKS HELPED DEVELOP 3D MOVIE TECHNOLOGY THAT THRILLED AUDIENCES WITH HORRORS THAT SEEMED TO LEAP FROM THE SCREEN NOW HE'S HOPING TO THRILL TV VIEWERS THE 80YEAROLD MR MARKS HAS DEVELOPED A THREEDIMENSIONAL TV SYSTEM BASED ON A BOXLIKE DEVICE THAT FITS OVER THE LENS OF A CONVENTIONAL TV CAMERA INSIDE THE DEVICE ARE TWO MIRRORS ONE OF WHICH IS MOTORIZED ALLOWING IT TO CAPTURE ANGLES OF IMAGES UNSEEN ON CONVENTIONAL TV IT'S THE NEXT STEP AFTER COLOR MR MARKS CLAIMS SPECIALLY MADE GLASSES ARE NEEDED TO VIEW THE IMAGES IN 3D MR MARKS WHO DEVELOPED EARLY VERSIONS OF THE GLASSES IN THE 1950S IS HOPING TO ELIMINATE THE NEED FOR GLASSES BY DEVELOPING A PLASTIC FILM THAT VIEWERS COULD STICK ON THEIR HOME TV SCREENS EVEN IF VIEWERS DON'T USE THE GLASSES OR FILTER MR MARKS SAYS BROADCASTS BASED ON HIS SYSTEM PRODUCE A CLEAR PICTURE UNLIKE THE BLURRY IMAGES CREATED BY OTHER 3D SYSTEMS BUT HOLLYWOOD REMAINS UNIMPRESSED JAY DUBIN AN INDEPENDENT TV DIRECTOR IS CONSIDERING THE SYSTEM FOR USE IN A CHILDREN'S SHOW MERELY AS AN ATTENTIONGETTER HE SAYS IT'S A GADGETY GIMMICK DONALD MORRIS DREAMED OF FLYING FIGHTER JETS BUT INSTEAD CREATED A WAY FOR DREAMERS TO FLY MR MORRIS BUILT AN ARCADE VERSION OF THE SOPHISTICATED FLIGHT SIMULATORS USED TO TRAIN REAL PILOTS HIS COMPANY MAGIC EDGE IN MOUNTAIN VIEW CALIF PLANS TO USE THE CONTRAPTIONS AS THE CENTERPIECE OF ARCADES THAT HE HOPES WILL REPRESENT A NEW CLASS OF HIGHTECH ENTERTAINMENT WITH 2 MILLION RAISED FROM PRIVATE INVESTORS MR MORRIS FORMERLY A HEWLETTPACKARD DESIGNER AND SUN MICROSYSTEMS MANAGER BUILT THE SYSTEM WHICH LOOKS LIKE A JET COCKPIT INSIDE A FIBERGLASS POD MOUNTED ON HYDRAULIC LIFTS IT USES A SPEEDY WORKSTATION MADE BY SILICON GRAPHICS ALSO BASED IN MOUNTAIN VIEW THAT ALLOWS MULTIPLE PLAYERS SITTING INSIDE DIFFERENT PODS TO COMPETE TOGETHER IN ONE AERIAL DOGFIGHT MAGIC EDGE PLANS TO OPEN ITS FIRST ARCADE LATE THIS YEAR NEAR ITS HEADQUARTERS AND HOPES TO ATTRACT CORPORATIONS FOR TEAMWORK SESSIONS AND PARTIES AS WELL AS THRILL SEEKERS OF VARIOUS AGES IT ALSO HOPES TO SELL TO OTHER OPERATORS MAGIC EDGE IS BANKING THAT ARCADE PLAYERS WILL PAY ABOUT 24 EACH FOR A 45MINUTE EXPERIENCE THAT INCLUDES INSTRUCTION A 20MINUTE FLIGHT AND POSTGAME POINTERS THAT'S EXPENSIVE ENTERTAINMENT FOR AN UNPROVEN MARKET BUT ACCORDING TO MICHAEL CHAN THE COMPANY'S CHIEF EXECUTIVE OFFICER WE'RE NOT HERE SELLING POPCORN WE'RE HERE SELLING A MEAL TRIMBLE NAVIGATION IN SUNNYVALE CALIF SAYS IT ISN'T INTERESTED IN DEVELOPING ITS COMPUTERIZED NAVIGATIONAL EQUIPMENT CALLED GLOBAL POSITIONING SYSTEMS FOR MASS CONSUMERS WITH HANDHELD COMPUTERS BECAUSE RESEARCH HAS SHOWN THAT MOST AMERICANS CAN'T READ MAPS WHICH IS THE BASIC SKILL NEEDED TO USE THE TECHNOLOGY THE BOTRIMBLE NAVIGATION SYSTEM WILL REMAIN IN THE HANDS OF MARINERS AND OTHER NAVIGATORS THE NUMBER OF MERGERS AND ACQUISITIONS INVOLVING SOFTWARE COMPANIES FELL 23 LAST YEAR FROM 1991 TO 150 TRANSACTIONS ACCORDING TO A SURVEY BY BROADVIEW ASSOCIATES AN INVESTMENT BANK 9304270041 930427 INTERNATIONAL BRIEF MATRAHACHETTE SA FIRM'S 663 MILLION PROFIT FOR 1992 REVERSES 1991 LOSS MATRAHACHETTE SA THE FRENCH DEFENSE ELECTRONICS MEDIA AND PUBLISHING GROUP POSTED A CONSOLIDATED PROFIT FOR 1992 OF 354 MILLION FRENCH FRANCS 663 MILLION COMPARED WITH A PROFORMA LOSS OF 168 BILLION FRANCS A YEAR EARLIER THE COMPANY IN PARIS SAID IT STILL EXPECTS A SHARP RISE IN PROFIT THIS YEAR DESPITE THE DEPRESSED STATE OF ITS OPERATING ENVIRONMENT THE 1992 RESULT IS IN LINE WITH THE COMPANY'S OWN ESTIMATE MADE IN FEBRUARY MATRAHACHETTE POINTED OUT THAT THE COMPARISON TO 1991 ISN'T SIGNIFICANT BECAUSE OF THE MERGER OF THE MATRA AND HACHETTE GROUPS IN THE COURSE OF LAST YEAR CONSOLIDATED REVENUE ROSE 37 TO 5510 BILLION FRANCS BUT ON A COMPARABLE GROUP STRUCTURE BASIS THE INCREASE WAS 56 MATRAHACHETTE SAID IT PLANS TO PAY A NET DIVIDEND OF 22 FRANCS A SHARE UNDER THE TERMS OF THE SHARE SWAP AGREED FOR THE MERGER OF MATRA AND HACHETTE MATRA SHAREHOLDERS WILL RECEIVE A NET DIVIDEND OF 572 FRANCS REPRESENTING 22 FRANCS MULTIPLIED BY 26 9304270040 930427 TOUGH GUYS REGULATORS FROM HELL' FRIGHTEN SOME BANKS BUT ALSO WIN PRAISE DO OFFICIALS LIKE BRIAN LOOFT PREVENT ANOTHER CRISIS OR CAUSE A CREDIT CRUNCH AN ISSUE OF BEDSIDE MANNER' BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL IN A STRATEGY SESSION WITH COLLEAGUES A CALIFORNIA BANK EXECUTIVE RECENTLY LISTED ON A CHALKBOARD THE PROBLEMS FACING THE BANK AFTER INCREASED COMPETITION AND DEPOSITS LOST TO LOW INTEREST RATES HE WROTE GEORGE MASA HIS AUDIENCE UNDERSTOOD AS DIRECTOR OF THE FEDERAL DEPOSIT INSURANCE CORP'S SAN FRANCISCO REGION MR MASA HOLDS SWAY OVER 526 BANKS EVER SINCE HE ASSUMED HIS POSITION A YEAR AND A HALF AGO CRITICS SAY HIS FIELD EXAMINERS HAVE ACTED AS THOUGH A TEXASSTYLE BANKING DISASTER WERE THREATENING THE WEST COAST HE'S DOUBLED THE INTENSITY OF EXAMS OUT HERE SAYS ROBERT DICKEY A SANTA BARBARA BANKING CONSULTANT MOREOVER IN GIVING BANKS A FINAL GRADE MR MASA AND HIS DEPUTIES SOMETIMES DELIVER A HARSHER MARK THAN RECOMMENDED BY FIELD EXAMINERS SAY MR DICKEY AND BANKERS WHO SAY THEY HAVE HAD IT HAPPEN TO THEM MR MASA IS ONE OF WHAT BANKERS CALL REGULATORS FROM HELL THESE ARE EXAMINERS OR EXAMINERS' BOSSES WHO SOME BANKERS CONTEND ARE PUTTING A CHILL ON LENDING AND IMPERILING THE ECONOMIC RECOVERY REGULATORS CAN DECIDE WHETHER A BANK FAILS OR IS SHACKLED WITH OPERATING RESTRAINTS WHETHER MANAGEMENT SHOULD BE SHOWN THE DOOR AND WHETHER BANK DIRECTORS ARE SURPRISED AT THEIR HOMES WITH LETTERS ASKING FOR AN ACCOUNTING OF THEIR PERSONAL ASSETS OBSERVERS SAY REGULATORS ARE EXERCISING THEIR POWER WITH AN UNPRECEDENTED LACK OF RESTRAINT DAVID BIZER DEPUTY CHIEF ECONOMIST FOR THE SECURITIES AND EXCHANGE COMMISSION RECENTLY COMPARED REGULATOR EXAMINATIONS AGAINST BANK BALANCE SHEETS QUARTER BY QUARTER FOR FOUR YEARS BEGINNING IN MID1988 HIS CONCLUSION EXAMINER RATINGS WENT DOWN IN A WAY THAT CANNOT BE EXPLAINED BY CHANGES IN BALANCE SHEETS REGIONAL ECONOMIC CONDITIONS OR THE FALL IN REALESTATE PRICES FOR THEIR PART THE REGULATORS AND EXAMINERS SAY THEY ARE JUST DOING THE MORE DETAILED JOB CONGRESS REQUIRES I DISPUTE THAT WE ARE GOING OVERBOARD SAYS MR MASA WHO NOTES THAT THE SHAKY CALIFORNIA ECONOMY STILL CALLS FOR A STATE OF ALERT ALTHOUGH BANKERS ARE FULLY AWARE THAT CONGRESS HAS PASSED NEW LAWS REQUIRING TOUGHER BANK EXAMINATIONS THEY FAULT THE SYSTEM FOR GIVING REGULATORS TOO MUCH LATITUDE IN INTERPRETING THOSE LAWS AS FOR NAMING PARTICULARLY AGGRESSIVE REGULATORS BANKERS ARE AFRAID TO DO SO IN ONTHERECORD INTERVIEWS FOR FEAR OF RETRIBUTION BUT DURING INFORMAL DISCUSSIONS AMONG BANKERS LAWYERS AND CONSULTANTS CERTAIN NAMES COME UP AGAIN AND AGAIN IN NEW ENGLAND FOR INSTANCE JIMMY LOYLESS ASSISTANT REGIONAL FDIC DIRECTOR IS WIDELY CONSIDERED TOO TOUGH IN TEXAS IT IS TERRY QUANSTROM A SENIOR FDIC EXAMINER WHO GIVES BANKERS FITS THE IMPROVED HEALTH OF THE BANKING INDUSTRY HAS BROUGHT SOME REGULATORY RELIEF FOR BANKERS AND PRESIDENT CLINTON HAS DRAWN UP A PLAN TO EASE THEIR BURDEN STILL MORE THROUGH SUCH MEASURES AS LENGTHENING THE HORIZON FOR VALUING REAL ESTATE BUT EVEN AS THE PRESIDENT ANNOUNCED HIS PLAN IN FEBRUARY THE GENERAL ACCOUNTING OFFICE UNVEILED A STUDY SUGGESTING THAT EXAMINERS' METHODS WEREN'T THOROUGH ENOUGH TO ENSURE AN ACCURATE PICTURE OF A BANK'S SOUNDNESS THE SIMULTANEOUS CALLS FOR MORE RELAXED AND MORE STRINGENT REGULATION PUT BANK EXAMINERS IN AN IMPOSSIBLE SITUATION SAYS FORMER COMPTROLLER OF THE CURRENCY ROBERT CLARKE ROBERT REDDISH A SENIOR FDIC EXAMINER IN DALLAS SAYS WE RECOGNIZE THE REGULATORY BURDEN BANKS ARE UNDER BUT THERE IS A SIGNAL TO BE TOUGHER AND WE HAVE A MISSION TO ACCOMPLISH WE'RE WALKING A FINE LINE A BANK TYPICALLY IS EXAMINED AT LEAST ONCE A YEAR BY STATE AND FEDERAL REGULATORS IN ALL ABOUT 7000 BANK EXAMINERS OVERSEE MORE THAN 12000 BANKS AND THE REMNANTS OF THE THRIFT INDUSTRY IF AN EXAMINER CLASSIFIES A LOAN FINDS IT DEFICIENT IN SOME WAY THE BANK CAN BE ASKED TO SET ASIDE RESERVES FOR A POSSIBLE LOSS THAT IN TURN CAN REDUCE THE INSTITUTION'S EARNINGS AND CAPITAL IN MISSOURI SOME BANKERS SAY THE PROBLEM HAS A NAME BRIAN LOOFT A UNIVERSITY OF IOWA GRADUATE IN HIS EARLY 30S MR LOOFT IS A SENIOR FDIC FIELD EXAMINER WHO FRIGHTENS BANKERS WITH A BRUSQUE HARDNOSED BYTHEBOOK STYLE HE'S THE FDIC EXAMINER EVERYONE DREADS TO SEE IN WESTERN MISSOURI SAYS ONE BANKER ANOTHER MISSOURI BANK EXECUTIVE ASSERTS THAT MR LOOFT ONCE CRITICIZED HIS BANK FOR DISPLAYING THE REQUIRED FDIC LOGO ON ONLY THREE OF ITS FOUR TELLER WINDOWS AND FOR ALLOWING A LOAN APPLICANT TO LEAVE THE AGE BOX BLANK IN EXAMINING THE BANK OF JACOMO IN BLUE SPRINGS MO MR LOOFT CAME IN LIKE GANGBUSTERS AS IF HE WAS TRYING TO CATCH US AT SOMETHING SAYS RICHARD PRYOR WHO RETIRED RECENTLY AS PRESIDENT OF THE BANK THOUGH MR LOOFT FOUND NO EVIDENCE OF WRONGDOING IN THE 1990 EXAM HE ATTACHED TO SOME LOANS A LOWER VALUATION THAN HAD THE BANK INFURIATING MR PRYOR BY THE TIME HE LEFT WE WERE HARDLY SPEAKING MR PRYOR SAYS ANOTHER FORMER BANK PRESIDENT IN BLUE SPRINGS CHARLES QUALKINBUSH SAYS MR LOOFT QUIZZED HIM ABOUT HIS EDUCATIONAL BACKGROUND WHEN THE BANKER SAID HE HAD ONLY FINISHED HIGH SCHOOL HE SAYS MR LOOFT WHO HAD BOASTED OF HIS COLLEGE DEGREE SAID EVERYONE SHOULD GO TO COLLEGE MR LOOFT DIDN'T RETURN A PHONE CALL TO HIS OFFICE SEEKING COMMENT AND HIS BOSS JAMES LEESE KANSAS CITY FDIC REGIONAL DIRECTOR DECLINED TO LET MR LOOFT SPEAK TO A REPORTER MR LEESE SAYS NOT EVERYONE HAS THE SAME BEDSIDE MANNER MR LOOFT GETS THE RIGHT ANSWERS AND I HAVE CONFIDENCE IN HIS ABILITY JERRY SWORDS A KANSAS CITY BANKING CONSULTANT ADDS WE'VE GONE INTO A COUPLE OF BANKS WHERE MR LOOFT HAS BEEN AND HIS ANALYSIS WAS RIGHT ON TARGET MR QUANSTROM THE TEXAS EXAMINER TAKES PRIDE IN HIS REALESTATE EXPERTISE AND IS CONSIDERED COCKY AND OVERZEALOUS BY HIS BANKER CRITICS WORKING OUT OF THE FDIC'S FORT WORTH OFFICE HE WEARS COWBOY BOOTS CHAINSMOKES AND HAS LITTLE TO SAY TO BANKERS DURING EXAMINATIONS IN ONE RECENT EXAM WHEN THE PRESIDENT OF A TEXAS BANK PROTESTED MR QUANSTROM'S WRITEDOWN OF SOME REAL ESTATE BACKING A LOAN HE SLAMMED THE LOAN PORTFOLIO SHUT SAID THESE DISCUSSIONS ARE GOING NOWHERE' AND WALKED OUT SAYS THE BANK PRESIDENT THAT WAS AFTER TELLING THE BANKER HE WAS FIRST IN HIS CLASS AT THE FDIC'S REALESTATE TRAINING SCHOOL THE BANKER SAYS MR QUANSTROM REFERRED A CALL TO HIS REGIONAL DIRECTOR KENNETH WALKER WHO DESCRIBED MR QUANSTROM AS A HIGHLY QUALIFIED SENIOR EXAMINER BUT WOULDN'T LET HIM COMMENT MR REDDISH THE DALLAS EXAMINER DEFENDS A REGULATOR'S RIGHT TO OVERRULE APPRAISERS TO IGNORE OTHER DATA OF HIS OWN WOULD BE REMISS SAYS MR REDDISH SOME BANKERS RESPECT MR QUANSTROM JAMES CHAMBERS PRESIDENT OF THE TOWN AND COUNTRY BANK IN STEPHENVILLE TEXAS SAYS IN THE HEAT OF THE MOMENT I COULD HAVE STRANGLED HIM BUT HE WAS PROBABLY THE BEST THING THAT HAPPENED TO THIS BANK ANOTHER BANKER SAYS THAT IF MR QUANSTROM HADN'T FORCED HIM TO INCREASE LOAN LOSS RESERVES AND CURB LENDING PRACTICES WE MIGHT HAVE WOKEN UP TOO LATE BANKERS FEAR THAT RETRIBUTION WILL FOLLOW ANY COMPLAINT ABOUT REGULATORS IF YOU QUOTE ME BY NAME THEY'LL COME IN AND TAN MY HIDE SAYS A TEXAS BANKER WHO IS CRITICAL OF MR QUANSTROM I COMPLAINED ONCE FOUR YEARS AGO AND I'VE BEEN PAYING THE PRICE EVER SINCE THEY'RE LIKE A BIG FRATERNITY ALTHOUGH REGULATORY OFFICIALS INCLUDING MR QUANSTROM'S BOSS MR WALKER SAY COMPLAINERS AREN'T PUNISHED OTHERS AREN'T SO SURE A RECENT SALOMON BROTHERS RESEARCH REPORT QUESTIONED THE LIKELY SUCCESS OF THE CLINTON PROPOSAL FOR FORMAL REVIEWS NOTING THAT A BANK THAT GETS ITS EXAMINER OVERRIDDEN MUST STILL LIVE WITH HIM IT WASN'T LONG AGO THAT REGULATORS WERE TAKING HEAT FOR NOT AVERTING THE SAVINGSANDLOAN DEBACLE AND REGIONAL BANKING CRISIS OF THE 1980S HARDENED BY THE CRITICISM AND THE NEW TOUGH LAWS STORM TROOPERS AS THE BANKERS CALLED THEM FROM THE COMPTROLLER OF THE CURRENCY'S OFFICE LED THE CHARGE BEGINNING IN THE LATE 1980S INTO GREATER SCRUTINY OF THE BIG NATIONAL BANKS NOW EXAMINERS FROM THE FDIC ARE RAISING THE HURDLE FOR THOUSANDS OF SMALLER BANKS UNDER ITS JURISDICTION BANKERS COMPLAIN THAT REGULATION IS SUBJECTIVE AND INCONSISTENT TWO BANKS CAN BE IN TROUBLE ONE GETS AWAY WITH A MILD INFORMAL AGREEMENT THE OTHER GETS THE WRATH OF GOD ALL THE WAY TO A DETAILED MEMORANDUM OF UNDERSTANDING AND THREATS OF CIVIL PENALTIES AGAINST ITS DIRECTORS SAYS EDWARD FURASH A WASHINGTON DC CONSULTANT THE DIFFERENCE HE SAYS MAY SIMPLY BE A MATTER OF THE RAPPORT BANKS HAVE WITH EXAMINERS IN EXIT INTERVIEWS AFTER A TEAM OF EXAMINERS HAS SPENT WEEKS PORING OVER LENDING AND OTHER DOCUMENTS SOME BANKS HAVE BEEN TOLD TO EXPECT A POSITIVE GRADE ONLY TO GET A HARSHER ONE IN A FINAL REPORT MR MASA IN CALIFORNIA SAYS SUPERVISORS OCCASIONALLY ARE OBLIGATED TO GIVE TOUGHER GRADES THAN RECOMMENDED BY EXAMINERS THE EXAMINER'S JOB IS TO IDENTIFY PROBLEMS HE EXPLAINS AND OUR JOB IS TO MAKE THE FINAL DECISION REGARDING SUPERVISORY ACTION AND A BANK'S RATING IN THE 18 MONTHS THAT MR LOYLESS HAS HAD DIRECT SUPERVISION OVER THE CONCORD NH FDIC OFFICE A BANKING EXPERT IN THE AREA SAYS FIELD EXAMINERS' RATINGS HAVE BEEN OVERRULED IN FAVOR OF TOUGHER RATINGS AT LEAST THREE TIMES OUT OF ABOUT 40 EXAMINATIONS SUCH ACTIONS HE ADDS LEAD OTHER EXAMINERS TO GIVE TOUGHER GRADES FOR FEAR OF BEING OVERRULED MR LOYLESS SAYS HE CAN RECALL DOWNGRADING AN EXAMINER'S RECOMMENDATION ONLY TWICE AND HAS SOMETIMES GONE THE OPPOSITE WAY MR LOYLESS IS ONE EXAMINER WHOM SOME BANKERS LOVE TO HATE TO SOME EXTENT THAT IS NOT SURPRISING BECAUSE IT IS MR LOYLESS'S JOB TO TELL EXECUTIVES AND DIRECTORS OF LOWSCORING BANKS IN HIS REGION PRECISELY HOW WHY AND BY WHEN THEIR INSTITUTIONS MUST BE SHAPED UP BUT HIS CRITICS SAY HE IS UNNECESSARILY CONFRONTATIONAL OVERBEARING AND VINDICTIVE IN NEW HAMPSHIRE I HAVE HAD MANY REPORTS BY BANKERS OF HEAVYHANDEDNESS BY THE FDIC IN IMPLEMENTING LAWS PASSED BY CONGRESS SAYS REP BILL ZELIFF A NEW HAMPSHIRE REPUBLICAN WHO CALLED A MEETING IN HIS OFFICE IN FEBRUARY OF SENIOR FDIC OFFICIALS AND STATE BUSINESS LEADERS BANKERS THEMSELVES DECLINED TO ATTEND BECAUSE THEY ARE SCARED TO DEATH SAYS REP ZELIFF HE WON'T SAY WHICH REGULATORS HAVE BEEN ACCUSED OF HEAVYHANDEDNESS BUT HIS CONSTITUENCY INCLUDES THE AREA OVER WHICH MR LOYLESS PRESIDES AT A HEARING IN THE NEW HAMPSHIRE LEGISLATURE STATE SEN PETE BLAISDELL ASSERTED THAT A CERTAIN FDIC OFFICIAL SHOULD GET THE HELL OUT OF THE STATE SO WE CAN GET OUR BANKS TO LOAN MONEY TO OUR PEOPLE AMONG OTHER THINGS SEN BLAISDELL SAID THE OFFICIAL WAS TELLING BANKS THAT CHARACTER LOANS BASED ON A BANKER'S TRUST OF A BORROWER WERE NO GOOD IN AN INTERVIEW SEN BLAISDELL CONFIRMS THAT HE WAS REFERRING TO MR LOYLESS MR LOYLESS A DIMINUTIVE 39YEAROLD GEORGIA NATIVE DENIES WARNING BANKERS AGAINST CHARACTER LOANS BUT HE CONCEDES THAT HE HAS TOLD FRIENDS THAT IF SOME OF THE CHARACTERS THAT WERE LOANED MONEY IN THE PAST REPAID THEIR DEBTS THEN THERE MIGHT BE MORE FUNDS TO LEND NOW AS FOR CHARGES THAT HIS ATTITUDE IS A CONTRIBUTOR TO A CREDIT CRUNCH MR LOYLESS MAINTAINS BUSINESS LENDING IS PICKING UP IN THE STATE HE ALSO SAYS HE SUSPECTS THAT THOSE POINTING THE FINGERS ARE THE ONES TO BLAME FOR THE PROBLEMS AND ARE TAKING OUT THEIR FRUSTRATIONS ON HIM AS THE MESSENGER OF BAD NEWS I AM BLUNT AT TIMES BUT I HAVE A JOB TO DO AND I DO IT IN AS PROFESSIONAL A MANNER AS I CAN HE SAYS ADDING IT'S NOT FUN FOR ME I DON'T SLEEP WELL AT NIGHTS SOMETIMES IN CALIFORNIA MR MASA IS EQUALLY UNPOPULAR AMONG BANKERS MR MASA HAS SET THE TONE FOR THE MOST STRINGENT EXAMINATION OF OUR BOOKS POLICIES AND PROCEDURES I'VE SEEN IN 27 YEARS OF BANKING SAYS JAMES STAES PRESIDENT OF THE HOME BANK OF SIGNAL HILL THOUGH CONCEDING MR MASA WAS RIGHT IN FORESEEING THERE WERE DANGERS IN SOME OF OUR INDUSTRY'S LENDING PRACTICES PARTICULARLY IN SOUTHERN CALIFORNIA MR STAES SAYS I FAULT HIM FOR THE MAGNITUDE HE TOOK IT TO HE WAS VERY INFLEXIBLE MR MASA A 45YEAROLD FDIC VETERAN IS FAMILIAR WITH PROBLEM BANKS FROM HAVING WORKED IN TEXAS IN THE EARLY DAYS OF ITS BANKING CRISIS AND THEN SEVERAL YEARS AS ONE OF THE TOP FDIC OFFICIALS IN WASHINGTON HE SAYS THE WEST COAST HAS UNDERGONE THE WORST RECESSION SINCE THE 1930S WHICH IF ANYTHING HAS WORSENED IN THE BRIEF TIME I'VE BEEN OUT HERE AS A RESULT MR MASA ADDS THE NUMBER OF THREE FOUR AND FIVERATED INSTITUTIONS IN CALIFORNIA HAS INCREASED AND YOU WILL GET MORE COMPLAINTS FROM THEM THAN FROM ONE AND TWORATED INSTITUTIONS BANK RATINGS RANGE FROM ONE TO FIVE ONE BEING BEST IN THE OTHER 10 STATES IN HIS DISTRICT WHERE THE ECONOMY IS BETTER MR MASA SAYS THE NUMBER OF ONE AND TWORATED INSTITUTIONS ARE IN THE VAST MAJORITY AND I HEAR FAR FEWER COMPLAINTS BANKINGINDUSTRY OFFICIALS SAY THAT OVERZEALOUS REGULATORS ARE MAKING IT DIFFICULT TO FILL BANK BOARDS WITH TOPNOTCH DIRECTORS WE'RE LOSING GOOD DIRECTORS WHEN YOUNG EXAMINERS TREAT THE BOARDS LIKE KIDS WHO MISBEHAVED SAYS MR DICKEY THE CALIFORNIA BANK CONSULTANT A NEW HAMPSHIRE BANKING OFFICIAL SAYS THAT ONE BANK'S DIRECTORS GOT LETTERS AT HOME ASKING FOR A LIST OF THEIR PERSONAL ASSETS IT ARRIVED A WEEK AFTER THE BANK SUCCESSFULLY APPEALED MR LOYLESS'S CLASSIFICATION OF A LARGE LOAN THE EXAMINER DENIES ANY CONNECTION NEITHER HE NOR THE BANKING OFFICIAL WILL IDENTIFY THE BANK MR LOYLESS HAS ASKED MORE THAN ONE BOARD TO PROVIDE PERSONAL FINANCIAL INFORMATION AS PRESIDENT OF KENNEBUNK SAVINGS BANK IN MAINE WILLIAM GILPATRIC DIFFERED WITH THE FDIC OVER SOME OF ITS LOAN VALUATIONS HE ALSO DIDN'T LIKE IT WHEN THE AGENCY REQUESTED A LIST OF HIS AND EACH BOARD MEMBER'S PERSONAL ASSETS IN CASE IT DECIDED TO SUE MR GILPATRIC REFUSED TO COMPLY AND THE MATTER WAS DROPPED BUT THAT WASN'T THE END OF IT MR LOYLESS MET WITH THE BANK'S DIRECTORS AND SCARED THE HELL OUT OF THEM SAYS MR GILPATRIC WHO SUBSEQUENTLY RETIRED ALTHOUGH HE NEVER MET PERSONALLY WITH MR LOYLESS MR GILPATRIC SAYS THE REGULATOR WAS INSTRUMENTAL IN MY LEAVING MR LOYLESS SAYS AS FAR AS I CAN RECALL THE REMOVAL OF THE PRESIDENT WHICH WE HAVE THE POWER TO DO WAS NOT DISCUSSED WITH THE BOARD OF THE BANK HE ADDS THAT ASKING FOR DATA ON PERSONAL ASSETS IS ROUTINE AND WITHIN THE FDIC'S RIGHT ALTHOUGH EXAMINERS LACK THE POWER TO FORCE DIRECTORS TO TURN OVER PERSONAL FINANCIAL INFORMATION MERELY ASKING FOR IT REMINDS THEM THAT THEY CAN BE HELD RESPONSIBLE FOR A FAILED BANK NOT A BAD WAY TO PROTECT TAXPAYERS IF YOU BELIEVE THAT THAT IS YOUR MISSION SAYS MR LOYLESS WHAT'S BEING ADVOCATED BY MANY IN POLITICS AND BANKING IS TO OPEN THE FAUCET TO THE TYPE OF LENDING THAT TOOK PLACE IN THE 1980S AND WE CAN'T AFFORD TO DO THAT 9304270039 930427 CORPORATE FOCUS NORFOLK SOUTHERN CHARTS NEW COURSE AS COAL PROFITS SLIP RAILROAD JOINS RIVAL CONSOLIDATED RAIL IN INTERMODAL FREIGHT VENTURE BY DANIEL MACHALABA STAFF REPORTER OF THE WALL STREET JOURNAL NORFOLK VA NORFOLK SOUTHERN CORP WHICH PROSPERED IN THE HEARTLAND OF THE CONFEDERACY IS REACHING NORTHWARD CHARTING THE RAILROAD'S ADVANCE ON A ROUTE MAP THOMAS FINKBINER NORFOLK SOUTHERN'S CHIEF CONTAINERSHIPPING OFFICIAL POINTS TO THE LATEST OUTPOST AT HARRISBURG PA BY THIS SUMMER HE SAYS WE'LL BE IN NEW YORK CITY BY NEXT SUMMER WE'D LIKE TO BE IN SYRACUSE AND BOSTON THESE PLACES ARE ALL ON THE TRACKS OF RIVAL CONSOLIDATED RAIL CORP PARTNER WITH NORFOLK SOUTHERN IN A NEW JOINT VENTURE TO LURE FREIGHT BACK TO THE RAILS THE EXPANSION ALSO REPRESENTS NORFOLK SOUTHERN'S EFFORTS TO BECOME MORE THAN THE HIGHLY EFFICIENT BUT CONSERVATIVE RAILROAD THAT SHIPPERS JOKE SEEMS TO RUN BY GRAVITY IT ROLLS LOADED TRAINS DOWNHILL FROM APPALACHIAN COAL FIELDS AND PULLS EMPTY ONES BACK UP ALTHOUGH IT IS AS ONE ANALYST SAYS THE LOWEST COST MAJOR RAILROAD IN THE US NORFOLK SOUTHERN ISN'T SITTING STILL THE COMPANY IS TRYING TO CAPTURE MORE FREIGHT FROM TRUCKERS WHILE COPING WITH A SLOWDOWN IN ITS HIGHPROFIT COAL BUSINESS SAYS DAVID GOODE WHO BECAME CHIEF EXECUTIVE OFFICER LAST SEPTEMBER MY CHALLENGE IN 1993 IS TO GROW A CORPORATION THAT'S BEEN VERY STABLE AND SUCCESSFUL IN THE FACE OF DIFFICULTY IN EXPORT COAL THAT DIFFICULTY IS PART OF THE REASON MR GOODE SAYS THAT NORFOLK SOUTHERN WILL REPORT TOMORROW THAT FIRSTQUARTER OPERATING PROFIT WAS A LITTLE BEHIND NET INCOME OF 139 MILLION OR 97 CENTS A SHARE A YEAR AGO THE QUARTER ALSO WAS MARKED BY SEVERE WEATHER A DERAILMENT AND CONTINUED LOSSES AT THE COMPANY'S TRUCKING UNIT INCLUDING A GAIN FROM CUMULATIVE ACCOUNTING CHANGES HOWEVER NET WILL BE UP SUBSTANTIALLY HE SAYS NORFOLK SOUTHERN'S COAL REVENUES DROPPED 10 IN THE FIRST QUARTER REFLECTING RECESSION IN EUROPE AND FIERCE COMPETITION FROM OTHER COALPRODUCING NATIONS IT HAS BEEN A BIG SETBACK MR GOODE SAYS BUT FORTUNATELY IT HAS COINCIDED WITH SOME REAL STRENGTH IN OTHER AREAS PARTICULARLY CONTAINERIZED FREIGHT AND AUTOMOBILE SHIPMENTS IF THE GROWTH CONTINUES IN INDUSTRIAL FREIGHT MR GOODE SAYS HE EXPECTS 1993 EARNINGS WILL COMPARE FAVORABLY WITH 1992 NET OF 5577 MILLION OR 394 A SHARE HE DECLINED TO COMMENT ON ANALYSTS' PROJECTIONS THAT 1993 NET WILL RISE TO BETWEEN 445 AND 455 A SHARE UNDER THE LEADERSHIP OF MR GOODE WHO IS ALSO NORFOLK SOUTHERN'S CHAIRMAN AND PRESIDENT THE COMPANY SEEMS READY FOR CHANGES THE RISK OF ASSUMING LEADERSHIP OF A SUCCESSFUL CORPORATION IS OF BEING COMPLACENT MR GOODE SAYS BUT WE KNOW WE HAVE TO IMPROVE WHAT IS ALREADY A GOOD OPERATION HIS STRATEGY TO TURN AROUND THE COMPANY'S TRUCKING UNIT NORTH AMERICAN VAN LINES BY EXPLORING OPTIONS THAT RANGE FROM IMPROVING TO SHEDDING OPERATIONS TO STEP UP RAILROAD COSTCUTTING EFFORTS THROUGH BETTER USE OF ASSETS AND TECHNOLOGY AND TO STRIKE ALLIANCES WITH OTHER RAILROADS AND TRUCKERS TO EXTEND ITS CONTAINERFREIGHT SERVICES TO MORE REGIONS THE 52YEAROLD MR GOODE A 27YEAR NORFOLK SOUTHERN VETERAN IS COMMUNICATING A DIFFERENT STYLE THAN HIS PREDECESSORS WHO WERE CONSIDERABLY OLDER WHEN THEY BECAME CEO THE OLD SCHOOL OF THOUGHT WAS PRIDE IN NORFOLK SOUTHERN IT IS VERY PROFITABLE AND VERY SELFSATISFIED SAYS MR FINKBINER WHO HEADS NORFOLK SOUTHERN'S INTERMODAL OPERATIONS FREIGHT THAT TRAVELS BY A COMBINATION OF ROAD AND RAIL BUT DAVE'S RESPONSE IS HOW ARE WE GOING TO MAKE IT BETTER QUICKER EARNINGS GROWTH AN ISSUE SKEPTICS HOWEVER WONDER IF NORFOLK SOUTHERN CAN SUSTAIN PERSHARE EARNINGS GROWTH WHICH AVERAGED 85 A YEAR OVER THE PAST NINE YEARS IF COAL REMAINS WEAK THOSE EARNINGS WERE ENHANCED BY A STOCK BUYBACK PROGRAM THE BUSINESSES THAT WILL SHOW ABOVE AVERAGE GROWTH INTERMODAL FOR ONE GENERATE LOWER PROFIT MARGINS THAN COAL SAYS GRAEME ANNE LIDGERWOOD AN ANALYST AT FIRST BOSTON CORP BY SOME ESTIMATES NORFOLK SOUTHERN MAKES PRETAX PROFIT MARGINS OF 35 OR 40 ON THE COAL IT HAULS ABOUT THREE TIMES HIGHER THAN ON ITS INTERMODAL TRAFFIC NORFOLK SOUTHERN'S STOCK HAS FALLEN FROM FAVOR WITH SOME ANALYSTS WHO PREFER LESSEFFICIENT RAILROADS WITH MORE ROOM TO IMPROVE NORFOLK SOUTHERN HAS LESS FAT TO REMOVE FROM THEIR COST STRUCTURE THAN OTHER RAILROADS SAYS THOMAS GALVIN AN ANALYST AT CJ LAWRENCE INC ADDING THAT RICHMOND VABASED CSX CORP IS A MORE INTERESTING STOCK AT THIS POINT NORFOLK SOUTHERN'S OPERATING RATIO EXPENSES AS A PERCENTAGE OF REVENUE WAS 755 LAST YEAR COMPARED WITH AN AVERAGE AMONG MAJOR RAILROADS OF 852 THE COMPANY ALSO HAS A LOWER EMPLOYEEINJURY RATE BETTER MAINTAINED LOCOMOTIVES AND TRACK AND NEWER FREIGHT YARDS THAN MANY OTHER RAILROADS BY ALMOST ANY MEASURE NORFOLK SOUTHERN IS AT THE TOP OR NEAR THE TOP SAYS JERRY DAVIS CHIEF OPERATING OFFICER OF CSX'S RAIL UNIT BUT WE KEEP MAKING GAINS ON THEM MR GOODE SAYS THERE IS ROOM FOR FURTHER EFFICIENCIES AT NORFOLK SOUTHERN THE COMPANY STILL HASN'T TAKEN FULL ADVANTAGE OF 1991 AGREEMENTS ALLOWING IT TO REDUCE THE SIZE OF FREIGHT TRAIN CREWS TO TWO PERSONS AN ENGINEER AND CONDUCTOR NORFOLK SOUTHERN'S FREIGHT TRAIN CREWS CURRENTLY AVERAGE 26 AND MR GOODE SAYS I HAVE NO DOUBT THAT THE TECHNOLOGY WILL DEVELOP TO PERMIT OPERATION OF TRAINS WITH ONE PERSON WHETHER IT WOULD BE A GOOD IDEA TO DO THAT IS ANOTHER MATTER NORFOLK SOUTHERN OFFICIALS SAY THERE ARE BIG SAVINGS TO BE HAD BY ELIMINATING AS MANY AS A COUPLE OF THOUSAND OF THE COMPANY'S 14700 MILES OF RAIL WITH MINIMAL EFFECT ON TRAFFIC ALTHOUGH MR GOODE DOESN'T EXPECT COAL TO REBOUND THIS YEAR HE SAYS HE REMAINS OPTIMISTIC ABOUT THE LONGTERM FUTURE OF COAL HE SAYS SHIPMENTS OF AUTOMOBILES ANOTHER LUCRATIVE COMMODITY ARE POISED TO RISE FURTHER AS TOYOTA EXPANDS ITS ASSEMBLY PLANT AT GEORGETOWN KY AND BMW BUILDS A NEW ONE IN GREER SC BUT THE GREATEST GROWTH OPPORTUNITY SAY COMPANY OFFICIALS IS FROM WINNING FREIGHT FROM TRUCKS TO RAIL AND A PRINCIPAL MEANS OF CAPTURING THAT GROWTH IS THE JOINT VENTURE WITH CONRAIL THAT MARKETS INTERMODAL SERVICES DIRECTLY TO SHIPPERS THIS MONTH NORFOLK SOUTHERN AND CONRAIL BEGAN TO JOINTLY OPERATE ROADRAILERS A HYBRID TRAILER THAT CONVERTS QUICKLY TO A RAIL CAR ON A TRIANGULAR NETWORK LINKING CHICAGO ATLANTA AND HARRISBURG PA REVENUES OF THE VENTURE CALLED TRIPLE CROWN ARE ABOUT 100 MILLION A YEAR AND ARE PROJECTED TO QUADRUPLE BY 1997 TRIPLE CROWN OFFICIALS PLAN TO OPEN A TERMINAL THIS SUMMER WITHIN SEVEN MILES OF NEW YORK CITY THE NATION'S BIGGEST CONSUMER MARKET THEY ALSO ARE NEGOTIATING WITH OTHER RAILROADS TO EXTEND SERVICES TO MIAMI DALLAS MINNEAPOLIS AND THE WEST COAST MUCH OF THE PROJECTED REVENUE GROWTH IS EXPECTED TO FOLLOW IMPROVEMENTS IN BRIDGE AND TUNNEL CLEARANCES ALONG TRIPLE CROWN ROUTES TO PERMIT USE OF HIGHLYEFFICIENT TRAINS OF DOUBLESTACKED CONTAINERS THAT SAYS TIM DWYER CONRAIL'S PHILADELPHIA DIVISION GENERAL MANAGER WILL OPEN A MUCH BIGGER MARKET FOR RAIL RAILROAD CSX CORP CONSOLIDATED RAIL CORP TRUCKING NUMEROUS OVERTHEROAD MOTOR CARRIERS REDUCTIONS AND ASSET WRITEDOWNS 9304270037 930427 BUSINESS BRIEF CIRRUS LOGIC INC COMPANY REPORTS NET FELL 38 IN FISCAL 4TH QUARTER CIRRUS LOGIC INC CITING REDUCED DEMAND FROM COMPUTER DISKDRIVE MAKERS AND DELAYS IN MEETING SOME OTHER ORDERS REPORTED LOWERTHANEXPECTED NET INCOME OF 25 MILLION OR 10 CENTS A SHARE IN THE FISCAL FOURTH QUARTER A 38 DROP FROM NET OF 4 MILLION OR 16 CENTS A SHARE IN THE SAME YEAREARLIER PERIOD SALES FOR THE FREMONT CALIF COMPUTER CHIP MAKER NEARLY DOUBLED IN THE MOST RECENT QUARTER ENDED MARCH 31 TO 1046 MILLION FROM 576 MILLION A YEAR AGO BUT WERE BELOW THE COMPANY'S PROJECTION ALTHOUGH CIRRUS SUPPLIES CHIPS IN MANY MARKETS IT IS DEPENDENT ON SHIPMENTS TO DISKDRIVE MAKERS FOR AS MUCH AS A THIRD OF ITS REVENUE WITH THAT HIGHLYCOMPETITIVE INDUSTRY NOW OVERSUPPLIED IN DISK DRIVES CIRRUS OFFICIALS SAID THEY RECEIVED FEWER ORDERS FROM DISKDRIVE MAKERS IN THE QUARTER AND HAD TO RESERVE A VERY MATERIAL AMOUNT OF MONEY AGAINST A BACKLOG OF UNUSED INVENTORY ANOTHER CONSTRAINT ON EARNINGS WAS THE INABILITY TO FULLY SUPPLY CHIPS TO COMPUTER GRAPHICS CUSTOMERS BECAUSE OF PARTS SHORTAGES SAID SAM SRINIVASAN CHIEF FINANCIAL OFFICER FOR THE FISCAL YEAR NET INCOME ROSE TO 206 MILLION OR 81 CENTS A SHARE ON SALES OF 3548 MILLION FROM FISCAL 1992 EARNINGS OF 166 MILLION OR 68 CENTS A SHARE ON SALES OF 2176 MILLION 9304270036 930427 BUSINESS BRIEF ASTRONICS CORP FIRM EXPECTS TO POST LOSS IN 2ND PERIOD DUE TO CHARGE ASTRONICS CORP SAID IT EXPECTS TO REPORT A SECONDQUARTER LOSS AS A RESULT OF A CHARGE AGAINST EARNINGS BUT SAID PROFIT IN THE NEXT FEW QUARTERS WILL BE STRONGER THAN YEAREARLIER PERIODS THE COMPANY DECLINED TO SPECIFY THE SIZE OF THE CHARGE ASTRONICS WHICH PREVIOUSLY ANNOUNCED PLANS TO REDEEM OUTSTANDING 1025 SUBORDINATED BONDS DUE SEPT 1 1996 AND REFINANCE THE ISSUE WITH A FIVEYEAR TERM LOAN AT A LOWER INTEREST RATE SAID THE CHARGE WILL STEM FROM THE WRITEOFF OF THE BALANCE OF BOND DEFERRED FINANCING COSTS AND A 510000 REDEMPTION PREMIUM THE ORCHARD PARK NY COMPANY SAID EARNINGS IN LATER QUARTERS WILL BE STRENGTHENED AS WE REALIZE LOWER INTEREST AND FINANCING COSTS THE COMPANY WHICH HAS CUSTOMIZED PRINTING AND PACKAGING AND ELECTRONIC SYSTEMS UNITS POSTED FIRSTQUARTER NET INCOME OF 442000 OR 11 CENTS A SHARE ON SALES OF 66 MILLION A YEAR EARLIER THE COMPANY EARNED 390000 OR 10 CENTS A SHARE ON SALES OF 59 MILLION 9304270035 930427 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY APRIL 14 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9304270034 930416 HOME SHOPPING IS DEALT BLOW FROM FACTORS COMPANIES SUSPEND CREDIT TO SOME APPAREL FIRMS THAT SUPPLY NETWORK BY TERI AGINS AND MARK ROBICHAUX STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK HOME SHOPPING NETWORK INC'S ABILITY TO BUY APPAREL WAS SHARPLY CURTAILED THIS WEEK WHEN MAJOR FACTORING FIRMS SUSPENDED CREDIT TO A NUMBER OF APPAREL MAKERS THAT SHIP MERCHANDISE TO THE CABLE SHOPPING NETWORK MERCHANT FACTORS CORP IN NEW YORK ON WEDNESDAY CUT OFF CREDIT APPROVALS FOR THREE OR FOUR MAJOR APPAREL CLIENTS THAT SELL MERCHANDISE TO THE TV RETAILER PENDING A CLARIFICATION OF WHAT IS GOING ON AT HOME SHOPPING SAID WALTER KAYE PRESIDENT OF MERCHANT FACTORS IT'S UNCLEAR HOW MUCH OF HOME SHOPPING'S 160 MILLION IN ANNUAL APPAREL SALES HAS BEEN AFFECTED OR WHETHER ANY OTHER LINES INCLUDED IN ITS 1 BILLION IN TOTAL ANNUAL SALES HAVE BEEN AFFECTED THE WITHDRAWAL BY FACTORS IS AN EARLY SIGN THAT THE BUSINESS COMMUNITY IS LOSING CONFIDENCE IN HOME SHOPPING'S ABILITY TO PAY ITS BILLS HOME SHOPPING HAS BEEN ROCKED BY WIDENING ALLEGATIONS OF SCANDAL INVOLVING TOP CURRENT OR FORMER EXECUTIVES AT THE COMPANY THE COMPANY IS THE TARGET OF A FEDERAL GRAND JURY INVESTIGATION IN TAMPA FLA AND SEVERAL CIVIL LAWSUITS CHARGING THAT CHAIRMAN ROY HAVE MADE IMPROPER PAYMENTS TO SILENCE ACCUSERS AND HAVE WRONGFULLY FIRED ONE EXECUTIVE WHO HAD THREATENED TO BLOW THE WHISTLE MR KAYE SAID HE BELIEVES MOST OF THE FACTORING COMMUNITY PULLED CREDIT IN SIMILAR FASHION FOR SUPPLIERS TO HOME SHOPPING THIS WEEK THIS SEEMS TO BE A PRELUDE TO CHAPTER 11 THERE SEEMS TO BE A CLOAK OF SECRECY THE SAME PROBLEMS THAT EXIST AT LESLIE FAY MR KAYE SAID HE ADDED IF HOME SHOPPING DOES GO INTO CHAPTER 11 WE FEEL THIS WILL MATERIALLY AFFECT OUR OWN CLIENTS LAST WEEK LESLIE FAY COS FILED FOR CHAPTER 11 BANKRUPTCYLAW PROTECTION ONLY TWO MONTHS AFTER THE COMPANY DISCOVERED AN INTERNAL ACCOUNTING SCANDAL THAT HAD CAUSED IT TO IMPROPERLY REPORT INFLATED EARNINGS IN 1991 AND 1992 AT HOME SHOPPING NETWORK WHICH IS BASED IN CLEARWATER FLA EXECUTIVES DIDN'T RETURN CALLS SEEKING COMMENT ON THE LATEST DEVELOPMENT BUT TALK OF A BANKRUPTCYLAW FILING BROUGHT A STRONG REBUKE FROM LIBERTY MEDIA CORP WHICH OWNS 65 VOTING CONTROL OF HOME SHOPPING TO MY KNOWLEDGE THE MAJOR BANKS THAT FUND HOME SHOPPING AREN'T CONCERNED SAID PETER BARTON PRESIDENT OF LIBERTY THESE INTIMATIONS THAT THE BUSINESS IS FINANCIALLY UNSOUND ARE UNFOUNDED BANKRUPTCY IS NOT A PROSPECT IT'S NONSENSE A LIBERTY SPOKESMAN SAID SEVERAL BANKS YESTERDAY FUNDED A PRESCHEDULED 40 MILLION LOAN TO PERMIT THE COMPANY TO CALL OUTSTANDING BONDS THE SPOKESMAN SAID THE COMPANY HAS MORE THAN ADEQUATE CASH ON HAND AND CASH FLOW TO MEET ITS OPERATING REQUIREMENTS MANY APPAREL MAKERS RELY ON FACTORING FIRMS WHICH EFFECTIVELY GUARANTEE THEM FULL CREDIT FOR THE GOODS THEY SHIP BY BUYING THEIR ACCOUNTS RECEIVABLE AT A DISCOUNT AND COLLECTING LATER FROM THE RETAILER FACTORS WIELD CONSIDERABLE POWER IN THE APPAREL WORLD BECAUSE FEW MANUFACTURERS WANT TO BEAR THE ENTIRE RISK OF SHIPPING NEW GOODS TO RETAIL CLIENTS ESPECIALLY IN TIMES WHEN THE RETAILERS ARE BELIEVED TO BE IN FINANCIAL DISTRESS THEIR PULLOUT IN THE HOME SHOPPING CASE IS THE LATEST IN A SERIES OF SETBACKS FOR THE COMPANY MONDAY THE COMPANY POSTED A WIDERTHANEXPECTED LOSS OF 269 MILLION ON AN 11 DECLINE IN SALES FOR THE FISCAL SECOND QUARTER ENDED FEB 28 LIBERTY MEDIA ACQUIRED MAJORITY CONTROL OF HOME SHOPPING IN DECEMBER BUT LAST WEEKEND IT WITHDREW A SECOND OFFER TO ACQUIRE THE OUSTANDING STAKE IT DOESN'T OWN FOR MORE THAN 640 MILLION IN CASH AND STOCK BECAUSE OF THE ALLEGATIONS OF FINANCIAL MISDEEDS AND THE GRAND JURY INVESTIGATION INTO HOME SHOPPING SOME OF THE CHARGES SURFACED IN A BITTER DIVORCE CASE INVOLVING A FORMER HOME SHOPPING GENERAL COUNSEL FERNANDO DIFILIPPO HIS EXWIFE ALLEGED THAT THE CHAIRMAN MR SPEER AND FORMER PRESIDENT LOWELL PAXSON PAID HER EXHUSBAND 12 MILLION IN HOME SHOPPING SHARES AFTER HE THREATENED TO EXPOSE THEIR ALLEGED SECRET INTERESTS IN SOME SUPPLIERS THE THREE PRINCIPALS HAVE DENIED ALL ACCUSATIONS AGAINST THEM CRAIG BIBB AN ANALYST WITH PAINEWEBBER SAID THE FACTORING FIRMS THAT GUARANTEE APPAREL SHIPMENTS ARE REACTING TO THE BAD EARNINGS AS MUCH AS ANY OTHER NEWS OUT THERE AND THOSE PEOPLE ARE LIKELY TO SEE A LOSS DURING A HOLIDAY QUARTER AS A MAJOR RED FLAG JUST AFTER THE POOR EARNINGS RESULTS WERE ANNOUNCED AT LEAST SIX SHAREHOLDERS FILED LAWSUITS SEEKING CLASSACTION STATUS THE SUITS SEEK DAMAGES AND CHARGE THE COMPANY WITH KNOWINGLY CONCEALING THE ALLEGED IMPROPRIETIES HOME SHOPPING NETWORK INC SAID IT AND TOP COMPANY EXECUTIVES HAVEN'T BEEN NAMED AS A SUBJECT OR TARGET OF A CURRENT FEDERAL GRAND JURY INVESTIGATION AND HAVEN'T BEEN SUBPOENAED IN THE PROBE AN APRIL 16 ARTICLE INCORRECTLY STATED THAT THE COMPANY IS A TARGET OF THE GRAND JURY PROCEEDINGS THE INVESTIGATION IS BELIEVED TO BE FOCUSING ON VARIOUS ALLEGATIONS REVOLVING AROUND SEVERAL FORMER AND CURRENT HOME SHOPPING EXECUTIVES 9304270033 930427 CORRECTIONS & AMPLIFICATIONS HJ HEINZ CO SAYS ITS RECENT MARKET SHARES ARE THE HIGHEST IN ITS HISTORY AND SALES ARE EXPECTED TO SHOW AN INCREASE OF MORE THAN 6 IN THE FISCAL YEAR ENDING TOMORROW THE LARGEST INCREASE IN 15 YEARS HEINZ SALES WERE INAPPROPRIATELY DESCRIBED AS SLUGGISH IN YESTERDAY'S EDITION HOME SHOPPING NETWORK INC SAID IT AND TOP COMPANY EXECUTIVES HAVEN'T BEEN NAMED AS A SUBJECT OR TARGET OF A CURRENT FEDERAL GRAND JURY INVESTIGATION AND HAVEN'T BEEN SUBPOENAED IN THE PROBE AN APRIL 16 ARTICLE INCORRECTLY STATED THAT THE COMPANY IS A TARGET OF THE GRAND JURY PROCEEDINGS THE INVESTIGATION IS BELIEVED TO BE FOCUSING ON VARIOUS ALLEGATIONS REVOLVING AROUND SEVERAL FORMER AND CURRENT HOME SHOPPING EXECUTIVES 9304270032 930427 BOSSES WILL DO ALMOST ANYTHING TO LIGHT FIRES UNDER SALESPEOPLE BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL IS YOUR SALES STAFF SUFFERING FROM BURNOUT OR LACKING SIZZLE DON'T RAKE THEM OVER THE COALS TAKE THEM TO THE COALS FIRE WALKING THE ANCIENT RITUAL OF TREADING BAREFOOT OVER A BED OF REDHOT EMBERS IS CATCHING ON IN SALESTRAINING PROGRAMS A NUMBER OF COMPANIES INCLUDING DIGITAL EQUIPMENT CORP AND METROPOLITAN LIFE INSURANCE CO ARE TRYING THE MINDOVERMATTER EXERCISE HOPING TO FIRE UP THEIR STAFFS SALESPEOPLE AT THE COLOMBO FROZEN YOGURT DIVISION OF BONGRAIN NORTH AMERICA RECENTLY WALKED ON FIRE DURING A SEMINAR IN DANVERS MASS THE COMPANY CALLED THE SESSION A FABULOUS CRESCENDO POINT FOR OUR NATIONAL SALES MEETING SCOTT MAGNACCA A BOSTON INVESTMENT CONSULTANT AND SELFIMPROVEMENT GURU WHO CONDUCTED THE FIRE WALK FOR THE ANDOVER MASS CONCERN SAYS A FEW QUICK STEPS OVER 1200DEGREE COALS WILL RESULT IN QUANTUM LEAPS IN SALES PERFORMANCE THOUGH THE TREK OVER 14 FEET OF GLOWING COALS WAS OPTIONAL ABOUT 100 OF 120 COLOMBO EMPLOYEES ATTEMPTED IT TUNES LIKE HOT HOT HOT AND THE HEAT IS ON BLARED IN THE BACKGROUND MR MAGNACCA IN A RASPY JOE PESCI VOICE BARKED SUCH ENCOURAGEMENTS AS COLD CALLING IS GOING TO BE A PIECE OF CAKE AFTER YOU DO THIS SOME PARTICIPANTS PREFER TO TIPTOE ACROSS ZONE MANAGER RICHARD MONSEES SAYS HE HIGH STEPPED IT AS IF CHARGING INTO THE END ZONE ONE SALESWOMAN GOT A HOTFOOT WHEN THE POLISH ON HER TOENAILS CAUGHT FIRE BUT WATER QUICKLY EXTINGUISHED THE FLAMES FIRE WALKING DOESN'T WORK ONLY FOR SALESPEOPLE IN A LETTER TO MR MAGNACCA DINA PANDYA ASSISTANT DIRECTOR OF ALUMNI RELATIONS FOR BABSON COLLEGE SAYS FIRE WALKING HELPED ME ACCOMPLISH MY GOAL OF RECONNECTING ALUMNI WITH BABSON AND MAKING ALUMNI FEEL GOOD ABOUT BABSON MR MAGNACCA SAYS THERE IS NO REAL SECRET TO FIRE WALKING FAKIRS HAVE OCCASIONALLY CONFIDED THAT WET GRASS ON BOTH ENDS OF THE COAL PIT ARE A BIG HELP MY ONLY ADVICE OFFERS MR MAGNACCA IS THAT AFTER YOU TAKE THE FIRST STEP KEEP WALKING FIRSTAID KITS AND FIREMEN ARE ON HAND AT MOST OF HIS FIRE WALKS MR MAGNACCA WHO IS WRITING A BOOK TITLED RELATIONSHIP BASED SELLING DEVOTES MOST OF ONE CHAPTER TO FIRE WALKING IT WILL HELP YOU OVERCOME FEAR AND PROCRASTINATION HE SAYS IN FACT IT WILL HELP YOU DO ANYTHING SHORT OF WALKING ON WATER 9304270031 930427 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED APRIL 23 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER BEAVER COUNTY OHIO INDUSTRIAL DEVELOPMENT AUTHORITY WILL REDEEM ON JUNE 1 1993 100000 PRINCIPAL AMOUNT OF ITS 57 POLLUTION CONTROL REVENUE BONDS 1973 SERIES A SOCIETY NATIONAL BANK CLEVELAND IS TRUSTEE LINDEN LEASED HOUSING CORP WILL REDEEM ON JUNE 1 1993 305000 PRINCIPAL AMOUNT OF ITS FIRST MORTGAGE LEASE RENTAL BONDS SERIES A DUE JUNE 1 2000 UNITED COUNTIES TRUST CO IS TRUSTEE LOUISIANA WILL REDEEM ON JUNE 1 1993 62320000 PRINCIPAL AMOUNT OF THE FOLLOWING GENERAL OBLIGATION BONDS SERIES 1980C 64 DUE JUNE 1 1996 AND 65 DUE JUNE 1 19972005 SUNBURST BANK BATON ROUGE LA IS PAYING AGENT METROPOLITAN TRANSPORTATION AUTHORITY WILL REDEEM ON JUNE 1 1993 ITS 7 COMMUTER FACILITIES SERVICE CONTRACT BONDS AND ITS 7 TRANSIT FACILITIES SERVICE CONTRACT BONDS BOTH SERIES A DUE JULY 1 2013 CHEMICAL BANK NEW YORK IS TRUSTEE OBERLIN OHIO WILL REDEEM ON JUNE 1 1993 ITS 6 5/8 HOSPITAL IMPROVEMENT REVENUE BONDS SERIES 1973 DUE DEC 1 1994 SOCIETY NATIONAL BANK CLEVELAND IS TRUSTEE WADSWORTH HOUSING DEVELOPMENT CORP WILL REDEEM ON JUNE 1 1993 THE FOLLOWING FIRST LIEN REVENUE BONDS DUE DEC 1 OF THE INDICATED YEARS 68 DUE 1993 69 DUE 1994 7 DUE 1995 71 DUE 1996 72 DUE 1997 725 DUE 1998 75 DUE 2008 AND 7 3/4 DUE 2019 SOCIETY NATIONAL BANK CLEVELAND IS TRUSTEE BANC ONE CORP WILL REDEEM ON JUNE 4 1993 ITS CLASS B PREFERRED STOCK BANK ONE INDIANAPOLIS IS REDEMPTION AGENT 9304270030 930427 WHO'S NEWS UNOCAL CORP UNOCAL CORP LOS ANGELES MARINA VN WHITMAN WAS ELECTED A DIRECTOR OF THIS DIVERSIFIED OIL CONCERN SUCCEEDING ANN D MCLAUGHLIN 51 YEARS OLD WHO RESIGNED MS WHITMAN 58 CURRENTLY IS A DISTINGUISHED VISITING PROFESSOR OF BUSINESS ADMINISTRATION AND PUBLIC POLICY AT THE UNIVERSITY OF MICHIGAN 9304270029 930427 LEISURE & ARTS TIME OFF DIVERSIONS AND EXCURSIONS APRIL 27MAY 10 FOR THE FIRST TIME WORKS FROM THE WORLDRENOWNED COLLECTION OF ALBERT C BARNES 18721951 HAVE LEFT THE FOUNDATION'S SUBURBAN PHILADELPHIA HOME AND ARE ON TOUR THE 80 FRENCH IMPRESSIONIST POSTIMPRESSIONIST AND EARLY MODERN PAINTINGS ARE DRAWN FROM THE 2500PIECE BARNES COLLECTION AND INCLUDE WORKS BY CEZANNE MATISSE RENOIR VAN GOGH ROGER DE LA FRESNAYE AND PICASSO NATIONAL GALLERY OF ART FOURTH STREET AT CONSTITUTION AVENUE NW MAY 2AUG 15 202 8426713 THE SHOW THEN TRAVELS TO THE MUSEE D'ORSAY IN PARIS SEPT 6 1993JAN 2 1994 THE NATIONAL MUSEUM OF WESTERN ART IN TOKYO JAN 21APRIL 3 1994 AND THE PHILADELPHIA MUSEUM OF ART DATES TO BE DETERMINED FROM THE BRAZILIANBORN PHOTOJOURNALIST SEBASTIAO SALGADO A MAN WHO HAS MADE A CAREER PORTRAYING THE HUMAN CONDITION SOME 250 IMAGES OF LABORERS IN THE GOLD MINES OF BRAZIL THE SHIPYARDS OF POLAND THE FACTORIES OF CHINA AND 50 OTHER LOCATIONS AROUND THE WORLD PHILADELPHIA MUSEUM OF ART BENJAMIN FRANKLIN PARKWAY THROUGH JULY 11 215 7875431 ORGANIZED BY THE PHILLIPS COLLECTION WASHINGTON DC THIS SHOW SUBTITLED A CONVERSATION IN PAINTING AND PHOTOGRAPHS IS DESIGNED TO SHOW HOW THESE PIONEER MODERNISTS INFLUENCED EACH OTHER'S WORK ON VIEW ARE 57 PHOTOGRAPHS BY STIEGLITZ AND 33 PAINTINGS BY O'KEEFFE DATING FROM 1916 THE YEAR IN WHICH THEY MET TO THE MID'30S IBM GALLERY OF SCIENCE AND ART 590 MADISON AVE AT 56TH STREET THROUGH JUNE 26 212 7456100 THE SHOW THEN TRAVELS TO THE MINNEAPOLIS INSTITUTE OF ARTS JULY 18SEPT 12 AND THE MUSEUM OF FINE ARTS HOUSTON OCT 3DEC 5 MORE THAN 100 EUROPEAN DRAWINGS OF THE 16TH TO 18TH CENTURIES FROM 10 POLISH MUSEUMS ARE BEING SHOWN IN THE US FOR THE FIRST TIME AMONG THE ARTISTS REPRESENTED ARE DURER HOLBEIN THE ELDER FRAGONARD BOUCHER CANALETTO GUERCINO REMBRANDT AND RUBENS NELSONATKINS MUSEUM OF ART 4525 OAK ST THROUGH JUNE 6 816 7511ART THE EXHIBIT MOVES ON TO THE MILWAUKEE ART MUSEUM JULY 9AUG 29 THE MUSEUM OF FINE ARTS MONTREAL OCT 10DEC 5 AND THE WADSWORTH ATHENEUM HARTFORD CONN JAN 9MARCH 6 1994 THE COMPANY PREMIERE OF KENNETH MACMILLAN'S FULLLENGTH MANON AND A REVIVAL OF DAVID BLAIR'S 1967 STAGING OF SWAN LAKE HIGHLIGHT THE COMPANY'S SPRING SEASON AT THE MET METROPOLITAN OPERA HOUSE LINCOLN CENTER BROADWAY BETWEEN 62ND AND 65TH STREETS MAY 3JUNE 12 212 3626000 A NEW PRODUCTION OF MOZART'S COSI FAN TUTTE DIRECTED BY RON PELUSO AND CONDUCTED BY BARBARA SILVERSTEIN THE COMPANY'S ARTISTIC DIRECTOR JUNE ANDERSON MAKES HER FIRST APPEARANCE IN A RUSSIANLANGUAGE OPERA AS MARIA IN TCHAIKOVSKY'S TRAGIC OPERA MAZEPPA WHICH IS RARELY PERFORMED IN THIS COUNTRY EVE QUELER CONDUCTS A CAST THAT INCLUDES SERGEI LEIFERKUS AS THE COSSACK LEADER MAZEPPA PAUL PLISHKA AS MARIA'S FATHER A WEALTHY LANDOWNER AND GEGAM GRIGORIAN AS ANDREI WHO IS IN LOVE WITH MARIA CARNEGIE HALL 181 SEVENTH AVE AT 57TH STREET MAY 2 212 7991982 OR 212 2477800 9304270028 930427 TO CHANGE THE COMPANY CHANGE THE BOARD BY ROBERT AG MONKS AT WESTINGHOUSE'S ANNUAL MEETING TOMORROW I WILL REFUSE TO VOTE MY 132200 SHARES FOR THE FOUR DIRECTORS RUNNING FOR REELECTION AS A PERCENT OF TOTAL SHARES OUTSTANDING THAT 132200 FIGURE ISN'T MUCH BUT IT IS MORE THAN ALL THE SHARES OWNED OUTRIGHT BY ALL THE COMPANY'S INDEPENDENT OUTSIDE DIRECTORS PUT TOGETHER WESTINGHOUSE HAS LOST MORE THAN 60 OF SHAREHOLDER VALUE OVER THE PAST FIVE YEARS IT IS A COMPANY ALL BUT RUINED BY MISMANAGEMENT AND NEGLECT THE MISMANAGEMENT WAS THE FAULT OF THE CHIEF EXECUTIVE OFFICERS THE NEGLECT WAS THE FAULT OF THE BOARD THE CEO RESIGNED FOUR MONTHS AGO THE DIRECTORS ARE STILL THERE THAT IS THE PROBLEM WESTINGHOUSE'S TROUBLES REFLECT THOSE AT MANY COMPANIES MANY OF THE CURRENT BOARD MEMBERS WERE THERE AS THE COMPANY PERFORMANCE DROPPED THIS BOARD DIRECTED ITS ATTENTION FROM THE CORE BUSINESS TO BUILDING A VAST PORTFOLIO OF FINANCIAL ASSETS AND ACQUIRING BUSINESSES UNRELATED TO ITS TRADITION OF ELECTRICAL MANUFACTURING IT ALLOWED MANAGEMENT TO FINANCE THESE EXPANSIONS WITH MASSIVE BORROWING THE BOARD WAS THERE AS THE COMPANY'S CONFUSING ESTIMATES OF REALESTATE LOSSES AND ANNUAL SPECIAL CHARGES DISINTEGRATED ITS CREDIBILITY THIS IS THE BOARD THAT APPOINTED THE NOWDEPARTED CEO PAUL LEGO AS WELL AS HIS PREDECESSOR IN AN EFFORT AT REFORM THE BOARD VERY PUBLICLY REVERSED MR LEGO'S COMPENSATION THEN GRANTED HIM NEW OPTIONS TO GIVE HIM MORE THAN HE LOST THAT DECISION LED AT LAST YEAR'S ANNUAL MEETING TO A THENRECORD 3 WITHHOLD VOTE WHEN SHAREHOLDERS VOTE THEIR SHARES BUT REFUSE TO BACK ANY OF MANAGEMENT'S CANDIDATES FROM THE UNHAPPY SHAREHOLDERS AFTER PUSHING HIM OUT THE BOARD SOFTENED MR LEGO'S DEPARTURE WITH A GENEROUS PACKAGE MR LEGO WAS REMOVED IN A SERIES OF CEO DEPARTURES THAT SHATTERED THE CORPORATE EQUIVALENT OF MOUNT RUSHMORE THE BOARDS OF GENERAL MOTORS IBM AMERICAN EXPRESS AND DIGITAL SHOWED A RARE LEVEL OF INDEPENDENCE AND WILLINGNESS TO ACT SOMETIMES BOARDS CAN ACT IN TIME TO SAVE THEIR COMPANIES FIVE YEARS AGO WESTINGHOUSE'S PITTSBURGH NEIGHBOR MELLON BANK ALSO FACED SERIOUS PROBLEMS THE BOARD ADDRESSED THEM PROMPTLY AND FORCEFULLY THEY BROUGHT IN A STRONG CEO AND WITH HIM PUT THROUGH CHANGES THAT HAVE MADE MELLON A STRONG FINANCIAL SUCCESS BUT THERE ARE MORE BAD EXAMPLES THAN GOOD ONES ARMAND HAMMER'S CAPTIVE BOARD AT OCCIDENTAL PETROLEUM AGREED TO EVERYTHING HE ASKED INCLUDING A 120 MILLION MUSEUM FOR HIS ART COLLECTION AMERICAN EXPRESS WAFFLED OVER ITS ATTEMPT TO REPLACE JAMES ROBINSON UNTIL SHAREHOLDERS STEPPED IN IBM'S BOARD REFUSED TO BELIEVE THAT THEIR COMPANY WOULD CRUMBLE SAVINGSANDLOANS BOARDS NEGLECTED THEIR RESPONSIBILITIES DURING THE 1980S THE LESSON IS THAT A BOARD HAS TO CHANGE BEFORE IT CAN CHANGE A COMPANY SHAREHOLDERS HAVE TO INSIST ON DIRECTORS WHO CAN FIND THE BEST POSSIBLE CEO AND REDESIGN THE FIRM SO GOALS ARE ACHIEVABLE DIRECTORS MUST REPLACE THEMSELVES WITH PEOPLE WHO HAVE THE FINANCIAL AND STRATEGIC EXPERTISE AND TIME TO DO THE JOB TO PREPARE FOR THIS THEY SHOULD MEET WITH SHAREHOLDERS TO ESTABLISH CRITERIA FOR DIRECTORS SHAREHOLDERS FOR THEIR PART SHOULD INSIST ON DIRECTORS WHO HAVE EXPERIENCE AND EXPERTISE TO ESTABLISH THE COMPANY'S DIRECTION THE OUTSIDE DIRECTOR CANDIDATES AT WESTINGHOUSE DO NOT HAVE STRONG BACKGROUNDS IN FINANCE OR BUSINESS FRANK CARLUCCI THE FORMER SECRETARY OF DEFENSE WILLIAM H GRAY III A FORMER CONGRESSMAN AND PRESIDENT OF THE UNITED NEGRO COLLEGE FUND PAULA STERN A CONSULTANT WITH INTERNATIONAL TRADE EXPERIENCE IN GOVERNMENT BUT NOT IN BIG BUSINESS SHAREHOLDERS SHOULD ALSO LIMIT THE NUMBER OF OTHER BOARDS A DIRECTOR CAN SERVE ON WESTINGHOUSE'S CANDIDATES FOR REELECTION THIS YEAR INCLUDE ONE PERSON WHO SERVES ON SIX OTHER BOARDS AND ANOTHER WHO SERVES ON MORE THAN 20 ACTING CEO GARY CLARK SERVES ON FOUR OTHER BOARDS SHAREHOLDERS SHOULD URGE DIRECTORS TO LIMIT THEMSELVES TO NO MORE THAN THREE BOARDS UNFORTUNATELY SHAREHOLDERS CAN'T FIRE THE BOARD THE LAW PERMITS ONLY A SYMBOLIC WITHHOLDING OF APPROVAL IN WITHHOLDING MY APPROVAL I AM CASTING A VOTE OF NO CONFIDENCE SHAREHOLDERS IN WESTINGHOUSE AND OTHER COMPANIES SHOULD REMEMBER THE BOARDMEMBERS ARE THERE TO REPRESENT YOU IF THEY DON'T DO THE JOB DON'T GIVE THEM YOUR VOTE MR MONKS IS PRESIDENT OF THE LENS FUND A LIMITED PARTNERSHIP ACTIVE IN SHAREHOLDER RIGHTS NELL MINOW A PARTNER IN LENS CONTRIBUTED TO THIS ARTICLE 9304270027 930427 POLITICS & POLICY IT'S THE ARGUMENT NEITHER PARTY WANTS TO HEAR INCREASING TAX RATES ON THE RICH WON'T WORK BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN THE HEATED DEBATE OVER PRESIDENT CLINTON'S TAX PROPOSALS MARTIN FELDSTEIN IS MAKING THE ARGUMENT NOBODY WANTS TO HEAR THE DEMOCRATS SAY THE PROPOSED TAX INCREASES ON THE AFFLUENT WILL REDRESS THE INEQUITIES OF THE 1980S AND RAISE SOME 30 BILLION IN FISCAL 1994 THE REPUBLICANS THINK THERE ARE POLITICAL POINTS TO BE SCORED BY ATTACKING MR CLINTON FOR TAKING SO MUCH MONEY OUT OF AMERICANS' POCKETS BUT MR FELDSTEIN WHO CHAIRED RONALD REAGAN'S COUNCIL OF ECONOMIC ADVISERS IS ARGUING THAT FOR ALL THE SOUND AND FURY RAISING TAX RATES ON THE RICH WON'T COLLECT ANYWHERE NEAR THE AMOUNT OF MONEY THAT THE PRESIDENT WANTS AND THAT THE REPUBLICANS ARE ASSAILING HIM ABOUT MR FELDSTEIN'S ARGUMENT IS THAT THE RICH WILL AVOID THE TAXES BY WORKING LESS AND TURNING TAXABLE INCOME INTO TAXFREE OR TAXDEFERRED INCOME THE END RESULT HE PREDICTS IS THAT THE PRESIDENT'S TAX INCREASES WOULD PRODUCE LITTLE OR NO ADDITIONAL REVENUE BUT WOULD WEAKEN THE ECONOMY THE FELDSTEIN ASSAULT HAS UNSETTLED SOME ADMINISTRATION OFFICIALS REKINDLED ANIMOSITY BETWEEN SUPPLYSIDE ECONOMISTS AND ADVOCATES OF A MORE PROGRESSIVE TAX CODE AND PUT SOMETIMESSECRETIVE TREASURY AND CONGRESSIONAL TAX EXPERTS ON THE DEFENSIVE JOSEPH MINARIK CHIEF ECONOMIST FOR THE WHITE HOUSE BUDGET OFFICE SAYS MR FELDSTEIN IS VASTLY EXAGGERATING THE EXTENT TO WHICH THE RICH CAN AND WILL AVOID THE TAX INCREASES THAT MR CLINTON PROPOSES HE SAYS MR FELDSTEIN NOW A HARVARD PROFESSOR IS USING THE SAME FLAWED LOGIC THAT LED MR REAGAN TO CUT TAXES AND CREATE HUGE DEFICITS WHATEVER THE MERITS OF THE FELDSTEIN CRITIQUE IT'S PROVING TO BE AN ARGUMENT THAT EVEN HIS NATURAL ALLIES CONSERVATIVE REPUBLICANS IN CONGRESS DON'T WANT TO SOUND TOO LOUDLY HAVING MADE SO MUCH NOISE ABOUT ALL THE TAXES IN THE CLINTON PLAN REPUBLICANS ARE RELUCTANT TO ARGUE THAT THERE ARE ACTUALLY FEWER TAXES IN THE PLAN THAN MEET THE EYE WHAT'S MORE FEW POLITICIANS ARE EAGER TO ATTACK TAX INCREASES AIMED EXCLUSIVELY AT THE WELLOFF UNQUESTIONABLY THE MOST POPULAR ELEMENT OF THE CLINTON DEFICITREDUCTION INITIATIVE AND THE ONLY ALTERNATIVE TO RAISING TAXES ON THE RICH IS RAISING TAXES ON THE GULP MIDDLE CLASS OVER THE NEXT FOUR YEARS TAX INCREASES ON THE WELLOFF ACCOUNT FOR 45 OF MR CLINTON'S TAX INCREASES REPUBLICAN REP DICK ARMEY OF TEXAS ONE OF MR FELDSTEIN'S FEW SYMPATHIZERS IN THE TAX DEBATE SAYS HIS CRITIQUE WILL GET MORE ATTENTION NOW THAT CONGRESS HAS DISPOSED OF MR CLINTON'S STIMULUS PACKAGE AND IS MOVING ON TO TAXES THE URGENT DRIVES OUT OF CONSIDERATION THE IMPORTANT HE SAYS BUT AS VOTES ON TAX INCREASES NEAR THE DOUBTS ABOUT THE WISDOM OF RAISING TAX RATES WILL GROW THE DEBATE OVER THE FELDSTEIN THESIS FOCUSES NOT ON SOME COMPLEX QUESTION OF CORPORATE CASH FLOW THAT ONLY AN ECONOMIST CAN COMPREHEND BUT ON A SIMPLE QUESTION THAT TAXPAYERS INVOLVED CAN ANSWER AS AUTHORITATIVELY AS THE EXPERTS WHAT WILL RICH PEOPLE DO IF TAX RATES GO UP CONSIDER A COUPLE CALL THEM SAM AND MABEL WITH 180000 IN TAXABLE INCOME WHO FACE A TAX INCREASE OF 3305 UNDER THE CLINTON PLAN SAM AND MABEL ARE UNHAPPY SO UNHAPPY MR FELDSTEIN SAYS THAT THEY ARE LIKELY TO RID THEMSELVES OF OR HIDE 18000 IN TAXABLE INCOME EVEN THOUGH MR CLINTON WOULD STILL LET THEM KEEP 11000 OF THAT GETTING RID OF INCOME IS A CINCH FOR PEOPLE AT THE TOP MR FELDSTEIN SAYS MABEL MIGHT GIVE UP HER PARTTIME JOB OR DECIDE AGAINST DOING ANY MORE FREELANCE WRITING OR THEY MIGHT GET A BIGGER MORTGAGE TO GET BIGGER DEDUCTIONS OR THEY MIGHT SHIFT THEIR INVESTMENTS INTO TAXEXEMPT BONDS THE RESULT THE GOVERNMENT WOULD COLLECT 3700 LESS TAXES FROM SAM AND MABEL THAN UNDER EXISTING TAX RATES MR FELDSTEIN SAYS TWOTHIRDS OF THE TAX REVENUE MR CLINTON EXPECTS TO COLLECT FROM THE RICH IS LIKELY TO EVAPORATE IF HE'S RIGHT THAT LEAVES A BIG HOLE IN THE CLINTON DEFICITREDUCTION PLAN THE PRESIDENT EXPECTS TO COLLECT 118 BILLION OVER THE NEXT FOUR YEARS BY INCREASING MARGINAL TAX RATES TO 36 FROM 31 FOR COUPLES WITH TAXABLE INCOMES ABOVE 140000 AND TO 396 FOR THOSE WITH INCOMES ABOVE 250000 AND MAKING THEM PAY MORE IN MEDICARE PAYROLL TAXES ECONOMIC RESEARCH ON THE ISSUE IS SKIMPY BUT MR FELDSTEIN'S CRITICS SAY THE TYPICAL 180000AYEAR COUPLE ISN'T GOING TO GIVE UP 11000 AND WILL FIND IT TOUGH TO SHELTER THAT MUCH THEY SAY PEOPLE AT THOSE KIND OF INCOME LEVELS REALLY CUT THINGS CLOSER TO THE BONE THAN YOU IMAGINE MORTGAGED TO THE HILT KIDS IN PRIVATE SCHOOLS DRIVING BMWS SAYS THOMAS OCHSENSCHLAGER OF GRANT THORNTON AN ACCOUNTING FIRM THEY ARE IRKED THAT TAXES HAVE GONE UP BUT THEY'RE NOT LIKELY TO GIVE UP THEIR STANDARD OF LIVING THERE'S NO DOUBT THAT THE RICH WILL SHELTER INCOME FROM THE TAX MAN IF THE CLINTON TAX INCREASES ARE ENACTED THE ISSUE IS HOW MUCH MORE OF THIS WILL OCCUR THAN DOES ALREADY IF THEY RICH PEOPLE COULD DO IT COSTLESSLY THEY'D DO IT NOW SAYS MR MINARIK THE BUDGET OFFICE ECONOMIST TAX SHELTERS ARE HARD TO COME BY THESE DAYS THOUGH SOME TAX LAWYERS SAY MR CLINTON'S PLAN TO SLASH CAPITALGAINS TAX RATES FOR INVESTMENTS IN CERTAIN SMALL COMPANIES COULD CREATE SOME NEW ONES AND THE NEW TAX RATES REMAIN BELOW THOSE OF THE 1960S AND 1970S BUT TAXPAYERS WHO FACE THE BIGGEST TAX INCREASES ARE THE ONES MOST LIKELY TO SHIFT INVESTMENTS AROUND OR TAKE MORE COMPENSATION IN STOCK AND FRINGE BENEFITS AND LESS IN CASH OR STRUCTURE THEIR BUSINESSES TO DUCK OR DELAY TAXES THE TAX INCREASES COULD SEND WELLOFF BABY BOOMERS IN PARTICULAR SCURRYING TO THEIR ACCOUNTANTS FOR RELIEF SUGGESTS JAMES POTERBA A MASSACHUSETTS INSTITUTE OF TECHNOLOGY ECONOMIST BABY BOOMERS HAVEN'T FACED MARGINAL TAX RATES THAT WERE VERY HIGH IT DIDN'T PAY TO TRY TO AVOID THEM THAT'S GOING TO CHANGE WHEN MARGINAL TAX RATES GO ABOVE 40 AND APPROACH 50 WITH STATE AND LOCAL TAXES FIGURED IN WHEN TREASURY TAX TECHNICIANS AND THEIR COUNTERPARTS IN CONGRESS PROJECT THE REVENUES FROM HIGHER TAX RATES THEY FACTOR ALL THIS IN MR FELDSTEIN SAYS THE GOVERNMENT UNDERESTIMATES JUST HOW MUCH FINANCIAL MANEUVERING WILL OCCUR BUT NEITHER THE TREASURY NOR THE JOINT COMMITTEE ON TAXATION WILL REVEAL HOW MUCH TAX AVOIDANCE THEY ANTICIPATE IT'S POSSIBLE AS ECONOMISTS OF THE SUPPLYSIDE SCHOOL ARGUE THAT HIGHER TAX RATES WILL ENCOURAGE THE RICH TO WORK LESS FOR CELEBRITIES TO MAKE FEWER PAID APPEARANCES FOR MOTHERS TO SWITCH FROM FULLTIME TO PARTTIME FOR SURGEONS TO DO FEWER OPERATIONS NEITHER TREASURY NOR THE JOINT COMMITTEE TAKE THIS POSSIBILITY INTO ACCOUNT IN PROJECTING REVENUES AND ECONOMISTS DIFFER ON HOW MUCH IF ANY OF THIS WILL OCCUR JANE GRAVELLE AN ECONOMIST WITH THE CONGRESSIONAL RESEARCH SERVICE SAYS IT'S EVEN POSSIBLE THAT SOME PEOPLE WILL WORK MORE SO THAT THEY CAN MAINTAIN THEIR LIVING STANDARDS IN THE FACE OF HIGHER TAXES 9304270026 930427 WHO'S NEWS LOCTITE CORP LOCTITE CORP HARTFORD CONN DAVID FREEMAN PRESIDENT WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER OF THIS SPECIALTY CHEMICALS CONCERN AS CHIEF EXECUTIVE MR FREEMAN 49 YEARS OLD SUCCEEDS KENNETH W BUTTERWORTH 67 WHO REMAINS CHAIRMAN 9304270025 930427 MARKETSCAN PET INC FIGHTS TO KEEP ITS BIG BRANDS BIG BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL PET INC IS USED TO BATTLING FOODINDUSTRY GIANTS LIKE CAMPBELL SOUP CO GENERAL MILLS INC AND KELLOGG CO THOSE SKIRMISHES HOWEVER COULD PALE BESIDE A LOOMING ATTACK ON PET'S NO 1 BRAND OLD EL PASO MEXICAN FOODS PEPSICO INC IS TESTMARKETING A LINE OF MEXICAN FOODS UNDER ITS WELLKNOWN TACO BELL BRAND AND WILL MARKET THE PRODUCTS NATIONALLY THROUGH THE COMPANY'S POWERFUL FRITOLAY SNACKFOOD DISTRIBUTION SYSTEM PET AWAITS THE ATTACK EVEN AS IT SEEKS TO STRENGTHEN ITS THREATENED POSITION IN THE SOUP AISLE WHERE ITS SECONDBIGGEST BRAND PROGRESSO REMAINS UNDER BOMBARDMENT FROM MARKET LEADER CAMPBELL AND CONAGRA INC THE COUNTRY'S LARGEST INDEPENDENT FOOD COMPANY MEANWHILE OTHER PET BRANDS ARE MIRED IN GROCERY CATEGORIES WITH LITTLE OR NO GROWTH THE BATTLE TO PROTECT OLD EL PASO COULD BE PROLONGED PET'S BRAND LOST MOMENTUM IN THE 12 WEEKS ENDED FEB 21 ACCORDING TO FIGURES FROM INFORMATION RESOURCES INC'S INFOSCAN SURVEY OF SUPERMARKET SALES IN THAT PERIOD OLD EL PASO SALES ROSE ONLY TWOTENTHS OF A PERCENTAGE POINT FROM A YEAR EARLIER WHILE THE OVERALL CATEGORY GREW 74 BOTH RUNNERUP PACE INC AND RJR NABISCO INC'S ORTEGA BRAND IN THIRD PLACE RACKED UP GOOD GROWTH BUT WHILE PEPSICO'S FIREPOWER CLEARLY IS SUPERIOR TO PET'S SOME ANALYSTS SAY THE OUTCOME ISN'T CERTAIN JOANNA SCHARF ROSSIEN FOOD ANALYST AT SG WARBURG & CO PREDICTS THAT THE TACO BELL LINE WILL LEAN MORE TOWARD AMERICANMEXICAN IN TASTES THAT COULD BE GOOD NEWS FOR PET WHICH INCREASINGLY IS MAKING ITS PRODUCTS HOTTER OR MORE AUTHENTICALLY MEXICAN WHERE MS ROSSIEN SAYS CONSUMER TASTES ARE TRENDING PET'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER MILES L MARSH IS PUTTING ON A BRAVE FACE WHILE WE RESPECT PEPSICO AS A MARKETER WE DON'T AGREE THAT THE TACO BELL BRAND IS A TREMENDOUS ADVANTAGE HE TOLD A RECENT ANALYSTS' BRIEFING ONE POTENTIAL PROBLEM FOR PEPSICO MR MARSH SAID IS THAT FOOD RETAILERS MIGHT RESIST STOCKING ITS NEW LINE WHY SHOULD THE GROCERY TRADE WANT TO SUPPORT A DIRECT COMPETITOR HE ASKED REFERRING TO ATTEMPTS BY SUPERMARKETS TO RECOUP TAKEOUT BUSINESS LOST TO FASTFOOD CHAINS SUCH AS TACO BELL BUT A SPOKESWOMAN FOR FRITOLAY SAYS THAT THE TACO BELL LINE ALREADY IS IN HUNDREDS OF STORES IN THE ATLANTA CINCINNATI AND COLUMBUS/DAYTON OHIO MARKETS AND THAT THE PRODUCTS HAVE BEEN WELLRECEIVED MR MARSH PROMISES TO FIGHT PEPSICO HARD EXPANDING ON ITS GEOGRAPHIC SEGMENTATION AND LINEEXTENSION STRATEGY PET HAS ALSO BEEN BOOSTING ITS MARKETING BUDGET AND STARTING NATIONAL TELEVISON ADVERTISING FOR SEVERAL MAJOR BRANDS IN THE SALSA CATEGORY FOR EXAMPLE PET INTRODUCED A BRAND IN CALIFORNIA AIMED PRIMARILY AT HISPANICS CALLED LAS PALMAS TODAY IT HOLDS 18 OF THE STATE'S SALSA MARKET PET ALSO IS TESTING AN EVEN THICKER VERSION OF OLD EL PASO THICK 'N CHUNKY SALSA MOREOVER IN A MOVE THAT TAPS THE EXPERTISE OF ITS PROGRESSO UNIT PET IS LAUNCHING A SIXFLAVOR LINE OF OLD EL PASOBRAND SOUTHWEST SOUPS IN ITS MAINSTREAM SOUP BUSINESS PET STILL IS FEELING A BIT SHELLSHOCKED FROM THE WAR WITH CAMPBELL AND CONAGRA FOR YEARS PROGRESSO HAD A PROFITABLE NICHE IN READYTOSERVE SOUPS THAT DON'T NEED WATER BUT IN RECENT MONTHS THE CATEGORY BECAME A BATTLEFIELD OF THE HEALTHIES CONAGRA STARTED IT WITH AN EXTENSION OF ITS HEALTHY CHOICE LINE OF FROZEN FOODS THEN CAMPBELL COUNTERED WITH HEALTHY REQUEST SOUP FEATURING REDUCED SODIUM INITIALLY PET DECIDED AGAINST COMING OUT WITH A NEW HEALTHY SOUP NEARLY TWOTHIRDS OF CONSUMERS WHO TRIED CHOICE AND REQUEST DIDN'T COME BACK FOR A SECOND HELPING MR MARSH SAYS BUT THE CONFLICT HEATED UP AS CAMPBELL AND CONAGRA POURED BIG BUCKS INTO THEIR MARKETING CAMPAIGNS THE RESULT WAS A PRICE PROMOTION THAT HURT PROGRESSO PET FINALLY RESPONDED ON TWO FRONTS FIRST IT MADE MODEST REFORMULATIONS IN ITS BASIC SOUP LINE NOTING ON LABELS THAT THE PRODUCT HAD ALWAYS BEEN LOW IN FAT AND CHOLESTEROL AND IN JANUARY PET INTRODUCED PROGRESSO HEALTHY CLASSICS FIVE VARIETIES THAT THE COMPANY SAYS TASTE BETTER THAN THOSE OF RIVALS EARLY CONSUMER RESPONSE HAS BEEN FAVORABLE WE'VE MADE SOLID PROGRESS SAYS PET'S MR MARSH BUT THE BATTLE ISN'T OVER CAMPBELL RECENTLY ADDED NEW VARIETIES TO ITS READYTOSERVE HOME COOKIN' LINE BY PET'S COUNT IT HAS ABOUT 28 OF THE READYTOSERVE MARKET FAR BEHIND CAMPBELL BUT AHEAD OF CONAGRA AND OTHER MAKERS AMID ALL THE PRESSURE PET'S BRIGHTEST CATEGORY MAY BE FROZEN WAFFLES WHERE ITS NO 2 RANKED DOWNYFLAKE BRAND HAS USED A PRICEVALUE CAMPAIGN TO STEAL CUSTOMERS FROM CATEGORY LEADER KELLOGG'S EGGO AND THE NO 3 BRAND QUAKER'S AUNT JEMIMA WITH CENTSOFF COUPONS INSTORE DISPLAYS AND PRINT ADS PROMISING MMMORE WAFFLES THAN RIVALS' PACKAGES CONTAIN DOWNYFLAKE SALES JUMPED 25 IN THE PAST YEAR ACCORDING TO INFOSCAN DATA BUT MUCH OF PET'S MARKETSHARE LEADERSHIP TOO MUCH FOR MANY WALL STREET ANALYSTS IS IN MATURE CATEGORIES WITH SLUGGISH GROWTH ITS VAN DE KAMP'S FROZENFISH LINE LEADS THAT CATEGORY WITH A 21 SHARE BUT BOTH GENERAL MILLS' GORTON'S AND CAMPBELL'S MRS PAUL'S BRANDS ARE ON ITS TAIL AND THE CATEGORY'S DOLLAR SALES ARE DOWN FROM A YEAR EARLIER ACCORDING TO INFOSCAN PET'S PETRITZ BRAND IS LIKEWISE THE LEADING FROZEN PIE SHELL BUT SALES OF THE CATEGORY WERE FLAT IN THE LATEST 52 WEEKS AND PET'S EVAPORATED MILK A BRAND THAT LONG MONOPOLIZED THE CATEGORY NOW FACES THE MARKETING MIGHT OF NESTLE SA'S CARNATION BRAND ONLY IN MEAT TENDERIZER WHERE IT HAS MARKET LEADER AC'CENT AND IN CANNED MEATS WITH UNDERWOOD DOES THE COMPANY FACE LITTLE COMPETITION BOTH CATEGORIES HOWEVER ARE SLOWGROWING FOODINDUSTRY ANALYSTS APPLAUD PET'S MANAGEMENT FOR MAKING THE MOST OF ITS LIMITED RESOURCES IN BATTLING BIGGER RIVALS BUT SOME QUESTION WHETHER THE COMPANY CAN REMAIN INDEPENDENT INDEED ON WALL STREET PET IS OFTEN MENTIONED AS A LIKELY TAKEOVER TARGET PET HAS A SIZE PROBLEM SAYS WARBURG'S MS ROSSIEN OVER TWOTHIRDS OF REVENUES ARE DERIVED FROM WEAK NICHE PRODUCTS SPUN OFF FROM WHITMAN CORP TWO YEARS AGO PET FOUND ITSELF WITH SEVERAL BRANDS THAT HAD BEEN ON STARVATION MARKETING DIETS ALREADY PET HAS HAD TO DUMP ONE OF ITS MAJOR BRANDS WHITMAN'S CHOCOLATES AFTER FAILING TO REVIVE IT IN FISCAL 1992 PET INCREASED CONSUMERMARKETING OUTLAYS BY 24 TO 93 MILLION AND RAN THE FIRST NATIONAL NETWORK TELEVISION COMMERCIALS FOR OLD EL PASO PROGRESSO AND VAN DE KAMP'S ANALYSTS EXPECT MARKETING OUTLAYS TO GROW BUT IF THE PENDING FIGHT WITH PEPSICO BECOMES A STANDOFF PET'S TREASURY COULD BE STRAINED HURTING OTHER BRANDS PROTECTING ITSELF COSTS A LOT OF MONEY SAYS ANALYST NOMI GHEZ OF GOLDMAN SACHS PET'S PROBLEM IS THAT IT DOESN'T HAVE A LOT OF STRENGTH IN OTHER AREAS TO OFFSET PRESSURE IN SOME OF ITS CORE BUSINESSES 9304270024 930427 WHO'S NEWS BURRBROWN CORP BURRBROWN CORP TUCSON ARIZ FRED L HANSON 53 YEARS OLD SAID HE LEFT THIS ELECTRONIC PARTS COMPANY AS PRESIDENT AND CHIEF EXECUTIVE OFFICER AFTER A DISAGREEMENT WITH THE BOARD CHAIRMAN THOMAS R BROWN JR 66 WILL ASSUME MR HANSON'S POSTS 9304270023 930427 ASARCO IS TOLD TO PAY 28 MILLION IN LAWSUIT OVER DENVER CLEANUP DENVER A STATE COURT JUDGE HAS HANDED NEIGHBORS OF ASARCO INC'S SMELTER HERE THE STIFFEST ENVIRONMENTAL DAMAGE AWARD IN THE STATE'S HISTORY THE 28 MILLION AWARD IS TARGETED FOR THE CLEANUP OF PRIVATE PROPERTY IN THE GLOBEVILLE NEIGHBORHOOD WHERE ASARCO'S CADMIUM SMELTER HAS OPERATED FOR 106 YEARS THE 567 RESIDENTS OF THE AREA FILED A CLASSACTION LAWSUIT AGAINST ASARCO IN 1991 AND A SIXWEEK TRIAL WAS RECENTLY CONCLUDED JURORS HELD THE COMPANY LIABLE FOR POLLUTING THE NEIGHBORHOOD WITH HEAVY METALS ASARCO A MINING AND METALS PRODUCER BASED IN NEW YORK SAYS IT PLANS TO APPEAL THE AWARD HANDED DOWN BY DENVER DISTRICT COURT JUDGE MORRIS B HOFFMAN THE COMPANY SAID IT BELIEVES THE AWARD IS INVALID IN LIGHT OF ITS AGREEMENT WITH THE STATE OF COLORADO TO CLEAN UP THE NEIGHBORHOOD UNDER THE STATE'S SUPERFUND LAWS THE STATE HAS ESTIMATED THE COST OF THAT CLEANUP AT BETWEEN 31 MILLION AND 38 MILLION THE COMPANY ALSO ARGUES THAT THE CLASSACTION CLASSIFICATION WAS IMPROPER AND THAT THE EVIDENCE IN THE CASE DOESN'T SUPPORT THE VERDICT THE ENVIRONMENTAL DAMAGE AWARD SURPASSES THE 185 MILLION JUDGMENT THAT WAS METED OUT AGAINST ROCKWELL INTERNATIONAL CORP LAST YEAR FOR HAZARDOUSWASTE CONTAMINATION AT THE ROCKY FLATS NUCLEAR WEAPONS FACILITY WEST OF DENVER THE ATTORNEY FOR THE RESIDENTS MACON COWLES CALLED THE JUDGMENT A VICTORY FOR THE COMMUNITY OF GLOBEVILLE WHICH HAS BEEN FIGHTING THIS CONTAMINATION FOR A LONG TIME HE SAID MOST OF THE MONEY THE COMPANY AGREED TO SPEND WITH THE STATE WILL GO TO CLEAN UP GROUNDWATER AND TOXIC WASTE PONDS NOT TO CLEAN UP THE NEIGHBORHOOD HE ALSO SAID HE WASN'T SURPRISED THE COMPANY HAS DECIDED TO APPEAL THE DECISION IT NEVER CEASES TO AMAZE ME HOW ASARCO GOES TO THE WALL ON EVERY SINGLE ISSUE TO AVOID CLEANING UP THE NEIGHBORHOOD THEY COULD HAVE SETTLED THIS CASE FOR A FRACTION OF WHAT IT'S ENDING UP COSTING THEM SEPARATELY ASARCO REPORTED A NET LOSS OF 309 MILLION OR 74 CENTS A SHARE IN THE FIRST QUARTER COMPARED WITH A LOSS OF 476 MILLION OR 115 A SHARE IN THE YEAREARLIER PERIOD IN THE YEAREARLIER FIRST QUARTER ASARCO'S LOSS REFLECTED A CHARGE OF 54 MILLION AFTER TAXES FOR ACCOUNTING CHANGES THE COMPANY SAID SALES DECLINED SLIGHTLY TO 4571 MILLION FROM 4589 MILLION IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE ASARCO SHARES WERE QUOTED AT 20 DOWN 375 CENTS 9304270022 930427 INTERNATIONAL CZECH RETAIL SALES RISE 201 PRAGUE RETAIL SALES IN THE CZECH REPUBLIC ROSE 201 IN FEBRUARY FROM A YEAR EARLIER THE STATE NEWS AGENCY CTK REPORTED RETAIL SALES AMOUNTED TO 269 BILLION KORUNA 963 MILLION IN THE MONTH ACCORDING TO THE NEWS AGENCY WHICH CITED FIGURES FROM THE CZECH STATISTICS OFFICE UNIT SALES VOLUME WAS ABOUT THE SAME AS IN 1992 GIVEN THE INCREASE IN CONSUMER PRICES THE PRIVATE SECTOR ACCOUNTED FOR 725 OF OVERALL SALES 9304270021 930427 FINANCING BUSINESS INTERACTIVE NETWORK INC INTERACTIVE NETWORK INC MOUNTAIN VIEW CALIF SAID IT IS WITHDRAWING FROM THE SECURITIES AND EXCHANGE COMMISSION A REGISTRATION FOR A PUBLIC OFFERING OF 25 MILLION COMMON SHARES THE INTERACTIVE TELEVISION COMPANY SAID IT HAD OBTAINED PRIVATE FINANCING INSTEAD PROCEEDS FROM THE PUBLIC OFFERING WERE INITIALLY INTENDED FOR EXPANSION PURPOSES THE PRIVATE FINANCING IS DESIGNED TO PURSUE OTHER THINGS THAT HAVE COME UP A SPOKESWOMAN SAID WITHOUT ELABORATION 9304270020 930427 MERGERS ACQUISITIONS DECLINED IN 1ST PERIOD IN NUMBER AND SIZE NEW YORK THE TOTAL VALUE OF MERGERS AND ACQUISITIONS IN THE FIRST QUARTER FELL 22 ACCORDING TO MERRILL LYNCH BUSINESS AND VALUATION A DIVISION OF MERRILL LYNCH & CO THE TOTAL VALUE OF PROPOSED MERGERS AND ACQUISITIONS FOR WHICH PRICES WERE DISCLOSED WAS 181 BILLION COMPARED WITH 231 BILLION IN THE YEAREARLIER PERIOD THE AVERAGE PRICE FELL 10 IN THE QUARTER THE TOTAL NUMBER OF MERGERS AND ACQUISITIONS SLIPPED 2 TO 569 FROM 581 HOWEVER DEALS BETWEEN US AND FOREIGN COMPANIES FELL TO 18 OF TOTAL TRANSACTIONS FROM 24 A YEAR EARLIER ONLY TWO OF THE LARGEST DEALS INVOLVED FOREIGN COMPANIES THE LARGEST BEING ANHEUSERBUSCH COS' PROPOSED ACQUISITION OF 18 OF GRUPO MODEL SA DE CV OF MEXICO VALUED AT 477 MILLION THE NUMBER OF FOREIGN BUYERS CONTINUED TO FALL IN THE FIRST QUARTER DOWN 39 TO 30 THE NUMBER OF US COMPANIES PROPOSING FOREIGN ACQUISITIONS FELL 22 TO 73 THE LARGEST TRANSACTION IN THE QUARTER WAS THE PROPOSED THREEWAY MERGER OF LDDS COMMUNICATIONS INC METROMEDIA CO AND RESURGENS COMMUNICATIONS CORP VALUED AT 22 BILLION THREE OF THE 15 LARGEST DEALS WERE IN THE COMMUNICATIONS INDUSTRY BANKING AND FINANCE AGAIN THE MOST ACTIVE INDUSTRY HAD FIVE OF THE FIFTEEN LARGEST DEALS THESE INCLUDED THE PROPOSED ACQUISITION OF MNC FINANCIAL INC BY NATIONSBANK CORP VALUED AT 14 BILLION NINE OF THE LARGEST TRANSACTIONS WERE DIVESTITURES IN WHICH A COMPANY SELLS A UNIT OR A MINORITY INTEREST IN ITSELF THE LARGEST WAS THE PROPOSED DIVESTITURE OF AMERICAN EXPRESS CO'S SHEARSON LEHMAN BROS BROKERAGE UNIT TO PRIMERICA CORP VALUED AT 1 BILLION 9304270019 930427 THE NEXT 100 DAYS BY JACK KEMP ALL REPUBLICANS INDEED ALL AMERICANS SHOULD COMMEND SEN BOB DOLE AND SENATE REPUBLICANS FOR BLOCKING PRESIDENT CLINTON'S SOCALLED STIMULUS PACKAGE A PORKBARREL SPENDING PLAN THAT DESERVED DEFEAT REGARDLESS OF THE ECONOMY'S HEALTH OR THE SIZE OF THE DEFICIT REPUBLICANS NOW HAVE AN OPPORTUNITY TO DEFEAT THE CLINTON TAX INCREASES AND TO GO TO THE AMERICAN PEOPLE WITH A SUPERIOR AGENDA FOR REAL JOBS REAL ECONOMIC GROWTH AND RENEWED AMERICAN LEADERSHIP IN THE GLOBAL ECONOMY THE FIRST ORDER OF BUSINESS MUST BE DEBUNKING THE DEMOCRATS' NOTION THAT HIGHER TAXES WILL LEAD TO A MORE PROSPEROUS AMERICA MR CLINTON ARGUES THAT HIS TAX INCREASES WILL REDUCE THE DEFICIT HIS THEORY IS THAT LOWER DEFICITS WILL REDUCE INTEREST RATES WHICH WOULD PRESUMABLY ALLOW BUSINESSES TO BORROW BACK THE MONEY THEY'LL BE PAYING IN HIGHER TAXES UNDER THE CLINTON PLAN ACTUALLY HIGHER TAXES WILL WEAKEN THE ECONOMY REDUCE REVENUES AND INCREASE THE DEFICIT THE CLINTON COURSE IS A REPEAT OF THE 1990 BUDGET AGREEMENT WHEN HIGHER TAXES ESPECIALLY ON THE RICH WERE SUPPOSED TO LOWER THE DEFICIT INSTEAD THE DEFICIT INCREASED TO 5 OF GROSS DOMESTIC PRODUCT IN 1992 FROM 31 IN 1990 SLOWER GROWTH COMPARED WITH THE FOUR YEARS BEFORE THE DEAL COST THE TREASURY 180 BILLION IN LOST REVENUES IN 1992 ALONE ACCORDING TO ECONOMIST LAWRENCE KUDLOW BUT DEMOCRATS COUNTER RAISING TAX RATES ON THE WEALTHY WILL AT LEAST FORCE THEM TO PAY THEIR FAIR SHARE THE TRUTH IS WEALTHY AMERICANS CAN EASILY SHIFT MONEY OUT OF INVESTMENTS THAT CREATE JOBS INTO UNPRODUCTIVE TAX SHELTERS OR AVOID PAYING TAXES BY REDUCING EARNINGS IN FAVOR OF NONTAXED FRINGE BENEFITS REP JOHN KASICH SEN HANK BROWN AND THE HERITAGE FOUNDATION HAVE PUT FORWARD EXCELLENT PLANS TO REDUCE THE SIZE OF GOVERNMENT AND SHRINK THE DEFICIT WITHOUT RAISING TAXES THE KEY NOW IS UNITING THESE BUDGET PLANS WITH A PROGROWTH AGENDA THAT REALLY PUTS PEOPLE FIRST NOT GOVERNMENT HERE ARE SOME IDEAS FOR A REPUBLICAN GROWTH AGENDA ENCOURAGE ENTREPRENEURSHIP SAVING AND INVESTMENT THE BEST WAY TO REKINDLE THE JOBCREATING POWER OF AMERICA'S ENTREPRENEURS IS TO EXPAND THE SUPPLY OF RISK CAPITAL AVAILABLE TO FINANCE CREATIVE NEW IDEAS AND DEVELOP NEW PRODUCTS ALL PROVISIONS IN THE TAX CODE AFFECTING SAVING AND INVESTING SHOULD BE IMMEDIATELY INDEXED TO STOP THE CORROSIVE EFFECT OF INFLATION THIS INCLUDES INDEXING CAPITAL GAINS TAXES DEPRECIATION ALLOWANCES CORPORATE TAX RATES AND RETIREMENT PLANS SUCH AS IRAS AND 401KS IN A SPEECH AT HARVARD BUSINESS SCHOOL TED FORSTMANN OF FORSTMANN LITTLE USED A STRIKING EXAMPLE TO ILLUSTRATE THE DETRIMENTAL EFFECT OF INFLATION ON SAVING CONSIDER A FAMILY WHO INVESTED 10000 IN STOCKS IN 1971 AND RETIRED 20 YEARS LATER WITH A PORTFOLIO WORTH 37000 AFTER INFLATION THE REAL VALUE IS UNCHANGED BUT BECAUSE OUR CAPITAL GAINS TAX IS UNINDEXED THE FAMILY IS LIABLE FOR A TAX OF NEARLY 10000 ON A TOTALLY ILLUSORY GAIN THUS IN REALITY WE'RE NOT TAXING CAPITAL GAINS BUT THE FORMATION OF CAPITAL ITSELF IF WE REALLY WANT TO ENCOURAGE ENTREPRENEURIAL CAPITALISM AND NEW BUSINESSES ULTIMATELY WE SHOULD PHASE OUT THE CAPITAL GAINS TAX ALTOGETHER ON LONGTERM INVESTMENTS AND ELIMINATE IT FOR ANYONE WHO WORKS SAVES OR INVESTS IN AMERICA'S LOWINCOME COMMUNITIES TAX RELIEF FOR FAMILIES AND WORKING AMERICANS THE 1990 BUDGET AGREEMENT STARTED A TREND TOWARD HIGHER TAX RATES COMBINED WITH INEFFICIENT TAX LOOPHOLES THE GOP SHOULD SUPPORT THE OPPOSITE APPROACH BY ADVOCATING A FLATTER FAIRER AND SIMPLER TAX SYSTEM THAT REWARDS SUCCESS INSTEAD OF PUNISHING IT TO SPUR JOB CREATING WE SHOULD ADOPT THE MAIN THRUST OF SEN MOYNIHAN'S PLAN TO REDUCE THE PAYROLL TAX CURRENTLY THE GREATEST BURDEN ON MIDDLECLASS FAMILIES AND SMALL BUSINESSES SINCE THE MID1960S THE PAYROLL TAX HAS MORE THAN DOUBLED FROM 725 TO 153 TODAY MIDDLEINCOME FAMILIES NOW FACE AN EFFECTIVE MARGINAL TAX RATE ON ALL INCOME OF OVER 30 COMPARED WITH LESS THAN 20 30 YEARS AGO REDUCING THIS TAX WOULD EXPAND EMPLOYMENT BY LOWERING THE COST OF HIRING ADDITIONAL WORKERS AND INCREASING THE REWARD FOR WORKING FOR UNEMPLOYED AMERICANS REPUBLICANS MUST ALSO CHAMPION TAX REFORM THAT RECOGNIZES THE FAMILY AS AMERICA'S PARAMOUNT VALUESHAPING INSTITUTION ECONOMIC GROWTH IS NOT AN END IN ITSELF THE MORAL SPIRITUAL AND CULTURAL HEALTH OF OUR NATION IS INEXTRICABLY LINKED WITH THE STRENGTH OF THE AMERICAN FAMILY THAT STRENGTH IS BEING UNDERMINED BY GOVERNMENT POLICIES BOTH ECONOMIC AND SOCIAL WHICH ARE BIASED AGAINST MARRIAGE AND FAMILIES WITH CHILDREN FOR EXAMPLE INCREASING THE DEPENDENT EXEMPTION WHICH HAS BEEN ERODED BY INFLATION WOULD HELP PARENTS KEEP THE RESOURCES THEY NEED TO RAISE EDUCATE AND NURTURE THEIR CHILDREN SPENDING RESTRAINT SPENDING RESTRAINT AND REGULATORY RELIEF SHOULD BE PART OF AN OVERALL REPUBLICAN PHILOSOPHY OF LIMITED GOVERNMENT GOVERNMENT SPENDING ABSORBS VALUABLE RESOURCES OFTEN FOR INEFFICIENT AND WASTEFUL PURPOSES WE SHOULD BE COMMITTED TO REDUCING THE BURDEN OF GOVERNMENT ON OUR ECONOMY WHETHER THE BUDGET IS IN DEFICIT OR SURPLUS WHILE CUTTING WASTEFUL SPENDING REPUBLICANS SHOULD PROPOSE STRONG BUDGET CAPS TO RESTRAIN GOVERNMENT SPENDING GROWTH CAPPING THE RATE OF ENTITLEMENT GROWTH EXCEPT SOCIAL SECURITY AT INFLATION PLUS POPULATION GROWTH WOULD SAVE MORE THAN 250 BILLION OVER FIVE YEARS HOWEVER REAL SPENDING CONTROL REQUIRES INSTITUTIONAL CHANGES TO ENFORCE ACCOUNTABILITY IN THE FEDERAL BUDGET PROCESS A LINEITEM VETO WHICH GOV CLINTON USED IN ARKANSAS WOULD HELP THE PRESIDENT ELIMINATE PORKBARREL SPENDING FREE TRADE OPENTRADING POLICIES HELPED EXPAND THE GLOBAL EXPORT MARKET TO 31 TRILLION BY 1989 MR CLINTON IS DANGEROUSLY REVERSING COURSE BY THREATENING TRADE WARS WITH EUROPE AND JAPAN TO COMPETE IN THE GLOBAL ARENA WHILE RAISING TAXES CLOSING OFF MARKETS AND DELIBERATELY DEVALUING OUR CURRENCY IS THE ECONOMIC EQUIVALENT OF UNILATERAL DISARMAMENT ALREADY THE CLINTON ADMINISTRATION HAS SLAPPED TARIFFS AVERAGING 27 ON IMPORTED STEEL AND THREATENS TO RAISE TARIFFS ON MINIVANS BY 1000 WHILE PRESIDENT CLINTON PUBLICLY SUPPORTS THE NORTH AMERICAN FREE TRADE AGREEMENT THE ONLY THING HE SEEMS DETERMINED TO EXPORT TO MEXICO ARE AL GORE'S APOCALYPTIC ENVIRONMENTAL POLICIES THE KEY TO U S AND GLOBAL ECONOMIC GROWTH LIES IN OPENING NEW MARKETS TO GOODS AND SERVICES PASSING A CLEAN MUTUALLY BENEFICIAL NAFTA AGREEMENT AND COMPLETING THE FLOUNDERING URUGUAY ROUND OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE ARE THE FIRST PRIORITIES THE NEXT STEP IS TO MOVE BEYOND NAFTA BY NEGOTIATING A SERIES OF MARKETOPENING TRADE AGREEMENTS CULMINATING IN A HEMISPHERIC FREETRADE ZONE ARGENTINA VENEZUELA AND CHILE EACH RECORDED GDP GROWTH RATES OF 9 OR BETTER LAST YEAR WITH SLOWING INFLATION THESE COUNTRIES ALONG WITH OTHER LATIN AMERICAN NATIONS REPRESENT THE MARKETS OF THE 21ST CENTURY FOR THE US OUR ULTIMATE GOAL SHOULD BE TO INCORPORATE THE PACIFIC RIM NATIONS RUSSIA AND OTHER FORMER COMMUNIST STATES INTO AN OPEN GLOBAL TRADING SYSTEM THE CLINTON POLICIES ARE THE MOST LIBERAL OF ANY ADMINISTRATION IN THIS CENTURY AND MUST BE STOPPED TO PREVENT THEM FROM HURTING AMERICA NOW IS THE TIME FOR REPUBLICANS TO ONCE AGAIN RAISE THE BANNER OF ECONOMIC GROWTH LOW TAXES LIMITED GOVERNMENT STRONG FAMILIES AND EQUALITY OF OPPORTUNITY FOR ALL NOTHING COULD PRODUCE A SHARPER CONTRAST WITH THE POLICIES OF THE CLINTON ADMINISTRATION OR BETTER PREPARE THE GOP FOR VICTORY IN THE 1994 ELECTIONS MR KEMP IS A FORMER CONGRESSMAN AND WAS SECRETARY OF HOUSING AND URBAN DEVELOPMENT DURING THE BUSH ADMINISTRATION HE IS CURRENTLY CODIRECTOR OF EMPOWER AMERICA A CONSERVATIVE ADVOCACY ORGANIZATION IN WASHINGTON 9304270018 930427 BUSINESS WORLD AT RISK IN THE MARKETPLACE INSTEAD OF THE STREETS BY TIM W FERGUSON SCHOOL REFORM APPRENTICESHIPS BETTER PARENTING EVEN THE GOOD IDEAS FOR AVOIDING ANOTHER LOST GENERATION OF YOUNG WASHOUTS IN AMERICA WON'T HELP WITH THE PRESENT PLIGHT IT IS THIS IN ADDITION TO BORED AND OFTEN BOORISH LEGIONS OF NOGOAL TEENS IN THE SUBURBS THE US HAS MORE THAN A MILLION UNDER AGE 25 IN ITS URBAN CENTERS WHO ARE UNEMPLOYED AND UNENROLLED MANY OF THEM ARMED FOR MAYHEM OR PREGNANT WITH THE NEXT BUNDLE OF TROUBLE REMEDIATION SUMMER JOBS AND NATIONAL SERVICE ARE LIBERAL PALLIATIVES FOR THIS CRISIS NONE IS LIKELY TO CHANGE THE FUNDAMENTAL DYNAMICS OF CITY STREETS THE ONLY WAY SHORT OF A MASS SPIRITUAL CONVERSION FOR TRANSFORMING LIVES IN A HURRY IS A FLOWERING OF LICIT ENTREPRENEURSHIP DOZENS OF SMALL EFFORTS AROUND THE COUNTRY ARE TRYING TO ENCOURAGE ENTERPRISE WHERE IT HAS BEEN RARE BUT ONLY A HANDFUL TARGET THE YOUNG ONE OF THOSE HELD AN ALLDAY SESSION RECENTLY AT LOYOLA MARYMOUNT UNIVERSITY IN LOS ANGELES THE PROJECT IS CALLED AN INCOME OF HER OWN AND AS THAT WOOLFISH TITLE SUGGESTS IT HAS A NARROWER AIM STILL TO GET HIGHSCHOOL GIRLS THINKING ABOUT STARTING BUSINESSES IT'S A BRAINCHILD OF JOLINE GODFREY AUTHOR OF A BOOK ON WOMENOWNED COMPANIES AND AN ENTREPRENEUR HERSELF IT HAS NO SOCIOECONOMIC STRATUM IN MIND MS GODFREY NOW OF OJAI CALIF BELIEVES THAT FOR HER SEX POVERTY CUTS ACROSS CLASS WHEN MALE BREADWINNERS LEAVE THE SCENE WHERE WOMEN HAVE PLUNGED INTO BUSINESS IT'S USUALLY HAPPENED WELL INTO ADULTHOOD WHEN CIRCUMSTANCES PERMITTED OR FORCED IT THE MESSAGE OF INCOME IS THAT OWNERSHIP IS A GOOD PLACE TO START OUT AND NOT JUST TO END UP IN REACHING OUT TO ABOUT 600 TEENS AT CONFERENCES IN THIS INAUGURAL YEAR MS GODFREY AND PARTNER KAREN SCHAFER HAVE DRAWN ON SCHOOLS AND YOUTH GROUPS IN A HALFDOZEN MAJOR CITIES AND ONE OR TWO INDIAN RESERVATIONS THEY'VE WELCOMED WARDS OF THE COURTS AND UNWED MOTHERS SO DESPITE ITS POTENTIAL APPEAL TO DAUGHTERS OF AFFLUENCE THE PROGRAM IS HEAVIER ON PIGMENT THAN PEARLS SEPARATELY THEY'VE ADVERTISED IN SASSY MAGAZINE A CONTEST FOR DESIGNING BUSINESS PLANS AND HAVE RECEIVED 5000 INQUIRIES THROUGH GROUP DISCUSSIONS GAMES AND INSPIRATIONAL TALKS BY SMALLBUSINESS WOMEN THE SESSIONS ATTEMPT TO OVERCOME INHIBITIONS ABOUT RISKING A BUCK TO MAKE A FEW ONE OF THE FIRST DRILLS INVOLVES SIMPLY FINDING AND CLAIMING HIDDEN CASH AFTER WHICH THE GROUP CHANTS PEOPLE LIKE TO GIVE ME MONEY THE OBVIOUS MESSAGE IS NOT TO BE SHY ABOUT SEEKING AND REALIZING GAIN PRESUMABLY THIS WOULD NOT BE NECESSARY IN A ROOMFUL OF BOYS MONEY IS CELEBRATED BUT AS A BASIS FOR INDEPENDENCE THE GATHERINGS HAVE A DISTINCT FEMINIST FLAVOR AND RESPONSIBILITY TO A COMMUNITY IS ALSO STRESSED BUT THERE ARE NO GUIDELINES FOR LIVING OR ANY OTHER FORM OF VALUES EDUCATION WE DEAL WITH WHAT'S REAL SAYS MS GODFREY THAT MEANS ACCEPTING BEHAVIORS THAT THE WHOLE RIGHT HALF OF THE COUNTRY MIGHT CONSIDER SELFDESTRUCTIVE THIS IS ABOUT BUILDING HOPE RATHER THAN GIVING A MODEL SHE ADDS LIFE HAS A LOT OF UNEXPECTED TWISTS AND TURNS UNCERTAINTY IS A PARTICULAR FACT OF URBAN LIFE BUT THE FOUNDER OF A SLIGHTLY OLDER AND BIGGER PROGRAM THINKS THE VERY UNSTEADINESS THAT IS COMMONLY BLAMED FOR POOR SCHOLASTIC PERFORMANCE THERE ACTUALLY GIVES YOUNGSTERS AN EDGE IN THE WORLD OF ENTERPRISE STEVE MARIOTTI GOT HIS FIRST GRANT FOR THE NATIONAL FOUNDATION FOR TEACHING ENTREPRENEURSHIP FROM CAPITALISTHUMANITARIAN RAY CHAMBERS FIVE YEARS AGO NOW THE NEW YORKBASED OPERATION IS PUTTING 2500 KIDS A YEAR SOME AS YOUNG AS FIRST GRADE AND 88 OF THEM ON WELFARE THROUGH 80HOUR MINI MBA COURSES THEY ARE TO SET UP SHOP AND ABIDE BY THREE MAXIMS BUY LOW SELL HIGH AND KEEP GOOD RECORDS UNDERNEATH THAT GLIBNESS THE ACCENT IS ON DEFERRED GRATIFICATION AND RESPECT FOR PROPERTY RIGHTS THAT MAKES SAVING AND PLANNING WORTHWHILE NFTE NIFTY STUDENT ENTITIES RANGE FROM SIMPLE ACCESSORY LINES TO A RESTAURANT AND A CONSTRUCTION FIRM FIELD TRIPS GO FIRST TO A WHOLESALE MART AND THEN A FLEA MARKET TO SEE THE LOWHIGH CYCLE IN ACTION TO THE GOVERNMENT BUILDING WHERE STARTUPS MUST REGISTER AND TO AN ACTUAL PLACE OF BUSINESS IF THE PROGRAM WHICH IS NOW IN SEVERAL CITIES IS NEAR A STOCK EXCHANGE AN EXCURSION THERE ATTEMPTS TO TIE ITS ACTIVITIES TO THE WORLD OF SIDEWALK MERCHANDISING MR MARIOTTI OVERSEES A FEW DOZEN FACULTY SELECTED FROM SCHOOLTEACHERS MOST ADEPT AT WORKING WITH AT RISK CHILDREN THOSE WHO LIKE HIM CAN BOAST OF BOTH BUSINESS AND CLASSROOM EXPERIENCE ARE MOST IN DEMAND BUT HALF OF NFTE'S BEST INSTRUCTORS LACK A PRACTICAL BACKGROUND HE SAYS WHAT'S MOST IMPORTANT IS THEIR ORIENTATION WE LOOK FOR PEOPLE WHO ARE PRO THE MARKET SYSTEM HE EXPLAINS IT'S VERY DIFFICULT TO TAKE PEOPLE WHO ARE BASICALLY SOCIALIST AND HAVE THEM TEACH THIS SYSTEM IT'D BE LIKE ME TEACHING THE PIANO I'M TONEDEAF THE TEACHERS ARE EMPOWERED TO RUN WHAT ARE EFFECTIVELY MINOR PROFIT CENTERS AND THUS ENJOY STATURE THAT A BUREAUCRATIC SCHOOL SYSTEM FREQUENTLY DENIES THEM FOR MANY OF THEIR CHARGES ALSO THE NFTE ARRANGEMENT IS A CHANCE TO ESCAPE A STIFLING HIERARCHY IN THE SCHOOLS THAT MR MARIOTTI SAYS ENGENDERS RAGE BY FAILING TO GAUGE REAL POTENTIAL THE MARKETPLACE OFFERS INNERCITY YOUTHS A CHANCE TO REDEFINE THEIR STATUS WHAT'S CALLED STREET SMART WE CALL BUSINESS SMART SAYS MR MARIOTTI PEOPLE WHO LIVE UNDER STRESS AND AMBIGUITY BECOME COMFORTABLE WITH RISK WHICH IS THE HALLMARK OF THE ENTREPRENEUR NFTE ENROLLEES ARE STAKED WITH 125 AND EXPECTED TO MAINTAIN PROPER ACCOUNTS FILE BUSINESS PLANS AND ADVERTISE THEIR WARES A RECENT SURVEY OF GRADUATES FOUND 15 OF THE BUSINESSES STILL ALIVE ALL ALONG THEY MUST ALSO REPORT INCOME TO THE IRS WHICH IS UNSPARING ACCORDING TO MR MARIOTTI THE 39YEAROLD FOUNDER COMPLAINS THAT TAX CODES AT EACH LEVEL OF GOVERNMENT ARE UNFATHOMABLE YET THE PROGRAM PARTICIPANTS CANNOT AFFORD AN ACCOUNTANT OR LAWYER TO HELP THEM THEY ARE ALSO CONFOUNDED BY STATE AND LOCAL REGULATIONS AND PERMITS WHICH MR MARIOTTI IS CONVINCED ARE WRITTEN TO HOLD DOWN COMPETITION FROM BARELY CAPITALIZED UPSTARTS THE BEST GOVERNMENT POLICY FOR INVIGORATING URBAN ENTERPRISE WOULD BE ONE THAT SIMPLIFIED TAX AND OTHER LAWS HE ARGUES BEYOND THAT A GENERAL EMPHASIS ON THE OPPORTUNITIES SPOTLIGHTED BY ENDEAVORS SUCH AS HIS AND MS GODFREY'S COULD BRING ABOUT THE SORT OF CULTURAL CHANGEOVER HE SAYS THAT THE PERSONALCOMPUTER REVOLUTION HAS BROUGHT TO MOST RUNGS OF SOCIETY IN LESS THAN A DECADE SOME INNOVATIVE FOUNDATIONS AND EVEN A COUPLE OF FEDERAL AGENCIES THUS FAR HAVE GOTTEN BEHIND THESE UNDERTAKINGS SO THERE IS A BASIS FOR SHORTTERM HOPE AMID THE IRRELEVANCIES OF THE DEBATE OVER THE NATION'S MOST DANGEROUS DOMESTIC PROBLEM 9304270017 930414 PRICING HEALTH CARE BLANKET MENTAL HEALTH COVERAGE CRAZY BY RICHARD E VATZ DESPITE A GENERAL MOVEMENT ACROSS THE COUNTRY IN COMMERCIAL AND PRIVATE INSURANCE TO RESTRICT MENTAL HEALTH COVERAGE THE CLINTON ADMINISTRATION HAS ANNOUNCED PLANS TO EXPAND COVERAGE PERHAPS BOTH BY GOVERNMENT AND PRIVATE INSURERS SPENDING ON MENTAL HEALTH BENEFITS IS NOW ESTIMATED TO CONSTITUTE 10 OF ALL SPENDING FOR HEALTH CARE OR ALMOST 70 BILLION THE NEW POLICY WHOSE DETAILS HAVE NOT BEEN COMPLETELY WORKED OUT YET COULD ADD TENS OF BILLIONS OF DOLLARS TO THAT BILL AND EVEN MORE IF COVERAGE OF MENTAL ILLNESS WERE TREATED AT PARITY WITH PHYSICAL ILLNESSES THE ADMINISTRATION JUSTIFIES ITS PLAN THROUGH THE ACCEPTANCE OF THE MENTAL HEALTH FIELD'S FAVORITE CLICHE MENTAL ILLNESS IS LIKE ANY OTHER ILLNESS THE CLINTON TASK FORCE'S CONFIDENTIAL REPORT IS QUOTED IN THE MARCH 16 NEW YORK TIMES AS SAYING CONTRARY TO PERSISTENT MYTH MENTAL ILLNESSES ARE BOTH REAL AND DEFINABLE MOREOVER IT SAYS THE DIVISION OF DISEASES INTO MEDICAL AND MENTAL TYPES BECOMES MORE ARBITRARY WITH EVERY NEW STUDY THE VIEW THAT ALL MENTAL ILLNESSES ARE COMPARABLE TO PHYSICAL ILLNESSES HAS BEEN PROMOTED BY PSYCHIATRY IN RECENT YEARS AND IS LINKED TO INSURANCE COVERAGE IN THE JOURNAL OF ABNORMAL PSYCHOLOGY MEMBERS OF THE AMERICAN PSYCHIATRIC ASSOCIATION'S TASK FORCE ON THE REVISION OF THEIR DIAGNOSTIC MANUAL ADMIT THAT UNFORTUNATELY IN MOST INSTANCES BIOLOGICAL TESTS CAN NOT BE USED EVEN AS DIAGNOSTIC INDICATORS SINCE SUCH TESTS ARE NOT SPECIFIC TO PARTICULAR MENTAL DISORDERS THE APA TASK FORCE ALSO ADMITTED THAT THERE ARE THOSE WHO WANT SOME OR ALL MENTAL DISORDERS DESIGNATED AS DISEASES IN ORDER TO PROTECT REIMBURSEMENT AND RESEARCH FUNDING LINKING ALL MENTAL ILLNESS TO PHYSICAL ILLNESS HAS BEEN ACCOMPLISHED THROUGH A SOPHISTICATED BAITANDSWITCH STRATEGY THE AMERICAN HERITAGE DICTIONARY DEFINES BAIT AND SWITCH AS A SALES TACTIC IN WHICH A BARGAINPRICED ITEM IS USED TO ATTRACT CUSTOMERS WHO ARE THEN ENCOURAGED TO PURCHASE A MORE EXPENSIVE SIMILAR ITEM HOW DOES PSYCHIATRY'S BAIT AND SWITCH WORK BIOLOGICAL PSYCHIATRISTS BELIEVE THEY HAVE ESTABLISHED IN RECENT YEARS THAT SCHIZOPHRENIA IS A DISEASE AS EVIDENCED IN THE STRUCTURAL AND CHEMICAL ABNORMALITIES DISCOVERED IN THE BRAINS OF SOME SCHIZOPHRENICS THIS CLAIM IS NOT WITHOUT DISPUTE NO LAB TEST IS USED TO DIAGNOSE SCHIZOPHRENIA AND THE DIAGNOSTIC CRITERIA ARE NONMEDICAL REGARDLESS THE NOTION THAT SOME PEOPLE LABELED SCHIZOPHRENIC HAVE A BRAIN DISEASE IS NOW GENERALLY ACCEPTED HAVING PROVIDED SOME INTERESTING EVIDENCE AND HAVING WON ACCEPTANCE FOR THE VIEW THAT ONE TYPE OF MENTAL ILLNESS MAY BE A BONA FIDE DISEASE MENTAL HEALTH INTERESTS TRY TO TRANSFER THE CREDIBILITY OF SCHIZOPHRENIA RESEARCH TO IMPLY THAT ALL THAT IS CALLED MENTAL ILLNESS CONSTITUTES PROVEN BRAIN DISEASE THE HOPE IS APPARENTLY THIS IF IT IS ACCEPTED THAT AN IDENTIFIABLE BRAIN DISEASE LIES AT THE ROOT OF SOME BEHAVIORS LABELED AS SCHIZOPHRENIC THE PUBLIC WILL SIMPLY ASSUME THAT AN ESTABLISHED BRAIN DISEASE IS AT THE ROOT OF THE TREMENDOUS RANGE OF BEHAVIORS THAT HAVE AT TIMES BEEN LABELED AS MENTALLY ILL BUT FOR THE PREPONDERANCE OF THE BEHAVIORS CALLED MENTAL ILLNESS THERE IS NO COMPARABLE BIOLOGICAL LINK AND FOR MOST NO LINK AT ALL HOW MANY PEOPLE ARE SEEN BY PSYCHIATRY AS MENTALLY ILL AND HOW IS IT DETERMINED AS YALE PSYCHIATRY PROF JAY KATZ CONCEDED SEVERAL YEARS AGO IF YOU LOOK AT THE DIAGNOSTIC MANUAL YOU CAN CLASSIFY ALL OF US UNDER ONE RUBRIC OR ANOTHER OF MENTAL DISORDER INDEED THE NATIONAL INSTITUTE OF MENTAL HEALTH NIMH CLAIMS THAT IT HAS DETERMINED THROUGH INTERVIEWS BY LAY INTERVIEWERS THAT MORE THAN 25 OF ADULTS IN AMERICA HAVE AT LEAST ONE PSYCHIATRIC DISORDER WITHIN ANY ONEYEAR PERIOD AND THEY WARN THAT THIS MAY BE AN UNDERESTIMATION AND THAT THERE IS A 29 TO 38 LIFETIME PREVALENCE THUS THE MENTALHEALTH FIELD WANTS IT BELIEVED THAT THE 52 MILLION ADULTS WHO HAVE A MENTAL DISORDER ACCORDING TO NIMH'S DIVISION OF EPIDEMIOLOGY AND SERVICES RESEARCH HAVE SOMETHING ON THE ORDER OF SCHIZOPHRENIA OR SEVERE DEPRESSION IT JUST ISN'T TRUE NIMH ITSELF CLAIMS ABOUT 1 OF THE PUBLIC IS SCHIZOPHRENIC AND THAT A TOTAL OF 45 SUFFER FROM WHAT NIMH CALLS SEVERE MENTAL ILLNESS INCLUDING SCHIZOPHRENIA BIPOLAR DISORDER EG MANIC DEPRESSION AND MAJOR DEPRESSION WHERE DO THE REST OF THE MILLIONS COME FROM WELL THEY COME FROM EVERYWHERE MOST OF THE 25PLUS OF THE PUBLIC SEEN AS MENTALLY ILL HAVE WHAT PSYCHIATRIST THOMAS SZASZ CALLS PROBLEMS IN LIVING DIFFICULTIES THAT MAY WELL BE EXPECTED IN A COMPLEX INDUSTRIALIZED MODERN SOCIETY AND WHAT IS THE TREATMENT THAT SOME OF THEM SEEK AND THAT MENTAL HEALTH INTERESTS SAY THEY ALL NEED A TREMENDOUS AMOUNT OF WHAT PASSES FOR MEDICAL TREATMENT IN THE MENTAL HEALTH PROFESSIONS IS SIMPLY COUNSELING COSTLY COUNSELING ONE ESTIMATE OF THE COST OF OUTPATIENT PSYCHOTHERAPY IN AMERICA PUTS IT AT 25 OF TOTAL HEALTHCARE EXPENDITURES WITH GREAT EASE NOT ONLY PSYCHIATRISTS BUT PSYCHOLOGISTS AND OTHER THERAPISTS CAN AND DO RECEIVE THIRDPARTY REIMBURSEMENTS FOR COUNSELING PEOPLE WHO EVEN BY THE LIBERAL DEFINITIONS OF MENTAL ILLNESS HAVE NO SUCH CONDITION A MARRIED COUPLE DOESN'T GET ALONG AND SEES A PSYCHOLOGIST OR A PSYCHIATRIST COUNSELING FOR THEIR MARITAL PROBLEMS CAN BE REIMBURSABLE THROUGH HEALTHCARE INSURANCE BECAUSE ALL THE MENTAL HEALTH CARE PRACTITIONER HAS TO DO IS APPLY ANY PLAUSIBLE DIAGNOSTIC CATEGORY TO ONE OF THE COUPLE SUCH AS ADJUSTMENT DISORDER A CATCHALL MENTAL DISORDER DEFINED BY PSYCHIATRY'S DIAGNOSTIC MANUAL AS A MALADAPTIVE REACTION TO AN IDENTIFIABLE PSYCHOSOCIAL STRESSOR LET US CONCEDE THAT THE BEST ESTIMATE OF THE PERCENTAGE OF AMERICANS WHO IN ONE YEAR SUFFER FROM SEVERE PSYCHIATRIC DISORDERS IS NIMH'S CLAIM OF ABOUT 5 THAT IS A DISPUTABLE FIGURE BUT LET'S CONCEDE IT ALONG WITH THE FACT THAT AMERICANS MIGHT SUPPORT CARE FOR SUCH PROFOUNDLY UNHAPPY OR DISTRESSED PEOPLE WHETHER THEY ARE GENUINELY ILL OR NOT THIS WOULD EXCLUDE THE OVERWHELMING MAJORITY OF THOSE LABELED AS MENTALLY ILL THE CLINTON ADMINISTRATION SHOULD DO WHAT MANY EMPLOYERS HAVE DONE WITH MENTAL HEALTH BENEFITS SEPARATE THEM FROM OTHER MEDICAL BENEFITS AND SIGNIFICANTLY LIMIT OR ELIMINATE VISIT AND AMOUNT COVERAGE FOR ALL BUT SEVERE MENTAL DISORDERS OTHERWISE EXPECT SPURIOUS CLAIMS ESPECIALLY IN THE AREA OF TALK THERAPY TO SURGE MR VATZ IS A PROFESSOR AT TOWSON STATE UNIVERSITY LEE S WEINBERG AN ASSOCIATE PROFESSOR AT THE UNIVERSITY OF PITTSBURGH ASSISTED WITH THE ARTICLE BOTH ARE ASSOCIATE PSYCHOLOGY EDITORS OF USA TODAY MAGAZINE A NATIONAL MONTHLY SEE RELATED LETTERS LETTERS TO THE EDITOR THE PHYSICAL REALITY OF MENTAL ILLNESS WSJ 4/27/93 9304140087 9304270016 930427 UP IN THE PYRENEES ANDORRA HAS BECOME LATEST MOUSE TO ROAR PEEWEE GETAWAY SEVERS ITS TIES WITH PAST AND HAS BIG IDEAS ON AN INDEPENDENT FUTURE BY TONY HORWITZ STAFF REPORTER OF THE WALL STREET JOURNAL ESCALDES ANDORRA IN THIS LILLIPUTIAN STATE A PRESIDENTIAL MOTORCADE CONSISTS OF OSCAR RIBAS AT THE WHEEL OF HIS CAR STUCK IN TRAFFIC ON CHARLEMAGNE AVENUE PATIENTLY LIGHTING HIS PIPE HE POINTS AT A MAN LOITERING BY THE CURB HE IS ONE OF OUR SECRET POLICEMEN MR RIBAS SAYS OF COURSE EVERY ANDORRAN KNOWS THAT MR RIBAS IS EVEN MORE CONSPICUOUS HE IS ANDORRA'S CAP DE GOVERN AND A COLLECTOR OF VINTAGE CARS INCLUDING A RED '57 MERCEDES CONVERTIBLE IN WHICH HE OFTEN TOURS HIS PUNY LAND ONETENTH THE SIZE OF DELAWARE HE ALSO KNOWS OR IS RELATED TO VIRTUALLY EVERY ONE OF HIS FELLOW CITIZENS ALL 12000 OF THEM YET A HALFHOUR SPIN ALONG ANDORRA'S MAIN STREET PRODUCES NOT A SINGLE NOD OF RECOGNITION FOR ANDORRANS THE BEST GOVERNMENT IS NO GOVERNMENT EXPLAINS MR RIBAS WHO WAS CHOSEN HEAD OF STATE BY ANDORRA'S ELECTED PARLIAMENT IT WOULD BE ALMOST EMBARRASSING FOR PEOPLE TO ACKNOWLEDGE WHO I AM SOON KEEPING SUCH A LOW PROFILE WON'T BE EASY FOR MR RIBAS OR FOR HIS REMOTE HOMELAND IN THE HIGH PYRENEES LAST MONTH ANDORRA JOINED THE RANKS OF THE WORLD'S BREAKAWAY REPUBLICS VOTING TO SEVER ITS FEUDAL LINKS WITH FRANCE AND SPAIN THIS COULD BRING BIG THINGS SUCH AS A SEAT AT THE UNITED NATIONS AS THE THIRDSMALLEST MEMBER AND A FOREIGN EMBASSY MAYBE EVEN AN INTERNATIONAL DIALING CODE WE WOULD LIKE TO BE RECOGNIZED LIKE LIECHTENSTEIN MR RIBAS SAYS ANDORRA'S DECLARATION OF INDEPENDENCE ENDS ONE OF THE WORLD'S OLDEST AND MOST OBSCURE SYSTEMS OF GOVERNMENT IN 1278 A SPANISH BISHOP AND A FRENCH COUNT AGREED TO SHARE SOVEREIGNTY OF ANDORRA A LONGDISPUTED PIMPLE OF BORDER LAND LATER THE COPRINCES CEDED SOME CONTROL TO LOCALS THE RESULT IS A MADCAP DIVISION OF POWERS ANDORRA HAS ITS OWN STAMPS BUT NO POSTAL SYSTEM FRENCH AND SPANISH MAILBOXES SIT SIDE BY SIDE IT HAS ITS OWN PASSPORT AND LICENSE PLATE BUT NO CURRENCY FRANCS AND PESETAS ARE USED STUDENTS CHOOSE AMONG SCHOOLS IN FRANCE SPAIN AND ANDORRA WHERE CATALAN IS SPOKEN AND CONVICTS SENTENCED TO MORE THAN SIX MONTHS IN JAIL CAN CHOOSE BETWEEN A FRENCH OR SPANISH PRISON ANDORRA HAS ONLY A SMALL DETENTION CENTER WE KEEP HIRING FOREIGN EXPERTS TO TELL US WHAT WE ARE A PRINCIPALITY A PROTECTORATE A REPUBLIC SAYS JOSEP PLA A GOVERNMENT ADMINISTRATOR EACH TIME WE GET A DIFFERENT ANSWER FOR 700 YEARS NO ONE MUCH CARED ANDORRA'S PEASANTRY SURVIVED BY GROWING AND SMUGGLING TOBACCO STAUNCHLY NEUTRAL WITH NO MILITARY IT WAS SEALED OFF FROM THE WORLD BY MOUNTAINS AND SNOW THEN IN THE 1960S AS THE WEALTH AND TAXES OF ITS NEIGHBORS SOARED ANDORRA BECAME A DUTYFREE GETAWAY SOME 12 MILLION PEOPLE NOW VISIT ANNUALLY MOSTLY TO BUY PERFUME ELECTRONICS AND OTHER GOODS AT SHOPS THAT CLOSE ONLY ON CHRISTMAS AND ON NATIONAL DAY IN SEPTEMBER ANDORRA'S MOUNTAIN AIR LACK OF INCOME TAX AND DISCREET BANKS ALSO HAVE ATTRACTED FOREIGN RETIREES AND TAX EXILES SKI RESORTS HAVE SPROUTED UP ALMOST OVERNIGHT ONE OF EUROPE'S POOREST POCKETS HAS BECOME AMONG ITS RICHEST WITH A PER CAPITA INCOME ABOUT EQUAL TO THE US WE ARE THE KUWAIT OF WESTERN EUROPE SAYS 21YEAROLD EDUARD ROSSELL RELAXING AT ONE OF THE LAVISH GYMS THAT NOW GRACE EACH ANDORRAN VILLAGE METEORIC GROWTH THOUGH HAS SPAWNED BIGLEAGUE WOES SMOG A POPULATION THAT IS THREE QUARTERS FOREIGN AND PRESSURE FROM THE EUROPEAN COMMUNITY WHICH DOESN'T WANT AN UNBRIDLED TAXFREE BAZAAR BLOTTING ITS PLANS FOR A UNIFORM ECONOMY ANDORRA'S ARCHAIC GOVERNMENT SIMPLY COULDN'T COPE WITH THESE DEMANDS AND IT WAS THIS RATHER THAN BUDDING NATIONALISM THAT PROMPTED THE VOTE TO WREST POWER AWAY FROM FRANCE AND SPAIN NOW SIPPING HIS MORNING COFFEE AND COGNAC IN A CAFE RINGED BY SNOWCAPPED PEAKS MR TOR FEARS ANDORRA'S NEW STATE WILL HAVE AN EVEN BIGGER APPETITE THE CENTER OF POWER WILL BE JUST DOWN THE VALLEY INSTEAD OF ON THE OTHER SIDE OF THE MOUNTAINS SAYS THE BERETWEARING FARMER HOW WILL WE HIDE FOREIGNERS SHARE THE SAME WORRIES AT THE WEEKLY MEETING OF A SOCIAL GROUP CALLED THE CLUB INTERNACIONAL D'ANDORRA JOKINGLY CALLED THE CIA TAX EXILES SWAP TALES ABOUT THE OBSCURITY OF THEIR ADOPTED HOME AN AMERICAN SAYS THAT WHEN SHE ARRIVED SEVEN YEARS AGO LETTERS FROM THE US WERE OFTEN RETURNED WITH A NOTICE SAYING ADDRESS UNKNOWN ANONYMITY IS A DIFFICULT AND WONDERFUL THING TO ACHIEVE IN THIS DAY AND AGE SHE SAYS DECLINING TO GIVE HER NAME JOHN GILL A RETIRED ARCHITECT SAYS HIS NATIVE COUNTRY RECENTLY CONTACTED HIM I JUST GOT MY TAX BILL FROM BRITAIN ZERO HE REJOICES I FEEL LIBERATED NOW THOUGH HE AND OTHERS SUSPECT THAT LOOPHOLES WILL CLOSE AS ANDORRA SEARCHES FOR NEW SOURCES OF REVENUE ALREADY SECRET BANK ACCOUNTS ARE A BIT HARDER TO OPEN THIS YEAR TAXES WERE IMPOSED ON ELECTRICITY AND TELEPHONE USE THERE ARE EVEN WHISPERS OF AN INCREASE IN THE FEE FOR REGISTERING A CAR CURRENTLY ABOUT 10 IT WOULD BE A PITY IF THEY RUINED THE PLACE SAYS HENRY FEILBURG A DANISH AIRPORT ENGINEER MONACO IS TOO EXPENSIVE AND SAN MARINO IS TOO SMALL THIS IS ONE OF THE LAST REAL HAVENS LEFT IT IS ALSO ONE OF EUROPE'S LAST OUTPOSTS OF ARCANE CUSTOMS WHICH SOME ANDORRANS FEAR WILL VANISH AS THE NATION MODERNIZES ITS MEDIEVAL WAYS FOR INSTANCE WHEN A DEAD BODY IS FOUND ANDORRAN JUDGES STILL FOLLOW AN ANCIENT CUSTOM ASKING THE CORPSE THREE TIMES WHO KILLED YOU VILLAGERS ALSO RETAIN THE RIGHT TO GATHER FALLEN TIMBER FOR FIREWOOD AND TOBACCOFARMING IS SO PROTECTED THAT CIGARETTE FIRMS IN ANDORRA MUST BUY THE COUNTRY'S ENTIRE CROP 80 OF WHICH THEY THEN BURN BECAUSE OF ITS LOW QUALITY BEFORE IMPORTING FOREIGN LEAF TO BE ANDORRAN IS TO BE DIFFERENT SAYS ANTONI MORELL MORA A LAWYER AND THE NATION'S BESTSELLING NOVELIST WITH LOCAL SALES IN THE HUNDREDS CLAD IN A REDSTRIPED SHIRT AND PAISLEY TIE AND SEATED BESIDE A CRACKED FIGURINE OF NAPOLEON MR MORA SEEMS SAFELY ECCENTRIC BUT HE FEARS FOR HIS COUNTRY WE COULD BECOME JUST ANOTHER BORING LITTLE COUNTRY IN EUROPE HE SAYS WAVING HIS ARMS AND UPSETTING THE MUCHTOPPLED STATUETTE IN SOME WAYS IT IS ALREADY TOO LATE WHILE ANDORRA'S REMOTE GORGES STILL ARE BUCOLIC ITS MAIN VALLEY IS SO GLUTTED WITH NEON AND CONCRETE THAT IT IS HARD TO SEE THE MOUNTAINS FOR ALL THE SIGNS PLUGGING ROLEX SONY AND GIVENCHY FOR FOLKLORIC ENTERTAINMENT ANDORRA'S TOURIST LITERATURE RECOMMENDS CINEMAS CAFES AND SHOPPING WHEN VISITORS SPEAK OF GOING TO THE PYRENEES THEY DON'T MEAN THE MOUNTAINS THEY MEAN A DEPARTMENT STORE OF THE SAME NAME FOREIGNERS JOKE THAT A FITTING NATIONAL SYMBOL FOR THE NEWLY INDEPENDENT LAND WOULD BE A SHOPPING CART NONETHELESS MR RIBAS THE HEAD OF GOVERNMENT SAYS INDEPENDENCE IS THE BEST WAY TO PRESERVE WHAT LITTLE IDENTITY REMAINS HE SAYS THIS IS A PRESSING ISSUE FOR ALL OF EUROPE'S PYGMY NATIONS AND HE HAS HELD TALKS WITH THEIR LEADERS MOST RECENTLY WHEN ANDORRA WAS HOST FOR A MICROSTATE OLYMPICS LAST YEAR WE AGREED THAT WE DON'T WANT TO BE ABSORBED LIKE SUGAR IN TEA INTO A BLAND NEW UNITED STATES OF EUROPE HE SAYS MR RIBAS THOUGH IS NONCOMMITTAL ABOUT TAXES STEERING HIS MERCEDES HOME AFTER WORK HE SIGHS AS HE RECOUNTS THE DEMANDS OF HIS OFFICE NEW SCHOOLS ROADS AND OTHER PROJECTS HAVE SENT ANDORRA'S DEFICIT SOARING TO OVER 50 MILLION I HAVE THE SAME HEADACHE AS BILL CLINTON HE SAYS ONLY WITH A FEW LESS ZEROS 9304270015 930427 TECHNOLOGY MCCAW CELLULAR PLANS AN AUGUST STARTUP FOR NEW DATA SERVICE KIRKLAND WASH MCCAW CELLULAR COMMUNICATIONS INC SAID IT WILL BEGIN OFFERING DATATRANSMISSION CAPABILITY IN AUGUST AND THAT BY THE SECOND QUARTER OF NEXT YEAR IT WILL OFFER THE SERVICE IN MORE THAN 105 US MARKETS MCCAW THE NATION'S LARGEST CELLULARTELEPHONE CARRIER PLANS TO UPGRADE ITS VOICE NETWORK WHICH PRESENTLY HAS ONLY A LIMITED ABILITY TO CARRY COMPUTER DATA AS PART OF THE SHIFT THE COMPANY HAS JOINED WITH OTHER COMPANIES TO ADOPT A COMMON TECHNICAL APPROACH THAT ALLOWS A NETWORK TO BE UPGRADED WITH STANDARD PARTS MCCAW'S INCREASING EMPHASIS ON DATA NETWORKING IS A SIGN OF THE GROWING CONVERGENCE OF COMPUTING AND COMMUNICATIONS BUT SOME ANALYSTS CAUTIONED THAT THE TREND WON'T CHANGE THE MIX IN MCCAW'S REVENUE VERY QUICKLY NOR BY VERY MUCH FOR ONE THING MCCAW FACES COMPETITION FROM OPERATORS OF WIRELESS DATA NETWORKS SUCH AS ARDIS A JOINT VENTURE OF MOTOROLA INC AND INTERNATIONAL BUSINESS MACHINES AND RAM MOBILE DATA NETWORK A VENTURE OF RAM BROADCASTING AND BELLSOUTH ENTERPRISES OTHERS QUESTION THE DEMAND FOR DATA NETWORKING SERVICES THIS IS NOT THE SILVER BULLET THAT WILL ACCELERATE CELLULAR USE BY A PHENOMENAL AMOUNT SAID HERSCHEL SHOSTECK A MARKET RESEARCHER IN SILVER SPRING MD MR SHOSTEK ESTIMATES THAT DATA TRANSMISSION WILL PRODUCE 2 PERCENT OF THIS YEAR'S 10 BILLION IN EXPECTED INDUSTRY REVENUE HE DESCRIBED AS UTTERLY IMPLAUSIBLE A MCCAW FORECAST ISSUED YESTERDAY THAT DATA WILL ACCOUNT FOR 30 PERCENT OF INDUSTRY REVENUE BUT MR SHOSTEK GREATLY UNDERESTIMATED THE POTENTIAL GROWTH OF THE CELLULAR PHONE INDUSTRY IN THE MID1980S ROB MECHALEY THE MCCAW SENIOR VICE PRESIDENT IN CHARGE OF ITS NEW DATA DIVISION DISMISSED THE NEGATIVE FORECASTS SAYING INTEREST IN DATA SERVICES IS VERY STRONG WE'VE BEEN BOMBARDED BY LOTS OF CUSTOMERS WHO SAY THEY WANT THIS MR MECHALEY SAID AT FIRST MCCAW EXPECTS TO TAILOR THE SERVICE TO BUSINESSES WITH NUMEROUS FIELD EMPLOYEES SUCH AS UTILITIES AND DELIVERY COMPANIES FOR INSTANCE UNITED PARCEL SERVICE IS ADAPTING ITS PACKAGEDELIVERY SERVICE TO USE THE TECHNOLOGY AND SEVERAL UTILITIES ARE CONSIDERING ELECTRIC METERS FITTED WITH TRANSMITTERS THAT WOULD SEND REPORTS TO A UTILITY'S MAIN COMPUTERS MR MECHALEY SAID MCCAW WILL FIRST OFFER DATA CAPABILITY IN LAS VEGAS 9304270014 930427 INTERNATIONAL YELTSIN WINS MANDATE BUT FOR WHAT VOTE SHOWS WIDE SUPPORT FOR RUSSIAN PRESIDENT AMBIVALENCE ON POLICIES BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW FOR THE SECOND TIME IN TWO YEARS THE RUSSIAN PEOPLE HAVE RESPONDED DECISIVELY TO SUPPORT DEMOCRACY AND FREEMARKET ECONOMIC REFORMS IN 1991 THEY TOOK TO THE STREETS TO HELP DEFEAT A COUP ATTEMPT BY THE COMMUNIST OLD GUARD SUNDAY THEY AGAIN DID WHAT BORIS YELTSIN ASKED THEY WENT TO THE BALLOT BOXES AND BACKED THE PRESIDENT AND HIS POLICIES BUT WHILE MR YELTSIN WON BIG IN SUNDAY'S NATIONAL REFERENDUM ON HIS LEADERSHIP HE WILL BE HARDPRESSED TO USE THE RESULTS OF THE NONBINDING VOTE TO BOLSTER HIS BELEAGUERED PRESIDENCY THUS RUSSIA'S POLITICAL STALEMATE IS PROBABLY NO CLOSER TO BEING RESOLVED INDEED THINGS COULD WORSEN IF MR YELTSIN TRIES TO GRAB SWEEPING NEW POWERS AND DESPITE THE PUBLIC SUPPORT RESISTANCE IN THE PROVINCES TO MR YELTSIN'S FASTTRACK ECONOMIC REFORMS ISN'T LIKELY TO GO AWAY PRELIMINARY RESULTS AS OF MONDAY SHOW THAT ROUGHLY 60 OF RUSSIA'S VOTERS SAID THEY SUPPORT THE PRESIDENT BUT TALKS WITH MANY OF THEM SUGGEST THAT THE NATION'S ENDORSEMENT WAS HALFHEARTED THE OVERWHELMING MESSAGE WAS THAT THE PEOPLE AREN'T SATISFIED WITH MR YELTSIN'S LEADERSHIP BUT SEE NO VIABLE ALTERNATIVE MORE THAN ANYTHING THE RUSSIAN PEOPLE HAVE VOTED AGAINST PARLIAMENT WHOSE CONSERVATIVE MEMBERS HAVE BLOCKED MR YELTSIN'S ABILITY TO GOVERN EFFECTIVELY BUT THE REFERENDUM'S RESULTS WON'T CHANGE THE MAKEUP OF PARLIAMENT OR TIP THE BALANCE OF POWER NOR WILL IT FORCE NEW ELECTIONS ADDING TO THE MUDDLE IS THE FACT THAT ONLY A BIT MORE THAN 50 OF VOTERS APPROVE OF MR YELTSIN'S ECONOMIC REFORMS SYMPATHIZERS SHOULDN'T BE DELUDED BY THE REFERENDUM'S RESULTS BECAUSE THERE ARE NEITHER WINNERS NOR LOSERS RUSLAN KHASBULATOV MR YELTSIN'S CHIEF RIVAL SAID MONDAY IT HAS SPLIT SOCIETY FURTHER AND WEAKENED THE STATE RUSSIAN VICE PRESIDENT ALEXANDER RUTSKOI A FREQUENT CRITIC OF MR YELTSIN SOUNDED A SIMILAR NOTE THE ILLUSORY MAJORITY HE SAID DOESN'T YET GIVE ANYONE THE RIGHT TO COOK UP NEW LAWS AND MANIPULATE THE POLITICAL SITUATION STILL MR YELTSIN IS ACTING LIKE A MAN ARMED WITH A CLEAR MANDATE ON THE EVE OF THE REFERENDUM HE RELEASED THE TEXT OF A NEW CONSTITUTION HE NOW WILL TRY TO ENACT ONE THAT WOULD GREATLY STRENGTHEN THE ROLE OF THE PRESIDENCY AIDES SAY HE ALSO HAS PREPARED A STACK OF DECREES TO BE ISSUED AS SOON AS HIS VICTORY IS OFFICIAL EITHER LATE THIS WEEK OR EARLY NEXT IF THE RUSSIAN PEOPLE ARE ONLY PARTIAL BELIEVERS IN MR YELTSIN MANY IF NOT MOST OF THE LOCAL OFFICIALS AROUND THE COUNTRY OPENLY OPPOSE MR YELTSIN AND HIS REFORMS NOTHING HAS CHANGED IN THE STRATEGIC SPHERE CONCEDED A YELTSIN AIDE THE GREATEST RISK FOR RUSSIA IS THAT MR YELTSIN WILL OVERSTEP THAT MANDATE AND DECLARE EMERGENCY POWERS THE LIKELY RESULT OF SUCH A GAMBLE WOULD BE FOR MR YELTSIN'S OPPONENTS TO CONVENE AN EMERGENCY SESSION OF THE CONGRESS OF PEOPLE'S DEPUTIES AND TRY AGAIN TO IMPEACH HIM THE REFERENDUM ALSO RAISED HOPES FOR GREATER AUTONOMY IN SEVERAL REGIONS OF RUSSIA A PROCESS THAT IN THE MOST EXTREME CASE COULD BREAK UP RUSSIA ON THE OTHER HAND THE REFERENDUM SHOWED RUSSIA'S ELECTORATE AT ITS BEST LONG DERIDED AS APATHETIC THE RUSSIAN PEOPLE ROSE TO THE OCCASION SUNDAY VOTING PEACEFULLY IN THE ROUGHLY 100000 POLLING STATIONS SPREAD ACROSS RUSSIA'S 11 TIME ZONES OUR PEOPLE ARE NO FOOLS ANDREI KOZYREV MR YELTSIN'S FOREIGN MINISTER SAID AS HE EMERGED FROM A MOSCOW POLLING BOOTH IT'S HARD TO DECEIVE THEM FOREIGN BUSINESS EXECUTIVES ALSO COULD TAKE HEART FROM THE RESULTS FOREIGN INVESTORS VIEW YELTSIN AS A SYMBOL OF WHERE THE COUNTRY'S HEADING SAID ALEXANDER PAPACHRISTOU AN ATTORNEY IN MOSCOW FOR WHITE & CASE A US LAW FIRM THE REFERENDUM SHOULD BOOST THE BELIEF THAT RUSSIA REALLY IS COMMITTED TO ATTRACTING FOREIGN INVESTMENT BUT WHILE THE RUSSIAN PEOPLE ARE FOR MR YELTSIN THEY SEEM LESS CONVINCED ABOUT THE ECONOMIC REFORMS THE PRESIDENT INTRODUCED IN JANUARY 1992 A MAJORITY VOICED SUPPORT FOR THEM BUT THERE IS A GROWING CONSENSUS SHARED EVEN BY MR YELTSIN THAT THE PACE OF REFORM SHOULD BE SLOWED AND ITS PAIN SOFTENED SHOCK ECONOMIC THERAPY WHICH HAS BEEN COMPROMISED ALMOST FROM THE DAY IT WAS INTRODUCED SEEMS UNLIKELY TO BE REVIVED MR YELTSIN HIMSELF ISSUED SEVERAL PORKBARREL DECREES IN THE DAYS BEFORE THE VOTE THAT ARE SURE TO FURTHER STRAIN THE STATE BUDGET AND SPUR INFLATION HE SLASHED GASOLINE PRICES RAISED PENSIONS AND PROMISED TO CUSHION THE BLOW OF UNEMPLOYMENT BY PROMISING THAT LAIDOFF WORKERS WILL BE REHIRED IN NEW STATE JOBS MR YELTSIN'S DESIRE TO MAKE CONCESSIONS TO ANY INTERESTED PARTY WAS EVIDENT DURING A PRECAMPAIGN TRIP TO THE COALMINING REGION OF NOVOKUZNETSK AT A CLOSEDDOOR MEETING OFFICIALS AT THE ABASHEVSKAYA MINE BLASTED THE PRESIDENT'S POLICIES FOR AN HOUR FINALLY MR YELTSIN ADLIBBED A CONCESSIONARY OFFER THAT SURPRISED EVEN HIS CLOSEST AIDES HE ANNOUNCED THAT HE WOULD TURN OVER THE STATE'S 38 SHARE IN THE MINE TO THE WORKERS IT WASN'T CLEAR UNDER WHAT AUTHORITY HE COULD DO SO BUT FOR THE MOMENT MR YELTSIN HAD WON OVER THE CROWD AND AVOIDED A HUMILIATING CONCLUSION TO A ROUGH MEETING FAR MORE WORRISOME HAVE BEEN LOCAL ASSAULTS AGAINST THE MOST CHERISHED OF MR YELTSIN'S REFORMS THE PRIVATIZATION OF STATEOWNED ENTERPRISES MR YELTSIN'S AIM HAS BEEN TO MAKE SUCH REFORMS IRREVERSIBLE BUT SO FAR THE PROCESS HAS HARDLY GOTTEN OFF THE GROUND FOR EXAMPLE IN NOVOSIBIRSK A GRIMY INDUSTRIAL CITY IN WESTERN SIBERIA THE COMMUNISTDOMINATED SUPREME COUNCIL TWO WEEKS AGO SUDDENLY SUSPENDED THE AUCTION OF STATE ENTERPRISES VIA PRIVATIZATION VOUCHERS THOSE VOUCHERS WHICH MR YELTSIN DISTRIBUTED TO EVERY RUSSIAN TO HELP WIN SUPPORT FOR REFORM ENABLE CITIZENS TO BUY SHARES IN NEWLY PRIVATIZED FACTORIES LED BY VITALI MUKHA LOCAL GOVERNOR AND A POWERFUL YELTSIN FOE THE COUNCIL SUSPENDED AUCTIONS UNTIL AT LEAST JULY 1 THE OSTENSIBLE REASON FOR THE MOVE WAS A CONCERN THAT OUTSIDERS WERE BUYING UP THE BULK OF SHARES IN NOVOSIBIRSK'S ENTERPRISES BUT TO THE PROREFORM LOBBY IN NOVOSIBIRSK THIS WAS A TRANSPARENT ATTEMPT TO BLOCK A PROCESS THAT WAS SAPPING THE POWER OF THE OLD GUARD REACTIONARY POLITICAL FORCES ARE WAGING A POWERFUL COUNTERATTACK AND THEY HAVE DECIDED THEIR TIME HAS COME SAID ANATOLI MANOKHIN MR YELTSIN'S OFFICIAL REPRESENTATIVE IN THE CITY WHO FEARS THE LOCAL COUNCIL MAY TRY TO MAKE THE BAN PERMANENT IT'S A MAJOR SETBACK FOR ECONOMIC REFORM IN BASHKORTOSTAN AN OILRICH SEMIAUTONOMOUS REPUBLIC 600 MILES EAST OF MOSCOW THE RUMBLINGS OF SECESSION GREW A BIT LOUDER OVER THE WEEKEND HAVING LOBBIED AGAINST THE REFERENDUM WHICH THEY VIEWED AS POTENTIALLY DESTABILIZING THE REPUBLIC'S LEADERS DECIDED TO USE THE VOTE FOR THEIR OWN PURPOSES FED UP WITH POLITICAL POWER GAMES IN MOSCOW THEY ADDED A FIFTH QUESTION WHICH ASKED THE REPUBLIC'S FOUR MILLION PEOPLE IF THEY WANTED ECONOMIC INDEPENDENCE FROM MOSCOW AND THEY CAMPAIGNED HARD FOR IT ACCORDING TO PRELIMINARY RESULTS 75 OF THE REPUBLIC'S VOTERS SAID THEY WANTED ECONOMIC SEPARATISM IF THE CENTER WON'T DEAL WITH OUR PROBLEMS WE WILL SAID MURTAZA RACHIMOV A FORMER OIL REFINERY DIRECTOR WHO HEADS BASHKORTOSTAN'S SUPREME SOVIET ALREADY THE REPUBLIC ROUTINELY TAKES MR YELTSIN'S DECREES AND ADAPTS THEM TO ITS LIKING PRIVATIZATION PLANS WERE SLOWED DOWN FOR EXAMPLE AND PRICE CONTROLS LIFTED ELSEWHERE REMAIN IN FORCE IN THE REPUBLIC EAGER TO PLEASE THE INDEPENDENCEMINDED REPUBLIC MOSCOW ALLOWS BASHKORTOSTAN TO EXPORT 19 OF ITS OIL AND 155 OF ITS OIL PRODUCTS PERCENTAGES TWICE WHAT OTHER REGIONS ARE PERMITTED BUT LOCAL OFFICIALS SAY IT ISN'T ENOUGH WHETHER OR NOT WE DEMAND POLITICAL INDEPENDENCE DEPENDS ON WHETHER YELTSIN CAN SOLVE OUR PROBLEMS SAID RAFIL GARIFULLIN IN CHARGE OF FOREIGN TRADE FOR THE REGION HE RECENTLY ASSUMED THE TITLE OF FOREIGN TRADE MINISTER A SIGN OF THE REPUBLIC'S GROWING SENSE OF SOVEREIGNTY IN ADDITION TO A FULLFLEDGED GOVERNMENT BASHKORTOSTAN HAS ITS OWN FLAG AND ANTHEM IF THERE IS A BREAKUP MR GARIFULLIN SAYS WE COULD SURVIVE 9304270013 930427 NOMINEE TO OVERSEE ATF GETS FEW WACO QUESTIONS WASHINGTON THE NOMINEE TO OVERSEE THE BUREAU OF ALCOHOL TOBACCO AND FIREARMS BREEZED THROUGH HIS CONFIRMATION HEARING WITH ONLY A FEW QUESTIONS ABOUT THE BUREAU'S ROLE IN THE BRANCH DAVIDIANS DISASTER NEAR WACO TEXAS RONALD K NOBLE A FORMER FEDERAL PROSECUTOR WHO TEACHES LAW AT NEW YORK UNIVERSITY EXPECTED THE SENATE FINANCE COMMITTEE TO GRILL HIM DURING HIS HEARING TO BECOME THE TREASURY DEPARTMENT'S ASSISTANT SECRETARY FOR ENFORCEMENT BUT SENS DANIEL PATRICK MOYNIHAN AND CHARLES GRASSLEY THE ONLY TWO COMMITTEE MEMBERS TO ATTEND YESTERDAY'S HEARING SPRINKLED ONLY A FEW QUESTIONS ABOUT THE ATF AMONG OTHERS CONCERNING TERRORISTS' ASSETS TARIFFS ON FOREIGNMADE MINIVANS AND THE PRICE OF LICENSES TO MANUFACTURE AMMUNITION SEN MOYNIHAN PREDICTED THAT THE COMMITTEE WOULD APPROVE MR NOBLE'S NOMINATION TODAY AND THAT HE WOULD BE CONFIRMED BY THE FULL SENATE SOON FOLLOWING CONFIRMATION MR NOBLE SAID HE WOULD BE NAMED BY TREASURY SECRETARY LLOYD BENTSEN TO LEAD THE DEPARTMENT'S INVESTIGATION OF ATF'S PERFORMANCE IN TEXAS 9304270012 930427 WHAT'S NEWS WORLDWIDE YELTSIN CLAIMED A CLEAR MANDATE BUT OPPONENTS DIDN'T ACCEPT DEFEAT A NEW ROUND IN RUSSIA'S POWER STRUGGLE BEGAN AS THE PRESIDENT'S TEAM CLAIMED MASSIVE SUPPORT FROM SUNDAY'S REFERENDUM WHILE HIS OPPONENTS SAID THE VOTE SPLIT THE COUNTRY PRELIMINARY RESULTS SHOWED THAT A MAJORITY OF VOTERS SAID THEY TRUSTED YELTSIN AND ENDORSED HIS FREEMARKET REFORMS BUT HARDLINERS POINTED TO THE FACT THAT ONLY SLIGHTLY OVER ONETHIRD OF ELIGIBLE VOTERS ACTUALLY EXPRESSED CONFIDENCE IN YELTSIN WITH THE REST VOTING AGAINST HIM OR STAYING HOME PRESIDENT CLINTON WHO CONGRATULATED YELTSIN OVER THE PHONE SAID THE OUTCOME COULD HELP WIN APPROVAL IN CONGRESS OF A US AID PACKAGE FOR RUSSIA TOUGH UN SANCTIONS WERE SET TO GO INTO EFFECT TODAY AGAINST SERBLED YUGOSLAVIA AFTER THE BOSNIAN SERBS' AD HOC ASSEMBLY REJECTED A UN PEACE PLAN 770 THE VOTE CAME DESPITE AN APPEAL FROM SERBIAN PRESIDENT MILOSEVIC WHO URGED ACCEPTANCE IN WASHINGTON CLINTON SIGNED AN ORDER TIGHTENING US SANCTIONS AGAINST YUGOSLAVIA CLINTON TOLD REPORTERS HE WOULD SEEK SUPPORT FROM CONGRESS FOR A STRONGER POLICY TO END THE WAR IN BOSNIA THE TIME HAS COME TO FOCUS ON THAT PROBLEM THE PRESIDENT SAID ADDING THAT HE WOULD BE CONDUCTING SERIOUS CONSULTATIONS WITH LAWMAKERS AND OTHERS THIS WEEK BRANCH DAVIDIAN CULT MEMBERS STARTED THE QUICKLY SPREADING FIRE THAT DESTROYED THEIR COMPOUND IN WACO TEXAS A WEEK AGO KILLING 86 PEOPLE INDEPENDENT ARSON INVESTIGATORS SAID THE FINDINGS CORROBORATED FBI CLAIMS THAT CULT MEMBERS SET THE FIRE SOME OF THE NINE SURVIVORS SAID THE FIRE BEGAN WHEN AN FBI TANK KNOCKED OVER A LANTERN ITALY'S CENTRAL BANK CHIEF WAS CHOSEN TO BE THE COUNTRY'S NEXT PRIME MINISTER CARLO AZEGLIO CIAMPI 72 GOVERNOR OF THE BANK OF ITALY FOR THE PAST 14 YEARS HAS NO POLITICAL PARTY AFFILIATION THE CENTRAL BANK HAS BEEN ONE OF THE FEW ITALIAN INSTITUTIONS TO EMERGE UNTAINTED BY RECENT CORRUPTION SCANDALS LONDON POLICE ANNOUNCED THAT THEY HAD MADE A NUMBER OF ARRESTS IN CONNECTION WITH SATURDAY'S MASSIVE BOMB BLAST THAT KILLED ONE MAN AND INJURED DOZENS OF OTHERS IN THE CITY'S FINANCIAL DISTRICT DESPITE WIDESPREAD DAMAGE TO BUILDINGS MORE THAN 90 OF THE AREA'S FINANCE HOUSES WERE ABLE TO FUNCTION NORMALLY YESTERDAY PALESTINIAN DEPORTEES MARCHED ON AN ISRAELI ARMY OUTPOST IN SOUTH LEBANON AND BEGAN A SITIN TO PROTEST THE RESUMPTION OF MIDEAST PEACE TALKS THE NEARLY 400 EXILES WALKED 1 1/2 MILES FROM THEIR TENT CAMP TO THE CHECKPOINT ONE DEPORTEE SAID ARABS AND PALESTINIANS SHOULD BOYCOTT THE TALKS UNTIL ISRAEL ALLOWS THE DEPORTEES TO RETURN MEDICAL RESEARCHERS ARE TESTING AN OLD DRUG AS A POSSIBLE NEW ONCEAYEAR TREATMENT FOR GLAUCOMA A COMMON CAUSE OF BLINDNESS MEANWHILE ANOTHER TEAM OF SCIENTISTS SAID THEY FOUND A GENE THAT CAUSES GLAUCOMA POSSIBLY THE FIRST OF SEVERAL GENES UNDERLYING THE EYE DISORDER THAT DESTROYS PERIPHERAL VISION SPACE SHUTTLE COLUMBIA BLASTED OFF FROM CAPE CANAVERAL FLA WITH FIVE US ASTRONAUTS AND TWO GERMAN SCIENTISTS ON A NINEDAY SCIENCE MISSION IT WAS THE THIRD LAUNCH ATTEMPT IN FIVE WEEKS FOR THE GERMANCHARTERED MISSION WHICH HAD BEEN PLAGUED BY TECHNICAL PROBLEMS THE CREW WILL CONDUCT 88 EXPERIMENTS IN A SPACELAB MODULE AN OHIO DEMOCRATIC CONGRESSMAN ENDED A 22DAY FAST DECLARING THAT HE HAD REFOCUSED THE ATTENTION OF THE GOVERNMENT AND THE NATION ON HUNGER REP TONY HALL ABANDONED HIS WATERONLY FAST AFTER THE AGRICULTURE DEPARTMENT SAID IT WOULD HOLD A NATIONAL CONFERENCE AND A SERIES OF REGIONAL FORUMS ON THE ISSUE NO DATES WERE SET A UN RELIEF PLANE CAME UNDER FIRE IN EASTERN ANGOLA AND WAS FORCED TO MAKE AN EMERGENCY LANDING A UN OFFICIAL SAID TWO OF THE SEVEN CREW MEMBERS WERE INJURED A PORTUGUESE NEWS AGENCY QUOTED ANGOLAN AUTHORITIES WHO SAID THE UN PLANE WAS HIT BY A MISSILE APPARENTLY FIRED BY UNITA REBEL FORCES SOON AFTER TAKEOFF 9304270011 930427 OTC FOCUS INDEXES DECLINE ON WEAKNESS IN INTEL DROP IN BANKS INSURANCES FINANCIALS BY CAITLIN MOLLISON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRECIPITOUS DECLINES IN THE BANK INSURANCE AND FINANCIAL SECTORS AS WELL AS A SHARP DROP IN INTEL'S STOCK PRICE COMBINED TO PUMMEL THE OVERTHECOUNTER MARKET THE NASDAQ COMPOSITE INDEX TOPPLED 1254 POINTS OR 19 TO 64587 FRACTIONALLY OFF ITS LOW FOR THE SESSION YESTERDAY MARKED THE FIRST TIME SINCE DEC 16 1992 THAT THE INDEX HAD FINISHED BELOW 650 MEANWHILE THE NASDAQ BANK OTHER FINANCE AND INSURANCE INDEXES FELL 3 29 AND 22 RESPECTIVELY MARKET OBSERVERS SAID A NEGATIVE ARTICLE ON BANK STOCKS IN BARRON'S HELPED DRAG PRICES DOWN THE STORY INDICATES THE SECTOR MIGHT BE TOPPING OUT AFTER A LONG STRONG RUN INTEL PLUNGED 5 1/4 OR 57 TO 87 3/8 ON VOLUME OF MORE THAN 11 MILLION SHARES COMPARED WITH AVERAGE DAILY VOLUME OF 38 MILLION THE COMPANY WAS PLAGUED BY MORE BAD NEWS AS NEW YORK STOCK EXCHANGELISTED MOTOROLA SAID IT WAS SHIPPING SAMPLES OF ITS POWERPC MICROPROCESSOR A CHALLENGE TO INTEL'S DOMINANCE IN DESKTOP COMPUTERS TRADING HOWEVER WAS FAIRLY TAME WITH TOTAL NASDAQ NATIONAL MARKET SYSTEM VOLUME AT JUST 179240000 SHARES COMPARED WITH 192940000 ON FRIDAY BIG BOARD TRADING WAS ROCKY THROUGHOUT ALTHOUGH THE DOW JONES INDUSTRIAL AVERAGE WAS HIGHER IN THE MORNING BUT THE INDUSTRIALS SPENT THE AFTERNOON DECLINING AND FINISHED 1540 POINTS OR 045 LOWER AT 339837 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX GAVE UP 194 POINTS OR 080 TO END AT 23991 THE FINANCIAL GROUP IS STILL UNDER GREAT PRESSURE SAID PATRICK DAVIS MANAGER OF OTC TRADING AT SALOMON BROTHERS THE BARRON'S ARTICLE PUT MORE PRESSURE ON AN ALREADYBEATENUP SITUATION THE BANK AND FINANCIAL SECTORS WHICH HAD HELPED PROP UP OTC PRICES FOR MONTHS HAVE SLIPPED FROM THEIR PEDESTALS IN THE PAST WEEK AND A HALF MR DAVIS SAID INVESTORS MIGHT GO BOTTOMFISHING IN THE NEXT FEW SESSIONS AND HE ADDED THAT HE WOULDN'T BE VERY SURPRISED TO SEE A TECHNICAL BOUNCE SOON FOR NOW THOUGH STEVEN GOLDMAN A MARKET STRATEGIST AT WEEDEN & CO SAID THE POOR PERFORMANCE AMONG BANK AND FINANCIAL ISSUES IS SPREADING TO OTHER SECTORS HE ADDED THAT CYCLICAL ISSUES FOUND MORE ON THE LARGER EXCHANGES HAVE PERFORMED WELL THE OTC MARKET HAS BEEN WEAKENING SINCE FEBRUARY AND WHAT WE'VE SEEN IS ONCE THE CYCLICALS START TO ACT WELL THE OTC MARKET STARTS TO LAG DROPS IN BOND PRICES AND THE US DOLLAR ALSO WEIGHED HEAVILY ON INVESTORS' MINDS THE TREASURY'S 30YEAR BOND FELL NEARLY 1/2 POINT SENDING ITS YIELD TO ABOUT 683 THE DOLLAR MEANWHILE FELL AGAINST THE GERMAN MARK ADDITIONALLY MORE OMINOUS NEWS ABOUT THE ECONOMY EMERGED WHEN THE NATIONAL ASSOCIATION OF REALTORS SAID YESTERDAY MORNING THAT SALES OF PREVIOUSLY OWNED HOMES FELL FOR THE THIRD STRAIGHT MONTH IN MARCH DROPPING 29 THE DECLINE WAS ATTRIBUTED TO THE BLIZZARD IN MIDMONTH AND FLOODS IN THE EAST AMONG INDIVIDUAL ISSUES BOATMEN'S BANCSHARES WAS DOWN 2 AT 56 1/2 THE ST LOUISBASED CONCERN SAID IT ACQUIRED TWO FAILED KANSAS CITY MO BANKS INSURANCE COMPANY SAFECO SLIPPED 3 3/4 TO 60 1/4 AFTER REPORTING DISAPPOINTING FIRSTQUARTER EARNINGS THE COMPANY POSTED OPERATING NET OF 88 CENTS A SHARE COMPARED WITH 125 A YEAR EARLIER MANY OF THE ISSUES IN THE BANK FINANCIAL AND INSURANCE SECTORS LOST MORE THAN 2 POINTS BUT HAD NO CORPORATE DEVELOPMENTS TO EXPLAIN THE DROPS THESE INCLUDED BAYBANKS CRESTAR FINANCIAL FIFTH THIRD BANCORP FIRST TENNESSEE HUNTINGTON BANCSHARES MICHIGAN NATIONAL NATIONAL COMMUNITY BANKS AND SOUTHTRUST MARSHALL & ILSLEY LOST 4 POINTS TO 68 3/4 EQUITABLE OF IOWA MANAGED TO GAIN 1 1/2 TO 54 1/2 THANKS TO BETTERTHANEXPECTED FIRSTQUARTER RESULTS THE INSURANCE FIRM REPORTED NET INCOME FROM CONTINUING OPERATIONS OF 140 A SHARE COMPARED WITH 82 CENTS A YEAR AGO EQUITABLE'S REVENUE EXCEEDED EXPECTATIONS NOVELL FELL 1 5/8 TO 29 1/8 ON HEAVY VOLUME DESTINY TECHNOLOGY SAID THAT IT HAS BEEN UNABLE TO SETTLE OUT OF COURT WITH NOVELL WITH REGARD TO DESTINY'S SUIT CHARGING TRADEMARK INFRINGEMENT DECEPTIVE TRADE PRACTICES AND UNFAIR COMPETITION TSENG LABS PLUNGED 2 7/8 TO 16 1/2 THE COMPANY POSTED FIRSTQUARTER EARNINGS OF 22 CENTS A SHARE ABOVE THE 20 CENTS REPORTED A YEAR EARLIER BUT ON SLUGGISH REVENUE GROWTH THE COMPANY MAKES AND SELLS HARDWARE AND SOFTWARE PERIPHERAL ENHANCEMENT PACKAGES AND CUSTOMDESIGNED INTEGRATED CIRCUITS FOR PCS VIDEO LOTTERY TECHNOLOGIES RELINQUISHED 2 TO 11 1/2 THE FORMER DIRECTOR OF THE WEST VIRGINIA STATE LOTTERY WAS INDICTED LATE FRIDAY ON FRAUD CHARGES ALLEGING HE TRIED TO RIG LOTTERY BIDDING IN THE STATE SO VIDEO LOTTERY IN WHICH HE OWNED STOCK WOULD WIN US HEALTHCARE STOOD OUT AS ONE OF THE DAY'S BIG WINNERS THE HEALTH MAINTENANCE ORGANIZATION OPERATOR ROSE 2 1/2 TO 43 3/4 IN ACTIVE TRADING AFTER REPORTING FIRSTQUARTER EARNINGS OF 58 CENTS A SHARE COMPARED WITH 42 CENTS A YEAR EARLIER ANALYSTS HAD LOOKED FOR THE COMPANY TO EARN 53 CENTS 9304270010 930427 FINANCING BUSINESS GENERAL SIGNAL CORP GENERAL SIGNAL CORP STAMFORD CONN SAID ITS ELECTROGLAS INC UNIT FILED FOR AN INITIAL PUBLIC OFFERING OF 62 MILLION COMMON SHARES IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THE COMPANY SAID IT EXPECTS THE ISSUE TO BE PRICED AT BETWEEN 13 AND 15 A SHARE OF THE SHARES 496 MILLION ARE BEING OFFERED IN THE US AND THE REMAINING IN INTERNATIONAL MARKETS GENERAL SIGNAL WHICH IS SELLING ALL OF THE SHARES WILL HOLD ABOUT 88 OF ELECTROGLAS FOLLOWING THE OFFERING ELECTROGLAS BASED IN SANTA CLARA CALIF MAKES EQUIPMENT FOR SEMICONDUCTOR DEVICES AND HAD 1992 SALES OF ABOUT 55 MILLION ELECTROGLAS WILL HAVE 68 MILLION SHARES OUTSTANDING AND THERE IS AN OVERALLOTMENT OPTION FOR 600000 COMMON SHARES GENERAL SIGNAL SAID UNDERWRITERS FOR THE OFFERING ARE LEHMAN BROTHERS BEAR STEARNS & CO AND NEEDHAM & CO 9304270009 930427 FINANCING BUSINESS SOUTHWESTERN PROPERTY TRUST INC SOUTHWESTERN PROPERTY TRUST INC DALLAS SAID IT HAD REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION TO INCREASE A PROPOSED OFFERING OF COMMON STOCK TO NINE MILLION SHARES ON MARCH 16 THE REAL ESTATE INVESTMENT TRUST ANNOUNCED THAT IT HAD REGISTERED FOR AN OFFERING OF FOUR MILLION SHARES THE COMPANY SAID THAT THE PROCEEDS WOULD BE USED TO ACQUIRE PROPERTIES THE OFFERING WILL BE MANAGED BY NATWEST SECURITIES LTD KEMPER SECURITIES INC AND MCDONALD & CO SECURITIES INC 9304270008 930427 TRAVEL FREQUENT FLIERS AREN'T FLOCKING TO EUROPEAN PROGRAMS BY JONATHAN DAHL STAFF REPORTER OF THE WALL STREET JOURNAL AFTER YEARS OF GRUMBLING ABOUT FREQUENTFLIER PLANS AT HOME AMERICAN TRAVELERS HAVE FOUND LITTLE RELIEF IN A SERIES OF NEW PROGRAMS ABROAD ABOUT A DOZEN EUROPEAN CARRIERS STARTED OR REVAMPED PLANS LAST YEAR HOPING TO ATTRACT AT LEAST SOME OF THE 20 MILLION AMERICANS WHO FLY ABROAD EACH YEAR BUT ANALYSTS SAY THE FOREIGN PROGRAMS HAVE MANY OF THE SAME RESTRICTIONS AS US PLANS OR ARE EVEN LESS ATTRACTIVE SO FAR ONLY 600000 US TRAVELERS HAVE ENROLLED IN THE EUROPEAN PROGRAMS THE PLANS APPARENTLY HAVEN'T OVERWHELMED CITIZENS IN THE CARRIERS' HOME MARKETS EITHER TOTAL MEMBERSHIP IN ALL EUROPEAN PLANS IS ESTIMATED AT LESS THAN TWO MILLION BY COMPARISON 30 MILLION TRAVELERS ARE ENROLLED IN US FREQUENTFLIER PROGRAMS THE FOREIGN PLANS AREN'T UP TO SCRATCH WITH THE AMERICAN PLANS SAYS MICHAEL ASHINGTONPICKETT EDITOR OF AN ORLANDO FLA TRAVEL NEWSLETTER BEARING HIS NAME THEY'RE JUST NOT AS GENEROUS TO BE SURE NOBODY EXPECTED MILLIONS AND MILLIONS OF AMERICANS TO SUDDENLY SWITCH TO THE FOREIGN PLANS SINCE MOST US RESIDENTS FLY DOMESTICALLY AND ALREADY HAVE MILES EARNED IN DOMESTIC PROGRAMS A FEW EUROPEAN AIRLINES AREN'T EVEN MARKETING THEIR PLANS TO AMERICANS AND MOST EUROPEAN CARRIERS HAVE CONTINUED THEIR OLD PARTNERSHIPS WITH US FREQUENTFLIER PLANS THESE ALLIANCES ALLOW MEMBERS OF US PLANS TO EARN MILES AND WIN TRIPS BY FLYING BOTH THEIR US CARRIER AND THE EUROPEAN PARTNER BUT THERE WAS REASON TO EXPECT MANY US TRAVELERS WOULD WELCOME A EUROPEAN ALTERNATIVE MANY FLIERS HAVE BEEN UNHAPPY WITH RESTRICTIONS IMPOSED BY US CARRIERS AND PREVIOUSLY THEY COULD TURN ONLY TO A HANDFUL OF ASIAN AIRLINES IN ADDITION AMERICAN TRAVELERS HAVE SAID IN SURVEYS OR TOLD TRAVEL AGENTS THAT THEY PREFER EUROPEAN TO US CARRIERS FOR SERVICE AND WOULD FLY THE EUROPEAN AIRLINES MORE IF THEY HAD FREQUENTFLIER PLANS BUT THE EUROPEAN PLANS HAVE MANY OF THE SAME FEATURES THAT TRAVELERS DISLIKE IN THE US PROGRAMS FOR EXAMPLE MOST EUROPEAN CARRIERS SET ASIDE ONLY A LIMITED NUMBER OF SEATS FOR AWARD WINNERS A PRACTICE THAT CAN MAKE MANY AWARDS VIRTUALLY UNUSABLE FOR PEOPLE WITH TIGHT SCHEDULES SOME FOREIGN CARRIERS ALSO REQUIRE MUCH MORE MILEAGE FOR AWARDS TO BE REDEEMED IN SUMMER WHEN MOST PEOPLE TAKE VACATIONS THAN AT OTHER TIMES MOREOVER MILEAGE REQUIREMENTS ARE MUCH HIGHER IN SOME OF THE NEW PLANS THAN IN US CARRIERS' PROGRAMS TO EARN A FREE ROUNDTRIP COACH TICKET BETWEEN THE US AND EUROPE SWISSAIR REQUIRES A FLIER TO ACCUMULATE 90000 MILES SCANDINAVIAN AIRLINES SYSTEM 65000 MILES MOST US CARRIERS REQUIRE 35000 TO 50000 MILES SWISSAIR SAYS ITS PROGRAM PERMITS TRAVELERS TO MAKE SEVERAL STOPOVERS IN THE US BUT EVEN SWISSAIR SAYS FEW TRAVELERS TAKE ADVANTAGE OF THAT AN SAS SPOKESWOMAN SAYS THE CARRIER MAY CHANGE ITS AWARD STRUCTURE SOON WE'RE THINKING ABOUT IT RIGHT NOW SHE SAYS THERE ARE OTHER PROBLEMS MOST US PLANS AUTOMATICALLY RECORD MILEAGE FOR FREQUENT FLIERS BUT FINNAIR'S MEMBERS HAVE TO PUT SPECIAL STICKERS ON THEIR TICKETS TO GET CREDIT IT'S CUMBERSOME SAYS A FINNAIR SPOKESWOMAN MEMBERS OF SABENA WORLD AIRLINES' PLAN MEANWHILE EARN AWARDS BASED ON HOW MANY GEOGRAPHICAL ZONES THEY FLY THROUGH NOT MILES FLOWN AN EXPLANATION OF THE PROGRAM RUNS FOR ALMOST A DOZEN PAGES OF SMALL PRINT SABENA OFFICIALS SAY PRIVATELY THEY HAVE BEEN STRUGGLING WITH HOW TO MARKET THEIR PROGRAM BECAUSE IT'S SO COMPLICATED THE ONLY CURRENCY PEOPLE UNDERSTAND WITH FREQUENTFLIER PROGRAMS IS MILES SAYS RANDY PETERSEN EDITOR OF INSIDEFLYER MAGAZINE IN COLORADO SPRINGS COLO NOTHING ELSE HAS EVER WORKED THE EUROPEANS STILL HAVE TIME TO TURN THINGS AROUND MR PETERSEN SAYS BRITISH AIRWAYS' PLAN THE LARGEST OUTSIDE THE US HAS THE GREATEST GROWTH POTENTIAL BECAUSE IT OFFERS SMALL BUT CHERISHED PERKS TO BOTH NEW AND LONGTERM MEMBERS BY JUST ENROLLING FOR EXAMPLE FREQUENT FLIERS GET SOME HOTEL AND CARRENTAL DISCOUNTS THE AIRLINE ALSO PLANS TO EXPAND ITS PROGRAM SOON BY LINKING MORE AWARDS AND OPPORTUNITIES TO EARN THEM WITH ITS US PARTNER USAIR GROUP OTHER FOREIGN CARRIERS HOPE TO RAISE ENROLLMENT IN PART BY OFFERING NEW KINDS OF AWARDS FOR 50000 MILES SWISSAIR MEMBERS CAN EARN A WINETASTING EXCURSION THAT INCLUDES TWO NIGHTS AT A FRENCH CASTLE MEMBERS OF SABENA'S PLAN CAN ULTIMATELY EARN A CARATSIZED DIAMOND AND FOR 35000 MILES VIRGIN ATLANTIC AIRWAYS MEMBERS CAN GET A DAY OF POLO LESSONS AT A CLUB IN ASCOT ENGLAND 30000 MILES CAN EARN A DAY AT CLARIN'S BEAUTY SPA IN LONDON BUT IN THEIR QUEST TO EXPAND AND ATTRACT US INTEREST MANY EUROPEAN AIRLINES ARE LIMITED BY GOVERNMENT REGULATION SAS SAYS SOME SCANDINAVIAN COUNTRIES STRICTLY CONTROL THE GIVING OF GIFTS BY AIRLINES AND OTHER BUSINESSES IT'S A DEFINITE OBSTACLE FOR US SAYS MARIE WIKSTROM AN SAS MANAGER WHO HELPS RUN THE AIRLINE'S FREQUENTFLIER PLAN SOME EUROPEAN AIRLINES SAY THEY AREN'T INTERESTED IN RAISING ENROLLMENT SUBSTANTIALLY THEY SAY THEY WANT ONLY LOYAL CUSTOMERS AND BUSINESS TRAVELERS TO JOIN THOUGH ENROLLMENT FORMS ARE AVAILABLE TO ANYONE AT MOST AIRLINES WE'RE NOT INTERESTED IN NAME GATHERING SAYS CHARLES MCKEE MANAGER OF MARKETING PROGRAMS FOR VIRGIN ATLANTIC 9304270007 930427 AT&T STRIKES PACT TO SUPPLY SWITCHES TO NIPPON TELEGRAPH NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO SAID IT REACHED ITS FIRST MAJOR CONTRACT WITH JAPAN'S NIPPON TELEGRAPH & TELEPHONE CORP SUPPLYING ADVANCED DIGITAL SWITCHING EQUIPMENT FOR OPERATOR SERVICES THE CONTRACT MARKS THE FIRST SALE TO NTT OF ITS PREMIER SWITCH THE 5ESSR2000 SAID AT&T IT ALSO MEANS THAT AT&T'S COMPETITOR IN DIGITAL SWITCHES NORTHERN TELECOM INC NO LONGER ENJOYS THE STATUS OF THE ONLY FOREIGN SUPPLIER OF SWITCHES TO NTT AT&T'S CONTRACT ALSO CALLS FOR IT TO SELL REMOTE SWITCHING EQUIPMENT AND SPECIALIZED SOFTWARE TO NTT ALTHOUGH SPECIFIC TERMS WEREN'T DISCLOSED AT&T'S VICE CHAIRMAN RANDALL L TOBIAS SAID IT IS VALUED IN THE TENS OF MILLIONS OF DOLLARS THE POWERFUL COMPUTER SWITCH WHICH AUTOMATES MANY OF A TELEPHONE COMPANY'S FUNCTIONS IS THE HEART OF OUR TECHNOLOGY SAID MR TOBIAS OUR EXPECTATION IS THAT ONCE NTT HAS THE EXPERIENCE WITH OUR TECHNOLOGY THAT WE WILL HAVE OTHER OPPORTUNITIES TO SELL TO THE JAPANESE GIANT WITH 568 MILLION DOMESTIC CUSTOMERS NTT IS THE WORLD'S LARGEST PROVIDER OF LOCAL TELECOMMUNICATIONS SERVICES MR TOBIAS SAID AT&T HAS BEEN SELLING OTHER PRODUCTS AND SERVICES TO NTT BUT ON A MUCH SMALLER SCALE HE DECLINED TO SAY WHETHER THE CONTRACT WAS THE RESULT OF COMPETITIVE BIDDING AGAINST NORTHERN TELECOM OR OTHER SWITCH MAKERS BUT SAID COMPETITION IS A FAIR ASSUMPTION GIVEN THAT ANYTHING IN THIS BUSINESS IS DONE IN A COMPETITIVE ENVIRONMENT A SPOKESMAN FOR NORTHERN TELECOM IN TORONTO SAID WE'RE HAPPY WITH THE BUSINESS WE HAVE WITH NTT NOTING THAT THE COMPANY RECEIVED A 270 MILLION CONTRACT EARLIER THIS YEAR FROM NTT FOR SWITCHING SYSTEMS 9304270006 930427 MARKETING & MEDIA EZ BUY & EZ SELL RECYCLER LOS ANGELES EZ BUY & EZ SELL RECYCLER CORP THE CLOSELY HELD OWNER OF WEEKLY PUBLICATIONS THE RECYCLER AND PHOTO BUYS SAID IT SOLD A 67 STAKE TO DLJ MERCHANT BANKING PARTNERS LP A LIMITED PARTNERSHIP MANAGED BY A UNIT OF DONALDSON LUFKIN & JENRETTE INC TERMS WEREN'T DISCLOSED BUT INDUSTRY OBSERVERS ESTIMATED REVENUE AT THE TWO PUBLICATIONS AT MORE THAN 20 MILLION THE RECYCLER CLAIMS WEEKLY CIRCULATION OF ABOUT 190000 AT 135 A COPY SELLERS OF CARS REFRIGERATORS COMPUTERS AND OTHER ITEMS PLACE FREE CLASSIFIED ADVERTISEMENTS IN THE PUBLICATION BUT THE RECYCLER ALSO RUNS SOME PAID ADS PHOTO BUYS CLAIMS CIRCULATION OF 17300 9304270005 930414 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 STRUCTURAL DYNAMICS RESEARCH CORP'S FIRSTQUARTER EARNINGS OF 10 CENTS A SHARE WERE IN LINE WITH THE AVERAGE OF THREE ANALYSTS' ESTIMATES BECAUSE OF AN INCORRECT ESTIMATE SUBMITTED TO ZACKS INVESTMENT RESEARCH STRUCTURAL DYNAMICS RESEARCH WAS INCORRECTLY SHOWN AS A NEGATIVE SURPRISE IN THE QUARTERLY EARNINGS SURPRISES TABLE THAT APPEARED IN EARLIER EDITIONS 9304270004 930427 ON THE RIGHT THOMAS IS EMERGING AS STRONG CONSERVATIVE OUT TO PROVE HIMSELF HE OFTEN WRITES SEPARATELY EVEN WHEN IN MAJORITY SIDES WITH SCALIA A LOT THE ANGER IS STILL EVIDENT BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CLARENCE THOMAS TELLS FRIENDS THAT HE INTENDS TO SERVE ON THE SUPREME COURT FOR 43 YEARS WHY 43 EXACTLY BECAUSE HE FIGURES THAT'S HOW OLD HE WAS WHEN HE SURVIVED HIS CONFIRMATIONHEARING STORM OVER ANITA HILL'S SEXHARASSMENT CHARGES IN 1991 THE WORLD STUCK IT TO HIM FOR 43 YEARS NOW IT'S PAYBACK TIME AS HIS EDGY HUMOR SUGGESTS JUSTICE THOMAS'S ANGER DIDN'T BEGIN WITH MS HILL'S ALLEGATIONS IT WAS KINDLED IN A SEGREGATIONMARRED BOYHOOD AND SMOLDERED FOR YEARS AS HE ENCOUNTERED ACCUSATIONS THAT AS A BLACK CONSERVATIVE HE WAS NECESSARILY A HYPOCRITE NOW HE IS SETTLING IN AFTER 18 MONTHS AT THE SUPREME COURT CARVING OUT A ROLE AS ONE OF THE MOST CONSERVATIVE JUSTICES ON A CONSERVATIVE COURT A ROLE HE WILL PURSUE MORE ADAMANTLY PEOPLE CLOSE TO HIM SAY AS PRESIDENT CLINTON APPOINTS LIBERAL JUSTICES TO REPLACE RETIRING JUSTICE BYRON WHITE AND OTHER AGING MEMBERS OF THE COURT HIS ANGER OVER WHAT HE CALLED HIS HIGHTECH LYNCHING BEFORE THE SENATE JUDICIARY COMMITTEE HASN'T COMPLETELY DISSIPATED JUSTICE THOMAS WHO VEHEMENTLY DENIED MS HILL'S CHARGES HAD LONG FEARED SOME SORT OF RETRIBUTION FOR BEING AN UPPITY BLACK MAN AS HE HAS PUT IT HIS ERSATZ TRIAL BEFORE MILLIONS OF TELEVISION VIEWERS WAS THAT NIGHTMARE COME TRUE SAYS CLINT BOLICK A THOMAS FRIEND AND FORMER AIDE CERTAINLY HE IS SCARRED BY IT HOW COULDN'T HE BE ONE WAY JUSTICE THOMAS REACTED TO THE CONFIRMATION SPECTACLE HAS BEEN TO RETREAT NEVER MUCH OF A SOCIALITE HE WITHDREW FURTHER INTO A SMALL CIRCLE OF FRIENDS AND CONSERVATIVE LAW CLERKS HE TELLS FRIENDS THAT HE STOPPED WATCHING TV NEWS OR READING NEWSPAPERS OTHER THAN A NEWSLETTER ON HIS BELOVED DALLAS COWBOYS HE AND HIS WIFE VIRGINIA MOVED LAST YEAR FROM A CLOSEIN WASHINGTON SUBURB TO A SEMIRURAL PART OF FAIRFAX COUNTY VA AN HOUR'S DRIVE FROM THE CAPITAL JUSTICE THOMAS LIKES TO BOAST THAT YOU CAN'T EVEN SEE HIS NEW HOME FROM THE ROAD HE LIKEWISE RELISHES THE ISOLATION THAT IS POSSIBLE AT THE SUPREME COURT WHERE HE CAN AVOID TV CAMERAS AND REPORTERS I WANT TO GET MY ANONYMITY BACK HE SAID AT A PRESS RECEPTION IN DECEMBER 1991 AND HAS SINCE REFUSED ALL INTERVIEW REQUESTS ON THE JOB THE FORMER FEDERAL APPEALS COURT JUDGE HAS MADE A CONSCIOUS EFFORT TO PROVE THAT HE IS MORE THAN THE MARGINALLY QUALIFIED TOKEN BLACK REPUBLICAN PORTRAYED BY HIS LIBERAL ANTAGONISTS PEOPLE ASKED IS HE QUALIFIED' RECALLS ARMSTRONG WILLIAMS ANOTHER FRIEND ALL THESE LIBERAL GROUPS SAID NO HE FELT HE HAD TO SHOW THEY WERE WRONG HE HAS ANSWERED IN PART WITH SHEER VOLUME IN HIS FIRST TERM JUSTICE THOMAS WROTE 22 OPINIONS OFTEN WRITING SEPARATELY EVEN WHEN IN THE MAJORITY BY CONTRAST HIS FELLOW BUSH APPOINTEE DAVID SOUTER WROTE 12 IN HIS ROOKIE YEAR ALTHOUGH LARGELY SILENT DURING ORAL ARGUMENTS JUSTICE THOMAS IS ASSERTIVE ON PAPER PUSHING HIS PHILOSOPHY THAT THE HIGH COURT'S JOB IS TO INTERPRET THE CONSTITUTION NOT TO LEGISLATE IN HIS VIEW THE FEDERAL JUDICIARY HAS NO CONSTITUTIONAL ROLE SECONDGUESSING ELECTED STATE OFFICIALS WHO FOR EXAMPLE WANT TO RESTRICT ABORTIONS OR IMPOSE CAPITAL PUNISHMENT HE WANTS TO REMOVE HIMSELF AND REMOVE OTHER FEDERAL JUDGES FROM THESE INTENSE DEBATES SAYS ONE OF HIS FORMER LAW CLERKS JUSTICE THOMAS HAS BECOME THE MOST LOYAL ALLY OF JUSTICE ANTONIN SCALIA A BRILLIANT BUT DIVISIVE FORCE ON THE COURT'S RIGHT WING WHO RARELY TRIES TO ACCOMMODATE THE VIEWS OF OTHER JUSTICES AND WHO LIKE JUSTICE THOMAS OFTEN WRITES SEPARATE OPINIONS WHEN IN THE MAJORITY SOMETIMES JOINED BY CHIEF JUSTICE WILLIAM REHNQUIST JUSTICES SCALIA AND THOMAS ATTACK THEIR COLLEAGUES FOR DECLINING TO OVERRULE LIBERAL PRECEDENTS PROTECTING INDIVIDUAL RIGHTS IN CONSERVATIVE LEGAL CIRCLES IT IS NOTED CAUSTICALLY THAT WHEN JUSTICES SUCH AS ANTHONY KENNEDY AND SANDRA DAY O'CONNOR MOVED FROM THE RIGHT TOWARD THE CENTER MEDIA PUNDITS DESCRIBED THEM AS GROWING OR EVOLVING JUSTICE THOMAS SOMETIMES ENTERTAINS CURRENT AND FORMER LAW CLERKS BY DECLARING I AIN'T EVOLVING FOLLOWED BY HIS TRADEMARK BOOMING LAUGH SPOOFING LEGALESE EMPLOYED BY THE LATE LIBERAL JUSTICE WILLIAM DOUGLAS TO DISCOVER THE RIGHT TO PRIVACY IN THE PENUMBRAS SURROUNDING CONSTITUTIONAL PROVISIONS JUSTICE THOMAS KEEPS A SIGN IN HIS CHAMBERS THAT REQUESTS PLEASE DON'T EMANATE IN THE PENUMBRAS JUSTICE THOMAS HAS SURROUNDED HIMSELF WITH THE MOST CONSERVATIVE GROUP OF CLERKS AT THE HIGH COURT AND THE UNVARNISHED RHETORIC OF THEIR DRAFTS GIVES HIS OPINIONS A BLUNT TONE MICHAEL GERHARDT A LIBERAL LAW PROFESSOR AT THE COLLEGE OF WILLIAM AND MARY IN VIRGINIA FINDS JUSTICE THOMAS MORE DOCTRINAIRE THAN ANYONE ELSE ON THE COURT OTHER THAN SCALIA BUT HE ADDS HIS OPINIONS STRIKE ME AS COMPETENT HE IS WITHIN THE LEGAL MAINSTREAM IF ON THE RIGHT EDGE A CONSERVATIVE LEGAL SCHOLAR DOUGLAS KMIEC AT NOTRE DAME UNIVERSITY SAYS JUSTICE THOMAS'S OPINIONS SHOW THAT HE HAS A TENDENCY TO THINK AHEAD AND TO PREFER ANALYTICAL ORDERLINESS RATHER THAN CLEVER DISTINCTIONS FROM PAST CASES JUSTICE THOMAS JOINED A SCALIALED MAJORITY IN JANUARY THAT SAID WOMEN COULDN'T USE A CIVILRIGHTS CONSPIRACY STATUTE TO SEEK FEDERAL COURT ORDERS BLOCKING MILITANT PROTESTS AT ABORTION CLINICS JUSTICE THOMAS AGREED WITH THE REASONING THAT THE STATUTE WAS WRITTEN TO PROTECT BLACKS AGAINST INTIMIDATION UNDER JIM CROW LAWS NOT TO PROTECT WOMEN SEEKING ABORTIONS JUSTICE THOMAS HAS EXPRESSED PRIDE TO FRIENDS ABOUT ADDING A DISTINCTIVE VOICE AND PRESENCE ON RACIAL ISSUES AT THE COURT RAISING QUESTIONS ABOUT THE LEGACY OF THE CIVILRIGHTS MOVEMENT THAT HIS WHITE COLLEAGUES HESITATE TO CONFRONT LAST JUNE FOR EXAMPLE HE WROTE A SEPARATE OPINION IN THE COURT'S DECISION REQUIRING MISSISSIPPI TO MOVE FURTHER TO DESEGREGATE ITS PUBLIC COLLEGES THE SEEMINGLY INEVITABLE CONSEQUENCE OF THE RULING WAS THAT THE STATE WOULD CLOSE SOME OF ITS STRUGGLING HISTORICALLY BLACK SCHOOLS WHOSE PROGRAMS DUPLICATED THOSE AT BETTERFINANCED WHITE SCHOOLS THE RESULT WOULD BE INTEGRATION BUT JUSTICE THOMAS INSISTED THAT TOO MUCH FORCED INTEGRATION WOULD DESTROY INSTITUTIONS THAT HELPED MANY BLACKS MOVE UP IN LIFE HE QUOTED WEB DU BOIS THE TURNOFTHECENTURY CHAMPION OF BLACK ADVANCEMENT WE MUST RALLY TO THE DEFENSE OF OUR SCHOOLS HIS ROLE IN THIS REGARD GOES BEYOND FORMAL OPINIONS ALTHOUGH HE CRAVES SECLUSION HE OFTEN PLAYS HOST TO VISITING STUDENTS ESPECIALLY FROM INNERCITY NEIGHBORHOODS ONE DAY RECENTLY MR BOLICK A WASHINGTON LAWYER BROUGHT ONE OF HIS CLIENTS A POOR BLACK MAN FROM DETROIT TO MEET JUSTICE THOMAS CLARENCE PUT HIS ARM AROUND THIS GUY SHOWED HIM AROUND THE COURT AND BEFORE LONG THEY WERE SHARING STORIES OF GROWING UP POOR THE LAWYER RECOUNTS IT'S HARD TO IMAGINE ANY OF THE OTHER JUSTICES IN THIS SCENE LIKE THE MAN HE REPLACED CIVILRIGHTS GIANT THURGOOD MARSHALL JUSTICE THOMAS BELIEVES THAT HIS WHITE COLLEAGUES OFTEN DON'T UNDERSTAND THE REALITY OF RACE RELATIONS BUT JUSTICE THOMAS'S REALITY IS TYPICALLY THE OPPOSITE OF HIS PREDECESSOR'S THE LATE JUSTICE MARSHALL UNSUCCESSFULLY OPPOSED THE DEATH PENALTY IN PART BECAUSE HE BELIEVED ITS APPLICATION WAS INFECTED WITH RACISM JUSTICE THOMAS NOT ONLY FAVORS THE DEATH PENALTY BUT SUGGESTED IN A SOLO OPINION IN JANUARY THAT IT IS MORE FAIR TO HAVE MANDATORY DEATH STATUTES FOR CERTAIN CRIMES EVEN THOUGH THE COURT RULED IN 1976 THAT MANDATORY CAPITAL PUNISHMENT IS UNCONSTITUTIONAL FINDING HIMSELF AT ODDS WITH THE MAJORITY IN CASES IN WHICH HE IS ESPOUSING A DEEPLY HELD PRINCIPLE DOESN'T BOTHER JUSTICE THOMAS PEOPLE CLOSE TO HIM SAY HE REVELS IN DISSENTING SAYS MR BOLICK WHO HELPS RUN THE INSTITUTE FOR JUSTICE A CONSERVATIVE ADVOCACY GROUP IN WASHINGTON HE IS ACTUALLY LESS CONFIDENT WHEN HE IS PART OF A MAJORITY MONTHS BEFORE ANITA HILL SURFACED PUBLICLY IN OCTOBER 1991 PRESIDENT BUSH HAD PUT THENJUDGE THOMAS IN AN AWKWARD POSITION BY MAKING THE DUBIOUS CLAIM THAT HE WAS THE MOST QUALIFIED PERSON FOR THE HIGH COURT JUDGE THOMAS COMPOUNDED THE PROBLEM BY FOLLOWING THE INSTRUCTIONS OF HIS ADMINISTRATION HANDLERS TO STONEWALL ANY CONTROVERSIAL LEGAL QUESTIONS THAT MADE HIM SEEM EVASIVE AND EXACERBATED CONCERNS ABOUT HIS LEGAL ACUMEN FRIENDS REPORT THAT IN RETROSPECT JUSTICE THOMAS REGRETS FOLLOWING THE WHITE HOUSE PLAYBOOK WHEN THE SEXHARASSMENT CHARGES WERE LEVELED HE FIRED HIS HANDLERS AND MOUNTED AN ENRAGED AND ULTIMATELY SUCCESSFUL COUNTERATTACK ON THE JUDICIARY COMMITTEE AND THE LIBERAL ACTIVISTS WHO URGED MS HILL TO COME FORWARD THE LURID TELEVISED TESTIMONY CAUSED GREAT UNEASE AMONG SOME JUSTICES THEY FEARED THE CONTROVERSY WOULD CAST A CLOUD OVER THE SUPREME COURT JUST DAYS AFTER THE HEARINGS CONCLUDED JUSTICE HARRY BLACKMUN SAID IN A SPEECH IN COLUMBUS OHIO I THINK THE COURT HAS BEEN DAMAGED BY THE EVENTS OF THE LAST FEW WEEKS AS ALL OF US HAVE BEEN DAMAGED HE ADDED HOPEFULLY BUT PERHAPS WE'LL SURVIVE DESPITE THE STRAINED CIRCUMSTANCES JUSTICE THOMAS WAS RECEIVED CORDIALLY BY HIS NEW COLLEAGUES BUT THERE IS AN UNDERCURRENT OF TENSION BETWEEN HIM AND JUSTICE O'CONNOR PEOPLE FAMILIAR WITH THE WORKINGS OF THE COURT SAY ALTHOUGH IT HAS SURFACED PUBLICLY ONLY IN THE JUSTICES' OPINIONS JUSTICE THOMAS HAS COME TO AGREE WITH JUSTICE SCALIA'S VIEW SHARED WITH CONSERVATIVE CLERKS AND OTHERS THAT JURISTS WHO SEEK COMPROMISE RATHER THAN THE SINGLE RIGHT ANSWER IN A CASE ARE POLITICIANS MASQUERADING IN BLACK ROBES JUSTICE O'CONNOR A PROPONENT OF SPLITTING DIFFERENCES AND MOVING CAUTIOUSLY GETS TAGGED WITH THIS PEJORATIVE MOST OFTEN IN PRIVATE CONVERSATION AT THE HIGH COURT SHE IN TURN HAS ACCUSED JUSTICE THOMAS IN HER OPINIONS OF MISCONSTRUING HIGH COURT PRECEDENT IN HIS HURRY TO REMAKE CONSTITUTIONAL LAW IN ONE CASE LAST TERM JUSTICE THOMAS FILED A DISSENT SIGNED ONLY BY JUSTICE SCALIA OBJECTING TO A RULING THAT SAID OFFICIAL BEATINGS OF PRISON INMATES VIOLATE THE CONSTITUTION EVEN IF GUARDS DON'T INFLICT SERIOUS INJURY THRASHING INMATES IS DEPLORABLE JUSTICE THOMAS SAID BUT PUNISHMENT IS NOT CRUEL AND UNUSUAL UNLESS SUBSTANTIAL HARM IS DONE IN HER MAJORITY OPINION JUSTICE O'CONNOR WROTE THAT TO DENY AS THE DISSENT DOES THE DIFFERENCE BETWEEN PUNCHING A PRISONER IN THE FACE AND SERVING HIM UNAPPETIZING FOOD IS TO IGNORE THE CONCEPTS OF DIGNITY CIVILIZED STANDARDS HUMANITY AND DECENCY THAT ANIMATE THE EIGHTH AMENDMENT TYPICALLY DIRECT JUSTICE THOMAS'S DISSENT DISMISSED THE MAJORITY VIEW AS YET ANOTHER MANIFESTATION OF THE PERVASIVE VIEW THAT THE FEDERAL CONSTITUTION MUST ADDRESS ALL ILLS IN OUR SOCIETY A 54 DEATHPENALTY RULING THE HIGH COURT ISSUED EARLY THIS YEAR PROVIDES A SNAPSHOT OF JUSTICE THOMAS'S IDIOSYNCRATIC APPROACH TO CONTROVERSIAL ISSUES JUSTICE THOMAS JOINED CHIEF JUSTICE REHNQUIST AND JUSTICES WHITE SCALIA AND KENNEDY IN REJECTING THE APPEAL OF A CONVICTED TEXAS MURDERER WHO CLAIMED THE JURY HADN'T FULLY CONSIDERED EVIDENCE OF HIS TROUBLED UPBRINGING AND REDEEMING CHARACTER TRAITS WHEN IT SENTENCED HIM TO DIE DISSENTING WERE JUSTICES SOUTER O'CONNOR STEVENS AND BLACKMUN THE MAJORITY IN AN OPINION WRITTEN BY JUSTICE WHITE DECIDED THE CASE ON NARROW PROCEDURAL GROUNDS BUT JUSTICE THOMAS WANTED TO GO MUCH FURTHER IN A SEPARATE 23PAGE OPINION SIX PAGES LONGER THAN THE MAJORITY'S HE DISPARAGED TWO DECADES' WORTH OF HIGH COURT PRECEDENT ON CAPITAL PUNISHMENT AND MADE HIS CASE FOR MANDATORY DEATHPENALTY LAWS HE ARGUED THAT BY REQUIRING THAT JURIES BE GIVEN BROAD DISCRETION TO SHOW MERCY IN MURDER CASES THE SUPREME COURT INADVERTENTLY HAD CREATED OPPORTUNITIES FOR WHITE JURORS TO GO EASY ON WHITE DEFENDANTS TO WITHHOLD THE DEATH PENALTY OUT OF SYMPATHY FOR A DEFENDANT WHO IS A MEMBER OF A FAVORED GROUP IS NO DIFFERENT FROM A DECISION TO IMPOSE THE PENALTY ON THE BASIS OF NEGATIVE BIAS JUSTICE THOMAS WROTE ONE OF JUSTICE THOMAS'S FORMER LAW CLERKS EXPLAINS THAT THE JUSTICE DOESN'T SEE DEATH PENALTY CASES AS POSING LIFEORDEATH QUESTIONS FOR HIM THOSE ARE QUESTIONS PROPERLY ANSWERED BY JURIES NOT FEDERAL JUDGES 9304270003 930427 BUSINESS BRIEF QUANTUM CORP LOWERTHANEXPECTED PROFIT IS LINKED TO PRICING PRESSURE QUANTUM CORP CITING INTENSE PRESSURE ON PRICING AND MARGINS REPORTED LOWERTHANEXPECTED NET INCOME OF 263 MILLION OR 50 CENTS A SHARE FOR THE FISCAL FOURTH QUARTER THE RESULTS IN THE PERIOD ENDED MARCH 31 COMPARE WITH NET OF 172 MILLION OR 38 CENTS A SHARE IN THE YEARAGO PERIOD SALES IN THE MOST RECENT QUARTER FOR THE MILPITAS CALIF COMPUTER DISKDRIVE MAKER SOARED 47 TO A RECORD 507 MILLION FROM 345 MILLION A YEAR AGO DESPITE THE STRONG SALES GROWTH EARNINGS FELL SHORT OF ANALYSTS' ESTIMATES FOR A NET OF BETWEEN 55 CENTS AND 67 CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC STOCK IN THE COMPANY WHICH RELEASED ITS EARNINGS RESULTS NEAR THE CLOSE OF FINANCIAL MARKETS YESTERDAY FELL 125 CENTS TO 12875 IN NATIONAL OVERTHECOUNTER TRADING WILLIAM J MILLER CHIEF EXECUTIVE OFFICER SAID EXCESS INVENTORY IN THE INDUSTRY HAS PUT PRESSURE ON PRICING AND MARGINS THAT PRESSURE ESCALATED TOWARD THE END OF THE QUARTER NEGATIVELY IMPACTING OUR PROFITABILITY MR MILLER SAID 9304270002 930427 DIVIDEND NEWS CAPE COD BANK & TRUST CO CAPE COD BANK & TRUST CO REPORTED THAT THE FEDERAL DEPOSIT INSURANCE CORP DECLINED ITS REQUEST FOR PERMISSION TO PAY A DIVIDEND LAST MONTH AFTER THE HYANNIS MASS COMPANY AGREED UNDER A CEASEANDDESIST ORDER WITH THE FDIC TO AMMEND CERTAIN PRACTICES CAPE COD BANK WARNED THAT APPROVAL FOR THE CONTINUED PAYMENT OF QUARTERLY DIVIDENDS CANNOT BE ASSURED 9304270001 930427 COASTAL TO CALL 1125 NOTES HOUSTON COASTAL CORP SAID IT PLANS EARLY REDEMPTION OF 500 MILLION OF 1125 SENIOR NOTES DUE JUNE 15 1996 THE DIVERSIFIED ENERGY HOLDING COMPANY SAID IT PLANS TO REDEEM THE NOTES ON JUNE 15 1993 9304260180 930426 CHEROKEE UNIT SEEK CHAPTER 11 PROTECTION IN BANKRUPTCY COURT SUNLAND CALIF CHEROKEE INC AND ITS CHEROKEE GROUP UNIT SAID THEY JOINTLY FILED FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE THE APPAREL AND FOOTWEAR CONCERN SAID THE COMPANIES FILED IN DELAWARE UNDER A PREPACKAGED RESTRUCTURING PLAN APPROVED BY HOLDERS OF ITS SECURITIES CHEROKEE SAID THE PLAN CALLS FOR REDUCING DEBT AND PREFERRED STOCK OBLIGATIONS TO ABOUT 90 MILLION FROM ABOUT 190 MILLION CURRENTLY ANNUAL FIXED CHARGES FROM INTEREST AND PREFERRED STOCK DIVIDENDS WOULD BE SLASHED TO ABOUT 12 MILLION FROM MORE THAN 27 MILLION CARY COOPER CHEROKEE'S CHIEF FINANCIAL OFFICER SAID IN AN INTERVIEW THAT SHAREHOLDERS WILL END UP WITH AN 8 STAKE IN CHEROKEE INC WHICH WILL MERGE WITH ITS SUBSIDIARY AS OF FEB 27 CHEROKEE HAD ASSETS OF ABOUT 204 MILLION AND 200 MILLION IN LIABILITIES HE SAID THE COMPANY SAID THAT IT ANTICIPATES EMERGING FROM CHAPTER 11 PROTECTION BEFORE MAY 31 THE END OF ITS FISCAL YEAR AND THAT THE FILING WOULDN'T HURT CHEROKEE'S CUSTOMERS SUPPLIERS OR TRADE CREDITORS ADDITIONALLY CHEROKEE SAID A REVISED CREDIT AGREEMENT WITH BANK LENDERS ARRANGED BEFORE THE FILING WILL CONTINUE THE COMPANIES' FINANCING ARRANGEMENTS ON SUBSTANTIALLY THE SAME TERMS AS BEFORE CHEROKEE HAS BEEN WRESTLING WITH A HEAVY DEBT LOAD SINCE A 1989 MANAGEMENTLED BUYOUT OF THE COMPANY WHICH WENT PUBLIC AGAIN IN JUNE 1991 IN 1992 CHEROKEE REPORTED A NET LOSS OF 98 MILLION OR 114 A SHARE ON SALES OF 1949 MILLION WHILE CHEROKEE PLANS TO EMERGE FROM BANKRUPTCYCOURT PROTECTION IN A SHORT TIME ITS LONGTERM ECONOMIC HEALTH REMAINS OPEN TO QUESTION SAID PAUL DAVNER AN ANALYST WITH BDS SECURITIES CORP IN NEW YORK IF THE COMPANY STABILIZES AT THE CURRENT LEVEL OR WORSENS THIS REORGANIZATION PLAN COULD JUST BE A BANDAID MR DAVNER SAID 9304260178 930426 BUSINESS BRIEF ELDORADO BANCORP FIRSTQUARTER LOSS IS POSTED BANK FIRM SUSPENDS PAYOUT ELDORADO BANCORP TUSTIN CALIF REPORTED A FIRSTQUARTER LOSS OF 24 MILLION OR 88 CENTS A SHARE REFLECTING AN ADDITIONAL LOANLOSS PROVISION AND A 34 MILLION WRITEDOWN THE BANK HOLDING COMPANY SAID ITS BOARD TEMPORARILY SUSPENDED CASH DIVIDENDS A YEAR EARLIER ELDORADO BANCORP HAD PROFIT OF 749000 OR 27 CENTS A SHARE THE COMPANY ATTRIBUTED THE LATEST QUARTER'S LOSS TO A 18 MILLION INCREASE IN LOANLOSS RESERVES DUE TO CALIFORNIA'S WEAK ECONOMY AS WELL AS A 34 MILLION WRITEDOWN AGAINST OWNED REAL ESTATE DUE TO THE ERODING VALUES OF CALIFORNIA REAL ESTATE JB CROWELL PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY ALSO TOOK A 300000 RESTRUCTURING CHARGE AND ELIMINATED ABOUT 10 JOBS HE SAID THE COMPANY WOULD RESUME DIVIDEND PAYMENTS WHEN PRUDENT 9304260177 930426 HEALTHCARE SAYS OFFER FOR CONTROLLING STAKE IS SET BY HEALTHVEST AUSTIN TEXAS HEALTHCARE INTERNATIONAL INC SAID HEALTHVEST A REAL ESTATE INVESTMENT TRUST THAT OWNS MANY OF HEALTHCARE'S HOSPITALS PROPOSED TO ACQUIRE GREENERY REHABILITATION GROUP INC'S CONTROLLING INTEREST IN AND CLAIMS AGAINST HEALTHCARE TERMS OF THE PROPOSAL WEREN'T FULLY DISCLOSED BUT HEALTHCARE SAID GREENERY WOULD RECEIVE AN UNSPECIFIED SUM EQUAL TO GREENERY'S INVESTMENT IN HEALTHCARE IN ADDITION GREENERY WOULD WITHDRAW FROM MANAGEMENT OF HEALTHCARE AND FROM SPONSORSHIP OF REORGANIZATION PLANS FOR HEALTHCARE UNITS THE AGREEMENT STILL NEEDS TO BE APPROVED BY THE FEDERAL BANKRUPTCY COURT AND BY HEALTHVEST'S SENIOR SECURED CREDITORS DETAILS ARE EXPECTED TO BE FILED WITH THE COURT WITHIN THE NEXT FEW DAYS HEALTHCARE SAID HEALTHCARE WHICH OWNS AND OPERATES HOSPITALS IN THREE STATES HAS BEEN IN CHAPTER 11 BANKRUPTCY PROCEEDINGS SINCE 1991 BOTH IT AND HEALTHVEST HAVE PROPOSED COMPETING REORGANIZATION PLANS UNDER HEALTHCARE'S PROPOSED REORGANIZATION PLAN GREENERY WOULD ACQUIRE SIX HOSPITALS NOW OPERATED BY HEALTHCARE UNITS FOR ABOUT 22 MILLION INCLUDING ABOUT 9 MILLION GREENERY CURRENTLY HAS INVESTED IN HEALTHCARE THE BALANCE OF HEALTHCARE'S ASSETS WOULD BE LIQUIDATED AND THE PROCEEDS DISTRIBUTED TO CREDITORS UNDER HEALTHVEST'S PROPOSED REORGANIZATION PLAN HEALTHVEST WOULD MERGE INTO HEALTHCARE AND HEALTHVEST'S SHAREHOLDERS WOULD RECEIVE ABOUT 96 OF THE COMBINED COMPANY HEALTHCARE'S SUBORDINATED BONDHOLDERS WOULD RECEIVE ABOUT 4 OF THE COMBINED COMPANY GREENERY IS BASED IN NEWTON MASS AND OPERATES 21 REHABILITATION AND NURSING CENTERS GREENERY SAID IT WOULD VIGOROUSLY PURSUE ITS OWN REORGANIZATION PLAN FOR HEALTHCARE IF ITS AGREEMENT WITH HEALTHVEST ISN'T APPROVED 9304260176 930426 HEARD ON THE STREET INVESTING ABROAD LOOKING FOR BARGAINS IN FOREIGN STOCKS AT HOME BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IF YOU WANT TO INVEST ABROAD SOMETIMES THERE'S NO PLACE LIKE HOME MONEY MANAGERS SAY INVESTORS WHO ARE LOOKING TO BUY FOREIGN STOCKS CAN FIND PLENTY OF BARGAINS AMONG THE FOREIGN COMPANIES THAT TRADE ON US STOCK MARKETS IN THE FORM OF AMERICAN DEPOSITARY RECEIPTS ADRS ARE A CONVENIENT WAY TO INVEST IN FOREIGN STOCKS EACH ADR REPRESENTS ONE SHARE OR A SPECIFIED NUMBER OF SHARES OF A FOREIGN STOCK ADRS ARE ISSUED BY US BANKS WHICH HOLD THE UNDERLYING FOREIGN SHARES IN CUSTODY THE US INVESTOR ENJOYS THE CONVENIENCE OF TRADING IN DOLLARS AND IN FAMILIAR ARENAS SUCH AS THE NEW YORK STOCK EXCHANGE OR THE NASDAQ OVERTHECOUNTER MARKET THE CASE FOR HAVING A PORTION OF ONE'S INVESTMENT PORTFOLIO ABROAD ALWAYS COGENT SEEMS PARTICULARLY STRONG NOW MONEY MANAGERS SAY THE IDEAL TIME TO BUY STOCKS IS SIX MONTHS BEFORE AN ECONOMIC RECOVERY STARTS SAYS ROBERT STOVALL PRESIDENT OF STOVALL/TWENTYFIRST ADVISERS INC JAPAN AND MOST OF EUROPE ARE IN RECESSION BUT MANY INVESTMENT PROFESSIONALS LOOK FOR A RECOVERY TO BEGIN LATE THIS YEAR OR EARLY NEXT YEAR MOREOVER RIGHT NOW STOCKS ABROAD TEND TO BE CHEAPER THAN US STOCKS OUR MARKET IS PRETTY RICHLY VALUED BEING HELD UP BY LOW INTEREST RATES LOW INFLATION AND HOPES THAT OUR NEW ACTIVIST GOVERNMENT IS GOING TO DO SOME GOOD THINGS SAYS MR STOVALL IF ANY OF THOSE HOPES ARE BRUISED OR SHATTERED OUR MARKET IS SINGULARLY VULNERABLE AMONG MR STOVALL'S FAVORITE ADRS ARE REUTERS HANSON AND NORSK HYDRO REUTERS THE BRITISH NEWS AGENCY HAS A STRONG POSITION GLOBALLY PARTICULARLY STRONG IN THE FAR EAST HE SAYS HE BELIEVES THAT REUTERS WILL SOON STRIKE A JOINTVENTURE DEAL WITH AN AMERICAN TELEVISION NEWS ORGANIZATION PERHAPS NBC OR CNN HANSON A DIVERSIFIED BRITISH COMPANY WITH ABOUT HALF ITS OPERATIONS IN THE US APPEALS TO MR STOVALL BECAUSE OF ITS CHEAP STOCK PRICE AND ITS HEAVY INVOLVEMENT IN THE GRAVELANDAGGREGATES BUSINESS HE SAYS ROAD BUILDING SHOULD TURN UP IN THE US IF WE DO LAUNCH INTO AN INFRASTRUCTUREIMPROVEMENT PROGRAM AS PRESIDENT CLINTON PROPOSED DURING THE ELECTION CAMPAIGN THE STOCK SELLS FOR LESS THAN 11 TIMES THE PAST FOUR QUARTERS' EARNINGS AND YIELDS 54 IN DIVIDENDS NORSK HYDRO IS A NORWEGIAN COMPANY THAT PRODUCES OIL NATURAL GAS AND METALS INCLUDING ALUMINUM AS SUCH MR STOVALL SAYS IT IS A TRIPLE PLAY ON THE LIKELY EUROPEAN ECONOMIC RECOVERY LEUTHOLD GROUP IN MINNEAPOLIS RECENTLY PURCHASED ADRS IN A FISTFUL OF JAPANESE COMPANIES TOYOTA SONY HITACHI MATSUSHITA ELECTRIC INDUSTRIAL HONDA AND CANON WE THINK THIS IS A GOOD TIME TO BUY JAPANESE STOCKS BECAUSE INVESTOR SENTIMENT IS STILL NEGATIVE TOWARDS JAPAN SAYS JIM FLOYD A SENIOR ANALYST AT LEUTHOLD THOSE PARTICULAR STOCKS APPEAL TO HIM BECAUSE THEY ARE A LITTLE CHEAPER THAN THE JAPANESE MARKET AS A WHOLE MR FLOYD READILY CONCEDES THAT JAPAN IS IN A RECESSION A BAD RECESSION AND THAT CORPORATE EARNINGS ARE EL STINKO BUT THAT HE SAYS IS WHAT CREATES THE BUYING OPPORTUNITY AND HE AND HIS COLLEAGUES SEE A FEW SIGNS OF RECOVERY BEGINNING TO APPEAR SUCH AS A DECLINE IN INVENTORIES AN UPTICK IN AUTO SALES INSIDE JAPAN AND A POSSIBLE BOTTOMING IN SHIPMENTS OF DURABLE CONSUMER GOODS MANAGERS LIKE MR STOVALL AND LEUTHOLD GROUP CERTAINLY AREN'T ALONE IN THEIR TASTE FOR ADRS THE DOLLAR VALUE OF ADR TRADES ON THE BIG BOARD SWELLED 43 LAST YEAR TO 1104 BILLION ACCORDING TO BANK OF NEW YORK THE LARGEST ADR CUSTODIAN BANK TRADING VOLUME FELL SLIGHTLY ON NASDAQ TO 124 BILLION AND WAS UP SLIGHTLY ON THE AMERICAN STOCK EXCHANGE TO 2 BILLION BUT NOT EVERYONE LOVES ADRS JEANMARIE EVEILLARD MANAGER OF SOGEN INTERNATIONAL FUND SAYS THEY RESTRICT INVESTORS' CHOICES TO A FEW HUNDRED OF THE LARGEST FOREIGN STOCKS MR EVEILLARD USUALLY PREFERS TO BUY STOCKS IN THEIR COUNTRY OF ISSUE OUTSIDE THE US WE HAVE THE CHOICE AMONG TENS OF THOUSANDS OF SECURITIES HE SAYS INCLUDING THE SMALL AND OBSCURE INVESTORS SHOULD ALSO REALIZE THAT JUST BECAUSE ADRS ARE PRICED IN DOLLARS AND PURCHASED IN THE US DOESN'T MEAN THEY ARE IMMUNE TO CURRENCY FLUCTUATIONS THE PRICE OF AN ADR WILL STILL SWING AS THE VALUES OF THE YEN FRANC OR OTHER CURRENCIES CHANGE AGAINST THE DOLLAR STILL MR EVEILLARD HAS A KIND WORD FOR ONE ADR STOCK HITACHI WHICH IS SELLING AT A MERE FIVE TIMES CASH FLOW SURE THEY'RE IN MAINFRAME COMPUTERS AND THAT'S NOT DOING TOO WELL MR EVEILLARD SAYS BUT THEY ARE ALSO IN SEMICONDUCTORS A FIELD THAT IS DOING MUCH BETTER DAVID KATZ CHIEF INVESTMENT OFFICER OF MATRIX ASSET ADVISORS IN NEW YORK SAYS NOT MANY ADRS CURRENTLY MEET HIS FIRM'S STRICT VALUE CRITERIA ONE THAT DOES IS ELF AQUITAINE A FRENCH OIL COMPANY HE SAYS IT IS LIKE ROYAL DUTCH PETROLEUM A DECADE AGO IN THAT IT IS SELLING AT A 30 TO 40 DISCOUNT TO MOST OIL COMPANIES BASED ON THE RATIO OF ITS STOCK PRICE TO ITS PERSHARE EARNINGS ALTHOUGH IT'S ONE OF THE WORLD'S LARGEST OIL COMPANIES IT'S FAIRLY UNDERFOLLOWED BY INSTITUTIONAL INVESTORS MR KATZ SAYS AS THE WORLD INVESTMENT COMMUNITY GETS TO KNOW ELF AQUITAINE BETTER HE THINKS THE PRICE WILL CLIMB DAVID NELSON PRINCIPAL AT INVESTMENT COUNSELORS OF MARYLAND IN BALTIMORE LIKES BOTH ELF AQUITAINE AND ROYAL DUTCH THE LATTER HE SAYS HAS DONE A WONDERFUL JOB OF REPLACING RESERVES THROUGH EXPLORATION AND DEVELOPMENT IN CONTRAST HE SAYS SOME BIG US OIL COMPANIES LIKE EXXON HAVE USED THEIR EXTRA CASH FLOW TO BUY BACK SHARES THAT HELPS THE STOCK PRICE BUT DOESN'T MAKE THE UNDERLYING BUSINESS GROW MR NELSON IS KEEN ON GRUPO DINA THE LARGEST TRUCK AND BUS MANUFACTURER IN MEXICO THAT DOESN'T SOUND TOO EXCITING UNTIL YOU KNOW THAT 87 OF ALL FREIGHT TRAFFIC IN MEXICO MOVES BY TRUCK AND 98 OF INTERCITY PASSENGER TRAFFIC MOVES BY BUS HE SAYS THE STOCK IS SELLING FOR LESS THAN NINE TIMES ESTIMATED 1993 PROFIT ABOUT HALF THE VALUATION OF COMPARABLE US COMPANIES SUCH AS DANA AND PACCAR HE SAYS THE BALTIMORE MONEY MANAGER ALSO LIKES TELEFONICA DE ESPANA THE SPANISH TELEPHONE COMPANY SPAIN IS ONE OF THE FASTESTGROWING COUNTRIES IN EUROPE HE SAYS BUT COMPARED WITH MANY COUNTRIES IT HAS FEW TELEPHONE LINES PER CAPITA TELEFONICA HAS BEEN SPENDING HEAVILY TO MEET DEMAND CRIMPING PROFITS BUT MR NELSON SAYS THE COMPANY SEEMS TO BE COMING TO THE END OF THAT MASSIVE CAPITAL SPENDING OVERALL SAYS MR NELSON ADRS ARE A USEFUL TOOL WE TRY TO FIND GOOD VALUE WHEREVER WE CAN HE SAYS IT WOULD BE ARROGANT OF US AS AMERICANS TO THINK THAT THE BEST VALUES WERE ALWAYS IN AMERICA 9304260175 930426 WHAT'S NEWS WORLDWIDE YELTSIN APPEARED TO BE WINNING A VOTE OF CONFIDENCE IN RUSSIA TURNOUT WAS RUNNING AT ABOUT 65 FOR THE REFERENDUM AN EXIT POLL TAKEN IN 16 CITIES FOUND SUPPORT FOR YELTSIN WAS HIGH BUT HE WAS LIKELY TO FALL SHORT OF THE TOTAL HE NEEDED TO FORCE NEW PARLIAMENTARY ELECTIONS MANY SAID THEY VOTED FOR YELTSIN BECAUSE THERE WAS NO GOOD ALTERNATIVE ADDING THAT THEY DISTRUSTED RUSSIA'S CONGRESS EVEN MORE THAN THE PRESIDENT YELTSIN WAS SEEKING A STRONG VOTER MANDATE TO HELP BREAK A POLITICAL IMPASSE WITH HIS CONSERVATIVE OPPONENTS AND PRESS AHEAD WITH A NEW CONSTITUTION BOSNIAN SERB LEADER KARADZIC REBUFFED A LASTDITCH ATTEMPT TO GAIN HIS BACKING FOR A UN PEACE PLAN AND AVOID TOUGHER SANCTIONS DUE TO TAKE EFFECT TOMORROW AGAINST YUGOSLAVIA AFTER MEETING WITH EC NEGOTIATOR OWEN KARADZIC TOLD HIS PARLIAMENT IT HAD TO CHOOSE BETWEEN CONTINUING THE WAR IN BOSNIA OR REALIZING SERB GOALS INDIRECTLY THE US AND ITS WESTERN ALLIES PLANNED TO CONSULT THIS WEEK ABOUT THE OPTION OF AIR STRIKES ON BOSNIAN SERB POSITIONS PRESIDENT CLINTON SAID FRIDAY HE IS GIVING SERIOUS CONSIDERATION TO LIMITED BOMBING OF SERB ARTILLERY SITES AND LIFTING AN EMBARGO AGAINST ARMS SHIPMENTS TO MUSLIMS MEDICAL EXAMINERS IDENTIFIED ONE BODY FOUND IN THE RUBBLE OF THE CHARRED BRANCH DAVIDIAN CULT COMPOUND OUTSIDE WACO TEXAS ON SATURDAY THE LEAD MEDICAL EXAMINER SAID GUNSHOTS KILLED A MAN AND A WOMAN AND THAT THREE OTHERS DIED OF SMOKE INHALATION AND CARBON DIOXIDE POISONING GAY MEN AND LESBIANS MARCHED IN WASHINGTON TO DEMONSTRATE FOR EQUAL RIGHTS AND AN END TO THE MILITARY'S BAN ON HOMOSEXUALS THE PARKS SERVICE ESTIMATED THE CROWD AT 300000 BUT MARCH ORGANIZERS SAID THE EVENT DREW 11 MILLION A TURNOUT THAT WOULD RIVAL THE CIVILRIGHTS AND ANTIWAR PROTESTS OF THE PAST QUARTERCENTURY ISRAEL WILL ALLOW ABOUT 30 PALESTINIAN DEPORTEES TO RETURN HOME AFTER YEARS IN EXILE AS PART OF A PACKAGE OF CONCESSIONS TO THE PALESTINIANS A SENIOR PALESTINIAN OFFICIAL SAID IN JORDAN MEANWHILE PRIME MINISTER RABIN OFFERED THE PALESTINIANS A ROLE IN DIRECTING 75 MILLION IN INVESTMENTS TOWARD THE OCCUPIED TERRITORIES ISRAELI FORCES SHELLED HILLS IN SOUTH LEBANON NEAR THE TENT CAMP OF NEARLY 400 PALESTINIAN DEPORTEES LEBANESE SECURITY SOURCES SAID THE DEPORTEES HAD VOWED TO STAGE ANOTHER MARCH TODAY TO PROTEST THE RESUMPTION OF MIDEAST TALKS TOMORROW THE PENTAGON RELEASED ITS FINAL REPORT FRIDAY ON SEXUAL ASSAULTS AT THE 1991 TAILHOOK NAVAL AVIATORS' CONVENTION THE PENTAGON'S INSPECTOR GENERAL ACCUSED 140 OFFICERS OF BEING INVOLVED IN INDECENT ASSAULTS INDECENT EXPOSURE CONDUCT UNBECOMING AN OFFICER DERELICTION IN DUTY OR MAKING FALSE STATEMENTS NATIONAL GUARDSMEN SEARCHED FOR VICTIMS OF AN OKLAHOMA TORNADO THAT KILLED AT LEAST SEVEN PEOPLE AND INJURED MORE THAN 95 AUTHORITIES SAID THE TWISTER DEMOLISHED AT LEAST 75 MOBILE HOMES 23 HOUSES AND SEVERAL BUSINESSES SATURDAY NIGHT IN CATOOSA EAST OF TULSA ACCORDING TO POLICE THE IRISH REPUBLICAN ARMY CLAIMED RESPONSIBILITY FOR A MASSIVE BOMB BLAST IN LONDON'S FINANCIAL DISTRICT THAT KILLED ONE PERSON INJURED 45 OTHERS AND CAUSED AS MUCH AS 16 BILLION IN PROPERTY DAMAGE SATURDAY'S EXPLOSION OCCURRED A SHORT DISTANCE FROM THE OFFICES OF THE EUROPEAN BANK FOR RECONSTRUCTION & DEVELOPMENT SEVEN PEOPLE WERE KILLED IN SOUTH AFRICA'S NATAL PROVINCE WHEN AFRICAN NATIONAL CONGRESS BACKERS SHOT TWO INKATHA FREEDOM PARTY MEMBERS AT A FUNERAL VIGIL FOR AN INKATHA LEADER AND MOURNERS CHASED AND KILLED FIVE OF THE ATTACKERS OFFICIALS SAID THE VIOLENCE OCCURRED A DAY BEFORE DEMOCRACY NEGOTIATORS WERE SCHEDULED TO MEET SERIOUS CRIMES IN THE US FELL BY 4 IN 1992 FOLLOWING A SHARP EIGHTYEAR UPSWING THE FBI SAID MOST OF THE TOTAL DECREASE REFLECTED A DECLINE IN CRIMES INVOLVING PROPERTY THE AGENCY SAID VIOLENT CRIMES EDGED SLIGHTLY LOWER THE BIGGEST DECREASE WAS EVIDENT IN LARGE CITIES IN THE NORTHEAST DIED CESAR CHAVEZ 66 UNITED FARM WORKERS UNION'S FOUNDER WHO LED A NATIONWIDE GRAPE BOYCOTT IN THE 1960S FRIDAY IN SAN LUIS ARIZ OLIVER TAMBO 75 LONGTIME LEADER IN EXILE OF THE AFRICAN NATIONAL CONGRESS SATURDAY IN JOHANNESBURG SOUTH AFRICA OF A STROKE 9304260174 930426 AIR METHODS EXTENDS WARRANTS DENVER AIR METHODS CORP SAID IT EXTENDED THE EXPIRATION DATE OF ITS PUBLICLY TRADED WARRANTS WHICH WERE ISSUED IN ITS INITIAL PUBLIC OFFERING IN 1987 TO JUNE 15 FROM MAY 15 THE COMPANY WHICH PROVIDES EMERGENCY AIRLIFT SERVICES AND SYSTEMS TO HOSPITALS SAID THE EXERCISE PRICE OF THE WARRANTS IS 450 A COMMON SHARE 9304260173 930426 INTERNATIONAL CHILE'S FOREIGN RESERVES RISE SANTIAGO CHILE'S FOREIGN RESERVES STOOD AT 979 BILLION AS OF APRIL 15 UP 1913 MILLION FROM THE END OF MARCH AND UP 274 BILLION FROM A YEAR EARLIER THE CENTRAL BANK REPORTED THE CURRENT LEVEL OF RESERVES IS THE HIGHEST EVER ACCORDING TO THE FIGURES ISSUED BY THE BANK 9304260172 930426 CONTROLLING STAKE IN DWG SOLD MIAMI DWG CORP SAID A LIMITED PARTNERSHIP CONTROLLED BY NELSON PELTZ AND PETER W MAY COMPLETED ACQUISITION OF A CONTROLLING INTEREST IN THE COMPANY FROM FINANCIER VICTOR POSNER MR POSNER AND HIS AFFILIATES AS PREVIOUSLY AGREED SOLD HALF OF THEIR DWG SHARES TO THE PARTNERSHIP DWG ACQUISITION GROUP LP FOR 718 MILLION AND EXCHANGED THEIR REMAINING COMMON SHARES FOR PREFERRED STOCK DWG OWNS THE ARBY'S RESTAURANT CHAIN AND OTHER INTERESTS 9304260171 930426 AMERICAN FREIGHTWAYS SPLIT HARRISON ARK AMERICAN FREIGHTWAYS CORP SAID IT WILL DECLARE A 2FOR1 STOCK SPLIT PAYABLE ON MAY 27 TO STOCK OF RECORD MAY 7 THE TRUCKING COMPANY SAID IT CURRENTLY HAS 138 MILLION COMMON SHARES OUTSTANDING 9304260170 930426 WESTERN GERMAN WAGES RISE WIESBADEN GERMANY WESTERN GERMAN UNIONSCALE HOURLY BLUECOLLAR WORKERS EARNED AN AVERAGE OF 61 MORE IN JANUARY THAN THEY DID A YEAR EARLIER THE FEDERAL STATISTICS OFFICE IN WIESBADEN REPORTED THE INDEX BASED ON 1985 EQUALING 100 ROSE TO 141 THE AGENCY ADDED UNIONSCALE WEEKLY WAGES IN JANUARY WERE UP 58 FROM A YEAR EARLIER IT SAID THE INDEX ROSE TO 1349 WHITECOLLAR WORKERS WHO ARE PAID MONTHLY SAW PAYCHECKS THAT WERE 63 LARGER IN JANUARY THAN IN JANUARY 1992 IT ADDED THE INDEX ROSE TO 1341 9304260169 930426 GOTTSCHALKS MARCH SALES FELL FRESNO CALIF GOTTSCHALKS INC SAID MARCH SALES FELL 23 TO 263 MILLION FROM 269 MILLION A YEAR EARLIER SALES AT STORES OPEN AT LEAST A YEAR SLIPPED 28 THE DEPARTMENT STORE CHAIN SAID ITS RESULTS CONTINUE TO BE HURT BY POOR ECONOMIC CONDITIONS IN CALIFORNIA FOR THE NINE WEEKS ENDED APRIL 3 GOTTSCHALKS SAID SALES DROPPED 17 TO 438 MILLION FROM 445 MILLION A YEAR EARLIER SAMESTORE SALES IN THE PERIOD DECLINED 4 9304260168 930426 HOECHST FORESEES STORMY MEETING WITH HOLDERS OPPOSITION GROUPS DEMAND BOARD ACCOUNTABILITY FOR RECENT ACCIDENTS BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL HOECHST AG IS FACING A POTENTIALLY STORMY SHAREHOLDERS MEETING TOMORROW AS PROMINENT MINORITY SHAREHOLDER GROUPS FROM BOTH GERMANY AND THE US DEMAND THAT MANAGEMENT BOARD MEMBERS BE HELD ACCOUNTABLE FOR THE SENSATIONAL SERIES OF RECENT ACCIDENTS PLAGUING EUROPE'S LARGEST CHEMICAL CONCERN GERMANY'S LARGEST AND OLDEST SHAREHOLDER GROUPING THE GERMAN ASSOCIATION FOR SHAREHOLDER PROTECTION HAS FILED A PROPOSAL RECOMMENDING THAT SHAREHOLDERS REFUSE TO APPROVE THE ACTIONS OF THE MANAGEMENT BOARD MEMBERS RESPONSIBLE FOR SAFETY ISSUES AND PUBLIC RELATIONS INSTITUTIONAL SHAREHOLDER SERVICES OF THE US A LEADING CORPORATE GOVERNANCE AND PROXY VOTING GROUP ADVISING OVER 200 INSTITUTIONAL INVESTORS IN CANADA THE UK AND THE US HAS ALSO THROWN ITS SUPPORT BEHIND THE GERMAN ASSOCIATION'S PROPOSAL NORMALLY EXONERATION OF THE MANAGEMENT BOARD IS A ROUTINE FORMALITY TO RUBBER STAMP THAT SHAREHOLDERS WERE SATISFIED THAT MANAGEMENT FULFILLED ITS DUTIES IN THE PAST YEAR HOWEVER IN LIGHT OF THE STAGGERING STRING OF 15 ACCIDENTS WITHIN THE PAST EIGHT WEEKS AT HOECHST FACTORIES AND AN UNPRECEDENTED FUMBLING OF PUBLIC RELATIONS BY THE COMPANY THE TWO SHAREHOLDER ASSOCIATIONS MAINTAIN THAT THE MANAGEMENT BOARD CLEARLY FAILED TO FULFILL ITS OBLIGATIONS LEADING TO SEVERE DAMAGE OF THE COMPANY'S INTERNATIONAL REPUTATION AND HENCE OF SHAREHOLDER VALUE IT'S NOT YET CLEAR WHAT THE COMPANY'S LIABILITY FOR THE ACCIDENTS WILL BE BUT IT IS CLEAR THAT WHATEVER IT COSTS WILL ULTIMATELY COME OUT OF THE SHAREHOLDERS POCKET SAID GEOFFREY MAZULLO ANALYST FOR INSTITUTIONAL SHAREHOLDER SERVICES IN WASHINGTON DC UNTIL THE DETAILS SURROUNDING THE ACCIDENTS AND THE QUESTION OF LIABILITY HAVE BEEN RESOLVED SHAREHOLDERS SHOULD NOT APPROVE FORMAL DISCHARGE OF THE MANAGEMENT BOARD MR MAZULLO ADDED IT IS UNLIKELY THAT THE OPPOSITION GROUPS WILL BE ABLE TO SUMMON THE ABSOLUTE MAJORITY NEEDED TO PUSH THROUGH WHAT WOULD AMOUNT TO A SYMBOLIC VOTE OF NOCONFIDENCE FOR HOECHST BOARD MEMBERS BECAUSE MAJOR SHAREHOLDERS HAVE INDICATED THEIR SUPPORT FOR THE MANAGEMENT TEAM COMMERZBANK AG AND DRESDNER BANK AG HAVE RECOMMENDED THAT THEIR CUSTOMERS VOTE THEIR SHARES IN FAVOR OF MANAGEMENT NEVERTHELESS THE OPPOSITION FROM THE TWO PROMINENT SHAREHOLDER GROUPS WHO CLEARLY EMPHASIZE THAT THEIR INTERESTS ARE ECONOMIC RATHER THAN ENVIRONMENTAL UNDERSCORES THE STAKES FOR HOECHST ARE NOT JUST ITS ENVIRONMENTAL REPUTATION BUT ITS CORPORATE CREDIBILITY DESPITE MOUNTING PUBLIC PRESSURE ON WOLFGANG HILGER CHAIRMAN OF HOECHST IS PUTTING ON A STALWART FACE DECLARING POINT BLANK THAT HE HAS NO INTENTION OF RESIGNING AND A HOECHST SPOKESMAN TRIED TO DEFEND MR HILGER BY SAYING YOU MUST REMEMBER THAT UNDER MR HILGER'S DIRECTION THE COMPANY ALSO ACHIEVED RECORD HIGH PROFITS IN 198789 DURING THE CHEMICAL INDUSTRY BOOM OFFICIALS AT BOTH THE GERMAN AND US SHAREHOLDER GROUPS UNDERSCORE THAT THEY ARE NOT TRYING TO OVERTHROW THE MANAGEMENT BUT RATHER SENSITIZE MANAGEMENT TO BE MORE RESPONSIVE TO SHAREHOLDER INTERESTS THE CONCEPT OF SHAREHOLDER VALUE IS STILL MAKING ONLY SLOW HEADWAY IN GERMANY THAT MAKES THE FIRSTTIME COLLABORATION OF INSTITUTIONAL SHAREHOLDER SERVICES WITH THE GERMAN SHAREHOLDER ASSOCIATION ALL THE MORE SIGNIFICANT AS A SIGNAL OF HOECHST BEING PUSHED TOWARD A MORE OPEN MANAGEMENT STYLE FRIDAY IN AN APPARENT ATTEMPT TO BACK PEDAL AFTER EIGHT WEEKS OF INADEQUATE PUBLIC INFORMATION POLICIES HOECHST RAN FULLPAGE ADS IN SEVERAL MAJOR GERMAN NEWSPAPERS OUTLINING THE 10POINT PROGRAM OF SECURITY IMPROVEMENTS AND OFFERING A TOLLFREE INFORMATION SERVICE ABOUT ITS SECURITY PROGRAM NEVERTHELESS THE COMPANY STOOD BY ITS POSITION THAT THE SERIES OF ACCIDENTS HAVE BEEN UNLUCKY COINCIDENCE NOT A FAILURE ON THE COMPANY'S PART DESPITE AN ADEQUATE SECURITY SYSTEM THINGS HAPPEN AND SOMETIMES ALL AT ONCE FRIDAY'S ADVERTISEMENT READ TOMORROW THE COMPANY ALSO HAS TO GET SHAREHOLDER APPROVAL FOR A PREVIOUSLY ANNOUNCED PROPOSAL TO CUT THE DIVIDEND 25 TO NINE MARKS 563 A SHARE FROM 12 MARKS A SHARE 9304260167 930426 LG&E RULING IS OVERTURNED LOUISVILLE KY LG&E ENERGY CORP SAID THE KENTUCKY COURT OF APPEALS OVERTURNED A LOWER COURT'S ORDER FOR THE UTILITY TO REFUND 150 MILLION TO CUSTOMERS THE APPEALS COURT'S DECISION RELATES TO A 1989 RULING BY THE FRANKLIN CIRCUIT COURT THAT A RATE SETTLEMENT BETWEEN LG&E'S LOUISVILLE GAS & ELECTRIC CO UNIT AND THE KENTUCKY PUBLIC SERVICE COMMISSION IMPROPERLY EXCLUDED CUSTOMERS THE LOWER COURT ALSO SAID CUSTOMERS WERE ENTITLED TO REBATES FROM LG&E'S SALE OF PART OF ITS TRIMBLE COUNTY ELECTRICAL PLANT BUT THE APPEALS COURT RULED THAT THE LOWER COURT IMPROPERLY SET UTILITY RATES BY ORDERING THE REFUNDS LG&E SAID THE APPEALS COURT'S DECISION RETURNS THE MATTER TO THE PUBLIC SERVICE COMMISSION 9304260166 930426 HYCOR BIOMEDICAL BUYBACK GARDEN GROVE CALIF HYCOR BIOMEDICAL INC SAID ITS BOARD AUTHORIZED THE PURCHASE OF UP TO 5 OF HYCOR'S COMMON SHARES OUTSTANDING THE BIOTECHNOLOGY COMPANY SAID THE BUYBACKS WOULD BE MADE FROM TIME TO TIME THROUGH OPEN MARKET PURCHASES WE HAVE AUTHORIZED THESE REPURCHASES BECAUSE THE BOARD OF DIRECTORS AND SENIOR MANAGEMENT OF THE COMPANY ARE HIGHLY CONFIDENT ABOUT HYCOR'S LONGTERM PROSPECTS RICHARD D HAMILL CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID AS OF APRIL 14 HYCOR HAD 8250000 COMMON SHARES OUTSTANDING 9304260165 930426 INTERNATIONAL GREECE SEES INFLATION RATE FALL MILAN GREECE'S INFLATION RATE IS EXPECTED TO EASE SLIGHTLY TO ABOUT 16 IN APRIL FROM 164 IN MARCH AND REMAIN STEADY IN MAY DEPUTY FINANCE MINISTER PETER DOUKAS SAID WE EXPECT INFLATION TO GO TO BETWEEN 159 AND 16 IN APRIL AND STAY THERE IN MAY THERE WILL BE SMALL DECREASES EVERY MONTH AFTER THAT WITH A MAJOR DIP IN SEPTEMBER MR DOUKAS SAID IN A TELEPHONE INTERVIEW FROM HIS OFFICE IN ATHENS THE APRIL INFLATION RATE WHILE DOWN FROM MARCH'S RATE WOULD STILL BE UP FROM THE 145 YEARTOYEAR INFLATION RATE RECORDED IN BOTH IN FEBRUARY AND JANUARY 9304260164 930426 CALGENE MONSANTO SIGN PACTS DAVIS CALIF CALGENE INC SAID IT SIGNED SEVERAL CROSSLICENSING AGREEMENTS WITH ST LOUISBASED MONSANTO CO UNDER THE AGREEMENT CALGENE RECEIVED LICENSES TO CERTAIN MONSANTO PATENTS INCLUDING ONES COVERING THE AREA OF PLANTTRANSFORMATION TECHNOLOGIES AND THE RIGHT TO OBTAIN CERTAIN LICENSES TO INSECT RESISTANTTECHNOLOGY FOR USE IN COTTON MONSANTO RECEIVED LICENSES TO CALGENE'S PATENTS AND PATENTS PENDING IN CERTAIN GENETICALLY ENGINEERED PLANTS AND OTHER TECHNOLOGIES CALGENE AN AGRICULTURAL BIOTECHNOLOGY CONCERN SAID THE AGREEMENT RESOLVES SEVERAL CURRENT AND POTENTIAL PATENT CONFLICTS BETWEEN THE TWO COMPANIES 9304260163 930426 HOWELL CORP SELLS PREFERRED HOUSTON HOWELL CORP SAID IT COMPLETED AN OFFERING OF 690000 PREFERRED SHARES FOR ABOUT 328 MILLION THE OIL AND NATURALGAS COMPANY SAID THE 690000SHARE OFFERING EXCEEDED BY 15 THE TOTAL ANNOUNCED EARLIER THIS MONTH PROCEEDS WILL BE USED TO ACCELERATE DRILLING FOR ENERGY RESERVES TO PAY BANK DEBT AND FOR GENERAL CORPORATE PURPOSES 9304260162 930426 JIMBO'S JUMBOS TO BE SOLD EDENTON NC JIMBO'S JUMBOS INC SAID IT AGREED TO BE ACQUIRED BY A PARTNERSHIP CONTROLLED BY BILLIONAIRE JOHN W KLUGE THE PRICE FOR THE PEANUT MANUFACTURER IS 693 A SHARE SLIGHTLY REDUCED FROM THE 7 ORIGINALLY AGREED UPON MAKING THE TRANSACTION VALUED AT ABOUT 33 MILLION JIMBO'S JUMBOS IS 73 OWNED BY CHOCK FULL O'NUTS CORP THE AGREEMENT WITH MR KLUGE IS SUBJECT TO COMPLETION OF ENVIRONMENTAL REPORTS AND SEVERAL OTHER CONDITIONS ACCORDING TO ROBERT S THOMAS PRESIDENT OF JIMBO'S JUMBOS WHO SAID HE WILL REMAIN PRESIDENT 9304260161 930426 FRENCH GOODS CONSUMPTION SLIPS PARIS HOUSEHOLD CONSUMPTION OF MANUFACTURED GOODS IN FRANCE FELL A SEASONALLY ADJUSTED 19 IN MARCH TO ITS LOWEST LEVEL IN 12 MONTHS THE NATIONAL STATISTICS INSTITUTE SAID CONSUMPTION OF CONSUMER DURABLES DECLINED 03 IN MARCH AFTER RISING IN FEBRUARY UNDER THE INFLUENCE OF A 278 SURGE IN CAR PURCHASES THAT FOLLOWED A SLUMP IN JANUARY CAR REGISTRATIONS ROSE ONLY 28 IN MARCH BUT CONSUMPTION OF OTHER DURABLES DECLINED 19 WITH A RISE IN PURCHASES OF HOUSEHOLD ELECTRICAL EQUIPMENT BEING MORE THAN OFFSET BY A DROP IN SALES OF FURNITURE AND CONSUMER ELECTRONIC GOODS THE STATERUN DATAGATHERING INSTITUTE SAID THAT EXPRESSED IN TERMS OF 1980 FRANCS HOUSEHOLD CONSUMPTION OF MANUFACTURED GOODS DROPPED TO 5555 BILLION FRANCS 1029 BILLION IN MARCH FROM 5562 BILLION IN FEBRUARY AND 5578 BILLION IN JANUARY THE FIGURES ARE PART OF A NEW STATISTICAL SERIES 9304260160 930426 ACC CORP EARNINGS FORECAST ROCHESTER NY ACC CORP SAID IT EXPECTS THAT FIRSTQUARTER EARNINGS WILL MEET OR EXCEED THE 354194 OR EIGHT CENTS A SHARE THAT IT EARNED IN THE YEAREARLIER QUARTER OFFICIALS OF THE LONGDISTANCE TELEPHONE COMPANY WERE UNAVAILABLE FOR ELABORATION ACC EXPECTS TO REPORT ITS EARNINGS BY MAY 4 9304260159 930426 NIKON LOWERS FORECAST FOR YEAR TOKYO NIKON CORP A JAPANESE PRECISION MACHINERY MAKER ANNOUNCED A DOWNWARD REVISION OF ITS CONSOLIDATED BUSINESS FORECASTS FOR THE FISCAL YEAR ENDED MARCH 1993 CITING WEAK GLOBAL ECONOMIC CONDITIONS THE COMPANY NOW FORECASTS A PRETAX LOSS OF 96 BILLION 873 MILLION COMPARED WITH A PREVIOUS PROJECTION OF A LOSS OF 3 BILLION THE COMPANY ALSO SAID IT HAD VALUATION LOSSES OF 187 BILLION YEN ON ITS SECURITIES HOLDINGS AT THE END OF THE LATEST FISCAL YEAR 9304260158 930426 CHINA LIGHT & POWER NET RISES HONG KONG CHINA LIGHT & POWER CO SAID PROFIT FOR THE FIRST HALF ENDED MARCH 31 ROSE 11 TO 173 BILLION HONG KONG DOLLARS US2238 MILLION FROM 155 BILLION HONG KONG DOLLARS A YEAR EARLIER THE EARNINGS FIGURES WERE ARRIVED AT AFTER TRANSFERS UNDER THE HONG KONG GOVERNMENT'S SCHEME OF CONTROL REGULATING THE UTILITY COMPANY'S PROFIT GROWTH REVENUE INCREASED TO HK636 BILLION UP 14 FROM HK560 BILLION 9304260157 930426 WHO'S NEWS ELECTROSOURCE INC ELECTROSOURCE INC AUSTIN TEXAS JOHN H AKIN 49 YEARS OLD A PRINCIPAL IN THE AUSTIN LAW FIRM PEARCE SMITH & AKIN WAS NAMED TO THE BOARD OF THE MAKER OF COMMERCIAL LEADACID BATTERIES INCREASING THE BOARD'S SIZE TO SEVEN 9304260156 930426 DAEWOO UNIT TO FLOAT BONDS SEOUL SOUTH KOREA'S DAEWOO ELECTRONICS CO A SUBSIDIARY OF DAEWOO GROUP WILL FLOAT 70 MILLION OF CONVERTIBLE BONDS IN LONDON EARLY NEXT MONTH A COMPANY OFFICIAL SAID PROCEEDS WILL BE USED TO OPEN THE COMPANY'S INCORPORATED UNITS OVERSEAS THE BONDS WILL MATURE BY THE END OF 2008 WITH COUPON RATES RANGING FROM 3 TO 325 9304260155 930426 WHO'S NEWS COMPAQ COMPUTER CORP COMPAQ COMPUTER CORP HOUSTON PETER N LARSON WAS ADDED TO THE BOARD OF THIS COMPUTER MAKER INCREASING ITS SIZE TO SEVEN MEMBERS MR LARSON 53 YEARS OLD IS CHAIRMAN OF JOHNSON & JOHNSON'S CONSUMER PRODUCTS BUSINESS 9304260154 930426 US SURGICAL NAMED IN LAWSUITS NORWICH CONN SEVERAL SHAREHOLDERS FILED SUIT AGAINST US SURGICAL CORP CLAIMING THAT THE COMPANY WITHHELD NEGATIVE INFORMATION PRIOR TO THE RECENT FALL IN THE COMPANY'S STOCK PRICE THE SUITS FILED IN FEDERAL COURT IN THE CONNECTICUT CITIES OF BRIDGEPORT NEW HAVEN AND HARTFORD SEEK CLASSACTION STATUS FOR INVESTORS WHO MADE US SURGICAL STOCK PURCHASES BETWEEN MAY 9 1991 AND APRIL 7 1993 SHARES OF US SURGICAL WITH A 52WEEK HIGH OF 11575 CLOSED ON FRIDAY AT 2975 DOWN 25 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING US SURGICAL SAID IN A STATEMENT THAT THESE LAWSUITS WHICH WERE NOTED IN THE COMPANY'S RECENT 10Q FILING ARE SPURIOUS AND WITHOUT MERIT 9304260153 930426 WHO'S NEWS DETREX CORP DETREX CORP SOUTHFIELD MICH ARBIE R THALACKER A BOARD MEMBER SINCE 1981 WAS ELECTED CHAIRMAN OF THIS SPECIALTY CHEMICAL AND EQUIPMENT MANUFACTURER MR THALACKER AN OUTSIDE DIRECTOR WHO IS A PARTNER AT SHEARMAN & STERLING SUCCEEDS LOUIS SLOSSBERG WHO STEPPED DOWN FOR PERSONAL REASONS 9304260152 930426 SKYWEST DELTA TO BUY AIRCRAFT ST GEORGE UTAH SKYWEST DELTA CONNECTION SAID IT SIGNED AN AGREEMENT WITH EMBRAER AIRCRAFT CORP TO PURCHASE 20 EMB120 BRASILIA AIRCRAFT AND ACQUIRED OPTIONS ON AN ADDITIONAL 20 PLANES TERMS WEREN'T DISCLOSED THE AIRLINE CONCERN SAID DELIVERIES OF THE NEW PLANES WOULD BEGIN IN JUNE AND CONTINUE UNTIL 1997 THE COMPANY CURRENTLY OPERATES 19 BRASILIA PLANES 9304260151 930402 FRANCE'S SAINTGOBAIN SAYS IT EXPECTS DROP IN NET PROFIT FOR 1993 SPECIAL TO THE WALL STREET JOURNAL PARIS CIE DE SAINTGOBAIN A FRENCH GLASS AND CONSTRUCTION MATERIALS COMPANY SAID A DROP IN SALES VOLUMES COMPOUNDED BY WEAKER PRICES WILL AUTOMATICALLY PRODUCE A FURTHER DROP IN NET PROFIT IN 1993 IN A PRESENTATION TO FINANCIAL ANALYSTS CHAIRMAN JEANLOUIS BEFFA WOULDN'T ESTIMATE THE EXTENT OF THE DECLINE SAINTGOBAIN PREVIOUSLY REPORTED THAT 1992 CONSOLIDATED PROFIT DROPPED 53 TO 238 BILLION FRANCS 4359 MILLION REVENUE DROPPED 14 TO 74 BILLION FRANCS THE FIRST HALF OF 1993 IS GOING TO BE VERY DIFFICULT AS INDICATED BY VERY BAD RESULTS IN THE FIRST TWO MONTHS OF THE YEAR MR BEFFA SAID THE DIFFERENCE BETWEEN 1992 AND 1993 HE SAID IS THAT LAST YEAR'S PRICE PRESSURE HAS BEEN COMPOUNDED BY A COLLAPSE IN DEMAND THAT ISN'T LIKELY TO RECOVER UNTIL SOME TIME IN 1994 MR BEFFA SAID THAT HIS COMPANY HAS ALREADY TAKEN MAJOR STEPS TO INSULATE ITSELF FROM THE VAGARIES OF ECONOMIC CYCLES AND HAS MODERNIZED ITS FACILITIES SUBSTANTIALLY WE HAVE COMPETITIVE UNITS BUT THERE'S NO DEMAND DEMAND IS SLIPPING AWAY FROM US IN A BIG WAY HE ADDED SAINTGOBAIN INTENDS TO CONTINUE CHIPPING AWAY AT ITS NET DEBTTOEQUITY RATIO EVEN AT THE POSSIBLE EXPENSE OF SOME OF ITS CASH FLOW DESPITE STRICT CONTROL OVER STAFF AND EXPENSES AND DEBT REDUCTION MR BEFFA SAID THE COMPANY WAS STILL PREPARED TO MAKE CERTAIN INVESTMENTS TO DEVELOP ITS ACTIVITIES IN EASTERN EUROPE AND ASIA HE SAID THAT IF THE COMPANY HAD A BIGGER PRESENCE IN ASIA NOW IT WOULD HAVE BEEN SOMEWHAT INSULATED FROM THE ECONOMIC CRISIS IN EUROPE MR BEFFA SAID THAT THE ONLY AREA THAT HE IS OPTIMISTIC ABOUT IN EUROPE IS THE CONSTRUCTION BUSINESS IN GERMANY ESPECIALLY IN THE EASTERN HALF IN THE AUTO SECTOR FOR WHICH SAINTGOBAIN SUPPLIES WINDSHIELDS AND OTHER GLASS COMPONENTS THERE WAS A SHARP DROP IN VOLUME MR BEFFA SAID 9304260150 930426 EASTERN EUROPEANS ARE EAGER TO READ ANYTHING FRENCH EXPORTED LEFTOVERS SELL BRISKLY TO ROMANIANS BULGARIANS BOOKSELLER BUILDS MARKET BY JULIA LICHTBLAU SPECIAL TO THE WALL STREET JOURNAL PARIS IN OCTOBER 1990 FRENCH ENTREPRENEUR BERNARD ESTABLIE ARRIVED IN BUCHAREST WITH A TRUCKLOAD OF THREEWEEKOLD FRENCH MAGAZINES AND THE CONVICTION THAT INFORMATION WAS NEEDED AS MUCH AS MONEY TO REBUILD EASTERN EUROPE WE PUT THE MAGAZINES IN A BOOKSTORE AND WE HAD A LINE IN FRONT OF THE STORE SAID MR ESTABLIE'S ROMANIAN PARTNER MIRCEA NEDELCIU WE HAD 60000 COPIES AND IN TWO WEEKS WE HAD SOLD ALMOST EVERYTHING MR ESTABLIE SOON HAD TWO TRUCKS A MONTH CARRYING REMAINDERS UNSOLD OR UNWANTED COPIES OF FRENCH BOOKS AND MAGAZINES FROM PARIS TO A COUNTRY WHERE UNTIL RECENTLY FOREIGN BOOKS HAD TO BE SMUGGLED IN UNDER COATS LAST YEAR HIS OPERATION DJRLIVRES DE FRANCE SHIPPED 250000 BOOKS AND MORE THAN ONE MILLION MAGAZINES TO 49 STORES IN ROMANIA AND FIVE STORES IN BULGARIA IT PLANS TO EXTEND BUSINESS TO OTHER EASTERN EUROPEAN COUNTRIES AND HAS MADE A TRIAL DELIVERY TO UKRAINE MR ESTABLIE ALSO IS DISCUSSING PRINTING BOOKS LOCALLY WITH EDITIONS LAROUSSE SA AND OTHER PUBLISHERS THE 1989 REVOLUTION FREED MILLIONS OF INFORMATIONHUNGRY EASTERN EUROPEANS TO READ WESTERN PUBLICATIONS FOR THE FIRST TIME IN 40 YEARS BUT NOW FEW CAN AFFORD SUCH EXPENSIVE WESTERN PRODUCTS OR EVEN FIND THEM BECAUSE MUCH OF THE PREVIOUS PUBLICATION DISTRIBUTION SYSTEM COLLAPSED WITH THE OLD GOVERNMENTS WITH KNOWLEDGE OF FOREIGN LANGUAGES WIDESPREAD A LOT OF PUBLISHERS ARE THINKING ABOUT STARTING THERE SAID ONE FRENCH PUBLISHING EXECUTIVE BUT THERE'S NO STRUCTURE GALLOPING INFLATION AND NO RELIABLE PRINTERS MR ESTABLIE SAID THAT BECAUSE THE AVERAGE MONTHLY SALARY IN EASTERN EUROPEAN COUNTRIES IS ABOUT 300 FRENCH FRANCS 55 IT'S OUT OF THE QUESTION TO TRY AND SELL A BOOK FOR 100 TO 150 FRANCS OR A MAGAZINE FOR 30 FRANCS YOU HAVE TO SELL A BOOK FOR LESS THAN 10 OF THE NORMAL PRICE THE DAUNTING ECONOMICS DEFIED A CONVENTIONAL BUSINESS APPROACH SO MR ESTABLIE CREATED A NONPROFIT ORGANIZATION GRANTS FROM THE FRENCH GOVERNMENT THE EUROPEAN COMMUNITY AND PRIVATE FOUNDATIONS PAY ADMINISTRATIVE COSTS IN FRANCE LEAVING BOOK SALES TO COVER LOCAL OPERATING COSTS THE BOOKS AND MAGAZINES MOSTLY ARE REMAINDERS DONATED BY PUBLISHERS OR BOUGHT FOR NEGLIGIBLE COST MR ESTABLIE SAID HE ISN'T WORRIED THAT DJR ISN'T SELFSUFFICIENT BECAUSE HIS FIRST CONCERN IS BUILDING A DISTRIBUTION SYSTEM DJR'S SUBSIDIARIES IN ROMANIA AND BULGARIA ARE PROFITMAKING COMPANIES WHOSE SMALL GAINS ARE REINVESTED THEIR OPERATIONS ARE SEPARATE FROM THE FRENCH PARENT TO AVOID CURRENCYCONVERSION PROBLEMS MR ESTABLIE ADOPTED THE PROJECT ALMOST ON A WHIM A FRIEND VISITING ROMANIA AS A TOURIST IN THE HEADY DAYS AFTER THE 1989 REVOLUTION RASHLY PROMISED IN AN IMPROMPTU TELEVISION INTERVIEW THAT HE WOULD GET FRENCH MAGAZINE SUBSCRIPTIONS FOR ROMANIANS THE OFFER TOUCHED A CHORD INSPIRING HUNDREDS OF GRATEFUL LETTERS SO MR ESTABLIE WHOSE FREELANCE CONSULTING BUSINESS WAS IN A SLUMP TOOK ON THE PROMISE HIMSELF HE FOUND MAGAZINE PUBLISHERS TO DONATE REMAINDERS AND PERSUADED THE FRENCH FOREIGN MINISTRY TO GIVE HIM A GRANT OF 100000 FRANCS IN ROMANIA HE MET MR NEDELCIU A WRITER WHO BECAME HIS PARTNER A BRIEF ATTEMPT TO RELY ON THE REMAINING STATE BOOKSTORES FAILED WE HAD TO CREATE OUR OWN STRUCTURES SAID MR ESTABLIE THEY BOUGHT WAREHOUSES IN BUCHAREST AND SOFIA AS WELL AS A TRUCK AND A VAN AND BECAME DISTRIBUTORS THEMSELVES EVERY TWO WEEKS MR NEDELCIU AND KALIN KANTCHEV THE BULGARIAN PARTNER DISPATCH TRUCKS TO DJR'S PARIS WAREHOUSE FOR BOOKS CUSTOMERS WANT LANGUAGE AND TECHNICAL TEXTBOOKS PRACTICAL GUIDES AND MAGAZINES THAT DON'T GO STALE MR NEDELCIU SAID BUT WITH THE ODD LOTS THAT DJR GETS FROM PUBLISHERS THEY HAVE TO TAKE WHAT WE SEND THEM MR ESTABLIE HAS PERSUADED PUBLISHERS LAROUSSE EDITIONS HATIER SA CLE INTERNATIONAL SA BAYARD PRESSE AND GROUPE EXPANSION AMONG OTHERS TO SUPPLY HIM ONE REASON THEY DO SAID ONE FRENCH INDUSTRY EXECUTIVE IS FEAR THAT FOREIGN COMPETITORS WILL GET TO THIS POTENTIAL MARKET FIRST IN ROMANIA THE FRENCH LANGUAGE IS WIDESPREAD HE SAID BUT NOW ENGLISH IS GOUGING AWAY THE MARKET STILL THE HYBRID OF CAPITALISM AND CULTURAL PROMOTION HAS CRITICS EVEN AMONG MR ESTABLIE'S SUPPLIERS WHO KNOW HE'S PIONEERING THE MARKET FOR THEM BUT FEAR HIM AS LOWCOST COMPETITION HIS METHODS ARE NEW AND ORIGINAL BUT THEY CAN BE DANGEROUS SAID AN OFFICIAL OF EDITIONS HATIER THERE CAN'T BE ANY CONFLICT BETWEEN WHAT HE DOES AND OUR MARKETING POLICIES THE TEXTBOOK SPECIALIST IS MR ESTABLIE'S MAIN SUPPLIER AND IS EYEING THE FRENCHASAFOREIGN LANGUAGE MARKET IN ROMANIA MR ESTABLIE HAS AGREED NOT TO SELL THESE HATIER BOOKS HE SAID BUT MR ESTABLIE ISN'T WORRIED YET THAT THE BIG BOYS WILL ELBOW HIM OUT AFTER HE DOES ALL THE DIRTY WORK EITHER THEY TRY TO PUSH US OUT AND FAIL OR THEY TRY AND SUCCEED OR THEY DECIDE TO BUY US OUT AND TWO OF THOSE OPTIONS AREN'T SO BAD HE SAID 9304260149 930406 WHO'S NEWS HORN & HARDART CO HORN & HARDART CO WEEHAWKEN NJ TED PAMPERIN 52 YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF EXECUTIVE VICE PRESIDENT OF HANOVER DIRECT INC A CATALOG DIRECT MARKETER AND HORN & HARDART'S PRINCIPAL UNIT MR PAMPERIN FORMERLY WAS CHIEF EXECUTIVE OFFICER OF TWEEDS INC EDGEWATER NJ AND HE'S A COFOUNDER OF THE TWEEDS CATALOG 9304260148 930426 TECHNOLOGY INFORMATION AGE PCS START SWEEPING AWAY BUSINESS FORMS BY WILLAIM M BULKELEY COMPUTERS ARE FINALLY STARTING TO BEND FOLD SPINDLE AND MUTILATE THE PAPERFORMS BUSINESS AFTER YEARS OF FECKLESS EFFORT TO REDUCE THE FLOW OF PAPER SOME BIG ORGANIZATIONS ARE CONCLUDING THAT GETTING RID OF FORMS MAY BE ONE OF THE MOST PRODUCTIVE THINGS THEY CAN DO WITH THEIR EXPENSIVE COMPUTERNETWORK SYSTEMS INSTEAD OF STUFFING FILING CABINETS WITH FORMS FOR EXPENSE ACCOUNTS PURCHASE ORDERS AND RECEIPTS THEY'RE STORING THEM ON COMPUTER DISKS WHEN YOU GET TO THE IDEA OF AN ELECTRONIC FORM YOU'RE TALKING ABOUT A COMPLETELY DIFFERENT OFFICE ENVIRONMENT SAYS AMY WOHL AN OFFICEAUTOMATION CONSULTANT IN BALA CYNWYD PA BECAUSE OF THE REDUCED HUMAN EFFORT TIME SAVED IN PROCESSING AND INCREASED ACCURACY IT OFFERS A DISTINCT COMPETITIVE ADVANTAGE FORMS SOFTWARE HAS BEEN AROUND FOR YEARS BUT IN EARLY VERSIONS PEOPLE DESIGNED FORMS ON THEIR COMPUTERS THEN PRINTED THEM OUT AND MADE COPIES SO OTHER PEOPLE COULD FILL THEM OUT ON TYPEWRITERS AS MORE PEOPLE GOT ACCESS TO HIGHQUALITY LASER PRINTERS SOME COMPANIES DISTRIBUTED ELECTRONIC TEMPLATES OF CERTAIN FORMS SO PEOPLE COULD FILL THEM OUT ON THEIR OWN COMPUTERS AND THEN PRINT THEM OUT MANY PEOPLE USE THE TAXPREPARATION PROGRAMS THAT PRODUCE AND FILL OUT INTERNAL REVENUE SERVICE FORMS IN THAT WAY NOW THE COMPANY NETWORKS SET UP FOR ELECTRONIC MAIL ARE MAKING POSSIBLE THE NEXT STEP ELECTRONIC FORMS THAT CAN BE FILLED OUT AND SENT TO ANOTHER DEPARTMENT BY EMAIL WITHOUT EVER BEING PRINTED OUT BUT DON'T EXPECT PEOPLE TO STOP MAKING PAPER COPIES JUST YET TWO OF THE LEADERS IN THE ELECTRONICFORMS MARKET JETFORM CORP IN OTTAWA AND DELRINA TECHNOLOGY INC IN TORONTO STRESS THEIR ABILITY TO HELP USERS SEND FORMS OVER NETWORKS AND STORE FORMS ON CENTRAL SERVERS WHERE USERS CAN EASILY GET THEM LOTUS DEVELOPMENT CORP INCLUDES FORMS DESIGN AND COMMUNICATION IN NOTES ITS POPULAR GROUPWARE PRODUCT AND MICROSOFT CORP UNVEILED FORMS SOFTWARE LAST WEEK THAT WORKS WITH ITS MICROSOFT MAIL EMAIL PRODUCT THE FORMS MARKET WILL GROW INCREDIBLY FAST BECAUSE IT'S SO EASY TO DO ONCE YOU HAVE THE MAIL INFRASTRUCTURE INSTALLED SAYS DANIEL PETRE VICE PRESIDENT OF MICROSOFT'S WORKGROUP DIVISION WHY SHOULD COMPANIES CARE ORGANIZATIONS SPEND 6 BILLION A YEAR ON PREPRINTED FORMS THE NATIONAL BUSINESS FORMS ASSOCIATION CLAIMS 83 OF ALL BUSINESS DOCUMENTS ARE FORMS BUT ONETHIRD OF ALL FORMS ARE THROWN AWAY BEFORE THEY'RE USED USUALLY WHEN THEY BECOME OBSOLETE AFTER IMPORTANT INFORMATION CHANGES SUCH AS THE IRS'S CARMILEAGE ALLOWANCE ON EXPENSE FORMS THE SPREAD OF COMPUTERS HAS ALREADY CUT INTO THE USE OF PAPER FORMS SOME ANALYSTS SAY MERILYN DUNN OF MARKET RESEARCHER BIS STRATEGIC DECISIONS NORWELL MASS SAYS THAT THE LUCRATIVE MULTIPART FORMS BUSINESS PEAKED IN 1990 AND IS NOW SHRINKING AT ABOUT 9 A YEAR BECAUSE PEOPLE PREFER TO PROCESS FORMS WITH COMPUTERDRIVEN PRINTERS THAT CAN'T HANDLE MULTIPART PAPER THERE'S STILL DEMAND FOR PAPER FORMS IN THE CUTSHEET MARKET SHE SAYS SOME BUSINESSFORMS MAKERS SEE THE HANDWRITING ON THE WALL I'M TAKING OUR COMPANY OUT OF THE MAINLINE BUSINESS FORMS MARKET WHICH I SEE MATURING SAYS KENNETH E OVERSTREET EXECUTIVE VICE PRESIDENT OF NORTHSTAR COMPUTER FORMS INC IN MINNEAPOLIS NORTHSTAR'S NEW NICHE IS PRINTING BANK DOCUMENTS WITH SPECIAL CODES ON THEM THE BENEFITS OF GOING ELECTRONIC SHOW UP AT CIGNA CORP THE BIG PHILADELPHIABASED INSURER CIGNA WHICH HAS ABOUT 30000 EMPLOYEES WITH PCS CONNECTED TO NETWORKS IS TRYING TO REPLACE AN ESTIMATED 35000 CORPORATE FORMS WITH ELECTRONIC FORMS STARTING WITH 20 WIDELY USED INTERNAL FORMS SUCH AS EXPENSE ACCOUNTS AND REQUESTS FOR TRAINING CLASSES THE COMPANY EXPECTS TO PAY FOR THE PROJECT IN REDUCED PAPER COSTS IN THE FIRST YEAR BUT THE BENEFITS GO MUCH FURTHER THE GOAL IS TO ELIMINATE THE PAPER FLOW SAYS EDWARD F DRISCOLL ASSISTANT VICE PRESIDENT WITH ELECTRONIC FORMS CIGNA DOESN'T HAVE TO KEEP BRANCHOFFICE SHELVES FULL OF FORMS OFTEN OUTDATED MARK ORTHNER WHO WORKED ON THE PROJECT SAYS FORMS' OBSOLESCENCE IS A BIG PROBLEM AT OUR COMPANY WE ESTIMATE WE HAVE A 30 TO 35 OBSOLESCENCE RATE BUT PEOPLE USE FORMS THAT ARE 10 YEARS OLD WHEN THEY USE COMPUTERIZED FORMS THE PERSON IN CHARGE OF THE FORM ONLY HAS TO CHANGE IT ONCE IN A CENTRAL COMPUTER FOR EXAMPLE EVERY YEAR WHEN THE IRS CHANGES THE MILEAGE ALLOWANCE AND NO EMPLOYEE WASTES AN HOUR FILLING OUT AN OBSOLETE FORM ONLY TO HAVE IT SENT BACK ON CIGNA'S AUTOMATED ELECTRONIC FORMS THE COMPUTER PERFORMS CALCULATIONS DUTIFULLY ADDING UP TOTALS VERTICALLY AND HORIZONTALLY IF REQUIRED ON SOME FORMS IF A SALESMAN FILLS IN AN ACCOUNT NUMBER THE COMPUTER AUTOMATICALLY FILLS IN NAME ADDRESS PHONE NUMBER AND EVEN CALCULATES SPECIAL DISCOUNTS WHEN A PRODUCT NUMBER IS TYPED THE COMPUTER FILLS IN THE NAME AUDITORS DON'T HAVE TO WORRY ABOUT MATHEMATICAL ERRORS AND EMPLOYEES DON'T HAVE TO FILL OUT FORMS AGAIN MR DRISCOLL PREDICTS THE BENEFITS WILL MUSHROOM A FORM IS USUALLY A VERY GOOD DESCRIPTOR OF THE WAY A BUSINESS WORKS SAYS MR DRISCOLL THIS GIVES US ENTREE TO LOOK AT THE WAY WE PROCESS PAPER MAYBE WE'LL SAY YOU DON'T NEED THIS FORM BECAUSE ELECTRONIC FORMS CAN BE CHANGED SO EASILY THEY AREN'T THE IMPEDIMENT TO INNOVATING AND EXPERIMENTING THAT PRINTED PAPER FORMS CAN BE NOW PUTTING IT ON A FORM ISN'T THE CRITICAL PATH YOU CAN DO A MAJOR FORMS REDESIGN IN A DAY PAPER ELONGATES THE IMPACT OF CHANGE HE SAYS ONCE AN EMPLOYEE HAS COMPLETED A FORM AT CIGNA HE OR SHE CAN SEND IT TO THE NEXT PERSON OR DEPARTMENT BY TYPING IN AN EMAIL ADDRESS ELIMINATING THE WAIT FOR THE OFFICE MAIL CART STILL MR DRISCOLL DOESN'T HAVE ANY ILLUSIONS ABOUT CONVERTING PEOPLE TO ELECTRONIC FORMS OVERNIGHT CIGNA CHOSE JETFORM'S PACKAGE IN PART BECAUSE IT CREATES SCREENS THAT LOOKED VERY MUCH LIKE THE PAPER FORMS PEOPLE WERE USED TO PEOPLE ARE IN LOVE WITH PAPER HE SAYS WE WANTED TO GIVE PEOPLE SOMETHING FOR THEIR RECORDS THEY COULD HAVE AND HOLD 9304260147 930426 PSI RESOURCES URGES SHAREHOLDERS TO REJECT IPALCO'S HOSTILE OFFER PLAINFIELD IND PSI RESOURCES INC'S BOARD AS EXPECTED URGED PSI STOCKHOLDERS TO REJECT THE 2650 A SHARE OR 15 BILLION HOSTILE TENDER OFFER LAUNCHED LAST WEEK BY IPALCO ENTERPRISES INC IPALCO IS THE PARENT OF INDIANAPOLIS POWER & LIGHT CO PSI IS THE HOLDING COMPANY FOR PSI ENERGY THE STATE'S LARGEST UTILITY PSI RESOURCES AND CINCINNATI GAS & ELECTRIC CO AGREED IN DECEMBER TO MERGE AND FORM A NEW COMPANY TO BE KNOWN AS CINERGY PSI'S HOLDERS HAVEN'T YET VOTED ON THAT PROPOSED LINK IPALCO THEN ANNOUNCED IN MARCH THAT IT PLANNED TO MAKE A RIVAL STOCKANDCASH OFFER BUT THE TENDER OFFER COULDN'T OFFICIALLY GET UNDER WAY UNTIL LAST WEEK WHEN THE SECURITIES AND EXCHANGE COMMISSION DECLARED IPALCO'S REGISTRATION STATEMENT EFFECTIVE PSI SAID THE CINERGY STRATEGIC ALLIANCE ALIGNS THE INTERESTS OF SHAREHOLDERS AND CUSTOMERS ITS BOARD CONSIDERED VARIOUS FACTORS INCLUDING THE DECEPTIVE AND MISLEADING NATURE OF THE IPALCO HOSTILE BID WITH ITS OVERSTATEMENT OF BENEFITS AND COST SAVINGS AND THE ADVICE OF INDEPENDENT REGULATORY ADVISERS WHO CONSIDER IT HIGHLY UNLIKELY THAT IPALCO WILL GET THE REGULATORY TREATMENT IT HOPES TO OBTAIN REGARDING THE BUYOUT THE PSI BOARD ALSO CONSIDERED THE OPINION OF ITS FINANCIAL ADVISER LEHMAN BROTHERS THAT THE IPALCO OFFER IS INADEQUATE FROM A FINANCIAL POINT OF VIEW AND THAT THE EXCHANGE RATIO ESTABLISHED TO EFFECT THE MERGER WITH CINCINNATI GAS REMAINS FAIR TO PSI SHAREHOLDERS IPALCO REPLIED THAT IT IS CONCERNED THAT THE PSI BOARD HASN'T BEEN PROVIDED FULL INFORMATION ON WHICH TO MAKE AN ANALYSIS AND CONTINUED TO CONTEND THAT ITS OFFER IS SUPERIOR IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING ON FRIDAY PSI SHARES CLOSED UNCHANGED AT 24 9304260146 930426 WHO'S NEWS CROWN CENTRAL PETROLEUM CORP CROWN CENTRAL PETROLEUM CORP BALTIMORE ROBERT M FREEMAN 51 YEARS OLD AND BAILEY A THOMAS 62 WERE NAMED TO THE 12MEMBER BOARD OF THIS PETROLEUM REFINER AND MARKETER FILLING TWO SEATS VACATED BY RETIREMENTS MR FREEMAN IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SIGNET BANKING CORP RICHMOND VA MR THOMAS IS CHAIRMAN AND CHIEF EXECUTIVE OF MCCORMICK & CO SPARKS MD 9304260145 930426 LAW LEGAL BEAT PEER PANELS FIGHT CENSURED DOCTORS' SUITS BY ARTHUR S HAYES STAFF REPORTER OF THE WALL STREET JOURNAL TO THE DISMAY OF MANY HOSPITALS COURTS ARE RULING THAT DOCTORS CENSURED BY PEERREVIEW COMMITTEES CAN PUT THEIR REVIEWERS ON TRIAL A COURSE THAT SOME WARN COULD WEAKEN THE PROFESSION'S EFFORTS TO POLICE ITSELF IN RECENT YEARS HOSPITALS HAVE PROMOTED PEERREVIEW COMMITTEES AS A WAY TO CRACK DOWN ON INCOMPETENT DOCTORS WARD OFF MALPRACTICE LAWSUITS AND IMPROVE HEALTH CARE STAFFED BY DOCTORS WHO WORK AT THE SAME HOSPITAL AS THE COLLEAGUE UNDER REVIEW THE PANELS HAVE THE POWER TO RESTRICT A DOCTOR'S WORK AND REVOKE LUCRATIVE PRIVILEGES SUCH AS PERMISSION TO PERFORM SURGERY THE CRACKDOWN HOWEVER HAS PROVOKED A RASH OF ANTITRUST LAWSUITS BROUGHT BY DOCTORS WHO FEAR THAT A SINGLE BAD REVIEW WILL BE CAREERTHREATENING UNTIL RECENTLY HOSPITAL ADMINISTRATORS WERE CONFIDENT THAT SUCH SUITS WOULD BE DISMISSED EARLY IN THE PRETRIAL STAGE THEY ARGUED THAT THE FEDERAL HEALTH CARE QUALITY IMPROVEMENT ACT OF 1986 PROTECTS REVIEW BOARDS FROM COURT CHALLENGES IN EXCHANGE FOR REPORTING INCOMPETENT DOCTORS TO A NATIONAL DATA BANK BUT RECENT RULINGS BY FEDERAL APPEALS COURTS FOR THE SIXTH US CIRCUIT IN CINCINNATI AND THE TENTH US CIRCUIT IN DENVER HAVEN'T TAKEN SUCH A HARD LINE AND THE DECISIONS ARE EXPECTED TO SPUR EVEN MORE DOCTORS TO SUE THE TWO APPEALS COURTS SAID THE 1986 LAW PROVIDES HOSPITALS AND COMMITTEE MEMBERS A LIMITED IMMUNITY FROM BEING FORCED TO PAY MONEY DAMAGES WHEN DOCTORS RAISE LEGITIMATE GRIEVANCES ABOUT HOW THEIR PEER REVIEWS WERE CONDUCTED THE APPEALS COURTS RULED TRIAL JUDGES SHOULD LET THE PLAINTIFFS CONTINUE TO GATHER EVIDENCE AND PROCEED TO TRIAL THE COURTS SAID THAT PLAINTIFFS WHO PROVE THAT A COMMITTEE FAILED TO COMPLY WITH THE FEDERAL LAW'S STANDARDS OF REASONABLENESS AND FAIRNESS COULD SUE TO HAVE THEIR PRIVILEGES REINSTATED AND THEIR DATABANK RECORDS CLEARED LAWYERS FOR THE DEFENDANTS IN THOSE CASES LIMA MEMORIAL HOSPITAL OF LIMA OHIO IN THE SIXTH CIRCUIT AND IHC HOSPITALS INC OF SALT LAKE CITY IN THE TENTH SAY THEY WILL ASK THE US SUPREME COURT TO RESOLVE THE DISPUTES THE HOSPITALS' LAWYERS SAY THE RULINGS WILL UNDERMINE EFFORTS TO PROVIDE QUALITY HEALTH CARE THEY ARGUE THAT THE THREAT OF TIMECONSUMING LITIGATION WILL CAUSE INSURANCE PREMIUMS TO SOAR AND WILL FRIGHTEN AWAY DOCTORS WHO VOLUNTEER TO SERVE ON THE COMMITTEES AS A RESULT THE LAWYERS SAY A HOSPITAL'S ABILITY TO POLICE ITS DOCTORS WILL ERODE AND THE PROFESSION'S VULNERABILITY TO MALPRACTICE SUITS WILL INCREASE CATHERINE M BALLARD AN ATTORNEY WHO FILED A BRIEF IN SUPPORT OF LIMA MEMORIAL FOR THE OHIO HOSPITAL ASSOCIATION AND THE AMERICAN HOSPITAL ASSOCIATION SAYS THAT IF COURTS GRANT HOSPITALS THE KIND OF IMMUNITY THEY WANT SUCH SUITS WOULD BE THROWN OUT WITHIN SIX MONTHS BUT IF PLAINTIFFS ARE ALLOWED TO CONDUCT PRETRIAL FACTGATHERING THE SUITS WOULD TAKE AS LONG AS SIX YEARS TO DISPOSE OF EVEN IF PEERREVIEW BOARDS ULTIMATELY WIN ACCORDING TO MS BALLARD OF LAW FIRM BRICKER & ECKLER IN COLUMBUS OHIO UNDER SUCH CONDITIONS MS BALLARD SAYS IT WOULD BE DIFFICULT TO GET PHYSICIANS TO BE ACTIVE CANDID PARTICIPANTS IN THE PROCESS IN THE CASE DECIDED BY THE SIXTH CIRCUIT IN FEBRUARY WILLIAM L MANION A PATHOLOGIST AT LIMA MEMORIAL CLAIMED THAT THE REVIEW COMMITTEE HAD AN ULTERIOR MOTIVE WHEN IT STOPPED HIM FROM READING XRAYS TO DIAGNOSE ILLNESSES DR MANION MAINTAINS THAT THE PEER REVIEW WAS INITIATED NOT OUT OF CONCERNS ABOUT HIS COMPETENCE BUT TO SABOTAGE HIS PLANS TO SET UP A RIVAL LABORATORY SERVICE THE THREEJUDGE APPELLATE PANEL SAID DR MANION HAD A LEGITIMATE CASE THAT SHOULDN'T BE DISMISSED BEFORE PRETRIAL FACT GATHERING BUT BARBARA BLACKMOND A PARTNER WITH LAW FIRM HORTY SPRINGER & MATTERN IN PITTSBURGH WHICH REPRESENTS LIMA MEMORIAL ARGUES THAT UNDER THE HEALTH CARE QUALITY IMPROVEMENT ACT A COMMITTEE'S MOTIVE IS IRRELEVANT AS LONG AS IT GIVES A DOCTOR A FAIR HEARING THE LEGAL SYSTEM SHOULDN'T BE THROWING UP IMPEDIMENTS IN THE WAY OF HOSPITALS TRYING TO IMPROVE THE QUALITY OF HEALTH CARE MS BLACKMOND SAYS IT'S TERRIBLY TRAUMATIC FOR DOCTORS TO BE CONCERNED WITH LENGTHY LITIGATION SHE SAYS THE MATTER BOILS DOWN TO AN INTERPRETATION OF CONGRESSIONAL INTENT HOSPITALS HAVE A STRONG CLAIM WHEN THEY ARGUE THAT LEGISLATORS GRANTED THE REVIEW BOARDS PROTECTION UNDER THE 1986 ACT LAWMAKERS WERE TROUBLED BY THE LARGE NUMBER OF ANTITRUST LAWSUITS CHALLENGING THE PEERREVIEW PROCESS AT THAT TIME AND ONE OF THE MAIN PURPOSES OF THE LAW WAS TO ENCOURAGE THE USE OF PEERREVIEW COMMITTEES BUT CENSURED DOCTORS ARGUE THAT THE LEGISLATORS COULDN'T HAVE INTENDED TO BAR ALL CHALLENGES TO PEERREVIEW DECISIONS THE DOCTORS SAY THAT WITHOUT THE ABILITY TO TAKE PEERREVIEW BOARDS TO COURT DOCTORS WOULD BE AT THE MERCY OF COMMITTEES THAT UNFAIRLY OR MALICIOUSLY RUIN THEIR GOOD NAMES THEY SAY A SINGLE BAD REVIEW CAN BE EXTREMELY DAMAGING BECAUSE THE DATA BANK IS TAPPED BY HOSPITALS ACROSS THE COUNTRY IT'S A PRETTY EFFECTIVE BLACKLIST SAYS DAVID K ISOM A SALT LAKE CITY ATTORNEY WHO REPRESENTS JOSEPH F DECKER IN THE LAWSUIT AGAINST IHC HOSPITALS A THIRD APPEALS COURT IN THE NINTH US CIRCUIT IN SAN FRANCISCO RULED ON THE ISSUE LAST YEAR IN A DECISION THAT LAWYERS FOR HOSPITALS FIND MORE ENCOURAGING IN THAT CASE A NEUROSURGEON CLAIMED THAT HIS TEMPORARY SUSPENSION FROM SANTA BARBARA COTTAGE HOSPITAL IN CALIFORNIA WAS THE RESULT OF FESTERING HOSTILITIES BETWEEN HIM AND DOCTORS ON THE COMMITTEE AND HAD NOTHING TO DO WITH HIS COMPETENCE THE SUIT SURVIVED PRETRIAL FACTGATHERING ONLY TO BE DISMISSED BEFORE TRIAL THE APPEALS COURT RULED THAT AS LONG AS THE COMMITTEE HAD VALID REASONS TO SUSPEND THE NEUROSURGEON HIS ASSERTIONS OF HOSTILITY DO NOT SUPPORT HIS POSITION BECAUSE THEY ARE IRRELEVANT TO COMPLIANCE WITH THE HEALTH CARE QUALITY IMPROVEMENT ACT MICHAEL CALLAHAN A PARTNER AT CHICAGO LAW FIRM KATTEN MUCHIN & ZAVIS WHICH REPRESENTED COTTAGE HOSPITAL AND CURRENTLY IS DEFENDING TWO OTHER HOSPITALS IN SIMILAR CASES SAYS THE NINTH CIRCUIT DECISION SHOWS THAT WHILE MORE REVIEW MEMBERS ARE LIKELY TO BE SUED FEW WILL EVER HAVE TO FACE A JURY MR CALLAHAN PREDICTS THAT 90 TO 95 OF THESE CASES WILL BE DISMISSED ON MOTIONS FOR SUMMARY JUDGMENT BEFORE GOING TO TRIAL THE COUNTY OF LOS ANGELES WILL PAY A JURY CONSULTING FIRM LITIGATION SCIENCES INC TO ASSIST IN THE DEFENSE OF THREE MEN ACCUSED OF ATTACKING TRUCKER REGINALD DENNY IN LAST YEAR'S RIOTS WHILE PUBLIC FUNDS ARE SOMETIMES USED TO HIRE JURY CONSULTANTS TO HELP DEFEND DEATHPENALTY CASES THE DECISION BY LOS ANGELES SUPERIOR COURT JUDGE JOHN OUDERKIRK TO APPROVE A CONSULTANT'S USE IN A NONCAPITAL CASE IS UNUSUAL LEGAL SPECIALISTS SAID THE THREE DEFENDANTS WERE CHARGED WITH ATTEMPTING TO MURDER MR DENNY DURING AN INCIDENT THAT WAS VIDEOTAPED BY NEWS HELICOPTERS AND WIDELY SEEN JAMES R GILLEN A COURTAPPOINTED LAWYER FOR DEFENDANT ANTOINE MILLER SAID THE CONSULTING SERVICES ARE ESSENTIAL TO HIS CLIENT'S RIGHT TO A FAIR TRIAL BECAUSE THIS CASE HAS GOTTEN SO MUCH PUBLICITY POTENTIAL JURORS WILL BE COMING IN WITH A GREAT DEGREE OF BIAS AND WE NEED PEOPLE TO HELP US RECOGNIZE THOSE BIASES HE SAID THE US SUPREME COURT HAS RULED THAT STATES MUST PROVIDE INDIGENT DEFENDANTS WITH LAWYERS FOR FELONY CASES OTHER COSTS CONSIDERED PART OF THE DEFENSE SUCH AS PAYMENTS TO EXPERT WITNESSES ARE ALSO USUALLY COVERED THE COMPENSATION RATE VARIES FROM STATE TO STATE AND DEPENDS ON THE SEVERITY OF THE CRIMINAL CHARGES JUDGE OUDERKIRK'S DECISION APPEARS TO SIGNAL GROWING JUDICIAL ACKNOWLEDGEMENT OF THE ROLE OF JURY CONSULTANTS THERE ARE CURRENTLY MORE THAN 300 BUSINESSES NATIONWIDE MARKETING SUCH SERVICES AS SCREENING JUROR QUESTIONNAIRES FOR BIAS AND COACHING ATTORNEYS ON HOW TO MAKE CASES MORE EMOTIONALLY COMPELLING ALTHOUGH CONSULTANTS ARE KNOWN MOSTLY FOR THEIR HIGHPRICED WORK IN BIG CORPORATE CASES JURY CONSULTING GOT ITS START WHEN A GROUP OF SOCIOLOGISTS IN THE 1960S POLLED THEIR COMMUNITIES TO LEARN ABOUT POLITICAL ATTITUDES IN ANTICIPATION OF CRIMINAL CASES AGAINST ACTIVISTS THE HIRING OF LITIGATION SCIENCES A UNIT OF SAATCHI & SAATCHI PLC LONDON IN THE DENNY CASE AT ITS STANDARD RATE OF 175 AN HOUR WAS REPORTED IN TODAY'S ISSUE OF THE NATIONAL LAW JOURNAL LITIGATION SCIENCES ONE OF THE NATION'S BIGGEST TRIAL CONSULTING FIRMS ALSO WORKED FOR THE DEFENSE IN THE RECENT FEDERAL TRIAL OF THE FOUR LOS ANGELES POLICEMEN ACCUSED OF VIOLATING RODNEY KING'S CIVIL RIGHTS IN WHICH TWO OFFICERS WERE CONVICTED THE FIRM WAS ALSO RETAINED IN THE STATE TRIAL OF THE OFFICERS A YEAR AGO WHICH RESULTED IN ACQUITTALS ON MOST CHARGES IN BOTH CASES A LOCAL POLICE FUND PAID FOR THE SERVICES AIRPORTS CAN'T BAR VENDING MACHINES THAT SELL NEWSPAPERS IN TERMINALS A FEDERAL APPEALS COURT RULED THE DECISION BY THE FOURTH US CIRCUIT COURT OF APPEALS IN RICHMOND VA SAID SUCH A BAN VIOLATES NEWSPAPERS' FREESPEECH RIGHTS A BLANKET BAN ON THE PLACEMENT OF NEWSRACKS WITHIN THE TERMINAL SUBSTANTIALLY BURDENS THE NEWSPAPER COMPANIES' EXPRESSIVE CONDUCT THE COURT SAID THE CASE AGAINST THE GREENVILLESPARTANBURG SC AIRPORT WAS BROUGHT BY A MULTIMEDIA INC UNIT THAT PUBLISHES TWO GREENVILLE PAPERS AND BY NEW YORK TIMES CO PUBLISHER OF A PAPER IN SPARTANBURG THE AIRPORT ARGUED THAT NEWSRACKS WOULD MAR THE TERMINAL'S APPEARANCE LOWER GIFTSHOP REVENUES MENACE THE SAFETY OF PASSENGERS WALKING IN THE TERMINAL AND THREATEN AIRPORT SECURITY BY POSSIBLY CONCEALING BOMBS SOME LOWER COURTS HAVE ENFORCED AIRPORT BANS ON NEWSRACKS IN 1989 A FEDERAL DISTRICT COURT IN NEW JERSEY UPHELD NEWARK INTERNATIONAL AIRPORT'S REFUSAL TO ALLOW USA TODAY VENDING MACHINES KENNEDY INTERNATIONAL AIRPORT AND LAGUARDIA AIRPORT ALSO BAN NEWSRACKS SAID A SPOKESWOMAN FOR THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY WHICH OPERATES THE THREE NEW YORK CITYAREA AIRPORTS A LAWSUIT BY THE FEDERAL DEPOSIT INSURANCE CORP WAS THROWN OUT BECAUSE THE AGENCY HADN'T APPROVED A SETTLEMENT REACHED BY FDIC ATTORNEYS NEARLY A YEAR AGO THE FEDERAL JUDGE OVERSEEING THE CASE SAID THE BUREAUCRATIC DELAYS WERE UNACCEPTABLE PARALYSIS IMPOSED ON DILIGENT ATTORNEYS WHO MUST OBTAIN FURTHER AUTHORIZATION FOR EVERY ACTION WHICH MUST IN TURN BE REVIEWED AND APPROVED AT HIGHER LEVELS TRANSLATES ITSELF INTO A LOGJAM SAID JUDGE VINCENT L BRODERICK IN WHITE PLAINS NY HE DEMANDED THAT FDIC REPRESENTATIVES DELIVER COPIES OF HIS ORDER TO THE AGENCY'S HEAD AND MEMBERS OF CONGRESS THE DISMISSED CIVIL CASE STEMMED FROM A 29000 BOUNCED CHECK SAID ROBERT GOLDSTEIN A MOUNT VERNON NY ATTORNEY FOR ONE OF THE FOUR DEFENDANTS INVOLVED MR GOLDSTEIN SAID HIS CLIENT REACHED A 4500 SETTLEMENT WITH THE ORIGINAL PLAINTIFF THE FAILED DOLLAR DRY DOCK BANK WHICH THE FDIC TOOK OVER THE SETTLEMENT NEVER GOT APPROVED ACCORDING TO THE COURT'S ORDER BECAUSE VARIOUS FDIC EMPLOYEES WERE ON VACATION OR DIDN'T RETURN LETTERS AND CALLS FROM AGENCY ATTORNEYS CLEARLY THIS ISN'T THE WAY WE DO BUSINESS SAID JOSEPH MINNITTI MANAGING LIQUIDATOR FOR THE FDIC IN SOUTH BRUNSWICK NJ HE SAID IT WOULD TAKE A COUPLE OF DAYS TO FIND OUT WHAT HAD GONE WRONG THE PEOPLE I NEED TO TALK TO AREN'T AVAILABLE TODAY ELLEN JOAN POLLOCK AND AMY STEVENS CONTRIBUTED TO THIS ARTICLE 9304260144 930426 KAWASAKI KISEN KAISHA FORECAST TOKYO KAWASAKI KISEN KAISHA LTD A JAPANESE SHIP OPERATOR ANNOUNCED IT LOWERED ITS UNCONSOLIDATED BUSINESS FORECASTS FOR THE FISCAL YEAR ENDED MARCH 1993 CITING WEAK GLOBAL ECONOMIC CONDITIONS AND THE STRONG YEN THE COMPANY ALSO REPORTED VALUATION LOSSES OF 181 BILLION YEN 164 MILLION ON ITS SECURITIES HOLDINGS AT THE END OF THE LATEST FISCAL YEAR THE COMPANY NOW EXPECTS A PRETAX PROFIT OF 115 BILLION YEN DOWN 54 FROM 25 BILLION YEN IN THE PREVIOUS FORECAST THE PRETAX PROFIT REPRESENTS OPERATING PROFIT PLUS NONOPERATING PROFIT INCLUDING FINANCIAL INCOME AND EXPENSES 9304260143 930426 IRA LAYS CLAIM TO DEVASTATING LONDON BOMB FINANCIAL DISTRICT EXPLOSION IS THE SECOND ATTACK ON AREA IN ABOUT YEAR BY GLENN WHITNEY AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL LONDON THE IRISH REPUBLICAN ARMY CLAIMED RESPONSIBILITY FOR A MASSIVE BOMB BLAST IN LONDON'S FINANCIAL DISTRICT THAT KILLED ONE PERSON INJURED 45 OTHERS AND CAUSED AS MUCH AS 1 BILLION 158 BILLION IN DAMAGES THE SECOND DEVASTATING TERRORIST ATTACK ON THE CITY OF LONDON IN JUST OVER A YEAR HAS RAISED NEW CONCERNS ABOUT THE SAFETY AND COST OF DOING BUSINESS IN THE BRITISH CAPITAL SATURDAY'S BLAST OCCURRED ABOUT A HALFKILOMETER FROM THE OFFICES OF THE EUROPEAN BANK FOR RECONSTRUCTION & DEVELOPMENT WHERE HUNDREDS OF FINANCIERS WERE GATHERED FOR THE GROUP'S ANNUAL MEETING SEVERAL WINDOWS WERE SHATTERED THERE BUT THE MEETINGS PROCEEDED AS USUAL POLICE ARE INVESTIGATING WHETHER THE IRA DELIBERATELY TRIED TO GET AS CLOSE AS IT COULD TO THE EBRD IN ORDER TO DAMAGE LONDON'S REPUTATION AS AN INTERNATIONAL FINANCIAL CENTER THE BOMB BELIEVED TO BE MADE OF ABOUT ONE TON OF FERTILIZERBASED EXPLOSIVES WAS PACKED INTO A DUMP TRUCK ABANDONED NEAR THE HEADQUARTERS OF HONGKONG & SHANGHAI BANK A FREELANCE NEWSPAPER PHOTOGRAPHER WAS KILLED BY FLYING GLASS AND ABOUT 45 OTHERS WERE INJURED SOME SEVERELY HONGKONG & SHANGHAI BANK'S HEADQUARTERS WERE RIPPED APART CAUSING SERIOUS STRUCTURAL DAMAGES POLICE SAID WINDOWS WERE BLOWN OUT OF DOZENS OF OFFICE BUILDINGS IN A 220YARD RADIUS INCLUDING TO THE TOP OF THE 52STORY NATIONAL WESTMINSTER BANK TOWER WHERE SOME 2500 PEOPLE WORK DURING THE WEEK THE BUILDING THE TALLEST IN CENTRAL LONDON IS HEADQUARTERS OF THE RETAIL BANKING OPERATIONS OF NATIONAL WESTMINSTER BANK PLC ONE OF THE UK'S TWO LARGEST COMMERCIAL BANKS ALSO HEAVILY DAMAGED WERE THE OFFICES OF MITSUBISHI BANK AND THE NATIONAL BANK OF ABU DHABI LAST APRIL THE IRA PLANTED A BOMB OUTSIDE THE BALTIC EXCHANGE NOT FAR FROM SATURDAY'S BLAST THAT KILLED THREE AND INJURED ABOUT 80 TRADING IN SHIPPING CONTRACTS AND OIL FUTURES HAD TO BE RELOCATED TEMPORARILY AND THE EXCHANGE REOPENED LAST MONTH AFTER EXTENSIVE RENOVATIONS THE BOMBING'S COST IS ESTIMATED TO BE ABOUT 350 MILLION MICHAEL CASSIDY CHAIRMAN OF THE CORPORATION OF LONDON THE FINANCIAL DISTRICT'S GOVERNING BODY SAID HE EXPECTED ABOUT 90 OF THE AREA TO BE FUNCTIONING NORMALLY TODAY INCLUDING THE BANK OF ENGLAND THE LONDON STOCK EXCHANGE THE LONDON INTERNATIONAL FINANCIAL FUTURES AND OPTIONS EXCHANGE AND THE LLOYD'S OF LONDON INSURANCE MARKET THERE WERE WIDESPREAD CALLS FOR INCREASED SECURITY FORMER HOME OFFICE MINISTER DAVID MELLOR TOLD LOCAL MEDIA THAT TERRORISTS HAVE RIPPED THE HEART OUT OF THE CITY OF LONDON PUTTING AT RISK LIVES LIVELIHOODS AND INDEED THE POSITION OF THE CITY OF LONDON AS THE WORLD'S PREMIER FINANCIAL CENTER MR MELLOR A TORY MP DEMANDED THE GOVERNMENT URGENTLY OVERHAUL ITS ANTITERRORIST POLICIES THE IRA ALSO IS BELIEVED RESPONSIBLE FOR HIJACKING TWO TAXIS SATURDAY NIGHT AND UNSUCCESSFULLY TRYING TO FORCE THE DRIVERS TO DELIVER BOMBS TO PRIME MINISTER JOHN MAJOR'S RESIDENCE AND THE OFFICES OF NEW SCOTLAND YARD UK INSURANCE COMPANIES HAVE BECOME INCREASINGLY RELUCTANT TO COVER FINANCIAL INSTITUTIONS IN THE CITY FOR TERRORIST ACTS THE NATIONAL GOVERNMENT HAS SAID THAT IT WOULD MAKE UP THE DIFFERENCE WITH TAXPAYERS' MONEY MANY INVESTMENT BANKS AND BROKERAGES IN THE AREA SAID THEY WOULD BE OPERATING NORMALLY TODAY NATWEST'S TRADING OPERATIONS WHICH ARE IN A BUILDING NEAR THE TOWER THAT WAS UNAFFECTED BY THE BLAST WILL RUN AS USUAL SAID MARTIN OWEN CHIEF EXECUTIVE OF NATWEST MARKETS AND A MEMBER OF THE BANK'S BOARD WORKERS AT THE TOWER HAVE BEEN ASKED TO REPORT TO OTHER OFFICES IN THE CAPITAL THIS IS WHERE BRITISH RESOLVE COMES IN SAID MR OWEN ANYWHERE YOU HAVE A CONCENTRATION OF ECONOMIC POWER THIS CAN HAPPEN AND WE HAVE BEEN PREPARED FOR IT SEVERAL MAJOR BRITISH AND FOREIGN FINANCIAL INSTITUTIONS DIDN'T THINK THE ATTACKS WOULD CAUSE FIRMS TO FLEE THE CITY BUT SAID IT WOULD SHAKE CONFIDENCE THESE AREN'T SMALL BOMBS THEY ARE SARAJEVOTYPE BOMBS SAID DAVID ROCHE GLOBAL STRATEGIST AT MORGAN STANLEY INTERNATIONAL BUT THEY AREN'T THE SORT OF THING THAT LEAD PEOPLE TO SAY LET'S GO TO BRUSSELS' MEMORIES ARE VERY SHORT HE CONSIDERED THE BOMBING TO BE MOSTLY A VERY VERY BIG NUISANCE FACTOR ONE REASON IS THAT BANKERS CONSIDER THERE TO BE FEW IF ANY ALTERNATIVES TO LONDON PARIS HAS HAD PLENTY OF BOMBINGS FRANKFURT IS A STRONG DOMESTIC FINANCIAL CENTER BUT NOT AN INTERNATIONAL ONE SAID AN EXECUTIVE AT MAJOR US INVESTMENT BANK OTHERS POINTED OUT THAT GERMANY ALSO WAS BESET BY TERRORISM RELATED TO A BUDDING NEONAZI MOVEMENT AND ANGER DIRECTED AT FOREIGNERS LIVING IN GERMANY THEY ALSO NOTED THAT LEFTWING EXTREMISTS HAD ASSASSINATED TOP FINANCIAL FIGURES INCLUDING ALFRED HERRHAUSEN AND JURGEN PONTO RESPECTIVELY THE HEADS OF DEUTSCHE BANK AG AND DRESDNER BANK AG GERMANY'S TWO LARGEST FINANCIAL INSTITUTIONS MR WATKINS PREDICTED THAT SATURDAY'S BOMBING WOULD PROMPT LONDON FINANCIAL INSTITUTIONS TO BEEF UP AND ACCELERATE SECURITY ARRANGEMENTS FOR INSTANCE HE SAID FIRMS WILL START STORING DATA AND OTHER VITAL INFORMATION OUTSIDE THE CITY NOT JUST STORING IT DOWN INTO THE BASEMENT MR WATKINS ADDED I WOULD HOPE THE CITY WOULD GO ONE STAGE FURTHER TO BANNING ALL PARKING IN THE CITY THE BOMBING'S BIGGEST IMPACT FINANCIAL OFFICIALS SAID WILL BE ON THE INSURANCE INDUSTRY RAISING THE QUESTION OF WHO PAYS FOR DAMAGE FROM TERRORIST ACTS AFTER LAST YEAR'S BOMBING AT THE BALTIC EXCHANGE INSURERS SAID THEY COULD NO LONGER AFFORD TO INSURE BUSINESSES AGAINST TERRORISM AND AFTER INITIALLY RESISTING THE BRITISH GOVERNMENT IN DECEMBER AGREED TO PAY PREMIUMS INTO AN INSURANCE POOL AND PICK UP THE COST OF CLAIMS AFTER THE POOL'S FUNDS WERE EXHAUSTED MY OWN PERSONAL VIEW IS THAT GOVERNMENT SHOULD UNDERWRITE THAT SORT OF THING THIS KIND OF RISK DOESN'T COME UNDER THE CATEGORY OF FREEMARKET COMPETITION SAID PAUL ABBERLEY DIRECTOR OF FIXED INCOME AT LOMBARD ODIER INVESTMENT MANAGEMENT SERVICES LTD 9304260142 930426 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR ECONOMIC GROWTH UNDOUBTEDLY SLOWED DURING THE FIRST QUARTER OF THE YEAR ECONOMISTS SAY THE BIG QUESTION IS HOW MUCH ANALYSTS ESTIMATE THAT THE NATION'S GROSS DOMESTIC PRODUCT GREW ANYWHERE FROM 1 TO 3 AT AN ANNUAL RATE DURING THE QUARTER THE ECONOMY EXPANDED AT A 47 PACE DURING THE PREVIOUS QUARTER THE BEST PERFORMANCE IN FIVE YEARS A DECELERATION OF GDP IN THE FIRST QUARTER WOULD BE TYPICAL FOR THE SEESAW ECONOMIC RECOVERY THE NATION HAS EXPERIENCED SINCE THE SPRING OF 1991 HE SAID THE SLOWER FIRSTQUARTER GROWTH IS A STEP BACKWARD NOT AN ABOUTFACE MR HOFFMAN SAID THE FORECASTS OF SLOWER GROWTH ARE SUPPORTED BY A DECREASE IN THE PACE OF SPENDING HE SAID A SEPARATE COMMERCE DEPARTMENT REPORT THIS WEEK ON PERSONAL INCOME AND SPENDING PROBABLY WILL SHOW THAT BOTH CONTINUED TO SLOW IN MARCH MR HOFFMAN SAID INCOME AND SPENDING ENDED THE FIRST QUARTER ON A FLAT NOTE BUT WE EXPECT BETTER HARMONY BETWEEN THE TWO THIS QUARTER AND THAT WILL BE SWEETER MUSIC FOR RETAILERS' EARS HE SAID 9304260141 930426 WHO'S NEWS VEBA AG VEBA AG DUESSELDORF GERMANY THIS GERMAN TRADE CHEMICAL AND ENERGY GROUP SAID ULRICH HARTMANN WILL SUCCEED KLAUS PILZ AS CHAIRMAN MR PILZ WAS KILLED APRIL 12 IN AN AVALANCHE IN THE AUSTRIAN ALPS THE 54YEAROLD MR HARTMANN IS A 20YEAR VETERAN OF VEBA AND WAS NAMED TO THE BOARD JAN 1 1990 TO OVERSEE FINANCES TAXES AND INVESTOR RELATIONS ALTHOUGH MR HARTMANN HAS HELD A SERIES OF JOBS AT VEBA AND ITS SUBSIDIARIES HIS WORK HAS BEEN ALMOST EXCLUSIVELY IN THE AREA OF FINANCES VEBA'S BOARD OF SUPERVISORS MADE THE DECISION TO APPOINT MR HARTMANN 9304260140 930406 BUSINESS BRIEF RAYTHEON CO SERVICE UNIT WINS ARMY JOB WITH 412 MILLION POTENTIAL RAYTHEON CO SAID ITS SERVICE UNIT WON A CONTRACT WITH A POTENTIAL VALUE OF 412 MILLION OVER 9 1/2 YEARS FROM THE US ARMY SPACE AND STRATEGIC DEFENSE COMMAND TO OPERATE AND MAINTAIN THE KWAJALEIN MISSILE RANGE IN THE MARSHALL ISLANDS IN THE PACIFIC OCEAN THE LEXINGTON MASS AIRCRAFT APPLIANCE AND MISSILE MAKER SAID THE CONTRACT COVERS THE TECHNICAL AND ADMINISTRATIVE PERSONNEL AND MATERIALS NECESSARY TO OPERATE AND MAINTAIN THE FACILITY THE BASE CONTRACT OF 117 MILLION COVERS 42 MONTHS WITH THREE TWOYEAR OPTIONS PHASEIN FOR THE PROJECT WILL BEGIN THIS MONTH THE COMPANY SAID WITH A FULLYOPERATIONAL STARTUP DATE SET FOR OCT 1 THE KWAJALEIN MISSILE RANGE SUPPORTS THE DEPARTMENT OF DEFENSE AND OTHER GOVERNMENT AGENCIES FOR LAUNCHING TRACKING AND COLLECTING DATA FOR GUIDED MISSILE AND SPACE VEHICLE PROGRAMS 9304260139 930426 WHO'S NEWS TIMES MIRROR CO TIMES MIRROR CO LOS ANGELES MARY JUNCK 45 YEARS OLD WAS NAMED PUBLISHER AND CHIEF EXECUTIVE OFFICER OF THE BALTIMORE SUN MS JUNCK HAD BEEN PRESIDENT AND PUBLISHER OF THE ST PAUL MINN PIONEER PRESS AND DISPATCH IN ADDITION TO OVERSEEING THE SUN'S BUSINESS AND EDITORIAL OPERATIONS MS JUNCK WILL BECOME A MEMBER OF TIMES MIRROR'S NEWSPAPER MANAGEMENT COMMITTEE THE COMPANY SAID MS JUNCK SUCCEEDS MICHAEL J DAVIES 49 WHO RESIGNED IN FEBRUARY FOR PERSONAL REASONS TIMES MIRROR SAID MS JUNCK WILL NOT ASSUME HER DUTIES UNTIL JAN 1 BECAUSE OF FAMILY COMMITMENTS 9304260138 930426 WHO'S NEWS PROGRESSIVE CORP PROGRESSIVE CORP MAYFIELD HEIGHTS OHIO PETER B LEWIS PRESIDENT AND CHIEF EXECUTIVE OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN MR LEWIS 59 YEARS OLD SUCCEEDS ALFRED LERNER WHO DIDN'T STAND FOR REELECTION MR LERNER 59 CAME UNDER FIRE FROM SOME PROGRESSIVE STOCKHOLDERS WHO CONTENDED HE ENRICHED HIMSELF ACTING AS THE COMPANY'S CHIEF FINANCIAL STRATEGIST HE WAS UNAVAILABLE FOR COMMENT BUT SAID IN A STATEMENT IN FEBRUARY WHEN HE ANNOUNCED HE WOULDN'T SEEK REELECTION THAT HE FELT HE COULD CONTRIBUTE TO THE COMPANY WITHOUT A FORMAL POSITION PROGRESSIVE IS AN AUTOMOTIVE AND SPECIALTY PROPERTYCASUALTY AND CREDITRELATED INSURANCE COMPANY 9304260137 930426 WHO'S NEWS GTE CORP GTE CORP STAMFORD CONN MICHAEL B ESSTMAN 46 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT OPERATIONS FOR THE TELEPHONE OPERATING GROUP SUCCEEDING CHARLES A CRAIN 61 WHO RETIRED MR ESSTMAN RETAINS HIS CURRENT POST AS AREA PRESIDENT CENTRAL FOR GTE TELEPHONE OPERATIONS ADDITIONALLY ROBERT C CALAFELL 51 WAS NAMED VICE PRESIDENT VIDEO SERVICES FOR THE TELEPHONE OPERATING GROUP A NEW POST HE HAD BEEN PRESIDENT OF GTE AIRFONE HORACE A LINDSAY 55 WILL SUCCEED HIM IN THAT POST MR LINDSAY HAD BEEN VICE PRESIDENT AND GENERAL MANAGER IMAGERY AND INTELLIGENCE PROCESSING ORGANIZATION FOR GTE GOVERNMENT SYSTEMS ELECTRONIC DEFENSE DIVISION A POST CURRENTLY VACANT 9304260136 930426 EXXON EARNINGS WERE OFF 85 FOR 1ST QUARTER BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL EXXON CORP SAID FIRSTQUARTER NET INCOME FELL 85 BECAUSE OF WEAKER REFINING AND MARKETING PROFITS IN EUROPE AND LOWER CHEMICAL EARNINGS EXXON THE NATION'S BIGGEST OIL COMPANY BECAME THE FIRST THIS YEAR TO REPORT A YEARTOYEAR DECLINE BUT ELIMINATING ONETIME CHARGES THE COMPANY'S OVERALL OPERATING RESULTS WERE FLAT ANALYSTS ALSO SAID THAT EXXON'S 1992 FIRSTQUARTER EARNINGS WERE RELATIVELY STRONG COMPARED WITH THE REST OF THE INDUSTRY'S SO EXXON HAD A TOUGHER TIME SHOWING IMPROVEMENT THEY'VE BEEN PUNISHED FOR DOING WELL IN THE PAST WHILE OTHERS HAD EASIER COMPARISONS SAID BRYAN JACOBOSKI AN OIL ANALYST AT PAINEWEBBER INC IN THE QUARTER EXXON'S NET INCOME SLID TO 119 BILLION OR 94 CENTS A SHARE FROM 13 BILLION OR 103 A SHARE REVENUE FELL 23 TO 2726 BILLION FROM 2791 BILLION THE 1993 QUARTER INCLUDED GAINS TOTALING 47 MILLION FROM TAX CREDITS AND THE 1992 QUARTER INCLUDED 158 MILLION OF GAINS MOSTLY FROM ASSET SALES AND TAX CREDITS OUTSIDE THE US LOWER OPERATING EXPENSES WERE A MAJOR POSITIVE FACTOR IN THE 1993 FIRST QUARTER SAID EXXON'S CHAIRMAN LAWRENCE RAWL HIS COMMENTS ECHO THE COSTCUTTING BENEFITS THAT OTHER BIG OIL COMPANIES HAVE CREDITED FOR IMPROVING PROFITS INVESTORS REACTED COOLLY TO EXXON'S RESULTS DRIVING THE STOCK DOWN FRIDAY BY 1625 TO SETTLE AT 6425 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING BUT STOCKS OF OTHER BIG OIL COMPANIES ALSO DECLINED FRIDAY MR JACOBOSKI OF PAINEWEBBER SAID HE DIDN'T KNOW OF ANY PARTICULAR REASON FOR THE DECLINES BUT SPECULATED THAT INVESTORS HAVE SEEN HOW WEAK US REFINING AND MARKETING FIGURES WERE FOR EXXON AND OTHER OIL COMPANIES AND THAT THEY HAVE SOURED SOMEWHAT ON THE INDUSTRY EXXON FOR INSTANCE SAID ITS DOMESTIC REFINING AND MARKETING PROFIT IN THE QUARTER SLID TO A MERE 21 MILLION FROM 23 MILLION PETROLEUM PRODUCT AND CHEMICAL MARGINS REMAINED WEAK DURING THE QUARTER MR RAWL SAID BUT THE SURGE IN DOMESTIC NATURAL GAS PRICES HELPED EXXON TO NEARLY DOUBLE ITS US EXPLORATION AND PRODUCTION PROFIT TO 228 MILLION HIGHER OIL PRICES ALSO HELPED DOMESTICALLY AND ABROAD BASED IN IRVING TEXAS EXXON SAID ITS CAPITAL AND EXPLORATION SPENDING DECLINED 19 IN THE QUARTER TO 158 BILLION REFLECTING IN PART THE COMPLETION OF SEVERAL MAJOR DEVELOPMENT PROJECTS LAST YEAR MEANWHILE ASHLAND OIL INC A REGIONAL REFINER MARKETER AND CHEMICAL COMPANY BASED IN ASHLAND KY SAID IT HAD NET INCOME OF 835000 OR ONE CENT A SHARE INCLUDING A 9 MILLION GAIN ON THE SALE OF BARGE OPERATIONS IN ITS SECOND QUARTER ENDED MARCH 31 A YEAR EARLIER THE COMPANY HAD A LOSS OF 134 MILLION OR 23 CENTS A SHARE WHICH WAS RESTATED TO REFLECT ACCOUNTING CHANGES 9304260135 930426 INTERNATIONAL BRITAIN'S RECOVERY THOUGH NOT OFFICIAL IS SHOWING UP IN STRONG ECONOMIC DATA BY CRAIG FORMAN AND GLENN WHITNEY STAFF REPORTERS OF THE WALL STREET JOURNAL LONDON BRITAIN'S ECONOMY IS FINALLY BEGINNING TO BRIGHTEN AFTER NEARLY THREE YEARS OF RECESSION JUST AS THE REST OF EUROPE IS HITTING THE SKIDS HOUSING SALES ARE RISING UNEMPLOYMENT IS FALLING AND ECONOMIC CONFIDENCE IS ON THE REBOUND LOWER INTEREST RATES AND THE WEAK BRITISH POUND ARE PRODUCING BOTH EXPORT GROWTH AND RISING CONSUMPTION THE GREEN SHOOTS OF RECOVERY BRITISH POLITICIANS LOVE TO TALK ABOUT AND SO FAR ANYWAY THERE IS LITTLE SIGN OF INFLATION THE BRITISH ECONOMY'S GREAT MALADY THE ECONOMY IS GROWING EXTREMELY STRONGLY AT THE MOMENT SAID ANDREW MILLIGAN AN ECONOMIST AT BROKERAGE FIRM SMITH NEW COURT PLC REPEATED REDUCTIONS IN BASE LENDING RATES OVER THE PAST YEAR TO 6 AT PRESENT HAVE HAD THE INTENDED EFFECT OF STIMULATING THE ECONOMY HE SAID FOR INSTANCE MR MILLIGAN NOTED THAT RETAIL SALES ARE GROWING AT A 6 ANNUAL RATE MORE TYPICAL OF BOOM TIMES THAN A MILD UPTURN THE CLEAREST SIGN YET OF A RECOVERY MAY COME TODAY WHEN FIRSTQUARTER GROWTH FIGURES ARE RELEASED GROSS DOMESTIC PRODUCT THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED IS EXPECTED TO SHOW GROWTH OF AROUND 04 AS MODEST AS IT MAY APPEAR THE GROWTH OFFICIALLY WOULD SIGNAL THE END TO THE LONGESTRUNNING RECESSION IN THE INDUSTRIALIZED WORLD THE GDP NUMBERS FOLLOW A SLIGHT DROP IN THE UK UNEMPLOYMENT RATE FOR MARCH REPORTED LAST WEEK BRITAIN'S POLITICAL LEADERSHIP HAS SEIZED ON THE BULLISH ECONOMIC NEWS AS A SIGN OF BETTER TIMES TO COME THINGS ARE CERTAINLY GETTING QUITE SHARPLY BETTER PRIME MINISTER JOHN MAJOR SAID LATE LAST WEEK ON TELEVISION HE HAD BEEN SEVERELY CRITICIZED FOR FAILING TO BOOST THE ECONOMY IN THE 13 MONTHS SINCE HIS CONSERVATIVE PARTY WAS REELECTED BRITISH OFFICIALS SEEM TO BE CONTRASTING THE GOOD NEWS HERE WITH THE ECONOMIC DARKNESS IN CONTINENTAL EUROPE WHICH IS JUST NOW ENTERING A POTENTIALLY SEVERE RECESSION THE BRITISH VIEW THE ECONOMIC DATA AS A VINDICATION OF THE DECISION TO PULL STERLING OUT OF THE EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM LAST SEPTEMBER BUT SUCH A JUDGMENT MIGHT BE PREMATURE BRITISH GOVERNMENT DEBT IS SURGING TO COPE WITH A WIDENING DEFICIT AND THE COUNTRY IS FAR FROM MEETING THE CRITERIA SPELLED OUT BY EUROPEAN PLANS FOR MONETARY UNION BY THE END OF THE CENTURY STILL THERE IS NO DISPUTING THE GOOD NEWS IN BRITAIN UNEMPLOYMENT AT 105 IS AT THE LOWEST LEVEL SINCE NOVEMBER THE NUMBER OF JOBLESS PEOPLE HAS TUMBLED TO 2940000 BELOW THE POLITICALLY SENSITIVE THREE MILLION FIGURE REACHED AT THE BEGINNING OF THE YEAR THE BRITISH CHAMBER OF COMMERCE'S RECENT SURVEY OF 9000 COMPANIES FOUND BUSINESS CONFIDENCE AT A FOURYEAR HIGH WITH OPTIMISM PARTICULARLY STRONG AMONG FIRMS THAT EXPORT HEAVILY THE UPTURN IS BEING FUELED BY THE EXPORT INDUSTRY WHICH RECEIVED A MAJOR BOOST FROM THE POUND STERLING'S 20 LOSS IN VALUE VS THE DOLLAR AND MOST MAJOR EUROPEAN CURRENCIES AFTER IT WAS WITHDRAWN FROM THE ERM THE DROP IN STERLING WAS SOMETHING THAT LARGE COMPANIES SEIZED ON RIGHT AWAY AS A COMPETITIVE ADVANTAGE IN EUROPE SAID FIONA JOHNSON AN ECONOMIST WITH THE BRITISH CHAMBER OF COMMERCE WE SEE THAT SMALLER FIRMS ARE NOW STARTING TO PICK UP ON THAT AS WELL THE CONSTRUCTION INDUSTRY OFTEN A LEADING INDICATOR OF ECONOMIC GROWTH ALSO DETECTS SIGNS OF BUSINESS PICKING UP THE FEDERATION OF MASTER BUILDERS SAID THEY HAVE MORE WORK ORDERS THAN ANY TIME SINCE EARLY 1990 BUT THERE ARE REASONS FOR CAUTION THIS COULD BE ANOTHER FALSE DAWN TO BE FOLLOWED BY YET ANOTHER RECESSIONARY DIP AND THE DANGER OF AN INFLATIONARY BOOM REMAINS WORRISOME IN A BRITISH ECONOMY STILL DOMINATED BY CONSUMER SPENDING AND LAGGING BEHIND IN INDUSTRIAL INVESTMENT AND CAPITAL SPENDING THERE ARE CONCERNS THAT THE NASCENT RECOVERY IN THE UK MAY BE SQUEEZED BY A RESURGENT POUND WHICH HAS BEEN RISING IN FITS AND STARTS NOTABLY AGAINST THE GERMAN MARK IN ANY EVENT IT'S TOO EARLY FOR EUPHORIA BRITAIN WILL NEED TREMENDOUS GROWTH JUST TO GET BACK TO WHERE IT WAS IN 1990 BEFORE THE RECESSION SINCE THEN THE BRITISH ECONOMY HAS SHRUNK BY ABOUT 5 PRODUCING BILLIONS OF POUNDS IN LOSSES FOR INDUSTRIAL COMPANIES AND BANKS 9304260134 930426 WHO'S NEWS PRINCETON DIAGNOSTIC LABORATORIES OF AMERICA INC PRINCETON DIAGNOSTIC LABORATORIES OF AMERICA INC SOUTH PLAINFIELD NJ WARREN N MAJEK 36 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS COMPANY THAT PROCESSES TOXICOLOGY SAMPLES UNDER FEDERAL GUIDELINES FOR PREEMPLOYMENT AND RANDOMSAMPLING WORKPLACE DRUG DETECTION PROGRAMS HE WILL SUCCEED DR CARLTON E TURNER WHO RESIGNED DR TURNER COULDN'T BE REACHED FOR COMMENT THE COMPANY SAID THE 52YEAROLD DR TURNER PRESIDENT AND CHIEF EXECUTIVE SINCE 1987 WILL REMAIN A DIRECTOR 9304260133 930426 WHO'S NEWS ASHLAND COAL INC ASHLAND COAL INC HUNTINGTON WVA WERNER EXTERNBRINK AND ROBERT L HINTZ WERE ELECTED TO THE BOARD OF THIS COAL PRODUCER MR EXTERNBRINK 54 YEARS OLD IS A MEMBER OF THE BOARD OF MANAGING DIRECTORS OF SAARBERGWERKE AG A GERMAN COAL COMPANY AND ASHLAND SHAREHOLDER HE SUCCEEDS HUBERT SCHAEFER WHO RETIRED MR SCHAEFER 61 IS RETIRED DIRECTOR OF INTERNATIONAL COAL ACTIVITIES AT SAARBERGWERKE MR HINTZ 62 IS RETIRED EXECUTIVE VICE PRESIDENT OF CSX CORP AND IS CHAIRMAN OF RL HINTZ ASSOCIATES HE SUCCEEDS ROBERT B CLAYTOR RETIRED CHAIRMAN AND CHIEF EXECUTIVE OF NORFOLK SOUTHERN CORP WHO DIED EARLIER THIS MONTH AT AGE 71 9304260132 930426 WHO'S NEWS SUMMAGRAPHICS CORP SUMMAGRAPHICS CORP SEYMOUR CONN THIS MANUFACTURER OF COMPUTER PERIPHERALS NAMED MICHAEL S BENNETT 41 YEARS OLD PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR HE SUCCEEDS WILLIAM J LIFKA 63 WHO REMAINS CHAIRMAN MR BENNETT MOST RECENTLY WAS VICE PRESIDENT PERSONAL COMPUTER SYSTEMS OF DELL COMPUTER CORP AUSTIN TEXAS 9304260131 930426 INTERNATIONAL RUSSIAN REFERENDUM IS PROJECTED TO PROVIDE GOOD NEWS FOR YELTSIN EXIT POLLS SHOW PRESIDENT HAS STRONG SUPPORT BUT PARLIAMENT MAY STAND THIS ARTICLE WAS PREPARED BY WALL STREET JOURNAL REPORTERS ELISABETH RUBINFIEN IN MOSCOW CLAUDIA ROSETT IN KALININGRAD AND NEELA BANERJEE IN VIDENSKY ACROSS RUSSIA VOTERS TURNED OUT IN SUBSTANTIAL NUMBERS FOR YESTERDAY'S NATIONWIDE REFERENDUM ON WHETHER THEY SUPPORT BORIS YELTSIN AND THE PRESIDENT APPEARED TO BE DOING WELL IN VIDENSKY A SMALL VILLAGE 60 MILES EAST OF MOSCOW A CLUSTER OF ELDERLY WOMEN IN VINYL RAINCOATS AND THICK STOCKINGS SPOKE BITTERLY OF DECADES OF POVERTY AND LOCAL OFFICIALS WHO STILL RUN THE TOWN AS A FIEF IT'S REASON ENOUGH FOR THEIR UNANIMOUS SUPPORT OF PRESIDENT YELTSIN IN THE REFERENDUM IN MOSCOW VALERA SHESTAKOV A 37YEAROLD ENGINEER WALKS BRISKLY OUT OF THE POLLING STATION AT MIDDLE SCHOOL NO 291 I VOTED FOR HIM BECAUSE NOW THERE IS NO ALTERNATIVE HE SAYS WE MUSN'T STOP REFORMS NOW MIDWAY DOWN THE PATH OFFICIAL TURNOUT FIGURES SHOWED ABOUT 65 OF REGISTERED VOTERS TOOK PART IN THE BALLOTING IN SOME REGIONS TURNOUT WAS AS HIGH AS 70 WHILE IN OTHERS THAT ARE SEEKING GREATER AUTONOMY TURNOUT WAS VERY LOW AN EXIT POLL TAKEN BY A RUSSIAN POLLING AGENCY IN 16 CITIES FOUND SUPPORT FOR MR YELTSIN WAS HIGH ACCORDING TO THE WEEKLY NEWS PROGRAM ITOGI THE CONSTITUTIONAL COURT LAST WEEK DECIDED THAT A SIMPLE MAJORITY OF THE TURNOUT WOULD BE ENOUGH TO CLAIM VICTORY ON THE REFERENDUM'S FIRST TWO QUESTIONS BUT THAT A MAJORITY OF THE ELECTORATE REGARDLESS OF TURNOUT WOULD BE NEEDED TO WIN ON THE SECOND TWO THE REFERENDUM'S FOUR QUESTIONS WERE DO YOU BELIEVE IN THE PRESIDENT DO YOU SUPPORT HIS REFORMS DO YOU WANT EARLY PRESIDENTIAL ELECTIONS DO YOU WANT EARLY PARLIAMENTARY ELECTIONS THE POLL WHICH COVERED 3000 PEOPLE FOUND 74 SAID YES TO THE FIRST QUESTION 66 SAID YES TO THE SECOND 70 SAID NO TO THE THIRD AND 78 SAID YES TO THE FOURTH THAT PATTERN IS THE MOST BENEFICIAL FOR MR YELTSIN BUT THE TURNOUT WAS PROBABLY TOO LOW TO GIVE MR YELTSIN THE ABSOLUTE MAJORITY HE NEEDS TO FORCE PARLIAMENTARY ELECTIONS THE POLL HAD A 5 MARGIN OF ERROR BECAUSE OF THE RELATIVELY SMALL PROPORTION OF THE POPULATION SURVEYED AND IT WAS CONDUCTED IN BIG CITIES WHICH USUALLY ARE YELTSIN STRONGHOLDS ALTHOUGH POLLING IN RUSSIA IS CONSIDERED INEXACT WESTERN NEWS AGENCY POLLS TAKEN EARLIER SHOWED RESULTS EVEN MORE FAVORABLE FOR MR YELTSIN OFFICIAL RESULTS SHOULD START COMING IN MONDAY MORNING BUT FINAL RESULTS WON'T BE AVAILABLE UNTIL THE END OF THE WEEK THE APPARENT HIGH LEVEL OF SUPPORT FOR MR YELTSIN DOESN'T REFLECT OVERWHELMING ENTHUSIASM FOR HIM RATHER MANY PEOPLE SAY THEY VOTED IN HIS FAVOR BECAUSE THERE IS NO GOOD ALTERNATIVE OR BECAUSE THEY DISTRUST THE CONGRESS OF PEOPLE'S DEPUTIES AND ITS CHAIRMAN RUSLAN KHASBULATOV EVEN MORE THAN THEY DO MR YELTSIN WHAT REFORMS CAN THE PRESIDENT CARRY OUT WHEN THE CONGRESS WON'T LET HIM WORK SAYS VALENTINA GOLOTSEVA A 53YEAROLD RETIREE IN VIDENSKY MR YELTSIN IS PREPARING TO USE ANY MEASURE OF SUPPORT TO PUSH THROUGH HIS NEXT AGENDA PASSING A NEW CONSTITUTION THAT WILL CREATE A BICAMERAL PARLIAMENT AND CALLING FOR ELECTIONS TO THAT PARLIAMENT BY THIS AUTUMN MR YELTSIN IS READY TO BEGIN PUSHING REFORM MEASURES AS EARLY AS TODAY HE SAID OVER THE WEEKEND THAT HE HAS DECREES PREPARED ON MONETARY AND CREDIT POLICY AND ON REORGANIZATION OF STATE ENTERPRISES HE CLEVERLY HAS LAID GROUND ALREADY FOR CLAIMING A MANDATE TO PASS HIS NEW CONSTITIUTION IN THE PAST FEW DAYS OF CAMPAIGNING MR YELTSIN REPEATEDLY CLAIMED THAT A VOTE IN HIS FAVOR IS A VOTE FOR HIS CONSTITUTION BUT THE OUTLINE OF HIS CONSTITUTION WAS ONLY PUBLICIZED IN SATURDAY'S NEWSPAPERS AND FEW VOTERS INTERVIEWED SEEMED AWARE OF THE ISSUE AND EARLY RETURNS INDICATED THAT FAR FEWER PEOPLE SUPPORTED HOLDING EITHER EARLY PRESIDENTIAL OR PARLIAMENTARY ELECTIONS THAN WOULD BE NECESSARY FOR AN AUTOMATIC VICTORY A NUMBER OF DRAFT CONSTITUTIONS EXIST AND HOW TO COORDINATE IT ALL IS HARD TO UNDERSTAND SAYS VLADIMIR PESHCHERSKY A 59YEAROLD FREELANCE EDITOR IN MOSCOW WHO VOTED FOR MR YELTSIN FOR PRESIDENT TWO YEARS AGO BUT AGAINST HIM YESTERDAY YELTSIN PURSUES HIS OWN LINE WITHOUT CONSIDERING THE OTHER VIEWS MR YELTSIN'S BID TO PASS HIS CONSTITUTION WON'T GO SMOOTHLY NO MATTER HOW HIGH HIS SUPPORT HIS DRAFT ENVISAGES A CLEAR DIVISION OF POWER BETWEEN THE EXECUTIVE LEGISLATIVE AND JUDICIAL BRANCHES OF GOVERNMENT IN A STRUCTURE SIMILAR TO FRANCE'S BUT WITH A POWERFUL EXECUTIVE AS IN THE US MANY IN THE CONGRESS WOULD PREFER A CONSTITUTION IN WHICH THE PRESIDENT IS HEAD OF STATE BUT LITTLE MORE EVEN IF 100 OF THE ELECTORATE VOTE FOR CONFIDENCE IN THE PRESIDENT HE HAS NO RIGHT TO EFFECT CONSTITUTIONAL CHANGES ONESIDEDLY MR KHASBULATOV SAID ACCORDING TO THE ITARTASS NEWS AGENCY FOREIGN AND RUSSIAN OBSERVERS WERE SCATTERED ACROSS THE COUNTRY TRYING TO ASSURE THAT NO TAMPERING TOOK PLACE DURING THE CAMPAIGN THE PRESIDENT'S OPPOSITION CHARGED THAT REFERENDUM RESULTS WOULD BE FALSIFIED IN GENERAL THOUGH VOTING APPEARED TO GO SMOOTHLY 9304260130 930426 STATES GET BOOST IN EFFORTS TO TAX FOREIGN FIRMS CLINTON ASSISTS CALIFORNIA IN CASE THAT IS PENDING BEFORE SUPREME COURT BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION SEEKING TO HELP FISCALLY STRAPPED CALIFORNIA HAS ABANDONED LONGSTANDING FEDERAL OPPOSITION TO STATE EFFORTS TO TAX FOREIGNBASED MULTINATIONAL CORPORATIONS MORE AGGRESSIVELY THE WHITE HOUSE HAS INSTRUCTED THE JUSTICE DEPARTMENT TO REMAIN NEUTRAL IN A PENDING SUPREME COURT CASE THAT CHALLENGES CALIFORNIA'S TOUGH TAX POLICY FOR FOREIGN MULTINATIONALS AT STAKE ARE BILLIONS OF DOLLARS IN TAX REVENUE THAT CALIFORNIA MIGHT HAVE TO REFUND TO FOREIGN COMPANIES IF THE SUPREME COURT AGREES TO HEAR THE CASE AND RULES AGAINST THE STATE FOLLOWING THROUGH ON A CLINTON CAMPAIGN PROMISE TO HELP THE ECONOMICALLY TROUBLED STATE THE ADMINISTRATION WON'T FILE A BRIEF URGING THE HIGH COURT TO TAKE THE CASE AND REVERSE LOWERCOURT RULINGS FAVORING CALIFORNIA ACCORDING TO A SENIOR WHITE HOUSE AIDE THE CLINTON ADMINISTRATION STOOD UP FOR CALIFORNIA AND DID NOT CAVE IN TO AN INTENSE PRESSURE CAMPAIGN WAGED BY FOREIGNBASED MULTINATIONAL CORPORATIONS THEIR HOST GOVERNMENTS AND THEIR LOBBYISTS SAID BRAD SHERMAN CHAIRMAN OF THE STATE'S BOARD OF EQUALIZATION IN A PRESS RELEASE LAST WEEK MR SHERMAN SAID THENCANDIDATE MR CLINTON PROMISED HIM IN JUNE 1992 THAT HE WOULD TAKE A PROCALIFORNIA POSITION IN THE LITIGATION IF HE WAS ELECTED PRESIDENT THROUGHOUT THE PROTRACTED LOWERCOURT PROCEEDINGS IN THE CASE THE JUSTICE DEPARTMENT FILED BRIEFS WARNING THAT CALIFORNIA'S AGGRESSIVE TAX POLICY ANGERED US TRADING PARTNERS AND COULD CAUSE RETALIATORY ACTIONS BY FOREIGN GOVERNMENTS THAT WOULD HURT US COMPANIES AS RECENTLY AS LAST FALL THE DEPARTMENT FILED A BRIEF WITH THE SUPREME COURT SUPPORTING A CHALLENGE TO THE CALIFORNIA TAXING METHOD BY BARCLAYS BANK PLC THE DEPARTMENT SAID THE SOCALLED WORLDWIDE UNITARY APPROACH HAS CREATED AN IRRITANT IN THE COMMERCIAL RELATIONS OF THE UNITED STATES AND ITS MAJOR TRADING PARTNERS THE SUPREME COURT DECLINED TO INTERVENE IN THE BARCLAYS CASE IN OCTOBER PERHAPS BECAUSE OF PROCEDURAL COMPLICATIONS IN THE LITIGATION BUT NOW THE CASE IS BACK BEFORE THE HIGH COURT WITH THOSE COMPLICATIONS IRONED OUT LAWYERS SAY THAT THE JUSTICE DEPARTMENT'S FAILURE TO REITERATE ITS EARLIER POSITION MIGHT DISCOURAGE THE JUSTICES FROM AGREEING TO REVIEW THE LAWSUIT THE DEPARTMENT'S INACTION CERTAINLY DOESN'T HELP SAID MARK EVANS A WASHINGTON LAWYER WHO HAS FILED BRIEFS WITH THE SUPREME COURT ON BEHALF OF A COALITION OF BUSINESS GROUPS THAT WANT THE HIGH COURT TO INTERVENE MR EVANS ADDED HOWEVER THAT THE JUSTICES STILL COULD AGREE TO HEAR THE CASE THE DEADLINE FOR THE ADMINISTRATION TO FILE A BRIEF IN THE CASE IS TODAY THE COURT IS EXPECTED TO CONSIDER WHETHER TO HEAR THE CASE WITHIN THE NEXT TWO MONTHS AND A DECISION WOULDN'T COME UNTIL NEXT YEAR ANOTHER ALTERNATIVE AVAILABLE TO THE JUSTICES IS TO INVITE THE JUSTICE DEPARTMENT TO FILE A BRIEF A STEP THAT COULD FORCE THE ADMINISTRATION TO OFFER A PUBLIC EXPLANATION OF THE POLICY SHIFT THE CENTRAL ISSUE IN THE CASE IS CALIFORNIA'S POLICY OF TAXING A PORTION OF THE WORLDWIDE INCOME OF FOREIGNBASED MULTINATIONAL COMPANIES INCLUDING INCOME OF PARENT COMPANIES AND OTHER AFFILIATES BASED ON A FORMULA REFLECTING THE AMOUNT OF BUSINESS THE FIRMS DO IN CALIFORNIA IN CONTRAST THE FEDERAL GOVERNMENT AND MOST OTHER STATES TREAT A US SUBSIDIARY OF A FOREIGN FIRM AS A SEPARATE CORPORATION AND TAX ONLY THE INCOME OF THAT UNIT IF THE SUPREME COURT WERE TO RULE THAT CALIFORNIA'S TAX POLICY UNCONSTITUTIONALLY INTERFERES WITH FOREIGN COMMERCE THE STATE COULD BE FORCED TO REFUND SEVERAL BILLION DOLLARS IN PREVIOUSLY COLLECTED REVENUE CALIFORNIA OFFICIALS SAID A SENIOR LAWYER IN THE SOLICITOR GENERAL'S OFFICE AT THE JUSTICE DEPARTMENT DECLINED FRIDAY TO COMMENT ON THE DECISION TO STAY NEUTRAL IN THE CASE 9304260129 930426 WHO'S NEWS MIDLAND FINANCIAL GROUP INC MIDLAND FINANCIAL GROUP INC MEMPHIS TENN CHARLES H GRAY III WAS NAMED PRESIDENT OF THIS AUTOMOBILEINSURANCE UNDERWRITER MR GRAY 44 YEARS OLD SUCCEEDS PHILIP R ZANONE 51 WHO WAS NAMED VICE CHAIRMAN AND CHIEF INVESTMENT OFFICER MR GRAY HAD BEEN EXECUTIVE VICE PRESIDENT AND WILL REMAIN CHIEF OPERATING OFFICER AS VICE CHAIRMAN MR ZANONE SUCCEEDS CHARLES P BROWN 63 WHO WASN'T NOMINATED FOR REELECTION SHRINKING THE BOARD TO EIGHT MEMBERS FROM NINE THEODORE J BENDER III 45 A SENIOR VICE PRESIDENT OF ROBINSONHUMPHREY CO WAS ELECTED TO THE BOARD SUCCEEDING THOMAS W STAED 61 WHOM THE COMPANY DIDN'T RENOMINATE ALSO ELENA BARHAM 34 WAS PROMOTED TO SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER A NEW TITLE SHE HAD BEEN VICE PRESIDENT AND CONTROLLER AND REMAINS SECRETARY 9304260128 930426 US TO TRIM ITS DEBT THROUGH SALE OF BILLS WASHINGTON THE TREASURY PLANS TO PAY DOWN 200 MILLION ON THE PUBLIC DEBT WITH THE SALE THURSDAY OF ABOUT 1425 BILLION IN 52WEEK BILLS MATURING BILLS TOTAL 1445 BILLION THE BILLS WHICH BEAR CUSIP NUMBER 912794K45 WILL BE DATED MAY 6 AND WILL MATURE MAY 5 1994 NONCOMPETITIVE TENDERS MUST BE RECEIVED BY NOON EDT THURSDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM THE MINIMUM DENOMINATION IS 10000 9304260127 930426 FIRST CITY PROBE LEADS TO INDICTMENT OF EXBANK OFFICIAL BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL A FEDERAL GRAND JURY IN HOUSTON RETURNED THE FIRST INDICTMENTS IN A CONTINUING INVESTIGATION INTO THE FAILURE OF FIRST CITY BANCORP OF TEXAS ON FRIDAY FRANK C CIHAK FORMER VICE CHAIRMAN OF THE BANK HOLDING COMPANY PLEADED NOT GUILTY TO CHARGES OF MAKING 38 MILLION IN ILLEGAL LOANS AND RECEIVING KICKBACKS FROM SEVERAL CONSULTANTS HE'D HIRED FOR ALLEGEDLY EXORBITANT FEES MR CIHAK 51 YEARS OLD FACES 33 COUNTS OF CONSPIRACY BANK FRAUD WIRE FRAUD MISAPPLICATION OF BANK FUNDS MAKING FALSE STATEMENTS TO OBTAIN LOANS AND LAUNDERING MORE THAN 37 MILLION IN FRAUDULENTLY OBTAINED FUNDS HIS ATTORNEY HARVEY SILETS TERMED THE CHARGES BASELESS AND AN OUTGROWTH OF GOVERNMENTAL NEED TO JUSTIFY THEIR MISCALCULATION IN TAKING OVER FIRST CITY CONSULTANTS WILLIA ALLEN 62 OF CHICAGO AND LLOYD SWIFT 52 OF LAS VEGAS ALSO WERE INDICTED LATE WEDNESDAY ON SIMILAR CHARGES MS ALLEN FACES NINE COUNTS MR SWIFT 10 NEITHER COULD BE REACHED FOR COMMENT THEIR ARRAIGNMENTS ARE SCHEDULED FOR THIS WEEK MR CIHAK IN PARTNERSHIP WITH A ROBERT ABBOUD FORMER CHAIRMAN OF FIRST CITY LED A 1988 BAILOUT OF THE BANKING CONCERN THAT WAS AIDED BY 970 MILLION IN FEDERAL FUNDS BOTH MEN EVENTUALLY WERE FORCED OUT AS THE BANK CONTINUED LOSING MONEY MR ABBOUD'S ATTORNEY STANLEY S ARKIN SAID HIS CLIENT IS DEEPLY SADDENED AT THE ALLEGATIONS AGAINST MR CIHAK BUT KNOWS NOTHING ABOUT THEIR VERACITY MR ABBOUD WASN'T INTERVIEWED BY THE GRAND JURY AND DOESN'T SEEM TO BE A TARGET OR SUBJECT OF THE INVESTIGATION MR ARKIN SAID FIRST CITY WAS IN THE MIDST OF ANOTHER RECAPITALIZATION EFFORT IN OCTOBER WHEN FEDERAL REGULATORS SEIZED ITS 20 BANKS SHUTTING THEM DOWN AFTER FAILED EFFORTS TO FIND A MERGER PARTNER OR INVESTOR THE COMPANY NOW IN BANKRUPTCY PROCEEDINGS MAINTAINS THAT THE SEIZURE AND CLOSURE WERE UNJUSTIFIED AND PREMATUREARGUMENTS FANNED BY THE FACT THAT THE FEDERAL DEPOSIT INSURANCE CORP NOW BELIEVES THE SALES OF THE FAILED BANKS WILL GENERATE A 60 MILLION SURPLUS RATHER THAN COST THE INSURANCE FUND MONEY AS TYPICALLY HAPPENS ANY SURPLUS WOULD BE RETURNED TO THE HOLDING COMPANY KICKBACKS ACCORDING TO THE INDICTMENT MR CIHAK HIRED MS ALLEN AND MR SWIFT AS CONSULTANTS FOR FIRST CITY PAYING THEM HEFTY FEES IN EXCHANGE FOR KICKBACKS AND THEN APPROVED FRAUDULENT LOANS TO THEM AND A THIRD UNINDICTED CONSULTANT DAVID LUCTERHAND OF CHICAGO MR LUCTERHAND WHO ALSO ALLEGEDLY ACTED AS A STRAW BORROWER FOR MR CIHAK IN A 18 MILLION LOAN FROM FIRST CITY AGREED TO TESTIFY AS A GOVERNMENT WITNESS SAID ASSISTANT US ATTORNEY ALBERT A BALBONI MR LUCTERHAND COULD NOT BE REACHED FOR COMMENT MR CIHAK ALSO IS ACCUSED OF TRYING TO DEFRAUD CITIBANK OF NEW YORK AND WORTH BANK & TRUST OF WORTH ILL IN AN UNUSUAL TWIST FEDERAL MAGISTRATE MARCIA CRONE REFUSED TO PERMIT MR CIHAK TO POST HIS 200000 BOND THURSDAY DEMANDING THAT HIS WIFE BE BROUGHT FROM CHICAGO TO SIGN THE BOND ACCORDING TO SEVERAL PEOPLE PRESENT THE JUDGE SAID IT WOULDN'T HURT MR CIHAK TO SPEND A NIGHT IN JAIL 9304260126 930426 MERC TO START TRADING FUTURES AND OPTIONS TIED TO GERMAN RATES CHICAGO THE CHICAGO MERCANTILE EXCHANGE TODAY WILL BEGIN TRADING FUTURES AND OPTIONS CONTRACTS BASED ON GERMAN INTEREST RATES CALLED EUROMARK FUTURES AND OPTIONS THE CONTRACTS ARE SIMILAR TO THE MERC'S EXISTING EURODOLLAR CONTRACTS WHICH ARE POPULAR INSTRUMENTS THAT TRACK SHORTTERM US INTEREST RATES DIFFERENT VERSIONS OF EUROMARK FUTURES AND OPTIONS CURRENTLY TRADE AT THE LONDON INTERNATIONAL FINANCIAL FUTURES EXCHANGE THE MERC'S EUROMARK CONTRACTS WILL ALSO TRADE ON THE GLOBEX AFTERHOURS TRADING SYSTEM AN EXCHANGE SPOKESWOMAN SAID 9304260125 930426 WHO'S NEWS HARRIS CORP'S FARMER IS NAMED PRESIDENT AND OPERATING CHIEF MELBOURNE FLA HARRIS CORP PROMOTED ITS EXECUTIVE VICE PRESIDENT PHILLIP W FARMER TO PRESIDENT AND CHIEF OPERATING OFFICER MR FARMER 54 YEARS OLD SUCCEEDS JOHN T HARTLEY 63 WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE EXECUTIVE VICE PRESIDENT'S POST WON'T BE FILLED MR FARMER JOINED HARRIS IN 1982 AND HAS HELD SEVERAL OPERATING POSITIONS IN JUNE 1991 HE WAS NAMED EXECUTIVE VICE PRESIDENT RESPONSIBLE FOR TWO OF THE COMPANY'S FOUR MAJOR DIVISIONS ELECTRONICS SYSTEMS AND SEMICONDUCTORS MR FARMER WHO ALSO WAS ELECTED TO THE BOARD SAID HE DOESN'T PLAN ANY MAJOR CHANGES FOR THE COMPANY WHICH MANUFACTURES ELECTRONICS AND COMMUNICATIONS SYSTEMS HE SAID HE PLANS TO CONTINUE TO EXPAND THE COMPANY'S INTERNATIONAL BUSINESS WHICH ACCOUNTS FOR ABOUT 29 OF HARRIS'S ROUGHLY 3 BILLION IN REVENUE 9304260124 930426 INTERNATIONAL WHARF HOLDINGS BID HONG KONG WHARF HOLDINGS LTD BID HK12 BILLION US1552 MILLION FOR THE 43 OF HARBOUR CENTRE DEVELOPMENT LTD IT DOESN'T OWN FUNDING THE OFFER WITH A PRIVATE SHARE PLACEMENT THE PRIVATIZATION OF HARBOUR CENTRE WOULD BRING NEARLY ALL WHARF'S HOTEL INVESTMENTS UNDER ONE MASTHEAD AND UNDERSCORES WHARF'S COMMITMENT TO EXPANDING ITS HOTEL PORTFOLIO PARTICULARLY IN THE US HARBOUR CENTRE IS A HOTELINVESTMENT COMPANY THROUGH WHICH WHARF HAS BEEN ACQUIRING HOTELS IN NORTH AMERICA 9304260123 930426 MARKETING & MEDIA BOSTON CBS AFFILIATE SELLS FOR 215 MILLION TO MIAMI BUSINESSMAN BOSTON MIAMI BUSINESSMAN EDMUND ANSIN AGREED TO BUY TELEVISION STATION WHDH FOR 215 MILLION LEAVING BOSTON WITH NO LOCALLY OWNED NETWORK AFFILIATE MR ANSIN OWNER OF SUNBEAM TELEVISION CORP WHICH OPERATES MIAMI'S WSVN TAKES CHARGE OF THE BOSTON CBS AFFILIATE AS IT HOLDS THIRD PLACE IN LATENIGHT NEWS RATINGS MR ANSIN IN A RELEASE PLEDGED TO STRENGTHEN WHDH'S NEWS PROGRAMMING BY ADDING MORE SHOWS MIAMI'S WSVN WHICH SAYS IT RANKS NO 1 IN LOCAL LATENIGHT NEWS BROADCASTS SEVEN HOURS OF LOCAL NEWS DAILY MUCH OF IT CRIMEORIENTED AND TABLOIDSTYLE THE STATION IS A FOX AFFILIATE THE SALE ENDS A LONG STRUGGLE FOR LOCAL BUSINESSMAN DAVID MUGAR AND HIS FAMILY WHICH TOGETHER HOLD A 75 STAKE IN CLOSELY HELD NEW ENGLAND TELEVISION CORP WHDH'S PARENT UNDER TERMS OF THE AGREEMENT SUBJECT TO APPROVAL BY THE FEDERAL COMMUNICATIONS COMMISSION SUNBEAM WILL ACQUIRE ALL SHARES OUTSTANDING OF NEW ENGLAND TELEVISION WHDH WON THREE CONSECUTIVE EMMY AWARDS IN 1984 THROUGH 1986 FOR BEST NEWS IN BOSTON SINCE THEN THE STATION HAS SUFFERED FROM WEAK ADVERTISING SALES AND FROM RATINGS THAT FORCED PROGRAMMING CUTBACKS A SPOKESMAN SAID MR MUGAR SOLD HIS STAKE IN ORDER TO MOVE ON TO OTHER VENTURES 9304260122 930426 INTERNATIONAL WAR OF WORDS BETWEEN US AND JAPAN OVER TRADE EXCHANGE RATES HEATS UP BY JACOB M SCHLESINGER AND QUENTIN HARDY STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO THE US AND JAPAN ARE RATCHETING UP THEIR WAR OF WORDS OVER TRADE AND EXCHANGE RATES WHILE COMMERCE SECRETARY RONALD H BROWN SAID IN TOKYO YESTERDAY THAT SOME OF JAPAN'S ARGUMENTS ON TRADE ARE DISINGENUOUS JAPANESE OFFICIALS WERE BUSY CRITICIZING THE CLINTON ADMINISTRATION'S KNOWLEDGE OF TRADE AND CURRENCY MATTERS AND ACCUSING THE US OF TRYING TO PUT JAPAN IN A CORNER I FEEL ANGER AT THE YEN'S SHARP APPRECIATION LED BY POLITICAL SPECULATION YOSHIRO MORI JAPAN'S MINISTER OF INTERNATIONAL TRADE AND INDUSTRY SAID FRIDAY MR BROWN IN AN INTERVIEW HERE CONTINUED THE CLINTON ADMINISTRATION'S CAMPAIGN OF ACCEPTING AND THEREBY MANY JAPANESE COMPLAIN ADVOCATING THE YEN'S RAPID SURGE IN VALUE AGAINST THE DOLLAR THE LATEST RUNUP BEGAN A WEEK AGO AFTER PRESIDENT CLINTON SAID A STRONGER YEN WAS ONE POSSIBLE WAY TO BRING DOWN JAPAN'S HUGE TRADE SURPLUS WITH THE US THE YEN ALSO STRENGTHENED EARLIER ON SIMILAR REMARKS BY TREASURY SECRETARY LLOYD BENTSEN AND HAS APPRECIATED ALMOST 12 THIS YEAR THE CONTEXT OF MR CLINTON'S REMARK WAS NOT APPROPRIATELY POINTED OUT MR BROWN SAID I THINK SOME OF THE ACCOUNTS OF IT FIRST WERE MISSTATED BUT MR BROWN QUICKLY ADDED THAT'S NOT TO SAY THAT THERE AREN'T A LOT OF PEOPLE WHO THINK THAT IN FACT THE APPRECIATION OF THE YEN IS ONE OF THE THINGS THAT MIGHT HELP THE TRADE DEFICIT I HAVEN'T SAID HE WAS MISINTERPRETED MR BROWN LATER SAID I SAID HIS STATEMENT WAS TAKEN OUT OF CONTEXT THAT'S DIFFERENT THAN MISINTERPRETED I THINK WE ARE WHERE WE ARE WITH EXCHANGE RATES THAT'S WHERE WE STAND ON IT MR BROWN WAS IN TOKYO TO DISCUSS TRADE ISSUES WITH JAPANESE LEADERS AND TO ATTEND A MEETING OF ECONOMIC MINISTERS FROM INDUSTRIALIZED AND FORMERLY COMMUNIST COUNTRIES EVEN THOUGH MR BROWN INSISTED THAT A STRONG YEN IS NOT THE CORNERSTONE OF OUR STRATEGY MANY JAPANESE LEADERS BY WEEK'S END WERE FUMING AT THE CLINTON ADMINISTRATION TOP OFFICIALS FEEL JAPAN'S BEING SET UP HIROSHI MITSUZUKA A LEADER OF THE RULING LIBERAL DEMOCRATIC PARTY SAID IN AN INTERVIEW FRIDAY ISN'T THE YEN BEING TALKED UP BEHIND THE SCENES BY CLINTON AIDES HE ASKED MANY JAPANESE FEAR THE YEN'S RISE WILL HURT JAPAN'S SLUMPING MANUFACTURERS BY MAKING THEIR PRODUCTS MORE EXPENSIVE IN FOREIGN MARKETS IN A PRESS BRIEFING FRIDAY A SENIOR OFFICIAL OF THE CENTRAL BANK THE BANK OF JAPAN ATTACKED NOTWELLTHOUGHTOUT COMMENTS BY US OFFICIALS SUGGESTING THEY SHOULD BE A BIT MORE CAREFUL THE OFFICIAL SPEAKING ON THE CONDITION OF ANONYMITY ALSO ISSUED A NOTTOOSUBTLE THREAT THAT JAPANESE INVESTORS MAY RETALIATE BY TAKING THEIR MONEY OUT OF THE US IF ANY COUNTRY TALKS DOWN ITS CURRENCY THAT WILL AFFECT INVESTMENT IN TOKYO ON FRIDAY MR BROWN ALSO URGED JAPAN TO ACCEPT NEW AGREEMENTS THAT WILL CALL FOR MEASURABLE RESULTS IN A NUMBER OF SPECIFIC TRADE SECTORS OVER THE PAST DECADE NO APPROACH HAS SEEMED TO WORK MR BROWN SAID IN A SPEECH TO THE AMERICAN CHAMBER OF COMMERCE IN JAPAN WHERE HE RECEIVED SUSTAINED APPLAUSE OUR GOAL IS NOT BETTER RULES IT IS DEMONSTRABLY OPEN MARKETS HE SAID MR BROWN SAID THE ADMINISTRATION'S POLICY IS STILL BEING SHAPED BUT HE NOTED THAT WASHINGTON IS CONSIDERING SINGLING OUT SEVEN SECTORS FOR IMPROVED TRADE WITH JAPAN THE SECTORS WOULD EMPHASIZE HIGHTECHNOLOGY PRODUCTS INDUSTRIES WITH HIGH EMPLOYMENT AND AREAS WHERE THE JAPANESE GOVERNMENT HAS AN IMPACT THROUGH ITS PROCUREMENT PROGRAMS HE SAID MARKET SHARE IS ONE WAY TO MEASURE PROGRESS BUT SAID THE ADMINISTRATION WOULD CONSIDER OTHER BENCHMARKS SUCH AS THE NUMBER OF JOINT VENTURES BETWEEN US AND JAPANESE COMPANIES THE NUMBER OF USMADE PARTS DESIGNED INTO JAPANESE GOODS OR SIMPLY AN INCREASE IN EXPORTS FROM THE US TO JAPAN MR BROWN SAID THE US WOULD ALSO PROBABLY SET A NUMERICAL GOAL AND TIMETABLE TO REDUCE ITS OVERALL TRADE DEFICIT WITH JAPAN WHICH WAS NEARLY 50 BILLION LAST YEAR BUT SAID THE US WOULDN'T NECESSARILY TRY TO NEGOTIATE THAT WITH JAPAN HE ADDED THE US WAS CONSIDERING WORKING WITH EUROPE AND OTHER COUNTRIES TO TRY TO CUT JAPAN'S WORLDWIDE TRADE SURPLUS NOBORU HATAKEYAMA AN AIDE TO TRADE MINISTER MORI REITERATED OVER THE WEEKEND JAPAN'S REJECTION OF NUMERICAL TARGETS MR HATAKEYAMA SAID IT'S IRONIC THAT THE US IS PUSHING JAPAN TO PLAY A GREATER ROLE IN BOOSTING IMPORTS FROM THE US AT A TIME WHEN THE US IS HELPING FORMER COMMUNIST STATES REMOVE GOVERNMENT INFLUENCE FROM THEIR ECONOMIES IT IS A LITTLE DISINGENUOUS FOR THE JAPANESE TO COMPLAIN ABOUT MANAGED TRADE MR BROWN RESPONDED I MEAN AFTER ALL THEY HAVE BEEN SOME OF THE MOST SUCCESSFUL AND OBVIOUS MANAGERS OF TRADE OVER MANY YEARS DESPITE ALL THE TOUGH TALK MR BROWN SAID HE FELT NO DETERIORATION IN USJAPAN RELATIONS AND SAID HIS MEETINGS WITH JAPANESE OFFICIALS WERE VERY CORDIAL INDEED PARTICIPANTS SAY MR BROWN'S DINNER WITH MR MORI AT A TRADITIONAL JAPANESE RESTAURANT IN TOKYO FRIDAY NIGHT WAS FRIENDLY AT ONE POINT MR MORI GOODNATUREDLY INVITED MR BROWN WHO HELPED RUN MR CLINTON'S CAMPAIGN LAST YEAR TO ADVISE JAPAN'S RULING PARTY IN FUTURE ELECTIONS MR BROWN SAID HE'D BE HAPPY TO AS SOON AS THE TWO NATIONS RESOLVE THEIR DIFFERENCES OVER TRADE ACCORDING TO MR HATAKEYAMA MR MORI THEN RESPONDED PERHAPS YOU WILL NOT BE ABLE TO COME 9304260121 930426 BUSINESS BRIEF HEINZ PLANS A FURTHER CUT OF AS MUCH AS 10 IN ITS WORLDWIDE WORK FORCE PITTSBURGH HJ HEINZ CO GRAPPLING WITH SLUGGISH PRODUCT LINES SAID IT WILL AGAIN CUT ITS WORK FORCE THIS TIME BY AS MUCH AS 10 OR 3600 EMPLOYEES CHAIRMAN ANTHONY JF O'REILLY ADDRESSING A FOOD CONFERENCE IN IRELAND SAID HEINZ'S WORLDWIDE WORK FORCE OF 36000 WILL BE CUT 8 TO 10 IN THE NEXT 18 MONTHS THE MOVE IS PART OF A COMPANYWIDE RESTRUCTURING THAT HAS ALREADY SLASHED EMPLOYMENT BY 10 SINCE SEPTEMBER 1991 A SPOKESMAN SAID HE SAID THE NEW ROUND OF CUTS WILL BE ACCOMPLISHED PARTLY THROUGH ATTRITION BUT MOSTLY THROUGH LAYOFFS MR O'REILLY WHO HAD FORECAST FISCAL 1993 NET OF 260 A SHARE RECENTLY DOWNGRADED HIS EXPECTATIONS TO 250 A SHARE CITING THE NEGATIVE IMPACT OF FOREIGN CURRENCY FLUCTUATIONS AND A WEAK WINTER SEASON FOR WEIGHT WATCHERS DIET CLASSES NONETHELESS HEINZ EXPECTS RECORD SALES OF MORE THAN 7 BILLION FOR THE FISCAL YEAR ENDED LAST APRIL HEINZ HAD NET OF 6383 MILLION OR 240 A SHARE ON SALES OF 658 BILLION BUT ANALYSTS POINT OUT THAT LAST YEAR'S EARNINGS INCLUDED 45 CENTS A SHARE IN ONETIME GAINS SOME OF THE CUTS WERE MADE IN AUSTRALIA WHERE EFFICIENCY LEVELS ARE BELOW INTERNATIONAL STANDARDS AND WHERE UNIONS HAVE AGREED TO A 20 REDUCTION AMOUNTING TO MORE THAN 300 JOBS THE HEINZ SPOKESMAN SAID THERE WILL BE NO CUTS IN PITTSBURGH WHERE THE FOOD MAKER IS BASED BECAUSE THE WORK FORCE IN THAT CITY WAS REDUCED IN THE PREVIOUS RESTRUCTURING WE'RE BENCHMARKING OURSELVES AGAINST INTERNATIONAL STANDARDS OF PRODUCTIVITY WE HAVE TO GET THE SAME CAPACITY AND THE SAME PERFORMANCE WORLDWIDE AS THE BEST OF THE BEST GET THE SPOKESMAN SAID HEINZ SAYS IT HAS HAD TO KEEP PRICES LOW AS A RESULT OF INCREASED PRIVATELABEL COMPETITION AND GREATER DEMAND BY CONSUMERS FOR LOWERPRICED GOODS GLOBALLY HEINZ FACES MORE COMPETITION AS TARIFFS AND TRADE BARRIERS COME DOWN LOW PRICING MEANT LOWER PROFIT MARGINS FORCING HEINZ TO CUT COSTS TO MAINTAIN OR INCREASE THOSE MARGINS HEINZ HIRED OUTSIDE CONSULTANTS TO ADVISE IT ON RESTRUCTURING WE REALLY HAVEN'T TAKEN A PRICE INCREASE IN THE LAST TWO YEARS AND KEPT OUR MARKET SHARES UP THE SPOKESMAN SAID WE IMPROVED OUR MARGINS WITH GREATER VOLUME AND BY GETTING COSTS CUTS HEINZ HAS GIVEN REMAINING WORKERS MORE TRAINING TO INCREASE THEIR PRODUCTIVITY AND HAS UPGRADED FACTORY MACHINERY IN SOME PLANTS TWO YEARS AGO WHEN THE RESTRUCTURING BEGAN WE SAW WHAT THE CUSTOMER REQUIRED VALUE AND A REASONABLE PREMIUM FOR BRANDS VS PRIVATE LABEL THAT'S WHAT IT TAKES TO BE SUCCESSFUL IN THE '90S THE SPOKESMAN SAYS HEINZ'S GOAL IS TO REACH A POINT AT WHICH IT IS OPERATING AT FULL CAPACITY THE SPOKESMAN SAYS DECLINING TO SAY WHERE CAPACITY IS BELOW 100 HJ HEINZ CO SAYS ITS RECENT MARKET SHARES ARE THE HIGHEST IN ITS HISTORY AND SALES ARE EXPECTED TO SHOW AN INCREASE OF MORE THAN 6 IN THE FISCAL YEAR ENDING TOMORROW THE LARGEST INCREASE IN 15 YEARS HEINZ SALES WERE INAPPROPRIATELY DESCRIBED AS SLUGGISH IN YESTERDAY'S EDITION 9304260120 930426 ECONOMY DURABLE GOODS ORDERS DECLINED 37 IN MARCH BY IAN OLGEIRSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE DECLINE IN ORDERS FOR BIGTICKET FACTORY GOODS IN MARCH THE BIGGEST DROP IN 15 MONTHS RAISED NEW QUESTIONS ABOUT THE VITALITY OF THE ECONOMIC RECOVERY ORDERS FOR DURABLE GOODS THOSE INTENDED TO LAST MORE THAN THREE YEARS FELL 37 LAST MONTH TO 13002 BILLION THE COMMERCE DEPARTMENT SAID ORDERS ROSE 22 IN FEBRUARY AND FELL 23 IN JANUARY ALTHOUGH THE DECLINE IN ORDERS WAS AGGRAVATED BY SHARP DECREASES IN THE NOTORIOUSLY VOLATILE TRANSPORTATION SECTOR IT IS PARTICULARLY SIGNIFICANT THAT THE DECLINE WAS BROADLY BASED SAID GORDON RICHARDS ECONOMIST FOR THE NATIONAL ASSOCIATION OF MANUFACTURERS THE TRANSPORTATION SECTOR TOOK THE BIGGEST HIT MOSTLY AS A RESULT OF AIRPLANE ORDERS WITH A 102 PLUNGE HOWEVER SECTORS SPARKED CONCERN BY FALLING ACROSS THE BOARD EXCEPT DEFENSE ORDERS WHICH ROSE 65 TRANSPORTATION AND DEFENSE OFTEN HAVE LARGE MONTHTOMONTH CHANGES IT'S NOT A DEEP POOL OF WEAKNESS BUT IT'S A WIDESPREAD WEAKNESS AND THAT'S A MINOR POINT OF CONCERN AT THIS TIME SAID DONALD RATAJCZAK DIRECTOR OF THE ECONOMIC FORECASTING CENTER AT GEORGIA STATE UNIVERSITY SHIPMENTS OF DURABLE GOODS CONTINUED A FIVEMONTH CLIMB RISING 07 TO 13500 BILLION HOWEVER BACKLOGS OF UNFILLED ORDERS FELL 11 TO 44741 BILLION VIRTUALLY ERASING GAINS POSTED OVER THE PREVIOUS THREE MONTHS ORDERS FOR NONDEFENSE CAPITAL GOODS CONSIDERED AN INDICATOR OF BUSINESS INVESTMENT SPENDING SLIPPED 124 EXCLUDING ERRATIC ORDERS FOR AIRCRAFT AND PARTS THESE ORDERS WERE DOWN ONLY 22 THE FIGURES ARE ADJUSTED FOR SEASONAL CHANGES THE CLINTON ADMINISTRATION CONTINUED TO SEIZE ON EVERY BIT OF GLOOMY ECONOMIC NEWS TO TWO WEAK REPUBLICANS FOR BLOCKING MR CLINTON'S STIMULUSSPENDING PLAN FROM TOKYO COMMERCE SECRETARY RON BROWN ISSUED A STATEMENT SAYING THE FIGURES PROVE THE PACE OF THE RECOVERY IS SLOWING AND THAT ACTION IS STILL NEEDED TO STIMULATE ECONOMIC GROWTH MR RATAJCZAK URGES POSTPONING PANIC ONE MONTH DOESN'T MAKE A TREND BUT THERE IS NO WAY TO SUGAR COAT THE NUMBERS IT WAS A BAD MONTH BUT IT'S ONLY A MONTH HE SAID HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES ON NEW ORDERS FOR DURABLE GOODS SEASONALLY ADJUSTED IN BILLIONS 9304260119 930426 EC INTENDS TO STUDY PLANNED ACQUISITION BY IBM FRENCH UNIT SPECIAL TO THE WALL STREET JOURNAL BRUSSELS THE EUROPEAN COMMUNITY COMMISSION SAID IT WILL LOOK INTO THE PLANNED ACQUISITION BY INTERNATIONAL BUSINESS MACHINES FRANCE OF COMPAGNIE GENERALE D'INFORMATIQUE A COMPUTER SOFTWARE AND SERVICES COMPANY THE COMMISSION SAID THE ACQUISITION OF THE FRENCH CONCERN COULD FALL UNDER ITS MERGER RULES BUT THAT IT RESERVES FINAL DECISION THE COMMISSION HAS FOUR WEEKS TO DECIDE WHETHER THE LINKUP COULD HARM COMPETITION IN EC MARKETS IF IT FINDS SERIOUS DOUBTS ABOUT THE TRANSACTION IT MUST LAUNCH A DEEPER FOURMONTH PROBE IBM FRANCE IS A UNIT OF INTERNATIONAL BUSINESS MACHINES CORP ARMONK NY 9304260117 930426 INCOME SECURITY PACKAGE SEEN AS KEY AS UAW READIES FOR CONTRACT TALKS BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT AS UNITED AUTO WORKERS OFFICIALS GATHER TO PLOT STRATEGY FOR CONTRACT TALKS THEIR TOUGHEST CHALLENGE MAY BE PROTECTING THE ELABORATE INCOMESECURITY PACKAGE WON IN 1990 BY THE TIME THE THREEYEAR AGREEMENT ENDS SEPT 14 GENERAL MOTORS CORP WILL HAVE SPENT MORE THAN 3 BILLION PROVIDING LAIDOFF WORKERS WITH VIRTUALLY FULL PAY DURING GM'S WORST FINANCIAL CRISIS SINCE THE 1920S GM CAN'T AFFORD ANOTHER CONTRACT LIKE THIS ACCORDING TO ANALYSTS THE CURRENT CONTRACT IS ONEROUS SAID SCOTT MERLIS OF MORGAN STANLEY & CO IT FORCED THE COMPANY TO GUARANTEE WAGES WHEN THEY COULD AFFORD IT THE LEAST THE UNION WILL NEGOTIATE NEW NATIONAL CONTRACTS WITH EACH OF THE BIG THREE AUTO MAKERS THIS YEAR BUT THE MOST SENSITIVE AND DIFFICULT TALKS ARE LIKELY TO BE AT GM BECAUSE OF THE SCOPE OF ITS PROBLEMS THE UAW WILL FIGHT HARD TO RETAIN THE INCOMESECURITY PACKAGE SAID UNION LEADER DICK LONG OF PONTIAC MICH WHO WILL HEAD ITS GM BARGAINING TEAM GM WOULDN'T HAVE SPENT NEARLY AS MUCH ON INCOME SECURITY HE SAYS IF IT HAD RETAINED MORE WORK IN ITS PLANTS AND RELIED LESS ON OUTSIDE SUPPLIERS THE IDEA WAS TO MAKE IT ECONOMICALLY TOUGH FOR GM TO SEND WORK OUT HE SAID INSTEAD GM PAID IDLED WORKERS TO BE NONPRODUCTIVE AND STILL PUT WORK OUTSIDE BUT GM HAS TO OUTSOURCE MORE WORK MANY ANALYSTS BELIEVE BECAUSE SUPPLIERS OFTEN PAY LESS AND THUS HAVE LOWER COSTS THE THREEDAY CONVENTION BEGINNING TODAY IN DETROIT IS THE UAW'S LAST CHANCE TO PUBLICLY DEBATE ITS BARGAINING STRATEGY IN LATE JUNE THE UNION WILL KICK OFF BARGAINING WITH EACH OF THE BIG THREE AUTO MAKERS BUT THE PROCESS DOESN'T NORMALLY REACH FULL BOIL UNTIL LATE AUGUST WHEN THE UNION ANNOUNCES WHICH OF THREE WILL BE ITS TARGET TO SET THE PATTERN FOR THE INDUSTRY THIS YEAR REGARDLESS OF WHICH COMPANY IS CHOSEN GM'S PRESSING NEEDS WILL SHAPE THE TALKS THE BIG THREE HAVE REPEATEDLY SAID THEY NEED RELIEF IN HEALTHCARE COSTS ON WHICH THEY COLLECTIVELY SPENT 6 BILLION LAST YEAR BUT UNION MEMBERS AND LEADERS HAVE MADE CLEAR THEY WILL STRIKE IF THE COMPANIES TRY TO SLASH HEALTH BENEFITS MANY ANALYSTS SUSPECT THE AUTO MAKERS WILL BE FORCED TO WAIT FOR CONGRESS TO ENACT NATIONAL HEALTHCARE REFORM AS A RESULT MOST OF THE ACTION THIS TIME AROUND IS LIKELY TO BE ON THE INCOMESECURITY ISSUE SAID HARLEY SHAIKEN A LABOR EXPERT AT THE UNIVERSITY OF CALIFORNIA AT SAN DIEGO THAT'S WHAT HAPPENED IN THE LAST CONTRACT AT THE TIME GM'S 33 BILLION PLEDGE TO PROVIDE INCOMESECURITY PAYMENTS FOR ITS WORKERS WAS REGARDED AS A GOLDEN HANDSHAKE THAT WOULD ALLOW THE COMPANY TO SMOOTHLY TRIM ITS BLOATED WORK FORCE THE IDEA WAS TO PROVIDE A BRIDGE FOR WORKERS WHO HAD TEMPORARILY LOST THEIR JOBS BECAUSE OF PRODUCTIVITY IMPROVEMENTS SAID MR SHAIKEN WHO ARGUES GM WOULD HAVE BEEN HAMSTRUNG BY LABOR TURMOIL WITHOUT THE SAFETY NET WHAT GM DIDN'T FORSEE WAS A DRASTIC DOWNTURN IN CAR SALES THAT LANDED THOUSANDS OF AUTO WORKERS ON THE UNEMPLOYMENT ROLLS SUDDENLY THE INCOMESECURITY NET BECAME FAR MORE COSTLY THAN GM HAD ENVISIONED A CERTAIN TYPE OF DOWNTURN MAKES NEARLY ANY INCOMESECURITY PACKAGE UNAFFORDABLE SAID MORGAN STANLEY'S MR MERLIS THIS YEAR HE SAID THE AUTO MAKERS SHOULD INSIST ON CIRCUIT BREAKERS THAT CUT INCOMESECURITY PAYMENTS IN TIMES OF SEVERE DOWNTURNS 9304260116 930426 FOKKER UNION REACH AGREEMENT ON JOB CUTS SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM DUTCH AIRCRAFT MAKER FOKKER NV SAID IT HAS REACHED AN AGREEMENT IN PRINCIPLE WITH COMPANY UNIONS ON PREVIOUSLY ANNOUNCED PLANS TO SHED 2118 JOBS AT THE COMPANY THIS YEAR THE PARTIES AGREED TO 1395 LAYOFFS THROUGHOUT THE YEAR A LOWER NUMBER THAN THE 1790 ORIGINALLY ENVISIONED BY FOKKER WHEN THE JOB CUTS WERE ANNOUNCED IN MARCH THE JOB CUTS ARE ONE OF A NUMBER OF MEASURES INTENDED TO HELP THE CASHSTRAPPED INDUSTRY CUT LOSSES AND COSTS FOKKER HAS BEEN HARD HIT BY THE WEAKNESS IN THE WORLD PASSENGER AIR TRAVEL MARKET THE COMPANY IS SET TO BE TAKEN OVER BY DEUTSCHE AEROSPACE THE DEFENSE AND AEROSPACE ARM OF GERMAN INDUSTRIAL GIANT DAIMLERBENZ AG FOKKER SAID THE PARTIES ALSO HAD AGREED ON TEMPORARILY SHORTENED WORK WEEKS IN SELECTED UNITS AND LOCATIONS AND ON REQUESTS FOR ELIGIBLE EMPLOYEES TO TAKE ADVANTAGE OF AN EARLY RETIREMENT OFFER 9304260115 930426 FORMER BANK OFFICERS AGREE TO A PAYMENT TO SETTLE FDIC SUIT WASHINGTON FORMER OFFICERS OF THE FAILED NATIONAL BANK OF WASHINGTON AGREED TO PAY 500000 TO SETTLE A LAWSUIT BY THE FEDERAL DEPOSIT INSURANCE CORP AN FDIC OFFICIAL SAID THE SETTLEMENT IS EXPECTED TO BE FILED HERE TODAY IN FEDERAL COURT THE FDIC HAD BROUGHT SUIT AGAINST SEVERAL OFFICERS OF THE BANK WHICH WAS ACQUIRED IN 1990 BY RIGGS NATIONAL CORP OF WASHINGTON ALLEGING NEGLIGENCE AND BREACH OF DUTY CHARGES AGAINST MOST OF THE BANK OFFICERS WERE DISMISSED EARLIER THIS YEAR THE FDIC OFFICIAL SAID THE PARTIES TO THE SETTLEMENT INCLUDED LUTHER HODGES JR NBW'S FORMER CHAIRMAN AND ROBERT WASHINGTON JR A FORMER DIRECTOR OF THE BANK HE COULDN'T CONFIRM A REPORT IN SATURDAY'S WASHINGTON POST THAT SEVERAL OTHER NBW OFFICIALS WERE INCLUDED IN THE SETTLEMENT 9304260114 930426 RENAISSANCE ENERGY ISSUE SNAPPED UP BY INVESTORS AS NATURAL GAS PRICES RISE BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL CANADIAN US AND EUROPEAN INVESTORS SCRAMBLED TO PARTICIPATE IN THE LATEST EQUITY ISSUE BY ONE OF CANADA'S FASTESTGROWING OIL AND GAS CONCERNS RENAISSANCE ENERGY LTD THE ISSUE OF 75 MILLION NEW TREASURY SHARES BY RENAISSANCE WAS SNAPPED UP IN ONLY A FEW HOURS UNDERWRITERS AND COMPANY OFFICIALS SAID THE ISSUE WILL RAISE A TOTAL OF 198 MILLION CANADIAN DOLLARS US1568 MILLION FOR RENAISSANCE AFTER UNDERWRITERS' FEES WHICH THE COMPANY PLANS TO USE TO FINANCE AN EXPANDED OIL AND GAS EXPLORATION AND DEVELOPMENT PROGRAM THIS YEAR SEPARATELY ON FRIDAY RENAISSANCE REPORTED NET INCOME OF C101 MILLION OR 13 CANADIAN CENTS A SHARE FOR THE FIRST QUARTER OF 1993 UP SHARPLY FROM C1 MILLION OR TWO CANADIAN CENTS A SHARE A YEAR EARLIER RENAISSANCE WHICH HAD CALLED FOR ITS CASH FLOW TO REACH C200 MILLION AND ITS CAPITAL SPENDING BUDGET TO TOTAL ABOUT C260 MILLION IN 1993 NOW EXPECTS TO SEE SIGNIFICANT INCREASES IN BOTH OF THOSE FIGURES THANKS TO HIGHER NATURAL GAS PRICES SAID JOHN THOMSON CHIEF FINANCIAL OFFICER HE DECLINED TO GIVE SPECIFIC FORECAST FIGURES CITING REGULATORY RESTRICTIONS BUT ADDED THE COMPANY'S REVISED CAPITAL SPENDING PLANS CALL FOR THE DRILLING OF 1000 NEW WELLS COMPARED WITH 739 WELLS IN 1992 AND AN ORIGINAL 1993 FORECAST OF 800 NEW WELLS THE MAJORITY OF THE SPENDING WILL BE EARMARKED FOR NATURAL GAS PROSPECTS HE SAID PROSPECTS ARE VERY VERY GOOD RIGHT NOW AND WE'D LIKE TO BE IN A FINANCIAL POSITION TO TAKE FULL ADVANTAGE OF THESE MR THOMSON SAID REFERRING TO RISING NATURAL GAS PRICES AND DECLINING GAS DELIVERABILITY IN THE PROVINCE OF ALBERTA RENAISSANCE HAS LONG BEEN ONE OF THE MOST ACTIVE DRILLERS IN CANADA'S OIL PATCH PLOWING ITS CASH FLOW FROM OPERATIONS AND PROCEEDS FROM A SERIES OF EQUITY ISSUES BACK INTO EXPLORATION IN 1992 ALONE ITS OIL PRODUCTION ROSE 39 OVER 1991 LEVELS WHILE GAS OUTPUT JUMPED 21 WITH HIGHER COMMODITY PRICES KICKING IN SOME ANALYSTS ARE CALLING FOR THE COMPANY'S EARNINGS TO REACH ABOUT 57 CANADIAN CENTS A SHARE IN 1993 COMPARED WITH THE C246 MILLION OR 35 CANADIAN CENTS A SHARE IT EARNED IN 1992 MR THOMSON SAID RENAISSANCE PLANS TO STICK TO ITS GAME PLAN INVESTING FUNDS ONLY IN ITS ALBERTA OIL AND GAS PROPERTIES WE'RE NOT LOOKING AT ANY ACQUISITIONS AND WE'VE GOT NO PLANS TO GO INTERNATIONAL HE SAID THERE ARE PLENTY OF OPPORTUNITIES RIGHT WHERE WE ARE RENAISSANCE'S SHARE PRICE LIKE ITS CASH FLOW AND EARNINGS HAS SEEN GROWTH IN RECENT MONTHS THE COMPANY LAST ISSUED EQUITY IN APRIL 1992 QUICKLY SELLING OUT AN EIGHT MILLION SHARE OFFERING AT C13 A SHARE STOCK SOLD UNDER THE CURRENT OFFERING WHICH IS EXPECTED TO CLOSE MAY 19 IS PRICED AT C2750 A SHARE IN TRADING ON THE TORONTO STOCK EXCHANGE FRIDAY RENAISSANCE CLOSED AT C2825 A SHARE DOWN 375 CANADIAN CENTS AT LAST REPORT RENAISSANCE HAD 753 MILLION COMMON SHARES OUTSTANDING THE ISSUE IS BEING SOLD BY A GROUP OF UNDERWRITERS HEADED BY BUNTING WARBURG TORONTO AN INVESTMENT DEALER 9304260113 930426 SUEZ SAYS BELGIAN UNIT WILL SHOW RISE IN NET FOR '93 AFTER '92 DROP SPECIAL TO THE WALL STREET JOURNAL BRUSSELS THE CHAIRMAN OF FRENCH FINANCIAL GROUP SUEZ ET CIE SAID PROFIT FROM BELGIAN SUBSIDIARY SOCIETE GENERALE DE BELGIQUE WASN'T SATISFACTORY IN 1992 BUT SHOULD NEARLY DOUBLE DURING THE CURRENT YEAR I WOULD EXPECT PROFITS OF BETWEEN 12 BILLION BELGIAN FRANCS 3629 MILLION AND 14 BILLION FRANCS SAID SUEZ CHAIRMAN GERARD WORMS I DON'T THINK THAT IS AN UNREASONABLE DEMAND AT THE MOMENT WE ONLY HAVE PROFITS FROM AROUND HALF OF THE PORTFOLIO SGB 1992 NET INCOME FELL 18 TO 62 BILLION BELGIAN FRANCS ALTHOUGH RECURRING PROFIT ROSE 38 TO 61 BILLION FRANCS INDUSTRIAL UNITS SUCH AS FOAM RUBBER COMPANY RECTICEL SA AND NONFERROUS METALS COMPANY UNION MINIERE SA SHOULD BE CONTRIBUTING PROFITS IN THREE TO FOUR YEARS MR WORMS SAID HE SAID HE DIDN'T ENVISAGE CHANGING SUEZ'S 61 STAKE IN SGB UP OR DOWN MR WORMS REPEATED EARLIER COMMENTS THAT FINANCIAL SERVICES ARE SUEZ'S MAIN ACTIVITY WE DON'T EXPECT TO BE AN INDUSTRIAL GROUP LIKE SAINTGOBAIN SIEMENS OR SOLVAY HE ADDED SEPARATELY REFERRING TO SPECULATION THAT SGB'S TRACTEBEL SA WOULD SELL ITS 114 STAKE IN PETROFINA MR WORMS SAID IT IS NOT AT ALL PROBABLE WE WILL SELL PETROFINA IT IS NOT A GOOD MOMENT TO GET OUT HE ADDED 9304260111 930426 WHO'S NEWS DIED MAX O WEBER 63 RETIRED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF OWENSCORNING FIBERGLAS CORP SATURDAY IN TOLEDO OHIO OF CANCER 9304260110 930426 PERELMAN RAISES OFFER FOR MARVEL TO 30 A SHARE BY ANNE NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTOR RONALD O PERELMAN WAS PRESSURED FRIDAY TO RAISE TO 30 A SHARE FROM 25 A SHARE HIS TENDER OFFER AIMED AT GIVING HIM ABOUT 80 CONTROL OF MARVEL ENTERTAINMENT GROUP INC THE CONCESSION IS LIKELY TO WIN OVER INVESTORS WHO BALKED AT THE EARLIER OFFER ANALYSTS AND ARBITRAGERS SAY MR PERELMAN WHO ALREADY CONTROLS 60 OF THE COMICBOOK PUBLISHER THROUGH HIS HOLDING COMPANY MACANDREWS & FORBES HOLDINGS INC RAISED HIS BID FOR THE NEARLY 20 ADDITIONAL STAKE AFTER INVESTORS THUMBED THEIR NOSES AT AN OFFER BEGUN LAST MONTH FOR 11 MILLION SHARES ONLY 36 MILLION SHARES WERE TENDERED BY THURSDAY NIGHT THE OFFER'S ORIGINAL DEADLINE PROMPTING MR PERELMAN'S COMPANY FRIDAY MORNING TO EXTEND THE DEADLINE TO TODAY JUST A FEW HOURS LATER HE BOOSTED HIS OFFER BY 5 A SHARE REDUCED TO 10 MILLION THE NUMBER OF SHARES HE IS WILLING TO BUY AND EXTENDED THE DEADLINE TO MAY 6 MR PERELMAN APPARENTLY CAN AFFORD THE HIGHER PRICE MACANDREWS & FORBES RAISED 289 MILLION LAST WEEK FROM A PRIVATE PLACEMENT OF SENIOR SECURED ZERO COUPON NOTES A SPOKESMAN SAID THE SWEETENED OFFER WILL COST MR PERELMAN ABOUT 300 MILLION BEFORE EXPENSES COMPARED WITH 285 MILLION INCLUDING FEES AND EXPENSES THAT HE HAD PLANNED TO PAY UNDER THE ORIGINAL OFFER MARVEL'S SHARES ROSE 2625 TO 27625 APIECE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY ANALYSTS AND ARBITRAGERS SAID THEY EXPECT THE HIGHER PRICE WILL FETCH MR PERELMAN THE CONTROL HE SEEKS SG WARBURG & CO ANALYST LISBETH BARRON WHO EARLIER ADVISED HER CLIENTS NOT TO TENDER THEIR MARVEL SHARES AT 25 EACH CALLED 30 A SHARE A FAIR PRICE AND SAID SHE'S NOW ADVISING SHORTTERM INVESTORS TO TENDER THEIR SHARES LONGERTERM INVESTORS HOWEVER MAY WANT TO HOLD ON TO THEIR SHARES MS BARRON SAID ESTIMATING MARVEL'S STOCK COULD SOAR WELL ABOVE 30 A SHARE IN 1994 AS THE COMPANY PREVIOUSLY SAID IT EXPECTS A 34 JUMP IN PROFIT NEXT YEAR THE PRICE ALSO APPEARS FAIR TO INVESTORS WHEN COMPARED WITH OTHER STOCKS ACCORDING TO FIRST BOSTON CORP ANALYST HARRY DEMOTT WHO SAID HE ALSO WOULD ADVISE INVESTORS TO TENDER THEIR SHARES AT 30 APIECE HE SAID MR PERELMAN IS VALUING THE MARVEL SHARES AT A PRETTY GOOD PREMIUM AT ABOUT 21 TIMES NEXT YEAR'S ESTIMATED EARNINGS OF 145 A SHARE EVEN AT THE HIGHER PRICE THE TENDER OFFER WILL STILL REAP MR PERELMAN TAX BENEFITS THE ANALYSTS ADDED HE CAN CONSOLIDATE THE TAX BILLS OF MACANDREWS & FORBES AND MARVEL AND WOULD CONSOLIDATE MARVEL'S EARNINGS WITH THOSE OF ITS PARENT THOSE EARNINGS WOULD BE OFFSET BY MACANDREWS & FORBES'S TAXLOSS CARRYFORWARDS AMONG OTHER THINGS 9304260109 930426 FINANCING BUSINESS FINNING LTD FINNING LTD VANCOUVER BRITISH COLUMBIA SAID IT EXPECTS TO RAISE 576 MILLION CANADIAN DOLLARS US455 MILLION FROM THE SALE OF 3750000 SHARES TO A GROUP OF UNDERWRITERS FINNING SAID IT WILL USE PROCEEDS TO REDUCE DEBT AND FINANCE THE FUTURE OPERATIONS OF GILDEMEISTER SAC A CHILEAN COMPANY THAT FINNING PLANS TO ACQUIRE BOTH FINNING AND GILDEMEISTER ARE DISTRIBUTORS OF TRACTORS AND OTHER PRODUCTS MANUFACTURED BY CATERPILLAR INC PEORIA ILL THE SHARE ISSUE IS SUBJECT TO REGULATORY APPROVAL FINNING CURRENTLY HAS 337 MILLION SHARES OUTSTANDING 9304260108 930426 SECURITIES FIRM SUES THE NASD OVER ARBITRATION PRUDENTIAL TURNS TO COURT TO BAR FORCED DISCLOSURE OF A LAW FIRM'S REPORT BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC SUED THE NATIONAL ASSOCIATION OF SECURITIES DEALERS AFTER THE BROKERAGE FIRM WAS ORDERED TO TURN OVER SENSITIVE DATA IN AN NASD ARBITRATION CASE THE SUIT FILED IN A NEW YORK STATE COURT SEEKS TO BAR THE NASD FROM FORCING PRUDENTIAL SECURITIES FROM DISCLOSING A CONFIDENTIAL REPORT PREPARED BY A LAW FIRM COUNSELING THE BROKERAGE HOUSE IN AN ENERGYPARTNERSHIP CASE IT'S NOT EVERY DAY THAT A BIG BROKERAGE FIRM TAKES THE NASD THE INDUSTRY'S MAJOR SELFREGULATOR TO COURT BUT THE FILING ALSO APPEARS TO IGNORE THE NASD'S ARBITRATION CODE WHICH SAYS NO PARTY SHALL DURING THE ARBITRATION OF ANY MATTER PROSECUTE OR COMMENCE ANY SUIT ACTION OR PROCEEDING AGAINST ANY OTHER PARTY TOUCHING UPON ANY OF THE MATTERS REFERRED TO ARBITRATION PURSUANT TO THIS CODE THE NASD SAYS IT HASN'T SEEN THE SUIT AND CAN'T COMMENT ON IT BUT KENNETH L ANDRICHIK THE NASD'S DEPUTY DIRECTOR OF ARBITRATION SAYS THE INTENT OF THE NASD ARBITRATION CODE ESSENTIALLY IS TO PREVENT THE MERITS OF AN ARBITRATION CASE TO BE ARGUED IN MORE THAN ONE FORUM PRUDENTIAL'S ACTION APPEARS TO BE A BID TO CIRCUMVENT TRADITIONAL ARBITRATION RULES WHICH SPECIFICALLY REQUIRE A PARTY IN AN ARBITRATION DISPUTE TO PRODUCE ANY DOCUMENT IN HIS POSSESSION OR CONTROL AS DIRECTED LAWYERS IN THE CASE SAID IT'S DISTRESSING FOR INVESTORS EVERYWHERE THAT AFTER SPENDING SO MUCH TIME AND MONEY COMPELLING INVESTORS TO ARBITRATION BROKERAGE FIRMS LIKE PRUDENTIAL TRY TO RUN TO COURT AS SOON AS THEY DON'T LIKE SOMETHING THAT HAPPENS IN ARBITRATION SAYS J BOYD PAGE OF PAGE & BACEK AN ATLANTA LAW FIRM THAT REPRESENTS THE CLAIMAINT IN THE ARBITRATION CASE IN QUESTION MR PAGE ALSO IS A MEMBER OF THE NASD'S NATIONAL ARBITRATION COMMITTEE WE'RE NOT LOOKING TO STAY THE ARBITRATION AT ALL OR INTERRUPT THE PROCESS SAYS A SPOKESMAN FOR THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT WE'RE SIMPLY LOOKING TO MAKE A LEGAL POINT AND MAKE SURE WE RETAIN THIS ATTORNEYCLIENT PRIVILEGE WITH THIS DOCUMENT THE CASE COMES AS PRUDENTIAL SECURITIES THE NATION'S FOURTHLARGEST BROKERAGE FIRM FACES A NUMBER OF LEGAL CLAIMS INVOLVING THE SALE OF ENERGY LIMITED PARTNERSHIPS IN THE 1980S THE BIGGEST CASE A CLASSACTION SUIT BROUGHT BY 130000 INVESTORS IN A NEW ORLEANS FEDERAL COURT IS PENDING PRUDENTIAL SECURITIES PLANS TO WITHDRAW A SETTLEMENT PROPOSAL IT MADE IN THE CASE AFTER A FEDERAL JUDGE SAID HE HAD SERIOUS RESERVATIONS ABOUT THE FIRM'S SETTLEMENT PLAN THE STAKES ARE HIGH MANY SIMILAR NASD ARBITRATION PROCEEDINGS ARE PENDING PRUDENTIAL SAYS CLAIMANTS IN MANY OF THESE ALREADY DEMANDED PRODUCTION OF THE REPORT AND ADDITIONAL REQUESTS IN OTHER ARBITRATIONS ARE INEVITABLE PRUDENTIAL SAID IN PAPERS FILED WITH THE NEW YORK STATE COURT ABSENT A DECLARATORY JUDGMENT PRUDENTIAL SECURITIES HAS NO EFFECTIVE MEANS OF PRESERVING THE CONFIDENTIALITY OF THE REPORT THE PAPERS SAID IN THE SUIT PRUDENTIAL SAYS TWO NASD ARBITRATION PANELS HAVE HELD THAT THE CONFIDENTIAL REPORT IS PRIVILEGED AND CAN BE KEPT SECRET BUT A THIRD NASD PANEL RECENTLY ORDERED PRUDENTIAL SECURITIES TO PRODUCE THE ENTIRE REPORT TO THE CLAIMANT IN AN ARBITRATION AND THEN AMENDED THE ORDER TO FORCE PRUDENTIAL TO PRODUCE PART OF THE REPORT TO THE CLAIMANT AND THE REST TO THE ARBITRATOR ACCORDING TO PAPERS FILED IN THE CASE PRUDENTIAL SAID IT WON THE EARLIER NASD RULINGS AFTER THE FIRM OBJECTED ON GROUNDS OF ATTORNEYCLIENT PRIVILEGE AND ATTORNEY WORK PRODUCT THE FIRM SAYS IT DESERVES A DECLARATORY JUDGMENT FROM THE NEW YORK STATE COURT BECAUSE IT CAN'T OBTAIN A SINGLE DEFINITIVE RULING WHICH WOULD APPLY TO ALL SUCH ARBITRATIONS DECISIONS OF SECURITIESARBITRATION CASES SUCH AS THOSE FILED WITH THE NASD ARE BINDING BUT DON'T HAVE PRECEDENTIAL VALUE BY CONTRAST STATE AND FEDERALCOURT RULINGS CAN BE CITED AS LEGAL PRECEDENT IN SUBSEQUENT CASES THE NASD HAS NO MECHANISM FOR PARTIES TO APPEAL DECISIONS WITHIN ARBITRATION CASES ANY RIGHT TO APPEAL DISCOVERY ORDERS AT THE CONCLUSION OF ARBITRATION PROCEEDINGS WILL NOT PROTECT PRIVILEGED DOCUMENTS SUCH AS THE REPORT WHICH HAVE ALREADY BEEN ORDERED TO BE PRODUCED PRUDENTIAL SAYS IN ITS COURT PAPERS THE CONFIDENTIAL REPORT WAS PREPARED IN EARLY 1988 TO ASSIST PRUDENTIAL EXECUTIVES IN ANALYZING AND EVALUATING THE ALLEGATIONS DURING NEGOTIATIONS WITH TWO TEXAS REALESTATE DEVELOPERS AND MANAGING GENERAL PARTNERS OF SEVERAL LIMITED PARTNERSHIPS MARKETED BY PRUDENTIAL ACCORDING TO THE COURT PAPERS PRUDENTIAL WHICH SAYS THE REPORT IS LABELED PRIVILEGED AND CONFIDENTIAL SAYS NO PORTION OF THE DOCUMENT HAS BEEN PROVIDED TO ANY PERSON OTHER THAN TO MEMBERS OF PRUDENTIAL SECURITIES' INHOUSE LEGAL STAFF AND TO OUTSIDE COUNSEL RETAINED BY THE FIRM IN CONNECTION WITH ONGOING AND THREATENED LITIGATION 9304260107 930426 CORPORATE FOCUS SEEDCORN LEADER PIONEER LOOKS FOR GREENER PASTURES AS PROFITS FLATTEN COMPANY CULTIVATES BIOTECHNOLOGY OVERSEAS BUSINESS BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL DES MOINES IOWA THE PROFIT RISE IS COOLING AT PIONEER HIBRED INTERNATIONAL INC AND THAT SPELLS ONE THING A LOOMING SHAKEOUT IN THE 15 BILLIONAYEAR DOMESTIC SEEDCORN INDUSTRY AFTER NEARLY DOUBLING SINCE FISCAL 1990 EARNINGS AT THE NATION'S BIGGEST CORN GENETICS COMPANY ARE PROJECTED TO RISE ONLY ABOUT 4 IN THE YEAR ENDING AUG 31 ANALYSTS EXPECT NET INCOME OF 158 MILLION OR 175 A SHARE COMPARED WITH 1522 MILLION OR 168 A SHARE LAST YEAR MORE THAN HALF OF PIONEER'S REVENUE WHICH WAS 126 BILLION LAST YEAR HINGES ON THE NUMBER OF ACRES PLANTED BY US CORN FARMERS THAT ACREAGE IS EXPECTED TO SHRINK ABOUT 4 THIS YEAR THE FIRST DECLINE IN SIX YEARS TO 765 MILLION ACRES THE LONGTERM FORECAST FOR US CORN ACREAGE IS GRIM CUSTOMERS AND COMPETITORS AROUND THE GLOBE ARE RAISING MORE GRAIN CUTTING DEMAND FOR AMERICA'S BIGGEST CROP EXPORTS OF CORN FROM CHINA AND ARGENTINA HAVE MORE THAN DOUBLED OVER THREE YEARS WHILE US CORN EXPORTS HAVE SUNK THE OUTLOOK FOR STAGNANT CORN ACREAGE HITS PIONEER ESPECIALLY HARD BECAUSE THE COMPANY PROVIDES ABOUT 39 OF THE SEED USED BY US CORN FARMERS A MARKET SHARE ABOUT SIX PERCENTAGE POINTS HIGHER THAN JUST THREE YEARS AGO AND FOUR TIMES THE SHARE OF ITS NEAREST RIVAL TO KEEP GROWING PIONEER HAS LITTLE CHOICE BUT TO WRESTLE EVEN MORE BUSINESS AWAY FROM ITS COMPETITION WHILE EXECUTIVES SHY FROM SETTING A TARGET THEY SAY HALF OF THE MARKET IS OBTAINABLE PIONEER'S VARIETIES OUTPERFORMED THE INDUSTRY AVERAGE BY EIGHT BUSHELS AN ACRE LAST YEAR AND WERE PARTICULARLY STRONG IN A BELT RUNNING FROM SOUTHERN NEBRASKA TO CENTRAL ILLINOIS ACCORDING TO WALL STREET ANALYSTS DEKALB GENETICS CORP OF DEKALB ILL PROBABLY HAS THE RESEARCH MUSCLE TO PROTECT ITS NO 2 RANKING BUT IT'S UNCLEAR HOW MUCH THE COMPANY CAN EXPAND ITS MARKET SHARE OF ROUGHLY 9 THE HUNDREDS OF MOMANDPOP SEED COMPANIES THAT HAVE ABOUT 40 OF THE MARKET WILL TRY TO HOLD THEIR GROUND BY TARGETING NICHES AND DISCOUNTING PRICES PIONEER'S BATTLE WILL BE WITH THE MIDDLETIER BRANDS SUCH AS NORTHRUP KING GARST AND FUNK THAT HOLD THE REMAINDER OF THE MARKET THE CHEMICAL INDUSTRY BOUGHT MANY OF THESE COMPANIES WITH THE INTENTION OF USING THE BIOTECHNOLOGY CREATED IN PHARMACEUTICAL LABORATORIES TO MAKE WONDER CROPS BUT SCIENTISTS ARE LEARNING THAT MAIZE MATING MIGHT INVOLVE HUNDREDS OF SCATTERED GENES WITH FLUCTUATING ROLES THAT IS TOO COMPLICATED FOR BIOTECHNOLOGY WHICH CAN HANDLE ONLY A FEW GENES AT A TIME BIOTECHNOLOGY CAN DO LESS THAN WHAT A LOT OF PEOPLE CLAIMED 10 YEARS AGO SAYS KEITH HOFFMAN MARKETING VICE PRESIDENT AT NORTHRUP KING CO PART OF THE SEED DIVISION OF SANDOZ LTD OF SWITZERLAND ANALYSTS SAY SOME CHEMICAL COMPANIES MIGHT PULL UP ROOT SOON THAT'S FORTUNATE FOR PIONEER BECAUSE CORN IS SOMEWHAT OF A GOLDEN LEASH WHILE THE COMPANY TRIES TO EXPAND INTO SUCH ALTERNATIVE PLANTS AS CANOLA AND VEGETABLES CORN CONTINUES TO GENERATE 80 OF ITS WORLDWIDE SALES AND NEARLY ALL PRETAX PROFIT CORN IS THE CROWN JEWEL SAYS JACK CAVANAH VICE PRESIDENT AND DIRECTOR OF INTERNATIONAL RESEARCH IT WILL DOMINATE THE CROPS WE SELL WHAT SELLS HYBRID SEED CORN IS YIELD CORN YIELDS HAVE QUADRUPLED SINCE HENRY A WALLACE FOUNDED PIONEER IN 1926 BIOTECHNOLOGY ISN'T REPLACING TRADITIONAL BREEDING WHICH IS PIONEER'S FORTE BUT PROBES THAT FIND AND FLAG A SPECIFIC GENE IN THE LABORATORY ARE REDUCING THE GUESSWORK IN FINDING THE RIGHT MIX OF PARENT STRAINS TO MAKE A NEW LINE THE PROBES ALSO ARE ALLOWING SCIENTISTS TO MAP A CROP'S GENETIC BLUEPRINT OR GENOME TO LOCATE GENES THAT NATURALLY RESIST PESTS OR REGULATE THE PRODUCTION OF CHEMICALS PIONEER HAS DOUBLED ITS BIOTECHNOLOGY BUDGET TO 11 MILLION IN THREE YEARS AND PLANS MORE INCREASES THIS IS A RACE SAYS RICHARD MCCONNELL PIONEER VICE PRESIDENT AND DIRECTOR OF NORTH AMERICAN RESEARCH IF SOMEBODY LOCKS UP A GENE THEY CAN BLOCK US FROM USING IT OR FORCE US TO PAY FOR IT THAT'S ANOTHER REASON PIONEER WANTS A BIG MARKET SHARE A SMALL SEED FIRM MIGHT SHARE WITH PIONEER A PATENT FOR SAY THE GENE THAT REPELS A BUG IF THAT GENERATES MORE REVENUE THAN HAWKING THE GENE THROUGH ITS OWN SLIVER OF THE MARKET AND EVEN A BREAKTHROUGH GENE NEEDS HIGHYIELDING GERMPLASM TO WIN FARMERS THE COMPETITIVE ADVANTAGE OF PIONEER IS THAT IT HAS THE GERMPLASM YOU WANT TO SHOOT YOUR GENES INTO SAYS MICHAEL LEE AN ASSOCIATE PROFESSOR OF AGRONOMY AT IOWA STATE UNIVERSITY THE BIG PRIZE ARE GENES THAT WOULD INCREASE THE LEVELS OF SOCALLED BIOCHEMICALS BECAUSE INDUSTRIAL USE IS PROBABLY THE ONLY WAY US CORN ACREAGE WILL EVER BOOM AGAIN ABOUT 15 OF THE CROP IS REFINED AND FERMENTED TO MAKE EVERYTHING FROM FRUCTOSE SWEETENER AND FUEL ETHANOL TO CITRIC ACID WHICH HAS HELPED CUSHION THE DECLINE IN US EXPORTS ENGINEERING CORN TO MAKE MORE STARCH AND SPECIAL OILS WOULD MAKE INDUSTRIAL USE MORE ECONOMICAL IN THE MEANTIME PIONEER'S STRATEGY IS TO FOLLOW CORN ACREAGE OVERSEAS IF PRESENT TRENDS CONTINUE ABOUT 85 OF THE WORLD'S CORN ACREAGE WILL BE OUTSIDE THE US BY THE YEAR 2000 COMPARED TO 78 NOW AND WHILE THE US IS SATURATED WITH HYBRID SEED VARIETIES MANY FARMERS IN THE DEVELOPING WORLD STILL GROW THEIR OWN AND GET ONETHIRD THE YIELD IN THE US WE HAVE TO TAKE HYBRID BUSINESS AWAY FROM SOMEBODY SAYS EDWARD T SHONSEY A PIONEER SENIOR VICE PRESIDENT OUTSIDE THE US WE CAN CONVERT FARMERS TO HYBRID SEED STILL OVERSEAS MARKETS ARE FRAUGHT WITH PITFALLS CORN ACREAGE IN THE EUROPEAN COMMUNITY FOR EXAMPLE IS SEEN DROPPING BETWEEN 6 AND 8 THIS SPRING AS THE BUDGETSTRAPPED BLOC REFORMS ITS FARM PROGRAM AND THE US SEED CORN INDUSTRY HAS HAD ONLY LIMITED SUCCESS IN THE PAST IN THE DEVELOPING WORLD THE HUNDREDS OF HYBRIDS SOLD IN THE US MARKET ARE MOSTLY WORTHLESS THERE WHERE THE SOIL WEATHER LENGTH OF DAYLIGHT AND PLANT DISEASES ARE DIFFERENT THE RULE OF THUMB IS THAT FARMERS WON'T SWITCH TO A HYBRID UNTIL THE YIELD IS 30 HIGHER THAN THE SEED THEY SAVE FROM THEIR FIELDS WHICH CAN TAKE SEVERAL YEARS TO DEVELOP THE COMPANY'S WORK OVERSEAS WOULD HELP US AGRICULTURE IF IT UNCOVERS NEW DISEASERESISTANT GENES ALTHOUGH SOME FARMERS WORRY THAT SUCCESS WILL FUEL THE GLOBAL SELFSUFFICIENCY TREND THAT IS CRIMPING THE US CORN BELT PIONEER EXECUTIVES SAY THEY HAVE LITTLE CHOICE IT'S HARD EVERYWHERE TO GET BUSINESS SAYS THOMAS N URBAN PIONEER CHAIRMAN AND PRESIDENT THAT'S PARTLY BECAUSE WE'RE OUR OWN BIGGEST OBSTACLE 9304260106 930426 TRAVELERS CORP TO PAY 80 MILLION TO SETTLE PENSION FUNDS' SUIT HARTFORD CONN TRAVELERS CORP SAID IT HAS AGREED TO PAY INVESTORS IN ITS SEPARATE ACCOUNT R REAL ESTATE FUND 80 MILLION AS SETTLEMENT OF A CLASSACTION LAWSUIT THEY FILED SEVERAL YEARS AGO THE SETTLEMENT WHICH REQUIRES COURT APPROVAL MARKS ONE OF THE FIRST TIMES THAT PENSION FUNDS' LOSSES ON INVESTMENTS IN REAL ESTATE FUNDS HAVE BEEN PARTLY COVERED BY THE INSURER THAT MANAGED THE ASSETS THE PENSION FUNDS CHARGED IN THE SUIT THAT TRAVELERS MISHANDLED THE REAL ESTATE FUND WHICH TURNED INTO A PROBLEM FOR THE INSURER IN THE MID1980S AFTER INVESTORS TRIED TO WITHDRAW THEIR MONEY DESPITE THE SETTLEMENT TRAVELERS SAID IT CONTINUES TO DISPUTE THE CONTENTION THAT IT MISMANAGED THE ACCOUNT THE INSURER HAS ALREADY ESTABLISHED A RESERVE AND DOES NOT EXPECT ANY FINANCIAL IMPACT AS A RESULT OF THE PAYMENT TRAVELERS ESTABLISHED SEPARATE ACCOUNT R IN 1976 AS A COMMINGLED REAL ESTATE INVESTMENT VEHICLE FOR PENSION AND OTHER EMPLOYEE BENEFIT PLANS THE FUND ONCE HAD INVESTMENTS TOTALING 475 MILLION THE SETTLEMENT FOLLOWS A DISTRIBUTION OF SEPARATE ACCOUNT R'S ASSETS THAT BEGAN AT THE END OF LAST YEAR UNDER THAT ARRANGEMENT ROUGHLY 140 INVESTORS IN THE FUND ARE RECEIVING DISTRIBUTIONS TOTALING ABOUT 100 MILLION PART ON A PRO RATA BASIS AND PART BASED ON THE SEQUENCE OF THE INVESTORS' WITHDRAWAL REQUESTS TRAVELERS SAID IT WOULD ALSO PAY FOR THE INVESTORS' LEGAL COSTS RESULTING FROM THE LITIGATION THE PROBLEMS AROSE WHEN TRAVELERS BEGAN LIQUIDATING THE ACCOUNT'S ASSETS AND RETURNING THE INVESTORS' CASH ON A PRO RATA BASIS THE PENSION FUNDS OBJECTED TO THE INSURER'S METHOD OF PAYOUT IN ADDITION THEY CLAIMED THAT THE INSURER SHOULD HAVE SOLD PROPERTIES MORE QUICKLY AS WELL AS REFUNDED MANAGEMENT FEES THAT WERE BASED ON PROPERTY APPRAISAL VALUES THAT WERE LATER REDUCED 9304260105 930426 DIVIDEND NEWS SAMUEL GOLDWYN CO SAMUEL GOLDWYN CO LOS ANGELES SAID THAT ITS DIRECTORS RECOMMENDED A 1FOR4 REVERSE STOCK SPLIT AND THAT THE COMPANY FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER 5750000 COMMON SHARES OR 1437500 AFTER THE SPLIT GOLDWYN WHICH WENT PUBLIC IN DECEMBER 1991 IS 86OWNED BY ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAMUEL GOLDWYN JR THE COMPANY MAKES AND DISTRIBUTES MOVIES AND TELEVISION PROGRAMMING 9304260104 930426 DIVIDEND NEWS FIRSTFEDERAL FINANCIAL SERVICES CORP FIRSTFEDERAL FINANCIAL SERVICES CORP WOOSTER OHIO CITING A DESIRE TO INCREASE ITS STOCK'S LIQUIDITY AS WELL AS STRONG EARNINGS SAID DIRECTORS APPROVED A 3FOR2 STOCK SPLIT AND A 50 DIVIDEND INCREASE SHAREHOLDERS WILL RECEIVE ONE NEW COMMON SHARE FOR EACH TWO SHARES THEY OWN EFFECTIVE MAY 21 THE SAVINGS AND LOAN HOLDING COMPANY WILL ACCOMPLISH THE SPLIT THROUGH A STOCK DIVIDEND FIRSTFEDERAL ALSO BOOSTED THE DIVIDEND ON CURRENT SHARES TO 18 CENTS FROM 12 CENTS PAYABLE MAY 21 TO STOCK OF RECORD MAY 3 AFTER THE SPLIT THE DIVIDEND WILL BE 12 CENTS FIRSTFEDERAL EARNED 62 MILLION OR 419 A SHARE IN 1992 UP FROM 33 MILLION OR 218 A SHARE IN 1991 9304260103 930426 FORM + FUNCTION BY JOHN PIERSON MORE COMMUNITIES ARE USING ART TO MAKE HIGHWAYS LESS OFFENSIVE TO RESIDENTS RADNOR TOWNSHIP PA AND PHOENIX ARE RECENT EXAMPLES PHOENIX HAS INSTALLED 35 PIECES OF SCULPTURE AT 20 SPOTS ALONG BOTH SIDES OF A FIVEMILE STRETCH OF THE NEW SQUAW PEAK PARKWAY THE PIECES TWO TO 15 FEET HIGH ARE SHAPED LIKE VESSELS A TEAPOT SOUP TUREEN CAMPFIRE COFFEEPOT HUGE VASES AND GIANT FLOWERPOTS MOST OF THE SCULPTURES ARE ON THE NEIGHBORHOOD SIDE OF THE PARKWAY'S SOUND WALL FOR RESIDENTS' ENJOYMENT IN RADNOR TOWNSHIP MOST OF THE SCULPTURES AND OTHER ARTWORKS FACE TRAFFIC ON THE RECENTLY COMPLETED BLUE ROUTE A HIGHWAY AROUND PHILADELPHIA AND ALONG HISTORIC LANCASTER PIKE RADNOR LOST A 30YEAR FIGHT AGAINST THE BLUE ROUTE THE ARTWORKS ARE MEANT TO HELP THE TOWN REASSERT ITS IDENTITY SAYS HARVARD SCULPTOR WILLIAM REIMANN WHO IS DOING 28 ROADSIDE PIECES HIS WORKS INCLUDE A 100BY90FOOT GRIFFIN OF CRUSHED STONE BASED ON RADNOR'S MUNICIPAL SEAL A 22FOOTHIGH WELSH CAIRN RECOGNIZING THE AREA'S WELSH SETTLERS AND EIGHTFOOT STONE MILE POSTS CARVED WITH TREES DRAGONS LIONS AND WHEAT SHEAVES RADNOR'S HIGHWAY ART APPEARS TO BE POPULAR BUT THE PHOENIX PROJECT HAS BEEN CRITICIZED BY LOCALS AS FRIVOLOUS MAGS HARRIES A CAMBRIDGE MASS ARTIST WHO WORKED ON THE PROJECT REPLIES THAT THE VESSEL ESPECIALLY THE WATER VESSEL IS CELEBRATED IN PHOENIX SOON IT MAY BE LIGHT NOT BEER THAT MAKES MILWAUKEE FAMOUS THE WISCONSIN CITY HAS EMBARKED ON PERHAPS THE MOST COMPREHENSIVE EFFORT TO LIGHT A DOWNTOWN THIS SIDE OF PARIS MILWAUKEE ISN'T CONTENT JUST TO ILLUMINATE THE EXTERIORS OF A FEW BUILDINGS IT IS LIGHTING 33 LANDMARKS AS WELL AS PARKS MAJOR AVENUES STATUES AND BRIDGES ARCHITECT DAVID KAHLER WHO DEVELOPED THE PROJECT CALLS LIGHTS A QUICK EFFICIENT WAY TO UPGRADE AN URBAN AREA THE PROJECT ISN'T COMPLETED BUT THE AMERICAN INSTITUTE OF ARCHITECTS LAST MONTH GAVE MILWAUKEE AN URBAN DESIGN AWARD MERCHANTS APPEAR TO LIKE THE LIGHTS WILLIAM DELIND AN ARTGALLERY OWNER SAYS THE ADDED ILLUMINATION HAS HAD TO HAVE HAD A POSITIVE EFFECT ON BUSINESS AND CRIME MILWAUKEE POLICE SAY BURGLARIES AND ROBBERIES DOWNTOWN FELL MORE THAN 50 IN THIS YEAR'S FIRST QUARTER FROM A YEAR EARLIER THOUGH THEY SAY LIGHTING ISN'T THE ONLY REASON MAKERS OF A FEMALE URINAL SAY IT SOLVES AGEOLD PROBLEMS OF DIRTY TOILETS AND LONG LINES AT WOMEN'S RESTROOMS DESIGNED BY URINETTE A STARTUP COMPANY IN PENSACOLA FLA THE SHEINAL HAS A FUNNEL WITH A LONG HANDLE ATTACHED TO A FLEXIBLE HOSE LEADING TO A CERAMIC FIXTURE A DISPENSER PROVIDES A BIODEGRADABLE PAPER COVER FOR THE FUNNEL SINCE THERE IS NO SEAT THE COMPANY SAYS THE SHEINAL IS MORE SANITARY THAN A TYPICAL PUBLIC TOILET AND BECAUSE USERS DON'T HAVE TO SPEND TIME COVERING A SEAT WITH TOILET PAPER OR UNDRESSING SO MUCH THEY CAN USE THE SHEINAL FASTER URINETTE ALSO SAYS ITS PRODUCT TAKES UP ABOUT HALF THE SPACE OF A NORMAL TOILET THOUGH EACH SHEINAL IS ENCLOSED IN ITS OWN STALL THE COMPANY IS TRYING TO SUCCEED WHERE MAJOR PLUMBING MANUFACTURERS HAVE LARGELY FAILED TO USE THE BIG COMPANIES' FEMALE URINALS WOMEN HAD TO STRADDLE AND CROUCH OVER THEM THEY FOUND THIS HARD TO DO WHILE WEARING SLACKS OR PANTYHOSE TO USE THE SHEINAL WOMEN MUST PULL THEIR CLOTHING OUT OF THE WAY BUT NOT SO MUCH THE COMPANY SAYS AND THEY CAN STAND UP STRAIGHT THE SHEINAL IS GAINING ACCEPTANCE FROM COMMERCIAL CUSTOMERS KAREN SLUSAR OWNER OF A PORT CHARLOTTE FLA DAIRY QUEEN SAYS INSTALLING A SHEINAL SAVED HER 300 TO 400 OVER A REGULAR TOILET CHUCK PORTER DIRECTOR OF OPERATIONS AT THE PENSACOLA AIRPORT SAYS A SHEINAL REQUIRES LESS CLEANUP THE SUPERDOME IN NEW ORLEANS JUST ORDERED A SHEINAL WOMEN WHO USE THE DEVICE HAVE MIXED REACTIONS WRITTEN COMMENTS HAVE RANGED FROM MY 93YEAROLD MOTHER TRIED IT AND WAS ALSO ENTHUSIASTIC TO TOO FRIGHTENINGLOOKING TO USE ONE WOMAN WROTE I DON'T THINK IT SAVES TIME BUT IT IS CLEANER ANOTHER COMPLAINED THE PAPER COVERS FOR THE FUNNEL RAN OUT RENDERING THE SHEINAL USELESS MIDGE FITZ BANQUET COORDINATOR AT COWBOY'S STEAK HOUSE NAVARRE FLA SAYS HALF OF HER WOMEN CUSTOMERS LOVE THE SHEINAL WHILE THE OTHER HALF WON'T USE IT MS FITZ IS AMONG THE NONUSERS IF GOD WANTED ME TO BE A MAN SHE SAYS HE WOULD HAVE MADE ME A MAN 9304260102 930426 JAPAN BANKS RECEIVE CUTS IN DEBT RATINGS KEY INSTITUTIONS ALSO POST LOSSES FOR VALUATION OF PORTFOLIO HOLDINGS BY CLAY CHANDLER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S SHELLSHOCKED FINANCIAL SYSTEM WAS HIT WITH ANOTHER BARRAGE OF BAD NEWS FRIDAY MOODY'S INVESTORS SERVICE INC DOWNGRADED 85 BILLION OF DEBT OF TWO MAJOR COMMERCIAL BANKS AND STANDARD & POOR'S CORP LOWERED RATINGS ON THE DEBT OF FOUR TRUST BANKS SEVENTEEN OF JAPAN'S LARGEST BANKS ALSO ANNOUNCED VALUATION LOSSES ON THEIR STOCK PORTFOLIOS SEPARATELY TWO OF JAPAN'S BIG FOUR SECURITIES COMPANIES NOMURA SECURITIES CO AND YAMAICHI SECURITIES CO ANNOUNCED VALUATION LOSSES ON THEIR STOCK PORTFOLIOS AND DIVIDEND CUTS THE REPORTS OFFERED A GRIM REMINDER THAT ALTHOUGH JAPAN'S REGULATORS HAVE DEFTLY MANAGED TO KEEP THE COLLAPSE IN STOCK AND PROPERTY PRICES FROM DEGENERATING INTO A FULLBLOWN CRISIS THE NATION'S ONCEMIGHTY FINANCIAL INSTITUTIONS HAVE BEEN BADLY DAMAGED BY THE SLUMP SOME ARE LIKELY TO REMAIN WEAK FOR YEARS TO COME MOODY'S DOWNGRADED ITS RATING OF SENIOR DEBT ISSUED BY SUMITOMO BANK LTD AND FUJI BANK LTD TO SINGLEA1 FROM DOUBLEA3 THE LONGTERM RATINGS OF THE BANKS' SUBSIDIARIES WERE ALSO DOWNGRADED THE DOWNGRADINGS AFFECTED 38 BILLION OF SUMITOMO'S DEBT AND 47 BILLION OF FUJI'S DEBT MOODY'S SAID SUMITOMO'S LOWER RATING REFLECTED CONCERN ABOUT POTENTIAL LOSSES ASSOCIATED WITH THE BANK'S LENDING TO ITOMAN CORP A SCANDALPLAGUED CLIENT RECENTLY ABSORBED BY A SUMITOMO BANK AFFILIATE IN ADDITION TO SUMITOMO'S HIGH LENDING EXPOSURE TO THE REAL ESTATE INDUSTRY MOODY'S SAID THESE AND OTHER TROUBLES WILL DAMPEN THE BANK'S PROFITABILITY OVER THE NEXT SEVERAL YEARS THE RATING AGENCY ALSO CITED HEAVY REAL ESTATE AND CONSTRUCTION LENDING AS REASONS FOR DOWNGRADING FUJI'S DEBT AND NOTED THE BANK'S HIGH EXPOSURE TO TROUBLED FINANCE COMPANIES SPOKESMEN FOR BOTH SUMITOMO BANK AND FUJI BANK DECLINED TO COMMENT ON THE DOWNGRADINGS MEANWHILE S&P LOWERED RATINGS ON SENIOR DEBT OF FOUR OF JAPAN'S SEVEN TRUST BANKS THE BANKS WERE MITSUBISHI TRUST & BANKING CO TO SINGLEAMINUS FROM SINGLEAPLUS SUMITOMO TRUST & BANKING CO TO SINGLEAMINUS FROM SINGLEAPLUS MITSUI TRUST & BANKING CO TO TRIPLEBPLUS FROM SINGLEA AND YASUDA TRUST & BANKING CO TO TRIPLEB FROM SINGLEAMINUS S&P ALSO CITED EXTENSIVE LENDING TO THE NATION'S PROPERTY MARKETS IN ANNOUNCING THE DOWNGRADES JAPAN'S TRUST BANKS' EXPOSURE TO THE STOCK AND PROPERTY MARKETS IS GENERALLY MUCH HIGHER THAN THAT OF THE NATION'S COMMERCIAL BANKS AT THE SAME TIME TRUST BANKS RELY MORE HEAVILY FOR INCOME ON COMMISSIONS FROM STOCK AND PROPERTY TRANSACTIONS THE 17 MAJOR BANKS THAT DECLARED VALUATION LOSSES ON THEIR STOCK PORTFOLIOS INCLUDED NINE OF JAPAN'S 11 COMMERCIAL BANKS FIVE OF THE SEVEN TRUST BANKS AND ALL THREE THE NATION'S LONGTERM CREDIT BANKS ACCORDING TO THE NIHON KEIZAI SHIMBUN A LEADING FINANCIAL DAILY AS A GROUP THE INSTITUTIONS REPORTED 4124 BILLION YEN 375 BILLION IN VALUATION LOSSES FOR THE 1992 FISCAL YEAR WHICH ENDED MARCH 31 1993 THE NEWSPAPER REPORTED THE FOUR REMAINING MAJOR BANKS ARE EXPECTED TO ANNOUNCE VALUATION LOSSES IN THE NEAR FUTURE THE LOSSES REFLECTED THE SLUMP IN TOKYO STOCK PRICES BUT WERE MILD IN COMPARISON TO THE DIRE PREDICTIONS OFFERED BY FINANCIAL ANALYSTS ONLY SIX MONTHS AGO THE NIKKEI STOCK AVERAGE ENDED THE FISCAL YEAR AT 18591 POINTS DOWN ABOUT 750 FROM THE PREVIOUS YEAR BUT A MUCH BETTER SHOWING THAN SEEMED POSSIBLE SEVERAL MONTHS AGO JAPAN'S GOVERNMENT HAD BEEN PROPPING UP THE MARKET BY BUYING SHARES WITH GOVERNMENTCONTROLLED FUNDS INDEED BANKS' VALUATION LOSSES FOR THE FULL FISCAL YEAR ENDED ABOUT A THIRD LOWER THAN THE LOSSES THEY DECLARED AT THE END OF THE FIRST HALF OF FISCAL 1992 WHICH ENDED SEPTEMBER 30 THE BANKS SUFFERED MUCH HEAVIER VALUATION LOSSES IN THE YEAR ENDED MARCH 31 1992 PRESUMABLY SMALLER VALUATION LOSSES WILL ALLOW THE BANKS MORE LATITUDE TO WRITE OFF THEIR NONPERFORMING LOANS THE ANNOUNCEMENTS WERE PROMPTED BY TOKYO STOCK MARKET RULES WHICH REQUIRE LISTED COMPANIES TO DISCLOSE SECURITIES VALUATION LOSSES OF MORE THAN 30 OF PRETAX PROFIT OR NET PROFIT ANNOUNCEMENTS BY THE TWO BIG SECURITIES COMPANIES WERE ALSO BLEAK THE FIRMS NOMURA AND YAMAICHI ALSO DISCLOSED VALUATION LOSSES FOR THE FISCAL YEAR AND SAID THEY PLAN PROVISIONAL REDUCTIONS IN DIVIDEND PAYMENTS THE CUTS ARE SUBJECT TO SHAREHOLDER APPROVAL WHICH IS EXPECTED NOMURA ANNOUNCED ITS DIVIDEND WOULD BE CUT TO 10 YEN A SHARE DOWN FROM 15 YEN A SHARE IT WAS THE FIRST DIVIDEND CUT FOR NOMURA JAPAN'S BIGGEST SECURITIES FIRM SINCE 1975 NOMURA ALSO ANNOUNCED VALUATION LOSSES OF 121 BILLION YEN 110 MILLION THE LOWER DIVIDEND WILL SAVE NOMURA ABOUT 10 BILLION YEN ACCORDING TO J BRIAN WATERHOUSE A FINANCIAL ANALYST AT JAMES CAPEL PACIFIC LTD IN OCTOBER 1992 NOMURA PROJECTED IT WOULD BREAK EVEN FOR THE YEAR BUT MR WATERHOUSE SAYS THE COMPANY MAY POST A LOSS YAMAICHI WHICH CUT ITS DIVIDEND LAST YEAR ANNOUNCED A DIVIDEND CUT TO 5 YEN A SHARE FROM 75 YEN THE FIRM REPORTED VALUATION LOSSES OF 169 BILLION YEN 1536 MILLION FOR THE YEAR ENDING MARCH 31 9304260101 930426 BUSINESS BRIEFS UNIFI INC COMPLETED ITS ACQUISITION OF VINTAGE YARNS INC IN A STOCK SWAP VALUED AT AS MUCH AS 275 MILLION INTEGRA FINANCIAL CORP COMPLETED THE MERGER OF ITS INTEGRA BANK/PITTSBURGH SUBSIDIARY WITH ITS EQUIBANK UNIT NABORS INDUSTRIES INC AGREED TO PURCHASE LAND DRILLING RIGS AND OTHER ASSETS FROM GRACE DRILLING CO A UNIT OF WR GRACE & CO FOR 32 MILLION HANSON PLC'S PEABODY HOLDING CO UNIT COMPLETED THE PURCHASE OF COSTAIN GROUP PLC'S AUSTRALIAN COAL ASSETS FOR 299 MILLION INCLUDING ASSUMPTION OF DEBT AND LEASES 9304260100 930426 WEAK DOLLAR CALM EUROPEAN MARKETS CREATE CHANCES FOR WORLD BOND FUNDS BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE COMBINATION OF A WEAK DOLLAR AND CALMER EUROPEAN CURRENCY MARKETS HAS CREATED OPPORTUNITIES FOR INTERNATIONAL BOND FUNDS IN EUROPE FUND MANAGERS SAY CURRENCY RISK AND THE EXPENSE OF HEDGING IT HAVE DIMINISHED THAT'S PARTLY BECAUSE ANALYSTS NO LONGER EXPECT THE DOLLAR TO SURGE AGAINST THE MARK AND OTHER EUROPEAN CURRENCIES THIS YEAR IN ADDITION THE BATTERING TAKEN BY SOME EUROPEAN CURRENCIES BEGINNING LAST SEPTEMBER WITH THE UNRAVELING OF THE EUROPEAN MONETARY SYSTEM IS LARGELY OVER SOME ANALYSTS BELIEVE THE DAMAGE IS DONE SAYS ROBERT S DOW PORTFOLIO MANAGER AND PARTNER IN CHARGE OF FIXED INCOME AT LORD ABBETT MANY MARKET PLAYERS HAD ANTICIPATED A RAPID CONVERGENCE OF US AND GERMAN INTEREST RATES THIS YEAR AND THEY WERE EXPECTING A RISING DOLLAR AS A RESULT A JUMP IN THE DOLLAR COULD HAVE ERODED RETURNS ON OVERSEAS HOLDINGS FOR DOLLARBASED INVESTORS BUT GERMAN RATES HAVE BEEN DROPPING SLOWLY AND THE US ECONOMY LOOKS WEAKER THAN ANTICIPATED CURRENCY MARKET PARTICIPANTS HAVE BEEN SHRUGGING OFF ACTUAL GERMAN RATE CUTS THURSDAY'S REDUCTIONS IN THE DEUTSCHE BUNDESBANK'S TWO MAIN LENDING RATES FOR EXAMPLE PROMPTED ONLY A SHORTLIVED RALLY IN THE DOLLAR WHICH CLOSED LOWER ON THE DAY LATE FRIDAY IN NEW YORK THE DOLLAR TRADED AT 15825 MARKS COMPARED WITH 15959 MARKS LATE THURSDAY IN NEW YORK AGAINST THE YEN THE US CURRENCY WAS AT 11050 YEN UP FROM 10993 YEN AT MIDDAY MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 11055 YEN AND 15745 MARKS T ROWE PRICE'S 467 MILLION SPECTRUM INCOME FUND IS TAKING THE OPPORTUNITY TO MOVE FUNDS OUT OF THE US AND INTO EUROPE SPECTRUM WHICH INVESTS IN SEVEN OTHER T ROWE PRICE FUNDS BEEFED UP ITS HOLDINGS IN THE INTERNATIONAL BOND FUND FROM 75 TO 125 THIS MONTH DRAWING THE MONEY FROM THE SHORTTERM US BOND AND GINNIE MAE FUNDS EARLIER THE FIRM'S FUND MANAGERS HAD RESISTED THE TEMPTATION OF HIGHER EUROPEAN YIELDS AND THE PROSPECT OF CAPITAL GAINS AS INTEREST RATES FALL SAYS STEVEN NORWITZ SPOKESMAN FOR THE FUND GROUP A FASTRISING DOLLAR THE MANAGERS THOUGHT COULD CANCEL OUT THOSE GAINS THE VIEW NOW IS THAT THE DOLLAR DOESN'T REPRESENT MUCH OF A RISK IN THE NEAR TERM MR NORWITZ SAYS SO WE MIGHT AS WELL GET HIGHER YIELD AND THE PROSPECT OF CAPITAL APPRECIATION WITHOUT MUCH CURRENCY RISK OTHER MANAGERS ARE TAKING HEART FROM EVIDENCE THAT THE WORST OF EUROPE'S EXCHANGERATE TURMOIL IS OVER THE FRENCH FRANC SURVIVED FRANCE'S ELECTIONS LAST MONTH AND SOME OTHER CURRENCIES SUCH AS THE LIRA HAVE BEEN BATTERED TO THE POINT WHERE THEY AREN'T LIKELY TO FALL MUCH FURTHER FUND MANAGERS CONTEND THE CONTINUING DECLINE OF GERMAN INTEREST RATES HAS HELPED TAKE PRESSURE OFF CURRENCIES IN NEIGHBORING NATIONS IN THEIR VIEW EARLIER IT LOOKED LIKE THE FRENCH FRANC WAS LIKELY TO COLLAPSE AFTER THE ELECTION SAYS LORD ABBETT'S MR DOW THAT LED LORD ABBETT'S 190 MILLION GLOBAL INCOME FUND TO ESTABLISH A HEDGE BUT THAT PROVED UNNECESSARY AND THE FUND'S EUROPEAN HOLDINGS ARE NOW ENTIRELY UNHEDGED HE SAYS THE RECENT STRENGTHENING OF THE FRANC EVEN ALLOWED THE BANK OF FRANCE TO CUT BENCHMARK INTEREST RATES FRIDAY FOR THE THIRD TIME IN 10 DAYS THE FUND ALSO IS BEGINNING TO REINVEST IN SPAIN AND ITALY WHOSE CURRENCIES HAVE DEVALUED SHARPLY SINCE LAST SEPTEMBER BOTH CURRENCIES ARE STILL LIKELY TO DECLINE MR DOW SAYS BUT YIELDS SHOULD AT LEAST COMPENSATE FOR FOREIGNEXCHANGE LOSSES A SIMILAR VIEW RECENTLY LED IDS GLOBAL BOND FUND WITH 135 MILLION IN ASSETS TO TAKE POSITIONS IN THE GOVERNMENT BOND MARKETS IN ITALY SWEDEN AND FINLAND RAY GOODNER PORTFOLIO MANAGER AT IDS NOTES THAT THE HOLDINGS DON'T REPRESENT A MAJOR BET ITALIAN AND SWEDISH GOVERNMENT BONDS NOW ACCOUNT FOR JUST 3 OF THE IDS FUND'S TOTAL ASSETS ALTHOUGH THAT'S UP FROM ZERO LAST WINTER STILL MR GOODNER IS ENCOURAGED BY DEVELOPMENTS IN ITALY SWEDEN AND FINLAND ADJUSTED FOR INFLATION BOND RETURNS IN THE THREE COUNTRIES ARE RELATIVELY HIGH HE SAYS MOVES ARE UNDER WAY TO SHORE UP THE GOVERNMENTAL SYSTEMS IN ITALY AND SWEDEN AND THE ITALIAN LIRA SWEDISH KRONA AND FINNISH MARKKA EACH HAS BEEN SUBSTANTIALLY DEVALUED AGAINST THE MARK 9304260099 930426 MARKETING & MEDIA COCACOLA IS PURCHASING STAKE IN MEXICAN COMPANY MEXICO CITY COCACOLA CO IS EXPECTED TO ANNOUNCE TODAY THE PURCHASE OF A MINORITY STAKE IN THE SOFT DRINK DIVISION OF FOMENTO ECONOMICO MEXICANO SA OR FEMSA A BEVERAGE COMPANY BASED IN MONTERREY MEXICO THAT OWNS THE LARGEST COKE FRANCHISE IN THE WORLD COKE AND FEMSA HAVE CALLED A NEWS CONFERENCE HERE THIS MORNING WHICH COKE CHAIRMAN ROBERTO C GOIZUETA AND FEMSA PRESIDENT EUGENIO GARZA LAGUERA AMONG OTHER TOP OFFICIALS OF THE TWO COMPANIES ARE TO ATTEND FEMSA WHICH ALSO HAS BEER AND PACKAGING OPERATIONS RECENTLY SAID THAT IT WAS NEAR AN AGREEMENT TO SELL COCACOLA A 30 TO 49 STAKE IN ITS SOFTDRINK OPERATIONS ANALYSTS HAVE VALUED THE ENTIRE FEMSA SOFT DRINK DIVISION AT ROUGHLY 1 BILLION COKE'S EXPECTED MOVE REFLECTS THE GROWING COMPETITION BETWEEN THE COLA GIANTS IN MEXICO WHERE PERCAPITA SOFT DRINK CONSUMPTION IS SECOND ONLY TO THAT IN THE US FEMSA HAS SAID THAT PROCEEDS FROM AN EQUITY SALE WOULD GO TOWARD A 600 MILLION EXPANSION PROGRAM THAT INCLUDES THE CONSTRUCTION OF FIVE NEW BOTTLING PLANTS IN MEXICO CITY AND SOUTHERN MEXICO FEMSA'S GROWTH PLAN IS DESIGNED TO THWART PEPSICO INC WHICH RECENTLY PURCHASED AN EQUITY STAKE IN A MEXICAN AFFILIATE AND GRANTED ANOTHER LOCAL PEPSI BOTTLER A FRANCHISE IN SOUTHERN MEXICO 9304260098 930426 THIS PUB SOUNDS LIKE HARRY'S BAR NOT TO MENTION TOM'S AND DICK'S BY STEFANIE ILGENFRITZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHAT'S IN A NAME HOW ABOUT DRINKS ON THE HOUSE ON THE RIGHT NIGHT ANY TOM DICK OR HARRY CAN GET FREE LIBATIONS AT THE NO IDEA BAR HERE SINCE THEY OPENED NO IDEA LAST NOVEMBER PARTNERS JOE DIPIETRO AND KEVIN BARRY HAVE PICKED A FIRST NAME FOR EACH DAY AND LET ANYONE WITH THAT NAME GUZZLE GRATIS HOOCH FROM 6 TO 11 PM BUSY WEEKENDS USUALLY FEATURE NAMES LIKE YOLANDA OR LEVI BUT TED LAURA AND JOE HAVE EACH HAD THEIR DAY HOLIDAYS HAVE INSPIRED MARY AND JOSEPH NIGHTS AS WELL AS CUPID NO TAKERS ELIJAH DIDN'T SHOW ON HIS NIGHT THOUGH THERE WAS AN EMPTY BAR STOOL FOR HIM ONE RECENT NIGHT HONORED THE MIKES OF THIS WORLD AND 11 MIKES DUTIFULLY APPEARED TO ACCEPT THEIR AWARDS IT'S NICE TO FINALLY GET THE RECOGNITION WE DESERVE SAID MIKE MALONE I THINK EVERY NIGHT SHOULD BE MIKE NIGHT I THOUGHT THEY'D NEVER HAVE MIKE NIGHT SAID MIKE MCCLELLAN I'M MICHAEL PROTESTED MIKE GARRETT ATTEMPTING TO PAY FOR HIS PINT OF ALE IT REALLY DOESN'T APPLY TO ME OH NO INSISTED MR BARRY MICHAELS DEFINITELY COUNT ONE NIGHT THERE WERE EIGHT JANES THE CONVERSATION WENT HI JANE I'M JANE' AND JANE MEET JANE WHERE'S JANE' SAYS MR DIPIETRO NAME NIGHT BEGAN AS A SHORTTERM GIMMICK TO BRING ATTENTION TO THE NEW EAST 20TH STREET BAR BUT EACH DAVE OR DONNA WHO SHOWED UP FOR THE FREEBIES USUALLY BROUGHT SEVERAL PAYING FRIENDS SAYS MR DIPIETRO SO THE PARTNERS DECIDED TO MAKE IT A PERMANENT PROMOTION ORIGINALLY ONLY NO IDEA INSIDERS HAD THE SCOOP A NEWSLETTER NOTIFIED THE APPROPRIATELY CHRISTENED THAT THEY HAD BEEN SELECTED NOW HOWEVER NO IDEA INCLUDES A MONTHLY CALENDAR OF NAMES IN ITS NEWSPAPER ADS MESSRS BARRY AND DIPIETRO SAY THEY MOSTLY CHOOSE NAMES AT RANDOM BUT A FEW REGULARS HAVE BEEN FAVORED WITH THEIR OWN SPECIAL DAYS THE VERY FIRST NIGHT FETED QADRY THEIR CABDRIVER ON OPENING NIGHT THE NAME OF THE NIGHT IS ALWAYS POSTED AT THE BAR FOR ANY LUCKY LARRY OR LINDA WHO HAPPENS IN BY CHANCE MR BARRY SAYS THEY SOMETIMES INSIST ON PROOF BUT NOT ALWAYS AND SPELLING DOESN'T COUNT WHEN AN ALBERTO SHOWED UP ON UMBERTO NIGHT SAYS MR BARRY WE LET HIM SLIDE 9304260097 930426 CLINTON WANTS TO AMEND THE NANNY' TAX LAW WASHINGTON AP PRESIDENT CLINTON WANTS TO CHANGE THE SOCIAL SECURITY TAX LAWS THAT HELPED SINK HIS FIRST NOMINEE FOR ATTORNEY GENERAL IN A LETTER RELEASED FRIDAY HE CALLED THE RULES ON THE PAYMENT OF SOCIAL SECURITY TAXES FOR PARTTIME AND HOUSEHOLD WORKERS OUTDATED HIS ACTION WAS AN OUTGROWTH OF THE CONTROVERSY OVER ZOE BAIRD WHO WITHDREW HER NOMINATION FOR ATTORNEY GENERAL AFTER ADMITTING THAT SHE ILLEGALLY HIRED UNDOCUMENTED ALIENS AS HOUSEHOLD WORKERS AND FAILED TO PAY SOCIAL SECURITY TAXES ON THEIR WAGES IN THE LETTER SENT TO SENATE JUDICIARY COMMITTEE CHAIRMAN JOSEPH BIDEN D DEL MR CLINTON SAID HE HAD ASKED THE TREASURY DEPARTMENT TO EXAMINE EXISTING PROPOSALS TO SIMPLIFY REPORTING REQUIREMENTS AND INCREASE THE DOLLAR THRESHOLD IT IS CLEAR THAT THE LAW HAS BEEN MISUNDERSTOOD BY MANY WELLINTENTIONED PEOPLE AND AS A RESULT COMPLIANCE HAS BEEN INADEQUATE MR CLINTON WROTE THE FINANCIAL THRESHOLD IN THE LAW IS OUTDATED HAVING REMAINED UNCHANGED FOR THE PAST FOUR DECADES IT IS TIME TO AMEND THE LAW THE LAW WHICH DATES BACK TO 1950 REQUIRES EMPLOYERS TO PAY SOCIAL SECURITY AND MEDICARE TAXES FOR ANY DOMESTIC EMPLOYEE WHO EARNS MORE THAN 50 A QUARTER ACCORDING TO THE BUREAU OF LABOR STATISTICS 1130000 PEOPLE ARE EMPLOYED IN PRIVATE HOMES MANY WORK IN MORE THAN ONE HOME AT A TIME BUT ONLY ABOUT 500000 HOUSEHOLDS FILE THE REQUIRED TAX FORMS EACH QUARTER 9304260096 930426 COMMERCE AGENCY WOOS GARTEN FOR TOP TRADE POST WASHINGTON THE COMMERCE DEPARTMENT IS WOOING JEFFREY GARTEN A SENIOR ADVISER AND FORMER MANAGING DIRECTOR OF THE BLACKSTONE GROUP TO TAKE THE TOP TRADE POSITION AT THE DEPARTMENT CLINTON ADMINISTRATION OFFICIALS SAID THAT MR GARTEN WHO IS VACATIONING IN EUROPE UNTIL NEXT MONDAY IS CONSIDERING WHETHER TO TAKE THE POST AS HEAD OF THE INTERNATIONAL TRADE ADMINISTRATION SO FAR AT LEAST THREE OTHER TRADE EXPERTS HAVE TURNED DOWN THE JOB OR TAKEN THEIR NAMES OUT OF CONSIDERATION INCLUDING GOLDMAN SACHS & CO EXECUTIVE ROBERT HORMATS MASSACHUSETTS INSTITUTE OF TECHNOLOGY ECONOMIST RUDIGER DORNBUSCH AND SLOAN SCHOOL DEAN LESTER THUROW THE COMMERCE DEPARTMENT'S TROUBLE IN RECRUITING A TRADE CHIEF HAS DIMINISHED THE AGENCY'S ROLE IN SETTING TRADE POLICY IF MR GARTEN TAKES THE JOB HE WOULD BE ONE OF THE FEW CLINTON NOMINEES WITH ANY FIRSTHAND EXPERIENCE WITH JAPAN HE LIVED IN TOKYO FOR THREE YEARS AS HEAD OF SHEARSON LEHMAN BROTHERS INC'S ASIA OPERATIONS A UNIT OF AMERICAN EXPRESS CO HE ALSO HAS WRITTEN A SOBER BOOK ABOUT USJAPANESEGERMAN RELATIONS CALLED A COLD PEACE 9304260095 930426 WHISTLEBLOWER AT GE TO GET 115 MILLION BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL A FEDERAL JUDGE AWARDED 115 MILLION TO A FORMER GENERAL ELECTRIC CO EMPLOYEE FOR EXPOSING A DEFENSECONTRACT FRAUD AT THE COMPANY AFTER THE US JUSTICE DEPARTMENT ABANDONED ITS EFFORT TO LOWER THE AMOUNT THE AWARD IS THE LARGEST EVER TO A WHISTLEBLOWER THE JUSTICE DEPARTMENT HAD WANTED THE AMOUNT REDUCED TO 45 MILLION THE AWARD PROMPTED GE BASED IN FAIRFIELD CONN TO RENEW ITS CALL FOR A REFORM OF THE FALSE CLAIMS ACT THE FEDERAL STATUTE ALLOWS EMPLOYEES TO SUE THEIR EMPLOYERS ON BEHALF OF THE GOVERNMENT AND COLLECT AS MUCH AS A QUARTER OF THE ASSESSMENTS AND FINES GE SAID THE LURE OF A BOUNTY WAS WHY THE EMPLOYEE DIDN'T FIRST REPORT HIS SUSPICIONS TO ANYONE AT GE THE JUSTICE DEPARTMENT DECLINED TO COMMENT JUDGE CARL B RUBIN'S ORDER APPROVING THE AWARD SETTLES ONE OF THE MOST CONTROVERSIAL ISSUES OF THE CASE IN WHICH GE PAID 69 MILLION IN FINES AND PENALTIES LAST YEAR TO SETTLE CIVIL AND CRIMINAL CHARGES THE JUSTICE DEPARTMENT WHICH IS SUPPOSED TO AID WHISTLEBLOWERS TOOK OVER THE SUIT ON BEHALF OF THE GE EMPLOYEE BUT AS THE INVESTIGATION PROCEEDED IT TURNED AGAINST THE WHISTLEBLOWER IT CHARGED AS DID GE THAT THE WHISTLEBLOWER CHESTER WALSH DELAYED REPORTING THE FRAUD SO THAT HE COULD COLLECT A LARGE SUM MR WALSH EMPLOYED AT GE AIRCRAFT ENGINE AT THE TIME GATHERED EVIDENCE FOR MORE THAN FOUR YEARS BEFORE FILING THE SUIT IN CINCINNATI IN NOVEMBER 1990 MR WALSH SAID HE NEEDED THAT MUCH TIME TO BUILD HIS CASE AGAINST HIS EMPLOYER THE GOVERNMENT'S CONTENTION WHICH WAS THE BASIS FOR AN APPEAL TO REDUCE THE AWARD HAD RAISED CONCERNS AMONG ATTORNEYS FOR WHISTLEBLOWERS THEY FEARED THAT IF THE JUSTICE DEPARTMENT SUCCEEDED IN LIMITING THE AWARD IT WOULD DISCOURAGE POTENTIAL WHISTLEBLOWERS AND ALSO MIGHT MAKE THE JUSTICE DEPARTMENT AN ADVERSARY RATHER THAN AN ALLY UNDER THE FALSE CLAIMS ACT I HOPE THAT THE JUSTICE DEPARTMENT WILL NOW BEGIN TO PURSUE FRAUD RATHER THAN WHISTLEBLOWERS SAID MR WALSH IN A STATEMENT JOHN PHILLIPS ONE OF MR WALSH'S ATTORNEYS SAID THE SUBSTANTIAL REWARD IS THE BEST EXAMPLE TO DATE OF HOW THE CONGRESSIONAL SUPPORTERS OF THIS BIPARTISAN LEGISLATION INTENDED THE FALSE CLAIMS ACT TO WORK DIVERSION OF FUNDS THE FRAUD INVOLVED DIVERSION OF US FUNDS BY HIGHLEVEL COMPANY EMPLOYEES AND AN ISRAELI GENERAL RAMI DOTAN IN CONNECTION WITH ISRAEL'S ACQUISITION OF GE JET ENGINES THE SCHEME WAS ORCHESTRATED BY EMPLOYEES AT GE AIRCRAFT ENGINE IN CINCINNATI AND AT THE UNIT'S OFFICES IN ISRAEL WHERE MR WALSH WAS BASED FOLLOWING GE'S SETTLEMENT WITH THE JUSTICE DEPARTMENT IN JULY JUDGE RUBIN IN DECEMBER SET THE AMOUNT OF THE AWARD TO MR WALSH AT 134 MILLION THAT WAS NEAR THE MAXIMUM ALLOWABLE 149 MILLION OR 25 OF THE 595 MILLION GE PAID TO SETTLE THE CIVIL PORTION OF THE CHARGES MR WALSH'S ATTORNEYS SAID THEY AGREED TO ACCEPT 115 MILLION IN RETURN FOR THE GOVERNMENT DROPPING ITS APPEAL MR WALSH UNDER A PRIOR AGREEMENT WILL SPLIT THE AWARD WITH TAXPAYERS AGAINST FRAUD A WASHINGTON DC GROUP THAT JOINED THE 61YEAROLD MR WALSH IN THE SUIT 9304260094 930426 MOLLICONE CONVICTED OF CHARGES IN COLLAPSE OF STATE BANK SYSTEM PROVIDENCE RI JOSEPH MOLLICONE JR SUSPECTED OF TRIGGERING THE COLLAPSE OF RHODE ISLAND'S BANKING SYSTEM IN 1991 WAS CONVICTED OF EMBEZZLEMENT RECORDS FALSIFICATION AND RELATED CHARGES HE FACES A 500YEAR SENTENCE A STATE SUPERIOR COURT JURY FOUND MR MOLLICONE GUILTY ON 29 COUNTS INCLUDING STEALING 158 MILLION FROM HERITAGE LOAN & INVESTMENT BANK OF WHICH HE WAS PRESIDENT IT WAS THE LAST MAJOR PROSECUTION IN THE STATE'S WORST BANKING CRISIS SINCE THE GREAT DEPRESSION MR MOLLICONE'S EMBEZZLEMENT OVERWHELMED THE RESOURCES OF THE RHODE ISLAND SHARE & DEPOSIT INDEMNITY CORP A PRIVATE DEPOSIT INSURANCE FUND AND LED TO THE CLOSING OF 45 BANKS AND CREDIT UNIONS THROUGHOUT THE STATE KEVIN BRISTOW ASSISTANT STATE ATTORNEY GENERAL SAID MR MOLLICONE'S CONVICTION WAS A GOOD THING FOR THE STATE SOMEONE HAS FINALLY BEEN HELD ACCOUNTABLE HE SAID ROBERT MANN DEFENSE ATTORNEY SAID HE WAS DISAPPOINTED AND THAT AN APPEAL WAS A LIKELY COURSE PETER NEVOLA AND JOSEPH BELLUCCI FORMER PRESIDENT AND CHAIRMAN RESPECTIVELY OF RHODE ISLAND SHARE & DEPOSIT WERE ACQUITTED IN NOVEMBER OF CONSPIRING TO COVER UP EMBEZZLEMENT AT HERITAGE LOAN JOHN MCCARTHY MANAGER OF OPERATIONS FOR RHODE ISLAND DEPOSITORS' ECONOMIC PROTECTION CORP A COMPANY FORMED TO PAY BACK DEPOSITORS SAID THAT OF THE 300000 RHODE ISLANDERS WHO LOST ACCESS TO THEIR DEPOSITS IN THE CRISIS ABOUT 90 HAVE RECEIVED FULL REFUNDS A REMAINING 16000 PEOPLE WHOSE ORIGINAL BALANCES EXCEEDED 10000 ARE AWAITING FINAL PAYMENTS THAT MAY NOT BE DELIVERED UNTIL JUNE 1996 MR MCCARTHY SAID 9304260093 930426 MARKETING THE RISING SUN SHINES ON PRIVATE LABELS BY YUMIKO ONO STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO A FOOD FRACAS THAT HAS ALREADY SWEPT THROUGH US SUPERMARKET AISLES IS FLARING UP HERE AS IN TULSA AND TOLEDO SHOPPERS IN TOKYO ARE SNAPPING UP PRIVATELABEL BARGAINS FORCING MAKERS OF BIG BRANDS TO CUT PRICES IN A FIGHT TO REVERSE SALES DECLINES LAST SPRING AS US TRADE NEGOTIATORS FINISHED PRYING OPEN JAPAN'S JUICE MARKET DOLE FOOD CO TROPICANA PRODUCTS INC AND A HOST OF OTHER US BEVERAGE MAKERS FLOODED STORE SHELVES WITH THEIR ORANGE JUICE THE VARIETY OF BRANDS MULTIPLIED CONSUMERS NO LONGER HAD TO SETTLE FOR WATERY JAPANESE TANGERINE JUICE BUT ORANGEJUICE LOVER YUICHI TORII SAYS HE NEVER BUYS US BRANDS HIS CHOICE THE SAVINGS BRAND A PRIVATELABEL DRINK INTRODUCED IN MARCH 1992 BY KOBEBASED SUPERMARKET CHAIN DAIEI INC YOU'VE GOT TO THINK ABOUT COST PERFORMANCE SAYS THE 31YEAROLD LEASINGCOMPANY EMPLOYEE MR TORII NOTES THAT DAIEI'S PRODUCT MADE FROM LOWCOST BRAZILIAN ORANGES IS 40 CHEAPER THAN MOST US JUICES HE PREFERS THE MILD TASTE OF DOLE BUT SAYS IT ISN'T WORTH THE HEFTY RETAIL PRICE OF 290 YEN 265 A LITER JAPANESE SUPERMARKET CHAINS ARE LAUNCHING A SLEW OF LOWPRICE PRIVATELABEL PRODUCTS THAT ARE THREATENING LUCRATIVE NICHES STAKED OUT BY US FOOD COMPANIES DAIEI WHICH STARTED THE CUTRATE CAMPAIGN ALSO SELLS PREMIUM ICE CREAM AT HALF THE PRICE OF BORDEN INC PRODUCTS WHICH HAVE A BIG MARKET SHARE IN JAPAN DAIEI MARKETS ITS OWN CANNEDCOFFEE DRINKS CHARGING 30 LESS THAN COCACOLA CO JAPAN'S BIGGEST SOFTDRINK MAKER SEIYU LTD ANOTHER BIG SUPERMARKET CHAIN SELLS CORN FLAKES FOR LESS THAN KELLOGG CO JAPAN'S DOMINANT BRAND IN FOODSTORE CHAINS ACROSS CENTRAL JAPAN SALES OF PRIVATEBRAND KETCHUP SURGED 27 IN THE THREE MONTHS ENDED FEB 28 WHILE NATIONAL BRANDS' SALES ROSE A MODEST 27 FROM THE YEAREARLIER PERIOD ACCORDING TO AC NIELSEN SIMILARLY SALES OF PRIVATEBRAND HAMBURGER SOARED 37 BUT NATIONAL BRANDS' SALES FELL 1 THESE DAYS THE CONSUMERS KNOW VERY WELL THE TRUE VALUE OF PRODUCTS THEY BUY SAYS A SPOKESMAN FOR ITOYOKADO CO A MAJOR SUPERMARKET OPERATOR AND OWNER OF THE 7ELEVEN CONVENIENCE STORES THE COMPANY SAYS IT'S PUTTING MORE EFFORT INTO DEVELOPING CHEAPER PRODUCTS OF ITS OWN PRIVATE BRANDS AREN'T A NEW PHENOMENON IN JAPAN BUT THE BRANDS' NEW ROCKBOTTOM PRICES HAVE SHOCKED RETAILERS AND CONSUMERS MOST SUPERMARKETS HAVE QUICKLY FOLLOWED DAIEI IN OFFERING THEIR OWN BRANDS OF BRAZILIAN ORANGE JUICE AT 30 TO 40 LESS THAN THE NATIONAL BRANDS CONSUMERS ARE SNAPPING UP PRIVATELABEL ITEMS AT A PACE THAT SURPRISES EVEN STORE MANAGERS IN ITS SUPERMARKETS DAIEI'S ORANGEJUICE SALES TOTALED 5050 KILOLITERS 13 MILLION GALLONS IN THE YEAR THROUGH MARCH 19 FIVE TIMES THE COMPANY'S ORIGINAL FORECAST OUR CHALLENGE IS TO SEE HOW FAR WE CAN LOWER PRICES OF GOODS IN THIS COUNTRY SAYS TAKANOBU SEKO WHO HEADS DAIEI'S PRIVATELABEL DIVISION HE SAYS MOST JAPANESE CONSUMERS WHO ANNUALLY DRINK ONLY A SIXTH AS MUCH ORANGE JUICE AS AMERICANS WOULD BUY CHEAPER BRAZILIAN ORANGE JUICE EVEN IF IT ISN'T AS TASTY AS THE FLORIDA VARIETY DAIEI SAYS IT EXPECTS ITS PRIVATELABEL ORANGEJUICE SALES TO RISE AT LEAST 10 THIS YEAR DAIEI'S SALES ARE ONLY A SMALL PART OF JAPAN'S TOTAL ORANGEJUICE MARKET WHICH TOTALED ABOUT 280000 KILOLITERS 74 MILLION GALLONS LAST YEAR BUT THE SUPERMARKET IS PUTTING A DENT IN THE SALES OF ITS US COMPETITORS SNOW DOLE CO A JOINT VENTURE BETWEEN DOLE FOOD AND SNOW BRAND MILK PRODUCTS CO SAYS ITS 1992 SALES OF ORANGE JUICE IN ONELITER CARTONS FELL FROM 1991 DESPITE THE OPENING OF THE JAPANESE MARKET THE COMPANY DECLINES TO GIVE SPECIFIC FIGURES NOW THE US COMPANIES ARE SCRAMBLING TO OFFER MOREPALATABLE PRICES AFTER CUTTING THE PRICE OF ITS ORANGE JUICE BY 10 TO 290 YEN A LITER LAST FALL DOLE STARTED TO OFFER DISCOUNTS IN CERTAIN STORES TO MATCH DAIEI'S 198YEN PRICE KIRIN TROPICANA INC A JOINT VENTURE BETWEEN MONTREALBASED SEAGRAM CO'S TROPICANA PRODUCTS UNIT AND KIRIN BREWERY CO'S SOFTDRINK DIVISION FOLLOWED WITH SIMILAR DISCOUNTS THEN THE PRICE WAR REALLY HEATED UP DAIEI CUT ITS PRICE AGAIN LAST MONTH TO 178 YENTHE LOWEST IN JAPAN FOR ORANGE JUICE MADE FROM CONCENTRATE SEIYU LAST MONTH INTRODUCED ITS OWN ORANGEJUICE BRAND ALSO AT 178 YEN A LITER SNOW DOLE WAS SURPRISED BY THE EXTENT OF THE PRIVATE BRANDS' POPULARITY SAYS COMPANY DIRECTOR MICHAEL YANG WE ARE CONCERNED HE SAYS JAPANESE ORANGEJUICE MARKETERS FEEL THREATENED TOO IN AN EFFORT TO LOWER PRICES ASAHI BREWERIES LTD LAST MONTH ADDED A NEW BRAND MADE FROM BRAZILIAN ORANGES IT USED TO SELL ONLY US ORANGE JUICE WE NEED TO PROVIDE GOOD PRODUCTS THAT ARE ALSO CHEAP SAYS A SPOKESMAN SNOW DOLE AND KIRIN TROPICANA ARE RESPONDING IN PART BY OFFERING PRODUCTS THE PRIVATE LABELS DON'T SUCH AS ORANGE JUICE BLENDED WITH PEACH AND PINEAPPLE JUICE AND DRINKS IN SMALL PACKAGES BUT IT'S GETTING HARDER TO DIFFERENTIATE BETWEEN PRODUCTS BECAUSE THE PRIVATE LABELS QUICKLY IMITATE A NATIONAL BRAND AND THEN NAIL IT ON PRICE DAIEI'S SAVINGS VANILLA ICE CREAM COMES IN A RECTANGULAR PACKAGE THAT LOOKS A LOT LIKE THAT OF BORDEN'S LADY BORDEN BRAND DAIEI EVEN BUYS ITS ICE CREAM WHICH IS SIMILAR BUT NOT IDENTICAL FROM THE SAME NEW ZEALAND SUPPLIER AS BORDEN THE PRICES ARE EASY ENOUGH TO TELL APART THOUGH SAVINGS COSTS 299 YEN A PINT LADY BORDEN 600 YEN IF WE COMPETE ONLY ON PRICE WE'RE LETTING OURSELVES FALL INTO A BOTTOMLESS POND SAYS TAKAYUKI SHIMIZU A MARKETING MANAGER AT BORDEN'S JAPANESE SUBSIDIARY BORDEN IS PROMOTING BIGGER QUARTSIZED CONTAINERS AND IS CONSIDERING CHANGING ITS SUPPLIER HE SAYS BUT THE US COMPANY IS STILL HURTING ITS SALES MAY FALL 20 SHORT OF ITS ORIGINAL GOAL OF 45 BILLION YEN 405 MILLION IN THE YEAR ENDING JULY 31 SAYS MR SHIMIZU BY NO MEANS CAN WE SAY WE'RE NOT AFFECTED BY DAIEI'S CHEAPER PRODUCT SAYS A SPOKESMAN FOR MEIJI MILK PRODUCTS CO A JAPANESE FOOD AND BEVERAGE MAKER BUT HE SAYS HIS COMPANY WON'T SLASH THE PRICE OF ITS BREUGE ICE CREAM WHICH SELLS FOR 550 YEN A PINT MEIJI STILL EXPECTS TO INCREASE SALES THIS YEAR BECAUSE IT CONSIDERS ITS PRODUCT SUPERIOR TO DAIEI'S PRIVATE BRAND HE ADDS OF COURSE SLASHING PRICES COULD EVENTUALLY BACKFIRE ON THE SUPERMARKETS THIS MAY HAVE AN ADVERSE IMPACT ON PROFITABILITY SAYS VICTORIA MELENDEZ AN ANALYST FOR THE TOKYO UNIT OF JARDINE FLEMING SECURITIES LTD THE STRATEGY ALSO GOES AGAINST THE GRAIN OF DAIEI'S FIVEYEAR PLAN TO BOOST ITS PROFIT MARGINS DAIEI'S MR SEKO CONCEDES THAT EVEN IF SALES RISE BY 20 TO 30 IN VOLUME OUR SALES IN YEN WILL STILL FALL STILL RETAILERS SAY THEY WILL KEEP CHURNING OUT THE CHEAPER PRIVATELABEL FOODS BECAUSE OF CONSUMERS LIKE MIEKO MATSUMOTO ON A RECENT WEEKEND AFTERNOON SHE IGNORED HER CHILDREN'S PLEA TO REACH FOR A HEAVILY ADVERTISED PREMIUM BRAND OF MILK AND INSTEAD WALKED OFF WITH A COUPLE OF CARTONS OF DAIEI'S CHEAPER PRIVATELABEL MILK WHO KNOWS WHAT THE REAL DIFFERENCE IS BETWEEN THE TWO SHE SAYS DAIEI'S BRAND IS PERFECTLY ACCEPTABLE 9304260092 930426 BUM HEARING AIDS INDISTINCT SPEECH PLAGUE SPELLING BEE BUT THESE ELDERLY CONTESTANTS QUIDNUNCS ABOUT WORDS HAVE ACTIVE VOCABULARIES BY CLARE ANSBERRY STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH HELEN MYERS SITS HANDS FOLDED AND LOOKING STRAIGHT AHEAD BEFORE A HUSHED CROWD ONEROUS SHE SAYS ONERESS THE AUDIENCE MOANS AND A SHAKEN HELEN WALKS SLOWLY DOWN THE STEPS OF THE STAGE DEFEATED I'M SO DISAPPOINTED IN MYSELF SHE SAYS I ALWAYS WON BEES IN THE EIGHTH GRADE THAT WAS 70 YEARS AGO BUT COMPETITIVE SPELLING DIES HARD NEARLY ALL OF THE 10 OTHER CHALLENGERS IN THIS MONTH'S ALLEGHENY COUNTY SENIOR CITIZENS' SPELLING CHAMPIONSHIP HAD AT LEAST ONE GRADESCHOOL BEE VICTORY TO THEIR CREDIT THEY WERE HOPING THIS TIME FOR ANOTHER WIN AND A FREE TRIP BY CAR OR TRAIN TO COATESVILLE PA FOR THE STATE SENIOR SPELLING BEE IN JUNE THE EVENTS DON'T HAVE THE BACKING NATIONALLY TELEVISED ELEMENTARYSCHOOL COMPETITIONS ENJOY THE FIRST NATIONAL SENIOR CITIZEN SPELLING BEE WHICH WAS TO HAVE TAKEN PLACE LAST YEAR HAD TO BE CALLED OFF FOR LACK OF FUNDING MOST LOCAL COMPETITIONS STEPPINGSTONES TO COUNTY AND STATE CONTESTS RELY ON LIBRARIANS AND TEACHERS AS JUDGES AND ON SERVICE ORGANIZATIONS OPTIMISTS AND ROTARIANS FOR INSTANCE FOR MONEY BUT THESE BEES HAVE LOYAL FOLLOWINGS NEW MEXICO FOR INSTANCE HAS HELD LOCAL COMPETITIONS IN ENGLISH AND SPANISH FOR 17 YEARS THE RULES HAVEN'T CHANGED MUCH SINCE GRANDMA WAS A GIRL NOR HAVE THE WORDS WHICH ARE SUPPLIED WHEREVER BEES ARE HELD BY SCRIPPS HOWARD INC OCCASION AND ACCOMMODATE REMAIN PERENNIAL STUMPERS WORDS ARE ALWAYS BEING ADDED TO THE LIST GINGIVITIS FAMILIAR TO DENTISTS IS A CURRENT FAVORITE THE BIGGEST IMPEDIMENTS TO OLDER CONTESTANTS SEEM TO BE FAULTY HEARING AIDS AND SOFTSPOKEN PRONOUNCERS WHO MAKE IT HARD TO DISTINGUISH BETWEEN SUBSIDY AND SUBSIDIARY AGERELATED OBSTACLES ASIDE OLDER FOLKS SHOULD BE ABLE TO OUTSPELL JUST ABOUT EVERYBODY ELSE THEY HAVE A LIFETIME OF ACCUMULATED WORD POWER AND ARE MORE PRECISE SAYS LORETTA ECHOLS A BEE COORDINATOR IN ARKANSAS ADDS ANNE ONDREY EXECUTIVE DIRECTOR OF ADULT RESOURCES INC A NONPROFIT SOCIALSERVICE AGENCY AS A GROUP THEY'RE WILD ABOUT CROSSWORD PUZZLES IN HIGH SCHOOL CHANCES ARE THEY MEMORIZED WORDSWORTH STUDIED LATIN AND FOR ENTERTAINMENT READ BOOKS FOR DOROTHY HOLLINGSWORTH THE DEFENDING PENNSYLVANIA SENIOR CHAMP A WORD PROCESSOR WITH SPELLCHECK IS AS ALIEN AS PHONETICS TO A TEENAGER TODAY THE POLITE 78YEAROLD WHO HAS AN UNABRIDGED DICTIONARY IN HER SITTING ROOM THINKS THAT BECAUSE DIAGRAMING SENTENCES IS OUT OF FASHION IN SCHOOLS TODAY PEOPLE DON'T RECOGNIZE THE OBJECT OF A PREPOSITION HENCE TV BROADCASTERS GO AROUND SAYING BETWEEN YOU AND I AS IF THEY WERE BEING PUNCTILIOUS ABOUT ENGLISH USAGE GLADYS DONALDSON AN 81YEAROLD RETIRED TEACHER AND A LOCAL RUNNERUP SPELLING CHAMP BLAMES THE DEARTH OF LINGUISTIC SKILLS ON A LAMENTABLE LOSS OF CORRECTNESS OF EVERYTHING OF DRESS OF MANNERS OF SPEECH OF SPELLING AND SHE IS THE FIRST TO ADMIT SHE ISN'T ALWAYS CORRECT HERSELF MRS DONALDSON MISSPELLED SEMAPHORE AT A RECENT ADULT RESOURCES SPELLING BEE MANY SENIOR CITIZENS JOIN THE COMPETITION TO INCREASE THEIR VOCABULARIES THE BEE IS A FORM OF CONTINUING EDUCATION SAYS ARLENE SNYDER DIRECTOR OF VINTAGE INC A SERVICE AGENCY FOR OLDER PEOPLE WHICH PLANNED THE ALLEGHENY COUNTY BEE LOOK AT CAROLINE CHESTER OF SEWICKLEY PA MRS CHESTER A RETIRED CONCERT VIOLINIST PARTICIPATED IN HER FIRST SPELLING BEE THIS YEAR AT ADULT RESOURCES I'M 95 YEARS OLD AND I DID VERY WELL SAYS MRS CHESTER WHO SPENT HER FIRST 60 YEARS IN ENGLAND WHERE SPELLING BEES WERE UNHEARDOF MRS CHESTER MADE IT THROUGH 10 ROUNDS BEFORE SHE WAS CUT OUT BY THE WORD SCALPEL I THOUGHT I HAD SAID THE LETTER L' BUT I DIDN'T I GUESS I WAS ABSENTMINDED FOR A SECOND OR TWO SHE SAYS ALTHOUGH MANY CONTESTANTS ARE FORMER PROFESSIONAL PEOPLE INCLUDING TEACHERS AND LIBRARIANS RUBY CRAIG OF MONETTE ARK DIDN'T MAKE IT PAST THE NINTH GRADE HER PARENTS COULDN'T AFFORD THE BOOKS AND IT WAS A FOURMILE WALK TO SCHOOL BUT SHE CONSIDERS HERSELF A RESPECTABLE SPELLER AND IS AN AVID READER OF LOCAL NEWSPAPERS AND ISSUES OF COSMOPOLITAN MAGAZINE HANDMEDOWNS FROM A FRIEND SHE WON THE LOCAL COMPETITION WENT ON TO BECOME STATE CHAMPION AND FROM THERE GOT TO GO TO OKLAHOMA FOR A FIVESTATE COMPETITION SHE DIDN'T TAKE FIRST PLACE BUT WON HER FIRST OF FOUR TROPHIES AND GOT TO SEE TULSA SHE DOESN'T WANT TO COMPETE ANYMORE HOWEVER FEARING SHE MIGHT WIN AGAIN AND HAVE TO GO SOMEWHERE I DON'T WANT TO SEE TULSA AGAIN SAYS THE 77YEAROLD MRS CRAIG WHEREVER CONTESTS ARE HELD MOST COMPETITIVE SENIOR SPELLERS ARE WOMEN ONE OBVIOUS REASON IS THAT THERE ARE MORE OLDER WOMEN IN THE POPULATION THAN OLDER MEN BUT A THEORY PROPOUNDED BY FEMALE PARTICIPANTS MANY OF WHOM WERE ONCE STENOGRAPHERS WHO WERE EXPECTED TO CORRECT THEIR BOSSES' MISSPELLINGS IS THAT WOMEN ARE SIMPLY BETTER SPELLERS WOMEN ARE MORE NITPICKY ABOUT THINGS SAYS MRS DONALDSON ONE SPELLINGBEE CHAMP FROM NEW MEXICO SYBIL CARLSON WHO SPENT 30 YEARS AT WESTERN UNION RECALLS THE FOLLOWING TELEGRAM FROM HER SUPERIOR I'M IN ALBAKERKY MRS CARLSON WHO HAS BEEN WINNING STATE COMPETITIONS SINCE 1986 HAS A LOT OF PLAQUES INCLUDING ONE THAT SPELLS HER NAME CYBIL FOR THE RECORD JERRY LAND ONE OF TWO MALE CONTESTANTS IN THE ALLEGHENY COUNTY BEE THIS YEAR WON IT BY CORRECTLY SPELLING THE WORD QUIDNUNC IT MEANS AN INQUISITIVE BUSYBODY HE DIDN'T STUDY HE SAYS BUT HE DOES READ A LOT AND IS BY NATURE A QUIDNUNC ABOUT WORDS SOME CHAMPS ARE A LITTLE MORE METHODICAL IN THEIR APPROACH MRS HOLLINGSWORTH THE PENNSYLVANIA WHIZ TOOK THE LIST OF 3000 WORDS THAT CONTESTANTS ARE GIVEN BEFOREHAND TO THE DOWNTOWN LIBRARY TO STUDY PRONUNCIATIONS SHE WOULD CLASSIFY THEM ACCORDING TO ENDINGS LIKE IBLY ABLY ETC SPELL THEM ALOUD AND TYPE THEM HER HUSBAND AL A 75YEAROLD FORMER COLLEGE CHEMISTRY TEACHER AND ADMITTED LOUSY SPELLER DRILLED HER I'M SO PROUD OF HER HE SAYS SHE TOOK CARE OF THE CHILDREN AND THE HOUSE AND HASN'T GOTTEN ANY KIND OF HONOR THE VICTORY SHE SAYS WAS THE HIGHLIGHT OF HER LIFE A RECEPTION WAS HELD IN HER HONOR IN HER FRONT ROOM SHE KEEPS HANDY A SCRAPBOOK FROM THE CONTEST HER CONGRATULATORY LETTER FROM THE MAYOR OF CASTLE SHANNON PA AND A LUCITE PLAQUE IN THE SHAPE OF PENNSYLVANIA INSCRIBED WITH FORMIDABLE SPELLING WORDS LIKE TURRIFEROUS AND DORSIFEROUS IT'S SOMETHING I CAN LOOK AT GLOAT OVER AND FEEL GOOD ABOUT SAYS MRS HOLLINGSWORTH ALTHOUGH SHE DIDN'T COMPETE THIS YEAR EVERY DAY EXCEPT SUNDAY SHE TAKES THREE WORDS AND PRONOUNCES SPELLS AND TYPES THEM I SPENT ALL THAT TIME STUDYING THEM SHE SAYS I DON'T WANT TO LOSE THAT KNOWLEDGE 9304260091 930426 HEALTH US COMPANIES SEEK TO MARKET ABORTION PILL BY ELYSE TANOUYE AND ROSE GUTFELD STAFF REPORTERS OF THE WALL STREET JOURNAL SMALL DRUG COMPANIES ARE LINING UP FOR THE JOB OF MAKING AND MARKETING THE ABORTION PILL RU486 BUT SOME ABORTIONRIGHTS ADVOCATES ARE STILL SKEPTICAL THAT THE DRUG WILL REACH MANY AMERICAN WOMEN SOON DESPITE AN AGREEMENT TO ALLOW THE ABORTION PILL IN THE US FOR TESTING BIG HURDLES STAND BETWEEN THE DRUG AND PHARMACY SHELVES THE BIGGEST HURDLES SAY ABORTIONRIGHTS ADVOCATES ARE BEING ERECTED BY THE PILL'S MAKER ROUSSELUCLAF SA OF FRANCE AND ITS GERMAN PARENT HOECHST AG I WORRY DOWN DEEP THAT THE DELAYS COULD BECOME INDEFINITE SAID ELEANOR SMEAL PRESIDENT OF THE FEMINIST MAJORITY FOUNDATION AS PART OF ITS AGREEMENT REACHED LAST WEEK TO LICENSE THE DRUG TO THE POPULATION COUNCIL A US RESEARCH ORGANIZATION ROUSSEL INSISTED A US MANUFACTURER BE FOUND TO PRODUCE THE DRUG ROUSSEL WILL SUPPLY ONLY THE DRUGS USED IN TESTING A NUMBER OF COMPANIES HAVE ALREADY EXPRESSED INTEREST IN GETTING INVOLVED PAMELA MARALDO PRESIDENT OF PLANNED PARENTHOOD FEDERATION OF AMERICA SAID HALF A DOZEN COMPANIES HAVE CALLED SEEKING TO TEAM UP WITH THE ORGANIZATION TO MAKE AND DISTRIBUTE THE DRUG COMPANIES SUCH AS ADEZA BIOMEDICAL CORP OF SUNNYVALE CALIF CABOT MEDICAL CORP OF LANGHORNE PA AND GYNEX PHARMACEUTICAL INC OF VERNON HILLS ILL IN THE PAST HAVE EXPRESSED INTEREST IN MARKETING THE DRUG STEPHEN SIMES PRESIDENT OF GYNEX SAID THE COMPANY PLANS TO CONTACT THE POPULATION COUNCIL SHORTLY BUT MUST COMPLETE ITS PLANNED MERGER WITH BIOTECHNOLOGY GENERAL CORP BEFORE MAKING ANY DECISION OVER THE NEXT SEVERAL MONTHS THE POPULATION COUNCIL WILL EVALUATE COMPANIES TO FIND ONE THAT MEETS FOOD AND DRUG ADMINISTRATION REQUIREMENTS OF SUFFICIENT FINANCIAL STABILITY AND SIZE TO PRODUCE THE QUANTITIES NEEDED EVEN AFTER A COMPANY IS SELECTED IT WILL TAKE TWO YEARS TO GAIN FDA APPROVAL TO MARKET THE DRUG SAID WAYNE BARDIN DIRECTOR OF THE POPULATION COUNCIL'S CENTER FOR BIOMEDICAL RESEARCH ATTRACTING THE COMPANIES IS THE PILL'S POTENTIAL MARKET OF THE 16 MILLION ABORTIONS PERFORMED EACH YEAR IN THE US HALF TAKE PLACE IN THE FIRST NINE WEEKS WHEN RU486 COULD BE USED ANOTHER 39 TAKE PLACE BEFORE THE TWELFTH WEEK AND MANY OF THOSE WOMEN MIGHT HAVE THEIR ABORTIONS EARLIER IF RU486 WERE AVAILABLE ACCORDING TO THE ALAN GUTTMACHER INSTITUTE A RESEARCH CONCERN 62 OF FRENCH PROCEDURES IN FRANCE RU486 WAS SELECTED BY MORE THAN 62 OF WOMEN SEEKING AN ABORTION IN A 1990 STUDY DEPENDING ON THE DRUG'S PRICE THE MARKET FOR RU486 COULD BE BETWEEN 200 MILLION TO 400 MILLION FOR ABORTIONS ACCORDING TO HEMANT SHAH AN INDEPENDENT DRUG ANALYST IT COULD BE BIGGER HE SAYS IF THE DRUG IS USED AS A MORNINGAFTER CONTRACEPTIVE A ROLE IN WHICH RU486 HAS BEEN FOUND EFFECTIVE MR SIMES OF GYNEX SAID THAT WHILE IT WILL BE MORE COSTLY TO PRODUCE THE DRUG IN THE US THAN SIMPLY TO HAVE ROUSSEL SUPPLY IT THE DRUG WILL BE COMPETITIVE WITH SURGICAL ABORTIONS IN 1989 SURGICAL ABORTIONS COST AN AVERAGE OF 250 ACCORDING TO THE GUTTMACHER INSTITUTE ANOTHER BIG HURDLE IS FINDING A SUPPLIER OF A PROSTAGLANDIN A DRUG USED WITH RU486 TO INDUCE ABORTIONS IN EUROPE WOMEN WHO TAKE RU486 RETURN TO THE CLINIC AFTER TWO DAYS TO TAKE THE PROSTAGLANDIN WHICH ENSURES THAT THE ABORTION IS COMPLETE CYTOTEC GD SEARLE & CO'S BRAND OF PROSTAGLANDIN WHICH IS SOLD IN THE US TO PREVENT ULCERS IN PEOPLE TAKING ARTHRITIS MEDICATIONS IS USED WITH RU486 FOR ABORTIONS IN FRANCE BUT THE COMPANY DOESN'T HAVE ANY PLANS TO SEEK APPROVAL FOR USE IN US ABORTIONS A COMPANY SPOKESMAN SAID HE ADDED THAT THE COMPANY WAS REQUIRED IN FRANCE BY THE GOVERNMENT TO SELL THE DRUG FOR USE IN ABORTIONS UPJOHN CO AND RHONEPOULENC RORER INC A UNIT OF RHONEPOULENC SA ALSO HAVE PRODUCTS CONTAINING PROSTAGLANDIN BUT THE COMPANIES SAID THEY DON'T INTEND TO SEEK US APPROVAL TO SELL THE DRUGS FOR USE IN ABORTIONS ANY MANUFACTURER OF RU486 WILL HAVE TO BE WILLING TO FACE THE THREAT OF A BOYCOTT OF ITS PRODUCTS BY ANTIABORTION PROTESTERS AND POSSIBLY THE THREAT OF TERRORISM A HEIGHTENED CONCERN IN THE WAKE OF THIS YEAR'S SLAYING OF A DOCTOR AT AN ABORTION CLINIC IN FLORIDA MR SIMES OF GYNEX SAID PERSONAL SAFETY IS A VERY BIG CONCERN FOR THE EMPLOYEES OF THIS COMPANY ANTIABORTION GROUPS IN FACT HAVE THREATENED TO BOYCOTT PRODUCTS OF HOECHST AG'S US SUBSIDIARY HOECHST CELANESE CORP AND ITS UNIT HOECHSTROUSSEL PHARMACEUTICALS INC WHICH IS MINORITY OWNED BY ROUSSELUCLAF THE NATIONAL RIGHT TO LIFE COMMITTEE SAID IT WILL BOYCOTT HOECHST REGARDLESS OF WHAT FIRM BECOMES THE US DISTRIBUTOR HOECHST AG IS ATTEMPING TO HIDE BEHIND SMALL US FIRMS AND THE PROABORTION POPULATION COUNCIL THE GROUP SAID IN A PRESS RELEASE IT SEEMS COMPLETELY CRAZY FOR A COMPANY LIKE HOECHST WHICH SELLS A LOT OF PRODUCTS TO BE INVOLVED IN A DEATH DRUG SAID RICHARD GLASOW EDUCATION DIRECTOR OF THE COMMITTEE A HOECHST SPOKESWOMAN SAID THEIR ACTIONS WOULD BE MISDIRECTED BECAUSE WE AREN'T THE COMPANY INVOLVED IN THE DECISION MAKING TO INTRODUCE THE DRUG IN THE US EDOUARD SAKIZ PRESIDENT OF ROUSSELUCLAF SAYS OF COURSE WE ARE CONCERNED ABOUT A BOYCOTT BUT WHAT CAN WE DO 9304260089 930426 POLITICS & POLICY FINAL TAILHOOK REPORT PORTRAYS A NAVY TROUBLED BY SOCIAL CHANGES AT HOME BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON TURMOIL OVER THE TAILHOOK SCANDAL HAS OBSCURED THE FACT THAT THE NAVY LATELY HAS BEEN CHANGING MILITARILY AT WARP SPEED AND IS SEEN BY MANY AS THE SERVICE THAT IS BEST ADJUSTING TO THE POSTCOLD WAR WORLD BUT AS THE SCANDAL DEMONSTRATED THE NAVY IS HAVING TROUBLE ADJUSTING TO SOCIAL CHANGES AT HOME PARTLY AS A RESULT OF THE SCANDAL THE NAVY OVER THE PAST YEAR HAS UNDERGONE A SELFEXAMINATION A LOT OF COBWEBS AND TRADITIONS HAVE BEEN JARRED LOOSE BY THE SHOCK OF THIS ONE NAVY OFFICER SAID AFTER THE PENTAGON'S INSPECTOR GENERAL RELEASED THE FINAL REPORT ON WHAT HAPPENED AT THE NAVAL AVIATORS' CONVENTION IN SEPTEMBER 1991 THOUGH IT DOESN'T CONTAIN MANY NEW REVELATIONS TAILHOOK II IS NOTABLE FOR THE DEPTH AND BREADTH OF THE EVIDENCE COMPILED ON LEWD DRUNKEN AND CRIMINAL BEHAVIOR BY LARGE NUMBERS OF NAVAL OFFICERS AFTER INTERVIEWING 2911 PEOPLE AND GIVING 34 LIEDETECTOR TESTS THE INSPECTOR GENERAL ACCUSED 140 OFFICERS OF BEING INVOLVED IN INDECENT ASSAULTS INDECENT EXPOSURE CONDUCT UNBECOMING AN OFFICER DERELICTION IN DUTY AND MAKING FALSE STATEMENTS THE NAVY AND THE JUSTICE DEPARTMENT WILL NOW REVIEW THEIR CASES AND OFFICIALS AT THE INSPECTOR GENERAL'S OFFICE HAVE INDICATED THEY ANTICIPATE SOME CRIMINAL PROSECUTIONS THE REPORT'S IMPACT IS LIKELY TO REVERBERATE ACROSS THE MILITARY AND INSIDE THE NAVY THE EVIDENCE THAT NAVAL OFFICERS EXPOSED THEMSELVES AND HAD ORAL SEX AND INTERCOURSE IN PUBLIC MAY UNDERCUT THE ARGUMENT ADVANCED BY SENATE ARMED SERVICES COMMITTEE CHAIRMAN SEN SAM NUNN D GA AND OTHERS THAT THE BAN ON GAY PEOPLE IN THE MILITARY SHOULDN'T BE LIFTED BECAUSE IT WOULD VIOLATE THE SEXUAL PRIVACY RIGHTS OF SERVICE MEMBERS AND EVIDENCE OF MILITARY MISOGYNY SUCH AS A TSHIRT SOLD BY ONE NAVAL FIGHTER SQUADRON STATING WOMEN ARE PROPERTY IS LIKELY TO SPEED THE PENTAGON'S MOVE TOWARD LETTING WOMEN FLY COMBAT MISSIONS BUT IN THE LONG RUN THE CHANGES TAILHOOK HAS ENCOURAGED WITHIN THE NAVY MAY BE EVEN MORE FARREACHING COMING ON THE HEELS OF THE PERSIAN GULF WAR IN WHICH THE SEA SERVICE WAS STUNNED TO FIND ITSELF A SIDESHOW TO THE AIR FORCE'S AIR WAR AND THE ARMY'S GROUND ATTACK TAILHOOK SHOOK THE NAVY HISTORICALLY THE MOST TRADITIONBOUND OF THE MILITARY SERVICES IT WAS A WATERSHED EVENT THAT HAS BROUGHT ABOUT CULTURAL CHANGE ADM FRANK KELSO CHIEF OF NAVAL OPERATIONS SAID FRIDAY GENERALLY CONSIDERED A DECENT AND THOUGHTFUL MAN ADM KELSO'S REPUTATION IS PROBABLY IRREPARABLY DAMAGED BECAUSE TAILHOOK OCCURRED ON HIS WATCH NEVERTHELESS HE IS LIKELY TO BE REMEMBERED FOR FOSTERING A GROUP OF ICONOCLASTIC ADMIRALS LED BY OXFORDEDUCATED WILLIAM OWENS PAUL DAVID MILLER AND DAVID OLIVER JR AS A RESULT OF ADM KELSO'S EFFORTS THE NAVY IS SEEN BY MANY IN CONGRESS AND IN THE DEFENSE DEPARTMENT'S CIVILIAN LEADERSHIP AS OUTSTRIPPING THE ARMY AND THE AIR FORCE IN ADJUSTING TO THE POSTCOLD WAR WORLD THEY'RE WELLGROUNDED CONCEPTUALLY ON WHERE THEY'RE GOING SAID ONE CONGRESSIONAL AIDE AFTER YEARS OF TRYING THE NAVY LAST YEAR WAS ABLE TO BREAK DOWN THE TRADITIONAL BARRIERS BETWEEN ITS SUBMARINE SHIP AND AVIATION ARMS A SEPARATION THAT AT TIMES HAS MADE IT ACT LIKE THREE COMPETING SERVICES IT ALSO ISSUED FROM THE SEA A PAPER THAT REORIENTED THE NAVY FROM ITS OLD COLD WAR MISSION OF BATTLING THE SOVIET NAVY FOR CONTROL OF THE HIGH SEAS TO ITS NEW WORLD ORDER MISSION OF SUPPORTING THE COASTAL OPERATIONS OF US GROUND FORCES AS PART OF THAT NEW MISSION THE NAVY BEGAN PLANNING TO OPERATE IN CONJUNCTION WITH THE ARMY AND AIR FORCE THIS RETHINKING ALSO FORCED THE NAVY TO ACCEPT THAT THERE WASN'T MUCH USE FOR ITS MASSIVE ANTISUBMARINE WARFARE CAPABILITY AND THE SEA SERVICE BEGAN TO FACE UP TO SOME OF THE TECHNOLOGICAL VULNERABILITIES REVEALED BY THE GULF WAR SUCH AS PRECISIONGUIDED MUNITIONS THIS YEAR THE NAVY HAS RECEIVED PLAUDITS FOR ITS SMOOTH HANDLING OF BUDGET CUTS ORDERED BY DEFENSE SECRETARY LES ASPIN AND FOR THE SWEEPING SCOPE OF ITS CURRENT ROUND OF PROPOSALS FOR BASE CLOSINGS THAT PERFORMANCE CAME IN SHARP CONTRAST TO THE NAVY'S ACTIONS DURING THE 1991 ROUND OF CLOSURES WHICH PROVOKED ACCUSATIONS THAT THE BRANCH STONEWALLED AND EVEN LIED TO PREVENT FACILITY CLOSINGS STILL THE NAVY HAS PROBLEMS DESPITE ITS MILITARY ADJUSTMENTS THE SERVICE HAS A HARD TIME ACCEPTING SOCIAL CHANGE ASIDE FROM ITS INEPT DEALINGS WITH WOMEN BLACKS ARE SPARSE AT GATHERINGS OF NAVAL OFFICERS AND THE BRANCH IS ARGUABLY THE MOST HOMOPHOBIC OF THE SERVICES ACCOUNTING FOR HALF OF ALL MILITARY DISCHARGES FOR HOMOSEXUALITY AND FOR TWOTHIRDS OF ALL DEFENSE DEPARTMENT HOMOSEXUALITY INVESTIGATIONS BUT PARTLY AS A RESULT OF TAILHOOK IT IS SHEDDING A LOT OF ITS OLD WAYS AND HAS MADE SEXUAL HARASSMENT LIKE RACIAL DISCRIMINATION A CAREERENDING OFFENSE THE NAVY FACES EVEN MORE RADICAL CHALLENGES LIKE THE OTHER SERVICES IT IS LIKELY TO CHANGE MORE IN THE NEXT FIVE YEARS THAN IN THE PAST 10 IF ONLY BECAUSE OF LOOMING DEFENSE BUDGET CUTS FEW IN THE BRANCH HAVE ACCEPTED THAT THE NAVY IS LIKELY TO BE OPERATING FEWER THAN 300 SHIPS BY THE END OF THE DECADE COMPARED WITH 457 TODAY EVEN THE NAVY'S ADMIRERS INSIST THE SERVICE HAS TO THINK MORE CREATIVELY ABOUT THE FUTURE USE OF THE MOST IMPORTANT OF THOSE SHIPS ITS AIRCRAFT CARRIERS SUCH AS WHETHER THEY CAN BE THE COMMAND AND CONTROL PLATFORM FOR A THEATER OF MILITARY OPERATIONS RATHER THAN JUST A FORM OF LONGRANGE NAVAL ARTILLERY CRITICS MEANWHILE ARGUE THAT THE NAVY'S NEW TALK OF SUPPORTING AMPHIBIOUS OPERATIONS HAS LEFT IT ADRIFT I DON'T THINK IT'S REALLY FACING UP TO THE LONGTERM PROBLEM OF WHAT THE CARRIERS ARE EXPECTED TO DO BESIDES PARADE UP AND DOWN THE MEDITERRANEAN AND THE SOUTH CHINA SEA SAID THE BROOKINGS INSTITUTION'S WILLIAM KAUFMANN THERE REALLY HASN'T BEEN A DEFINED MISSION FOR THE CARRIERS EXCEPT TO ESTABLISH A PRESENCE AND AT 3 BILLION OR 4 BILLION A YEAR TO OPERATE A CARRIER BATTLE GROUP THAT'S AN EXPENSIVE WAY TO ESTABLISH A PRESENCE IN ADDITION NAVAL AVIATION FACES THE WRENCHING PROSPECT OF BEING STRIPPED BY THE PENDING REORGANIZATION OF THE MILITARY ESTABLISHMENT OF ITS DEEP STRIKE OR LONGRANGE BOMBING MISSION AND THE NAVY STILL HASN'T FIGURED OUT HOW TO KEEP ALIVE THE INDUSTRIAL CAPACITY TO BUILD NUCLEAR SUBMARINES AT A TIME WHEN IT WON'T NEED NEW SUBMARINES FOR SEVERAL YEARS 9304260088 930426 INTERNATIONAL PEARSON PLC BEGINS FRIENDLY TAKEOVER OF THAMES TELEVISION IN ADDITION TO THE FINANCIAL TIMES NEWSPAPER PEARSON PUBLISHES MAGAZINES AND BOOKS OWNS AND RUNS ENTERTAINMENT PARKS OWNS THE ROYAL DOULTON CHINA COMPANY AND HAS A 50 INTEREST IN INVESTMENT BANKERS LAZARD BROTHERS IN LONDON AND A 9 PARTNERSHIP INTEREST IN THE LAZARD HOUSES IN NEW YORK AND PARIS UK LAW BARS PUBLISHERS OF NEWSPAPERS FROM OWNING A TELEVISION STATION OUTRIGHT THAMES LOST ITS BROADCASTING FRANCHISE FOR LONDON AT THE END OF LAST YEAR BUT STILL PRODUCES TV PROGRAMS MANY OF WHICH APPEAR ON THE US PUBLIC BROADCASTING SYSTEM FRANK BARLOW PEARSON'S MANAGING DIRECTOR SAID THE THAMES DEAL REPRESENTS PEARSON'S BEST OPPORTUNITY TO USE ITS PUBLISHING TITLES FOR TV DISTRIBUTION BOOK PUBLISHING IS ANALOGOUS TO PROGRAM MAKING SO WE REGARD IT AS A NATURAL HE SAID TV IS EXPLODING ALL OVER EUROPE AND IN ASIA AND WE WANT TO BE A PART OF IT MR BARLOW SAID PEARSON PROBABLY WOULD USE THE STAFF AND RESOURCES OF THE FINANCIAL TIMES AND ITS PENGUIN IMPRINT TO CREATE PROGRAMS AND LICENSE CHARACTERS FOR OTHER PRODUCTIONS PEARSON OFFERED 200 PENCE 311 IN CASH FOR EACH THAMES SHARE A 14 PREMIUM OVER THAMES'S CLOSING PRICE ON THE LONDON STOCK EXCHANGE LAST THURSDAY OF 175 PENCE UK RECORDCOMPANY THORN EMI WHICH HOLDS 5885 OF THAMES AGREED TO THE OFFER 9304260087 930426 EXCHICAGO BANKER ENTERS PLEA OF GUILTY TO FEDERAL CHARGES SPECIAL TO THE WALL STREET JOURNAL CHICAGO THE FORMER CHAIRMAN OF A CHICAGO BANK PLEADED GUILTY TO FEDERAL CHARGES OF BANK FRAUD BRIBERY AND ARSON JAMES E WELLS ADMITTED TO BRIBING FORMER ILLINOIS STATE TREASURER JEROME COSENTINO IN RETURN FOR THE DEPOSIT OF STATE FUNDS IN HIS COSMOPOLITAN NATIONAL BANK MR WELLS WHO GREW WEALTHY BY EXPANDING HIS FAMILY'S TRUCKING COMPANY APPROVED MORE THAN 500000 IN UNSECURED LOANS IN THE LATE 1980S TO A FINANCIALLY STRAPPED TRUCKING BUSINESS OWNED BY THE STATE OFFICIAL AND GRANTED THE BUSINESS 16 MILLION IN OVERDRAFT CREDIT IN RETURN MR COSENTINO DEPOSITED MILLIONS IN STATE FUNDS IN COSMOPOLITAN BANK REACHING A PEAK OF 23 MILLION IN 1989 MR COSENTINO EARLIER PLEADED GULITY TO BANK FRAUD AND WAS SCHEDULED TO TESTIFY AGAINST MR WELLS MR WELLS TOOK CONTROL OF CLOSELY HELD COSMOPOLITAN BANK IN 1986 AND SET IT ON A COURSE OF AGGRESSIVE LENDING THAT CONTRIBUTED TO ITS DOWNFALL REGULATORS SEIZED THE BANK AS INSOLVENT IN 1990 AND SOLD IT TO ANOTHER FINANCIAL INSTITUTION MR WELLS ADMITTED IN FEDERAL COURT TO PAYING AN ARSONIST IN 1980 TO BURN DOWN A CHICAGO WAREHOUSE IN WHICH HE OWNED AN INTEREST MR WELLS EVENTUALLY COLLECTED ABOUT 500000 IN INSURANCE PROCEEDS AFTER THE FIRE MR WELLS ALSO PLEADED GUILTY TO BANK FRAUD FOR DIVERTING BANK FUNDS FOR HIS PERSONAL USE AND TO FILING A FALSE INCOME RETURN IN 1988 THE 52YEAROLD MR WELLS HAS BEEN INCARCERATED SINCE NOVEMBER 1991 WHEN HE WAS ARRESTED IN FLORIDA HE NOW FACES UP TO 20 YEARS IN PRISON 9304260086 930426 INVESTMENT MANAGERS GET PROBATION TERMS IN PARTNERSHIP CASE NEW YORK TWO OIL AND GAS INVESTMENT MANAGERS WERE SENTENCED TO FIVE YEARS PROBATION FOR DUPING LIMITEDPARTNERSHIP INVESTORS FRANK H SEYER 66 YEARS OLD OF WESTON CONN AND RICHARD G LEVINE 61 OF LAWRENCE NY EACH PLEADED GUILTY IN MARCH 1992 TO ONE COUNT OF MAIL FRAUD IN CONNECTION WITH A LIMITED PARTNERSHIP THEY RAN FROM 1983 TO 1986 FEDERAL PROSECUTORS ALLEGED THAT INVESTORS WERE DUPED OUT OF 15 MILLION BUT AN ATTORNEY FOR ONE OF THE MEN SAID THE AMOUNT INVESTORS LOST WAS LESS THAN 15 MILLION US DISTRICT JUDGE SHIRLEY WOHL KRAM IN IMPOSING THE PROBATIONARY PERIODS DIDN'T FINE THE MEN OR ORDER RESTITUTION FEDERAL PROSECUTORS SAID MR SEYER AND MR LEVINE RAN A PONZI SCHEME IN WHICH MONEY FROM NEWER INVESTORS WAS USED TO PAY PREVIOUS INVESTORS THE CASE INVOLVED ONE PARTNERSHIP OUT OF 38 THAT THE MEN MANAGED ALL THE PARTNERSHIPS WERE RUN THROUGH A COMPANY THAT THEY HEADED REXPLORE INC WHICH DEVELOPED LEASED AND OPERATED WELLS IN KENTUCKY AND TEXAS BEATRICE H SALTENSMITH A MANHATTAN ATTORNEY FOR MR LEVINE SAID THE PROSECUTORS' NUMBERS ABOUT INVESTOR LOSSES WERE INFLATED AND THAT INVESTORS GOT SUBSTANTIAL TAX BENEFITS DISTRIBUTIONS AND OTHER BENEFITS MR SEYER COULDN'T BE REACHED FOR COMMENT 9304260085 930426 PHILADELPHIA RECEIVES A DOSE OF GOOD NEWS MOODY'S RAISES RATING NEW YORK MOODY'S INVESTORS SERVICE INC GAVE A NOD OF RESPECT LAST WEEK TO THE BUDGET FINESSE OF PHILADELPHIA MAYOR EDWARD RENDELL AND RAISED ITS RATING ON THE CITY'S BONDS A NOTCH MOODY'S WHICH HAS BEEN THE TOUGHEST ON PHILADELPHIA AMONG WALL STREET'S MAJOR CREDITRATING AGENCIES UPGRADED ITS RATING TO BA FROM B ON ABOUT 865 MILLION OF THE CITY'S GENERAL OBLIGATION BONDS UNLIKE STANDARD & POOR'S CORP AND FITCH INVESTORS SERVICE MOODY'S DIDN'T RAISE ITS RATING LAST YEAR WHEN MR RENDELL UNVEILED A PLAN TO RESTORE FINANCIAL STABILITY ALL THREE AGENCIES NOW RATE THE CITY'S BONDS AT THE HIGH END OF THE JUNKBOND RANGE IT COULD TAKE ANOTHER YEAR HOWEVER FOR PHILADELPHIA TO PROVE IT HAS THE FINANCIAL DISCIPLINE TO WARRANT INVESTMENTGRADE STATUS MOODY'S ANALYST KARL JACOB INDICATED IN AN INTERVIEW STANDARD & POOR'S ANALYST RICHARD LARKIN ALSO SAID S&P WILL BE LOOKING FOR A LONG TRACK RECORD BEFORE BOOSTING THE CITY'S BONDS TO INVESTMENTGRADE STATUS S&P WHICH RATES THE CITY'S BONDS SINGLE B IS PLANNING TO REVIEW ITS OPINION THIS WEEK FITCH UPGRADED ITS RATING LAST MAY TO BB FROM B MOODY'S MR JACOB PRAISED THE RENDELL ADMINISTRATION FOR ITS BUDGETING SKILLS CALLING IMPRESSIVE THE CITY'S WILLINGNESS TO TINKER WITH INITIATIVES THAT AREN'T SUCCESSFUL WHILE KEEPING THOSE THAT ARE HE ALSO LAUDED THE VASTLY IMPROVED COOPERATION BETWEEN THE MAYOR'S OFFICE AND THE CITY COUNCIL CALLING THEIR RAPPORT CRITICAL TO THE CITY'S BUDGET SUCCESS CITY OFFICIALS ACKNOWLEDGED THEY'RE NOT OUT OF THE WOODS YET MR RENDELL CALLED THE NEWS EXTREMELY HEARTENING BUT ADDED WE STILL HAVE SOME WORK TO DO MOODY'S PRAISED WHAT IT CALLED THE FIRST TRULY BALANCED BUDGET IN SEVEN YEARS AND CALLED THE BUDGET'S CONSERVATIVE REVENUE AND SPENDING ASSUMPTIONS CONSISTENT WITH THE CITY'S FIVEYEAR PLAN FAVORABLE LABOR CONCESSIONS REACHED LAST YEAR AFTER A STRIKE THAT LASTED ONLY 16 HOURS HAVE BEEN CRITICAL TO THE CITY'S RECOVERY THE AGENCY NOTED BUT PHILADELPHIA COULD BE FORCED TO HUNT FOR MORE SAVINGS IF IT DOESN'T WIN AN ARBITRATION DISPUTE OVER FIREFIGHTERS' PAY MR JACOB NOTED THE CITY WON A SIMILAR DISPUTE OVER POLICEMEN'S PAY WHICH WILL SAVE IT ABOUT 40 MILLION A YEAR HE ESTIMATED THE POLICEPAY ARBITRATION AWARD HE ADDED REMAINS SUBJECT TO APPEAL