AMERICAN NEWSPAPERS ARE PLUGGING BACK INTO THE MARKET FOR ELECTRONIC PUBLISHING A BUSINESS THEY LARGELY ABANDONED AFTER HIGHPROFILE FAILURES IN THE 1980S AS PUBLISHERS MEET TODAY IN BOSTON AT THE NEWSPAPER ASSOCIATION OF AMERICA CONVENTION ONE HOT TOPIC WILL BE HOW TECHNOLOGICAL ADVANCES WILL ENABLE READERS TO CALL UP THE DAILY PAPER AND MYRIAD RELATED SERVICES USING DESKTOP OR HANDHELD COMPUTERS IN THE LAST YEAR INDUSTRY GIANTS LIKE KNIGHTRIDDER INC TRIBUNE CO AND WASHINGTON POST CO HAVE MADE RENEWED COMMITMENTS TO DEVELOP WHAT COULD BECOME MASSMARKET ELECTRONIC NEWSPAPER PRODUCTS KNIGHTRIDDER HAS ESTABLISHED AN INFORMATION DESIGN LABORATORY IN BOULDER COLO WHERE A PORTABLE ELECTRONIC NEWSPAPER TABLET IS BEING DEVELOPED ALSO IN BOULDER AN APPLE COMPUTER INC DIVISION IS STUDYING HOW TO MAKE ADVERTISING WORK IN ELECTRONIC PUBLISHING THE CHICAGO TRIBUNE IS TESTING GETTING AN ELECTRONIC VERSION OF THE PAPER TO CHICAGOANS BY 8 AM EVENTUALLY THE TRIBUNE COULD BE BEAMED TO THE HANDHELD COMPUTERS BEING DEVELOPED BY APPLE TANDY CORP AND CASIO COMPUTER CO AND OTHERS DOW JONES & CO PUBLISHER OF THE WALL STREET JOURNAL IS DEVELOPING ELECTRONIC NEWS PRODUCTS FOR COMPUTERS AND PERSONAL COMMUNICATORS AND HAS PLANS FOR AN ELECTRONIC JOURNAL GANNETT CO OFFERS SPECIALIZED ONLINE BUSINESS REPORTS INTERACTIVE SPORTS PROGRAMS AND WEATHER REPORTS PUBLISHERS SAY THEIR EARLIER FORAYS INTO ELECTRONIC PUBLISHING WERE MARRED BY OVERLY AMBITIOUS EXPECTATIONS KNIGHTRIDDER'S VIEWTRON FOR EXAMPLE ALLOWED SUBSCRIBERS TO CALL UP THE DAY'S PAPER PLAY VIDEO GAMES SEND ELECTRONIC MAIL AND BANK AND SHOP AT HOME BUT VIEWTRON'S TRANSMISSION SPEED WAS SLOW AND THE PROJECT HAD TOO LARGE A COST STRUCTURE COMPANY EXECUTIVES SAY IT DIDN'T HELP THAT TERMINALS COST 600 TO OWN AND 3995 A MONTH TO RENT THE SERVICE DREW ONLY 20000 SUBSCRIBERS VIEWTRON WAS CLOSED IN 1986 AFTER THREE YEARS AND 50 MILLION INTIMIDATED BY SUCH LOSSES MOST PUBLISHERS STILL HAVEN'T VENTURED FAR BEYOND LOWTECH FAX EDITIONS AND AUDIOTEXT SERVICES THAT SPEW STOCK QUOTES AND SPORTS SCORES BUT THE TECHNOLOGY HAS CHANGED SINCE THE FIRST ILLFATED GENERATION OF ELECTRONIC NEWSPAPERS AND CONSUMERS ARE MORE COMFORTABLE USING IT DATA CAN ALREADY BE SENT FASTER THROUGH PHONE LINES OR BY SATELLITE AND A NEXT GENERATION OF HANDHELD COMPUTERS WILL BE ABLE TO ACT AS MOBILE ELECTRONIC NEWSPAPERS WITH INTERACTIVE TV SERVICES ALREADY IN THE WORKS THE DEMAND FOR INSTANT INFORMATION AND NEWS OVER PHONE OR CABLE LINES WILL EXPAND GREATLY AND NEWSPAPERS WANT TO BE THE LEADING PROVIDERS OF THAT CONTENT WE ARE GETTING NEARER TO CHEAPER FASTER EASIER ELECTRONIC DELIVERY OF NEWS SAYS W RUSSELL NEUMAN DIRECTOR OF THE COMMUNICATIONS RESEARCH GROUP AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY'S MEDIA LAB MR NEUMAN WHO IS SCHEDULED TO DISCUSS THE NEW MEDIA LANDSCAPE AT THE NEWSPAPER GROUP'S MEETING ADDS PUBLISHERS ARE EYEING ELECTRONIC MEDIA WARILY BUT THEY KNOW THEY HAVE TO INVEST STRATEGICALLY NOW TO FIND A PLACE IN IT NEWSPAPER PUBLISHERS HAVE THE MOST TO FEAR FROM THE REGIONAL BELL OPERATING COMPANIES WHICH ARE NO LONGER PROHIBITED FROM INVESTING IN TELEPHONE INFORMATION SERVICES SOME OF THE BABY BELLS SUCH AS BELL ATLANTIC CORP'S NEW JERSEY BELL TELEPHONE CO PLAN TO REPLACE THEIR COPPER WIRE NETWORKS WITH FIBER OPTICS THAT COULD ONE DAY PROVIDE THEM AN ELECTRONIC HIGHWAY ABLE TO TRANSMIT ELECTRONIC NEWS AND CLASSIFIED SERVICES BY VOICE VIDEO AND TEXT STRAIGHT TO THE HOME THROUGH PHONE LINES THE PAYOFF FOR PUBLISHERS' ELECTRONIC VENTURES IS STILL FAR DOWN THE ROAD UNLIKE PREVIOUS VENTURES PUBLISHERS ARE FIGURING THEIR ONLINE AND AUDIOTEXT SERVICES WILL HAVE TO BE SUBSCRIBER SUPPORTED FOR NOW AT LEAST INSTEAD OF RELYING ON ADVERTISERS AND PUBLISHING EXECUTIVES CONCEDE THEY EXPECT SOME READER RESISTANCE PEOPLE ARE NOT ACCUSTOMED TO PAYING A LOT SAY 4 A DAY FOR SERIOUS INFORMATION SAYS ELIZABETH ST J LOKER A WASHINGTON POST VICE PRESIDENT LOOK AT THE FUSS OVER CABLE RATES PEOPLE ARE PARTICULAR ABOUT WHAT THEY SPEND MONEY ON HER COMPANY IN ADDITION TO ITS EXPANDING AUDIOTEXT AND FAX LINES AND A CDROM VERSION OF NEWSWEEK IS IN THE EARLY STAGES OF DEVELOPING A MULTIMEDIA ELECTRONIC NEWSPAPER PUBLISHERS ARE PUSHING AHEAD ANYWAY IF ONLY BECAUSE OF THE DECLINING FUNDAMENTALS OF THE NEWSPAPER BUSINESS IN 1970 AMERICAN NEWSPAPERS PENETRATED 98 OF US HOUSEHOLDS TODAY HOUSEHOLD PENETRATION IS BELOW 70 NATIONALLY AND FAR LESS THAN THAT IN MANY METROPOLITAN AREAS THOUGH THE ADULT POPULATION HAS GROWN NEWSPAPERS' AVERAGE WEEKDAY CIRCULATION BETWEEN 1970 AND 1990 DIDN'T BUDGE RANGING BETWEEN 62 MILLION AND 63 MILLION COPIES SOLD AT KNIGHTRIDDER THE NEW ELECTRONIC PUBLISHING PROJECT IS THE BRAINCHILD OF ROGER FIDLER A COMPANY VETERAN WHO HAD WORKED ON VIEWTRON TO BUILD INDUSTRY SUPPORT MR FIDLER HAS INVITED COMPETITORS TO HIS BOULDER LAB WHERE HE DEMONSTRATES THE TABLET'S SOFTWARE ON A MACINTOSH COMPUTER ONE CURRENT VERSION ENVISIONED BY MR FIDLER MIMICS A NEWSPAPER'S FRONT PAGE AFTER THE TABLET RECEIVES DATA BY PHONE LINE OR SATELLITE READERS CAN TOUCH A FRONT PAGE SUMMARY WITH A STYLUS PEN TO CALL UP LONGER VERSIONS OF A STORY OR RELATED STORIES AND GRAPHICS TOUCHING AN AD FOR A RESTAURANT CAN MAKE A VIDEO WITH SOUND APPEAR A SORT OF TALKING MENU IF AN INDUSTRY STANDARD IS ACCEPTED USERS COULD READ THE LOCAL PAPER FROM THE TABLET NO MATTER WHAT CITY THEY WERE IN IT MAY TAKE UNTIL THE END OF THE DECADE TO PACKAGE A WHOLE NEWSPAPER FOR THE TABLET THOUGH A LIMITED VERSION COULD APPEAR BEFORE THEN LAPTOP COMPUTERS HAVE BEEN THE DRIVING FORCE IN RECENT YEARS BUT WE SEE THE TABLET AS A COMPLETELY NEW CLASS OF COMPUTER THAT BECOMES MORE LIKE AN APPLIANCE SAYS MR FIDLER WHILE HE WON'T SAY WHAT KNIGHTRIDDER IS SPENDING ON THE LAB MR FIDLER ADDS OUR BUDGET ISN'T ANYWHERE AS BIG AS IT WAS FOR VIEWTRON WE'VE LEARNED WE DON'T HAVE TO DEVELOP EVERYTHING BY OURSELVES KNIGHTRIDDER'S SAN JOSE MERCURY NEWS IS MOVING INTO ELECTRONICS IN SMALLER STEPS WITH A PREVIEW TODAY OF MERCURY CENTER BOB INGLE EXECUTIVE EDITOR OF THE SAN JOSE MERCURY NEWS SAYS PC OWNERS WITH MODEMS WILL BE ABLE TO RETRIEVE THE CONTENTS OF THE DAY'S PAPER AS WELL AS ARTICLES FROM AS FAR BACK AS 1985 ELECTRONIC BULLETIN BOARDS WILL ALLOW READERS TO CONVERSE ELECTRONICALLY WITH REPORTERS AND EDITORS SOON READERS RESPONDING TO CODES AT THE ENDS OF ARTICLES WILL BE ABLE TO REQUEST RELATED STORIES ONLINE AS WELL AS FAX COPIES OF NEWS RELEASES AND PUBLIC DOCUMENTS REFERRED TO IN THE PAPER EVENTUALLY USERS WILL BE CHARGED A MODEST MONTHLY FEE FOR AS MUCH AS FIVE HOURS OF USE AND AN HOURLY RATE THEREAFTER MERC CENTER IS NOT AN ISOLATED ELECTRONIC PRODUCT SAYS CHRIS JENNEWEIN ITS GENERAL MANAGER IT'S AN EXTENSION OF THE PAPER WHERE READERS CAN GO FOR MORE INFORMATION TO ASK QUESTIONS TRADE COMMENTS TRANSMITTING NEWS ELECTRONICALLY IS STILL A TOP PRIORITY BUT SOME PUBLISHERS SUCH AS TRIBUNE CO ARE GEARING UP FOR THE DAY WHEN THEY ARE A ONESTOP MULTIMEDIA PROVIDER OF NEWS INFORMATION AND ENTERTAINMENT TRIBUNE LAST YEAR MADE A MINORITY INVESTMENT IN AMERICA ONLINE INC A NATIONAL COMPUTER NETWORK THAT WILL CARRY THE ELECTRONIC VERSION OF THE CHICAGO TRIBUNE IT IS ALSO CONSIDERING STARTING A HOME SHOPPING CHANNEL BUILDING ON ITS RECENTLY LAUNCHED CHICAGOLAND CABLE A 24HOUR LOCAL CABLE NEWS NETWORK DESPITE ALL THE PROJECTS IN THE WORKS THERE IS WARINESS IN SOME QUARTERS TIMES MIRROR CO WHICH SHUT DOWN AN ELECTRONIC NEWSPAPER SERVICE CALLED GATEWAY IN THE MID1980S IS TAKING A MEASURED APPROACH SAYS DOUG FOX A VICE PRESIDENT ALL DIVISIONS OF TIMES MIRROR WHICH PUBLISHES THE LOS ANGELES TIMES AND NEWSDAY ARE CONSIDERING HOW THEY CAN CONTRIBUTE TO MULTIMEDIA AND ELECTRONICPUBLISHING PROJECTS BUT AN INHOUSE COMMITTEE HAS YET TO MAKE A RECOMMENDATION MR FOX SAYS A MAJOR CHALLENGE WILL BE TRAINING JOURNALISTS TO HANDLE MULTIMEDIA NEWS JOURNALISTS WILL HAVE TO BE ABLE TO HANDLE AUDIO VIDEO AND TEXT HE SAYS THERE SHOULD BE A NEW FORM OF TRAINING 9304260082 930426 MCDONNELL GETS TWA TO AGREE TO LEASE 5 JETS TENTATIVE PACT IS FIRST TIME US AIRLINER ASSEMBLED OVERSEAS IS PLACED HERE BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL FIVE COMMERCIAL JETLINERS ASSEMBLED FOR MCDONNELL DOUGLAS CORP IN CHINA HAVE BEEN PLACED WITH A US AIRLINE THE TENTATIVE AGREEMENT BY TRANS WORLD AIRLINES TO LEASE THE FIVE NEW NARROWBODY MD83 JETLINERS MARKS THE FIRST TIME THAT ANY US COMMERCIAL JET HAS BEEN ASSEMBLED OFFSHORE AND THEN PLACED WITH A WESTERN CARRIER OFFSHORE PRODUCTION OF US AEROSPACE PARTS AND JETS HAS LONG BEEN A SERIOUS CONCERN FOR US LABOR UNIONS BUT IT COULD BE A WHILE BEFORE THE TWA TRANSACTION BECOMES COMMONPLACE MCDONNELL DOUGLAS'S SHANGHAI AVIATION INDUSTRIAL CORP COOPERATIVE VENTURE WAS SUPPOSED TO PRODUCE JETS AT COSTS 10 TO 20 LOWER THAN USBUILT COUNTERPARTS THUS GIVING THE COMPANY A MARKET EDGE BUT WITH PRICES PLUMMETING IN TODAY'S SATURATED WORLD AIRCRAFT MARKET EVEN AIRLINES INSIDE CHINA ARE FINDING THAT THE LIST PRICE OF THE SHANGHAIASSEMBLED JETS IS HIGHER THAN SIMILAR PLANES AVAILABLE ELSEWHERE CHINESE AND US INDUSTRY OFFICIALS SAY SPOKESMEN FOR TWA AND FOR MCDONNELL DOUGLAS'S COMMERCIAL AIRCRAFT UNIT IN LONG BEACH CALIF CONFIRMED THE TENTATIVE LEASE ARRANGEMENT WHICH MCDONNELL DOUGLAS HAS AGREED TO DO ON FAVORABLE FINANCIAL TERMS THAT RECOGNIZE THE CURRENTLY DEPRESSED WORLD AIRCRAFT MARKET TWA WHICH IS IN BANKRUPTCY REORGANIZATION SAID THE JETLINERS ARE PART OF A TOTAL POTENTIAL LEASE OF AS MANY AS SIX OF THE 160SEAT MD83 JETS AND 12 DC950 NARROWBODY AIRCRAFT THE VALUE OF THE AIRCRAFT IF SOLD WOULD EXCEED 300 MILLION UNDER A 1985 AGREEMENT JETS PRODUCED AT SHANGHAI HAVE BEEN ASSEMBLED FROM KITS SUPPLIED BY THE US MANUFACTURER ONLY FIVE OF 35 JETS INCLUDED UNDER INITIAL CONTRACTS HAD BEEN SLATED FOR EXPORT NEARLY ALL OF THE REMAINING 30 JETS ALREADY HAVE BEEN DELIVERED TO RAPIDLY EXPANDING CHINESE CARRIERS UNDER A RECENT AGREEMENT THE SHANGHAI PLANT IS EXPECTED TO PRODUCE DOZENS MORE TWINENGINE JETS CALLED TRUNKLINERS THAT INCLUDE SPECIAL LANDING GEAR FOR USE ON MINIMALLY DEVELOPED CHINESE RUNWAYS MCDONNELL DOUGLAS HAD SAID IN THE PAST THAT IT MIGHT PRODUCE SMALLER 100SEAT MD95 AIRLINERS IN CHINA FOR EXPORT BUT IN RECENT MONTHS THE COMPANY HAS SOFTENED ITS COMMITMENT TO DO SO OFFICIALS OF ST LOUISBASED MCDONNELL DOUGLAS WHICH IS STRUGGLING TO MAINTAIN ITS SHARE OF THE WORLD JET MARKET HAVE ARGUED THAT CHINESE PRODUCTION WILL PROVIDE EMPLOYMENT FOR ITS US ENGINEERING AND PARTS MAKING WORK FORCE BY ATTRACTING MORE TOTAL SALES BUT THE CHINESE VENTURE HAS TROUBLED SOME MEMBERS OF CONGRESS AS WELL AS UNION AND INDUSTRY OFFICIALS ONE SENIOR MANAGER OF A MAJOR US AIRLINE OPERATING MCDONNELL DOUGLAS JETLINERS SAID LAST YEAR THAT HE WOULD BE RELUCTANT TO OPERATE ANY AIRCRAFT ASSEMBLED IN CHINA PARTLY BECAUSE OF QUESTIONS HE HAS ABOUT QUALITY OFFICIALS OF THE FEDERAL AVIATION ADMINISTRATION HAVE SAID THEY HAVE NO QUALMS ABOUT THE QUALITY OF THE JETS JOHN PETERPAUL A SENIOR OFFICIAL OF THE INTERNATIONAL ASSOCIATION OF MACHINISTS & AEROSPACE WORKERS UNION SAID THE PLACEMENT OF THE CHINAASSEMBLED JETS AT TWA IS AWKWARD FOR US BECAUSE UNIONS OPPOSE OFFSHORE PRODUCTION BUT RECOGNIZE THAT TWA NEEDS ALL THE LOWCOST NEW JETS IT CAN GET IF IT IS TO SURVIVE NEITHER BOEING CO NOR EUROPE'S AIRBUS INDUSTRIE ASSEMBLE JETS IN DEVELOPING COUNTRIES BOTH DO BUY LARGE QUANTITIES OF PARTS FROM CHINA AND OTHER DEVELOPING COUNTRIES MAINLY AS AN INDUCEMENT TO SELLING AIRPLANES TO THOSE NATIONS SAVINGS ERASED AND COMMENTS BY CHINESE OFFICIALS SUGGEST THAT FOR NOW AT LEAST ANY HOPEDFOR SAVINGS IN THE MCDONNELL DOUGLAS CHINA VENTURE HAVE BEEN SUBSTANTIALLY ERASED LI YUANMING CONTRACT MANAGER FOR CHINA AVIATION SUPPLY CORP WHICH ARRANGES ALL CHINESE JET ACQUISITIONS ACKNOWLEDGED RECENTLY THAT THERE IS A PRICE DIFFERENCE IN FAVOR OF JETS BUILT OUTSIDE OF CHINA COMPARED WITH THE LIST PRICE OF THE SHANGHAIASSEMBLED AIRLINERS ANOTHER CHINESE OFFICIAL SAID HE HAS OCCASIONALLY FOUND THE SHANGHAI PRICE HIGHER THAN IF WE BUY DIRECTLY FROM MCDONNELL DOUGLAS IN LONG BEACH MR LI SAID PART OF THE PROBLEM FOR SHANGHAI AVIATION IS THAT ALL OF ITS COST COMPONENTS INCLUDING LABOR HAVE REMAINED STEADY WHILE AIRCRAFT PRICES WORLDWIDE HAVE DROPPED HE SAID CHINESE CARRIERS ALSO NEED MORE AIRCRAFT THAN THE SHANGHAI VENTURE IS SCHEDULED TO PRODUCE MR LI CONFIRMED INDUSTRY REPORTS THAT CHINESE AIRLINES RECENTLY AGREED TO ACCEPT FIVE NEW MD82 JETS BUILT IN THE US THROUGH A GENERAL ELECTRIC CO LEASING UNIT AT A SUBSTANTIAL DISCOUNT TO LIST PRICE AN INDUSTRY OFFICIAL FAMILIAR WITH THE TRANSACTION SAID THE POLARIS JETS WERE ACQUIRED WHEN THE LEASING COMPANY TOOK OVER ORDERS HELD BY USAIR GROUP HE SAID THE COST TO THE CHINESE OF ABOUT 23 MILLION EACH COMPARES WITH A SUGGESTED LIST PRICE OF ABOUT 28 MILLION EACH FOR JETS BUILT IN SHANGHAI OR LONG BEACH 9304260081 930426 HUGHES CANCELS PARIS AIR SHOW DISPLAY AFTER CIA WARNS OF FRENCH SPY SCHEME BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES HUGHES AIRCRAFT CO SUSPENDED PLANS TO DISPLAY ITS WARES AT THE PARIS AIR SHOW IN JUNE AFTER THE DEFENSE COMPANY AND OTHER US FIRMS WERE TOLD BY THE CENTRAL INTELLIGENCE AGENCY THAT THEY APPEAR TO HAVE BEEN TARGETED BY THE FRENCH FOR INDUSTRIAL ESPIONAGE HUGHES CHAIRMAN C MICHAEL ARMSTRONG SAID IN AN INTERVIEW THAT HE WAS BRIEFED 10 DAYS AGO BY THE AGENCY HE WAS ADVISED THAT FRENCH DOCUMENTS SECURED BY THE CIA SUGGEST THAT THE HUGHES UNIT OF GENERAL MOTORS CORP WAS AMONG 49 US AEROSPACE AND DEFENSE COMPANIES TARGETED BY AN ELABORATE FRENCH GOVERNMENT SPYING SCHEME MR ARMSTRONG SAID HE WAS TOLD THAT THE DOCUMENTS WHICH ALSO TARGET BOEING CO MCDONNELL DOUGLAS CORP GENERAL DYNAMICS CORP LOCKHEED CORP AND DOZENS OF OTHER BIG MANUFACTURERS APPEAR TO BE AUTHENTIC HOWEVER HE SAID THE DOCUMENTS STILL MUST BE VERIFIED THE 10DAY BIANNUAL SHOW ONE OF THE WORLD'S LARGEST WEAPONS AND AIRCRAFT EXPOSITIONS BEGINS JUNE 10 WE'RE NOT GOING TO GO UNTIL THE AGENCY CLARIFIES THE REPORT SAID MR ARMSTRONG HE ADDED HOWEVER THAT HUGHES HAD PLANNED ONLY A MINIMAL PRESENCE AT THE SHOW AND THAT HE MIGHT NOT HAVE ELECTED TO BACK OUT IF THE COMPANY HAD LARGESCALE PLANS TO PARTICIPATE OR HOPES OF SECURING SIGNIFICANT NEW BUSINESS THERE MR ARMSTRONG ALSO CONFIRMED HE HAD ALERTED CHAIRMEN OF OTHER LARGE US AEROSPACE COMPANIES INCLUDING NORTHROP CORP'S KENT KRESA LOCKHEED'S DANIEL TELLEP AND MCDONNELL DOUGLAS'S JOHN MCDONNELL OF HIS DECISION DURING AN INDUSTRYASSOCIATION MEETING IN WASHINGTON EARLIER THIS MONTH THE MCDONNELL DOUGLAS SPOKESMAN ACKNOWLEDGED HOWEVER THAT SENIOR OFFICIALS OF HIS COMPANY WERE ALSO BRIEFED BY THE CIA ABOUT THE DOCUMENTS THE FRENCH DOCUMENTS WHICH WERE THE SUBJECT OF ARTICLES IN THE KNIGHTRIDDER INC NEWSPAPERS AND OTHER PUBLICATIONS MORE THAN A WEEK AGO REPORTEDLY WERE PRODUCED IN PART BY THE FRENCH DEPARTMENT OF SCIENCE COMMERCE AND TECHNOLOGY THEY ARE SAID TO INCLUDE A 21PAGE ASSIGNMENT SHEET THAT LAYS OUT PLANS TO SECURE ENGINEERING AND TESTING DATA ALONG WITH SALES STRATEGIES FOR BOTH COMMERCIAL JETS AND MILITARY PRODUCTS MR ARMSTRONG SAID THE FACTS AS REPORTED BY THE MEDIA MATCH THOSE LAID OUT IN HIS CIA BRIEFING IN PARIS A FRENCH DEFENSE MINISTRY OFFICIAL DIDN'T HAVE ANY COMMENT US COMPANIES HAVE COMPLAINED FOR YEARS ABOUT ESPIONAGE BY THE FRENCH GOVERNMENT WHICH BACKS NUMEROUS AEROSPACE AND DEFENSE CONCERNS EXPANDING INDUSTRIAL ESPIONAGE BY OTHER WESTERN COUNTRIES ALSO HAS BEEN A SOURCE OF INCREASING CONCERN FOR US CORPORATESECURITY MANAGERS IN HIS RECENT CONFIRMATION HEARINGS CIA DIRECTOR R JAMES WOOLSEY INDICATED THAT THE INTELIGENCE AGENCY WILL TAKE ANOTHER LOOK AT THE POSSIBILITY OF SHARING ECONOMIC INTELLIGENCE WITH AMERICAN BUSINESSES BUT DIDN'T SAY WHETHER HE FAVORED SUCH A POLICY THE PREVIOUS DIRECTOR ROBERT GATES ORDERED A REVIEW OF THE MATTER BUT DECIDED AGAINST SUCH SHARING OF INTELLIGENCE CIA SPOKESMEN COULDN'T BE REACHED FOR COMMENT YESTERDAY MR ARMSTRONG STRESSED THAT EVEN BEFORE THE DOCUMENTS EMERGED HE HAD CONSIDERED CANCELING THE COMPANY'S LIMITED PLANS TO ATTEND THE SHOW AS A WAY TO CUT EXPENSES ES BROWNING IN PARIS CONTRIBUTED TO THIS ARTICLE 9304260080 930426 ECONOMY VEHICLES MADE IN US HAVE IMPROVED SALES CAR LIGHTTRUCK RESULTS FOR MIDAPRIL PERIOD ROSE ON GM REBOUND BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT SALES OF DOMESTICALLY PRODUCED CARS AND LIGHT TRUCKS IMPROVED DURING MIDAPRIL BUILDING ON A SPRING REBOUND BY GENERAL MOTORS CORP AND CONTINUED STRONG SALES AT CHRYSLER CORP AND FORD MOTOR CO GM WHICH SAW ITS MARKET SHARE SLIDE DURING MOST OF THE FIRST QUARTER APPEARED TO REGAIN SOME MOMENTUM IN THE LATEST PERIOD BY AGGRESSIVELY PUSHING VALUEPRICING CAMPAIGNS ON SEVERAL OF ITS CAR AND TRUCK LINES SALES OF GM'S CHEVROLET CAVALIER THE COMPANY'S BESTSELLING CAR JUMPED 484 IN THE APRIL 1120 PERIOD FROM A YEAR EARLIER AS CONSUMERS RESPONDED TO STEPPED UP ADVERTISING OF VALUE PRICES AS LOW AS 7670 FOR A TWODOOR CAVALIER GM HAS BEEN PUSHING IT AND I THINK IT IS STARTING TO COME TOGETHER A LITTLE BETTER FOR THEM SAID ED BARLOW OWNER OF BARLOW CHEVROLET IN DELRAN NJ GM'S TOTAL DOMESTIC CAR AND TRUCK SALES IN THE MIDAPRIL PERIOD ROSE 21 FROM A YEAR EARLIER SLIGHTLY OUTPACING THE 195 RISE IN ALL DOMESTIC VEHICLE SALES DURING THE PERIOD IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE GM CLOSED AT 4050 UP 1875 THEY'VE HAD SUCCESS WITH THE VALUE PROGRAMS IT HAS SURPRISED PEOPLE SAID WERTHEIM SCHRODER & CO ANALYST JOHN CASESA OVERALL SALES OF USBUILT LIGHT VEHICLES IN THE MIDAPRIL PERIOD REACHED A SEASONALLY ADJUSTED ANNUAL RATE OF 116 MILLION VEHICLES RISING MODESTLY FROM A RATE OF 109 MILLION VEHICLES FOR THE PREVIOUS 30DAY PERIOD WHILE JUMPING SHARPLY FROM A YEAREARLIER PACE OF 97 MILLION VEHICLES LIGHT TRUCK SALES CONTINUED TO REPRESENT MUCH OF THE MARKET'S STRENGTH REACHING A SEASONALLY ADJUSTED SELLING RATE OF FIVE MILLION VEHICLES IN MIDAPRIL 28 BETTER THAN A YEAREARLIER RATE OF 39 MILLION VEHICLES MEANWHILE PASSENGER CARS REACHED AN ANNUAL SELLING RATE OF 66 MILLION VEHICLES A 13 IMPROVEMENT FROM A YEARAGO RATE OF 58 MILLION VEHICLES SPRING HAS FINALLY SPRUNG IN DEALER SHOWROOMS WE EXPECT THE CURRENT SALES PACE TO CONTINUE TOM WEBB CHIEF ECONOMIST FOR THE NATIONAL AUTOMOBILE DEALERS ASSOCIATION SAID IN A STATEMENT GM SOLD 84631 DOMESTICALLY BUILT CARS IN THE MIDAPRIL PERIOD A 155 IMPROVEMENT OVER YEAREARLIER SALES IT'S INDICATIVE OF WHAT WE HAVE BEEN INDICATING FOR A PERIOD OF TIME WE CONSCIOUSLY BACKED AWAY FROM FLEET SALES AND WE HAD TO MAKE THAT UP WITH GREATER RETAIL SALES AND THAT HAS HAPPENED SAID J MICHAEL LOSH GM'S GROUP VICE PRESIDENT FOR NORTH AMERICAN SALES MR LOSH SAID THE EMPHASIS ON VALUE WHICH USUALLY MEANS LOWER PRICES HELPED TO BOOST GM DOMESTIC TRUCK SALES BY 314 IN MIDAPRIL TO 51381 LIGHT TRUCKS FROM 39109 TRUCKS IN THE YEAREARLIER PERIOD GM'S ARCHRIVAL FORD SAW SMALLER SALES GAINS IN THE LATEST PERIOD FORD SOLD 46012 DOMESTICALLY BUILT CARS IN MIDAPRIL A 152 IMPROVEMENT FROM SALES OF 39941 CARS A YEAR EARLIER BUT ITS LIGHTTRUCK PERFORMANCE TRAILED THE INDUSTRY AS FORD SOLD 42620 DOMESTIC TRUCKS VS 39578 A YEAR EARLIER A MODEST 77 GAIN DURING WHAT HAS BEEN A HOT YEAR FOR TRUCKS ANALYSTS SAID FORD'S RESULTS REFLECT STRONGER RESULTS A YEAR EARLIER AND PRODUCTION CAPACITY CONSTRAINTS ON SOME MODELS IF YOU ARE BUILDING ALL OF THESE TAURUSES AND SELLING ALL OF THEM IT GETS HARDER AND HARDER TO SQUEEZE OUT ANY MORE SAID FURMAN SELZ INC ANALYST MARYANN KELLER THEY WILL BUMP UP AGAINST THAT REALITY FAIRLY SOON IN COMPOSITE TRADING FRIDAY ON THE BIG BOARD FORD CLOSED AT 52875 UP 875 CENTS CHRYSLER WHICH REPORTS ONLY MONTHEND SALES HAD A 478 INCREASE IN USBUILT CAR SALES AND A 326 INCREASE IN DOMESTIC TRUCK SALES ACCORDING TO ESTIMATES FROM WARD'S AUTOMOTIVE REPORTS A TRADE PUBLICATION IN COMPOSITE TRADING FRIDAY ON THE BIG BOARD CHRYSLER SHARES CLOSED AT 39625 UP 75 CENTS MEANWHILE SEVERAL JAPANESE AUTO MAKERS SAW INCREASES IN SALES OF THEIR USMADE VEHICLES TOYOTA MOTOR CO SOLD 8179 USBUILT CARS IN MIDAPRIL UP FROM 7341 CARS A YEAR EARLIER FOR AN 114 IMPROVEMENT THAT TRAILED THE INDUSTRY BUT HELPED THE AUTO MAKER RECOVER FROM A 64 DROP IN DOMESTIC CAR SALES IN MARCH IN OVERTHECOUNTER TRADING FRIDAY TOYOTA AMERICAN DEPOSITARY RECEIPTS CLOSED AT 29375 UNCHANGED LIKEWISE NISSAN MOTOR CO SOLD 5194 USBUILT CARS IN MIDAPRIL UP FROM 2628 CARS A YEAR EARLIER A 976 INCREASE NISSAN ALSO SOLD 3656 DOMESTICALLY BUILT TRUCKS IN THE PERIOD UP FROM 3314 TRUCKS A YEAR EARLER A 103 IMPROVEMENT AMONG THE JAPANESE AUTO MAKERS THAT REMAINED IN A SALES SLUMP WAS HONDA MOTOR CO WHICH SOLD 9893 USBUILT CARS IN MIDAPRIL DOWN 147 FROM SALES OF 11601 CARS A YEAR EARLIER IN FRIDAY'S BIG BOARD COMPOSITE TRADING HONDA ADRS CLOSED AT 25125 DOWN 375 CENTS 9304260079 930426 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT ASTRO TANKERS LTD INITIAL FIVE MILLION COMMON SHARES VIA LEHMAN BROTHERS BORG WARNER SECURITY CORP 150 MILLION OF SENIOR SUBORDINATED NOTES VIA MERRILL LYNCH & CO COPLEY PHARMACEUTICALS INC 1825000 COMMON SHARES VIA BEAR STEARNS & CO CTL CREDIT INC INITIAL THREE MILLION COMMON SHARES VIA MONTGOMERY SECURITIES ELECTRONIC RETAILING SYSTEMS INTL INC 1917145 COMMON SHARES VIA MONTGOMERY ESSEX GROUP INC 200 MILLION OF SENIOR NOTES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP GEON CO INITIAL 13 MILLION COMMON SHARES VIA GOLDMAN SACHS & CO HARMON INDUSTRIES INC ONE MILLION COMMON SHARES VIA PIPER JAFFRAY INACOM CORP 5522190 COMMON SHARES VIA LEHMAN BROTHERS INTERLINQ SOFTWARE CORP INITIAL 25 MILLION COMMON SHARES VIA PIPER JAFFRAY JABIL CIRCUIT INC INITIAL 3375 COMMON SHARES VIA BEAR STEARNS JOHN B SANFILIPPO & SON INC 24 MILLION COMMON SHARES VIA DONALDSON LUFKIN & JENRETTE MGI PROPERTIES 25 MILLION COMMON SHARES VIA OPPENHEIMER MIDLANTIC CORP FIVE MILLION COMMON SHARES VIA LEHMAN BROTHERS MOHAWK INDUSTRIES INC TWO MILLION COMMON SHARES VIA FIRST BOSTON CORP NIAGARA MOHAWK POWER CORP FOUR MILLION COMMON SHARES VIA MERRILL LYNCH OFFSHORE PIPELINES FOUR MILLION COMMON SHARES VIA LEHMAN BROTHERS RECOGNITION INTERNATIONAL INC SECONDARY OFFERING OF TWO MILLION COMMON SHARES VIA BEAR STEARNS ROYAL CARIBBEAN CRUISES LTD INITIAL 10 MILLION COMMON SHARES INCREASED FROM 79 MILLION TODAY'S MAN INC TWO MILLION COMMON SHARES VIA ALEX BROWN INC USAIR GROUP INC 10 MILLION COMMON SHARES VIA FIRST BOSTON WORLD COLOR PRESS INC 150 MILLION OF SENIOR NOTES VIA DONALDSON LUFKIN & JENRETTE PENNSYLVANIA HIGHER EDUCATION FACILITIES AUTHORITY 777 MILLION OF REVENUE BONDS VIA COMPETITIVE BID WEST JEFFERSON INDUSTRIAL DEVELOPMENT BOARD ALA 873 MILLION OF POLLUTION CONTROL REVENUE REFUNDING BONDS VIA COMPETITIVE BID NEW YORK STATE 850 MILLION OF 1993 TAX AND REVENUE ANTICIPATION NOTES VIA COMPETITIVE BID DALLASFORT WORTH REGIONAL AIRPORT TEXAS 204 MILLION OF REFUNDING BONDS VIA A BEAR STEARNS GROUP DISTRICT OF COLUMBIA 250 MILLION OF GENERAL OBLIGATION REFUNDING BONDS VIA A LEHMAN BROTHERS GROUP FLORIDA DEPARTMENT OF TRANSPORTATION 525 MILLION OF SERIES 1993A TURNPIKE REVENUE REFUNDING BONDS VIA A MERRILL LYNCH GROUP MISSISSIPPI HOSPITAL EQUIPMENT & FACILITIES AUTHORITY 100 MILLION OF HOSPITAL REVENUE BONDS VIA A GOLDMAN SACHS GROUP NEW YORK STATE DORMITORY AUTHORITY 700 MILLION TO 800 MILLION OF REFUNDING BONDS FOR THE STATE UNIVERSITY OF NEW YORK VIA A MERRILL LYNCH GROUP VIRGINIA EDUCATION LOAN AUTHORITY 180 MILLION OF REFUNDING BONDS VIA A SMITH BARNEY HARRIS UPHAM & CO INC GROUP 9304260078 930426 VENEZUELAN CONGRESS TO DEBATE PROPOSAL FOR OIL EXPLOITATION CARACAS VENEZUELA THE VENEZUELAN CONGRESS IS EXPECTED TO START DEBATE THIS WEEK ON A 17 BILLION PROJECT TO EXPLOIT VENEZUELA'S HEAVY CRUDES THAT ITS PROMOTERS SAY WILL BOOST THE COUNTRY'S GROSS DOMESTIC PRODUCT 1 DURING THE THREE YEARS OF CONSTRUCTION BESIDES THIS AND OTHER PROPOSED VENTURES IN HEAVY CRUDES THE STATE OIL COMPANY IS EYEING VENTURES TO DEVELOP THE COUNTRY'S SMALLER RESERVES OF LIGHT AND MEDIUM CRUDES JUAN PULGAR MANAGING DIRECTOR OF THE COMPANY'S STRATEGIC ASSOCIATIONS UNIT SAID AT A NEWS CONFERENCE THE OIL COMPANY PETROLEOS DE VENEZUELA HOPES TO FORM THREE VENTURES IN THE NEXT 10 YEARS MR PULGAR SAID TO DATE 11 INTERNATIONAL OIL COMPANIES HAVE SIGNED LETTERS OF INTENT TO HELP EXPLOIT THE ESTIMATED 270 BILLION BARRELS OF HEAVY CRUDES IN VENEZUELA'S ORINOCO BELT REGION RECOVERABLE USING CURRENT TECHNOLOGY THE VENTURE NOW UNDER CONSIDERATION BETWEEN CONOCO INC OF THE US AND MARAVEN A PRODUCTION SUBSIDIARY OF PETROLEOS DE VENEZUELA HAS A PROJECTED RETURN OF 21 BILLION OVER THE 20 YEARS OF THE PROJECT SAID HILDEBRANDO MARTELL OF THE STRATEGIC ASSOCIATIONS UNIT VENEZUELA WOULD GET 164 BILLION OF THE PROFITS THROUGH ITS 499 SHARE IN THE PROJECT AN INCOME TAX OF 30 ON EARNINGS AND A ROYALTY TAX OF 166 ON PRODUCTION MR MARTELL SAID IN ADDITION THE PROJECT IS EXPECTED TO CREATE AS MANY AS 25000 JOBS AND BUY AS MUCH AS 435 MILLION OF LOCAL GOODS AND SERVICES HE SAID CONOCO HAS AN EQUAL SHARE OF 499 THE REMAINING 02 IS RESERVED FOR OTHER PARTNERS OR SHARES TO BE SOLD ON THE CARACAS STOCK EXCHANGE MR MARTELL SAID THE FRENCH OIL COMPANY TOTAL CIE FRANCAISE DES PETROLES IS INTERESTED IN PARTICIPATING IN THE PROJECT MARAVEN VICE PRESIDENT LUIS GUISTI SAID RECENTLY THE MARAVENCONOCO PROJECT PLANS TO PUMP 120000 BARRELS DAILY OF HEAVY CRUDES FROM THE ORINOCO BELT AND REFINE THEM TO PRODUCE 102000 BARRELS THE REFINED CRUDES WILL BE SENT TO CONOCO'S US REFINERIES THE PRESIDENT AND HIS CABINET APPROVED THE PLAN IN MARCH THE CONGRESS WHICH HAS THE FINAL SAY IS EXPECTED TO DECIDE BY AUGUST IF APPROVED IT WOULD BE VENEZUELA'S FIRST JOINT VENTURE TO EXPLOIT ITS MASSIVE RESERVES OF HEAVY CRUDES 9304260077 930426 BUSINESS BRIEF ROBERT HALF INTERNATIONAL INC ACCOUNTING SERVICES DEMAND LED TO SHARP RISE IN PROFIT BOOSTED BY STRONG DEMAND FOR ACCOUNTING PERSONNEL SERVICES ROBERT HALF INTERNATIONAL INC SAID ITS FIRSTQUARTER EARNINGS INCREASED SHARPLY THE COMPANY WHICH PROVIDES TEMPORARY AND PERMANENT EMPLOYEE PLACEMENT SERVICES SAID NET INCOME IN THE QUARTER JUMPED TO 24 MILLION OR 20 CENTS A SHARE FROM 831000 OR SEVEN CENTS A SHARE A YEAR EARLIER REVENUE CLIMBED TO 696 MILLION FROM 527 MILLION THE MENLO PARK CALIF CONCERN SAID THE FIRST QUARTER ALSO BENEFITED FROM CONTINUED CONTAINMENT OF SELLING GENERAL AND ADMINISTRATIVE COSTS AS WELL AS LOWER INTEREST EXPENSES 9304260076 930426 MARKETING & MEDIA ADVERTISING VANITY FAIR LOOKS FOR COMEBACK IN ITS NEW LIFE AFTER TINA BROWN BY PATRICK M REILLY VANITY FAIR IS FINDING IT TOUGH GOING IN THE POSTTINA BROWN ERA LAST FALL MS BROWN LEFT THE MAGAZINE SHE HAD BUILT INTO CONDE NAST'S HOTTEST PROPERTY TO HEAD THE NEW YORKER AT THE TIME ONE OF THE WEAKEST PROPERTIES OWNED BY CONDE NAST CHAIRMAN SI NEWHOUSE JR WHILE THE NEW YORKER HAS SINCE GRABBED THE BUZZ AND THE ADVERTISERS SOME INDUSTRY EXECUTIVES HAVE PUT VANITY FAIR ON THE ENDANGERED SPECIES LIST AND MS BROWN'S SUCCESSOR FORMER SPY COEDITOR E GRAYDON CARTER IS UNDER PRESSURE TO PROVE THE DOUBTERS WRONG FOR THE FIRST QUARTER AD PAGES AT VANITY FAIR ARE DOWN 15 FROM 1992 LEVELS THE LARGEST DROP OF ANY CONDE NAST MAGAZINE IN THE PERIOD AND PUBLISHER RON GALOTTI SAYS AD PAGES WILL STAY OFF BY 15 THROUGH THE FIRST HALF BY CONTRAST AT THE NEW YORKER WHERE MS BROWN HAS ADDED SASS AND PHOTOGRAPHS TO THE HISTORICALLY MORE CONSERVATIVE AND LITERARY WEEKLY AD PAGES IN THE FIRST QUARTER SURGED AHEAD 16 MR GALOTTI SAYS HE EXPECTED ADVERTISER FALLOUT YOU DON'T MAKE AN EDITORIAL CHANGE AT THE LEVEL OF TINA AND NOT EXPECT THIS THERE IS DEFINITELY A WAITANDSEE ATTITUDE ON PART OF ADVERTISERS IT'S NATURAL FOR THEM TO SIT BACK AND BE CAUTIOUS ABOUT WHERE THEY ARE PLACING THEIR DOLLARS HE SAYS BUT THE LAG IN THE AD COMMUNITY IS JUST THAT A LAG WE COULD MAKE THIS UP IN THE SECOND HALF CONDE NAST EXECUTIVES NOTE THAT WHILE SOME ADVERTISERS HAVE DROPPED OUT VANITY FAIR'S CIRCULATION IS STRONG AND GAINING EACH OF THE SIX ISSUES MR CARTER HAS EDITED HAS SHOWN A SIGNIFICANT GAIN IN CIRCULATION INCLUDING SUBSCRIBERS AND NEWSSTAND BUYERS OVER MS BROWN'S ISSUES OF THE PREVIOUS YEAR VANITY FAIR EXPECTS TO REPORT PAID CIRCULATION OF ABOUT 1120000 FOR THE FIRST HALF AN 11 GAIN OVER LAST YEAR MR NEWHOUSE KNOWN FOR ABRUPTLY FIRING HIS MAGAZINE EDITORS DENIES SPECULATION THAT HE HAS ALREADY LOST CONFIDENCE IN MR CARTER IT WAS IN THE CARDS THAT WE WOULD HAVE SOME KIND OF FALL OUT MR NEWHOUSE SAYS I THINK GRAYDON'S DOING AN EXTRAORDINARY JOB AND IT SHOWS IN THE CIRCULATION FIGURES MR CARTER HASN'T TINKERED MUCH WITH THE MAGAZINE'S SUCCESSFUL FORMULA CELEBRITIES PRINCESS DI FOREIGN SCANDALS AND NAUGHTY US DEBUTANTES MIXED WITH SOME SERIOUS INVESTIGATIVE REPORTING AND COMMENTARY BUT SOME OF HIS MOVES HAVE RAISED QUESTIONS NOTABLY USING TWO DIFFERENT COVERS IN MARCH RANDOMLY SENDING SUBSCRIBERS A COVER FEATURING PRESIDENT CLINTON AND ONE SPORTING ACTRESS ANDIE MCDOWELL MEANT TO GRAB ATTENTION CRITICS SAY THE MOVE JUST CONFUSED READERS AND ADVERTISERS EVEN SOME ADVERTISERS WHO CONTINUE TO BUY SPACE IN THE MAGAZINE SAY IT'S MISSING THAT CERTAIN SOMETHING THAT WAS THERE UNDER MS BROWN THE BUZZ IS A LITTLE BIT OFF VF WE ARE WATCHING IT CAREFULLY SAYS PAULA BROOKS EXECUTIVE VICE PRESIDENT AT MARGEOTES FERTITTA & WEISS WHOSE CLIENTS GODIVA CHOCOLATE AND COLEHAAN SHOES RUN IN VANITY FAIR A GOOD BUZZ IS GAUGED BY SILLY LITTLE THINGS LIKE IF THE MAGAZINE IS STOLEN FROM YOUR MAIL BOX OR IF THEY ARE CARRYING IT AROUND THE GYM RIGHT NOW THEY ARE CARRYING AROUND THE NEW YORKER AT LEAST ONE LONGTIME VANITY FAIR ADVERTISER DESIGNER GIANNI VERSACE PULLED OUT ALTOGETHER AND DEFECTED OVER TO THE NEW YORKER STEVEN FLORIO NEW YORKER PRESIDENT SWEARS THERE WAS NO POACHING INVOLVED WE JUST MET WITH VERSACE AND THEY WERE EXCITED BY THE NEW VISUAL EXCITEMENT IN THE NEW YORKER WE TALKED JUST ABOUT THE NEW YORKER HE SAYS VANITY FAIR'S MR GALOTTI SAYS HE EXPECTS VERSACE TO RETURN BY THE END OF THE YEAR VERSACE COULDN'T BE REACHED FOR COMMENT AT ADRIENNE VITTADINI INC RICHARD CATALANO PRESIDENT AND CHIEF EXECUTIVE DECIDED THIS YEAR TO DROP VANITY FAIR AND SOME OTHER MAGAZINES BUT REMAIN IN HARPER'S BAZAAR AND VOGUE HE SAYS IT WAS SIMPLY A STRATEGIC SHIFT NOT A REFLECTION ON THE MAGAZINE STILL VANITY FAIR DIDN'T MAKE THE CUT IT ALWAYS HAD IN THE PAST I STILL THINK THE MAGAZINE IS TERRIFIC BUT IT CAME DOWN TO AN ALLOCATION OF DOLLARS MR CATALANO SAYS ANOTHER DESIGN CONCERN JOAN VASS USA HAD PULLED ITS AD COMMITMENTS RECENTLY MR GALOTTI SAYS HE HAS ASSURANCES THE DESIGNER WILL BE BACK BY THE FALL AMY SOKOLOV A JOAN VASS NEW YORK VICE PRESIDENT SAID THE DESIGNER ONLY WANTED TO DIVERSIFY ITS LIMITED AD BUDGET FOR A WHILE JOAN REALLY LIKES RON GALOTTI MS SOKOLOV SAID THAT'S WHY SHE'S GOING BACK IN MR CARTER FOR HIS PART SAYS HE EXPECTED HEAVY SCRUTINY EARLY IN HIS TENURE AND ISN'T SURPRISED SOME ADVERTISERS PULLED OUT I UNDERSTAND THIS HE SAYS WHEN A MAGAZINE IS THE FAVORITE OF SO MANY PEOPLE IT IS NATURAL THAT SOME MAY WANT TO SEE WHAT DIRECTION IT WILL TAKE BUT I THINK IT'S TIME FOR THEM TO COME BACK MR CARTER MAY HAVE HAD THE TOUGHEST ACT TO FOLLOW IN PUBLISHING BUT HE HAD OTHER HANDICAPS COMING TO THE JOB AS COFOUNDER AND COEDITOR OF THE OFTENVICIOUS HUMOR MONTHLY SPY MR CARTER DIDN'T WIN MUCH GOOD WILL AMONGST THE GLITTERATI THE MEDIA AND OTHER INTELLIGENTSIA THAT ARE THE BREAD AND BUTTER OF VANITY FAIR'S COVERAGE IN HOLLYWOOD AT LEAST VANITY FAIR'S CACHET STILL SEEMS INTACT THE MAGAZINE HAS SECURED ACTRESS MICHELLE PFEIFFER FOR A FUTURE COVER AND SEAN CONNERY PROMOTING HIS FILM RISING SUN APPEARS ON THE JUNE COVER MR CARTER ADMITS IT TOOK HIM SOME TIME TO FIGURE OUT WHAT MAKES A GREAT COVER TINA REALLY HAD IT DOWN MS BROWN TOOK OVER VANITY FAIR IN 1984 A YEAR AFTER CONDE NAST RESURRECTED THE MAGAZINE THAT HAD FOLDED IN 1936 IT PASSED THE 1000 ADPAGE MARK IN 1988 AND BY THE END OF 1992 REACHED 1500 AD PAGES BY MIDYEAR 1992 VANITY FAIR CROSSED THE COVETED MILLION MARK IN CIRCULATION WITH MS BROWN'S HEAVY EDITORIAL BUDGET THE MAGAZINE WAS UNPROFITABLE FOR YEARS BUT MORE RECENTLY IS SAID TO HAVE TURNED A PROFIT MR NEWHOUSE AND MR GALOTTI DECLINED COMMENT ON THE MAGAZINE'S CURRENT PROFITABILITY THOUGH MR GALOTTI SAID WE ARE DOING EXTREMELY WELL WHILE MANY OF MS BROWN'S WRITERS AND EDITORS FOLLOWED HER TO THE NEW YORKER MR CARTER HAS SIGNED UP NEW CONTRIBUTING WRITERS AND EDITORS SUCH AS BACKLASH AUTHOR SUSAN FALUDI BARBARIANS AT THE GATE COAUTHOR BRYAN BURROUGH BOTH FORMER WALL STREET JOURNAL REPORTERS AND EXSPORTS ILLUSTRATED WRITER FRANK DEFORD WHILE GIVING FEW DETAILS HE SAID HE PLANS TO FEATURE MORE SPORTS STORIES CONDE NAST'S MR NEWHOUSE DOESN'T BUY THE THEORY THAT IN MOVING MS BROWN FROM VANITY FAIR TO THE NEW YORKER HE MAY HAVE CRIPPLED ONE OF HIS MAGAZINES TO BOLSTER ANOTHER IN THE FORESEEABLE FUTURE VANITY FAIR WILL REGAIN SOME OF THE GROUND IT'S LOST HE INSISTS THE INFINITI DIVISION OF NISSAN MOTOR CO IS KICKING OFF WHAT'S BEING BILLED AS ITS MOST AGGRESSIVE MEDIA BUY WITH THE FIRST CREATIVE WORK FOR INFINITI FROM CHIAT/DAY VENICE CALIF INFINITI'S NEW SPOKESMAN ACTOR JONATHAN PRYCE MADE HIS DEBUT ON BEHALF OF THE Q45 SEDAN IN A SOCALLED TEASER CAMPAIGN OVER THE WEEKEND DRESSED IN BLACK MR PRYCE CIRCLES A WHITE Q45 ON A VACANT WHITE SET DELIVERING AN UNDERSTATED ENDORSEMENT OF THE CAR AND ITS FEATURES HE EVEN KICKS A TIRE THE FACT IS I CAN'T EXPLAIN A CONCEPT AS BIG AS INFINITI IN WHAT A MINUTE OR LESS HE SAYS IF I COULD YOU'D BE SILLY TO BUY IT THE ADS MARK A SHARP DEPARTURE FROM THAT TAKEN BY INFINITI'S PREVIOUS AGENCY HILL HOLLIDAY CONNORS COSMOPULOS WHOSE LAST CAMPAIGN FOR THE CAR PORTRAYED SEVERAL TYPES OF INFINITI OWNERS NISSAN MOVED THE ACCOUNT TO CHIAT LAST FALL IN A COSTCONTAINMENT MOVE CHIAT'S NEW INFINITI SLOGAN IT'S EVERYTHING THAT'S POSSIBLE IS SET TO APPEAR IN 15 COMMERCIALS FOR THREE INFINITI MODELS THROUGH THE FALL AS WELL AS IN PRINT ADS AND BILLBOARDS SAATCHI & SAATCHI ADVERTISING'S POLITICAL UNIT WORKED ON THE CAMPAIGN OF RUSSIAN PRESIDENT BORIS YELTSIN WHOSE PRESIDENCY AND ECONOMICREFORM POLICIES WERE PUT TO VOTERS IN A NATIONAL REFERENDUM YESTERDAY SAATCHI & SAATCHI GOVERNMENT COMMUNICATIONS WORLDWIDE BASED IN LONDON IS PERHAPS BEST KNOWN IN POLITICAL CIRCLES FOR ITS WORK FOR ENGLAND'S CONSERVATIVE PARTY INCLUDING PRIME MINISTER JOHN MAJOR AND HIS PREDECESSOR MARGARET THATCHER FOR MR YELTSIN SAATCHI SAID IT HELD FOCUS GROUPS IN SIX RUSSIAN CITIES AND MADE RECOMMENDATIONS ABOUT STRATEGY BUT DIDN'T PRODUCE ANY ADVERTISING WE SAID THEY SHOULDN'T ADOPT A GLITZY WESTERNSTYLE CAMPAIGN BECAUSE IT WOULD BACKFIRE SAID STEVE HILTON AN EXECUTIVE WITH THE SAATCHI POLITICAL GROUP ONE PIECE OF ADVICE MR HILTON SAID WAS TO HAVE MR YELTSIN APPEAR IN A TELEVISION SHOW ABOUT HIMSELF AND HIS FAMILY ANOTHER WAS TO HAVE CELEBRITIES ENCOURAGE PEOPLE TO VOTE IN TV SPOTS THE YELTSIN CAMPAIGN APPEARS TO HAVE FOLLOWED THE ADVICE A DAYINTHELIFE SHOW ABOUT MR YELTSIN WAS TELEVISED ON TUESDAY AND CELEBRITIES HAVE BEEN FEATURED IN GET OUT THE VOTE MESSAGES MR HILTON SAID ACCOUNTS SEVENTEEN MAGAZINE TAPPED WPP GROUP'S OGILVY & MATHER NEW YORK TO PRODUCE A TRADE AD CAMPAIGN FOLLOWING A REVIEW OF 30 AGENCIES THE MAGAZINE SAID BILLINGS ON THE NEW ACCOUNT COULDN'T BE DETERMINED ALLY & GARGANO NEW YORK WAS NAMED LOCAL AD AGENCY FOR BMW DEALERS IN PHILADELPHIA 9304260074 930426 LEISURE & ARTS TELEVISION PORTRAITS OF URBAN VIOLENCE BY ROBERT GOLDBERG BLACK AND WHITE MIDDLE CLASS AND POOR AMERICANS VIEW EACH OTHER ACROSS A CHASM AND THAT CHASM IS TELEVISION SAD TO SAY MANY OF US GET OUR IMAGES OF THE OTHER MORE FROM TV THAN FROM REAL PEOPLE RAPPERS AND HOOP STARS AND COSBY JR EWING AND CINDY CRAWFORD ON EACH SIDE THE PICTURES THAT COME FLICKERING BACK ARE AS EXOTIC AS SOME NATIONAL GEOGRAPHIC DOCUMENTARY ABOUT THE MBUTI TRIBE IN THE AFRICAN FOREST OR REINDEER HERDERS IN SCANDINAVIA IF BLACK AND WHITE ARE WORLDS APART THAT SEPARATION IS MIRRORED IN PRIMETIME PROGRAMMING PICK ANY CROSS SECTION OF THE MOST WATCHED DRAMAS AND COMEDIES ON TV AND YOU'LL SEE SOMETHING INTERESTING HOME IMPROVEMENT COACH CHEERS SEINFELD NOT A BLACK FACE IN ANY OF THEM PC SHOWS LIKE LA LAW MURPHY BROWN AND NORTHERN EXPOSURE HAVE STRETCHED MIGHTILY TO OFFER A SINGLE TOKEN CHARACTER OF COLOR YET THERE ARE MORE BLACK STARS ON TV TODAY THAN EVER BEFORE SO WHERE ARE THEY ALL ON SHOWS OF THEIR OWNALLBLACK SHOWS LIKE MARTIN ROC WHERE I LIVE HANGIN WITH MR COOPER AND FRESH PRINCE IT'S ALMOST AN ENTIRE SLATE OF SEPARATE BUT EQUAL PROGRAMS THE RARE EXCEPTIONS SERIES THAT ACTUALLY PORTRAY BLACK AND WHITE RICH AND POOR COMMUNITIES INTERACTING INCLUDE IN THE HEAT OF THE NIGHT I'LL FLY AWAY AND HOMICIDE THIS WEEK TWO COMPELLING PROGRAMS TRAVEL BACK AND FORTH ACROSS THE COLOR LINE TO EXAMINE THE HOSTILITY AND RAGE OF RECENT URBAN VIOLENCE THE FRONTLINE DOCUMENTARY LA IS BURNING FIVE REPORTS FROM A DIVIDED CITY PBS TUESDAY 91030 PM EDT CHECK LOCAL LISTINGS AND THE AMERICAN PLAYHOUSE DRAMA FIRES IN THE MIRROR PBS WEDNESDAY 91030 PM EDT ONE YEAR TO THE WEEK AFTER THE RIOTS IN LOS ANGELES MANY OF THE IMAGES ARE STILL AS DISTURBING STILL AS RAW FRONTLINE DISPATCHED FIVE OBSERVERS RANGING FROM WHITE LA TIMES COLUMNIST TIM RUTTEN TO KOREANAMERICAN PROFESSOR EDWARD CHANG TO BLACK NOVELIST JOHN EDGAR WIDEMAN TO PONDER WHAT HAPPENED LAST APRIL AND WHY THE ANSWERS THEY BRING BACK ARE FASCINATING FIRST OF ALL CONTRARY TO POPULAR BELIEF LA WAS NOT SO MUCH A BLACK/WHITE AFFAIR BUT MULTIETHNIC THE FIRST TRULY MULTIETHNIC RIOT IN AMERICAN HISTORY JOURNALIST RUBEN MARTINEZ REPORTS THAT THE MAJORITY OF THOSE ARRESTED CITYWIDE 51 WERE IN FACT LATINO MEANWHILE THE KOREANAMERICANS FEEL THEY'VE BEEN DISCRIMINATED AGAINST VICTIMIZED DOUBLY AS THEY PUT IT ONCE BY BLACK LOOTERS ONCE BY THE WHITE MEDIA LA IS BURNING RETRACES THE CHRONOLOGY WE ALL KNOW SO WELL BY NOW THE JURY VERDICT AND THE THREE DAYS OF RAMPAGE BUT FOR EACH ETHNIC COMMUNITY THE TIMELINE STARTS OR STOPS IN A DIFFERENT PLACE BLACK LEADERS GO BACK TWO DECADES TO EXPLAIN HOW BIG BUSINESS FLED SOUTH CENTRAL LA TAKING 70000 JOBS LATINO LEADERS LOOK BACK TWO CENTURIES WHEN LOS ANGELES WAS ALL MEXICAN LAND ANYWAY SOME OF THESE PEOPLE CALL WHAT HAPPENED AN UPRISING SOME SEE IT AS PLAIN LOOTING AND BRAWLING BUT THE RESPONSE TO THE TROUBLE AS MR RUTTEN REPORTS HAS BEEN UNAMBIGUOUS ACROSS THE ENTIRE AREA FROM CRENSHAW TO CULVER CITY FROM INGLEWOOD TO WESTWOOD ABSOLUTELY EVERYONE BOUGHT GUNS IN A PRIVATE ARMS RACE THE ONE THING THIS SOLID OVERVIEW LEAVES OUT IS THE ROLE OF TV THIS IS PECULIAR SINCE YOU MIGHT SAY TELEVISION IGNITED THE WHOLE POWDER KEG FOR SURELY THE VISCERAL OUTRAGE AT THE KING VERDICT GREW WITH EACH AIRING OF THE VIDEOTAPED BEATING WELL OVER 200 IN ALL NATIONALLY IF THERE HAD BEEN NO VIDEOTAPE ONLY A VERBAL DESCRIPTION THE RIOTS WOULD NEVER HAVE HAPPENED AND ONCE THEY STARTED TELEVISION ENTICED PEOPLE INTO PARTICIPATION IN THE GENERAL FUN YOU COULD SEE YOUR LOCAL STORES BEING LOOTED ON THE NEWS THEN RUN OUT TO JOIN IN STILL IN OUR CITIES TODAY YOU CAN HAVE A SERIOUS RIOT WITHOUT MUCH PRODDING FROM THE TUBE AS ANNA DEAVERE SMITH SHOWS IN HER ONEWOMAN PLAY FIRES IN THE MIRROR DIRECTED BY GEORGE C WOLFE MS SMITH RECOUNTS THE EVENTS OF AUG 19 1991 IN CROWN HEIGHTS BROOKLYN WHEN A CAR DRIVEN BY A HASIDIC MAN LURCHED OUT OF CONTROL AND UP ONTO THE SIDEWALK KILLING A SEVENYEAROLD BLACK BOY NAMED GAVIN CATO ONLY THREE HOURS LATER A GROUP OF ANGERED BLACK YOUTHS SURROUNDED A 29YEAROLD JEWISH SCHOLAR NAMED YANKEL ROSENBAUM AND STABBED HIM TO DEATH FOUR DAYS OF FIREBOMBING AND VIOLENCE FOLLOWED MS SMITH INTERVIEWED SCORES OF WITNESSES AND PARTICIPANTS AND SHE HAS CREATED 19 CHARACTER PORTRAITS THE DIALOGUE COMING VERBATIM FROM HER INTERVIEWS FROM HASIDIC RABBIS TO BLACK ACTIVISTS TO CITY OFFICIALS MS SMITH INHABITS EACH OF THE CHARACTERS IN TURN IF HER TECHNICAL PROWESS IS JUST A NOTCH BELOW THAT OF THE MOST IMPRESSIVE SHAPE SHIFTERS SUCH AS JOHN LEGUIZAMO HER MATERIAL HAS GREAT IMPACT BECAUSE ALL THE LINES AND THE PEOPLE ARE REAL AND THEIR EMOTIONS ARE POWERFUL AS A MINISTER OF THE NATION OF ISLAM SHE RAILS AGAINST SLAVERY THE DEVILISHMENT OF THE CAUCASIAN PEOPLE A CRIME OF TREMENDOUS PROPORTIONS AS A JEWISH WRITER SHE DECRIES THE MONSTROUS EVENTS OF THE HOLOCAUST AND JUST AS IN LA ALL COMMUNITIES POINT TO PREFERENTIAL TREATMENT FOR OTHERS THE JEWMAN WILL NEVER GET ARRESTED DAVID DINKINS IS THE MAYOR OF THE AFRICANAMERICANS OF NEW YORK WHAT BOTH LA IS BURNING AND FIRES IN THE MIRROR BRING TO US IS A MULTIPLICITY OF VIEWPOINTS WHICH IS FITTING BECAUSE SURELY THE COMPLEX TRUTH LIES IN THIS FRACTURED APPROACH BUT IN EACH CASE WHAT'S MOST TELLING IS THE SILENCE BETWEEN THE VOICES THE HUGE GAP BETWEEN THE DIFFERENT PERCEPTIONS IN THE END THE VIEWER IS LEFT WITH A SERIES OF TWIN IMAGES A PICTURE OF TWO BEATINGS SIDE BY SIDE UNIFORMED OFFICERS POUNDING RODNEY KING AND STREET TOUGHS KICKING THE FALLEN TRUCK DRIVER REGINALD DENNY AND TWO FACES THE SHY GRIN OF GAVIN CATO THE SMILE OF YANKEL ROSENBAUM THEY ARE MATCHED SETS OF MISFORTUNE AS IF ALL THE WORLD HELD SOME TERRIBLE SYMMETRY OF SORROW SOME GREAT EQUATION OF PAIN AND DISTANCE AND THOUGH THEY SPEAK IN MANY VOICES BOTH PROGRAMS ARRIVE AT THE SAME POINT IT'S GONNA HAPPEN AGAIN 9304260073 930426 GLOBAL VIEW ITALY STEPS INTO THE TUNNEL' TOWARD CHANGE BY GEORGE MELLOAN GREAT POLITICAL UPHEAVALS AS WITH TRAINWRECKS TEND TO HAVE MULTIPLE CAUSES NOWHERE DOES THAT RULE APPLY BETTER THAN TO LAST WEEK'S POPULAR UPRISING AGAINST THE EXISTING POWER ELITES OF ITALY BY VOTING OVERWHELMINGLY FOR A FUNDAMENTAL CHANGE IN THEIR ELECTORAL LAWS AIMING THE COUNTRY TOWARD A GENUINE TWOPARTY SYSTEM ITALY'S VOTERS MADE IT CLEAR THAT THEY HAVE HAD IT UP TO HERE WITH KICKBACKS MAFIA INFLUENCES TAX GOUGING FISCAL IRRESPONSIBILITY RAMPANT PATRONAGE AND ALL THE OTHER MALEFACTIONS THAT MAKE ITALY'S THE MOST CORRUPT POLITICAL SYSTEM IN EUROPE BUT SOMEONE IN POLITICS NOW WILL HAVE TO STEP FORWARD TO LEAD THE COUNTRY THE REST OF THE WAY TO WHAT THE VOTERS ARE SO CLEARLY DEMANDING SERGIO ROMANO AN EDITORIALIST FOR LA STAMPA NEWSPAPER AND A PROMINENT WRITER OF HISTORY BOOKS AND OTHER WORKS SAYS WITH LAST WEEK'S VOTE WE STEPPED INTO THE TUNNEL BUT WE DON'T KNOW YET WHERE THE TUNNEL WILL LEAD THE PROBLEM IS THAT WE ARE DEPENDING ON POLITICIANS THE PEOPLE VOTED AGAINST TO MAKE THE CHANGES THE PEOPLE WANT WE ARE ASKING THEM TO SIGN THEIR OWN DEATH WARRANTS AT FIRST GLANCE THIS SEEMS TO REQUIRE A STRONGER ROLE FOR ITALY'S PRESIDENT OSCAR LUIGI SCALFARO WHO PLAYED SOME PART IN ENGINEERING LAST WEEK'S REFERENDUM UNDER THE ITALIAN CONSTITUTION THE PRESIDENCY IS A WEAK OFFICE BUT IN CURRENT CIRCUMSTANCES MORAL STANDING MAY BE MORE IMPORTANT THAN LEGAL STATUS MR SCALFARO HAS THAT PLUS AN OPPORTUNITY TO RISE ABOVE THE FRAY IF HE DOES SO USING HIS POST TO CAPTAIN THE POWERFUL PUBLIC DEMAND FOR CHANGE HE MIGHT WELL BE ABLE TO LEAD THE COUNTRY TOWARD THE MOST LOGICAL SOLUTION TO ITS PROBLEM ELECTION OF A CONSTITUENT ASSEMBLY TO WRITE A NEW CONSTITUTION AS THINGS STAND NOW THE REFERENDUM HAS LEFT SOMETHING OF A MESS THE VOTERS ORDAINED BY A MASSIVE 83 MAJORITY THAT THREEQUARTERS OF SENATE SEATS HENCEFORTH WILL BE FILLED BY THE CANDIDATE WHO WINS THE MOST VOTES IN A CONSTITUENCY THAT'S A MAJOR CHANGE FROM THE CURRENT PROPORTIONAL REPRESENTATION SYSTEM IN WHICH THE MYRIAD POLITICAL PARTIES DIVIDE UP SEATS ON THE BASIS OF HOW MANY VOTES THEY POLLED THE OLD SYSTEM HAS MEANT THAT THERE IS NEVER A TRUE OPPOSITION PARTY MERELY SHIFTING PARTY COALITIONS ITALY HAS HAD 51 DIFFERENT GOVERNMENTS SINCE WORLD WAR II THE SENATE AND CHAMBER OF DEPUTIES THUS HAVE BEEN TOWERS OF BABEL ALWAYS RUN BY THE SAME BABBLERS WITH EACH MEMBER SHARING IN A HUGE PATRONAGE SYSTEM IT IS A PRESCRIPTION FOR CORRUPTION AND ITALIANS HAVE BEEN LEARNING OVER THE PAST YEAR JUST HOW MUCH CORRUPTION THEY HAVE BUT THE SENATE WAS THE ONLY HOUSE SUBJECT TO THE REFERENDUM IT WILL BE UP TO THE PARLIAMENT ITSELF TO DECIDE WHETHER THE SAME VOTING SYSTEM IS TO BE ADOPTED FOR ELECTING MEMBERS OF THE CHAMBER OF DEPUTIES BECAUSE THE CHAMBERS HAVE ROUGHLY EQUAL POWERS POLITICAL OBSERVERS WONDER HOW IT CAN BE POSSIBLE FOR SENATORS TO BE ELECTED ONE WAY AND DEPUTIES ANOTHER THERE IS ALSO THE FEAR THAT THE NEW FIRSTPASTTHEPOST SYSTEM WILL EXACERBATE THE REGIONAL SPLITS THAT ARE DEVELOPING IN ITALIAN POLITICS THE INCREASINGLY POWERFUL LOMBARD LEAGUE WHICH ONCE ADVOCATED SEPARATION OF THE NORTH FROM THE SOUTH WILL PERHAPS CONTROL THE NORTH THE FORMER COMMUNISTS NOW CALLED THE DEMOCRATIC PARTY OF THE LEFT WILL CONTROL THE MIDDLE AND THE CHRISTIAN DEMOCRATS AND SOCIALISTS WILL BE LEFT WITH THE IMPOVERISHED AND MAFIARIDDEN SOUTH ALL THIS IS AN ARGUMENT FOR PUTTING TOGETHER A CONSTITUTIONAL ASSEMBLY POSTHASTE IT SHOULD AIM FOR A TWOPARTY SYSTEM ALONG BRITISH LINES SO THAT THERE WILL BE A STRONG PARTY IN POWER TO BE HELD ACCOUNTABLE BY THE VOTERS AND A STRONG OPPOSITION PARTY TO OFFER ALTERNATIVE POLICIES AND SMELL OUT MAJORITYPARTY MISDEEDS VOTERS KNEW THAT FIRSTPASTTHEPOST LEADS TOWARD SUCH A SYSTEM WHICH IS WHY THEY ENDORSED IT FOR THE SENATE BUT TO HOLD ITALY TOGETHER A NEW CONSTITUTION ALSO SHOULD CALL FOR A STRONG PRESIDENCY PURELY LEGISLATIVE GOVERNANCE HASN'T WORKED AND THERE IS A MESSAGE THERE FOR ALL POWERHUNGRY PARLIAMENTS INCLUDING ENTRENCHED MEMBERS OF THE US HOUSE OF REPRESENTATIVES ITALIAN VOTERS TOOK A BROAD SWIPE AT THE PARLIAMENT WITH LAST WEEK'S REFERENDUM QUESTIONS BY VERY LARGE MAJORITIES THEY LOWERED THE BOOM ON SUBSIDIES TO POLITICAL PARTIES AND WIPED OUT THE MINISTRIES OF AGRICULTURE AND TOURISM FAVORITE CONDUITS OF PATRONAGE POLITICAL APPOINTMENTS OF STATE SAVINGSBANK DIRECTORS YET ANOTHER LARGE PATRONAGE EMPIRE WERE ABOLISHED THE EMPHATIC PUBLIC REACTION IS NOT SURPRISING IF YOU LOOK AT WHAT HAS BEEN HAPPENING IN ITALY ITALIANS HAVE LONG SUSPECTED THAT THE DOMINANT CHRISTIAN DEMOCRATIC PARTY WAS CORRUPT ITS STRONG SUPPORT IN THE SOUTH AND IN SICILY WHERE THE MAFIA INFLUENCE IS POWERFUL FANNED THOSE SUSPICIONS BUT VOTERS KNEW IT WAS AT LEAST ANTICOMMUNIST BY LAST APRIL HOWEVER COMMUNISM HAD COLLAPSED AND BOTH THE CHRISTIAN DEMOCRATS AND FORMER COMMUNISTS TOOK A THUMPING IN PARLIAMENTARY ELECTIONS MOREOVER THE MAFIA HAD BECOME EVEN MORE IMPOSSIBLE ASSASSINATING A POPULAR ANTIMAFIA JUDGE GIOVANNI FALCONE HIS WIFE AND THREE BODYGUARDS ON A BEACH ROAD NEAR PALERMO PUBLIC FURY AND SIGNS THAT THE EXISTING POWER STRUCTURE WAS CRUMBLING BROUGHT INTO PLAY AN INSTITUTION UNIQUE TO ITALY ITS INDEPENDENT PROSECUTORIAL SYSTEM JUDGES AND PROSECUTORIAL MAGISTRATES ARE ORGANIZED INTO WHAT IS ESSENTIALLY A GUILD WHICH CHOOSES ITS OWN MEMBERS THROUGH MERIT EXAMS THE SYSTEM HAS NOT BEEN IMMUNE TO POLITICAL OR EVEN MAFIA INFLUENCE BUT LAST YEAR'S EVENTS UNLEASHED IT WITH A FURY LUCA MAGNI A 32YEAROLD CLEANING CONTRACTOR WHO COMPLAINED THAT HE WAS FORCED TO PAY KICKBACKS TO THE MANAGER OF A LARGE PUBLIC NURSING HOME IN MILAN TOUCHED OFF A JUDICIAL SWEEP CALLED OPERATION CLEAN HANDS TO DATE THAT SWEEP HAS PUT MORE THAN 2600 POLITICIANS AND BUSINESSMEN INCLUDING THREE FORMER PRIME MINISTERS UNDER ARREST OR INVESTIGATION SOME SERIOUS ITALIANS FEAR THAT THE JUDICIARY WITH ITS BROAD POWERS TO BOTH INVESTIGATE AND JUDGE HAS ITSELF GONE OUT OF CONTROL SMEARING SOME PUBLIC FIGURES WHO MAY WELL BE INNOCENT BUT ITALIANS GENERALLY FED UP WITH CORRUPTION HAVE BEEN CHEERING OPERATION CLEAN HANDS IT ALSO HAS SUPPORT FROM SOME BUSINESSMEN WHO BELIEVE THAT THE LARGE BURDEN OF POLITICAL KICKBACKS DAMAGES THEIR ABILITY TO COMPETE IN EUROPE'S SINGLE MARKET SOME ITALIANS HAD HOPED THAT THE MAASTRICHT TREATY WOULD SOLVE THEIR DOMESTIC PROBLEMS BY MERGING ITALY INTO A NEW EUROPE BUT NOW THEY DOUBT THAT POSSIBILITY INDEED IF ITALY IS TO BE CLEANED UP THE ITALIANS WILL HAVE TO DO IT FOR THEMSELVES AFTER LAST WEEK'S REFERENDUM THERE NOW IS AT LEAST SOME HOPE THAT THE JOB CAN BE DONE POLITICIANS WHO DISAPPOINT THOSE HOPES WILL DO SO AT THEIR OWN PERIL 9304260071 930426 BUSINESS BRIEF MINOLTA CAMERA CO ESTIMATES FOR YEAR LOWERED ON UNCONSOLIDATED RESULTS MINOLTA CAMERA CO LOWERED ITS UNCONSOLIDATED BUSINESS FORECASTS FOR THE FISCAL YEAR ENDED MARCH 1993 CITING WEAKER GLOBAL ECONOMIC CONDITIONS THAN THE COMPANY HAD ORIGINALLY EXPECTED THE COMPANY ALSO REPORTED VALUATION LOSSES OF 31 BILLION YEN 28 MILLION ON ITS SECURITIES HOLDINGS AT THE END OF THE LATEST FISCAL YEAR THE COMPANY BASED IN TOKYO FORECAST A PRETAX LOSS OF 136 BILLION YEN COMPARED WITH ITS PREVIOUS FORECAST OF A 12 BILLION YEN LOSS MINOLTA SAID THE A 31 BILLION YEN VALUATION LOSS COVERS ONLY THOSE SECURITIES IN ITS PORTFOLIO THAT ARE BELOW THEIR PURCHASE VALUE THE MARKET VALUE OF THOSE SHARES AS OF MARCH 31 CAME TO 5976 BILLION YEN COMPARED WITH A BOOK VALUE OF 9075 BILLION YEN 9304260070 930426 INTERNATIONAL PEMEX EXPECTED TO PERMIT PROJECT BY USLED GROUP MEXICO CITY MEXICAN PETROLEUM MONOPOLY PETROLEOS MEXICANOS SA TODAY IS EXPECTED TO OPEN ITS DOORS A LITTLE WIDER BY PERMITTING A USLED GROUP TO BUILD AND OPERATE A 300 MILLION GASOLINEADDITIVE PLANT ON MEXICAN SOIL PEOPLE CLOSE TO PEMEX SAID THE DEAL IS IMPORTANT IN THAT PEMEX FAMOUS SINCE THE NATIONALIZATION OF THE OIL INDUSTRY IN 1938 AS THE PROTECTOR AND SOLE BROKER OF MEXICO'S PETROLEUM PATRIMONY WON'T BE INVOLVED IN THE PROJECT IN ANY WAY OTHER THAN AS A SUPPLIER OF CERTAIN PETROCHEMICALS REQUIRED BY THE PLANT PEMEX SOURCES SAID PAPERS WILL BE SIGNED TODAY IN THE GULF COAST CITY OF COATZACOALCOS GIVING FINAL APPROVAL TO PROESA SA TO BEGIN CONSTRUCTION OF THE FACILITY PROESA IS COMPOSED OF VALERO ENERGY CORP OF HOUSTON MEXICAN BANKING GROUP BANACCI SA INFOMIN SA OF MEXICO AND DRAGADOS CEPSA SA PROESA IS A SHORTENED FORM OF PROYECTOS ECOLOGICOS SA THE PLANT WILL PRODUCE METHYL TERTIARY BUTYL ETHER WHICH RAISES A GASOLINE'S OXYGEN CONTENT MAKING IT LESS POLLUTIVE THE PROESA PROJECT HAS BEEN WIDELY EXPECTED BUT HAS BEEN ON HOLD FOR THE PAST SEVERAL MONTHS 9304260069 930426 MITSUKOSHI POSTS LOSS OTHER RETAILERS SHOW PROFIT DROP FOR YEAR SPECIAL TO THE WALL STREET JOURNAL TOKYO MITSUKOSHI LTD A MAJOR JAPANESE DEPARTMENT STORE OPERATOR POSTED AN UNCONSOLIDATED PRETAX LOSS FOR THE FISCAL YEAR WHILE THREE OTHER DEPARTMENT STORE CONCERNS REPORTED SHARPLY LOWER PRETAX PROFIT MITSUKOSHI POSTED AN UNCONSOLIDATED PRETAX LOSS OF 216 BILLION YEN 196 MILLION DURING THE FISCAL YEAR THROUGH FEB 1993 AMID A DECLINE IN JAPANESE CONSUMPTION OUTLAYS THAT LOSS COMPARES WITH YEAREARLIER PROFIT OF 1099 BILLION YEN SALES FELL 39 TO 84237 BILLION YEN FROM 87662 BILLION YEN MITSUKOSHI PREDICTED CONDITIONS WILL REMAIN SEVERE DURING THE CURRENT FISCAL YEAR WITH UNCONSOLIDATED SALES LIKELY TO EDGE LOWER ALTHOUGH THE COMPANY FORECASTS A RETURN TO PROFITABILITY ON THE PRETAX LEVEL TOKYU DEPARTMENT STORE CO REPORTED THAT ITS GROUP PRETAX PROFIT FELL 27 DURING THE FISCAL YEAR ENDED JAN 31 MOSTLY REFLECTING POOR SALES FOR THE PARENT COMPANY AMID JAPAN'S WEAK ECONOMY PRETAX PROFIT WAS 790 BILLION YEN COMPARED WITH 1080 BILLION YEN A YEAR EARLIER SALE WERE DOWN 38 FOR THE YEAR TO 53712 BILLION YEN FROM 55830 BILLION YEN MATSUZAKAYA CO SAID ITS PARENT PRETAX PROFIT PLUMMETED 62 DURING THE FISCAL YEAR ENDED FEB 28 TO 378 BILLION YEN FROM 1002 BILLION YEN SALES FELL 21 TO 49137 BILLION YEN FROM 50196 BILLION YEN DAIMARU INC REPORTED ITS UNCONSOLIDATED OR PARENTONLY PRETAX PROFIT FOR THE FISCAL YEAR THAT ENDED FEB 28 FELL 23 TO 466 BILLION YEN FROM 607 BILLION YEN SALES FELL 63 TO 56980 BILLION YEN FROM 60835 BILLION YEN 9304260068 930426 BUSINESS BRIEF PERFUMANIA INC PRELIMINARY PACT REACHED TO SETTLE HOLDER LAWSUIT PERFUMANIA INC A RETAILER AND DISTRIBUTOR OF FRAGRANCES SAID IT ENTERED INTO A PRELIMINARY AGREEMENT TO SETTLE A SHAREHOLDER SUIT RELATED TO AN ALLEGED PURCHASE OF 35 MILLION OF COUNTERFEIT PERFUME UNDER THE AGREEMENT THE MIAMI COMPANY WOULD PAY SHAREHOLDERS 850000 AND AS MUCH AS 50000 IN ADMINISTRATIVE COSTS ACCORDING TO RICHARD GARRETT A MIAMI ATTORNEY REPRESENTING PERFUMANIA THE COMPANY SAID IT RESERVED 700000 IN ITS FISCAL YEAR ENDED IN JANUARY TO COVER ITS SHARE OF THE SETTLEMENT AND LEGAL COSTS INSURANCE WILL COVER ABOUT HALF OF THE SETTLEMENT MR GARRETT SAID CHAIRMAN ILIA LEKACH SAID PERFUMANIA STILL BELIEVES THAT THE PERFUME IN QUESTION ISN'T COUNTERFEIT THE COMPANY IS STILL IN TALKS WITH COSMAIR INC A UNIT OF L'OREAL SA AND THE US LICENSOR OF DRAKKAR NOIR PERFUME WHICH SOUGHT AN INJUNCTION TO PREVENT PERFUMANIA FROM SELLING THE PERFUME HE SAID PERFUMANIA SAID THE ALLEGATIONS HURT ITS WHOLESALE SALES IN THE YEAR ENDED JAN 31 TOTAL SALES FELL 156 TO 724 MILLION ACCORDING TO RESULTS RELEASED LAST WEEK 9304260067 930426 BUSINESS BRIEF UCB SA CHEMICAL FIRM'S EARNINGS CLIMBED 17 DURING 1992 UCB SA A BELGIAN CHEMICAL GROUP SAID 1992 NET PROFIT CLIMBED 17 AS ITS THREE MAIN BUSINESSES DRUGS SPECIALITY CHEMICALS AND PLASTICS ALL SHOWED IMPROVEMENTS EARNINGS ROSE TO 225 BILLION BELGIAN FRANCS 68 MILLION FROM 192 BILLION FRANCS A YEAR EARLIER SALES CLIMBED 33 TO 4713 BILLION FRANCS FROM 4561 BILLION FRANCS UCB SAID RECURRING PROFIT ON PHARMACEUTICAL OPERATIONS WAS 15 BILLION FRANCS UP FROM 145 BILLION FRANCS IN 1991 CHAIRMAN GEORGE JACOBS SAID SALES WERE HURT BY BUDGETARY MEASURES IN BELGIUM AND GERMANY SALES CONTINUED TO BE AFFECTED DURING THE FIRST MONTHS OF 1993 BUT WERE STARTING TO IMPROVE IN MARCH HE ADDED UCB SAID IN A STATEMENT THAT IT WILL BE DIFFICULT IN 1993 TO ACHIEVE A PROFIT AS GOOD AS THAT IN 1992 IN VIEW OF THE POOR ECONOMIC CLIMATE 9304260066 930426 BUSINESS BRIEF BALTIMORE GAS & ELECTRIC CO REGULATORS GRANT ABOUT 50 OF RATE BOOST FIRM SOUGHT REGULATORS GRANTED BALTIMORE GAS & ELECTRIC CO ABOUT HALF OF WHAT IT SOUGHT IN ELECTRIC RATE INCREASES TO ABSORB HIGHER OPERATING COSTS AND CAPITAL INVESTMENT THE COMPANY SAID THE HIGHER OPERATING COSTS AND INVESTMENT WERE DUE TO INFLATIONARY AND REGULATORY PRESSURES THE RATE INCREASE ALSO PARTLY INCLUDES THE COST OF NEW ACCOUNTING FOR HEALTH BENEFITS THE MARYLAND PUBLIC SERVICE COMMISSION GRANTED A RATE INCREASE OF 849 MILLION BALTIMORE GAS & ELECTRIC HAD SOUGHT 1638 MILLION IT ALSO GRANTED A GAS RATE INCREASE OF 16 MILLION THE COMPANY HAD SOUGHT 56 MILLION THE COMPANY SAID RESIDENTIAL USERS OF 620 KILOWATT HOURS A MONTH WOULD PAY 369 MORE ON THEIR BILLS OR 6022 AND USERS OF 80 THERMS OF GAS WOULD HAVE A MONTHLY INCREASE OF 22 CENTS TO 5106 MORE THAN HALF OF ITS RESIDENTIAL BILLS ARE FOR THOSE AMOUNTS OF USAGE THE UTILITY SAID THE COMPANY DECLINED TO COMMENT ON THE RATES UNTIL THEY FURTHER ANALYZE THE REGULATORS' DECISION 9304260065 930426 COMPUTERS MOTOROLA CHALLENGES INTEL IN PRICING ITS NEW MICROCHIP BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL MOTOROLA INC PART OF AN ALLIANCE THAT POSES THE MOST EXTENSIVE THREAT TO THE PERSONALCOMPUTER HEGEMONY OF INTEL CORP AND MICROSOFT CORP IS PURSUING AN AGGRESSIVE MARKETING STRATEGY THAT MAY LEAD TO UNEXPECTEDLY LOW PRICES FOR THE NEXT GENERATION OF PCS MOTOROLA AIMING TO CRACK INTEL'S DOMINANCE IN MICROPROCESSORS PLANS TO SHARPLY UNDERCUT INTEL'S PRICES WITH A NEW CHIP IT IS DEVELOPING IN A CLOSELY WATCHED VENTURE WITH INTERNATIONAL BUSINESS MACHINES CORP AND APPLE COMPUTER INC THE SCHAUMBURG ILL ELECTRONICS CONCERN PLANS TO ANNOUNCE TODAY THAT THE FIRST VERSIONS OF ITS MICROPROCESSOR CALLED THE POWERPC AND INTENDED FOR USE AS THE BRAINS OF A NEW GENERATION OF DESKTOP COMPUTERS WILL BE PRICED AT LESS THAN HALF THE EXPECTED PRICE OF INTEL'S NEWEST CHIP THE PENTIUM MOTOROLA AND ITS TWO ALLIES ARE HOPING TO WREST AWAY SOME OF THE NEARMONOPOLY PROFITS GENERATED BY INTEL'S BESTSELLING MICROPROCESSORS AND MICROSOFT'S WINDOWS AND DOS OPERATING SYSTEMS THE THREE WANT TO DEVELOP A NEW STANDARD FOR DESKTOP COMPUTERS RUNNING ON MOTOROLA'S POWERPC CHIP AND A NEW OPERATING SYSTEM DESIGNED BY A JOINT VENTURE CALLED TALIGENT MOTOROLA'S PRICING AND OTHER MARKETING STRATEGIES WILL BE CRUCIAL DETERMINANTS OF WHETHER ENOUGH COMPUTER BUYERS OPT FOR POWERPCBASED MACHINES TO BUOY THE FORTUNES OF IBM AND APPLE AND WIN BACK FOR MOTOROLA THE STRONG PRESENCE IT ONCE HAD IN COMPUTER MICROPROCESSORS TO CHALLENGE INTEL SERIOUSLY THE POWERPC MUST GATHER A CRITICAL MASS OF USERS IN ORDER TO GENERATE A BIG ENOUGH LIBRARY OF SOFTWARE TO IN TURN SPUR ADDITIONAL POWERPC COMPUTER PURCHASES OUR GOAL IS TO MAKE THE POWERPC A STANDARD IN THE COMPUTER INDUSTRY SAID PHILLIP POMPA A MOTOROLA DIRECTOR OF MARKETING TO THAT END MOTOROLA IS AIMING AT A CHIP PRICE THAT ALLOWS COMPUTER MAKERS TO HIT THE PC MARKET'S SWEET SPOT FOR MACHINES COSTING SEVERAL THOUSAND DOLLARS SOME POWERPCBASED MACHINES MR POMPA SAID WILL GO FOR LESS THAN 2500 EACH WELL WITHIN THE PRICE RANGE OF TYPICAL PCS USING INTEL'S 486 CHIP AND FAR BELOW THE 5000 THAT THE FIRST PENTIUMBASED MACHINES ARE EXPECTED TO COST STARTING THIS SUMMER BUT THE FIRST POWERPC MACHINES AREN'T EXPECTED TO BE OUT UNTIL YEAR END AT THE EARLIEST GIVING INTEL TIME TO DROP ITS OWN PRICES AND WHATEVER THE POWERPC CHIP'S PRICE ADVANTAGE ANALYSTS SAY IT IS MISSING AN ESSENTIAL INGREDIENT THE ABILITY TO RUN MICROSOFT'S NEW WINDOWS NT OPERATING SYSTEM UNTIL THE POWERPC GETS MICROSOFT'S ENDORSEMENT IT FACES A LIMITED MARKET SAID MICHAEL SLATER PUBLISHER OF MICROPROCESSOR REPORT AN INDUSTRY NEWSLETTER THE POWERPC CAN'T MAKE ANY REAL INROADS UNTIL IT RUNS THE SOFTWARE THAT PEOPLE WANT MR SLATER SAID SOME INDUSTRY OBSERVERS DOUBT MICROSOFT WILL ADAPT NT TO THE POWERPC BECAUSE THE CHIP WILL BE USED TO SUPPORT A COMPETING OPERATING SYSTEM DEVELOPED BY APPLE AND IBM MOTOROLA IS EXPECTED TO ANNOUNCE TODAY THAT IT HAS BEGUN SHIPPING PROTOTYPES OF THE CHIP TO COMPUTER MANUFACTURERS MOTOROLA PLANS TO PRICE ITS CHIPS AT 280 EACH IN LARGE LOTS FOR A VERSION WHOSE INTERNAL CLOCK RUNS AT 50 MEGAHERTZ AND 374 EACH FOR A FASTER 66MEGAHERTZ VERSION INTEL HASN'T DISCLOSED HOW MUCH IT IS CHARGING FOR ITS FIRST PENTIUM CHIPS BUT PEOPLE FAMILIAR WITH INTEL'S PRICING SAY THE CHIPS LIST FOR LESS THAN 900 APIECE IN LARGE ORDERS THE POWERPC CHIP DESIGNED WITH TECHNOLOGIES COLLECTIVELY CALLED REDUCED INSTRUCTIONSET COMPUTING WILL CONTAIN 28 MILLION TRANSISTORS 10 FEWER THAN THE PENTIUM BUT MR SLATER SAYS THE POWERPC IS ROUGHLY EQUIVALENT IN COMPUTING POWER TO THE PENTIUM MOTOROLA'S NEW CHIP IS TARGETED FOR USE NOT ONLY IN PCS BUT IN POWERFUL DESKTOP COMPUTERS CALLED WORKSTATIONS IN MACHINES CALLED SERVERS THAT ARE USED AS DATA BANKS AND CENTRAL PROCESSING CENTERS AS WELL AS IN POWERFUL MAINFRAME MACHINES AND SUPERCOMPUTERS THAT CHAIN TOGETHER MANY MICROPROCESSORS APPLE AND IBM PLAN TO BUILD THE CHIP INTO FUTURE MACHINES ALONG WITH THE TALIGENT OPERATINGSYSTEM SOFTWARE APPLE IS ALSO DEVELOPING A MACINTOSH OPERATING SYSTEM FOR THE CHIP AND SUN MICROSYSTEMS INC HAS AGREED TO ADAPT ITS NEW SOLARIS OPERATING SYSTEM TO THE CHIP BUT THE MOTOROLAIBMAPPLE ALLIANCE IS AIMING AT THE SAME MARKETS AS INTEL WITH ITS PENTIUM AND DIGITAL EQUIPMENT CORP SUN HEWLETTPACKARD CO AND SILICON GRAPHICS INC EACH WITH ITS OWN MICROPROCESSOR AND THE POWERPC DESPITE ITS BIG BACKERS FACES THE SAME BIG HURDLE AS THE OTHERS INCUMBENTS INTEL AND MICROSOFT HAVE A TREMENDOUS ADVANTAGE IN THEIR BROAD CUSTOMER BASE AND IN THEIR ECONOMIES OF SCALE AN INTEL SPOKESMAN SAID THAT POTENTIAL POWERPC CUSTOMERS MUST CONSIDER A LOT OF PAIN AND SUFFERING IN WORKING WITH AN UNPROVEN CHIP AND NEW SOFTWARE COMPARED WITH THE PROVEN TECHNOLOGY OF INTEL'S CHIPS AND MICROSOFT'S SOFTWARE STILL THE SPOKESMAN SAID THE SANTA CLARA CALIF COMPANY HAS A HEALTHY RESPECT FOR ITS COMPETITORS WHO ENCOURAGE US TO RUN AS FAST AND EFFICIENTLY AS WE CAN MOTOROLA IS ALSO EXPECTED TO ANNOUNCE THAT IT IS DEVELOPING THREE OTHER POWERPC CHIP MODELS WITH IBM AT MOTOROLA'S FACILITY IN AUSTIN TEXAS INCLUDING MODELS DESIGNED FOR USE IN HANDHELD COMPUTERS MIDRANGE COMPUTERS AND SUPERCOMPUTERS 9304260064 930426 BUSINESS BRIEF TNT LTD EUROPEAN SERVICE NOT LIKELY TO SHOW A PROFIT UNTIL 1995 TNT LTD AN AUSTRALIANBASED INTERNATIONAL TRANSPORTATION COMPANY DOESN'T EXPECT ITS TROUBLED EUROPEAN PARCEL SERVICE TO BE PROFITABLE FOR ANOTHER TWO YEARS DAVID MORTIMER TNT CHIEF EXECUTIVE SAID AT A PRESS BRIEFING IN LONDON FRIDAY THAT ALTHOUGH THE WORST IS OVER THERE IS STILL QUITE A BIT OF WORK LEFT AND IT WILL BE ANOTHER COUPLE OF YEARS BEFORE ITS PARTNERSHIP WITH GD EXPRESS WORLDWIDE BECOMES PROFITABLE TNT RUNS THE EUROPEAN PARCEL SERVICE GD EXPRESS IN PARTNERSHIP WITH FIVE POSTAL ORGANIZATIONS MR MORTIMER SAID TNT HAS ANOTHER 50 MILLION AUSTRALIAN DOLLARS US355 MILLION EARMARKED FOR A FURTHER EQUITY INJECTION INTO GD EXPRESS BUT THAT THERE ARE NO CURRENT PLANS TO USE IT TNT HAS BEEN OPERATING AT A LOSS FOR THE LAST TWO YEARS BUT MR MORTIMER SAID HE EXPECTS THE COMPANY TO FINISH AHEAD OF ITS OBJECTIVES THIS FINANCIAL YEAR MR MORTIMER SAID TNT'S WOES WHICH INCLUDE DEBT OF 14 BILLION AUSTRALIAN DOLLARS WAS MORE A RESULT OF OVERAMBITIOUS EXPANSION RATHER THAN RECESSION 9304260063 930426 LEISURE & ARTS BOOKSHELF BOYS TRYING TO MAKE SENSE OF GIRLS BY MERLE RUBIN IN HIS FIRST NOVEL THE VIRGIN SUICIDES FARRAR STRAUS & GIROUX 249 PAGES 18 JEFFREY EUGENIDES INVENTS NOT ONE BUT FIVE ATTRACTIVE YOUNG WOMEN TEENAGERS REALLY WHO IT'S CLEAR FROM THE OUTSET AS WELL AS THE TITLE WILL TAKE THEIR OWN LIVES WITHIN THE COURSE OF THE STORY SURPRISINGLY MR EUGENIDES MANAGES TO FASHION AN ARRESTING NOVEL FROM THIS GLUMLY PECULIAR MATERIAL THE SETTING IS SUBURBIA IN THE 1970S THE AUTHOR'S HOMETOWN OF GROSSE POINTE MICH REFASHIONED AS A PLACE WHERE NO ONE EVER SEEMS TO DIE THERE HAD NEVER BEEN A FUNERAL IN OUR TOWN BEFORE AT LEAST NOT DURING OUR LIFETIMES THE MAJORITY OF DYING HAD HAPPENED DURING THE SECOND WORLD WAR WHEN WE DIDN'T EXIST AND OUR FATHERS WERE IMPOSSIBLY SKINNY YOUNG MEN IN BLACKANDWHITE PHOTOGRAPHS THE STORY OF THE UNHAPPY LISBON SISTERS IS NARRATED BY A GROUP OF HIGH SCHOOL BOYS NOW MIDDLEAGED MEN SPEAKING AS ONE VOICE PIECING TOGETHER CLUES AND MEMORIES FROM THE YEAR IN WHICH THE GIRLS KILLED THEMSELVES PRETTY PLUMPCHEEKED DAUGHTERS OF AN UNPREPOSSESSING HIGH SCHOOL MATH TEACHER AND HIS GRIMLY REPRESSIVE WIFE THE LISBON GIRLS STRIKE THE BOYS AS THE VERY ESSENCE OF THAT MYSTERIOUS QUALITY CALLED FEMININITY THE GIRLS' UPBRINGING HAS BEEN STRICT EVEN BY THE STANDARDS OF THE ROMAN CATHOLIC SCHOOL THEY AND THE BOYS ATTEND THEIR HOUSE IS OFFLIMITS TO MALE VISITORS AND THE GIRLS ARE FORBIDDEN TO WEAR MAKEUP OR GO ON DATES MOST OF WHAT THE BOYS KNOW ABOUT THE GIRLS COMES FROM SNOOPING THE BOYS PORE OVER A DIARY WRITTEN BY ONE OF THE GIRLS AND SO WE LEARNED ABOUT THEIR LIVES WE KNEW WHAT IT FELT LIKE TO SEE A BOY WITH HIS SHIRT OFF WE COULD NEVER UNDERSTAND WHY THE GIRLS CARED SO MUCH ABOUT BEING MATURE OR WHY THEY FELT COMPELLED TO COMPLIMENT EACH OTHER BUT SOMETIMES AFTER ONE OF US HAD READ A LONG PORTION OF THE DIARY OUT LOUD WE HAD TO FIGHT BACK THE URGE TO HUG ONE ANOTHER OR TO TELL EACH OTHER HOW PRETTY WE WERE WE KNEW THAT THE GIRLS WERE OUR TWINS AND THAT THEY KNEW EVERYTHING ABOUT US THOUGH WE COULDN'T FATHOM THEM AT ALL CECILIA AT 13 THE YOUNGEST AND MOST PIOUS IS THE FIRST TO DIE BUT WHETHER IN SOME WEIRD PREORDAINED DANCE OF DEATH OR IN AN ANOMALOUS INCIDENT THAT PLUNGED THE REST OF THE FAMILY INTO THE DEPRESSION LEADING TO THE OTHER FOUR SUICIDES IS A QUESTION THE BOYS CAN'T ANSWER IN THE DANGEROUS INTERIM BETWEEN CECILIA'S DEATH AND THOSE THAT FOLLOW THE BOYS TRY TO RESCUE OR AT LEAST UNDERSTAND THE LISBON GIRLS AT A SCHOOL DANCE THE SISTERS SEEM ALMOST COMICALLY NORMAL CECILIA WAS WEIRD BUT WE'RE NOT' REMARKS THERESE WE JUST WANT TO LIVE IF ANYONE WOULD LET US' IT'S NEVER CLEAR WHO OR WHAT WON'T LET THEM BUT HAVING COME IN SOME STRANGE WAY TO KNOW THE GIRLS THE BOYS FEEL CERTAIN THAT NO ONE ELSE HAS THE RIGHT TO EXPLAIN THEIR TRAGEDY AWAY MR EUGENIDES'S USE OF THE COLLECTIVE WE UNCANNILY EVOKES THE WRY VOICE OF ADOLESCENCE AND THE MIXTURE OF CURIOSITY LUST TENDERNESS MORBIDITY CYNICISM AND NAIVETE SURROUNDING THESE BIZARRE EVENTS HE TENDS PERHAPS TO RELY TOO HEAVILY ON STYLE AS A SUBSTITUTE FOR DEPTH AND SUBSTANCE BUT HIS DEADPAN PROSE AND KEEN SENSE OF INTONATION CARRY THE DAY THE KIDNAPPING OF A TEENAGE GIRL IS THE FODDER FOR SOME UNFUNNY BLACK COMEDY IN TIM PARKS'S JUGGLING THE STARS GROVE PRESS 218 PAGES 1895 AUTHOR OF THE UNACCOUNTABLY BESTSELLING NONFICTION BOOK ITALIAN NEIGHBORS PROOF THAT SCADS OF READERS DO WANT TO KNOW WHAT TIMES OF DAY REAL ITALIANS RESERVE FOR DRINKING ESPRESSO AS DISTINCT FROM CAPPUCCINO THE ENGLISHBORN EXPATRIATE HAS ALSO WRITTEN FIVE PREVIOUS NOVELS OF THE DISTINCTLY UNPLEASANT SORT CURRENTLY FASHIONABLE IN HIS NATIVE COUNTRY HIS LATEST ANTIHERO MORRIS DUCKWORTH IS A CLEANCUT CAMBRIDGEEDUCATED LOWERMIDDLECLASS ENGLISHMAN IN ITALY HUNGRY FOR THE FINER THINGS AND RESENTFUL OF HIS LOW STATUS AND INCOME AS TUTOR TO THE CHILDREN OF RICH ITALIANS DUCKWORTH SETS HIS MATRIMONIAL SIGHTS ON THE DIMWITTED PRETTY DAUGHTER OF A WEALTHY FAMILY BUT DESPITE HIS SLICK EFFORTS THE FAMILY DISAPPROVES WHEN THE GIRL PROPOSES TO ELOPE THE WORSETHANCADDISH DUCKWORTH HAS THE BRIGHT IDEA OF SENDING HER FAMILY A RANSOM NOTE THE ENSUING COMPLICATIONS ARE MEANT TO CONSTITUTE A DROLL YET HORRIFYING ESCAPADE IN AMORALITY OR MAYBE A SATIRE OF IT BUT MR PARKS HAS EVEN LESS TO TELL US ABOUT VALUEFREE YOUTH THAN HIS AMERICAN COUNTERPART BRET EASTON ELLIS AND HIS PROSE STYLE PROVES AS ANEMIC AND UNINVENTIVE AS HIS PLOT AND CHARACTERIZATION 9304260062 930426 BUSINESS BRIEF WORTHEN BANKING CORP ACQUISITION OF BANK FIRM FOR 14 MILLION IS PLANNED WORTHEN BANKING CORP CONTINUING ITS EXPANSION INTO NORTHWEST ARKANSAS SAID IT AGREED TO ACQUIRE FIRST BENTONVILLE BANCSHARES INC FOR ABOUT 14 MILLION THE LITTLE ROCK ARK BANK HOLDING COMPANY SAID THE PURCHASE PRICE INCLUDES ABOUT 5 MILLION IN CASH ABOUT 4 MILLION OF DEBT REPAYMENT AND ABOUT 5 MILLION IN THE FORM OF 250000 NEWLY ISSUED WORTHEN COMMON SHARES THE FINAL PRICE WILL FOLLOW A FORMULA BASED ON THE BOOK VALUE OF BOTH COMPANIES AT THE TIME OF CLOSING WORTHEN'S STOCK CLOSED AT 25375 DOWN 50 CENTS IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING FRIDAY THE ACQUISITION IS EXPECTED TO BE COMPLETED IN LATE 1993 PENDING APPROVAL FROM REGULATORS AND FIRST BENTONVILLE BANCSHARES' SHAREHOLDERS WORTHEN SAID FIRST BENTONVILLE BANCSHARES IS THE PARENT COMPANY OF FIRST BANK OF BENTONVILLE WHICH WORTHEN SAID EARNED 965000 IN 1992 ON ABOUT 86 MILLION AVERAGE ASSETS 9304260061 930426 BUSINESS BRIEF STUDENT LOAN CORP FIRSTQUARTER PROFIT SOARED 71 ON LOW INTEREST RATES STUDENT LOAN CORP PITTSFORD NY SAID FIRSTQUARTER NET INCOME JUMPED 71 REFLECTING AN INCREASE IN THE COMPANY'S STUDENTLOAN PORTFOLIO AND LOW FUNDING COSTS DUE TO LOW INTEREST RATES THE COMPANY A MAJOR ORIGINATOR AND HOLDER OF INSURED STUDENT LOANS SAID NET INCOME WAS 171 MILLION OR 86 CENTS A SHARE COMPARED WITH 10 MILLION OR 50 CENTS A SHARE A YEAR EARLIER CITIBANK A SUBSIDIARY OF CITICORP HOLDS AN 80 STAKE IN STUDENT LOAN CORP CORE EARNINGS WHICH EXCLUDE THE BENEFIT OF FLOOR INTEREST RATES ON LOANS IN THE COMPANY'S PORTFOLIO ROSE 26 TO 106 MILLION FROM 84 MILLION FLOOR INCOME ATTRIBUTABLE TO THE FIXED MINIMUM RATES ON CERTAIN LOANS IN THE COMPANY'S PORTFOLIO ACCOUNTED FOR 65 MILLION OR 33 CENTS A SHARE COMPARED WITH 16 MILLION OR EIGHT CENTS A SHARE THE YEAR BEFORE THE COMPANY SAID THE IMPACT OF FIXED MINIMUM RATES ON ITS INTEREST EARNINGS WILL EASE IN THE FUTURE 9304260060 930426 INTERNATIONAL BRIEF SOCIETE GENERALE DE BELGIQUE FIRM INCREASES ITS HOLDING IN GENERALE DE BANQUE TO 26 BELGIAN HOLDING COMPANY SOCIETE GENERALE DE BELGIQUE INCREASED ITS STAKE IN BANKING FIRM GENERALE DE BANQUE TO 26 FROM 21 BY ACQUIRING SHARES FROM BELGIANDUTCH INSURER FORTIS SGB SAID IT BOUGHT 725000 GENERALE DE BANQUE SHARES FROM FORTIS THOUGH THE PRICE WASN'T DISCLOSED SGB SAID IT WAS BELOW RECENT QUOTES ON THE BRUSSELS STOCK EXCHANGE IN A SEPARATE STATEMENT GENERALE DE BANQUE SAID THAT FORTIS ALSO SOLD OTHER SHARES TO VARIOUS INSTITUTIONAL INVESTORS THE SHARE SALES BY FORTIS WILL REDUCE ITS STAKE IN GENERALE DE BANQUE TO 177 FROM ABOUT 14 FORTIS IS A JOINT VENTURE BETWEEN BELGIAN INSURER GROUPE AG AND AMEV NV OF THE NETHERLANDS 9304260059 930426 BUYOUT BLUES KKR'S LUSTER DIMS AS FALL IN RJR STOCK HURTS INVESTORS' TAKE SOME FACE RETURNS NO BETTER THAN THE S&P 500 IN SPITE OF FEES RISKS ILLIQUIDITY KRAVIS NOT LOSING ANY SLEEP BY RANDALL SMITH AND EBEN SHAPIRO STAFF REPORTERS OF THE WALL STREET JOURNAL THE RECORD 25 BILLION BUYOUT OF RJR NABISCO MADE A CELEBRITY OUT OF DEAL MAKER HENRY KRAVIS BUT THE TRANSACTION ONCE REGARDED AS MR KRAVIS'S GREATEST TRIUMPH NOW IS BEING TARNISHED BY TROUBLES IN THE TOBACCO BUSINESS THAT ARE PARING THE INVESTMENT RETURNS OF HIS LEVERAGEDBUYOUT FIRM KOHLBERG KRAVIS ROBERTS & CO FOUR YEARS AFTER THE BUYOUT CLOSED RJR NABISCO HOLDINGS CORP IS FACING A DIFFICULT SITUATION A THREATENED SIN TAX ON TOBACCO TO PAY FOR PRESIDENT CLINTON'S HEALTHCARE PROGRAM A LOOMING CIGARETTE PRICE WAR SPARKED BY RIVAL PHILIP MORRIS COS AND THE LOSS OF CHAIRMAN LOUIS V GERSTNER JR TO INTERNATIONAL BUSINESS MACHINES CORP HAVE THROWN A CLOUD OVER THE RJ REYNOLDS TOBACCO BUSINESS IN THE PAST TWO MONTHS RJR'S STOCK PRICE HAS TUMBLED 36 ALL BUT ERASING THE PAPER PROFIT THAT KKR AND ITS POOL OF PENSIONFUND INVESTORS HAD ON THE 1989 BUYOUT IT CLOSED FRIDAY AT 575 COMPARED WITH A 52WEEK HIGH OF 10375 ON WEDNESDAY KKR PARTNER GEORGE ROBERTS APPEARED IN OLYMPIA WASH BEFORE THE WASHINGTON STATE INVESTMENT BOARD KKR'S SECONDLARGEST INVESTOR MR ROBERTS CANDIDLY WARNED THAT THE TOBACCO WAR ISN'T LIKELY TO END SOON HE SAID RETURNS ON THE RJR INVESTMENT AREN'T GOING TO BE WHAT WE HAD HOPED AT THE TIME OF THE ORIGINAL BUYOUT AT THIS RATE HE SAID KKR'S INVESTORS WON'T BE HAPPY WITH THE ULTIMATE RETURN BUT WILL STILL GET SOME VALUE FROM THEIR INVESTMENT A SPOKESWOMAN LATER ADDED THAT INVESTORS WON'T BE UNHAPPY EITHER AND THAT THE RETURNS SHOULD BE ACCEPTABLE SOME ARE ALREADY UNHAPPY CHUCK HUNTER A SENIOR PORTFOLIO MANAGER WITH THE MONTANA INVESTMENT BOARD ANOTHER KKR INVESTOR CALLS THE RETURNS DISAPPOINTING HE PREDICTS THERE'S GOING TO BE A LOT OF HEAT AT KKR'S ANNUAL INVESTORS' CONFERENCE NEXT MONTH IN SAN FRANCISCO FOR KKR EXECUTIVES THE BIG PROBLEM IS THE RJR BUYOUT ISN'T JUST THEIR BESTKNOWN DEAL IT ALSO IS BY FAR THEIR LARGEST KKR INITIALLY PUMPED 136 BILLION IN EQUITY FROM ITS INVESTMENT POOL INTO THE LEVERAGED BUYOUT THEN SPENT 17 BILLION MORE A YEAR LATER AS PART OF A HUGE REFINANCING TO AVERT A FINANCIAL MELTDOWN CAUSED BY PROBLEM JUNK BONDS THAT 306 BILLION TOTAL INVESTMENT REPRESENTS 53 OF KKR'S BIGGEST BUYOUT FUND A 56 BILLION POOL FORMED IN 1987 AND THE TOTAL INVESTMENT REPRESENTS 39 OF EVERY BUYOUTFUND DOLLAR EVER INVESTED BY KKR SINCE 1976 UNFORTUNATELY THE BIGGEST PIECE OF THE FUND HAS DONE THE MOST POORLY SAYS MONTANA'S MR HUNTER AND THAT'S VERY TROUBLESOME MANY OF KKR'S LOYAL INVESTORS SAY THEY STILL HAVE CONFIDENCE IN THE FIRM AND THAT LONGTERM INVESTMENTS LIKE RJR CAN'T BE JUDGED FAIRLY UNTIL THEY HAVE BEEN SOLD WE'RE TAKING A DIP HERE IT'S UNFORTUNATE BUT WE HAVE A LONGTERM PERSPECTIVE SAYS JAY FEWEL AN INVESTMENT OFFICER AT THE OREGON PUBLIC EMPLOYEES RETIREMENT FUND KKR'S LARGEST INVESTOR MR KRAVIS DISPLAYS NO SIGNS OF ALARM OVER RJR HE SAYS NO ONE AT KKR IS LOSING ANY SLEEP OVER THIS WE HAVE MANAGEMENT THAT WORKS ON ADVERTISING PRICING AND THE LIKE WE HAVE COMPLETE CONFIDENCE IN COCHIEF EXECUTIVES LAWRENCE R RICCIARDI AND KARL VON DER HEYDEN AND OUR FIRSTRATE OPERATING MANAGEMENT TEAM PETER G PETERSON CHAIRMAN OF THE WALL STREET FIRM BLACKSTONE GROUP PLAYED GOLF WITH MR KRAVIS ON EASTER SUNDAY HAD I NOT KNOWN THAT THERE WAS A SERIOUS PROBLEM THERE WAS NO EXTERNAL EVIDENCE THAT THERE WAS ANYTHING BOTHERING HIM THE RJR TRANSACTION ALREADY HAS MADE A BIG DENT IN KKR'S RETURNS COMPARED WITH INVESTMENT FUNDS IT RAISED EARLIER ON A 315 MILLION FUND RAISED IN 1982 KKR SAYS IT HAS PRODUCED EYEPOPPING RETURNS OF 41 A YEAR BEFORE SUBTRACTING A 15 ANNUAL MANAGEMENT FEE IT SAYS IT HAS PRODUCED 32 ANNUAL RETURNS ON A 1 BILLION FUND RAISED IN 1984 AND 21 ON A 670 MILLION FUND RAISED IN 1986 IN ITS REPORT TO THE WASHINGTON BOARD KKR SAID COMPOUNDED ANNUAL RETURNS ON THE 1987 FUNDTHE ONE INVESTED HEAVILY IN RJRWERE 18 AS OF THE END OF 1992 ACCORDING TO BRINSON PARTNERS INC A CHICAGO CONSULTANT THE 1987 FUND'S PERFORMANCE APPEARS TO BE NO BETTER THAN THAT OF THE STOCK MARKET AS A WHOLE OVER THIS PERIOD AFTER DEDUCTING MANAGEMENT FEES IF KKR CAN'T BEAT THE STOCKMARKET AVERAGES WITH ITS BIGGEST FUND THAT COULD HURT ITS ABILITY TO RAISE NEW FUNDS INVESTORS HAVE LITTLE LIQUIDITY AND KKR CHARGES SOME OF THE HIGHEST FEES IN THE BUYOUT BUSINESS MR ROBERTS TOLD THE WASHINGTON BOARD THAT IF THEY WEREN'T SATISFIED WITH THE INVESTMENT RETURNS THE NEXT TIME KKR ASKS FOR MORE MONEY THE STICK THAT YOU HAVE OVER US IS WE PERFORM OTHERWISE YOU WON'T FUND US KKR BECAME THE BIGGEST BUYOUT FIRM ON WALL STREET BY STARTING EARLY IN 1976 AND ASSEMBLING A MODERATESIZED BUYOUT PORTFOLIO BEFORE INTEREST RATES PLUNGED AND THE ENTIRE STOCK MARKET SOARED STARTING IN MID1982 FROM A 355 MILLION BUYOUT OF HOUDAILLE INDUSTRIES INC IN 1979 THE FIRM DID BIGGER AND BIGGER DEALS THROUGH THE 1980S STORER COMMUNICATIONS INC FOR 25 BILLION IN 1985 BEATRICE COS FOR 62 BILLION IN 1986 AND RJR IN 1989 MR ROBERTS CLAIMS THAT OVER THE PAST FIVE YEARS KKR HAS RAISED MORE THAN 80 BILLION IN CAPITAL AND HAS MADE MORE ACQUISITIONS THAN ANYONE ELSE WE'RE THE BIGGEST PROVIDERS OF FEES TO WALL STREET HE SAYS NOR ARE THE KKR PARTNERS LIKELY TO GO HUNGRY ANYTIME SOON THEY STILL HAVE 18 BILLION YET TO BE INVESTED IN A FUND THAT WAS FORMED ONLY LAST YEAR ANNUAL MANAGEMENT FEES ON THAT TOTAL 27 MILLION BY THE TIME KKR SEEKS TO RAISE MORE FUNDS IN A FEW YEARS RJR MAY HAVE BOUNCED BACK OR INVESTORS MAY DECIDE THE POTENTIAL REWARDS ARE STILL WORTH THE RISKS THE DEALMAKING JUGGERNAUT CULMINATED IN THE MONUMENTAL RJR TAKEOVER BATTLE IN LATE 1988 KKR BESTED A TEAM LED BY RJR'S THENCHIEF EXECUTIVE ROSS JOHNSON IN A STRUGGLE THAT FOR MANY SYMBOLIZED THE MERGER MANIA AND GREED OF THE 1980S IT PRODUCED A BESTSELLING BOOK BARBARIANS AT THE GATE BY TWO WALL STREET JOURNAL REPORTERS BRYAN BURROUGH AND JOHN HELYAR IN THE TVMOVIE VERSION OF THE BOOK THAT WAS SHOWN LAST MONTH THE URBANE ACTOR JONATHAN PRYCE PORTRAYED MR KRAVIS AS AN ICECOOL DEAL MAKER BUT MANY ACCOUNTS SUGGESTED THAT MR KRAVIS A HIGHLIVING MEMBER OF MANHATTAN SOCIETY PAID A HUGE PREMIUM FOR RJR PARTLY TO MAINTAIN HIS STATUS AS KING OF THE BUYOUT BUSINESS KKR DISPUTES THAT ANTHONY KARAKAS PRESIDENT OF MARCUS DISTRIBUTORS INC A BIG ST LOUIS CIGARETTE WHOLESALER SAYS KKR PAID THE PREMIUM PRICE FOR RJR JUST AS THE TOBACCO INDUSTRY WAS UNDERGOING A WRENCHING SHIFT IN FAVOR OF CHEAPER DISCOUNT CIGARETTES THEY THOUGHT THIS WAS A BIG FAT CASH COW AND THEY COULD AFFORD TO OVERPAY HE SAYS THEY WERE JUST A LITTLE BIT TOO LATE DESPITE A 1990 BRUSH WITH JUNKBOND DISASTER IT APPEARED THAT THE BUYOUT WAS A HOME RUN ONLY TWO YEARS AGO KKR TOOK RJR PUBLIC AGAIN IN 1991 THE STOCK MORE THAN DOUBLED FROM THE 563ASHARE PRICE KKR'S INVESTORS PAID AND RJR REGAINED AN INVESTMENTGRADE RATING BY CUTTING ITS DEBT LOAD NEARLY IN HALF TO ABOUT 14 BILLION BUT SINCE THEN THE STOCK HAS GONE STEADILY DOWNHILL AS THE TOBACCO BUSINESS HAS DETERIORATED THIS YEAR RJR HAS SUFFERED A RELENTLESS SERIES OF BLOWS MOST NOTABLY PHILIP MORRIS'S CUT IN THE PRICE OF ITS PREMIUM MARLBORO BRAND THE MARLBORO MOVE SHOCKED KKR AND RJR MANAGEMENT ESPECIALLY SINCE PHILIP MORRIS ANNOUNCED IT ON THE DAY OF RJR'S ANNUAL MEETING IN WILMINGTON DEL IT WAS THE FIRST TIME RJR'S NEW COCHIEF EXECUTIVES MESSRS RICCIARDI AND VON DER HEYDEN HAD ADDRESSED SHAREHOLDERS IN THEIR NEW ROLES THEY WERE LEFT FIELDING QUESTIONS WITH LIMITED INFORMATION THE PHILIP MORRIS ANNOUNCEMENT ALSO CAME AS RJR WAS IN THE MIDST OF A 15 BILLION STOCK OFFERING TIED TO RJR'S NABISCO FOOD BUSINESS DESPITE THE SUSPICIONS OF SOME AT RJR PHILIP MORRIS DENIED THAT THE TIMING HAD ANYTHING TO DO WITH RJR KKR EXECUTIVES ARE SAID TO HOPE A PRICE WAR WOULD LAST ONLY A FEW MONTHS BUT MR ROBERTS SEEMS MORE PESSIMISTIC THE BOTTOM LINE IS THAT FOR THE FORESEEABLE FUTURE THERE'S GOING TO BE A PRICE WAR IN THE TOBACCO INDUSTRY AND I DON'T BELIEVE IT WILL BE A SHORTTERM PHENOMENON ANALYSTS HAVE SLASHED EARNINGS ESTIMATES FOR RJR DIANA K TEMPLE OF SALOMON BROTHERS CUT HER 1993 ESTIMATE BY MORE THAN 30 TO 49 CENTS A SHARE SHE ESTIMATES THE NEED TO MATCH THE MARLBORO PRICE CUTS COULD COST RJR 600 MILLION IN PRETAX PROFIT THIS YEAR LAST YEAR RJR POSTED OPERATING INCOME OF 289 BILLION APPARENTLY TO CONSERVE FUNDS RJR ON APRIL 13 ELIMINATED PLANS TO START PAYING A DIVIDEND ON ITS TOBACCO STOCK ONCE THE FOOD SHARES ARE ISSUED RJR HAS GOOD REASON TO FEAR MARLBORO FLEXING ITS MUSCLES LAST YEAR RJ REYNOLDS'S OPERATING PROFIT FROM DOMESTIC TOBACCO WAS 2 BILLION EXACTLY THE SAME AMOUNT THAT MUCHBIGGER PHILIP MORRIS SAID IT WAS READY TO FORGO TO SHORE UP MARLBOROS NABISCO'S BRANDS SUCH AS OREO COOKIES LIFESAVERS CANDIES PLANTERS NUTS GREY POUPON MUSTARD AND MILKBONE PET SNACKS DON'T INCLUDE ANY PRODUCTS SHOWING SIZZLING GROWTH AND SUCH BRANDS ARE VULNERABLE TO PRIVATELABEL SALES PRIVATELABEL COOKIE SALES GREW LAST YEAR BY NEARLY 10 WHILE OREO SALES FELL BY MORE THAN 7 LAST YEAR ACCORDING TO NIELSEN MARKETING RESEARCH FOR THE PAST TWO YEARS SALES IN NABISCO'S NORTH AMERICAN GROUP HAVE BEEN FLAT OR UP ONLY SLIGHTLY PROFIT ROSE 5 PERCENT IN THE GROUP LAST YEAR THE COMPANY BLAMES RESTRAINED CONSUMER SPENDING ANOTHER DRAWBACK IS NABISCO'S SCANT EUROPEAN EXPOSURE WHILE OTHER COMPANIES ARE SCURRYING TO ACQUIRE OVERSEAS FOOD BUSINESSES RJR SOLD FIVE EUROPEAN FOOD BUSINESSES IN 1990 TO REDUCE DEBT DESPITE THE DRAG OF A MINUSCULE RETURN ON RJR KKR'S 1987 FUND IS MATCHING THE STOCK MARKET BECAUSE SEVERAL OTHER INVESTMENTS STOP & SHOP COS DURACELL INTERNATIONAL CO AND AMERICAN RE CORP ALL ARE TRADING AT THREE TO SIX TIMES THEIR COST TO KKR SINCE RETURNING TO PUBLIC HANDS IN THE CURRENT BUOYANT STOCK MARKET MR ROBERTS TOLD THE WASHINGTON STATE INVESTORS THAT THIS YEAR'S 15 BILLION DROP IN THE MARKET VALUE OF KKR PARTNERSHIPS' 49 STAKE IN RJR WAS PARTLY OFFSET BY PROFIT ON THE AMERICAN RE TRANSACTION LAST FALL IN THAT DEAL KKR BOUGHT A REINSURANCE BUSINESS FROM AETNA LIFE & CASUALTY CO JUST BEFORE INSURANCE STOCKS SOARED AND NEARLY QUADRUPLED THE VALUE OF ITS 300 MILLION EQUITY STAKE IN SHORT ORDER STILL A TINY RETURN ON RJR CUTS THE PERCENTAGE RETURN ON THE REST OF THE PORTFOLIO IN HALF WHEN ITS RETURNS WERE 30 AND 40 ANNUALLY KKR COULD IGNORE ANY GRIPES ABOUT HIGH FEES BUT MAYBE NOT AT RETURNS OF 15 TO 18 KKR COLLECTED A 75 MILLION INVESTMENTBANKING FEE ON THE RJR TRANSACTION AND COLLECTS AN ANNUAL MANAGEMENT FEE OF 15 ON ANY UNINVESTED FUNDS FOR AS LONG AS SIX YEARS AFTER THE 1987 FUND WAS FIRST RAISED THAT FEE TOPPED 75 MILLION A KKR SPOKESWOMAN SAYS KKR EXECUTIVES ALSO RISKED 120 MILLION OF THEIR OWN MONEY ON RJR KKR ALSO HAS A MORE FAVORABLE SHAREOFPROFITS STRUCTURE THAN MOST OTHER FUNDS KKR GETS 20 OF THE PROFITS ON ANY INDIVIDUAL INVESTMENT BUT DOESN'T ABSORB 20 OF ANY LOSSES OTHER BUYOUTFUND SPONSORS HAVE TO PROMISE INVESTORS A MINIMUM RATE OF RETURN SAY 9 BEFORE THE SPONSOR GETS HIS 20 SHARE OF THE PROFITS UNLIKE KKR MOST OTHER FUNDS ALSO HAVE TO AGGREGATE THEIR PROFIT CALCULATIONS WHICH CAN REDUCE THEIR FEES LET'S SAY A BUYOUT FUND HAS TWO DEALS ONE MAKES A 1 BILLION PROFIT WHEN SOLD THE OTHER HAS A 1 BILLION LOSS MOST FUND SPONSORS WOULDN'T GET A SHARE OF THE PROFIT FROM THE FIRST DEAL BECAUSE THE SECOND TRANSACTION CANCELS IT OUT BUT KKR WOULD GET TO KEEP 200 MILLION OF THE FIRST TRANSACTION'S PROFIT SUCH FEE CONSIDERATIONS PROMPTED SOME EARLY KKR INVESTORS TO QUIT PARTICIPATING IN KKR FUNDS YALE UNIVERSITY WHICH INVESTED IN THE 1982 AND 1984 FUNDS DROPPED OUT IN 1986 UNLIKE SOME OTHER WALL STREET FINANCIERS MR KRAVIS WHOSE PERSONAL NET WORTH HAS BEEN ESTIMATED AT 500 MILLION BY FORBES MAGAZINE HAS NEVER BOTHERED TO HIDE HOW HE SPENDS ALL THAT MONEY NOR HAS HE SHED HIS 1980S EXTRAVAGANCE OR HIGH PROFILE OVER EASTER WEEKEND HE FLEW A GROUP OF NEW YORK CELEBRITY FRIENDS IN HIS PRIVATE FALCON JET TO HIS NEW 10 MILLION BEACHFRONT HOME IN THE CASA DEL CAMPO ENCLAVE OF THE DOMINICAN REPUBLIC MR KRAVIS MAINTAINS SIX HOMES INCLUDING RESIDENCES ON PARK AVENUE IN MANHATTAN IN SOUTHAMPTON NY IN SHARON CONN A VAIL COLO SKI LODGE AND A RANCH ELSEWHERE IN COLORADO THE STYLE IN WHICH HE LIVES IS QUITE DRAMATIC SAYS MORTON JANKLOW THE LITERARY AGENT BUT IN THIS ENVIRONMENT OF DIMINISHED RETURNS SOME OF RJR'S BIG INVESTORS ARE ASKING QUESTIONS THAT NEVER OCCURRED TO THEM BEFORE ON THE DAY MR ROBERTS BRIEFED THE WASHINGTON INVESTMENT BOARD TWO BOARD MEMBERS RAISED QUESTIONS DURING THE MEETING ABOUT HOW KKR CALCULATES AND PRESENTS ITS RETURNS ONE BOARD MEMBER ASKED WHY KKR'S STATED RETURNS EXCEEDED THE RETURNS AS CALCULATED BY BRINSON THE STATE'S NEWLY HIRED OUTSIDE CONSULTANT TWO REASONS WERE THAT KKR HADN'T SUBTRACTED ITS 15 ANNUAL MANAGEMENT FEES AND DIDN'T INCLUDE THE INVESTMENT RESULTS OF LOWERYIELDING TEMPORARY BRIDGE LOANS MADE WITH INVESTORS' FUNDS TO COMPLETE TAKEOVERS ANOTHER BOARD MEMBER CHARLES KAMINSKI ASKED HOW KKR'S RESULTS COMPARED WITH THOSE OF THE US STOCK MARKET WHICH HAVE MORE THAN TRIPLED SINCE 1982 KKR'S OWN DATA COMPARED THE RETURNS TO FIXEDRATE RETURNS OF 8 10 AND 12 A SPOKESMAN LATER EXPLAINED THAT THIS WAS BECAUSE THOSE ARE COMMON PENSIONFUND RETURN BAROMETERS WE DON'T KNOW MR ROBERTS RESPONDED AFTERWARD HE TOLD A REPORTER WE JUST DON'T DO THAT ASKED WHY KKR NEVER DID SUCH BASIC CALCULATIONS BEFORE A KKR SPOKESWOMAN REPLIED THEY DON'T CONSIDER THEMSELVES LIKE OTHER MONEY MANAGERS BECAUSE KKR DOESN'T MANAGE PUBLICLY TRADED STOCKS AND BONDS BUYOUTS ARE A DIFFERENT FORM OF INVESTMENT SHE ADDED LATE LAST WEEK KKR DID SUPPLY SOME COMPARATIVE STOCKMARKET DATA THE ANSWER TO MR KAMINSKI'S QUESTION IS THAT BY BRINSON'S CALCULATIONS THE 1987 FUND HAS SLIGHTLY TRAILED THE STANDARD & POOR'S 500STOCK INDEX FOR THE PERIOD AFTER SUBTRACTING THE FEES AND COUNTING BRIDGE LOANS AND OTHER INTERIM INVESTMENTSWHICH KKR DOESN'T BRINSON SAID THE 1987 FUND HAS RETURNED 151 ANNUALLY THROUGH THE END OF 1992 IN THE SAME PERIOD THE S&P HAD A COMPOUNDED RATE OF 159 ACCORDING TO MORNINGSTAR INC KKR SAYS IT DOESN'T COUNT BRIDGELOAN RETURNS BECAUSE THEY ARE A DIFFERENT TYPE OF INVESTMENT A KKR SPOKESMAN SAYS THE FUND'S RETURN AS CALCULATED BY BRINSON TRAILS THE S&P 500 PARTLY BECAUSE KKR APPRAISES THE PORTFOLIO CONSERVATIVELY PUBLICLY TRADED STOCK IS VALUED AT A 10 DISCOUNT TO MARKET VALUE THE FUND STILL ISN'T FULLY INVESTED WHICH HOLDS DOWN RETURNS AND 655 MILLION OF INVESTMENTS ARE VALUED AT COST WHEN THEIR ACTUAL VALUE MAY BE HIGHER KKR EXECUTIVES SAY THEY AREN'T TAKING A MORE ACTIVE ROLE IN RJR'S MANAGEMENT THEIR ONLY OVERT STEP HAS BEEN TO PRESS AHEAD WITH PLANS FOR THE FOODSTOCK OFFERING DESPITE THE TUMULTUOUS ENVIRONMENT SOME OF MR KRAVIS'S ASSOCIATES BELIEVE KKR WILL TRY TO FIND A STRONG SUCCESSOR TO MR GERSTNER RATHER THAN ALLOWING A LAWYER AND FINANCIAL SPECIALIST TO CONTINUE IN CHARGE AND WITH ITS PERFORMANCE UNDER PRESSURE FOR THE FIRST TIME KKR HAS MOUNTED AN INVESTORRELATIONS INITIATIVE A NEW MAGAZINE TITLED KKR REVIEW WHICH INCLUDES FAVORABLE ARTICLES ABOUT KKR'S COMPANIES PEOPLE AND ENVIRONMENTAL POLICIES IN AN OPENING PIECE MESSRS KRAVIS AND ROBERTS SAY WHILE WE KNOW OUR INVESTORS WILL JUDGE US FIRST ON OUR FINANCIAL SUCCESS AND RIGHTLY SO WE BELIEVE THE PEOPLE PRODUCTS AND SERVICES FOUND WITHIN OUR PORTFOLIO OF BUSINESSES ARE IMPORTANT TO RECOGNIZE BECAUSE THEY ARE KEY TO THE SUCCESS OF OUR INVESTMENTS WE ARE PUBLISHING KKR REVIEW FOR OUR INVESTING PARTNERS SO YOU TOO HAVE AN OPPORTUNITY TO KNOW MORE THAN THE BOTTOM LINE 9304260058 930426 DIVIDEND BRIEF TEKTRONIX INC VENTURE WITH SONY IS SET TO PAY ONETIME DIVIDEND TEKTRONIX INC SAID IT WILL SHARE A ONETIME DIVIDEND OF ABOUT 62 MILLION WITH SONY CORP THE DIVIDEND WAS DECLARED BY DIRECTORS OF THE SONY/TEKTRONIX CORP AT A MEETING IN TOKYO SONY/TEKTRONIX CORP A JOINT VENTURE FOUNDED IN 1965 DISTRIBUTES TEKTRONIX PRODUCTS IN JAPAN AND MANUFACTURES OTHER PRODUCTS SOLD WORLDWIDE TEKTRONIX BASED IN WILSONVILLE ORE SAID THE SUCCESS OF THE VENTURE RESULTED IN AN ACCUMULATION OF CASH PROMPTING THE DIVIDEND TEKTRONIX RECEIVED A SIMILAR DIVIDEND OF 23 MILLION FROM THE JOINT VENTURE IN 1990 TEKTRONIX A MAKER OF ELECTRONICS PRODUCTS SAID IT DOESN'T EXPECT THE ESTIMATED 31 MILLION DIVIDEND PAYMENT TO AFFECT EARNINGS BECAUSE OF THE WAY IT ACCOUNTS FOR ITS OWNERSHIP IN THE JOINT VENTURE 9304260057 930426 POLITICS & POLICY BUREAU OF ALCOHOL TOBACCO AND FIREARMS GAINS NEW ATTENTION FOLLOWING WACO TEXAS DISASTER BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN THE WAKE OF THE BRANCH DAVIDIAN DISASTER OUTSIDE WACO TEXAS THE HARSHEST SPOTLIGHT HAS BEEN AIMED AT THE FEDERAL BUREAU OF INVESTIGATION AND ITS PARENT THE JUSTICE DEPARTMENT BUT AS CONGRESSIONAL COMMITTEES AND A PRESIDENTIAL PANEL BEGIN OFFICIAL INQUIRIES THE SECONDGUESSING IS ABOUT TO REFOCUS ON THE BUREAU OF ALCOHOL TOBACCO AND FIREARMS THE TREASURY DEPARTMENT AGENCY WHOSE RAID ON THE CULT'S COMPOUND RESULTED IN THE DEATHS OF FOUR OF ITS AGENTS AND STARTED THE 51DAY STANDOFF SOME OF THE MOST POINTED QUESTIONS COULD COME TODAY DURING THE CONFIRMATION HEARING FOR RONALD K NOBLE TO BECOME ASSISTANT TREASURY SECRETARY FOR ENFORCEMENT IN CHARGE NOT ONLY OF ATF BUT ALSO OF TWO MORE READILY RECOGNIZABLE AGENCIES THE SECRET SERVICE AND THE CUSTOMS SERVICE AS NOMINEE MR NOBLE WAS PRIVY TO THE PLANS FOR THE FEB 28 RAID HIS CONFIRMATION HEARING WAS SPECIALLY SCHEDULED SO HE COULD BE OFFICIALLY TAPPED BY TREASURY SECRETARY LLOYD BENTSEN TO LEAD TREASURY'S INVESTIGATION OF ATF'S PERFORMANCE IN THE BRANCH DAVIDIAN CASE A PROBE THAT IS EXPECTED TO TAKE SEVERAL MONTHS THE ATTENTION WILL SURELY RENEW QUESTIONS ABOUT JUST WHAT THE ATF'S 2700 AGENTS DO AND WHETHER THE AGENCY EVEN NEEDS TO EXIST EXCEPT IN ITS SLIM AREA OF EXPERTISE IN FIREARMS EXPLOSIVES AND ARSONS MOST OF THE BUREAU'S FUNCTIONS OVERLAP AND RESEMBLE THOSE OF OTHER FEDERAL AGENCIES AND THOSE FUNCTIONS ARE BY ANY ESTIMATION A CRAZY QUILT WHILE FBI AGENTS WERE RAMMING ARMORED ASSAULT VEHICLES INTO THE BRANCH DAVIDIAN COMPOUND LAST MONDAY ATF WAS ISSUING A NEWS RELEASE FROM ITS WASHINGTON HEADQUARTERS ANNOUNCING THAT IT HAD PROPOSED THE USE OF A LABEL STATEMENT THAT TELLS CONSUMERS WHEN THE ARTIFICAL SWEETENER ASPARTAME IS IN MALT BEVERAGES IN ADDITION TO MALTLIQUOR LABELING THE ATF IS RESPONSIBLE FOR COLLECTING TAXES ON TOBACCO CHECKING IMPORTED BRANDIES FOR CONTAMINANTS TRACING DANGEROUS FIRECRACKERS AND SHUTTING DOWN ILLEGAL STILLS IT HAS DISPATCHED AGENTS TO SOLVE ABORTIONCLINIC BOMBINGS TO BUST VINTNERS WHO ILLEGALLY PEDDLE THEIR PRODUCT AT WINETASTINGS AND TO INVESTIGATE RUMORS THAT HANGGLIDING IRANIAN TERRORISTS INTENDED TO DROP EXPLOSIVES ON THE REPUBLICAN NATIONAL CONVENTION IN DALLAS IN 1984 IN THE MIDST OF ALL THAT ATF HAS MAINTAINED EXCLUSIVE DOMINION OVER FEDERAL FIREARMS LAWS AN ASSIGNMENT THAT ALMOST BROUGHT ABOUT ITS DEMISE WHEN PRESIDENT REAGAN PROMISED HIS PROGUN SUPPORTERS IN 1981 THAT HE WOULD ABOLISH THAT ROGUE AGENCY FIREARMS JURISDICTION HAS ALSO PLACED ATF IN MORE CONFRONTATIONS WITH FANATICAL RELIGIOUS GROUPS THAN ANY OTHER FEDERAL LAWENFORCEMENT AGENCY STANDOFFS AREN'T UNUSUAL FOR THE AGENCY THE POLYGAMOUS SINGER FAMILY IN UTAH HELD OFF A 100MEMBER FORCE FOR 13 DAYS IN 1988 AND A GROUP KNOWN AS THE COVENANT THE SWORD AND THE ARM OF THE LORD HELD AGENTS AT BAY IN THE OZARKS OF NORTHERN ARKANSAS FOR FOUR DAYS IN 1985 THE ARKANSAS CASE WHICH OCCURRED WHILE BILL CLINTON WAS GOVERNOR HAD SOME PARALLELS TO THE TEXAS SITUATION AS IN WACO ATF AGENTS WERE ATTEMPTING TO EXECUTE A SEARCH WARRANT WHEN THEY WERE MET WITH GUNFIRE THE LEADER ALLOWED SOME WOMEN AND CHILDREN TO LEAVE THEN HUNKERED DOWN WAITING FOR A SIGN FROM GOD AFTER FOUR DAYS THE GROUP SURRENDERED AND AGENTS FOUND A CACHE OF WEAPONS AND EXPLOSIVES INSIDE THE COMPOUND INCLUDING 35 MACHINE GUNS AND THREE ANTIAIRCRAFT ROCKETS THE FORMER SPOKESMAN FOR THE COVENANT THE SWORD AND THE ARM OF THE LORD CALLED ATF HEADQUARTERS IN WASHINGTON SHORTLY AFTER THE FOUR AGENTS WERE SHOT TO DEATH NEAR WACO HE EXPRESSED HIS SYMPATHY SAYS ATF SPOKESMAN JACK KILLORIN HE WANTED TO KNOW IF THERE WAS ANYTHING HE COULD DO WITH THE TEXAS SIEGE OVER THE ATF AND THE TREASURY DEPARTMENT NOW HAVE TO WORRY ABOUT THE MINDSET IN WASHINGTON MR NOBLE HAS ALREADY PRIVATELY MADE IT CLEAR THAT HE WON'T LET THE FBI SADDLE THE BUREAU WITH THE BLAME FOR THE DISASTER HE INTENDS TO EMPHASIZE THAT THE ATF'S INVOLVEMENT WITH THE BRANCH DAVIDIANS EFFECTIVELY ENDED FEB 28 WHEN AGENTS ATTEMPTED TO SERVE A SEARCH WARRANT FOR ILLEGAL MACHINE GUNS AND HAND GRENADES A TREASURY OFFICIAL SPEAKING ON CONDITION HE NOT BE NAMED SAYS THAT UNLIKE THE JUSTICE DEPARTMENT'S PUBLIC RELATIONS EFFORT AFTER THE FIRE ATF'S ABILITY TO GO PUBLIC HAS BEEN HAMPERED BY THE ONGOING CRIMINAL INVESTIGATION INTO THE DEATHS OF ITS FOUR AGENTS AND INTO WHO LEAKED WORD OF THE FEB 28 ASSAULT TO BRANCH DAVIDIAN LEADER DAVID KORESH THERE ARE COSTS TO KEEPING YOUR MOUTH CLOSED WHEN THE MEDIA IS DISCHARGING ITS DUTY HE SAYS WITH A FEW EXCEPTIONS THE BUREAU HAS NEVER HAD A HIGH PUBLIC PROFILE IT TRACES ITS ROOTS TO 1791 WHEN TREASURY SECRETARY ALEXANDER HAMILTON SOUGHT TO BOOST REVENUES FOR THE FLEDGLING US GOVERNMENT BY IMPOSING A TAX ON ANTIGUA RUM AND OTHER SPIRITS ATF AGENTS' PREDECESSORS WERE IN CHARGE OF COLLECTING THE TAX AND THAT DUTY EVOLVED INTO ENFORCEMENT OF MOST FEDERAL LIQUOR LAWS INCLUDING PROHIBITION THE ATF CLAIMS ELIOT NESS OF THE UNTOUCHABLES AS ONE OF ITS OWN THOUGH THE BUREAU'S HISTORY DOESN'T MENTION THAT MR NESS'S ARCHNEMESIS AL CAPONE WAS BAGGED BY THE INTERNAL REVENUE SERVICE ON INCOMETAX CHARGES WHILE ATF HEADQUARTERS IS DOTTED WITH FRAMED POSTERS OF THE 1987 MOVIE STARRING KEVIN COSTNER AS MR NESS THE IRS IS ABLE TO BRAG ON A RECRUITMENT POSTER THAT ONLY AN ACCOUNTANT COULD CATCH AL CAPONE MORE RECENTLY ATF SOLVED THE MAILBOMB MURDER OF ALABAMA FEDERAL JUDGE ROBERT S VANCE AND THE ARSON FIRE THAT KILLED 96 PEOPLE AT THE DUPONT PLAZA HOTEL IN SAN JUAN PUERTO RICO AND WITHIN DAYS OF THE WACO SHOOTOUT ATF INVESTIGATORS FOUND THE PIECES OF THE RENTED VAN THAT CARRIED THE BOMB INTO THE PARKING GARAGE OF THE WORLD TRADE CENTER A DISCOVERY THAT LED TO THE IDENTIFICATION OF THE FIRST SUSPECT IN THE BOMBING NOW ATF DIRECTOR STEPHEN HIGGINS SAYS HE SENSES THAT OTHER FEDERAL AGENCIES ARE CIRCLING IN HOPES OF PICKING UP A FEW NEW ROLES IF THE BUREAU DOESN'T SURVIVE THE POSTWACO INQUIRIES HE ACKNOWLEDGES SOME OF THE BUREAU'S DUTIES OVERLAP WITH OTHER AGENCIES BUT SAYS THERE'S STRENGTH IN DIVERSITY AND THAT THERE'S SOME HEALTHY COMPETITION GOING ON BUT THOMAS C KELLY A FORMER SENIOR OFFICIAL AT THE FBI AND THE DRUG ENFORCEMENT ADMINISTRATION DISAGREES WHILE HE SPEAKS HIGHLY OF MR HIGGINS MR KELLY ARGUES THAT IN LAW ENFORCEMENT COMPETITION IS A RIPOFF THERE ARE MILLIONS AND MILLIONS OF DOLLARS BEING WASTED COMPETITION CAN EVEN GET DANGEROUS AT THE SCENE OF A RECENT CRIME ATF AND FBI AGENTS PULLED GUNS ON EACH OTHER SINCE THE ABORTIVE ATTEMPT TO DO AWAY WITH THE ATF DURING THE REAGAN ADMINISTRATION THE BUREAU HAD GONE ABOUT ITS JOB QUIETLY AND WITH FEW COMPLAINTS MUCH OF THE CREDIT FOR THAT FROM BOTH INSIDE AND OUTSIDE THE AGENCY IS GIVEN TO MR HIGGINS'S LEADERSHIP AS DIRECTOR OVER THE PAST 10 YEARS BUT HE ACKNOWLEDGES THAT WACO COULD CHANGE THAT I'M TRYING TO GET DIRECTORS ON THE ENDANGEREDSPECIES LIST HE SAYS FEB 28 1993 ATF RAIDS BRANCH DAVIDIAN CULT IN WACO FOUR AGENTS ARE KILLED 16 WOUNDED IN RESULTING SHOOTOUT 9304260056 930426 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL HOME LOAN BANKS 100 MILLION OF NOTES DUE MAY 6 1996 PRICED TO FLOAT DAILY AT A SPREAD OF 272 PERCENTAGE POINTS BELOW THE PRIME RATE THE NOTES WHICH PAY INTEREST QUARTERLY BEGINNING AUG 6 ARE NONCALLABLE THE ISSUE WILL BE SOLD THROUGH GOLDMAN SACHS & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 400 MILLION OF MEDIUMTERM NOTES DUE APRIL 30 1998 PRICED INITIALLY AT PAR TO YIELD 52 ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR THREE YEARS THE NOTES WILL BE REOFFERED AT VARIOUS PRICES THROUGH GOLDMAN SACHS & CO THE ISSUE WAS PRICED AT A SPREAD OF 0195 PERCENTAGE POINT ABOVE THE TREASURY FIVEYEAR NOTE PITT NATIONAL BANK 200 MILLION OF BANK NOTES DUE APRIL 29 1994 PRICED INITIALLY AT PAR TO YIELD 323 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 01 PERCENTAGE POINT ABOVE THE TREASURY ONEYEAR BILL RATED DOUBLEA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO TIPHOOK FINANCE CORP 200 MILLION OF NOTES DUE MAY 1 1998 PRICED AS 7 1/8S AT 99688 TO YIELD 720 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 22 PERCENTAGE POINTS ABOVE THE TREASURY FIVEYEAR NOTE RATED BA1 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS TIPHOOK FINANCE IS A UNIT OF TIPHOOK PLC ARGENTARIA CORP BANCARIA DE ESPANA 28 MILLION SHARES OF ARGENTERIA SPAIN'S STATE BANKING GROUP PRICED IN A GLOBAL OFFERING AT 3800 PESETAS A SHARE KINGDOM OF NORWAY SOVEREIGN 3 BILLION FRENCH FRANCS OF 7 EUROBONDS DUE MAY 11 1998 AT ISSUE PRICE 101055 VIA PARIBAS LTD REOFFERED AT 9943 TO YIELD 714 ANNUAL A SPREAD 25 BASIS POINTS ABOVE FRENCH TREASURY'S 8 BONS A TAUX FIXE ET INTERETS ANNUELS FEES 1 7/8 NORDIC INVESTMENT BANK SUPRANATIONAL 200 BILLION LIRE OF 108 EUROBONDS DUE MAY 24 2003 AT ISSUE PRICE 1018 VIA IMI BANK SA YIELD 1083 AT 998 BREAKEVEN PRICE FOR COMANAGING BANKS FEES 2 NISSAN INTERNATIONAL FINANCE BV NETHERLANDSBASED JAPAN PARENT 50 MILLION OF 36875 EUROBONDS DUE APRIL 29 1994 AT ISSUE PRICE 100125 VIA FUJI INTERNATIONAL PLC REOFFER PRICE PAR KEEPWELL AGREEMENT WITH NISSAN MOTOR CO LTD FEES NOT DISCLOSED FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES GOLD 1528 IS BACKED BY FREDDIE MAC GOLD 15YEAR 6 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 725 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1483 YEARS 9304260055 930426 COMMODITIES GOLDSMITH SELLS NEWMONT STAKE TO SOROS FUNDS BY WARREN GETLER AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL SUDDENLY THERE'S A LOT OF ACTION IN GOLD AFTER MONTHS OF ONAGAIN OFFAGAIN UPTURNS THE PRICE OF BULLION SURGED 630 AN OUNCE FRIDAY SETTLING IN NEW YORK AT 34750 AN OUNCE THE HIGHEST LEVEL IN NEW YORK SPOT GOLD FUTURES TRADING IN MORE THAN SIX MONTHS LATE IN THE DAY SIR JAMES GOLDSMITH THE BILLIONAIRE ANGLOFRENCH FINANCIER SAID THAT HIS INVESTMENT HOLDING COMPANY AND AN ASSOCIATED FIRM SOLD A 10 STAKE IN NEWMONT MINING CO NORTH AMERICA'S LARGEST GOLDMINING COMPANY AND THAT HE HAD FUNNELLED MORE THAN 300 MILLION OF HIS PART OF THE PROCEEDS INTO OPTIONS TO BUY GOLD BULLION SIR JAMES SAID THE NEWMONT STAKE WAS SOLD IN A TRANSACTION VALUED AT AS MUCH AS 395 MILLION TO SEVERAL OFFSHORE FUNDS MANAGED BY FAMED TRADER GEORGE SOROS A SPOKESMAN FOR MR SOROS CONFIRMED THE TRANSACTION BUT DECLINED TO ELABORATE WORD OF THE DEAL CAPPED A DAY IN WHICH THE GOLD MARKET WAS ABUZZ WITH RUMORS THAT SEVERAL BIGNAME SPECULATORS WERE LOADING UP ON GOLD AND GOLD SHARES ALSO FUELING THE METAL'S ADVANCE WERE POLITICAL UNCERTAINTIES ABOUT YESTERDAY'S REFERENDUM IN RUSSIA AN IMPROVING SUPPLYANDDEMAND EQUATION AND A WEAKER DOLLAR GOLD'S SETTLEMENT AT 34750 FOR JUNE DELIVERY ON NEW YORK'S COMMODITY EXCHANGE FRIDAY MARKED A 6 CLIMB FROM SEVENYEAR LOWS AROUND 328 SEEN AT THE YEAR'S OUTSET THE METAL TRADED AS HIGH AS 348 FRIDAY PUSHING THROUGH TECHNICAL RESISTANCE LEVELS INCLUDING AN IMPORTANT 200DAY MOVING AVERAGE ON THE COMEX TRADERS AND ANALYSTS SAID THE ABSENCE OF INFLATIONARY SIGNALS WORLDWIDE MAY HOLD GOLD'S RISE IN CHECK BUT THEY SAY STRONG COMMERCIAL AND INVESTMENT DEMAND FOR BULLION AUGUR WELL FOR THE PRICE IT REALLY COMES DOWN TO THE SUPPLY AND DEMAND SITUATION SAID GERARD POLLINO A SENIOR GOLD TRADER AT THE COMEX AND PARTNER IN MILLENIUM FUTURES GROUP INC AS LONG AS MARKETS STAY AT THESE LEVELS AND WITH A FURTHER DOLLAR DEPRECIATION WE MAY SEE MORE PHYSICAL BUYING OF GOLD MR POLLINO SHOUTED OVER THE DIN AT THE COMEX TRADING FLOOR FRIDAY OPEN INTEREST OR THE NUMBER OF CONTRACTS OUTSTANDING IN THE NEARTERM COMEX GOLD FUTURES IS RUNNING AT NEARLY DOUBLE THE AVERAGE LAST YEAR GOLD PRICES WILL AVERAGE BETWEEN 340375 AN OUNCE THIS YEAR WELL ABOVE THE 329 AVERAGE FOR THE FIRST QUARTER SAID JEFFREY M CHRISTIAN MANAGING DIRECTOR OF CPM GROUP A NEW YORK PRECIOUS METALS CONSULTANCY AS GOLD PRICES MANAGED TO HOLD ABOVE 325 DURING THE FIRST QUARTER AN INCREASING NUMBER OF LONGTERM INVESTORS DECIDED THAT GOLD PRICES FINALLY MAY HAVE BOTTOMED OUT HE ADDED MR CHRISTIAN'S GROUP WHICH LISTS SEVERAL CENTRAL BANKS AMONG ITS CLIENTS IS PROJECTING CENTRAL BANK SALES TO DROP TO 145 MILLION OUNCES THIS YEAR FROM 171 MILLION OUNCES IN 1992 WORLDWIDE JEWELRY AND INDUSTRIAL DEMAND FOR GOLD ESTIMATED AT 826 MILLION OUNCES WILL OUTWEIGH SUPPLY ESTIMATED AT 801 MILLION OUNCES LAST YEAR ACCORDING TO CPM THE MARKET WAS SLIGHTLY IN SURPLUS MOST IMPORTANT MR CHRISTIAN SAYS IS THAT THE RATE OF GROWTH IN SUPPLY THIS YEAR IS SET TO SLOW TO ABOUT 18 FROM 33 LAST YEAR ACCORDING TO HIS GROUP'S PROJECTIONS A BIG QUESTION FOR GOLD MARKET PARTICIPANTS IS HOW SUBSTANTIAL SALES BY THE WORLD'S CENTRAL BANKS WILL BE THIS YEAR AT A LONDON MEETING THURSDAY NIGHT BETWEEN THE BANK OF ENGLAND AND THE LONDON BULLION MARKET ASSOCIATION THE BRITISH CENTRAL BANK GAVE SOME ENCOURAGEMENT ABOUT CENTRAL BANK ATTITUDES ABOUT GOLD SAID ONE ATTENDEE THE LBMA AN ORGANIZATION OF BULLION ANALYSTS TRADERS AND INVESTORS WAS ASSURED THAT DUTCH AND BELGIAN SALES LAST YEAR OF MORE THAN A COMBINED 14 MILLION OUNCES WEREN'T THE BEGINNING OF A PATTERN SAID ONE TRADER WHO ATTENDED THE MEETING AT THE BANK OF ENGLAND'S MUSEUM THE MESSAGE HE SAID WAS THAT CENTRAL BANKS WERE MAINLY CONSERVATIVE CREATURES WHO STILL VIEW GOLD AS A WAR CHEST AND WOULD BE LOATH TO TAKE THE RISK OF SELLING AT A LOW PRICE SIR JAMES SAID THE NEWMONT MINING STAKE WAS SOLD TO SOROS FUND MANAGEMENT BY HIS GENERAL ORIENTAL INVESTMENTS LTD HOLDING COMPANY AND RIT CAPITAL PARTNERS FORMERLY ROTHSCHILD INVESTMENT TRUST A TOTAL OF 68 MILLION SHARES IN NEWMONT WERE SOLD AT 3950 A SHARE HE SAID THERE IS ALSO AN AGREEMENT IN PRINCIPLE FOR THE SALE OF AN ADDITIONAL 32 MILLION SHARES AT THE SAME PRICE HE SAID IF THE ADDITIONAL SHARES ARE SOLD SUBJECT TO CERTAIN RIGHTS HELD BY NEWMONT THE TOTAL PROCEEDS OF THE TRANSACTION WOULD BE 395 MILLION HE SAID IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE NEWMONT SHARES CLOSED AT 45875 UP 3 AMID SHARPLY HIGHER PRICES IN MOST GOLDMINING SHARES FRIDAY'S SALE LEAVES SIR JAMES WITH A 29 STAKE IN NEWMONT THE FINANCIER HAD ACQUIRED A 42 STAKE IN NEWMONT FOR 11 BILLION IN CASH IN OCTOBER 1990 AND HAS GRADUALLY BEEN REDUCING THAT HOLDING GORDON R PARKER CHAIRMAN AND CHIEF EXECUTIVE OF DENVERBASED NEWMONT MINING SAID THAT HE HAD RECEIVED CONFIRMATION OF THE SALE FROM SIR JAMES AND THAT IT WAS NOT AT ALL UNEXPECTED HE SAID HE HADN'T HEARD FROM MR SOROS BUT THAT THE PURCHASE IS A STRONG SIGNAL TO THE MARKET THAT A MAN WHO HAS BEEN IN THE PAST SO EXTRAORDINARILY SUCCESSFUL HAS REASON TO BELIEVE THAT GOLD HAS MADE THE CORNER MR SOROS A MAN OF DIVERSE INTERESTS IS RENOWNED AS A HIGHSTAKES TRADER LAST SEPTEMBER HE MADE MORE THAN 1 BILLION BY BETTING AGAINST THE BRITISH POUND AND THE ITALIAN LIRA SIR JAMES DECLINED TO SAY PRECISELY HOW LARGE A GOLD OPTION HE BOUGHT BUT ONE OPTION FOR 700000 OUNCES WAS REPORTED TO HAVE BEEN TRADED AMID HEAVY MARKET ACTIVITY FRIDAY WE BOUGHT ENOUGH OPTIONS TO COVER THE TRANSACTION AT ITS FULL 395 MILLION VALUE SIR JAMES SAID IN AN INTERVIEW FROM HIS HOME IN AUTUN FRANCE NEIL BEHRMANN IN LONDON CONTRIBUTED TO THIS ARTICLE 9304260054 930426 IBM'S NEW CHAIRMAN SHUNS TRADITION AS HE PUTS TOGETHER HIS OWN TEAM BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL TAMPA FLA THE NEW KING OF INTERNATIONAL BUSINESS MACHINES CORP IS ALREADY OVERHAULING HIS COURT JUST ONE MONTH INTO THE JOB IBM CHAIRMAN LOUIS V GERSTNER JR SURPRISED THE COMPUTER INDUSTRY BY TAPPING ED ZSCHAU A WELLKNOWN SILICON VALLEY EXECUTIVE AND POLITICIAN TO RUN IBM'S HUGE DISKDRIVE BUSINESS AND DRUM UP OUTSIDE SALES MR GERSTNER ALSO BROUGHT IN A NEW COMMUNICATIONS CHIEF AND HE IS SEEKING NEW HEADS OF FINANCE AND PERSONNEL INSIDE ONE OF AMERICA'S MOST INBRED CORPORATIONS MR GERSTNER TURNED HEADS BY DISDAINING SOME SACRED IBM TRADITIONS FOR EXAMPLE HE IS ESCHEWING THE FAMOUS IBM MC THE SIXMAN MANAGEMENT COMMITTEE WHERE MAJOR DECISIONS USED TO EMERGE FROM AN ELABORATE SYSTEM OF DEBATES AND PRESENTATIONS HE DOES NOT PLAN TO BE MAKING DECISIONS BY COMMITTEE HE'S MADE THIS PRETTY CLEAR SAYS ONE INSIDER IBM EXECUTIVES ARE BUZZING ABOUT MR GERSTNER'S EXPLICIT REQUEST THAT MANAGERS TALK TO HIM WITHOUT THE AID OF SLIDES OR OVERHEAD PROJECTIONS FOR IBMERS THAT'S LIKE ASKING PADEREWSKI TO GIVE A CONCERT WITHOUT A PIANO SAYS SAM ALBERT A COMPUTER CONSULTANT AND FORMER IBM MANAGER MR GERSTNER IS HERE TODAY TO MAKE HIS PUBLIC DEBUT AS IBM'S CHAIRMAN AT THE COMPUTER COMPANY'S ANNUAL MEETING WHERE HE IS EXPECTED TO SPEAK BLUNTLY ABOUT THE CRISIS THAT STILL ENGULFS IBM LAST WEEK THE COMPANY REPORTED A FIRSTQUARTER LOSS OF 285 MILLION AMID PLUNGING MAINFRAME COMPUTER SALES MOREOVER ITS STOCK IS STILL MIRED IN THE 40S MR GERSTNER IS TACKLING IBM'S WOES LIKE THE FORMER MCKINSEY CONSULTANT HE IS HE ASKED EVERY DIVISION CHIEF FOR A 10PAGE REPORT ON THE STATUS AND CRITICAL ISSUES FACING THE BUSINESS AN OFFICIAL SAYS MR GERSTNER WOULDN'T DISCUSS HIS FIRST MONTH AT IBM HIS LIEUTENANTS SAY THEY DON'T EXPECT HIM TO START PROPOSING ANY MAJOR REMEDIES UNTIL THE SUMMER MEANWHILE HE IS BUSY RESHAPING HIS INNER CIRCLE HE HAS INSTALLED HIS LONGTIME PERSONAL ASSISTANT ISABELLE CUMMINS CLOSE TO HIS CORNER OFFICE EVEN BEFORE HE FORMALLY TOOK CHARGE APRIL 1 HE HAD SHUNTED ASIDE HIS FIRST IBM EXECUTIVE COMMUNICATIONS VICE PRESIDENT MARY LEE TURNER SHE RETIRED AT AGE 47 TO MAKE WAY FOR DAVID KALIS WHO CAME WITH MR GERSTNER FROM CIGARETTEMAKER RJR NABISCO HOLDINGS CORP MR GERSTNER IS EXPECTED TO PICK SUCCESSORS SOON FOR CHIEF FINANCIAL OFFICER PAUL RIZZO AND PERSONNEL CHIEF WALTON BURDICK MR RIZZO 65 CAME OUT OF RETIREMENT TO FILL IN FOR FRANK METZ WHO ABRUPTLY LEFT IBM IN THE JANUARY HOUSECLEANING THAT ALSO CLAIMED FORMER CHAIRMAN JOHN AKERS MR BURDICK 60 HAD LONG BEEN EXPECTED TO RETIRE THIS YEAR IBM IS CONSIDERING OUTSIDERS TO FILL BOTH POSTS MR AKERS HIMSELF IS STILL TECHNICALLY AN IBM EMPLOYEE THOUGH HE HAS LOST HIS TITLE HIS BOARD SEAT AND HIS OFFICE AT IBM'S ARMONK NY HEADQUARTERS HE AND HIS SECRETARY HAVE BEEN QUIETLY RELOCATED TO AN IBM BUILDING IN STAMFORD CONN THE COMPANY SAYS MR AKERS IS OFFICIALLY HELPING MR GERSTNER SETTLE IN AND HASN'T YET MADE ANY PLANS FOR HIS OWN FUTURE THE MOVE TO RECRUIT MR ZSCHAU WAS UNDERWAY BEFORE MR GERSTNER ARRIVED AT IBM MR ZSCHAU SAID IBM FIRST CONTACTED HIM IN JANUARY AND HE TOOK THE JOB AFTER AN ENTHUSIASTIC PHONE CALL FROM MR GERSTNER EARLIER THIS MONTH OVER THE LAST YEAR IBM HAS BEEN AGGRESSIVELY TURNING THE DISKDRIVE DIVISION INTO AN AUTONOMOUS BUSINESS IBM GAVE IT A SLICK NEW NAME ADSTAR AND LAST YEAR STARTED BREAKING OUT ITS OWN FINANCIAL RESULTS IT POSTED A NET LOSS OF 265 MILLION ON REVENUE OF 611 BILLION WITHOUT ITS SHARE OF A GIANT IBM RESTRUCTURING CHARGE THE UNIT HAD 247 MILLION IN EARNINGS ON FRIDAY IBM FORMALLY DECLARED ADSTAR A WHOLLY OWNED SUBSIDIARY AND NAMED MR ZSCHAU CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE MOVES FANNED SPECULATION THAT IBM IS DRESSING UP ADSTAR FOR A SALE OR PUBLIC OFFERING BUT IBM VICE CHAIRMAN JACK KUEHLER SAID IT IS NOT INTENDED AS A STEPPINGSTONE DOWN THAT PATH MR ZSCHAU 53 TAUGHT AT STANFORD'S BUSINESS SCHOOL FOR FIVE YEARS AND FOUNDED SYSTEM INDUSTRIES INC NOW A LEADING DATASTORAGE COMPANY A BIG PLAYER IN THE CALIFORNIA REPUBLICAN PARTY HE WAS SILICON VALLEY'S CONGRESSMAN FOR TWO TERMS IN THE 1980S AND THEN LOST A CLOSE SENATE RACE TO ALAN CRANSTON IN 1986 IBM SAID RAY ABUZAYYAD WHO HAD RUN ADSTAR WILL BECOME ITS PRESIDENT REPORTING TO MR ZSCHAU MR ZSCHAU SAID HE WANTS TO PUSH ADSTAR TO BECOME A BIGGER FORCE IN THE DISKDRIVE MARKET OUTSIDE IBM ACCELERATING A STRATEGY BEGUN LAST YEAR ALTHOUGH IBM DEVELOPED MUCH OF THE KEY TECHNOLOGY IN DISKDRIVES LAST YEAR THE BUSINESS HAD ONLY ABOUT 500 MILLION IN SALES TO OTHER COMPANIES MR AKERS HAD BEGUN A DRIVE TO TURN IBM INTO A DOZEN FREESTANDING BABY BLUES A KEY QUESTION FOR MR GERSTNER IS WHICH BABIES TO KEEP AND WHICH TO SPIN OFF OR REALIGN LAURENCE HOOPER CONTRIBUTED TO THIS ARTICLE 9304260053 930426 BUSINESS BRIEF LONGS DRUG STORES CORP REGULATORS PROBE BILLINGS FOR MEDICAID IN TWO STATES LONGS DRUG STORES CORP WALNUT CREEK CALIF SAID STATE AND FEDERAL REGULATORY AGENCIES ARE CONDUCTING AN INQUIRY INTO THE COMPANY'S MEDICAID BILLINGS IN HAWAII AND NEVADA THE COMPANY SAID ITS OWN INTERNAL INVESTIGATION CONFIRMED INACCURATE BILLINGS OCCURED UNDER BILLING SYSTEMS THE COMPANY NO LONGER USES THE DRUG STORE CHAIN SAID THE PROCEDURES BEING INVESTIGATED WERE CHANGED IN 1990 FOR HAWAII AND IN 1992 FOR NEVADA LONGS SAID IT IS COOPERATING WITH THE GOVERNMENT INQUIRIES AND WILL PROMPTLY REIUMBURSE THE MEDICAID PROGRAM FOR ANY BILLING ERRORS THE COMPANY SAID IT DOESN'T EXPECT ANY REQUIRED REIMBURSEMENTS TO HAVE A SIGNIFICANT EFFECT ON ITS EARNINGS ALTHOUGH IF REGULATORY AGENCIES IMPOSE A PENALTY THE EFFECT ON EARNINGS COULD BE MATERIAL 9304260052 930426 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED FIVE NEW LISTINGS INCLUDING FOUR INITIAL PUBLIC OFFERINGS AND THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET ANNOUNCED SEVEN NEW LISTINGS INCLUDING FOUR INITIAL PUBLIC OFFERINGS THE BIG BOARD SAID IT BEGAN TRADING THE FOLLOWING INITIAL PUBLIC OFFERINGS ACM MUNICIPAL SECURITIES INCOME INC NEW YORK ADIVERSIFIED CLOSEDEND MANAGEMENT INVESTMENT COMPANY UNDER AMU MUNICIPAL ADVANTAGE FUND INC NEW YORK A CLOSEDEND MANAGEMENT INVESTMENT COMPANY UNDER MAF TCW/DW TERM TRUST 2003 NEW YORK A DIVERSIFIED CLOSEDEND MANAGEMENT INVESTMENT COMPANY UNDER TMT TIG HOLDINGS WOODLANDS CALIF AN INSURANCE AND REINSURANCE CONCERN UNDER TIG THE EXCHANGE ALSO BEGAN TRADING IN APTARGROUP INC CRYSTAL LAKE ILL A MANUFACTURER DESIGNER AND SELLER OF PACKAGING COMPONENTS UNDER ATR APTARGROUP IS A SPINOFF OF PITTWAY CORP THE NATIONAL ASSOCIATION OF SECURITIES DEALERS ADDED THE FOLLOWING INITIAL PUBLIC OFFERINGS TO ITS NASDAQ NATIONAL MARKET SYSTEM WIND RIVER SYSTEMS INC ALAMEDA CALIF A SOFTWARE DEVELOPMENT CONCERN UNDER WIND EQUINOX SYSTEMS INC FORT LAUDERDALE FLA A DESIGNER AND MARKETER OF COMMUNICATIONS PRODUCTS FOR MULTIUSER COMPUTER SYSTEMS UNDER EQNX MARTIN COLORFI INC EDGEFIELD SC A PRODUCER OF POLYESTER FIBER AND PELLETS FROM RECYCLED PLASTIC UNDER MRCF SWISHER INTERNATIONAL INC CHARLOTTE NC A COMPANY THAT SELLS HYGIENE SERVICES AND PRODUCTS THROUGH FRANCHISES UNDER SWSH AND WARRANTS UNDER SWSHW THE NATIONAL MARKET SYSTEM ALSO BEGAN TRADING DIGITAL BIOMETRICS INC MINNETONKA MINN A DIGITAL FINGERPRINT AND ELECTROOPTICAL IMAGING TECHNOLOGY COMPANY UNDER DBII DIGITAL BIOMETRICS FORMERLY TRADED ON THE NASDAQ SMALLCAP MARKET TWO PINK SHEET ISSUES ALSO BEGAN TRADING ON THE NATIONAL MARKET SYSTEM TRICO BANCSHARES CHICO CALIF A BANK HOLDING COMPANY UNDER TCBK AND WEST COAST BANCORP INC CAPE CORAL FLA A BANK HOLDING COMPANY UNDER WBAN THE AMERICAN STOCK EXCHANGE SAID IT BEGAN TRADING THE FOLLOWING PAIR OF COMPANIES THAT USED TO TRADE OVERTHECOUNTER ON ITS EMERGING COMPANY MARKETPLACE MEASUREMENT SPECIALTIES INC FAIRFIELD NJ A MANUFACTURER AND MARKETER OF LOW COST DIGITAL ELECTRONIC MEASURING DEVICES UNDER MSSEC AND MIDSOUTH BANCORP INC JENNINGS LA A BANK HOLDING COMPANY UNDER MSLEC THE CHICAGO BOARD OPTIONS EXCHANGE BEGAN TRADING OPTIONS ON THE FOLLOWING ISSUES ALC COMMUNICATIONS CORP BINGHAM FARMS MICH JACKPOT ENTERPRISES INC LAS VEGAS NEV PRESIDENT RIVERBOAT CASINOS INC DAVENPORT IOWA OLICOM A/S LYNGBY DENMARK THE CBOE ALSO BEGAN TRADING LONGTERM EQUITY ANTICIPATION SECURITIES OR LEAPS ON CHRYSLER CORP THE AMERICAN STOCK EXCHANGE ALSO BEGAN TRADING OPTIONS ON ALC COMMUNICATIONS AND OPTIONS ON SNYDER OIL FORT WORTH TEXAS AND CAERE CORP LOS GATOS CALIF THE PHILADELPHIA STOCK EXCHANGE BEGAN TRADING OPTIONS ON PAYCHEX INC ROCHESTER NY 9304260051 930426 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ALDILA INC AN INITIAL OFFERING OF 23 MILLION COMMON SHARES VIA ALEX BROWN & SONS INC AND WILLIAM BLAIR & CO LEVITZ FURNITURE INC AND LEVITZ FURNITURE CORP A JOINT OFFERING OF 13 MILLION SHARES OF LEVITZ INC'S COMMON STOCK AND OF 85 MILLION PRINCIPAL AMOUNT OF LEVITZ CORP'S SENIOR SUBORDINATED NOTES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP PATTEN CORP AN OFFERING OF 25 MILLION OF SENIOR COLLATERALIZED NOTES PROGRESSIVE CORP AN OFFERING OF 45 MILLION COMMON SHARES VIA BEAR STEARNS & CO RR DONNELLEY & SONS CO AN OFFERING OF 460 MILLION IN UNSECURED DEBT SECURITIES ROBERT MONDAVI WINERY AN INITIAL OFFERING OF 37 MILLION SHARES OF CLASS A COMMON STOCK VIA GOLDMAN SACHS & CO AND HAMBRECHT & QUIST INC SWEETHEART HOLDINGS INC A SHELF OFFERING OF 100 MILLION OF SENIOR NOTES AND 100 MILLION SENIOR SUBORDINATED NOTES 9304260050 930426 CREDIT MARKETS BOND RALLY MAY BE NEAR FINAL STAGE FEW MANAGERS BELIEVE 30YEAR YIELD OF 65 WOULD HOLD FOR LONG BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE POWERFUL BOND MARKET RALLY ISN'T OUT OF GAS YET BUT THE FUEL TANK MAY BE RUNNING LOW MANY MONEY MANAGERS SAY THAT LONGTERM INTEREST RATES ARE LIKELY TO COAST AT THEIR CURRENT LOW LEVELS FOR THE NEAR FUTURE AND FEW WORRY ABOUT ANY MAJOR MOVES HIGHER I'M NOT GETTING NERVOUS SAYS ROBERT DOW DIRECTOR OF THE FIXEDINCOME MANAGEMENT GROUP AT LORD ABBETT & CO YOU PROBABLY HAVE ANOTHER YEAR OR TWO HE SAYS BEFORE YOU HAVE TO WORRY ABOUT A CYCLICAL UPTURN IN INTEREST RATES INFLATION WORRIES PUSHED LONGTERM BOND YIELDS BACK OVER 7 WITHIN THE PAST MONTH BUT ECONOMIC REPORTS SUGGESTING THAT THOSE FEARS MAY HAVE BEEN OVERDONE HELPED PUSH YIELDS RIGHT BACK DOWN AGAIN THE BENCHMARK 30YEAR TREASURY BOND SETTLED AT 679 ON FRIDAY WITH A PRICE OF 104 6/32 DOWN 5/8 POINT OR 625 FOR A BOND WITH A 1000 FACE VALUE SINCE APRIL 2 HOWEVER THE PRICE OF THE 30YEAR BOND HAS RISEN 3 3/8 POINTS OR 3375 MANY MONEY MANAGERS STILL BELIEVE A RUN AT A 65 YIELD ON THE 30YEAR BOND IS A POSSIBILITY BUT FEW THINK LONGTERM YIELDS WILL STAY THERE VERY LONG WHILE THESE MANAGERS BELIEVE THE ECONOMY CONTINUES TO GAIN STRENGTH THEY DON'T THINK IT IS HEADED FOR THE KIND OF EXPLOSIVE GROWTH THAT COULD STOKE INFLATIONARY PRESSURES BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN THE EARLY PHASES OF AN ECONOMIC RECOVERY ARE USUALLY CHARACTERIZED BY FALLING INTEREST RATES SAYS LORD ABBETT'S MR DOW WHO BELIEVES LONG RATES COULD STILL FALL TO 65 OVER THE NEXT 18 MONTHS MR DOW SAYS ECONOMIC WEAKNESS ABROAD IS ANOTHER REASON FOR LOWER INTEREST RATES IN THE US YOU HAVE EUROPEAN AND JAPANESE ECONOMIES AGAINST THE ROPES AND GERMANY BRINGING ITS INTEREST RATES DOWN HE SAYS THIS SHOULD HELP STABILIZE THE DOLLAR A BIT AND BENEFIT THE US BOND MARKET A NUMBER OF OTHER MONEY MANAGERS AGREE I DON'T SEE A WHOLE LOT OF RISK THAT RATES MOVE AGGRESSIVELY HIGHER SAYS MARK DURBIANO A JUNKBOND PORTFOLIO MANAGER AT FEDERATED RESEARCH CORP I WOULD BET THE 30YEAR BOND YIELD HITS 6 BEFORE IT HITS 8 ACCORDING TO MR DURBIANO RECENT INFLATION WORRIES WERE OVERBLOWN HE SAYS ARE HEALTH CARE PRICES GOING TO CONTINUE RISING ARE TOBACCO PRICES I DON'T THINK SO THERE IS A CHANCE THAT LONGTERM BOND YIELDS COULD MOVE AS HIGH AS 71 IF THE US ECONOMY STARTS TO PICK UP OVER THE NEXT QUARTER HE SAYS BUT MOVES ANY HIGHER THAN THAT ARE EXTREMELY UNLIKELY DONALD E MAUDE CHIEF US FIXEDINCOME STRATEGIST AT SCOTIAMCLEOD A CANADIAN INVESTMENT BANK BELIEVES US LONGTERM BOND YIELDS WILL BE STUCK IN A TRADING RANGE FOR THE NEXT TWO MONTHS ACCORDING TO MR MAUDE BOND YIELDS ARE UNLIKELY TO DROP SHARPLY LOWER IN THAT PERIOD AND MAY IN FACT MOVE HIGHER IN THE THIRD AND FOURTH QUARTERS OF THIS YEAR THANKS TO A GROWING ECONOMY AND GROWING GOVERNMENT BORROWING NEEDS AS THE US TREASURY SELLS MORE NOTES AND BONDS THE EXTRA SUPPLY WOULD TEND TO DEPRESS THE PRICE OF OUTSTANDING TREASURY SECURITIES WE'RE LOOKING FOR 17 BILLION IN NET NEW TREASURY CASH NEEDS FOR THE SECOND QUARTER HE SAYS THAT MOVES UP TO THE 110 BILLION RANGE IN THE THIRD QUARTER AND ABOUT 100 BILLION IN THE FOURTH QUARTER ONE FACTOR THAT COULD HAVE A SIGNIFICANT EFFECT ON BOND YIELDS IS THE SCHEDULED ANNOUNCEMENT ON MAY 5 BY THE TREASURY OF THE SIZE OF ITS QUARTERLY REFUNDING AUCTIONS OF 30YEAR BONDS 10YEAR NOTES AND THREEYEAR NOTES FOR WEEKS INVESTORS HAVE SPECULATED THAT THE TREASURY WOULD MOVE TO REDUCE THE AMOUNT OF 30YEAR BONDS AUCTIONED IN FAVOR OF ISSUING MORE SHORTERTERM SECURITIES LIKE THREEMONTH TREASURY BILLS THIS IS BECAUSE THE CLINTON ADMINISTRATION INCLUDED IN ITS PROPOSED BUDGET AN INTERESTCOST SAVING OF MORE THAN 16 BILLION FROM SHIFTS IN THE GOVERNMENT'S BORROWING MIX THIS SPECULATION HAS HELPED TO BOOST BOND PRICES ACCORDING TO DANA JOHNSON HEAD OF MARKET ANALYSIS AT FIRST CHICAGO CAPITAL MARKETS ANYTHING MORE THAN A MODERATE REDUCTION IN THE SIZE OF THE 30YEAR BOND AND 10YEAR NOTE AUCTIONS COULD FUEL A SURGE IN BOND PRICES THE MARKET REMAINS SKEPTICAL ABOUT A DRAMATIC DECLINE IN THE SIZE OF THE BOND AUCTIONS MR JOHNSON SAYS TREASURY SECRETARY LLOYD BENTSEN HAS SAID RECENTLY THAT THE GOVERNMENT IS NOT CONSIDERING A RADICAL CHANGE IN THE BORROWING MIX BUT SOMETIMES POLITICIANS DON'T KNOW WHAT RADICAL' MEANS TO THE BOND MARKET MR JOHNSON SAYS WITH OTHER INDUSTRIALIZED NATIONS FOLLOWING ANTIINFLATIONARY ECONOMIC POLICIES MR JOHNSON SAYS LONGTERM YIELDS IN THE US COULD STILL HIT 65 BY YEAR END BUT NOT EVERYONE IS SO SURE THE MARKET CAN STILL MAINTAIN A POSITIVE TONE IN THE NEXT MONTH OR TWO SAYS NANCY KIMELMAN CHIEF ECONOMIST AT TECHNICAL DATA A UNIT OF THOMSON FINANCIAL SERVICES BUT I DON'T THINK WE'RE GOING TO GET TO 65 AND IF BOND YIELDS DO THEY WON'T STAY THERE VERY LONG SHE FEELS MS KIMELMAN SAYS SHE EXPECTS A SIGNIFICANT PICKUP IN THE US ECONOMY IN THE SECOND HALF OF THIS YEAR WRANGLING OVER THE BUDGET MAY GIVE RESULTS NOT PLEASING TO THE BOND MARKET MS KIMELMAN ADDS SHE SAYS THAT THE SUCCESSFUL REPUBLICAN EFFORT TO BLOCK PRESIDENT CLINTON'S ORIGINAL ECONOMIC STIMULUS PROGRAM WAS MERELY A POLITICAL MOVE AND INVESTORS CAN EXPECT MORE NOT LESS GOVERNMENT SPENDING A LOT MORE PORK IS GOING TO BE THROWN INTO THE BUDGET THAN PEOPLE THINK SHE SAYS MS KIMELMAN PREDICTS LONGTERM RATES COULD HIT 725 BY YEAR END PRICES OF MOST US TREASURY SECURITIES DROPPED SLIGHTLY LOWER FRIDAY ALTHOUGH 30YEAR BONDS DROPPED SHARPLY THE 10YEAR NOTE DROPPED MORE THAN 1/4 POINT OR MORE THAN 250 FOR A BOND WITH A 1000 FACE VALUE TO 102 20/32 TO YIELD 588 BUT THE BENCHMARK 30YEAR TREASURY BOND DROPPED 5/8 POINT TO 104 6/32 TO YIELD 679 UP FROM 674 THE MARKET'S DECLINE REVERSED A POSITIVE TONE SET FRIDAY MORNING WE HAD STARTED OUT THE DAY WITH A DURABLEGOODS NUMBER THAT WAS WEAKER THAN EXPECTED AND THAT INITIALLY SENT THE MARKET HIGHER SAID KATHLEEN CAMILLI CHIEF ECONOMIST AT MARIA FIORINI RAMIREZ INC THE COMMERCE DEPARTMENT REPORTED DURABLEGOODS ORDERS FELL 37 DURING MARCH A LARGER DECLINE THAN MOST ECONOMISTS HAD PREDICTED HOWEVER THE GAINS PROVED TO BE SHORTLIVED AS THE LONG END FADED FROM ITS HIGHS THROUGHOUT THE SESSION THE 30YEAR BOND LAGGED BEHIND THE MARKET THE BOND HAS CLEARLY BEEN THE BIG UNDERPERFORMER SAID ANTHONY KARYDAKIS SENIOR FINANCIAL ECONOMIST AT FIRST CHICAGO CAPITAL MARKETS SELLING OF THE 30YEAR BOND PARTIALLY IN RESPONSE TO TALK OF A LARGE HEDGE FUND SELLING BONDS AND BUYING FIVEYEAR NOTES DRAGGED THE ENTIRE SPECTRUM OF TREASURY ISSUES LOWER THE BOND WAS WEAKENING CONSTANTLY AND THAT STARTED PULLING THE WHOLE MARKET DOWN SAID MR KARYDAKIS OF FIRST CHICAGO HELPING PUSH THE PRICES LOWER WERE DEALERS SELLING AHEAD OF THIS WEEK'S TWOYEAR NOTE AND FIVEYEAR NOTE AUCTIONS PLAYERS SAID THE TREASURY IS SLATED TO SELL 1525 BILLION IN TWOYEAR NOTES TOMORROW AND 110 BILLION IN FIVEYEAR NOTES WEDNESDAY IN LATE WHENISSUED TRADING THE TWOYEAR NOTE YIELDED 377 WHILE THE FIVEYEAR NOTE YIELDED 506 9304260049 930426 INTERNATIONAL WASHINGTON INSIGHT ENTERPRISE FUNDS FOR EASTERN EUROPE MAY BE A LITTLE TOO FREE OF REGULATION BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AS PART OF HIS EFFORT TO HELP RUSSIA PRESIDENT CLINTON WANTS TO SET UP A 300 MILLION RUSSIANAMERICAN ENTERPRISE FUND MUCH LIKE THE FUNDS CURRENTLY NURTURING NASCENT CAPITALISTS IN EASTERN EUROPE BUT ONE CONGRESSIONAL SUBCOMMITTEE IS WORRIED THAT THESE TAXPAYERFINANCED FUNDS MAY BE TOO PRIVATE AND TOO INDEPENDENT IT HAS ASKED CONGRESSIONAL INVESTIGATORS TO LOOK INTO THE FUNDS' OPERATIONS THE FUNDS' FISCAL 1993 MONEY IS BEING WITHHELD UNTIL SOME OF THE COMMITTEE'S QUESTIONS ARE ADDRESSED FRANKLY I HAVE GOTTEN THE SENSE THAT THE FUNDS HAVE BEEN TREATED WITH KID GLOVES BECAUSE OF THE POLITICAL CONNECTIONS OF THEIR BOARD CHAIRMEN CHARGED REP DAVID OBEY CHAIRMAN OF THE HOUSE APPROPRIATIONS FOREIGN OPERATIONS SUBCOMMITTEE AT A RECENT HEARING I THINK THAT NEEDS TO COME TO A SCREECHING HALT THE WISCONSIN DEMOCRAT SAID FROM THEIR START IN LATE 1989 THE ENTERPRISE FUNDS IN POLAND HUNGARY BULGARIA THE CZECH REPUBLIC AND SLOVAKIA WERE INTENDED TO BE A DIFFERENT LESSREGULATED TYPE OF FOREIGN AID EACH IS A PRIVATE NONPROFIT CORPORATION THEIR BOARDS ARE LED BY BIGNAME FINANCIERS AND VENTURE CAPITALISTS WHO DONATE TIME THEIR MANDATE IS TO ENCOURAGE PRIVATE ENTERPRISE MAINLY THROUGH LOANS AND DIRECT INVESTMENTS RATHER THAN THE MORETRADITIONAL FOREIGNAID GRANTS TO GIVE THEIR CAPITALIST SPIRITS FREE REIN AND ENSURE HARDNOSED BUSINESS JUDGMENTS THE ENTERPRISE FUNDS INTENTIONALLY WERE SHELTERED FROM BUREAUCRATIC MEDDLING INVESTMENT DECISIONS ARE MADE WITHOUT GOVERNMENT OFFICIALS THE WHOLE POINT WAS THAT THIS WAS SUPPOSED TO BE A FASTMOVING BUSINESS LIKE PRIVATE ENTERPRISE AND IF IT WERE SUBJECT TO TRADITIONAL FOREIGN AID REGULATIONS THEN IT WOULD BE JUST ANOTHER AID PROGRAM SAID JOHN BIRKELUND CHAIRMAN OF THE POLISHAMERICAN ENTERPRISE FUND AND CHAIRMAN OF DILLON READ & CO A NEW YORK PRIVATE INVESTMENT BANKING FIRM THE FUNDS HAVE HAD REMARKABLE SUCCESS WORKING UNDER INCREDIBLE CONSTRAINTS SAYS SEN RICHARD LUGAR AN INDIANA REPUBLICAN WORKING WITH LOCAL BANKS THE POLAND FUND HAS MADE LOANS TO MORE THAN 1000 SMALL BUSINESSES INCLUDING A HEALTH SPA A FROZENFOOD PACKING COMPANY AND AN IRON FOUNDRY IT HAS TRAINED BANKERS ACROSS THE COUNTRY AND MADE EQUITY INVESTMENTS IN ABOUT 30 LARGER ENTERPRISES ITS SUCCESS HAS ATTRACTED 101 MILLION IN NEW INVESTMENTS INCLUDING 51 MILLION FROM US CORPORATE PENSION FUNDS REP OBEY DOESN'T QUESTION THE FUNDS' BUSINESS JUDGMENTS GOD HELP THE COUNTRY IF I EVER HAD TO MAKE FINANCIAL INVESTMENTS TO MAKE MONEY HE SAYS WHAT WORRIES HIM HE SAYS IS THAT THE FUNDS APPEAR TO BE EXERCISING AN INDEPENDENCE FAR BEYOND THEIR INVESTMENT DECISIONS AND BEYOND CONGRESSIONAL OVERSIGHT THE FUNDS' ORIGINAL CHARTERS FOR EXAMPLE GAVE THEM THE RIGHT TO DECIDE WHEN THEY SHOULD BE LIQUIDATED AND WHO SHOULD GET THEIR ASSETS CHARITIES THE US GOVERNMENT OR PROJECTS IN THE HOST COUNTRIES REP OBEY WANTS CONGRESS ALONG WITH THE EXECUTIVE BRANCH TO HAVE A SAY IN THOSE DECISIONS MR OBEY ALSO IS DISTURBED BY THE HUNGARIANAMERICAN ENTERPRISE FUND'S DECISION TO SET UP AND INVEST 4 MILLION IN AN INDEPENDENT MERCHANT BANK WITH PARTNERS EARNING NEARLY DOUBLE THE FUNDS' SALARY LIMIT THE FACT THAT THE BANK'S PRESIDENT IS A FORMER AIDE TO PRESIDENT RONALD REAGAN HAS RAISED FURTHER ALARMS WE JUST NEED TO BE SURE THAT THIS PROJECT WAS COMPETITIVELY BID AND THAT POLITICAL INFLUENCE WASN'T INVOLVED MR OBEY SAYS ROBERT C ODLE CORPORATE COUNSEL TO THREE OF THE FOUR FUNDS SAYS THE SALARY CAP DOESN'T APPLY TO ANY OF THE COMPANIES THE FUND INVESTS IN THE 1 MILLION COMPENSATION POT THAT THE BANK'S PRINCIPALS WILL SPLIT HE SAYS IS KIND OF AT THE LOWER END FOR THAT SORT OF BUSINESS MR BIRKELUND OF THE POLISH FUND SAYS THE FUNDS' AUTONOMY IS THE SECRET OF THEIR SUCCESS IN ATTRACTING INVESTORS AND KEEPING FIRSTRATE MANAGERS IT WOULD BE VERY DIFFICULT TO BUILD AN ORGANIZATION AND DO THE THINGS WE'VE BEEN DOING IF AT ANY GIVEN MOMENT MR OBEY COULD RECALL THE MONEY HE SAYS REP OBEY RESPONDS WE NEED TO BE IN ON THE GROUND FLOOR BEFORE THESE DECISIONS ARE MADE IN THE END WE'RE GOING TO BE THE ONES WHO HAVE TO EXPLAIN TO THE AMERICAN TAXPAYERS HOW THEIR MONEY WAS SPENT 9304260048 930426 BUSINESS BRIEF COLEMAN CO FIRSTPERIOD NET ROSE 30 NEW PRODUCTS GROWTH CITED COLEMAN CO REPORTED A 30 RISE IN NET INCOME FOR THE FIRST QUARTER AND CREDITED ITS EXPANDED PRODUCT LINE AND INTERNATIONAL SALES FOR THE IMPROVEMENT THE WICHITA KAN CAMPING AND RECREATIONEQUIPMENT CONCERN REPORTED EARNINGS OF 99 MILLION OR 37 CENTS A SHARE UP FROM 76 MILLION OR 31 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE CLIMBED 29 TO 1526 MILLION FROM 1185 MILLION THE COMPANY ATTRIBUTED ITS STRONGER REVENUE TO A GROWING INTEREST IN OUTDOOR ACTIVITIES AND TO THE BROADENING OF ITS PRODUCT LINE TO ATTRACT NONCAMPING CONSUMERS THE COMPANY ALSO NOTED INTERNATIONAL GROWTH IN THE PAST FOUR YEARS OUR COMPOUNDED ANNUAL GROWTH RATE IN REVENUES FROM JAPAN AND THE PACIFIC RIM HAS BEEN 32 A SPOKESMAN SAID ADDING THAT THE COMPANY BELIEVES ITS NAME RECOGNITION AND MARKET SHARE IN JAPAN MATCH THE COMPANY'S US LEVELS 9304260047 930426 SEARS SAYS 3400 SALARIED EMPLOYEES HAVE ACCEPTED EARLYRETIREMENT OFFER CHICAGO SEARS ROEBUCK & CO SAID 3400 SALARIED EMPLOYEES HAVE ACCEPTED A SPECIAL EARLYRETIREMENT OFFERING SOME 4000 PEOPLE WERE ELIGIBLE FOR THE OFFERING AND THE GROUP THAT ELECTED TO TAKE EARLY RETIREMENT INCLUDES A NUMBER OF SEARS'S SENIOR EXECUTIVES THE COMPANY SAID SEARS HAD EXPECTED ONLY 3000 ELIGIBLE EMPLOYEES TO TAKE THE OFFERING THE POSITIONS VACATED THROUGH THE EARLYRETIREMENT OFFERING INCLUDE FOUR VICE PRESIDENTS TWO SENIOR VICE PRESIDENTS ONE EXECUTIVE VICE PRESIDENT AND THE PRESIDENT OF THE RETAIL DIVISION SEARS ALREADY HAS NAMED REPLACEMENTS FOR NEARLY ALL THOSE POSITIONS SEARS ANNOUNCED THE PROGRAM IN JANUARY IN CONJUNCTION WITH A BROAD RESTRUCTURING OF ITS RETAIL OPERATIONS THE BIG RETAIL AND INSURANCE CONCERN SAID IT WILL FILL ONLY HALF THE JOBS VACATED THROUGH THE PROGRAM THE COMPANY SAID IT ALREADY ACCOUNTED FOR THE COSTS OF THE PROGRAM IN A SPECIAL CHARGE TAKEN IN LAST YEAR'S FOURTH QUARTER THE OFFERING IS PART OF SEARS'S PLAN TO TRIM 50000 JOBS THIS YEAR MANY OF THOSE JOBS WILL BE ELIMINATED THROUGH THE CLOSING OF SEARS'S CATALOG OPERATIONS AND 118 OF ITS RETAIL STORES AT THE END OF 1992 SEARS EMPLOYED SOME 440000 PEOPLE SEARS'S OFFER GARNERED A LARGER THAN ANTICIPATED NUMBER OF SUBSCRIBERS BECAUSE IT WAS VERY GENEROUS SAID RETAIL CONSULTANT ISAAC LAGNADO THE OFFERING EFFECTIVELY LOWERED SEARS'S RETIREMENT ELIGIBILITY AGE TO 50 YEARS FROM 55 YEARS AND LOWERED THE SERVICE REQUIREMENT FOR FULL RETIREMENT TO 20 YEARS FROM 25 THE OFFER ALSO INCLUDED A FULL YEAR'S PAY AS A SEVERANCE BENEFIT 9304260046 930426 WHAT'S NEWS BUSINESS AND FINANCE STOCKS SLID ADDING TO EVIDENCE THAT CLINTON'S HONEYMOON WITH THE STOCK MARKET MAY BE OVER BOND PRICES DECLINED WHILE THE DOLLAR ENDED MIXED THE DOW JONES INDUSTRIALS FELL 1540 POINTS TO 341377 IN HEAVY TRADING THE PRICE OF THE 30YEAR TREASURY BOND FELL 5/8 POINT LIFTING ITS YIELD TO 679 ORDERS FOR DURABLE GOODS FELL 37 IN MARCH THE BIGGEST DROP IN 15 MONTHS RAISING NEW QUESTIONS ABOUT THE VITALITY OF THE ECONOMIC RECOVERY MACHINE TOOL ORDERS JUMPED 157 SALES OF USMADE CARS CLIMBED IN MIDAPRIL REFLECTING A REBOUND BY GENERAL MOTORS AND CONTINUED STRONG SALES FOR CHRYSLER AND FORD GM'S STOCK PRICE SURGED 1875 TO 4050 CHRYSLER AND FORD SHARES ALSO ROSE FORD'S EXPLORER SPORTUTILITY VEHICLE RECORDED A DROP IN SALES DESPITE STRONG SALES OF LIGHT TRUCKS OVERALL THE WHITE HOUSE ENDED LONGSTANDING FEDERAL OPPOSITION TO STATE EFFORTS TO TAX FOREIGNBASED MULTINATIONAL COMPANIES MORE AGGRESSIVELY THE SHIFT WILL HELP CALIFORNIA WHOSE POLICY IS AN ISSUE BEFORE THE SUPREME COURT IBM'S CHAIRMAN LOUIS GERSTNER NAMED SILICON VALLEY EXECUTIVE ED ZSCHAU TO RUN ITS DISKDRIVE UNIT THE NEW CHAIRMAN ALSO BROUGHT IN A NEW COMMUNICATIONS CHIEF AND IS SEEKING NEW HEADS OF FINANCE AND PERSONNEL A FORMER GENERAL ELECTRIC WORKER WAS AWARDED 115 MILLION BY A JUDGE FOR EXPOSING A DEFENSECONTRACT FRAUD AT THE COMPANY AFTER THE US ABANDONED ITS BID TO CUT THE RECORD AWARD MOTOROLA PLANS TO PRICE A PERSONALCOMPUTER CHIP IT IS DEVELOPING WITH IBM AND APPLE AT LESS THAN HALF THE INITIAL PRICE OF INTEL'S NEWEST CHIP MCDONNELL DOUGLAS WON TWA'S TENTATIVE AGREEMENT TO LEASE FIVE JETS MADE IN CHINA BY A MCDONNELL VENTURE MARKING THE FIRST TIME A US COMMERCIAL JET HAS BEEN BUILT OFFSHORE AND PLACED WITH A WESTERN CARRIER HUGHES AIRCRAFT SUSPENDED PLANS TO DISPLAY ITS WARES AT THE PARIS AIR SHOW IN JUNE AFTER THE CIA TOLD HUGHES AND OTHER DEFENSE CONTRACTORS THAT THEY MAY HAVE BEEN TARGETED BY A FRENCH GOVERNMENT SPYING SCHEME US COMMERCE CHIEF RONALD BROWN CALLED SOME OF JAPAN'S ARGUMENTS ON TRADE DISINGENUOUS WHILE JAPANESE OFFICIALS CRITICIZED THE US FOR COMMENTS THAT HAVE HELPED THE YEN RISE GOLD FUTURES SURGED 630 AN OUNCE TO 34750 A SIXMONTH HIGH SEPARATELY SIR JAMES GOLDSMITH SOLD A STAKE IN NEWMONT MINING AND BOUGHT OVER 300 MILLION IN GOLD OPTIONS HEINZ IS CUTTING ITS STAFF BY AN ADDITIONAL 8 TO 10 OR BY AS MANY AS 3600 WORKERS IN THE NEXT 18 MONTHS AMID SLUGGISH SALES FOR THE FOOD CONCERN SEARS SAID 3400 SALARIED EMPLOYEES MORE THAN EXPECTED ACCEPTED A SPECIAL EARLYRETIREMENT OFFER PHARMOR OFFICERS AND DIRECTORS WERE SUED BY 17 INSURERS WHICH ACCUSED THE OFFICIALS OF MISLEADING THEM INTO INVESTING IN THE DRUGSTORE CHAIN BONDS LEHMAN BROTHERS TREASURY INDEX 511276 OFF 1886 COMMODITIES OIL 2034 A BARREL UP 19 CENTS DOW JONES FUTURES INDEX 12447 UP 084 SPOT INDEX 12078 UP 061 DOLLAR 11050 YEN UP 057 15825 MARKS OFF 00134 9304260045 930426 THE OUTLOOK JAPAN'S WARY SHOPPERS WORRY TWO CAPITALS BY JOHN BUSSEY TOKYO IF PRESIDENT CLINTON HOPES TO BEGIN RIGHTING THE TRADE IMBALANCE WITH JAPAN HE WILL NEED HELP FROM PEOPLE SUCH AS FUJIO KOBAYASHI MR KOBAYASHI IS ONE OF THE MILLIONS OF JAPANESE CONSUMERS WHO BY BUYING GOODS AND SERVICES ACCOUNT FOR ALMOST 60 OF JAPAN'S GROSS NATIONAL PRODUCT MR CLINTON WANTS THE JAPANESE TO START BUYING MORE US GOODS BUREAUCRATS IN TOKYO NEED CONSUMERS TOO TO HELP PULL THE WORLD'S SECONDLARGEST ECONOMY OUT OF ITS SLUMP MR CLINTON HAS BEEN TRYING TO GET WHAT HE WANTS IN PART BY SUPPORTING A STRONGER YEN WHICH MAKES US GOODS CHEAPER FOR JAPANESE THE TOKYO BUREAUCRATS MEANWHILE HAVE LAUNCHED A PUBLICSPENDING SPREE TO JOLT THE ECONOMY BUT SOMETHING IS STANDING IN THE WAY MR KOBAYASHI AND OTHER CONSUMERS THEY AREN'T IN A BUYING MOOD I'VE STOPED PURCHASING UNNECESSARY THINGS AND SPEND MONEY ONLY WHEN I HAVE TO FOR CLOTHES FOR MY KIDS TO WEAR TO SCHOOL SAYS MR KOBAYASHI A 41YEAROLD ELECTRONICSCOMPANY WORKER AND I DON'T THINK I'LL START SPENDING MORE SOON ADDS A WOMAN SHOPPING IN TOKYO'S SHINJUKU DISTRICT MY HUSBAND'S OVERTIME PAY HAS BEEN CUT SO I DON'T BUY THINGS ON IMPULSE ANYMORE I BUY THINGS ON SALE JAPAN'S CONSUMERS CRITICAL TO THE NATION'S ECONOMIC RECOVERY HAVE HUNKERED DOWN AND THERE IS MUCH DEBATE HERE ABOUT WHEN THEY WILL EMERGE FROM THEIR SHELLS SOME ECONOMISTS BELIEVE THAT THE CONSUMER IS ON THE VERGE OF A COMEBACK BUT SO FAR THERE ARE FEW TANGIBLE SIGNS OF THAT AFTER JAPAN'S RAUCOUS SPENDING BINGE IN THE 1980S WHICH SATURATED HOMES WITH GOODS CAME THE CORPORATE RETRENCHMENT OF THE 1990S AND ATTENDANT PAYROLL CUTS MANY CONSUMERS FEEL EXHAUSTED AND INSECURE JAPAN'S CONSUMERSENTIMENT INDEX AT LAST READING WAS AT ITS LOWEST LEVEL IN MORE THAN A DECADE OVERTIME A KEY PART OF JAPANESE INCOME WAS DOWN AGAIN IN FEBRUARY LAST WEEK NEW GOVERNMENT STATISTICS SHOWED ADJUSTED HOUSEHOLD SPENDING STAGNANT IN FEBRUARY AFTER DROPPING FOR TWO MONTHS PERSONAL BANKRUPTCIES LAST YEAR SOARED TO A RECORD AND THE TREND DOESN'T SEEM TO BE ABATING INDEED THE STRONGER YEN WILL HURT EXPORTERS AND MAY PUSH MORE COMPANIES TO TRIM PAY AND WORKERS CAR SALES WERE UP SLIGHTLY IN MARCH AFTER HEAVY DISCOUNTING BY DEALERS BUT ACCORDING TO NISSAN AND TOYOTA SALES HAVE DROPPED AGAIN SO FAR IN APRIL WHAT'S MORE THE MOST POPULAR MODELS ARE THE STRIPPEDDOWN SIMPLER ONES ANOTHER SIGN OF THE SOBER TIMES SALES OF TRENDY BEAUJOLAIS NOUVEAU WHICH SOARED TO 450000 CASES IN 1989 PLUMMETED TO 150000 CASES LAST YEAR DISCOUNT STORES NOW THE RAGE IN TOKYO ARE SPRINGING UP IN THE TONY GINZA AND OTHER SHOPPING AREAS BUYERS FOR RETAIL CHAINS SEE A TREND TOWARD DRESSDOWN FRENCH AND AMERICAN DESIGNS ON SALE IN TOKYO'S GLITZY AOYAMA DISTRICT USED TSHIRTS FROM THE US THOSE MERCHANTS STILL WEDDED TO HIGH MARGINS ARE HAVING A PARTICULARLY HARD TIME SALES AT TOKYO'S BIG DEPARTMENT STORES PLUMMETED 11 IN MARCH SOME ANALYSTS HERE ALSO WORRY THAT THE GOVERNMENT'S 132TRILLIONYEN EMERGENCY SPENDING PACKAGE HAS PRECIOUS LITTLE IN IT TO GET THE CONSUMER OUT OF HIS CAVE NOTABLY THE ARCHITECTS OF THE STIMULUS PROGRAM DIDN'T INCLUDE AN INCOMETAX CUT SO IT IS THAT MANY ECONOMISTS SUCH AS MINEKO SASAKISMITH OF CREDIT SUISSE JAPAN DON'T SEE ANY SIGN OF A QUICK TURNAROUND IN CONSUMER SENTIMENT SHE DISCERNS A LASTING CHANGE IN BEHAVIOR GONE FOR THE FORESEEABLE FUTURE SHE SAYS IS THE PENCHANT FOR CONSPICUOUS CONSUMPTION THE IDEA THAT CONSUMPTION WILL PERK UP SOON IS HARD TO BELIEVE AGREES ISAO NAKAUCHI CHAIRMAN OF DAIEI INC JAPAN'S LARGEST SUPERMARKET CHAIN I THINK IT WON'T BE UNTIL NEXT YEAR THAT PEOPLE SENSE RECOVERY EVEN THE GOVERNMENT'S NORMALLY ROSY PROJECTIONS SEEM MUTED THE ECONOMIC PLANNING AGENCY DOESN'T SEE CONSUMPTION RISING UNTIL AFTER OCTOBER AND EVEN THEN IT WON'T BE ROBUST THE AGENCY SAYS NO SURPRISE THEREFORE THAT JAPAN HAS TAKEN UP WISHFUL THINKING THE PRESS KEEPS TRUMPETING THE NOTION OF A MASAKO EFFECT A SURGE IN FEELGOOD CONSUMER SPENDING TIED TO THE CROWN PRINCE'S MARRIAGE TO MASAKO OWADA A COMMONER IN JUNE SO FAR THE SURGE HAS BEEN A BUST AND YET SOME ECONOMISTS SAY CONSUMPTION WILL INCREASE AND PERHAPS SOONER THAN MANY PEOPLE EXPECT ROBERT FELDMAN OF SALOMON BROTHERS ASIA LTD SAYS THE NATION'S SAVINGS RATE PLATEAUED LAST YEAR AT ABOUT 155 HE SEES REAL COMPENSATION GROWTH OF ABOUT 3 OVER THE NEXT 12 MONTHS IN PART BECAUSE THE GOVERNMENT'S STIMULUS PACKAGE WILL BID UP DEMAND FOR LABOR SO WITH SAVINGS FLAT MR FELDMAN EXPECTS CONSUMPTION TO RISE 3 AND GROSS NATIONAL PRODUCT TO GROW SLIGHTLY MORE THAN 3 YOU'RE BEGINNING TO GET THE FIRST SNIFF IN THE AIR OF AN ECONOMIC RECOVERY HE SAYS ADDING THAT FEARS OF RISING UNEMPLOYMENT HAVE BEEN VERY MUCH EXAGGERATED THE FLEDGLING RECOVERY IN THE TOKYO STOCK MARKET ALSO CHEERS SOME CONSUMERS AND MANY EXPERTS ARGUE THAT THE STRONG YEN WILL EVENTUALLY WORK ITS MAGIC AND MAKE IMPORTS CHEAPER SUSUMU KATO ECONOMIST AT CS FIRST BOSTON JAPAN SAYS CONSUMPTION MAY WELL TURN UP RAPIDLY THIS FALL IF CONSUMERS THINK THAT THEIR EMPLOYERS HAVE WEATHERED THE ECONOMIC DOWNTURN STILL IT IS HARD TO FIND MUCH OPTIMISM IN THE TRENCHES WE CAN SEE ONLY SOME BRIGHTNESS IN THE MORNING SKY BUT NO DAWN YET SAYS A SPOKESMAN FOR LAOX CO AN ELECTRONICS RETAILER WE HAVE TO BE CAUTIOUS UNTIL WE ACTUALLY SEE THE SUN 9304260044 930426 BUSINESS BRIEF MR GASKET CO FIRM SAYS CALIFORNIA COURT CLEARS REORGANIZATION PLAN MR GASKET CO SAID ITS JOINT REORGANIZATION PLAN WAS CONFIRMED BY THE US BANKRUPTCY COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA THE COMPANY WHICH FILED A PETITION FOR CHAPTER 11 STATUS ON APRIL 21 1991 SAID IT WILL EMERGE FROM BANKRUPTCY PROCEEDINGS AFTER THE PLAN IS IMPLEMENTED MAY 4 BEFORE CONFIRMING THE PLAN THE COURT APPROVED THE SALE OF NEARLY ALL THE ASSETS OF MR GASKET'S PERFORMANCE GROUP TO ECHLIN INC MR GASKET SAID ECHLIN PAID ABOUT 35 MILLION IN CASH AND ASSUMED LIABILITIES ESTIMATED AT 15 MILLION MR GASKET SAID THE REORGANIZED COMPANY WILL HAVE ASSETS AND ANNUAL SALES OF MORE THAN 20 MILLION MR GASKET SAID IT WILL IMPLEMENT THE PLAN'S OPTION A WHICH CALLS FOR PAYING ITS SENIOR LENDER FIRST INTERSTATE BANCORP AND SUBORDINATED DEBT HOLDERS ABOUT 426 MILLION GENERAL UNSECURED TRADE CREDITORS WILL RECEIVE ABOUT 66 OF THEIR ALLOWED CLAIMS SHAREHOLDERS WILL RETAIN THEIR EQUITY INTERESTS WHICH ARE EXPECTED TO BE DILUTED WHEN ABOUT 16 OF NEW EQUITY IS ISSUED TO SUBORDINATED DEBT HOLDERS 9304260043 930426 BUSINESS BRIEF COMPTRONIX CORP EXAUDITOR UNDERWRITERS SETTLE SHAREHOLDER LITIGATION KPMG PEAT MARWICK AND THREE UNDERWRITERS OF COMPTRONIX CORP SAID THEY HAVE SETTLED SHAREHOLDER LITIGATION CONCERNING THE SCANDALRIDDEN COMPANY FOR 105 MILLION PEAT MARWICK THE FORMER AUDITOR FOR COMPTRONIX AND THE UNDERWRITERS OF A COMPTRONIX DEBENTURE OFFERING MORGAN KEEGAN & CO ROBINSONHUMPHREY CO AND STEPHENS INC AGREED TO PAY 105 MILLION CASH INTO AN ESCROW ACCOUNT FOR SHAREHOLDERS TO RESOLVE CLAIMS THAT THEY FAILED TO DETECT FRAUD OR PERFORM ADEQUATE DUE DILIGENCE AT COMPTRONIX THE ELECTRONIC PARTS MANUFACTURER IN GUNTERSVILLE ALA DISCLOSED LAST NOVEMBER THAT ITS SENIOR MANAGEMENT HAD INFLATED EARNINGS FOR YEARS THE SETTLEMENT IS SUBJECT TO APPROVAL BY A FEDERAL JUDGE IN ALABAMA PEAT MARWICK AND THE UNDERWRITERS DENY WRONGDOING THEY HAVE PREVIOUSLY SAID THAT THEY ARE INNOCENT PARTIES WHO WERE DUPED BY MANAGEMENT'S SCHEME 9304260042 930426 BUSINESS BRIEF HORIZON RESOURCES CORP MINING REFINING OPERATIONS OF ONLY UNIT ARE SUSPENDED HORIZON RESOURCES CORP GOLDEN COLO SAID IT SUSPENDED THE MINING AND REFINING OPERATIONS OF ITS ONLY SUBSIDIARY HORIZON POTASH CORP BECAUSE OF DEPRESSED PRICES FOR POTASH JOHN E WATSON CHAIRMAN AND CHIEF EXECUTIVE OF THE MINERAL RESOURCES CONCERN BLAMED SURGING COMPETITION FROM LOWPRICED POTASH EXPORTED FROM RUSSIA AND OTHER REPUBLICS THAT WERE PART OF THE FORMER SOVIET UNION HE ALSO SAID AN UNUSUALLY RAINY SPRING IN ARKANSAS LOUISIANA MISSOURI AND EAST TEXAS HAS DELAYED PLANTING REDUCING AGRICULTURAL DEMAND FOR POTASH MR WATSON SAID OPERATIONS WILL REMAIN SUSPENDED UNTIL MARKET CONDITIONS IMPROVE IF THIS PERSISTS LONG HE SAID OBVIOUSLY THIS WILL BE VERY DIFFICULT FOR US HE SAID THE SHUTDOWN WILL AFFECT ABOUT 280 EMPLOYEES 9304260041 930426 BUSINESS BRIEF USG CORP BANKRUPTCY COURT APPROVES DEBTFOREQUITY PROPOSAL USG CORP SAID THE DELAWARE BANKRUPTCY COURT CONFIRMED THE PREPACKAGED BANKRUPTCY PLAN USG FILED IN MIDMARCH THE CHICAGO BUILDINGPRODUCTS CONCERN SAID IT EXPECTS TO EMERGE FROM CHAPTER 11 REORGANIZATION MAY 6 UNDER USG'S DEBTFOREQUITY PLAN ITS 27 BILLION OF DEBT WILL BE TRIMMED TO 16 BILLION IN EXCHANGE FOR THAT FORGIVENESS AN 82 STAKE WILL GO TO HOLDERS OF USG'S 13 1/4 SENIOR SUBORDINATED DEBENTURES A 15 STAKE TO HOLDERS OF ITS 16 JUNIOR SUBORDINATED PAYINKIND DEBENTURES AND A 3 STAKE TO ITS CURRENT SHAREHOLDERS PREPACKAGED PLANS ALLOW A COMPANY TO MOVE THROUGH BANKRUPTCY COURT FASTER BECAUSE IT ENTERS PROCEEDINGS HAVING ALREADY WON THE AGREEMENT OF MOST CREDITORS USG CHOSE THE CHAPTER 11 FILING ONLY AFTER ARDUOUS OUTOFCOURT EFFORTS TO RESTRUCTURE ITS DEBT THE TWOYEAR RESTRUCTURING PROCESS HAS FINALLY COME TO AN END SAID EUGENE B CONNOLLY CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER HE SAID THAT WITH A SUPPORTABLE DELEVERAGED CAPITAL STRUCTURE WE CAN NOW TURN OUR FULL ATTENTION TO CAPITALIZING ON THE RECOVERY CURRENTLY UNDER WAY IN THE CONSTRUCTION INDUSTRY 9304260040 930426 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 3/4 LOW 2 7/8 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 303 30 TO 89 DAYS 305 90 TO 119 DAYS 306 120 TO 149 DAYS 307 150 TO 179 DAYS 308 180 TO 259 DAYS 315 260 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 308 30 DAYS 310 60 DAYS 310 90 DAYS CERTIFICATES OF DEPOSIT 258 ONE MONTH 262 TWO MONTHS 266 THREE MONTHS 275 SIX MONTHS 293 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 305 ONE MONTH 308 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 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 1/4 3 1/8 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 19 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 282 13 WEEKS 296 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 704 60 DAYS 715 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 709 60 DAYS 719 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 9304260039 930426 OTC FOCUS PROMOTER ISN'T BASHFUL ABOUT THIS FILM BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTORS ARE BETTING ON THE STOCK OF 1ST NATIONAL FILM CORP TO FLOURISH HAPPILY EVER AFTER THAT'S THE TITLE OF THE COMPANY'S 74MINUTE ANIMATED MOVIE FEATURING SNOW WHITE AND THE SEVEN DWARFELLES SET TO BE RELEASED MEMORIAL DAY WEEKEND THE STOCK WHICH TRADES ON THE NASDAQ MARKET CLOSED AT 8 7/16 FRIDAY NOT A BAD RATE OF RETURN FOR A PENNY STOCK THAT FIRST WENT PUBLIC IN 1989 FOR ABOUT TWO CENTS A SHARE ON THE THINLY TRADED PINK SHEETS THIS MONTH ALONE 1ST NATIONAL'S STOCK PRICE HAS SOARED 65 LARGELY BECAUSE OF THE COMPANY'S HIGHPITCHED PROMOTION OF ITS NEW FLICK THE COMPANY'S PROMOTION OF ITS OWN STOCK IS EQUALLY UNABASHED AT THIS RATE THE STOCK IS GOING TO THE MOON THE COMPANY SAID IN A PROMOTION SHEET IT RECENTLY FAXED TO BROKERS WHEN 14 MILLION SHARES TRADED THAT'S MORE THAN SIX TIMES ITS NORMAL VOLUME BUT SOME SKEPTICAL INVESTORS SAY THAT 1ST NATIONAL'S STOCK SHOULD RETURN TO EARTH AFTER ALL THE AUSTIN TEXAS COMPANY HASN'T POSTED A PROFIT SINCE ITS INCEPTION IT REPORTED A NET LOSS OF 978161 OR 17 CENTS A SHARE IN ITS FISCAL SECOND QUARTER ENDED IN DECEMBER WHICH WIDENED FROM A LOSS OF 224406 OR FIVE CENTS A SHARE A YEAR EARLIER AND THE COMPANY HAD A LOSS OF 12 MILLION OR 25 CENTS A SHARE FOR THE FISCAL YEAR ENDED JUNE 30 EVEN ITS AUDITOR HAS DOUBTS THE COMPANY IS VERY DEPENDENT UPON THE NATIONAL RELEASE OF THE FILM HAPPILY EVER AFTER' SAYS TAYLOR & CO ITS SALT LAKE CITY ACCOUNTANT IN 1ST NATIONAL'S JUNE 1992 YEAREND REPORT IN ITS DECEMBER QUARTERLY REVIEW THE AUDITOR REITERATED THAT WARNING SAYING THERE WAS SUBSTANTIAL DOUBT ABOUT THE COMPANY'S ABILITY TO CONTINUE IN EXISTENCE AS AN ONGOING CONCERN THE COMPANY IS DEPENDING ON SNOW WHITE AND THE DWARFELLES THE CUDDLY COUSINS OF THE ORIGINAL DWARFS TO BAIL IT OUT OF THE RED RICK MAESTRE THE COMPANY'S DIRECTOR OF INVESTOR RELATIONS OFFERS THIS OPTIMISTIC PREDICTION CONSERVATIVELY SPEAKING WE COULD GROSS 30 MILLION TO 50 MILLION AT THE BOX OFFICE RICK BUSBY 1ST NATIONAL'S EXECUTIVE VICE PRESIDENT DISMISSES THE AUDITOR'S STATEMENT SIMPLY AS A REQUIREMENT FOR DEVELOPMENTSTAGE COMPANIES HE PREDICTS THAT IN ADDITION TO BOX OFFICE RECEIPTS 1ST NATIONAL ALSO STANDS TO MAKE MONEY WITH OUR LICENSING AND MERCHANDISING RIGHTS TO THE FILM BECAUSE THE COMPANY ONLY PAID ABOUT 15 MILLION FOR THE MOVIE MR BUSBY SAYS THAT AFTER COSTS SUCH AS MARKETING AND ADVERTISING IT WILL BREAK EVEN IF THE MOVIE MAKES 15 MILLION BUT EVEN 15 MILLION WON'T BE EASY TO MAKE ANALYSTS SAY THE FILM'S OPENING IS COMING AT A TOUGH TIME IT'S A REMAKE WITH AN UNKNOWN COMPANY THEY PROBABLY DON'T HAVE CLOUT WITH THEATER OWNERS SAYS LISBETH BARRON AN ENTERTAINMENT ANALYST WITH SG WARBURG IT'S HARD TO BELIEVE THEY ARE GOING TO DRAW LARGE AUDIENCES AT THIS TIME WHEN THERE ARE A LARGE NUMBER OF BIG COMMERCIAL MOVIES OUT THERE IT'S GOING TO BE DIFFICULT FOR THEM TO MAKE 15 MILLION YET THE MARKET VALUE OF 1ST NATIONAL HAS RISEN TO 72 MILLION ACCORDING TO THE COMPANY'S COUNT OF 85 MILLION SHARES OUTSTANDING ANALYSTS SAY THAT'S A HEFTY VALUATION FOR A COMPANY WITH ONLY 13015 IN CASH AND TOTAL ASSETS OF 36 MILLION ON ITS BOOKS AS OF DECEMBER HAPPILY EVER AFTER FEATURES VOICES OF SUCH CELEBRITIES AS DOM DELUISE PHYLLIS DILLER AND ZSA ZSA GABOR BUT IF HAPPILY EVER AFTER SOUNDS A LOT LIKE THAT DISNEY CLASSIC SNOW WHITE AND THE SEVEN DWARFS DON'T COUNT ON IT DISNEY DIDN'T PRODUCE HAPPILY EVER AFTER' AND IN NO WAY ENDORSES IT SAYS TOM DEEGAN A SPOKESMAN FOR WALT DISNEY CO WHICH IS PLANNING TO RERELEASE SNOW WHITE AND THE SEVEN DWARFS THIS SUMMER HE BRAGS THAT THE FILM WILL EVEN BE VIEWED BY THE FIRST LADY DO YOU WANT TO COME TO OUR WORLD PREMIER AT THE WHITE HOUSE WITH HILLARY AND EVERYONE MR MAESTRE ASKS THREE WHITE HOUSE REPRESENTATIVES DECLINED TO COMMENT SAYING THEY NEVER HEARD OF HAPPILY EVER AFTER MEANWHILE 1ST NATIONAL HAS BEEN TOUTING ITS NEW MOVIE AND ITS STOCK IN AN AD ON THE CNBC CABLETELEVISION CHANNEL QUALIFIED INVESTORS CALL THIS NUMBER NOW TO RECEIVE A VIDEO PREVIEW AND A NEWSLETTER ON THIS EXCITING NASDAQ GROWTH STOCK SYMBOL FNAT AN ANNOUNCER SAYS AT THE END OF THE MINUTELONG MOVIE AD A TOLLFREE PHONE NUMBER FLASHES ON THE SCREEN AGAINST THE BACKDROP OF SNOW WHITE AND HER TINY PALS BROKERS SAY VIEWERS ARE RUSHING TO THEIR PHONES THREE WEEKS AGO THE COMPANY STARTED HEAVILY PROMOTING THE CAMPAIGN ON CNBC AND IT'S ATTRACTED A LOT OF RETAIL BUYING SAYS STEVE NAREMORE A VICE PRESIDENT AT WINE INVESTMENTS INC A REGIONAL BROKERAGE FIRM IN HOUSTON THAT MAKES A MARKET IN THE STOCK BUT THERE ISN'T MUCH INSTITUTIONAL BUYING MR NAREMORE CONCEDES BUT JUST AS SMALL INVESTORS ARE LOADING UP MILTON VERRET 1ST NATIONAL'S PRESIDENT IS SELLING HE HAS GOTTEN RID OF SOME 450000 SHARES SINCE FEBRUARY THE COMPANY SAYS MR VERRET STILL HOLDS ABOUT 27 MILLION SHARES THE REASON FOR THE PRESIDENT'S SALES TO EXERCISE OPTIONS AND FOR TAX CONSEQUENCES 1ST NATIONAL'S MR BUSBY SAYS THIS ISN'T THE FIRST TIME SNOW WHITE'S DWARFELLES TRIED TO MAKE A DEBUT HAPPILY EVER AFTER WAS PROMOTED THROUGH NEWS RELEASES IN THE SUMMERS OF 1991 AND 1992 MR MAESTRE SAYS THAT ALTHOUGH THE COMPANY PLANNED TO RELEASE THE MOVIE AT THOSE TIMES IT WAS NEVER OFFICIALLY SCHEDULED OR FORMALLY BOOKED HE ADDS WE COULDN'T PUT TOGETHER A DEAL WITH A DISTRIBUTOR AT THAT TIME THIS YEAR 1ST NATIONAL FILM IS TAKING CARE OF ITS OWN DISTRIBUTION WE WERE NOT ABLE TO STRUCTURE AN ARRANGEMENT FAVORABLE FOR OUR SHAREHOLDERS MR MAESTRE SAYS A DISTRIBUTION COMPANY WOULD TAKE TOO MUCH OF THE REVENUES AND WE WOULD NOT ALLOW THAT TO HAPPEN THIS WAY ALL THE MONEY GOES STRAIGHT TO OUR BOTTOM LINE RISING INTEREST RATES AND NERVOUSNESS ABOUT POSSIBLE US INTERVENTION IN BOSNIA SUNK THE OVERTHECOUNTER MARKET THE NASDAQ COMPOSITE INDEX DROPPED 510 OR 077 TO 65841 DECLINING ISSUES OUTNUMBERED ADVANCERS 1417 TO 1262 ON TOTAL VOLUME OF 2434 MILLION SHARES DOWN FROM THURSDAY'S 2638 MILLION SHARES SEVERAL LARGE TECHNOLOGY STOCKS SLIPPED INTEL DROPPED 3 1/4 TO 92 3/4 MICROSOFT SLID 1 7/8 TO 81 3/8 APPLE COMPUTER EASED 3/4 TO 49 1/4 AND DELL COMPUTER FELL 2 3/8 TO 28 ELSEWHERE SEQUENT COMPUTER SYSTEMS ROSE 1 1/4 TO 19 ON THURSDAY THE BEAVERTON ORE COMPANY POSTED FIRSTQUARTER EARNINGS OF 12 CENTS A SHARE UP FROM FOUR CENTS A SHARE A YEAR EARLIER SEQUENT MAKES SYMMETRICAL MULTIPROCESSING COMPUTER SYSTEMS LANDMARK GRAPHICS JUMPED 1 3/8 TO 17 3/8 THE HOUSTON COMPANY REPORTED EARNINGS OF 18 CENTS A SHARE FOR ITS FISCAL THIRD QUARTER ENDED MARCH 31 A YEAR EARLIER THE COMPANY REPORTED A LOSS OF 31 CENTS A SHARE LANDMARK GRAPHICS SUPPLIES COMPUTERAIDED EXPLORATION SYSTEMS USED BY SCIENTISTS AMGEN EDGED UP 1/2 TO 39 3/4 MERRILL LYNCH & CO RAISED ITS INTERMEDIATETERM RATING TO ABOVE AVERAGE FROM NEUTRAL LATE THURSDAY THE BIOTECHNOLOGY COMPANY REPORTED FIRSTQUARTER EARNINGS OF 61 CENTS A SHARE AFTER A SIXCENTASHARE GAIN AMGEN EARNED 43 CENTS A SHARE A YEAR EARLIER 9304260038 930426 BUSINESS BRIEF WW WILLIAMS CO FIRM IS CONSIDERING A PLAN TO BECOME PRIVATE CONCERN WW WILLIAMS CO SAID IT IS CONSIDERING A TRANSACTION THAT WOULD MAKE IT A PRIVATE COMPANY JANET D GIBSON CORPORATE ATTORNEY DECLINED TO SPECIFY HOW THE COMPANY WOULD BE TAKEN PRIVATE ALTHOUGH SHE DID SAY IT WOULDN'T INVOLVE A MANAGEMENTLED BUYOUT IN THE FIRST QUARTER THE DISTRIBUTOR OF INDUSTRIAL EQUIPMENT HAD AVERAGE COMMON SHARES OUTSTANDING OF 906232 ITS STOCK CLOSED FRIDAY AT 1650 UP 250 IN NATIONAL OVERTHECOUNTER TRADING WW WILLIAMS BASED IN COLUMBUS OHIO SAID IT ENJOYS FEW BENEFITS OF BEING A PUBLIC COMPANY BUT MUST PAY ALL THE COSTS MS GIBSON IDENTIFIED THE COSTS AS THOSE ASSOCIATED WITH COMPLYING WITH SECURITIES AND EXCHANGE COMMISSION REGULATIONS THE BOARD HAS SET UP A COMMITTEE OF TWO OUTSIDE DIRECTORS A GRANT BOWEN AND JOHN F HAVENS TO STUDY THE ISSUE MS GIBSON SAID THEY ARE EXPECTED TO MAKE A REPORT TO THE BOARD IN ABOUT ONE MONTH 9304260037 930426 BUSINESS BRIEF SCHERINGPLOUGH CORP NET FELL 33 IN 1ST PERIOD DUE TO ACCOUNTING CHARGE SCHERINGPLOUGH CORP REPORTED A 33 DROP IN FIRSTQUARTER EARNINGS DUE TO A ONETIME CHARGE CAUSED BY AN ACCOUNTING CHANGE RELATED TO RETIREMENT BENEFITS BEFORE THE 942 MILLION CHARGE EARNINGS WERE UP 18 DRIVEN BY OVERSEAS SALES GROWTH THE MADISON NJ PHARMACEUTICAL CONCERN SAID NET INCOME WAS 1293 MILLION OR 65 CENTS A SHARE COMPARED WITH 1933 MILLION OR 96 CENTS A SHARE IN THE YEAREARLIER PERIOD SALES ROSE 7 IN THE FIRST QUARTER TO 109 BILLION INTERNATIONAL SALES GREW 17 ALTHOUGH THEY WERE REDUCED SIX PERCENTAGE POINTS BY CURRENCY TRANSLATIONS SALES OF INTRON A THE COMPANY'S ALPHA INTERFERON GREW IN JAPAN AS A TREATMENT FOR HEPATITIS C DOMESTIC PHARMACEUTICAL SALES ROSE 5 IN THE FIRST QUARTER SALES OF THE COMPANY'S CONSUMER PRODUCTS DECLINED 4 DUE TO INCREASINGLY COMPETITIVE MARKETS FOR VAGINALANTIFUNGAL AND COLDANDALLERGY PRODUCTS 9304260036 930426 BUSINESS BRIEF AMSOUTH BANCORP ACCORD IS SIGNED TO ACQUIRE MIDSTATE FEDERAL SAVINGS AMSOUTH BANCORP BIRMINGHAM ALA SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE MIDSTATE FEDERAL SAVINGS BANK OF OCALA FLA FOR ABOUT 982 MILLION IN CASH AND STOCK UNDER THE TERMS OF THE AGREEMENT AMSOUTH WILL PAY 08965 COMMON SHARE PLUS 13 IN CASH FOR EACH COMMON SHARE OF MIDSTATE AMSOUTH SAID IT PLANS TO ISSUE ABOUT 19 MILLION OF ITS 437 MILLION COMMON SHARES OUTSTANDING IN THE TRANSACTION THE CASH AMOUNT IN THE TRANSACTION MAY INCREASE BASED ON THE CLOSING PRICE OF AMSOUTH COMMON STOCK IN ORDER TO PROVIDE UNDER CERTAIN CIRCUMSTANCES A TOTAL OF AT LEAST 4337 FOR EACH MIDSTATE SHARE IN NATIONAL OVERTHECOUNTER TRADING FRIDAY MIDSTATE SURGED 475 TO 3975 AMSOUTH ROSE 25 CENTS TO 33875 IN NEW YORK STOCK EXCHANGE TRADING THE ACQUISITION WHICH IS TO BE ACCOUNTED FOR AS A PURCHASE IS EXPECTED TO BE COMPLETED THIS YEAR PENDING APPROVAL BY REGULATORS AND MIDSTATE SHAREHOLDERS AMONG OTHER THINGS MIDSTATE REPORTED ASSETS AT MARCH 31 OF 7517 MILLION INCLUDING MIDSTATE'S ASSETS AND THOSE OF OTHER PENDING BANK ACQUISITIONS AMSOUTH SAID IT EXPECTS TO HAVE TOTAL ASSETS OF ABOUT 126 BILLION 9304260035 930426 COLLAPSE OF DOW CHEMICAL'S CZECH DEAL SHOWS PITFALLS OF EASTWEST NEGOTIATIONS BY JANET GUYON STAFF REPORTER OF THE WALL STREET JOURNAL MEMBERS OF THE CZECH NEGOTIATING TEAM COULD HARDLY BELIEVE THEIR EARS AFTER MONTHS OF TOUGH TALKS DOW CHEMICAL CO WAS BALKING AT CLOSING A DEAL TO BUY ONE OF CZECH REPUBLIC'S PRIZE CHEMICAL COMPANIES WHEN ALL THAT SEEMED LEFT WAS TO DOT SOME I'S AND CROSS SOME T'S ON THE FINAL AGREEMENT THE DOW MEN SAID THEY WANTED TO SLASH THE PRICE BY SOME TWOTHIRDS PEOPLE'S TEETH HIT THE TABLE THEIR JAWS DROPPED SO FAST SAYS A BANKER WHO PARTICIPATED IN THE MEETING THAT WAS NEARLY A YEAR AGO IT TOOK MANY MORE MONTHS UNTIL NOVEMBER FOR DOW AND CHEMICKE ZAVODY SOKOLOV TO SEVER TALKS SOKOLOV STILL OWNED BY THE CZECH GOVERNMENT IS LOOKING FOR MONEY AND A WAY TO GO PRIVATE CZECH OFFICIALS ARE STILL STEAMING ABOUT THE AMERICAN CHEMICAL COMPANY THAT THEY SAY ACTED IN BAD FAITH AND SOME SAY THE GOVERNMENT SHOULD HAVE SUED DOW SO WHAT REALLY HAPPENED ACCORDING TO THOSE INVOLVED THE DOW DEAL STILL HAD MANY OF THE DOWNSIDES OF BUSINESS TRANSACTIONS IN THE FORMER COMMUNIST COUNTRIES THERE WERE SLOWMOVING BUREAUCRATS AND POLITICIANS A MERCURIAL WESTERN INVESTOR UNCLEAR BUSINESS ASSUMPTIONS A NAIVE TARGET COMPANY AND POLITICAL UNCERTAINTY TO BLAME ABOVE ALL THE DEAL'S DEMISE ILLUSTRATES THE DIFFICULTY OF WEST INVESTING WITH EAST AND EAST NEGOTIATING WITH WEST THE EXPERIENCE OF NEGOTIATING IN THESE REPUBLICS IS HORRENDOUS SAYS PERCY BARNEVIK PRESIDENT AND CHIEF EXECUTIVE OF ABB ASEA BROWN BOVERI WHICH HAS BEEN ACTIVE IN 12 COUNTRIES SOMETIMES IT TAKES TWO YEARS YOU CAN AGREE TO A DEAL THREE TIMES AND THEN HAVE GOVERNMENT CHANGES WE CONTINUE BECAUSE ONCE WE SUCCEED AND GET 80 OR 100 OF A COMPANY WE HAVE A VERY GOOD EXPERIENCE ASEA BROWN BASED IN SWITZERLAND HAS INTERESTS THAT INCLUDE POWER SYSTEMS AND INDUSTRIAL EQUIPMENT DOW SIGNED AN AGREEMENT IN PRINCIPLE WITH SOKOLOV AND THE CZECH MINISTRY OF INDUSTRY IN NOVEMBER 1991 AFTER A HOTLY CONTESTED TENDER OFFER RUN BY THE LONDON OFFICE OF ARTHUR D LITTLE ADL AND LAW FIRM WHITE & CASE IN PRAGUE ACCORDING TO THE DEAL MAKERS THE BIDS WERE BASED IN PART ON PROJECTIONS OF SOKOLOV'S OPERATIONS DEVELOPED BY ADL THAT INCLUDED ASSUMPTIONS SUCH AS NO INFLATION NO CHANGES IN EXCHANGE RATES AND NO ALLOWANCE FOR THE FINANCIAL COSTS OF CAPITAL EXPANSION PARTICIPANTS DIFFER ON THE PRECISE TERMS OF THIS AGREEMENT BUT DOW VALUED THE ENTIRE EQUITY OF SOKOLOV AT ABOUT 68 MILLION AND PLANNED TO INVEST AN INITIAL 248 MILLION FOR 365 INCREASING ITS OWNERSHIP PERCENTAGE OVER TIME TO OVER 90 AND AGREEING TO MAKE SUBSTANTIAL CAPITAL INVESTMENTS THE TOTAL COST ULTIMATELY WOULD HAVE REACHED SOME 250 MILLION MAKING IT ONE OF THE BIGGEST DEALS IN CZECH REPUBLIC THEN BEGAN A LONG PERIOD OF NEGOTIATING TOWARD A BINDING AGREEMENT IN THE MIDST OF THESE DISCUSSIONS A LOSING BIDDER FROM THE FIRST ROUND FRANCE'S STATEOWNED ELF AQUITAINE FILED A NEW PRIVATIZATION PLAN FOR SOKOLOV UNDER RULES STILL EVOLVING FOR PRIVATIZATION THE CZECH MINISTRY OF PRIVATIZATION WAS OBLIGATED TO REVIEW THE ELF PLAN AGAINST THE DOW AGREEMENT SO DOW WAS FORCED TO RENEGOTIATE IT DEFEATED ELF AGAIN IN THE SPRING OF 1992 THIS TIME VALUING ALL OF SOKOLOV AT ABOUT 80 MILLION ACCORDING TO THE BANKERS IT WAS THAT PRICE TAG ARRIVED AT AFTER INSPECTING FIGURES ADL PROVIDED TO ALL POTENTIAL BIDDERS THAT DOW WOULD LATER DECIDE WAS TOO HIGH AFTER DOING ITS OWN DUE DILIGENCE ADL INSISTS THE COMPANY WAS AND IS PROFITABLE AND IS IN MARKETS THAT ARE GROWING LAST YEAR IT HAD REVENUE OF 1615 BILLION CZECH KORUNAS ABOUT 57 MILLION AND ASSETS VALUED AT 3955 BILLION KORUNAS EMPLOYING ABOUT 1250 ITS BIGGEST PRODUCT IS ACRYLIC ESTERS WIDELY USED IN THE TEXTILE INDUSTRY AND ALSO USED AS COATINGS IN THE PAPER LEATHER AND WOOD INDUSTRIES IT ALSO MAKES HYDROGEN PEROXIDE WHICH IS BECOMING NEWLY POPULAR AS AN ENVIRONMENTALLY FRIENDLY ALTERNATIVE TO CHLORINE FOR BLEACHING PAPER YET SOME SIX WEEKS AFTER IT WON SOKOLOV FOR THE SECOND TIME DOW SUDDENLY DECIDED AT THAT FATEFUL MAY 1992 MEETING THAT SOKOLOV'S TOTAL EQUITY WAS ONLY WORTH 23 MILLION IT DECIDED THE AMOUNT OF CAPITAL INVESTMENT REQUIRED WAS GREATER THAN IT THOUGHT SO THE PURCHASE PRICE HAD TO BE REDUCED GOVERNMENT REPRESENTATIVES AND SOKOLOV'S ADVISERS DON'T BELIEVE THESE EXPLANATIONS THEY THINK THE LENGTH OF THE PROCESS ALLOWED DOW TO FIND A CHEAPER SOURCE OF ACRYLIC ESTERS SOKOLOV'S MAIN PRODUCT ALTERNATIVELY SAYS ONE BANKER INVOLVED UPPER MANAGEMENT AT DOW JUST DIDN'T REALIZE HOW FAR NEGOTIATIONS HAD PROGRESSED UNTIL TOO LATE WITH NO DOW SOKOLOV IS LEFT LOOKING FOR SOME TENS OF MILLIONS OF DOLLARS TO PAY FOR ITS NEW ACRYLIC ESTER LINE AS WELL AS OPPORTUNITIES TO SELL ITS PRODUCTS IN THE WEST BEFORE THE 1989 REVOLUTION IT WOULD HAVE SIMPLY GOTTEN A CHECK FROM THE STATE BANK AND SOLD ITS PRODUCTS TO OTHER EASTERN COUNTRIES NOW BECAUSE OF THE DISORDERED STATE OF THE BANKING SYSTEM THERE'S NO LONGTERM CREDIT FOR EVEN THE MOST WORTHY CZECH COMPANY WITHOUT A GOVERNMENT GUARANTEE 9304260034 930426 LEISURE & ARTS A TASTE OF CHILDHOOD BY BRIGID GRAUMAN MICKLETON ENGLAND THE SCENE IS MERRIE OLDE ENGLAND SILVER CUTLERY GLISTENS ON WHITE DAMASK TABLECLOTHS FROM WITHIN A MANSION HOUSE BUILT OF MELLOW COTSWOLD STONE THE VIEW OF BROAD MEADOWS FADES IN THE FALLING LIGHT AS DINNER IS SERVED IN A SETTING THAT IS QUINTESSENTIALLY ENGLISH TENTATIVE APPLAUSE A FEW CLAPS A FEEBLE HURRAH OF SUPPORT RIOTOUS TABLEPOUNDING BELLOWS OF APPROVAL A STOLID PUDDING OF A WOMAN IN A FLOWERED DRESS WEARING GLASSES AND TIGHT WHITE CURLS SMILES FOR THE FIRST TIME AND NODS THE PROCESSION OF PUDDINGS MAKES ITS WAY INTO THE CARPETED SOFTLY LIT ROOM HEAVY FIRM AND PROUDLY RIPPLING LIKE A LINEUP OF BODY BUILDERS KITCHEN MAIDS IN HEAD SCARVES AND FRILLY WHITE APRONS LAY OUT THE COVERED SILVER SALVERS ON THE HOT PLATES BESIDE THE JAM SYRUP AND CUSTARD THEY REMOVE THE COVERS AND LIKE OVERHEATED ENGINES THE PUDDINGS SUDDENLY RELEASE GREAT CLOUDS OF STEAM THE SWEET SMELL OF SYRUP WAFTS THROUGH THE DINING ROOM OUTSIDE NIGHT HAS FALLEN ON THE LATE 20TH CENTURY INSIDE 60 ENGLISH MEN AND WOMEN ARE RETURNING TO CHILDHOOD NOT HAVING BEEN RAISED ON THE PUDDING ISLE MY KNOWLEDGE OF THE DISH IS REMOTE LIMITED TO MY LONDONBRED MOTHER'S OCCASIONAL BOUTS OF NOSTALGIA AND TO MEMORIES FROM MY FAVORITE CHILDHOOD AUTHOR MAGICAL TURNOFTHECENTURY E NESBIT NOT ONLY DID HER NAUGHTY VICTORIAN CHILDREN HAVE SUCH WONDERFUL NAMES AS CYRIL AND ANTHEA BUT THEY WERE FED LEMON SUET PLUM RICE AND TAPIOCA PUDDINGS AND ONLY AS A SPECIAL TREAT FOR THE SAD FACT IS THAT PUDDINGS ARE VERY MUCH A THING OF THE PAST EVEN IF THEY ARE STAGING A BRAVE COMEBACK AT THREE WAYS HOTEL HERE TWICE A MONTH FROM SEPTEMBER TO MAY PUDDINGHEARTED MEN AND WOMEN FROM ALL OVER BRITAIN AND FURTHER AFIELD FLOCK TO THE PUDDING CLUB IN THIS QUIET COTSWOLD VILLAGE EIGHT MILES FROM STRATFORDUPONAVON TO EAT A SWEET HEAVY AND HOT FOOD THAT SEEMS TO REMIND THEM ALL OF THEIR MOSTLY MISERABLE DAYS AT BOARDING SCHOOL THE PUDDING RENAISSANCE BEGAN SEVEN YEARS AGO BY THE TIME THE CLUB'S 100TH MEETING WAS CELEBRATED IN A PUDDINGISH WAY IN DECEMBER A TOTAL OF 6000 VISITORS HAD TURNED UP AND CONSUMED 25000 HELPINGS OF PUDDING PLUS 2500 PINTS OF CUSTARD TO AMERICANS THE WORD PUDDING MAY EVOKE SOMETHING SOFT AND MILKY BUT THE REAL THING IS MUCH MORE LIKE A MUFFIN FILLED WITH FRUIT AND SMOTHERED IN CUSTARD TO THE BRITISH AND IRISH PUDDING MEANS SOMETHING VERY PRECISE THE EARLIEST PUDDINGS ACCORDING TO ONE RELIABLE ENCYCLOPEDIA WERE 14THCENTURY SAUSAGES EVOLVING OVER THE NEXT 200 YEARS THEY GRADUALLY TURNED INTO A FORM OF DESSERT BOILED IN A BAG OR CLOTH THEN A BIT MORE SOPHISTICATED THE PUDDING WAS PLACED IN A BUTTERED BOWL COVERED WITH A CLOTH AND STEAMED FINALLY IN OUR OWN TIMES IT IS OFTEN BAKED AND CHILLED BUT INVARIABLY CUSTARDCOATED WITH THAT MIXTURE OF EGGS SUGAR AND SCALDED MILK ACCORDING TO JEAN AND KEITH TURNER THE CHEERFUL COUPLE WHO RUN THE HOTEL AND FOUNDED THE PUDDING CLUB WHAT ALL PUDDINGS HAVE IN COMMON IS THAT THEY TAKE A LONG TIME TO COOK ARE WARM VERY FILLING INEXPENSIVE AND KEEP THE CHILDREN QUIET THE FIRST PUDDING MEETING WAS SOMETHING OF A JOKE AMONG FRIENDS BUT SINCE THAT EVENING THE SEMIMONTHLY PIGOUT HAS BECOME AN INSTITUTION WITH SOLEMN TALK NOW ABOUT COPYRIGHTS TRADEMARKS AND FRANCHISES THE TURNERS' FIRST MAJOR EXPOSURE CAME WHEN THEY WERE INTERVIEWED ON THE BBC'S FOOD AND DRINK PROGRAM AND WERE FLOODED WITH RECIPES FOLKLORE AND ASSORTED PUDDINGOLOGY NOWADAYS PUDDINGLOVING VISITORS HAVE TO BOOK SIX MONTHS AHEAD IN THE KITCHEN BEFORE THE FEAST A ROLYPOLY COOK WHO GREW UP ON PUDDIN'S RIFFLES THROUGH A FILE OF RECIPES SENT IN BY CLIENTS ALL SUGGESTIONS ARE TRIED AND TASTED AND MANY OF THEM WIND UP REGULARLY ON THE MENU SHE FLICKS SILVER FOIL OFF A GINGER SYRUP SNAPS OPEN A STEEL CYLINDER AND POKES AT A BULLETHARD SUET PASTRY AND EXPLAINS WHY MANY GUESTS DON'T GET THROUGH THE CHOICE OF SEVEN PUDDINGS IT'S A CASE OF IF YOU DRINK TOO MUCH YOU CAN'T EAT IT ALL THE PUDDING CLUB DIDN'T TURN OUT TO BE QUITE WHAT I HAD THOUGHT I WAS SOMEHOW EXPECTING A TROOP OF MIDDLEAGED MEN EITHER THIN OR PLUMP BUT CERTAINLY GETTING ON IN YEARS DRESSED IN PINSTRIPE SUITS WEARING THE EXPRESSIONS OF GREEDY SMALL BOYS I HAD IMAGINED A WORLD REDOLENT WITH BITTERSWEET MEMORIES OF UNHEATED NURSERIES AND STRICT NANNIES INSTEAD AFTER HOVERING IN THE CROWDED LOUNGE WITH A GLASS OF SHERRY I FOLLOWED A GROUP OF YOUNGISH MEN IN BOW TIES AND WOMEN IN NECKLACES AND HIGH HEELS INTO A DINING ROOM SCATTERED WITH TABLES THE MOOD WAS ALTOGETHER COZY AND JOLLY HERE WAS A CROWD DETERMINED TO ENJOY A FRIENDLY FRIDAY NIGHT OUT AN OLDER BUSINESSMAN AT MY TABLE SAID HE HAD BEEN ATTRACTED BY FOND RECOLLECTIONS OF SCHOOL PUDDINGS BUT THREE OF THE FOUR WOMEN BELONGED TO WEIGHT WATCHERS AND WERE MORE CONCERNED ABOUT BREAKING THE LAW SO WHEN THE MAIN COURSE OF EITHER VENISON SALMON PIE OR BEEF STROGANOFF HAD BEEN DISPENSED WITH AMID APPRECIATIVE EXCLAMATIONS THE QUEUE FOR THE PUDDINGS BEGAN FORMING BACK AT THE TABLE THE BUSINESSMAN TUCKED VIGOROUSLY INTO HIS JAM ROLY POLY BUT EXPRESSED DISAPPOINTMENT THAT IT WAS MORE SUETY THAN JAMMY HE CONCLUDED THAT THE SCHOOL PUDDING WAS BETTER TALK PROCEEDED SMOOTHLY FROM WHETHER TO CONFESS AT WEIGHT WATCHERS THE FOLLOWING WEDNESDAY SOME WOULD SOME WOULDN'T TO THE WEATHER NICE TO LOATHSOME ANIMALS SNAKES SLUGS SPIDERS AS FOR THE PUDDINGS THE MOOD OVERALL WAS MORE GUILT THAN NOSTALGIA MORE TRANSGRESSION THAN GRATIFICATION ONE YOUNG WOMAN WAS REPORTED TO HAVE BEEN ACTIVELY ILL THE NEXT MORNING IN THE DINING ROOM SITTING WITH THE TURNERS OVER GRILLED KIPPERS AND TOAST WE ALL CONCLUDED THAT THE RECESSION HAD UNDOUBTEDLY CONTRIBUTED TO THE URGE FOR SOMETHING SWEET WARM AND HEAVY THAT BELONGED TO A SAFE PAST WHEN MUMS STILL STAYED AT HOME LIFE WAS ALL STEADY ROUTINE AND NO ONE SPOKE OF THE LAST DAYS OF ENGLAND MS GRAUMAN IS EDITOR OF THE BULLETIN THE ENGLISHLANGUAGE NEWS WEEKLY IN BRUSSELS 9304260033 930426 REVIEW & OUTLOOK EDITORIAL ASIDES CHOOCHOO CHARGE SACRAMENTO HAS ONE OF THE NATION'S LESSER USED LIGHTRAIL SYSTEMS RIDERSHIP ON THE 18MILE SYSTEM IS 29 OF WHAT WAS FORECAST AND AS A RESULT THE TRANSIT AGENCY CAN'T EVEN GET ENOUGH LOCAL FUNDING TO QUALIFY FOR A FEDERAL MATCH BUT THE LOCAL SCHEMERS HAVE A BRAINSTORM MERGE THE TRAINS WITH THE LOCAL PUBLICLY OWNED ELECTRIC UTILITY WHICH OF COURSE HAS A BIG REVENUE BASE AND IS EMINENTLY BONDABLE RATEPAYERS CAN THEN JOIN TAXPAYERS IN SUBSIDIZING THE SILLY THING ANOTHER CASE HISTORY OF PUBLIC OFFICIALS REINVENTING GOVERNMENT 9304260032 930426 WHO'S NEWS FERRO CORP FERRO CORP CLEVELAND WERNER F BUSH AND HECTOR R ORTINO WERE ELECTED TO THE BOARD OF THIS CONCERN WHOSE CORE BUSINESS IS MAKING COATINGS COLORS CERAMICS CHEMICALS AND PLASTICS FOR PRODUCTS RANGING FROM APPLIANCES TO TOYS MR BUSH 53 IS SENIOR VICE PRESIDENT COATINGS COLORS AND CERAMICS MR ORTINO 50 IS SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER THE ELECTIONS BRING THE NUMBER OF DIRECTORS TO 14 FROM 12 9304260031 930426 WHO'S NEWS HOGAN SHIFTS COURSE AT HOME SHOPPING WITH EMBATTLED SPEER STILL AT THE HELM BY MARK ROBICHAUX AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK WHEN HE ARRIVED TWO MONTHS AGO TO ASSUME COMMAND OF HOME SHOPPING NETWORK INC GERALD HOGAN MUST HAVE FELT LIKE A PARATROOPER LANDING IN A CROSSFIRE IN RECENT MONTHS CHAIRMAN ROY SPEER AND OTHER HOME SHOPPING EXECUTIVES HAVE BEEN IMPLICATED IN LAWSUITS ALLEGING THEY TOOK PAYOFFS FROM SUPPLIERS SECRETLY INVESTED IN OTHERS AND USED IMPROPER PAYMENTS AND FIRINGS TO COVER UP THE PRACTICES NOW MR HOGAN HAS THE UNENVIABLE TASK OF LEADING THE COMPANY OUT OF THE MORASS HE IS RACING TO SPRUCE UP HOME SHOPPING'S TV RETAILING STRATEGY REALIGN RELATIONS WITH SUPPLIERS AND IMPOSE A NEW ETHICS POLICY GOVERNING SUPPLIER DEALINGS AND OTHER BEHAVIOR THE NEW PRESIDENT AND CHIEF EXECUTIVE OFFICER ALSO IS REPLACING MOST OF ROY SPEER'S MANAGEMENT TEAM ALL WHILE MR SPEER REMAINS AT THE TOP OF THE COMPANY THAT IS A TALL ORDER FOR THE 47YEAROLD MR HOGAN WHO HAILS FROM THE COMPARATIVELY CALM REALM OF WHITTLE COMMUNICATIONS LP AND BEFORE THAT JOB TURNER BROADCASTING SYSTEM INC I KNEW THIS WOULDN'T BE AN EASY JOB WHEN I TOOK IT HE ACKNOWLEDGED IN AN INTERVIEW LAST THURSDAY BUT I AM CONVINCED THIS COMPANY AND THIS INDUSTRY HAS UNTOLD POTENTIAL THESE PROBLEMS WILL FALL BEHIND JUST ONE DAY LATER MR HOGAN LEARNED OF THE LATEST ALLEGATION REPORTED IN THE WALL STREET JOURNAL ON FRIDAY THAT ROY SPEER HAD ACQUIRED AN OCEANFRONT MANSION IN THE BAHAMAS AT AN APPARENT BARGAIN PRICE FROM A SELLER WHO LATER REAPED BIG ORDERS FROM THE NETWORK AFTER SPENDING EIGHT WEEKS STUDYING THE BUSINESS FROM STEM TO STERN MR HOGAN HAS REVAMPED THE COMPANY'S BUSINESS STRATEGY HE HAD THE COMPANY TAKE A 227 MILLION WRITEOFF IN INVENTORY TO MOVE OUT OF LOWMARGIN SOMETIMES TACKY GOODS SUCH AS CERAMIC FIGURINES AND COMMEMORATIVE MEDALLIONS AND TURN TO HIGHERPRICED BRANDNAME GOODS HE EVEN IS UPGRADING THE LOOK OF SET DESIGNS AND ONAIR GRAPHICS TO FURTHER A FRESHER LOOK MR HOGAN HAS HIRED MORE BUYERS TO PURSUE A WIDER VARIETY OF PRODUCTS AND WHILE HOME SHOPPING WILL BE MAKING MORE FREQUENT ORDERS MR HOGAN SAYS THE COMPANY IS TRIMMING THE VOLUMES OF PRODUCTS THE COMPANY ORDERS AT ANY GIVEN TIME IN ADDITION HE HAS INSTITUTED A NEW MANDATORY ETHICS POLICY COMPANYWIDE WHICH DIDN'T EXIST BEFORE HE CAME MR HOGAN HASN'T AIMED ANY OF THE CHANGES AT MR SPEER ALTHOUGH LIBERTY MEDIA CORP WHICH ACQUIRED 65 VOTING CONTROL OF THE COMPANY FROM MR SPEER LAST DECEMBER HAS GIVEN MR HOGAN FULL CONTROL OF THE COMPANY MR SPEER REMAINS CHAIRMAN DESPITE BEING THE TARGET OF MOST OF THE ALLEGATIONS ROY HAS BEEN A KEY FORCE IN THE COMPANY SAYS MR HOGAN HE IS THE GRANDFATHER OF TV SHOPPING ALL OF THE ALLEGATIONS AND INQUIRIES ARE JUST THAT THEY ARE UNSUBSTANTIATED HE WON'T ELABORATE ON WHAT WOULD HAPPEN IF THE SITUATION CHANGES MR HOGAN DIDN'T HESITATE TO TERMINATE THE CHAIRMAN'S SON RICHARD SPEER HAD HELD A TOP POSITION OVERSEEING THE COMPANY'S PURCHASES FROM SUPPLIERS LAST DECEMBER A SHAREHOLDER LAWSUIT CHARGED THAT HOME SHOPPING HAD ILLEGALLY PAID THE SCION MORE THAN 8 MILLION FOR COMPUTER CONSULTING SERVICES UNDER A LONGEXPIRED CONTRACT HOME SHOPPING WON'T SAY WHY THE YOUNGER MR SPEER HAS BEEN FIRED EXCEPT TO EXPLAIN IT AS PART OF BRINGING IN THE NEW TEAM AS MR HOGAN PUTS IT HE WILL BE SUCCEEDED BY JEFF GENTRY A FORMER CHIEF OPERATING OFFICER OF POLLENEX CORP WHO WILL ASSUME THE POST OF SENIOR VICE PRESIDENT OF PURCHASING MR HOGAN HAS ALSO MOVED ASIDE THE PRESIDENT OF ITS PROGRAMMING ARM JAMES LAWLESS WHO HAD BEEN PRESIDENT OF HOME SHOPPING CLUB WILL BE SUCCEEDED BY DOUG BAILEY A FORMER JACK ECKERD CORP MERCHANDISING VICE PRESIDENT THE COMPANY WOULDN'T ELABORATE ON MR LAWLESS'S DEPARTURE AND HE COULDN'T BE REACHED FOR COMMENT IN ADDITION MR HOGAN HAS TAPPED RENEE AIU WHO HAD WORKED IN OTHER TVSHOPPING COMPANIES TO ASSUME THE NEW ROLE OF SENIOR VICE PRESIDENT OF MARKETING SALES AND PROGRAMMING THE NEW TEAM IS EXPECTED TO HELP MR HOGAN AS HE TRIES TO RESTORE PROFITS AT THE COMPANY WHICH HAD 1992 SALES OF 11 BILLION BUT POSTED A LOSS OF ALMOST 27 MILLION IN THE FISCAL SECOND QUARTER CHRIS WHITTLE MR HOGAN'S FORMER BOSS AT WHITTLE COMMUNICATIONS SAYS OF MR HOGAN HE DOESN'T GET RATTLED EASILY AND IN THE SITUATION HE'S IN YOU'VE GOT TO BE COOL UNDER FIRE 9304260030 930426 REFORMING CAMPAIGN REFORM BY BRUCE ACKERMAN CAMPAIGN REFORM LIVES IN A TIME WARP UNTOUCHED BY THE REGULATORY REVOLUTION OF THE LAST GENERATION THE NEW REGULATORS DISDAIN HEAVYHANDED COMMAND AND CONTROL BY BUREAUCRATS RATHER THAN ABOLISH MARKETS THEY TRY TO RESHAPE MARKET INCENTIVES TO ENCOURAGE SOCIALLY RESPONSIBLE DECISION MAKING BILL CLINTON UNDERSTANDS AND ENDORSES THIS BASIC SHIFT IN PUBLIC PHILOSOPHY HIS HEALTH CARE REFORM FOR EXAMPLE WILL AIM TO AVOID THE BUREAUCRATIC PERILS OF BRITAIN'S NATIONAL HEALTH SERVICE IN FAVOR OF A CREATIVE APPROACH TO MANAGED COMPETITION BUT THE PRESIDENT HAS LEFT LEADERSHIP ON CAMPAIGN REFORM TO SEN DAVID BOREN D OKLA AND OTHERS ON THE HILL WHO REMAIN MIRED IN OLDFASHIONED THEORIES OF COMMAND AND CONTROL THE REFORM PACKAGE NOW IN CONGRESS IS A TIRED REPETITION OF FAMILIAR THEMES AND SENATE MINORITY LEADER BOB DOLE R KAN HAS SAID HE WILL LEAD A FILIBUSTER AGAINST THE LEGISLATION IF REPUBLICAN OBJECTIONS ARE NOT MET THE DEMOCRATIC PACKAGE SEEKS TO LIMIT TOTAL CAMPAIGN EXPENDITURES BY DOLING OUT FEDERAL SUBSIDIES TO ALL CANDIDATES WHO AGREE TO LIMIT THEIR PRIVATE FUNDRAISING ACTIVITIES AT THE SAME TIME IT TARGETS PARTICULAR GROUPS AND INDUSTRIES FOR SPECIALLY RESTRICTIVE TREATMENT THIS NOWTRADITIONAL COMBINATION OF EXPENDITURE LIMITATION CENTRALIZED SUBSIDIES AND REGULATORY SCAPEGOATING GENERATES A SERIES OF FAMILIAR DANGERS BY RESTRICTING THE AMOUNT OF MONEY SLOSHING THROUGH THE SYSTEM WE CREATE TWO BIG PROBLEMS MOST OBVIOUSLY WE REDUCE THE AMOUNT OF POLITICAL DEBATE WHILE MONEY ISN'T SPEECH IT MAKES EFFECTIVE SPEECH POSSIBLE ESPECIALLY IN AN AGE OF MASS MEDIA LESS MONEY LESS SPEECHTHIS IMMEDIATELY GENERATES ANXIOUS DOUBTS DO WE REALLY WANT EQUALITY AT THE COST OF SHUTTING DOWN DEBATE RESTRICTING THE FLOW OF CASH MAY ALSO PERVERSELY AFFECT THE BALANCE OF POWER BETWEEN INCUMBENTS AND CHALLENGERS INCUMBENTS GO INTO CAMPAIGNS WITH PUBLIC REPUTATIONS GENERATED THROUGH YEARS OF HIGHVISIBILITY SERVICE CHALLENGERS NEED LOTS OF CASH TO OFFSET THIS ADVANTAGE BY PLACING AN OVERALL LIMIT ON FUNDS AREN'T WE ALLOWING OLDTIMERS TO TIGHTEN THEIR GRIP ON OFFICE UNDER THE BANNER OF REFORM THESE QUESTIONS ENDURE DESPITE THE SECOND TRADITIONAL STRATEGY GOVERNMENT SUBSIDY THROUGH A CENTRALIZED BUREAUCRACY DURING THE LAST WEEKS OF A HARD FOUGHT CAMPAIGN WILL BUREAUCRATS TILT AGAINST CHALLENGERS IN DISTRIBUTING FEDERAL FUNDS EVEN IF CAREFUL STATUTORY CONTROLS REDUCE THE RISK OF BIAS A CENTRALIZED SUBSIDY SCHEME WILL MAKE IT HARDER FOR GRASSROOTS MOVEMENTS TO COMPETE WITH THE ESTABLISHED POLITICAL PARTIES ON RELATIVELY EQUAL TERMS THE THIRD REFORM INITIATIVE WILL FURTHER STRENGTHEN THE POWER OF THE HEAVY BUREAUCRATIC HAND THIS TECHNIQUE TARGETS PARTICULAR GROUPS FOR PARTICULARLY INTENSIVE REGULATION LEGISLATION NOW UNDER CONSIDERATION ON CAPITOL HILL FOCUSES ON TWO DIFFERENT BAD GUYS THE MASS MEDIA ARE TARGETED FOR PRICE CONTROLS ON POLITICAL ADVERTISING POLITICAL ACTION COMMITTEE MONEY IS RESTRICTED IN NEW WAYS THAT ENHANCE BUREAUCRATIC INTERVENTION INTO THE NUTS AND BOLTS OF THE POLITICAL PROCESS THESE REFORMS WOULD LEAD TO A SYSTEM THAT INCREASES BUREAUCRATIC CONTROL AND DECREASES THE OVERALL RESOURCES AVAILABLE FOR DYNAMIC PUBLIC DEBATE WE HAVE ONLY PRIMITIVE REGULATORY THINKING TO BLAME FOR THIS OUTCOME WE CAN ACHIEVE GENUINE CAMPAIGN REFORM AT AN ACCEPTABLE PRICE BY RELYING ON MORE INNOVATIVE REGULATORY METHODS THE MOST PROMISING SYSTEM ADAPTS THE VOUCHER TECHNIQUE THAT IS ALREADY FAMILIAR IN DISCUSSIONS OF EDUCATION AND WELFARE REFORM REGISTERED VOTERS SHOULD BE ISSUED A PLASTIC CARD BY A SPECIAL PUBLIC COMPANYCALL IT THE PATRIOT CARD AND COLOR IT RED WHITE AND BLUE THIS CARD WOULD BECOME THE BASIS OF CAMPAIGN FINANCE SUPPOSE FOR EXAMPLE THAT EACH VOTER'S CARD WERE AUTOMATICALLY CREDITED WITH A 10 BALANCE FOR THE 1996 PRESIDENTIAL ELECTION TO GAIN ACCESS TO THIS REDWHITEANDBLUE MONEY CANDIDATES AND OTHER POLITICAL ORGANIZATIONS WOULD FIRST BE OBLIGED TO DEMONSTRATE SIGNIFICANT POPULAR SUPPORT BY GATHERING AN APPROPRIATE NUMBER OF VOTER SIGNATURES UPON RECEIPT OF THESE SIGNATURES PATRIOT WOULD OPEN AN ACCOUNT THAT GRANTS THE CANDIDATE AN INITIAL BALANCE OF REDWHITEANDBLUE MONEY SAY 1 MILLION FOR PRESIDENTIAL ASPIRANTS CANDIDATES COULD THEN SPEND THEIR INITIAL STAKE ON ADVERTISEMENTS AIMING TO PERSUADE PATRIOT HOLDERS TO TRANSFER MORE REDWHITEANDBLUE MONEY TO THEM SOME CANDIDATES WILL OF COURSE SOON SEE THEIR INITIAL PATRIOT BALANCE SHRINK TO ZERO OTHERS WILL GENERATE TENS OF MILLIONS AS THE CAMPAIGN PROCEEDS UNDER THE PATRIOT PROGRAM ONLY REDWHITEANDBLUE MONEY COULD BE LEGALLY USED TO FINANCE POLITICAL CAMPAIGNS THE USE OF GREENBACKS WOULD BE TREATED AS A FORM OF CORRUPTION SIMILAR TO THE USE OF GREENBACKS TO BUY VOTES THE RESULTING SYSTEM REDUCES THE INFLUENCE OF PRIVATE WEALTH WITHOUT TRANSFERRING POWER FROM THE GENERAL CITIZENRY TO AN IMPERIAL BUREAUCRACY IT ALSO OBVIATES THE NEED TO TARGET PACS OR OTHER REGULATORY SCAPEGOATS IF THE AMERICAN MEDICAL ASSOCIATION CAN PERSUADE DOCTORS OR THEIR PATIENTS TO TRANSFER THEIR 10 REDWHITEANDBLUE DOLLARS TO DOCTORS FOR GOOD GOVERNMENT RATHER THAN CITIZENS FOR CLINTON OR THE REPUBLICAN PARTY PATRIOT DOES NOT PREVENT PACS FROM CONTINUING TO PLAY THE GAME OF ELECTORAL POLITICS ALBEIT ON A REDUCED SCALE FINALLY THE REFORM SHOULD BE DESIGNED TO GUARANTEE AGAINST ANY DECLINE IN OVERALL RESOURCES FLOWING INTO THE POLITICAL MARKETPLACE CONGRESS SHOULD STIPULATE THAT EACH CARDHOLDER MUST RECEIVE AN INDIVIDUAL BALANCE THAT WHEN SUMMED TOGETHER GREATLY EXCEEDS THE TOTAL AMOUNT SPENT IN THE LAST GREENMONEY ELECTION FOR EXAMPLE IF 10 IN REDWHITEANDBLUE MONEY WERE DISTRIBUTED TO EACH OF AMERICA'S 130 MILLION REGISTERED VOTERS THE 13 BILLION DEPOSITED IN PATRIOT ACCOUNTS WOULD BE FOUR TIMES THE AMOUNT SPENT IN THE LAST PRESIDENTIAL ELECTION EVEN IF LOTS OF PEOPLE NEVER USED THEIR PATRIOT CARDS MORE MONEY WOULD STILL BE RUNNING THROUGH THE SYSTEM EXTENDING THE PATRIOT SYSTEM TO ALL CONGRESSIONAL RACES WOULD COST LESS THAN 1 BILLION A YEAR IN EXCHANGE THE VOUCHER PLAN TRANSFORMS CAMPAIGN FINANCE FROM AN INEGALITARIAN EMBARRASSMENT INTO A NEW OCCASION FOR CIVIC RESPONSIBILITY EACH PATRIOTIC DECISION WILL SERVE AS A PRELIMINARY VOTE ENCOURAGING CARDHOLDERS TO FOCUS ON THE CAMPAIGN AS IT DEVELOPS AND SUPPORT THE CANDIDATES OF THEIR CHOICE AT THE TIME OF THEIR CHOICE AT THE SAME TIME IT MAKES IT VIRTUALLY IMPOSSIBLE FOR FEDERAL OFFICIALS TO DISRUPT THE FLOW OF FUNDS GOING INTO PARTICULAR CAMPAIGNS PATRIOT IS NO PANACEA BUT THIS IS NOT THE PLACE TO ENUMERATE ALL THE LEGAL AND TECHNICAL QUESTIONS IT IS MORE IMPORTANT TO URGE CONGRESS AND THE PRESIDENT TO RETHINK CAMPAIGN FINANCE BEFORE COMMITTING THE AMERICAN PEOPLE TO AN OBSOLETE REFORM AGENDA RATHER THAN BLOCKING EFFECTIVE REFORM THROUGH A NEGATIVE FILIBUSTER REPUBLICANS IN THE SENATE SHOULD USE THEIR POLITICAL LEVERAGE TO PROVOKE AN INNOVATIVE SOLUTION TO A FESTERING PROBLEM MR ACKERMAN IS A PROFESSOR OF LAW AND POLITICAL SCIENCE AT YALE HE DISCUSSES THE PATRIOT PROPOSAL AT GREATER LENGTH IN THE CURRENT ISSUE OF THE AMERICAN PROSPECT 9304260029 930426 AUTOS FORD EXPLORER HURT BY RIVALS SEES SALES EASE BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT FORD MOTOR CO'S TRAILBLAZING EXPLORER SPORTUTILITY VEHICLE IS LOSING SOME OF ITS SIZZLE SALES OF THE HIGHLY PROFITABLE EXPLORER WHICH IS THE MARKET LEADER OF ITS TYPE ARE TRAILING BEHIND YEARAGO LEVELS EVEN THOUGH OVERALL SALES OF LIGHT TRUCKS ARE BRISK EXPLORER SALES WERE OFF A SURPRISING 145 IN MIDAPRIL AND ARE DOWN 77 SINCE JAN 1 AT THE SAME TIME SALES OF RIVALS JEEP GRAND CHEROKEE AND CHEVROLET BLAZER ARE SMOKING FUELED BY A LOWERPRICED LEASE PROGRAM BLAZER SALES SOARED NEARLY 51 IN MIDAPRIL EXPLORER SALES MAY HAVE PEAKED IN THE SHORT TERM SAYS CHRISTOPHER CEDERGREN AUTO ANALYST AT AUTOPACIFIC GROUP INC A SANTA ANA CALIF CONSULTING FIRM THE COMPETITION IS HEATING UP FORD SHOULD BE CONCERNED BUT NOT PANICKED A FORD SPOKESMAN CONCEDES THAT IN THE SHORT RUN WE WILL LOSE SOME SHARE TO RIVAL VEHICLES SOME DEALERS FRET THAT FORD MAY FOR THE FIRST TIME HAVE TO OFFER SOME SORT OF INCENTIVE ON EXPLORERS TO REGAIN MOMENTUM ALL THIS IS A MARKED DEPARTURE FROM THE CONFIDENT ATTITUDE FORD AND ITS DEALERS HAVE TAKEN EVER SINCE THE EXPLORER'S LAUNCH THREE YEARS AGO WITH ITS CIVILIZED RIDE AND BIG CARGO AREA THE EXPLORER WAS AN INSTANT HIT AND QUICKLY BECAME THE BESTSELLING VEHICLE OF ITS KIND FORD DEALERS STILL COMPLAIN THAT THEY CAN'T STOCK ENOUGH EXPLORERS PARTICULARLY THE XLT MODEL WHICH SELLS FOR ABOUT 21000 BUT LATELY DEALERS SAY SOME CUSTOMERS AREN'T CONTENT TO WAIT THE AVERAGE SIX WEEKS TO RECEIVE AN EXPLORER INSTEAD MORE WOULDBE EXPLORER BUYERS ARE HOPPING INTO RIVAL VEHICLES THAT ARE EITHER NEWER OR LOWER PRICED ONE OF THE EXPLORER'S TOUGHEST CHALLENGERS IS CHRYSLER CORP'S LUXURY JEEP GRAND CHEROKEE LAUNCHED LAST YEAR THE GRAND CHEROKEE HAS RAPIDLY GAINED GROUND IN PART BECAUSE OF AN OPTIONAL V8 ENGINE THE EXPLORER DOESN'T OFFER A V8 THE GRAND CHEROKEE'S BASE V6 ENGINE WITH 200 HORSEPOWER ALSO IS MORE POWERFUL THAN THE EXPLORER'S STANDARD ENGINE AND THE GRAND CHEROKEE OFFERS DRIVER'S SIDE AIRBAG WHICH ISN'T AVAILABLE ON EXPLORER MOST GRAND CHEROKEE SALES ARE GENERATED BY ITS FOURWHEEL DRIVE LAREDO VERSION FOR 21000 PRICED COMPETITIVELY WITH THE POPULAR EXPLORER XLT BUT CHRYSLER ALSO IS SQUEEZING EXPLORER AT THE LOWER END OF THE MARKET IT KEPT ALIVE ITS OLD JEEP CHEROKEE AND SLAPPED BASE PRICES RANGING FROM 12187 TO 18583 ON THE AGING CLASSIC SO FAR THE STRATEGY IS WORKING CHRYSLER OFFICIALS SAY WE LOST LEADERSHIP WHEN THE EXPLORER CAME OUT SAID E THOMAS PAPPERT CHRYSLER'S VICE PRESIDENT OF SALES BUT IN THE FIRST QUARTER COMBINED SALES OF THE JEEP CHEROKEE AND THE GRAND CHEROKEE EDGED PAST EXPLORER CHRYSLER SOLD 65303 CHEROKEES IN THE FIRST THREE MONTHS OF THE YEAR FORD SOLD 65181 EXPLORERS EXPLORER ALSO IS FEELING PRESSURE FROM SOME CONTENDERS THAT ONCE HAD SEEMED OUT OF THE RACE IN THE FALL GENERAL MOTORS CORP UPGRADED ITS 11YEAROLD CHEVROLET S10 BLAZER BUT HELD PRICES AT 1992 LEVELS CHEVROLET HAS RECENTLY BEGUN PUTTING MORE ADVERTISING MUSCLE BEHIND THE S10 BLAZER HAILING IT AS THE ORIGINAL SPORTUTILITY VEHICLE THE RESULT S10 BLAZER SALES HAVE SURGED 31 SINCE JAN 1 NOW GM PLANS TO EXTEND PRODUCTION OF THE CURRENT VEHICLE BY OPERATING A PONTIAC MICH FACTORY THAT WAS SCHEDULED TO CLOSE THIS SUMMER AND NEXT SPRING GM PLANS TO LAUNCH A REDESIGNED S10 BLAZER CHEVY PRICED ITS BASE BLAZER ABOUT 4000 LESS THAN EXPLORER'S BASE PRICE BLAZER BASE PRICES RANGE FROM 14823 TO 21730 FOR THE BLAZER TAHOE LIMITED EXPLORER'S BASE PRICE STARTS AT 19390 AND REACHES 26422 FOR THE EXPLORER LIMITED CHEVY IS ALSO ADVERTISING A SPECIAL 299 36MONTH LEASE PROGRAM THE TOTAL COST OF THE LEASE TO CONSUMERS IS ABOUT 22000 WHICH CHEVY NOTES IN ITS AD IS ABOUT 2000 LESS THAN A COMPARABLE EXPLORER EDDIE BAUER MODEL AT THOSE PRICES BUDGETCONSCIOUS SPORTUTILITY BUYERS ARE CONSIDERING THE S10 BLAZER OR ITS SISTER MODEL THE GMC JIMMY DESPITE ITS BUMPIER RIDE AND SMALLER CARGO SPACE DEALERS SAY BETTER QUALITY IS HELPING TOO IN 1990 THE BLAZER USED TO RATTLE AND HAD OTHER PROBLEMS SAID DAVID TUCKER NEW CAR MANAGER AT BILL HEARD CHEVROLET CO COLUMBUS GA NOW HE SAYS BLAZER QUALITY IS A LOT BETTER THAN IT WAS THREE YEARS AGO MY BLAZER SALES ARE UP 12 FROM A YEAR AGO AND UP 25 FROM 1991 THIS IS A CRITICAL YEAR FOR US SAID KURT L RITTER CHEVY'S TRUCK MANAGER THE ASSEMBLY PLANT THAT BUILDS THE S10 HAS UNDERGONE AN EXHAUSTIVE SQUEAK AND RATTLE CAMPAIGN WE DID A LOT OF LITTLE THINGS A LOT BETTER AND GOT A LOT CLOSER TO RIGHT SOME FORD DEALERS CONTEND THAT IF THEY HAD MORE EXPLORERS PARTICULARLY THE MIDPRICE XLT MODEL THEY COULD SELL MORE BUT FORD WON'T BOOST OUTPUT UNTIL 1995 WHEN IT PLANS TO CONVERT ITS ST LOUIS ASSEMBLY PLANT INTO A PRODUCTION SITE FOR THE EXPLORER THE CONVERSION WILL ALLOW FORD TO BUILD AN ADDITIONAL 230000 EXPLORERS ANNUALLY IN ST LOUIS AND FORD WILL CONTINUE BUILDING ABOUT 200000 EXPLORERS AT ITS LOUISVILLE KY ASSEMBLY PLANT FORD BUILDS THE EXPLORER THERE ALONG WITH THE FORD RANGER COMPACT PICKUP AND MAZDA NAVAJO SPORTUTILITY VEHICLE BUT IF RIVALS CONTINUE TO GAIN GROUND ON EXPLORER FORD RISKS NOT BEING ABLE TO SELL OUT THE CAPACITY IT HAS NOW FORD BUILT 85662 EXPLORERS IN THE FIRST THREE MONTHS OF THE YEAR BUT ONLY SOLD 76 OF THE ASSEMBLED VEHICLES THE INVENTORY OF UNSOLD EXPLORER VEHICLES WAS AT A 53DAY SUPPLY AT THE END OF MARCH ACCORDING TO WARD'S AUTOMOTIVE REPORTS A TRADE PUBLICATION THAT IS WELL BELOW THE 60DAY TO 65DAY SUPPLY LEVEL CONSIDERED IDEAL BUT HIGHER THAN FEBRUARY'S 48DAY SUPPLY MR CEDERGREN SAYS FORD MUST BECOME MORE AGGRESSIVE IN ITS MARKETING OF EXPLORER AND MAY HAVE TO RESORT TO SOME SORT OF INCENTIVE TO HALT SALES EROSION FORD COULD OFFER A VALUE PACKAGE EXPLORER WHICH EFFECTIVELY WOULD OFFER A WELLEQUIPPED VEHICLE FOR A REDUCED STICKER PRICE BUT THE AUTO MAKER MAY BE RELUCTANT TO TAKE ANY ACTION THAT COULD TARNISH EXPLORER'S UPSCALE IMAGE HE ADDS FOR FORD THE BOTTOM LINE IS PURE PROFIT MR CEDERGREN SAYS THE EXPLORER IS A CASH COW FOR THEM AND IT HAS A GOOD SOLID IMAGE FORD DOESN'T WANT TO DO ANYTHING TO JEOPARDIZE THAT IMAGE 9304260028 930426 ING TO RESTRUCTURE TO INTEGRATE BANKING INSURANCE BUSINESSES SPECIAL TO THE WALL STREET JOURNAL AMSTERDAM INTERNATIONALE NEDERLANDEN GROEP NV SAID IT PLANS A NEW MANAGEMENT STRUCTURE TO BETTER INTEGRATE ITS DIVERSE INSURANCE AND BANKING BUSINESSES THE AMSTERDAMBASED FINANCIAL SERVICES COMPANY SAID THE CHANGES WILL BLUR THE PREVIOUSLY FORMAL LINES BETWEEN ITS SEPARATE INSURANCE AND BANKING BUSINESSES WE SEE THE CONTINUED EXPANSION OF INTEGRATED FINANCIAL SERVICES AS HAVING SPECIAL POTENTIAL FOR THE FURTHER STRENGTHENING OF OUR MARKET POSITION IN THE NETHERLANDS ING CHAIRMAN AG JACOBS SAID HE ADDED THAT OUTSIDE THE NETHERLANDS WE ARE CAREFULLY EXAMINING WHERE AN ALLIANCE OF BANKING AND INSURANCE ACTIVITIES IS FEASIBLE AND MAKES SENSE THE RESTRUCTURING OF THE COMPANY'S ORGANIZATION IS ANOTHER STEP IN A LONG PROCESS OF INTEGRATING WHAT JUST A FEW YEARS AGO WERE THREE OF THE NETHERLANDS' LARGEST INDEPENDENT FINANCIAL COMPANIES ALL HAD DIFFERENT TYPES OF BUSINESSES WITH DIFFERENT CORPORATE CULTURES ING IS THE PRODUCT OF TWO SEPARATE MERGERS THE FIRST WAS THE LATE 1980S MERGER OF COMMERCIAL BANK NEDERLANDSCHE MIDDENSTANDSBANK NV NMB WITH POSTAL BANKING GROUP POSTBANK NV THE SECOND WAS THE 1991 MARRIAGE OF NMB POSTBANK WITH THE COUNTRY'S BIGGEST INSURER NATIONALE NEDERLANDEN NV THE POSTMERGER ENTITY HAS BEEN RUMORED TO BE UNDERGOING A DIFFICULT TRANSITION IN RECENT YEARS WITH ANALYSTS SAYING THE COMPANY MAY HAVE GROWN TOO BROADLY TOO QUICKLY AFTER A GREAT DEAL OF CAREFUL CONSIDERATION WE BELIEVE WE'VE ARRIVED AT A STRUCTURE THAT WILL GIVE FREE REIN TO THE ENTREPRENEURIAL SPIRIT AND ENCOURAGE INNOVATION ING VICE CHAIRMAN GJA VAN DER LUGT ADDED THE TWO SENIOR ING EXECUTIVES MADE THEIR REMARKS IN AN INHOUSE NEWSLETTER MADE AVAILABLE BY THE COMPANY UNDER THE REORGANIZATION ING'S INSURANCE AND BANKING BUSINESSES WON'T BE SEPARATELY DEFINED AND MANAGED THE COMPANY'S TOP MANAGEMENT WILL CONSIST OF A BOARD TO WHICH AN EXECUTIVE GROUP WILL REPORT IN TURN THE EXECUTIVE BOARD WILL BE ADVISED BY A NUMBER OF STAFF DEPARTMENTS AND OVERSEE FOUR SEPARATE OPERATING AREAS THOSE FOUR BUSINESS AREAS WILL BE ING'S DUTCH DOMESTIC LINES ITS OVERSEAS BUSINESS ITS INVESTMENT LINES AND ITS REAL ESTATE ACTIVITIES EACH BUSINESS AREA WILL BE MANAGED BY A PANEL OF EXECUTIVES DRAWN FROM BOTH THE INSURANCE AND BANKING SECTORS SO THAT ING'S CORPORATE POLICY CAN BE CONDUCTED BY COMMITTEE WITH AN AIM TOWARD INTEGRATING FINANCIAL SERVICES EACH OF ING'S FOUR MAIN BUSINESS AREAS WILL THEMSELVES BE BROKEN DOWN INTO SUBSECTORS 9304260027 930426 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN RUSSIA AND THE WORLD BANK COMPLETED YEARLONG NEGOTIATIONS ON A 500 MILLION LOAN TO UPGRADE WESTERN SIBERIAN OIL FIELDS THE LOAN IS PART OF A 1 BILLION MULTINATIONAL LENDING ARRANGEMENT THE GROUP OF SEVEN INDUSTRIALIZED NATIONS HAS ENDORSED WORLD BANK ENERGYSECTOR LOANS TO RUSSIA AS PART OF THE G7'S 284 BILLION MULTILATERAL AID PACKAGE AS OIL AND GAS SALES ARE A PRIME SOURCE OF HARDCURRENCY EARNINGS IMPROVING RUSSIA'S ENERGY SECTOR IS CRUCIAL TO FINANCING THE NATION'S ECONOMIC REFORMS THE OILSECTOR LOAN PARTLY TO STEM DETERIORATION OF OIL FIELDS REQUIRES WORLD BANK BOARD APPROVAL EXPECTED BY MIDJUNE THE AGREEMENT SETS THE STAGE FOR RAPID ACTION ON EXPORT CREDITS FROM GOVERNMENTS SUCH AS JAPAN AND THE US THE PACKAGE COULD BOOST RUSSIA'S OIL OUTPUT 3 THOUGH SPECIFICS OF THE LOAN WEREN'T DISCLOSED THE WORLD BANK HAS PUSHED RUSSIA FOR LEGAL RIGHTS FOR PRIVATE INVESTORS IN THE ENERGY SECTOR AND COMMITMENTS TO MOVE TO WORLDMARKET PRICING VIETNAM NEEDS AS MUCH AS 50 BILLION TO DEVELOP ITS PRIMITIVE ECONOMY IN THIS DECADE A STATE PLANNING OFFICIAL SAID IN A MEETING WITH REPRESENTATIVES OF THE INTERNATIONAL MONETARY FUND JAPAN AUSTRALIA AND OTHER POTENTIAL DONOR NATIONS THE GOVERNMENT OUTLINED PRIORITIES SUCH AS BUILDING DEEPWATER PORTS UPGRADING ROADS AND RAILWAYS AND REFORESTING BARREN LAND IT HOPES TO GET HALF THE NEEDED CASH FROM FOREIGN SOURCES SUCH AS MULTILATERAL BANKS DONOR NATIONS AND PRIVATE INVESTORS AUSTRIA'S GROSS DOMESTIC PRODUCT COULD CONTRACT 04 THIS YEAR THEN EXPAND 1 NEXT YEAR THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT SAID IN THE OECD A GROUP OF 24 INDUSTRIALIZED COUNTRIES AUSTRIA WAS A GROWTH LEADER LAST YEAR WHEN GDP INCREASED 18 THOUGH A RISE OF 28 HAD BEEN FORECAST SLUGGISH EUROPEAN ECONOMIES AND A DROP IN GLOBAL COMPETITIVENESS ARE SEEN DAMPING AUSTRIA'S EXPORT GROWTH AND THUS BUSINESS INVESTMENT THEN AS AUSTRIA'S OUTPUT STAGNATES UNEMPLOYMENT MAY RISE FROM 4 LAST YEAR TO 5 THIS YEAR AND 57 NEXT YEAR WHILE INFLATION WHICH RAN AT 46 IN 1992 SLOWS TO 4 IN 1993 AND 34 IN 1994 CHINA PREDICTED ITS ECONOMY WILL EXPAND AT A BLISTERING 13 RATE THIS YEAR ACCELERATING FROM 128 LAST YEAR AMID FEARS THE ECONOMY IS OVERHEATING PREMIER LI PENG HAS TARGETED THE 1993 GROWTH CEILING AT 8 BUT BEIJING OFFICIALS AND ECONOMISTS CONCEDE THAT IT WILL BE IMPOSSIBLE TO RESTRICT GROWTH NATIONALLY TO 8 BECAUSE MANY LOCAL GOVERNMENTS SAY THEIR AREAS SPURRED BY MARKETSTYLE REFORMS WILL EXCEED MR LI'S LIMIT INDEED FIRSTQUARTER STATISTICS SHOW THE ECONOMY EXPANDED AT A WHOPPING 14 ANNUAL RATE REINFORCING EVIDENCE OF A SUSTAINABLE RECOVERY FROM RECESSION NEW ZEALAND RECORDED A STRONGERTHANEXPECTED TRADE SURPLUS FOR MARCH EXPORT EARNINGS JUMPED 26 TO 198 BILLION NEW ZEALAND DOLLARS US107 BILLION FROM FEBRUARY A RECORD FOR ANY MARCH IMPORTS ADVANCED 14 TO NZ146 BILLION THAT PUSHED THE TRADE SURPLUS UP 80 TO NZ5211 MILLION ALSO A RECORD FOR MARCH AND FAR SURPASSING AN ANTICIPATED NZ350 MILLION SURPLUS LED BY GROWTH IN SALES OF AGRICULTURAL GOODS GERMAN STATE AND FEDERAL LEADERS RESOLVED A DISPUTE THAT HAD THREATENED A FINANCING PACT TO INTEGRATE THE EASTERN REGION'S ECONOMY THE FEDERAL GOVERNMENT HAD CONTENDED THE STATES SHOULD COME UP WITH 45 BILLION MARKS 281 BILLION IN FINANCING THE TENTATIVE SOLUTION CALLS FOR BOTH SIDES TO FINANCE THE SUM EQUALLY PARTLY THROUGH BUDGET SAVINGS AND EASES THE WAY FOR PARLIAMENTARY PASSAGE BRAZIL ANNOUNCED IT WOULD SPEED UP ITS PRIVATIZATION PROGRAM AS PART OF AN ECONOMIC STABILIZATION PLAN THE GOVERNMENT SAID IT WOULD SELL AS SOON AS POSSIBLE MINORITY STAKES IN MORE THAN 1000 COMPANIES SPEED UP THE PACE OF PREVIOUSLY ANNOUNCED AUCTIONS AND BROADEN THE SELLOFF TO INCLUDE ENERGY COMMUNICATIONS AND MINING COMPANIES THE ADMINISTRATION ALSO SAID IT WOULD SUBMIT A BILL TO CONGRESS THAT WOULD ALLOW FOREIGNERS TO HOLD 100 OF PRIVATIZED COMPANIES UP FROM 40 CURRENTLY THE STABILIZATION PACKAGE ALSO INCLUDES GOVERNMENT SPENDING CUTS PLANS TO FIGHT TAX EVASION AND INCENTIVES TO REVITALIZE THE CONSTRUCTION AND FARM SECTORS MANY ECONOMISTS SAID THE PLAN FALLS SHORT OF WHAT IS NEEDED TO ATTACK BRAZIL'S RECESSION AND 27AMONTH INFLATION BUT THEY WELCOMED THE FACT THAT THE PROGRAM DOESN'T INCLUDE UNPOPULAR ITEMS FROM PRIOR PLANS SUCH AS WAGE AND PRICE FREEZES OR CONFISCATION OF ASSETS JAPANESE PER CAPITA INCOME IN THE YEAR ENDED MARCH 31 1991 ROSE 61 TO 2944000 YEN 26765 SLOWING FROM A 75 INCREASE A YEAR EARLIER AS THE BUBBLE ECONOMY OF SPECULATIVE INVESTMENTS COLLAPSED JAPAN WILL HOLD EMERGENCY HEARINGS ON WHETHER THE YEN'S RISE AGAINST FOREIGN CURRENCIES WARRANTS GOVERNMENT ACTION TO ENSURE THAT CONSUMERS BENEFIT FROM THE REDUCED COSTS OF IMPORTS THROUGH CUTS IN UTILITY RATES AND RETAIL PRICES 9304260026 930426 BUSINESS BRIEF CHRYSLER CORP STAKE IN MITSUBISHI IS CUT IN 100 MILLION SALE OF STOCK CHRYSLER CORP SOLD 100 MILLION OF ITS SHARES IN MITSUBISHI MOTORS CORP REDUCING ITS STAKE IN THE JAPANESE AUTO MAKER TO 47 FROM 59 THE SALE IN THE PAST FEW WEEKS OF 155 MILLION SHARES IS PART OF AN EFFORT BY CHRYSLER TO BOLSTER ITS FINANCIAL POSITION BY SELLING ITS MITSUBISHI HOLDINGS CHRYSLER SAID THE STOCK WAS SOLD IN THE US CHRYSLER SAID THE HIGHLAND PARK MICH AUTO MAKER ACQUIRED A 15 STAKE IN MITSUBISHI IN 1971 AND AT ONE TIME HELD 24 BUT IN THE PAST FEW YEARS IT HAS BEEN SELLING ITS INVESTMENTS IN THE COMPANY INCLUDING A PARTOWNERSHIP OF MITSUBISHI'S US ASSEMBLY PLANT THE COMPANIES SAY THE SALE WILL NOT EFFECT THEIR JOINT VENTURES CHRYSLER SELLS MITSUBISHI PRODUCTS THROUGH ITS US DEALERS AND IT PLANS TO SELL ENGINES AND TRANSMISSIONS TO MITSUBISHI 9304260025 930426 PEPPERAND SALT AND BLOCKED OUT ALL ELSE IN VIEW CAN LOVE OCCUR AT FIRST SIGHT OUR LOOK TOLD US THIS WAS TRUE BUT IT WAS NEVER TO BE HE WAS PISCES I A TAURUS BENCHED BALLPLAYER DESIGNATED SITTER 9304260024 930426 BORDEN POSTS A PROFIT FOR THE FIRST QUARTER ANALYSTS NOT PLEASED NEW YORK BORDEN INC POSTED A SMALL FIRSTQUARTER PROFIT COMPARED WITH A YEAREARLIER LOSS SAYING SALES AND EARNINGS FELL IN ALL FOUR OF ITS MAJOR BUSINESS UNITS THE CONSUMER PRODUCTS COMPANY REPORTED FIRSTQUARTER NET OF 324 MILLION OR 23 CENTS A SHARE COMPARED WITH A NET LOSS OF 1705 MILLION OR 115 A SHARE IN THE YEAREARLIER PERIOD BUT EXCLUDING THE EFFECT OF A 229 MILLION CHARGE TAKEN LAST YEAR FOR ACCOUNTING CHANGES NET FELL 45 SALES DROPPED NEARLY 8 TO 157 BILLION THE RESULTS WERE EVEN WORSE THAN MOST ANALYSTS HAD FEARED EVEN THOUGH COMPANY OFFICIALS HAD WARNED THEM ONLY A MONTH AGO TO LOWER THEIR 30CENTASHARE EARNINGS ESTIMATES THIS COMPANY'S EARNINGS ALWAYS COME IN AT THE LOWEST OF THE LOW SAID NOMI GHEZ ANALYST AT GOLDMAN SACHS & CO WHO HAD BEEN EXPECTING PERSHARE NET CLOSER TO 25 CENTS IT LOOKS AWFUL NO MATTER HOW YOU LOOK AT IT JOHN MCMILLIN ANALYST AT PRUDENTIAL SECURITIES INC IS LOWERING HIS FULLYEAR ESTIMATE TO 180 A SHARE FROM 195 IF THERE'S A LIGHT AT THE END OF THE BORDEN TUNNEL I DON'T SEE IT HE ADDED BUT THE BAD EARNINGS NEWS WAS PAIRED WITH AN SURPRISINGLY UPBEAT SPEECH BY CHIEF EXECUTIVE ANTHONY S D'AMATO IN REMARKS AT FRIDAY'S ANNUAL MEETING MR D'AMATO OUTLINED BORDEN'S CONTINUING ATTEMPTS TO REFOCUS ITS BUSINESSES HE SAID THE COMPANY HAS IDENTIFIED WAYS TO CONTRIBUTE AT LEAST 25 MILLION TO OPERATING PROFIT IN 1993 BORDEN'S OPERATING PERFORMANCE DETERIORATED ON MANY FRONTS REFLECTING HEAVY PROMOTIONAL COMPETITION ON VIRTUALLY ITS FULL RANGE OF BUSINESSES OPERATING INCOME IN THE GROCERY PRODUCTS DIVISION WAS DOWN SIGNIFICANTLY ON A 77 DROP IN SALES TO 392 MILLION THE US DAIRY DIVISION POSTED SUBSTANTIALLY LOWER OPERATING PROFIT ON AN 11 DROP IN SALES TO 3015 MILLION SNACKS AND INTERNATIONAL CONSUMER PRODUCTS ALSO RECORDED SUBSTANTIALLY LOWER FIRSTQUARTER OPERATING PROFIT LARGELY DUE TO SALES AND EARNINGS DECLINES IN ITS NORTH AMERICAN SNACK BUSINESS SALES IN THE UNIT DECLINED 11 TO 4025 MILLION 9304260023 930426 NEWS CORP OTHERS FORM GROUP TO BID FOR PAYTV LICENSE SPECIAL TO THE WALL STREET JOURNAL SYDNEY AUSTRALIA RUPERT MURDOCH'S NEWS CORP SAID IT IS FORMING A CONSORTIUM WITH KERRY PACKER'S NINE NETWORK AUSTRALIA LTD AND WITH AUSTRALIA & OVERSEAS TELECOMMUNICATIONS CORP TO BID FOR A SATELLITE PAY TELEVISION LICENSE THE THREE COMPANIES SAID THEY AGREED TO FORM THE CONSORTIUM TO DEVELOP AND OPERATE ON A LONGTERM BASIS AN AUSTRALIAN PAY TELEVISION BUSINESS A SPOKESWOMAN FOR THE THREE COMPANIES SAID THAT DISCUSSIONS ARE CONTINUING WITH OTHER POTENTIAL PARTIES FOR THE CONSORTIUM THE COMPANIES SAID THEY ARE UNABLE TO ISSUE FURTHER DETAILS OF THE BID UNTIL LICENSE APPLICATIONS HAVE CLOSED THERE ISN'T YET ANY PAY TELEVISION IN AUSTRALIA AND THE NEW CONSORTIUM IS THE FIRST TO ANNOUNCE A BID TO OPERATE SATELLITE TELEVISION NEWS CORP HAS BRITISH SATELLITE TELEVISION INTERESTS THROUGH ITS 50 OWNED BRITISH SKY BROADCASTING LTD IT IS AUSTRALIA'S BIGGEST NEWSPAPER PUBLISHER AND ITS WORLDWIDE MEDIA INTERESTS INCLUDE THE TWENTIETH CENTURY FOX FILM STUDIO AND FOX BROADCASTING CO IN THE US AUSTRALIA & OVERSEAS TELECOMMUNICATIONS IS A STATEOWNED NATIONAL AND INTERNATIONAL TELECOMMUNICATIONS CARRIER THE AUSTRALIAN GOVERNMENT CALLED FOR BIDS FOR TWO PAY TELEVISION LICENSES IN JANUARY SUCCESSFUL BIDDERS WILL EACH BE ALLOWED TO PROVIDE UP TO FOUR SATELLITE PAY TELEVISION CHANNELS APPLICATIONS CLOSE APRIL 28 A THIRD LICENSE FOR TWO CHANNELS WILL BE ISSUED TO AUSTRALIAN BROADCASTING CORP A STATEOWNED NATIONAL TELEVISION AND RADIO BROADCASTER THE PAY TELEVISION SERVICES WILL USE DIGITAL COMPRESSION TECHNOLOGY AND UTILIZE A SATELLITE OWNED BY OPTUS COMMUNICATIONS PTY ANOTHER AUSTRALIA'S TELECOMMUNICATIONS CARRIER BELLSOUTH CORP OF THE US AND CABLE & WIRELESS PLC OF BRITAIN EACH HOLD 245 OF OPTUS THE GOVERNMENT HAS SAID IT WILL USE A PRICEBASED ALLOCATION SYSTEM TO SELECT THE SUCCESSFUL LICENSE BIDDERS FOREIGN OWNERSHIP OF THE PAY TELEVISION OPERATORS WILL BE LIMITED TO 20 FOR AN INDIVIDUAL SHAREHOLDER WHILE AGGREGATE FOREIGN OWNERSHIP WILL BE LIMITED TO 35 9304260021 930426 ECONOMY MACHINE TOOL ORDERS JUMPED 157 IN MARCH BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL MACHINE TOOL ORDERS JUMPED 157 TO 3271 MILLION IN MARCH FROM FEBRUARY AS AUTO MAKERS PLACED EQUIPMENT ORDERS BUT MANY MANUFACTURERS CONTINUE TO REPORT SLACK DEMAND ELI S LUSTGARTEN AN ANALYST WHO FOLLOWS THE INDUSTRY FOR PAINEWEBBER INC SAID CUSTOMERS ARE STEPPING UP ORDERS TO ENHANCE THEIR PRODUCTIVITY A FEAT MOST MACHINE TOOLS HELP ACCOMPLISH EFFICIENT MANUFACTURING IS EXCEPTIONALLY IMPORTANT TO BE ABLE TO COMPETE IN A PRICECOMPETITIVE MARKET MR LUSTGARTEN SAID MOREOVER THE MODEST ECONOMIC RECOVERY IS ENCOURAGING COMPANIES TO BUY NEW EQUIPMENT AND AUTO MAKERS ARE ADDING PRODUCTION PROGRAMS YOU ARE SEEING SOME NEW ENGINE PROGRAMS HE SAID LITTON INDUSTRIES INC WAS SEEN AS ONE OF THE BIG BENEFICIARIES OF THE SURGE IN ORDERS JOHN W PAXTON SENIOR VICE PRESIDENT FOR INDUSTRIAL AUTOMATION CONFIRMED THAT BEVERLY HILLS CALIFBASED LITTON HAD SCORED SEVERAL AUTOMOTIVERELATED ORDERS RECENTLY THOUGH HE DECLINED TO NAME THE CUSTOMERS BUT ONE IS BELIEVED TO BE BAYERISCHE MOTOREN WERKE AG WHICH IS BUILDING A PLANT NEAR SPARTANBURG SC THE ASSOCIATION FOR MANUFACTURING TECHNOLOGY THE MCLEAN VA TRADE GROUP THAT COMPILES THE ORDER STATISTICS HAILED MARCH'S INCREASE BECAUSE IT SAID THE FIGURES CONTAIN ORDERS FROM LARGE AND SMALL CUSTOMERS ANOTHER MEASURE OF THE GROWTH IN ORDERS CAME FROM THE AMERICAN MACHINE TOOL DISTRIBUTORS' ASSOCIATION ITS MONTHLY ORDER INDEX BASED ON ORDERS OVER A THREEYEAR PERIOD LEAPED 306 IN MARCH COMPARED WITH FEBRUARY THE GROUP'S INDEX IS CONSIDERED BROADER THAN FIGURES COMPILED BY THE ASSOCIATION FOR MANUFACTURING TECHNOLOGY BECAUSE IT INCLUDES ORDERS FOR FOREIGNMADE MACHINE TOOLS IT'S NOT JUST A SPURT MR PAXTON SAID OF THE ORDER INCREASE BUT OTHER MACHINE TOOL MAKERS HAVE YET TO SEE EVEN A SPURT WE HAVEN'T SEEN IT RECOVER SAID ROBERT J SIEWERT PRESIDENT OF SIDNEY OHIOBASED MONARCH MACHINE TOOL CO ORDERS BEGAN DECLINING IN NOVEMBER AND CONTINUED INTO THIS MONTH MR SIEWERT SAID A RECOVERY IN ORDERS IS A LITTLE SLOW GETTING STARTED ADDED HEATH OLIVER PRESIDENT OF BARDONS & OLIVER INC A CLEVELAND MACHINE TOOL MAKER FOR THE INDUSTRY ORDERS CLIMBED 347 TO 3271 MILLION IN MARCH WHEN COMPARED TO MARCH 1992 ON A YEARTODATE BASIS ORDERS ROSE 161 TO 7853 MILLION DOMESTIC ORDERS SHOWED THE GREATEST STRENGTH DURING THE MONTH RISING 217 TO 2999 MILLION COMPARED WITH FEBRUARY AND UP 422 FROM MARCH 1992 THROUGH MARCH DOMESTIC ORDERS WERE UP 143 TO 6873 MILLION ORDERS FOR EXPORTS SLUMPED SLIPPING 251 TO 272 MILLION IN MARCH FROM FEBRUARY LEVELS AND 149 FROM THE SAME MONTH LAST YEAR ON A YEARTODATE BASIS HOWEVER ORDERS FOR EXPORTS INCREASED 301 TO 98 MILLION MACHINE TOOLS CUT AND FORM METAL PARTS FOR OTHER MACHINES ORDERS ARE CONSIDERED AN ECONOMIC INDICATOR BECAUSE THE MACHINES ARE SHIPPED NINE TO 18 MONTHS LATER FOR THE REST OF 1993 ANALYSTS AND MACHINE TOOL MANUFACTURERS FORESEE STRONGER ORDERS EVEN WITHOUT A MUCH DISCUSSED INVESTMENT TAX CREDIT WHICH HAD BEEN EXPECTED TO AID ORDERS BUT NOW LOOKS LESS LIKELY TO BE ENACTED MR LUSTGARTEN EXPECTS THE INDUSTRY TO POST A DOUBLEDIGIT PERCENTAGE INCREASE IN ORDERS FOR 1993 LAST YEAR'S ORDERS TOTALED 248 BILLION EVEN MR SIEWERT AT MONARCH SAID ORDERS IN APRIL ARE TRENDING UP BUT HE REMAINS CAUTIOUS I HOPE IT'S NOT JUST A FLASH IN THE PAN HE SAID COMPARATIVE NEW ORDERS FOR METALCUTTING MACHINES COMPARATIVE SHIPMENT OF METALCUTTING MACHINES METALFORMING MACHINE SHIPMENTS 9304260020 930426 WORLD MARKETS PRICES FIRM IN TOKYO SNAPPING A LOSING STREAK FALL IN LONDON AND FRANKFURT DESPITE RATE CUTS A WALL STREET JOURNAL NEWS ROUNDUP SNAPPING A STRING OF FIVE DECLINES IN A ROW STOCK PRICES IN TOKYO ROSE MARGINALLY FRIDAY ON THIN VOLUME BUT LONDON EQUITIES SLUMPED 13 AS BEARS RUSHED IN ON ECONOMIC ANXIETIES AND PROFITTAKING FRANKFURT INVESTORS IGNORED THE THURSDAY CUT IN GERMAN INTEREST RATES THAT RIPPLED THROUGH EUROPE AND SENT SHARE PRICES LOWER IN TOKYO FRIDAY THE NIKKEI 225STOCK INDEX WHICH LOST 18170 POINTS THURSDAY GAINED 11284 TO 1970415 IN TOKYO MONDAY THE NIKKEI ROSE 4869 POINTS TO CLOSE THE MORNING SESSION AT 1975284 FIRST SECTION VOLUME FRIDAY WHICH TOTALED 38276 MILLION SHARES THURSDAY SANK TO AN ESTIMATED 320 MILLION SHARES THE LOWEST TURNOVER SINCE THE NIKKEI BEGAN A RALLY ABOUT SIX WEEKS AGO THAT LASTED UNTIL APRIL 16 DECLINING ISSUES NARROWLY OUTNUMBERED ADVANCING ISSUES 526495 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH FELL 953 POINTS THURSDAY ROSE 966 TO 153269 INVESTORS HUGGED THE SIDELINES AMID CONTINUED SHARP DOLLARYEN MOVEMENTS IN FOREIGNEXCHANGE DEALINGS AND AHEAD OF THE WEEKEND AND THE GOLDEN WEEK HOLIDAYS IN JAPAN THAT START THURSDAY FOOD ELECTRIC POWER AND RETAILING STOCKS WERE AMONG TOKYO'S GAINERS ALONG WITH BANKS ON GROWING EXPECTATIONS OF A JAPANESE INTERESTRATE CUT THOUGH THE BANK OF JAPAN SAID FRIDAY THAT IT WOULDN'T REDUCE RATES JUST TO OFFSET THE YEN'S STRENGTH EXPORTERS WHICH HAVE BEEN HIT HARDEST BY THE YEN'S ADVANCE ENDED NARROWLY MIXED ON THE DOLLAR'S SHARP SWINGS AGAINST THE YEN THE YEN'S INCREASES TO SUCCESSIVE RECORD HIGHS LAST WEEK PUSHED STOCKS LOWER ON FEARS THAT EXPORTERS' OVERSEAS EARNINGS WILL BE HURT IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX LOST 373 POINTS TO 28438 THE FT 30STOCK INDEX DROPPED 218 POINTS TO 22405 VOLUME WAS 6993 MILLION SHARES COMPARED WITH 7083 MILLION SHARES A DAY EARLIER THE DECLINES WERE ATTRIBUTED TO WALL STREET'S DROP A DAY EARLIER AND WEAK OPENING FRIDAY PROFITTAKING AND IRONICALLY RISING DISAPPOINTMENT THAT THE BRITISH ECONOMY IS GROWING STRONG ENOUGH TO DISSUADE THE GOVERNMENT FROM CUTTING INTEREST RATES AGAIN BRITISH RETAIL SALES FOR MARCH FOR EXAMPLE WERE MUCH STRONGER THAN THE MARKET HAD EXPECTED ALSO SOME LARGE ORDERS BY US INVESTMENT FIRMS TO SELL THE STOCKINDEX FUTURES CONTRACT SENT OTHER LONDON INVESTORS SCURRYING FOR COVER IN FRANKFURT THE DAX 30STOCK INDEX FELL 964 POINTS TO 165710 BECAUSE THE RATE CUTS LAST THURSDAY BY THE BUNDESBANK GERMANY'S CENTRAL BANK HADN'T BEEN EXPECTED AND CAME AFTER STOCK DEALINGS ENDED THAT DAY THE MARKET'S LIMP REACTION FRIDAY SURPRISED PARTICIPANTS AS THE BANK'S MOVE BODES WELL FOR AIDING COMPANIES AND THE ECONOMY EXTENDING TO THE EUROPEAN ECONOMY INVESTORS WORRIED THAT IF FRANKFURT SHARE PRICES CAN'T RALLY ON GOOD NEWS THEN THEY WILL DO EVEN MORE POORLY IF BAD ECONOMIC NEWS EMERGES AS EXPECTED THIS WEEK GERMAN STATE INFLATION DATA TO BE RELEASED TODAY ARE EXPECTED TO SHOW AN INCREASE AS ARE UNEMPLOYMENT FIGURES IN PARIS STOCKS GAVE UP MORE THAN THE PREVIOUS DAY'S GAINS RESUMING THEIR DOWNWARD TREND AND SENDING THE MAIN MARKET INDEX DOWN 14 DESPITE A THIRD FRENCH INTERESTRATE CUT IN 10 DAYS IT WAS THE BOURSE'S LOWEST CLOSING LEVEL SINCE FEB 17 IN AMSTERDAM SHARE PRICES TUMBLED BROADLY AS THE DOLLAR DECLINED AND LONDON AND NEW YORK STOCK PRICES FELL DEVELOPMENTS THAT OVERSHADOWED THE THURSDAY ROUND OF EUROPEAN REDUCTIONS IN INTEREST RATES STOCKHOLM EQUITIES ENDED A FOURDAY ADVANCE FINISHING LOWER AFTER OPENING CAUTIOUSLY HIGHER BECAUSE OF CUTS IN SWEDEN'S INTEREST RATES THEN REVERSING ON DISCOURAGING US ECONOMIC DATA ZURICH STOCKS FELL AMID SHARPLY LOWER VOLUME AS MANY PLAYERS STAYED OUT OF THE MARKET BECAUSE OF UNCERTAINTY AHEAD OF YESTERDAY'S RUSSIAN REFERENDUM BUT IN MADRID STOCKS SOARED BOOSTED BY SPECULATION ABOUT A DEVALUATION OF THE SPANISH PESETA AND EXPECTATIONS OF INTERESTRATE CUTS THAT WOULD FOLLOW SUCH A MOVE IN MILAN PRICES ENDED HIGHER ON A WAVE OF BUYING LATE IN THE SESSION AFTER A NERVOUS START AS MILAN INVESTORS AWAITED DEVELOPMENTS IN ITALY'S NEW GOVERNMENT DEMAND FROM BOTH FOREIGN AND ITALIAN INVESTORS TURNED THE MARKET'S MOOD UNDERPINNED BY AN ITALIAN RATE REDUCTION A DAY EARLIER SYDNEY STOCKS EASED AFTER A RECENT RALLY THOUGH THE GOLD SECTOR CONTINUED TO RISE HONG KONG SHARES FINISHED MIXED AS THE MARKET SHOOK OFF A US MOVE TO IMPOSE ECONOMIC SANCTIONS ON CHINA SINGAPORE PRICES BOUNCED BACK FROM STEEP EARLY DROPS TO CLOSE BROADLY MIXED SEOUL EQUITIES DECLINED ON CAUTIOUSNESS FOLLOWING SHARP GAINS RECENTLY TAIPEI SHARES FELL ON HEAVY PROFITTAKING A FACTOR THAT ALSO SENT WELLINGTON STOCKS DOWN AFTER A RECENT RALLY 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 9304260019 930426 THAILAND LENDS ITS BOND MARKET A HELPING HAND NATION GIVES NEW DIRECTION BY MODIFYING RULES ON BANKS AND ISSUERS BY JULIA LEUNG STAFF REPORTER OF THE WALL STREET JOURNAL BANGKOK THAILAND AFTER YEARS AS A SMALLTIME PLAYER IN THAILAND'S WORLD OF FINANCE THE THAI CORPORATE BOND MARKET IS BEING GROOMED FOR A MORE PROMINENT ROLE IN THE PAST THREE MONTHS A SPRINKLING OF BOND ISSUES HAS ADDED GIRTH TO THE TINY AND LONGILLIQUID MARKET AT THE HEART OF THE CHANGE IS AN ARRAY OF GOVERNMENT POLICIES BEGUN IN MID1992 THAT MAKE ISSUING BONDS MORE ATTRACTIVE IN PARTICULAR THE GOVERNMENT HAS PERMITTED BANKS TO ACT AS FINANCIAL ADVISERS ON BOND ISSUES AND HAS INCREASED THE NUMBER OF INSTITUTIONAL INVESTORS BY LICENSING NEW MUTUAL FUND COMPANIES ALL THESE YEARS WE'VE BEEN TALKING ABOUT THE CORPORATE BOND MARKET AND GETTING READY FOR IT SAID JADA WATTANASIRITHAM A SENIOR EXECUTIVE VICE PRESIDENT OF SIAM COMMERCIAL BANK LTD I THINK FINALLY EVERYTHING IS IN PLACE AND THE TIME HAS REALLY COME FOR IT TO TAKE OFF BUT THERE ARE IMPEDIMENTS BLUECHIP THAI COMPANIES WHICH HAVE EASY ACCESS TO BANK LOANS AND FOREIGN FUNDS HAVE SHOWN LITTLE INTEREST IN TAPPING BONDS' POTENTIAL IN ADDITION THE MARKET WILL BE HANDICAPPED AS LONG AS THE COUNTRY MAINTAINS ITS WITHHOLDING TAX ON BONDHOLDERS' INTEREST NONETHELESS THE PROSPECTS HAVE IMPROVED PARTICULARLY FOR FOREIGN BANKS INTERESTED IN CARVING A NICHE AS FINANCIAL ADVISERS BANKERS SAY CITICORP'S CITIBANK UNIT FOR EXAMPLE IS EXPLORING THE BUSINESS OF ADVISING THAI BANKS ON REPACKAGING HOUSING LOANS INTO SECURITIES FOR INVESTORS THERE ARE BIG OPPORTUNITIES FOR FOREIGN BANKERS IN DEBT SECURITIZATION BUT THERE ARE HICCUPS TOO SAID DAVID HENDRIX CITIBANK'S COUNTRY MANAGER IN BANGKOK THAILAND'S BOND MARKET COMPRISES MOSTLY TREASURY AND GOVERNMENTENTERPRISE BONDS THE LATTER ARE USED TO FINANCE GOVERNMENT FACILITIES AND SERVICES DOMESTIC BANKS AND INSURANCE COMPANIES ARE REQUIRED TO BUY THE PUBLICDEBT ISSUES TO FULFILL RESERVE REQUIREMENTS DUE TO SUCH FORCED BUYING THE RETURNS ARE VERY LOW ON THE ISSUES AND THERE IS NO SECONDARY MARKET FOR THEM AS OF THE END OF SEPTEMBER OUTSTANDING GOVERNMENT BONDS AMOUNTED TO ONLY 138 BILLION BAHT US548 BILLION CORPORATEBOND ISSUES ARE EVEN MORE SCARCE UNTIL THIS YEAR ONLY EIGHT COMPANIES HAD TAPPED THE BOND MARKET LISTING 26 ISSUES VALUED AT ABOUT 18 BILLION BAHT THE NUMBERS ARE EXPECTED TO RISE THIS YEAR BANKERS ARE PREDICTING A STRONG TREND IN EQUITYLINKED BOND ISSUES BEGUN IN FEBRUARY BY LAND & HOUSES PLC THE BLUECHIP PROPERTY CONCERN ISSUED TWO BILLION BAHT IN FLOATINGRATE NOTES WITH WARRANTS A WARRANT GIVES THE HOLDER THE RIGHT TO BUY AN ISSUER'S SHARES AT A SPECIFIED PRICE WITHIN A SET TIME PERIOD THE WARRANTS ADD A SPECULATIVE DIMENSION THAT HAS MADE THESE ISSUES ATTRACTIVE SAID ANUSORN BURANAKANONDA A VICE PRESIDENT OF CITICORP FINANCE & SECURITIES THAILAND LTD ADDING THAT SEVERAL SIMILAR ISSUES ARE BEING PREPARED MEANWHILE AS BANK OF THAILAND THE CENTRAL BANK INAUGURATES TOUGHER CAPITALADEQUACY REQUIREMENTS THIS YEAR A SPATE OF BOND ISSUES BY THAI BANKS IS EXPECTED WITH BUSINESS PROSPECTS FOR CORPORATE BONDS IMPROVING MAJOR DOMESTIC COMMERCIAL BANKS ARE GEARING UP FOR A PIECE OF THE ACTION BANGKOK BANK LTD THAILAND'S BIGGEST COMMERCIAL BANK RECENTLY ANNOUNCED THE CREATION OF AN INVESTMENTBANKING GROUP A NEW CAPITALMARKET TEAM OF SIX PEOPLE WAS FORMED SPECIFICALLY TO SEEK ADVISORY BUSINESS THERE IS AN ELEMENT OF NECESSITY TO SUCH MOVES THOUGH IF BANK CUSTOMERS CHOOSE TO DIVERSIFY FROM LOANS TO OTHER FUNDING SOURCES BANKS STAND TO LOSE BUSINESS UNLESS THEY FOLLOW THEIR CLIENTS INTO THE NEW FIELD SIAM COMMERCIAL BANK FOR INSTANCE DERIVES ABOUT 90 OF ITS PROFIT FROM COMMERCIAL LENDING SAID AN OFFICIAL OF THAI INVESTMENT & SECURITIES LTD A MAJOR FINANCE COMPANY THESE BANKS ARE AFRAID OF LOSING THEIR BIG CLIENTS LATE LAST YEAR THE CENTRAL BANK BEGAN ISSUING NEW LICENSES THAT ALLOWED COMMERCIAL BANKS TO ADVISE ON AND DISTRIBUTE BUT NOT UNDERWRITE BOND ISSUES IN LETTING THE BANKS IN THAI AUTHORITIES HOPE TO HELP SECONDARYMARKET TRADING BY INCREASING THE NUMBER OF PARTICIPANTS THE BANKS' BRANCH NETWORKS MIGHT ALSO HELP THE RETAIL DISTRIBUTION OF SECURITIES MEANWHILE THE APPETITE FOR SECURITIES HAS IMPROVED WITH THE FORMATION OF SEVEN NEW MUTUAL FUND COMPANIES LAST YEAR THE BOND MARKET ALSO GOT A LIFT FROM THE PASSAGE OF THE SECURITIES AND EXCHANGE ACT LAST YEAR WHICH MADE IT EASIER TO BE DESIGNATED A PUBLIC COMPANY PUBLICCOMPANY STATUS IS A PREREQUISITE FOR ISSUING NOTES AND BONDS IN THAILAND THE AMENDMENT HAS GREATLY EXPANDED THE POOL OF POTENTIAL BOND ISSUERS SAID CHAPTIK NITIBHON THE BANGKOKBASED GENERAL MANAGER AT BANQUE INDOSUEZ 9304260018 930426 MANAGER'S JOURNAL IF SHE WERE MY DAUGHTER I'D BY PATRICIA KAVANAGH THIS WILL NOT ENDEAR ME TO ORTHODOX FEMINISTS BUT I'M NOT TAKING MY DAUGHTER TO WORK WEDNESDAY THE PURPOSE OF TAKE OUR DAUGHTERS TO WORK DAY IS TO EXPOSE GIRLS BETWEEN THE AGES OF NINE AND 15 TO THE OPPORTUNITIES AND REALITIES OF THE WORKPLACE THIS IS A LAUDABLE GOAL BUT THE PROGRAM WON'T ADVANCE IT FOR ONE THING MOST OFFICE JOBS LOOK ALIKE AND AREN'T VERY INTERESTING TO WATCH SO IF YOU ARE A TRADER ACCOUNT EXECUTIVE ATTORNEY OR SECRETARY AND YOUR PRETEEN IS COMING TO OBSERVE SHE WILL BE RESTLESS BY 1015 AND WILL CONCLUDE THAT EMPLOYMENT IS A FORM OF IMPRISONMENT YOUR EMPLOYER MIGHT ARRANGE A PROGRAM ON CAREERS FOR A GROUP OF GIRLS THIS IS A NICE THING TO DO BUT EMPLOYERS IS THIS THE BEST WAY TO ASSIST YOUR EMPLOYEES IF YOU WANT TO DO THIS WOULDN'T YOU PREFER TO DO IT AT A TIME OF YOUR OWN CHOOSING AND COULDN'T THIS BE OFFERED ON ONE OF THE 80ODD BUSINESS DAYS A YEAR WHEN CHILDREN ARE NOT IN SCHOOL WHAT CAN YOU THE EMPLOYER POSSIBLY PRESENT TO YOUNG GIRLS THAT WOULD BE OF GREATER BENEFIT THAN A FULL DAY OF ACADEMIC INSTRUCTION AS AN EMPLOYER I AM STRUCK BY THE FACT THAT THIS IS THE LATEST ROUND IN THE EFFORT TO CONVINCE BUSINESS OWNERS AND MANAGERS THAT THEY BEAR RESPONSIBILITY FOR FAMILY ISSUES AND A BROAD SOCIAL AGENDA IF OUR EMPLOYEES BRING THEIR FAMILIES TO WORK I WANT TO CHOOSE THE TIME AND PLACE SO THAT PRODUCTIVITY IS NOT AFFECTED THE COMFORT OF EMPLOYEES WHO FOR WHATEVER REASON ARE NOT BRINGING RELATIVES MUST ALSO BE CONSIDERED AND THERE IS A BROADER POINT WHILE I HOPE THAT WE EMPLOY ONLY DECENT PEOPLE HOW THEY RAISE THEIR FAMILIES IS NOT MY AFFAIR THE EMPLOYMENT CONTRACT IS TO DO CERTAIN TASKS FOR AGREEDON COMPENSATION EMPLOYERS ARE NOT RESPONSIBLE FOR NOR DO THEY HAVE A RIGHT TO OPINE ON THE WAY EMPLOYEES LIVE SO LONG AS THEIR BEHAVIOR DOES NOT HURT THE ENTERPRISE WHEN A BUSINESS UNDERTAKES TO PROMOTE THE SELFESTEEM OF YOUNG GIRLS IT ALSO SUBTLY ASSUMES A RIGHT TO EVALUATE EMPLOYEES IN TERMS OF HOW THEY CONFORM TO THE EMPLOYER'S SOCIAL ATTITUDES THE WORKPLACE FUNCTIONS BETTER AND OUR SOCIETY IS FREER IF EMPLOYERS STAY AWAY FROM THE DEEPLY PERSONAL QUESTION OF A PARENT'S ASPIRATIONS FOR HIS OR HER DAUGHTER IF TAKE OUR DAUGHTERS TO WORK DAY IS A BAD IDEA HOW CAN PARENTS CONVEY TO GIRLS THE WONDERFULLY RICH WAYS IN WHICH THEY MIGHT SOMEDAY CONTRIBUTE TO THE WORKING WORLD PARENTS SHOULD ADAPT THE TIMEHONORED METHODS THEY USE WITH BOYS TEAM SPORTS ODD JOBS AND MALEBONDING OUTINGS WHETHER THEY GO FISHING OR WATCH PROFESSIONAL SPORTS BOYS LEARN ABOUT WORK BY BEING INCLUDED IN GROUPS OF ADULT MEN THE BEST WAY TO PROMOTE THE FUTURE CAREER OF A DAUGHTER IS BY HELPING HER SUCCEED IN REALWORLD SITUATIONS WHERE ADULT STANDARDS ARE APPLIED HERE ARE A FEW APPROACHES THAT CAN HELP PREPARE YOUR DAUGHTER FOR HER WORKING LIFE TALK ABOUT YOUR WORK IN FRONT OF YOUR DAUGHTER AT HOME TALK TO YOUR SPOUSE ABOUT YOUR WORK TALK ON THE PHONE TO YOUR FRIENDS ABOUT YOUR WORK TAKE THE OCCASIONAL BUSINESS CALL AT HOME EAT DINNER WITH YOUR DAUGHTER TEACH HER TABLE MANNERS AND POSE HYPOTHETICAL OR ACTUAL PROBLEMS FROM YOUR WORKING LIFE FOR HER TO SOLVE INVITE PEOPLE WHO HAVE INTERESTING CAREERS TO DINNER AND ALLOW YOUR CHILD TO EAVESDROP IF YOU CAN GET YOUR DAUGHTER TO SERVE THE MEAL FOR PAY SHE WILL DEVELOP NEGOTIATING SKILLS SHE WILL HAVE PLENTY OF TIME TO LISTEN GET HER TO TAKE OUT THE TRASH IT IS NO FAVOR TO RELIEVE A CHILD OF HOUSEHOLD RESPONSIBILITIES SO THAT ALL HER EFFORT CAN BE DIRECTED TOWARD MEASURED ACHIEVEMENT SPARE HER THE SHOCK OF LEARNING THAT EVERY JOB HAS MENIAL ASPECTS DO FAMILY PROJECTS AROUND THE HOUSE DECIDE TOGETHER THE TASKS TO BE DONE THE DATE AND TIME THE STANDARD OF PERFORMANCE AND THE COMPENSATION CRITICAL RULE EVERYONE WORKS TO HIS OR HER ABILITY AT THE AGREEDON TIME IF YOU DO THIS REGULARLY YOUR DAUGHTER WILL LEARN EVERYTHING SHE NEEDS TO KNOW ABOUT THE COMMUNAL AND YES THE COERCIVE NATURE OF WORK FIND A SERVICE OPPORTUNITY FOR YOUR CHILD TRUE MOST STRUCTURED VOLUNTEER JOBS ARE AVAILABLE ONLY FOR OLDER TEENS BUT THROUGH SCHOOL OR CHURCH YOU CAN FIND WAYS IN WHICH YOUR CHILD CAN WORK IN THE WIDER WORLD TOWARD A DEFINED RESULT OPERATING A BOOTH AT THE NEIGHBORHOOD FAIR SERVING A MEAL TO A COMMUNITY GROUP WORKING AT THE SPRING PLAYGROUND CLEANUP TAKE YOUR DAUGHTER TO WORK TAKE HER WHEN YOU HAVE TIME TO SHOW HER SOMETHING WHEN YOU ARE NOT EXPECTED TO BE PRODUCTIVE MOST IMPORTANT TAKE HER WHEN SHE IS READY TO GO AND LEAVE BEFORE SHE WANTS TO MS KAVANAGH IS PRESIDENT OF THE NEW YORKBASED INTEREST RATE PUBLISHING CORP 9304260016 930426 JOHNSTON INDUSTRIES WILL REPORT FLAT NET FOR FISCAL 3RD QUARTER NEW YORK JOHNSTON INDUSTRIES INC SAID THE IMPROVING ECONOMY IS MAKING FOR BRISK BUSINESS BUT SOME WRITEDOWNS WILL RESULT IN FLAT EARNINGS FOR THE RECENTLY COMPLETED FISCAL THIRD QUARTER IN AN INTERVIEW DAVID L CHANDLER CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE DIVERSIFIED TEXTILE CONCERN EXPECTS TO REPORT EARNINGS OF ABOUT 25 MILLION OR 35 CENTS A SHARE FOR THE QUARTER ENDED MARCH 31 THE COMPANY EXPECTS TO REPORT A SALES INCREASE OF ABOUT 10 TO 397 MILLION FOR THE YEAREARLIER QUARTER JOHNSTON REPORTED NET INCOME OF 25 MILLION OR 34 CENTS A SHARE ON SALES OF 361 MILLION THE 1992 THIRD QUARTER INCLUDED AN 850000 GAIN FROM A CHANGE IN ACCOUNTING METHODS RELATED TO THE COMPANY'S 38 STAKE IN JUPITER NATIONAL INC A CLOSEDEND VENTURECAPITAL INVESTMENT COMPANY JOHNSTON INDUSTRIES SAID THAT DESPITE 50 MILLION YARDS IN TEXTILE ORDER BACKLOGS AND VIRTUALLY CONTINUOUS OPERATION AT SEVERAL OF ITS FACILITIES WRITEDOWNS OF 65 TO 7 CENTS A SHARE WILL KEEP EARNINGS FLAT MR CHANDLER SAID THE WRITEDOWNS INCLUDE STARTUP COSTS AT ITS TECH TEXTILES USA OPERATION AND ADJUSTMENTS FOR SOME HEALTHINSURANCE COSTS WITH BUSINESS PICKING UP THIS IS A BETTER TIME TO TAKE THESE KINDS OF WRITEDOWNS SAID MR CHANDLER ADDING THAT PRETAX OPERATING PROFIT ROSE ABOUT 16 IN THE FISCAL THIRD QUARTER WE SEE THE THIRD QUARTER AS BEING VERY POSITIVE SAID MR CHANDLER SALES WERE UP DEMAND IS GOOD AND THE ECONOMY CONTINUES TO IMPROVE MR CHANDLER AND GERALD B ANDREWS JOHNSTON'S PRESIDENT AND CHIEF OPERATING OFFICER SAID SURGING DEMAND FROM ITS AUTOMOTIVE CLIENTS IS HELPING PUSH PRODUCTION AT THE COMPANY'S OPP AND MICOLAS MILLS DIVISION WE'RE BASICALLY SOLD OUT THERE SAID MR ANDREWS WE'RE WORKING SEVEN DAYS A WEEK FOUR SHIFTS A DAY THE COMPANY'S SOUTHERN PHENIX TEXTILES DIVISION CONTINUES TO RALLY FROM A WEAK FALL AND SALES ARE UP ABOUT 10 AT THE UNIT AND THE BACKLOGS HAVE ALSO INCREASED THE COMPANY SAID BUT MR CHANDLER SAID SOUTHERN PHENIX STILL WASN'T MATCHING OPPS AND MICOLAS MILLS' SUCCESS THE COMPANY'S THIRD MAJOR TEXTILE OPERATION TECH TEXTILES CONTINUES TO MOVE TOWARD INCREASING OPERATIONS 9304260015 930426 CORRECTIONS & AMPLIFICATIONS WARNER BROS INC'S DENNIS THE MENACE WILL OPEN JUNE 25 A TABLE ACCOMPANYING THURSDAY'S ARTICLE ON SUMMER MOVIES INCORRECTLY REPORTED THE OPENING DATE AS JULY 25 NORANDA FOREST INC REPORTED ITS RESULTS FOR THE FIRST QUARTER THE TABLE IN FRIDAY'S DIGEST OF EARNINGS REPORTS INCORRECTLY IDENTIFIED THE COMPANY AS NORANDA INC A CORRECT TABLE APPEARS IN THIS ISSUE 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 9304260014 930426 BUSINESS BRIEF BANCORP HAWAII INC FIRM SIGNS LETTER TO ACQUIRE INTERNATIONAL HOLDING CAPITAL BANCORP HAWAII INC SAID IT SIGNED A NONBINDING LETTER OF INTENT TO ACQUIRE INTERNATIONAL HOLDING CAPITAL CORP FOR 43 MILLION UNDER THE ACQUISITION BANCORP HAWAII IN HONOLULU OR ONE OF ITS UNITS WOULD ACQUIRE ALL OF THE STOCK OF INTERNATIONAL HOLDING IN HONOLULU A THRIFTHOLDING COMPANY INTERNATIONAL HOLDING'S STOCKHOLDERS WILL RECEIVE BANCORP HAWAII STOCK OR CASH OR A COMBINATION OF BOTH THE PROPOSED PURCHASE PRICE IS SUBJECT TO CERTAIN ADJUSTMENTS BANCORP HAWAII SAID THE PROPOSED DEAL IS SUBJECT TO CERTAIN CONDITIONS INCLUDING APPROVAL BY THE BOARDS OF BOTH COMPANIES AND THE STOCKHOLDERS OF INTERNATIONAL HOLDING AS WELL AS REGULATORY CLEARANCE 9304260013 930426 ENTERPRISE FOCUS ON FRANCHISING FOR EVERY NICHE THERE'S A FRANCHISER WANTING TO FILL IT BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHEN IT COMES TO CONCOCTING WACKY FRANCHISE CONCEPTS THE WAGS AT SATURDAY NIGHT LIVE MIGHT BE HARDPRESSED TO MATCH ACTUAL MARKETERS AT THE INTERNATIONAL FRANCHISE EXPO A THREEDAY TRADE SHOW THAT CLOSED HERE YESTERDAY ONE COMPANY TOUTING THE HOTTEST IDEA SINCE TABASCO SAUCE SOUGHT FRANCHISEES TO SELL CHEAP CARDBOARD COFFINS ANOTHER JOINING THE BACKLASH AGAINST HEALTHYSOUNDING FOOD TRUMPETED A NAME ALREADY ESTABLISHED IN CALIFORNIA AND NEVADA THE FATBURGER NONE OF THIS WAS TONGUEINCHEEK THOUGH EVEN SOME INDUSTRY VETERANS DID A DOUBLE TAKE OR TWO THE BUSINESS OF FRANCHISING IS SERIOUS AND FRANCHISERS ARE HELLBENT ON EXPANDING INTO NICHES OF EVERY SORT I'M CONSTANTLY AMAZED AT WHAT THESE PEOPLE COME UP WITH SAID WILLIAM B CHERKASKY PRESIDENT OF THE INTERNATIONAL FRANCHISE ASSOCIATION THE FRANCHISER TRADE GROUP THAT SPONSORED THE SHOW THE EXPO ATTRACTED MORE THAN 20000 OF WOULDBE FRANCHISE OWNERS THE EXACT FIGURE WASN'T AVAILABLE A LOT OF PEOPLE ARE LOOKING FOR FRANCHISES NOW SAID MICHAEL F MANNING VICE PRESIDENT FOR FRANCHISE DEVELOPMENT OF BIG O TIRES INC A DENVER FRANCHISER OF TIRE STORES BIGCOMPANY LAYOFFS CONTINUE TO PUSH PEOPLE INTO FRANCHISING HE SAID AND LOWER INTEREST RATES THIS YEAR MAKE FRANCHISES A LITTLE MORE AFFORDABLE FRANCHISEES PAY FEES AND ROYALTIES TO FRANCHISERS WHO LICENSE OUT BUSINESS FORMATS AS ALWAYS FRANCHISE OFFERINGS RANGE FROM THE PROVEN TO THE TOTALLY UNTESTED AND POSSIBLY EVEN FRAUDULENT SPECIALISTS WARN HERE IS A SAMPLE OF WHAT FRANCHISE SHOPPERS WERE BEING OFFERED A MODULAR FRANCHISE PROMISES TO WARD OFF BUST CYCLES NO ONE KNOWS BETTER THAN YOGURT CHAINS THAT ONEPRODUCT CONCEPTS CAN SOUR IF TOO MUCH COMPETITION ARISES OR CONSUMER TASTES CHANGE NOW BRICE FOODS INC DALLAS OFFERS A SOLUTION MODULAR STORES CONTAINING MULTIPLE FRANCHISE CONCEPTS IF ANY CONCEPT FLOPS WE CAN EXTRACT THE MODULE AND REPLACE IT WITH ONE THAT'S IN DEMAND SAID JAMES H AMOS JR CHIEF OPERATING OFFICER SOME FASTFOOD FRANCHISEES ALREADY HEDGE THEIR BETS BY WORKING WITH MORE THAN ONE FRANCHISER AT THE SAME SITES MEANWHILE SOME FRANCHISERS HAVE TRIED SELLING EACH OTHER'S PRODUCTS TO COMPLEMENT THEIR OWN NOW BRICE GOES FURTHER WITH SOCALLED MULTIPLE FRANCHISING BY OFFERING FRANCHISEES FOUR FORMATS AT ONCE I CAN'T BELIEVE IT'S YOGURT BOXIES CAFE JAVA COAST FINE COFFEES AND CRUMBLES BAKERY THE INVESTMENT REQUIRED BY A FRANCHISEE ABOUT 250000 EVENTUALLY SEVERAL MORE FORMATS WILL BE ADDED TO THE MIX MR AMOS SAID STORE FIXTURES WOULD EVEN BE ON WHEELS THAT WOULD ENABLE PRODUCT LINES TO APPEAR OR DISAPPEAR RAPIDLY OUTER SPACE INSPIRES A NEW CONCEPT FOR RETAIL SPACE PUBLISHER STARLOG GROUP IN NEW YORK WHOSE LEAD MAGAZINE IS AIMED AT SCIENCEFICTION FANS LAST YEAR OPENED A RIDGEWOOD NJ STORE FEATURING COMIC BOOKS SCIENCE FICTION AND RELATED TOYS NOW IT IS SEEKING TO FRANCHISE THE FORMAT PLEDGING TO PUT MOMANDPOP RETAILERS IN THE CATEGORY OUT OF BUSINESS IT SAYS THE FRANCHISED UNITS WILL BE MUCH LARGER AND BETTER STOCKED THAN MOST INDEPENDENTS THE INVESTMENT REQUIRED IS BETWEEN 155000 AND 225000 DEPENDING ON STORE SIZE SAID STARLOG PUBLISHER NORMAN JACOBS THE INCREASING SUCCESS OF SCIENCEFICTION SHOWS ON TV SIGNALS CONSUMERS WILL SUPPORT SUCH STORES HE SAID HIGH COSTS OF DYING GIVE THIS FRANCHISER AN OPENING TIMBALYTE INTERNATIONAL A UNIT OF TOPCOR GROUP OF SOUTH AFRICA CLAIMS IT CAN'T MISS WITH ITS CARDBOARD COFFINS FRANCHISED DISTRIBUTORS POSSIBLY WORKING OUT OF THEIR GARAGES AT HOME WOULD PAY 38 EACH FOR COFFINS AND SELL THEM TO FUNERAL HOMES FOR 115 OR MORE SAID SPOKESMAN TOM WILLIAMS THAT IS WAY BELOW THE USUAL COST OF WOOD AND METAL COFFINS HE SAID IT WOULD COST 7500 TO BECOME A FRANCHISEE FOR A METROPOLITAN AREA WHY SHOULD THE COFFINS SELL EXPLAINED MR WILLIAMS PEOPLE ARE TIRED OF PAYING A FORTUNE WHEN A LOVED ONE DIES BUDGET CRUNCHES AT SCHOOLS INSPIRE A NEW FRANCHISING IDEA EDUCATE AMERICA FIRST INC LITTLETON COLO OVERSEES A FRANCHISE SYSTEM OFFERING MANY VENDORS' PRODUCTS AND SERVICES TO PEOPLE SUCH AS PUPILS' PARENTS WHO ARE WORRIED ABOUT SCHOOL FINANCE THE GIMMICK TESTED ALREADY IN WASHINGTON STATE IS THAT DESIGNATED SCHOOLS NET PART OF THE PROCEEDS THAT GIVES THE CUSTOMER THE INCENTIVE TO BUY THROUGH THE FRANCHISEE FOR EXAMPLE SCHOOLS WOULD GET ABOUT 6 OF THE PROCEEDS FROM SALES OF SWEATSHIRTS BEARING THEIR NAMES SAID RICHARD KOSKELLA A REGIONAL DEVELOPER SEEKING FRANCHISEES FOR THE SYSTEM A 9000 INVESTMENT WOULD COVER THE RIGHTS TO SELL IN A 30SCHOOL REGION MR KOSKELLA SAID THIS SYSTEM'S NAME MAY BE HARDER TO SWALLOW THAN THE FOOD THE NAME FATBURGER IS THE BURDEN AS WELL AS THE PRIDE OF FATBURGER CORP LOS ANGELES IN TODAY'S HEALTHCONSCIOUS MARKETPLACE IT BECOMES A MARKETING CHALLENGE CONCEDED FOREST HAMILTON PRESIDENT HE AND A PARTNER BOUGHT THE COMPANY THREE YEARS AGO AT THE SHOW THEY WERE SEEKING TO GREASE THE WAY TO FRANCHISE OPERATIONS IN MORE STATES ACTUALLY THE NAME BECOMES A PLUS AS SOON AS CUSTOMERS REALIZE IT REFERS TO THE BURGER'S SIZE RATHER THAN ITS PERCENTAGE OF LIPIDS MR HAMILTON SAID MEANWHILE THE FRANCHISE HAS OTHER THINGS GOING FOR IT SUCH AS JUKEBOXES IN THE OUTLETS AND A GUNGHO STYLE OF STORE MANAGEMENT IT COSTS BETWEEN 150000 AND 350000 TO OPEN AN OUTLET DEPENDING ON HOW FAT THE RETAIL SPACE IS BRIEFS HARVARD INTERNATIONAL TECHNOLOGIES LTD THE CANADIAN MAKER OF A 9000 SPUD STOP VENDING MACHINE THAT MAKES FRENCH FRIES IS SEEKING MASTER LICENSEES WORLDWIDE THOUGH THE COMPANY SAYS ITS US MARKETING WON'T INVOLVE FRANCHISING TWO LOUISIANA RIVALS LA SMOOTHIE CORP AND SMOOTHIE KING FRANCHISES INC SQUARE OFF WITH INCREASED EFFORTS TO SELL FRANCHISES BASED AROUND VITAMIN DRINKS SUCH AS SMOOTHIE KING'S MUSCLE PUNCH WORLDWIDE PRODUCTS REHEATER LTD SCOTTSDALE ARIZ SEEKS DISTRIBUTORS NOT ACTUALLY FRANCHISEES FOR REUSABLE THERAPEUTIC HEAT PACKS THAT STORE HEAT INSIDE SALT 9304260012 930426 WHO'S NEWS ADVISER TO HOME SHOPPING OWNED PART OF A SUPPLIER THAT EVADED US DUTIES BY JOHNNIE L ROBERTS AND MARK ROBICHAUX STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK FRANCIS SANTANGELO A FINANCIAL CONSULTANT TO HOME SHOPPING NETWORK INC AND ADVISER TO ITS CHAIRMAN WAS PART OWNER OF A COMPANY INVOLVED IN DEFRAUDING THE US GOVERNMENT OUT OF 200000 IN DUTIES ON CERAMIC FIGURINES IT SUPPLIED TO THE BESIEGED VIDEO RETAILER YESTERDAY MR SANTANGELO CONFIRMED THAT HE WAS A PART OWNER IN A1 INTERNATIONAL ENTERPRISES LTD AND THAT A FEDERAL COURT IN NEW YORK HAS JUST CONVICTED TWO OF HIS PARTNERS IN THAT COMPANY OF TAXEVASION CHARGES BUT MR SANTANGELO SAID HE WASN'T CHARGED IN THE FEDERAL CRIMINAL INVESTIGATION OF THAT CASE WHICH CULMINATED FRIDAY IN THE FEDERAL PRISON SENTENCE OF ONE OF THE PARTNERS JOHN G CASSIDY MR SANTANGELO YESTERDAY DUBBED HIS FORMER PARTNERS MULTIPLE FELONS AND TAX EVADERS AND ADDED I HAD NOTHING TO DO WITH RUNNING THAT COMPANY FEDERAL AUTHORITIES WOULDN'T COMMENT ON WHETHER THEIR INVESTIGATION IS CONTINUING INTO MR SANTANGELO HIS PARTNERS AND A1 INTERNATIONAL A NOWDEFUNCT RYE NY SUPPLIER BUT IN FLORIDA AUTHORITIES PRIVATELY INDICATED THAT A1 INTERNATIONAL HAS BECOME ENTANGLED IN A FEDERAL GRAND JURY INVESTIGATION THERE INTO VARIOUS ALLEGATIONS SURROUNDING HOME SHOPPING THE PROBE IS BELIEVED TO FOCUS IN PART ON ALLEGED FINANCIAL TIES BETWEEN VENDORS AND HOME SHOPPING EXECUTIVES MR SANTANGELO HAS BEEN A CLOSE ASSOCIATE AND SOMETIME FISHING PAL OF THE HOME SHOPPING CHAIRMAN ROY M SPEER SINCE THE COMPANY WENT PUBLIC IN 1986 AT THE TIME MR SANTANGELO WAS A VETERAN SPECIALIST ON WALL STREET WHOSE FIRM SANTANGELO & CO MADE A MARKET IN HOME SHOPPING SHARES HE RECENTLY WAS NAMED IN A LAWSUIT FILED BY ALLEN P ALLWEISS A FIRED GENERAL COUNSEL OF HOME SHOPPING IN WHICH IT IS ALLEGED THAT HE HAS MOB TIES AND THAT HE RECEIVED AN IMPROPER LOAN OF 12 MILLION FROM THE COMPANY THOSE IN THE WALL STREET COMMUNITY WHO HAVE KNOWN ME FOR MORE THAN 30 YEARS KNOW THAT ALLWEISS'S SLANDEROUS CRIMEFAMILY ALLEGATION IS AN OUTRAEGOUS LIE MR SANTANGELO SAID THIS IS VERY EMBARRASSING IN DEALINGS INVOLVING A1 INTERNATIONAL HOWEVER A CASE IN FEDERAL COURT IN PHILADELPHIA HAD ALLEGED THAT MR SANTANGELO WAS DEEPLY INVOLVED IN THE IMPROPRIETIES IN WHICH HE DENIES PLAYING A ROLE THAT LAWSUIT WHICH LED TO A 2 MILLION JUDGMENT AGAINST MR SANTANGELO AND HIS PARTNERS IN A1 FURTHER UNDERLINES TIES BETWEEN THE SANTANGELO INTERESTS AND THE SPEER FAMILY A RELATIONSHIP THAT IS NOW UNDER SCRUTINY IN THE LAWSUIT FILED BY HOME SHOPPING'S FORMER GENERAL COUNSEL IN THE CASE A RETAIL BILL COLLECTOR OR FACTOR FILED A LAWSUIT ALLEGING RACKETEERING AND FRAUD ON THE PART OF MR SANTANGELO AND HIS PARTNERS IN A1 INTERNATIONAL AMERICAN TRADE PARTNERS LTD CHARGED THAT THE SANTANGELO GROUP COAXED 15 MILLION IN PAYMENTS OUT OF HOME SHOPPING THAT SHOULD HAVE BEEN PAID TO AMERICAN TRADE A FEDERAL COURT IN PHILADELPHIA AWARDED AMERICAN TRADE PARTNERS A 2 MILLION JUDGMENT AGAINST THE SANTANGELO GROUP AFTER IT FOUND THAT THE PARTNERS SPENT MUCH OF THE MONEY THAT BELONGED TO AMERICAN TRADE ON PERSONAL EXPENSES AMONG THE OUTLAYS WAS A 40000 PAYMENT TO RICHARD M SPEER SON OF THE HOME SHOPPING CHAIRMAN AS PARTIAL PAYMENT FOR A YACHT THAT ONE PARTNER APPARENTLY BOUGHT FROM MR SPEER TO PAY OFF THAT 2 MILLION JUDGMENT MR SANTANGELO CONSEQUENTLY RECEIVED AN IMPROPER LOAN OF 12 MILLION FROM HOME SHOPPING AT THE DIRECTION OF CHAIRMAN SPEER THE UNRELATED LAWSUIT FILED BY THE FORMER GENERAL COUNSEL ALLEGES THE CASES ARE THE LATEST DEVELOPMENT IN A GROWING CONTROVERSY AT HOME SHOPPING INVOLVING ALLEGATIONS OF FINANCIAL IMPROPRIETIES BETWEEN HOME SHOPPING EXECUTIVES AND THE COMPANY'S SUPPLIERS AMONG OTHER THINGS MR SPEER AND FORMER PRESIDENT LOWELL PAXSON HAVE BEEN ACCUSED OF HAVING SECRET INTERESTS IN SUPPLIERS TO THE COMPANY THE COURT IN THE PHILADELPHIA CASE SAID THAT FACTS SHOWED THAT MR SANTANGELO'S PRIMARY FUNCTION AT A1 WAS TO ASSURE PROMPT PAYMENT OF A1 INVOICES BY HOME SHOPPING AND TO ASSIST IN DEVELOPING SALES BY A1 TO HOME SHOPPING FORMER EXECUTIVES AT HOME SHOPPING SAID IT WAS MR SANTANGELO WHO PERSONALLY LINED UP A1 AS A SUPPLIER TO THE SHOPPING NETWORK AND IT WAS KNOWN INSIDE THE COMPANY THAT MR SANTANGELO WAS ALSO A PARTNER IN THE SUPPLIER HE IS DESCRIBED AS A FREQUENT PRESENCE AT THE COMPANY'S HEADQUARTERS WHO WIELDED SIGNIFICANT INFLUENCE WITH MR SPEER IN CHOOSING TO DO BUSINESS WITH MR SANTANGELO HOME SHOPPING'S MR SPEER PICKED AN ASSOCIATE WITH AN INTRIGUING PAST EARLIER IN HIS 25YEAR CAREER ON WALL STREET MR SANTANGELO WAS ONE OF NINE TRADERS INDICTED BY A NEW YORK STATE GRAND JURY IN A CASE IN THE LATE 1970S INVOLVING CHARGES OF FILING FICTITIOUS MARKET TRANSACTIONS HE LATER SETTLED THOSE CHARGES WHICH WERE PART OF A BROADER PROBE OF IMPROPER OPTIONS TRADING BY AGREEING TO PAY A FINE ACCORDING TO PUBLISHED REPORTS AT THE TIME IN THE CASE INVOLVING A1 INTERNATIONAL THE COMPANY FILLED HOME SHOPPING ORDERS FOR MILLIONS OF DOLLARS' WORTH OF CERAMIC FIGURINES ULTIMATELY HOME SHOPPING HAD TO REPAY MILLIONS OF DOLLARS TO CUSTOMERS WHO BOUGHT THE FIGURINES MANY OF WHICH WERE SAID TO BE FLAWED ACCORDING TO FORMER COMPANY EXECUTIVES MR SANTANGELO'S LOSS AN ESTIMATED 6 MILLION HE SUBSEQUENTLY SUFFERED TWO HEART ATTACKS 9304260011 930426 PHARMOR OFFICERS DIRECTORS FACE SUIT BY 17 INSURERS OVER INVESTMENT IN FIRM BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH SEVENTEEN INSURANCE COMPANIES FILED A LAWSUIT AGAINST OFFICERS AND DIRECTORS OF PHARMOR INC ACCOUNTANTS COOPERS & LYBRAND AND THE GIANT EAGLE SUPERMARKET CHAIN ALLEGING THEY MISLED THE INSURERS INTO INVESTING 155 MILLION IN PHARMOR PHARMOR A DEEPDISCOUNT DRUGSTORE CHAIN BASED IN YOUNGSTOWN OHIO LAST SUMMER DISCLOSED IT WAS THE VICTIM OF A HUGE FRAUD AND EMBEZZLEMENT SCHEME BY FORMER EXECUTIVES FOLLOWING THE DISCLOSURE PHARMOR FILED FOR PROTECTION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE SINCE THEN IT HAS SLASHED JOBS AND STORES BY HALF AS PART OF A REORGANIZATION PLAN THE COMPANY HAS NOW DETERMINED THAT THE SCOPE OF THE FRAUD WAS 499 MILLION THE INSURANCE COMPANIES FILING THE SUIT WHICH INCLUDE EQUITABLE LIFE ASSURANCE SOCIETY OF THE US A UNIT OF EQUITABLE COS JOHN HANCOCK MUTUAL LIFE INSURANCE CO NEW YORK LIFE INSURANCE CO AND TEACHERS INSURANCE & ANNUITY ASSOCIATION OF AMERICA ARE DEMANDING UNSPECIFIED DAMAGES IN THE SUIT FILED IN FEDERAL COURT HERE AMONG THOSE NAMED IN THE SUIT ARE PHARMOR DIRECTOR JONATHAN H KAGAN WHO IS ALSO MANAGING DIRECTOR OF CORPORATE PARTNERS LP AN INVESTMENT FUND AFFILIATED WITH LAZARD FRERES & CO CORPORATE PARTNERS INVESTED 200 MILLION IN PHARMOR IN 1991 FOR A 21 STAKE IN THE CHAIN A SPOKESWOMAN FOR MR KAGAN SAID HE HAD NO COMMENT ON THE SUIT ALSO NAMED IS DAVID S SHAPIRA CHAIRMAN AND COFOUNDER OF PHARMOR AND CHIEF EXECUTIVE OFFICER OF PITTSBURGHBASED GIANT EAGLE INC WHICH OWNS 383 OF PHARMOR COMMENT FOR SHAPIRA ROBERT ALLMAN AN ATTORNEY FOR GIANT EAGLE SAID NEITHER THE SUPERMARKET CHAIN NOR MR SHAPIRA KNEW OF OR PARTICIPATED IN THE FRAUD AND EMBEZZLEMENT SCHEME DAVID DID NOT KNOW ABOUT THE FRAUD AND EVEN THE ASSISTANT US ATTORNEY IN CLEVELAND CAME OUT AND SAID DAVID DID NOT KNOW MR ALLMAN SAID TWO FORMER PHARMOR EXECUTIVES ALSO NAMED IN THE SUIT HAVE PLEADED GUILTY TO FEDERAL CHARGES THAT THEY PARTICIPATED IN THE 499 MILLION FRAUD A THIRD IS AWAITING TRIAL ON A 129COUNT FEDERAL INDICTMENT THE INSURERS WHICH SUBSCRIBED TO A 1991 PHARMOR PRIVATE OFFERING OF 155 MILLION IN NOTES ALLEGE AMONG OTHER THINGS THAT COOPERS & LYBRAND MISREPRESENTED PHARMOR'S FINANCIAL HEALTH IN ANNUAL AUDITS AND A SPECIAL 1991 REPORT AND THAT FORMER AND CURRENT PHARMOR OFFICERS AND DIRECTORS CONSPIRED TO MISREPRESENT THE COMPANY'S FINANCES THE FINANCIAL STATEMENTS DID NOT DISCLOSE THAT PHARMOR'S APPARENT HEALTHY FINANCIAL CONDITION HAD BEEN FABRICATED THROUGH A SCHEME OF UNDERSTATING EXPENSES OVERSTATING RECEIVABLES AND INFLATING INVENTORY THE LAWSUIT SAYS RICHARD J STONE AN ATTORNEY WITH MILBANK TWEED HADLEY & MCCLOY A LAW FIRM THAT IS REPRESENTING THE INSURERS SAID THE ALLEGED FRAUD DATED BACK AT LEAST TO 1988 MR STONE SAID THE INSURANCE COMPANIES RELIED ON DATA FURNISHED BY COOPERS & LYBRAND WHICH CREATED A PRESUMPTION OF LEGITIMACY THAT WAS AN INCENTIVE TO INVEST IN PHARMOR COOPERS & LYBRAND RESPONDS COOPERS & LYBRAND A NEW YORKBASED BIG SIX ACCOUNTING FIRM LASHED OUT AGAINST THE LAWSUIT WHICH NAMED SEVERAL ACCOUNTING PARTNERS AS PART OF A DEFENDANT CLASS INCLUDING COOPERS & LYBRAND CHAIRMAN EUGENE M FREEDMAN AND GREGORY S FINERTY A PITTSBURGH PARTNER WHO WAS IN CHARGE OF THE PHARMOR ACCOUNT COOPERS & LYBRAND QUESTIONED WHETHER THE BIG INSURERS HAD ACTUALLY RELIED ON ITS AUDITS SAID THE AUDITS CONFORMED TO GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND DESCRIBED ITSELF AS THE VICTIM OF MASSIVE COLLUSIVE FRAUD ON THE PART OF PHARMOR'S FORMER MANAGEMENT SAID A COOPERS & LYBRAND SPOKESMAN SOPHISTICATED INVESTORS DO NOT INVEST THAT AMOUNT OF MONEY WITHOUT CONDUCTING SIGNIFICANT DUE DILIGENCE AND OBTAINING A GREAT DEAL OF OTHER INFORMATION AND COMFORT THE LAWSUIT ONE OF SEVERAL THAT HAVE BEEN FILED SINCE PHARMOR DISCLOSED THE HUGE FRAUD LAST SUMMER PROVIDES DETAILS ABOUT HOW EXPENSES MAY HAVE BEEN UNDERSTATED RECEIVABLES OVERSTATED AND INVENTORY INFLATED THE LAWSUIT SAYS PHARMOR EXECUTIVES KEPT TWO SETS OF BOOKS ONE ACCURATE THE OTHER FRAUDULENT AND ALLEGES THAT IN 1991 MR SHAPIRA RECEIVED A REPORT FROM LOWERLEVEL EXECUTIVES THAT DISCLOSED THIS PRACTICE BY COMPARING ACTUAL FINANCIAL RESULTS WITH BOOKED RESULTS DESPITE HAVING KNOWLEDGE THAT PHARMOR WAS FALSELY REPORTING ITS INVENTORY COUNTS AND GROSS PROFIT MARGINS SHAPIRA DID NOT DISCLOSE THIS KNOWLEDGE TO PLAINTIFFS NOR DID SHAPIRA EXERCISE HIS INFLUENCE TO PUT A STOP TO THE ACCOUNTING FRAUD THE LAWSUIT SAYS 9304260010 930426 CITICORP FLUB MOCKS ITS NEVER SLEEPS' SERVICE CAMPAIGN BANK SAYS IT OVERSTATED RETURNS ON 1 BILLION IN 401K FUND FOR EMPLOYEE RETIREMENT BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CITICORP'S AD CAMPAIGN SAYS IT'S THE BANK THAT NEVER SLEEPS BUT DON'T TELL THAT TO 32000 CITIBANKERS JUST AS THE TROOPS AT THE NATION'S LARGEST BANK WERE BEGINNING TO FEEL BETTER ABOUT THEIR JOB AND THE COMPANY'S PROSPECTS CITICORP HAS SHEEPISHLY TOLD EMPLOYEES IT HAS BEEN OVERSTATING THE RETURNS IN THEIR RETIREMENT FUNDS IT'S A BIT EMBARRASSING FOR THE BANK GIVEN THAT CITICORP HAS BEEN AGGRESSIVELY PUSHING ITS EXPERTISE IN MANAGING AND SELLING MUTUAL FUNDS AND RETIREMENT ACCOUNTS LAST THURSDAY CITICORP CHAIRMAN JOHN S REED WROTE TO EMPLOYEES THAT SINCE 1985 THE COMPANY HAD MISCALCULATED THE RETURNS ON 1 BILLION IN EMPLOYEE RETIREMENT FOR MORE THAN ONETHIRD OF ITS EMPLOYEES THAT MEANS EMPLOYEES HAVE ON AVERAGE 6 LESS IN THEIR 401K THAN THEY THOUGHT THEY HAD IT'S EXTREMELY EMBARRASSING TO THE POINT OF BEING PAINFUL CHAIRMAN REED TOLD EMPLOYEES IT IS INEXCUSABLE AND SHOULD HAVE BEEN CAUGHT SOONER THE MISTAKE OCCURRED IN THE ORIGINAL FORMULA FOR COMPUTING HOW ASSETS WERE ALLOCATED TO INDIVIDUAL FUNDS IN WHICH IT WAS INVESTING IT WAS FOUND AFTER AN AUDIT OF THE FUNDS WHICH ARE MANAGED BY A THIRD PARTY BUT ADMINISTERED BY THE BANK EMBEDDED IN THE ORIGINAL CALCULATION WAS A PLAIN MISTAKE A SPOKESMAN FOR THE BANK SAID THE COMPANY NOW HAS AN ARMY OF EMPLOYEES TRYING TO RECREATE THE CORRECT ACCOUNTS FOR AROUND 32000 EMPLOYEES NONE OF WHOM HAD ANY IDEA THEIR FUNDS HAD BEEN ARTIFICIALLY INFLATED BY JUNE 30TH THE COMPANY HOPES TO BE ABLE TO TELL EMPLOYEES THE VALUE OF THE FUND AS OF MARCH 31 THE COSTS OF DOING THIS WERE REFLECTED IN THE FIRST QUARTER RESULTS CITICORP OFFICIALS SAY CUSTOMERS HAVE NOT BEEN AFFECTED BECAUSE THE FUNDS ARE COMPLETELY SEGREGATED FROM CUSTOMER ACCOUNTS THERE'S NO REASON CUSTOMERS HAVE TO WORRY A SPOKESMAN FOR THE BANK SAID STILL IT'S AN EMBARRASSMENT FOR THE BANK AND ITS MANAGEMENT OFFICIALS ADMIT IT'S EXTREMELY DISTRESSING SAYS THE SPOKESMAN FOR THE BANK THERE'S A SILVER LINING THOUGH FOR EMPLOYEES WHO HAVE RETIRED THEY GOT TO TAKE THE EXTRA MONEY AND RUN THE BANK IS GRACIOUS ENOUGH TO MAKE GOOD ON THE OVERINFLATED FIGURES WE'RE NOT GOING TO GO AFTER THEM THE SPOKESMAN SAID 9304260009 930426 BUSINESS BRIEF CONTINENTAL AIRLINES POSTS 1STPERIOD LOSS OF 1095 MILLION HOUSTON CONTINENTAL AIRLINES HOLDINGS INC WHICH EXPECTS TO EMERGE FROM CHAPTER 11 BANKRUPCTYLAW PROCEEDINGS BY THE END OF APRIL REPORTED A FIRSTQUARTER LOSS OF 1095 MILLION THE LOSS WHICH WAS IN LINE WITH MOST ANALYSTS' EXPECTATIONS EQUALED 236 A SHARE IN THE YEAREARLIER QUARTER CONTINENTAL HAD NET INCOME OF 174 MILLION OR 36 CENTS A SHARE THE MOST RECENT QUARTER INCLUDED ONETIME CHARGES OF ABOUT 118 MILLION RELATED TO CONTINENTAL'S BANKRUPCTY COURT PROCEEDINGS THE YEARAGO QUARTER INCLUDED ONETIME GAINS TOTALING ABOUT 489 MILLION LARGELY FROM THE SALE OF GATES AND OTHER AIRPORT FACILITIES REVENUE WAS FLAT AT 141 BILLION THE HOLDING COMPANY FOR CONTINENTAL AIRLINES THE NATION'S FIFTHLARGEST CARRIER BLAMED THE LOSS ON THE WEAK ECONOMY AND THE OVERALL STATE OF THE AIRLINE INDUSTRY WHERE PROFITS HAVE ERODED UNDER CONTINUING FARE CUTS AMONG COMPETITORS EARLIER THIS MONTH CONTINENTAL WHICH HAS BEEN OPERATING UNDER CHAPTER 11 PROTECTION SINCE 1990 SAID IT EXPECTS ITS CONTINENTAL AIRLINES UNIT TO HAVE 5892 MILLION IN CASH AT THE END OF THIS YEAR A NUMBER THAT WILL DWINDLE TO 378 MILLION BY YEAREND 1996 THAT IS IN PART BECAUSE CONTINENTAL EXPECTS TO BEGIN PAYING FOR AN AIRCRAFT ACQUISITION THAT IS STILL BEING NEGOTIATED CONTINENTAL SAID IT EXPECTS ITS BANKRUPTCY COURT REORGANIZATION PLAN TO BE CONFIRMED BY THE END OF APRIL THE MAIN HURDLE FOR CONTINENTAL TO EMERGE FROM BANKRUPCTY APPARENTLY IS TO CLOSE THE PROPOSED TRANSACTION IN WHICH IT PLANS TO SELL A 55 STAKE TO AIR CANADA AND AIR PARTNERS LP A FORT WORTH TEXAS INVESTOR GROUP FOR 450 MILLION 9304260008 930426 MARKETING & MEDIA CAROLCO INTENDS TO AIR FOUR MOVIES ON CABLE BEFORE THEATER STINT LOS ANGELES TELECOMMUNICATIONS INC AND CAROLCO PICTURES INC SAID THEY SIGNED A LETTER OF INTENT FOR TELECOMMUNICATIONS THE NATION'S LARGEST CABLE OPERATOR TO INVEST UP TO 90 MILLION IN UP TO FOUR CAROLCO FILM PRODUCTIONS OVER THE NEXT FOUR YEARS THE AGREEMENT WHICH HAD BEEN EXPECTED CALLS FOR THESE FOUR MAJOR EVENT MOTION PICTURES TO BE SHOWN ON CABLE TELEVISION ON A PAYPERVIEW BASIS UP TO THREE TIMES INCLUDING AN AFTERNOON SHOWING ON THE WEEKEND IMMEDIATELY BEFORE THEY OPEN IN THEATERS CAROLCO WHICH HAS SUFFERED THROUGH CASH SHORTAGES IN RECENT YEARS IS THE PRODUCER OF SUCH FILMS AS BASIC INSTINCT TOTAL RECALL AND THE TERMINATOR AND RAMBO MOVIES DENVERBASED TELECOMMUNICATIONS WILL RECEIVE UP TO 50 MILLION IN CAROLCO COMMON STOCK WHILE THE REST OF THE INVESTMENT WILL BE IN THE FORM OF RIGHTS PAYMENTS CAROLCO BASED IN LOS ANGELES ALREADY HAS THREE OVERSEAS STRATEGIC PARTNERS WHO HOLD EQUITY AND HAVE CERTAIN DISTRIBUTION RIGHTS A FOURTH METROGOLDWYNMAYER PICTURES INC HAS AGREED TO INVEST ABOUT 60 MILLION AND WILL BEGIN TO DISTRIBUTE CAROLCO'S FILMS IN THEATERS NEXT YEAR PENDING APPROVAL OF THE DEAL CAROLCO INTENDS TO PRODUCE ABOUT FIVE MOVIES A YEAR THE FOUR TELECOMMUNICATIONS FILMS ARE NOT PART OF THE MGM AGREEMENT AND MGM A UNIT OF PATHE COMMUNICATIONS CORP OF BEVERLY HILLS CALIF IS SAID TO BE EAGER TO REASSURE THEATER OWNERS OF THIS FACT THEATER OWNERS ARE ANGRY ABOUT THE PROSPECTS OF EARLY PAYPERVIEW SHOWINGS AND MOVIE STUDIOS WILL BE WATCHING TELECOMMUNICATIONS' FIRST ENTRIES INTO THE BUSINESS WITH GREAT INTEREST INDUSTRY ANALYSTS SAY 9304260007 930426 UNIGESCO PLANS TO SELL ITS STAKE IN UNIVA INC TO INVESTMENT FIRM MONTREAL UNIVA INC'S PRINCIPAL SHAREHOLDER UNIGESCO INC AGREED TO SELL ITS 26 STAKE IN THE SUPERMARKET COMPANY TO AN UNIDENTIFIED US INVESTMENT FIRM FOR 885 CANADIAN DOLLARS US701 A SHARE OR UP TO C1979 MILLION UNIGESCO HAS BEEN SCRAMBLING TO RAISE CASH SINCE BLACKSTONE GROUP LP LAST MONTH CANCELED A PROPOSED BUYOUT OF UNIVA THE COLLAPSE OF THE PLAN UNDER WHICH UNIGESCO WOULD HAVE KEPT PART OF ITS STAKE IN UNIVA FOLLOWED STIFF OPPOSITION FROM THE CAISSE DE DEPOT ET PLACEMENT DU QUEBEC THE PROVINCIAL PENSION FUND AGENCY THAT HAS LONG BEEN A MAJOR SHAREHOLDER IN UNIVA AND WIELDS ENORMOUS CLOUT IN QUEBEC THE CAISSE HAD OBJECTED TO TERMS OF THE C11ASHARE BUYOUT PROPOSAL AND ARGUED THAT IT WOULD SADDLE UNIVA WITH A DANGEROUSLY HEAVY DEBT BURDEN UNIGESCO'S LATEST PLAN WOULD INVOLVE ONLY THE SALE OF UNIGESCO'S HOLDINGS IN UNIVA UP TO 224 MILLION SHARES IT IS SUBJECT TO AGREEMENT BY UNIVA'S OTHER MAJOR SHAREHOLDERS THERE WERE EARLY SIGNS THAT DESPITE THE LOWER PRICE THE NEW PROPOSAL MIGHT HAVE SMOOTHER SAILING THE CAISSE IN A BRIEF STATEMENT SAID IT NOTES THAT THIS TYPE OF TRANSACTION ENABLES UNIGESCO TO SELL ITS SHARES WITHOUT COMPROMISING UNIVA'S FINANCIAL POSITION UNIGESCO A MONTREAL HOLDING COMPANY WITH INTERESTS IN THE HARDWARE BUSINESS MUST RAISE CASH TO MEET C62 MILLION IN DEBT OBLIGATIONS COMING DUE IN JUNE UNIGESCO'S CHAIRMAN AND CHIEF EXECUTIVE BERTIN NADEAU ALSO IS CHAIRMAN AND CHIEF EXECUTIVE OF UNIVA IN THE YEAR ENDED JAN 30 UNIVA HAD NET INCOME OF C325 MILLION OR 30 CANADIAN CENTS A SHARE ON SALES OF C67 BILLION 9304260006 930426 MARKETING & MEDIA TIME INC'S PEOPLE IS PLANNING TO TEST CELEBRITY MAGAZINE BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TIME WARNER INC'S PEOPLE MAGAZINE WILL TEST A NEW CELEBRITY MAGAZINE BEGINNING IN AUGUST EXPECTED TO HAVE THE WORKING TITLE OF STAR TRACKS THE MAGAZINE WILL BE HEAVY ON PHOTOGRAPHS AND WILL CARRY FEATURES ON CELEBRITY LIFESTYLES WEDDINGS PARTIES CHARITY EVENTS FASHION AND FOOD ACCORDING TO A COMPANY RELEASE PEOPLE IS PUBLISHED BY TIME INC TIME WARNER'S MAGAZINE PUBLISHING UNIT THE TEST MAGAZINE RESEMBLES IN SOME WAYS AN EXPENSIVE ILLFATED MAGAZINE THAT WAS TESTED UNDER THE NAME PICTURE WEEK A BLACKANDWHITE NEWS AND PHOTO MAGAZINE PICTURE WEEK NEVER MADE IT TO A NATIONAL LAUNCH AND WAS ABANDONED IN 1986 AFTER TIME INC SPENT MILLIONS ON EXHAUSTIVE TEST MARKETING PEOPLE MAGAZINE PUBLISHER ANN MOORE SAID THE MAGAZINE WAS CREATED IN RESPONSE TO A GROWING INTEREST IN LARGE FORMAT FOURCOLOR CELEBRITY COVERAGE AMONG SOME OF PEOPLE MAGAZINE'S READERS THE BELIEVED TITLE WHICH THE COMPANY WOULDN'T CONFIRM IS THE NAME OF THE PEOPLE EDITORIAL SECTION THAT FEATURES PHOTOS OF CELEBRITIES OUT ON THE TOWN MS MOORE SAID THE PUBLICATION OF THE MAGAZINE FITS WITH PEOPLE'S LONGTERM GOAL TO EXPAND OUR FRANCHISE IN MARCH 1992 PEOPLE LAUNCHED A SPINOFF IN AUSTRALIA UNDER THE NAME WHO WEEKLY WHICH TIME INC CLAIMS HAS SINCE BECOME ONE OF THE BESTSELLING MAGAZINES IN THAT COUNTRY PEOPLE WILL PUBLISH SEVERAL TEST ISSUES THE FIRST OF WHICH WILL APPEAR ON NEWSSTANDS IN AUGUST THE TEST ISSUES WILL BE PREPARED BY AN EDITORIAL TEAM WORKING UNDER PEOPLE MANAGING EDITOR LANDON Y JONES THE COMPANY SAID IT HAS NOT DECIDED ON A COVER PRICE 9304260005 930426 VW CONFIRMS IT HELD TALKS ON POSSIBILITIES OF WORK IN VIETNAM SPECIAL TO THE WALL STREET JOURNAL WOLFSBURG GERMANY GERMANY'S LARGEST AUTO MAKER VOLKSWAGEN AG CONFIRMED THAT IT HAS HELD TALKS WITH TRAN LUM VIETNAM'S MINISTER FOR MANUFACTURING ON INVESTMENT POSSIBILITIES IN VIETNAM BUT ALSO PLAYED DOWN THE SIGNIFICANCE OF THE TALKS BY THE END OF THE YEAR VW AND VIETNAM SHOULD HAVE A CONCRETE AGENDA SO NEGOTIATIONS ON BUILDING A VW AUTO FACTORY IN VIETNAM CAN PROCEED MR LUM SAID AT THE HANNOVER TRADE FAIR HOWEVER A VW SPOKESMAN CHARACTERIZED THE TALKS AS LESS SPECIFIC THAN THAT AND SAID THEY WERE THE RESULT OF USUAL BUSINESS PRACTICES WITH A WORLD PLAYER LIKE VW IT IS NORMAL BUSINESS TO TALK TO AND BE IN CONTACT WITH EVERYBODY SAID HANS PETER BELCHINGER A VW SPOKESMAN WHEN A MINISTER FROM THE ASIANPACIFIC REGION IS IN THE AREA WE ALWAYS TALK WITH HIM IN WOLFSBURG AT THIS MOMENT IT IS VERY MUCH TOO EARLY TO SAY ANYTHING ABOUT THE CHANCES OF ANYTHING COMING FROM THESE TALKS SAID MR BLECHINGER NEVERTHELESS VW MAINTAINS A SHARP INTEREST IN THE FAR EAST THE AUTO MAKER PLANS TO INVEST MORE THAN TWO BILLION MARKS 125 BILLION BY THE YEAR 2000 TO INCREASE PRODUCTION IN ITS JOINT VENTURES IN CHINA AND TAIWAN MR BLECHINGER SAID THE ASIANPACIFIC REGION IS THE MOST IMPORTANT GROWTH AREA FOR US OVER THE NEXT 10 YEARS HE SAID BY THE END OF THE DECADE VW HOPES TO PRODUCE ANNUALLY 150000 SANTANA CARS IN ITS JOINT VENTURE IN SHANGHAI AND 150000 JETTA CARS IN ITS CHANGCHUN JOINT VENTURE VW HOLDS A 50 STAKE IN THE SHANGHAI WORKS AND A 40 STAKE IN THE CHANGCHUN WORKS IN ADDITION VW WANTS TO BE PRODUCING 30000 T4 TRANSPORTERS IN TAIPEI CURRENTLY THE T4 IS BUILT IN HANNOVER 9304260003 930426 ROBERT MONDAVI WINERY PLANS AN IPO MOVE IS CLOSELY WATCHED BY INDUSTRY BY CARRIE DOLAN STAFF REPORTER OF THE WALL STREET JOURNAL NAPA VALLEY CALIF ROBERT MONDAVI WINERY ONE OF THE NATION'S LARGEST AND BESTKNOWN WINERIES SAID IT PLANS AN INITIAL PUBLIC OFFERING OF STOCK IF THE OFFERING IS SUCCESSFUL ANALYSTS EXPECT OTHER WINERIES MAY FOLLOW SUIT ROBERT MONDAVI WINERY SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED INITIAL PUBLIC OFFERING OF 37 MILLION SHARES OF CLASS A COMMON STOCK THE OFFERING PRICE IS EXPECTED TO BE 13 TO 16 A SHARE MAKING THE VALUE OF THE OFFERING 48 MILLION TO 59 MILLION OF THE 37 MILLION SHARES BEING OFFERED 27 MILLION ARE BEING OFFERED BY THE COMPANY AND ONE MILLION WILL BE SOLD BY ROBERT MONDAVI AND HIS FAMILY FOLLOWING THE OFFERING FAMILY MEMBERS WILL CONTINUE TO HOLD A MAJORITY OF THE COMMON STOCK OUTSTANDING AND VOTING POWER OF THE COMPANY PROCEEDS FROM THE COMPANY'S SALE WILL BE USED TO REPAY BANK BORROWINGS AND FOR GENERAL CORPORATE PURPOSES GOLDMAN SACHS & CO AND HAMBRECHT & QUIST INC ARE COMANAGING UNDERWRITERS OF THE OFFERING IF THERE WAS EVER A TIME TO FLOAT A STOCK ISSUE THIS IS IT SAYS JON FREDRIKSON A WINE INDUSTRY ANALYST IN SAN FRANCISCO THOUGH WINERIES TYPICALLY HAVE ONLY ABOUT A 5 RETURN ON ASSETS HE SAYS LOW INTEREST RATES A STRONG STOCK MARKET AND THE RECENT HEALTH OF THE WINE BUSINESS HAVE CAUSED WINE MAKERS TO CONSIDER GOING PUBLIC LAST YEAR TABLE WINE SHIPMENTS GREW ABOUT 10 TO 32 BILLION THE BIGGEST INCREASE IN A DECADE HE SAYS PREMIUM WINES GREW BY 16 TO 16 BILLION COMMERCIAL BANKS HAVE BECOME INCREASINGLY RELUCTANT TO LEND TO WINERIES IN RECENT YEARS BECAUSE THE BUSINESSES ARE SO CAPITALINTENSIVE MAKING PUBLIC OFFERINGS LOOK MORE ATTRACTIVE TO WINERIES CURRENTLY THERE ARE TWO PUBLICLY TRADED WINERIES CHALONE WINE GROUP INC OF SAN FRANCISCO AND NEW YORKBASED CANANDAIGUA WINE CO BOTH OF THOSE CONCERNS HAVE SEEN THEIR STOCK FALL DURING THE PAST YEAR IN OVERTHECOUNTER TRADING CHALONE WAS QUOTED AT 7 FRIDAY COMPARED WITH A HIGH OF 950 LAST APRIL CANANDAIGUA WAS QUOTED FRIDAY AT 14125 COMPARED WITH A HIGH OF 2550 IN MAY 1992 SUCH LACKLUSTER PERFORMANCE PROBABLY WON'T DIMINISH THE APPEAL OF WINE COMPANY STOCKS SAYS LEWIS PERDUE PUBLISHER OF THE NEWSLETTER WINE BUSINESS INSIDER WINE STOCKS APPEAL TO THE HOBBY STOCK HOLDER WHO WANTS TO BE PART OF THIS INDUSTRY HE SAYS CAPITAL GAINS AND DIVIDENDS ARE THE FURTHEST THINGS FROM THEIR MINDS HE EXPECTS THE MONDAVI OFFERING TO BE SUCCESSFUL AND SAYS FOUR OTHER NORTHERN CALIFORNIA MAKERS OF PREMIUM WINES SUTTER HOME KENDALLJACKSON SEBASTIANI AND GLEN ELLEN ARE LIKELY CANDIDATES THAT MAY GO PUBLIC FOR THE YEAR ENDED JUNE 30 1992 ROBERT MONDAVI WINERY POSTED NET INCOME OF 71 MILLION OR 69 CENTS A SHARE COMPARED WITH YEAREARLIER NET OF 43 MILLION OR 39 CENTS A SHARE REVENUE WAS 154 MILLION UP 23 FROM 125 MILLION THE PREVIOUS YEAR MONDAVI'S WINES ARE PRIMARILY IN THE PREMIUM WINE SEGMENT WHICH HAS BEEN THE FASTESTGROWING PORTION OF THE INDUSTRY LAST YEAR MONDAVI WAS THE EIGHTHLARGEST US WINEMAKER ACCORDING TO MR FREDRIKSON DURING THE PAST SEVERAL YEARS MR MONDAVI HAS MAINTAINED A HIGH PROFILE AS ONE OF THE LEADERS OF AN INDUSTRY EFFORT TO DISTINGUISH MODERATE WINE DRINKING FROM ALCOHOL ABUSE GOVERNMENT AUTHORITIES ORDERED ROBERT MONDAVI WINERY TO CHANGE ONE LABEL THAT SAID WINE WAS RECOMMENDED IN THE BIBLE CUTTING THE BIBLICAL REFERENCE AND CHANGING A SENTENCE THAT READ WINE IN MODERATION IS AN INTEGRAL PART OF OUR CULTURE TO READ WINE IN MODERATION IS AN INTEGRAL PART OF OUR FAMILY'S CULTURE 9304260002 930422 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 9304260001 930426 ABREAST OF THE MARKET HAS THE STOCK MARKET FINALLY COOLED ITS ROMANCE WITH PRESIDENT CLINTON BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRESIDENT CLINTON'S HONEYMOON WITH THE STOCK MARKET IS OVER TRADITIONALLY NEW PRESIDENTS ARE GIVEN 100 DAYS AFTER THEIR INAUGURATION IN WHICH TO STAKE OUT NEW POLICY DIRECTIONS UNLESS A PRESIDENT STUMBLES BADLY THE FIRST 100 DAYS IN OFFICE IS USUALLY A BREEZE IN THE PAST FEW WEEKS HOWEVER MR CLINTON'S BREEZY DEBUT HAS TURNED A LITTLE BLUSTERY THE STANDARD & POOR'S 500STOCK INDEX RALLIED MORE THAN 92 TO A RECORD AFTER INVESTORS BECAME RECONCILED TO A CLINTON VICTORY IN EARLY OCTOBER BUT LATELY THE S&P 500 HAS RETREATED FALLING 243 POINTS FRIDAY TO 43703 THE LOWEST LEVEL SINCE FEB 23 THE BOND MARKET'S LOVE AFFAIR WITH THE PRESIDENT IS STILL AFLAME BUT MANY STRATEGISTS EXPECT IT TO COOL SOON SO FROM INVESTORS' PERSPECTIVE THE PRESIDENT'S NEXT 100 DAYS SHAPE UP TO BE FAR MORE TRYING THAN THE FIRST I'VE NEVER THOUGHT THE STOCK MARKET WAS ENTHUSIASTIC ABOUT CLINTON SAYS THOMAS GALLAGHER A POLITICAL ANALYST AT SHEARSON LEHMAN BROTHERS IN WASHINGTON MOST INVESTORS INSTITUTIONAL AND INDIVIDUAL DON'T LIKE HIS PROGRAMS BUT WHAT'S ASTOUNDING IS THAT IT HASN'T AFFECTED THE MARKETS YET TO BE SURE MANY OF MR CLINTON'S POLICIES SUCH AS HIGHER CORPORATE AND INDIVIDUAL TAXES WILL WIND UP HURTING THE STOCK MARKET BY SLOWING ECONOMIC GROWTH AND WHITTLING CORPORATE PROFITS BUT SOMEHOW STOCK INVESTORS HAVEN'T BEEN WILLING TO SELL THE PRESIDENT SHORT YET THE MAIN REASON IS INTEREST RATES SINCE MR CLINTON TOOK OFFICE ON JAN 20 THERE REALLY HAS BEEN AN UNINTERRUPTED STREAM OF GOOD NEWS THAT HAS DRIVEN LONGTERM INTEREST RATES MORE THAN HALF A PERCENTAGE POINT LOWER TO 679 AND HELPED PROP UP STOCK PRICES SAYS MR GALLAGHER UNTIL RECENTLY BUDGET POLITICS WAS A POSITIVE FACTOR FOR THE BOND MARKET AND THUS FOR STOCKS SAYS MR GALLAGHER BUT THAT WILL END NOW OVER THE NEXT FEW MONTHS MR GALLAGHER EXPECTS SKIRMISHES ABOUT THE BUDGET TO BE A SOURCE OF VOLATILITY FOR THE STOCK AND BOND MARKETS AS MR CLINTON'S VICTORIES ARE INCREASINGLY DOTTED WITH SETBACKS A HINT OF THAT CAME LAST WEEK AS SENATE REPUBLICANS KILLED THE PRESIDENT'S ECONOMIC STIMULUS PROGRAM HANDING HIM HIS FIRST SERIOUS LEGISLATIVE DEFEAT INSTEAD OF CHEERING OVER THE DROP IN SPENDING THAT WILL RESULT FROM THE DEFEAT OF THE STIMULUS BILL STOCK INVESTORS BOOED FRETTING THAT IF CLINTON IS HAVING A MORE DIFFICULT TIME GETTING ALONG WITH CONGRESS THEN THAT COULD MEAN THE BUDGET DEFICITREDUCTION PACKAGE IS IN TROUBLE SAYS MR GALLAGHER OVER THE COURSE OF THE WEEK I HAVE GOTTEN A LOT OF CALLS FROM CLIENTS ASKING IF GRIDLOCK IS BACK BUT UNLIKE INVESTORS MR GALLAGHER IS ACTUALLY QUITE OPTIMISTIC ABOUT THE FUTURE OF THE PRESIDENT'S DEFICITCUTTING PACKAGE HE SAYS THAT ALTHOUGH MR CLINTON'S APPROVAL RATING IS AT THE LOWEST LEVEL FOR ANY NEWLY ELECTED PRESIDENT IT DOESN'T MEAN THAT HE OR HIS POLICIES ARE DOOMED REMEMBER MR GALLAGHER SAYS THE SECOND MOST UNPOPULAR NEWLY ELECTED PRESIDENT WAS RONALD REAGAN WHO SUCCEEDED IN GETTING HIS AGENDA PASSED AND TURNED OUT TO BE A WINNER ON WALL STREET AS WELL WHILE BUDGET POLITICS COULD BE A SOURCE OF IRRITATION FOR THE MARKETS IN THE MONTHS AHEAD A SHARPER THORN WILL BE THE CLINTON ADMINISTRATION'S MUCHBALLYHOOED HEALTHCARE OVERHAUL PACKAGE CLINTON IS LIKELY TO RUN INTO SOME REAL PROBLEMS WITH THE HEALTH CARE PACKAGE SAYS GAIL DUDACK STOCK MARKET STRATEGIST AT SG WARBURG DURING THE CAMPAIGN MS DUDACK SAYS MR CLINTON RAN ON TWO PROMISES REDUCING THE DEFICIT AND SPURRING JOB GROWTH THE HEALTH CARE OVERHAUL PLAN SHE SAYS RUNS COUNTER TO BOTH THESE GOALS AS SOON AS THE PLAN IS UNVEILED MS DUDACK EXPECTS THE STOCK AND BOND MARKETS TO TUMBLE IN AN EMOTIONAL SELLOFF AND THOUGH THE MARKETS MAY REMAIN IN LIMBO FOR A WHILE SHE EXPECTS A POWERFUL BUYING SPREE TO SWEEP THE STOCK MARKET ONCE IT BECOMES APPARENT THAT THE HEALTHCARE PLAN THAT IS ENACTED IS LIKELY TO BE FAR MORE MODERATE THAN THE ONE MR CLINTON PROPOSED IT SEEMS TO ME WE ARE HEADED FOR ANOTHER YEAR WHERE WE ARE CONFINED TO A TRADING RANGE IN THE SECOND HALF SAYS MS DUDACK BUT WHILE 10 TOTAL RETURN ON STOCKS SOUNDS EXTREMELY DULL TO US IN REAL TERMS IT'S EXCELLENT ONE OF THE REASONS INVESTORS ARE PARTICULARLY SKITTISH NOW IS THAT THEY PERCEIVE THE RISKS FROM MR CLINTON'S ACTIONS TO BE MUCH GREATER THAN THE REWARDS SINCE MR CLINTON ASSUMED OFFICE HE HAS VERBALLY ABUSED MAJOR INDUSTRIES SENDING PHARMACEUTICAL AND TOBACCO STOCKS REELING WHILE THE CONCEPT OF PROACTIVE GOVERNMENT MAY HAVE SOUNDED ATTRACTIVE SIX MONTHS AGO WHEN PRESIDENT BUSH WAS IN THE WHITE HOUSE AND VOTERS WERE TURNED OFF BY HIM WE ARE NOW GETTING EXPOSED TO WHAT PROACTIVE GOVERNMENT IMPLIES SAYS STEVEN RESNICK SENIOR INVESTMENT STRATEGIST AT COWEN & CO SOON AFTER THE PRESIDENT'S FEBRUARY ADDRESS ON THE ECONOMY COWEN ADVISED ITS CLIENTS TO TAKE A LESS AGGRESSIVE APPROACH TO STOCKS NINETY PERCENT OF THE GOOD NEWS RELATING TO PRESIDENT CLINTON WAS DISCOUNTED BY THE TIME OF THE SPEECH ON THE ECONOMY MR RESNICK ASSERTS THOUGH MR RESNICK EXPECTS SOME RELATIVELY MODEST GAINS IN STOCK PRICES IN THE COMING MONTHS HE WARNS THAT INVESTORS ARE NOW IN THE ANXIETY STAGE IF MR CLINTON SAYS THE WRONG THING ON A GIVEN DAY YOU COULD GET MORE SELLING HE SAYS ONE STRATEGIST WHO REMAINS UNUSUALLY OPTIMISTIC IS FRAZIER EVANS SENIOR ECONOMIST FOR COLONIAL INVESTMENT SERVICES MR EVANS BELIEVES THAT CLINTON'S WHOLE RAISON D'ETRE IS TO BE REELECTED TO WIN THE PRESIDENCY IN 1996 MR CLINTON WILL HAVE TO SUCCEED IN LURING THE VOTERS WHO SUPPORTED ROSS PEROT LAST YEAR AND ROSS IS NOT GOING TO GIVE THEM TO HIM UNTIL THE BUDGET DEFICIT IS LOWER AND INTEREST RATES ARE DOWN RISING INTEREST RATES AND JITTERS ABOUT POSSIBLE US INTERVENTION IN BOSNIA DROVE STOCK PRICES BROADLY LOWER THE DOW JONES INDUSTRIAL AVERAGE FELL 1540 POINTS TO 341377 IN HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX SLID 243 TO 43703 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX LOST 123 TO 24185 ON THE BIG BOARD 1183 ISSUES DECLINED AND 746 ADVANCED VOLUME TOTALED 257031790 SHARES DOWN FROM THURSDAY'S 302848150 SHARES FOR THE WEEK THE INDUSTRIAL AVERAGE FELL 19 THE S&P 500 DROPPED 265 AND THE BIG BOARD'S COMPOSITE INDEX LOST 244 MARVEL ENTERTAINMENT JUMPED 2 5/8 TO 27 5/8 MACANDREWS & FORBES HOLDINGS INCREASED ITS TENDER OFFER FOR THE COMIC BOOK COMPANY'S COMMON SHARES TO 30 A SHARE FROM 25 AND REDUCED THE NUMBER OF SHARES IT IS OFFERING TO BUY TO 10 MILLION FROM 11 MILLION ROBERT HALF INTERNATIONAL GAINED 1 1/8 TO 17 3/8 THE PERSONNEL PLACEMENT SERVICE COMPANY REPORTED FIRSTQUARTER PROFIT OF 20 CENTS A SHARE UP FROM SEVEN CENTS A YEAR AGO DAYTON HUDSON SLUMPED 3 1/4 TO 71 1/8 INVESTOR'S BUSINESS DAILY REPORTED THAT DAYTON HUDSON'S CHIEF FINANCIAL OFFICER HENRY DENERO EXPECTS ANALYSTS WILL BE CUTTING THEIR EARNINGS ESTIMATES FOR THE COMPANY IN FISCAL 1994 BY ABOUT 10 TO 15 ANALYSTS ARE CURRENTLY EXPECTING THE RETAILER TO EARN BETWEEN 575 AND 6 A SHARE FOR THE YEAR ENDING IN JANUARY 1994 STOCKS OF MINING COMPANIES ADVANCED AS GOLD RALLIED NEWMONT MINING ROSE 3 TO 45 7/8 HOMESTAKE MINING EDGED UP 1 5/8 TO 16 AND HECLA MINING ADDED 3/4 TO 11 5/8 EXXON SLID 1 5/8 TO 64 1/4 THE PETROLEUM PRODUCTS CONCERN REPORTED FIRSTQUARTER PROFIT OF 94 CENTS A SHARE COMPARED WITH 103 A YEAR AGO LAST YEAR'S PROFIT INCLUDED NONRECURRING CREDITS OF 158 MILLION WHILE THIS YEAR'S NET INCOME CONTAINED 47 MILLION IN SUCH CREDITS DAVE PETTIT CONTRIBUTED TO THIS ARTICLE 9304260118 930326 LETTERS TO THE EDITOR SEARS'S CATALOG CLOSING SETS OFF RIPPLES OF RUIN REGARDING YOUR MARCH 2 PAGEONE ARTICLE TRICKLEDOWN PAIN DEMISE OF THE CATALOG HURTS SMALL BUSINESSES THAT COUNTED ON SEARS WHAT BETTER WAY TO EXPLAIN TO THE INCREDULOUS IN OUR SOCIETY HOW TRICKLEDOWN ECONOMICS WORKS THAN WITH HARD FACTS YOUR ARTICLE ADDRESSING THE ADVERSE TRICKLEDOWN ECONOMIC EFFECTS OF CLOSING THE SEARS CATALOG WAS A PURE LESSON IN ECONOMICS YOU GOT THE MESSAGE ACROSS WITHOUT HAVING TO SUBJECT US TO THE PLETHORA OF ECONOMIC THEORIES WITH WHICH WE HAVE SO OFTEN BEEN BOMBARDED LATELY UNFORTUNATELY THE CLOSING OF THE SEARS CATALOG IS BUT ONE RECENT EXAMPLE OF WHAT IS WRONG WITH OUR ECONOMY TODAY THE NEGATIVE CASCADING MULTIPLIER EFFECT OF BUSINESS FAILURES AND JOB LOSSES CREATED BY THE DEMISE OF THE SEARS CATALOG ECONOMIC VACUUM IS ENORMOUS AT A&F CORP WE MAKE PAPERINDUSTRY MACHINERY OUR CUSTOMERS' LOSS OF THE SEARS MULTIMILLIONDOLLAR ANNUAL EXPENDITURE FOR PAPER TO PRINT THE CATALOG WILL TRANSLATE INTO ADDITIONAL LOSS OF JOBS REDUCED EARNINGS LOWER TAX REVENUES DECREASED LINES LOWERED CAPITAL EXPENDITURE BUDGETS AND FEWER PAPERINDUSTRY MACHINERY SALES SEE RELATED LETTER LETTERS TO THE EDITOR PROGRESS WSJ MARCH 31 1993 9303260129 9304010177 9304260112 930317 POLITICS & POLICY CRITICS SAY ANTITARIFF ACTIVISTS IN WASHINGTON HAVE GRASSROOTS BASE THAT'S MADE OF ASTROTURF BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CITIZENS FOR A SOUND ECONOMY A CONSERVATIVE LOBBYING GROUP DEDICATED TO FIGHTING DETROIT'S PUSH FOR STEEP TARIFFS ON FOREIGN MINIVANS BOASTS A GRASSROOTS COALITION THAT ROSS PEROT WOULD ENVY THE GROUP'S LITERATURE CLAIMS SUPPORT FROM LOCAL OUTPOSTS OF THE BOY SCOUTS AND GIRL SCOUTS THE MARCH OF DIMES THE AMERICAN HEART ASSOCIATION THE ARTHRITIS FOUNDATION AND ABOUT 50 OTHER GROUPS THERE'S JUST ONE PROBLEM THIS MARVEL OF COALITIONFORMING TURNS OUT TO HAVE BEEN BUILT PARTLY ON THE SLICKNESS OF THE WASHINGTON OPERATION AND THE GULLIBILITY OF HEARTLAND TYPES WHO SAY THEY DIDN'T REALIZE THAT THEY WERE JOINING ANY COALITION AT ALL USING AN ENCYCLOPEDIA OF REGIONAL STATE AND LOCAL ORGANIZATIONS CITIZENS FOR A SOUND ECONOMY CONTACTED LOCALCHAPTER OFFICIALS WITH THE GROUP'S PITCH WHICH IS ONE THAT MANY ECONOMISTS SUPPORT DETROIT'S EFFORT TO GET FOREIGN MINIVANS AND SPORTUTILITY VEHICLES RECLASSIFIED AS TRUCKS A MOVE THAT WOULD RAISE TARIFFS ON THE VEHICLES TO 25 FROM 25 IS PROTECTIONIST AND ANTICONSUMER IT ISN'T UNUSUAL FOR A LOBBYING GROUP TO LINE UP OTHER ORGANIZATIONS IN A COALITION WHAT'S UNUSUAL HERE IS HOW CITIZENS FOR A SOUND ECONOMY WENT ABOUT IT WHEN THE GROUP FOUND SOMEONE AT A LOCAL CHAPTER WHO AGREED WITH ITS STANCE THE PERSON WAS ASKED TO CALL HIS OR HER LAWMAKERS ON CAPITOL HILL OR WRITE LETTERS ON THE LOCALCHAPTER LETTERHEAD THEN CITIZENS FOR A SOUND ECONOMY ADDED THE NAME OF THE ORGANIZATION TO THE LIST OF GROUPS WHOSE STATE OR LOCAL CHAPTERS OPPOSED THE HIGHER TARIFFS NANCY MITCHELL THE GROUP'S VICE PRESIDENT FOR POLICY IMPLEMENTATION AND A FORMER CHIEF ECONOMIST AT THE REPUBLICAN NATIONAL COMMITTEE INSISTS THE ORGANIZATION NAMES WERE ONLY USED WITH THE EXPRESS PERMISSION OF A LOCAL OFFICIAL AND PAUL BECKNER PRESIDENT OF THE GROUP SAYS THAT ITS METHODS ARE ABOVEBOARD THIS IS AS SPONTANEOUS AS YOU GET HE DECLARES WE COULDN'T COERCE THEM HE SAYS OF THE GROUPS HIS COMMITTEE LISTS AS SUPPORTERS BUT COERCION ISN'T WHAT MANY OF THE SIGNEES CLAIM IT'S THAT THEY WERE MISLED TAKE CHRISTINE WATSON A MONTPELIER VT HOMEMAKER AND A FORMER PRESIDENT OF THE VERMONT MUSIC TEACHERS ASSOCIATION SHE SAYS THAT WHEN AN OFFICIAL OF CITIZENS FOR A SOUND ECONOMY TELEPHONED TO SAY HOW MUCH THE MINIVAN TARIFFS WOULD HURT SENIOR CITIZENS AND HANDICAPPED PEOPLE MS WATSON THOUGHT SHE WAS SOMEBODY SHE KNEW FROM THE LOCAL ARTS COUNCIL PERSUADED THAT THE TARIFFS WOULD BE A BAD THING SHE AGREED TO CONTACT HER SENATORS WHAT SHE DIDN'T KNOW IS THAT SHE HAD JUST SIGNED THE MUSIC TEACHERS ASSOCIATION ONTO THE WASHINGTON GROUP'S COALITION ROSTER NOR DID MS WATSON WHO BACKED A SOCIALIST FOR CONGRESS IN THE LAST ELECTION KNOW THAT CITIZENS FOR A SOUND ECONOMY IS RUN BY CONSERVATIVE VETERANS OF THE REAGAN AND BUSH ADMINISTRATIONS ITS CHAIRMAN IS FORMER REAGAN BUDGET DIRECTOR JAMES C MILLER III AND ITS STAFF INCLUDES A NUMBER OF REFUGEES FROM FORMER VICE PRESIDENT DAN QUAYLE'S COUNCIL ON COMPETITIVENESS WE'RE SCREAMING LIBERALS MS WATSON SAYS I DIDN'T REALIZE WHAT A PAWN I WAS IN THIS BIGGER PICTURE UNLIKE VERMONT'S MUSIC TEACHERS SOME GROUPS REALLY ARE EXERCISED ABOUT THE TARIFF ISSUE FOREIGNCAR DEALERS FOR EXAMPLE AND JAPANESE AND OTHER FOREIGN AUTOMAKERS THE HEAVYHITTING WASHINGTON LAW FIRM OF PATTON BOGGS & BLOW IS LOBBYING FOR THE ASSOCIATION OF INTERNATIONAL AUTOMOBILE MANUFACTURERS MAZDA MOTOR CORP HAS RETAINED THE EQUALLY POTENT FIRM OF AKIN GUMP STRAUSS HAUER & FELD CITIZENS FOR A SOUND ECONOMY HAS RECEIVED THOUSANDS OF DOLLARS FROM THE INTERESTS OPPOSED TO THE TARIFF INCREASES BUT IT WON'T DISCUSS THE CONTRIBUTIONS EXCEPT TO SAY THAT IT HASN'T BEEN BOUGHT MEANWHILE THE LIST OF GROUPS THAT SAY THEY NEVER INTENDED TO JOIN THE COALITION CONTINUES TO GROW JOHN GROOMS PRESIDENT OF THE ARTHRITIS FOUNDATION'S FLORIDA CHAPTER GOT A PACKAGE IN THE MAIL THIS PAST FALL BLASTING DETROIT'S CAMPAIGN IT INCLUDED A SAMPLE LETTER TO SEND TO WASHINGTON MR GROOMS SAYS HE ONLY SPENT FIVE MINUTES MAYBE 10 ON THE SUBJECT AND HAD HIS SECRETARY TYPE LETTERS TO HIS SENATORS WHAT HE SAYS HE DIDN'T KNOW WAS THAT HE HAD JUST SIGNED HIS GROUP ON TO THE COALITION SCOTT D BALLIN LEGISLATIVE COUNSEL FOR THE AMERICAN HEART ASSOCIATION COMPLAINS THAT WE GOT TAKEN FOR A RIDE HE SAYS CITIZENS FOR A SOUND ECONOMY TOLD HIM THE ARCADIA FLA CHAPTER OF THE HEART ASSOCIATION JOINED THE COALITION THROUGH A MEMBER MARGARET LEFEBVRE BUT IT TURNS OUT THERE ISN'T AN ARCADIA FLA CHAPTER MRS LEFEBVRE AN 87YEAROLD VOLUNTEER IN THE ORGANIZATION'S DESOTO COUNTY DIVISION WHICH COVERS ARCADIA REMEMBERS GETTING A PACKET OF MATERIAL BUT SAYS THAT IT PROBABLY ENDED UP IN THE TRASH I DIDN'T SIGN ANYTHING OR SEND ANYTHING I'M NOT THAT STUPID ANOTHER ORGANIZATION THAT SAYS IT SHOULDN'T BE ON THE LIST IS THE MARCH OF DIMES A SPOKESWOMAN SAYS THE GROUP'S VIRGINIA CHAPTER PRESIDENT THOUGHT THE PACKAGE SHE GOT ON THE ISSUE CAME FROM THE MARCH OF DIMES' OWN GOVERNMENTAFFAIRS PEOPLE MANY OF THE NATIONAL ORGANIZATIONS WHOSE NAMES HAVE TURNED UP ON THE OPPOSITION LIST SAY THEY ARE BAFFLED ABOUT HOW AND WHY THEY GOT THERE THIS WOULD REALLY BE OUT OF CHARACTER SAYS BOY SCOUTS OF AMERICA SPOKESMAN BLAKE LEWIS SUPPOSEDLY IT WAS THROUGH THE BURLINGTON COUNTY NJ COUNCIL BUT THE TOP SCOUT LEADER THERE INSISTS HIS GROUP HASN'T TAKEN A POSITION ON THE CONTROVERSY MEANWHILE LAVERNE ALEXANDER A GOVERNMENT RELATIONS CONSULTANT TO THE GIRL SCOUTS OF THE USA COMPLAINS THAT CITIZENS FOR A SOUND ECONOMY WON'T SAY WHY THEIR NAME IS BEING USED I CAN'T UNDERSTAND WHY IT'S SO SECRETIVE SHE SAYS THE ANTITARIFF COALITION INCLUDES SOME GROUPS THAT ARE GENUINELY CONCERNED WITH THE ISSUE SUCH AS THE AMERICAN FARM BUREAU FEDERATION THE NATIONAL CATTLEMEN'S ASSOCIATION AND THE NATIONAL ASSOCIATION OF STEVEDORES WHO WORRY THAT THE MINIVAN TARIFFS WOULD INCREASE TRADE TENSIONS WITH JAPAN A GROWING EXPORT MARKET FOR THEIR MEMBERS JEFF NESBIT SPOKESMAN FOR CITIZENS FOR A SOUND ECONOMY ACKNOWLEDGES THAT YOU'RE GOING TO MAKE SOME MISTAKES BY GOING THE LOCALCHAPTER ROUTE THOUGH HE INSISTS THAT THE COALITION REALLY IS BROADBASED BUT ANGRY SUPPORTERS OF THE TARIFF INCREASE INSIST THAT THE GRASSROOTS COALITION OPPOSING THEM IS REALLY NOTHING BUT WELL ASTROTURF THEY RIDICULE THE LOBBYING GROUP'S EFFORTS TO APPROPRIATE THE NAMES OF RESPECTED ORGANIZATIONS FORD CHAIRMAN HAROLD A POLING NARROWS HIS GAZE AND SAYS SARCASTICALLY AFTER ALL IT IS THE BOY SCOUTS OF AMERICA AND CHRYSLER PRESIDENT ROBERT A LUTZ STARING OUT A RESTAURANT WINDOW OBSERVES OH YES THE MOTHERS OF AMERICA TAKING THEIR KIDS TO BOY SCOUT TROOP MEETINGS THAT'S ALL VERY HEARTWARMING THE ASSOCIATION OF INTERNATIONAL AUTOMOBILE MANUFACTURERS IS REPRESENTED BY POWELL TATE A WASHINGTONBASED PUBLICRELATIONS FIRM IN A MARCH 17 POLITICS & POLICY ARTICLE ABOUT PROPOSED TARIFF INCREASES ON IMPORTED MINIVANS IT WAS INCORRECTLY STATED THAT THE TRADE GROUP WAS REPRESENTED IN ITS ANTITARIFF LOBBYING EFFORT BY THE WASHINGTON LAW FIRM OF PATTON BOGGS & BLOW SEE RELATED LETTER FOREIGN MINIVAN TARIFF MAY HIT FAMILIES HARD APRIL 19 1993 9303170057 9303290059 9304190153 9304260083 930324 RULE OF LAW JUNK SCIENCE IN THE COURTROOM BY DAVID E BERNSTEIN NEXT WEEK THE SUPREME COURT WILL HAVE THE OPPORTUNITY TO CRACK DOWN ON THE PROLIFERATION OF JUNK SCIENCE IN AMERICAN COURTROOMS THE OCCASION IS A CASE CALLED DAUBERT V MERRELL DOW PHARMACEUTICALS ON WHICH THE COURT IS SCHEDULED TO HEAR ARGUMENTS TUESDAY AT ISSUE IS WHETHER THE FEDERAL RULES OF EVIDENCE REQUIRE OR EVEN PERMIT A COURT TO ADHERE TO THE COMMONLAW FRYE RULE THE FRYE RULE HOLDS THAT A COURT SHOULD EXCLUDE EXPERT SCIENTIFIC EVIDENCE THAT IS BASED ON A THEORY OR METHOD THAT IS NOT GENERALLY ACCEPTED IN THE SCIENTIFIC COMMUNITY DAUBERT INVOLVES TWO BOYS BORN WITH TRAGIC BIRTH DEFECTS THAT REDUCED THE SIZE OF THEIR LIMBS THEIR PARENTS FILED SUIT ALLEGING THAT THE DEFORMITIES WERE CAUSED BY THEIR MOTHERS' USE OF BENDECTIN A ONCE COMMONLY PRESCRIBED MORNING SICKNESS DRUG DURING PREGNANCY THE PROBLEM FACING THE PLAINTIFFS WAS THAT THE DEFENDANT PRESENTED THE TRIAL COURT WITH OVERWHELMING SCIENTIFIC EVIDENCE FROM EPIDEMIOLOGICAL STUDIES SHOWING THAT FETUSES EXPOSED TO BENDECTIN DO NOT HAVE A HIGHER RATE OF LIMB REDUCTIONS THAN THOSE NOT EXPOSED THE PLAINTIFFS COUNTERED BY PRESENTING EXPERTS WHO TESTIFIED THAT BASED ON THEIR REANALYSES OF THE DATA USED IN THOSE EPIDEMIOLOGICAL STUDIES THEY BELIEVED THAT BENDECTIN DOES CAUSE BIRTH DEFECTS THE DISTRICT COURT FOUND THAT THIS WAS NOT COMPETENT EVIDENCE AND GRANTED SUMMARY JUDGMENT FOR THE DEFENDANT THE PLAINTIFFS NEXT APPEALED TO THE NINTH CIRCUIT COURT OF APPEALS WHICH AFFIRMED IN AN OPINION WRITTEN BY JUDGE ALEX KOZINSKI JUDGE KOZINSKI NOTED THAT THE PLAINTIFFS' EXPERTS HAD NOT SUBMITTED THEIR REANALYSES TO PEER REVIEW OR PUBLISHED THEM IN A SCIENTIFIC JOURNAL HE EXPLAINED THAT BECAUSE THE EXPERTS' REANALYSES WERE NOT SUBJECTED TO VERIFICATION AND SCRUTINY BY OTHERS IN THE FIELD THE RESULTS OF THEIR STUDIES WOULD NOT BE GENERALLY ACCEPTED IN THE SCIENTIFIC COMMUNITY THE LEGAL BASIS OF JUDGE KOZINSKI'S OPINION WAS THE FRYE RULE NAMED AFTER THE 1923 CASE IN WHICH IT ORIGINATED THE VAST MAJORITY OF COURTS ADHERED TO THE FRYE RULE UNTIL THE PROMULGATION OF THE FEDERAL RULES OF EVIDENCE IN 1975 FEDERAL RULE 702 PROVIDES THAT SCIENTIFIC EVIDENCE IS ADMISSIBLE IF THE PROFFERED EXPERT QUALIFIES AS SUCH AND HIS TESTIMONY WILL ASSIST THE TRIER OF FACT TO UNDERSTAND THE EVIDENCE OR TO DETERMINE A FACT IN ISSUE WHILE FRYE IS NOT MENTIONED THERE IS NO INDICATION IN THE LEGISLATIVE HISTORY OF THE RULES THAT IT WAS MEANT TO BE REJECTED BECAUSE OF FRYE'S GENERAL ACCEPTANCE TEST THE DETERMINATION OF WHAT IS APPROPRIATE SCIENTIFIC EVIDENCE FOR LEGAL PURPOSES WAS LARGELY IN THE HANDS OF THE MAINSTREAM SCIENTIFIC COMMUNITY WITH THE PROMULGATION OF THE FEDERAL RULES HOWEVER SOME JUDGES BELIEVED THAT THEY WERE GIVEN WIDE LATITUDE IN DETERMINING WHETHER QUESTIONABLE SCIENTIFIC TESTIMONY WOULD BE HELPFUL AND THEREFORE ADMISSIBLE THE RESULT WAS A SERIES OF EMBARRASSING DECISIONS IN CASES INVOLVING SCIENTIFIC EVIDENCE MOST PROMINENT WAS WHAT HAS BECOME KNOWN AS THE SPERMICIDE CASE THE CASE INVOLVED YOUNG KATIE WELLS A GIRL BORN WITH TRAGIC BIRTH DEFECTS HER MOTHER SUED ORTHO PHARMACEUTICAL IN FEDERAL COURT IN GEORGIA CLAIMING THAT ITS SPERMICIDAL JELLY ORTHOGYNOL WAS RESPONSIBLE FOR KATIE'S DEFECTS THE CASE WAS HEARD IN 1985 BEFORE DISTRICT JUDGE MARVIN SHOOB JUDGE SHOOB UNFORTUNATELY DID NOT SCREEN THE EVIDENCE TO ENSURE THAT IT WAS GENERALLY ACCEPTED BY THE RELEVANT SCIENTIFIC COMMUNITY DESPITE THE OVERWHELMING CONSENSUS OF SCIENTIFIC OPINION THAT THE SPERMICIDE INVOLVED NONOXYNOL9 COULD NOT HAVE CAUSED THE BIRTH DEFECTS JUDGE SHOOB SITTING WITHOUT A JURY FOUND FOR THE PLAINTIFF AND AWARDED 5 MILLION IN COMPENSATION FOR KATIE WELLS'S INJURIES JUDGE SHOOB CITED SEVERAL SCIENTIFIC STUDIES IN HIS DECISION BUT ONLY ONE OF THEM DIRECTLY INVESTIGATED A RELATIONSHIP BETWEEN SPERMICIDE USE AND BIRTH DEFECTS OF THE SORT THAT AFFLICTED KATIE THAT STUDY HAD BEEN REVIEWED BY THE FOOD AND DRUG ADMINISTRATION WHICH FOUND IT INCONCLUSIVE ONE OF THE STUDY'S AUTHORS APPEARED AT THE TRIAL AND WARNED JUDGE SHOOB NOT TO CONSTRUE IT AS PROVING A LINK BETWEEN SPERMICIDES AND BIRTH DEFECTS THE JUDGE HE LATER REMARKED HAD EITHER IGNORED OR FAILED TO UNDERSTAND HIS TESTIMONY JUDGE SHOOB'S PUBLISHED OPINION SUGGESTS THAT HE EMPHASIZED THE DEMEANOR AND TONE OF THE EXPERTS AND HIS PERCEPTION OF THEIR BIASES AND MOTIVES MORE THAN THE SUBSTANCE OF THEIR TESTIMONY MANY IN THE SCIENTIFIC AND MEDICAL COMMUNITIES WERE UPSET WHEN THE 11TH CIRCUIT COURT OF APPEALS AFFIRMED THE SPERMICIDE CASE MARKED A TURNING POINT IN THE ANNALS OF JUNK SCIENCE EMBARRASSED JUDGES BEGAN TO RETURN TO THE FRYE RULE AND TO OTHERWISE MORE STRICTLY SCRUTINIZE SCIENTIFIC TESTIMONY BEFORE ADMITTING IT INTO EVIDENCE THE RESULT HAS BEEN A GREATER CONVERGENCE BETWEEN SCIENTIFIC OPINION AND COURTROOM RESULT FOR EXAMPLE ANOTHER SPERMICIDE CASE MAKING ALMOST IDENTICAL CLAIMS HAD BEEN FILED IN THE SAME COURT AS THE WELLS CASE AT ABOUT THE SAME TIME BECAUSE OF PROCEDURAL DELAYS THAT CASE WAS NOT HEARD UNTIL 1991 THIS TIME A DIFFERENT JUDGE EXCLUDED THE TESTIMONY OF THE PLAINTIFFS' EXPERTS AND FOUND FOR THE DEFENDANT THE JUDGE NOTED THAT IN THE ENSUING SIX YEARS THE STANDARDS FOR ADMITTING SCIENTIFIC EVIDENCE HAD GROWN FAR STRICTER AND THAT THE SAME EVIDENCE JUDGE SHOOB RELIED UPON IN FINDING FOR THE PLAINTIFF WAS NO LONGER ADMISSIBLE DESPITE THIS STRICTSCRUTINY TREND JUNKSCIENCE LITIGATION CONTINUES TO BE A PROBLEM ELECTRIC POWER LINES ARE ATTRACTING JUNKSCIENCEBASED LITIGATION AS ARE VIDEO DISPLAY TERMINALS JUNKSCIENCE CLAIMS ABOUT SILICONE BREAST IMPLANTS AND IMMUNESYSTEM PROBLEMS ARE ALSO BEGINNING TO HIT THE COURTS ALREADY RESULTING IN ONE AWARD OF 25 MILLION AND DESPITE OVERWHELMING DEFEAT THUS FAR FOR PLAINTIFFS' LAWYERS BENDECTIN CLAIMS CONTINUE TO BE LITIGATED A SUPREME COURT OPINION AFFIRMING THAT THE FRYE RULE WAS NOT MOOTED BY THE PASSAGE OF THE FEDERAL RULES OF EVIDENCE WOULD DISCOURAGE SEVERELY THIS LITIGATION AS WELL AS FUTURE JUNKSCIENCE CLAIMS OF COURSE THE SUPREME COURT CANNOT SIMPLY LOOK AT THE EFFECTS OF ITS RULINGS ITS DUTY IS TO CONSIDER THE UNDERLYING LAW SOME SCHOLARS ARGUE THAT RULE 702 SUPERSEDES THE FRYE RULE WHILE MANY OTHERS DISAGREE IN RESOLVING THIS ISSUE IN DAUBERT THE COURT SHOULD KEEP IN MIND THE TEXT OF RULE 102 OF THE FEDERAL RULES OF EVIDENCE WHICH PROVIDES OVERALL GUIDANCE FOR INTERPRETING THE FEDERAL RULES THESE RULES SHALL BE CONSTRUED TO THE END THAT TRUTH MAY BE ASCERTAINED AND PROCEEDINGS JUSTLY DETERMINED A DECISION REAFFIRMING THE FRYE RULE OR ESTABLISHING A NEW SIMILARLY STRICT STANDARD FOR ADMISSIBLE SCIENTIFIC EVIDENCE WOULD SERVE TO ADVANCE THESE GOALS SIGNIFICANTLY MR BERNSTEIN A WASHINGTON ATTORNEY IS COEDITOR OF THE FORTHCOMING PHANTOM RISK SCIENTIFIC INFERENCE AND THE LAW MIT SEE RELATED LETTER LETTERS TO THE EDITOR PEER REVIEW DOESN'T STAND UP IN COURT WSJ APRIL 26 1993 9303240082 9304260075 930331 HOMOSEXUALS AND THE 10 FALLACY BY J GORDON MUIR HOW MANY AMERICANS ARE HOMOSEXUAL FOR YEARS CONVENTIONAL WISDOM HAS SAID THAT 10 OR MORE OF THE POPULATION IS GAY DERIVED FROM SURVEYS IN THE 1940S BY PIONEER SEX RESEARCHER ALFRED C KINSEY THE ONEIN10 FIGURE IS ROUTINELY CITED IN ACADEMIC WORKS SEX EDUCATION MATERIALS GOVERNMENT REPORTS AND THE MEDIA THE 10 ESTIMATE ALSO HAS BEEN USED EXTENSIVELY BY ACTIVISTS LOBBYING FOR GAYAFFIRMATION PROGRAMS AND EXTENSIONS OF FAMILY BENEFITS TO HOMOSEXUAL EMPLOYEES OF MAJOR CORPORATIONS AS WELL AS SEEN AS EVIDENCE OF GAYS' VOTING CLOUT BUT THERE LONG HAS BEEN MUCH EVIDENCE THAT THE 10 ESTIMATE IS FAR TOO HIGH SURVEYS WITH LARGE SAMPLES FROM THE US CANADA BRITAIN FRANCE NORWAY DENMARK AND OTHER NATIONS GIVE A PICTURE OF HOMOSEXUALITY EXPERIENCE RATES OF 6 OR LESS WITH AN EXCLUSIVE HOMOSEXUALITY PREVALENCE OF 1 OR LESS THE MOST COMPREHENSIVE EXAMPLE IS THE CONTINUING SURVEY CONDUCTED BY THE US CENSUS BUREAU SINCE 1988 FOR THE NATIONAL CENTER FOR HEALTH STATISTICS OF THE CENTERS FOR DISEASE CONTROL THE SURVEY WHICH POLLS ABOUT 10000 SUBJECTS QUARTERLY ON AIDS KNOWLEDGE AND ATTITUDES ASKS CONFIDENTIALLY IF ANY OF SEVERAL STATEMENTS IS TRUE INCLUDING THIS ONE YOU ARE A MAN WHO HAS HAD SEX WITH ANOTHER MAN AT SOME TIME SINCE 1977 EVEN ONE TIME NO MORE THAN 2 TO 3 OF THE MORE THAN 50000 MEN SURVEYED HAVE ANSWERED YES TO AT LEAST ONE STATEMENT SINCE SOME YES ANSWERS WERE GIVEN TO THE FOUR OTHER QUESTIONS BLOOD TRANSFUSIONS INTRAVENOUS DRUG USE ETC THE DATA STRONGLY SUGGEST THAT THE PREVALENCE OF EVEN INCIDENTAL HOMOSEXUAL BEHAVIOR IS LESS THAN 2 FOR MEN MOST STUDIES REPORT THAT WOMEN HAVE ABOUT HALF OF THE MALE PREVALENCE RATE SO A GENERAL POPULATION ESTIMATE FOR HOMOSEXUALITY WOULD FALL BELOW 15 A NATIONAL POLL SHOWED THAT 24 OF VOTERS IN THE 1992 PRESIDENTIAL ELECTION DESCRIBED THEMSELVES AS HOMOSEXUAL NUMEROUS OTHER SURVEYS REVEAL SIMILAR PERCENTAGES FATHERSON RESEARCHERS PAUL AND KIRK CAMERON HAVE COMPILED A NEW REPORT THE PREVALENCE OF HOMOSEXUALITY SCHEDULED TO BE PUBLISHED IN PSYCHOLOGICAL REPORTS THAT SUMMARIZES MORE THAN 30 SURVEYS WITH LARGE PLAUSIBLY UNBIASED SAMPLES HERE ARE A FEW OF THEM FRANCE A 199192 GOVERNMENT SURVEY OF 20055 ADULTS REPORTS THAT 14 OF MEN AND 04 OF WOMEN HAD HAD HOMOSEXUAL INTERCOURSE IN THE FIVE YEARS PRECEDING THE SURVEY THE EXCLUSIVE LIFETIME HOMOSEXUAL RATES WERE 07 FOR MEN AND 06 FOR WOMEN LIFETIME HOMOSEXUALITY EXPERIENCE WAS 41 FOR MEN AND 26 FOR WOMEN BRITAIN A 199091 NATIONWIDE SURVEY OF 18876 ADULTS AGED 16 TO 59 REPORTS THAT 14 OF MEN HAD HAD HOMOSEXUAL CONTACT IN THE FIVE YEARS PRECEDING THE SURVEY ONLY 61 OF MEN HAD ANY LIFETIME HOMOSEXUAL EXPERIENCE US A NATIONWIDE 1989 HOUSEHOLD SAMPLE OF 1537 ADULTS CONDUCTED BY THE NATIONAL OPINION RESEARCH CENTER AT THE UNIVERSITY OF CHICAGO FINDS THAT OF SEXUALLY ACTIVE ADULTS OVER 18 12 OF MALES AND 12 OF FEMALES REPORTED HOMOSEXUAL ACTIVITY IN THE YEAR PRECEDING THE SURVEY 49 TO 56 OF BOTH SEXES REPORTED SINCE AGE 18 HAVING HAD PARTNERS OF BOTH GENDERS AND 06 TO 07 EXCLUSIVELY HOMOSEXUAL PARTNERS US A STRATIFIED CLUSTER SAMPLE FROM THE MINNESOTA ADOLESCENT HEALTH SURVEY 198687 OF 36741 PUBLIC SCHOOL STUDENTS IN SEVENTH THROUGH 12TH GRADE FOUND THAT 06 OF THE BOYS AND 02 OF THE GIRLS IDENTIFIED THEMSELVES AS MOST OR 100 HOMOSEXUAL 07 OF THE BOYS AND 08 OF THE GIRLS IDENTIFIED THEMSELVES AS BISEXUAL AND 101 OF MALES AND 113 OF FEMALES WERE UNSURE CANADA A NATIONWIDE CLUSTER RANDOM SAMPLE OF 5514 FIRSTYEAR COLLEGE STUDENTS UNDER AGE 25 FINDS 98 HETEROSEXUAL 1 BISEXUAL 1 HOMOSEXUAL NORWAY A 1987 NATIONWIDE RANDOM MAIL SAMPLE OF 6155 ADULTS AGE 1860 FINDS THAT 09 OF MALES AND 09 OF FEMALES HAD HOMOSEXUAL EXPERIENCES WITHIN THREE YEARS OF THE SURVEY AND 35 OF MALES AND 3 OF FEMALES HAD EVER HAD ANY HOMOSEXUAL EXPERIENCE DENMARK A 1989 STRATIFIED RANDOM SAMPLE OF 3178 ADULTS AGE 1859 FINDS HOMOSEXUAL INTERCOURSE REPORTED BY 27 OF SEXUALLY EXPERIENCED MALES LESS THAN 1 OF MEN WERE EXCLUSIVELY HOMOSEXUAL MANY OTHER STUDIES ALSO VARY GREATLY FROM THE KINSEY RESEARCH WHICH IN RETROSPECT HAS LITTLE VALIDITY THE WIDELY PUBLICIZED NEW JANUS REPORT 9 OF MEN AND 5 OF WOMEN MAY BE CONSIDERED HOMOSEXUALS WAS BASED ON A NONRANDOM SAMPLE AMONG OTHER PROBLEMS METHODOLOGICAL FLAWS ARE LIKELY TO HAVE CONTRIBUTED TO ITS OUTOFSTEP RESULTS AMONG KINSEY'S MOST SERIOUS FLAWS ABOUT 25 OF KINSEY'S 5300 MALE SUBJECTS WERE FORMER OR PRESENT PRISONERS A HIGH PERCENTAGE WERE SEX OFFENDERS HE HAD THE HISTORIES OF ABOUT 1400 MANY RESPONDENTS WERE RECRUITED FROM SEX LECTURES WHERE THEY HAD GONE TO GET THE ANSWER TO SEX PROBLEMS OTHERS WERE RECRUITED BY UNDERWORLD FIGURES AND LEADERS OF HOMOSEXUAL GROUPS AT LEAST 200 MALE PROSTITUTES WERE AMONG HIS INTERVIEWEES AND COULD HAVE AMOUNTED TO AS MUCH AS 4 OF HIS SAMPLE SOME GROUPS WERE UNDERREPRESENTED SUCH AS CHURCH ATTENDERS OTHERS WERE MISSING ENTIRELY KINSEY REPRESENTED THIS AS A CAREFULLY PLANNED POPULATION SURVEY HIS ALLEGED MIRROR OF WHAT THE NATION WAS DOING SEXUALLY KICKED OFF THE SEXUAL REVOLUTION EVEN KINSEY NEVER SAID THAT 10 OF THE POPULATION WAS HOMOSEXUAL ONLY THAT 10 OF MEN OVER AGE 16 ARE MORE OR LESS EXCLUSIVELY HOMOSEXUAL FOR PERIODS OF UP TO THREE YEARS BY DEFINING ADULT AS AGE 16 AND OVER KINSEY MISREPRESENTED AS ADULT BEHAVIOR HOMOSEXUAL PLAY AMONG HETEROSEXUAL ADOLESCENTS THAT MAY HAVE OCCURRED ONLY ONCE FOR WOMEN THE FIGURE WAS ABOUT HALF OF THE MALE PREVALENCE AS FOR LIFELONG EXCLUSIVE HOMOSEXUALITY KINSEY PLACED THE FIGURE AT 4 AND AS FOR ANY OVERT HOMOSEXUAL EXPERIENCE 37 KINSEY'S FAILINGS ASIDE SEX SURVEYS SHOULD NEVER BE CONSIDERED AS SINGULARLY DEFINITIVE BECAUSE OF THE PROBLEM OF VOLUNTEER BIAS MANY PEOPLE DON'T WANT TO DISCUSS THEIR MOST INTIMATE SEXUAL NATURES WITH A CLIPBOARDBEARING STRANGER OR AN ANONYMOUS TELEPHONE INTERVIEWER THE REFUSAL RATE FOR SEX SURVEYS RANGES WIDELY WITH SOME REPORTING REJECTIONS OF MORE THAN 50 ALTHOUGH HOMOSEXUALS CONTEND THAT SOCIAL STIGMA PREVENTS THEM FROM FULL REPRESENTATION IN SURVEYS RESEARCHERS HAVE FOUND THAT THE SEXUALLY UNCONVENTIONAL ARE MORE EAGER TO DISCUSS SEX THAN PEOPLE ARE GENERALLY ALTHOUGH KINSEY HAD BEEN CRITICIZED EARLY ON BY OTHER SCIENTISTS INCLUDING PSYCHOLOGIST ABRAHAM MASLOW WHOSE ADVICE HE IGNORED THE 10 FALLACY WAS REVEALED IN THE MID1980S WHEN STATISTICIANS BEGAN TRACKING AIDS CASES ADAPTING THE 10 ESTIMATE AND KNOWN RATES OF INFECTION WITH HIV AMONG GAY MEN NEW YORK CITY'S DEPARTMENT OF HEALTH GROSSLY OVERESTIMATED THE SIZE OF THE CITY'S HIVINFECTED GAY POPULATION AS 250000 INDIRECTLY PLACING THE TOTAL NUMBER OF HOMOSEXUALBISEXUAL MEN AT 400000 TO 500000 IN 1988 THESE FIGURES HAD TO BE REVISED DOWN TO 50000 AND 100000 RESPECTIVELY THE CENTERS FOR DISEASE CONTROL HAS ALSO STOPPED USING THE KINSEY DATA FOR NATIONAL PROJECTIONS IT WAS NO ACCIDENT THAT THE 10 FIGURE BECAME ENGRAVED IN STONE IN THEIR 1989 BOOK AFTER THE BALL A BLUEPRINT FOR GAY POLITICAL ACTIVISM MARSHALL KIRK AND HUNTER MADSEN BOAST THAT WHEN STRAIGHTS ARE ASKED BY POLLSTERS FOR A FORMAL ESTIMATE THE FIGURE PLAYED BACK MOST OFTEN IS THE 10 GAY' STATISTIC WHICH OUR PROPAGANDISTS HAVE BEEN DRILLING INTO THEIR HEADS FOR YEARS NOW THAT THE MYTHOLOGY SURROUNDING KINSEY'S HOMOSEXUALITY STATISTICS IS BEING LAID TO REST PERHAPS IT'S TIME TO EXAMINE SOME OTHER KINSEY CONCLUSIONS A GOOD PLACE TO START WOULD BE HIS FINDINGS ON CHILDHOOD SEXUALITY KINSEY'S RESEARCH CONTAINS THE ONLY BODY OF EXPERIMENTAL DATA PURPORTING TO DEMONSTRATE THAT CHILDREN FROM A VERY YOUNG AGE ARE SEXUAL AND HAVE SEXUAL NEEDS THIS WISDOM IS PART OF THE SCIENTIFIC FOUNDATION OF MODERN SEX EDUCATION ALLOWING LESTER KIRKENDALL A SEX EDUCATION PIONEER AND KINSEY COLLEAGUE TO PREDICT IN A PROFESSIONAL JOURNAL IN 1985 THAT ONCE OUR SENSE OF GUILT DIMINISHES CROSSGENERATIONAL ADULTCHILD SEX AND OTHER FORMS OF SEXUAL EXPRESSION WILL BECOME LEGITIMATE BUT THE KINSEY FINDINGS ARE BASED ON CRIMINAL EXPERIMENTS CONDUCTED BY PEDOPHILES WHO SEXUALLY STIMULATED INFANTS AS YOUNG AS TWO MONTHS AND CHILDREN AGAINST THEIR WILL WITHOUT PARENTAL CONSENT OBVIOUSLY FOR UP TO 24 HOURS AT A TIME KINSEY COMPILED THESE DATA IN A SERIES OF TABLES ILLUSTRATING NORMAL CHILDHOOD SEXUAL RESPONSE AND ORGASMIC CAPACITY A LANCET REVIEWER HAS CALLED FOR AN EXPLANATION FROM KINSEY'S SURVIVING COWORKERS NONE HAS BEEN OFFERED THE NATIONAL INSTITUTES OF HEALTH'S FRAUD SPECIALIST WALTER STEWART HAS CALLED FOR AN INVESTIGATION IT'S ABOUT TIME DR MUIR A PHYSICIAN AND FORMER MEDICAL RESEARCHER IS CONTRIBUTING AUTHOR EDITOR AND COPUBLISHER OF KINSEY SEX AND FRAUD HUNTINGTON HOUSE PUBLISHERS 1990 ROBERT H KNIGHT OF THE FAMILY RESEARCH COUNCIL CONTRIBUTED TO THIS ARTICLE SEE RELATED LETTERS LETTERS TO THE EDITOR FEWER GAYS MORE HOMOPHOBIA WSJ APRIL 26 1993 9303310022 9304230200 930423 CANADIAN STEEL OUTPUT UP OTTAWA CANADIAN STEEL PRODUCTION TOTALED 297237 METRIC TONS IN THE WEEK ENDED SATURDAY UP 24 FROM 290208 TONS IN THE PRECEDING WEEK AND UP 67 FROM 278661 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 22046 POUNDS THE CUMULATIVE TOTAL FOR 1993 AS OF SATURDAY WAS 4183429 TONS UP 26 FROM 4077939 TONS A YEAR EARLIER 9304230199 930423 MCDONALD'S POSTS 16 PROFIT RISE BUT SHARES DROP BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL MCDONALD'S CORP REPORTED A 16 INCREASE IN FIRSTQUARTER EARNINGS TO A RECORD 2183 MILLION BUT INVESTORS HAD EXPECTED MORE AND THE FASTFOOD CONCERN'S STOCK SLIPPED PERSHARE EARNINGS TOTALED 57 CENTS COMPARED WITH 51 CENTS A YEAR EARLIER WHEN 23 MILLION FEWER SHARES WERE OUTSTANDING REVENUE INCREASED 22 TO 165 BILLION FROM 162 BILLION AND SYSTEMWIDE SALES WHICH INCLUDES THOSE AT FRANCHISED AS WELL AS COMPANYOWNED RESTAURANTS GREW 65 TO 52 BILLION FROM 49 BILLION BUT WALL STREET WAS DISAPPOINTED THE CONSENSUS AMONG ANALYSTS HAD BEEN FOR 59 CENTS A SHARE WITH A RANGE OF 5764 CENTS SHARES OF MCDONALD'S WERE TRADING AT 46875 OFF 875 CENTS IN HEAVY TRADING ON THE NEW YORK STOCK EXCHANGE LATE YESTERDAY MCDONALD'S IS AMONG THE 30 STOCKS MAKING UP THE DOW JONES INDUSTRIAL AVERAGE AND IT HELPED PULL DOWN THE WIDELY WATCHED INDICATOR IN THE PAST 13 TRADING DAYS MCDONALD'S STOCK HAS DECLINED ABOUT 5 A SHARE FIRSTQUARTER RESULTS WERE DRAGGED DOWN BY HIGHER BEEF AND PAPERPRODUCTS PRICES WEAK FOREIGN CURRENCIES AND MARCH'S SEVERE STORMS WHICH REDUCED PATRONAGE PROFIT MARGINS AT COMPANYOPERATED STORES SLIPPED TO 174 FROM 179 THEY'RE UP AGAINST VERY TOUGH COMPETITION IN US CURRENCY PROBLEMS AROUND THE WORLD CONTINUED WEAKNESS IN JAPAN AND THE BIG QUESTION OF HOW LONG WILL THE EUROPEAN RECESSIONS LAST SAID CAROLINE LEVY A LEHMAN BROTHERS FOODSECTOR ANALYST SHE HAS CUT HER FULLYEAR EARNINGS ESTIMATE TO 295 FROM 3 AND LOWERED HER RATING ON THE STOCK TO BASICALLY NEUTRAL ON THE BASIS OF ITS PRICE RUNUP IN RECENT MONTHS HUGH ZURKUHLEN AN ANALYST AT WEISS PECK & GREER CALCULATED THAT THE WINTER STORMS THAT SWEPT MUCH OF THE COUNTRY MAY HAVE COST MCDONALD'S 60 MILLION IN SYSTEMWIDE SALES GIVEN THE QUARTER'S DIFFICULTIES I'M SURPRISED THE EARNINGS WEREN'T WORSE HE SAID MCDONALD'S SAID IN OAK BROOK ILL THAT ITS RESULTS WOULD HAVE BEEN STRONGER BUT FOR SEVERAL FACTORS INCLUDING THE LOSS OF ONE DAY AS 1992 WAS A LEAP YEAR STILL THE COMPANY SAID IT'S ON THE TRACK OF ACHIEVING TEENS GROWTH IN EARNINGS OVER A FIVEYEAR PERIOD DOMESTIC SALES GREW 6 DURING THE QUARTER WHILE THOSE OUTSIDE THE US WERE UP 7 BUT IN JAPAN MCDONALD'S LARGEST OVERSEAS MARKET THE SLUGGISH ECONOMY CONTINUED TO SEVERELY HURT RESULTS THE COMPANY SAID MCDONALD'S HAS 970 RESTAURANTS IN JAPAN 97 MORE THAN A YEAR AGO FOREIGN EXCHANGE PROVED COSTLY PARTICULARLY IN BRITAIN WHERE EXPOSURE TO THE POUND SEVERELY IMPACTED MARGINS AT COMPANYOPERATED STORES SEVERAL ANALYSTS WERE CHEERED BY THE COMPANY'S ANNOUNCEMENT YESTERDAY THAT IT INTENDS TO INCREASE ITS STOCK REPURCHASES THIS YEAR BY 200 MILLION TO 270 MILLION THAT INDICATES HOW MUCH THEY HAVE SQUEEZED DOWN CONSTRUCTION AND OTHER GROWTH OF BUSINESS COSTS ONE SAID 9304230198 930423 BUSINESS BRIEF KNIGHTRIDDER INC NEWSPAPER CONCERN HAS NET OF 231 MILLION IN 1ST PERIOD KNIGHTRIDDER INC POSTED A FIRSTQUARTER PROFIT AGAINST A LOSS THAT RESULTED FROM AN ACCOUNTING CHARGE IN THE YEARAGO PERIOD THE NEWSPAPER AND INFORMATION COMPANY WHICH IS BASED IN MIAMI HAD FIRSTQUARTER NET OF 231 MILLION OR 42 CENTS A SHARE COMPARED WITH A LOSS OF 802 MILLION OR 147 A SHARE A YEAR AGO THE EARNINGS FELL WITHIN THE RANGE OF ANALYSTS' ESTIMATES ALTHOUGH ON THE LOW END THE LOSS FOR THE 1992 QUARTER REFLECTED A CHARGE OF 131 MILLION FROM THE ADOPTION OF A NEW ACCOUNTING STANDARD FOR EMPLOYEES' RETIREMENT BENEFITS EXCLUDING THE CHARGE THE COMPANY EARNED 25 MILLION OR 46 CENTS A SHARE IN THE YEAREARLIER FIRST QUARTER REVENUE ROSE 51 TO 5839 MILLION FROM 5554 MILLION KNIGHTRIDDER'S GENERAL AD REVENUE DECLINED SLIGHTLY BUT RETAIL AD REVENUE ROSE 23 AND CLASSIFIED AD REVENUES ROSE A STRONG 93 9304230197 930423 UNICARE TO REPORT SHARPLY HIGHER NET FOR THE FIRST QUARTER IRVINE CALIF UNICARE FINANCIAL CORP EXPECTS TO POST SHARPLY HIGHER FIRSTQUARTER EARNINGS OF BETWEEN 24 MILLION AND 25 MILLION AND ANTICIPATES THAT FULLYEAR NET INCOME COULD BE DOUBLE ANALYSTS' ESTIMATES RUSSELL E LEATHERBY CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE EXPECTED FIRSTQUARTER NET INCOME OF BETWEEN 48 CENTS AND 50 CENTS A SHARE AMOUNTS TO NEARLY THREE TIMES AS MUCH AS THE WORKERS' COMPENSATION INSURER POSTED IN THE SAME PERIOD LAST YEAR WHEN IT HAD NET INCOME OF 914000 OR 18 CENTS A SHARE AFTER A ONETIME GAIN OF 502000 OR 10 CENTS A SHARE THE ONETIME ITEM WAS RELATED TO A CHANGE IN ACCOUNTING FOR INCOME TAXES MR LEATHERBY SAID UNICARE EXPECTS TO HAVE FIRSTQUARTER REVENUE IN EXCESS OF 36 MILLION COMPARED WITH 336 MILLION IN THE YEAREARLIER PERIOD FOR THE FULL YEAR HE ADDED THAT UNICARE WILL DO SIGNIFICANTLY BETTER THAN ANALYSTS' PERSHARE ESTIMATES OF 75 CENTS TO 1 FOR 1992 UNICARE HAD NET INCOME OF 35 MILLION OR 70 CENTS A SHARE REVENUE WAS 146 MILLION MR LEATHERBY ATTRIBUTED THE IMPROVED RESULTS TO A GENERAL DECLINE IN FRAUDULENT AND RECESSIONRELATED WORKERS' COMPENSATION INSURANCE CLAIMS IN CALIFORNIA WHERE THE COMPANY MARKETS ITS SERVICES THE CALIFORNIA WORKERS' COMPENSATION INSURANCE INDUSTRY WENT THROUGH A BAD PERIOD IN 1991 AND 1992 HE SAID NOW THE FREQUENCY OF CLAIMS HAS DECREASED AND THE LEVEL OF WHAT WE WOULD PERCEIVE AS ABUSIVETYPE CLAIMS SEEMS TO BE ON THE DECLINE AS WELL HE SAID INCREASED UNEMPLOYMENT DURING THE PERIOD LED TO AN UNPRECEDENTED LEVEL OF ABUSE WITH MANY LAIDOFF WORKERS FILING QUESTIONABLE CLAIMS FOR STRESSRELATED ILLNESSES THE NUMBER OF CLAIMS THAT WERE NOT TRADITIONAL IN NATURE CAUGHT UNICARE BY SURPRISE AND IT WAS FORCED TO PAY MORE BOTH TO WORKERS AND TO LAWYERS AS THE CLAIMS INVOLVED A GREATER FREQUENCY OF LITIGATION ACCORDING TO UNICARE'S 1992 ANNUAL REPORT NOW THE WORK FORCE HAS BASICALLY STABILIZED MR LEATHERBY SAID 9304230196 930423 INTERNATIONAL EBRD CHIEF CONCEDES BANK SPENT TO EXCESS BY JANET GUYON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THE HEAD OF THE EUROPEAN BANK FOR RECONSTRUCTION & DEVELOPMENT CONCEDED THAT THE BANK MADE MISTAKES IN OUTFITTING ITS OPULENT LONDON HEADQUARTERS AND SAID THE BANK WILL STRENGTHEN ITS BUDGETARY PROCESSES JACQUES ATTALI THE BANK'S EMBATTLED PRESIDENT ALSO SAID AT A NEWS CONFERENCE HE HASN'T ANY PLANS TO RESIGN HE SAID HE STILL ENJOYS THE SUPPORT OF MANY OF THE BANK'S SHAREHOLDERS WHICH INCLUDE 54 GOVERNMENTS THE US WITH A 10 STAKE IS ITS LARGEST SHAREHOLDER MR ATTALI WOULDN'T SAY IF TOP MANAGEMENT WOULD BE REORGANIZED SOME DIRECTORS HAVE SUGGESTED THAT MR ATTALI WHO EFFECTIVELY ACTS AS CHAIRMAN CHIEF EXECUTIVE OFFICER AND CHIEF OPERATING OFFICER CEDE SOME POWER TO THE BANK'S SECONDINCOMMAND RONALD FREEMAN A FORMER NEW YORK INVESTMENT BANKER FOR NOW MR ATTALI A FRENCHMAN WHO CREATED THE BANK HAS ALMOST TOTAL CONTROL THE BANK WAS FORMED TO AID EASTERN EUROPE MR ATTALI'S AMBITION IS TO TURN IT INTO A FORUM FOR EUROPEAN POLICY MAKING WITH ISSUES SUCH AS TRADE NUCLEAR SAFETY ENVIRONMENTAL STANDARDS AND AGRICULTURE POLICY BEING REVIEWED AND DISCUSSED UNIQUE TO INTERNATIONAL FINANCIAL INSTITUTIONS THE BANK HAS A POLITICAL MANDATE TO PROMOTE DEMOCRACY AND HUMAN RIGHTS IN THE 25 COUNTRIES IT SERVES MR ATTALI'S ANNOUNCEMENTS YESTERDAY WERE A RESPONSE TO A MEMO DIRECTORS SENT HIM LAST WEEK THAT DEMANDED TIGHTENING OF BUDGET PROCEDURES AFTER A FUROR IN THE BRITISH PRESS OVER THE BANK'S SPENDING IN ITS TWO YEARS OF OPERATION THE TAXPAYERFUNDED INSTITUTION HAS SPENT TWICE AS MUCH ON STAFF OVERHEAD AND ITS HEADQUARTERS AS IT HAS DISBURSED IN CLIENT COUNTRIES THE 750000 12 MILLION THE BANK SPENT TO REPLACE THE MARBLE AT ITS HEADQUARTERS WITH WHITE CARRARA MARBLE HAS BECOME A SYMBOL OF ITS SELFINDULGENCE WITH THE BENEFIT OF HINDSIGHT IT IS CLEAR THAT WE SHOULD HAVE DONE CERTAIN THINGS DIFFERENTLY MR ATTALI SAID THE REPLACEMENT OF SOME OF THE ORIGINAL MARBLE CLEARLY FALLS INTO THIS CATEGORY MR ATTALI SAID THE BANK WILL STRENGTHEN BOARD COMMITTEES ON BUDGETARY MATTERS BOTH IN PREPARING AND MONITORING THE BUDGET GIVE THE BOARD MORE INFORMATION ABOUT THE BANK'S BUDGET HAVE THE BOARD'S AUDIT COMMITTEE REVIEW COSTS AND PROCEDURES IN THE 555 MILLION OUTFITTING OF THE NEW BUILDING 9304230195 930423 FINANCING BUSINESS CHEMICAL BANKING CORP CHEMICAL BANKING CORP NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT IS REVIEWING 8 BILLION OF THIS COMPANY'S DEBT SECURITIES FOR A POSSIBLE RATING UPGRADE MOODY'S SAID THE REVIEW WAS PROMPTED BY IMPROVED PROSPECTS FOR EARNINGS INCREASES AND A CONTINUED STRENGTHENING IN THE CAPITAL BASE RATINGS UNDER REVIEW INCLUDE BAA1 SENIOR DEBT AND BAA2 SUBORDINATED DEBT AS WELL AS LONGTERM RATINGS OF BANK SUBSIDIARIES MOODY'S SAID IT WILL FOCUS ON THE OUTLOOK FOR FURTHER IMPROVEMENT IN EARNINGS DUE TO COST REDUCTIONS FOLLOWING THE MERGER WITH MANUFACTURERS HANOVER CORP AS WELL AS CONTINUED RECOVERY IN THE BANK HOLDING COMPANY'S CORE BUSINESS 9304230194 930423 BUSINESS BRIEF DOW CHEMICAL ITS FUTURE BRIGHTENING REPORTS BETTERTHANEXPECTED EARNINGS DOW CHEMICAL CO REFLECTING A REBOUND IN ITS US CHEMICALS AND PLASTICS BUSINESS AND A GAIN FROM THE SALE OF A JOINT VENTURE INTEREST REPORTED BETTERTHANEXPECTED FIRSTQUARTER NET INCOME THE COMPANY HAD A LOSS IN THE YEAREARLIER QUARTER AFTER AN ACCOUNTING CHANGE THE MIDLAND MICH CHEMICAL CONCERN REPORTED NET OF 400 MILLION OR 147 A SHARE INCLUDING A GAIN OF 272 MILLION OR 1 A SHARE FROM THE SALE OF ITS 50 STAKE IN DOWELL SCHLUMBERGER TO OIL SERVICES FIRM SCHLUMBERGER LTD SALES DIPPED 6 TO 436 BILLION FROM 464 BILLION FRANK POPOFF CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID WE BELIEVE THE INDUSTRY IS NOW AT THE BOTTOM OF THE BUSINESS CYCLE AND SHOULD MOVE UPWARD FROM HERE INDEED DOW'S STOCK AND THE SHARES OF A NUMBER OF OTHER LEADING CHEMICAL COMPANIES ROSE IN ACTIVE TRADING YESTERDAY INVESTORS APPEARED WILLING TO BET THAT THE STEADY IMPROVEMENT IN THE US ECONOMY EVEN THOUGH EUROPEAN SALES REMAIN WEAK MEANS THAT THE WORST IS BEHIND THE HIGHLY CYCLICAL CHEMICAL INDUSTRY IN LATE NEW YORK STOCK EXCHANGE TRADING DOW WAS QUOTED AT 56 UP 3125 SHARES OF MONSANTO CO WHICH REPORTED LOWER FIRSTQUARTER OPERATING EARNINGS EARLIER IN THE WEEK BUT GAVE A RELATIVELY OPTIMISTIC FORECAST FOR SECONDQUARTER SALES GAINED 1125 TO 5525 DU PONT CO AND UNION CARBIDE CORP SHARES ADVANCED AS WELL ON EXPECTATIONS THAT THEY WILL REPORT BETTERTHANEXPECTED FIRSTQUARTER EARNINGS NEXT WEEK DU PONT GAINED 25 CENTS TO CLOSE AT 5175 SHARES OF CARBIDE WHICH SAID ON WEDNESDAY THAT ITS FIRSTQUARTER OPERATING INCOME WOULD EXCEED WALL STREET ESTIMATES AND ROUGHLY EQUAL THE 27 CENTS A SHARE REPORTED A YEAR AGO ROSE 625 CENTS TO CLOSE AT 2025 ON THE BIG BOARD DOW'S FIRSTQUARTER OPERATING NET OF 47 CENTS A SHARE WHILE DOWN 28 FROM A YEAR EARLIER EXCEEDED MANY WALL STREET ESTIMATES BY AS MUCH AS 50 LEONARD BOGNER AN ANALYST WITH PRUDENTIAL SECURITIES INC IN NEW YORK SAID I'M GLAD TO SEE DOW COME BACK FROM THE DEAD HE ESTIMATED THAT DOW COULD EARN 80 CENTS TO 85 CENTS A SHARE IN THE CURRENT QUARTER ON AN OPERATING BASIS AND 260 A SHARE FOR THE YEAR DOW SAID OPERATING INCOME FROM CONSUMER SPECIALTIES FELL 52 TO 162 MILLION IN THE QUARTER MAINLY DUE TO WEAKNESS AT MARION MERRELL DOW INC A DRUG COMPANY THAT IS 71 OWNED BY DOW IN THE 1992 FIRST QUARTER DOW HAD A LOSS OF 589 MILLION OR 217 A SHARE AFTER RESTATEMENT FOR AN ACCOUNTING CHANGE 9304230193 930423 PITNEY BOWES PLANS TO BUY AMERISCRIBE IN A STOCK EXCHANGE BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL STAMFORD CONN PITNEY BOWES INC SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE AMERISCRIBE CORP IN A STOCK SWAP VALUED AT 83 MILLION PITNEY A MAKER OF BUSINESS EQUIPMENT AND SUPPLIES SAID THE MOVE WILL BROADEN THE REACH OF ITS FASTGROWING MAILROOM MANAGEMENT BUSINESS AMERISCRIBE SAID ITS HOLDERS WOULD RECEIVE PITNEY COMMON STOCK VALUED AT ABOUT 1438 FOR EACH AMERISCRIBE SHARE IN LATE NEW YORK STOCK EXCHANGE TRADING AMERISCRIBE WAS QUOTED AT 13125 UP 50 CENTS PITNEY WAS UNCHANGED AT 41 NEW YORKBASED AMERISCRIBE WITH 1992 REVENUE OF 1138 MILLION PROVIDES ONSITE REPROGRAPHICS MAILROOM AND OTHER OFFICE SERVICES TO FIRMS ON A CONTRACT BASIS THE MOVE WILL ADD OVER 200 CONTRACTS TO THE 350 CONTRACTS PITNEY ALREADY HAS IN THE FACILITIES MANAGEMENT BUSINESS PITNEY SAID OUTSOURCING IS THE BUZZWORD FOR THE '90S SAID CAROLE F ST MARK A PITNEY BOWES OFFICIAL OUR MAILING EQUIPMENT CUSTOMERS WERE SAYING COME AND RUN OUR MAILROOMS' THIS ACQUISITION WILL GIVE US GEOGRAPHIC REACH AMERISCRIBE WILL BE MERGED WITH PITNEY BOWES MANAGEMENT SERVICES INC A UNIT WHICH PROVIDES SIMILAR SERVICES PITNEY WOULD NOT DISCLOSE ANNUAL REVENUES OF THE UNIT BUT SAID ITS CONTRACT REVENUE ROSE 20 IN 1992 THE PROPOSED ACQUISITION IS NOT EXPECTED TO DILUTE EARNINGS PITNEY ADDED SEPARATELY PITNEY REPORTED A FIRSTQUARTER PROFIT REVERSING A YEAREARLIER LOSS WHICH MAINLY REFLECTED THE ADOPTION OF A NEW ACCOUNTING RULE FOR NONPENSION BENEFITS FOR RETIREES PITNEY POSTED NET INCOME OF 821 MILLION OR 52 CENTS A SHARE COMPARED WITH A LOSS OF 1474 MILLION OR 92 CENTS A SHARE IN THE YEAREARLIER QUARTER THE CHARGE IN THE 1992 FIRST QUARTER WAS 2146 MILLION OR 135 A SHARE AND 1992 FIGURES WERE RESTATED TO REFLECT A 2FOR1 STOCK SPLIT EACH OF PITNEY'S BUSINESSES RECORDED HIGHER OPERATING PROFIT MARGINS AND ITS MAILING EQUIPMENT AND SYSTEMS OPERATIONS GREW AT A DOUBLEDIGIT RATE CHAIRMAN GEORGE B HARVEY SAID SALES ROSE 27 TO 8334 MILLION FROM 8115 MILLION BUT NONUS BUSINESSES CONTINUED TO BE HURT BY CURRENCY FLUCTUATIONS AND PERSISTENTLY WEAK ECONOMIES IN SEVERAL OF PITNEY'S KEY OVERSEAS MARKETS THE COMPANY HAS SAID IT PLANS TO STOP LEASING NONPITNEY PRODUCTS OVERSEAS AND USE THOSE RESOURCES FOR US OPERATIONS 9304230192 930423 BANK OF BOSTON POSTS A 19 EARNINGS GAIN FOR THE FIRST QUARTER BOSTON BANK OF BOSTON CORP COMING OFF ITS FIRST PROFITABLE YEAR SINCE 1989 POSTED A 19 RISE IN FIRSTQUARTER NET INCOME OVER THE YEARAGO QUARTER AND TRIMMED SOURED ASSETS BY 23 IN THE QUARTER THE BANK HOLDING COMPANY WITH 316 BILLION IN ASSETS REPORTED NET INCOME OF 674 MILLION OR 70 CENTS A SHARE WHICH INCLUDED TWO ACCOUNTING CHANGES THAT RESULTED IN ADDITIONAL REPORTED EARNINGS OF 172 MILLION NET INCOME IN 1992'S FIRST QUARTER WAS 568 MILLION OR 71 CENTS A SHARE WHICH INCLUDED A CREDIT OF 175 MILLION FOR TAXLOSS CARRYFORWARDS THE OFFSETTING ITEMS IN 1993'S FIRST QUARTER WERE A CHARGE OF 53 MILLION FOR CHANGES IN ACCOUNTING FOR MORTGAGE SERVICE RIGHTS AND A 702 MILLION CREDIT FOR CHANGES IN ACCOUNTING FOR INCOME TAXES WE ENTERED THE YEAR GREATLY ENCOURAGED BY OUR SUCCESSFUL TURNAROUND AND THE RESULTS OF OUR FIRST QUARTER DEMONSTRATE CONTINUED PROGRESS SAID IRA STEPANIAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR STEPANIAN ADDED THAT HE WAS HEARTENED BY THE CONFIDENCE ACCORDED US BY THE REGULATORS CITING THE TERMINATION IN MARCH OF REGULATORY AGREEMENTS STRUCK IN 1989 THE BANK HAS MADE THREE STOCK OFFERINGS SINCE EARLY 1992 WHICH BOOSTED THE NUMBER OF COMMON SHARES OUTSTANDING BY ABOUT EIGHT MILLION OVER THE PAST YEAR TO 85 MILLION BANK OF BOSTON WHICH HAD SOURED ASSETS OF NEARLY 2 BILLION AS RECENTLY AS EARLY 1992 CONTINUES TO BE THE MOST SUCCESSFUL LARGE BANK IN NEW ENGLAND AT SHRINKING NONPERFORMING ASSETS THE BANK'S TOTAL OF NONPERFORMERS INCLUDING RESTRUCTURED LOANS WAS 843 MILLION IN THE FIRST QUARTER A DECLINE OF 252 MILLION FROM A TOTAL OF 11 BILLION AT YEAR END NET CREDIT LOSSES WERE 60 MILLION IN THE FIRST QUARTER COMPARED WITH 53 MILLION IN THE PRIOR QUARTER DUE TO A LOWER RATE OF RECOVERIES THE BANK'S NET INTEREST MARGIN ROUGHLY THE SPAN BETWEEN ITS COST OF FUNDS AND WHAT IT CHARGES CUSTOMERS WAS 422 PERCENTAGE POINTS FOR THE QUARTER COMPARED WITH 413 IN THE FOURTH QUARTER OF 1992 AND 357 IN 1992'S FIRST QUARTER THE INCREASE IN THE FIRST QUARTER RESULTED FROM GROWTH IN THE OVERSEAS NET INTEREST MARGIN AS OPPOSED TO THE DOMESTIC MARGIN WHICH SHRANK SLIGHTLY 9304230191 930423 TECHNOLOGY REDUCING CAESAREAN BIRTHS WOULD SAVE US 1 BILLION ATLANTA REDUCING THE RATE OF CAESAREAN DELIVERIES IN THE US BY ABOUT ONETHIRD COULD REDUCE THE NATION'S ANNUAL MEDICAL BILL BY MORE THAN 1 BILLION ACCORDING TO A NEW FEDERAL REPORT ALMOST ONE MILLION OF THE FOUR MILLION BIRTHS ANNUALLY IN THE US INVOLVE CAESAREAN SECTIONS ACCORDING TO A STUDY TO BE RELEASED TODAY BY THE CENTERS FOR DISEASE CONTROL AND PREVENTION ONLY BRAZIL AND PUERTO RICO AMONG 21 COUNTRIES REPORTING HAD HIGHER RATES WHILE THE PERCENTAGE OF CAESAREAN DELIVERIES IN THE US HAS REMAINED STABLE SINCE 1986 THE EXTENDED HOSPITAL STAYS LINKED TO THE PROCEDURE ARE CONTRIBUTING TO THE SIZABLE INCREASES EACH YEAR IN THE NATION'S MEDICAL BILL IN 1991 ACCORDING TO THE CDC THE AVERAGE COSTS FOR CAESAREAN AND VAGINAL DELIVERIES WERE 7826 AND 4720 RESPECTIVELY PHYSICIAN FEES ACCOUNTED FOR 611 OF THE ADDITIONAL COST IN THE FORMER PROCEDURE AND HOSPITAL CHARGES ACCOUNTED FOR 2495 OF THE PREMIUM LOWERING THE RATE OF CAESAREAN SECTIONS TO 15 FOR EVERY 100 DELIVERIES AN OBJECTIVE OF THE DEPARTMENT OF HEALTH AND HUMAN SERVICES BY THE YEAR 2000 COULD PRODUCE ANNUAL SAVINGS OF MORE THAN 1 BILLION IN PHYSICIAN AND HOSPITAL CHARGES ACCORDING TO THE CDC 9304230190 930423 MOODY'S LOWERS RATINGS ON UNITED TECHNOLOGIES DEBT BY ROBERT J BRENNAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MOODY'S INVESTORS SERVICE INC LOWERED ITS RATINGS ON UNITED TECHNOLOGIES CORP'S LONGTERM DEBT REFLECTING THE COMPANY'S EXPOSURE TO THE SHRINKING AIRLINE AND DEFENSE INDUSTRIES MOODY'S ACTION FOLLOWS UNITED TECHNOLOGIES' REPORT OF WORSETHANEXPECTED EARNINGS FOR THE FIRST QUARTER ATTRIBUTABLE LARGELY TO SHARPLY LOWER EARNINGS AT ITS PRATT & WHITNEY JETENGINE UNIT THE COMPANY CITED THE CATASTROPHIC CONDITION OF THE AIRLINE INDUSTRY AND ITS EFFECT ON THE JETENGINE BUSINESS THE DOWNGRADE IS ALSO BASED ON UNITED TECHNOLOGIES' NEED TO REALIGN ITS PRODUCTION CAPACITY BECAUSE OF EXPECTED LOWER DEMAND FROM AEROSPACE AND DEFENSE CUSTOMERS AND TO REDUCE ITS HIGH COST STRUCTURE MOODY'S SAID UNITED TECHNOLOGIES BASED IN HARTFORD CONN PRODUCES AEROSPACE AND DEFENSE EQUIPMENT INCLUDING JET ENGINES AND HELICOPTERS ABOUT 23 BILLION OF DEBT IS AFFECTED THE RATING ON THE LONGTERM DEBT WAS LOWERED TO SINGLEA2 FROM SINGLEA1 THE RATING FOR SHELF REGISTRATIONS ALSO WAS LOWERED TO PRELIMINARY SINGLEA2 FROM PRELIMINARY SINGLEA1 UNITED TECHNOLOGIES' PRIME1 RATING FOR COMMERCIAL PAPER WAS AFFIRMED A UNITED TECHNOLOGIES SPOKESMAN SAID THAT OBVIOUSLY WE ARE DISAPPOINTED BUT NOT SURPRISED BY MOODY'S ACTION ESPECIALLY GIVEN THEIR CONCERN OVER THE POOR HEALTH OF THE AIRLINE INDUSTRY NEVERTHELESS HE SAID UNITED TECHNOLOGIES CONTINUES TO BE A VERY STRONG COMPANY FINANCIALLY AND WE BELIEVE THAT THE ACTION WILL HAVE NO MATERIAL EFFECT ON ITS FINANCIAL CONDITION MOODY'S PUT UNITED TECHNOLOGIES' DEBT UNDER REVIEW IN JANUARY YESTERDAY IT SAID IT EXPECTS THE JET ENGINES MARKET FOR BOTH NEW MILITARY AND COMMERCIAL AIRCRAFT WILL CONTINUE TO DECLINE AT LEAST THROUGH 1994 THE COMPANY'S LUCRATIVE COMMERCIAL AFTERMARKET JETENGINES BUSINESS ALSO HAS BEEN DEPRESSED BASED ON THE AIRLINE INDUSTRY'S PERFORMANCE AND TRAFFIC OUTLOOK NO SIGNIFICANT INTERMEDIATETERM RECOVERY IN UNITED TECHNOLOGIES' ORDER BOOK IS ANTICIPATED MOODY'S EXPECTS THE COMPANY'S DEFENSERELATED BUSINESS TO CONTINUE FEELING THE PRESSURES OF DECLINING DEFENSE BUDGETS WORLDWIDE ITS COMMERCIAL BUSINESSES HOWEVER WILL BE HEALTHIER OVER TIME ALBEIT THEIR GROWTH PROSPECTS WILL BE TEMPERED BY THE EXPECTED SLOWER GROWTH ENVIRONMENT GIVEN SUCH A BUSINESS ENVIRONMENT AND THE NEED FOR UNITED TECHNOLOGIES TO FURTHER ADJUST ITS PRODUCTION CAPACITY AND COST STRUCTURE IT WILL BE DIFFICULT TO SIGNIFICANTLY STRENGTHEN ITS CASH FLOW AND PROFITABILITY OVER THE INTERMEDIATE TERM MOODY'S SAID LONGER TERM HOWEVER THE COMPANY SHOULD SEE BENEFITS FROM RESTRUCTURING COSTCUTTING AND ASSETMANAGEMENT PROGRAMS MOODY'S SAID 9304230189 930423 IT'S LIKE BEING INSIDE A TV TUBE WHEN THE SET IS TUNED TO MTV BY MILTON G ALLIMADI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NIGHT OWLS CAN HAVE A HOOT TIME IN THE OLD TOWN TOMORROW NIGHT THE RITZ NIGHTCLUB IS OFFERING TO KEEP THEM WIDEEYED WITH AN 11HOUR OMNISENSORIAL SWEEPOUT THE FUTURISTIC EXTRAVAGANZA WHICH STARTS AT 1001 PM EDT WILL FEATURE THREE DANCE FLOORS 77 MUSICIANS VIBRATING PLATFORMS THE HIGHEST INDOOR STROBE WATERFALL A FLYING HUMAN AND A VARIETY OF OTHER ATTRACTIONS FOR 15 IF YOU GRABBED SOMEONE FROM THE COUNTRY AND PUT HIM IN NEW YORK'S SUBWAY SYSTEM IT WOULD BE LIKE GOING TO ANOTHER PLANET THAT'S BASICALLY WHAT WE ARE TRYING TO ACHIEVE SAYS MARIANO AIRALDI WHOSE LALALANDIA ENTERTAINMENT RESEARCH CORP IS ORGANIZING THE EVENT ATTENDANCE LIMITED TO 2500 WE IMAGINE THIS IS HOW THE STREETS WILL BE IN THE YEAR 2077 THE IDEA IS TO CREATE SO MUCH CONFUSION THAT PEOPLE WON'T BE ABLE TO HEAR ONE ANOTHER WILL LOSE THEIR IDENTITY AND RELY ON BODY LANGUAGE INSTEAD SAYS MR AIRALDI PEOPLE BECOME MORE HUMAN ONCE THEY LOSE THEIR IDENTITY IT'S A REGRESSION IN A SENSE WE CALL IT SENSORIA A SCUBA DIVER WILL ASSIST BY SWIMMING IN A MIDFLOOR AQUARIUM FOR AN HOUR HE'LL THEN EMERGE AND FLY ACROSS THE ROOM I CAN'T TELL YOU HOW HE'LL FLY HE'LL JUST FLY ONCE BECAUSE IT'S A BIT TOO MUCH SAYS ALEJANDRA GIUDICI ANOTHER LALALANDIAN WHO IS MARRIED TO MR AIRALDI THOSE WHO SNIFF AT THE FLYING SCUBA DIVER CAN TRY 11 BRAIN CAPSULES ENCLOSED CONICAL DEVICES THAT WILL BE FILLED BY SMELL MACHINES A MIX OF SMELLS MR AIRALDI EXPLAINS DECLINING TO BE MORE SPECIFIC MUSIC INCLUDES TECHNOCRATIC TUNES A MIX OF HEAVY METAL SOUNDS FROM NATURE AND 67 DIFFERENT LAYERS OF MIXED MUSIC A HYDRAULIC SYSTEM WILL ELEVATE PATRONS TO AN INTELLIBAR THAT WILL SERVE ONLY NONALCOHOLIC DRINKS CREATED FROM HERBS AND OTHER LEGAL STIMULANTS AND FOR THOSE WHO FEEL A TAD DISORIENTED THERE ARE 160 WALLMOUNTED TV SETS ON WHICH GUESTS CAN MONITOR THEIR OWN CONFUSION MICHAEL MUSTO VILLAGE VOICE NIGHTLIFE COLUMNIST HASN'T TRIED A SWEEPOUT BUT FINDS THE DESCRIPTION APPEALING MORE AND MORE CLUBS ASSAULT YOU WITH MORE STIMULI HE SAYS IT'S PROBABLY NOT HARMFUL IF YOU DON'T DO IT EVERY NIGHT THE SWEEPOUT IS JUST FINE WITH CHARLES PINCHINAT AN ATTENDANT AT THE GARAGE NEXT DOOR TO THE RITZ HE SAYS IF THEY GET 2000 PEOPLE WE CAN HAVE ABOUT 200 CARS OR MORE AT 12 EACH 9304230188 930423 POLITICS & POLICY SOME MARCHERS IN SUITS MAY CONSIDER FETISHISTS AND MALE NUNS' A REAL DRAG BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL ALTHOUGH IT'S POLITICALLY INCORRECT TO EVEN THINK IT WHEN GAY MEN AND LESBIANS DESCEND ON THE CAPITAL THIS SUNDAY FOR THE 1993 MARCH ON WASHINGTON FOR LESBIAN GAY AND BI EQUAL RIGHTS AND LIBERATION AT LEAST SOME ORGANIZERS WOULD LIKE NOTHING MORE THAN TO SEE ONE MILLION ARMANISUITED MEN AND ANNE KLEINSKIRTED WOMEN WHAT THEY'LL GET BESIDES TRADITIONAL GARB IS THE LIKES OF SISTER VICIOUS A MAN IN A NUN'S HABIT WITH A THREEFOOTWIDE HALO AND FISHNET STOCKINGS AS FOUNDER OF A SAN FRANCISCAN ORDER OF DRAG PERFORMERS CALLED THE SISTERS OF PERPETUAL INDULGENCE SISTER VICIOUS A K A KEN BUNCH IS FURIOUS THAT ORGANIZERS HAVEN'T INCLUDED IN THE MARCH'S TITLE THE WORD TRANSGENDER A POLITICALLY CORRECT CATCHALL FOR CROSSDRESSERS AND PEOPLE WHO HAVE HAD SEXCHANGE OPERATIONS MR BUNCH TALKS OF STAGING A DRAGQUEEN DIEIN TO BLOCK THE MARCH OR MAYBE HAVING TRANSGENDERS CARRY THEIR OWN BANNER IN FRONT OF THE PROCESSION WHEN OUR LESBIAN AND GAY LEADERS CALL FOR UNITY QUITE OFTEN IT'S REALLY A CALL FOR CONFORMITY SAYS MR BUNCH HE AND MANY OTHER COLORFUL MEMBERS OF THE GAY COMMUNITY SAY THE MOVEMENT IS RELEGATING THEM TO CRAZYUNCLE STATUS IN AN EFFORT TO CONVINCE MAINSTREAM AMERICA THAT HOMOSEXUALS ARE AS STRAIGHT AS HETEROSEXUALS IT'S AN IRONIC TWIST GIVEN THAT TRANSVESTITES STARTED THE GAYRIGHTS MOVEMENT 24 YEARS AGO WITH RIOTS TO PROTEST POLICE RAIDS ON A GAY BAR IN NEW YORK'S GREENWICH VILLAGE MARCH ORGANIZERS HAVE GRAND DREAMS OF THEIR EVENT DOING FOR HOMOSEXUALS WHAT MARTIN LUTHER KING'S MARCH DID FOR BLACKS 30 YEARS AGO THE JOB OF THE CONSTITUTION ISN'T TO GRUDGINGLY GRANT ME RIGHTS IF I CAN'T BECOME A STRAIGHT WHITE MAN SAYS PAT HUSSAIN WHO IS ON THE MARCH'S EXECUTIVE COMMITTEE THOUGH THE DATE WAS SET TWO YEARS AGO THE TIMING COULDN'T HAVE BEEN MORE PERFECT GIVEN THE HOMOSEXUALSINTHEMILITARY DEBATE AMONG THE SEVERAL HUNDRED PREMARCH EVENTS HOMOSEXUALS WILL LOBBY THEIR CONGRESSMEN AND ACT UP THE RADICAL AIDS PROTEST GROUP WILL STAGE A HANDS AROUND THE CAPITOL DEMONSTRATION BUT UNLIKE OTHER BIG MARCHES FOR ABORTION AND CIVIL RIGHTS THIS ONE AKIN TO MOST GAYPRIDE FESTIVALS WILL BE PART DEMONSTRATION PART MARDI GRAS AND THAT HAS PUT THE MARCH'S MORE SERIOUSMINDED ORGANIZERS ON THE DEFENSIVE DRAG QUEENS ARE PART OF OUR COMMUNITY BUT THEY DON'T DEFINE OUR COMMUNITY SAYS NADINE SMITH COCHAIRWOMAN OF THE MARCH WE ALSO HAVE GAY LIBRARIANS GAY PILOTS AND GAY ATHLETES NOT TO MENTION THE NATIONAL BEAR GATHERING OF HEFTY HIRSUTE MEN THE GAY SPIRIT MEDITATION THE S/M LEATHER FETISH KICKOFF PARTY THE GAY HOEDOWN '93 THE BIBLICAL SELFDEFENSE WORKSHOP AND THE DRAG SHOW ON THE MALL MARCH LEADERS LIKE TO CALL THIS DIVERSITY BUT SUCH DIVERSITY MAY WELL STARTLE MAINSTREAM AMERICA AND THAT HAS PUT THE MOVEMENT'S LEADERS IN A PCBIND HOW TO CONVINCE THE COUNTRY THAT MOST GAY PEOPLE AREN'T DRAG QUEENS AND LEATHERMEN WITHOUT SENDING THOSE GROUPS INTO A SNIT YET EVEN THE MARCH'S OFFICIAL TITLE HAS BEEN NEUTERED IT PURPOSELY OMITS THE SEXUAL FROM BISEXUAL FOR FEAR THE EVENT WILL BE PERCEIVED NEGATIVELY WHAT WE'RE TRYING TO DO IS WORK WITH THE MAINSTREAM PRESS TO DEMAND THEY REPORT ON THE RICH DIVERSITY OF THE MARCH NOT JUST THE SENSATIONAL ASPECTS SAYS ROBERT BRAY SPOKESMAN FOR THE NATIONAL GAY AND LESBIAN TASK FORCE HE ADDS SOMEWHAT WEAKLY WE LOVE OUR DRAG QUEENS TO TRY TO ENSURE THAT THE MEDIA FOCUS ON GAY AND LESBIAN SOLDIERS DOCTORS POLITICIANS AND SCORES OF COUPLES EXCHANGING COMMITMENT VOWS THERE HAS BEEN SOME RESHUFFLING OF THE ORDER OF MARCH RATHER THAN HAVE THE HARLEYDAVIDSONRIDING DYKES ON BIKES AT THE FRONT AS IS CUSTOMARY IN MANY GAY PRIDE PARADES AROUND THE COUNTRY THE LESBIAN MOTORCYCLE GROUP WILL BRING UP THE REAR BEHIND THE NATIONAL BEAR CONTINGENT I SUPPOSE THERE'S A CERTAIN AURA OF POLITICAL INCORRECTNESS ABOUT BEARS SAYS JOHN RUNYAN OF SEATTLE WHO HAS ORGANIZED THAT GATHERING SO OLDER HEAVIER HAIRIER WORKINGCLASS MEN FROM AROUND THE COUNTRY COULD MEET I'VE KIND OF WONDERED WHETHER ACT UP WILL SHOW UP AND DO A DEMONSTRATION AGAINST US DAVID TURNER A WASHINGTON LEGISLATIVE RESEARCHER WHO ATTENDED ONE OF THIS YEAR'S INAUGURAL BALLS AS MS LIBERTY SAYS MARCH ORGANIZERS TRIED TO PUSH BACK THE STARTING TIME FOR HIS DRAG EXTRAVAGANZA NEAR THE WASHINGTON MONUMENT FROM NOON UNTIL 8 PM TOMORROW WHEN IT'S DARK AND ALL THE TOURISTS HAVE GONE HOME HE SAYS THEY FINALLY COMPROMISED ON A 3 PM START DRAG QUEENS AND TRANSSEXUALS HAVE BEEN A THORN IN THE SIDE OF MORE STRAIGHTLACED MARCH ORGANIZERS SINCE EARLY LAST YEAR WHEN THEY TRIED TO GET THEIR NAME INTO THE TITLE AT ONE ORGANIZING MEETING ONE MAN GOT SO MAD HE KICKED OVER A CHAIR SAYS PRINCESS DOROTHYCHRISTINE LA ROUGE A 45YEAROLD SEATTLE TRANSSEXUAL HOUSEWIFE AND MARCH REPRESENTATIVE AFTER GETTING A QUORUM BALANCED BY GENDER PARITY AND RACIAL PARITY ORGANIZERS ULTIMATELY VOTED TO INCLUDE TRANSGENDER CONCERNS IN THE MARCH'S MISSION STATEMENTS BUT NOT IN THE NAME THERE ARE A LOT OF SERIOUS BUNNIES OUT THERE WHO WANT TO MAKE IT REALLY HEAVY AND STUFF AND IT'S UNFORTUNATE THAT THEY WANT TO PAINT THE TRANSGENDER COMMUNITY AS NOT SERIOUS AND NOT IMPORTANT SAYS NEWLY HOT SINGER RUPAUL THE BLONDWIGGED AFRICANAMERICAN DRAG QUEEN WHO WILL PERFORM HIS DANCECLUB HIT SUPERMODEL AT THE MARCH I SAY A WIG IS WORTH A THOUSAND WORDS IT'S A POLITICAL STATEMENT IN ITSELF PERHAPS SURPRISINGLY THE BATTLE ROYAL WITHIN THE GAY COMMUNITY COMES JUST AS CROSSDRESSING HAS CROSSED OVER RUPAUL IS AN MTV MAINSTAY THE OSCARNOMINATED THE CRYING GAME FEATURES A TRANSVESTITE CHARACTER AND THE GAP STORE CHAIN IS USING THE LIPSYNCHING JOAN CRAWFORD LOOKALIKE LYPSINKA AS ONE OF ITS CELEBRITY AD MODELS THE ROCK GROUP RED HOT CHILI PEPPERS HAS MADE KILTS A FASHIONSTATEMENT FOR THE HIPSTERS AND DESIGNER DONNA KARAN IS PUSHING SKIRTLIKE SARONGS FOR MEN BARRY DOUGLAS COORDINATOR OF THIS WEEKEND'S S/MLEATHERFETISH CONFERENCE IS KEENLY AWARE OF THE PUBLICRELATIONS PROBLEMS THE LEATHERMEN PRESENT IT'S ALWAYS A VERY DIFFICULT QUESTION IN OUR COMMUNITY HOW DO WE BEHAVE AT GAYPRIDE PARADES BUT HE THINKS BUTTONDOWN HOMOSEXUALS SHOULD LIGHTEN UP AND REMEMBER WHAT THEY'RE FIGHTING ABOUT I DON'T THINK ANYONE SERIOUSLY BELIEVES THAT GAYS AND LESBIANS ARE OPPRESSED BECAUSE STRAIGHTS DON'T LIKE WHAT WE WEAR NOR DOES HE SEE LEATHERMEN AND DRAG QUEENS AS SELFINDULGENT DEMANDING CONFORMITY IN A SEXUAL LIBERATION MOVEMENT IS OBVIOUSLY A HYPOCRISY THAT CAN'T STAND THE MARCH'S MS SMITH INSISTS SHE ISN'T ATTEMPTING TO IMPOSE A DRESS CODE OR ANYTHING LIKE THAT BUT SHE DOES CONCEDE THAT ORGANIZERS WANT TO SHIFT ATTENTION AWAY FROM FEATHER BOAS AND LEATHER CHAPS SUCH IMAGES HAVE BECOME LIABILITIES TO THE GAYRIGHTS CAUSE ESPECIALLY AS OPPOSITION GROUPS USE THEM TO STEREOTYPE HOMOSEXUALS DURING THE CURRENT GAYSINTHEMILITARY DEBATE MANY HOMOSEXUALS AT THE MARCH WILL TRY TO PRESENT THEIR OWN VERSION OF FAMILY VALUES LESBIAN MARKETING EXECUTIVE R CHRISTINE HERSHEY AND HER PARTNER COMMERCIAL PHOTOGRAPHER SUSAN VAN HORN ARE COMING FROM LOS ANGELES WITH THEIR 3 1/2YEAROLD ADOPTED SON WE'RE TRYING TO SHOW THAT THERE ARE PROFESSIONAL WOMEN AND MOMS INVOLVED IN THE MOVEMENT MS HERSHEY SAYS FIVE YEARS AGO THE MOVEMENT HAD TO PUSH SEX IN THE FACE OF THE MEDIA JUST TO GET THEIR ATTENTION SAYS HOWARD BRAGMAN PRESIDENT OF A BEVERLY HILLS CALIF PUBLICRELATIONS FIRM THAT REPRESENTS MANY GAY CAUSES NOW AT GAY PRIDE FESTIVALS I'M ALWAYS TEMPTED TO TAKE REPORTERS TO THE KITCHENCABINETREFACING BOOTH TO SHOW THEM GAYS AND LESBIANS CAN BE AS BORING AS THE REST OF THE WORLD 9304230187 930423 POLITICS & POLICY CLINTON NEWS CONFERENCE IS SCHEDULED FOR TODAY WASHINGTON PRESIDENT CLINTON WILL HOLD HIS SECOND FORMAL NEWS CONFERENCE TODAY AT 1 PM EDT THE EVENT COMES AS MR CLINTON NEARS HIS 100TH DAY IN OFFICE THE POINT AT WHICH THE MEDIA TRADITIONALLY LOOK BACK AND ASSESS A NEW PRESIDENT'S PERFORMANCE MR CLINTON'S AIDES ARE WORRIED THAT THE ASSESSMENT MIGHT BE HARSH IN JUST THE PAST WEEK THE STANDOFF IN WACO TEXAS ENDED IN DISASTER AND THE PRESIDENT'S ECONOMICSTIMULUS BILL DIED IN THE SENATE TOUGH DECISIONS AND LEGISLATIVE FIGHTS LIE AHEAD ESPECIALLY OVER THE PRESIDENT'S SOONTOBEUNVEILED HEALTHCARE OVERHAUL PLAN AND HIS PROPOSAL TO CHANGE THE CAMPAIGN FINANCE SYSTEM THE NEWS CONFERENCE WILL TAKE PLACE IN THE EAST ROOM OF THE WHITE HOUSE 9304230186 930423 WHO'S NEWS JC PENNEY CO JC PENNEY CO PLANO TEXAS JOHN FESPERMAN 47 YEARS OLD WAS ELECTED A VICE PRESIDENT OF THIS RETAILER HE HAS BEEN DIRECTOR OF INSURANCE 9304230185 930423 TEXACO SUN AND OCCIDENTAL POST PROFITS FOR 1ST PERIOD AFTER YEAREARLIER LOSSES BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL TEXACO INC SUN CO AND OCCIDENTAL PETROLEUM CORP RECORDED PROFITS IN THE FIRST QUARTER COMPARED WITH YEAREARLIER LOSSES BECAUSE OF COSTCUTTING AND SOME BETTER INDUSTRY CONDITIONS BEYOND THE COST REDUCTIONS THE RECOVERING NATURAL GAS MARKET IN THE US AND A MODEST RISE IN WORLDWIDE OIL PRICES FROM 1992'S FIRST QUARTER BOOSTED PROFITS FOR TEXACO AND OCCIDENTAL TEXACO ALSO BENEFITED FROM HIGHER REFINING AND MARKETING MARGINS IN LATIN AMERICA AND ASIA OCCIDENTAL'S CHEMICAL EARNINGS SURGED DESPITE A CONTINUED PETROCHEMICAL SLUMP EVEN THOUGH THE EARNINGS IMPROVEMENTS COME AGAINST DEPRESSED RESULTS IN THE 1992 FIRST QUARTER INVESTORS' INTEREST HAS BEEN HEAVY IN OIL COMPANY STOCKS AND THEY WARMLY GREETED YESTERDAY'S NEWS THE MAJOR OIL COMPANY INDUSTRY GROUP OF THE DOW JONES EQUITY MARKET INDEX HAS CLIMBED MORE THAN 10 THIS YEAR BY COMPARISON THE STANDARD & POOR'S 500 STOCK INDEX IS UP LESS THAN 2 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING TEXACO SHARES ROSE 75 CENTS TO 63625 SUN ADVANCED 625 CENTS TO 24 AND OCCIDENTAL ROSE 375 CENTS TO 2250 TEXACO BASED IN WHITE PLAINS NY SAID NET INCOME IN THE QUARTER WAS 278 MILLION OR 97 CENTS A SHARE THE COMPANY RESTATED RESULTS FOR THE 1992 QUARTER TO REFLECT ACCOUNTING CHANGES THAT RESULTED IN A 300 MILLION CHARGE OR 116 A SHARE TEXACO SAID IT HAD A NET LOSS OF 68 MILLION OR 36 CENTS A SHARE FOR THE PERIOD REVENUE DROPPED TO 852 BILLION FROM 856 BILLION STRIPPING AWAY THE CHARGE TEXACO'S OPERATING PROFIT ROSE 20 ALFRED DECRANE CHAIRMAN SAID DURING THIS PERIOD OF CONTINUING WEAK DEMAND FOR PETROLEUM PRODUCTS CAUSED BY THE SLUGGISHNESS IN MANY OF THE WORLD'S ECONOMIES TEXACO HAS BEEN ABLE TO CONTAIN ITS COSTS AND EXPENSES AND MAINTAIN ITS OPERATIONAL COMPETITIVENESS THROUGH IMPROVEMENTS IN BUSINESS PROCESSES TEXACO SAID ITS DOMESTIC REFINING AND MARKETING EARNINGS SANK 32 TO 53 MILLION BECAUSE OF DEPRESSED REFINERY MARGINS ON THE EAST COAST AND GULF COAST SUN IN THE MIDST OF A MAJOR OVERHAUL THAT FOCUSES THE COMPANY MORE ON DOMESTIC REFINING AND MARKETING SHOWED IMPROVEMENT DESPITE THE WEAK MARGINS SUN POSTED FIRSTQUARTER NET INCOME OF 40 MILLION OR 37 CENTS A SHARE INCLUDING A 5 MILLION GAIN FROM ACCOUNTING CHANGES COMPARED WITH A LOSS A YEAR EARLIER OF 282 MILLION OR 266 A SHARE SUN RESTATED 1992 FIRSTQUARTER RESULTS TO INCLUDE A 261 MILLION CHARGE FOR ACCOUNTING CHANGES AN 8 MILLION LOSS FOR THE SALE OF STOCK AND 7 MILLION OF PROFIT FROM ITS COAL OPERATIONS NOW CARRIED ON THE BOOKS AS A DISCONTINUED OPERATION IN THE QUARTER SUN AGREED TO SELL ITS CORDERO MINING CO FOR 1205 MILLION AND THE SALE IS EXPECTED TO CLOSE THIS QUARTER REVENUE FELL 53 TO 23 BILLION FROM 243 BILLION PHILADELPHIABASED SUN SAID ITS DOMESTIC FUELS BUSINESS NARROWED ITS LOSS TO 12 MILLION FROM 28 MILLION SUN HAS GIVEN UP EXPLORING FOR OIL AND GAS INTERNATIONALLY BUT ITS OVERSEAS PRODUCTION OPERATIONS RECORDED A PROFIT OF 25 MILLION COMPARED WITH BREAKEVEN RESULTS A YEAR EARLIER OCCIDENTAL AN INDUSTRY HYBRID BECAUSE IT LACKS GASOLINE REFINING AND MARKETING OPERATIONS HAD NET OF 80 MILLION OR 25 CENTS A SHARE INCLUDING A 3 MILLION CHARGE TO RETIRE DEBT EARLY COMPARED WITH A LOSS OF 137 MILLION OR 46 CENTS A SHARE OCCIDENTAL BASED IN LOS ANGELES ALSO RESTATED 1992 RESULTS TO INCLUDE A 93 MILLION CHARGE FOR ACCOUNTING CHANGES REVENUE ROSE 76 TO 217 BILLION FROM 202 BILLION 9304230184 930423 WHO'S NEWS IMATRON INC IMATRON INC SOUTH SAN FRANCISCO CALIF RODNEY DERBYSHIRE 58 YEARS OLD RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS MAKER OF MEDICAL IMAGING EQUIPMENT TO PURSUE OTHER INTERESTS ACCORDING TO THE COMPANY HE WILL REMAIN A CONSULTANT TO THE COMPANY FOR SIX MONTHS DOUGLAS BOYD CHAIRMAN WILL SERVE AS INTERIM CHIEF EXECUTIVE OFFICER UNTIL A PERMANENT SUCCESSOR IS FOUND 9304230183 930423 INTERNATIONAL LONDON MULLS TRADING SYSTEM WITH NASDAQ BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON LONDON'S STOCK EXCHANGE IS CONSIDERING DEVELOPING A NEW TRADING AND MARKETMAKING SYSTEM WITH NASDAQ THE US OVERTHECOUNTER SHARE TRADING SYSTEM THE LONDON EXCHANGE ALSO SAID IT WOULD REDUCE FEES FOR THE SETTLEMENT OF TRADES AND CONFIRMED THAT IT HAD ENTERED INTO AN AGREEMENT WITH ICV LTD AND TELEKURS AG TO RUN THE EXCHANGE'S TOPIC NEWS AND SHAREPRICE INFORMATION SERVICE THE STATEMENTS CAME AFTER THE STOCK EXCHANGE'S FIRST BOARD MEETING SINCE THE JUNKING LAST MONTH OF ITS TAURUS COMPUTERIZED SHARESETTLEMENT SYSTEM PROJECT WHICH COST 500 MILLION 7785 MILLION TO DEVELOP AND THE SUBSEQUENT RESIGNATION OF ITS CHIEF EXECUTIVE PETER RAWLINS PEOPLE WHO ATTENDED THE MEETING SAID THERE WAS AGREEMENT THAT THE EXCHANGE WOULD SEEK TO DEVELOP A NEW TRADING SYSTEM AS CHEAPLY AS POSSIBLE USING TECHNOLOGY AVAILABLE AT OTHER EXCHANGES THOUGH SYSTEMS IN AUSTRALIA FRANCE AND SPAIN HAVE BEEN CONSIDERED ONLY NASDAQ WAS MENTIONED AT YESTERDAY'S MEETING THOSE PRESENT SAID SIR ANDREW HUGH SMITH CHAIRMAN AND ACTING CHIEF EXECUTIVE SAID THE LSE BELIEVES THAT PARTS OF THE PROPOSED NASDAQ SYSTEM MIGHT HAVE A ROLE TO PLAY IN OUR PLANS FOR REARRANGING OUR TRADING AND MARKET SYSTEM THE EXCHANGE EXPECTS TO DECIDE ON THE NATURE OF ITS COOPERATION WITH NASDAQ WITHIN SIX WEEKS NASDAQ THE AUTOMATED QUOTATION SERVICE OF THE NATIONAL ASSOCIATION OF SECURITIES DEALERS IN THE US IS CURRENTLY REVAMPING ITS COMPUTER SYSTEM TO ALLOW USERS TO CUSTOMDESIGN THEIR TRADING SCREENS USING MICROSOFT CORP'S WINDOWS SOFTWARE A SPOKESMAN SAID NASDAQ WOULD BE DELIGHTED TO ENTER INTO FORMAL TALKS WITH THE LSE HE NOTED THAT NASDAQ IS ALREADY WORKING WITH CHINESE EXCHANGE AUTHORITIES TO DEVELOP THEIR TRADING SYSTEMS THE LONDON EXCHANGE ALSO ANNOUNCED IT IS CONSIDERING WITHDRAWING FROM SETTLING STOCK TRADES FOR NOW THOUGH THE EXCHANGE WILL CONTINUE TO SUPPLY SETTLEMENT SERVICES THROUGH ITS TALISMAN SYSTEM WHICH WAS INTRODUCED IN 1979 THE STOCK EXCHANGE HAS PROPOSED THAT A SEPARATE CLEARINGHOUSE OWNED BY USERS OF THE EXCHANGE BE SET UP TO HANDLE SETTLEMENTS 9304230182 930423 WHO'S NEWS TRANSAMERICA CORP TRANSAMERICA CORP SAN FRANCISCO THIS LIFE INSURANCE CONCERN PROMOTED FOUR EXECUTIVES TO NEWLY CREATED POSTS IN A REORGANIZATION DAVID CARPENTER 54 YEARS OLD AND RICHARD FINN 58 GROUP VICE PRESIDENTS WERE NAMED EXECUTIVE VICE PRESIDENTS EDGAR GRUBB 53 FORMERLY SENIOR VICE PRESIDENT WAS NAMED EXECUTIVE VICE PRESIDENT THOMAS CUSACK 37 FORMERLY VICE PRESIDENT WAS NAMED SENIOR VICE PRESIDENT 9304230181 930423 KUWAIT'S GRUPO TORRAS TO REORGANIZE DEBT OF SPANISH PAPER UNIT SPECIAL TO THE WALL STREET JOURNAL MADRID GRUPO TORRAS THE KUWAIT INVESTMENT OFFICE'S SPANISH HOLDING COMPANY SAID IT WILL CONVERT INTO EQUITY AND RESERVES 235 BILLION PESETAS 2025 MILLION OF THE DEBT IT HOLDS IN TORRASPAPEL THE GROUP'S TROUBLED PAPER UNIT IN SPAIN THE MOVE PAVES THE WAY FOR TORRAS TO CARRY OUT A FARREACHING REORGANIZATION OF TORRASPAPEL'S ACTIVITIES THEREBY ENHANCING THE KIO'S CHANCES OF FINDING A BUYER FOR THE PAPER COMPANY A TORRAS SPOKESWOMAN SAID FOREIGN BANK CREDITORS HAVE WARNED THEY MAY CALL IN MOST OF THEIR 12 BILLIONPESETA LOANS TO TORRASPAPEL UNLESS THE KIO WHICH OWNS 94 OF THE PAPER COMPANY MADE SOME SORT OF FINANCIAL COMMITMENT TO ITS UNIT TORRASPAPEL ONE OF THE FEW MAJOR KIO COMPANIES IN SPAIN THAT HASN'T SUSPENDED PAYMENTS TO CREDITORS SAID IT WILL ABSORB THE DEBTS OF ITS UNIT SARRIOPAPEL & CELULOSA SA BEFORE CONVERTING ITS OWN DEBT WITH TORRAS INTO EQUITY A SPOKESWOMAN FOR TORRAS SAID THE PAPER COMPANY PLANS TO ISSUE 185 BILLION PESETAS OF NEW SHARES WITH A FIVE BILLION PESETA PREMIUM THAT WILL GO TOWARD RESERVES THIS WILL BOOST TORRASPAPEL'S CAPITAL TO 35 BILLION PESETAS AND REDUCE ITS CONSOLIDATED DEBT FROM 35 BILLION PESETAS TO THE 12 BILLION PESETAS THAT IT OWES FOREIGN BANKS IN COMPLIANCE WITH SPANISH LAW PAPER COMPANY SARRIO SA WILL BE GIVEN THE OPTION OF MAINTAINING WITH A CAPITAL INJECTION ITS 6 STAKE IN TORRASPAPEL THE SPOKESWOMAN SAID ONCE THE DEBTFOREQUITY SWAP IS COMPLETED TORRASPAPEL PLANS TO REDUCE ITS WORK FORCE OF 6000 BY AS MUCH AS A THIRD AND SLASH PRODUCTION AT ITS NINE FACTORIES A SPOKESWOMAN FOR THE PAPER COMPANY SAID IT ALSO WILL CLOSE ABOUT 20 OF ITS MORE THAN 50 COMMERCIAL OFFICES DESPITE TORRAS'S OPTIMISM THAT IT CAN FIND A BUYER FOR TORRASPAPEL THE SPOKESWOMAN SAID IT SEEMS PRETTY UNLIKELY THE COMPANY WILL BE SOLD ANY TIME SOON PAPER COMPANIES EVERYWHERE ARE DOING BADLY AND NO ONE SEEMS TO BE IN THE MOOD TO BUY ANYTHING 9304230180 930423 FIAT STOCK SOARS ON RUMOR OF ACCORD WITH RENAULT SPECIAL TO THE WALL STREET JOURNAL MILAN ITALY'S FIAT SPA SOARED 55 ON THE MILAN STOCK EXCHANGE YESTERDAY IN ACTIVE TRADING RUMORS HAVE IT THAT FIAT IS PLANNING TO ANNOUNCE THE ACCORD AT THE END OF THE MONTH ONE MILAN ANALYST SAID THE SHARES OF ITALY'S LARGEST PRIVATE INDUSTRIAL GROUP CLOSED AT 6760 LIRE 442 UP FROM 6410 WEDNESDAY FIAT HAS REPEATEDLY DENIED THAT IT'S ABOUT TO SIGN A STRATEGIC ACCORD WITH A MAJOR PARTNER ANY TIME SOON THE COMPANY HAD NO COMMENT ON YESTERDAY'S STOCK PRICE RISE THERE ALSO HAVE BEEN RUMORS THAT FIAT PLANNED A LINKUP WITH PSA PEUGEOT CITROEN SA SOMETHING THE FRENCH CAR MAKER HAS DENIED A PERSON CLOSE TO FIAT SAID IT'S LIKELY THE STOCK'S STRONG SHOWING IS DUE TO THE FACT THAT SOME ANALYSTS NOW ARE RECOMMENDING THE SHARES HE ALSO SAID FIAT'S COLLABORATION WITH MAGISTRATES IN CONNECTION WITH A WIDESPREAD BRIBERY AND CORRUPTION SCANDAL HAS BUOYED INVESTORS' HOPES THAT FIAT CAN EMERGE FROM THE SWEEPING INVESTIGATION BETTER THAN THEY HAD EXPECTED 9304230179 930423 MERCEDES TRIMS PRODUCTION COSTS WITH BABY BENZ' BY JOHN SCHMID SPECIAL TO THE WALL STREET JOURNAL STUTTGART GERMANY MERCEDESBENZ AG CLAIMED A VICTORY AGAINST GERMANY'S INFAMOUSLY HIGH PRODUCTION COSTS WITH ITS REDESIGNED SERIES OF COMPACT SEDANS AVERAGE PRODUCTION COSTS FOR THE LUXURY GERMAN CAR MARKER ARE 35 HIGHER THAN ITS DIRECT JAPANESE COMPETITORS BUT MERCEDES CUT THAT DIFFERENCE BY ABOUT HALF WITH ITS NEW CCLASS COMPACT MODELS SAID KLAUSDIETER VOEHRINGER A MEMBER OF THE MERCEDES EXECUTIVE BOARD RESPONSIBLE FOR PASSENGER CAR PRODUCTION IN ITS CAMPAIGN TO CUT COSTS AND BOLSTER EFFICIENCY MERCEDES SAID IT TOOK LESS THAN 40 MONTHS TO BRING THE NEW MODELS FROM THE DRAWING BOARD TO THE PRODUCTION LINE ABOUT A THIRD LESS TIME THAN NEWCAR DEVELOPMENT HAS TRADITIONALLY DEMANDED AT MERCEDES MERCEDES WILL PRICE THE NEW CCLASS AT THE SAME LEVEL AS ITS PREDECESSOR STARTING AT ABOUT 40500 MARKS 25300 MERCEDES WILL LAUNCH THE NEW MODEL NEXT MONTH SIMULTANEOUSLY IN ALL THE CONTINENTAL EUROPEAN MARKETS NOT JUST GERMANY THE FIRST SUCH COMPREHENSIVE LAUNCH MR VOEHRINGER SAID IN AN INTERVIEW RIGHTHAND DRIVE MODELS FOR THE UK WON'T BE READY UNTIL OCTOBER MERCEDES THE CAR AND TRUCK DIVISION OF GERMANY'S DAIMLERBENZ AG PLANS TO PRODUCE 120000 CCLASS CARS THIS YEAR AT ITS PLANTS IN BREMEN AND STUTTGART OUTPUT WILL RISE TO MORE THAN 200000 NEXT YEAR AFTER THE INITIAL STARTUP THE EXECUTIVE SAID THE NEW CAR WILL COMPETE WITH THE BESTSELLING 3SERIES OF SEDANS FROM ARCHRIVAL BAYERISCHE MOTOREN WERKE AG INDUSTRY ANALYSTS SAY THE NEW CCLASS IS ONE OF THE FEW BRIGHT SPOTS FOR MERCEDES AS THE GERMAN COMPANY GRAPPLES WITH SHRINKING MARKETS FALLING PROFITS AND ECONOMIC WEAKNESS SEPARATELY MR VOEHRINGER SAID MERCEDES EXPECTS TO ANNOUNCE THE LOCATION OF NEW A NORTH AMERICAN PASSENGER CAR ASSEMBLY PLANT IN ABOUT THREE MONTHS HE INSISTED THAT A FINAL DECISION ON THE LOCATION HASN'T YET BEEN MADE WHILE MOST OF THE SPECULATION HAS CENTERED ON A US SITE MR VOEHRINGER SAID IT COULD ALSO BE IN CANADA MERCEDES PREVIOUSLY HAS SAID IT PLANS TO USE THE PLANT TO BUILD A NEW FOURWHEEL DRIVE MULTIPURPOSE UTILITY VEHICLE THAT WILL COMPETE WITH VEHICLES SIMILAR TO CHRYSLER CORP'S JEEP MODELS 9304230178 930423 TECHNOLOGY & HEALTH ALLOCATION OF ORGANS DISREGARDS NEEDS OF PATIENTS MAY BREAK LAW GAO SAYS BY SCOTT MCCARTNEY STAFF REPORTER OF THE WALL STREET JOURNAL A GENERAL ACCOUNTING OFFICE STUDY OF ORGAN TRANSPLANTATION CONCLUDED THAT INEQUITIES IN THE NATION'S ALLOCATION SYSTEM CAN DENY ORGANS TO SICKER PATIENTS OR PATIENTS WHO HAVE WAITED LONGER AND MAY VIOLATE FEDERAL LAW THE STUDY RELEASED YESTERDAY AT A CONGRESSIONAL HEARING FOUND THAT ORGANS FROM BRAINDEAD DONORS ARE SOMETIMES ALLOCATED TO SPECIFIC HOSPITALS RATHER THAN SPECIFIC PATIENTS SUCH ARRANGEMENTS THE GAO SAID MEAN THAT A RELATIVELY HEALTHIER PATIENT ON A TRANSPLANT WAITING LIST WOULD RECEIVE AN ORGAN WHILE A SICKER PATIENT NEARBY BUT AT A DIFFERENT HOSPITAL WOULD BE PASSED BY PATIENTS CANNOT BE ASSURED THAT ORGANPROCUREMENT ORGANIZATIONS ARE MAKING EQUITABLE ALLOCATION DECISIONS BASED ON MEDICAL CRITERIA THE STUDY SAID A WALL STREET JOURNAL PAGEONE ARTICLE APRIL 1 CHRONICLED PROBLEMS IN THE ALLOCATION OF LIVERS NATIONALLY SHOWING HOW CRITICALLY ILL PATIENTS AT LARGE TRANSPLANT CENTERS SOMETIMES DIE WHILE ORGANS ARE USED AT SMALLER CENTERS FOR HEALTHIER PATIENTS SEE RELATED ARTICLE AGONIZING CHOICES PEOPLE MOST NEEDING TRANSPLANTABLE LIVERS NOW OFTEN MISS OUT POLICY FAVORS LOCAL PATIENTS AND LETS LOCAL HOSPITALS IN ON LUCRATIVE BUSINESS SHOULD SURVIVABILITY MATTER WSJ APRIL 1 1993 UNDER THE CURRENT SYSTEM ORGAN BANKS SERVING SEVERAL HOSPITAL TRANSPLANT PROGRAMS SOMETIMES HAVE ARRANGEMENTS WHERE HOSPITALS CAN KEEP ORGANS DONATED THERE INSTEAD OF OFFERING THEM TO THE TOPPRIORITY PATIENTS WAITING IN THE ORGAN BANK'S SERVICE AREA OTHER ARRANGEMENTS ROTATE ORGANS AMONG HOSPITALS REGARDLESS OF THE CONDITION OF OTHER PATIENTS AS A RESULT SOME PATIENTS MAY MISS THEIR CHANCE THE GAO SAID THE GAO SAID IT FOUND SUCH ARRANGEMENTS AT 20 OF 53 ORGAN BANKS THAT SERVE MORE THAN ONE TRANSPLANT CENTER AND SAID THAT UNLESS THE DEALS WERE MADE ON MEDICAL CRITERIA THEY WOULD VIOLATE THE 1984 NATIONAL ORGAN TRANSPLANT ACT WHICH MANDATED EQUITABLE NATIONAL SHARING OF ORGANS FAVORING TRANSPLANT CENTERS OVER THE NEEDS OF PATIENTS IS CONTRARY TO FEDERAL LAW THE GAO SAID THIS LAW HAS BEEN FLOUNDERING SAID REP HENRY WAXMAN D CALIF WHO CHAIRS THE HOUSE SUBCOMMITTEE ON HEALTH AND THE ENVIRONMENT WHICH HAS BEGUN HEARINGS ON REAUTHORIZATION OF THE NATIONAL ORGAN TRANSPLANT ACT I THINK THERE HAS BEEN A FAILURE TO ESTABLISH CLEARENOUGH STANDARDS THAT EVERYONE WILL AGREE ARE AS REASONABLE AND FAIR AS POSSIBLE HE SAID MR WAXMAN AND THE GAO BOTH FAULTED THE DEPARTMENT OF HEALTH AND HUMAN SERVICES FOR NOT MONITORING AND ASSESSING ORGANBANK PRACTICES AND FOR NOT COMING UP WITH FEDERAL REGULATIONS THAT WOULD MAKE POLICIES OF THE UNITED NETWORK FOR ORGAN SHARING MANDATORY UNOS OPERATES THE NATION'S ORGAN ALLOCATION SYSTEM UNDER FEDERAL CONTRACT ORGAN BANKS ARGUE THAT LOCAL ARRANGEMENTS PROMOTE COOPERATION AMONG COMPETING HOSPITALS AND SURGEONS THE SYSTEM SAID STEPHEN HAID PRESIDENT OF THE ASSOCIATION OF ORGAN PROCUREMENT ORGANIZATIONS MUST BE FLEXIBLE ENOUGH TO ACCOMMODATE SIZE AND GEOGRAPHIC VARIATION TO PROMOTE EQUITY AMONG TRANSPLANT PATIENTS WHILE ALSO BALANCING UTILITY WITH COST AND OUTCOME UNOS SAID A NEW POLICY WILL BECOME EFFECTIVE JULY 1 REQUESTING THAT ORGAN BANKS ADOPT A SINGLE WAITING LIST BASED ON MEDICAL CRITERIA AND THAT SPECIAL RELATIONSHIPS WITH INDIVIDUAL HOSPITALS WITHIN EACH ORGAN BANK'S SERVICE AREA BE ELIMINATED BUT UNOS POLICIES ARE VOLUNTARY AND ORGAN BANKS CAN REQUEST WAIVERS IF AN ORGAN BANK DECIDED TO ADOPT A VARIANCE IN DEFIANCE OF UNOS UNOS WOULD BE POWERLESS TO STOP IT THE NONPROFIT GROUP WHOSE CONTRACT FOR OPERATING THE NATIONAL SYSTEM IS UP FOR RENEWAL THIS YEAR SAID IN RESPONSE TO THE GAO REPORT THE GAO REPORT ALSO SAID UNOS AND HHS WEREN'T DOING ENOUGH TO INCREASE ORGAN DONATION THE NUMBER OF PEOPLE WAITING FOR TRANSPLANTS HAS GROWN TWICE AS FAST AS THE NUMBER OF ORGANS DONATED FROM 1988 TO 1992 A PERIOD DURING WHICH THE GAO SAID 10000 PEOPLE DIED WAITING FOR AN ORGAN TRANSPLANT IN RESPONSE ROBERT HARMON ADMINISTRATOR OF HHS' HEALTH RESOURCES AND SERVICES ADMINISTRATION ASKED CONGRESS TO AUTHORIZE A THREEYEAR NATIONAL DONOR AWARENESS CAMPAIGN SIMILAR TO STOPSMOKING AND AIDS AWARENESS EFFORTS 9304230177 930423 WHO'S NEWS ADVACARE INC ADVACARE INC DALLAS BJ RONE 50 YEARS OLD WAS ELECTED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS CONCERN WHICH PROVIDES BUSINESS SERVICES TO HEALTH CARE COMPANIES MR RONE WHO JOINED THE COMPANY LAST MONTH AS CHIEF FINANCIAL OFFICER SUCCEEDS WILLIAM JOE DAVIS III 46 WHO BECOMES CHAIRMAN MR DAVIS IN TURN SUCCEEDS COMPANY FOUNDER GREGORY S CAMPBELL 46 WHO THE COMPANY SAID RESIGNED AS CHAIRMAN TO PURSUE OTHER INTERESTS MR CAMPBELL WILL CONTINUE TO SERVE AS A DIRECTOR 9304230176 930423 FRANCE'S AXA SAYS NET INCOME FELL 35 FOR FULL YEAR SPECIAL TO THE WALL STREET JOURNAL PARIS FRENCH INSURANCE GROUPE AXA SA SAID NET INCOME FELL 35 TO 155 BILLION FRANCS 2866 MILLION FROM 238 BILLION FRANCS THE PREVIOUS YEAR AXA HAS PROPOSED A NET DIVIDEND OF 23 FRANCS A SHARE THIS YEAR UP FROM 22 FRANCS PAID OUT LAST YEAR AXA BLAMED THE PROFIT DECLINE PRINCIPALLY ON A SIGNIFICANT DROP IN CAPITAL GAINS TO 224 BILLION FRANCS FROM 412 BILLION FRANCS THE GROUP NOTED HOWEVER THAT ITS CORE INSURANCE OPERATIONS HELD FAIRLY STABLE DESPITE SLUGGISH ECONOMIC CONDITIONS THE CONTRIBUTION OF INSURANCE ACTIVITIES TO GROUP NET PROFIT TOTALED 147 BILLION FRANCS LAST YEAR DOWN 34 FROM 153 BILLION FRANCS THE YEAR BEFORE REINSURANCE EARNINGS DROPPED 60 TO 61 MILLION FRANCS 113 MILLION WHILE THE DEFICIT FROM INTERNATIONAL RISKS WIDENED TO 473 MILLION FRANCS FROM 328 MILLION FRANCS A GEOGRAPHICAL BREAKDOWN OF INSURANCE AND REINSURANCE RESULTS REVEALED A MUCH BETTER PERFORMANCE ABROAD THAN IN FRANCE FOREIGN EARNINGS ROSE TO 409 MILLION FRANCS FROM 181 MILLION FRANCS WHILE IN FRANCE THE FIGURE FELL TO 114 BILLION FRANCS FROM 134 BILLION FRANCS AXA NOTED THAT ITS AFFILIATE IN THE US EQUITABLE LIFE REGISTERED A SECOND HALF LOSS OF 77 MILLION FRANCS COMMENTING ON 1993 AXA SAID IT IS BRACING FOR A RECESSION IN EUROPE WHILE THE US OUTLOOK IS IMPROVING THE GROUP EXPECTS TO REGISTER IMPROVED MARGINS ON ACCIDENT INSURANCE ACTIVITIES WHILE OPERATING COSTS DECLINE FOR EQUITABLE AXA SEES AN IMPROVEMENT IN ITS INSURANCE EARNINGS CLAUDE BEBEAR CHAIRMAN SAID HE EXPECTS THE GROUP TO SHOW A RISE IN NET PROFIT THIS YEAR FROM CORE INSURANCE AND ACTIVITIES HOWEVER HE WARNED THAT HE WASN'T SURE ABOUT THE GROUP'S BOTTOM LINE RESULTS BECAUSE THE OUTLOOK ON CAPITAL GAINS AND LOSSES REMAINS UNCERTAIN THIS YEAR MEANWHILE DICK JENRETTE CHAIRMAN OF EQUITABLE LIFE SAID HE EXPECTS EQUITABLE TO POST A RATHER ATTRACTIVE TURNAROUND IN 1993 HE SAID THE GROUP'S IMPROVED CREDIT RATING WILL ALLOW IT TO REDUCE RATES PAID TO POLICYHOLDERS AND THUS IMPROVE MARGINS BECAUSE OF THIS HE SAID EQUITABLE'S OUTLOOK IS SOMEWHAT BETTER THAN THE OUTLOOK FOR THE US INSURANCE INDUSTRY AS A WHOLE EQUITABLE CONTRIBUTED 257 MILLION FRANCS IN 1992 TO AXA'S GROUP EARNINGS IT WAS THE FIRST YEAR THAT EQUITABLE'S EARNINGS WERE CONSOLIDATED INTO AXA'S 9304230175 930423 ENTERPRISE TICKETMASTER CHIEF FACES THE DUBIOUS JOY OF LETTING GO BIGGER GOALS PROMPT ENTREPRENEUR TO SEEK ABOUT 200 MILLION FOR HIS BABY BY JOHN R EMSHWILLER STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES HAVING BUILT A BUSINESS EMPIRE FREDERIC ROSEN NOW FACES THE CHALLENGE OF SELLING IT AND LIVING HAPPILY EVER AFTER MR ROSEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF TICKETMASTER CORP CONFIRMS THAT THE COMPUTERIZED TICKETSELLING FIRM IS FOR SALE AND THAT INVESTMENTBANKING FIRM LAZARD FRERES & CO HAS BEEN RETAINED AS AN ADVISER THE EXECUTIVE SAYS A NUMBER OF POTENTIAL BUYERS HAVE EXPRESSED INTEREST ALTHOUGH MR ROSEN DECLINES TO COMMENT FURTHER PEOPLE FAMILIAR WITH THE MATTER SAY THAT TIME WARNER INC IS INTERESTED AND THAT TICKETMASTER'S ASKING PRICE IS AROUND 200 MILLION PRECIOUS FEW CLOSELY HELD COMPANIES CAN EVEN DREAM OF SUCH A HIGH ASKING PRICE OR SUCH GLAMOROUS SUITORS NONETHELESS THOUSANDS OF COMPANIES EMBARK ON SIMILAR QUESTS EVERY YEAR A LUCRATIVE SALE IS OFTEN THE LONGTERM GOAL AND SOMETIMES THE LAST BIG DEAL OF THE COMPANY'S FOUNDER ALMOST ALWAYS IT IS A HIGHANXIETY EXPERIENCE THE PROCESS STARTS WITH THE DECISION TO LET GO FOR MANY ENTREPRENEURS THAT MEANS REAPING THE REWARDS OF YEARS OF HARD WORK FOR OTHERS BURNING OUT EVEN MORE THAN CASHING OUT IS THE DECISIVE MOTIVE FOR SELLING SAYS CONRAD TUERK PRESIDENT OF TUERK & ASSOCIATES AN IRVINE CALIF MERGERS AND ACQUISITIONS FIRM STILL OTHERS SELL BECAUSE THEY ARE LOOKING FOR BIGGER OPPORTUNITIES FOR THEMSELVES AND THEIR COMPANY PEOPLE WHO KNOW MR ROSEN SAY HE FALLS INTO THAT CATEGORY A FIERCE COMPETITOR MR ROSEN PLUCKED TICKETMASTER FROM COMPARATIVE OBSCURITY A DECADE AGO WITH FINANCIAL BACKING FROM THE WEALTHY PRITZKER FAMILY AND BUILT IT INTO A NATIONAL POWERHOUSE WHEN MR ROSEN BEGAN RIVAL TICKETRON DOMINATED THE BUSINESS BUT TWO YEARS AGO A THOROUGHLY BEATEN TICKETRON SOLD MOST OF ITS ASSETS TO TICKETMASTER AND WENT OUT OF BUSINESS TODAY TICKETMASTER SELLS OVER 1 BILLION IN TICKETS ANNUALLY AND REAPS ABOUT 150 MILLION A YEAR IN SERVICEFEE REVENUES WHILE THE PRITZKERS HOLD A MAJORITY STAKE IN THE COMPANY THEY HAVE ALWAYS GIVEN MR ROSEN CARTE BLANCHE TO RUN IT AS HE SAW FIT ALTHOUGH HE DECLINES TO SPECIFY HIS MINORITY INTEREST IN TICKETMASTER MR ROSEN CLEARLY STANDS TO GAIN FINANCIALLY FROM A SALE EVEN SO FRIENDS AND ASSOCIATES SAY AMBITIONS OTHER THAN FINANCIAL GAIN ARE DRIVING THE 49YEAROLD ENTREPRENEUR THESE PEOPLE SAY MR ROSEN HOPES TO BECOME A MAJOR PLAYER IN THE BURGEONING GLOBALENTERTAINMENT BUSINESS DOMINATED BY A RELATIVELY SMALL NUMBER OF BIG CORPORATIONS TO ACHIEVE HIS AMBITIONS THESE OBSERVERS SAY HE WOULD LIKE TO REMAIN WITH THE COMPANY AND USE THE RESOURCES OF A BIG CORPORATE PARENT TO EXPAND TICKETMASTER'S HORIZONS RECENTLY TIME WARNER CHAIRMAN GERALD LEVIN AND OTHER COMPANY OFFICIALS TOURED TICKETMASTER'S HEADQUARTERS IN AN EVALUATION FOR A POSSIBLE BID ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER ALTHOUGH A TIME WARNER SPOKESMAN DECLINES TO COMMENT TICKETMASTER CLEARLY OFFERS AN ADVANTAGE FOR BIG CORPORATIONS IT DOMINATES A POTENTIALLY EXPANDABLE MARKET NICHE THAT A BUYER CAN USE IN CONJUNCTION WITH ITS OTHER PRODUCTS AND SERVICES FOR EXAMPLE TICKETMASTER HAS A LARGE COMPUTER DATABASE OF CUSTOMER INFORMATION A NATIONWIDE PHONESALES NETWORK AND EXCLUSIVE CONTRACTS TO SELL TICKETS FOR HUNDREDS OF ARENAS AND AUDITORIUMS OBSERVERS SAY THAT TICKETS COULD EVENTUALLY BE SOLD OVER INTERACTIVE NETWORKS BEING DEVELOPED TO MARRY CABLE TELEVISION AND COMPUTERS ALLOWING CONSUMERS TO TACKLE A RANGE OF TASKS FROM HOME TICKETMASTER ALREADY HAS BEGUN WORKING WITH SOME OF THE BIG PLAYERS IT HAS ARRANGEMENTS WITH TIME WARNER AND OTHER COMPANIES UNDER WHICH TICKETMASTER TELEPHONE SALESPEOPLE PITCH ADDON PRODUCTS SUCH AS COMPACT DISKS AND HOME VIDEOS WHILE TAKING TICKET ORDERS LAST YEAR TIME WARNER AND TICKETMASTER ANNOUNCED A JOINT VENTURE TO EXTEND TICKETMASTER'S COMPUTERIZEDSELLING SERVICES INTO EUROPE A SWITCH IN OWNERSHIP COULD MAKE SENSE FOR THE PRITZKERS OWNERS OF THE HYATT HOTEL CHAIN AND OTHER REALESTATE HOLDINGS FOR THEM TICKETMASTER HAS ALWAYS BEEN SOMETHING OF A SIDELINE THERE AREN'T ENOUGH PROFITS IN THE COMPUTERTICKETING BUSINESS TO MEET FRED'S AMBITIONS COMMENTED JAY PRITZKER BUSINESS HEAD OF THE FAMILY IN A 1991 INTERVIEW AT SOME POINT HE ADDED WE WILL PROBABLY SELL TICKETMASTER ON TOP OF THE DECISION TO SELL A COMPANY MUST ALSO WRESTLE WITH ANOTHER TOUGH QUESTION WHEN SOME ANALYSTS THINK THE RIGHT TIME FOR TICKETMASTER MIGHT BE NOW THEY POINT OUT THAT THE COMPANY IS AT THE TOP OF ITS MARKET AND HAS RELATIVELY LITTLE ROOM TO GROW IN ITS TRADITIONAL LINE OF BUSINESS TICKETMASTER MIGHT AS WELL SELL BECAUSE IT WON'T GET BETTER IT ALREADY HAS THE WHOLE ENCHILADA SAYS PETER HANSON PRESIDENT OF PROLOGUE SYSTEMS INC A MADISON WIS COMPETITOR MOREOVER THERE IS THE RISK OF ADVERSE LEGISLATION OR LITIGATION IN RECENT YEARS POLITICIANS IN NEW YORK AND CALIFORNIA WORRIED ABOUT TICKETMASTER'S MARKET MUSCLE HAVE INTRODUCED BILLS TO TIGHTEN REGULATION OF TICKETSELLING FIRMS SO FAR THOSE EFFORTS HAVE FAILED HOWEVER THE COMPANY IS THE DEFENDANT IN SEVERAL PRIVATE ANTITRUST SUITS PENDING IN A SAN FRANCISCO STATE COURT TICKETMASTER DENIES ANY WRONGDOING HAVING DECIDED TO SELL MR ROSEN AND THE PRITZKERS NOW FACE THE ISSUE OF NEGOTIATING A PRICE POTENTIAL BUYERS ARE REPORTEDLY BALKING AT PAYING ANYTHING NEAR THE 200 MILLION ASKING PRICE ONE PERSON CLOSE TO THE SITUATION SAYS THE NUMBERS ARE BOUNCING ALL OVER THE PLACE THAT IS A FAIRLY TYPICAL PROBLEM WITH TRANSACTIONS INVOLVING CLOSELY HELD COMPANIES SAYS JON GOODMAN DIRECTOR OF THE ENTREPRENEUR PROGRAM AT THE UNIVERSITY OF SOUTHERN CALIFORNIA'S BUSINESS SCHOOL UNLIKE PUBLIC COMPANIES THERE IS NO RULE OF THUMB OR FORMULA OR FINANCE BOOK YOU CAN LITERALLY PICK A NUMBER AND I CAN FIND AN EXPERT TO SUPPORT IT MS GOODMAN SAYS ASSUMING THAT TICKETMASTER IS SOLD TO A BIG CORPORATION MR ROSEN MIGHT LIVE TO REGRET THE MOVE SOME PEOPLE SAY WHILE A GIANT PARENT CAN EXPAND AN ENTREPRENEUR'S HORIZONS IT CAN ALSO BE A CONSTRICTING EXPERIENCE FOR ONE ACCUSTOMED TO BEING HIS OR HER OWN BOSS SAYS JOHN DAVIS PRESIDENT OF THE OWNERMANAGED BUSINESS INSTITUTE A SANTA BARBARA CALIF CONSULTING FIRM MORE OFTEN THAN NOT CORPORATE BUREAUCRACIES AND ENTREPRENEURS DON'T MESH WELL SAYS MR DAVIS AS A RESULT MOST OWNERMANAGERS WHO SELL OUT AND STAY AROUND ARE MISERABLE 9304230174 930423 INTERNATIONAL ITALY'S PREMIER AMATO QUITS CLOSING CHAPTER RESIGNATION FOLLOWS VOTE TO REFORM THE NATION'S SCANDALRIDDEN POLITICS BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL PRIME MINISTER GIULIANO AMATO RESIGNED CLOSING A 45YEAR CHAPTER IN ITALIAN HISTORY DOMINATED BY THE SAME RULING COALITION GOVERNMENTS THE MOVE CAME THREE DAYS AFTER ITALIAN VOTERS OVERWHELMINGLY PASSED A REFERENDUM TO REFORM THE COUNTRY'S CORRUPTIONPLAGUED POLITICAL SYSTEM BY INTRODUCING A MAJORITYSTYLE ELECTORAL PROCESS FOR THE SENATE PRESIDENT OSCAR LUIGI SCALFARO SAID MR AMATO'S GOVERNMENT WOULD REMAIN UNTIL A NEW ONE IS FORMED MR SCALFARO WILL HOLD CONSULTATIONS WITH PARTY LEADERS THIS WEEKEND AND IS EXPECTED TO NAME A PRIME MINISTER AS EARLY AS SUNDAY WHO WOULD BE ASKED TO FORM A NEW GOVERNMENT WHILE THE NEXT GOVERNMENT WILL NOT BE A CLEAN BREAK WITH THE PAST IT'S LIKELY TO SERVE AS A TRANSITIONAL GOVERNMENT WITH THE SPECIFIC TASK OF ENACTING MAJORITYSYSTEM ELECTORAL REFORM FOR THE LOWER HOUSE THE CHAMBER OF DEPUTIES EARLY ELECTIONS WOULD THEN BE CALLED UNDER THIS NEW SYSTEM USHERING IN AN ERA WITH NEW POLITICAL PARTIES AND SOME NEW POLITICIANS THE SHAPE OF THE INTERIM GOVERNMENT APPEARED UNCLEAR POLITICAL PARTIES REMAIN DIVIDED ON A NUMBER OF ISSUES INCLUDING THE DURATION OF THE INTERIM GOVERNMENT WHETHER IT SHOULD CONCENTRATE ONLY ON ELECTORAL REFORM OR ALSO ECONOMIC ISSUES AND WHEN NEW ELECTIONS SHOULD BE CALLED DURING HIS TERM MR AMATO OVERSAW A HISTORIC WAGE ACCORD ENDING ITALY'S INFLATIONARY WAGEINDEXING SYSTEM HE TRIED FRUITLESSLY TO CONTROL A MONETARY CRISIS BY ENACTING AN EMERGENCY AUSTERITY PACKAGE BUT ITALY WAS FORCED TO DEVALUE THE LIRA AND DROP OUT OF THE EUROPEAN MONETARY SYSTEM LAST SEPTEMBER CONDITIONS WORSENED AS THE CORRUPTION SCANDAL WIDENED AND RESULTED IN THE ARREST OR INVESTIGATION OF MORE THAN 2500 PEOPLE THE CREDIBILITY OF MR AMATO'S FOURPARTY COALITION HAS ERODED STEADILY SINCE JANUARY WITH SIX OF HIS CABINET MINISTERS ACCUSED OF CORRUPTION OR MAFIA TIES 9304230173 930423 ECONOMY GERMANY MAKES FURTHER CUTS IN KEY RATES REDUCTIONS REFLECT WORRIES OVER NATION'S RECESSION OTHER COUNTRIES FOLLOW BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT REACTING TO PERSISTENT DOMESTIC AND INTERNATIONAL PRESSURE FOR A GERMAN MONETARY EASING THE BUNDESBANK LOWERED KEY INTEREST RATES FOR THE THIRD TIME THIS YEAR THE CUTS IN THE CENTRAL BANK'S LOMBARD RATE AND DISCOUNT RATE REFLECTED CONCERN ABOUT GERMANY'S DEEPENING RECESSION AND FOLLOWED CALLS BOTH INSIDE AND OUTSIDE THE COUNTRY FOR LOWER GERMAN RATES AS A MEANS OF PROMOTING OVERALL EUROPEAN ECONOMIC GROWTH THE RATE CUT ALSO EASED STRAINS ON WEAKER CURRENCIES IN THE EUROPEAN MONETARY SYSTEM THE REDUCTION BY THE BUNDESBANK'S CENTRAL BANK COUNCIL LOWERED THE DISCOUNT RATE BY A CAUTIOUS ONEQUARTER PERCENTAGE POINT TO 725 FROM 75 AND THE LOMBARD RATE TO 85 FROM 9 THE DISCOUNT FACILITY OFFERS BANKS A LIMITED AMOUNT OF INEXPENSIVE REFINANCING UNDER FIXED BORROWING QUOTAS BORROWING FROM THE LOMBARD FACILITY IS UNLIMITED AND IS MORE CLOSELY WATCHED BY THE CREDIT MARKETS BECAUSE THE LOMBARD RATE SERVES AS A CEILING FOR SHORTTERM MONEYMARKET RATES THE RATE REDUCTIONS CAME EARLIER THAN EXPECTED AND WERE WELCOMED IN WASHINGTON BY TREASURY SECRETARY LLOYD BENTSEN WITH THE WORLD ECONOMY GROWING SUBSTANTIALLY MORE SLOWLY THAN THE INTERNATIONAL MONETARY FUND AND MANY OTHER ECONOMIC FORECASTERS HAD EXPECTED THE US HAS BEEN PUSHING BOTH EUROPE AND JAPAN TO RESPOND AS THE EUROPEAN AND JAPANESE ECONOMIES ACCELERATE THE APPETITE FOR US EXPORTS PRESUMABLY WOULD INCREASE THE BUNDESBANK'S ACTION CAME JUST A WEEK BEFORE FINANCE MINISTERS AND CENTRAL BANKERS FROM THE GROUP OF SEVEN INDUSTRIALIZED COUNTRIES ARE TO MEET IN WASHINGTON TO DISCUSS GLOBAL GROWTH AMONG OTHER ISSUES THE TREASURY HAS MADE CLEAR THAT IT VIEWS LOWER GERMAN INTEREST RATES AS A KEY STEP BECAUSE REDUCTIONS IN GERMANY WILL ALLOW RATES IN OTHER EUROPEAN COUNTRIES TO COME DOWN HELPING TO RESUSCITATE THEIR ECONOMIES THE IMF HAS BEEN MAKING A SIMILAR ARGUMENT INDEED YESTERDAY'S ACTION TRIGGERED RATE CUTS BY THE CENTRAL BANKS OF DENMARK AUSTRIA BELGIUM AND ITALY IT ALSO BOOSTED FINANCIAL MARKETS ACROSS EUROPE AS CRUCIAL AS LOWER RATES ARE FOR GERMANY AND OTHER EUROPEAN ECONOMIES MONETARY ANALYSTS SAID THE BUNDESBANK RISKS ITS CREDIBILITY IF IT CONTINUES TO REDUCE RATES WITH GERMAN INFLATION RUNNING ABOVE 4 AND WITH BONN'S BUDGET DEFICIT GROWING MARKET ECONOMISTS WARNED THAT GERMAN BOND MARKETS COULD BEGIN NUDGING UP LONGTERM INTEREST RATES AGAIN IF THE BUNDESBANK IS VIEWED AS RELAXING ITS INFLATION FIGHT TOO QUICKLY THE BUNDESBANK CUTS SEEM TO BE MORE THAN STEPBYSTEP AND ARE BECOMING MORE AGGRESSIVE BUT THEY ARE TRADING A VERY DANGEROUS LINE IN RESPECT TO INFLATION AND DEFICITS SAID NIGEL RENDELL AN ECONOMIST AT JAMES CAPEL & CO IN LONDON THE BOTTOM LINE IS THAT THEY ARE VERY CONCERNED ABOUT THE DOMESTIC ECONOMY AND WANT TO AVOID A FULLBLOWN RECESSION IN GERMANY AND THE REST OF EUROPE THAT CAN BE THE ONLY REASON BEHIND THE STEP THE GERMAN ECONOMY IS WIDELY EXPECTED TO CONTRACT BY 1 OR 2 IN 1993 COMPLICATING AND INCREASING THE COSTS OF BONN'S DIFFICULT UNIFICATION PROCESS GERMAN FINANCE MINISTER THEO WAIGEL SAID IN A STATEMENT THAT THE LATEST BUNDESBANK RATE REDUCTION SHOULD HELP PROMOTE BUSINESS CONFIDENCE IN WHAT HE CALLED A DIFFICULT ECONOMIC SITUATION MR WAIGEL CONFRONTED WITH A FRESH OUTBREAK OF POLITICAL INFIGHTING THAT THREATENS HIS HARDWON FISCAL CONSOLIDATION PROGRAMS ID POLITICIANS AND INTEREST GROUPS HAVE TO CONTRIBUTE THEIR SHARE TO RESTABILIZING THE GERMAN ECONOMY THE BONN GOVERNMENT RECEIVED FURTHER GOOD NEWS FROM THE BUNDESBANK YESTERDAY THE CENTRAL BANK SAID IT WILL TRANSFER 131 BILLION MARKS 818 BILLION FROM ITS 1992 PROFIT TO THE DEPLETED FEDERAL TREASURY THE TRANSFER WAS SIX BILLION MARKS ABOVE PLAN BUT BELOW THE 145 BILLION MARKS FROM THE BANK'S 1991 ACCOUNTS THAT WERE GIVEN TO THE GOVERNMENT A YEAR AGO 9304230172 930423 MARKETING & MEDIA ADVERTISING INDUSTRY GETS AN EARFUL ON HOW TO SURVIVE TODAY AND IN FUTURE BY KEVIN GOLDMAN LAGUNA NIGUEL CALIF MADISON AVENUE IS GETTING AN EARFUL OF ADVICE AT THE ANNUAL CONVENTION OF ADVERTISING AGENCIES THAT CONCLUDES HERE TOMORROW IN VARIOUS SESSIONS AND SPEECHES ADVERTISING EXECUTIVES ARE BEING TOLD TO OPERATE MORE EFFICIENTLY OR SELFDESTRUCT TO RALLY TOGETHER TO FIGHT THE CLINTON ADMINISTRATION WHICH SEEMS DETERMINED TO ENFORCE NEW POTENTIALLY COSTLY REGULATIONS FOR ADVERTISING AND TO RETHINK THE CONCEPT OF TELEVISION ADVERTISING IN THE COMING 500CHANNEL INTERACTIVE TV ENVIRONMENT A TOUGH ASSESSMENT OF MADISON AVENUE'S FRAILTIES CAME YESTERDAY MORNING FROM JOHN O'TOOLE THE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE AMERICAN ASSOCIATION OF ADVERTISING AGENCIES IN A SEVERE LECTURE MR O'TOOLE WARNED AGENCIES THAT THE OVERWHELMING DANGER IS THEIR FAILURE TO OPERATE MORE EFFICIENTLY AND RETRAIN EXECUTIVES IN SUCH CRUCIAL SKILLS AS DIRECT MARKETING AND SALES PROMOTION AGENCIES MR O'TOOLE WARNED ARE HOBBLED BY YESTERDAY'S STRUCTURE THERE ARE PEOPLE SITTING IN MEETINGS CONTRIBUTING NOTHING THERE ARE LAYERS OF SUPERVISION BACK AT THE AGENCY THAT IN THE EYES OF THE ADVERTISER DO NOTHING BUT SLOW THINGS DOWN AT THE SAME TIME MR O'TOOLE BERATED AGENCIES FOR GIVING THEIR SERVICES AWAY TOO CHEAPLY AGENCY COMPENSATION ONCE 12 TO 15 OF AN ADVERTISING CLIENT'S SPENDING HAS SHRUNK TO BETWEEN 5 AND 7 FOR REASONS I DON'T FULLY UNDERSTAND MANY AGENCIES SEEM RELUCTANT TO INSIST UPON FAIR PAYMENT FOR THOSE UNIQUE SERVICES MR O'TOOLE SAID ALL OF THIS RELUCTANCE IS CONTRIBUTING TO A COMMODITIZATION OF ADVERTISING AGENCY SERVICES THAT IS BEING EXPLOITED BY UNPROFESSIONAL ADVERTISERS AND IS ERODING THE CONFIDENCE OF THE BETTER ONES UNTIL THE SITUATION IS IMPROVED HE SAID WE'RE AN ENDANGERED INDUSTRY IN A PRIVATE SESSION PRIOR TO MR O'TOOLE'S ADDRESS THE TRADE GROUP ALSO KNOWN AS THE FOUR A'S WENT ON THE OFFENSIVE AGAINST WHAT THE ORGANIZATION CALLED WASHINGTON ADVERSARIES INCLUDING PRESIDENT CLINTON AND CONGRESS THE CLINTON ADMINISTRATION SAID HAL SHOUP EXECUTIVE VICE PRESIDENT AND DIRECTOR OF THE FOUR A'S WASHINGTON OFFICE FEELS ITS ROLE IS TO REGULATE THE PRIVATE SECTOR INCLUDING ADVERTISING COMPANIES WHICH CAN NOW DEDUCT 100 OF THEIR ADVERTISING EXPENDITURES AS A BUSINESS EXPENSE MAY SEE SOME OF THAT BENEFIT REDUCED SOME POLITICIANS DON'T KNOW SQUAT ABOUT ADVERTISING MR SHOUP TOLD THE WELLATTENDED EARLY MORNING SESSION AND THEY KNOW LESS THAN SQUAT ABOUT THE ADVERTISING AGENCY BUSINESS THE SOLUTION HE SAID IS TO INCREASE LOBBYING EFFORTS TO EDUCATE LAWMAKERS POSSIBLY INVITING THEM TO SPEND THE DAY AT AN AD AGENCY TELEVISION PRODUCER HARRY THOMASON WHO WITH HIS WIFE LINDA BLOODWORTHTHOMASON IS BEHIND THREE CBS PRIMETIME SERIES EVENING SHADE HEARTS AFIRE AND DESIGNING WOMEN WILL ADDRESS THE CONVENTION TODAY TO ADVOCATE A RETURN TO THE DAYS WHEN SHOWS HAD A SINGLE SPONSOR ADVERTISERS SHOULD GET THEMSELVES IDENTIFIED WITH A SINGLE SHOW SAID MR THOMASON WHO ALONG WITH HIS WIFE WAS A PROMINENT SUPPORTER OF PRESIDENT CLINTON'S CAMPAIGN LAST YEAR A LARGE COMPANY LIKE PROCTER & GAMBLE COULD SHOWCASE DIFFERENT PRODUCTS FROM ITS VARIOUS CATEGORIES THROUGHOUT A HALFHOUR OR ONEHOUR SHOW MR THOMASON SAID THAT IF THE 500CHANNEL TV MARKET BECOMES A REALITY ADVERTISERS WILL HAVE TO THINK OF NEW WAYS TO BREAK THROUGH THE DIN OF CLUTTER AND ALIGNING THEMSELVES WITH SPECIFIC SHOWS MAY BE THE WAY TO DO IT HE ADDED BUT MR THOMASON DOESN'T BELIEVE ADVERTISERS SHOULD GET INVOLVED IN CREATIVE MATTERS DURING THE EARLY DAYS OF HEARTS AFIRE HE SAID SEVERAL UNNAMED ADVERTISERS THREATENED TO PULL OUT OF THE SITCOM ABOUT A HOTANDHEAVY ROMANCE BETWEEN TWO WASHINGTON STAFFERS WORKING FOR A POLITICIAN THE OBJECTION THE TWO STARS WERE HOPPING INTO THE SACK A LOT EVEN THOUGH THEY WEREN'T MARRIED OR ENGAGED THE ONE MISTAKE WE MADE WAS TO UNDERESTIMATE THE PRUDISHNESS OF ADVERTISERS MR THOMASON SAID IN AN INTERVIEW YESTERDAY WE NEVER GOT A COMPLAINT FROM MIDDLE AMERICA OR FROM ANY EVANGELIST CRITICIZING THE SHOW IT ALL CAME FROM ADVERTISER PRESSURE HE SAID ALTHOUGH HE DECLINED TO BE SPECIFIC THE TWO CHARACTERS DID EVENTUALLY GET MARRIED BUT MR THOMASON SAID THAT WAS THE PLAN ALL ALONG MICHAEL DREXLER PRESIDENT OF BOZELL'S BJK&E MEDIA A BUYING SERVICE IS SCHEDULED TO MODERATE A PANEL HERE TOMORROW TITLED TV THE NEXT FIVE YEARS MR DREXLER PLANS TO WARN ADVERTISERS THAT THEY MUST PREPARE FOR THE DAY WHEN PASSIVE TV VIEWERS BECOME ACTIVE SHOPPERS VIA THEIR TV SETS COUPONS FOR EXAMPLE MAY ONE DAY BE DISPENSED FROM A PRINTER ATTACHED TO A TELEVISION HE PREDICTS AT THE SAME TIME AS THE NUMBER OF CHANNELS INCREASES AND THE MASS AUDIENCE FOR NETWORK TELEVISION CONTINUES TO SHRINK MR DREXLER SAID YESTERDAY ADVERTISERS WILL NO LONGER BE ABLE TO SPEND HUGE AMOUNTS OF MONEY TO PRODUCE LAVISH SPOTS INSTEAD HE SAID WE'RE GOING TO HAVE TO BE MORE CREATIVE IN FINDING WAYS TO REACH A SMALLER AUDIENCE MR DREXLER APPLAUDED NBC A GENERAL ELECTRIC CO UNIT FOR ITS EFFORTS TO BUILD VIEWER LOYALTY NBC IS EXPECTED TO ANNOUNCE TODAY THAT IT WILL MARKET A 2 1/2HOUR SATURDAY MORNING BLOCK OF SHOWS FOR TEENS UNDER THE BRAND NAME TNBC INCLUDING A UNIFIED ONAIR DESIGN FOR THE PROGRAM TITLES AND PROMOTIONS AN AD CAMPAIGN AND LICENSED PRODUCTS FROM THE SERIES INCLUDING NAME YOUR ADVENTURE CALIFORNIA DREAMS AND SAVED BY THE BELL THE NEW CLASS NBC EXECUTIVES SAY THEY ARE IN DISCUSSIONS TO HAVE A MAJOR ADVERTISER PROBABLY A MAJOR RETAILER TIE IN WITH THE SHOWS FOR A BACKTOSCHOOL CAMPAIGN IN SEPTEMBER THOUGH BRAND NAMES HAVE BEEN TAKING A BEATING LATELY MR DREXLER MAINTAINS THE ONLY WAY YOU CAN SURVIVE IN A 500PLUS CHANNEL ENVIRONMENT IS THROUGH BRANDING YOU MUST IDENTIFY WHAT YOU ARE AND WHO YOU REPRESENT IT'S THE ONLY WAY TO STAND OUT FROM THE CROWD AND THAT IS WHAT NBC IS TRYING TO DO IN A COMPETITIVE CATEGORY WITH A DEMOGRAPHIC THAT HAS FICKLE TASTES WHEN NISSAN MOTOR CO'S INFINITI UNVEILS ITS NEW ADVERTISING CAMPAIGN TODAY FROM ITS NEW AD AGENCY CHIAT/DAY THE VOICEOVER WILL ALSO BE WELL NEW GONE FROM THE 75 MILLION INFINITI ACCOUNT IS THE ACTOR MICHAEL DOUGLAS WHO HAS ESPOUSED THE AUTOMOBILE'S ASSETS IN AN OHSO COOL VOICE FOR SEVERAL YEARS MR DOUGLAS IS BEING REPLACED BY ANOTHER ACTOR JONATHAN PRYCE WHO HAS APPEARED ON BROADWAY IN MISS SAIGON AND MORE RECENTLY IN TIME WARNER INC'S HOME BOX OFFICE PRODUCTION OF BARBARIANS AT THE GATE CHIAT/DAY WAS AWARDED THE INFINITI ACCOUNT LAST NOVEMBER AFTER NISSAN FIRED BOSTONBASED HILL HOLLIDAY CONNORS COSMOPULOS CHIAT ALREADY HANDLES NISSAN'S ESTIMATED 260 MILLION CAR AND TRUCK ADS FOOTE CONE & BELDING COMMUNICATIONS CHICAGO SAID IT WON TWO NEW ACCOUNTS THE INDONESIAN TOURISM PROMOTION BOARD OF JAKARTA AND THE CALIFORNIA ALMOND BOARD BASED IN MODESTO CALIF THE INDONESIAN TOURISM BOARD IS LAUNCHING A GLOBAL AD CAMPAIGN WITH ESTIMATED THREEYEAR BILLINGS OF 100 MILLION THE AGENCY SAID TO COMMEMORATE ITS 50TH YEAR OF NATIONAL INDEPENDENCE IN 1995 FOOTE CONE'S JAKARTA OFFICE IS MANAGING THE ACCOUNT SEPARATELY THE CALIFORNIA ALMOND BOARD HIRED FOOTE CONE'S SAN FRANCISCO OFFICE FOR A NATIONAL AD CAMPAIGN A NEW ACCOUNT WITH ESTIMATED BILLINGS OF CLOSE TO 5 MILLION THE ALMOND BOARD'S DIRECTOR OF MARKETING ROBERT PHINNEY HIRED FOOTE CONE IN THE MID1980S WHEN HE HELD A SIMILAR POSITION AT THE CALIFORNIA RAISIN ADVISORY BOARD FOOTE CONE CREATED THE LONGLIVED DANCING RAISINS CAMPAIGN FOR THAT CLIENT 9304230171 930423 THURSDAY'S MARKETS STOCKS RETREAT BONDS STEADY DOLLAR DROPS BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL HEAVY SELLING OF DRUG TECHNOLOGY AND TRANSPORTATION SHARES LED THE STOCK MARKET LOWER BONDS WERE UNCHANGED AND THE DOLLAR FELL TOUCHING THE FIFTH CONSECUTIVE POSTWORLD WAR II LOW AGAINST THE YEN THE DOW JONES INDUSTRIAL AVERAGE SLID 1027 POINTS TO 342917 IN ACTIVE TRADING STANDARD & POOR'S 500STOCK INDEX SKIDDED 417 TO 43946 AND THE NASDAQ COMPOSITE INDEX SLIPPED 053 TO 66351 AS WORRIES ABOUT SEMICONDUCTOR GIANT INTEL SPARKED A SELLOFF IN ITS STOCK AND A HOST OF OTHER TECHNOLOGY ISSUES EVEN THE HIGHFLYING DOW JONES TRANSPORTATION AVERAGE TOOK A DIVE SINKING 3848 TO 162728 AFTER A DISAPPOINTING EARNINGS REPORT FROM CONSOLIDATED RAIL ANALYSTS SAID THE BUNDESBANK'S MOVE TO CUT KEY SHORTTERM INTEREST RATES BUOYED THE INDUSTRIAL AVERAGE IN THE MORNING AS INVESTORS SNAPPED UP MULTINATIONAL STOCKS IN HOPES THAT THE GERMAN MOVE WOULD STIMULATE THE DEPRESSED EUROPEAN ECONOMIES BUT THE DOW'S GAINS EVAPORATED BY LATE AFTERNOON WHEN A WAVE OF COMPUTERGUIDED SELL PROGRAMS HIT THE MARKET TIM LOVE SENIOR PORTFOLIO MANAGER AT MARINVEST CITED THE MARKET'S FAILURE TO RALLY IN THE FACE OF A GERMAN RATE CUT AS A SIGN OF INVESTOR SKITTISHNESS THE MARKET IS EXTREMELY DANGEROUS RIGHT NOW SAID MR LOVE WHEN A COMPANY REPORTS EARNINGS THAT ARE SLIGHTLY NEGATIVE A STOCK IS BADLY HURT AND WHEN THE EARNINGS COME IN IN LINE WITH EXPECTATIONS INVESTORS SELL ON THE GOOD NEWS MR LOVE SAID THE MARKET'S NARROW TRADING RANGE COULD BE BROKEN IN THE NEXT FEW WEEKS AS FIRSTQUARTER EARNINGS REPORTS CONTINUE TO TRICKLE OUT THERE IS REALLY ONLY ONE THING THAT CAN TAKE THE MARKET HIGHER AND THAT IS GENUINELY GOOD EARNINGS SAID MR LOVE OBVIOUSLY THEY'RE NOT THERE IN THE CONSUMER STAPLES AREA BUT THEY ARE DEBATABLY THERE IN THE CYCLICAL AREA DUE TO GREATER PRICING FLEXIBILITY HE SAID WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 015 POINT TO 10382 STOCKS DECLINED VOLUME TOTALED 3029 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1148 ISSUES FELL AND 789 ROSE BOND PRICES WERE UNCHANGED THE YIELD OF THE TREASURY'S BENCHMARK 30YEAR ISSUE HELD AT 674 THE DOLLAR SLIPPED IN LATE NEW YORK TRADING THE CURRENCY WAS AT 15959 MARKS AND 10993 YEN COMPARED WITH 15995 MARKS AND 11071 YEN LATE WEDNESDAY 9304230170 930423 REALTY RIVALS JE ROBERT AMRESCO PLAN TO MERGE ALEXANDRIA VA TWO COMPETITORS IN THE BURGEONING BUSINESS OF MANAGING TROUBLED REAL ESTATE PLAN TO MERGE THEIR COMPANIES TO STRENGTHEN THEIR INDUSTRY POSITIONS JE ROBERT COS WHICH MANAGES AND INVESTS IN DISTRESSED LOANS AND PROPERTIES HAS SIGNED A LETTER OF INTENT TO JOIN FORCES WITH AMRESCO DINGS INC DALLAS WHICH DOES SIMILAR WORK THE NEW COMPANY WOULD BE THE LARGEST THIRDPARTY REAL ESTATE ASSET MANAGER IN THE COUNTRY BY A SIGNIFICANT AMOUNT SAID JAMES HARMON CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF WERTHEIM SCHRODER & CO THE NEW YORK INVESTMENT BANK REPRESENTING JE ROBERT JE ROBERT MANAGES ABOUT 10 BILLION IN NONPERFORMING LOANS AND FORECLOSED PROPERTIES FOR BANKS THRIFTS INSURANCE COMPANIES AND THE RESOLUTION TRUST CORP ITS LARGEST CLIENT IT HAS ALSO INVESTED IN PORTFOLIOS WITH SUCH PARTNERS AS GOLDMAN SACHS & CO THE BLACKSTONE GROUP AND THE GE CAPITAL UNIT OF GENERAL ELECTRIC CO AMRESCO WAS AN ASSET MANAGEMENT ARM OF NATIONSBANK CORP UNTIL DECEMBER WHEN IT WAS PURCHASED BY CGW SOUTHEAST PARTNERS A LIMITED PARTNERSHIP BASED IN ATLANTA 9304230169 930423 YOUR MONEY MATTERS WEEKEND REPORT INVESTING ABROAD WHY IT'S TIME FOR INVESTORS TO THINK GLOBALLY BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL LONDON EVEN IF YOU DON'T FEEL LIKE TRAVELING RIGHT NOW YOU MIGHT THINK ABOUT SENDING SOME OF YOUR MONEY ABROAD IT'S ONLY LOGICAL PROFESSIONAL INVESTMENT MANAGERS CONTEND EVERY MORNING MILLIONS OF AMERICANS DRINK A CUP OF COFFEE WATCH TELEVISION AND DRIVE TO WORK THE COFFEE PROBABLY COMES FROM SOUTH AMERICA THE TV FROM A JAPANESE OR KOREAN COMPANY AND THERE IS A GOOD CHANCE THE CAR DIDN'T COME FROM DETROIT AMERICANS ALREADY BEHAVE AS CONSUMERS IN A GLOBAL ENVIRONMENT SAYS GARY P BRINSON PRESIDENT OF BRINSON PARTNERS INC A MONEYMANAGEMENT FIRM IN CHICAGO THEY SHOULD DO THE SAME WITH THEIR INVESTMENTS AND NOW MAY BE AN ESPECIALLY GOOD TIME TO GET STARTED SO FAR THIS YEAR THE DOW JONES WORLD STOCK INDEX MINUS THE US IS UP 2127 MEASURED IN DOLLARS THAT COMPARES WITH JUST 388 FOR THE DOW JONES INDUSTRIAL AVERAGE AND 086 FOR THE STANDARD & POOR'S 500STOCK INDEX YOU ARE PROBABLY AT THE BEGINNING OF QUITE A LONG PERIOD DURING WHICH NONUS MARKETS WILL MEANINGFULLY OUTPERFORM US MARKETS SAYS NICK CARN CHIEF INVESTMENT OFFICER AT DRAYCOTT PARTNERS LTD IN LONDON IN EUROPE INTEREST RATES HAVE JUST BEGUN TO FALL OVER THE LAST SIX MONTHS AND THE BIGGEST INTERNATIONAL MARKET JAPAN ABOUT A THIRD OF TOTAL WORLD MARKET CAPITALIZATION IS WORTH HALF ITS ALLTIME HIGH INVESTING ABROAD DOES INVOLVE SPECIAL RISKS CURRENCY SWINGS FOR INSTANCE CAN MORE THAN WIPE OUT THE GAINS ON FOREIGN INVESTMENTS WHEN THOSE GAINS ARE CONVERTED INTO US DOLLARS GETTING THE INFORMATION AN INVESTOR NEEDS TO MAKE AN INTELLIGENT DECISION ABOUT FOREIGN COMPANIES IS OFTEN DIFFICULT MOST FOREIGN COMPANIES AREN'T SUBJECT TO THE DETAILED REPORTING REQUIREMENTS IMPOSED ON US CONCERNS AND ACCOUNTING STANDARDS DIFFER FROM COUNTRY TO COUNTRY MOREOVER DAZZLING RETURNS CERTAINLY AREN'T GUARANTEED INDEED IN EACH OF THE PAST FOUR YEARS MORGAN STANLEY CAPITAL INTERNATIONAL'S EUROPE AUSTRALASIA FAR EAST EAFE INDEX OF 20 FOREIGN STOCK MARKETS UNDERPERFORMED THE S&P'S 500STOCK INDEX SO MOST INVESTORS WHO VENTURED OUTSIDE THE US WEREN'T REWARDED SAYS ANNE M TATLOCK EXECUTIVE VICE PRESIDENT IN CHARGE OF INSTITUTIONAL GLOBAL EQUITY INVESTMENT AT FIDUCIARY TRUST CO INTERNATIONAL IN NEW YORK BUT WHAT GOES AROUND EVENTUALLY COMES AROUND IN THE PRECEDING SIX YEARS SHE SAYS EAFE SIGNIFICANTLY OUTPERFORMED THE US STOCK MARKET MS TATLOCK ALSO NOTES THAT CURRENCY SWINGS CAN BE AN OPPORTUNITY AS WELL AS A RISK WHILE A RISING DOLLAR REDUCES THE VALUE OF FOREIGN INVESTMENTS WHEN THEY ARE CONVERTED INTO US CURRENCY A WEAKENING DOLLAR INCREASES THEIR VALUE PERHAPS MOST IMPORTANT FROM THE STANDPOINT OF LONGTERM INVESTORS HOWEVER ADDING FOREIGN STOCKS TO A PORTFOLIO COMPRISED EXCLUSIVELY OF US SECURITIES IS ACTUALLY A CONSERVATIVE MOVE ACADEMIC STUDIES SHOW THAT BY INVESTING A PORTION OF THEIR PORTFOLIO IN FOREIGN STOCKS AMERICANS OVER THE LONG TERM CAN ACHIEVE HIGHER RETURNS WITH REDUCED RISK AND LESS VOLATILITY THAT IS BECAUSE DIFFERENT ECONOMIES AREN'T PERFECTLY SYNCHRONIZED ONE COUNTRY MAY BE GROWING WHILE ANOTHER IS SLOWING THE SAME APPLIES TO STOCK MARKETS MARKETS TEND TO MOVE IN COUNTERCYCLICAL WAYS SAYS MR BRINSON WHEN THE US MARKET ISN'T DOING SO WELL THE FOREIGN MARKETS MAY RISE AND VICE VERSA HE RECOMMENDS THAT 20 TO 35 OF A PERSON'S STOCK HOLDINGS BE DEVOTED TO FOREIGN MARKETS THE CASE FOR GETTING STARTED NOW HINGES PARTLY ON THE OUTLOOK FOR US STOCKS AS MS TATLOCK SEES IT THERE IS OPPORTUNITY BUT YOU ARE PAYING FOR IT WITH COMPANIES TRADING AT ROUGHLY 16 TIMES THEIR PROJECTED 1993 EARNINGS SHE SAYS THE US STOCK MARKET ALREADY HAS FACTORED IN LOW INFLATION RENEWED CONFIDENCE IN AN ECONOMIC RECOVERY AND A SOLID IMPROVEMENT IN CORPORATE PROFITS MEANWHILE SHE ARGUES FEARS OF RENEWED INFLATION AND HIGHER RATES ARE ACTING AS A CHECK ON US STOCK PRICES SHE ALSO CONTENDS THAT THE CLINTON ADMINISTRATION'S INCLINATION TOWARD MORE REGULATION OF INDUSTRY COULD HARM CORPORATE PROFITS ROBERT HABER OF FIDELITY INVESTMENTS IN BOSTON IS EVEN MORE BLUNT THE US MARKET IS INCREDIBLY OVERPRICED I DON'T DISAGREE WITH THE THOUGHT THAT PEOPLE SHOULD HAVE A LARGE PORTION OF THEIR MONEY IN EQUITIES BUT THAT DOESN'T MEAN IT HAS TO BE IN THE S&P 500 MORE THAN 30 OF THE 3 BILLION HE MANAGES IS INVESTED IN FOREIGN MARKETS UP FROM LESS THAN 10 A YEAR AGO SO WHICH FOREIGN MARKETS DO INVESTMENT PROFESSIONALS THINK OFFER THE BEST BETS NOW CONTINENTAL EUROPE IS AT THAT WONDERFUL STAGE FOR EQUITIES IT IS IN RECESSION GOVERNMENTS ARE AWARE OF IT AND THEY ARE IN A RACE TO LOWER INTEREST RATES SAYS MR HABER JUST YESTERDAY GERMANY'S CENTRAL BANK CUT ITS KEY LENDING RATES PROMPTING SIMILAR MOVES IN AUSTRIA BELGIUM DENMARK AND ITALY OVER THE LAST FEW WEEKS THE FRENCH HAVE ALSO BEEN NUDGING INTEREST RATES LOWER NEARLY EVERYBODY'S FAVORITE MARKET IS FRANCE A COUNTRY WITH A TRADE SURPLUS LOW INFLATION AND HIGH INTEREST RATES THAT HAVE A LONG WAY TO FALL PROFITS THERE COULD BE REALLY HIGH AFTER 1994 AND THE DANGER OF A DEVALUATION OF THE FRENCH FRANC IS COMING DOWN AS TIME GOES BY SAYS ROLF BILAND AN ASSET MANAGER AT CREDIT SUISSE IN ZURICH MR HABER POINTS OUT THAT THE CONTINUING INTEGRATION OF EASTERN AND WESTERN GERMANY CREATES SELLING OPPORTUNITIES FOR FRENCH COMPANIES AND AN INVESTMENT PLAY FOR PEOPLE WHO BUY THEIR SHARES YOU GET TO PARTICIPATE IN ALL THE GROWTH OF GERMANY WHEN IT REBOUNDS WITHOUT HAVING TO PAY FOR ALL THE SOCIAL COSTS OR THE TAX BILL MR HABER ALSO FINDS THE SPANISH STOCK MARKET INTERESTING BY SEVERAL MEASURES IT IS RANKED AS THE LEAST EXPENSIVE OF 20 MAJOR WORLD STOCK MARKETS BY THE LEUTHOLD GROUP THE RESEARCH DIVISION OF WEEDEN & CO SPAIN HAS ENORMOUSLY HIGH INTEREST RATES THAT HAVE TO COME DOWN HIGH UNEMPLOYMENT AND CHEAP STOCKS SAYS MR HABER THAT'S A GOOD COMBINATION BUT OTHERS FEAR THAT LATER THIS YEAR SPAIN MIGHT BE FORCED TO DEVALUE THE PESETA WHICH WOULD REDUCE THE DOLLAR VALUE OF AN AMERICAN'S INVESTMENT THERE MR BRINSON ALSO IS PLAYING THE FALLINGINTEREST RATE THEME IN EUROPE IF INTEREST RATES CONTINUE TO DECLINE INVESTORS MIGHT MISS OUT IF THEY CONTINUE TO WAIT FOR AN ECONOMIC RECOVERY JUST AS THEY WOULD HAVE MISSED OUT IF THEY STAYED AWAY FROM US STOCKS WHILE WAITING FOR THE ECONOMIC RECOVERY HE SAYS MR CARN OF DRAYCOTT PARTNERS PREFERS BRITISH AND SCANDINAVIAN STOCKS TO THOSE MARKETS UNDER THE DIRECT INFLUENCE OF GERMAN MONETARY POLICY GERMANY THE NETHERLANDS FRANCE AND BELGIUM WE THINK THAT EARNINGS ARE A BIGGER DRIVER OF EUROPEAN STOCK MARKETS THAN INTEREST RATES HE SAYS AND THIS YEAR'S PROFITS OUTLOOK FOR THOSE FOUR MARKETS STINKS JAPAN THE WORLD'S SECOND BIGGEST STOCK MARKET IS A CONUNDRUM TO MANY MONEY MANAGERS IT IS UP 1719 SO FAR THIS YEAR EVEN MORE IN DOLLAR TERMS SKEPTICAL MR BRINSON FEELS THAT THE GOVERNMENTDICTATED BUYING THAT ACCOUNTED FOR MUCH OF THE RALLY IS A SMOKESCREEN FOR SERIOUS PROBLEMS IN THE BANKING SYSTEM THAT HAVE YET TO BE ADDRESSED FIDELITY'S MR HABER FIDUCIARY'S MS TATLOCK AND MR CARN ARE MORE BULLISH CONCEDING THAT JAPANESE SHARES COULD RETREAT SOME MR CARN NONETHELESS POINTS OUT THAT IN THE LATE 1980S JAPAN WAS INVESTING ABOUT 25 OF ITS TOTAL OUTPUT OF GOODS AND SERVICES UNLESS YOU THINK THAT MONEY HAS BEEN SUBSTANTIALLY WASTED IT'S REASONABLE TO ASSUME IT WILL ACCRUE TO THE BENEFIT OF SHAREHOLDERS AT SOME STAGE HE SAYS WHEN SCOURING THE WORLD INVESTORS OFTEN OVERLOOK SOME OF THE INDUSTRIAL WORLD'S SMALLER STOCK MARKETS SUCH AS BELGIUM WHICH LIVES IN THE SHADOW OF FRANCE AND CANADA WHICH ALTHOUGH ECLIPSED BY THE US IS THE WORLD'S SIXTH LARGEST STOCK MARKET MR BRINSON THINKS THAT'S A MISTAKE TWO SMALLER MARKETS HE LIKES ARE AUSTRALIA AND NEW ZEALAND THEY AREN'T VERY POPULAR THEY ARE OVER ON THE OTHER SIDE OF THE WORLD AND TEND TO GET IGNORED HE CONCEDES BUT HE ADDS THEIR LEVEL OF ECONOMIC ACTIVITY HAS BEEN DEPRESSED INTEREST RATES HAVE COME DOWN AND STOCK PRICES THERE HAVEN'T REFLECTED THE DECLINE IN RATES AND WE FEEL PEOPLE ARE TOO PESSIMISTIC ABOUT THE ECONOMIC OUTLOOK HONG KONG BY CONTRAST FRIGHTENS SOME MONEY MANAGERS MR CARN OF DRAYCOTT THINKS IT IS TOO SPECULATIVE MR BRINSON AGREES ANYBODY INVESTING THERE NEEDS TO GO IN WITH THEIR EYES OPEN HE SAYS YOU AREN'T ONLY DEALING WITH ECONOMIC FACTORS BUT AN IMPORTANT SET OF POLITICAL CHARACTERISTICS AS WELL 9304230168 930423 FUNDS OFFER A WORLD OF CHOICES HOW TO PICK THE RIGHT ONE BY JOHNATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL MUTUAL FUNDS ARE OFTEN THE BEST WAY FOR AMERICAN INVESTORS TO TAP INTO FOREIGN MARKETS AND MANY FUND ANALYSTS ARGUE THAT NOW IS A GREAT TIME TO MOVE MONEY ABROAD BUT BEFORE YOU RUSH TO BUY A FOREIGNSTOCK FUND CONSIDER ONE PROBLEM ANALYSTS VEHEMENTLY DISAGREE ON WHICH MUTUAL FUNDS ARE THE BEST BET DON PHILLIPS FOR INSTANCE FAVORS FUNDS THAT SPECIALIZE IN EUROPEAN STOCKS THE VALUE INVESTORS WHO ARE GOING ABROAD ARE TENDING TO GO TO EUROPE NOTES MR PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER IT'S A MUCH MORE SUSTAINABLE RALLY IT'S NOT STARTING FROM SUCH A PERILOUS LEVEL IN TERMS OF VALUE LIKE THE JAPANESE RALLY THAT'S NOT THE WAY LEWIS ALTFEST SEES IT EUROPE IS CHEAPER ON A PRICE/EARNINGS RATIO BASIS THAN EITHER THE US OR JAPAN CONCEDES MR ALTFEST PRESIDENT OF LJ ALTFEST & CO A MANHATTAN INVESTMENT ADVISER BUT IT'S ALWAYS TENDED TO BE CHEAPER THAN ASIA BECAUSE IT'S NOT GROWING SO RAPIDLY I HAVE TILTED HEAVILY TOWARDS JAPAN BY INVESTING IN THE JAPAN FUND MANAGED BY SCUDDER STEVENS & CLARK WHO'S RIGHT ROBERT BINGHAM ISN'T WILLING TO GUESS INSTEAD HE'S TAKING THE FENCESITTER'S OPTION BY BUYING BROADLY DIVERSIFIED FUNDS SUCH AS HARBOR INTERNATIONAL FUND T ROWE PRICE INTERNATIONAL STOCK FUND AND SCUDDER INTERNATIONAL FUND ALL THREE ARE NOLOAD FUNDS WHICH MEANS THEY CAN BE BOUGHT WITHOUT PAYING A SALES COMMISSION THESE DAYS WE'RE IN BOTH EUROPE AND JAPAN SAYS MR BINGHAM AN INVESTMENT ADVISER WITH SAN FRANCISCO'S BINGHAM OSBORN & SCARBOROUGH UNLESS WE FEEL THERE'S A MARKET THAT IS JUST TOTALLY OUT OF WHACK WE WILL TEND TO LEAVE THE ALLOCATION DECISION TO THE FUND MANAGERS THEY'RE STUDYING THE MARKETS EVERY DAY SO THEY SHOULD BE BETTER AT PICKING THE REGIONS THAN US THE BIGGEST GAINS SO FAR THIS YEAR HAVE GONE TO THOSE WHO HAVE BET ON JAPAN MUTUAL FUNDS THAT BUY ONLY JAPANESE STOCKS HAVE BEEN 1993'S HOTTEST MUTUAL FUND PERFORMERS SOARING 303 IN THE YEAR THROUGH APRIL 15 ACCORDING TO FUND RESEARCHERS LIPPER ANALYTICAL SERVICES ROUGHLY A THIRD OF THAT INCREASE IS ATTRIBUTABLE TO THE DOLLAR'S DECLINE AGAINST THE YEN WHICH RAISES THE VALUE OF JAPANESE INVESTMENTS WHEN THEY ARE CONVERTED INTO DOLLARS MEANWHILE PACIFIC BASIN FUNDS HAVE GAINED 166 BROADLY DIVERSIFIED INTERNATIONAL FUNDS HAVE CLIMBED 13 AND EUROPEAN SPECIALTY FUNDS HAVE RETURNED JUST 73 CHARLES CAIN PRESIDENT OF NEW YORK'S CAIN ASSET MANAGEMENT CORP IS BETTING THAT JAPAN FUNDS WILL CONTINUE TO SOAR IN LATE MARCH HE STARTED MOVING INTO NOLOAD FUNDS SUCH AS FIDELITY JAPAN FUND T ROWE PRICE JAPAN FUND AND SCUDDER'S JAPAN FUND THE THING THAT REALLY BEGAN TO ATTRACT US IS THE RELATIVE STRENGTH OF THE NIKKEI STOCK INDEX AND OF JAPANESE FUNDS SAYS MR CAIN IT APPEARS THAT THE JAPANESE MARKET IS BEGINNING TO BREAK OUT DISCOUNTING THE EASING OF MONETARY POLICY AND THE STIMULUS PACKAGE THAT THE JAPANESE GOVERNMENT HAS JUST ANNOUNCED CHICAGO NEWSLETTER EDITOR GERALD PERRITT HAS SOME JAPANESE EXPOSURE BUT HIS BIGGEST BET IS ON EUROPE I REALLY LIKE EUROPE SAYS MR PERRITT EDITOR OF THE MUTUAL FUND LETTER I LIKED IT WHEN I WAS LOSING MONEY AND I STILL LIKE IT TODAY MR PERRITT SUGGESTS BUYING FINANCIAL FUNDSEUROPEAN PORTFOLIO A NOLOAD FUND MANAGED BY DENVER'S INVESCO FUNDS GROUP YOU HAVE TO SEE EUROPE AS THE US BUT AT A TWOYEAR LAG HE SAYS YOU'RE LOOKING AT LATE 1993 AND EARLY 1994 BEFORE THE RECESSION IS TRULY OVER BUT YOU'VE GOT TO BE THERE BEFORE THE RECESSION IS OVER BECAUSE STOCKS TEND TO MOVE ANYWHERE FROM ONE MONTH TO NINE MONTHS BEFORE THE END OF A RECESSION THOSE WHO BET SOLELY ON JAPAN OR SOLELY ON EUROPE AND GET IT RIGHT ARE LIKELY TO BE THE BIG WINNERS IN THE YEARS AHEAD BUT MOST INVESTORS SHOULDN'T TRY TO PICK COUNTRIES OR REGIONS SAYS KENNETH GREGORY EDITOR OF THE NOLOAD FUND ANALYST A SAN FRANCISCO NEWSLETTER INSTEAD HE THINKS INVESTORS SHOULD BUY WELLMANAGED INTERNATIONAL FUNDS AND LEAVE THE COUNTRY ALLOCATION UP TO THE FUND MANAGER I WOULD TEND TO LOOK AT OTHER FACTORS FIRST LIKE THE FUND'S TRACK RECORD BEFORE I SECOND GUESS THE FUND'S COUNTRY ALLOCATION SAYS MR GREGORY FOR MOST INVESTORS INVESTING IN A BROADLY DIVERSIFIED FUND MAKES MORE SENSE THAN OWNING REGIONAL FUNDS OR COUNTRY FUNDS MR GREGORY RECOMMENDS HARBOR INTERNATIONAL FUND AND WARBURG PINCUS INTERNATIONAL EQUITY FUND BUT EVEN IF YOU BUY A BROADLY DIVERSIFIED FUND YOU SHOULD CHECK TO SEE THAT THE FUND REALLY IS INVESTED IN A BROAD ARRAY OF MARKETS SOME INTERNATIONAL FUNDS HAVE ONLY MODEST JAPANESE EXPOSURE WHICH MEANS THEY COULD BE LEFT BEHIND IF JAPAN CONTINUES TO SURGE WHILE EUROPEAN MARKETS POST MORE MODEST GAINS FOR INSTANCE WHILE MOST INTERNATIONAL FUNDS HAVE 20 TO 30 OF THEIR ASSETS INVESTED IN JAPAN THE TEMPLETON FUNDS ONLY OWN A COUPLE OF JAPANESE STOCKS SIMILARLY AS OF ITS NOVEMBER 1992 ANNUAL REPORT TWENTIETH CENTURY INTERNATIONAL EQUITY HAD JUST 28 OF ITS ASSETS IN JAPAN AND EVEN HARBOR INTERNATIONAL THE TOPPERFORMING FUND FAVORED BY MANY FUND ANALYSTS HAS KEPT ITS JAPANESE STOCK POSITION TO A MERE 76 IF I WAS AN INVESTOR OUT THERE WHO WAS GETTING INTO INTERNATIONAL FOR THE FIRST TIME I WOULD CALL THE FUND TO GET THE COUNTRY ALLOCATIONS SAYS MR BINGHAM THE SAN FRANCISCO INVESTMENT ADVISER WITH MOST OF THE MAJOR FUNDS AND HARBOR IS PROBABLY THE EXCEPTION I THINK YOU WOULD FIND THAT BOTH JAPAN AND EUROPE ARE WELL REPRESENTED IF I FOUND ONE OF THE MAJOR MARKETS WASN'T IN THERE THAT WOULD GIVE ME PAUSE FOR THOUGHT MR BINGHAM SAYS THAT FOR HIS CLIENTS HE TYPICALLY RECOMMENDS BUYING TWO INTERNATIONAL FUNDS A CLIENT MIGHT FOR INSTANCE OWN BOTH T ROWE PRICE INTERNATIONAL WHICH SPREADS ITS ASSETS AMONG A HOST OF DIFFERENT COUNTRIES AND HARBOR INTERNATIONAL WHICH MAKES BIGGER BETS ON PARTICULAR MARKETS IT'S QUITE POSSIBLE OF COURSE THAT JAPAN AND EUROPE WILL DO WELL IN THE YEARS AHEAD FOR THAT REASON INVESTORS SHOULD PROBABLY MAKE CERTAIN THEY GET AT LEAST SOME FOREIGNSTOCK EXPOSURE EVEN IF THEY DON'T END UP BUYING THE BEST POSSIBLE FUND YOU'VE GOT TO LIKE INTERNATIONAL RIGHT NOW SAYS MR PERRITT THE NEWSLETTER EDITOR YOU HAVE A CHANCE TO DOUBLE YOUR MONEY OVER THE NEXT 36 MONTHS SEE RELATED ARTICLE YOUR MONEY MATTERS WEEKEND REPORT INVESTING ABROAD WHY IT'S TIME FOR INVESTORS TO THINK GLOBALLY WSJ APRIL 23 1993 9304230167 930423 JAPANESE OFFSET US LIMITS ON BEEF FROM AUSTRALIA BRISBANE AUSTRALIA INCREASING DEMAND FOR AUSTRALIAN BEEF FROM JAPAN IS OFFSETTING THE EFFECT OF US MEAT IMPORT RESTRICTIONS ACCORDING TO JOHN GRIFFITH MANAGING DIRECTOR OF AUSTRALIAN AGRICULTURAL CO A MAJOR SUPPLIER OF BEEF FOR EXPORT FROM QUEENSLAND STATE MR GRIFFITH SAID JAPAN REPLACED THE US AS THE LARGEST CUSTOMER FOR AUSTRALIAN BEEF DURING THE JANUARYMARCH QUARTER IT IS THE FIRST TIME JAPAN BOUGHT MORE AUSTRALIAN BEEF THAN THE US HE SAID A SWING IN JAPANESE CONSUMER DEMAND TO CHEAPER LOWER QUALITY CUTS PARTICULARLY FROZEN HAMBURGERSTYLE MEAT FROM PREMIUM QUALITY BEEF IS LIFTING IMPORTS OF AUSTRALIAN BEEF IN THE JANUARYMARCH QUARTER AUSTRALIA EXPORTED 56000 METRIC TONS OF BEEF TO JAPAN 5000 TONS MORE THAN WAS SHIPPED TO THE US AND A 46 INCREASE OVER SHIPMENTS TO JAPAN IN THE YEAREARLIER QUARTER AUSTRALIAN BEEF PRODUCERS ARE PLACING GREATER EMPHASIS ON BEEF EXPORTS TO JAPAN AND OTHER ASIAN CUSTOMERS BECAUSE OF US MEAT IMPORT RESTRICTIONS THE AUSTRALIAN BEEF INDUSTRY IS SUFFERING FROM SEVERE DROUGHT IN THE CENTRAL EASTERN CATTLE FARMING REGIONS WHICH IS DEPRESSING DOMESTIC BEEF PRICES FARMERS IN THE DROUGHTSTRICKEN AREAS ARE BEING FORCED TO SLAUGHTER THEIR HERDS PUSHING UP TOTAL BEEF SUPPLY THE SITUATION HAS BEEN WORSENED BY THE US RESTRICTIONS WHICH HAVE BEEN IMPOSED ON AUSTRALIAN BEEF EXPORTERS SINCE 1990 9304230166 930423 THERE'S NO BUSINESS LIKE SNOW BUSINESS IN A PERIOD OF THAW SPRING IS ONE THING BUT END OF COLD WAR IS REAL THREAT TO ADVANCED FLAKE STUDIES BY OSCAR SURIS STAFF REPORTER OF THE WALL STREET JOURNAL HOUGHTON MICH RUSSELL ALGER CHAINSMOKES HE DRINKS TOO MUCH COFFEE HIS DOCTOR THINKS HE MAY BE SUFFERING FROM AN ULCER THIS CAN HAPPEN WHEN YOU STUDY SNOWFLAKES IN THE SPRING IT CAN GET A LITTLE NERVERACKING SAYS MR ALGER DIRECTOR OF THE INSTITUTE FOR SNOW RESEARCH HERE IN MICHIGAN'S UPPER PENINSULA I THINK IT SNOWED THREE OR FOUR INCHES ON SATURDAY BUT WE'RE BACK IN THE LAB HE SAYS REFERRING TO THE INSTITUTE'S GIANT WALKIN FREEZER WE WILL PROBABLY KEEP TESTING IN HERE ALL SUMMER LONG THIS URGENCY ISN'T JUST A MATTER OF AIR TEMPERATURE THE INSTITUTE LIKE OTHER ORGANIZATIONS AROUND THE WORLD DEVOTED TO ADVANCED SNOW STUDIES HAS BEEN HIT HARD BY THE GEOPOLITICAL THAW DURING THE COLD WAR SNOW WAS HOT THE US MILITARY HAD TO BE PREPARED TO FIGHT IN SUBARCTIC CLIMATES SO IT GLADLY FUNDED RESEARCH IN LABORATORIES LIKE MR ALGER'S THE ARMY COULDN'T AFFORD TO HAVE 70TON M1 TANKS GETTING STUCK IN SNOW A DEVILISHLY COMPLEX SUBSTANCE SNOWFLAKES THOUGH MADE UP OF WATER ACTUALLY BEHAVE MORE LIKE CRYSTALS FOUND IN METAL ORES WHICH WHEN MELTED FUSE TOGETHER TO FORM SOLIDS THE PROCESS KNOWN AS SINTERING CAN TURN THE FLUFFIEST PILE OF SNOW INTO A BANK DENSE ENOUGH TO STOP THE HEAVIEST VEHICLE NOW THE BIG THREAT IS SAND SAYS MR ALGER ALLUDING TO THE PERSIAN GULF WAR THE INSTITUTE'S PARKING LOT STILL LOOKS LIKE AN ARMYSURPLUS AUCTION OFTEN FILLED WITH MK48 TRUCKS M60 TANKS AND D7 BULLDOZERS BUT THE MILITARY PORTION OF THE INSTITUTE'S BUDGET HAS SHRUNK TO 20 FROM 75 OVER THE PAST FIVE YEARS SO THE 33YEAROLD MR ALGER AND HIS COLLEAGUES HERE ARE RACING TO DEVELOP NONVIOLENT APPLICATIONS FOR SNOWFLAKE RESEARCH INSTEAD OF HELPING THE PENTAGON SPOT SNOW AT NIGHT WITH INFRARED SENSORS THEY ARE OFFERING THEIR EXPERTISE TO SNOWMOBILE MANUFACTURERS TIRETREAD DESIGNERS AND MAKERS OF DEICING CHEMICALS THEIR CHIEF PROJECT THE ULTIMATE SNOW GROOMER A MACHINE THAT WILL BE TO SNOW WHAT THE ZAMBONI IS TO ICE THEY HOPE THE STATE OF MICHIGAN HOPING TO ATTRACT SADDLESORE SNOWMOBILERS FROM OTHER STATES HAS PAID MR ALGER'S INSTITUTE 90000 TO FIGURE OUT HOW SNOW TRAILS CAN BE KEPT SMOOTH AND HARD MR ALGER HAS SPENT TWO YEARS WORKING ON A PROTOTYPE UNLIKE MOST GROOMERS ON THE MARKET TODAY MR ALGER'S MACHINE DOES FAR MORE THAN SMOOTH SNOW IT TILLS IT WITH VERTICALLY MOUNTED DISCS IT SMASHES IT WITH SPINNING BLADES THEN IT STRAINS IT THROUGH A ROTATING POROUS CYLINDER THAT TRANSFORMS LUMPY NUGGETS OF SNOW INTO VELVETY COATS OF FINE WHITE CRYSTALS WHEN I SEE THAT WHITE POWDER I GET PUMPED UP SAYS MR ALGER WHO GAVE A LECTURE ON HIS PROTOTYPE GROOMER IN FEBRUARY BEFORE AN INTRIGUED GATHERING OF THE INTERNATIONAL ASSOCIATION OF SNOWMOBILE ADMINISTRATORS IN ALPINE WYO THERE IS A HITCH MR ALGER ISN'T QUITE SURE IF HIS DREAM MACHINE WILL BE ABLE TO PLOW THROUGH WET SNOW TO SUCCEED THE GROOMER MUST BE CAPABLE OF PASSING THROUGH SNOW OF EVERY POSSIBLE CONSISTENCY BUT SNOW IS SO COMPLICATED THAT GENERATIONS OF SCHOLARS HAVE BEEN FRUSTRATED TRYING TO UNDERSTAND HOW IT BEHAVES SNOW IS VERY CLOSE TO CERAMICS SAYS KAZUHIKO KAZ ITAGAKI A RENOWNED SNOW SCHOLAR WHO STARTED WORKING ON THE PROBLEM 40 YEARS AGO AT THE UNIVERSITY OF HOKKAIDO'S INSTITUTE FOR LOW TEMPERATURE SCIENCE ONCE HE THOUGHT SNOWFLAKES BEHAVED IN A RANDOM FASHION BONDING TO ONE ANOTHER WITH NO DISCERNIBLE PATTERN NOW HE IS CONVINCED THAT SUCH A NOTION IS PREPOSTEROUS TO THE UNTRAINED EYE IT LOOKS RANDOM BUT IT IS NOT REALLY RANDOM THERE ARE SOME DEVIATIONS TO THE RANDOMNESS SAYS DR ITAGAKI WHO TODAY WORKS FOR THE US RESEARCH AND ENGINEERING LAB IN HANOVER NH WHERE MUCH OF THE MILITARY'S SNOWRELATED RESEARCH ORIGINATED FRACTALS FOR CRYSTALS DR ITAGAKI CURRENTLY IS DELVING INTO SNOW'S ESSENCE BY TINKERING WITH FRACTAL EQUATIONSMATHEMATICAL MODELS USED BY SCIENTISTS TO SPOT STRUCTURAL PATTERNS IN WHAT APPEAR TO BE RANDOM EVENTS HE BELIEVES THIS MAY ONE DAY YIELD A PRECISE WAY OF DESCRIBING A SNOW SAMPLE'S STRENGTH THERMAL PROPERTIES AND CRYSTAL STRUCTURE TO DESCRIBE THE STRENGTH OF SNOW FROM A NUMERIC PERSPECTIVE DR ITAGAKI SAYS WISTFULLY THAT IS THE MOST BASIC APPROACH STUDYING SNOW WAS SIMPLE ONCE IN THE 1930S AND 1940S SNOW RESEARCHERS WERE A LOT LIKE BIRD WATCHERS SPENDING MOST OF THEIR TIME SPOTTING AND CATALOGING MORE THAN 70 DIFFERENT TYPES OF FLAKE SUCH AS THE CLASSIC DENDRITIC CRYSTAL NOW A STAPLE HOLIDAY DECORATION IN ELEMENTARY SCHOOLS ACROSS THE NATION BUT THEN CAME DER SCHNEE UND SEINE METAMORPHOSE A MILESTONE TEXT PUBLISHED IN ENGLISH UNDER THE TITLE SNOW AND ITS METAMORPHISM WRITTEN IN THE 1950S BY HENRI BADER OF THE SWISS SNOW AND AVALANCHE INSTITUTE THE BOOK BECAME TO SNOW WHAT MASTERS AND JOHNSON LATER BECAME TO SEX IT ESSENTIALLY GAVE THE BASICS OF HOW SNOW METAMORPHOSES OR CHANGES AFTER IT REACHES THE GROUND RECALLS ALBERT WUORI A CONSULTANT TO MR ALGER'S INSTITUTE WHO FIRST STUDIED SNOW IN 1955 AS A CIVIL ENGINEER FOR THE MILITARY MR WUORI SAYS DR BADER'S BOOK WAS THE FIRST TO SHOW THE WORLD THAT SNOWFLAKES DO A LOT MORE THAN MELT THEY ACTUALLY EVOLVE CONTINUOUSLY FROM THE MOMENT OF THEIR CONCEPTION THAT REVELATION LED ARMY ENGINEERS TO CONCLUDE THAT IF THEY COULD ANTICIPATE HOW SNOWFLAKES RESPONDED TO VARIABLES SUCH AS HEAT OR WIND THEY MIGHT BE ABLE TO DESIGN TRUCKS AND TANKS THAT COULD BETTER HANDLE THE SNOWS OF ALASKA GREENLAND OR MORE IMPORTANT THE SOVIET UNION BUT AFTER DECADES OF RESEARCH SCIENTISTS ARE STILL PERPLEXED ASK DREW PILANT A MICHIGAN TECHNOLOGICAL UNIVERSITY GRADUATE STUDENT WORKING ON A NATIONAL AERONAUTICS AND SPACE ADMINISTRATION FELLOWSHIP HE HAS SPENT MONTHS BOUNCING MICROWAVES OFF OF SNOW AND READING THEIR REBOUNDING WAVES HOPING THE RESULTS WILL HELP THE SPACE AGENCY DEVELOP A WAY TO TAKE SATELLITE PICTURES OF GLOBAL SNOW COVER SO FAR MR PILANT IS STUMPED FIVE FEET OF WET SNOW CAN GIVE YOU THE SAME ELECTROMAGNETIC SIGNATURE AS 10 FEET OF DRY SNOW HE SAYS WHAT MAKES SNOW SO DANG COMPLICATED IS THAT IT EXISTS SIMULTANEOUSLY AS A SOLID A LIQUID AND A GAS WHICH COMPLICATES THE JOB OF BUILDING THE ULTIMATE GROOMING MACHINE MR ALGER WILL BE WORKING ON IT OVER THE SUMMER HIS RESEARCHERS ARE HURRYING TO STOCKPILE SNOW SAMPLES IN THE INSTITUTE'S FREEZER HIS DREAMS EXTEND BEYOND SNOWMOBILE TRAILS THE FEDERAL GOVERNMENT IS PLANNING TO BUILD AN ANTARCTIC STATION BUT IT CAN'T BE DONE WITHOUT LANDING A HEAVYWHEELED PLANE IN THE SOUTH POLE MR ALGER SAYS MY SNOW GROOMER BECOMES A REAL IMPORTANT PART OF THAT IF I CAN BUILD A BETTER ROADWAY DOWN THERE FINE SNOW HE NOTES BONDS MORE QUICKLY THAN LUMPY SNOW MAKING IT AN EXCELLENT MATERIAL FOR BUILDING SNOW ROADS BUT MAYBE WE NEED TO MIX LARGE AND SMALL CRYSTALS BECAUSE WE ARE LOOKING AT A MATERIAL THAT IS CHANGING ALL OF THE TIME HE SAYS IF I CAN FIGURE OUT SOME KIND OF MIX THEN MAYBE I HAVE SOLVED THE PROBLEM 9304230165 930423 ITOYOKADO CO SAYS SOUTHLAND'S PROBLEMS LED TO LOWER PROFIT SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPANESE SUPERMARKET OPERATOR ITOYOKADO CO SAID CONSOLIDATED PRETAX PROFIT IN THE FISCAL YEAR ENDED FEB 28 SLID 11 TO 18112 BILLION YEN 164 BILLION FROM 20364 BILLION YEN A YEAR EARLIER AN ITOYOKADO OFFICIAL SAID THE DECLINE WAS ALMOST ENTIRELY DUE TO THE 131 MILLION PRETAX LOSS REGISTERED IN 1992 BY ITS SOUTHLAND CORP SUBSIDIARY WHICH OPERATES THE 7ELEVEN CHAIN OF CONVENIENCE STORES TOSHIFUMI SUZUKI PRESIDENT OF ITOYOKADO HAS SAID HE EXPECTS SOUTHLAND TO BREAK EVEN OR RETURN TO PROFITABILITY IN THE CURRENT YEAR ITOYOKADO SAID ITS NET INCOME FELL 12 TO 6481 BILLION YEN FROM 7354 BILLION YEN SALES EDGED UP 38 TO 3035 TRILLION YEN FROM 2923 TRILLION YEN ITOYOKADO FORECAST THAT FOR THE CURRENT FISCAL YEAR IT WOULD SHOW AN 11 INCREASE IN NET INCOME TO 205 BILLION YEN EVEN THOUGH IT EXPECTS SALES TO BE FLAT AT 304 TRILLION YEN PRETAX PROFIT REPRESENTS OPERATING PROFIT PLUS NONOPERATING PROFIT INCLUDING FINANCIAL INCOME AND EXPENSES NET INCOME REPRESENTS PRETAX PROFIT PLUS EXTRAORDINARY GAINS OR LOSSES AND PAYMENTS OF TAXES ITOYOKADO SAID IN A STATEMENT THAT TOUGH ECONOMIC TIMES IN JAPAN WEIGHED ON CONSUMER DEMAND AND HENCE ITS EARNINGS BUT IT SAID IT WAS ABLE TO KEEP UP WITH THE CHANGING NEEDS OF CUSTOMERS OFFERING QUALITY GOODS AT COMPETITIVE PRICES 9304230164 930423 BANCO SANTANDER'S NET RISES 82 MADRID SPAIN'S BANCO SANTANDER REPORTED THAT CONSOLIDATED NET INCOME ROSE 82 TO 2238 BILLION PESETAS 1929 MILLION IN THE FIRST QUARTER FROM 2069 BILLION PESETAS A YEAR EARLIER INTEREST INCOME ROSE 25 TO 19781 BILLION PESETAS INTEREST EXPENSES JUMPED 30 TO 14114 BILLION PESETAS PROVISIONS FOR BAD OR PROBLEM LOANS JUMPED 36 TO 1854 BILLION PESETAS FROM 1368 BILLION PESETAS A YEAR EARLIER SANTANDER SAID 9304230163 930423 LEISURE & ARTS ON SPORTS TALES FROM TWO SIDES OF THE DIAMOND BY FREDERICK C KLEIN THERE'S A NOTION AT LARGE IN THE LAND THAT MAJOR LEAGUE BASEBALL HAS FALLEN DOWN AND MAY NOT BE ABLE TO GET UP PEOPLE ARE UP IN ARMS OVER THE EMPHASIS ON THE DOLLAR IN THE ONETIME NATIONAL PASTIME PROPONENTS OF THIS VIEW SAY PLAYERS HAVE BECOME RICH AND ARROGANT AND TEAM OWNERS RICH TO BEGIN WITH WANT ONLY TO BECOME RICHER JOHN Q FAN TELLS POLL TAKERS HE IS HOLDING HIS NOSE IN DISGUST LEADING TO SPECULATION THAT IT WON'T BE LONG BEFORE OTHER SPORTS BEACH VOLLEYBALL OR SURFING MAYBE WREST AWAY BASEBALL'S SUMMERTIME MANTLE BUT HOW THEN DOES ONE ACCOUNT FOR THE FACT THAT ATTENDANCE AT THIS YEAR'S SPRING TRAINING SET A RECORD THAT 80000 PEOPLE ALL SMILING SHOWED UP FOR THE COLORADO ROCKIES' INAUGURAL OPENING DAY THAT EVERY LARGE US CITY THAT DOESN'T HAVE A MAJOR LEAGUE TEAM IS CLAMORING FOR ONE AND THAT THE VALUE OF EXISTING FRANCHISES EVEN SUCH WOEBEGONE ONES AS THE SEATTLE MARINERS HAS SOARED IT'S ALL VERY CONFUSING THE ISSUE REMAINS CONFUSING EVEN AFTER ONE HAS DIGESTED A FAIR NUMBER OF THE SPRING'S CROP OF BASEBALL BOOKS LIKE THE JOKE THAT DECLARES THE OPPOSITE OF PRO GOLF TO BE ANTIGOLF THE AUTHORS OF SOME OF THE NEW VOLUMES SEE MAJOR LEAGUE BASEBALL'S GLASS AS EITHER HALF FULL OR HALF EMPTY AND GIVE SCANT RECOGNITION TO THE OTHER PORTION THIS YEAR YOU PAYS YOUR MONEY AND TAKES YOUR CHOICE ONE NEED LOOK NO FURTHER THAN ITS TITLE TO LEARN THAT COMING APART AT THE SEAMS HOW BASEBALL OWNERS PLAYERS AND TELEVISION EXECUTIVES HAVE LED OUR NATIONAL PASTIME TO THE BRINK OF DISASTER MACMILLAN 266 PAGES 24 LEADS THE HALFEMPTY BRIGADE AUTHORS PETER GAMMONS THE BASEBALL WRITER AND TELEVISION COMMENTATOR AND SPORTS LAWYER JACK SANDS HOLD THAT BASEBALL'S FRONTOFFICE PRACTICES OF THE PAST SEVERAL DECADES HAVE BEEN ALMOST UNIFORMLY SHORTSIGHTED AND THAT AS A RESULT CATASTROPHE ALBEIT AN UNSPECIFIED ONE IS NEAR WHETHER OR NOT YOU AGREE WITH THEIR CONCLUSION I DON'T GAMMONS AND SANDS PROVIDE A NEAT ACCOUNT OF BASEBALL'S RECENTYEAR BOARDROOM SHENANIGANS APTLY THEY FINGER COMMISSIONERITIS THE DELUSION OF GRANDEUR THAT HAS AFFLICTED EVERY MAN THE TEAM OWNERS HAVE PICKED TO FRONT FOR THEM AS A MAJOR CAUSE OF STRIFE AND POOR POLICY IN THE GAME LESS APT I THINK ARE THEIR PRESCRIPTIONS FOR BASEBALL'S RENEWAL MORE SOCALLED STATEOFTHEART STADIUMS AND EXPANDED INTERNATIONAL PLAY IF THE PRODUCT IS TRULY SPOILED FANCIER CONTAINERS WON'T HELP IT FOR LONG AND BESIDES THE PROTECTIONIST JAPANESE FEW ECONOMICALLY POTENT NATIONS SHARE AMERICA'S BASEBALL PASSION THE LOCKERROOM COUNTERPART OF COMING APART IS THE WORST TEAM MONEY COULD BUY THE COLLAPSE OF THE NEW YORK METS RANDOM HOUSE 281 PAGES 21 BOB KLAPISCH AND JOHN HARPER WHO COVERED THE 1992 METS FOR THE NEW YORK DAILY NEWS AND NEW YORK POST RESPECTIVELY ADMIT THEY WROTE THE TELLALL VOLUME TO GET EVEN WITH THE TEAM THEIR GRIPE ISN'T SO MUCH THAT MOST OF THE '92 METS FIFTHPLACE FINISHERS IN THE NATIONAL LEAGUE EAST DESPITE A FIRSTPLACE PAYROLL OF ABOUT 44 MILLION WERE OVERPAID UNDERACHIEVERS AND GREEDY CHILDISH SELFISH BOORISH AND OFFTHEFIELD WILT CHAMBERLAIN WANNABES TO BOOT IT'S THAT THEY WEREN'T ESPECIALLY QUOTABLE THUS MAKING DIFFICULT THE JOB OF TABLOID REPORTER BUT HEY AT LEAST KLAPISCH AND HARPER ARE UPFRONT ABOUT IT AND THEY'VE WRITTEN A READABLE BOOK ALBEIT A MEANSPIRITED ONE THE NEW YORK TIMES SPORTSWRITER GERALD ESKENAZI WEIGHS IN WITH THE LIP A BIOGRAPHY OF LEO DUROCHER MORROW 336 PAGES 23 WHICH SHOWS THAT MEN WHO ARE GREEDY CHILDISH SELFISH BOORISH AND PROMISCUOUS AREN'T NEW TO BASEBALL LEO THE LIP WHOSE PLAYING AND MANAGING CAREERS SPANNED 50 YEARS ENDING IN 1973 WAS ALL THOSE THINGS AND PERHAPS A THIEF AS WELL ESKENAZI WRITES THAT DUROCHER'S NEW YORK YANKEE TEAMMATES BELIEVED HE STOLE A WATCH FROM BABE RUTH AND A RING FROM LOU GEHRIG BUT THE GUY WHO ALMOST SAID NICE GUYS FINISH LAST ALSO WAS A COLORFUL CHARACTER AND SHARP MANAGER AND ESKENAZI LAYS IT ALL OUT A COUPLE OF ANTIDOTES TO THE ABOVE ARE AVAILABLE PLAY BALL THE LIFE AND TROUBLED TIMES OF MAJOR LEAGUE BASEBALL VILLARD 464 PAGES 2250 BY JOHN FEINSTEIN TOUCHES ON THE GAME'S FINANCIAL FOLLIES BUT FOCUSES MORE ON THE DIAMOND AND SOME OF THE BETTER PEOPLE WHO INHABIT IT IN HIS STROLL THROUGH THE 1992 SEASON FEINSTEIN GIVES US NICE PIECES ON THE LIKES OF UMPIRE BRUCE FROEMMING MANAGERS JIM LEFEBVRE FELIPE ALOU AND CITO GASTON AND PLAYERS GEORGE BRETT AND DAVE STEWART HIS BOOK HOLDS OUR INTEREST EVEN THOUGH WE KNOW HOW IT TURNS OUT AND TO HEAR SLUGGER KIRBY PUCKETT TELL IT IN HIS JOCKOGRAPHY I LOVE THIS GAME MY LIFE AND BASEBALL HARPERCOLLINS 238 PAGES 20 HIS MINNESOTA TWINS TEAMMATES ARE SUCH GREAT SPORTSMEN AND FINE FELLAS THAT HE CAN'T WAIT TO GET TO THE BALLPARK EVERY DAY ABOUT THE ONLY SIN PUCKETT PINS ON HIS FELLOW TWINKIES IS THAT SOME ARE SO ADDICTED TO TV WRESTLING THAT THEY'LL PLAY HOOKY FROM FIELDING PRACTICE TO WATCH ALSO BASEBALL IN THE AFTERNOON TALES FROM A BYGONE ERA SIMON & SCHUSTER 272 PAGES 21 BY ROBERT SMITH IS A LIVELY LOOK AT THE GAME'S FORMATIVE YEARS BY AN 88YEAROLD WHO SAW QUITE A BIT OF THEM FIRSTHAND BASEBALL THE PRESIDENTS' GAME FARRAGUT 224 PAGES 2495 BY THE HISTORIANS AND ANECDOTISTS WILLIAM B MEAD AND PAUL DICKSON REVIEWS HOW US PRESIDENTS BEGINNING WITH GEORGE WASHINGTON HE PLAYED CATCH AT VALLEY FORGE HAVE BRUSHED WITH BASEBALL AND VICE VERSA KEN LEVINE IN IT'S GONE NO WAIT A MINUTE VILLARD 295 PAGES 20 RECOUNTS HOW HE CHUCKED A PRECARIOUS CAREER AS A HOLLYWOOD SCREENWRITER TO FOLLOW HIS HEART AND PURSUE A PRECARIOUS CAREER AS A BASEBALL BROADCASTER THE NINTH EDITION OF THE BASEBALL ENCYCLOPEDIA MACMILLAN 2857 PAGES 55 IS 76 PAGES LONGER THAN THE EIGHTH EDITION AND 228 PAGES LONGER THAN THE LAST FULL ISSUE OF ITS COMPETITOR TOTAL BASEBALL IF THESE THINGS GET MUCH BIGGER YOU'LL NEED A CRANE TO LIFT ONE 9304230162 930423 WHO'S NEWS KIMBERLYCLARK CORP KIMBERLYCLARK CORP DALLAS JOHN W DONEHOWER WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS MAKER OF HOUSEHOLD PERSONALCARE AND HEALTHCARE PRODUCTS AND NEWSPRINT AND SPECIALTY PAPERS MR DONEHOWER 46 YEARS OLD FORMERLY WAS PRESIDENT OF THE COMPANY'S WORLD SUPPORT GROUP HE SUCCEEDS BRENDAN M O'NEILL 55 WHO IS RETIRING ROBERT A BRITTON 42 SUCCEEDS MR DONEHOWER AS PRESIDENT OF WORLD SUPPORT HE FORMERLY WAS VICE PRESIDENT OF THE WORLD SUPPORT GROUP KIMBERLYCLARK ALSO NAMED THOMAS J FALK 34 GROUP PRESIDENT OF ITS INFANT AND CHILD CARE BUSINESSES HE SUCCEEDS RICHARD F AUCHTER 57 WHO IS RETIRING MR FALK PREVIOUSLY WAS SENIOR VICE PRESIDENT OF ANALYSIS AND ADMINISTRATION ROBERT A UNDERHILL 48 THE COMPANY'S SENIOR TECHNICAL OFFICER WAS NAMED SENIOR VICE PRESIDENT 9304230161 930423 NATIONS ACT ON INTELLECTUALPROPERTY ISSUE TAIWAN SOUTH KOREA CHINA RESPOND TO ANNUAL THREAT OF US STEPS A WALL STREET JOURNAL NEWS ROUNDUP THE US RELEASES NEXT FRIDAY ITS ANNUAL LIST OF THE WORLD'S INTELLECTUALPROPERTY PIRATES AND THE USUAL SUSPECTS ARE TAKING LASTMINUTE STABS AT DAMAGE CONTROL TAIWAN SOUTH KOREA AND CHINA ALL REGULARS ON THE LIST ARE PLEDGING TO CLAMP DOWN ON THOSE WHO PLY TRADES SUCH AS PLAGIARIZING COMPUTER SOFTWARE BOOTLEGGING HOLLYWOOD'S NEW RELEASES AND COUNTERFEITING PHARMACEUTICALS BUT OTHERS MOST NOTABLY THAILAND RISK MILLIONS OF DOLLARS IN TRADE SANCTIONS IN WHAT HAS BECOME AN ANNUAL RITUAL FOR SOME GOVERNMENTS FEIGN A CRACKDOWN AS THE LIST DEADLINE LOOMS ONLY TO SLACK OFF LATER WE'RE IN THE ENDGAME SAYS ERIC H SMITH EXECUTIVE DIRECTOR OF THE INTERNATIONAL INTELLECTUAL PROPERTY ALLIANCE A WASHINGTONBASED LOBBY REPRESENTING MEMBERS OF THE US PUBLISHING RECORDING COMPUTERSOFTWARE AND MOTIONPICTURE INDUSTRIES AT LEAST 10 ASIAN GOVERNMENTS WILL BE CITED APRIL 30 INDUSTRY OFFICIALS PREDICT FOR THE MOST PART THE LIST SIMPLY PUTS COUNTRIES ON NOTICE THAT WASHINGTON IS ALARMED AT THEIR POOR SAFEGUARDS AGAINST COUNTERFEITING BUT ANY NATION THAT RECEIVES THE MOST SERIOUS DESIGNATION PRIORITY FOREIGN COUNTRY IS SUBJECT TO AN INVESTIGATION OF SIX TO NINE MONTHS THAT CAN LEAD TO US TRADE SANCTIONS MR SMITH'S ORGANIZATION SAYS THAT PIRACY ALONG WITH PATENT AND TRADEMARK INFRINGEMENT RESULTS IN BILLIONS OF DOLLARS IN TRADE LOSSES ANNUALLY HURTING US PROFITS AND JOB GROWTH HIS CAUSE HAS FOUND SYMPATHY IN THE CLINTON ADMINISTRATION WHICH IS KEEN TO USE ITS POWERS TO ENHANCE US COMPETITIVENESS AND REDUCE AMERICA'S GAPING ANNUAL TRADE DEFICIT WE HAVE MET WITH AMBASSADOR MICKEY KANTOR AND I THINK HE IS GOING TO BE VERY TOUGH MR SMITH SAYS MR KANTOR IS THE US TRADE REPRESENTATIVE THAT POINT HASN'T BEEN LOST ON GOVERNMENTS IN ASIA EARLIER THIS MONTH AFTER YEARS OF US PRESSURE THE PHILIPPINES SIGNED A LANDMARK AGREEMENT PROMISING PROTECTIONS OF COPYRIGHTS TRADEMARKS AND PATENTS BY THE END OF 1994 LIKEWISE CHINA RECENTLY SAID THAT ON APRIL 30 THE SAME DAY THE US LIST IS RELEASED IT WILL BECOME A MEMBER OF AN INTERNATIONAL CONVENTION THAT COMBATS ILLEGAL DUPLICATION OF FOREIGN RECORDINGS ALSO ON THAT DATE IT INTENDS TO BEGIN A CRACKDOWN ON MAKERS OF ILLEGAL RECORDINGS CHINA HAS LONG BEEN A MAJOR PRODUCER OF BOOTLEG RECORDINGS AND OTHER PRODUCTS HOWEVER OVER THE PAST TWO YEARS IT HAS TAKEN STEPS TO PROTECT INTELLECTUALPROPERTY RIGHTS AND HAS JOINED IN SEVERAL MAJOR INTERNATIONAL AGREEMENTS BUT THE BIGGEST CONVERT IS TAIWAN CONSIDERED THE WORST VIOLATOR OF US RIGHTS IN DOLLAR TERMS THE INTERNATIONAL INTELLECTUAL PROPERTY ALLIANCE MR SMITH'S ORGANIZATION ESTIMATES THAT PIRACY THERE COST US COMPANIES 669 MILLION LAST YEAR TAIWAN WAS NAMED A PRIORITY FOREIGN COUNTRY LAST APRIL SUBSEQUENTLY UNDER HEAVY PRESSURE FROM THE BUSH ADMINISTRATION IT SIGNED A BROAD AGREEMENT THAT INCLUDED COMMITMENTS TO PASS SEVERAL PIECES OF LEGISLATION AND A BILATERAL COPYRIGHT TREATY ORIGINALLY SIGNED IN 1989 BUT IN JANUARY TAIWAN LAWMAKERS REVIEWING THE TREATY DECIDED TO REMOVE EIGHT PASSAGES THEY FOUND OBJECTIONABLE THAT BROUGHT AN ANGRY REACTION FROM WASHINGTON WHICH INSISTED THAT TAIWAN APPROVE THE ACCORD WITHOUT ALTERATION OR RISK RETALIATION YESTERDAY HOWEVER LAWMAKERS PASSED THE LEGISLATION CITING THE FACT THAT THEIR COUNTRY'S APPEARANCE ON THE US LIST WAS OTHERWISE IMMINENT THE PARLIAMENT'S APPROVAL SHOULD HELP US AVERT POSSIBLE US TRADE SANCTIONS SAID ECONOMICS MINISTER CHIANG PINKUNG MR CHIANG AND THREE OTHER CABINET MINISTERS SAY THEY WILL RESIGN IF THE US STILL IMPOSES SANCTIONS AUTHORITIES IN THAILAND AND SOUTH KOREA ALSO HAVE STEPPED UP THEIR CAMPAIGNS AGAINST PIRACY RECENTLY CONDUCTING HIGHPROFILE RAIDS ON SHOPS AND FACTORIES BUT IN THE CASE OF THAILAND THE CRACKDOWN ISN'T LIKELY TO IMPRESS WASHINGTON DESPITE PRIME MINISTER CHUAN LEEKPAI'S RECENT ASSERTION THAT HIS SIXMONTHOLD GOVERNMENT AIMS TO PULL VIOLATORS OUT BY THE ROOTS THAILAND IS THE ONLY COUNTRY THAT HAS DONE LITERALLY NOTHING MR SMITH COMPLAINS IT HAS NEVER CONVICTED A MANUFACTURER OF COPYRIGHTED MATERIAL THE SITUATION IS OUTRAGEOUS THAILAND HAS BEEN NAMED A PRIORITY FOREIGN COUNTRY SEVERAL YEARS IN A ROW AND IN 1991 THE BUSH ADMINISTRATION COMPLETED AN INVESTIGATION OF ITS PRACTICES WASHINGTON PREVIOUSLY REFRAINED FROM RETALIATORY MEASURES BECAUSE OF POLITICAL TURMOIL IN THAILAND THAT HAS SEEN FIVE GOVERNMENTS IN TWO YEARS BUT THE CLINTON ADMINISTRATION APPEARS DETERMINED TO BRING BANGKOK TO HEEL UNLESS THE TWO SIDES AGREE ON AN ACCEPTABLE COMPROMISE BY MONTH'S END WASHINGTON COULD SLAP 100 TARIFFS ON THAILAND'S MAJOR EXPORTS INCLUDING TEXTILES SHOES AND JEWELRY SOUTH KOREA IS ANOTHER MATTER FOR YEARS US INDUSTRIES HAVE CONSIDERED IT A SERIOUS VIOLATOR THIS TIME AROUND IT FACES DESIGNATION AS A PRIORITY FOREIGN COUNTRY BUT THE GOVERNMENT OF NEWLY ELECTED PRESIDENT KIM YOUNG SAM HAS LAUNCHED A VIGOROUS CRACKDOWN THAT IS BEING TAKEN SERIOUSLY BY MANY WE WILL CONTINUE THIS CAMPAIGN UNTIL THE PROBLEM IS RESOLVED SAYS KIM CHUL SU KOREA'S MINISTER FOR TRADE AND INDUSTRY WE MEAN BUSINESS US EXECUTIVES IN KOREA ARE IMPRESSED EARLIER THIS MONTH A DELEGATION FROM THE AMERICAN CHAMBER OF COMMERCE IN SEOUL COUNSELED US TRADE OFFICIALS AGAINST DESIGNATING KOREA A PRIORITY FOREIGN COUNTRY PEOPLE ARE GENERALLY ENCOURAGED WITH THE KOREAN GOVERNMENT'S DEDICATION AND ITS INTENT TO PERSEVERE SAYS WILLIAM C OBERLIN EXECUTIVE VICE PRESIDENT OF THE AMERICAN CHAMBER OF COMMERCE THERE'S A REAL INTELLECTUAL CHANGE YANG BYONG HO A CONVICTED PIRATER OF TUPPERWARE PRODUCTS IS ONE EXAMPLE OF SEOUL'S TOUGHER STANCE IN MIDFEBRUARY MR YANG WAS ARRESTED FOR PRODUCING A LINE OF PRODUCTS SOLD AS TARPERS NEW WARE WHILE IN DETENTION HE NEGOTIATED A SETTLEMENT WITH TUPPERWARE'S TRADEMARK HOLDER DART INDUSTRIES INC THAT INCLUDED 15 MILLION WON 18846 IN DAMAGES AND A PUBLISHED APOLOGY UNSATISFIED PROSECUTORS RECOMMENDED A PRISON TERM MR YANG EVENTUALLY RECEIVED A 10MONTH SUSPENDED SENTENCE AND A STERN LECTURE FROM THE JUDGE ABOUT HOW HE AND HIS FELLOW COUNTERFEITERS ARE RUINING KOREA'S IMAGE ABROAD IMPRESSIVE AS SUCH CASES ARE SOME US EXECUTIVES STILL QUESTION SEOUL'S RESOLVE IF THE POLICE ARE STILL BANGING ON DOORS IN SEPTEMBER AND OCTOBER THEN I'LL BELIEVE IN IT A MEMBER OF THE AMERICAN CHAMBER OF COMMERCE DELEGATION SAYS OF THE CRACKDOWN ONE INDICATION THAT KOREA MAY FINALLY BE SERIOUS IS THAT ITS OWN COMPANIES ARE STARTING TO SUFFER FROM INTELLECTUALPROPERTY THEFT OF THE PAST 15 LAWSUITS INVOLVING SOFTWARE PIRACY THAT HAVE GONE TO COURT NINE WERE FILED BY KOREAN COMPANIES WE'VE GOT TO THE POINT WHERE OUR OWN RESEARCH AND DEVELOPMENT HAS TO BE PROTECTED SAYS MR KIM THE TRADE AND INDUSTRY MINISTER WE'RE NOT JUST DOING THIS BECAUSE THE US IS PRESSURING US OTHER COUNTRIES LIKELY TO BE CITED BY THE CLINTON ADMINISTRATION BUT WHO DON'T FACE IMMINENT SANCTIONS ARE AUSTRALIA INDIA INDONESIA MALAYSIA PAKISTAN AND SINGAPORE 9304230160 930423 EC INFLATION STEADY IN MARCH LUXEMBOURG THE PROVISIONAL UNADJUSTED INFLATION RATE IN THE 12NATION EUROPEAN COMMUNITY WAS 35 IN MARCH UNCHANGED FROM FEBRUARY THE EC'S STATISTICS ARM EUROSTAT SAID INFLATION WAS DOWN FROM 48 IN MARCH 1992 EUROSTAT SAID MONTHTOMONTH PRICE INCREASES WERE LOW IN ALL MEMBER STATES EXCEPT GREECE WHERE THE CONSUMER PRICE INDEX ROSE 37 MAINLY BECAUSE OF THE INTRODUCTION OF NEW STOCKS FOLLOWING WINTER SALES OF CLOTHING FOOTWEAR AND DURABLE GOODS ANNUAL INFLATION WAS BELOW 45 IN ALL EC NATIONS EXCEPT PORTUGAL AND GREECE 9304230159 930409 THE REAL ANITA HILL BY DAVID BROCK MORE IMPORTANT THAN MOTIVATION OR STATE OF MIND WAS THE QUESTION POSED AT THE OUTSET OF THIS INQUIRY AND TO WHICH WE MUST RETURN IN SUMMARY THE RELIABILITY OF THE TWO WITNESSES THOMAS HAD COME THROUGH FOUR SENATE CONFIRMATIONS AND FIVE FBI INVESTIGATIONS UNSCATHED NO ASPECT OF THOMAS'S TESTIMONY WAS AT VARIANCE WITH THE ESTABLISHED FACTS OF THE CASE THOMAS'S SOCALLED EVASION IN ROUND ONE OF THE HEARINGS THAT HE HAD NEVER DISCUSSED ROE V WADE FAILED TO PRODUCE ANYONE TO CONTRADICT HIM HIS TESTIMONY ABOUT HIS DEMEANOR IN THE OFFICE WAS MASSIVELY CORROBORATED BY PRACTICALLY EVERY WOMAN WHO HAD EVER WORKED WITH HIM THIS WAS A MAN IN WHOSE PRESENCE PEOPLE DID NOT SWEAR A MAN WHO KNEW HIS EVERY MOVE WAS BEING WATCHED BY HIS POLITICAL ENEMIES AND WHO LECTURED THE BLACK MEN ON HIS STAFF ABOUT THE NEED TO COMBAT NEGATIVE CULTURAL STEREOTYPES EVERYONE WHO KNEW BOTH THOMAS AND HILL BELIEVED THOMAS NOT HILL CLEARLY THOMAS HAD NO PATTERN OF ABUSIVE BEHAVIOR DURING THE TIME THOMAS WAS SUPPOSED TO HAVE BEEN PRESSING HILL FOR DATES HE WAS SERIOUSLY INVOLVED WITH ANOTHER WOMAN EVEN CONTEMPLATING REMARRIAGE WHEN THE JUSTICE DEPARTMENT PROPOSED ANITA HILL AS A WITNESS TO TESTIFY IN FAVOR OF HIS NOMINATION BEFORE SHE MADE THE SEXUAL HARASSMENT CHARGE THOMAS ENCOURAGED THE IDEA WHEN HER CHARGE WAS MADE BEHINDTHESCENES THOMAS HAD A CHANCE TO BACK DOWN TO KEEP HIS NAME OUT OF THE MUD TO KEEP HIS LIFETENURE SEAT ON THE DC CIRCUIT COURT BUT HE DID NOT THOMAS WAS EITHER POWERMAD AS HIS ENEMIES PORTRAYED HIM OR ELSE SO CONFIDENT THAT HILL WOULD HAVE NO EVIDENCE OF SOMETHING HE HAD NEVER DONE THAT SHE WOULD BE FORCED TO BACK DOWN WITHDRAWING HER UNFOUNDED CHARGES AND WHAT OF ANITA HILL IT IS NOW CLEAR THAT SHE DID NOT COME FORWARD IN ANY MEANINGFUL SENSE OF THAT TERM HER CASE UNCORROBORATED AND UNSUPPORTED BY ANY COWORKERS OR ANYONE ELSE WAS NOT A TYPICAL CASE OF SEXUAL HARASSMENT AS HER PROPONENTS CLAIMED REGARDLESS OF HOW ONE INTERPRETS THEM HILL'S STATEMENTS ABOUT THOMAS DURING THE TIME THAT SHE WAS ALLEGEDLY BEING HARASSED BY HIM ARE NOT CONSISTENT WITH HER CHARGE HILL COMPLAINED THAT THOMAS DID NOT EVEN NOTICE ME SHE PORTRAYED HIM AS THE IDEAL BOSS WHO WAS PARTICULARLY RESPECTFUL OF WOMEN EMPLOYEES AND SHE ASSERTED HE WOULD MAKE A GREAT FATHER FURTHER HILL EITHER MADE SEVERAL FALSE STATEMENTS UNDER OATH OR MORE THAN A DOZEN OTHER PEOPLE WERE LYING HILL TESTIFIED THAT SHE WENT WITH THOMAS FROM EDUCATION TO THE EEOC BECAUSE SHE FEARED SHE WOULD HAVE BEEN JOBLESS YET AT THE TIME SHE HAD ACKNOWLEDGED CAREER STATUS AND WAS OFFERED THE CHANCE TO STAY ON BY THOMAS'S SUCCESSOR HILL GAVE SEVERAL DIFFERING AND INCONSISTENT EXPLANATIONS OF HER TELEPHONE CONTACTS WITH THOMAS AFTER SHE HAD LEFT THE EEOC SHE SAID THAT SHE HAD AGREED WHEN MAKING HER COMPLAINT TO THE JUDICIARY COMMITTEE THAT THE NOMINEE COULD BE TOLD HER NAME WHEN IN FACT SHE HAD INSISTED THAT HE NOT BE TOLD HILL SAID SHE AGREED TO AN FBI INVESTIGATION THE MOMENT IT WAS SUGGESTED TO HER BUT SHE HAD REALLY BACKED AWAY FROM THE SUGGESTION DELAYING ANY COMMITTEE INVESTIGATION HILL DENIED THE SWORN TESTIMONY OF CARLTON STEWART AND STANLEY GRAYSON THAT SHE SAID THOMAS DESERVED THE NOMINATION HILL TOLD A MISLEADING ACCOUNT OF HOW SHE ATTAINED THE TEACHING POST AT ORAL ROBERTS UNIVERSITY HILL SAID SHE HAD BEEN ASKED TO TAKE THOMAS TO THE AIRPORT BUT CHARLES KOTHE SAID SHE HAD VOLUNTEERED HILL CLAIMED THE FBI AGENTS TOLD HER AT THE BEGINNING OF THE INTERVIEW THAT THEY WOULD COME BACK FOR THE DETAILS BUT THE AGENTS FLATLY DENIED THIS HILL ACCUSED THE FBI AGENTS OF MISRECORDING HER STATEMENT THAT THOMAS HAD SAID IF SHE EVER TOLD ANYONE ABOUT THE HARASSMENT HE WOULD RUIN HER CAREER BUT BOTH AGENTS INDEPENDENTLY SAID HILL WAS NOT TELLING THE TRUTH HILL SAID SHE HAD NOT TAUGHT A CIVIL RIGHTS COURSE IN FIVE YEARS BUT SHE HAD TAUGHT ONE THE PRIOR YEAR HILL TOLD THE COMMITTEE THAT SHE HAD GIVEN A COPY OF HER COMMITTEE STATEMENT ONLY TO THE COMMITTEE AND TO HER COUNSEL BUT SHE HAD ALSO GIVEN A COPY TO JIM BRUDNEY HILL SAID SHE HAD TOLD ONLY HER CLOSEST FRIENDS OF THE HARASSMENT YET SHE LATER CLAIMED TO HAVE TOLD JOEL PAUL WHOM SHE BARELY KNEW HILL SAID SHE HAD ASKED HER THREE FRIENDS FOR ADVICE ON HOW TO HANDLE THE HARASSMENT YET EACH OF THEM LATER SAID SHE HAD NOT DONE SO HILL SAID THAT NO ONE HAD EVER SUGGESTED TO HER THAT SHE LEAVE WALD HARKRADER & ROSS BUT THIS WAS CONTRADICTED BY FORMER PARTNERS OF THE FIRM DESPITE THESE CONTRADICTIONS MANY PEOPLE WILL BE TEMPTED TO DENY THEIR IMPLICATIONS AND CONTINUE TO ASSERT HILL'S VERACITY THESE PEOPLE MAY CONCLUDE THAT NOTWITHSTANDING HER MANIFOLD OMISSIONS EVASIONS AND FALSE STATEMENTS ANITA HILL MAY STILL HAVE BEEN TELLING THE TRUTH ABOUT WHAT HAPPENED BEHIND CLOSED DOORS BETWEEN HERSELF AND CLARENCE THOMAS FOR READERS SUCH AS THESE NO AMOUNT OF EVIDENCE IS LIKELY TO BE PERSUASIVE THE WILL TO BELIEVE HER ACCOUNT WILL OUTWEIGH WHATEVER FACTS HAVE BEEN PRESENTED HERE FOR OPENMINDED READERS ON THE OTHER HAND THE EVIDENCE PRESENTED MUST WEIGH HEAVILY AGAINST HER CREDIBILITY SOME READERS WILL BE FOUND NO DOUBT WHO SIMPLY DO NOT CARE ABOUT THE TRUTH OF THIS AFFAIR THESE ARE PEOPLE WHO REGARD THE POSITIVE SOCIAL AND POLITICAL RESULTS OF THE THOMASHILL EPISODE AS BEING SO IMPORTANT THAT THEIR BENEFITS TRANSCEND OTHER CONSIDERATIONS AND JUSTIFY WHATEVER MEANS MAY HAVE BEEN NECESSARY TO ENSURE THEIR FULFILLMENT CLEARLY THE ATTENTION THAT HAS BEEN SUBSEQUENTLY RIVETED ON THE LONGSUBMERGED PROBLEM OF SEXUAL HARASSMENT IS A WELCOME DEVELOPMENT JUST AS CLEARLY HOWEVER THE POTENTIAL FOR ABUSE EXISTS THE FINAL QUESTION THEREFORE MUST CONCERN THE EFFECTS OF THE ANITA HILL STORY ON THE HANDLING OF THIS PROBLEM IN THE MANY OTHER CASES THAT HAVE ARISEN IN ITS WAKE THOUGH IT DID NOT COME TO THE ATTENTION OF THE PUBLIC AT THE TIME OF THE HEARINGS THE NOTION THAT THE MALE SENATORS JUST DIDN'T GET IT SERVED THE INTERESTS OF A BROADER IDEOLOGICAL MOVEMENT TO REDEFINE THE LEGAL AND SOCIAL RELATIONS BETWEEN THE SEXES THE PHRASE EPITOMIZED AND AMPLIFIED THE FEMINIST ARGUMENT THAT AMERICAN SOCIETY IS A PATRIARCHAL SYSTEM THAT ENSHRINES A MALE PERSPECTIVE AND RELEGATES WOMEN TO SUBORDINATE ROLES NOTIONS OF LOGIC OBJECTIVITY EQUALITY UNDER LAW AND THE COMMON GOOD ARE ALL REGARDED AS REFLECTIONS OF THIS PATRIARCHAL BIAS CERTAIN FEMINIST SCHOLARS POSIT DISTINCT DIFFERENCES BETWEEN MALE AND FEMALE WAYS OF THINKING MORAL REASONING AND SOCIAL AND POLITICAL BEHAVIOR WRITING IN THE SOUTHERN CALIFORNIA LAW REVIEW FOR EXAMPLE LAW PROFESSOR JUDITH RESNIK AN ADVISER TO ANITA HILL DURING THE HEARINGS AND A MEMBER OF THE AD HOC COMMITTEE ON PUBLIC EDUCATION ON SEXUAL HARASSMENT REFLECTS THIS VIEW WHEN SHE ARGUES THAT INHERENT GENDER BIAS MAKES IT LITERALLY IMPOSSIBLE FOR MOST MEN ESPECIALLY MEN IN POSITIONS OF POWER TO HEAR WHAT WOMEN ARE SAYING THUS ANY MEN OR ANY WOMEN FOR THAT MATTER WHO DISBELIEVED ANITA HILL ARE NOT SO MUCH UNPERSUADED BY THE EVIDENCE AS IDEOLOGICALLY DEFORMED THEY JUST DON'T GET IT ANN SCALES OF THE UNIVERSITY OF NEW MEXICO LAW SCHOOL EXTENDS THIS ARGUMENT TO UNDERMINE THE FUNDAMENTAL PREMISE OF LEGAL REASONING THAT TRUTH CAN BE OBJECTIVELY DETERMINED BY LOGICAL ANALYSIS FEMINIST ANALYSIS BEGINS WITH THE PRINCIPLE THAT OBJECTIVE REALITY IS A MYTH SHE WROTE IN YALE LAW SCHOOL THIS KIND OF REASONING FORMS THE BASIS FOR THE ARGUMENT THAT WOMEN EVALUATED THE ANITA HILL CASE IN A DIFFERENT WAY THAN MEN AN ARGUMENT BELIED BY OPINION POLLS TAKEN AT THE TIME OF THE HEARINGS SEXUAL HARASSMENT IS CURRENTLY DEFINED AS AN UNWELCOME REQUEST FOR SEXUAL FAVORS OR UNWELCOME SEXUAL CONDUCT WHEN SUBMISSION IS MADE A CONDITION OF EMPLOYMENT THERE ARE TWO RECOGNIZED FORMS OF HARASSMENT QUID PRO QUO HARASSMENT WHERE AN EMPLOYEE IS SUBJECTED TO AN ADVERSE EMPLOYMENT DECISION SLEEP WITH ME OR FORGET THAT PROMOTION AND HOSTILE ENVIRONMENT HARASSMENT WHERE THE WORKPLACE IS JUDGED SO OFFENSIVE DIRTY JOKES TOLD CONTINUALLY PORNOGRAPHIC PICTURES ON THE WALLS AS TO CREATE A BARRIER TO EQUAL EMPLOYMENT OPPORTUNITY FEMINIST LAWYERS WANT TO EXPAND THE LAW'S REACH BEGINNING WITH SEXUAL HARASSMENT AND IN DOING SO PROMOTE SEPARATE SEXBASED LEGAL STANDARDS AND ENTITLEMENTS THEY AIM TO REPLACE THE LEGAL STANDARD BY WHICH THE HOSTILE ENVIRONMENT IS DEFINED BY ARGUING THAT THE SUBJECTIVE REACTION OF THE FEMALE COMPLAINANT SHOULD BE THE DETERMINING FACTOR NOT THE OBJECTIVE MALE OR GENDERNEUTRAL PERSON STANDARD ENSHRINED BY CURRENT LAW THE GENDERNEUTRAL PERSON FEMINISTS ARGUE IS A PATRIARCHAL ARTIFACT INTENDED TO PERPETUATE MALE POWER THUS THE UTILITY TO THE FEMINIST LEGAL PROJECT OF ANITA HILL THE FEMALE VICTIM DISBELIEVED BY A PANEL OF MALE SENATORS BECOMES EVIDENT CATHARINE MACKINNON THE LAW PROFESSOR WHO HAS PIONEERED THIS BROADENED LEGAL THEORY OF SEXUAL HARASSMENT HAS TAKEN THE ARGUMENT SO FAR AS TO DENY THE DISTINCTION BETWEEN SEX CRIMES AND CONSENSUAL RELATIONS FEMINISM STRESSES THE INDISTINGUISHABILITY OF PROSTITUTION MARRIAGE AND SEXUAL HARASSMENT MACKINNON HAS WRITTEN COMPARE VICTIM REPORTS OF RAPE WITH WOMEN'S REPORTS OF SEX THEY LOOK A LOT ALIKE IN THIS LIGHT THE MAJOR DISTINCTION BETWEEN INTERCOURSE NORMAL AND RAPE ABNORMAL IS THAT THE NORMAL HAPPENS SO OFTEN THAT ONE CANNOT SEE ANYTHING WRONG WITH IT MEN SEE RAPE AS INTERCOURSE FEMINISM OBSERVES THAT MEN MAKE MUCH INTERCOURSE RAPE ALL THIS MAKES IT DIFFICULT TO SUSTAIN THE CUSTOMARY DISTINCTIONS BETWEEN VIOLENCE AND SEX IF NO' CAN BE TAKEN AS YES' HOW FREE CAN YES' BE IF SEX IS NORMALLY SOMETHING MEN DO TO WOMEN THE ISSUE IS LESS WHETHER THERE WAS FORCE AND MORE WHETHER CONSENT IS A MEANINGFUL CONCEPT SINCE ALL MEN ARE SEEN AS RAPISTS IN THIS PARADIGM IT DOES NOT MATTER WHETHER HILL ACTUALLY PROVED HER CASE AGAINST THOMAS OR NOT AS HILL HERSELF HAS PUT IT IN CAMPUS LECTURES WOMEN SHOULD BE SUPPORTED REGARDLESS OF PROOF AS IT HAPPENS MACKINNON WHO ADVISED ANITA HILL BEFORE SHE TESTIFIED IS ALSO A LEADING FIGURE IN THE MOVEMENT AMONG SOME FEMINISTS TO BAN PORNOGRAPHY HILL'S TESTIMONY HAS BEEN USEFUL IN THIS CRUSADE AS WELL INSOFAR AS IT LINKED PORNOGRAPHIC OBSESSION TO THE COMMISSION OF A SEX CRIME LOWERING THE STANDARD OF EVIDENCE TO THE POINT ENVISIONED BY FEMINISTS LIKE MACKINNON MEANS THAT IN A CASE LIKE THAT OF HILL AND THOMAS A CASE TO ALL APPEARANCES OF HIS WORD AGAINST HERS THE LEGAL PRESUMPTION ALWAYS FAVORS THE ACCUSER SUCH A PRECEDENT ONCE ESTABLISHED WORKS TO UNDERMINE THE LONGESTABLISHED LEGAL PRESUMPTION THAT AN ACCUSED PARTY IS INNOCENT UNTIL PROVEN GUILTY SUCH WAS THE CASE WITH CLARENCE THOMAS THIS QUIET REVOLUTION IN AMERICAN JURISPRUDENCE IF ALLOWED TO GO UNCHECKED MAY INFRINGE THE RIGHTS OF THE ACCUSED IN OTHER AREAS AND THEREFORE HAS IMPORTANT IMPLICATIONS FOR THE WHOLE OF OUR LEGAL SYSTEM SEXUAL HARASSMENT BECAUSE IT HAPPENS IN PRIVATE AND SO IS DIFFICULT TO PROVE IS PRECISELY THE SORT OF UNANSWERABLE CHARGE THAT CAN SOMETIMES BE ABUSED IT THEREFORE REQUIRES NOT THE SUSPENSION OF AN OBJECTIVE LEGAL STANDARD OF PROOF BUT RATHER A RENEWED INSISTENCE ON ADHERENCE TO ESTABLISHED EVIDENTIARY NORMS WITHOUT SUCH SAFEGUARDS AS THE HILL CASE AMPLY DEMONSTRATES PASSION AND POLITICS CAN DISPLACE REASONED ANALYSIS AND AN INNOCENT PERSON'S REPUTATION CAN BE RUINED FEMINIST LEGAL THEORISTS WILL UNDOUBTEDLY CONTINUE TO EXPLOIT THE SOCIETAL EARTHQUAKE THAT ANITA HILL'S CHARGES SET OFF TO PRESS THEIR AGENDA IN THE COURTS IT IS NO COINCIDENCE THAT THESE INTERESTS DOVETAIL WITH THOSE OF THE SHADOW SENATE LIBERAL SPECIAL INTEREST GROUPS AND SENATE STAFFERS WHOSE IDEOLOGICAL ZEAL PRODUCED THE ANITA HILL SCANDAL IN THE FIRST PLACE AND WHOSE LEADERS HAVE EMPLOYED THE SAME PRESSURE TACTICS IN THE LAST DECADE THAT THE FEMINIST LEGAL THEORISTS ARE NOW DEPLOYING IN THEIR EFFORTS TO SECURE JUDICIAL OUTCOMES BOTH BELONG TO A POLITICAL MOVEMENT THAT CALLS ITSELF LIBERAL BUT IS REALLY DEEPLY HOSTILE TO THE WESTERN LIBERAL TRADITION WHOSE PREMISES INFORM OUR MAJOR LEGAL AND POLITICAL INSTITUTIONS VIEWING THAT TRADITION AS AN IDEOLOGY THAT SUPPORTS A RACIST AND SEXIST SOCIAL ORDER SINCE THESE RADICAL UTOPIANS BELIEVE THEY ARE ON THE SIDE OF HISTORY ANYONE WHO OPPOSES THEIR AGENDA IS NOT MERELY WRONG BUT WICKED THUS TO QUESTION HILL'S ACCOUNT OF WHAT OCCURRED BETWEEN HERSELF AND CLARENCE THOMAS IS SEEN NOT AS AN ATTEMPT TO EXPLORE A REASONABLE DOUBT BUT AS A PROFOUNDLY IMMORAL BID TO JUSTIFY AN EVIL AND OPPRESSIVE SOCIAL ORDER IT IS PRECISELY THIS CONVICTION THAT EXISTING LEGAL AND POLITICAL PROCEDURES ARE ILLEGITIMATE THAT JUSTIFIED TO THE SHADOW SENATE AND ANITA HILL HERSELF THE ABROGATION OF THOSE PROCEDURES IN ORDER TO STOP CLARENCE THOMAS THE LEAKING OF HILL'S CHARGES AND THE FAILURE OF ANYONE INCLUDING THE SENATE REPUBLICANS TO SEE THE LEAKERS BROUGHT TO JUSTICE HAS SET A NEW LOW IN THE TACTICS THAT OFFICIAL WASHINGTON SEEMS WILLING TO TOLERATE HOW THAT DYNAMIC MAY CHANGE WITH A DEMOCRAT IN THE WHITE HOUSE REMAINS TO BE SEEN IN THE SHORT TERM EVEN WITH THE WHITE HOUSE AND THE SENATE IN THE HANDS OF THE SAME PARTY THERE SEEMS LITTLE PROSPECT THAT THE RETAIL POLITICS OF THE CONFIRMATION PROCESS AND THE NAKED POLITICAL PRESSURES ON JUDGES THEMSELVES WILL ABATE THE ULTIMATE CONSEQUENCES OF THIS UNBRIDLED PURSUIT OF ANY MEANS NECESSARY TO ATTAIN POLITICAL ENDS ALSO REMAIN TO BE SEEN AS WITH THE WATERGATE AND IRANCONTRA SCANDALS WHEN LAWS ARE VIOLATED AND LIES ARE TOLD IN THE SERVICE OF A HIGHER GOOD THE BODY POLITIC AND THE SOCIAL FABRIC SUFFER THE PUBLIC LEARNS FROM SUCH EVENTS THAT IN POLITICS ONLY THE MORALITY OF ENDS HAS ANY SIGNIFICANCE BUT THE FRAMERS OF OUR CONSTITUTION UNDERSTOOD THAT MORALITY LIES IN THE MEANS NOT THE ENDS THE PROCEDURAL GUARANTEES THAT GOVERN LEGAL AND JUDICIAL AS WELL AS POLITICAL OUTCOMES ARE NOT MERE ARBITRARY OBSTACLES SET UP TO BLOCK VIRTUOUS IMPULSES THEY ARE THE SOUL OF OUR DEMOCRACY AND THE BULWARK OF OUR FREEDOM THUS WHEN ANITA HILL'S TOTALLY UNSUBSTANTIATED CHARGE REJECTED BY AN OVERWHELMING MAJORITY OF AMERICANS ONLY A YEAR BEFORE BECAME ENSHRINED IN POPULAR CULTURE AS THE THE TRUTH CLARENCE THOMAS WAS NOT THE ONLY PARTY WHO WAS HARMED THE AMERICAN PEOPLE WERE ALSO HARMED SINCE AS A RESULT OF THIS LAMENTABLE EPISODE THE PUBLIC'S FAITH AND TRUST IN THE INTEGRITY OF THE SENATE AND THE SUPREME COURT HAVE BEEN PERHAPS IRREPARABLY TARNISHED SEE RELATED LETTERS LETTERS TO THE EDITOR THE NEVERENDING SEARCH FOR ANITA WSJ APRIL 23 1993 9304090106 9304230158 930423 SALOMON POSTS 102 MILLION NET LOSS RESULTING FROM BOND TRADES IN QUARTER BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SALOMON INC POSTED A NET LOSS OF 102 MILLION OR 110 A SHARE FOR THE FIRST QUARTER STEMMING FROM BAD BONDTRADING BETS EVEN AS THE REST OF THE SECURITIES INDUSTRY POSTS RECORD EARNINGS SALOMON'S QUARTERLY LOSS WAS ITS STEEPEST SINCE THE FOURTH QUARTER OF 1984 WHEN THE BIG TRADING FIRM HAD A LOSS OF 130 MILLION THE 1993 QUARTER LOSS INCLUDED A 37 MILLION CHARGE AFTER TAXES REFLECTING AN ACCOUNTING CHANGE COVERING POSTRETIREMENT BENEFITS EXCLUDING THE CHARGE SALOMON'S LOSS IN THE QUARTER WAS 65 MILLION OR 76 CENTS A SHARE AGAINST NET INCOME OF 190 MILLION OR 151 A SHARE A YEAR EARLIER SALOMON HAD ROBUST TRADING RESULTS IN MARCH WHICH NARROWED ITS LOSSES FOR THE 1993 QUARTER AS REPORTED SALOMON STUNNED ANALYSTS IN EARLY MARCH BY DISCLOSING THAT IT INCURRED A PRETAX OPERATING LOSS OF ABOUT 250 MILLION FOR JANUARY AND FEBRUARY MOSTLY FROM BOND TRADING FOR ITS OWN ACCOUNT STILL SALOMON'S RESULTS STAND IN STARK CONTRAST WITH THE REST OF WALL STREET SEVERAL BIG BROKERAGE FIRMS INCLUDING MERRILL LYNCH & CO PAINEWEBBER GROUP INC AND BEAR STEARNS COS POSTED RECORD PROFIT FOR THE QUARTER ENDED MARCH 31 SALOMON'S LOSS UNDERSCORES HOW ITS RESULTS INCREASINGLY ARE VEERING FROM THOSE OF MAJOR RIVALS SALOMON IS MUCH MORE OF A PROPRIETARYTRADING OPERATION THAT USES LOTS OF THE FIRM'S CAPITAL TO TAKE TRADING BETS SAYS ALISON A DEANS AN ANALYST AT SMITH BARNEY HARRIS UPHAM & CO A LOT OF OTHER WALL STREET FIRMS ARE CLIENTTRANSACTION DRIVEN SALOMON'S RESULTS FELL BELOW ANALYSTS' CONSENSUS FORECAST OF A LOSS OF 52 CENTS A SHARE AS TRACKED BY ZACKS INVESTMENT RESEARCH INC SALOMON'S STOCK FELL 25 CENTS TO 3725 A SHARE IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY SALOMON BROTHERS INC SALOMON'S FLAGSHIP SECURITIES UNIT HAD A PRETAX LOSS IN THE FIRST QUARTER OF 89 MILLION AGAINST PRETAX EARNINGS OF 374 MILLION IN THE YEAREARLIER PERIOD SALOMON SAID THE LOSSES STEMMED FROM PROPRIETARY TRADING STRATEGIES IT WOULDN'T BE MORE SPECIFIC BUT TRADERS SAY THE LOSS WAS TRIGGERED PARTLY BY TRADING SECURITIES BACKED BY HOME MORTGAGES AS HOMEOWNERS RUSHED TO REFINANCE AND PREPAY THEIR OLD MORTGAGES WITH LOWERRATE LOANS THE VALUE OF SOME MORTGAGEBACKED BONDS ERODED BECAUSE THERE WAS LESS INTEREST AVAILABLE FOR HOLDERS TRADERS SAY SALOMON ALSO MADE A BIG BET THAT BOND YIELDS WOULD RISE INSTEAD THE 30YEAR TREASURY BOND YIELD FELL TO BELOW 7 SALOMON WOULDN'T SPECIFY WHAT TRADING VEHICLE LED TO THE LOSSES PROPRIETARY STRATEGIES FREQUENTLY HAVE LONGTERM TIME HORIZONS IN SOME CASES EXTENDING OVER SEVERAL YEARS SALOMON SAID YESTERDAY INTERIM RESULTS OF PROPRIETARY TRADING WHICH REFLECT QUARTEREND MARKET VALUES OF ALL TRADING POSITIONS ARE VOLATILE RESULTS FOR THE QUARTER ALSO INCLUDE A PRETAX CHARGE OF 25 MILLION TO INCREASE SALOMON BROTHERS' RESERVES FOR VARIOUS LEGAL MATTERS SALOMON WOULDN'T BE MORE SPECIFIC THE BIGGEST BOOST TO SALOMON'S RESULTS WAS A 38 JUMP IN REVENUE FROM INVESTMENTBANKING OPERATIONS THIS STEMMED IN PART FROM SIZZLING MARKETS FOR STOCK AND BOND UNDERWRITING SALOMON HAD A 94 SHARE OF THE UNDERWRITING MARKET IN THE FIRST QUARTER ACCORDING TO SECURITIES DATA CO MEANWHILE SALOMON'S PHIBRO ENERGY OIL OPERATIONS CONTINUED TO BE A DRAG ON EARNINGS THOUGH ITS RESULTS HAVE IMPROVED SOMEWHAT PHIBRO ENERGY USA WHICH OWNS AND OPERATES FOUR OIL REFINERIES HAD A PRETAX LOSS OF 13 MILLION IN THE FIRST QUARTER REFLECTING CONTINUED WEAKNESS IN OILREFINING MARGINS DURING THE QUARTER SALOMON SAID IN 1992'S FIRST QUARTER PHIBRO ENERGY USA HAD A PRETAX LOSS OF 21 MILLION SALOMON'S PHIBRO ENERGY DIVISION WHICH TRADES OIL AND OTHER COMMODITIES EARNED 6 MILLION BEFORE TAXES IN THE FIRST QUARTER AGAINST A PRETAX LOSS OF 8 MILLION A YEAR EARLIER SALOMON'S TOTAL ASSETS SWELLED TO A RECORD 177 BILLION A 72 JUMP FROM A YEAR EARLIER AND UP FROM 159 BILLION AT YEAR END THESE ASSETS WHICH INCLUDE CASH BONDS AND OTHER FINANCIAL INSTRUMENTS AND SHORTTERM FINANCING AGREEMENTS ALLOW SALOMON TO MAKE HUGE SUMS OF MONEY ON THE DIFFERENCE BETWEEN THE RATE IT PAYS TO BORROW BILLIONS OF DOLLARS AND THE HIGHER INTEREST RATES IT RECEIVES ON ITS LONGTERM BOND HOLDINGS INDEED SALOMON HAD REVENUE OF 14 BILLION IN INTEREST AND DIVIDENDS IN THE FIRST QUARTER 31 HIGHER THAN THE YEAREARLIER PERIOD BUT SALOMON'S HUGE INVENTORY OF ASSETS THE BIGGEST BALANCE SHEET ON WALL STREET COULD HURT THE FIRM IF INTEREST RATES SUDDENLY SURGE ANALYSTS SAY THIS IS BECAUSE SALOMON TYPICALLY HEDGES ITS TRADING ACTIVITIES ON BEHALF OF CUSTOMERS BUT NOT ALWAYS FOR PROPRIETARY TRADES USING ITS OWN CASH SALOMON HAS BEEN PUSHING THE ENVELOPE ON HOW MUCH IT IS LEVERAGING ITS EQUITY BASE SAYS SMITH BARNEY'S MS DEANS THIS MAKES EARNINGS A LITTLE BIT MORE VULNERABLE TO A SWING IN RATES TO THE NEGATIVE MS DEANS SAYS 9304230157 930423 CANADIAN AIRLINES AMR HAVE SETBACK ON VENTURE PLANS BY ROSANNA TAMBURRI STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA CANADA'S COMPETITION TRIBUNAL HANDED DOWN A RULING THAT THREATENS TO SCUTTLE A PROPOSED PARTNERSHIP BETWEEN CANADIAN AIRLINES INTERNATIONAL LTD AND AMERICAN AIRLINES THE TRIBUNAL SAID IT DOESN'T HAVE THE JURISDICTION TO FREE CANADIAN AIRLINES A DIVISION OF PWA CORP BASED IN CALGARY ALBERTA FROM A COMPUTER RESERVATION CONTRACT WITH THE GEMINI GROUP OF TORONTO ENDING THAT CONTRACT IS A KEY CONDITION OF AMERICAN PARENT AMR CORP'S AGREEMENT TO BUY A ONETHIRD STAKE IN CANADIAN AIRLINES FOR 195 MILLION UNDER THE FOURMONTHOLD AGREEMENT CANADIAN AIRLINES WOULD THEN TRANSFER ITS COMPUTER RESERVATIONS SYSTEM TO AMR'S SABRE COMPUTER NETWORK GEMINI WHICH IS JOINTLY OWNED BY PWA AIR CANADA AND AN AFFILIATE OF UNITED AIRLINES' PARENT UAL CORP IS SABRE'S MAIN COMPETITOR IN CANADA PWA CHAIRMAN RHYS EYTON SAID THE COMPANY WILL APPEAL THE TRIBUNAL'S RULING TO CANADA'S FEDERAL COURT OF APPEAL THIS IS ANOTHER TEMPORARY SETBACK MR EYTON SAID AT A NEWS CONFERENCE IN CALGARY BUT WE'VE BEEN THROUGH THIS BEFORE AND WE FULLY INTEND TO KEEP ON MARCHING ALONG DONALD CARTY AN EXECUTIVE VICE PRESIDENT AT AMR SAID HE STILL HOPES THAT AMERICAN WILL BE ABLE TO LINK UP WITH CANADIAN AIRLINES CANADA'S SECOND LARGEST AIRLINE AIR CANADA CANADA'S LARGEST AIRLINE AND THE GEMINI GROUP HAD OPPOSED CANADIAN AIRLINES' WITHDRAWAL FROM THE GEMINI SYSTEM BOTH WELCOMED THE TRIBUNAL'S RULING THE TRIBUNAL SAID THAT IF IT HAD THE JURISDICTION TO FREE CANADIAN AIRLINES FROM ITS CONTRACT WITH GEMINI IT WOULD HAVE DONE SO THE QUASIJUDICIAL PANEL SAID THAT CANADIAN AIRLINES WOULDN'T LIKELY SURVIVE IF ITS PARTNERSHIP AGREEMENT WITH AMERICAN AIRLINES IS ABANDONED IF CANADIAN AIRLINES FAILS OR IF IT IS FORCED TO MERGE WITH AIR CANADA COMPETITION IN CANADA'S AIRLINE MARKET WOULD BE SUBSTANTIALLY LESSENED THE TRIBUNAL SAID MR EYTON THE PWA CHAIRMAN SAID THE TRIBUNAL'S DECISION WON'T AFFECT CANADIAN AIRLINES' OPERATIONS OR ITS FINANCIAL POSITION HE SAID THE AIRLINE'S CASH POSITION IS BETTER THAN FORECASTED AND THAT PASSENGER TRAFFIC IS AHEAD OF LAST YEAR'S LEVELS HE ESTIMATED THAT CANADIAN HAS ABOUT 175 MILLION CANADIAN DOLLARS US1389 MILLION AVAILABLE IN CASH AND LINES OF CREDIT IN TRADING ON THE TORONTO STOCK EXCHANGE PWA SHARES ROSE 2 CANADIAN CENTS TO 40 CENTS AIR CANADA SHARES ROSE 30 CANADIAN CENTS TO C345 9304230156 930423 WHO'S NEWS MOLSON BREWERIES SAYS ITS PRESIDENT TO GET ADDED TITLE OF CEO TORONTO MOLSON BREWERIES SAID ITS PRESIDENT J BRUCE POPE WILL ASSUME THE ADDITIONAL TITLE OF CHIEF EXECUTIVE OFFICER ON APRIL 30 HE SUCCEEDS JOHN C CARROLL WHO WILL RETIRE AS EXECUTIVE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE BREWING CONCERN MR CARROLL 59 YEARS OLD WILL REMAIN AN HONORARY DIRECTOR MOLSON BREWERIES SAID IT WILL ELIMINATE THE POSITION OF EXECUTIVE CHAIRMAN AS WELL AS THAT OF CHIEF OPERATING OFFICER A TITLE CURRENTLY HELD BY MR POPE IN HIS NEW POSITION MR POPE 45 WILL BE RESPONSIBLE FOR ALL ASPECTS OF MOLSON BREWERIES' OPERATION MR POPE SAID THE SUCCESSION PLAN HAS BEEN IN THE WORKS FOR SOME TIME HE SAID HE DOESN'T PLAN TO MAKE SIGNIFICANT CHANGES IN THE COMPANY'S DIRECTION I'M VERY HAPPY WITH THE WAY THE SHIP IS RUNNING CURRENTLY HE SAID MOLSON BREWERIES IS OWNED 40 EACH BY MOLSON COS OF MONTREAL AND FOSTER'S BREWING GROUP LTD OF AUSTRALIA EARLIER THIS MONTH 20 OF MOLSON BREWERIES WAS ACQUIRED BY MILLER BREWING CO MILWAUKEE A UNIT OF PHILIP MORRIS COS 9304230155 930423 HOUSEHOLD SPENDING IN JAPAN DECLINED 34 ON AVERAGE IN FEBRUARY SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPAN'S HOUSEHOLD SPENDING IN FEBRUARY WAS 298013 YEN 2692 A HOUSEHOLD ON AVERAGE DOWN 34 FROM THE YEAREARLIER MONTH IN REAL TERMS THE STATISTICS BUREAU OF THE PRIME MINISTER'S OFFICE SAID REAL HOUSEHOLD SPENDING DISCOUNTS INFLATION IN JANUARY HOUSEHOLD SPENDING FELL 21 FROM THE YEAR BEFORE WORSE THAN THE 09 DECLINE FOR DECEMBER THE FEBRUARY HOUSEHOLD SPENDING DATA ARE IN LINE WITH OFFICIAL FORECASTS THAT JAPANESE PERSONAL CONSUMPTION OUTLAYS WILL REMAIN WEAK THROUGH THE FIRST HALF OF THE CURRENT FISCAL YEAR THROUGH SEPTEMBER DESPITE SOME RECENT BRIGHT SIGNS ON THE ECONOMIC HORIZON INCLUDING IMPROVED CAR SALES AND A SHARP REBOUND OF STOCK PRICES THE GOVERNMENT SAYS PERSONAL CONSUMPTION WHICH ACCOUNTS FOR ALMOST 60 OF GROSS NATIONAL PRODUCT SHOULD CONTINUE TO MOVE AT LOW LEVELS CONSEQUENTLY THE EXPECTED UPTURN OF THE JAPANESE ECONOMY THIS YEAR SHOULD BE GRADUAL OFFICIALS SAY OFFICIALS SAY CONSUMERS HAVE MONEY TO SPEND AS EVIDENCED BY CONTINUED GROWTH OF DISPOSABLE INCOME BUT AMID CONTINUED REPORTS OF SOFTENING LABOR MARKET CONDITIONS THE FALL IN SPENDING REFLECTS CONSUMERS' CAUTIOUSNESS THE 34 YEARONYEAR DROP WAS THE SHARPEST DECLINE SINCE NOVEMBER 1990 WHEN OUTLAYS ALSO FELL 34 9304230154 930423 EC FISCAL WOES SEEN AS THREAT TO UNITY TREATY GOVERNORS OF CENTRAL BANKS URGE STEPS TO BOLSTER THE CREDIBILITY OF EMS BY TERENCE ROTH STAFF REPORTER OF THE WALL STREET JOURNAL BASEL SWITZERLAND EUROPEAN COMMUNITY CENTRAL BANK GOVERNORS WARNED THEIR GOVERNMENTS THAT THE MAASTRICHT TREATY FOR GREATER EUROPEAN UNITY WAS AT RISK UNLESS BUDGET DEFICITS WERE CURBED AND AGREEMENT ON POLICIES IMPROVED IN AN ANNUAL REPORT ISSUED THIS WEEK THE COMMITTEE OF GOVERNORS ALSO URGED STEPS TO RESTORE CREDIBILITY TO THE EUROPEAN MONETARY SYSTEM CLAIMING THAT IMBALANCES IN MONETARY AND FISCAL POLICIES PERSIST STEPS TO REDUCE BUDGET DEFICITS AND PUBLICSECTOR DEBT MUST BE TAKEN NOW THE BANKERS SAID IF THE CREDIBILITY OF MEMBER COUNTRIES' POLICIES AND TREATY OBLIGATIONS ARE TO BE MAINTAINED AND OVERBURDENING OF MONETARY POLICIES IS TO BE AVOIDED DESPITE GOVERNMENT CALLS FOR ACCELERATED INTERESTRATE CUTS EC CENTRAL BANKS DECLARED THAT FIGHTING INFLATION WOULD CONTINUE TO BE THE TOP PRIORITY THIS YEAR SUGGESTING THE RATES MAY NOT FALL AS QUICKLY AS GOVERNMENTS WOULD LIKE TO FINANCE MARKETS IT APPEARS THAT GOVERNMENTS AND CENTRAL BANKS ARE TALKING PAST EACH OTHER THE REPORT WAS RELEASED PRIOR TO YESTERDAY'S INTERESTRATE CUTS BY GERMANY'S BUNDESBANK WE AREN'T SPEAKING DIFFERENT LANGUAGES BUT THE EMPHASIS CAN BE DIFFERENT SAID COMMITTEE CHAIRMAN WIM DUISENBERG HEAD OF THE DUTCH CENTRAL BANK ONLY TWO OF THE 12 EC COUNTRIES FRANCE AND LUXEMBOURG MEET THE PUBLIC DEBT AND BUDGET DEFICIT CONDITIONS REQUIRED FOR ENTERING A MONETARY UNION THE BANKERS' REPORT CITES AN EC COMMISSION FORECAST THAT THE AVERAGE BUDGET DEFICIT OF EC COUNTRIES IN 1993 WOULD RISE A HALFPERCENTAGE POINT TO 575 OF EC GROSS DOMESTIC PRODUCT NEARLY DOUBLE THE 3 LIMIT SET BY THE MAASTRICHT TREATY THE BIGGEST OFFENDERS CONTINUE TO BE ITALY GREECE AND BELGIUM ON DEFICITS AND PUBLIC DEBT WHICH MAASTRICHT LIMITS TO 60 OF GDP WARNINGS OF FAULT LINES COME AT A TIME OF RELATIVE CALM IN THE EMS EXCHANGE RATE MECHANISM THE FRENCH FRANC SURVIVED FRANCE'S MARCH ELECTIONS BUT CURRENCY ANALYSTS SAY EUROPE'S SPREADING RECESSION BRITAIN'S DELAYED RATIFICATION OF MAASTRICHT THE SECOND DANISH MAASTRICHT REFERENDUM AND SPAIN'S JUNE 6 ELECTIONS ALL COULD SPARK ANOTHER ERM CRISIS POLITICAL EVENTS TEND TO ENHANCE UNCERTAINTY SAID MR DUISENBERG IF THE DANISH VOTE IS NO THEN THERE IS NO MAASTRICHT TREATY ANYMORE IT'S AS SIMPLE AS THAT TEN NATIONS HAVE RATIFIED THE TREATY HE SAID DELAYED RATIFICATION IN THE UK AND DENMARK THREATENS TO POSTPONE THE STARTUP OF THE EUROPEAN MONETARY INSTITUTE A COORDINATING BODY THE TREATY FORESEES AS THE FORERUNNER OF A CENTRAL BANK PLANNED TO BEGIN JAN 1 THE EMI COULD BE DELAYED UNTIL LATER IN 1994 THE CENTRAL BANKS SAID THE 1992 CRISIS WHICH RESULTED IN DEVALUATION OF SPANISH PORTUGUESE AND IRISH CURRENCIES AND A SHARP DROP IN THE ITALIAN LIRA AND BRITISH STERLING SHOWED THAT THE EMS MUST REMAIN FLEXIBLE AND THAT EXCHANGERATE REALIGNMENTS MAY BE NEEDED IF MAJOR ECONOMIC IMBALANCES ARISE BUT THEY ALSO EMPHASIZED THAT A REALIGNMENT WON'T FIX DEEPER PROBLEMS RAISED BY DIVERGENT FISCAL MONETARY AND WAGE POLICIES IN A WARNING TO MARKET SPECULATORS THE GOVERNORS SAID THAT CENTRAL BANKS WOULD COOPERATE CLOSELY TO DEFEND CURRENCY LEVELS BACKED BY STRONG ECONOMIC CLOUT AN OBVIOUS REFERENCE TO THE FRENCH FRANC WHICH WITH THE SAME ARGUMENT THE BANKS AND GOVERNMENTS SUPPORTED AGAINST SPECULATORS LAST YEAR MR DUISENBERG SAID THERE WAS NO LIMIT ON THE EXTENT OF CENTRAL BANK INTERVENTION MR DUISENBERG SAID FIVE YEARS WITHOUT ECONOMIC CONVERGANCE AND WITHOUT CHANGES IN CURRENCY PARITIES WAS A MAJOR CAUSE OF SEPTEMBER'S ERM CRISIS WHEN THE BUNDESBANK ALONE SPENT MORE THAN 90 BILLION MARKS TO DEFEND PARTNER CURRENCIES THE NEXT ERROR HE SAID WAS STRETCHING A MAJOR CURRENCY REALIGNMENT OVER SIX MONTHS BECAUSE OF POLITICAL RESISTANCE FROM GOVERNMENTS OF AFFECTED CURRENCIES IT SHOULD HAVE BEEN DONE OVER ONE LONG WEEKEND IN BRUSSELS MR DUISENBERG SAID WE WILL NEVER DO THAT AGAIN ADDING THAT EC CENTRAL BANK GOVERNORS HAVE SINCE INCREASED THE FREQUENCY OF PRIVATE MEETINGS TO DISCUSS ERM CURRENCY PARITIES BRITAIN AND ITALY WHOSE CURRENCIES WERE SUSPENDED FROM THEIR FIXED ERM PARITIES IN SEPTEMBER WERE WARNED TO WATCH FOR A PICKUP IN INFLATIONARY DANGERS THE SAME WARNING WENT TO SPAIN PORTUGAL AND IRELAND GIVING EXPORTERS A COMPETITIVE EDGE WHILE ALSO INCREASING INFLATION DANGERS THERE ARE NO PLANS TO RESTORE THE LIRA OR STERLING TO ERM SOON MR DUISENBERG SAID REFERRING TO THE ANNUAL REPORT HE SAID EUROPE NEEDS A NEW DOSE OF FISCAL RESTRAINT WAGE MODERATION AND IMPROVED CONVERGENCE IN ECONOMIC PERFORMANCE TO RESTORE CREDIBILITY TO THE ERM AND ALLOW COMPLETION OF THE PROCESS TOWARD MONETARY UNION UNLESS WE REACH THOSE TARGETS A REAL EMU HAS NO CHANCE HE SAID WITH EUROPE IN RECESSION MEETING MAASTRICHT CRITERIA COULD BECOME MORE DIFFICULT MR DUISENBERG SAID BUT HE ADDED THAT THE CENTRAL BANKERS COMMITTEE FEARS THAT THE PROBLEMS AREN'T SOLELY CYCLICAL OUR FEAR IS THAT THERE IS A STRUCTURAL DETERIORATION OF GOVERNMENT FINANCES IN SOME EC COUNTRIES 9304230153 930423 VORNADO NEARS VOTE ON CONVERSION OF FIRM TO REIT BY MILTON G ALLIMADI STAFF REPORTER OF THE WALL STREET JOURNAL SADDLE BROOK NJ REALESTATE COMPANY VORNADO INC WHICH TRACES ITS ROOTS TO A MANHATTAN DECORATING COMPANY INCORPORATED IN 1936 IS NEARING A TRANSITION TO A REAL ESTATE INVESTMENT TRUST VORNADO SHAREHOLDERS WILL VOTE ON THE ISSUE MAY 6 AT A SPECIAL MEETING THE CHANGE WILL CONVERT THE COMPANY INTO VORNADO REALTY TRUST WHICH WILL OWN 52 SHOPPING CENTERS IN SEVEN STATES AS WELL AS EIGHT WAREHOUSE/INDUSTRIAL PROPERTIES BECAUSE REAL ESTATE INVESTMENT TRUSTS PAY NO INCOME TAX IF THEY DISTRIBUTE AT LEAST 95 OF EARNINGS TO SHAREHOLDERS CURRENT INVESTORS WILL REALIZE A SIGNIFICANT JUMP IN THEIR RETURNS WHILE VORNADO CURRENTLY PAYS A QUARTERLY DIVIDEND EQUIVALENT TO 31 CENTS A SHARE AFTER A RECENT STOCK SPLIT THE COMPANY SAYS IT INTENDS TO PAY AT LEAST 44 CENTS A SHARE FOR ITS FIRST FOUR QUARTERS AS A REIT THE TRANSITION REQUIRES A NUMBER OF STEPS INCLUDING THE SUCCESSFUL PUBLIC OFFERING OF FIVE MILLION SHARES IN THE TRUST AND A CASH DISTRIBUTION TO EXISTING SHAREHOLDERS APPROVAL BY SHAREHOLDERS IS EXPECTED SINCE OFFICERS AND DIRECTORS HOLD 52 OF THE COMMON STOCK INTERSTATE PROPERTIES A REALESTATE COMPANY HEADED BY STEVEN ROTH VORNADO'S CHAIRMAN AND CHIEF EXECUTIVE OWNS 448 OF VORNADO'S COMMON STOCK THE 51YEAROLD MR ROTH OWNS ANOTHER 47 AFTER THE OFFERING OF REIT SHARES INTERSTATE AND MR ROTH WILL OWN 378 OF THE OUTSTANDING SHARES THE PROSPECTUS ESTIMATES THE OFFERING PRICE AT 36375 A SHARE VORNADO WILL USE 54 MILLION OF THE PROCEEDS TO PAY EXISTING SHAREHOLDERS A 336 A SHARE DIVIDEND AND 75 MILLION TO PREPAY DEBT CONVERSION TO A REIT OFFERS VORNADO CONSIDERABLE ADVANTAGES IN TERMS OF CASH AVAILABLE TO SHAREHOLDERS FOR EXAMPLE THE COMPANY REPORTED INCOME FROM CONTINUING OPERATIONS OF 12 MILLION OR SEVEN CENTS A SHARE IN 1992 ON 63 MILLION IN RENTAL REVENUE BUT ON A PRO FORMA BASIS IF IT HAD BEEN AN REIT VORNADO REALTY LAST YEAR WOULD HAVE POSTED PROFIT FROM CONTINUING OPERATIONS OF 93 MILLION OR 45 CENTS A SHARE ITS INTEREST EXPENSE WOULD HAVE FALLEN TO 269 MILLION FROM 339 MILLION FROM REPAYMENT OF DEBT AND IT WOULD HAVE HAD NO PROVISION FOR INCOME TAXES MR ROTH VORNADO'S CHAIRMAN AND CEO HAD A GOOD YEAR LAST YEAR IN ADDITION TO HIS 658607 SALARY HE REALIZED 292 MILLION FROM EXERCISING AT THE COMPANY'S REQUEST OPTIONS ON 15 MILLION SHARES THE COMPANY REPURCHASED 750000 OF THE SHARES THIS YEAR TO REDUCE HIS OWNERSHIP IN ORDER TO QUALIFY AS AN REIT THE VORNADO REALTY FILING ESTIMATED THAT STEPUPS IN LEASES AND RENTS WOULD INCREASE FUNDS FROM OPERATIONS BY 142 MILLION OVER THE NEXT FIVE YEARS IT NOTED THAT LEASES LAST YEAR FOR LARGE STORES AVERAGED 893 A SQUARE FOOT WHILE CURRENT LEASES EXPIRING THIS YEAR HAVE AVERAGE RENTS OF 522 A SQUARE FOOT 9304230152 930423 US GROUPS IN PACT TO HELP RESTRUCTURE RUSSIAN ELECTRIC SYSTEM TYSONS CORNER VA EDISON ELECTRIC INSTITUTE THE US ENERGY ASSOCIATION AND THE US AGENCY FOR INTERNATIONAL DEVELOPMENT SAID THEY REACHED AN AGREEMENT WITH RUSSIA'S CHIEF ELECTRIC UTILITY COMPANY TO ASSIST IN RESTRUCTURING THE RUSSIAN ELECTRIC SYSTEM UNDER TERMS OF THE AGREEMENT THE THREE ORGANIZATIONS WILL PROVIDE GENERAL GUIDANCE TO RUSSIAN JOINT STOCK CO FOR POWER & ELECTRIFICATION ON ISSUES SUCH AS PRIVATIZATION REGULATION SECURITIES AND MARKET ECONOMY TRAINING EDISON ELECTRIC INSTITUTE AN ASSOCIATION OF AMERICAN INVESTOROWNED UTILITIES SAID THE US AGENCY FOR INTERNATIONAL DEVELOPMENT WILL FUND EXPENSES FOR THE PROGRAM RUSSIAN JOINT STOCK CO FOR POWER & ELECTRIFICATION WITH 12 MILLION EMPLOYEES HAS AN INSTALLED ELECTRIC CAPACITY OF 200000 MEGAWATTS AND ITS TRANSMISSION GRID COVERS 11 TIME ZONES RUSSIAN JOINT STOCK CO ALSO CONTROLS DIRECTLY OR INDIRECTLY THE COUNTRY'S NONNUCLEAR POWER PLANTS BY COMPARISON THE US HAS AN INSTALLED CAPACITY OF ABOUT 700000 MEGAWATTS 9304230151 930423 NEPAL IS MOVING TO PRIVATIZE STOCK EXCHANGE DEVELOPING NATION IS SELLING GOVERNMENT BUSINESSES TO BOOST PRIVATE SECTOR BY JIM OTTAWAY JR SPECIAL TO THE WALL STREET JOURNAL KATMANDU NEPAL THE GOVERNMENT OF NEPAL PLANS TO PRIVATIZE SOON ITS SMALL BUT GROWING STOCK EXCHANGE AS PART OF A PROGRAM TO GRADUALLY SELL OFF 64 GOVERNMENTOWNED BUSINESSES THE MOVES SEEK TO BUILD UP THE PRIVATE SECTOR IN THIS DEVELOPING NATION OF 19 MILLION PEOPLE AS WELL AS TO GIVE BUSINESSES A LESS COSTLY ALTERNATIVE TO BANK BORROWING FOR THEIR CAPITALRAISING NEEDS IN THE PROCESS THE GOVERNMENT HOPES TO ATTRACT OVERSEAS INVESTORS WE WANT TO OPEN OUR MARKET FOR FOREIGN INVESTMENT SAYS DAMBER P DUNGEL EXECUTIVE DIRECTOR OF THE STOCK EXCHANGE WHICH IS KNOWN AS THE SECURITIES EXCHANGE CENTER AND IS OVERSEEN BY THE FINANCE MINISTRY PRIME MINISTER GIRIGA PRASAD KOIRALA IS PROMOTING THE PRIVATIZATION PROGRAM WITH SPEECHES CALLING FOR MORE FREE ENTERPRISE IN A MORE OPENMARKET ECONOMY MR KOIRALA'S NEPAL CONGRESS PARTY WON A NARROW VICTORY OVER THE UNITED MARXISTLENINIST COMMUNIST PARTIES IN MAY 1991 ELECTIONS THE POLL FOLLOWED AN APRIL 1990 REVOLUTION THAT REDUCED THE KING OF NEPAL TO A CONSTITUTIONAL MONARCH AND LED TO A NEW DEMOCRATIC PARLIAMENTARY CONSTITUTION MR DUNGEL WHO STUDIED DEVELOPMENT BANKING IN BRITAIN BEFORE TAKING HIS STOCKEXCHANGE POST SAID IN AN INTERVIEW THAT NEW STOCKEXCHANGE TRADING REGULATIONS ARE BEING REVIEWED BY THE FINANCE MINISTRY FOR APPROVAL THESE INCLUDE THE RIGHT OF FOREIGNERS TO PURCHASE SHARES DIRECTLY TO ACT AS STOCKBROKERS AND MARKET MAKERS AND TO BECOME MEMBERS OF THE NEWLY PRIVATIZED STOCK EXCHANGE HE SAID THE GOVERNMENT ALSO PLANS TO SET UP A SECURITIES EXCHANGE COMMISSION THE NEW YORK STOCK EXCHANGE STARTED UNDER AN OAK TREE MR DUNGEL SAID WITH A SMILE OURS IS STARTING UNDER THE UMBRELLA OF THE GOVERNMENT TO INTRODUCE THE IDEA OF PUBLICLY OWNED CORPORATIONS AND SHARES OF STOCK TO THE PUBLIC UNLESS WE CREATE CONFIDENCE IN OUR STOCK MARKET PEOPLE WILL NOT INVEST IN OUR NEWLY PRIVATIZED COMPANIES MR DUNGEL SAID HE PLANS TO SELL AT LEAST 25 OF THE OWNERSHIP OF THE SECURITIES EXCHANGE CENTER ITSELF TO FINANCIAL INSTITUTIONS AND BROKERS IN THE NEXT FEW MONTHS AND TO EVENTUALLY PRIVATIZE IT FULLY THE PRIVATIZATION PROGRAM HAS FORCED GOVERNMENT PLANNERS AND POLITICIANS TO SEE THE NEED FOR AN INDEPENDENT AND EFFICIENT CAPITAL MARKET SUCH A MARKET WOULD ALLOW THE NEW MANAGERS OF FORMER GOVERNMENT COMPANIES TO RAISE FUNDS NEEDED TO MODERNIZE OLDER ENTERPRISES BY SELLING EQUITY SHARESA CHEAPER ALTERNATIVE TO THE CONVENTIONAL METHOD OF BORROWING FROM BANKS AT HIGH INTEREST RATES THE SECURITIES EXCHANGE CENTER WAS STARTED IN 1986 WITH ONLY SIX LISTED STOCKS BY THE END OF ITS FIRST FULL YEAR OF OPERATION IN JULY 1987 THERE WERE 23 LISTED COMPANIES WITH A TOTAL MARKET VALUE OF 143 MILLION BY LAST MONTH THERE WERE 59 LISTED STOCKS WITH A TOTAL MARKET VALUE OF 83 MILLION THE NUMBER OF SHAREHOLDERS HAS JUMPED TO 70000 TODAY FROM 3500 IN JULY 1987 MR DUNGEL SAID AND THE ANNUAL TRADING VOLUME IN THIS OVERTHECOUNTER MARKET WILL HAVE RISEN TO AN ESTIMATED 50 MILLION TO 60 MILLION SHARES FOR THE YEAR ENDING JULY 1993 FROM ONLY 81 MILLION SHARES IN 198687 MR DUNGEL SAID THAT MOST PUBLICLY OWNED COMPANIES' CONTROLLING SHAREHOLDERS ARE WILLING TO SELL ONLY 15 TO 20 OF THEIR EQUITY TO THE PUBLIC ALL PUBLICLY HELD COMPANIES MUST REPORT THEIR RESULTS ONCE A YEAR AFTER AN AUDIT BY THE FINANCE MINISTRY AND ALL SHARES BOUGHT OR SOLD ON THE NEPAL EXCHANGE MUST BE REGISTERED THE SHARE OF GOVERNMENT OWNERSHIP OF PRIVATIZED COMPANIES WITH PUBLICLY LISTED STOCK HAD DROPPED TO 42 BY LAST YEAR FROM 68 IN 1987 PRIVATE BUSINESS OWNERSHIP HAS GROWN TO 11 FROM 3 DURING THE SAME PERIOD AND INDIVIDUAL STOCK OWNERSHIP TO 33 FROM 21 THE SECURITIES EXCHANGE CENTER IS LOCATED IN A TWOSTORY RENTED BUILDING ON DILLIBAZAR STREET JUST OFF PUTALISADAK THE STREET OF BUTTERFLIES IN THE BUSINESS DISTRICT OF KATMANDU NEAR THE PRIME MINISTER'S OFFICE FOUR CLERICAL EMPLOYEES AND ONE SUPERVISOR RUN THE STOCK MARKET BY MATCHING BUYERS AND SELLERS OVER THE TELEPHONE AFTER PRIVATIZATION OF THE STOCK EXCHANGE MR DUNGEL HOPES THAT MEMBER BROKERS WILL CONVERT IT TO THE AUCTIONROOM METHOD THE FIRST THREE GOVERNMENT COMPANIES WERE SOLD TO PRIVATE COMPANIES IN JULY 1992 GOLCHA GROUP OF NEPAL BOUGHT A GOVERNMENT CONCERN THAT MAKES PRINTING AND WRITING PAPER NARSIMHA BAHADUR SHRESTHA A TOP NEPAL CONSTRUCTION COMPANY PURCHASED A BRICK AND TILE FACTORY AND A FOREIGN INVESTOR LEATHERDGE INDIA LTD OF KAMPUR INDIA BOUGHT A LEATHER BAG AND SHOE FACTORY MR DUNGEL SAID THE BRICK AND TILE FACTORY HAS ALREADY TRIPLED PRODUCTION USING THE SAME MACHINERY BUT MORE EFFICIENT PRIVATEENTERPRISE MANAGEMENT TECHNIQUES HE SAID THIS INITIAL SUCCESS WITH THE PRIVATIZATION PROGRAM LED TO CONSIDERATION OF SELLING ALL OR PART OF 14 MORE GOVERNMENT INDUSTRIES NEXT HE HOPES TO SELL FIVE MORE BY THE END OF THE GOVERNMENT'S FISCAL YEAR IN MIDJULY THEY ARE ANOTHER BRICK AND TILE FACTORY A TOBACCO COMPANY A CONSTRUCTION COMPANY A JUTE MILL AND A MAKER OF AGRICULTURAL TOOLS 9304230149 930423 PEPPERAND SALT THE TIP TRAY AND MINISKIRT IF OUR NEW PRESIDENT'S ECONOMIC PACKAGE FLIES WILL THE OPPOSITION DARE TO CALL IT TAX AND ASCEND TAX AUDIT SCRUTINY ON THE BOUNTY 9304230148 930423 JAPAN'S KAO REPORTS PRETAX PROFIT ROSE 17 FOR FISCAL YEAR SPECIAL TO THE WALL STREET JOURNAL TOKYO KAO CORP A MAJOR JAPANESE MAKER OF SOAP AND OTHER HOUSEHOLD AND PERSONALCARE PRODUCTS REPORTED THAT ITS GROUP PRETAX PROFIT INCREASED 17 DURING THE FISCAL YEAR ENDED MARCH 31 HELPED BY STEADY SALES GROWTH PRETAX PROFIT TOTALED 4532 BILLION YEN 4094 MILLION UP FROM 3862 BILLION YEN NET INCOME EDGED UP JUST 19 TO 2041 BILLION YEN FROM 2004 BILLION YEN SALES ROSE 57 TO 77127 BILLION YEN FROM 72988 BILLION YEN PERSHARE EARNINGS DECREASED REFLECTING AN INCREASE IN THE NUMBER OF SHARES OUTSTANDING AS THE COMPANY CONDUCTED A 1FOR10 STOCK SPLIT DURING THE YEAR FOR THE FISCAL YEAR ENDING MARCH 31 1994 KAO EXPECTS A MODERATE INCREASE FOR ITS GROUP PRETAX PROFIT KAO SAID ITS SALES OF INDUSTRIAL PRODUCTS FELL AMID JAPAN'S ECONOMIC SLOWDOWN BUT HEALTHY SALES GROWTH IN THE HOUSEHOLD PRODUCT DIVISION PUSHED UP OVERALL SALES OF THE 77127 BILLION YEN OF GROUP SALES OVERSEAS SALES AMOUNTED TO 16672 BILLION YEN UP 81 FROM THE YEAR BEFORE OVERSEAS SALES ACCOUNTED FOR 216 OF THE OVERALL SALES UP FROM 211 IN THE PREVIOUS FISCAL YEAR 9304230147 930423 WHO'S NEWS AT CROSS AT CROSS LINCOLN RI RUSSELL A BOSS WAS NAMED CHIEF EXECUTIVE OFFICER TO SUCCEED HIS BROTHER BRADFORD BOSS 60 YEARS OLD WHO WILL GIVE UP THAT ROLE BUT REMAIN THE COMPANY'S CHAIRMAN RUSSELL BOSS 54 JOINED THE WRITING INSTRUMENTS COMPANY IN 1965 AND WAS MOST RECENTLY PRESIDENT AND CHIEF OPERATING OFFICER IN THE LATTER POSITION HE WILL BE SUCCEEDED BY JOHN E BUCKLEY 53 CURRENTLY EXECUTIVE VICE PRESIDENT 9304230146 930423 TECHNOLOGY & HEALTH DELL PLANS TO SELL MACHINES THROUGH WALMART STORES BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL DELL COMPUTER CORP CONTINUING TO EXPAND BEYOND ITS MAILORDER ROOTS SAID IT PLANS TO BEGIN SELLING ITS MACHINES THROUGH WALMART STORES INC THE MOVE INTO WALMART OUTLINED DURING AN ANALYSTS' BRIEFING IN AUSTIN TEXAS COMES AS MANY OF DELL'S COMPETITORS INCLUDING INTERNATIONAL BUSINESS MACHINES CORP AND COMPAQ COMPUTER CORP ARE ELBOWING IN ON DELL'S MAILORDER TURF AS A RESULT OF THOSE EFFORTS AND IN HOPES OF BOOSTING ITS OWN SALES AMONG SMALL BUSINESSES AND HOME COMPUTER USERS DELL HAS BROADENED ITS DISTRIBUTION STRATEGY IN RECENT MONTHS STRIKING DEALS TO SELL ITS MACHINES THROUGH OUTLETS LIKE WALMART'S SAM'S CLUB AS WELL AS SUPERSTORE MERCHANTS LIKE COMPUSA INC WHAT WE ARE SEEING IS A RECOGNITION BY THEM THAT THE DIRECT SIDE OF THE BUSINESS AIN'T WHAT IT USED TO BE SAID SEYMOUR MERRIN A PALO ALTO CALIF COMPUTER RETAIL CONSULTANT THIS IS CLEAR ABSOLUTE CONFIRMATION THAT THEY RECOGNIZE THAT FACT DESPITE WALMART'S GIRTH THE DELL MACHINES WILL BE SOLD THROUGH ABOUT 900 STORES NATIONWIDE ANALYSTS SAY THEY EXPECT THE RETAILER INITIALLY TO BE A RELATIVELY SMALL PLAYER FOR DELL WHICH WILL COMPETE FOR SHELF SPACE AGAINST MACHINES MADE BY PACKARD BELL ELECTRONICS INC A CLOSELY HELD COMPANY ACER INC AND IBM AMONG OTHERS DELL DECLINED TO SAY HOW MANY PCS IT EXPECTS TO SELL THROUGH WALMART THOUGH THE COMPUTER COMPANY DID SAY THAT IT IS IN THE PROCESS OF DOUBLING ITS MANUFACTURING CAPACITY BY YEAR END TO HANDLE INCREASED VOLUMES CURRENTLY ABOUT 80 OF DELL'S SALES COME FROM ITS DIRECT OR MAILORDER OPERATIONS DELL SAID THAT IT IS IN TALKS WITH OTHER MASSMARKET RETAILERS ABOUT FURTHER EXPANDING ITS DISTRIBUTION NETWORK THOSE TALKS WHICH THE COMPANY SAYS ARE FOCUSED ON OTHER LOWOVERHEAD HIGHVOLUME RESELLERS HAVE PROMPTED SOME SPECULATION THAT DELL COULD STRIKE DEALS WITH TRADITIONAL STOREFRONT COMPUTER DEALERS A GROUP LONG MALIGNED BY THE COMPANY AS TOO EXPENSIVE AND INEFFECTIVE ONE TRADITIONAL RESELLER THE 11STORE LEWAN & ASSOCIATES A CLOSELY HELD CHAIN IN DENVER SAID IT ALREADY HAS STRUCK A DEAL TO RESELL DELL MACHINES AND OTHER DEALERS SAY THEY HAVE DISCUSSED THE MATTER WITH THE MAILORDER MERCHANT DEAN KLINE A DELL SPOKESMAN SAID THE COMPANY ON OCCASION DOES SIGN UP STOREFRONT DEALERS AS SOCALLED VALUE ADDED RESELLERS TO SERVICE MAJOR ACCOUNTS BUT MR KLINE SAID THE COMPANY HAS NO PLANS TO VASTLY EXPAND THAT NETWORK YOU DO NOT NEED TO EXPECT US TO BE INVOLVED WITH TRADITIONAL DEALERS HE SAID THAT'S NOT A PARTICULARLY HEALTHY BALL GAME RIGHT NOW 9304230145 930423 BUSINESS BRIEF HSBC HOLDINGS PLC MARINE MIDLAND UNIT POSTS SHARPLY HIGHER NET INCOME MARINE MIDLAND BANKS INC BUFFALO NY REPORTED SHARPLY HIGHER NET INCOME FOR THE FIRST QUARTER TAKING NO PROVISIONS FOR LOAN LOSSES AND RECORDING A GAIN ON CHANGES IN ACCOUNTING FOR INCOME TAXES THE UNIT OF HSBC HOLDINGS PLC REPORTED NET INCOME OF 34 MILLION COMPARED WITH 26 MILLION A YEAR EARLIER EXCLUDING A 40 MILLION GAIN FROM CHANGES IN INCOME TAX REPORTING MARINE MIDLAND HAD A LOSS OF 6 MILLION IN THE FIRST QUARTER THE BANK TOOK NO PROVISION FOR LOAN LOSSES COMPARED WITH A 405 MILLION PROVISION IN 1992 BUT NET INTEREST INCOME FELL 75 TO 226 MILLION FROM 885 MILLION IN 1992 AS THE BANK ACCELERATED AMORTIZATION OF ITS MORTGAGE SERVICING RIGHTS BUSINESS 9304230144 930423 THE AMERICAS CANADIAN BOND MARKET TEETERS WHILE PROVINCES FIDDLE BY ROBERT BLOHM PRIME MINISTER BRIAN MULRONEY'S FEB 24 ANNOUNCEMENT NOT TO RUN FOR REELECTION THIS FALL HAS OPENED THE WAY FOR A NEW NATIONAL LEADER TO TAKE CHARGE OF CANADA'S NO 1 PROBLEM HOW TO AVERT A COMING FOREIGN DEBT CRISIS AT A WIDELY DISCUSSED JAN 27 WORKSHOP AT TORONTO'S VENERABLE CD HOWE RESEARCH INSTITUTE THE CHIEF ECONOMISTS OF CANADA'S FINANCIAL INSTITUTIONS WARNED OF A FOREIGN DEBT CRISIS IN TWO TO THREE YEARS IF THERE IS NO DRAMATIC IMPROVEMENT IN CANADIAN FISCAL POLICY PROVINCIAL MORE THAN FEDERAL INCREASED SPENDING AND TAXRATE HIKES BY PROVINCIAL GOVERNMENTS COMBINED WITH COMPOUNDING INTEREST ON THE BORROWING DONE BY THE FEDERAL GOVERNMENT OF PIERRE TRUDEAU BETWEEN 1974 AND 1984 HAVE LED TO A RAPID INCREASE IN CANADA'S FOREIGN DEBT AT MORE THAN 40 OF GROSS DOMESTIC PRODUCT CANADIANS' FOREIGN DEBT OF 240 BILLION MORE THAN HALF ISSUED BY FEDERAL AND PROVINCIAL GOVERNMENTS IS THE WORLD'S FASTEST GROWING AND SECOND HIGHEST IN ABSOLUTE NUMBERS IT IS FIVE TIMES HIGHER THAN THAT OF THE US RELATIVE TO GDP FISCAL BALANCES ARE EQUALLY SKEWED CANADA'S TOTAL COMBINED FEDERAL AND PROVINCIAL GOVERNMENT BUDGET DEFICITS ARE NEARLY DOUBLE THE US'S RELATIVE TO GDP AND WELL BEYOND WHAT ITALY AND SWEDEN ARE TARGETING SINCE THEIR CURRENCY CRISES OF COURSE HIGH DEBT DOESN'T MATTER IF CREDITORS ARE CONFIDENT OF THE DEBTOR'S PRODUCTIVE ABILITY BUT THIS IS LESS AND LESS THE CASE UNDER CANADA'S SHAKY CONFEDERATION CANADA'S TOTAL ANNUAL GOVERNMENT SPENDING OF 264 BILLION IS HALF OF GDP US GOVERNMENT SPENDING IS ONETHIRD OF GDP ALMOST TWO DECADES OF BORROWING ABROAD EFFECTIVELY TO FINANCE MUCH OF THE EXCESS CANADIAN GOVERNMENT SPENDING WEAKENED THE CANADIAN DOLLAR INITIALLY THIS SHELTERED CANADA'S EXPORT INDUSTRY BY MAKING CANADIAN PRODUCTS CHEAPER TO FOREIGNERS AND KEYED CANADA'S GROWTH IN THE 1980S TO THE STRENGTH OF THE US ECONOMY AS CANADA'S GOVERNMENTS BECAME INCREASINGLY DEPENDENT ON BOND AND TREASURY BILL HOLDERS FROM ABROAD TO FUND ITS SPENDING PROGRAMS THOSE CREDITORS BECAME THE DRIVING FORCE IN DIRECTING THE VALUE OF THE CURRENCY NORMALLY LONGTERM INVESTORS ARE INTERESTED IN A STRONG CURRENCY DRIVEN BY A HEALTHY ECONOMY WITH LOW INTEREST RATES HOWEVER WHEN INVESTORS REJECT A CURRENCY BECAUSE IT HAS NOTHING TO OFFER BUT DEBT THE GOVERNMENT HAS TO OFFER HIGH INTEREST RATES TO ATTRACT INVESTORS CONSEQUENTLY CANADA HAS BECOME BUT A FINANCIAL VEHICLE IN THE FORM OF EASILY SELLABLE GOVERNMENT OF CANADA MARKETABLE DEBT SECURITIES IN MORE THAN A DECADE FOREIGN INVESTORS HAVE INCREASED THEIR HOLDINGS OF THESE SECURITIES TO 24 FROM 10 AND NOW BUY 38 OF THE NEW ISSUES THIS HAS LEFT THE CANADIAN GOVERNMENT LITTLE FLEXIBILITY TO LOWER INTEREST RATES THAT SHORT TERM ARE NEARLY DOUBLE THOSE IN THE US IT ALSO NOW KEEPS CANADA'S CURRENCY HIGH BUT FOR SPECULATIVE REASONS RATHER THAN AS A REFLECTION OF A STRONG CANADIAN ECONOMY THIS IS A SPECULATIVE BALLOON JUST WAITING TO BURST TO RELEASE SOME OF THE PRESSURE THE MULRONEY ADMINISTRATION HAS REDUCED NONINTEREST EXPENDITURE AS A PERCENTAGE OF GDP IT ALSO HAS PRIVATIZED GOVERNMENTOWNED CORPORATIONS AND APPLIED SUPPLYSIDE TAX REFORM BUT PROVINCIAL GOVERNMENTS INCREASED THEIR OWN TAX RATES AND HAVE VIRTUALLY DOUBLED SPENDING MORE THAN A THIRD OF IT ON HEALTH CARE MORE THAN UNDOING THE FEDERAL GOVERNMENT'S OWN DEFICIT REDUCTION AND TAX REFORM HOUSEHOLD TAXES HAVE RISEN BY FAR MORE THAN IN ANY OTHER GROUP OF SEVEN COUNTRY PUTTING CANADA'S TOTAL TAX RECEIPTS AT MORE THAN 40 OF GDP WAY BEYOND THE US'S AND JAPAN'S AT 32 AND 33 RESPECTIVELY RELATIVE TO GDP THE FEDERAL DEBT HAS RISEN BY HALF OVER THE PAST DECADE TO MORE THAN 360 BILLION WHILE TOTAL PROVINCIAL DEBT HAS DOUBLED TO MORE THAN 180 BILLION TOTAL COMBINED ANNUAL PROVINCIAL GOVERNMENT BUDGET DEFICITS NOW NEARLY EQUAL THE ANNUAL FEDERAL DEFICIT REFLECTING INVESTOR CONCERN OVER PROVINCIAL SPENDING THE PROVINCIAL SHARE OF FOREIGN HOLDINGS OF CANADIAN DEBT HAS DROPPED DRAMATICALLY FOLLOWING A MARCH 8 WARNING BY MOODY'S SOME ANALYSTS EXPECT ACROSSTHEBOARD REDUCTIONS IN THE CREDIT RATINGS OF CANADA'S GOVERNMENT BORROWERS PARTICULARLY PROVINCIAL BORROWERS BY NEXT YEAR A DEBT CRISIS WOULD BEGIN WHEN PROVINCES COULD NO LONGER ROLL OVER THEIR MATURING FOREIGN DEBT AT ACCEPTABLE COST THE FEDERAL GOVERNMENT WOULD THEN TAKE OVER THEIR FINANCES THROUGH AN AGENCY IT IS RUMORED TO BE SETTING UP ONCE THE FEDERAL GOVERNMENT DID THIS FOR ENOUGH PROVINCES ITS OWN CREDIT QUALITY COULD DETERIORATE TO THE POINT WHERE TOO MANY FOREIGNERS MIGHT REJECT ITS SECURITIES IT MIGHT THEN RESORT TO A MASSIVE INFLATIONARY DEVALUATION OF THE CANADIAN DOLLAR MAKING FOREIGNERS SUDDENLY WANT TO HOLD ON TO ITS SECURITIES TO AVOID REALIZING LOSSES FROM THE CURRENCY DROP OR EVEN TO BUY MORE SECURITIES TO PROFIT FROM A RISING CURRENCY IN THEIR FORTHCOMING ANNUAL BUDGETS THE GOVERNMENTS OF QUEBEC AND ONTARIO WILL LIKELY ANNOUNCE THAT DEFICIT REDUCTION WILL COME EXCLUSIVELY FROM TAX RATE INCREASES AS IS THE CASE IN MOST OF THE OTHER PROVINCES' JUSTRELEASED BUDGETS THIS OF COURSE IS NO SOLUTION TO THEIR FISCAL OR MONETARY PROBLEMS CANADA IS RIPE FOR FURTHER PRIVATESECTOR GROWTH INITIATIVES ESPECIALLY BY PROVINCIAL GOVERNMENTS THROUGH TAX RATE REDUCTIONS AND FURTHER DEREGULATION AND PRIVATIZATION FOR STARTERS PRIVATIZING THE GENERATION ARMS OF THE HYDROQUEBEC AND ONTARIO HYDRO MEGAUTILITIES WOULD BRING COST COMPETITION AND POTENTIAL REDUCTIONS IN THE PROVINCES' NET FOREIGN DEBT IRONICALLY THE SEPARATION OF QUEBEC FROM CANADA NEED NOT EXACERBATE CANADA'S DEBT CRISIS THE FEDERAL GOVERNMENT WOULD NO LONGER STAND READY TO BAIL OUT QUEBEC'S GOVERNMENT FROM A RUN ON THE PROVINCE'S DEBT AS INVESTORS WOULDN'T EAGERLY HOLD THE QUARTER OF THE GOVERNMENT OF CANADA SECURITIES CONVERTED TO SOVEREIGN QUEBEC GOVERNMENT BONDS INTEREST RATES WOULD GO UP IN QUEBEC AND DOWN ON THE REDUCED SUPPLY OF BONA FIDE GOVERNMENT OF CANADA SECURITIES AN ECONOMIC STABILIZATION SUMMIT SHOULD BE CALLED BY CANADA'S NEW LEADER IMMEDIATELY AFTER THE FALL ELECTIONS IF THE FEDERAL GOVERNMENT OF CANADA BECOMES THE LENDER OF LAST RESORT TO THE PROVINCES AS A RESULT OF A DEBT CRISIS THEN IT HAS THE RIGHT TO INSIST THAT THOSE PROVINCES UNDER ITS PROTECTIVE WING ADHERE TO MORE RESPONSIBLE AND ENLIGHTENED FISCAL AND MONETARY POLICIES MR BLOHM IS A US INVESTMENT BANKER IN CANADA AND A DOCTORAL CANDIDATE IN ECONOMICS AT COLUMBIA UNIVERSITY 9304230143 930423 WHO'S NEWS NEW VALLEY PRESIDENT RESIGNS UPPER SADDLE RIVER NJ NEW VALLEY CORP SAID ITS PRESIDENT AND CHIEF OPERATING OFFICER JAMES F CALVANO 56 YEARS OLD RESIGNED TO PURSUE OTHER INTERESTS ROBERT J AMMAN 54 VICE CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILL ASSUME THE POSITION OF PRESIDENT MR CALVANO COULDN'T BE REACHED FOR COMMENT NEW VALLEY WHICH RECENTLY FILED FOR CHAPTER 11 BANKRUPTCY COURT PROTECTION OPERATES ITS MAIN BUSINESS THROUGH WESTERN UNION FINANCIAL SERVICES INC A MONEY TRANSFER AND FINANCIAL SERVICES UNIT 9304230142 930423 ALABAMA GOVERNOR REMOVED FROM JOB AFTER ETHICS VERDICT BY GLENN RUFFENACH STAFF REPORTER OF THE WALL STREET JOURNAL ALABAMA'S REPUBLICAN GOVERNOR GUY HUNT WAS REMOVED FROM OFFICE AFTER BEING CONVICTED OF USING 200000 FROM AN INAUGURAL FUND FOR PERSONAL GAIN A VIOLATION OF THE STATE'S ETHICS LAW THE DECISION REACHED YESTERDAY BY A JURY IN CIRCUIT COURT IN MONTGOMERY CAME AFTER A TWOWEEK TRIAL AND JUST TWO HOURS OF DELIBERATIONS UNDER STATE LAW ALABAMA'S 43YEAROLD LIEUTENANT GOVERNOR JIM FOLSOM SON OF THE LATE JAMES E FOLSOM TWICE GOVERNOR OF ALABAMA IN THE 1940S AND 1950S AUTOMATICALLY BECAME GOVERNOR UPON MR HUNT'S CONVICTION MR HUNT'S ATTORNEY GEORGE BECK TOLD THE ASSOCIATED PRESS THAT HE DIDN'T KNOW HOW QUICKLY AN APPEAL WILL BE FILED IF AN APPEAL IS SUCCESSFUL MR HUNT WILL BE RETURNED TO OFFICE MR HUNT 59 YEARS OLD THE FIRST REPUBLICAN TO BE ELECTED GOVERNOR IN ALABAMA IN THIS CENTURY IS THE FIRST GOVERNOR IN THE STATE'S HISTORY TO BE REMOVED FROM OFFICE AFTER BEING CONVICTED OF A FELONY HE FACES A MAXIMUM PRISON SENTENCE OF 10 YEARS AND A FINE OF AS MUCH AS 10000 JUDGE RANDALL THOMAS SET A PRESENTENCING HEARING FOR MAY 7 MR HUNT MOVED INTO THE GOVERNOR'S MANSION IN 1987 AND WAS REELECTED IN 1990 IN DECEMBER A GRAND JURY INDICTED THE FORMER FARMER AND BAPTIST PREACHER ALONG WITH THREE ASSOCIATES ON ONE COUNT OF VIOLATING THE STATE ETHICS LAW AND 12 COUNTS OF THEFT AND CONSPIRACY MR HUNT WAS CHARGED WITH DIVERTING 200000 FROM HIS 1987 INAUGURATION FUND TO CAMPAIGN ACCOUNTS AND THEN FOR HIS PERSONAL USE ALL THE COUNTS EXCEPT THE ETHICS CHARGE WERE EVENTUALLY DROPPED UNDER THE STATUTE OF LIMITATIONS IN THE TRIAL MR HUNT'S ATTORNEY STATED THAT THE MONEY WAS USED BY THE GOVERNOR SIMPLY TO REPAY OLD CAMPAIGN DEBTS BUT PROSECUTORS ARGUED THAT MR HUNT HAD ALREADY TAKEN CARE OF THOSE DEBTS AND THAT THE DIVERSION OF FUNDS WAS A CLASSIC MONEYLAUNDERING SCHEME ALABAMA'S ETHICS LAW MOST AGREE IS UNCLEAR ON THE WAYS IN WHICH ELECTED OFFICIALS MAY USE CONTRIBUTIONS TO THEIR CAMPAIGNS INDEED THE USE OF SUCH FUNDS FOR PERSONAL REASONS IS THOUGHT TO BE COMMONPLACE IN THE STATE HOWEVER IN HIS INSTRUCTIONS TO THE JURY JUDGE RANDALL SAID THE STATE ETHICS LAW PROHIBITS SUCH FUNDS FROM BEING USED FOR PERSONAL GAIN IF THE VERDICT HOLDS THERE'S GOING TO HAVE TO BE A CHANGE IN BEHAVIOR HERE AMONG ELECTED OFFICIALS SAID ROBERT J NORRELL ASSOCIATE PROFESSOR OF HISTORY AT THE UNIVERSITY OF ALABAMA HE ADDED THAT THE MOST LIKELY FALLOUT FROM THE CASE WILL BE THE INTRODUCTION OF BILLS IN THE STATE LEGISLATURE TO GOVERN CAMPAIGN FINANCING IT'S HIGH TIME FOR THAT BOTH HERE AND ACROSS THE COUNTRY MR NORRELL SAID 9304230141 930423 PHYSICIANS INSURANCE BUYBACK PICKERINGTON OHIO PHYSICIANS INSURANCE CO OF OHIO SAID IT REACHED AN AGREEMENT TO BUY ALL OF ITS CLASS B SHARES FROM THE OHIO STATE MEDICAL ASSOCIATION FOR 1 MILLION THE 36000 CLASS B SHARES REPRESENT VOTING CONTROL OF PHYSICIANS INSURANCE BECAUSE THEY CARRY 100 VOTES EACH WHILE THE CLASS A SHARES CARRY ONE VOTE EACH THERE ARE 304 MILLION CLASS A SHARES OUTSTANDING THE MEDICAL PROFESSIONAL LIABILITY INSURANCE PROVIDER SAID THE PURCHASE WILL GIVE IT CONTROL OVER ITS FUTURE COURSE 9304230140 930423 TURNER CORP GETS ATLANTA JOB NEW YORK TURNER CORP SAID ITS TURNER CONSTRUCTION CO UNIT RECEIVED A CONTRACT TO DESIGN AND BUILD A 56 MILLION DETENTION CENTER FOR THE CITY OF ATLANTA THE BUILDING COMPANY SAID THE DIRECT SUPERVISION JAIL WILL INCLUDE THE LATEST IN CORRECTIONS PROGRAMMING AND TECHNOLOGY CONSTRUCTION OF THE 480000SQUAREFOOT DETENTION CENTER WILL BE COMPLETED IN DECEMBER 1994 TURNER SAID 9304230139 930423 LETTERS TO THE EDITOR THE NEVERENDING SEARCH FOR ANITA IN AN EXCERPT FROM HIS NEW BOOK DAVID BROCK SKEWERS ANITA HILL WITH THE ZEAL AND DELIGHT OF NERO WATCHING A CHRISTIAN BEING EATEN ALIVE BY THE LIONS THE REAL ANITA HILL EDITORIAL PAGE APRIL 9 UNLESS MR BROCK'S RESEARCH FOR HIS BOOK WAS TAINTED OR LIMITED BY HIS UTTERLY BIASED VIEW HE KNOWS QUITE WELL THAT THERE WAS MORE THAN ONE FORMER FEMALE SUBORDINATE OF CLARENCE THOMAS WHO WAS NOT ALLOWED TO TESTIFY ABOUT PREVIOUS ALLEGED INSTANCES OF SEXUAL HARASSMENT BY MR THOMAS FURTHERMORE AS ANY WOMAN WHO HAS FILED A FORMAL OR INFORMAL COMPLAINT ALLEGING SEXUAL HARASSMENT WILL ATTEST THE REAL ANITA HILL HAD NOTHING TO GAIN AND EVERYTHING TO LOSE BY TESTIFYING SHE IS NOT CLASSED WITH VICTIMS OF OTHER KINDS OF ASSAULT BUT RATHER IS PEGGED IMMEDIATELY AS A HALFMAD ACCUSER JUST AS HAPPENED WITH ANITA HILL HER CHARACTER AND VERACITY ARE DRAGGED THROUGH THE MUD WHEN THE FOCUS OF THE INQUIRY SHOULD BE ON THE INCIDENT OF THE HARASSMENT INSTEAD THE ALLEGED HARASSER SHOULD NOT BE PRESUMED GUILTY BUT THE ALLEGED VICTIM SHOULD NOT BE PRESUMED A LIAR EITHER CERTAIN MEMBERS OF THE JUDICIARY COMMITTEE ESPECIALLY SEN ALAN SIMPSON R WYO NEVER EVEN CONSIDERED FOR A MOMENT THAT THERE MIGHT BE ANY TRUTH TO PROF HILL'S ALLEGATIONS LAMENTING INSTEAD THAT THE COMMITTEE WAS WASTING TIME ON WHAT SEN SIMPSON CALLED THIS SEXUAL HARASSMENT CRAP IN FACT SEN SIMPSON'S GRANDSTANDING WAS OUTRIGHTLY DUPLICITOUS HE BEMOANED THE FACT THAT THE FEDERAL RULES OF EVIDENCE COULD NOT BE USED DURING THE HEARING STATING THAT JUDGE THOMAS WOULD GET MUCH FAIRER TREATMENT BEFORE THE COMMITTEE IF THE RULES COULD BE USED HOWEVER AS SEN SIMPSON WELL KNOWS IF THE FEDERAL RULES OF EVIDENCE HAD BEEN USED DURING THE HEARINGS NONE OF THE SELFSERVING SPEECHES OCCURRING DURING THE TESTIMONY OF JUDGE THOMAS OR THE QUESTIONING BY SEN SIMPSON AND HIS COLLEAGUES WOULD HAVE BEEN ADMISSIBLE OR EVEN ALLOWED I WAS ESPECIALLY INTRIGUED BY THE QUOTE ATTRIBUTED TO ANN SCALES OF THE UNIVERSITY OF NEW MEXICO FEMINIST ANALYSIS BEGINS WITH THE PRINCIPLE THAT OBJECTIVE REALITY IS A MYTH SUDDENLY A LIGHT CAME ON NOW I GET IT CLEARLY THE ULTIMATE FEMINIST ROLE MODEL IS THE QUEEN IN ALICE IN WONDERLAND IN FACT THAT ENTIRE STORY BY LEWIS CARROLL BECOMES A CASE STUDY IN THE FUTILITY OF MEN AS REPRESENTED BY ALICE TRYING TO UNDERSTAND WOMEN AS REPRESENTED BY THE COLLECTION OF EVENTS THAT TAKE PLACE IN WONDERLAND SENTENCE FIRST TRIAL LATER SAID THE QUEEN THIS WAS THE MODEL FOR THE NEW DEFINITION OF SEXUAL HARASSMENT THE MORE I THINK ABOUT IT THE MORE PARALLELS I SEE OOOPS CAN'T THINK ANYMORE SORRY LATE FOR TEA MUST HURRY BYE BYE MR BROCK ASSERTS THAT CLARENCE THOMAS WAS DENIED BENEFIT OF THE PRESUMPTION THAT AN ACCUSED PARTY IS INNOCENT UNTIL PROVEN GUILTY HE PROCEEDS TO WARN GRAVELY THAT THIS SUPPOSED DENIAL IF ALLOWED TO GO UNCHECKED MAY INFRINGE THE RIGHTS OF THE ACCUSED IN OTHER AREAS AND THEREFORE HAS IMPORTANT IMPLICATIONS FOR THE WHOLE OF OUR LEGAL SYSTEM MR BROCK OUGHT TO FAMILIARIZE HIMSELF A LITTLE MORE WITH THE WHOLE OF OUR LEGAL SYSTEM IN THE FIRST INSTANCE THE PRESUMPTION OF INNOCENCE IS ONE PECULIAR TO THE CRIMINAL LEGAL SYSTEM INDEED THE NOTION OF INNOCENCE OR GUILT AS OPPOSED TO LIABILITY SIMPLY HAS NO PLACE IN CIVIL JURISPRUDENCE MORE FUNDAMENTALLY THOUGH MR BROCK MISSES THE BASIC POINT THAT MR THOMAS WAS NOT A CRIMINAL DEFENDANT HE WAS A NOMINEE FOR A LIFETENURE SEAT ON AMERICA'S HIGHEST COURT UNLESS MR BROCK THINKS THAT BEING DENIED A SEAT ON THE SUPREME COURT IS ON A PAR WITH IMPRISONMENT HE MAY WISH TO CONSIDER WHETHER NOMINEES TO JUDICIAL OFFICE ESPECIALLY AT THE HIGHEST LEVELS SHOULD BE REGARDED AS PRESUMPTIVELY QUALIFIED I ADMIRE MR BROCK'S HEARTFELT SOLICITUDE FOR THE RIGHTS OF CRIMINAL DEFENDANTS INDEED THE WALL STREET JOURNAL IS ALSO TO BE COMMENDED FOR ITS NEWFOUND INTEREST IN THE SUBJECT BUT YOU AND MR BROCK DELUDE YOURSELVES IN IMAGINING THAT CLARENCE THOMAS'S ORDEAL HAS ANYTHING TO DO WITH CRIMINAL LAW MR BROCK PRESENTED SOME FACTS THAT WOULD HAVE BEEN SHOCKING EXCEPT THAT THEY ARE ALL TOO FAMILIAR AS THE AUTHOR POINTS OUT BEHIND THE SLOGAN YOU JUST DON'T GET IT IS THE PSEUDOINTELLECTUAL BROMIDE TO THE EFFECT THAT MEN EITHER BECAUSE THEY ARE MEN OR BECAUSE THEY HAVE BEEN BROUGHT UP UNDER CAPITALISM ARE CONSTITUTIONALLY INCAPABLE OF UNDERSTANDING THE THOUGHTS OF WOMEN TO SUCH A FUNDAMENTAL DEGREE THAT WHAT THEY REGARD AS A LIE IS ACTUALLY WHEN CONTEMPLATED FROM THE FEMINIST PERSPECTIVE A PROFOUND TRUTH STUDENTS OF THE 20TH CENTURY RECOGNIZE IN THIS A REPLAY OF THE MARXISTLENINIST DOCTRINE THAT THE BOURGEOISIE SIMPLY CANNOT UNDERSTAND THE PROLETARIAT BECAUSE OF THE DIFFERENCE IN CLASS ORIGINS SANTAYANA AND ORWELL WERE BOTH RIGHT MR BROCK'S ANALYSIS OF THE NEW FEMINIST LOGIC ARISING FROM THE HILLTHOMAS EPISODE IN DESCRIBING A THREAT TO PRINCIPLES OF AMERICAN JURISPRUDENCE RAISES AN EVEN GREATER THREAT THAT SHOULD NOT GO UNNOTICED MR BROCK POINTS OUT THE FRIGHTENING DIRECTION A FEMINIST JURISPRUDENCE WOULD HAVE US TAKE TOWARD THE LEGAL PRESUMPTION THAT ALWAYS FAVORS THE ACCUSER IN OPPOSITION TO THIS MALEDOMINATED SOCIETY'S PRESUMPTION OF INNOCENCE ESPECIALLY IN CASES OF HIS WORD AGAINST HERS HE CONNECTS THIS DEVELOPMENT OF FEMINIST LOGIC NOURISHED BY THE HILLTHOMAS CASE TO THE ENDSBASED LOGIC THAT IS TEARING IN SO MANY WAYS AT OUR NATIONAL FABRIC THUS IF YOU DON'T LIKE THE POLITICAL OR JUDICIAL OUTCOME SUBVERT THE LEGAL SYSTEM IF YOU DON'T LIKE ABORTION SHOOT THE DOCTOR IF YOU DON'T LIKE AMERICA'S WORLD POLITICS BOMB THE TOWERS IF YOU DON'T LIKE THE VERDICT TRASH THE CITY I AM SURE THAT THE GENESIS OF SUCH VIOLENCE IS IN EACH CASE AN HONORABLE TRUTH BUT WHAT ARE THE LIMITS OF THIS FRENZY OF CONVICTION OF THIS VIOLENCE OF TRUTH AND RIGHT MR BROCK POINTS OUT THAT THOSE INVOLVED IN WATERGATE AND IRANCONTRA WERE PURSUING A HIGHER' GOOD IN TELLING LIES AND VIOLATING LAWS HE REMINDS US THAT ADMINISTRATIONS HAVE SANCTIONED CERTAIN ACTIONS UNDER THE MORALITY OF ENDS EVEN AS OUR CONSTITUTION AND ITS PROCEDURAL GUARANTEES ARE GROUNDED IN THE NOTION THAT THE LOCUS OF MORALITY IS IN THE MEANS A GOVERNMENT THAT CANNOT RESPECT THIS VITAL PRINCIPLE OF LAW THIS BASIS OF OUR SOCIAL NORMS WILL BE HARD PRESSED TO DEMAND SUCH RESPECT FROM ITS OWN PEOPLE LET ALONE PEOPLE AROUND THE WORLD FOR SO MANY CAUSES NOW THE ATTITUDE SEEMS TO BE ANYTHING GOES IT IS AN UNFORTUNATE TURN OF EVENTS FOR OUR NATION FOR WITH EVERYTHING ELSE WILL GO THE CONFIDENCE AND THE SECURITY WE HAVE SO GREATLY TAKEN FOR GRANTED AND SO LITTLE APPRECIATED 9304230138 930423 HEARD ON THE STREET CREE'S BLUE LIGHT HAS BEWITCHED IPO INVESTORS BUT IT ISN'T CLEAR IF THERE'S A POT OF GOLD AHEAD BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHILE MANY NEW STOCK ISSUES ARE BEING GREETED WITH INCREASING SKEPTICISM IN THE MARKET THESE DAYS CREE RESEARCH IS SOARING ON A BLUE LIGHT AND A PRAYER SHARES OF THE DURHAM NC TECHNOLOGY COMPANY HAVE NEARLY TRIPLED TO 23 1/2 SINCE THE FEB 9 INITIAL PUBLIC OFFERING AT 8 1/4 GIVING THE COMPANY A STOCK MARKET VALUE OF 120 MILLION CREE MAKES A LIGHTEMITTING DIODE FOR COMPUTER SCREENS THAT HAS THE SINGULAR VIRTUE OF GLOWING BLUE ALLOWING FULL COLOR IMAGES WHEN COMBINED WITH RED AND GREEN LEDS THIS IS THE FIRST OF THE COMPANY'S PRODUCTS USING THE PROMISING BUT STUBBORN MATERIAL SILICON CARBIDE AS OPPOSED TO GARDENVARIETY SILICON THE IPO IS THE BIGGEST PERCENTAGE GAINER SO FAR THIS YEAR OUTPACING OTHER HOT NEW ISSUES SUCH AS S3 POWERSOFT UNIVERSAL ELECTRONICS AND THE KIDDIECLOTHES STOCK GYMBOREE MOREOVER CREE IS THE ONLY COMMONSTOCK IPO LAUNCHED DURING THE FIRST QUARTER THAT IS TRADING AT DOUBLE ITS OFFERING PRICE OR MORE SAYS IDD INFORMATION SERVICES QUITE A SWITCH FROM THE IPO MARKET'S SPECULATIVE HEIGHTS OF LAST YEAR WHEN STOCKS WERE ROUTINELY DOUBLING AND IN MANY CASES HITTING THE SKIDS AFTERWARD WHY ALL THE EXCITEMENT ABOUT CREE TRADERS IN THE NASDAQ OVERTHECOUNTER MARKET SAY THE COMPANY AT LEAST HAS A VIABLESOUNDING PRODUCT THAT'S NEWS UNFORTUNATELY IN THE IPO FIELD SOME GOVERNMENT CONTRACTS AND PROSPECTS FOR OTHER PRODUCTS USING ITS SILICONCARBIDE TECHNOLOGY AND INVESTORS ARE PLEASED THAT THE COMPANY RUN BY 33YEAROLD CHAIRMAN C ERIC HUNTER AND OTHER YOUNG FORMER NORTH CAROLINA STATE UNIVERSITY RESEARCHERS SEEMS TO HAVE THE BACKING OF GIANT GENERAL ELECTRIC THE GE PENSION FUND HAS DISCLOSED A 55 STAKE IN CREE FOR INVESTMENT PURPOSES ONLY ALSO GE'S RECENTLY RETIRED HEAD OF CORPORATE RESEARCH AND DEVELOPMENT WALTER L ROBB HAS SIGNED ON AS A CREE DIRECTOR THE GE ASSOCIATION HAS HELPED CONCEDES CREE'S CHIEF FINANCIAL OFFICER ALAN ROBERTSON WHO AT 30 IS EVEN YOUNGER THAN MR HUNTER HE SAYS THE COMPANY DID WELL ON AN EXHAUSTING PREOFFERING ROADSHOW TO DRUM UP SUPPORT FOR THE IPO WHICH HIT AT LEAST 10 CITIES IN THREE WEEKS WE MADE A LOT OF CONTACTS SAYS MR ROBERTSON I THINK A LOT OF PEOPLE HAVE GOTTEN THE STORY AT YESTERDAY'S CLOSING PRICE CREE STOCK IS NOW AT A FROTHY 168 TIMES EARNINGS OF 14 CENTS A SHARE PROJECTED FOR THE FISCAL YEAR ENDING IN JUNE BY AN ANALYST AT PAULSON CAPITAL'S PAULSON INVESTMENT CO WHICH DID THE CREE UNDERWRITING THE P/E RATIO IS 50 TIMES PROJECTED 1994 EARNINGS KEITH GOGGIN MANAGING EDITOR OF THE NEWSLETTER IPO REPORTER IS STUNNED BY THE CREE SKYROCKET THE REASON PEOPLE ARE BIDDING IT UP IS THAT THEY HAVE A PRODUCT THEY'VE FOUND A MARKET FOR HE SAYS STILL ON THE FACE OF THINGS IT CERTAINLY LOOKS LIKE PEOPLE ARE REALLY GOING CRAZY ON A ONEHIT WONDER SO FAR MANY OF THESE INVESTORS ARE SMALLTIMERS WHO HOPEFULLY HAVEN'T BET THE HOUSE ON SUCH A SPECULATIVE INVESTMENT CREE'S OFFERING DOCUMENT SPELLS OUT PLENTY OF YELLOW LIGHTS FOR INVESTORS THE QUARTER ENDED SEPT 30 WAS CREE'S FIRST PROFITABLE ONE SINCE ITS INCEPTION IN 1987 SAYS THE PROSPECTUS THE DOCUMENT ALSO WARNS OF THE COMPLEX PERILS CONNECTED WITH MAKING THE BLUE SILICON CARBIDE DIODE PERIODIC OPERATING PROBLEMS AS THE COMPANY CALLS THEM AS WELL AS A POTENTIAL DECLINE IN SALES TO JAPAN CREE'S MAIN MARKET JAPANESE SALES ACCOUNTED FOR 58 OF PRODUCT REVENUE IN THE LAST SIX CALENDAR MONTHS OF 1992 BUT CREE'S DISTRIBUTORS HAVE TOLD IT THAT EXPECTED SALES IN THE FIRST SIX MONTHS OF 1993 MAY BE MATERIALLY LOWER THAN HAD PREVIOUSLY BEEN REPORTED TO THE COMPANY THE PROSPECTUS SAYS MR ROBERTSON WON'T TALK ABOUT FISCAL THIRDQUARTER EARNINGS WHICH ARE EXPECTED AS SOON AS NEXT WEEK THE CREE OFFERING HAS BEEN A SMASH FOR PAULSON WHICH IS HARDLY KNOWN AS AN IPO JUGGERNAUT ONE OF THE FEW TIMES PAULSON HAS MADE NEWS WAS IN JANUARY WHEN THE FIRM ITS PRESIDENT AND TWO OTHER EXECUTIVES WERE FINED 60000 BY THE NATIONAL ASSOCIATION OF SECURITIES DEALERS FOR VIOLATING SECURITIES LAWS BY CONTINUING TO MAKE A MARKET IN PAYLINE SYSTEMS STOCK WHILE PAULSON WAS ENGAGED IN A PRIVATE OFFERING OF THE STOCK PAULSON WHICH IS BASED IN PORTLAND ORE DIDN'T ADMIT OR DENY THE CIVIL CHARGES IN SETTLING THEM PAULSON ALSO WAS ACCUSED OF SUPERVISORY LAPSES WHICH THE FIRM BLAMED ON STRAINS CAUSED BY THE BROKERAGE FIRM'S RAPID GROWTH 9304230136 930423 WHAT'S NEWS WORLDWIDE OFFICIALS GAVE CONFLICTING DATA ABOUT TEXAS CULT MEMBERS' DEATHS THE GRISLY WORK OF REMOVING BODIES FROM THE DEBRIS AT WACO BEGAN AS AUTHORITIES LOOKED INTO THE POSSIBILITY THAT CULT LEADER KORESH'S FOLLOWERS RATHER THAN COMMITTING SUICIDE KILLED ONE ANOTHER BEFORE A FIRE CONSUMED THEIR COMPOUND BUT CONFLICTING INFORMATION EMERGED ON THE DEATHS OF THE 86 PEOPLE BELIEVED KILLED IN MONDAY'S FIRE AS A MEDICAL EXAMINER DISPUTED A JUSTICE DEPARTMENT STATEMENT THAT THREE OF THE BODIES FOUND HAD GUNSHOT WOUNDS EACH OF THE SIX SURVIVING CULT MEMBERS IN SEPARATE DISCUSSIONS WITH LAWYERS CONSISTENTLY GAVE ACCOUNTS AT ODDS WITH THE FBI'S VERSION THE SURVIVORS CONTEND THE FIRE WAS STARTED WHEN FBI TANKS SMASHED HOLES IN THE COMPOUND AND KNOCKED OVER LANTERNS MUSLIM AND CROAT FORCES BATTLED FOR TERRITORY IN CENTRAL BOSNIA AND UN PEACEKEEPERS SAID THEY WERE UNABLE TO STOP THE FIGHTING WHICH HAS COST SCORES OF CIVILIAN LIVES IN EASTERN BOSNIA 20000 REFUGEES WERE STILL TRAPPED IN SREBRENICA WHERE A SERBMUSLIM TRUCE APPEARED TO BE HOLDING RADICAL PALESTINIAN LEADERS WARNED OF DEEPER DIVISIONS AMONG ARABS IF PALESTINIAN DELEGATES GO THROUGH WITH PLANS TO ATTEND THE NEXT ROUND OF MIDEAST PEACE TALKS STARTING TUESDAY THE RADICALS ALSO PREDICTED MORE VIOLENCE IN THE OCCUPIED TERRITORIES SCIENTISTS REPORTED THAT THE EARTH'S PROTECTIVE OZONE LAYER WHICH HAS BEEN DIMINISHING AT A SLOW RATE IN THE LAST 13 YEARS SHOWED A SUDDEN AND STEEP REDUCTION LAST YEAR ITALY'S PRIME MINISTER ANNOUNCED HIS RESIGNATION THREE DAYS AFTER VOTERS PASSED A REFERENDUM TO REFORM THE POLITICAL SYSTEM BY INTRODUCING A MAJORITYSTYLE ELECTORAL PROCESS FOR THE SENATE AMATO'S DECISION BROUGHT AN END TO POSTWAR ITALY'S 51ST GOVERNMENT A SOUTH AFRICAN RIGHTWING LEADER DIED IN A CAPE TOWN HOSPITAL ANDRIES TREURNICHT 72 WHO RECENTLY UNDERWENT HEART BYPASS SURGERY HAD HEADED THE PROAPARTHEID CONSERVATIVE PARTY TREURNICHT HAD BEEN DUBBED DR NO FOR HIS LONGSTANDING OPPOSITION TO POLITICAL REFORM ALABAMA GOV HUNT WAS REMOVED FROM OFFICE AFTER BEING CONVICTED OF USING 200000 FROM AN INAUGURAL FUND FOR PERSONAL GAIN HUNT A REPUBLICAN WAS SUCCEEDED BY LT GOV FOLSOM HUNT FACES A JAIL TERM OF AS MUCH AS 10 YEARS AND A POSSIBLE 10000 FINE NORTH KOREA HAS DECIDED TO RETURN TO THE NUCLEAR NONPROLIFERATION TREATY THE SOUTH KOREAN NEWS AGENCY YONHAP SAID QUOTING AN UNIDENTIFIED PYONGYANG DIPLOMAT THE NORTH KOREANS SAID ON MARCH 12 THEY WOULD WITHDRAW FROM THE PACT RATHER THAN ALLOW INSPECTION OF TWO NUCLEAR SITES RUSSIA'S YELTSIN FLEW TO A REGION EAST OF MOSCOW TO SEEK SUPPORT AHEAD OF SUNDAY'S REFERENDUM ON HIS LEADERSHIP MEANWHILE OPPONENTS ACCUSED THE PRESIDENT OF PLOTTING TO IMPOSE ONEMAN RULE ON ELECTION NIGHT FACULTY MEMBERS ENDORSED A COMPROMISE PROPOSAL AT THE UNIVERSITY OF VIRGINIA THAT BANS SEX BETWEEN THE FACULTY AND THE STUDENTS THEY TEACH THE BAN WAS ADOPTED INSTEAD OF A STRICT PROHIBITION AGAINST ALL SEX BETWEEN STUDENTS AND FACULTY CLINTON ADVISER CARVILLE WILL SPEAK THIS WEEKEND TO A MEETING OF ELECTED GAY AND LESBIAN POLITICIANS BUT THE PRESIDENT HIMSELF WILL BE OUT OF WASHINGTON DURING A MASSIVE GAYRIGHTS MARCH A MILITARY COURT IN EGYPT CONVICTED 32 MUSLIM MILITANTS OF TRYING TO TOPPLE THE GOVERNMENT BY ATTACKING TOURISTS SEVEN DEFENDANTS WERE SENTENCED TO HANG AND THE REST RECEIVED PRISON TERMS CLINTON PAID TRIBUTE TO THE NEW US HOLOCAUST MEMORIAL MUSEUM IN WASHINGTON AND DESCRIBED IT AS A PLACE OF DEEP SADNESS AND A SANCTUARY OF BRIGHT HOPE FOR GENERATIONS TO COME A STUDY OF ORGAN TRANSPLANTS FOUND THAT INEQUITIES IN THE ALLOCATION SYSTEM CAN DENY ORGANS TO SICKER PATIENTS OR PATIENTS WHO HAVE WAITED LONGER AND MAY VIOLATE US LAW DIED THEODORE COOPER 64 CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF UPJOHN CO IN RICHMOND VA OF COMPLICATIONS OF CANCER 9304230135 930423 OMAN AND VENTURE OF TEXACO CHEVRON PLAN ASIA PROJECTS BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL OMAN AND CALTEX PETROLEUM CORP AGREED TO EXPAND OIL REFINING AND MARKETING TIES IN ASIA INCLUDING THE BUILDING OF A NEW REFINERY IN THAILAND FOR THE SULTANATE OF OMAN A PERSIAN GULF OIL PRODUCER THAT IS ALSO A MAJOR PARTICIPANT IN THE OIL DEVELOPMENT OF THE FORMER SOVIET REPUBLIC OF KAZAKHSTAN THIS MARKS A SIGNIFICANT BROADENING OF ITS FOREIGN OIL ACTIVITIES UNDER THE GUIDANCE OF JOHN DEUSS THE BERMUDABASED DUTCH OIL TRADER CALTEX WHICH OPERATES IN 58 COUNTRIES AND IS JOINTLY OWNED BY CHEVRON CORP AND TEXACO INC ALREADY HAS WHAT IT CALLS A WORKING RELATIONSHIP WITH REFINERIES IN OMAN THIS AGREEMENT WOULD EXTEND THAT RELATIONSHIP TO THAILAND AND ALSO TO INDIA AND POSSIBLY SOUTH KOREA THE SIGNING OF PRELIMINARY MEMORANDUMS OF UNDERSTANDING TO JOINTLY PURSUE PETROLEUM REFINING AND MARKETING OPPORTUNITIES IN SEVERAL ASIAN MARKETS WAS ANNOUNCED IN BERMUDA BY SAID BIN AHMED ALSHANFARI OMAN'S OIL MINISTER THIS NEW STRATEGIC ALLIANCE REPRESENTS AN IMPORTANT EXPANSION OF THE ALREADY SIGNIFICANT TIES BETWEEN THE SULTANATE OF OMAN AND CALTEX IN THE PETROLEUM REFINERY INDUSTRY MR SHANFARI SAID WE BELIEVE THIS NEW RELATIONSHIP WILL SIGNIFICANTLY ENHANCE OUR CORPORATE OPPORTUNITIES P J WARD CALTEX CHAIRMAN SAID THE OFFICIALS SAID THE UNDERSTANDING WILL EXTEND TO ACTIVITIES AND PROJECTS IN AREAS SUCH AS KOREA AND OMAN IN WHICH THE PARTIES HAVE A MUTUAL INTEREST IN THE CALTEX AREA OF OPERATIONS BUT THE FIRST STEP IN THE ALLIANCE WILL BE THE FORMING OF A JOINTLY OWNED COMPANY TO PARTICIPATE WITH THE PETROLEUM AUTHORITY OF THAILAND IN BUILDING A 19 BILLION REFINERY IN MAP TA PHUT THAILAND IT WILL HAVE A CAPACITY OF 130000 BARRELS A DAY AND OMAN WOULD SUPPLY AS MUCH AS 80000 BARRELS A DAY OF CRUDE OIL FOR PROCESSING ACCORDING TO THE BERMUDA ANNOUNCEMENT CALTEX AND OMAN WOULD HAVE WHAT THEY CALLED AN INDIRECT 64 EQUITY INTEREST IN THE THAILAND REFINERY THROUGH CXO A BERMUDA COMPANY CXO WOULD BE OWNED 60 BY CALTEX AND 40 BY OMAN OIL CO WHICH IS HEADED BY MR DEUSS CXO IS THE THIRD RECENTLY CREATED BERMUDABASED COMPANY IN WHICH OMAN'S GOVERNMENT HOLDS AN INTEREST IN ADDITION OMAN AND CALTEX SIGNED A MEMORANDUM OF UNDERSTANDING FOR A FEASIBILITY STUDY ON A NEW REFINERY IN INDIA INITIAL CAPACITY WOULD BE 120000 BARRELS A DAY 9304230134 930423 TRACKING TRAVEL BY JONATHAN DAHL THE RECENT RASH OF MUGGINGS AND MURDERS OF TOURISTS IN FLORIDA HAS PERSUADED SOME BUT NOT ALL CAR RENTAL COMPANIES TO MAKE THEIR CAR LESS CONSPICUOUS NATIONWIDE MANY RENTAL COMPANIES HAVE LONG PUT STICKERS ON THEIR CARS' BUMPERS OR WINDSHIELDS AS A FORM OF CHEAP ADVERTISING MOREOVER ABOUT 10 STATES REQUIRE RENTAL COMPANIES TO USE LICENSE PLATES WITH TELLTALE CODES OR LETTERS THESE KINDS OF IDENTIFYING SIGNS HELPED CRIMINALS TARGET SOME OF THE TOURISTS VICTIMIZED IN FLORIDA AS A RESULT CAR RENTAL COMPANIES SAY THEY ARE REMOVING THEIR STICKERS FROM CARS IN FLORIDA AND THE STATE'S GOVERNOR HAS ORDERED A HALT TO THE TELLTALE LICENSEPLATE LETTERING OUTSIDE FLORIDA HOWEVER RENTAL COMPANIES' STICKER POLICIES VARY WHICH ANGERS SOME CONSUMER GROUPS CRIMINALS HAVE NO BOUNDARIES SO THIS COULD HAPPEN ANYWHERE SAYS MICHAEL ASHINGTONPICKETT WHO PUBLISHES A TRAVEL NEWSLETTER IN ORLANDO FLA BEARING HIS NAME THESE COMPANIES HAVE GOT TO PUT SAFETY AHEAD OF SELFPROMOTION HERTZ A PARK RIDGE UNIT AND AVIS SAY THEY REMOVED BUMPER STICKERS A YEAR AGO AND ARE NOW REMOVING ALL SMALL IDENTIFICATION LABELS ON WINDSHIELDS BUDGET RENT A CAR SAYS IT DIDN'T HAVE LABELS ON CARS AT COMPANYOWNED LOCATIONS BUT BUDGET A UNIT OF BEECH HOLDINGS LISLE ILL IS LESS CLEAR ABOUT ITS FRANCHISEES WHICH MAKE UP 60 OF ITS LOCATIONS WE'RE TAKING A SURVEY ON HOW MANY IF ANY OF OUR FRANCHISEES USE STICKERS AND WE'LL DECIDE FROM THERE SAYS A SPOKESMAN DOLLAR RENT A CAR SYSTEMS A CHRYSLER UNIT SAYS IT IS NOW SUGGESTING BUT NOT REQUIRING THAT FRANCHISEES REMOVE ALL BUMPER STICKERS THRIFTY RENT A CAR SYSTEM ALSO OWNED BY CHRYSLER SAYS IT PROBABLY WILL MAKE A SIMILAR SUGGESTION TO ITS FRANCHISEES THE STICKERS DO HAPPEN TO BE A POPULAR ITEM WITH OUR LICENSEES SAYS A THRIFTY SPOKESWOMAN THEY GIVE THEM VISIBILITY IN THE COMMUNITY THERE HAS BEEN LITTLE MOVEMENT AWAY FROM TELLTALE LICENSE PLATES OUTSIDE FLORIDA HERTZ SAYS IT IS LOBBYING FOR CHANGES IN SEVERAL OTHER STATES BUT SO FAR HASN'T GOTTEN RESULTS THE LETTERING PRACTICE IS DONE GENERALLY FOR MOTORVEHICLE DEPARTMENTS' ADMINISTRATIVE REASONS BUT A HERTZ SPOKESMAN SAYS I CAN TELL YOU THE FIRST PEOPLE TO KNOW THOSE CODES ARE THE CRIMINALS SOUTHWEST AIRLINES HAS BECOME A MAJOR CARRIER OFFERING LOW FARES AND FLIES TO 34 CITIES IN THE SOUTHWEST MIDWEST AND CALIFORNIA BUT SOME TRAVEL AGENTS ACT AS IF IT DOESN'T EXIST ONLY ABOUT HALF OF SOUTHWEST'S TICKETS ARE BOOKED THROUGH TRAVEL AGENTS COMPARED WITH 80 OF TICKETS FOR ALL AIRLINES THERE IS A SMALL BUT EVERGROWING MINORITY OF AGENTS THAT WILL NOT OFFER US SAYS DAVID RIDLEY MARKETING DIRECTOR FOR THE DALLASBASED CARRIER TO US THAT SEEMS TO BE IN DIRECT CONTRADICTION TO GOOD CUSTOMER SERVICE THE PROBLEM ISN'T MONEY IT'S TIME SOUTHWEST PAYS AGENTS THE SAME COMMISSIONS AS OTHER CARRIERS BUT AGENTS MUST CALL SOUTHWEST TO BOOK TICKETS OVER THE PHONE INSTEAD OF BOOKING THEM EASILY AND QUICKLY ON AIRLINE COMPUTER RESERVATION SYSTEMS FOR SOUTHWEST THIS SAVES 2 TO 3 A TICKET IN FEES TO THE AIRLINE RESERVATION SYSTEMS HELPING IT KEEP FARES DOWN TRAVEL AGENT GROUPS CONCEDE THAT SOUTHWEST MAY NOT BE MOST AGENTS' MOST POPULAR AIRLINE BUT THEY SAY NO AGENT WOULD OPENLY REFUSE TO BOOK ON SOUTHWEST OTHERWISE THEY WOULD RISK LOSING THEIR CLIENTS' BUSINESS SAYS PAUL RUDEN SENIOR VICE PRESIDENT OF LEGAL AND INDUSTRY AFFAIRS FOR THE AMERICAN SOCIETY OF TRAVEL AGENTS IN WASHINGTON SOME AGENCIES HAVE INSTALLED SEPARATE COMPUTER EQUIPMENT THAT ALLOWS THEM TO BOOK TICKETS FASTER WITH SOUTHWEST BUT ONLY A SMALL PERCENTAGE OF THE NATION'S 35000 AGENCIES HAVE THE GEAR EVEN THAT SYSTEM HAS A DRAWBACK THAT MIGHT DETER SOME AGENTS IT CAN TAKE AS MUCH AS A HALFHOUR TO BOOK FLIGHTS THROUGH IT AND GET THE PRINTED TICKETS BACK AMTRAK IS ADOPTING A MAJOR SMOKING BAN FOR THE FIRST TIME EFFECTIVE MAY 2 SMOKING WILL BE PROHIBITED ON ALL TRIPS OF LESS THAN 4 1/2 HOURS THAT INCLUDES AMTRAK'S HEAVILY USED METROLINER SERVICE BETWEEN NEW YORK AND WASHINGTON CURRENTLY AMTRAK USUALLY SETS ASIDE ONE COACH CAR ON EACH TRAIN FOR SMOKING ON LONGERHAUL TRAINS WHICH NOW HAVE BOTH A SMOKING COACH AND A LOUNGE CAR WHERE SMOKING IS PERMITTED AMTRAK WILL PROHIBIT SMOKING IN THE LOUNGE CAR THE POLICY IS A BIG SWITCH FOR AMTRAK WHICH HAS RESISTED FOLLOWING AIRLINE SMOKING BANS OF RECENT YEARS THE RAILROAD CUT SMOKING LAST YEAR ON ONLY A HANDFUL OF LOWVOLUME ROUTES AND HAS SAID IT DIDN'T MOVE MORE BROADLY BECAUSE IT WAS AFRAID OF LOSING CUSTOMERS BUT AN AMTRAK SPOKESMAN SAYS IT RECEIVED TOO MANY COMPLAINTS FROM NONSMOKERS TO CONTINUE WITHOUT A BROAD BAN HE ADDS THAT THE CHANGE SHOULD IMPROVE EFFICIENCY BECAUSE AMTRAK WILL BE ABLE TO USE FEWER CARS ON SOME ROUTES WHEN NO SMOKING CAR IS NEEDED ENFORCEMENT HOWEVER MAY BECOME AN ISSUE AIRLINES FOUND SOME SMOKERS DEALT WITH THE BANS BY SMOKING IN LAVATORIES POSING A SAFETY HAZARD THEY NOW USE SMOKE DETECTORS AND HAVE HAD SOME VIOLATORS ARRESTED BUT THE AMTRAK SPOKESMAN SAYS THE RAILROAD WON'T INSTALL SMOKE DETECTORS AND CONDUCTORS WHO CATCH PEOPLE SMOKING IN BATHROOMS WILL ASK ONLY THAT THEY STOP BUSINESS FARES FELL AS MUCH AS 40 WHEN AMERICAN AIRLINES INTRODUCED ITS NEW PRICING PLAN A YEAR AGO BUT PRICES HAVE GRADUALLY RETURNED TO THEIR OLD LEVEL AN AMERICAN EXPRESS MONTHLY REPORT FINDS TYPICAL BUSINESS FARES HAVE RISEN 41 FROM A YEAR AGO GAMBLING CONTINUES TO BOOM AMONG SENIORS ABOUT ONETHIRD OF SENIORCITIZEN CUSTOMERS AT HILTON HOTELS PROPERTIES IN THE US STAY AT THE CHAIN'S CASINO PROPERTIES IN NEVADA FEWER THAN 10 STAY IN HAWAII 9304230133 930423 AUTOS NEON MAY BE A BRIGHT LIGHT FOR CHRYSLER BY PAUL INGRASSIA AND DOUGLAS LAVIN STAFF REPORTERS OF THE WALL STREET JOURNAL AUBURN HILLS MICH FOR THE BIG THREE BUILDING A PROFITABLE SMALL CAR WOULD BE LIKE FINDING THE HOLY GRAIL GENERAL MOTORS CORP'S SATURN CAR FOR ALL ITS ACCEPTANCE BY CONSUMERS HASN'T COME CLOSE TO REPAYING THE COMPANY'S INVESTMENT IN THE PROJECT FORD MOTOR CO ENLISTED JAPAN'S MAZDA MOTOR CORP TO DO MOST OF THE ENGINEERING ON THE SUBCOMPACT ESCORT BUT FORD STILL LOSES MONEY ON IT BUT NOW CHRYSLER CORP MAY BE ON THE VERGE OF SUCCEEDING WHERE ITS BIGGER RIVALS HAVE FAILED EARLY NEXT YEAR CHRYSLER WILL LAUNCH THE DODGE AND PLYMOUTH NEON A SUBCOMPACT CAR WITH DUAL FRONT AIR BAGS A PEPPY MULTIVALVE ENGINE AND A PRICE TAG COMPARABLE WITH THE SATURN AND ESCORT WHICH ARE IN THE 11000 TO 12000 RANGE BUT THE NEON'S MOST IMPRESSIVE FEATURE ASSUMING ALL GOES AS PLANNED WILL BE ACTUALLY MAKING MONEY FOR CHRYSLERINSTEAD OF SERVING AS A LOSS LEADER TO ATTRACT ENTRYLEVEL BUYERS AND SATISFY FEDERAL FUELECONOMY REGULATIONS I THINK CHRYSLER HAS A SHOT AT MAKING MONEY ON THE NEON SAYS CHRISTOPHER W CEDERGREN OF AUTOPACIFIC GROUP A CONSULTING FIRM THE NEON ISN'T A DEFENSIVE MOVE IN THE SMALLCAR MARKET CHRYSLER WILL BE PLAYING OFFENSE AND IT WILL DO SO OR AT LEAST TRY BY THROWING AWAY THE SMALLCAR PLAY BOOK THAT DETROIT HAS USED FOR YEARS THE TYPICAL DETROIT SMALL CAR HAS BEEN A NOFRILLS ECONOBOX PEOPLE BOUGHT BECAUSE THEY COULDN'T AFFORD ANYTHING ELSE AUTO MAKERS CONTROLLED PRODUCTION COSTS BY KEEPING CREATURE COMFORTS TO A MINIMUM THE NEON ISN'T WITHOUT SUCH COMPROMISES INITIALLY FOR EXAMPLE THE CAR WILL HAVE ONLY A THREESPEED AUTOMATIC TRANSMISSION INSTEAD OF THE MOREEFFICIENT FOUR SPEEDS STANDARD ON COMPETING JAPANESE MODELS BUT CHRYSLER IS LOADING THE CAR WITH FEATURES WE DECIDED THAT SAFETY AND BEING FUN TO DRIVE' WERE THE TWO ATTRIBUTES NEEDED TO SET THE NEON APART FROM COMPETITORS DECLARES ROBERT P MARCELL 53 THE 29YEAR CHRYSLER VETERAN WHO HEADS THE TEAM DEVELOPING THE CAR THUS BESIDES HAVING TWO FRONT AIR BAGS THE NEON WILL MEET THE STRINGENT NEW FEDERAL STANDARD FOR SIDEIMPACT COLLISIONS THAT WON'T ACTUALLY TAKE EFFECT UNTIL 1997 AS FOR FUN CHRYSLER IS TRYING TO GIVE THE NEON WHAT AUTO MAKERS CALL PERSONALITY THE EASYTOREMEMBER NAME IS INTENDED TO GIVE THE CAR A BRIGHT LIVELY YOUNG FEEL CHRYSLER SAYS THE STYLING ISN'T AS CUTE OR FUNKY AS SOME CHRYSLER DESIGNERS WANTED BUT THE NEON WILL HAVE ROUNDED LINES A TAUT SUSPENSION AND A RAKISHLY ANGLED WINDSHIELD IT WILL ALSO HAVE CUP HOLDERS A COIN HOLDER AND A MAP POCKET AND THE ENGINE'S 130 HORSEPOWER WILL KICK THE CAR FROM ZERO TO 60 MILES AN HOUR IN ABOUT EIGHT SECONDS IN MANUALTRANSMISSION MODELS SATURN USES A SIMILAR VALUE FOR MONEY STRATEGY WITH MUCH SUCCESS ON THE SALES FLOOR BUT WITH NOTHING TO SHOW ON THE BOTTOM LINE THE REASON GM SPENT 35 BILLION TO BRING SATURN TO MARKET CHRYSLER IN CONTRAST IS SPENDING ONLY ABOUT 13 BILLION TO DEVELOP THE NEON THE COST DIFFERENCE STEMS FROM CHRYSLER'S LEAN JAPANESESTYLE PRODUCTDEVELOPMENT PROCESS THAT'S THE OPPOSITE OF THE CLEAN SHEET OF PAPER APPROACH USED BY SATURN INSTEAD OF BUILDING NEW FACTORIES TO ASSEMBLE THE CAR AND MANUFACTURE ENGINES AS SATURN DID CHRYSLER WILL BUILD THE NEON AND ITS ENGINE IN EXISTING FACILITIES WITH MANY OF THE SAME MACHINES USED TO BUILD PREVIOUS MODELS TO MINIMIZE THE CAPITAL INVESTMENT CHRYSLER EXECUTIVES WALKED THROUGH THE PLANTS WITH PEELOFF STICKEM POLKA DOTS TO LABEL ANY MACHINES THAT COULD BE REUSED AND THE NEON IS ENGINEERED TO BE SIMPLE TO BUILD IT WILL REQUIRE JUST MORE THAN 20 HOURS OF LABOR PER CAR WHILE THE SATURN TAKES MORE THAN 30 WHAT'S MORE CHRYSLER WON'T SPEND TENS OF MILLIONS OF DOLLARS TO DEVELOP DIFFERENT FRONT GRILLES AND DASHBOARDS FOR THE DODGE AND PLYMOUTH VERSIONS OF THE NEON THAT'S WHAT FORD DID FOR THE MERCURY TRACER VERSION OF THE ESCORT WHICH IS PARTLY WHY THOSE CARS COST 2 BILLION TO DEVELOP CHRYSLER WILL ASSUME THAT CONSUMERS WILL REALLY KNOW THAT THE DODGES AND PLYMOUTHS LIKE THE ESCORT AND TRACER ARE REALLY ONE CAR BECAUSE THE DODGE AND PLYMOUTH CARS WILL BE CALLED THE NEON AND WILL BE IDENTICAL CHRYSLER WILL NEED JUST ONE ADVERTISING CAMPAIGN FOR THE CAR THEY ARE TAKING OUT A LOT OF UNNEEDED INVESTMENT DECLARES RON HARBOUR OF HARBOUR & ASSOCIATES A TROY MICH CONSULTING CONCERN IT'S A ONELOOK CAR DO YOU KNOW HOW MUCH MONEY THAT CAN SAVE IF SUCCESSFUL THE NEON WOULD ADD TO A STRING OF CHRYSLER HITS THAT INCLUDES THE JEEP GRAND CHEROKEE AND LH SEDANS WHICH WERE INTRODUCED LAST YEAR AND A STYLISH NEW FULLSIZE PICKUP TRUCK SLATED TO APPEAR THIS SUMMER A PROFITABLE SMALL CAR WOULD ALSO ADD CONSIDERABLY TO DETROIT'S RECENT RESURGENCE AGAINST THE JAPANESE THE CAR ALSO COULD SYMBOLIZE NEW STRENGTH IN US COMPETITIVENESS CHRYSLER HOPES TO EXPORT MORE THAN 10 OF THE PRODUCTION FROM ITS FACTORY IN BELVIDERE ILL WHICH WILL BE ABLE TO MAKE 250000 NEONS A YEAR 300000 IF WORKING FULL OVERTIME INITIALLY ONLY FOURDOOR SEDANS WILL BE BUILT THE TWODOOR COUPE WILL BE LAUNCHED IN THE FALL OF 1994 CHRYSLER WILL ALSO BUILD THE NEON IN MEXICO BUT MOSTLY FOR THE MEXICAN MARKET BUT THE NEON'S SUCCESS IS FAR FROM GUARANTEED ANY NUMBER OF PROBLEMS FROM UNEXPECTED QUALITY GLITCHES TO COUNTERMOVES BY COMPETITORS COULD MAKE THE CAR A DISAPPOINTMENT AND EVEN CHRYSLER OFFICIALS CONCEDE THAT PROFITS ON THE CAR WON'T BE BIG YOU'RE NEVER GOING TO COIN MONEY AT THE LOW END OF THE PRODUCT LINE SAYS JEROME B YORK CHRYSLER EXECUTIVE VICE PRESIDENT FINANCE IDENTICAL CARS CHRYSLER'S BIGGEST CHALLENGE WITH THE NEON MAY BE WHERE SATURN HAS SUCCEEDED MOST MARKETING CHRYSLER OLDLINE DEALERS OFTEN SEEM STODGY AND OUT OF DATE UNABLE TO DEAL WITH THE SORT OF YOUNG TRENDY BUYERS WHO WOULD APPRECIATE A SOPHISTICATED SMALL CAR THAT'S WHY THE MITSUBISHI ECLIPSE CONSISTENTLY OUTRANKS THE PLYMOUTH LASER ON CUSTOMERSATISFACTION SURVEYS EVEN THOUGH THE ECLIPSE AND LASER ARE IDENTICAL CARS BUILT IN THE SAME MITSUBISHI FACTORY IN ILLINOIS SATURN HAS DONE A BRILLIANT JOB OF CREATING THIS IDENTITY AS A DOMESTIC CAR FROM A DIFFERENT PLACE SAYS MARYANN KELLER AUTO ANALYST AT FURMAN SELZ INC THAT'S GOING TO BE VERY HARD FOR CHRYSLER TO DO CHRYSLER DEALERS ARE USED TO A LESSAFFLUENT OLDER CUSTOMER AS LATE AS 1989 CHRYSLER WAS UNSURE WHETHER IT COULD PRODUCE A COMPETITIVE SMALL CAR CONVENTIONAL WISDOM IN DETROIT HELD THAT US MANUFACTURERS SHOULD FORM AN ALLIANCE WITH A FOREIGN PRODUCER BUT AROUND THEN CHRYSLER DECIDED TO IMPORT JAPANESE MANAGEMENT TECHNIQUES IT CUT COSTS BY RELYING ON ITS SUPPLIERS TO DESIGN AND IMPROVE PARTS OF THE CAR AND IT DECIDED TO BREAK DOWN DIVISIONS BETWEEN DIFFERENT DEPARTMENTS SUCH AS ENGINEERING AND MANUFACTURING TO PUT PRODUCT DEVELOPMENT IN PLATFORM TEAMS LAST YEAR WHEN CHRYSLER INTRODUCED THE CHRYSLER CONCORDE AND SIMILAR SEDANS CODENAMED LH IT PROVED THAT THE NEW SYSTEM WORKS THE LH WAS DEVELOPED WITH 840 PEOPLE OVER 38 MONTHS THE NEON USED 740 PEOPLE AND 31 MONTHS CHRYSLER SAYS AND EASE OF MANUFACTURE HAS BEEN DESIGNED INTO THE PROCESS OVER THE PAST FEW MONTHS CHRYSLER HAS BROUGHT ABOUT 750 HOURLY EMPLOYEES TO ITS SUBURBAN DETROIT TECHNICAL CENTER TO HELP BUILD NEONS ON A PROTOTYPE ASSEMBLY LINE IT HAS ALSO HAD MANUFACTURING ENGINEERS WORK SIDE BY SIDE WITH DESIGNERS FROM DAY ONE AS A RESULT THE NEON'S DIES WERE DESIGNED TO STAMP OUT TWO AND SOMETIMES THREE PARTS FROM THE SAME PIECE OF SHEET METAL REDUCING HANDLING COST STEEL WASTE AND DIEMAKING COSTS THE CAR USES ONLY 60 THE NUMBER OF DIES USED TO MAKE THE SUNDANCE/SHADOW MODELS THAT IT REPLACES AND IT USES ONLY HALF THE VARIETY OF SCREWS AND OTHER FASTENERS AS ITS PREDECESSOR WHAT'S MORE PARTS CONTRACTS WEREN'T PUT OUT TO BID INSTEAD THEY WERE AWARDED TO MANUFACTURERS WHO WOULD MEET CHRYSLER'S TARGET KEEPING THE NEON'S PRODUCTION COST AT OR BELOW THAT OF THE 1990 OMNI HORIZON A MUCH SIMPLER CAR WITH NO ADJUSTMENT FOR INFLATION SUPPLIERS WHO FIT THE BILL WERE AWARDED LIFETIME CONTRACTS AS IF TO PROVE THAT THE NEON REPRESENTS A TURNING POINT CHRYSLER WILL FORMALLY UNVEIL IT THIS FALL IN GERMANY AT THE FRANKFURT AUTO SHOW THEN IT WILL LET SOME OF THE WORLD'S TOP AUTO CRITICS DRIVE IT AND COMPETITIVE VEHICLES THROUGH THE BLACK FOREST THE MARKETING MESSAGE CHRYSLER HAS PRODUCED A WORLDCLASS SMALL CAR SAYS MR MARCELL WE WERE TIRED OF BEING TOLD WE CAN'T COMPETE 9304230132 930423 FOREIGN EXCHANGE DOLLAR ENDS LOWER AGAINST THE MARK DESPITE GERMANY'S CUTS OF 2 KEY RATES BY RICHARD SCHUMACHER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AFTER VOLATILE TRADING THE DOLLAR ENDED LOWER AGAINST THE MARK DESPITE UNEXPECTED CUTS IN TWO KEY GERMAN INTEREST RATES AND LOWER AGAINST THE YEN ON NEW SIGNS JAPAN'S TRADING PARTNERS WANT THE NATION'S CURRENCY TO CONTINUE TO STRENGTHEN THE DOLLAR FINISHED MOSTLY DOWN AGAINST OTHER MAJOR CURRENCIES IN TOKYO FRIDAY AT MIDDAY THE DOLLAR WAS TRADING AT 11040 YEN AND 15945 MARKS PLAYERS SAID THE DAY'S GREATEST SWINGS OCCURRED IN MARK TRADING WHERE VALUES WHIPPED ABOUT ON CONFUSION OVER THE ACTIONS OF THE BUNDESBANK THE GERMAN CENTRAL BANK CUT ITS OFFICIAL DISCOUNT RATE TO 725 FROM 750 AND ITS LOMBARD RATE TO 850 FROM 90 CENTRAL BANKS IN BELGIUM DENMARK ITALY AND AUSTRIA CUT KEY RATES AFTER THE BUNDESBANK ACTED THE DISCOUNT RATE IS THE LOWEST RATE AT WHICH THE BUNDESBANK WILL MAKE LOANS TO COMMERCIAL BANKS THE LOMBARD RATE IS THE ONE AT WHICH BANKS CAN BORROW EMERGENCY FUNDS FROM THE CENTRAL BANK IT ACTS AS THE EFFECTIVE CEILING ON MONEYMARKET RATES A CHANGE IN THE BUNDESBANK'S PROCEDURE FOR DISCLOSING INTEREST RATE INFORMATION RESULTED IN SEVERAL NEWS SERVICES REPORTING THAT RATES HADN'T BEEN TRIMMED IN THE CONFUSION THE GERMAN CURRENCY STRENGTHENED BRIEFLY BEFORE NEWS OF THE CUTS WAS MADE CLEAR AND THE MARK THEN FELL AGAINST MOST CURRENCIES WHEN THE INITIAL INCORRECT REPORTS APPEARED THE DOLLAR WENT STRAIGHT DOWN SAID HUBERT PEDROLI MANAGER OF FOREIGN EXCHANGE AT CREDIT SUISSE BUT THEN WHEN CORRECT REPORTS APPEARED SHORTLY THEREAFTER THE DOLLAR SHOT BACK UP MORE THAN 15 PFENNIGS IN A MATTER OF MINUTES EVERYONE WAS CAUGHT SHORT MR PEDROLI SAID ALTHOUGH THE GERMAN CUTS GENERALLY WEREN'T EXPECTED THEY HAD LESS OVERALL IMPACT ON THE DOLLAR THAN MANY TRADERS INITIALLY THOUGHT THEY MIGHT PARTICIPANTS SAID THE DOLLAR'S SPIKE HIGHER CAME IN REACTION TO THE FAULTY INITIAL REPORTS AND ALSO BECAUSE THEY CONFIRMED A DOWNWARD TREND IN GERMAN RATES LOWER INTEREST RATES MAKE A CURRENCY LESS ATTRACTIVE TO INVESTORS THEY NOTED BUT AS THE DAY PROGRESSED THE DOLLAR DRIFTED DOWN FROM ITS INTRADAY PEAKS AGAINST THE MARK AVINASH PERSAUD A SENIOR CURRENCY ECONOMIST AT UNION BANK OF SWITZERLAND SAID THAT THE BUNDESBANK'S INTEREST RATE REDUCTIONS WERE SIGNIFICANT BUT MORE NOTEWORTHY FOR THEIR TIMING RATHER THAN THEIR MAGNITUDE THE RELAXATION OF BUNDESBANK POLICY IN THE CONTEXT OF FASTER MONEY SUPPLY GROWTH AND THE DETERIORATION OF GERMANY'S FISCAL POSITION IMPLIES NEW AND INCREASED CONCERN WITH THE WEAKNESS OF THE WESTERN PORTION OF THE GERMAN ECONOMY HE SAID ON WEDNESDAY THE BUNDESBANK REPORTED THAT ITS BROADBASED M3 MEASURE OF GERMANY'S MONEY SUPPLY GREW AT A SURPRISINGLY FAST SEASONALLY ADJUSTED ANNUAL RATE OF 32 IN MARCH ANALYSTS SAID THAT MEANT THAT GROWTH FOR THE PRECEDING SIX MONTHS EQUALLED 56 MANY ECONOMISTS HAD BEEN EXPECTING THE MARCH FIGURE TO REFLECT A RISE OF ONLY 11 IN ADDITION GERMAN FINANCE MINISTER THEO WAIGEL SAID WEDNESDAY THAT THE GOVERNMENT PROJECTED GERMANY'S 1993 FEDERAL BUDGET DEFICIT AT MORE THAN 65 BILLION MARKS 4061 BILLION THAT'S UP 51 FROM DECEMBER'S 43BILLIONMARK FORECAST THE GERMAN INTEREST RATE CUTS POINT TO A SIGNIFICANT INCREASE IN CONCERN BY THE MAJORITY OF THE BUNDESBANK CENTRAL COUNCIL ABOUT THE STATE OF THE ECONOMY AND REDUCED EMPHASIS ON CURRENT INFLATION SAID KERMIT L SCHOENHOLTZ AN INTERNATIONAL ECONOMIST AT SALOMON BROTHERS INTERNATIONAL LTD HE PREDICTED THAT THE GERMAN RATE REDUCTIONS WOULD AUGUR GREATER STABILITY WITHIN EUROPE'S EXCHANGE RATE MECHANISM AND INCREASED CONVERGENCE OF EUROPEAN GOVERNMENT BOND YIELDS TOWARD THOSE OF GERMANY HOWEVER HE WARNED THAT A SIZABLE RALLY IN 10YEAR GERMAN GOVERNMENT BONDS WOULD BE LIMITED BY THE GERMAN ECONOMY'S STRUCTURAL PROBLEMS MEANWHILE THE YEN CONTINUED TO SHOOT FORWARD FRESH INDICATIONS APPEARED THAT JAPAN'S MAJOR TRADING PARTNERS CONTINUE TO SEEK A FIRMER YEN AS A TOOL TO REDUCE JAPAN'S MOUNTING TRADE SURPLUSES MICHAEL R SESIT IN LONDON CONTRIBUTED TO THIS ARTICLE 9304230131 930423 WHAT'S NEWS BUSINESS AND FINANCE GERMANY LOWERED INTEREST RATES AMID CONCERN OVER ITS DEEPENING RECESSION AND FOREIGN PRESSURE FOR LOWER RATES THE LOMBARD RATE WAS CUT TO 85 FROM 9 THE DISCOUNT RATE FELL TO 725 FROM 75 OTHER EUROPEAN COUNTRIES FOLLOWED SUIT EUROPEAN STOCKS RALLIED ON THE MOVES AMERICAN EXPRESS POSTED STRONGER THAN EXPECTED FIRSTQUARTER EARNINGS AIDED BY STRONG GAINS IN ITS CHARGE CARD BUSINESS AND IMPROVED RESULTS AT ITS SHEARSON LEHMAN BROTHERS UNIT ALLSTATE INSURANCE PLANS TO LET POLICIES LAPSE FOR 300000 HOMEOWNERS AND OTHER CUSTOMERS IN FLORIDA AS PART OF AN EFFORT BY THE SEARS UNIT TO REDUCE ITS EXPOSURE TO LOSSES FROM HURRICANES A STATE OFFICIAL SAID ALLSTATE'S MOVE WILL HELP CREATE AN INSURANCE SHORTAGE HOME SHOPPING NETWORK'S CHAIRMAN ROY SPEER BOUGHT AN OCEANFRONT MANSION IN THE BAHAMAS IN 1991 AT WHAT MAY HAVE BEEN A BARGAIN PRICE FROM A SUPPLIER WHOSE COMPANY THEN GOT MILLIONS OF DOLLARS IN ORDERS FROM THE CABLE TV RETAILER RECORDS SHOW THE HOUSE SENT TO CLINTON A 4 BILLION BILL TO EXTEND BENEFITS FOR THE LONGTERM UNEMPLOYED THE MEASURE WAS THE ONLY SURVIVING PIECE OF HIS 163 BILLION ECONOMIC STIMULUS PROPOSAL CATERPILLAR POSTED A FIRSTQUARTER PROFIT AFTER A YEAREARLIER LOSS REFLECTING AN EMERGING REBOUND FOR CONSTRUCTION EQUIPMENT THE COMPANY'S STOCK SOARED 525 OR 84 TO 6750 OTHER MACHINERY MAKERS' SHARES ALSO ROSE MERRILL LYNCH AGREED TO PAY AS MUCH AS 30 MILLION TO TENS OF THOUSANDS OF INVESTORS TO SETTLE SEC CHARGES THAT IT MISPRICED CERTAIN INVESTMENTS BETWEEN 1972 AND 1987 AMDAHL SAID IT WILL SLASH ITS WORK FORCE BY 13 IN THE WAKE OF SINKING DEMAND FOR ITS MAINFRAME COMPUTERS MCDONNELL DOUGLAS IS IN AN UNFAVORABLE FINANCIAL CONDITION A TOP PENTAGON AUDITOR SAID THE DEFENSE CONTRACTOR DISPUTED HIS ASSESSMENT NICOTINE PATCH MAKERS ALZA AND CYGNUS POSTED DECLINING PATCH SALES ANALYSTS CITED LIMITS ON THE PRODUCTS' VALUE IN QUITTING SMOKING ALZA'S STOCK PLUNGED 5375 OR 16 TO 2850 CANTOR FITZGERALD WAS TOLD BY THE SEC THAT THE AGENCY MAY SUE THE SECURITIES FIRM FOR ALLEGED VIOLATIONS RELATED TO TREASURY AUCTION BIDS TEXACO SUN CO AND OCCIDENTAL PETROLEUM REPORTED FIRSTQUARTER PROFITS AFTER YEAREARLIER LOSSES REFLECTING COST CUTTING AND SOME IMPROVED CONDITIONS IN THE PETROLEUM INDUSTRY BANKAMERICA REPORTED A 484 MILLION FIRSTQUARTER PROFIT ALONG WITH MORE THAN 1 BILLION IN ACCOUNTING CHARGES THAT DIDN'T AFFECT EARNINGS A US TRADE PANEL RULED THAT IMPORTS OF SOUTH KOREAN MICROCHIPS HURT DOMESTIC PRODUCERS CLEARING THE WAY FOR THE US TO LEVY MODEST DUTIES NATURALGAS PRICES JUMPED EXTENDING A RECENT RALLY AMID INCREASED DEMAND DUE TO THE ECONOMIC RECOVERY CRUDE OIL PRICES GENERALLY DECLINED UNITED TECHNOLOGIES DEBT WAS DOWNGRADED BY MOODY'S WHICH CITED THE COMPANY'S EXPOSURE TO THE SHRINKING AIRLINE AND DEFENSE INDUSTRIES KEMPER PLANS TO SELL A MUTUAL FUND MANAGEMENT UNIT THAT HAS POSTED NET WITHDRAWALS BY SHAREHOLDERS DESPITE THE CURRENT BOOM FOR MUTUAL FUNDS PEOPLE CLOSE TO THE MATTER SAID CONCORD HOLDING IS SAID TO BE THE BUYER SALOMON POSTED A 102 MILLION FIRSTQUARTER LOSS STEMMING FROM BAD BONDTRADING BETS THE LOSS CONTRASTS WITH OTHER BROKERAGE FIRMS' RECORD PROFITS LONDON'S STOCK EXCHANGE IS CONSIDERING DEVELOPING A NEW TRADING AND MARKETMAKING SYSTEM WITH NASDAQ BONDS LEHMAN BROTHERS TREASURY INDEX 513162 OFF 059 COMMODITIES OIL 2015 A BARREL OFF 22 CENTS DOW JONES FUTURES INDEX 12363 UP 032 SPOT INDEX 12017 OFF 012 DOLLAR 10993 YEN OFF 078 15959 MARKS OFF 00036 9304230130 930423 DIVIDEND NEWS ETHYL CORP ETHYL CORP RICHMOND VA SAID IT WILL SPIN OFF ITS REMAINING 80STAKE IN FIRST COLONY CORP AN INSURANCE COMPANY IN THE FORM OF A SPECIAL DIVIDEND THE DIVIDEND OF ABOUT ONE SHARE OF FIRST COLONY COMMON STOCK FOR EACH THREE SHARES OF ETHYL WILL BE ISSUED JULY 1 TO ETHYL SHAREHOLDERS OF RECORD JUNE 11 CASH WILL BE PAID FOR FRACTIONAL SHARE EQUIVALENTS ETHYL HAS ABOUT 1184 MILLION SHARES OUTSTANDING FOLLOWING THE SPINOFF FIRST COLONY WILL HAVE ABOUT 493 MILLION SHARES OUTSTANDING ETHYL PREVIOUSLY SOLD 20 OF FIRST COLONY IN A PUBLIC OFFERING 9304230129 930423 GM TO BOOST OUTPUT AT ITS SATURN PLANT BY 1000 CARS A WEEK DETROIT GENERAL MOTORS CORP SAID IT WILL BOOST PRODUCTION OF SATURN CARS AT ITS SPRING HILL TENN ASSEMBLY PLANT BY ABOUT 1000 VEHICLES A WEEK WHEN IT ADDS A SECOND DAY OF OVERTIME BEGINNING TOMORROW THE SATURN PRODUCTION FACILITY WILL OPERATE SIX DAYS A WEEK INSTEAD OF FIVE DAYS A WEEK THIS IS AN INTERIM MOVE UNTIL SATURN ADDS A PERMANENT THIRD CREW IN JUNE A SPOKESMAN FOR THE SUBSIDIARY SAID THE THIRD CREW WILL ALLOW SATURN TO RETURN TO ITS ORIGINAL PRODUCTION SCHEDULE OF WORKING 10 HOURS A DAY FOUR DAYS A WEEK WITH THE THIRD CREW GM WILL BE ABLE TO RUN THE SPRING HILL ASSEMBLY PLANT SIX DAYS A WEEK BUT WITHOUT OVERTIME SEPARATELY GM SAID IT WILL OPERATE ONE SHIFT NEXT WEEK WHEN IT RESUMES PRODUCTION AT ITS ARLINGTON TEXAS ASSEMBLY PLANT THAT BUILDS FULLSIZE SEDANS BECAUSE OF SLOW SALES OF THOSE MODELS GM FORD MOTOR CO AND CHRYSLER CORP SAID THEY PLAN OVERTIME THIS WEEK AND NEXT AT SEVERAL ASSEMBLY PLANTS IN THE US AND CANADA ALTOGETHER THE 10 DOMESTIC AUTO MAKERS PLAN TO BUILD A TOTAL OF 227460 CARS AND TRUCKS THIS WEEK UP 273 FROM THE 178743 UNITS BUILT IN THE SAME WEEK A YEAR AGO 9304230127 930423 BUSINESS BRIEF SEQUENT COMPUTER SYSTEMS INC NET TRIPLES IN FIRST QUARTER ON 20 ADVANCE IN SALES SEQUENT COMPUTER SYSTEMS INC BEAVERTON ORE SAID FIRSTQUARTER NET INCOME TRIPLED TO 34 MILLION ON A 20 GROWTH IN SALES OF POWERFUL COMPUTERS THAT SUBSTITUTE FOR TRADITIONAL MAINFRAME COMPUTERS SEQUENT EARNINGS EQUAL TO 12 CENTS A SHARE COMPARED WITH NET OF 11 MILLION OR FOUR CENTS A SHARE A YEAR EARLIER REFLECT THE GROWING POPULARITY OF MACHINES POWERED BY CLUSTERS OF MICROPROCESSORS AMID A SLUMP IN DEMAND FOR MAINFRAMES SUCH AS THOSE SOLD BY INTERNATIONAL BUSINESS MACHINES CORP SALES IN THE PERIOD ROSE TO 776 MILLION FROM 644 MILLION A YEAR EARLIER 9304230126 930423 OTC FOCUS INTEL MICROSOFT OTHER BIG OTC ISSUES LEAD LATEDAY DROP ON NASDAQ MARKET BY MARY ROMANO SPECIAL TO THE WALL STREET JOURNAL NEW YORK LATE AFTERNOON SELLING OF OVERTHECOUNTER STOCKS ESPECIALLY IN SOME OF THE LARGEST ISSUES ERASED THE GAINS THE NASDAQ MARKET MADE THROUGHOUT THE DAY YESTERDAY AFTER OPENING LOWER THEN WORKING HIGHER FOR MUCH OF THE DAY THE NASDAQ COMPOSITE INDEX CLOSED DOWN 053 POINT OR 008 TO 66351 NASDAQ NATIONAL MARKET VOLUME WAS 220856200 SHARES COMPARED WITH WEDNESDAY'S VOLUME OF 215544400 SHARES ADVANCERS LED DECLINERS 1343 TO 1297 SOME OF THE NASDAQ'S BIGGEST ISSUES SUCH AS MICROPROCESSOR MAKER INTEL AND COMPUTER SOFTWARE MANUFACTURER MICROSOFT TOOK STEEP PLUNGES INTEL LOST 6 3/4 TO 96 AFTER ADVANCED MICRO DEVICES ANNOUNCED IT WAS SHIPPING 486 MICROPROCESSOR CHIPS INVESTORS READ THE NEWS AS A SIGN OF THE END OF INTEL'S MONOPOLY ON THE POPULAR 486 CHIP MICROSOFT PLUMMETED 1 5/8 TO 83 1/4 FOLLOWING AN ANNOUNCEMENT YESTERDAY THAT BORLAND INTERNATIONAL AND WORDPERFECT FORMED A SALES AND DEVELOPMENT PARTNERSHIP AIMED AT COMPETING AGAINST MICROSOFT OTHER LARGE ISSUES SOARED ON POSITIVE COMPANY NEWS MCI COMMUNICATIONS JUMPED 1 7/8 TO 49 AFTER POSTING EARNINGS THAT BEAT WALL STREET'S CONSENSUS OUTLOOK FOR THE FIRST QUARTER MCI EARNED 62 CENTS A SHARE FOR THE FIRST THREE MONTHS A 22 INCREASE OVER THE 51 CENTS EARNED A YEAR EARLIER TELECOMMUNICATIONS CLIMBED 1 1/4 TO 19 1/4 AFTER THE WALL STREET JOURNAL REPORTED THAT THE CABLE TELEVISION OPERATOR IS CLOSE TO AN AGREEMENT WITH CAROLCO PICTURES INC TO SHOW NEW CAROLCO MOVIES ON A PAYPERVIEW BASIS AT HOME AT THE SAME TIME AS THE THEATRICAL RELEASE THE OVERTHECOUNTER MARKET WAS ACTIVE FOR MOST OF THE SESSION WITH BARGAIN HUNTERS SEEKING BUYING OPPORTUNITIES ON BATTERED STOCKS SAID WILLIAM SULYA HEAD OF OTC TRADING AT AG EDWARDS & SONS BY THE END OF THE TRADING DAY PROFITTAKERS STEPPED BACK IN TO ERASE THE GAINS THE MARKET WAS UP DOWN ALL OVER THE LOT MR SULYA SAID SOME BATTERED HEALTH ISSUES HAVE REBOUNDED AND SOME MARKET OBSERVERS SUCH AS SCOTT BLEIER MARKET TECHNICIAN AT JOSEPHTHAL LYON & ROSS BELIEVE THE WORRY OVER HOW IMPENDING HEALTHCARE REFORMS MAY AFFECT HEALTH STOCKS MAY BE OVER SOONER RATHER THAN LATER THE HEALTH CARE UNCERTAINTY COULD COME TO A HEAD SHORTLY AND HEALTH CARE MAY STOKE THE FIRE FOR THE NASDAQ MR BLEIER SAID CYGNUS THERAPEUTIC SYSTEMS A MAKER OF ADHESIVE PATCH TRANSDERMAL DRUG DELIVERY SYSTEMS CLIMBED 1 1/4 TO 8 1/8 OXFORD HEALTH PLANS A HEALTH MAINTENANCE ORGANIZATION GAINED 1 3/4 TO 43 1/4 A NUMBER OF OTC STOCKS WERE AFFECTED BY FIRSTQUARTER EARNINGS REPORTS AMONG THE BIGGER MOVERS WAS S3 INC WHICH CLIMBED 3 1/2 TO 27 THE COMPANY SAID FIRSTQUARTER INCOME FROM OPERATIONS WAS 25 CENTS A SHARE COMPARED WITH EIGHT CENTS A SHARE A YEAR EARLIER RAINBOW TECHNOLOGIES JUMPED 1 3/4 TO 20 1/4 AFTER REPORTING FIRSTQUARTER INCOME OF 30 CENTS A SHARE COMPARED WITH 18 CENTS A SHARE LAST YEAR ANALYSTS HAD EXPECTED THE COMPANY TO REPORT EARNINGS OF ABOUT 28 CENTS A SHARE FILENET REPORTED FIRSTQUARTER NET INCOME OF TWO CENTS A SHARE COMPARED WITH 18 CENTS A SHARE A YEAR AGO ITS SHARES JUMPED 1 1/4 TO 11 1/4 ANALYSTS HAD EXPECTED THE COMPANY TO REPORT A LOSS OF ONE CENT A SHARE FOR THE PERIOD MCAFEE ASSOCIATES GAINED 1 5/8 TO 7 5/8 THE COMPANY REPORTED FIRSTQUARTER NET OF 14 CENTS A SHARE COMPARED WITH PRO FORMA NET OF 13 CENTS A YEAR EARLIER ON THE DOWNSIDE OPTICAL DATA SYSTEMS PLUNGED 3 TO 11 1/2 AFTER FIRSTQUARTER NET CAME IN AT 10 CENTS A SHARE WELL BELOW ANALYSTS' MEAN ESTIMATE OF 20 CENTS A SHARE AND A PENNY LESS THAN LAST YEAR'S 11 CENTS IN NONEARNINGS RELATED ACTIVITY AURA SYSTEMS JUMPED 1/2 TO 4 DAEWOO ELECTRONICS RAISED ITS ORDER FOR THE COMPANY'S AURASOUND TELEVISION SPEAKERS TO TWO MILLION ANNUALLY FROM 240000 A DEAL VALUED AT MORE THAN 4 MILLION DIGITAL MICROWAVE ROSE 1 1/4 TO 13 1/2 LATE YESTERDAY THE COMPANY RECEIVED A 5 MILLION CONTRACT FOR THE SUPPLY OF DIGITAL MICROWAVE RADIOS AND SERVICES TO PANAFON IN ATHENS GREECE MERRILL LYNCH & CO RAISED ITS INTERMEDIATETERM AND LONGTERM RATING ON THE COMPANY TO ABOVE AVERAGE FROM NEUTRAL CARDIOVASCULAR IMAGING SYSTEMS IMPROVED 5/8 TO 5 7/8 AFTER REPORTING THAT A PHASE I STUDY OF ITS INTRAVASCULAR ULTRASOUND PRODUCTS FOUND THAT ITS IMAGING EQUIPMENT RESULTED IN A SIGNIFICANT CHANGE IN THE ASSESSMENT OF LESIONS IN 68 OF THE 136 PATIENTS STUDIED ATLANTIC TELENETWORK'S VIRGIN ISLANDS TELEPHONE UNIT WON A REVERSAL OF A DECEMBER 1991 FEDERAL COMMUNICATIONS COMMISSION ORDER THAT DIRECTED VITELCO TO REFUND MORE THAN 939000 TO LONG DISTANCE CARRIERS ATLANTIC TELENETWORK GAINED 3/4 TO 12 1/4 9304230125 930423 BUSINESS BRIEF EMC CORP FIRSTQUARTER NET JUMPED NEW STORAGE PRODUCT CITED EMC CORP CITING GREATERTHANEXPECTED DEMAND FOR A NEW DISK STORAGE PRODUCT SAID FIRSTQUARTER NET INCOME ROSE SHARPLY TO 149 MILLION OR 32 CENTS A SHARE ON A 98 REVENUE INCREASE IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE EMC CLOSED AT 29 UP 3375 IN THE YEARAGO QUARTER THE HOPKINTON MASS MAKER OF DISK DRIVES HAD NET INCOME OF 52 MILLION OR 13 CENTS A SHARE SALES WERE 1306 MILLION COMPARED WITH 657 MILLION IN THE YEARAGO PERIOD EMC WHICH INTRODUCED ITS SYMMETRIX 5500 SERIES OF STORAGE DEVICES IN NOVEMBER SAID THAT UNDER CURRENT DEMAND IT WILL FINISH THE YEAR WITH A STRONG BACKLOG 9304230123 930423 FINANCING BUSINESS NUEVO ENERGY CO NUEVO ENERGY CO HOUSTON FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER 27 MILLION COMMON SHARES NUEVO SAID 15 MILLION SHARES WILL BE SOLD BY THE COMPANY AND 12 MILLION BY SUBSIDIARIES OF TORCHMARK CORP THE TORCHMARK SUBSIDIARIES CURRENTLY OWN 31 OF NUEVO'S SHARES OUTSTANDING AND WOULD OWN ABOUT 15 AFTER THE SALE TORCHMARK IS AN INSURANCE AND FINANCIAL SERVICES COMPANY NUEVO SAID ABOUT 22 MILLION SHARES WILL BE SOLD IN THE US AND CANADA AND THE REMAINDER INTERNATIONALLY THE FILING ALSO INCLUDES AN ADDITIONAL 405000 SHARES TO COVER OVERALLOTMENTS NUEVO WILL USE PROCEEDS FOR GENERAL PURPOSES INCLUDING DEVELOPMENT DRILLING EXPLORATION AND ACQUISITIONS PAINEWEBBER INC WILL SERVE AS LEAD UNDERWRITER 9304230122 930423 WHO'S NEWS MEDIA VISION INC MEDIA VISION INC FREMONT CALIF TWO PEOPLE WERE NAMED TO HEAD A NEWLY FORMED MULTIMEDIA SOFTWARE PUBLISHING GROUP STAN CORNYN FOUNDER AND FORMER HEAD OF WARNER NEW MEDIA AND MIN YEE FORMERLY VICE PRESIDENT OF MICROSOFT CORP'S MULTIMEDIA DIVISION WILL HEAD THE UNIT THE UNIT WILL DEVELOP ENTERTAINMENT AND EDUCATIONAL SOFTWARE PRODUCTS FOR CDROMBASED PERSONAL COMPUTERS MADE BY APPLE COMPUTER INC INTERNATIONAL BUSINESS MACHINES CORP AND FOR THOSE COMPATIBLE WITH IBM MACHINES 9304230121 930423 TECHNOLOGY WESTINGHOUSE SEEKS PROPOSALS BY CARRIERS FOR WIRELESS NETWORK PITTSBURGH IN A MOVE TO JUMPSTART THE MARKET FOR MOBILE DATA COMMUNICATIONS WESTINGHOUSE ELECTRIC CORP ASKED 15 CELLULAR AND WIRELESS COMPANIES FOR PROPOSALS TO BUILD A NATIONWIDE WIRELESS DATA NETWORK WESTINGHOUSE'S IDEA IS TO SPUR THE WIRELESS CARRIERS INDIVIDUALLY OR AS PART OF A CONSORTIUM TO DEVELOP A NETWORK THAT WOULD MAKE IT EASIER AND CHEAPER FOR USERS OF LAPTOP AND PALMTOP COMPUTERS AND OTHER DEVICES TO SEND AND RECEIVE INFORMATION OVER THE AIRWAVES IN RETURN THE GIANT PITTSBURGHBASED COMPANY HAS PROMISED TO BUY A SUBSTANTIAL AMOUNT OF TRANSMISSION CAPACITY WESTINGHOUSE PLANS TO OFFER TURNKEY COMMUNICATIONS SERVICES OVER THE NEW NETWORK FOR VARIOUS TYPES OF COMPANIES SUCH AS THOSE THAT MANAGE LARGE FLEETS OF VEHICLES AND SECURITY CONCERNS THAT PROVIDE REMOTE MONITORING WE'RE TRYING TO GET A NATIONAL PACKET DATA NETWORK THAT COVERS AT A MINIMUM THE 30 LARGEST METROPOLITAN AREAS SAID WILLIAM S JONES VICE PRESIDENT AND GENERAL MANAGER OF WESTINGHOUSE'S TRANSPORTATION MANAGEMENT SYSTEMS DIVISION WESTINGHOUSE IS PARTICIPATING IN A PILOT PROJECT IN BALTIMORE WITH BELL ATLANTIC CORP'S CELLULAR TELEPHONE UNIT THE SYSTEM WILL SEND INFORMATION OVER BELL ATLANTIC'S CELLULAR TELEPHONE NETWORK USING THE FREQUENCY BANDS THAT SEPARATE VOICE CHANNELS PACKET SWITCHING LETS MANY USERS SHARE A SINGLE CHANNEL BY DIVIDING A DATA MESSAGE INTO STANDARDSIZED PIECES OR PACKETS ASSIGNING EACH A CODE AND TRANSMITTING EACH PACKET INDIVIDUALLY THE CODE IS USED TO CHECK FOR ERRORS AND REASSEMBLE THE MESSAGE AT ITS DESTINATION WESTINGHOUSE WANTS THE SYSTEM RUNNING IN THE 20 LARGEST METROPOLITAN AREAS BY THE FIRST QUARTER OF 1994 MR JONES SAID THE COMPANY PLANS TO LINK THE WIRELESS NETWORK WITH ITS HIGHSPEED WIRED NETWORK WHICH PROVIDES LONGDISTANCE COMMUNICATIONS TO A NUMBER OF LARGE COMPANIES 9304230120 930423 LETTERS TO THE EDITOR AUDITORS SNIFF OUT MOST COOKED BOOKS YOUR APRIL 1 BUSINESS BULLETIN ITEM ON AUDITORS' OPINIONS IS ALAS BOUND TO CONFUSE THE PUBLIC EVEN MORE IT SAYS THE STANDARD AUDITOR'S REPORT WAS EXPANDED TO STRESS THE AUDITS' LIMITATION IN CATCHING FRAUD COMPOUNDING THE CONFUSION THE ITEM NOTES THAT CRITICS SAY AUDITORS CAN DUCK THE JOB OF CATCHING FRAUD NONSENSE AUDITING STANDARDS REQUIRE THE AUDITOR TO DESIGN THE AUDIT TO PROVIDE REASONABLE ASSURANCE OF DETECTING ERRORS AND IRREGULARITIES THAT ARE MATERIAL TO THE FINANCIAL STATEMENTS AND THE AUDITOR'S REPORT SAYS WE PLAN AND PERFORM OUR AUDIT TO OBTAIN REASONABLE ASSURANCE ABOUT WHETHER THE FINANCIAL STATEMENTS ARE FREE OF MATERIAL MISSTATEMENT THAT IS A CLEAR STATEMENT OF THE AUDITOR'S RESPONSIBILITY THE CONCEPT OF REASONABLE ASSURANCE RECOGNIZES THAT AN AUDIT SHOULD BE COSTEFFECTIVE AND THAT THE COST OF AUDITING ALL OR MOST TRANSACTIONS WOULD BE PROHIBITIVE THEREFORE AUDITS ARE ORDINARILY PERFORMED ON A TEST BASIS MOREOVER EVEN IF ALL TRANSACTIONS WERE AUDITED SOME FRAUDS MIGHT STILL SLIP THROUGH THE AUDITOR'S NET THAT IS BECAUSE AUDITORS CAN NEVER BE ABSOLUTELY CERTAIN THAT THE DOCUMENTS THEY ARE GIVEN TO EXAMINE ARE AUTHENTIC OR THAT THE INFORMATION THEY ARE PROVIDED BY MANAGEMENT OR OUTSIDE PARTIES IS TRUTHFUL BIG FRAUDS TYPICALLY INVOLVE MASSIVE COLLUSION AND FORGED OR FALSE DOCUMENTS BUT EVEN WITH THESE LIMITATIONS THERE ARE ONLY A FEW CASES OF UNDETECTED MATERIAL FRAUD IN RELATION TO THE MANY THOUSANDS OF AUDITS PERFORMED EACH YEAR 9304230119 930423 LOTUS POSTS 41 DROP IN 1STQUARTER PROFIT AS SALES STAYED FLAT CAMBRIDGE MASS LOTUS DEVELOPMENT CORP IN THE MIDST OF A PRICE WAR IN ITS FASTESTGROWING PRODUCT CATEGORY REPORTED A 41 DECLINE IN FIRSTQUARTER EARNINGS FROM ITS YEARAGO QUARTER SALES WERE FLAT THE RESULTS WERE SLIGHTLY AHEAD OF ANALYSTS' EXPECTATIONS HELPING LOTUS MAINTAIN WALL STREET'S CONFIDENCE THAT THE COMPANY CAN KEEP PACE WITH INDUSTRY LEADER MICROSOFT CORP LOTUS REPORTED FIRSTQUARTER NET INCOME OF 123 MILLION OR 29 CENTS A SHARE ON REVENUE OF 227 MILLION IN THE YEARAGO QUARTER WHEN SALES OF SEVERAL NEW LOTUS RELEASES WERE HOT NET INCOME WAS 208 MILLION OR 47 CENTS A SHARE ON REVENUE OF 2271 MILLION LOTUS IS TRYING TO BREAK AWAY FROM OVERRELIANCE ON ITS TRADITIONAL LINE OF SOFTWARE AND IS DEVELOPING AND SELLING MORE SOFTWARE THAT RUNS ON MACHINES WITH THE WINDOWS FORMAT DEVELOPED BY MICROSOFT LOTUS SAID ITS WINDOWS DESKTOP BUSINESS DOUBLED SINCE THE FIRST QUARTER OF 1992 WHILE SALES OF DOS SOFTWARE PRODUCTSA MARKET THE COMPANY STILL DOMINATESDECLINED BY 42 REFLECTING THE CONTINUED MIGRATION OF DOS USERS TO THE WINDOWS PLATFORM THE WINDOWS FORMAT NOW MAKES UP 49 OF LOTUS'S TOTAL SALES BUT THE TRANSITION HAS BEEN EXPENSIVE FOR LOTUS WITH THE SOFTWARE COMPANY'S EARNINGS BEING HURT BY THE COST OF ITS BATTLE WITH MICROSOFT FOR MARKET SHARE ALTHOUGH SUCCESS IN THIS MARKET REQUIRES AGGRESSIVE PRICING AND INCREASED SALES AND MARKETING EXPENSE SAID JIM MANZI LOTUS'S PRESIDENT AND CHIEF EXECUTIVE OFFICER WE BELIEVE THE INVESTMENTS WE'RE MAKING NOW WILL ALLOW US TO CAPTURE A GREATER SHARE OF THE WINDOWS DESKTOP MARKET MR MANZI SAID HE EXPECTS LOTUS'S GROWTH IN WINDOWS WILL CONTINUE WITH THE SHIPMENTS OF UPGRADED 123 SPREADSHEETS FOR BOTH WINDOWS AND NOTES A COMMUNICATIONS SOFTWARE PRODUCT HE ALSO FORECASTS STRONG CONTINUING DEMAND FOR LOTUS'S IMPROV SPREADSHEET FOR WINDOWS 9304230118 930423 30 THAIS FACE CHARGES OF MANIPULATING STOCKS BANGKOK THAILAND'S SECURITIES AND EXCHANGE COMMISSION FILED CRIMINAL COMPLAINTS AGAINST 30 PEOPLE ALLEGING STOCKMARKET MANIPULATION MOST OF THOSE CHARGED ALLEGEDLY WERE INVOLVED IN A MULTIMILLIONDOLLAR CONSPIRACY TO MANIPULATE THE SHARES OF THREE COMPANIES ALTHOUGH SEVERAL WELLKNOWN THAIS ARE AMONG THOSE NAMED IN THE COMPLAINT THE LIST IS SHORTER THAN MANY STOCKBROKERS HAD FEARED ANALYSTS SAY THE STOCK MARKET IS LIKELY TO SEE THE CONCLUSION OF THE SEC INVESTIGATION AS GOOD NEWS THE SEC HOPES IT WILL END RAMPANT MANIPULATION IN THE MARKET AND GIVE FOREIGN INVESTORS CONFIDENCE IN BANGKOK'S REGULATION CRIMINAL PENALTIES COULD BE UP TO TWO YEARS IN JAIL FOR EACH CHARGE AND FINES OF DOUBLE THE AMOUNT OF PROFIT INVOLVED THE ALLEGED MAIN FIGURE IN THE CONSPIRACY WAS SONG WATCHARASRIROJ WHO WAS CITED IN THE SEC'S FIRST MANIPULATION CASE IN NOVEMBER THE COMPLAINT ALLEGES THAT MR SONG AND OTHERS NAMED WERE IN COLLUSION WITH THE MANAGEMENT OF THREE COMPANIES PROPERTY DEVELOPER KRISDA MAHANAKORN CO RATTANA REAL ESTATE CO AND FIRST CITY INVESTMENTS LTD WHICH WAS BAILED OUT BY THE GOVERNMENT IN FEBRUARY ONE SEC OFFICIAL SAID THE AMOUNT OF MONEY INVOLVED WAS AT LEAST THREE BILLION BAHT 119 MILLION 9304230117 930423 LEISURE & ARTS NOT JUST RENAISSANCE MEN BY HEIDI WALESON NEW YORK THE FIRST THING YOU NOTICE ABOUT CHANTICLEER IS THAT ITS 12 MEMBERS ARE ALL MEN THE NEXT IS THAT THE GROUP IS HARD TO TYPE IT SINGS RENAISSANCE MUSIC BUT IT ALSO DOES SONGS BY STEPHEN SONDHEIM JAZZMAN BILL EVANS AND CLASSICAL COMPOSER NED ROREM CHANTICLEER'S FOUNDER LOUIS BOTTO SAYS HIS GROUP IS A CHAMBER CHOIR WITH SOMETHING FOR EVERYONE WE ARE 12 MEN AND WE SING VERY INTIMATE MUSIC HE SAYS THAT'S NOT USUALLY A MALE STEREOTYPE CHANTICLEER IS AN ANOMALY IN OTHER WAYS AS WELL ITS MEMBERS WORK 52 WEEKS A YEAR VIRTUALLY UNHEARD OF FOR AMERICAN CHORAL SINGERS TOURING IN THE US AND ABROAD PERFORMING AT HOME IN THE SAN FRANCISCO BAY AREA AND MAKING RECORDINGS ITS MOST RECENT TOUR TOOK THE GROUP FROM GRANTHAM PA TO ST LOUIS WITH STOPS IN AMHERST MASS AND KALAMAZOO MICH ALONG THE WAY IN THE MIDDLE OF THAT TOUR CHANTICLEER WAS SCHEDULED TO PLAY HERE AT LINCOLN CENTER TO A SOLDOUT HOUSE UNFORTUNATELY MORE THAN HALF OF THE TICKET BUYERS FELL VICTIM TO THE SOCALLED BLIZZARD OF THE CENTURY SO THE EXPERIENCE IN ALICE TULLY HALL WAS RATHER MORE INTIMATE THAN THE MEN OF CHANTICLEER MIGHT HAVE WISHED IN NORMAL WEATHER HOWEVER THEY DO PACK THEM IN WITH THEIR IDIOSYNCRATIC MIX OF MUSIC THAT HAS GARNERED THEM MORE THAN 80 CONCERT DATES A YEAR IT ALL STARTED ETHEREALLY ENOUGH 15 YEARS AGO WHEN SOME BAY AREA SINGERS GOT TOGETHER TO PERFORM THE RENAISSANCE CHORAL MASTERS JOSQUIN AND PALESTRINA AND OTHER HOUSEHOLD NAMES OF THE 16TH AND 17TH CENTURIES FOR THE SHEER LOVE OF THIS MUSIC THE TRANSFORMATION OF THESE SINGERS INTO THE POLISHED PERFORMING MACHINE THAT IS CHANTICLEER COULD FAIRLY BE CALLED BOTTO'S MIRACLE MR BOTTO STOPPED SINGING WITH THE GROUP THREE YEARS AGO AND IS NOW ITS ARTISTIC DIRECTOR PRESIDING OVER A SIXPERSON OFFICE AND A 15 MILLION BUDGET HE FOCUSES ON TOURING COMMISSIONING NEW MUSIC RECORDING AND LONGRANGE PLANNING JOSEPH JENNINGS A COUNTERTENOR CONDUCTS CHANTICLEER AND ARRANGES ITS MUSICAL SELECTIONS THE NEED FOR A SWITCH FROM STRAIGHT RENAISSANCE TO MIXED PROGRAMMING BECAME EVIDENT AS SOON AS CHANTICLEER STARTED TOURING IN 1981 MALE GLEE CLUBS AND BARBERSHOP QUARTETS ARE COMMON MR BOTTO SAYS WHEN WE TOURED THE COMMUNITY CONCERTS CIRCUIT WE WOULD HOOK THE AUDIENCE WITH BARBERSHOPPERS THEY'D NEVER HEARD ANY WILLIAM BYRD MAYBE A MADRIGAL HE SAYS THAT MOST PRESENTERS NOW ASK FOR MIXED PROGRAMS WE WANT TO DRAW PEOPLE IN AND WE KNOW WHAT WORKS FOR OUR AUDIENCE MR BOTTO EXPLAINS I THINK IT'S HARD FOR THE EARLIER THAN THOU' CROWD TO ACCEPT US BECAUSE WE DO ALL THIS OTHER STUFF PERHAPS THEY THINK WE DON'T TAKE IT SERIOUSLY ON THE CONTRARY MR BOTTO INSISTS THAT THE URGE TO BRANCH OUT BEYOND THE PREBACH ERA WAS AUTHENTIC NOT JUST A COMMERCIAL CALCULATION I FELT THE GUYS NEEDED TO HAVE A DIRECT RELATIONSHIP WITH THE AUDIENCE IN EVERYTHING WE DID THEY NEEDED TO BE DOING FOLK SONGS BARBERSHOP QUARTETS AND MEDLEYS SO THEY COULD TAKE THAT BACK TO RENAISSANCE MUSIC I DIDN'T WANT RENAISSANCE MUSIC TO BE STODGY AND DUSTY I WANTED IT TO BE SOMETHING LIVING IT WAS EASIER TO DO THAT IN OUR OWN LANGUAGE USING THE POPULAR FORMS OF OUR OWN CENTURY WHAT REALLY MAKES CHANTICLEER SPECIAL THOUGH IS ITS COUNTERTENORS THERE ARE FIVE OF THESE HIGHVOICED MALE SINGERS IN THE GROUP WITH A VOCAL RANGE ROUGHLY ENCOMPASSING THE SAME NOTES AS THOSE OF FEMALE ALTOS COUNTERTENORS WERE A NORMAL PART OF THE RENAISSANCE CHORAL UNIVERSE BUT THEY WERE CERTAINLY A RARITY ON THE COMMUNITY CONCERT CIRCUIT BEFORE CHANTICLEER THE GROUP HAS WORKED THEIR CLEAR PURE SOUND INTO ITS ARRANGEMENTS AND MADE THEM THE MOST IDENTIFIABLE FEATURE OF ITS SOUND THE ESSENCE OF THE GROUP'S SOUND HOWEVER IS NOT THE COUNTERTENORS THEMSELVES BUT THE BLEND MR BOTTO ACHIEVES THIS BY ASTUTELY PICKING SINGERS YOU WOULD BE SURPRISED HOW LITTLE WE TALK ABOUT BLEND CHOOSING VOICES IS 90 OF IT THE REST IS TUNING TALKING ABOUT COLOR AND VOWEL SOUNDS MR JENNINGS ADDS THE IDEA IS THAT EACH SECTION SHOULD SOUND AS ONE VOICE ONCE WE START TO WORK WE START TO FIND OUT ABOUT EACH OTHER'S VOICES AND WHOSE VOICE OR TENDENCY IS MORE APPROPRIATE FOR A CERTAIN STYLE OR COMPOSER THEN WE CAN START WITHIN A SECTION TO WORK TOWARD THAT VOICE OR VOICES AND THEY WILL ACTUALLY COLOR THE SOUND OF THE SECTION CHANTICLEER HOLDS AUDITIONS ONCE A YEAR A TWODAY EVENT AT WHICH APPLICANTS ARE JUDGED ON THEIR SOLO AND ENSEMBLE QUALITIES AND MUSICIANSHIP TO SAY NOTHING OF THEIR INTERPERSONAL SKILLS THESE GUYS PRACTICALLY LIVE TOGETHER THIS CONSTANT PROXIMITY CAN BE SO OVERWHELMING THAT CHANTICLEER STARTED HAVING REGULAR GROUP THERAPY SESSIONS TWO YEARS AGO IT SEEMS TO HAVE WORKED AT LEAST MUSICALLY IN CHANTICLEER'S ALICE TULLY HALL CONCERT THERE WAS ONE HEARTSTOPPING MOMENT AT THE END OF THE AGNUS DEI FROM ANTOINE BRUMEL'S LATE15THCENTURY MISSA BERZERETTE SAVOYENNE WHEN THE CHORUS DRAGGED OUT THE SYLLABLES OF THE TEXT HOLDING NOTES AND PILING ONE VOICE ATOP ANOTHER VIBRATING AND CHANGING LIKE A SLOWLY ROTATING PINWHEEL YET THIS MASTERFUL CONTROL DID NOT EXTEND TO OTHER ASPECTS OF THE PERFORMANCE ATTACKS WERE NOT ALWAYS SHARP AND ONE MISSED THE SOLOISTIC ABILITIES AND THE RHYTHMIC VITALITY THAT RENAISSANCE MUSIC REALLY NEEDS TO BE EFFECTIVE THE POPULAR SEGMENT OF THE PROGRAM SPIRITUALS SEND IN THE CLOWNS HAD FUSSY UNVIRTUOSIC ARRANGEMENTS YET CHANTICLEER'S MIX OF OLD AND NEW IS APPEALING IF NOT ALWAYS MUSICALLY SATISFYING THE SINGERS DO MAKE THAT DIRECT CONNECTION WITH THE AUDIENCE AND A FAIRLY MIXED AUDIENCE AT THAT JUST LIKE THE CHORUS IT COMES TO HEAR CHANTICLEER DESPITE ITS SAN FRANCISCO ORIGINS IS NOT A GAY CHORUS BUT A HOMOGENEOUS BLEND OF THE HETEROGENEOUS LIKE ITS MUSICAL PROGRAMS IT'S NOT AN ISSUE MR JENNINGS SAYS WE'RE GAY GUYS AND STRAIGHT GUYS WHO GET ALONG PERFECTLY WELL EVEN WHEN WE WERE TRAVELING AROUND THE COUNTRY IN A VAN WE'RE A MODEL FOR THE ARMED FORCES MR BOTTO SAYS MS WALESON IS A MUSIC WRITER IN NEW YORK 9304230116 930423 WHO'S NEWS BALLY GAMING APPOINTS NEW PRESIDENT STATUS OF MAISS ISN'T STATED LAS VEGAS BALLY GAMING INTERNATIONAL INC SAID HANS KLOSS HEAD OF ITS BALLY WULFF SUBSIDIARY WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THE GAMBLINGMACHINE MAKER RAISING QUESTIONS ABOUT THE STATUS OF THE COMPANY'S PREVIOUS PRESIDENT ALAN MAISS IN A NEWS RELEASE THE COMPANY MADE NO MENTION OF MR MAISS BUT SAID THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE RICHARD GILLMAN WAS RELINQUISHING THE PRESIDENT'S ROLE A COMPANY SPOKESMAN REFUSED TO SAY WHEN MR MAISS STEPPED DOWN AS PRESIDENT OR WHETHER HE HAD ANY FURTHER DEALINGS WITH THE COMPANY MR MAISS COULDN'T BE LOCATED FOR COMMENT THE CHIEF OPERATING OFFICER'S POSITION HAD BEEN VACANT MR KLOSS 51 YEARS OLD HAS BEEN MANAGING DIRECTOR OF THE BALLY WULFF UNIT SINCE 1981 AND A DIRECTOR OF BALLY GAMING SINCE 1991 MR GILLMAN 61 WAS TRAVELING AND COULDN'T BE REACHED FOR COMMENT 9304230115 930423 ECONOMY CONGRESS CLEARS REMAINS OF STIMULUS BILL 4 BILLION FOR EXTENDED JOBLESS BENEFITS BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONGRESS SENT THE WHITE HOUSE A 4 BILLION EMERGENCY SPENDING BILL TO FINANCE EXTENDED UNEMPLOYMENT BENEFITS FOR AN ESTIMATED 19 MILLION JOBLESS WORKERS THROUGH SEPT 30 THE END OF THIS FISCAL YEAR THE MEASURE ADOPTED 301114 IN THE HOUSE YESTERDAY IS THE LAST REMNANT OF THE CLINTON ADMINISTRATION'S ONCE AMBITIOUS ECONOMICSTIMULUS PACKAGE AND DEMOCRATS RAGED AGAINST SENATE REPUBLICANS AND THE FILIBUSTER RULES THAT PERMITTED THE MINORITY TO FRUSTRATE THE NEW PRESIDENT THE TONE WAS SUCH THAT THE CHAIRMAN WAS FORCED ON SEVERAL OCCASIONS TO CHASTISE EVEN THE LEADERSHIP FOR TREADING ON THE DEBATE RULE THAT FORBIDS HOUSE MEMBERS FROM CHARACTERIZING SENATE ACTIONS I BREAK IT ANYTIME I CAN JOKED MAJORITY WHIP DAVID BONIOR AFTER A FLOOR SPEECH IN WHICH THE MICHIGAN DEMOCRAT LECTURED THE OTHER CHAMBER THE PEOPLE SENT YOU TO DO A JOB FOR THEM WHAT YOU DID INSTEAD WAS A JOB ON THEM THE SPARRING SPILLED OVER INTO A JOINT HOUSESENATE HEARING ON REFORMING CONGRESS WHERE SEN RICHARD LUGAR R IND ARGUED THAT THE SENATE FULFILLED ITS CONSTITUTIONAL ROLE AND THAT THE FILIBUSTER WOULD NEVER HAVE BEEN SUSTAINED BUT FOR PUBLIC OPPOSITION TO THE PACKAGE IN THIS CASE THE PUBLIC WAS HEARD BY AT LEAST THOSE WHO WERE CONDUCTING THE FILIBUSTER HE SAID IT'S THE RULES OF THE SENATE IT'S NOT THE CONSTITUTION ANSWERED DEMOCRATIC REP GEORGE MILLER OF CALIFORNIA AS APPROVED BY THE HOUSE LAST MONTH THE STIMULUS BILL PROMISED 163 BILLION IN NEW APPROPRIATIONS COUPLED WITH 32 BILLION TO BE RELEASED FROM EXISTING TRUST FUNDS FOR HIGHWAYS AND PUBLIC WORKS THE MEASURE THAT WAS SENT BACK BY THE SENATE WEDNESDAY NIGHT INCLUDES ONLY THE 4 BILLION FOR JOBLESS BENEFITS AND THE LOSS COULD MAKE IT THAT MUCH HARDER FOR THE HOUSE LEADERSHIP TO BALANCE ITS OWN CONSERVATIVE AND LIBERAL FACTIONS THE BLACK CAUCUS FOR EXAMPLE REMAINS A THREAT TO CONSERVATIVEBACKED LEGISLATION DUE UP NEXT WEEK TO EXPEDITE THE PRESIDENT'S ABILITY TO CUT INDIVIDUAL ITEMS FROM SPENDING BILLS AND HOUSE REPUBLICANS HAVE BEEN EMBOLDENED TO PLAY ON THESE DIVISIONS WHILE DERIDING DEMOCRATIC LOYALISTS AS CLINTON CYBORGS JUST AS GOP LAWMAKERS WERE DUBBED REAGAN ROBOTS A DECADE AGO MAJORITY LEADER RICHARD GEPHARDT VOWED TO RENEW EFFORTS TO WIN BACK AT LEAST SOME OF THE SUMMER JOBS AND HIGHWAY FUNDS LOST IN THE STALEMATE THE MISSOURI DEMOCRAT ALSO IMPLICITLY WARNED THAT THE ADMINISTRATION'S RUSSIAN AID PACKAGE WOULD HAVE TO WAIT UNTIL SOME RESOLUTION OF THE PRESIDENT'S ECONOMIC PROGRAM WE NEED A DOMESTIC ECONOMIC PROGRAM FOR AMERICA BEFORE WE CAN TALK ABOUT FINANCING REFORM EFFORTS ELSEWHERE SAID MR GEPHARDT WE HAVE TO GET THE CLINTON ECONOMIC PROGRAM UNDER WAY REP DAVID OBEY CHAIRMAN OF THE APPROPRIATIONS SUBCOMMITTEE FOR FOREIGN OPERATIONS SAID ANY SUPPLEMENTAL REQUEST FOR RUSSIA WOULD BE TAKEN UP ONLY WHEN HE DRAFTS HIS ANNUAL SPENDING BILL THIS MONTH FOR THE FISCAL YEAR BEGINNING OCT 1 AND WITH YESTERDAY'S REPORT OF A JUMP IN NEW JOBLESS CLAIMS THE WISCONSIN DEMOCRAT SAID THE GOP VICTORY OVER THE STIMULUS BILL COULD REBOUND AGAINST REPUBLICANS RESPONSIBLE FOR KILLING THE MEASURE IT IS A DANGEROUS SITUATION TO VOTE AGAINST SOMETHING THAT LOSES OR FOR SOMETHING THAT PASSES MR OBEY SAID OF THE GOP THIS TIME THEY GOT THE WORST OF IT WITHOUT ACTION ON YESTERDAY'S BILL THE LABOR DEPARTMENT FACED A SHORTFALL IN FUNDING FOR THE FEDERAL BENEFITS PROGRAM THAT WAS EXTENDED LAST MONTH TO RUN THROUGH THE END OF THIS FISCAL YEAR PEOPLE WHO HAVE EXHAUSTED THEIR 26 WEEKS OF STATE UNEMPLOYMENT BENEFITS ARE ELIGIBLE FOR AN ADDITIONAL 20 TO 26 WEEKS OF EMERGENCY BENEFITS UNDER THE PROGRAM BUT WITHOUT THE SUPPLEMENTAL FUNDS PAYMENTS MIGHT HAVE BEEN CUT OFF TO HUNDREDS OF THOUSANDS OF WORKERS NEXT WEEK UNDER THE EMERGENCY PROVISIONS OF THE BUDGET LAW THE 4 BILLION WILL BE DEFICITFINANCED BUT GIVEN THE PRESSURE TO ACT MINORITY LEADER ROBERT MICHEL OF ILLINOIS JOINED IN SUPPORT OF THE BILL DESPITE CONTINUED OPPOSITION FROM MOST OF HIS PARTY THE ADMINISTRATION HAD HOPED TO USE THE SAME EMERGENCY LANGUAGE TO EXEMPT THE COST OF ITS STIMULUS PACKAGE AND ONE RESULT OF THE DEFEAT IS TO GREATLY COMPLICATE THE APPROPRIATIONS LEADERSHIP'S TASK OF COPING WITH NEXT YEAR'S BUDGET THE ADMINISTRATION HAS ALREADY SUBMITTED REQUESTS THAT WOULD DRIVE ITS BUDGET 54 BILLION OVER THE STATUTORY CAPS GOVERNING DIRECT SPENDING IN FISCAL 1994 AND LAWMAKERS HAD HOPED THAT THE FREE MONEY OF THE STIMULUS BILL WOULD GIVE THEM A CHANCE TO BUILD A CUSHION AGAINST THESE DEMANDS FOR EXAMPLE THE STIMULUS BILL PROMISED 186 BILLION TO MAKE UP A SHORTFALL IN FUNDS FOR PELL GRANTS TO LOWINCOME COLLEGE STUDENTS THAT COST WILL HAVE TO NOW BE ABSORBED WITHIN THE BUDGET LIMITS EVEN AS THE SAME SUBCOMMITTEES WILL BE ASKED TO FIND 1 BILLION FOR THE PRESIDENT'S NEW INITIATIVES FOR THE EDUCATION DEPARTMENT AND ANOTHER 335 BILLION FOR THE DEPARTMENT OF HEALTH AND HUMAN SERVICES THE DEMISE OF THE SPENDING PACKAGE CAME AMID FURTHER SIGNS OF TROUBLE AHEAD FOR MR CLINTON'S PACKAGE OF TAX INCENTIVES AND THIS FROM HIS OWN PARTY NEW JERSEY SEN BILL BRADLEY A DEMOCRAT ON THE FINANCE COMMITTEE SAID HE WILL TRY TO KILL THE ADMINISTRATION'S PROPOSAL FOR AN INVESTMENT TAX CREDIT WHEN THAT PANEL DRAFTS TAX LEGISLATION HE SAID THE 295 BILLION COST FOR NARROW INCENTIVES OPPOSED BY THE VAST MAJORITY OF CORPORATIONS SHOULD INSTEAD BE DEVOTED TO DEFICIT REDUCTION OR MAINTAINING THE TOP CORPORATE TAX RATE ALREADY THE CHAIRMEN OF BOTH THE HOUSE AND SENATE TAXWRITING COMMITTEES HAVE EXPRESSED OPPOSITION TO THIS TAX CREDIT JACKIE CALMES CONTRIBUTED TO THIS ARTICLE 9304230114 930423 EXBOLAR EXECUTIVES ARE ACCUSED BY SEC OF INSIDER TRADING WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION ACCUSED TWO FORMER EXECUTIVES OF ILLFATED BOLAR PHARMACEUTICAL CO OF SELLING THEIR STOCK IN THE COMPANY SHORTLY BEFORE THE PUBLIC DISCLOSURE THAT BOLAR HAD RIGGED TESTS OF ITS GENERIC BLOODPRESSURE DRUG IN AN INSIDERTRADING SUIT FILED IN FEDERAL COURT IN NEW YORK THE SEC IS SEEKING UNSPECIFIED DISGORGEMENT FROM FORMER BOLAR PRINCIPALS ROBERT SHULMAN AND JACOB RIVERS BOTH OF WHOM ARE SERVING PRISON TERMS FOR THEIR ROLES IN THE DRUGTESTING SCANDAL THE SUIT ALLEGES THAT THE TWO MEN SUCCESSFULLY AVOIDED SUBSTANTIAL LOSSES BY SELLING THEIR BOLAR COMMON STOCK BETWEEN JANUARY 1988 AND DECEMBER 1989 WHILE THEY KNEW THAT THE COMPANY HAD OBTAINED FEDERAL APPROVAL FOR ITS GENERIC DRUG BASED ON FALSIFIED DATA THE FALSE DRUG TESTS WERE DISCLOSED IN JANUARY 1990 AND THE COMPANY PAID A 10 MILLION FINE IN MARCH 1991 EIGHT FORMER BOLAR OFFICIALS INCLUDING MR SHULMAN AND MR RIVERS WERE SUBSEQUENTLY CONVICTED OF FEDERAL CHARGES MR SHULMAN WHO WAS CHAIRMAN CHIEF EXECUTIVE AND PRESIDENT OF THE COPIAGUE NY COMPANY WAS SENTENCED TO FIVE YEARS IN PRISON AND FINED 1250000 MR RIVERS FORMERLY EXECUTIVE VICE PRESIDENT PLEADED GUILTY AND WAS SENTENCED TO FOUR YEARS IN FEDERAL PRISON AND FINED 1 MILLION THE SEC IS SEEKING A COURT ORDER BARRING THE TWO MEN FROM SERVING AS OFFICERS OR DIRECTORS OF ANY PUBLIC COMPANY THE DEFENDANTS COULDN'T BE LOCATED FOR COMMENT A SPOKESMAN SAID THE COMPANY WHICH CHANGED ITS NAME TO CIRCA PHARMACEUTICAL INC EARLIER THIS MONTH WOULD HAVE NO COMMENT ON THE SEC LAWSUIT 9304230113 930423 VIRGINIA EXGOVERNOR TO HEAD US PANEL ON AVIATION INDUSTRIES WASHINGTON PRESIDENT CLINTON HAS DECIDED TO APPOINT FORMER VIRGINIA GOV GERALD BALILES AS CHAIRMAN OF A 15MEMBER COMMISSION THAT WILL STUDY THE NATION'S TROUBLED AIRLINE AND AEROSPACE INDUSTRIES ADMINISTRATION OFFICIALS SAID THE WHITE HOUSE REGARDS MR BALILES A DEMOCRAT AND FRIEND OF THE PRESIDENT'S AS A CONSENSUS BUILDER WITH THE POLITICAL SKILLS NEEDED TO RECONCILE THE OFTEN CONFLICTING INTERESTS OF AEROSPACE MANUFACTURERS AIRLINES LABOR UNIONS AIRPORT OPERATORS CARGO CARRIERS AND PRIVATE PILOTS MR CLINTON AND CONGRESSIONAL LEADERS ARE EXPECTED TO NAME THE OTHER MEMBERS OF THE BIPARTISAN COMMISSION WITHIN A FEW DAYS OFFICIALS SAID UNDER A RECENTLY ENACTED LAW THE SENATE AND HOUSE EACH WILL APPOINT THREE DEMOCRATS AND TWO REPUBLICANS AND THE WHITE HOUSE SELECTS THE CHAIRMAN AND FOUR OTHERS IN ADDITION THERE WILL BE 11 NONVOTING MEMBERS FIVE NAMED BY THE SENATE FIVE BY THE HOUSE AND ONE BY THE PRESIDENT THE PANEL THE NATIONAL COMMISSION TO ENSURE A COMPETITIVE AIRLINE INDUSTRY WILL ADDRESS A VARIETY OF REMEDIES INCLUDING TAX AND REGULATORY RELIEF AND A COHERENT STRATEGY FOR NEGOTIATING AVIATION AGREEMENTS WITH FOREIGN GOVERNMENTS IT IS TO REPORT BACK WITH RECOMMENDATIONS IN 90 DAYS 9304230112 930423 LEISURE & ARTS FOOTWEAR FOR THE MORNING AFTER EARTH DAY BY SUSAN G HAUSER PORTLAND ORE I SENT MY SON TO SCHOOL IN SHOES MADE OUT OF DISPOSABLE DIAPERS AND HE CAME HOME A HERO HE WAS THE FIRST KID ON THE BLOCK TO GET THE DEJA SHOE BILLED AS THE WORLD'S FIRST SHOE MADE FROM RECYCLED MATERIALS AND I FULLY EXPECTED HIS FELLOW SIXTHGRADERS TO PELT HIM MERCILESSLY WITH THEIR USUAL CLOACAL HUMOR INSTEAD MY SON'S SCHOOLMATES PATTED HIM ON THE BACK AND CONGRATULATED HIM FOR SPARING THE LANDFILLS YET ANOTHER LOAD OF DIAPERS TIRES MILK JUGS AND THE VARIOUS OTHER ITEMS FROM WHICH THESE SHOES ARE MADE I THOUGHT THE KIDS WOULD AT LEAST CRACK A FEW JOKES ABOUT MY SON'S SMELLY FEET AND HOW HIS GARBAGE SHOES IMPROVED THE ODOR OR SOMETHING LIKE THAT BUT IT TURNS OUT THAT JULIE LEWIS THE PORTLAND HOUSEWIFE WHO INVENTED THESE SHOES HAD THE RIGHT IDEA SHE FIGURED CONSUMERS OF ALL AGES WOULD TAKE RECYCLING TO HEART AND SOLE IN OREGON WHERE RECYCLING HAS BECOME AN ART FORM MS LEWIS IS A REGULAR RENOIR SHE FUSSED WITH THE FAMILY GARBAGE LONG BEFORE DEJA SHOE CROSSED HER MIND SHE CAN TALK A BLUE STREAK ABOUT SOLID WASTE AND SHE HAS FRIENDS WHO SPEND THEIR WAKING HOURS DOING THINGS LIKE WEAVING RUGS FROM PLASTIC BREAD BAGS IN FACT IT WAS THE BAG WEAVER WHO GAVE MS LEWIS THE NOTION THAT FABRIC COULD BE MADE FROM USED PLASTIC FROM THERE HER MIND BOUNCED TO RUBBER TIRES AND A DISTANT MEMORY OF WEARING SANDALS MADE FROM THEM THE NEXT THING SHE KNEW SHE WAS ON THE PHONE TO BILL BOWERMAN THE RETIRED COACH OF THE UNIVERSITY OF OREGON TRACK TEAM TO TALK ABOUT SHOES MR BOWERMAN IS LEGENDARY FOR HIS INNOVATIVE APPROACH TO SHOES SPECIFICALLY TRACK SHOES HIS DESIGNS HELPED LAUNCH NIKE INC WHICH WAS COFOUNDED BY PHIL KNIGHT ONE OF HIS RUNNERS MR BOWERMAN TOOK LIBERTIES WITH HIS WIFE'S WAFFLE IRON INVENTING THE WAFFLE SOLE AND CHANGING THE LOOK OF ATHLETIC SHOES FOREVER WHEN MS LEWIS CALLED HIM SHE WANTED TO DISCUSS SOMETHING LESS APPETIZING THAN WAFFLES BUT HER IDEA OF MANUFACTURING SHOES FROM RECYCLED MATERIALS APPEALED TO MR BOWERMAN HE HELPED HER BUILD A PROTOTYPE SHOE TO GET HER BUSINESS OFF THE GROUND SHE APPLIED FOR A 110000 GRANT FROM THE LOCAL AGENCY IN CHARGE OF RECYCLING UNFORTUNATELY SHE HAD NO BUSINESS CLOTHES TO WEAR TO THE GRANT INTERVIEW I'D BEEN AT HOME FOR 10 YEARS WITH MY KIDS EXPLAINS MS LEWIS I HAD NOTHING TO WEAR SO I WENT TO A USED CLOTHING STORE AND BOUGHT A POWER SUIT THE GRANT WAS ENOUGH TO MAKE 5000 DEJA SHOES IN HER RECYCLED CLOTHES MS LEWIS PEDDLED FOOTWEAR MADE OF PLASTIC TRIMMINGS FROM DISPOSABLE DIAPERS PLASTIC MILK JUGS AND SODA BOTTLES PLASTICFOAM CUPS AND TRAYS COFFEE FILTERS FOAM CUSHIONS FILE FOLDERS MAGAZINES CARDBOARD RUBBER TIRES AND TRIMMINGS FROM WET SUITS AND GASKETS NOW THREE YEARS LATER MS LEWIS'S DEJA INC HAS 10 EMPLOYEES AND A MANAGEMENT TEAM MADE UP OF FORMER EXECUTIVES OF AVIA GROUP INTERNATIONAL INC A LOCAL COMPANY THAT WAS BOUGHT OUT BY REEBOK INTERNATIONAL LTD THE MANAGEMENT TEAM'S EXPERTISE LEAVES MS LEWIS FREE TO ATTEND MORE AND MORE CONFERENCES FOR SOLIDWASTE BUFFS AND TO ENGAGE IN A HOBBY FROM HER TEENAGE YEARS HIKING THROUGH LANDFILLS IN SEARCH OF RECYCLABLE MATERIALS ALTHOUGH MS LEWIS IS NOT AT THE OFFICE EVERY DAY SHE HAS PUT HER STAMP ON COMPANY OPERATIONS FOR EXAMPLE LIKE HER CLOTHES THE OFFICE FURNITURE IS ALL SECONDHAND THE OFFICE PAPER IS MADE FROM RECYCLED PAPER THE BALLPOINT PENS ARE NONDISPOSABLE AND THE SCISSORS ARE MADE FROM RECYCLED PLASTIC THE SHOE BOXES AS WELL ARE MADE FROM RECYCLED PAPER FURTHERMORE 5 OF DEJA INC'S PRETAX PROFITS IS DONATED TO THE SPECIES SURVIVAL COMMISSION A GROUP THAT WORKS TO PROTECT ENDANGERED PLANTS AND ALL EMPLOYEES ARE GIVEN FOUR HOURS A MONTH TO STAY HOME AND DO THEIR PERSONAL RECYCLING YOU HAVE TO BE AWFULLY INSENSITIVE TO BE AROUND THIS AND NOT GET PASSIONATE ABOUT THE ENVIRONMENT SAYS BRUCE MACGREGOR COMPANY PRESIDENT AND CHIEF EXECUTIVE OFFICER BUT MR MACGREGOR'S PASSION DOESN'T QUITE MEASURE UP ACCORDING TO MS LEWIS WHO IS STILL WAITING FOR HIM TO AFFIX TO HIS BMW THE RECYCLING BUMPER STICKER SHE GAVE HIM FOR HIS BIRTHDAY AT LEAST HE'S DOWN FROM FILLING TWO GARBAGE CANS A WEEK TO JUST ONE HE IS NOT YET A VEGETARIAN AS MS LEWIS IS BUT HE SAYS HE HAS CUT HIS MEAT CONSUMPTION BY HALF MR MACGREGOR IS ALSO LEARNING TO WATCH HIS P'S AND Q'S WHEN HE TALKS ABOUT THE ENVIRONMENT FROM A BUSINESS STANDPOINT WHEN HE MENTIONS THE GREEN WAVE THAT IS CHANGING THE FACE OF CONSUMERISM MS LEWIS COUNTERS IT'S NOT A WAVE OR A FAD WE'LL RUN OUT OF RESOURCES IF WE DON'T DO THIS OCCASIONALLY MR MACGREGOR SLIPS AND CASUALLY REFERS TO THE GREEN THING BUT TO MS LEWIS THE GREEN THING IS A WAY OF LIFE WE WALK OUR TALK SHE SAYS EARNESTLY AS FOR MY 12YEAROLD SON HE NOW WALKS AROUND IN SHOES MADE OUT OF DIAPERS AND HE'S DARN PROUD OF IT HIS DEJA SHOES ARE BLACK HIGHTOPS AND REALLY DON'T LOOK THAT MUCH DIFFERENT FROM THE NIKES AND REEBOKS THAT HAVE KEPT HIM IN STYLE OVER THE YEARS THE PRICE IS COMPARABLE TO LOWERPRICED MODELS OF THESE ATHLETIC SHOES AS MY SON SAID AS WE LEFT THE SHOE STORE WE JUST SPENT 65 ON GARBAGE MS HAUSER IS A WRITER IN PORTLAND 9304230111 930423 MCDONNELL DOUGLAS'S FINANCIAL HEALTH IS CHALLENGED BY TOP PENTAGON AUDITOR BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MCDONNELL DOUGLAS CORP THE NATION'S LARGEST DEFENSE CONTRACTOR IS IN AN UNFAVORABLE FINANCIAL CONDITION A TOP PENTAGON AUDITOR SAID WILLIAM REED DIRECTOR OF THE DEFENSE CONTRACT AUDIT AGENCY TOLD A HOUSE GOVERNMENT OPERATIONS SUBCOMMITTEE THAT HE HAS CONTINUING CONCERNS ABOUT MAJOR FINANCIAL UNCERTAINTIES AT THE COMPANY MOST NOTABLY ITS DEBT LEVELS AND PERFORMANCE PROBLEMS JOHN MCDONNELL THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER VIGOROUSLY DISPUTED MR REED'S ASSERTIONS SAYING THAT MCDONNELL DOUGLAS IS NOW IN A FINANCIAL CONDITION THAT IS STRONG AND GETTING STRONGER HE ADDED WE WILL BE REDUCING OUR DEBT SIGNIFICANTLY DURING THE COURSE OF THIS YEAR MR REED TOLD THE SUBCOMMITTEE THAT HIS CONCLUSIONS WERE BASED ON A REPORT COMPLETED BY HIS AGENCY LAST OCTOBER THE AGENCY WHICH CONTINUOUSLY MONITORS THE FINANCES OF DEFENSE CONTRACTORS HAS ABOUT TWO DOZEN AUDITORS IN PLACE AT MCDONNELL DOUGLAS WHERE THEY HAVE FULL ACCESS TO THE COMPANY'S BOOKS ALBEIT ON A SOMEWHAT DELAYED BASIS A NEW AGENCY REPORT ON THE COMPANY'S FINANCIAL CONDITION IS TO BE COMPLETED SOON MR REED'S SKEPTICISM ABOUT THE COMPANY'S FINANCES AND PERFORMANCE SHARPLY CONTRASTS WITH THE COMPANY'S PORTRAIT OF ITSELF AS EMERGING STRONGLY FROM ITS TIGHT FINANCIAL POSITION AT THE START OF THE DECADE HIS TESTIMONY ALSO SOUNDED NEW ALARMS IN CONGRESS ABOUT MCDONNELL DOUGLAS AND ITS CONTROVERSIAL C17 MILITARY CARGO JET PROGRAM WHICH SOME MEMBERS WANT TO SEE KILLED HE BRUSHED ASIDE MCDONNELL DOUGLAS'S RECORD QUARTERLY EARNINGS REPORTED THIS WEEK SAYING THAT COMPANIES GENERALLY PUT THE BEST FACE POSSIBLE ON THEIR FINANCIAL STATEMENTS THE COMMENTS CAME DURING THE COURSE OF A HEARING MOST NOTABLE FOR THE POUNDING MCDONNELL DOUGLAS RECEIVED FROM DEMOCRATS AND REPUBLICANS ALIKE OVER ITS HANDLING WITH THE AIR FORCE OF THE C17 MR MCDONNELL WAS REPEATEDLY REPROACHED BY ANGRY COMMITTEE MEMBERS REP GLENN ENGLISH D OKLA AT ONE POINT SAID HE FOUND IT DIFFICULT TO BELIEVE MR MCDONNELL'S TESTIMONY THAT HE DIDN'T RECALL THE DETAILS OF CERTAIN MEETINGS WITH AIR FORCE OFFICIALS IN 1990 REP CORRINE BROWN A FLORIDA DEMOCRAT ORDERED MR MCDONNELL TO READ ALOUD PART OF AN AIR FORCE MEMO ABOUT THE COMPANY'S POOR FINANCIAL STATE AND AN EXCERPT FROM A LAW ON DEFENSE CONTRACTING REP CHRIS SHAYS R CONN SAID OF MCDONNELL DOUGLAS AND THE AIR FORCE YOU GUYS CONSPIRED AND THE LOSER IS THE TAXPAYER WHEN MR MCDONNELL DISPUTED THE ACCUSATION OF CONSPIRACY REP SHAYS POINTEDLY REMINDED THE EXECUTIVE THAT HE WAS TESTIFYING UNDER OATH MR REED ADDED THAT HE NOW BELIEVES THAT AS A RESULT OF A COORDINATED EFFORT BETWEEN THE AIR FORCE AND THE COMPANY WE WERE DELIBERATELY MISLED ABOUT THE STATE OF MCDONNELL DOUGLAS'S FINANCES IN 1990 ACCORDING TO A REPORT BY THE PENTAGON'S INSPECTOR GENERAL RELEASED EARLIER THIS YEAR THE AIR FORCE BELIEVING THAT THE COMPANY WAS ON THE VERGE OF BANKRUPTCY IMPROPERLY BOOSTED THE COMPANY'S CASH POSITION IN 1990 AN AIR FORCE SPOKESMAN DECLINED TO COMMENT YESTERDAY ON MR REED'S ASSERTION NOTING THAT THE SERVICE'S REVIEW OF THE INSPECTOR GENERAL'S REPORT RECENTLY WAS SENT TO DEFENSE SECRETARY LES ASPIN WHO IS REVIEWING IT IN THE PAST THE AIR FORCE HAS SAID IT BELIEVES IT ACTED PROPERLY IN ITS HANDLING OF THE COMPANY IN HIS TESTIMONY MR MCDONNELL DISMISSED THE INSPECTOR GENERAL'S REPORT AS AN ADVOCACY REPORT FOR A CERTAIN POSITION ALMOST LOST IN THE SOUND AND FURY OF THE HEARING WAS THE COMPANY'S FIRST WIDERANGING RESPONSE TO THE INSPECTOR GENERAL'S CHARGES AS MR MCDONNELL AND OTHER COMPANY EXECUTIVES DESCRIBE IT IN 1990 THE AIR FORCE BECAUSE OF CONTRACT DISPUTES WITH THE COMPANY WAS UNFAIRLY WITHHOLDING HUNDREDS OF MILLIONS OF DOLLARS IN PAYMENTS DUE FOR WORK PERFORMED WITH THE COST OF THE C17 PROGRAM RUNNING AT 150 MILLION A MONTH THE COMPANY THEN WAS IN TOO WEAK A FINANCIAL CONDITION TO FUND THE PROGRAM ON ITS OWN WHAT I SAID TO THE AIR FORCE WAS THAT ONE OF THE REASONS IT WAS URGENT FOR THE AIR FORCE TO PAY US WAS BECAUSE IT WAS PUTTING US IN A VERY TIGHT FINANCIAL CONDITION MR MCDONNELL SAID AS FAR AS I'M CONCERNED THE REQUESTS THAT WE WERE MAKING WERE FOR PAYMENTS DUE US UNDER THE CONTRACT BUT IN JANUARY 1991 MR MCDONNELL CONCEDED AS THE COMPANY'S POSITION WORSENED IT DID IN FACT ASK THE PENTAGON FOR AS MUCH AS 1 BILLION IN UNUSUAL FINANCIAL AID IN THE FORM OF ADVANCE PAYMENTS ON SEVERAL OF ITS MAJOR WEAPONS CONTRACTS BUT HE ADDED THE DEFENSE DEPARTMENT DIDN'T TAKE ANY FORMAL ACTION AND IN APRIL 1991 THE COMPANY WITHDREW THE REQUEST IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY MCDONNELL DOUGLAS CLOSED AT 6025 DOWN 875 CENTS 9304230110 930423 BUSINESS BRIEFS MICROTEL FRANCHISE & DEVELOPMENT CORP WILL OPEN ITS 10TH SUPERBUDGET HOTEL MAY 5 IN SOUTH CHARLESTON WVA DOUGLAS & LOMASON CO WILL ASSEMBLE THE COMPLETE SEAT SYSTEMS FOR FORD MOTOR CO'S CDW27 WORLD CAR TO BE INTRODUCED IN 1995 TERMS WEREN'T DISCLOSED ROBERTS PHARMACEUTICAL CORP WAS GRANTED APPROVAL BY THE UK TO MARKET ITS SOMAGARD DRUG FOR THE TREATMENT OF CENTRAL PRECOCIOUS PUBERTY A CHILDHOOD DISORDER INVOLVING THE EARLY ONSET OF SEXUAL DEVELOPMENT OFFSHORE PIPELINES WAS AWARDED OFFSHORE CONSTRUCTION PROJECTS IN THE GULF OF MEXICO WEST AFRICA AND THE MIDDLE EAST WITH A TOTAL CONTRACT VALUE OF ABOUT 76 MILLION FIRST OF AMERICA BANK CORP IS ACQUIRING 14 BRANCH OFFICES FROM CITIZENS FEDERAL BANK IN A DEAL VALUED AT ABOUT 19 MILLION FIFTH THIRD BANCORP HAS REACHED A DEFINITIVE AGREEMENT TO ACQUIRE SHELBY COUNTY BANCORP IN EXCHANGE FOR 65 MILLION OF ITS COMMON STOCK 9304230109 930423 YOU'RE PRIVATIZED NOW WHAT BY DAVID BROOKS SMOLENSK RUSSIA AT 13 A JEWISH BOY HAS HIS BAR MITZVAH AND THE RABBI DECLARES HIM A MAN BUT HE'S NOT A MAN HE'S 13 RUSSIAN ENTERPRISES ALSO HAVE BAR MITZVAHS THEY CALL THEM PRIVATIZATION AUCTIONS AFTER AUCTION THE LAW DECLARES THE ENTERPRISE A PRIVATE COMPANY BUT IT'S NOT A REAL COMPANY IT'S SOMETHING ELSE THE NEWLY PRIVATIZED ENTITY DOESN'T HAVE TO VIE WITH COMPETING FIRMS BECAUSE USUALLY THERE ARE NONE IT DOESN'T HAVE TO RESPOND TO CONSUMER TASTES BECAUSE THERE ARE SUCH SHORTAGES THAT CONSUMERS SNAP UP WHATEVER IT MAKES IT DOESN'T RESPOND TO SHAREHOLDER PRESSURE BECAUSE THE SHAREHOLDERS AREN'T YET ORGANIZED IT DOESN'T WORRY ABOUT ITS STOCK PRICE DROPPING BECAUSE THERE ARE USUALLY NO STOCK MARKETS AFTER PRIVATIZATION COMES ANOTHER STEP IN THE PROCESS OF RUSSIAN REFORM IT'S AN UGLY WORD BUT LET'S CALL THIS STEP INCENTIVIZATION BECAUSE IT IS ALL ABOUT CREATING MARKET INCENTIVES THAT WILL TURN A BUNCH OF COMPANIES INTO A TRUE COMPETITIVE MARKETPLACE NO MATTER HOW THIS SUNDAY'S RUSSIAN REFERENDUM TURNS OUT INCENTIVIZATION IS RUSSIA'S FUTURE TYMOFEI RUSHEVSKY HAS BEEN MANAGING THE SAME BAKERY AND CANDY FACTORY IN SMOLENSK 250 MILES EAST OF MOSCOW FOR 25 YEARS ONE DAY THIS WINTER IT WAS PRIVATIZED AND THE STAFF NOW OWNS 61 OF THE SHARES BUT MOST EVERYTHING REMAINS AS IT WAS EVEN THE BIG MURAL OF LENIN BEHIND MR RUSHEVSKY'S DESK HE'S AN ENTHUSIASTIC OLD CODGER ON A TOUR OF THE PLANT HE BOUNDS UP TO THE OVENS AND SNATCHES LOAVES OF BREAD OFF THE RACKS AND RIPS THEM OPEN AS THE VAPORS RISE HE TAKES A DEEP WHIFF AND THEN LOOKS RAPTUROUSLY TO HEAVEN HE REPEATS THIS WITH EACH TYPE OF BREAD ABOUT A DOZEN TIMES WITH THE SAME ECSTATIC EXPRESSION HE HANDS EACH PIPINGHOT LOAF TO ME SO I CAN SHARE THE SUBLIME JOY I FIND THAT BY WRAPPING MY HANDS IN MY TIE I CAN GET AWAY WITH MERELY SECONDDEGREE BURNS THE SOVIET SYSTEM TAUGHT EXECUTIVES LIKE MR RUSHEVSKY TO BE PRODUCT NERDS THEY RECEIVED TECHNICAL NOT FINANCIAL TRAINING AND LOVE TALKING ABOUT OUTPUT RATHER THAN MANAGEMENT WHEN MR RUSHEVSKY THINKS ABOUT IMPROVING HIS COMPANY HE DOESN'T THINK OF RESTRUCTURING ESTABLISHING BRANDNAME IDENTITY OR CREATING A MARKETING DEPARTMENT ALL OF WHICH HE NEEDS TO DO RATHER HE THINKS OF NEW THINGS HE CAN MAKE EVEN IF THEY'RE OUTSIDE HIS EXPERTISE THE EXECUTIVES AT THE SMOLENSK FLAX COMBINAT POSSIBLY THE LARGEST LINEN MANUFACTURER IN THE WORLD ARE AT ABOUT THE SAME STAGE WHEN ASK THEM WHO THEIR LIKELY COMPETITORS WILL BE YOU JUST GET BLANK LOOKS IN RETURN SO THEY KEEP ON PRODUCING THE SAME OLD STALINESQUE CHINTZ DESIGNS AND THEY SELL SINCE THERE ARE SUCH SHORTAGES THEY REBUFF A SUGGESTION THAT THEY SHOULD HOLD A CONTEST TO SEE IF ANYBODY CAN COME UP WITH A DESIGN SO UGLY THAT IT WON'T SELL HERE'S A CHECKLIST THAT CAN BE USED TO MEASURE A COMPANY'S PROGRESS ON THE PATH TO MARKET INCENTIVES ARE WORKERS' WAGES TIED TO PRODUCTIVITY THIS SEEMS TO BE AMONG THE FIRST CHANGES NEWLY PRIVATIZED FIRMS MAKE DO EXECUTIVES HAVE DAILY DIARIES MR RUSHEVSKY SEEMS TO HAVE ALL THE TIME IN THE WORLD FOR VISITORS AND PULLS OUT THE BOOZE AT 1030 IN THE MORNING BUT EXECUTIVES IN OTHER COMPANIES NOW SCHEDULE THEIR DAYS DO THE EXECUTIVES WEAR WHITE SHIRTS OLD SOVIET EXECUTIVES TOOK THEIR FASHION HINTS FROM EDWARD G ROBINSON MOVIES AN EXECUTIVE AT ANALYTPRIBOR WHICH PRODUCES 70 OF RUSSIA'S GASANALYZING EQUIPMENT HIT THE ZENITH OF SOVIET FASHION WITH A BLACK SUIT A BLACK SHIRT AND A BLACK TIE AS THESE GUYS CONVERT TO NORMAL CAPITALISM THEY ARE GOING TO HAVE TO TRY TO CONVEY AN IMAGE OF HONESTY AND CLEANLINESS WHITE SHIRT NOT A KNOCK ON THE DOOR AND A TRIP TO THE GULAG BLACK SHIRT HAVE THEY THROWN OUT THE OLD DESKS IN A SOVIETSTYLE MEETING THE BOSS SITS AT HIS MASSIVE DOCUMENT AND PHONECOVERED DESK WHILE EVERYONE ELSE SITS AROUND A LITTLE STRIP OF WOOD THAT STICKS OUT INTO THE ROOM EVEN IF THERE IS A CONFERENCE TABLE THE PLACE WHERE THE BOSS SITS IS WIDER THAN THE REST THE EFFECT IS TO EMPHASIZE THE POWER OF THE DESPOT THE MANAGEMENT PHILOSOPHY OF A COMMAND ECONOMY WHEN IT BECOMES CLEAR THAT THE MANAGER IS NOT A DICTATOR BUT JUST AN EMPLOYEE OF THE SHAREHOLDERS THIS WILL CHANGE AT THE MOMENT SHARES IN PRIVATIZED COMPANIES ARE SPREAD THINLY MOSTLY AMONG STAFFS FEW PEOPLE HAVE SPENT MUCH TIME THINKING ABOUT HOW TO DEVELOP SECONDARY MARKETS AT ONE FACTORY HERE A MANAGER PUT SIGNS ON DOORS OF EMPLOYEE BATHROOMS OFFERING TO BUY THEIR SHARES FOR 5000 RUBLES EACH WITHIN A FEW DAYS HE CONTROLLED 20 OF THE COMPANY IN SMOLENSK VALERI DOBROVOLSKY IS TRYING TO DO SOMETHING ABOUT THAT HE IS CHAIRMAN OF THE REGIONAL PROPERTY FUND ONE OF THE MYRIAD GOVERNMENT BODIES THAT CLAIM TO BE IN CHARGE OF PRIVATIZATION AT FIRST SIGHT EVERYTHING ABOUT MR DOBROVOLSKY SAYS COMMUNIST THROWBACK HE WEARS THE SOUR EXPRESSION OF THE ANTIYELTSIN PARLIAMENTARIANS WHO SEEM TO STAY UP NIGHTS HATING EVERYTHING THEY CAN THINK OF BUT MR DOBROVOLSKY HAS THOUGHT FURTHEST ON HOW TO INTRODUCE MARKET INCENTIVES HE HAS ENCOURAGED THE STARTUP OF PRIVATE AND QUASIPRIVATE INVESTMENT COMPANIES THESE COMPANIES BID AGAINST EACH OTHER FOR SHARES TO ESTABLISH REAL PRICES THEY SERVE AS MUTUAL FUNDS TO HELP INDIVIDUALS SPREAD THEIR RISKS AND THEY WILL OWN LARGE BLOCKS OF SHARES AND HAVE AN INCENTIVE TO KEEP TABS ON MANAGEMENT IN MOSCOW ALPHA INVESTMENT CO CLAIMS TO OWN 20 OF THE RECENTLY PRIVATIZED BOLSHEVIK BISCUIT CO AT A RECENT SHAREHOLDER MEETING ALPHA TRIED TO GET RID OF THE MANAGEMENT THESE INVESTMENT COMPANIES ARE DESTINED TO PLAY A HUGE ROLE IN THE RUSSIAN ECONOMY IF YOU TRY TO DO BUSINESS WITH ONE YOU ARE LIKELY TO FIND YOURSELF PLAYING A GAME THAT IS COMMON IN RUSSIA FIND THE OWNER SAY YOU ARE MEETING WITH THE DIRECTOR OF THE HYPOTHETICAL RUBLESRUS INVESTMENT CO WHO OWNS RUBLESRUS YOU ASK INVESTALOT HE SAYS REFERRING TO A LARGER COMPANY WHO OWNS INVESTALOT VODKABANK WHO OWNS VODKABANK BABUSHKA JOINT VENTURE CORP CAN I MEET WITH THE OWNER OF BABUSHKA YOU CAN MEET WITH MR ROMANOV IS HE THE OWNER HE REPRESENTS THE OWNER THIS IS MATRYOSHKADOLL CAPITALISM WITH EACH COMPANY FITTING INSIDE ANOTHER IT'S NEARLY IMPOSSIBLE TO FIND OUT WHO IS THE LITTLE MAN IN THE MIDDLE CONTROLLING THE WHOLE THING BUT DON'T BE SURPRISED IF HE WAS A MINISTER IN THE GORBACHEV CABINET IN RUSSIAN HIGH FINANCE AND IN MOSCOW POLITICS GENERALLY IT IS NOT SO MUCH MARKET INCENTIVES THAT DETERMINE BEHAVIOR AS CORRUPTION INCENTIVES THE FACT IS THAT YOU CAN'T TAKE A SOCIETY THAT IS IN THE TRANSITION BETWEEN SOCIALISM AND CAPITALISM AND BY TECHNOCRATIC DESIGN OR REFERENDUM MAGIC SLAP A NORMAL AND STABLE GOVERNMENT ON TOP OF IT THE RUSSIAN GOVERNMENT THAT COMES AFTER SUNDAY'S REFERENDUM WILL SHARE THIS WITH THE GOVERNMENT THAT EXISTS NOW MARKET BEHAVIOR WILL COMPETE WITH CORRUPTION BEHAVIOR AND SOMETIMES IT WILL BE THE REFORMERS WHO ARE ALSO CORRUPT BUT THERE IS A GROWING CLASS OF RUSSIANS THAT IS BEGINNING TO SEE A PURPOSE IN HAVING AN AUCTION THAT ISN'T RIGGED A CONTRACT THAT CAN'T BE RENEGED ON A POLITICIAN WHO DOESN'T USE HIS OFFICE TO BENEFIT HIS OWN EXPORT COMPANY IN SMOLENSK LET ALONE IN FARAWAY TOWNS IN SIBERIA CONDITIONS ARE A LITTLE MORE RATIONAL IN THESE PLACES BUSINESSES ACTUALLY MAKE THINGS RATHER THAN MERELY RIDING THE BUREAUCRACY SMOLENSK IS A QUIET CIVILIZED CITY WHERE POLITICAL CONFLICT BURNS AT A LOWER FLAME IT'S THE GOVERNMENT AT THE OBLAST OR REGIONAL LEVEL THAT HAS TAKEN OVER REFORM FROM THE GORILLAS IN MOSCOW THE WORKERS AT THE PRIVATIZED SMOLENSK FIRMS CARE ABOUT THEIR PRODUCTS THEY ARE SELFCONFIDENT FLEXIBLE AND DON'T REALLY KNOW WHAT THEY ARE IN FOR JUST LIKE ANY BAR MITZVAH BOY MR BROOKS IS DEPUTY EDITORIAL PAGE EDITOR OF THE WALL STREET JOURNAL EUROPE 9304230108 930423 CREDIT RATINGS LOEWS CORP NEW YORK STANDARD & POOR'S CORP LOWERED ITS RATING ON THE SENIOR DEBT AND PREFERRED STOCK OF CNA FINANCIAL CORP CITING THE CHICAGOBASED INSURER'S CONTINUED LACKLUSTER EARNINGS AND WEAKER CAPITALIZATION AT ITS PROPERTY/CASUALTY INSURANCE OPERATIONS S&P REMOVED THE ISSUES FROM ITS CREDITWATCH LIST WHERE IT HAD PLACED THEM FOR REVIEW THE RATING AGENCY SAID IT DOWNGRADED THE DEBT TO SINGLEAPLUS FROM DOUBLEAMINUS THE DOWNGRADE AFFECTS ABOUT 400 MILLION OF DEBT OUTSTANDING AND 150 MILLION OF PREFERRED STOCK IN FEBRUARY LOEWS CORP PARENT OF THE MULTILINE INSURER SAID IT WOULD TAKE A FOURTHQUARTER CHARGE OF 567 MILLION STEMMING FROM A 15 BILLION ADDITION TO ASBESTOSRELATED LOSSES AT CNA FINANCIAL A SPOKESMAN FOR CNA SAID THE COMPANY DOESN'T COMMENT ON RATINGS ANNOUNCEMENTS 9304230107 930423 SMITHS INDUSTRIES KEEPS GENERATING CASH DESPITE A RECESSION IN THE UK BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THE HEADQUARTERS OF SMITHS INDUSTRIES PLC IS A QUIET ORDERLY ALMOST EMPTY PLACE THE GROUP'S INDUSTRIAL UNIT HAS A GRAND TOTAL OF FOUR PEOPLE INCLUDING A SECRETARY IN THE BUILDING THAT MAKES IT A PERFECT ENVIRONMENT FOR COUNTING MONEY THE COMPANY WHICH MAKES EVERYTHING FROM AIRPLANE FLIGHT INSTRUMENTS TO VACUUMCLEANER PARTS DOES SOMETHING FEW OTHER UK CONCERNS CAN CLAIM IN THE MIDDLE OF A RECESSION THE COMPANY'S THREE DIVISIONS AEROSPACE MEDICAL SYSTEMS AND INDUSTRIAL TOGETHER AVERAGED A PROFIT MARGIN OF 16 IN THE YEAR ENDED AUG 1 1992 AND FOR MORE THAN 20 YEARS IN A ROW THE COMPANY HAS INCREASED ITS DIVIDEND WE GENERATE CASH WELL SAYS CHAIRMAN ROGER HURN WE SIMPLY WON'T TOLERATE LOSS MAKERS THE RECESSION HOWEVER IS MAKING ITSELF FELT PRETAX PROFIT FOR THE COMPANY AS A WHOLE HAS CHANGED LITTLE IN THE PAST FOUR YEARS AND IS EXPECTED TO SLIDE 2 IN THE YEAR ENDING AUG 1 1993 TO ABOUT 100 MILLION 154 MILLION SMITHS INDUSTRIES ANNOUNCED WEDNESDAY A 49 INCREASE IN ITS INTERIM DIVIDEND DESPITE A 9 FALL IN PRETAX PROFIT TO 403 MILLION FOR THE FINANCIAL HALF YEAR THAT ENDED JAN 30 MR HURN SAYS THE BOARD WAS PERSUADED TO RAISE THE DIVIDEND DESPITE THE PROFIT DOWNTURN BY SMITHS'S EXCELLENT CASH FLOW PROFIT FROM SMITHS'S AEROSPACE DIVISION DECLINED AND THE COMPANY TOOK A 3 MILLION PROVISION FOR AN INVESTMENT LOSS SMITHS'S INVESTMENT PROVISION WAS LARGELY RESPONSIBLE FOR THE COMPANY'S PRETAX PROFIT BEING BELOW THE 45 MILLION EXPECTED BY THE MARKET THE REASON FOR THE STAGNATION IS EASY TO SPOT MORE THAN HALF OF THE COMPANY'S REVENUE AND ABOUT HALF ITS PROFIT COME FROM THE STRUGGLING AEROSPACE SECTOR WHILE THE COMPANY'S INDUSTRIAL AND MEDICAL SYSTEMS UNITS SHOW SIGNS OF SOLID GROWTH PRETAX PROFIT FOR AEROSPACE SLID 20 TO 485 MILLION LAST YEAR AND ANALYSTS SAY IT COULD GET EVEN WORSE WHILE IT'S NOT AS WELL KNOWN AS SUCH COMPANIES AS BRITISH AEROSPACE PLC OR ROLLSROYCE PLC SMITHS IS A MAJOR PLAYER IN NEARLY EVERY ASPECT OF THE AEROSPACE INDUSTRY SMITHS'S AVIONICS EQUIPMENT FLIES ON EVERY PLANE MADE BY BOEING CO AND MCDONNELL DOUGLAS CORP ON EVERY UK MILITARY PLANE AND ON NO FEWER THAN 31 US MILITARY AIRCRAFT FROM THE STEALTH BOMBER TO THE APACHE ATTACK HELICOPTER SMITHS WHICH HAS SEVERAL MAJOR PLANTS IN THE US ALSO SUPPLIES THE NAVIGATION SYSTEMS ABOARD AMERICAN TANKS AND SUBMARINES THE COMPANY SAYS IT BENEFITS FROM THE TREND AMONG THE WORLD'S ARMED FORCES TO MODERNIZE OLD FLEETS RATHER THAN BUY ENTIRELY NEW AIRCRAFT SMITHS SUPPLIES THE LATEST AVIONICS EQUIPMENT TO AGING MILITARY AIRCRAFT BUT COMPANY OFFICIALS CONCEDE IT IS A STRUGGLE TO MAINTAIN HIGH PROFIT MARGINS IN THE AEROSPACE DIVISION PROFIT MARGINS THERE FELL FROM 14 OF REVENUE TO 125 FOR THE YEAR ENDED AUG 1 1992 AND COMPANY OFFICIALS SAY THEY ARE UNDER EVEN GREATER PRESSURE THIS YEAR IN PARTICULAR BOEING'S MOVE TO CUT PRODUCTION LEVELS ON THE 737 JETLINER CUTS INTO A MAJOR SOURCE OF BUSINESS FOR SMITHS GIVEN ITS PAST RECORD SMITHS WOULD SEEM TO HAVE A SIMPLE ANSWER READY FOR THE PROBLEM OF SHRINKING PROFITS IN AEROSPACE HISTORICALLY EVERY TIME ONE OF SMITHS'S OPERATIONS HASN'T EARNED DOUBLEDIGIT PROFIT MARGINS SMITHS HAS SOLD IT THE COMPANY TOOK THREE YEARS TO BUILD A 5 MILLION AIRCRAFT IGNITIONS FACTORY NEAR LONDON THAT FAILED TO OPERATE PROFITABLY WHEN OPENED IN 1989 IT WAS SOLD BY JUNE 1991 IT HASN'T COME TO THAT STAGE YET FOR THE AEROSPACE DIVISION BUT IN THE PAST THROUGH A COMBINATION OF LUCK AND FORESIGHT SMITHS HAS CONSISTENTLY MOVED OUT OF INDUSTRIES HEADED FOR A CRASH AND INTO THOSE ON THE UPSWING IN THE 1970S THE COMPANY WOUND DOWN ITS DEPENDENCE ON THE COMPETITIVE CLOCKMAKING INDUSTRY TO FOCUS ON ITS LUCRATIVE MOTOR PARTS BUSINESS THEN IN THE EARLY 1980S THE COMPANY ABANDONED AUTO PARTS TO FOCUS ON AIRPLANE PARTS JUST IN TIME TO ESCAPE THE JAPANESE AUTO CHALLENGE AND TO ENJOY THE AEROSPACE BOOM SUCH DEFT MOVES WIN HYPERBOLIC PRAISE ROGER HURN WALKS ON WATER SAYS ONE LONDON ANALYST ARGUABLY IT SMITHS IS THE BEST MANAGED AEROSPACE COMPANY IN BRITAIN SAYS PETE DEIGHTON AN ANALYST AT SMITH NEW COURT SECURITIES LTD THE OTHERS DON'T STAND IN THE SAME LEAGUE MAINTAINING THAT DOUBLEDIGIT PROFIT MARGIN IS A HELL OF A CHALLENGE SAYS NORMAN BARBER CHAIRMAN OF SMITHS'S AEROSPACE ACTIVITIES I HAVE STOPPED REPORTING TO MY COLLEAGUES NEW REDUNDANCIES BECAUSE THEY ARE A WAY OF LIFE DURING THE PAST 2 1/2 YEARS SMITHS HAS DISMISSED NEARLY 30 OF ITS AEROSPACE WORK FORCE IN BOTH THE US AND UK TO 6000 CURRENTLY FROM 8500 IN JULY 1990 BUT SMITHS ISN'T ABOUT TO SELL THE AEROSPACE UNIT DESPITE ITS WOES INSTEAD THE COMPANY IS PLACING HUGE BETS ON THE INDUSTRY RESEARCH AND DEVELOPMENT SPENDING FOR THE COMPANY NOT INCLUDING GOVERNMENT CONTRIBUTIONS ROSE 52 IN 1992 TO 459 MILLION ANALYSTS EXPECT THAT FIGURE TO CLIMB AS MAJOR RESEARCH PROJECTS MATURE OVERALL SMITHS SPENDS ABOUT 7 OF REVENUE ON RESEARCH AND DEVELOPMENT WE HAVEN'T REDUCED BY ONE JOT OUR COMMITMENT TO THE FUTURE MR HURN SAYS ABOUT 20 MILLION A YEAR IS GOING TOWARD DEVELOPING A NEW GENERATION OF FUEL AND ELECTRICAL SYSTEM MONITORS FOR THE BOEING 777 THE SEATTLE COMPANY'S LATEST AIRLINER THAT IS EXPECTED TO GO INTO SERVICE IN 1995 OUR ASSESSMENT WAS THAT FAR AND AWAY IT WAS THE MOST IMPORTANT AIRCRAFT PROJECT OF THE 1990S SAYS MR HURN AND MR HURN SAYS HE AND HIS COLLEAGUES ARE LOBBYING HARD FOR A LARGE PIECE OF ANY FUTURE VERSION OF THE BOEING 737 THE BESTSELLING JETLINER AT THE SAME TIME SMITHS IS CONFIDENT OF THE FUTURE OF ITS MILITARY BUSINESS WITH A POSITION ON EVERY UK MILITARY AIRCRAFT AND NEARLY ALL US PLANES SMITHS SAYS IT DOESN'T RELY ON ANY SINGLE DEFENSE PROJECT AND CAN COUNT ON A FUTURE PRESENCE THE FACT IS THAT THE US DEFENSE BUDGET IS HUGE AND US EXPORTS OF DEFENSE PROGRAMS ARE HUGE SAYS MR HURN AND THERE'S NO EVIDENCE THAT THE US IS GOING TO STOP DEFENDING ITSELF WITH THE MOST MODERN EQUIPMENT IT CAN BUY BUT EVEN THE THOUGHT OF MILITARY CUTBACKS DOESN'T SEEM TO PHASE MANAGEMENT SMITHS SAYS ITS ACQUISITIONS IN THE MEDICAL AND INDUSTRIAL SECTOR PROVE IT IS ONCE AGAIN WELLPOSITIONED SHOULD ITS CURRENT CASHCOW COLLAPSE IF THERE IS A PEACE DIVIDEND IN GROSS DOMESTIC PRODUCT TERMS IT TENDS TO GO TO MEDICAL CARE MR HURN SAYS AND THAT'S RIGHT UP OUR ALLEY IN THE PAST YEAR THE COMPANY HAS BEEN FOCUSING ITS EXPANSION ON THE HEALTHCARE SECTOR AND LIGHT INDUSTRY SMITHS HAS BOUGHT HG WALLAGE LTD A UK MEDICAL DEVICE MAKER INTERTECH RESOURCES INC A US MAKER OF DISPOSABLE MEDICAL FILTERS AND VENTAXIA A UNIT OF APV PLC THAT MAKES VENTILATION EQUIPMENT AND HAND DRIERS 9304230106 930423 TECHNOLOGY JOHNSON & JOHNSON'S ORTHO DIAGNOSTIC SUES ABBOTT ON BLOOD TESTS NEW YORK ORTHO DIAGNOSTIC SYSTEMS INC ACCUSED ABBOTT LABORATORIES OF TRYING TO MONOPOLIZE THE MARKET FOR TESTS USED BY BLOOD BANKS TO SCREEN BLOOD SUPPLIES FOR DISEASES SUCH AS AIDS AND HEPATITIS ORTHO A UNIT OF DRUG AND HEALTHCARE PRODUCTS MAKER JOHNSON & JOHNSON MADE THE ALLEGATIONS IN A LAWSUIT FILED IN FEDERAL COURT HERE THE LAWSUIT SEEKS TRIPLE DAMAGES UNDER FEDERAL ANTITRUST LAW AS WELL AS AN INJUNCTION PROHIBITING ABBOTT FROM ATTEMPTING TO MONOPOLIZE THE MARKET ACCORDING TO THE LAWSUIT THE MARKET FOR BLOOD SCREENING TESTS IS ABOUT 100 MILLION A SPOKESWOMAN FOR ABBOTT WHICH IS BASED IN ABBOTT PARK ILL DECLINED TO COMMENT ON THE LAWSUIT SAYING THE COMPANY DOESN'T RESPOND TO QUESTIONS CONCERNING PENDING LITIGATION ORTHO'S LAWSUIT ALSO SEEKS TO UNDO A CONTRACT THAT ABBOTT RECENTLY REACHED WITH THE COUNCIL OF COMMUNITY BLOOD CENTERS A NATIONAL ORGANIZATION WHOSE MEMBERS COLLECT AND TEST 35 OF DONATED BLOOD ORTHO SAYS THE CONTRACT WHICH IS SCHEDULED TO GO INTO EFFECT ON JUNE 1 WILL PREVENT IT FROM SELLING TO MOST MEMBERS OF THE BLOOD COUNCIL FOR THREE YEARS ACCORDING TO THE LAWSUIT ABBOTT IS THE ONLY COMPANY THAT MAKES ALL FIVE BLOOD TESTS USED TO SCREEN THE NATION'S BLOOD SUPPLY ABBOTT CONTROLS 70 OF THE MARKET FOR FOUR OF THOSE TESTS AND TWO OF ITS TESTS ARE THE INDUSTRY STANDARD ACCORDING TO THE LAWSUIT ORTHO SAID ABBOTT PLANS TO EXTEND ITS MONOPOLY BY BUNDLING ITS TWO MOST POPULAR TESTS WITH THE OTHER THREE IT MAKES AND CHARGING A PENALTY TO BLOOD BANKS THAT BUY THE OTHER TESTS FROM ANOTHER SUPPLIER 9304230105 930423 ANGLO AMERICAN POSTS 35 INCREASE IN NET FOR FIRST QUARTER SPECIAL TO THE WALL STREET JOURNAL GOLD DIVISION CHAIRMAN CLEM SUNTER SAID AS HE DID LAST QUARTER SELLING GOLD FORWARD TO HEDGE AGAINST FUTURE PRICE DECLINES BENEFITED THE GROUP MR SUNTER SAID ANGLO AMERICAN WOULD CONTINUE TO HEDGE EVEN IF THE GOLD PRICE CONTINUED TO INCREASE THIS WOULD BE A GOOD TIME TO TAKE ADVANTAGE OF A HIGHER SPOT PRICE HE SAID ANGLO AMERICAN HAS NO PLANS TO INCREASE THE AMOUNT OF GOLD IT HEDGES WHICH IS CURRENTLY ABOUT ONE THIRD OF PRODUCTION MR SUNTER SAID THE OFFICIAL SAID HE IS BULLISH ABOUT THE GOLD PRICE IN THE LONGTERM AS HE EXPECTS JEWELRY DEMAND TO INCREASE ESPECIALLY IN THE FAR EAST HE ESTIMATES THERE IS SCOPE FOR THE GOLD PRICE TO MOVE BACK INTO A 350370 AN OUNCE RANGE IN THE NEXT SIX MONTHS ANGLO AMERICAN PAID OUT 327 MILLION RAND IN PROFITSHARING BONUSES DURING THE QUARTER WHICH WAS 30 HIGHER THAN THE 252 MILLION RAND PAID OUT IN THE FOURTH QUARTER OF 1992 9304230104 930423 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN IN A BOLD BID TO AID ITS AILING ECONOMY SWEDEN UNVEILED A PROGRAM THAT REPRESENTS THE BIGGEST ASSAULT ON THE LAVISH CRADLETOGRAVE WELFARE SYSTEM THE PROPOSALS CAME IN A REVISED BUDGET BILL FOR THE FISCAL YEAR STARTING JULY 1 PARLIAMENT IS EXPECTED TO APPROVE THE PLAN TO FREEZE GOVERNMENT OUTLAYS AT CURRENT LEVELS AND MAKE SPENDING CUTS OF 81 BILLION SWEDISH KRONOR 1094 BILLION IN THE FIVE YEARS THROUGH 1998 THE CUTS AND AN EQUAL AMOUNT OF AUSTERITY MEASURES IN THE PAST 18 MONTHS WOULD TOTAL 10 OF GROSS NATIONAL PRODUCT THE SWEEPING REDUCTIONS WOULD AFFECT ALMOST ALL SWEDES TOUCHING PROGRAMS RANGING FROM PENSIONS AND MATERNITY LEAVE TO UNEMPLOYMENT AND HEALTHCARE BENEFITS THE GOVERNMENT SAID SLASHING SPENDING IS ESSENTIAL TO SLOW RAPID INCREASES IN THE NATIONAL DEBT AND BUDGET DEFICIT WHICH ALMOST TRIPLED TO 13 OF GNP IN THE PAST THREE YEARS AN ECONOMIC OVERHAUL BEGUN IN LATE 1991 TO CUT TAXES FAVOR BUSINESS AND BOOST COMPETITION IN STATEDOMINATED SERVICES HAS BEEN CRIMPED BY THE WORST RECESSION IN SWEDEN SINCE THE 1930S THE NUMBER OF INTERNATIONAL TOURISTS IS EXPECTED TO REACH 935 MILLION BY THE YEAR 2010 MORE THAN DOUBLE THE 456 MILLION PEOPLE WHO TRAVELED ABROAD LAST YEAR THE WORLD TOURISM ORGANIZATION SAID IN PARIS GROWTH IN THE SECTOR HAS BEEN EXPLOSIVE SURGING FROM 25 MILLION IN 1950 IN PREDICTING THIS TREND WILL CONTINUE IN THE NEXT TWO DECADES THE TRAVEL GROUP CITED EARLIER RETIREMENTS IN MANY COUNTRIES EASED VISA RESTRICTIONS AND WOMEN'S INCREASED EARNING POWER LAST YEAR THE TOP DESTINATIONS ATTRACTING 40 OF ALL FOREIGN TRAVELERS WERE FRANCE THE US SPAIN ITALY AND HUNGARY THE ORGANIZATION SAID THREE CHINESE CITIES WANT FOREIGN CONSUMER PRODUCTS TO SUPPLY A THIRD OF THEIR RETAIL MARKETS BY 1996 TO ACCOMPLISH THIS BEIJING TIANJIN AND SHANGHAI WILL TRY TO ATTRACT MORE FOREIGN PARTNERS FOR RETAIL OUTLETS AND DISTRIBUTION FIRMS FOREIGN PRODUCTS WERE SCARCE UNTIL LAST YEAR WHEN IMPORT BARRIERS WERE EASED AND FOREIGNERS ALLOWED TO SET UP STORES OR FORM VENTURES MEANWHILE BEIJING PLANS TO DISMANTLE HUNDREDS OF ECONOMIC DEVELOPMENT ZONES AND CLEAR ONLY THOSE WITH FOREIGN INVESTMENT POTENTIAL OF 2000 ZONES FORMED BY LOCAL GOVERNMENTS LAST YEAR ONLY 117 GOT FEDERAL OR PROVINCIAL APPROVAL OPTIMISM AMONG AUSTRALIAN BUSINESSES ABOUT PROSPECTS FOR THE CURRENT QUARTER IS THE STRONGEST IN FOUR YEARS IN A DUN & BRADSTREET AUSTRALIA PTY SURVEY MANUFACTURERS WHOLESALERS AND RETAILERS EXPECTED ORDERS SALES AND EARNINGS TO RISE SHARPLY FROM THE 1992 SECOND QUARTER THE SENTIMENT SIGNALS A STRONGER PACE FOR RECOVERY FROM RECESSION YET ALMOST HALF OF RETAILERS SAW HIGHER SELLING PRICES WHICH COULD SPUR INFLATION AND THE EMPLOYMENT OUTLOOK IS WEAK AS JOB CUTS EXCEED NEW HIRES SPAIN'S ECONOMY WILL CONTINUE TO BE SLUGGISH AND UNEMPLOYMENT WILL RISE THIS YEAR THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT SAID BUT THE FORUM OF RICH INDUSTRIAL NATIONS URGED SPAIN TO PERSIST IN TRYING TO REIN IN SPENDING AND LIBERALIZE ITS RESTRICTIVE LABOR MARKET AND SERVICE SECTOR TO ALLOW GROWTH NEXT YEAR SPAIN'S ECONOMY GREW 12 LAST YEAR THE OECD EXPECTS A MERE 07 PACE THIS YEAR THEN AN UPTURN TO A POTENTIAL 23 NEXT YEAR IF PRODUCERS AND WORKERS LIMIT PRICE AND PAY BOOSTS THE GROUP SAID THIS YEAR'S AUSTERITY MEASURES CAME TOO LATE TO HELP BUSINESS CONFIDENCE THAILAND'S ECONOMY DIDN'T GROW AS FAST LAST YEAR AS THE GOVERNMENT INITIALLY ESTIMATED BUT THE PACE WAS STILL RAPID GROSS DOMESTIC PRODUCT EXPANDED AN INFLATIONADJUSTED 74 REVISED FROM A PROVISIONAL 75 AFTER ADJUSTING TRADE DATA EXPORTS GREW 13 FAR SHORT OF THE 16 ESTIMATE IMPORTS ROSE 65 OFF THE INITIAL 89 IN 1991 WHEN GDP SURGED 82 EXPORTS GREW 24 AND IMPORTS 15 THIS YEAR GDP IS EXPECTED TO EXPAND 8 JOBLESSNESS IN BRITAIN FELL UNEXPECTEDLY IN MARCH FOR THE SECOND MONTH IN A ROW PROVIDING MORE EVIDENCE OF EMERGENCE FROM RECESSION AND REDUCING FOR NOW THE NEED FOR AN INTERESTRATE CUT INDEED RESPONDING TO GERMAN RATE REDUCTIONS BRITAIN SAID ITS BASE LENDING RATE NOW AT A 16YEAR LOW OF 6 IS APPROPRIATE TO FIGHT INFLATION AND PROVIDE FOR A SUSTAINED ECONOMIC RECOVERY LAST MONTH'S UNEMPLOYMENT DECLINE OF A SEASONALLY ADJUSTED 26000 TO 2940800 WHEN A 25000 RISE HAD BEEN EXPECTED PUSHED THE JOBLESS RATE DOWN TO 105 FROM 106 IN FEBRUARY WHEN THE REVISED DROP WAS 25500 THE NUMBER OF UNEMPLOYED PEOPLE HADN'T DECLINED FOR TWO CONSECUTIVE QUARTERS SINCE APRIL 1990 BUT ECONOMISTS QUESTIONED WHETHER THE SHARP TURNAROUND IS SUSTAINABLE IN THE SIX MONTHS THROUGH JANUARY JOBLESSNESS CLIMBED AN AVERAGE OF 39000 A MONTH HONG KONG'S SECURITIES AND FUTURES COMMISSION LIFTED A BAN ON ADVERTISING INVESTMENT PRODUCTS IN ELECTRONIC MEDIA AND THEATERS BEIJING'S OFFICE OCCUPANCY RATE WHICH AVERAGED 60 IN 1990 AND 1991 AFTER THE 1989 TIANANMEN SQUARE KILLINGS TOPPED 95 LAST YEAR LONDON PROPERTY CONSULTANTS BROOKE HILLIER PARKER ESTIMATED CITING RENEWED FOREIGNINVESTOR CONFIDENCE IN CHINA'S REFORMS 9304230103 930423 HOW POLL WAS CONDUCTED THE WALL STREET JOURNAL/NBC NEWS POLL WAS BASED ON NATIONWIDE TELEPHONE INTERVIEWS OF 1004 ADULTS CONDUCTED SATURDAY THROUGH TUESDAY BY THE POLLING ORGANIZATIONS OF PETER HART AND ROBERT TEETER THE SAMPLE WAS DRAWN FROM 263 RANDOMLY SELECTED GEOGRAPHIC POINTS IN THE CONTINENTAL US EACH REGION WAS REPRESENTED IN PROPORTION TO ITS POPULATION HOUSEHOLDS WERE SELECTED BY A METHOD THAT GAVE ALL PHONE NUMBERS LISTED AND UNLISTED AN EQUAL CHANCE OF BEING INCLUDED ONE ADULT 18 YEARS OR OLDER WAS SELECTED FROM EACH HOUSEHOLD BY A PROCEDURE TO PROVIDE THE CORRECT NUMBER OF MALE AND FEMALE RESPONDENTS THE RESULTS OF THE SURVEY WERE MINIMALLY WEIGHTED BY INCOME TO ENSURE THAT THE POLL ACCURATELY REFLECTS REGISTERED VOTERS NATIONWIDE CHANCES ARE 19 OF 20 THAT IF ALL ADULTS WITH TELEPHONES IN THE US HAD BEEN SURVEYED THE FINDINGS WOULD DIFFER FROM THESE POLL RESULTS BY NO MORE THAN 32 PERCENTAGE POINTS IN EITHER DIRECTION A LIMITED NUMBER OF QUESTIONS WERE ASKED OF HALF THE SAMPLE FOR THESE THE MARGIN OF ERROR IS 45 PERCENTAGE POINTS THE MARGIN FOR ANY SUBGROUP WOULD DEPEND ON THE SIZE OF THAT GROUP AN ADDITIONAL NUMBER OF ROSS PEROT VOTERS WERE INTERVIEWED TO ALLOW FOR A SEPARATE STATISTICALLY MEANINGFUL ANALYSIS OF THIS GROUP THESE SUPPLEMENTARY INTERVIEWS WEREN'T INCLUDED IN THE RESULTS REPORTED FOR THE NATIONWIDE SAMPLE ALL TOLD 310 PEROT VOTERS WERE INTERVIEWED THE MARGIN OF ERROR FOR THIS GROUP IS 57 PERCENTAGE POINTS SEE RELATED ARTICLE ROSS'S ARMY PEROT VOTERS COVETED BY BOTH MAJOR PARTIES HOLD OUT FOR GOALS THEY DEMAND DEFICIT BE CUT YET GRIPE AS GOP CURBS CLINTON SPENDING PLANS THE KEY TO ELECTORAL SUCCESS WSJ APRIL 23 1993 9304230102 930423 TECHNOLOGY & HEALTH EPA IS DEVELOPING RULE WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY WILL REQUIRE TECHNICIANS WHO SERVICE AIR CONDITIONERS AND REFRIGERATORS TO RECEIVE SPECIAL TRAINING ON HOW TO RECOVER OR RECYCLE CHLOROFLUOROCARBONS SUCH TECHNICIANS WILL HAVE TO RECEIVE CERTIFICATION FROM EPAAPPROVED PRIVATE ORGANIZATIONS SUCH AS COMPANIES OR TRADE GROUPS THAT THEY CAN HANDLE THE CHEMICALS WHICH ARE THOUGHT TO DEPLETE OZONE IN THE UPPER ATMOSPHERE DURING THE BUSH ADMINISTRATION THE WHITE HOUSE BUDGET OFFICE OPPOSED THE CERTIFICATION REQUIREMENT ON THE GROUNDS THAT IT WOULD BE CUMBERSOME BUT THE CLINTON WHITE HOUSE BUDGET OFFICE IS EXPECTED TO APPROVE THE CERTIFICATION REQUIREMENT THE FINAL RULE ALSO WILL REQUIRE BUSINESSES AND INDIVIDUALS WHO OWN AIR CONDITIONERS OR REFRIGERATORS WITH SIGNIFICANT LEAKS TO GET THEM REPAIRED OR RISK BEING FINED THE EPA IS EXPECTED TO ANNOUNCE THE RULE TODAY SEPARATELY THE EPA IS EXPECTED TO ISSUE POSSIBLY AS EARLY AS TODAY A LIST OF CHEMICALS THAT CAN BE USED TO REPLACE CHLOROFLUOROCARBONS IN REFRIGERATION EQUIPMENT FIRE EXTINGUISHERS AND OTHER SUBSTANCES UNDER AN INTERNATIONAL AGREEMENT THE US MUST END CHLOROFLUOROCARBON PRODUCTION BY THE END OF 1995 SEE RELATED ARTICLE TECHNOLOGY & HEALTH OZONE PROBLEM IN ATMOSPHERE BECOMES WORSE WSJ APRIL 23 1993 9304230101 930423 THE WALL STREET JOURNAL / NBC NEWS POLL WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RONALD G SHAFER OPTIMISM FADES ABOUT THE ECONOMY AND CLINTON'S ECONOMIC PLAN FOR THE FIRST TIME SINCE THE ELECTION A PLURALITY OF AMERICANS SURVEYED IN A NEW WALL STREET JOURNAL/NBC NEWS POLL SAY THE NATION IS ON THE WRONG TRACK BY 44 TO 37 ONLY A THIRD OF THOSE POLLED EXPECT THE ECONOMY TO GET BETTER OVER THE NEXT YEAR AT THE START OF 1993 HALF WERE OPTIMISTIC ANOTHER 21 EXPECT THE ECONOMY TO WORSEN OVER THE NEXT YEAR UP FROM 9 IN JANUARY SOME ECONOMISTS WHO HAD EXPECTED A REPORT NEXT THURSDAY OF A 3 ANNUALGROWTH RATE IN THE FIRST QUARTER NOW THINK IT WILL BE CLOSER TO 25 WITH LITTLE IMPROVEMENT IN SIGHT HALF OF THOSE POLLED STILL FAVOR CLINTON'S PLAN A THIRD OPPOSE IT BUT ONLY 38 SAY THE PLAN WILL CUT THE DEFICIT DOWN FROM 55 IN MARCH WHILE CLINTON CAMPAIGNED ON ECONOMIC ISSUES TODAY A MAJORITY SAY HE HAS CHANGED HIS FOCUS SAY JOURNAL/NBC POLLSTERS ROBERT TEETER AND PETER HART REPUBLICANS WILL PRESS FOR MORE DETAILS ON CLINTON'S TAX INCREASES CLAIMING THAT THE TREASURY UNDERSTATES THE IMPACT ON THE MIDDLE CLASS CLINTON ZEROS IN ON HOW TO PAY FOR HIS COMING HEALTHCARE OVERHAUL DESPITE UNION OPPOSITION A TAX ON EMPLOYEE HEALTH BENEFITS APPEARS INCREASINGLY LIKELY TAXING CORPORATIONS ON HEALTH BENEFITS THEY PROVIDE IS ALSO HIGH ON THE LIST OF 20 OPTIONS A MOVE OPPOSED BY 61 OF AMERICANS IN THE NEW POLL BUT 75 SUPPORT THE LIKELY FINANCING FROM HIGHER TAXES ON CIGARETTES AND ALCOHOL WHILE A VALUEADDED TAX IS A LONGSHOT THE OPTION LIST INCLUDES A 300BILLIONAYEAR VERSION THAT COULD REPLACE EMPLOYERPAID PREMIUMS A 50 BILLION VAT WOULD EXEMPT FOOD AND HOUSING A TYPE OF SALES TAX BACKED 51 TO 44 IN THE POLL ANOTHER OPTION IS TAXING INSURERS AND HEALTH PROVIDERS WHICH IS OPPOSED BY A SURPRISING 60 OF THOSE POLLED DOLE GETS A LEG UP AMONG POTENTIAL 1996 GOP CHALLENGERS TO CLINTON A STUNNING 53 OF THE PUBLIC SEES THE GOP SENATE LEADER AS THE REPUBLICANS' PRINCIPAL VOICE AS THEY FIGHT CLINTON'S STIMULUS PLANS THAT DWARFS 9 WHO CITE QUAYLE 7 FOR KEMP AND 3 FOR BUCHANAN ONLY 2 CITE TEXAS SEN GRAMM A LIKELY 1996 CANDIDATE DOLE IS THE GOP'S TWOTON GORILLA SAY POLLSTERS TEETER AND HART BUT DOLE NOW IS CAUGHT BETWEEN DEMANDS OF CONSERVATIVES LIKE GRAMM AND SOME GOP MODERATES WHO ARE UPSET BY HIS NOCOMPROMISE STAND ON THE STIMULUS DOLE HAS TIES TO KAY BAILEY HUTCHISON WHO COULD STEAL ATTENTION FROM GRAMM IF SHE WINS TEXAS' SPECIAL SENATE ELECTION MAY 1 AND DOLE'S TOUGH STANCE AGAINST CLINTON'S PLAN DOESN'T HELP THE GOP WITH VOTERS SOME 60 OF AMERICANS POLLED THINK THE GOP IS OPPOSING CLINTON'S ECONOMIC PLAN FOR POLITICAL REASONS AND BY 52 TO 29 THEY THINK CLINTON IS MORE SERIOUS THAN THE GOP ABOUT DEFICIT CUTTING SORRY GEORGE COMPARED TO THE WAY BUSH HANDLED THE JOB OF PRESIDENT AMERICANS BY 54 TO 28 THINK CLINTON REPRESENTS A CHANGE FOR THE BETTER BUT IN THE NEW POLL THE SHARE OF THE PUBLIC WHO FEELS POSITIVE ABOUT HILLARY RODHAM CLINTON EDGES AHEAD OF HER HUSBAND'S 53 TO 52 MOMENTUM BUILDS WITH THE PUBLIC TO OVERHAUL SPECIALINTERESTFUNDED POLITICAL CAMPAIGNS THE NEW JOURNAL/NBC POLL SHOWS THAT AMERICANS BY 53 TO 39 NOW FAVOR PUBLIC FUNDING OF CONGRESSIONAL CAMPAIGNS IF IT IS FINANCED BY ELIMINATING THE TAX DEDUCTION FOR LOBBYING WHICH CLINTON IS EXPECTED TO PROPOSE NEXT WEEK SUPPORT EDGES UP FOR THE PROPOSED TRADE AGREEMENT WITH MEXICO AND CANADA FOR THE FIRST TIME IN THE POLL A PLURALITY OF AMERICANS 27 TO 25 FAVORS THE PACT THOUGH 44 HAVEN'T HEARD ENOUGH TO GIVE AN OPINION BUSINESS BACKERS PLAN A 2 MILLION CAMPAIGN FOR THE AGREEMENT BUT PEROT STEPS UPS HIS ATTACKS ON THE PACT CLINTON LEANS TOWARD NOT OPPOSING INTERNATIONAL EFFORTS TO HELP PAY OFF VIETNAM'S IMF DEBT WHICH WOULD WRECK WHAT IS LEFT OF THE US EMBARGO TO FORCE COOPERATION ON POW ISSUES ONE AIM WOULD BE TO ENTICE MORE HELP FROM HANOI TWOTHIRDS OF AMERICANS POLLED BELIEVE THAT US SOLDIERS ARE STILL BEING HELD IN SOUTHEAST ASIA CLINTON'S CALL FOR STILL MORE AID TO RUSSIA SURPRISES EVEN HIS OWN PEOPLE WHITE HOUSE BUDGET OFFICIALS HAD TO BE SCRAPED OFF THE CEILING WHEN AN ADDITIONAL 18 BILLION PACKAGE WAS UNVEILED IN TOKYO LAST WEEK SAYS ONE SENIOR OFFICIAL EQUALLY SURPRISED CONGRESSIONAL DEMOCRATS WORRY THE AID BILL WILL COLLIDE WITH COSTLY HEALTHCARE LEGISLATION AND FOREIGNAID BILLS IN THE NEW POLL 40 OF AMERICANS NOW SAY THEY FAVOR INCREASED AID TO RUSSIA UP FROM 33 LAST MONTH BUT 52 STILL OPPOSE SUCH AID AND 66 THINK THE MONEY WOULD BE BETTER SPENT AT HOME CRITICS COMPLAIN THAT CLINTON'S ATTENTION TO RUSSIA DIVERTS HIS FOCUS FROM ECONOMIC ISSUES BY 48 TO 36 AMERICANS SAY IT IS IMPORTANT THAT THE US HELP YELTSIN REMAIN RUSSIA'S PRESIDENT MINOR MEMOS IN THE NEW POLL 37 SAY THE KILLING IN BOSNIA IS COMPARABLE TO THE NAZI HOLOCAUST WHILE 44 DISAGREE THE SHARE OF AMERICANS WHO SAY ABORTION SHOULD BE ILLEGAL RISES TO 35 FROM 27 LAST MAY WHILE 58 THINK IT SHOULDN'T BE ILLEGAL AMERICANS BY 46 TO 41 OPPOSE RAISING FEES PAID BY PRIVATE COMPANIES FOR TIMBER MINING AND GRAZING RIGHTS ON US LANDS 9304230100 930423 BUSINESS BRIEF CALIFORNIA FEDERAL BANK FIRSTQUARTER NET FELL 20 LOANLOSS PROVISION LOWER CALIFORNIA FEDERAL BANK FORMERLY CALFED INC POSTED A 20 DROP IN FIRSTQUARTER NET INCOME TO 105 MILLION OR 40 CENTS A SHARE FROM 131 MILLION OR 255 A SHARE A YEAR EARLIER THE PERSHARE RESULTS REFLECT A 1FOR5 REVERSE STOCK SPLIT EFFECTIVE FEB 28 IN THE YEAREARLIER PERIOD THE LOS ANGELES COMPANY POSTED A LOSS FROM CONTINUING OPERATIONS OF 29 MILLION OR 57 CENTS A SHARE A ONETIME NET GAIN OF 16 MILLION FROM THE SALE OF A SUBSTANTIAL PORTION OF THE BANK'S TRUSTMANAGEMENT BUSINESS GAVE THE COMPANY A PROFIT LAST YEAR THE COMPANY'S PROVISION FOR LOAN AND REAL ESTATE LOSSES IN THE QUARTER WAS 329 MILLION COMPARED WITH 408 MILLION A YEAR EARLIER CALIFORNIA FEDERAL SAID IT HAS MET REQUIREMENTS OF ITS REGULATORY CAPITAL PLAN AND RESTRICTIONS IMPOSED UNDER THE PLAN HAVE BEEN LIFTED 9304230099 930423 BUSINESS BRIEF AMERICAN BRANDS INC COMPANY POSTS 81 DROP IN FIRSTQUARTER NET INCOME AMERICAN BRANDS INC OLD GREENWICH CONN REPORTED AN 81 DROP IN FIRSTQUARTER PROFIT REFLECTING A CHARGE OF 201 MILLION OR 99 CENTS A SHARE FOR CHANGES IN ACCOUNTING FOR POSTRETIREMENT BENEFITS THE TOBACCO AND SPIRITS COMPANY POSTED NET INCOME OF 461 MILLION OR 23 CENTS A SHARE COMPARED WITH 2452 MILLION OR 114 A SHARE IN THE YEARAGO QUARTER REVENUE DROPPED 3 TO 374 BILLION THE LATEST FIRSTQUARTER EARNINGS WERE ALSO NEGATIVELY AFFECTED BY FLUCTUATIONS IN EXCHANGE RATES FOR FOREIGN CURRENCIES PRINCIPALLY THE BRITISH POUND COSTING THE COMPANY 21 MILLION IN PROFIT THE COMPANY SAID COMPETITION IN THE US TOBACCO MARKET WOULD RESULT IN LOWER CONSOLIDATED FIRSTHALF PROFIT 9304230098 930423 BUSINESS BRIEF FIRST USA INC FINANCIAL SERVICES COMPANY HAS RECORD 3RDPERIOD NET FIRST USA INC SAID STRONG GROWTH IN THE NUMBER OF NEW CREDITCARD ACCOUNTS ALONG WITH GAINS IN THE VOLUME OF CREDITCARD LOANS AND NET INTEREST MARGINS HELPED IT POST RECORD NET INCOME FOR ITS FISCAL THIRD QUARTER ENDED MARCH 31 THE FINANCIAL SERVICES COMPANY REPORTED NET OF 103 MILLION OR 38 CENTS A SHARE FOR THE QUARTER NEARLY DOUBLE THE YEAREARLIER NET OF 52 MILLION OR 19 CENTS A SHARE FOR THE NINE MONTHS ENDED MARCH 31 THE DALLAS COMPANY REPORTED NET INCOME OF 262 MILLION OR 99 CENTS A SHARE MORE THAN DOUBLE THE YEAREARLIER NET OF 11 MILLION OR 37 CENTS A SHARE AVERAGE MANAGED CREDITCARD LOANS FOR THE QUARTER ROSE NEARLY 34 TO 291 BILLION FROM 218 BILLION AND THE COMPANY OPENED 248618 NEW ACCOUNTS NET ACCOUNT INCREASE WAS NOT AVAILABLE CREDITCARD CHARGE VOLUME INCREASED 40 TO 1 BILLION FROM 7454 MILLION 9304230097 930423 DID HOME SHOPPING'S SPEER GET HOMESHOPPING BUY BY JOHNNIE L ROBERTS AND MARK ROBICHAUX STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK ROY M SPEER CHAIRMAN OF BELEAGUERED HOME SHOPPING NETWORK INC PURCHASED AN OCEANFRONT MANSION IN FREEPORT GRAND BAHAMA IN LATE 1991 AT WHAT MAY HAVE BEEN A BARGAIN PRICE THE SELLER A COIN WHOLESALER WHOSE COMPANY THEN BEGAN RECEIVING MILLIONS OF DOLLARS IN FIRSTTIME ORDERS FROM THE VIDEO RETAILER MR SPEER AND OTHER HOME SHOPPING EXECUTIVES HAVE BEEN IMPLICATED IN SEVERAL RECENT LAWSUITS ALLEGING THEY TOOK IMPROPER PAYMENTS FROM SUPPLIERS HELD SECRET OWNERSHIP STAKES IN VENDORS USED A STOCK AWARD AS HUSH MONEY AND FIRED ONE EXECUTIVE WHO TRIED TO BRING THE CHARGES TO LIGHT A FEDERAL GRAND JURY THE SECURITIES AND EXCHANGE COMMISSION AND THE INTERNAL REVENUE SERVICE ARE INVESTIGATING AFTER BUYING THE HOUSE ON A NEARLY THREEACRE SITE IN THE EXCLUSIVE PORT AREA OF LUCAYA MR SPEER DIDN'T DISCLOSE THE TRANSACTION TO HOME SHOPPING SHAREHOLDERS AND IT IS UNCLEAR WHETHER HE WAS REQUIRED TO DO SO UNDER SEC RULES MOREOVER THE COMMEMORATIVE COINS THAT HOME SHOPPING SUBSEQUENTLY ORDERED HAD POOR SALES ACCORDING TO FORMER EXECUTIVES AND INDUSTRY OFFICIALS THAT MAY HAVE CONTRIBUTED SEVERAL MILLION DOLLARS TO A TOTAL WRITEDOWN OF 227 MILLION AND A NET LOSS IN THE MOST RECENT QUARTER ACCORDING TO RECORDS OBTAINED BY THE WALL STREET JOURNAL MR SPEER IN 1991 FORMED A BAHAMIAN COMPANY NAMED INTERPHASE LTD WHICH THEN PAID 560000 TO MAX AND SHEILA HUMBERT IN DECEMBER 1991 FOR THE FREEPORT ESTATE MR HUMBERT OWNS ALMOST HALF OF FREEPORTBASED PARAMOUNT INTERNATIONAL COIN CORP AND HE IS THE SOLE OWNER OF AN ORLANDO FLA COMPANY OF THE SAME NAME A FEW MONTHS LATER HOME SHOPPING BEGAN ORDERING HUNDREDS OF THOUSANDS OF FRAMED COINS FROM PARAMOUNT TO SELL ON THE NETWORK ACCORDING TO FORMER HOME SHOPPING EXECUTIVES BEFORE THE REALESTATE TRANSACTION PARAMOUNT HADN'T BEEN A SUPPLIER TO HOME SHOPPING AS PARAMOUNT'S BUSINESS SWELLED HOME SHOPPING SLASHED COIN ORDERS FROM OTHER LONGSTANDING VENDORS BAHAMIAN REALESTATE SPECIALISTS SAID THIS WEEK THE INDICATED PRICE OF 560000 IN THE SALE OF THE HOME TO MR SPEER WOULD MARK A DISCOUNT FROM THE PREVAILING MARKET VALUE OF THE PROPERTY IN LATE 1991 DAVID HUNTER AN AGENT WITH CHURCHILL & JONES A REALESTATE FIRM THAT HAS OPERATED FOR 26 YEARS ON THE ISLAND FIGURES THE HOUSE COULD HAVE FETCHED UPWARD OF 1 MILLION AT THE TIME AND PRICES IN THE AREA HAVE CLIMBED SINCE THEN THE ESTATE IS ONE OF FEWER THAN 50 OCEANFRONT PROPERTIES ON THE ISLAND AND IT IS IN THE FORTUNE BAY SUBDIVISION ALONG THE SOUTHERN RIM OF THE ISLAND ON SPANISH MAIN DRIVE KNOWN BY SOME LOCALS AS MILLIONAIRES' ROW MR SPEER DID NOT RESPOND TO CALLS SEEKING COMMENT MR HUMBERT OF PARAMOUNT INTERNATIONAL SAID IN AN INTERVIEW YESTERDAY THAT MR SPEER HAD PAID HIM MORE THAN THE 560000 THAT IS LISTED IN THE SALE DOCUMENT THAT BOTH MEN SIGNED AND FILED WITH THE BAHAMIAN GOVERNMENT IF TRUE THAT MAY VIOLATE BAHAMIAN LAW REGARDING REALESTATE TRANSACTION TAXES MR HUMBERT DECLINED TO SAY HOW MUCH EXTRA MR SPEER PAID HIM I CAN'T TELL YOU THAT NO COMMENT HE SAID HE WAS HAPPY MR SPEER BOUGHT THE ESTATE BECAUSE IT IS DIFFICULT TO SELL PROPERTY IN THE BAHAMAS MR HUMBERT FURTHER STATED THERE WAS NO CONNECTION BETWEEN THE SALE OF THE HOME AND ANY VENDOR RELATIONS WITH HOME SHOPPING BECAUSE MR SPEER ACQUIRED THE FREEPORT HOUSE FROM MR HUMBERT PERSONALLY RATHER THAN FROM MR HUMBERT'S COMPANY IT ISN'T CLEAR WHETHER THE SALE WAS REQUIRED TO BE DISCLOSED UNDER SEC RULES AN SEC SPOKESMAN DECLINED TO COMMENT YESTERDAY ON WHETHER DISCLOSURE WAS REQUIRED FEDERAL AND STATE AUTHORITIES ARE BELIEVED TO BE LOOKING INTO THE ALLEGATIONS OF FINANCIAL TIES BETWEEN VENDORS AND MR SPEER AND HOME SHOPPING'S FORMER PRESIDENT LOWELL PAXSON AMONG OTHERS HOME SHOPPING AND ITS NEW MAJORITY OWNER LIBERTY MEDIA CORP ALSO ARE LOOKING INTO THE VARIOUS CHARGES LIBERTY WHICH PAID MR SPEER 160 MILLION IN CASH AND STOCK IN DECEMBER TO ACQUIRE A 23 STAKE AND 65 VOTING CONTROL OF HOME SHOPPING BROUGHT IN OUTSIDER GERALD HOGAN AS THE NEW HOME SHOPPING PRESIDENT TO INVESTIGATE THE CHARGES LIBERTY HAS APPOINTED A PANEL OF THREE LIBERTY EXECUTIVES CHAIRMAN JOHN C MALONE PRESIDENT PETER BARTON AND VICE PRESIDENT ROBERT BENNETT YET MR SPEER CONTINUES TO HOLD A STRONG POSITION ON THE INSIDE HE STILL OWNS A SIGNIFICANT STAKE IN HOME SHOPPING AND HE NOW IS ONE OF THE BIGGEST OUTSIDE SHAREHOLDERS IN LIBERTY MEDIA WITH ABOUT A 9 STAKE IN THAT COMPANY LIBERTY HAS HIRED TOP LEGAL TALENT TO DEFEND HOME SHOPPING AGAINST THE RAFT OF ALLEGATIONS FORMER US ATTORNEY GENERAL GRIFFIN B BELL OF KING & SPALDING ATLANTA IS REPRESENTING THE COMPANY IN CONNECTION WITH THE SEC INVESTIGATION WHILE THE TAMPA FLA LAW FIRM WINKLES & TROMBLEY WHICH INCLUDES FORMER FEDERAL PROSECUTORS IS DEFENDING THE COMPANY AGAINST CHARGES LODGED BY A FIRED GENERAL COUNSEL SOME OF THE FIRST ALLEGATIONS OF IMPROPRIETY AT HOME SHOPPING SURFACED LAST DECEMBER A SHAREHOLDER FILED SUIT IN FEDERAL DISTRICT COURT IN TAMPA CHARGING THAT THE COMPANY HAD ILLEGALLY PAID MORE THAN 8 MILLION TO MR SPEER'S SON RICHARD FOR COMPUTER CONSULTING UNDER A CONTRACT THAT HAD EXPIRED FOUR YEARS EARLIER HOME SHOPPING RECENTLY TERMINATED ITS RELATIONSHIP WITH RICHARD SPEER A FEW MONTHS AFTER THAT CHARGE HOME SHOPPING GOT CAUGHT IN THE CROSSFIRE OF A BITTER DIVORCE CASE THE EXWIFE OF THE COMPANY'S FORMER GENERAL COUNSEL FERNANDO DIFILIPPO ALLEGED IN FLORIDA STATE COURT THAT HOME SHOPPING'S ROY SPEER AND MR PAXSON GAVE MR DIFILIPPO 12 MILLION OF SHARES TO SILENCE HIM ON HIS THREAT TO EXPOSE THEIR POSSIBLE INTERESTS IN COMPANY VENDORS MESSRS SPEER PAXSON AND DIFILIPPO HAVE DENIED THOSE ALLEGATIONS BUT A TAMPABASED GRAND JURY IS NOW LOOKING INTO THE MATTER IN ANOTHER SUIT MR DIFILIPPO'S SUCCESSOR AS GENERAL COUNSEL MADE ADDITIONAL ACCUSATIONS INCLUDING SUPPOSED MOB TIES TO THE COMPANY AND SECURITIESLAW VIOLATIONS OTHER PRIVATE SUITS CLAIMED THAT VENDORS PAID COMMERCIAL BRIBES TO UNNAMED HOME SHOPPING EXECUTIVES TO LAND ORDERS FROM HOME SHOPPING AND DISPLACE RIVALS NONE OF THE VARIOUS LAWSUITS HAVE MENTIONED PARAMOUNT INTERNATIONAL MR HUMBERT IN ADDITION TO OWNING ALMOST HALF OF THE BAHAMASBASED COMPANY RECENTLY ACQUIRED CONTROL OF THE FLORIDABASED SUBSIDIARY THOUGH MR AND MRS HUMBERT HAVE BEEN LONGTIME BAHAMIAN RESIDENTS IT COULDN'T BE DETERMINED HOW LONG THEY HAD OWNED THE PROPERTY THEY SOLD TO MR SPEER A REPORTER VISITED THE SITE EARLIER THIS WEEK THE VERY PRIVATE TWOSTORY HOME IS TUCKED BETWEEN AN OCEAN VISTA TO THE REAR AND ACROSS SPANISH MAIN DRIVE OUT FRONT A CANAL AND DOCK A CONSTRUCTION CREW HAS BEEN BUILDING A GUEST HOUSE HALF THE SIZE OF THE MAIN ONE WITH A SECONDSTORY WALKWAY CONNECTING THE TWO AROUND BACK A MULTILEVEL STONE FOUNTAIN CASCADES INTO A SWIMMING POOL BORDERED BY STONE THE MAIN HOME SITS ON TWO BEACHFRONT LOTS WHICH TOGETHER EQUAL NEARLY TWO ACRES AND ARE MADE ALL THE MORE VALUABLE BY A THIRD LOT ACROSS THE STREETNEARLY AN ACRE OF CANALFRONT LAND WITH ROWS OF BANANA PLANTS AND TROPICAL BUSHES AND DOCKSPACE FOR A YACHT MR HUMBERT SAID HE BUILT THE ORIGINAL HOUSE IN 1985 AND THAT HE LIVED THERE UNTIL 1991 IN CONFIRMING THE SALE OF THE HOME TO MR SPEER HE WOULDN'T SPECIFY THE PRICE HE CLAIMS TO HAVE RECEIVED BAHAMIAN DOCUMENTS LIST ONLY THE 560000 PRICE PLUS 67200 THAT MR SPEER PAID IN TAXES ON THE SALE THE FIGURE DOESN'T NECESSARILY INCLUDE CONTENTS SUCH AS FURNITURE OR LARGE APPLIANCES WHICH COULD HAVE ADDED THOUSANDS TO THE FINAL PRICE ALSO THE PROPERTY RECORDS WOULDN'T LIST ATTORNEYS' FEES WHICH AT ABOUT 5 OF THE SALE COULD ADD 28000 MR HUMBERT RECALLS MEETING MR SPEER IN 1991 THOUGH HE DOESN'T REMEMBER WHO INTRODUCED THEM A FEW MONTHS AFTER THEIR TRANSACTION HOME SHOPPING BEGAN ORDERING MILLIONS OF DOLLARS OF COINS AND COIN JEWELRY FROM THE COMPANY ACCORDING TO FORMER HOME SHOPPING EXECUTIVES ONE FORMER OFFICIAL PUT THE TOTAL AT AS MUCH AS 15 MILLION AMONG THE GOODS WERE CHRISTOPHER COLUMBUS COMMEMORATIVE COINS AND RUSSIAN RUBLES TWO OTHER MAJOR SUPPLIERS OF COINS COIN CREATIONS OF GARDENIA CALIF AND FULLER FINDING OF RHODE ISLAND SAW THEIR HOME SHOPPING BUSINESS DROP PRECIPITOUSLY F PAUL MOONEY PRESIDENT OF FULLER FINDING SAYS HIS ORDERS HAVE DROPPED TO 154000 SO FAR IN THE FISCAL YEAR ENDING JUNE 30 FROM 24 MILLION IN FISCAL 1992 AND 18 MILLION IN FISCAL 1991 HE SAYS HE DOESN'T KNOW WHY THE BUSINESS DRIED UP 9304230096 930423 INTERNATIONAL BRIEF ROYAL INSURANCE PLC BRITISH FIRM EXPECTS TO POST GAIN IN FIRSTQUARTER NET ROYAL INSURANCE PLC A UK COMPOSITE INSURER SAID IT BELIEVES THE FIRST QUARTER SHOWED AN IMPROVEMENT FROM THE COMPARABLE PERIOD IN 1992 SIR JOHN CUCKNEY CHAIRMAN SPEAKING AT THE ANNUAL SHAREHOLDERS MEETING DIDN'T DISCLOSE DETAILS BUT SAID THE QUARTER WILL SHOW AN IMPROVEMENT OVER THE COMPARABLE PERIOD FOR 1992 IN 1992 THE COMPANY MADE SIGNIFICANT PROGRESS ON OUR ROAD TO RECOVERY MR CUCKNEY SAID AFTER THE MEETING THE STRATEGY HAS THREE KEY ELEMENTS THE STRENGTHENING OF THE MANAGEMENT IN DEPTH THE STRENGTHENING OF THE BALANCE SHEET AND THE IMPLEMENTATION OF THE BUSINESS IMPROVEMENT PROGRAM FOCUSING ON UNDERWRITING CLAIMS AND EXPENSE CONTROL MR CUCKNEY ALSO INDICATED THE DIVIDEND WAS NOW AT A SUSTAINABLE LEVEL 9304230095 930423 TECHNOLOGY ADVANCED MICRO CHIP DISCLOSURE SUNNYVALE CALIF ADVANCED MICRO DEVICES INC DISCLOSED SOME DETAILS ABOUT ITS CLONES OF INTEL CORP'S 486 CHIP USED IN PERSONAL COMPUTERS THE SEMICONDUCTOR MAKER SAID IT WILL SHIP THOUSANDS OF THE CHIPS IN MAY AND THAT THE CHIP'S PRODUCTION WOULD NOT AFFECT OUTPUT OF ITS OLDER 386 CHIP CLONES ADVANCED MICRO DEVICES ALSO SAID THAT TWO OF ITS 486 CHIP MODELS WILL SELL FOR 306 AND 417 RESPECTIVELY IN QUANTITIES OF 1000 9304230094 930423 BUSINESS BRIEF AMAX INC FIRSTPERIOD LOSS NARROWED GOLD UNIT SWINGS TO LOSS AMAX INC POSTED A NARROWER LOSS FOR THE FIRST QUARTER COMPARED WITH ITS YEAREARLIER LOSS BUT ITS AMAX GOLD INC UNIT REPORTED A LOSS COMPARED WITH NET INCOME FOR A YEAR AGO AMAX SAID IT HAD A LOSS OF 298 MILLION OR 42 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 766 MILLION OR 88 CENTS A SHARE IN THE YEAR AGO PERIOD THE COMPANY REPORTED A CHARGE OF 99 MILLION FOR ACCOUNTING CHANGES AND A 556 MILLION GAIN FROM SALE OF AMAX GOLD STOCK SALES FELL ABOUT 34 TO 8472 MILLION FROM 8769 MILLION THE COMPANY'S 68OWNED AMAX GOLD UNIT REPORTED A LOSS OF 52 MILLION OR SEVEN CENTS A SHARE COMPARED WITH NET OF 23 MILLION OR THREE CENTS A SHARE A YEAR AGO THE COMPANY SAID PROBLEMS WITH ORE GRADE AT ITS HAYDEN HILL MINE IN CALIFORNIA CONTRIBUTED TO THE LOSS THE COMPANY SAID 1993 RESULTS WILL CONTINUE TO BE HURT BY OREGRADE PROBLEMS AT HAYDEN HILL AND BY HIGHER COSTS EXPECTED AT ITS GUANACO MINE DUE TO THE START UP OF A NEW PRODUCTION PROCESS THERE 9304230093 930423 BUSINESS BRIEF DANIELS & BELL INC JUDGE ORDERS TERMINATION OF FIRM TO PAY OFF DEBTS A SUPERIOR COURT JUDGE IN MORRIS COUNTY NJ ORDERED THAT DANIELS & BELL INC A BROKERAGE FIRM IN NEW YORK BE EITHER DISPOSED OF OR TERMINATED AS SOON AS POSSIBLE TO PAY OFF MOUNTING DEBTS DANIELS & BELL IN MORRISTOWN NJ IS PART OF THE ESTATE OF THE LATE TRAVERS BELL JR WHO DIED SUDDENLY OF A HEART ATTACK IN 1988 MR BELL'S SON DARRYL BELL HAD PETITIONED THE COURT TO HAVE THE ESTATE ONCE VALUED AS HIGH AS 14 MILLION DECLARED INSOLVENT TRAVERS BELL JR WAS THE FIRST BLACK AMERICAN TO BUY A SEAT ON THE NEW YORK STOCK EXCHANGE JUDGE REGINALD STANTON ACCEPTED THE PETITION TO DECLARE THE ESTATE INSOLVENT CREDITORS WILL BE RANKED WITH THE INTERNAL REVENUE SERVICE HAVING FIRST PRIORITY THE COURT SAID THAT 23 MILLION IN BACK TAXES OWED BY THE ESTATE FAR EXCEED ITS CURRENT VALUE 9304230092 930423 BUSINESS BRIEF BOWATER INC LOSS FOR QUARTER WIDENED PRICING OVERCAPACITY CITED BOWATER INC REPORTED A WIDER LOSS FOR THE FIRST QUARTER AS ITS PRINCIPAL PAPER MARKETS CONTINUED TO SUFFER FROM LOW PRICES AND MARKET OVERCAPACITY THE DARIEN CONN PAPER AND PULP COMPANY REPORTED A LOSS OF 229 MILLION OR 65 CENTS A SHARE COMPARED WITH A LOSS OF 187 MILLION OR 54 CENTS A SHARE IN THE YEAREARLIER QUARTER IN 1992 THE COMPANY RECORDED A NET GAIN OF 109 MILLION OR 30 CENTS A SHARE FROM CHANGES IN ACCOUNTING METHODS FOR INCOME TAXES AND POSTRETIREMENT BENEFITS REVENUE FOR THE QUARTER ROSE 38 TO 3869 MILLION BOWATER SAID SIGNS OF INCREASED ECONOMIC ACTIVITY HAVE YET TO TRANSLATE INTO PROFITABLE SELLING PRICES FOR MOST OF THE COMPANY'S PRODUCTS IT ADDED THAT NEWSPRINT CONSUMPTION HAS SHOWN IMPROVEMENT AND IT BELIEVES THE PAPER PULP MARKET HAS BOTTOMED 9304230091 930423 REVIEW & OUTLOOK EDITORIAL THE REPUBLICANS' MOMENT THERE ARE FILIBUSTERS AND THERE ARE FILIBUSTERS THIS ONE HELD A PRESIDENT'S FEET TO THE FIRE WHEN HE WENT AGAINST THE MANIFEST MOOD OF THE COUNTRY INCLUDING THE 43 WHO JUST A FEW MONTHS AGO PUT HIM IN OFFICE SUDDENLY THE BIG QUESTION ISN'T WHAT THE PRESIDENT WILL DO NEXT IT'S WHAT THE REPUBLICANS WILL DO SOME ON THE WINNING SIDE WANT TO PARLAY THEIR VICTORY INTO A ROLE FOR THEMSELVES AS PLAYERS THAT'S A RECIPE FOR SPENDING THE NEXT FOUR YEARS GRUBBING CRUMBS OFF THE CLINTON AGENDA AS IT MOVES THROUGH CONGRESS THE MOMENT IS RIPE FOR SOMETHING AMBITIOUS IT'S TIME FOR THE REPUBLICANS TO REASSERT THE VISION THEY LOST WHEN RONALD REAGAN LEFT TOWN GEORGE MITCHELL COULDN'T BE MORE WRONG WHEN HE SAYS THAT THIS WAS THE ACT OF A SPITEFUL MINORITY THE CLINTON PROGRAM WAS IN TROUBLE WITH HOUSE DEMOCRATS BEFORE IT EVER GOT TO THE SENATE ONCE THERE FOUR DEMOCRATS CROSSED THE AISLE TO VOTE FOR A REPUBLICAN ALTERNATIVE EXON BOB KERREY SHELBY AND NUNN SENATOR BOB KRUEGER THE DEMOCRAT APPOINTED TO LLOYD BENTSEN'S SEAT IS RUNNING AWAY FROM THE CLINTONITES AND ALL THEIR WORKS IN HIS TEXAS CAMPAIGN MR CLINTON WILL RAIL ABOUT GRIDLOCK AND BLAME REPUBLICANS FOR ANY UNEMPLOYMENT LEFT IN THE ECONOMY BOB DOLE DOESN'T SEEM VERY WORRIED HE'S MAKING WHISTLESTOPS IN IOWA AND NEW HAMPSHIRE AND SUDDENLY PEOPLE ARE TALKING ABOUT A REPUBLICAN MAJORITY IN THE SENATE AFTER 1994 THE REPUBLICANS WHETHER ALL OF THEM REALIZE IT OR NOT ARE RIGHT WHERE THE AMERICAN PEOPLE ARE IN FEBRUARY AN ABC NEWSWASHINGTON POST POLL ASKED VOTERS DO YOU WANT SMALLER GOVERNMENT AND FEWER SERVICES OR A BIGGER GOVERNMENT WITH MORE SERVICES SOME 67 OPTED FOR SMALLER GOVERNMENT THAT'S 17 POINTS LARGER THAN THE PERCENTAGE THAT FAVORED SMALLER GOVERNMENT IN 1984 WHEN THE SAME POLL WAS GIVEN JUST AS MR REAGAN WAS ON HIS WAY TO A 49STATE LANDSLIDE THERE'S A REASON FOR THIS AND IT'S MORE THAN IDEOLOGICAL VOTERS ARE FED UP WITH PAYING TAXES AND GETTING SO LITTLE BACK FOR THEIR MONEY THEY WERE PROPERLY DELIGHTED WHEN A NEW KIND OF DEMOCRAT FINALLY SHOWED UP DURING THE CAMPAIGN BUT WHERE'D HE GO IT SEEMS NOW THE DEMOCRATIC PARTY STILL CAN'T BRING ITSELF TO ACKNOWLEDGE LIMITS COMPASSION THEIR REIGNING PUBLIC PHILOSOPHY SOMEHOW CAN'T TELL THEM WHICH DEMANDS THE GOVERNMENT SHOULD HONOR WHICH IT SHOULD REJECT SO THEY JUST OPEN THE SPIGOT CALLING THE WHOLE PUDDLE STIMULUS THE REPUBLICANS NEED ONLY REACH OUT FOR THE REWARDS OF BEING THE PARTY OF REALLY LIMITED GOVERNMENT THE BABY BOOMERS ARE PUSHING PAST 40 NOW AND THE POLITICAL CENTER OF GRAVITY IS MOVING TO THE SUBURBS THESE PEOPLE ARE DRAWING A BEAD ON WHAT'S REALLY IMPORTANT THE SECURITY AND FUTURE OF THEIR FAMILIES AND THEY INCREASINGLY VIEW AN OVERPRICED RUNAWAY GOVERNMENT AS A THREAT TO THAT SECURITY NOT THE GUARANTOR OF IT BY KEEPING THIS IN MIND MR DOLE AND FRIENDS CAN GRIDLOCK AWAY AND THE COUNTRY WILL SUPPORT THEM DESPITE ALL THE FAIRNESS HOOEY NOBODY BELIEVES THE GOVERNMENT NEEDS MORE OF OUR MONEY THE CLINTONITE TAX HIKES CAN AND SHOULD BE SHOT DOWN IN THEIR TRACKS AND MR CLINTON SHOULD BE PRESENTED WITH A LINETIME VETO SO FINALLY A DEMOCRAT CAN BEGIN TO REIN IN ALL THE PROGRAMS HIS PARTY HAS INFLICTED ON THE COUNTRY THE OTHER SHOE IS AN ELECTORALLY ATTRACTIVE GROWTH AGENDA MR DOLE LED THE FIGHT AGAINST THE INSIDIOUS BRACKET CREEP OF THE INCOME TAX IN 1981 HE SHOULD FINISH THE JOB BY INDEXING CAPITAL GAINS AND PUSHING OTHER CORRECTIVES TO THE WAY WE PUNISH SAVERS AND INVESTORS AS IF THEY WERE DOING SOMETHING ANTISOCIAL AND TO HELP OUTFIT FOLKS FOR THE JOBS THAT WILL THEN BE CREATED REPUBLICANS OUGHT TO GET SERIOUS ABOUT SCHOOL CHOICE AND WELFARE REFORM BOTH THESE INITIATIVES ARE ABOUT RESTORING UPWARD MOBILITY TO THOSE PRECINCTS WHERE DEMOCRATIC POLICY HAS MADE IT SCARCE NOW THE REPUBLICANS CAN'T MAKE THIS HAPPEN ALONE BUT THEY MIGHT FIND SOME SOUL MATES ON THE OTHER SIDE OF THE AISLE AFTER ALL FACED WITH A SIMILAR SITUATION IN 1980 A LEADING DEMOCRATIC SENATOR NAMED LLOYD BENTSEN ARGUED PERSUASIVELY THAT KEYNESIAN STIMULUS WAS ALWAYS TOO LATE AND TOO INEFFECTIVE INSTEAD HE SAID CONGRESS OUGHT TO WORRY ABOUT KEEPING RECOVERY GOING WITH A TAX CUT TO INCREASE PRODUCTIVITY THROUGH PROVIDING INCENTIVES FOR INDIVIDUALS AND FIRMS TO SAVE AND INVEST FINALLY LET US TAKE COMFORT IN THE INSTINCTS OF OUR PRESIDENT WHAT THIS MEANS IS THAT ONCE THE GROWTH TRAIN IS LEAVING THE STATION THE BIGGEST PROBLEM WOULD BE KEEPING BILL CLINTON FROM CLIMBING INTO THE ENGINEER'S CAB TO TAKE THE CREDIT 9304230090 930423 BUSINESS BRIEF KIMBERLYCLARK CORP CONSUMERPRODUCTS CONCERN SWINGS TO 1STQUARTER NET KIMBERLYCLARK CORP DALLAS SAID IT EARNED 1248 MILLION OR 78 CENTS A SHARE IN THE FIRST QUARTER COMPARED WITH A LOSS OF 779 MILLION OR 49 CENTS A SHARE IN THE YEAREARLIER PERIOD WHICH INCLUDED AN ACCOUNTING CHARGE EXCLUDING A NET CHARGE TO ADOPT NEW ACCOUNTING RULES FOR RETIREE HEALTH BENEFITS AND INCOME TAXES LAST YEAR KIMBERLYCLARK EARNED 1321 MILLION OR 82 CENTS A SHARE SALES FELL 22 TO 17 BILLION THE MAKER OF HOUSEHOLD PERSONAL CARE AND HEALTHCARE PRODUCTS AND NEWSPRINT AND SPECIALTY PAPERS CALLED THE FIRST QUARTER DIFFICULT BECAUSE OF WEAK MARKETS FOR SOME CONSUMER AND INDUSTRIAL PRODUCTS IN NORTH AMERICA AND EUROPE HIGH RETAIL INVENTORIES OF THE COMPANY'S HUGGIES DIAPERS AT 1992'S END LED TO LOWER ORDERS IN THE FIRST QUARTER AND A PRICE WAR IN THE DISPOSABLE DIAPER MARKET HAD A NEGATIVE IMPACT INDUSTRY OVERCAPACITY IN CONSUMER AND INDUSTRIAL BATHROOM TISSUE ALSO HOBBLED THE COMPANY'S FINANCIAL RESULTS AND CURRENCY EXCHANGE RATES DEPRESSED SALES KIMBERLYCLARK SAID 9304230089 930423 BUSINESS BRIEF LOCKHEED CORP FIRSTQUARTER PROFIT TOTALS 565 MILLION SALES RISE 13 LOCKHEED CORP REPORTED FIRSTQUARTER EARNINGS OF 76 MILLION OR 122 A SHARE COMPARED WITH A LOSS OF 565 MILLION OR 904 A SHARE A YEAR EARLIER INCLUDING A RETROACTIVE ACCOUNTING CHARGE THE CALABASAS CALIF AEROSPACE CONCERN RESTATED RESULTS FOR THE 1992 PERIOD AFTER TAKING A RETROACTIVE CHARGE FOR THE NEW ACCOUNTING STANDARD FOR RETIREE HEALTH BENEFITS BEFORE THE CHARGE LOCKHEED HAD EARNINGS OF 66 MILLION OR 106 A SHARE SALES FOR THE QUARTER ROSE 13 TO 25 BILLION FROM 223 BILLION A YEAR EARLIER THE LATEST RESULTS ARE THE FIRST TO REFLECT LOCKHEED'S ACQUISITION OF GENERAL DYNAMICS CORP'S JET FIGHTER BUSINESS 9304230088 930423 BUSINESS BRIEF PETER J SCHMITT CO CHAPTER 11 REVAMPING PLAN CLEARED BY CREDITORS COURT PETER J SCHMITT CO BUFFALO NY SAID ITS CREDITORS VOTED TO APPROVE ITS PLAN OF REORGANIZATION AND THE US BANKRUPTCY COURT IN WILMINGTON DEL CONFIRMED THE PLAN THE CLOSELY HELD COMPANY WHICH WAS A REGIONAL WHOLESALER TO SUPERMARKETS SAID IT EXPECTS TO EMERGE FROM BANKRUPTCY IN LATE MAY SCHMITT SAID THAT UNDER THE PLAN CERTAIN PRIORITY CREDITORS INCLUDING EMPLOYEES AND VENDORS HOLDING POSTPETITION CLAIMS WILL RECEIVE FULL PAYMENT OF THEIR CLAIMS THE COMPANY ALSO SAID SECURED CREDITORS SUCH AS REVOLVER BANKS AND SENIOR LENDERS WILL RECEIVE LESS THAN THE FULL AMOUNT OF THEIR CLAIMS AND LESS THAN WHAT IS ENTITLED TO THEM UNDER THE US BANKRUPTCY CODE UNSECURED CREDITORS AND RECLAMATION VENDORS WILL SPLIT THE REMAINING ASSETS SCHMITT FILED FOR CHAPTER 11 PROTECTION FROM CREDITORS IN MAY 1992 THE COMPANY SOLD SUBSTANTIALLY ALL OF ITS OPERATING ASSETS IN JANUARY 9304230087 930423 BUSINESS BRIEF CHUBB CORP FIRSTQUARTER NET FELL 12 REFLECTING ONETIME CHARGE CHUBB CORP REPORTED A 12 DECLINE IN FIRSTQUARTER EARNINGS REFLECTING A ONETIME CHARGE FOR ADOPTION OF NEW ACCOUNTING RULES ON POSTRETIREMENT BENEFITS AND INCOME TAXES THE WARREN NJ PROPERTY AND CASUALTY INSURER REPORTED NET INCOME OF 1258 MILLION OR 142 A SHARE COMPARED WITH 1431 MILLION OR 162 A SHARE IN THE 1992 QUARTER THE RECENT QUARTER INCLUDED A CHARGE OF 20 MILLION OR 22 CENTS A SHARE FOR THE ACCOUNTING CHANGES UNDERWRITING LOSSES IN PROPERTY AND CASUALTY WERE 21 MILLION COMPARED WITH PROFIT OF 87 MILLION A YEAR EARLIER NET PREMIUMS WRITTEN INCREASED 87 TO 817 MILLION WHILE COMBINED UNDERWRITING LOSSES AND EXPENSES WERE 998 OF UNDERWRITING PREMIUMS HIGHER THAN THE 981 OF A YEAR EARLIER CATASTROPHE LOSSES TOTALED 282 MILLION IN THE QUARTER COMPARED WITH 37 MILLION CHUBB SHARES FELL 2 TO 90 IN LATE NEW YORK STOCK EXCHANGE TRADING 9304230086 930423 BUSINESS BRIEF INTERNATIONAL FAMILY ENTERTAINMENT TWO SHAREHOLDERS EXERCISE OPTIONS TO ACQUIRE STOCK INTERNATIONAL FAMILY ENTERTAINMENT INC SAID TWO STOCKHOLDERS EXERCISED THEIR STOCK OPTIONS AND ACQUIRED 25 MILLION SHARES FOR ABOUT 269 MILLION INTERNATIONAL FAMILY IN VIRGINIA BEACH VA WHICH OWNS AND OPERATES THE FAMILY CHANNEL CABLE NETWORK SAID LIBERTY PROGRAMMING CORP AND CHRISTIAN BROADCASTING NETWORK INC EXERCISED THEIR RIGHTS TO PURCHASE INTERNATIONAL FAMILY CLASS B COMMON STOCK LIBERTY PROGRAMMING IS A UNIT OF CABLE COMPANY LIBERTY MEDIA CORP INTERNATIONAL FAMILY ENTERTAINMENT AND CHRISTIAN BROADCASTING NETWORK ARE PART OF A MEDIA EMPIRE BUILT BY TELEVISION EVANGELIST PAT ROBERTSON LIBERTY PURCHASED ABOUT 15 MILLION SHARES AND CHRISTIAN BROADCASTING PURCHASED ONE MILLION SHARES AT A PRICE OF 10875 A SHARE INTERNATIONAL FAMILY SHARES CLOSED YESTERDAY UNCHANGED AT 1525 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE AT DEC 31 IT HAD ABOUT 361 MILLION SHARES ON A FULLY DILUTED BASIS 9304230085 930423 BUSINESS BRIEF IMMUNEX CORP RESEARCH OTHER COSTS LED TO LOSS FOR FIRST QUARTER IMMUNEX CORP POSTED A FIRSTQUARTER LOSS WHICH RESULTED FROM HIGHER RESEARCH MARKETING AND LEGAL COSTS THE SEATTLE IMMUNOLOGICALPRODUCTS CONCERN REPORTED A LOSS OF 95 MILLION OR 63 CENTS A SHARE FOR THE QUARTER AGAINST A YEARAGO LOSS OF 28 MILLION OR 19 CENTS A SHARE REVENUE ROSE TO 172 MILLION FROM 147 MILLION A YEAR EARLIER DURING THE QUARTER RESEARCH AND DEVELOPMENT COSTS ROSE 27 AS THE COMPANY EXPANDED CLINICAL TESTING OF NEW PRODUCTS SALES GENERAL AND ADMINISTRATIVE COSTS JUMPED 51 REFLECTING INCREASED MARKETING ACTIVITIES AND LEGAL EXPENSES RELATING TO THE COMPANY'S PROPOSED MERGER WITH AMERICAN CYANAMID CO A SPECIAL SHAREHOLDER MEETING TO VOTE ON THAT TRANSACTION IS SCHEDULED FOR MAY 25 9304230084 930423 BUSINESS BRIEF TYCO TOYS INC FIRM POSTS QUARTERLY LOSS AGAINST A PROFIT A YEAR AGO TYCO TOYS INC HURT BY THE WANING POPULARITY OF LITTLE MERMAID DOLLS AND RADIOCONTROLLED VEHICLES REPORTED A LOSS FOR THE FIRST QUARTER ON A 25 SALES DECLINE THE MOUNT LAUREL NJ CONCERN'S LOSS WAS 129 MILLION OR 39 CENTS A SHARE IN THE YEARAGO QUARTER TYCO HAD NET INCOME OF 29 MILLION OR 12 CENTS A SHARE SALES WERE 100 MILLION COMPARED WITH 134 MILLION TYCO SAID THE SALES DECLINE IN ITS ONCEHOT MERMAID AND RADIO TOYS WAS PARTIALLY OFFSET BY HIGHER INTERNATIONAL SALES DUE LARGELY TO NEW UNITS IN EUROPE AND AUSTRALIA THE COMPANY ALSO SAID NET INCOME WAS HURT BY HIGHER OPERATING COSTS ABROAD AND HIGHER INTEREST EXPENSES 9304230083 930423 FINANCING BUSINESS MARK RESOURCES INC MARK RESOURCES INC CALGARY ALBERTA SAID IT AGREED TO ISSUE TO A GROUP OF UNDERWRITERS SIX MILLION SPECIAL WARRANTS FOR TOTAL PROCEEDS OF 495 MILLION CANADIAN DOLLARS US393 MILLION THE UNDERWRITERS LED BY FIRST MARATHON SECURITIES LTD OF TORONTO WILL RESELL THE WARRANTS TO THE PUBLIC FOR THE ISSUE PRICE OF C825 EACH EACH WARRANT CAN BE EXCHANGED FOR ONE COMMON SHARE OF MARK THE COMPANY SAID THE WARRANTS ARE CONVERTIBLE AUTOMATICALLY UPON REGULATORS' APPROVAL OF THE PROSPECTUS THE TRANSACTION IS EXPECTED TO CLOSE BY MAY 12 THE GAS AND OIL CONCERN HAD 277 MILLION COMMON SHARES OUTSTANDING IN TRADING ON THE TORONTO STOCK EXCHANGE YESTERDAY MARK CLOSED AT C825 UNCHANGED 9304230082 930423 BUSINESS BRIEF CENTEX CORP FIRM POSTS 63 RISE IN NET FOR FISCAL FOURTH QUARTER CENTEX CORP REPORTED A 63 RISE IN FISCAL FOURTHQUARTER NET INCOME CITING A SURGE IN HOME CLOSINGS THAT THE CONSTRUCTION AND BANKING COMPANY ATTRIBUTED TO LOWER INTEREST RATES AND AN IMPROVING NATIONAL ECONOMY THE DALLAS COMPANY SAID ITS NET FOR THE QUARTER ENDED MARCH 31 LEAPED TO 153 MILLION OR 47 CENTS A SHARE FROM 94 MILLION OR 30 CENTS A SHARE A YEAR EARLIER ON A 25 GAIN IN REVENUE TO 651 MILLION FROM 5225 MILLION FOR THE YEAR CENTEX SAID ITS NET INCOME SOARED 77 TO 61 MILLION OR 191 A SHARE ITS SECONDBEST EARNINGS EVER FROM 346 MILLION OR 111 A SHARE FOR FISCAL 1992 REVENUE GREW 16 TO A RECORD 25 BILLION FROM 217 BILLION A YEAR EARLIER THE COMPANY SAID HOME CLOSINGS NEW HOUSING ORDERS AND MARGINS FOR ITS HOUSING CONSTRUCTION UNIT ROSE SIGNIFICANTLY BOTH FOR THE FOURTH QUARTER AND THE YEAR CENTEX SAID HOME CLOSINGS ORDERS AND YEAREND BACKLOG FOR FISCAL 1993 WERE AT THE HIGHEST LEVELS IN COMPANY HISTORY 9304230081 930423 ROSS'S ARMY PEROT VOTERS COVETED BY BOTH MAJOR PARTIES HOLD OUT FOR GOALS THEY DEMAND DEFICIT BE CUT YET GRIPE AS GOP CURBS CLINTON SPENDING PLANS THE KEY TO ELECTORAL SUCCESS BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL HARTFORD CONN WITH THE STRANGULATION OF PRESIDENT CLINTON'S ECONOMIC STIMULUS PACKAGE GRIDLOCK MAY BE BACK IN FASHION IN WASHINGTON BUT NOT WITH THE PEROTISTAS THE MOST COVETED BLOC OF VOTERS IN THE NATION WILLIAM ALBRECHT ENLISTED IN ROSS PEROT'S ARMY LAST FALL AND HE REMAINS SO UNHAPPY WITH WASHINGTON THAT HE IS STAYING RIGHT THERE THAT IS A PROBLEM FOR PRESIDENT CLINTON BUT AN EVEN BIGGER PROBLEM FOR THE PRESIDENT'S REPUBLICAN FOES IN CONGRESS WASHINGTON SIMPLY DOESN'T KNOW HOW TO GET THE JOB DONE THAT NEEDS TO BE DONE COMPLAINS MR ALBRECHT A 48YEAROLD RESIDENT OF A HARTFORD SUBURB WHO VOTED FOR MR PEROT IN HOPES OF SHAKING UP THE SYSTEM ROSS HAD THAT ONE PEGGED DESPITE HIS REPUBLICAN LEANINGS MR ALBRECHT GIVES PRESIDENT CLINTON GRUDGING CREDIT FOR AT LEAST SEEKING CHANGE WHILE REBUKING HAWKY REPUBLICANS IN CONGRESS FOR FAILING TO GIVE THE PRESIDENT'S PROGRAM MORE OF A CHANCE WHETHER I LIKE ALL OF CLINTON'S IDEAS OR NOT WHAT'S HAPPENING IN WASHINGTON NOW IS STOPPING MOST OF THEM FROM GOING ANYWHERE MR ALBRECHT SAYS SO WE'RE NOT GOING TO KNOW WHETHER THEY'D BE GOOD OR NOT MR ALBRECHT AND HIS FELLOW PEROTISTAS MAY BE THE MOST IMPORTANT VOTERS IN AMERICA TODAY FOR THEY REPRESENT THE SWING CONSTITUENCY THAT PROMISES TO DECIDE NATIONAL ELECTIONS FOR YEARS TO COME ALMOST SIX MONTHS AFTER THEY STUNNED THE AMERICAN POLITICAL SYSTEM BY GIVING ROSS PEROT 19 OF THE PRESIDENTIAL VOTE MORE THAN ANY THIRD CANDIDATE IN 80 YEARS THE PEROTISTAS SEEM UNCONVINCED THAT ANYONE IN WASHINGTON IS REALLY MEETING THEIR DEMANDS AS A RESULT THERE IS LITTLE SIGN THAT EITHER DEMOCRATS OR REPUBLICANS HAVE MADE SUBSTANTIAL INROADS YET IN SEIZING THE PEROT VOTERS IN A NEW NATIONWIDE WALL STREET JOURNAL/NBC NEWS POLL 73 OF THOSE WHO VOTED FOR MR PEROT SAY THINGS IN WASHINGTON ARE PRETTY MUCH AS BEFORE DESPITE THE NEW FACES BROUGHT IN BY LAST FALL'S ELECTION ONLY 29 SAY THE COUNTRY IS MOVING IN THE RIGHT DIRECTION A SIGNIFICANTLY MORE PESSIMISTIC READING THAN OFFERED BY OTHER VOTERS ALL TOLD THERE ARE FEW SIGNS THIS POWERFUL BLOC IS DISPERSING DESPITE SUCH PREDICTIONS IN BOTH THE POLL AND IN A LONG DISCUSSION WITH A GROUP OF PEROT VOTERS HERE IN CONNECTICUT'S CAPITAL MOST SAY THEY WOULD VOTE FOR THE TEXAS BILLIONAIRE IF THE ELECTION WERE HELD AGAIN TODAY ROSS PEROT HAS DONE SOMETHING THAT WE HAVEN'T SEEN IN AT LEAST A QUARTER OF A CENTURY AND MAYBE IN 50 YEARS OBSERVE POLLSTERS PETER HART A DEMOCRAT AND REPUBLICAN ROBERT TEETER WHO CONDUCTED THE SURVEY HE HAS ASSEMBLED AND RETAINED A CONSTITUENCY DURING A PRESIDENTIAL ELECTION AND HE STILL HOLDS THESE VOTERS' SUPPORT SOME FIVE MONTHS AFTER ELECTION DAY THERE IS NO MORE IMPORTANT ISSUE TO DEMOCRATS OR REPUBLICANS THAN THE QUESTION OF WHERE THE PEROTISTAS ARE HEADING IF EITHER PARTY CAN FIGURE OUT A WAY TO WIN THEIR ALLEGIANCE IT WILL HAVE FOUND THE KEY TO ELECTORAL DOMINANCE WHEN FRANKLIN ROOSEVELT MANAGED TO PULL ABOARD THE VOTERS OF THE PROGRESSIVE MOVEMENT IN THE 1930S HE PUT TOGETHER A DEMOCRATIC COALITION THAT RULED FOR 20 YEARS SIMILARLY WHEN RICHARD NIXON WON OVER MOST GEORGE WALLACE VOTERS AFTER THE 1968 ELECTION HE ESTABLISHED AN ALLIANCE THAT GAVE REPUBLICANS VICTORIES IN FOUR OF THE NEXT FIVE PRESIDENTIAL ELECTIONS AS A CONSEQUENCE DEMOCRATS AND REPUBLICANS ALIKE ARE OBSESSED WITH FIGURING OUT WHAT PEROTISTAS WANT BASED BOTH ON THE NATIONWIDE SURVEY AND ON THE DISCUSSION WHICH WAS CONDUCTED FOR THE JOURNAL BY FORMER PEROT POLLSTER FRANK LUNTZ HERE IS WHAT THEY ARE DEMANDING WASHINGTON SHOULD WORK MORE INTENSELY ON CUTTING GOVERNMENT SPENDING GIVEN A CHOICE BETWEEN HIGHER TAXES FOR MORE GOVERNMENT SERVICES OR LOWER TAXES FOR FEWER SERVICES 65 OF PEROT VOTERS CHOOSE FEWER SERVICES COMPARED WITH 47 OF EVERYBODY ELSE THOUGH THEY SAY THEY WOULD ACCEPT SOME SPECIFIC NEW TAXES TO PAY FOR HEALTH CARE 78 OF PEROT VOTERS SAY THE OVERALL CLINTON PROGRAM RELIES TOO MUCH ON TAX INCREASES AND TOO LITTLE ON SPENDING CUTS THE IMPACT OF MONEY ON POLITICS HAS TO BE CUT BACK THIS IS A GUTLEVEL ISSUE FOR PEROTISTAS RANKING RIGHT BEHIND THE DEFICIT THEY ARE MORE INCLINED THAN OTHER AMERICANS TO SUPPORT BOTH PUBLIC FINANCING OF CAMPAIGNS AND LIMITS ON CAMPAIGN SPENDING LOBBYISTS' INFLUENCE SHOULD BE REDUCED ASKED HOW MUCH INFLUENCE LOBBYISTS HAVE IN WASHINGTON 81 OF PEROT VOTERS SAY A GREAT DEAL COMPARED WITH 68 FOR ALL OTHER ADULTS GET THE LOBBYISTS OUT OF WASHINGTON SAYS MR ALBRECHT THE GOVERNMENT SHOULDN'T FOCUS MUCH ON POLICING SOCIAL BEHAVIOR SOME 42 OF PEROT VOTERS FAVOR ALLOWING OPENLY GAY PEOPLE TO SERVE IN THE MILITARY AND 65 SAY THEY DON'T THINK ABORTION SHOULD BE ILLEGAL OVERALL THE POLL AND DISCUSSION DO OFFER SOME GOOD NEWS FOR MR CLINTON ALTHOUGH PEROT VOTERS GIVE HIM LOWER APPROVAL RATINGS AND OFFER LESS SUPPORT FOR HIS ECONOMIC PLAN THAN DOES THE PUBLIC GENERALLY THEY ALSO CLEARLY WANT MR CLINTON TO HAVE A CHANCE TO SUCCEED BY A SIZABLE MARGIN THEY SAY MR CLINTON IS MORE SERIOUS THAN ARE CONGRESSIONAL REPUBLICANS ABOUT REDUCING THE FEDERAL DEFICIT PARADOXICALLY WHILE PEROT VOTERS TEND TO SHARE REPUBLICANS' VIEW THAT MR CLINTON'S ECONOMIC PROGRAM LEANS TOO MUCH ON TAXES THEY WANT ACTION SO BADLY THAT MANY SEEM PEEVED AT THE REPUBLICANS FOR TRYING TO STOP THE PROGRAM ALL TOLD 59 OF THE PEROT VOTERS SAY THEY THINK REPUBLICANS ARE OPPOSING THE CLINTON PROGRAM FOR POLITICAL REASONS BY A 36 TO 22 MARGIN PEROT VOTERS ARE MORE LIKELY TO SAY THAT THE DEMOCRATIC PARTY IS ADDRESSING PEROT ISSUES THAN THE REPUBLICAN PARTY THAT IS PARTICULARLY BAD NEWS FOR REPUBLICANS BECAUSE SLIGHTLY MORE PEROT VOTERS STARTED OUT AS REPUBLICANS THAN DEMOCRATS PEROT VOTERS ARE INCLINED TO GIVE CLINTON THE BENEFIT OF THE DOUBT SAYS MR LUNTZ A REPUBLICAN WHO HAS CONTINUED TO STUDY THE PEROT PHENOMENON SINCE THE ELECTION BECAUSE HE'S NEW AND BECAUSE HE'S YOUNG THEY'LL GIVE HIM ANOTHER YEAR BY CONTRAST HE OBSERVES THEY'RE NOT WILLING TO GIVE CONGRESS A BREAK REPUBLICANS OR DEMOCRATS THE 11MEMBER DISCUSSION GROUP IS MUCH TOO SMALL TO BE A SCIENTIFIC SAMPLING BUT IT MAGNIFIES AND HELPS EXPLAIN THE FINDINGS OF THE POLL MR PEROT DID WELL HERE IN CONNECTICUT THOUGH MR CLINTON CARRIED THE STATE MR PEROT PULLED IN 22 OF THE VOTE THE PEROT SUPPORTERS WHO GATHERED HERE ON A PLEASANT SPRING EVENING REPRESENT A CROSSSECTION OF THOSE WHO BACKED HIM MALE AND FEMALE YOUNG AND OLD WHITE COLLAR AND BLUE COLLAR DEMOCRATS REPUBLICANS AND INDEPENDENTS OBVIOUSLY ALL THESE VOTERS HOPED FOR A SIGNIFICANT CHANGE IN WASHINGTON WHEN THEY CAST THEIR BALLOTS LAST NOVEMBER THERE IS A SENSE THAT WASHINGTON HAS CHANGED ITS WAYS SOMEWHAT SIMPLY BECAUSE MR CLINTON IS ON THE SCENE BUT HASN'T CHANGED NEARLY ENOUGH I KIND OF THINK WE'RE ON THE RIGHT TRACK ONLY IN THE SENSE THAT WE'VE BEEN 12 YEARS ON AN ACID TRIP THAT TOOK US UP TO THE MOON WHERE THE GAS ESCAPED FROM THE BALLOON AND WE HIT BOTTOM AGAIN SAYS EDWARD BREWER OF WEST HARTFORD A RETIRED ENGINEER WHO NOW IS A PARTTIME REALESTATE AGENT IN THAT RESPECT I THINK WE'RE AT LEAST ON OUR FEET AGAIN WITH THEIR HOPES FOR RAPID AND RADICAL CHANGE IN WASHINGTON DIMINISHED SOME OF THESE PEROTISTAS HAVE SIMPLY CONCLUDED THAT IT WILL TAKE LONGER THAN THEY HOPED TO TURN THE GOVERNMENT AROUND IT TOOK A LONG TIME TO TURN IT INTO THIS MESS SAYS MARY JANE SKELLY AN ELEMENTARYSCHOOL TEACHER WHO IS TAKING TIME OFF FROM HER CAREER TO RAISE THREE CHILDREN IT'S NOT GOING TO GET BETTER OVERNIGHT BUT OTHERS ARE MORE DISAPPOINTED THAT THEIR EFFORT TO HELP BRING REVOLUTIONARY CHANGE PRODUCED WHAT THEY SEE AS ONLY INCREMENTAL STEPS IT CLEARLY LEAVES THEM YEARNING FOR A CHANCE TO SHAKE UP THE SYSTEM BY FINDING MORE NEW AND UNCONVENTIONAL POLITICIANS TO SUPPORT I VOTED FOR ALL THE STRANGERS SAYS KELLY COLEMAN A 27YEAROLD ADMINISTRATIVE WORKER AT AETNA LIFE & CASUALTY CO NONE OF THEM GOT ELECTED NONE OF THE ONES I FELT WERE THE BEST CANDIDATES GOT ELECTED IT REALLY AGGRAVATED ME SOME OF THE DISAPPOINTMENT IS DIRECTED TOWARD PRESIDENT CLINTON HE DOESN'T APPEAR TO BE STRONG SO FAR SAYS JOHN BARNOWSKI A 43YEAROLD TECHNICAL WRITER WHO DESCRIBES HIMSELF AS A ONETIME LIBERAL WHO IS GROWING MORE CONSERVATIVE WITH TIME I WOULDN'T YET SAY HE'S INEFFECTIVE BECAUSE IT'S ONLY BEEN MONTHS BUT HE DOESN'T APPEAR TO BE STRONG HE DOESN'T TAKE THE BULL BY THE HORNS ON THE ISSUES MR CLINTON'S TAX PROPOSALS ARE CLEARLY TOO MUCH TO SUIT THESE PEROTISTAS THOUGH SOME SAY THEY WOULD ACCEPT ADDITIONAL TAXES TO REDUCE THE DEFICIT THEY UNANIMOUSLY AGREE THAT THEY WOULD PREFER MORE CUTS IN SPENDING EVEN ON PROGRAMS THAT THEY USE BUT THE GROUP DOESN'T SEEM AS CONCERNED WITH MR CLINTON'S IDEOLOGICAL LEANINGS OR SPECIFIC POLICY PRESCRIPTIONS AS THEY ARE WITH HIS ABILITY TO FORCE ACTION IN WASHINGTON NOBODY EXPRESSES MUCH CONFIDENCE THAT THE DEFICIT ACTUALLY WILL BE LOWER AFTER MR CLINTON'S TERM YET THERE ALSO IS A PALPABLE WILLINGNESS TO SUSPEND JUDGMENT FOR NOW IN THE HOPE THAT HE WILL PRODUCE SOMETHING GOOD I'D LIKE TO SEE US GIVE IT A CHANCE AND SEE WHAT HAPPENS SAYS MS COLEMAN I DON'T KNOW ENOUGH SPECIFICS ABOUT EVERY ISSUE TO REALLY MAKE A DETAILED STATEMENT ON THAT BUT THAT'S MY GUT FEELING THE UPSHOT IS THAT MR CLINTON SEEMS TO BE HOLDING SUPPORT FROM A SIGNIFICANT CHUNK OF PEROT VOTERS FOR HIS ECONOMIC PLAN AND STILL HAS A CHANCE TO WIN THEM OVER FOR GOOD IN THE POLL 38 OF PEROT VOTERS SAY THEY SUPPORT THE CLINTON ECONOMIC PROGRAM 45 SAY THEY OPPOSE IT BUT THERE IS A STRONGER SENSE IN THE DISCUSSION HERE THAT REPUBLICANS MAY HAVE OVERDONE IT BY FILIBUSTERING MR CLINTON'S 16 BILLION ECONOMICSTIMULUS PACKAGE THE IMAGE OF POLITICIANS TALKING TO DEATH A PROPOSAL FOR ACTION HASN'T GONE DOWN WELL WITH THESE PEROT VOTERS MOST OF WHOM SAY THEY BLAME THE REPUBLICANS MORE THAN MR CLINTON FOR THE CURRENT GRIDLOCK IN WASHINGTON REPUBLICANS JUST GO BACK TO BEING LIKE LITTLE BOYS AND LITTLE GIRLS EXPLODES MS SKELLY THE SCHOOLTEACHER I THINK IT'S SO STUPID WHETHER YOU VOTED FOR PEROT OR CLINTON OR BUSH CLINTON'S IN THERE IT'S OUR COUNTRY EVERYBODY'S GOT TO PULL TOGETHER AND TRY TO HELP OUT I REALLY SEE IT LIKE THIS THEY ACT LIKE LITTLE SPOILED BRATS MR BARNOWSKI THE FORMER LIBERAL AGREES THEY HAVE PHILOSOPHICAL DIFFERENCES WITH DEMOCRATIC PLANS BUT THEY SHOULD BE WORKING TOWARD THE COMMON GOOD AND TRY TO COMPROMISE NOW INSTEAD OF CATEGORICALLY SAYING NO WE DON'T LIKE THAT THE PEROTISTAS GATHERED HERE STILL GENERALLY ADORE THE TEXAS BILLIONAIRE PERSONALLY BUT THERE ARE A FEW INDICATIONS THAT THE BOND MAY BE WEAKENING ONE VOTER WHO CLEARLY HAS FALLEN AWAY IS DONALD CIOCHINI A 47YEAROLD SERVICE MANAGER FOR A PETROLEUM DISTRIBUTOR WHEN HE IS ASKED TO GIVE A ONEWORD DESCRIPTION OF MR PEROT HE RESPONDS DICTATOR ASKED TO ELABORATE HE SAYS THE MORE AND MORE I LOOKED AT HIM HE MADE ME NERVOUS HE CERTAINLY IS ONESIDED HE WANTS IT HIS WAY AND THAT'S THE WAY IT'S GOT TO BE WITH HIM MR CIOCHINI SAYS THAT IF THE 1992 ELECTION WERE BEING HELD TODAY HE WOULD VOTE FOR GEORGE BUSH BUT HE IS IN THE DISTINCT MINORITY HERE NINE OF THE 11 VOTERS HERE SAY THEY WOULD VOTE FOR MR PEROT AGAIN NONE OF THESE PEROT VOTERS HAVE SENT IN THE REQUIRED 15 TO FORMALLY JOIN MR PEROT'S NEW UNITED WE STAND POLITICAL ORGANIZATION MOST SAY THEY ARE MORE INTERESTED IN HIS IDEAS THAN IN THE MAN THOUGH THEY HAVE SOME DOUBTS THAT ANYONE ELSE COULD PICK UP THE BANNER EFFECTIVELY BUT WHETHER MR PEROT REEMERGES AS A PRESIDENTIAL CANDIDATE OR NOT MANY OF THESE PEROT VOTERS CLEARLY AREN'T YET READY TO RETURN TO THE RANKS OF THE TWO TRADITIONAL PARTIES THAT FEELING IS BEST ARTICULATED BY MR ALBRECHT WHO IS BITTER OVER BEING LAID OFF BY AETNA AFTER 27 YEARS AS A COMPUTER TECHNICIAN AND BEING FORCED TO ACCEPT A PARTTIME JOB WITHOUT HEALTH BENEFITS I HOPE HE DOESN'T DROP OUT SAYS MR ALBRECHT BUT WHETHER HE PERSONALLY RUNS OR NOT I WOULD LIKE TO SEE HIS CONCEPT OF A VIABLE NATIONAL THIRD PARTY COME TO FRUITION SO THAT THESE GUYS THAT CALL THEMSELVES DEMOCRATS AND REPUBLICANS CAN KIND OF GET THE IDEA THAT THERE'S REALLY A LOT OF US OUT THERE 9304230080 930423 BUSINESS BRIEF RYDER SYSTEM INC ACCOUNTING CHARGE IS CITED IN FIRSTQUARTER NET LOSS RYDER SYSTEM INC REPORTED A FIRSTQUARTER LOSS OF 12 MILLION OR FIVE CENTS A SHARE AS THE COMPANY TOOK A BIG CHARGE RELATED TO ACCOUNTING FOR POSTRETIREMENT BENEFITS BEFORE THE 254 MILLION ACCOUNTING CHARGE EARNINGS WERE 242 MILLION OR 28 CENTS A SHARE MEETING ANALYSTS' EXPECTATIONS IN THE YEARAGO QUARTER THE MIAMIBASED LEASING AND TRANSPORTATION CONCERN HAD NET INCOME OF 174 MILLION OR 20 CENTS A SHARE REVENUE ROSE 3 TO 128 BILLION FROM 124 BILLION THE COMPANY'S LARGEST OPERATION VEHICLE LEASING AND SERVICES POSTED A 6 GAIN IN REVENUE TO 8443 MILLION WHILE PROFIT MORE THAN DOUBLED TO 342 MILLION THE COMPANY'S CONSUMER TRUCK RENTAL BUSINESS SHOWED IMPROVED DEMAND DURING THE SEASONALLY WEAK QUARTER BUT WAS HAMPERED SOMEWHAT BY SEVERE WINTER STORMS AUTOMOTIVE CARRIER EARNINGS FELL AFFECTED PARTLY BY LOWER PRODUCTION AT SOME CUSTOMERS' MANUFACTURING PLANTS AVIATION SERVICES ALSO HAD LOWER EARNINGS 9304230079 930423 LOST IN THE CROWD A SOMALI CLAN ESCAPES WAR BUT GETS CAUGHT IN A JAM OF REFUGEES BY A CIRCUITOUS ROUTE THEY END UP IN RUSSIA JOINING GROWING THRONG OF EXILES BIRTH AND DEATH ON THE RUN BY LAURIE HAYS AND NEELA BANERJEE STAFF REPORTERS OF THE WALL STREET JOURNAL MOSCOW WHEN NIMO HASHI FLED HER HOME IN THE SOMALI CAPITAL OF MOGADISHU SHE HARDLY EXPECTED TO END UP HERE THAT WAS JAN 21 1991 ARMED REBELS SEEKING TO OVERTHROW THE GOVERNMENT HAD INVADED MOGADISHU AND WERE KILLING MEMBERS OF PRIVILEGED FAMILIES SUCH AS THE HASHIS AT 30 MRS HASHI WAS BEAUTIFUL WELLEDUCATED AND WEALTHY EVERYTHING GOOD HAPPENED FOR ME SHE SAYS IN FLAWLESS ENGLISH I WAS VERY HAPPY BEFORE ESCAPING THE CITY SHE PACKED ONE CHANGE OF CLOTHES FOR HERSELF AND EACH OF HER SIX CHILDREN IN A GREEN CANVAS BAG SHE PLACED HER GOLD JEWELRY IN A SAMSONITE MAKEUP CASE SHE DIDN'T EXPECT TO GO ANY FARTHER THAN THE NEARBY SOMALI COUNTRYSIDE OR TO REMAIN AWAY ANY LONGER THAN A WEEK SHE ANTICIPATED A QUICK REUNION WITH HER HUSBAND WHO WAS TRAPPED BY REBELS AT THE AIRPORT WHERE HE WORKED AS AN ENGINEER AMONG THE FAMILY MEMBERS ACCOMPANYING HER WAS ABDULLAH HASHI HER 25YEAROLD BROTHER WHO ASSURED EVERYONE THAT THE REBEL EFFORT WOULD COLLAPSE QUICKLY HE SAID THEY WOULD BE BACK IN MOGADISHU IN NO TIME BECOMING REFUGEES IT DIDN'T TURN OUT THAT WAY THE REBELS GAINED CONTROL OF MOGADISHU THEN SET ABOUT SEIZING THE REST OF SOMALIA FEARFUL FOR THEIR LIVES THE HASHIS LEFT THE COUNTRY THEY TRAVELED TO KENYA SYRIA THEN RUSSIA ALONG THE WAY EXPERIENCING HUNGER SICKNESS AND DEATH DAILY UNCERTAINTY ABOUT THE FUTURE RECURRING NIGHTMARES ABOUT THE FATE OF LOVED ONES BACK HOME TODAY NIMO HASHI AND HER FAMILY LIVE IN A CAMP WITH HUNDREDS OF THE 2000 OTHER SOMALI REFUGEES IN MOSCOW THERE ARE 185 MILLION REFUGEES IN THE WORLD UP FROM EIGHT MILLION 10 YEARS AGO ACCORDING TO THE UNITED NATIONS MUCH OF THE INCREASE IS TRACEABLE TO THE FALL OF THE SOVIET UNION AND ETHNIC VIOLENCE AND CIVIL WAR IN PLACES LIKE AFGHANISTAN THE FORMER YUGOSLAVIA SOMALIA AND SUDAN FAMILIES FLEEING THOSE COUNTRIES TYPICALLY FIND NO OTHER COUNTRY WILLING TO ACCEPT THEM ALL THEY CAN HOPE FOR IS TEMPORARY RESETTLEMENT UNTIL THE FIGHTING IN THEIR HOMELAND CEASES THEN THE UNITED NATIONS HIGH COMMISSIONER FOR REFUGEES WILL ASSIST THEIR RETURN WE ALL THOUGHT THAT WITH THE END OF THE COLD WAR THERE WOULD BE A NEW WORLD ORDER SAYS SYLVANA FOA A SPOKESWOMAN FOR THE HIGH COMMISSIONER INSTEAD WE HAVE A NEW WORLD ANARCHY THIS IS THE STORY THE HASHIS TELL WHEN THE WAR STARTED AGAINST MOHAMMED SIAD BARRE SOMALIA'S NOW OUSTED DICTATOR THE HASHI FAMILY WAS ON THE WRONG SIDE THEY WERE FROM THE DAROD CLAN THE SAME AS MR SIAD BARRE AND THREE HALF BROTHERS OF MRS HASHI SERVED IN MR SIAD BARRE'S GOVERNMENT ONE ALSO A BROTHERINLAW OF THE PRIME MINISTER WAS DIRECTOR OF TRANSPORTATION ANOTHER HAD SERVED AS AMBASSADOR TO MOSCOW THE THIRD HELD A LOWERLEVEL POST SOMALIA A COUNTRY THE SIZE OF TEXAS HAS EIGHT MILLION PEOPLE FOR YEARS IT HAS HAD SUBSTANTIAL POVERTY FAMINE AND UNEMPLOYMENT THE HASHIS WERE AMONG THE FEW WHO HAD A GOOD LIFE MRS HASHI'S 90YEAROLD FATHER HASHI DERIA A SMALL MAN WITH FINE FEATURES HAD MADE A FORTUNE IN SOMALIA'S FLOURISHING UNDERGROUND ECONOMY IMPORTING AND EXPORTING CLOTHES JEWELRY AND ANYTHING ELSE HE COULD BUY OR SELL HE WAS RICH ENOUGH TO AFFORD FOUR WIVES AND 21 CHILDREN THE FAMILY OWNED 17 HOUSES AND 11 CARS INCLUDING MORE THAN ONE MERCEDESBENZ MANY OF THE ELDER MR DERIA'S CHILDREN WORKED AND STUDIED ABROAD THEY WENT TO GOOD UNIVERSITIES IN AMERICA CANADA AND ENGLAND THEY TOOK JOBS AS ENGINEERS IN PLACES LIKE CAIRO AND ABU DHABI THE CAPITAL OF THE RICH OIL STATE OF UNITED ARAB EMIRATES AT 16 MRS HASHI A FAVORITE OF HER FATHER MARRIED ABDUHASSAH HASSAN A SMILING GOODNATURED MAN EIGHT YEARS HER SENIOR IN MUSLIM TRADITION HER FATHER ARRANGED HER MARRIAGE IN SOMALI TRADITION SHE KEPT HER FATHER'S FIRST NAME HASHI AS HER LAST SHE SAYS SHE GREW TO LOVE MR HASSAN THEY LIVED IN A SUNNY HOUSE WITH A PRETTY GARDEN AND WARM BREEZES BLOWING THROUGH THE WINDOWS THEY EMPLOYED A HOUSEKEEPER WHO CAME EVERY MORNING SHOPPED FOR THEIR FOOD AND PREPARED THEIR MEALS A MALE SERVANT WASHED AND IRONED THEIR CLOTHES AFTER SHE MARRIED MRS HASHI CONTINUED HER SECONDARY EDUCATION AND STARTED COLLEGE MAJORING IN ECONOMICS AT 18 SHE GAVE BIRTH TO THEIR FIRST CHILD MOHAMMED A DAUGHTER WAS BORN ONE YEAR LATER AFTER THAT SHE STOPPED SCHOOL AND HAD FOUR MORE CHILDREN WITH HER HUSBAND EMPLOYED AS AN ENGINEER FOR SOMALI AIRLINES THEY HAD PLENTY OF MONEY BUT MRS HASHI STARTED HER OWN BUSINESS ANYWAY AS A SMALL IMPORTER OF WHOLESALE CLOTHING WITH A NEPHEW SHE MADE TRIPS SEVERAL TIMES A MONTH DOWN TO THE PORT TO PICK UP CONTAINERS OF CLOTHES SHE THEN RESOLD THEM TO SHOPS IN TOWN WE DIDN'T NEED THE MONEY BUT YOU CAN ALWAYS USE MORE RIGHT SAYS MRS HASHI I HAD FUN DOING IT WITH THE MONEY SHE EARNED MRS HASHI BOUGHT GOLD JEWELRY ABDULLAH HASHI MRS HASHI'S BROTHER COMPLETED HIS ECONOMIC DEGREE AT THE PRESTIGIOUS SOMALI INSTITUTE OF DEVELOPMENT AND MANAGEMENT IN HIS OFF HOURS MR HASHI LIKED TO SWIM IN THE INDIAN OCEAN AND READ BOOKS HE ALSO LIKED TO BUY CLOTHES HE OWNED SUITS SHOES AND EYEGLASSES IMPORTED FROM EUROPE LIFE AROUND THE HASHIS HOWEVER WAS DETERIORATING AND THEY WERE WORRIED THEY KNEW THAT PRESIDENT SIAD BARRE WAS A DICTATOR HOLDING ON TO POWER ONLY THROUGH BRUTAL FORCE HIS TROOPS HAD BEEN RESORTING TO SUCH CRUEL MEASURES AS DESTROYING WATER HOLES IN REBEL AREAS THE ECONOMY WAS GETTING WORSE IN 1989 THE PERCAPITA INCOME IN SOMALIA WAS 210 HIGHER ONLY THAN IN COUNTRIES SUCH AS ETHIOPIA AND BANGLADESH INFLATION WAS SOARING PRODUCTION OF WHAT FEW RESOURCES IT HAD MAINLY LIVESTOCK AND BANANAS FELL SHARPLY EXPORTS WHICH HAD DROPPED FROM 94 MILLION IN 1987 TO 68 MILLION IN 1989 WERE DECLINING FURTHER OUTSIDE MOGADISHU WARRING CLANS SOLVED DISPUTES WITH GUNS AROUND JULY 1990 MR HASHI AND HIS BROTHER SENSED A WEAKENING OF THE GOVERNMENT OF PRESIDENT SIAD BARRE WHO HAD RULED SOMALIA EVER SINCE IT BECAME AN INDEPENDENT COUNTRY IN JULY OF 1960 THROUGH A MERGER OF WHAT HAD BEEN BRITISH SOMALILAND AND ITALIAN SOMALILAND NOW THE MAIN OPPOSITION CLAN HAWIYE STARTED A POWER STRUGGLE THAT EVERY DAY BECAME MORE EVIDENT WITH INCREASED FIGHTING MR HASHI URGED HIS FATHER HASHI DERIA TO LEAVE BECAUSE OF HIS STATURE IN THE BUSINESS COMMUNITY MR DERIA MIGHT EASILY BECOME A TARGET OF THE OPPOSITION BUT MR DERIA REFUSED TO GO THE FIGHTING GREW WORSE JUST GETTING FOOD WAS BECOMING IMPOSSIBLE RECALLS MRS HASHI WE BEGAN SEEING DEAD BODIES PILE UP ON OUR STREET HER BROTHER MR HASHI BEGAN MAKING PLANS FOR A QUICK ESCAPE IT WAS AGREED THAT THE SAFEST PLACE IN MOGADISHU WAS ANOTHER BROTHER'S HOUSE NEAR THE GUARDED GOVERNMENT COMPLEX ONE OF THE BROTHER'S SONS WAS SENT TO FIND A SUITABLE VILLAGE WHERE THE FAMILY COULD STAY HE DECIDED ON KURTWANOS A FARMING VILLAGE TWO HOURS AWAY THAT SEEMED TO HAVE A GOOD MILK SUPPLY HE RENTED A ROOM IN A HOUSE THERE FOR THE FAMILY THE DAY THE WAR OFFICIALLY STARTED DEC 31 1990 BEGAN NORMALLY MR HASHI RECALLS EVERYBODY WENT TO WORK AS USUAL BUT BY 1130 THE REBELS HAD ENTERED THE CITY THERE WAS SHOOTING REBELS SURROUNDED THE AIRPORT TRAPPING MRS HASHI'S HUSBAND SHE COULDN'T GET WORD TO HIM OR HE TO HER THERE WAS NO TIME TO TALK TO HIM SAYS MRS HASHI WE JUST HAD TO SAVE OURSELVES THE HASHIS MOVED INTO THE APPOINTED HOUSE ACROSS THE CITY AND STAYED THREE WEEKS HOPING THE FIGHTING WOULD STOP BUT IT GREW CLOSER UNTIL THEY WERE CROWDED INTO A CENTER ROOM WITH NO WINDOWS THEY LAY ON THE FLOOR AND UNDER BEDS FEARING FOR THEIR LIVES ALL THE WALLS WERE SHAKING THE GLASS FELL OUT OF THE WINDOWS SAYS MRS HASHI THE CHILDREN WERE CRYING SOME WERE IN SHOCK ON THE DAY THEY DECIDED TO LEAVE MOGADISHU ALTOGETHER 12 OF THEM CROWDED INTO A TOYOTA SEDAN MRS HASHI HER SIX CHILDREN HER MOTHER HER BROTHER AND HIS WIFE DERKA ABDI THEIR CHILD AND THE TEENAGE DAUGHTER OF ANOTHER HASHI SIBLING THEY TOOK WITH THEM 1700 AND ALL THEIR GOLD ESCORTED BY AN ARMED GOVERNMENT TRUCK THEY SPED THROUGH THE CITY AND OUT INTO THE COUNTRYSIDE THEY DIDN'T STOP WHEN GUNMEN TRIED TO FLAG THEM DOWN AND SHOT AT THE CARS THEY HEADED FOR THE HOUSE IN KURTWANOS WE WERE VERY SCARED NOBODY TALKED SAYS MRS HASHI THERE WAS REASON TO BE SCARED IN THE MONTHS THAT FOLLOWED TENS OF THOUSANDS OF PEOPLE IN MOGADISHU DIED FROM GUNSHOT WOUNDS OR SHELLING THE WAR ALSO INTENSIFIED A FOOD SHORTAGE THAT EVENTUALLY RESULTED IN THE STARVATION OF MORE THAN 300000 SOMALIS PROMPTING THE US TO LEAD A UNITED NATIONS INTERVENTION THERE IN KURTWANOS THE FAMILY LIVED IN A ROOM WITH NO TOILET OR RUNNING WATER ALTHOUGH THERE WAS NO FIGHTING IN THE VILLAGE THE HASHIS HEARD REPORTS OF REBEL SUCCESS IN MOGADISHU TWO WEEKS AFTER THEIR ARRIVAL IN THE VILLAGE SOME OTHER REFUGEES FROM MOGADISHU SHOWED UP THEY BROUGHT NEWS THAT HASHI DERIA THE HASHI SIBLINGS' FATHER WHO HAD REFUSED TO COME WITH THEM HAD BEEN SHOT WHILE HE SLEPT IN HIS BED AT NIGHT THE NEWCOMERS ALSO REPORTED THAT THE REBELS MIGHT SOON COME TO KURTWANOS MRS HASHI'S SPIRITS FELL SHE WAS SADDENED BY HER FATHER'S DEATH AND FRIGHTENED FOR HER LIFE HER BROTHER AFRAID THAT STAYING MEANT DEATH PLANNED A TRIP TO KISMAYU A SMALL FISHING VILLAGE ON THE INDIAN OCEAN FROM THERE HE HEARD THEY COULD GET A BOAT TO KENYA WHICH WAS OFFERING REFUGE TO SOMALIS TWO DAYS AFTER THE 12 HASHIS LEFT KURTWANOS REBELS TOOK THAT VILLAGE OTHER MEMBERS OF THE HASHI FAMILY WHO HAD ALSO GONE TO KURTWANOS BUT HADN'T LEFT YET FOR KISMAYU WERE STUCK ALTHOUGH A FEW ESCAPED NIMO HASHI AND HER BROTHER BELIEVE THE OTHERS WERE KILLED BECAUSE NO ONE HAS HEARD FROM THEM IN KISMAYU MEANWHILE MRS HASHI AND HER BROTHER SCOURED THE DOCKS LOOKING FOR A FISHERMAN WILLING TO MAKE THE TRIP TO KENYA FINALLY THEY WERE TOLD ABOUT A SWAHILI MAN NAMED MOHAMMED WHO MIGHT HELP THEY WENT TO HIS HUT THOUGH RELUCTANT AT FIRST TO TAKE THEM ALL THE WAY TO MOMBASA HOME OF THE KENYAN REFUGEE CAMP FOR SOMALIS HE FINALLY AGREED AT A PRICE OF 100 PER PERSON ON FEB 13 THEY DROVE TO A SECRET COVE SIX HOURS FROM KISMAYU WHERE THE FISHERMAN HAD HIDDEN THE BOAT THEY BROUGHT BREAD MOHAMMED BROUGHT STEEL BINS OF WATER FOR FOUR NIGHTS AND THREE DAYS THE HASHIS LAY ON THE FLOOR OF THE BOAT TO AVOID BEING SEEN EVERYONE GOT SEASICK PARTICULARLY MR HASHI'S WIFE DERKA ABDI WHO WAS NINE MONTHS PREGNANT EVERYBODY FELT PAIN EVERYBODY HAD TO TAKE CARE OF HIMSELF RECALLS NIMO HASHI IT WAS HARD TO THINK ABOUT ANYBODY ELSE BECAUSE I COULDN'T DO ANYTHING FOR THEM OR FOR MYSELF DERKA ABDI KNEW SHE SHOULDN'T HAVE BEEN TRAVELING IN HER CONDITION BUT THERE WAS NO OTHER CHOICE SHE SAYS MOHAMMED RENEGED ON HIS PROMISE TO TAKE THE FAMILY TO MOMBASA WHEN THE ISLAND OF LAMU A TOURIST STOP JUST OFF THE COAST OF KENYA CAME INTO SIGHT HE ANNOUNCED THEY HAD TO GET OFF THERE MR HASHI TRIED TO ARGUE WITH HIM BUT MOHAMMED WAS FIRM HE FEARED POLICE IN MOMBASA WOULD ARREST HIM AT LAMU THE HASHIS ENCOUNTERED THE HARSH REALITY OF REFUGEE LIFE HUNDREDS OF OTHER SOMALIS WERE LANDING THERE TOO THE ISLAND'S MAKESHIFT SHELTER A SORT OF TOWN HALL WAS CROWDED AND FILTHY THERE WAS NO WATER OR FOOD THE POLICE WOULDN'T LET MR HASHI OUT TO FIND SUPPLIES MR HASHI FELT THE POLICE TREATED HIM WITH DISDAIN THE SOMALIS TIRED DIRTY AND HUNGRY MANY SUFFERING FROM DYSENTERY WEREN'T WELCOME THE POLICE DIDN'T WANT THEM GOING NEAR THEIR TOWNS AND TOURIST ATTRACTIONS MR HASHI FOUND HIMSELF RUNNING FROM THE POLICE HIS WHOLE STAY IN KENYA I HATED THE POLICE FROM THE FIRST MOMENT SAYS MR HASHI THE HASHIS COULDN'T CONTINUE RIGHT AWAY TO THE BIG REFUGEE CAMP AT MOMBASA THE DAY AFTER THEIR ARRIVAL DERKA ABDI WENT INTO LABOR MRS HASHI TRIED TO FIND A CAR TO TAKE HER SISTERINLAW TO THE HOSPITAL SEVERAL KILOMETERS AWAY FAILING THAT SHE PERSUADED SOME MEN FROM THE CAMP TO HAUL MRS ABDI THERE IN A WHEELBARROW AT THE HOSPITAL SHE GAVE BIRTH TO A GIRL WHOM THEY NAMED ASHA FOR THE HASHIS' MOTHER MRS ABDI AND THE BABY WERE DISCHARGED FOUR DAYS LATER THE HASHIS THEN CROSSED TO THE MAINLAND AND TOOK A 14HOUR BUS TRIP TO MOMBASA HOT AND COVERED IN DUST WHEN THEY ARRIVED THEY WERE DEVASTATED BY WHAT THEY SAW POLICE RINGED THE CAMP ALLOWING NO ONE OUT THOUSANDS OF SOMALIS LIVED IN SQUALID COCONUTLEAF HUTS WITH DIRT FLOORS THERE WERE THREEHOUR LINES FOR THE TOILETS THE DRINKING WATER WAS BADLY CONTAMINATED PEOPLE WERE DYING FROM DIPHTHERIA AND MALARIA THE MEDICAL UNIT IN THE CAMP WAS OVERBURDENED THERE WAS HARDLY ANY FOOD RELUCTANTLY THE HASHIS MOVED INTO A HUT AND TRIED TO ADJUST THEY MADE A BED FROM STICKS MR HASHI SNEAKED OUT OF THE CAMP AT NIGHT TO SCAVENGE FOR BETTER FOOD IN TOWN OFTEN THE POLICE CAUGHT HIM TRIED TO EXTRACT BRIBES AND SENT HIM BACK MRS HASHI FELL ILL WITH MALARIA SHE LAY IN BED WITH A HIGH FEVER AND CHILLS AND WATCHED HELPLESSLY AS THE CHILDREN ONE BY ONE GOT SICK EVERYONE HOPED THAT LITTLE ASHA WHO HAD TURNED OUT TO BE A QUIET BABY WOULD BE SPARED BUT SHE ALSO BECAME ILL MR HASHI CARRIED HIS YOUNG DAUGHTER TO THE GATES HE BEGGED THE POLICE TO LET HIM TAKE HER TO A HOSPITAL IN TOWN THERE HE FELT SHE MIGHT HAVE A CHANCE I TOLD THEM SHE IS SICK AND THIS IS SERIOUS RECALLS MR HASHI BUT THEY REFUSED AND TOLD ME NO THEY BEHAVED BADLY TOWARDS US OFFICIALS OF THE OVERTAXED CAMP CLINIC CLAIMED TO HAVE NO ROOM FOR ASHA TO THEM SHE WAS A LOST CAUSE THE DOCTOR GAVE MR HASHI PILLS TO CONTROL HER VOMITING AND DIARRHEA THEN SAID THERE WAS NOTHING ELSE TO DO THE MEDICATION THE ADULTS WERE TAKING WASN'T FIT FOR INFANTS ASHA CRIED FOR THREE DAYS THE FAMILY TOOK TURNS HOLDING HER ON THE THIRD NIGHT HER MOTHER BECAME SO TIRED THAT SHE PUT THE BABY ON THE FLOOR AT SOME POINT DURING THE NIGHT THE CRYING STOPPED WHEN EVERYONE WOKE ASHA WAS DEAD I LOVED HER VERY MUCH BUT I WAS UNABLE TO SAVE HER SAYS MR HASHI I WAS TIRED AND DESPERATE WHENEVER THERE IS TALK OF THE BABY'S DEATH HIS WIFE BECOMES SILENT AND LOOKS OFF IN THE DISTANCE THE FAMILY BURIED HER THE NEXT DAY IN A CEMETERY THAT WAS FILLING UP WITH SOMALI CHILDREN AND THE ELDERLY ISLAMIC FATALISM INSTRUCTED MR HASHI TO REGARD HIS BABY'S DEATH AS GOD'S WILL STILL HE RESOLVED TO GET HIS FAMILY OUT OF THE NIGHTMARISH CAMP MR HASHI VISITED EMBASSIES SEEKING VISAS TO AMERICA CANADA AND AUSTRIA ALL TURNED HIM DOWN THEIR EXPLANATION WAS THAT HE WASN'T A RESIDENT OF KENYA THEN WORD SPREAD THAT THE SYRIANS WERE ALLOWING SOMALIS WHO HOLD ARAB LEAGUE PASSPORTS TO MOVE THERE WITHOUT VISAS SEVEN MONTHS AFTER THEIR ARRIVAL IN MOMBASA THE HASHIS USED SOME OF THEIR GOLD TO BUY PLANE TICKETS TO DAMASCUS THEY DREAMED OF FINDING A NORMAL LIFE AT FIRST IT SEEMED THEIR WISHES WOULD BE GRANTED MR HASHI WAS RELIEVED AT THE DAMASCUS AIRPORT WHEN GUARDS TOLD HIM TO MOVE FROM THE FOREIGN VISITORS' LINE TO THE CITIZENS' LINE DUE TO HIS ARAB LEAGUE PASSPORT THEY FOUND A DECENT PLACE TO LIVE A TWOROOM FURNISHED HOUSE THE CHILDREN MANY OF WHOM ALREADY SPOKE ARABIC WENT TO SCHOOL THE SYRIANS WOULDN'T ALLOW MR HASHI TO HOLD A JOB SO THE FAMILY EXISTED BY SELLING OFF HIS SISTER'S JEWELRY GRAM BY GRAM OR ABOUT 200 WORTH A MONTH MR HASHI STUDIED AT THE LIBRARIES AND WAS ALLOWED TO CHECK OUT BOOKS FOR FREE BECAUSE HE WAS A CITIZEN POLICE WHO STOPPED HIM IMMEDIATELY LET HIM GO AFTER SEEING HIS DOCUMENTS I WAS HAPPY NOT RUNNING FROM THE POLICE SAYS MR HASHI STILL THEY WERE RAPIDLY DEPLETING THEIR GOLD SUPPLY AND HE WANTED TO MOVE TO A COUNTRY WHERE HE COULD FIND WORK TO THAT END HE MADE THE ROUNDS OF VARIOUS EMBASSIES LOOKING FOR A WAY TO GET OUT HE HAD RELATIVES IN THE WEST WHO OFFERED SPONSORSHIP AGAIN HE WAS TURNED DOWN BY THE AMERICANS AND CANADIANS BECAUSE HE WASN'T A PERMANENT RESIDENT OF SYRIA BUT THE REAL PROBLEM WAS ONE THAT REFUGEES AROUND THE WORLD ENCOUNTER EMBASSIES ARE RELUCTANT TO GRANT EVEN TRAVEL VISAS TO REFUGEES FOR FEAR THEY WILL CLAIM POLITICAL ASYLUM UPON ARRIVAL AFTER THE HASHIS HAD BEEN IN SYRIA 10 MONTHS RUMORS SWEPT THEIR NEIGHBORHOOD THAT SOMALI MEN WERE BEING ROUNDED UP BY POLICE THERE WERE TOO MANY REFUGEES THE SYRIANS NO LONGER WANTED THE SOMALIS EVEN IF THEY WERE FELLOW ARABS EXACTLY HOW MUCH TRUTH THERE WAS BEHIND THE RUMORS ISN'T CLEAR BUT MR HASHI DECIDED THEY SHOULD LEAVE BEFORE HE WAS CAPTURED BUT WHERE COULD THEY GO MR HASHI SAW FEW OPTIONS NOBODY WANTED TO GO BACK TO KENYA OTHER AFRICAN NATIONS WERE UNWELCOMING AFTER TWO MONTHS HE KNEW OF ONLY ONE POSSIBILITY RUSSIA THROUGH FRIENDS THE HASHIS HEARD THAT BY GOING THROUGH RUSSIA THEY MIGHT BE ABLE TO GET TO EUROPE MR HASHI TELEPHONED SOME ACQUAINTANCES WHO HAD GONE TO MOSCOW THE POLICE THERE WEREN'T BOTHERING SOMALIS HE WAS TOLD ESCAPE WAS POSSIBLE SO THE HASHIS SOLD THE LAST OF THEIR GOLD AND HANDED MOST OF THE PROCEEDS TO AN OLD RUSSIAN MAN IN DAMASCUS WHO HAD A TRAVEL AGENCY IN EXCHANGE HE GAVE THEM RUSSIAN TOURIST VISAS THAT COST 350 FOR EACH ADULT AND 175 FOR EACH CHILD INCLUDED IN THE PACKAGE WAS A BUS RIDE FROM DAMASCUS TO TRABZON TURKEY AND A BOAT RIDE TO THE RUSSIAN BLACK SEA PORT OF SOCHI FROM THERE THEY WOULD CATCH A TRAIN TO MOSCOW AFTER A THREEDAY SEA VOYAGE THEY ARRIVED IN SOCHI LAST OCT 18 WITH 90 OTHER SOMALIS THE WEATHER WAS RAW A CROWD OF RUSSIANS FORMED AROUND THEM AS THEY GOT OFF THE BOAT INTERESTED TO SEE WHO HAD LANDED MR HASHI SAYS HE FELT FRIGHTENED BY THE STRANGENESS OF THE PEOPLE THE DARK WEATHER HAD AN OMINOUS FEEL THERE WERE ALSO MANY DRUNKS AIDED BY SOME ARAB STUDENTS WHO HAD ALSO COME TO SEE THE BOAT THE HASHIS FOUND THEIR WAY TO THE TRAIN STATION AND BOUGHT TICKETS FOR THE TRIP TO MOSCOW THEY SLEPT IN THE TRAIN STATION THAT NIGHT TAKING TURNS STAYING AWAKE TO GUARD THEIR BELONGINGS THEY HAD HEARD THAT RUSSIA HAD MANY THIEVES WHEN THEY GOT TO MOSCOW THE HASHIS CALLED A TELEPHONE NUMBER THAT SOME FRIENDS IN DAMASCUS HAD GIVEN THEM IT WAS THAT OF JOHN MELIN AN AMERICAN MINISTER WHO HEADS THE PROTESTANT CHAPLAIN EMBASSY IN MOSCOW MR MELIN HAD COME TO MOSCOW TO SET UP SOUP KITCHENS FOR RUSSIANS AND PERFORM OTHER SUCH WORKS BUT IN THE ABSENCE OF ANY UNITED NATIONS COMMISSION UP TO THEN SOME ARAB STUDENTS FAMILIAR WITH HIS WORK HAD DRAFTED HIM TO ASSIST SOMALIS AS WELL HE HELPED THE HASHIS SETTLE IN A REFUGEE CAMP AT SEREBRANKA THE CAMP AT SEREBRANKA IS A COLLECTION OF BRICK APARTMENT BUILDINGS THAT THE RUSSIAN ACADEMY OF SCIENCES OWNS AND HAS USED AS SUMMER DWELLINGS FOR ITS FACULTY MEMBERS THE CAMP IS LOCATED IN SCENIC COUNTRYSIDE ABOUT A ONEHOUR DRIVE FROM THE CENTER OF MOSCOW LIKE THE HASHIS OTHER SOMALI RESIDENTS OF THE CAMP HAD ARRIVED OVER THE LAST YEAR MOSTLY BY BOAT VIA TURKEY SOME CAME BY PLANE VIRTUALLY ALL HOPED TO PROCEED FROM MOSCOW TO EUROPE MOSCOW HOWEVER BECAME THE LAST STOP FOR MOST OF THE REFUGEES SOME TRIED TO GO ON TO EUROPE WITH FORGED VISAS BUT WERE CAUGHT AND SENT BACK TO MOSCOW OTHERS TRIED TO SNEAK ACROSS THE FINNISH BORDER BUT WERE CAUGHT BY RUSSIAN BORDER GUARDS STILL OTHERS TOOK BOATS FROM THE BALTIC STATES AND SUCCEEDED IN GAINING ENTRY TO SWEDEN THE HASHIS HAVEN'T MADE ANY ESCAPE ATTEMPTS THEY HAVE TOO MANY CHILDREN TO TRY CROSSING A BORDER ILLEGALLY THEY CAN'T GET A VISA TO ANY OTHER COUNTRY LEGALLY AND THEY ARE GRATEFUL TO BE IN A PLACE THAT THE UNITED NATIONS ENSURES IS SAFE AND COMFORTABLE AT THE REFUGEE CAMP HERE ROOMS ARE CLEAN AND WARM THERE ARE FRESH LINENS ON THE BEDS THE UNITED NATIONS COMMISSION PAYS FOR RENT AND FOOD WHICH COMES TO ABOUT 120 A DAY PER PERSON BUT THIS LIFE IS TEMPORARY AND FULL OF UNCERTAINTY SOMALIS AREN'T WELCOME AS RESIDENTS HERE OR ANYWHERE ELSE EXCEPT IN SOMALIA WHERE THEY BELIEVE DEATH AWAITS AND BECAUSE THEY DON'T HAVE PERMANENT REFUGEE STATUS HERE THEY CAN'T WORK THEIR CHILDREN CAN'T ATTEND RUSSIAN SCHOOLS AND THEY COULD BE FORCED TO LEAVE THE COUNTRY ANY TIME THOSE ARE SCARY THOUGHTS FOR A MOTHER THE MAIN THING I WORRY ABOUT IS MY CHILDREN I HAVE NOTHING FOR THEM SAYS MRS HASHI WHAT KIND OF EDUCATION CAN THEY GET WHAT IS THEIR FUTURE ONLY THE ISLAMIC FAITH STAVES OFF DESPAIR GOD WILL HELP US HE LOOKS AFTER US SHE SAYS FROM SOMALIA MEANWHILE COME REPORTS THAT THE HASHIS' HOMES HAVE BEEN DESTROYED THE FIGHTING THERE SHOWS NO SIGN OF EASING PROMPTING THE HASHIS TO PREDICT THAT IT WILL BE YEARS BEFORE THEY CAN RETURN ALTHOUGH MR HASHI DIDN'T APPROVE OF PRESIDENT BARRE'S BRUTAL REPRESSION HE SAYS HE KNOWS OF NO ALTERNATIVE FOR RESTORING PEACE TO SOMALIA IT WAS NOT A GOOD SYSTEM BUT IT WORKED BETTER THAN NOW SAYS MR HASHI LOOKING OUT THE WINDOW OF HER MOSCOW ROOM ONE DAY THIS WINTER PAST FIR TREES HEAVY WITH SNOW MRS HASHI SAID RUSSIA ISN'T BEAUTIFUL BUT MOGADISHU WAS BEAUTIFUL IT WAS RIGHT ON THE OCEAN GREEN AND HOT HERE THERE IS NOTHING TO DO NO PLACE TO GO FEW FRIENDS FOR THE CHILDREN MRS HASHI'S ELDEST SON MOHAMMED A TALL THIN 11YEAROLD WITH NARROW EYES LOOKS AT THE FLOOR AS HE DESCRIBES HIS LACK OF SUCCESS MAKING FRIENDS WITH THE RUSSIAN BOYS WHO COME TO PLAY BASKETBALL IN THE CAMP GYM THE RUSSIANS WON'T LET US PLAY WITH THEM SO WE JUST SIT AND WATCH HE SAYS SAYS YASEEN 8 IN MOGADISHU I PLAYED WITH MY FRIENDS AND WENT WHERE I WANTED HERE THEY CALL US CHORNI CHORNI A DEROGATORY TERM FOR BLACKS THEY HIT US WE DON'T PLAY WITH THEM INDEED THE BAR AT A NEARBY VILLAGE CENTER REFUSES TO SERVE SOMALIS BECAUSE THEY ARE THOUGHT TO CARRY DISEASES IN MOSCOW MEANWHILE THREE SOMALI MEN HAVE BEEN MURDERED FOR REASONS THAT ARE UNCLEAR OTHERS REPORTEDLY MISTAKEN FOR WEALTHIER AMERICAN BLACKS HAVE BEEN MUGGED MRS HASHI MAKES THE BEST OF LIFE HERE SHE TIES TRADITIONAL BRIGHTCOLORED SCARVES AROUND HER HEAD ALONG WITH HER BRIGHT SOMALI SKIRT SHE WEARS A DONATED MUSTARDYELLOW SWEATER STOCKINGS AND BOOTS SHE FILLS HER DAY FUSSING OVER THE CHILDREN MEDIATING THEIR DISPUTES AND CHIDING THEM WHEN THEY DON'T EAT ENOUGH SHE ALSO TEACHES SMALL GROUPS OF THE 80 OTHER CHILDREN WHO COME TO THE CAMP SCHOOL HER SISTERINLAW MRS ABDI PACES A DARK HALLWAY WITH HER NEW INFANT AHAMED WHO WAS BORN IN SYRIA JUST BEFORE THE TRIP TO MOSCOW A TAPE RECORDING OF THE KORAN BLARES FROM ONE ROOM CHILDREN ARE CRYING MRS HASHI'S MOTHER ASHA TALL AND SOMBERFACED UNDER HER VEIL WALKS SLOWLY FROM ROOM TO ROOM SHE DIDN'T GO OUTSIDE FOR THREE MONTHS FOR FEAR OF SLIPPING ON ICE LIKE MOST OF THE SOMALIS SHE FINDS COLD WEATHER UNBEARABLE HER GRANDCHILDREN BROUGHT HER FOOD FROM THE CAFETERIA IN A METAL PAN SHE REHEATED IT ON AN ELECTRIC BURNER SHE CONSTANTLY FINGERS BROWN WOODEN BEADS MOST RESTLESS OF ALL IS MR HASHI WHO USED TO WORK AS AN ACCOUNTANT FOR SOMALI AIRLINES FRUSTRATED BY HIS REFUGEE STATUS HE HAS GIVEN UP LOOKING FOR A JOB AFTER GETTING COUNTLESS REJECTIONS SEVERAL TIMES A WEEK HE WALKS TO A NEARBY TOWN AND CATCHES A TRAIN INTO MOSCOW HE SHOPS HE VISITS WITH OTHER SOMALIS AT AN APPOINTED RESTAURANT HE PHONES HIS SISTERS IN CANADA AND AMERICA WHO WERE LUCKY ENOUGH TO GO THERE FOUR YEARS AGO AS STUDENTS EVERY MONTH OR SO THEY SEND 50 OR 100 THE HASHIS USE IT TO BUY SUGAR MILK AND FRUIT WHEN THEY CAN FIND IT AS WELL AS CLOTHES THE CONVERSATIONS WITH HIS SISTERS ALSO GIVE MR HASHI HOPE OF SOMEDAY GETTING TO THE WEST HIMSELF BUT FOR NOW HE IS AN OUTOFPLACE FIGURE IN A BLACK JACKET BLUE JEANS WHITE SNEAKERS AND SKI CAP WALKING CROWDED STREETS BESIDE FURHATTED RUSSIANS IN HEAVY OVERCOATS MRS HASHI TRIES NOT TO WONDER ABOUT HER HUSBAND SHE HAS RECEIVED NO NEWS OF HIM AND BELIEVES HE IS DEAD IF HE WERE ALIVE HE WOULD HAVE CALLED ONE OF THEIR SISTERS IN THE WEST SHE THINKS PRODUCING HER ONLY PHOTOGRAPH OF HIM SHE SAYS IF HE'S DEAD HE'S DEAD IF HE'S NOT I'M SURE WE'LL MEET AGAIN SOMEDAY MRS HASHI'S YOUNGEST SON JIRIL 4 ASKS OFTEN ABOUT HIS FATHER THE MISSING FATHER HAS BECOME A DISTANT CONNECTION TO THE PLACE JIRIL LEFT AT AGE TWO MRS HASHI TELLS JIRIL THAT HIS FATHER IS WORKING IN ABU DHABI THE PROSPEROUS ARAB CAPITAL THAT MANY SOMALIS DREAM ABOUT REACHING HIS FATHER WILL COME SOON SHE SAYS JIRIL BELIEVES THE STORY WHEN HE HEARS A PLANE OVERHEAD HE TELLS FRIENDS THAT IT IS BRINGING HIS FATHER TO HIM OTHER TIMES WHEN HE IS FED UP AND TIRED HE PACKS HIS CLOTHES IN HIS BUCKET AND ANNOUNCES I'M GOING TO MY FATHER IN ABU DHABI 9304230078 930423 BUSINESS BRIEF CONTROL DATA SYSTEMS INC FIRM POSTS 1STPERIOD PROFIT AS BETTER RESULTS CONTINUE CONTROL DATA SYSTEMS INC CONTINUING ITS PATTERN OF IMPROVED RESULTS SINCE IT WAS SPUN OFF FROM THE FORMER CONTROL DATA CORP LAST MAY POSTED A FIRSTQUARTER PROFIT AGAINST A YEAREARLIER LOSS THE ARDEN HILLS MINN COMPANY MAKES SUSPENSION SYSTEMS FOR COMPUTER DISK DRIVES THE COMPANY REPORTED NET INCOME OF 13 MILLION OR 10 CENTS A SHARE FOR THE QUARTER ENDED APRIL 3 AGAINST A LOSS OF 67 MILLION OR 63 CENTS A SHARE A YEAR EARLIER THE TURNAROUND CAME DESPITE A 13 DROP IN REVENUE FOR THE QUARTER TO 1027 MILLION FROM 1181 MILLION A YEAR AGO JIM OUSLEY PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID RECENT WEAKNESS IN EUROPEAN ECONOMIES CUT INTO REVENUE BUT HE SAID HE EXPECTED IMPROVED REVENUE PERFORMANCE DURING THE REST OF THIS YEAR THE COMPANY ATTRIBUTED THE NET INCOME TURNAROUND TO LARGE CUTS IN OPERATING EXPENSES WHICH DECLINED TO 425 MILLION FOR THE QUARTER FROM 56 MILLION A YEAR EARLIER THE COMPANY SAID REDUCTIONS IN PERSONNEL CUTBACKS IN RESEARCH AND DEVELOPMENT SPENDING AND THE CONSOLIDATION OF OVERSEAS SUBSIDIARIES ALL CONTRIBUTED TO LOWER OPERATING COSTS 9304230077 930423 BUSINESS BRIEF TURNER BROADCASTING SYSTEM INC HOLDER SUIT SEEKS TO BLOCK BREAKUP OF CABLE COMPANY A SHAREHOLDER LAWSUIT FILED IN STATE COURT IN ATLANTA SEEKS TO BLOCK ANY BREAKUP OF TURNER BROADCASTING SYSTEM INC ARGUING THAT SUCH AN ACTION WOULD BREACH THE FIDUCIARY DUTY OWED TO MINORITY HOLDERS ALTHOUGH TURNER HASN'T CONFIRMED THE DISCUSSIONS PEOPLE FAMILIAR WITH THE SITUATION SAY IT HAS BEEN TALKING WITH TWO MAJOR SHAREHOLDERS TELECOMMUNICATIONS INC AND TIME WARNER INC ABOUT WAYS TO FREE TURNER FROM THEIR CONTROL IN RECENT DAYS HOWEVER THE TALKS APPEAR TO HAVE VEERED AWAY FROM A BREAKUP OF TURNER THE SUIT ARGUES THAT CERTAIN TCI TIME WARNER AND TURNER OFFICERS HAVE USED INSIDE INFORMATION TO PLAN A BREAKUP OF THE CABLE COMPANY FOUNDED BY TED TURNER FILED BY J SLOVITT WHO IS IDENTIFIED ONLY AS A TURNER SHAREHOLDER THE SUIT SEEKS CLASSACTION STATUS A TIME WARNER SPOKESMAN SAID WE FEEL THE SUIT IS WITHOUT MERIT TCI HADN'T ANY COMMENT AND TURNER OFFICIALS COULDN'T BE REACHED 9304230076 930423 BUSINESS BRIEF MAXTOR CORP FISCAL FOURTHQUARTER LOSS IS ATTRIBUTED TO PRICE WARS MAXTOR CORP POSTED A LOSS FOR ITS FISCAL FOURTH QUARTER ENDED MARCH 27 THE SAN JOSE CALIF MAKER OF DATA STORAGE DEVICES SAID SEVERE PRICE COMPETITION IN THE MARKET FOR ITS OLDER PRODUCTS COMBINED WITH HIGHERTHANEXPECTED STARTUP COSTS FOR ITS NEW PRODUCTS CAUSED THE LOSS MAXTOR SAID IT EXPECTS THESE TRENDS TO CONTINUE IN THE CURRENT QUARTER FOR THE QUARTER MAXTOR POSTED A LOSS OF 197 MILLION OR 69 CENTS A SHARE COMPARED WITH YEAREARLIER NET INCOME OF 232 MILLION OR 74 CENTS A SHARE REVENUE ROSE TO 3456 MILLION FROM 300 MILLION THE YEAREARLIER REVENUE INCLUDED 222 MILLION FROM STORAGE DIMENSIONS INC WHICH THE COMPANY SOLD IN DECEMBER FOR THE YEAR MAXTOR POSTED NET OF 461 MILLION OR 146 A SHARE COMPARED WITH 71 MILLION OR 24 CENTS A SHARE THE PREVIOUS YEAR REVENUE WAS 144 BILLION UP 39 FROM 104 BILLION 9304230075 930423 BUSINESS BRIEF ATLANTIC RICHFIELD CO ARCO ALASKA SUBSIDIARY HITS OIL IN EXPLORATORY WELL ATLANTIC RICHFIELD CO'S ARCO ALASKA INC UNIT SAID IT DISCOVERED OIL AT AN EXPLORATORY WELL DRILLED ON THE NORTHERN EDGE OF ALASKA'S PRUDHOE BAY OIL FLOWED AT ABOUT 3000 BARRELS A DAY ON A 43/65INCH OPENING WITH 1050 PSI FLOWING TUBING PRESSURE DURING AN INITIAL FOURHOUR TEST ARCO SAID THE DEPTH OF THE DISCOVERY WASN'T DISCLOSED THE CRUDE OIL IS 35 DEGREE API GRAVITY MORE DRILLING IS NEEDED TO ESTIMATE THE DISCOVERY'S SIZE BUT ARCO SAID IT IS COMPARABLE IN SIZE TO THE NEARBY WEST BEACH FIELD WHERE ESTIMATES OF OIL RANGE FROM 10 MILLION TO 65 MILLION BARRELS ATLANTIC RICHFIELD IS AN OIL AND GAS CONCERN BASED IN LOS ANGELES ARCO AND ITS PARTNER EXXON CORP EACH OWN A 50 INTEREST IN THE NEW WELL 9304230074 930423 BUSINESS BRIEF ARROW ELECTRONICS INC EARNINGS ALMOST DOUBLED 90 IN 1ST PERIOD STOCK RISES SHARES OF ARROW ELECTRONICS INC JUMPED NEARLY 8 AFTER THE COMPANY SAID ITS FIRSTQUARTER EARNINGS ALMOST DOUBLED PARTLY REFLECTING HIGHER SALES IN NORTH AMERICA AND LOWER OPERATING COSTS THE MELVILLE NY DISTRIBUTOR OF ELECTRONIC PARTS AND COMPUTER PRODUCTS SAID NET INCOME WAS 18 MILLION OR 59 CENTS A SHARE COMPARED WITH 93 MILLION OR 38 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 45 TO 5514 MILLION FROM 3787 MILLION BOOSTED BY NORTH AMERICAN SALES WHICH ROSE 17 ALSO NORTH AMERICAN OPERATING EXPENSES AS A PERCENTAGE OF SALES FELL TO 129 THE COMPANY SAID ARROW'S SHARES JUMPED 2375 TO CLOSE AT 33125 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY CONSOLIDATED EARNINGS IN THE LATEST QUARTER INCLUDE SPOERLE ELECTRONIC A MAJOR GERMAN ELECTRONICS DISTRIBUTOR IN WHICH ARROW HOLDS A MAJORITY STAKE 9304230073 930423 PREMIER HOSPITALS SAYS IT WON'T BUY PARKEDAVIS DRUGS BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL WESTCHESTER ILL PREMIER HOSPITALS ALLIANCE INC SAID IT WON'T BUY PRESCRIPTION DRUGS FROM WARNERLAMBERT CO'S PARKEDAVIS UNIT BECAUSE WARNERLAMBERT REFUSED TO PROVIDE DETAILS OF REGULATORY PROBLEMS AT ITS PUERTO RICO OPERATIONS THE COMPANY BUYS PRESCRIPTION DRUGS FOR 130 HOSPITALS THROUGHOUT THE COUNTRY AND HAD PLANNED TO PURCHASE 85 PARKEDAVIS PRODUCTS TOTALING MORE THAN 15 MILLION IN THE YEAR BEGINNING IN JULY SAID WILLIAM MAGRUDER ASSISTANT VICE PRESIDENT OF PREMIER'S PHARMACY PROGRAM PREMIER'S UNUSUAL ACTION WAS PROMPTED BY WARNERLAMBERT'S REFUSAL TO PROVIDE COPIES OF THE FOOD AND DRUG ADMINISTRATION'S INSPECTION REPORTS FOR PUERTO RICO AND THE COMPANY'S RESPONSES TO THE FDA MR MAGRUDER SAID THE COMPANY INSTEAD SENT PREMIER A LETTER SAYING THE PROBLEMS IN PUERTO RICO WERE ESSENTIALLY VALIDATION AND RECORDKEEPING DEFICIENCIES NOT PRODUCT QUALITY IN NATURE IT ADDED THAT RELEASING THE DOCUMENTS WOULD BE CONFUSING AND UNFAIR TO BOTH OF US SINCE MANY OF THE PROBLEMS HAD BEEN CORRECTED WE ASKED TO SEE THE REPORTS SO WE WOULD HAVE A BALANCED PICTURE OF WHAT HAD TRANSPIRED MR MAGRUDER SAID WITHOUT THEM IT LEAVES US TO DRAW OUR OWN CONCLUSIONS ABOUT THE SERIOUSNESS OF THE PROBLEM THE FDA INSPECTIONS WERE IN 1991 AND 1992 THE FDA IS INVESTIGATING DISCREPANCIES IN THE DATA THE COMPANY SUBMITTED ON PRODUCTS MANUFACTURED IN PUERTO RICO IT PUT ON HOLD MARKETING APPLICATIONS FOR PRODUCTS INCLUDING LOPID SR A CHOLESTEROL DRUG AND THE ORAL CONTRACEPTIVE ESTROSTEP THAT WERE TO BE MANUFACTURED AT THE PLANTS UNTIL FURTHER REVIEW OF THE APPLICATIONS ARE COMPLETED IN ADDITION WARNERLAMBERT LAST YEAR RECALLED AT THE WHOLESALE LEVEL SOME PRODUCTS MADE IN PUERTO RICO WARNERLAMBERT BASED IN MORRISTOWN NJ AND SOME CURRENT AND FORMER EMPLOYEES HAVE RECENTLY BEEN SERVED WITH SUBPOENAS BY THE US ATTORNEY'S OFFICE IN MARYLAND TO APPEAR BEFORE A FEDERAL GRAND JURY IN BALTIMORE THE COMPANY DISCLOSED IN ITS ANNUAL FILING WITH THE SECURITIES AND EXCHANGE COMMISSION RECENTLY THE GRAND JURY IS CONDUCTING AN INQUIRY RELATED TO COMPLIANCE WITH FDA REGULATIONS PRIMARILY IN ITS PUERTO RICO OPERATIONS BUT ALSO INCLUDING OTHER US OPERATIONS ACCORDING TO A SPOKESMAN HE SAID WARNERLAMBERT IS COOPERATING WITH THE INVESTIGATION A SPOKESMAN SAID SEPARATELY WARNERLAMBERT SAID IT EXPECTS TO PRICE ITS TREATMENT FOR ALZHEIMER'S DISEASE COGNEX AT 1000 A YEAR IN A MEETING WITH DRUG INDUSTRY ANALYSTS IN NEW YORK EARLIER THIS WEEK IT SAID COGNEX SHOULD BE ON THE MARKET IN JUNE PENDING FDA APPROVAL THE WARNERLAMBERT SPOKESMAN SAID OTHER PARKEDAVIS CUSTOMERS HAVEN'T CANCELED CONTRACTS OR THREATENED TO DO SO BECAUSE OF THE COMPANY'S PROBLEMS IN PUERTO RICO 9304230072 930423 BUSINESS BRIEF INFORMIX CORP SOFTWARE COMPANY REPORTS A PROFIT FOR FIRST QUARTER INFORMIX CORP MENLO PARK CALIF CONTINUING AN IMPRESSIVE REBOUND REPORTED FIRSTQUARTER NET INCOME OF 115 MILLION OR 34 CENTS A SHARE THE EARNINGS BEAT WALL STREET EXPECTATIONS WHICH GENERALLY HAD PROJECTED PERSHARE PROFIT FOR THE DATABASE MANAGEMENT SOFTWARE MAKER IN THE RANGE OF 25 TO 28 CENTS THE COMPANY HAS BENEFITED FROM THE STRONG DEMAND FOR DATABASE PRODUCTS THAT RUN ON UNIX OPERATING SYSTEMS IN THE YEAREARLIER QUARTER INFORMIX EARNED 114 MILLION OR 37 CENTS ON REVENUE OF 591 MILLION INCLUDING A 10 CENTSASHARE ONETIME GAIN RELATED TO A CONTRACT WITH BOEING CO THE YEARAGO FIGURES ALSO ARE ADJUSTED FOR A 2FOR1 STOCK SPLIT PAID LAST SEPTEMBER INFORMIX SHARES HAVE EXPLODED FROM A SPLITADJUSTED 131 IN JANUARY 1992 TO YESTERDAY'S CLOSE OF 31375 UP 3125 IN OVERTHECOUNTER TRADING ITS MARKET CAPITALIZATION HAS SURGED ROUGHLY 23FOLD SINCE JANUARY 1992 TO ABOUT 950 MILLION AS RECENTLY AS 1990 INFORMIX HAD A NET LOSS OF 464 MILLION AS A RESULT OF BOOKKEEPING PROBLEMS AND THE LINGERING EFFECTS OF A BADLYMANAGED MERGER 9304230071 930423 BUSINESS BRIEF TEXTRON INC COMPANY POSTS 828 MILLION IN EARNINGS FOR FIRST QUARTER TEXTRON INC CITING IMPROVED PERFORMANCE IN ITS FINANCIAL SERVICES AND COMMERCIAL PRODUCTS BUSINESSES REPORTED FIRSTQUARTER EARNINGS OF 828 MILLION OR 92 CENTS A SHARE ON AN 85 SALES GAIN IN THE YEAREARLIER QUARTER TEXTRON BASED IN PROVIDENCE RI HAD A LOSS OF 6101 MILLION OR 690 A SHARE AFTER A CHANGE IN ACCOUNTING FOR INCOME TAX AND A CHARGE OF 6795 MILLION OR 769 A SHARE TO ACCOUNT FOR POSTRETIREMENT BENEFITS SALES ROSE TO 216 BILLION FROM 199 BILLION IN THE YEARAGO PERIOD TEXTRON SAID SALES WERE BOOSTED BY INCREASED ORDERS FROM US CAR COMPANIES FOR AUTOMOTIVE COMPONENTS FROM ITS COMMERCIAL PRODUCTS BUSINESS BUSINESS WAS ALSO STRONG IN ITS FINANCIAL SERVICES SECTOR TEXTRON SAID TEXTRON ALSO MAKES AIRPLANES AND IS A MAJOR DEFENSE CONTRACTOR THE COMPANY SAID IT EXPECTS IMPROVED PERFORMANCE IN ITS AEROSPACE TECHNOLOGY BUSINESS LATER THIS YEAR DUE TO AN ANTICIPATED INCREASE IN SALES OF COMMERCIAL HELICOPTERS AND BUSINESS JETS TEXTRON SAID IT REDUCED ITS WORK FORCE BY 3000 IN THE PAST 12 MONTHS TO 52800 AT THE END OF THE CURRENT QUARTER 9304230070 930423 BUSINESS BRIEF MATTEL INC FIRSTQUARTER NET INCOME SOARED HELPED BY A GAIN MATTEL INC'S FIRSTQUARTER NET INCOME JUMPED TO 329 MILLION OR 32 CENTS A SHARE REFLECTING A ONETIME GAIN FROM NEW ACCOUNTING PRINCIPLES SALES ROSE 6 TO 346 MILLION FROM 326 MILLION A YEAR AGO EXCLUDING THE GAIN OF 146 MILLION MATTEL POSTED NET OF 183 MILLION OR 18 CENTS A SHARE THE GAIN WAS RELATED TO ACCOUNTING CHANGES FOR INCOME TAXES AND RETIREE HEALTH BENEFITS NET INCOME IN THE YEARAGO QUARTER WAS 148 MILLION OR 14 CENTS A SHARE MATTEL RESTATED ITS 1992 PERSHARE EARNINGS TO REFLECT A 3FOR2 STOCK SPLIT OUR CONTINUING GROWTH IS BEING LED BY STRONG WORLDWIDE DEMAND FOR OUR CORE BARBIE DISNEY AND HOT WHEELS PRODUCTS SAID JOHN W AMERMAN CHAIRMAN AND CHIEF EXECUTIVE OF THE EL SEGUNDO CALIF TOY MAKER MATTEL SAID FIRSTQUARTER TOY SALES EXCLUDING NINTENDO PRODUCTS ROSE 13 WHILE INTERNATIONAL SALES INCREASED 18 9304230069 930423 MARKETING & MEDIA NOTED CABLE TV CABLE NEWS NETWORK SIGNED TALKSHOW HOST LARRY KING TO A NEW SIXYEAR CONTRACT FINANCIAL TERMS WEREN'T DISCLOSED UNDER THE CONTRACT MR KING IS SLATED TO HOST A SIXTH NIGHT OF PROGRAMMING IN ADDITION TO LARRY KING LIVE USUALLY THE TOPRATED SHOW OF THE TURNER BROADCASTING SYSTEM INC UNIT WHO'S NEWS KIII COMMUNICATIONS CORP NAMED RICHARD LEBRASSEUR 50 TO THE NEW POSITION OF PRESIDENT OF ITS WEEKLY READER CORP UNIT HE WAS SENIOR VICE PRESIDENT AND GENERAL MANAGER OF THE COMPANY WHICH PUBLISHES THE CHILDREN'S NEWSPAPER WEEKLY READER 9304230068 930423 BUSINESS BRIEF FIRST NATIONAL CORP HOLDING COMPANY INVESTORS AGREE ON RECAPITALIZATION FIRST NATIONAL CORP SAID IT REACHED AN AGREEMENT IN PRINCIPLE WITH AN INVESTOR GROUP FOR THE RECAPITALIZATION OF ITS FIRST NATIONAL BANK UNDER THE PLAN SHAREHOLDERS' INTEREST WOULD LIKELY BE REDUCED TO LESS THAN 5 OF THE NEW OWNERSHIP FIRST NATIONAL SAID FIRST NATIONAL WOULDN'T IDENTIFY THE INVESTORS EXCEPT TO SAY IT IS A GROUP BASED OUTSIDE CALIFORNIA THE SAN DIEGO HOLDING COMPANY SAID THE TRANSACTION IS IN ACCORDANCE WITH ITS FORMAL AGREEMENT WITH THE OFFICE OF THE COMPTROLLER OF THE CURRENCY NO DETAILS WERE DISCLOSED FIRST NATIONAL SAID THE PROPOSAL IS SUBJECT TO VARIOUS CONDITIONS INCLUDING REGULATORY AND SHAREHOLDER APPROVALS SEPARATELY FIRST NATIONAL SAID IT HAD A FIRSTQUARTER LOSS OF 16 MILLION OR 46 CENTS A SHARE COMPARED WITH A LOSS OF 51 MILLION OR 142 A SHARE A YEAR EARLIER 9304230067 930423 ECONOMY UNEMPLOYMENT CLAIMS UP WASHINGTON NEW CLAIMS FOR UNEMPLOYMENT BENEFITS ROSE 26000 IN THE WEEK ENDED APRIL 17 THE LABOR DEPARTMENT SAID THE RISE TO 359000 FOLLOWED TWO WEEKS OF DECLINES BUT DOES NOT NECESSARILY SPELL TROUBLE ON THE JOB FRONT CLAIMS USUALLY RISE AFTER A HOLIDAY WEEK WITH FEWER DAYS TO FILE GOOD FRIDAY FELL THE WEEK BEFORE AND SOME OFFICES WERE CLOSED THE LARGEST INCREASE IN CLAIMS DURING THE WEEK CAME IN MISSOURI WHERE OFFICIALS BLAMED LAYOFFS IN THE SERVICE AND TRANSPORTATION INDUSTRIES THE LARGEST DROP WAS IN CALIFORNIA WHERE OFFICIALS SAID THERE WERE FEWER LAYOFFS IN CONSTRUCTION FOOD AND FARM INDUSTRIES 9304230066 930423 BUSINESS BRIEF WESTMIN RESOURCES LTD COMPANY PLANS LOCKOUT AT MYRA FALLS OPERATION WESTMIN RESOURCES LTD UNABLE TO REACH AN AGREEMENT ON A NEW CONTRACT SAID IT WILL LOCK OUT 364 UNIONIZED EMPLOYEES TOMORROW AT THE COMPANY'S MYRA FALLS OPERATIONS IN BRITISH COLUMBIA A CONTRACT WITH LOCAL 3019 OF THE CANADIAN AUTO WORKERS EXPIRED MARCH 31 AND NO TALKS ARE SCHEDULED WESTMIN WANTS WAGE AND BENEFIT CONCESSIONS FROM THE UNION WHICH THE UNION REFUSES SAID WILLIAM DIMENT MINE MANAGER WITH THE VANCOUVER BRITISH COLUMBIA COMPANY UNION SPOKESMAN PETE SMITH SAID THAT DESPITE THREE YEARS OF LOSSES POSTED BY WESTMIN THERE IS NO NEED FOR CONCESSIONS WESTMIN OWNS A LARGE UNDEVELOPED ORE BODY THAT WILL GENERATE FUTURE PROFITS HE SAID THE LOCKOUT WILL HALT PRODUCTION AT MYRA FALLS WHICH PRODUCES ZINC COPPER AND SOME PRECIOUS METALS AND CONTRIBUTES MOST OF THE COMPANY'S REVENUE WESTMIN REPORTED A 1992 LOSS OF 181 MILLION CANADIAN DOLLARS US144 MILLION ON REVENUE OF C1057 MILLION THE COMPANY SAID THIS WEEK THAT IT WOULD CUT 73 JOBS AND SUSPEND PRODUCTION AT ITS LYNX MINE PART OF THE MYRA FALLS OPERATION 9304230065 930423 BUSINESS BRIEF MANVILLE CORP FIRM POSTS 1STPERIOD NET OF 226 MILLION AFTER GAINS MANVILLE CORP REPORTED FIRSTQUARTER NET INCOME OF 226 MILLION OR 18 CENTS A SHARE AFTER A 314 MILLION GAIN FROM AN INCOME TAX REFUND AND A 36 MILLION GAIN FROM FOREIGN TAX CHANGES IN THE YEARAGO QUARTER THE COMPANY IN DENVER REPORTED NET INCOME OF 45 MILLION OR FOUR CENTS A SHARE BEFORE THE ONETIME GAINS THE COMPANY'S FIRSTQUARTER 1993 LOSS WAS ABOUT 43 MILLLION OR THREE CENTS A SHARE SALES ROSE ABOUT 2 TO 5085 MILLION FROM 4969 MILLION THE COMPANY'S RIVERWOOD INTERNATIONAL CORP UNIT REPORTED HIGHER SALES BUT OPERATING PROFIT SLIPPED 32 DUE TO WEAK PRICES AND WEAK DEMAND FOR LINERBOARD AND COATED BOARD PRODUCTS HIGHER MARKETING EXPENSES AND UNFAVORABLE FOREIGN EXCHANGE RATES HOWEVER WOOD PRODUCTS RESULTS WERE BETTER THAN THEY WERE IN THE YEAREARLIER QUARTER BECAUSE OF HIGHER LUMBER PRICES 9304230064 930423 REVIEW & OUTLOOK EDITORIAL A COLD TRADE WAR THINK THE COLD WAR IS OVER THINK AGAIN IT'S COMING BACK FROM THE CRYPT NOW EUPHEMIZED AS TRADE NEGOTIATIONS WE'RE SUPPOSED TO BE RELIEVED THAT REPRESENTATIVES FROM THE US AND BRUSSELS WERE ASSURING US WEDNESDAY THAT A TRADE WAR HAS BEEN AVERTED BUT THE NEW WORLD TRADE ORDER THAT US TRADE REPRESENTATIVE MICKEY KANTOR AND HIS COUNTERPARTS IN EUROPE ARE BUILDING OFFERS COLD COMFORT ESPECIALLY SINCE THE US AND THE EUROPEANS ARE DISCUSSING SOME SORT OF ANTIJAPANESE ALLIANCE LIKE THE OLD SUPERPOWER RIVALRY THE TRADE ORDER SEEMS TO OFFER MUCH INSECURITY AND REQUIRE A COSTLY PREOCCUPATION WITH DENYING THE OTHER SIDE ANY ADVANTAGE UNDER WEDNESDAY'S TRADECONTROL AGREEMENT THE TWO SIDES WILL ELIMINATE RESTRICTIONS ON GOVERNMENT PURCHASING OF HEAVY ELECTRICAL ENGINEERING EQUIPMENT BUT NO ACCORD IN THE KEY AREA OF TELECOMMUNICATIONS EQUIPMENT WAS REACHED THE US SAID IT WOULD GO AHEAD WITH ABOUT 39 MILLION OF SANCTIONS AGAINST EC TELECOMMUNICATIONS FIRMS THE EC IS LIKELY TO RESPOND IN KIND FROM THERE IT COULD ESCALATE FRANCE IS NOT LIKELY TO BE AS PATIENT AS THE NETHERLANDS THE UK AND GERMANY ABOUT ACCEPTING SANCTIONS AND THE WHOLE TONE OF THE PAST SEVERAL MONTHS DOESN'T BODE WELL FOR THE PROSPECTS OF A GATT AGREEMENT ANYTIME SOON AS WE WATCH THE TRADE RIVALS MANEUVER ACROSS THE TABLE FROM EACH OTHER THE COLD WAR DOCTRINE THAT COMES TO MIND IS MUTUALLY ASSURED DESTRUCTION OR MAD THE MAD DOCTRINE HELD THAT IF A NATION THREATENED ITS OPPONENT WITH MASSIVE NUCLEAR RETALIATION THE OPPONENT WOULD BE DETERRED FROM STRIKING LAUNCHING A GET TOUGH TRADE POLICY A FEW MONTHS BACK MR KANTOR SEEMED TO THINK MAD OFFERED THE BEST CHANCE OF COERCING THE EC INTO COMPLYING WITH US DEMANDS THAT IT OPEN ITS MARKETS TO MORE US BUSINESS PARTICULARLY IN GOVERNMENT CONTRACTS ANTIDUMPING MEASURES GOVERNMENT PURCHASING RESTRICTIONS AND THE LIKE WERE BRANDISHED AS PROOF THAT THE US MEANT BUSINESS CONGRESS CHEERED BUT THEN THE EC BEGAN TO MAKE SOME THREATS OF ITS OWN AND THE US HAD TO THINK ABOUT JUST HOW MUCH PAIN IT WAS WILLING TO INFLICT DURING THE COLD WAR MADNESS WAS SIMILARLY DECLARED PASSE BECAUSE WHILE IT PRESENTED A DREADFUL THREAT IT WAS NEVER REALLY A CREDIBLE ONE THIS CAUSED MR KANTOR TO GO NUTS NUTS OR NUCLEAR UTILIZATION TARGET STRATEGY REPLACED MAD DURING THE COLD WAR AND IN SHORT MEANS LIMITED STRIKES THE MODERN TRADE NUT BELIEVES THAT IF YOUR TRADE PARTNER PROTECTS SOME ASPECT OF HIS MARKET THEN YOU CAN RETALIATE BY PENALIZING HIM AN EQUAL DEGREE THIS ALLOWS TRADE NUTS TO FEEL THEY ARE BEING FAIR FOR INSTANCE MR KANTOR SAID THAT THE SANCTION AMOUNT REFLECTED WHAT EUROPEAN TELECOMMUNICATIONS CONTRACTS US COMPANIES WERE LOSING BECAUSE OF RESTRICTIONS INSTEAD OF A PHILOSOPHY OF OPEN MARKETS THE US HAS PLACED A LAWYERLY PREMIUM ON ABSOLUTE EQUALITY THIS MEANS THAT WHETHER THE DOOR TO MARKETS REMAINS OPEN SHUT OR REVOLVING MATTERS LESS THAN MAKING SURE THAT THE SAME CONDITIONS EXIST ON BOTH SIDES OF THE ATLANTIC AND PACIFIC AND SOUTH OF THE RIO GRANDE THIS IS THE PHILOSOPHY OF TRADE RELATIVITY ALL GAINS AND LOSSES ARE RELATIVE TO THAT ON THE OTHER SIDE EVEN IF THE CURRENT SANCTION EXCHANGE LEAVES FEW CASUALTIES A PRECEDENT HAS BEEN SET IT SUBMERGES AN OVERALL TRADE PHILOSOPHY PLACING DISPROPORTIONATE EMPHASIS ON INDIVIDUAL CASES IT ALSO FOSTERS UNPREDICTABILITY WHICH IS TOUGH ON BUSINESS ONE 40YEAR COLD WAR WAS ENOUGH LET'S NOT START ANOTHER ONE 9304230063 930423 BUSINESS BRIEF METROPOLITAN FINANCIAL CORP SPINOFF OF REALESTATE UNIT WINS APPROVAL FROM BOARD METROPOLITAN FINANCIAL CORP MINNEAPOLIS SAID ITS BOARD APPROVED A PLAN TO SPIN OFF THE COMPANY'S REAL ESTATE SALES AND BROKERAGE SUBSIDIARY EDINA REALTY INC THE BANKING CONCERN SAID SHAREHOLDERS AS OF THE RECORD DATE WHICH WILL BE SOMETIME IN THE FOURTH QUARTER WILL RECEIVE SEVEN SHARES OF EDINA REALTY STOCK FOR EVERY 100 SHARES OF METROPOLITAN FINANCIAL STOCK THEY OWN EDINA REALTY WILL HAVE TWO MILLION SHARES OUTSTANDING AFTER THE DISTRIBUTION METROPOLITAN FINANCIAL SAID THE SPINOFF WHICH IS EXPECTED TO BE TAXFREE WILL ALSO INCLUDE ITS TITLE CLOSING COMPANY EQUITY TITLE SERVICES INC WHICH WILL BECOME A SUBSIDIARY OF EDINA REALTY SUBSEQUENT TO THE TRANSACTION THE COMPANY SAID THE SPINOFF GIVES IT FLEXIBILITY TO OBTAIN MULTIPLETHRIFT HOLDING COMPANY STATUS AS A MEANS TO FACILITATE FURTHER GROWTH AND PROFITABILITY THE SPINOFF IS EXPECTED TO BE COMPLETED BEFORE YEAR'S END THE COMPANY SAID 9304230062 930423 INTERNATIONAL BRIEF ROCHE HOLDING AG COMPANY'S CHAIRMAN MAKES FAVORABLE PREDICTION FOR '93 ROCHE HOLDING AG WILL PERFORM WELL THIS YEAR DESPITE INCREASING PRESSURE ON DRUG PRICES BY COSTCONSCIOUS GOVERNMENTS CHAIRMAN FRITZ GERBER PREDICTED AT THE SWISS PHARMACEUTICALS AND CHEMICAL COMPANY'S ANNUAL MEETING IN THE FIRST QUARTER ROCHE ANNOUNCED A CONSOLIDATED SALES INCREASE OF 7 TO 35 BILLION SWISS FRANCS 24 BILLION UP FROM 327 BILLION FRANCS IN THE CORRESPONDING PERIOD OF 1992 PHARMACEUTICAL SALES LED THE INCREASE WITH A 10 JUMP TO 19 BILLION FRANCS FROM 17 BILLION FRANCS FOLLOWED BY DIAGNOSTICS WITH A 7 RISE TO 418 MILLION FRANCS FROM 392 MILLION FRANCS SALES OF VITAMINS AND FINE CHEMICALS WERE 3 HIGHER AT 795 MILLION FRANCS UP FROM 771 MILLION FRANCS IN GERMANY WHERE NEW GOVERNMENT COSTCUTTING MEASURES HAVE PLAYED HAVOC WITH DRUG SALES THIS YEAR MR GERBER REPORTED A DROP IN PHARMACEUTICAL SALES IN THE FIRST QUARTER OF ONLY 10 COMPARED WITH 20 FOR THE GERMAN PHARMACEUTICAL INDUSTRY AS A WHOLE ROCHE DOESN'T PUBLISH QUARTERLY PROFIT FIGURES HOWEVER MR GERBER SAID THAT THE YEAR HAS BEGUN WELL 9304230061 930423 MONEY FUND ASSETS ROSE IN LATEST WEEK WASHINGTON MONEY MARKET MUTUAL FUND ASSETS ROSE BY 430 BILLION TO 58908 BILLION FROM 58478 BILLION FOR THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 632 RETAIL MONEY MARKET MUTUAL FUNDS FELL BY 2957 MILLION TO 39081 BILLION THE TRADE GROUP SAID ASSETS OF 396 TAXABLE MONEY MARKET FUNDS IN THE RETAIL CATEGORY ROSE BY 147 BILLION TO 30974 BILLION ASSETS OF 236 RETAIL TAXEXEMPT FUNDS FELL BY 177 BILLION TO 8107 BILLION ASSETS OF THE 261 INSTITUTIONAL MONEY MARKET FUNDS ROSE BY 460 BILLION TO 19828 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 212 TAXABLE MONEY MARKET FUNDS ROSE BY 537 BILLION TO 17925 BILLION ASSETS OF 49 TAXEXEMPT FUNDS FELL BY 7639 MILLION TO 1903 BILLION 9304230060 930423 BUSINESS BRIEF STERIS CORP OPERATING PROFIT SHOULD TOP FISCAL 4THPERIOD ESTIMATES STERIS CORP BENEFITING FROM HOSPITALS' NEED TO STERILIZE ADVANCED EQUIPMENT FAST SHOULD EXCEED ANALYSTS' ESTIMATES FOR FISCAL FOURTHQUARTER OPERATING PROFIT OF EIGHT CENTS A SHARE SAID BILL SANFORD CHAIRMAN AND CHIEF EXECUTIVE THE ESTIMATE FOR THE QUARTER ENDED MARCH 31 EXCLUDES AN EXPECTED GAIN FROM TAXLOSS CARRYFORWARD A YEAR EARLIER THE MENTOR OHIO MAKER OF MEDICAL INSTRUMENT STERILIZATION SYSTEMS REPORTED NET INCOME OF 549000 OR NINE CENTS A SHARE INCLUDING A TAXLOSS CARRYFORWARD OF 220000 OR FOUR CENTS A SHARE IN AN INTERVIEW MR SANFORD SAID THE COMPANY EXCEEDED ESTIMATES FOR FOURTHQUARTER SALES OF 78 MILLION COMPARED WITH 48 MILLION A YEAR EARLIER STERIS ALSO SHOULD BEAT ANALYSTS' ESTIMATES FOR PROFIT OF 18 CENTS A SHARE FOR THE YEAR EXCLUDING THE GAIN THAT COMPARES WITH NET INCOME OF 36000 OR ONE CENT A SHARE FOR FISCAL 1992 WHICH INCLUDED A GAIN OF 14000 EQUAL TO LESS THAN ONE CENT A SHARE 9304230059 930423 COMMODITIES NATURALGAS RALLY CONTINUES AS RECORD TRADING BELIES FORECASTS THAT PRICES MAY TOP OUT SOON BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL THE NATURALGAS RALLY ROARED ON ALTHOUGH SOME TRADERS PREDICTED A PRICING CORRECTION WILL COME AS SOON AS NEXT WEEK WITH YESTERDAY'S FRANTIC BUYING THE SOCALLED PROMPTMONTH GAS CONTRACT TESTED TRADING HIGHS ON THE NEW YORK MERCANTILE EXCHANGE AFTER RISING 191 CENTS WEDNESDAY THE FUTURES PRICE OF GAS FOR MAY DELIVERY CLIMBED AN ADDITIONAL 95 CENTS YESTERDAY ON RECORD TRADING VOLUMES TO SETTLE AT 2728 A MILLION BRITISH THERMAL UNITS OR APPROXIMATELY 1000 CUBIC FEET THE INTRADAY HIGH FOR THE MAY CONTRACT WAS 274 THAT AND THE SETTLEMENT PRICE WERE WITHIN PENNIES OF THE HISTORICAL HIGHS FOR PROMPTMONTH GAS TRADED ON THE NEW YORK MERCANTILE EXCHANGE ON SEPT 23 THE CONTRACT HAD SETTLED AT 2743 AFTER REACHING A RECORD INTRADAY HIGH OF 279 A MILLION BTUS GAS FOR JUNE DELIVERY ALSO WAS UP AGAIN YESTERDAY BUT IT ROSE ONLY 53 CENTS TO 2512 LEAVING A WIDE SPREAD BETWEEN IT AND THE MAY CONTRACT SOME OF THE RUNUP IN GAS FUTURES IS DUE TO TECHNICAL REASONS TRADERS SAID AS GAS FUTURES ROSE THEY BROKE THROUGH PSYCHOLOGICALLY IMPORTANT LEVELS TRIGGERING FURTHER BUYING ALSO THE SOCALLED BID WEEK IN WHICH DISTRIBUTORS MAKE THEIR NOMINATIONS PURCHASERS' SUPPLY REQUESTS FOR SPOTGAS CONTRACTS OVER THE NEXT MONTH HAS BEGUN AND THERE IS A GROWING PERCEPTION THAT SUPPLIES MAY BE TIGHTENING DEMAND FOR THE FUEL IS INCREASING ALONG WITH ECONOMIC RECOVERY IN THE US ALSO COLDER WEATHER THIS YEAR HAS SIPHONED OFF A LOT OF GAS THAT WOULD BE IN STORAGE BY NOW ADDITIONAL SUPPLIES ARE NEEDED TO REBUILD STORAGE LEVELS BUT SOME TRADERS SUGGESTED THAT GAS PRICES MAY BE TOPPING OUT TODAY'S TRADING MARKS THE EXPIRATION OF THE MAY FUTURES CONTRACT ALSO HELPING TO TRIGGER A NOTE OF CAUTION IS THAT SOME SEE PARALLELS BETWEEN GAS AND LUMBER IN THE PRICE RUNUPS EXCEPT THAT SO FAR THIS YEAR THERE HASN'T BEEN ANY PRICING CORRECTION FOR GAS THE BULL MARKET IS STILL INTACT SAID THOMAS BLAKESLEE AN ENERGY ANALYST WITH THE NEW YORK COMMODITY BROKERAGE FIRM OF BRODY WHITE & CO BUT ONCE MAY GAS EXPIRES YOU CAN VERY EASILY SEE THIS MARKET GO DOWN HOWEVER HE STILL EXPECTS GAS FUTURES TO REACH 3 SOMETIME THIS YEAR MEANWHILE PETROLEUM FUTURES GENERALLY DECLINED YESTERDAY IN NEW YORK FUTURES TRADING CRUDE OIL FOR JUNE DELIVERY SETTLED 22 CENTS A BARREL LOWER AT 2015 BUT THERE ARE INCREASING SUGGESTIONS THAT WORLD OIL PRICES SHOULD HOLD RELATIVELY FIRM NOW THAT THERE HAVE BEEN MAJOR CUTBACKS IN PRODUCTION BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES OPEC'S OUTPUT HAS FALLEN SHARPLY TO AROUND 24 MILLION BARRELS A DAY DOWN FROM FEBRUARY'S 254 MILLION YESTERDAY THE LONDONBASED CENTRE FOR GLOBAL ENERGY STUDIES REPORTED THAT WHILE OPEC HASN'T SUCCEEDED IN SLASHING OUTPUT TO ITS TARGETED 236 MILLION BARRELS A DAY THE CUT OF MORE THAN ONE MILLION APPEARS TO HAVE BEEN SUFFICIENT TO BALANCE THE MARKET LIVESTOCK AND MEATS PORKBELLY FUTURES PRICES SURGED THE DAILY PRICEMOVE LIMIT AFTER THE US AGRICULTURE DEPARTMENT REPORTED MUCH LOWERTHANEXPECTED INPUT OF FRESH MEAT INTO COLD STORAGE THE USDA REPORTED A NET INWARD MOVEMENT OF ONLY 359000 POUNDS OF PORK BELLIES WHICH ARE UNCURED BACON INTO STORAGE DURING THE MONTH OF MARCH ANALYSTS YESTERDAY WERE OPENLY SKEPTICAL OF THE GOVERNMENT REPORT THEY SAID WEEKLY REPORTS OF THE MOVEMENT OF PORK BELLIES INTO STORAGE DURING MARCH SEEMED TO CONTRADICT THE USDA'S FIGURE SUBSTANTIALLY YET TRADERS IN THE CHICAGO MERCANTILE EXCHANGE'S PORKBELLY PIT BID PRICES HIGHER YESTERDAY TRYING TO LIQUIDATE SHORT POSITIONS OR WAGERS THAT PRICES WOULD DECLINE SAID CHARLES LEVITT LIVESTOCK ANALYST FOR SHEARSON LEHMAN BROTHERS PORK BELLIES FOR MAY DELIVERY WERE UP TWO CENTS TO 4877 CENTS A POUND PRECIOUS METALS GOLD FUTURES PRICES FIRMED ON CUTS IN GERMAN INTEREST RATES AND ON MARKET CONCERN ABOUT THE OUTCOME OF SUNDAY'S REFERENDUM IN RUSSIA TRADERS SAID ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR JUNE DELIVERY EDGED UP 50 CENTS TO SETTLE AT 34120 AN OUNCE LOWER GERMAN RATES MAKE INVESTMENT IN MARKDENOMINATED ASSETS LESS ATTRACTIVE AND RECENTLY HAVE SPURRED INVESTMENT DEMAND FOR GOLD PARTICULARLY IN EUROPE SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH IN NEW YORK A GENERAL CUT IN EUROPEAN RATES IS CONSTRUCTIVE FOR GOLD FUTURES PRICES HE SAID TRADERS SAID THAT THE PROSPECT HOWEVER UNLIKELY OF VIOLENCE BREAKING OUT DURING OR AFTER SUNDAY'S REFERENDUM ON RUSSIAN PRESIDENT BORIS YELTSIN'S RULE ALSO WAS PROVIDING SOME SUPPORT FOR GOLD AS A SAFE INVESTMENT HAVEN IN OTHER PRECIOUS METALS ACTIVITY SILVER FOR JULY DELIVERY SETTLED 11 CENTS HIGHER AT 3944 AN OUNCE ON THE COMEX ON THE NEW YORK MERCANTILE EXCHANGE JULY PLATINUM CLIMBED 170 TO 36990 AN OUNCE WHILE JUNE PALLADIUM SKIDDED 130 TO 11625 AN OUNCE 9304230058 930423 BLUE JAYS OWNERS JOIN BID FOR A TORONTO NBA TEAM TORONTO JOHN LABATT LTD AND CANADIAN IMPERIAL BANK OF COMMERCE OWNERS OF LAST YEAR'S WORLD SERIES CHAMPION TORONTO BLUE JAYS JOINED A BID TO BRING PROFESSIONAL BASKETBALL TO TORONTO PALESTRA GROUP WHICH APPLIED FOR A NATIONAL BASKETBALL ASSOCIATION FRANCHISE LAST OCTOBER SAID THE THREE PARTNERS WILL BE EQUAL OWNERS IN THE FRANCHISE IF IT'S GRANTED BY THE NBA THE NBA WILL CONSIDER THE GROUP'S BID NEXT WEEK BUT PALESTRA GROUP PRESIDENT JOEL ROSE SAID HE DOESN'T EXPECT A FINAL DECISION UNTIL JUNE PALESTRA IS COMPETING WITH OTHER BIDS IN TORONTO VANCOUVER BRITISH COLUMBIA AND TAMPA BAY FLA JOHN LABATT AND CANADIAN IMPERIAL BANK BRING VAST EXPERIENCE IN TORONTO'S SPORTS AND ENTERTAINMENT MARKET MR ROSE SAID JOHN LABATT A LONDON ONTARIO BREWING AND ENTERTAINMENT CONCERN OWNS 90 OF THE BLUE JAYS CANADIAN IMPERIAL BANK OF TORONTO OWNS THE REST 9304230057 930423 TRADE CENTER LEASE SIGNED THE SAN FRANCISCO BANK THE FIRST MAJOR NEW TENANT AT THE COMPLEX SINCE THE FEBRUARY BOMB ATTACK THERE SAID IT HAD RECEIVED NO SPECIAL FINANCIAL INDUCEMENTS IN THE WAKE OF THE BLAST WE HAD MADE OUR DEAL BEFORE THE BOMB WENT OFF SAID DAN COSTELLO HEAD OF BANKAMERICA'S CORPORATE REAL ESTATE DIVISION THE BOMBING DOESN'T AFFECT THE ECONOMICS OF THE DEAL THE BOMB JUST CAUSED US TO STEP BACK AND TAKE ANOTHER LOOK AT THE SAFETY THE IMPROVED EMERGENCY LIGHTING AND PUBLIC ADDRESS SYSTEMS AND TIGHTENED SECURITY HE SAID WILL MAKE IT THE SAFEST BUILDING IN NEW YORK WITH TAX INCENTIVES FROM THE CITY AND STATE AND TENANT IMPROVEMENT ALLOWANCES FROM THE BUILDING'S OWNER THE PORT AUTHORITY OF NEW YORK & NEW JERSEY BANKAMERICA WILL PAY AN EFFECTIVE RENT OF SLIGHTLY LESS THAN 20 A SQUARE FOOT ACCORDING TO PEOPLE FAMILIAR WITH THE DEAL NEITHER BANKAMERICA NOR THE PORT AUTHORITY WOULD COMMENT ON THE TERMS 9304230056 930423 CREDIT MARKETS MOST TREASURYS RISE SLIGHTLY IN TRENDLESS SESSION MARKED BY THE ABSENCE OF INSTITUTIONAL INVESTORS BY GENE COLTER AND ABBY SCHULTZ STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE TREASURY'S 30YEAR BOND STUMBLED OUT OF THE GATE YESTERDAY BUT MANAGED TO RECOVER BY DAY'S END AS MOST TREASURY SECURITIES ENDED SLIGHTLY HIGHER THE BENCHMARK 30YEAR BOND ENDED UNCHANGED AT 101 29/32 TO YIELD 674 THE 10YEAR NOTE CLOSED WITH A GAIN OF 1/32 AT 102 29/32 TO YIELD 585 UNCHANGED FROM WEDNESDAY MEANWHILE MANY EUROPEAN GOVERNMENT BONDS RALLIED YESTERDAY IN RESPONSE TO CUTS IN SHORTTERM INTEREST RATES BY THE GERMAN CENTRAL BANK FOR ALL THE HUFFING AND PUFFING IN THE EARLY GOING TRADERS SAID YESTERDAY ESSENTIALLY WAS ANOTHER TRENDLESS SESSION IN THE US TREASURY MARKET IN WHICH INSTITUTIONAL INVESTORS WERE LOATH TO PARTICIPATE TREASURY PLAYERS IN LONDON HAD BEEN SELLING THE 30YEAR BOND OVERNIGHT WHEN THE US SESSION OPENED TRADERS AT SOME WALL STREET FIRMS THAT HAVE TAKEN ON BEARISH COLORINGS USED A TWOPRONGED EXCUSE TO CONTINUE THAT SELLING FIRST A PLUNGE IN THE DOLLAR OVERSEAS AGAINST THE JAPANESE YEN HAD SOME DEALERS WORRIED THAT JAPANESE INVESTORS WOULD BEGIN SELLING US TREASURYS WHEN THE DOLLAR FALLS AGAINST THE YEN JAPANESE HOLDERS OF DOLLARDENOMINATED SECURITIES STAND TO LOSE MONEY WHEN THEY CONVERT THEIR RETURNS BACK INTO YEN I DON'T THINK THAT'S TOO WELLFOUNDED A FEAR SAID BILL STREEP A GOVERNMENT SECURITIES TRADER AT NATWEST FINANCIAL MARKETS GROUP OF A POSSIBLE SELLOFF BY JAPANESE INVESTORS THE FEAR OF JAPANESE INVESTORS SELLING THEIR US HOLDINGS AND DRIVING DOWN PRICES HAS BEEN AROUND FOR YEARS POINTED OUT CHERYL KATZ A FINANCIAL MARKET ECONOMIST AT LEHMAN BROTHERS THEN SOME OF THOSE TRADERS USED A ONEPARAGRAPH NEWS ITEM IN YESTERDAY'S WALL STREET JOURNAL TO HELP FUEL THE SELLING THAT ITEM MADE THE CASE THAT GEORGE SOROS A WELLKNOWN MONEY MANAGER WHO HEADS THE QUANTUM GROUP OF FUNDS HAS BECOME BEARISH ON THE TREASURY MARKET BUT ALMOST ALL OF THE MORNING SELLING WAS UNDERTAKEN BY DEALERS AND LARGE SPECULATIVE TRADING ACCOUNTS AND FEW OTHER PLAYERS WANTED TO FOLLOW THAT LEAD SO THE DEALERS WERE FORCED TO COVER THEIR SHORT POSITIONS OR POSITIONS IN WHICH THEY HAD SOLD SECURITIES IN HOPES OF BUYING THEM BACK LATER AT LOWER PRICES FOR A PROFIT TO COVER THE SHORTS THEY HAD TO START BUYING LATE IN THE DAY THE FEDERAL RESERVE REPORTED THAT THE WIDELY WATCHED MEASURE OF MONEY SUPPLY KNOWN AS M2 DROPPED 400 MILLION IN THE WEEK ENDED APRIL 12 THAT PUTS M2 GROWTH RATE AT NEGATIVE 14 FROM THE FOURTHQUARTER BASE OF LAST YEAR FAR BELOW THE FED'S TARGET OF 2 TO 6 M2 INCLUDES CURRENCY CHECKING ACCOUNTS MONEY MARKET FUNDS AND CERTIFICATES OF DEPOSIT SMALLER THAN 100000 WITH THE EXCEPTION OF THE BRITISH GOVERNMENT BOND MARKET MOST MAJOR EUROPEAN GOVERNMENT BONDS RALLIED YESTERDAY IN RESPONSE TO THE DECISION OF THE GERMAN CENTRAL BANK TO CUT ITS SHORTTERM INTEREST RATES THE BUNDESBANK CUT ITS LOMBARD RATE BY 1/2 POINT TO 850 AND MOST SUPRISINGLY ITS DISCOUNT RATE BY 1/4 POINT TO 725 THE LOMBARD RATE IS THE INTEREST RATE CHARGED FOR SUPPLEMENTAL BORROWINGS FROM GERMANY'S CENTRAL BANK THAT USE SECURITIES AS COLLATERAL THE DISCOUNT RATE IS SIMILAR TO THE US DISCOUNT RATE WHICH IS THE RATE CHARGED BY THE FEDERAL RESERVE ON LOANS IT MAKES TO BANKS AND OTHER DEPOSITORY INSTITUTIONS AMONG FRENCH TREASURYS OR OBLIGATIONS ASSIMILABLES DU TRESOR THE 85 10YEAR NOTES ROSE 072 POINT FROM LATE WEDNESDAY IN PARIS TO 11032 TO YIELD 704 COMPARED WITH 714 DUTCH BONDS MATURING IN 10 YEARS AND CARRYING 65 COUPONS ROSE 037 POINT TO 9995 TO YIELD 651 DOWN FROM 656 GERMAN 10YEAR NOTES CARRYING 7125 COUPONS ROSE 064 POINT TO 10377 TO YIELD 658 DOWN FROM 668 LONGTERM BRITISH GOVERNMENT BONDS CALLED GILTS DROPPED A POINT EARLY IN THE DAY IN REACTION TO REPORTS SUGGESTING THAT NATION'S ECONOMY WAS GAINING STRENGTH AND STOKING FEARS ABOUT INFLATION BUT BY DAY'S END THE GOVERNMENT'S BENCHMARK 10YEAR NOTE CLOSED WITH A LOSS OF NEARLY 3/8 POINT AT 100 20/32 TO YIELD 790 MEANWHILE IN THE EUROBOND MARKET MUCH ATTENTION WAS FOCUSED ON THE RETURN OF GUANGDONG INTERNATIONAL TRUST & INVESTMENT CORP TO THE INTERNATIONAL DEBT MARKETS THE OFFERING MARKED THE FIRST TIME SINCE THE COMMUNIST TAKEOVER OF CHINA IN 1949 THAT US AND EUROPEAN INSTITUTIONAL INVESTORS HAVE HAD A CHANCE TO BUY DEBT FROM GUANGDONG PROVINCE WHICH HAS ONE OF THE WORLD'S FASTESTGROWING ECONOMIES EUROBONDS ARE ISSUED BY A BORROWER OUTSIDE ITS OWN COUNTRY AND USUALLY IN A DIFFERENT CURRENCY THE 150 MILLION OFFERING OF FIVEYEAR FLOATING RATE NOTES WENT EXCEPTIONALLY WELL UNDERWRITERS SAID IT'S THE FIRST TIME WE'VE SEEN SIGNIFICANT EUROPEAN BUYING OF CHINA SAID ONE BANKER AT A US INVESTMENT BANK IN LONDON THE NOTES WERE PRICED BY UNDERWRITERS AT 9990 AND HAVE A FLOATING RATE THAT IS PEGGED AT 055 PERCENTAGE POINT OVER THE SIXMONTH LONDON INTERBANK OFFERED RATE RATE FOR DOLLARS WHICH STANDS AT 331 ELECTRIC UTILITIES AND TELEPHONE COMPANIES CONTINUED TO TAKE ADVANTAGE OF LOW INTEREST RATES YESTERDAY BY OFFERING ABOUT 425 MILLION IN NEW DEBT PAPER TOTAL NEWISSUE VOLUME EASED TO 108 BILLION YESTERDAY AFTER WEDNESDAY'S 26 BILLION TOTAL UTILITIES WHICH HAVE BROUGHT 19 BILLION IN NEW ISSUES THIS WEEK HAVE BEEN FREQUENT BORROWERS EVER SINCE LONGBOND RATES FIRST DIPPED BELOW 7 IN FEBRUARY TOTAL UTILITY ISSUANCE FOR THE YEAR ALREADY IS 249 BILLION LAST YEAR UTILITIES OFFERED 445 BILLION A RECORD SAID LEO KELSER ANALYST AT KIDDER PEABODY & CO SO WE'RE ONLY IN APRIL AND WE'RE A LITTLE MORE THAN HALF WAY TO LAST YEAR'S ALL TIME RECORD MR KELSER SAYS BECAUSE UTILITY COMPANIES TEND TO HAVE A LOT OF DEBT IN THEIR CAPITAL STRUCTURE THEY TEND TO BE MORE INTERESTRATE SENSITIVE THAN OTHER CORPORATE BORROWERS NOTES DANIEL SCOTTO HEAD OF FIXEDINCOME RESEARCH AT DONALDSON LUFKIN & JENRETTE SECURITIES CORP WITH INTEREST RATES AT HISTORIC LOW LEVELS MR SCOTTO SAID IT CREATES A WHOLE BUNCH OF OPPORTUNITIES FOR THEM TO REFINANCE BONDS THAT WERE ISSUED IN THE 1970S ISSUERS YESTERDAY INCLUDED MONONGAHELA POWER CO AND IDAHO POWER CO TELEPHONE COMPANIES ISSUING INCLUDED OHIO BELL TELEPHONE CO AND NYNEX CORP'S NEW YORK TELEPHONE CO UNIT IN ADDITION SPRINT CORP BROUGHT OUT A 322 MILLION PRIVATE ISSUE TO FINANCE 12 LOCAL OPERATING SUBSIDIARIES IN THE SECONDARY MARKET PRICES OF INVESTMENTGRADE BONDS AND JUNK BONDS REMAINED LARGELY UNCHANGED BUT WHAT'S GOOD NEWS FOR ISSUERS ISN'T EXACTLY GOOD NEWS FOR INVESTORS THE BARRAGE OF UTILITY PAPER HAS CAUSED SOME INVESTORS TO PASS UP THE NEW SUPPLY AS A RESULT SYNDICATE OFFICIALS REPORTED THAT MUCH OF THE UTILITY UNDERWRITING BUSINESS WON BY INVESTMENT BANKS IN AGGRESSIVE COMPETITIVE BIDDING THE LAST FEW DAYS REMAINS ON DEALER SHELVES PRICES OF MUNICIPAL BONDS FINISHED STEADY TO 3/8 POINT LOWER AMONG SECONDARY ISSUES THE SOUTH CAROLINA PUBLIC SERVICE AUTHORITY'S 550 REVENUE REFUNDING BONDS OF 2021 ENDED 3/8 POINT WEAKER AT 96 TO YIELD 575 THE KENTUCKY TURNPIKE AUTHORITY'S 550 REVENUE REFUNDING BONDS OF 2011 CLOSED 1/4 POINT LOWER AT 97 1/2 TO YIELD 566 EVEN THOUGH THE SECONDARY MARKET HELD UP QUITE WELL THIS WEEK IN SPITE OF THE PRICING OF MORE THAN 6 BILLION OF SECURITIES THE ACCELERATING PACE OF ISSUANCE IS STARTING TO TAKE A TOLL SOME TRADERS SAY IN THE SECONDARY MARKET IT'S TOUGH FOR ANY SORT OF A RISE BECAUSE OF ALL THE SUPPLY SAID JAMES HIGGINS A TRADER AT DILLON READ & CO THE PRIMARY MARKET WAS QUIET BUT A NUMBER OF SIZABLE OFFERINGS ARE ON THE WAY NEXT WEEK TWO LARGE NEW YORK STATE ISSUES WILL PROBABLY BE THE SPOTLIGHT STEALERS THE NEW YORK STATE DORMITORY AUTHORITY'S 700 MILLION OF BONDS FOR THE STATE UNIVERSITY OF NEW YORK ARE EXPECTED TO BE PRICED BY A MERRILL LYNCH & CO GROUP ON TUESDAY BIDS FOR NEW YORK STATE'S 850 MILLION OF 1993 TAX AND REVENUE ANTICIPATION NOTES WILL BE TAKEN WEDNESDAY PROCEEDS FROM THE SALE OF THE NOTES WHICH HAVE A DEC 31 MATURITY WILL PROVIDE FUNDS FOR THE STATE AS IT AWAITS TAXES AND REVENUES FOR THE 199394 FISCAL YEAR PRICES OF MORTGAGE SECURITIES EXTENDED RECENT MODERATE GAINS BUT STAYED IN A NARROW PRICE RANGE CONTINUED COLLATERAL BUYING FOR A HEAVY FLOW OF NEW REAL ESTATE MORTGAGE INVESTMENT CONDUIT AND STRIPS DEALS IS PROVIDING A FIRM UNDERTONE TO THE MORTGAGE MARKET WHICH HAS BEEN OUTPERFORMING INTERMEDIATE TREASURYS ALL WEEK AMONG SECONDARY ISSUES GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 7 ISSUES FOR MAY DELIVERY ENDED 4/32 FIRMER AT 101 18/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 7 ISSUES FINISHED 5/32 HIGHER AT 101 24/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 7 ISSUES ENDED 5/32 HIGHER AT 101 18/32 FOUR NEW FANNIE MAE REMIC OFFERINGS TOTALING 19 BILLION WERE ANNOUNCED YESTERDAY BRINGING THIS WEEK'S AGENCY REMIC ISSUANCE TO ABOUT 6 BILLION ADDITIONALLY FANNIE MAE STRIPS ISSUANCE THIS WEEK NEARS 3 BILLION MEANWHILE PREPAYMENT RISKS REMAIN A CONSTANT CONSIDERATION FOR MORTGAGE SECURITIES HOLDERS BUT SOME ANALYSTS ARE SAYING THEY'RE LESS WORRIED ABOUT RATEINDUCED REFINANCINGS THAN IN RECENT WEEKS 9304230055 930423 INTERNATIONAL PANEL CLEARS WAY FOR US TO IMPOSE IMPORT DUTIES ON KOREAN MICROCHIPS BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE INTERNATIONAL TRADE COMMISSION IN AN UNUSUAL SPLIT DECISION RULED THAT IMPORTS OF SOUTH KOREAN COMPUTER CHIPS HURT AMERICAN PRODUCERS CLEARING THE WAY FOR THE US TO IMPOSE MODEST IMPORT DUTIES LAST MONTH THE COMMERCE DEPARTMENT DECIDED KOREAN MEMORY CHIPS WERE BEING DUMPED AT BELOWMARKET PRICES AND SET TARIFFS THAT MANY CONSIDERED SURPRISINGLY LOW EARLIER THIS WEEK THE TARIFFS WERE INCREASED BUT NOT ENOUGH THAT KOREAN FIRMS ARE EXPECTED TO BE HURT MUCH OR THAT CHIP PRICES IN THE US WILL CLIMB MUCH THE ITC A QUASIJUDICIAL BODY IS CHARGED WITH DETERMINING WHETHER IMPORTS INJURE DOMESTIC COMPETITORS IN THE MEMORY CHIP CASE THE SIX COMMISSIONERS VOTED 33 WHICH ACCORDING TO ITC RULES IS SUFFICIENT TO FIND INJURY ONCE INJURY IS ESTABLISHED THE COMMERCE DEPARTMENT CAN ORDER THE CUSTOMS SERVICE TO COLLECT DUTIES THOUGH THE DECISION WAS ANNOUNCED YESTERDAY ITC RULES DON'T REQUIRE THE COMMISSIONERS TO EXPLAIN THE REASONING BEHIND THEIR VOTES UNTIL LATER IN THIS CASE THE OPINIONS WILL BE FILED MAY 3 THE TIE VOTE HOWEVER SUGGESTS SEVERAL COMMISSIONERS MAY HAVE FELT THE DOMESTIC CHIP MAKERS DIDN'T SUFFER MUCH BECAUSE THE KOREANS UNDERPRICED THEIR CHIPS ONLY MODESTLY ACCORDING TO THE REVISED FIGURES THE COMMERCE DEPARTMENT SET DUMPING TARIFFS OF 082 ON SAMSUNG ELECTRONICS CO INCREASED FROM 074 AND 1145 ON HYUNDAI ELECTRONICS CO INCREASED FROM 719 THE TARIFFS ON GOLDSTAR ELECTRON CO REMAIN AT 497 TARIFFS ON OTHER SOUTH KOREAN MICROCHIP MAKERS INCREASED SLIGHTLY TO 389 FROM 319 LAWRENCE WALDERS AN ATTORNEY FOR HYUNDAI THE ONLY KOREAN COMPANY TO GET TAGGED WITH DOUBLEDIGIT MARGINS PREDICTED THE COMPANY WOULDN'T BE SIGNIFICANTLY HURT BY THE DECISION IN A STRONG MARKET STRONG ENOUGH THAT THREE OF SIX COMMISSIONERS THOUGHT THERE WAS NO INJURY YOU'D IMAGINE THERE WOULD BE ROOM FOR PRICE INCREASES HE DECLARED GENERALLY COMPANIES ASSESSED DUMPING MARGINS SIMPLY RAISE PRODUCT PRICES BY THE AMOUNT OF THE DUTIES THAT WAY THEIR PRODUCTS NO LONGER VIOLATE DUMPING RULES SO THEY ARE NO LONGER ASSESSED DUMPING LEVIES WHEN DEMAND FOR A PRODUCT REMAINS HIGH THE PRICE INCREASES SIMPLY ADD TO A FOREIGN COMPANY'S REVENUE MICRON TECHNOLOGY INC THE MEMORYCHIP MAKER IN BOISE IDAHO THAT FILED THE DUMPING COMPLAINT SAID IT WAS PLEASED WITH THE DECISION PARTIES IN A DUMPING CASE CAN REQUEST A NEW INVESTIGATION IN A YEAR WHICH IN EFFECT MEANS THAT THE GOVERNMENT WILL LIKELY KEEP AN EYE ON PRICING DURING THAT TIME THE MOST POSITIVE IMPACT OF THE DECISION A MICRON SPOKESWOMAN SAID IS THAT THE KOREANS WILL BE MONITORED FOR 12 MONTHS ITC RULINGS CAN BE APPEALED TO THE COURT OF INTERNATIONAL TRADE IN NEW YORK BUT THE COMPANIES INVOLVED IN THE CHIP DISPUTE SAID THEY WILL DECIDE WHETHER TO APPEAL AFTER THEY STUDY THE REASONING BEHIND THE DECISION 9304230054 930423 DELTA AIR REPORTS LOSS NARROWED IN FISCAL 3RD PERIOD BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL DELTA AIR LINES SAID ITS NET LOSS NARROWED TO 1339 MILLION OR 318 A SHARE IN ITS FISCAL THIRD QUARTER THE DEFICIT IN THE LATEST PERIOD INCLUDED A ONETIME RESTRUCTURING CHARGE OF 825 MILLION RELATING TO DELTA'S FLEET SIMPLIFICATION EFFORT WHICH INCLUDES RETIRING 28 JETS AND FURLOUGHING 600 PILOTS LATER THIS YEAR THE DOWNSIZING IS PLANNED FOR THE FALL DELTA'S RESULTS WHICH WERE ROUGHLY IN LINE WITH WALL STREET ANALYSTS' EXPECTATIONS DIDN'T SPARK THE KIND OF RALLY IN AIRLINE STOCKS THAT THE ANNOUNCEMENT OF AMR CORP'S SMALLERTHANEXPECTED LOSS DID ONLY A DAY EARLIER IN FACT DELTA'S STOCK YESTERDAY SLID 2 TO CLOSE AT 57375 IN NEW YORK STOCK EXCHANGE TRADING THE DROP WAS IN PART BECAUSE OF PROFITTAKING AFTER WEDNESDAY'S SPIKE DELTA'S NUMBERS UNLIKE AMERICAN'S WERE NOT BETTER THAN THE STREET EXPECTED SAID THOMAS LONGMAN THE AIRLINE ANALYST AT BEAR STEARNS IN GENERAL WHENEVER YOU SEE A RUNUP IN AIRLINE STOCKS LIKE YOU DID YESTERDAY YOU USUALLY SEE PROFIT TAKING AND PERHAPS IT'S EVEN A LITTLE MORE EMPHATIC THESE DAYS BECAUSE THE LEVEL OF SKEPTICISM ABOUT FUTURE OF THIS GROUP IS STILL HIGH IN THE YEARAGO QUARTER THE ATLANTABASED CARRIER HAD A NET LOSS OF 1516 MILLION OR 316 A SHARE REVENUE FOR THE 1993 FISCAL THIRD QUARTER ENDED MARCH 31 WAS 292 BILLION COMPARED WITH LAST YEAR'S 281 BILLION ON AN OPERATING BASIS DELTA ALSO NARROWED ITS LOSS TO 1789 MILLION FROM 1993 MILLION IN AN INTERVIEW DELTA'S CHIEF FINANCIAL OFFICER THOMAS J ROECK SAID THE AIRLINE REDUCED ITS COSTS PER AVAILABLE SEAT MILE BY 1 IN SPITE OF THE MARCH STORM THAT KEPT CAPACITY DOWN DURING THE QUARTER OVERALL HE SAID COSTCUTTING EFFORTS ARE BEGINNING TO BEAR FRUIT ALTHOUGH MANY OF THE EFFECTS WILL BE FELT LATER THIS YEAR WHEN CAPACITY CUTBACKS BEGIN WHILE DELTA DID SEE A 3 IMPROVEMENT IN ITS PASSENGER REVENUE THAT WAS FUELED PRIMARILY BY AN INCREASE IN TRAFFIC PASSENGER YIELD A MEASUREMENT OF HOW MUCH REVENUE EACH PASSENGER PAYS FELL BY 2 AND OPERATING EXPENSES OVERALL WERE UP BY 3 THAT HOWEVER IS A MARKED IMPROVEMENT OVER DELTA'S OPERATING EXPENSES FOR THE NINE MONTHS WHICH WERE UP MORE THAN 11 FOR DELTA'S FIRST THREE QUARTERS THE AIRLINE HAD A NET LOSS OF 367 MILLION OR 887 A SHARE ON REVENUE OF 886 BILLION LAST YEAR DELTA HAD A NET LOSS OF 3262 MILLION OR 688 PER SHARE ON REVENUE OF 801 BILLION THEY DELTA ARE DOING BETTER SAID MR LONGMAN THE TREND IS TO DO BETTER BUT THEY HAD FURTHER TO COME FROM AND HAVE FARTHER TO GO UNLIKE ITS OTHER AIRLINE COMPETITORS DELTA HASN'T YET TAKEN THE HEAVY CHARGES FROM ACCOUNTING CHANGES FOR POSTRETIREMENT BENEFITS THE CARRIER HAS SAID THE CHARGE WILL RANGE FROM 11 BILLION TO 12 BILLION BUT YESTERDAY MR ROECK SAID THE COMPANY HASN'T DECIDED WHETHER TO TAKE IT IN THE CURRENT QUARTER OR THE SEPTEMBER PERIOD AS TO WHETHER AN AIRLINE INDUSTRY RECOVERY IS UNDER WAY MR ROECK WAS CAUTIOUS THE PROBLEM IS THAT THE INDUSTRY HAS BEEN IN SUCH A TOUGH PERIOD IT'S TOUGH TO TELL THE DIFFERENCE BETWEEN A BLIP AND THE REAL THING 9304230053 930423 BUSINESS BRIEF ELECTRONIC ARTS FIRM POSTS 61 PROFIT GAIN FOR FISCAL FOURTH QUARTER ELECTRONIC ARTS POSTED A 61 RISE IN FISCAL FOURTHQUARTER NET INCOME AIDED BY THE SUCCESS OF NEW PRODUCTS FOR THE QUARTER ENDED MARCH 31 THE SAN MATEO CALIF MAKER OF COMPUTER GAMES POSTED NET INCOME OF 86 MILLION OR 17 CENTS A SHARE COMPARED WITH YEAREARLIER EARNINGS OF 53 MILLION OR 11 CENTS A SHARE REVENUE INCREASED 80 TO 866 MILLION FROM 48 MILLION ELECTRONIC ARTS ATTRIBUTED THE RESULTS TO STRONG SALES OF ITS GAMES FOR SYSTEMS MADE BY SEGA ENTERPRISES LTD AND NINTENDO CO IN THE QUARTER THE COMPANY INTRODUCED 12 NEW PRODUCTS COMPARED WITH SEVEN RELEASED DURING THE YEAREARLIER PERIOD SALES ROSE 89 IN EUROPE IN THE QUARTER AND ROSE 56 IN NORTH AMERICA FOR THE YEAR ELECTRONIC ARTS POSTED NET INCOME OF 309 MILLION OR 65 CENTS A SHARE UP 65 FROM NET INCOME OF 187 MILLION OR 42 CENTS A SHARE IN THE PREVIOUS YEAR FULLYEAR REVENUE GREW 70 TO 298 MILLION FROM 175 MILLION IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY THE COMPANY'S STOCK CLOSED AT 3050 DOWN 25 CENTS 9304230052 930423 INTERNATIONAL BRIEF XENOVA GROUP PLC BIOTECH FIRM COLLABORATES WITH SUNTORY LTD OF JAPAN XENOVA GROUP PLC A FLEDGLING BRITISH BIOTECH COMPANY BROADENED ITS WEB OF INTERNATIONAL PARTNERSHIPS BY JOINING FORCES WITH SUNTORY LTD THE JAPANESE BEVERAGE AND PHARMACEUTICAL GIANT THE COLLABORATION WILL FOCUS ON DEVELOPMENT OF DRUGS TO TREAT IMMUNEINFLAMMATORY DISEASES PARTICULARLY RHEUMATOID ARTHRITIS XENOVA WILL RECEIVE 12 MILLION IN RESEARCH PAYMENTS UP FRONT FROM SUNTORY WITH POTENTIAL FOR MORE IF IT MEETS VARIOUS PRODUCTDEVELOPMENT MILESTONES SUNTORY WILL PAY ANOTHER 3 MILLION FOR AN EQUITY STAKE IN XENOVA OF JUST UNDER 3 BIOTECH STAR GENENTECH INC OF THE US OWNS ROUGHLY 12 OF XENOVA STEMMING FROM A FIVEYEAR 20 MILLION RESEARCH PACT SIGNED TWO YEARS AGO XENOVA IS AIMING FOR AN INITIAL PUBLIC SHARE OFFERING PERHAPS BY YEAR'S END 9304230051 930423 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED APRIL 16 ACCOUNTED FOR 106 OR AN AVERAGE 291 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 134 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 485 INVOLVED STOCKINDEX ARBITRAGE UP FROM 229 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 436 OF PROGRAM TRADING REFLECTED FIRM'S TRADING FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 427 WAS FOR CUSTOMERS AN ADDITIONAL 137 WAS EXECUTED BY FIRMS USING PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS NOMURA SECURITIES UBS SECURITIES AND SUSQUEHANNA DID ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY AND THOMAS WILLIAMS DID ALL OR MOST OF THEIR PROGRAM TRADING FOR CUSTOMERS 9304230050 930423 BUSINESS BRIEF MAGMA COPPER CO HEAVY RAIN CURTAILS OUTPUT REDUCING FIRSTQUARTER NET MAGMA COPPER CO REPORTED NET INCOME FELL SIGNIFICANTLY IN THE FIRST QUARTER COMPARED WITH THE YEAR EARLIER DUE TO UNUSUALLY HEAVY RAINS IN THE SOUTHWEST US IN DECEMBER AND JANUARY THE TUCSON ARIZ COPPER PRODUCER REPORTED NET OF 300000 OR ONE CENT A SHARE COMPARED WITH 97 MILLION OR 22 CENTS A SHARE IN THE YEARAGO QUARTER THE RAINS CURTAILED PRODUCTION REDUCING NET INCOME IN THE LATEST QUARTER BY 13 MILLION AND RAISED PERPOUND CASH OPERATING COSTS TO 77 CENTS FROM 66 A YEAR EARLIER WITHOUT THE RAINRELATED EXPENSES OPERATING COSTS WOULD HAVE BEEN 65 CENTS A POUND THE COMPANY SAID SALES DECLINED 25 TO 195 MILLION FROM 200 MILLION COPPER PRODUCTION ROSE TO 194 MILLION POUNDS FROM 187 MILLION POUNDS 9304230049 930423 BUSINESS BRIEF STAFF BUILDERS INC HEALTH CARE FIRM TO OPEN AT LEAST 30 OFFICES THIS YEAR STAFF BUILDERS INC SAID IT PLANS TO OPEN AT LEAST 30 NEW OFFICES FOR ITS HOME HEALTH CARE PERSONNEL BUSINESS IN THE CURRENT FISCAL YEAR THE LAKE SUCCESS NY COMPANY WHICH PROVIDES NURSES THERAPISTS AND OTHER TYPES OF PERSONNEL TO PATIENTS IN THEIR HOMES CURRENTLY HAS 95 OWNED OR FRANCHISED OFFICES SAID GARY TIGHE CHIEF FINANCIAL OFFICER STEVEN SAVITSKY CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID ALL OF THE NEW LOCATIONS ARE EXPECTED TO BE FRANCHISES BY THE END OF THE FISCAL YEAR NEXT FEBRUARY MR SAVITSKY SAID THE COMPANY EXPECTS TO BE SERVICING 15000 PEOPLE A DAY COMPARED WITH 9000 CURRENTLY STAFF BUILDERS REPORTED A TRIPLING IN NET INCOME FOR ITS RECENT FISCAL YEAR ENDED FEB 28 TO 26 MILLION OR 14 CENTS A SHARE ON AN 18 REVENUE INCREASE TO 1986 MILLION 9304230048 930423 BUSINESS BRIEF GENERAL MOTORS CORP EDS SIGNS A 10YEAR PACT WITH SWEDISH CONGLOMERATE ELECTRONIC DATA SYSTEMS CORP SAID IT SIGNED A 10YEAR AGREEMENT WITH KOOPERATIVA FORBUNDET THE FIFTHLARGEST BUSINESS CONGLOMERATE IN SWEDEN TO PROVIDE INFORMATION TECHNOLOGY SERVICES TERMS WEREN'T DISCLOSED BUT DALLASBASED EDS THE COMPUTER SERVICES UNIT OF GENERAL MOTORS CORP SAID THE AGREEMENT REPRESENTS ONE OF THE LARGEST CONTRACTS OF ITS TYPE EVER SIGNED IN EUROPE A COMPANY SPOKESMAN ESTIMATED THE AGREEMENT WOULD ADD 1 BILLION TO THE COMPANY'S REVENUE OVER THE 10YEAR PERIOD UNDER THE AGREEMENT EDS WILL TAKE OVER THE OPERATIONS OF APIRON INFORMATION AB THE INFORMATION TECHNOLOGY SERVICES UNIT OF KOOPERATIVA THE UNIT HAD 1992 REVENUE OF 98 MILLION EDS SAID KOOPERATIVA IS THE NATIONAL ORGANIZATION OF SWEDEN'S COOPERATIVE SOCIETIES AND ITS CORE BUSINESS IS RETAILING JULIE SCHWARTZ AN ANALYST WITH DATAQUEST INC IN FRAMINGHAM MASS SAID THE AGREEMENT COULD HAVE A SNOWBALL EFFECT FOR EDS INCREASING THE COMPANY'S ABILITY TO TAP THE EUROPEAN MARKET EDS IS REALLY VERY WELL POSITIONED IN THE EUROPEAN MARKET AND THIS WILL FURTHER ENTRENCH THEM IN EUROPE SHE SAID 9304230047 930423 BUSINESS BRIEF ALLEGHANY CORP COMPANY REPORTS 56 RISE IN FIRSTQUARTER NET INCOME ALLEGHANY CORP REPORTED A 56 INCREASE IN FIRSTQUARTER NET INCOME LARGELY FROM INVESTMENT GAINS AND THE FAVORABLE RESOLUTION OF A TAX DISPUTE ALLEGHANY BASED IN NEW YORK HAS INTERESTS IN INVESTMENT MANAGEMENT RETAIL BANKING TITLE INSURANCE AND INDUSTRIAL MINERALS FOR THE QUARTER NET ROSE TO 333 MILLION OR 5 A SHARE FROM 213 MILLION OR 321 A SHARE REVENUE INCREASED 49 TO 4193 MILLION FROM 3999 MILLION IN THE 1992 QUARTER ALLEGHANY RECORDED A 20 MILLION OR 3ASHARE CREDIT STEMMING FROM ITS RESOLUTION OF A TAX DISPUTE WITH THE INTERNAL REVENUE SERVICE FOLLOWING ITS 1984 SALE OF INVESTORS DIVERSIFIED SERVICES INC TO AMERICAN EXPRESS CO A COMPANY SPOKESMAN SAID THE IRS HAD RULED IN ALLEGHANY'S FAVOR AFTER THE COMPANY APPEALED AN EARLIER AUDIT OF THE SALE DURING THE PAST THREE YEARS THE COMPANY HAD TAKEN CHARGES AGAINST EARNINGS TO COVER A POTENTIAL TAX LIABILITY THE 1992 FIRST QUARTER INCLUDED A GAIN OF 91 MILLION OR 137 A SHARE FROM CHANGE IN ACCOUNTING METHOD FOR INCOME TAX REPORTING IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE ALLEGHANY SHARES CLOSED AT 144 UP 250 9304230046 930423 ECONOMY EQUIPMENT MARKET REBOUNDS GIVES CATERPILLAR PROFIT BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL BOOSTED BY AN EMERGING TURNAROUND IN THE US CONSTRUCTIONEQUIPMENT BUSINESS CATERPILLAR INC SWUNG TO A FIRSTQUARTER PROFIT AND PROJECTED PROFITS FOR THE REST OF THE YEAR THE NEWS SENT CATERPILLAR'S STOCK UP 84 TO A NEW 52WEEK HIGH AND ALSO HELPED SHARES OF OTHER MACHINERY MAKERS IN NEW YORK STOCK EXCHANGE TRADING CATERPILLAR CLOSED UP 525 AT 6750 SHARES OF DEERE & CO ONE OF CATERPILLAR'S DOMESTIC RIVALS WERE UP 225 TO 5825 IN BIG BOARD TRADING CATERPILLAR BASED IN PEORIA ILL SAID A SPURT IN DOMESTIC SALES HELPED IT REVERSE A YEAREARLIER LOSS AND EARN 34 MILLION OR 34 CENTS A SHARE ON REVENUE OF 27 BILLION THE RESULTS THOUGH HARDLY ROBUST FUELED OPTIMISM AMONG INVESTORS AND ANALYSTS THAT THE LONGDEPRESSED MARKET FOR CONSTRUCTION EQUIPMENT IN THE US IS FINALLY REBOUNDING WE THINK IT WILL CONTINUE THROUGH 1993 AND INTO 1994 JAMES WOGSLUND THE COMPANY'S VICE CHAIRMAN SAID IN AN INTERVIEW IN THE YEAREARLIER QUARTER WHEN CATERPILLAR WAS HOBBLED BY A STRIKE AND LOW DEMAND FOR ITS PRODUCTS THE COMPANY HAD AN OPERATING LOSS OF 157 MILLION OR 156 A SHARE ON REVENUE OF 218 BILLION A CHARGE FOR AN ACCOUNTING CHANGE FOR RETIREMENT BENEFITS MADE THE FINAL YEARAGO LOSS 237 BILLION OR 2353 A SHARE THE COMPANY SAID THE DOMESTIC REBOUND CAME FROM HIGHER EQUIPMENT SALES IN ALL ITS MARKETS FROM HOUSING AND HIGHWAY CONSTRUCTION TO FOREST PRODUCTS AND COAL MINING IT SAID ABOUT 16 MODELS OR 10 OF ITS MAIN PRODUCT LINE WERE IN SHORT SUPPLY IT ATTRIBUTED MUCH OF THE FIRSTQUARTER SALES INCREASE TO DEALERS' RESTOCKING THEIR INVENTORIES IN ANTICIPATION OF HIGHER 1993 SALES WHILE THE 44 DOMESTIC SALES INCREASE TO 137 BILLION WAS A CAUSE FOR OPTIMISM THE COMPANY SAID IT STILL FACES WEAKNESS ABROAD SALES OUTSIDE THE US HURT BY CONTINUED RECESSION IN EUROPE ROSE 8 TO 124 BILLION MITCHELL QUAIN AN ANALYST AT WERTHEIM SCHRODER & CO IN NEW YORK SAID CATERPILLAR IS IN A STRONG POSITION TO CAPITALIZE ON AN INDUSTRY REBOUND HE SAID THE STRENGTH OF THE JAPANESE YEN AGAINST THE DOLLAR HAS LED KOMATSU LTD'S US JOINT VENTURE TO RAISE ITS PRICES WHILE THE JI CASE UNIT OF TENNECO INC IS RETRENCHING THAT MEANS CATERPILLAR CAN RAISE ITS PRICES AND INCREASE MARKET SHARE AS IT DID IN 1992 BUT NOW IT HAS THE ADDED BENEFIT OF A SALES REBOUND AND THE POTENTIAL FOR A REBOUND LATER IN ITS HUGE OVERSEAS MARKETS IT'S JUST A SUPERB ENVIRONMENT FOR CATERPILLAR MR QUAIN SAID THE ANALYST SAID THE ONLY SIGNIFICANT NEGATIVE FOR CATERPILLAR IS ITS STILLUNSETTLED CONTRACT WITH THE UNITED AUTO WORKERS UNION 9304230045 930423 WHO'S NEWS CANDELA LASER CORP CANDELA LASER CORP WAYLAND MASS GERARD E PUORRO WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER THE COMPANY ALSO NAMED MICHAEL J GIARRATANO CHIEF FINANCIAL OFFICER MR GIARRATANO 35 YEARS OLD WAS FORMERLY CONTROLLER HE SUCCEEDS MR PUORRO MR PUORRO 47 SUCCEEDS JOHN T PAVLIC 48 WHO RESIGNED TO SPEND MORE TIME WITH HIS FAMILY CANDELA LASER SAID WITH MR PAVLIC'S RESIGNATION BOARD MEMBERSHIP WAS DECREASED TO FOUR AT THE MAKER OF MEDICAL LASERS 9304230044 930423 AMDAHL TO SLASH ITS WORK FORCE TRIM CAPACITY MAINFRAME COMPUTER FIRM CITES FALLING DEMAND AND ERODING PRICES BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL AMDAHL CORP SAID IT WILL SLASH 1100 JOBS OR 13 OF ITS WORK FORCE AMID SINKING DEMAND AND ERODING PRICES OF ITS MAINFRAME COMPUTERS AMDAHL SAID ITS PLANNED STAFF CUTS WERE PART OF A STREAMLINING STRATEGY THAT WOULD SLASH MANUFACTURING CAPACITY BY 25 AND WOULD HELP KEEP THE COMPANY IN LINE WITH DEMAND WHICH HAS DROPPED SIGNIFICANTLY DURING THE PAST FEW MONTHS THE ANNOUNCEMENT BY THE SUNNYVALE CALIF COMPANY FURTHER INDICATES THE TOUGH MARKET FACED BY MAINFRAMECOMPUTER MAKERS AS RECENT EVIDENCE OF A TOUGH MARKET INTERNATIONAL BUSINESS MACHINES CORP ANNOUNCED TUESDAY THAT ITS MAINFRAME SALES PLUNGED CONTRIBUTING TO A FIRSTQUARTER LOSS OF 285 MILLION AMDAHL'S PLAN TO REDUCE ITS EMPLOYEES TO 7400 IN LATE MAY COMES ON THE HEELS OF AN ANNOUNCEMENT MARCH 24 IN WHICH THE COMPANY SAID ITS FIRSTQUARTER NET LOSS WOULD BE WIDER THAN ANALYSTS' ESTIMATES OF TWO CENTS A SHARE THE ANNOUNCEMENT BY THE SUNNYVALE CALIF COMPANY FURTHER INDICATES THE TOUGH MARKET FACED BY MAINFRAMECOMPUTER MAKERS AS RECENT EVIDENCE OF A TOUGH MARKET INTERNATIONAL BUSINESS MACHINES CORP ANNOUNCED TUESDAY THAT ITS MAINFRAME SALES PLUNGED CONTRIBUTING TO A FIRSTQUARTER LOSS OF 285 MILLION AMDAHL'S ANNOUNCEMENT TO REDUCE BY 1100 THE TOTAL NUMBER OF ITS EMPLOYEES TO 7400 IN LATE MAY COMES ON THE HEELS OF AN ANNOUNCEMENT MARCH 24 IN WHICH THE COMPANY SAID ITS FIRSTQUARTER NET LOSS WOULD BE WIDER THAN ANALYSTS' ESTIMATES OF TWO CENTS A SHARE THE ANNOUNCEMENTS TELL OF THE DIFFICULTIES THAT AMDAHL'S CHIEF EXECUTIVE OFFICER E JOSEPH ZEMKE IS HAVING IN HIS SEARCH FOR WAYS TO SQUEEZE SALES OUT OF A MARKET THAT IS STILL BIG BUT PLAGUED BY EXCESS SUPPLY FALLING MARGINS AND A TREND TOWARD THE USE OF SMALLER BUT INCREASINGLY POWERFUL COMPUTERS YESTERDAY MR ZEMKE WAS UNAVAILABLE FOR COMMENT JAY STEVENS AN ANALYST WITH DEAN WITTER REYNOLDS SAID HE SAW AMDAHL'S MOVE TO SLASH STAFF AS TRYING TO BE AS LEAN AND MEAN AS POSSIBLE UNTIL THE MARKETPLACE CHANGES BUT THE COMPANY'S OUTLOOK IS BLEAK HE SAID EVEN IF THE ECONOMY IMPROVES AND SPURS DEMAND THE MARKET FOR MAINFRAME COMPUTERS WON'T BE THE CASH COW IT ONCE WAS HE SAID PRICES OF MAINFRAME COMPUTERS DURING THE PAST 12 MONTHS HAVE PLUMMETED BY 30 ESTIMATED MICHAEL CHUBA AN ANALYST WITH GARTNER GROUP A MARKETRESEARCH FIRM PRICES ARE EXPECTED TO CONTINUE TO DROP THIS YEAR HE SAID ALSO IBM REMAINS A FORMIDABLE COMPETITOR IN THE MARKET HE SAID IN 1993 AMDAHL ISN'T GOING TO BE OUT OF THE WOODS IN 1992 AMDAHL'S ANNUAL REVENUE GREW 48 TO 252 BILLION BUT MUCH OF THE GAIN IN VOLUME WAS OFFSET BY PRICING PRESSURES 9304230043 930423 WHO'S NEWS SEARS ROEBUCK & CO SEARS ROEBUCK & CO CHICAGO JAMES D THORNTON 44 YEARS OLD FORMERLY NATIONAL BUSINESS MANAGER FOR SEARS AUTOMOTIVE WAS NAMED VICE PRESIDENT SEARS AUTOMOTIVE HE SUCCEEDS ALBERT F DOMBROWSKI 55 WHO IS RETIRING UNDER AN EARLYRETIREMENT INCENTIVE PROGRAM 9304230042 930423 MCI POSTS 7 INCREASE IN FIRSTQUARTER NET EXCEEDS EXPECTATIONS WASHINGTON MCI COMMUNICATIONS CORP'S NET INCOME ROSE 7 IN THE FIRST QUARTER REFLECTING STRONG GROWTH IN LONGDISTANCE TRAFFIC AND IMPROVED COSTS MCI'S RESULTS SHOWED THE COMPANY IS GAINING CUSTOMERS PROFITABLY IN FACT MCI'S PROFIT ACTUALLY EXCEEDED ANALYSTS EXPECTATIONS BY SEVERAL CENTS A SHARE FIRSTQUARTER NET WAS 151 MILLION OR 56 CENTS A SHARE COMPARED WITH 141 MILLION OR 51 CENTS A YEAR AGO REVENUE GREW 12 TO 281 BILLION FROM 251 BILLION BUT THE COMPANY SAID IT WOULD HAVE SHOWED 20 EARNINGS GROWTH TO 168 MILLION OR 62 CENTS A SHARE HAD IT NOT BEEN FOR A 17 MILLION OR SIX CENTSASHARE CHARGE TO COVER EARLY DEBT RETIREMENT OPERATING INCOME JUMPED 20 IN THE QUARTER TO 340 MILLION FROM 283 MILLION A YEAR EARLIER CALL TRAFFIC VOLUME GREW 136 FROM A YEAR AGO AND 47 FROM THE FOURTH QUARTER THE INDUSTRY'S BEST SHOWING JUDGING BY OUR NUMBERS AND OUR COMPETITORS' THE INDUSTRY APPEARS TO BE GROWING 8 ANNUALLY THE BEST IN A COUPLE OF YEARS SAID DOUGLAS MAINE MCI'S CHIEF FINANCIAL OFFICER GREAT QUARTER SAID FRANK GOVERNALI AN ANALYST AT FIRST BOSTON CORP HE SAID MCI SAW STRONG GROWTH IN BUSINESS SERVICES AS WELL AS ITS FRIENDS & FAMILY CONSUMER DISCOUNT PROGRAM FRIENDS HE ADDED GENERATES GREATER PROFIT BY GETTING MCI CUSTOMERS TO SIGN UP OTHERS FOR THE SERVICE AND QUALIFY FOR DEEP PRICE CUTS GOLDMAN SACHS & CO ANALYST ROBERT B MORRIS PREDICTED THAT A KINDER GENTLER MCI WILL EMERGE OVER THE NEXT YEAR FOCUSING ON RAISING ITS PERMINUTE TRAFFIC PRICING INSTEAD OF WAGING AN EXPENSIVE AD WAR WITH ITS RICHER RIVAL AMERICAN TELEPHONE & TELEGRAPH CO IF PRICING STABILIZES MCI DOESN'T HAVE TO TAKE TONS OF MARKET SHARE TO MAKE MONEY HE SAID 9304230041 930423 WHO'S NEWS DEXTER CORP DEXTER CORP HARTFORD CONN K GRAHAME WALKER WAS NAMED CHAIRMAN MR WALKER 55 YEARS OLD SUCCEEDS DAVID L COFFIN WHO RETIRED MR COFFIN 67 WILL REMAIN AN OUTSIDE DIRECTOR UNTIL HIS TERM EXPIRES IN 1994 MR WALKER WILL CONTINUE TO SERVE AS PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR OF THE SPECIALTY CHEMICALS AND MATERIALS CONCERN 9304230040 930423 BUSINESS BRIEF INLAND ARMCO REPORT LOSSES ON OPERATIONS NARROWED IN QUARTER INLAND STEEL INDUSTRIES INC AND ARMCO INC THE FIRST TWO STEELMAKERS TO REPORT FIRSTQUARTER RESULTS BOTH HAD NARROWER OPERATING LOSSES THE LIGHTER OPERATING LOSSES WERE IN LINE WITH EXPECTATIONS ANALYSTS EXPECT FURTHER IMPROVEMENT IN THE CURRENT QUARTER AND INLAND SAID THE MARKET IS STRONG SO FAR IN THE PERIOD ARMCO THE NATION'S SEVENTHLARGEST PRODUCER HAD A NET LOSS OF 3264 MILLION OR 319 A SHARE THE RESULTS INCLUDED A ONETIME NONCASH CHARGE OF 3044 MILLION OR 294 A SHARE TO ADOPT A NEW ACCOUNTING STANDARD EXCLUDING THE CHARGE ARMCO'S LOSS WAS 22 MILLION OR 25 CENTS A SHARE NARROWER THAN THE LOSS OF 305 MILLION OR 37 CENTS A SHARE A YEAR EARLIER SALES ROSE 41 TO 5155 MILLION FROM 3664 MILLION BECAUSE OF THE ACQUISITION OF CYCLOPS INDUSTRIES INC ARMCO CREDITED IMPROVED PRODUCTIVITY AT ITS SPECIALTY STEEL OPERATIONS AND IMPROVEMENT AT ITS ARMCO STEEL CO JOINT VENTURE WITH KAWASAKI STEEL CORP ARMCO STEEL SHRANK ITS PERSHARE LOSS TO 20 FROM 46 A YEAR EARLIER ARMCO'S STOCK CLOSED AT 7 A SHARE DOWN 25 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE COMPANY IS BASED IN PARSIPPANY NJ CHICAGOBASED INLAND THE FIFTHLARGEST US STEELMAKER HAD A NET LOSS OF 314 MILLION OR 112 A SHARE A YEAR EARLIER INLAND HAD A NET LOSS OF 694 MILLION OR 2268 A SHARE INCLUDING A ONETIME CHARGE OF 6562 MILLION OR 2120 A SHARE SALES ROSE 51 TO 9415 MILLION FROM 8959 MILLION AS SHIPMENTS ROSE 14 ON THE BIG BOARD YESTERDAY INLAND STOCK ENDED UNCHANGED AT 2350 A SHARE A SMALLER STEELMAKER ACME METALS INC REPORTED FIRSTQUARTER NET INCOME OF 114000 OR TWO CENTS A SHARE COMPARED WITH A LOSS OF 501 MILLION OR 929 A SHARE AFTER A BIG CHARGE A YEAR EARLIER SALES IMPROVED 10 SEPARATELY THE UNITED STEELWORKERS UNION SAID IT AND NATIONAL STEEL CORP BROKE OFF LABOR TALKS INLAND THE ONLY STEELMAKER STILL NEGOTIATING A SUCCESSOR TO THE CURRENT AGREEMENT EXPIRING JULY 1 SAID IT MAY NOT MAKE ITS GOAL OF REACHING AN ACCORD BY MAY 1 HOWEVER A SPOKESMAN SAID OUR FEELING IS WE WILL SUCCEED IN AN EARLY SETTLEMENT SUCH A PACT IS LIKELY TO SET A PATTERN FOR THE INDUSTRY 9304230039 930423 ABREAST OF THE MARKET TRANSPORTATION SHARES ARE WEAK DRAG DOWN OTHER STOCK SECTORS BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TRANSPORTATION STOCKS PULLED A QUICK REVERSAL FROM THEIR WEDNESDAY RALLY AND TOOK THE REST OF THE MARKET ALONG FOR THE RIDE ONE DAY AFTER A STRONGERTHANEXPECTED EARNINGS REPORT FROM AMR THE PARENT OF AMERICAN AIRLINES OFFERED SUPPORT FOR THE MARKET A DISAPPOINTING REPORT FROM CONSOLIDATED RAIL YANKED PRICES LOWER CONRAIL PLUMMETED 5 3/8 OR 94 TO 51 3/4 OTHER RAILROAD STOCKS SKIDDED UNION PACIFIC LOST 2 1/8 TO 60 3/4 AND BURLINGTON NORTHERN FELL 1 3/8 TO 55 3/8 AND INVESTORS TOOK PROFITS IN AIRLINES UAL SLUMPED 2 3/4 TO 146 7/8 BUT AMR ADDED 1/4 TO 71 1/2 FOR TRADERS THOUGH THE SESSION WAS MORE LIKE A ROLLER COASTER RIDE THAN THEIR MORNING COMMUTE THE DOW JONES INDUSTRIAL AVERAGE OPENED LOWER ON WEAKNESS IN THE BOND MARKET AND SOARED TO A GAIN OF MORE THAN 30 POINTS AT MIDAFTERNOON BEFORE FALLING BACK LATE IN THE DAY THE INDUSTRIAL AVERAGE CLOSED WITH A LOSS OF 1027 OR 030 TO 342917 WHILE THE DOW JONES TRANSPORTATION AVERAGE TUMBLED 3848 OR 231 TO 162728 BROADER MARKET INDEXES FELL MORE SHARPLY THAN THE INDUSTRIAL AVERAGE BUT JUST HALF AS FAR AS THE TRANSPORTATION GROUP I THINK THIS IS CHARACTERISTIC OF A MARKET IN TRANSITION THERE IS MASSIVE CONFUSION AND NO ONE WANTS TO GET CAUGHT IN THE BIG DOWNDRAFT SAID JOSEPH MCALINDEN CHIEF INVESTMENT OFFICER AT DILLON READ & CO THE LATE SELLING OVERSHADOWED A SHARP RALLY IN SHARES OF CATERPILLAR ITS BETTERTHANEXPECTED EARNINGS REPORT HAD HELPED IGNITE THE BUYING THAT SWEPT THROUGH STOCKS EARLIER IN THE DAY BUT IN THE END EVEN ITS 5 1/4POINT GAIN COULDN'T BUOY THE MARKET ITS SHARES CLOSED AT 67 1/2 PART OF THE REASON PRICES ERODED IN THE AFTERNOON TRADERS SAID WAS A GROWING SLIDE IN DRUG STOCKS ALTHOUGH THAT GROUP WAS BATTERED FOR MUCH OF THE FIRST QUARTER PHARMACEUTICAL SHARES RECENTLY HAD BEGUN TO REBOUND JOINING TRANSPORTATION SHARES AS ONE OF THE FEW AREAS OF REMAINING STRENGTH YESTERDAY THOUGH MERCK DECLINED 1 5/8 TO 35 1/8 PFIZER SHED 2 TO 64 JOHNSON & JOHNSON SLIPPED 1 5/8 TO 40 5/8 AND BRISTOLMYERS SQUIBB FELL 2 3/8 TO 58 5/8 BRISTOLMYERS REPORTED WEAKERTHANEXPECTED FIRSTQUARTER EARNINGS WEDNESDAY THE US DOLLAR WHOSE WEAKNESS HAS BEEN A SOURCE OF INCREASING CONCERN FOR STOCK INVESTORS LOST GROUND AGAINST MAJOR CURRENCIES AGAIN IT HAD ADVANCED AGAINST THE GERMAN MARK INTRADAY AFTER THAT COUNTRY'S CENTRAL BANK TRIMMED INTEREST RATES BUT THOSE GAINS EVAPORATED DILLON READ'S MR MCALINDEN SAID A LARGE PART OF INVESTORS' CONFUSION STEMS FROM RECENT WEAK READINGS ON THE ECONOMY WHILE POOR WEATHER CONDITIONS HAVE BEEN BLAMED FOR MUCH OF THE SLUGGISHNESS INVESTORS AREN'T YET CONVINCED THAT THE ECONOMY WON'T CONTINUE TO SLIDE YESTERDAY'S ECONOMIC DATA WERE WEAK THE LABOR DEPARTMENT SAID INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE ROSE 26000 LAST WEEK TO 359000 A RISE TO JUST 349000 HAD BEEN FORECAST BY ANALYSTS BUT JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH FOR ONE THINKS THE ECONOMIC RECOVERY WILL REMAIN SOUND HE RECOMMENDS BUYING STOCKS LIKE CATERPILLAR EVEN AFTER ITS SURGE YESTERDAY AND DOW CHEMICAL WHICH ALSO JUMPED ON POSTIVE EARNINGS NEWS MIDLAND MICH DOW CHEMICAL REPORTED FIRSTQUARTER NET INCOME OF 147 A SHARE COMPARED WITH EARNINGS BEFORE AN ACCOUNTING CHARGE OF 65 CENTS FOR THE YEARAGO PERIOD THE LATEST QUARTER THOUGH INCLUDED A NONRECURRING GAIN OF 1 A SHARE DOW'S STOCK JUMPED 3 1/8 TO 56 WASHINGTON ENERGY LOST 3/8 TO 22 3/8 FOLLOWING ITS LOSS OF 2 3/4 WEDNESDAY ON NEWS THAT THE STAFF OF THE WASHINGTON UTILITIES AND TRANSPORTATION COMMISSION RECOMMENDED A RATE CUT AT ITS WASHINGTON NATURAL GAS UNIT YESTERDAY THE SEATTLE COMPANY POSTED NET INCOME OF 67 CENTS A SHARE FOR THE SECOND QUARTER ENDED LAST MONTH UP FROM 53 CENTS A YEAR AGO CONSOLIDATED RAIL SKIDDED AFTER REPORTING EARNINGS FROM OPERATIONS OF 52 CENTS A SHARE UP FROM NET INCOME OF 42 CENTS LAST YEAR BUT LOWER THAN SOME EXPECTED SHARES OF CSX A RICHMOND VA RAILROAD LOST 1 1/4 TO 73 7/8 IT HAD A LOSS OF NINE CENTS A SHARE IN THE FIRST QUARTER COMPARED WITH NET INCOME OF 60 CENTS A YEAR AGO THE LATEST PERIOD INCLUDED A CHARGE OF 59 CENTS A SHARE FOR RESTRUCTURING CATERPILLAR SURGED AFTER IT POSTED HIGHERTHANEXPECTED FIRSTQUARTER EARNINGS OF 34 CENTS A SHARE SILICON GRAPHICS JUMPED 5 3/8 TO 32 3/8 LATE WEDNESDAY THE COMPANY REPORTED THIRDQUARTER PROFIT OF 30 CENTS A SHARE AFTER A TWOCENTASHARE LOSS A YEAR AGO FIELDCREST CANNON DROPPED 1 3/4 TO 23 1/8 PRUDENTIAL SECURITIES LOWERED ITS INVESTMENT RATING OF THE TEXTILE PRODUCTS CONCERN TO SELL FROM HOLD AFTER THE COMPANY POSTED A FIRSTQUARTER LOSS OF 555 A SHARE LATE WEDNESDAY THE LOSS IS AFTER A 586ASHARE ACCOUNTING CHARGE CUMMINS ENGINE TUMBLED 6 1/4 TO 89 7/8 A LEHMAN BROTHERS ANALYST CUT A RATING ON THE STOCK A TRADER AT THE BROKERAGE FIRM SAID INGERSOLLRAND JUMPED 2 1/8 TO 33 ANOTHER LEHMAN SOURCE SAID THE FIRM UPGRADED A RATING ON THAT STOCK TENNECO TOPPED THE BIG BOARD MOSTACTIVES LIST EASING 1/4 TO 46 5/8 ON VOLUME OF 84 MILLION SHARES AN OFFERING OF 235 MILLION ADDITIONAL SHARES OF ITS COMMON WAS MADE AT 4650 A SHARE ALZA CORP TUMBLED 5 3/8 TO 28 1/2 EVEN THOUGH THE PHARMACEUTICAL COMPANY REPORTED EARNINGS FROM OPERATIONS OF 26 CENTS A SHARE FOR THE LATEST PERIOD UP FROM NET INCOME OF 20 CENTS A YEAR AGO 9304230038 930423 BUSINESS BRIEF SIERRA ONLINE INC FIRM TO POST GREATER LOSS THAN EXPECTED FOR FISCAL '93 SIERRA ONLINE INC SAID IT WILL REPORT A LOSS FOR ITS FOURTH QUARTER ENDED MARCH 31 THAT IS SIGNIFICANTLY GREATER THAN PREVIOUSLY EXPECTED THIS IS THE SECOND TIME IN ABOUT A MONTH THAT THE COMPANY IN OAKHURST CALIF HAS WARNED ITS LOSS WILL EXCEED EXPECTATIONS LAST MONTH SIERRA SAID ITS LOSS COULD BE MORE THAN 30 CENTS A SHARE AT A TIME WHEN ANALYSTS WERE EXPECTING THE COMPUTER GAME CONCERN TO LOSE BETWEEN 10 AND 20 CENTS A SHARE THE COMPANY HAS 74 MILLION SHARES OUTSTANDING SIERRA SAID REVENUE IN ITS FOURTH QUARTER WAS ABOUT 30 HIGHER THAN A YEAR AGO FISCAL 1993 REVENUE WAS ABOUT 50 MILLION OR 17 HIGHER THAN THOSE POSTED IN FISCAL 1992 SIERRA BLAMED PART OF THE EXPECTED LOSS ON COSTS ASSOCIATED WITH ITS UNIT THE SIERRA NETWORK THE UNIT FOUNDED IN 1991 ALLOWS PEOPLE TO COMPETE IN INTERACTIVE MULTIPLAYER GAMES VIA TELEPHONE LINES AND PERSONAL COMPUTERS 9304230037 930423 WORLD MARKETS EUROPEAN STOCKS RISE ON CUT IN GERMAN RATES JAPANESE EQUITIES FALL FOR FIFTH SESSION IN ROW BY GLENN WHITNEY AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL LONDON SURPRISE CUTS IN KEY GERMAN INTEREST RATES CHEERED STOCK MARKETS ACROSS EUROPE AND BOLSTERED WEAKER CURRENCIES IN THE EUROPEAN EXCHANGE RATE MECHANISM AGAINST THE GERMAN MARK THE RATE CUTS BY THE BUNDESBANK GERMANY'S CENTRAL BANK WERE QUICKLY FOLLOWED BY SIMILAR REDUCTIONS BY CENTRAL BANKS IN BELGIUM DENMARK AUSTRIA AND ITALY PROMPTING SPECULATION THAT MONETARY POLICY WOULD BE EASED BY A GREATER MARGIN THAN WAS PREVIOUSLY ANTICIPATED THE RATE CUT SHOWS THAT THE BUNDESBANK IS STEADILY CONTINUING ITS STEPBYSTEP APPROACH SAID NORBERT BRAEMS A MARKET ECONOMIST AT BARCLAYS DE ZOETE WEDD IN FRANKFURT THEY'RE CONCERNED IF THEY CUT TOO AGGRESSIVELY THE MARK COULD FALL SHARPLY AGAINST THE DOLLAR AND RAISE IMPORT PRICES AVINASH PERSAUD AN ECONOMIST AT UBS IN LONDON SAID THE BUNDESBANK'S REDUCTIONS WERE MORE NOTEWORTHY FOR THEIR TIMING RATHER THAN THEIR MAGNITUDE THE RELAXATION OF BUNDESBANK POLICY IN THE CONTEXT OF FASTER MONEY SUPPLY GROWTH AND THE DETERIORATION OF GERMANY'S FISCAL POSITION IMPLIES NEW AND INCREASED CONCERN WITH THE WEAKNESS OF THE WESTERN PORTION OF THE GERMAN ECONOMY MR PERSAUD SAID HE SAID THE MOST LASTING EFFECT OF THE BUNDESBANK ACTION WILL BE PROVIDING A FLOOR FOR THE DOLLAR AT CURRENT LEVELS HE ADDED THIS MOVE REASSURES THE MARKET JUST AS DOUBTS HAD BEGUN TO SET IN THAT THE BUNDESBANK WOULD SANCTION FURTHER INTEREST RATE CUTS THIS YEAR TRADING ON FRANKFURT'S STOCK EXCHANGE ENDED BEFORE THE BUNDESBANK MADE ITS ANNOUNCEMENTS AND THE DAX 30STOCK INDEX FELL 013 POINT AT 166674 IN PARIS EQUITY PRICES ADDED NEARLY THREEQUARTERS OF A PERCENTAGE POINT AS THE CAC40 INDEX ROSE 1257 POINTS TO 194446 CLEARANCE FOR BANK OF FRANCE JAMES CORNISH AN ECONOMIST AT NATWEST MARKETS IN LONDON SAID HE THINKS THE GERMAN MOVES PROBABLY WILL ALLOW THE BANK OF FRANCE TO CUT RATES FURTHER NEXT WEEK THE MARKETS ARE CONFIDENT ABOUT FRANCE MR CORNISH SAID AS LONG AS THEY ARE SEEN TO BE FOLLOWING THE STRONG FRANC POLICY RATES HAVE FURTHER SCOPE TO FALL ON LONDON'S STOCK EXCHANGE SHARE PRICES WERE MOSTLY HIGHER ALSO BOOSTED BY A POSITIVE DATA ON UNEMPLOYMENT THE FTSE 100STOCK INDEX GAINED 1150 POINTS TO 288110 THE FTSE 30 INDEX ROSE 188 POINTS TO 22623 VOLUME WAS 7033 MILLION SHARES COMPARED WITH 7377 MILLION SHARES A DAY EARLIER MADRID SHARES WERE AMONG THE BIGGEST BENEFICIARIES OF THE IMPROVED INTERESTRATE EXPECTATIONS THE MADRID GENERAL INDEX GAINED 325 POINTS TO END AT 24570 MILAN STOCK PRICES GAINED 192 BOOSTED IN PART BY GREATER OPTIMISM ABOUT ITALY'S POLITICAL PROBLEMS MARKET REACTION TO THE RATE CUTS WAS COMPLICATED BY ERRONEOUS REPORTS BY MOST MAJOR NEWS AGENCIES THAT THE BUNDESBANK HADN'T ACTUALLY REDUCED RATES WHEN REPORTERS AT THE BUNDESBANK'S HEADQUARTERS ASKED A PRESS SPOKESMAN IF THERE WAS ANY NEWS HE REPLIED NOTHING ON RATES AGENCIES INTERPRETED THAT TO MEAN NO CHANGE IN POLICY AND SENT HEADLINES OUT TO TRADING SCREENS AROUND THE WORLD AFTER ISSUING A NEWS RELEASE ON THE BANK'S YEARLY RESULTS THE SPOKESMAN THEN HANDED OUT A STATEMENT THAT RATES HAD BEEN REDUCED ALL HELL BROKE LOOSE HERE WHEN THE NO RATE CHANGE WAS REPORTED SAID IAN BLANCE FIXEDINCOME ECONOMIST AT NIKKO EUROPE PLC DEALING ROOMS WERE JUST A MASS OF CONFUSION MR BLANCE SAID THE MARKET IS INCREASINGLY GETTING THE IDEA THAT THE BUNDESBANK DIRECTORS ARE SPLIT ON MONETARY POLICY AND THAT A LARGE CONTINGENT IS VASTLY MORE CONCERNED ABOUT THE INTENSIFYING RECESSION THAN ABOUT INFLATION SOME PEOPLE ARE BOUND TO START THINKING THAT INTEREST RATE CUTS ARE GOING TO START COMING THICK AND FAST MR BLANCE SAID TOKYO STOCKS DROPPED FOR A FIFTH CONSECUTIVE SESSION AS THE JAPANESE YEN DASHED INVESTORS' HOPES THAT ITS SURGE AGAINST THE US DOLLAR HAD PEAKED THE NIKKEI 225STOCK INDEX WHICH FELL 5542 POINTS WEDNESDAY LOST 18170 TO 1959131 NEAR THE INTRADAY LOW OF 1957778 FIRST SECTION VOLUME WAS ESTIMATED AT 380 MILLION SHARES DOWN FROM 3951 MILLION SHARES A DAY EARLIER LOSING ISSUES SWAMPED GAINING ISSUES 721318 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH FELL 1078 POINTS WEDNESDAY DECLINED 953 TO 152303 IN TOKYO TRADING FRIDAY THE NIKKEI INDEX ROSE 8894 POINTS TO CLOSE THE MORNING SESSION AT 1968025 THE YEN WHICH RETREATED SHARPLY DURING TOKYO'S MORNING SESSION THURSDAY FROM A RECORD HIGH THE DAY BEFORE SURGED IN THE AFTERNOON ON A NEWS REPORT QUOTING A US TREASURY OFFICIAL AS SAYING THE US FAVORS A STRONG YEN TO COUNTER THE TWO COUNTRIES' TRADE IMBALANCE AND SHARE PRICES WHICH HAD GAINED IN THE MORNING ON THE YEN'S EASING SPUN INTO REVERSE AND DRAGGED THE NIKKEI DOWN FROM ITS TRADING HIGH OF 2011686 SOME PROFITTAKING ALSO OCCURRED AS WELL AS BASKET ARBITRAGE SELLING THE NIKKEI'S CLOSING LEVEL THURSDAY WAS ABOUT 1100 POINTS OR 52 BELOW WHERE IT STOOD A WEEK EARLIER WITH THE YEN DRIVING THE STOCK MARKET RECENTLY WIDESPREAD BULLISHNESS HAS BEEN REPLACED BY CAUTIOUSNESS TELECOMMUNICATIONS SHARES WERE HIT HARD AS WERE LARGECAPITALIZATION ISSUES BLUECHIP EXPORTERS AND UTILITIES IN SYDNEY STOCKS REBOUNDED TO CLOSE AT THE HIGHEST LEVEL IN THREE YEARS PARTLY ON STRENGTH IN BANKING MINING AND GOLD SHARES IN HONG KONG PRICES DROPPED AS SINOBRITISH TALKS ON THE COLONY'S GOVERNANCE OPENED IN CHINA MANILA STOCKS ROSE ON BARGAINHUNTING WELLINGTON SHARES SURGED ON STRONG DEMAND FOR FORESTRYRELATED ISSUES WHICH ACCOUNT FOR MORE THAN A QUARTER OF THE MARKET'S TOTAL VALUE TAIPEI SHARES SOARED ON NEWS THAT A TAIWAN LEGISLATIVE COMMITTEE PASSED A REVISION OF THE COPYRIGHT LAW THAT ACCEPTS US DEMANDS ON ENFORCEMENT OF INTELLECTUAL PROPERTY RIGHTS IN BANGKOK STOCK PRICES SURGED ON POSITIONING FOR AN ANTICIPATED CLAMPDOWN ON STOCK MANIPULATION AND FOR POSTINGS OF FIRSTQUARTER BANK EARNINGS AMONG CORPORATE DEVELOPMENTS IN MILAN FIAT JUMPED 350 LIRE OR 55 TO 6760 LIRE 442 THE AUTO MAKER'S RALLY WAS ATTRIBUTED PARTLY TO CONTINUED MARKET SPECULATION THAT FIAT WILL SIGN A STRATEGIC ACCORD WITH RENAULT OF FRANCE TO BUY RECOMMENDATIONS BY SEVERAL ANALYSTS AND TO FIAT'S COOPERATION WITH AUTHORITIES IN AN ITALIAN CORRUPTION SCANDAL 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 9304230036 930423 INTERNATIONAL DAYS BEFORE HIGHSTAKES REFERENDUM YELTSIN CAMPAIGN IS LISTLESS AND ADRIFT BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW ON A RECENT SWING THROUGH RUSSIA'S KUZBASS COALMINING REGION RUSSIAN PRESIDENT BORIS YELTSIN WAS ASKED BY A REPORTER IF HE EXPECTED TO BE VICTORIOUS IN SUNDAY'S NATIONWIDE REFERENDUM A US POLITICIAN MIGHT HAVE RESPONDED BY FLASHING THE V SIGN OR OTHERWISE EXUDING CONFIDENCE BUT MR YELTSIN SEEMED ILL AT EASE I'M A PRESIDENT NOT A FORTUNE TELLER HE SAID GRUFFLY AND WALKED AWAY HE'S NOT MUCH OF A CAMPAIGNER EITHER DURING THE RUNUP TO SUNDAY'S VOTE OF CONFIDENCE IN HIS PRESIDENCY AND ECONOMICREFORM POLICY MR YELTSIN HAS SEEMED CURIOUSLY OUT OF TOUCH WITH THE ELECTORATE HIS CAMPAIGN LISTLESS MOREOVER HIS AIDES IN MOSCOW HAVE PROVIDED LITTLE BACKUP HELP TO PROYELTSIN FORCES AROUND THE COUNTRY WHO ARE DESPERATE FOR DIRECTION AND ASSISTANCE AS THEY TRY TO BRING HOME THE VOTE MR YELTSIN AIDES SAY IS BANKING ON THE SUPPORT OF RUSSIA'S MASSES WHO OVERWHELMINGLY ELECTED HIM PRESIDENT IN 1991 BUT TIMES HAVE CHANGED PRICES ARE WAY UP LIVING STANDARDS ARE WAY DOWN AND CRIME IS RAMPANT A SWING THROUGH SEVERAL REGIONS SUGGESTS THAT VICTORY FOR MR YELTSIN IS BY NO MEANS A GIVEN MOST POLLS SHOW HIM WITH A LEAD THOUGH THE MARGIN HAS NARROWED IN RECENT DAYS AND SUCH SURVEYS TEND TO BE IMPRECISE MR YELTSIN REMAINS RUSSIA'S MOST POPULAR NATIONAL POLITICIAN BUT THAT'S PARTLY BY DEFAULT BECAUSE NO ONE ELSE HAS ANY SIGNIFICANT NATIONAL FOLLOWING AND THE WORDING OF THE REFERENDUM ASKS VOTERS TO ANSWER YES OR NO WHETHER THEY HAVE TRUST IN MR YELTSIN AND WHETHER THEY APPROVE OF HIS SOCIOECONOMIC POLICIES IN EFFECT HE IS RUNNING AGAINST HIMSELF AND THAT IS A RACE HE COULD LOSE IT SEEMS ODD THEREFORE THAT MR YELTSIN HASN'T MADE MORE OF A DIRECT CAMPAIGN PUSH AT THE APRIL 34 SUMMIT IN VANCOUVER BRITISH COLUMBIA WHEN PRESIDENT CLINTON EXHORTED THE RUSSIAN PRESIDENT TO WIN WIN MR YELTSIN VOWED HE WOULD CAMPAIGN AROUND THE COUNTRY PERHAPS EVERY DAY INSTEAD IN HIS FEW CAMPAIGN TRAVELS MR YELTSIN HAS CONCENTRATED ON MEETING FACTORY DIRECTORS CHURCH LEADERS AND OTHER LOCAL OFFICIALS WHILE MR YELTSIN NEEDS THE BACKING OF SUCH FIGURES TO FUNCTION EFFECTIVELY HIS IMMEDIATE FATE RESTS IN THE HANDS OF THE PEOPLE THOUGH HE PORTRAYS HIMSELF AS THE CONSUMMATE RUSSIAN DEMOCRAT MR YELTSIN HAS SEEMED UNCOMFORTABLE DEALING DIRECTLY WITH VOTERS ON HIS TRIP TO KUZBASS MR YELTSIN SURROUNDED BY BODYGUARDS DASHED IN AND OUT OF MEETINGS WITH MINING OFFICIALS PENSIONERS AND WOMEN AT A MATERNITY WARD RARELY STOPPING TO PRESS THE FLESH NO PEP RALLIES WERE HELD THE PRESIDENT HAD PLANNED AN IMPROMPTU WALKABOUT AFTER A MEETING WITH LOCAL OFFICIALS BUT CANCELED IT WHEN A SMALL BUT BOISTEROUS GROUP OF HECKLERS SHOWED UP MR YELTSIN'S MOST EFFECTIVE PERSONAL APPEAL CAME VIA TAPED TELEVISION ON TUESDAY TV SHOWED A SYMPATHETIC ONEHOUR DAYINTHELIFE PORTRAYAL OF THE RUSSIAN PRESIDENT AT HOME WITH HIS FAMILY MR YELTSIN'S POLITICAL MACHINE ALSO HAS PROVIDED ONLY WEAK SUPPORT IN THE GRIMY SIBERIAN INDUSTRIAL CITY OF NOVOSIBIRSK ANATOLY MANOKHIN IS DESPONDENT AS HEAD OF THE LOCAL YELTSIN SUPPORT HEADQUARTERS MR MANOKHIN IS RESPONSIBLE FOR DELIVERING VOTES TWO YEARS AGO MR YELTSIN TOOK 70 OF THE VOTE HERE WELL ABOVE THE 57 HE POLLED NATIONWIDE BUT IN THE REFERENDUM MR MANOKHIN SAYS THE PRESIDENT WILL BE LUCKY TO GET 50 IN MOSCOW MR YELTSIN'S ADVISERS HAVE SAID THEY PLAN TO FOCUS THEIR NATIONAL VOTEGETTING EFFORTS IN RUSSIA'S CITIES ABANDONING THE COUNTRYSIDE AS A LOST CAUSE BECAUSE THE RURAL POPULATION TENDS TO BE CONSERVATIVE BUT IN NOVOSIBIRSK A CITY OF TWO MILLION THAT SHOULD BE A KEY YELTSIN TARGET LITTLE CAMPAIGNING HAS TAKEN PLACE JUST A FEW DAYS BEFORE THE VOTE MR MANOKHIN WAS STILL WAITING FOR MOSCOW TO SEND PROMISED FLIERS AND OTHER MATERIALS AS OF LAST WEEK THE ONLY STEP MOSCOW HAD TAKEN TO BOLSTER THE CAMPAIGN WAS TO SEND A GROUP OF AGING ACTRESSES TO WHIP UP LOCAL SUPPORT MR MANOKHIN SENT THEM HOME ON THE NEXT PLANE I TOLD THEM IT'S PROBABLY BETTER IF YOU DON'T DO ANYTHING' HE SAYS IN UFA CAPITAL OF RUSSIA'S OILRICH AUTONOMOUS REPUBLIC OF BASHKORTOSTAN IN THE URALS SERGEI SHIKHOVTSEV IS SIMILARLY CONCERNED LIKE MR YELTSIN THE 62YEAROLD FORMER ELECTRICAL ENGINEER QUIT THE COMMUNIST PARTY IN 1990 BEFORE IT BECAME FASHIONABLE TO DO SO TODAY MR SHIKHOVTSEV IS PART OF MR YELTSIN'S SMALL ARMY OF VOLUNTEERS IN UFA THE GROUP HAS NO OFFICE AND NO PHONES FINALLY ON WEDNESDAY IT PRINTED UP SOME CRUDE PROYELTSIN FLIERS IT'S EASIER TO BLAME EVERYTHING ON YELTSIN MR SHIKHOVTSEV SAYS UNFORTUNATELY HE'LL PROBABLY LOSE BIG IN BASHKORTOSTAN CONSERVATIVE LEADERS IN THE REPUBLIC ARE GIDDY AT THE PROSPECT TWO YEARS AGO WHEN HIS POPULARITY WAS AT ITS PEAK MR YELTSIN WON JUST 46 OF THE LOCAL VOTE HE'S GOT ONE VOTECLINTON'S LAUGHS MURTAZA RACHIMOV CHAIRMAN OF THE REPUBLIC'S CONSERVATIVE SUPREME SOVIET MR RACHIMOV AN OPPONENT OF REFORM WHO NONETHELESS CALLS HIMSELF A REFORMER DOESN'T THINK THE REFERENDUM WILL RESOLVE THE POWER STRUGGLE THAT HAS PARALYZED THE KREMLIN SINCE DECEMBER WHETHER YELTSIN WINS OR LOSES THE REFERENDUM WILL SETTLE NOTHING FOR RUSSIA MR RACHIMOV SAYS THAT VIEW WHICH IS WIDELY SHARED HELPS FUEL A GENERAL SENSE OF APATHY AMONG RUSSIANS STILL A SURPRISINGLY HIGH NUMBER SAY THEY WILL VOTE SURVEYS ESTIMATE THAT 60 OF RUSSIA'S 107 MILLION ELIGIBLE VOTERS WILL CAST THEIR BALLOTS THE REFERENDUM WILL INCLUDE FOUR QUESTIONS IN ADDITION TO ASKING WHETHER RUSSIANS HAVE CONFIDENCE IN MR YELTSIN AND HIS ECONOMIC POLICIES THE BALLOT ASKS WHETHER VOTERS WANT EARLY ELECTIONS FOR THE PRESIDENT AND PARLIAMENT ELECTION OFFICIALS NOTING RUSSIA'S VAST TERRITORY SAY THEY DON'T EXPECT A FIRM TALLY FOR AT LEAST A WEEK IN CERTAIN FARFLUNG AREAS VOTING HAS ALREADY BEGUN IN THE FAR NORTH FOR EXAMPLE REINDEER HERDERS HAVE ALREADY MARKED THEIR BALLOTS 9304230035 930423 BANKAMERICA REPORTS PROFIT FOR 1ST QUARTER RESULTS ARE SLIGHTLY LOWER THAN FORESEEN MERGER EXPANDED INTANGIBLES BY RALPH T KING JR STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO BANKAMERICA CORP POSTED NET INCOME OF 484 MILLION FOR THE FIRST QUARTER ALONG WITH MORE THAN 1 BILLION IN PREVIOUSLY REPORTED ACCOUNTING CHARGES THAT DEPLETED ITS TANGIBLE CAPITAL BUT DID NOT REDUCE EARNINGS THE BANK'S PROFIT EQUAL TO 119 A SHARE WAS SLIGHTLY BELOW ANALYSTS' EXPECTATIONS OF 123 A SHARE IN 1992'S FIRST QUARTER IT EARNED 303 MILLION OR 122 A SHARE ALTHOUGH THE YEARAGO FIGURES DON'T INCLUDE THE SECURITY PACIFIC CORP MERGER COMPLETED LAST APRIL AND SO AREN'T COMPARABLE BANKAMERICA SHARES CLOSED AT 4850 DOWN 625 CENTS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE WE'VE NOW COMPLETED THE MECHANICS OF THE MERGER SAID LEWIS COLEMAN VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER IT'S TIME TO SHOW PROGRESS IN EARNINGS PER SHARE THROUGH HIGHER REVENUE AND CONTINUED COST REDUCTIONS BANKAMERICA'S BALANCE SHEET IS LADEN WITH 66 BILLION IN GOODWILL AND OTHER INTANGIBLE ITEMS COMPARED WITH 55 BILLION AT THE END OF 1992 AND 796 MILLION A YEAR AGO MOST OF THE 58 BILLION ADDED OVER THE LAST YEAR INCLUDING ABOUT 1 BILLION IN THE LATEST QUARTER STEMS FROM PROBLEMS UNCOVERED IN SECURITY PACIFIC'S LOAN PORTFOLIO AND FROM MERGERRELATED CHANGES IN INCOMETAX ACCOUNTING THE BANK SAID THE INCREASE IN INTANGIBLES RELATED TO THE SECURITY PACIFIC MERGER IS OVER BECAUSE OF SOCALLED PURCHASE ACCOUNTING THE BANK CAN WRITE OFF SECURITY PACIFIC'S WOES OVER 25 YEARS RATHER THAN TAKE AN UPFRONT CHARGE AGAINST EARNINGS ON THE OTHER HAND THE BANK IS REQUIRED TO IMMEDIATELY DEDUCT THESE INTANGIBLE ITEMS FROM CAPITAL THUS ITS TANGIBLE COMMON EQUITY RATIO HAS FALLEN FROM NEARLY 6 IN EARLY 1992 TO ABOUT 49 CURRENTLY THAT RATIO IS ABOVE REGULATORY MINIMUMS BUT ANALYSTS SAY IT IS LOW ENOUGH THAT THE EXPANSIONMINDED BANK PROBABLY WOULD HAVE TO RAISE NEW CAPITAL BEFORE MAKING ANOTHER LARGE ACQUISITION IN THE NEAR FUTURE THE BANK SAID IT COMPLETED ITS ACQUISITION OF FIRST GIBRALTAR BANK BASED IN IRVING TEXAS IN THE PERIOD GOODWILL OR THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND BOOK VALUE RECORDED IN THAT DEAL TOTALED 135 MILLION GOODWILL FROM THE SECURITY PACIFIC DEAL HAS SWELLED TO ABOUT 4 BILLION THE BIG CHALLENGE NOW FOR BANKAMERICA IS TO INCREASE REVENUE AMID CONTINUED ECONOMIC WEAKNESS IN ITS HOME STATE REVENUE AT 4 BILLION WAS ESSENTIALLY FLAT COMPARED WITH THE FOURTH QUARTER NET INTEREST INCOME WAS DOWN 5 WHILE NONINTEREST INCOME ROSE 8 LOAN LEVELS ALSO WERE FLAT CREDIT QUALITY IMPROVED AS IT HAS FOR OTHER BIG CALIFORNIA BANKS THE LOANLOSS CHARGE WAS 235 MILLION COMPARED WITH 260 MILLION IN THE FOURTH QUARTER AND 230 MILLION A YEAR EARLIER A DECLINE IN NONACCRUAL ASSETS AND FORECLOSURES PLUS VARIOUS TAX EFFECTS REDUCED TOTAL PROBLEM ASSETS AND ASSETS HELD FOR SALE TO 878 BILLION DOWN FROM 1009 BILLION IN THE PREVIOUS QUARTER MR COLEMAN SAID THE BANK IS REAPING ANNUAL COST SAVINGS FROM THE SECURITY PACIFIC MERGER AT A RATE OF 880 MILLION TWOTHIRDS OF THE WAY TOWARD ITS 1995 GOAL OF 12 BILLION SEPARATELY BANKAMERICA DECLINED TO COMMENT ON A LAWSUIT FILED AGAINST THE COMPANY ALLEGING VIOLATIONS OF FEDERAL LAWS GOVERNING ELECTRONIC BANK DEPOSITS THE CLASSACTION SUIT FILED IN US DISTRICT COURT IN SAN FRANCISCO CONCERNS SECURITY PACIFIC'S ALLEGED CONDUCT BEFORE THE MERGER THE LAWSUIT CONTENDS THAT SECURITY PACIFIC FAILED TO GIVE TIMELY CREDIT TO ACCOUNTS WITH ELECTRONICALLY DEPOSITED PAYCHECKS AND OTHER FUNDS BY NOT DOING SO SECURITY PACIFIC NOT ONLY GAINED UNLAWFUL USE OF CUSTOMERS' FUNDS BUT ALSO PENALIZED CUSTOMERS BY IMPOSING OVERDRAFT CHARGES WHEN THE DELAY CAUSED THEM TO BOUNCE CHECKS THE PLAINTIFFS CONTEND THE SUIT SEEKS UNSPECIFIED DAMAGES 9304230034 930423 INTERNATIONAL WORLD ECONOMY US'S EGOCENTRIC TRADE ATTITUDE RILES PARTNERS BUT CAN PRODUCE GOOD RESULTS BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON GENERALLY THE US FINDS TWO DISTINCT SIDES TO EVERY TRADE DISPUTE THE CORRECT AMERICAN VIEW AND THE TOTALLY WRONG ONE HELD BY SOMEBODY ELSE IT IS AN EGOCENTRIC ATTITUDE THAT WINS FEW FRIENDS OVERSEAS AND MIGHT NOT ALWAYS SERVE US INTERESTS AT HOME BUT IT PERSISTS SOME SAY INCREASES AND OFTEN RESULTS IN UNILATERAL EFFORTS TO IMPOSE US RULES ON OTHERS WHILE THERE IS DISPUTE ABOUT WHETHER THIS HABIT PRODUCES SERIOUS ECONOMIC OR POLITICAL GAINS THERE ISN'T ANY DOUBT THAT IT RILES FOREIGN FRIENDS AND SOME US EXPERTS SAY THAT IS JUST FINE BECAUSE THE GLOBAL TRADING SYSTEM IS BY ALL ACCOUNTS IMPERFECTLY CONSTRUCTED SUGGESTS GARY HUFBAUER OF THE INSTITUTE FOR INTERNATIONAL ECONOMICS HERE THERE IS A GOOD ARGUMENT FOR USING ONESIDED METHODS TO FORCE CHANGE IN CERTAIN CASES BUT ONLY IF THEY OPEN TRADE DOORS WIDER OR LEAD TO IMPROVED MULTILATERAL METHODS FOR SETTLING DISPUTES THE TACTIC WORKED THIS WEEK FOLLOWING AMERICAN THREATS TO RETALIATE AGAINST EUROPEAN COMMUNITY PUBLIC PROCUREMENT RULES THE TWO SIDES LARGELY SETTLED THEIR DIFFERENCES AVERTING A NASTY TRADE FRACAS SOME BUY AMERICA AND BUY EUROPE RULES WERE SCRAPPED AND BOTH SIDES AGREED TO TACKLE MORE IMPORTANT GLOBAL ISSUES INCLUDING A SEARCH FOR SENSIBLE WAYS TO RESOLVE QUARRELS AND PERHAPS A JOINT ASSAULT ON JAPANESE TRADE RESTRAINTS BUT THE RELATIVELY HAPPY ENDING IN THIS CASE WON'T CLOSE OFF COMPLAINTS ABOUT AMERICA'S TENDENCY TO PURSUE UNILATERAL ACTIONS JUST LAST WEEK AN EC REPORT CONCLUDED UNILATERALISM IS A CHARACTERISTIC ELEMENT OF MANY US LEGISLATIVE PROVISIONS IT GENERALLY TAKES THE FORM OF UNILATERAL SANCTIONS OR RETALIATORY MEASURES AGAINST OFFENDING' COUNTRIES ON THE BASIS OF A US JUDGMENT OF THEIR BEHAVIOR WITHOUT REFERENCE TO AND OFTEN IN DEFIANCE OF AGREED MULTILATERAL RULES THE EUROPEANS JAPANESE AND OTHERS PERCEIVE MANY SINS THESE INCLUDE US SECTION 301 TRADE LAWS THAT ALLOW WASHINGTON TO FIND ANYONE GUILTY OF UNJUSTIFIABLE PRACTICES AND APPLY PENALTIES THERE IS ALSO AN EXPECTED 25 TARIFF ON JAPANESE MINIVANS WHICH TOKYO SAYS IS UNDESERVED AND WANTS TO REFER TO NEUTRAL ARBITERS SUCH SANCTIONS ALWAYS INVOLVE DOUBLE STANDARDS AND WILL ONLY WORSEN THE NEGOTIATING ATMOSPHERE BETWEEN OUR TWO COUNTRIES SAYS A JAPANESE DIPLOMAT YET SOME UNILATERAL ACTIONS GET QUALIFIED SUPPORT FROM US SPECIALISTS WHO CONSIDER THEMSELVES FREE TRADERS RATHER THAN PROTECTORS OF SPECIAL INTERESTS MR HUFBAUER AN OUTSPOKEN ADVOCATE OF OPEN TRADE SAYS MANY UNILATERAL AMERICAN ACTIONS ARE CASEDRIVEN OFTEN REFLECTING WEAKNESSES IN TRADE RULES OR THE MECHANISMS DESIGNED TO APPLY THEM FOR EXAMPLE MANY CASES CONCERN ITEMS NOT COVERED BY THE GENERAL AGREEMENT ON TARIFFS AND TRADE OR SUBJECT TO GATT PANELS SERVICES AND INTELLECTUAL PROPERTY ARE LEADING EXAMPLES LIKEWISE MUCH AGRICULTURAL TRADE OCCURS OUTSIDE THE GATT SYSTEM MOREOVER GATT DISPUTERESOLUTION PANELS USUALLY APPLY RULES NARROWLY AND DON'T BUILD CASE LAW IN ENGLISH COMMON LAW TRADITION WHICH MOST INDUSTRIAL NATIONS DON'T USE ANYWAY OR GATT MEMBERS MAY IGNORE RULINGS THEY DON'T LIKE WASHINGTON CONTENDS FRANCE DID SO IN AN OIL SEEDS CASE LEADING TO LAST FALL'S RETALIATION THREATS WHICH ALMOST SANK WORLD TRADE TALKS BUT UNILATERALISM HAS ITS DANGERS A WASHINGTON TRADE LAWYER SAYS THE US USUALLY TRIES HARDER TO OPEN FOREIGN MARKETS THAN TO INCREASE ACCESS HERE IN A RECIPROCAL WAY IN ADDITION IT IS MORE LIKELY TO BROWBEAT SMALL NATIONS THAN BIGTIMERS LIKE THE EC WHERE IT MIGHT NOT WIN THOUGH THIS WEEK'S EXAMPLE PROVES THIS WON'T ALWAYS HAPPEN SOME US TRADE LAWS ARE MAINLY POLITICAL AND EARN EVEN WIDER CRITICISM LAST YEAR'S CUBAN DEMOCRACY ACT FOR EXAMPLE TIGHTENS AN EMBARGO BY PRESSURING OTHERS TO OBEY IT EXAMPLE NO FOREIGN SHIP THAT VISITS CUBA CAN CALL IN THE US FOR 180 DAYS IT ALSO OUTLAWS ALL CUBA TRADE BY OVERSEAS BRANCHES OF AMERICAN COMPANIES EVEN IF NO US WORKERS OR PRODUCTS ARE INVOLVED UNITED TECHNOLOGIES CORP FOR ONE OPPOSES THIS UNITED TECHNOLOGIES OFFICIALS SAY IT WON'T HARM THE CUBAN ECONOMY BUT DOES HURT THEIR CARRIER AIRCONDITIONER AND OTIS ELEVATOR SUBSIDIARIES SURRENDERING THE MARKET TO EUROPE AND JAPAN CREATES A SIGNIFICANT IMMEDIATE AND POSITIVE ECONOMIC BENEFIT FOR FOREIGN COMPETITORS OTIS WARNED CONGRESS TO NO AVAIL STILL MANY US TRADE SPECIALISTS TOLERATE UNILATERAL ACTIONS AS ROUGH TACTICS THAT CAN HELP ACHIEVE NOBLE GOALS 9304230033 930423 WHO'S NEWS SPRINT CORP SPRINT CORP WESTWOOD KAN THE TELECOMMUNICATIONS COMPANY SAID RONALD T LEMAY 47 YEARS OLD WAS ELECTED TO ITS BOARD INCREASING THE BOARD'S SIZE TO 17 MEMBERS MR LEMAY IS PRESIDENT OF SPRINT'S LONGDISTANCE TELEPHONE BUSINESS 9304230032 930423 INTERNATIONAL RUSSIAN FIRM GETS BIG LOAN BYPASSING STATE BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW WITH RUSSIA'S TROUBLED GOVERNMENT TOO POOR A CREDIT RISK TO RAISE COMMERCIAL BANK LOANS ABROAD RUSSIAN INDUSTRY IS VENTURING OUT ON ITS OWN AVTOVAZ A RECENTLY PRIVATIZED CAR MAKER HAS BECOME THE FIRST RUSSIAN COMPANY SINCE THE 1917 REVOLUTION TO TAKE OUT A BIG COMMERCIAL LOAN ABROAD WITHOUT A RUSSIAN STATE GUARANTEE UNDER AN AGREEMENT SIGNED LAST WEEK WITH WESTDEUTSCHE LANDESBANK'S NEW YORK OFFICE AVTOVAZ THROUGH A LUXEMBOURGBASED AFFILIATE WILL HAVE ACCESS OVER THE NEXT SEVEN YEARS TO A 100 MILLION REVOLVING CREDIT LINE INSTEAD OF A RUSSIAN STATE GUARANTEE WESTDEUTSCHE LANDESBANK AND ITS PARTNER IN THE DEAL SUDWESTDEUTSCHE LANDESBANK ACCEPTED AS COLLATERAL THE HARDCURRENCY FUNDS PAYABLE TO AVTOVAZ FOR CARS DELIVERED TO DEALERS ABROAD SERGEI BONDARENKO FINANCE DIRECTOR OF AVTOVAZ'S LUXEMBOURG AFFILIATE LM INTERNATIONAL FINANCE SA SAID THE RUSSIAN CAR MAKER EXPORTS 300000 VEHICLES A YEAR FOR THIS IT COLLECTS ABOUT 700 MILLION A YEAR HE SAID MORE THAN ENOUGH TO COVER THE 100 MILLION CREDIT FACILITY FOR AN ECONOMY STRUGGLING TO WRENCH ITSELF FROM STATE PLANNING THE AVTOVAZ CREDIT AGREEMENT IS SIGNIFICANT AND GOOD NEWS SAID THE CHIEF ECONOMIST OF THE WORLD BANK'S MOSCOW OFFICE CHARLES BLITZER SUCH PRIVATESECTOR ARRANGEMENTS OFFER ENCOURAGEMENT WHEN NO ONE OUTSIDE OF INTERNATIONAL FINANCIAL INSTITUTIONS IS VOLUNTARILY LENDING TO THE RUSSIAN GOVERNMENT MR BLITZER SAID A WESTERN COMMERCIAL BANKER IN MOSCOW ADDED THAT THE AVTOVAZ DEAL WOULD HAVE A POSITIVE EFFECT ON THE LENDING CLIMATE IN RUSSIA BECAUSE WE SEE THAT A DEAL CAN BE STRUCTURED ONE WAY OR ANOTHER EVEN SO AVTOVAZ'S FINANCIAL TRAILBLAZING DOESN'T GUARANTEE EASY GOING FOR OTHER NEWLY PRIVATIZED RUSSIAN COMPANIES PRODUCER OF MODELS SUCH AS THE LADA NIVA AND SAMARA THE COMPANY IS ONE OF RUSSIA'S BIGGEST AUTO MAKERS ITS EXPORT BUSINESS PROVIDES A LARGE RESERVOIR OF HARDCURRENCY COLLATERAL NOT AVAILABLE TO MANY OTHER RUSSIAN COMPANIES BEYOND THAT AVTOVAZ WAS TURNED INTO A PRIVATE OR JOINT STOCK COMPANY BY A DECREE SIGNED ON JAN 5 BY PRESIDENT BORIS YELTSIN TERMS OF THE COMPANY'S PRIVATIZATION INCLUDE A SPECIAL EXEMPTION FROM CENTRAL BANK REQUIREMENTS ON REPATRIATION OF DOLLAR EARNINGS INTO RUBLES THIS EXEMPTION IS NECESSARY TO ALLOW A PORTION OF AVTOVAZ'S RECEIVABLES TO SERVE AS SECURITY FOR THE NEW COMMERCIAL CREDIT LINE THE EXEMPTION WAS GRANTED SAYS A SPOKESMAN FOR WESTDEUTSCHE LANDESBANK'S NEW YORK OFFICE BECAUSE THE COMPANY PLANS TO USE ITS NEW LOANS TO IMPORT MANUFACTURING EQUIPMENT AND TECHNIQUES 9304230031 930423 WHO'S NEWS PHILIP MORRIS COS PHILIP MORRIS COS NEW YORK EDWARD W SMEDS WAS NAMED TO THE NEWLY CREATED POSITION OF PRESIDENT OF CUSTOMER SERVICE AND OPERATIONS FOR KRAFT GENERAL FOODS NORTH AMERICA A DIVISION OF THE KRAFT GENERAL FOODS UNIT OF THIS TOBACCO LIQUOR AND FOOD CONCERN MR SMEDS 57 YEARS OLD WAS SENIOR VICE PRESIDENT OPERATIONS FOR KRAFT GENERAL FOODS BASED IN DEERFIELD ILL 9304230030 930423 CORPORATE FOCUS DART GROUP IS EMERGING FROM ITS RECESSIONERA SHELL FOUNDER'S SON PLANS TO EXPAND RETAILER'S DISCOUNT STORE CHAINS BY ROBIN GOLDWYN BLUMENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL LANDOVER MD THERE IS LIFE FOR DART GROUP CORP AFTER HERBERT HAFT THE AGGRESSIVE MARKETER'S EMPIRE STRUCK A LOWER PROFILE IN THE LATE 1980S AS THE BUYOUTBOOM COLLAPSE TOOK THE STEAM OUT OF HIS FREQUENT FORAYS INTO THE TAKEOVER MARKET AND THE FAMILY IN A SETTLEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION AGREED NOT TO ACT LIKE AN INVESTMENT COMPANY THE LATE '80S RECESSION POSED A CONSIDERABLE CHALLENGE TO DART'S TWO BIG DISCOUNT OPERATIONS 51OWNED BOOKSELLER CROWN BOOKS CORP AND 66OWNED AUTO SUPPLY HOUSE TRAK AUTO CORP AND THE PARENT WAS FACED WITH HEFTY INTEREST EXPENSES FROM 14 DEBENTURES IT HAD SOLD IN 1985 MR HAFT RAN THE OPERATIONS WITH A TIGHT REIN AND AS LITTLE PUBLIC ATTENTION AS POSSIBLE BUT THESE DAYS THE 72YEAROLD CHAIRMAN AND CHIEF EXECUTIVE SPENDS A GOOD DEAL OF TIME TRAVELING TO THE FORMER SOVIET UNION AND EASTERN EUROPE MR HAFT WHOSE PARENTS CAME FROM UKRAINE EVEN MET BORIS YELTSIN THIS YEAR AND HAS GIVEN ADVICE ON FOOD DISTRIBUTION TO THE FORMER SOVIETS AND THE HUNGARIANS DART GROUP EXECUTIVES AREN'T EVEN SURE JUST HOW MUCH TIME MR HAFT SPENDS AT THE COMPANY OF WHICH HIS FAMILY OWNS ALL THE VOTING STOCK AND 40 OF THE COMMON BUT UNDER THE LEADERSHIP OF HIS SON ROBERT 40 THE COMPANY SEEMS TO BE COMING OUT FROM UNDER ITS SHELL IN TERMS OF BOTH STYLE AND STRATEGY MY FATHER AND I ARE DIFFERENT PERSONALITIES THE YOUNGER MR HAFT SAYS WE'RE ABOUT AS DIFFERENT AS YOU CAN BE OTHERS AGREE HERB IS A SEATOFTHEPANTS GUY A GUT PLAYER AND A BRILLIANT MARKETING GUY SAYS A PERSON FAMILIAR WITH THE COMPANY BUT HIS MANAGEMENT STYLE WAS KIND OF HAPHAZARD AT DART DRUG THE DISCOUNT DRUG CHAIN MR HAFT STARTED AND LATER SOLD HE KEPT THE GUYS ON A VERY SHORT LEASH THE YOUNGER HAFT WHO IS PRESIDENT OF DART CHAIRMAN OF CROWN AND VICE CHAIRMAN OF TRAK SAYS HE IS WILLING TO LET PEOPLE MAKE MISTAKES WHILE HE LAUNCHES PLANS TO DOUBLE DART'S EARNINGS OVER THE NEXT FOUR YEARS TO ABOUT 15 MILLION FROM THE LATEST 12 MONTHS ENDED OCT 31 SALES IN THE FISCAL YEAR ENDED JAN 31 WERE 125 BILLION DART EARNED 47 MILLION A YEAR EARLIER THE LATEST FOR WHICH EARNINGS FIGURES ARE AVAILABLE HE PLANS TO EXPAND TRAK CROWN AND SHOPPERS FOOD WAREHOUSE A 35STORE DISCOUNT SUPERMARKET CHAIN IN THE WASHINGTON AREA OF WHICH DART HOLDS SLIGHTLY MORE THAN 50 HE ALSO MAY SELL SOME ASSETS AND MAKE ACQUISITIONS THAT FIT RETAILING OPERATIONS THE COMPANY LAST YEAR PAID OFF THE REMAINING 60 MILLION OF 250 MILLION IN JUNK DEBT BORROWED DURING THE TAKEOVER HEYDAY AS DE FACTO CHIEF EXECUTIVE FOR THE LAST TWO YEARS MR HAFT HAS INSTALLED NEW EXECUTIVES FOR TRAK AND CROWN AND BEGUN WORKING TO RESTORE DART GROUP'S IMAGE WITH THE INVESTMENT COMMUNITY WE'VE ALWAYS BEEN ALMOST A PRIVATELY HELD PUBLIC COMPANY SAYS R KEITH GREEN PRESIDENT OF TRAK FOR NEARLY THREE YEARS WE'VE NEVER DIVULGED A LOT OF INFORMATION ABOUT THE COMPANY HE SAYS YOU'RE GOING TO SEE THAT CHANGE RECENT RESULTS HAVEN'T BEEN SHINING DART GROUP EARNED ALMOST 12 MILLION IN FISCAL 1990 BUT NET FELL TO 83 MILLION THE NEXT YEAR AND 47 MILLION IN FISCAL 1992 THE YOUNGER MR HAFT CONCEDES THAT DART GROUP'S PERFORMANCE OVER THE LAST FOUR YEARS HAS BEEN UNEVEN BECAUSE THE STRATEGIES HAVEN'T BEEN CLEAR DESPITE THE PERFORMANCE FATHER AND SON RECEIVED HEFTY CASH COMPENSATION IN THE YEAR ENDED JAN 31 1992 THE LATEST FOR WHICH FIGURES ARE AVAILABLE HERBERT HAFT RECEIVED 14 MILLION WHILE ROBERT GOT ABOUT 18 MILLION TRAK A 315 MILLION DISCOUNT RETAILER OF AUTOMOTIVE PARTS AND ACCESSORIES TO THE DOITYOURSELF MARKET EXPECTS RECORD EARNINGS FOR THE JUSTCOMPLETED FISCAL YEAR ITS BEST PERFORMANCE SINCE FISCAL 1988 OFFICIALS CITE GAINS FROM A COMPUTERIZED INVENTORY SYSTEM A BROADER PARTS INVENTORY AND IMPROVED CUSTOMER SERVICE TRAK OPERATES 319 STORES IN WASHINGTON BALTIMORE RICHMOND VA CHICAGO AND THE LOS ANGELES METROPOLITAN AREA AND RANKS EIGHTH AMONG AUTO RETAIL CHAINS IN NUMBER OF STORES CROWN THE NATION'S THIRDLARGEST BOOKSELLER WITH 241 MILLION IN SALES HAS BEEN STRUGGLING FOR SEVERAL YEARS DESPITE RISING SALES EARNINGS HAVE BEEN ESSENTIALLY FLAT SINCE FISCAL 1989 DUE TO INCREASED COMPETITION FROM OTHER BOOKSELLERS AND EXPANSION COSTS EARNINGS DECLINED FOR ALL FOUR OF THE MOST RECENT QUARTERS CROWN OPERATES 247 STORES INCLUDING 31 SUPER CROWN UNITS R BENTLEY OFFUTT WHO OWNS AN INSTITUTIONAL RESEARCH AND BROKERAGE FIRM IN BALTIMORE SAYS CROWN ACHIEVES SOME COST ADVANTAGES BY LOCATING STORES IN STRIP SHOPPING CENTERS RATHER THAN MALLS DART ALSO OWNS A REAL ESTATE COMPANY AND A FINANCIAL BUSINESS THAT PURCHASES BANKERS' ACCEPTANCES LAST FALL THE COMPANY OPENED A HUGE DISCOUNT WINE BEER AND BEVERAGE STORE CALLED TOTAL BEVERAGE IN CHANTILLY VA MR HAFT SAYS THE STORE HAS POTENTIAL BUT IT'S AN EXPERIMENT THE COMPANY HASN'T DETERMINED WHETHER IT WILL EXPAND THE CONCEPT DESPITE THE LACKLUSTER EARNINGS MR HAFT PLANS TO INCREASE CAPITAL SPENDING TO 50 MILLION THIS YEAR FROM 44 MILLION TO BUILD AND REMODEL STORES AND INCREASE POINTOFSALE COMPUTERIZATION AND INVENTORY TRACKING BOTH TRAK AND CROWN ARE MOVING TOWARD REPLACING STORES WITH SUPERSTORES WHICH CARRY MORE MERCHANDISE AND PUT A GREATER PREMIUM ON CUSTOMER SERVICE THE SUPER TRAK STORES HAVE ABOUT 8000 SQUARE FEET CARRY ABOUT 15000 ITEMS AND OFFER COMPUTERIZED TROUBLESHOOTING AIDS SMALLER VERSIONS ARE ABOUT 5500 SQUARE FEET WITH ABOUT 10000 ITEMS AND NEWER SUPER CROWN STORES ARE UP TO 13000 SQUARE FEET WITH ABOUT 30000 TITLES COMPARED WITH THE 3500SQUAREFOOT OLDER VERSION WITH ABOUT 10000 TITLES INVESTORS FOCUSING ON UNDERLYING VALUES MIGHT NOTE THAT THE COMPANIES ARE DEBTFREE AND HAVE A GOOD DEAL OF CASH AND SHORTTERM SECURITIES ABOUT 270 MILLION OR ABOUT 106 A SHARE NET OF MINORITY INTERESTS AND A BOOK VALUE OF ABOUT 160 A SHARE DART SHARES HAVE RECENTLY TRADED FROM 75 TO 80 A SHARE BUT REALIZING THOSE VALUES DEPENDS ON WHETHER THE HAFT FAMILY DECIDES TO USE ITS RESOURCES TO MAKE A MAJOR ACQUISITION BUY BACK STOCK OR MAKE OTHER SIGNIFICANT MOVES SAYS MONEY MANAGER NEAL GOLDMAN 9304230029 930401 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY LOURDES LEE VALERIANO BASEBALL DUSTS OFF A SELDOMUSED PLAY HOLDING THE LINE ON PRICES CHASTENED BY FALLING ATTENDANCE LAST SEASON MAJORLEAGUE CLUBS HAVE CURBED THE RISE IN TICKET PRICES SAYS TEAM MARKETING REPORT THE AVERAGE 1993 TICKET PRICE ROSE JUST 27 COMPARED WITH 77 LAST YEAR ATTENDANCE IN 1992 SLIPPED 18 TO 558 MILLION ONLY THE SECOND DROP IN A DECADE THAT IS A COMPELLING SIGN THAT TEAMS NEED TO REIN IN PRICES SAYS THE CHICAGO NEWSLETTER'S NOAH LIBERMAN BUT NOT ALL FANS BENEFIT SEVERAL CLUBS ARE LIMITING DISCOUNT OFFERS REALIZING THAT IT WAS GIVING A PERK TO FANS WHO LEAST NEEDED IT THE MINNESOTA TWINS SCRAPPED THE 5 DISCOUNT ON SEASON TICKETS FOR ITS BEST SEATS THE BALTIMORE ORIOLES CUT THE FREE TICKETS AVAILABLE TO SPONSORS FOR COUPONRELATED PROMOTIONS FANS ALSO WILL SEE A SLOWING IN THE CONCESSION FRONT THE AVERAGE RISE IN CONCESSION PRICES IS 73 THIS SEASON DOWN FROM 13 TEAM MARKETING REPORT'S FAN COST INDEX THE TOTAL COST OF A GAME FOR A FAMILY OF FOUR ROSE 47 THIS YEAR TO 9081 COMPARED WITH 104 LAST YEAR COUNTRY PICKS UP THE BEAT AS THE MUSIC INDUSTRY'S FASTEST GROWING GENRE HELPED BY ARTISTS WITH CROSSOVER APPEAL LIKE GARTH BROOKS COUNTRY MUSIC IN TWO YEARS HAS NEARLY DOUBLED ITS SHARE OF THE 9 BILLION US MARKET TO 165 SAYS A RECORDING INDUSTRY ASSOCIATION OF AMERICA SURVEY ROCK DROPPED THREE POINTS IN 1992 TO A 332 SHARE ALTHOUGH IT REMAINS THE BIGGESTSELLING GENRE CHILDREN'S AND CLASSICAL MUSIC ALSO DRUMMED UP GAINS TO SHARES OF 05 AND 44 RESPECTIVELY RECORD LABELS ARE TRYING TO GENERATE SALES BY HEAVILY PROMOTING COUNTRY CREATING CHILDREN'S LABELS AND SELLING ALBUMS ON HOME SHOPPING NETWORK ANALYSTS SAY MEANWHILE THE SURVEY SHOWS THAT RECORD STORES' SHARE OF SALES FELL FOR THE SECOND STRAIGHT YEAR WHILE MAIL SALES ROSE AS DID PURCHASES AT DEPARTMENT AND DISCOUNT STORES MAILORDER SALES ARE PUMPED UP BY LATENIGHT TV OFFERS AND MAGAZINE ADS FROM INDEPENDENT LABELS AUDITORS' OPINIONS BAFFLE MANY FINANCIALSTATEMENT USERS A STUDY SHOWS ABOUT 11 OF 2000 BUSINESS EXECUTIVES ANALYSTS AND STUDENTS QUERIED BY ACCOUNTANT GARY SIEGEL A DEPAUL UNIVERSITY EDUCATOR SAY THEY DON'T UNDERSTAND THE OPINION IN CORPORATE ANNUAL REPORTS WHILE 29 SAY THEY VAGUELY COMPREHEND IT THREE YEARS AGO THE OPINION WAS EXPANDED TO STRESS THE AUDITS' LIMITATION IN CATCHING FRAUD AND TO SAY THEY DON'T GIVE ABSOLUTE BUT ONLY REASONABLE ASSURANCE ABOUT A COMPANY'S HEALTH THE OPINION ALSO NO LONGER INCLUDES A SUBJECT TO PARAGRAPH WHICH USED TO SAY THE COMPANY WAS ALL RIGHT SUBJECT TO CERTAIN CORRECTIVE STEPS OR LAWSUITS' OUTCOME BUT THE STUDY FOUND THAT THE NEW OPINION FAILED TO CLOSE THE GAP BETWEEN WHAT THE PUBLIC THINKS AN AUDIT IS AND WHAT AN AUDIT ACTUALLY IS SAYS MR SIEGEL MEANWHILE CRITICS SAY THAT WITHOUT THE SUBJECT TO RED FLAG AUDITORS CAN DUCK THE JOB OF CATCHING FRAUD SECURITIES LAWYER PATRICK G FINEGAN JR CALLS AUDITS HOLLOW PROMISES THE CENTER FOR THE NEW WEST PLANS A TOOL KIT FOR RURAL COMMUNITIES SEEKING TO LURE LONE EAGLES PROFESSIONALS SUCH AS CONSULTANTS WHO USUALLY WORK AT HOME AND KEEP TOUCH WITH CLIENTS THROUGH PHONE FAX AND COMPUTER THE DENVER THINK TANK HAS A GRANT FROM EDISON ELECTRIC INSTITUTE A TRADE GROUP WHOSE MEMBERS SERVE RURAL COMMUNITIES HEART STRINGS A BROADWAYSTYLE MUSICAL ONCE GEARED FOR AIDS FUND RAISING IS GOING TO SCHOOL A SCALEDDOWN VERSION WILL BECOME THE CENTERPIECE OF AN EDUCATION PROGRAM BEING DEVELOPED BY THE NATIONAL COMMUNITY OF AIDS PARTNERSHIP AND AIMED AT HIGH SCHOOL AND COLLEGE STUDENTS THE CURTAIN RISES IN THE FALL OF 1994 VIRTUE GETS NO REWARD SAYS A WHARTON SCHOOL STUDY CONSUMERS AREN'T WILLING TO PAY MORE FOR AN ETHICAL COMPANY'S PRODUCTS BUT EXPECT TO PAY LESS FOR THOSE OF AN UNETHICAL FIRM IT MAY BE THAT COMPANIES NEED TO BE CONSIDERED ETHICAL TO EVEN PLAY IN THE MARKETPLACE SAYS WILLIAM T ROSS JR ONE OF THE STUDY'S AUTHORS SMALL FOOD MAKERS CHEW OVER BUSINESS PLANS IN LIGHT OF NEWLABELING COSTS GOURMET FOOD COMPANIES ARE TALLYING THE COSTS OF THE NEW FEDERAL LAW REQUIRING NUTRITIONAL DATA IN PRODUCT LABELS AND THE NUMBERS HAVE SOME RETHINKING THEIR PRICING AND MARKETING RECIPES ROWENA FULLINWINDER OF ROWENA'S INC NORFOLK VA SAYS SHE HAS NO CHOICE BUT TO RAISE PRICES THE COST OF LABORATORY TESTING HER COMPANY'S 30 CAKES JAMS AND SAUCES FOR NUTRITIONAL COMPONENTS AND CREATING NEW LABELS MAY EXCEED 150000 OR 15 OF SALES SHE SAYS OTHERS FRET THAT FITTING IN ALL THE NUTRITIONAL DATA WILL RUIN THE DESIGN OF THE LABELS OFTEN THEIR MAIN ADVERTISING VEHICLE WE DON'T HAVE ANY ROOM LEFT FOR OUR SALES PITCH SAYS DAN JARDINE OF JARDINE'S TEXAS FOOD IN AUSTIN HE RECKONS THE LAW WILL COST JARDINE'S 100000 CLEARBROOK FARMS FAIRFAX OHIO SAYS IT WILL HAVE TO REDO ITS FOOD BOOTH AND BROCHURES TO MATCH THE NEW LABELS THE DEADLINE IS MAY 1994 SOME COMPANIES HOPE FOR AN AMENDMENT TO THE LAW THAT WILL EXEMPT PRODUCTS WITH UNDER 750000 UNITS IN ANNUAL SALES BRIEFS LEST YOU MISS THE POINT TOUCAN CHOCOLATES WHICH GIVES TO A GROUP WORKING TO PRESERVE THE RAIN FORESTS USES SEAWEED TO TIE A BOOKLET OF FOREST FACTS TO ITS CANDY BOXES ABOUT 59000 MILES OF DENTAL FLOSS WAS PURCHASED IN THE US LAST YEAR SAYS MIDA DENTAL PLANS A DENTAL CARE SERVICES FIRM SEE RELATED LETTER LETTERS TO THE EDITOR AUDITORS SNIFF OUT MOST COOKED BOOKS WSJ APRIL 23 1993 9304010035 9304230028 930423 IBM IS PLANNING STATEMENT TODAY ON ADSTAR UNIT BY LAURENCE HOOPER STAFF REPORTER OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP SAID IT WILL MAKE AN ANNOUNCEMENT TODAY REGARDING THE FUTURE OF ADSTAR THE BIG DISKDRIVE BUSINESS IT IS GRADUALLY MAKING MORE INDEPENDENT DETAILS COULDN'T BE LEARNED BUT A SPOKESMAN SAID IBM VICE CHAIRMAN JACK KUEHLER WOULD SPEAK AT A NEWS CONFERENCE IN SAN JOSE CALIF WHERE ADSTAR IS BASED MR KUEHLER'S PRESENCE AT AN IBM EVENT IS USUALLY A SIGNAL THAT THE COMPANY IS MAKING AN IMPORTANT ANNOUNCEMENT AND HE OFTEN NEGOTIATES IBM'S KEY ALLIANCES BUT IN THIS CASE INDUSTRY EXECUTIVES SAID IT'S UNLIKELY THAT ANY DRASTIC ACTION SUCH AS A MAJOR CHANGE IN ADSTAR'S OWNERSHIP WILL BE UNVEILED IBM'S NEW CHAIRMAN LOUIS GERSTNER PROBABLY DOESN'T KNOW ENOUGH ABOUT THE COMPANY YET TO SIGN OFF ON SUCH A STRATEGIC MOVE THEY SAID IBM HAS BEEN STUDYING WAYS TO SPLIT ADSTAR ONE OF ITS DOZEN BABY BLUES FROM THE REST OF THE COMPANY EARLIER THIS YEAR IBM HIRED MORGAN STANLEY & CO AND THE BOSTON CONSULTING GROUP TO SEEK WAYS TO SPEED UP THE PROCESS WHICH COULD INVOLVE OUTSIDE INVESTORS OR SPECIAL NEW SECURITIES ACCORDING TO A TIMETABLE SUPPLIED BY FORMER CHAIRMAN JOHN AKERS IBM'S TWO ADVISERS SHOULD HAVE FINISHED THEIR PRELIMINARY WORK ON THAT PROJECT BY NOW INDUSTRY EXECUTIVES SAID ONE STEP THAT SHOULDN'T FAZE MR GERSTNER EVEN IF HE HASN'T DONE ALL HIS IBM HOMEWORK WOULD BE THE CREATION OF ADSTAR AS A WHOLLY OWNED SUBSIDIARY THAT WOULD BE LITTLE MORE THAN A FORMALITY SINCE THE OPERATION HAS KEPT SEPARATE BOOKS SINCE LAST YEAR BUT THE IBM SPOKESMAN SAID SOME OBSERVERS MIGHT BE SURPRISED BY TODAY'S ANNOUNCEMENT WHICH HE SAID CONCERNED ADSTAR'S OPERATIONS AS AN IBM BUSINESS UNIT AND ITS FUTURE DIRECTION MR KUEHLER COULD HAVE MANY REASONS FOR ATTENDING THE EVENT HE HAS STRONG LINKS TO IBM'S DATASTORAGE OPERATIONS HAVING JOINED IBM IN SAN JOSE IN 1958 AND RUN ITS LABORATORY THERE AN ENGINEER BY TRAINING HE'S STILL AN EXPERT ON MANY OF THE TECHNOLOGIES USED AT ADSTAR NOW THE COMPANY'S TOP TECHNOLOGIST MR KUEHLER HAS BEEN EXPECTED TO RETIRE FROM IBM THIS YEAR ALREADY HAVING STAYED BEYOND IBM'S CUSTOMARY RETIREMENT AGE OF 60 BUT HE HASN'T YET DISCLOSED HIS PLANS 9304230027 930423 CORRECTIONS & AMPLIFICATIONS CITICORP'S NET INCOME FOR THE FIRST QUARTER INCLUDED 300 MILLION TAX BENEFIT DUE TO AN ACCOUNTING CHANGE THE FIGURE WAS MISSTATED IN A CHART ACCOMPANYING AN ARTICLE WEDNESDAY ABOUT THE BANK'S EARNINGS A THOMAS YOUNG IS PRESIDENT AND CHIEF OPERATING OFFICER OF MARTIN MARIETTA CORP IN A WHO'S NEWS ARTICLE YESTERDAY HE WAS INCORRECTLY IDENTIFIED AS CHIEF FINANCIAL OFFICER TRITON ENERGY CORP SHORT INTEREST IN THE MONTH TO MIDAPRIL FELL TO 1361032 SHARES A DECLINE OF 114466 SHARES OR 78 FROM MIDMARCH IN YESTERDAY'S SHORT INTEREST TABLE DUE TO AN ERROR AT THE NEW YORK STOCK EXCHANGE THE MIDMARCH TOTAL WAS LISTED INCORRECTLY AS 7475498 THE CORRECT MIDMARCH TOTAL WAS 1475498 SHARES 9304230026 930423 REVIEW & OUTLOOK EDITORIAL ASIDES ANOTHER PROBLEM SOLVED INTEREST RATES ON BANK CREDIT CARDS HAVE NOW FALLEN TO THEIR LOWEST LEVELS SINCE SURVEYS BEGAN TO MEASURE THEM IN THE 1970S AND VARIOUS ANALYSTS REPORT AN ALLOUT PRICE WAR IN OTHER WORDS COMPETITION HAS WORKED IN JUST THE WAY THAT ALL THOSE CONSUMER AND CONGRESSIONAL ACTIVISTS SAID IT WOULDN'T WHEN THEY PUSHED UNSUCCESSFULLY FOR CONTROLS ON THE PLASTIC A FEW YEARS AGO BY NOW OF COURSE THEY'VE MOVED ON TO OTHER BOTHERS 9304230025 930423 NET AT AMERICAN EXPRESS FELL 11 IN 1ST QUARTER RESULTS EXCEED PREDICTIONS BY ANALYSTS ON STRENGTH AT FLAGSHIP CARD UNIT BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN EXPRESS CO POSTED STRONGER THAN EXPECTED FIRSTQUARTER PROFIT AIDED BY STRONG GAINS IN ITS CHARGE CARD BUSINESS AND IMPROVED RESULTS AT ITS SHEARSON LEHMAN BROTHERS UNIT THE TRAVEL AND FINANCIAL SERVICES GIANT POSTED AN 11 DROP IN NET INCOME TO 243 MILLION OR 48 CENTS A SHARE FROM YEAREARLIER RESULTS OF 274 MILLION OR 56 CENTS A SHARE REFLECTING A SERIES OF NONRECURRING CHARGES BUT OPERATING EARNINGS BEFORE ASSET SALES AND ACCOUNTING MOVES ROSE 51 TO 375 MILLION OR 75 CENTS A SHARE THE CONSENSUS ESTIMATE TABULATED BY FIRST CALL CORP WAS FOR FIRSTQUARTER OPERATING RESULTS OF 52 CENTS A SHARE FINALLY WORDS ARE TURNING INTO ACTIONS AT THIS COMPANY SAID THOMAS FACCIOLA AN ANALYST AT SG WARBURG & CO THE EARNINGS ANNOUNCEMENT WAS MADE AFTER THE CLOSE OF TRADING YESTERDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AMERICAN EXPRESS SHARES FELL 375 CENTS TO 28125 TRAVEL RELATED SERVICES THE COMPANY'S FLAGSHIP UNIT REPORTED STRONG EARNINGS OF 211 MILLION UP 68 FROM LAST YEAR'S PROFIT EVEN AFTER DEDUCTING 25 MILLION FROM THE SALE OF AN INSURANCE BUSINESS THE RESULTS WERE BETTER THAN THE 150 MILLION TO 175 MILLION WALL STREET WAS EXPECTING THE RETURNS WERE FUELED BY A SHARP DECLINE IN THE PROVISION FOR BAD DEBTS IN PARTICULAR A 47 DROP IN CHARGEOFFS FOR ITS OPTIMA CREDIT CARD TO 118 MILLION FUNDING COSTS ALSO DROPPED HELPING THE BOTTOM LINE THIS IS THE COMPANY'S FIRST QUARTER UNDER THE LEADERSHIP OF HARVEY GOLUB THE NEWLY INSTALLED CHIEF EXECUTIVE OFFICER THOUGH HE IMPLEMENTED MANY OF THE CHANGES WHILE PRESIDENT OF TRS HIS EFFORTS AT TURNING AROUND OPTIMA AND IMPROVING RESULTS IN TRS HIS MAIN CHALLENGE APPEAR TO BE BEARING FRUIT THE NEW MANAGEMENT SEEMS TO BE COMMITTED TO GETTING RESULTS THEY PROMISED SAID MR FACCIOLA THE REAL STORY IS REVENUES ARE NOT FALLING OFF A LEDGE AND EXPENSES ARE COMING DOWN AS PART OF TRS'S PLAN TO SLASH EXPENSES BY 1 BILLION THE DIVISION'S MARKETING AND PROMOTION EXPENSES FELL NEARLY 10 WHILE OTHER OPERATING EXPENSES FELL 3 THE GOOD NEWS IS THAT IN THE US SPENDING PER CARD WAS UP 11 AND TOTAL VOLUME OF CHARGES WERE UP SLIGHTLY THAT WAS OFFSET BY A 5 DROP IN CARDS OUTSTANDING ABOUT THE SAME RATE AS THE FOURTH QUARTER WHICH CONTINUES TO BE A CONCERN ON WALL STREET THE SHEARSON LEHMAN SECURITIES UNIT REPORTED IMPROVED OPERATING PROFIT OF 114 MILLION A 60 JUMP FROM A YEAR EARLIER SHEARSON RECORDED A 451 MILLION LOSS AS A RESULT OF THE SALE OF BOSTON CO AND LOSSES RELATED TO THE IMMINENT SALE OF RETAIL OPERATIONS TO PRIMERICA CORP INCLUDED IN SHEARSON'S FIGURES IS 55 MILLION FOR THE REMAINING LEHMAN UNIT THE FIRST TIME ITS EARNINGS HAVE BEEN BROKEN OUT THE LEHMAN RESULTS INCLUDE 30 MILLION IN OVERHEAD COSTS FROM UNITS BEING SOLD SUGGESTING THAT EXPENSES WILL BE LOWER IN THE FUTURE WITHIN LEHMAN REVENUE INCREASED 18 ON STRENGTH IN THE COMPANY'S FIXEDINCOME BUSINESS AND HIGHER FOREIGN EXCHANGE AND DERIVATIVES ACTIVITIES EXPENSES HOWEVER ROSE BY 12 AS A RESULT OF HIGHER EMPLOYEE COMPENSATION MANY WALL STREET FIRMS HAVE REPORTED RECORD PROFITS FOR THE FIRST QUARTER SOME ANALYSTS HAVE SAID IT WOULD HAVE BEEN TOUGH NOT TO MAKE MONEY IN THE QUARTER STILL SHEARSON POSTED IMPRESSIVE RESULTS GIVEN ITS WEAK PERFORMANCE LAST YEAR WHEN IT HAD A LOSS OF 116 MILLION IDS FINANCIAL SERVICES THE COMPANY'S MINNEAPOLISBASED MONEY MANAGEMENT FIRM CONTINUED ITS IMPRESSIVE RESULTS REPORTING EARNINGS OF 74 MILLION UP 21 FROM A YEAR EARLIER SALES OF ANNUITIES AND OTHER FINANCIAL PRODUCTS INCREASED WHILE MANAGEMENT FEES AND OTHER EARNINGS WERE HELPED BY HIGHER ASSET LEVELS AMERICAN EXPRESS BANK HAD LACKLUSTER RESULTS POSTING A 15 DECLINE IN EARNINGS TO 15 MILLION IT WAS HURT BY RISING PROBLEM LOANS AND HIGHER TAXES THE COMPANY'S PROBLEM LOANS ROSE BY 78 MILLION AT A TIME WHEN MOST BANKS ARE POSTING DECLINES IN BAD DEBTS THE COMPANY'S NET RESULTS REFLECT A 433 MILLION AFTERTAX GAIN ON THE SALE OF 32 OF FIRST DATA CORP A CREDITCARD SERVICING COMPANY AS WELL AS A 165 MILLION GAIN FROM THE BOSTON CO SALE THAT WAS OFFSET BY 730 MILLION IN CHARGES RELATED TO THE SHEARSON SALE IN THE QUARTER AMERICAN EXPRESS RECORDED 54 OF FIRST DATA'S EARNINGS OR ABOUT 20 MILLION WHEN YOU PULL BACK FROM ALL THE DETAIL THEY'RE SHOWING IMPROVEMENT IN THE WAY THEY'RE RUNNING THE BUSINESS SAID E WILSON DAVIS AN ANALYST AT GERARD KLAUER MATTISON & CO 9304230024 930423 BUSINESS BRIEF LSI LOGIC CORP COMPANY SAYS NET JUMPED TO 11 MILLION IN QUARTER LSI LOGIC CORP REPORTED RECORD NET INCOME FOR THE FIRST QUARTER THE SEMICONDUCTOR CONCERN SAID IT POSTED NET INCOME OF 11 MILLION OR 22 CENTS A SHARE COMPARED WITH YEAREARLIER NET INCOME OF 309000 OR ONE CENT A SHARE REVENUE ROSE 12 TO 169 MILLION FROM THE YEARAGO 151 MILLION LSI LOGIC ATTRIBUTED THE RESULTS TO STRONG ORDERS FOR ITS CUSTOMINTEGRATED CIRCUITS DURING THE QUARTER ITS CUSTOM CHIPS WERE DESIGNED INTO SEVERAL NEW CONSUMER PRODUCTS INCLUDING A LASER PRINTER MADE BY OKI CORP AND APPLE COMPUTER INC'S HANDHELD COMPUTER NEWTON THE COMPANY ALSO BENFITED FROM HIGHER PROFIT MARGINS AND LOWER OPERATING EXPENSES IN THE QUARTER OPERATING EXPENSES FELL TO 482 MILLION OR 285 OF REVENUE COMPARED WITH 529 MILLION OR 351 OF REVENUE A YEAR AGO 9304230023 930423 ITT DISCLOSES IT COULD GET STAKE IN A BALLY'S CASINO BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL ITT CORP DISCLOSED THAT A SUBSIDIARY HOLDS A STAKE IN THE FIRST MORTGAGE BONDS OF BALLY'S GRAND NEVADA A CASINO CONCERN CURRENTLY IN BANKRUPTCY COURT PROCEEDINGS THAT WOULD GIVE ITT AN 115 EQUITY STAKE IN THE REORGANIZED CONCERN ITT THROUGH ITS ITT SHERATON HOTEL UNIT HAS LONG BEEN INTERESTED IN GETTING INTO THE CASINO GAMBLING BUSINESS IF IT ACQUIRES THE BALLY'S CASINO ON THE LAS VEGAS STRIP OR FORMS SOME SORT OF PARTNERSHIP TO OWN OR OPERATE THE PROPERTY THE COMPANY WOULD HAVE A PROMISING FOOTHOLD IN ONE OF THE WORLD'S MOST SUCCESSFUL GAMBLING MARKETS AN ITT SPOKESMAN CONFIRMED THAT IT HAD ACQUIRED 433 MILLION PRINCIPAL AMOUNT OF BALLY'S GRAND FIRST MORTGAGE NOTES IN SEPARATE TRANSACTIONS LAST YEAR BUT DECLINED TO ELABORATE ON THE COMPANY'S STRATEGY UNTIL THE PROPER DOCUMENTS ARE FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BALLY'S GRAND INC A SUBSIDIARY OF BALLY MANUFACTURING CORP OF CHICAGO FILED FOR CHAPTER 11 BANKRUPTY PROTECTION IN NOVEMBER 1991 AFTER DEFAULTING ON ITS BONDS AND BEING THREATENED WITH INVOLUNTARY BANKRUPTCY PROCEEDINGS BY A GROUP OF UNSECURED BONDHOLDERS BALLY MANUFACTURING AGREED TO TURN OVER THE KEYS TO TWO OF ITS NEVADA CASINOS TO BONDHOLDERS AND SUBSEQUENTLY SOLD ITS RENO NEV CASINO TO HILTON HOTELS CORP THE BALLY'S GRAND REORGANIZATION WHICH HAS RECEIVED MOST OF THE REQUIRED COURT AND REGULATORY APPROVALS IS EXPECTED TO BE COMPLETED BY LATE MAY BALLY MANUFACTURING HOLDS A MANAGEMENT CONTRACT TO RUN THE LAS VEGAS RESORT AND IS PAID 3 MILLION A YEAR FOR ITS SERVICES ARTHUR GOLDBERG CHAIRMAN AND CHIEF EXECUTIVE OF BALLY MANUFACTURING SAID ITT WAS WELCOME AS A STAKEHOLDER BUT ADDED THAT BALLY ISN'T INTERESTED IN A JOINT VENTURE ON THE BIG CASINO IT WOULD COST AN INTERESTED PARTY ABOUT 30 MILLION TO BUY OUT BALLY MANUFACTURING'S 10YEAR MANAGEMENT CONTRACT ITT HAD APPROACHED BALLY LAST YEAR EXPRESSING INTEREST IN ITS NEVADA CASINO AS WELL AS ITS TWO ATLANTIC CITY NJ CASINOS BUT HAD NOT COME TO TERMS ON ANY OF THE SITES THE LAS VEGAS CASINO IS LOCATED ON 66 PRIME ACRES AND INCLUDES ABOUT 32 MILLION SQUARE FEET OF SPACE AND 2800 ROOMS CASINO OPERATORS CONSIDER IT ONE OF THE MORE VALUABLE STRIP SITES BUT THE PROPERTY SUFFERS FROM POOR DESIGN AND OTHER PROBLEMS THAT WOULD REQUIRE SUBSTANTIAL CAPITAL INVESTMENT TO CORRECT ITT SHERATON IS IN THE PROCESS OF OBTAINING LICENSING APPROVAL FROM GAMBLING REGULATORS IN NEW JERSEY AND NEVADA AND ALSO HAS BEGUN SEEKING LICENSING APPROVAL IN LOUISIANA FOR A POSSIBLE RIVERBOAT VENTURE THERE 9304230022 930423 VIETNAM CRITIC CLAIMS ORIGINAL COPY OF MIA DOCUMENT MAY STILL BE IN RUSSIA BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON STEPHEN MORRIS A LONGTIME CRITIC OF VIETNAM WHO TURNED UP A DOCUMENT SUGGESTING HUNDREDS OF US PRISONERS WERE NEVER FREED BY HANOI KEEPS STIRRING THE CONTROVERSY AMID GROWING DOUBTS ABOUT THE ACCURACY OF THE DOCUMENT A RUSSIAN TRANSLATION OF A 1972 REPORT TO VIETNAM'S POLITBURO MR MORRIS CLAIMED IN AN INTERVIEW THIS WEEK THAT HE HAS BEEN TOLD THE ORIGINAL VIETNAMESE DOCUMENT IS IN RUSSIAN ARCHIVES THE VIETNAMESE HOWEVER INSIST THE RUSSIAN DOCUMENT IS A FRAUD MR MORRIS AN ACADEMIC RESEARCHER REFUSED TO REVEAL WHO GAVE HIM THE INFORMATION BUT HE SAID THE VIETNAMESE DOCUMENT IS KEPT IN A DIFFERENT ARCHIVE FROM THE ONE IN WHICH HE FOUND THE RUSSIAN TRANSLATION IN JANUARY DURING A TRIP TO MOSCOW THE DISPUTE OVER THE RUSSIAN DOCUMENT CAUGHT THE CLINTON ADMINISTRATION OFF GUARD AND SHOWS THE EMOTIONAL BITE OF THE ISSUE NEARLY TWO DECADES AFTER THE US WITHDRAWAL FROM VIETNAM BEFORE THE DOCUMENT SURFACED PUBLICLY EARLIER THIS MONTH THE CLINTON ADMINISTRATION WAS INCHING TOWARD IMPROVING TIES WITH HANOI BUT NOW EVEN THOUGH US OFFICIALS PRIVATELY INDICATE THEY ARE SKEPTICAL THERE IS CAUTION FOLLOWING A MEETING AT THE WHITE HOUSE GEN JOHN VESSEY PRESIDENT CLINTON'S ENVOY TO VIETNAM SAID WE KNOW THAT SOME OF THE FACTS THAT ARE ALLEGED IN THE RUSSIAN DOCUMENT ARE WRONG A LOT OF THE FACTS THE RETIRED GENERAL SAID THAT DURING A RECENT TRIP TO HANOI HE WAS GIVEN AN AGED AND TATTERED HANDWRITTEN LEDGER THAT CHRONOLOGICALLY LISTED 381 US AVIATORS WHO WERE PRISONERS OF WAR BEING HELD IN NORTH VIETNAM FROM AUGUST 1964 TO FEBRUARY 1972 GEN VESSEY INDICATED THAT THE LEDGER WHICH HE BELIEVES IS AUTHENTIC ALONG WITH OTHER INFORMATION KNOWN ABOUT AMERICANS HELD PRISONER THROUGHOUT INDOCHINA MAKE IT EXTREMELY UNLIKELY THAT VIETNAM WAS HOLDING 1205 US PRISONERS OF WAR IN SEPTEMBER 1972 AS THE RUSSIAN TRANSLATION CLAIMS WITH MANY QUESTIONS UNANSWERED HOWEVER A SENIOR US OFFICIAL SAID I WOULDN'T LEAP FROM VESSEY'S ASSESSMENT OF HIS MISSION TO ANY KIND OF POLICY CONCLUSIONS SUCH A GOSLOW APPROACH TOWARD NORMALIZATION SUITS MR MORRIS LONG BEFORE HE FOUND THE RUSSIAN TRANSLATION HE HAD REGULARLY CRITICIZED VIETNAM'S COMMUNIST REGIME INCLUDING IN ARTICLES PUBLISHED IN THE WALL STREET JOURNAL'S EDITORIAL PAGES THE DOCUMENT HE DISCOVERED PERFECTLY FITS HIS HARSH VIEW TOWARD HANOI IN A 1985 ARTICLE IN THE ATLANTIC FOR INSTANCE MR MORRIS REFERRING TO HANOI'S 1979 INVASION OF CAMBODIA CHARGED THAT VIETNAM WAS RESPONSIBLE FOR A WIDESPREAD FAMINE THAT KILLED THOUSANDS OF CAMBODIANS HE EXPLAINED THAT THE INVASION PREVENTED THE PLANTING OF THE 1979 RICE CROP BUT MANY EXPERTS BELIEVE THE INVASION ALSO PREVENTED A CONTINUATION OF THE SLAUGHTER OF PERHAPS A MILLION CAMBODIANS BY THEIR OWN GOVERNMENT AND IN A 1990 ARTICLE IN THE WASHINGTON POST MR MORRIS URGED STRICTER STANDARDS BE MET BEFORE THE US NORMALIZES RELATIONS WITH HANOI THE REAGAN AND BUSH ADMINISTRATIONS HAD DECIDED NORMALIZATION WOULD BE DETERMINED BY VIETNAM'S WITHDRAWAL FROM CAMBODIA AND ITS COOPERATION RESOLVING CASES OF US SOLDIERS MISSING IN ACTION FROM THE VIETNAM CONFLICT BUT MR MORRIS WROTE ASSUMING VIETNAM'S COOPERATION ON CAMBODIA AND THE MIA QUESTION THE ISSUE OF HUMAN RIGHTS WILL STILL REMAIN THE ACADEMIC RESEARCHER'S PASSIONS OVER VIETNAM WERE EVIDENT 15 YEARS AGO WHEN HE WAS A GRADUATE STUDENT AT COLUMBIA UNIVERSITY MR MORRIS JOINED A SMALL GROUP THAT DEFENDED HENRY KISSINGER DURING A WIDESPREAD CAMPUS PROTEST AGAINST APPOINTING THE FORMER SECRETARY OF STATE TO THE FACULTY LARGELY BECAUSE OF HIS ROLE IN THE WAR HE INSISTS THAT HE DOESN'T OPPOSE NORMALIZING RELATIONS WITH VIETNAM IN FACT I'M IN FAVOR OF DOING IT STEP BY STEP HE ALSO CLAIMS THAT HE HAS NO PREVIOUS AX TO GRIND SOON AFTER HE FOUND THE RUSSIAN DOCUMENT MR MORRIS SAID HE SHOWED IT TO SEVERAL EXPERTS INCLUDING RICHARD PIPES AT HARVARD UNIVERSITY AND ZBIGNIEW BRZEZINSKI THE NATIONAL SECURITY ADVISER IN THE CARTER ADMINISTRATION BOTH MEN TOLD HIM THEY BELIEVED IT WAS AUTHENTIC IN FEBRUARY HE CONTACTED SEVERAL CLINTON ADMINISTRATION OFFICIALS BUT HE DIDN'T GIVE THEM A COPY OF THE RUSSIAN DOCUMENT WHICH HAD BEEN TRANSLATED INTO ENGLISH BECAUSE HE FEARED IT WOULD BE LEAKED TO THE MEDIA THE ADMINISTRATION LATER OBTAINED A COPY FROM MOSCOW MR MORRIS SAID HE WANTED THE US TO PURSUE THE MATTER PRIVATELY AND ASKED IF HE COULD ACT AS A GOBETWEEN EARLIER THIS MONTH STORIES ABOUT THE DOCUMENT APPEARED IN THE RUSSIAN NEWSPAPER IZVESTIA AND THE NEW YORK TIMES NOW THE DOCUMENT IS LIKELY TO COMPLICATE USVIETNAM RELATIONS FOR THE NEAR FUTURE IT'S LIKE THE KENNEDY ASSASSINATION NO MATTER WHAT YOU COME UP WITH SOMEONE WILL SAY IT'S FURTHER PROOF OF WHAT THEY WANT TO BELIEVE SAID DOUGLAS PIKE DIRECTOR OF THE INDOCHINA STUDIES PROGRAM AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY 9304230021 930423 CANTOR UNIT FACES POSSIBLE SEC ACTION ON CERTAIN BIDS IN TREASURY AUCTIONS BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION APPEARS TO BE MOVING TOWARD SUING CANTOR FITZGERALD & CO IN CONNECTION WITH NONCOMPETITIVE BIDS AT TREASURY AUCTIONS THE COMPANY A UNIT OF THE GIANT GOVERNMENT SECURITIES BROKER CANTOR FITZGERALD SECURITIES CORP OF NEW YORK HAS BEEN INVITED BY THE SEC STAFF TO EXPLAIN WHY IT SHOULDN'T BE CHARGED WITH BREAKING THE SECURITIES LAWS ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER IN THESE SOCALLED WELLS SUBMISSIONS POTENTIAL DEFENDANTS GET A LAST CHANCE TO CONVINCE SEC ENFORCEMENT PERSONNEL THAT THEY SHOULDN'T BE CHARGED WITH SECURITIES LAW VIOLATIONS CANTOR HAS ACKNOWLEDGED BEING INVESTIGATED BY THE SEC BUT HAS VIGOROUSLY DENIED ANY WRONGDOING A LAWYER FOR CANTOR DECLINED TO COMMENT ON THE MATTER AS DID AN SEC SPOKESMAN WILLIAM MCLUCAS THE SEC'S TOP ENFORCEMENT OFFICIAL WAS TRAVELING AND COULDN'T BE REACHED FOR COMMENT SUSPECTED ABUSES IN NONCOMPETITIVE BIDDING CAME TO LIGHT AFTER THE SALOMON INC BOND SCANDAL BROUGHT THE GOVERNMENT BOND MARKET UNDER HEIGHTENED SCRUTINY THE TREASURY ALLOWS NONCOMPETITIVE BIDDING AT ITS AUCTIONS AS A WAY FOR SMALLER INVESTORS TO PARTICIPATE NONCOMPETITIVE BIDDERS RECEIVE SECURITIES AT THE AVERAGE YIELD OF ACCEPTED COMPETITIVE BIDS BUT THEY ARE NOT ALLOWED TO AGREE IN ADVANCE TO RESELL THE SECURITIES FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN TOLD CONGRESS LAST YEAR THAT A TYPICAL ABUSE OF THE NONCOMPETITIVE BIDDING PROGRAM IS TO PURCHASE SECURITIES NONCOMPETITIVELY AND THEN TO SELL THEM QUICKLY SEVERAL ARBITRAGEDRIVEN WAYS OF ABUSING THE NONCOMPETITIVE BIDDING PROCESS WERE DISCUSSED IN A 1992 JOINT REPORT BY THE TREASURY FED AND SEC WHICH SAID SOME CASES HAD BEEN REFERRED TO THE SEC FOR INVESTIGATION IN MOST CASES THEY INVOLVE USING A PROGRAM DESIGNED FOR SMALL INVESTORS TO BENEFIT LARGER ONES THE TREASURY HAS SUGGESTED THAT IT COULD IMPOSE PENALTIES ON ANY PARTIES FOUND TO HAVE BROKEN RULES IN CONNECTION WITH NONCOMPETITIVE BIDDING CANTOR IN A REPORT TO A CONGRESSIONAL PANEL LAST YEAR ACKNOWLEDGED THE TRANSACTIONS THAT LED THE SEC TO INVESTIGATE ITS DEALINGS BUT INSISTED THAT IT COMPLIED WITH ALL APPLICABLE TREASURY RULES THE SEC IS UNDERSTOOD TO BE FOCUSING IN PART ON POSSIBLE RECORDKEEPING VIOLATIONS BY CANTOR CANTOR IN ITS REPORT SAID IT OFFERED CUSTOMERS THE OPPORTUNITY TO BUY TREASURY SECURITIES THROUGH NONCOMPETITIVE BIDDING PROCEDURES IN 1990 AND EARLY 1991 CANTOR SAID THE CUSTOMERS SOME OF WHOM WORKED FOR THE FIRM OR ITS AFFILIATES OR WERE RELATIVES OF EMPLOYEES WERE ABLE TO PURCHASE 1 MILLION IN FACE VALUE OF SECURITIES AT THE AUCTION AND WERE THEN ABLE TO SELL THOSE SECURITIES AT THE OPEN MARKET PRICE PROMPTLY AFTER THE CLOSING TIME FOR SUBMISSION OF COMPETITIVE TENDERS IN FOUR CASES CANTOR SAID IN ITS REPORT SECURITIES WERE SOLD TO A PARTNERSHIP FIRST NEVADA ASSOCIATES WHOSE GENERAL PARTNER HOWARD LUTNICK IS PRESIDENT OF CANTOR FITZGERALD SECURITIES CORP AND CHAIRMAN OF CANTOR FITZGERALD & CO CANTOR INSISTED IN ITS REPORT THAT ALL THE TRANSACTIONS IN QUESTION WERE LAWFUL AND COMPLIED WITH THE TREASURY'S PRONOUNCEMENTS IN EFFECT AT THE TIME TELERATE INC A UNIT OF DOW JONES & CO OWNER OF THIS NEWSPAPER HAS A BUSINESS RELATIONSHIP WITH CANTOR FITZGERALD SECURITIES THE SEC HAS NEVER TAKEN AN ENFORCEMENT ACTION IN CONNECTION WITH NONCOMPETITIVE BIDDING AT TREASURY AUCTIONS BUT OTHER FIRMS BESIDE CANTOR ARE IN THE SEC'S ENFORCEMENT SIGHTS ONE SUCH FIRM IS DISCOUNT CORP OF NEW YORK A PRIMARY DEALER IN US GOVERNMENT SECURITIES DISCOUNT HAS DISCLOSED IT WAS ADVISED THAT THE SEC CONTEMPLATES BRINGING AN ACTION ALLEGING RECORDKEEPING VIOLATIONS IN CONNECTION WITH DISCOUNT'S SUBMISSION OF NONCOMPETITIVE BIDS FOR A CUSTOMER OF ITS RETAIL DIVISION AT VARIOUS AUCTIONS FROM 1989 TO 1991 AND THAT SETTLEMENT TALKS ARE UNDER WAY PHEBE MILLER GENERAL COUNSEL FOR DISCOUNT SAID THAT ANY POSSIBLE VIOLATION WAS TECHNICAL AND MINOR IN NATURE AND STRESSED THAT THE FIRM NEVER CHARGED ANY FEES FOR THE TRANSACTIONS IN QUESTION 9304230020 930423 ALLIEDSIGNAL'S PROFIT ROSE 22 IN 1ST PERIOD SALES DECLINED BY 26 ALLIEDSIGNAL INC CITING GAINS IN ALL ITS PRINCIPAL BUSINESSES POSTED A 22 INCREASE IN FIRSTQUARTER EARNINGS NET INCOME TOTALED 149 MILLION OR 105 A SHARE IN LINE WITH ANALYSTS' EXPECTATIONS OF 106 A SHARE A CONSENSUS ESTIMATE COMPILED BY ZACKS INVESTMENT RESEARCH LAWRENCE A BOSSIDY CHAIRMAN SAID ALLIEDSIGNAL'S OPERATING MARGIN INCREASED TO 82 FROM 61 A YEAR AGO DESPITE A WEAK AEROSPACE MARKET AND A SEVERE RECESSION IN THE COMPANY'S EUROPEAN MARKETS HE ATTRIBUTED THE EARNINGS GAINS PRIMARILY TO A 57 INCREASE IN PRODUCTIVITY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY ALLIEDSIGNAL CLOSED AT 6475 DOWN 1625 IN THE 1992 FIRST QUARTER THE COMPANY EARNED 122 MILLION OR 87 CENTS A SHARE BEFORE ACCOUNTING FOR CHANGES RELATED TO POSTRETIREMENT BENEFITS AND INCOME TAXES INCLUDING THOSE CHANGES ALLIEDSIGNAL HAD A LOSS OF 113 BILLION OR 807 A SHARE SALES DECLINED 26 TO 29 BILLION FROM 298 BILLION ALLIEDSIGNAL IS BASED IN MORRIS TOWNSHIP NJ EARNINGS FROM THE COMPANY'S ENGINEERED MATERIALS BUSINESS ROSE TO 67 MILLION FROM 49 MILLION A YEAR EARLIER MR BOSSIDY ATTRIBUTED THE INCREASE PARTLY TO THE EXPANSION OF A NEW AUTOMOTIVE CATALYST PLANT IN EUROPE AND THE INTRODUCTION OF A NEW LINE OF ENVIRONMENTFRIENDLY PRODUCTS USED AS SOLVENTS AND INSULATING AGENTS ALLIEDSIGNAL'S AUTOMOTIVE UNIT HAD NET INCOME OF 42 MILLION UP FROM 31 MILLION LAST YEAR IT SAID NEW MARKETS IN AIRBAGS AND ANTILOCK BRAKING SYSTEMS AS WELL AS INCREASED SALES OF SEAT BELTS CONTRIBUTED TO THE EARNINGS GAIN ITS AEROSPACE BUSINESS EARNED 49 MILLION IN THE FIRST QUARTER COMPARED WITH 45 MILLION A YEAR AGO THE UNIT'S SALES HOWEVER DECLINED 11 TO 11 BILLION LARGELY DUE TO A SHRINKING DEFENSE MARKET THE COMPANY SAID HOWEVER THAT IT HAS RECEIVED NEW ORDERS AS PREVIOUSLY ANNOUNCED FOR AVIONICS MISSILE NAVIGATION SYSTEMS AND TECHNICAL SERVICES FOR INTELLIGENT HIGHWAY SYSTEMS WHICH WILL AMOUNT TO AS MUCH AS 15 BILLION IN REVENUE OVER SEVERAL YEARS 9304230019 930423 TECHNOLOGY & HEALTH OZONE PROBLEM IN ATMOSPHERE BECOMES WORSE BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL ATMOSPHERIC SCIENTISTS REPORTED THAT THE EARTH'S PROTECTIVE OZONE LAYER WHICH HAS BEEN DIMINISHING AT A SLOW RATE IN THE LAST 13 YEARS SHOWED A SUDDEN AND STEEP REDUCTION LAST YEAR IN A PAPER PUBLISHED IN THE LATEST ISSUE OF SCIENCE THE RESEARCHERS SAID THEY WEREN'T SURE OF THE REASONS AND THAT THEY ARE INVESTIGATING THE UNANTICIPATED TURN FOR THE WORSE BUT THEY SPECULATED THAT ONE REASON MIGHT BE CHANGES INDUCED IN THE STRATOSPHERE BY THE MOUNT PINATUBO ERUPTION IN THE PHILIPPINES IN JUNE 1991 THE MEASUREMENTS OF GLOBAL OZONE LEVELS WERE TAKEN BY INSTRUMENTS ON THE NIMBUS7 SATELLITE LAUNCHED IN 1978 THE SATELLITE HAS BEEN RELAYING THE MEASUREMENTS EVERY YEAR SINCE THEN BECAUSE THE LATEST MEASUREMENTS WERE SIGNIFICANTLY DIFFERENT FROM THE PAST TREND THE RESEARCHERS USED OTHER INDEPENDENT INSTRUMENTS INCLUDING GROUNDBASED SYSTEMS TO CONFIRM THE MEASUREMENTS SAID JAMES F GLEASON A MEMBER OF THE TEAM WHICH IS FUNDED BY THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION THE MEASUREMENTS WERE LOWER THAN WE EXPECTED BASED ON THE PREVIOUS TREND SAID MR GLEASON WHO IS AN ATMOSPHERIC CHEMIST AT UNIVERSITY SPACE RESEARCH ASSOCIATION A PRIVATE NOTFORPROFIT GROUP HOWEVER HE PLAYED DOWN ANY REASON FOR UNDUE ALARM OZONE PROTECTS THE EARTH BY BLOCKING THE SUN'S ULTRAVIOLET LIGHT WHICH IS KNOWN TO CAUSE SKIN CANCER HE SAID PEOPLE EXPOSING THEMSELVES TO SUNLIGHT SHOULD BE TAKING THE SAME PRECAUTIONS THEY USUALLY TAKE SUCH AS USING SUNBLOCK LOTIONS BUT HE ADDED THAT ANY DECREASE IN THE OZONE LAYER COULD LEAD TO AN INCREASE IN ULTRAVIOLET LIGHT ON THE EARTH'S SURFACE HOW MUCH FLUCTUATION OF OZONE VOLUME IS CAUSED BY HUMAN ACTIVITY AND HOW MUCH IS PART OF NATURAL CYCLES REMAINS CONTROVERSIAL AMONG SCIENTISTS MR GLEASON AND OTHER SCIENTISTS SAID THAT AMONG THE REASONS FOR THE SHARPERTHANEXPECTED DROP LAST YEAR IS PROBABLY THE VOLCANIC ERUPTION IN THE PHILIPPINES THEY SAID AEROSOL PARTICLES SPEWED BY THE VOLCANO CAUSED CHEMICAL AND ATMOSPHERIC REACTIONS THAT LED TO GREATER OZONE DEPLETION THAN PREDICTED THE SCIENTISTS SAID THEIR DATA SHOWED THAT THE GLOBAL OZONE LEVEL LAST YEAR FELL 2 TO 3 BELOW THE LOWEST LEVELS OBSERVED IN EARLIER YEARS THE SMALLEST DECREASE WAS ON THE EQUATORIAL REGION THE LARGEST DECREASE 3 TO 4 ON AVERAGE WAS ABOVE THE REGIONS INCLUDING SIBERIA ALASKA AND GREENLAND THE LEVELS WERE DOWN AS MUCH AS 20 FROM NORMAL AT CERTAIN LOCATIONS IN THOSE REGIONS MR GLEASON SAID OZONE LEVELS WERE 11 TO 12 BELOW NORMAL ABOVE THE MIDALTITUDE REGIONS WHICH ARE THE MOST HEAVILY POPULATED AREAS THEY INCLUDE MOST OF CANADA AND THE US AND EUROPE AND LARGE PARTS OF CHINA AT A NEWS CONFERENCE IN WASHINGTON NASA SCIENTISTS SAID THE SHARPEST DROP IN THE OZONE LEVEL LAST YEAR OCCURRED IN DECEMBER AND ACCORDING TO PRELIMINARY DATA CONTINUED EVEN MORE INTO THIS SPRING THE RESEARCHERS EXPECT THE OZONE DEPLETION TO GRADUALLY WORSEN TILL THE TURN OF THE CENTURY WHEN THE ELIMINATION OF THE USE OF MANUFACTURED OZONEDEPLETING CHEMICALS IS EXPECTED TO PRODUCE IMPROVEMENTS 9304230018 930423 POLITICS & POLICY THIS WEEKEND'S MARCH ON WASHINGTON MAY ROCK CLINTON'S DELICATE TIGHTROPE ACT ON GAY ISSUES BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ABOUT THE ONLY VACANCY IN TOWN THIS WEEKEND WILL BE IN THE LIVING QUARTERS AT THE WHITE HOUSE AS GAY MEN AND LESBIANS AS MANY AS A MILLION TAKE OVER ALMOST EVERY AVAILABLE PUBLIC ACCOMMODATION IN THE CAPITAL PRESIDENT CLINTON WILL BE CONVENIENTLY ABSENT MEETING DEMOCRATIC LEGISLATORS IN VIRGINIA AND GIVING A SPEECH IN BOSTON BUT WHETHER HERE OR THERE MR CLINTON WILL FEEL THE HEAT THE GAY AND LESBIAN COMMUNITY IS THE MOST OUTSPOKEN AND THE MOST FLAMBOYANT CONSTITUENCY IN THE DEMOCRATIC PARTY GENEROUS TOO IT RAISED MORE THAN 3 MILLION FOR MR CLINTON'S PRESIDENTIAL CAMPAIGN AND VOTED OVERWHELMINGLY IN HIS FAVOR IN NOVEMBER FOR MR CLINTON WHO HAS VOWED AGAIN AND AGAIN TO SUPPORT MOST OF THE GAY AND LESBIAN POLITICAL AGENDA THE MARCH WILL REQUIRE A DELICATE POLITICAL BALANCING ACT BY SLIPPING OUT OF TOWN THE PRESIDENT WILL DISTANCE HIMSELF FROM THE GUERRILLATHEATER SIDESHOWS THAT WILL ALMOST SURELY TAKE UP A LARGE CHUNK OF THE WEEKEND TV COVERAGE YOU GO BACK TO THE FOUNDING FATHERS AND WE HAD SOME PRETTY CORKY PEOPLE THEN TOO SAYS MARLA STEVENS AN INDIANA LOBBYIST A MARCH ORGANIZER AND THE GREATGREATGREATGREATGREAT GRANDDAUGHTER OF THOMAS JEFFERSON BUT MR CLINTON CAN'T ESCAPE HIS BASIC PLEDGE TO SUPPORT THE GOALS OF THE GAY AND LESBIAN COMMUNITY AND THAT'S WHERE THE DELICATE WORK NEEDS TO BE DONE HE WANTS TO RETAIN THE LOYALTY OF THIS IMPORTANT CONSTITUENCY WITHOUT OFFENDING NONHOMOSEXUAL VOTERS CONCERNED ABOUT THE HOMOSEXUAL LIFESTYLE THE STRATEGY IS TO MOVE SLOWLY AND QUIETLY THE ONLY CLINTON ASSOCIATE MAKING A HIGHLIGHT APPEARANCE AT A WEEKEND EVENT IS JAMES CARVILLE WHO RAN THE PRESIDENT'S CAMPAIGN HE WILL SPEAK TO A MEETING OF ELECTED GAY AND LESBIAN POLITICIANS AND HE SAYS HIS TALK WILL BE A GENERAL REVIEW OF WHAT THE CLINTON ADMINISTRATION IS UP TO FOR THE MARCH'S ORGANIZERS NO LESS THAN THE PRESIDENT THIS IS SERIOUS BUSINESS THESE GAY AND LESBIAN PEOPLE WITH THEIR BISEXUAL AND TRANSGENDER ALLIES HOPE THE AMERICAN PEOPLE WATCHING THE MARCH AND RALLY ON TELEVISION WILL DISMISS THE SIDESHOWS FOR WHAT THEY ARE AND CONCENTRATE ON THE MAIN ARENA FOR THIS THEY BELIEVE IS THEIR TIME THE GAY '90S AND WITH A SYMPATHETIC PRESIDENT IN THE WHITE HOUSE THE MOMENT HAS ARRIVED FOR THE PAYOFF WE ARE A LARGE AND DYNAMIC POLITICAL COMMUNITY AND WE HAVE POLITICAL GOALS SAYS TORIE OSBORN EXECUTIVE DIRECTOR OF THE NATIONAL GAY AND LESBIAN TASK FORCE WE ARE HERE TO RALLY OUR TROOPS AND MOVE FORWARD ON A LOT OF THINGS ORGANIZERS OF THE RALLY WANT PASSAGE OF A CIVILRIGHTS BILL TO END DISCRIMINATION BY STATE AND FEDERAL GOVERNMENTS INCLUDING THE MILITARY AGAINST LESBIAN GAY BISEXUAL AND TRANSGENDER AMERICANS REPEAL OF ALL SODOMY LAWS AND MASSIVE INCREASES IN FUNDING FOR AIDS EDUCATION RESEARCH AND PATIENT CARE THERE'S ANOTHER ISSUE THAT MANY GAY AND LESBIAN LEADERS NEVER DREAMED THEY WOULD BE PRESSING MR CLINTON'S PLEDGE TO LIFT A BAN ON HOMOSEXUALS IN THE MILITARY A VOW THAT HE MADE IN AN ALMOST OFFHAND ANSWER TO A QUESTION IN 1991 WE DIDN'T CHOOSE IT AS AN ISSUE SAYS MS OSBORN WE WOULDN'T TAKE ON THE MOST CONSERVATIVE INSTITUTION IN THE COUNTRY FIRST WE'RE NOT STUPID IT'S A CLOSE CALL WITH THE PUBLIC IN THE NEW WALL STREET JOURNAL/NBC NEWS POLL 43 OF AMERICANS FAVOR ALLOWING OPENLY GAY MEN AND LESBIANS TO SERVE IN THE MILITARY WHILE 47 OPPOSE IT HOWEVER MORE THAN HALF THE OPPONENTS SAY THEY COULD ACCEPT A SITUATION IN WHICH GAYS AND LESBIANS WERE ALLOWED TO SERVE AS LONG AS THEY DIDN'T OPENLY DECLARE THEIR HOMOSEXUALITY AND OBSERVED THE CODE OF MILITARY CONDUCT IN RECENT MONTHS THE SOCALLED CHRISTIAN RIGHT HAS SEIZED THE GAYSINTHEMILITARY ISSUE AND USED IT TO RAISE CASH AND RECRUIT NEW MEMBERS GAY AND LESBIAN LEADERS CONCEDE THEY WERE CAUGHT OFF GUARD BY THE ASSAULT AND FEAR THEY ARE STILL TRYING TO CATCH UP THEIR EFFORT IS BEING LED BY A GROUP CALLED THE CAMPAIGN FOR MILITARY SERVICE WHICH HAS RECEIVED SIGNIFICANT FINANCIAL SUPPORT FROM HOLLYWOOD HEAVYWEIGHTS BARRY DILLER AND DAVID GEFFEN THE GROUP HAS HIRED LOBBYISTS AND POLLSTERS AND PLANS TV COMMERCIALS FEATURING GAY MEMBERS OF THE MILITARY SOME LEADERS SUPPORTING LIFTING THE BAN ON HOMOSEXUALS IN THE MILITARY HAVE WORKED HARD TO CONTROL THIS WEEKEND'S EVENTS IN A WAY TO ENSURE THAT THE NONHOMOSEXUAL COMMUNITY WOULDN'T BE OFFENDED FOR INSTANCE THE MARCH'S ORGANIZERS ARE PLAYING DOWN A GAYLESBIAN VETERANS' MARCH FROM THE VIETNAM MEMORIAL ACROSS THE RIVER TO ARLINGTON NATIONAL CEMETERY WHERE PARTICIPANTS WANT TO PLACE PINK TRIANGLES THE GAY SYMBOL ON THOUSANDS OF GRAVES IN ANY EVENT THE PENTAGON HAS REFUSED TO GIVE THE MARCHERS A PERMIT TO ENTER THE CEMETERY THEY MAY END UP AT THE LINCOLN MEMORIAL STILL ON THE SCHEDULE IS A TAPS CEREMONY AT THE VIETNAM MEMORIAL LATE TOMORROW AND A RALLY AT THE PENTAGON MONDAY MORNING GAY LEADERS ARE OPTIMISTIC THAT MR CLINTON WILL BE ABLE TO DELIVER A NUMBER OF ITEMS ON THEIR AGENDA SOME WHO MET WITH HIM IN THE OVAL OFFICE SAY THEY ARE CONVINCED HE'S TRYING HARD TO FIND SOMEONE TO BE A WHITE HOUSE CZAR TO COORDINATE AND PUSH THE FIGHT AGAINST AIDS THOUGH THEY WORRY THAT TWO PEOPLE HAVE ALREADY TURNED THE JOB DOWN THEIR HOPEDFOR ANTIAIDS SPENDING INCREASES MAY BE WITHIN THEIR GRASP THE CIVILRIGHTS BILL BEING DRAFTED IN MASSACHUSETTS DEMOCRATIC SEN EDWARD KENNEDY'S OFFICE WITH THE HELP OF GAY AND LESBIAN EXPERTS IS ANOTHER MATTER ALTOGETHER IT WOULD FORBID DISCRIMINATION ON THE BASIS OF SEXUAL ORIENTATION THOUGH TO MAKE IT MORE PALATABLE TO THE CHRISTIAN RIGHT RELIGIOUS ORGANIZATIONS WOULD BE EXEMPTED IT IS PART OF A PACKAGE THAT WOULD REPEAL LAWS THAT CRIMINALIZE PRIVATE SEXUAL BEHAVIOR LEGITIMIZE CROSSGENDER BEHAVIOR AND SAMESEX RELATIONSHIPS ALLOW HOMOSEXUALS TO ADOPT CHILDREN AND INCLUDE MORE INFORMATION ABOUT HOMOSEXUALS IN SCHOOLS THE GAY AND LESBIAN LEADERS WILL DEMAND THAT MR CLINTON SUPPORT THE LEGISLATION THEY SAY HE HAS TOLD THEM HE WILL BUT NO ONE EXPECTS QUICK PASSAGE IT'S GOING TO TAKE A FEW YEARS CONCEDES MS OSBORN OF THE NATIONAL GAY AND LESBIAN TASK FORCE IT'S THE MESSAGE THAT COUNTS SAYS ROBERT BRAY A SPOKESMAN FOR THE MARCH'S ORGANIZERS WE ARE HERE TO SEND A MESSAGE ABOUT ENDING DISCRIMINATION AND WE ARE SAYING WE ARE YOUR BROTHERS AND SISTERS AND YOUR RABBIS AND PREACHERS AND WE WILL GO HOME EMPOWERED DO YOU FAVOR OR OPPOSE ALLOWING OPENLY GAY MEN AND LESBIAN WOMEN TO SERVE IN THE MILITARY 9304230017 930423 BUSINESS BRIEF HUTCHINSON TECHNOLOGY INC FIRM REPORTS 94 INCREASE IN FISCAL 2NDQUARTER NET HUTCHINSON TECHNOLOGY INC REPORTED A 94 JUMP IN NET INCOME FOR ITS FISCAL SECOND QUARTER ENDED MARCH 28 TO 55 MILLION OR 102 A SHARE FROM 29 MILLION OR 68 CENTS A SHARE A YEAR EARLIER THE GAIN ACCOMPANIED A 337 RISE IN REVENUE FOR THE QUARTER TO 557 MILLION FROM 417 MILLION A YEAR AGO JEFF W GREEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE COMPANY WHICH MAKES SUSPENSION ASSEMBLIES FOR COMPUTER DISK DRIVES ATTRIBUTED THE SALES GAIN TO A SHIFT TO HIGHERVALUE SUSPENSIONS REQUIRED FOR THE NEWEST DISK DRIVE PRODUCTS FOR ITS FIRST SIX MONTHS THE COMPANY IN HUTCHINSON MINN REPORTED NET INCOME OF 113 MILLION OR 210 A SHARE UP 124 FROM NET OF 5 MILLION OR 122 A SHARE A YEAR EARLIER AS SALES CLIMBED 38 TO 1061 MILLION FROM 769 MILLION A YEAR EARLIER 9304230016 930423 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 1/16 HIGH 2 13/16 LOW 2 3/4 NEAR CLOSING BID 2 7/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 303 30 TO 89 DAYS 305 90 TO 119 DAYS 306 120 TO 149 DAYS 307 150 TO 179 DAYS 308 180 TO 259 DAYS 315 260 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 310 30 DAYS 310 60 DAYS 311 90 DAYS CERTIFICATES OF DEPOSIT 258 ONE MONTH 263 TWO MONTHS 267 THREE MONTHS 278 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 308 THREE MONTHS 310 SIX MONTHS BANKERS ACCEPTANCES 299 30 DAYS 299 60 DAYS 299 90 DAYS 301 120 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 9 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 19 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 282 13 WEEKS 296 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 7 60 DAYS 712 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 706 60 DAYS 716 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 9304230015 930423 SOUTHAM PLANS TO SELL TWO DIVISIONS RETURN TO ITS CORE BUSINESSES TORONTO SOUTHAM INC TOOK A FURTHER STEP TOWARD DIVESTING ITSELF OF ITS REMAINING PRINTING AND GRAPHICS OPERATIONS BY AGREEING TO SELL TWO DIVISIONS TO SEPARATE BUYERS SOUTHAM SAID THE LAIRD GROUP TORONTO WILL ACQUIRE EMPRESS GRAPHICS INC BASED IN SCARBOROUGH ONTARIO AND THAT ST JOSEPH PRINTING LTD BASED IN CONCORD ONTARIO WILL PURCHASE NETWORK STUDIOS INC OF MISSISSAUGA ONTARIO TERMS OF THE TWO TRANSACTIONS WHICH ARE TO CLOSE BY THE END OF MAY WEREN'T DISCLOSED SOUTHAM ANNOUNCED ITS PLANS TO SELL ITS CANADIAN AND US PRINTING OPERATIONS IN OCTOBER 1991 AS PART OF A STRATEGIC PLAN TO CONCENTRATE ON ITS CORE NEWSPAPERPUBLISHING BUSINESS THE SALES WHICH HAVE TAKEN PLACE SINCE THEN TOGETHER WITH THE SALE OF ITS 22 STAKE IN FELLOW PUBLISHER TORSTAR CORP AND A VARIETY OF COSTCUTTING MEASURES HAVE ALLOWED SOUTHAM TO CUT ITS DEBT FROM ABOUT 700 MILLION CANADIAN DOLLARS US556 MILLION IN 1991 TO C300 MILLION AT THE END OF 1992 AN EQUITY INFUSION OF C180 MILLION FROM ONE OF ITS NEW SHAREHOLDERS MONTREAL FINANCIER PAUL DESMARAIS IS EXPECTED TO FURTHER REDUCE THE COMPANY'S DEBT BURDEN TO ABOUT C120 MILLION SEPARATELY SOUTHAM SAID IT WILL CALL OFF PLANS TO RAISE UP TO C100 MILLION IN NEW EQUITY THROUGH A RIGHTS ISSUE THIS YEAR CITING ITS IMPROVED FINANCIAL RESULTS SOUTHAM WHOSE REMAINING ASSETS INCLUDE NEWSPAPER PUBLISHING BOOK RETAILING AND BUSINESS COMMUNICATIONS OPERATIONS REPORTED A NET LOSS OF C72 MILLION OR 11 CANADIAN CENTS A SHARE FOR THE FIRST QUARTER OF 1993 COMPARED WITH A NET LOSS OF C153 MILLION OR 26 CANADIAN CENTS A SHARE IN THE YEAREARLIER PERIOD 9304230014 930423 ALLSTATE INSURANCE TO LET POLICIES LAPSE IN FLORIDA TO LOWER HURRICANE EXPOSURE BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL ALLSTATE INSURANCE CO SAID IT WON'T RENEW POLICIES FOR 300000 FLORIDA HOMEOWNERS AND OTHER POLICYHOLDERS THE MOST DRASTIC STEP YET TAKEN BY A COMPANY TRYING TO REDUCE ITS EXPOSURE TO FUTURE HURRICANES THE MOVE WHICH AFFECTS A QUARTER OF THE COMPANY'S PROPERTY POLICYHOLDERS IN FLORIDA IS THE LATEST EFFORT BY AN INSURANCE COMPANY TO PROTECT ITSELF AGAINST LOSSES ON THE SCALE OF LAST YEAR'S HURRICANE ANDREW THE COSTLIEST STORM IN US HISTORY OTHER INSURERS HAVE SOUGHT TO LIMIT THEIR RISKS BY NOT SELLING NEW POLICIES ALLSTATE IS THE FIRST TO SHED SUCH A LARGE NUMBER OF ITS EXISTING POLICYHOLDERS THE COMPANY BLAMED AN INABILITY TO BUY AFFORDABLE REINSURANCE FOR ITS DECISION OTHER INSURERS ARE LIKELY TO FOLLOW ALLSTATE'S LEAD BUT FLORIDA'S BIGGEST INSURER STATE FARM MUTUAL AUTOMOBILE INSURANCE CO OF BLOOMINGTON ILL SAID IT HAS NO IMMEDIATE PLANS TO DO SO ABANDONED HOMEOWNERS AND RENTERS WHO CANNOT GET INSURANCE FROM OTHER COMPANIES ARE LIKELY TO FIND THEMSELVES IN A STATE INSURANCE POOL WHICH BY LAW MUST CHARGE 25 MORE FOR COVERAGE THAN THE COMMERCIAL MARKET INSURANCE IS GOING TO BE HARD TO FIND SAID FLORIDA INSURANCE COMMISSIONER TOM GALLAGHER ADDING THAT HE HOPES THE SHORTAGE WILL BE TEMPORARY I HAVE FAITH THAT THE GREED OF THE INSURANCE INDUSTRY WILL BRING COMPANIES BACK ALLSTATE FLORIDA'S SECONDBIGGEST INSURER BEHIND STATE FARM CURRENTLY HAS 11 MILLION PROPERTY INSURANCE POLICIES ON ITS BOOKS IN FLORIDA BY REDUCING ITS EXPOSURE TO 800000 OVER THE NEXT TWO YEARS IT LOWERS THE MAXIMUM AMOUNT IT CAN LOSE IN A FLORIDA STORM TO 1 BILLION ALLSTATE ALSO PLANS TO RAISE RATES BY AN UNDISCLOSED AMOUNT LAST AUGUST'S HURRICANE ANDREW COST ALLSTATE A UNIT OF CHICAGOBASED SEARS ROEBUCK & CO 165 BILLION THE INSURANCE INDUSTRY LOST MORE THAN 16 BILLION ON THE STORM AND PROPERTY REINSURANCE PRICES HAVE SOARED SINCE ANDREW THE DECISION TO REDUCE THE NUMBER OF PROPERTY POLICIES WAS INDEED A LAST RESORT SAID ALLSTATE VICE PRESIDENT EDWARD YOUNG SEARS IS TRYING TO TAKE ALLSTATE PUBLIC IN WHAT COULD BE THE LARGEST INITIAL PUBLIC OFFERING IN HISTORY BY REDUCING ITS EXPOSURE TO A FLORIDA HURRICANE ALLSTATE IS ASSURING INVESTORS THE COMPANY WON'T BE WASHED AWAY BY A SINGLE STORM SAID AM BEST CO SENIOR VICE PRESIDENT JOHN SNYDER THAT CONCERN WAS A HUGE NEGATIVE FOR ALLSTATE HE SAID MR GALLAGHER HAS ORDERED AN INVESTIGATION INTO ACTIONS THAT ALLSTATE AS WELL AS PRUDENTIAL INSURANCE CO OF AMERICA AND TRAVELERS CORP HAVE TAKEN TO LIMIT THEIR EXPOSURES TO STORM LOSSES THERE IS HOWEVER NO STATE LAW PREVENTING INSURERS FROM DROPPING CUSTOMERS EACH OF THE COMPANIES HAS BEEN SUMMONED TO TESTIFY IN A SERIES OF PUBLIC HEARINGS NEXT MONTH TRAVELERS HAS STOPPED SELLING NEW POLICIES IN THE MIAMI AREA AND PRUDENTIAL PLANS ON NOT RENEWING POLICIES FOR SOME 25000 HOMEOWNERS THE STATE INSURANCE POOL EXPECTS TO HAVE AS MANY AS 700000 NEW CUSTOMERS AS COMMERCIAL INSURERS CUT BACK WE ARE GOING TO BE BUSY SAID JAMES BAX CHAIRMAN OF THE FLORIDA RESIDENTIAL PROPERTY AND CASUALTY JOINT UNDERWRITING ASSOCIATION WHICH NOW HAS 25000 CUSTOMERS THE SIZE OF THE POOL WOULD GROW EVEN BIGGER IF STATE FARM WITH 23 OF THE FLORIDA MARKET FOLLOWED ALLSTATE'S EXAMPLE I'M SURE THEY'RE LOOKING AT THE ALLSTATE SITUATION AND THEY'RE GOING TO HAVE TO THINK ABOUT IT MR BAX SAID REDUCING EXPOSURE TO CATASTROPHIC RISK IS THE NAME OF THE GAME A SPOKESMAN FOR STATE FARM SAID THE COMPANY HAS NO PLANS TO STOP RENEWING POLICIES 9304230012 930423 WHO'S NEWS PATRICOF & CO VENTURES INC PATRICOF & CO VENTURES INC NEW YORK THIS VENTURECAPITAL FIRM SAID PATRICIA M CLOHERTY WAS NAMED PRESIDENT SUCCEEDING ALAN PATRICOF WHO REMAINS CHAIRMAN MS CLOHERTY 50 YEARS OLD HAS BEEN WITH PATRICOF FOR MORE THAN 20 YEARS AND HAD BEEN SENIOR VICE PRESIDENT AND GENERAL PARTNER OF THE VARIOUS FUNDS UNDER PATRICOF MANAGEMENT THE CONCERN CURRENTLY HAS MORE THAN 14 BILLION IN FUNDS UNDER MANAGEMENT WORLDWIDE 9304230011 930423 BUSINESS BRIEF SOFTWARE PUBLISHING CORP LOWER REVENUE CONTRIBUTED TO PROFIT DROP OF ABOUT 50 SOFTWARE PUBLISHING CORP SANTA CLARA CALIF SAID NET INCOME FELL BY NEARLY HALF IN ITS FISCAL SECOND QUARTER THE MAKER OF PERSONAL COMPUTER SOFTWARE POSTED PROFIT OF 21 MILLION OR 16 CENTS A SHARE VS YEAREARLIER EARNINGS OF 41 MILLION OR 32 CENTS A SHARE REVENUE WAS 324 MILLION DOWN 25 FROM THE YEARAGO 434 MILLION THE COMPANY CITED PRICE PRESSURES FOR PRODUCTS THAT RUN ON THE WINDOWS PLATFORM AND LOWERTHANEXPECTED REVENUE FROM INTERNATIONAL MARKETS FOR THE SIX MONTHS THE COMPANY POSTED NET OF 63 MILLION OR 49 CENTS A SHARE COMPARED TO YEAREARLIER NET OF 82 MILLION OR 65 CENTS A SHARE REVENUE FELL 18 TO 69 MILLION FROM 845 MILLION 9304230010 930423 THE SEMICONDUCTOR PACT'S BAD EXAMPLE BY JAMES BOVARD THE CLINTON ADMINISTRATION IS SEEKING TO END THE US TRADE DEFICIT WITH MASSIVE INCREASES IN THE EXPORT OF VERBAL SLUDGE TEMPORARY QUANTITATIVE INDICATORS IS THE MOTTO OF THE ADMINISTRATION'S TRADE POLICY UNFORTUNATELY THE CLINTON APPROACH WHICH LOOKS FOR MEASURABLE INCREASES OF SPECIFIC US EXPORTS IS CERTAIN TO PROVOKE MORE TRADE CONFLICTS AND ACRIMONY IN THE FUTURE AND TO MAKE SOME OF AMERICA'S PREMIER MANUFACTURERS LOOK LIKE BEGGARS OF MARKET SHARE EARLIER THIS WEEK US AND EUROPEAN COMMUNITY OFFICIALS WORKED HARD TO ADVERTISE MODEST PROGRESS IN RESOLVING USEC TRADE DISPUTES TOWARD JAPAN THE ADMINISTRATION IS USING A MORE HEAVYHANDED APPROACH CLINTON ADMINISTRATION OFFICIALS ARE TOUTING THE USJAPAN SEMICONDUCTOR ARRANGEMENT AS THE MODEL FOR FUTURE TRADE POLICY THE FOREIGN MARKET SHARE OF SEMICONDUCTORS PURCHASED BY JAPANESE FIRMS RECENTLY EXCEEDED 20 US TRADE REPRESENTATIVE MICKEY KANTOR HAILED THE SALES RESULT DECLARING ON MARCH 19 THAT SETTING A TARGET FIGURE APPEARS TO HAVE BEEN SUCCESSFUL BUT RATHER THAN OFFERING A VALUABLE MODEL THE SEMICONDUCTOR ARRANGEMENT ILLUSTRATES HOW AN ARTIFICIAL DEFINITION OF FAIR TRADE FOMENTS POLITICAL RACKETEERING IN 1986 THE US COMMERCE DEPARTMENT INVESTIGATED JAPANESE SEMICONDUCTOR EXPORTS TO THE US AND IMPOSED ARBITRARILY HIGH DUMPING PENALTIES ON JAPANESE COMPANIES THESE WERE THEN USED AS LEVERAGE TO PRESSURE JAPAN TO SIGN A PACT SEEKING TO RESTRICT WORLDWIDE SEMICONDUCTOR TRADE THE SEMICONDUCTOR ARRANGEMENT SIGNED IN JULY OF THAT YEAR MADE IT AN OFFICIAL ACT OF TRADE WAR FOR A FOREIGN GOVERNMENT NOT TO COMPEL ITS OWN DOMESTIC COMPANIES TO RAPIDLY INCREASE THEIR PURCHASES OF AMERICAN PRODUCTS THE 1986 AGREEMENT POLITICALLY IMPALED ONE OF AMERICA'S MOST COMPETITIVE INDUSTRIES THE COMMERCE DEPARTMENT ACQUIRED THE POWER TO SET FLOOR PRICES FOR JAPANESE CHIPS SOLD IN THE US AND THAT AUGUST IT ANNOUNCED ITS FIRST FAIR MARKET VALUES FOR CHIP IMPORTS US COMPUTER AND ELECTRONICS COMPANIES THE PRIMARY CHIP USERS WERE STUNNED AS THE DECREE RAISED CHIP PRICES BY 200 FAR MORE THAN EVEN THE HIGHEST ALLEGED DUMPING MARGINS DOMESTIC SEMICONDUCTOR PRODUCERS COULD NOT SATISFY DOMESTIC DEMAND ARTHUR DENZAU OF THE CENTER FOR THE STUDY OF AMERICAN BUSINESS ESTIMATED THAT THE SEMICONDUCTOR ARRANGEMENT RESULTED IN UP TO 11000 JOBS LOST IN COMPANIES USING CHIPS THE JOURNAL OF COMMERCE REPORTED IN 1988 THE SUPPLY CRUNCH HAS LEFT US ELECTRONICS MAKERS WRINGING THEIR HANDS OVER LOST SALES AND PROFITS DELAYED PRODUCT INTRODUCTIONS AND WORSENED RELATIONS WITH CUSTOMERS AT THE TIME THE SEMICONDUCTOR ARRANGEMENT WAS SIGNED THE JAPANESE AMBASSADOR SENT A SIDE LETTER TO THENUS TRADE REP CLAYTON YEUTTER DECLARING THE GOVERNMENT OF JAPAN RECOGNIZES THE US SEMICONDUCTOR INDUSTRY'S EXPECTATION THAT SEMICONDUCTOR SALES IN JAPAN OF FOREIGN CAPITALAFFILIATED COMPANIES WILL GROW TO AT LEAST SLIGHTLY ABOVE 20 OF THE JAPANESE MARKET IN FIVE YEARS THE GOVERNMENT OF JAPAN CONSIDERS THAT THIS CAN BE REALIZED AND WELCOMES ITS REALIZATION THE LETTER CLEARLY DID NOT COMMIT THE JAPANESE GOVERNMENT TO ENFORCE PURCHASING OF AMERICAN CHIPS BY JAPANESE COMPANIES BUT IN LATE MARCH 1987 PRESIDENT REAGAN ANNOUNCED THAT THE JAPANESE HAD VIOLATED THE PACT IN PART BECAUSE AMERICAN COMPANIES HAD NOT INCREASED THEIR CHIP SALES IN JAPAN THE JAPANESE WERE PRONOUNCED GUILTY OF UNFAIR TRADE SIMPLY BECAUSE AMERICAN COMPANIES DID NOT SELL AS MANY SEMICONDUCTORS IN JAPAN AS THE US BUREAUCRATS THOUGHT THEY SHOULD BE ABLE TO SELL IN 1991 THE SEMICONDUCTOR ARRANGEMENT WAS MODIFIED AND EXTENDED THE 1991 PACT STATED THAT JAPAN RECOGNIZES THAT THE US SEMICONDUCTOR INDUSTRY EXPECTS THAT THE FOREIGN MARKET SHARE WILL GROW TO MORE THAN 20 OF THE JAPANESE MARKET BY THE END OF THE 1992 AND CONSIDERS THAT THIS CAN BE REALIZED THE AGREEMENT SPECIFIES THAT THE 20 FIGURE IS NEITHER A GUARANTEE A CEILING NOR A FLOOR ON THE FOREIGN MARKET SHARE NOT SURPRISINGLY FIERCE DISPUTES HAVE AGAIN ARISEN OVER THE TRADE PACT'S MEANING DESPITE THE FACT THAT THE 1991 AGREEMENT EXPLICITLY MADE NO GUARANTEES CLINTON ADMINISTRATION OFFICIALS IMPLIED THEY MIGHT RETALIATE AGAINST JAPANESE EXPORTS IF THE 20 MARKET SHARE WERE NOT REACHED NOW THAT THE FOREIGN SHARE OF SEMICONDUCTORS PURCHASED BY JAPANESE FIRMS HAS HIT 20 MR KANTOR DECLARES THAT 20 IS A FLOOR NOT A CEILING THE CLINTON ADMINISTRATION'S RESENTMENT OF THE US MERCHANDISE TRADE DEFICIT WITH JAPAN ESTIMATED AT 46 BILLION LAST YEAR IS DRIVING MR KANTOR TO MAKE INCREASINGLY FARFETCHED STATEMENTS IN TESTIMONY BEFORE THE HOUSE WAYS AND MEANS COMMITTEE ON WEDNESDAY HE DECLARED THAT THE JAPANESE MARKET IS BASICALLY CLOSED FOR SEMICONDUCTORS AUTOMOBILES COMPUTERS AND SEVERAL OTHER PRODUCTS IT IS ABSURD FOR US GOVERNMENT OFFICIALS TO CONDEMN THE JAPANESE AUTO MARKET AS CLOSED WHEN US CAR MAKERS HAVE ONLY RECENTLY DEIGNED TO SHIP TO JAPAN AUTOS WITH THE STEERING WHEEL ON THE RIGHT SIDE OF THE CAR THE JAPANESE LIKE THE BRITISH DRIVE ON THE WRONG SIDE OF THE ROAD AND IT IS PECULIAR FOR MR KANTOR TO DECLARE THAT THE JAPANESE SEMICONDUCTOR MARKET IS CLOSED ONLY A FEW WEEKS AFTER HE ANNOUNCED THAT THE JAPANESE HAD MET THE USPROCLAIMED GOAL OF A 20 FOREIGN MARKET SHARE ALSO AMERICAN PERSONAL COMPUTERS ARE BARNSTORMING JAPAN PETER WOLFF A TOKYOBASED TECHNOLOGY EXPERT WITH KIDDER PEABODY PREDICTS THAT NEC JAPAN'S DOMINANT COMPUTER MAKER IS GOING TO GET ITS HEAD HANDED TO IT BY US COMPANIES THE US ALREADY HAS A FULLY DEVELOPED SYSTEM OF MANAGED TRADE AKIN TO WHAT CLINTON ADMINISTRATION OFFICIALS ADVOCATE FOR JAPAN THE US GOVERNMENT IMPOSES MORE THAN 3000 DIFFERENT IMPORT QUOTAS ON TEXTILES AND APPAREL TRADE OFFICIALS SOMETIMES GO TO MANIACAL LENGTHS TO DICTATE A FOREIGN COUNTRY'S PRECISE FAIR SHARE OF THE US MARKET MEXICO IS ALLOWED TO SELL THE US ONLY 35292 BRAS EACH YEAR MANAGED TRADE IN TEXTILES HAS CREATED A BUREAUCRATIC MONSTROSITY AND GIVEN GOVERNMENT OFFICIALS SWEEPING ARBITRARY POWER OVER IMPORTERS AND THEIR DOMESTIC CUSTOMERS PICK A NUMBER ANY NUMBER IS A PATHETIC GUIDE FOR US TRADE POLICY THE GOVERNMENT HAS NO RIGHT TO DICTATE THE MARKET SHARE THAT AMERICAN EXPORTERS ARE ENTITLED TO IN ANY FOREIGN COUNTRY MR BOVARD WRITES OFTEN ON TRADE 9304230009 930423 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 FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF DEBENTURES DUE APRIL 29 1998 PRICED AT PAR TO YIELD 531 ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR ONE YEAR THE ISSUE WILL BE OFFERED THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS IDAHO POWER CO 160 MILLION TWOPART ISSUE OF FIRST MORTGAGE BONDS PRICED THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC ACCORDING TO MCM CORPORATEWATCH THE FIRST PART CONSISTING OF 80 MILLION OF FIRST MORTGAGE BONDS DUE MAY 1 2003 WAS PRICED AT PAR TO YIELD 64 THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 055 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE THE SECOND PART CONSISTING OF 80 MILLION OF FIRST MORTGAGE BONDS DUE MAY 1 2023 WAS PRICED AT PAR TO YIELD 75 NONCALLABLE FOR 10 YEARS THE BONDS WERE PRICED AT A SPREAD OF 082 PERCENTAGE POINT OVER THE TREASURY 30YEAR BOND THE ISSUES ARE RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP KOREA DEVELOPMENT BANK 300 MILLION OF NOTES DUE MAY 1 2000 PRICED AS 6 1/4 S AT 99332 TO YIELD 637 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 089 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC NEW YORK TELEPHONE CO 100 MILLION OF DEBENTURES DUE MAY 1 2013 PRICED AS 7S AT 98419 TO YIELD 715 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WON BY SALOMON BROTHERS INC WAS PRICED AT A SPREAD OF 04 PERCENTAGE POINT ABOVE THE TREASURY 20YEAR NOTE THE ISSUE IS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P NEW YORK TELEPHONE IS A UNIT OF NYNEX CORP OHIO BELL TELEPHONE CO 100 MILLION OF NOTES DUE MAY 1 2000 PRICED AS 5 3/4 AT 9985 TO YIELD 5776 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 265 BASIS POINTS ABOVE THE TREASURY SEVENYEAR NOTE RATED TRIPLEA BY BOTH MOODY'S AND S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO OHIO BELL IS A UNIT OF AMERITECH CORP DUPAGE ILL 160 MILLION GENERAL OBLIGATION REFUNDING BONDS PRICED BY A WILLIAM BLAIR & CO GROUP YIELDS RANGE FROM 24 IN 1994 TO 57 IN 2021 THE BONDS HAVE BEEN RATED TRIPLEA BY MOODY'S S&P AND FITCH INVESTORS SERVICE INC ACM MUNI SECURITIES INCOME FUND INITIAL OFFERING OF 10 MILLION COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY PRUDENTIAL SECURITIES INC FIDELITY NATIONAL FINANCIAL INC 175 MILLION COMMON SHARES PRICED AT 2275 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO MUNICIPAL ADVANTAGE FUND INC INITIAL OFFERING OF 67 MILLION COMMON SHARES PRICED AT 15 EACH THROUGH UNDERWRITERS LED BY OPPENHEIMER & CO O'REILLEY AUTOMOTIVE INC INITIAL OFFERING OF 2333332 COMMON SHARES PRICED AT 1750 EACH THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP TCW/DW TERM TRUST 2003 100 MILLION COMMON SHARES PRICED AT 10 EACH THROUGH UNDERWRITERS LED BY DEAN WITTER REYNOLDS INC WEST COAST BANCORP INITIAL OFFERING OF 600000 COMMON SHARES PRICED AT 1050 A SHARE THROUGH UNDERWRITERS LED BY ADVEST YOUNKERS INC 22 MILLION COMMON SHARES PRICED AT 30 EACH THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO EUROPEAN INVESTMENT BANK SUPRANATIONAL 2 BILLION FRENCH FRANCS OF 6 3/4 EUROBONDS DUE MAY 14 1998 AT FIXED REOFFER PRICE 9899 VIA CREDIT COMMERCIAL DE FRANCE YIELD 702 AT REOFFER PRICE A MARGIN OF ABOUT 10 BASIS POINTS ABOVE THE TREASURY'S 8 NOTE DUE MAY 1998 FEES 1/4 BRITISH LAND CO UK 200 MILLION OF 9 7/8 SEMIANNUAL MORTGAGE DEBENTURE BONDS DUE MARCH 31 2028 AT ISSUE PRICE 99403 VIA SG WARBURG SECURITIES LTD YIELD AT ISSUE PRICE 993 SEMIANNUAL SPREAD 90 BASIS POINTS ABOVE 8 3/4 GILT DUE 2017 FEES NOT DISCLOSED REPUBLIC OF ICELAND SOVEREIGN 100 MILLION OF 8 3/4 EUROBONDS DUE MAY 12 2003 AT ISSUE PRICE 100 3/8 VIA JP MORGAN SECURITIES LTD REOFFERED AT 98 3/4 TO YIELD 894 ANNUAL SPREAD 90 BASIS POINTS ABOVE THE 8 UK GILT DUE 2003 FEES 2 PENINSULAR & ORIENTAL STEAM NAVIGATION CO UK 150 MILLION OF 7 1/4 SEMIANNUAL CONVERTIBLE EUROBONDS DUE MAY 19 2003 AT ISSUE PRICE PAR VIA UBS LTD CONVERTIBLE INTO P&O DEFERRED SHARES FROM JUNE 29 1993 TO MAY 9 2003 AT CONVERSION PRICE 685 PENCE A SHARE 219 PREMIUM ABOVE WEDNESDAY'S CLOSING SHARE PRICE OF 562 FEES 2 1/2 OESTERREICHISCHE KONTROLLBANK AG AUSTRIA 300 MILLION MARKS OF 3 EUROBONDS WITH CURRENCY WARRANTS ATTACHED DUE MAY 10 2000 AT ISSUE PRICE 1009 VIA JP MORGAN GMBH GUARANTOR REPUBLIC OF AUSTRIA EACH 5000 MARK NOTE HAS FIVE DEUTSCHE MARK CALL/STERLING PUT WARRANTS ATTACHED ALLOWING HOLDERS TO BUY IN NOVEMBER 1993 6000 MARKS AT AN EXCHANGE RATE TO BE FIXED ON MAY 7 FEES 2 1/4 RABOBANK NEDERLAND NETHERLANDS 150 BILLION LIRE OF 106 EUROBONDS DUE MAY 14 1998 AT ISSUE PRICE 101525 VIA BANCO DI ROMA REOFFERED AT 999 TO YIELD 10626 FEES 1 7/8 GUANGDONG INTERNATIONAL TRUST & INVESTMENT CORP CHINA 150 MILLION OF FLOATING RATE EURONOTES DUE MAY 1998 AT ISSUE AND FIXED REOFFER PRICE 999 VIA UBS LTD INTEREST FLOATS AT 55 BASIS POINTS ABOVE THE SIXMONTH LONDON INTERBANK OFFERED RATE FOR US DOLLARS FEES 03 BANCO DO NORDESTE DO BRASIL SA BRAZIL 100 MILLION OF 10 3/8 SEMIANNUAL EUROBONDS DUE NOV 6 1995 AT FIXED REOFFER PRICE 998 VIA CREDIT SUISSE FIRST BOSTON LTD YIELD 650 BASIS POINTS ABOVE US TREASURY YIELD CURVE AT THE REOFFER PRICE FEES 1 1/4 BAYERISCHE HYPOTHEKEN UND WECHSEL BANK AG GERMANY 100 MILLION AUSTRALIAN DOLLARS OF 6 3/4 EUROBONDS DUE JUNE 18 1997 AT ISSUE PRICE 10143 VIA BARCLAYS DE ZOETE WEDD SECURITIES INC YIELD 684 ANNUAL AT COMANAGERS' BREAKEVEN PRICE FEES 1 3/4 MITSUBISHI CORPORATE FINANCE PLC JAPAN 30 BILLION YEN OF 4 1/2 EUROBONDS DUE AUG 27 1997 AT ISSUE AND FIXED REOFFER PRICE PAR VIA MORGAN STANLEY INTERNATIONAL YIELD AT REOFFER PRICE PAR FEES 1/4 REPUBLIC OF IRELAND SOVEREIGN 100 MILLION SWISS FRANCS OF 4 3/4 PRIVATELY PLACED NOTES DUE JUNE 2 1997 AT ISSUE PRICE 101 1/2 VIA SWISS BANK CORP YIELD 471 AT 100 1/8 BREAKEVEN PRICE FOR COMANAGING BANKS FEES 1 5/8 UNION FEDERAL SAVINGS BANK OF INDIANAPOLIS 1331 MILLION OF AUTOMOBILE ASSETBACKED CERTIFICATES PRICED AS 4525 AT 99 30/32 TO YIELD 4496 ACCORDING TO MCM CORPORATEWATCH PRICING OF THE CERTIFICATES WITH A 1962YEAR AVERAGE LIFE WAS AT A SPREAD OF 70 BASIS POINTS ABOVE THE WHENISSUED TREASURY TWOYEAR NOTE PRUDENTIAL SECURITIES INC WAS SOLE MANAGER THE CERTIFICATES WERE RATED TRIPLEA BY S&P CREDIT SUPPORT INCLUDES AN 11 LETTEROFCREDIT PROVIDED BY STATE STREET BANK & TRUST AND A CASH COLLATERAL ACCOUNT FEDERAL NATIONAL MORTGAGE ASSOCIATION 520 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 199380 USES 300 MILLION OF INTERESTONLY SECURITIES FROM STRIPS TRUST 218 AND 220 MILLION OF PRINCIPLEONLY SECURITIES FROM STRIPS TRUST 218 AS COLLATERAL STRIPS TRUST 218 IN TURN IS BACKED BY FANNIE MAE'S 7 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 81 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2975 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY NOMURA SECURITIES THE OFFERING SERIES 199379 IS BACKED BY FANNIE MAE 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7625 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2975 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 358 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 199382 IS BACKED BY FANNIE MAE 7 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 81 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2975 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 288 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 199381 IS BACKED BY FANNIE MAE SEVENYEAR 6 1/2 BALLOON MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7125 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 675 YEARS 9304230008 930423 SPENDING CONSUMERS' ECONOMIC CONFIDENCE WANES LEADING RETAILERS TO REDUCE EXPECTATIONS BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL SUSAN JONES USUALLY BUYS A CAR IN MIDMARCH BUT NOT THIS YEAR THE 43YEAROLD HOSPITAL ADMINISTRATOR SAYS SHE MAY FACE A PAY CUT LATER IN THE YEAR I'M WORRIED SAYS THE ARDMORE OKLA RESIDENT SO I'M HOLDING OFF UNTIL THIS SUMMER LIKE MS JONES A GROWING NUMBER OF CONSUMERS HAVE TURNED WARY AGAIN ABOUT THE ECONOMY'S PROSPECTS GONE IS LAST FALL'S POSTELECTION EUPHORIA WHICH HELPED PROPEL CHRISTMAS SALES TO THE BEST SHOWING IN YEARS THAT OPTIMISM HAS BEEN REPLACED BY LINGERING CONCERNS OVER JOB SECURITY AND TAX INCREASES SOME TANGIBLE MEASURES OF SPENDING POWER ALSO SIGNAL POSSIBLE TROUBLES FOR MANY TAXPAYERS THIS YEAR'S REFUNDS FROM UNCLE SAM ARE SMALLER REFLECTING THE GOVERNMENT'S MOVE LAST YEAR TO REDUCE THE AMOUNT IT WITHHOLDS FROM PAYCHECKS THAT MAY HAVE HELPED SPUR 1992 CONSUMER SPENDING BUT THE THINNER REFUND CHECKS BODE POORLY FOR SALES OF SUCH BIGTICKET ITEMS AS CARS BOATS AND APPLIANCES CONSUMERS OFTEN USE THEIR REFUND CHECKS AS DOWN PAYMENTS FOR SUCH ITEMS MARCH MARKED THE THIRD CONSECUTIVE MONTH IN WHICH RETAIL SALES FAILED TO IMPROVE SALES OF CARS AND LIGHT TRUCKS WHICH RACED TO AN 85 INCREASE IN THE 1992 FOURTH QUARTER SLOWED TO A 65 GAIN IN THE FIRST PERIOD SIMILARLY THE WIDELY FOLLOWED UNIVERSITY OF MICHIGAN INDEX OF CONSUMER EXPECTATIONS DECLINED IN EARLY APRIL WHAT THIS MEANS FOR THE NATION'S PURVEYORS OF GOODS AND SERVICES IS THAT THE HEADY CONFIDENCE OF LATE FALL AND EARLY WINTER WHEN MANY PREDICTED DOUBLEDIGIT SALES GAINS FOR 1993 HAS EVAPORATED PROVIDERS OF ALL KINDS OF MERCHANDISE AND SERVICES FROM SLACKS AND SKIRTS TO VACATION COTTAGES AND LEISURE BOATS ARE SCALING BACK THEIR EXPECTATIONS FOR THIS YEAR WE'RE LESS OPTIMISTIC FOR THE YEAR NOW THAN WE WERE SIX MONTHS AGO SAYS KENNETH A MACKE CHAIRMAN OF DAYTON HUDSON CORP WHICH OPERATES MODERATEPRICE DISCOUNT AND DEPARTMENT STORE CHAINS SO ARE OTHERS SENDING TREMORS FROM MAIN STREET TO WALL STREET LAST WEEK RETAILSTOCK PRICES FELL SHARPLY WHEN INDUSTRY LEADER WALMART STORES INC THE BIGGEST RETAILER IN MANY COMMUNITIES SAID IT ISN'T LIKELY TO ACHIEVE ITS TRADITIONAL DOUBLEDIGIT GROWTH IN SAME STORE SALES DAYTON HUDSON'S STOCK WAS HIT TOO CHRISTOPHER CEDERGREN AN AUTO INDUSTRY ANALYST AT AUTOPACIFIC IN THOUSAND OAKS CALIF BELIEVES CONSUMERS DON'T HAVE THE CONFIDENCE TO COMMIT TO THE PURCHASE OF A NEW CAR SUCH A PURCHASE HE NOTES OFTEN REPRESENTS THREE TO FIVE YEARS OF MONTHLY PAYMENTS A COMMITMENT THAT REQUIRES A GREAT DEAL OF CONFIDENCE ABOUT ONE'S PERSONAL SITUATION HE RECENTLY REDUCED HIS FORECAST FOR 1993 US CARS SALES BY 200000 TO 86 MILLION CAR DEALERS ADD THAT CONSUMERS' FEAR OF TAKING ON LARGE AMOUNTS OF DEBT IS PART OF WHAT IS FUELING THE SURGE IN SHORTER TERM CAR LEASING OF COURSE THE MALAISE ISN'T EVERYWHERE MANY CONSUMERS AND BUSINESSES ARE DOING JUST FINE WHIRLPOOL CORP THE BENTON HARBOR MICH APPLIANCE MAKER ENVISIONS 1993 SALES OF CORE HOUSEHOLD APPLIANCES RANGES REFRIGERATORS AND LAUNDRY EQUIPMENT WILL SURPASS THE 1987 HIGH OF 28 MILLION UNITS WAYNE PA EXECUTIVE STUART SUSKIND IS DOING HIS PART TO BUOY CONSUMER SPENDING HE JUST BOUGHT A SECOND VIDEOCASSETTE RECORDER AND HE HAS BEEN GOING TO SOME VERY GOOD RESTAURANTS HE SAYS THE DISCRETIONARY INCOME I HAVE I'M SPENDING WHAT'S MORE THE OVERALL ECONOMY IS GROWING AND BENEFITS FROM THAT CAN BE EXPECTED TO FLOW THROUGH TO CONSUMERS EVENTUALLY EVEN IF THEY AREN'T NOW MEANWHILE WHATEVER HAPPENED TO ALL THAT DISPOSABLE INCOME CONSUMERS WERE SUPPOSED TO BE GETTING FROM MORTGAGE REFINANCING APPARENTLY LOWER INTEREST RATES ARE A DOUBLEEDGED SWORD EXPLAINS CARL STEIDTMANN AN ECONOMIST WITH MANAGEMENT HORIZONS THE RETAIL CONSULTING DIVISION OF PRICE WATERHOUSE LOWER INTEREST RATES HELP MORTGAGEPAYING WAGE EARNERS BUT THEY REDUCE THE DISPOSABLE INCOME OF RETIREES AND OTHERS WHO DEPEND ON INVESTMENT INCOME OVERALL HE SAYS FALLING INTEREST RATES ARE A MIXED PICTURE MR STEIDTMANN ADDS THAT US HOUSEHOLDS AS A WHOLE SAVE MORE THAN THEY BORROW INDEED MANY CONSUMERS FIND THEMSELVES IN A SITUATION SIMILAR TO JOHN O'BRIEN A 51YEAROLD UTILITY COMPANY EXECUTIVE MR O'BRIEN OF PEEKSKILL NY PAID OFF HIS MORTGAGE YEARS AGO AND SAYS HE NOW MUST SAVE MORE FOR HIS APPROACHING RETIREMENT BECAUSE LOWER INTEREST RATES REDUCE HIS INVESTMENT RETURNS MR O'BRIEN SAYS THAT WITH TAX INCREASES IN THE WIND HE ISN'T IN A SPENDING MOOD HE IS DELAYING BUYING A NEW CAR AND SUCH AMENITIES AS A GAS GRILL UNTIL THE ECONOMIC PICTURE CLEARS I'M HOLDING BACK BECAUSE I DON'T KNOW WHAT TAXES I'M GOING TO BE PAYING HE SAYS IF CONSUMERS TIGHTEN THEIR PURSE STRINGS AGAIN DEPARTMENT STORES IN PARTICULAR COULD SUFFER THEY HAVE BEEN PUMMELED IN RECENT YEARS BY OFFPRICE STORES AND OUTLETS BUT MANY HAVE BEEN OPTIMISTIC ABOUT SHOPPERS RETURNING TO THEIR STORES CONSIDER MS JONES THE HOSPITAL ADMINISTRATOR RECENTLY SHE CHANGED HER SHOPPING ITINERARY FOR A TRIP TO DALLAS ONE OF SEVERAL SHE TAKES EACH YEAR INSTEAD OF HEADING FOR THE UPSCALE GALLERIA MALL THERE SHE INTENDS TO HIT THE FACTORY OUTLET STRIP ON THE OTHER SIDE OF TOWN FOR COMPANIES LIKE FEDERATED DEPARTMENT STORES SUCH DECISIONS CAN AFFECT THOUSANDS OF JOBS THE DEPARTMENT STORE CHAIN WHICH USUALLY HIRES SOME 20000 EXTRA PEOPLE DURING THE CHRISTMAS HOLIDAY SAYS IT LAID THEM OFF MORE QUICKLY AND KEPT FEWER OF THEM THAN IT HAD HOPED AFTER THE HOLIDAYS BECAUSE BUSINESS WASN'T AS STRONG AS EXPECTED THAT PATTERN OF WEAK JOB GROWTH WILL ONLY GET WORSE IF THINGS CONTINUE BUMPING ALONG SAYS ALLEN QUESTROM FEDERATED'S CHAIRMAN WE WILL HAVE TO LAY OFF PEOPLE IF SALES GO BELOW OUR TREND THE VACATIONHOME RENTAL BUSINESS LOOKING FOR A STRONG PICKUP AFTER SEVERAL WEAK YEARS ISN'T GETTING A BIG BOOST THESE DAYS EITHER VACATIONERS MORE AND MORE PRESSED FOR TIME AND FUNDS ARE RENTING FOR WEEKS INSTEAD OF MONTHS SAYS JUDY FEDEROWICZ MANAGER OF RENTAL PROPERTIES FOR LANDMARKS REAL ESTATE ON MARTHA'S VINEYARD MASS PRICES FOR RENTALS THIS YEAR WHICH START AT AROUND 3000 A WEEK FOR WATERFRONT PROPERTIES HAVEN'T BUDGED FROM LAST YEAR THERE IS A REAL AWARENESS THAT IF IT IS IMPORTANT TO THEM TO RENT THEIR PROPERTIES THEN LANDLORDS HAVE TO BE CAREFUL ABOUT INCREASING PRICES MS FEDEROWICZ SAYS A FEW SUCH PROPERTY OWNERS DID RAISE PRICES OVER THE WINTER BUT MANY OF THEM ARE NOW COMING BACK DOWN AS VACATIONERS HAVE FLED TO LESS EXPENSIVE PROPERTIES INDEED TRADING DOWN THE THEME OF RETAILING IN THE PAST RECESSION SEEMS TO BE BACK IN FASHION SO SAYS DANIEL COTTER PRESIDENT OF COTTER & CO THE DEALEROWNED NETWORK OF TRUE VALUE HARDWARE STORES SALES IN TRUE VALUE STORES FELL 4 IN MARCH WHICH THE COMPANY IN LARGE PART ATTRIBUTES TO BAD WEATHER DURING THE MONTH STILL WHERE THE WEATHER IS BETTER AND CONSUMERS HAVE BEEN SHOPPING THEY ARE OPTING FOR LOWER PRICED MERCHANDISE MR COTTER SAYS IF SOMEONE IS MAKING A DECISION BETWEEN BUYING AN 800 RIDING MOWER AND A 200 WALKBEHIND MOWER THEY'RE BUYING THE 200 MOWER CONSUMER WATCHERS SAY IT WILL TAKE SUBSTANTIAL IMPROVEMENT IN THE JOBS PICTURE FOR CONSUMERS TO RETURN TO THE VIGOROUS BUYING HABITS THEY DISPLAYED OVER THE CHRISTMAS HOLIDAYS AND THAT MAY NOT HAPPEN AGAIN UNTIL THE FOURTH QUARTER SAYS OWEN SHAPIRO SENIOR ANALYST AT THE LEO J SHAPIRO & ASSOCIATES CONSUMER RESEARCH FIRM IN CHICAGO TODAY'S CONSUMER DREARINESS MR SHAPIRO SAYS COULD LEAD TO AN EXCELLENT CHRISTMAS 9304230007 930423 TECHNOLOGY & HEALTH AMGEN EARNINGS INCREASED BY 41 IN FIRST QUARTER BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL AMGEN INC'S FIRSTQUARTER NET INCOME CLIMBED 41 TO 893 MILLION OR 61 CENTS A SHARE AFTER AN 87 MILLION GAIN FOR A TAXRELATED ACCOUNTING CHANGE EXCLUDING THE ONETIME BENEFIT PROFIT WAS 55 CENTS A SHARE A FEW CENTS ABOVE THE CONSENSUS OF ANALYSTS' FORECASTS AFTER AMGEN GUIDED THOSE ESTIMATES SHARPLY DOWNWARD IN FEBRUARY ITS SHARES PLUNGED ON FEARS OF A PERMANENT SLOWDOWN IN THE SALES GROWTH RATE OF THE COMPANY'S NEUPOGEN CANCER DRUG IN LAST YEAR'S FIRST QUARTER THE THOUSAND OAKS CALIF BIOTECHNOLOGY CONCERN POSTED NET OF 632 MILLION OR 43 CENTS A SHARE REVENUE IN THE LATEST QUARTER CLIMBED 41 TO 3102 MILLION SALES OF NEUPOGEN A WHITE BLOODCELL STIMULANT USED IN CHEMOTHERAPY TREATMENT HAVE RETURNED TO LEVELS CONSISTENT WITH OUR LONGTERM EXPECTATIONS SAID LOWELL E SEARS SENIOR VICE PRESIDENT AND ACTING CHIEF FINANCIAL OFFICER HE DECLINED TO GIVE SPECIFICS ABOUT THOSE INTERNAL EXPECTATIONS ANALYSTS TENDED TO ACCEPT AMGEN'S EXPLANATION THAT NEUPOGEN SALES STUMBLED BRIEFLY BECAUSE OF THE EFFECT OF SLACK DEMAND DURING THE DECEMBER HOLIDAY SEASON ON ORDERING BUT WALL STREET PROFESSIONALS EXPRESSED SOME FRUSTRATION SAYING THEY WISHED FOR MORE INFORMATION FROM THE COMPANY ABOUT NEUPOGEN SALES PROSPECTS IT LOOKS VERY GOOD TEENA LERNER AN ANALYST AT LEHMAN BROTHERS SAID OF THE QUARTER ONE BEGINS TO FEEL BETTER AGREED COWEN & CO ANALYST DAVID K STONE BUT WHAT GIVES US SOME RESERVATION IS THAT WHILE MANAGEMENT SAID REPEATEDLY THAT SALES ARE ON TREND MANAGEMENT HAD NO GUIDANCE ON THE TREND WE KNOW THAT SALES HAVE RESUMED GOING UP BUT HOW FAST WORLDWIDE NEUPOGEN SALES SPURTED 58 TO 1585 MILLION IN THE YEAREARLIER QUARTER MORE IMPORTANTLY DOMESTIC SALES FELL LESS THAN EXPECTED COMPARED WITH THE PRECEDING QUARTER US SALES SLIPPED 4 TO 1192 MILLION IN THE 1992 FOURTH QUARTER THE INDICATION AMGEN HAD GIVEN IN FEBRUARY WAS THAT FIRSTQUARTER US SALES WOULD COME IN AT 105 MS LERNER SAID SALES OF AMGEN'S OTHER DRUG EPOGEN A RED BLOODCELL STIMULANT USED TO TREAT KIDNEY DIALYSIS PATIENTS SHOWED A MODERATE INCREASE TO 137 MILLION WE BELIEVE WE HAVE ACHIEVED CLOSE TO FULL PENETRATION OF THE DIALYSIS MARKET AND WE DO NOT ANTICIPATE FURTHER INCREASES IN DOSE THE COMPANY SAID AMGEN SAID IT SPENT ABOUT 60 MILLION IN THE QUARTER TO REPURCHASE 12 MILLION OF ITS SHARES ABOUT 100 MILLION IN ADDITIONAL REPURCHASES HAVE BEEN AUTHORIZED MR SEARS SAID WE WILL BE USING THAT AND THEN WILL EVALUATE AND MAKE RECOMMENDATIONS FOR FUTURE REPURCHASES AMGEN HAS ABOUT 136 MILLION SHARES OUTSTANDING THE QUARTERLY RESULTS WERE REPORTED AFTER THE CLOSE OF MARKETS AMGEN SHARES WERE UNCHANGED YESTERDAY AT 3925 IN NATIONAL OVERTHECOUNTER TRADING 9304230006 930423 MERRILL TO PAY UP TO 30 MILLION TO INVESTORS TO SETTLE SEC'S CASE BY MICHAEL SICONOLFI AND JONATHAN M MOSES STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK MERRILL LYNCH & CO WILL PAY AS MUCH AS 30 MILLION TO TENS OF THOUSANDS OF INVESTORS TO SETTLE SECURITIES AND EXCHANGE COMMISSION CHARGES THAT IT MISPRICED UNIT INVESTMENT TRUSTS BETWEEN 1972 AND 1987 IN AN ADMINISTRATIVE ORDER RELEASED YESTERDAY THE SEC ACCUSED MERRILL OF PAYING TOO LITTLE TO INVESTORS WHO BOUGHT UNITS IN 570 MERRILLSPONSORED UNIT INVESTMENT TRUSTS IN SECONDARY TRADING MERRILL THE NATION'S BIGGEST BROKERAGE FIRM AGREED TO SETTLE THE SEC ORDER WITHOUT ADMITTING OR DENYING WRONGDOING THE SEC CASE IS THE FIRST TIME THE AGENCY HAS BROUGHT AN ACTION INVOLVING UNIT TRUSTS ACCORDING TO RICHARD H WALKER THE NEW YORK REGIONAL ADMINISTRATOR OF THE SEC UNIT INVESTMENT TRUSTS ARE UNMANAGED PORTFOLIOS WITH A FIXED HOLDING OF SECURITIES OFTEN MUNICIPAL BONDS BY CONTRAST THE PORTFOLIOS OF OPENEND MUTUAL FUNDS TYPICALLY ARE ACTIVELY MANAGED AND CHANGE IN SIZE UNIT TRUSTS ARE DIVIDED INTO UNITS TYPICALLY VALUED INITIALLY AT 1000 MERRILL SAID IT WILL PAY A TOTAL OF 10 MILLION TO 15 MILLION TO THOSE INVESTORS WHO BOUGHT THE UNIT TRUSTS BETWEEN 1972 AND 1987 WHEN INTEREST IS ADDED THE AMOUNT COULD BE AS MUCH AS 30 MILLION PEOPLE FAMILIAR WITH THE MATTER SAID MERRILL SAYS IT CREATED THE FIRST UNIT INVESTMENT TRUST AND IS THE BIGGEST PLAYER IN THE 112 BILLION UNITTRUST MARKET SINCE 1972 MERRILL HAS BEEN THE LEAD SPONSOR ON MORE THAN 2500 UNIT TRUSTS WITH A FACE VALUE OF ABOUT 88 BILLION ROUGHLY 45 BILLION OF WHICH REMAIN OUTSTANDING IN A STATEMENT MERRILL SAID THE INADVERTENT ERROR WHICH WAS CORRECTED IN 1987 INVOLVED THE METHOD USED TO CALCULATE ONE COMPONENT OF ACCRUED INTEREST REPRESENTING A VERY SMALL PART OF THE TOTAL UNIT VALUE BECAUSE OF THE ERROR MERRILL UNDERPAID SECONDARY MARKET SELLERS AND SIMILARLY UNDERCHARGED SECONDARY MARKET BUYERS OF THE AFFECTED UNIT TRUSTS IN DECEMBER 1987 MERRILL MADE A SPECIAL CASH DISTRIBUTION OF ABOUT 50 MILLION TO HUNDREDS OF THOUSANDS OF UNITTRUST INVESTORS TO CORRECT A SIMILAR MISCALCULATION IN ACCRUED INTEREST INVOLVING THE SAME UNIT TRUSTS BUT UNLIKE THE MONEY PAID FROM YESTERDAY'S SEC ORDER THE 1987 PAYMENTS CAME FROM CASH HELD IN THE TRUSTS WHICH HADN'T BEEN DISTRIBUTED THE SEC ACTION DEMONSTRATES THAT THE COMMISSION EVEN WHERE THERE'S NO FRAUD WILL GET THE FULL RETURN THAT INVESTORS WERE PROMISED SAID MR WALKER THE SEC REGIONAL ADMINISTRATOR THE MISCALCULATION WAS BIGGER FOR OLDER UNIT TRUSTS THAT'S BECAUSE THE OLDER TRUSTS HAD MORE BONDS THAT WERE CALLED OR REDEEMED THE MISCALCULATION DEVELOPED IN ONLY 570 OF THE 3000 UNIT TRUSTS THAT MERRILL HAS SOLD BECAUSE SOME UNIT TRUSTS DIDN'T HAVE BONDS THAT WERE CALLED OR REDEEMED OTHERS DIDN'T HAVE A MONTHLY PAYMENT SCHEDULE THE AVERAGE MISCALCULATION WAS 384 PER 1000 UNIT HOLDERS OF ONE UNIT TRUST RECEIVED ABOUT 20 A UNIT LESS THAN THEY SHOULD HAVE THE SEC SAID THE PRICING ERROR OCCURRED ONLY IN SECONDARY TRADING AND NEVER AFFECTED THE INITIAL OFFERING OF ANY UNIT TRUST MERRILL SAID THE PRICING METHOD THAT CAUSED THE ERROR HASN'T BEEN USED SINCE 1987 MERRILL SAID AND NO OTHER INVESTMENT PRODUCTS OFFERED BY MERRILL WERE AFFECTED AS PART OF THE SETTLEMENT MERRILL HAS RETAINED ACCOUNTING FIRM PRICE WATERHOUSE TO REVIEW ITS PRICING SYSTEMS AND PROCEDURES FOR UNITTRUST TRANSACTIONS MERRILL'S REIMBURSEMENT PROGRAM IS EXPECTED TO BE COMPLETED WITHIN 15 MONTHS YESTERDAY'S PAYMENT WON'T MATERIALLY AFFECT MERRILL'S BOTTOM LINE MERRILL TOOK RESERVES OF ABOUT 30 MILLION IN 1992 FOR THE MISPRICING PROBLEM PEOPLE FAMILIAR WITH THE MATTER SAID STILL MERRILL'S STOCK WHICH RECENTLY HIT A 52WEEK HIGH FELL 2625 YESTERDAY TO CLOSE AT 71375 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9304230005 930423 PSA PEUGEOT STOCK RISES ON REPORT OF 1992 PROFIT SPECIAL TO THE WALL STREET JOURNAL PARIS SHARES OF FRANCE'S PSA PEUGEOT CITROEN SA ROSE SMARTLY AFTER THE CAR GROUP REPORTED A BETTERTHANEXPECTED 1992 NET PROFIT OF 337 BILLION FRANCS 6232 MILLION DOWN ALMOST 40 FROM 553 BILLION IN 1991 MARKET ANALYSTS HAD BEEN ANTICIPATING A 1993 PROFIT OF BETWEEN 28 BILLION AND 32 BILLION FRANCS BUT ANALYSTS SAY THEY ARE REVISING DOWNWARD THIS YEAR'S EARNINGS PROJECTIONS ON THE BASIS OF THE GLOOMY OUTLOOK FOR THE EUROPEAN CAR MARKET IN 1993 AND SOME SAY THEY NOW EXPECT PEUGEOT TO POST A LOSS IN TRADING YESTERDAY PEUGEOT'S STOCK CLIMBED 15 FRANCS TO AN INTRADAY HIGH OF 552 FRANCS BEFORE FALLING BACK TO 542 AT THE CLOSE UP FIVE FRANCS ON THE DAY TRADERS SAID THE GOOD NEWS ON THE PROFIT FRONT WAS OFFSET BY THE COMPANY'S DECISION TO CUT ITS NET DIVIDEND TO 10 FRANCS FROM 13 FRANCS LAST YEAR AND FROM 16 FRANCS IN 1991 PEUGEOT'S SWEET AND SOUR ANNOUNCEMENT ONE LONDON ANALYST SAID IS LIKE A FLASHBACK TO THIS TIME LAST YEAR WHEN THE COMPANY ALSO EXCEEDED MARKET EXPECTATIONS ON THE EARNINGS FRONT BUT AT THE SAME TIME CUT THE PAYOUT TO SHAREHOLDERS MR CALVET ALSO DENIED PERSISTENT REPORTS IN THE ITALIAN PRESS OF AN EVENTUAL CROSSSHAREHOLDING LINK BETWEEN PEUGEOT AND FIAT SPA THE TWO GROUPS ALREADY COOPERATE INDUSTRIALLY IN SEVERAL AREAS AND HAVE SOME JOINT PURCHASING ACTIVITIES HE REITERATED HIS VIEW THAT THE BIGVOLUME CAR MAKERS IN EUROPE THAT PRODUCE SOME TWO MILLION CARS ANNUALLY HAVE SHOWN THEY ARE CAPABLE OF SURVIVING AND GROWING AND THAT LINKUPS BETWEEN SUCH GROUPS WOULD A MISTAKE 9304230003 930423 KEMPER SAYS IT IS PLANNING TO SELL UNIT THAT MANAGES NOLOAD MUTUAL FUNDS BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL KEMPER CORP PLANS TO SELL A MUTUAL FUND MANAGEMENT SUBSIDIARY THAT HAS LOST ASSETS DURING THE CURRENT BOOM IN MUTUAL FUNDS ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER KEMPER HAS AGREED TO SELL SELECTED FINANCIAL SERVICES WHICH MANAGES A FAMILY OF SIX NOLOAD MUTUAL FUNDS TO CONCORD HOLDING CORP THE PEOPLE SAID THE SELECTED FUNDS HAD 685 MILLON IN ASSETS AT THE END OF 1992 CONCORD IS A CLOSELY HELD NEW YORK FIRM THAT ADMINISTERS AND DISTRIBUTES 30 BILLION IN MUTUAL FUNDS FOR BANKS CONCORD DOESN'T CURRENTLY MANAGE ANY MUTUAL FUNDS EXECUTIVES AT CONCORD AND SELECTED FINANCIAL SERVICES DIDN'T RETURN PHONE CALLS SEEKING COMMENT A SPOKESWOMAN FOR KEMPER A CHICAGOBASED INSURANCE AND FINANCIAL SERVICES FIRM DECLINED TO COMMENT AS A MATTER OF POLICY KEMPER'S 28 BILLION OF STOCK AND BOND LOAD FUNDS WHICH ARE SOLD THROUGH BROKERS AND BANKS AND LEVY A SALES CHARGE WON'T BE AFFECTED BY THE SALE OF SELECTED FINANCIAL THE SELECTED NOLOAD FUNDS WHICH DON'T CHARGE SALES COMMISSIONS WERE UNPOPULAR WITH THE BROKERS THAT SOLD THE OTHER KEMPER FUNDS THE SELECTED FUNDS HAVE SHRUNK IN THE PAST YEAR AS SOME SHAREHOLDERS REDEEMED THEIR HOLDINGS THE TRIGGER FOR THE OUTFLOW OF SHAREHOLDER MONEY WAS THE DEPARTURE EARLY LAST YEAR OF DONALD YACKTMAN MANAGER OF THE FLAGSHIP SELECTED AMERICAN SHARES FUND THE ASSETS OF SELECTED AMERICAN SHARES DROPPED TO 582 MILLION AT THE END OF 1992 FROM 706 MILLION AT THE END OF 1991 DESPITE GAINS IN THE YEAR IN THE FUND'S INVESTMENTS IN MR YACKTMAN'S 10 YEARS AS MANAGER OF SELECTED AMERICAN SHARES HE CHANGED IT FROM A POORLY PERFORMING BALANCED FUND INVESTING IN BOTH STOCKS AND BONDS INTO ONE OF THE TOP STOCK FUNDS IN THE COUNTRY HE LEFT LAST YEAR AFTER A DISPUTE WITH THE NEW MANAGEMENT OF SELECTED FINANCIAL SERVICES AND MR YACKTMAN'S FAILED BID TO TAKE OVER MANAGEMENT OF THE FUND FROM SELECTED FINANCIAL MR YACKTMAN SUBSEQUENTLY SET UP HIS OWN MANAGEMENT COMPANY WHICH NOW MANAGES SOME 300 MILLION IN ASSETS INCLUDING 100 MILLION IN A NEW STOCK FUND KEMPER HAS BEEN SELLING BUSINESSES IT NO LONGER CONSIDERS STRATEGIC IN RECENT YEARS KEMPER HAS HAD DIFFICULTY DIGESTING ITS ACQUISITIONS OF SEVERAL REGIONAL BROKERAGE FIRMS DESPITE BOOM TIMES FOR MOST BROKERAGE FIRMS KEMPER REPORTED A LOSS OF 203 MILLION OR 416 A SHARE IN 1992 THE 1992 LOSS INCLUDED 221 MILLION IN AFTERTAX CHARGES TO COVER PROVISIONS FOR LOSSES IN KEMPER'S REALESTATE PORTFOLIO AS WELL AS A NET 161 MILLION CHARGE FOR AN ACCOUNTING CHANGE A CHANGE IN OWNERSHIP OF SELECTED FINANCIAL SERVICES WOULD REQUIRE THE APPROVAL OF THE DIRECTORS AND SHAREHOLDERS OF THE SELECTED FUNDS 9304230002 930423 LAW HIGH COURT ALTERS WAY OF DISCLOSING PRETRIAL DATA BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US SUPREME COURT PROPOSED TO STREAMLINE THE MANNER IN WHICH PARTIES TO CIVIL LAWSUITS EXCHANGE PRETRIAL INFORMATION DESPITE STRONG OPPOSITION FROM MANY LAWYERS AND SOME JUSTICES THE COURT PRESCRIBED THAT BEGINNING DEC 1 PLAINTIFFS AND DEFENDANTS IN FEDERAL COURT WILL BE REQUIRED TO DISCLOSE UPFRONT TO ONE ANOTHER CERTAIN CORE INFORMATION ABOUT THEIR CASES THE INFORMATION WOULD INCLUDE THE IDENTIFICATION OF IMPORTANT DOCUMENTS AND WITNESSES AS WELL AS INFORMATION ABOUT DAMAGES AND INSURANCE THE PROPOSAL WAS ONE OF A BEVY OF RULE CHANGES THAT THE COURT DECREED YESTERDAY INCLUDING A WATERING DOWN OF CONTROVERSIAL MEASURES THAT HAVE BEEN USED TO PENALIZE LAWYERS FOR BRINGING FRIVOLOUS LITIGATION ALL THE CHANGES BECOME EFFECTIVE UNLESS CONGRESS INTERVENES THE CHANGES IN THE SOCALLED DISCOVERY PROVISIONS OF WHAT IS KNOWN AS RULE 26 OF THE FEDERAL RULES OF CIVIL PROCEDURE HAD BEEN ENDORSED FOR YEARS BY MANY ACADEMICS AND OTHER LEGAL REFORM GROUPS AS A FAIRLY STRAIGHTFORWARD WAY TO CURB RISING LITIGATION COSTS AND DELAYS BUT CRITICS HAVE ARGUED THAT THE APPROACH IS ANATHEMA TO THE ADVERSARIAL SYSTEM OF JUSTICE IN THIS COUNTRY AND WOULD SPAWN EVEN FURTHER LITIGATION OVER COMPLIANCE IN A DISSENTING OPINION TO THE COURT'S ADOPTION OF THE NEW RULES YESTERDAY JUSTICE ANTONIN SCALIA WROTE THE PROPOSED RADICAL REFORMS TO THE DISCOVERY PROCESS ARE POTENTIALLY DISASTROUS AND CERTAINLY PREMATURE JUSTICES CLARENCE THOMAS AND DAVID SOUTER JOINED THE DISSENT 9304230001 930423 PEROT TELLS SENATE PANEL NAFTA PACT WILL COST AMERICANS THREE MILLION JOBS BY GREGORY N RACZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ROSS PEROT THE MOST PROMINENT CRITIC OF A FREETRADE AGREEMENT WITH MEXICO AND CANADA STEPPED UP HIS ATTACK YESTERDAY RAISING NEW HURDLES FOR THE PACT'S PROPONENTS DURING THE PRESIDENTIAL CAMPAIGN MR PEROT PREDICTED THAT THE NORTH AMERICAN FREE TRADE AGREEMENT WOULD RESULT IN A GIANT SUCKING SOUND TO THE SOUTH DRAWING OFF JOBS AND HOPE YESTERDAY THE TEXAS BUSINESSMAN TOLD THE SENATE BANKING COMMITTEE THAT THE ACCORD WOULD COST AMERICA THREE MILLION JOBS AND PUT EVEN MORE JOBS AT RISK HE ILLUSTRATED THOSE CONTENTIONS WITH MEXICAN PROMOTIONAL BROCHURES TOUTING LOW WAGES IN THAT COUNTRY WHEN THE US IS TOO EXPENSIVE AND THE FAR EAST TOO FAR YES YOU CAN IN YUCATAN' SAID ONE BROCHURE THE FIRST RULE OF WAR IS DON'T SHOOT YOURSELF MR PEROT TOLD THE LAWMAKERS OUR TRADE AGREEMENTS INCLUDING THIS ONE VIOLATE THIS RULE ANALYSTS DISAGREE OVER HOW MANY JOBS IF ANY WILL HEAD SOUTH AS A RESULT OF NAFTA BUT EVEN THE MOST PESSIMISTIC ESTIMATES HAVE PREDICTED A JOB LOSS OF ONLY 500000 ONE SIXTH OF MR PEROT'S ESTIMATES THE INSTITUTE FOR INTERNATIONAL ECONOMICS A FREETRADE THINK TANK ESTIMATES THAT ABOUT 200000 JOBS WILL BE CREATED IN THE US BY NAFTA IN PART BY LOCKING IN ECONOMIC REFORMS IN MEXICO TO PUT IT MILDLY PEROT IS NOT AN ECONOMIST SAID FRED BERGSTEN THE INSTITUTE'S DIRECTOR BUT MR PEROT IS A SHREWD POLITICIAN WITH A LOYAL FOLLOWING IF HE WERE TO CAMPAIGN VIGOROUSLY AGAINST THE ACCORD AND JOIN FORCES WITH THE GRASSROOTS MOVEMENTS AGAINST THE ACCORD IT WOULD DIM THE PACT'S CHANCES OF WINNING APPROVAL A NEW WALL STREET JOURNAL/NBC NEWS POLL SHOWS THAT 74 OF THOSE WHO VOTED FOR PEROT AND 65 OF ALL ADULTS BELIEVE THAT THE TREATY WILL COST THE US JOBS SEN DONALD RIEGLE D MICH THE BANKING COMMITTEE'S CHAIRMAN AND A STAUNCH NAFTA OPPONENT WAS ABLE TO USE MR PEROT'S APPEARANCE TO BOLSTER OPPOSITION TO THE PACT IN CONGRESS MEANWHILE THEA LEE A TRADE ANALYST AND ADVISER TO THE ANTINAFTA COALITION SAID THAT GRASSROOTS ORGANIZERS HAVE BEEN IN CONTACT WITH MR PEROT AND SHARE A COMMON INTEREST DURING THE PRESIDENTIAL CAMPAIGN MANY COALITION LEADERS BACKED BILL CLINTON AND REGARDED MR PEROT WITH SUSPICION SUPPORTERS OF NAFTA ARGUE THAT IT WILL HELP THE US ECONOMY BY PUTTING MORE MONEY IN THE AVERAGE MEXICAN'S WALLET THAT THEY SAY WILL CREATE A LARGER DEMAND FOR USMADE PRODUCTS BUT MR PEROT REJECTED THAT IDEA AND OFFERED TO BET SEN ROBERT BENNETT A UTAH REPUBLICAN WHO SUPPORTS THE PACT THAT NAFTA WILL TURN OUT TO BE A LOSER FOR THE US OVER 10 YEARS SEN BENNETT ACCEPTED THE CHALLENGE AND THE TWO MEN SETTLED ON A 10000 WAGER NAFTA IS ABOUT OPENING MARKETS FOR AMERICAN GOODS MR BENNETT SAID BUT MR PEROT'S ADVICE TO LAWMAKERS WAS JUST THE OPPOSITE JUST DON'T DO IT HE SAID OF THE PACT IT'S NOT IN OUR COUNTRY'S BEST INTEREST 9304220200 930421 BLOCKBUSTER'S PROFIT CLIMBED A SHARP 53 IN THE FIRST QUARTER FORT LAUDERDALE FLA BLOCKBUSTER ENTERTAINMENT CORP BENEFITING FROM GAINS IN VIDEORENTAL SALES AND FROM ITS NEW MUSIC OPERATIONS REPORTED A 53 JUMP IN FIRSTQUARTER EARNINGS THE VIDEORETAILING COMPANY SEPARATELY SAID IT WAS COMFORTABLE WITH ANALYSTS' ESTIMATES THAT SECONDQUARTER PERSHARE EARNINGS WILL INCREASE AT LEAST 24 IN LINE WITH ANALYSTS' ESTIMATES BLOCKBUSTER HAD FIRSTQUARTER NET INCOME OF 392 MILLION OR 20 CENTS A SHARE UP FROM 257 MILLION OR 15 CENTS A SHARE REVENUE ROSE 54 TO 3911 MILLION FROM 254 MILLION IN ITS FIRST FULL QUARTER OF OPERATING ITS MUSIC RETAIL BUSINESS BLOCKBUSTER SAID THE NEW OPERATION CONTRIBUTED 839 MILLION IN REVENUE OR ABOUT 20 OF TOTAL REVENUE FOR THE QUARTER THE MUSIC DIVISION ALSO GENERATED ABOUT 10 OF BLOCKBUSTER'S OPERATING PROFIT THE CORE VIDEOSTORE BUSINESS ACCOUNTED FOR THE REMAINDER WHILE SAMESTORE REVENUE ROSE A HEALTHY 68 IN THE QUARTER IN BLOCKBUSTER'S VIDEO BUSINESS THE COMPANY WON'T BEGIN DISCLOSING SAMESTORE SALES FOR THE MUSIC STORES UNTIL BLOCKBUSTER OPERATES THEM FOR A FULL YEAR BLOCKBUSTER JUMPED INTO THE MUSIC BUSINESS LAST NOVEMBER ACQUIRING SOUND WAREHOUSE AND MUSIC PLUS TWO OF THE LARGEST RECORD CHAINS IN THE COUNTRY IN THE SECOND QUARTER BLOCKBUSTER IS EXPECTED TO SHOW PERSHARE NET OF 21 CENTS TO 23 CENTS ACCORDING TO ANALYSTS' ESTIMATES THAT WOULD COMPARE WITH 17 CENTS A YEAR EARLIER WHEN NET WAS 30 MILLION IN AN INTERVIEW GREGORY K FAIRBANKS CHIEF FINANCIAL OFFICER REFUSED TO OFFER A SPECIFIC FORECAST FOR THE QUARTER BUT HE SAID WE HAVE STATED THAT OUR GOAL IS TO GROW BETWEEN 20 TO 30 A YEAR AND 30 WOULD BE 22 CENTS'' IN THE SECOND QUARTER IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY BLOCKBUSTER STOCK FELL 125 CENTS TO CLOSE AT 17875 A SHARE 9304220199 930422 FOREIGN EXCHANGE DOLLAR RISES POSSIBLY SIGNALING PAUSE IN YEN'S RECENT SURGE TO RECORD LEVELS BY RICHARD SCHUMACHER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR WAS HIGHER IN SEESAW TRADING THAT TRADERS SAID MIGHT SIGNAL A PAUSE TO THE YEN'S RECENT ADVANCES LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 15995 MARKS UP FROM 15963 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11071 YEN UP FROM 11055 YEN STERLING WAS TRADING AT 15400 DOWN FROM 15475 IN TOKYO THURSDAY AT MIDDAY THE DOLLAR WAS TRADING AT 11142 YEN AND 15985 MARKS THE YEN HAS APPRECIATED MORE THAN 11 SINCE THE BEGINNING OF FEBRUARY PRIMARILY ON INDICATIONS JAPAN'S MAJOR TRADING PARTNERS FAVOR A STRONGER YEN AS A TOOL FOR REDUCING THE NATION'S BALLOONING TRADE SURPLUSES TRADERS SAID A FRESH SURGE OF MARKET MOMENTUM PUSHED THE DOLLAR BELOW THE PSYCHOLOGICALLY SIGNIFICANT 11000YEN LEVEL EARLY IN ASIAN TRADING IN EARLY ACTIVITY THE DOLLAR FELL TO YET ANOTHER POSTWORLD WAR II LOW OF 10995 YEN WHICH ECLIPSED A RECORD OF 11025 YEN SET TUESDAY PLAYERS WERE LOOKING FOR A STRONGER YEN BECAUSE THE US ADMINISTRATION SEEMS TO WANT A STRONGER YEN SAID AKIRA YAMAGAMI AN ASSISTANT VICE PRESIDENT AT HOKKAIDO TAKUSHOKU BANK LTD IN NEW YORK HE APPARENTLY WAS REFERRING TO COMMENTS ON FRIDAY BY PRESIDENT BILL CLINTON WHO SAID THE APPRECIATION OF THE YEN WOULD BE A FACTOR CONTRIBUTING TO STRENGTHENED US EXPORTS TO JAPAN BUT AFTER TUMBLING TO 11000 YEN A LEVEL TRADERS SAID HAS BEEN A MAJOR MARKET GOAL FOR SOME TIME PROFITTAKING THEN SENT THE DOLLAR REBOUNDING ACCORDING TO WILLIAM ARNOLD CHIEF DEALER AT CHEMICAL BANK RUMORS OF REPEATED ROUNDS OF INTERVENTION FROM THE BANK OF JAPAN ALSO HELPED ARREST THE YEN'S RISE MR YAMAGAMI SAID AFTER REACHING ITS PEAK EARLY IN THE GLOBAL TRADING DAY THE YEN THEN BOUNCED BACK AND FORTH AGAINST THE DOLLAR AND MARK THROUGH THE REMAINDER OF THE DAY LARGELY ON TECHNICAL CONSIDERATIONS MARKET PARTICIPANTS SAID AS A RESULT OF THE DAY'S ACTIVITY THE YEN'S NEARTERM DIRECTION IS DIFFICULT TO FORECAST SAID BRIAN DOLAN A TRADER AT DAIICHI KANGYO BANK LTD HE NOTED THAT THE MARKET HAS GOTTEN A PRETTY GOOD RUN OUT OF THE YEN IN RECENT WEEKS WITHOUT NEW COMMENTS FROM SENIOR US OFFICALS ADVOCATING FURTHER YEN APPRECIATION THE JAPANESE CURRENCY PROBABLY WILL CONSOLIDATE AROUND ITS CURRENT LEVELS MR DOLAN SAID BUT MR ARNOLD OF CHEMICAL BANK SAID THAT DESPITE YESTERDAY'S PROFITTAKING THE YEN'S TREND REALLY IS UNINTERRUPTED HE SAID HE LOOKS FOR NEW GAINS BY THE YEN TRADERS SAID THE DOLLAR'S MOVEMENT AGAINST THE MARK WAS A CONTINUATION OF THE ESSENTIALLY TECHNICAL TRADING THAT HAS GUIDED IT IN RECENT DAYS THE MARKET THEY SAID NOW IS FOCUSED ON TODAY'S MEETING OF THE BUNDESBANK'S INTERESTRATESETTING CENTRAL BANK COUNCIL 9304220198 930422 WHITE HOUSE UNVEILS 420 MILLION PLAN FOR NATIONAL STANDARDS IN EDUCATION BY ROCHELLE SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON EDUCATION SECRETARY RICHARD RILEY AND LABOR SECRETARY ROBERT REICH UNVEILED THE CLINTON ADMINISTRATION'S FIRST MAJOR EDUCATION LEGISLATION SAYING THE CREATION OF VOLUNTARY NATIONAL STANDARDS WOULD ULTIMATELY IMPROVE THE NATION'S WORK FORCE THE 420 MILLION PACKAGE CALLS FOR NATIONAL STANDARDS TO DETERMINE WHAT STUDENTS SHOULD KNOW HOW TO TEST FOR IT AND WAYS TO ENSURE THAT SCHOOLS ARE PREPARED TO TEACH CHILDREN MOST OF THE MONEY IS EARMARKED FOR ENCOURAGING STATES TO ENACT SWEEPING CHANGES IN THEIR LOCAL SCHOOL SYSTEMS WE WANT TO HAVE THIS KIND OF ELECTRICITY OF INTEREST BUBBLING UP FROM THE SCHOOLS THEMSELVES MR RILEY SAID THAT'S THE WAY REAL REFORM TAKES PLACE UNDER THE PLAN CALLED GOALS 2000 A SERIES OF NATIONAL PANELS WOULD CREATE MODEL EDUCATION STANDARDS STATES COULD THEN CONSIDER THESE MODELS AS THEY DECIDE HOW TO REVAMP THEIR SCHOOLS THE CURRENT NATIONAL EDUCATION GOALS PANEL WOULD ESTABLISH HOW THE COUNTRY CAN MEET ITS SIX MAIN EDUCATION GOALS WHICH INCLUDE BOOSTING LITERACY AND HIGH SCHOOL GRADUATION RATES AS WELL AS INCREASING PROFICIENCY IN MATH AND SCIENCE A NEW PANEL CALLED THE NATIONAL EDUCATION STANDARDS AND IMPROVEMENT COUNCIL WOULD BE ESTABLISHED TO DETERMINE ACADEMIC TESTING AND SCHOOL STANDARDS A THIRD PANEL CALLED THE NATIONAL WORKFORCE STANDARDS BOARD WOULD IDENTIFY ESSENTIAL OCCUPATIONAL SKILLS AND CREATE A SYSTEM TO CERTIFY STUDENTS WHO GAIN THESE SKILLS WITHOUT ATTENDING COLLEGE WE HAVE PERHAPS THE WORLD'S BEST SYSTEM OF HIGHER EDUCATION BUT WE HAVE AMONG THE WORST SYSTEMS FOR GETTING STUDENTS FROM SCHOOL TO WORK WHEN STUDENTS DECIDE NOT TO GO TO COLLEGE MR REICH SAID IN MANY WAYS CLINTON'S EDUCATION LEGISLATION IS A CONTINUATION OF THE EDUCATION PLANS PROPOSED BY FORMER PRESIDENT BUSH THE SIX NATIONAL EDUCATION GOALS ORIGINALLY ADOPTED IN 1990 BY MR BUSH AND THE NATION'S GOVERNORS WOULD BE FORMALLY ENACTED INTO LAW ACCORDING TO THE BILL ONE OF THE GOALS WHICH IDENTIFIES A NUMBER OF SUBJECTS THAT STUDENTS MUST MASTER WOULD BE EXPANDED IT WOULD REQUIRE THAT STUDENTS SHOW COMPETENCY IN THE ARTS AND FOREIGN LANGUAGES ADMINISTRATION OFFICIALS STRESSED THAT THE TESTING STANDARDS WOULDN'T OUTLINE MODEL STUDENT EXAMS INSTEAD THEY WOULD IDENTIFY GENERAL CRITERIA FOR TESTS SAID MICHAEL COHEN AN EDUCATION DEPARTMENT CONSULTANT WE ARE NOT PROPOSING IN ANY WAY NATIONAL TESTING FOR INDIVIDUALS MR RILEY ASSERTED AMONG THE MOST CONTROVERSIAL ITEMS PROPOSED ARE THE OPPORTUNITY TO LEARN STANDARDS DESIGNED TO MAKE SURE SCHOOLS ARE PREPARED TO TEACH STUDENTS THESE STANDARDS WOULD OUTLINE WAYS TO ENSURE THAT TEACHERS WERE WELLTRAINED AND THAT CURRICULA WERE UPTODATE SOME REPUBLICANS HAVE OPPOSED SUCH STANDARDS FEARING THEY COULD LEAD TO FEDERAL INTERFERENCE WITH THE DAILY OPERATION OF SCHOOLS AND SOME DEMOCRATS COMPLAINED EARLIER THIS YEAR THAT PRESIDENT CLINTON WAS EMPHASIZING TESTING TOO MUCH OVER IMPROVING SCHOOLS SUCH STANDARDS BECAME A FOCUS OF THE EDUCATION DEBATE LAST YEAR AND WERE PARTLY RESPONSIBLE FOR DERAILING THE LEGISLATION THAT STALLED ON CAPITOL HILL SECRETARY RILEY EMPHASIZED YESTERDAY THAT THE LEGISLATION WAS DESIGNED TO ENCOURAGE STATE AND LOCAL CHANGES THAT ARE BOTTOMUP LONGTERM AND SYSTEMWIDE HE ADDED THAT THE BILL IS PART OF THREE LARGER THEMES OF THE CLINTON PRESIDENCY CHANGE PROVIDING OPPORTUNITY AND IMPROVING THE ECONOMY BOTH MESSRS RILEY AND REICH VIEW THE EDUCATION LEGISLATION AS THE CORNERSTONE OF WORKFORCE DEVELOPMENT BY ENCOURAGING EDUCATIONAL REFORM ACROSS AMERICA GOALS 2000 WILL HELP CREATE A HIGHSKILL HIGHWAGE WORK FORCE THAT IS THE BEST IN THE WORLD MR RILEY DECLARED 9304220197 930422 TECHNOLOGY & MEDICINE CLINTON TO BACK INTERNATIONAL ACCORD ON ENVIRONMENT THAT BUSH SPURNED BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON SAID THE US WILL SIGN AN INTERNATIONAL AGREEMENT TO PROTECT PLANT AND ANIMAL LIFE THAT THE BUSH ADMINISTRATION SPURNED AT LAST YEAR'S EARTH SUMMIT IN RIO IN ADDITION THE PRESIDENT COMMITTED THE US TO REDUCING EMISSIONS OF GREENHOUSE GASES SUCH AS CARBON DIOXIDE TO 1990 LEVELS BY THE YEAR 2000 ALTHOUGH A CLIMATE TREATY SIGNED BY THE US IS GENERALLY BELIEVED TO EMBRACE THAT GOAL THE BUSH ADMINISTRATION CONTENDED THAT THE US WASN'T BOUND TO MAKE THE REDUCTION AND WATERED DOWN THE TREATY'S LANGUAGE OVERALL MR CLINTON'S INITIATIVES ANNOUNCED YESTERDAY IN A SPEECH AT THE US BOTANIC GARDEN WON PRAISE FROM THE ENVIRONMENTAL COMMUNITY WHICH HAS LATELY EXPRESSED CONCERN THAT HIS ADMINISTRATION IS GIVING THE ENVIRONMENT LOW PRIORITY IN ITS EARLY DAYS WE THOUGHT IT WAS A GREAT SPEECH SAID DAN LASHOFF SENIOR PROJECT SCIENTIST AT THE NATURAL RESOURCES DEFENSE COUNCIL THE ENVIRONMENTALISTS WERE ESPECIALLY PLEASED WITH PRESIDENT CLINTON'S PLEDGE TO SIGN THE SOCALLED BIODIVERSITY CONVENTION AN INTERNATIONAL AGREEMENT AIMED AT PRESERVING ENDANGERED SPECIES OF PLANTS AND ANIMALS THE BUSH ADMINISTRATION DECLINED TO SIGN THE AGREEMENT LARGELY ON THE GROUNDS THAT IT WOULD ENDANGER US PATENTS ON BIOTECHNOLOGY PRODUCTS AND THAT THE AGREEMENT GAVE WEALTHIER COUNTRIES SUCH AS THE US LITTLE CONTROL OVER HOW THEY WOULD FUND THE EFFORT THE CLINTON ADMINISTRATION IS NOW DEVELOPING INTERPRETIVE LANGUAGE THAT IT SAYS WILL PROTECT PATENT RIGHTS AND EASE THE FUNDING PROBLEM IN ANTICIPATION THAT THIS WILL BE ACCOMPLISHED BIOTECHNOLOGY COMPANY GENENTECH INC HAS DROPPED ITS PREVIOUS OPPOSITION TO THE US'S SIGNING THE AGREEMENT BUT THE UNITED STATES COUNCIL FOR INTERNATIONAL BUSINESS AN INDUSTRY GROUP ADOPTED A MORE CAUTIOUS STANCE URGING THE PRESIDENT NOT TO SIGN THE TREATY UNTIL HE IS ASSURED THAT THE US INTERPRETATION IS ACCEPTED BY OTHER NATIONS ONCE THE US SIGNS THE TREATY CONGRESS WOULD HAVE TO RATIFY THE PACT WHICH HAS BEEN SIGNED BY 150 COUNTRIES AND RATIFIED BY 14 IT WOULD TAKE EFFECT AFTER RATIFICATION BY 30 COUNTRIES IN HIS REMARKS PRESIDENT CLINTON DIDN'T SAY HOW THE US WOULD REDUCE THE GASES THAT MANY SCIENTISTS BELIEVE CONTRIBUTE TO THE GREENHOUSE EFFECT THAT IS BELIEVED TO BE RAISING THE EARTH'S TEMPERATURE NOR DID HE PROPOSE LIMITS THAT WOULD EXTEND INTO THE 21ST CENTURY AS FAVORED BY ENVIRONMENTALISTS BUT SCOTT HAJOST AN ATTORNEY FOR THE ENVIRONMENTAL DEFENSE FUND SAID THAT A TENTATIVE COMMITMENT TO REDUCING GREENHOUSES GASES AFTER THE YEAR 2000 COULD BE READ INTO THE LANGUAGE OF MR CLINTON'S REMARKS IN HIS SPEECH PRESIDENT CLINTON SAID HE WAS INSTRUCTING MY ADMINISTRATION TO PRODUCE A COSTEFFECTIVE PLAN BY AUGUST THAT CAN CONTINUE THE TREND OF REDUCED EMISSIONS THE ISSUE OF REDUCING GREENHOUSE GASES HAS CAUSED SOME CONTROVERSY WITHIN THE CLINTON ADMINISTRATION IN RECENT DAYS ACCORDING TO ONE OFFICIAL WHO ATTENDED SEVERAL MEETINGS ON THE MATTER DEPUTY TREASURY SECRETARY ROGER ALTMAN HAS EXPRESSED CONCERN THAT AN OVERLY STRONG STAND ON REDUCING SUCH EMISSIONS COULD HARM US INDUSTRY BUT VICE PRESIDENT AL GORE AND KATIE MCGINTY A FORMER SENATE AIDE TO MR GORE WHO HEADS THE WHITE HOUSE ENVIRONMENTAL OFFICE PRESSED HARD FOR PRESIDENT CLINTON TO RESTATE HIS CAMPAIGN PLEDGE TO ADHERE TO 1990 LEVELS BY THE YEAR 2000 MR CLINTON ALSO DISCUSSED PLANS FOR A NATIONAL BIOLOGICAL SURVEY WHICH INTERIOR SECRETARY BRUCE BABBITT WILL CREATE BY REORGANIZING AND CONSOLIDATING RESEARCH PROGRAMS SPREAD OVER EIGHT BUREAUS OF HIS AGENCY THE PROJECT WHICH WILL BE MODELED ON THE US GEOLOGICAL SURVEY WILL BE DESIGNED TO ASSESS THE ABUNDANCE HEALTH AND DISTRIBUTION OF PLANTS AND ANIMALS IN NATURAL AREAS THE SURVEY WILL DRAW MOST OF ITS 850 BIOLOGISTS AND FUNDING FROM THE FISH AND WILDLIFE SERVICE AND WON'T REQUIRE ADDITIONAL SPENDING MR BABBITT HAS ALREADY RECRUITED THOMAS LOVEJOY A SMITHSONIAN INSTITUTION SCIENTIST TO HELP SET UP THE PROGRAM AMONG SEVERAL MINOR ENVIRONMENTAL INITIATIVES ANNOUNCED YESTERDAY WAS THE DEVELOPMENT OF A GREEN GDP BY THE BUREAU OF ECONOMIC ANALYSIS TO INCORPORATE THE COST OF POLLUTION INTO A VERSION OF THE GROSS DOMESTIC PRODUCT SUCH A MOVE HAS LONG BEEN ADVOCATED BY VICE PRESIDENT GORE EVEN BEFORE THE ELECTION THE COMMERCE DEPARTMENT WAS WORKING ON WAYS TO BETTER MEASURE THE ECONOMIC EFFECTS OF POLLUTION AND OF DEPLETING NATURAL RESOURCES IT IS NOW SPEEDING UP THAT EFFORT BUT ISN'T LIKELY TO UNVEIL ANY NEW NUMBERS FOR ANOTHER YEAR 9304220196 930422 POLITICS & POLICY TWO TOUGH SPRING CAMPAIGNS APPROACH FULL BLOOM WISCONSIN BATTLE FOR HOUSE JOINED BY INTEREST GROUPS BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL MILWAUKEE THE SPECIAL ELECTION FOR A WISCONSIN CONGRESSIONAL SEAT MAY TURN LESS ON BILL CLINTON'S ECONOMIC PROGRAM THAN ON BARBARA LYONS'S COMPUTER PROGRAM FROM HER UNASSUMING BASEMENT OFFICE HERE MRS LYONS EXECUTIVE DIRECTOR OF WISCONSIN RIGHTTOLIFE DEPLOYS A DATABASE LISTING 47000 DUESPAYING MEMBERS AND HUNDREDS OF THOUSANDS OF SYMPATHIZERS BEHIND THE CANDIDACY OF ANTIABORTION REPUBLICAN MARK NEUMANN MORE THAN JUST VOTERS SHE SAYS WE HAVE TREMENDOUSLY DEDICATED VOLUNTEERS AND A LOT OF THEM BUT THE DEMOCRATIC CANDIDATE PETER BARCA CAN COUNT ON A VOLUNTEER ARMY OF HIS OWN THOUSANDS OF UNION MEMBERS MOBILIZING FOR THE MAY 4 ELECTION THAT HAS TURNED INTO A TEST OF ORGANIZATIONAL MUSCLE FOR COMPETING POLITICAL TRIBES I DON'T SEE THIS AS MUCH OF A REPUBLICANDEMOCRAT THING OR A MARK NEUMANNPETER BARCA THING SAYS BOB MCNATT A TOP POLITICAL OPERATIVE FOR THE UNITED AUTO WORKERS IT'S WHOEVER CAN FILL UP THE BUS AND GET THE MOST FOLKS OUT IF NOT EXACTLY A REFERENDUM ON THE NEW PRESIDENT'S FIRST 100 DAYS THE RACE TO SUCCEED LONGTIME DEMOCRATIC REP LES ASPIN WHO RESIGNED TO BECOME MR CLINTON'S DEFENSE SECRETARY HAS NATIONAL SIGNIFICANCE NONETHELESS AT A TIME WHEN NEITHER MAJOR PARTY CAN CLAIM A MAJORITY COALITION THE CONTEST PLAYING OUT ACROSS THE FACTORIES AND DAIRY FARMS OF SOUTHEASTERN WISCONSIN PROMISES A TELLING SNAPSHOT OF THE GRASSROOTS CLOUT HELD BY SEVERAL IMPORTANT CONSTITUENCIES FOR AN AMALGAM OF TEACHERS GOVERNMENT EMPLOYEES AND INDUSTRIAL WORKERS IN THIS HEAVILY UNIONIZED REGION THE RACE OFFERS ANOTHER CHANCE TO SHOW THAT ORGANIZED LABOR CAN STILL DELIVER FOR DEMOCRATIC POLITICIANS JUST TWO WEEKS AGO LABOR SUFFERED A BITTER DEFEAT WHEN DEMOCRATS LOST TWO OF THREE SPECIAL ELECTIONS FOR THE STATE SENATE PROVIDING POPULAR GOP GOV TOMMY THOMPSON WITH THE FIRST REPUBLICAN MAJORITY IN THE CHAMBER IN 18 YEARS FOR THE FOOTSOLDIERS OF THE REPUBLICAN RIGHT THE WISCONSIN RACE AND AN ARRAY OF OTHER LOCAL CONTESTS ACROSS THE COUNTRY THIS YEAR REPRESENT A CHANCE TO MOVE BEYOND THE DEBACLE OF THE 1992 GOP CONVENTION IN HOUSTON THE GOAL IS LAYING TO REST THE MYTH THAT THE PROFAMILY FORCES ARE A LIABILITY TO THE REPUBLICAN PARTY SAYS RALPH REED WHOSE VIRGINIABASED CHRISTIAN COALITION IS MAILING 100000 VOTER GUIDES AND CONDUCTING TELEPHONE BANKS TO ASSIST MR NEUMANN WE WIN ELECTIONS THE OLD FASHIONED WAY WE DO THE HARD WORK TO BE SURE MR CLINTON'S FORTUNES HAVE INFLUENCED THE RACE IN THE CLOSELY BALANCED FIRST DISTRICT AND BOTH NATIONAL PARTIES ARE POURING IN MONEY AND EXPERTISE TO AVOID EMBARRASSMENT HERE AS ELSEWHERE THE NEW PRESIDENT REMAINS POPULAR ENOUGH TO TEMPER REPUBLICAN ATTACKS BUT NOT ENOUGH TO COMMAND UNFLINCHING SUPPORT FROM DEMOCRATS THERE CONTINUES TO BE SUPPORT FOR THIS FELLOW AND FOR GIVING HIM A CHANCE TO SUCCEED BUT IT'S UNFORMED AND DOESN'T TRANSLATE INTO SUPPORT FOR SPECIFIC PROGRAMS SAYS CHARLES O JONES A UNIVERSITY OF WISCONSIN POLITICAL SCIENTIST THUS MR NEUMANN 39 YEARS OLD A WEALTHY HOMEBUILDER INTERRUPTS HIS CONDEMNATION OF THE ADMINISTRATION'S PROPOSED TAX INCREASES TO SAY HE'LL BACK MR CLINTON'S EFFORTS TO REFORM WELFARE AND RESTORE THE INVESTMENTTAX CREDIT AND MR BARCA 37 A DEMOCRATIC STATE LEGISLATOR SAYS HE WON'T SUPPORT EITHER THE TAX INCREASES OR THE PRESIDENT'S STIMULUS PROGRAM UNTIL THE ADMINISTRATION COMES UP WITH MORE SPENDING CUTS HIS CAMPAIGN LITERATURE DOESN'T MENTION MR CLINTON BOTH CANDIDATES ECHO ROSS PEROT WHO CAPTURED 23 OF THE VOTE HERE LAST NOVEMBER EACH PLEDGES TO MAINTAIN HIS PRINCIPAL RESIDENCE IN THE DISTRICT RATHER THAN MOVE INSIDE THE BELTWAY MR BARCA SAYS HE'S A RESULTSORIENTED DEMOCRAT AND INVOKES MR PEROT IN OPPOSING THE NORTH AMERICAN FREE TRADE AGREEEMENT AS A JOBLOSER MR NEUMANN WHO SPENT MORE THAN 700000 OF HIS OWN MONEY UNSUCCESSFULLY CHALLENGING MR ASPIN LAST FALL CALLS HIMSELF A REPUBLICAN ROSS WHO WILL USE HIS BUSINESS ACUMEN TO HELP TRIM THE FEDERAL DEFICIT MOTIVATING PEROT FOLLOWERS TO VOTE MAY BE TOUGHER THAN MIMICKING HIS THEMES MR BARCA HAS RECRUITED A COUPLE OF PEROT ORGANIZERS WHILE MR NEUMANN SIGNED UP MR PEROT'S 1992 WISCONSIN COORDINATOR BUT POLITICAL OBSERVERS QUESTION WHETHER MANY PEROT SUPPORTERS WILL TURN OUT FOR A MIDYEAR HOUSE RACE THERE'S LITTLE DOUBT HOWEVER THAT BARBARA LYONS'S ANTIABORTION LEGIONS WILL BE MOTIVATED THROUGH PHONE CALLS AND MAILINGS SHE PROMISES TO MAKE CERTAIN THAT ANTIABORTION VOTERS IDENTIFY MR BARCA WITH THE MOST EXTREME NATIONAL ABORTION POLICY ONE COULD EVER CONCEIVE THE FREEDOM OF CHOICE ACT PROMOTED BY MR CLINTON AND DEMOCRATIC CONGRESSIONAL LEADERS THERE'S A LOT MORE REASON FOR OUR PEOPLE TO BE ANGRY AND UPSET ADDS THE CHRISTIAN COALITION'S MR REED WHO ASIDE FROM ABORTION CITES MR CLINTON'S MOVE TO LIFT THE BAN ON GAYS IN THE MILITARY FOR HIS PART MR BARCA HOPES THE SPECTER OF THE PAT ROBERTSON WING OF THE GOP WILL FUEL DEMOCRATIC TURNOUT MR NEUMANN IS PLAINLY SENSITIVE TO THE POINT HE SAYS HE HAS NEVER HEARD OF MR REED CASTS HIS OPPOSITION TO GAYS IN THE MILITARY IN TERMS OF PRACTICALITY RATHER THAN MORALITY AND DOESN'T DWELL ON HIS ABORTION STANCE I'M PROLIFE HE SAYS CURTLY IN AN INTERVIEW NOW CAN WE TALK ABOUT JOBS FOR OUR FAMILIES MUCH OF WISCONSIN'S ECONOMY IS THRIVING BUT THE FIRST DISTRICT STILL FEELS THE EFFECTS OF MANUFACTURING TROUBLES OF THE 1980S INCLUDING THE SHUTDOWN OF A LARGE CHRYSLER CORP PLANT IN MR BARCA'S HOME BASE OF KENOSHA THE DEMOCRAT'S PROSPECTS DEPEND LARGELY ON HEAVY TURNOUT FROM AMONG THE MORE THAN 60000 UNION MEMBERS IN THE DISTRICT IN ADDITION TO TRADITIONAL CANVASSING THE AFLCIO PLANS TO OFFER ELECTIONDAY BABYSITTING AND RIDES TO THE POLLS IN JANESVILLE LAST WEEK MR BARCA RECEIVED A LARGELY INDIFFERENT RESPONSE AS HE GREETED THE AFTERNOON SHIFT AT LEAR SEATING WHICH MAKES CUSHIONS FOR GENERAL MOTORS BLAZERS AND SUBURBANS BUT UAW COORDINATOR DARRELL BARRETT HAS A WAY OF QUICKLY CAPTURING THE ATTENTION OF THE 450 EMPLOYEES HE LINKS MR NEUMANN TO A LONGDEAD BUSH ADMINISTRATION PROPOSAL TO MAKE LAIDOFF WORKERS WAIT A WEEK BEFORE COLLECTING UNEMPLOYMENT BENEFITS AN OMINOUS PROSPECT AT A PLANT THAT PAUSES FOR TWO WEEKS EACH SUMMER WHILE GM RETOOLS THE NEUMANN CAMPAIGN DISAVOWS ANY SUCH IDEA BUT MR BARRETT KEEPS REMINDING MEMBERS OF WHAT THE UNION THINKS IS AT STAKE I'LL PROBABLY TELL 'EM JUST ABOUT EVERY DAY HE SAYS SEE RELATED ARTICLE TEXAS PACT HUNTS APPOINTED SENATOR VOWS BLOODY FIGHT WSJ APRIL 22 1993 9304220195 930422 TECHNOLOGY & MEDICINE THREE DRUG CONCERNS HAD MIXED RESULTS IN 1ST PERIOD AMID ACCOUNTING CHANGES BY ROBERT J BRENNAN STAFF REPORTER OF THE WALL STREET JOURNAL THREE PHARMACEUTICAL COMPANIES REPORTED VARYING FIRSTQUARTER RESULTS TWO OF THEM BRISTOLMYERS SQUIBB CO AND RHONEPOULENC RORER AFFECTED BY ACCOUNTING CHANGES AND THE THIRD MARION MERRELL DOW INC HURT BY SALES DECLINES FOR SEVERAL MAJOR PRODUCTS THAT LED TO A STEEP DROP IN PROFIT SALES FOR ALL THREE WERE HAMPERED BY FLUCTUATIONS IN CURRENCY RATES THE COMPANY HAD A HUGE JUMP IN EARNINGS BUT THAT WAS BECAUSE YEAREARLIER NET WAS ERODED BY A CHARGE FOR NEW ACCOUNTING FOR POSTRETIREMENT BENEFITS EARNINGS FROM CONTINUING OPERATIONS ROSE 8 AND SALES ROSE 4 BRISTOLMYERS SAID THAT EXCLUDING THE EFFECT OF CURRENCY FLUCTUATIONS SALES ROSE 6 SALES IN THE US ROSE 7 BUT INTERNATIONAL SALES ROSE ONLY 1 BECAUSE OF THE CURRENCY FLUCTUATIONS WORLDWIDE DRUG SALES WERE HIGHER SALES OF HEALTHCARE PRODUCTS ALSO ROSE BUT MAINLY AS A RESULT OF GROWTH OUTSIDE THE US IN THE CONSUMER PRODUCTS BUSINESS BAN ANTIPERSPIRANT HAD STRONG INTERNATIONAL SALES GROWTH AND GERBER BABY FORMULA DID PARTICULARLY WELL BRISTOL SAID A COMPANY SPOKESWOMAN SAID SPECIFIC RESULTS FOR THE VARIOUS BUSINESS SEGMENTS WEREN'T AVAILABLE YET INVESTORS APPARENTLY DIDN'T LIKE BRISTOLMYERS'S NUMBERS THE COMPANY'S SHARES WERE QUOTED IN LATE TRADING DOWN 1 TO 61 ON THE NEW YORK STOCK EXCHANGE THE COLLEGEVILLE PA CONCERN A SUBSIDIARY OF FRANCE'S RHONEPOULENC SA HAD A 26 INCREASE IN OPERATING EARNINGS EXCLUDING ONETIME GAINS IN THE RECENT AND YEAREARLIER QUARTERS IT SAID BETTER GROSS MARGINS AND LOWER COSTS AMONG OTHER THINGS CONTRIBUTED TO THE EARNINGS INCREASE SALES WERE UP 2 TO 9163 MILLION FROM 8978 MILLION ALTHOUGH WITHOUT THE EFFECT OF CURRENCY FLUCTUATIONS AND DIVESTITURE OF SOME THYROID DRUGS THEY WERE UP 7 SALES GROWTH IN THE US WAS LED BY OVERTHECOUNTER PRODUCTS AND BY CONTINUED GROWTH OF ITS CARDIOVASCULAR DRUGS DILACOR AND LOZOL AND RESPIRATORY PRODUCTS NASACORT AND AZMACORT RHONEPOULENC RORER SHARES WERE QUOTED IN LATE TRADING AT 48375 UNCHANGED ON THE NEW YORK STOCK EXCHANGE EXCLUDING THE NET EFFECT OF ACCOUNTING CHANGES FOR INCOME TAXES AND POSTRETIREMENT BENEFITS FIRSTQUARTER EARNINGS FOR MARION MERRELL DOW WERE DOWN 56 THE CONCERN BASED IN KANSAS CITY MO HAD WARNED INVESTORS LAST MONTH THAT EARNINGS COULD BE AS MUCH AS 60 TO 70 LOWER THAN PREVIOUSLY EXPECTED IT BLAMED DECLINING SALES OF ITS NICODERM NICOTINE PATCH AMID A WEAKENING MARKET FOR SMOKINGCESSATION PRODUCTS AND PLUNGING SALES FOR SOME OF ITS LEADING PRESCRIPTION DRUGS PARTICULARLY THE HEART DRUG CARDIZEM MARION MERRELL WHICH IS 71 OWNED BY DOW CHEMICAL CO REPORTED A 20 SALES DECLINE FOR THE QUARTER TO 617 MILLION FROM 779 MILLION SALES OF NICODERM THE MARKET LEADER IN NICOTINE PATCHES WERE DOWN 30 CARDIZEM SALES WERE OFF 11 AND SALES OF SELDANE THE LEADING ANTIALLERGY TREATMENT WERE DOWN 30 SALES OF ITS ULCER DRUG CARAFATE WERE OFF 26 OTHER FACTORS IN THE QUARTER'S LOWER SALES WERE THE TRANSFER OF CONSUMER PRODUCT SALES TO MARION MERRELL DOW'S PARTNERSHIP WITH SMITHKLINE BEECHAM PLC FLUCTUATING CURRENCIES AND MORE GOVERNMENTMANDATED PRICE REBATES AND NEGOTIATED DISCOUNTS MARION MERRELL WAS QUOTED IN LATE TRADING AT 18625 UNCHANGED ON THE BIG BOARD 9304220194 930422 WHO'S NEWS LESLIE'S POOLMART LESLIE'S POOLMART CHATSWORTH CALIF ROBERT D OLSEN WAS NAMED CHIEF FINANCIAL OFFICER OF THE RETAILER OF SWIMMING POOL SUPPLIES AND RELATED PRODUCTS MR OLSEN 40 YEARS OLD WHO PREVIOUSLY WAS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT TUNEUP MASTERS SUCCEEDS HUGH O PIERCE WHO RESIGNED 9304220193 930422 ECONOMY SMALL IMPACT SEEN FROM THE DEMISE OF STIMULUS PLAN BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ECONOMY ISN'T LIKELY TO FEEL THE DEATH OF PRESIDENT CLINTON'S ECONOMICSTIMULUS PLAN THE 16 BILLIONPLUS PLAN WOULD HAVE BEEN QUITE SMALL IN THIS 6 TRILLION ECONOMY COMPUTER MODELS SUGGEST THAT WITH OR WITHOUT THE STIMULUS THE ECONOMY APPEARS TO BE ON A MODEST GROWTH PATH IF YOU HAPPEN TO BE ONE OF THE 800000 PEOPLE WHO WOULD HAVE GOTTEN A TEMPORARY GOVERNMENT JOB FROM THE PLAN IT MAKES A BIG DIFFERENCE SAID JOEL PRAKKEN VICE PRESIDENT OF LAURENCE H MEYER & ASSOCIATES A ST LOUIS FORECASTING FIRM BUT THERE ARE MORE THAN 130 MILLION PEOPLE WORKING IN THE US THE STIMULUS PACKAGE WOULD HAVE BEEN SMALL AND IT WOULD HAVE ONLY BEEN TEMPORARY MR PRAKKEN ESTIMATED THAT WITH MR CLINTON'S STIMULUSSPENDING PLAN AND HIS INVESTMENT TAX CREDIT WHICH IS ALSO IN TROUBLE ON CAPITOL HILL THE ECONOMY WOULD GROW 35 IN 1993 30 IN 1994 AND 20 IN 1995 WITHOUT IT GROWTH IS FORECAST AT 31 IN 1993 28 IN 1994 AND 26 IN 1995 A STIMULUS PLAN THOUGH WOULD HAVE BEEN INSURANCE FOR A RECOVERY THAT HAS BEEN BOTH WAYWARD AND STUBBORN SINCE IT STARTED TWO YEARS AGO THE STIMULUS WAS A LOT LIKE TRAINING WHEELS ON A BICYCLE THEY ARE THERE WHEN YOU TIP A LITTLE BIT TOO FAR SAID CHARLES RENFRO CHIEF ECONOMIST OF ALPHAMETRICS CORP IN SUBURBAN PHILADELPHIA THE SLOWING OF THE ECONOMY FROM THE PACE OF LATE LAST YEAR HAS PUT SOME ECONOMISTS ON EDGE AND THE ADMINISTRATION HAS BEEN QUICK TO PAINT A PICTURE OF AN ECONOMY THAT WILL BE IN BIG TROUBLE IF THE CLINTON STIMULUS IS ABANDONED BUT MOST ANALYSTS FEEL THE CLINTON PLAN SIMPLY WOULD EASE WORRIES ABOUT THE ECONOMY IT FEELS A LITTLE RISKY TO LIVE LIFE WITHOUT INSURANCE SAID NOBEL PRIZEWINNING ECONOMIST ROBERT SOLOW OF THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY MR SOLOW WARNED OF TROUBLE AHEAD IF CONGRESS ADOPTS MR CLINTON'S DEFICITREDUCTION PLAN WITH ITS SPENDING CUTS AND TAX INCREASES DEFICIT REDUCTION COULD SET A SLUGGISH ECONOMY BACK A FEW STEPS IF WE GET CONTRACTION ON AN ECONOMY THAT'S ALREADY WEAK THINGS COULD SLOW DOWN MORE THAN WE EXPECT HE SAID 9304220192 930413 LETTERS TO THE EDITOR PESTICIDES AND CANCER AS A JOURNALIST I WOULD NEVER PRESUME PUBLICLY TO DERIDE A SCIENTIFIC INQUIRY WITHOUT A CLEAR UNDERSTANDING OF THE FACTS BUT THIS RESTRAINT APPARENTLY IS NOT SHARED BY AGRICULTURAL ECONOMIST DENNIS T AVERY IN HIS ATTACK ON MY RECENT FRONTLINE DOCUMENTARY ABOUT PESTICIDES IN OUR CHILDREN'S FOOD FRONTLINE PERPETUATES PESTICIDE MYTHS EDITORIAL PAGE APRIL 1 MR AVERY EVEN ADMITS THAT HE SUBMITTED HIS CRITIQUE FOR PUBLICATION SEVERAL DAYS BEFORE THE PROGRAM WAS BROADCAST AND HIS SUBSTANTIAL POINTS ARE PROVABLY UNTRUE FOR INSTANCE HE STATES EMPHATICALLY WITHOUT ATTRIBUTION THAT FARMERS AND FARM KIDS HAVE LOWER RATES OF LEUKEMIA AND CANCER THAN NONFARM KIDS HOW CAN ANYONE MAKE SUCH A CLAIM IN LIGHT OF THE REPORT OF THE NATIONAL CANCER INSTITUTE SEVEN MONTHS AGO THAT CONCLUDED JUST THE OPPOSITE THE STUDY FOUND FARM FAMILIES SUFFER FROM ELEVATED RATES OF SEVEN FORMS OF CANCER INCLUDING LEUKEMIA AND THE LEADING SUSPECT WAS THE USE OF AGRICULTURAL CHEMICALS MR AVERY THEN ATTACKS ME FOR OPENING MY REPORT IN THE TOWN OF MCFARLAND CALIF WHERE A FARM WORKER COMMUNITY HAS SUCH A PROFUSION OF CHILDHOOD DISEASES IT CAME TO BE KNOWN AS THE MCFARLAND CHILDHOOD CANCER CLUSTER MR AVERY WOULD HAVE US BELIEVE THIS ANOMALY WAS EXTENSIVELY STUDIED AND THAT PESTICIDES WERE ACQUITTED AS A POSSIBLE CAUSE IF MR AVERY HAD DONE ANY SERIOUS INVESTIGATION HE WOULD HAVE FOUND VERY FEW STUDIES AND THOSE GROSSLY INADEQUATE ONE DONE BY LOCAL KERN COUNTY OFFICIALS CLAIMED THIS MINIEPIDEMIC HAD NOTHING TO DO WITH PESTICIDES ITS DIRECTOR QUIT IN PROTEST ANOTHER STUDY DONE BY THE STATE FIVE YEARS AGO DID IN FACT POINT TO PESTICIDES AS A PROBABLE CAUSE BUT SINCE THEN NO ACTION FEDERAL STATE OR LOCAL HAS BEEN TAKEN MY OWN CONCLUSION AFTER MONTHS OF REPORTAGE IS THAT THE FAMILIES OF MCFARLAND HAVE A LOT LESS CLOUT THAN THE INDUSTRY THAT DOMINATES POLITICS THERE UNTIL 1972 ALL PESTICIDES WERE REGISTERED BY THE AGRICULTURE DEPARTMENT BASED ON THE CHEMICALS' ABILITY TO GROW MORE FOOD AND KILL THE PESTS THE QUESTION OF WHETHER ANY POTENTIAL HEALTH EFFECTS MAY RESULT FROM THEIR USE WAS NOT CONSIDERED CONGRESS RECOGNIZED THIS CONFLICT OF INTEREST 20 YEARS AGO AND ORDERED THE EPA TO REREGISTER ALL PESTICIDES THEN ON THE MARKET FOR POTENTIAL HEALTH RISKS BY 1977 TO DATE ONLY 3 OF THOSE CHEMICALS IN MAJOR FOOD USE FOR UP TO 40 YEARS HAVE BEEN CERTIFIED SAFE BY THE EPA ONE POSSIBLE REASON FOR THIS LACK OF URGENCY IN GETTING HEALTH DATA ON THESE SOCALLED OLD CHEMICALS IS THAT ALL THE HEALTH AND SAFETY TESTS ARE DONE BY THE COMPANIES THAT MANUFACTURE AND PROFIT FROM THEM THE EPA DOES NOT EVEN HAVE THE CAPABILITY OF REPLICATING INDUSTRY TESTS AND THE AGENCY REJECTS ONETHIRD OF ALL STUDIES THE INDUSTRY SUBMITS OF COURSE THESE STUDIES HAVE TO BE DONE AGAIN AND THAT TAKES YEARS WHILE THE CHEMICAL IS ALLOWED TO STAY ON THE MARKET EVEN WITH ALL THIS DAWDLING THE INDUSTRY'S OWN DATA HAS ALERTED THE EPA THAT AT LEAST 65 OF THE REGISTERED AGRICULTURAL CHEMICALS WIDELY USED ON FOOD CROPS MAY BE CANCERCAUSING AGENTS HOW MANY MORE WILL BE FOUND AS THE REREGISTRATION PROCESS INCHES ALONG IS ANYBODY'S GUESS IN FACT THE EPA HAS BEEN TRYING FOR MORE THAN A DECADE TO GET SOME OF THE WORST ACTORS OFF THE MARKET BUT THE COMPANIES ARE ABLE TO FIGHT FOR THEIR RIGHT TO SELL THESE PROVEN CARCINOGENS BECAUSE FEDERAL LAW AS WRITTEN WITH THE HELP OF GENEROUS LOBBYISTS SAYS THESE PESTICIDES ARE INNOCENT UNTIL PROVEN GUILTY THE BURDEN OF PROVING THEIR DANGER TO THE PUBLIC HEALTH RESTS ON THE EPA NOT ON THE COMPANIES MR AVERY'S ASSERTION THAT REDUCING OUR USE OF CHEMICALS WOULD LEAD TO AN APOCALYPTIC FAMINE IS A VARIATION ON THE TIRED ARGUMENT TROTTED OUT ANY TIME A SPECIFIC CHEMICAL IS IN DANGER OF BEING BANNED MR AVERY'S SUPPORTERS CLAIM CHEMICALS ARE THE ONLY WAY TO SUSTAIN OUR AGRICULTURE MIRACLE BUT TAKE A CLOSER LOOK AT WHAT THAT MIRACLE HAS PRODUCED CHEMICALS DO MEAN BOUNTIFUL HARVESTS TO BE SURE BUT BOUNTY USUALLY MEANS LOW PRICES AND HARD ECONOMIC TIMES FOR FARMERS NOT TO MENTION HIGHER TAXES FOR CITIZENS AMERICA PRODUCES SO MUCH FOOD ACTUALLY THAT THE FEDERAL GOVERNMENT PAYS FARMERS TO KEEP OUT OF PRODUCTION AN AREA OF FARMLAND THAT IS LARGER THAN THE STATE OF WYOMING THE WORLD HAS PLENTY OF FOOD WHAT LEADS TO FAMINE IS ITS UNEVEN DISTRIBUTION SKEWERED IN MANY INSTANCES BY PROTECTIONISM IE SUBSIDES IN THE FORM OF PRICE SUPPORTS AND HOW WELL HAS THE CHEMICAL SOLUTION WORKED THIRTY YEARS AGO THERE WERE ABOUT 100 SPECIES OF AGRICULTURE INSECTS RESISTANT TO PESTICIDES TODAY THERE ARE MORE THAN 500 AND HOW WELL HAVE WE PROTECTED OUR FRUITS AND VEGETABLES WITH THIS BOMBARDMENT OF TOXINS THIRTY YEARS AGO WE WERE LOSING ONLY 7 OF OUR HARVEST TO PESTS TODAY THE BUGS' SHARE OF OUR AGRICULTURAL MIRACLE HAS GROWN TO 13 OUR BROADCAST WAS NOT A BLANKET ATTACK ON PESTICIDES WE WANTED TO FIND OUT WHY FOR ALL THE CONCERN EXPRESSED BY GOVERNMENT AND INDUSTRY FOR THE MOST VULNERABLE AMONG US NO ONE HAS YET TO ESTABLISH WHAT LONGTERM EFFECTS THERE MAY BE FROM THE PESTICIDES IN OUR CHILDREN'S DAILY DIET PERHAPS THE DISTINGUISHED COMMITTEE ASSEMBLED BY THE NATIONAL ACADEMY OF SCIENCES LIBERATED NOW FROM POLITICAL AND INDUSTRY SUBVERSION WILL AT LAST TELL US UNTIL THEN THE BLANKET ASSURANCES OF PESTICIDE ADVOCATES LIKE MR AVERY THAT OUR CHILDREN'S FOOD SUPPLY IS AS SAFE AS IT COULD BE ARE SIMPLY IRRESPONSIBLE MR AVERY'S ARTICLE DIDN'T GO FAR ENOUGH WE ARE ALL LED TO BELIEVE THAT IT IS PRACTICAL AND IN THE PUBLIC INTEREST TO USE THE STANDARD ON PREVENTING EXPOSURE TO ANY POLLUTANT THAT WOULD RESULT IN AN ADDITIONAL CANCER RISK OF ONE IN A MILLION DURING A LIFETIME OF EXPOSURE THIS IS BEING DEBATED WIDELY AND IS CURRENTLY PROPOSED IN A BILL IN THE NEW JERSEY LEGISLATURE WHILE THIS KIND OF STANDARD MAKES GOOD PRESS AND FILLS ONE WITH A FEELING OF TOUGH REGULATION WHAT ARE THE ACTUAL FACTS DR BRUCE AMES OF THE UNIVERSITY CALIFORNIA AT BERKELEY IN HIS STUDY OF NATURAL PESTICIDES THAT ARE RODENT CARCINOGENS JANUARY 1991 FOUND THAT THE NATURAL CARCINOGEN LEVELS IN FOODS ARE IN FACT FAR HIGHER THAN THE LEVEL UNDER WHICH MANY ENVIRONMENTAL REGULATIONS WOULD HAVE US OPERATE OUR FACTORIES A SHORT LIST OF EXAMPLES APPLES ARE ABOUT 50 TO A MILLION IN RODENT CARCINOGENS PARSLEY IS ABOUT 14 TO A MILLION IN RODENT CARCINOGENS MUSHROOMS ARE ABOUT 11 CAULIFLOWER IS ABOUT 12 TO A MILLION HORSERADISH IS ABOUT 4500 TO A MILLION PEPPER IS ABOUT 100 TO A MILLION HONEY IS ABOUT 15 TO A MILLION COFFEE IS ABOUT 1800 TO A MILLION THE LIST GOES ON AND ON THE REALITY IS THAT CARCINOGENS ARE A NATURAL BACKGROUND AND THAT THE OLD AXIOM NOTHING TO EXCESS STILL APPLIES I GUESS THE SADDEST PART OF THE WHOLE PROCESS TO ME IS THAT WHILE FARMERS MINERS AND LOGGERS FIGHT BACK AGAINST OVERREGULATION BUSINESSMEN SEEM TO SURRENDER LIKE LEMMINGS TO THE FORCES OF ECONOMIC DESTRUCTION EVEN IF IT'S BAD SCIENCE INCREDIBLY MR AVERY SHOWS THE SAME BIAS PBS IS NOTED FOR MISS CARSON BLAMED FARM CHEMICALS FOR WILDLIFE LOSSES THAT WE NOW KNOW WERE DUE TO LOST HABITAT AND TO INDUSTRIAL POLLUTANTS LIKE PCBS AND MERCURY HE WRITES MR AVERY MAY BE AN EXPERT ON GLOBAL FOOD ISSUES BUT HE'S FAR OFF BASE WITH REGARD TO THE ENVIRONMENTAL EFFECTS OF PCBS I CHALLENGE HIM TO NAME ANY VALID STUDY SHOWING ANY ACTUAL WILDLIFE LOSSES ANYWHERE ATTRIBUTABLE TO PCBS THE ONLY IMPACT OF PCBS ON WILDLIFE I'M AWARE OF IS A SIGNIFICANT INCREASE IN FISH POPULATIONS IN THE HUDSON RIVER DUE TO COMMERCIAL FISHING BANS IRRATIONAL ATTITUDES ABOUT PESTICIDES ARE DWARFED BY THE UNFOUNDED INDOCTRINATION WE HAVE ALL RECEIVED FOR MORE THAN 20 YEARS ON PCBS SEE RELATED LETTER LETTERS TO THE EDITOR LAYING ODDS ON PCB CONTENT WSJ APRIL 22 1993 9304130082 9304220191 930422 DIVIDEND NEWS CHARTER FSB BANCORP CHARTER FSB BANCORP THE RANDOLPH NJ HOLDING COMPANY FOR CHARTER FEDERAL SAVINGS BANK OF RANDOLPH SAID THE BOARD INCREASED THE QUARTERLY DIVIDEND 33 TO 20 CENTS A SHARE FROM 15 CENTS PAYABLE MAY 7 TO SHARES OF RECORD APRIL 30 CHARTER HAS ABOUT 19 MILLION SHARES OUTSTANDING 9304220190 930422 LEISURE & ARTS MEN AND DOGS MAKE THEIR WAY ACROSS THE ARCTIC BY NEIL ULMAN GREAT SLAVE LAKE CANADIAN NORTHWEST TERRITORIES DOGSLED DRIVERS VALUE BRAINS IN A LEAD DOG BUT PATCHES IS ENTIRELY TOO SMART ONCE AGAIN SHE HAS SLIPPED HER HARNESS AND IS BOUNDING FREE OUT FRONT OF THE WHOLE EASTBOUND CARAVAN SHE STOPS AND TURNS TO BARK AT HER STRAINING COLLEAGUES CHALLENGING THEM TO CATCH HER THEN SCAMPERS ON AGAIN THE FOUR SLEDS 35 DOGS AND EIGHT MEN FOLLOWING PATCHES ARE OFF ON A TRAINING EXPEDITION FOR THE INTERNATIONAL ARCTIC PROJECT 1995 CROSSING OF THE NORTH POLE FROM RUSSIA TO CANADA THEIR ROUTE BEGINS THIS YEAR ON THE WHITE 11000SQUAREMILE SURFACE OF NORTH AMERICA'S FIFTH LARGEST LAKE SPRUCEFRINGED COVES DENT THE SHORELINE AND SPRUCECOVERED ISLANDS SOME WITH SOFT BREADLOAF SILHOUETTES OTHERS RISING IN SHEER 400FOOT GRANITE CLIFFS BREAK UP THE NEAR AND DISTANT HORIZON EXHILARATED BY THE CHILL AID SCENERY GLAD TO BE UNDER WAY THE MEN SMILE AS 48YEAROLD WILL STEGER CAPTURES PATCHES WITH A FLYING TACKLE AND REHARNESSES HER WILL WHO DROVE DOGSLEDS TO THE NORTH POLE IN 1986 AND THEN ACROSS ANTARCTICA VIA THE SOUTH POLE IN 1990 WILL LEAD THE 1995 ODYSSEY AS HE LEADS THIS ONE ALSO ON THE EXPEDITION ARE THREE ANTARCTIC VETERANS VICTOR BOYARSKY THE 42YEAROLD RUSSIAN POLAR EXPLORER JOHN STETSON A 35YEAROLD AMERICAN DOG TRAINER AND MARTIN HIGNEL 31 FORMERLY OF THE BRITISH ANTARCTIC SURVEY COMPLETING THE TEAM ARE THOMAS CLIPPING A 32YEAROLD NATIVE TRAPPER FROM THE PEOPLE WHO CALL THEMSELVES DENE AND ULRIK VEDEL 26 A FORMER OFFICER IN THE DANISH ARMY'S GREENLAND DOGSLED PATROL A PHOTOGRAPHER AND I ARE ALONG FOR THE FIRST 160 MILES TO SNOWDRIFT A DENE VILLAGE OF 263 THE OTHERS WILL CONTINUE FOR 1000 MILES ACROSS THE ARCTIC BARRENS TO HUDSON'S BAY ARRIVING THIS WEEK AS THE EXPEDITION SETS OUT THE SLED LASHINGS BULGE SKIS TENTS STOVES FUEL CANDLES SLEEPING BAGS SPARE CLOTHING SHOVELS AXES RIFLES AND SHOTGUNS SPARE ROPE WIRE AND DOG HARNESSES MAPS RADIO GEAR AND A SATELLITENAVIGATION RECEIVER MAKE LOADS OF 800 POUNDS PER SLED LARGE BOXES HOLD DOG FOOD IN PELLETS AND BRICKS FOR US THERE ARE SACKS OF NOODLES BEANS RICE CHEESE OATMEAL BUTTER POWDERED MILK DRIED FRUIT HIGHCARBOHYDRATE CANDY BARS AND CHOCOLATE TREATS LOCAL WELL WISHERS HAVE ADDED SOME FROZEN CARIBOU AND A TASTY ARCTIC TROUT CALLED CHAR AFTER A WEEK OF INACTION THE DOGS ARE WILD WITH ENERGY EAGER TO BE OFF BARKING TAILS WAGGING PULLING STRONGLY AND DISINCLINED TO PAY MUCH ATTENTION TO THE SHOUTS OF THEIR DRIVERS FOR HER ANTICS PATCHES IS DEMOTED TO WHEEL DOG NEAREST THE SLED AND PANDA WHO PULLED WILL 3741 MILES ACROSS ANTARCTICA IS PROMOTED TO LEAD STRUNG OUT AT QUARTERMILE INTERVALS WE FOLLOW A TRAIL SOUTHEAST ALONG THE SHORE WILL HAS ASSIGNED THE LEAD POSITION TO JOHN WHO PULLS OFF THE TRAIL INTO AN ISLAND COVE AT SIX O'CLOCK TO MAKE CAMP WE RUN OUT LONG WIRES TO NEARBY TREES CLIP THE DOGS FOR THE NIGHT TO THE RINGS SPACED AT SIXFOOT INTERVALS AND FEED THEM BY 7 PM THE TEMPERATURE IS NEARING ZERO AND WE ARE ZIPPED IN OUR TENTS WHEN THE ALARM GOES OFF AT 6 AM FROST LINES THE LOWER MARGINS OF THE TENT AND THE FLY OVER OUR COOKSTOVE IN THE VESTIBULE I WRIGGLE THE TOP HALF OF MY BODY OUT OF MY SLEEPING BAG AND INTO A PARKA THEN EXTRACT MY LEGS AND PULL ON POLARTEC PANTS AFTER SERVING THE DAY'S FIRST TEA AT A PALE BLUE AND PINK DAWN I STUFF MORE ICE INTO THE KETTLE AND BOIL IT FOR OATMEAL THIS ROUTINE IS DRAWN OUT DAILY TO ALLOW TIME FOR WILL AND ME TO WRITE AS THE SUN RISES AND THE STOVE WARMS THE TENT INTO THE 40S CHEERED BY THE FINE TRAVEL CONDITIONS WILL CRIES HUP TO THE DOGS AND WE ARE OFF AND RUNNING BUT PROGRESS IS SHORTLIVED LOOKING FOR A SHORTCUT DESCRIBED BY MUSHERS IN YELLOWKNIFE WE PLUNGE INTO WOODS WHAT SEEMS AT FIRST LIKE EASY GOING BECOMES TOO NARROW AND TWISTING FOR NINEFOOT SLEDS AND 30FOOT DOG TEAMS THE SLEDS CAPSIZE IN CREEK BEDS RAM INTO ROCKS AND GET STUCK ON TREE TRUNKS SUSPICION GROWS THAT WE ARE LOST BUT WITH NO ROOM TO TURN AROUND WE MUST KEEP GOING FINALLY WE REACH A SMALL LAKE CONSULT OUR MAP AND SATELLITE RECEIVER AND FIND THAT WE ARE HEADED APPROPRIATELY FOR DEFEAT LAKE IN THE INTERIOR WE TURN AROUND AND FIGHT OUR WAY BACK FOUR HOURS LOST WILL'S MOOD HAS BEEN BETTER WE CAMP AFTER A VERY SHORT DAY'S RUN AS WE SET OUT THE DOGS' GANGLINES TWO DENE HUNTERS PULL UP ON SNOWMOBILES OFFERING MEAT THE CARIBOU ARE MIGRATING NOW FROM THEIR WINTER BREEDING GROUNDS IN THE SOUTH TO THE NORTHERN TUNDRA WHERE THEY WILL DELIVER THEIR YOUNG AND SPEND THE SUMMER THE DENE GENEROUS AND RAISED IN A TRADITION OF SHARING ARE PROUD TO SUPPLY US FREE WITH ALL WE CAN EAT THE TEMPERATURE HOLDS AT A WARM 20 DEGREES OVERNIGHT AND MORNING DAWNS WINDY PROVING THAT EVEN THE MOST EXPERIENCED ARCTIC VETERANS CAN ERR A 30KNOT GUST SNATCHES VICTOR AND ULRIK'S TENT AS THEY ARE TAKING IT DOWN LIKE A GIANT BLUEANDWHITE TUMBLEWEED IT BOUNCES OVER THE SNOW FOR A MILE FINALLY FETCHING UP IN TREES ASHORE WHERE ITS PURSUERS RECOVER IT POLES MIRACULOUSLY UNDAMAGED THE CHASE HAS BEEN COMIC BUT THE IMPLICATIONS SERIOUS IT'S A GOOD LESSON SAYS WILL LOSING A TENT CAN BE FATAL IN THE ARCTIC AT DAWN ON THE FOURTH DAY JOHN SIGHTS FOUR WOLVES NEAR OUR CAMP ON A SMALL ISLAND IN THE HEARNE CHANNEL THEY ARE HUNTING THE CARIBOU WHICH START TO APPEAR IN SMALL HERDS RUNNING IN FRONT OFUS EXCITING THE DOGS TO FASTER SPEEDS EVEN WHEN THE CARIBOU ARE OUT OF SIGHT THE DOGS CAN SMELL THEM TO WINDWARD THEY PEER IN THE DIRECTION OF THE SCENT PRICKING UP THEIR EARS AND QUICKENING THEIR PACE THE TEMPERATURE IS DROPPING AGAIN PROMISING FASTER TRAVELING BUT NOW WE STRIKE THE FIRST OF MANY PRESSURE RIDGES THESE FORM WHERE THE FIVEFOOTTHICK ICE HAS CRACKED AND THE WIND HAS PUSHED THE EDGES UPWARD SQUEEZING SLABS OF ICE 10 FEET INTO THE AIR WORSE THE RECENT THAW HAS ALLOWED THE WATER NORMALLY FORCED THROUGH THESE CRACKS TO STAND IN DEEP GREEN POOLS COVERED ONLY BY A TREACHEROUS SKIM THE RIDGES ARE MILES LONG AND WE MUST SCOUT EACH ONE FOR A CROSSING THEN WE LEVEL THE CREST OF ICE AND SNOW ATOP THE RIDGE WITH AXES AND SHOVELS AND HELP THE STRAINING DOGS BY PUSHING THE SLEDS OVER THE TOP FIGURE AN HOUR A RIDGE SAYS WILL CALCULATING THE DELAY ON THE FOURTH NIGHT WE CAMP NEAR A PRESSURE RIDGE ON ICE THAT CRACKS BOOMS GROANS AND RUMBLES THROUGH THE NIGHT WOLVES HOWL IN THE DISTANCE COMBINED WITH FATIGUE THE TOTAL EFFECT IS STRANGELY SOOTHING A SATISFYING LULLABY AT LUNCH ON THE FIFTH DAY A FEW FLAKES OF SNOW DRIFT INTO OUR SOUP WITHIN A COUPLE OF HOURS IT IS SNOWING HARD AND THE VISIBILITY IS DOWN TO A QUARTER MILE AS WE WAIT FOR JOHN AND VICTOR TO SCOUT AN ICE RIDGE AT THE END OF BLANCHET ISLAND THE DELIGHT OF ALL THIS OVERTAKES ULRIK WHO SKIS UP THE LINE WILL HE SAYS IN HIS THICK DANISH ACCENT I JUST WANT TO TELL YOU HOW GLAD I AM TO BE HERE MY LAST TWO MONTHS IN GREENLAND I KEEP WONDERING IF I WOULD EVER DO THIS AGAIN NOW I AM SO HAPPY FURTHER WORDS FAIL HIM WE CAMP AND THE SNOW MAKES A SIZZLING SOUND ON THE TENT FLY ALL NIGHT BY MORNING ABOUT FOUR INCHES HE DRIFTED AROUND US AND THE DOGS WHO ARE CURLED CONTENTEDLY IN THE LITTLE DEPRESSIONS THEIR BODIES HAVE FORMED THE SNOW STOPS AS WE BREAK CAMP AND THE SKY CLEARS TO A BRIGHT BLUE FORTY MILES TO THE NORTHEAST WE CAN SEE THE SNOWCAPPED PETHEI PENINSULA REACCUSTOMED TO THEIR WORK THE DOGS ARE RUNNING SMOOTHLY SAVING WILL'S FADING VOICE THE 13DEGREE TEMPERATURE IS DELIGHTFUL IN THE SUNSHINE WE HAVE LEFT THE PRESSURE RIDGES BEHIND US THE SNOW IS GOOD AND WE COVER OVER 30 MILES WE PULL INTO SNOWDRIFT EARLY THE FOLLOWING AFTERNOON MANY DENE ARE OUT TO MEET US WITH CAMERAS NONE RUN DOGSLEDS IN THIS VILLAGE ANY MORE AND WE ARE A CURIOSITY AS A CHILD I WONDERED HOW INDIANS LIVED IN TEEPEES COOKED OVER CAMPFIRES AND HUNTED WITH BOWS AND ARROWS NOW A LITTLE DENE BOY RUNS ALONGSIDE OUR SLED LOOKING UP AT US WITH WIDE BROWN EYES DO YOU LIVE IN THE BUSH HE ASKS IT SEEMS A SHAME TO STOP HERE AND I ENVY MY COMPANIONS WHO ARE TREKKING ON AS WILL SAYS OF WINTER TRAVEL ONCE YOU GET INTO THE RHYTHM OF IT IT'S OK MR ULMAN IS A NEWS EDITOR IN THE JOURNAL'S NEW YORK BUREAU 9304220189 930422 AMERITECH CORP BELLSOUTH SEE GAIN IN CUSTOMER LINES BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL TWO REGIONAL BELL COMPANIES AMERITECH CORP AND BELLSOUTH CORP BENEFITED FROM STRONG GROWTH IN CUSTOMER TELEPHONE LINES AND CONTINUING COSTCUTTING IN THE FIRST QUARTER BUT ONETIME CHARGES CUT NET INCOME AMERITECH REPORTED NET OF 300 MILLION OR 111 A SHARE AGAINST A LOSS OF 141 BILLION OR 528 A SHARE IN THE YEAREARLIER QUARTER WHEN IT TOOK A NET CHARGE OF 174 BILLION FOR ADOPTION OF NEW ACCOUNTING RULES EXCLUDING ONETIME ITEMS IN BOTH THE 1993 AND 1992 QUARTERS AMERITECH'S PROFIT ROSE 92 TO 3373 MILLION OR 125 A SHARE FROM 309 MILLION OR 116 A SHARE REVENUE ROSE TO 28 BILLION FROM 269 BILLION THE CHICAGO COMPANY PICKED UP 483000 NEW CUSTOMER TELEPHONE LINES OVER THE PAST YEAR BRINGING ITS TOTAL TO 172 MILLION LINES IN SERVICE AT THE END OF MARCH THE CELLULAR TELEPHONE BUSINESS CONTINUED TO POST STRONG SUBSCRIBER GROWTH WITH A 308 INCREASE IN THE PAST YEAR TO 646000 BELLSOUTH BASED IN ATLANTA WAS POUNDED BY BRUTAL WINTER WEATHER NET FELL TO 4112 MILLION OR 83 CENTS A SHARE FROM 4609 MILLION OR 94 CENTS A SHARE THE YEAR BEFORE WITHOUT A 25 MILLION CHARGE RELATED TO THE STORMS AND A FAVORABLE TAX SETTLEMENT IN THE 1992 PERIOD EARNINGS ROSE A MODEST 35 TO 4362 MILLION OR 88 CENTS A SHARE FROM 4214 MILLION OR 86 CENTS A SHARE BELLSOUTH ALSO REPORTED GROWTH IN CUSTOMER TELEPHONE LINES WHICH ROSE 34 OVER THE YEAR TO 189 MILLION AT THE END OF MARCH THE COMPANY HAD A RECORD QUARTERLY INCREASE OF 233000 ACCESS LINES IT ADDED 43 MORE SUBSCRIBERS TO ITS US CELLULAR PHONE NETWORKS OVER THE PAST YEAR BRINGING THE TOTAL TO 119 MILLION THE COMPANY'S REVENUE ROSE 25 TO 383 BILLION WHILE OPERATING EXPENSES INCLUDING THOSE RELATED TO THE WINTER STORMS GREW 42 9304220188 930422 INTERNATIONAL SENDING TROOPS TO BOSNIA IS OPPOSED BY 52 IN POLL WASHINGTON WHILE THE WHITE HOUSE CONSIDERS MORE AGGRESSIVE ACTION IN BOSNIA THE AMERICAN PUBLIC REMAINS DEEPLY SKEPTICAL OF ANY US MILITARY INVOLVEMENT IN A NEW WALL STREET JOURNAL/NBC POLL 52 OF THE RESPONDENTS OPPOSED SENDING US TROOPS TO THE FORMER YUGOSLAVIA TO HELP STOP THE CIVIL WAR THERE WHILE 35 FAVORED SUCH A COURSE DESPITE MOUNTING EVIDENCE OF SERBIAN AGGRESSION AND NEW CALLS ON CAPITOL HILL FOR AMERICAN ACTION THE PUBLIC'S OPPOSITION TO US MILITARY INVOLVEMENT IN BOSNIA HASN'T SHIFTED SIGNIFICANTLY WITH TIME PRESIDENT CLINTON CONTINUES TO RULE OUT THE USE OF US GROUND TROOPS IN BOSNIA EXCEPT TO ENFORCE A NEGOTIATED PEACE SETTLEMENT SUCH A SETTLEMENT APPEARS UNLIKELY AND THE ADMINISTRATION IS NOW CONSIDERING A RANGE OF LIMITED FORCE OPTIONS INCLUDING LIFTING THE ARMS EMBARGO ON BOSNIA'S MUSLIMLED GOVERNMENT AND USING AIR STRIKES TO SILENCE SERBIAN ARTILLERY CUT SERBIAN SUPPLY LINES AND PROTECT BESIEGED BOSNIAN ENCLAVES UNTIL NOW THE NATION'S EUROPEAN ALLIES AND THE PENTAGON HAVE OPPOSED ALL THESE MOVES 9304220187 930422 INTERNATIONAL MAGISTRATES SEEK TO QUERY SEN BENETTON ON FIORUCCI MILAN MAGISTRATES ASKED THE ITALIAN SENATE TO WAIVE PARLIAMENTARY IMMUNITY FOR FASHION TYCOON AND ITALIAN SEN LUCIANO BENETTON SO THEY CAN BEGIN INVESTIGATING ALLEGED IRREGULARITIES IN THE BANKRUPTCY OF A FORMER BENETTON GROUP SPA MINORITY HOLDING THE REQUEST IS APPARENTLY UNRELATED TO ITALY'S POLITICALCORRUPTION SCANDALS A BENETTON SPOKESWOMAN SAID PARLIAMENT WANTS TO QUESTION MR BENETTON ON HIS ROLE AS A DIRECTOR OF CASUALWEAR MAKER FIORUCCI SPA BEFORE FIORUCCI DECLARED BANKRUPTCY IT'S THE NORMAL PROCESS OF INVESTIGATING A BANKRUPTCY THEY TALK TO ALL THE FORMER DIRECTORS BUT THEY CAN'T QUESTION MR BENETTON UNTIL PARLIAMENT LIFTS IMMUNITY SHE SAID BENETTON OWNED A 49 STAKE IN FIORUCCI FROM 1982 TO 1987 BENETTON SOLD THE STAKE IN 1987 TO ITALIAN BUSINESSMAN MASSIMO AKI NUHI FIORUCCI SUBSEQUENTLY WENT INTO COURTSUPERVISED CHAPTER 11 BANKRUPCTY BENETTON SAID THE BENETTON SPOKESWOMAN SAID THAT MR BENETTON SERVED ON THE FIORUCCI BOARD FROM 1985 TO 1987 BUT THAT BENETTON NEVER HAD ANY OPERATIONAL RESPONSIBILITY FOR FIORUCCI 9304220186 930422 JCB TO OPEN US BANK TO ISSUE CREDIT CARDS TOKYO JCB CO JAPAN'S TOP CREDITCARD COMPANY SAID IT WILL OPEN A BANK IN LOS ANGELES NEXT MONTH TO ISSUE CARDS IN THE US THE MOVE IS PART OF JCB'S STRATEGY TO BUILD AN INTERNATIONAL NETWORK AND EVENTUALLY TURN ITS CARD INTO A WORLDWIDE SERVICE TO RIVAL VISA AND MASTERCARD JCB SAID IT AIMS TO ISSUE 100000 CARDS TO CONSUMERS IN THE US IN THE FIRST THREE YEARS FOCUSING ON EMPLOYEES OF JAPANESE COMPANIES AND THEIR US AFFILIATES IT ALSO SAID IT IS CONSIDERING JOINING WITH US BANKS TO OFFER JCB CARDS JCB'S NEW BANK JCB BANK NA WILL BE BASED IN LOS ANGELES AND CAPITALIZED AT 3 MILLION WHOLLY OWNED BY JCB INTERNATIONAL CREDIT CARD CO A LOS ANGELES SUBSIDIARY OF THE PARENT THE BANK WILL SPECIALIZE IN THE CREDITCARD BUSINESS JCB SAID IT HAS RECEIVED PRELIMINARY APPROVAL FOR ITS BANK CHARTER FROM US BANKING AUTHORITIES AND WILL BEGIN OPERATIONS IN EARLY MAY JAPAN'S LARGEST ISSUER OF CONSUMER CREDIT CARDS JCB HAS 262 MILLION CARD HOLDERS AND 26 MILLION MEMBER RETAIL OUTLETS INCLUDING 400000 OUTLETS IN THE US 9304220185 930422 LIFE AFTER THE PLAYING FIELD IS THE PITS FOR SOME ATHLETES BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO WHEN ABE GIBRON THE LEGENDARY OFFENSIVE LINE COACH FOR THE CHICAGO BEARS PULLED HIS BEST PLAYER ASIDE AFTER PRACTICE ONE DAY HE HAD TWO WORDS OF ADVICE PORK BELLIES HE TOLD ME TO BUY THEM SAYS GEORGE SEALS FORMER ALLPRO LINEMAN FOR THE BEARS AND NOW A COMMODITY TRADER AT THE CHICAGO BOARD OF TRADE HE SAID THE PRICE OF PORK BELLIES WAS GOING TO THE MOON WHILE MR SEALS ACCEPTED HIS COACH'S FOOTBALL SUGGESTIONS AS GOSPEL HE DECIDED TO CONSULT A FRIEND WHO WAS A COMMODITY TRADER BEFORE ACTING ON THE PORKBELLY TIP ON THE TRADER'S ADVICE MR SEALS BOUGHT A SOYBEAN FUTURES CONTRACT INSTEAD IN WHAT PROVED TO BE A PRESCIENT BET THAT YEAR 1973 WITNESSED THE SOCALLED GREAT SOVIET GRAIN ROBBERY IN WHICH THE SOVIET UNION UNEXPECTEDLY BOUGHT HUGE SHIPMENTS OF SOYBEANS FROM US FARMERS AND SPAWNED A BULL MARKET AT THE BOARD OF TRADE MR SEALS WAS HOOKED LATER THAT YEAR HE GAVE UP A NEW THREEYEAR CONTRACT TO PLAY FOR THE KANSAS CITY CHIEFS AND BOUGHT A MEMBERSHIP AT THE BOARD OF TRADE NOW 50 YEARS OLD MR SEALS IS A FIXTURE ON THE CBOT TRADING FLOOR ONE OF DOZENS OF FORMER ATHLETES WHO TRADE COMMODITIES IN THE TEEMING PITS OF THE NATION'S FUTURES MARKETS SOME OF THEM WERE COLLEGE ATHLETES WHO DIDN'T MAKE IT IN THE PROS WHILE OTHERS CAME TO COMMODITY TRADING AFTER DISTINGUISHED PROFESSIONAL SPORTS CAREERS MOST DRAW PARALLELS BETWEEN THE ROUGHANDTUMBLE WORLD OF COMMODITIES PITS AND THE RIGORS OF COMPETITIVE ATHLETICS JACK O'CALLAHAN IS A FORMER DEFENSEMAN FOR THE CHICAGO BLACKHAWKS HOCKEY TEAM AND A MEMBER OF THE MIRACLE ON ICE US AMATEUR TEAM THAT DEFEATED THE SOVIET UNION IN THE 1980 WINTER OLYMPICS NOW HE TRADES STOCKINDEX FUTURES AT THE CHICAGO MERCANTILE EXCHANGE IT'S AN INCREDIBLY PHYSICAL AGGRESSIVE PLACE WHERE YOU'RE COMPETING WITH 300 OTHER GUYS FOR PROFITS MR O'CALLAHAN SAYS THE MOST IMPORTANT THING IS TO KEEP YOUR HEAD NO MATTER HOW PHYSICAL IT GETS MOSTLY IT'S ABOUT NOT LOSING YOUR COMPOSURE WHEN SOMEBODY'S GOT AN ELBOW IN YOUR FACE THAT WAS EASY FOR ME BECAUSE I SPENT NINE YEARS IN THAT SITUATION IN THE NATIONAL HOCKEY LEAGUE MR O'CALLAHAN STARTED AT THE MERC WHILE HE WAS STILL PLAYING PRO HOCKEY WORKING SUMMERS AS A CLERK ON THE TRADING FLOOR WHEN HE FINISHED HIS HOCKEY CAREER HE BOUGHT A SEAT AT THE MERC FOR THE FIRST TWO YEARS HE DID WHAT IS KNOWN AS SCALPING TRADING OPPOSITE THE HUGE ORDERS THAT FLOW INTO THE MERC'S STANDARD & POOR'S 500 STOCKINDEX FUTURES PIT FROM BROKERAGE HOUSES AND MONEY MANAGERS IN NEW YORK AND ELSEWHERE HE SAYS HE EARNED ABOUT AS MUCH AS HE MADE PLAYING HOCKEY 130000 A YEAR NOW AT AGE 35 HE RUNS A BROKERAGE FIRM WITH ANOTHER FORMER PRO HOCKEY PLAYER THEY CALL THEIR COMPANY WHICH HANDLES FUTURES TRADES FOR INSTITUTIONAL INVESTORS BEANPOT FINANCIAL FUTURES INC AFTER A CELEBRATED BOSTON HOCKEY TOURNAMENT IN WHICH THEY BOTH PLAYED MR O'CALLAHAN SAYS PREPARATION IS VITAL IN THE NOTORIOUSLY VOLATILE STOCKINDEX FUTURES PIT WHERE HE WORKS YOU HAVE TO PREPARE CAREFULLY AS YOU WOULD FOR A 60MINUTE HOCKEY GAME HE SAYS YOU HAVE TO HAVE A PLAN YOU HAVE TO BE PHYSICALLY FIT YOU HAVE TO MAKE SURE YOU GET YOUR REST THE NIGHT BEFORE SO YOU CAN CONCENTRATE ON WHAT'S GOING ON GLEN BECKERT WAS AN ALLSTAR SECOND BASEMAN FOR THE CHICAGO CUBS IN THE 1960S AND '70S AFTER HE RETIRED A FRIEND ENCOURAGED HIM TO TRY GRAIN FUTURES TRADING AT THE CBOT HE BORROWED ENOUGH MONEY TO BUY A SEAT AND THEN HE STARTED TRADING IN THE WHEAT PIT BECAUSE HE HAD PLAYED BASEBALL IN CHICAGO THE 6FOOT2INCH MR BECKERT WAS EASILY RECOGNIZABLE TO THE GRAIN TRADERS ON THE CBOT FLOOR A NUMBER OF THE SPORTS FANS AMONG THEM HE SAYS WENT OUT OF THEIR WAY TO OFFER TRADING TIPS AND ADVICE IN THE FUTURES PITS PEOPLE WHO TRADE FOR THEIR OWN PROFITS SUCH AS THE 52YEAROLD MR BECKERT ARE CALLED LOCALS THEY EARN THEIR LIVING BY TRADING WITH FLOOR BROKERS WHO ARE HANDLING ORDERS FOR CLIENTS OUTSIDE THE EXCHANGE BROKERS TEND TO FORM BUSINESS RELATIONSHIPS WITH GROUPS OF LOCALS THEY KNOW AND PARCEL OUT THE FUTURES TRADES THEY BRING TO THE PIT TO THESE PEOPLE SUCH NETWORKS CAN MAKE IT HARD FOR A NEWCOMER TO BREAK INTO THE BUSINESS AT THE BEGINNING MR BECKERT SAYS BEING A FORMER BIG LEAGUER MADE IT EASIER FOR HIM TO GET TRADES JUST LIKE PROFESSIONAL SPORTS IT'S A DIFFICULT BUSINESS TO BREAK INTO HE SAYS MY BASEBALL CAREER HELPED A LOT LAZARUS CHAVEZ ONLY PLAYED A COUPLE OF SEASONS OF PROFESSIONAL FOOTBALL WITH THE NEW ENGLAND PATRIOTS AND THE MIAMI DOLPHINS YET WHEN HE CAME TO THE FLOOR OF THE NEW YORK MERCANTILE EXCHANGE AS A CLERK IN THE CRUDEOIL PIT HE FOUND THAT TRADERS IN THE PIT KNEW HIS NAME THEY FOLLOW SPORTS SO CLOSELY YOU WOULDN'T BELIEVE IT HE SAYS THEY KNOW WHICH COLLEGE ATHLETES WENT TO WHICH PRO TEAMS AND THEY KNOW WHO MADE IT AND WHO DIDN'T MR CHAVEZ 29 NOW WORKS AS A FLOOR BROKER FOR MERRILL LYNCH STANDING SHOULDERTOSHOULDER WITH DOZENS OF OTHER BELLOWING BROKERS WHO ARE ALSO TRYING TO FILL ORDERS FOR FUTURES TRADES HE SAYS HIS SIZE HE IS 6 FEET 2 INCHES AND 225 POUNDS HELPS HIM IN THE JOB IT'S NOT LIKE I REALLY STAND OUT HERE THOUGH HE SAYS EVERYBODY IS BIG HERE THEY PRETTY MUCH HAVE TO BE OR THEY DON'T LAST VERY LONG LONGEVITY IS ONE SIMILARITY BETWEEN PROFESSIONAL FOOTBALL AND LIFE IN THE PITS MR CHAVEZ SAYS YOU DON'T SEE MANY OLDER GUYS DOWN HERE HE SAYS IT'S A YOUNG MAN'S GAME JUST LIKE PRO BALL DESPITE THE PARALLELS BETWEEN TRADING AND ATHLETICS IT CAN NEVERTHELESS BE DIFFICULT TO MAKE THE TRANSITION FROM JOCK TO TRADER ESPECIALLY WHEN YOUR FELLOW TRADERS ARE PLAYING TRICKS ON YOU MATT SUHEY FORMER FULLBACK FOR THE CHICAGO BEARS ARRIVED ON THE CBOT'S TRADING FLOOR A FEW YEARS AGO AND MR SEALS WAS WAITING FOR HIM MATT CAME INTO THE SOYBEAN PIT AND HE WAS TRYING TO MAKE A TRADE MR SEALS SAYS I WAS SUPPOSED TO GIVE HIM A PRICE AND INSTEAD I WALKED UP TO HIM AND SHOUTED IF IT'S A 51 MICKEY I'M COMING DOWN ON THE MIDDLE LINEBACKER' AND FOR JUST A MOMENT HE COMPLETELY REVERTED BACK TO FOOTBALL I THINK HE WAS READY TO TAKE THE BALL AND RUN WITH IT 9304220184 930422 VOLUNTEER PROGRAMS AT COMPANIES SURVIVE DESPITE RESTRUCTURING NEW YORK DESPITE RECESSION AND RESTRUCTURINGS CORPORATE VOLUNTEER PROGRAMS SURVIVE PARTLY BECAUSE THEY HELP THE BOTTOM LINE SAYS A JOINT STUDY FROM THE CONFERENCE BOARD AND THE POINTS OF LIGHT FOUNDATION THE FOUNDATION A NONPROFIT GROUP FOUNDED DURING THE BUSH ADMINISTRATION AND SUPPORTED UNDER THE CLINTON ADMINISTRATION SEEKS TO MOTIVATE COMMUNITY SERVICE THE CONFERENCE BOARD IS A NONPROFIT INDUSTRYFUNDED BUSINESS RESEARCH GROUP IN THEIR FIRST SURVEY OF CORPORATE VOLUNTEER PROGRAMS THE GROUPS FOUND 92 OF EXECUTIVES SURVEYED ENCOURAGE EMPLOYEES TO BE INVOLVED IN COMMUNITY VOLUNTEER ACTIVITY AND 77 SAID SUCH PROGRAMS HELP CORPORATE GOALS EDUCATION PROGRAMS SUCH AS MENTORING GET TOP CORPORATE PRIORITY THE SURVEY FOUND THE MAJORITY OF CORPORATE VOLUNTEER PROGRAMS COST LESS THAN 10000 A YEAR TO ADMINISTER AND MANY COMPANIES REPORTED A SUBSTANTIAL RETURN WHEN MEASURING INDIRECT BENEFITS SUCH AS IMPROVED CORPORATE IMAGE ENHANCED TEAMWORK SKILLS MORALE AND JOB TRAINING SOME FIRMS CONSIDER COMMUNITY SERVICE IN WORKPERFORMANCE REVIEWS AND IN EVALUATING RESUMES RICHARD F SCHUBERT PRESIDENT OF POINTS OF LIGHT SAID PUBLIC SERVICE PROGRAMS CAN GIVE COMPANIES A COMPETITIVE EDGE A FACT THE FOUNDATION PLANS TO USE TO BROADEN PARTICIPATION BUT HE SAID MANY EXECUTIVES ARE RELUCTANT TO DIRECTLY RELATE VOLUNTEERISM TO THE BOTTOM LINE PARTLY BECAUSE THEY THINK IT'S UNSEEMLY AND PARTLY BECAUSE MEASURING THE BENEFIT IS DIFFICULT MR SCHUBERT NOTED THAT MORE THAN 50 OF THE COMPANIES SAID THEY SOMEWHAT AGREE TO THE CONNECTION OF VOLUNTEERISM TO PROFITABILITY A FIGURE HIGHER THAN HE EXPECTED BECAUSE OF THE RELUCTANCE TO TIE VOLUNTEERISM TO THE BOTTOM LINE BUT IT ISN'T AS HIGH AS MR SCHUBERT WOULD LIKE TO SEE TO GET VOLUNTEERISM TO RELATE TO RETURN ON ASSETS AND RETURN ON INVESTMENTS IS A SIGNIFICANT DEVELOPMENT WE INTEND TO PLAY ON MR SCHUBERT SAID IN AN INTERVIEW THE 454 SURVEY RESPONDENTS REPRESENTED ALL INDUSTRY SECTORS 9304220183 930422 WHO'S NEWS MARTIN MARIETTA FORMS SIX SECTORS IN RESTRUCTURING BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL MARTIN MARIETTA CORP RESTRUCTURING TO REFLECT ITS 305 BILLION ACQUISITION OF GENERAL ELECTRIC CO'S AEROSPACE UNIT FORMED SIX BUSINESS SECTORS AND NAMED PRESIDENTS FOR EACH A MARTIN MARIETTA SPOKESMAN SAID THE COMPANY WILL COVER RESTRUCTURING COSTS BY SETTING ASIDE A 500 MILLION RESERVE TO BE AMORTIZED OVER 40 YEARS RATHER THAN TAKING A BIG ONETIME CHARGE THE SPOKESMAN DIDN'T ELABORATE PETER ASERITIS AN ANALYST AT FIRST BOSTON CORP ESTIMATED THE AMORTIZATION COST PER QUARTER AT ABOUT 31 MILLION THE NEW SPACE ELECTRONICS AND INFORMATION GROUPS WILL BE BASED AT MARTIN MARIETTA'S CORPORATE OFFICES IN BETHESDA MD THE COMPANY SAID A MATERIALS GROUP WILL BE BASED IN RALEIGH NC AN ENERGY GROUP IN OAK RIDGE TENN AND A SERVICES GROUP IN CHERRY HILL NJ THERE HAD BEEN FOUR SECTORS ENERGY SYSTEMS MATERIALS ASTRONAUTICS AND ELECTRONICS INFORMATION AND MISSILES GROUP PRESIDENTS WILL BE PETER B TEETS 51 YEARS OLD SPACE THOMAS CORCORAN 48 ELECTRONICS PETER BRACKEN 51 INFORMATION STEPHEN P ZELNAK 48 MATERIALS CLYDE C HOPKINS 63 ENERGY AND MICHAEL F CAMARDO 51 SERVICES MESSRS HOPKINS ZELNAK TEETS AND BRACKEN HAD BEEN MARTIN MARIETTA SECTOR PRESIDENTS MR CORCORAN WAS VICE PRESIDENT OF THE GE AEROSPACE UNIT'S OPERATIONS DIVISION WHILE MR CAMARDO WAS PRESIDENT OF THE UNIT'S GOVERNMENT SERVICES BUSINESS MARTIN MARIETTA CHAIRMAN NORMAN R AUGUSTINE SAID THE RESTRUCTURING IS DESIGNED TO ALIGN SIMILAR BUSINESSES REDUCE OVERHEAD AND SPEED MARKET RESPONSE THE NEW INFORMATION GROUP COMBINES MARTIN MARIETTA'S AIR TRAFFIC AND INFORMATION SYSTEMS OPERATIONS WITH GE'S DATA SIMULATION SYSTEMS AND OTHER SIMILAR BUSINESSES EMPLOYMENT IS ABOUT 90000 ALTHOUGH MARTIN MARIETTA HAS SAID IT ANTICIPATES REDUCTIONS AS IT MERGES WITH THE FORMER GE AEROSPACE A SPOKESMAN WOULDN'T ESTIMATE THE SIZE OF LAYOFFS AND SAID THE DEFENSE CONTRACTOR HASN'T DECIDED WHICH PLANTS IF ANY IT WILL CLOSE A TRANSITION TEAM LED BY A THOMAS YOUNG MARTIN MARIETTA'S CHIEF FINANCIAL OFFICER AND EUGENE F MURPHY GE AEROSPACE'S FORMER PRESIDENT AND CHIEF EXECUTIVE IS OVERSEEING THE CONSOLIDATION A THOMAS YOUNG IS PRESIDENT AND CHIEF OPERATING OFFICER OF MARTIN MARIETTA CORP IN A WHO'S NEWS ARTICLE YESTERDAY HE WAS INCORRECTLY IDENTIFIED AS CHIEF FINANCIAL OFFICER 9304220182 930422 GEN VESSEY ATTACKS RUSSIAN DOCUMENT SUGGESTING VIETNAM DIDN'T FREE POWS BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON US GEN JOHN VESSEY SHOT HOLES IN A CONTROVERSIAL RUSSIAN DOCUMENT THAT SUGGESTS HUNDREDS OF US PRISONERS WERE NEVER FREED BY VIETNAM THE RETIRED GENERAL WHO IS PRESIDENT CLINTON'S SPECIAL ENVOY TO HANOI SAID THAT DURING A RECENT TRIP THERE HE WAS GIVEN AN AGED AND TATTERED HANDWRITTEN LEDGER THAT CHRONOLOGICALLY LISTED 381 AMERICAN AVIATORS WHO WERE PRISONERS OF WAR BEING HELD IN NORTH VIETNAM BETWEEN AUGUST 1964 AND FEBRUARY 1972 THE LEDGER APPEARS TO BE AUTHENTIC HE SAID AND ALONG WITH OTHER INFORMATION THE US HAS LONG SOUGHT IT RAISES QUESTIONS ABOUT MUCH OF THE RUSSIAN DOCUMENT THAT PURPORTS TO BE A TRANSLATION OF A SEPTEMBER 1972 REPORT TO VIETNAM'S POLITBURO SHOWING 624 AMERICAN AVIATORS IN NORTH VIETNAM AND A TOTAL OF 1205 OVERALL IN INDOCHINA WE KNOW THAT SOME OF THE FACTS THAT ARE ALLEGED IN THE RUSSIAN DOCUMENT ARE WRONG A LOT OF THE FACTS GEN VESSEY SAID YESTERDAY FOLLOWING A WHITE HOUSE MEETING WITH PRESIDENT CLINTON LATER AT A PENTAGON NEWS CONFERENCE HE ADDED THAT NONE OF THE POWS WHO RETURNED AS WELL AS NONE OF THE US SURVEILLANCE EVER SUGGESTED THAT HUNDREDS OF AMERICANS WERE BEING KEPT IN A SEPARATE PRISON SYSTEM AS THE RUSSIAN DOCUMENT IMPLIES BUT STEPHEN MORRIS AN ACADEMIC RESEARCHER WHO FOUND THE RUSSIAN DOCUMENT IN A MOSCOW ARCHIVE AND WHO HAS A LONG HISTORY OF ANTIPATHY TOWARD HANOI IS LIKELY TO KEEP FUELING CONTROVERSY IN AN INTERVIEW EARLIER THIS WEEK HE SAID THAT HE HAS BEEN TOLD THAT THE ORIGINAL VIETNAMESE DOCUMENT EXISTS IN A SEPARATE ARCHIVE IN MOSCOW GEN VESSEY WAS TOLD IN HANOI THAT THE RUSSIAN TRANSLATION IS A FABRICATION AND THAT THE VIETNAMESE DOCUMENT DOESN'T EXIST GEN VESSEY INDICATED THAT WHILE THE DOCUMENT MAY CONTAIN NUMEROUS INACCURACIES IT MAY WELL BE AUTHENTIC REGARDLESS THE 20YEAROLD BITTER BATTLE OVER US SOLDIERS WHO ARE STILL UNACCOUNTED FOR IS LIKELY TO CONTINUE POISONING USVIETNAMESE RELATIONS BEFORE THE RUSSIAN DOCUMENT SURFACED IN THE NEWS EARLIER THIS MONTH THE ADMINISTRATION WAS INCHING TOWARD IMPROVING TIES WITH HANOI INDEED MR CLINTON ALREADY HAD DECIDED TO DISPATCH GEN VESSEY TO REPORT ON VIETNAM'S COOPERATION BUT NOW MR CLINTON WHOSE ANTIVIETNAM WAR ACTIVITIES AS A STUDENT AND RECENT DECISIONS TO CUT DEFENSE SPENDING AND LIFT THE BAN ON GAYS IN THE MILITARY HAVE MADE ENEMIES IN THE PENTAGON IS LIKELY TO PROCEED WITH GREAT CAUTION I WOULDN'T LEAP FROM VESSEY'S ASSESSMENT OF HIS MISSION TO ANY POLICY CONCLUSION SAID A SENIOR US OFFICIAL WHAT HE BROUGHT BACK NEEDS TO BE EVALUATED MR MORRIS WHO HAS REGULARLY CRITICIZED VIETNAM'S COMMUNIST REGIME IN PUBLICATIONS INCLUDING ARTICLES IN THE WALL STREET JOURNAL'S EDITORIAL PAGES ALSO DOESN'T BELIEVE THE US SHOULD RUSH TOWARD NORMALIZATION OF RELATIONS MR MORRIS'S ANTIPATHY TOWARD VIETNAM WAS EVIDENT IN A 1985 ARTICLE IN THE ATLANTIC WHEN HE REFERRED TO HANOI'S 1979 INVASION OF CAMBODIA AND CHARGED THAT VIETNAM WAS RESPONSIBLE FOR A WIDESPREAD FAMINE THAT KILLED THOUSANDS OF CAMBODIANS HE EXPLAINED THAT THE INVASION PREVENTED THE PLANTING OF THE 1979 RICE CROP BUT MOST EXPERTS BELIEVE THAT THE INVASION ALSO PREVENTED A CONTINUATION OF THE SLAUGHTER OF PERHAPS A MILLION CAMBODIANS BY THEIR OWN GOVERNMENT MR MORRIS'S PASSIONS OVER VIETNAM ALSO WERE APPARENT 15 YEARS AGO WHEN HE WAS A GRADUATE STUDENT AT COLUMBIA UNIVERSITY HE JOINED A SMALL GROUP THAT DEFENDED HENRY KISSINGER DURING A CAMPUS PROTEST AGAINST APPOINTING THE FORMER SECRETARY OF STATE TO THE FACULTY LARGELY BECAUSE OF HIS ROLE IN THE WAR DOUGLAS PIKE DIRECTOR OF THE INDOCHINA STUDIES PROGRAM AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY SAID THE CONTINUING DISAGREEMENTS OVER THE ISSUE OF UNACCOUNTEDFOR US SOLDIERS IS LIKE THE KENNEDY ASSASSINATION NO MATTER WHAT YOU COME UP WITH SOMEONE WILL SAY IT'S FURTHER PROOF OF WHAT THEY WANT TO BELIEVE 9304220181 930422 ADMINISTRATION CUTS REQUEST FOR MONEY TO BAIL OUT THRIFTS WASHINGTON THE CLINTON ADMINISTRATION CUT ITS REQUEST FOR SAVINGSANDLOAN BAILOUT MONEY BY 3 BILLION IMPROVED RECOVERIES FROM SALE OF THE ASSETS OF FAILED THRIFTS WILL LET THE ADMINISTRATION TRIM ITS S&L FUNDING REQUEST TO 42 BILLION FROM 45 BILLION TREASURY SECRETARY LLOYD BENTSEN SAID IN A LETTER TO LEADERS OF CONGRESSIONAL BANKING COMMITTEES THE REDUCTION COULD HELP LESSEN SOME OF THE WIDE OPPOSITION TO THE REQUEST THE IMPROVEMENT MEANS THE RESOLUTION TRUST CORP HAS MORE UNALLOCATED RESERVES THAN WAS EXPECTED SO THE THRIFTCLEANUP AGENCY WILL BE ABLE TO RESUME DISPOSAL OF SOME FAILED THRIFTS EVEN BEFORE CONGRESS VOTES THE NEW BAILOUT FUNDS MR BENTSEN SAID HE SAID THE RTC WILL BE ABLE TO USE THE NEWFOUND MONEY TO DISPOSE OF ABOUT 10 OF THE 85 FAILED S&LS THAT IT CURRENTLY HOLDS BY SELLING THE INSTITUTIONS OR CLOSING THEM AND PAYING OFF THE DEPOSITORS THIS THRIFT RESOLUTION PROCESS HAS BEEN HELD UP FOR A YEAR FOR LACK OF CONGRESSIONAL FUNDING THE RTC SINCE 1989 HAS DISPOSED OF 654 S&LS ASSETS OF THE 85 IT CURRENTLY HOLDS HAVE A BOOK VALUE OF 96 BILLION THE CONGRESSIONAL GENERAL ACCOUNTING OFFICE HAS SUBSTANTIALLY COMPLETED ITS AUDIT OF RTC RESERVES CONFIRMING RTC CALCULATIONS SHOWING 5 BILLION MORE IN UNALLOCATED RESERVES THAN A YEAR EARLIER DUE TO LOW INTEREST RATES AND IMPROVING REAL ESTATE MARKETS SAID ROGER ALTMAN THE DEPUTY TREASURY SECRETARY AND INTERIM CHIEF EXECUTIVE OF THE RTC MR ALTMAN SAID IT'S PRUDENT TO LIMIT THE FUNDINGREQUEST REDUCTION TO 3 BILLION BECAUSE OF UNCERTAINTIES OVER RTC LOSS ESTIMATES AND THE ECONOMIC OUTLOOK THE 42 BILLION WOULD WIND UP THE MASSIVE S&L CLEANUP THAT BEGAN IN LATE 1988 BRINGING THE TOTAL COST TO MORE THAN 190 BILLION ABOUT 25 BILLION OF THE MONEY WOULD BE ALLOTTED TO THE RTC WHOSE AUTHORITY TO TAKE OVER INSOLVENT THRIFTS ENDS SEPT 30 THE REST WOULD GO TO THE S&L INSURANCE FUND OF THE FEDERAL DEPOSIT INSURANCE CORP WHICH WILL TAKE OVER AFTER SEPT 30 9304220180 930422 WHO'S NEWS MARVEL SELECTS ARAD TO BE CHIEF EXECUTIVE OF NEW FILM DIVISION NEW YORK MARVEL ENTERTAINMENT GROUP INC SAID IT NAMED AVI ARAD PRESIDENT AND CHIEF EXECUTIVE OF ITS NEW MARVEL FILMS DIVISION WHICH WILL DEVELOP ANIMATED AND LIVE ACTION TELEVISION AND FILM PROJECTS FEATURING CHARACTERS OWNED BY MARVEL MR ARAD 46 YEARS OLD A LONGTIME CONSULTANT TO THE TOY INDUSTRY RECENTLY AGREED TO DEVELOP TOYS EXCLUSIVELY FOR TOY BIZ A TOY COMPANY IN WHICH MARVEL RECENTLY INVESTED HE ALSO WILL BE PRESIDENT AND CHIEF EXECUTIVE OF NEW WORLD FAMILY FILMWORKS INC A FILM PRODUCTION COMPANY OWNED BY ANDREWS GROUP INC WHICH ALSO OWNS 60 OF MARVEL AND IS A SUBSIDIARY OF MACANDREWS & FORBES HOLDINGS INC FUNDS FOR THE MARVEL MEDIA PROJECTS WILL COME FROM NEW WORLD OR OUTSIDE SOURCES MARVEL MARKETS COMIC BOOKS SPORTS CARDS AND OTHER ENTERTAINMENT AND CONSUMER PRODUCTS 9304220179 930422 WHO'S NEWS WESTINGHOUSE ELECTRIC CORP WESTINGHOUSE ELECTRIC CORP PITTSBURGH DAVID W KNAPP 56 YEARS OLD FORMERLY DIRECTOR OF INVESTOR RELATIONS WAS NAMED VICE PRESIDENT OF INVESTOR RELATIONS AT THE COMPANY 9304220178 930422 WHO'S NEWS PREMIER ANESTHESIA INC PREMIER ANESTHESIA INC ATLANTA JOSEPH G BLESER WAS APPOINTED TO THE NEW POST OF EXECUTIVE VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER FOR THIS PROVIDER OF ANESTHESIA SERVICES MR BLESER 47 YEARS OLD PREVIOUSLY SERVED AS SENIOR VICE PRESIDENT FINANCE TREASURER AND CHIEF FINANCIAL OFFICER FOR HBO & CO 9304220177 930422 TREASURY PLANS TO SELL 2625 BILLION IN NOTES WASHINGTON THE TREASURY PLANS TO RAISE A COMBINED 1345 BILLION IN FRESH CASH NEXT WEEK WITH THE SALE OF 1525 BILLION OF TWOYEAR NOTES ON TUESDAY AND 11 BILLION OF FIVEYEAR NOTES ON WEDNESDAY THE BALANCE OF THE PROCEEDS WILL BE USED TO REDEEM 1279 BILLION IN MATURING TWOYEAR AND FIVEYEAR NOTES THE NEW TWOYEAR NOTES WILL BE DATED APRIL 30 AND WILL MATURE APRIL 30 1995 THE NEW FIVEYEAR NOTES WILL BE DATED APRIL 30 AND MATURE APRIL 30 1998 THE CUSIP NUMBER FOR THE TWOYEAR NOTES IS 912827K50 THE CUSIP NUMBER FOR THE FIVEYEAR NOTES IS 912827K68 NONCOMPETITIVE TENDERS FOR THE TWOYEAR NOTES AVAILABLE IN MINIMUM DENOMINATIONS OF 5000 MUST BE RECEIVED BY NOON EDT TUESDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EDT NONCOMPETITIVE TENDERS FOR THE FIVEYEAR NOTES AVAILABLE IN MINIMUM DENOMINATIONS OF 1000 MUST BE RECEIVED BY NOON EDT WEDNESDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EDT 9304220176 930422 INTERNATIONAL LOOTERS HACK AWAY CAMBODIA'S HERITAGE LULL IN WAR GIVES SMUGGLERS ACCESS TO KHMER RELICS BY RAPHAEL PURA STAFF REPORTER OF THE WALL STREET JOURNAL SIEM REAP CAMBODIA YOU SEE THAT'S THE BLOOD SO MUCH BLOOD SAYS GUIDE AND INTERPRETER IN PHALLY POINTING AT THE RUSTYBROWN SPLOTCHES TRAILING DOWN THE MAIN DRIVEWAY OF THE CONSERVATION D'ANGKOR A REPOSITORY OF TREASURES FROM THE MAGNIFICIENT ARRAY OF KHMER MONUMENTS AND TEMPLES NEARBY THE BLOOD STAINS ARE FROM A DRIVER FOR THE CONSERVATION OFFICE WHO WAS SHOT IN THE STOMACH IN FEBRUARY DURING ONE OF THE MOST BRAZEN ART THEFTS THE WORLD HAS SEEN RECENTLY THE RAIDERS USED A GRENADELAUNCHER TO BLAST OPEN A WAREHOUSE DOOR THEY TOOK TWO GOLD FIGURINES AND NINE STATUES WITH A TOTAL ESTIMATED VALUE OF AS MUCH AS 550000 WHAT THEY GRABBED MAY BE HARD TO TRACE IN INTERNATIONAL ART MARKETS BECAUSE THE ARTIFACTS HADN'T BEEN FULLY DOCUMENTED BY CONSERVATION D'ANGKOR EXPERTS UNITED NATIONS OFFICIALS CHARGED WITH IMPLEMENTING A 1991 PEACE ACCORD FOR CAMBODIA SUSPECT RENEGADE SOLDIERS FROM PHNOM PENH'S OWN ARMY CARRIED OUT THE RAID A FRAGILE CEASEFIRE IN CAMBODIA HAS BROUGHT FRESH DANGER TO THE COUNTRY'S STUNNING 700 TO 1000YEAROLD HINDU AND BUDDHIST STONE AND BRICK MONUMENTS WHICH DOT THE COUNTRYSIDE OUTSIDE THE PROVINCIAL CAPITAL OF SIEM REAP THE MONUMENTS INCLUDING ANGKOR WAT THE MASSIVE 12THCENTURY TEMPLE THAT FOR MANY SYMBOLIZES CAMBODIA HAVE SURVIVED 20 YEARS OF WAR AND NEGLECT WITH RELATIVELY LITTLE STRUCTURAL DAMAGE BUT WIDESPREAD PILLAGE OF THE TEMPLES AND ARCHAEOLOGICAL SITES SCATTERED ACROSS 75 SQUARE MILES OF NORTHWESTERN CAMBODIA THREATENS THE COUNTRY'S RICH HERITAGE THE AREA HAS BEEN EXPOSED TO HUGE ATTENTION AFTER A LONG PERIOD OF DARKNESS SAYS JANOS JELEN DEPUTY PROVINCIAL DIRECTOR FOR THE UN TRANSITIONAL AUTHORITY IN CAMBODIA OR UNTAC DEMAND HAS ROCKETED FOR KHMER ART WITH THE ARRIVAL OF UNTAC AND THE OPENING OF THE COUNTRY KHMER IS THE ETHNIC DESIGNATION FOR MOST OF MODERN CAMBODIA'S POPULATION THE COMBINATION OF EASIER PUBLIC ACCESS TO THE MONUMENTS AND LAX OR NONEXISTENT CAMBODIAN SECURITY IS PROVING COSTLY HUNDREDS OF ARTIFACTS LARGE AND SMALL HAVE DISAPPEARED IN THE PAST TWO YEARS MANY HACKED FROM TEMPLE WALLS OR CLUMSILY EXCAVATED CONSERVATIONISTS SAY MOST PIECES ARE SMUGGLED INTO NEIGHBORING THAILAND AND SURFACE ON WORLD ART MARKETS GREEDY FOR KHMER TREASURES PICH KEO DIRECTOR OF CAMBODIA'S NATIONAL MUSEUM IN PHNOM PENH SAYS THE THIEVES ARE GROWING BOLDER EVEN HIS MUSEUM IN THE CAPITAL WHERE MANY OF THE MOST VALUABLE PIECES FROM THE ANGKOR TEMPLES ARE KEPT IS AT RISK HE RECOUNTS HOW SEVERAL THAI TOURISTS RECENTLY SPENT AN ENTIRE DAY THERE SCRUTINIZING SPECIFIC STATUES AND GLANCING FURTIVELY AT THE CEILING AND OTHER POSSIBLE ENTRANCE POINTS LEADING THE MUSEUM TO BEEF UP SECURITY THEFTS HAVE INCREASED AT A TIME WHEN A SEVENYEARLONG INDIAN GOVERNMENT EFFORT TO CLEAN AND PARTIALLY RESTORE ANGKOR WAT ITSELF IS NEARING COMPLETION AND FRESH FRENCH AND USBACKED RESTORATION PROJECTS HAVE BEGUN AND THE PILLAGING ADDS URGENCY TO AN EFFORT BY THE UN EDUCATIONAL SCIENTIFIC AND CULTURAL ORGANIZATION UNESCO TO DRAW UP A PLAN TO GUIDE THE LONGTERM PRESERVATION OF ANGKOR'S MONUMENTS BECAUSE OF THE NATURE OF WHAT THEY'RE TRYING TO STEAL FROM ANGKOR YOU HAVE TO CHOP IT OFF SOMETHING ELSE OR GOUGE IT FROM A HOLE IN THE EARTH SAYS RICHARD ENGLEHARDT UNESCO'S REPRESENTATIVE IN CAMBODIA NOT ONLY HAVE YOU STOLEN SOMETHING YOU HAVE DESTROYED IT CONSERVATIONISTS ARE ALARMED BECAUSE SOME PREVIOUSLY LITTLEDAMAGED SITES HAVE BEEN MARRED IN THE CURRENT SPATE OF THEFTS IN RECENT MONTHS FOR EXAMPLE LOOTERS HAVE BEGUN TO STRIKE AT THE 10THCENTURY BANTEAY SREI TEMPLE 13 DUSTY MILES NORTHEAST OF ANGKOR WAT THE TEMPLE ONE OF CAMBODIA'S OLDEST AND BESTPRESERVED MONUMENTS IS COVERED WITH BAS RELIEFS DEPICTING HINDU DEITIES AND LEGENDS IN EXQUISITE DETAIL SADLY SIGNS OF RECENT THEFT ARE APPARENT SEVERAL CENTRAL FIGURES IN STONE TABLEAUX HAVE BEEN HACKED OUT OF THE WALLS ELSEWHERE ROBBERS HAVE CHISELED OFF THE FACES OF TWO LARGE STATUES LAST TIME I WAS HERE THE HEADS WERE STILL THERE SAYS KHAM SAMBO A CAMBODIAN WHO USED TO WORK IN BANTEAY SREI VILLAGE NOW THEY TAKE TO THAILAND TO SELL NO SECURITY PERSONNEL ARE IN SIGHT AT THE MONUMENT THOUGH PARTS OF THE TEMPLE ARE FENCED OFF BEHIND RUSTY BARBED WIRE AND REDANDWHITE SIGNS FEATURING A SKULL AND CROSSBONES AND WARNING OF MINES A SMALL DETACHMENT OF PHNOM PENH SOLDIERS CAMPS A MILE OR SO AWAY BUT APPEARS TO GIVE PRIORITY TO PROTECTING GOVERNMENT LOGGING OPERATIONS IN THE AREA THE BANTEAY SREI LOOTING IS PROBABLY THE WORK OF AMATEURS WHOSE CRUDE METHODS MAKE IT UNLIKELY THAT SOME OF THE PIECES THEY ATTEMPT TO STEAL SURVIVE IN SALABLE FORM I REALLY WANT TO CRY WHEN I SEE WHAT'S BEEN DONE SAYS UNTAC'S MR JELEN IT'S UNBELIEVABLE DAMAGE CAMBODIAN AUTHORITIES AND INTERNATIONAL AGENCIES ARE TRYING TO THROW UP DEFENSES LAST YEAR UNESCO ORGANIZED A CONFERENCE TO STUDY WAYS OF CHOKING OFF ILLICIT TRADE IN CAMBODIAN TREASURES SUCH AS MAKING MORE DETAILED INVENTORIES AND STRENGTHENING CUSTOMS AND SECURITY THE UN ALSO HOPES TO GET MORE COUNTRIES TO RATIFY A 1970 UNESCO CONVENTION PROHIBITING TRAFFICKING IN CULTURAL PROPERTY AUSTRALIA CANADA AND THE US HAVE SIGNED THE CONVENTION BUT SOME MAJOR IMPORTING COUNTRIES INCLUDING THAILAND AND MANY OTHER ASIAN NATIONS HAVE NOT 9304220175 930422 WHAT'S NEWS BUSINESS AND FINANCE CLINTON'S ECONOMIC STIMULUS BILL WAS EFFECTIVELY KILLED BY A GOP FILIBUSTER MARKING HIS FIRST SIGNIFICANT DEFEAT IN CONGRESS AND RAISING DOUBTS ABOUT HIS ABILITY TO ENACT AN AMBITIOUS LEGISLATIVE AGENDA THE SENATE APPROVED ONLY ONE PIECE OF THE STIMULUS PACKAGE 4 BILLION IN BENEFITS FOR THE LONGTERM UNEMPLOYED THE ECONOMY IS LIKELY TO GROW MODESTLY DESPITE THE FAILURE OF THE STIMULUS PACKAGE COMPUTER MODELS SUGGEST US TRADE OFFICIALS ARE PREPARING TO IMPOSE MILD SANCTIONS AGAINST THE EC AS PART OF A PLAN TO SETTLE A DISPUTE OVER GOVERNMENT PROCUREMENT ALLOWING THE CLINTON ADMINISTRATION TO FOCUS ON ATTACKING JAPANESE TRADE BARRIERS AT&T POSTED A 564 BILLION FIRSTQUARTER LOSS BECAUSE OF ACCOUNTING CHANGES BUT THE PHONE GIANT'S OPERATING PROFIT ROSE 13 DESPITE FIERCE COMPETITION IN THE LONGDISTANCE MARKET AT&T'S LONGDISTANCE SALES GREW 1 AMERICAN AIRLINES PARENT AMR REPORTED A SMALLER THAN EXPECTED FIRSTQUARTER LOSS AMID SIGNS THAT THE INDUSTRY IS NEARING A RECOVERY AMR'S STOCK SOARED 6 OR 92 TO 7125 SOUTHWEST AIRLINES MEANWHILE REPORTED A SHARP INCREASE IN PROFIT AIRLINE STOCKS RALLIED ON THE EARNINGS REPORTS WHILE STOCKS OVERALL ENDED MIXED AND THE DOLLAR EDGED HIGHER UAL CLIMBED 9625 TO 149625 AND DELTA AIR LINES ROSE 2875 TO 59375 PROFIT THE COMPANY CITED WEAKNESS AT ITS PRATT & WHITNEY JET ENGINE UNIT STEMMING FROM THE AIRLINE INDUSTRY'S TROUBLES THE RESULTS WERE BELOW EXPECTATIONS TELECOMMUNICATIONS IS PREPARING TO INVEST IN CAROLCO PICTURES IN EXCHANGE FOR THE RIGHT TO SHOW THE STUDIO'S MOVIES ON PAYPERVIEW TV ON OR BEFORE THE DAY THEY GET TO THEATERS MCDONNELL DOUGLAS GENERAL DYNAMICS AND NORTHROP REPORTED IMPROVED RESULTS FOR THE FIRST QUARTER IN THE WAKE OF COSTCUTTING AND ASSET SALES AMONG THE DEFENSE CONTRACTORS OPEC'S OIL OUTPUT HAS SLIPPED THIS MONTH AFTER A SHARP DECLINE IN MARCH THE CUTS MAY PROP UP CRUDE PRICES FOR THE REST OF THE SECOND QUARTER EVEN THOUGH THE OILEXPORTING GROUP MAY STILL BE EXCEEDING ITS OUTPUT CEILING BIG COMPANIES INTEND TO CONTINUE TO REDUCE DEBT AND KEEP CAPITAL SPENDING LOW DESPITE LOW INTEREST RATES AND AN IMPROVING ECONOMY A SURVEY OF CHIEF FINANCIAL OFFICERS FOUND PEPSICO IS BRINGING TWO LINES OF FRUITFLAVORED DRINKS INCLUDING LEMONADE TO TEST MARKETS THIS WEEK CHRISTIE'S IS BUYING LONDONBASED SPINK & SON ONE OF THE OLDEST AND LARGEST ART DEALERS IN THE WORLD SOME DEALERS SAID THE AUCTION HOUSE'S MOVE COULD POSE A CONFLICT OF INTEREST EQUITABLE COS RAISED 779 MILLION 200 MILLION MORE THAN EXPECTED THROUGH A SALE OF CONVERTIBLE PREFERRED STOCK SIGNIFICANTLY INCREASING THE INSURANCE CONCERN'S FINANCIAL STRENGTH AMOCO REPORTED A 229 MILLION FIRSTQUARTER PROFIT AFTER A LOSS A YEAR EARLIER AS OPERATING EARNINGS ROSE 33 OTHER OIL COMPANIES ARE EXPECTED TO SHOW SIMILAR GAINS FOR THE PERIOD COMPAQ'S PROFIT AND REVENUE MORE THAN DOUBLED IN THE FIRST QUARTER BUT ITS STOCK DROPPED 1875 TO 4925 REFLECTING FEARS THAT THE PERSONALCOMPUTER BOOM MAY BE QUIETING DOWN NEC PROJECTED A PROFIT FOR THE CURRENT FISCAL YEAR ENDING NEXT MARCH AFTER RECORDING A LOSS FOR LAST YEAR BUT ANALYSTS SAID THE JAPANESE ELECTRONICS COMPANY IS BEING OVERLY OPTIMISTIC BONDS LEHMAN BROTHERS TREASURY INDEX 513221 UP 461 COMMODITIES OIL 2037 A BARREL UP FIVE CENTS DOW JONES FUTURES INDEX 12331 OFF 075 SPOT INDEX 12029 OFF 105 DOLLAR 11071 YEN UP 016 15995 MARKS UP 00032 9304220174 930422 WHO'S NEWS BANC ONE CORP BANC ONE CORP COLUMBUS OHIO WILLIAM P BOARDMAN 52 YEARS OLD WAS NAMED SENIOR EXECUTIVE VICE PRESIDENT OF THIS BANK HOLDING COMPANY MR BOARDMAN WHO HAD BEEN EXECUTIVE VICE PRESIDENT CONTINUES AS HEAD OF THE COMPANY'S ACQUISITION TEAM 9304220173 930422 US RESERVE ASSETS RISE TO 7438 BILLION WASHINGTON US OFFICIAL RESERVE ASSETS ROSE 153 BILLION IN MARCH TO 7438 BILLION THE TREASURY SAID ASSETS IN FEBRUARY ROSE 855 MILLION THE NATION'S HOLDINGS OF FOREIGN CURRENCIES ROSE 123 BILLION IN MARCH TO 4235 BILLION WHILE ITS GOLD RESERVES FELL 1 MILLION TO 1105 BILLION HOLDINGS OF INTERNATIONAL MONETARY FUND SPECIAL DRAWING RIGHTS INCREASED 136 MILLION TO 879 BILLION WHILE THE ABILITY TO DRAW FROM THE IMF INCREASED 163 MILLION TO 1218 BILLION 9304220172 930422 WHO'S NEWS VMX INC VMX INC SAN JOSE CALIF WILLIAM HASLER 51YEAROLD DEAN OF THE HAAS SCHOOL OF BUSINESS AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY WAS NAMED A DIRECTOR OF THIS BUSINESS COMMUNICATIONS CONCERN INCREASING BOARD MEMBERSHIP TO SIX 9304220171 930422 WORLD MARKETS TOKYO EQUITIES DROP AS CORRECTION CONTINUES PRICES RISE IN LONDON FALL SHARPLY IN FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS SLIPPED WEDNESDAY AS THE CORRECTION THAT BEGAN LAST FRIDAY PROMPTED SOME SELLING OF RECENT MARKET LEADERS LONDON SHARES CONTINUED THEIR ADVANCE IN ACTIVE TRADING FRANKFURT PRICES FELL SHARPLY PRONOUNCED BY PROFITTAKING AMID THIN VOLUME IN TOKYO THE NIKKEI 225STOCK INDEX WHICH LOST 28391 POINTS TUESDAY FELL 5542 TO 1977301 FIRST SECTION VOLUME WAS ESTIMATED AT 400 MILLION SHARES DOWN FROM 4604 MILLION SHARES A DAY EARLIER LOSERS OUTNUMBERED GAINERS 699330 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH DECLINED 1023 POINTS TUESDAY DROPPED 1078 TO 153256 IN TOKYO THURSDAY THE NIKKEI INDEX ROSE 24325 POINTS TO CLOSE THE MORNING SESSION AT 2001626 AS THE LOSING STREAK RAN TO FOUR SESSIONS IN A ROW WEDNESDAY FOLLOWING A 20 SURGE SINCE MARCH INDIVIDUAL INVESTORS AND DEALERS UNLOADED POSITIONS FEARING ANY BAD NEWS WHILE THE MARKET IS STALLED BUT THE NIKKEI WASN'T EXPECTED TO DROP MUCH BELOW 19500 BECAUSE INSTITUTIONAL INVESTORS THAT MISSED THE MARKET'S BIG RISE WERE LOOKING FOR BARGAINS AND MANY HAVE ALREADY BEGUN BUYING DURING THE CURRENT CORRECTION DESPITE THE YEN'S RISE TO YET ANOTHER RECORD OF 10995 YEN TO THE DOLLAR IN TOKYO WEDNESDAY BLUECHIP EXPORTING STOCKS ESCAPED LARGELY UNSCATHED AS INVESTORS GRADUALLY DISCOUNTED THE JAPANESE CURRENCY'S STRENGTH AT AROUND THE 110YEN LEVEL THE DOLLAR'S FALL REINFORCED STOCK INVESTORS' CAUTION ABOUT THE POSSIBLE HARM TO THE JAPANESE ECONOMY THE YEN'S SHARP RISE THREATENS JAPANESE EXPORTERS' EARNINGS BY CUTTING INTO THE VALUE OF THEIR OVERSEAS EARNINGS BUT THE DOLLAR STAYED ABOVE 110 YEN FOR THE AFTERNOON AND EXPORTERS HELD THEIR GROUND WITH THE HELP OF BARGAINHUNTING BY INSTITUTIONS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX CLIMBED 135 POINTS TO 28696 THE FT 30STOCK INDEX GAINED 186 POINTS TO 22435 VOLUME WAS A HEALTHY 7377 MILLION SHARES UP FROM 5434 MILLION SHARES A DAY EARLIER DESPITE THE SECOND CONSECUTIVE DAY OF GAINS SOME LONDON DEALERS WERE CAUTIOUS ABOUT THE MARKET'S SHORTTERM OUTLOOK CITING CONCERNS ABOUT BRITAIN'S ECONOMY AND ANTICIPATED THAT HEAVY PROFITTAKING WOULD EMERGE AFTER ANY FURTHER GAINS INDEED SOME INVESTORS TOOK PROFITS YESTERDAY BRINGING THE MARKET DOWN FROM THE DAY'S HIGHS CHEMICAL AND PHARMACEUTICAL STOCKS DID WELL AGAIN WHILE UTILITIES AND WATER STOCKS LOST GROUND IN FRANKFURT THE DAX 30STOCK INDEX TUMBLED 2024 POINTS OR 12 TO 166687 FRACTIONALLY ABOVE THE INTRADAY LOW ALL THE DAX STOCKS FELL THE MARKET BEGAN MOVING LOWER IN EXTREMELY THIN TRADING AND THE LACK OF VOLUME WAS PARTLY RESPONSIBLE FOR THE SHARP DECLINE PRICES WERE DRIVEN DOWN BY PROFITTAKING AND A FLURRY OF BAD NEWS ABOUT EARNINGS A DAY EARLIER FROM GERMAN MACHINERY AND STEEL COMPANIES PARIS SHARES FELL FOR THE SIXTH CONSECUTIVE SESSION LEAVING THE CAC 40 INDEX AT ITS LOWEST LEVEL SINCE MARCH 22 AND UP ONLY 399 FOR THIS YEAR HURT BY PROFITTAKING AND WARNINGS BY SECURITIES FIRMS ABOUT OVERWEIGHTING POSITIONS IN FRENCH EQUITIES AS WELL AS TODAY'S END OF THE APRIL ACCOUNTING PERIOD IN MILAN SHARES REBOUNDED FROM SESSION LOWS BUT STILL FINISHED LOWER ON CONTINUED PROFITTAKING FOLLOWING GAINS LAST WEEK AND MONDAY IN ANTICIPATION OF THE ITALIAN REFERENDUM WHICH FAVORED ELECTORAL REFORM MADRID STOCKS WERE PUSHED DOWN BY PROFITTAKING AND DWINDLING HOPES OF A GERMAN INTERESTRATE CUT STOCKHOLM SHARE PRICES SURGED IN HEAVY TRADING BUOYED BY A CONTINUING RALLY IN THE PHARMACEUTICAL SECTOR SYDNEY SHARE PRICES FELL FOLLOWING THE LEAD OF TOKYO WEDNESDAY AND WALL STREET TUESDAY MINING STOCKS WERE HIT BY CONTINUED WEAK WORLD PRICES FOR COPPER AND SOME OTHER METALS BUT SOME GOLD STOCKS EDGED UP HONG KONG PRICES GAINED SHARPLY ON THE EVE OF SINOBRITISH NEGOTIATIONS ABOUT THE COLONY'S POLITICAL FUTURE TAIPEI STOCKS' ADVANCE WAS LED BY ELECTRICAL ISSUES SEOUL STOCKS HIT A 1993 HIGH AFTER A BUYING BINGE FOCUSING ON EXPORTORIENTED ISSUES WELLINGTON SHARE PRICES ROSE FOR THE FOURTH CONSECUTIVE SESSION WITH CONTINUED STRONG DEMAND FOR FORESTRYRELATED COMPANIES BOOSTING THE MARKET MANILA EQUITIES SLUMPED IN REACTION TO DISAPPOINTING REPORTS ON OIL DRILLINGS AMONG CORPORATE DEVELOPMENTS IN LONDON IMPERIAL CHEMICAL INDUSTRIES JUMPED 41 PENCE OR 34 TO 1236 1915 ICI SAID ITS ZENECA BIOSCIENCE UNIT WILL BE SPUN OFF JUNE 1 IF SHAREHOLDERS APPROVE THE PLAN AT A SPECIAL MEETING MAY 28 ICI SAID ZENECA'S EARNINGS SO FAR THIS YEAR WERE AHEAD OF THOSE A YEAR EARLIER AS WERE ICI'S PHARMACEUTICAL AND SPECIALTY BUSINESS RESULTS FOR THE FIRST QUARTER IN PARIS PSA PEUGEOT CITROEN GAVE UP 9 FRENCH FRANCS OR 16 TO 537 FRANCS 9976 ANALYSTS EXPECTED THE AUTO MAKER TODAY TO POST A 45 DROP IN 1992 EARNINGS TO SLIGHTLY MORE THAN 3 BILLION FRANCS 5573 MILLION FROM 553 BILLION FRANCS IN 1991 BOUYGUES FELL 18 OR 27 TO 654 THE CONSTRUCTION AND PUBLIC WORKS CONCERN PLANS TO PAY AN UNCHANGED NET DIVIDEND OF 16 FRANCS A SHARE IN 1993 ON SHARE CAPITAL THAT HAS BEEN INCREASED 14 CITING WEAK DEMAND RECENTLY BOUYGES ALSO INDICATED A REDUCTION IN ITS JANUARY PROJECTION OF 1993 REVENUE TO 575 BILLION FRANCS FROM 582 BILLION FRANCS OR AN 83 DROP FROM 1992 REVENUE OF 627 BILLION FRANCS AND BOUYGUES POSTED FINAL 1992 FINANCIAL DATA SHOWING CONSOLIDATED NET PROFIT ROSE 79 TO 685 MILLION FRANCS IN LINE WITH THE PROVISIONAL REPORT OF 680 MILLION FRANCS IN AMSTERDAM NEDLLOYD GAINED 130 GUILDERS OR 45 TO 3030 GUILDERS 1692 AS EXPECTED THE SHIPPING AND ROAD TRANSPORT COMPANY POSTED A 1992 NET LOSS OF 58 MILLION GUILDERS 324 MILLION COMPARED WITH 1991 PROFIT OF 145 MILLION GUILDERS IT ALSO OMITTED ITS DIVIDEND FOR THE THIRD CONSECUTIVE YEAR AND SAID IT WAS EXPLORING RESTRUCTURING MEASURES TO CUT COSTS BY 500 MILLION GUILDERS BY THE END OF 1994 IN ZURICH GEBRUEDER SULZER SANK 19 SWISS FRANCS OR 26 TO 724 FRANCS 49623 THE MACHINERY AND TECHNOLOGY COMPANY PREDICTED THAT 1993 EARNINGS WOULD MATCH OR SLIGHTLY EXCEED YEAREARLIER PROFIT OF 168 MILLION FRANCS 1151 MILLION AND THAT SALES WOULD BE FLAT AT 68 BILLION FRANCS 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 9304220170 930422 ECONOMY LARGE FIRMS WILL CONTINUE TO CUT DEBT LIMIT CAPITAL SPENDING SURVEY SHOWS BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL DESPITE LOW INTEREST RATES AND AN IMPROVING ECONOMY LARGE CORPORATIONS WILL CONTINUE TO REDUCE DEBT AND KEEP CAPITAL SPENDING LOW A NEW SURVEY OF CHIEF FINANCIAL OFFICERS SHOWS MORE THAN HALF OF THE 150 RESPONDENTS TO THE GOLDMAN SACHS & CO SURVEY IN LATE MARCH SAID THEY EXPECTED THE LEVERAGE OF THEIR BALANCE SHEETS TO DECLINE BY THE END OF THE YEAR WITH BANK DEBT SHOWING THE GREATEST FALLOFF ONLY 19 OF THE GROUP PLANNED TO ADD DEBT DELEVERAGING HAS APPARENTLY BECOME A WAY OF LIFE ROBERT ALBERTSON GOLDMAN'S SENIOR BANKING ANALYST WROTE IN THE REPORT TO CLIENTS THE TALLY OF FINANCIAL CHIEFS' PLANS TO REDUCE BANK DEBT IS THE LARGEST SINCE THE SEMIANNUAL SURVEY WAS FIRST CONDUCTED IN 1976 IF PAST PATTERNS REPEAT IT SIGNALS A DECLINE OF 10 IN BANK BORROWING BY THE LARGE COMPANIES MR ALBERTSON SAID EXPECTATIONS OF CONTINUED GROWTH IN OTHER CORPORATE SERVICES SUCH AS CASH MANAGEMENT WILL HELP THE BANKS OFFSET THAT DECLINE HE ADDED ELECTRONIC DATA SYSTEMS THE GENERAL MOTORS CORP SUBSIDIARY IS ONE OF THE LARGE COMPANIES THAT IS DELEVERAGING BY REDUCING BANK DEBT OUR CASH FLOW HAS IMPROVED WHICH PRESENTS AN OPPORTUNITY TO DELEVERAGE SAYS JOSEPH GRANT CHIEF FINANCIAL OFFICER HE PLANS TO SLICE ABOUT 100 MILLION OFF THE COMPANY'S 400 MILLION IN SHORTTERM BANK DEBT BY YEAR END THE DEBT IS BAD CASH IS GOOD' MENTALITY THAT BEGAN WITH THE EXPERIENCE OF THE LATE 1980S IS PREVALENT SAYS MR GRANT HELPING ALSO TO REDUCE DEBT AS THE ECONOMY EXPANDS IS JUSTINTIME INVENTORY CONTROL METHODS HE ADDED BUT THE SURVEY RESULTS FOR THE MOST PART ARE GLUM FOR THE ECONOMY MR ALBERTSON SAID IN AN INTERVIEW ALTHOUGH CASH FLOW PROJECTIONS FOR THE SECOND HALF OF THE YEAR CALL FOR A HEALTHY 99 AVERAGE GAIN UP FROM 88 THAT HAD BEEN EXPECTED FOR THE FIRST HALF THE CHIEF FINANCIAL OFFICERS FORESEE A SLIGHT DECLINE IN INVENTORY LEVELS AND ONLY A 34 GAIN IN CAPITAL SPENDING THIS IS A DUALPRONGED MESSAGE OF CAUTION MR ALBERTSON NOTED AT THIS POINT IN THE ECONOMY CAPITAL SPENDING PLANS SHOULD BE DOUBLE THAT MUCH AND INVENTORIES SHOULD BE SHOWING STRONGER BUILDUP HE SAID THE CAPITAL SPENDING FORECAST IS WEAKER THAN OTHER RECENT SURVEYS OF LARGE AND MIDSIZE CORPORATIONS ONE REASON MAY BE THAT THE GOLDMAN SACHS SURVEY HAD A GREATER PERCENTAGE OF MAJOR CORPORATIONS AMONG THE RESPONDENTS OTHER RESPONDENTS IN THE SURVEY WERE NEARLY TWICE AS OPTIMISTIC ABOUT SPENDING PLANS ALSO MR ALBERTSON SAID MIDSIZE COMPANIES IN HIS SURVEY HAD GREATER FAITH IN THE CLINTON ADMINISTRATION'S ECONOMIC POLICIES AND WOULD PROBABLY BORROW FROM BANKS AT A STEADY OR SLIGHTLY INCREASED RATE IN 1993 BANKERS SAY THEY ARE SEEING THE SAME PATTERNS CAPITAL SPENDING BORROWING BY LARGE CUSTOMERS IS NOT EVIDENT YET SAYS MICHAEL MURRAY VICE CHAIRMAN IN CHARGE OF CORPORATE BANKING AT CONTINENTAL BANK CORP MIDDLE MARKET LENDING ON THE OTHER HAND IS STABLE TO EVEN IMPROVING HE SAID BUT BANKS LIKE HIS ARE MORE SELECTIVE THAN IN YEARS PAST NO ONE IS GOING BACK TO THE DAYS OF 13 TIMES INTEREST COVERAGE PEOPLE AT THE LOWER END OF THE FOOD CHAIN ARE GOING TO HAVE A MORE DIFFICULT TIME BORROWING MONEY THIS TIME AROUND LARGE HEALTHY COMPANIES ARE CUTTING BACK ON BANK DEBT THAT HAD BEEN USED FOR WORKING CAPITAL NOTES JOSEPH PRENDERGAST PRESIDENT OF THE CORPORATE BANKING DIVISION OF WACHOVIA CORP NOW THEY ARE REFUNDING THOSE LOANS WITH EQUITY FROM NEW STOCK OFFERINGS OR LOCKING IN LONGTERM MONEY IN THE BOND OR PRIVATE PLACEMENT MARKETS BEFORE RATES RISE HE ADDED THAT FITS WITH THE FINANCIAL CHIEFS' EXPECTATIONS IN THE SURVEY WHERE 26 EXPECTED LONGTERM INTEREST RATES TO RISE BY YEAR END AND ONLY 12 FELT THEY WOULD FALL FURTHER MR PRENDERGAST SEES LOAN DEMAND FROM COMPANIES WITH MORE THAN 250 MILLION IN ANNUAL SALES REMAINING SLOW AT THE SAME TIME HE ADDED SUPPLY IS COMING BACK STRONGER THAN USUAL FROM MANY BANKS BECAUSE OF IMPROVED EARNINGS AND CAPITAL RAISING MORE BANKS ARE ANXIOUS TO PLAY AND SOME OF THE EUROPEAN BANKS ARE A LITTLE MORE AGGRESSIVE HE SAID COMPETITION HAS ALREADY DRIVEN DOWN BORROWING COSTS THE GOLDMAN SACHS SURVEY SHOWED THAT THE AVERAGE SPREAD OVER THE LONDON INTERBANK OFFERED RATE WAS 079 OF A PERCENTAGE POINT AT THE TIME OF THE SURVEY DOWN FROM 085 LAST FALL ALTHOUGH LARGE COMPANIES WILL BE TURNING LESS TO BANKS FOR LOANS THEIR OTHER BUSINESS WITH THEM HAS BEEN GROWING NICELY SAYS MR ALBERTSON ANCILLARY SERVICES WHICH INCLUDE CASH MANAGEMENT ADVISORY AND RISK MANAGEMENT HAVE GROWN TO 42 OF THE TOTAL REVENUES THE AVERAGE LARGE COMPANY PAYS TO ITS PRIMARY RELATIONSHIP BANK UP FROM 34 LAST FALL TEN YEARS AGO I WOULD HAVE FELT COMPELLED TO PULL BACK ON BANK STOCKS IF THE SURVEY HAS SHOWN SUCH WEAK LOAN DEMAND AS NOW MR ALBERTSON SAID BUT THEN THE AMOUNT OF RESIDUAL BUSINESS WAS NOT HUGE IT'S LIKE THE LOAN BUSINESS HAS BEEN REPLACED