THE DEFENSE DEPARTMENT IS CONSIDERING BARRING BAXTER INTERNATIONAL INC FROM SUPPLYING HOSPITAL GOODS TO THE US GOVERNMENT IN THE WAKE OF THE COMPANY'S RECENT FELONY GUILTY PLEA THE DEFENSE PERSONNEL SUPPORT CENTER IN PHILADELPHIA HAS SENT A NOTICE TO MILITARY INSTALLATIONS CALLING BAXTER'S ADMISSION OF GUILT FOR VIOLATING A FEDERAL LAW AGAINST COOPERATING WITH THE ARAB ECONOMIC BOYCOTT OF ISRAEL A FELONY FEDERAL OFFENSE WITH POTENTIALLY SIGNIFICANT CONSEQUENCES THE PENTAGON OFFICE WHICH BUYS MEDICAL AND OTHER SUPPLIES FOR THE US MILITARY SAID THE BAXTER CRIME WAS SERIOUS ENOUGH THAT WE MUST CONSIDER THE NEED TO RECOMMEND DEBARMENT BAXTER IS THE WORLD'S LARGEST HOSPITAL SUPPLIER AND BESIDES ITS GUILTY PLEA LAST MONTH AGREED TO PAY A FINE OF 65 MILLION DEBARMENT IS THE GOVERNMENT'S TERM FOR PROHIBITING A CONTRACTOR FROM DOING BUSINESS WITH THE GOVERNMENT FOR A PERIOD OF MONTHS OR YEARS SUCH A STEP WOULD BAN BAXTER FROM DOING BUSINESS WITH THE ENTIRE GOVERNMENT THE DEFENSE DEPARTMENT'S DECISION CONTROLS OTHER AGENCIES LIKE THE VETERANS ADMINISTRATION THAT DO BUSINESS WITH BAXTER ALL TOLD BAXTER'S BUSINESS WITH THE US GOVERNMENT IS ESTIMATED BY ANALYSTS AT SOME 125 MILLION A YEAR WITH ABOUT HALF OF THAT REPRESENTING BUSINESS WITH THE PENTAGON BAXTER'S TOTAL REVENUE EXCEEDS 8 BILLION ANNUALLY IF THE PERSONNEL SUPPORT CENTER WERE TO RECOMMEND DEBARMENT OF BAXTER THE FINAL DECISION TO DEBAR IS THEN MADE BY ANOTHER OFFICIAL IN ANOTHER PENTAGON BRANCH CALLED THE DEFENSE LOGISTICS AGENCY BAXTER'S GUILTY PLEA FOLLOWED A MULTIYEAR CAMPAIGN BY THE DEERFIELD ILL COMPANY TO ESCAPE THE ARAB BLACKLIST THE COMPANY ADMITTED ILLEGALLY SUPPLYING EXTENSIVE INFORMATION TO BOYCOTT AUTHORITIES ON ITS BUSINESS IN ISRAEL INCLUDING THE SALE OF A PLANT THERE EARLIER THIS WEEK BAXTER'S SENIOR VICE PRESIDENT AND GENERAL COUNSEL G MARSHALL ABBEY RESIGNED AS PRESSURE BEGAN TO BUILD ON THE COMPANY FROM ITS HOSPITAL CUSTOMERS MR ABBEY WHO SPEARHEADED THE EFFORT TO LEAVE THE ARAB BLACKLIST AGREED TO PAY A CIVIL FINE OF 101000 THE DEFENSE DEPARTMENT IS ALSO EVALUATING WHETHER BAXTER IS ESSENTIAL ENOUGH TO THE GOVERNMENT AS A SUPPLIER FOR CERTAIN HOSPITAL COMMODITIES THAT THE GOVERNMENT NEEDS TO KEEP BAXTER ON A LIMITED BASIS EVEN IF PARTIAL DEBARMENT TAKES PLACE A BAXTER SPOKESMAN SAID THE COMPANY HAS SEEN INTERNAL DEFENSE DEPARTMENT COMMUNIQUES DEALING WITH THE QUESTION OF DEBARMENT BUT HAS NOT BEEN ASKED TO SUBMIT INFORMATION TO THE GOVERNMENT ONE ANALYST KENT BLAIR OF DONALDSON LUFKIN & JENRETTE SECURITIES CORP ESTIMATED THAT IF THE GOVERNMENT WERE TO PERMANENTLY DEBAR BAXTER THIS COULD COST THE COMPANY AN ESTIMATED 12 TO 13 CENTS A SHARE IN PROFIT MR BLAIR SAID HOWEVER THAT IN SIMILAR CASES COMPANIES TYPICALLY WERE DEBARRED FOR A NUMBER OF MONTHS NOT YEARS 9304220168 930422 WHO'S NEWS DOW JONES & CO DOW JONES & CO NEW YORK DAVID KP LI 54 YEARS OLD WAS ELECTED A DIRECTOR OF THE PUBLISHING AND INFORMATIONSERVICES COMPANY FILLING A SEAT ON THE 16MEMBER BOARD LEFT VACANT BY RETIREMENT MR LI IS CHIEF EXECUTIVE OFFICER AND A DIRECTOR OF THE BANK OF EAST ASIA LTD IN HONG KONG DOW JONES PUBLISHES THE WALL STREET JOURNAL 9304220167 930422 WHO'S NEWS WESTAMERICA BANCORP WESTAMERICA BANCORP SAN RAFAEL CALIF GLEN C TERRY 42 YEARS OLD FORMERLY VICE PRESIDENT OF WESTAMERICA WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NAPA VALLEY BANK THE NEWLY ACQUIRED BANKING UNIT OF THIS COMMERCIAL BANKING CONCERN HE SUCCEEDS E JAMES HEDEMARK 44 WHO RESIGNED FOLLOWING COMPLETION OF THE MERGER ON APRIL 15 9304220166 930422 HARSCO GETS 30 MILLION ORDER HARRISBURG PA HARSCO CORP SAID ITS BMYWHEELED VEHICLES DIVISION WON A CONTRACT FOR ABOUT 30 MILLION TO SUPPLY FIVETON CARGO TRUCKS TO THE US GOVERNMENT DELIVERY SHOULD BE COMPLETED AROUND MIDYEAR THE INDUSTRIAL CONCERN SAID IN A STATEMENT SEPARATELY HARSCO SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE A MAJORITY STAKE IN INFLEX SA A MAKER OF STEEL CYLINDERS IN BUENOS AIRES WITH SALES OF 12 MILLION THE COMPANY DIDN'T SPECIFY TERMS OR THE EXACT SIZE OF THE STAKE AND OFFICIALS WEREN'T AVAILABLE TO ELABORATE 9304220165 930422 WEDNESDAY'S MARKETS AIRLINE STOCKS BOLSTER MARKET BONDS EDGE UP BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL STOCKS ENDED MIXED AFTER INVESTORS RODE A SPECTACULAR RALLY IN AIRLINE STOCKS BOND PRICES WERE SLIGHTLY HIGHER AND THE DOLLAR CREPT HIGHER AFTER HITTING A POSTWORLD WAR II LOW AGAINST THE YEN FOR THE FOURTH CONSECUTIVE TRADING DAY THE DOW JONES INDUSTRIAL AVERAGE SLIPPED 405 POINTS TO 343944 IN HEAVY TRADING BUT THE DOW JONES TRANSPORTATION AVERAGE ROCKETED UP 2075 POINTS TO 166576 STANDARD & POOR'S 500STOCK INDEX FELL 147 TO 44363 BUT THE NASDAQ COMPOSITE INDEX GAINED 207 TO 66404 EVERY DAY THERE IS A RESCUE GROUP FOR THE MARKET AND TODAY THE GLUE HOLDING IT TOGETHER WAS THE AIRLINE STOCKS SAID LON GORMAN COHEAD OF EQUITY TRADING AT FIRST BOSTON AIRLINE STOCKS STARTED SOARING SOON AFTER AMR THE PARENT OF AMERICAN AIRLINES SURPRISED INVESTORS BY POSTING A SMALLERTHANEXPECTED FIRSTQUARTER LOSS AMR JUMPED 6 TO 71 1/4 WHILE UAL THE PARENT OF UNITED AIRLINES SURGED 9 5/8 TO 149 5/8 AND DELTA AIR LINES ROSE 2 7/8 TO 59 3/8 MR GORMAN SAID AIRLINE STOCKS ARE BENEFITING FROM PERCEPTIONS THAT PROFITS IN THE DEPRESSED INDUSTRY WILL IMPROVE AS THE ECONOMY STRENGTHENS RECENT INITIATIVES BY PRESIDENT CLINTON ALSO SUGGEST THAT THE ADMINISTRATION WILL HAVE A FRIENDLY EYE TOWARD THE SKIES SAID MR GORMAN EVEN THOUGH THE MARKET HAS BEEN IN A NARROW TRADING RANGE RECENTLY DENNIS JARRETT CHIEF MARKET ANALYST AT KIDDER PEABODY SAID THERE ARE A NUMBER OF DEVELOPMENTS WHICH HE CONSIDERS HEALTHY FOR EXAMPLE HE SAID A RECENT REPORT SHOWED ONLY 41 OF INVESTMENT ADVISERS ARE BULLISH WHICH MEANS THERE IS PLENTY OF CASH AVAILABLE TO FUEL A NEW RALLY WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 055 POINT TO 10396 STOCKS FINISHED MIXED VOLUME TOTALED 2863 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 963 ISSUES FELL AND 917 ROSE BOND PRICES EDGED HIGHER THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED A FRACTION OF A POINT TO YIELD 674 THE DOLLAR ROSE SLIGHTLY IN LATE NEW YORK TRADING THE CURRENCY WAS AT 15995 MARKS AND 11071 YEN COMPARED WITH 15963 MARKS AND 11055 YEN LATE TUESDAY 9304220164 930422 THREE AEROSPACE FIRMS REPORT GAINS FOR 1ST PERIOD ON COST CUTS ASSET SALES BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL MCDONNELL DOUGLAS CORP GENERAL DYNAMICS CORP AND NORTHROP CORP ALL REPORTED IMPROVED FIRSTQUARTER RESULTS AS THEY HARVESTED REWARDS FROM COSTCUTTING ASSET SALES OR PROFITS ON MATURING GOVERNMENT CONTRACTS MCDONNELL DOUGLAS REPORTED RECORD EARNINGS OF 216 MILLION OR 551 A SHARE COMPARED WITH A RESTATED YEAREARLIER LOSS OF 151 BILLION OR 3929 A SHARE WHICH REFLECTED AN ACCOUNTING CHARGE FOR RETIREE HEALTH BENEFITS GENERAL DYNAMICS'S EARNINGS ROSE 57 TO 687 MILLION OR 2180 A SHARE FROM THE 15 BILLION SALE OF ITS FIGHTER BUSINESS AND TO IMPROVED RETURNS FROM CONTINUING OPERATIONS NORTHROP NOTCHED AN 11 INCREASE IN FIRSTQUARTER NET INCOME TO 52 MILLION OR 109 A SHARE COMPARED WITH 47 MILLION OR 1 A SHARE BECAUSE OF HIGHER PROFIT MARGINS ON THE B2 BOMBER AND F/A18 FIGHTER CONTRACT AND PARTS WORK FOR THE BOEING 747 AIRLINER THE IMPROVED RESULTS FOR MCDONNELL DOUGLAS ST LOUIS CAME DESPITE AN 11 DROP IN REVENUE TO 362 BILLION FROM 406 BILLION BECAUSE OF DEFENSE CUTBACKS AND PROBLEMS IN COMMERCIAL AIRCRAFT MARKETS THE COMPANY'S LATEST EARNINGS INCLUDE UNUSUAL GAINS TOTALING 122 MILLION OR 310 A SHARE SUCCESSFUL RESOLUTION OF TAX ISSUES YIELDED 85 MILLION OR 217 A SHARE THE SALE OF A MCDONNELL DOUGLAS INFORMATION SYSTEMS INTERNATIONAL UNIT RAISED 37 MILLION OR 93 CENTS A SHARE HOWEVER EXCLUDING UNUSUAL GAINS MCDONNELL DOUGLAS STILL WOULD HAVE HAD EARNINGS OF 94 MILLION OR 241 A SHARE EARNINGS IN 1992'S FIRST QUARTER EXCLUDING THE EFFECT OF BOTH DISCONTINUED OPERATIONS AND THE NEW ACCOUNTING STANDARD FOR RETIREE HEALTH BENEFITS WERE 20 MILLION OR 52 CENTS A SHARE OVERALL MCDONNELL DOUGLAS SENIOR MANAGERS WERE ABLE TO SHOW SIGNIFICANT PROGRESS TOWARD GOALS THEY OUTLINED FOR INVESTORS IN JANUARY AEROSPACE DEBT WAS REDUCED BY ABOUT 287 MILLION OR 10 DURING THE QUARTER CONTRIBUTING TO A GOAL OF REDUCING DEBT BY 1 BILLION THIS YEAR AS PART OF A CAMPAIGN TO IMPROVE THE COMPANY' S FLAGGING CREDIT RATING THE CONTROVERSIAL C17 MILITARY TRANSPORT PROGRAM REMAINED UNPROFITABLE BUT HAD A LOSS OF ONLY 1 MILLION COMPARED WITH A LOSS OF 101 MILLION IN THE YEAREARLIER QUARTER SAID HERBERT J LANESE CHIEF FINANCIAL OFFICER HE REPEATED HIS PREDICTION THAT THE PROGRAM IS EXPECTED TO BE PROFITABLE THIS YEAR THE LARGE MILITARY AIRCRAFT UNIT OF MCDONNELL DOUGLAS WHICH ALSO MAKES THE F15 AND F/A18 FIGHTERS PRODUCED OPERATING EARNINGS OF 103 MILLION UP FROM 24 MILLION IN THE SAME PERIOD IN 1992 THEN THE SEGMENT'S RESULTS WERE DEPRESSED BY AN 80 MILLION WRITEOFF IN THE C17 PROGRAM THE MISSILES SPACE AND ELECTRONIC SYSTEMS UNIT SHOWED RECORD OPERATING EARNINGS OF 99 MILLION IN THE LATEST PERIOD COMPARED WITH 44 MILLION LAST YEAR THE MCDONNELL DOUGLAS COMMERCIALAIRCRAFT BUSINESS BASED IN LONG BEACH CALIF CONTINUED TO BE PROFITABLE RECORDING 14 MILLION IN OPERATING EARNINGS FOR THE QUARTER BUT THE OPERATION STILL FACES SIGNIFICANT PROBLEMS IN MAINTAINING PRODUCTION AND ITS MARKET SHARE OVER THE LONG HAUL MCDONNELL DOUGLAS DELIVERED 20 JETS OF VARIOUS SIZES DURING THE RECENT QUARTERBUT IT ALSO WAS HIT WITH CANCELED ORDERS FOR 14 PLANES LEAVING IT WITH NET NEW ORDERS FOR SIX AIRCRAFT MR LANESE CONFIRMED THAT MCDONNELL DOUGLAS HAS PRODUCED MORE THAN A DOZEN WHITE TAIL JETS THOSE WITHOUT PREARRANGED BUYERS AS A RESULT OF CANCELED DELIVERIES FOR IRISH LESSOR GPA GROUP PLC AND THE DEFUNCT YUGOSLAVIAN CARRIER JAT HE ALSO SUGGESTED THAT AN AVERAGE OF ANALYSTS' ESTIMATES PREDICTING EARNINGS OF 866 A SHARE FOR 1993 WAS STILL CONSERVATIVE EVEN THOUGH THE AVERAGE HAS BEEN INCREASING HE ALSO SAID THE COMPANY WILL DECIDE IN THE NEXT 90 DAYS WHETHER TO KEEP ITS HELICOPTER UNIT OTHER OPTIONS INCLUDE SELLING THE DIVISION OR PLACING IT IN A JOINT VENTURE AT GENERAL DYNAMICS NET INCOME IN THE YEARAGO QUARTER WAS 435 MILLION OR 1001 A SHARE EARNINGS IN THE LATEST QUARTER INCLUDED A GAIN OF 645 MILLION FROM SALE OF THE FIGHTER UNIT TO LOCKHEED CORP GENERAL DYNAMICS ALSO SHOWED THAT ITS EARNINGS FROM CONTINUING OPERATIONS MAKING TANKS SUBMARINES AND ROCKETS INCREASED 37 FROM THE SAME QUARTER IN 1992 SALES OF 878 MILLION WERE UP 34 FROM 848 MILLION A YEAR EARLIER NORTHROP SAID SALES FOR THE LATEST QUARTER TOTALED 127 BILLION DOWN SLIGHTLY FROM 13 BILLION THE LATEST EARNINGS INCLUDED AN 18 MILLION LOSS PROVISION FOR WORK ON THE TRISERVICE STANDOFF ATTACK MISSILE PROGRAM THE COMPANY SAID THE PROVISION WAS MADE TO COVER ADDITIONAL COSTS ESTIMATED TO COMPLETE A FLIGHTTEST PROGRAM THE STANDOFF ATTACK MISSILE IS THE COMPANY'S LAST REMAINING FIXEDPRICE RESEARCH AND DEVELOPMENT CONTRACT THE COMPANY HAS SAID THE POSSIBILITY OF FUTURE PROVISIONS REMAINS 9304220163 930422 AMOCO REPORTS A FIRSTQUARTER PROFIT AS EARNINGS FROM OPERATIONS ROSE 33 BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL AMOCO CORP POSTED NET INCOME OF 229 MILLION FOR THE FIRST QUARTER IN CONTRAST TO A YEAREARLIER LOSS AS UNDERLYING OPERATING PROFIT IMPROVED 33 AMOCO THE FIRST MAJOR OIL COMPANY TO REPORT FIRSTQUARTER RESULTS IS EXPECTED TO BE AN INDUSTRY BELLWETHER ANALYSTS EXPECT THE OIL INDUSTRY TO SHOW EARNINGS GAINS BUT QUICKLY NOTE THAT LAST YEAR'S FIRST QUARTER WAS DEPRESSED FOR MOST OF THE COMPANIES THE QUARTER ISN'T A PARTICULARLY STRONG ONE FOR AMOCO BUT SHOWS SIGNIFICANT IMPROVEMENT OVER LAST YEAR SAID EUGENE NOWAK AN OIL ANALYST AT DEAN WITTER REYNOLDS INC IN NEW YORK HE ESTIMATES THE INDUSTRY ON AVERAGE WILL RECORD AN OPERATING PROFIT INCREASE OF 45 RESULTS WILL VARY DEPENDING ON THE GEOGRAPHIC SPREAD OF A COMPANY'S ASSETS OIL COMPANIES LIKE AMOCO WITH LARGE DOMESTIC NATURAL GAS PRODUCTION SHOULD SEE SIZABLE INCREASES IN PRODUCTION PROFITS BECAUSE PRICES WERE SHARPLY ABOVE LAST YEAR'S DEPRESSED LEVELS AMOCO SAID THAT IT SOLD GAS AT AN AVERAGE PRICE OF 182 PER THOUSAND CUBIC FEET IN THE FIRST QUARTER UP 25 FROM A YEAR EARLIER AND THAT SALES VOLUME WAS 12 HIGHER CURRENTLY GAS PRICES ARE EVEN STRONGER OIL PRICES IN THE FIRST QUARTER WERE SLIGHTLY HIGHER THAN A YEAR EARLIER MR NOWAK SAID GASOLINE REFINING AND MARKETING MARGINS WERE STRONG ON THE WEST COAST BUT WEAK IN THE REST OF THE COUNTRY AMOCO DOESN'T MARKET ON THE WEST COAST BUT CHEVRON CORP UNOCAL CORP AND ATLANTIC RICHFIELD CO DO HE SAID FAR EAST REFINING AND MARKETING MARGINS WERE HEALTHY BUT EUROPEAN MARGINS WERE WEAK AMOCO DOESN'T MARKET OVERSEAS BUT EXXON CORP MOBIL CORP AND TEXACO INC HAVE SIZABLE OPERATIONS ABROAD AMOCO'S FIRSTQUARTER NET INCOME INCLUDED A CHARGE OF 170 MILLION FOR THE WRITEDOWN OF THE VALUE OF EXPLORATION AND PRODUCTION OPERATIONS IN THE CONGO THE COMPANY HAD A GAIN OF 56 MILLION FROM TAX BENEFITS ASSOCIATED WITH THE DISPOSITION OF CERTAIN OPERATIONS THE COMPANY'S PERSHARE PROFIT AFTER THE ONETIME ITEMS WAS 46 CENTS A YEAR EARLIER AMOCO HAD A LOSS OF 619 MILLION OR 125 A SHARE WHICH INCLUDED CHARGES OF 924 MILLION FOR ACCOUNTING CHANGES AND A GAIN OF 48 MILLION AMOCO'S OPERATING PROFIT ROSE TO 343 MILLION OR 69 CENTS A SHARE IN THIS YEAR'S FIRST QUARTER FROM 257 MILLION OR 52 CENTS A SHARE A YEAR EARLIER REVENUE CLIMBED 92 TO 698 BILLION FROM 639 BILLION IN CHICAGO H LAURANCE FULLER AMOCO'S CHAIRMAN CREDITED COSTREDUCTION EFFORTS IN ALL SEGMENTS OF THE BUSINESS FOR SOME OF THE IMPROVEMENT IN OPERATING PROFIT AMOCO'S CHEMICAL PROFITS ROSE 80 TO 54 MILLION MR FULLER RECENTLY TOLD SECURITIES ANALYSTS IN NEW YORK THAT THE COMPANY'S CHEMICAL BUSINESS IS IN THE PROCESS OF A MILDLY IMPROVING TURNAROUND BUT THAT HE DOESN'T EXPECT A RETURN ANYTIME SOON TO THE ROBUST PROFITS SEEN AT THE PEAK OF THE LAST CHEMICAL INDUSTRY CYCLE IN 1988 ANALYSTS DON'T EXPECT THE SAME MAGNITUDE OF CHEMICALPROFIT INCREASES AT OTHER OIL COMPANIES MR FULLER ALSO TOLD ANALYSTS THAT OVER THE NEXT 10 YEARS HE HOPES TO DOUBLE THE SIZE OF AMOCO'S CHEMICAL COMPANY BOOSTING IT TO 16 OF AMOCO'S TOTAL ASSETS IN LATE NEW YORK STOCK EXCHANGE TRADING AMOCO WAS QUOTED AT 5625 DOWN 1625 9304220162 930422 GIBSON GREETINGS TO BUY FIRM CINCINNATI GIBSON GREETINGS INC SAID IT REACHED AN AGREEMENT TO ACQUIRE PAPER FACTORY OF WISCONSIN INC A CHAIN OF 106 RETAIL PAPER PARTYPRODUCTS STORES TERMS WEREN'T DISCLOSED GIBSON DESIGNS AND MAKES GREETING CARDS GIFT WRAPPING PAPER AND RELATED SPECIALTY PRODUCTS 9304220161 930422 MUNIBOND INVESTORS NEED MORE PROTECTION SEC'S ROBERTS SAYS WASHINGTON INVESTORPROTECTION MEASURES MUST KEEP PACE WITH THE PROFUSION OF EXOTIC INVESTMENT INSTRUMENTS BEING DEVELOPED IN THE MUNICIPALBOND MARKET SAID SECURITIES AND EXCHANGE COMMISSIONER RICHARD ROBERTS CITING A HOST OF COMPLEX NEW MUNIMARKET PRODUCTS AND THE INCREASING PARTICIPATION OF INDIVIDUAL INVESTORS IN THE MUNICIPAL MARKET MR ROBERTS SAID THE POTENTIAL MOVEMENT OF SOCALLED DERIVATIVE PRODUCTS INTO THE PORTFOLIOS OF INDIVIDUAL INVESTORS RAISES NEW CONCERNS OVER INVESTOR PROTECTION AND INVESTMENT SUITABILITY THE COMMISSIONER SUGGESTED THAT INVESTORS FOR WHOM CONVENTIONAL MUNICIPAL BONDS MAY BE APPROPRIATE AREN'T LIKELY TO BE FOUND AMONG THE INVESTORS FOR WHOM ESOTERIC NEW MUNI INSTRUMENTS SUCH AS INVERSE FLOATERS DETACHABLE CALL OPTIONS AND STRIPS AND PIECES MAY BE APPROPRIATE MR ROBERTS SAID SOME NEW DERIVATIVE PRODUCTS APPARENTLY ARE BEING DEVELOPED SPECIFICALLY WITH RETAIL INVESTORS IN MIND AS FIRMS EXPAND SALES ACTIVITY IN THIS AREA THE NEED FOR SPECIAL TRAINING AND QUALIFICATION STANDARDS SALES AND SUPERVISORY PROCEDURES AND ADEQUATE DISCLOSURE TO INVESTORS BECOMES MUCH GREATER MR ROBERTS SAID IN A SPEECH TO THE MUNICIPAL FORUM OF NEW YORK SAYING THESE NEW WALL STREET PRODUCTS SOON WILL BE ARRIVING ON MAIN STREET MR ROBERTS SAID THE SEC AND THE MUNICIPAL SECURITIES RULEMAKING BOARD NEED TO DETERMINE HOW THESE INSTRUMENTS SHOULD BE TREATED TO BEST PROTECT INVESTORS HE NOTED THAT THE RULEMAKING BOARD A SELFREGULATORY BODY SUBJECT TO SEC OVERSIGHT IS CONDUCTING A CUSTOMER PROTECTION STUDY 9304220160 930422 SHORT INTEREST ON BIG BOARD DECLINES 25 CHRYSLER MARRIOTT TOTALS SHOW GAINS WALMART AND DISNEY POST DROPS BY ROBERT J BRENNAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHORT INTEREST ON THE NEW YORK STOCK EXCHANGE FELL 25 AT MIDAPRIL ALTHOUGH IT CONTINUED ABOVE 900 MILLION SHARES A LEVEL IT HAS EXCEEDED SINCE LAST AUGUST SHORT INTEREST ON THE AMERICAN STOCK EXCHANGE ROSE 6 DESPITE THE HISTORIC LEVELS OF RECENT MONTHS SHORT INTEREST HAS BECOME DIFFICULT TO USE AS A TRUE SIGN OF INVESTOR SENTIMENT THAT'S BECAUSE MUCH OF IT IS ATTRIBUTABLE TO PROGRAM TRADING OF LARGE VOLUMES OF SECURITIES BY INSTITUTIONAL INVESTORS THAT INVOLVES HEDGING AGAINST OTHER INVESTMENT RISKS RATHER THAN PURE BETS AGAINST INDIVIDUAL STOCKS WALT DISNEY CO HAD THE MOST SHARES HELD SHORT A TOTAL OF 144 MILLION AT THE END OF THE RECENT TRADING MONTH AT MIDAPRIL THAT WAS A DECLINE HOWEVER OF NEARLY 900000 SHARES FROM THE PRIOR MONTH CHRYSLER CORP'S SHORT INTEREST WAS SECONDHIGHEST AT 138 MILLION SHARES AN INCREASE OF NEARLY 11 MILLION BOTH COMPANIES HAVE SHOWN LARGE SHORT INTEREST POSITIONS FOR MANY MONTHS MARRIOTT CORP'S SHORT INTEREST ROSE TO NEARLY 129 MILLION SHARES FROM 103 MILLION THE MONTH BEFORE THE COMPANY HAS BEEN LABORING TO MOLLIFY SHAREHOLDERS AND DEBTHOLDERS OVER ITS CONTROVERSIAL PLAN TO SPLIT ITSELF INTO TWO COMPANIES ONE A RELATIVELY DEBTFREE HOTEL MANAGEMENT CONCERN AND THE OTHER A DEBTHEAVY REAL ESTATE COMPANY SEVERAL COMPANIES HAD SUBSTANTIAL DECLINES IN SHORT INTEREST WALMART STORES INC'S TOTAL DROPPED TO 107 MILLION FROM 163 MILLION AT MIDMARCH THE DISCOUNT RETAILER'S SHARES HAD FALLEN ABOUT 20 IN THE WEEKS AFTER ITS 2FOR1 STOCK SPLIT IN EARLY MARCH BANC ONE CORP'S SHORT INTEREST DROPPED TO FIVE MILLION SHARES FROM 117 MILLION AS ARBITRAGERS CLOSED SHORT POSITIONS FOLLOWING THE COMPLETION OF BANC ONE'S STOCKSWAP ACQUISITION OF ARIZONA'S VALLEY NATIONAL CORP AT THE END OF MARCH ARBS OFTEN TAKE LARGE SHORT POSITIONS BEFORE STOCK SWAPS ARE COMPLETED PROFITING FROM SMALL DISCREPANCIES IN THE MARKET PRICE OF THE STOCKS AND THE STATED MERGER VALUES CITICORP'S SHORT INTEREST CONTINUED TO DECLINE AS THE BANKING CONCERN'S FORTUNES AND STOCK PRICE IMPROVE TOTAL SHORT INTEREST FELL TO 65 MILLION SHARES FROM 88 MILLION CITICORP'S SHARES CURRENTLY TRADING AT ABOUT 28 WERE UNDER 10 LESS THAN TWO YEARS AGO NEW YORK EXCHANGE SHORT INTEREST DECLINED AT THE APRIL 15 SETTLEMENT DATE TO 966717904 SHARES FROM A REVISED 991162510 AT MIDMARCH ON THE AMEX SHORT INTEREST ROSE TO 77385677 SHARES FROM AN ADJUSTED 72945911 THE MONTH INCLUDED THE 22 TRADING DAYS THROUGH APRIL 7 AT MIDAPRIL 1992 SHORT INTEREST VOLUME WAS 718742237 SHARES ON THE BIG BOARD AND 61984206 SHARES ON THE AMEX TRADERS WHO SELL SHORT BORROW STOCK AND SELL IT BETTING THAT THE STOCK'S PRICE WILL DECLINE AND THAT THEY CAN BUY THE SHARES BACK LATER AT A LOWER PRICE FOR RETURN TO THE LENDER SHORT INTEREST IS THE NUMBER OF SHARES THAT HAVEN'T YET BEEN PURCHASED FOR RETURN TO LENDERS ALTHOUGH A SUBSTANTIAL SHORT POSITION REFLECTS HEAVY SPECULATION THAT A STOCK'S PRICE WILL DECLINE SOME INVESTORS CONSIDER AN INCREASE IN SHORT INTEREST BULLISH BECAUSE THE BORROWED SHARES EVENTUALLY MUST BE BOUGHT BACK FLUCTUATION IN SHORT INTEREST OF CERTAIN STOCKS ALSO MAY BE CAUSED PARTLY BY ARBITRAGING THE FIGURES OCCASIONALLY INCLUDE INCOMPLETE TRANSACTIONS IN RESTRICTED STOCK THE LEVEL OF NEGATIVE SENTIMENT MEASURED BY THE BIG BOARD SHORT INTEREST RATIO ROSE AGAIN TO 386 FROM 37 AT MIDMARCH AND 35 AT MIDFEBRUARY THE RATIO IS THE NUMBER OF TRADING DAYS AT THE EXCHANGE'S AVERAGE DAILY TRADING VOLUME THAT WOULD BE REQUIRED TO CONVERT THE TOTAL SHORT INTEREST POSITION AVERAGE DAILY NEW YORK EXCHANGE VOLUME FOR THE 22 TRADING DAYS WAS 250639545 SHARES SOME ANALYSTS SUGGEST HOWEVER THAT THE RATIO HAS WEAKENED IN VALUE AS AN INDICATOR BECAUSE OPTIONS AND OTHER PRODUCTS CAN BE USED TO HEDGE SHORT POSITIONS 9304220159 930422 MORE THAN AT MOST TOURIST TRAPS HERE YOU CAN REALLY GET STUNG BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL THE BIG BUG OUTSIDE THE OFFICE OF DAVID FRANZ MAYOR OF HIDALGO TEXAS REPULSED HIM AT FIRST I SAID A MONUMENT TO THE KILLER BEE WOULDN'T FLY THAT IT WOULD SCARE PEOPLE AWAY HE SAYS INSTEAD TOURISTS ARE ABUZZ ABOUT THE BEE STATUE A 20FOOTLONG FIBERGLASS AND STEEL REPLICA PAINTED IN LIFELIKE YELLOW AND BLACK EVERY WEEK DOZENS OF VISITORS ASK MR FRANZ TO POSE FOR SNAPSHOTS BY THE CITY'S NEW SYMBOL AND AS THE ANNUAL BEESWARMING SEASON ARRIVES HIDALGO IS EMBRACING A HERITAGE IT HAD LONG FEARED THE RIO GRANDE VALLEY TOWN OF 3500 PEOPLE WAS ONE OF THE PLACES IN THE US WHERE THE OVERLY AGGRESSIVE AFRICANIZED BEES WERE FIRST SPOTTED IN 1990 THEIR COMING HAD BEEN EXPECTED FOR 30 YEARS SINCE THEIR ANCESTORS ESCAPED FROM A LABORATORY IN BRAZIL AND BEGAN MIGRATING NORTH MORE THAN 700 PEOPLE NONE IN THE US HAVE BEEN KILLED BY THE BEES TO MAKE HONEY OUT OF HORROR JOE VERA III PRESIDENT OF HIDALGO'S CHAMBER OF COMMERCE SUGGESTED A TOURISTATTRACTING STATUE TO COMPETE WITH THOSE IN OTHER SMALL TEXAS TOWNS INCLUDING A MULE IN MULESHOE AND A ROAD RUNNER IN FORT STOCKTON SO MR VERA PERSUADED HIDALGO CITY OFFICIALS TO SHELL OUT 20000 FOR THE BEE STATUE SCULPTED BY FAST CORP SPARTA WIS FAST WHICH ALSO MADE THE 145FOOTLONG MUSKIE ATOP THE FRESHWATER FISHING HALL OF FAME IN HAYWARD WIS SAYS THE BEE IS ONE OF A KIND AND IT'S PUTTING HIDALGO ON THE MAP INSISTS MR VERA THERE ARE A LOT OF WACKY ROADSIDE ATTRACTIONS AROUND THE US NOW WE'RE ONE OF THEM HIDALGO RETAILERS SAY THE NUMBER OF SHOPPING VISITORS HAS DOUBLED SINCE LAST DECEMBER WHEN THE BEE BUZZED INTO TOWN ON A FLOAT MR FRANZ WHO HAS THE STATUE ROLLED AROUND TOWN PERIODICALLY SAYS I LIKE IT BUT I DON'T KNOW THAT IT ALWAYS NEEDS TO BE RIGHT OUTSIDE MY OFFICE 9304220158 930422 WHO'S NEWS FIRST FEDERAL CAPITAL CORP FIRST FEDERAL CAPITAL CORP LA CROSSE WIS THOMAS W SCHINI 57YEAROLD PRESIDENT AND CHIEF EXECUTIVE OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN OF THIS BANK HOLDING COMPANY SUCCEEDING JAMES O ASH 71 WHO RESIGNED FOR PERSONAL REASONS 9304220157 930422 EQUITABLE RAISES 779 MILLION VIA STOCK SALE PROCEEDS OF PREFERRED OFFER WILL BE USED TO BOOST INSURANCE UNIT'S CAPITAL BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN A MOVE THAT SIGNIFICANTLY ENHANCES ITS FINANCIAL STRENGTH EQUITABLE COS RAISED 779 MILLION THROUGH A SALE OF CONVERTIBLE PREFERRED STOCK THE OFFERING WHICH RAISED 200 MILLION MORE THAN EXPECTED BRINGS TO MORE THAN 2 BILLION THE AMOUNT OF CAPITAL THE COMPANY HAS RAISED SINCE IT WENT PUBLIC LAST JULY THIS IS A VOTE OF CONFIDENCE THAT THE INVESTOR COMMUNITY THINKS EQUITABLE MANAGEMENT IS ON THE RIGHT TRACK SAID SALOMON BROTHERS ANALYST MARGARET ALEXANDRE EQUITABLE SAID IT WILL PUT A LARGE AMOUNT OF THE PROCEEDS INTO ITS LIFE INSURANCE UNIT THE INSURANCE SUBSIDIARY WILL USE THE MONEY TO MEET NEW CAPITAL STANDARDS GOING INTO EFFECT AT YEAR END THE STANDARDS WORKED OUT BY THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS MEASURE WHETHER A COMPANY HAS ENOUGH CAPITAL TO COMPENSATE FOR THE RISK OF ITS INVESTMENTS AND OPERATIONS COMPANIES WITH INSUFFICIENT CAPITAL FACE SEVERE REGULATORY SCRUTINY BEFORE THE OFFERING EQUITABLE ONLY HAD ABOUT 85 OF THE MINIMUM AMOUNT OF THE CAPITAL REQUIRED UNDER THE NEW RULES THE LATEST STOCK OFFERING AS WELL AS CERTAIN ACCOUNTING ADJUSTMENTS GIVE THE COMPANY 105 TO 110 OF THE MINIMUM THEY'RE NOW IN A POSITION TO EXCEED THE MINIMUM TARGETS SAID LARRY MAYEWSKI SENIOR VICE PRESIDENT OF AM BEST CO ADDING THAT EQUITABLE'S CAPITAL NOW COMPARES FAVORABLY WITH ITS COMPETITORS' OF THE STOCK SOLD EQUITABLE'S LARGEST STOCKHOLDER PARISBASED GROUPE AXA SA BOUGHT 49 INSTITUTIONAL INVESTORS BOUGHT THE REST THIS ACHIEVEMENT DEMONSTRATES ONCE AGAIN THE BENEFIT OF BEING A PUBLIC COMPANY SAID EQUITABLE CHAIRMAN RICHARD JENRETTE EQUITABLE'S FINANCIAL RESULTS CONTINUE TO STRUGGLE UNDER THE WEIGHT OF REAL ESTATE INVESTMENTS MADE DURING THE 1980S AT YEAR END 388 MILLION OF ITS 593 BILLION MORTGAGE PORTFOLIO WAS DELINQUENT A 30 JUMP FROM A YEAR EARLIER ACCORDING TO EQUITABLE CHIEF FINANCIAL OFFICER JERRY DE ST PAER THE INCREASE EXAGGERATES THE ECONOMIC REALITY HE SAID LOANS THAT ARE BEING RESTRUCTURED ARE TEMPORARILY CLASSIFIED AS DELINQUENT ACCOUNTING FOR MUCH OF THE INCREASE HE SAID THE LOANS ARE BEING RESTRUCTURED AT TERMS EQUAL OR NEARLY EQUAL TO THEIR ORIGINAL TERMS EQUITABLE ALSO DIRECTLY OWNS 467 BILLION OF PROPERTIES WHICH IT HOLDS ON ITS BOOKS AT 80 OF THEIR ORIGINAL COST SOME FINANCIAL INSTITUTIONS HAVE WRITTEN DOWN THEIR REAL ESTATE BY FAR GREATER AMOUNTS BUT MR DE ST PAER SAID EQUITABLE'S PROPERTIES ARE BETTER BECAUSE MOST WERE ACQUIRED AS INVESTMENTS RATHER THAN THROUGH FORECLOSURE THE QUALITY OF OUR REAL ESTATE IS QUITE DIFFERENT MR DE ST PAER SAID WHILE SOME STOCK ANALYSTS CONTINUE TO VOICE CONCERN OVER EQUITABLE'S REAL ESTATE MOST BELIEVE THE COMPANY HAS SET UP ADEQUATE RESERVES TO ABSORB FUTURE LOSSES I DON'T THINK THEIR PORTFOLIO IS AS ENCUMBERED AS PEOPLE PERCEIVE IT TO BE SAID OPPENHEIMER & CO ANALYST MYRON PICOULT ON THE NEW YORK STOCK EXCHANGE YESTERDAY EQUITABLE FINISHED UNCHANGED AT 21125 A SHARE 9304220156 930422 INTERNATIONAL COURT GIVES YELTSIN A BOOST IN REFERENDUM PANEL EASES COUNTING RULES ON 2 QUESTIONS BUT DOES LITTLE TO BREAK GRIDLOCK BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW A CRUCIAL DECISION BY RUSSIA'S CONSTITUTIONAL COURT BOOSTS PRESIDENT BORIS YELTSIN'S POLITICAL FORTUNES IN THE REFERENDUM SCHEDULED FOR SUNDAY BUT DOES LITTLE TO BREAK THE LOGJAM THAT HAS PARALYZED THE NATIONAL GOVERNMENT THE CONGRESS OF PEOPLE'S DEPUTIES TO MAKE IT TOUGHER FOR MR YELTSIN TO WIN HAD REQUIRED THAT IN ORDER FOR THE PRESIDENT TO CLAIM VICTORY ON ANY OF THE REFERENDUM'S FOUR QUESTIONS HE MUST OBTAIN YES VOTES FROM A MAJORITY OF ALL ELIGIBLE RUSSIAN VOTERS NOT JUST OF THOSE WHO ACTUALLY CAST BALLOTS THE COURT YESTERDAY OVERTURNED THE STRINGENT COUNTING REQUIREMENTS ON TWO OF THE FOUR QUESTIONS ON TRUST IN THE PRESIDENT AND ON SUPPORT FOR HIS REFORMS BUT THE CONSTITUTIONAL COURT LEFT IN PLACE THE CONGRESS'S TOUGHER REQUIREMENT REGARDLESS OF TURNOUT FOR JUDGING RESULTS OF THE OTHER TWO QUESTIONS ON WHETHER TO HOLD EARLY PRESIDENTIAL ELECTIONS AND EARLY PARLIAMENTARY ELECTIONS IGOR GOURINOVITCH THE LAWYER FOR THE LIBERAL DEPUTIES WHO SUPPORT MR YELTSIN AND RAISED A COURT CHALLENGE TO THE CONGRESS'S ORIGINAL REQUIREMENTS SAID THE RULING WASN'T TOTALLY WHAT HE WAS HOPING FOR BUT ADDED THAT THIS DECISION IS VERY SATISFACTORY FOR THE SIDE I REPRESENT THE DECISION TO EASE THE COUNTING ON THE FIRST TWO QUESTIONS GREATLY HELPS MR YELTSIN'S BID TO USE THE REFERENDUM TO CLAIM SOLID PUBLIC SUPPORT MANY VOTERS ARE DISENCHANTED WITH MR YELTSIN'S REFORMS BUT SAY THEY WILL SUPPORT HIM BECAUSE THEY SEE NO VIABLE ALTERNATIVE HOWEVER THE DECISION TO RETAIN THE TOUGH COUNTING ON THE TWO EARLYELECTION QUESTIONS ALMOST ASSURES THAT SUCH ELECTIONS WON'T BE HELD EVEN THE MOST OPTIMISTIC POLLS PREDICT LITTLE MORE THAN A 60 TURNOUT SUNDAY AS A RESULT THE REFERENDUM WHICH MIGHT HAVE PROVIDED A TURNING POINT IN THE POLITICAL IMPASSE BETWEEN MR YELTSIN AND THE CONGRESS WILL END UP SIMPLY SUPPORTING THE STATUS QUO THE COURT'S RULING MAKES IT LIKELY THAT BOTH THE PRESIDENT AND THE PARLIAMENT WILL REMAIN IN PLACE CLAIMING THE REFERENDUM RESULTS AS PROOF OF PUBLIC SUPPORT AND CONTINUING TO FIGHT OVER THE COURSE OF ECONOMIC REFORMS THE MAKEUP OF THE GOVERNMENT AND A NEW CONSTITUTION IT'S A POLITICAL MANEUVER SAID DEPUTY PREMIER ANATOLI CHUBAIS WHO HEADS THE PRIVATIZATION PROGRAM THAT IS CENTRAL TO THE CURRENT ECONOMIC REFORMS THE PEOPLE'S DEPUTIES ARE LETTING YELTSIN SECURE THE SUPPORT OF THE POPULATION PROVIDED YELTSIN RENOUNCES THE IDEA OF EARLY PARLIAMENTARY ELECTIONS IT ISN'T CLEAR WHAT MR YELTSIN WILL DO IF HE WINS HE SAYS FLATLY THAT REFORMS WILL CONTINUE AND AIDES SAY HE HAS A SERIES OF DECREES READY TO ENACT LIBERALS AND MANY YOUNG ENTREPRENEURS HOPE A POSITIVE VOTE WILL GIVE HIM THE CONFIDENCE TO PUSH REFORMS MORE DILIGENTLY STILL MR YELTSIN HAS TRIED TO APPEAL TO SUCH A BROAD CROSSSECTION OF VOTERS THAT HE MAY BE UNDERMINING HIS OWN GOALS HE HAS MADE EXPENSIVE POPULIST PROMISES AND SAID HE REALIZES THE REFORM STRATEGY MAY NEED TO BE CHANGED SOME LIBERALS SEE A WORRISOME SIGN IN MR YELTSIN'S APPOINTMENT THIS WEEK OF THE CONSERVATIVE OLEG LOBOV TO REPLACE FORMER ECONOMICS MINISTER ANDREI NECHAYEV A MEMBER OF THE ORIGINAL REFORM TEAM OF FORMER PREMIER YEGOR GAIDAR THE APPOINTMENT WILL PUTTING IT MILDLY CREATE PROBLEMS FOR FINANCE MINISTER BORIS FYODOROV WROTE THE LIBERAL NEWSPAPER SEVODNYA IN A SARCASTIC COMMENTARY GOVERNMENT REALLY BECOMES A COALITION' WHEN TWO KEY ECONOMIC MINISTERS STICK TO DIAMETRICALLY OPPOSED IDEOLOGIES WHILE THE GOVERNMENT FINE TUNES ECONOMIC REFORMS MR YELTSIN APPEARS TO BE PLANNING ANOTHER ATTEMPT TO REMOVE THE SOVIETERA CONGRESS FROM THE PLAYING FIELD HE HAS INDICATED THAT IF HE CLEARS THE HURDLE SUNDAY HE WILL FOCUS ON GETTING A NEW CONSTITUTION PASSED THAT WOULD AMONG OTHER THINGS REPLACE THE CONGRESS WITH A SMALLER BICAMERAL PARLIAMENT 9304220155 930422 BUSINESS BRIEF SOUTHLAND CORP CONVENIENCESTORE CONCERN NARROWED 1STQUARTER LOSS SOUTHLAND CORP SAID STRONGER OPERATING RESULTS AND LOWER INTEREST COSTS HELPED IT TRIM ITS NET LOSS FOR THE FIRST QUARTER BY ROUGHLY TWOTHIRDS EVEN AS TOTAL REVENUE DROPPED THE DALLAS CONVENIENCESTORE OPERATOR REPORTED A NET LOSS OF 159 MILLION OR FOUR CENTS A SHARE FOR THE QUARTER ENDED MARCH 31 COMPARED WITH A LOSS OF 449 MILLION OR 11 CENTS A SHARE A YEAR EARLIER TOTAL REVENUE FOR THE QUARTER SHRANK 10 TO 160 BILLION FROM 178 BILLION A YEAR EARLIER THE COMPANY BLAMED THE DECLINE ON LOWER SAMESTORE SALES THE ELIMINATION OF 330 CONVENIENCE STORES AND THE SALE OR CLOSURE OF ITS DISTRIBUTION AND FOOD PROCESSING CENTERS WHICH HAD CONTRIBUTED 1029 MILLION IN SALES IN THE YEARAGO QUARTER CLARK MATTHEWS PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY EXPECTS TO REPORT POSITIVE EARNINGS FOR 1993 THE COMPANY ALSO SAID IT AGREED TO SELL AND LICENSE 150 STORES IN TEXAS AND NEW MEXICO TO SOUTHWEST CONVENIENCE STORES INC TERMS WEREN'T DISCLOSED 9304220154 930422 WHO'S NEWS MERIDIAN BANCORP INC MERIDIAN BANCORP INC READING PA ROBERT W CARDY 56 YEARS OLD CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CARPENTER TECHNOLOGY CORP AND DAVID E SPARKS 48 MERIDIAN'S VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER WERE ELECTED DIRECTORS AT THIS BANK HOLDING COMPANY FILLING VACANCIES ON ITS 20MEMBER BOARD 9304220153 930422 AS GAYS MARCH MILITARY BAN HAUNTS CLINTON BY ALBERT R HUNT ON NOV 19 THE PRESIDENTELECT AND THE CHAIRMAN OF THE JOINT CHIEFS OF STAFF HELD THEIR FIRST POSTELECTION MEETING AT THE HAYADAMS HOTEL IN WASHINGTON BILL CLINTON BLUNDERED THAT DAY AND THE POLITICAL PRICE HE'S PAYING MAY ESCALATE THIS WEEKEND THE SUBJECT OF LIFTING THE BAN ON GAYS IN THE MILITARY WAS ADDRESSED IN PASSING THAT DAY GEN COLIN POWELL THE JOINT CHIEFS CHAIRMAN ARGUED FOR AN EXHAUSTIVE STUDY AND MR CLINTON PROMISED WIDESPREAD CONSULTATION BEFORE A FINAL DECISION A LITTLE WHILE LATER THE PRESIDENTELECT TAPPED AN OLD POLITICAL FRIEND JOHN HOLUM TO SPEARHEAD THIS EFFORT DURING THE TRANSITION BUT BY THE TIME MR CLINTON TOOK OFFICE THE ISSUE HAD IMPLODED FORCING HIM TO BACKTRACK FROM A CAMPAIGN COMMITMENT ALBEIT A NOT VERY PROMINENT ONE AND PRODUCING A PROTRACTED CONTROVERSY THAT DISTRACTS FROM HIS HOPE TO FOCUS WITH LASERLIKE INTENSITY ON THE ECONOMY THE TENSION OVER THIS EMOTIONAL ISSUE LIKELY WILL BE EXACERBATED THIS WEEKEND WHEN UP TO A MILLION GAY AMERICANS DESCEND ON WASHINGTON FOR A GAY PRIDE MARCH IF PROMISED PROVOCATIONS OCCUR RANGING FROM A DRAG QUEEN CONTEST TO LAYING PINK TRIANGLES ON 25000 GRAVES AT ARLINGTON NATIONAL CEMETERY TO HONOR WAR DEAD WHO SUPPOSEDLY WERE GAY IT SURELY WILL INFLAME MORE PUBLIC RESENTMENT THIS FIGHT COULD HAVE BEEN LARGELY AVOIDED INSTEAD OF HAVING THAT PERFUNCTORY CONVERSATION WITH THE COUNTRY'S TOP GENERAL THE PRESIDENT SHOULD HAVE SAID GENERAL I KNOW WE DISAGREE SOMEWHAT ON THIS ISSUE BUT I HAVE ENORMOUS RESPECT FOR THE MILITARY'S ABILITY TO ADAPT INDEED TO LEAD ON CONTEMPORARY SOCIAL ISSUES AS YOUR COMMANDER IN CHIEFTOBE I AM DESIGNATING YOU TO COME UP WITH A WORKABLE SOLUTION THAT WILL END DISCRIMINATION IN THE FIRST SIX MONTHS OF MY PRESIDENCY CLINTON PARTISANS CONTEND THAT WASN'T POSSIBLE THAT GEN POWELL WAS ADAMANTLY OPPOSED TO LIFTING THE BAN THAT'S A MISREADING OF GEN POWELL LESS THAN TWO WEEKS AFTER THAT MEETING THE JOINT CHIEFS CHAIRMAN WHILE CONTINUING TO EXPRESS RESERVATIONS ABOUT THE PRACTICAL EFFECTS OF LIFTING THE BAN POINTEDLY TOOK ISSUE WITH CRITICS WHO SAID THIS WOULD DESTROY THE MILITARY AT AN AMERICAN UNIVERSITY SPEECH HE SAID I NEVER HAVE BEEN OF THE VIEW THAT THIS WOULD BREAK THE ARMED FORCES THAT THERE WILL BE MASS RESIGNATIONS THOSE WHO KNOW GEN POWELL SAY HIS CONCERN HAS BEEN OVER SOME OF THE POTENTIAL PRACTICAL PROBLEMS COLIN IS NO HOMOPHOBE SAYS RICHARD ARMITAGE A FORMER TOP DEFENSE DEPARTMENT OFFICIAL AND CLOSE FRIEND I'VE TALKED ABOUT EVERY ISSUE THAT A MAN CAN DISCUSS WITH COLIN AND I'VE NEVER ONCE HEARD HIM EXPRESS ANY ANTIGAY SENTIMENTS MOST HOMOPHOBES ARE INSECURE WHILE COLIN POWELL IS A VERY SECURE MAN THE SAME ISN'T NECESSARILY TRUE FOR ALL THE JOINT CHIEFS HOWEVER MOREOVER PRESIDENT CLINTON FAILED TO UNDERSTAND THE MILITARY MINDSET THE BELIEF IN THE CHAIN OF COMMAND IF GIVEN SUCH AN ORDER BY HIS COMMANDER IN CHIEF THERE'S LITTLE DOUBT THAT THIS POLITICALLY RESOURCEFUL GENERAL WOULD HAVE FOUND A WAY TO ACCOMPLISH THE OBJECTIVE WITH MINIMAL FALLOUT SOME GAY LEADERS NO DOUBT WOULD HAVE PROTESTED THEY'RE MORE INTERESTED IN USING THE ISSUE FOR THEIR OWN POLITICAL PURPOSES THAN IN AFFECTING THE POLICY THAT'S WHY THIS IS DIFFERENT FROM HARRY TRUMAN'S DECISION TO RACIALLY INTEGRATE THE ARMED SERVICES 45 YEARS AGO A MOVE THAT STROM THURMOND CHARGED WAS UNAMERICAN YET THE BEST THAT THE WHITE HOUSE OR GAY LEADERS CAN HOPE FOR NOW IS EXACTLY THE SORT OF ACCOMMODATION GEN POWELL WOULD HAVE FASHIONED THE PRESIDENT NOW PROMISES A DECISION BY JULY 15 BUT AFTER ALL THE FLAK EVEN BEFORE THIS WEEKEND'S MARCH A COMPROMISE IS UNAVOIDABLE ALONG THE LINES LAID OUT BY CHARLES MOSKOS THE EMINENT MILITARY SOCIOLOGIST AT NORTHWESTERN UNIVERSITY THE MILITARY CAN LIVE WITH THE FOLLOWING A DON'T ASK NEW SERVICE ENTRANTS ABOUT THEIR SEXUAL ORIENTATION AND B DON'T SEEK OUT AND DISMISS GAY SERVICE MEMBERS ON THE OTHER SIDE GAYS MUST CONFORM TO NO PUBLIC EXPRESSION OF THEIR SEXUAL ORIENTATION IN THE ARMED SERVICES FEW WILL BE SATISFIED BUT AS PROF MOSKOS SAYS AT LEAST IT'S A MODUS VIVENDI AND IT WILL ENABLE THE CLINTON ADMINISTRATION TO POINT TO A MAJOR SYMBOLIC ACCOMPLISHMENT WITHOUT UNDERMINING MILITARY EFFECTIVENESS FOR A WHILE THERE UNDENIABLY WILL BE SOME PRACTICAL PROBLEMS TO SORT OUT BUT MR CLINTON IS SUBSTANTIVELY RIGHT IN TRYING TO LIFT THIS BAN IT'S LUDICROUS TO ARGUE THAT LOTS OF GAYS HAVEN'T SERVED ADMIRABLY AND ABLY IN THE HALFCENTURY THE BAN HAS BEEN IN EFFECT PROOF OF THAT FACT IS THAT THE BAN REPEATEDLY HAS BEEN RELAXED DURING WARTIME OR WHEN PERSONNEL NEEDS WERE THE GREATEST AS FOR THE ARGUMENT THAT LIFTING THE BAN WOULD DESTROY UNIT COHESION ADM WILLIAM CROWE GEN POWELL'S PREDECESSOR AS CHAIRMAN OF THE JOINT CHIEFS NOTES THAT IN HIS 47 YEARS IN THE NAVY HE EXPERIENCED A FAIR SHARE OF PROBLEMS VIRTUALLY ALL WERE CAUSED BY HETEROSEXUALS NONE OF THE BLAME FOR THIS DILEMMA RESTS WITH THE PRESIDENT'S POLITICAL FRIEND JOHN HOLUM WHO DILIGENTLY TRIED TO WORK OUT AN ACCORD PRIVATELY WORKING CLOSELY WITH ADM CROWE BUT IT DOES CRYSTALLIZE THE PROBLEM OF MR CLINTON'S BELIEF THAT HIS LONGTIME FRIENDS ARE THE BEST AND BRIGHTEST AND MORE RELIABLE THAN EXISTING INSTITUTIONS NO MATTER HOW TALENTED THESE MANY FRIENDS OF BILL ARE THE PRESIDENT CAN ILL AFFORD TO IGNORE INSTITUTIONS LIKE THE MILITARY OR POLITICAL PARTIES OR EVEN THE BUREAUCRACY AS THIS OTHERWISE INTELLIGENT POLITICIAN IS BENT ON DOING THIS TENDENCY REFLECTS AN ARROGANCE THAT'S GOING TO HAUNT HIM IF HE WANTS TO AVOID ONE OF THE FIRST PAINFUL LESSONS HE HAD BETTER HOPE THE GAY PRIDE MARCH THIS WEEKEND IS FAR TAMER THAN ADVERTISED MR HUNT IS THE JOURNAL'S WASHINGTON BUREAU CHIEF 9304220152 930422 LETTERS TO THE EDITOR WE AREN'T APOLOGISTS FOR ARAB TYRANNIES IN HER REVIEW OF KANAN MAKIYA'S BOOK CRUELTY AND SILENCE GERALDINE BROOKS USING MR MAKIYA'S POLEMICS REFERS TO ABDULRAHMAN MUNIF AND ME AS APOLOGISTS FOR ARAB TYRANNIES STORIES OF SUFFERING IN SADDAM'S IRAQ LEISURE & ARTS APRIL 7 THIS IS BOTH FALSE AND DEFAMATORY MR MUNIF ONE OF THE GREATEST ARAB NOVELISTS TODAY IS A SAUDI NATIONAL WHO WAS STRIPPED OF HIS CITIZENSHIP BY SAUDI ARABIA FOR HIS CRITICISM OF THAT COUNTRY'S GOVERNMENT HE LIVES IN EXILE IN DAMASCUS DURING THE GULF WAR WHICH WAS SUPPORTED BY SYRIA MR MUNIF OPPOSED THE WAR AS WELL AS THE IRAQI INVASION FOR 25 YEARS I HAVE WRITTEN IN SUPPORT OF PALESTINIAN RIGHTS AS WELL AS IN SUPPORT OF ALL THE RIGHTS OF OPPRESSED PEOPLES IN THE MIDDLE EAST I TOO OPPOSED THE GULF WAR AND THE IRAQI INVASION I HAVE BEEN OPENLY CRITICAL OF EVERY MIDDLE EASTERN REGIME THIS CANNOT BE SAID OF MR MAKIYA FOR AT LEAST 20 YEARS HE REMAINED ENTIRELY SILENT ON HUMAN RIGHTS AND THE NATURE OF ARAB REGIMES HE HAS FOUND IT MEET WHEN IT SCARCELY TOOK COURAGE TO SPEAK UP RECENTLY TO ATTACK IRAQ FROM LONDON AND NEW YORK SINCE MR MAKIYA IS SO UNSPARING IN HIS OWN INSINUATIONS IT IS NOT MERELY TRIFLING TO NOTE THAT MAKIYA ASSOCIATES THE FAMILY ARCHITECTURAL FIRM IN WHICH HE WORKED MASTERMINDED THE REBUILDING OF BAGHDAD ORDERED BY SADDAM HUSSEIN DURING THE 1980S MR MAKIYA REMAINED PRUDENTLY SILENT ABOUT HIS PATRON UNTIL THE WORK WAS COMPLETED ONLY THEN DID HE ABANDON HIS SILENCE AND BEGIN TO SPEAK OUT THIS WHOLE EPISODE IS DISCUSSED IN THE JAN 6 1992 NEW YORKER GIVEN SUCH A RECORD IT IS STARTLING TO FIND MR MAKIYA CONFECTING SLANDERS AGAINST PEOPLE WHO HAVE SUFFERED EXILE TORTURE IMPRISONMENT AND DEATH WHILE HE SAT SILENTLY BY IT IS ALSO WORTH NOTING THAT MR MAKIYA NEVER SAID A WORD IN SUPPORT OF SALMAN RUSHDIE WHOSE CAUSE MR MUNIF AND I HAVE CHAMPIONED PUBLICLY IN THE ARAB AND ISLAMIC WORLD 9304220151 930422 WHO'S NEWS VIACOM INC VIACOM INC NEW YORK VAUGHN A CLARKE 39 YEARS OLD WAS NAMED VICE PRESIDENT AND TREASURER OF VIACOM INTERNATIONAL INC THE OPERATING UNIT OF THIS CABLE TELEVISION AND ENTERTAINMENT COMPANY HE SUCCEEDS THOMAS E DOOLEY WHO WAS NAMED SENIOR VICE PRESIDENT CORPORATE DEVELOPMENT LAST YEAR MR CLARKE HAD BEEN ASSISTANT TREASURER 9304220150 930422 WHO'S NEWS SEARS ROEBUCK & CO SEARS ROEBUCK & CO CHICAGO JANE J THOMPSON WAS NAMED EXECUTIVE VICE PRESIDENT OF CREDIT FOR THIS COMPANY'S RETAIL DIVISION MS THOMPSON 41 YEARS OLD HAD BEEN VICE PRESIDENT OF PLANNING FOR THE RETAILER SHE SUCCEEDS PETER R FISHER 57 WHO IS LEAVING THE COMPANY UNDER ITS EARLY RETIREMENT PROGRAM 9304220149 930422 PURITAN STOCK REPURCHASE OVERLAND PARK KAN PURITANBENNETT CORP SAID ITS BOARD AUTHORIZED THE REPURCHASE OF UP TO ONE MILLION SHARES OF THE COMPANY'S COMMON STOCK OUTSTANDING THE RESPIRATION PRODUCTS MAKER SAID PURCHASES WILL BE MADE AT PREVAILING PRICES AS MARKET CONDITIONS WARRANT THE COMPANY EXPECTS THE SHARES TO BE USED FOR ITS EMPLOYEE 401K AND INCENTIVE PLANS AND OTHER CORPORATE PURPOSES PURITANBENNETT WHICH CURRENTLY HAS 12 MILLION COMMON SHARES OUTSTANDING SAID IT BELIEVES ITS COMMON STOCK IS CURRENTLY UNDERVALUED AND THAT A REPURCHASE PROGRAM AT THIS TIME IS IN THE BEST INTEREST OF SHAREHOLDERS 9304220148 930422 INTERNATIONAL TELMEX UNION SEES EMPLOYEES APPROVING PACT BY DIANNA SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY EMPLOYEES OF TELEFONOS DE MEXICO SA WERE EXPECTED TO ACCEPT THE COMPANY'S OFFER TO BOOST SALARIES 99 A SPOKESMAN FOR THE TELEPHONE WORKERS UNION SAID THE UNION'S PAY DEMANDS HAD BEEN MUCH HIGHER AND IT HAD THREATENED A STRIKE IF THEY WEREN'T MET BUT WORKERS APPARENTLY WERE MOLLIFIED BY A COMPANYPROPOSED 150 MILLION INCENTIVE FUND FOR HIGHER PRODUCTIVITY THAT COULD SWELL PAYCHECKS BY AS MUCH AS 40 OVERTIME WORK EXCEPT IN EMERGENCIES WOULD END UNDER THE PROPOSED CONTRACT BY MIDAFTERNOON YESTERDAY WORKERS WERE STILL VOTING A REPRESENTATIVE ASSEMBLY OF THE 50000MEMBER UNION APPROVED THE CONTRACT ON TUESDAY WITH INCENTIVE PAY DANGLING IN THEIR FACES WE THINK WORKERS WILL HAVE THE APPETITE TO APPROVE THE CONTRACT A UNION SPOKESMAN SAID MEXICAN PRESIDENT CARLOS SALINAS DE GORTARI HAS SET A 99 CEILING ON WAGE INCREASES IN A LABOR AND BUSINESS PACTO AIMED AT KEEPING INFLATION TO SINGLE DIGITS THUS THE LABOR DISPUTE PRESENTED TELMEX AS THE TELECOMMUNICATIONS MONOPOLY IS KNOWN WITH A DELICATE SITUATION RESPECT THE PACTO BUT IMPROVE SERVICE WITH THE PAY INCENTIVES PUSHED BY THE UNION'S LEADER FRANCISCO HERNANDEZ REWORKING HIS EARNINGS PROJECTIONS TO TAKE THE NEW LABOR PACT INTO CONSIDERATION RAFAEL BELLO AN ANALYST FOR JAMES CAPEL INC IN NEW YORK FORECAST EARNINGS THIS YEAR OF 575 PER AMERICAN DEPOSITARY RECEIPT UP FROM 485 IN 1992 IF PRODUCTIVITY IS HIGHER EARNINGS COULD PROBABLY IMPROVE FURTHER HE SAID MR BELLO'S ESTIMATE IS BASED ON A BUNDLE OF THE FIRM'S CLASS L SHARES MOREOVER WITH A 33 STAKE IN TELMEX STOCK THE TELEPHONE WORKERS UNION HAS EVEN MORE REASON TO IMPROVE TELMEX SERVICE AND THUS EARNINGS IN NEW YORK TRADING TELMEX ADRS WHICH HAD FALLEN SLIGHTLY ON NEWS OF THE LABOR DISPUTE CLOSED AT 53625 DOWN 875 CENTS 9304220147 930422 WHO'S NEWS MAGAININ PHARMACEUTICALS INC MAGAININ PHARMACEUTICALS INC PLYMOUTH MEETING PA LEONARD S JACOB 44 YEARS OLD WAS NAMED CHIEF OPERATING OFFICER OF THIS BIOPHARMACEUTICAL COMPANY THE NEW POSITION WAS CREATED TO ADMINISTER THE COMPANY'S ANTICIPATED GROWTH FROM THE MANUFACTURING OF ANTIINFECTIVE AND ANTICANCER DRUGS IN COMMERCIAL QUANTITIES DR JACOB WAS PREVIOUSLY EXECUTIVE VICE PRESIDENT OF RESEARCH AND DEVELOPMENT HIS SUCCESSOR WILL BE NAMED LATER THE COMPANY SAID 9304220146 930422 WHO'S NEWS PALL CORP PALL CORP EAST HILLS NY JEREMY K HAYWARDSURRY 50YEAROLD EXECUTIVE VICE PRESIDENT TREASURER AND CHIEF FINANCIAL OFFICER WAS ELECTED A DIRECTOR INCREASING THE BOARD TO 12 MEMBERS PALL CORP MAKES DISPOSABLE FILTERS AND OTHER FLUIDCLARIFICATION PRODUCTS 9304220145 930422 GPA MAY SEEK SOME CONCESSIONS FROM CREDITORS BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GPA GROUP PLC WHICH HAS BEEN UNABLE SO FAR TO RAISE EQUITY FOR ITS GLOBAL RESTRUCTURING IS CONSIDERING ASKING UNSECURED CREDITORS FOR CONCESSIONS TO HELP EASE ITS FINANCIAL BURDEN PEOPLE CLOSE TO THE COMPANY CAUTION THAT ITS CURRENT STRATEGY TO PAY UNSECURED BONDHOLDERS IN FULL HASN'T CHANGED BUT WITH LARGE BOND PAYMENTS COMING DUE AND THE COMPANY HAVING DIFFICULTY RAISING 200 MILLION IN CASH GPA NOW IS DISCUSSING WITH ADVISERS THE POSSIBILITY OF BRINGING BONDHOLDERS INTO THE PLAN TO HELP GPA'S RESTRUCTURING TOWARD THAT END GPA HAS RETAINED DONALDSON LUFKIN & JENRETTE SECURITIES CORP TO ADVISE THE COMPANY ON HOW TO RESTRUCTURE THE GPA'S SECURITIES IF OTHER PARTS OF THE PLAN FAIL PEOPLE CLOSE TO THE COMPANY SAY REPRESENTATIVES OF GPA AND DONALDSON LUFKIN DECLINED TO COMMENT THE SHANNON IRELAND AIRCRAFT LEASING COMPANY HAS MORE THAN 2 BILLION IN UNSECURED BONDS OUTSTANDING THE BULK OF WHICH WAS ISSUED IN THE US IT'S UNCLEAR WHICH SECURITIES GPA WOULD SEEK TO RESTRUCTURE WHILE THE COMPANY MAINTAINS THAT IF IT GETS THE NEW EQUITY IT IS SEEKING IT WILL NOT ASK CREDITORS FOR NEW CONCESSIONS A STRATEGIC INVESTOR WILLING TO TAKE A MAJORITY STAKE COULD DEMAND CONCESSIONS ANYWAY GPA ALSO NEEDS TO RAISE THE 200 MILLION IN EQUITY IN ORDER TO OBTAIN AGREEMENTS FROM LENDERS TO RESTRUCTURE 27 BILLION IN BANK DEBT IF THE COMPANY CANNOT RAISE THE EQUITY IT WOULD HAVE TO ASK ITS BANKS TO CONSIDER RESTRUCTURING ITS DEBT WITHOUT IT BUT ONE OF GPA'S MAIN LENDERS SAID YESTERDAY THAT THE BANKS WOULD BE WARY OF SUCH A MOVE WITHOUT MAJOR REVISIONS IN THE PROPOSED RESTRUCTURING GPA'S BONDS ARE TRADING AT 40 OF THEIR FACE VALUE SUGGESTING THAT THE MARKET DOESN'T BELIEVE THEY WILL BE PAID OFF IN FULL MORE THAN 200 MILLION IN SECURITIES COME DUE BY JUNE WHILE GPA HAS THE CASH TO PAY OFF THE SECURITIES BANKS DON'T WANT THE PAYMENTS MADE WITHOUT AN ACCORD IN PLACE ONE BONDHOLDER SAID HE EXPECTS THE COMPANY TO OFFER HOLDERS EQUITY IN LIEU OF DEBT EVEN IF THE 200 MILLION IN EQUITY IS RAISED GPA HAS BEEN SEEKING CONCESSIONS FROM LENDERS AND 200 MILLION IN NEW EQUITY FROM ITS OWNERS AND POTENTIAL NEW INVESTORS AS PART OF A PLAN TO KEEP THE TROUBLED AIRCRAFT LEASING GIANT AFLOAT AGREEMENTS ALREADY HAVE BEEN REACHED WITH MANUFACTURERS TO DEFER OR CANCEL BILLIONS IN AIRCRAFT ORDERS ALL THE CONCESSIONS ARE DEPENDENT ON OTHER PARTIES REACHING SETTLEMENTS 9304220144 930422 INTERNATIONAL BRAZILIANS BACK RETAINING PRESIDENCY OVER MONARCHY OR PARLIAMENTARY RULE BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL RIO DE JANEIRO BRAZILIANS VOTED STRONGLY IN FAVOR OF REMAINING A PRESIDENTIAL REPUBLIC RATHER THAN RETURNING TO MONARCHY OR ADOPTING A PARLIAMENTARY SYSTEM OF GOVERNMENT AT FIRST GLANCE THE RESULTS APPEAR TO STRENGTHEN THE HAND OF PRESIDENT ITAMAR FRANCO BUT POLITICAL ANALYSTS SAY THE PLEBISCITE ALSO IS UNLEASHING AN EARLY START TO THE 1994 ELECTION CAMPAIGN ALREADY TWO OF THE LEADING PRESIDENTIAL CONTENDERS SAO PAULO MAYOR PAULO MALUF AND LEFTWING LEADER LUIS INACIO DA SILVA KNOWN AS LULA HAVE BEGUN ATTACKING MR FRANCO FOR INERTIA IN THE FACE OF GRAVE ECONOMIC AND SOCIAL PROBLEMS THEIR CRITICISMS INDICATE THAT MR FRANCO'S POLITICAL SUPPORT IS ERODING HE TOOK OFFICE SEVEN MONTHS AGO AFTER FERNANDO COLLOR DE MELLO WAS OUSTED ON CORRUPTION CHARGES DISPLEASURE WITH THE GOVERNMENT WAS ALSO EVIDENT IN THE HIGH LEVEL OF ABSTENTION IN YESTERDAY'S BALLOTING TO COUNTER HIS CRITICS MR FRANCO HAS CALLED A CABINET MEETING FOR SATURDAY AT WHICH HE IS EXPECTED TO UNVEIL DETAILS OF HIS ECONOMIC PROGRAM TO BRING DOWN INFLATION CURRENTLY RUNNING AT 27 A MONTH KEY MINISTERS HAVE SPENT THE PAST FEW DAYS SEEKING TO REASSURE THE BUSINESS COMMUNITY THAT THERE WILL BE NO SHOCK THERAPY PLANS SHOCK IS A WORD THAT'S NOT PART OF THE GOVERNMENT'S ECONOMIC DICTIONARY PLANNING MINISTER YEDA CRUSIUS SAID TUESDAY INSTEAD MR FRANCO AND FINANCE MINISTER ELISEU RESENDE ARE EXPECTED TO COMBINE SPENDING CUTS AND MEASURES TO STIMULATE CONSTRUCTION AND AGRICULTURE IN AN EFFORT TO RELAUNCH GROWTH WHILE GRADUALLY BRINGING DOWN INFLATION THERE ALSO IS SPECULATION THAT THE GOVERNMENT WILL ANNOUNCE A DEEPENING OF ITS PRIVATIZATION PROGRAM TO INCLUDE PARTS OF MINING GROUP VALE DO RIO DOCE TELEPHONE COMPANY TELEBRAS AND SOME ELECTRIC UTILITIES WHICH WERE PREVIOUSLY CONSIDERED UNTOUCHABLE THE GOVERNMENT IS ALSO SAID TO BE CONSIDERING SENDING A BILL TO CONGRESS ALLOWING 100 FOREIGN OWNERSHIP OF PRIVATIZED CONCERNS INSTEAD OF A MAXIMUM OF 40 THERE IS ALSO THE POSSIBILITY THAT BRAZIL WILL LOP THREE ZEROS OFF ITS CURRENCY THE CRUZEIRO AND GIVE IT A NEW NAME FOR THE FIFTH TIME IN SEVEN YEARS 9304220143 930422 WHO'S NEWS CMS ENHANCEMENTS INC CMS ENHANCEMENTS INC IRVINE CALIF MICHAEL J RUSERT 38 YEARS OLD WAS PROMOTED TO THE POST OF PRESIDENT SUCCEEDING JIM FAROOQUEE MR FAROOQUEE 39 CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE COMPUTER STORAGE PRODUCTS CONCERN HE SAID HE RELINQUISHED HIS DAYTODAY OPERATING DUTIES TO FOCUS ON AN AGGRESSIVE ACQUISITION STRATEGY INVOLVING PURCHASES OF TECHNICAL DISTRIBUTORS MR RUSERT VICE PRESIDENT OF MARKETING FOR THE PAST YEAR ALSO WAS GIVEN THE TITLE OF CHIEF OPERATING OFFICER A NEW POST 9304220142 930422 INTERNATIONAL NEC SEES RETURN TO PROFITABILITY ANALYSTS SKEPTICAL BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO NEC CORP JAPAN'S LARGEST MAKER OF SEMICONDUCTORS AND PERSONAL COMPUTERS FORECAST A RETURN TO PROFIT IN THE FISCAL YEAR ENDING NEXT MARCH 31 THE FORECAST SIGNALED THAT THE ELECTRONICS CONCERN THINKS IT HAS SEEN THE WORST OF ITS CURRENT SLUMP BUT ANALYSTS WERE SKEPTICAL SAYING THE ANNOUNCEMENT WAS BASED ON OVERLY OPTIMISTIC ASSUMPTIONS NEC SAID IT EXPECTS TO POST CONSOLIDATED PRETAX PROFIT OF 10 BILLION YEN 906 MILLION AND UNCONSOLIDATED PRETAX PROFIT OF 50 BILLION YEN IN THE CURRENT FISCAL YEAR THE COMPANY DIDN'T FORECAST SALES BUT SAID IT EXPECTS THEM TO GROW 4 OR 5 FROM THE PREVIOUS YEAR OR TO BETWEEN 376 TRILLION AND 38 TRILLION YEN THE COMPANY HASN'T REPORTED RESULTS FOR THE JUSTENDED FISCAL YEAR BUT ITS MOST RECENT FORECAST SUGGESTS THE YEAR WAS GRIM NEC HAS SAID IT EXPECTS TO POST A 4 DECLINE IN SALES TO 362 TRILLION YEN FROM 377 TRILLION A YEAR AGO A CONSOLIDATED PRETAX LOSS OF 40 BILLION YEN AND A PARENTCOMPANY PRETAX PROFIT OF 18 BILLION YEN FOR THE YEAR ENDING NEXT MARCH AN NEC SPOKESMAN SAID THE COMPANY EXPECTS STRONG CONTRIBUTIONS TO EARNINGS FROM ITS RECENT RESTRUCTURING OF TWO CONSUMERELECTRONICS AND COMPUTERPERIPHERALS SUBSIDIARIES AND GROWING SALES OF COMPUTER MEMORY CHIPS TELECOMMUNICATIONS DEVICES AND PERSONAL COMPUTERS THE COMPANY ALSO INTENDS TO CUT CAPITAL SPENDING 26 IN THE CURRENT YEAR TO 140 BILLION YEN FROM 190 BILLION YEN THIS LATEST CUT IF REALIZED WOULD MEAN THAT NEC'S CAPITAL EXPENDITURES HAVE FALLEN 48 SINCE THEIR PEAK IN 1989 BUT NEC'S ROSY PROJECTIONS FAILED TO IMPRESS ANALYSTS WHO SAID THE COMPANY HAD A HISTORY OF BACKTRACKING ON FORECASTS NEC'S LATEST FORECAST IS UNBELIEVABLE SAID SHIGERU YOSHINAKA OF BARCLAYS DE ZOETE WEDD RESEARCH JAPAN LTD WHO ADDED THAT THE COMPANY WILL BE LUCKY TO SEE 1 SALES GROWTH AND A CONSOLIDATED PRETAX LOSS OF 20 BILLION YEN WHAT'S MORE NEC BASED ITS LATEST FORECAST ON AN EXCHANGE RATE OF 120 YEN TO THE DOLLAR WHICH DOESN'T TAKE INTO ACCOUNT THE YEN'S RECENT SURGE TO ABOUT 110 YEN THE STRONG YEN HURTS EXPORTS 9304220141 930422 CANADA HOLDS BOND AUCTION THE COUPON RATE WAS SET AT 65 THE AVERAGE BID WAS 6682 FOR A PRICE EQUIVALENT OF 99183 PROCEEDS OF THE ISSUE WILL BE APPLIED TOWARD THE REDEMPTION OF C173 BILLION OF GOVERNMENT BONDS MATURING MAY 1 9304220139 930422 WHO'S NEWS NATIONAL MEDIA CORP NATIONAL MEDIA CORP PHILADELPHIA MICHAEL M HAMMOND FORMER PRESIDENT OF REVLON INC'S REVLON NORTH AMERICA UNIT WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MAKER OF INFOMERCIALS HE SUCCEEDS MARK HERSHHORN WHO LEFT TO PURSUE OTHER INTERESTS EFFECTIVE IMMEDIATELY NATIONAL MEDIA SAID MR HAMMOND WILL ALSO TAKE MR HERSHHORN'S SEAT ON THE BOARD 9304220138 930422 LAW HIGH COURT AFFIRMS PRISONERS' RIGHT TO CERTAIN APPEALS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A DEFEAT FOR PROSECUTORS A SHARPLY SPLIT US SUPREME COURT REFUSED TO PLACE NEW LIMITS ON THE TYPE OF CLAIMS STATE PRISONERS MAY MAKE IN APPEALS TO FEDERAL COURTS THE 54 RULING SAID PRISONERS WHO HAVE HAD ADEQUATE OPPORTUNITY TO ARGUE IN STATE COURT THAT THEY WEREN'T SUFFICIENTLY WARNED ABOUT INCRIMINATING THEMSELVES MAY STILL TRY TO GET THEIR CONVICTIONS SET ASIDE BY FEDERAL JUDGES THE RULING STEMS FROM A MICHIGAN CASE BUT IN A WISCONSIN CASE THE HIGH COURT EXTENDED A RECENT LINE OF RULINGS THAT LIMIT STATE PRISONERS' ABILITY TO GET FEDERAL JUDICIAL ORDERS OR WRITS OF HABEAS CORPUS INSTRUCTING AUTHORITIES TO RELEASE CONVICTS BECAUSE OF CONSTITUTIONAL VIOLATIONS ANOTHER FIVEJUSTICE MAJORITY INSTRUCTED FEDERAL JUDGES TO USE A STANDARD LESS FAVORABLE TO DEFENDANTS WHEN DECIDING WHETHER A STATE COURT'S ERROR IS HARMLESS AND THEREFORE DOESN'T REQUIRE A NEW TRIAL MANY CRIMINALLAW EXPERTS EXPECTED THE HIGH COURT TO USE THE CASES TO RESTRICT HABEAS APPEALS BUT IN THE MICHIGAN CASE A MAJORITY OPINION WRITTEN BY JUSTICE DAVID SOUTER REJECTED PROSECUTORS' PUSH TO LIMIT SUCH APPEALS WHEN THEY ARE BASED ON ALLEGED VIOLATIONS OF MIRANDA RIGHTS IN THE 1966 CASE OF MIRANDA VS ARIZONA THE SUPREME COURT SAID THAT BEFORE QUESTIONING SUSPECTS WHO ARE IN CUSTODY AUTHORITIES MUST INFORM THEM OF THEIR RIGHT NOT TO ANSWER AND TO HAVE AN ATTORNEY PRESENT IF POLICE FAIL TO GIVE MIRANDA WARNINGS INCRIMINATING STATEMENTS MUST BE EXCLUDED FROM USE IN TRIALS THE SUPREME COURT IN 1976 SAID THAT WHEN STATE COURTS HAVE GIVEN A FULL AND FAIR HEARING TO A DEFENDANT'S ALLEGATIONS OF AN UNCONSTITUTIONAL SEARCH OR SEIZURE THE SAME CLAIM MAY NOT BE RAISED IN A FEDERAL HABEAS APPEAL YESTERDAY THE HIGH COURT REBUFFED PLEAS BY PROSECUTORS THAT THE FULLANDFAIR RULE BE EXPANDED TO BLOCK MIRANDA CLAIMS JUSTICE SOUTER SAID THAT THE RULE EXCLUDING EVIDENCE FROM UNCONSTITUTIONAL SEARCHES ONLY SERVES TO DETER OFFICIAL OVERREACHING IN CONTRAST HE SAID MIRANDA SAFEGUARDS A FUNDAMENTAL TRIAL RIGHT AGAINST SELFINCRIMINATION AND REFLECTS MANY OF OUR FUNDAMENTAL VALUES AND MOST NOBLE ASPIRATIONS IN THE WISCONSIN CASE THE HIGH COURT SAID THAT FEDERAL JUDGES ENTERTAINING HABEAS APPEALS SHOULD BE MORE READY TO EXCUSE CONSTITUTIONAL ERRORS AT TRIAL AS HARMLESS STRESSING THAT HABEAS APPEALS ARE SPECIAL PROCEDURES THAT GO BEYOND CONVENTIONAL DIRECT REVIEW OF CONVICTIONS CHIEF JUSTICE REHNQUIST WROTE FOR THE MAJORITY THAT APPLICATION OF A LESS ONEROUS HARMLESSERROR STANDARD ON HABEAS PROMOTES THE CONSIDERATIONS UNDERLYING OUR HABEAS JURISPRUDENCE THEY INCLUDE NOT PROLONGING APPEALS INDEFINITELY HE SAID BRECHT VS ABRAHAMSON 9304220137 930422 CORPORATE FOCUS FERRO'S STRATEGY SELL MINOR UNITS BUY CORE WINNERS BERSTICKER IS LONGTIME INSIDER TAKING AN OUTSIDER'S VIEW ON REVAMPING BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL CLEVELAND FERRO CORP FOR YEARS HAD THE PEOPLE AND PLANTS TO HANDLE 2 BILLION IN SALES A YEAR WITH EASE THE PROBLEM WAS IT HAD SALES OF 1 BILLION MANAGEMENT WAS KNOWN FOR ITS INABILITY TO SAY NO TO SPENDING FOR FACILITIES AND BUSINESSES LIKE STEEL MILL PRODUCTS THAT PRODUCED LOUSY RETURNS AND HAD NOTHING TO DO WITH THE COMPANY'S MAIN UNITS NOT SURPRISINGLY ITS REPUTATION FOR FAT DREW THE ATTENTION OF TAKEOVER ARTISTS WHO SAW POTENTIAL IN FERRO'S RELATIVELY MUNDANE CORE BUSINESSES OF COATINGS COLORS CERAMICS CHEMICALS AND PLASTICS FOR PRODUCTS RANGING FROM APPLIANCES TO TOYS ENTER ALBERT C BERSTICKER WALL STREET DIDN'T EXPECT MUCH FROM MR BERSTICKER WHO WAS NAMED CHIEF EXECUTIVE OFFICER IN APRIL 1991 HE JOINED FERRO IN 1958 AS A RESEARCH ENGINEER AND STAYED EVEN SERVING AS PRESIDENT TO ADOLPH POSNICK THE CHIEF EXECUTIVE WHO PREACHED PATIENCE WHILE BUSINESSES LOST MONEY AND COSTS EXPANDED INVESTORS WANTED NEW BLOOD AND MR BERSTICKER KNEW IT MR BERSTICKER STARTED SLASHING THE COMPANY'S BLOATED INFRASTRUCTURE AND JETTISONING UNITS THAT DIDN'T PRODUCE A 25 RETURN ON ASSETS NOW AS OTHER RECESSIONWARY US COMPANIES RETRENCH FERRO IS TARGETING ACQUISITION CANDIDATES ITS APRIL 15 PURCHASE OF IMPERIAL CHEMICAL INDUSTRIES PLC'S POWDER COATINGS DIVISION PROPELLED FERRO TO THE TOP SPOT GLOBALLY IN A MARKET EXPECTED TO GROW 10 TO 15 A YEAR ACQUISITIONS ARE VITAL TO FERRO'S FUTURE GROWTH UNDER MR BERSTICKER'S PLAN SINCE FERRO IS TIED TO SEVERAL CYCLICAL MARKETS IT ALSO NEEDS A STRONG ECONOMIC RECOVERY ESPECIALLY IN EUROPE AND IT MUST BE NIMBLE CREATING NEW PRODUCTS AND MARKETS OBSERVERS SO FAR PRAISE THE EFFORTS IN A REPORT RELEASED LAST WEEK FIRST BOSTON CORP SAID FERRO IS BECOMING AN INNOVATIVE SPECIALTY MATERIALS COMPANY WITH EXCITING GROWTH OPPORTUNITIES THAT COULD RESULT IN MULTIPLE EXPANSION FERRO YESTERDAY CONTINUED TO SURPASS ANALYSTS' ESTIMATES ALBEIT SLIGHTLY EXCLUDING A CHARGE FOR ACCOUNTING ADJUSTMENTS IT POSTED FIRSTQUARTER EARNINGS OF 131 MILLION OR 42 CENTS A SHARE COMPARED WITH 129 MILLION OR 42 CENTS A SHARE IN THE YEARAGO PERIOD WITH THE ACCOUNTING ADJUSTMENT FERRO HAD A LOSS OF 74 MILLION OR 28 CENTS A SHARE MR BERSTICKER'S GOAL IS TO BE NO 1 OR NO 2 IN ALL GLOBAL MARKETS FERRO SERVES ONE WHICH HE SEEMS TO BE ACHIEVING FERRO IS THE WORLD'S BIGGEST PRODUCER OF FRIT WHICH IS USED IN CERMANIC GLAZE IN FLOOR TILES AND PORCELAIN ENAMEL FOR COATING APPLIANCES MANY OF ITS OTHER MARKETS ARE SPLINTERED MAKING IT TOUGH TO RANK COMPETITORS BUT FERRO IS CONSIDERED A LEADER IN FUEL ADDITIVES TO CUT EMISSIONS FROM UNLEADED GASOLINE FLAME RETARDANTS AND COLORS FOR GLASS AND CERAMICS IT IS ALSO PUSHING INTO NEW MARKETS THE COMPANY IS TESTING A PLASTIC TO LINE REFRIGERATORS THAT FITS NEW ENVIRONMENTAL REGULATIONS FIRST BOSTON ESTIMATES THE PRODUCT COULD ADD AS MUCH AS 100 MILLION IN ANNUAL SALES THE EARNINGS POWER IS JUST TREMENDOUS IN THIS COMPANY SAYS JUAN DOMINGUEZ WHO MONITORS THE COMPANY FOR GABELLI & CO A NEW YORK INVESTMENT FIRM THAT HOLDS 529 OF FERRO'S 294 MILLION SHARES OUTSTANDING AFTER NET INCOME DROPPED 75 TO 48 MILLION IN 1991 WHICH INCLUDED A 317 MILLION RESTRUCTURING CHARGE MR BERSTICKER'S PROGRAM BOOSTED NET TO 588 MILLION IN 1992 BUT A 1993 EARNINGS ENCORE MAY PROVE TOUGH LARGELY BECAUSE OF THE DEEPENING RECESSION IN EUROPE WHERE FERRO DERIVED 37 OF ITS 11 BILLION IN REVENUE AND 46 OF ITS PROFIT LAST YEAR MOREOVER ALL OF THE OBVIOUS COST CUTTING MOVES HAVE BEEN MADE AND OUTSIDERS WONDER WHETHER THE COMPANY WILL REMAIN INDEPENDENT OR BECOME ANOTHER TAKEOVER CANDIDATE THE JURY IN MY MIND IS OUT ON WHETHER THE COMPANY WILL SURVIVE AS AN INDEPENDENT CONCERN SAYS WARREN ISABELLE WHO FOLLOWS THE STOCK FOR PIONEERING MANAGEMENT CORP IN BOSTON WHICH HOLDS 22 OF FERRO'S COMMON STOCK SAYS MR BERSTICKER YOU'RE NEVER IMMUNE TO SOMEBODY TAKING YOU OVER BUT COMPARED WITH TWO OR THREE YEARS AGO FERRO WON'T COME CHEAP HE ADDS ADJUSTED FOR TWO STOCK SPLITS THE PRICE HAS CLIMBED TO 31 WHERE IT WAS TRADING LATE YESTERDAY ON THE NEW YORK STOCK EXCHANGE FROM 12 A SHARE IN DECEMBER 1990 WHEN MR BERSTICKER JOINED FERRO IN THE LATE 1950S IT HAD JUST OVER 56 MILLION IN SALES ESSENTIALLY FROM THE SAME BUSINESSES IT HAS TODAY OVER THE YEARS MANAGEMENT ADDED SEVERAL TINY UNRELATED BUSINESSES INCLUDING UNITS THAT MAKE ROAD MARKERS GRINDING WHEELS GLASS BEADS AND PRODUCTS FOR FOUNDRIES AND MR POSNICK SAT BACK AND WAITED FOR THEM TO CHURN OUT BIG PROFITS THAT NEVER CAME AS COSTS CLIMBED HIGHER THIS WAS THE EMBODIMENT OF THE OLD GUARD OF AMERICAN COMPANIES SAYS MR ISABELLE THE STATUS QUO IN OTHER WORDS WAS HELD IN HIGH REGARD MR BERSTICKER A 58YEAROLD NONONSENSE MANAGER WHO THRIVES ON NUTSANDBOLTS ISSUES WAS PART OF THAT CULTURE AND MANAGEMENT TEAM BUT A COMPANY MAN HE SPENT HIS TIME IN MR POSNICK'S SHADOW AND WAS UNABLE TO PUSH THROUGH MAJOR CHANGES YET WHEN HE GOT THE CHANCE TO RUN THE COMPANY MR BERSTICKER EXPLAINED TO THE BOARD THAT MAJOR CHANGES HAD TO BE MADE TO PUT FERRO IN THE 20TH CENTURY THE BOARD INCLUDING MR POSNICK AGREED MR BERSTICKER THEN ATTACKED FERRO'S LARGESS LIKE AN OUTSIDER AXING UNITS WITH SALES OF 115 MILLION A YEAR THAT DIDN'T MEET PERFORMANCE GOALS OR WEREN'T CORE BUSINESSES AMONG THEM STEEL MILL PRODUCTS AND AEROSPACE COMPOSITES UNITS EMPLOYMENT FELL 21 TO 6500 FROM 8200 IN 1990 HELPING PARE SELLING ADMINISTRATIVE AND GENERAL EXPENSES BY 8 MR BERSTICKER SAYS FERRO IS ABOUT TWOTHIRDS THROUGH A PROFIT ENHANCEMENT PROGRAM AND HAS MORE UNITS TO UNLOAD AND COSTS TO CUT IT IS SLASHING IN HALF THE NUMBER OF PLASTICS PLANTS TO 15 STILL CUTS ALONE WON'T PRODUCE FUTURE FAT EARNINGS GAINS ASKS MR ISABELLE WHERE DO YOU GO FROM THERE MR BERSTICKER CONTENDS ACQUISITIONS AND NEW PRODUCTS SUCH AS A PLASTIC FOR INTRAVENOUS BAGS THAT FERRO CLAIMS WON'T MIGRATE INTO THE SOLUTION LIKE OTHER PLASTICS WILL PICK UP THE SLACK THE ACQUISITION OF ICI'S POWDER COATINGS BUSINESS ALONE WILL DOUBLE TO 200 MILLION FERRO'S SALES IN POWDER COATINGS A BUSINESS WITH BIG POTENTIAL BECAUSE IT INVOLVES FEWER ENVIRONMENTAL HAZARDS THAN LIQUIDBASED PAINTS THE MARGINS IN THAT BUSINESS HAVE BEEN SLIM BECAUSE OF COMPETITION AND CAPACITY BOTH OF WHICH COULD BE CUT WITH THE ICI PURCHASE OTHER ACQUISITIONS TOO WILL PLAY A BIG ROLE IN THE COMPANY'S GROWTH BUT ONLY IF THEY HAVE STRONG MANAGEMENT TEAMS ARE NOT SIGNIFICANTLY DILUTIVE AND ARE WITHIN FERRO'S CORE BUSINESS WE WANT TO BE VERY CAREFUL THAT THIS DOESN'T BECOME ADVENTURESOME SAYS MR BERSTICKER 9304220136 930422 LEISURE & ARTS FILM A YOUNG WOMAN'S QUIXOTIC JOURNEY BY JULIE SALAMON ZHANG YIMOU IS THE BESTKNOWN CHINESE FILMMAKER IN THE WEST BUT HIS MOST INTERNATIONALLY ACCLAIMED PICTURES JU DOU AND RAISE THE RED LANTERN BOTH RELEASED AFTER THE 1989 CRACKDOWN ON CHINA'S PRODEMOCRACY MOVEMENT WERE BANNED IN CHINA THOUGH SET IN THE PRECOMMUNIST CHINA OF THE 1920S THE MOVIES WERE CONSIDERED A BAD INFLUENCE TOO CONTROVERSIAL TOO PERSUASIVELY ANTIAUTHORITARIAN THINGS CHANGE LATE LAST YEAR THE BAN WAS LIFTED AND JU DOU AND RAISE THE RED LANTERN OPENED TO ENTHUSIASTIC CHINESE AUDIENCES NOW MR ZHANG YESTERDAY'S OUTCAST IS CREDITED WITH REVIVING MOVIEGOING IN CHINA WHERE PEOPLE HAD QUICKLY TIRED OF THE POLITICALLY CORRECT FILMS INSPIRED BY TIANANMEN SQUARE HIS LATEST PICTURE THE STORY OF QIU JU ACTUALLY OPENED AT HOME BEFORE IT OPENED IN THE US SOME PEOPLE MIGHT ARGUE THAT ACCEPTANCE HAS DULLED MR ZHANG'S EDGE THOUGH QIU JU MOCKS THE SYSTEM IT'S A GENTLER PICTURE THAN THE FILMMAKER'S PREVIOUS WORKS A COMEDY NOT A TRAGEDY I THINK HOWEVER THAT IN ITS MODEST WAY QIU JU IS A SPECTACULAR ACCOMPLISHMENT IT'S CONSTRUCTED LIKE AN EXQUISITE SHORT STORY A FABLE THAT MANAGES TO ADDRESS THE BIGGEST QUESTIONS AND TO ANSWER THEMIN THE SPACE AN EXPANSIVE NOVELIST MIGHT USE FOR A PROLOGUE IT'S ALSO FUNNY IN FACT QIU JU WAS ADAPTED BY SCREENWRITER LIU HENG FROM A RECENT NOVELLA BY CHEN YUAN BIN CALLED THE WAN FAMILY'S LAWSUIT NOT MUCH HAPPENS A PEASANT WANTS TO BUILD A SHED TO DRY CHILI PEPPERS THE VILLAGE CHIEF WON'T LET HIM TELLS HIM IT'S AGAINST THE LAW IN THE ARGUMENT THAT FOLLOWS THE PEASANT TAUNTS THE CHIEF FOR HAVING DAUGHTERS NO SONS THIS IS UNDERSTOOD TO BE AN INSULT THE CHIEF REPLIES BY KICKING THE PEASANT IN THE GROIN ALL THIS HAS TAKEN PLACE BEFORE THE MOVIE BEGINS THE ACTION SIMPLY FOLLOWS THE PEASANT'S PREGNANT WIFE QIU JU AS SHE TRIES TO EXTRACT AN APOLOGY FROM THE CHIEF WHEN HE REFUSES SHE TAKES HER CASE TO THE LOCAL MAGISTRATE WHO POINTS HER THROUGH THE LOOKING GLASS INTO THE BUREAUCRATIC WONDERLAND ACTUALLY HER TRAVELS AREN'T NEARLY AS EXOTIC AS ALICE'S THE BEAUTY OF MR ZHANG'S PICTURE IS THE BANALITY OF QIU JU'S QUIXOTIC JOURNEY EVERYONE IS VERY HELPFUL PERFECTLY HAPPY TO MOVE HER TO THE NEXT LEVEL OF APPEAL WITHOUT EVER STOPPING TO THINK THAT THE SYSTEM CAN'T GIVE HER WHAT SHE WANTS AN APOLOGY WHAT SHE WANTS IS PERSONAL WHAT THE SYSTEM OFFERS IS NOT YET IT TAKES A LONG JOURNEY FOR HER TO REALIZE THAT MANY OF THE PEASANT FACES IN THIS MOVIE SEEM INCREDIBLY AUTHENTIC BECAUSE THEY ARE HOWEVER FOR HIS MAIN CHARACTERS MR ZHANG USED PROFESSIONAL ACTORS ESPECIALLY THE BEAUTIFUL GONG LI WHO HAS BECOME A STAR ACTING IN MR ZHANG'S MOVIES AND WHO IS NOW HIS WIFE AS USUAL SHE MANAGES TO BE REVEALING AND MYSTERIOUS ALL AT ONCE IT'S EASY TO SEE MR ZHANG'S SIGNATURE ON THIS MOVIE EVEN THOUGH IT'S LIGHTER THAN HIS PREVIOUS WORKS HE HAS A RECOGNIZABLE SEDUCTIVE STYLE THAT CONTEMPLATES AND HEIGHTENS THE PAGEANTRY OF EVERYDAY LIFE HE SEEMS MESMERIZED BY MACHINERY AND FILMS IT IN A WAY THAT MAKES HIS OBSESSION UNDERSTANDABLE CORN IS GROUND RED CHILES ARE PULVERIZED PRODUCING FANTASTIC BURSTS OF COLOR AGAINST THE DRAB WINTRY COUNTRYSIDE THAT SEEMS TO BE MR ZHANG'S CHINACONFORMITY INTERRUPTED BY HOT FLASHES OF PASSION MAP OF THE HUMAN HEART LEAVES YOU FEELING DRAINED THE WAY SOME DREAMS DO THERE'S A MYTHIC INTENSITY TO THIS WIDERANGING STORY OF DOOMED ROMANCE SET IN A DISTANT TIME AND PLACE IT'S ABOUT A YOUNG ESKIMO BOY WHO'S HALF WHITE HE'S TAKEN FROM HIS ARCTIC HOME BY A CANADIAN EXPLORER WHO DISCOVERS THE BOY HAS TUBERCULOSIS THE BOY A MISCHIEVOUS EXPLORER HIMSELF ISN'T ALL THAT HAPPY IN THE HOSPITAL RUN BY NUNS UNTIL HE MEETS HIS KINDRED SPIRIT A RANGY TROUBLEMAKER A GIRL WHO'S ALSO HALF WHITE AND HALF NATIVE AMERICAN THAT'S IN 1931 AND THE PICTURE FOLLOWS THEM THROUGH SEPARATION REUNION AND SEPARATION OVER A PERIOD OF 30 YEARS THESE DETAILS DON'T EXPLAIN THE PICTURE'S SPIRIT THE WAY THE NEW ZEALAND DIRECTOR VINCENT WARD HAS CONVINCINGLY TURNED THIS EXPANSIVE STORY INTO RECOGNIZABLE MEMORY THROUGH CALCULATED IMAGERY A PERVASIVE YET UNOBVIOUS SENSE OF GHOSTLINESS AND SOUND HE LETS YOU WATCH THE CHARACTERS YET ALSO FEEL WHAT IT'S LIKE TO BE THEM THIS MAY SOUND A LITTLE MYSTICAL AND IT IS THE WAY MOVIES CAN BE YET THE CHARACTERS NEVER SEEM LIKE PROPS FOR THE CAMERA THE PARTS ARE STRONGLY WRITTEN BY LOUIS NOWRA FROM A STORY BY MR WARD AND INCREDIBLY WELL ACTED IT'S RARE TO SEE A FILM IN WHICH CHARACTERS APPEAR AS CHILDREN AND ADULTS AND ARE CONVINCING AS BOTH THIS IS THAT RARE FILM JASON SCOTT LEE AND ANNE PARILLAUD ARE SUPERB AS THE GROWN AVIK AND ALBERTINE DESPITE THE NOTALWAYSCONVINCING DUBBED VOICE THAT SPEAKS ENGLISH FOR MS PARILLAUD ASTONISHING HOWEVER ARE ROBERT JOAMIE AND ANNIE GALIPEAU THE SPIRITED YOUNG ACTORS BOTH PERFORMING FOR THE FIRST TIME WHO PLAY THE LOVERS AS CHILDREN VIDEO TIP MR WARD IS AN ORIGINAL THINKER IF YOU DON'T BELIEVE ME JUST LOOK AT THE NAVIGATOR A MEDIEVAL ODYSSEY A FANTASTIC VOYAGE FROM THE ENGLISH VILLAGE OF CUMBRIA IN 1348 IN THE MIDDLE OF THE BLACK PLAGUE TO CONTEMPORARY NEW ZEALAND 9304220135 930422 LETTERS TO THE EDITOR SALVADOR AND THE BONNER MYSTERY AM ROSENTHAL'S 1200WORD LETTER TO THE EDITOR OF APRIL 6 DIDN'T DO MUCH TO CLARIFY THE QUESTION OF WHY THE NEW YORK TIMES RECALLED RAYMOND BONNER FROM EL SALVADOR IN 1982 AFTER ONLY A 10MONTH TOUR OF DUTY AFTER DENYING THAT THIS HAD ANYTHING TO DO WITH PRESSURE FROM THE GOVERNMENT OR ANY OTHER CRITICS OF MR BONNER'S REPORTING HE TELLS US THAT AFTER SOMETIME THE FEELING BEGAN TO GROW AMONG THE EDITORS WHO HANDLED HIS COPY DAILY THAT IN A SENSE WE WERE EXPLOITING MR BONNER DEMANDING A GREAT DEAL WITHOUT GIVING HIM THE JOURNALISTIC TRAINING MOST OTHER TIMES REPORTERS HAD ACQUIRED ON OR OFF THE TIMES BEFORE THEY WENT INTO A FOREIGN ASSIGNMENT FOR US SO WE ASKED MR BONNER TO RETURN NOT TO PUNISH HIM BUT TO EQUIP HIM FURTHER FOR AN ASSIGNMENT ANYPLACE MR ROSENTHAL DOESN'T SAY WHAT IT WAS IN MR BONNER'S COPY THAT LED HIS EDITORS TO THE CONCLUSION THAT HE NEEDED SOME JOURNALISTIC TRAINING BUT HE DENIES THAT MR BONNER'S STORY ON THE EL MOZOTE MASSACRE WAS INVOLVED MR BONNER'S STORY ABOUT THE EL MOZOTE MASSACRE AROUSED CONSIDERABLE CRITICISM AND CONTRARY TO RECENT CLAIMS ON 60 MINUTES AND ELSEWHERE ITS CRITICS HAVE NOT BEEN PROVED WRONG MOST CRITICS DID NOT DENY THAT THERE MAY HAVE BEEN A MASSACRE THEY FAULTED MR BONNER FOR ACCEPTING WITHOUT QUESTION THE CLAIMS OF THE GUERRILLAS ABOUT THE NUMBER OF VICTIMS SAYING THEY WERE TABULATIONS MADE BY THE PEASANTS HE REPORTED THAT 733 OR 926 HAD BEEN MASSACRED IN THE SIX HAMLETS IN THE AREA 482 OF THEM IN EL MOZOTE ALONE THE RECENT UN TRUTH COMMISSION REPORT DOES NOT VALIDATE THESE NUMBERS WHICH WERE LARGER THAN THE REPORTED POPULATION OF THE AREA EL MOZOTE MAY NOT HAVE BEEN INVOLVED IN MR BONNER'S RECALL BUT A STORY HE WROTE ALLEGING THAT US MILITARY ADVISERS HAD ATTENDED A TORTURE TRAINING SESSION GIVEN BY THE SALVADORAN MILITARY SURELY WAS IT ALLEGED THAT US GREEN BERETS WATCHED AS TWO TEENAGE SALVADORANS WERE TORTURED TO DEATH THE PENTAGON SHOWED THAT THE STORY WAS FULL OF HOLES MR BONNER HAD RELIED ON A SINGLE UNCORROBORATED SOURCE WHOSE CREDIBILITY WAS NEAR ZERO THIS WAS A HUGE EMBARRASSMENT TO THE TIMES MR ROSENTHAL ADMITTED THAT IT SHOULD NOT HAVE BEEN PUBLISHED BUT HE ACCUSED ACCURACY IN MEDIA OF CONDUCTING A PROPAGANDA CAMPAIGN IN PUBLICIZING IT IN HIS BOOK FIT TO PRINT AM ROSENTHAL AND HIS TIMES JOSEPH C GOULDEN DESCRIBES IN DETAIL THE EVENTS THAT LED MR ROSENTHAL HIMSELF TO LOSE TRUST IN MR BONNER'S ABILITY TO COVER EL SALVADOR OBJECTIVELY THESE INCLUDED MR BONNER'S EMBARRASSING TORTURE STORY HIS DOWNPLAYING OF COMMUNISTBLOC AID TO THE SALVADORAN REBELS HIS FAILURE TO RECOGNIZE THAT THE MARCH 1982 ELECTIONS WERE A MAJOR DEFEAT FOR THE REBELS AND HIS PERSISTENT EFFORTS TO DISCREDIT THOSE ELECTIONS MR GOULDEN SAYS THAT MR ROSENTHAL TOLD FOREIGN EDITOR WARREN HOGE I DON'T WANT TO SEE ANY MORE OF BONNER'S PIECES ON ELECTORAL FRAUD MR ROSENTHAL IS NO DOUBT SINCERE IN DENYING THAT HIS HANDLING OF MR BONNER WAS THE RESULT OF PRESSURE BUT THE CRITICISM OF MR BONNER HELPED OPEN HIS EYES TO A SITUATION THAT CRIED OUT FOR CORRECTION MR ROSENTHAL IS FAR TOO GOOD A JOURNALIST NOT TO HAVE RECOGNIZED THAT WHAT WAS COMING OUT OF EL SALVADOR WAS ADVOCACY JOURNALISM ON BEHALF OF THE COMMUNISTBACKED REBELS EITHER THE TIMES DIDN'T WANT TO ADMIT THAT ITS REPORTING HAD BEEN BADLY FLAWED OR IT DIDN'T WANT TO INVITE BRICKBATS FROM THE LEFT BY REVEALING THE REAL REASON IT HAD RECALLED RAY BONNER IT IS THIS LACK OF CANDOR THAT GAVE RISE TO THE BELIEF THAT THE TIMES HAD BOWED TO PRESSURE A BELIEF THAT MR BONNER HELPED SPREAD SHORTLY AFTER MR BONNER CAME HOME I RECEIVED A LETTER INFORMING ME THAT ONE OF HIS FRIENDS IN WASHINGTON HAD SAID RAY IS MAD AS HELL HE TOLD ME THAT THE REAGAN ADMINISTRATION AND THAT SON OF A BITCH REED IRVINE AND ACCURACY IN MEDIA GANGED UP ON HIM AND PRESSURED THE TIMES INTO CHANGING HIS ASSIGNMENT HE IS THINKING ABOUT HOLDING A PRESS CONFERENCE THIS WEEK I ENJOYED AND WAS TAKEN BY MR ROSENTHAL'S LETTER RARELY DOES AN ALIEN RAIN ON THE JOURNAL'S TURF BUT I MUST SAY THIS TO THE EDITOR WHO WROTE ON CREDULITY MARCH 19 YOU DID THE RIGHT THING WE WILL ALWAYS REMEMBER THAT IT WAS YOUR EDITORIAL THAT MADE MR ROSENTHAL COME DOWN FROM THE MOUNTAIN TO SET THE RECORD STRAIGHT THAT'S WHAT JOURNALISM IS ALL ABOUT 9304220134 930422 LEISURE & ARTS BOOKSHELF THE MISERY OF OUR CITIES BY MELANIE KIRKPATRICK FOR MYRON MAGNET WHOSE FIRST BOOK WAS DICKENS AND THE SOCIAL ORDER IT'S A SMALL STEP FROM DICKENSIAN LONDON TO THE MISERY OF MODERN AMERICAN CITIES THE SUBJECT OF HIS SECOND BOOK IN THE DREAM AND THE NIGHTMARE THE SIXTIES' LEGACY TO THE UNDERCLASS MORROW 256 PAGES 20 HE EXAMINES HOW OUR CITIES CAME TO BE POPULATED BY MALEVOLENT FAGINS AND PITIFUL LITTLE NELLS WHY THE RICHEST SOCIETY THE WORLD HAS EVER KNOWN IS PLAGUED BY SEEMINGLY INTRACTABLE CRIME POVERTY AND RACIAL HATREDS MANY WRITERS HAVE ADDRESSED THIS TOPIC IN RECENT YEARS BUT FEW HAVE DONE SO WITH MORE WISDOM OR MORE PASSION THAN MR MAGNET A MEMBER OF THE FORTUNE BOARD OF EDITORS AND A MANHATTAN INSTITUTE FELLOW THE DREAM AND THE NIGHTMARE IS AN ABSORBING TALE OF HOW THE HONORABLE INTENTIONS OF LIBERAL DOGOODERS PRODUCED TRAGIC CONSEQUENCES IT IS ALSO AT HEART A PROFOUNDLY OPTIMISTIC BOOK FOR IT HOLDS OUT THE HOPE THAT WE CAN REVERSE COURSE THE FIRST STEP TOWARD A SOLUTION AFTER ALL IS FIGURING OUT WHAT WENT WRONG WHAT WENT WRONG ACCORDING TO MR MAGNET WAS AMERICAN CULTURE THE CULTURAL REVOLUTION OF THE '60S HE SAYS GREW OUT OF TWO HONORABLE AIMS THE CIVIL RIGHTS MOVEMENT AND THE WAR ON POVERTY BUT INSTEAD OF ENDING POVERTY THE CULTURAL REVOLUTION EXTENDED IT BY FOSTERING THE DESTRUCTION OF THE VALUES THAT TRADITIONALLY HELP PEOPLE RISE OUT OF POVERTY DILIGENCE THRIFT DEFERRAL OF GRATIFICATION WHAT MESSAGES ARE THE WORKING POOR TO GET HE ASKS IF WHITE OR BLACK THEY ARE DESCRIBED AS SLOGGERS GOING NOWHERE THAT THEY ARE CHUMPS AND JERKS THAT THEIR ACHIEVEMENT ISN'T TO BE VALUED AND INDEED IS SNEERED AT AND DISPRAISED HIS CENTRAL POINT IS THAT IT IS THE POOR WHO HAVE SUFFERED MOST FROM THE CULTURAL REVOLUTION WHILE THE HAVES GENERALLY POSSESS THE FINANCIAL AND INNER RESOURCES TO SURVIVE AND EVEN PROSPER IN THE NEW CULTURE THE HAVENOTS DO NOT THE NEW ETHOS WHICH STRESSES PERSONAL LIBERATION OVER THE TRADITIONAL DISCIPLINES OF FAMILY WORK AND CITIZENSHIP HAS HAD A CATASTROPHIC EFFECT ON THE HAVENOTS AMONG THE POOR THE SEXUAL REVOLUTION PRODUCED TEEN MOTHERS AND ABSENT FATHERS THE DRUG CULTURE CREATED ADDICTS AND CRIMINALS OPEN EDUCATION CREATED ILLITERATES WORST OF ALL THE NEW CULTURE TURNED THE POOR INTO VICTIMS ROBBING THEM OF RESPONSIBILITY FOR THEIR FATE IF SOCIETY WAS THE PROBLEM THE POOR MIGHT REASONABLY ASK THEMSELVES WHAT WAS THE USE IN STRIVING FOR A BETTER LIFE THE POWER OF CULTURE MR MAGNET MAINTAINS HAS BEEN VASTLY UNDERESTIMATED BY BOTH LIBERALS AND CONSERVATIVES WHO FOCUS ON ECONOMIC SOLUTIONS LIBERALS BLAME POVERTY ON SOCIETY WHICH THEY SEE AS HAVING FAILED THE POOR AND BELIEVE THAT ENLIGHTENED SOCIAL POLICY AND ECONOMIC SUPPORT IS THE WAY TO HELP CONSERVATIVES ESPECIALLY LIBERTARIANS TEND TO BLAME WARPED ECONOMIC INCENTIVES THAT MAKE WELFARE OR CRIME ATTRACTIVE ALTERNATIVES TO WORK MR MAGNET DOESN'T DISMISS THESE INCENTIVES TO FAIL AS CHARLES MURRAY CALLS THEM BUT HE SAYS THEY AREN'T ADEQUATE TO EXPLAIN WHY CRIME WELFARE DEPENDENCY DRUG ABUSE ILLEGITIMACY SCHOOLLEAVING AND NONPARTICIPATION IN THE WORKFORCE ALL TOOK OFF IN THE LATE '60S ONLY THE FORCE OF CULTURE CAN EXPLAIN ONE OF THE MOST DRAMATIC SINGULARITIES OF THE UNDERCLASS PROBLEM THE FACT THAT SUDDENLY ALL THE INDICATORS OF SOCIAL PATHOLOGY AMONG THE POOREST POOR WENT WRONG TOGETHER THE SPIRIT OF THE AGE HE SAYS COMMUNICATED TO THE POOR EXACTLY THE WRONG MESSAGE AND THE MOST SELFDESTRUCTIVE VALUES MUCH OF THE DREAM AND THE NIGHTMARE IS DEVOTED TO TRACING THE PATTERN OF DISINTEGRATION ACROSS OUR CENTRAL SOCIAL INSTITUTIONS THERE ARE CHAPTERS ON HOMELESSNESS CRIME WELFARE EDUCATION AND THE JUSTICE SYSTEM IT IS A SAD LITANY FILLED WITH DEPRESSING STATISTICS AND CHILLING ANECDOTES ALONG THE WAY HE OFFERS MANY SPECIFIC PROPOSALS FOR REFORM THE WELFARE SYSTEM FOR INSTANCE OUGHT TO DISTINGUISH BETWEEN UNWED MOTHERS AND MOTHERS WHO ARE WIDOWED OR DIVORCED THERE IS A WHOLESOME DISTINCTION HE SAYS BETWEEN WOMEN WHO HAVE MADE A LEGAL COMMITMENT TO THE IDEA OF FAMILY AND WOMEN USUALLY TEENAGERS WHO HAVE EMBARKED ON MOTHERHOOD WITH LITTLE SENSE OF RESPONSIBILITY FOR THE JUSTICE SYSTEM HE CALLS FOR A REINSTATEMENT OF THE LINK BETWEEN CRIME AND PUNISHMENT HE IS PARTICULARLY CRITICAL OF OUR LENIENT JUVENILE JUSTICE SYSTEM WHICH TREATS YOUNG DELINQUENTS AS ADMIRABLE REBELS AND HE'D LIKE TO SEE LEGISLATION STATING THAT OUR LAWS AND OUR GOVERNMENT ARE COLORBLIND AND DO NOT PERMIT DISCRIMINATION BY RACE THESE ARE ALL CONSTRUCTIVE SUGGESTIONS BUT THEY WILL DO LITTLE GOOD IF MR MAGNET'S CENTRAL THEME ABOUT THE POWER OF CULTURE IS NOT ACCEPTED THE PRIMARY ANSWER TO WHAT IS TO BE DONE HE WRITES IS TO STOP DOING WHAT MAKES THE PROBLEM WORSE STOP THE CURRENT WELFARE SYSTEM STOP QUOTABASED AFFIRMATIVE ACTION STOP TREATING CRIMINALS AS JUSTIFIED REBELS STOP LETTING BUMS EXPROPRIATE PUBLIC SPACES OR WRONGDOERS LIVE IN PUBLIC HOUSING AT PUBLIC EXPENSE STOP AFROCENTRIC EDUCATION IN THE SCHOOLS THE INSTITUTIONAL STRUCTURE FOR ESCAPING POVERTY IS ALREADY IN PLACE AS MANY HARDWORKING THRIFTY IMMIGRANTS PROVE IN A SINGLE GENERATION THE PROBLEM IS ONE OF SPIRITUAL POVERTY THE POOR LACK THE INNER RESOURCES TO EMBRACE THE OPPORTUNITIES THAT ARE AT THEIR DOOR THE BITTER LESSON OF THE PAST 30 YEARS IS THAT MOST OF WHAT WE HAVE DONE TO HELP THE POOR HOWEVER GENEROUS OUR MOTIVES HAS HAD THE OPPOSITE EFFECT THE REQUIRED SOLUTION IS FOR THE POOR TO TAKE RESPONSIBILITY FOR THEIR OWN FATES 9304220133 930422 GOODYEAR TIRE CANADIAN UNIT TORONTO THE CANADIAN SUBSIDIARY OF GOODYEAR TIRE & RUBBER CO SAID ITS MINORITY HOLDERS VOTED TO ACCEPT THE PARENT COMPANY'S SWEETENED PROPOSAL TO ACQUIRE THEIR SHARES FOR ABOUT 196 MILLION CANADIAN DOLLARS US149 MILLION THE PROPOSAL WILL PAY C65 A SHARE TO MINORITY HOLDERS OF GOODYEAR CANADA INC WHO LAST YEAR VETOED A C48ASHARE PLAN GOODYEAR TIRE AKRON OHIO ALREADY OWNED ALL BUT 11 OR 288000 SHARES OF THE TORONTOBASED SUBSIDIARY 9304220132 930422 WHO'S NEWS CHARTER ONE FINANCIAL INC CHARTER ONE FINANCIAL INC CLEVELAND DENISE MARIE FUGO 41 YEARS OLD PRESIDENT OF CLEVELANDBASED CITY LIFE INC WHICH OPERATES RESTAURANTS AND A CATERING SERVICE IN CLEVELAND WAS NAMED A DIRECTOR OF THIS BANK HOLDING COMPANY AND ITS CHARTER ONE BANK UNIT THE ACTION INCREASES THE SIZE OF THE HOLDING COMPANY'S BOARD TO 12 MEMBERS FROM 11 MEMBERS 9304220131 930422 FINANCING BUSINESS AUTOMATIC DATA PROCESSING INC AUTOMATIC DATA PROCESSING INC ROSELAND NJ STANDARD & POOR'S CORP RAISED ITS RATING ON THIS COMPUTER SERVICES COMPANY'S SUBORDINATED DEBT TO DOUBLEA FROM DOUBLEAMINUS THE IMPLIED SENIOR RATING IS DOUBLEAPLUS ABOUT 285 MILLION OF DEBT IS AFFECTED S&P SAID THE UPGRADE ACKNOWLEDGES THE SUCCESSFUL INTEGRATION OF THREE RECENTLY ACQUIRED BUSINESSES WHICH ENHANCES AN ALREADY STRONG BUSINESS POSITION AND HELPS LEVERAGE ADP'S EXISTING DATA PROCESSING CAPABILITIES IT ALSO CITED AUTOMATIC DATA'S CONSISTENT AND VERY STRONG EARNINGS AND CASH FLOW 9304220130 930422 HIGH COURT RULING ON TRAINCAR CRASHES IS LIMITED DEFEAT FOR RAILROAD INDUSTRY BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT SAID FEDERAL REGULATIONS PRECLUDE MANY BUT NOT ALL NEGLIGENCE LAWSUITS FILED ON BEHALF OF VICTIMS OF COLLISIONS BETWEEN TRAINS AND AUTOMOBILES THE 72 RULING WAS A LIMITED DEFEAT FOR THE RAILROAD INDUSTRY WHICH HAD SOUGHT COMPLETE PROTECTION AGAINST CRASH VICTIMS' LAW SUITS THE COURT SAID SUITS ALLEGING THAT TRAINS WERE TRAVELING TOO FAST ARE PRECLUDED BY FEDERAL SPEED REGULATIONS BUT STATELAW CLAIMS ABOUT NEGLIGENT MAINTENANCE OF SAFETY DEVICES ARE PERMISSIBLE IF FEDERAL FUNDS HAVEN'T BEEN USED TO IMPROVE SAFETY AT THE CROSSING IN QUESTION USE OF FEDERAL FUNDS REQUIRES COMPLIANCE WITH FEDERAL SAFETY STANDARDS AND PRECLUDES IMPOSITION OF TOUGHER STATE STANDARDS THE MAJORITY SAID FEDERAL FUNDS HAVE BEEN USED TO IMPROVE MANY BUT NOT MOST OF THE NATION'S THOUSANDS OF RAILWAY CROSSINGS ACCORDING TO LAWYERS FOR THE INDUSTRY RAILWAYCROSSING ACCIDENTS ARE QUITE COMMON IN 1990 THE MOST RECENT YEAR FOR WHICH STATISTICS ARE AVAILABLE 5022 ACCIDENTS AT CROSSINGS RESULTED IN 568 DEATHS AND 2186 INJURIES ACCORDING TO THE DEPARTMENT OF TRANSPORTATION SUCH ACCIDENTS FREQUENTLY LEAD TO SUITS AGAINST RAILROAD COMPANIES THE RAILROADS HAD ARGUED IN LOWER COURTS WITH MIXED SUCCESS THAT THE COMPLICATED WEB OF FEDERAL LAWS AND REGULATIONS GOVERNING RAIL TRANSPORTATION SUPERSEDE STATE LAWS UNDER WHICH ACCIDENT VICTIMS OR THEIR FAMILIES FILE SUITS BUSINESS DEFENDANTS OFTEN TRY TO FEND OFF CONSUMER LAWSUITS OR STATE ENFORCEMENT ACTIONS BY CONTENDING THAT FEDERAL LAW PREEMPTS STATE STATUTES OR JUDGEMADE LAW WHERE THERE ARE DIRECT CONFLICTS OR WHERE FEDERAL STANDARDS EXPLICITLY SAY THAT STATE LAWS ARE SUPERSEDED FEDERAL LAW PREVAILS YESTERDAY'S RULING INVOLVED A SUIT AGAINST A UNIT OF CSX CORP THAT AROSE FROM A FATAL 1988 ACCIDENT AT A GEORGIA RAILROAD CROSSING THE WIFE OF THE MOTORIST VICTIM ACCUSED THE UNIT CSX TRANSPORTATION INC OF OPERATING A TRAIN AT EXCESSIVE SPEED AND FAILING TO MAINTAIN ADEQUATE WARNING DEVICES A FEDERAL TRIAL JUDGE DISMISSED BOTH CLAIMS CONCLUDING THAT THEY WERE PRECLUDED BY FEDERAL REGULATIONS A FEDERAL APPEALS COURT IN ATLANTA REINSTATED THE WARNING CLAIM AND THE SUPREME COURT AFFIRMED THAT RULING A TRIAL WILL NOW BE HELD ON THAT ISSUE EXAMINING THE PARTICULAR CIRCUMSTANCES AT THE CARTERSVILLE GA ACCIDENT SITE THE HIGH COURT MAJORITY SAID THAT FEDERAL FUNDS HADN'T BEEN USED IN MAKING IMPROVEMENTS THERE CARTER PHILLIPS CSX'S LAWYER SAID THE DECISION WILL LEAD THE RAILROAD INDUSTRY TO CONSIDER WHETHER IT SHOULD SEEK IMPROVEMENTS AT CROSSINGS THAT HAVEN'T BEEN SO UPGRADED WITH FEDERAL FUNDS BUT HE STRESSED THAT THE PORTION OF THE RULING ON SPEEDRELATED CLAIMS IS A VERY POSITIVE DEVELOPMENT FOR THE RAILROAD BUSINESS JUSTICE BYRON WHITE WROTE THE MAJORITY OPINION HE WAS JOINED BY CHIEF JUSTICE WILLIAM REHNQUIST AND JUSTICES HARRY BLACKMUN JOHN PAUL STEVENS SANDRA DAY O'CONNOR ANTONIN SCALIA AND ANTHONY KENNEDY JUSTICE CLARENCE THOMAS WROTE A PARTIAL DISSENT WHICH WAS JOINED BY JUSTICE DAVID SOUTER THE DISSENTERS SAID THEY WOULD HAVE ALLOWED BOTH THE EXCESSIVESPEED CLAIM AND THE INADEQUATEWARNING CLAIM CSX TRANSPORTATION INC VS EASTERWOOD 9304220129 930422 MIDAS SHOPS WILL OFFER CHILD CAR SEATS AT COST CHICAGO A COMPANY THAT NORMALLY FIXES MUFFLERS AND BRAKES WILL BEGIN SELLING CHILD CAR SEATS AT COST IN AN EFFORT TO REDUCE AUTO ACCIDENT INJURIES TO YOUNGSTERS MIDAS INTERNATIONAL CORP A UNIT OF WHITMAN CORP SAID THAT BEGINNING MAY 1 ITS 1800 US SHOPS WILL MAKE THE SEATS AVAILABLE TO CONSUMERS AT ITS WHOLESALE COST OF 42 NO OTHER PURCHASE IS NECESSARY MIDAS SAID AFTER THE SEATS ARE NO LONGER NEEDED CONSUMERS CAN RETURN THEM AND RECEIVE A CERTIFICATE GOOD FOR 42 WORTH OF SERVICE ON THEIR VEHICLE THE COMPANY SAID MIDAS WILL DONATE THE USED SEATS TO NEEDY FAMILIES OR HOSPITALS THAT LEND SEATS TO NEW PARENTS THE PROGRAM HAS BEEN TESTED IN MORE THAN A DOZEN MARKETS AROUND THE US FOR ABOUT TWO YEARS DURING WHICH THE COMPANY HAS DONATED ABOUT 3000 USED SEATS TO CHILDREN'S HOSPITALS MIDAS CALLS THE PROGRAM PROJECT SAFE BABY I CAN'T THINK OF A CAUSE MORE IMPORTANT THAN PROTECTING INFANTS AND CHILDREN FROM ACCIDENTS SAID JOHN R MOORE MIDAS PRESIDENT AND CHIEF EXECUTIVE OFFICER NO ONE IS TAKING A PROFIT ON THE PROGRAM HE ADDED THE SEATS INVOLVED ARE MANUFACTURED BY CENTURY PRODUCTS CO MACEDONIA OHIO THE MODEL AVAILABLE AT MIDAS IS THE 1000 STE A CLOTHCOVERED SEAT DESIGNED FOR INFANTS AND TODDLERS WEIGHING UP TO 40 POUNDS 9304220128 930422 DREYFUS 1STQUARTER NET ROSE NEW YORK DREYFUS CORP SAID FIRSTQUARTER NET INCOME ROSE 11 MAINLY BECAUSE OF HIGHER FEES EARNED ON ASSETS UNDER MANAGEMENT THE FINANCIAL SERVICES CONCERN PRIMARILY A MANAGER OF MUTUAL FUNDS REPORTED NET OF 252 MILLION OR 68 CENTS A SHARE COMPARED WITH 228 MILLION OR 60 CENTS A SHARE IN THE YEAREARLIER QUARTER REVENUE ROSE 15 TO 929 MILLION FROM 802 MILLION NET FEES IN THE QUARTER INCREASED 15 TO 758 MILLION FROM 657 MILLION 9304220127 930422 FINANCING BUSINESS POGO PRODUCING CO POGO PRODUCING CO HOUSTON STANDARD & POOR'S CORP CITING REDUCED DEBT LEVELS SAID IT RAISED THE CREDIT RATINGS ON POGO'S 150 MILLION OF DEBT S&P SAID IT INCREASED THE RATINGS ON ITS SUBORDINATED DEBT TO SINGLEB FROM SINGLEBMINUS DURING THE PAST FEW YEARS THE EXPLORATION AND PRODUCTION COMPANY HAS LIMITED ITS CAPITAL SPENDING TO LESS RISKY DEVELOPMENT PROJECTS THE RESULT ACCORDING TO S&P IS AN AVERAGE OILFINDING COST FOR THE FIVE YEARS ENDED IN 1992 OF 373 A BARREL WHICH IS BETTER THAN THE INDUSTRY AVERAGE S&P SAID IMPROVEMENT IN POGO'S FINANCIAL FLEXIBILITY AND OPERATIONS SHOULD ALLOW ADEQUATE CASH FLOW AND PROFIT DESPITE VOLATILE OIL AND GAS PRICES 9304220126 930422 IHI OF JAPAN TO TRIM UNIT'S STAFF TOKYO ISHIKAWAJIMAHARIMA HEAVY INDUSTRIES CO A JAPANESE HEAVY MACHINERY MAKER SAID IT WILL SLIM ITS AIRCRAFTENGINE DIVISION WORK FORCE BY ABOUT 500 AS A WAY OF COPING WITH THE SLOWDOWN IN THE GOVERNMENT'S DEFENSE BUDGET AND THE GLOBAL SLUMP IN AIRLINE OPERATIONS IHI WILL ACCOMPLISH THE REDUCTION BY HIRING FEWER NEW COLLEGE GRADUATES TRANSFERRING PERSONNEL TO SUBSIDIARIES AND THROUGH ATTRITION THE LABOR ADJUSTMENT WILL BE COMPLETED BY THE CLOSE OF THE FISCAL YEAR ENDING MARCH 31 1997 THE AIRCRAFTENGINE DIVISION HAD ANNUAL SALES OF ABOUT 130 BILLION YEN 118 BILLION COMPRISING ABOUT 15 OF IHI'S SALES WITHIN THE DIVISION ABOUT 80 OF SALES COME FROM ORDERS FROM JAPAN'S DEFENSE AGENCY AND THE REMAINING SALES ARE TO THE PRIVATE SECTOR MOSTLY THROUGH EXPORTS 9304220125 930422 DRUG MAKERS ARE CRITICIZED FOR VACCINE PRICES IN US WASHINGTON DEMOCRATIC LAWMAKERS ACCUSED DRUG COMPANIES OF TAKING ADVANTAGE OF AMERICANS BY CHARGING MORE FOR VACCINES IN THE US THAN IN CANADA THE DRUG MAKERS WERE TAKEN TO TASK AT THE END OF A LONG HEARING BY HOUSE AND SENATE HEALTH PANELS ON THE CLINTON ADMINISTRATION'S PLAN TO MAKE THE GOVERNMENT THE SOLE BUYER OF CHILDHOOD VACCINES THE DEMOCRATS NOTED THAT IN CANADA WHERE THE GOVERNMENT BUYS THE VACCINES THE DRUG COMPANIES CHARGE LESS AND STILL MAKE A PROFIT DRUG COMPANY OFFICIALS ARGUED THAT IT'S UNFAIR TO COMPARE HOW MUCH THEY CHARGE FOR OR PROFIT FROM VACCINES IN PARTICULAR COUNTRIES SOME WESTERN NATIONS PAY MORE THAN THE US FOR VACCINES THEY SAID THE DRUG MAKERS OPPOSE MAKING THE GOVERNMENT THE SOLE PURCHASER IN THE US GORDON DOUGLAS PRESIDENT OF MERCK & CO'S VACCINE DIVISION SAID LACK OF VACCINE SUPPLY ISN'T THE PROBLEM AND THAT UNIVERSAL PURCHASE WHICH DOESN'T MEAN UNIVERSAL IMMUNIZATION ISN'T THE ANSWER INSTEAD THE DRUG MAKERS SAID MORE MONEY SHOULD BE SPENT ON IMPROVING ACCESS AND TRACKING THAT WOULD MAKE SURE ALL CHILDREN GET THE APPROPRIATE SHOTS AT THE RECOMMENDED AGES 9304220124 930422 WARNERLAMBERT LITIGATION MORRIS PLAINS NJ WARNERLAMBERT CO SAID ITS NOVON PRODUCTS GROUP AND CLEAN GREEN PACKING CO SETTLED PATENT LITIGATION ON STARCHBASED THERMOPLASTIC MATERIALS ALTHOUGH DETAILS OF THE AGREEMENT ARE CONFIDENTIAL CLEAN GREEN PACKING A UNIT OF MINNEAPOLISBASED ENVIRONMENTAL TECHNOLOGIES USA INC ACCEPTED THE NOVON PATENTS AND WILL PAY ROYALTIES ON ITS SALES OF PRODUCTS WHICH CONTAIN A STARCHBASED THERMOPLASTIC MATERIAL NOVON PRODUCTS ROCKFORD ILL SUPPLIES FULLY BIODEGRADABLE MATERIALS 9304220123 930422 FIRST DATA'S PROFIT JUMPS 21 NEW YORK FIRST DATA CORP SAID FIRSTQUARTER NET INCOME JUMPED 21 BOOSTED BY GROWTH IN CREDITCARD PROCESSING AND SERVICES TO THE MUTUAL FUND AND CABLETELEVISION BUSINESSES FIRST DATA WHICH IS 22OWNED BY AMERICAN EXPRESS CO SAID PROFIT FOR THE QUARTER CLIMBED TO 363 MILLION OR 33 CENTS A SHARE SLIGHTLY EXCEEDING ANALYSTS' EXPECTATIONS OF ABOUT 32 CENTS A SHARE A YEAR EARLIER FIRST DATA HAD NET OF 30 MILLION OR 29 CENTS A SHARE REVENUE CLIMBED 23 TO 3468 MILLION FROM 2822 MILLION IN LATE NEW YORK STOCK EXCHANGE TRADING FIRST DATA FELL 625 CENTS TO 3525 9304220122 930422 ADELPHIA DELAYS SHARE OFFERING COUDERSPORT PA ADELPHIA COMMUNICATIONS CORP SAID IT POSTPONED INDEFINITELY AN OFFERING OF 10 MILLION COMMON SHARES VALUED AT ABOUT 135 MILLION AND 100 MILLION OF SENIOR DEBENTURES THE CABLE SYSTEM OPERATOR WHICH HAS ABOUT 15 MILLION SHARES OUTSTANDING SAID THE POSTPONMENT IS THE RESULT OF UNCERTAINTIES CREATED BY THE FEDERAL COMMUNICATIONS COMMISSION RULING INVOLVING RATE CAPS ADELPHIA SAID IT'S WAITING FOR CLARIFICATION OF THE REGULATIONS WHICH IS SCHEDULED LATE THIS MONTH OR EARLY NEXT MONTH 9304220121 930422 KLOECKNER TO SELL UNIT FOR 125 DUISBURG GERMANY INSOLVENT STEEL AND ENGINEERING GROUP KLOECKNERWERKE AG WILL SELL ITS SPECIALTYSTEEL UNIT KLOECKNER EDELSTAHL GMBH TO AN INVESTOR GROUP FOR THE SYMBOLIC PRICE OF TWO MARKS 125 JUERGEN GROSSMANN WHO RESIGNED AS CHAIRMAN OF THE SUBSIDIARY ON FEB 15 AFTER ANNOUNCING HIS INTENTION TO NEGOTIATE A TAKEOVER OF THE UNPROFITABLE OPERATION WILL ACQUIRE 75 OF THE COMPANY WHICH IS BASED IN GEORGSMARIENHUETTE THE REMAINING 25 WILL BE ACQUIRED BY FRANKFURTBASED CONSULTANTS DRUEKER & CO A KLOECKNERWERKE SPOKESMAN EXPLAINED THE TWOMARK SALE PRICE BY SAYING NO STEEL COMPANY IS MAKING PROFITS AT PRESENT ONCE THE DEAL IS CLEARED THE BUYERS WILL HAVE TO SHOULDER THE LOSSES IN 1992 THE DIVISION RACKED UP LOSSES OF 60 MILLION MARKS 376 MILLION 9304220120 930422 HUNTINGTON SETS PACT WORTH 1545 MILLION FOR COMMERCE BANC COLUMBUS OHIO HUNTINGTON BANCSHARES INC BOLSTERING ITS PRESENCE IN WEST VIRGINIA AGREED TO ACQUIRE COMMERCE BANC CORP IN A STOCK SWAP WITH AN INDICATED VALUE OF 1545 MILLION THE MOVE IS HUNTINGTON'S SECOND ACQUISITION AGREEMENT IN WEST VIRGINIA IN FIVE MONTHS ONCE COMPLETED THE TRANSACTION WILL MAKE IT THE STATE'S THIRDLARGEST BANK IN TOTAL ASSETS AFTER LEADER BANC ONE CORP WHICH HAS AGREED TO ACQUIRE CHARLESTONBASED KEY CENTURION BANCSHARES INC AND THE NO 2 BANK INDEPENDENT ONE VALLEY BANCORP OF WEST VIRGINIA INC ALSO IN CHARLESTON COMMERCE WHICH IS ALSO BASED IN CHARLESTON HAS 894 MILLION IN ASSETS HUNTINGTON WHICH HAS 14 BILLION IN ASSETS EXPECTS ITS WEST VIRGINIA OPERATIONS TO HAVE 24 BILLION IN ASSETS FOLLOWING COMPLETION OF THE COMMERCE ACQUISITION AS WELL AS A PREVIOUSLY ANNOUNCED PLAN TO ACQUIRE CB&T FINANCIAL CORP FAIRMONT WVA FOR 132 MILLION UNDER THE AGREEMENT EACH COMMERCE SHAREHOLDER WILL RECEIVE 26 A SHARE PAYABLE IN HUNTINGTON COMMON STOCK COMMERCE HAS 5943462 MILLION SHARES OUTSTANDING THE TRANSACTION WILL BE ACCOUNTED FOR AS A POOLING OF INTERESTS THE EXCHANGE RATIO WILL BE BASED ON THE AVERAGE CLOSING PRICE OF HUNTINGTON COMMON FOR THE FIVE DAYS PRIOR TO THE CLOSING DATE COMMERCE SHAREHOLDERS WILL RECEIVE NO LESS THAN 09 SHARES NOR MORE THAN 11 SHARES OF HUNTINGTON HUNTINGTON SAID THE PRICE IS 194 TIMES COMMERCE'S MARCH 31 BOOK VALUE IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY HUNTINGTON CLOSED AT 26375 DOWN 25 CENTS COMMERCE CLOSED AT 25 UP 1 9304220119 930422 LETTERS TO THE EDITOR LAYING ODDS ON PCB CONTENT DONALD MILLER LETTERS TO THE EDITOR APRIL 13 CHALLENGES DENNIS T AVERY AUTHOR OF YOUR APRIL 1 EDITORIALPAGE ARTICLE FRONTLINE' PERPETUATES PESTICIDE MYTHS TO NAME ANY VALID STUDY SHOWING WILDLIFE LOSSES ATTRIBUTABLE TO PCBS THE LITERATURE IN THIS FIELD CUSTOMARILY REPORTED DETECTION OF A MIXTURE OF PCBS AND DDT IN WILDLIFE DDT WAS BLAMED BECAUSE IT WAS THERE IT WAS OBVIOUSLY NOT POSSIBLE TO FEED PCBS TO WILDLIFE BUT ANOTHER STUDY COMPARED DDT PCBS AND MERCURY IN LAYING HENS DDT AT 100 PARTS PER MILLION OF DIET HAD NO DETRIMENTAL EFFECT ON EGG PRODUCTION OR HATCHABILITY PCBS AT 20 PPM REDUCED EGG PRODUCTION AND ALMOST COMPLETELY ELIMINATED HATCHABILITY METHYL MERCURY 20 PPM LOWERED EGG PRODUCTION HATCHABILITY AND EGGSHELL STRENGTH LAYING HENS ARE CLOSE RELATIVES OF JUNGLE FOWL 9304220118 930406 LETTERS TO THE EDITOR LET'S SET THE RECORD STRAIGHT IN YOUR MARCH 19 EDITORIAL ON CREDULITY YOU STATE THAT YOU DID NOT FIRE RAYMOND BONNER THE FORMER TIMES CORRESPONDENT IN EL SALVADOR THE NEW YORK TIMES DID YOU AMEND THAT SLIGHTLY BY SAYING THAT AS THE THENMANAGING EDITOR I PULLED MR BONNER OFF THE BEAT AND THAT THEN HE LEFT YOU ADD IF THE TIMES THINKS THAT THE RECENT CONFIRMATION OF MR BONNER'S STORIES ABOUT THE MASSACRE BY EL SALVADORAN GOVERNMENT TROOPS VINDICATES HIM THEN THE TIMES SHOULD REHIRE HIM THUS THE WALL STREET JOURNAL IN ITS CRITICISM OF MR BONNER PICKS UP AND REPEATS TWO LIES ONE IS THAT MR BONNER WAS FIRED OR PUSHED OUT OF THE TIMES THE OTHER THAT SUCH A STEP WAS TAKEN IN CONNECTION WITH MR BONNER'S REPORTING ON THE MASSACRE YOU WROTE THAT EDITORIAL WITHOUT ANY ATTEMPT TO ASK ME IF THE PARTS PERTAINING TO ME WERE TRUE YOUR VIOLATION OF ELEMENTARY JOURNALISTIC ETHICS DOES ASTONISH ME BUT I BELIEVE THAT THE FAILURE TO GET IN TOUCH WITH ME WAS AN ABERRATION ON THE PART OF A NEWSPAPER I RESPECT THEREFORE I AM WRITING THIS LETTER ONE OF VERY FEW I HAVE WRITTEN TO ANY NEWSPAPER I THOUGHT YOU AND YOUR READERS WOULD BE INTERESTED IN KNOWING THE TRUTH ABOUT THE JOURNALISTIC AND POLITICAL FALSEHOODS YOU HELPED SPREAD IT WILL ALSO SET THE RECORD STRAIGHT FOR JOURNALISTS WHO HAVE SEEN YOUR EDITORIAL OR WILL COME ACROSS IT IN THE FUTURE OR HAVE SEEN ONE OF THE VARIATIONS OF THESE FALSEHOODS IN OTHER LESS ADMIRABLE JOURNALS OVER THE PAST DECADE IN 1983 THE COLUMBIA JOURNALISM REVIEW RICHLY FULFILLED ITS REPUTATION OF THE TIME FOR POLITICIZED AMATEURISM BY PRINTING A PIECE HINTING AND IMPLYING BUT OF COURSE NEVER PRESENTING THE SLIGHTEST PROOF THAT MR BONNER WAS WITHDRAWN BY THE TIMES BECAUSE THE US GOVERNMENT PUT PRESSURE ON ME AND THE NEW YORK TIMES THE REVIEW'S FAIRY TALE WAS PICKED UP BY OTHER SLOPPY OR POLITICALLY MOTIVATED JOURNALISTS AND SOMETIMES EMBELLISHED UNTIL JUST ABOUT EVERYBODY EVEN FORGOT WHERE IT ORIGINATED BUT UNTIL YOU CAME ALONG DOING THE SAME THING I NEVER REPLIED BECAUSE I DID NOT SEE IT IN ANY NEWSPAPER FOR WHICH I HAD ANY RESPECT SO NOW I WANT TO SAY THAT THAT STORY ABOUT THE TIMES OR ANY VARIANT THAT MR BONNER WAS TAKEN OUT OF EL SALVADOR BECAUSE OF PRESSURE FROM THE US GOVERNMENT OR PRESSURE OF ANY KIND WHATSOEVER OR BECAUSE OF HIS REPORTING ON THE MASSACRE IS A LIE IS THAT CLEAR ENOUGH THIS KIND OF CONSPIRATORIAL MYTH MAKING ANOTHER WAY OF SAYING LIE FASCINATES ME THE REASON IS THAT THE MYTHS AND THE PROCESS OF INVENTING THEM SO OFTEN REFLECT THE CHARACTER OF THOSE WHO CREATE OR SPREAD THEM THESE PEOPLE ARE REALLY HOLDING UP A MIRROR TO THEMSELVES AND DO NOT EVEN REALIZE IT THEY KNOW THAT IF THEY HAD BEEN PUT UNDER ANY PRESSURE BY A GOVERNMENT AGENCY OR ANYBODY WITH POWER WHY THEY WOULD JUST CRUMBLE SO THEY ASSUME THE EDITOR OF THE TIMES WOULD CRUMBLE TOO THAT IS ONE OF THE MANY EXCELLENT REASONS THAT PEOPLE LIKE THAT DO NOT BECOME EDITORS OF THE TIMES THEY DO NOT HAVE THE GUTS FOR IT IF THE CIA OR ANY OTHER AGENCY OR OFFICIAL HAD TRIED TO PRESSURE THE TIMES INTO REMOVING MR BONNER AS FAR AS I AM CONCERNED HE WOULD HAVE BEEN THERE STILL OR AT LEAST AS LONG AS IT TOOK TO TEACH THE AGENCY AND GOVERNMENT WHAT THE TIMES IS ALL ABOUT BUT IT NEVER HAPPENED AS A MATTER OF FACT I DO NOT RECALL ANY US OFFICIAL IN EL SALVADOR OR IN THE US MAKING ANY COMPLAINT TO ME ABOUT HIM THE US GOVERNMENT DID MAKE PUBLIC ITS UNHAPPINESS WITH MR BONNER AND WE TOOK NOTE OF THAT IN OUR NEWS COLUMNS NOW THE GOVERNMENT HAS GOTTEN AROUND TO CONFIRMING ONE OF MR BONNER'S MAJOR STORIES THAT IT ONCE CALLED FALSE THE MASSACRE OF VILLAGERS BY THE MILITARY IF THAT VINDICATES MR BONNER'S COVERAGE OF THAT STORY WHICH IT DOES IT ALSO VINDICATES THE TIMES FOR PRINTING IT IF THE US OFFICIALS HAD COMPLAINED TO ME I WOULD HAVE LISTENED AS I TRIED TO LISTEN TO EVERYBODY WITH A COMPLAINT COMPLAINTS ARE PERFECTLY LEGITIMATE AS LONG AS NOT ACCOMPANIED BY THREATS A POINT THE CONSPIRACYMINDED MYTH MAKERS ARE INCAPABLE OF GRASPING NO PRESSURE WAS EVER PUT ON ME BY ANY GOVERNMENT AGENCY TO REMOVE OR PUNISH MR BONNER OR ANY OTHER CORRESPONDENT NEVER DURING MY LONG EDITORSHIP AT THE TIMES THIS FACT WILL UPSET MANY OF THE CONSPIRACY THEORISTS AND GOVERNMENT HATERS INSIDE AND OUTSIDE OF JOURNALISM AND DOUBTLESS THEY WILL IGNORE IT BUT THERE IT IS NOW AS FOR YOUR OWN PARTICIPATION IN MYTH MAKING MR BONNER WAS NOT PUSHED OUT OR FIRED OUT OR PULLED OUT AND AT NO TIME WAS HIS TRANSFER TO NEW YORK AT ALL INVOLVED WITH THE MASSACRE STORY HE WAS ASKED TO RETURN TO NEW YORK AFTER HE HAD BEEN IN EL SALVADOR A SUBSTANTIAL AMOUNT OF TIME THE REASON IS SIMPLE HAVING TO DO WITH TRAINING AND STAFF DEVELOPMENT PROSAIC THINGS NOT PLOTS AND PRESSURES MR BONNER WAS NOT AN EXPERIENCED JOURNALIST AT ALL WHEN HE BEGAN WORKING FOR THE TIMES BUT MR BONNER WAS ON THE SPOT BECAME OUR STRINGER AND PERFORMED BRAVELY AND FRUITFULLY AS A MATTER OF FACT HE WAS PROMOTED TO STAFF A STEP TAKEN RARELY WITH STRINGERS BUT AFTER SOMETIME THE FEELING BEGAN TO GROW AMONG SOME EDITORS WHO HANDLED HIS COPY DAILY THAT IN A SENSE WE WERE EXPLOITING MR BONNER DEMANDING A GREAT DEAL WITHOUT GIVING HIM THE JOURNALISTIC TRAINING MOST OTHER TIMES REPORTERS HAD ACQUIRED ON OR OFF THE TIMES BEFORE THEY WENT INTO A FOREIGN ASSIGNMENT FOR US AT THE TIMES REPORTERS ARE ALMOST NEVER SENT ABROAD WITHOUT EXPERIENCE AT THE HOME OFFICE AND REPORTERS HIRED ABROAD ARE ALMOST ALWAYS ASKED TO WORK IN NEW YORK FOR A WHILE THE LENGTH DEPENDING ON EXPERIENCE THE IDEA IS TO MAKE THE REPORTER FAMILIAR WITH THE WAYS OF THE PAPER AND ITS STAFF PART OF THE TIMES JOURNALISTIC FAMILY NOT AN OUTSIDER ON THE PAYROLL SO WE ASKED MR BONNER TO RETURN NOT TO PUNISH HIM BUT TO EQUIP HIM FURTHER FOR AN ASSIGNMENT ANYPLACE APPARENTLY HE DID NOT LIKE WORKING IN NEW YORK OR PREFERRED TO BE ABROAD BECAUSE AFTER A TIME HE RESIGNED AT NO TIME DID MR BONNER INDICATE TO ME ANY BELIEF THAT HE HAD BEEN PULLED PUSHED OR FIRED OUT BUT WHEN HE LEFT THE CONSPIRACYMINDED WENT TO WORK CONCOCTING THE MYTH OF THE TIMES CRUMBLING UNDER GOVERNMENT PRESSURE THAT IS THE WAY THEIR MINDS WORK AND WHAT THEIR MIRRORS SHOW THEM ABOUT THEMSELVES THAT IS NO GREAT MATTER MYTH MAKING ABOUT THE TIMES IS A JOURNALISTIC INDUSTRY SOMETIMES THEY ARE JUST GOSSIP MYTHS SOMETIMES LIKE THIS ONE THEY ARE LARGELY POLITICALLY INSPIRED THEIR ONLY SIGNIFICANCE COMES WHEN THEY ARE REPEATED AND SPREAD SO OFTEN THAT THEY BECOME ACCEPTED AS REALITY BY JOURNALISTS WHO ALLOW THEMSELVES TO BE DUPED OR FAIL TO CHECK THROUGH ORDINARY JOURNALISTIC TECHNIQUES I AM SORRY THAT IN THIS CASE FOR ONE OF MY FAVORITE NEWSPAPERS BOTH SHOES FIT BUT I KNOW YOU HAVE MANY MUCH BETTER PAIRS WEAR THEM WELL SEE RELATED LETTERS LETTERS TO THE EDITOR SALVADOR AND THE BONNER MYSTERY WSJ APRIL 22 1993 9304060033 9304220117 930422 MARKETING & MEDIA PEPSICO INC IS SET TO TEST TWO LINES OF FRUITFLAVORED DRINKS THIS WEEK BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL PEPSICO INC HOPING TO MAKE A BIG SPLASH IN THE FASTGROWING NONCOLA BEVERAGE ARENA IS ABOUT TO TEST TWO LINES OF FRUITFLAVORED DRINKS ONE LINE CALLED SPLASH IS A NEW SPARKLING WATER DEVELOPED THROUGH A YEAROLD PARTNERSHIP WITH OCEAN SPRAY CRANBERRIES INC SPLASH FLAVORS INCLUDE CRANBERRY CONCORD GRAPE AND CRANBERRYSTRAWBERRY THE COMPANIES WILL ALSO INTRODUCE THREE NEW OCEAN SPRAY NONCARBONATED LEMONADE DRINKS BOTH GO INTO TEST MARKETS THIS WEEK WITH FEWER CALORIES THAN REGULAR PEPSI AND PRICED AT ABOUT 89 CENTS TO 99 CENTS A BOTTLE SPLASH IS LIKELY TO APPEAL TO SLIGHTLY OLDER CONSUMERS THAN THE CORE 12YEAROLD TO 24YEAROLD SOFTDRINK MARKET THE LEMONADES ARE ALSO EXPECTED TO ATTRACT PRETEEN BUYERS PEPSI'S NEW ENTRIES INTO THE 44 BILLION MARKET FOR SOCALLED SHELFSTABLE JUICES REPRESENT ITS BIGGEST DEVELOPMENT PROJECT SINCE IT INTRODUCED THE COLORLESS CRYSTAL PEPSI COLA LAST YEAR THE MULTIMILLION DOLLAR PROJECT ALSO MARKS PEPSI'S FIRST LEMONADE AND FIRST FRUITFLAVORED SPARKLING WATER TWO UNDERDEVELOPED MARKETS LACKING A CLEAR LEADER AS GROWTH IN THE 47 BILLION TRADITIONAL SOFTDRINK MARKET HAS SLOWED TO LESS THAN 2 A YEAR PEPSI AND RIVAL COCACOLA CO HAVE BEEN AGGRESSIVELY DEVELOPING NEW BEVERAGES INCLUDING TEAS SPORTS DRINKS AND CLEAR COLAS THE NEW AGE BEVERAGE CATEGORY IN WHICH PEPSI'S SPLASH FRUIT SPARKLERS WILL COMPETE IS EXPECTED TO GROW 10 THIS YEAR THE LATEST MARKET TESTS BY PEPSI WHICH HAS BEEN MORE AGGRESSIVE IN NEWPRODUCT LAUNCHES THAN COKE UNDERSCORE A FUNDAMENTAL MARKETING SHIFT AMONG THE COLA GIANTS RATHER THAN ATTEMPTING TO TURN LEMONADE DRINKERS FOR EXAMPLE INTO COLA CONVERTS PEPSI IS INCREASINGLY TRYING TO DEVELOP BETTERTASTING LEMONADES TO WIN THEIR BUSINESS THE CONVENTIONAL SOFTDRINK BUSINESS HAS BEEN SO SLUGGISH LATELY SAYS JESSE MEYERS PUBLISHER OF TRADE NEWSLETTER BEVERAGE DIGEST IF YOU DON'T PLAY IN THE NEWPRODUCT GAME YOU DON'T GROW UNLIKE SOME OF THE CLEAR NEW AGE DRINKS THAT ARE BASICALLY CARBONATED WATER WITH LIGHT FRUIT FLAVORS SPLASH AND THE LEMONADE LINE WERE FORMULATED MORE LIKE MAINSTREAM DRINKS WITH BOLD INTENSE FLAVORS AND DARK COLORS TO DISTINGUISH PEPSI'S PRODUCTS FROM THE LIGHTER TASTE OF RIVAL DRINKS ADVERTISING FOR SPLASH USES THE LINE TASTE THE INVIGORATION THE SLOGAN FOR THE LEMONADE DRINK IS REAL LEMONADE WITH A REAL ATTITUDE USING FRUITFLAVOR COMBINATIONS IS AN INCREASINGLY POPULAR TREND AMONG BEVERAGE COMPANIES UNUSUAL BLENDS SUCH AS OCEAN SPRAY'S LEMONADE RASPBERRY AND CRANBERRY LEMONADE OFTEN ENTICE PEOPLE TO TRY NEW DRINKS BUT IN THE PAST YEAR THE SHEER NUMBER OF NEW AND EXOTIC COMBINATIONS HAS OVERWHELMED CONSUMERS DAMPING THEIR DESIRE TO EXPERIMENT BEVERAGE CONSULTANTS SAY THE OCEAN SPRAY NAME AND FAMILIAR BLUEWAVE LOGO SHOULD BE BENEFICIAL ON THE NEW SPLASH LABELS BUT PERHAPS LESS SO ON THE LEMONADES THERE'S GREATER LICENSE TO EXPERIMENT TO ACCEPT NEW FLAVORS UNDER THE SECURITY OF A BRAND NAME SAYS TOM PIRKO A BEVERAGE CONSULTANT IN LOS ANGELES HOWEVER THERE COULD BE A CRANBERRY LIABILITY OCEAN SPRAY'S NAME IS INTEGRALLY TIED TO THE LITTLE RED BERRY AND CONSUMERS MAY HESITATE TO TRY AN OCEAN SPRAY LEMONADE TED HISSEY A PEPSI GENERAL MANAGER SAYS HIS COMPANY'S RESEARCH SHOWS OTHERWISE AND THAT THE OCEAN SPRAY BRAND NAME MAKES THE NEW PRODUCTS A MUCH EASIER SELL TO GROCERY STORES IT OPENS A LOT OF DOORS HE SAYS THIS WEEK PEPSI WILL BEGIN DISTRIBUTING SPLASH DRINKS IN ATLANTA WEST PALM BEACH FLA FORT LAUDERDALE FLA AND SPOKANE WASH IT WILL TEST MARKET THE LEMONADES IN THE TWO FLORIDA CITIES SPOKANE AND HICKORY NC 9304220116 930422 SCHOOL CHOICE WORKS IN MINNESOTA BY JOE NATHAN MINNEAPOLIS WILL PRESIDENT CLINTON FOLLOW THROUGH ON HIS SUPPORT FOR PUBLIC SCHOOL AND CHARTERED PUBLIC SCHOOL CHOICE HIS PROPOSED PACKAGE TO CONGRESS ANNOUNCED YESTERDAY CONTAINED MODEST SUPPORT FOR THESE IDEAS PERMITTING STATES TO SPEND MONEY ON THEM BUT THE PRESIDENT'S CENTRAL ROLE IN EDUCATION IS TO SPEAK DIRECTLY TO THE PUBLIC THERE IS PLENTY OF GOOD NEWS HE COULD SHARE ABOUT PUBLIC SCHOOL CHOICE AND CHARTER SCHOOLS DESPITE THE INTENSE EFFORT BY THE EDUCATION ESTABLISHMENT TO DISCREDIT CHOICE IN GENERAL AND MINNESOTA'S PROGRAMS IN PARTICULAR FIRST PARENT TEACHER AND LEGISLATIVE INTEREST IS GROWING NATIONAL AND STATEWIDE POLLS FIND THAT MORE THAN 60 OF PARENTS WANT THE POWER TO SELECT AMONG VARIOUS PUBLIC SCHOOLS THE 1989 ARKANSAS LEGISLATURE FOLLOWED THENGOV CLINTON'S RECOMMENDATIONS TO ADOPT CROSSDISTRICT PUBLIC SCHOOL CHOICE OTHER STATE LEGISLATURES HAVE EXPANDED FAMILIES' SCHOOL CHOICES IN CALIFORNIA COLORADO FLORIDA GEORGIA IDAHO IOWA MASSACHUSETTS MINNESOTA NEW MEXICO OHIO UTAH WASHINGTON AND WISCONSIN MANY LAWS ARE BASED ON MINNESOTA'S WIDELY DISCUSSED RARELY UNDERSTOOD PROGRAMS A 1992 STATEWIDE POLL CONDUCTED BY MAJOR EDUCATION GROUPS FOUND THAT 76 OF MINNESOTANS ENDORSED OUR PUBLIC SCHOOL CHOICE LAWS MORE THAN 10000 HIGH SCHOOL DROPOUTS HAVE RETURNED TO SCHOOL BECAUSE OF THE STATE'S PROGRAMS BUT CHOICE OPPONENTS HAVE PROMOTED FIVE MAJOR MYTHS MR CLINTON SHOULD HELP REFUTE THEM MYTH ONE MINNESOTA'S SCHOOL CHOICE PLANS HAVEN'T HAD MUCH IMPACT A RECENTLY RELEASED STUDY OF 126 MINNESOTA SCHOOL PRINCIPALS CONCLUDED THAT CHOICE STIMULATED IMPROVEMENTS TO SCHOOL CURRICULA PROMOTED GREATER PARENT AND TEACHER INVOLVEMENT IN PLANNING AND DECISIONMAKING AND INCREASED ETHNIC DIVERSITY OF SCHOOLS MORE THAN 150 NEW MAGNET SCHOOLS AND SCHOOLS WITHIN SCHOOLS HAVE BEEN CREATED IN THE PAST FIVE YEARS MINNEAPOLIS AND ST PAUL MORE THAN DOUBLED THEIR OPTIONS OVER THE PAST SEVEN YEARS OFTEN ATTRACTING SUBURBAN AS WELL AS INNERCITY YOUNGSTERS CHOICE ALSO HELPED PRODUCE SEVERAL OF THE NATION'S FIRST RURAL MAGNET SCHOOLS SUCH AS THE CYRUS MATHSCIENCE MAGNET ELEMENTARY SCHOOL WHICH IS RUN BY A COMMITTEE OF TEACHERS REDBOOK RECENTLY NAMED IT ONE OF THE NATION'S 51 BEST PUBLIC ELEMENTARY SCHOOLS TEACHERS ESTABLISHED OTHER NEW SCHOOLS IN DELAVAN MILTONA RANDALL NERSTRAND BLACKDUCK FAIRMONT MORRIS AND VIRGINIA THESE RURAL SCHOOLS ALONG WITH RECENTLY DEVELOPED SUBURBAN AND INNERCITY OPTIONS GIVE SEVERAL HUNDRED THOUSAND STUDENTS TRUE CHOICES WITHIN THEIR OWN DISTRICTS A RECENT REPORT ON SCHOOL CHOICE BY THE CARNEGIE FOUNDATION FOR THE ADVANCEMENT OF TEACHING INSISTED THAT LESS THAN 4 OF MINNESOTANS ARE USING THE STATE'S CHOICE PROGRAM CARNEGIE IGNORED WITHIN DISTRICT CHOICE PROGRAMS WHICH HAVE EXPLODED OVER THE PAST FIVE YEARS MINNESOTA'S POSTSECONDARY OPTIONS LAW ALLOWS PUBLICSCHOOL 11TH AND 12THGRADERS TO ATTEND UNIVERSITIES WITH TAX FUNDS FOLLOWING THE STUDENTS MORE THAN 50000 STUDENTS HAVE USED THIS LAW SINCE IT BEGAN IN 1985 CRITICS PREDICTED THAT MOST HIGHSCHOOLERS WOULD BE LOST AT COLLEGE BUT AT MANY POSTSECONDARY INSTITUTIONS SUCH AS THE UNIVERSITY OF MINNESOTA HIGH SCHOOL STUDENTS HAVE EARNED A HIGHER GRADEPOINT AVERAGE THAN THE FRESHMAN CLASS WHAT ABOUT THE WIDER IMPACT THE STATE'S HIGH SCHOOLS RESPONDED BY DOUBLING THE NUMBER OF ADVANCED PLACEMENT COURSES OFFERED SINCE THE PROGRAM STARTED POSTSECONDARY OPTIONS ALSO HELPED CONVINCE 46 HIGH SCHOOLS TO WORK WITH THE UNIVERSITY OF MINNESOTA TO OFFER JOINT COURSES GRANTING BOTH COLLEGE AND HIGH SCHOOL CREDIT CARNEGIE SAID THAT THERE WAS LITTLE GROWTH IN ADVANCED PLACEMENT BUT IT COMPARED CHANGES IN THE PAST THREE YEARS NOT SINCE THE POSTSECONDARY PROGRAM BEGAN IN 1985 MYTH TWO CHOICE PLANS HELP RICH STUDENTS MORE THAN POOR ONES MORE THAN 10000 YOUNG MINNESOTANS USED THE STATE'S SECOND CHANCE CROSSDISTRICT CHOICE LAWS TO REENTER SCHOOL AFTER DROPPING OUT YOUNGSTERS FROM LOWINCOME FAMILIES AND MINORITY GROUPS ARE WELL REPRESENTED IN THESE PROGRAMS THERE'S BEEN A DRAMATIC INCREASE IN ASPIRATION LEVELS AMONG SECOND CHANCE STUDENTS THE PERCENTAGE OF THESE STUDENTS WHO REPORTED THAT THEY PLANNED TO GRADUATE AND CONTINUE THEIR FORMAL EDUCATION MORE THAN DOUBLED AFTER THEY TRANSFERRED TO ANOTHER PUBLIC SCHOOL AMONG TEENAGERS USING SECOND CHANCE TO ATTEND PRIVATE NONSECTARIAN NONEXCLUSIVE SCHOOLS SUCH AS THE MINNEAPOLIS URBAN LEAGUE'S STREET ACADEMY THE PERCENTAGES INCREASED TO 41 FROM 6 THIS EXPERIENCE SHOWS THAT PRIVATE NONSECTARIAN SCHOOLS CAN PLAY A VALUABLE ROLE IN THE EDUCATION OF INNERCITY CHILDREN MYTH THREE PARENTS DON'T CHOOSE SCHOOLS FOR GOOD REASONS SEVERAL CAREFULLY DONE STUDIES SHOW MINNESOTA PARENTS' PRIMARY REASON FOR CHOOSING A SCHOOL IN ANOTHER DISTRICT IS ACADEMICS THOSE STUDIES HAVE BEEN IGNORED CRITICS SAY THAT TOO MANY PARENTS PREFER CONVENIENCE SHOULD PUBLIC SCHOOLS BE INCONVENIENT THE CARNEGIE REPORT FOR EXAMPLE DOESN'T EXPLAIN THAT BEFORE MINNESOTA'S THENGOV RUDY PERPICH PROPOSED OPEN ENROLLMENT ONE SUBURBAN DISTRICT REQUIRED YOUNGSTERS TO GO 14 MILES TO THE NEAREST SCHOOL IN THEIR DISTRICT RATHER THAN WALK ONE TO TWO BLOCKS TO THE NEAREST SCHOOL JUST ACROSS DISTRICT LINES MYTH FOUR CHOICE IS BEING PRESENTED AS A PANACEA NOT IN MINNESOTA OR THE 13 OTHER STATES IN WHICH IT WAS ADOPTED WITH BIPARTISAN SUPPORT MR CLINTON KNEW IT WAS NO PANACEA WHEN HE PROPOSED IT SO DO GROWING NUMBERS OF TEACHERS IN A 1988 SURVEY CONDUCTED BY MINNESOTA'S LARGEST TEACHER UNION MORE THAN 60 OF ITS MEMBERS SUPPORTED CROSSDISTRICT PUBLIC SCHOOL CHOICE CHOICE EXPANDS OPPORTUNITIES FOR TEACHERS TO ACT LIKE ENTREPRENEURS IT IS CENTRAL TO THE TEACHERS AS PROFESSIONALS MOVEMENT EVEN IF UNIONS OFTEN DO NOT RECOGNIZE THAT FACT AWARDWINNING EDUCATOR DEBORAH MEIER HAS NOTED THAT PUBLIC SCHOOL CHOICE WAS THE PREREQUISITE FOR HER WORK IN EAST HARLEM SCHOOLS WITH A FOCUS WITH STAFFS BROUGHT TOGETHER AROUND COMMON IDEAS FREE TO SHAPE A WHOLE SET OF SCHOOL PARAMETERS IN ACCORD WITH THOSE IDEAS MANY TERRIFIC TEACHERS RECOGNIZE THERE'S NO ONE BEST KIND OF SCHOOL FOR ALL STUDENTS THE BEST CHOICE PLANS ARE ACCOMPANIED BY EFFORTS TO EQUALIZE FUNDING AMONG DISTRICTS HELP EDUCATORS CREATE NEW PROGRAMS SO THAT THERE ARE CHOICES NOT JUST CHOICE HELP PARENTS MAKE THOUGHTFUL DECISIONS PROHIBIT SCHOOL ADMISSIONS TESTS AND PROVIDE TRANSPORTATION MINNESOTANS UNDERSTAND WHAT MANY BUSINESS GROUPS HAVE FORGOTTEN THAT SCHOOL CHOICE AND SITE MANAGEMENT GO TOGETHER BUSINESSES GROW BY GIVING THEIR EMPLOYEES MORE DECISIONMAKING POWER BUT EMPLOYEES KNOW CUSTOMERS HAVE OPTIONS IF FAMILIES DON'T HAVE CHOICES HOW EFFECTIVE WILL SITEMANAGEMENT BE HOW EFFECTIVE WOULD IT BE IN YOUR COMPANY IF EMPLOYEES HAD GUARANTEED CUSTOMERS MYTH FIVE CHARTERED PUBLIC SCHOOLS OFFER LITTLE TO REFORM PROGRAMS BOTH MR CLINTON AND EDUCATION SECRETARY RICHARD RILEY HAVE ENDORSED CHARTER SCHOOLS WHICH ENABLE CERTIFIED TEACHERS TO CREATE NEW SCHOOLS OF CHOICE WITH ACCOUNTABILITY FOR STUDENT RESULTS RATHER THAN FOR FOLLOWING THOUSANDS OF RULES CHARTERED PUBLIC SCHOOLS MAY NOT USE ADMISSIONS TESTS MINNESOTA PASSED A LIMITED VERSION OF CHARTERED SCHOOLS IN 1991 CALIFORNIA GEORGIA AND NEW MEXICO ARE ALSO EXPERIMENTING WITH THE IDEA MORE THAN 25 GROUPS OF MINNESOTA EDUCATORS IN URBAN SUBURBAN AND RURAL AREAS TRIED STARTING SUCH SCHOOLS IN JUST THE FIRST YEAR OF THE LAW'S OPERATION MOST HAVE BEEN FRUSTRATED BY THE LAW'S PROVISION THAT A LOCAL SCHOOL BOARD MUST APPROVE THE CHARTER THIS IS LIKE ALLOWING THE NEW YORK TIMES TO DECIDE WHETHER THE WALL STREET JOURNAL CAN BE SOLD IN MANHATTAN CHOICE IS A POWERFUL TOOL LIKE ELECTRICITY WHICH MUST BE HANDLED CAREFULLY SOME CHOICE PROGRAMS INCLUDING SOME PUBLIC SCHOOL PLANS CREATE MORE PROBLEMS THAN THEY SOLVE MINNESOTA'S PLAN ISN'T RIGHT FOR EVERY STATE MR CLINTON SHOULD REPEAT HIS FREQUENTLY VOICED PRESIDENTIAL CAMPAIGN RECOMMENDATION THAT EVERY STATE SHOULD PROVIDE OPTIONS FOR FAMILIES AND EDUCATORS HE COULD HELP AMERICANS UNDERSTAND WHAT CHRIS WILCOX ONE OF MINNESOTA'S EARLIEST SCHOOL CHOICE PARTICIPANTS TOLD THE NATION'S GOVERNORS THREE YEARS AGO CHOICE NOT ONLY GAVE ME A CHANCE TO PERSONALIZE MY EDUCATION BUT IT ALSO GAVE ME THE CONFIDENCE THAT I CAN MAKE SOMETHING OF MYSELF AND CONTROL MY DESTINY MR NATHAN A FORMER PUBLIC SCHOOL TEACHER AND ADMINISTRATOR WAS INVITED IN 1989 BY THENGOV CLINTON TO TESTIFY IN ARKANSAS ABOUT SCHOOL CHOICE HE DIRECTS THE CENTER FOR SCHOOL CHANGE AT THE UNIVERSITY OF MINNESOTA'S HUBERT H HUMPHREY INSTITUTE OF PUBLIC AFFAIRS 9304220114 930422 ATHENA NEUROSCIENCES IN PACTS SOUTH SAN FRANCISCO ATHENA NEUROSCIENCES INC SAID IT REACHED AGREEMENTS WITH THREE COMPANIES FOR PROJECTS RELATED TO ALZHEIMER'S DISEASE ATHENA SAID IT ENTERED INTO A LICENSE AGREEMENT WITH INNOGENETICS NV GHENT BELGIUM FOR THE DEVELOPMENT AND MARKETING OF POTENTIAL DIAGNOSTIC TESTS FOR ALZHEIMER'S IN ADDITION THE COMPANY SAID IT IS EXPANDING EXISTING RESEARCH COLLABORATIONS ON THE DISEASE WITH ELI LILLY & CO INDIANAPOLIS AND HYBRITECH INC SAN DIEGO 9304220113 930421 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 NICOR INC'S FIRSTQUARTER EARNINGS OF 83 CENTS A SHARE AFTER ADJUSTING FOR A 2FOR1 STOCK SPLIT PAYABLE APRIL 26 WERE BETTER THAN THE AVERAGE OF FIVE ANALYSTS' ESTIMATES OF 80 CENTS A SHARE RESULTING IN A POSITIVE EARNINGS SURPRISE OF 375 BECAUSE OF AN ERROR IN THE ZACKS INVESTMENT RESEARCH DATABASE NICOR WAS INCORRECTLY SHOWN AS A NEGATIVE SURPRISE OF 4813 IN YESTERDAY'S QUARTERLY EARNINGS SURPRISES TABLE 9304220112 930422 LEVITT PLEADS GUILTY TO THEFT OF 200000 AT FAMILY FOUNDATION NEW YORK WILLIAM LEVITT JR SON OF THE FAMED SUBURBAN HOUSING DEVELOPER PLEADED GUILTY TO CHARGES THAT HE STOLE 200000 IN 1989 FROM A NONPROFIT FOUNDATION SET UP BY HIS FAMILY MR LEVITT 60 YEARS OLD A LOS ANGELES DEVELOPER WHO SAT ON THE BOARD OF LEVITT FOUNDATION INC ADMITTED HE TOLD THE FOUNDATION HE WAS INVESTING THE 200000 WITH A CALIFORNIA INVESTMENT FIRM THEN TOOK THE MONEY FOR HIS OWN USE AND FALSIFIED RECORDS TO CONCEAL THE THEFT MR LEVITT FACES A MAXIMUM SENTENCE OF ONE YEAR IN PRISON HE HAS AGREED TO PAY BACK THE FOUNDATION MR LEVITT'S FATHER WILLIAM LEVITT SR HAD BEEN ACCUSED BY THE NEW YORK STATE ATTORNEY GENERAL FIVE YEARS AGO OF LOOTING THE SAME FAMILY FOUNDATION TO COVER LOSSES ON FAILED REAL ESTATE DEVELOPMENTS HE LATER SETTLED THE CHARGES BY MAKING PARTIAL RESTITUTION THE SENIOR MR LEVITT CREATOR OF LONG ISLAND'S LEVITTOWN GAINED NATIONAL RECOGNITION FOR BUILDING AFFORDABLE SUBURBAN HOUSING FOR THE MIDDLE CLASS AFTER WORLD WAR II 9304220111 930422 BANKAMERICA SELLS UNIT SAN FRANCISCO BANKAMERICA CORP SAID IT COMPLETED THE SALE OF ITS ARIZONA SUBSIDIARY CALIBER BANK TO INDEPENDENT BANCORP OF ARIZONA THE SALE INCLUDES 49 BRANCHES AND ABOUT 16 BILLION OF DEPOSITS INDEPENDENT BANCORP IS HEADED BY ANTHONY FRANK FORMER POSTMASTER GENERAL AND ONETIME CHAIRMAN OF SAN FRANCISCOBASED FIRST NATIONWIDE BANK CALIBER BANK WILL FOCUS ON SERVING CONSUMERS AND SMALL TO MEDIUMSIZED BUSINESSES MR FRANK SAID HE SAID THE INVESTOR GROUP THAT PURCHASED THE BRANCHES PAID LESS THAN 1 OF DEPOSITS THE SALE COMPLETES THE BRANCH DIVESTITURES THAT WERE REQUIRED WHEN BANKAMERICA MERGED WITH SECURITY PACIFIC CORP LAST YEAR 9304220110 930422 INTERNATIONAL TELEFONICA MUST SELL STAKE MADRID SPAIN'S TELECOMMUNICATIONS MONOPOLY TELEFONICA SA HAS 18 MONTHS TO UNLOAD ITS STAKE IN ONE OF TWO CHILEAN TELEPHONE CONCERNS ACCORDING TO A RULING BY CHILE'S SUPREME COURT THE RULING WAS ISSUED AFTER CHILEAN AUTHORITIES GRANTED CIA DE TELEFONOS DE CHILE SA THE RIGHT TO SET UP A LONGDISTANCE CARRIER IN EXCHANGE THE SUPREME COURT RULED THAT TELEFONICA WILL HAVE TO SELL EITHER ITS 44 STAKE IN CTC OR ITS 20 HOLDING IN EMPRESA NACIONAL DE TELECOMUNICACIONES DE CHILE ENTEL CHILE THE COURT ARGUED THAT TELEFONICA'S POSITION THREATENED CHILE'S ANTIMONOPOLY LAWS 9304220109 930422 LETTERS TO THE EDITOR PROTESTERS' LEGACY DECADES OF REPRESSION AFTER MORE THAN A YEAR OF HEARING BILL CLINTON LIE EVADE AND DISSEMBLE ABOUT HIS ANTIWAR ATTITUDES AND ACTIVITIES AND SERVICE AVOIDANCE IT WAS REFRESHING TO HEAR AN HONEST EVEN IF UNREPENTANT VOICE LIKE MELVIN SMALL'S LETTERS TO THE EDITOR APRIL 5 MR SMALL CLAIMS THAT THE 1969 WAR MORATORIUM RESTRAINED PRESIDENT NIXON FROM UNLEASHING THE SAVAGE BLOW' HE PLANNED FOR NORTH VIETNAM ON NOV 1 MR SMALL IS RIGHT THE ANTIWAR MOVEMENT HELPED THE COMMUNISTS BY PROTECTING THEM FROM THE FULL FORCE OF US POWER UNTIL OUR WILL WAS SPENT IF MR NIXON HAD HIT NORTH VIETNAM IN NOVEMBER 1969 AS HE DID IN DECEMBER 1972 THE PARIS TREATY WOULD HAVE BEEN SIGNED IN 1970 INSTEAD OF 1973 AND WE WOULD HAVE HAD THE WILL TO PUNISH COMMUNIST VIOLATIONS TWENTY YEARS OF COMMUNIST GENOCIDE REPRESSION MISMANAGEMENT AND WARFARE WOULD HAVE BEEN AVOIDED BUT COMMUNISM'S VICTORY IS NOT FINAL THE COMMUNISTS ARE ON THE ROPES THEY ARE BEGGING FOR WESTERN IMPERIALISM TO PROP UP THEIR COLLAPSING ISOLATED CORRUPT SYSTEM EVEN THAT WON'T HELP THOUGH COMMUNISM IS DEAD GONE FINISHED THE INDOCHINA OF THE FUTURE WILL BE THE ONE ENVISIONED BY JOHN KENNEDY LYNDON JOHNSON AND RICHARD NIXON NOT HO CHI MINH AND MESSRS CLINTON AND SMALL AND THEIR ILK 9304220108 930422 MARKETING & MEDIA ADVERTISING ANNUAL AGENCY CONFERENCE DRAWS GROUP OF SOMBER AD EXECUTIVES BY KEVIN GOLDMAN LAGUNA NIGUEL CALIF THIS IS SHAPING UP AS THE SPRING OF DISCONTENT FOR THE ADVERTISING BUSINESS AND AS INDUSTRY INSIDERS GATHER TODAY THEY SEEM BRACED MORE FOR A SOMBER SESSION OF GROUP THERAPY RATHER THAN READY FOR THE CONVENTION THAT BROUGHT THEM HERE THE 75TH ANNUAL CONFERENCE OF THE AMERICAN ASSOCIATION OF ADVERTISING AGENCIES COMES AT AN UNEASY TIME FOR THE TRADE FEWER CONSUMERS ARE BUYING INTO THE BRAND HYPERBOLE THAT HAS BEEN A MADISON AVENUE SIGNPOST FOR DECADES CLIENT DISCONTENT HAS SPARKED A DIZZYING SPATE OF AGENCY DEFECTIONS COMPANIES ARE REEVALUATING THE ROLE OF THEIR AD AGENCIES AMID THE EXPANSION OF DISCOUNT BRANDS HENCE THE FOUR A'S MEET AT THE RITZCARLTON RESORT HERE 80 MILES SOUTH OF LOS ANGELES IN A DEFENSIVE AND CLEARLY LESS THAN CELEBRATORY MOOD OF STRATEGIC RETRENCHMEN IT MAY BE THAT MADISON AVENUE SIMPLY IS GOING TO HAVE TO REINVENT ITSELF THIS MORNING'S ENTIRE SCHEDULE WAS TO BE DEVOTED LARGELY TO A SINGLE TOPIC REBUILDING BRANDS AND RESELLING THE ROLE OF ADVERTISING IN BUILDING BRANDS AS ONE SEMINAR PUTS IT WE HAVE TO REFOCUS THE ATTENTION OF MARKETERS ON THE IMPORTANCE OF CREATING MAINTAINING AND RESTORING THE ECONOMIC VALUE OF BRANDS SAYS LARRY LIGHT CHAIRMAN OF A COALITION OF MEDIA ADVERTISING AND MANUFACTURING COMPANIES SEEKING WAYS TO PROTECT BIGBRAND EQUITY BUT HOW TO DO SO WHEN CUSTOMERS AREN'T EXACTLY AN EAGER AUDIENCE PEOPLE HAVE BECOME STREETWISE CONSUMERS AND THEIR TOLERANCE FOR HYPE IS NOW GREATLY REDUCED FRETS JIM TAYLOR CHIEF EXECUTIVE OFFICER AND MANAGING PARTNER OF YANKELOVICH PARTNERS BOTH MR TAYLOR AND MR LIGHT PRESIDENT OF THE CONSULTING FIRM ARCATURE WERE SLATED TO BROACH SUCH TOPICS IN PRESENTATIONS TO THE CONVENTION THIS MORNING THE FOUR A'S ITSELF ADMITS THAT AD AGENCIES MUST STEP BACK AND REEXAMINE WHAT IT TAKES TO WIN IN A CHANGING ENVIRONMENT AND RESELL THE ROLE OF ADVERTISING APPARENTLY AD EXECUTIVES ARE IN A MOOD TO LISTEN ATTENDANCE AT THE CONVENTION IS UP 9 TO 446 EXECUTIVES OVER LAST YEAR ALTHOUGH IT IS STILL A PALTRY TURNOUT COMPARED WITH THE 1981 HIGH OF MORE THAN 800 OF COURSE THIS IS A CONVENTION AND LEISURE ABOUNDS TODAY FOR INSTANCE ATTENDEES MUST ENDURE ONLY HALF A DAY OF SERIOUS BUSINESS WITH THE AFTERNOON RESERVED FOR GOLF TENNIS A SAILBOAT TRIP AND AN ART GALLERY TOUR THOSE EXECS EXPECTING ANY LETUP IN THE DOWNBEAT FEEL HOWEVER MAY BE DISAPPOINTED CONSIDER THIS BROADSIDE FROM ONE OF THEIR OWN A LOT OF CREATIVE PEOPLE HAVE DEVELOPED A DISENCHANTMENT WITH THE BUSINESS ADVERTISING HAS BECOME LESS PERSONAL AND MORE FINANCIALLY DRIVEN THEREFORE CREATIVE PEOPLE HAVE BECOME A LOT LESS ATTACHED TO THEIR BRANDS THE SPEAKER MARCIO MOREIRA VICE CHAIRMAN AND CHIEF CREATIVE OFFICER AT MCCANNERICKSON THE AGENCY ON THE COVETED COKE ACCOUNT WHICH JUST HAD ITS CREATIVE CLOCK CLEANED BY HOLLYWOOD TALENT AGENT MICHAEL OVITZ MCCANN A UNIT OF INTERPUBLIC GROUP HAS LOST VIRTUALLY ALL CREATIVE CONTROL OVER THE COKE BUSINESS TO MR OVITZ'S CREATIVE ARTISTS AGENCY YET MR MOREIRA IS SCHEDULED TO ADDRESS THE ISSUE OF CREATIVITY AND THE LACK OF IT IN A BREAKFAST DISCUSSION HERE TOMORROW JOINING HIM TO BREAK BREAD AND BASH EGOS WILL BE ONE OTHER INSIDER CRITIC KEN MANDELBAUM CHIEF EXECUTIVE OFFICER OF MANDELBAUM MOONEY ASHLEY THE INDUSTRY NEEDS A PERIOD OF CREATIVE REJUVENATION DECLARES DONNY DEUTSCH EXECUTIVE VICE PRESIDENT AND CREATIVE DIRECTOR OF DEUTSCH/DWORIN AND WHOSE APPEARANCE HERE WAS CANCELED AT THE LAST MOMENT THE EMERGENCE OF HOLLYWOOD'S MR OVITZ SENT CHILLS ALONG MADISON AVENUE BECAUSE SOME AGENCIES HAVE STOPPED CREATIVE THINKING HE ADDS NOT HIS OF COURSE OR OTHER SMALL OUTFITS LIKE WIEDEN & KENNEDY AND AMMIRATI & PURIS HE SAYS IT'S THE BIG GUYS HAD COKE GONE TO A SMALLER AGENCY INSTEAD OF HIRING MR OVITZ'S CAA WITH ITS ROSTER OF WELLKNOWN FILM DIRECTORS SUCH AS ROB REINER THEN YOU WOULD HAVE SEEN GREAT CREATIVE WORK WITH STRATEGIC UNDERPINNING MR DEUTSCH MAINTAINS AT THE MOMENT HE SAYS CAA HAS CHURNED OUT TWO DOZEN OR SO EXPERTLY DIRECTED COKE COMMERCIALS BUT IT HAS NO MARKETING PLAN THAT IS A COMMON SNIPE LEVELED BY AD AGENCIES AND CAA HAS CONSISTENTLY BRUSHED IT OFF SMALLER SHOPS UNENCUMBERED BY WHEEZING BUREAUCRACIES ARE THE WAVE OF THE FUTURE MR DEUTSCH BOASTS THEN AGAIN HOW SMALL IS SMALL HIS MIDSIZE FIRM IS ALREADY UP TO 135 MILLION IN BILLINGS AND 120 EMPLOYEES WORKING AWAY ON A CLIENT ROSTER THAT INCLUDES IKEA FURNITURE SIX FLAGS THEME PARKS WITH THOSE NASTY COMMERCIALS THAT OFFEND MICKEY MOUSE AND A G HEILMAN BREWING BRAND OF BEER MR MANDELBAUM RUNS A TRULY SMALL SHOP IN SAN FRANCISCO WITH A CREW OF JUST 18 AND ANNUAL BILLINGS OF 30 MILLION HIS COMPLAINT AGENCIES ARE CHOKING ONE ANOTHER BECAUSE OVER THE YEARS THE INDUSTRY HAS SHOWN THAT IT WILL DO ANYTHING TO GET A CLIENT FOR INSTANCE HE SAYS AMMIRATI & PURIS WAS PRAISED BY PEERS WHEN IT RESIGNED IN PROTEST WHEN CLIENT BMW OF NORTH AMERICA PUT AN 80 MILLIONPLUS ACCOUNT UP FOR REVIEW LAST FALL BUT WHAT GOOD DID IT DO ASKS MR MANDELBAUM OTHER AGENCIES STUMBLED OVER THEMSELVES TO GET THE BUSINESS IT WAS AWARDED TO MULLEN ADVERTISING A SMALL FIRM OUTSIDE OF BOSTON IN FEBRUARY AMMIRATI'S MESSAGE WAS ESSENTIALLY LOST AS EACH AGENCY SPENT OVER 500000 TO PITCH THE ACCOUNT AND WERE WILLING TO TAKE A FEE THAT MADE NO SENSE TO AMMIRATI IN THE FIRST PLACE MR MANDELBAUM COMPLAINS AGENCIES BEHAVE IRRATIONALLY AND AS LONG AS THEY DO SO THE CLIENT WILL BE IN THE DRIVER'S SEAT TO WHICH A CLIENT MIGHT ADD THAT'S THE WAY IT'S SUPPOSED TO BE ACCOUNT GERBER PRODUCTS CO FREMONT MICH TAPPED THE WARSAW OFFICE OF D'ARCY MASIUS BENTON & BOWLES FOR CENTRAL EUROPEAN ADVERTISING INCLUDING A NEW TELEVISION AND PRINT CAMPAIGN PLANNED FOR POLAND HUNGARY AND THE CZECH AND SLOVAK REPUBLICS BILLINGS COULDN'T BE DETERMINED 9304220107 930422 AMR REPORTS SMALLER LOSS THAN EXPECTED FIRSTQUARTER RESULTS POINT TO INDUSTRY COMEBACK STOCK PRICE SOARS 92 BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL AMR CORP POSTED A SMALLERTHANEXPECTED FIRSTQUARTER LOSS AND SOUTHWEST AIRLINES POSTED A SHARPLY HIGHER PROFIT AMID SIGNS THAT THE INDUSTRY MAY BE HEADED TOWARD A LONGAWAITED COMEBACK DEFINITELY THE INDUSTRY IS SEEING BETTER DOMESTIC TRENDS THE ONLY THING IS THE MAGNITUDE OF THE RECOVERY SAID PAUL KAROS AN AIRLINE ANALYST WITH FIRST BOSTON CORP EXPECTATIONS THAT A RECOVERY IS UNDER WAY PUSHED MOST AIRLINE STOCKS HIGHER WITH UAL CORP LEADING THE WAY RISING 9625 TO CLOSE AT 149625 AND DELTA AIR LINES INCREASING 2875 TO CLOSE AT 59375 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE PARENT OF AMERICAN AIRLINES HAD A NET LOSS OF 22 MILLION OR 43 CENTS A SHARE ON REVENUE OF 381 BILLION AMR'S NARROW LOSS CONSENSUS ESTIMATES BY WALL STREET ANALYSTS HAD BEEN A 1ASHARE LOSS AND THE COMPANY'S PROJECTIONS FOR AN IMPROVED SECOND QUARTER SENT AMR'S STOCK SOARING YESTERDAY IT CLOSED AT 7125 UP 6 OR 92 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING IN THE YEAREARLIER PERIOD AMR HAD NET INCOME OF 8 MILLION OR 10 CENTS A SHARE ON REVENUE OF 304 BILLION BUT THE COMPANY LATER RESTATED ITS 1992 RESULTS TO INCLUDE AN ACCOUNTING CHANGE REGARDING POSTRETIREMENT BENEFITS RESULTING IN A FIRSTQUARTER LOSS OF 452 MILLION OR 625 A SHARE MUCH OF AMR'S IMPROVEMENT COMES BECAUSE OF AGGRESSIVE COSTCUTTING MOVES AND CAPACITY CUTBACKS AMERICAN SLASHED 300 MILLION IN COSTS FROM ITS 1993 BUDGET AND PLANS TO GROUND 25 DC10 WIDEBODIES AND FURLOUGH AS MANY AS 600 PILOTS AND 450 MECHANICS BEFORE YEAR'S END THAT LEAVES THE AIRLINE IN GOOD SHAPE TO TAKE ADVANTAGE OF THE RECENT UPTURN IN DOMESTIC TRAFFIC REALLY WHY THE MARKET'S GOING NUTS IS THIS COMPANY THE WAY IT'S POSITIONED RIGHT NOW IS LOOKING TO BE FINANCIALLY SELFSUFFICIENT SAID KEVIN MURPHY AN AIRLINE ANALYST WITH MORGAN STANLEY THESE RESULTS APPEAR TO SHOW THAT THIS IS THE FIRST MAJOR CARRIER TO HANDLE THAT THEIR GAME PLAN IS ON TRACK MESSRS KAROS AND MURPHY BOTH SAID IT'S HARD TO TELL IF THIS IS AN INDUSTRYWIDE TREND OR WHETHER AMR HAS SIMPLY BROKEN AWAY FROM THE PACK UNTIL MORE AIRLINES REPORT THEIR QUARTERLY RESULTS AND THOSE EXPECTED LOSSES COME IN SMALLER THAN EXPECTED TOO DELTA AIR LINES IS EXPECTED TO REPORT ITS RESULTS TODAY AND UAL CORP NEXT WEEK USAIR GROUP INC AND NORTHWEST AIRLINES TUESDAY REPORTED NARROWER LOSSES THE AIRLINE INDUSTRY IS COMING OFF OF NEARLY THREE YEARS OF RECORD LOSSES CAUSED BY A LINGERING RECESSION A FALLOFF IN TRAFFIC AND LAST YEAR ESPECIALLY STEEP FARE CUTS FARES HAVE STABILIZED LATELY AND DOMESTIC TRAFFIC HAS IMPROVED AS AN IMPROVING ECONOMY AT LAST SEEMS TO BE INCLUDING THE AIRLINE INDUSTRY IN A CONFERENCE CALL WITH REPORTERS AMERICAN'S CHIEF FINANCIAL OFFICER MICHAEL J DURHAM SAID THAT THE COMPANY EXPECTED THE POSITIVE TRENDS TO CONTINUE INTO THE SECOND QUARTER THE EXCEPTION IS AMERICAN'S INTERNATIONAL DIVISION WHERE TRAFFIC AND REVENUE IS DOWN BECAUSE OF THE EUROPEAN RECESSION AND TRANSATLANTIC FARE CUTS MR DURHAM SAID HE DIDN'T HAVE EXACT FIGURES BUT HE BELIEVES AMERICAN POSTED LOSSES ON ITS EUROPEAN ROUTES IN THE FIRST QUARTER AND THAT PROFITABILITY ON LATIN AMERICAN ROUTES WAS DOWN DOMESTICALLY HOWEVER HE SAID BOOKINGS ALREADY WERE UP FROM LAST YEAR EVEN BEFORE THE 35OFF FARE CUTS ANNOUNCED BY NORTHWEST AIRLINES EARLIER THIS WEEK WHICH HAVE SINCE BEEN MATCHED BY THE REST OF THE INDUSTRY UNLIKE LAST YEAR'S SUMMERLONG CUTS OF 50 THESE REDUCTIONS ARE MORE IN LINE WITH SEASONAL CUTS AND WHILE THE PROMOTION IS CURRENTLY SCHEDULED TO EXPIRE TOMORROW MR DURHAM SAID HE WON'T BE SURPRISED IF IT'S EXTENDED FURTHER GENERALLY IT'S NOT A BAD FARE FOR THE SUMMER PERIOD HE SAID IF THAT'S THE CASE WE'LL ANTICIPATE SOME FAIRLY SUBSTANTIAL IMPROVEMENTS FOR THE SECOND QUARTER AND THIRD QUARTER WHICH WILL BE VERY GOOD INDEED FROM THE PERSPECTIVE OF MUCHNEEDED PROFITABILITY HE WAS QUICK TO POINT OUT HOWEVER THAT THE IMPROVED OUTLOOK DOESN'T CHANGE THE UNDERLYING WEAKNESS IN THE AIRLINE INDUSTRY AND THAT AMR IS CONTINUING TO PURSUE ITS TRANSITION PLAN WHICH CALLS FOR IT TO PULL OUT OF MONEYLOSING ROUTES AND CONCENTRATE ON ITS LARGER HUBS AS FOR SOUTHWEST IT POSTED A SHARPLY HIGHER FIRSTQUARTER PROFIT OF 379 MILLION OR 40 CENTS A SHARE ON REVENUE OF 4538 MILLION WHILE A 21 RISE IN THE DALLAS CARRIER'S PASSENGER REVENUE WAS THE CHIEF REASON BEHIND THE INCREASE AN ACCOUNTING CHANGE ALSO BOOSTED NET INCOME BY 153 MILLION OR 16 CENTS A SHARE IN THE YEAREARLIER PERIOD AMR BASED IN FORT WORTH TEXAS HAD NET INCOME OF 8 MILLION OR 10 CENTS A SHARE ON REVENUE OF 304 BILLION BUT THE COMPANY LATER RESTATED ITS 1992 RESULTS TO INCLUDE AN ACCOUNTING CHANGE REGARDING POSTRETIREMENT BENEFITS RESULTING IN A FIRSTQUARTER LOSS OF 452 MILLION OR 625 A SHARE TO SOUTHWEST'S NET INCOME 9304220106 930422 GRUMMAN TO BUY BACK STOCK BETHPAGE NY GRUMMAN CORP SAID IT PLANS TO PURCHASE UP TO 100 MILLION OF ITS COMMON STOCK FROM TIME TO TIME ON THE OPEN MARKET OR IN PRIVATE TRANSACTIONS A GRUMMAN SPOKESMAN SAID THE COMPANY HAS A CONSIDERABLE AMOUNT OF CASH AND PLANS TO RETURN SOME OF IT TO SHAREHOLDERS THE AEROSPACE AND ELECTRONICSYSTEMS CONCERN SAID IT HAS ALREADY USED SOME OF ITS CASH TO PAY DOWN DEBT AND RAISE THE DIVIDEND LAST WEEK THE QUARTERLY PAYOUT WAS RAISED 20 TO 30 CENTS FROM 25 CENTS THE REPURCHASE WILL LEAVE GRUMMAN WITH ENOUGH FLEXIBILITY TO MAKE ACQUISITIONS IF IT CHOOSES TO DO SO THE SPOKESMAN SAID THE COMPANY HAS ABOUT 338 MILLION SHARES OUTSTANDING GRUMMAN SHARES WERE QUOTED AT 36375 DOWN 1375 IN LATE NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9304220105 930422 TECHNOLOGY & MEDICINE FIRST TRANSMISSION OF AZTRESISTANT HIV IS REPORTED BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL A TEAM OF RESEARCHERS IN MINNEAPOLIS REPORTED THE FIRST DOCUMENTED CASE OF A PERSON INFECTED BY A STRAIN OF THE AIDS VIRUS THAT WAS ALREADY RESISTANT TO THE STAPLE DRUG AZT THE FINDING PROMISES TO SHAKE UP THE CURRENT STRATEGY OF EARLY TREATMENT WITH AZT THE WELLCOME PLC DRUG A MAINSTAY IN THE FIGHT AGAINST AIDS IS OFTEN GIVEN TO INFECTED PEOPLE EVEN BEFORE AIDS SYMPTOMS APPEAR SCIENTISTS HAVE KNOWN FOR YEARS THAT SWIFT MUTATION OF HIV THE VIRUS THAT CAUSES AIDS ENABLES IT TO EVADE AZT HOWEVER THE ABILITY OF PATIENTS TO TRANSMIT SUCH VIRUSES TO OTHERS HAD NEVER BEEN PROVEN UNTIL TODAY'S REPORT IN THE NEW ENGLAND JOURNAL OF MEDICINE BY ALEJO ERICE AND HENRY H BALFOUR JR AT THE UNIVERSITY OF MINNESOTA MEDICAL SCHOOL AIDS EXPERTS TERMED THE DISCOVERY UNSURPRISING BUT EXTREMELY SOBERING GIVEN THE THOUSANDS OF PATIENTS WHO CURRENTLY RECEIVE AZT DETECTION OF THE TRANSMISSION OF AN AZTRESISTANT STRAIN OF HIV IS ALARMING AND MAY HAVE IMPORTANT CONSEQUENCES FOR TREATMENT STRATEGIES SAID DANIEL HOTH WHO HEADS THE DIVISION OF AIDS AT THE NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES IT'S NOT UNEXPECTED BUT IT HAS TO RAISE VERY IMPORTANT QUESTIONS ABOUT THE USE OF AZT DR HOTH ADDED NOW IT'S POSSIBLE THAT ITS USE MAY NOT ONLY AFFECT THOSE WHO ARE TREATED BUT OTHERS AS WELL DR HOTH WHO HEADS A STUDY GIVING ANTIVIRAL TREATMENT TO NEWLY INFECTED PEOPLE ADDED THAT THE MINNEAPOLIS REPORT MEANS ALL SUCH PATIENTS SHOULD HAVE THEIR VIRUS GENETICALLY ANALYZED TO SEE WHETHER THE DRUGRESISTANT MUTANT IS PRESENT DRS ERICE AND BALFOUR AND THEIR COLLABORATORS AT WALTER REED ARMY MEDICAL CENTER IN WASHINGTON SAID THE SINGLE PATIENT IN THEIR STUDY WAS A 20YEAROLD MAN WHO HAD PREVIOUSLY TESTED NEGATIVE FOR HIV WHILE IN THE ARMY UPON DEVELOPING FEVER RASH AND SWOLLEN LYMPH GLANDS EARLY SYMPTOMS OF HIV INFECTION THE PATIENT TESTED POSITIVE FOR THE VIRUS ONE OF HIS RECENT SEXUAL PARTNERS WAS HIVINFECTED AND RECEIVING AZT AFTER DOCTORS DISCOVERED HIS VIRUS WAS AZTRESISTANT THE STUDY PATIENT SWITCHED FROM AZT TO THE BRISTOLMYERS SQUIBB CO DRUG DIDANOSINE OR DDI THE MINNEAPOLIS STUDY IS THE SECOND REPORT WITHIN A MONTH TO QUESTION THE WISDOM OF EARLY TREATMENT IN THE SOCALLED CONCORDE STUDY FRENCH AND UK RESEARCHERS RECENTLY REPORTED PATIENTS WITHOUT SYMPTOMS FARED NO BETTER THAN THOSE WHO DIDN'T BEGIN TREATMENT UNTIL THEY HAD FULLBLOWN AIDS IN RESEARCH TRIANGLE PARK NC A TOP EXECUTIVE OF WELLCOME'S US UNIT SAID THE MINNEAPOLIS REPORT ISN'T A SURPRISE DAVID BARRY SENIOR VICE PRESIDENT OF RESEARCH DEVELOPMENT AND MEDICAL AFFAIRS FOR BURROUGHS WELLCOME CO ADDED THAT THE REPORT MAKES THE CASE FOR CONSIDERING COMBINATION THERAPY IN EARLIER AND EARLIER STAGES OF DISEASE WE ALSO WANT TO EMPHASIZE TO PATIENTS THAT EVEN THOUGH YOU MAY BE ON TREATMENT YOU CAN STILL TRANSMIT SOME VIRUS AND SHOULD TAKE ALL PRECAUTIONS DR BARRY SAID 9304220104 930422 PROFIT AT UNITED TECHNOLOGIES DECLINES 31 BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL CITING SHARPLY REDUCED EARNINGS FROM ITS JET ENGINE UNIT UNITED TECHNOLOGIES CORP POSTED A 31 DECLINE IN FIRSTQUARTER PROFIT TO 64 MILLION OR 43 CENTS A SHARE CHAIRMAN ROBERT F DANIELL SAID US DEFENSE BUDGET REDUCTIONS AND THE CATASTROPHIC CONDITION OF THE AIRLINE INDUSTRY CONTINUE TO DEPRESS ENGINE DELIVERIES AND COMMERCIAL SPAREPARTS SALES HE SAID THE COMPANY'S RECENT RESTRUCTURING MOVES WHICH INCLUDE ADDITIONAL LAYOFFS AND PLANT CLOSINGS AT PRATT & WHITNEY THE JET ENGINE UNIT WILL LEAD TO A SIGNIFICANT IMPROVEMENT IN THE UNIT'S COST STRUCTURE IN AN INTERVIEW MR DANIELL REITERATED HIS EARLIER PROJECTION THAT THE COMPANY WILL EXPERIENCE A WEAK FIRST HALF AND THEN AN UPTURN IN RESULTS HE REAFFIRMED HIS EARNINGS ESTIMATE OF EARLIER THIS YEAR THAT THE COMPANY'S 1993 PROFIT WILL BE IN THE RANGE OF THE 322 A SHARE IT REPORTED FOR LAST YEAR BEFORE A ONETIME CHARGE RELATED TO POSTRETIREMENT BENEFITS THE PROFIT ANNOUNCED AFTER THE TRADING ENDED FELL BELOW THE CONSENSUS ESTIMATE OF 46 CENTS A SHARE COMPILED BY ZACKS INVESTMENT RESEARCH BUT MR DANIELL DISPUTED THE NUMBER AND SAID ESTIMATES FROM THE ANALYSTS THE COMPANY SURVEYED RANGED BETWEEN 30 AND 35 CENTS A SHARE IN THE 1992 FIRST QUARTER THE HARTFORD CONN COMPANY EARNED 94 MILLION OR 68 CENTS A SHARE BEFORE ACCOUNTING CHANGES RELATED TO INCOME TAX AND POSTRETIREMENT BENEFITS WITH THE CHANGES IT HAD A LOSS OF 228 MILLION OR 195 A SHARE REVENUE IN THE LATEST PERIOD FELL 58 TO 49 BILLION THE COMPANY'S AUTOMOTIVE UNIT EARNED 37 MILLION UP FROM 13 MILLION A YEAR EARLIER THE COMPANY'S FLIGHT SYSTEMS UNIT HAD A PROFIT OF 82 MILLION UP FROM 40 MILLION IT ATTRIBUTED THE INCREASE LARGELY TO HIGHER SHIPMENTS OF BLACK HAWK HELICOPTERS TO TURKEY CARRIER WHICH MAKES AIR CONDITIONING AND HEATING SYSTEMS DOUBLED ITS PROFIT TO 8 MILLION PRATT & WHITNEY THE JET ENGINE UNIT EARNED 13 MILLION IN THE FIRST QUARTER DOWN 91 FROM 151 MILLION A YEAR EARLIER IT SHIPPED 61 FEWER LARGE ENGINES THAN IN THE FIRST QUARTER OF LAST YEAR A 31 DROP AND COMMERCIAL SPAREPARTS SALES IN THE FIRST QUARTER AVERAGED 94 MILLION A MONTH COMPARED WITH 154 MILLION A MONTH A YEAR EARLIER MR DANIELL THE CHAIRMAN SAID THE DECLINING TREND IN THIS SEGMENT OF THE BUSINESS MAY BE REVERSING HE SAID THAT AFTER TWO EXCEPTIONALLY LOW QUARTERS FOR ORDERS AT THE END OF LAST YEAR SPAREPARTS ORDERS HAVE IMPROVED IN THE CURRENT QUARTER HE ESTIMATED THAT SPAREPARTS SALES THIS YEAR WILL REACH 13 BILLION NOT TOO FAR OFF FROM THE 155 BILLION IN 1992 9304220103 930422 FRENCH BANK TO OFFER ADRS PARIS FRENCH LENDER SOCIETE GENERALE PLANS TO OFFER AMERICAN DEPOSITARY RECEIPTS TO US INVESTORS STARTING IN JULY A BANK SPOKESMAN SAID THE SPOKESMAN SAID AN ADR LISTING WOULDN'T BE ACCOMPANIED BY THE CREATION OF NEW SHARES THUS SOCIETE GENERALE WON'T BE REQUIRED TO ADOPT SOCALLED FULL REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION WHICH WOULD MEAN COSTLY ADJUSTMENT OF ACCOUNTING PRINCIPLES TO US NORMS WHILE IT WOULD BE THE FIRST FRENCH BANK WITH ADRS IN THE US SOCIETE GENERALE FOLLOWS THE LEAD OF FRENCH INDUSTRIALISTS TO THE ADR MARKET AN ADR IS A CERTIFICATE THAT ALLOWS US INVESTORS TO PURCHASE STOCKS LISTED ABROAD 9304220102 930422 LAW APPEALS COURT BACKS A LIMITED USE OF KLAN LAW IN ANTIABORTION PROTESTS BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A CENTURYOLD LAW DESIGNED TO FIGHT THE KU KLUX KLAN MAY STILL BE A VIABLE MEANS OF PREVENTING PROTESTERS FROM BLOCKADING ABORTION CLINICS A FEDERAL APPEALS COURT HERE RULED THE DECISION BY THE SECOND US CIRCUIT COURT OF APPEALS CAME DESPITE A RECENT US SUPREME COURT RULING THAT HAD SEEMED TO ESTABLISH THAT THE SOCALLED KU KLUX KLAN ACT DID NOT APPLY TO ANTIABORTION GROUPS LAWYERS ON BOTH SIDES OF THE CASE SAID YESTERDAY'S SECOND CIRCUIT DECISION CAUGHT THEM BY SURPRISE AND THAT IT MIGHT TRIGGER A REHEARING BY THE SUPREME COURT ON THE ISSUE THAT THE JUSTICES DECIDED IN JANUARY BY A 54 VOTE THE APPEALS COURT PANEL THAT MADE THE 30 RULING INCLUDED JUDGE AMALYA KEARSE THOUGH SHE DIDN'T WRITE THE PANEL'S OPINION JUDGE KEARSE IS OFTEN MENTIONED AS A CANDIDATE TO SUCCEED RETIRING JUSTICE BYRON WHITE WHO VOTED WITH THE SLIM SUPREME COURT MAJORITY AGAINST USE OF THE KU KLUX KLAN ACT THE LAW PROHIBITS CONSPIRACIES MOTIVATED BY HATRED TO DEPRIVE PEOPLE OF THEIR CONSTITUTIONAL RIGHTS THE NEW YORK FEDERAL APPEALS COURT'S DECISION CAME IN A CASE INVOLVING A LONGSTANDING INJUNCTION PROHIBITING OPERATION RESCUE THE ANTIABORTION GROUP FROM BLOCKADING THE SUMMIT WOMEN'S CENTER WEST INC IN WEST HARTFORD CONN IN LIGHT OF THE RECENT SUPREME COURT RULING BRAY VS ALEXANDRIA THE APPEALS COURT LIFTED THE INJUNCTION AGAINST OPERATION RESCUE BUT THE SECOND CIRCUIT ALSO SAID THAT THE SUPREME COURT DECISION RATHER THAN ABSOLUTELY BARRING THE USE OF THE KU KLUX KLAN ACT AGAINST ANTIABORTION GROUPS MERELY SET A HIGHER STANDARD OF PROOF THE SECOND CIRCUIT SENT THE CASE BACK TO THE TRIAL JUDGE IN CONNECTICUT FOR A NEW HEARING ON WHETHER THAT STANDARD OF PROOF HAD BEEN MET IN THE WEST HARTFORD CASE THE PROOF ISSUE INVOLVES THE QUESTION OF WHETHER ANTIABORTION PROTESTERS SHOW THE KIND OF ANIMUS TOWARD WOMEN THAT THE KU KLUX KLAN AIMS AT BLACKS IN THE BRAY DECISION THE SUPREME COURT RULED THAT THE KLAN LAW DIDN'T APPLY BECAUSE THERE WAS NO EVIDENCE OF SUCH ANIMUS IN THE ABORTIONCLINIC CASE BUT THE APPEALS COURT DECISION SAID THE SUPREME COURT MADE ITS RULING BASED ONLY ON THE FACTS IN THE BRAY CASE AND DIDN'T MEAN THAT THE NECESSARY ANIMUS COULD NEVER BE PROVEN IN A CLINIC CASE THE APPEALS COURT SAID THE SUMMIT HEALTH CLINIC SHOULD BE GIVEN A CHANCE TO SHOW THAT OPERATION RESCUE DOES IN FACT SHOW ANIMUS TOWARD WOMEN EVEN IF THE TRIAL JUDGE DOESN'T MAKE THIS FINDING THE SECOND CIRCUIT RULING IS CONSIDERED IMPORTANT BY LAWYERS INVOLVED IN SUCH CASES BECAUSE IT KEEPS THE FEDERAL COURTS OPEN TO ABORTION CLINICS FACING BLOCKADES FEDERAL JUDGES TYPICALLY HAVE MORE POWER TO ENFORCE INJUNCTIONS THAN DO STATE JUDGES JON L SCHOENHORN AN ATTORNEY IN HARTFORD WHO REPRESENTED THE CLINIC CALLED THE DECISION A SURPRISING VICTORY HE SAID THAT SINCE BRAY ABORTION CLINICS HAD VIEWED FEDERAL CIVIL RIGHTS CLAIMS SUCH AS THOSE MADE UNDER THE KU KLUX KLAN LAW AS A LOST CAUSE INSTEAD ABORTION CLINICS ARE COMING TO RELY ON STATE LAWS SUCH AS THOSE AGAINST TRESPASSING AND STALKING TO LIMIT BLOCKADES MR SCHOENHORN SAID FOR EXAMPLE COLORADO ENACTED A LAW THIS WEEK TO PROVIDE AN EIGHTFOOT BUBBLE OF PROTECTION FOR PEOPLE ENTERING OR LEAVING ABORTION CLINICS THE MEASURE SIGNED MONDAY BY GOV ROY ROMER IS THE FIRST STATE LAW OF ITS KIND IN THE NATION IT BARS DEMONSTRATORS FROM COMING WITHIN EIGHT FEET OF VISITORS OR WORKERS OUTSIDE ABORTION CLINICS OPERATION RESCUE HAS ALREADY SAID IT WILL CHALLENGE THE LAW IN COURT VINCENT P MCCARTHY AN ATTORNEY IN NEW MILFORD CONN WHO REPRESENTED OPERATION RESCUE AND RANDALL TERRY ITS LEADER IN THE WEST HARTFORD CASE SAID HE PLANS TO APPEAL THE SECOND CIRCUIT DECISION HE SAID THE SECOND CIRCUIT WAS ATTEMPTING TO REVIVE AN EARLIER RULING IT HAD MADE THAT STRONGLY BACKED THE USE OF THE KU KLUX KLAN LAW AGAINST ANTIABORTION GROUPS THAT DECISION WAS WRITTEN BY JUDGE KEARSE WEST HARTFORD VS OPERATION RESCUE US COURT OF APPEALS NEW YORK 927595 9304220101 930422 TECHNOLOGY & MEDICINE COMPAQ NET SOARS BUT STOCK DECLINES ON MARGIN WORRY BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL COMPAQ COMPUTER CORP CONTINUING TO GOBBLE UP MARKET SHARE IN THE PERSONAL COMPUTER BUSINESS SAID ITS PROFIT AND REVENUE MORE THAN DOUBLED IN THE FIRST QUARTER THOSE GAINS THOUGH WERE ALL BUT OVERSHADOWED ON WALL STREET BY CONCERNS ABOUT A SLIPPING GROSS PROFIT MARGIN AT COMPAQ AND FEARS AMONG ANALYSTS THAT THE RECENT PERSONAL COMPUTING BOOM MAY BE QUIETING DOWN COMPAQ'S STOCK DROPPED 1875 TO 4925 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING WHILE MANY ANALYSTS RAISED THEIR COMPAQ EARNINGS ESTIMATES AS A RESULT OF A LOWER TAX RATE AND THE MOST RECENT QUARTERLY NUMBERS MOST SAID THEY WERE WORRIED THAT TIGHT MARGINS COULD BECOME A PROBLEM THROUGHOUT THE PERSONAL COMPUTER BUSINESS AST RESEARCH INC AND APPLE COMPUTER INC ALREADY HAVE REPORTED LOWER GROSS MARGINS SHARES OF DELL COMPUTER CORP FELL 2625 TO 28625 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY ON FEARS OF WHAT THE COMPANY MIGHT SAY ABOUT ITS MARGINS DURING AN ANALYSTS' MEETING SCHEDULED FOR TODAY IN AUSTIN TEXAS IT'S THE LARGEST QUESTION MARK IN MY MIND RIGHT NOW SAID KEVIN A MCCARTHY A PERSONAL COMPUTER ANALYST AT MABON SECURITIES IN NEW YORK THIS IS WHAT IS CONCERNING EVERYBODY COMPAQ'S PROFIT MARGIN FELL TO 23 AT THE END OF THE FIRST QUARTER DOWN FROM 269 AT THE END OF 1992 AND 335 DURING THE SAME PERIOD A YEAR AGO THE COMPANY BLAMED THE DROP ON INTERNATIONAL CURRENCY FLUCTUATIONS AND ON THE CONTINUING PRESSURES OF AN INDUSTRY PRICE WAR THAT HAS RAGED FOR MOST OF THE PAST YEAR THIS MARGIN THING IS GETTING UGLY ABSOLUTELY ABYSMAL SAID JAMES POYNER AN ANALYST AT RAUSCHER PIERCE REFSNES IN DALLAS COMPAQ'S MARKET SHARE GAINS ARE BECOMING AN INCREASINGLY PYRRHIC VICTORY COMPAQ OFFICIALS IN AN UNUSUAL TWOHOUR CONFERENCE CALL WITH ANALYSTS SOUGHT TO PLAY DOWN THE MARGIN ISSUE THE EXECUTIVES NOTED THAT THE NUMBER OF COMPUTERS SHIPPED BY COMPAQ TRIPLED DURING THE PERIOD EVEN AS THE SIZE OF THE COMPANY'S WORK FORCE REMAIN UNCHANGED IN ADDITION COMPAQ NOTED THAT THE SALES INCREASES FAR OUTSTRIPPED THE GROWTH OF THE WORLD PC MARKET MEANING THAT THE COMPANY IS TAKING BUSINESS AWAY FROM ITS COMPETITORS COMPAQ PROJECTS WORLDWIDE UNIT SHIPMENTS FOR THE INDUSTRY WILL GROW BY ABOUT 13 THIS YEAR INCLUDING A 15 JUMP IN THE US I THINK IT'S A HELL OF A GOOD STORY ECKHARD PFEIFFER COMPAQ'S CHIEF EXECUTIVE SAID IN AN INTERVIEW THE GROWTH IS PHENOMENAL COMPAQ REPORTED FIRSTQUARTER NET INCOME OF 102 MILLION OR 123 A SHARE UP FROM 45 MILLION OR 53 CENTS A SHARE A YEAR EARLIER REVENUE SOARED TO 16 BILLION UP 106 FROM 783 MILLION IN THE 1992 QUARTER THE COMPANY NOTED THAT ITS RESULTS INCLUDED A DROP IN ITS TAX RATE TO 24 FROM 33 AS A RESULT OF CHANGES IN COMPAQ'S OVERSEAS INVESTMENT STRATEGY 9304220100 930407 LEISURE & ARTS BOOKSHELF STORIES OF SUFFERING IN SADDAM'S IRAQ BY GERALDINE BROOKS KANAN MAKIYA'S NEW BOOK SHOULD BE REQUIRED READING IN A CLINTON STATE DEPARTMENT THAT SEEMS ABOUT TO REPEAT THE LETHAL FOLLY OF ITS PREDECESSORS BY SOFTPEDDLING US POLICY TOWARD IRAQ CRUELTY AND SILENCE WAR TYRANNY UPRISING AND THE ARAB WORLD NORTON 367 PAGES 2295 IS REALLY TWO RELATED BOOKS THE FIRST BEAUTIFULLY WRITTEN AND METICULOUSLY RESEARCHED UNCOVERS YET MORE OF IRAQ'S SECRET HISTORY OF CRUELTY THE SECOND IS A PASSIONATELY ARGUED CRITIQUE OF ARAB INTELLECTUALS' SILENCE IN THE FACE OF THIS CRUELTY A SILENCE MR MAKIYA CHARACTERIZES AS A VAST MORAL FAILURE OF DEVASTATING CONSEQUENCES FOR THE ARAB WORLD TAKEN TOGETHER THE ESSAYS COMBINE TO MAKE CRUELTY AND SILENCE ONE OF THE MOST IMPORTANT BOOKS EVER WRITTEN ON THE STATE OF THE MODERN MIDDLE EAST MR MAKIYA'S PREVIOUS BOOK REPUBLIC OF FEAR WRITTEN IN 1986 AND PUBLISHED UNDER THE PSEUDONYM SAMIR ALKHALIL WAS THE FIRST DETAILED INDICTMENT OF THE TRUE NATURE OF SADDAM HUSSEIN'S IRAQ THIS TIME MR MAKIYA HIMSELF AN IRAQI SHIITE SET OUT TO DOCUMENT THE SHIITE UPRISING IN SOUTHERN IRAQ THAT IMMEDIATELY FOLLOWED THE GULF WAR CEASEFIRE SEEKING EYEWITNESSES AND DOCUMENTS HE FOUND HIMSELF TALKING NOT JUST TO IRAQI SHIITES BUT ALSO TO KUWAITIS AND KURDS PALESTINIANS AND BAGHDADI JEWS THE ACCOUNT BALLOONED BEYOND THE SHIITE UPRISING AND BECAME A CHRONICLE OF CRUELTIES PERPETRATED BEFORE DURING AND AFTER THE WAR IN IRAQ THEN MR MAKIYA TURNED TO HIS OWN MILIEU THE ARAB ACADEMICS AND AUTHORS WHO STUDIED IN THE WEST AND WENT ON TO OCCUPY POSITIONS AT SOME OF THE BEST UNIVERSITIES IN THE WORLD SUCH APOLOGISTS AS COLUMBIA'S EDWARD SAID OR THE NOVELIST ABDULRAHMAN MUNIF HE WRITES CHURN OUT INTELLIGENT NATIONALIST IDEOLOGY INIMICAL TO A GENUINE CONCERN FOR THE HUMAN RIGHTS OF OTHERS FAR BETTER THAN THE SADDAM HUSSEINS OF THIS WORLD THE EFFECT OF READING CRUELTY AND SILENCE IS TO BORROW EVELYN WAUGH'S SIMILE LIKE A BLOW EXPECTED REPEATED FALLING ON A BRUISE PAIN ACCUMULATES AS MR MAKIYA TELLS IRAQIS' STORIES OF SUFFERING FOR MR MAKIYA LARGER IDEAS ALWAYS HAVE THEIR SEEDS IN THE REALITY OF AN INDIVIDUAL'S EXPERIENCE TO ANALYZE THE HORROR OF SADDAM'S ANFAL MILITARY ASSAULT IN WHICH PERHAPS 182000 KURDS WERE MURDERED MR MAKIYA BEGINS WITH THE STORY OF ONE 10YEAROLD BOY TAIMOUR WHO MIRACULOUSLY SURVIVED BEING HERDED INTO A PIT AND SHOT ALONG WITH HIS FAMILY PATIENTLY MR MAKIYA ELICITS FROM THE BOY A SEARING DESCRIPTION OF THE MOMENT JUST AFTER THE FIRST BULLET SLAMMED INTO HIS SHOULDER WHEN HE CLAWED HIS WAY OUT OF WHAT WAS SOON TO BE A MASS GRAVE TO GRAB THE HAND OF HIS TORMENTOR FOR A SECOND THE SOLDIER NEAR TEARS SEEMED ABOUT TO RELENT BUT THEN A COHORT YELLED AT HIM TO THROW THE BOY BACK IN THE PIT AND HE COMPLIED HIS EXPOSE OF THE SHIITE UPRISING WHICH FLARED AND WAS EXTINGUISHED OUT OF SIGHT OF WESTERN WITNESSES IS FULL OF INDIVIDUAL NIGHTMARES FALAH ASKAR A MINOR POET WHOSE LIFE'S WORK HAS BEEN COMPOSING DOGGEREL IN SUPPORT OF SADDAM FALLS INTO THE HANDS OF THE INSURGENTS IN A VAIN ATTEMPT TO AVERT HIS EXECUTION HE SPENDS HIS LAST NIGHT ON EARTH FEVERISHLY COMPOSING POEMS IN PRAISE OF SHIITE MARTYRS SOON AFTER SADDAM'S TANKS ROLLED INTO THE REBELLIOUS CITIES DECORATED WITH THE WORDS NO MORE SHIITES AFTER TODAY IN PUTTING DOWN THE UPRISING IRAQI FORCES PUNISHED ADULT INSURGENTS FIRST THROUGH THEIR CHILDREN TO TORTURE AN INSURGENT HIDING OUT IN THE SHRINE OF ALI SOLDIERS FIND HIS INFANT SON AND FLING THE BABY TO HIS DEATH AGAINST THE MOSQUE WALL THE LOSSES WENT BEYOND HUMAN LIFE TO AN ATTACK ON THE SHIITES' ANCIENT RELIGIOUS HERITAGE LIBRARIES WERE TORCHED SOME CONTAINING EARLY ISLAMIC TEXTS YET TO BE STUDIED BY MODERN METHODS THROUGH ALL OF THIS THE ANFAL THE SUPPRESSION OF THE SHIITES THE ATTACKS ON SOME OF THE HOLIEST PLACES OF ISLAM THE ARAB WORLD'S MOST ESTEEMED INTELLECTUALS NEVER RALLIED TO DEFEND THEIR FELLOW ARABS AND MUSLIMS AS MR MAKIYA EXAMINES THIS DEAFENING SILENCE HE CONSIDERS THEN THOROUGHLY DEBUNKS THE MANY CONSPIRACY THEORIES SADDAM WAS TRAPPED BY THE US INTO OCCUPYING KUWAIT AND FORMULATIONS SADDAM IS THE ARAB BISMARCK ADVANCED BY SOME OF THE ARAB WORLD'S BEST MINDS DURING AND AFTER THE GULF CRISIS SILENCE HE WRITES IS A SYNONYM FOR THE DEATH OF COMPASSION IN THE ARAB WORLD SILENCE IS CHOOSING OSTRICHLIKE NOT TO KNOW WHAT ARAB IS DOING TO FELLOW ARAB ALL IN THE NAME OF A KNEEJERK ANTIWESTERNISM WHICH HAS TURNED INTO A DISEASE CRUELTY AND SILENCE IS BEING PUBLISHED SIMULTANEOUSLY IN ENGLISH ARABIC AND KURDISH REPUBLIC OF FEAR MR MAKIYA'S PREVIOUS BOOK DENOUNCED BY MANY SOCALLED EXPERTS BOTH ARAB AND NONARAB AS BIASED AND ONESIDED FAILED TO FIND AN ARABICLANGUAGE PUBLISHER RIGHT UP UNTIL THE INVASION OF KUWAIT IT WILL BE INTERESTING TO SEE WHICH ARAB COUNTRIES HAVE THE MORAL COURAGE TO ALLOW THE DISTRIBUTION OF THIS ONE MS BROOKS COVERED THE MIDDLE EAST FOR THE JOURNAL FROM 1987 THROUGH 1991 SEE RELATED LETTER LETTERS TO THE EDITOR WE AREN'T APOLOGISTS FOR ARAB TYRANNIES WSJ APRIL 22 1993 9304070128 9304220099 930422 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 AVCO FINANCIAL SERVICES INC 200 MILLION OF NOTES DUE MAY 1 1998 PRICED AS 5 1/2 S AT 99785 TO YIELD 555 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 052 PERCENTAGE POINT ABOVE THE TREASURY FIVEYEAR NOTE RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC AVCO FINANCIAL IS A UNIT OF TEXTRON INC CHESAPEAKE & POTOMAC TELEPHONE CO 250 MILLION OF DEBENTURES DUE MAY 1 2023 PRICED AS 715S AT 98541 TO YIELD 727 ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR 20 YEARS THE ISSUE WAS PRICED AT A SPREAD OF 054 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND THE ISSUE RATED DOUBLEA3 BY MOODY'S AND DOUBLEA BY S&P WAS WON BY DEALERS LED BY GOLDMAN SACHS & CO CHESAPEAKE & POTOMAC TELEPHONE IS A UNIT OF BELL ATLANTIC CORP CHESAPEAKE & POTOMAC TELEPHONE CO 200 MILLION OF DEBENTURES DUE MAY 1 2003 PRICED AS 6S AT 983 TO YIELD 6231 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WON BY DEALERS LED BY SALOMON BROTHERS INC WAS PRICED AT A SPREAD OF 038 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE THE ISSUE IS RATED DOUBLEA3 BY MOODY'S AND DOUBLEA BY S&P COMMONWEALTH EDISON CO 220 MILLION OF FIRST MORTGAGE BONDS DUE APRIL 15 2013 PRICED AS 7 5/8 S AT 9974 TO YIELD 765 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 09 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC DOSKOCIL COS 100 MILLION OF SENIOR SUBORDINATED NOTES DUE JULY 15 2000 PRICED AS 9 3/4 S AT 99625 TO YIELD 9829 ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR FIVE YEARS THE ISSUE WILL BE PRICED THROUGH DEALERS LED BY MERRILL LYNCH & CO THE NOTES ARE RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P EAGLE FOOD CENTERS INC 100 MILLION OF SENIOR NOTES DUE APRIL 15 2000 PRICED TO YIELD 8625 UNDERWRITERS FOR THE OFFERING ARE GOLDMAN SACHS & CO AND MERRILL LYNCH & CO FEDERAL EXPRESS CORP 100 MILLION OF NOTES DUE APRIL 15 1998 PRICED AS 6 1/4 S AT 9993 TO YIELD 6266 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE OFFERED THROUGH DEALERS LED BY MERRILL LYNCH & CO WAS PRICED AT A SPREAD OF 1225 PERCENTAGE POINTS ABOVE THE TREASURY FIVEYEAR NOTE THE ISSUE IS RATED BAA3 BY MOODY'S AND TRIPLEB BY S&P FEDERAL HOME LOAN BANKS 206 MILLION OF NOTES DUE APRIL 29 1998 PRICED AT PAR TO YIELD 525 ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 022 PERCENTAGE POINT ABOVE THE TREASURY FIVEYEAR NOTE THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO NATIONAL CITY CORP 125 MILLION OF SUBORDINATED NOTES DUE MAY 1 2003 PRICED AS 6 1/2 S AT 99 5/8 TO YIELD 6552 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 07 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE RATED SINGLEA1 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO SHAWMUT NATIONAL CORP 150 MILLION OF SUBORDINATED NOTES DUE APRIL 15 2003 PRICED AS 72S AT 998 TO YIELD 7228 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 1375 PERCENTAGE POINTS ABOVE THE TREASURY 10YEAR NOTE RATED BA1 BY MOODY'S AND DOUBLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO SUNAMERICA INC 100 MILLION OF DEBENTURES DUE APRIL 29 2023 PRICED AS 8 1/8 S AT 99375 TO YIELD 8181 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 144 PERCENTAGE POINTS ABOVE THE TREASURY 30YEAR BOND RATED BAA1 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH MERRILL LYNCH & CO VIRGINIA ELECTRIC & POWER CO 135 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE APRIL 1 2000 PRICED AS 5 7/8 S AT 99311 TO YIELD 5997 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WON BY DEALERS LED BY FIRST BOSTON CORP WAS PRICED AT A SPREAD OF 05 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE FIRST BOSTON'S BID RESULTED IN A NET INTEREST COST TO THE UTILITY OF 6037 THE ISSUE IS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P VIRGINIA ELECTRIC & POWER IS A UNIT OF DOMINION RESOURCES INC WELLS FARGO & CO 150 MILLION OF SUBORDINATED NOTES DUE APRIL 15 2003 PRICED AS 6 7/8 S AT 99925 TO YIELD 6885 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 103 PERCENTAGE POINTS ABOVE THE TREASURY 10YEAR NOTE RATED BAA2 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO BUCKSPORT MAINE 825 MILLION SERIES 1985 SOLIDWASTE DISPOSAL REVENUE BONDS PRICED BY GOLDMAN SACHS & CO THE BONDS WHICH ARE BEING REMARKETED ARE 625S PRICED AT PAR TO YIELD 625 ON MAY 1 2010 THEY HAVE BEEN RATED TRIPLEB BY S&P AND MOODY'S IS EXPECTED TO ASSIGN A BAA1 RATING HOUSTON HOUSING FINANCE CORP 91 MILLION SERIES 1993A SINGLEFAMILY MORTGAGE REVENUE REFUNDING BONDS PRICED BY A GOLDMAN SACHS & CO GROUP YIELDS RANGE FROM 26 IN 1993 TO 595 IN 2010 FINANCIAL SECURITY ASSURANCE IS INSURING THE BONDS AND THE SECURITIES CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P INDUSTRY CALIF 866 MILLION OF 1993 REFUNDING BONDS APPARENTLY WON BY A SMITH BARNEY HARRIS UPHAM & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 5633 YIELDS RANGE FROM 29 IN 1994 TO 57 IN 2017 AND 2018 THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY 5607 MILLION SERIES 1993A SALES TAX REVENUE REFUNDING BONDS PRICED BY A BEAR STEARNS & CO INC GROUP YIELDS RANGE FROM 35 IN 1995 TO 574 IN 2018 MOST OF THE BONDS HAVE BEEN RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P HOWEVER TERM BONDS DUE IN 2018 ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND TERM BONDS DUE IN 2021 ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO THOSE SECURITIES CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P NEW JERSEY TRANSPORTATION TRUST FUND AUTHORITY 500 MILLION 1993 SERIES A TRANSPORTATION SYSTEM BONDS APPARENTLY WON BY A MERRILL LYNCH & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 473 YIELDS FOR REOFFERED BONDS RANGE FROM 34 IN 1995 TO 49 IN 2002 THE ISSUE HAS BEEN RATED DOUBLEA BY MOODY'S AND SINGLEAPLUS BY S&P SAN FRANCISCO 105 MILLION VARIOUS 1993 IMPROVEMENT BONDS APPARENTLY WON BY A BANK OF AMERICA NT GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 5418 YIELDS RANGE FROM 28 IN 1994 TO 56 IN 201113 THE BONDS ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P WISCONSIN 124 MILLION SERIES 1993 GENERAL OBLIGATION BONDS APPARENTLY WON BY A BEAR STEARNS & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT APPROXIMATELY 519 YIELDS RANGE FROM 25 IN 1994 TO 55 IN 2012 AND 2013 BOTH MOODY'S AND S&P HAVE RATED THE ISSUE DOUBLEA DIGITAL BIOMETRICS INC 2041400 COMMON SHARES PRICED AT 11 EACH THROUGH UNDERWRITERS LED BY DAIN BOSWORTH INC KANEB PIPE LINE PARTNERS LP 225 MILLION SENIOR PREFERRED UNITS PRICED AT 2525 EACH THROUGH UNDERWRITERS LED BY SMITH BARNEY HARRIS & UPHAM CO TENNECO INC 235 MILLION COMMON SHARES PRICED AT 4650 EACH THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP WEATHERFORD INTERNATIONAL INC 85 MILLION COMMON SHARES OFFERED BY ITS UNDERWRITERS AT 1050 A SHARE UNDERWRITERS FOR IN THE US AND CANADA ARE MERRILL LYNCH PIERCE FENNER & SMITH INC HOWARD WEIL LABOUISSE FRIEDRICHS INC AND JEFFERIES & CO ELSEWHERE UNDERWRITERS ARE MERRILL LYNCH INTERNATIONAL LTD CREDIT LYONNAIS SECURITIES AND NM ROTHSCHILD & SONS LTD VOLKSWAGEN INTERNATIONAL FINANCE NV GERMAN PARENT 1 BILLION MARKS OF 7 EUROBONDS DUE MAY 26 2003 AT ISSUE PRICE 10175 VIA DEUTSCHE BANK AG YIELD 715 ANNUAL AT 98955 THE BREAKEVEN PRICE FOR COMANAGERS SPREAD 55 BASIS POINTS OVER COMPARABLE GERMAN BUND GUARANTOR VOLKSWAGEN AG FEES THREE POINTS EXPORT DEVELOPMENT CORP OF CANADA CANADA 500 MILLION OF 5 1/4 EUROBONDS DUE APRIL 30 1998 AT ISSUE PRICE 101215 VIA CREDIT SUISSE FIRST BOSTON LTD AND MERRILL LYNCH INTERNATIONAL LTD REOFFERED AT 9989 TO YIELD 533 SPREAD 22 BASIS POINTS ABOVE THE US TREASURY'S 5 1/8 NOTES DUE MARCH 1998 FEES 1 7/8 REPUBLIC OF AUSTRIA SOVEREIGN 200 MILLION OF 6 1/4 EUROBONDS DUE MAY 19 2008 REOFFERED AT 9889 VIA LEHMAN BROTHERS INTERNATIONAL LTD YIELD AT REOFFER PRICE 637 ANNUAL SPREAD 42 BASIS POINTS OVER US TREASURY'S 6 1/4 NOTE DUE 2003 FEES 04 POINT CITICORP US 75 MILLION OF 8 1/4 EUROBONDS DUE MAY 5 1996 AT ISSUE AND REOFFER PRICE 99713 VIA CITIBANK INTERNATIONAL PLC YIELD 836 SEMIANNUAL SPREAD 420 BASIS POINTS ABOVE US TREASURY'S 4 5/8 NOTE DUE FEBRUARY 1996 FUNDS PASSED ON TO CITIBANK NA ARGENTINA FEES 1 NEW ZEALAND SOVEREIGN 150 MILLION OF 7 3/8 EUROBONDS DUE NOV 19 1998 AT ISSUE PRICE 100432 VIA BARCLAYS DE ZOETE WEDD SECURITIES INC REOFFERED AT 98807 TO YIELD 7664 ANNUAL SPREAD 60 BASIS POINTS ABOVE 7 1/4 UK GILT DUE 1998 FEES 1 7/8 MERRILL LYNCH & CO US 100 MILLION OF FLOATINGRATE EURONOTES DUE MAY 2003 VIA MERRILL LYNCH INTERNATIONAL LTD INTEREST FLOATS AT THE PREVAILING SIXMONTH LONDON INTERBANK OFFERED RATE FOR US DOLLARS SUBJECT TO MINIMUM 5 1/8 MAXIMUM 9 ISSUE PRICE 9975 FEES 1/2 POINT ELECTRIEITEITSPRODUKTIEMAATSCHYAPPIJ OOST EN NOORD NEDERLANDS NETHERLANDS 300 MILLION DUTCH GUILDERS OF 6 3/4 EUROBONDS DUE MAY 21 2003 AT ISSUE PRICE 1009 VIA RABOBANK NEDERLAND REOFFERED AT 10015 TO YIELD 673 SPREAD 20 BASIS POINTS ABOVE DUTCH STATE 6 1/2 LOAN DUE 2003 FEE 1 POINT KFW INTERNATIONAL FINANCE DELAWARE GERMAN PARENT 150 BILLION ITALIAN LIRE OF 106 EUROBONDS DUE MAY 18 1998 VIA BANCA COMMERCIALE ITALIANA AND JP MORGAN SECURITIES LTD YIELD 1067 ANNUAL AT 9975 BREAKEVEN PRICE FOR COMANAGERS GUARANTOR KREDITANSTALT FUER WIEDERAUFBAU FEES 1 7/8 WORLD BANK SUPRANATIONAL 100 BILLION LIRE OF 108 EUROBONDS DUE MAY 19 2003 AT ISSUE PRICE 101 7/8 VIA INSTITUTO BANCARIO SAN PAOLO DI TORINO BONDS ARE AN INCREASE TO RECENT ISSUE OF 200 BILLION LIRE OF IDTICAL NOTES LAUNCHED APRIL 14 YIELD 108 ANNUAL AT PAR BREAKEVEN PRICE FOR COMANAGERS FEES 1 7/8 MCDONALD'S CORP US 1 BILLION FRENCH FRANCS OF 7 1/2 EUROBONDS DUE MAY 27 2003 AT ISSUE PRICE 10081 VIA SOCIETE GENERALE REOFFERED AT 99185 TO YIELD 762 ANNUAL SPREAD 50 BASIS POINTS ABOVE FRENCH TREASURY NOTE DUE 2003 FEES 1/2 TOYOTA MOTOR CREDIT CORP JAPAN PARENT 1 BILLION FRENCH FRANCS OF 7 1/8 EUROBONDS DUE MAY 7 1997 AT ISSUE PRICE 10115 VIA PARIBAS LTD REOFFERED AT 9975 TO YIELD 72 SPREAD 25 BASIS POINTS ABOVE FRENCH TREASURY'S 8 1/2 BONDS DUE IN 1997 FEES 1 5/8 MARUBENI CORP JAPAN 10 BILLION YEN OF 4 3/4 EUROBONDS DUE AUG 4 1998 AT ISSUE PRICE 101725 VIA BANK OF TOKYO CAPITAL MARKETS REOFFERED AT 10015 TO YIELD 471 ANNUAL FEES 1 7/8 EUROPEAN INVESTMENT BANK SUPRANATIONAL 250 MILLION SWISS FRANCS OF 4 5/8 PUBLIC BONDS DUE JUNE 2 2000 PRICED AT 102 VIA CREDIT SUISSE FEES 1 3/4 DEERE & CO 600 MILLION OF NOTES WAS PRICED IN THREE PARTS THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO ACCORDING TO MCM CORPORATEWATCH A 162 MILLION CLASS OF A1 CERTIFICATES WAS PRICED TO FLOAT 125 BASIS POINTS BELOW THE THREEMONTH LONDON INTERBANK OFFERED RATE TO A 15 CAP THE CERTIFICATES WITH AN AVERAGE LIFE OF 054 YEARS AND AN EXPECTED FINAL MATURITY OF JANUARY 1994 WERE RATED TRIPLEA BY FITCH INVESTORS SERVICE INC MOODY'S AND S&P THE CERTIFICATES ALSO RECEIVED SHORTTERM RATINGS OF F1PLUS BY FITCH P1 BY FITCH AND A1PLUS BY S&P THE 414 MILLION IN CLASS A2 CERTIFICATES WAS PRICED TO FLOAT 25 BASIS POINTS ABOVE THREEMONTH LIBOR TO A 15 CAP THE CERTIFICATES WITH AN AVERAGE LIFE OF 187 YEARS AND AN EXPECTED FINAL MATURITY OF JANUARY 1997 WERE RATED TRIPLEA BY FITCH MOODY'S AND S&P THE 24 MILLION CLASS OF SUBORDINATE CERTIFICATES WERE PRICED TO FLOAT 85 BASIS POINTS ABOVE THREEMONTH LIBOR THE CERTIFICATES WITH A 24YEAR AVERAGE LIFE AND AN EXPECTED FINAL MATURITY OF JANUARY 1997 WERE RATED SINGLEA BY FITCH AND S&P AND SINGLEA2 BY MOODY'S THE ISSUE JOHN DEERE OWNERS TRUST 1993A IS BACKED BY AGRICULTURALEQUIPMENT LOANS ASIDE FROM THE SUBORDINATE CERTIFICATES CREDIT ENHANCEMENT INCLUDES A 9 INTITIAL DEPOSIT IN A RESERVE ACCOUNT FEDERAL HOME LOAN MORTGAGE CORP 250 MILLION OF DEBENTURES DUE APRIL 29 1996 PRICED AT PAR TO YIELD 435 ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR ONE YEAR THE ISSUE WAS PRICED AT A SPREAD OF 02 PERCENTAGE POINT ABOVE THE TREASURY THREEYEAR NOTE THE NOTES WILL BE OFFERED THROUGH PRUDENTIAL SECURITIES INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 750 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 199373 IS BACKED BY STRIPPED MORTGAGEBACKED SECURITIES TRUST 221 A SYNTHETIC 8 1/2 CLASS WHICH IS IN TURN BACKED BY FANNIE MAE 7 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 805 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 295 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 250 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS THE OFFERING SERIES 199375 IS BACKED BY STRIPPED MORTGAGEBACKED SECURITIES TRUST 221 A SYNTHETIC 7 CLASS WHICH IS IN TURN BACKED BY FANNIE MAE 7 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 805 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 295 YEARS 9304220098 930422 FINANCING BUSINESS AVNET INC AVNET INC GREAT NECK NY STANDARD & POOR'S CORP SAID IT PLACED THE SINGLEAPLUS SUBORDINATED DEBT RATING OF THIS ELECTRONIC COMPONENTS DISTRIBUTOR ON CREDITWATCH WITH NEGATIVE IMPLICATIONS REFLECTING AVNET'S PROPOSED ACQUISITION OF HALLMARK ELECTRONICS ABOUT 100 MILLION OF RATED DEBT IS AFFECTED THE PROPOSED ACQUISITION IF COMPLETED WILL WEAKEN AVNET'S CREDIT QUALITY S&P SAID LIKE AVNET HALLMARK DISTRIBUTES ELECTRONIC COMPONENTS 9304220097 930422 RODALE SUES POLL FIRM BAXTER INTERNATIONAL OVER HEALTH SURVEY EMMAUS PA RODALE PRESS INC FILED SUIT AGAINST POLLING FIRM LOUIS HARRIS & ASSOCIATES AND A HEALTH CARE PRODUCTS COMPANY ALLEGING THAT THEY IMPROPERLY USED MATERIAL FROM RODALE'S ANNUAL SURVEY ON THE NATION'S PREVENTIVE HEALTH BEHAVIOR UNTIL THIS YEAR RODALE HAD USED HARRIS TO CONDUCT ITS ANNUAL SURVEY FROM WHICH IT PREPARED A PREVENTION INDEX EXAMINING FACTORS SUCH AS HOW OFTEN PEOPLE EXERCISE WHETHER THEY ARE OVERWEIGHT THEIR SMOKING AND DRINKING HABITS AND WHETHER THEY USE SEAT BELTS AND GET REGULAR CHECKUPS LAST MONTH HARRIS AND BAXTER INTERNATIONAL INC DEERFIELD ILL RELEASED A BAXTER SURVEY OF AMERICAN HEALTH HABITS AND COMPARED THE RESULTS WITH DATA FROM PREVIOUS YEARS WHEN HARRIS HAD CONDUCTED THE SURVEY FOR RODALE'S PREVENTION MAGAZINE IN THE LAWSUIT FILED IN A FEDERAL COURT IN PENNSYLVANIA RODALE SEEKS DAMAGES IN EXCESS OF 1 MILLION AND CHARGES THE DEFENDANTS WITH COPYRIGHT VIOLATIONS AND UNFAIR BUSINESS PRACTICES RODALE ALLEGED THAT HARRIS THREATENED TO TAKE THE PREVENTION INDEX TO ANOTHER SPONSOR IF RODALE DIDN'T RENEW ITS CONTRACT AND IT SAID THE BAXTER POLL WAS TIMED TO HARM RODALE WHICH RELEASES ITS SURVEY IN LATE MAY OR EARLY JUNE WHEN INFORMED ABOUT THE SUIT HUMPHREY TAYLOR LOUIS HARRIS'S PRESIDENT SAID I THOUGHT THE MATTER WAS CLOSED I WASN'T AWARE THAT THEY HAD FILED A LAWSUIT OUR LAWYERS ALSO DIDN'T KNOW ABOUT IT I'M VERY DISTRESSED THIS HAPPENED HE SAID HE COULDN'T COMMENT FURTHER WITHOUT SEEING THE LAWSUIT BAXTER OFFICIALS WERE UNAVAILABLE TO COMMENT ON THE SUIT 9304220096 930422 TAXABLE MONEY FUNDS TAKE IN 697 BILLION DESPITE DROP IN YIELDS INVESTORS POURED BILLIONS OF DOLLARS INTO TAXABLE MONEYMARKET FUNDS EVEN AS YIELDS SLID TO NEW LOWS IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS EASED TO 266 FROM 268 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS ASSETS OF 585 TAXABLE FUNDS GREW BY 697 BILLION TO 49049 BILLION THE NEWSLETTER SAID MOST OF THE INFLOW 481 BILLION WAS FROM INSTITUTIONAL INVESTORS AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS LENGTHENED BY ONE DAY TO 63 DAYS A SIGN THAT PORTFOLIO MANAGERS DON'T EXPECT A SIGNIFICANT INCREASE IN SHORTTERM INTEREST RATES ANY TIME SOON THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS SLIPPED TO 263 FROM 264 ACCORDING TO MONEY FUND REPORT THE AVERAGE 30DAY SIMPLE YIELD DECLINED TO 265 FROM 266 AND THE AVERAGE 30DAY COMPOUND YIELD REMAINED AT 269 YIELDS ON TAXFREE MONEY FUNDS ROSE THE AVERAGE SEVENDAY COMPOUND YIELD FOR INSTANCE WAS 197 IN THE LATEST WEEK UP FROM 189 THE NEWSLETTER REPORTED THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 274 FOR AN INVESTOR IN THE 28 TAX BRACKET AND TO 286 FOR SOMEONE PAYING 31 IN TAXES ASSETS OF 318 TAXEXEMPT FUNDS FELL BY 27BILLION TO 10080 BILLION ACCORDING TO MONEY FUND REPORT AVERAGE MATURITY SHORTENED BY A DAY TO 49 DAYS 9304220095 930405 LETTERS TO THE EDITOR SOMETHING HAPPENED TO US ALTHOUGH I AGREE WITH THE SPIRIT OF YOUR NO GUARDRAILS EDITORIAL OF MARCH 18 I BELIEVE YOU ARE MISSING THE POINT YOUR CONCLUSION THAT PEOPLE LIKE MICHAEL GRIFFIN AND THE TRAGICALLY MURDERED DR DAVID GUNN ARE STATUS QUO IS REACTIONARY AT WORST HYPERBOLE AT BEST TO SOMEHOW BLAME DAYTIME TV AND THE CHICAGO RIOTS AS CAUSES FOR A LUNATIC'S MURDER OF A DOCTOR IS INTELLECTUALLY LAZY TO BLAME ANYONE BUT THE DEMONS WITHIN MICHAEL GRIFFIN FOR THIS MURDER IS A LEAP IN JUDGMENT EQUAL TO THE LIBERAL'S CLAIM THAT SOCIETY IS TO BLAME FOR ANY CRIMINAL'S BEHAVIOR YES THE GUARDRAILS OF SOCIETY HAVE BEEN TAKEN DOWN IN SOME CASES PERSONAL DECISIONS IN THE 1990S MAY BE LESS CONCERNED WITH SOCIETY AS A WHOLE THAN THEY MAY HAVE BEEN IN THE '50S YES THE MEDIA ARE ALL TOO WILLING TO CREATE PROGRAMMING AROUND BORDERLINE PSYCHOPATHS THE FACT THAT THESE PEOPLE ARE ODD HOWEVER IS WHY THEY ARE ON TV AND SOMEHOW I THINK THAT WOMEN FROM THE MIDWEST ENDED UP IN PROSTITUTION LONG BEFORE COSMO WAS PART OF THEIR REGULAR READING MATERIAL SOMEWHERE ALONG THE WAY PERSONAL ACCOUNTABILITY DISAPPEARED THE RUGGED INDIVIDUAL AS HERO WAS DESTROYED WE NO LONGER HONOR A JACK ARMSTRONG INSTEAD WE VIEW HIM AS GREEDY AND PERSONAL SUCCESS AS UNFAIR THERE ARE NO MORE HEROES NO MORE ROLE MODELS INSTEAD WE HAVE MEDIACREATED ICONS LIKE MADONNA WE STAND UP FOR LITTLE AND MAKE FEW COMMITMENTS THAT INTERFERE WITH OUR LEISURE PURSUITS COMBINE THIS WITH RELIGION'S DECLINING INFLUENCE AND PEOPLE WANDER THEY JOIN CULTS MURDER DOCTORS AND RETREAT TO THE COUCH AND THE SITCOM CONCERN FOR SOCIETY IS REPLACED BY HOPELESSNESS AND APATHY LEFT WITH ONLY SELFINTEREST WE PROTECT WHAT IS OURS AND SOMEHOW AMUSE OURSELVES YOU RAIL AGAINST A MUCH DEEPER SHIFT IN AMERICAN CULTURE AWAY FROM COMMUNITY AND FAMILY RULES OF CONDUCT AND TOWARD MORE AUTONOMY MORE PERSONAL INDEPENDENCE AND COMPLAIN AS TO LIMITS YOU SET YOUR OWN THIS IS SURPRISING COMING FROM YOU AS THIS IS A STANDARD LIBERAL CRITIQUE OF THE 1980S A DECADE CHAMPIONED IN YOUR EDITORIAL PAGES BLAMING MICHAEL MILKEN OR RONALD REAGAN FOR OUR PROBLEMS IS AS LUDICROUS AS BLAMING THE CHICAGO SEVEN OR THE FREE LOVE MOVEMENT LIKEWISE HOLLYWOOD IS NO MORE TO BLAME FOR THE DAVID KORESHS THAN IS THE BIBLE AND THE CULTURAL ELITE ARE NO MORE RESPONSIBLE THAN FLUORIDATION FOR THE BREAKDOWN OF CIVIL SOCIETY AS THE JOURNAL ONCE KNEW IT INDIVIDUALS MUST BE RESPONSIBLE FOR THEIR ACTIONS BUT SO TOO MUST THE INSTITUTIONS OF THE SOCIETIES TO WHICH THEY BELONG THE GREAT ACT OF LAWLESSNESS OF THE 1960S WAS THE GOVERNMENT'S DECISION TO TAKE THE COUNTRY INTO A WAR WITHOUT THE FORMAL CONSTITUTIONAL PROCESS OF HAVING WAR DECLARED OUR LEADERS TRIED TO WAGE WAR ON THE POLITICAL CHEAP THEREBY CHEAPENING OUR POLITICAL SYSTEM AND CONSEQUENTLY OUR NATIONAL SELFIDENTITY IF THE POLITICAL DEBATE DURING THE 1960S SEEMED TO RESEMBLE A MUTATION OF THE DEMOCRATIC PROCESS IT WAS BECAUSE THE DEMOCRATIC PROCESS WAS POISONED AT THE BEGINNING AS ONE WHO GREW UP WITH THE FREQUENTLY MALIGNED VALUES OF THE OZZIE AND HARRIET GENERATION I OFTEN LOOK BACK WONDERING WHAT HAPPENED HOW COULD A GENERATION OF HARDWORKING AMERICANS CONDUCT THEIR LIVES DILIGENTLY AND RAISE THEIR FAMILIES ONLY TO BE KICKED IN THE TEETH ONE DAY BY WHAT NOW PASSES FOR THE LIFESTYLE OF THE '90S SOCIETALLY SUBCULTURAL MALCONTENTS NOW DEFINE OUR VERY BEING THEY WILL FIND A SYMPATHETIC EAR IN OUR CURRENT LEADERSHIP FOR IT IS REPLETE WITH THEIR BLATHER AND BORN OF THEIR CAUSE THE IDEA OF CIVIL DISOBEDIENCE DID NOT SPRING FULL BLOWN FROM THE INTELLECTUALS YOU CITE THE CIVIL RIGHTS MOVEMENT TURNED WHAT IN THE PAST HAD BEEN SIMPLY ILLEGAL INTO A VALID MOVEMENT THAT GAVE BIRTH TO THE CIVIL RIGHTS ACTS OF 1964 AND 1968 THE BARRIERS OF ACCEPTABLE POLITICAL AND PERSONAL CONDUCT IN AMERICA WERE LOWERED BY THOSE WHO FOUNDED THE COUNTRY YOU MAY REMEMBER THE INTELLECTUAL WHO FELT THAT A RIOTOUS ACT COULD BE JUSTIFIED BY THE FOLLOWING WHEN IN THE COURSE OF HUMAN EVENTS IT BECOMES NECESSARY FOR ONE PEOPLE TO DISSOLVE THE POLITICAL BANDS WHICH HAVE CONNECTED THEM WITH ANOTHER IT IS THE RIGHT OF THE PEOPLE TO ALTER OR TO ABOLISH IT AND TO INSTITUTE NEW GOVERNMENT THE AUTHOR OF THIS CALL TO CONFRONTATION WAS THOMAS JEFFERSON YOU FAIL OR SIMPLY DO NOT WANT TO ACKNOWLEDGE THAT THE REAL CAUSE OF DR GUNN'S DEATH IS RELIGIOUS INTOLERANCE HIDING AS ANTIABORTION PROTEST EQUALLY OUTLANDISH WAS YOUR DESCRIPTION OF THE NATION'S SOCIAL AND PERSONAL DYSFUNCTION BEING CAUSED BY UNNAMED ACTIVISTS AND DISSIDENTS WHICH HAS IN TURN LED TO OUR CURRENT DRUG AND OTHER SOCIAL PROBLEMS BALONEY TO PARAPHRASE A PRESIDENTIAL CAMPAIGN ISSUE IT'S THE POVERTY STUPID IGNORANCE POVERTY PREJUDICE AND NEGLECT ARE THE MAIN CAUSES OF OUR SOCIAL PROBLEMS YOU BLAME THE PEOPLE WHO MERELY HAVE POINTED OUT THE PROBLEM AND HAVE DIFFERING POLITICAL VIEWPOINTS YOU ALSO IMPLY THAT TEENAGE PROSTITUTION CAN BE CAUSED BY GIRLS IN THE MIDWEST READING ABOUT SEX IN THIRTYSOMETHING MAGAZINES FROM THE SIN CITY OF NEW YORK THIS IS PURE VICTORIAN SEX IS DIRTY NONSENSE ARE WE TO BELIEVE THAT IF THEY HAD ONLY SUBSCRIBED TO THE WALL STREET JOURNAL INSTEAD THESE SAME UNFORTUNATES WOULD NOW BE UPSTANDING BOND TRADERS WORKING FOR SALOMON BROTHERS YOUR ARGUMENT WAS DESIGNED TO PLACE BLAME FOR OUR NATIONAL MALAISE OF IRRESPONSIBILITY ON THE POLITICAL LEFT WHAT ABOUT THE RIGHT WHAT ABOUT OLIVER NORTH PUTTING HIMSELF ABOVE THE LAW BECAUSE HE THOUGHT HE WAS JUSTIFIED WHAT ABOUT SAM PIERCE LINING THE POCKETS OF REPUBLICAN CONTRIBUTORS WITH DESPERATELY NEEDED HOUSING MONEY WHAT ABOUT ELLIOT ABRAMS SANITIZING THE HUMAN RIGHTS RECORDS OF GENOCIDAL REGIMES IN LATIN AMERICA PERHAPS THE DATE WE STARTED TO LOSE OUR MORAL COMPASS WAS NOT THE 1968 DEMOCRATIC CONVENTION BUT RATHER WATERGATE WHEN THE PRESIDENT OF THE UNITED STATES URGED HIS SUBORDINATES TO PLAY HARDBALL AND THEN DENIED RESPONSIBILITY BY TRYING TO COVER UP THEIR ILLEGAL ACTS THE VAST MAJORITY OF THOSE WHO ACTIVELY OPPOSED THE WAR AND WHO FOUGHT FOR GAY WOMEN'S BLACK AND BROWN RIGHTS DID SO NONVIOLENTLY MOST EVEN ESCHEWED CIVIL DISOBEDIENCE AS A TACTIC INDEED THE MOST SUCCESSFUL DEMONSTRATION THE MORATORIUM OF OCT 15 1969 WHICH ATTRACTED AS MANY AS FOUR MILLION PREDOMINANTLY MIDDLE CLASS PARTICIPANTS ENGAGING IN ENTIRELY PEACEFUL ACTS IN MORE THAN 200 CITIES HAD A GOOD DEAL TO DO WITH RESTRAINING RICHARD NIXON FROM UNLEASHING THE SAVAGE BLOW HE PLANNED FOR NORTH VIETNAM ON NOV 1 WHAT ELSE WERE PATRIOTIC CITIZENS WHO LOVED THEIR COUNTRY TO DO EXCEPT TO GO ON ENDLESS DEMONSTRATIONS BY THE WINTER OF 1968 A MAJORITY TOLD POLLSTERS THE WAR WAS A MISTAKE THOSE WHO WENT TO CHICAGO IN AUGUST 1968 WERE FRUSTRATED BY THE FACT THAT ALTHOUGH ANTIWAR CANDIDATES WON ALMOST ALL OF THE PRIMARIES HUBERT HUMPHREY WHO VOWED TO CONTINUE LYNDON JOHNSON'S POLICIES HAD A LOCK ON THE NOMINATION CONTRARY TO YOUR IMPLICATION MUCH OF WHAT THE PROTESTERS DID WAS JUSTIFIABLE AND EXPLAINABLE THE WALKER COMMISSION LABELED THE CLASHES A POLICE RIOT WHO CAN FORGET MAYOR RICHARD J DALEY WHO CLOSED THE CONVENTION AND THE CITY TO DISSENTERS IN DEFIANCE OF AMERICAN PRINCIPLES SHOUTING DOWN SEN ABRAHAM RIBICOFF WITH ANTISEMITIC SLURS WHERE DID MICHAEL GRIFFIN COME FROM I'D TRACE HIS ORIGINS TO BULL CONNOR AND HIS CATTLE PRODS IN BIRMINGHAM TO MAYOR DALEY AND HIS RIOTING POLICE IN CHICAGO TO WILLIAM CALLEY AND HIS MEN AT MY LAI AND TO PRESIDENTS REAGAN AND BUSH WHO NOT ONLY ENCOURAGED VIGOROUS RIGHTTOLIFE PROTESTS BUT WHO ALSO DID PRECIOUS LITTLE TO PROTECT THE LEGAL RIGHTS OF THOSE WHO WORKED IN AND USED ABORTION CLINICS AS A VIETNAM VETERAN WELL ADJUSTED I MIGHT ADD UNLIKE THE MEDIA LIKE TO PORTRAY US I AGREE WITH YOUR DATE OF OUR MORAL AND LAWFUL DEMISE I LEFT IN 1968 A 19YEAROLD BOY RAISED ON THE PRINCIPLED FOUNDATIONS OF THE 1950S AND EARLY '60S I RETURNED TO A SOCIAL ATMOSPHERE THAT WAS AS FOREIGN AS THE JUNGLES I HAD LEFT BEHIND WE ARE THE VICTIMS OF RADICAL MINORITY FACTIONS WITH DECADENT AGENDAS THAT HAVE INFILTRATED EVERY FIBER OF OUR SOCIAL QUILT WE BETTER REPLACE THE GUARDRAILS BEFORE THE ENTIRE ROADBED COLLAPSES AND MAKES ITS RECONSTRUCTION FUTILE I DATE THE TIME OF CHANGE NOT WITH THE 1968 DEMOCRAT CONVENTION THOUGH IT WAS A SIGNPOST FOR ME THE END OF INNOCENCE IN AMERICA CAME WITH THE ASSASSINATION OF JOHN F KENNEDY HISTORY WILL BE THE FINAL ARBITER OF THOSE BRIEF KENNEDY YEARS AND THE MAN HIMSELF BUT THE WRENCHING VIOLENCE OF HIS MURDER SEEMINGLY ENDED THE WAY WE SAW OURSELVES AND THE WAY WE SAW OTHERS HIS MURDER WAS THE ENTRY INTO THIS NOW ENDLESS ERA OF TRAGEDY YOUR EDITORIAL BROUGHT TO MIND A POEM BY RALPH WALDO EMERSON ENTITLED GRACE EXAMPLE CUSTOM FEAR OCCASION SLOW THESE SCORNED BONDSMEN WERE MY PARAPET HAD NOT THESE ME AGAINST MYSELF DEFENDED 9304220094 930422 FORMER HUD OFFICIAL SENTENCED TO PRISON FOR ILLEGAL GRATUITY WASHINGTON LANCE WILSON A FORMER TOP HOUSING OFFICIAL WAS SENTENCED TO SIX MONTHS IN PRISON IN CONNECTION WITH THE INFLUENCEPEDDLING SCANDAL IN THE REAGAN ADMINISTRATION'S HOUSING DEPARTMENT MR WILSON WHO WAS EXECUTIVE ASSISTANT TO SAMUEL PIERCE SECRETARY OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT DURING MUCH OF THE 1980S WAS CONVICTED IN JANUARY IN FEDERAL COURT HERE OF PROVIDING AN ILLEGAL GRATUITY HE WAS ACQUITTED ON MORE SERIOUS CHARGES OF BRIBERY AND CONSPIRACY MR WILSON WAS CONVICTED FOR GIVING AN EXPENSESPAID WEEKEND IN NEW YORK INCLUDING THEATER TICKETS AND LIMOUSINE SERVICE TO DUBOIS GILLIAM AT THE TIME MR GILLIAM WAS A HUD DEPUTY ASSISTANT SECRETARY AND MR WILSON WAS WORKING FOR PAINEWEBBER INC MR WILSON'S INDICTMENT SAID HE FALSELY CLAIMED THAT PAINEWEBBER WOULD FINANCE THREE PROJECTS FOR WHICH LEONARD BRISCOE A FORT WORTH TEXAS DEVELOPER SOUGHT HUD SUBSIDIES PAINEWEBBER WASN'T NAMED IN THE INDICTMENT THE 44YEAROLD MR WILSON WHO ALSO WAS ORDERED TO PAY AN 8000 FINE AND PLACED ON TWO YEARS' PROBATION WAS SENTENCED BY JUDGE STANLEY HARRIS OF THE FEDERAL COURT OF THE DISTRICT OF COLUMBIA JUDGE HARRIS DENIED BAIL PENDING APPEAL CODEFENDANTS MAURICE DAVID STEIER AND MR BRISCOE ARE TO BE SENTENCED SOON MR BRISCOE WAS CONVICTED OF TWO FELONY GRATUITY COUNTS MR STEIER WAS CONVICTED OF ONE FELONY GRATUITY COUNT 9304220093 930422 CHRISTIE'S AGREES TO PURCHASE SPINK BIG UK ART DEALER BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL IN AN UNUSUAL ALLIANCE THAT JOLTED THE ART WORLD AUCTION HOUSE CHRISTIE'S INTERNATIONAL PLC SAID IT AGREED TO BUY ONE OF THE OLDEST AND LARGEST ART DEALERS IN THE WORLD LONDONBASED SPINK & SON LTD SPINK & SON FOUNDED IN 1666 IS ONE OF THE LEADING DEALERS IN COINS ORIENTAL ART AND ENGLISH PAINTINGS CHRISTIE'S SAID IT WILL PAY HOLDING COMPANY ANDREW WEIR & CO 109 MILLION FOR SPINK PLUS FUTURE PAYMENTS OF AS MUCH AS 145 MILLION FOR SETTLEMENT OF DEBTS TAXES AND PROCEEDS FROM THE SALE OF SPINK'S INVENTORY OF ART CHRISTIE'S CHAIRMAN CHRISTOPHER DAVIDGE SAID THE AUCTION HOUSE IS PURCHASING SPINK IN AN EFFORT TO EXPLOIT THE CASH EXPLOSION IN THE FAR EAST AND SOUTH AMERICA IN COMING YEARS THOSE TWO CONTINENTS WILL THROW UP FORTUNES VERY QUICKLY HE SAID BUT AUCTION HOUSES WHICH CLAIM THE ROLE OF DISINTERESTED MIDDLEMEN IN SELLING ART HAVE OFTEN BEEN AT ODDS WITH THE ART DEALER COMMUNITY AND DEALERS YESTERDAY SAID CHRISTIE'S PURCHASE OF SPINK WOULD RAISE SERIOUS ISSUES OF CONFLICT OF INTEREST WHAT DISTURBS ME IS THAT THEY'RE BECOMING A RETAIL OPERATION SAID KHALIL RIZK PRESIDENT OF NEW YORK'S CHINESE PORCELAIN CO A MAJOR ASIAN ART DEALER THERE IS A DANGER HE SAID THAT CHRISTIE'S COULD BE TEMPTED TO MANIPULATE THE MARKET BY ASSIGNING HIGHER PRICE ESTIMATES FOR ART WORKS THAT SPINK MIGHT SELL AT AUCTION NOT AN UNCOMMON PRACTICE FOR DEALERS WITH INVENTORY TO LIQUIDATE DAVID TYLER CHRISTIE'S CHIEF FINANCIAL OFFICER SAID THERE COULD BE CONFLICTS OF INTEREST WE ARE AWARE OF THAT HE SAID SPINK WOULD BE RUN AS A SEPARATE DIVISION OF CHRISTIE'S WITH ITS OWN BOARD TO AVOID ANY POSSIBLE CONFLICTS FOR YEARS CHRISTIE'S OF LONDON HAS BEEN RUNNING NECK AND NECK IN A BITTER BATTLE FOR WORLD MARKET SHARE WITH RIVAL AUCTION HOUSE SOTHEBY'S HOLDINGS INC OF NEW YORK BY BUYING A LARGE AND VENERABLE ART DEALER WITH AN INTERNATIONAL CLIENTELE CHRISTIE'S WILL GAIN THE IMMEDIACY OF A RETAIL OPERATION THAT CAN SELL ART ON THE SPOT MR DAVIDGE SAID UNTIL NOW HE SAID A GUY COULD WALK INTO OUR BUENOS AIRES OFFICE AND SAY I'VE MADE A MILLION IN STOCKS I'D LIKE TO SEE SOME AZTEC SILVER' AND MIGHT HAVE TO WAIT FOR THE NEXT CHRISTIE'S SILVER AUCTION SIX MONTHS LATER WHICH MIGHT OFFER LITTLE OF SUCH SILVER NOW WE'RE GOING TO SELL YOU SOME RIGHT AWAY HE SAID THE MOVE BY CHRISTIE'S MARKS A REVOLUTIONARY STEP IN THE ARTAUCTION BUSINESS AUCTIONEERS LIKE CHRISTIE'S AND SOTHEBY'S CHARGE SELLERS A SLIDING FEE AND BUYERS A COMMISSION RECENTLY RAISED TO 15 IN MOST CASES ART DEALERS ON THE OTHER HAND BUY ART WORKS FOR THEIR INVENTORY MARK UP THE PRICE OFTEN BY 25 TO 100 AND RESELL THE WORKS DEALERS STRESS THAT THEY OFFER CUSTOMERS EXPERTISE AND PRIVACY CHRISTIE'S IN MORE THAN 227 YEARS OF OPERATION HAS NEVER CLOSELY AFFILIATED WITH AN ART DEALER AUCTIONEERING WILL STILL BE THE CORE BUSINESS IN MATURE MARKETS BUT EMERGING MARKETS IN ASIA AND SOUTH AMERICA WILL INCREASINGLY BE SERVED BY SPINK & SON MR DAVIDGE SAID THE LINE BETWEEN DEALERS AND AUCTION HOUSES HAS ALREADY BLURRED AS THE ART MARKET HEATED UP IN THE 1980S BOTH SOTHEBY'S AND CHRISTIE'S OFFERED GUARANTEED MINIMUM PRICES TO CONSIGNEES WITH DESIRABLE WORKS TO SELL THE AUCTION HOUSE BECAME THE OWNER OF THE ART IN 1990 SOTHEBY'S PURCHASED THE INVENTORY OF THE RENOWNED MODERNART DEALER PIERRE MATISSE FOR 1428 MILLION IN A JOINT VENTURE WITH ACQUAVELLA MODERN ART A NEW YORK ART DEALER SOTHEBY'S HAS BEEN GRADUALLY SELLING THE INVENTORY OF THE MATISSE GALLERY AND THE TRANSACTION HAS BEEN HUGELY PROFITABLE FOR SOTHEBY'S BUT DIANA D BROOKS SOTHEBY'S HEAD OF AUCTION OPERATIONS SAID THE MATISSE DEAL DIDN'T MAKE SOTHEBY'S AN ART DEALER IT WAS A GRADUAL LIQUIDATION OF A SET INVENTORY AS OPPOSED TO AN ONGOING CONCERN THE SPINK ACQUISITION WON'T BE A MAJOR THREAT TO SOTHEBY'S SHE ADDED SPINK'S ANNUAL SALES OF ABOUT 334 MILLION REPRESENT ABOUT 3 OF THE ANNUAL SALES VOLUME OF EITHER CHRISTIE'S OR SOTHEBY'S SHE NOTED SPINK POSTED LOSSES IN BOTH 1991 AND 1992 FOLLOWING THE ARTMARKET CRASH BUT AT THE HEIGHT OF THE ARTMARKET BOOM IN 1988 AND 1989 ITS ANNUAL SALES WERE MORE THAN 70 MILLION SPINK IS A MAGICAL NAME SAID MR RIZK THE NEW YORK ART DEALER THE COMPANY FIRST WENT UP FOR SALE IN THE SPRING OF 1990 THROUGH S G WARBURG SECURITIES WITH A PRICE TAG THEN RUMORED TO BE MORE THAN 60 MILLION ONE CHRISTIE'S OFFICIAL SEES AN EXTRA BENEFIT IN THE SPINK PURCHASE WHILE ARCHRIVAL SOTHEBY'S WILL CELEBRATE ITS 250TH BIRTHDAY NEXT YEAR THE PURCHASE OF SPINK & SON HE SAID NOW MAKES CHRISTIE'S THE OLDER COMPANY 9304220092 930422 TECHNOLOGY & MEDICINE CHIP TECHNOLOGY MAY TOP METHOD FOR REPRODUCTION NEW TECHNIQUE OFFERS OBSTACLE COURSE' TO PICK BEST SPERM FOR IN VITRO FERTILIZATION BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL PHILADELPHIA THANKS TO AN UNUSUAL MARRIAGE OF COMPUTER CHIP TECHNOLOGY AND BIOLOGY RESEARCHERS HOPE TO IMPROVE THE CURRENT SUCCESS RATE OF IN VITRO FERTILIZATION METHODS RESEARCHERS AT THE UNIVERSITY OF PENNSYLVANIA'S MEDICAL CENTER SAID THEY DEVELOPED A LOWCOST SILICON GLASS CHIP WITH MINIATURE PATHWAYS THAT SERVE AS AN OBSTACLE COURSE AND HELP SELECT THE HEALTHIEST SPERM FOR SUCH FERTILIZATION TECHNIQUES CURRENT METHODS WHICH EMPLOY SLIDES OR TEST TUBES HAVE AN OVERALL FERTILIZATION SUCCESS RATE OF LESS THAN 25 ESTIMATES PROF LARRY KRICKA ONE OF THE RESEARCHERS WE HOPE TO IMPROVE ON THIS HE SAYS THE SILICON CHIP HAS TWO TINY HOLES ONE IS FILLED WITH SPERM THE OTHER HOLDS AN UNFERTILIZED FEMALE EGG THE HOLES ARE CONNECTED BY PATHWAYS ONE QUARTER THE THICKNESS OF A HUMAN HAIR THROUGH WHICH THE SPERM RACE TOWARD THE EGG IN A SPONTANEOUS PROCESS CALLED MOTILITY THE SPERM THAT REACHES THE EGG FIRST IS ASSUMED TO BE THE HEALTHIEST AFTER DIVISION THE FERTILIZED EGG IS REMOVED FROM THE CHIP AND LATER IMPLANTED IN A WOMAN WE HAVE DEVISED CHANNELS ON THE CHIP'S SURFACE THAT ARE BENT AND TWISTED WHICH CHALLENGE THE SPERM IN A NUMBER OF WAYS DR KRICKA SAYS THE ONLY SPERM THAT MAKE IT TO THE EGG ARE AUTOMATICALLY THE MOST MOTILE AND THEREFORE HEALTHY HE SAYS HIS TEAM HAS SO FAR SUCCESSFULLY TESTED THE CHIPS USING SEMEN AND EGGS FROM MICE THEY HOPE TO EVENTUALLY TEST THE PROCEDURE WITH HUMAN SPERM AND EGGS RESEARCHERS SAY THEIR PROCESS WOULD REQUIRE ONLY A SMALL AMOUNT OF SEMEN FROM DONORS COMPARED WITH AMOUNTS REQUIRED BY CURRENT IN VITRO FERTILIZATION METHODS ALSO THE SPEED OF THE NEW PROCESS WOULD ALLOW THE SAMPLE TO REMAIN FRESH USING PRESENT METHODS SCIENTISTS CAN INADVERTENTLY AGE THE SPERM WHILE CONDUCTING A SEQUENCE OF TESTS THEY NOTE PROF KRICKA ENVISIONS SUCH CHIPS' BEING USED FOR SEXSELECTION PROCEDURES ALSO BECAUSE FEMALE SPERM SWIM FASTER THAN MALE SPERM WE COULD DESIGN THE CHAMBERS ON THE CHIP IN SUCH A WAY THAT YOU COULD FAVOR FEMALE SPERM OVER MALE SPERM OR VICE VERSA HE SAYS THE RESEARCHERS STRESS THAT THE MINIATURE PATHWAYS ON THE CHIP WILL ENABLE SCIENTISTS TO IMPROVE ON SPERM TESTING METHODS THE TINY WIDTH OF THE CHANNELS SOMETIMES ALLOWS ONLY ONE CELL TO PASS THROUGH AT A TIME MAKING IT POSSIBLE TO INSTANTLY ASSESS THE BIOCHEMICAL PROPERTIES OF THE SPERM RESEARCHERS SAY THEY SAY THEY ARE DEVELOPING OTHER CHIPS THAT CAN BE USED TO HASTEN THE RESULTS OF COMMON MEDICAL TESTS NEEDED TO DIAGNOSE AND TREAT CANCER BLOOD DISORDERS AND HORMONE DYSFUNCTIONS FOR BLOOD TYPING YOU WOULD ONLY NEED A FRACTION OF A DROP OF BLOOD SAYS DR KRICKA THUS REDUCING THE AMOUNT OF BLOOD COLLECTED AND STORED FIVE PATENT APPLICATIONS COVERING THE NEW CHIP TECHNOLOGY HAVE BEEN FILED SO FAR AND THE RESEARCHERS ALONG WITH SOME VENTURE CAPITALISTS FORMED CHEMCHIP A COMPANY TO DEVELOP AND PROMOTE PRODUCTS RESULTING FROM THE RESEARCH 9304220091 930422 BUSINESS BRIEF FLEET FINANCIAL NET MORE THAN DOUBLED IN 1ST PERIOD NEW ENGLAND SECTOR CITED PROVIDENCE RI FLEET FINANCIAL GROUP LED BY A REBOUND IN ITS NEW ENGLAND BANKING OPERATIONS POSTED FIRSTQUARTER NET INCOME OF 1063 MILLION OR 66 CENTS A SHARE MORE THAN DOUBLE ITS PROFIT A YEAR EARLIER THE MAIN CHANGE FROM A YEAR EARLIER FOR FLEET IS STRONG EARNINGS FROM ITS 1991 ACQUISITION OF BANK OF NEW ENGLAND A YEAR EARLIER THE BANK HAD NET INCOME OF 504 MILLION OR 31 CENTS A SHARE FLEET WHICH COMPLETED ITS CONSOLIDATION OF THE FAILED BANK LATE LAST YEAR POSTED EARNINGS IN THE FIVE NEW ENGLAND STATES WHERE IT OPERATES OF 73 MILLION UP SHARPLY FROM 125 MILLION A YEAR EARLIER THAT MORE THAN MADE UP FOR A DECLINE IN EARNINGS AT FLEET'S FINANCIAL SERVICES GROUP WHICH CONTRIBUTED 292 MILLION TO THE BANK'S OVERALL EARNINGS DOWN FROM 359 MILLION A YEAR EARLIER FLEET'S NEW YORK BANKING OPERATIONS EARNED 262 MILLION UP FROM 202 MILLION A YEAR EARLIER FLEET NEW ENGLAND'S LARGEST BANK WITH 451 BILLION IN ASSETS CONTINUED ITS SLOW PARING OF SOURED ASSETS REDUCING NONPERFORMING ASSETS INCLUDING RESTRUCTURED CREDITS AND LOANS 90 DAYS OR MORE PAST DUE TO 104 BILLION A 67 MILLION DROP FROM THE PREVIOUS QUARTER BUT THE BANK HAD NET CHARGEOFFS OF 80 MILLION COMPARED WITH YEAREARLIER CHARGEOFFS OF 111 MILLION SHOWING THAT THE INFLOW OF BAD CREDITS IS CONTINUING NONPERFORMING ASSETS ARE DECLINING BUT THEY REALLY HAVE TO DECLINE FASTER SAYS GERARD CASSIDY AN ANALYST WITH HANCOCK INSTITUTIONAL EQUITY SERVICES THE INVESTMENT COMMUNITY WILL BE WATCHING TO SEE IF THAT NUMBER DROPS SEPARATELY BAYBANKS INC A BOSTON BANK WITH 96 BILLION IN ASSETS SHOWED A 55 RISE IN FIRSTQUARTER EARNINGS FROM A YEAR EARLIER BAYBANKS POSTED NET INCOME OF 128 MILLION OR 68 CENTS A SHARE COMPARED WITH YEAREARLIER NET INCOME OF 82 MILLION OR 51 CENTS A SHARE WHICH WAS BOOSTED BY NET SECURITIES GAINS OF 354 MILLION THE BANK HAD ONLY 36000 IN SECURITIES GAINS IN THE LATEST QUARTER BAYBANKS' EARNINGS ALSO WERE HELPED BY A MUCH SMALLER LOANLOSS PROVISION 115 MILLION THAN THE PROVISION OF 431 MILLION TAKEN IN THE YEAREARLIER QUARTER YET SOME ANALYSTS HAVE CRITICIZED THE BANK FOR BEING UNDERRESERVED BAYBANKS' NONPERFORMING ASSETS OF 4303 MILLION FOR THE FIRST QUARTER INCLUDING ACCRUING LOANS 90 DAYS OR MORE PAST DUE IS COVERED BY A LOANLOSS RESERVE OF 1882 MILLION THAT 44 COVERAGE RATIO IS ABOUT HALF WHAT IT IS AT MOST OTHER LARGE BANKS IN THE REGION MICHAEL VASILY CHIEF FINANCIAL OFFICER SAYS THE BANK IS ADEQUATELY RESERVED 9304220090 930422 HIGHTECH PLAY AT&T IS TRYING HARD TO GET A MAJOR ROLE IN MULTIMEDIA FUTURE ITS GLOBAL NETWORK AND ARRAY OF PRODUCTS MAY GIVE IT BIG GAINS AS TRAFFIC GROWS BUT FIRM FACES MANY RIVALS BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL BIT BY BIT AND FIBER BY FIBER AMERICAN TELEPHONE & TELEGRAPH CO IS PREPARING FOR THE WORLD'S MULTIMEDIA FUTURE IN THAT MUCHANTICIPATED BUT STILLEVANESCENT REVOLUTION OFFICE WORKERS SUPPOSEDLY WOULD BE ABLE TO BOTH SEE AND SHARE DATA WITH COLLEAGUES A WORLD AWAY WHILE CONSUMERS COULD MAKE PHONE CALLS CHECK MOVIE LISTINGS SHOP GET MUSIC OR SEND SCRIBBLED MESSAGES PERHAPS ALL FROM A SINGLE POCKETSIZED DEVICE THAT COULD ALSO RECOGNIZE SPEECH KIDS WOULD PLAY INTERACTIVE GAMES ACROSS TOWN OR ACROSS A CONTINENT A HOST OF COMPANIES LARGE AND SMALL ARE STRIVING FURIOUSLY TO CATCH THIS WAVE FEW MAY BE IN A BETTER POSITION TO DO SO THAN AT&T IN ADDITION TO MOVING INTO CELLULAR TELEPHONES AT&T HAS GAINED A FOOTHOLD IN ADVANCED MICROCHIPS COMPUTER SOFTWARE ELECTRONIC MAIL AND STARTREKSTYLE POCKET COMMUNICATORS LAST YEAR IT WAS THE FIRST COMPANY TO SHIP A VIDEOPHONE IT ALSO HAS AN OFFERING IN THE HIGHDEFINITIONTELEVISION SWEEPSTAKES DEVELOPED WITH ZENITH ELECTRONICS CORP AT&T IS SMACK IN THE MIDDLE OF EVERY POSITIVE TREND IN HIGHTECH WORLDWIDE SAYS JACK GRUBMAN AN ANALYST AT PAINEWEBBER INC AT THE AT&T ANNUAL MEETING YESTERDAY IN BOSTON CHAIRMAN ROBERT ALLEN TOLD HOW THE COMPANY HOPES TO DOMINATE THE CONVERGENCE OF COMMUNICATIONS COMPUTERS AND VIDEO TECHNOLOGIES BY CROSSBREEDING NEW PRODUCTS FROM ITS VARIOUS BUSINESS UNITS IT WILL SHORTLY LAUNCH AN AD CAMPAIGN BUILT AROUND THIS FUTURISTIC VISION ALTHOUGH AT&T FACES FIERCE COMPETITION IN ALL THESE FIELDS THE WELLFINANCED COMPANY THROUGH ITS OWN RESEARCH PLUS INVESTMENTS IN STARTUPS AND ALLIANCES WITH SEASONED PLAYERS IS ASSEMBLING A PORTFOLIO THAT MAY MAKE IT DIFFICULT FOR ANY VOICE TV SIGNAL OR COMPUTER MESSAGE TO MOVE THROUGH THE GLOBAL COMMUNICATIONS NET WITHOUT AT&T BEING SOMEHOW INVOLVED JUST ABOUT ANYTHING AT&T DOES TO ENCOURAGE THE USE OF NEW COMMUNICATIONS DEVICES AND SERVICES ENDS UP STRENGTHENING ITS OWN HAND AND MOST TRAFFIC EVENTUALLY FLOWS OVER THE AT&T NETWORK BY FAR THE WORLD'S LARGEST SYSTEM WITH MORE THAN 80 MILLION CUSTOMERS MAKING MORE THAN 40 BILLION IN PHONE AND DATA CALLS A YEAR FOR EXAMPLE THE COMPANY'S GIANT EQUIPMENT ARM AT&T NETWORK SYSTEMS IS EQUIPPING CABLETV COMPANIES AS THEY BEGIN TO CONVERT THEIR ONEWAY TV NETWORKS INTO TWOWAY INTERACTIVE COMMUNICATIONS SYSTEMS TIME WARNER CABLE RECENTLY ORDERED A POWERFUL NEW SWITCH CALLED AN ATM FOR ASYNCHRONOUS TRANSFER MODE FROM AT&T THE SWITCH WILL BE USED AS A TRAFFIC EXCHANGE IN A FIBEROPTIC ELECTRONIC SUPERHIGHWAY THE TIME WARNER INC UNIT IS BUILDING IN THE ORLANDO FLA AREA BUT TIME WARNER IS MORE THAN JUST AN EQUIPMENT CUSTOMER AT&T COULD HANDLE THE TRAFFIC GENERATED WHEN ORLANDO CUSTOMERS START COMMUNICATING WITH CABLE CUSTOMERS WHO USE TIME WARNER'S SUPERHIGHWAYS IN OTHER PARTS OF THE COUNTRY AND IN THE FUTURE AT&T MIGHT USE THE CABLE NETWORKS TO GAIN DIRECT ACCESS TO CABLE CONSUMERS THROUGH COMBINATION COMPUTERTELEVISION COMMUNICATORS IN THEIR HOMES AS AN ALTERNATIVE TO THE MORE EXPENSIVE TELEPHONE LINES OPERATED BY THE REGIONAL BELL COMPANIES FROM ONE END TO THE OTHER THERE'S A MULTIMEDIA MASTER PLAN AT AT&T AND IT STRETCHES INTO THE NEXT CENTURY SAYS MICHAEL HOMER AN EXECUTIVE OF GO CORP AT&T IS A BACKER OF GO A FOSTER CITY CALIF PIONEER IN SOFTWARE TO LET HANDHELD COMPUTERS KNOWN AS PERSONAL COMMUNICATORS OR POCKET COMMUNICATORS UNDERSTAND COMMANDS SCRIBBLED WITH AN ELECTRONIC PEN THIS NEW KIND OF DEVICE PORTABLE AND CONTAINING BOTH COMPUTER AND COMMUNICATIONS FUNCTIONS IS UNDER DEVELOPMENT BY COMPANIES LIKE APPLE COMPUTER INC AT&T ALREADY OFFERS ONE MADE BY AN AT&TFINANCED STARTUP CALLED EO INC SAYS GO'S MR HOMER AT&T HAS THE COMMUNICATORS THE CHIPS THAT MAKE THE COMMUNICATORS WORK THE SOFTWARE AND A COMMUNICATIONS NETWORK THAT REACHES EVERYWHERE WHAT AT&T DOESN'T HAVE IT IS SEEKING TO ACQUIRE ITS PLAN TO BUY 33 OF MCCAW CELLULAR COMMUNICATIONS CO IS EXPECTED TO CLOSE THIS FALL IT HAS ALREADY BOUGHT A STAKE IN GENERAL MAGIC INC AN APPLE OFFSHOOT THAT IS TRYING TO DEVISE STANDARDIZED SOFTWARE THAT WILL ALLOW THE NEW PORTABLE COMMUNICATORS TO TALK OVER DIFFERENT NETWORKS MAGIC'S OTHER BACKERS INCLUDE MOTOROLA INC JAPAN'S SONY CORP AND MATSUSHITA ELECTRIC INDUSTRIAL CORP AND EUROPE'S PHILIPS ELECTRONICS NV IN SOFTWARE AT&T IS DOING WHAT IT CAN TO UNDERCUT DOMINANT MICROSOFT CORP BY MANEUVERING WITH PLAYERS SUCH AS NOVELL INC AT&T'S UNIX OPERATINGSYSTEM SOFTWARE IS AT THE HEART OF MANY COMPUTERS LINKED INTO COMMUNICATIONS NETWORKS WHEN AT&T DECIDED TO SELL THE OPERATION THAT MAKES UNIX IT CHOSE NOVELL BECAUSE IT'S TIME WE HAVE A MAJOR OPERATING SYSTEM IN THE MARKET THAT'S IN THE HANDS OF A COMPANY OTHER THAN MICROSOFT SAYS ROBERT KAVNER AN AT&T GROUP EXECUTIVE ANSWERING THE CHALLENGE FROM AT&T AND OTHERS MICROSOFT RECENTLY ANNOUNCED A BROAD TECHNOLOGYSHARING PACT WITH COMPAQ COMPUTER CORP TO DEVELOP PENBASED COMPUTERS AND MOBILE MACHINES IN COMPUTER CHIPS AT&T HAS AN OFFERING CALLED THE HOBBIT FOR USE IN FUTURE POCKET COMMUNICATORS A CHIP THE COMPANY CLAIMS HAS FOUR TIMES THE PROCESSING POWER PER WATT OF INTEL CORP'S 486DX CHIP THIS EFFICIENCY HELPS PROLONG BATTERY LIFE INTEL DECLINES TO COMMENT ON THE HOBBIT BUT SEVERAL COMPANIES HAVE ALREADY AGREED TO BUILD HOBBITUSING MACHINES JAPAN'S MATSUSHITA NEC CORP AND TOSHIBA CORP OUR STRATEGIC PLAN CALLED FOR EIGHT PARTNERS BY THE END OF THE YEAR AND WE ALREADY HAVE FIVE SAYS WILLIAM WARWICK HEAD OF AT&T MICROELECTRONICS AS AT&T PURSUES ITS MULTIMEDIA DREAMS ITS CHIEF LONGDISTANCE RIVAL MCI COMMUNICATIONS CORP IS HOLDING DISCUSSIONS WITH CABLETV GIANTS BEFORE AT&T LANDS THEM AS PARTNERS PHONE CUSTOMERS MIGHT SOMEDAY GET A COMBINATION OF TV SERVICE FROM TIME WARNER AND TELECOMMUNICATIONS INC WITH A LONGDISTANCE COMPANY SUCH AS MCI OR AT&T FOR NATIONWIDE INTERACTIVE VIDEO SERVICE AT&T IS A LONG WAYS FROM LOCKING UP ANYTHING SAYS MCI'S FEISTY PRESIDENT DANIEL AKERSON ABROAD RIVAL BRITISH TELECOMMUNICATIONS PLC WILL SPEND MORE THAN 1 BILLION IN THE NEXT FEW YEARS TO BUILD CYCLONE A MULTIMEDIA VOICE DATA AND VIDEO DIGITALTRANSMISSION NETWORK CERTAIN TO DRAW SOME TRAFFIC FROM AT&T FOREIGN COMMUNICATIONSEQUIPMENT MAKERS POSE FORMIDABLE COMPETITION TOO IN TELEPHONES SONY AND MATSUSHITA PANASONIC ARE DELUGING THE MARKET WITH CORDLESS PHONES THAT THREATEN AT&T'S LEAD AND COULD POSITION THEM AS KEY SUPPLIERS OF POCKETSIZED MULTIMEDIA COMMUNICATORS THERE ARE PEOPLE IN THE DEUTSCHE BUNDESPOST GERMANY'S PHONE MONOPOLY WHO DON'T WANT TO BUY AT&T EQUIPMENT BECAUSE THEY CONSIDER AT&T A COMPETITOR IN SERVICES SAYS RUEDIGER HAUSMANN OF SIEMENS AG GERMANY'S ELECTRONICEQUIPMENT GIANT WHICH HAS A SEAT ON THE BUNDESPOST BOARD OTHERS WELCOME AT&T'S MULTIMEDIA PROSPECTS AT&T IS GOING TO CHANGE THE WORLD WE CAN LEARN A LOT FROM THEM SAYS MARIEMONIQUE STECKEL PRESIDENT OF THE US SUBSIDIARY OF FRANCE TELECOM THE FRENCH NATIONAL TELEPHONE MONOPOLY ALL THE COMPANIES ARE PLAYING IN A 900 BILLION GLOBAL INFORMATION MARKET THAT AT&T EXPECTS TO HIT 14 TRILLION BY 1996 THE CHATTERING GENERATED IN THIS MARKET IS CERTAIN TO SPARK A SURGE IN COMMUNICATIONS TRAFFIC MUCH OF IT PASSING THROUGH AT&T THE GLOBAL NETWORK IS OUR CORE BUSINESS MR ALLEN SAYS MANY PEOPLE LITERALLY LIVE ON THE NETWORK WITH ELECTRONIC MAIL AND MAILBOXES TO GET THEIR MESSAGES OUR TRAFFIC WILL ACCELERATE AT A DOUBLEDIGIT PACE INDEFINITELY THAT SHOULD ENABLE AT&T TO EXTEND RECENT GAINS IN ITS PROFITABILITY HELPED BY COST CUTTING AND A ROBUST INTERNATIONAL EQUIPMENT BUSINESS ITS EARNINGS HAVE BEEN SOARING DESPITE MORE THAN 25 BILLION IN CHARGES FOR RESTRUCTURING AND PLANT IMPROVEMENT EXPENSES SINCE 1984 AND CASH FLOW NET INCOME PLUS DEPRECIATION GREW 6 TO 735 BILLION IN 1992 AT&T IS COUNTING ON AT&T BELL LABORATORIES TO PULL NEW TECHNOLOGICAL RABBITS OUT OF THE RESEARCH HAT AT THE LABS LINN MOLLENAUER AND HIS TEAM OF FIBEROPTIC RESEARCHERS ARE DEVELOPING PERFECT LIGHT WAVES CALLED SOLITONS THAT CAN INCREASE BY TWENTYFOLD THE AMOUNT OF INFORMATION RACING THROUGH AN OPTICAL FIBER WHEN DEPLOYED BY THE END OF THE DECADE SUCH SYSTEMS SHOULD MAKE AT&T'S GLOBAL FIBEROPTIC NETWORK THE SINGLE MOST POWERFUL CARRIER OF VOICE DATA AND VIDEO TRAFFIC AT&T EMPLOYS 18000 SOFTWARE DESIGNERS INCLUDING 3000 AT ITS NCR COMPUTER UNIT MICROSOFT HAS 2000 THIS DISPARITY DOESN'T FAZE NATHAN MYHRVOLD MICROSOFT'S VICE PRESIDENT OF ADVANCED TECHNOLOGY AND BUSINESS DEVELOPMENT HOWEVER AT&T HASN'T BEEN A FORCE IN ANYTHING WE'RE INVOLVED IN HE SAYS NOTING AT&T'S MYRIAD DIFFICULTIES AND LOST BILLIONS IN THE COMPUTER BUSINESS AT&T ALWAYS HAD CHINESE ARMIES OF SOFTWARE DEVELOPERS THE TELECOMMUNICATIONS COMPANY'S INTERESTS IN EXPANDING MULTIMEDIA SERVICES HE ADDS ARE QUITE COMPATIBLE WITH OURS TO PREPARE FOR THE MULTIMEDIA REVOLUTION AT&T IS SPENDING MORE MULTIBUCKS IN 1992 ITS INTERNAL AND OUTSIDE INVESTMENTS ROSE 28 TO 82 BILLION EXCLUDING ITS 75 BILLION STOCKSWAP MERGER WITH COMPUTER MAKER NCR IN THE PAST FIVE YEARS AT&T HAS PRACTICALLY REBUILT ITS ENTIRE LONGDISTANCE NETWORK PUTTING IN DIGITAL SWITCHES FIBEROPTIC LINES AND HIGHCAPACITY TRANSMISSION GEAR AT A COST OF ALMOST 20 BILLION AT&T PLANS TO PAY 38 BILLION FOR ITS STAKE IN MCCAW CELLULAR THE NATION'S LARGEST WIRELESS COMMUNICATIONS COMPANY CHAIRMAN CRAIG MCCAW SAYS HE HAS DECIDED TO RENAME HIS SERVICE AT&T AFTER SEEING A SURVEY IN WHICH CUSTOMERS SAID AT&T WAS THE BEST CELLULAR PHONE COMPANY EVEN THOUGH IT WASN'T EVEN IN CELLULAR IT'S AN INCREDIBLE BRAND HE SAYS AT&T PLANS TO LINK MCCAW'S TWO MILLION CELLULARPHONE CUSTOMERS WITH ITS LONGDISTANCE NETWORK AND ITS GLOBAL ELECTRONICMAIL SYSTEM SAYS GORDON BRIDGE PRESIDENT OF AT&T EASYLINK SERVICES THE WORLD'S LARGEST EMAIL NETWORK FOR BUSINESSES EVENTUALLY AT&TMCCAW'S CELLULARPHONE CUSTOMERS SHOULD BE ABLE TO USE POCKET COMMUNICATORS THAT CAN ALSO TRANSMIT AND RECEIVE WRITTEN MESSAGES OR TAP A DATABASE OF RESTAURANTS OR CATALOGS SUCH MANEUVERS HORRIFY THE LOCAL BABY BELL PHONE COMPANIES BORN WHEN AT&T WAS BROKEN UP A DECADE AGO ISN'T IT SORT OF LIKE PUTTING HUMPTY DUMPTY BACK TOGETHER ASKS JOHN L CLENDENIN CHAIRMAN OF BELLSOUTH CORP IN ATLANTA THERE ARE NO RESTRICTIONS REALLY ON WHAT AT&T CAN DO HE FRETS THAT AT&T WILL USE CELLULARPHONE SYSTEMS TO SIPHON TRAFFIC AWAY FROM LOCAL PHONE COMPANIES HIS COMPANY AND OTHER BABY BELLS CANNOT LEGALLY PROVIDE LONGDISTANCE SERVICES AND BUILD PHONE EQUIPMENT BECAUSE OF THEIR LOCAL SERVICE MONOPOLIES HE NOTES THAT WITH MCCAW'S WIRELESS SERVICE MANY CONSUMERS WON'T NEED A BELLSOUTH PHONE LINE TO SEND A CALL OR DATA THROUGH AT&T THREE OF BELLSOUTH'S SISTER COMPANIES NYNEX CORP SOUTHWESTERN BELL CORP AND BELL ATLANTIC CORP HAVE ASKED THE FEDERAL COMMUNICATIONS COMMISSION TO INVESTIGATE WHETHER AT&T'S MCCAW DEAL WOULD CREATE A DOMINANT NATIONWIDE VERTICALLY INTEGRATED TELECOMMUNICATIONS SERVICES COMPANY THE SAME CORPORATE STRUCTURE THAT GOVERNMENT TRUSTBUSTERS DISMANTLED THE FCC HAS YET TO READ THE COMPLAINT FILED IN LATE JANUARY IT'S STILL IN MY INBOX SAYS FCC ATTORNEY TERRENCE REIDELER NYNEX IS INVOLVED IN A MULTIMEDIA PROJECT WITH DOW JONES & CO PUBLISHER OF THE WALL STREET JOURNAL EVEN GREATER FEARS THAN THE BABY BELLS' ARE VOICED BY BERTIL THORNGREN SENIOR VICE PRESIDENT OF CORPORATE STRATEGY AT SWEDEN'S PHONE COMPANY TELEVERKET AT&T'S MOVES POINT IN THE DIRECTION OF A NEW MONOPOLY HE SAYS MR ALLEN DISMISSES SUCH WORRIES IN A PUFF OF CIGAR SMOKE COMPETITORS WILL CRY ABOUT ANYTHING HE SAID IN AN INTERVIEW A FEW WEEKS BEFORE YESTERDAY'S ANNUAL MEETING BUT THE POORLITTLEME PHENOMENON' ISN'T RELEVANT ANYMORE I CAN'T BE WORRIED ABOUT ANTITRUST MATTERS WHEN COMPETITION IS FIERCE OUR CHALLENGE IS TO STAY AHEAD MR ALLEN CONTENDS THAT AT&T ITSELF IS IN DANGER OF LOSING THE GLOBAL BATTLE AGAINST SUCH COMMUNICATIONS GIANTS AS BRITISH TELECOM FRANCE'S ALCATELALSTHOM AND JAPANESE SUPPLIERS TO EXPAND ITS NETWORK OUTSIDE THE US AT&T IS BEGINNING TO STRIKE DEALS WITH FOREIGN CARRIERS AND PUNISHING THOSE THAT DON'T SHARE ITS VISION WHEN STENTOR THE LONGDISTANCE CONSORTIUM OF CANADA'S NATIONAL CARRIERS AGREED RECENTLY TO USE MCI'S SOFTWARE TECHNOLOGY IN ITS NETWORK AT&T RETALIATED BY FINANCING STENTOR'S UPSTART COMPETITOR UNITEL THAT WILL GIVE OTHER CARRIERS SECOND THOUGHTS ABOUT MAKING NEW ARRANGEMENTS WITH AT&T'S RIVALS MR ALLEN SAYS ADDING WE'RE GOING TO DO WHAT WE HAVE TO DO TO PROTECT OUR MARKET SHARE AT&T ALSO WILL TRY TO GRAB BUSINESS AS OTHER COUNTRIES EXPAND THEIR COMMUNICATIONS NETWORKS MEXICO CHINA AND EAST EUROPEAN COUNTRIES ARE PUTTING BILLIONS OF DOLLARS INTO REWIRING THEIR PHONE SYSTEMS AS THEIR NETWORKS IMPROVE MUCH OF THEIR INTERNATIONAL TRAFFIC WILL FLOW TO AT&T THIS MAKES A RECENT ACCORD WITH CHINA TO BUILD AND SELL AT&T EQUIPMENT A PIVOTAL EVENT IN OUR INTERNATIONAL EXPANSION SAYS AT&T VICE CHAIRMAN RANDALL TOBIAS WHO NEGOTIATED THE DEAL WE COULD HAVE A GREATER SHARE OF THE CHINESE MARKET THAN WE NOW HAVE IN THE US ALL THIS IS QUITE A CHANGE FROM A FEW YEARS AGO WHEN IT LOOKED AS IF AT&T WOULD MISS THE MULTIMEDIA BONANZA AFTER ITS BREAKUP THE COMPANY HAD SEVERAL FIEFDOMS LONGDISTANCE TELECOMMUNICATIONS EQUIPMENT BELL LABS THAT BARELY COOPERATED ON MANUFACTURING RESEARCH AND DEVELOPMENT AND SELLING MANY OF ITS PRODUCTS NEVER MADE IT TO MARKET ON TIME TO MAKE AT&T A TOUGHER COMPETITOR MR ALLEN CARVED IT INTO 22 INDEPENDENT BUSINESSES HE ALSO BROUGHT IN OUTSIDE MANAGERS SUCH AS ALEX MANDL CHAIRMAN OF SEALAND SERVICES INC AS AT&T'S CHIEF FINANCIAL OFFICER AND JERRE STEAD FORMER CHAIRMAN OF SQUARE D CO TO HEAD AT&T'S LOSSPLAGUED OFFICESYSTEMS BUSINESS MR STEAD RECENTLY BECAME NCR'S CHIEF EXECUTIVE WITH ORDERS TO TURN IT INTO A MULTIMEDIA MARKETING GIANT AT&T MAY NOT GET THE FULL BENEFITS OF ITS NEW FOCUS UNTIL THE END OF THE DECADE HOWEVER COMMUNICATIONS NETWORKS ARE COMPLEX AND THE NEW SERVICES THAT WILL DRIVE TRAFFIC GROWTH ARE STILL EVOLVING IT'S NOT A SLAM DUNK MR ALLEN CONCEDES BUT I THINK WE'RE ON THE RIGHT COURSE 9304220089 930422 FREEDOM NEWSPAPERS JOINS TV COMPANY ON WANTAD NETWORK A WALL STREET JOURNAL NEWS ROUNDUP FREEDOM NEWSPAPERS INC THE PUBLISHER OF THE ORANGE COUNTY CALIF REGISTER SAID IT HAS JOINED FORCES WITH A PRIVATELY HELD DALLAS COMPANY TO DEVELOP AN INTERACTIVE CLASSIFIED ADVERTISING SERVICE UNDER ITS PLAN WITH THE IT NETWORK FREEDOM SAID CUSTOMERS WILL BE ABLE TO CALL UP CLASSIFIED ADS ON A NATIONAL INTERACTIVE TELEVISION NETWORK NOW BEING TESTMARKETED BY IT BY PUNCHING BUTTONS ON THEIR REMOTE CONTROLS FOR EXAMPLE VIEWERS COULD BROWSE THROUGH COLOR PICTURES OF USED CARS FOR SALE AND MIGHT EVEN BE ABLE TO ORDER THE CARS BY TELEPHONE IT'S INTERACTIVE CHANNEL USES EXISTING CABLE AND TELEPHONE LINES AND IS BEING TESTED IN 40 HOMES IN BIRMINGHAM MICH A SUBURB OF DETROIT THE TWO COMPANIES SAID THEY EXPECT TO HAVE THE INTERACTIVE CLASSIFIED SERVICE READY FOR NATIONAL USE BY EARLY NEXT YEAR AS PART OF THE AGREEMENT FREEDOM A PRIVATELY HELD COMPANY BASED IN IRVINE CALIF ALSO SAID IT HAS MADE A SIGNIFICANT INVESTMENT IN IT TERMS OF THAT TRANSACTION WEREN'T DISCLOSED 9304220088 930422 MAGAZINE INDUSTRY HONORS NEWSWEEK AND HARPER'S BAZAAR NEW YORK WASHINGTON POST CO'S NEWSWEEK AND HEARST CORP'S HARPER'S BAZAAR WERE BIG WINNERS AT THE 1993 NATIONAL MAGAZINE AWARDS YESTERDAY NEWSWEEK WON AN AWARD FOR GENERAL EXCELLENCE AMONG THE LARGEST MAGAZINES THOSE WITH CIRCULATION OF MORE THAN ONE MILLION IT ALSO WON AN AWARD FOR SINGLETOPIC ISSUES FOR ITS SPECIAL PRESIDENTIAL ELECTION ISSUE HARPER'S BAZAAR UNDER NEW BRITISH EDITOR ELIZABETH TILBERIS WON AWARDS FOR PHOTOGRAPHY AND DESIGN HEARST'S GOOD HOUSEKEEPING ALSO WON AN AWARD FOR PERSONAL SERVICE FOR ITS SECTION CALLED THE BETTER WAY OTHER WINNERS FOR GENERAL EXCELLENCE INCLUDED LINGUA FRANCA FOR MAGAZINES WITH CIRCULATION UNDER 100000 HACHETTE SA'S AMERICAN PHOTO WON AN AWARD FOR GENERAL EXCELLENCE FOR MAGAZINES WITH CIRCULATIONS RANGING FROM 100000 TO 400000 MORTIMER ZUCKERMAN'S THE ATLANTIC WON THE GENERAL EXCELLENCE AWARD FOR MAGAZINES WITH CIRCULATION BETWEEN 400000 AND ONE MILLION CONDE NAST'S THE NEW YORKER WON AN AWARD FOR FEATURE WRITING UNDER NEW EDITOR TINA BROWN AND ALSO WON AN AWARD FOR ITS FICTION UNDER HER PREDECESSOR ROBERT GOTTLIEB OTHER WINNERS INCLUDED PHILADELPHIA MAGAZINE IN THE SPECIAL INTERESTS CATEGORY FOR AN ARTICLE ON SIMPLE PLEASURES IEEE SPECTRUM IN THE REPORTING CATEGORY ON NUCLEAR WEAPON SAFEGUARDS AND THE FAMILY THERAPY NETWORKER FOR ITS THREEPART FEATURE ON COMMUNITY MENTAL HEALTH THE AMERICAN LAWYER MAJORITY OWNED BY TIME WARNER INC WON AN AWARD FOR ESSAYS & CRITICISM FOR ITS VIEW ON THE JURY'S DECISION IN THE FIRST RODNEY KING TRAIL 9304220087 930422 LEISURE & ARTS TV DRIVING TIPS A CATALOG OF NATURAL DISASTERS BY DOROTHY RABINOWITZ GENERAL MOTORS CORP SPONSORS A SPECIAL ON DRIVING AND ACCIDENT AVOIDANCE VIEWERS GET MULTIPLECHOICE QUESTIONS ABOUT FOR INSTANCE WHAT SPLITSECOND CHOICE TO MAKE WHEN CONFRONTING A CAR IN THE WRONG LANE HEADING RIGHT AT THEM IN ALL THERE ARE 20 QUESTIONS ON THE MOST DANGEROUS COMMON DRIVING HAZARDS ALONG WITH SOME COMMENDABLY LUCID INFORMATION ABOUT HOW TO SURVIVE THEM THERE IS OF COURSE SOMETHING INTRINSICALLY ENTERTAINING IN A HAIRRAISING WAY ABOUT SUCH A PROGRAM NEVERTHELESS THE PRODUCERS SEEM TO HAVE FOUND IT NECESSARY TO ADD TO THE FUN BY LITTERING THE LANDSCAPE HERE WITH AN ASSORTMENT OF MINOR CELEBRITIES CONFIDING THEIR NEARDEATH EXPERIENCES ON THE ROAD AND DELIVERING HOMILIES ON CAUTION ACCELERATE PAST THESE HAZARDS WITHOUT RUBBERNECKING AND WATCH THE REST LOS ANGELES TIMES JOURNALIST ELIZABETH MEHREN PAMELA REED AND HER HUSBAND NEW YORK TIMES REPORTER FOX BUTTERFIELD MICHAEL MORIARTY ARE THE CENTRAL FIGURES IN THIS FACTBASED MOVIE ABOUT THEIR INFANT'S STRUGGLE FOR SURVIVAL BORN AFTER LESS THAN SIX MONTHS IN UTERO THE BABY'S CHANCES ARE SLENDER THE EFFORTS TO SAVE HER HEROIC THE MAIN REASON FOR THE FILM'S MODEST BUT UNDENIABLE EMOTIONAL PUNCH IS MS REED'S PERFORMANCE AS A MOTHER FEROCIOUSLY INTENT ON HER CHILD'S SURVIVAL THIS DOCUMENTARY BILLS ITSELF AS A NATURAL DISASTERS THEME SHOW NOTHING IF NOT LIVELY IT TRACKS CATASTROPHE FROM HURRICANE ANDREW TO THE SHETLANDS OIL SPILL PROVIDES HARROWING RECITALS FROM SURVIVORS OF LIGHTNING STRIKES AND FINALLY IT DELIVERS A LOOK INTO THE ABYSS AT EARTHQUAKES THIS INTIMATE BIOGRAPHICAL SKETCH ASSEMBLES A CURIOUS AND VARIED ASSORTMENT OF COMMENTATORS INCLUDING THE UBIQUITOUS SHELBY FOOTE WRITER AND HISTORIAN HERE TOO IS IRIS MURDOCH TESTIFYING TO THE GENIUS OF THE AUTHOR OF REMEMBRANCE OF THINGS PAST SHE IS IN GOOD COMPANY VIRGINIA WOOLF TOO WORSHIPS AT THIS SHRINE AS THE PROGRAM MAKES CLEAR MY GREAT ADVENTURE THE AUTHOR OF TO THE LIGHTHOUSE WROTE IS REALLY PROUST WHAT IS LEFT TO BE WRITTEN AFTER THAT SUCH IS THE TONE OF THIS DOCUMENTARY AN INVARIABLY RICH IF ON OCCASION PANTINGLY MELODRAMATIC VIEW OF THE CHRONICLER OF FRENCH SOCIETY BEFORE THE GREAT WAR FILMMAKERS WILLIAM C CARTER AND GEORGE WOLFE CAPTURE WITH STILLS ARCHIVAL FOOTAGE AND DIARIES THE SPIRIT OF HIS AGE A HIGHLY SUCCESSFUL AND IDEALISTIC CONGRESSWOMAN BUSY WORRYING ABOUT THE ENVIRONMENT FAILS TO NOTICE IMPENDING TROUBLE CLOSER TO HOME THAT TROUBLE NAMELY IS THAT BOTH HER PREGNANT DAUGHTER AND SONINLAW ALSO HER CAMPAIGN MANAGER ARE BIGTIME DRUG USERS THEIR BABY ARRIVES IN THE WORLD ADDICTED TO COCAINE WHAT WITH THE SUBJECTS OF DRUGS MOTHERHOOD VS CAREER AND NOT LEAST THE ADDICTED INFANT THEME ALL STAPLES OF YOUR STANDARD TVMOVIE MEDIOCRITY OF THE WEEK A VIEWER MIGHT HAVE REASON TO SUSPECT THIS IS FILM TO AVOID IN FACT THIS HALLMARK HALL OF FAME PRESENTATION COPRODUCED BY JOANNE WOODWARD TURNS OUT TO BE ONE OF THE BEST TELEVISION MOVIES OF THE SEASON IT BOASTS FOR ONE THING A STRING OF FINE PERFORMANCES CHIEF AMONG THEM THAT OF MS WOODWARD HERSELF IN A PORTRAYAL OF SURPASSING SUBTLENESS AND DEPTH WHAT MS WOODWARD DOES HERE WITH A STOCK CHARACTER THE AMBITIOUS PROFESSIONAL WOMAN IS PLAIN REMARKABLE LAURA LINNEY IN TURN DISTINGUISHES HERSELF IN THE ROLE OF THE CONGRESSWOMAN'S DAUGHTER THE SCRIPT BY NINA SHENGOLD DIRECTED BY MICHAEL TOSHIYUKI UNO IS WELL ABOVE STANDARD THE MORAL OF THIS SUCCESSFUL FILM IS THAT THE TALENT COUNTS 9304220086 930422 MARKETING & MEDIA MULTIMEDIA'S GRIMES IS CEO AN ADDED POST GREENVILLE SC MULTIMEDIA INC SAID IT NAMED J WILLIAM GRIMES WHO IS PRESIDENT AND WAS FORMERLY CHIEF OPERATING OFFICER OF THE COMPANY TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER AS CHIEF EXECUTIVE MR GRIMES 52 YEARS OLD SUCCEEDS WALTER E BARTLETT 65 WHO REMAINS CHAIRMAN THE MEDIA COMPANY PRODUCES TV PROGRAMMING INCLUDING THE SYNDICATED DONAHUE AND SALLY JESSY RAPHAEL SHOWS THE COMPANY ALSO PUBLISHES 11 DAILY AND 49 NONDAILY NEWSPAPERS HAS INTERESTS IN RADIO AND TV STATIONS AND OPERATES MORE THAN 125 CABLE TV SYSTEMS MR GRIMES JOINED MULTIMEDIA AS VICE PRESIDENT CORPORATE GROUP EXECUTIVE IN AUGUST 1991 LAST APRIL HE WAS ELECTED PRESIDENT CHIEF OPERATING OFFICER AND A DIRECTOR BEFORE JOINING MULTIMEDIA MR GRIMES HAD SERVED AS PRESIDENT AND CEO OF SPORTS CABLE CHANNEL ESPN A UNIT OF CAPITAL CITIES/ABC INC AND LATER HELD THE SAME TITLES FOR UNIVISION HOLDINGS INC THE SPANISHSPEAKING COMMUNICATIONS COMPANY MULTIMEDIA'S POST OF CHIEF OPERATING OFFICER REMAINS VACANT ALSO MICHAEL C BURRUS EXECUTIVE VICE PRESIDENT OF MULTIMEDIA CABLEVISION CO WAS NAMED PRESIDENT OF THE DIVISION HE SUCCEEDS DONALD D SBARRA WHO WAS NAMED CHAIRMAN OF MULTIMEDIA CABLEVISION 9304220085 930422 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG SOMEDAY WE MAY ALL BE CRUISING DOWN THE INFORMATION HIGHWAY DRIVING A VAST ARRAY OF INTERACTIVE MULTIMEDIA PROGRAMS ON OUR TELEVISIONS THESE PROGRAMS WILL CONVEY KNOWLEDGE AND ENTERTAINMENT THROUGH VIDEO AUDIO AND TEXT WE WILL CONTROL AND CUSTOMIZE BY USING A SIMPLE REMOTE CONTROL BUT THIS ROAD TRIP WON'T START ANYTIME SOON DESPITE A RECENT SPATE OF BREATHLESS MEDIA COVERAGE ONE REASON IS THAT COMPUTER PROGRAMMERS PRINT PUBLISHERS AND ENTERTAINMENT PRODUCERS ARE STILL STRUGGLING TO JOINTLY PRODUCE INTERACTIVE MULTIMEDIA PROGRAMMING WORTHY OF THE BILLIONS OF DOLLARS IN CABLING AND ELECTRONICS BEING INSTALLED TO CARRY IT THEIR MAIN PROVING GROUND TODAY IS THE EXPLODING NUMBER OF PERSONAL COMPUTERS EQUIPPED TO PLAY CDROM DISKS WHICH CAN STORE THE LARGE VIDEO AND AUDIO FILES THAT INTERACTIVE MULTIMEDIA PROGRAMS REQUIRE A FLOOD OF SUCH DISKS HAS COME OUT IN RECENT MONTHS TAKEN TOGETHER THE LATEST CROP SHOWS A FEW THINGS FIRST THE STUFF IS GETTING BETTER AS HOLLYWOOD PRODUCTION VALUES CREEP IN SECOND AS ALWAYS SUCH PRODUCTION VALUES SOMETIMES CROWD OUT JOURNALISTIC QUALITY THIRD MANY OF THE MOST AMBITIOUS DISKS SEEM TO BE SHOWING UP FIRST IN THE APPLE MACINTOSH MARKET NOT THE MUCH LARGER IBMCOMPATIBLE MARKET FINALLY THE BIGGEST COMPANIES DON'T ALWAYS DO THE BEST WORK HERE'S A LOOK AT SOME OF THE MOST INTERESTING TITLES TO CROSS MY DESK RECENTLY EACH COSTS UNDER 100 IN DISCOUNT STORES AND CATALOGS CLINTON A PORTRAIT OF VICTORY TIME WARNER PUBLISHED A CONVENTIONAL BOOK OF GOOD BLACKANDWHITE BEHINDTHESCENES PHOTOS OF THE PRESIDENT'S 1992 CAMAPAIGN BY THE VETERAN TIME MAGAZINE PHOTOGRAPHER PF BENTLEY BUT THE COMPANY'S MULTIMEDIA ARM WARNER NEW MEDIA BURBANK CALIF HAS BLURRED THE PHOTOJOURNALISM'S IMPACT IN THIS CDROM VERSION BY MIXING IT WITH AN ADORING MELANGE OF HOLLYWOODSTYLE HERO WORSHIP THIS INCLUDES AN OPENING SEQUENCE WITH THE PRESIDENT'S FACE SUPERIMPOSED ON AN AMERICAN FLAG WHILE PATRIOTIC MUSIC ACCOMPANIED BY ONE OF HIS SPEECHES PLAYS IN THE BACKGROUND THERE ARE ALSO LITTLE MOVIES OF SEVERAL CLINTON SPEECHES THE DISK WORKS ON BOTH MACINTOSHES AND IBM'S BUT THE MOVIES PLAY ONLY ON THE MAC SEVEN DAYS IN AUGUST WARNER NEW MEDIA DID MUCH BETTER WITH THIS FIRSTRATE MULTIMEDIA HISTORY OF THE 1961 BERLIN WALL CRISIS WHEN AMERICAN AND SOVIET FORCES NEARLY CLASHED USERS CAN RELIVE THE EVENT DAY BY DAY THROUGH FOOTAGE OF OLD NEWSCASTS A PANEL DISCUSSION OF EXPERTS AND EXCELLENT VIGNETTES OF THE FALLOUTSHELTER CRAZE IN THE US AND DAILY LIFE IN BERLIN GERMANY AND BERLIN WIS INCLUDED ARE EXAMPLES OF 1961 ROCKANDROLL SONGS AND TV SHOWS AND COVERAGE OF THE 1989 FALL OF THE WALL IT'S FOR MACINTOSH ONLY NEWSWEEK INTERACTIVE TIME'S RIVAL HAS TAKEN A DIFFERENT TACK LAUNCHING A QUARTERLY INTERACTIVE MAGAZINE THAT INCLUDES LONG PIECES ON A SPECIAL TOPIC IT'S THE ENVIRONMENT IN THE FIRST ISSUE AS WELL AS ARTICLES FROM NEWSWEEK AND THE WASHINGTON POST WHICH OWNS THE MAGAZINE I FOUND THE THING GENERALLY WELL DONE WITH AN EASYTOUSE COMMAND SYSTEM THAT LETS USERS SWITCH BACK AND FORTH FROM CONTINUOUS NARRATION TO A MODE WHERE TOPICS MAY BE SEARCHED THERE ARE ADS BUT THEY DON'T SHOW UP UNLESS THE USER SELECTS THEM SO FAR THE PRODUCT ONLY WORKS ON SONY'S PORTABLE CDROM PLAYER BUT AN IBMCOMPATIBLE VERSION IS DUE THIS SUMMER AND A MAC VERSION IS LIKELY LATER A HARD DAY'S NIGHT TINY VOYAGER CO SANTA MONICA CALIF WHICH CONSISTENTLY TURNS OUT THE MOST ELEGANT MULTIMEDIA MATERIAL HAS DONE IT AGAIN THIS MACONLY DISK CONTAINS THE COMPLETE 1964 BEATLES MOVIE WITH CAN'T BUY ME LOVE AND OTHER GREAT TUNES INCLUDED ARE THE COMPLETE TEXT OF THE SCRIPT AS WELL AS CRITICAL ESSAYS ON THE FILM THE FAB FOUR AND THE MUSIC ALL OF THESE ARE LINKED SO THAT FOR INSTANCE YOU CAN CLICK ON A SONG TITLE IN THE MIDDLE OF TEXT AND INSTANTLY SEE AND HEAR THE SONG THE MARKET MAY BE LIMITED FOR A PROGRAM THAT PLAYS A BLACKANDWHITE MOVIE IN A SMALL WINDOW ON A MAC BUT THE DISK IS AN ARTISTIC TRIUMPH DINOSAURS AND DINOSAUR ADVENTURE SOFTWARE GIANT MICROSOFT WILL SOON ISSUE DINOSAURS A CDROM PACKED WITH BEAUTIFUL DETAILED DRAWINGS OF THE ANCIENT BEASTS AND SHORT ARTICLES DESCRIBING THEM USERS CAN SEARCH FOR DINOSAUR FACTS THROUGH AN INDEX A TIME LINE OR BY CLICKING ON ICONS THAT RESEMBLE FLINTSTONESSTYLE STONE TABLETS THERE ARE AUDIO CLIPS OF WHAT DINOSAUR ROARS MAY HAVE SOUNDED LIKE BUT THE DISK LACKS ANIMATION AND VIDEO AND I THINK IT PALES NEXT TO DINOSAUR ADVENTURE THE LATEST OFFERING FROM LITTLE KNOWLEDGE ADVENTURE LA CRESCENTA CALIF DINOSAUR ADVENTURE HAS MOVIES OF ROBOT DINOSAUR MODELS IN ACTION PLUS TWO GAMES AND A STORYBOOK FOR KIDS AS WELL AS THE SORT OF STILL PICTURES AND ARTICLES MICROSOFT'S DISK HAS THE TWO PRODUCTS ARE FOR IBMS ONLY THOUGH MICROSOFT PLANS A MAC VERSION MAYO CLINIC FAMILY HEALTH BOOK THIS DISK BY INTERACTIVE VENTURES EAGAN MINN CONTAINS A RICH BODY OF CLEAR MEDICAL ADVICE THAT CAN BE CALLED UP INTERACTIVELY BY THE USER AVAILABLE IN MAC AND IBM VERSIONS IT'S AUGMENTED BY SCORES OF WELLDONE AUDIO CLIPS COLOR IMAGES AND ANIMATIONS ILLUSTRATING COMMON MALADIES AND MEDICAL PROCEDURES NEXT WEEK I'LL COMPARE THREE ELECTRONIC ENCYCLOPEDIAS WHICH ARE POWERFUL LURES TO INDUCE PARENTS TO BUY NEW COMPUTERS AND EVENTUALLY ALL SORTS OF TVTOP GIZMOS THAT CAN SERVE AS ON RAMPS TO THAT INFORMATION HIGHWAY 9304220084 930422 BUSINESS BRIEFS BASF CORP ENDED TALKS TO SELL ITS PREPREGS OR COMPOSITE FABRICS IMPREGNATED WITH RESINS AND STRUCTURAL ADHESIVES BUSINESS TO HEXCEL CORP BURNHAM PACIFIC PROPERTIES INC PURCHASED A RETAIL CENTER IN GILROY CALIF FOR 35 MILLION ICF INTERNATIONAL INC'S ICF KAISER ENGINEERS SUBSIDIARY RECEIVED A 7 MILLION TWOYEAR EXTENSION ON ITS CONSULTING CONTRACT TO TAIPEI TAIWAN FOR THE DEVELOPMENT OF AN 88KILOMETER OR ABOUT 55MILE RAPID TRANSIT SYSTEM EASTMAN KODAK CO COMPLETED THE SALE OF ITS CENTER FOR CREATIVE IMAGING TO PRIVATELY HELD BRACE MANAGEMENT GROUP TERMS WEREN'T DISCLOSED POWELL INDUSTRIES INC'S TRACTION POWER SYSTEMS INC SUBSIDIARY WAS AWARDED A 12 MILLION CONTRACT TO PROVIDE THE ELECTRIC POWER SUBSTATIONS FOR THE DALLAS AREA RAPID TRANSIT LIGHTRAIL STARTER SYSTEM LIBERTY NATIONAL BANCORP INC SIGNED AN AGREEMENT IN PRINCIPLE TO ACQUIRE CLOSELY HELD FIRST FEDERAL SAVINGS BANK IN A STOCK SWAP TERMS WEREN'T DISCLOSED MORRISONKNUDSEN CORP WAS SELECTED TO DESIGN AND BUILD A PART OF A CHEMICAL FACILITY NEAR DECATUR ALA FOR AMOCO CHEMICAL CO A SUBSIDIARY OF AMOCO CORP TERMS WEREN'T DISCLOSED 9304220083 930422 ENTERPRISE BUSINESSES OFFERING PRODUCTS FOR GAYS ARE THRIVING RISE IN ACTIVISM AND PUBLIC ACCEPTANCE OF LIFESTYLES INCREASES DEMAND BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL WHEN CYNTHIA CESNALIS STARTED HER SHOCKING GRAY MAILORDER CATALOG TWO YEARS AGO SHE FIGURED THE GAY CUSTOMERS SHE TARGETED WOULD SNAP UP SUCH OFFERINGS AS LEATHER TRAVEL BAGS AND HOME FURNISHINGS WHAT THEY WANTED INSTEAD WERE GAYPRIDE FLAGS AND JEWELRY DECORATED WITH PINK TRIANGLES AND THE GREEK LETTER LAMBDA BOTH POPULAR GAYRIGHTS SYMBOLS WE'RE CONSTANTLY REORDERING PRIDE FLAGS SAYS MS CESNALIS WHO NOW BUYS THESE BY THE GROSS RATHER THAN THE DOZEN THE THREEFEETBYFIVEFEET FLAGS WITH STRIPES IN RAINBOW COLORS HAVE BECOME COMMON SIGHTS IN KEY WEST FLA PROVINCETOWN MASS SAN FRANCISCO AND ELSEWHERE IDENTIFYING GAYOWNED BUSINESSES AND RESIDENCES ALIKE THEY SAY YES I'M GAY AND I'M NOT AFRAID TO SHOW THIS FLAG SAYS MARK LEHOUILLER WHO RECENTLY BOUGHT A 25 PRIDE FLAG FROM SHOCKING GRAY FOR THE BALCONY OF HIS VICTORIAN HOME IN CHICOPEE MASS AS THE FLAG BOOM SUGGESTS COMPANIES THAT HITCH THEIR FUTURES TO SOCIAL TRENDS NEED TO KEEP PACE WITH THE TREND'S EVOLUTION IF THEY WANT THE BEST RESULTS IN THE LAST DECADE OR SO BUSINESSES FROM TRAVEL AGENCIES TO BOOK STORES THAT TARGET THE GAY MARKET HAVE PROLIFERATED MANY OF THE BUSINESSES HAVE LONG SOLD SOME PRODUCTS DESIGNED TO MAKE AN OUTOFTHECLOSET POLITICAL STATEMENT BUT AS PUBLIC ACCEPTANCE OF OPENLY GAY LIFESTYLES HAS RISEN DEMAND FOR THESE PRODUCTS HAS SOARED IN THE LAST FEW YEARS WITH THE GAY RIGHTS MARCH IN WASHINGTON THIS WEEKEND THE MARKET IS BRISKER THAN EVER RIGHT NOW MOREOVER THE CONTINUING DEBATE ABOUT ALLOWING OPENLY GAY PEOPLE IN THE MILITARY AND RECENT SURVEYS SUGGESTING THAT THE HOMOSEXUAL POPULATION IS SMALLER THAN COMMONLY ASSUMED HAS MADE MANY HOMOSEXUALS FEEL IT IS ALL THE MORE URGENT TO BE AS VISIBLE AS POSSIBLE IF EVER THERE WAS A TIME THIS IS IT SAYS A NEW YORK MANAGEMENT CONSULTANT WHO PLANS TO MARCH IN WASHINGTON MS CESNALIS OF SHOCKING GRAY SAYS DEMAND FOR HER GAYPRIDE PRODUCTS HAS SURGED IN THE LAST WEEK FORCING HER TO COME TO WORK AT 6 AM EACH DAY TO FILL ORDERS SHE ATTRIBUTES THE BUSINESS RISE LARGELY TO THE RELEASE LAST WEEK OF A FEDERALLY FUNDED STUDY THAT FOUND ONLY 11 OF THE MALE POPULATION IDENTIFYING ITSELF AS EXCLUSIVELY HOMOSEXUAL THAT STUDY IS PROMPTING GAY MEN AND LESBIANS TO MAKE THEIR PRESENCE KNOWN SHE SAYS MY OWN RESPONSE TO THE STUDY IS TO BE MORE OUTSPOKEN SHE ADDS MS CESNALIS SAYS HER SAN ANTONIO TEXAS CONCERN HAS GROWN TO A NEARLY 1MILLIONAYEAR BUSINESS IN JUST 18 MONTHS WITH GAYPRIDE PRODUCTS MAKING UP FOR MORE THAN HALF OF ITS REVENUE SALES OF LEATHER CHECKBOOKS WITH PINK TRIANGLES KITES WITH GAYPRIDE LOGOS DEVICES THAT STAMP QUEER ON CURRENCY AND IMITATION MILITARY PINS WITH GAYRIGHTS INSIGNIA ARE ALL ON THE RISE SHE SAYS OTHERS THAT HAVE RECOGNIZED THE DRIVE FOR GAY VISIBILITY ALSO HAVE ENJOYED SOARING SALES UNIVERSAL SPADA INC OF NEW YORK MAKER OF 12 NECKLACES ADORNED WITH METAL RINGS IN THE RAINBOW COLORS OF THE GAY FLAG HAS SEEN ITS REVENUE CLIMB FROM 150000 IN 1991 TO 500000 LAST YEAR SAYS OWNER DAVID SPADA THERE'S A MARKET OUT THERE AND THIS MARKET SPENDS MONEY SAYS THE ENTREPRENEUR WHO PREDICTS SALES OF 750000 THIS YEAR DON'T PANIC DESIGNS INC IN LOS ANGELES PRINTS TSHIRTS WITH SUCH INYOURFACE SLOGANS AS I CAN'T EVEN THINK STRAIGHT AND I'M NOT GAY BUT MY BOYFRIEND IS SHOCKING GRAY SELLS WEDDINGCAKE DECORATIONS WITH SAMESEX PLASTIC COUPLES AND THE BOARD GAMES DIAL GAY FOR MURDER AND MURDER IS A DRAG LOS ANGELES ENTREPRENEUR BERT SWARTZ IS EVEN PEDDLING A GAY BEER CALLED PRIDE AS THE ENTREPRENEURS SEE IT POLITICAL TRENDS CAN ONLY HELP THERE ARE DRAMATICALLY INCREASED NUMBERS OF GAY MEN AND LESBIANS WHO HAVE ASSUMED AN ACTIVIST ROLE SAYS SEAN STRUB PRESIDENT OF STRUBCO INC A MARKETING AGENCY IN NEW YORK TARGETING THE GAY AND LESBIAN COMMUNITY SOME PEOPLE DO THAT BY CONTRIBUTING TO ORGANIZATIONS SOME BY GOING TO DEMONSTRATIONS AND RALLIES AND SOME BY INCORPORATING IT INTO THEIR SHOPPING PATTERNS FOR HIS PART MR STRUB SAYS I BUY MY CHRISTMAS GIFTS FROM THE SHOCKING GRAY CATALOG I WASH MY HAIR WITH PRIDE SHAMPOO I WEAR DON'T PANIC TSHIRTS AND I STAMP GAY MONEY' ON MY CASH HE SAYS STRUBCO IS EVEN NEGOTIATING WITH A BANK TO INTRODUCE A GAY VISA CREDIT CARD EMBOSSED WITH A PINK TRIANGLE UNTIL RECENTLY OF COURSE FEW PEOPLE WERE WILLING TO ADVERTISE THEIR HOMOSEXUALITY THE FIRST ENTREPRENEURS TO ENTER THE GAYPRIDE PRODUCTS FIELD WERE SOMETIMES SURPRISED BY THEIR OWN SUCCESS SKYLER THOMAS SET UP A SILKSCREEN PRINTER IN HIS APARTMENT TO PRINT TSHIRTS WITH THE HUMOROUS SLOGANS NOBODY KNOWS I'M GAY AND CLOSETS ARE FOR CLOTHES TO SELL AT THE 1990 LOS ANGELES GAYPRIDE FESTIVAL HE SAYS HE THOUGHT HE WOULD BE LUCKY IF HE SOLD ALL 25 CUSTOMERS SNAPPED UP HIS INVENTORY I RUSHED HOME AND PRINTED ON ANYTHING I COULD FIND MR THOMAS SAYS I EVEN PRINTED ON MY OWN CLOTHING WHAT STARTED AS A POCKETCHANGE ENDEAVOR HAS BECOME A 1MILLIONAYEAR BUSINESS SELLING GAYTHEMED TSHIRTS HATS MUGS AND TEMPORARY TATTOOS THROUGH NOVELTY STORES AND MAILORDER THE ENTREPRENEUR SAYS HIS DON'T PANIC BUSINESS NAMED FOR A TSHIRT HE ONCE DESIGNED ALSO OWNS TWO RETAIL OUTLETS IN PROVINCETOWN AND WEST HOLLYWOOD CALIF THE COMPANY IS MAKING 5000 TSHIRTS FOR THIS WEEKEND'S EVENTS IN WASHINGTON THAT READ I CAN'T EVEN MARCH STRAIGHT DON'T PANIC HAS HAD CROSSOVER SUCCESS IN THE STRAIGHT MARKET WITH LESS OVERTLYGAY PRODUCTS ITS BAD HAIR DAY CAP IS EVEN SOLD AT WALT DISNEY WORLD IN FLORIDA AND ITS MIRACLES HAPPEN CHRISTMAS ORNAMENT A GLASS SPHERE WITH A RED AIDS AWARENESS RIBBON INSIDE WAS A BIG SELLER WITH GAY AND STRAIGHT PEOPLE ALIKE DON'T PANIC INITIALLY MADE ONLY 5000 OF THE ORNAMENTS THEN HAD TO RUSH BACK INTO PRODUCTION AT THE LAST MINUTE TO MEET THE DEMAND FOR 26000 BUT WITH 3 OF THE 995 RETAIL PRICE OF EACH ORNAMENT GOING TO THE AMERICAN FOUNDATION FOR AIDS RESEARCH DON'T PANIC ACTUALLY ENDED UP LOSING MONEY ON THE VENTURE SAYS VICE PRESIDENT ELLEN LEVINE THE GAYPRIDE BUSINESS IS CROSSING OVER IN OTHER WAYS TOO MORE STRAIGHT ENTREPRENEURS ARE MAKING PRODUCTS FOR GAY PEOPLE FOR EXAMPLE PAPER MOON GRAPHICS INC OF LOS ANGELES LATE LAST YEAR LAUNCHED A LINE OF GAYSPECIFIC GREETING CARDS ONE A 1950SSTYLE SHOT OF A HUSBAND AND WIFE SLEEPING IN SEPARATE TWIN BEDS SHOWS THE COUPLE DREAMING OF THE SAME IMAGE A MUSCULAR MALE BODYBUILDER IT DEVELOPED FROM SUGGESTIONS FROM RETAILERS AND CUSTOMERS SAYS FRED ZAX COOWNER OF PAPER MOON WITH HIS WIFE SANDY ADDING THAT THERE'S BEEN ZERO NEGATIVE REACTION TO THE CARDS WE JUST REALIZED THAT THERE WAS AN ENTIRE SEGMENT OF THE MARKET THAT WASN'T BEING ADDRESSED 9304220082 930422 ECONOMY GOP FILIBUSTER DEFEATS CLINTON ON STIMULUS BILL SETBACK IN SENATE IS RAISING DOUBT ABOUT PROSPECTS FOR AMBITIOUS AGENDA BY JEFFREY H BIRNBAUM AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON SUFFERED A MAJOR SETBACK WHEN HIS ECONOMICSTIMULUS PACKAGE WAS EFFECTIVELY KILLED BY A FILIBUSTER BACKED BY A SOLID PHALANX OF REPUBLICAN SENATORS INSTEAD THE SENATE LATE YESTERDAY APPROVED JUST ONE PART OF THE STIMULUS BILL 4 BILLION FOR THE EXTENSION OF JOBLESS BENEFITS FOR THE LONGTERM UNEMPLOYED THE MEASURE NOW GOES BACK TO THE HOUSE WHICH IS EXPECTED TO ACT ON IT TODAY I'M DISAPPOINTED BUT I KNEW WHEN I CAME HERE THAT WE'D HAVE TO CHANGE SOME THINGS IN WASHINGTON MR CLINTON TOLD REPORTERS AFTER THE VOTE THE AMERICAN PEOPLE WON'T BE SURPRISED I GUESS TO THINK THAT A MINORITY OF ONE HOUSE COULD KEEP SEVERAL HUNDRED THOUSAND PEOPLE OUT OF WORK THIS YEAR THE ACTION MR CLINTON'S FIRST SIGNIFICANT LOSS IN CONGRESS RAISES DOUBTS ABOUT THE PRESIDENT'S ABILITY TO ENACT HIS AMBITIOUS LEGISLATIVE AGENDA WHICH INCLUDES MUCH LARGER MORE COMPLICATED AND HIGHLY CONTROVERSIAL MEASURES TO OVERHAUL THE US HEALTHCARE SYSTEM AND REDUCE THE FEDERAL BUDGET DEFICIT BOTH DEMOCRATS AND REPUBLICANS BELIEVE MR CLINTON CAN RECOVER ESPECIALLY IF HE BECOMES MORE BIPARTISAN IN HIS APPROACH TO LEGISLATION BUT FEW DISPUTE THAT THE NEXT FEW WEEKS NOW CARRY AN INCREASED IMPORTANCE AS THE PRESIDENT WEAKENED BY SEVERAL OTHER EARLY MISSTEPS TRIES TO MOVE QUICKLY TO REGAIN HIS LOST FOOTING THE SETBACK COMES AT A BAD TIME FOR MR CLINTON A NEW WALL STREET JOURNAL/NBC NEWS POLL SHOWS THAT HIS OVERALL POPULARITY AND THE PUBLIC'S CONFIDENCE IN HIS HANDLING OF THE ECONOMY ARE BOTH WANING OF PEOPLE POLLED BETWEEN SATURDAY AND TUESDAY 52 APPROVED OF THE OVERALL JOB HE IS DOING AND 34 DISAPPROVED A MONTH EARLIER IT WAS 57 TO 26 SIMILARLY 45 APPROVED OF HIS HANDLING OF THE ECONOMY WHILE 40 DISAPPROVED A MONTH EARLIER 52 APPROVED AND 28 DISAPPROVED THE POLL ALSO SHOWS THAT MOST PEOPLE FAVOR THE STIMULUS PACKAGE FULLY 58 OF THE VOTERS SAID THEY AGREED WITH SUPPORTERS OF THE MEASURE WHILE 35 SIDED WITH OPPONENTS PEOPLE OUT THERE SUPPORT IT SAID TOP WHITE HOUSE ADVISER PAUL BEGALA THAT'S THE DISCONNECT BETWEEN WASHINGTON AND REALITY STILL THE BROAD STIMULUS MEASURE DIED DECISIVELY THE SENATE VOTED 5643 ON A PROPOSAL TO END THE REPUBLICAN FILIBUSTER ADVOCATES FELL FOUR VOTES SHY OF THE 60 VOTES NEEDED TO STOP THE DELAYING TACTIC ALL 42 REPUBLICANS PRESENT AND ONE CONSERVATIVE DEMOCRAT SEN RICHARD SHELBY OF ALABAMA VOTED AGAINST SHUTTING OFF DEBATE REPUBLICANS ASSERTED THAT THE BILL WAS FILLED WITH DEFICITWIDENING PORKBARREL SPENDING AND THEY EXPRESSED PLEASURE AT DEFEATING IT THEY HAVE THE VOTES TO DO A LOT OF THINGS SEN JOHN CHAFEE R RI SAID OF HIS DEMOCRATIC OPPONENTS THANK GOODNESS THEY DON'T HAVE THE VOTES TO PUT THROUGH THIS PHONY STIMULUS PACKAGE MR CLINTON INITIALLY REQUESTED 163 BILLION IN NEW APPROPRIATIONS PLUS 32 BILLION IN SPENDING FROM FEDERAL TRUST FUNDS FOR HIGHWAY AND PUBLIC WORKS IN THE FACE OF THE UNRELENTING REPUBLICAN FILIBUSTER IN THE SENATE THE PRESIDENT LAST WEEK PROPOSED AND SENATE DEMOCRATS INITIALLY APPROVED A COMPROMISE THAT LOPPED 4 BILLION FROM THE PACKAGE BUT THE FILIBUSTER CONTINUED TO HOLD FOLLOWING YESTERDAY'S UNSUCCESSFUL VOTE TO END THE FILIBUSTER THE ADMINISTRATION OFFERED TO SLASH ANOTHER 25 BILLION FROM ITS PACKAGE IN AN APPARENT ATTEMPT TO SHOW ITS WILLINGNESS TO GO FURTHER TOWARD COMPROMISE BUT AFTER A SERIES OF MEETINGS BETWEEN THE JOINT LEADERSHIP DEMOCRATS CAPITULATED SETTLING FOR JUST THE 4 BILLION JOBLESSBENEFITS PROVISION BILLIONS FOR UNEMPLOYMENT NOT ONE CENT FOR JOBS SAID SENATE APPROPRIATIONS COMMITTEE CHAIRMAN ROBERT BYRD OF WEST VIRGINIA THE MINORITY HAS PREVAILED BUT IT HAS NOT WON THERE IS NO VICTORY IN KILLING THE PRESIDENT'S JOBS BILL ONE NEARCERTAIN RESULT OF THE FAILURE OF THE FULL STIMULUS BILL IS THAT MR CLINTON AND HIS DEMOCRATIC ALLIES WILL HAVE TO RECONSIDER THE SIZE AND COMPOSITION OF THE ADMINISTRATION'S MANY PROPOSALS TO INCREASE SPENDING AND TAXES REPUBLICANS MADE A STRONG ARGUMENT FOR FISCAL CONSERVATISM IN THE SENATE THAT IS LIKELY TO REVERBERATE FOR A LONG TIME THE WALL STREET JOURNAL/NBC POLL SHOWS GROWING RESISTANCE TO TAX INCREASES OVER THE PAST MONTH THE NUMBER OF VOTERS WHO THINK MR CLINTON'S PLAN RELIES TOO HEAVILY ON TAX INCREASES ROSE TO 63 FROM 50 THE NUMBER WHO THINK IT STRIKES A GOOD BALANCE DECLINED TO 32 FROM 43 IN ONE SIGNIFICANT WAY THOUGH THE PRESIDENT'S ECONOMIC PACKAGE IS AT LEAST SOMEWHAT IMMUNE TO REPUBLICAN OPPOSITION IN THE SENATE THAT PLAN WHICH WOULD REDUCE THE BUDGET DEFICIT CANNOT BE FILIBUSTERED UNDER SENATE RULES BUT THE HEALTHCARE PLAN COULD RUN INTO THE SAME KIND OF PARTISAN DIFFICULTIES THAT HURT THE STIMULUS BILL DESPITE CLAIMS FROM THE WHITE HOUSE THAT THE GOP HAS BEEN CONSULTED REPUBLICAN LAWMAKERS SAY THAT THEIR VIEWS AREN'T BEING INCORPORATED INTO THE HEALTH PACKAGE WHICH IS SCHEDULED FOR COMPLETION NEXT MONTH WHITE HOUSE AIDES WERE SURPRISED AT THE WILLINGNESS OF EVEN MODERATE REPUBLICANS TO CONFRONT THE PRESIDENT ON THE STIMULUS PACKAGE THESE LAWMAKERS WILL GET ADDED ATTENTION IN THE WEEKS AND MONTHS AHEAD AT THE SAME TIME THE SMALLER REPUBLICAN MINORITY IN THE HOUSE HAS BEEN EMBOLDENED AND COULD WREAK MORE DAMAGE ON OTHER CLINTON INITIATIVES ESPECIALLY HEALTH CARE WHICH SPLITS THE DEMOCRATS AS WELL IN THE NEAR TERM SENATE DEMOCRATS MIGHT DARE REPUBLICANS TO FILIBUSTER AGAIN ON A CAMPAIGNFINANCE BILL THAT MR CLINTON IS EXPECTED TO UNVEIL AS EARLY AS NEXT WEEK THE DEMOCRATS THINK THEIR CHANCE OF PASSING THE BILL MIGHT BE ENHANCED BECAUSE THE GOP MAY BE UNWILLING TO USE THE HARSH POLITICAL WEAPON AGAIN SO QUICKLY ON A BILL THAT AT LEAST PURPORTS TO CLEAN UP THE FEDERAL ELECTION SYSTEM BUT THE DEATH OF THE STIMULUS BILL IS LIKELY TO DELAY ENACTMENT OF MR CLINTON'S ANTICIPATED 18 BILLION RUSSIANAID PACKAGE DEMOCRATS ESPECIALLY IN THE HOUSE ARE UNCOMFORTABLE PASSING A BILL TO INCREASE SPENDING IN A FOREIGN COUNTRY SO SOON AFTER THE CONGRESS FAILED TO INCREASE SPENDING ON PROGRAMS IN THE US STILL THE SENATE REPUBLICANS' SUCCESS BELIES DIVISIONS BETWEEN OLDER MODERATES AND YOUNGER CONSERVATIVES THESE FACTIONS CAME TOGETHER IN OPPOSITION TO THE STIMULUS BILL BUT THE MODERATE WING IS UNEASY WITH THE OBSTRUCTIONIST TACTICS AND WANTS TO BE RECOGNIZED AS A PARTNER IN SHAPING FUTURE LEGISLATION ON HEALTHCARE AND TAXES AS THE PARTY LEADER MINORITY LEADER ROBERT DOLE STRADDLES BOTH CAMPS WHILE REPUBLICANS REPEATEDLY ATTACKED THE STIMULUS BILL FOR ITS DEFICITFINANCING THE KANSAN ACKNOWLEDGED LATER THAT SOME OF HIS COLLEAGUES OBJECTED TO THE NEW SPENDING ALTOGETHER EVEN IF THE PRESIDENT FOUND OFFSETTING CUTS FOR THE FULL SUM NEW YORK SEN ALFONSE D'AMATO WHO HAD BEEN TARGETED BY THE WHITE HOUSE LOBBYING EFFORT RETURNED FROM THE SPRING RECESS TO TELL FELLOW REPUBLICANS THAT HIS POLITICAL SCIENCE STUDENTS AT HOME DIDN'T UNDERSTAND THE DISTINCTION BETWEEN SPENDING THAT WOULD BE OFFSET WITH CUTS ELSEWHERE AND SPENDING GENERICALLY THAT'S BECAUSE YOU TAUGHT THEM ALFONSE SEN MARK HATFIELD R ORE IS SAID TO HAVE ANSWERED IN THE CLOSEDDOOR MEETING DAVID WESSEL CONTRIBUTED TO THIS ARTICLE 9304220081 930422 BUDGET DEFICIT NARROWED TO 4458 BILLION IN MARCH WASHINGTON THE US GOVERNMENT'S TOTAL BUDGET DEFICIT NARROWED TO 4458 BILLION IN MARCH FROM 4759 BILLION THE MONTH BEFORE AND 5071 BILLION IN MARCH 1992 IN ITS MONTHLY STATEMENT THE TREASURY YESTERDAY SAID RECEIPTS ROSE TO 8345 BILLION LAST MONTH COMPARED WITH 6614 BILLION IN FEBRUARY THE US SPENT 12803 BILLION LAST MONTH COMPARED WITH 11373 BILLION THE MONTH BEFORE THE RESOLUTION TRUST CORP GENERATED 967 MILLION IN RECEIPTS FROM THE SALE OF ASSETS OF FAILED THRIFTS BUT THE RTC THE AGENCY HANDLING THE SAVINGSANDLOAN CLEANUP HASN'T BEEN ABLE TO TAKE ON ANY NEW CASES SINCE CONGRESS SUSPENDED ITS FUNDING LAST YEAR YESTERDAY THE TREASURY ANNOUNCED THAT IT PLANS TO ASK CONGRESS FOR 42 BILLION TO COMPLETE THE MASSIVE THRIFT BAILOUT 9304220080 930422 IPALCO LAUNCHES ITS HOSTILE OFFER FOR PSI RESOURCES BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL IPALCO ENTERPRISES INC FORMALLY LAUNCHED ITS 15 BILLION HOSTILE BID FOR PSI RESOURCES INC AFTER THE SECURITIES AND EXCHANGE COMMISSION CLEARED THE WAY BY DECLARING THE UTILITY'S REGISTRATION STATEMENT EFFECTIVE THE PARENT OF INDIANAPOLIS POWER & LIGHT CO SAID OFFERING MATERIALS COVERING ITS 2650ASHARE STOCKANDCASH OFFER WILL BE MAILED TO PSI HOLDERS AS SOON AS PRACTICABLE THE OFFER FOR THE PLAINFIELD IND PARENT OF PSI ENERGY THE STATE'S BIGGEST UTILITY IS SET TO EXPIRE AT 1201 AM JUNE 1 IPALCO SAID IN DECEMBER PSI RESOURCES AGREED TO MERGE WITH CINCINNATI GAS & ELECTRIC CO TO FORM A NEW COMPANY TO BE KNOWN AS CINERGY ITS STOCKHOLDERS HAVE YET TO VOTE ON THAT PROPOSED UNION IPALCO THEN ANNOUNCED IN MARCH THAT IT PLANNED TO MAKE A RIVAL OFFER AS SOON AS THE SEC SIGNED OFF ON ITS REGISTRATION STATEMENT SINCE THEN THE TWO INDIANA HOLDING COMPANIES HAVE SPENT THEIR TIME LOBBING CHARGES OF PERFIDY AT EACH OTHER IPALCO HAS CONTENDED THAT IT CAN WRING MORE SAVINGS OUT OF A COMBINATION WITH PSI THAN THE PSICINCINNATI GAS UNION WOULD AFFORD AND THAT ITS INTRASTATE BID COULD BE DONE WITH FEWER REGULATORY COMPLICATIONS THAN PSI'S PROPOSED INTERSTATE LINKUP WITH CG&E IT ALSO SUED TO BLOCK PSI'S MERGER PLAN WITH THE OHIO COMPANY AND SOUGHT TO NOMINATE ITS OWN SLATE OF DIRECTORS FOR ELECTION AT PSI'S ANNUAL MEETING ANNOUNCEMENT OF IPALCO'S COMPETING BID PUSHED PSI'S STOCK SIGNIFICANTLY ABOVE ITS LEVEL WHEN INVESTORS THOUGHT THE CG&E MERGER WAS GOING TO PROCEED BUT PSI HAS BLASTED IPALCO'S BID AS FOOL'S GOLD MISLEADINGLY PRESENTED AND YESTERDAY CALLED IT ILLUSORY NOW THAT THE TENDER OFFER APPEARS SET TO BEGIN PSI SAYS IT WON'T COMMENT BEYOND URGING ITS HOLDERS TO TAKE NO ACTION WHILE ITS BOARD WEIGHS THE BID UNDER IPALCO'S OFFER PSI HOLDERS WILL BE ABLE TO RECEIVE FOR EACH OF THEIR SHARES EITHER 2650 OF IPALCO SHARES OR THAT AMOUNT IN CASH THE CASH PORTION OF THE DEAL IS LIMITED TO A MAXIMUM OF 19 OF THE TOTAL IT WILL PAY FOR THE PLANNED ACQUISITION SHOULD THE PRICE OF IPALCO SHARES SLIP BELOW 35875 OR ABOVE 41625 BEFORE THE DEAL IS COMPLETED THE EXCHANGE WOULD BECOME FIXED AND HAVE A VALUE OF MORE OR LESS THAN 2650 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING PSI SHARES SLIPPED 125 CENTS TO 24 IPALCO WAS UNCHANGED AT 38375 CINCINNATI GAS FELL 125 CENTS TO 26875 IPALCO'S OFFER IS FREIGHTED WITH A HOST OF QUALIFICATIONS REFLECTING IN PART THE ARDUOUS AND LENGTHY REGULATORY GANTLET ANY UTILITY MERGER MUST RUN AND IN PART THE HOSTILE NATURE OF ITS BID AMONG OTHER THINGS IPALCO'S BID IS SUBJECT TO ITS BEING TENDERED A MAJORITY OF PSI'S COMMON STOCK OUTSTANDING ON A FULLY DILUTED BASIS IT'S ALSO SUBJECT TO PSI'S ELIMINATING ITS ANTITAKEOVER PROVISIONS INCLUDING ITS POISON PILL RIGHTS PLAN ANOTHER CONDITION IS THAT PSI'S SHAREHOLDERS NOT APPROVE THE PROPOSED MERGER WITH CINCINNATI GAS & ELECTRIC 9304220079 930422 NYNEX SUBSIDIARY IN ENGLAND ACQUIRES 3 CABLE FRANCHISES WHITE PLAINS NY NYNEX CORP SAID ITS BRITISH SUBSIDIARY NYNEX CABLECOMMS LTD HAS ACQUIRED THREE MORE COMPANIES HOLDING CABLE FRANCHISES IN ENGLAND TERMS WEREN'T DISCLOSED NYNEX CABLECOMMS SAID THE FRANCHISES WITH A TOTAL OF 499000 CUSTOMERS IN THE NORTH WEST AND MIDLANDS REGIONS MAKE IT THE UK'S LARGEST COMBINED CABLETELEVISION AND TELEPHONE OPERATOR THE ACQUISITION INCREASES NYNEX CABLECOMMS'S HOLDINGS TO 17 FRANCHISES WITH MORE THAN 25 MILLION RESIDENTIAL AND BUSINESS CUSTOMERS THE COMPANIES WERE ACQUIRED FROM MACLEAN HUNTER CABLEVISION LTD THE ANNOUNCEMENT CAME LESS THAN A MONTH AFTER THE ACQUISITION OF THE GREATER MANCHESTER BOLTON AND DERBY CABLE FRANCHISES THE NEWEST FRANCHISES GIVE NYNEX A STRONG STRATEGIC PRESENCE IN AND AROUND MANCHESTERENGLAND'S SECONDLARGEST CITY AND AN IMPORTANT HUB FOR NATIONAL TELECOMMUNICATIONS TRAFFIC THE NEW FRANCHISES ARE LOCATED IN CHESHIRE EAST LANCASHIRE AND STAFFORDSHIRE NYNEX CABLECOMMS HAS BEEN OFFERING RESIDENTIAL AND BUSINESS TELECOMMUNICATIONS SERVICES AND CABLE TV IN PORTSMOUTH SINCE SEPTEMBER 1991 BRIGHTON SINCE JANUARY 1992 AND THE LONDON BOROUGH OF BROMLEY SINCE DECEMBER 1992 MOST OF THE CUSTOMERS TAKE BOTH CABLE TV AND TELEPHONE SERVICES NYNEX CABLECOMMS PLANS TO INVEST MORE THAN 1 BILLION 155 BILLION TO PROVIDE LOCAL COMMUNICATIONS NETWORKS IN ALL FRANCHISE AREAS FEATURING STATEOFTHEART FIBEROPTIC INFRASTRUCTURE CAPABLE OF CARRYING VOICE DATA VIDEO AND INFORMATION SERVICES 9304220077 930422 WHO'S NEWS SCIMED LIFE SYSTEMS INC SCIMED LIFE SYSTEMS INC MINNEAPOLIS DONALD C HARRISON SENIOR VICE PRESIDENT AND PROVOST FOR HEALTH EDUCATION UNIVERSITY OF CINCINNATI AND CHIEF EXECUTIVE OFFICER OF THE MEDICAL CENTER WAS NAMED A DIRECTOR OF THIS MAKER OF DISPOSABLE MEDICAL DEVICES INCREASING BOARD MEMBERSHIP TO SIX 9304220076 930422 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY PAMELA SEBASTIAN ELEMENTARY SCHOOLS BUILD NEW CLASSROOMS BUT STILL FEAR A TIGHT FIT CONSTRUCTION NEEDS MOUNT AS SCHOOLS GRAPPLE WITH A BULGE OF THE OFFSPRING OF BABY BOOMERS AND IMMIGRANTS LESS THAN THREE YEARS AFTER FAIRFAX COUNTY VA RAISED 169 MILLION TO FUND CONSTRUCTION THE COUNTY IS CONSIDERING A NEW 137 MILLION BOND THIS YEAR BECAUSE CLASSES ARE STILL SPILLING INTO TEACHERS' LOUNGES DALLAS'S DISTRICT TAPS A 275 MILLION DECEMBER BOND ISSUE TO FUND CONSTRUCTION FOR 15 BUILDINGS INCLUDING 12 ELEMENTARY SCHOOLS PUBLIC ELEMENTARYSCHOOL ENROLLMENT HITTING 314 MILLION THIS FALL IS EXPECTED BY 1996 TO EXCEED THE RECORD OF 326 MILLION IN 1970 NEW ORLEANS'S DISTRICT CROWDED DESPITE 400 PORTABLE CLASSROOMS RECKONS IT WILL NEED 450 MILLION OVER FIVE YEARS FOR BUILDING AND RENOVATION IT WEIGHS A BOND ISSUE THIS FALL VOTERS REJECTED ONE IN 1990 SCHOOL DISTRICTS SPENT 1073 BILLION IN CONSTRUCTION IN 1992 SAYS AS&U A MAGAZINE THAT TRACKS SUCH SPENDING DISTRICTS WORRY MORE BUILDING WILL BE NEEDED AS PUPILS MOVE ON TO HIGH SCHOOL BOBBING HEAD DOLLS POP UP AT AUCTION WHILE NEW VERSIONS PROLIFERATE THE ORIGINAL PAPIERMACHE BOBBER DOLLS OF SPORTS AND ENTERTAINMENT CELEBRITIES HAD THEIR HEYDAY IN THE 1960S LATELY THOSE MADEINJAPAN DOLLS WITH SPRINGMOUNTED HEADS HAVE FOUND THEIR WAY TO THE AUCTION BLOCK SOTHEBY'S LISTS A SET OF FOUR BEATLES DOLLS FOR ITS JUNE AUCTION A SIMILAR SET SOLD FOR 990 IN DECEMBER AND A MICKEY MANTLE BOBBER FETCHED 1150 LAST MONTH SPORTS ACCESSORIES & MEMORABILIA INC A FLEDGLING CALIFORNIA FIRM MAKES CERAMIC BOBBERS STARTING AT 40 THE MAKER'S OUTPUT INCLUDES 5000 REGGIE JACKSON AND 10000 MICKEY MANTLE DOLLS THAT MAY BE TOO MANY IN A VERY THIN MARKET SAYS TIM HUNTER OF RENO NEV WHO PUBLISHES A BOBBER PRICE GUIDE REPLICAS OFTEN GROW WHEN A COLLECTIBLE GETS POPULAR SAYS TOM LINGENFELTER OF THE HERITAGE COLLECTORS SOCIETY IN DOYLESTOWN PA HE ADDS THAT WHILE IT IS CLEAR NOW WHICH ARE OLD CONFUSION MAY SET IN YEARS FROM NOW THUS ORIGINAL BOXES ARE KEY RESTAURATEURS QUIT THE BUSINESS TO BECOME FULLTIME HUNGER ACTIVISTS TWO OWNERCHEFS SOLD THEIR RESTAURANTS TO BECOME ANTIHUNGER ADVOCATES AFTER VOLUNTEERING FOR SHARE OUR STRENGTH A NATIONAL GROUP THAT AWARDS GRANTS TO HUNGERRELIEF AGENCIES IN PHILADELPHIA WENDY BORN SOLD HER STAKE IN THE WHITE DOG RESTAURANT IN 1991 AND IS HEAD OF SOS'S OUTREACH PROGRAM HER FARMGLEANING PROJECT COLLECTS FOOD THAT WOULD OTHERWISE ROT IN FIELDS MS BORN URGES HOME GARDENERS TO PLANT AN EXTRA ROW OR TWO FOR THE HUNGRY ACROSS THE COUNTRY IN PORTLAND ORE AMELIA HARD AND HER HUSBAND SOLD THEIR GENOA RESTAURANT AND MS HARD TURNED HER EFFORTS TO ORGANIZING CHEFS TO ACTION A KEY PROGRAM CHEFS VOLUNTEER TO COOK DINNER MONTHLY AT THE LOCAL ST FRANCIS DINING HALL SOS AND SOME 5000 FOOD PROFESSIONALS NOW GEAR UP FOR TASTE OF THE NATION ITS ANNUAL FOOD AND WINETASTING FUNDDRIVE STARTING THIS WEEKEND LAST YEAR'S TASTE OF THE NATION EVENTS ACROSS THE US RAISED SOME 3 MILLION PUPPIES' PERK WOLVERINE WORLD WIDE MAKER OF HUSH PUPPIES MARKS THE BRAND'S 35TH ANNIVERSARY BY OFFERING SHAREHOLDERS A NOVEL 35 DISCOUNT ON SHOES IT PUTS AN ORDER FORM IN THE ANNUAL REPORT MULTIMEDIA COMPUTERS MACHINES THAT TALK TO USERS MAY BODE WELL FOR MAKERS OF COMPUTER SPEAKERS AND HEADPHONES MICHAEL KOSS PRESIDENT OF KOSS CORP MILWAUKEE SAYS PC SPEAKERS ACCOUNT FOR 12 OF SALES NEARLY DOUBLE LAST FISCAL YEAR HE PREDICTS A RISE IN HEADPHONE SALES AS WORKERS GROW TIRED OF HEARING THEIR NEIGHBORS' COMPUTERS PARLIAMENTARY PERPLEXITY OVER CREDIT CARDS SHOWED UP IN A SURVEY OF 130 MEMBERS OF THE BRITISH PARLIAMENT ALMOST 40 OF THOSE WITH CREDIT CARDS SAID THEY DIDN'T KNOW THE INTEREST RATE NEARLY HALF OF RESPONDENTS FAILED TO DEFINE CORRECTLY THE MEANING OF APR OR ANNUAL PERCENTAGE RATE THE SURVEY WAS CONDUCTED BY AMERICAN EXPRESS WHOSE CHARGE CARD REQUIRES TOTAL PAYMENT EVERY MONTH AND THUS DOESN'T OFFER CREDIT HOTELS SERVE UP GREEN ROOMS FOR GUESTS WHO SNIFF AT NONSMOKING LODGINGS WHILE MOST HOTELS NOW DESIGNATE A LARGE SHARE OF ROOMS AS NONSMOKING A FEW GO FURTHER OUTFITTING SELECT ROOMS WITH SPECIAL AIR AND WATERFILTER SYSTEMS SAYING IT WANTS TO WIDEN GUESTS' OPTIONS THE MIAMI MARRIOTT DADELAND EQUIPS 38 OF ITS 302 ROOMS WITH AN AIRFILTER SYSTEM SIMILAR TO THE ONES USED IN BURN CENTERS THE SHERATON GRAND HOTEL AT THE DALLASFORT WORTH AIRPORT HAS FOUR GREEN ROOMS POPULAR AMONG GUESTS WITH SEVERE ALLERGIES ASIDE FROM ADDING FILTERS THE HOTEL USES PHBALANCED CLEANERS FOR SUCH ROOMS ENVIRONMENTALLY CLEAN INTERNATIONAL EAST GRANBY CONN SAYS IT HAS OUTFITTED HOTELS IN NORTH AMERICA AND EUROPE WITH FILTERS FOR 400 TO 600 A ROOM THE MIAMI MARRIOTT CHARGES 5 TO 10 EXTRA FOR THE ROOMS BUT MARK LOMANNO OF SMITH TRAVEL RESEARCH TENNESSEE DOUBTS THAT CASHPINCHED HOTELS WILL SPEND FOR WIDESPREAD GREENING BRIEFS BROOKLYN UNION GAS REMINDS CUSTOMERS TO USE ITS FULL NAME NOT BUG WHEN WRITING CHECKS WITH PARKING SPACES AT A PREMIUM BALL STATE UNIVERSITY IN INDIANA PERMITS SOME DISABLED STUDENTS TO TICKET CARS WRONGFULLY PARKED IN SPOTS RESERVED FOR DISABLED DRIVERS 9304220073 930422 BUSINESS BRIEF CRAY RESEARCH INC FIRSTQUARTER PROFIT JUMPS ON 227 INCREASE IN SALES AFTER A DISMAL 1992 CRAY RESEARCH INC REPORTED THAT REDUCED OPERATING COSTS AND INCREASED SALES HELPED BOOST ITS FIRSTQUARTER NET INCOME TO 15 MILLION OR 58 CENTS A SHARE FROM 39 MILLION OR 14 CENTS A SHARE IN THE YEARAGO PERIOD REVENUE ROSE 227 TO 2026 MILLION THE EAGAN MINN SUPERCOMPUTER MAKER WHICH SUFFERED ITS FIRST YEARLY NET LOSS EVER LAST YEAR SAID CUSTOMERS HAD ACCEPTED SYSTEMS AND UPGRADES DURING THE FIRST QUARTER WITH A CONTRACT VALUE OF 160 MILLION ADDING THAT THE CONTRACT VALUE OF ORDERS SIGNED DURING THE QUARTER WAS 124 MILLION UP FROM 86 MILLION IN THE YEAREARLIER PERIOD MEANWHILE THE COMPANY SAID ITS BACKLOG AT THE END OF THE QUARTER STOOD AT 381 MILLION COMPARED WITH 354 MILLION A YEAR AGO IN ADDITION TO A 32 MILLION ORDER FOR ONE OF THE COMPANY'S C90 SYSTEMS FROM INTERNATIONAL CUSTOMER THAT THE COMPANY WOULD NOT NAME CRAY RESEARCH ALSO SAID IT HAD ADDED FIVE NEW UNIVERSITY CUSTOMERS FOR ITS ENTRY LEVEL PRODUCTS CRAY RESEARCH ALSO SAID IT HAD CUT OPERATING EXPENSES BY 10 AND REDUCED ITS WORK FORCE BY ABOUT 400 EMPLOYEES TO 4900 EMPLOYEES 9304220072 930422 BUSINESS BRIEF MANOR CARE INC FIRM'S CHOICE HOTELS UNIT ENTERS VENTURE IN CANADA MANOR CARE INC SILVER SPRING MD SAID ITS MAJORITYOWNED CHOICE HOTELS INTERNATIONAL UNIT ENTERED A JOINT VENTURE WITH A LARGE CANADIAN LODGING CONCERN TO LICENSE HOTELS MOTELS AND OTHER PROPERTIES IN CANADA THE VENTURE WITH JOURNEY'S END CORP BELLEVILLE ONTARIO INVOLVED NO EXCHANGE OF STOCK OR CASH BUT CHOICE AND JOURNEY'S END WILL START PAYING FRANCHISE FEES TO THE NEW VENTURE CHOICE SAID THE VENTURE CALLED CHOICE HOTELS CANADA INC IS SET UP ALONG THE LINES OF CHOICE HOTELS INTERNATIONAL'S OVERSEAS FORAYS WHERE IT TYPICALLY DEVELOPS A MASTER FRANCHISE RELATIONSHIP WITH A LOCAL PARTNER THE CANADIAN VENTURE COMBINES 54 EXISTING CHOICE LOCATIONS WITH 120 PROPERTIES CURRENTLY MANAGED BY JOURNEY'S END CHOICE HAS NEARLY 3000 HOTELS IN 30 COUNTRIES AND IS 90OWNED BY MANOR CARE A HEALTHCARE SERVICES AND LODGING FIRM 9304220071 930422 INTERNATIONAL BRIEF AIR FRANCE CARRIER CONFIRMS WIDER LOSS OF 6067 MILLION FOR 1992 FRANCE'S STATE AIRLINE AIR FRANCE CONFIRMED THAT ITS CONSOLIDATED LOSSES WIDENED IN 1992 TO 3266 BILLION FRANCS 6067 MILLION FROM 685 MILLION FRANCS IN 1991 THE COMPANY HAD REVEALED THIS WINTER THAT IT EXPECTED A LOSS OF THIS MAGNITUDE WITH THIS LATEST LOSS AIR FRANCE HAS ACCUMULATED LOSSES OF ABOUT 47 BILLION FRANCS IN THE LAST THREE YEARS AS IT STRUGGLES TO COPE WITH THE CONTINUING CRISIS IN THE AIRLINE INDUSTRY REVENUES EDGED DOWN 1 TO 57 BILLION FRANCS FROM 576 BILLION FRANCS AIR FRANCE SAID INTEREST COSTS WERE UP 67 TO 21 BILLION FRANCS AND THAT IT TOOK NET EXCEPTIONAL CHARGES OF 700 MILLION FRANCS THE BULK OF THAT CAME FROM A PROVISION OF 723 MILLION FRANCS LINKED TO A CHANGE IN THE EMPLOYEE PENSION FUND 9304220070 930422 WHO'S NEWS PENN TRAFFIC CO PENN TRAFFIC CO JOHNSTOWN PA EUGENE SUNDERHAFT 45 YEARS OLD WAS NAMED VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER OF THIS FOOD RETAILER MR SUNDERHAFT HAS SERVED IN THE SAME POSITION FOR THE COMPANY'S P&C FOODS DIVISION HE SUCCEEDS JOHN M KRIAK 45 WHO RESIGNED TO BECOME EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF CROWN HOLDINGS CO 9304220069 930422 BUSINESS BRIEF IBP INC MEATPACKER POSTS 29 RISE IN NET FOR THE FIRST QUARTER IBP INC SAID FIRSTQUARTER NET JUMPED NEARLY 29 BECAUSE BENEFICIAL ACCOUNTING CHANGES MORE THAN OFFSET HIGHER EXPENSES ASSOCIATED WITH TIGHT LIVESTOCK SUPPLIES THE NATION'S LARGEST MEATPACKER BASED IN DAKOTA CITY NEB SAID IT EARNED 249 MILLION OR 52 CENTS A SHARE COMPARED WITH 194 MILLION OR 41 CENTS A SHARE FOR THE YEAREARLIER QUARTER THE LATEST QUARTER INCLUDES 126 MILLION OR 26 CENTS A SHARE FROM CHANGING THE METHOD OF ACCOUNTING FOR INCOME TAXES EXCLUDING THE ACCOUNTING CHANGE IBP'S FIRSTQUARTER EARNINGS FELL NEARLY 37 SALES ROSE 35 TO 275 BILLION FROM 265 BILLION THE RESULTS FELL WITHIN WALL STREET'S EXPECTATIONS MANY MEATPACKERS GENERATED LOSSES OR SAW PROFITS PLUNGE DURING THE QUARTER BECAUSE A SURPRISINGLY TIGHT SUPPLY OF FATTENED CATTLE AND HOGS CAUSED THEIR COST OF BUYING ANIMALS TO JUMP THE TIGHT SUPPLY OF LIVESTOCK WAS CAUSED IN PART BY THE UNUSUALLY SNOWY AND WET WINTER ACROSS THE GREAT PLAINS WHICH KILLED MANY CALVES AND SLOWED THE GROWTH OF OLDER LIVESTOCK DAVID C NELSON AN ANALYST AT NATWEST WASHINGTON ANALYSIS IN WASHINGTON DC YESTERDAY LOWERED HIS ESTIMATE OF IBP'S 1994 PERSHARE EARNINGS BY A DIME TO 180 A SHARE 9304220068 930422 CORRECTIONS & AMPLIFICATIONS JOHN R WALTER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF RR DONNELLEY & SONS CO RECEIVED STOCKOPTION GRANTS LAST YEAR WHOSE FUTURE GAIN HAS AN ESTIMATED PRESENT VALUE OF 876700 THAT FIGURE WAS MISSTATED AS 8767300 IN YESTERDAY'S SPECIAL REPORT ON EXECUTIVE PAY AMERICAN INTERNATIONAL GROUP INC PURCHASED INTERNATIONAL LEASE FINANCE CORP FOR 13 BILLION IN 1990 IN MONDAY'S ARTICLE ABOUT GPA GROUP PLC THE PRICE WAS INCORRECTLY STATED AS 125 BILLION AMOCO CORP WILL SPEND 49 OF THE 15 BILLION ALLOTTED TO DEVELOP THE LIUHUA OIL FIELD IN THE SOUTH CHINA SEA AMOCO'S PROJECT PARTNER CHINA OFFSHORE OIL NANHAI EAST WILL SPEND THE REMAINDER AN ARTICLE TUESDAY INCORRECTLY REPORTED THAT AMOCO WOULD BEAR THE FULL COST NICOR INC'S FIRSTQUARTER EARNINGS OF 83 CENTS A SHARE AFTER ADJUSTING FOR A 2FOR1 STOCK SPLIT PAYABLE APRIL 26 WERE BETTER THAN THE AVERAGE OF FIVE ANALYSTS' ESTIMATES OF 80 CENTS A SHARE RESULTING IN A POSITIVE EARNINGS SURPRISE OF 375 BECAUSE OF AN ERROR IN THE ZACKS INVESTMENT RESEARCH DATABASE NICOR WAS INCORRECTLY SHOWN AS A NEGATIVE SURPRISE OF 4813 IN YESTERDAY'S QUARTERLY EARNINGS SURPRISES TABLE 9304220067 930422 BUSINESS BRIEF GTECH HOLDINGS CORP CALIFORNIA AWARDS CONTRACT FOR ONLINE LOTTERY SYSTEM GTECH HOLDINGS CORP WEST GREENWICH RI WAS AWARDED A CONTRACT TO PROVIDE AND OPERATE A NEW ONLINE LOTTERY SYSTEM FOR THE CALIFORNIA STATE LOTTERY THE CONTRACT WHICH BEGINS IN OCTOBER 1993 IS WORTH ABOUT 203 MILLION IN REVENUES OVER FIVE YEARS TO GTECH ACCORDING TO CALIFORNIA LOTTERY OFFICIALS CONTROVERSY HAS SURROUNDED BIDDING FOR THE CONTRACT GTECH'S MAIN COMPETITOR VIDEO LOTTERY TECHNOLOGIES INC BOZEMAN MONT COMPLAINED IN FEBRUARY THAT IT COULDN'T BID BECAUSE OF TERMS SET BY STATE OFFICIALS THAT FAVORED GTECH WHICH WAS THE ONLY BIDDER A SUBSEQUENT INQUIRY OVERSEEN BY CALIFORNIA GOV PETE WILSON FOUND SOME PROBLEMS WITH THE BIDDING PROCESS BUT ALLOWED IT TO PROCEED EARLIER THIS WEEK THE LOTTERY SYSTEMS AND EQUIPMENT COMPANY WAS AWARDED A CONTRACT TO OPERATE AND SUPPLY THE GEORGIA LOTTERY AN ESTIMATED VALUE OF THAT CONTRACT WAS NOT DISCLOSED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY GTECH SHARES ROSE 875 CENTS TO 34875 9304220066 930422 BUSINESS BRIEF SILICON GRAPHICS INC COMPUTER CONCERN POSTS FISCAL THIRDQUARTER PROFIT CITING THE STRENGTH OF NEW PRODUCTS SILICON GRAPHICS INC SWUNG TO A PROFITABLE FISCAL THIRD QUARTER FROM A YEARAGO LOSS THE MAKER OF COMPUTER WORKSTATIONS POSTED NET INCOME OF 22 MILLION OR 30 CENTS A SHARE FOR THE PERIOD ENDED MARCH 31 COMPARED WITH A YEAREARLIER LOSS OF 497000 OR TWO CENTS A SHARE REVENUE ROSE 30 TO 271 MILLION FROM 208 MILLION THE MOUNTAIN VIEW CALIF COMPANY SAID THE QUARTER'S RESULTS SHOW ITS ABILITY TO SUCCESSFULLY EXECUTE PRODUCT TRANSITIONS DURING THE QUARTER SILICON GRAPHICS ANNOUNCED AND SHIPPED THREE NEW PRODUCTS AND SAID THEY MET WITH TREMENDOUS ENTHUSIASM IN THE MARKETPLACE FOR THE NINE MONTHS SILICON GRAPHICS POSTED NET OF 60 MILLION OR 83 CENTS A SHARE COMPARED WITH A LOSS OF 9 MILLION OR 26 CENTS A SHARE A YEAR AGO THE YEARAGO PERIOD INCLUDED A 23 MILLION RESTRUCTURING CHARGE TAKEN BY MIPS COMPUTER SYSTEMS PRIOR TO ITS MERGER WITH SILICON GRAPHICS NINEMONTH REVENUE ROSE 23 TO 772 MILLION FROM 627 MILLION 9304220065 930422 WESTERN DIGITAL CORP REPORTS 16 MILLION IN THIRDQUARTER NET IRVINE CALIF WESTERN DIGITAL CORP SAID NET INCOME FOR THE THIRD QUARTER ENDED MARCH 27 WAS 16 MILLION OR FIVE CENTS A SHARE COMPARED WITH A NET LOSS OF 186 MILLION OR 64 CENTS A SHARE A YEAR AGO REVENUE INCREASED 42 TO 3254 MILLION FROM 2293 MILLION LAST MONTH THE COMPANY PREDICTED NET WOULD BE SIGNIFICANTLY BELOW THE 20 CENTS TO 26 CENTS FORECAST BY ANALYSTS AND A SPOKESMAN SAID HE WAS COMFORTABLE WITH REVISED ESTIMATES OF FIVE CENTS TO 10 CENTS PRIOR TO THAT ANNOUNCEMENT WESTERN DIGITAL'S NEW YORK STOCK EXCHANGE SHARE PRICE WAS 8125 YESTERDAY THE STOCK CLOSED AT 5 BEFORE THE EARNINGS FIGURES WERE RELEASED IN A STATEMENT ROGER W JOHNSON CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID RESULTS WERE SEVERELY IMPACTED BY PRICING PRESSURES IN THE DISK DRIVES INDUSTRY REVENUE DECLINED FROM THE SECOND QUARTER AND SHIPMENTS WERE VIRTUALLY FLAT THE COMPANY SAID EXECUTIVES SAID THE COMPANY'S STRATEGY OF SHIFTING RAPIDLY TO NEW HIGHERCAPACITY 35INCH DISK DRIVES WAS PAYING OFF AND THAT SHIPMENTS WERE EXPECTED TO DOUBLE IN THE FOURTH QUARTER THE NEW DRIVES REPRESENT ABOUT 43 OF THOSE SOLD BY THE COMPANY DISK DRIVES REPRESENT ABOUT 85 OF WESTERN DIGITAL'S REVENUE ROBERT J BLAIR A COMPANY VICE PRESIDENT SAID FOURTHQUARTER NET THAT MET ESTIMATES OF 10 CENTS TO 20 CENTS A SHARE WAS ACHIEVABLE GIVEN MORE NORMALIZED PRICE DECLINES IN THE DRIVE INDUSTRY 9304220064 930422 BUSINESS BRIEF CR BARD INC NET IN 1ST PERIOD ROSE 24 DESPITE FLAT PRODUCTS SALES CR BARD INC REPORTED A 24 INCREASE IN FIRSTQUARTER EARNINGS ALTHOUGH SALES OF ITS MEDICAL PRODUCTS WERE ESSENTIALLY FLAT AS PURCHASERS HELD BACK THE MAKER OF SURGICAL CATHETERS IMPLANT DEVICES AND OTHER PRODUCTS BASED IN MURRAY HILL NC HAD NET OF 208 MILLION OR 39 CENTS A SHARE COMPARED WITH 168 MILLION OR 32 CENTS A SHARE THE RECENT QUARTER INCLUDED A CHARGE OF 61 MILLION OR 12 CENTS A SHARE FOR ACCOUNTING FOR POSTRETIREMENT MEDICAL BENEFITS SALES WERE 2364 MILLION COMPARED WITH 2375 MILLION A YEAR AGO GEORGE T MALONEY CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE SALES APPEAR TO REFLECT AN INDUSTRYWIDE FIRSTQUARTER CONSERVATISM IN PURCHASING PATTERNS IN THE US IN ANTICIPATION OF HEALTHCARE REFORM DESPITE THIS HE SAID BARD'S STRONG EARNINGS REFLECT OUR ABILITY TO FOCUS ON GROSS MARGINS THROUGH MIX AND COST IMPROVEMENTS 9304220063 930422 BUSINESS BRIEF PARKER DRILLING CO CHEVRON KAZAKHSTAN PROJECT AWARDS JOB FOR TENGIZ FIELD PARKER DRILLING CO TULSA OKLA SAID IT HAS A CONTRACT TO SUPPLY DRILLING PERSONNEL TO DEVELOP THE TENGIZ OIL FIELD IN KAZAKHSTAN TERMS WERE NOT DISCLOSED TENGIZCHEVROIL THE NEW JOINT VENTURE COMPANY BETWEEN THE NATIONAL OIL COMPANY OF KAZAKHSTAN AND CHEVRON CORP SELECTED PARKER TO PROVIDE AND MANAGE THE LABOR FOR EXISTING RIGS OPERATING IN THE FIELD WHICH IS KNOWN TO BE ONE OF THE LARGEST IN THE WORLD AS PART OF THE CONTRACT PARKER WILL ALSO PROVIDE SAFETY PROGRAMS TRAINING AND INVENTORY CONTROL OIL PRODUCTION IN THE TENGIZ FIELD IS DIFFICULT BECAUSE THE FIELD IS UNDER HIGH PRESSURE ENDURES HIGH TEMPERATURES AND CONTAINS LARGE AMOUNTS OF POISONOUS GAS SAID A PARKER SPOKESMAN PARKER HAS PARTICULAR EXPERIENCE IN THIS TYPE OF OIL PRODUCTION AND PREVIOUSLY DEVELOPED PLANS FOR THE TENGIZ FIELD FOR THE SOVIET UNION BEFORE THE 1991 COUP SAID THE SPOKESMAN 9304220062 930422 BUSINESS BRIEF SCHLUMBERGER LTD ACCOUNTING CHANGE RESULTS IN LOSS FOR THE FIRST QUARTER SCHLUMBERGER LTD REPORTED FIRSTQUARTER LOSS OF 1148 MILLION OR 48 CENT A SHARE AS A RESULT OF AN ACCOUNTING CHANGE AND SAID OPERATING PROFIT FELL 15 THE BIG OILFIELD SERVICES COMPANY SAID NET INCOME IN THE LATEST QUARTER INCLUDED A 248 MILLION OR 103 A SHARE CHARGE FOR ACCOUNTING FOR POSTRETIREMENT BENEFITS OTHER THAN PENSIONS WITHOUT THE CHARGE INCOME WAS 1332 MILLION OR 55 CENTS A SHARE A YEAR EARLIER NET INCOME WAS 1563 MILLION OR 65 CENTS A SHARE REVENUE ROSE 3 TO 159 BILLION FROM 155 BILLION EUAN BAIRD CHAIRMAN SAID CONTINUED STRENGTH IN ASIAN INDUSTRIALIZED NATIONS TOGETHER WITH SLOWLY IMPROVING CONDITIONS IN THE US SHOULD INCREASE ENERGY DEMAND AND SPUR RENEWED EXPLORATION AND DEVELOPMENT ACTIVITY WORLDWIDE IN 1994 ALTHOUGH ACTIVE DRILLING RIGS INCREASED 18 IN NORTH AMERICA IN THE QUARTER THE GAIN WAS OFFSET BY DECLINES IN THE REST OF THE WORLD MEASUREMENT AND SYSTEMS REVENUE FELL 4 MAINLY FROM A SIGNIFICANT WEAKENING IN THE EUROPEAN ECONOMY 9304220061 930422 BUSINESS BRIEF TELECOM CORP WATSCO INC AGREES TO BUY CONCERN'S COMFORT SUPPLY TELECOM CORP SAID IT SIGNED A LETTER OF INTENT TO SELL ITS COMFORT SUPPLY INC UNIT TO WATSCO INC TERMS WEREN'T DISCLOSED TELECOM SAID COMFORT SUPPLY BASED IN HOUSTON DISTRIBUTES AIRCONDITIONING AND HEATING EQUIPMENT AND CONTRIBUTED 366 MILLION OF TELECOM'S 64 MILLION OF REVENUE IN 1992 WATSCO BASED IN COCONUT GROVE FLA DISTRIBUTES CENTRAL AIR CONDITIONERS PARTS AND SUPPLIES TELECOM'S CHAIRMAN LAWRENCE W SCHUMANN SAID TELECOM DECIDED TO SELL THE UNIT SO ITS MANAGEMENT CAN FOCUS ON DEVELOPING ITS OTHER HIGHER MARGIN BUSINESSES THE DALLAS HOLDING COMPANY HAS INTERESTS IN THE MANUFACTURE OF CONVEYING EQUIPMENT AND NOVELTY ITEMS THE COMPANY AND ITS INVESTMENT BANKING FIRM RAUSCHER PIERCE REFSNES DALLAS HAVE BEEN EVALUATING WAYS TO IMPROVE SHAREHOLDER VALUE THE SALE IS EXPECTED TO BE COMPLETED WITHIN THE NEXT FEW WEEKS TELECOM SAID 9304220060 930422 INTERNATIONAL BRIEF IMPERIAL CHEMICAL INDUSTRIES PLC ZENECA UNIT SET FOR SPINOFF STARTS YEAR ON FIRM NOTE' IMPERIAL CHEMICAL INDUSTRIES PLC SAID ITS BIOSCIENCE DIVISION ZENECA LTD HAS STARTED 1993 ON A FIRM NOTE WITH PROFITS USEFULLY AHEAD OF A YEAR EARLIER IN ITS PROSPECTUS FOR THE PROPOSED SPINOFF OF ZENECA ICI ALSO SAID IT HAS CALLED A SPECIAL GENERAL MEETING OF THE GROUP FOR MAY 28 TO SEEK SHAREHOLDER APPROVAL FOR THE PREVIOUSLY PROPOSED PLAN IF SUCCESSFUL ICI SAID IT EXPECTS THE SPINOFF TO PROCEED ON JUNE 1 THE BRITISH COMPANY ALSO SAID THAT ZENECA BARRING UNFORESEEN CIRCUMSTANCES PROPOSES TO PAY A DIVIDEND FOR THE WHOLE OF 1993 OF AT LEAST 275 PENCE 426 CENTS A SHARE ZENECA PLANS TO SEEK A LISTING FOR ITS SHARES ON THE NEW YORK STOCK EXCHANGE ICI SHARES RESPONDED POSITIVELY TO THE NEWS JUMPING 41 PENCE OR 34 TO 1236 1915 ICI ALSO SAID THAT RESULTS FROM ITS PHARMACEUTICALS DIVISION FOR THE FIRST QUARTER OF 1993 WERE AHEAD OF THE FIRST QUARTER OF 1992 WITH CONTINUED STRONG SALES OF ZESTRIL ZOLADEX NOLVADEX AND DIPRIVAN ICI SAID THERE HAS BEEN A DECLINE IN SALES OF TENORMIN ITS BETABLOCKER HEART DRUG HOWEVER 9304220059 930422 BUSINESS BRIEF KV PHARMACEUTICAL CO FDA SEIZES DRUGS TO CHECK PLANT PRODUCTION STANDARDS KV PHARMACEUTICAL CO SAID THE FOOD AND DRUG ADMINISTRATION SEIZED SOME OF ITS DRUGS AT ITS ST LOUIS PLANT SO THAT THE FDA CAN DETERMINE WHETHER KV COMPLIED WITH CURRENT GOOD MANUFACTURING PRACTICES THE PHARMACEUTICAL COMPANY WHICH MAKES PRODUCTS MARKETED BY OTHER FIRMS SAID THE SEIZURE APPLIES TO INPROCESS AND FINISHED DRUGS IN SOLIDDOSE FORM AND DOES NOT INCLUDE ITS NONDRUG PRODUCTS SUCH AS VITAMINS A KV SPOKESWOMAN SAID THAT TO OUR KNOWLEDGE THE ACTION DOESN'T AFFECT PRODUCTS ALREADY SHIPPED SHE WOULDN'T ELABORATE ON WHAT TYPES OF DRUGS ARE INVOLVED OR HOW MUCH THOSE DRUGS CONTRIBUTE TO THE COMPANY'S SALES IN THE NINE MONTHS ENDED DEC 31 KV HAD A LOSS OF 196288 OR FIVE CENTS A SHARE ON REVENUE OF 31308407 KV SAID IT IS COOPERATING WITH THE AGENCY TO RESOLVE THESE ISSUES QUICKLY SO SHIPMENTS MAY CONTINUE THE ANNOUNCEMENT CAME AFTER THE CLOSE OF TRADING YESTERDAY IN AMERICAN STOCK EXCHANGE TRADING CLASS A SHARES WERE UP 50 CENTS AT 950 9304220058 930422 INTERNATIONAL BRIEF GALERIES LAFAYETTE SA RETAILER REPORTS A DECREASE OF 81 IN NET INCOME FOR '92 FRENCH RETAILER GALERIES LAFAYETTE SA REPORTED THAT 1992 NET INCOME PLUNGED 81 TO 69 MILLION FRANCS 128 MILLION FROM A PROFORMA 356 MILLION FRANCS IN 1991 THE GROUP'S 1991 PROFIT WAS RECALCULATED TO INCLUDE FULLYEAR DATA FOR NOUVELLES GALERIES SA WHICH WAS ACQUIRED IN THE SECOND HALF PROFIT WOULD HAVE BEEN DOWN 77 COMPARED WITH PUBLISHED RESULTS THE COMPANY SAID IT WOULD MAINTAIN ITS 11 FRANC NET DIVIDEND GALERIES LAFAYETTE SAID ITS RESULTS REFLECT THE POOR ECONOMIC CONDITIONS THAT HAVE PUT A LID ON CONSUMPTION THE 281 MILLION FRANCS OF FINANCIAL COSTS AND 87 MILLION FRANCS OF RESTRUCTURING CHARGES ASSOCIATED WITH THE ACQUISITION OF NOUVELLES GALERIES ALSO WEIGHING ON THE BOTTOM LINE WAS THE 97 MILLION FRANC LOSS AT ITS NEW YORK STORE GALERIES LAFAYETTE SAID IT EXPECTS BETTER RESULTS THIS YEAR THANKS TO DEBT REDUCTION INTEGRATION OF THE PARENT WITH NOUVELLES GALERIES AND A NEW COORDINATED MARKETING SCHEME TO BE LAUNCHED IN THE FALL 9304220057 930422 BUSINESS BRIEF SAFRA REPUBLIC HOLDINGS SA BANKING CONCERN SAYS PROFIT ROSE 20 IN FIRST QUARTER SAFRA REPUBLIC HOLDINGS SA A LUXEMBOURGBASED HOLDING COMPANY FOR FIVE BANKS ACTIVE IN INTERNATIONAL PRIVATE AND COMMERCIAL BANKING SAID NET INCOME CLIMBED 20 TO 272 MILLION IN THE FIRST QUARTER FROM 226 MILLION A YEAR EARLIER AN INCREASE IN THE ANNUAL DIVIDEND TO 225 A SHARE FROM 2 THE YEAR BEFORE WILL BE PROPOSED AT THE ANNUAL STOCKHOLDERS MEETING MAY 12 SAFRA SAID THE SAFRA BANKS OPERATE UNDER THE NAME OF REPUBLIC NATIONAL BANK OF NEW YORK AND ARE LOCATED IN SWITZERLAND FRANCE GUERNSEY AND GIBRALTAR REPUBLIC NEW YORK CORP HOLDS 489 OF THE SHARES IN THE PUBLICLY TRADED COMPANY AND FINANCIER EDMOND J SAFRA HOLDS 208 SAFRA SAID PROFIT WAS BOOSTED BY IMPROVED INTEREST RATE MARGINS IN THE QUARTER NET INTEREST INCOME INCREASED 26 TO 55 MILLION FROM 435 MILLION A YEAR AGO 9304220056 930422 NATIONAL MEDICAL CHIEF SELLS SHARES TO PAY OFF LOANS BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL SANTA MONICA CALIF NATIONAL MEDICAL ENTERPRISES INC SAID ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER RICHARD K EAMER SOLD ALMOST ALL HIS COMPANY STOCK OR ABOUT 25 MILLION SHARES TO PAY PERSONAL LOANS THE SHARES REPRESENTING ABOUT A 14 STAKE IN THE HEALTHCARE SERVICES CONCERN WERE SOLD AT VARIOUS PRICES FROM APRIL 12 TO APRIL 20 THE PRICE FLUCTUATED FROM 675 TO 8375 OVER THOSE DAYS INDICATING THAT THE TOTAL PROCEEDS WERE IN THE AREA OF 19 MILLION THE SHARES CLOSED YESTERDAY AT 825 UP 25 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING IT IS MY UNDERSTANDING THAT THE SALES WEREN'T MR EAMER'S CHOICE SAID DAVID OLSON NATIONAL MEDICAL'S VICE PRESIDENT OF CORPORATE COMMUNICATIONS IF HE HAD HAD HIS DRUTHERS HE WOULD HAVE HELD ON MR OLSON SAID HE UNDERSTOOD THAT THE SHARES WERE PLEDGED TO ONE OR MORE BANKS AS COLLATERAL ON LOANS AND WERE SOLD BY THE BANK OR AT ITS REQUEST BECAUSE THE VALUE OF THE SHARES WAS GOING DOWN IT IS MY UNDERSTANDING THAT ALL OF THE MONEY IS GOING TO THE BANKS HE SAID NATIONAL MEDICAL STOCK TRADED AS HIGH AS 1675 IN THE PAST YEAR THE SHARES WERE SELLING AT ABOUT 24 IN SEPTEMBER 1991 WHEN PROBLEMS AT THE COMPANY'S NOWSHRUNKEN PSYCHIATRIC DIVISION EMERGED JOHN C BEDROSIAN SENIOR VICE PRESIDENT SOLD 395000 SHARES OVER THE SAME PERIOD ALSO TO PAY PERSONAL LOANS MR OLSON SAID THE SALES LEAVE MR BEDROSIAN WITH 176000 SHARES PLEDGED TO VARIOUS LENDERS AND 176000 UNVESTED RESTRICTED SHARES THAT CAN'T BE SOLD FOR SOME TIME MR EAMER RETAINS 12000 SHARES AND 400000 UNVESTED RESTRICTED SHARES NEITHER MR EAMER NOR MR BEDROSIAN WAS AVAILABLE TO COMMENT AND MR OLSON SAID HE DIDN'T HAVE ANY DETAILS ABOUT THE LOANS HE SAID THE LOANS WEREN'T RELATED TO ANY OUTSIDE BUSINESS VENTURES BETWEEN THE TWO MEN ALTHOUGH THEY USE THE SAME BANK THE TWO MEN COFOUNDED THE HEALTHCARE SERVICES CONCERN ALONG WITH A THIRD COMPANY OFFICER THE STOCK SALES COME AT A TIME WHEN NATIONAL MEDICAL IS FACING MYRIAD PROBLEMS INCLUDING PRICING PRESSURES UNCERTAINTIES ABOUT PENDING LITIGATION AND FEDERAL INVESTIGATIONS INTO THE ALLEGED PROBLEMS AT ITS PSYCHIATRIC DIVISION MR EAMER HAS BEEN CRITICIZED FOR PUTTING PRESSURE ON THE COMPANY'S HOSPITALS TO PRODUCE UNREALISTICALLY HIGH PROFITS 9304220055 930422 BUSINESS BRIEF TIMES MIRROR CO MEDIA COMPANY POSTS PROFIT FOR THE FISCAL FIRST QUARTER TIMES MIRROR CO LOS ANGELES SAID IT POSTED FIRSTQUARTER NET INCOME OF 298 MILLION OR 23 CENTS A SHARE COMPARED WITH A LOSS OF 898 MILLION OR 70 CENTS A SHARE IN THE YEAREARLIER QUARTER LAST YEAR'S RESULTS INCLUDED A 1234 MILLION ONETIME CHARGE TO ACCOUNT FOR VOLUNTARY EMPLOYEE REDUCTION PROGRAMS FOR THE QUARTER ENDED MARCH 28 PROFIT FROM CONTINUING OPERATIONS FELL SLIGHTLY TO 271 MILLION OR 21 CENTS A SHARE FROM 275 MILLION OR 21 CENTS A SHARE REVENUE INCREASED 31 TO 8684 MILLION FROM 8424 MILLION IN A STATEMENT ROBERT F ERBURU CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE MEDIA COMPANY WAS CAUTIOUS ABOUT THE OUTLOOK FOR THE YEAR BECAUSE OF CONTINUING SOFTNESS IN NEWSPAPER ADVERTISING REVENUES PARTICULARLY AT THE LOS ANGELES TIMES AND RECENT GOVERNMENTAL ACTION AGAINST THE CABLE INDUSTRY 9304220054 930422 BUSINESS BRIEF GENELABS TECHNOLOGIES INC CONCERN'S NEW CANCER DRUG IS IN CLINICAL TRIAL FOR SAFETY GENELABS TECHNOLOGIES INC SAID ITS NEW CANCER DRUG HAS BEGUN PHASE I CLINICAL TRIALS AT THE UNIVERSITY OF TEXAS' MD ANDERSON CANCER CENTER THE DRUG CALLED GL331 IS DESIGNED TO OVERCOME MULTIPLE DRUG RESISTANCE A CONDITION THAT DEVELOPS IN PATIENTS UNDERGOING CANCER CHEMOTHERAPY IN SOME CASES A PATIENT'S CANCER TUMOR APPEARS TO HAVE A GOOD RESPONSE TO CHEMOTHERAPY AND BEGINS TO DECREASE IN SIZE BUT THEN STARTS TO GROW AGAIN AS THE TUMOR BECOMES DRUGRESISTANT GENELABS A BIOPHARMACEUTICAL CONCERN BASED IN REDWOOD CITY CALIF SAID THE CLINICAL TRIAL WILL INVOLVE ABOUT 20 PATIENTS WITH LATESTAGE CANCERS AND IS EXPECTED TO ESTABLISH THE SAFE DOSAGE LEVEL PHASE I TRIALS ARE EARLY STUDIES OF DRUG SAFETY NOT INTENDED TO DETERMINE THE EFFECTIVENESS OF TREATMENT IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY GENELABS CLOSED AT 6375 UP 375 CENTS 9304220053 930420 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 9304220052 930422 BUSINESS BRIEF CHIPS & TECHNOLOGIES INC NARROWER LOSS IS REPORTED FOR FIRM'S THIRD QUARTER CITING CONTROLS ON EXPENSES CHIPS & TECHNOLOGIES INC SAN JOSE CALIF SAID IT POSTED A NARROWER LOSS FOR ITS FISCAL THIRD QUARTER ENDED MARCH 31 THE SEMICONDUCTOR CONCERN REPORTED A LOSS OF 41 MILLION OR 26 CENTS A SHARE COMPARED WITH A YEARAGO LOSS OF 103 MILLION OR 70 CENTS A SHARE SALES FELL 17 TO 261 MILLION FROM 311 MILLION CHIPS & TECHNOLOGIES BLAMED THE RESULTS ON A SEASONAL DOWNTURN IN DECEMBER QUARTER SALES AND FLUCTUATIONS IN DEMAND AS CUSTOMERS MOVED NEW PRODUCTS INTO PRODUCTION THE COMPANY SAID IT REDUCED ITS OPERATING EXPENSES IN THE QUARTER TO 106 MILLION FROM 224 MILLION FOR THE NINE MONTHS THE COMPANY POSTED A LOSS OF 397 MILLION OR 253 A SHARE COMPARED WITH A LOSS OF 486 MILLION OR 347 A SHARE A YEAR EARLIER SALES DROPPED 29 TO 763 MILLION FROM 108 MILLION 9304220051 930422 MARKETSCAN TUNA FIRMS HOPE NEW BAIT HOOKS BUYERS BY KATHLEEN DEVENY SORRY CHARLIE TUNA SALES ARE SINKING TRUE MORE THAN 80 OF AMERICAN HOUSEHOLDS KEEP A CAN OF TUNA IN THEIR CUPBOARDS BUT DEMAND FOR THE STAPLE KEEPS FALLING AND THE PRODUCT HAS YET TO RECOVER FROM PUBLIC OUTRAGE IN THE 1980S OVER DOLPHINS DYING IN TUNA FISHING NETS EVEN THOUGH ALL MAJOR BRANDS NOW CLAIM TO BE DOLPHIN SAFE ALSO DOGGING TUNA A DOWDY IMAGE AND FEW NEW PRODUCT WRINKLES SINCE WATERPACKED VERSIONS BEGAN TO CATCH ON 20 YEARS AGO CHICKEN OVERSHADOWED TUNA SAYS JOE BERRY CORPORATE DIRECTOR OF CHICKEN OF THE SEA ADDS EVAN SCHLESSINGER NEWPRODUCTS MANAGER FOR BUMBLE BEE TUNA HAS BEEN AROUND FOREVER BUT THERE HAS BEEN LITTLE INNOVATION NOW THE TUNA TITANS STARKIST BUMBLE BEE AND CHICKEN OF THE SEA ARE SPINNING OUT FANCIER PRODUCTS AT AN UNPRECEDENTED PACE BUMBLE BEE OWNED BY UNICORD CO OF THAILAND IS TEST MARKETING TUNA LACED WITH JALAPENO PEPPERS AND RECENTLY INTRODUCED TUNA MIXINS PACKETS OF SEASONINGS FOR LOWFAT TUNA SALAD CHICKEN OF THE SEA OWNED BY VAN CAMP SEAFOOD CO IS ROLLING OUT TUNA PACKED IN CANOLA OIL AND HJ HEINZ CO'S STARKIST PLANS THREE NEW FLAVORS OF ITS CHARLIE'S LUNCH KIT LINE INCLUDING HONEY DIJON AND COUNTRY RANCH THE TOP TUNA MONGERS AREN'T STOPPING THERE THEY ENVISION EVENTUALLY MOVING BEYOND THE CANNED FOOD AISLES IN SUPERMARKETS AND INTO RESTAURANTS AND CAFETERIAS WITH SUCH PRODUCTS AS STARKIST TUNA MELTS AND BUMBLE BEE TUNA BURGERS FISHING FOR NEW MARKETS IS UNDERSTANDABLE CANNED TUNA SALES IN SUPERMARKETS DRUGSTORES AND MASS MERCHANDISERS FELL 5 IN THE 52 WEEKS ENDED MARCH 28 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE THE BIGGEST BRANDS FARED BETTER SALES OF STARKIST THE NATION'S TOPSELLING TUNA ROSE 3 WHILE NO 2 BUMBLE BEE'S SALES CLIMBED 5 BUT SALES OF CHICKEN OF THE SEA SANK 18 WHILE SALES OF THE GEISHA AND THREE DIAMONDS BRANDS FELL 10 AND 17 RESPECTIVELY THERE IS SOME GOOD NEWS FOR MARKETERS OF THE NATIONAL BRANDS BECAUSE THE TUNA TRADE HAS LONG BEEN INTENSELY PRICE COMPETITIVE IT IS ONE OF THE FEW GROCERY CATEGORIES TODAY WHERE PRIVATELABEL GOODS ARE LOSING MARKET SHARE PRIVATELABEL PRODUCTS ACCOUNT FOR 11 OF CATEGORY SALES BUT INFORMATION RESOURCES SAYS SALES FELL 17 IN THE RECENT 52WEEK PERIOD AND BECAUSE THE PRIZE FOR A BIGGER SHARE OF THE 12 BILLION US TUNA MARKET IS SO BIG MARKETERS HAVE PLENTY OF INCENTIVE TO NET MORE CUSTOMERS THIRTYEIGHT PERCENT OF ALL AMERICANS EAT CANNED TUNA AT HOME AT LEAST ONCE EVERY TWO WEEKS ACCORDING TO HARRY BALZER A VICE PRESIDENT OF NPD GROUP A CHICAGO FIRM THAT TRACKS EATING HABITS TUNA CONTINUES TO RANK AS THE NATION'S EIGHTH MOST POPULAR SANDWICH EATEN AT HOME WHAT THIS CATEGORY HAS GOING FOR IT IS ITS ENORMOUS SIZE MR BALZER SAYS THERE IS PLENTY OF ROOM FOR DIFFERENT PRODUCTS TO SATISFY DIFFERENT NEEDS WHAT THE CATEGORY HAS WORKING AGAINST IT IS A BADLY TARNISHED IMAGE ESPECIALLY AMONG KIDS FOR YEARS ENVIRONMENTALISTS URGED CONSUMERS TO BOYCOTT CANNED TUNA BECAUSE THOUSANDS OF DOLPHINS WERE DYING IN NETS USED TO CATCH YELLOWFIN TUNA IN THE PACIFIC OCEAN THE MOVEMENT GAINED SUPPORT IN 1988 AFTER BIOLOGIST SAM LABUDDE TOOK A JOB ON A FISHING BOAT AND CAPTURED ON VIDEOTAPE IMAGES OF DOLPHINS SUFFERING IN FISHING NETS MARKETERS CONCEDE THE CONTROVERSY HURT SALES TO GROCERS AND SUCH FOODSERVICE OUTLETS AS SCHOOL CAFETERIAS SINCE 1990 HOWEVER THE MAJOR BRANDS HAVE PUBLICLY PROMISED THEY WILL NO LONGER BUY YELLOWFIN TUNA CAUGHT BY METHODS THAT KILL DOLPHINS YELLOWFIN IS THE SPECIES USED TO MAKE WHAT MARKETERS CALL LIGHT TUNA PRODUCTS WHITE TUNA COMES FROM ALBACORE TUNA AND WASN'T PART OF THE CONTROVERSY UNDER FEDERAL LAW MARKETERS WHO USE A DOLPHIN SAFE SYMBOL ON CANS MUST COMPLY WITH EXACTING GUIDELINES WE FEEL CONFIDENT THAT CHICKEN OF THE SEA STARKIST AND BUMBLE BEE HAVE HONORED AND ENFORCED THEIR DOLPHINSAFE POLICIES ON A WORLDWIDE BASIS SAYS DAVID PHILLIPS EXECUTIVE DIRECTOR OF EARTH ISLAND INSTITUTE A SAN FRANCISCO MARINE CONSERVATION GROUP MR PHILLIPS SAYS THE MARKETERS' EFFORTS REDUCED DOLPHIN DEATHS IN TUNA NETS TO 20000 IN 1992 FROM 100000 ANNUALLY BEFORE THE DOLPHINSAFE POLICIES YET SOME CONSUMERS AREN'T CONVINCED AND THE CONTROVERSY'S IMPACT ON TUNA SALES HAS LINGERED IN PART SHOPPERS ARE INCREASINGLY SKEPTICAL ABOUT MARKETERS' GREEN CLAIMS BUT EVEN SOME TUNA COMPANIES SAY THEY MAY NOT HAVE DONE A GOOD JOB OF REASSURING THEIR CUSTOMERS OR EXPLAINING THE DOLPHINSAFE LABEL THE DOLPHIN ISSUE HAS BEEN A NEGATIVE SAYS MR BERRY OF CHICKEN OF THE SEA BUT WE AS AN INDUSTRY NEVER HAD ENOUGH MONEY TO MOUNT ANY KIND OF PUBLICRELATIONS CAMPAIGN TOGETHER EVEN IF MARKETERS ULTIMATELY OVERCOME THE FLIPPER FACTOR THEY HAVE OTHER IMAGE PROBLEMS CANNED TUNA IS CHEAP AND RELATIVELY HEALTHFUL BUT IT CONJURES UP MEMORIES OF GLUEY CASSEROLES SERVED IN SCHOOL LUNCHROOMS THERE IS STILL A STIGMA ABOUT TUNA FISH SAYS LINDA SMITHSON PRESIDENT OF FOODWATCH A MINNEAPOLIS FIRM THAT TRACKS FOOD ARTICLES IN MAGAZINES AND NEWSPAPERS NO ONE IS LOOKING FOR THE 1990S VERSION OF THE TUNA CASSEROLE UNDAUNTED BUMBLE BEE IS CONCENTRATING ON WHIPPING UP HIGHERMARGIN ITEMS AIMED MOSTLY AT ADULTS BEST KNOWN FOR ITS PRICIER ALBACORE PRODUCTS THE COMPANY IS TESTING BUMBLE BEE JALAPENO TUNA IN SOUTHWESTERN MARKETS TO APPEAL TO HISPANIC CONSUMERS THE COMPANY IS KEEPING MUM ABOUT PLANS TO EXPAND DISTRIBUTION OF THE PRODUCT BUT MR SCHLESSINGER THE NEWPRODUCTS DIRECTOR SAYS IT HAS PROVED POPULAR WITH NONHISPANIC CONSUMERS BUMBLE BEE PLAYING ON ITS MORE UPSCALE IMAGE IS ROLLING OUT A REFRIGERATED SMOKED SALMON PRODUCT AND MR SCHLESSINGER SAYS HE IS WORKING ON OTHER HIGHERMARGIN PRODUCTS THAT DON'T COME IN CANS ON HIS LIST FROZEN BREADED FISH PRODUCTS AND A PREMIXED TUNA SALAD HE HOPES EVENTUALLY TO SEE BUMBLE BEE TUNA BURGERS AND TUNA STEAK SANDWICHES ON FASTFOOD MENUS I'M A MARKETING GUY HE SAYS AND THIS CATEGORY HAS TRADITIONALLY BEEN DOMINATED BY A PRODUCTION MENTALITY CHICKEN OF THE SEA IS HOPING TO CATCH CONSUMERS' ATTENTION WITH A MORE HEALTHCONSCIOUS PITCH IT'S ABOUT TIME TUNA CAME INTO THE 1990S MR BERRY SAYS FOR ALL ITS OILPACKED TUNA CHICKEN OF THE SEA IS CONVERTING TO CANOLA OIL WHICH IT PITCHES AS A MORE HEALTHFUL ALTERNATIVE TO THE INDUSTRY'S USUAL SOYBEANOIL MARINADE WATERPACKED TUNA ACCOUNTS FOR 80 OF CATEGORY SALES BUT THE COMPANY HOPES A TASTIER PRODUCT WILL REKINDLE SHOPPERS' INTEREST IN OILPACKED TUNA IT ALSO RECENTLY INTRODUCED MERMAID'S LUNCH PACK A CAN OF TUNA BOXED WITH CRACKERS AND PACKETS OF REDUCEDCALORIE MAYONNAISE AND RELISH STARKIST WHICH INTRODUCED THE TUNA SALAD KIT CONCEPT LAST FALL IS ADDING NEW CHARLIE'S LUNCH KIT FLAVORS AS WELL AS VERSIONS WITH LOWFAT DRESSING TO BROADEN ITS PRODUCT LINE AND ADD HIGHERMARGIN PRODUCTS THE COMPANY IS CONSIDERING A FROZEN STARKIST TUNA MELT SANDWICH AIMED AT FOODSERVICE OUTLETS STILL MARKETING ANALYSTS SAY THE SELL WILL BE A HARD ONE EVERYBODY KNOWS TUNA IS INEXPENSIVE VERSATILE AND REASONABLY NUTRITIOUS SAYS STEVE ROTH A DIRECTOR OF RESEARCH INTERNATIONAL CONSULTING NEW YORK BUT IT ISN'T AT THE TOP OF CONSUMERS' LISTS FOR ANY OF THOSE ATTRIBUTES TO REVIVE CANNED TUNA SALES MARKETERS ARE WHIPPING UP SUCH NEW PRODUCTS AS BUMBLE BEE JALAPENO TUNA AND TUNA MIXINS SPICE PACKETS AND CHICKEN OF THE SEA PACKED IN CANOLA OIL 9304220050 930422 MARKETING BRIEF AH BELO CORP FIRSTQUARTER PROFIT JUMPED AT DALLAS MEDIA CONCERN AH BELO CORP SAID ITS FIRSTQUARTER EARNINGS MORE THAN DOUBLED PARTLY BECAUSE OF GROWTH IN ITS PUBLISHING GROUP'S ADVERTISING LINAGE THE DALLAS MEDIA COMPANY SAID NET INCOME FOR THE FIRST QUARTER WAS 139 MILLION OR 70 CENTS A SHARE COMPARED WITH 65 MILLION OR 33 CENTS A SHARE A YEAR EARLIER IN THE MOST RECENT PERIOD NET INCLUDED A GAIN OF 66 MILLION OR 33 CENTS A SHARE FROM THE CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING FOR INCOME TAXES THE YEARAGO NET INCLUDED A ONETIME GAIN OF 32 MILLION OR 16 CENTS A SHARE FROM A SETTLEMENT WITH THE US GOVERNMENT REVENUE FOR THE QUARTER GREW 7 TO 1228 MILLION FROM 115 MILLION LAST YEAR BELO SAID PRETAX EARNINGS FROM PUBLISHING OPERATIONS GREW 43 TO 11 MILLION FROM 77 MILLION A YEAR AGO LARGELY BECAUSE OF INCREASED ADVERTISING LINAGE AS WELL AS ADVERTISING RATE INCREASES AND CIRCULATION GAINS 9304220049 930422 YOUR MONEY MATTERS NERVOUS STRATEGISTS NO LONGER BELIEVE CASH IS TRASH' BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL WALL STREET STRATEGISTS ARE GETTING NERVOUS MANY OF THEM THINK THE LONG BONDMARKET RALLY IS OVER AND SAY IT'S TIME TO SELL SOME BONDS BUT NERVOUS ABOUT THE STOCK MARKET THEY DON'T SUGGEST THAT INVESTORS PLOW THE PROCEEDS INTO STOCKS INSTEAD THEY URGE INVESTORS TO RAISE CASH THAT'S REMARKABLE AT A TIME WHEN THE YIELDS ON CASH INVESTMENTS ULTRASAFE VEHICLES LIKE TREASURY BILLS MONEYMARKET FUNDS AND BANK ACCOUNTS ARE THE LOWEST IN A GENERATION ABOUT 3 IT'S AS IF A FOOD CRITIC WERE TO RECOMMEND A SOFT DRINK KNOWING FULL WELL IT HAS NO FIZZ THE AVERAGE CASH LEVEL RECOMMENDED BY STRATEGISTS AT A DOZEN BROKERAGE HOUSES TRACKED BY THE WALL STREET JOURNAL HAS CLIMBED TO 1425 OF ASSETS THE HIGHEST IN THREE YEARS AND THE AVERAGE BOND ALLOCATION HAS FALLEN TO 2875 THE LOWEST SINCE DECEMBER 1989 FOR STOCKS THE STRATEGISTS ON AVERAGE RECOMMEND AN ALLOCATION OF 57 A SHADE ABOVE NORMAL BUT MANY OF THEM SAY THEY AREN'T WILDLY BULLISH ON STOCKS THEY ARE JUST REACTING TO A LACK OF ATTRACTIVE ALTERNATIVES TO BE SURE PAINEWEBBER INC AND KIDDER PEABODY & CO ARE STICKING WITH THE CASHISTRASH PHILOSOPHY THAT SERVED THEIR CLIENTS WELL IN 1992 AND SO FAR IN 1993 BUT NINE OF THE 12 FIRMS IN THE JOURNAL SURVEY RECOMMEND 15 CASH OR MORE A 10 CASH HOLDING IS OFTEN CONSIDERED NORMAL IT'S NOT THAT I WANT TO HAVE CASH SAYS RAO CHALASANI OF KEMPER SECURITIES INC WHOSE 30 CASH POSITION IS AMONG THE HIGHEST I'M BALANCING PERFORMANCE AGAINST PRUDENCE HE'S NOT ALONE IN FEELING CAUTIOUS SINCE DEC 31 BILL DODGE OF DEAN WITTER REYNOLDS INC RAYMOND WORSECK OF AG EDWARDS & SONS INC AND CHARLES CLOUGH OF MERRILL LYNCH & CO HAVE RAISED THEIR RECOMMENDED CASH ALLOCATIONS AT LEAST FIVE PERCENTAGE POINTS THE QUARTERLY STUDY ESTIMATES HOW INVESTORS WOULD DO BY FOLLOWING THE STRATEGISTS' ASSETALLOCATION ADVICE THE STUDY IS CONDUCTED WITH HELP FROM WILSHIRE ASSOCIATES OF SANTA MONICA CALIF AND ECONOMICS OFFICE OF HANOVER NH ROBIN CARPENTER PRESIDENT OF ECONOMICS OFFICE POINTS OUT THAT GREG SMITH OF PRUDENTIAL SECURITIES INC AND MR DODGE OF DEAN WITTER HAVE THE BEST BONDMARKET TIMING RECORDS IN THE STUDY MR SMITH CURRENTLY HAS ONLY 15 IN BONDS AND MR DODGE ONLY 25 IN THE STUDY'S LATEST SNAPSHOT THE STRATEGISTS WERE CLOSELY BUNCHED BECAUSE STOCKS AND BONDS HAVE GIVEN ROUGHLY EQUAL RETURNS FEW PEOPLE EXPECT THAT UNUSUAL STATE OF AFFAIRS TO LAST THOUGH ALL INVESTMENTS ARE NOT CREATED EQUAL HERE'S A RUNDOWN ON WHAT SOME LEADING STRATEGISTS ARE SAYING THEY ARE LISTED IN ORDER OF 12MONTH PERFORMANCE PAINEWEBBER STRATEGIST EDWARD KERSCHNER THE LEADER FOR THE QUARTER AND 12MONTH PERIOD ENDED IN MARCH EXPECTS STOCKS TO PROVIDE A RETURN OF ABOUT 8 TO 10 THIS YEAR INCLUDING DIVIDENDS THAT'S HALF OF WHAT YOU GOT IN THE '80S BUT THIS AIN'T THE '80S MR KERSCHNER SAYS THAT RETURN IS STILL BETTER THAN BONDS AND TRIPLE THE RETURN ON CASH HE SAYS ACCORDINGLY HIS BLEND IS 69 STOCKS 30 BONDS AND ONLY 1 CASH I THINK THE RISK OF A CORRECTION MARKET DECLINE IS LOW MR KERSCHNER SAYS YOU'D HAVE TO HAVE A BIG RATE PICKUP OR AN ECONOMIC COLLAPSE WHICH SEEMS VERY UNLIKELY KIDDER PEABODY FOR THE FIRST TIME IN A WHILE WE SEE SOME REAL DRAMATIC CURRENTS IN THE MARKET A LOT OF THEM STIRRED UP BY PRESIDENT CLINTON SAYS STRATEGIST EASTON RAGSDALE STILL HE RECOMMENDS 70 STOCKS IT'S NOT THAT STOCKS LOOK SO ATTRACTIVE BUT FIXED INCOME LOOKS LESS ATTRACTIVE AND CASH WORSE YET HE EXPLAINS KIDDER'S ECONOMISTS EXPECT INTEREST RATES TO STAY PUT ABOUT WHERE THEY ARE IF SO BONDS WON'T RISE OR FALL MUCH IN VALUE THEREFORE YOU LOOK AT THE YIELDS THEMSELVES SAYS MR RAGSDALE WITH 30YEAR TREASURY BONDS YIELDING 674 THE YIELD DIFFERENTIAL SUPPORTS BONDS OVER CASH SHEARSON LEHMAN BROTHERS INC SHEARSON'S STRATEGIST MICHAEL SHERMAN RESIGNED THIS MONTH TO JOIN LEON COOPERMAN'S OMEGA ADVISORS INC AS A MONEY MANAGER DURING THE PAST SIX YEARS MR SHERMAN GUIDED INVESTORS WHO FOLLOWED HIS ADVICE TO AN ESTIMATED GAIN OF 1184 SECONDBEST IN THE STUDY CONCERNED ABOUT HIGH STOCK VALUATIONS HE CUT STOCKS FIVE POINTS TO 50 ON DEC 21 AND HAS BEEN CARRYING 15 IN CASH DEAN WITTER THE BOND RALLY IS PROBABLY OVER SAYS MR DODGE HE SAYS MR CLINTON'S ECONOMIC PLAN CONTAINS LESS DEFICIT REDUCTION THAN MEETS THE EYE INFLATION IS ACCELERATING A BIT AND THE ECONOMY IS STRONGER THAN WINTER WEATHER MADE IT LOOK HE SAYS HE BELIEVES RATES ON 30YEAR TREASURY BONDS WILL INCH UP TO 725 OR 75 BY LATE FALL THAT'S WHY HE HAS SLICED HIS BOND ALLOCATION 10 PERCENTAGE POINTS TO THE CURRENT 25 GOLDMAN SACHS & CO COSTRATEGISTS STEVEN EINHORN AND ABBY COHEN CHOPPED THEIR STOCK ALLOCATION 15 PERCENTAGE POINTS LAST QUARTER TO 60 WE HAVE A SUSPENDED BULL SAYS MR EINHORN WE HAVE A STUCK KIND OF MARKET WITH A SAFETY NET PROVIDED BY THE FUNDAMENTALS AND A CEILING PROVIDED BY WASHINGTON MR EINHORN EXPRESSES CONCERN ABOUT ANTIBUSINESS SENTIMENT IN REMARKS BY PRESIDENT CLINTON HE ALSO SEES UNCERTAINTY WITH RESPECT TO THE BUDGET PACKAGE HEALTHCARE REFORM AND CORPORATE TAX RATES MERRILL LYNCH MR CLOUGH CLIPPED FIVE PERCENTAGE POINTS OFF HIS STOCK POSITION LAST QUARTER AND IS HOLDING BONDS AT 30 A BIT BELOW NORMAL FOR HIM I DON'T THINK THE MARKETS ARE GOING TO DO MUCH OF ANYTHING IN THE NEXT FEW MONTHS MR CLOUGH SAYS IN HIS VIEW THE IMPORTANT THING IS TO FOCUS ON INDUSTRIAL COMPANIES ESPECIALLY THOSE THAT ARE DOWNSIZING AND TO AVOID CONSUMER GROWTH STOCKS THAT ARE LOSING PRICING AND PROFIT STRENGTH PRUDENTIAL SECURITIES MR SMITH IS THE STUDY'S LEADER FOR THE PAST FIVE YEARS UP 1001 AND SINCE INCEPTION UP 1253 SINCE JAN 1 1987 HE HAS SLICED HIS BOND ALLOCATION FOUR TIMES THIS YEAR TO THE CURRENT 15 I THINK THE RALLY IN THE GOVERNMENT BOND MARKET HAS BEEN OVERDONE HE SAYS THOUGH HE STILL LIKES JUNK BONDS AND TAXEXEMPT MUNICIPALS STOCKS HE THINKS WILL BEAT BONDS IF YOU PICK THE RIGHT STOCKS I THINK IT WILL LOOK LIKE A BEAR MARKET IN THE OLD LEADERSHIP DRUGS AND CONSUMERPRODUCT COMPANIES MR SMITH SAYS HE SEES STRENGTH IN AUTO STOCKS CAPITALGOODS MAKERS AND AIRLINES KEMPER SECURITIES MR CHALASANI HAS CUT BONDS BACK TO 20 THE LOWEST FIGURE HE CAN REMEMBER WARNING SIGNS FOR THE BOND MARKET HE SAYS INCLUDE A PERKING UP IN THE ECONOMY INDICATIONS THAT INFLATION IS NO LONGER ON THE WANE A DECLINING DOLLAR AND A GENTLE RISE IN THE PRICE OF GOLD THINGS LOOK BETTER FOR STOCKS HE SAYS BUT HE'S WORRIED BY HIGH VALUATIONS AND UNCERTAINTY ABOUT WHAT WILL BE COMING OUT OF WASHINGTON THIS YEAR AG EDWARDS THE BIGGEST BOND ALLOCATION 40 BELONGS TO MR WORSECK WHO COULD FAIRLY BE ACCUSED OF EXCESSIVE DEVOTION TO BONDS IN THE PAST BE THAT AS IT MAY MR WORSECK SAYS PEOPLE TODAY ARE ITCHING TO BUY BONDS TO ESCAPE FROM LOWYIELDING BANK ACCOUNTS SO THE BOND RALLY COULD RUN ON FOR QUITE A WHILE YET BESIDES HE SAYS BOND BULLS DO HAVE SOME GOOD ARGUMENTS INFLATION FEARS ARE OVERBLOWN AND MR CLINTON'S DEFICITREDUCTION PROGRAM SHOULD SLOW THE ECONOMY BY 1995 KEEPING INTEREST RATES LOW PERFORMANCE OF ASSETALLOCATION BLENDS RECOMMEDED BY BROKERAGE HOUSES IN PERIODS ENDED MARCH 31 1993 HOUSES ARE RANKED BY 12MONTH PERFORMANCE ALSO SHOWN IS THE MIX EACH HOUSE NOW RECOMMENDS 9304220048 930422 BUSINESS BRIEF DIGITAL EQUIPMENT CORP WORKERRUN SPINOFF FIRM WILL KEEP A PLANT OPERATING DIGITAL EQUIPMENT CORP ANNOUNCED A WORKERCONTROLLED SPINOFF COMPANY TO HANDLE SOME MANUFACTURING AND SAVE JOBS AT A PLANT PREVIOUSLY TARGETED FOR A COMPLETE SHUTDOWN THE MAYNARD MASSBASED COMPUTER MAKER ANNOUNCED IN OCTOBER IT WOULD CLOSE THE FACTORY IN SPRINGFIELD MASS WHICH EMPLOYED 320 WORKERS ABOUT 100 OF THOSE WORKERS WILL REMAIN WITH THE NEW COMPANY TO BE CALLED SPRINGBOARD TECHNOLOGY CORP THE NEW CONCERN WILL LEASE ABOUT 100000 SQUARE FEET INSIDE THE EXISTING PLANT ABOUT A FIFTH OF ITS TOTAL SPACE DIGITAL HAS ALSO AGREED TO LEASE THE SPECIALIZED TOOLS AND EQUIPMENT NEEDED FOR THE SPINOFF'S OPERATIONS WHICH PREVIOUSLY WERE DIGITAL OPERATIONS THE NEW COMPANY WILL SUPPLY DIGITAL WITH NEW AND RETOOLED DISK AND TAPE DRIVES WHICH STORE COMPUTER INFORMATION AND OTHER SERVICES SPRINGBOARD SAID IT EXPECTS TO SIGN SUPPLY CONTRACTS WITH DIGITAL WITHIN TWO WEEKS AND HOPES TO EVENTUALLY SELL TO OTHER COMPANIES 9304220047 930422 BUSINESS BRIEF LIFETIME CORP FIRSTQUARTER NET ROSE 32 COMPANY STILL SEEKS BUYER LIFETIME CORP POSTED FIRSTQUARTER NET INCOME OF 49 MILLION OR 50 CENTS A SHARE UP 32 FROM 37 MILLION OR 37 CENTS A SHARE A YEAR EARLIER AND SAID IT IS STILL LOOKING FOR A BUYER THE BOSTON HEALTHCARE COMPANY HAS BEEN COURTED RECENTLY BY ABBEY HEALTHCARE GROUP A COSTA MESA CALIF COMPANY WHICH WITHDREW ITS FINAL TAKEOVER BID FOR LIFETIME IN EARLY APRIL LIFETIME'S BUSINESSES ARE HEALTHY AND POISED TO CAPITALIZE ON THE ANTICIPATED EMPHASIS ON HOME HEALTH CARE UNDER HEALTHCARE REFORM SAYS ANTHONY H REEVES LIFETIME'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER AT THE SAME TIME HOWEVER THE BOARD REMAINS COMMITTED TO ITS RECENT DECISION TO MAXIMIZE SHAREHOLDER VALUE IN THE NEAR TERM BY SELLING THE COMPANY OR ITS INDIVIDUAL DIVISIONS LIFETIME A PROVIDER OF HOME HEALTH CARE AND RISKMANAGEMENT ANALYSIS REPORTED FIRSTQUARTER REVENUE OF 2303 MILLION UP FROM 2124 MILLION 9304220046 930422 BUSINESS BRIEF REVCO DS COMPANY SAYS FLU SEASON TO BOLSTER 4THPERIOD NET REVCO DS INC CITING STRONG SALES OF MANAGEDCARE PRESCRIPTIONS AND THE FLU SEASON SAID IT EXPECTS TO EARN BETWEEN 113 MILLION AND 128 MILLION IN THE FISCAL FOURTH QUARTER ENDING MAY 29 REVENUE SHOULD REACH 720 MILLION IN THE QUARTER THE TWINSBURG OHIO COMPANY SAID IT TOLD ANALYSTS AT A MEETING IN ATLANTA IN THE YEAREARLIER PERIOD WHEN IT WAS IN BANKRUPTCYCOURT PROCEEDINGS REVCO EARNED 3061 MILLION WHICH INCLUDED A 6353 MILLION GAIN ON DEBT DISCHARGE AND A 3385 MILLION CHARGE RELATED THE COMPANY'S REORGANIZATION REVENUE IN THE PERIOD WAS 6606 MILLION FOR THE FISCAL YEAR REVCO EXPECTS TO EARN BETWEEN 135 MILLION AND 15 MILLION ON SALES OF 22 BILLION FOR FISCAL 1992 REVCO EARNED 2977 MILLION WHICH ALSO INCLUDED THE 6353 MILLION GAIN AND A 3569 MILLION REORGANIZATION CHARGE REVENUE WAS 21 BILLION THE DRUGSTORE CHAIN ALSO SAID ITS RECENT RECAPITALIZATION SHOULD SAVE IT MORE THAN 20 MILLION IN INTEREST COSTS 9304220045 930422 BUSINESS BRIEF FOREST OIL CORP FIRM TO BUY ARCO'S STAKE IN SOME GULF OF MEXICO SITES FOREST OIL CORP SAID IT AGREED TO BUY ATLANTIC RICHFIELD CO'S INTERESTS IN CERTAIN OFFSHORE GULF OF MEXICO PROPERTIES FOR 415 MILLION THE PROPERTIES CONTAIN 17 PRODUCING WELLS ON SIX BLOCKS IN THE GULF WITH ARCO'S SHARE OF DAILY PRODUCTION BEING 68 MILLION CUBIC FEET OF NATURAL GAS AND 1200 BARRELS OF OIL ARCO IS BASED IN LOS ANGELES FOREST WILL FINANCE THE ACQUISITION WITH A PRODUCTION PAYMENT FROM ENRON GAS SERVICES CORP A UNIT OF ENRON CORP OF HOUSTON DETAILS OF THE AGREEMENT BETWEEN ENRON AND FOREST HAVEN'T BEEN COMPLETED BUT IT INVOLVES THE PREPAYMENT FOR CERTAIN VOLUMES OF NATURAL GAS TO BE DELIVERED OVER A 2 1/2YEAR PERIOD A FOREST SPOKESWOMAN SAID IN DENVER THE ACQUISITION SUBJECT TO FEDERAL AGENCY APPROVALS FOR ANTITRUST CONCERNS IS EXPECTED TO BE COMPLETED BY APRIL 30 9304220044 930422 BUSINESS BRIEF CLAYTON DUBILIER & RICE INC OPERATING PROFIT DOUBLED AT LEXMARK UNIT IN 1992 LEXMARK INTERNATIONAL INC SAID OPERATING PROFIT MORE THAN DOUBLED IN 1992 THE FORMER INTERNATIONAL BUSINESS MACHINES CORP SUBSIDIARY SAID WORLDWIDE SHIPMENTS OF IBM PERSONAL PRINTERS GREW BY 20 AND THE COMPANY'S TYPEWRITER AND SUPPLIES BUSINESSES BOTH SUBSTANTIALLY EXCEEDED FINANCIAL TARGETS THE CLOSELY HELD COMPANY SAID REVENUE WAS ABOUT 2 BILLION IT DIDN'T PROVIDE NETINCOME FIGURES IBM SOLD LEXMARK BASED IN LEXINGTON KY IN MARCH 1991 IN A LEVERAGED BUYOUT TO CLAYTON DUBILIER & RICE INC FOR ABOUT 15 BILLION SADDLING THE COMPANY WITH ABOUT 950 MILLION IN DEBT SINCE THEN LEXMARK SAID DEBT HAS BEEN REDUCED TO BELOW 700 MILLION LEXMARK DEVELOPS MANUFACTURES AND MARKETS IBM PERSONAL PRINTERS IBM TYPEWRITERS RELATED SUPPLIES AND KEYBOARDS 9304220043 930422 BUSINESS BRIEF WHIRLPOOL CORP FIRM POSTS QUARTERLY LOSS BECAUSE OF SPECIAL CHARGES WHIRLPOOL CORP'S FIRSTQUARTER OPERATING RESULTS STRENGTHENED BUT SPECIAL CHARGES GAVE THE APPLIANCE CONCERN A BIG NET LOSS THE BENTON HARBOR MICH COMPANY REPORTED A DEFICIT OF 162 MILLION OR 227 A SHARE IN THE YEARAGO PERIOD IT HAD NET INCOME OF 35 MILLION OR 50 CENTS A SHARE REVENUE INCREASED 58 TO 176 BILLION FROM 166 BILLION WHIRLPOOL'S BOTTOM LINE WAS PUSHED INTO THE RED BY TWO UNUSUAL ITEMS ONE WAS A 180 MILLION OR 252 A SHARE AFTERTAX CHARGE TO REFLECT THE EFFECT OF AN ACCOUNTING CHANGE MOST COMPANIES ARE OBLIGED TO ADOPT THE OTHER WAS LESS ROUTINE AN EARLIERANNOUNCED CHARGE OF 40 MILLION OR 56 CENTS A SHARE TO WRITE DOWN THE VALUE OF AEROSPACE AND COMMERCIAL ASSETS HELD BY ITS FINANCE UNIT ABSENT THOSE CHARGES WHIRLPOOL'S EARNINGS WOULD HAVE SHOWN A 62 INCREASE TO 58 MILLION 9304220042 930422 BUSINESS BRIEF GENERAL SIGNAL CORP FIRM HAD 1STQUARTER PROFIT AGAINST YEAREARLIER LOSS GENERAL SIGNAL CORP REPORTED A FIRSTQUARTER PROFIT AGAINST A LOSS IN THE 1992 QUARTER WHEN IT TOOK A 924 MILLION CHARGE TO REFLECT ACCOUNTING CHANGES THE EQUIPMENT AND INSTRUMENT COMPANY POSTED FIRSTQUARTER NET INCOME OF 175 MILLION OR 88 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 775 MILLION OR 401 A SHARE THE 1992 PERIOD INCLUDED A CHARGE OF 478 A SHARE FROM THE NET EFFECT OF ACCOUNTING CHANGES FOR RETIREE HEALTH BENEFITS AND INCOME TAXES EARNINGS FROM CONTINUING OPERATIONS ROSE 17 FROM A YEAR EARLIER THE STAMFORD CONN COMPANY ATTRIBUTED THE IMPROVED RESULTS TO COST CONTROLS AND STRENGTH IN ITS INDUSTRIALTECHNOLOGY SECTOR WHICH OFFSET WEAKNESS IN ITS ELECTRICALCONTROLS BUSINESS TIED TO LOWER UTILITY DEMAND FOR TRANSFORMERS AND THE WEAK EUROPEAN ECONOMY SALES FOR THE QUARTER FELL TO 3631 MILLION FROM 4119 MILLION A YEAR EARLIER WHICH INCLUDED SALES OF 469 MILLION FOR SEMICONDUCTOREQUIPMENT OPERATIONS THAT THE FIRM DIVESTED AT YEAR END 9304220041 930422 HEARD ON THE STREET BOEING PROFIT MAY BE HEADING FURTHER SOUTH BUT MONEY MANAGERS CALL ITS STOCK A BARGAIN BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL BOEING'S EARNINGS ARE EXPECTED TO GO FROM BAD THIS YEAR TO WORSE IN 1994 THAT OUTLOOK MIGHT SEEM LIKE A SOUND REASON TO STEER CLEAR OF THE STOCK BUT A GROWING COMMUNITY OF SMART MONEY MANAGERS SAY NOW'S A GOOD TIME TO BUY WITH THE SHARES SELLING AT ABOUT EIGHT TIMES THE PAST YEAR'S PERSHARE EARNINGS THE STOCK IS A BARGAIN THEY SAY YESTERDAY BOEING CLOSED AT 37 1/2 UP 1/2 ALLIANCE CAPITAL MANAGEMENT'S AIRLINE ANALYST TIM PETTEE THIS MONTH UPGRADED HIS RATING ON THE STOCK USED INTERNALLY BY THE FIRM'S PORTFOLIO MANAGERS TO THE FIRM'S SECOND HIGHEST RANKING BIG INSTITUTIONS SAID TO BE BUYING THE STOCK INCLUDE FIDELITY INVESTMENTS THE BOSTON MUTUAL FUND MANAGER AND SMITH BARNEY HARRIS UPHAM'S ASSET MANAGEMENT DIVISION BOTH FIDELITY AND SMITH BARNEY DECLINED TO COMMENT TO BE SURE EVEN SOME BULLISH INVESTORS CAUTION THAT THE STOCK MIGHT DIP BELOW ITS CURRENT LEVEL BEFORE HEADING BACK UP TO THE 60 RANGE IT'S PROBABLY TOO EARLY FOR MOST INVESTORS UNLESS THEY HAVE A THREEYEAR HORIZON SAYS PETER ASERITIS AN ANALYST WITH FIRST BOSTON SOME INVESTORS BELIEVE BOEING WILL HIT ITS BOOK VALUE OF BETWEEN 24 AND 25 A SHARE DEPENDING ON HOW YOU FIGURE BEFORE IT REBOUNDS BUT SOME SAVVY INVESTORS ARE BETTING THAT BOEING'S STOCK PRICE MAY BE VERY NEAR ITS BOTTOM THEY BELIEVE BOEING'S STOCK PRICE MORE CLOSELY FOLLOWS THE DIRECTION OF ITS ORDERS FOR AIRPLANES THAN THE DIRECTION OF ITS EARNINGS THE IDEA HAS HELD UP IN THE PAST FOR EXAMPLE BOEING'S STOCK PEAKED IN AUGUST OF 1990 AT 63 FOLLOWING A PEAK OF 874 AIRPLANE ORDERS FOR THE SEATTLEBASED COMPANY IN 1989 BUT WHEN THE COMPANY'S EARNINGS PEAKED LAST YEAR AT 457 A SHARE BEFORE A BIG CHARGE RELATED TO RETIREEBENEFIT ACCOUNTING BOEING'S STOCK PRICE TUMBLED AS INVESTORS FOCUSED ON THE AIRLINE INDUSTRY'S TROUBLES MR PETTEE BELIEVES THE WORST NEWS CONCERNING ORDERS FOR BOEING IS OUT FOLLOWING UNITED AIRLINES' RECENT DISCLOSURE OF AN AGREEMENT TO DEFER ORDERS AT WORST I'M A LITTLE EARLY HE SAYS AND IF MORE ORDERS ARE ON THE WAY IT'S DEFINITELY TIME TO BUY SOME INVESTORS BUYING THE STOCK ARE BUOYED BY SPECULATION THAT BOEING WILL SOON RECEIVE AN ORDER THAT COULD REACH 4 BILLION FROM CONTINENTAL AIRLINES WHICH COULD EMERGE FROM BANKRUPTCYCOURT PROCEEDINGS WITHIN THE NEXT MONTH THAT ORDER WOULD INCLUDE BOEING'S 737 757 767 AND 777 AIRPLANES THE STREET THINKS THE FINANCING WILL COME FROM A GENERAL ELECTRIC UNIT BOEING AND GE WOULDN'T COMMENT TOGETHER WITH RECENT ORDERS FROM INTERNATIONAL LEASE FINANCE AND UNITED PARCEL SERVICE IN ADDITION TO AN ANTICIPATED ORDER FROM SAUDIA THE SAUDI AIRLINE THE TIDE COULD BE TURNING MR PETTEE SAYS OTHER INVESTORS HAVE DIFFERENT REASONS FOR BUYING THE STOCK ROBERT TORRAY A BETHESDA MD MONEY MANAGER WHO OVERSEES AN INVESTMENT PORTFOLIO OF 16 BILLION INVESTED ABOUT 24 MILLION IN BOEING STOCK IN RECENT MONTHS I DON'T HAVE ANY GREAT EXPECTATIONS FOR THE STOCK OVER THE NEXT THREE YEARS HE SAYS BUT IT'S A GREAT COMPANY WITH A 60 MARKET SHARE WORLDWIDE MR TORRAY SAYS HE PREFERRED TO TAKE A CHANCE ON BUYING THE STOCK EARLY RATHER THAN MISSING A RALLY WHEN INSTITUTIONAL BUYERS COME IN THE STOCK WILL GO TO 50 FAST HE SAYS SO I FIGURE YOU GET POSITIONED EARLY AND YOU WANT TO BE ABLE TO SELL AS INSTITUTIONAL BUYERS COME IN COOKE & BIELER A PHILADELPHIA MONEY MANAGER DOUBLED ITS INVESTMENT IN BOEING IN THE FIRST QUARTER TO 140 MILLION FROM 70 MILLION FOR SIMILAR REASONS BOEING'S STOCK MAY ALSO BE HELPED BY THE NOTION AMONG INVESTORS THAT RECENT GOOD NEWS FOR THE AIRLINES ALSO WILL BENEFIT BOEING THE AIRLINES HAVE GARNERED THE DIRECT INTEREST OF THE WHITE HOUSE SAYS WOLFGANG DEMISCH AN ANALYST WITH UBS SECURITIES A SELFPROFESSED BATTERED BULL ON THE STOCK HE BEGAN RECOMMENDING THE STOCK TO CLIENTS IN AUGUST 1992 SHORTLY BEFORE THE STOCK TOOK A PLUNGE IN THE FOURTH QUARTER TO THE MID30S BOND BEAR TRADERS SAY BIGTIME MONEY MANAGER GEORGE SOROS IS TURNING SKEPTICAL ON US BONDS TAKING UP SIZABLE SHORT OR BEARISH POSITIONS IN THE US TREASURY DEBT MARKET OVER THE PAST SEVERAL DAYS THEY SAY THAT MR SOROS WHO RUNS THE OFFSHORE QUANTUM FUND HAS BEEN BETTING IN THE FUTURES MARKETS AGAINST LONGTERM TREASURY BONDS AND THAT HE HAS ALSO MADE BEARISH BETS ON SHORTERTERM NOTES MR SOROS WON'T CONFIRM THE MOVES OR COMMENT ON HIS STRATEGY BUT A MONTHSLONG PRICE RALLY IN THE LONGTERM BOND MARKET HAS HIT A PLATEAU LATELY AS SOME OTHER INVESTORS BEGAN TO WORRY ABOUT A REVIVAL OF INFLATION 9304220040 930422 BUSINESS BRIEF DATA GENERAL CORP COMPUTER MAKER HAD A LOSS OF 76 MILLION IN 2ND PERIOD DATA GENERAL CORP CITING SOFT WORLD ECONOMIC CONDITIONS AND PRICE COMPETITION REPORTED A FISCAL SECONDQUARTER LOSS OF 76 MILLION OR 22 CENTS A SHARE ON A 2 REVENUE DECLINE IN THE YEARAGO QUARTER THE WESTBORO MASS COMPUTER MAKER HAD A LOSS OF 553 MILLION OR 169 A SHARE AFTER A 48 MILLION RESTRUCTURING CHARGE REVENUE FOR THE MOST RECENT QUARTER ENDED MARCH 27 WAS 2674 MILLION COMPARED WITH 2738 MILLION IN THE YEARAGO PERIOD DATA GENERAL SAID REVENUE WAS ALSO HURT BY UNFAVORABLE FOREIGNEXCHANGE RATES ABOUT ONETHIRD OF THE COMPANY'S REVENUE COMES FROM EUROPE FOR THE SIX MONTHS DATA GENERAL REPORTED A LOSS OF 68 MILLION OR 20 CENTS A SHARE COMPARED WITH A LOSS IN THE SAME PERIOD LAST YEAR OF 513 MILLION OR 158 A SHARE AFTER THE CHARGE REVENUE WAS 5471 MILLION COMPARED WITH 5686 MILLION IN THE YEAREARLIER HALF 9304220039 930422 BUSINESS BRIEF CIRCLE K CORP REORGANIZATION PLAN TO WIN JUDGE'S APPROVAL BY JUNE 7 CIRCLE K CORP PHOENIX SAID IT EXPECTS TO EMERGE FROM BANKRUPTCY PROCEEDINGS BY JUNE 7 THE DATE BY WHICH A FEDERAL JUDGE SAID HE WILL CHOOSE BETWEEN COMPETING REORGANIZATION PLANS TESTIMONY ENDED TUESDAY IN HEARINGS BEFORE BANKRUPTCY JUDGE GEORGE B NIELSEN JR WHO GAVE ATTORNEYS UNTIL MAY 4 TO FILE FINAL BRIEFS A MANAGEMENTBACKED PLAN WOULD SELL THE CONVENIENCESTORE CHAIN TO CK ACQUISITIONS CORP A UNIT OF INVESTCORP INTERNATIONAL INC A BAHRAIN HOLDING COMPANY FOR 3995 MILLION CK ACQUISITIONS WHICH HAD SET A MAY 5 DEADLINE FOR COURT APPROVAL OF THE PLAN AGREED TO EXTEND THE DEADLINE TO JUNE 7 A BONDHOLDERS GROUP WHICH WOULD RECEIVE NOTHING UNDER THE PLAN ARGUED MANAGEMENT UNDERVALUED THE COMPANY BY SEVERAL HUNDRED MILLION DOLLARS AND PROPOSED AN ALTERNATIVE PLAN UNDER WHICH MOST CREDITORS WOULD RECEIVE NEW DEBT AND EQUITY IN THE REORGANIZED COMPANY BUT IT FAILED TO WIN OTHER CREDITOR GROUPS' SUPPORT 9304220038 930422 BUSINESS BRIEF BUSINESS RECORDS CORP FIRM AGREES TO BUY CMSI AND UNIT FOR 316 MILLION BUSINESS RECORDS CORP SAID IT AGREED TO PURCHASE THE OUTSTANDING SHARES OF CLOSELY HELD CMSI INC AND A RELATED UNIT FOR 316 MILLION CMSI BASED IN PORTLAND ORE PROVIDES OUTSOURCING CONSULTING AND OTHER SERVICES IN THE INFORMATIONSERVICES AREA BUSINESS RECORDS A DALLAS PROVIDER OF INFORMATION SERVICES TO LOCAL GOVERNMENTS SAID IT WILL PAY AN ADDITIONAL 46 MILLION TO RETIRE A CMSI EMPLOYEE STOCK VALUATION BENEFIT PLAN FOR NONCOMPETE AGREEMENTS AND FOR A FEE TO AN EMPLOYEE WHO PLAYED A KEY ROLE IN THE TRANSACTION CERTAIN CONTINUING KEY EMPLOYEES OF CMSI WILL RECEIVE OPTIONS TO BUY 950000 SHARES OF BUSINESS RECORDS COMMON STOCK AT 2250 A SHARE THE COMPANY SAID BUSINESS RECORDS STOCK CLOSED YESTERDAY AT 2325 UP 50 CENTS IN NATIONAL OVERTHECOUNTER TRADING BUSINESS RECORDS ALSO SAID IT EXPECTS TO RECORD SECONDQUARTER CHARGES OF AT LEAST 7 MILLION TO COVER CMSI'S RESEARCH AND DEVELOPMENT ON A SOFTWARE PROJECT IF IT COMPLETES THE ACQUISITION AS EXPECTED BUSINESS RECORDS SAID CMSI REPORTED REVENUE OF 311 MILLION FOR THE FISCAL YEAR ENDED OCT 31 9304220037 930422 CREDIT MARKETS CORPORATE MUNICIPAL ISSUERS LAUNCH BIG WAVE OF DEBT IN RUSH TO SEIZE ON CURRENT LOW RATES BY TERENCE DONNELLY AND THOMAS D LAURICELLA STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK COMPANIES CITIES AND STATES SOLD MORE THAN 45 BILLION OF NEW NOTES AND BONDS AS THEY RUSHED TO TAKE ADVANTAGE OF CURRENT LOW INTEREST RATES TREASURY NOTES AND BONDS ROSE SLIGHTLY WITH THE BENCHMARK 30YEAR TREASURY BOND ENDING WITH A GAIN OF JUST 1/32 POINT AT 104 26/32 THE YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF THE PRICE CLOSED AT 674 LITTLE CHANGED FROM TUESDAY BUT STILL NEAR ITS LOWEST LEVELS SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF 30YEAR BONDS IN 1977 THE 10YEAR NOTE ROSE 1/32 TO 102 28/32 TO YIELD 585 LITTLE CHANGED FROM TUESDAY AIRLINE BONDS SURGED AFTER AMR CORP REPORTED BETTERTHANEXPECTED RESULTS WHILE A HOST OF COMPANIES RAISED MORE THAN 26 BILLION OF NEW DEBT IN BRISK NEWISSUE ACTIVITY AMONG THE COMPANIES TAKING ADVANTAGE OF THE LOW INTEREST RATES WERE UTILITY COMMONWEALTH EDISON CO WHICH SOLD 220 MILLION OF 20YEAR FIRST MORTGAGE BONDS AND FINANCIALSERVICES COMPANY SUNAMERICA INC WHICH SOLD 100 MILLION OF 30YEAR DEBENTURES BUT MOST OF YESTERDAY'S CORPORATE ISSUERS SOLD NOTES MATURING IN 10 YEARS OR LESS SECONDARY ACTIVITY AMONG SEASONED ISSUES WAS MODEST BY COMPARISON ALTHOUGH SMALL INVESTORS CONTINUED TO SNAP UP SHORTTERM ISSUES OF BANKS AND FEDERAL AGENCIES SUCH AS THE FEDERAL HOME LOAN BANKS AMONG THE BROADER SECONDARY MARKET MOST ISSUES ENDED LITTLE CHANGED AS THE INTERESTRATE GAP BETWEEN CORPORATE BOND YIELDS AND COMPARABLE TREASURYS WAS LITTLE CHANGED JUNK BONDS ENDED FIRM AS INVESTORS TRICKLED BACK FROM MERRILL LYNCH & CO'S HIGHYIELD CONFERENCE IN BOCA RATON FLA HIGHYIELD INVESTORS REMAIN CONCERNED ABOUT A GROWING NUMBER OF JUNK BONDS BEING CALLED IN THE NEXT 12 MONTHS SAID ONE PORTFOLIO MANAGER WHO ATTENDED THE MERRILL CONFERENCE EVEN IF INTEREST RATES REMAIN STABLE IN THE MONTHS AHEAD A LARGE NUMBER OF COMPANIES ARE GOING TO CALL THEIR HIGHERCOUPON SECURITIES AND ISSUE NEW BONDS AT DRAMATICALLY LOWER YIELDS THE INVESTOR SAID WHAT AM I GOING TO DO WHEN I COME TO WORK AND FIND THAT 100 MILLION OF MY HIGHERCOUPON BONDS WILL DISAPPEAR SOON I'M GOING TO HAVE TO BUY SOMETHING BUT THE NEW ISSUES PRICED LATELY JUST HAVEN'T BEEN THAT ATTRACTIVE NEW JUNK BONDS CONTINUE TO BE PRICED AT RELATIVELY LOW YIELDS SOME HAVE YIELDED LESS THAN 9 IN SHARP CONTRAST TO A FEW YEARS AGO WHEN 12 AND 13 COUPONS WERE THE RULE AMONG RECENT OFFERINGS PAYLESS CASHWAYS INC OFFERED 10YEAR SENIOR SUBORDINATED NOTES PAYING 9125 INTEREST ETHAN ALLEN INTERIORS INC SOLD EIGHTYEAR SENIOR NOTES PAYING 875 INTEREST BONDS OF AMR PARENT OF AMERICAN AIRLINES AND THOSE OF DELTA AIR LINES AND UAL CORP TRADED HIGHER AFTER AMR REPORTED STRONGERTHANEXPECTED FIRSTQUARTER RESULTS ANALYSTS SAID AMR'S LOSS OF 43 CENTS A SHARE WAS NARROWER THAN ANTICIPATED FURTHER THE RESULTS SHOW THAT THE COMPANY'S DOMESTIC REVENUES ARE IMPROVING AND COSTS ARE BEING HELD DOWN BONDS OF ALL THREE AIRLINES TRADED UP ON THE AMR REPORT OF SMALLERTHANEXPECTED LOSSES LATE YESTERDAY TRADERS SAID AMR 30YEAR BONDS WERE TRADING ABOUT 205 PERCENTAGE POINTS ABOVE THE YIELD OF THE 30YEAR TREASURY BOND DELTA 30YEAR BONDS WERE TRADING 310 PERCENTAGE POINTS ABOVE TREASURYS WHILE UAL 30YEAR BONDS WERE TRADING 220 PERCENTAGE POINTS ABOVE TREASURYS ACCORDING TO ONE TRADER THE INTERESTRATE GAP BETWEEN THESE AIRLINE ISSUES AND COMPARABLE TREASURY SECURITIES HAS NARROWED BY 005 TO 010 PERCENTAGE POINT SINCE EARLY TUESDAY A SIGN OF GROWING DEMAND BESIDES THE ATTRACTIVE YIELDS THERE'S ANOTHER REASON TO BUY AIRLINE PAPER NOW INVESTORS SAID THESE BONDS WERE TRADING ONLY ONE PERCENTAGE POINT ABOVE TREASURYS A YEAR AGO WHEN THE ECONOMY WAS WEAKER THAN IT IS NOW SAID JAMES HO WHO MANAGES JOHN HANCOCK SOVEREIGN BOND FUND ASSUMING THAT DOMESTIC AIRLINE BUSINESS CONTINUES TO IMPROVE THESE BONDS ARE CLEARLY UNDERVALUED GEOFFREY KURINSKY PORTFOLIO MANAGER AT MFS BOND FUND AGREES AS LONG AS AIRLINES CONTAIN THEIR COSTS AND FARE COMPETITION DOESN'T GET OUT OF HAND GOING INTO JULY I THINK THESE BONDS ARE GOING TO KEEP IMPROVING CALIFORNIA'S NEWLY ISSUED 1993 SERIES A REVENUE ANTICIPATION NOTES WERE YIELDING 250 AT THE CLOSE THAT'S THE SAME YIELD THE 3 BILLION OF RANS HAD TUESDAY WHEN THEY WERE PRICED BY A LEHMAN BROTHERS GROUP WITH TREASURYS HOLDING FIRM AND DEMAND IN THE PRIMARY TAXEXEMPT MARKET QUITE STRONG ACTIVELY TRADED MUNIS ARE WITHSTANDING THE LATEST SUPPLY DELUGE THAT WASN'T THE CASE LAST MONTH HOWEVER BECAUSE OF RAPIDFIRE MUNI PRICINGS AND THE TREASURY BOND MARKET'S SLUMP IN MARCH PRICES OF ACTIVELY TRADED TAXEXEMPT BONDS TUMBLED THE TWO LARGEST MUNICIPAL ISSUES PRICED YESTERDAY WERE THE LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY'S 5607 MILLION OF SERIES 1993A SALESTAX REVENUE REFUNDING BONDS AND THE NEW JERSEY TRANSPORTATION TRUST FUND AUTHORITY'S 500 MILLION OF 1993 SERIES A TRANSPORTATION SYSTEM BONDS TRADERS SEARCHING FOR EXCITEMENT ONCE AGAIN HAD TO LOOK OUTSIDE THE TREASURY MARKET WHERE NOTES AND BONDS ENDED A QUIET SESSION WITH SMALL GAINS YESTERDAY WAS ANOTHER IN A STRING OF SESSIONS WHERE DEALERS FOUND LITTLE REASON TO PUSH THE MARKET SIGNIFICANTLY IN EITHER DIRECTION BOTH THE 30YEAR BOND AND 10YEAR NOTE ROSE JUST 1/32 POINT YESTERDAY WITH MOST OTHER TREASURY SECURITIES POSTING SIMILARLY SMALL GAINS IT WAS BASICALLY A VERY QUIET LISTLESS TRADING SESSION SAID LAWRENCE LEUZZI HEAD OF FIXED INCOME AT SG WARBURG & CO WE'RE IN THE DOLDRUMS WITH REGARD TO NEW ECONOMIC INFORMATION INSTITUTIONAL INVESTORS REMAIN GLUED TO THE SIDELINES AND ONLY A HANDFUL OF SPECULATIVE TRADING ACCOUNTS WERE INVOLVED IN THE MARKET PLAYERS SAID DEALERS CITED ONLY TWO NOTEWORTHY SOURCES OF ACTIVITY YESTERDAY AT MIDMORNING PRICES GOT A SMALL BOOST AS TRADERS REPORTED THE FEDERAL RESERVE CONDUCTED UNANNOUNCED PURCHASES OF INTERMEDIATE SECURITIES APPARENTLY ACTING AS THE AGENT FOR A FOREIGN CENTRAL BANK AT THE SAME TIME PLAYERS REPORTED SCATTERED BUYING OF INTERMEDIATES RELATED TO MUNICIPAL DEFEASANCE IN A DEFEASANCE PLAN STATE AND LOCAL GOVERNMENTS PAY DOWN OLDER HIGHERINTEREST DEBT BY ISSUING SECURITIES AT THE CURRENT LOWER RATES BUT UNTIL THE OUTSTANDING DEBT CAN BE CALLED THE PROCEEDS FROM THE NEW OFFERING ARE INVESTED IN TREASURYS TRADERS CONTINUED TO IGNORE THE PLIGHT OF THE SAGGING DOLLAR WHICH WAS TRADING LATE YESTERDAY NEAR ITS LOWEST LEVEL SINCE WORLD WAR II AT 11071 YEN A STEEP DECLINE IN THE DOLLAR CAN BE DAMAGING TO US SECURITIES MARKETS AS IT CAN MAKE HOLDING US ASSETS UNPROFITABLE IN ADDITION A LOWER DOLLAR CAN BE INFLATIONARY AS IT EFFECTIVELY RAISES THE COST OF IMPORTED GOODS TREASURYS HAVE ALSO BEEN SPARED ANY SIGNIFICANT IMPACT FROM THE HEIGHTENED PACE OF NEW ISSUANCE IN THE CORPORATE MUNICIPAL AND MORTGAGEBACKED MARKETS TRADERS SAID HEDGING PRESSURES HAVE NOT BEEN HEAVY BECAUSE SO FAR MOST OF THE NEW ISSUANCE APPEARS TO BE WELL RECEIVED THE MARKET HAS ALSO BRUSHED ASIDE EVENTS IN WASHINGTON WHERE PRESIDENT CLINTON HAS BEEN FORCED TO SHARPLY CUT BACK HIS FISCAL STIMULUS PLAN IN HOPES OF BREAKING A REPUBLICAN FILIBUSTER MEANWHILE THE TREASURY ANNOUNCED THAT IT WILL SELL 1525 BILLION OF TWOYEAR NOTES NEXT TUESDAY AND 110 BILLION OF FIVEYEAR NOTES NEXT WEDNESDAY UNCHANGED FROM LAST MONTH'S OFFERINGS IN LATE WHENISSUED TRADING THE TWOYEAR NOTE WAS YIELDING 378 WHILE THE FIVEYEAR NOTE WAS YIELDING 505 PRICES OF MORTGAGE SECURITIES ENDED SLIGHTLY HIGHER WHILE 1 BILLION OF NEW REAL ESTATE INVESTMENT CONDUIT DEALS WERE ANNOUNCED PRICE GAINS OF AS MUCH AS 5/32 WERE POSTED BY 7 MORTGAGE SECURITIES ISSUED FOR MAY DELIVERY BY ALL THREE AGENCIES GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES GAINED 5/32 TO 101 15/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES CLIMBED 3/32 TO 101 19/32 AND 101 13/32 RESPECTIVELY TWO NEW FANNIE MAE DEALS TOTALING 1 BILLION BROUGHT THE TOTAL OF NEW AGENCY REMICS AND STRIPS SECURITIES ANNOUNCED SO FAR THIS WEEK TO MORE THAN 6 BILLION COLLATERAL FOR THE TWO NEW DEALS WAS STRIPS TRUST 221 WHICH WAS IN TURN BACKED BY FANNIE MAE 75 ISSUES IN THE ASSETBACKED SECURITIES MARKET DEERE & CO OFFERED A 600 MILLION ISSUE OF FLOATINGRATE CERTIFICATES BACKED BY AGRICULTURAL FARM EQUIPMENT RECEIVABLES MERRILL LYNCH & CO WAS LEAD UNDERWRITER THE ISSUE IS DEERE'S SECOND PUBLIC SECURITIZATION THE FARMEQUIPMENT MAKER OFFERED A 500 MILLION ISSUE OF FLOATINGRATE SECURITIES LAST FALL 9304220036 930422 REVIEW & OUTLOOK EDITORIAL HILLARY RODHAM LAFFER WHAT DO THE PARTNERS AT GOLDMAN SACHS DISNEY CEO MICHAEL EISNER AND HILLARY RODHAM CLINTON HAVE IN COMMON ALL OF THEM ARRANGED THEIR FINANCIAL AFFAIRS IN SUCH A WAY AS TO PUSH A CHUNK OF THEIR EARNINGS OUT OF THE PATH OF HILLARY'S HUSBAND'S ONCOMING TAX HIKES AT THE ROSE LAW FIRM WHERE MRS CLINTON USED TO WORK THE PARTNERS TRADITIONALLY GET PAID AT THE END OF JANUARY MRS CLINTON GOT A BIG CHECK IN JANUARY OF LAST YEAR AND ANOTHER WHEN SHE QUIT THE FIRM ON DECEMBER 31 HAD SHE STUCK AROUND ONE DAY INTO THE NEW YEAR THE LAST CHECK WOULD HAVE BEEN TAXED AS 1993 INCOME BY BOLTING WHEN SHE DID MRS CLINTON SCRUNCHED ALMOST TWO YEARS' COMPENSATION INTO ONE YEAR RON CLARK THE FIRM'S MANAGING PARTNER TELLS US WE RAN THIS PAST RICKI SEIDMAN THE DEPUTY DIRECTOR OF WHITE HOUSE COMMUNICATIONS WHO SAYS MR CLARK EXAGGERATES MS SEIDMAN WON'T GIVE THE EXACT FIGURE BUT SAYS THE ACCELERATED PAYMENT WAS ONLY ABOUT 25 OF MRS CLINTON'S LAW EARNINGS OF 203172 IN EITHER CASE WHY BE IN A HURRY TO PAY TAXES WHEN BILL CLINTON JUMPED FROM LITTLE ROCK TO THE OVAL OFFICE HIS INCOME WENT FROM 35000 TO 200000 ENOUGH TO PUSH THE FAMILY WELL INTO THE NEW 36 BRACKET PROPOSED AS PART OF THE CLINTON ECONOMIC PROGRAM THAT MEANS THAT ANY INCOME EARNED BY HILLARY THIS YEAR WOULD BE TAXED AT 36 RATHER THAN THE CURRENT 31 TOP RATE DEPENDING ON OTHER FACTORS HER EARNINGS MIGHT EVEN SHOVE THE CLINTONS UP INTO THE PROPOSED 396 MILLIONAIRE'S BRACKET WHICH BEGINS AT 250000 OF JOINT INCOME BY THE MOST MODEST RECKONING THEN THE CLINTONS SAVED BETWEEN 2500 AND 5000 IN INCOME TAXES WHEN SHE QUIT ON NEW YEAR'S EVE INSTEAD OF NEW YEAR'S DAY WAS THIS ON THE ADVICE OF HER LITTLE ROCK TAX ACCOUNTANTS ALL I CAN TELL YOU IT DIDN'T HAPPEN FOR TAX REASONS MS SEIDMAN TELLS US MAYBE SO BUT MOST PEOPLE DON'T GO OUT OF THEIR WAY TO PAY MORE TAXES THAN THE LEGAL MINIMUM THE CLINTONS ARE ALREADY SAVING A BUNDLE BY DECLARING ARKANSAS RATHER THAN WASHINGTON THEIR LEGAL RESIDENCE AND NOW IT APPEARS THAT THE CLINTON CAMPAIGN PAID SOME OF ITS ADVANCE MEN AS INDEPENDENT CONSULTANTS EVEN THOUGH THEY WERE REALLY FULLTIME EMPLOYEES IN DOING SO THE CAMPAIGN AVOIDED PAYING SOCIAL SECURITY TAXES ON THEM OF COURSE MRS CLINTON MAY HAVE HAD AN ADVANTAGE OVER OTHER TAX PLANNERS IN THAT SHE HAD AN INKLING WHAT WAS COMING DOWN THE PIKE LISTENING TO THE CAMPAIGN GUFF YOU WOULD HAVE FIGURED THE MILLIONAIRE'S SURTAX WOULD HIT PEOPLE MAKING WELL A MILLION DOLLARS NOT THE 250000 COUPLES WHO GOT TARGETED IN FEBRUARY'S BUDGET PLAN DURING THE CAMPAIGN WE WERE ALSO TOLD THE 36 BRACKET WOULD KICK IN FOR COUPLES AT 200000 IT WASN'T UNTIL THE CLINTONITES WERE IN OFFICE THAT THE WORLD LEARNED THAT 140000 WOULD BE THE THRESHOLD UNTIL THEN MOST TAXPAYERS OUTSIDE THE CLINTON ORBIT PROBABLY STILL RECALLED THE CANDIDATE PROMISING LOWER TAXES FOR THE MIDDLE CLASS THERE'S ANOTHER LESSON HERE THAT MIGHT BE OF INTEREST TO LEON PANETTA AND HIS BUDGET OFFICE CREW THIS KIND OF LEGAL TAX AVOIDANCE IS EXACTLY WHY HIGHER TAXES NEVER RAISE AS MUCH MONEY AS THE BUDGET MEISTERS PREDICT WHEN YOU GO AROUND JACKING UP RATES PEOPLE BEGIN DIGGING THEMSELVES SHELTERS THAT MAY NOT BE THE MOST EFFICIENT USE OF THEIR MONEY BUT AT LEAST KEEP IT OUT OF REACH OF THE TAXMAN THESE ACTIVITIES DO NOTHING FOR THE ECONOMY JOBS OR ANYTHING ELSE THE CLINTON ADMINISTRATION CLAIMS TO CARE ABOUT THEY JUST MEAN THAT A LOT OF SMART PEOPLE LIKE HILLARY WASTE THEIR TIME JIGGLING THEIR FINANCES TO BEAT THE IRS WHEN THEY MIGHT BE DOING MORE PRODUCTIVE WORK 9304220035 930422 COMMODITIES OPEC CONTINUES OIL OUTPUT CUTBACKS FOR APRIL MAY BE NEAR GOAL TO PROP UP 2NDPERIOD PRICES BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL OIL PRODUCTION BY THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES IS DROPPING FURTHER THIS MONTH ACCORDING TO PRELIMINARY ESTIMATES BY INDEPENDENT MONITORS OUTPUT BY OPEC'S 12 MEMBER NATIONS NOW IS AVERAGING AROUND 24 MILLION BARRELS A DAY IT'S DOWN BUT BALANCED ON A KNIFE'S EDGE IF THEIR OBJECTIVE IS TO GET BELOW 24 MILLION BARRELS A DAY FOR APRIL SAID CONRAD GERBER PRESIDENT OF PETROLOGISTICS LTD GENEVA A FIRM WHICH USES TANKER TRACKING AND OTHER MEASURES TO MONITOR OPEC PRODUCTION MR GERBER'S FIGURES SHOW A RELATIVELY MODEST DECLINE IN OUTPUT SO FAR THIS MONTH COMPARED WITH THE SHARP FALL OF MORE THAN ONE MILLION BARRELS A DAY IN MARCH FROM FEBRUARY'S 254 MILLION BARRELS A DAY GOING INTO MAY AS A RESULT OPEC'S PRODUCTION MAY REMAIN ABOVE THE SECONDQUARTER CEILING OF 236 MILLION BARRELS A DAY STILL ACCORDING TO SOME ANALYSTS EVIDENCE IS MOUNTING THAT THE CUMULATIVE TOTAL OF OPEC'S PRODUCTION CUTBACKS NOW MAY BE ENOUGH TO PROP UP OIL PRICES FOR THE REMAINDER OF THE SLACK DEMAND PERIOD OF THE SECOND QUARTER THAT WAS THE INTENT OF THE OIL EXPORTERS IN FEBRUARY WHEN THEY SET THE CURRENT PRODUCTION CEILING WHICH LASTS UNTIL JULY ALTHOUGH IT IS TOO EARLY TO TELL THEY MAY HAVE PULLED IT OFF SAID SARAH EMERSON A MARKET ANALYST WITH ENERGY SECURITY ANALYSIS WASHINGTON A FIRM WHICH TRACKS OIL SUPPLIES WORLDWIDE ALTHOUGH SHE ESTIMATED OPEC PRODUCTION AT 242 MILLION BARRELS A DAY NOW SHE SAID THERE IS FUNDAMENTAL SUPPORT FOR PRICES AROUND CURRENT LEVELS IN A TRADING RANGE OF 20 TO 2075 A BARREL FOR WEST TEXAS INTERMEDIATE A BENCHMARK CRUDE CRUDE OIL PRICES GENERALLY WERE HIGHER YESTERDAY ALTHOUGH THE GAINS IN FUTURES TRADING WERE DUE MORE TO BULLISH REPORTS OF DRAWDOWNS IN US CRUDE INVENTORIES THAN TO OPEC'S PRODUCTION LEVELS CRUDE OIL FOR JUNE DELIVERY ROSE FIVE CENTS TO SETTLE AT 2037 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE IN LONDON THE JUNE CONTRACT FOR THE BRENT BLEND CRUDE WAS UP EIGHT CENTS TO 1888 A BARREL NATURAL GAS FUTURES PRICES SURGED MEANWHILE IN FRANTIC BUT LARGELY TECHNICALLYDRIVEN US FUTURES TRADING AFTER BREAKING THROUGH WHAT TRADERS CALLED A CRITICAL RESISTANCE LEVEL THE FUTURES PRICE OF NATURAL GAS FOR MAY DELIVERY JUMPED 191 CENTS TO SETTLE AT 2633 PER MILLION BRITISH THERMAL UNITS OR APPROXIMATELY 1000 CUBIC FEET THE JUNE GAS CONTRACT WAS UP 10 CENTS THE MAXIMUM ALLOWED TO 2459 A MILLION BTUS THE MAY GAS CONTRACT EXPIRES TOMORROW AND VOLATILITY WAS EXPECTED BECAUSE OF BID WEEK WHEN CONTRACT TERMS ARE DETERMINED IN THE SPOT MARKET FOR THE NEXT 30 DAYS IN LONDON AS WELL AS IN NEW YORK ACCORDING TO THE DOW JONES INTERNATIONAL PETROLEUM REPORT CRUDE OIL TRADERS ATTRIBUTED THE FIRMER TONE OF THE OIL MARKET ALMOST ENTIRELY TO THE LATEST WEEKLY REPORT OF THE AMERICAN PETROLEUM INSTITUTE THE REPORT RELEASED LATE TUESDAY AFTER FUTURES TRADING HAD CLOSED SHOWED A SURPRISING FALL OF 101 MILLION BARRELS IN US INVENTORIES OF CRUDE OIL LAST WEEK SKEPTICISM IS GROWING AMONG OILMARKET PARTICIPANTS HOWEVER OVER THE RELIABILITY OF THE INDUSTRY'S WEEKLY INVENTORY DATA BECAUSE OF THE WIDE SWINGS IN RECENT REPORTS THE PREVIOUS API REPORT HAD SHOWED AN INCREASE OF 124 MILLION BARRELS IN CRUDE INVENTORIES AS A RESULT THE FOCUS OF THE OIL MARKET IS INCREASINGLY TURNING TO OPEC'S PRODUCTION THE PERCEPTION IS WIDESPREAD THAT THERE IS TOO MUCH OIL ON THE MARKET PARTLY BECAUSE OF OPEC'S DECADEHIGH PRODUCTION EARLIER THIS YEAR THERE ALSO IS DEBATE OVER THE OUTLOOK FOR WORLD DEMAND OVER THE NEXT FEW MONTHS STILL OIL ECONOMISTS GENERALLY EXPECT THE CALL ON OPEC OIL FOR THE SECOND QUARTER TO BE SOME 24 MILLION BARRELS A DAY THUS ITS OUTPUT MAY NOT HAVE TO DROP ALL THE WAY TO THE CEILING OF 236 MILLION BARRELS A DAY TO PROVIDE FURTHER SUPPORT FOR OIL PRICES ACCORDING TO MR GERBER OF PETROLOGISTICS OPEC'S PRODUCTION FELL BELOW 24 MILLION BARRELS A DAY IN THE THIRD WEEK OF APRIL AFTER RUNNING ABOVE THAT LEVEL IN THE FIRST TWO WEEKS OF THE MONTH IF PRODUCTION SLIDES FURTHER IN THE FOURTH WEEK OF APRIL AS MR GERBER EXPECTS OUTPUT FOR THE MONTH LIKELY WOULD AVERAGE 239 MILLION BARRELS A DAY IT'S GOING THE RIGHT WAY HE SAID IN OTHER COMMODITY MARKETS YESTERDAY LUMBER LUMBER FUTURES PRICES DECLINED THE DAILY LIMIT AS TRADERS CONTINUED TO PULL PRICES BACK IN LINE WITH REALITY A MAJOR RUNUP IN LUMBER PRICES DURING THE FIRST QUARTER PUSHED THE MAY CONTRACT TO A HISTORICAL HIGH OF 45820 PER THOUSAND BOARD FEET ON MARCH 15 SINCE THEN IT HAS GRADUALLY TRICKLED LOWER MAINLY BECAUSE SUPPLY HAS CAUGHT UP WITH DEMAND FOR WOOD AT THE CHICAGO MERCANTILE EXCHANGE THE MAY CONTRACT WAS DOWN 10 TO 35020 PER THOUSAND BOARD FEET GRAINS & SOYBEANS PROSPECTS OF IMPROVING WEATHER PUSHED GRAIN FUTURES PRICES DOWN AT THE CHICAGO BOARD OF TRADE THE NATIONAL WEATHER SERVICE'S 6TO10DAY FORECAST PREDICTED NORMAL PRECIPITATION AND BELOWNORMAL TEMPERATURES ACROSS MUCH OF THE MIDWEST WHILE THOSE CONDITIONS AREN'T EXACTLY IDEAL FOR PLANTING CORN AND OTHER GRAINS THEY ARE AN IMPROVEMENT OVER THE RECENT EXCESSIVELY WET WEATHER THAT HAS SATURATED FIELDS THROUGHOUT THE NATION'S HEARTLAND ANALYSTS CAUTIONED HOWEVER THAT FIELDS REMAIN WET AND THAT SEVERAL DAYS' DRYING TIME IS REQUIRED BEFORE FIELDS CAN SUPPORT HEAVY MACHINERY FOR PLANTING ADDITIONAL RAIN DURING THAT TIME COULD CONTINUE TO SET BACK PLANTING AT THE CBOT CORN FOR JULY DELIVERY FELL 375 CENTS TO 23375 A BUSHEL AND JULY SOYBEANS WERE DOWN 15 CENTS TO 59175 A BUSHEL 9304220034 930422 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN GERMANY'S RECESSION IS DEEPENING MORE THAN EXPECTED AND ADDING RED INK TO ALREADY PRECARIOUS GOVERNMENT FINANCES THE FINANCE MINISTRY SAID A SUPPLEMENTARY BUDGET MUST PROVIDE FOR A DEFICIT EXCEEDING 65 BILLION MARKS 4078 BILLION WIDENED FROM AN INITIALLY PLANNED 43 BILLION MARKS THAT WAS SUBSEQUENTLY INCREASED TO 54 BILLION MARKS GOVERNMENT NET BORROWING IN THE FIRST QUARTER SOARED FIVEFOLD TO 25 BILLION MARKS FROM A YEAR EARLIER TOPPING THE 203 BILLION MARKS FOR ALL OF 1992 BECAUSE OF HEAVY UNEMPLOYMENT OUTLAYS EASTERN GERMAN AID PROGRAMS AND RECESSIONLOWERED TAX RECEIPTS AND THE BROADBASED M3 MONEY SUPPLY WHICH CONTRACTED AT A SEASONALLY ADJUSTED ANNUAL RATE OF 03 IN FEBRUARY ROSE 32 THROUGH MARCH CLOSER TO THE TARGET RANGE OF 45 TO 65 THE COMBINATION OF THE RISING MONEY SUPPLY AND DEEPENING FEDERAL DEFICIT COULD REKINDLE THE CENTRAL BANK'S INFLATION CONCERNS AND DELAY FURTHER CUTS IN INTEREST RATES GERMAN INDUSTRY IS SKEPTICAL ABOUT BONN'S PREDICTION THAT THE RECESSION MAY BE TAMED LATER THIS YEAR OR IN EARLY 1994 THE EUROPEAN COMMUNITY COMMISSION IS EXPECTED TODAY TO END ITS BAN ON MEAT IMPORTS FROM SOME EASTERN EUROPEAN COUNTRIES PROVIDED THAT THEY OBSERVE STRICT CONTROLS THE BAN WAS IMPOSED EARLIER THIS MONTH BECAUSE OF FEARS OF FOOTANDMOUTH DISEASE SOME OF THE EASTERN COUNTRIES ACCUSED THE EC OF PROTECTIONISM AND RETALIATED BY REFUSING MEAT SHIPMENTS FROM EC NATIONS THE BAN MAY BE LIFTED FROM POLAND HUNGARY THE CZECH REPUBLIC AND SLOVAKIA BUT LEFT IN PLACE FOR OTHER COUNTRIES UNTIL THE EC COMPLETES INSPECTIONS CHINA WANTS AT LEAST 10 BILLION OF FOREIGN INVESTMENT FOR AN EIGHTYEAR 175 BILLION DEVELOPMENT PROJECT ALONG THE YANGTZE RIVER FROM THE PORT CITY OF SANGHAI TO CHONGQING IN SICHUAN PROVINCE THE PLAN INCLUDES 100 BIG PROJECTS INCLUDING A SHANGHAI OIL REFINERY A NEW REACTOR AT THE QINSHAN NUCLEAR POWER PLANT IN ZHEJIANG PROVINCE AN EXPRESS RAILWAY BETWEEN BEIJING AND SHANGHAI AND AN INTERNATIONAL AIRPORT FOR THE PUDONG DEVELOPMENT ZONE IN SHANGHAI THE RIVER VALLEY GENERATES 20 OF CHINA'S GROSS NATIONAL PRODUCT MERGERS AND ACQUISITIONS INVOLVING JAPANESE COMPANIES PLUNGED 23 TO 116 IN THIS YEAR'S FIRST THREE MONTHS FROM 150 A YEAR EARLIER THESE DEALS HAVE SLOWED AS BANKS REDUCED THEIR FINANCING RISKS AMID A SPUTTERING JAPANESE ECONOMY LAST YEAR M&A DEALS TOTALED 494 DAIWA SECURITIES CO SAID IN THE LATEST QUARTER FOREIGN FIRMS' ACQUISITIONS OF JAPANESE COMPANIES THOUGH A SMALL PART OF THE TOTAL HELD STEADY AT 7 TRANSACTIONS INVOLVING ONLY JAPANESE FIRMS FELL 4 TO 72 JAPANESE ACQUISITIONS OF FIRMS ABROAD SLID 46 TO 37 URUGUAY'S GROSS NATIONAL PRODUCT LAST YEAR GREW 74 THE SHARPEST INCREASE SINCE THE 79 EXPANSION RECORDED IN 1987 GNP ROSE 29 IN 1991 09 IN 1990 AND 13 IN 1989 THE ECONOMY LAST YEAR EXPANDED IN ALL SECTORS EXCEPT FISHING WHICH DECLINED 19 THE UTILITY SECTOR INCLUDING ELECTRICITY NATURAL GAS AND WATER REGISTERED THE MOST GROWTH 20 CHINA'S SECURITIES AND REGULATORY COMMISSION FORMED LAST OCTOBER TO STRENGTHEN MANAGEMENT OF FLEDGLING STOCK MARKETS DRAFTED REGULATIONS ON ISSUING AND BUYING NEW SHARES THE RULES ARE INTENDED TO CURB A BLACK MARKET FOR APPLICATION FORMS AND ELIMINATE LONG LINES OF APPLICANTS UNTIL NOW LIMITED NUMBERS OF FORMS WERE SOLD AND BUYERS WERE SELECTED BY LOTTERY A SYSTEM THAT RESULTED IN RIOTS LAST AUGUST IN SHENZHEN DURING A STOCKBUYING FRENZY UNDER THE NEW RULES CHINA MAY SELL AT COST AN UNLIMITED NUMBER OF NONTRANSFERABLE FORMS AND EXTEND THE OFFERING PERIOD TO AT LEAST A WEEK THE JAPANESE YEN'S RECENT SURGE AGAINST THE US DOLLAR IS PROMPTING JAPANESE COMPANIES TO EXPAND MANUFACTURING OPERATIONS OVERSEAS WHERE THE YEN'S HIGHER VALUE REDUCES PRODUCTION COSTS JAPANESE COMPANIES ALSO ARE RAISING THEIR DOLLARBASED EXPORT PRICES SELLING DOLLARS AND BUYING YEN IN CURRENCY FUTURES TRANSACTIONS TO CUT FOREIGNEXCHANGE LOSSES AND REVIEWING GLOBAL STRATEGIES BRIDGESTONE CORP SAID A RATE OF 110 YEN TO THE DOLLAR EQUALIZES ITS PRODUCTION COSTS IN JAPAN AND THE US AND A STRONGER YEN WOULD GIVE THE COMPANY'S US VENTURE THE ADVANTAGE THE TIRE MAKER PLANS TO EXPAND IN THE US AND EUROPE TOYOTA MOTOR CORP SAID IT HADN'T ANY CHOICE BUT TO BOOST OUTPUT IN THE US EUROPE AND ASIA AND EXPAND IMPORTS TO JAPAN SONY CORP INTENDS TO EXPAND ITS OVERSEAS OPERATIONS AND JAPANESE SHIPBUILDERS PLAN TO BUY MORE MACHINERY PARTS ABROAD CANON INC'S US JOINTVENTURE FIRM UNITED SOLAR SYSTEMS CORP WILL BUILD A 30 MILLION SOLARBATTERY PLANT IN NEWPORT NEWS VA TO OPEN AT THE END OF 1994 CHINA WILL CRACK DOWN ON ILLEGAL DUPLICATIONS OF FOREIGN MUSIC RECORDINGS AND PIRATED IMPORTS STARTING APRIL 30 WHEN THE COUNTRY JOINS A GLOBAL CONVENTION AIMED AT ENFORCING COPYRIGHT PROTECTION DECLARING ITS SUBWAY A CULTURAL AND ARCHITECTURAL MONUMENT MOSCOW ISSUED RULES BANNING DRUNKEN AND BAREFOOT PEOPLE ALSO ILLEGAL RIDING MOTORCYCLES BICYCLES AND SCOOTERS AND ROLLER SKATING IN THE ORNATE STATIONS AND PLAYING MUSICAL INSTRUMENTS RADIOS AND TAPE MACHINES 9304220033 930422 BUSINESS BRIEF SIERRA ONLINE INC AT&T AND GENERAL ATLANTIC TO INVEST IN NETWORK UNIT SIERRA ONLINE INC SAID IT SIGNED A LETTER OF INTENT UNDER WHICH AMERICAN TELEPHONE & TELEGRAPH CO AND GENERAL ATLANTIC PARTNERS A NEW YORK INVESTMENT FIRM WOULD TAKE EQUITY POSITIONS IN SIERRA'S ENTERTAINMENT NETWORK UNIT TERMS WEREN'T DISCLOSED AS PART OF THE AGREEMENT AT&T ALSO WOULD PROVIDE DEVELOPMENT SUPPORT AND CAPITAL TO PRODUCE FUTURE OFFERINGS FOR THE NETWORK THE UNIT WHICH SIERRA BEGAN IN 1991 ALLOWS PEOPLE TO COMPETE IN INTERACTIVE MULTIPLAYER GAMES VIA TELEPHONE LINES AND PERSONAL COMPUTERS BUT COSTS ASSOCIATED WITH THE SYSTEM HAVE BEEN A BURDEN ON SIERRA AN OAKHURST CALIF MAKER OF COMPUTER GAMES LAST MONTH THE COMPANY SAID IT WOULD LAY OFF 60 OF ITS 500 WORKERS TAKE A 900000 ONETIME CHARGE AND POST A WIDERTHANEXPECTED LOSS IN ITS FISCAL FOURTH QUARTER ENDED MARCH 31 SIERRA SAID THE ALLIANCE WITH AT&T WOULD STRENGTHEN OUR COMPETITIVE POSITION IN THE INTERACTIVE MULTIMEDIA MARKET AND HASTEN DEVELOPMENT OF NETWORK APPLICATIONS 9304220032 930420 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY APRIL 7 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9304220030 930422 MOVIES STUDIOS FEAR A GLUT OF SUMMER MOVIES WILL CROWD OUT FILMS LACKING BIG STARS BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD CLINT EASTWOOD ARNOLD SCHWARZENEGGER TOM CRUISE SYLVESTER STALLONE EVEN SNOW WHITE WILL SHOW UP ON THE NATION'S MOVIE SCREENS THIS SUMMER BUT THEY MAY NOT STAY LONG HOLLYWOOD STUDIOS HAVE INCREASED PRODUCTION AND ARE PREPARING TO RELEASE A WHOPPING 60 FILMS THIS SUMMER 33 MORE THAN LAST YEAR ACCORDING TO CALCULATIONS BY VARIETY THEATERS WILL THUS BE CROWDED WITH MOVIES AND THOSE FILMS THAT DON'T SELL BUNDLES OF TICKETS RIGHT FROM THE START WILL LIKELY FIND THEMSELVES BEING CONVERTED EARLY TO HOME VIDEO THE PRODUCT GLUT IS GIVING THE WILLIES TO HOLLYWOOD MOGULS WHO WORRY THAT THEIR FILMS MAY NOT GET ENOUGH PLAY TO RECOUP THEIR COSTS WITH PRODUCTION EXPENSES UP AND ANCILLARY REVENUE STREAMS SUCH AS HOME VIDEO PEAKING PROFITS ARE HARDER TO COME BY THAN EVER BEFORE AND THE NEXT POSSIBLE BONANZA PRODUCTHUNGRY 500CHANNEL CABLE TELEVISION SYSTEMS ISN'T EXPECTED TO BE A REAL FORCE FOR YEARS STUDIOS ARE ENTERING THE SUMMER SEASON WHICH ACCOUNTS FOR 40 OF ALL BOXOFFICE RECEIPTS IN LESS THAN GREAT SHAPE LISBETH BARRON AN ANALYST AT SG WARBURG & CO ESTIMATES THAT IN THIS YEAR'S FIRST QUARTER ONLY WALT DISNEY CO AND TIME WARNER INC'S MOVIE OPERATIONS HAD PROFITABLE RELEASES OVERALL THE CULPRITS HIGH COSTS AND SMALL AUDIENCES FOR SOCALLED SECONDTIER FILMS WITH MEDIUMSIZED BUDGETS MS BARRON SAYS BUT THE FINANCIAL PRESSURES AREN'T KEEPING MOVIE COMPANIES FROM PLAYING THE HIGHSTAKES SUMMERMOVIE GAME WITH THEIR USUAL GUSTO STUDIOS ARE WHEELING OUT EXPENSIVE PICTURES WITH THE INDUSTRY'S BIGGEST STARS INCLUDING MR CRUISE PARAMOUNT PICTURES' THE FIRM MR EASTWOOD COLUMBIA PICTURES' IN THE LINE OF FIRE AND SEAN CONNERY FOX'S RISING SUN THEY HAVE HIRED THE BIGGEST DIRECTORS STEVEN SPIELBERG FOR UNIVERSAL'S DINOSAUR THRILLER JURASSIC PARK AND CREATED WHAT THEY PROMISE WILL BE OUTOFTHISWORLD SPECIAL EFFECTS COLUMBIA'S LAST ACTION HERO WHICH FEATURES MR SCHWARZENEGGER THE MOST ATTENTION IN TOWN TO DATE HAS BEEN FOCUSED ON THE JUNE RELEASES JURASSIC PARK AND LAST ACTION HERO LARGELY BECAUSE OF THEIR HUGE PRODUCTION BUDGETS AND HIGHTECH WIZARDRY THE JULY AND AUGUST RELEASE SCHEDULES ARE BURSTING IN LARGE PART BECAUSE RIVAL STUDIOS ARE SKITTISH ABOUT OPENING ON EITHER OF THOSE PICTURES' PREMIERE DAYS NOTHING IS SCHEDULED TO COMPETE DIRECTLY WITH JURASSIC PARK ON JUNE 11 ONLY THE ANIMATED ONCE UPON A FOREST FROM NEWS CORP'S FOX WILL SHARE THE JUNE 18 OPENING DATE WITH LAST ACTION HERO FROM SONY CORP'S COLUMBIA UNIVERSAL IS A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA COLUMBIA CHAIRMAN MARK CANTON LAST YEAR SAID THAT LAST ACTION HERO WOULD COST IN THE BIGBUDGET 40 MILLION RANGE IT HASN'T TURNED OUT THAT WAY EVEN MR CANTON CONCEDES AND ANALYSTS SAY THE FILM WILL COST 80 MILLION TO 85 MILLION WHEN PRINTS AND ADVERTISING EXPENSES ARE INCLUDED JURASSIC PARK IS IN THE SAME BALLPARK ANALYSTS ADD THE ADDED EXPENSES FOR MR SCHWARZENEGGER'S FILM WERE FOR SURPRISES AND SPECIAL EFFECTS THAT HAVE NEVER BEEN SEEN BEFORE MR CANTON SAYS BETWEEN INTERNATIONAL AND DOMESTIC WE'RE GOING TO MAKE PLENTY OF MONEY MR CANTON PROMISES DECLINING TO ESTIMATE HOW MUCH THE MOVIE MUST GROSS HERE AT HOME TO BREAK EVEN AS FOR COLUMBIA'S OTHER MOVIES HE BRAGS THAT TEST SCORES FOR A RECENT SCREENING OF IN THE LINE OF FIRE WERE THROUGH THE ROOF IN IT MR EASTWOOD PLAYS A SECRET SERVICE MAN ON THE PRESIDENTIAL DETAIL I THINK THE MOVIE IS GOING TO BE A SMASH AND CLINT IS BETTER THAN EVER IF THAT'S POSSIBLE ADDS THE EVER ENTHUSIASTIC MR CANTON AMONG THE OTHER RISKY BIGBUDGET MOVIES HEADED FOR THEATERS SONY'S TRISTAR PICTURES UNIT WILL DISTRIBUTE CAROLCO PICTURES INC'S CLIFFHANGER AN ACTION MOVIE STARRING SYLVESTER STALLONE AN ACTOR WHO HASN'T BEEN IN A HIT IN YEARS RENNY HARLIN THE FILM'S DIRECTOR SAID RECENTLY THAT THE MOVIE SEEKS TO REINVENT THE HUMBLER SOFTER MORE VULNERABLE STALLONE THERE ARE ALSO HIGH HOPES FOR WARNER BROS' THE FUGITIVE WHICH STARS HARRISON FORD IN A FEATURE BASED ON THE 1960S DAVID JANSSEN TV SERIES AND SLIVER A THRILLER STARRING SHARON STONE FROM PARAMOUNT A UNIT OF PARAMOUNT COMMUNICATIONS INC ALL THE STUDIOS CONTINUE TO INSIST THEY ARE MAKING STRIDES IN LOWERING PRODUCTION COSTS WHEN PROBABLY ONLY DISNEY IS SETTING UP A STRUCTURE TO DO THAT SAYS MS BARRON OF WARBURG ANALYSTS SAY THEY WOULDN'T BE SURPRISED IF DISNEY WINS THE SUMMER MARKETSHARE BATTLE IN LARGE PART BECAUSE WITH 10 FILMS IT HAS THE MOST AGGRESSIVE SCHEDULE MS BARRON NOTES THAT AT THE SAME TIME THERE IS GREAT RISK FOR THE SECONDTIER MODESTLY BUDGETED PICTURES WHERE IT'S TOUGH TO FIND AN EXACT AUDIENCE THEY'RE NOT NICHE LOWBUDGET MIRAMAXTYPE FILMS NOR ARE THEY HIGHVISIBILITY ACTION FILMS DRIVEN BY TALENT SHE SAYS THERE ARE MANY MOVIES IN EACH OF THE SUMMER MONTHS THAT HAVE STRONG QUESTION MARKS IN TERMS OF THEM MAKING ENOUGH MONEY AT THE BOX OFFICE AND HAVING ENOUGH INTEREST IN VIDEO TO DO ANYTHING MORE THAN BREAK EVEN SHE CITES COLUMBIA'S CALENDAR GIRL PARAMOUNT'S THE THING CALLED LOVE AND FOX'S ROOKIE OF THE YEAR NOT ALL THESE MOVIES ARE GOING TO MAKE IT SAYS MICHAEL PATRICK CHIEF EXECUTIVE OF CARMIKE CINEMAS INC BUT IF THEY OPEN' WELL WE'LL FIND A PLACE FOR THEM HE WARNS THOUGH THAT MANY OF HIS THEATERS SIMPLY WON'T HAVE THE ROOM IN JULY AND AUGUST TO SHOW HIT FILMS ON MULTIPLE SCREENS AS THEY HAVE IN THE PAST HOW WELL A MOVIE DOES IN THEATERS IS A CRITICAL ELEMENT OF A FILM'S OVERALL REVENUE POTENTIAL CONTRIBUTING ON AVERAGE 30 TO 35 OF A MOVIE'S OVERALL REVENUE STUDIOS TYPICALLY GET ABOUT 50 OF A MOVIE'S BOXOFFICE GROSS SPLITTING THE PROCEEDS WITH THEATERS A FILM DERIVES ABOUT 40 TO 45 OF ITS REVENUE FROM VIDEO SALES AND RENTALS WITH THE REMAINDER COMING FROM TELEVISION SALES INCLUDING SYNDICATION NETWORK AND PAYTV SERVICES STUDIOS ARE NOW BUSY JOCKEYING TO SECURE THE SCREENS THEY'LL NEED DISNEY IS TARGETING MORE THAN 400 TOWNS WITH A TOTAL OF SIX THEATER SCREENS OR LESS WITH A PROMOTION TO ENCOURAGE SMALL THEATERS TO RUN ITS FILMS THE GOOD MOVIES WILL SURVIVE AND THE CREAM WILL RISE TO THE TOP SAYS DICK COOK DISNEY'S PRESIDENT OF DISTRIBUTION YOU JUST HOPE YOU HAVE ENOUGH OF THE CREAM THE MOST EXPENSIVE DISNEY MOVIE IS THE 30 MILLION HOCUS POCUS A COMEDY STARRING BETTE MIDLER SARAH JESSICA PARKER AND KATHY NAJIMY AS 17TH CENTURY WITCHES WHO ARE ACCIDENTALLY CONJURED UP ON HALLOWEEN NIGHT IN PRESENTDAY SALEM MASS DISNEY IS DISTRIBUTING BUT DIDN'T FINANCE ITS FIRST SUMMER RELEASE THE 42 MILLION SUPER MARIO BROS BASED ON CHARACTERS FROM THE POPULAR NINTENDO GAMES IT ALSO HAS HIGH HOPES FOR ITS RERELEASE OF SNOW WHITE AND THE SEVEN DWARFS THE ONLY ONE OF ITS ANIMATED CLASSICS THAT ISN'T AVAILABLE ON HOME VIDEO IT WILL OPEN JULY 2 BUT SOME SAY OTHER FILM COMPANIES INCLUDING METROGOLDWYNMAYER INC MAY HAVE TROUBLE FINDING OUTLETS THE TROUBLED STUDIO HAS BEEN TRYING TO TURN ITSELF AROUND FOR SOME TIME NOW BUT COCHAIRMAN ALAN LADD JR REMAINS OPTIMISTIC ABOUT SECURING SCREENS FOR ITS THREE FILMS WE'VE HAD EXCELLENT PREVIEWS SO FAR HE SAYS AND THE PICTURES WILL SPEAK FOR THEMSELVES EXHIBITORS ARE DEBATING WHICH FILMS WILL BREAK OUT AND BECOME THE SEASON'S SLEEPERS MUCH THE WAY DISNEY'S SISTER ACT DID LAST YEAR SOME ARE BETTING ON WARNER'S MADE IN AMERICA A COMEDY ABOUT A SPERM BANK MIXUP STARRING WHOOPI GOLDBERG AND TED DANSON ANOTHER POSSIBLE HIT IS WARNER'S FREE WILLY ABOUT A BOY WHO FREES A FRIENDLY WHALE FROM A DILAPIDATED AQUARIUM ONE MOVIE THAT KEEPS COMING UP IS TRISTAR'S SLEEPLESS IN SEATTLE A MOVIE IN WHICH TOM HANKS PLAYS A WIDOWER WHOSE SON KNOCKS HIMSELF OUT TO INTRODUCE HIS DAD TO A STRANGER PLAYED BY MEG RYAN THAT STRIKES ME AS ONE THAT COULD BE A BIG HIT SAYS MARC MERRY DIRECTOR OF CORPORATE MARKETING AT AMC INC'S THEATER OPERATIONS IT SEEMS TO HAVE THE SAME FEEL AS WHEN HARRY MET SALLY' THE 1989 HIT THAT ALSO STARRED MS RYAN MOVIE STUDIOS WILL RELEASE ANOUT 60 MOVIES THIS SUMMER UP 33 FROM LAST YEAR HERE'S A SAMPLING COSTS FOR PRINTS AND ADVERTISING 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 9304220029 930422 BUSINESS BRIEF COLGATEPALMOLIVE POSTS 1STPERIOD LOSS OF 2032 MILLION NEW YORK COLGATEPALMOLIVE CO REPORTED A NET LOSS IN ITS FIRST QUARTER AFTER THE ADOPTION OF NEW ACCOUNTING STANDARDS BUT POSTED DOUBLEDIGIT PERCENTAGE GAINS IN OPERATING PROFIT THANKS LARGELY TO STRENGTH IN SOME FOREIGN MARKETS COLGATE'S FIRSTQUARTER NET LOSS TOTALED 2032 MILLION OR 130 A SHARE COMPARED WITH 1138 MILLION OR 74 CENTS A SHARE THE YEAR BEFORE EXCLUDING THE EFFECT OF A 344 MILLION NONCASH CHARGE FOR CHANGES IN ACCOUNTING FOR POSTRETIREMENT BENEFITS FIRSTQUARTER OPERATING PROFIT ROSE 24 TO 1408 MILLION OR 85 CENTS A SHARE SALES INCREASED 6 TO 17 BILLION FROM 16 BILLION A YEAR EARLIER COLGATE'S CHIEF EXECUTIVE OFFICER REUBEN MARK SAID THE COMPANY'S INCOME BEFORE INTEREST AND TAXES ROSE 20 AS COLGATE CONTINUED TO MOVE ITS BUSINESS TOWARDS HIGHERMARGIN ORAL AND PERSONAL CARE PRODUCT CATEGORIES AND INCREASE MANUFACTURING EFFICIENCIES AS A RESULT GROSS MARGINS INCREASED TO 479 FROM 472 A YEAR EARLIER HE SAID ANALYSTS REMAINED RELATIVELY POSITIVE ABOUT COLGATE'S OUTLOOK CITING THE COMPANY'S STRONG OVERSEAS BUSINESS THE US DEMONSTRATED EXTREME WEAKNESS BUT COLGATE'S GEOGRAPHIC DIVERSIFICATION SAVED THE DAY SAID ANDREW SHORE ANALYST AT PAINEWEBBER INC COLGATE REPORTED STRONG PERFORMANCES FROM LATIN AMERICA AND ASIA SALES IN LATIN AMERICA WERE UP 19 LED BY MEXICO VENEZUELA AND COLOMBIA AND SALES IN THE ASIA/AFRICA REGION INCREASED 12 SALES IN THE EUROPEAN UNIT FELL 6 BECAUSE OF THE STRONG DOLLAR WHILE UNIT VOLUME INCREASED 1 THE CONSUMERPRODUCTS COMPANY DIDN'T FARE SO WELL IN THE US THE US /CANADA DIVISION REPORTED A 7 SALES INCREASE BUT THAT REFLECTED COLGATE'S RECENTLY ACQUIRED MENNEN PERSONAL CARE BUSINESS EXCLUDING MENNEN SALES WOULD HAVE FALLEN 10 COLGATE SAID IT HAS GENERALLY MAINTAINED ITS DOMESTIC MARKET SHARES AND ATTRIBUTED THE SALES DROP TO A TOUGH COMPARISON WITH LAST YEAR WHEN VOLUME WAS UP 12 ON NEW PRODUCT INTRODUCTIONS COLGATE STOCK WAS QUOTED AT 59 UP 125 CENTS IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY 9304220028 930422 TECHNOLOGY SUPERMAC OUTRUNS RASTEROPS AND RADIUS IN MOST RECENT PERIOD SUNNYVALE CALIF SUPERMAC TECHNOLOGY INC SAID STRONG SHIPMENTS ACROSS ITS PRODUCT LINE CAUSED EARNINGS TO INCREASE 75 IN THE FIRST QUARTER HOWEVER TWO OTHER MAKERS OF GRAPHICS SYSTEMS FOR PERSONAL COMPUTERS RASTEROPS CORP AND RADIUS INC HAD LOSSES SUPERMAC WHICH MAKES PRODUCTS THAT ENHANCE THE COLOR AND GRAPHICS CAPABILITIES OF PERSONAL COMPUTERS POSTED FIRSTQUARTER EARNINGS OF 21 MILLION OR 25 CENTS A SHARE COMPARED WITH 12 MILLION OR 18 CENTS A SHARE FOR THE YEAREARLIER PERIOD FOR THE QUARTER THE COMPANY HAD 84 MILLION SHARES OUTSTANDING COMPARED WITH 65 MILLION A YEAR AGO THE COMPANY SAID FIRSTQUARTER SALES ROSE 74 TO 437 MILLION FROM 252 MILLION A YEAR EARLIER SUPERMAC'S GAINS CAME AT THE EXPENSE OF TWO COMPETITORS RASTEROPS SANTA CLARA CALIF POSTED A NET LOSS OF 6 MILLION OR 74 CENTS A SHARE FOR ITS FISCAL THIRD QUARTER ENDED MARCH 31 FOR THE YEAREARLIER PERIOD IT HAD NET INCOME OF 18 MILLION OR 22 CENTS A SHARE SALES FOR THE QUARTER FELL 23 FROM 327 MILLION TO 251 MILLION RADIUS SAN JOSE CALIF HAD A NET LOSS OF 53 MILLION OR 39 CENTS A SHARE FOR ITS FISCAL SECOND QUARTER ENDED MARCH 31 A YEAR EARLIER IT HAD NET INCOME OF 23 MILLION OR 16 CENTS A SHARE SALES FELL TO 309 MILLION FROM 429 MILLION AND THE COMPANY SAID IT DOESN'T EXPECT TO RETURN TO PROFITABLITY IN THE NEAR TERM THE THREE COMPANIES ALL PRODUCE COMMODITYLIKE PRODUCTS SAID BRUCE LUPATKIN ANALYST WITH HAMBRECHT & QUIST BUT DURING THE LAST SEVERAL QUARTERS HE SAIDSUPERMAC HAS DONE A BETTER JOB OF GETTING PRODUCTS INTO THE MARKETPLACE AT AGGRESSIVE PRICE POINTS SUPERMAC'S STOCK PRICE HAS MORE THAN DOUBLED IN THE PAST YEAR CLOSING YESTERDAY UNCHANGED AT 1775 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING MEANWHILE STOCK PRICES FOR BOTH RASTEROPS AND RADIUS HAVE FALLEN SOME 75 IN THE PAST YEAR RASTEROPS CLOSED YESTERDAY AT 5375 A SHARE DOWN 375 CENTS AND RADIUS CLOSED AT 3625 DOWN 4375 CENTS 9304220027 930422 NEDLLOYD POSTS A LOSS FOR YEAR ROTTERDAM NETHERLANDS DUTCH SHIPPING AND ROAD TRANSPORT COMPANY NEDLLOYD GROEP SAID IT SWUNG TO A NET LOSS OF 583 MILLION GUILDERS 325 MILLION FROM A YEAREARLIER PROFIT OF 145 MILLION GUILDERS SALES DROPPED 37 TO 672 BILLION GUILDERS FROM 698 BILLION GUILDERS NEDLLOYD SAID IT WON'T PAY A DIVIDEND FOR 1992 THE THIRD CONSECUTIVE YEAR THAT A DIVIDEND WAS OMITTED THE COMPANY ATTRIBUTED THE NEGATIVE EARNINGS TO THE ECONOMIC DECLINE IN KEY MARKETS OVERCAPACITY IN OCEAN SHIPPING IN PARTICULAR PUT PRESSURE ON PRICES 9304220026 930422 BUSINESS BRIEF PHELPS DODGE CORP COPPER PRODUCER SWINGS TO PROFIT FOR FIRST QUARTER PHELPS DODGE CORP REPORTED NET INCOME OF 603 MILLION OR 85 CENTS A SHARE FOR THE FIRST QUARTER COMPARED WITH A NET LOSS OF 279 MILLION OR 40 CENTS A SHARE AFTER ACCOUNTING CHANGES IN THE YEARAGO QUARTER THE YEARAGO LOSS REFLECTED A CHARGE OF 799 MILLION OR 114 A SHARE FOR ACCOUNTING CHANGES BEFORE ACCOUNTING CHANGES THE PHOENIX COMPANY REPORTED PROFIT OF 52 MILLION OR 74 CENTS A SHARE IN THE 1992 FIRST QUARTER SALES ROSE 13 TO 6667 MILLION FROM 5905 MILLION IN REPORTING IMPROVED OPERATING EARNINGS THE NATION'S LARGEST COPPER COMPANY BUCKED A MINING INDUSTRY TREND OF POOR RESULTS BECAUSE OF LOWER METALS PRICES AND HIGHER COSTS FROM BAD WEATHER IN SPITE OF RECORD RAINFALL WHICH HAMPERED MINING AND DILUTED RECOVERY SOLUTIONS THE COMPANY INCREASED COPPER PRODUCTION BY 9 QUARTER TO QUARTER 9304220025 930422 BANC ONE PLANS REDEMPTION COLUMBUS OHIO BANC ONE CORP SAID IT WILL REDEEM ALL 282000 SHARES OUTSTANDING OF ITS CLASS B CONVERTIBLE PREFERRED STOCK ON JUNE 4 SHAREHOLDERS WHO SUBMIT THEIR SHARES FOR CONVERSION WILL RECEIVE 268862 COMMON SHARES FOR EACH PREFERRED SHARE THE BANK HOLDING COMPANY SAID ALL SHARES NOT SUBMITTED FOR CONVERSION AT THE CLOSE OF BUSINESS ON JUNE 3 WILL RECEIVE 26 A SHARE REDEEMED SHARES WILL RECEIVE A PRO RATA DIVIDEND OF 53 CENTS A SHARE 9304220024 930422 WHAT'S NEWS WORLDWIDE INVESTIGATORS COMBED THROUGH RUBBLE AT A CULT SITE AND FOUND 40 BODIES THREE BODIES IN THE CHARRED WRECKAGE OF THE WACO TEXAS COMPOUND HAD RECENT BULLET WOUNDS BUT IT WAS UNCLEAR IF THEY WERE VICTIMS OF SUICIDE OR HOMICIDE OFFICIALS SAID THE FBI DISCLOSED THAT CULT LEADER KORESH WHO DIED WITH 85 OTHERS IN A FIRE MONDAY HAD SENT LETTERS TO THE AGENCY WARNING OF AN EXPLOSION AND VOWED TO USE CHILDREN IN THE BRANCH DAVIDIAN COMPOUND AS HOSTAGES TO PROTECT HIMSELF A WHITE HOUSE SPOKESMAN SAID IT HAD MOUNTAINS OF EVIDENCE OF PROLONGED CHILD ABUSE AT THE COMPOUND THAT WAS CONTINUING BUT THE FBI CITED ONLY OLD REPORTS AND A PSYCHIATRIST'S ANALYSIS THE UN DISARMED THE MUSLIM DEFENDERS OF SREBRENICA AND DECLARED THAT THE BOSNIAN TOWN'S DEMILITARIZATION WAS COMPLETE BUT A UN SPOKESMAN SAID MANY OF THE MUSLIM FIGHTERS MAY HAVE FLED TO NEARBY HILLS MEANWHILE FIGHTING RAGED IN CENTRAL BOSNIA BETWEEN MUSLIM AND CROAT FORCES DESPITE AN ANNOUNCED CEASEFIRE THE SUPREME COURT REFUSED TO PLACE NEW LIMITS ON THE TYPE OF CLAIMS THAT STATE PRISONERS MAY MAKE IN APPEALS TO FEDERAL COURTS THE 54 RULING CAME IN A CASE FROM MICHIGAN BUT IN ANOTHER CASE THE COURT ADDED TO A SERIES OF RULINGS LIMITING STATE PRISONERS' ABILITY TO GET FEDERAL JUDGES' HELP A RUSSIAN COURT DECISION BOOSTED PRESIDENT YELTSIN'S CHANCES IN A REFERENDUM SCHEDULED FOR SUNDAY THE DECISION BY THE CONSTITUTIONAL COURT MEANS THAT TO WIN A VOTE OF CONFIDENCE IN HIS LEADERSHIP YELTSIN WILL NEED THE BACKING OF HALF OF THOSE WHO CAST BALLOTS A TARGET WIDELY VIEWED AS ATTAINABLE SECRETARY OF STATE CHRISTOPHER PRAISED PALESTINIANS AS COURAGEOUS AFTER THEY ENDED A WEEKLONG BOYCOTT OF MIDEAST PEACE TALKS HE URGED ISRAEL TO IMPROVE LIVING CONDITIONS ON THE WEST BANK AND IN GAZA AND SAID THE NEGOTIATIONS COULD PAVE THE WAY FOR PALESTINIAN SELFGOVERNMENT THE TALKS ARE TO RESUME TUESDAY IN WASHINGTON ISRAELI SOLDIERS SHOT AND KILLED TWO PALESTINIAN YOUTHS IN GAZA REFUGEE CAMPS AND WOUNDED DOZENS OF OTHERS AS WIDESPREAD RIOTING ERUPTED ACCORDING TO ARAB REPORTS MEANWHILE HEAVY SHELLING OCCURRED IN SOUTH LEBANON AND NORTHERN ISRAEL AS ISRAELI GUNNERS BATTLED GUERRILLAS INMATES IN LUCASVILLE OHIO ENDED A 10DAY SIEGE AT THE STATE'S MAXIMUMSECURITY PRISON AND FILED OUT OF THEIR CAPTURED CELLBLOCK SEVERAL WERE BROUGHT OUT IN STRETCHERS OFFICIALS HAD SAID ABOUT 450 INMATES HAD BEEN BARRICADED INSIDE AT LEAST EIGHT PEOPLE DIED IN THE UPRISING 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 CLINTON ANNOUNCED IN ADDITION THE PRESIDENT COMMITTED THE US TO REDUCING EMISSIONS OF GREENHOUSE GASES SUCH AS CARBON DIOXIDE TO 1990 LEVELS BY THE YEAR 2000 A FEDERAL APPEALS COURT RULED THAT A LAW DESIGNED TO FIGHT THE KU KLUX KLAN MAY STILL BE A VIABLE MEANS OF PREVENTING PROTESTERS FROM BLOCKADING ABORTION CLINICS THE DECISION CAME DESPITE A RECENT SUPREME COURT RULING THAT SEEMED TO ESTABLISH THAT THE KU KLUX KLAN ACT DIDN'T APPLY TO ANTIABORTION GROUPS THE CLINTON ADMINISTRATION UNVEILED ITS FIRST MAJOR EDUCATION LEGISLATION SAYING THE VOLUNTARY NATIONAL STANDARDS WOULD IMPROVE THE US WORK FORCE THE 420 MILLION PACKAGE CALLS FOR STANDARDS TO DETERMINE WHAT STUDENTS SHOULD KNOW AND HOW TO TEST FOR IT BRAZILIANS VOTED STRONGLY IN FAVOR OF REMAINING A PRESIDENTIAL REPUBLIC RATHER THAN RETURNING TO A MONARCHY OR ADOPTING A PARLIAMENTARY SYSTEM ALTHOUGH THE FINAL RESULTS WON'T BE KNOWN FOR SEVERAL DAYS EXIT POLLS SHOWED THE REPUBLIC OUTPOLLING MONARCHY BY 71 TO 11 SOUTH AFRICAN POLICE QUESTIONED FIVE MORE WHITE MEN IN CONNECTION WITH THE APRIL 10 SLAYING OF BLACK POLITICIAN CHRIS HANI ONE TOP POLICE OFFICIAL SAID THE KILLING MAY HAVE BEEN PART OF A CONSPIRACY WITH POSSIBLE FOREIGN LINKS JANUSZ WALUS HANI'S ACCUSED ASSASSIN IS TO APPEAR IN COURT MAY 12 DIED CANTINFLAS 81 MEXICAN COMIC ACTOR KNOWN ABROAD FOR HIS ROLE AS PASSEPARTOUT IN AROUND THE WORLD IN 80 DAYS TUESDAY IN MEXICO CITY OF LUNG CANCER 9304220023 930422 INTERNATIONAL BRIEF AB VOLVO EXECUTIVE SALARIES DISCLOSED AMID SHAREHOLDER DISCORD AB VOLVO CHAIRMAN PEHR GYLLENHAMMAR DISCLOSED SALARIES OF CERTAIN TOP EXECUTIVES IN HOPES OF QUIETING DISCONTENT AMONG SMALL SHAREHOLDERS LAST YEAR AFTER 21 YEARS WITH THE COMPANY AND NINE AS CHAIRMAN MR GYLLENHAMMAR RECEIVED 95 MILLION SWEDISH KRONOR 13 MILLION PLUS AN UNDISCLOSED BONUS FREE HOUSING AND A COMPANY CAR CHIEF EXECUTIVE OFFICER SOEREN GYLL RECEIVED A SALARY OF 45 MILLION KRONOR PLUS BONUS FREE HOUSING AND CAR SWEDISH LAW DOESN'T REQUIRE DISCLOSURE OF TOP EXECUTIVES' SALARIES MR GYLLENHAMMAR ALSO DISCLOSED THAT VOLVO'S PREVIOUS CHIEF EXECUTIVE CHRISTER ZETTERBERG HAS RECEIVED SEVERANCE PAYMENTS TOTALING 17 MILLION KRONOR AND IS DUE A FURTHER 58 MILLION KRONOR IN PENSION BENEFITS ROGER HOLTBACK FORMER HEAD OF THE COMPANY'S CAR DIVISION RECEIVED 58 MILLION KRONOR IN SEVERANCE PAY AFTER RESIGNING ABRUPTLY IN 1990 SHAREHOLDERS HAD BEEN ANGERED BY REPORTS SUGGESTING MESSRS ZETTERBERG AND HOLTBACK RECEIVED GOLDEN PARACHUTES OF MORE THAN TRIPLE THE ACTUAL AMOUNTS 9304220022 930422 MOVIES FILM PREMIERES ON CABLE TV ARE IN WORKS BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL TELECOMMUNICATIONS WOULD GET PAYPERVIEW CABLE RIGHTS TO CAROLCO'S FILMS WHICH AS LARGESCALE EVENT MOVIES WOULD LEND THEMSELVES TO THIS MEDIUM THEATER OWNERS WILL HATE THIS PLAN HOLLYWOOD AGENTS HAVE BEEN SOUNDED OUT ON IT AND THOUGH THEY GENERALLY WERE IN FAVOR ONE SAID THERE WAS A CONCERN THAT SOME FILM DIRECTORS MIGHT NOT WANT THEIR WORK TO BE SEEN FIRST ON THE SMALL SCREEN METROGOLDWYNMAYER INC THE STUDIO THAT WOULD HOLD RIGHTS TO THE FILMS IN THEATERS REPORTEDLY SEES THE PLAN AS A MARKETING BOOST FOR THE FILMS MGM WHICH HAS BEEN STRUGGLING LATELY HAS BEEN HAVING TROUBLE GETTING ITS FILMS INTO THEATERS AS IT IS SO THIS COULD BE A WELCOME ALTERNATIVE WHEN INDUSTRY EXECUTIVES HAVE FANTASIZED PUBLICLY ABOUT SUCH A SCHEME IN THE PAST A PRICE OF 25 FOR A PAYPERVIEW CUSTOMER HAS BEEN MENTIONED TELECOMMUNICATIONS AND CAROLCO WOULDN'T COMMENT ON THE PROPOSED AGREEMENT AND IT HADN'T YET BEEN DETERMINED WHETHER THE INVESTMENT WOULD BE IN THE FORM OF EQUITY OR THE FINANCING OF INDIVIDUAL FILMS IN ANY EVENT TELECOMMUNICATIONS WOULD BECOME THE FIFTH MAJOR STRATEGIC PARTNER IN THE LONGTROUBLED FILM PRODUCER LIKE THE OTHER PARTNERS IT WANTS TO TAP INTO THE FILMMAKING ACUMEN OF MARIO KASSAR CAROLCO'S CHAIRMAN AND PRODUCER OF SUCH FILMS AS THE TERMINATOR MOVIES BASIC INSTINCT AND TOTAL RECALL TELECOMMUNICATIONS BASED IN DENVER HOLDS A 50 STAKE IN REISS MEDIA ENTERPRISES INC A PAYPERVIEW COMPANY THAT REACHES 10 MILLION SUBSCRIBERS WITH MOVIES AND SPECIAL EVENTS TELECOMMUNICATIONS ALSO IS INVOLVED IN A NEW MOVIESONDEMAND SERVICE NOW BEING TESTED IN DENVER SUBURBS IN A PARTNERSHIP WITH U S WEST AND AMERICAN TELEPHONE & TELEGRAPH CO THEATER OWNERS LONG HAVE DREADED SUCH AN ARRANGEMENT ONE SUCH EXECUTIVE CALLED IT POTENTIALLY DEVASTATING FOR EXHIBITION AND ADDED I DON'T THINK IT WILL WORK I'D BE SURPRISED IF ANY OF THE MAJOR STUDIOS ENDORSED IT THE ONLY REASON CAROLCO AND MGM ARE DOING IT IS THAT FOR THEM IT MIGHT BE A MATTER OF SURVIVAL THE EXECUTIVE ASKED NOT TO BE NAMED BECAUSE HE SAID HIS COMPANY DIDN'T WANT TO OFFEND JOHN MALONE CHAIRMAN OF TELECOMMUNICATIONS TIME WARNER INC WITH ITS MOVIE STUDIO ALSO HAS A STAKE IN A PAYPERVIEW COMPANY VIEWER'S CHOICE BUT HASN'T YET TRIED SHOWING PREMIERES OF BIGTICKET FILMS ON THE SERVICE IF THIS IS A WAY OF INSURING THAT PAYPERVIEW GETS THE OPENING WINDOW OR AN EARLIER WINDOW THAN THE THEATRICAL RELEASE THIS IS AN EXTREMELY SMART MOVE SAYS JOHN TINKER A MEDIA ANALYST WITH FURMAN SELZ THIS WILL PUT PRESSURE ON OTHER STUDIOS TO FOCUS ON THAT ISSUE AND ENHANCE THE IMAGE OF PAYPERVIEW FOR CAROLCO THE INVESTMENT REPRESENTS YET ANOTHER EPISODE IN THE RESUSCITATION OF A MOVIE COMPANY THAT BARELY AVOIDED BANKRUPTCY THREE OVERSEAS PARTNERS HAVE PUMPED IN NEARLY 200 MILLION TO KEEP CAROLCO OPERATIONAL THEY ARE AN AFFILIATE OF PIONEER ELECTRONICS CORP OF TOKYO AN AFFILIATE OF ITALY'S RIZZOLI CORRIERE DELLA SERA GROUP AND A UNIT OF FRANCE'S CANAL PLUS SA WITH LYONNAIS IN DECEMBER MGM WHICH IS OWNED BY FRENCH BANK CREDIT LYONNAIS SA AGREED TO INVEST 60 MILLION IN THE COMPANY IN RETURN FOR WORLDWIDE DISTRIBUTION RIGHTS TO CAROLCO'S FILMS BEGINNING NEXT YEAR AFTER THE EXPIRATION OF CAROLCO'S AGREEMENT WITH SONY CORP'S TRISTAR UNIT WHICH DISTRIBUTES CAROLCO FILMS IN THE US THE OTHER PARTNERS WERE TO PROVIDE ANOTHER 60 MILLION THESE AGREEMENTS WHICH HAVE YET TO BE COMPLETED WERE TO HELP PROVIDE FUNDING FOR CAROLCO'S FUTURE FILMS TELECOMMUNICATIONS'S MOVE REPORTS OF WHICH HAVE SURFACED IN HOLLYWOOD TRADE NEWSPAPERS COMES AGAINST A BACKDROP OF INCREASING DEALMAKING ACTIVITY IN HOLLYWOOD AS US TECHNOLOGY COMPANIES WITH PROGRAMDELIVERY CAPABILITIES TRY TO STAKE OUT ACCESS TO FILMS FOR THE APPARENTLY LOOMING WORLD OF 500 TV CHANNELS UNCLEAR SO FAR IS HOW TED TURNER FITS INTO THE PICTURE TELECOMMUNICATIONS CURRENTLY IS IN TALKS TO RESTRUCTURE TURNER BROADCASTING SYSTEM INC IN WHICH IT HOLDS A 25 STAKE MR TURNER IS SAID TO HARBOR AN INTEREST IN MOVIE PRODUCTION WITH MGM A POSSIBLE VEHICLE MARK ROBICHAUX IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9304220021 930422 LIMITED SEEKS TOKYO DELISTING TOKYO KYODO LIMITED INC THE US WOMEN'S APPAREL RETAILER PLANS TO DROP ITS LISTING ON THE TOKYO STOCK EXCHANGE SOON MARKET OFFICIALS SAID THE EXCHANGE SAID THE COMPANY SUBMITTED AN APPLICATION TO DROP ITS LISTING CITING A SMALL TRADING VOLUME AND HIGH LISTING COSTS IN COLUMBUS OHIO A LIMITED SPOKESMAN CONFIRMED THE COMPANY WILL DELIST HE EXPECTS THE TOKYO EXCHANGE TO DELIST ITS SHARES BY MIDSUMMER LIMITED WILL BE THE SIXTH FOREIGN COMPANY TO LEAVE THE EXCHANGE THERE WILL BE A TOTAL OF 114 FOREIGN FIRMS LISTED IN TOKYO AFTER IT LEAVES 9304220020 930422 OTC FOCUS EARNINGS SEASON STIRS TRADING JITTERS BUT NASDAQ COMPOSITE STILL RISES 031 BY MARY ROMANO SPECIAL TO THE WALL STREET JOURNAL NEW YORK EARNINGS REPORTS ARE MAKING INVESTORS JUMPY BUT NOT ENOUGH TO PREVENT OVERTHECOUNTER STOCKS FROM CLIMBING IN TRADING THAT GAINED MOMENTUM LATER IN THE SESSION SELLING PRESSURE WAS OFF TECHNOLOGY AND HEALTHCARE STOCKS ALTHOUGH THERE WAS SOME PROFITTAKING IN COMPUTER STOCKS SUCH AS MICROSOFT WHICH FELL 1 7/8 TO 84 7/8 AND DELL COMPUTER WHICH LOST 2 5/8 TO 28 5/8 INVESTORS RUSHED TO SELL SHARES OF FIRMS WHOSE FIRSTQUARTER RESULTS LAGGED BEHIND EXPECTATIONS ANY EARNINGS DISAPPOINTMENTS ARE A DISASTER TO THE STOCKS REPORTING THEM SAID LESLIE SEFF MANAGER OF NASDAQ TRADING AT WAGNER STOTT & CO SUN MICROSYSTEMS WAS ONE VICTIM IT SLUMPED 1 3/4 TO 26 1/4 AFTER REPORTING DISAPPOINTING FISCAL THIRDQUARTER EARNINGS LATE TUESDAY IT HAD PROFIT OF 47 CENTS A SHARE COMPARED WITH 60 CENTS A SHARE IN LAST YEAR'S THIRD QUARTER SIERRA SEMICONDUCTOR LOST 3 5/8 TO 7 3/8 AFTER IT POSTED FIRSTQUARTER EARNINGS OF SIX CENTS A SHARE COMPARED WITH 37 CENTS A SHARE A YEAR EARLIER THE COMPANY SAID SALES OF ITS ARIA CHIP SETS INTRODUCED LAST FALL HAVE BEEN DISAPPOINTEDLY SLOW SYNALLOY A SPECIALTY CHEMICAL AND STAINLESS STEEL PIPE MAKER DROPPED 3 3/4 TO 17 1/4 IT REPORTED DISAPPOINTING FIRSTQUARTER EARNINGS LATE TUESDAY EARNINGS OF 26 CENTS A SHARE FELL FOUR CENTS SHORT OF ANALYSTS' MEAN ESTIMATE THOSE COMPANIES WITH POSITIVE EARNINGS RESULTS WERE REWARDED WITH GAINS MERIT MEDICAL SYSTEM CLIMBED 1 1/4 TO 5 3/4 AFTER REPORTING FIRSTQUARTER NET INCOME OF EIGHT CENTS A SHARE ON MORE SHARES THAT COMPARED WITH ONE CENT A SHARE A YEAR EARLIER TELLABS JUMPED 3 5/8 TO 24 3/4 LATE TUESDAY IT REPORTED FIRSTQUARTER OPERATING INCOME OF 29 CENTS A SHARE COMPARED WITH 24 CENTS A YEAR EARLIER COWEN & CO TODAY RAISED ITS SHORTTERM INVESTMENT RATING ON TELLABS TO OUTPERFORM FROM NEUTRAL OVERTHECOUNTER STOCKS BOUNCED BACK YESTERDAY BECAUSE INVESTORS REALIZED THE RECENT WEAKNESS IS NOT THE START OF A DOWNTREND SAID JIM BELLINI DIRECTOR OF EQUITY TRADING AT DAIN BOSWORTH WIDE SELLOFFS IN HEALTHCARE AND BIOTECHNOLOGY STOCKS EASED SOMEWHAT MARKET PLAYERS SAID WITH TRADING MIXED IN YESTERDAY'S SESSION INVESTORS ALSO ARE COMING OUT OF SOME OF THE BANK STOCKS AND HEADING TO CYCLICAL STOCKS SUCH AS HEALTH CARE SAID PAUL STANTON HEAD OF OTC TRADING AT JOHNSTON LEMON & CO SOME BIOTECHNOLOGY STOCKS FELL INCLUDING AMGEN WHICH LOST 1 3/4 TO 39 1/4 AND BIOGEN WHICH SLIPPED 1 3/8 TO 31 1/8 BUT TWO OTHER BIOTECH FIRMS SAW THEIR SHARES INCH UP AFTER POSITIVE NEWS ON THEIR RESEARCH AND DEVELOPMENT PLANS FOR DRUGS GENELABS TECHNOLOGIES GAINED 3/8 TO 6 3/8 THE REDWOOD CITY CALIF BIOTECHNOLOGY COMPANY SAID ITS NEW CANCER DRUG GL331 BEGAN CLINICAL TRIALS AT THE UNIVERSITY OF TEXAS CANCER CENTER ANOTHER BIOTECHNOLOGY COMPANY PROCYTE JUMPED 3/8 TO 8 1/2 THE COMPANY SAID IT HAS DEVELOPED A DRUG DELIVERY SCREENING SYSTEM TO TEST ITS HAIR GROWTH TECHNOLOGY RESEARCH AND DEVELOPMENT CONTINUES ON ITS HAIR GROWTH DRUG TRICOMIN IN PREPARATION FOR CLINICAL TESTING STRYKER A MEDICAL DEVICE MAKER JUMPED 1 1/2 TO 26 AFTER REPORTING FIRSTQUARTER EARNINGS OF 30 CENTS A SHARE UP FROM 23 CENTS A YEAR AGO PURITANBENNETT JUMPED ONE TO 16 1/4 THE MEDICAL EQUIPMENT MAKER SAID IT HAS AUTHORIZED THE BUYBACK OF UP TO ONE MILLION OF ITS COMMON SHARES OUTSTANDING THE COMPANY HAS ABOUT 12 MILLION SHARES OUTSTANDING AMONG TECHNOLOGY ISSUES NOVELL GAINED ONE TO 32 1/4 WHILE INTEL AFTER SLIDING 12 1/4 ON MONDAY JUMPED 1 3/4 TO 102 3/4 BORLAND INTERNATIONAL CLIMBED 2 1/4 TO 23 AFTER ANNOUNCING IT HAD JOINED WITH WORDPERFECT CORP IN AN ALLIANCE TO SHARE TECHNOLOGY AND RESEARCH AND DEVELOPMENT THE TWO COMPANIES ALSO WILL COORDINATE MARKETING AND SALES PROGRAMS TO MAKE IT EASIER FOR CUSTOMERS TO PURCHASE THEIR PRODUCTS 9304220019 930422 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 2 13/16 LOW 3 NEAR CLOSING BID 3 1/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 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 309 30 DAYS 310 60 DAYS 311 90 DAYS CERTIFICATES OF DEPOSIT 258 ONE MONTH 263 TWO MONTHS 265 THREE MONTHS 274 SIX MONTHS 295 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 298 30 DAYS 298 60 DAYS 298 90 DAYS 301 120 DAYS 303 150 DAYS 304 180 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 3/16 ONE MONTH 3 1/4 THREE MONTHS 3 5/16 SIX MONTHS 3 9/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INT 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 701 60 DAYS 713 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 705 60 DAYS 715 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 495 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 273 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9304220018 930422 POLITICS & POLICY TWO TOUGH SPRING CAMPAIGNS APPROACH FULL BLOOM TEXAS PACK HUNTS APPOINTED SENATOR VOWS BLOODY FIGHT BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL AUSTIN TEXAS BOB KRUEGER IS BACK ON FAMILIAR GROUND AT ONCE AHEAD IN THE POLLS AND IN TROUBLE TEXAS' SENATE ELECTION NEXT WEEK HAS TURNED INTO A FREEWHEELING RACE WITH 23 CANDIDATES PURSUING THE APPOINTED DEMOCRATIC INCUMBENT WHO HAS TWICE BEFORE SEEN SENATE VICTORIES SLIP AWAY FROM HIM GOP INFIGHTING ASSURES HIM OF WINNING ONE OF THE TWO SPOTS IN THE JUNE RUNOFF BUT TOP REPUBLICANS ARE TOGETHER OUTDRAWING THE 57YEAROLD INCUMBENT GUARANTEEING HIM A BLOODY FIGHT TO HOLD ON TO THE SEAT VACATED BY TREASURY SECRETARY LLOYD BENTSEN LEADING THE CHALLENGERS IS KAY BAILEY HUTCHISON ELECTED STATE TREASURER ONLY THREE YEARS AGO AND NOW BIDDING TO BE TEXAS'S FIRST WOMAN SENATOR FAST BEHIND HER IS JACK FIELDS A HOUSTON CONGRESSMAN WHOSE TELEVISION ADS EVOKE BIG SKY WESTERNS AND SOULFUL BLUES TO CAST HIM AS THE NEW FRIEND OF THE WORKING MAN THE TWO POTENTIAL SLEEPERS ARE JOE BARTON MR FIELDS'S HOUSE COLLEAGUE WHO APPEARS TO HAVE SIDETRACKED HIS CAMPAIGN BY MOVING TOO FAR TO THE RIGHT AND RICHARD FISHER AN INVESTMENT BANKER FROM THE TRADITION OF WEALTHY ENTREPRENEUR POLITICIANS THAT GAVE TEXAS PAPPY O'DANIEL IN THE 1930S AND ROSS PEROT TODAY AN ADVISER TO MR PEROT LAST YEAR AND THE SONINLAW OF A FORMER REPUBLICAN LAWMAKER MR FISHER RUNS AS A JEFFERSONJACKSON DEMOCRAT WITH A HARVARD DEGREE I'LL FIGHT GOVERNMENT BY THE GREEDY AND FOR THE GREEDY HE VOWS AND HIS 2 MILLION FOR TELEVISION ADS AND ANTIINCUMBENT PITCH MAKE HIM A WILD CARD FOR BOTH PARTIES IN THESE FINAL DAYS WITH REPUBLICAN FILIBUSTERS ALREADY FRUSTRATING PRESIDENT CLINTON'S PROGRAM THE POLITICAL STAKES ARE CLEAR DEMOCRATS HAVE ONLY A 5743 MAJORITY IN THE SENATE AND A LOSS WOULD MAKE IT THAT MUCH HARDER TO GET THE 60 VOTES NEEDED TO LIMIT DEBATE AGAINST THE SPRING WILDFLOWERS AND GREEN PROMISE OF THE TEXAS HILL COUNTRY THE PALLIDNESS OF THE CANDIDATES' PERSONAS IS STRIKING A QUARTER CENTURY AFTER LYNDON JOHNSON ANNOUNCED THAT HE WAS COMING HOME FROM WASHINGTON THOSE WHO WOULD SERVE IN HIS OLD SENATE HAUNTS HAVE LITTLE OF HIS MUSCULAR TEXAS STYLE AND SEEM FRIGHTENED AT HOW TO ANSWER VOTERS UNEASY WITH NEW TAXES AND TH THREAT OF FOREIGN COMMITMENTS TO BOSNIA OR RUSSIA MR KRUEGER'S AIR OF GRAVITAS HE IS FOND OF QUOTING PLUTARCH AND EXPERIENCE AS A FORMER CONGRESSMAN COULD BE HIS SALVATION BUT IN A STATE THAT CELEBRATES BIGNESS HIS GREAT FLAW MAY BE THINKING SMALL HIS BIG ISSUE IS A SELFIMPOSED 20 PAY CUT AND HE SHOWS THE SAME CAUTION THAT HELPED UNDO HIM IN SENATE RACES IN 1978 AND 1984 HE WOULD RUN OVER HIS GRANDMOTHER TO GET TO THE MIDDLE OF THE ROAD SNORTS JIM HIGHTOWER A POPULIST FORMER STATE AGRICULTURE COMMISSIONER AFTER PENNING AN ELOQUENT LETTER IN DEFENSE OF LIFTING THE BAN ON GAYS IN THE MILITARY MR KRUEGER HASTILY RETREATED WHEN OPPOSITION MOUNTED THIS YEAR A PAIR OF BOOTS A PROMISE AND A MISSION READS A CAMPAIGN FLIER BUT AFTER TWO DECADES IN AND OUT OF AUSTIN AND WASHINGTON HE RESEMBLES MOST A SHY OXFORD DON WHO HAS WANDERED INADVERTANTLY INTO THE TUMULT OF TEXAS POLITICS WHEN DEMOCRATIC GOV ANN RICHARDS WHO APPOINTED MR KRUEGER TO THE SENATE SEAT IN JANUARY IS PRESSED ON HIS PERFORMANCE IN THE CAMPAIGN SHE FIXES A REPORTER WITH A LOOK OF STEELY BEMUSEMENT I HAVEN'T NOTICED ANYTHING FEISTY FROM ANY OF THE REST OF THEM SHE SAYS OF THE SENATE FIELD WHY SINGLE HIM OUT SOCIAL ISSUES LIKE GAYS IN THE MILITARY AS WELL AS ECONOMIC ONES LIKE THE PROPOSED ENERGY TAX HAVE LEFT TEXAS COOL TOWARD MR CLINTON BUT WHILE DEMOCRATS UNDERSTAND MR KRUEGER'S NEED TO RUN FROM THE PRESIDENT THEY FEAR HE'S ALSO RUNNING FROM THE VERY THEMES THAT HELPED THE PARTY WIN THE WHITE HOUSE PRESIDENT CLINTON IS UNPOPULAR SAYS REP MIKE ANDREWS OF HOUSTON BUT THE THEMES OF HEALTH CARE EDUCATION FOR MIDDLECLASS KIDS AND PUTTING WELFARE RECIPIENTS TO WORK RESONATE WITH VOTERS IN TEXAS IN THE GOOD OL' BOY WORLD OF TEXAS POLITICS THE ELECTION IS BEST EXPLAINED THROUGH TWO WOMEN GOV RICHARDS AND MS HUTCHISON THE GOVERNOR'S CHOICE OF MR KRUEGER REFLECTED A CALCULATED EFFORT TO REACH OUT TO TORY DEMOCRATS MR KRUEGER'S CIVIL RIGHTS RECORD SUITS HER OWN SOCIAL LIBERALISM WHILE HIS SUPPORT FOR THE NORTH AMERICAN FREE TRADE AGREEMENT IS IMPORTANT TO HER ECONOMIC DEVELOPMENT STRATEGY AND ALLIANCE WITH BUSINESS INTERESTS BUT SHE COULD YET PAY A PRICE AMONG PARTY LIBERALS NEXT WEEK'S BALLOTING WILL ALSO DECIDE A REFERENDUM ISSUE CRUCIAL TO HER REFORMS OF PUBLIC SCHOOL FINANCING AND HER BACKERS WORRY THAT MR KRUEGER'S CANDIDACY MAKES IT THAT MUCH HARDER TO ENERGIZE CORE DEMOCRATS NEEDED TO PASS THE INITIATIVE JUST AS GOV RICHARDS IS A WOMAN CHOOSING A MAN TO ADVANCE HER AGENDA MS HUTCHISON IS A WOMAN BACKED BY A CADRE OF MEN HOPING SHE WILL SAVE THEM FROM THEMSELVES FOR DECADES TEXAS REPUBLICANS HAVE PRACTICED A KNEEINTHEGROIN STYLE OF POLITICS AND ASKED TO BE FORGIVEN BECAUSE THEY WERE A MINORITY BATTLING ENTRENCHED DEMOCRATS NOW IN THE AFTERMATH OF THE HOUSTON NATIONAL CONVENTION MODERATES FEAR THESE TACTICS ARE SELFDESTRUCTIVE AND MS HUTCHISON OFFERS A NEW FACE FOR THE PARTY A GOVERNMENT BETTER FOR OUR SONS OPEN FOR OUR DAUGHTERS IS HER REFRAIN AND MS HUTCHISON RECALLS EMOTIONALLY HER STRUGGLE AS A YOUNG ATTORNEY SHUNNED BY MALEDOMINATED TEXAS LAW FIRMS BUT THIS INTENSITY UNLEAVENED BY HUMOR CAN BE A LIABILITY AS WELL AND THE 49YEAROLD CHALLENGER HURT HERSELF BY LASHING OUT AT RIVALS WHEN RESPONDING TO RECENT NEWS REPORTS THAT SHE IS A TEMPERMENTAL BOSS AND ABUSIVE OF STATE EMPLOYEES HER CHIEF THREAT APPEARS TO BE MR FIELDS ALTHOUGH RUNNING SHORT OF CASH HE HAS CATAPULTED HIMSELF TO THE FRONT RANKS OF THE STATE GOP BY HIS PERFORMANCE IN THIS RACE A PROPENSITY FOR CORPORATE JUNKETS AND POLITICAL ACTION COMMITTEE CONTRIBUTIONS COULD YET BE HIS UNDOING BUT THE AFFABLE CONGRESSMAN HAS A POLITICAL SAVVY LEARNED AS A YOUNG REAGANAUT FROM THE BLUECOLLAR DEMOCRATIC PRECINCTS AMID EAST HOUSTON'S SHIP CHANNELS TRAILING IN POLLS MR BARTON HOPES TO GET SOME BOUNCE FROM CURRENT ISSUES FIRST BY OPPOSING GAYS IN THE MILITARY AND NOW TARGETING GOV RICHARDS'S SCHOOL FINANCE REFERENDUM THESE EMPHASES DISTRACT ATTENTION FROM HIS MORE SUBSTANTIAL CREDENTIALS AS A FISCAL CONSERVATIVE IN CONGRESS IN THIS SEASON OF CAMPAIGN FINANCE REFORM THERE IS ALSO A BITTER LESSON IN HIS INABILITY TO MATCH MR FISHER'S MILLIONS OR THE PAC MONEY GOING TO MR FIELDS CAUGHT BETWEEN THE TWO AT A HOUSTON DEBATE THE BESPECTACLED INDUSTRIAL ENGINEER RESPONDED WITH FRUSTRATED HUMOR WHEN MR FISHER PROCLAIMED HIMSELF THE ONLY CANDIDATE WHO HAD VOWED TO RISE ABOVE THE TEMPTATION OF PAC FUNDS RICHARD IS THE ONLY PERSON HERE WHO GIVES TO PACS MR BARTON SAID SEE RELATED ARTICLE WISCONSIN BATTLE FOR HOUSE JOINED BY INTEREST GROUPS WSJ APRIL 22 1993 9304220017 930422 BUSINESS BRIEF DUN & BRADSTREET CORP FIRSTQUARTER LOSS POSTED ACCOUNTING CHANGE IS CITED THE BUSINESS INFORMATION COMPANY POSTED A LOSS OF 354 MILLION OR 20 CENTS A SHARE INCLUDING AN ACCOUNTING CHARGE OF 1406 MILLION OR 79 CENTS A SHARE BEFORE THE CHARGE EARNINGS WERE 1052 MILLION OR 59 CENTS A SHARE A YEAR EARLIER NET INCOME WAS 982 MILLION OR 55 CENTS A SHARE OPERATING REVENUE FELL 33 TO 107 BILLION BEFORE DIVESTITURES AND OTHER REVENUE TIMING FACTORS D&B SAID THAT EXCLUDING THE IMPACT OF THE STRONGER DOLLAR AND DIVESTITURES IT EXPECTS DOUBLEDIGIT GROWTH IN OPERATING PROFIT FOR ITS CURRENT BUSINESSES FOR THE SECOND QUARTER AND THE FULL YEAR AND IT SAID REVENUE GROWTH IS CURRENTLY PROJECTED TO BE IN THE SAME RANGE AS LAST YEAR 9304220016 930422 LAW LEGAL BEAT COURTS DEBATE PATIENT RIGHTS DOCTORS' PACTS BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL THE DEBATE OVER HOW MUCH FREEDOM PATIENTS SHOULD HAVE TO CHOOSE THEIR OWN DOCTORS ALREADY A HOT TOPIC POLITICALLY IS ALSO HEATING UP IN THE COURTS AT ISSUE IN THE COURT CASES IS WHETHER TO ENFORCE RESTRICTIONS IN DOCTORS' EMPLOYMENT CONTRACTS THAT PREVENT PHYSICIANS FROM TAKING PATIENTS WITH THEM IF THEY LEAVE ONE GROUP PRACTICE TO JOIN ANOTHER THE CLAUSES ARE INCREASINGLY COMMON AS MORE DOCTORS BECOME EMPLOYEES OF GROUP HEALTH PLANS RATHER THAN PRACTICE ALONE SOME HEALTH SPECIALISTS ATTACK THE CLAUSES AS INTERFERING WITH PATIENTS' RIGHTS TO BE TREATED BY DOCTORS WITH WHOM THEY HAVE A CONTINUING RELATIONSHIP THE RESTRICTIONS THE SPECIALISTS SAY MAY DIMINISH THE QUALITY OF PATIENTS' CARE BECAUSE NEW DOCTORS WON'T BE AS FAMILIAR WITH THEIR MEDICAL HISTORIES SUCH CONCERNS HAVE STIRRED GROWING SENTIMENT IN SOME COURTS AND STATEHOUSES TO PROTECT PATIENTS' RIGHT TO CHOOSE BY OUTLAWING THE RESTRICTIVE CLAUSES AND THE ISSUE HAS TAKEN ON ADDED SIGNIFICANCE AS PRESIDENT CLINTON'S HEALTHCARE TASK FORCE WHOSE RECOMMENDATIONS ARE TO BE RELEASED NEXT MONTH STRUGGLES TO RETAIN SOME PATIENT CHOICE IN A PROPOSAL THAT IS EXPECTED TO PUSH MORE AMERICANS INTO HEALTH MAINTENANCE ORGANIZATIONS HMOS KEEP EXPENSES AND PREMIUMS DOWN BY REFERRING SUBSCRIBERS ONLY TO AFFILIATED PHYSICIANS WHO IN TURN ARE PAID A FLAT FEE BY THE HMO IN ONE RECENT CASE A FLORIDA APPEALS COURT REFUSED TO ENFORCE A CONTRACT THAT PENALIZED A DOCTOR FOR TAKING PATIENTS AWAY FROM AN HMO WITH WHICH HE HAD BEEN AFFILIATED THE CONTRACT BETWEEN THE DOCTOR AND THE HMO HUMANA MEDICAL PLAN INC REQUIRED THAT IF THE DOCTOR LEFT FOR A COMPETING ORGANIZATION HE WOULD HAVE TO PAY HUMANA 700 FOR EACH OF HIS PATIENTS WHO THEN JOINED THE COMPETITOR'S PLAN DEPICTING THE DOCTORPATIENT RELATIONSHIP AS ALMOST SACROSANCT THE COURT RULED THAT THE 700PERPATIENT CLAUSE IMPROPERLY INTERFERED WITH PATIENTS' RIGHTS TO CHOOSE THEIR DOCTORS PATIENTS ARE NOT THE PROPERTY OR CHATTEL OF AN HMO THE COURT SAID IN ITS OPINION WE BELIEVE THAT THE PUBLIC POLICY OF THIS STATE IS VIOLATED WHEN THE BUSINESS RELATIONSHIP AN HMO HAS WITH ITS AFFILIATED DOCTORS INTERFERES WITH SOMETHING AS FUNDAMENTAL AS THE DOCTOR/PATIENT RELATIONSHIP WHETHER RESTRICTIVE CLAUSES GET ENFORCED DEPENDS ON WHETHER COURTS VIEW THE MEDICAL PROFESSION AS A BUSINESS OR ACCESS TO MEDICAL CARE AND HEALTH CARE AS A RIGHT SAYS MADELEINE ESTABROOK A HEALTHLAW SPECIALIST AT THE BOSTON LAW FIRM LANE & ALTMAN AS MORE PATIENTS FIND THEIR CHOICES RESTRICTED BY HMOS AND OTHER GROUP HEALTH PLANS MS ESTABROOK PREDICTS JUDGES MAY INCREASINGLY VIEW THEIR ROLE AS ONE OF PROTECTING PATIENT RIGHTS CONSEQUENTLY MORE COURTS MAY TRY TO ALLOW PATIENTS TO MOVE WITH THEIR DOCTORS SHE SAYS LEGISLATURES IN CALIFORNIA FLORIDA ALABAMA LOUISIANA NORTH DAKOTA MONTANA MASSACHUSETTS COLORADO AND DELAWARE HAVE PASSED LAWS THAT PROHIBIT MANY KINDS OF RESTRICTIVE CLAUSES IN DOCTORS' CONTRACTS ELSEWHERE HOWEVER THOSE RESTRICTIONS REMAIN AND MOST COURTS CONTINUE TO UPHOLD THEM WITHIN CERTAIN LIMITS IN A 1991 CASE FOR EXAMPLE A NEW YORK APPEALS COURT UPHELD A SOCALLED NONCOMPETE AGREEMENT WHICH RESTRICTS A DOCTOR'S ABILITY TO PRACTICE IN A REGION FOR A PARTICULAR AMOUNT OF TIME AND THEREBY COMPETE WITH HIS FORMER COLLEAGUES THE COURT RULED THAT SUCH AGREEMENTS ARE ENFORCEABLE AS LONG AS THE TIME AND SIZE OF THE REGION SPECIFIED AREN'T UNREASONABLE THE APPEALS COURT UPHELD A CLAUSE THAT BARRED OBSTETRICIAN JOEL NOVENDSTERN FROM PRACTICING FOR THREE YEARS IN PART OF WESTCHESTER COUNTY NY THE SITE OF HIS EARLIER PRACTICE THE MEDICAL GROUP TO WHICH DR NOVENDSTERN HAD BELONGED DEVELOPED AND PROSPERED AS A RESULT OF THE CONSIDERABLE TIME MONEY AND EFFORTS OF ITS MEMBERS THE COURT SAID BY INCLUDING THE RESTRICTIVE COVENANTS IN THE EMPLOYMENT CONTRACTS THE MEMBERS WERE VALIDLY PROTECTING THEIR INTEREST IN THEIR INVESTMENTS FROM COMPETITION IN THE CASE OF AN OBSTETRICIAN SUCH DECISIONS FORCE A WOMAN TO CHOOSE BETWEEN FOLLOWING HER DOCTOR TO AN INCONVENIENT LOCATION OUTSIDE THE RESTRICTED AREA OR FINDING A NEW DOCTOR WHO MAY NOT HAVE OBSERVED HER DURING HER PREGNANCY SAYS PAULA BERG A LAW PROFESSOR AT THE CITY UNIVERSITY OF NEW YORK MS BERG AND OTHER LAWYERS CONTEND THAT NONCOMPETE AGREEMENTS BETWEEN PHYSICIANS SHOULD BE TREATED IN THE SAME WAY AS SUCH ARRANGEMENTS BETWEEN LAWYERS WHICH COURTS REGULARLY STRIKE DOWN IT'S CURIOUS THAT SOME JUDGES TALK IN GRANDIOSE TERMS ABOUT THE PUBLIC SERVICE FUNCTION OF THE LEGAL PROFESSION AND REGARD DOCTORS AS BUSINESS PEOPLE MS BERG SAYS ALTHOUGH COURTS HAVE BEEN RELUCTANT TO REJECT NONCOMPETE CLAUSES AUTOMATICALLY A FEW HAVE BEGUN TO WEIGH PUBLICINTEREST CONCERNS IN ASSESSING WHETHER THE CLAUSES ARE REASONABLE LAST YEAR AN INDIANA APPEALS COURT SAID JUDGES SHOULD BE WARY OF ENFORCING THE PACTS IN AREAS WITH A SHORTAGE OF DOCTORS COURTS HAVE RULED SIMILARLY IN ALABAMA PENNSYLVANIA AND NEW JERSEY SOME HEALTHCARE LAWYERS WORRY THAT SUCH OSTENSIBLY PROPATIENT DECISIONS MAY CLASH WITH THE GOALS OF HEALTH REFORMERS WHO ARE TRYING TO CUT COSTS BY GETTING PATIENTS TO JOIN PLANS THAT DO RESTRICT THEIR CHOICES THERE ARE GOING TO BE MANY TENSIONS BETWEEN COURTS AND LEGISLATURES SAYS ALICE GOSFIELD PRESIDENT OF THE NATIONAL HEALTH LAWYERS ASSOCIATION IN WASHINGTON UNLESS THERE IS A VERY CLEAR LEGISLATIVE MANDATE ABOUT HOW MUCH CHOICE PATIENTS SHOULD GET A FORMER SCIENTIST FOR RJ REYNOLDS TOBACCO CO WHO NOW CRITICIZES THE TOBACCO INDUSTRY WAS PERMANENTLY BARRED FROM HELPING LAWYERS WHO SUE CIGARETTE MAKERS A STATE COURT IN GREENSBORO NC MODIFIED A PREVIOUS ORDER THAT TEMPORARILY BARRED THE SCIENTIST ANTHONY V COLUCCI FROM TESTIFYING AGAINST HIS FORMER EMPLOYER OR DISCUSSING TRADE SECRETS HE LEARNED AT RJ REYNOLDS A UNIT OF RJR NABISCO HOLDINGS GROUP INC THE COURT SAID MR COLUCCI FORMERLY A TOP COMPANY RESEARCHER ON SMOKING AND HEALTH HAD SIGNED AGREEMENTS TO KEEP COMPANY SECRETS SAFE THE COURT ALSO SAID ATTORNEYCLIENT PRIVILEGE AND OTHER LEGAL DOCTRINES REQUIRED MR COLUCCI TO AVOID DISCUSSING TOBACCOLIABILITY LITIGATION HE CANNOT DIRECTLY OR INDIRECTLY REVEAL CONFIDENTIAL INFORMATION AND MUST ALERT RJ REYNOLDS WHENEVER A PLAINTIFFS' LAWYER CONTACTS HIM MR COLUCCI A CONSULTANT IN MARYLAND COULDN'T BE REACHED TO COMMENT ON THE INJUNCTION 9304220015 930422 CANADIAN CONSUMER PRICES FALL OTTAWA CANADA'S CONSUMER PRICE INDEX DECLINED A SEASONALLY ADJUSTED 01 IN MARCH FROM FEBRUARY STATISTICS CANADA A GOVERNMENT AGENCY SAID IT WAS THE FIRST DECLINE IN ALMOST A YEAR IN FEBRUARY THE INDEX ROSE 03 THE MARCH DECLINE WAS ATTRIBUTED PARTLY TO FOOD PRICES WHICH DROPPED 04 PARTLY BECAUSE OF A PRICE WAR AMONG WESTERN CANADIAN FOOD STORES 9304220014 930422 JAPAN'S LISTING OF RAIL SHARES MAY BE BARGAIN BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE JAPANESE GOVERNMENT IS GEARING UP TO SELL SHARES IN A HUGE RAILROAD AND MANY ANALYSTS THINK IT WILL LET THE STOCK GO CHEAP ON TUESDAY EAST JAPAN RAILWAY OR JR EAST MADE A PRELIMINARY APPLICATION TO LIST ITS SHARES ON THE TOKYO STOCK EXCHANGE THE COMPANY SHARES OF WHICH IS 100OWNED BY THE GOVERNMENT ARE EXPECTED TO BE BROUGHT TO MARKET IN SEPTEMBER HOW COULD THE JAPANESE GOVERNMENT LET JR EAST'S STOCK GO AT A BARGAIN PRICE THE REASON ANALYSTS BELIEVE IS THAT THE GOVERNMENT WANTS TO RAISE CASH TO REDUCE THE RAILROAD'S DEBT IT ALSO HOPES TO ATTRACT INVESTORS BACK INTO JAPAN'S STOCK MARKET THE GOVERNMENT WANTS TO AVOID A REPEAT OF THE TROUBLE IT ENCOUNTERED WHEN MAMMOTH NIPPON TELEGRAPH & TELEPHONE CORP WENT PUBLIC IN 1986 THE PRICE OF SHARES IN NTT EVENTUALLY NOSEDIVED SOURING THE PUBLIC ON STOCKS JR EAST WAS SLATED TO GO PUBLIC IN 1991 AND IN 1992 BUT FINANCE AUTHORITIES HELD BACK BECAUSE THEY FEARED A FLOOD OF NEW SHARES WOULD FURTHER DEPRESS THE SINKING TOKYO MARKET IN THE PAST MONTH HOWEVER THE NIKKEI STOCK AVERAGE HAS GAINED MORE THAN 18 AND TRADING HAS BEEN AT ITS HEAVIEST IN MORE THAN A YEAR AS A RAILWAY STOCK JR EAST ISN'T SO ATTRACTIVE SAYS ANALYST KUMIKO TAKASE OF BARCLAYS DE ZOETE WEDD TO RAISE INTEREST IN BOTH JR EAST AND THE ENTIRE STOCK MARKET THOUGH THE GOVERNMENT WANTS TO SELL THE STOCK AS SOON AS POSSIBLE AND THE COMPANY WANTS TO SELL ITSELF AT A LOWER PRICE LEVEL SHE SAYS AT CURRENT MARKET LEVELS ANALYSTS SAY JR EAST WOULD BE A GOOD DEAL AT ABOUT 400000 YEN 3620 A SHARE A BORDERLINE BUY AT 500000 YEN A SHARE AND TOO EXPENSIVE AT 600000 YEN GIVEN ALL THE FANFARE EXPECTATIONS ARE HIGH SAYS ALEXANDER WILBERFORCE AN ANALYST AT SMITH NEW COURT PLC I CAN'T SEE WHY THE GOVERNMENT WOULD LET THE OFFERING FAIL BY PRICING THE SHARES TOO HIGH IF JR EAST SHARES FLOP THE GOVERNMENT COULD BE IN FOR A REPEAT OF ITS NIGHTMARISH EXPERIENCE WITH NTT THE TELEPHONE COMPANY'S SHARES WERE INITIALLY PRICED AT JUST OVER ONE MILLION YEN A SHARE THE STOCK ROSE TO 318 MILLION YEN BEFORE PLUMMETING TO 430000 YEN LAST SUMMER THE MOST WIDELY OWNED STOCK IN JAPAN IT BECAME THE MARKET'S MOST HATED ISSUE NTT CLOSED TUESDAY AT 997000 YEN A SHARE HIROSHI OGINO A SPOKESMAN FOR JR EAST SAYS FINANCE AUTHORITIES LEARNED THEIR LESSON FROM NTT AS A JR EAST OFFICIAL HE CAN'T TALK ABOUT THE VALUE OF HIS COMPANY'S SHARES BUT ADDS WE HOPE AT FIRST THE PRICE WILL BE LOW SO WHAT'S JR EAST REALLY WORTH ON THE PLUS SIDE JR EAST WITH ASSETS OF 68 TRILLION YEN HAD NET INCOME OF MORE THAN 57 BILLION YEN FOR THE FISCAL YEAR ENDED MARCH 31 1992 COMPANY OFFICIALS SAY THEY ARE COMMITTED TO CUTTING COSTS BY PARING STAFF TO 50000 FROM 62000 AND BY DIVERSIFYING AWAY FROM RAILWAYS WHICH CURRENTLY PROVIDE 90 OF REVENUE AGAINST THOSE POSITIVES THERE'S THE COMPANY'S FORMIDABLE DEBT JR EAST OWES MORE THAN FIVE TRILLION YEN 4525 BILLION THE LEGACY OF YEARS OF JAPANESE PORKBARREL RAILWAY CONSTRUCTION AND THE RECENT PURCHASE OF TWO BULLETTRAIN LINES JR EAST WANTS TO SELL TWO MILLION SHARES ABOUT 50 OF THE COMPANY IF THE SHARES FETCH 500000 YEN EACH THE COMPANY WOULD TAKE IN ONE TRILLION YEN 905 BILLION OR JUST 20 OF ITS DEBT ANOTHER ALBATROSS THOUGH THE COMPANY WAS PUT UNDER PRIVATE MANAGEMENT IN 1987 THE GOVERNMENT STILL CONTROLS FARES IF JR EAST WANTS TO RAISE PRICES IT HAS TO CONTEND WITH POLITICAL CONCERNS ABOUT A PUBLIC OUTCRY THE GOVERNMENT IS ALSO INTERESTED IN SELLING SHARES IN JAPAN TOBACCO INC A GOVERNMENTOWNED TOBACCO COMPANY EARLY NEXT YEAR BUT FIRST IT NEEDS TO SEE JR EAST SAFELY LAUNCHED 9304220013 930422 BUSINESS BRIEF AIRBORNE FREIGHT CORP ACCOUNTING CHANGES TO ADD 38 MILLION TO 1STPERIOD NET AIRBORNE FREIGHT CORP SAID ACCOUNTING CHANGES THAT THE COMPANY IS REQUIRED TO MAKE WILL ADD 38 MILLION OR 20 CENTS A SHARE TO FIRSTQUARTER EARNINGS ONE ACCOUNTING CHANGE RELATED TO INCOME TAXES RESULTED IN A CREDIT OF 55 MILLION THE OTHER RELATED TO POSTRETIREMENT BENEFITS RESULTED IN A CHARGE OF 17 MILLION EXCLUDING THE ACCOUNTING CHANGES AIRBORNE SAID IT EXPECTS TO REPORT A PROFIT FOR THE QUARTER BUT WOULDN'T BE MORE SPECIFIC THE SEATTLE TRANSPORTATION CONCERN EXPECTS TO RELEASE FIRSTQUARTER RESULTS MONDAY 9304220012 930422 BUSINESS BRIEF MACANDREWS & FORBES HOLDINGS INC FIRM FACES SUIT OVER OFFER TO BUY MORE MARVEL SHARES MACANDREWS & FORBES HOLDINGS INC SAID A SHAREHOLDER OF MARVEL ENTERTAINMENT GROUP INC SUED CHALLENGING THE TERMS OF AN OFFER BY MACANDREWS TO BUY AS MANY AS 11 MILLION MARVEL SHARES THE LAWSUIT FILED IN DELAWARE STATE COURT SEEKS UNSPECIFIED MONEY DAMAGES AND AN ORDER TO IMPROVE THE TERMS AND STRUCTURE OF THE OFFER THE SUIT DOESN'T SEEK TO DELAY COMPLETION OF THE OFFER SCHEDULED FOR TODAY MACANDREWS & FORBES A NEW YORK HOLDING COMPANY CONTROLLED BY INVESTOR RONALD PERELMAN SAID THE LAWSUIT IS WITHOUT MERIT DEFENDANTS INCLUDE MACANDREWS & FORBES MARVEL AND MARVEL'S BOARD MACANDREWS OWNS 60 OF MARVEL A PUBLISHER OF COMIC BOOKS THE ADDITIONAL 11 MILLION SHARES WOULD AMOUNT TO ABOUT ANOTHER 20 OF THE COMPANY MACANDREWS & FORBES IN MARCH OFFERED TO BUY AS MANY AS 11 MILLION MARVEL SHARES AT 25 A SHARE AT A TIME WHEN THE SHARES WERE TRADING UNDER 20 A SHARE MACANDREWS AT THE TIME SAID THE PURCHASE WAS FOR TAX PURPOSES ALTHOUGH THERE WAS SOME SPECULATION THAT THE OFFER WAS DESIGNED TO DISCOURAGE INVESTORS WHO HAD SOLD MARVEL SHARES HOPING TO BUY THEM BACK AT A LOWER PRICE FOR A SHORT SALE PROFIT IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE MARVEL SHARES WERE QUOTED AT 2475 DOWN 125 CENTS 9304220011 930422 WHO'S NEWS GEORGIAPACIFIC CORP GEORGIAPACIFIC CORP ATLANTA DIANE DURGIN RESIGNED AS SENIOR VICE PRESIDENTLAW AND GENERAL COUNSEL OF THIS FORESTPRODUCTS CONCERN EFFECTIVE MAY 4 SAYING SHE WANTS TO GIVE THE INCOMING CHIEF EXECUTIVE OFFICER AD PETE CORRELL THE CHANCE TO APPOINT HIS OWN GENERAL COUNSEL THE COMPANY HASN'T NAMED A REPLACEMENT FOR MS DURGIN WHO IS 46 YEARS OLD AND IS THE COMPANY'S HIGHESTRANKING WOMAN 9304220010 930422 INTERNATIONAL GIANT LONDON BOURSE SEEKS NEW IDENTITY AND FOCUS AFTER COSTLY PROJECT FAILS BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THE LONDON STOCK EXCHANGE THE WORLD'S OLDEST AND EUROPE'S BIGGEST IS CASTING ABOUT FOR A NEW IDENTITY FOLLOWING THE COLLAPSE LAST MONTH OF ITS MONUMENTALLY COSTLY PROJECT TO DEVELOP A COMPUTERIZED SETTLEMENTS SYSTEM THE LSE BOARD MEETS TODAY FOR THE FIRST TIME SINCE THE RESIGNATION OF ITS CHIEF EXECUTIVE OFFICER TO PONDER QUESTIONS AS BASIC AS DOES EUROPE'S LEADING FINANCIAL CENTER REALLY NEED A STOCK EXCHANGE CRITICS INCLUDING SOME OF THE EXCHANGE'S MEMBER FIRMS AND MOST IMPORTANT CUSTOMERS HAVE LOST PATIENCE WITH THE PACE OF DEVELOPMENT AT THE BOURSE AND ARE DEMANDING THAT MANY OF ITS FUNCTIONS BE HANDED TO OUTSIDE FIRMS OR JOINT VENTURES THERE IS AN INCREASING REALIZATION BOTH INSIDE AND OUTSIDE THE EXCHANGE THAT IT WILL HAVE TO SHARPLY REDUCE ITS ACTIVITIES WHICH INCLUDE BEING DIRECTLY RESPONSIBLE FOR OR OVERSEEING SUCH DIVERSE OPERATIONS AS STOCK AND BOND TRADING TRANSFER AND SETTLEMENT SYSTEMS COMPUTERIZED REAL TIME NEWS AND PRICE INFORMATION SERVICES NEW SECURITIES LISTINGS AND MARKET SUPERVISION AND ENFORCEMENT NO OTHER MAJOR STOCK EXCHANGE HAS SO MANY WIDERANGING RESPONSIBILITIES THE DEMISE OF THE NEW TAURUS SETTLEMENT SYSTEM WHICH HAD COST 500 MILLION 774 MILLION TO DEVELOP SPARKED HARSH COMPLAINTS WE'VE LOST 10 YEARS OF DEVELOPMENT THROUGH THE TAURUS DISASTER SAYS A DIRECTOR AT ONE OF BRITAIN'S BIGGEST BANKS WE NOW EXPECT PERFORMANCE AND VALUE FOR MONEY THINGS REALLY NEED TO GET MARKEDLY BETTER WITHIN 18 MONTHS MICHAEL GRASS MANAGING DIRECTOR OF BARCLAYS GLOBAL SECURITIES SAYS HIS FIRM LIKE THE REST OF THE LONDON FINANCIAL COMMUNITY THINKS IT IS TIMELY TO REASSESS THE EXCHANGE'S RESPONSIBILITY AND SEE IF IT MAKES SENSE TO BE DOING ALL THE THINGS THEY ARE DOING RESPONDING TO THE CRITICISM THE LSE IS TRYING TO RESHAPE THE WAY THE GENERAL PUBLIC AND LONDON'S FINANCIAL COMMUNITY IN PARTICULAR PERCEIVE ITS ROLE AND HOW THEY VALUE ITS CONTRIBUTION TO THE ECONOMY THE MOST IMPORTANT ISSUE FOR EVERYONE TO CONSIDER IS TO WHAT EXTENT ARE WE A COMMERCIAL OPERATION AND TO WHAT EXTENT ARE WE A PUBLIC UTILITY SAYS MARTIN HALL THE EXCHANGE'S CHIEF OF PUBLIC POLICY HE ADDS THAT THE LSE IS TRYING TO FOCUS ON WHAT IS WIDELY CONSIDERED TO BE ITS PRIMARY DUTY ACTING AS THE ECONOMIC INSTRUMENT TO CONVERT SAVINGS INTO LONGTERM INVESTMENT THE EXCHANGE HAS YET TO REPLACE CHIEF EXECUTIVE OFFICER PETER RAWLINS AND INSIDERS DON'T EXPECT AN ANNOUNCEMENT SOON THE STOCK EXCHANGE IS A HEADLESS BEAST SAYS THE HEAD OF A DATA SERVICES GROUP THAT PULLED OUT OF TALKS WITH THE LSE THEY SEEM TO BE ADRIFT OUTSIDERS SAY THE EXCHANGE HAS LARGELY CEDED TO THE BANK OF ENGLAND ITS AUTHORITY TO ORGANIZE THE UNITED KINGDOM'S INVESTMENT COMMUNITY ON TRADINGRELATED ISSUES AS FAR AS THE EVOLUTION OF A NEW SETTLEMENT AND PAYMENT SYSTEM IS CONCERNED THE EXCHANGE WILL HAVE TO TAKE A BACK SEAT FOR THE TIME BEING SAYS JOHN LAMB ASSISTANT GENERAL MANAGER AT NATIONAL WESTMINSTER BANK THE UK CENTRAL BANK APPOINTED A SPECIAL COMMITTEE IMMEDIATELY AFTER THE PLUG WAS PULLED ON TAURUS TO DEVELOP AN ALTERNATIVE SYSTEM A CONSENSUS IN THE CITY OF LONDON AS THE FINANCIAL COMMUNITY IS KNOWN SEEMS TO BE BUILDING FOR A RELATIVELY SIMPLE ROLLING SYSTEM THAT WILL SETTLE EACH TRADE ABOUT 10 DAYS AFTER IT IS MADE CURRENTLY THE EXCHANGE WORKS ON A TWOWEEK BASIS WHICH MEANS SOME TRADES CAN TAKE UP TO FOUR WEEKS TO SETTLE SETTLEMENT TIME ON LONDON'S CHIEF RIVALS PARIS AND FRANKFURT IS ABOUT FOUR DAYS BOTH BOURSES HAVE CONSIDERABLY MORE SOPHISTICATED COMPUTERIZED SYSTEMS WHICH SOME IN LONDON SUGGEST THE LSE PURCHASE AND MODIFY TO ITS NEEDS ANOTHER KEY ISSUE FACING THE LSE IS WHAT TO DO WITH ITS INFORMATION SERVICE SYSTEM KNOW AS TOPIC UNTIL LATE LAST YEAR TOPIC HAD A LUCRATIVE NEAR MONOPOLY ON ALL THE EXCHANGE'S DATA ON SECURITIES PRICES AND VOLUME FIGURES AND WAS ABLE TO DISSEMINATE COMPANY NEWS ABOUT 30 MINUTES BEFORE COMMERCIAL NEWS AGENCIES BUT THOSE ADVANTAGES HAVE BEEN STRIPPED ON GOVERNMENT ORDERS AND COMPETING FINANCIAL NEWS DISTRIBUTORS ARE CLOSING IN WITH THEIR OWN SERVICES NOT ALL THE NEWS IS BAD LAST YEAR LSE FOREIGNEQUITIES TRADING TOTALED A RECORD 330 BILLION UK GOVERNMENT BOND TRADING AT 1238 TRILLION WAS ALSO A RECORD UK AND IRISH STOCK TURNOVER OF 434 BILLION WAS UP 20 FROM 1991 THE EXCHANGE HAS ALSO MOVED DECISIVELY TO REDUCE ITS STAFF WHICH NOW TOTALS AROUND 1000 DOWN FROM 1780 A YEAR AGO AND SHARPLY LOWER THAN ITS PEAK OF ABOUT 3000 IN 1986 9304220009 930422 INTERNATIONAL BRIEF DAEWOO MOTOR CO COMPANY FILES PLAN TO BUILD HONDA MODEL IN SOUTH KOREA DAEWOO MOTOR CO FILED A PLAN WITH THE SOUTH KOREAN GOVERNMENT TO BUILD AND SELL HONDA MOTOR CO'S LEGEND MODELS IN SOUTH KOREA STARTING IN SEPTEMBER THE SOUTH KOREAN MINISTRY OF TRADE INDUSTRY AND ENERGY SAID A MINISTRY OFFICIAL SAID THE PLAN WILL BE APPROVED UNLESS THERE ARE TERMS IN THE CONTRACT BETWEEN THE TWO COMPANIES THAT THE GOVERNMENT CONSIDERS LIKELY TO LEAD TO UNFAIR TRADE UNDER THE AGREEMENT DAEWOO MOTOR WILL PAY HONDA 1 MILLION AS A DOWN PAYMENT AND 2 OF ITS ANNUAL SALES MINUS THE VALUE OF COMPONENTS IMPORTED FROM JAPAN THE TWO ARE PROJECTING SALES OF 2800 LEGENDS IN THE SOUTH KOREAN MARKET THIS YEAR AND EXPECT TO START EXPORTS NEXT YEAR DAEWOO EXPECTS TO SELL 11500 LEGENDS IN THE DOMESTIC MARKET AND 1000 IN OVERSEAS MARKETS IN 1995 DAEWOO WAS LOOKING FOR A NEW TECHNOLOGY PROVIDER AS IT RECENTLY ENDED ITS DECADESLONG EQUITY PARTNERSHIP WITH GENERAL MOTORS CORP AFTER A DISPUTE OVER THE MANAGEMENT OF THE JOINT VENTURE 9304220008 930422 JAPAN SHOULD LISTEN TO REAGAN NOT CLINTON BY DANIEL GRESSEL THE IMPRESSIVE MOMENTUM OF JAPAN'S STOCK MARKET APPEARS TO BE COMING TO AN AWKWARD END THE NIKKEI LOST SOME 26 OF ITS VALUE IN THE FIRST THREE TRADING SESSIONS THIS WEEK THIS CHANGE MEANS JAPAN MAY NO LONGER BE ABLE TO POSTPONE ADOPTING POLICIES IT SHOULD HAVE ADOPTED ANYWAY A LOOSER MONETARY POLICY AND TAX CUTS THIS WEEK'S FALL MAY ONLY BE A CORRECTION OR IT MIGHT BE THE BEGINNING OF THE MORE SUBSTANTIAL SELLOFF THAT THE JAPANESE AUTHORITIES HAVE TRIED TO AVOID THEY HAD SUCCESSFULLY NAVIGATED THROUGH THE COUNTRY'S FISCAL YEAR END MARCH 31 WITHOUT A COLLAPSE OF THE STOCK MARKET SINCE BANKS AND OTHER FINANCIAL INSTITUTIONS HOLD A LARGE FRACTION OF THEIR PORTFOLIOS IN JAPANESE EQUITIES AND SINCE THEIR LOANS ON PROPERTIES ARE SUBSTANTIALLY UNDERWATER A STOCK MARKET DEBACLE WOULD HAVE EXPOSED THEM AS BANKRUPT BANK RUNS COULD HAVE ENSUED LEADING TO DEEPER RECESSION AND EVENTUALLY A LOOSER MONETARY POLICY THAT IN TURN WOULD HAVE MEANT A WEAK YEN AND PERHAPS TRADE RETALIATION FROM THE CLINTON ADMINISTRATION BECAUSE THE CURRENT MARKET SHIFT HAPPENED AFTER THE FISCAL YEAR'S END THOUGH JAPANESE BANKS NOW HAVE UNTIL SEPT 30 THE HALFYEAR MARK TO IMPROVE THEIR BALANCE SHEETS IT IS INCONCEIVABLE THAT THE US TAXPAYER WOULD HAVE COUNTENANCED THE KIND OF MARKET MANIPULATION THAT HAS GONE ON IN JAPAN OF LATE IN RECENT MONTHS JAPANESE AUTHORITIES IN ESSENCE USED GOVERNMENTGUARANTEED SAVINGS TO BUY THE STOCK MARKET AT VERY HIGH PRICE/EARNINGS RATIOS IN THE MIDDLE OF A MAJOR RECESSION IN ORDER NOT TO LOOK TOTALLY FOOLISH IMMEDIATELY THEY FORBADE THE NEW ISSUANCE OF STOCK AND USED MORAL SUASION ON MAJOR JAPANESE INSTITUTIONS NOT TO SELL THEIR STOCK RATHER THAN LOOSENING MONETARY POLICY TO MITIGATE ECONOMIC WEAKNESS THEY SPENT TAXPAYER MONEY TRYING TO CHANGE ONE OF THE SYMPTOMS OF AN OVERLY TIGHT MONETARY POLICY THEY SUCCEEDED IN HOLDING UP THE STOCK MARKET WHICH THEN RALLIED 24 FROM A LOW OF 16670 ON MARCH 4 TO 20740 ON APRIL 13 AFTER THE MARKET BECAME CONVINCED THAT THE AUTHORITIES HAD THE WHEREWITHAL TO PREVENT A FALL THIS PRICE ACTION BROUGHT IN UNDERWEIGHT FOREIGN MARKET PARTICIPANTS AND DOMESTIC MARGIN BUYERS THE NET SELLERS WERE LONGTERM HOLDERS OF JAPANESE EQUITIES THESE STOCKS ARE NOW HOT POTATOES TOSSED FROM PLAYER TO PLAYER EACH OF WHOM THINKS HE WILL SELL BEFORE THE MARKET FALLS TO A MORE REASONABLE LEVEL GOVERNMENT ECONOMISTS ARE SAYING THAT SINCE THE STOCK MARKET IS A LEADING INDICATOR OF THE ECONOMY AND THE MARKET HAS RISEN THE ECONOMY MUST BE RECOVERING THIS IS PREPOSTEROUS THE STOCK MARKET IS A LEADING INDICATOR ONLY WHEN ITS LEVEL IS THE RESULT OF THE FREE INTERPLAY OF BUYERS AND SELLERS WHOSE COLLECTIVE JUDGMENT ABOUT FUTURE EARNINGS CAN BE REFLECTED IN STOCK PRICES IN THIS CASE GOVERNMENT MANIPULATION TOUCHED OFF BOTH THE STOCK RALLY AND A BOND SELLOFF SINCE THE 1960S JAPAN'S REAL GROWTH RATE HAS SLOWED DRAMATICALLY FROM 10 IN THE 1960S 45 IN THE 1970S AND 42 IN THE 1980S TO PROBABLY 3 IN THE 1990S WHILE JAPAN WAS GROWING RAPIDLY AND BUILDING UP ITS CAPITAL STOCK INVESTMENT WAS HIGH AS WERE SAVINGS AS GROWTH HAS SLOWED DUE TO THE LEVEL OF DEVELOPMENT PROFITABLE AFTERTAX INVESTMENT OPPORTUNITIES HAVE BEEN EXHAUSTED IN ADDITION JAPAN HAD A CLASSIC OVERINVESTMENT BUSINESS CYCLE WHOSE BUBBLE BURST IN 1991 BOTH TRENDS HAVE LED TO EXCESS SAVINGS THAT ARE INVESTED AROUND THE WORLD THEY SHOW UP IN THE NATIONAL ACCOUNTS AS A TRADE SURPLUS AND ARE THE MAJOR CAUSE OF JAPAN'S TRADE IMBALANCE ON THE US SIDE JAPAN'S EXCESS SAVINGS AND THUS THE TRADE SURPLUS WILL NOT BE CURED BY TARIFFS ON MINIVANS OR BY SEMICONDUCTOR PACTS HOWEVER THE CLINTON ADMINISTRATION HAS HIT UPON ONE POLICY CHANGE THAT DOES STAND A GOOD CHANCE OF REDUCING THE TRADE DEFICIT WITH JAPAN THE HIGHER MARGINAL TAX RATES THAT MR CLINTON PROPOSES WILL MAKE THE US AN UNPROFITABLE PLACE TO INVEST INVESTMENT WILL GO DOWN RELATIVE TO SAVINGS AND THE US WILL NEED TO IMPORT LESS CAPITAL WHEREAS THE REAGAN TAX CUTS LED TO GREATER RETURNS ON INVESTMENT A CAPITAL INFLOW INTO THE US THUS A TRADE DEFICIT A STRONGER DOLLAR AND A BOOMING ECONOMY IF CLINTON'S TAX INCREASES ARE PASSED WE CAN EXPECT LOWER RETURNS ON INVESTMENT A REDUCED CAPITAL INFLOW A LOWER TRADE DEFICIT A WEAKER DOLLAR AND A WEAK ECONOMY GIVEN THE FUNDAMENTAL SLOWDOWN IN JAPAN'S ECONOMIC GROWTH RATE THE RECENT FISCAL STIMULUS PACKAGE OF 13 TRILLION YEN WILL ONLY MITIGATE THE LIKELY SHARP FALLOFF IN PRIVATESECTOR INVESTMENT AS A SHARE OF GROSS NATIONAL PRODUCT A STUDY BY TADASHI NAKAMAE OF NAKAMAE INTERNATIONAL ECONOMIC RESEARCH ESTIMATES THAT OVER THE NEXT THREE YEARS CAPITAL INVESTMENT WILL FALL TO 12 OF GNP FROM THE CURRENT 22 WHEN IT COMES TO THE SOCALLED INVESTMENT IN JAPAN'S STIMULUS PACKAGE THERE SEEMS TO BE NO DISCUSSION ABOUT THE RETURNS GENERATED BY SUCH VAST EXPENDITURES JAPAN IS SUBSTITUTING PUBLIC SPENDING WITH DUBIOUS RETURNS FOR PRIVATE INVESTMENT IF JAPAN'S BUREAUCRATS WERE SERIOUS ABOUT SIMULTANEOUSLY ADDRESSING THE TRADE IMBALANCE AND THE FALLOFF IN ECONOMIC ACTIVITY THEY WOULD REDUCE JAPAN'S EXTREMELY HIGH MARGINAL TAX RATES WHICH REACH 70 WHEN LOCAL ADDITIONS TO THE 50 NATIONAL RATE ARE INCLUDED THE EFFECTS IN JAPAN WOULD BE DRAMATIC AND SIMILAR TO WHAT THE REAGAN TAX CUTS WROUGHT HERE ECONOMIC RECOVERY A YEN THAT IS STRONGER BECAUSE OF ECONOMIC STRENGTH RATHER THAN JAWBONING AND AN ELIMINATION OF THE TRADE SURPLUS WHICH WOULD REDUCE THE CHANCE OF FOOLISH US PROTECTIONISM THE JAPANESE SHOULD BE CUTTING INTEREST RATES LETTING THE YEN DEPRECIATE AND STRENGTHEN AFTER RECOVERY BEGINS AND DRAMATICALLY LOWERING THEIR TOP MARGINAL TAX RATES INSTEAD THEY ARE WASTING TAXPAYER MONEY ON STOCKMARKET SUPPORT OPERATIONS AND ON LOW IF NOT NEGATIVE RETURN STIMULUS PACKAGES WITH THE US DESCENDING INTO MASOCHISTIC TAX HIKES AND PROTECTIONISM FOR THE LARGEST AND LEAST EFFICIENT PRODUCERS THE WORLD NEEDS JAPAN TO ACT RESPONSIBLY HIGHER INTEREST RATES AND A STRONGER YEN IN THE MIDST OF AN ECONOMIC CONTRACTION ARE QUITE DANGEROUS FOR JAPAN A TAX CUT AND MONETARY EASE ARE THE BEST CURE FOR ITS AILMENTS THEN AMERICA'S ECONOMIC NATIONALISTS MIGHT ACTUALLY HAVE SOMETHING TO WORRY ABOUT MR GRESSEL IS THE PRESIDENT OF TELEOS ASSET MANAGEMENT IN NEW YORK 9304220007 930422 DEFENDING US AIRLINES WASHINGTON THE WHITE HOUSE HAS FORMED AN INTERAGENCY WORKING GROUP ON INTERNATIONAL AVIATION AS PART OF AN EFFORT TO BETTER DEFEND THE US AIRLINE INDUSTRY'S INTERESTS OVERSEAS AS EXPECTED THE WORKING GROUP WILL INCLUDE REPRESENTATIVES FROM THE US TRADE REPRESENTATIVE'S OFFICE THE NATIONAL ECONOMIC COUNCIL AND THE TRANSPORTATION COMMERCE AND STATE DEPARTMENTS ONE OBJECTIVE WILL BE TO IMPROVE COORDINATION AMONG US OFFICIALS WHO ARE INVOLVED IN BROAD TRADE ISSUES AND THOSE WHO NEGOTIATE BILATERAL AVIATION AGREEMENTS TRANSPORTATION SECRETARY FEDERICO PENA SAID THE ADMINISTRATION MUST MAKE SURE WE'RE SPEAKING WITH ONE VOICE MR PENA TOLD A GATHERING OF AVIATION EXECUTIVES AND LOBBYISTS HE SAID ADMINISTRATION INITIATIVES TO NEGOTIATE MORE LIBERAL AVIATION AGREEMENTS HAVE BEEN ENCOUNTERING INCREASED RESISTANCE FROM FRANCE GERMANY AND OTHER TRADING PARTNERS BUT HE SAID THERE IS POTENTIAL FOR A RENEGOTIATED USBRITISH AGREEMENT THAT WOULD GIVE US AIRLINES GREATER ACCESS TO THE BRITISH MARKET 9304220006 930422 REVIEW & OUTLOOK EDITORIAL WHO IS WEBSTER HUBBELL III WE'VE ASKED ABOUT WEBSTER HUBBELL'S ROLE TWICE BEFORE SO WE'LL ASK AGAIN WHAT WAS HIS CONTRIBUTION TO THE WACORELATED EVENTS OF THE PAST THREE DAYS SOME INSIDE THE BELTWAY FIND INQUIRIES ABOUT MR HUBBELL AMUSING AS IN THE APRIL 3 WASHINGTON POST ACCOUNT DEPICTING MR HUBBELL SMILING SOFTLY LIKE A SHY CHILD IT ADDED WHEN THE JOURNAL ALLEGED FURTHER DARK DOINGS AT THE JUSTICE DEPARTMENT THE HEADLINE READ WHO IS WEBSTER HUBBELL II WE'RE BACK THIS TIME WITH COMPANY THIS IS THE TEXT OF A FASCINATING EXCHANGE BETWEEN NBC'S TOM BROKAW AND ATTORNEY GENERAL JANET RENO WHICH WAS BROADCAST ABOUT 1142 MONDAY NIGHT BROKAW ONCE THE FIRE BROKE OUT WHAT DID YOU TELL PRESIDENT CLINTON RENO I HAVEN'T TALKED TO PRESIDENT CLINTON YET BECAUSE I HAVE OTHER SIC WITH ME HAVE BEEN TALKING TO THE WHITE HOUSE WHILE I'VE BEEN TALKING WITH THE FBI AND AS I HAVE SAID THIS IS MY RESPONSIBILITY I'M ACCOUNTABLE FOR IT AND I'VE BEEN TRYING TO RESPOND TO QUESTIONS FROM YOU AND OTHERS IN THE MEDIA BROKAW WITH ALL DUE RESPECT GENERAL RENO YOU MEAN THAT THE PRESIDENT HAS NOT HAD A DIRECT CONVERSATION WITH YOU HAS NOT EXPRESSED CURIOSITY RENO THE PRESIDENT HAS EXPRESSED EXTENSIVE CURIOSITY HE HAS HAD A DIRECT CONVERSATION WITH WEBB HUBBELL WHO WAS WITH ME AS I WAS TALKING TO THE FBI BROKAW AND WHAT DID HE TELL WEBB HUBBELL RENO YOU WOULD HAVE I SHOULD SAY AS I UNDERSTAND HE WAS TALKING WITH WEBB HUBBELL BUT YOU WOULD HAVE TO CHECK AND SEE BROKAW WEBB HUBBELL DID NOT SHARE WITH YOU WHAT THE PRESIDENT WAS SAYING RENO AGAIN I HAVE BEEN TRYING TO RESPOND TO THE PEOPLE TRYING TO BE ACCOUNTABLE TO THE PEOPLE TRYING TO TAKE YOUR REQUEST AND THE REQUEST OF OTHERS FOR INFORMATION AS TO WHAT HAPPENED AND AS SOON AS I'M THROUGH THIS I'M GONNA TALK TO THE PRESIDENT 9304220005 930422 REVIEW & OUTLOOK EDITORIAL RUMBLINGS IN LA THE RODNEY KING VERDICT ISN'T THE ONLY BIG EVENT ON THE MINDS OF LOS ANGELENOS THEY JUST HELD THE FIRST ROUND OF VOTING FOR A MAYOR TO SUCCEED THE DEPARTING TOM BRADLEY AND IT LOOKS TO US AS IF THIS IS A VERY INTENSELY FOCUSED ELECTORATE RICHARD RIORDAN A 62YEAROLD SELFMADE MILLIONAIRE CAMPAIGNED AS A REPUBLICAN ON A PLATFORM OF TERM LIMITS PRIVATIZING CITY SERVICES AND CRACKING DOWN ON CRIME HE WON 33 OF THE VOTE IN TUESDAY'S ELECTION AND STANDS A GOOD CHANCE OF WINNING THE JUNE RUNOFF AGAINST LIBERAL DEMOCRAT MICHAEL WOO A CAREER POLITICIAN WHO WON ONLY 24 LESS THAN A WEEK AGO THE LAST PUBLISHED POLL PREDICTED MR WOO WOULD FINISH 12 POINTS AHEAD OF MR RIORDAN THE ACTUAL RESULT INDICATES THE POLITICS OF URBAN AMERICA MAY BE CHANGING MR RIORDAN DID WELL AMONG WHITE SUBURBANITES BUT HE ALSO MADE SURPRISING GAINS AMONG THE TWOTHIRDS OF LOS ANGELES RESIDENTS WHO ARE BLACK HISPANIC OR ASIAN MANY OF THEM ARE DISGUSTED WITH INEFFECTUAL POLITICIANS A CRUMBLING SCHOOL SYSTEM THAT MAY BE HIT BY A STRIKE NEXT MONTH HIGH CRIME RATES AND JOB FLIGHT MR RIORDAN OFFERED A TOUGH NONONSENSE PLATFORM HE SPONSORED A MEASURE TO LIMIT THE TERMS OF THE MAYOR AND CITY COUNCIL WHICH WON 67 OF THE VOTE THIS WEEK EVEN THE LOS ANGELES TIMES ENDORSED THE IDEA OF TERM LIMITS MR RIORDAN PLEDGED TO HOLD THE LINE ON TAXES AND REDUCE REGULATION THAT HINDERED ECONOMIC DEVELOPMENT HE PROPOSED TO PUT 3000 NEW POLICE OFFICERS ON THE STREET AND PAY FOR IT BY LEASING LOS ANGELES AIRPORT AND CONTRACTING OUT GARBAGE COLLECTION TO PRIVATE OPERATORS MR WOO BACKED A MEASURE THAT WOULD HAVE RAISED PROPERTY TAXES TO HIRE 1000 NEW POLICEMEN BUT IT FAILED TO WIN APPROVAL MR WOO A COUNCILMAN SERVED UP ALL THE USUAL LIBERAL NOSTRUMS ALONG WITH A SLASHING NEGATIVE CAMPAIGN AGAINST MR RIORDAN MR WOO'S MAILINGS NOTED THAT MR RIORDAN AND CONVICTED FELON MICHAEL MILKEN WERE PARTNERS IN SIX LEVERAGED BUYOUTS AND HE CLAIMED THAT MR RIORDAN WOULD TAKE HIS POLITICAL MARCHING ORDERS FROM RONALD REAGAN AND HIS ECONOMIC POLICY FROM MICHAEL MILKEN WE WONDER WHOM THOSE ADS HELPED WE SEE MORE AND MORE SIGNS THAT AS THE CRISIS OF AMERICA'S URBAN AREAS REACHES CRITICAL MASS VOTERS ARE WILLING TO TURN TO NEW KINDS OF LEADERS PHILADELPHIA'S ED RENDELL AND INDIANAPOLIS'S STEPHEN GOLDSMITH ARE BOTH MAYORS CONTRACTING OUT MANY SERVICES TO PRIVATE COMPANIES JOHN NORQUIST MILWAUKEE'S DEMOCRATIC MAYOR HAS BECOME AN ELOQUENT BACKER OF EDUCATION VOUCHERS JERSEY CITY NJ ELECTED WALL STREETER BRET SCHUNDLER AS ITS MAYOR LAST YEAR A REPUBLICAN MR SCHUNDLER IS CAMPAIGNING FOR REELECTION NEXT MONTH ON A PLATFORM THAT CALLS FOR ENTERPRISE ZONES AND FULL SCHOOL CHOICE NOT SURPRISINGLY THE LA POLITICAL ESTABLISHMENT IS ALREADY ADMONISHING MR RIORDAN TO BROADEN HIS COALITION MEANING ABANDON HIS CONSERVATISM WHY SHOULD HE IT SEEMS TO US THAT MAYBE SOMEONE SHOULD TELL THE LIBERAL MICHAEL WOO TO BROADEN HIS BASE A BIG SHIFT MAY BE UNDER WAY IN LOS ANGELES AND AT THE MOMENT A REPUBLICAN MAYORAL CANDIDATE APPEARS TO HAVE TAPPED INTO IT 9304220004 930422 ABREAST OF THE MARKET INDUSTRIALS EASE BUT AMR LEADS SHARES OF AIRLINES BROADLY HIGHER BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCK PRICES SLIPPED FOR A THIRD STRAIGHT DAY BUT ENCOURAGING NEWS FROM THE AIRLINE GROUP MODERATED THE LOSSES AMR CORP THE PARENT OF AMERICAN AIRLINES POSTED A NARROWERTHANEXPECTED LOSS FOR THE FIRST QUARTER IT SURGED 6 TO 71 1/4 IGNITING A BROADBASED RALLY IN THE GROUP THE DOW JONES INDUSTRIAL AVERAGE SLIPPED 405 OR 012 TO 343944 FOLLOWING A 24POINT DECLINE TUESDAY AND A 12POINT DROP MONDAY BUT THE DOW JONES TRANSPORTATION AVERAGE SPRANG BACK FROM TWO DAYS OF LOSSES JUMPING 2075 OR 126 TO 166576 OVERALL THOUGH ANALYSTS SAID INVESTORS REMAIN NERVOUS ABOUT THE MARKET AND THE CONTINUING FLOW OF EARNINGS REPORTS ALTHOUGH THERE IS STILL PLENTY OF MONEY AROUND TO INVEST NEW COMMITMENTS AREN'T BEING MADE SAID JOSEPH BATTIPAGLIA CHIEF INVESTMENT STRATEGIST AT GRUNTAL INSTEAD INVESTORS SPENT THE DAY SHIFTING FUNDS AMONG STOCK GROUPS TRADERS SAID THESE CROSSCURRENTS LEFT PRICES BOUNCING HIGHER AND THEN LOWER INTRADAY AT ITS WORST LEVEL THE INDUSTRIAL AVERAGE WAS DOWN AROUND 20 POINTS AT ITS PEAK JUST 30 MINUTES BEFORE THE CLOSE THE AVERAGE WAS UP ABOUT 10 THE STANDARD & POOR'S 500 STOCK INDEX LOST 147 OR 033 TO 44363 WHILE THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX EASED 065 OR 026 TO 24507 HUGH JOHNSON MARKET STRATEGIST AT FIRST ALBANY SAID THE MARKET INDEXES MIRRORED THE STRENGTH OF THE SESSION'S CORPORATE EARNINGS REPORTS THE EARNINGS ARE COMING IN FAIRLY CLOSE TO OR SLIGHTLY BELOW EXPECTATIONS HE SAID ANALYSTS SAID THE RECENT WEAKNESS IN THE US DOLLAR IS ALSO TROUBLING SOME STOCK INVESTORS ALTHOUGH THE DOLLAR WAS LITTLE CHANGED YESTERDAY AGAINST MAJOR CURRENCIES IT HAS TUMBLED TO POSTWORLD WAR II LOWS AGAINST THE YEN IN RECENT SESSIONS MR JOHNSON SAID WEAKNESS IN THE DOLLAR COULD SPARK INFLATION AS THE COST OF IMPORTED GOODS RISES AMR SHARES JUMPED AFTER THE COMPANY REPORTED A FIRSTQUARTER LOSS OF 43 CENTS A SHARE THAT COMPARED WITH ITS YEARAGO EARNINGS FROM OPERATIONS OF 10 CENTS BUT WAS BETTER THAN THE 90 CENTSASHARE DEFICIT THAT ZACKS INVESTMENT RESEARCH INC SAID ANALYSTS HAD FORECAST OTHER AIRLINE ISSUES ROCKETED UAL THE PARENT OF UNITED AIRLINES JUMPED 9 5/8 TO 149 5/8 USAIR GAINED 1 1/2 TO 24 1/4 AND DELTA AIR LINES ADVANCED 2 7/8 TO 59 3/8 SOUTHWEST AIRLINES THOUGH WAS UNCHANGED AT 39 AFTER EARNINGS NEWS IT RECORDED FIRSTQUARTER EARNINGS FROM OPERATIONS OF 24 CENTS A SHARE UP FROM AN OPERATING PROFIT OF 15 CENTS LAST YEAR JOSTENS TUMBLED 7 1/8 TO 19 THE COMPANY SAID ITS EARNINGS FELL TO 12 CENTS A SHARE IN ITS THIRD QUARTER FROM 22 CENTS A YEAR EARLIER THE MINNEAPOLIS PRODUCER OF SCHOOL RINGS AND YEARBOOKS PREDICTED ITS PROFIT FOR THE FISCAL YEAR ENDING IN JUNE WILL DECLINE TO 1 A SHARE FROM 150 LAST YEAR FUQUA INDUSTRIES DROPPED 1 TO 12 1/4 AFTER SAYING IT EXPECTS A LOSS OF 44 CENTS TO 49 CENTS A SHARE IN THE FIRST QUARTER INCLUDING A CHARGE OF 17 CENTS TIED TO AN ACCOUNTING CHANGE A YEAR EARLIER THE ATLANTA LAWN AND GARDEN EQUIPMENT MAKER HAD A DEFICIT OF 11 CENTS HAEMONETICS DROPPED 1 3/4 TO 18 3/8 EVEN THOUGH THE MAKER OF BLOODPROCESSING SYSTEMS POSTED ONTARGET EARNINGS OF 24 CENTS A SHARE UP FROM 19 CENTS A YEAR AGO THE STOCK SURGED 3 1/8 ON TUESDAY COMPAQ COMPUTER DROPPED 1 7/8 TO 49 1/4 DESPITE A STRONGERTHANEXPECTED EARNINGS REPORT THE HOUSTONBASED COMPANY HAD A PROFIT OF 123 A SHARE IN THE FIRST QUARTER UP FROM 53 CENTS LAST YEAR ITS GROSS PROFIT MARGIN THOUGH SLUMPED TO 23 IN THE QUARTER FROM 335 A YEAR AGO WASHINGTON ENERGY DROPPED 2 3/4 TO 22 3/4 STATE REGULATORS IN WASHINGTON RECOMMENDED A 222 MILLIONAYEAR RATE CUT AT THE SEATTLE COMPANY'S WASHINGTON NATURAL GAS UNIT THE UTILITY HAD SOUGHT A 344 MILLIONAYEAR RATE INCREASE EQUIFAX DECLINED 1 3/4 TO 18 1/8 AFTER CALIFORNIA LOTTERY OFFICIALS TERMINATED A 120 MILLION FIVEYEAR CONTRACT WITH THE ATLANTABASED COMPANY'S HIGH INTEGRITY SYSTEMS UNIT THE STATE WAS DISSATISFIED WITH AN AUTOMATED LOTTERY TICKET SYSTEM THAT THE COMPANY DELIVERED LAST WEEK POLAROID CLIMBED 3 3/8 TO 32 3/8 ANALYSTS AT MORGAN STANLEY AND WERTHEIM SCHRODER UPGRADED RATINGS ON THE STOCK ALTHOUGH THE CAMBRIDGE MASS COMPANY REPORTED A FIRSTQUARTER LOSS ON TUESDAY IT DISCLOSED BETTERTHANEXPECTED INTERNATIONAL SALES REVCO INCREASED 1 TO 10 3/4 AFTER THE TWINSBURG OHIO DRUGSTORE COMPANY SAID ITS FOURTHQUARTER AND FULLYEAR EARNINGS SHOULD BE HIGHER THAN MOST ANALYSTS HAVE FORECAST AN INCREASE IN ITS MANAGEDCARE DRUG PRESCRIPTION BUSINESS AND A LATE FLU SEASON HAVE BOOSTED RESULTS FOR THE QUARTER WHICH ENDS IN MAY BRISTOLMYERS SQUIBB FELL 1 TO 61 AFTER IT REPORTED SLIGHTLY LOWERTHANEXPECTED FIRSTQUARTER EARNINGS IT HAD A PROFIT OF 111 A SHARE IN THE PERIOD COMPARED WITH EARNINGS FROM CONTINUING OPERATIONS OF 103 A YEAR AGO BUT BELOW THE 113 MEAN ESTIMATE REPORTED BY IBES THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM GENERAL INSTRUMENT ROSE 2 7/8 TO 35 1/2 THE MAKER OF ELECTRONIC EQUIPMENT EARNED 19 CENTS A SHARE IN THE FIRST QUARTER REVERSING A YEAREARLIER LOSS OF 78 CENTS 9304220003 930422 BUSINESS BRIEF TRANSAMERICA CORP FIRSTPERIOD EARNINGS ROSE 98 LIFE INSURANCE CITED CITING STRONG PERFORMANCE IN ITS LIFE INSURANCE REAL ESTATE TAX SERVICE AND LEASING OPERATIONS TRANSAMERICA CORP SAID FIRSTQUARTER EARNINGS ROSE 98 FOR THE QUARTER ENDED MARCH 31 THE SAN FRANCISCO COMPANY POSTED NET OF 918 MILLION OR 108 A SHARE COMPARED WITH 836 MILLION OR 104 A SHARE A YEAR AGO INCOME FROM CONTINUING OPERATIONS EXCLUDING INVESTMENT GAINS WAS 89 MILLION OR 105 A SHARE UP 25 FROM YEARAGO EARNINGS OF 711 MILLION OR 88 CENTS A SHARE THE MOST RECENT QUARTER INCLUDED 28 MILLION OR THREE CENTS A SHARE IN INVESTMENT GAINS THE YEARAGO QUARTER INCLUDED 125 MILLION OR 16 CENTS A SHARE FROM THE COMPANY'S DISCONTINUED PROPERTY AND CASUALTY INSURANCE OPERATIONS EARLIER THIS WEEK TRANSAMERICA SHED THOSE OPERATIONS THROUGH AN INITIAL PUBLIC OFFERING THAT RAISED 1 BILLION TRANSAMERICA SOLD 304 MILLION OF THE 442 MILLION SHARES OFFERED REAPING 688 MILLION FOR THE COMPANY TRANSAMERICA HOLDS A 26 STAKE IN THE NEW COMPANY TIG HOLDINGS INC 9304220002 930422 AT&T 1STPERIOD LOSS IS 564 BILLION DUE TO CHARGE BUT OPERATING PROFIT ROSE BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON AMERICAN TELEPHONE & TELEGRAPH CO REPORTED A FIRSTQUARTER LOSS OF 564 BILLION BECAUSE OF ACCOUNTING CHARGES BUT OPERATING PROFIT ROSE NEARLY 13 DESPITE FIERCE COMPETITION IN THE LONGDISTANCE MARKET EXCLUDING THE CHARGES WHICH CAUSED A LOSS OF 419 A SHARE AT&T SAID EARNINGS WOULD HAVE BEEN 996 MILLION OR 74 CENTS A SHARE A YEAR EARLIER THE COMPANY HAD NET INCOME OF 883 MILLION OR 67 CENTS A SHARE THE CHARGES FOR RETIREE HEALTH BENEFITS AND A CHANGE IN ACCOUNTING FOR INCOME TAXES REDUCED EARNINGS BY 664 BILLION IN THE LATEST PERIOD REVENUE ROSE 22 TO 1572 BILLION FROM 1538 BILLION OPERATING INCOME INCREASED TO 163 BILLION MOSTLY FROM COSTCUTTING AND REVENUE EXPANSION AT AT&T'S LONGDISTANCE AND FINANCIAL SERVICES UNITS IT WAS A GOOD QUARTER AND WE HAVE CONFIDENCE THAT OUR EARNINGS MOMENTUM CAN BE MAINTAINED FOR THE REST OF THE YEAR ROBERT E ALLEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID AT THE COMPANY'S ANNUAL MEETING HERE YESTERDAY THE COMPANY'S SHARES SLIPPED 50 CENTS TO CLOSE AT 57375 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING BUT ANALYSTS WERE GENERALLY PLEASED WITH THE RESULTS WHICH THEY EXPECTED I'VE REITERATED MY FAVORABLE RATING SAID DANIEL REINGOLD OF MERRILL LYNCH & CO THE STOCK COULD TRADE IN THE MID60S OVER THE NEXT SIX MONTHS MR REINGOLD SAID AT&T'S LONGDISTANCE VOLUME GROWTH INDICATED THAT INDUSTRY TRAFFIC HAS BEGUN TO EXPAND FOR THE FIRST TIME SINCE THE RECESSION STARTED THERE WILL BE ENOUGH VOLUME FOR EVERYBODY HE SAID AND THE FEES LOCAL PHONE COMPANIES CHARGE LONGDISTANCE CARRIERS FOR COMPLETING CALLS CONTINUE TO DROP AT&T'S PAYMENTS FELL BY 111 MILLION IN THE QUARTER AT&T'S LONGDISTANCE REVENUE GREW BY 1 TO 997 BILLION IN THE QUARTER WITH TRAFFIC VOLUMES GROWING 5 YEARTOYEAR AND 3 FROM THE FOURTH QUARTER OF 1992 LONGDISTANCE GROSS MARGINS ROSE 2 TO 37 IN THE QUARTER MR ALLEN ACKNOWLEDGED THAT THE FIERCE MARKETING WAR WITH MCI COMMUNICATIONS CORP AND SPRINT CORP REMAINS AT A HIGH PEAK MAKING IT UNLIKELY THAT AT&T WILL BE ABLE TO TAKE BACK MARKET SHARE ANYTIME SOON SPRINT POSTED STRONG LONGDISTANCE OPERATING RESULTS FOR THE FIRST QUARTER ON TUESDAY AND ANALYSTS EXPECT MCI TO ANNOUNCE EVEN BIGGER GAINS TODAY AT&T'S SHARE OF THE LONGDISTANCE MARKET IS CURRENTLY BETWEEN 60 AND 65 WE'VE GAINED IN SOME SEGMENTS OF THE MARKET AND LOST IN OTHERS MR ALLEN CONCEDED OVERALL AT&T'S HOLDING FLAT HE SAID BUT MR ALLEN MADE IT CLEAR THAT AT&T'S FUTURE DEPENDS ON MORE THAN JUST THE LONGDISTANCE MARKET HE AND AT&T MANAGERS OUTLINED FOR SHAREHOLDERS HOW AT&T PLANS TO DOMINATE THE CONVERGENCE OF COMMUNICATIONS COMPUTERS AND VIDEO TECHNOLOGIES WHAT EXPERTS CALL MULTIMEDIA THE COMPANY BASED IN NEW YORK PLANS TO LAUNCH NEXT WEEK A GIANT TELEVISION AD CAMPAIGN LAYING OUT THIS VISION RESULTS AT AT&T'S COMPUTER UNIT NCR CONTINUED TO MIRROR GENERAL COMPUTER INDUSTRY SLUGGISHNESS NCR WHICH AT&T ACQUIRED IN 1991 REPORTED A 20 MILLION OPERATING LOSS REFLECTING A 50 MILLION RESTRUCTURING CHARGE COMPARED WITH A 46 MILLION PROFIT A YEAR AGO EXCLUDING THE CHARGES NCR'S OPERATING INCOME FELL 35 TO 30 MILLION REVENUE FELL 34 TO 148 BILLION DUE MAINLY TO SOFT SALES IN EUROPE AND THE FAR EAST MR ALLEN SAID AT&T RECENTLY NAMED A NEW CHIEF EXECUTIVE JERRE STEAD AT NCR FOLLOWING THE RETIREMENT OF GILBERT WILLIAMSON REVENUE FROM COMMUNICATIONS PRODUCTS INCLUDING SALES OF PHONES TO CONSUMERS WAS ESSENTIALLY FLAT IN THE QUARTER AT 633 MILLION AT&T BLAMED THE SHOWING ON COMPETITION PARTICULARLY IN THE CORDLESS PHONE MARKET HOWEVER NETWORK EQUIPMENT SALES CONTINUED A STRONG SHOWING IN THE FACE OF STIFF COMPETITION AND THE WEAK ECONOMY REVENUE ROSE 45 TO 175 BILLION FINANCIAL SERVICES AND LEASING REVENUE INCLUDING AT&T'S UNIVERSAL CREDIT CARD GREW BY 40 TO 570 MILLION IN THE QUARTER BUT COSTS OF PROVIDING THESE SERVICES ALSO GREW RISING 325 TO 377 MILLION MR ALLEN SAID AT&T WAS EXPECTED TO ELECT CARLA HILLS CHAIRMAN OF HILLS & CO INTERNATIONAL CONSULTANTS AND THE FORMER US TRADE REPRESENTATIVE TO ITS BOARD AT ITS MAY 19 MEETING STOCKHOLDERS YESTERDAY VOTED DOWN BY WIDE MARGINS SEVERAL PROPOSALS INCLUDING ONE ASKING FOR ADDITIONAL DETAILS ON EXECUTIVE COMPENSATION IN FUTURE PROXY STATEMENTS A CUT IN THE NUMBER OF DIRECTORS AND UNION REPRESENTATION ON THE BOARD 9304220001 930422 US PREPARES MILD SANCTIONS AGAINST THE EC MOVE SIGNALS STRONG FOCUS ON RESOLVING BARRIERS IN TRADE WITH JAPAN BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US IS PREPARING TO LEVY TOKEN SANCTIONS AGAINST THE EUROPEAN COMMUNITY AS PART OF A PLAN TO SETTLE A GOVERNMENTPURCHASING DISPUTE AND MOVE ON TO WEIGHTIER TRADE ISSUES THE UNEXPECTEDLY MILD RETALIATION HIGHLIGHTS THE CLINTON ADMINISTRATION'S MOVE AWAY FROM A GUNSBLAZING APPROACH TO ALL TRADE DISPUTES TOWARD A FOCUSED ASSAULT ON JAPANESE TRADE BARRIERS WE HAVE BOUGHT ON TO THE EUROPEAN STRATEGY THAT THE US AND EUROPEAN COMMUNITY COULD HAVE A DEMARCHE ON JAPANESE PRACTICES SAID GARY HUFBAUER A TRADE ANALYST AT THE INSTITUTE FOR INTERNATIONAL ECONOMICS UNDER REPUBLICAN ADMINISTRATIONS WE WERE ALWAYS RELUCTANT TO BE SEEN AS GANGING UP ON THE JAPANESE THE US AND EC ARE NEGOTIATING A WIDERANGING PACKAGE OF TARIFF CUTS AS PART OF AN EFFORT TO CONCLUDE A WORLD TRADE PACT AND STIFF SANCTIONS WOULD HAVE UNDERMINED THOSE EFFORTS ONCE THE US AND EC STRIKE A DEAL NEGOTIATORS HAVE SAID THEY PLAN TO JOINTLY PRESS JAPAN TO COME UP WITH TRADE CONCESSIONS AT THE SAME TIME PRESIDENT CLINTON IS URGING JAPAN TO LOWER IMPORT BARRIERS AS PART OF A NEW TRADE AGENDA IN THE GOVERNMENTPROCUREMENT TALKS US TRADE REPRESENTATIVE MICKEY KANTOR SAID THE TWO SIDES HAD RESOLVED ONE DISPUTE OVER PURCHASES OF POWERGENERATING EQUIPMENT BUT FAILED TO RESOLVE A SIMILAR DISPUTE OVER TELECOMMUNICATIONS EQUIPMENT THE DISCORD WAS TRIGGERED IN JANUARY WHEN THE EC ADOPTED BUY EUROPE PROCUREMENT RULES CONCERNING BOTH KINDS OF EQUIPMENT UNLESS THE RULES WERE REMOVED MR KANTOR THREATENED IN FEBRUARY THE US WOULD IMPOSE AN ESCALATING SERIES OF SANCTIONS YESTERDAY MR KANTOR DECLARED SUCCESS IN THE POWERGENERATING ARENA WHICH COULD OPEN UP A 20 BILLION EC MARKET TO GENERAL ELECTRIC CO AND OTHER US MANUFACTURERS UNDER THE AGREEMENT THE EC SAID IT WOULD DROP BUY EUROPE PROVISIONS WHILE THE US SAID IT WOULD DROP BUY AMERICA PROVISIONS GOVERNING PURCHASES BY THE TENNESSEE VALLEY AUTHORITY AND FIVE FEDERAL POWER ADMINISTRATIONS THE ACCORD WILL TAKE EFFECT ONCE IT IS APPROVED BY THE EC'S MEMBER STATES IN ADDITION THE US AND EC SAID THEY WOULD LIBERALIZE GOVERNMENT PURCHASES OF A VARIETY OF SERVICES BY RUNNING THOSE PROCUREMENTS ACCORDING TO BIDDING RULES SET BY THE WORLD TRADE BODY KNOWN AS THE GENERAL AGREEMENT ON TARIFFS AND TRADE GATT PROCUREMENT RULES CURRENTLY COVER A MULTITUDE OF MANUFACTURED GOODS BUT NOT SERVICES THE SERVICES AGREEMENT WOULD APPLY AT FIRST ONLY TO COMPANIES FROM THE US AND EC THE TWO SIDES SAID THEY WOULD TRY TO RECRUIT OTHER COUNTRIES TO MAKE SIMILAR COMMITMENTS THIS IS AN IMPORTANT MOMENTUMCREATING EVENT SAID MR KANTOR HOWEVER THE TWO SIDES COULDN'T COME TO AN AGREEMENT ON TELECOMMUNICATIONS EQUIPMENT AND MR KANTOR SAID THE US WOULD IMPOSE SANCTIONS WHILE THE EC AND US CONTINUE TALKS HOWEVER THE VALUE OF THOSE SANCTIONS WILL PROBABLY BE SUBSTANTIALLY LESS THAN 50 MILLION A SLAP ON THE WRIST MR HUFBAUER CALLED IT IN FEBRUARY THE US HAD THREATENED TO BLOCK EUROPEAN COMPANIES FROM OBTAINING FEDERAL CONTRACTS WITH A VALUE OF ABOUT 50 MILLION AS A FIRST STEP IN RETALIATION YESTERDAY MR KANTOR SAID THE SANCTIONS HAVE YET TO BE DETERMINED AND THAT THEIR SCOPE WOULD TAKE ACCOUNT OF THE POWERGENERATION DEAL ALTHOUGH HE DIDN'T PROVIDE FIGURES OR A TIMETABLE HE ALSO SAID THE US WASN'T CONSIDERING ANY ADDITIONAL RETALIATION AMERICAN TELEPHONE & TELEGRAPH CO WHICH HAD HOPED FOR MORE PROGRESS IN TELECOMMUNICATIONS EXPRESSED REGRET THAT THESE NEGOTIATIONS WERE STALLED BUT RANDALL TOBIAS AT&T'S VICE CHAIRMAN SAID HE REMAINED HOPEFUL THAT IF THESE SANCTIONS WON'T GET IT DONE THE US WILL FIGURE OUT SOMETHING ELSE A SENIOR US TRADE OFFICIAL SAID THE US INTENDS TO KEEP NEGOTIATING ON TELECOMMUNICATIONS AS FOR NOW AT&T IS NO WORSE OFF THAN BEFORE THE EXPECTED MODEST SANCTIONS ALONG WITH THE PARTIAL SETTLEMENT PROMPTED SIR LEON BRITTAN THE EC'S TOP NEGOTIATOR TO DECLARE A BREAKTHROUGH BUT NOT A FULL SOLUTION SIR LEON TOLD A PRESS CONFERENCE IN STRASBOURG FRANCE WE HAVE WITHDRAWN FROM WHAT COULD HAVE BEEN THE BRINK OF A TRADE WAR US AND EC OFFICIALS SAID THAT OUTCOME WAS FAR FROM CERTAIN ON TUESDAY WHEN SIR LEON AND MR KANTOR ENDED TWO DAYS OF TALKS AFTER SIR LEON JETTED TO EUROPE THE TWO NEGOTIATORS SPOKE BY PHONE THREE TIMES YESTERDAY AND DECIDED TO SPLIT THE PROCUREMENT ISSUE INTO TWO PARTS THAT CLEARED THE WAY FOR A RESOLUTION OF THE POWERGENERATION ISSUE AND HELPED THE TWO MOVE ON TO BROADER TRADE CONCERNS YESTERDAY'S ANNOUNCEMENT OF SANCTIONS AS MILD AS THEY WERE WAS POPULAR ON CAPITOL HILL WHERE MR CLINTON IS LOOKING FOR SUPPORT ON SEVERAL TRADE ISSUES INCLUDING THE CONTROVERSIAL NORTH AMERICAN FREE TRADE AGREEMENT MICKEY KANTOR SHOWED THE WORLD TODAY THAT WHEN IT COMES TO TRADE THE CLINTON ADMINISTRATION IS NOT A PAPER TIGER SAID SEN MAX BAUCUS THE MONTANA DEMOCRAT WHO CHAIRS THE SENATE FINANCE COMMITTEE'S TRADE PANEL BUT EC OFFICIALS PRIVATELY EXPRESSED THE OPPOSITE HOPE THAT TOUGH US RHETORIC ON SUCH ISSUES AS STEEL AND SUBSIDIES TO EUROPE'S AIRBUS INDUSTRIE CONSORTIUM IS AIMED AT SATISFYING DOMESTIC LOBBIES WHILE RELATIVELY BENIGN ACTIONS ALLOW WORLD TRADE TALKS TO PROGRESS THE RESOLUTION OF THE GATT ROUND IS OF OVERRIDING IMPORTANCE SIR LEON SAID JULIE WOLF IN BRUSSELS CONTRIBUTED TO THIS ARTICLE 9304220140 930319 REVIEW & OUTLOOK EDITORIAL ON CREDULITY FOR MORE THAN A YEAR NOW WE'VE BEEN FOLLOWING THE CAMPAIGN ASSERTING THAT WE VICTIMIZED FORMER NEW YORK TIMES CORRESPONDENT RAYMOND BONNER WE HELD OUR PEACE AS THIS CHARGE MOVED FROM ARYEH NEIER IN THE NATION TO SYDNEY SCHANBERG IN NEWSDAY TO ANTHONY LEWIS IN THE TIMES TO NATIONAL PUBLIC RADIO TO THE COLUMBIA JOURNALISM REVIEW TO CBS'S 60 MINUTES OUR PATIENCE BROKE WHEN THE TIMES ITSELF JOINED IN EDITORIALLY THE ISSUE CONCERNS MR BONNER'S REPORTING ON EL SALVADOR IN 1981 AND 1982 AND CAME TO A HEAD OVER HIS REPORT OF THE TRAGEDY IN THE REBELHELD VILLAGE OF EL MOZOTE IT WAS CLEAR ENOUGH AT THE TIME THAT SOMETHING AWFUL HAD HAPPENED THERE IT MAY VERY WELL HAVE BEEN A MY LAI BY GOVERNMENT FORCES AS A UNSPONSORED TRUTH COMMISSION HAS ASSERTED THE EXCAVATION OF CHILDREN'S BONES IN MOZOTE IS SUPPOSED TO VINDICATE MR BONNER AND DISCREDIT WHAT WE SAID OR AS THE TIMES PUT IT SOME AMERICAN EDITORIALISTS WHO ATTACKED THE REPORTERS AS CREDULOUS WERE THEMSELVES DUPED ABOUT THIS WE WOULD LIKE TO MAKE SEVERAL THINGS CLEAR IN THE FIRST PLACE OUR EDITORIAL THE MEDIA'S WAR FEBRUARY 19 1982 NEVER DENIED THAT THERE WAS A MASSACRE AT EL MOZOTE RATHER WE SAID REALISTICALLY NEITHER THE PRESS NOR THE STATE DEPARTMENT HAS THE POWER TO ESTABLISH CONCLUSIVELY WHAT HAPPENED AT MOZOTE IN DECEMBER WE ALSO TOOK NO POSITION ON THE OFFICIAL HUMAN RIGHTS CERTIFICATIONS REQUIRED BY LAWS CONGRESS PASSED TO DUCK RESPONSIBILITY FOR EITHER ENDING OR CONTINUING US SUPPORT OF THE ANTIGUERRILLA EFFORT IN THE SECOND PLACE WE DID NOT CRITICIZE REPORTERS PLURAL WE OFFERED NOT ONE WORD OF CRITICISM OF ALMA GUILLERMOPRIETO OF THE WASHINGTON POST INDEED WE HELD HER REPORTS OF THE SAME STORY AS A MODEL OF PROPER REPORTING MISS GUILLERMOPRIETO TOOK PAINS TO SAY THAT REPORTERS HAD BEEN TAKEN TO TOUR' THE SITE BY GUERRILLAS WITH THE PURPOSE OF SHOWING THEIR CONTROL AND PROVIDING EVIDENCE OF THE MASSACRE IN OTHER WORDS WHATEVER THE MIXTURE OF TRUTH AND FABRICATION THIS WAS A PROPAGANDA EXERCISE IN THE THIRD PLACE WE DID NOT FIRE MR BONNER IN THE FIRST PLACE THE NEW YORK TIMES DID OR MORE PRECISELY AFTER THENMANAGING EDITOR AM ROSENTHAL UNDERTOOK HIS OWN REPORTING VISIT TO SALVADOR IT PULLED MR BONNER OFF THE BEAT AND BACK TO NEW YORK WHERE HE LEFT THE PAPER IF THE TIMES THINKS MR BONNER HAS BEEN VINDICATED IT SHOULD STOP CARPING AT US AND REHIRE HIM FORTHWITH BEFORE SECONDGUESSING MR ROSENTHAL THOUGH CURRENT TIMES EDITORS MIGHT WANT TO TAKE A LOOK AT MR BONNER'S INTERVIEW WITH SCOTT SIMON ON NATIONAL PUBLIC RADIO LAST NOVEMBER 14 WE OFFER THE FOLLOWING EXCERPT FOR THOSE WHO MAY WANT TO MAKE THEIR OWN JUDGMENTS ABOUT CREDULITY SIMON DO YOU DO YOU FEEL ANY KIND OF SENSE OF OF JUSTIFICATION DO DOES THE TERRIBLE LOSS OF THE TIME COME BACK TO YOU BONNER YOU KNOW SOMETHING ELSE HAS HAPPENED IN THE LAST COUPLE OF WEEKS I'VE GOTTEN ALL THESE CALLS AND LETTERS ABOUT YOU MUST FEEL VINDICATED' YES I DO FEEL PARTIALLY VINDICATED BUT DO YOU KNOW WHAT VINDICATION IS REALLY IMPORTANT IT IS NOW WITH ALGER HISS NOW THAT'S A VINDICATION THAT REALLY MEANS SOMETHING BONNER SURE I TOOK MY LUMPS BUT LOOK WE'RE IN THIS BUSINESS WE GIVE LUMPS AND WE TAKE OUR LUMPS IF THERE'S LESSONS OUT OF THIS IT'S THERE'S GOT TO BE LIMITS TO WHICH WE GO WHEN WE'RE FIGHTING A PERCEIVED ENEMY NOW WITH THE COLD WAR OVER COMMUNISM ISN'T THE ENEMY ANYMORE WHAT'S THE ENEMY NEXT ENEMY GOING TO BE IS IT ISLAMIC FUNDAMENTALISM IS THAT THE NEXT ISM' THAT WE'RE GOING TO WORRY ABOUT AND ARE REPORTERS WHO WRITE FAVORABLY THAT OR TRY TO PUT IT IN SOME KIND OF CONTEXT ARE THEY GOING TO BE SMEARED ARE PETER ARNETTS WHO TRIED TO DO THEIR JOBS BY STAYING IN BAGHDAD I MEAN THE REPORTERS OUT THERE WHO ARE SENDING BACK THE MESSAGE THAT WE DON'T WANT TO HEAR WE HAVE TO BE CAREFUL BEFORE WE LET OUR IDEOLOGICAL CRUSADES AND THAT'S WHAT IT WAS AGAINST COMMUNISM WHAT THEY DID TO ALGER HISS AND THE WAR WAS STILL BEING FOUGHT OF COURSE IN THE 1980S SIMON RAY THANK YOU VERY MUCH FOR SPEAKING WITH US SEE RELATED LETTER LETTERS TO THE EDITOR LET'S SET THE RECORD STRAIGHT WSJ APRIL 6 1993 SEE RELATED LETTERS LETTERS TO THE EDITOR SALVADOR AND THE BONNER MYSTERY WSJ APRIL 22 1993 9303190083 9304070137 9304210188 930421 EXECUTIVE PAY A SPECIAL REPORT HIGHER PROFITS FATTEN CEO BONUSES BUT NEW PAY PACKAGES COME WITH MORE STRINGS ATTACHED BY JOANN S LUBLIN IN PANELED CORPORATE BOARDROOMS ACROSS AMERICA IT'S NO LONGER BUSINESS AS USUAL WHEN DIRECTORS GATHER AROUND LONG POLISHED TABLES TO SET THE PAY OF THEIR CHIEF EXECUTIVE OFFICER INSTEAD MORE BOARDS ARE LINKING A CHIEF EXECUTIVE'S REWARD MORE CLOSELY TO SHAREHOLDERS' REWARDS BY SHRINKING SALARY RAISES CURBING GIVEAWAY DEALS AND TYING STRINGS AROUND POTENTIALLY LUCRATIVE STOCK PACKAGES YOU ARE GOING TO SEE MORE CEO COMPENSATION BASED ON RISK AND BASED ON OWNERSHIP IN THE ORGANIZATION PREDICTS ALFRED A PIERGALLINI CHAIRMAN AND CHIEF EXECUTIVE OF GERBER PRODUCTS CO CHIEF EXECUTIVES SHOULD BE IN THE SAME CANOE AS INVESTORS HE SAYS THE COMPENSATION OVERHAUL REFLECTS A CONFLUENCE OF EVENTS POPULAR PROTESTS ABOUT EXCESSIVE PAY NEW PAYDISCLOSURE RULES FOR PROXY STATEMENTS AND A POSSIBLE FEDERAL CAP ON CORPORATIONS' DEDUCTABILITY OF EXECUTIVE COMPENSATION UNLIKE PAST RESHAPINGS OF CHIEF EXECUTIVE PAY THE LATEST APPROACH WILL MAKE IT HARDER FOR CORPORATE CHIEFS TO REAP HUGE WINDFALLS LATER ON THIS IS A WATERSHED YEAR DECLARES IRA KAY WHO RUNS HAY GROUP'S EXECUTIVECOMPENSATION PRACTICE FROM THE CONSULTING FIRM'S JERSEY CITY NJ OFFICE THE NEW SYSTEM HOWEVER MEANS ONLY THAT BIGGER PAY PACKAGES WILL BE HARDER TO COME BY IT DOESN'T MEAN THE END OF BIG PAY FOR PROOF OF THAT JUST LOOK AT THE LATEST NUMBERS LAST YEAR'S STRONG 228 REBOUND IN PROFITS AT SURVEYED COMPANIES RESULTED IN GENEROUS ANNUAL BONUSES FOR NUMEROUS CORPORATE LEADERS AS A RESULT CHIEF EXECUTIVES' SALARIES AND BONUSES CLIMBED 81 IN 1992 UP SHARPLY FROM 39 IN 1991 AND THE FASTEST PACE SINCE 1988 CONCLUDED THE SURVEY CONDUCTED BY NEW YORK CONSULTANTS WILLIAM M MERCER INC FOR THE WALL STREET JOURNAL MERCER ANALYZED PROXY STATEMENTS FROM 350 OF THE NATION'S BIGGEST BUSINESSES THE MEDIAN CHIEF EXECUTIVE SALARY AND BONUS IN ITS 1992 SAMPLE WAS 1095000 FAR MORE SENIOR EXECUTIVES RECEIVE ANNUAL INCENTIVE PAYMENTS THAN DO THEIR WHITECOLLAR SUBORDINATES LITTLE WONDER THEN THAT THE RATE OF INCREASE IN CHIEF EXECUTIVES' CASH PAY ECLIPSED THAT OF WHITECOLLAR EMPLOYEES IN GENERAL PAY OF NONUNION SALARIED EMPLOYES INCREASED 49 IN 1992 DOWN SLIGHTLY FROM A GAIN OF 52 IN 1991 A NUMBER OF CHIEF EXECUTIVES RECEIVED NO RAISE IN 1992 USUALLY BECAUSE PROFITS SLUMPED OR BOARDS REPLACED CASH WITH STOCK AS PART OF A RESTRUCTURED PAY PACKAGE THAT'S ANOTHER SIGNIFICANT CHANGE FROM PREVIOUS YEARS EXECUTIVE STOCK COMPENSATION HAS HISTORICALLY BEEN AN ADDITION RATHER THAN A SUBSTITUTE THE 61 COMPANIES THAT SKIPPED BASESALARY INCREASES FOR THEIR CHIEF EXECUTIVE INCLUDE INTERNATIONAL BUSINESS MACHINES CORP CHAMPION INTERNATIONAL CO AND BOISE CASCADE CORP IN 1991 47 COMPANIES OMITTED BASESALARY INCREASES BOARDS ARE EXTREMELY CONSCIOUS OF WHAT THEY ARE PAYING A CEO SAYS L DENNIS KOZLOWSKI CHAIRMAN AND CHIEF EXECUTIVE OF TYCO LABORATORIES INC A DIVERSIFIED MANUFACTURER OF INDUSTRIAL PRODUCTS IN EXETER NH TO HIS SURPRISE TYCO DIRECTORS FROZE HIS ANNUAL BASE SALARY AT ABOUT 900000 WHEN HE MOVED UP FROM PRESIDENT AND CHIEF OPERATING OFFICER TO CHIEF EXECUTIVE LAST SUMMER THE BOARD SAID THERE IS NOTHING MORE IN THIS FOR YOU UNTIL WE SEE YOUR PERFORMANCE AS A CEO MR KOZLOWSKI RECALLS IT IS A DIFFERENT ERA EXERCISING OPTIONS THE CHANGE IN PAY PRACTICES WAS LESS OBVIOUS IN TOTAL CHIEF EXECUTIVE COMPENSATION LAST YEAR HOWEVER NUMEROUS CEOSLOOKING TO SAVE MONEY FOR THEMSELVES AND THEIR COMPANIESEXERCISED STOCK OPTIONS AMASSED IN RECENT YEARS PRESIDENT CLINTON WANTS TO RAISE TAXES FOR THE VERY RICH AND ELIMINATE CORPORATE TAX BREAKS FOR EXECUTIVE PAY OVER 1 MILLION ALTHOUGH THE CAP WOULDN'T APPLY TO PAYMENTS LINKED TO AN EXECUTIVE'S PERFORMANCE TO AVOID A HIGHER TAX BITE FOR INSTANCE WALT DISNEY CO CHAIRMAN MICHAEL D EISNER CASHED IN ENOUGH LOWCOST OPTIONS LAST FALL TO REALIZE AN INDICATED PRETAX PROFIT OF NEARLY 127 MILLION HE MADE THE MONEY BY EXERCISING OPTIONS FOR FIVE MILLION SHARES AND THEN IMMEDIATELY SELLING 3450000 OF THE SHARES THAT GAIN WASN'T INCLUDED IN MERCER'S SURVEY BECAUSE MR EISNER EXERCISED THOSE OPTIONS AFTER DISNEY'S FISCAL YEAR ENDED ON SEPT 30 THE FLURRY OF OPTION EXERCISES DROVE UP TOTAL CEO COMPENSATION WHICH INCLUDES SUCH LONGTERM PAYOUTS SALARIES BONUSES AND FOR THE FIRST TIME THE VALUE OF RESTRICTED STOCK AT THE TIME OF THE GRANT TOTAL COMPENSATION SURGED 117 AT THE SURVEYED BUSINESSES MUCH HIGHER THAN THE 42 ADVANCE IN 1991 YET THERE WAS REMARKABLY LITTLE INVESTOR OUTCRY OVER THE BIG BUCKS EARNED BY MANY CHIEF EXECUTIVES IN 1992 MOST CHIEF EXECUTIVES WHO COLLECTED A BONANZA FROM OPTION EXERCISES RUN TOPPERFORMING COMPANIES AT THE SAME TIME SHAREHOLDER ACTIVISTS SAY BUSINESSES INCREASINGLY CONSULT THEM BEFORE ALTERING EXECUTIVEPAY PLANS WITH BOTH SIDES FOCUSING MORE ON PAY TACTICS THAN ON PAY AMOUNTS IT'S A PRETTY WIDELY HELD VIEW SAYS SARAH TESLIK EXECUTIVE DIRECTOR OF THE COUNCIL OF INSTITUTIONAL INVESTORS A WASHINGTON DC GROUP REPRESENTING 80 PENSION FUNDS WITH TOTAL ASSETS EXCEEDING 500 BILLION SHE SAYS COUNCIL MEMBERS ARE TELLING CEOS I DON'T CARE IF YOU ARE PAID 75 MILLION AS LONG AS IT IS TIED TO PERFORMANCE TO STRENGTHEN SUCH LINKS SOME COMPANIES ARE ABANDONING COMPENSATION PRACTICES THAT ACTIVISTS SAID WERE NOT IN SHAREHOLDERS' INTERESTS ONE EXAMPLE REPRICING OF UNDERWATER OPTIONS A STOCK OPTION GIVES THE HOLDER THE RIGHT TO BUY A SHARE IN THE FUTURE AT A FIXED PRICE EXECUTIVES PROFIT ON PAPER WHEN THE STOCK PRICE RISES ABOVE THE OPTION'S EXERCISE PRICE OPTIONS LOSE VALUE IF A SHARE PRICE FALLS BELOW THE OPTION PRICE AND STAYS UNDERWATER HIGHTECHNOLOGY COMPANIES AND OTHERS HAVE LONG PROTECTED MANAGERS BY LOWERING THE EXERCISE PRICE ON UNDERWATER OPTIONS OR CANCELING OLD OPTIONS AND ISSUING NEW ONES AT A LOWER PRICE ADVANCED MICRO DEVICES INC LOWERED THE PRICE ON STOCK OPTIONS SIX TIMES BETWEEN 1985 AND 1990 TO ATTRACT AND RETAIN TALENT IN A HOTLY COMPETITIVE INDUSTRY DURING VERY DIFFICULT AND TRYING TIMES EXPLAINS A SPOKESMAN FOR THE SUNNYVALE CALIF SEMICONDUCTOR MAKER RICHARD KOPPES GENERAL COUNSEL OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM THE NATION'S BIGGEST PUBLIC PENSION FUND CASTIGATES ADVANCED MICRO'S REPRICING AS OUTRAGEOUS IT WASN'T RELATED TO PERFORMANCE BECAUSE THE COMPANY WASN'T MAKING MONEY DURING THAT PERIOD HE ARGUES CALPERS AS THE FUND IS KNOWN TARGETED ADVANCED MICRO AND 11 OTHER COMPANIES THIS YEAR IN AN EFFORT TO IMPROVE THEIR FINANCIAL PERFORMANCE AND STOCK PRICES AT A MEETING IN LATE JANUARY MR KOPPES RECALLS CALPERS' CHIEF EXECUTIVE DALE HANSON TOLD WJ SANDERS ADVANCED MICRO'S CHAIRMAN AND CHIEF EXECUTIVE THAT REPRICING UNDERWATER OPTIONS LOOKS BAD BECAUSE WE AS SHAREHOLDERS DON'T GET THE SAME PROFIT PROTECTION MR SANDERS AGREED TO CONSULT WITH INVESTORS BEFORE FUTURE REPRICING MOVES ADVANCED MICRO AND CALPERS OFFICIALS SAY THOUGH LEGAL OBSTACLES FORCED THE CHIEF EXECUTIVE TO WITHDRAW THAT PROMISE A BOARD COMMITTEE OF OUTSIDE DIRECTORS WILL PASS JUDGMENT ON ANY REPRICING ACCORDING TO THOMAS ARMSTRONG ADVANCED MICRO'S CORPORATE SECRETARY AND GENERAL COUNSEL BUT IN THE ENVIRONMENT WE HAVE NOW HE CONCEDES IT WOULD BE VERY DIFFFICULT TO REPRICE UNDERWATER OPTIONS AGAIN OPTION REPRICING HAS VIRTUALLY DISAPPEARED ELSEWHERE TOO AS A RESULT OF INVESTOR FUROR AND THE SECURITIES AND EXCHANGE COMMISSION'S NEW PROXYSTATEMENT RULES FOR EXECUTIVE PAY AMONG OTHER THINGS THE RULES DEMAND DETAILED DISCLOSURE ABOUT REPRICED UNDERWATER OPTIONS I AM NOT AWARE OF ANYONE EVEN SERIOUSLY TALKING ABOUT THE IDEA SAYS MICHAEL GUTHMAN AN EXECUTIVECOMPENSATION PARTNER FOR CONSULTANTS HEWITT ASSOCIATES IN ITS ROWAYTON CONN OFFICE IN THE FUTURE WE ARE GOING TO SEE FEWER EXAMPLES OF EGREGIOUS PAYOUTS WHEN PERFORMANCE IS POOR PREDICTS DAVID N SWINFORD A MERCER PRINCIPAL BUT WE ARE GOING TO SEE MORE EXAMPLES OF EXECUTIVES MAKING A LOT OF MONEY WHEN THEY INCREASE THE VALUE OF SHAREHOLDERS' STAKE HE CONTINUES IT WON'T BE LONG BEFORE DISNEY'S EISNER LOOKS LIKE A PAUPER CHIEF EXECUTIVES' CHANCES TO MAKE BIG MONEY INCREASINGLY WILL DEPEND ON STOCKCOMPENSATION PROGRAMS CLOSELY LINKED TO SUBSTANTIAL GROWTH IN A COMPANY'S SHARE'S PRICE A PLAN TARGETED TO THE STOCK PRICE IS A LOT BETTER THAN HAVING RUNAWAY PLANS THAT PAID OFF RIDICULOUSLY HIGH NUMBERS WHETHER THE CHIEF EXECUTIVE EARNED IT OR NOT SAYS BURTON JOYCE CHAIRMAN AND CHIEF EXECUTIVE OF TERRA INDUSTRIES INC A FERTILIZER MAKER IN SIOUX CITY IOWA MR JOYCE RECENTLY GOT OPTIONS ON 300000 SHARES BUT HE CAN'T EXERCISE ALL OF THEM UNTIL TERRA'S STOCK PRICE SOARS 50 TO 100 ABOVE ITS 5ASHARE LEVEL AT THE TIME OF THE GRANT LAST SEPTEMBER TERRA IS HARDLY UNIQUE THE MERCER SURVEY SHOWED THAT 17 CORPORATIONS SET UP STOCK PLANS IN 1992 WHOSE REWARDS DEPEND ON SPECIFIC IMPROVEMENTS IN THE SHARE PRICE FIFTYSIX CONCERNS USED STOCKPRICE APPRECIATION AS A SPECIFIC PERFORMANCE GOAL FOR EXECUTIVE PAY IN 1992 UP 47 FROM 38 IN 1990 ACCORDING TO AN ANALYSIS OF 1000 COMPANIES BY EXECUTIVE COMPENSATION REPORTS A NEWSLETTER IN FAIRFAX STATION VA THERE IS PRESSURE TO SHOW THAT PAY IS NOT WHIMSICAL NOR AN AUTOMATIC PAYOUT SAYS ELIZABETH ARREGLADO A RESEARCH ASSOCIATE AT THE CONFERENCE BOARD A BUSINESSRESEARCH GROUP IN NEW YORK UNTIL NOW HOWEVER STOCK COMPENSATION LARGELY HAS BEEN A FREE RIDE RESTRICTED STOCK COSTS AN EXECUTIVE LITTLE OR NOTHING LIMITS ON SELLING SUCH SHARES LAPSE AFTER A SET PERIOD AND A CHIEF EXECUTIVE WHO AMASSES A RICH PILE OF STOCK OPTIONS CAN EARN A HANDSOME PROFIT FROM A SLIGHT APPRECIATION IN THE SHARE PRICE LOOK AT SOCALLED MEGA GRANTS DEFINED AS AN OPTION WITH A FACE VALUE OF MORE THAN THREE TIMES ANNUAL PAY OR A RESTRICTEDSTOCK GRANT WITH A FACE VALUE OF MORE THAN ONE TIMES PAY IN 1991 62 COMPANIES GAVE CEOS THESE EYEPOPPING AWARDS UP FROM 45 IN 1990 MEGA GRANTS' GROWING POPULARITY IN RECENT YEARS CONTRIBUTED TO THE STAMPEDE OF OPTION EXERCISES IN LATE 1992 BUT THE GRANTS' POPULARITY MAY BE LEVELING OFF SIXTYTHREE COMPANIES MADE MEGA GRANTS LAST YEAR SOME OF THE GRANTS ARE NOW BEING TIGHTLY PEGGED TO HEFTY STOCKPRICE GAINS MEGA GRANTS NEVER CAME WITH THESE STRINGS BEFORE COMPENSATION EXPERTS SAY IN JANUARY COLGATEPALMOLIVE CO AWARDED CHIEF EXECUTIVE REUBEN MARK OPTIONS TO BUY ONE MILLION SHARES BUT MR MARK WON'T REALIZE PROFITS UNLESS COLGATE'S STOCK PRICE INCREASES SUBSTANTIALLY BETWEEN 1993 AND 1998 HE ALSO WON'T RECEIVE ANY MORE OPTIONS DURING THAT PERIOD HIS SOCALLED PREMIUM OPTIONS HAVE EXERCISE PRICES OF BETWEEN ABOUT 61 AND 100 A SHARE COMPARED WITH COLGATE'S SHARE PRICE OF ABOUT 55 WHEN IT GAVE HIM THE OPTIONS HOW RADICAL TO BE SURE NOT EVERY CEO PAY PACKAGE THESE DAYS IS A RADICAL SHIFT IN APPROACH AND NOT EVERY RESTRUCTURING TRANSFORMS PAY FROM AN ENTITLEMENT TO RISKS SHARED EQUALLY WITH INVESTORS MOST ARE A CHANGE FROM THE STATUS QUO BUT SOME ARE MORE OF A CHANGE THAN OTHERS A LOOK AT THREE COMPANIES' NEW PLANS SHOWS HOW THE REVAMPINGS RUN THE GAMUT OLIN CORP JOHN W JOHNSTONE CHAIRMAN AND CHIEF EXECUTIVE RECEIVED 18000 PREMIUM OPTIONS EXERCISABLE AT 6360 A SHARE 20 HIGHER THAN THE PRICE AT WHICH THE STOCK TRADED WHEN THE CHEMICALS DEFENSE AND AEROSPACE CONCERN MADE THE GRANT LAST APRIL THE OPTIONS WERE AMONG SEVERAL STEPS TAKEN TO FURTHER STRENGTHEN THE ALIGNMENT BETWEEN THE INTERESTS OF SHAREHOLDERS AND SENIOR EXECUTIVES OLIN'S COMPENSATION COMMITTEE NOTED IN ITS PROXY STATEMENT IN ORDER FOR THIS SPECIAL OPTION GRANT TO BE OF ANY VALUE TO THE CEO THE PANEL WENT ON OLIN'S MARKET VALUE TO ITS COMMON SHAREHOLDERS WOULD HAVE TO INCREASE IN VALUE IN EXCESS OF 200 MILLION PRETTY IMPRESSIVE HUH NOT REALLY SAYS MERCER'S MR SWINFORD BECAUSE THE OPTIONS DON'T EXPIRE FOR 10 YEARS MR JOHNSTONE WILL BENEFIT IF OLIN'S SHARE PRICE SIMPLY RISES IN EXCESS OF 19 A YEAR INCLUDING ANTICIPATED DIVIDENDS THAT'S A VERY MINIMAL AMOUNT OF MONEY IN TERMS OF TOTAL RETURNS TO SHAREHOLDERS MR SWINFORD CONTENDS HE SEES THE OPTIONS AS ONLY CREATING SOMEWHAT MORE RISK FOR THE OLIN CHIEF EXECUTIVE MR JOHNSTONE WILL DO EVERYTHING IN HIS POWER TO SEE THERE IS MORE THAN A 19AYEAR RETURN TO SHAREHOLDERS RESPONDS MICHAEL E CAMPBELL OLIN'S VICE PRESIDENT FOR HUMAN RESOURCES I THINK THERE ARE RELATIVELY FEW COMPANIES PUTTING IN PREMIUM OPTIONS OF THIS TYPE WARNERLAMBERT CO THE BIG MAKER OF DRUGS AND CONSUMER HEALTHCARE PRODUCTS SET A HIGHER HURDLE FOR ITS CHAIRMAN AND CHIEF EXECUTIVE IN FEBRUARY 1992 WARNERLAMBERT GAVE MELVIN R GOODES INDEXED OPTIONS TO PURCHASE 84000 SHARES THE OPTIONS' EXERCISE PRICE TO BE SET IN 1996 WILL REFLECT INCREASES IN THE STANDARD & POOR'S 500STOCK INDEX IF THE INDEX STAYS FLAT OR FALLS THE OPTIONS' EXERCISE PRICE WON'T BE ANY LOWER THAN THEIR PRICE AT THE TIME OF THE GRANT WHICH RANGED BETWEEN ABOUT 64 AND ABOUT 69 A SHARE THE PLAN WHICH ALSO COVERS FOUR OTHER SENIOR OFFICERS ENCOURAGES TOP MANAGEMENT TO DRIVE WARNERLAMBERT'S SHARE PRICE ABOVE THE NORMAL GROWTH IN THE MARKET A SPOKESMAN SAYS DRUGCOMPANY ANALYSTS ARE IMPRESSED I THINK THE INDEXING PLAN IS A GREAT IDEA SAYS RONALD M NORDMANN OF PAINEWEBBER INC IT INCENTIVIZES MANAGEMENT TO PERFORM IN EXCESS OF THE MARKET A TOUGH TASK GIVEN PRESIDENT CLINTON'S CRACKDOWN ON HEALTHCARE COSTS ON THE OTHER HAND WARNERLAMBERT SAYS ITS SHARE PRICE CLIMBED 65 DURING THE PAST FOUR YEARS FASTER THAN THE 51 GAIN IN THE S&P INDEX AND THE INDEXING WILL BE SET IN 1996 LONG BEFORE THE OPTIONS EXPIRE IN THE YEAR 2002 IT'S A POSITIVE STEP IN THE RIGHT DIRECTION BUT IT'S NOT THE WHOLE HOG IN TERMS OF MATCHING MANAGEMENT'S AND SHAREHOLDERS' RISKS SAYS ROBBI FOX A HEWITT RESEARCHER STEWART ENTERPRISES INC THIS NEW ORLEANS OWNER AND OPERATOR OF FUNERAL HOMES AND CEMETERIES MADE EVEN MORE RADICAL CHANGES IN ITS APPROACH TO CHIEF EXECUTIVE PAY DIRECTORS DROPPED A PLAN THAT GAVE PRESIDENT AND CHIEF EXECUTIVE LAWRENCE BERNER AN AUTOMATIC 10 RAISE EVERY YEAR THEN THEY INCREASED HIS BASE SALARY TO 500000 A YEAR FROM ABOUT 270000 AND FROZE THAT SALARY FOR FOUR YEARS MOREOVER THEY ELIMINATED A PLAN THAT PRACTICALLY ASSURED HIM A 300000AYEAR BONUS REPLACING IT WITH TOUGHER TARGETS FOR A BONUS THAT CANNOT EXCEED A TOTAL OF 250000 OVER FOUR YEARS AT THE SAME TIME THE BOARD GRANTED MR BERNER OPTIONS TO BUY 100000 SHARES STARTING IN LATE 1996 BUT THERE'S A CATCH HE CAN CASH THEM IN ONLY IF THE SHARE PRICE REACHES 4450 REPRESENTING A 20 COMPOUNDED ANNUAL GROWTH OVER THE NEXT FOUR YEARS AND IF THE AVERAGE ANNUAL COMPOUNDED INCREASE IN STEWART'S EARNINGS PER SHARE IS AT LEAST 15 DURING THAT PERIOD THOSE REPRESENT VERY TOUGH HURDLES SAYS ROBERT MONKS SR A LONGTIME SHAREHOLDER ACTIVIST AND PRINCIPAL OF INVESTMENT MANAGERS LENS INC IN WASHINGTON DC IF SOMEONE BEATS THAT HE OUGHT TO GET PAID WELL STEWART DIRECTORS ADDED A PROFIT TARGET TO THE NEW OPTIONS PLAN BECAUSE WE DIDN'T WANT SOME ABERRATION TO CAUSE AN INCREASE IN THE STOCK PRICE WE WANTED TO GET THERE THE RIGHT WAY EXPLAINS JOSEPH HENICAN III STEWART'S OUTSIDE COUNSEL AND CHAIRMAN OF ITS BOARD'S COMPENSATION COMMITTEE HOW MUCH RICHER MR BERNER GETS IS NOW TIED MUCH MORE CLOSELY TO THE INTERESTS OF SHAREHOLDERS MR HENICAN SAYS THIS IS THE WAY THAT THINGS ARE MOVING IN CORPORATE AMERICA MS LUBLIN DEPUTY MANAGEMENT EDITOR IN THE WALL STREET JOURNAL'S NEW YORK BUREAU SERVED AS CONTRIBUTING EDITOR OF THIS WALL STREET JOURNAL REPORT 9304210187 930406 LETTERS TO THE EDITOR GOOD VIBES BETWEEN WHITE HOUSE MILITARY YOUR MARCH 24 CAPITAL JOURNAL COLUMN CLINTON ATTEMPTS TO NARROW GAP WITH MILITARY MENTIONS A MUCHREPEATED INCIDENT THAT IS USED TO PORTRAY THE ALLEGED INSENSITIVITY OF THE WHITE HOUSE STAFF TO THE US MILITARY THE DEPUTY NATIONAL SECURITY ADVISER SANDY BERGER CALLED ME WHEN HE HEARD THE STORY AND WAS EMPHATIC THAT THE WHITE HOUSE WOULD NOT TOLERATE ANY DISRESPECT TO THE UNIFORMED SERVICES THE BOTTOM LINE IS THAT YOUR READERS SHOULD UNDERSTAND THAT THE ENVIRONMENT I ENCOUNTER IN THE WHITE HOUSE THE STATE DEPARTMENT AND THE DEFENSE DEPARTMENT IS OPEN MUTUALLY RESPECTFUL AND COOPERATIVE I HAVE FACED ZERO ANIMOSITY IN MY DEALINGS WITH A BROAD RANGE OF DEDICATED MEN AND WOMEN OF THE NEW ADMINISTRATION WHO ARE STRUGGLING TO FIND SOLUTIONS TO SOME ENORMOUSLY COMPLEX NATIONAL SECURITY ISSUES WE HAVE DIFFERENT VIEWPOINTS BUT ALL OF US ARE WORKING AS A TEAM TO SAFEGUARD US INTERESTS IN THE DANGEROUS SITUATIONS WE FACE IN FORMER YUGOSLAVIA SOMALIA IRAQ KOREA AND OTHER GLOBAL FLASH POINTS DISRESPECT TO THE US MILITARY FROM THE WHITE HOUSE NOT SO I SHOULD ADD THAT OUR CONSTITUTIONAL RESPONSIBILITY IN THE US ARMED FORCES IS TO GAIN AND KEEP THE TRUST OF OUR COMMANDER IN CHIEF AND HIS APPOINTED CIVILIAN LEADERSHIP WE'VE MADE A GOOD START WHAT'S THIS I READ ABOUT A CLINTON AIDE NOT BEING POLITICALLY CORRECT PICKING ON A VICTIMIZED MINORITY A MEMBER OF THE US ARMED FORCES SAYING SHE DOESN'T TALK TO MILITARY PEOPLE AT LEAST THE NO DOGS OR SOLDIERS ALLOWED SIGNS FROM THE 1930S WERE DISPLAYED ONLY IN GARRISON TOWNS AND NOT ALL OF THEM SEE RELATED LETTERS LETTERS TO THE EDITOR OLD SOLDIERS JUST SOLDIER ON WSJ APRIL 21 1993 9304060016 9304210186 930421 DOES MARGINLOAN BINGE SIGNAL STOCKMARKET TOP BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SMALL INVESTORS ARE FLOCKING IN RECORD NUMBERS TO BUY STOCKS AND OTHER INVESTMENTS ON MARGIN OR WITH BORROWED MONEY IS THIS A SIGN OF A STOCKMARKET TOP STRATEGISTS DISAGREE AFTER SINKING IN THE WAKE OF THE 1987 STOCKMARKET CRASH MARGIN LENDING AT THE NATION'S BIG BROKERAGE FIRMS HAS SURGED AMID BUOYANT STOCK PRICES AND LOW SHORTTERM INTEREST RATES WITH A MARGIN LOAN INVESTORS BORROW CASH AGAINST THE VALUE OF STOCK OR BONDS IN THEIR PORTFOLIO EITHER TO BUY MORE SECURITIES OR FOR OTHER PURPOSES INDIVIDUALS CAN BORROW AS MUCH AS 50 OF THE VALUE OF THEIR STOCK PORTFOLIO AND AS MUCH AS 90 OF THEIR BOND PORTFOLIO MARGIN LOANS TO INDIVIDUAL INVESTORS SOARED TO A RECORD 4516 BILLION AT THE END OF MARCH ECLIPSING THE PEAK SET IN SEPTEMBER 1987 A MONTH BEFORE THE CRASH ACCORDING TO THE NEW YORK STOCK EXCHANGE THAT'S A 16 JUMP FROM A YEAR EARLIER AND 52 HIGHER THAN MARCH 1991 HIGHER STOCK AND BOND PRICES HAVE BOOSTED THE BORROWING POWER OF INVESTORS WITH MARGIN ACCOUNTS BROKERAGE EXECUTIVES SAY AND MANY INVESTORS HAVE OPTED FOR MARGIN LOANS RECENTLY ATTRACTED BY THE LOW INTEREST RATES FOR EVEN THE SMALLEST STOCK MARKET PLAYERS FOR EXAMPLE AN INVESTOR WHO WANTS TO BORROW LESS THAN 10000 CAN GET A MARGINLOAN RATE OF 825 AT MERRILL LYNCH & CO THE NATION'S BIGGEST BROKERAGE FIRM INVESTORS WHO WANT LARGER LOANS PAY LESS THOSE WITH MARGIN LOANS OF MORE THAN 100000 PAY 625 AT MERRILL BY COMPARISON BANK CHARGES ON CREDIT CARD LOANS HAVE REMAINED STUBBORNLY ABOVE 15 SO INVESTORS CAN BORROW MORE CHEAPLY FROM WALL STREET FIRMS TO PAY OFF OTHER HIGHERINTEREST LOANS BUT SOME STOCKMARKET STRATEGISTS SAY THE MARGINLENDING BINGE COULD BE A SIGN THAT STOCK PRICES ARE DANGEROUSLY HIGH HEAVY MARGIN LENDING PRECEDED THE 1929 AND 1987 STOCKMARKET CRASHES THOUSANDS OF INVESTORS WHO BOUGHT STOCKS ON MARGIN GOT CAUGHT IN THOSE CRASHES THEY WERE HIT WITH MARGIN CALLS FROM THEIR BROKERS WHICH REQUIRED THE INVESTORS IMMEDIATELY TO PUT UP MORE CASH TO OFFSET THE DECLINE IN THE VALUE OF THEIR STOCK PORTFOLIOS THE RECENT SURGE IN MARGIN LENDING COUPLED WITH THE LARGE AMOUNT OF CASH FLOODING INTO MUTUAL FUNDS IS A WARNING SIGN FOR THE MARKET SAYS PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES THAT DOESN'T MEAN THE STOCK MARKET WILL IMMEDIATELY PLUNGE THE MARKET COULD FLY A LITTLE HIGHER BEFORE SLIPPING MR CANELO SAYS BUT SOME MARKET STRATEGISTS ARGUE THAT MARGIN LENDING ISN'T AS VALID A PREDICTOR OF STOCKMARKET STUMBLES AS IT ONCE WAS MORE PEOPLE ARE BUYING STOCKS THROUGH MUTUAL FUNDS THAN EVER REDUCING THE IMPACT ON THE STOCK MARKET OF ANY MARGIN CALLS ON INVESTORS WHO BUY INDIVIDUAL STOCKS THROUGH BROKERS SOME STRATEGISTS ALSO SAY THAT HEAVY MARGIN LENDING WON'T BE A PROBLEM FOR THE STOCK MARKET UNLESS STOCKS FALL SHARPLY TRIGGERING A WAVE OF MARGIN CALLS THE REAL VICE OF MARGIN DEBT IS THAT IT TENDS TO TURN DECLINES INTO WATERFALLS WITH INVESTORS FORCED TO LIQUIDATE STOCKS SAYS MICHAEL METZ INVESTMENT STRATEGIST AT OPPENHEIMER & CO MARGIN LOANS AT MOST BROKERAGE FIRMS HAVE RISEN STEADILY IN THE PAST TWO YEARS THIS GRADUAL INCREASE SUGGESTS THAT HIGHER MARGIN DEBT ISN'T TIED TO ANY SUDDEN FROTHINESS IN THE MARKET WALL STREET EXECUTIVES SAY YOU DON'T SEE THE SPECULATIVE FERVOR THAT EXISTED IN 1987 SAYS MICHAEL FLANAGAN A BROKERAGE ANALYST AT LIPPER ANALYTICAL SECURITIES CORP THE NATURE OF MARGIN LENDING HAS SHIFTED SOMEWHAT BROKERAGE EXECUTIVES SAY THOUGH MOST PEOPLE STILL USE MARGIN LOANS TO BUY STOCKS AND BONDS MORE INVESTORS ARE USING MARGIN LOANS TO PAY OFF THEIR HIGHCOST CREDIT CARD AND OTHER DEBT AMONG OTHER THINGS WHAT WE'RE SEEING IS A FAIRLY CONSERVATIVE USE OF MARGIN WHICH SUGGESTS THAT PEOPLE ARE SEEING WHAT A TOOL IT CAN BE SAYS CHARLES A HUMM SENIOR VICE PRESIDENT AT MERRILL LYNCH CREDIT CORP MERRILL'S MORTGAGE AND MARGINLENDING ARM BROKERAGE FIRMS GENERALLY DON'T DISCLOSE HOW INVESTORS USE MARGIN LOANS BUT SHORTTERM RATES ARE SO LOW THAT PEOPLE ARE CONSOLIDATING SOME OF THEIR CONSUMER DEBT SAYS DAVID DIEFENBACH VICE PRESIDENT OF INVESTORLENDING SERVICES AT PRUDENTIAL SECURITIES INC A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA WE HAVE SEEN A PICKUP IN BORROWING FOR NONSECURITIES PURPOSES HE SAYS INVESTORS WITH MARGIN LOANS OF LESS THAN 10000 CAN GET A MARGIN RATE OF ABOUT 775 AT PRUDENTIAL SECURITIES MR DIEFENBACH SAYS AND LOWER MARGIN RATES CAN BE NEGOTIATED FOR MANY INVESTORS FOR WALL STREET MARGIN LENDING IS A BIG PROFIT CENTER AND THE RECENT SURGE IN MARGIN DEBT IS HELPING BOOST THE BOTTOM LINES OF MANY BROKERAGE FIRMS BUT WITH INTEREST RATES LOW THE SPREAD BETWEEN WHAT BROKERAGE FIRMS PAY FOR MONEY AND THE HIGHER INTEREST RATES THEY CHARGE INVESTORS HAS NARROWED BROKERAGE EXECUTIVES SAY IN A HIGHER INTERESTRATE ENVIRONMENT BROKERAGE FIRMS TYPICALLY RECEIVE AN AVERAGE OF 175 PERCENTAGE POINTS ABOVE THE BROKER CALL RATE OR WHAT BROKERS PAY FOR THEIR LOANS COLLATERALIZED BY SECURITIES THE BROKER CALL RATE IS CURRENTLY 5 THOUGH SOME FIRMS QUOTE THEIR OWN HIGHER BASE RATE WHEN FIGURING MARGIN LOANS IN TODAY'S ROCKBOTTOM RATE WORLD THE SPREAD HAS NARROWED TO ABOUT 14 PERCENTAGE POINTS ABOVE THE BROKER CALL RATE BROKERAGE EXECUTIVES SAY 9304210185 930421 PIPER JAFFRAY REPORTS PROFIT INCREASED 37 IN FISCAL 2ND QUARTER MINNEAPOLIS PIPER JAFFRAY COS ITS MARGINS THINNED BY A GROWTH PROGRAM SAID EARNINGS FOR THE FISCAL SECOND QUARTER ROSE 37 ON A 78 INCREASE IN REVENUE THE BROKERAGE CONCERN REPORTED NET FOR THE QUARTER ENDED MARCH 31 OF 112 MILLION OR 127 A SHARE UP FROM THE YEARAGO 108 MILLION OR 128 A SHARE PERSHARE FIGURES REFLECT AN INCREASE IN THE NUMBER OF PRIMARY SHARES TO 88 MILLION FROM 84 MILLION REVENUE FOR THE QUARTER CLIMBED TO 1081 MILLION FROM 1003 MILLION PIPER JAFFRAY CITED THE STOCK MARKET'S STRENGTH AND THE CURRENT LOW INTEREST RATES ALONG WITH IMPRESSIVE PERFORMANCES FROM ITS CORE BUSINESSES ALL THREE OPERATIONS THE COMPANY'S INDIVIDUAL INVESTOR SERVICES CAPITAL MARKETS AND INVESTMENT MANAGEMENT SERVICESRECORDED HIGHER EARNINGS THE COMPANY SAID EXPENSES INCREASED 86 FROM THE YEARAGO QUARTER PIPER JAFFRAY SAID AND THE YEARTODATE EXPENSES ARE UP 13 THE COMPANY SAID THAT IT HAS MADE IN THE CURRENT YEAR'S FIRST HALF CONSCIOUS INVESTMENTS IN EACH OF OUR BUSINESSES TO CONTINUE THE GROWTH WE EXPERIENCED IN 1992 WHILE THOSE INVESTMENTS CAUSED A SLIGHT INCREASE IN COMPENSATION AS A PERCENT OF REVENUES THE COMPANY SAID IT IS INVESTING IN PEOPLE FOR THE FUTURE THROUGH THE FIRST SIX MONTHS PIPER JAFFRAY INCREASED THE NUMBER OF OFFICES TO 70 BY OPENING THREE NEW BRANCHES NEW OFFICES TYPICALLY ARE OPEN A WHILE BEFORE THEY REACH AN OPTIMAL PERFORMANCE LEVEL THE COMPANY ALSO HIRED ADDITIONAL BACKOFFICE HELP TO SUPPORT ITS CONTINUING GROWTH A SPOKESWOMAN SAID IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY PIPER JAFFRAY SHARES WERE QUOTED AT 28875 DOWN 125 FOR THE SIX MONTHS PIPER JAFFRAY'S NET ROSE 11 TO 201 MILLION OR 227 A SHARE FROM THE YEAREARLIER 181 MILLION OR 216 A SHARE YEARTODATE REVENUE WAS 198 MILLION UP 13 FROM 1758 MILLION 9304210184 930421 FINANCING BUSINESS CANADIAN OCCIDENTAL PETROLEUM LTD CANADIAN OCCIDENTAL PETROLEUM LTD CALGARY ALBERTA SAID IT PLANS AN OFFERING OF 100 MILLION CANADIAN DOLLARS US797 MILLION OF DEBENTURES THE DEBENTURES WILL CARRY A COUPON OF 77 AND WILL MATURE MAY 7 1998 THE CALGARY OIL AND GAS AND CHEMICALS CONCERN SAID PROCEEDS WILL BE USED FOR CAPITAL SPENDING AND GENERAL CORPORATE PURPOSES THE COMPANY SAID AN UNDERWRITING GROUP LED BY TORONTO DOMINION SECURITIES INC OF TORONTO HAS AGREED TO PURCHASE THE DEBENTURES THE COMPANY SAID CANADIAN OCCIDENTAL IS 28 OWNED BY OCCIDENTAL PETROLEUM CORP LOS ANGELES 9304210183 930421 DIVIDEND NEWS RYMAC MORTGAGE INVESTMENT CORP RYMAC MORTGAGE INVESTMENT CORP STEUBENVILLE OHIO SAID IT WON'T PAY A FIRSTQUARTER DIVIDEND BECAUSE MORTGAGE PREPAYMENTS FROM HEAVY LEVELS OF REFINANCINGS ARE SAPPING EARNINGS RYMAC A REAL ESTATE INVESTMENT TRUST PAID A FOURTHQUARTER DIVIDEND OF FIVE CENTS A SHARE ON JAN 15 THE COMPANY INVESTS IN MORTGAGE DERIVATIVE SECURITIES WHICH ARE BEING HIT HARD BY REFINANCINGS IN 1992 RYMAC HAD A LOSS OF 19 MILLION OR 36 CENTS A SHARE COMPARED WITH NET INCOME OF 79 MILLION OR 152 A SHARE IN 1991 9304210182 930421 FINANCING BUSINESS FEDERALMOGUL CORP FEDERALMOGUL CORP SOUTHFIELD MICH SAID IT SOLD 625 MILLION SHARES OF ITS COMMON STOCK PRICED AT 19375 IN SIMULTANEOUS US AND INTERNATIONAL OFFERINGS OF THE TOTAL SHARES OFFERED 53 MILLION WERE SOLD IN THE US AND 950000 SHARES WERE SOLD ABROAD FIRST BOSTON CORP DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND LEHMAN BROTHERS WERE MANAGERS OF THE US OFFERING THE COMPANY HAS ALSO GRANTED THE UNDERWRITERS AND MANAGERS AN OPTION TO PURCHASE AS MUCH AS AN ADDITIONAL 750000 SHARES TO COVER OVERALLOTMENTS IF ANY THE COMPANY WILL USE THE NET PROCEEDS OF THE OFFERING TO REPAY DEBT AND FOR GENERAL CORPORATE PURPOSES 9304210181 930421 GREYHOUND AGREES TO SETTLE ATU STRIKE WITH BACK PAY WASHINGTON GREYHOUND LINES INC AGREED TO PROVIDE 22 MILLION IN BACK PAY TO SETTLE A BITTER THREEYEAR STRIKE WITH 5800 WORKERS THE ACCORD WHICH HAD BEEN EXPECTED COMES AS THE COMPANY IS ATTEMPTING TO REGAIN ITS LUSTER AFTER EMERGING FROM CHAPTER 11 BANKRUPTCY REORGANIZATION THE ACCORD MUST BE APPROVED BY THE UNION RANK AND FILE THE NATIONAL LABOR RELATIONS BOARD AND THE BANKRUPTCY COURT GREYHOUND HAS SET ASIDE FUNDS FOR THE BACK PAY THE UNION HASN'T YET DECIDED HOW THAT PAY WOULD BE DIVIDED LOCAL UNION LEADERS EXPECT MEMBERS TO RATIFY THE ACCORD AFTER BALLOTS ARE MAILED TODAY 9304210180 930421 DIVIDEND NEWS FIRST FIDELITY BANCORP FIRST FIDELITY BANCORP A LAWRENCEVILLE NJ REGIONAL BANK HOLDING COMPANY INCREASED ITS QUARTERLY DIVIDEND 12 TO 37 CENTS A SHARE FROM 33 CENTS PAYABLE MAY 7 TO SHARES OF RECORD APRIL 30 IT HAS 79 MILLION SHARES OUTSTANDING 9304210179 930421 INTERNATIONAL AGENCY IN CHINA CHANGES ITS PRIORITIES FESCO NOW PREFERS PROFITMAKING TO CORPORATE SPYING BY JAMES MCGREGOR STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING THE CHANGES HAVE BEEN EARTHSHAKING SINCE LAST YEAR WHEN CHINA'S PARAMOUNT LEADER DENG XIAOPING CALLED FOR CHINA TO CREATE SOMETHING CALLED A SOCIALIST MARKET ECONOMY FOR LOWPAID GOVERNMENT EMPLOYEES MR DENG'S EDICT PROVIDED THE GREEN LIGHT TO MOONLIGHT IN SECOND JOBS FOR GOVERNMENT ORGANIZATIONS IT HAS MEANT SPINNING OFF COMPANIES TO PLUNGE INTO PROFITMAKING GOVERNMENT ECONOMISTS NOW MOONLIGHT DOING MARKET SURVEYS ELEMENTARY SCHOOLS OPERATE TAXI CABS CUSTOMS AGENCIES ARE ESTABLISHING CUSTOMSCLEARING CONSULTING SERVICES SUCH ACTIVITIES ARE SURE TO ACCELERATE WITH PREMIER LI PENG'S ANNOUNCEMENT THAT HE WANTS TO REDUCE THE GOVERNMENT WORK FORCE BY 25 AND ELIMINATE DOZENS OF GOVERNMENT COMMISSIONS AND ADMINISTRATIVE ORGANIZATIONS AFTER MR LI'S MARCH ANNOUNCEMENT TO THE NATIONAL PEOPLE'S CONGRESS HIS UNDERLINGS SAID NOBODY WOULD BE FIRED OR LAID OFF IN THE PROCESS THE HOPE IS THAT BY SPINNING OFF MONEYMAKING ENTERPRISES ABUNDANT PROFITS AND SECURE EMPLOYMENT WILL BE CREATED BEIJING BUREAUCRATS WHO THINK THIS TRANSFORMATION WILL BE EASY AND BUSINESS PEOPLE WHO AREN'T PARTIAL TO BEING FLEECED FOR YEARS HAVE GOTTEN A TASTE OF CHINA'S BRAVE NEW FUTURE FROM THE FOREIGN ENTERPRISE SERVICE CORP ONE OF CHINA'S FIRST ATTEMPTS TO COMBINE GOVERNMENT AUTHORITY WITH PROFITMAKING FESCO IS AN EXAMPLE OF HOW GOVERNMENT POWER AND THE PURSUIT OF PROFIT CAN RESULT IN INTIMIDATION AND EXTORTION RATHER THAN INNOVATION AND ENTERPRISE FESCO WAS STARTED IN 1979 WHEN MR DENG FIRST OPENED CHINA'S DOORS TO FOREIGN INVESTORS UNDER CHINA'S COMMUNIST SYSTEM ALL CITYDWELLING CHINESE WERE ASSIGNED TO A DANWEI OR WORK UNIT AND FOREIGN COMPANIES OPENING OFFICES IN CHINA COULDN'T HIRE LOCAL STAFF ON THEIR OWN CHINA WAS PARANOID ABOUT FOREIGNERS BRINGING IN BOURGEOIS LIBERAL IDEAS THAT MIGHT ERODE WORKERS' FEALTY TO COMMUNIST IDEOLOGY SO THE BEIJING CITY PUBLIC SECURITY BRANCH FORMED FESCO WITH A DUAL MISSION TO PROVIDE EMPLOYEES TO FOREIGN OFFICES AND TO PLANT SPIES TO WATCH THE FOREIGNERS AND MONITOR THEIR CHINESE EMPLOYEES SINCE THEN CHINA HAS CHANGED SUBSTANTIALLY CITIZENS CAN NOW OPERATE PRIVATE BUSINESSES MANY CITY DWELLERS ARE NO LONGER UNDER THE THUMB OF ALLPOWERFUL WORK UNITS FOREIGN MANUFACTURING COMPANIES CAN DIRECTLY HIRE CHINESE CITIZENS BUT FOREIGN REPRESENTATIVE OFFICES IN CHINA INCLUDING SALES OFFICES AND LAW AND ACCOUNTING FIRMS STILL MUST CONTRACT WITH FESCO FOR ALL THEIR CHINESE WORKERS TO BE SURE FESCO ALSO HAS CHANGED IT IS NOW OBSESSED WITH REVENUES NOT SPYING FESCO DISCOVERED WHAT A GOLD MINE THEIR BUSINESS IS SAYS AN AMERICAN BUSINESSMAN IN BEIJING THE COMMERCIAL CONSIDERATIONS OVERTOOK THE SECURITY CONSIDERATIONS A LONG TIME AGO FOREIGN BUSINESS PEOPLE GET VISIBLY ANGRY WHEN DISCUSSING FESCO NOT ONE OF SEVERAL DOZEN FOREIGN OFFICE MANAGERS IN BEIJING INTERVIEWED WOULD TALK ON THE RECORD BUT NEITHER DID ANY SAY ANYTHING POSITIVE ABOUT FESCO SEVERAL SAID THEY WERE SO WORRIED ABOUT FESCO'S POWER TO RETALIATE THAT THEY WOULDN'T EVEN DISCUSS THE SUBJECT ANONYMOUSLY THE REASON IS THAT FESCO HAS AN IRON GRIP ON THEIR OPERATIONS IF A FOREIGN COMPANY OFFICE IN BEIJING NEEDS A SECRETARY IT CONTACTS FESCO UNTIL THE LAST FEW YEARS EVEN IF FESCO SENT OVER A PERSON WITH POOR TYPING SKILLS OR INSUFFICIENT ENGLISH THE OFFICE HAD TO ACCEPT THE EMPLOYEE THOSE WHO COMPLAINED COULD FIND THEIR REQUESTS FOR STAFF UNFILLED FOR WEEKS FOR SUCH SERVICES FOREIGN OFFICES TRADITIONALLY PAID FESCO MONTHLY FEES RANGING FROM FIVE TO 10 TIMES PREVAILING LOCAL WAGES WITH THIS MONEY FESCO WAS SUPPOSED TO PROVIDE THE EMPLOYEES A SALARY HOUSING MEDICAL BENEFITS PENSION INSURANCE AND THE OTHER IRONRICEBOWL BENEFITS PROVIDED BY CHINESE WORK UNITS BUT FESCO EMPLOYEES SAID THEIR WAGES WERE ABOUT 15 TO 20 OF WHAT THEIR EMPLOYER PAID TO FESCO SO FOREIGN OFFICES PAID A SUPPLEMENTAL SALARY DIRECTLY TO THEIR FESCO EMPLOYEES LAST YEAR THE FOREIGN BUSINESS COMMUNITY FINALLY GOT FED UP THE LAST STRAW CAME WHEN UNIFORMED AGENTS FROM THE BEIJING CITY COMMERCE BUREAU BEGAN RAIDING OFFICES TO FERRET OUT ANY NONFESCO EMPLOYEES AND CHECKING THE HOMES OF FOREIGNERS FOR NONFESCO MAIDS AND NANNIES AFTER IT RECEIVED A LETTER OF PROTEST FROM US AND FRENCH BUSINESS ASSOCIATIONS AND THE FOREIGN BANKERS ASSOCIATION FESCO ANNOUNCED IN AUGUST THAT IT HAD REFORMED NOW WHEN FOREIGN COMPANIES NEED EMPLOYEES THEY CAN FREELY ADVERTISE FOR APPLICANTS BUT ONCE THEY CHOOSE SOMEBODY THE NEW EMPLOYEE MUST JOIN FESCO FESCO SAYS IT NOW GIVES EMPLOYEES BETWEEN 40 AND 45 OF THE MONEY IT COLLECTS FROM THE FOREIGN COMPANY EARLY THIS YEAR FESCO RESPONDED TO THE COMPANIES' COMPLAINT SAYING IN A LETTER TO THE AMERICAN CHAMBER OF COMMERCE THAT MUCH OF THE CHAMBER'S ANGER RESULTED FROM A MISUNDERSTANDING THE MONEY THAT FOREIGN BUSINESS PEOPLE PAY TO FESCO ISN'T THE SALARY OF THE EMPLOYEES BUT THE OPERATING INCOME OF FESCO IT SAID FESCO SAID THAT THE COMPANY IS CASHPOORDESPITE REVENUE OF 255 MILLION IN 1992 AN INCREASE OF 53 OVER THE YEAR BEFOREBECAUSE MOST OF ITS REVENUE IS ABSORBED BY TAXES AND GOVERNMENT FEES FESCO SAID IT GETS TO KEEP ONLY 10 AS RETAINED EARNINGS SO IT IS UNABLE TO PROVIDE MANY BENEFITS IT PROMISES IN CONTRACTS WITH FOREIGN BUSINESSES FOREMOST AMONG THESE IS HOUSING FESCO NOW HAS 5870 PEOPLE WORKING IN 1350 FOREIGN REPRESENTATIVE OFFICES BUT FESCO PROVIDES HOUSING FOR ONLY 400 OF THEM FREEMARKET APARTMENT RENT IS OFTEN SEVERAL HUNDRED TIMES THAT PAID BY CHINESE WHO LIVE IN WORKUNIT PROVIDED HOUSING FESCO OFFICIALS SAY THEY ARE ALSO DIVERSIFYING AMONG THE NEW INVESTMENTS IS A 6 MILLION OFFICE BUILDING THAT WILL PROVIDE FESCO SUPERVISORS WITH BETTER WORKING CONDITIONS OTHER INVESTMENTS INCLUDE A JOINTVENTURE MOTORCYCLE HELMET FACTORY WITH A US COMPANY A JOINTVENTURE PRINTING PLANT WITH A HONG KONG CONCERN TRADING COMPANIES IN ROMANIA AND POLAND REAL ESTATE IN BELGIUM AND HOLLAND A TOURIST SERVICE A CAR REPAIR SHOP AN OFFICE EQUIPMENT SUPPLY AGENCY A GIFT SHOP IN THE CHINA WORLD TRADE CENTER FOUR OFFICES THAT SELL AIRPLANE TICKETS AND PART OWNERSHIP OF THE CITY CHAINS HOTEL IN BEIJING INDEED LIU TIANJIAN FESCO'S PERSONNEL MANAGER SAYS FESCO HOPES TO BECOME A WESTERNSTYLE HEADHUNTING FIRM FOR NOW HE SAYS FESCO IS NEEDED AS A PAY EQUALIZER THAT ABSORBS SOME OF THE HIGH WAGES THAT FOREIGN COMPANIES ARE WILLING TO PAY TO CHINESE WHITECOLLAR WORKERS IF THIS WASN'T DONE HE SAYS THE FOREIGN OFFICES WOULD PAY WAGES THAT ARE TOO FAR ABOVE THOSE PAID BY GOVERNMENT AND STATE INDUSTRY ALL THE GOOD PEOPLE WOULD RUN OVER TO THE FOREIGN COMPANIES AND WORK THERE HE SAID 9304210178 930421 MARKETING & MEDIA ABC ANSWERS THREAT BY ROSEANNE' STAR TO LEAVE NETWORK PRESIDENT SAYS NO DECISION IS SET ON NEW SHOW WHOSE FATE MS ARNOLD LINKED TO HERS BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ABC PRESIDENT ROBERT IGER IN HIS FIRST PUBLIC COMMENT SINCE THE NETWORK'S BIGGEST STAR ROSEANNE ARNOLD THREATENED TO PULL HER TOPRATED SHOW FROM ABC SAID HE DIDN'T WANT TO NEGOTIATE THE SPAT IN THE NEWS MEDIA HE THEN PROCEEDED EVER SO DIPLOMATICALLY TO DO JUST THAT THE BROUHAHA BEGAN LAST WEEK WHEN MS ARNOLD SAID LOUDLY AND PUBLICLY THAT SHE WOULD LEAVE ABC WHEN HER CONTRACT EXPIRES AFTER NEXT SEASON UNLESS ABC COMMITTED IMMEDIATELY TO RENEW THE MUCHLESSSUCCESSFUL JACKIE THOMAS SHOW STARRING HER HUSBAND TOM MR IGER WHO HAS BEEN THIS ROUTE WITH MS ARNOLD BEFORE POINTEDLY NOTED DURING A NEWS CONFERENCE THAT DESPITE MS ARNOLD'S DEMANDS HE HADN'T EVEN TALKED TO HER SINCE PRIOR TO THE END OF MARCH HE FURTHER STRESSED THAT ABC ISN'T CONTRACTUALLY REQUIRED TO MAKE THE DECISION ON JACKIE BEFORE THE END OF MAY AND WILL STICK TO THAT SCHEDULE AND IF THAT WEREN'T ENOUGH MR IGER ALSO MANAGED TO SLIP IN CASUALLY THAT IT IS THE SHOW'S PRODUCERS MARCY CARSEY AND TOM WERNER WHO CONTROL WHETHER ROSEANNE STAYS ON ABC NOT MS ARNOLD THE ABC EXECUTIVE ALSO GAVE A NONCOMMITAL QUALIFIED ASSESSMENT OF JACKIE AS A SHOW THAT HAS PERFORMED REASONABLY WELL NEITHER A FAILURE NOR A HUGE SUCCESS ABC CAN HARDLY AFFORD TO LOSE THE NO 2RANKED ROSEANNE WHICH GETS THE HIGHEST AD RATES OF ANY ENTERTAINMENT SHOW AS MUCH AS 300000 PER 30SECOND ADVERTISEMENT BUT THE CAPITAL CITIES/ABC INC UNIT MAY BE UNABLE TO AFFORD TO KEEP JACKIE WHICH AT THE ARNOLDS' INSISTENCE AIRS IN THE PLUM 930 PM TUESDAY TIME SLOT RIGHT AFTER ROSEANNE FOR ABC TO TAKE FULL FINANCIAL ADVANTAGE OF ROSEANNE FOR WHICH THE NETWORK PAYS AN ESTIMATED 2 MILLION PER EPISODE JACKIE ALSO NEEDS TO HOLD ON TO MOST OF THE ROSEANNE AUDIENCE OR AT LEAST RETAIN MORE VIEWERS THAN IT DOES BUT WHILE ROSEANNE BRINGS IN 31 OF THE AUDIENCE WATCHING TELEVISION AT THAT HOUR JACKIE CAN ONLY MUSTER 23 ESSENTIALLY LOSING ANY ADVANTAGE THAT IT GETS FROM THE ROSEANNE LEADIN JACKIE MASON'S 1989 SERIES CHICKEN SOUP WAS UNCEREMONIOUSLY CANCELED FOR THE SAME EIGHTPOINT LOSS IN AUDIENCE SHARE EVEN THOUGH IT WAS THE HIGHESTRATED NEW SHOW OF THE SEASON AT THE TIME 9304210177 930421 WHO'S NEWS ZONAGEN INC ZONAGEN INC THE WOODLANDS TEXAS ROBERT A VUKOVICH CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ROBERTS PHARMACEUTICAL CORP WAS NAMED A DIRECTOR OF THIS PHARMACEUTICAL PRODUCTS CONCERN GIVING THE BOARD SEVEN MEMBERS 9304210176 930421 WHO'S NEWS TIMES MIRROR CO TIMES MIRROR CO LOS ANGELES THE LOS ANGELES TIMES UNIT OF THIS MEDIA CONCERN SAID JESSE E LEVINE WAS NAMED CHIEF EXECUTIVE OFFICER OF THE LOS ANGELES TIMES SYNDICATE A NEWLY CREATED POSITION MR LEVINE 41 WHO HAD BEEN CHIEF OPERATING OFFICER CONTINUES AS PRESIDENT 9304210175 930421 WHO'S NEWS SIMPSON INDUSTRIES INC SIMPSON INDUSTRIES INC BINGHAM FARMS MICH KATHRYN L WILLIAMS 38 YEARS OLD VICE PRESIDENT OF FINANCE WAS NAMED CHIEF FINANCIAL OFFICER OF THE AUTO PARTS SUPPLIER 9304210174 930421 WHO'S NEWS ENRON OIL & GAS CO ENRON OIL & GAS CO HOUSTON JOHNNY A KOPECKY WAS NAMED TO THE NEW POSITION OF VICE PRESIDENT DRILLING AND PRODUCTION AT THIS OIL AND GAS EXPLORATION AND PRODUCTION COMPANY MR KOPECKY JOINED ENRON OIL & GAS IN 1991 AS A PROJECT DIRECTOR ENRON OIL & GAS IS 80OWNED BY ENRON CORP 9304210173 930421 THEY NEED SOME KIND OF WOOD THAT WILL FEND OFF BUREAUCRATS BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL GRANDMA MAY WANT TO HIDE THE CEDAR CHEST IF THE US ENVIRONMENTAL PROTECTION AGENCY COMES AROUND ACTING UNDER THE FEDERAL INSECTICIDE FUNGICIDE AND RODENTICIDE ACT THE EPA IS DEMANDING THAT SEVENTH GENERATION INC A SMALL GREEN CATALOG RETAILER REGISTER AS A PESTICIDE THE CEDAR BLOCKS IT SELLS TO REPEL MOTHS MOTHS HATE THE FRESH WOODY SCENT THE CATALOG DECLARES THE EPA ACTING ON A TIP FROM A STATE AGRICULTURE INSPECTOR ASSERTS THAT THE SMALL COLCHESTER VT COMPANY VIOLATES ENVIRONMENTAL RULES BY MAKING PESTICIDAL CLAIMS FOR THE CEDAR BLOCKS THE EPA SAYS A CLAIM APPARENTLY EVEN FOR CEDAR BLOCKS THAT A PRODUCT DETERS PESTS MEANS THAT THE ITEM MUST BE REGISTERED AS SOME KIND OF PESTICIDE AND MEET REGULATORY REQUIREMENTS THE AGENCY SAYS THREE CEDARBLOCK MAKERS HAVE ALREADY REGISTERED THEIR PRODUCTS EPA'S REGION 1 OFFICE IN BOSTON FOUND THAT SEVENTH GENERATION'S CEDAR BLOCKS 1095 A DOZEN VIOLATE REGULATIONS IN SEVERAL AREAS NO LIST OF INGREDIENTS NO LISTING OF THE PRODUCT'S TOXICITY AND INADEQUATE DIRECTIONS FOR USE THE EPA SENT A REGISTERED LETTER TO SEVENTH GENERATION ON DEC 21 1992 OUTLINING THE COMPANY'S VIOLATIONS THE EPA THEN FOLLOWED UP WITH A FEBRUARY LETTER EXPLAINING HOW SEVENTH GENERATION WITH ABOUT 12000 OF CEDAR BLOCKS IN ITS INVENTORY COULD COMPLY WITH THE REGULATIONS THE COMPANY HASN'T RUSHED TO COMPLY THIS WHOLE THING DOESN'T MAKE SENSE SAYS JEFFREY HOLLENDER CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SEVENTH GENERATION ALL WE DO IS SELL A PIECE OF WOOD THAT YOU PLACE IN A DRAWER IT'S COMPLETELY NONTOXIC AND WE DON'T ADD ANYTHING AT ALL MR HOLLENDER'S CATALOG CLAIMS THAT MOTHBALLS MADE ORIGINALLY OF CAMPHOR BUT NOW OF NAPHTHALENE ARE UNHEALTHY FOR YOU AND THE ENVIRONMENT WHILE CHEMICALS USED IN MOTHBALLS ARE CONSIDERED TO BE HIGHLY TOXIC THE EPA DOESN'T CONSIDER THE PESTICIDES DANGEROUS TO PERSONAL HEALTH OR THE ENVIRONMENT IF AGENCYAPPROVED INSTRUCTIONS ARE ADHERED TO OF COURSE EVEN EAGER REGULATORS CAN SOMETIMES SEE THE ERROR OF THEIR WAYS WE PLAN TO EVENTUALLY LAUNCH AN INITIATIVE THAT WILL EXEMPT THESE BLOCKS OF WOOD AND OTHER TYPES OF TECHNICAL PESTICIDES' SAYS A SPOKESMAN AT EPA HEADQUARTERS IN CRYSTAL CITY VA BUT YOU KNOW HOW IT IS BUREAUCRATS FIND IT HARD TO GIVE ANYTHING UP 9304210172 930421 WHO'S NEWS SOUTHEASTERN MICHIGAN GAS ENTERPRISES INC SOUTHEASTERN MICHIGAN GAS ENTERPRISES INC PORT HURON MICH ROBERT J THOMSON 65 YEARS OLD RETIRED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER BUT WILL CONTINUE AS CHAIRMAN HE IS SUCCEEDED BY WARD N KIRBY 53 FORMERLY EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER AS PRESIDENT AND CHIEF EXECUTIVE OFFICER ROBERT F CALDWELL 37 FORMERLY VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SUCCEEDS MR KIRBY 9304210171 930421 TECHNOLOGY & MEDICINE IN THE LAB CENTURYOLD SECRET AIDS CANCER RESEARCH BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL A FEW YEARS BEFORE HE GAINED EVERLASTING FAME FOR DISCOVERING IN 1910 THE FIRST DRUG TO TREAT SYPHILIS THE GERMAN MEDICAL SCIENTIST PAUL EHRLICH MADE A LESS WELLKNOWN DRUG DISCOVERY HE FOUND THAT TWO COALTAR DYES SHOWED SOME EFFECTS AGAINST A TROPICAL PARASITE THAT WAS PLAGUING GERMAN COLONISTS AND THEIR CATTLE IN EAST AFRICA UNFORTUNATELY THE RED AND BLUE DYES' EFFECTS WERE TOO WEAK TO BE USEFUL AND IN THE CATTLE THEY DISCOLORED THE MEAT WHAT EHRLICH COULDN'T HAVE KNOWN GIVEN THE STATE OF MEDICAL KNOWLEDGE AT THE TIME WAS THAT THE DYES HELD A CLUE TO A TREATMENT FOR CANCER A SECRET THAT WOULD REMAIN HIDDEN FOR ALMOST A CENTURY THE LINK BETWEEN PAUL EHRLICH AND A MODERN EXPERIMENTAL DRUG IS THE FAVORITE STORY OF CY A STEIN A 40YEAROLD CANCER RESEARCHER IT WAS SEVEN YEARS AGO DR STEIN RELATES THAT HE AND COLLEAGUES AT THE NATIONAL CANCER INSTITUTE IN BETHESDA MD BEGAN TO SUSPECT THAT AN OLD DRUG THAT GREW OUT OF EHRLICH'S RESEARCH MIGHT BE USEFUL TODAY THE DRUG SURAMIN APPEARS TO BE THE FIRST DRUG EVER TO WORK DIRECTLY AGAINST PROSTATE CANCER MOREOVER THERE ARE HINTS THE DRUG MIGHT BE USEFUL AGAINST BREAST CANCER AND PERHAPS OTHER CANCERS AND IN NEW YORK AT HIS NEW LABORATORY AT COLUMBIA UNIVERSITY'S MEDICAL SCHOOL IN UPPER MANHATTAN DR STEIN IS TRYING TO SOLVE THE SAME MYSTERY THAT HAUNTED EHRLICH AND THE GERMAN CHEMISTS IN THE EARLY YEARS OF THIS CENTURY HOW DOES THIS STRANGE DRUG WORK DR STEIN RECALLS THAT HE FIRST ENCOUNTERED SURAMIN IN 1985 WHEN HE WAS A YOUNG DOCTOR IN TRAINING AT THE NATIONAL CANCER INSTITUTE OR NCI BECAUSE THERE HAD BEEN SOME LABORATORY HINTS THAT SURAMIN MIGHT BE EFFECTIVE AGAINST THE AIDS VIRUS NCI RESEARCHERS WERE TRYING THE DRUG IN A FEW AIDS PATIENTS ONE OF WHOM IS IDENTIFIED IN THE MEDICAL LITERATURE AS BH BH WAS A VERY VERY NICE MAN IN HIS MID30S WITH A GOOD SENSE OF HUMOR THE KIND OF PERSON WHO IS A PLEASURE TO HAVE AS A PATIENT DR STEIN RECALLS AFTER A FEW MONTHS OF TAKING SURAMIN BH SUDDENLY SUFFERED A SEVERE DROP IN BLOOD PRESSURE AND DEHYDRATION AS HIS DOCTORS PUZZLED OVER BH'S ILLNESS A MEDICAL STUDENT WAYNE SAVILLE BEGAN DIGGING THROUGH THE MEDICAL LITERATURE TO FIND OUT WHAT WAS KNOWN ABOUT SURAMIN'S SIDE EFFECTS THE LITERATURE SEARCH REVEALED THAT IN THE LATE 1930S AND EARLY 1940S THERE WERE REPORTS OF SURAMIN DAMAGING THE ADRENAL GLANDS CAUSING ADDISON'S DISEASE THE DISORDER THAT PLAGUED PRESIDENT KENNEDY THE ADRENAL GLANDS WHICH RIDE ATOP THE KIDNEYS CONTROL BLOOD PRESSURE BY CONTROLLING WATER RETENTION DAMAGE TO THE GLAND FROM SURAMIN EXPLAINED BH'S SUDDEN ILLNESS HIS PROBLEMS ABATED WHEN THE DOCTORS STOPPED GIVING HIM SURAMIN BUT THE LITERATURE ALSO REVEALED THAT ANOTHER NAME FOR SURAMIN WAS BAYER 205 AND THAT STRUCK A CHORD WITH DR STEIN LIKE MANY OTHERS WHO'VE GONE INTO SCIENCE DR STEIN HAD BEEN INFLUENCED IN HIS YOUTH BY PAUL DE KRUIF'S FAMOUS 1926 BOOK THE MICROBE HUNTERS THE LAST CHAPTER IS ON EHRLICH AND IT MENTIONS BAYER 205 DR STEIN SAYS IT TURNED OUT THAT ONE OF THE REASONS EHRLICH TURNED HIS ATTENTION TO SYPHILIS WHICH LED TO HIS DISCOVERY OF COMPOUND 606 TO TREAT THE DISEASE WAS THE DISCOURAGING RESULTS HE GOT WITH THE COALTAR DYES AGAINST TRYPANOSOME AND OTHER PROTOZOAN MICROBES BUT IN 1914 CHEMISTS AT THE BAYER COMPANY PICKED UP WHERE EHRLICH LEFT OFF AND SYNTHESIZED A COLORLESS VERSION OF THE DYES CALLED BAYER 205 IT PROVED EFFECTIVE AGAINST THE PARASITE IN BOTH MAN AND BEAST AND FOR THE NEXT HALF CENTURY WAS THE MAJOR WEAPON AGAINST TRYPANOSOME INFECTIONS THROUGHOUT THE THIRD WORLD BH'S PROBLEM ALSO PROMPTED THE NCI RESEARCHERS TO SPECULATE THAT SURAMIN MIGHT SELECTIVELY AFFECT TUMORS OF THE ADRENAL GLAND THE IDEA MIGHT HAVE REMAINED SPECULATIVE EXCEPT CY CAME BACK WITH A DETAILED PLAN FOR A CLINICAL TRIAL IN ADRENAL CANCERS RECALLS DR STEIN'S FORMER BOSS AT THE NCI CHARLES MYERS HEAD OF CLINICAL PHARMACOLOGY SURAMIN WOULD HAVE GONE NOWHERE WITHOUT HIM DR MYERS SAYS OF DR STEIN TESTS IN 16 PATIENTS INDICATED THAT SURAMIN INDEED WAS ACTIVE AGAINST ADRENAL AND KIDNEY CANCERS BUT THE DRUG ALSO HAD SEVERE SOMETIMES LIFETHREATENING SIDE EFFECTS AS THE RESEARCHERS WERE STRUGGLING TO OVERCOME THE SIDEEFFECTS PROBLEM IN MID1988 A CALL CAME FROM A CANCER SPECIALIST IN LOUISIANA SHE ASKED THE NCI RESEARCHERS TO TRY SURAMIN ON A 48YEAROLD MAN WHOSE PROSTATE CANCER HAD FAILED TO RESPOND TO HORMONEBLOCKING DRUGS BLOCKING HORMONES THAT SEEM TO STIMULATE PROSTATE CANCER IS THE ONLY NONRADIATION TREATMENT AVAILABLE FOR THE MOST COMMON MALE CANCER THE PATIENT HAD A DYNAMITE RESPONSE SAYS DR STEIN HIS ENLARGED LYMPH NODES RECEDED HIS TUMORSWOLLEN PROSTATE SHRANK AND HE EVENTUALLY WENT BACK TO WORK DR MYERS LAUNCHED A TRIAL OF SURAMIN IN PROSTATE CANCER THAT RESISTED HORMONE TREATMENTS AND HAD BEGUN TO SPREAD TO OTHER TISSUES THE EARLY RESULTS IN THE FIRST 38 PATIENTS INDICATED THE SURAMINTREATED PATIENTS HAD AN 85 PROBABILITY OF LIVING AT LEAST ONE YEAR VS A 20 PROBABILITY FOR THOSE WHO DIDN'T RECEIVE THE DRUG YESTERDAY RESEARCHERS AT THE UNIVERSITY OF MARYLAND REPORTED THEIR FIRST RESULTS OF USING SURAMIN IN 33 PATIENTS WITH ADVANCED PROSTATE CANCER IN 12 OF THE PATIENTS IT WAS POSSIBLE TO MEASURE THE SIZE OF THE TUMOR AND OF THESE SIX HAD A MEASURABLE SHRINKAGE OF THE CANCER ACCORDING TO MARIO A EISENBERGER AND HIS COLLEAGUES IN A REPORT IN THE NEW ISSUE OF THE JOURNAL OF THE NATIONAL CANCER INSTITUTE ABOUT THREEQUARTERS OF THE PATIENTS HAD BLOOD TESTS INDICATING THAT THE SIZE OF THE PROSTATE GLAND HAD SHRUNK AN INDIRECT BUT HIGHLY PROMISING HINT THAT THE TUMOR HAD ALSO SHRUNK THEY REPORTED THE PROBLEM OF SIDE EFFECTS WAS GREATLY REDUCED BY A NEW COMPUTERAIDED METHOD DEVELOPED BY THE MARYLAND RESEARCHERS THAT ALLOWS THE DOSAGE OF SURAMIN TO BE TAILORED TO EACH PATIENT THE SIDEEFFECTS HOWEVER STILL PERSIST SURAMIN TREATMENT WAS LIMITED BY TOXIC EFFECTS IN 28 OF THE PATIENTS BACK IN THE LAB DR STEIN IS TRYING TO RESOLVE THE ENIGMA OF HOW SURAMIN WORKS RESEARCHERS FIRST TRIED IT IN AIDS PATIENTS BECAUSE LABORATORY EXPERIMENTS HINTED IT COULD BLOCK AN ENZYME THAT THE VIRUS USES TO REPRODUCE ITSELF YET THE DECISION TO TRY IT IN CANCER PATIENTS WAS PROMPTED IN PART BY LAB TESTS HINTING THAT SURAMIN BLOCKED SEVERAL GROWTH FACTORS PROTEINS THAT STIMULATE THE GROWTH OF CELLS THE IMPLICATIONS OF FINDING HOW SURAMIN EXERTS ITS ANTIPROLIFERATIVE EFFECTS IN THE HUMAN BODY COULD GO BEYOND CANCER DR STEIN NOTES THAT RHEUMATOID ARTHRITIS INVOLVES PROLIFERATION OF THE TISSUES THE ARTHRITIS OF ONE CANCER PATIENT TREATED WITH SURAMIN SEEMED TO CLEAR UP HE SAYS 9304210170 930421 NORTHWEST AND USAIR POST NARROWER LOSSES FOR THE FIRST QUARTER NORTHWEST AIRLINES AND USAIR GROUP INC BOOSTED BY COSTCUTTING AND HIGHER TRAFFIC SAID THEIR LOSSES NARROWED FROM LAST YEAR'S DISMAL FIRST QUARTER TOGETHER THE REPORTS FROM THE TWO STRUGGLING CARRIERS SHOWED THAT THE AIRLINE INDUSTRY IS BEGINNING TO BENEFIT FROM CUTBACKS IN CAPACITY STEADIER FARES AND A RECENT REBOUND IN TRAFFIC NORTHWEST A ST PAUL MINN UNIT OF WINGS HOLDINGS INC SAID ITS LOSS NARROWED TO 992 MILLION FROM A LOSS OF 2157 MILLION A YEAR EARLIER THE YEAREARLIER LOSS INCLUDED A LOSS OF 1088 MILLION FROM AN ACCOUNTING CHANGE THE AIRLINE SAID THE LATEST LOSS WOULD HAVE BEEN EVEN NARROWER WITHOUT A FOREIGNEXCHANGE LOSS OF 316 MILLION MAINLY FROM THE STRENGTHENING OF THE YEN AGAINST THE DOLLAR IN THE YEAREARLIER PERIOD NORTHWEST HAD A FOREIGN CURRENCY GAIN OF 381 MILLION HOWEVER NORTHWEST DOESN'T PUBLICLY REPORT THE HUGE INTEREST EXPENSE WEIGHING IT DOWN BECAUSE THE DEBT IS MOSTLY AT WINGS HOLDINGS WHICH IS CLOSELY HELD REVENUE IN THE LATEST QUARTER ROSE 16 TO 201 BILLION FROM 198 BILLION A YEAR EARLIER NORTHWEST SAID IT BENEFITED FROM A REORGANIZATION OF ITS OPERATIONS IN THE PACIFIC REGION THE ELIMINATION OF UNPROFITABLE DOMESTIC FLIGHTS AND COSTCUTTING BUT THE BIGGEST COST CUTS A PROJECTED 883 MILLION OVER THREE YEARS ARE STILL BEING NEGOTIATED WITH THE COMPANY'S LABOR UNIONS USAIR BASED IN ARLINGTON VA SAID ITS FIRSTQUARTER LOSS NARROWED TO 61 MILLION OR 165 A SHARE FROM 7383 MILLION OR 1605 A SHARE A YEAR EARLIER THE YEAREARLIER PERIOD INCLUDED A LOSS OF 6281 MILLION OR 1342 A SHARE FROM AN ACCOUNTING CHANGE FOR RETIREMENT BENEFITS REVENUE ROSE 4 TO 172 BILLION FROM 165 BILLION THE COMPANY 246OWNED BY BRITISH AIRWAYS BENEFITED FROM AN INCREASE IN ITS PASSENGER LOAD OR PERCENTAGE OF SEATS FILLED AND A SLIGHT INCREASE IN ITS YIELD OR REVENUE PER MILE FLOWN USAIR SAID IT WAS HURT IN THE LATEST QUARTER BY THE MARCH BLIZZARD WHICH RESULTED IN THE CANCELLATION OF THOUSANDS OF FLIGHTS BY USAIR AND USAIR EXPRESS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY USAIR SHARES CLOSED DOWN 25 CENTS AT 2275 9304210169 930421 PEPPERAND SALT ALL HEALTH IS BREAKING LOOSE AND SOME THIEVES ARE CAUGHT REDHANDED 9304210168 930421 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB PRESIDENT CLINTON WHO PORTRAYED HIMSELF IN THE CAMPAIGN AS A NEW JOHN KENNEDY FACED A KENNEDYESQUE CHALLENGE THIS WEEK AND BLINKED WHEN THE FEDERAL STANDOFF WITH RELIGIOUS CULTISTS IN TEXAS CAME TO A FIERY AND FATAL END MR CLINTON CONFRONTED THE SAME KIND OF CRISIS THAT PRESIDENT KENNEDY FACED AND CONQUERED THREE DECADES AGO AFTER THE BAY OF PIGS THE UNSUCCESSFUL ATTEMPT TO INVADE CUBA AN EARLY CONTROVERSIAL DECISION HAD GONE TRAGICALLY AND OBVIOUSLY WRONG AND THE QUESTION ON THE NATION'S MIND WAS HOW THE YOUNG NEW PRESIDENT WOULD REACT FOR MR CLINTON THE REAL PROBLEM ISN'T THAT THE JUSTICE DEPARTMENT'S STRATEGY FOR ENDING THE SIEGE BADLY MISFIRED RATHER THE PROBLEM IS THAT THE FIRST PICTURE AMERICANS SAW WAS OF THE PRESIDENT STRIKING DISTANCE BETWEEN HIMSELF AND THE GOVERNMENT'S ACTIONS MR CLINTON'S POSTURE AFTER THE OPERATION WENT WRONG IT WAS MORE THAN NINE HOURS AFTER THE FIRE BEFORE HE EVEN SPOKE WITH ATTORNEY GENERAL JANET RENO STOOD IN STARK CONTRAST TO THE ATTORNEY GENERAL'S BLUNT AND BRAVE WILLINGNESS TO DECLARE THE BUCK STOPS WITH ME ONLY YESTERDAY DID MR CLINTON MOVE TO CHANGE THE PERCEPTION BY TAKING FULL RESPONSIBILITY BY DOING SO HE WENT SOME DISTANCE TOWARD RECOVERING PROVIDED HE MOVES ON QUICKLY FROM HERE ALL TOLD THE WACO DISASTER BEARS EERIE SIMILARITIES TO THE BAY OF PIGS FIASCO WHICH CAME AT PRECISELY THE SAME POINT IN THE KENNEDY PRESIDENCY MIDAPRIL OF THE FIRST YEAR IN OFFICE MR KENNEDY TOO WAS THE VICTIM OF PLANS DEVISED BY CAREER BUREAUCRATS HE HADN'T PUT INTO POSITIONS OF RESPONSIBILITY HE TOO WAS INITIALLY INCLINED TO BLAME THEM FOR THE BLUNDER BUT ON REFLECTION HE DECIDED TO SHOULDER RESPONSIBILITY ENTIRELY HIMSELF IN PUBLIC THAT DECISION ULTIMATELY STRENGTHENED AMERICANS' CONFIDENCE IN HIM AND GOT HIS INFANT PRESIDENCY THROUGH ITS HOUR OF PERIL THE STRANGE CASE OF THE BRANCH DAVIDIANS HARDLY RIVALS THE ILLFATED CUBAN INVASION AS AN EVENT OF HISTORICAL SIGNIFICANCE OF COURSE STILL THE PRECEDENT IS RELEVANT MR CLINTON'S PUBLIC REACTIONS STRONGLY IMPLIED THAT HE HAD RESERVATIONS ABOUT THE OPERATION WHEN HE APPROVED IT JUST AS PRESIDENT KENNEDY DID WHEN HE SIGNED OFF ON THE PLANNED CUBAN INVASION BUT SUCH RESERVATIONS SOMETIMES CAN AND SHOULD BE BURIED OUT OF SIGHT MR CLINTON MOVED RAPIDLY ENOUGH TO START CHANGING THE PUBLIC PERCEPTION BY MAKING IT CLEAR THAT HE ISN'T TRYING TO LAY BLAME AT THE FEET OF HIS NEW ATTORNEY GENERAL WHO AFTER ALL HAS BEEN IN HER JOB FOR AN EVEN SHORTER TIME THAN HE HAS BEEN IN HIS SETTING THE PUBLIC PERCEPTION RIGHT IS CRUCIAL FOR MR CLINTON BECAUSE THE WACO INFERNO CAME AT A TIME WHEN HE ALREADY WAS HEADING THROUGH A ROUGH PATCH REPUBLICANS HAVE BUSHWHACKED HIS ECONOMIC STIMULUS PACKAGE NONE OF THE EASY OPTIONS FOR STOPPING SERBIAN AGGRESSION IN BOSNIA HAVE WORKED IT'S BECOMING INCREASINGLY LIKELY THAT MR CLINTON WILL TAKE HEAT FROM BOTH SIDES OF THE DEBATE WHEN HE FINALLY FIGURES OUT A COMPROMISE ON HOMOSEXUALS IN THE MILITARY AND NOW FAIRLY OR NOT HIS ADMINISTRATION IS GOING TO BE DOGGED BY THE STANDOFF WITH RELIGIOUS CULTISTS IN TEXAS AMERICANS UNDERSTAND THAT THE ULTIMATE BLAME FOR 86 DEATHS LIES IN DAVID KORESH'S CRUEL FANATICISM NOT BLUNDERS BY THE FEDERAL BUREAU OF INVESTIGATION EVEN SUCH USUAL CLINTON CRITICS AS THE REV PAT ROBERTSON AND RUSH LIMBAUGH YESTERDAY STRESSED MR KORESH'S CULPABILITY BUT EARLY IMPRESSIONS MOLD LASTING OPINIONS ABOUT AMERICAN PRESIDENTS THE CLINTON TEAM DOESN'T WANT THE IMPRESSION THAT THE ONLY ADMINISTRATION OFFICIAL WILLING TO REPEAT HARRY TRUMAN'S MAXIM THAT THE BUCK STOPS HERE IS THE ATTORNEY GENERAL NOW MR CLINTON WANTS TO CHANGE THE SUBJECT AND MOVE ON WHETHER HIS CURRENT TROUBLES ARE JUST A FEW BUMPS IN THE POLITICAL ROAD OR THE BEGINNING OF A LONG TRIP DOWNHILL DEPENDS IN LARGE PART ON HIS ABILITY TO SOON SHIFT TO NEW POLITICAL GROUND THAT HE CLAIMS AS HIS OWN FORTUITOUSLY HE'S SOON GOING TO BE ABLE TO CHANGE THE SUBJECT TO HEALTH CARE A TOPIC THAT GIVES HIM THE CHANCE TO RECLAIM CONTROL OF A POLITICAL AGENDA THAT HAS BEEN GRADUALLY SLIPPING AWAY FROM HIM HEALTHCARE REFORM IS AN ISSUE SO MAMMOTH THAT IT HAS THE POTENTIAL TO WIPE ALL OTHERS OFF THE RADAR SCREEN FOR A TIME MR CLINTON'S PLAN FOR A REVOLUTION IN HEALTH CARE ALWAYS WAS GOING TO BE IMPORTANT TO THE SUCCESS OF HIS PRESIDENCY HIS CURRENT PROBLEMS MAKE IT CRUCIAL THAT HE PULL ITS PRESENTATION OFF WELL MOST IMPORTANTLY HEALTH CARE TOUCHES PEOPLE'S REAL LIVES THOSE ARE THE KINDS OF THINGS PRESIDENT CLIINTON NEEDS TO GET AMERICANS THINKING ABOUT NOW RATHER THAN THE BIZARRE STORY OF A TEXAS RELIGIOUS CULT 9304210167 930421 GROWING POT AT HOME OFTEN TURNS OUT TO BE A REAL BUST POLICE RAID BASEMENTS CLOSETS WHERE FOLKS PLANT WEED TO AVOID RISKS AND ARREST BY DANIEL MACHALABA STAFF REPORTER OF THE WALL STREET JOURNAL INDIANAPOLIS LIKE A NUMBER OF AMERICANS JOHN OTTE ENJOYS AN EVENING TOKE BUT HE DOESN'T WANT ANYTHING TO DO WITH THE DRUG TRADE SO TWO YEARS AGO HE BOUGHT A HIGHINTENSITY LAMP AT A GARDENSUPPLY STORE GOT SOME SEEDLINGS FROM FRIENDS AND TURNED A BASEMENT ROOM INTO A MARIJUANA GARDEN I FELT IT WAS SAFER TO GROW IT IN THE PRIVACY OF MY HOME THAN VISIT DRUG DEALERS SAYS MR OTTE A 29YEAROLD COPYMACHINE REPAIRMAN BUT THE GARDENSUPPLY SHOP HE PATRONIZED CIRCLE CITY HYDROPONICS WAS RUN BY UNDERCOVER DRUG AGENTS OF THE INDIANA STATE POLICE THEY TOOK DOWN LICENSEPLATE NUMBERS AS CUSTOMERS DROVE AWAY LAST APRIL MR OTTE HIS WIFE AND THREEYEAROLD SON WERE AWAKENED BY A KNOCK ON THEIR FRONT DOOR POLICE UPROOTED 17 MARIJUANA PLANTS GROWING IN THE OTTES' BASEMENT AND THEY ARRESTED MR OTTE WHO WITH DOZENS OF OTHER CIRCLE CITY CUSTOMERS WAS BROUGHT HANDCUFFED TO A NATIONAL GUARD ARMORY FINGERPRINTED AND MARCHED IN FRONT OF TV NEWS CAMERAS HOMES LIKE THE OTTES' ARE BECOMING THE LATEST BATTLEGROUND IN THE WAR ON DRUGS SEEKING TO AVOID VISITS TO DRUG DEALERS MANY POT SMOKERS FIGURE IT IS SAFER CHEAPER AND EASIER TO GROW THEIR OWN SUPPLY OF THE ILLEGAL DRUG SOME TEND A FEW PLANTS IN THEIR ATTICS BASEMENTS OR CLOSETS OTHERS SET UP POWERFUL GROW LAMPS AND IRRIGATION SYSTEMS THAT GIVE OFF SO MUCH HEAT AND MOISTURE THAT PARTS OF THEIR HOMES SEEM LIKE TROPICAL RAIN FORESTS THEY ARE TRYING TO ASSURE THEIR PRIVACY AND STAY OUT OF THE CRIMINAL SCENE SAYS ED ROSENTHAL AUTHOR OF CLOSET CULTIVATOR AND OTHER BOOKS ABOUT GROWING MARIJUANA AT HOME BUT HE SAYS THAT PEOPLE CAUGHT CULTIVATING FACE SEVERE PENALTIES THAT CAN RUIN THEIR LIVES THE CONSEQUENCES CAN INCLUDE FELONY CONVICTIONS AND PRISON TERMS LAWENFORCEMENT AGENTS SAY THEY DON'T DELIBERATELY TARGET SMALLTIME GROWERS BUT THAT THEY OFTEN FALL INTO THEIR NETS IN ANY CASE GROWING MARIJUANA IS ILLEGAL SAYS LARRY M HAHN A DRUG ENFORCEMENT ADMINISTRATION OFFICIAL IN ARLINGTON VA WHETHER YOU'RE GROWING FIVE PLANTS OR 5000 PLANTS HAROLD WELTMAN A KINGSTON PA DENTIST LEARNED THAT FIRST HAND I NEVER DREAMT I WAS IN DANGER HE SAYS BUT WHEN HE AND HIS WIFE WERE VACATIONING IN FLORIDA LAST YEAR THEIR HOUSESITTER FOUND THE WELTMANS' DOOR STUCK FEARED BURGLARS WERE PRESENT AND CALLED THE POLICE INSTEAD OF INTRUDERS POLICE FOUND 45 MARIJUANA PLANTS IN THE BASEMENT ARRESTED IN FLORIDA THE WELTMANS WERE SENT HOME IN HANDCUFFS TO STAND TRIAL DR WELTMAN ASSERTED THAT HIS DENTAL LICENSE ALLOWED HIM TO GROW CANNABIS FOR RESEARCH PURPOSES BUT THE LUZERNE COUNTY JURY WASN'T BUYING THE WELTMANS WERE CONVICTED OF CRIMINAL CHARGES FOR THE MANUFACTURE OF MARIJUANA THEY ARE APPEALING THE CONVICTIONS BUT MEANWHILE THE WELTMANS SAY THEY HAVE PAID 75000 TO THE FEDERAL GOVERNMENT TO SETTLE FORFEITURE PROCEEDINGS ON THEIR HOME ABANDONED BY ALL BUT A FEW PATIENTS DR WELTMAN 61 HAS TAKEN A JOB IN A CHOCOLATE FACTORY TO HELP PAY BILLS WE'RE OUTCASTS IN OUR COMMUNITY HE SAYS THE DEA SAYS IT DOESN'T KNOW HOW MANY PEOPLE GROW POT IN THEIR HOMES BUT THAT THE NUMBER IS PROLIFERATING MR ROSENTHAL THE AUTHOR PUTS HOMEGROWERS AT BETWEEN 500000 AND ONE MILLION THE NATIONAL ORGANIZATION FOR THE REFORM OF MARIJUANA LAWS SAYS IT IS BETWEEN ONE MILLION AND TWO MILLION THE DEA AND NORML AGREE THAT IT IS THE GOVERNMENT'S SUCCESS IN COMBATING MARIJUANA SMUGGLERS AND OUTDOOR POT FARMERS THAT HAS DISRUPTED SUPPLIES SENT PRICES SOARING AND GIVEN POT SMOKERS AN ECONOMIC INCENTIVE TO GROW THEIR OWN HIGHPOTENCY CALIFORNIA SINSEMILLA THAT SOLD FOR BETWEEN 125 AND 250 AN OUNCE 10 YEARS AGO NOW SELLS FOR BETWEEN 300 AND 400 ACCORDING TO HIGH TIMES MAGAZINE HOME CULTIVATORS FIGURE THEY CAN AVOID SUCH PRICES BY INVESTING ABOUT 500 IN SEEDS BUCKETS LIGHTS TIMERS FERTILIZERS FANS AND VENTS TO GROW THEIR OWN BUT IT ISN'T JUST ABOUT ECONOMICS POT SMOKERS WITH JOBS FAMILIES AND HOMES DON'T WANT TO BUY FROM DEALERS BECAUSE OF MY SOCIAL POSITION I DIDN'T WANT TO MAKE CONTACT WITH THE DRUG CULTURE SAYS DONALD VARDIMAN A PSYCHOLOGY PROFESSOR AT WILLIAM PATERSON COLLEGE IN WAYNE NJ WHOSE POT PLANTS WERE HIDDEN BEHIND A WALL IN HIS ATTIC EVEN MY WIFE DIDN'T KNOW HE SAYS BUT HIS SECRET GOT OUT PROF VARDIMAN SAYS HE HAD ORDERED HIGHINTENSITY LAMPS FROM A FIRM WHOSE RECORDS LATER WERE SEIZED BY DEA AGENTS HE HAS SINCE SERVED HIS SENTENCE A YEAR'S PROBATION AND 1000 FINE JAMES GETMAN A STATE HIGHWAY INSPECTOR IN DAVENPORT IOWA DEVOTED 60 SQUAREFEET OF HIS BASEMENT TO POT ACTING ON A TIP POLICE SWOOPED IN LAST SUMMER THE POLICE INSIST HE WAS SELLING POT MR GETMAN SAYS HE SMOKED WHAT HE GREW AND SHARED THE REST WITH FRIENDS AT PARTIES UNDER THE LAW THAT CONSTITUTES DELIVERY AFTER PLEADING GUILTY TO STATE CRIMINAL DRUG CHARGES MR GETMAN 35 LOST HIS JOB PAID 8000 IN FINES AND BEGAN FOUR YEARS' PROBATION HE SAYS HE IS NOW CONTESTING A 30000 BILL FOR NONPAYMENT OF IOWA'S 5AGRAM ILLEGALDRUG TAX I WAS AWARE OF THE CRIMINAL PENALTIES FOR HOMEGROWN POT SAYS MR GETMAN BUT I WASN'T AWARE THEY WERE GOING TO TRY TO TAKE EVERYTHING I OWN LAWENFORCEMENT OFFICIALS SAY THEY DIDN'T PAY MUCH ATTENTION TO HOMEGROWERS UNTIL THEY FOUND SOME BIG COMMERCIAL OPERATIONS SEVERAL YEARS AGO ONE HAD 26000 MARIJUANA PLANTS CRAMMED INTO FOUR HOUSES IN ARIZONA AND CALIFORNIA WE WERE WORRIED ABOUT COCAINE IN THE 1980S AND THIS WAS HAPPENING RIGHT UNDER OUR NOSES SAYS SGT TIMOTHY MCCLURE AN INDIANA STATE POLICE DETECTIVE AUTHORITIES RAIDED MORE THAN 3800 INDOOR GROWING SITES NATIONWIDE LAST YEAR EQUIVALENT TO ABOUT ONE RAID EVERY THREE HOURS THAT WAS TRIPLE THE NUMBER OF RAIDS IN 1988 THE DEA SAYS AND OFFICIALS PLAN TO STEP UP THE PRESSURE FIFTYEIGHT OF THE SEIZURES LAST YEAR STEMMED FROM CIRCLE CITY HYDROPONICS THE GARDENSUPPLY SHOP RUN BY INDIANA POLICE SGT MCCLURE SAYS HE GOT THE IDEA FOR THE STING A FEW YEARS AGO AFTER HE WORKED WITH THE DEA ON AN INVESTIGATION OF INDOORGARDENING STORES AND THEIR CUSTOMERS HE SAYS UNDERCOVER AGENTS FILMED CIRCLE CITY CUSTOMERS BUYING LIGHTS AND OTHER GEAR CHECKED THEIR UTILITY RECORDS FOR EXCESSIVE ELECTRIC USAGE AND AIMED THERMAL IMAGERS AT THEIR HOMES TO DETECT UNUSUAL HEAT THE INDIANA POLICE STING DUBBED OPERATION SMOKESCREEN WAS IN SOME WAYS DISAPPOINTING MOST OF THE PEOPLE ARRESTED WERE SMALLTIME GROWERS WE THOUGHT WE WOULD GET MORE LARGE COMMERCIAL OPERATIONS SAYS SGT MCCLURE AS DEFENSE ATTORNEY ANDREW MATERNOWSKI PUTS IT THEY WENT HUNTING FOR BEAR AND GOT CHIPMUNK THE CRACKDOWN INFURIATES MR OTTE THE COPYMACHINE REPAIRMAN THEY JUST THREW MY LIFE AROUND AND DIDN'T ACCOMPLISH A THING HE SAYS MR OTTE SAYS HE HAS GONE BACK TO BUYING POT FROM DEALERS ALAN JOHNSON SAYS HE HAD SOME POT PLANTS GROWING IN A LOCKED BASEMENT CABINET WHEN INDIANA STATE TROOPERS ARRIVED ALTHOUGH CRIMINAL CHARGES AGAINST MR JOHNSON WERE DROPPED WORD OF HIS ARREST REACHED HIS EMPLOYER ELI LILLY & CO THE LEGAL DRUG MAKER WHICH FIRED HIM FROM HIS 72000AYEAR QUALITYCONTROL JOB THE WHOLE THING WAS RIDICULOUS IT WAS JUST STUFF FOR PERSONAL USE AND IT WAS BLOWN WAY OUT OF PROPORTION SAYS MR JOHNSON HE HAS SINCE TAKEN A LOWERPAYING JOB AT ANOTHER COMPANY ELI LILLY DECLINES TO COMMENT WILLIAM BEAMAN JR 29 A DAVENPORT IOWA MAINTENANCE MAN SAYS HIS BASEMENT POT GARDEN WAS WELL HIDDEN BEHIND A MOVABLE BOOKCASE IN FRONT OF A TRAP DOOR NEAR HIS DOBERMAN PINSCHER'S BED BUT AFTER A FIGHT WITH HIS GIRLFRIEND SHE TIPPED OFF POLICE HE SAYS SO FAR HIS ARREST HAS COST HIM MORE THAN 10000 IN LEGAL FEES FINES AND STATE DRUG TAXES FOR ALL THE MONEY I SPENT HE SAYS I COULD HAVE BOUGHT A LOT OF POT 9304210166 930421 EXECUTIVE PAY A SPECIAL REPORT NOW AND THEN SHAREHOLDERS GAIN MUCH FROM NEW PAYDISCLOSURE RULES BUT THEY ALSO LOSE A LITTLE SHAREHOLDER PROXY STATEMENTS LOOK RADICALLY DIFFERENT THIS SPRING THE SECURITIES AND EXCHANGE COMMISSION NOW REQUIRES US BUSINESSES TO TELL STOCKHOLDERS A LOT MORE ABOUT TOP EXECUTIVE PAY AND IN MORE READABLE FASHION FOUR CHARTS IN THE PROXY STATEMENT EXPLAIN COMPENSATION FOR THE FIVE HIGHESTPAID EXECUTIVES A SEPARATE GRAPH TRACKS A COMPANY'S STOCK AND DIVIDEND PERFORMANCE THE BOARD'S COMPENSATION COMMITTEE MUST GIVE A DETAILED SIGNED RATIONALE FOR TOP EXECUTIVE PAY AS A RESULT INVESTORS CAN BETTER GRASP WHETHER A COMPANY'S PERFORMANCE JUSTIFIES RICH PAY PACKAGES FOR SENIOR MANAGEMENT AT THE SAME TIME CONSIDERABLE LEGAL JARGON HAS DISAPPEARED FROM PROXY STATEMENTS BUT SO HAVE CERTAIN INSIGHTS THAT CORPORATE AMERICA FORMERLY OFFERED ABOUT EXECUTIVEPAY PRACTICES A COMPARISON OF AMERITECH CORP'S 1993 PROXY STATEMENT WITH LAST YEAR'S SHOWS WHAT SHAREHOLDERS HAVE GAINED AS WELL AS HAVE LOST SOME EXECUTIVEPAY FIGURES PREVIOUSLY SCATTERED THROUGHOUT THE PROXY STATEMENT NOW APPEAR IN THE SUMMARY COMPENSATION TABLE INVESTORS GAIN A BETTER SENSE OF TOP EXECUTIVES' REWARDS THE NEW SEC RULES ARE A STEP FORWARD IN PROVIDING A MORE MEANINGFUL DOCUMENT SAYS A SPOKESMAN FOR AMERITECH A REGIONAL BELL COMPANY IN CHICAGO BUT TAKE A CLOSER LOOK THREE VICE CHAIRMEN WHO EARNED ENOUGH MONEY TO LAND THEM IN A SIMILAR TABLE LAST YEAR DON'T APPEAR ANYWHERE IN THIS YEAR'S PROXY STATEMENT ROBERT L BARNETT WILLIAM H SPRINGER AND ORMAND J WADE RETIRED DURING 1992 MR WADE LEFT DEC 30 HIS COLLEAGUES DEPARTED SEVERAL MONTHS EARLIER UNDER THE SEC'S OLD RULES MR WADE UNDOUBTEDLY WOULD HAVE STILL APPEARED IN THE LINEUP AS ONE OF AMERITECH'S FIVE HIGHESTPAID EXECUTIVES NOW AMERITECH MUST REVEAL THE PAY OF SUCH EXECUTIVES ONLY IF THEY WERE ON THE PAYROLL DEC 31 THERE'S SOME LOGIC TO THAT NEW REQUIREMENT BECAUSE SHAREHOLDERS PRIMARILY CARE ABOUT A COMPANY'S CURRENT MANAGEMENT TEAM SAYS ERIC SCOONES A PRINCIPAL WITH CONSULTANTS WILLIAM T MERCER INC IN NEW YORK BUT HOW MUCH DID MR WADE EARN LAST YEAR AND DID AMERITECH GIVE HIM A LUCRATIVE CONSULTING CONTRACT OR OTHER FAREWELL GIFT BEFORE HE ENDED A CAREER THAT BEGAN IN 1961 SHAREHOLDERS ARE LEFT IN THE DARK UNDER THE NEW SEC RULES WE DON'T HAVE TO SAY ANYTHING ABOUT MR WADE OR OTHER FORMER VICE CHAIRMEN THE AMERITECH SPOKESMAN SAYS MR SCOONES SAYS HE WOULDN'T BE SURPRISED IF THE SEC REVISITS THIS ISSUE WHEN THE CURRENT PROXY SEASON ENDS THEY MAY DECIDE THAT OMISSION IS A MISTAKE HE ADDS NOW GOOD NEWS FOR AMERITECH SHAREHOLDERS A COLUMN CALLED LTIP PAYOUTS GIVES THEM FULLER INFORMATION ABOUT SENIOR EXECUTIVES' COMPENSATION UNDER A LONGTERM INCENTIVE PLAN WILLIAM L WEISS THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER RECEIVED PERFORMANCE UNITS WORTH 985991 HALF IN CASH AND HALF IN COMMON STOCK BASED ON A FIVEYEAR PROGRAM BEGUN IN 1988 A FOOTNOTE SAYS THE AMOUNTS ARE BASED ON 72 A SHARE BY CONTRAST AMERITECH'S 1992 PROXY STATEMENT MERELY GIVES THE NUMBER OF PERFORMANCE UNITS DISTRIBUTED TO MR WEISS AND OTHER EXECUTIVE OFFICERS DURING 1991 THE EARLIER PROXY STATEMENT IGNORES THE UNITS' VALUE THIS IS AN EXAMPLE OF HOW THE DISCLOSURE RULES HELP SAYS ROBBI FOX AN EXECUTIVECOMPENSATION RESEARCHER FOR CONSULTANTS HEWITT ASSOCIATES IN LINCOLNSHIRE ILL THE NEW DISCLOSURE RULES ALSO GIVE SHAREHOLDERS MORE INFORMATION ABOUT CERTAIN EXECUTIVE PERQUISITES BUT NOT OTHERS FOR INSTANCE ANOTHER FOOTNOTE IN THE LATEST AMERITECH PROXY STATEMENT REPORTS THAT LOUIS J RUTIGLIANO VICE CHAIRMAN GOT SOME PERKS WORTH 58902 IN 1992 AMONG THEM WERE FINANCIAL COUNSELING VALUED AT 21205 AND CLUB MEMBERSHIPS VALUED AT 30040 OTHER SENIOR EXECUTIVES' PERKS INCLUDED MEDICAL CHECKUPS AND COMPANY CARS LAST YEAR'S PROXY STATEMENT LISTED FEWER SOCALLED NONCASH SERVICES FOR EXECUTIVES AND DIDN'T SPELL OUT THEIR VALUE ON THE OTHER HAND THE 1992 PROXY STATEMENT DESCRIBED TWO OTHER PERKS FOUND NOWHERE IN THIS YEAR'S PROXY AMERITECH'S DISABILITYPAY PLAN AND ITS RELOCATION POLICY A DISABLED OFFICER RECEIVES FULL SALARY FOR UP TO A YEAR FOLLOWED BY 60 OF FINAL SALARY UNTIL AGE 65 THE EARLIER PROXY STATEMENT SAID AMONG OTHER THINGS THE RELOCATION POLICY OFFERS A TRANSFERRED EXECUTIVE A HOMEPURCHASE DIFFERENTIAL BASED ON HIGHER HOUSING COSTS IN A NEW AREA THE NEW PAYDISCLOSURE RULES PERMIT OMISSION OF THESE BENEFITS BECAUSE NONE OF AMERITECH'S HIGHEST EXECUTIVES USED THEM IN 1992 THE SEC DEMANDS FULLER DISCLOSURE OF WHAT THEY GOT PAIDBUT FAR LESS ABOUT WHAT THEY MIGHT BE PAID THE UPSHOT SHAREHOLDERS DON'T HAVE A CLEAR PICTURE OF EVERYTHING THAT IS IN PLACE AT A COMPANY IN TERMS OF SENIOR OFFICERS' POTENTIAL COMPENSATION HEWITT'S MS FOX SAYS THE SPLIT DOLLAR INSURANCE PREMIUM VALUE IN THIS YEAR'S TABLE LOOKS LIKE A PRETTY SIZABLE SUM 561604 FOR MR WEISS LAST YEAR FOR EXAMPLE BUT THE FIGURE MAY UNNECESSARILY ALARM INVESTORS COMPENSATION CONSULTANTS SAY AMERITECH'S EXPLANATION REQUIRED BY THE SEC ISN'T VERY CLEAR A FOOTNOTE READS SPLIT DOLLAR INSURANCE REPRESENTS THE ACTUARIAL VALUE OF THE BENEFIT TO THE EMPLOYEE OF THE CURRENT YEAR'S INSURANCE PREMIUM PAID BY THE COMPANY IN EXCESS OF THAT REQUIRED TO FUND THE DEATH BENEFIT UNDER THE POLICY CUMULATIVE NET LIFE INSURANCE PREMIUMS ARE RECOVERED BY THE COMPANY AT THE LATER OF RETIREMENT OR 15 OR IN SOME CASES 10 YEARS ROUGH TRANSLATION AMERITECH PAYS LIFEINSURANCE PREMIUMS BUT EXPECTS TO RECOVER MOST OF THE MONEY LATER THE 561604 FIGURE MAY OVERSTATE THE PREMIUM'S COST TO THE COMPANY SAYS MERCER'S MR SCOONES BECAUSE AMERITECH ULTIMATELY WILL GET BACK WHATEVER AMOUNT OF PREMIUM THEY PAY ABOVE THE DEATH BENEFIT BY COMPARISON LAST YEAR'S PROXY STATEMENT LACKED ANY FIGURES ABOUT CORPORATE PREMIUM PAYMENTS IT SIMPLY SAID THAT OFFICERS CAN PURCHASE LIFEINSURANCE COVERAGE EQUAL TO ABOUT SIX TIMES THEIR ANNUAL SALARY PLUS ONE TIMES THEIR ANNUAL BONUS TARGET AND THAT AMERITECH SPLITS PREMIUM PAYMENTS WITH EACH OFFICER DURING THE TERM OF THIS PROGRAM IN THE 1992 PROXY STATEMENT AMERITECH REPORTED THAT 18 EXECUTIVE OFFICERS EARNED SALARIES TOTALING ABOUT 46 MILLION AND BONUSES TOTALING ABOUT 27 MILLION DURING 1991 MORE THAN HALF OF THE TOTAL REFLECTED CASH COMPENSATION PAID TO THE COMPANY'S FIVE HIGHEST OFFICIALS BUT THIS YEAR AMERITECH SHAREHOLDERS LEARN NOTHING ABOUT PAY FOR ANYONE BELOW THE TOP FIVE OFFICERS EVEN THOUGH THE LOWERLEVEL EXECUTIVE OFFICERS ACCOUNTED FOR ALMOST 50 OF THE COMPANY'S CASH COMPENSATION FOR SENIOR EXECUTIVES THE SEC SAYS THAT THE OLD RULES FAILED TO PROVIDE VERY HELPFUL INFORMATION BECAUSE EACH COMPANY COULD DECIDE WHICH MANAGERS WERE EXECUTIVE OFFICERS MAKING COMPARISONS MEANINGLESS BUT SOME CONSULTANTS SAY THAT SHAREHOLDERS LOST OUT IN THE PROCESS A LOT OF MONEY IS BEING PAID TO THIS LARGE GROUP OF EXECUTIVES THE CONSULTANTS SAY BUT SHAREHOLDERS HAVE NO SENSE OF THE MAGNITUDE ALL OF A SUDDEN YOUR REPORTED TOTALS ARE NEARLY HALF OF WHAT THEY WERE BEFORE SAYS JUDITH FISCHER PUBLISHER OF EXECUTIVE COMPENSATION REPORTS A NEWSLETTER IN FAIRFAX STATION VA IT DOESN'T MAKE SENSE TO ME SEE ACCOMPANYING ILLUSTRATIONS WSJ APRIL 21 1993 9304210165 930421 EXECUTIVE PAY A SPECIAL REPORT PARALLEL LINES COMPANIES CREATE NEW WAYS TO PROMOTE EMPLOYEES WITHOUT MAKING THEM BOSSES BY GILBERT FUCHSBERG WANT TO GET AHEAD EARN A TOP SALARY AND NICER PERQUISITES THEN PURSUE A JOB IN MANAGEMENT THAT HAD LONG BEEN A CARDINAL RULE OF CORPORATE LIFE BUT NOT ANY MORE IN A STRATEGY THAT PROMISES TO RESHAPE THE WORLD OF CAREERS AND COMPENSATION MORE BIG COMPANIES ARE DESIGNING WAYS TO PROMOTE AND REWARD PEOPLE WITHOUT MAKING THEM BOSSES THE TREND IS GENERATING FRESH OPPORTUNITIES AND HIGHER SALARIES FOR A WIDE RANGE OF OCCUPATIONS IT ALSO IS CREATING A NEW SET OF CORPORATE LADDERS THAT ASCEND INTO HIERARCHIES OF RELATIVELY UNTESTED TITLES AND POSITIONS RATHER THAN INTO MANAGEMENT RANKS AT PRICE WATERHOUSE IN NEW YORK FOR INSTANCE SOME ACCOUNTANTS WHO DON'T MAKE PARTNER AND PREVIOUSLY WOULD HAVE BEEN FORCED OUT CAN NOW REMAIN IN THE NEW POSITION OF DIRECTOR EATON CORP IN CLEVELAND RECENTLY GRANTED THE TITLE OF INTERNAL CONSULTANT TO SOME SENIOR STRATEGIC PLANNERS TAX SPECIALISTS AND LAWYERS AND IS PAYING THEM MANAGEMENTLEVEL SALARIES HERSHEY FOODS CORP IN HERSHEY PA IS TAKING THE SAME APPROACH WITH TOP HUMANRESOURCES PROFESSIONALS COMPANIES ARE THROWING OUT THE OLD NOTION THAT THE MORE PEOPLE YOU MANAGE THE MORE IMPORTANT YOUR JOB IS AND THE MORE YOU GET PAID SAYS GEOFF WIEGMAN DIRECTOR OF THE COMPENSATION PRACTICE AT BUCK CONSULTANTS' STAMFORD CONN OFFICE NOW THEY'RE SIMPLY PAYING PEOPLE FOR WHAT THEY DO AND WHAT THEY KNOW AND PAYING THEM MORE TO CONTINUE TO DO IT IT ISN'T ENTIRELY NEW FOR MAJOR EMPLOYERS TO OFFER SPECIAL STATUS TO CERTAIN NONMANAGEMENT EMPLOYEES DUBBED KNOWLEDGE WORKERS AND INDIVIDUAL CONTRIBUTORS PHARMACEUTICAL MAKERS INCLUDING MERCK & CO AND TECHNOLOGYORIENTED COMPANIES SUCH AS INTERNATIONAL BUSINESS MACHINES CORP AND AMERICAN TELEPHONE & TELEGRAPH CO HAVE LONG MAINTAINED TECHNICAL CAREER LADDERS THAT STEER CLEAR OF MANAGEMENT A COMPANY'S BEST SCIENTISTS ENGINEERS AND RESEARCHERS ADVANCE BY GAINING TOP SALARIES AND SPECIAL TITLES SUCH AS FELLOW AND SENIOR SCIENTIST THEIR PAY AND PRESTIGE ARE COMPARABLE TO THOSE OF MANAGERS WITHOUT THE CORRESPONDING AUTHORITY BUT NOW THESE DUAL CAREER LADDERS ARE SPREADING TO A GROWING NUMBER OF PROFESSIONS EVERYTHING FROM CUSTOMER SERVICE TO SALES AND INFORMATION SYSTEMS A KEY REASON MORE COMPANIES ARE SLASHING LAYERS OF MANAGEMENT JOBS TO CUT COSTS THE NEW LADDERS ALLOW BUSINESSES TO RECRUIT AND RETAIN TALENT EVEN AS THEY CUT TRADITIONAL ADVANCEMENT OPPORTUNITIES COMPANIES AREN'T PARTICULARLY CHARITABLE OR INTERESTED IN EMPLOYEE SATISFACTION BUT THEY'RE NOT STUPID EITHER SAYS MARSHA CAMERON A COMPENSATION EXPERT WITH CONSULTANTS WYATT CO IN NEW YORK THEY REALIZE THEY'VE CREATED BIG PRODUCTIVITY AND MORALE PROBLEMS BY REDUCING CAREER OPTIONS AND THEY'VE GOT TO SOLVE THEM AMERICAN EXPRESS CO FOR EXAMPLE IS DEVELOPING ADDITIONAL POSITIONS AND INCENTIVES FOR A HOST OF EMPLOYEES OUTSIDE THE TECHNICAL ARENA AMONG THEM ARE RISKMANAGEMENT AND CREDIT ANALYSTS WHO PREVIOUSLY ENJOYED FEW OPPORTUNITIES TO SIGNIFICANTLY INCREASE THEIR PAY WITHOUT SEEKING MANAGEMENT POSTS LIKE MANY ORGANIZATIONS WE ARE LOOKING TO PROVIDE EMPLOYEES OPPORTUNITIES FOR GROWTH WITHOUT THINKING THEY NEED TO MOVE UP TO THEIR BOSSES'S JOBS SAYS JILL KANINLOVERS SENIOR VICE PRESIDENT IN CHARGE OF COMPENSATION AND BENEFITS AT AMERICAN EXPRESS IN NEW YORK WE WANT TO BROADEN WHAT WE FOCUS ON IN COMPENSATING PEOPLE TO LOOK AT SKILLS AND TALENTS NOT JUST BUDGET AND MANAGEMENT RESPONSIBILITY THE NEW LADDERS ALSO PROVIDE AN OPPORTUNITY TO REMEDY A PERENNIAL PROBLEM VETERAN EMPLOYEES WHO SIMPLY SHOULDN'T BE OR DON'T WANT TO BE MANAGERS MANY COMPANIES OF COURSE STILL PROMOTE THESE PEOPLE INTO MANAGEMENT EVEN THOUGH THAT OFTEN CREATES PROBLEMS FOR BOTH NEW MANAGERS AND THEIR SUBORDINATES SOME VETERAN EMPLOYEES HIT A VIRTUAL CEILING THAT LIMITS THEIR CAREER AND SALARY GROWTH AND THEN QUIT OR LANGUISH IN THE SAME SPOT FOR YEARS WE ENDED UP WITH MANAGERS WHO HAD GOOD STRONG TECHNICAL KNOWHOW BUT NOT PEOPLE SKILLS SAYS MONTE MONTEMURRO SENIOR VICE PRESIDENT FOR OPERATIONS AT PANCANADIAN PETROLEUM LTD A CANADIAN OILANDGAS EXPLORATION CONCERN IN CALGARY ALBERTA THEY WERE LOUSY MANAGERS AND THEY ENDED UP HEADING CORPORATE UNITS HE CONTINUES LAST YEAR PANCANADIAN ESTABLISHED SPECIAL CAREER LADDERS FOR GEOLOGISTS AND OTHER MEMBERS OF ITS TECHNICAL STAFF FOR PRICE WATERHOUSE REDUCING TURNOVER AND CUTTING COSTS WERE KEY FACTORS IN ITS 1990 DECISION TO CREATE THE TITLES OF DIRECTOR SENIOR DIRECTOR AND SENIOR MANAGING DIRECTOR NEARLY 100 PEOPLE CURRENTLY HOLD ONE OF THOSE TITLES AT THE GIANT ACCOUNTING AND CONSULTING FIRM THE FIRM'S TRADITIONAL PRACTICE OF UP OR OUT PROMOTING PEOPLE TO PARTNER OR SHOWING THEM THE DOOR HAD LED TO AN ANNUAL TURNOVER RATE OF BETWEEN 20 AND 25 OF ITS 12000 PROFESSIONALS SAYS DICK KEARNS THE PRICE WATERHOUSE VICE CHAIRMAN WHO OVERSEES PERSONNEL PRACTICES AT THE 975PARTNER CONCERN WITH THE COST OF TRAINING NEW PEOPLE IT GETS AWFULLY EXPENSIVE AND AWFULLY INEFFICIENT TO CONTINUE WITH THAT ORGANIZATIONAL SETUP AS A RULE MR KEARNS SAYS WE NEEDED TO BE MORE CREATIVE TO ALLOW FOR A CAREER PATH THAT DOESN'T NECESSARILY END IN PARTNERSHIP OR LEAVING PRICE WATERHOUSE DIRECTORS SPECIALIZE IN A VARIETY OF AREAS INCLUDING AUDIT CORPORATE FINANCE AND SOFTWARE DEVELOPMENT UNLIKE PARTNERS THEY LACK TENURE AND MANAGERIAL RESPONSIBILITIES THOUGH SOME DIRECTORS EARN MORE THAN PARTNERS WITH COMPARABLE EXPERIENCE MOST DIRECTORS DON'T HAVE THE SUSTAINED EARNINGS CAPACITY THAT PARTNERS HAVE AND GENERALLY DON'T SHARE IN PROFITS MR KEARNS SAYS ON THE OTHER HAND THEY CAN LEAD A VERY NICE LIFESTYLE DIRECTORS EARN AT LEAST 75 OF WHAT PARTNERS OF COMPARABLE EXPERIENCE MAKE AND EVEN GET SIMILARSIZE OFFICES MR KEARNS ADDS BY OFFERING MORE PEOPLE DIRECTORSHIPS ALONG WITH OTHER EFFORTS PRICE WATERHOUSE HOPES TO REDUCE ITS ANNUAL TURNOVER OF PROFESSIONALS TO BETWEEN 10 AND 15 WITHIN FIVE YEARS DUAL CAREER LADDERS ALREADY ARE ENABLING HONEYWELL INC IN MINNEAPOLIS TO RETAIN CERTAIN NONMANAGEMENT EMPLOYEES CONSIDER 40YEAROLD SUZANNE W DUNLAY HONEYWELL'S EFFORTS TO REWARD AND RECOGNIZE SALESPEOPLE WITHOUT PROMOTING THEM INTO MANAGEMENT HELPED TO PERSUADE MS DUNLAY A TOP SALESWOMAN WITH THE COMPANY'S HOME AND BUILDING CONTROL UNIT TO SPURN THE HALFDOZEN COMPETING JOB OFFERS SHE HAS RECEIVED IN RECENT MONTHS DURING THE PAST YEAR THE HONEYWELL UNIT HAS INCREASED THE BASE PAY FOR 50 OF ITS BEST SALESPEOPLE BY ABOUT 15 SO THAT IT MATCHES STARTING SALES MANAGERS' APPROXIMATELY 48000 BASE PAY GENEROUS COMMISSIONS AND OTHER INCENTIVES CAN BOOST A TOP SALESPERSON'S TOTAL PAY BEYOND 100000 A YEAR IN MANY CASES ECLIPSING MANAGERS' CASH COMPENSATION TAKING THE STEP INTO MANAGEMENT USED TO BE THE THING TO DO AND THE ONLY CAREER LADDER MS DUNLAY SAYS BUT NOW THEY'VE MADE IT EXTREMELY ATTRACTIVE FOR SUCCESSFUL SALESPEOPLE TO STAY WITH THE COMPANY SHE ADDS CONFLICTS CAN ERUPT WHEN A COMPANY GIVES MANAGEMENTLEVEL SALARIES AND STATUS TO NONMANAGERS HOWEVER THE MOST OBVIOUS POTENTIAL PROBLEM WHO IS REALLY IN CHARGE IF AN INDIVIDUAL CONTRIBUTOR EARNS MORE OR STANDS ON A HIGHER RUNG THAN THE DESIGNATED BOSS WHEN YOU TALK TO YOUR STAFF THEY RAISE THAT AS A CONCERN MR MONTEMURRO OF PANCANADIAN SAYS COMPANIES TEND TO SIDE WITH THEIR MANAGERS AT PRICE WATERHOUSE FOR EXAMPLE PARTNERS HEAD ALL CLIENT DEALINGS AND RETAIN EXCLUSIVE OPINION AUTHORITY THE ABILITY TO SIGN THE FIRM'S NAME TO AN AUDIT OR TAX RETURN BUT PANCANADIAN TRYING TO BE INCLUSIVE ASKS MANAGERS TO SOLICIT THE OPINIONS FROM THEIR TECHNICALSIDE COUNTERPARTS BEFORE THEY MAKE DECISIONS PARTLY BECAUSE MANAGERS ARE STILL WIDELY VIEWED AS TOP DOGS EMPLOYERS SAY IT ISN'T ALWAYS EASY TO ESTABLISH THE CREDIBILITY OF UNCONVENTIONAL CAREER PATHS THAT'S WHY SOME COMPANIES ARE HEAVILY PROMOTING THEIR NEW CAREER LADDERS THROUGH MEETINGS BROCHURES AND COMPANY NEWSLETTERS IN SOME CASES WE'VE HAD TO DEAL WITH THE ISSUE OF PEOPLE QUESTIONING THE VALUE OF THE DIRECTOR POSTS MR KEARNS OF PRICE WATERHOUSE ACKNOWLEDGES EMPLOYEES REMAIN SKEPTICAL AT OTHER WORKPLACES TOO HALF OF WORKERS STILL PERCEIVE THE MANAGEMENT CAREER LADDER TO BE MORE DESIRABLE THAN PROFESSIONAL AND TECHNICAL LADDERS CONCLUDES A 1992 SURVEY OF 107 BIG COMPANIES BY CONSULTANTS HEWITT ASSOCIATES IN LINCOLNSHIRE ILL BUT JUST 5 HOLD THE NEW LADDERS IN HIGHER ESTEEM MR KEARNS ISN'T WORRIED HE CONTENDS THAT PRICE WATERHOUSE'S EXTREMELY HIGH RETENTION OF ITS 100 DIRECTORS ONLY A HANDFUL HAVE LEFT IS A HEALTHY SIGN THAT IT'S NOT A CONSOLATION PRIZE MR FUCHSBERG IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU NINETY PERCENT OF COMPANIES WITH DUAL CAREER LADDERS CITED THE RETENTION OF TECHNICAL PEOPLE AS THE MAIN REASON FOR CREATING THE LADDERS HERE ARE ALL OF THE TOP REASONS AMONG SURVEYED COMPANIES WITH DUAL CAREERS LADDERS 67 SAID THAT THEIR POLICIES HAD ACHIEVED DESIRED RESULTS 13 SAID THEY HADN'T WHILE 20 SAID THAT IT WAS TOO SOON TO TELL HERE ARE SOME OF THE PROBLEMS THAT THE DISSATISFIED COMPANIES REPORTED HAVING WITH DUAL CAREER LADDERS 9304210164 930421 TREASURY TO PAY DOWN DEBT SELL 20 BILLION IN SHORTTERM BILLS WASHINGTON THE TREASURY PLANS TO PAY DOWN 36 BILLION ON THE PUBLIC DEBT WITH THE SALE MONDAY OF ABOUT 20 BILLION IN SHORTTERM BILLS MATURING BILLS OUTSTANDING TOTAL 236 BILLION THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING ON JULY 29 1993 AND OCT 28 1993 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794D92 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794G32 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EDT MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EDT 9304210163 930421 BUSINESS BRIEF AVNET INC TO ACQUIRE HALLMARK ELECTRONICS FOR 3446 MILLION GREAT NECK NY ELECTRONIC COMPONENTS DISTRIBUTOR AVNET INC SAID IT AGREED TO BUY HALLMARK ELECTRONICS CORP OF DALLAS IN A CASHANDSTOCK TRANSACTION VALUED AT 3446 MILLION AVNET WHICH ALSO DISTRIBUTES COMPUTER PRODUCTS TO INDUSTRIAL AND MILITARY USERS SAID EACH HALLMARK COMMON SHARE WILL BE EXCHANGED FOR 20 IN CASH AND 045 AVNET COMMON SHARES BASED ON YESTERDAY'S CLOSING PRICE OF 31375 FOR AVNET SHARES EACH SHARE OF HALLMARK WOULD BE VALUED AT 3412 HALLMARK HAD 101 MILLION SHARES OUTSTANDING AS OF MARCH 12 VALUING THE CASHANDSTOCK TRANSACTION AT 3446 MILLION INCLUDING THE ASSUMPTION OF DEBT AVNET SAID THE TOTAL TRANSACTION IS VALUED AT ABOUT 485 MILLION SHARES OF HALLMARK SOARED 8 TO 3275 APIECE IN LATE OVERTHECOUNTER TRADING AVNET'S STOCK CLIMBED 625 CENTS TO 31375 EACH IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE AVNET ONE OF THE NATION'S LARGEST DISTRIBUTORS OF ELECTRONIC COMPONENTS AND COMPUTER SYSTEM PRODUCTS HAD 1992 REVENUE OF ABOUT 2 BILLION WHILE HALLMARK HAD REVENUE OF 700 MILLION THROUGH ITS ALLIED ELECTRONICS UNIT HALLMARK ALSO IS AMONG THE LARGEST CATALOG DISTRIBUTORS OF ELECTRONIC COMPONENTS IN THE US THE COMBINED 1993 SALES OF AVNET AND HALLMARK ARE EXPECTED TO EXCEED 3 BILLION LEON MACHIZ AVNET CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE ACQUISITION HAS BEEN APPROVED BY BOTH COMPANIES' BOARDS AND IS SUBJECT TO APPROVAL BY HALLMARK'S SHAREHOLDERS 9304210162 930421 BUSINESS BRIEF STARBUCKS CORP PROFIT MORE THAN DOUBLED IN FISCAL SECOND QUARTER STARBUCKS CORP SAID NET INCOME MORE THAN DOUBLED IN ITS FISCAL SECOND QUARTER THE SEATTLE COFFEE STORE CHAIN POSTED EARNINGS OF 13 MILLION OR NINE CENTS A SHARE FOR THE QUARTER ENDED MARCH 28 UP FROM 556000 OR FIVE CENTS A SHARE A YEAR EARLIER SALES ROSE 68 TO 34 MILLION FROM 203 MILLION A YEAR EARLIER THE AVERAGE NUMBER OF SHARES OUTSTANDING AT THE PERIOD'S END ROSE TO 144 MILLION FROM 116 MILLION LARGELY BECAUSE OF THE COMPANY'S INITIAL PUBLIC OFFERING IN JUNE 1992 DURING THE QUARTER STARBUCKS OPENED 25 NEW STORES BRINGING ITS TOTAL TO 190 COMPANYOWNED STORES AND SIX AIRPORT STORES THE COMPANY SAID IT EXPECTS TO OPEN A TOTAL OF 85 COMPANYOWNED STORES AND FIVE AIRPORT STORES IN THE CURRENT FISCAL YEAR 9304210161 930421 TECHNOLOGY & MEDICINE AMERICA ONLINE CUTS FEE TO LURE PRODIGY'S USERS BY LAURENCE HOOPER STAFF REPORTER OF THE WALL STREET JOURNAL SKIRMISHES OVER PRICES ARE BREAKING OUT IN THE MARKETING BATTLE AMONG ONLINE COMPUTER INFORMATION SERVICES YESTERDAY AMERICA ONLINE INC CUT THE PRICE OF ITS ONLINE SERVICES FOR PERSONALCOMPUTER USERS HOPING TO BOOST ITS ALREADYHEALTHY SUBSCRIBER GROWTH AND REACH CRITICAL MASS MORE QUICKLY IN AN UNUSUALLY BOLD MOVE THE UPSTART SERVICE WHICH COUNTS ABOUT 250000 HOUSEHOLDS AS SUBSCRIBERS ALSO DIRECTLY COMPARED ITS NEW RATES TO THOSE OF PRODIGY SERVICES CO ITS MARKETLEADING RIVAL THE COMPARISON WAS CALCULATED TO WOO SUBSCRIBERS FROM PRODIGY WHICH ANGERED MANY MEMBERS FRIDAY BY SAYING IT WOULD CHARGE EXTRA FOR SOME POPULAR SERVICES NOW COVERED BY A FLAT RATE INDEED AMERICA ONLINE PRESIDENT STEVE CASE SAID THE COMPANY DELIBERATELY WAITED UNTIL AFTER THE PRODIGY ANNOUNCEMENT TO DISCLOSE ITS NEW PRICING HOPING TO MAXIMIZE ATTENTION FOR ITS MOVE BUT WHILE MR CASE INSISTED THE PRODIGY COMPARISON WAS A MARKETING PLOY RATHER THAN THE FIRST SHOT OF A PRICE WAR THE NEW PRICE STRUCTURE WAS DECIDED MORE THAN A MONTH AGO INVESTORS DIDN'T REACT KINDLY TO THE CUTS OR THE IDEA OF A BATTLE BETWEEN ONLINE SERVICES AMERICA ONLINE'S STOCK FELL MORE THAN 20 BEFORE BARGAIN HUNTERS STEPPED IN TO HELP IT FINISH AT 22 A SHARE DOWN 625 CENTS IN OVERTHECOUNTER TRADING PRODIGY WHICH COUNTS MORE THAN TWO MILLION USERS IS A MONEYLOSING VENTURE COOWNED BY INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO IN GENERAL ONLINE SERVICES TRY TO DISTINGUISH THEMSELVES THROUGH THE FEATURES THEY PROVIDE NOT THROUGH PRICE COMPARISONS THAT'S BECAUSE MOST PRICE COMPARISONS ARE CLOSE TO MEANINGLESS MANY PRICING PLANS ARE SO COMPLEX THAT SUBSCRIBERS MAY HAVE ONLY A BROAD IDEA OF WHAT THEY'RE PAYING FOR MORE IMPORTANTLY EACH PROVIDER OFFERS DIFFERENT BENEFITS USES DIFFERENT PAYMENT OPTIONS AND ATTRACTS DIFFERENT TYPES OF CUSTOMERS PROVIDERS AREN'T EVEN NECESSARILY IN DIRECT COMPETITION SOME USERS SUBSCRIBE TO SEVERAL SERVICES THIS ISN'T A ZEROSUM GAME SAID A PRODIGY SPOKESMAN THIS INDUSTRY IS GROWING AND EVOLVING WE AREN'T LIKE FORD GM AND CHRYSLER DIVIDING UP A FIXED PIE PRODIGY SAYS ITS SUBSCRIBER COUNT GREW ABOUT 40 LAST YEAR AMERICA ONLINE WHICH PROMOTES ITSELF AS THE FASTESTGROWING SERVICE ALSO GREW ABOUT 40 LAST YEAR BUT A SPOKESWOMAN SAID ITS GROWTH RATE ACCELERATED IN THE FIRST QUARTER AMERICA ONLINE WILL REPORT FIRSTQUARTER RESULTS MONDAY SHE NOTED ANALYSTS ARE PREDICTING A PROFIT OF 14 CENTS A SHARE FOR THE PERIOD ACCORDING TO ZACKS INVESTMENT RESEARCH INC IN ITS ANNOUNCEMENT AMERICA ONLINE BOASTED THAT PC USERS WOULD PAY ONLY 995 A MONTH FOR FIVE HOURS OF ACCESS TO ALL ITS SERVICES A PRICE IT CLAIMED IS LESS THAN HALF THE PRICE OF PRODIGY'S NEW OFFERING EXTRA HOURS WILL COST 350 EACH BUT PRODIGY USERS WHO PAY 1495 A MONTH GET UNLIMITED ACCESS TO A WIDE RANGE OF FEATURES EVEN THOUGH STARTING JULY 1 THEY MUST PAY SURCHARGES AFTER SPENDING TWO HOURS ON CERTAIN POPULAR OPTIONS SUCH AS BULLETIN BOARDS BY CONTRAST AMERICA ONLINE CUSTOMERS START PAYING EXTRA AFTER FIVE HOURS NO MATTER WHAT FEATURES THEY'RE USING AMERICA ONLINE HAD PREVIOUSLY CHARGED 795 A MONTH FOR TWO HOURS OF ACCESS PLUS A 6 HOURLY SURCHARGE AFTER THAT ITS NEW SUBSCRIPTION RATES WHICH SHOULD SAVE MONEY FOR CUSTOMERS WHO USE MORE THAN TWO HOURS A MONTH TAKE EFFECT MAY 1 THE LOWER SURCHARGE BEGINS JULY 1 COMPUSERVE INC THE OTHER BIG ONLINE SERVICE WITH ABOUT 125 MILLION SUBSCRIBERS CHANGED ITS PRICES ON MARCH 1 IT NOW OFFERS A FLAT RATE OF 895 A MONTH FOR UNLIMITED USE OF 36 BASIC FEATURES SUCH AS AIRLINE RESERVATIONS AND MOVIE REVIEWS EXTRA FEATURES COST 8 AN HOUR FOR MOST USERS IT HAD PREVIOUSLY CHARGED A FLAT RATE OF 795 A MONTH AND 1280 AN HOUR FOR EXTRA FEATURES COMPUSERVE IS OWNED BY H&R BLOCK INC DOW JONES & CO PUBLISHER OF THE WALL STREET JOURNAL ALSO OPERATES AN ONLINE INFORMATION SERVICE CALLED DOW JONES NEWS/RETRIEVAL A SPOKESMAN SAID THE COMPANY HAS NO PLAN TO CHANGE NEWS/RETRIEVAL PRICING INDIVIDUALS PAY A FLAT 25AMONTH FEE FOR UNLIMITED ACCESS ON WEEKENDS AND AFTER 8 PM ON WEEKDAYS HIGHER PRICES APPLY AT OTHER TIMES 9304210160 930421 LETTERS TO THE EDITOR ADA BRINGS DISABLED INTO MAINSTREAM ATTORNEY JULIE C JANOFSKY'S MANAGER'S JOURNAL WHOEVER WROTE ADA REGS NEVER RAN A BUSINESS EDITORIAL PAGE MARCH 15 CLAIMING COMPLEXITY AND HIGH COST OF COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT ADA LEADS ME TO BELIEVE SHE MUST HAVE READ THE WRONG LEGISLATION HER ARTICLE IS INSULTING TO PEOPLE WITH DISABILITIES AND JUST PLAIN INCORRECT IN SOME OF ITS ASSERTIONS FIRST THE ADA ENACTED JULY 1990 FINALLY BROUGHT PEOPLE WITH DISABILITIES INTO THE MAINSTREAM BY GRANTING US THE SAME CIVIL RIGHTS OTHER AMERICANS HAVE WHILE SOME BUSINESSES MAY HAVE CHOSEN TO SEEK ADVICE FROM ATTORNEYS OR HIRE CONSULTANTS IMPLEMENTATION OF THE ADA HAS INCLUDED FREE TECHNICAL ASSISTANCE FROM VARIOUS FEDERAL AGENCIES INCLUDING THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION THE JUSTICE DEPARTMENT AND THE JOB ACCOMMODATION NETWORK A TOLLFREE SERVICE OF THE PRESIDENT'S COMMITTEE ON EMPLOYMENT OF PEOPLE WITH DISABILITIES RATHER THAN THE ACT CREATING A PROBLEM IN THE DEFINITION OF DISABILITIES THIS LAW FOR THE FIRST TIME DEFINES DISABILITY IN FUNCTIONAL TERMS AS SUBSTANTIAL IMPAIRMENT TO MAJOR LIFE ACTIVITY IN FACT THE DEFINITION IS WRITTEN IN SUCH A WAY AS TO ELIMINATE THOSE DISABILITIES THAT ARE MINOR OR OF SHORT DURATION CLAIMING THAT THERE ARE VIRTUALLY NO LIMITS TO WHAT ACCOMMODATIONS CAN BE DEMANDED IS NOT TRUE THE LAW CLEARLY STATES THAT ACCOMMODATIONS MUST BE REASONABLE AND NOT CREATE UNDUE HARDSHIP TO BUSINESSES ACCORDING TO THE MOST RECENT INFORMATION AVAILABLE THE COST OF REASONABLE ACCOMMODATION AVERAGES 500 OR LESS A PERSON DESPITE MS JANOFSKY'S ASSERTION ILLEGAL USE OF DRUGS IS NOT PROTECTED BY THE ADA WHILE IT IS TRUE THAT AN EMPLOYER MAY NOT INITIATE DISCUSSION OF A DISABILITY WITH AN APPLICANT THE LAW DOES NOT PREVENT IN ANY WAY THE EMPLOYER ASKING THE APPLICANT TO SHOW OR EXPLAIN HOW HE WOULD DO A JOB IT IS IMPORTANT TO NOTE THAT THERE ARE 43 MILLION PEOPLE WITH DISABILITIES IN THE US TWOTHIRDS OF THOSE OF WORKING AGE ARE NOT WORKING THE ESTIMATED COST TO THE NATION IS 200 BILLION CONTINUING TO KEEP PEOPLE WITH DISABILITIES OUT OF THE WORK FORCE CONTRIBUTES SIGNIFICANTLY TO THE NATIONAL DEFICIT NOT TO MENTION THE HUMAN COSTS ASSOCIATED WITH DISCRIMINATING OR BEING THE OBJECT OF DISCRIMINATION MS JANOFSKY IS QUITE RIGHT THE ADA IS COMPLICATED AND UNCLEAR BUT THIS SHOULD COME AS NO SURPRISE AS WITH ALL OF AMERICA'S CIVIL RIGHTS LAWS WE SHOULD KNOW THERE ARE NO COOKBOOK APPROACHES TO ELIMINATION OF DISCRIMINATION SURELY THE ADA'S INTERPRETATION AND EFFECTIVENESS WILL TO SOME EXTENT BE PLAYED OUT IN THE COURTS RATHER THAN FOOTDRAGGING WAITING FOR COURT INTERPRETATION AS MS JANOFSKY SAYS MANY MANAGERS ARE DOING MANAGERS SHOULD BE EXAMINING THEIR HIRING AND OTHER EMPLOYMENT PRACTICES THE ADA IS A SUPERB LAW A LONG OVERDUE WAKEUP CALL THAT DISCRIMINATION TOWARD DISABLED AMERICANS WILL NO LONGER BE TOLERATED MANAGERS WHO DO NOTHING WILL LIKELY BE THE ONES DRAWN INTO COURT AND TOLD BY A JUDGE HOW TO RUN THEIR BUSINESSES DISCRIMINATION TOWARD DISABLED PEOPLE IS WIDESPREAD AND CANNOT BE CONTINUED TO ILLUSTRATE THIS MY ORGANIZATION CONDUCTED SEVERAL NATIONAL SURVEYS THAT HELPED TO SUPPORT DEVELOPMENT AND PASSAGE OF THE ADA ONE OF THESE WAS A 1987 SURVEY OF 920 RANDOMLY SELECTED EMPLOYERS WE FOUND THAT 75 FELT DISABLED PEOPLE ENCOUNTERED JOB DISCRIMINATION THE MAJORITY 70 OF EMPLOYERS AGREED CIVIL RIGHTS LAWS THAT COVER DISCRIMINATION AGAINST MINORITIES SHOULD ALSO COVER DISCRIMINATION AGAINST DISABLED PEOPLE IN A SURVEY CONDUCTED ONE YEAR EARLIER WE FOUND THAT ONE IN FOUR WORKINGAGE DISABLED PEOPLE SAID THEY HAD ENCOUNTERED JOB DISCRIMINATION BECAUSE OF THEIR DISABILITY THREE OUT OF EVERY FOUR DISABLED PEOPLE SURVEYED BELIEVED CIVIL RIGHTS LAWS THAT PROTECT OTHER MINORITIES AGAINST DISCRIMINATION SHOULD BE EXTENDED TO COVER DISABLED PEOPLE AS WELL 9304210159 930421 TECHNOLOGY & MEDICINE KODAK RECEIVES JAPANESE PATENT ON TECHNOLOGY BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL EASTMAN KODAK CO CONFIRMED THAT IT RECEIVED APPROVAL THIS MONTH TO PATENT A HIGHDENSITY MAGNETIC RECORDING TECHNOLOGY IN JAPAN ANALYSTS HAVE ESTIMATED THAT THE TECHNOLOGY USED IN MOST CAMCORDERS HIGHPERFORMANCE TAPE RECORDERS AND SOME VIDEOCASSETTE RECORDERS COULD HAVE A VALUE OF 200 MILLION TO 800 MILLION IN BACK ROYALTIES THE TECHNOLOGY CALLED MICROGAP RECORDING ESSENTIALLY IS A WAY OF PUTTING MORE INFORMATION ON LESS TAPE BUT IT'S UNLIKELY THAT THE ROCHESTER NY PHOTOGRAPHY CHEMICAL AND HEALTHCARE CONGLOMERATE WILL SEE ANY MONEY SOON THE 23 JAPANESE COMPANIES WHOSE PRODUCTS USE THE TECHNOLOGY ARE LIKELY TO CONTEST THE PATENT IN COURT I DON'T THINK THE JAPANESE ARE GOING TO ROLL OVER AND PAY ROYALTIES WITHOUT A FIGHT SAID DEAN WITTER ANALYST EUGENE GLAZER EVEN IF THE PATENT IS UPHELD IT WOULD LIKELY TAKE YEARS TO WIN SETTLEMENTS HONEYWELL INC WHICH BEGAN SUING CAMERA MAKERS IN 1987 FOR ALLEGEDLY INFRINGING ON AN AUTOFOCUS PATENT DIDN'T START RECEIVING SETTLEMENTS UNTIL 1992 OF COURSE THE PRIZE COULD BE WORTH THE WAIT HONEYWELL HAS WON 3145 MILLION IN PATENTINFRINGEMENT SETTLEMENTS IN KODAK'S CASE ANY TIME YOU CAN GET SOME INCREMENTAL REVENUES AND CASH YOU'VE GOT TO LIKE IT SAID PRUDENTIAL SECURITIES INC ANALYST B ALEX HENDERSON LAST MONTH KODAK SUED JAPAN'S SONY CORP AND ITS SONY OF AMERICA UNIT FOR ALLEGEDLY INFRINGING ON A US PATENT THAT COVERS A SLIGHTLY DIFFERENT VERSION OF THE TECHNOLOGY THE US PATENT AWARDED IN 1981 COVERS RECORDING HEADS WITH MAGNETIC RECORDING GAPS OF 38 MICROINCHES OR LESS THE JAPANESE PATENT IS NARROWER COVERING RECORDING HEADS WITH MAGNETIC RECORDING GAPS OF 30 MICROINCHES OR LESS SONY HAS SAID THAT EUROPE AND JAPAN HAVE REJECTED THE 38 MICROINCH PATENT AS INVALID BECAUSE SIMILAR TECHNOLOGY HAD BEEN IN THE PUBLIC DOMAIN THROUGH PUBLIC LITERATURE LONG BEFORE KODAK FILED ITS PATENT A KODAK SPOKESMAN SAID HE COULDN'T COMMENT ON EUROPEAN PATENT APPLICATIONS BUT CONFIRMED THAT THE JAPANESE PATENT OFFICE HAD REJECTED AN EARLIER VERSION OF KODAK'S APPLICATION 9304210158 930421 EXECUTIVE PAY A SPECIAL REPORT DEFENDING THEIR DOLLARS BY JONATHAN M MOSES IT'S ALMOST A GIVEN ISSUE NEW FEDERAL RULES AND THE LAWSUITS WILL COME THAT WILL NO DOUBT HAPPEN WITH THE NEW SECURITIES AND EXCHANGE COMMISSION'S PROXYSTATEMENT RULES REGARDING EXECUTIVE COMPENSATION BUT LAWYERS AND CONSULTANTS SAY THAT PLAINTIFFS FACE A DAUNTING CHALLENGE AND THEY DOUBT THAT MANY WILL SUCCEED THE NEW PAYDISCLOSURE REGULATIONS WHICH TOOK EFFECT JAN 1 REQUIRE THAT PROXY STATEMENTS INCLUDE NEW CHARTS SPELLING OUT COMPENSATION FOR A COMPANY'S FIVE HIGHESTPAID EXECUTIVES BOARDS' COMPENSATION COMMITTEES ALSO MUST NOW GIVE A DETAILED EXPLANATION OF WHY THEY PAID THOSE TOP EXECUTIVES WHAT THEY DID THAT'S POTENTIAL FODDER FOR LAWSUITS SHAREHOLDERS IN PARTICULAR MAY BE ABLE TO BUILD LAWSUITS AROUND CLAIMS THAT COMPENSATION MATERIALS WERE MISLEADING OR THAT MATERIAL INFORMATION WAS HIDDEN OR DELETED SOMEBODY WILL ALWAYS FIND SOME WAY TO GET SOMEBODY INTO COURT SAYS RICHARD A STEINWURTZEL AN ATTORNEY IN THE WASHINGTON DC OFFICE OF FRIED FRANK HARRIS SHRIVER & JACOBSON WHO HAS BEEN ADVISING COMPANIES ON HOW TO PREPARE THEIR COMPENSATIONCOMMITTEE REPORTS SO FAR THOUGH FEW SUCH CASES HAVE BEEN FILED AND MR STEINWURTZEL AND OTHER LAWYERS FOR COMPANIES ARE CONVINCED THEY CAN DEFEAT MOST THAT DO APPEAR THEY BELIEVE THEY ARE PROTECTED BY THE SOCALLED BUSINESSJUDGMENT RULE A DOCTRINE THAT GIVES COMPANIES BROAD LEEWAY IN THE ABSENCE OF OUTRIGHT FRAUD TO MAKE BUSINESS DECISIONS INCLUDING THOSE REGARDING COMPENSATION THE SEC HAS EXPLICITLY EXCLUDED SALARYRELATED ISSUES FROM CERTAIN KINDS OF SECURITIESFRAUD CASES IF NO FRAUD IS INVOLVED THE LAWYERS SAY THE ONLY WAY TO CHALLENGE EXECUTIVE PAY IN COURT IS TO PROVE THAT THE COMPENSATION AMOUNTS TO A WASTE OF CORPORATE ASSETS THAT'S EXTREMELY DIFFICULT TO DO SINCE NO ONE REALLY KNOWS WHAT AN EXECUTIVE IS WORTH AND JUDGES RARELY WANT TO DECIDE IS SOMEBODY WORTH 200 MILLION I DON'T KNOW SAYS DAVID BROWER A SHAREHOLDERS' ATTORNEY AT WOLF HALDENSTEIN ADLER FREEMAN & HERZ IN NEW YORK IN THE PAST MOST SUCCESSFUL CASES CHALLENGING SALARIES HAVE INVOLVED THINLY TRADED COMPANIES IN WHICH THE MAJORITY SHAREHOLDER ALSO DRAWS A SALARY AS AN EXECUTIVE IN A RECENT CASE SHAREHOLDERS OF FAIRCHILD CORP SUED THE COMPANY'S CHIEF EXECUTIVE JEFFREY J STEINER IN CHANCERY COURT IN DELAWARE ALLEGING THAT THE EXECUTIVE PAID HIMSELF TOO MUCH MR BROWER THE ATTORNEY FOR THE PLAINTIFFS SAYS THAT HE WON A SETTLEMENT BY SHOWING THAT MR STEINER CONTROLLED THE BOARD THAT APPROVED HIS 6 MILLION PAY PACKAGE FOR 1990 THAT YEAR FAIRCHILD A CHANTILLY VA AEROSPACE INDUSTRIALPRODUCTS AND COMMUNICATIONSSERVICES CONCERN WITH ONLY A FEW SHAREHOLDERS ASIDE FROM MR STEINER AND HIS FAMILY EARNED 15 MILLION A FAIRCHILD SPOKESMAN SAYS THAT MR STEINER DIDN'T THINK THE SETTLEMENT WAS CORRECT BUT AGREED TO IT TO AVOID LENGTHY LITIGATION IN MOST BIGGER CASES INVOLVING EXECUTIVES AT WIDELY TRADED COMPANIES LAWSUITS CHALLENGING HUGE EXECUTIVE SALARIES HAVE FLOPPED BECAUSE OF THE BUSINESSJUDGMENT RULE STILL BIG PUBLIC COMPANIES HAVE BEEN GEARING UP TO PROTECT THEMSELVES IN THE NEW ENVIRONMENT THAT THE SEC'S NEW RULES CREATE COMPANIES HAVE SPENT HUNDREDS OF THOUSANDS OF DOLLARS ON CONSULTANTS AND LAWYERS WHO HAVE HELPED TO DRAW UP THE COMPENSATION REPORTS THAT ARE BEING INCLUDED IN THIS YEAR'S PROXY MATERIALS THE FIRST TEST FOR THESE REPORTS IS WHETHER THEY PASS MUSTER WITH THE SEC THE SECOND WHETHER THEY ARE CONSTRUCTED SO AS TO HEAD OFF MOST LAWSUITS AND DEFEAT THE FEW THAT ARE FILED MR STEINWURTZEL WARNS THAT THE MOST VULNERABLE POINT FOR LITIGATION MAY BE A NEW PERFORMANCE GRAPH BUSINESSES FOR INSTANCE MUST COMPARE THEIR FIVEYEAR TOTAL RETURN STOCKPRICE CHANGE PLUS DIVIDENDS WITH THE RETURNS OF A GROUP OF PEERS THEY CAN USE A WELLKNOWN PEER GROUP OR ASSEMBLE THEIR OWN YOU HAVE TO BE CAREFUL HOW YOU CONSTRUCT THE PEER GROUP MR STEINWURTZEL SAYS IF HANDLED CORRECTLY THOUGH THE COMPENSATION COMMITTEES' REPORTS SHOULD ACTUALLY PREVENT LAWSUITS SAYS FRED KANNER A LAWYER IN THE NEW YORK OFFICE OF DEWEY BALLANTINE THE KEY POINT TO REMEMBER HE SAYS IS THAT THE STATEMENTS MUST ACCURATELY REFLECT THE WAY THE COMPANY ACTUALLY COMPENSATES EXECUTIVES THIS IS NOT ROCKET SCIENCE MR KANNER ADDS IT'S BASIC BLOCKING AND TACKLING WITH THE BUSINESSJUDGMENT RULE MR MOSES IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9304210157 930421 USXMARATHON UNIT'S NOTES PITTSBURGH USX CORP SAID MARATHON OIL CO A UNIT OF USXMARATHON GROUP IS NOTIFYING HOLDERS OF ITS 9 1/2 GUARANTEED NOTES DUE MARCH 1 THAT IT IS CONSIDERING AN EXCHANGE OFFER MARATHON HAS 776 MILLION OF THE NOTES OUTSTANDING THE COMPANY WILL DISCLOSE DETAILS OF THE EXCHANGE OFFER IF IT DECIDES TO PROCEED WITH IT IN A CIRCULAR TO BE MAILED TO HOLDERS IN THE NEXT 30 DAYS 9304210156 930421 EXECUTIVE PAY A SPECIAL REPORT THE BIG LIE JOB APPLICANTS RARELY TELL THE TRUTH ABOUT THEIR CURRENT SALARIES AND THE DECEPTION USUALLY PAYS OFF BY JULIE AMPARANO LOPEZ BILL RICHARDS VIVIDLY REMEMBERS THE DAY HE HIT THE MOTHER LODE IT WAS THE DAY THAT HIS WIFE CAME HOME FROM THE HOSPITAL WITH THEIR NEWBORN SON IT WAS THE DAY THAT RONALD REAGAN WAS SWORN IN FOR HIS SECOND TERM AND IT WAS THE DAY THAT MR RICHARDS A 55000AYEAR PRODUCTION ANALYST LANDED A CUSHY NEW JOB WITH A WEST COAST MAKER OF HEAVY MACHINERY REAL CUSHY A 150000 SALARY COMPANY CAR AND COUNTRYCLUB MEMBERSHIP IT WAS ALMOST LIKE TAKING CANDY FROM A BABY SAYS MR RICHARDS NOW A 42YEAROLD VICE PRESIDENT FOR A CHICAGO MANUFACTURER WHERE HE EARNS ABOUT 180000 ALL I HAD TO DO WAS SLIGHTLY EMBELLISH MY SALARY AND JOB DESCRIPTION MR RICHARDS IS BEING MODEST HE DID MORE THAN SLIGHTLY EMBELLISH HIS SALARY HE INDICATED THAT HIS SALARY WAS ALMOST THREE TIMES WHAT IT ACTUALLY WAS BUT HE STILL FEELS THE LIE WAS NO BIG DEAL JUST ABOUT EVERYBODY DOES IT HE SAYS HE MAY BE RIGHT PERHAPS 95 OF ALL AMERICANS OVERSTATE THEIR COMPENSATION AT ONE TIME OR ANOTHER ESTIMATES WILLIAM HR SHOCKEY AN EXECUTIVE RECRUITER WITH THORNDIKE DELAND ASSOCIATES IN NEW YORK THE PRACTICE IS REALLY OUT OF CONTROL SAYS MR SHOCKEY WHO HELPS CORPORATE CLIENTS NEGOTIATE EXECUTIVECOMPENSATION PACKAGES BASED ON A CANDIDATE'S PREVIOUS PAY LEVEL SALARY DECEPTION HAS BECOME EPIDEMIC IN PART BECAUSE INDIVIDUALS BELIEVE IT'S THE ONLY WAY TO GET AHEAD IN AN ERA OF RAMPANT CORPORATE CUTBACKS MOREOVER IT'S RELATIVELY EASY FOR JOB SEEKERS TO LIE BECAUSE FEW BUSINESSES BOTHER TO VERIFY PAST SALARIES EMPLOYERS DON'T WANT TO OFFEND JOB CANDIDATES EXPLAINS THOMAS H OGDON PRESIDENT OF THE OGDON PARTNERSHIP A NEW YORK EXECUTIVESEARCH FIRM COMPANIES ARE MUCH MORE CONCERNED ABOUT GETTING THE RIGHT PERSON THAN WHETHER THEY PAID TOO MUCH NOW THAT PICTURE IS CHANGING MORE COMPANIES ARE STARTING TO CHECK OUT APPLICANTS' PAY HISTORY AND THERE SOON MAY BE STIFFER PENALTIES FOR INFLATING PAY LEVELS INCREASINGLY EMPLOYMENT ATTORNEYS ADVISE COMPANIES TO CHECK FILES FOR FALSE JOBAPPLICATION STATEMENTS WHEN EMPLOYEES RUN INTO TROUBLE LATER STAFF MEMBERS CAUGHT LYING CAN BE FIRED NO MATTER HOW FAR THEIR CAREERS HAVE PROGRESSED AN EMPLOYER WITH PROOF THAT A DISCHARGED EMPLOYEE LIED ON A JOB APPLICATION MAY NOT HAVE TO DEFEND ITSELF AGAINST SUCH AN EMPLOYEE'S SUIT ALLEGING WRONGFUL DISCHARGE A FEDERAL APPEALS COURT IN MICHIGAN DECIDED LAST YEAR EVEN SO THE PRACTICE SEEMS UNLIKELY TO DISAPPEAR SOON PAY DECEPTION IS A PROBLEM I HAVE TO DEAL WITH EVERY DAY SAYS GARY BILLINGS WHO IS IN CHARGE OF HIRING EXECUTIVES AS HUMANRESOURCES DIRECTOR FOR NEW YORK ADVERTISING GIANT LINTAS WORLDWIDE A UNIT OF INTERPUBLIC GROUP OF COS WELL ABOVE 50 OF THE PEOPLE I INTERVIEW LIE ABOUT HOW MUCH THEY MAKE IT'S A GROWING DILEMMA THE PRACTICE PERSISTS BECAUSE MANY JOB CANDIDATES BELIEVE HONESTY DOESN'T PAY THE PREVAILING ATTITUDE IS THAT IF YOU TELL THE TRUTH AN EMPLOYER WILL MATCH YOUR SALARY AT BEST EXPLAINS BETSY JAFFE A CAREER COUNSELOR IN NEW YORK WHO BELIEVES IT'S BEST TO TELL THE TRUTH SHE SAYS SHE LIED WHEN SHE AND THE WOULDBE EMPLOYER DISCUSSED HER SALARY WHICH WAS THEN 45000 I THOUGHT THE EXAGGERATION WAS PART OF THE CATANDMOUSE GAMES THAT GO ON DURING THE INTERVIEWING PROCESS THE WOMAN CONFESSES IN THE END THE COMPANY HIRED SOMEONE ELSE SHE SUSPECTS IT WAS TURNED OFF BY HER 65000 PRICE TAG FOR INDIVIDUALS LIKE MR RICHARDS SALARY EMBELLISHMENT IS ALMOST PART OF A CORPORATE RITE OF PASSAGE BREAKING THROUGH RANKANDFILE JOBS INTO MANAGEMENT OR JUMPING OUT OF DOUBLEDIGIT SALARIES INTO THE LOFTY TRIPLEDIGIT RANGE THESE PEOPLE COMPLAIN THAT COMPANIES RELY TOO MUCH ON A CANDIDATE'S CURRENT PAY RATHER THAN THE VALUE OF THE JOB ITSELF SO THEY SAY IF A PERSON IS UNDERPAID THAT TENDS TO GET PERPETUATED IN THE NEXT JOB AS COMPANIES UNFAIRLY TAKE ADVANTAGE OF THE LOW STARTING POINT FOR A RECENT COLLEGE GRADUATE TELLING TALL TALES CAN OFFER A WAY TO ESCAPE A ROOKIE PAY SCALE AND MOVE INTO THE VETERANS' LEAGUE TAKE COMPUTER SPECIALIST JOHN LAFARGE FOUR YEARS AFTER GRADUATING FROM COLLEGE HE SAYS HE FAILED TO PERSUADE HIS DALLAS HIGHTECHNOLOGY EMPLOYER TO ALIGN HIS SALARY MORE CLOSELY WITH THAT OF HIS MORE SEASONED COLLEAGUES HE SAYS HE PERFORMED THE SAME WORK AND EVEN SHOWED THE EXPERIENCED COLLEAGUES NEW TECHNIQUES HE HAD LEARNED IN SCHOOL SO IN JANUARY 1992 MR LAFARGE BEGAN JOB HUNTING AND INFLATED HIS SALARY HE LANDED A JOB PAYING IN THE 50000 RANGE ABOUT 20 MORE THAN HE USED TO MAKE I'M NOW GETTING WHAT I'M WORTH EXPLAINS THE 28YEAROLD MR LAFARGE WHO IS WORKING IN THE WASHINGTON DC AREA FOR A CONSUMERPRODUCTS COMPANY I WAS BEING CHEATED BEFORE SOME PEOPLE RATIONALIZE THEIR DECEPTION BY INCLUDING NONSALARY BENEFITS IN THEIR PAY DISCLOSURES THEY PAD THEIR MOST RECENT SALARY FOR INSTANCE WITH CAR REIMBURSEMENTS COUNTRYCLUB MEMBERSHIPS AND EVEN HEALTHCLUB COSTS OR THEY FIGURE IN FUTURE BONUSES AND EXPECTED PAY INCREASES WHEN INTERVIEWING FOR AN ADJUSTER'S JOB WITH A NEW YORK CITY INSURER LAST SUMMER ONE NEW JERSEY WOMAN INCREASED HER 48000 SALARY BY ABOUT 15 AND THEN ADDED THE ANNUAL COST OF KEEPING HER CAR IN A NEW YORK PARKING GARAGE THE PROSPECTIVE EMPLOYER BOUGHT IT JOHN LUCHT A NEW YORK EXECUTIVE RECRUITER AND AUTHOR OF THE RECENT BOOK RITES OF PASSAGE AT 100000+ SUPPORTS SUCH CREATIVE SALARYENHANCING PLOYS HE SUGGESTS THAT MANAGERS USE THEIR EMPLOYER'S COMPENSATION SUMMARIES WHICH TALLY SALARY HEALTHCARE INSURANCE COVERAGE PENSION PROFIT SHARING AND OTHER BENEFITS AS THEIR TOTAL SALARY EVEN CORPORATE SCHOLARSHIPS WON BY AN INDIVIDUAL'S CHILDREN SHOULD BE COUNTED IN THAT FIGURE HE ADDS A PERSON CAN TRUTHFULLY GIVE A WIDE RANGE OF FIGURES WHEN ASKED ABOUT COMPENSATION MR LUCHT SAYS IF THE COMPANY BALKS THEN YOU CAN GIVE THEM A SUMMARY OF THESE BENEFITS AND NEGOTIATE IN CERTAIN CASES JOB HUNTERS TRY TO LAND FATTER SALARIES BY FABRICATING TITLES OR COLLEGE DEGREES PERSONNEL OFFICIALS COMPLAIN THAT MANY APPLICANTS CLAIM TO BE A VICE PRESIDENT WHEN IN FACT THEY ARE ONLY A MANAGER CONSIDER THE CASE OF JAMES FANG WHO LANDED A 65000AYEAR POST AS INTERNATIONAL TRADE DIRECTOR FOR THE CITY OF SAN FRANCISCO IN 1992 ON HIS RESUME MR FANG LISTED THE WORDS HASTINGS COLLEGE OF THE LAW 1987 AND CALIFORNIA BAR EXAMINATION PASSAGE LEADING HIS SUPERIORS TO BELIEVE HE WAS A LAWYER AND CREATING A RUCKUS WHEN THEY DISCOVERED THAT HE WASN'T MR FANG IN FACT DID ATTEND HASTINGS ALTHOUGH HE NEVER GRADUATED AND HE NEVER PASSED THE BAR EXAM MR FANG SAYS PEOPLE MISREAD HIS RESUME HE LATER PUBLICLY APOLOGIZED FOR WHAT HE CALLED POOR JUDGMENT HE STILL HOLDS HIS POST CORPORATIONS ARE SEEKING TO REIN IN SALARY STORYTELLERS IN A NUMBER OF WAYS SOME EMPLOYERS ARE WORKING HARDER AT NAILING DOWN SALARY SCALES FOR VARIOUS POSITIONS AT SMALL MEDIUM AND LARGE BUSINESSES FOR INSTANCE AMERICAN TELEPHONE & TELEGRAPH CO IN BASKING RIDGE NJ AND LINTAS THE NEW YORK ADVERTISING FIRM HAVE BEGUN TO PREPARE ROUGH PAY BOUNDARIES FOR VARIOUS JOBS USING STUDIES FROM INDUSTRY ASSOCIATIONS COMPENSATIONCONSULTING FIRMS AND INTERNAL DATA LINTAS HAS GOTTEN A PRETTY GOOD FIX ON APPROPRIATE SALARY RANGES EXPLAINS MR BILLINGS THE HUMANRESOURCES DIRECTOR WITH SUCH INFORMATION YOU DON'T HAVE TO BE A ROCKET SCIENTIST TO FIGURE OUT WHEN SOMEONE IS EXAGGERATING HE ADDS SOME EXECUTIVE RECRUITERS ARE STARTING TO VERIFY SALARY LEVELS BY DEMANDING W2 INCOME FORMS FROM JOB SEEKERS TONY WG LORD VICE PRESIDENT OF AT KEARNEY INC'S EXECUTIVESEARCH PRACTICE SAYS HE NOW TELLS ALL CANDIDATES THAT THEY MUST SUBMIT THE FORMS AND THAT THEIR REFERENCES AND DEGREES WILL BE SCRUPULOUSLY CHECKED MY JOB IS TO DEAL WITH FACT NOT FANTASY SAYS MR LORD WHAT'S MORE THE NEW SYSTEM HELPS TO AVOID ANY EMBARRASSMENT WHEN PEOPLE WHO ARE MAKING 40000 CLAIMED THAT THEY WERE MAKING 150000 BUT EVEN SUCH WELLCRAFTED PLANS AREN'T FOOLPROOF EXECUTIVE RECRUITERS COMPLAIN THAT AT LEAST 25 OF JOB CONTENDERS REFUSE TO PRODUCE W2 FORMS SAYS MARILYN MOATS KENNEDY A CAREER CONSULTANT AND NEWSLETTER EDITOR IN WILMETTE ILL ONE 60000AYEAR MANAGER FOUND A WAY TO SABOTAGE A POTENTIAL EMPLOYER'S PERSISTENT REQUEST FOR HIS W2 HE FUDGED AFTER DETERMINING A REASONABLE HIGHER SALARY HE CALCULATED ALL THE CORRESPONDING TAX WITHHOLDINGS THEN HE FOUND A COMPUTERIZED TYPEWRITER THAT MATCHED THOSE HIS COMPANY HAD USED TO FILL OUT THE FORMS IT WAS A CINCH FIGURING OUT THE PROPER WITHHOLDING EQUATIONS FOR A HIGHER SALARY ISN'T TOO DIFFICULT CONFESSES THE 38YEAR OPERATIONS MANAGER WHOSE RUSE GOT HIM A 76000 JOB WITH A COMPUTER COMPANY IN CALIFORNIA'S SILICON VALLEY FINDING THE RIGHT TYPEWRITER THOUGH WAS A BEAR MS AMPARANO LOPEZ IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9304210155 930421 WEEKLY YIELDS ON CDS SHOWED LITTLE CHANGE NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE LITTLE CHANGED IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS REMAINED AT 266 FOR THE FOURTH CONSECUTIVE WEEK ACCORDING TO AN 18BANK SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS SLIPPED TO 480 FROM 484 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS INCHED DOWN TO 308 FROM 310 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD REMAINED AT 509 THE SURVEY SAID ON LARGEDENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 90000 AND UP THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE EDGED DOWN TO 270 FROM 272 ON FIVEYEAR JUMBOS THE AVERAGE SLID TO 488 FROM 492 ACCORDING TO BANXQUOTE 9304210154 930421 PANEL TO SUGGEST US SCHOOLS COLLECT MORE COMPREHENSIVE DATA ON STUDENTS BY ROCHELLE SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A PANEL OF TOP GOVERNMENT LEADERS IS EXPECTED TO RECOMMEND TODAY THAT SCHOOLS START COLLECTING REAMS OF NEW INFORMATION ON INDIVIDUAL STUDENTS RANGING FROM THEIR BIRTH WEIGHT TO WHETHER THEY REGISTER TO VOTE AT AGE 18 THE NATIONAL EDUCATION GOALS PANEL WHICH IS COMPOSED OF GOVERNORS CONGRESSMEN AND ADMINISTRATION OFFICIALS ALSO WILL LIKELY SUGGEST THAT SCHOOLS START TREATING CITIZENSHIP AS A BASIC ACADEMIC SUBJECT DEVISING WAYS TO MEASURE STUDENT EFFORTS AT BECOMING GOOD CITIZENS THE PANEL WANTS MORE COMPREHENSIVE STUDENT RECORDS TO DETERMINE WHETHER THE COUNTRY IS ACHIEVING ITS SIX MAIN EDUCATION GOALS THESE GOALS WHICH PRESIDENT CLINTON WANTS WRITTEN INTO FEDERAL LAW AS PART OF THE EDUCATION PROGRAM HE WILL ANNOUNCE TODAY INCLUDE ENSURING THAT CHILDREN ARE READY FOR SCHOOL THAT THEY ARE THE WORLD'S HIGHEST ACHIEVERS IN MATH AND SCIENCE AND THAT AT LEAST 90 OF THEM GRADUATE FROM HIGH SCHOOL WE SIMPLY DON'T HAVE AN ACCURATE PICTURE OF WHERE WE ARE NATIONALLY SAID LAURA LANCASTER A SPOKESWOMAN FOR THE GOALS PANEL EXPLAINING THAT NOT ALL STATES COLLECT THE SAME INFORMATION ABOUT STUDENTS IF STATES ADOPT THE PANEL'S RECOMMENDATIONS WHICH ARE VOLUNTARY THE FEDERAL GOVERNMENT COULD BETTER ASSESS THE STATUS OF EDUCATION IN THE US SHE SAID IT'S UNCLEAR HOW MUCH IT WOULD COST TO COLLECT THE DATA OR HOW MUCH OF THE COST THE FEDERAL GOVERNMENT WOULD PAY THE PANEL WOULDN'T USE THE NEW INFORMATION TO COMPARE STATES OR SCHOOL DISTRICTS AND MUCH OF THE DATA WOULD REMAIN CONFIDENTIAL WE DON'T WANT TO GIVE THE IMPRESSION THAT BIG BROTHER IS COLLECTING INFORMATION ABOUT INDIVIDUAL STUDENTS SAID ANDREW CUNNINGHAM AN ADVISER TO NEBRASKA GOV BENJAMIN NELSON THE PANEL'S CHAIRMAN THE BIGGEST CHANGE FOR MOST DISTRICTS WOULD INVOLVE LEARNING MORE ABOUT YOUNGSTERS AS THEY ENTER SCHOOL THE PANEL IS EXPECTED TO SUGGEST THAT SCHOOLS FIND OUT ABOUT STUDENTS' WEIGHT AT BIRTH THE DATE OF PRESCHOOLERS' LAST ROUTINE DOCTOR AND DENTIST APPOINTMENTS AND THE EXTENT OF MOTHERS' PRENATAL CARE IT WILL ALSO LIKELY SUGGEST THAT SCHOOLS ASK WHETHER THE CHILDREN WERE IN PRESCHOOL AND WHAT TYPE OF PROGRAM THEY ATTENDED CURRENTLY MOST SCHOOLS ONLY COLLECT INFORMATION ABOUT KINDERGARTENERS' IMMUNIZATIONS THE CLINTON ADMINISTRATION IS FOCUSING ON WHETHER CHILDREN ARE PREPARED TO ENTER SCHOOL BECAUSE THE EARLY EDUCATION YEARS ARE SO CRITICAL WHAT STUDENTS LEARN IN THEIR FIRST THREE GRADES SHAPES THEIR ABILITY AS LEARNERS MR CUNNINGHAM SAID ADDING THAT STUDENTS LEARN 60 OF THEIR ACADEMIC KNOWLEDGE IN THESE EARLY GRADES THE GOALS PANEL WILL LIKELY RECOMMEND THAT SCHOOLS TEST STUDENTS' KNOWLEDGE OF CIVICS TO ASSESS WHETHER THEY ARE ON THE WAY TO BECOMING GOOD CITIZENS THEY MAY ALSO SUGGEST THAT SCHOOLS COUNT HOW MANY STUDENTS PARTICIPATE IN COMMUNITY SERVICE PROGRAMS AND HOW MANY REGISTER TO VOTE WHEN THEY ARE 18 THE GROUP IS CONCERNED WITH CITIZENSHIP BECAUSE THE NATION'S THIRD EDUCATION GOAL CALLS FOR ENSURING THAT STUDENTS ARE COMPETENT IN A VARIETY OF SUBJECTS AND ARE PREPARED FOR RESPONSIBLE CITIZENSHIP THE OTHER GOALS ARE TO ENSURE THAT ALL ADULT AMERICANS ARE LITERATE AND POSSESS SKILLS AND KNOWLEDGE NEEDED FOR GOOD CITIZENSHIP AND ECONOMIC COMPETITIVENSS AND TO RID SCHOOLS OF DRUGS AND VIOLENCE 9304210153 930421 WHO'S NEWS UNION PACIFIC CORP UNION PACIFIC CORP BETHLEHEM PA JIM SHATTUCK 53 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT MARKETING AND SALES FOR UNION PACIFIC RAILROAD THE COMPANY'S MAIN UNIT BASED IN OMAHA NEB HE SUCCEEDS FRED HENDERSON 52 WHO RESIGNED TO PURSUE OTHER OPPORTUNITIES THE COMPANY SAID MR SHATTUCK HAD BEEN SENIOR VICE PRESIDENT MARKETING AT UNION PACIFIC RAILROAD 9304210152 930421 CANADIAN BUSINESSES ARE MORE OPTIMISTIC CONSUMERS STILL WORRY OTTAWA CANADIAN BUSINESS CONFIDENCE STRENGTHENED IN THE FIRST QUARTER BUT CONSUMERS REMAINED WORRIED ABOUT THEIR PROSPECTS THE CONFERENCE BOARD OF CANADA REPORTED THE ECONOMIC RESEARCH AND ADVISORY ORGANIZATION SAID ITS BUSINESS CONFIDENCE INDEX REACHED ITS HIGHEST LEVEL IN FOUR YEARS IN THE JANUARYMARCH PERIOD RISING 59 FROM THE PREVIOUS THREE MONTHS THE INDEX CLIMBED TO 1451 USING A BASE OF 100 FOR 1977 A MAJORITY OF COMPANIES SURVEYED BY THE BOARD EXPECT THEIR PROFITABILITY TO IMPROVE OVER THE NEAR TERM AND 685 INDICATED THEY PLAN TO INCREASE SPENDING ON PLANT AND EQUIPMENT OVER THE NEXT SIX MONTHS THE BOARD SAID ITS INDEX OF CONSUMER ATTITUDES ROSE 5 IN THE FIRST QUARTER BUT REMAINED BELOW THE LEVELS OF LAST SPRING AND SUMMER THE INDEX ROSE TO 841 USING A BASE OF 100 FOR 1961 POOR EMPLOYMENT PROSPECTS DECLINING WAGE GAINS INCREASING TAXES AND GOVERNMENT CUTBACKS ARE FUELING CONSUMER PESSIMISM SAID PAUL DARBY THE BOARD'S FORECASTING DIRECTOR 9304210151 930421 WHO'S NEWS AMSCO INTERNATIONAL INC AMSCO INTERNATIONAL INC PITTSBURGH DANIEL P BARRY 45 YEARS OLD REJOINED THIS MAKER OF DECONTAMINATION AND INFECTIONCONTROL PRODUCTS AS CHIEF FINANCIAL OFFICER AND SENIOR VICE PRESIDENT FINANCE AND PLANNING MR BARRY HAD RESIGNED FROM THOSE POSITIONS IN FEBRUARY TO PURSUE PERSONAL INTERESTS 9304210150 930421 INTERNATIONAL TAIWAN'S EXPORT CONTRACTS RISE TAIPEI TAIWAN TAIWAN'S EXPORT CONTRACTS IN MARCH ROSE 13 FROM A YEAR EARLIER AND 10 FROM FEBRUARY TO 765 BILLION THE MINISTRY OF ECONOMIC AFFAIRS REPORTED THE MINISTRY ATTRIBUTED THE RISE MAINLY TO INCREASED DEMAND FROM THE RECOVERING US ECONOMY AND CONTINUOUSLY ACTIVE TRADE WITH HONG KONG 9304210149 930421 INTERNATIONAL SMITHKLINE POSTS RISE IN ITS PRETAX EARNINGS OF 12 FOR 1ST PERIOD SPECIAL TO THE WALL STREET JOURNAL LONDON SMITHKLINE BEECHAM PLC REPORTED A 12 JUMP IN FIRSTQUARTER PRETAX PROFIT AS SALES SURGED 26 BUOYED BY THE BRITISH POUND'S DECLINE AGAINST MOST MAJOR INTERNATIONAL CURRENCIES THE ANGLOAMERICAN DRUG CONCERN SAID PRETAX PROFIT IN THE QUARTER CLIMBED TO 306 MILLION FROM 272 MILLION AS SALES ROSE TO 152 BILLION FROM 121 BILLION BUT EVEN EXCLUDING EFFECTS OF CURRENCY FLUCTUATIONS PRETAX PROFIT GREW 11 WHILE SALES CLIMBED 10 SMITHKLINE'S FIRSTQUARTER SALES GROWTH WAS FUELED BY SEVERAL NEW DRUGS WHICH HADN'T BEEN AVAILABLE IN THE YEAREARLIER PERIOD SO QUARTERLY SALES GROWTH RATES ARE VIRTUALLY CERTAIN TO SLOW DURING THE REMAINDER OF THIS YEAR SMITHKLINE EXECUTIVES ALSO EMPHASIZED THAT PRICING PRESSURE WORLDWIDE PLUS PRESSURE FOR SWEEPING HEALTHCARE REFORM IN THE US LEAVES THE OUTLOOK FOR 1993 UNCERTAIN YET MANY ANALYSTS EXPECT THE COMPANY'S FULLYEAR PRETAX PROFIT TO CLIMB ABOUT 10 AND SALES EXCLUDING CURRENCY FACTORS ABOUT 11 SALES OF TAGAMET SMITHKLINE'S BIGGESTSELLING DRUG DROPPED SHARPLY IN THE QUARTER BUT ANALYSTS SAID THAT MAY HAVE BEEN DUE TO A MARKETING PLAN TO KEEP THE DRUG GOING AFTER ITS PATENT EXPIRATION IN MAY 1994 ANALYSTS SUGGEST SMITHKLINE HAS BEEN OFFERING MANAGEDCARE PROVIDERS HEFTY DISCOUNTS PERHAPS AS MUCH AS 25 IN EXCHANGE FOR LONGTERM SUPPLY CONTRACTS OF UP TO TWO YEARS 9304210148 930421 EXECUTIVE PAY A SPECIAL REPORT THE BOSS'S PAY CHIEF EXECUTIVES' CASH COMPENSATION CLIMBED FASTER LAST YEAR THAN AT ANY TIME SINCE 1988 TO ANALYZE THIS TREND THE WALL STREET JOURNAL ASKED WILLIAM M MERCER INC NEW YORK COMPENSATION CONSULTANTS TO SURVEY THE NATION'S BIGGEST COMPANIES THE SURVEY OF 350 PROXY STATEMENTS FOUND THAT THE MEDIAN INCREASE IN CEO ANNUAL PAY INCLUDING SALARIES AND BONUSES WAS 81 LAST YEAR THE HIGHEST SINCE 139 IN 1988 THE LATEST FIGURE ALSO OUTSTRIPPED THE 49 INCREASE IN PAY FOR WHITECOLLAR EMPLOYEES IN MERCER'S SAMPLE 159 CHIEF EXECUTIVES EXERCISED STOCK OPTIONS FOR A MEDIAN GAIN OF 654431 MEDIAN CEO TOTAL COMPENSATION INCLUDING SALARY BONUSES LONGTERM INCENTIVES AND THE VALUE OF RESTRICTED STOCK AT THE TIME OF THE GRANT CAME TO 15 MILLION IN 1992 SEE ACCOMPANYING TABLES WSJ APRIL 21 1993 SURVEY METHODOLOGY NEW SEC RULES FOR PROXY STATEMENTS REQUIRE ADDED DISCLOSURE OF THE COMPENSATION OF CHIEF EXECUTIVE OFFICER PLUS THE FOUR MOST HIGHLY COMPENSATED EXECUTIVES SINCE THESE REQUIREMENTS WERE NOT MANDATORY FOR THE PRE1993 FILINGS ABOUT 20 OF THE COMPANIES IN THE SAMPLE COMPILED WITH THE OLD REQUIREMENTS THE INDIVIDUALS LISTED IN THE TABLE WERE EITHER DESIGNATED OR WHERE NO SUCH TITLE WAS DISCLOSED WERE THE MORE HIGHLY PAID BETWEEN PRESIDENT AND CHAIRMAN OF THE BOARD 1992 SALARY DATA REFLECT THE BASE SALARY EARNED IN FISCAL 1992 EVEN IF DEFERRED OR PAID IN COMMON OR RESTRICTED COMMON STOCK 1992 BONUS DATA REFLECT ANNUAL BONUS EARNED IN FISCAL 1992 EVEN IF DEFERRED OR PAID IN COMMON OR RESTRICTED COMMON STOCK 1992 BONUS/SALARY IS THE SUM OF SALARY AND BONUS ANY PAYMENT NOT RELATED TO SALARY OR ANNUAL BONUS EG DIRECTORS' FEES PERQUISITES INSURANCE PREMIUMS BUT REPORTED AS CASH COMPENSATION HAVE BEEN EXCLUDED WHERE POSSIBLE PERCENT CHANGE FROM 1991 INDICATES THE CHANGE IN SALARY/BONUS FROM 1991 TO 1992 PERCENT CHANGE DATA HAVE BEEN EXCLUDED FOR NEW CEOS AND IN CASES WHERE SALARY/BONUS DATA FOR FISCAL YEAR 1992 OR 1991 ARE NOT VALID LONGTERN COMPENSATION INCLUDES 1 GAINS FROM THE EXERCISE OF STOCK OPTIONS AND/OR STOCKAPPRECIATION RIGHTS 2 THE VALUE OF SHARES OF RESTRICTED STOCK OR RESTRICKED STOCK UNITS AT GRANT AND 3 THE VALUE OF PAYOUTS UNDER ANY OTHER LONGTERM INCENTIVE COMPENSATION PLAN TOTAL DIRECT COMPENSATION IS THE SUM OF SALARY/BONUS AND LONGTERM COMPENSATION COMPENSATION REQUIRED BY THE SEC TO BE DISCLOSED AS OTHER ANNUAL COMPENSATION EG PERQUISITES TAX REIMBURSEMENTS OR DIVIDEND EQUIVALENTS PAID ON OUTSTANDING LONGTERM GRANTS OR ALL OTHER COMPENSATION EG COMPANY CONTRIBUTIONS TO DEFINEDCONTRIBUTION PLANS OR PREMIUM PAYMENTS FOR SPLITDOLLAR LIFE INSURANCE IS NOT INCLUDED IN ANY OF THE FOREGOING FIGURES MATERIAL AMONTS PAID BUT EXCLUDED FROM TOTAL DIRECT COMPENATION HAVE BEEN NOTED SEPARATELY PRESENT VALUE OPTION GRANTS IS CALCULATED BY ASSUMING 10 ANNUAL STOCKPRICE APPRECIATION OVER THE FULL TERM OF THE 1992 OPTION GRANT AND DISCOUNTING THE ESTIMATED FUTURE GAIN BACK TO THE PRESENT AT A RATE OF 14 THIS REPRESENTS AN EXPECTED MARKET RATE OF RETURN THAT IS COMPRISED OF THE 1992 AVERAGE YIELD ON A 10YEAR TREASURY BOND 7 PLUS AN EQUITYRISK PREMIUM 7 THE SEC'S NEW REPORTING GUIDELINES SOUGHT TO STRIKE A BALANCE AMONG THE NEEDS OF SHAREHOLDERS MANAGEMENT AND INSTITUTIONAL INVESTORS IN PREPARING THE WALL STREET JOURNAL/WILLIAM M MERCER CEO COMPENSATION SURVEY THIS YEAR WE TOO SOUGHT TO RELECT THE VIEWS OF THESE CONSTITUENCIES AS A RESULT MERCER CONVENED A METHODOLOGY ADVISORY PANEL CONSISTING OF CORPORATE ACADEMIC AND INSTITUTIONAL SHAREHOLDER REPRESENTATIVES TO DISCUSS THE BEST WAY TO REPORT CEO COMPENSATION BECAUSE THE SEC GIVES COMPANIES A CHOCE IN HOW TO REPORT STOCKOPTION VALUES IT WAS NECESSARY TO DEVELOP A UNIFORM METHODOLOGY THAT WOULD PERMIT MEANINGFUL COMPARISON ACROSS COMPANIES COMPANIES COULD EITHER REPORT OPTION VALUES ON A GRANTDATE PRESENTVALUE BASIS USING A VALUATION METHODOLOGY SUCH AS BLACKSCHOLES OR A POTENTIAL REALIZABLE VALUE BASIS ASSUMING ANNUAL STOCKPRICE APPRECIATION OF 5 AND 10 GROWTH RATE COMBINED WITH A DISCOUNT RATE BASED ON THE CAPITAL ASSET PRICING MODEL CAPM TO CALCULATE THE ESTIMATED PRESENT VALUE OF THE FUTURE GAIN FOR ALL 1992 CEO STOCKOPTON GRANTS FACTORS THAT AFFECT THE DISCOUNT RATE CALCULATION INCLUDE THE MARKET PRICE AT GRANT OPTION TERM RISKFREE INTEREST RATE AND EQUITYRISK PREMIUM DIVIDED YIELD IS EXCLUDED AND STOK VOLATILITY RELATIVE TO THE OVERALL MARKET BETA IS ASSUMED TO BE ONE WHEN COMPANIES DID NOT DISCLOSE MARKET PRICE AT GRANT OR OPTION TERM TYPICAL PLAN PROVISIONS WERE USED THE SURVEY DATA PROVIDED CAN BE USED TO DIFFERENTIATE BETWEEN COMPENSATION PAID FOR PAST PERFORMANCE AND COMPENSATION POTENTIAL FOR FUTURE PERFORMANCE READERS SHOULD NOTE THAT ADDING TOTAL DIRECT COMPENSATION AND THE PRESENT VALUE OF OPTION GRANTS OR A TOTAL COMPENSATION VALUE IS LIKELY TO BE MISLEADING ESPECIALLY OVER MULTIYEAR PERIODS OVER TIME THE VALUE TO THE CEO OF THE OPTION GRANT MAY APPEAR TWICE ONCE AS AN ESTIMATED PRESENT VALUE AT GRANT AND THEN AGAIN ALMOST CERTAINLY WITH A DIFFERENT DOLAR VALUE WHEN THE CEO EXERCISES OPTION 9304210147 930421 LETTERS TO THE EDITOR THE 23RD PSALM WERE YOUR COPY EDITORS SLEEPING ON THE JOB BAD ENOUGH THAT THE APOSTROPHE IN IT'S SHOULD BE MISSING IN THE VERY SENTENCE IN WHICH DOROTHY RABINOWITZ CASTIGATES THE SCRIPTWRITER OF DIANA HER TRUE STORY FOR FAILING TO GET A GRIP ON THE KING'S ENGLISH TV PALACE REVOLTING LEISURE & ARTS APRIL 5 BUT TO CLAIM THAT FOR THOU ART WITH ME IS PART OF THE LORD'S PRAYER THE PHRASE YOU QUOTE BELONGS TO THE 23RD PSALM THE ONE THAT BEGINS THE LORD IS MY SHEPHERD WHILE THE LORD'S PRAYER IS THE ONE THAT BEGINS OUR FATHER WHO ART IN HEAVEN 9304210146 930421 POLITICS & POLICY RICKI TIGERT LAWYER AND FORMER AIDE AT FED IS TOP CONTENDER TO HEAD FDIC BY MICHAEL K FRISBY AND KENNETH H BACON STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON RICKI TIGERT A WASHINGTON LAWYER WHO DEALT WITH INTERNATIONAL BANKING ISSUES AT THE FEDERAL RESERVE BOARD HAS EMERGED AS THE LEADING CANDIDATE TO BECOME CHAIRWOMAN OF THE FEDERAL DEPOSIT INSURANCE CORP IF PRESIDENT CLINTON CHOOSES HER FOR THE JOB MS TIGERT WOULD SOLVE TWO PROBLEMS FACING THE ADMINISTRATION SHE WOULD HELP MR CLINTON OUT OF AN UNCOMFORTABLE CHOICE BETWEEN TWO PROMINENT ARKANSAS BANKERS ONE IS A FORMER TOP AIDE AND THE OTHER IS BEING BACKED BY A LEADING CLINTON CAMPAIGN FINANCIER AND AS THE FIRST WOMAN TO CHAIR THE FDIC SHE WOULD HELP MR CLINTON MEET HIS COMMITMENT TO APPOINT WOMEN AND MINORITIES TO HIGH POSITIONS SO FAR MR CLINTON'S MOST VISIBLE APPOINTMENTS IN THE FINANCIAL AREA HAVE BEEN WHITE MEN MS TIGERT 48 YEARS OLD IS A PARTNER IN THE FIRM GIBSON DUNN & CRUTCHER BEFORE JOINING THE FIRM SHE WAS THE FED'S ASSOCIATE GENERAL COUNSEL FOR INTERNATIONAL BANKING AND A LAWYER IN THE INTERNATIONAL DIVISION OF THE TREASURY DEPARTMENT MS TIGERT WAS AT THE FED WHILE SEPARATE INTERNATIONAL BANKING SCANDALS INVOLVING THE BANK OF CREDIT & COMMERCE INTERNATIONAL AND BANCA NAZIONALE DEL LAVORO WERE UNFOLDING THE SENATE BANKING COMMITTEE IS CERTAIN TO QUESTION HER ABOUT WHAT ROLE IF ANY SHE PLAYED IN MONITORING THOSE INSTITUTIONS HOWEVER A FORMER COLLEAGUE AT THE FEDERAL RESERVE BOARD EXPRESSED CONFIDENCE THAT THE SENATE WON'T FIND ANY REASON TO FAULT HER ACTIONS BECAUSE SHE HAD LITTLE OR NO INVOLVEMENT WITH THE BANKS AT ONE TIME GIBSON DUNN REPRESENTED SHEIK ZAYED BIN SULTAN ALNAHYAN THE RULER OF ABU DHABI AND THE CONTROLLING SHAREHOLDER IN BCCI BUT THIS WAS BEFORE MS TIGERT CAME TO THE FIRM LAST YEAR ALTHOUGH MS TIGERT HAS EMERGED AS THE TOP CHOICE OF THE WHITE HOUSE PERSONNEL OFFICE AND THE TREASURY OFFICIALS WHO ARE ADVISING MR CLINTON ON FINANCIAL REGULATORY APPOINTMENTS THE PRESIDENT HASN'T YET SIGNED OFF ON HER NOMINATION ON MONDAY MS TIGERT WAS INTERVIEWED BY TREASURY SECRETARY LLOYD BENSTEN MS TIGERT DECLINED TO COMMENT ON WHETHER SHE IS THE LEADING CANDIDATE FOR THE JOB THERE ARE AT LEAST TWO OTHER CANDIDATES IN THE RUNNING BOTH CLINTON FRIENDS FROM ARKANSAS WILLIAM BOWEN THE FORMER CHAIRMAN OF FIRST COMMERCIAL CORP THE STATE'S LARGEST BANK WAS MR CLINTON'S LAST CHIEF OF STAFF WHEN HE WAS GOVERNOR THE OTHER RAZORBACK CANDIDATE IS WILLIAM BRANDON A SMALLTOWN BANKER WHO HAS ACHIEVED POLITICAL VISIBILITY AS PRESIDENT OF THE AMERICAN BANKERS ASSOCIATION MR BRANDON HAS STRONG BACKING FOR THE FDIC JOB FROM WORTHEN BANKING CORP WHICH EXTENDED A 35 MILLION LINE OF CREDIT TO MR CLINTON'S PRESIDENTIAL CAMPAIGN WORTHEN'S LARGEST SHAREHOLDER IS JACKSON STEPHENS THE POWERFUL LITTLE ROCK FINANCIER MS TIGERT ALSO KNOWS MR CLINTON SHE HAS ATTENDED THE RENAISSANCE WEEKENDS THE NEW YEAR'S GATHERINGS OF BABY BOOMERS THAT MR AND MRS CLINTON HAVE ATTENDED FOR YEARS IN HILTON HEAD SC RECENTLY THE CONGRESSIONAL BLACK CAUCUS AND OTHERS HAVE BEEN PROMOTING FRANCISCO BORGES THE FORMER TREASURER OF CONNECTICUT FOR THE POST BUT MR BORGES WHO WOULD ADVANCE MR CLINTON'S GOAL OF HIRING MORE MINORITIES HAS LIMITED BANKING EXPERIENCE THE FDIC CHAIRMAN IS IN CHARGE OF A LARGE BUREAUCRACY THAT RUNS THE BANK DEPOSITINSURANCE FUND CLOSES FAILED BANKS AND SERVES AS THE PRIMARY FEDERAL REGULATOR FOR ABOUT 7000 BANKS BECAUSE THE FIVEMEMBER FDIC BOARD ALSO INCLUDES THE COMPTROLLER OF THE CURRENCY WHO REGULATES NATIONAL BANKS AND THE DIRECTOR OF THE OFFICE OF THRIFT SUPERVISION WHICH OVERSEES SAVINGS AND LOANS IT OFTEN TAKES A LEADING ROLE IN COORDINATING BANKING POLICY 9304210145 930421 WHO'S NEWS EMULEX CORP EMULEX CORP COSTA MESA CALIF PAUL F FOLINO WAS ELECTED A DIRECTOR OF THIS MAKER OF COMPUTERSTORAGE AND NETWORKING PRODUCTS EXPANDING THE BOARD TO SIX MEMBERS MR FOLINO 47 YEARS OLD WAS ALSO NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE COMPANY'S NETWORK SYSTEMS DIVISION HE PREVIOUSLY WAS PRESIDENT AND CHIEF OPERATING OFFICER OF THOMASCONRAD CORP 9304210144 930421 SLM TO BUY TOY FACTORY INC NEW YORK SLM INTERNATIONAL INC SAID IT ENTERED INTO AN AGREEMENT TO ACQUIRE TOY FACTORY INC MOUNTAINSIDE NJ TERMS WEREN'T DISCLOSED PRIVATELY HELD TOY FACTORY WHICH MAKES CHILDREN'S GAMES REPORTED SALES OF 10 MILLION AND SAID IT EXPECTS 15 MILLION IN 1993 SLM INTERNATIONAL A MAKER OF SPORTING GOODS AND TOYS REPORTED 232 MILLION IN SALES LAST YEAR 9304210143 930421 DPL VOTE ON SHARES DAYTON OHIO DPL INC SAID SHAREHOLDERS VOTED TO BOOST THE NUMBER OF AUTHORIZED COMMON SHARES TO 250 MILLION FROM 120 MILLION THE ELECTRIC AND NATURAL GAS UTILITY SAID THE INCREASE APPROVED AT THE ANNUAL MEETING GIVES IT GREATER FLEXIBILITY FOR ACTIONS SUCH AS STOCK SPLITS THE COMPANY HAS 1035 MILLION SHARES OUTSTANDING 9304210142 930421 HOUSE PANEL URGES SPEED IN COMBATING PENSIONFUND DEBT BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS ACTING TOO SLOWLY IN DECIDING HOW TO COPE WITH A GROWING DEFICIT OF THE GOVERNMENT'S PENSIONFUND REGULATORY AGENCY AN INFLUENTIAL HOUSE PANEL CHIEF CHARGED IN A HEARING BEFORE THE HOUSE OVERSIGHT SUBCOMMITTEE REP JJ PICKLE THE PANEL'S CHAIRMAN SAID LEGISLATION MUST BE ENACTED SOON TO HEAD OFF POSSIBLE UNRESTRICTED PENSION INCREASES THAT COULD EMERGE FROM AUTOINDUSTRY LABOR TALKS PLANNED FOR THIS SUMMER BUT MARTIN SLATE RECENTLY NAMED PENSION BENEFIT GUARANTY CORP EXECUTIVE DIRECTOR BY LABOR SECRETARY ROBERT REICH ESTIMATED THAT AN ADMINISTRATION TASK FORCE WOULDN'T BE READY UNTIL MIDSEPTEMBER TO ISSUE ITS RECOMMENDATIONS FOR RESOLVING THE UNDERFUNDING AND THE AGENCY'S FINANCIAL PROBLEMS UNDERFUNDING BY A NUMBER OF LARGE EMPLOYERS THREATENS TO FURTHER INFLATE THE 27 BILLION DEFICIT OF THE AGENCY REP PICKLE THE TEXAS DEMOCRAT SAID THE AGENCY INSURES DEFINEDBENEFIT PENSION PLANS TAKING OVER THEIR COMMITMENTS AFTER THOSE PLANS ARE TERMINATED IN BANKRUPTCY PROCEEDINGS OR OTHERWISE BY MIDSEPTEMBER SOME OF THE WORSTFUNDED PENSION PLANS THOSE IN THE AUTOMOBILE INDUSTRY WILL PROBABLY CONTAIN NEW BENEFIT INCREASES FROM LABORCONTRACT NEGOTIATIONS BETWEEN THE BIG THREE AUTO MAKERS AND THE UNITED AUTO WORKERS UNION REP PICKLE CHARGED IF HISTORY REPEATS ITSELF THERE WILL BE BILLIONS OF DOLLARS OF NEW PENSION PROMISES MADE AND PERHAPS NOT ONE PENNY PUT INTO THE PENSION POT BY SOME OF THESE COMPANIES A BILL PUSHED BY MR PICKLE AND BY SEN DAVID PRYOR D ARK AND SEN JAMES JEFFORDS R VT WOULD CURB UNDERFUNDING BY AUTO PRODUCERS AND OTHER COMPANIES ONE PROVISION WOULD REQUIRE EMPLOYERS TO PUT UP COLLATERAL TO COVER NEW BENEFIT RISES IN UNDERFUNDED PLANS LESSENING THE AGENCY'S EXPOSURE IF THOSE PLANS WERE TERMINATED IN AN INTERVIEW SEN JEFFORDS AGREED THAT THERE'S NO REASON TO WAIT BEFORE ENACTING LEGISLATION YOU DON'T GIVE AWAY FUTURE MONEY WHEN YOU HAVEN'T PAID FOR THE OLD PROMISES MR PICKLE NOTED THAT DURING HOUSE TESTIMONY MARCH 9 LEON PANETTA THE NEW WHITE HOUSE BUDGET CHIEF INDICATED THAT HE EXPECTED THE TASK FORCE TO FINISH ITS WORK BY MIDAPRIL IN TIME TO MAKE ITS PENSION AGENCY RECOMMENDATIONS PART OF THE FISCAL 1994 CONGRESSIONAL BUDGET RECONCILIATION PROCESS WHICH BEGINS SOON BUT WITH THE MIDSEPTEMBER ESTIMATE MR PICKLE ARGUED THAT THE AUTO INDUSTRY WOULD IN EFFECT BE EXEMPTED FROM THE LEGISLATION'S REQUIREMENTS FOR THREE YEARS THE AUTO INDUSTRY IS NEGOTIATING NEW LABOR PACTS TO REPLACE THOSE EXPIRING SEPT 14 THERE ISN'T ANYTHING MAGIC ABOUT THE SEPT 15 DATE MR PICKLE SNAPPED IT'S JUST A DATE THAT COMES AFTER THE AUTO COMPANIES HAVE NEGOTIATED NEW PENSION BENEFITS GENERAL MOTORS CORP CHRYSLER CORP AND THE UAW HAD NO COMMENT ON REP PICKLE'S ALLEGATIONS BUT THE UAW HAS SAID IT OPPOSES ANY GOVERNMENT ACTION THAT WOULD INTERFERE WITH PENSIONBENEFIT DISCUSSION IN THE LABOR TALKS UAW BARGAINERS ARE ALWAYS UNDER A LOT OF PRESSURE TO COME THROUGH FOR PRESENT AND FUTURE RETIREES IN CONTRACT NEGOTIATIONS A UAW OFFICIAL HAS SAID UNDERFUNDING ISN'T A WORRY HE SAID BUT IF WE THOUGHT THERE WAS ANY DANGER OF DEFAULT WE MIGHT TAKE A SOMEWHAT DIFFERENT VIEW THE BIG THREE AUTO MAKERS ADDED 5 BILLION TO 7 BILLION IN PENSION BENEFITS BETWEEN 1989 AND 1991 BOOSTING THEIR MONTHLY PAYMENT 16 OR MORE ACCORDING TO PENSION AGENCY'S ESTIMATES THOUGH GM AND CHRYSLER HAD SIZABLE UNDERFUNDING BOTH COMPANIES HAVE SAID THEY PLAN TO NARROW THE UNDERFUNDING GAP TESTIFYING YESTERDAY THE PENSION AGENCY'S MR SLATE SAID THE ADMINISTRATION TASK FORCE NEEDED THE EXTRA TIME TO CONFER WITH CONGRESS EMPLOYERS AND OTHERS BUT HE SAID ANY INCREASE IN UNDERFUNDING IS A CONCERN MR SLATE ALSO CHARACTERIZED THE AGENCY'S FINANCIAL DIFFICULTY IN MORE MODERATE TERMS THAN HIS PREDECESSOR JAMES LOCKHART WHO ARGUED VIGOROUSLY FOR QUICK CONGRESSIONAL ACTION TO AVERT ANOTHER SAVINGSANDLOANTYPE CRISIS BUT MR SLATE SAID THAT WHILE THERE ISN'T ANY CURRENT AGENCY CASHFLOW PROBLEM AND THE AGENCY WILL BE ABLE TO PAY PROJECTED BENEFITS AS FAR AS THE EYE CAN SEE THE AGENCY IS CONCERNED THAT IT FACES AN EXPANDING DEFICIT THAT COULD BECOME A PROBLEM WITHOUT LEGISLATIVE CHANGES 9304210141 930421 LAW AGEBIAS LAW CAN'T BE USED IN SUITS CHARGING PENSION VIOLATIONS IN LAYOFFS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT PARTIALLY SHIELDED EMPLOYERS FROM LAWSUITS CLAIMING THAT THEY DISCRIMINATED AGAINST OLDER WORKERS BY INTERFERING WITH THEIR PENSION BENEFITS THE HIGH COURT RULED UNANIMOUSLY THAT THE POTENT FEDERAL AGE DISCRIMINATION IN EMPLOYMENT ACT CAN'T BE USED AS A COURTROOM WEAPON BY AN OLDER PERSON WHO ALLEGES A VIOLATION OF PENSION RIGHTS THAT ARE BASED ON YEARS OF EMPLOYMENT BESIDES AFFECTING PENSION DISPUTES THE DECISION APPEARS TO PROTECT EMPLOYERS WHO LAY OFF VETERAN WORKERS AS LONG AS AGE ITSELF ISN'T A CRITERION AGEDISCRIMINATION LITIGATION HAS INCREASED IN RECENT YEARS AS MANY COMPANIES TRY TO GET RID OF OLDER BETTERPAID WORKERS IN AN EFFORT TO TRIM COSTS YESTERDAY'S RULING WON'T PREVENT THESE WORKERS FROM FILING LAWSUITS ALLEGING PENSION VIOLATIONS UNDER THE SEPARATE FEDERAL PENSIONPROTECTION STATUTE BUT THE HIGH COURT DECISION WILL REQUIRE OLDER WORKERS TO SHOW MORE THAN INTERFERENCE WITH RETIREMENT BENEFITS IN ORDER TO GET A CRACK AT COLLECTING DOUBLE DAMAGES WHICH ARE AVAILABLE UNDER THE AGEBIAS LAW THE HIGH COURT TEMPERED THE VICTORY FOR EMPLOYERS BY MAKING IT EASIER FOR OLDER WORKERS WHO CAN PROVIDE OTHER EVIDENCE OF AGE BIAS TO WIN THE LARGER DAMAGE AWARDS THE FEDERAL AGEDISCRIMINATION LAW ALLOWS JUDGES TO DOUBLE JURY AWARDS WON BY WORKERS WHO PROVE THEY WERE WILLFULLY FIRED DEMOTED OR OTHERWISE HARMED BECAUSE OF THEIR AGE THE JUSTICES SAID YESTERDAY THAT TO PROVE WILLFULNESS OLDER WORKERS DON'T HAVE TO SHOW THAT AN EMPLOYER'S CONDUCT WAS OUTRAGEOUS OR EVEN THAT AGE WAS THE PREDOMINANT FACTOR MOTIVATING THE EMPLOYER THE JUSTICES SAID LOWER COURTS THAT IMPOSED THESE MORESTRINGENT REQUIREMENTS ON PLAINTIFFS WERE WRONG INSTEAD THE HIGH COURT RULED THAT PLAINTIFFS MUST MERELY SHOW THAT EMPLOYERS VIOLATED THE AGEBIAS LAW KNOWINGLY OR RECKLESSLY IN A SOMEWHAT PERPLEXING ASIDE THE HIGH COURT SUGGESTED THAT THE AGEDISCRIMINATION LAW MAY NOT APPLY IN CASES INVOLVING SEEMINGLY NEUTRAL EMPLOYER POLICIES THAT HAVE THE EFFECT OF TREATING OLDER PEOPLE MORE HARSHLY THAN OTHERS MANY LOWER COURTS HAVE ASSUMED THAT THE BIAS LAW DID APPLY IN SUCH CASES THE BRIEF COMMENT BY JUSTICE SANDRA DAY O'CONNOR WHO WROTE THE COURT'S MAIN OPINION COULD BE INTERPRETED AS AN INVITATION TO BUSINESS ADVOCATES TO URGE THE ADOPTION OF THIS PROEMPLOYER VIEW IN A FUTURE CASE LEGAL EXPERTS SAID YESTERDAY'S RULING WILL FAVOR EMPLOYERS IN SOME DISPUTES AND OLDER WORKERS IN OTHERS THE HIGH COURT'S REFUSAL TO RECOGNIZE A VIOLATION OF PENSION RIGHTS AS EVIDENCE OF AGE DISCRIMINATION WILL HAVE A MAJOR EFFECT BECAUSE SO MANY OF THESE AGEDISCRIMINATION CASES INVOLVE PENSION CLAIMS PREDICTED STEPHEN BOKAT OF THE US CHAMBER OF COMMERCE THE DISCOURAGING NEWS FOR BUSINESS WAS THAT YESTERDAY'S DECISION WILL MAKE IT EASIER FOR EMPLOYEES TO WIN DOUBLE DAMAGES IN SOME AGEBIAS SUITS THAT THREAT GIVES PLAINTIFFS AN EDGE IN PRETRIAL SETTLEMENT TALKS WHERE MOST OF THESE DISPUTES GET RESOLVED THE HIGH COURT DECISION WAS A PARTIAL VICTORY FOR A PRIVATELY HELD MASSACHUSETTS PAPER COMPANY THAT WAS HIT WITH A 420000 AGEDISCRIMINATION AWARD FOR FIRING AN OLDER WORKER SHORTLY BEFORE HE BECAME ELIGIBLE FOR PENSION BENEFITS A FEDERAL APPEALS COURT DOUBLED THAT AWARD BASED ON ITS FINDING THAT THE BIAS HAD BEEN WILLFUL THE SUPREME COURT SET ASIDE THE APPEALSCOURT RULING AND INSTRUCTED THE LOWER COURT TO RETHINK THE CASE IN LIGHT OF YESTERDAY'S DECISION HAZEN PAPER CO VS BIGGINS 9304210140 930421 CORPORATE FOCUS SUNDSTRAND AGGRESSIVELY WAITS OUT STORM IN INDUSTRY AEROSPACE CONCERN MOVES CORPORATE PIECES TO REPOSITION ITSELF FOR UPTURN BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL ROCKFORD ILL SUNDSTRAND CORP IS MAKING ALL THE RIGHT MOVES BUT IT'S IN ALL THE WRONG INDUSTRIES AT LEAST FOR NOW THE AIRCRAFTCOMPONENT MAKER SERVES AN AEROSPACE MARKET THAT HAS BEEN CLOBBERED BY THE AIRLINE INDUSTRY'S TRAVAILS AND BY PENTAGON CUTBACKS AND GROWTH PLANS FOR THE COMPANY'S OTHER SEGMENT ITS INDUSTRIALPRODUCTS GROUP HAVE BEEN HOBBLED BY THE ECONOMY'S WEAKNESS THE MOVES ITS HIGHLY REGARDED TOP OFFICER HAS TAKEN TO REORIENT THE COMPANY AND BOOST EFFICIENCIES ARE THOUGHT TO HAVE POSITIONED THE COMPANY WELL FOR ANY UPTURNS STILL IN SPITE OF BEING AS ONE ANALYST PUTS IT A WELLRUN COMPANY WITH HIGH RETURNS AND DOMINANT MARKET POSITIONS SUNDSTRAND HAS BEEN FORCED TO MAKE DEEP AND PAINFUL CUTS IN ITS AEROSPACE WORK FORCE AND MOODY'S INVESTORS SERVICE INC RECENTLY LOWERED ITS DEBT RATING CITING CONTINUING PRESSURES ON MOST OF THE COMPANY'S KEY MARKETS BUT RATHER THAN HUNKER DOWN UNTIL THE DEPRESSED CONDITIONS TURN UP SUNDSTRAND HAS AGGRESSIVELY CONTINUED TO MOVE CORPORATE PIECES AROUND HARRY C STONECIPHER CHAIRMAN AND CHIEF EXECUTIVE OFFICER HAS BEEN BUYING AN OPERATION HERE AND SELLING ONE THERE IN AN ONGOING EFFORT TO REPOSITION THE COMPANY HIS THREEPRONGED STRATEGY TO CREATE A BETTER MIX BETWEEN AEROSPACE AND THE LESSSIZABLE INDUSTRIAL OPERATION TO INCREASE INTERNATIONAL BUSINESS AND TO DIVERSIFY FURTHER THROUGH AN UNSPECIFIED THIRD LEG THAT WOULD LESSEN SUNDSTRAND'S CURRENT VULNERABILITY TO THE ECONOMY'S UPS AND DOWNS AT A TIME WHEN HARDPRESSED DEFENSE COMPANIES ARE LOOKING TO BROADEN THEIR PRODUCT LINES SUNDSTRAND'S EARLY MOVE AWAY FROM A DEFENSE FOCUS RAISES THE POSSIBILITY THAT THE HIGH CASHFLOW COMPANY COULD EMERGE AS A POSSIBLE BUYOUT CANDIDATE ITS DEFENSEINDUSTRY LINKS REMAIN IN PLACE SUNDSTRAND'S BOARD INCLUDES A RETIRED CHAIRMAN OF MARTIN MARIETTA CORP FOR EXAMPLE CITING COMPANY POLICY MR STONECIPHER DECLINES TO SAY IF SUNDSTRAND HAS RECEIVED ANY OVERTURES OR WHAT RECEPTION IT WOULD GIVE ANY SUCH PROPOSAL I DON'T SPEND ANY TIME WORRYING ABOUT IT HE SAYS ADDING THAT HE CONSIDERS SUNDSTRAND AN ATTRACTIVE COMPANY TO SHAREHOLDERS AND HE ADDS WE'RE PROBABLY AN ACQUISITION CANDIDATE IN THAT SENSE THE FORMER GENERAL ELECTRIC CORP OFFICIAL WAS BROUGHT IN AS EXECUTIVE VICE PRESIDENT IN 1987 AS SUNDSTRAND FOUGHT GOVERNMENT CHARGES IT HAD FRAUDULENTLY INFLATED COSTS ON DEFENSE CONTRACTS HE BECAME CEO AND PRESIDENT IMMEDIATELY AFTER THE COMPANY SETTLED THE MATTER BY PLEADING GUILTY AND PAYING 199 MILLION IN PENALTIES SOON AFTERWARD MR STONECIPHER BEGAN REDUCING THE COMPANY'S RELIANCE ON DEFENSE CONTRACTING HE DID IT BY SIMPLY DECLINING TO BID ON THE INCREASINGLY COMMON FIXEDPRICE PENTAGON CONTRACTS SUCH CONTRACTS SO SUBJECT TO COSTLY DESIGN CHANGES AS THEY MOVE FORWARD HAVE ABOUT SIX LEVELS OF RISK THAT AREN'T PRESENT IN CONVENTIONAL BUSINESS HE SAYS TODAY SUNDSTRAND'S MILITARY SALES REPRESENT JUST 22 OF OVERALL RECEIPTS NEARLY HALF THE 42 THEY REPRESENTED FIVE YEARS AGO THE COMPANY PROJECTS THEY WILL ACCOUNT FOR ONLY 15 OF SALES BY 1995 THAT DECLINING PROPORTION REFLECTS IN PART THE GROWTH OF SUNDSTRAND'S INDUSTRIALPRODUCTS GROUP AND THE INCREASING IMPORTANCE OF THE COMPANY'S CIVILIANAEROSPACE SALES BUT FOR MORE THAN A YEAR NOW LOSSPLAGUED AIRLINES HAVE BEEN CANCELING OR DEFERRING AIRCRAFT ORDERS THEY PLACED EARLIER WITH BIG SUNDSTRAND CLIENTS BOEING CO MCDONNELL DOUGLAS CORP AND AIRBUS INDUSTRIE AS SALES TO AIRCRAFT MANUFACTURERS TURNED SOFT AFTERMARKET SALES IN WHICH SUNDSTRAND SELLS REPLACEMENT PARTS DIRECTLY TO AIRLINES ROSE LAST YEAR THAT ISN'T SURPRISING JUST AS HARD TIMES HELP CARREPAIR SHOPS BECAUSE PENNYPINCHING AUTO OWNERS TRY TO SQUEEZE ANOTHER YEAR FROM THE OLD JALOPY AIRLINES BUY MORE PARTS WHEN THEY DEFER NEW AIRCRAFT PURCHASES HOWEVER SUCH SALES SOFTENED IN THE LATEST PERIOD AND MOODY'S WARNED RECENTLY THAT THE PROFITABILITY OF SUNDSTRAND'S AFTERMARKET BUSINESS IS UNDER PRESSURE BECAUSE OF THE AIRLINE INDUSTRY'S WEAKENED FINANCIAL SITUATION MR STONECIPHER DOESN'T SEE THE COMMERCIAL AEROSPACE BUSINESS GETTING BETTER ANYTIME SOON BUT HE STILL BELIEVES IT WILL BE ONE OF THE PREMIER BUSINESSES OVER THE NEXT 20 YEARS CITING THE PROJECTED 4 TO 6 ANNUAL GROWTH IN AIR TRAVEL SOONER OR LATER CARRIERS WILL HAVE TO BUY NEW CRAFT TO SERVE THAT ADDITIONAL TRAFFIC AND TO REPLACE THEIR PRESENT PLANES LAST SUMMER SUNDSTRAND TOOK A 34 MILLION PRETAX CHARGE TO PARE NEARLY 1000 AEROSPACE JOBS BY THE END OF 1993 PART OF THOSE CUTS WERE A RESULT OF SUNDSTRAND'S 128 MILLION PURCHASE IN MAY 1992 OF WESTINGHOUSE ELECTRIC CO'S ELECTRICAL SYSTEMS DIVISION THE CHANGES ARE LIKELY TO CONTINUE AT THE AEROSPACE DIVISION IN JANUARY SUNDSTRAND TENTATIVELY AGREED TO SELL TO ROCKWELL INTERNATIONAL INC ITS 1300EMPLOYEE DATA CONTROL OPERATION WHICH MAKES BLACKBOX FLIGHTDATA RECORDERS AND OTHER COCKPIT DEVICES PROCEEDS FROM THAT 225 MILLION PROPOSED DEAL WERE TO BE USED AMONG OTHER THINGS TO BUY BACK AS MUCH AS FOUR MILLION OR 11 OF THE COMPANY'S SHARES BUT LAST WEEK THAT DEAL COLLAPSED AS THE PARTIES SQUABBLED OVER THE FINAL PRICE SUNDSTRAND NOW SAYS IT'S GOING TO PURSUE ITS OPTIONS AND MAY KEEP THE UNIT OR FIND ANOTHER BUYER SUNDSTRAND LATE LAST WEEK DISCLOSED THAT AS OF MARCH 31 IT HAD BOUGHT BACK ABOUT 875000 SHARES UNDER THE FOURMILLIONSHARE AUTHORIZATION ANNOUNCED IN FEBRUARY EVENTUALLY SUNDSTRAND WANTS ITS INDUSTRIALPARTS DIVISION TO REPRESENT ABOUT HALF OF ITS BUSINESS IT WAS 38 LAST YEAR UP FROM 27 FIVE YEARS AGO TO HELP REACH THE 50 MARK SUNDSTRAND PAID 1453 MILLION IN 1991 TO ACQUIRE MILTON ROY CO A MAKER OF INSTRUMENTATION AND CONTROL EQUIPMENT AND IT IS LOOKING TO FILL IN SOME GAPS IN THE INDUSTRIAL DIVISION'S PRODUCT LINE THROUGH FURTHER ACQUISITIONS MR STONECIPHER SAYS HOWEVER THE INDUSTRIES THE INDUSTRIAL DIVISION SERVES HAVE BEEN HURT BY THE ECONOMIC SLOWDOWN AND FLABBY RECOVERY IN THE US AS WELL AS BY DIFFICULT MARKETS IN JAPAN AND EUROPE FOR THE TIME BEING THE COMPANY'S PLANS TO EXPAND ABROAD HAVE BEEN HAMPERED BY THE WEAK ECONOMIC CONDITIONS EVEN SO PRODUCTS MADE ABROAD OR MADE IN THIS COUNTRY AND SOLD TO OVERSEAS BUYERS ROSE TO 34 OF OVERALL SALES LAST YEAR FROM 25 THREE YEARS AGO ALSO ON TEMPORARY HOLD IS THE COMPANY'S PLAN TO EVENTUALLY FIND A THIRD BUSINESS LINE SOMETHING THAT'S INSULATED FROM THE GENERAL ECONOMY 9304210139 930421 TCI EXECUTIVE SAYS TALKS DON'T SEEK DISMANTLING OF TURNER BROADCASTING BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK JOHN C MALONE CHIEF EXECUTIVE OF TELECOMMUNICATIONS INC SAID CURRENT TALKS REGARDING TURNER BROADCASTING SYSTEM INC ARE LIKELY TO RESULT IN SOMETHING OTHER THAN A BREAKUP OF THE COMPANY OTHER PEOPLE CLOSE TO THE DISCUSSIONS SAY THE PARTIES INVOLVED ARE STILL SEEKING WAYS TO ALLOW TED TURNER TO REALIZE HIS GOAL OF EXPANSION PRIMARILY IN THE MOVIE BUSINESS BUT ONE PERSON FAMILIAR WITH THE SITUATION SAID THE TALKS HAVE TAKEN A 180DEGREE TURN THAT INVOLVES A WHOLE NEW CONCEPT OTHER THAN A BREAKUP THERE IS SPECULATION MR TURNER WILL PARTNER WITH ENGLEWOOD COLOBASED TCI WHICH OWNS 25 OF TURNER BROADCASTING IN INVESTING IN A MOVIE STUDIO SUCH AS MGM/UA COMMUNICATIONS INC A UNIT OF PATHE COMMUNICATIONS CORP OF LOS ANGELES IT ISN'T CLEAR HOW NEW YORKBASED TIME WARNER INC WHICH OWNS 19 OF TURNER BROADCASTING WOULD BE INVOLVED ITS OWNERSHIP OF A MOVIE STUDIO COULD POSE ANTITRUST PROBLEMS MR MALONE WOULDN'T COMMENT SPECIFICALLY ON THAT SCENARIO OR ON THE STATUS OF THE TURNER TALKS BUT HE SAID HE WANTS TO SEE TED BE HAPPY RIGHT NOW TED IS SAYING HE WOULD VERY MUCH LIKE TO PRODUCE AND OWN PROGRAMMING AND I'D LIKE TO SEE HIM ACHIEVE THAT OBJECTIVE HE ALSO SAID HE WOULD BE INTERESTED IN ACQUIRING ALL OF ATLANTABASED TURNER BROADCASTING OR ONE OF ITS ASSETS BUT HE SAID MR TURNER THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE HASN'T INDICATED HE'S WILLING TO SURRENDER CONTROL OF ANY OF ITS PROGRAMMING ASSETS WHICH INCLUDE CABLE NEWS NETWORK THE TBS AND TNT ENTERTAINMENT NETWORKS AND THE MGM AND HANNABARBERA FILM LIBRARIES THE MOTIVATIONS TO CHANGE TURNER'S OWNERSHIP STRUCTURE ARE NOT STRONG MR MALONE SAID IN AN INTERVIEW AFTER ADDRESSING A MEETING OF THE CABLETELEVISION ADVERTISING BUREAU HERE A SPOKESMAN FOR TURNER BROADCASTING DECLINED COMMENT YESTERDAY THE TURNER TALKS BEGAN LAST MONTH WHEN SOURCES SAY MR TURNER TOLD MR MALONE AND TIME WARNER CHIEF EXECUTIVE GERALD M LEVIN HE WANTED FREEDOM FROM THE CABLE OPERATORS WHO LARGELY CONTROL HIS BOARD PEOPLE FAMILIAR WITH THE SITUATION SAY SUBSEQUENT DISCUSSIONS ABOUT SPLITTING OFF PIECES OF TURNER BROADCASTING TO TIME WARNER AND TCI HAVE RUN INTO PROBLEMS PARTLY BECAUSE OF POTENTIALLY HUGE TAX LIABILITIES THERE ARE SOME VERY VERY COMPLICATED THINGS PEOPLE ARE EXPLORING ONE PERSON FAMILIAR WITH THE SITUATION SAID THE REASON FOR THE CONCERN ABOUT TAXES IS THAT TURNER BROADCASTING'S ASSETS ESPECIALLY CNN HAVE GROWN GREATLY IN VALUE AND PRESUMABLY ARE CARRIED ON THE COMPANY'S BOOKS AT MUCH SMALLER VALUES THAN THEY WOULD REAP IF SOLD I'D BE SURPRISED IF THE BASIS OF THEIR ASSETS IS MORE THAN 10 OR 20 OF THE NET VALUE SAYS WILLIAM SANDERS WHO WAS TURNER'S CHIEF FINANCIAL OFFICER IN THE 1970S THAT MEANS ALL THE PARTIES MIGHT HAVE TO PAY HUGE CAPITAL GAINS TAXES IF TURNER SPUN OFF BUSINESSES TO TIME WARNER OR TCI ONE PERSON FAMILIAR WITH THE SITUATION SAID TURNER REPRESENTATIVES ARE LOOKING INTO TAXFREE WAYS TO SPLIT OFF ASSETS BUT THAT TAX LAWS COULD PREVENT IT FROM STRUCTURING SUCH A DEAL IN THE MOST LOGICAL WAY TCI IS SAID TO BE INTERESTED IN TURNER'S NEWS ASSETS WHILE TIME WARNER COULD BE INTERESTED IN TURNER'S ENTERTAINMENT ASSETS AND THERE HAS BEEN SPECULATION THAT THE TWO CABLE OPERATORS WOULD TRY TO MOVE QUICKLY TO PUT TOGETHER SUCH A DEAL IN CASE THE FEDERAL GOVERNMENT ADOPTS RESTRICTIONS THIS FALL ON HOW MUCH PROGRAMMING THEY CAN OWN MR MALONE HOWEVER SAID HE WOULD BE RELUCTANT TO PURSUE A BIG PROGRAMMING ACQUISITION BEFORE THAT UNCERTAINTY IS RESOLVED THE WORST SITUATION YOU CAN BE IN IS HALFPREGNANT WITH A DEAL WHEN THE REGULATIONS COME DOWN HE SAID STILL MR MALONE WHO IS CHAIRMAN OF LIBERTY MEDIA CORP A TCI SPINOFF SAID HE REMAINS INTERESTED IN ACQUIRING ALL OF HOME SHOPPING NETWORK INC ST PETERSBURG FLA LIBERTY BASED IN CHEYENNE WYO CURRENTLY HAS A 23 EQUITY INTEREST IN HOME SHOPPING THE COMPANY LAST WEEK WITHDREW A 640 MILLION BID FOR THE REST OF HOME SHOPPING'S SHARES BUT SUBSEQUENTLY OFFERED 105 MILLION FOR 15 MILLION SHARES WE MAY JUST OFFER TO BUY UP TO A CERTAIN PERCENTAGE OF SHARES MR MALONE SAID HE SAID LIBERTY WITHDREW ITS OFFER FOR ALL OF HOME SHOPPING BECAUSE IT CONCLUDED THE SECURITIES AND EXCHANGE COMMISSION WOULDN'T APPROVE SUCH A DEAL AS LONG AS THERE WERE ALLEGATIONS OF FRAUDULENT SEC FILINGS INVOLVING HOME SHOPPING HOME SHOPPING SAID LAST WEEK THAT THE SEC HAD LAUNCHED AN INFORMAL INVESTIGATION OF THE COMPANY THAT IT BELIEVES IS RELATED TO ALLEGATIONS OF FINANCIAL IMPROPRIETIES BY CURRENT AND FORMER HOME SHOPPING EXECUTIVES 9304210138 930421 FMC SLATES ACQUISITION CHICAGO FMC CORP SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE SOFEC INC A HOUSTON ENGINEERING AND CONSTRUCTION COMPANY FMC DIDN'T DISCLOSE TERMS SOFEC A FORMER VICKERS PLC UNIT THAT WAS PURCHASED BY ITS MANAGERS FROM VICKERS IN 1988 DESIGNS FABRICATES AND INSTALLS MARINE TERMINALS AND MOORING SYSTEMS AND ANTICIPATES SALES IN 1993 OF ABOUT 50 MILLION IT WILL BECOME A UNIT OF FMC'S ENERGY & TRANSPORTATION EQUIPMENT GROUP ALSO BASED IN HOUSTON 9304210137 930421 APPLE UNIT TARGETS MEXICO CUPERTINO CALIF APPLE COMPUTER INC SAID IT OPENED A MARKETING UNIT APPLE COMPUTER MEXICO SA DE CV IN MEXICO TO SELL AND DISTRIBUTE ITS PERSONAL COMPUTERS IN THAT COUNTRY THE COMPANY NAMED ALLAN WHITE MANAGING DIRECTOR OF APPLE LATIN AMERICA TO LEAD THE NEW UNIT THROUGH THE EARLY STAGES OF MARKET DEVELOPMENT THE MEXICAN PC MARKET IS PROJECTED TO REACH NEARLY 1 BILLION IN ANNUAL SALES THIS YEAR 9304210136 930421 INTERNATIONAL SOUTH KOREAN AUTO EXPORTS SEOUL KOREA SOUTH KOREAN AUTO EXPORTS NEARLY DOUBLED TO 137000 VEHICLES IN THE FIRST THREE MONTHS OF THIS YEAR FROM 69128 UNITS IN THE YEARAGO PERIOD THE MINISTRY OF TRADE INDUSTRY AND ENERGY SAID THE LARGE RISE WAS PARTLY BECAUSE OF DISASTROUSLY LOW SHIPMENTS FOR THE PRIORYEAR PERIOD WHEN A LABORMANAGEMENT DISPUTE AT HYUNDAI MOTOR CO THE NATION'S LARGEST AUTO MAKER LED TO A ONEMONTH DISRUPTION OF PRODUCTION 9304210135 930421 FINANCING BUSINESS INFINITY BROADCASTING CORP INFINITY BROADCASTING CORP SEEKING TO FINANCE FUTURE ACQUISITIONS SAID IT FILED PLANS WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER 25 MILLION CLASS A COMMON SHARES TO THE PUBLIC INFINITY AN OWNER AND OPERATOR OF RADIO STATIONS ALSO SAID IT PLANS TO OFFER AS MANY AS 746704 SHARES OF CLASS A COMMON UPON THE EXERCISE OF CERTAIN OUTSTANDING WARRANTS THE COMPANY HAD ABOUT 65 MILLION CLASS A SHARES OUTSTANDING AS OF MARCH 31 INFINITY SAID IN NEW YORK THAT IT EXPECTS TO USE PROCEEDS TO FINANCE ACQUISITIONS OF BROADCASTING PROPERTIES AND HAS HAD DISCUSSIONS WITH ACQUISITION CANDIDATES BUT HASN'T REACHED ANY AGREEMENTS THE COMPANY DIDN'T IDENTIFY THE CANDIDATES INFINITY CLASS A SHARES CLOSED YESTERDAY AT 33 UP 25 CENTS IN NATIONAL OVERTHECOUNTER TRADING 9304210134 930421 EXECUTIVE PAY A SPECIAL REPORT GIMME GIMME GIMME DON'T TELL ME THE '80S ARE OVER I'M READY FOR THE GOOD LIFE BY GIL SCHWARTZ I GOT MY FIRST HEADBAND A LEATHER JOB THAT TIED IN THE BACK WITH A THONG IN 1971 AT LEAST FOUR YEARS AFTER EVERYBODY ELSE I BOUGHT MY FIRST SPORTS CAR IN 1981 WHEN I TURNED 30 AND HAD IT EQUIPPED WITH A THOROUGHLY RETROGRADE ROLL BAR THAT ONLY MY MOTHER LIKED IN 1985 I PURCHASED ONE OF THE LAST PCXT COMPUTERS JUST AS THE BRANDNEW 286ATS CAME ROLLING OFF THE TRUCK TWO YEARS LATER I RIGHTED THAT SITUATION BY NABBING A BRANDNEW AT JUST 10 DAYS BEFORE THEY WERE RELEGATED TO DOORSTOP STATUS BY THE SCREAMING 386S I DID NOT OWN A YELLOW TIE WITH TINY BLUE ESCUTCHEONS UNTIL QUITE LAUGHABLY 1991 AND AS LATE AS NOVEMBER OF 1992 I COULD BE FOUND CAREFULLY SELECTING A PAIR OF POWER SUSPENDERS AT THE UPSCALE END OF A SHOPPING MALL THAT FEATURED FACTORY OUTLETS I GOT A GREAT DEAL ON THEM TOO THE POINT IS THIS I GET AROUND TO ALL GREAT SOCIETAL TRENDS BUT I TAKE MY TIME DOING SO FIND A CURVE I'LL BE BEHIND IT SO QUITE NATURALLY WHILE EVERYONE ELSE WAS BELLYING UP TO THE GROANING OYSTER BAR OF THE CORPULENT 1980S WITH APPETITE TO SPARE I WAS HANGING AROUND WITH MY HEAD STUCK DEEPLY INTO WHAT WAS LEFT OF THE COUNTERCULTURAL SANDBOX MISSING THE ENTIRE SELFISH DECADE TRAGICALLY FOR ME AT ANY RATE I HAVE NOW FINALLY CAUGHT UP WITH THE REST OF YOU AND DISCOVERED GREED NOT AS SOMETHING SMALL AND PETTY BUT AS A THOROUGHLY SATISFYING PERSONAL LIFE CHOICE THAT INFORMS ALL ASPECTS OF EXISTENCE AND IT'S TOO LATE CALL ME A FOOL CALL ME CRAZY BUT I FEEL LIKE I'M STANDING ON THE STREET CORNER WITH A TINY DOLLOP OF DROOL HANGING OFF THE END OF MY CHIN WHEN DOES MY TIME COME PEOPLE ARE TALKING ABOUT SACRIFICE AND GIVING SOMETHING BACK AND WORST OF ALL THE HATEFUL HAVING ENOUGH BAH HERE I'M FINALLY READY TO START ROLLING DOWN THE BIG GREEN HIGHWAY DOUBLEDIGIT INCREASES IN SALARY AND PERKS TUCKED UNDER MY HOOD AND EVERYBODY ELSE IS PULLING OVER TO THE SIDE OF THE ROAD TO STUDY THE SCENERY DON'T TELL ME GREED IS DEAD I HAVEN'T EVEN BEGUN TO EXPLORE IT WHEN I THINK ABOUT HOW I WASTED THE LAST DECADE CARING INSUFFICIENTLY ABOUT THE MATERIAL THINGS THAT ARE THE BASIS OF EVERYTHING THAT'S REALLY IMPORTANT IN LIFE IT MAKES ME WANT TO CRY LET'S LOOK AT THE RECORD THAT EVENING INSTEAD OF TAKING A PRIVATE LIMO TO EAT A FREE DINNER AT AN INDUSTRY FUNCTION IN THE GRAND BALLROOM OF THE MARRIOT MARQUIS IN THE HEART OF TIMES SQUARE I FALL ASLEEP ON THE COUCH WATCHING IN SEARCH OF WITH LEONARD NIMOY MY ASSOCIATE LEMUR ATTENDS THE EVENT AND IS IMMEDIATELY SNAPPED UP BY A GIGANTIC ADVERTISING AGENCY THAT TRIPLES HIS SALARY AND GIVES HIM THE TITLE OF VICE PRESIDENT I DON'T CARE I REALLY DON'T STILL I HAVE THIS GNAWING SENSE THAT PERHAPS I NEED SOMETHING THAT MY MONEY CAN'T BUY SIMPLY BECAUSE I DON'T HAVE ENOUGH OF IT I THINK ABOUT THIS ALL THE OTHER GUYS MY AGE IN COMPANIES LARGE AND SMALL FROM HERE TO PETALUMA HAVE FINAGLED A TON OF NEAT STUFF CARS AND FREE PARKING AND GOLF CLUBS AND NOT THE KIND YOU CARRY AROUND EITHER BUT THE KIND YOU BELONG TO AND FREE TRIPS TAKEN WITH MILES ACCUMULATED AND I WANT MORE AND IT FEELS RIGHT LATE 1992 AND A SUMMER HOUSE IN EAST HAMPTON AND LIPOSUCTION IF I NEED IT AND HAIR AND TEETH IMPLANTS AS NECESSARY AND A COUPLE OF GRAND JUST TO CARRY AROUND FOR PURE IMPULSE BUYS AND A NUMBERED SWISS BANK ACCOUNT WHERE NOBODY COULD TOUCH MY MONEY MY MONEY MINE FIVE MINUTES AGO AND 47 ACRES IN COLORADO AND A LONG LOW SAILBOAT CAPABLE OF RUNNING AGROUND VIRTUALLY ANYWHERE IN THE WORLD AND SIX SUITS THE QUALITY OF WHICH WILL EARN ME RESPECT AND MORE MONEY MORE MONEY FOR ME PERSONALLY SO I WON'T BE COMFORTABLE I WON'T BE WELLOFF I'LL BE RICH RICH I TELL YOU SORRY I'M OK BUT IN A DEEPER SENSE I'M NOT NOT REALLY TEN YEARS LATE I AM CONSUMED WITH ENVY OF EVERYTHING I SEE OR HEAR ABOUT EVEN IF I DON'T NEED OR LIKE IT VERY MUCH AT ALL AND THE PAIN THE PAIN IS UNBEARABLE AS ANY INVESTMENT BANKER WHO MADE LESS THAN 67 MILLION A YEAR FOR SIX YEARS DURING THE 1980S COULD TESTIFY AND THERE'S ONLY ONE SOLUTION SURELY YOU SEE THAT I'M TALKING TO YOU THE GUYS IN CHARGE OF MY COMPENSATION PACKAGE I KNOW YOU'RE READING THIS MAY I SUGGEST YOU CONSIDER THE FOLLOWING HUMANE COURSE OF ACTION RATHER THAN ALLOW THIS IMPOSSIBLE SITUATION TO CONTINUE ONE MOMENT LONGER FIRST SEND ME IMMEDIATELY ON THREE WEEKS' PAID LEAVE CONTINGENT UPON MY TOTAL IMMERSION IN RELAXATION TECHNIQUES PRACTICED BY THE ZEN MONKS WHO RESIDE AND GOLF IN AND ABOUT THE RITZ CARLTON HOTEL IN NAPLES FLA I PROMISE TO COME BACK TANNED RESTED AND READY TO GET BACK TO BASICS SECOND GET ME A COUPLE OF STOCK OPTIONS JUST FOR FUN AND A REALLY PRESTIGIOUS FREQUENTFLIER CARD SO I CAN UPGRADE NEVER HAVING TO FLY COACH AGAIN UNLESS I'M DOING SO TO IMPRESS SENIOR MANAGEMENT THIRD HOW ABOUT HANDING OVER ONE BRANDNEW COMPANY CAR PROBABLY ONE OF THOSE NEW LEXUS ES300S MMMMMM OH AND A PARKING SPACE TO GO ALONG WITH IT WOULD MAKE ME FEEL VERY NICE TOO ISN'T THAT THE POINT OF ALL COMPENSATION TO MAKE THE RECIPIENT FEEL NICE IMAGINE THE EFFECTS ON WHAT REMAINS OF MY SELFESTEEM SO DO IT NOW TODAY NOT BECAUSE IT'S RIGHT NOT BECAUSE YOU MUST BUT BECAUSE IN SO DOING YOU'D BE PUTTING A POOR SUFFERING WRETCH OUT OF HIS MISERY AND BACK INTO THE RANKS OF THE HAPPY HARDHITTING FEW WHO WHEN PROPERLY COMPENSATED COULD QUITE POSSIBLY MAKE A DIFFERENCE COME ON FEED MY GREED THEN I'LL SACRIFICE ALONG WITH THE REST OF YOU I'LL GIVE BACK WHAT I DON'T NEED OR HAVE ALREADY USED UP MR SCHWARTZ IS A WRITER AND BUSINESS EXECUTIVE IN NEW YORK CITY 9304210133 930421 TECHNOLOGY CORNING SELLS DEVICE TO SEAGATE CORNING NY CORNING INC SAID IT REACHED AN AGREEMENT TO SELL A RECORDING DISK SUBSTRATE TO SEAGATE TECHNOLOGY INC THE DEVICE CORNING SAID ENHANCES STORAGE CAPACITY AND RELIABILITY OF COMPUTER HARDDISK DRIVES ALTHOUGH SPECIFIC TERMS WEREN'T DISCLOSED CORNING CALLED IT A MULTIMILLION DOLLAR AGREEMENT SEAGATE SCOTTS VALLEY CALIF SUPPLIES DATASTORAGE PRODUCTS 9304210132 930421 ESPRIT DIRECTOR KATZ RESIGNS SAN FRANCISCO ESPRIT DE CORP SAID A DIRECTOR WHO HAD FILED SUIT AGAINST THE COMPANY RESIGNED AFTER REACHING AN AGREEMENT ENDING ALL PENDING LITIGATION TERMS WEREN'T DISCLOSED BRUCE KATZ HAD FILED SUIT AGAINST THE CLOSELY HELD APPAREL COMPANY ALLEGING FINANCIAL MANIPULATION AND MISMANAGEMENT YESTERDAY ESPRIT SAID MR KATZ RESIGNED AND SOLD HIS 25 STAKE IN THE COMPANY TO SUSIE TOMPKINS THE COMPANY'S COFOUNDER MS TOMKINS NOW HOLDS 67 OF THE COMPANY 9304210131 930421 SEARS POSTS RECORD FIRSTQUARTER PROFIT BRENNAN STILL UNDER FIRE FROM ACTIVISTS BY GREGORY A PATTERSON AND SUSAN PULLIAM STAFF REPORTERS OF THE WALL STREET JOURNAL SEARS ROEBUCK & CO POSTED RECORD FIRSTQUARTER NET INCOME ON THE STRENGTH OF IMPROVED PERFORMANCES IN NEARLY ALL ITS BUSINESS SEGMENTS NET INCOME ROSE TO 435 MILLION OR 113 A SHARE FROM 274 MILLION OR 75 CENTS A SHARE BEFORE AN ACCOUNTING CHARGE IN THE YEARAGO PERIOD OF 187 BILLION OR 529 A SHARE REVENUE FELL 49 TO 1130 BILLION FROM 1189 BILLION DESPITE THE RESULTS WHICH TOPPED EXPECTATIONS SHAREHOLDER ACTIVISTS ARE ENLISTING SUPPORT FOR A PROPOSAL THAT WOULD FORCE EDWARD A BRENNAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE CHICAGOBASED COMPANY TO GIVE UP ONE OF HIS TITLES THE UNITED SHAREHOLDERS ASSOCIATION AND THE NEW YORK CITY EMPLOYEES RETIREMENT SYSTEM ARE SET TO ANNOUNCE TOMORROW THAT THEY WILL MAIL LETTERS TO SEARS'S 1000 LARGEST SHAREHOLDERS URGING THEM TO VOTE FOR THE PROPOSAL THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM THE NATION'S LARGEST PUBLIC PENSION FUND HAS INDICATED IT PLANS TO SUPPORT THE MOVE OBVIOUSLY SEARS IS DOING BETTER SAID ELIZABETH HOLTZMAN NEW YORK CITY'S COMPTROLLER WHO IS A TRUSTEE OF THE NEW YORK CITY PENSION FUND BUT OUR EFFORTS FOCUS ON LARGER ISSUES THAN JUST THE FIRSTQUARTER PERFORMANCE SHE SAID SEARS'S PERFORMANCE IN THE FIRST QUARTER EXCEEDED ANALYSTS' EXPECTATIONS OF ABOUT 90 CENTS A SHARE AND EVEN BESTED THOSE OF SEARS'S TOP EXECUTIVES THE EARNINGS WERE CONSIDERABLY BETTER THAN WE PLANNED AND WE PLANNED AGGRESIVELY MR BRENNAN SAID THE PREVIOUS FIRSTQUARTER RECORD WAS IN 1987 WHEN EARNINGS WERE 285 MILLION BEFORE AN ACCOUNTING CHANGE I WAS VERY IMPRESSED WITH THE COMPOSITION OF THEIR EARNINGS SAID JANET MANGANO AN ANALYST AT BURNHAM SECURITIES INC SHE SAID SHE EXPECTS CONTINUING IMPROVEMENT IN PROFITABILITY FOR SEARS THROUGHOUT 1993 PERHAPS MOST SURPRISING WAS THE PERFORMANCE OF THE ALLSTATE INSURANCE SUBSIDIARY WHICH CONTRIBUTED RECORD NET OF 320 MILLION UP 25 FROM THE YEAREARLIER 256 MILLION BEFORE ACCOUNTING CHANGES RESULTS WERE PARTICULARLY IMPRESSIVE BECAUSE DAMAGE FROM THE WINTER STORM THAT BATTERED THE EAST COAST BOOSTED ALLSTATE'S CATASTROPHE LOSSES DURING THE QUARTER TO 225 MILLION FROM 122 MILLION A YEAR EARLIER ALLSTATE MORE THAN COMPENSATED FOR THOSE LOSSES BY SQUEEZING OPERATING COSTS AND FROM A STRONG INCREASE IN INCOME FROM CAPITAL GAINS IN ITS LIFE INSURANCE BUSINESS THE COMPANY'S MERCHANDISE DIVISION WHICH INCLUDES ITS STORES AND SEARS CHARGECARD OPERATIONS POSTED EARNINGS OF 636 MILLION COMPARED WITH A YEAREARLIER LOSS OF 238 MILLION SEARS IS IN THE MIDST OF A VAST RESTRUCTURING OF ITS MERCHANDISE UNIT INCLUDING THE CLOSING OF ITS CATALOG BUSINESS AND 113 OF ITS STORES AND AN ADDED FOCUS ON APPAREL AND OTHER NONAPPLIANCE OR HARDWARE PRODUCTS IN ONE OF THE FIRST SIGNALS THAT THE STRATEGY MAY BE PAYING OFF SEARS SAID DISCONTINUED OPERATIONS SHOWED A LOSS OF 643 MILLION IN THE FIRST QUARTER SEARS'S STORE OPERATIONS HAD A LOSS OF 496 MILLION MUCH NARROWER THAN THE YEAREARLIER 100 MILLION LOSS WHILE ITS CREDIT OPERATIONS RECORDED A GAIN OF 1198 MILLION TYPICALLY THE FIRST QUARTER IS A POOR ONE FOR RETAILERS REFLECTING THE POSTHOLIDAY LULL AND CLEARANCE SALES THAT'S ESPECIALLY TRUE FOR SEARS WHOSE FIRST QUARTER INCLUDES JANUARY MOST OTHER RETAILERS DON'T BEGIN THEIR FIRST QUARTERS UNTIL FEBRUARY SEARS SAID SALES IN THE STORES IT PLANS TO KEEP OPEN ROSE BY ONLY 23 BUT THE MERCHANDISE DIVISION'S SELLING AND ADMINISTRATIVE EXPENSES FELL TO 284 OF SALES FROM 304 A YEAR EARLIER ITS CHARGECARD OPERATION BENEFITED FROM SHOPPERS' INCREASED USE OF CREDIT TO MAKE PURCHASES IN THE QUARTER THE DEAN WITTER UNIT WHICH SEARS IS DIVESTING REPORTED RECORD NET OPERATING EARNINGS OF 1364 MILLION UP 24 FROM 110 MILLION IN THE 1992 FIRST QUARTER SEARS SOLD 20 OF ITS DEAN WITTER HOLDINGS IN FEBRUARY AND HAS LAID PLANS TO SPIN OFF THE REMAINING PORTION OF THE BROKERAGE FIRM LATER THIS YEAR BUT SEARS'S TRIUMPHS WEREN'T UNIVERSAL ITS COLDWELL BANKER REAL ESTATE UNIT HAD A NET LOSS OF 77 MILLION IN THE QUARTER COMPARED WITH A YEAREARLIER PROFIT OF 38 MILLION ON OTHER MATTERS MR BRENNAN SAID THE COMPANY'S PLANNED SALE OF 20 OF ITS ALLSTATE HOLDINGS IS PROCEEDING ON SCHEDULE SEARS PLANS A MIDMAY ROAD SHOW FOR THE OFFERING THAT IT EXPECTS TO COMPLETE IN JUNE MR BRENNAN ADDED THAT NEGOTIATIONS FOR THE SALE OF THE COLDWELL BANKER UNIT ALSO IS MOVING ALONG VERY NICELY BUT DECLINED TO BE MORE SPECIFIC SEARS ROSE 125 CENTS TO 53125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9304210129 930421 WHO'S NEWS LEHMAN APPOINTS GROTEVANT NEW YORK MARK GROTEVANT A SENIOR VICE PRESIDENT AT LEHMAN BROTHERS WAS NAMED DIRECTOR OF THE FIRM'S HIGHYIELD RESEARCH DEPARTMENT MR GROTEVANT 37 YEARS OLD SUCCEEDS MARIELLE CLEMENSON WHO SAID SHE RESIGNED BECAUSE OF A DIFFERENCE IN MANAGEMENT STYLES BETWEEN HER AND OTHER EXECUTIVES AT LEHMAN BROTHERS A UNIT OF AMERICAN EXPRESS CO LEHMAN BROTHERS YESTERDAY ALSO NAMED GLENN REYNOLDS 35 DIRECTOR OF INVESTMENTGRADE RESEARCH A NEW POSITION AT THE FIRM MR GROTEVANT HAD BEEN A JUNKBOND ANALYST AT LEHMAN WHILE MR REYNOLDS WAS MANAGER OF LEHMAN'S INDUSTRIAL CREDIT RESEARCH GROUP 9304210128 930421 SOFTWARE PUBLISHING FACES SUIT SANTA CLARA CALIF SOFTWARE PUBLISHING CORP SAID A SUIT SEEKING CLASSACTION STATUS HAS BEEN FILED AGAINST THE COMPANY AND TWO OF ITS OFFICERS THE CASE FILED IN THE US DISTRICT COURT FOR NORTHERN CALIFORNIA DOESN'T SPECIFY THE AMOUNT OF DAMAGES SOUGHT A COMPANY SPOKESMAN REFUSED TO GIVE ANY OTHER DETAILS ABOUT THE CASE OR TO NAME THE ATTORNEYS REPRESENTING THE PLANTIFFS THE COMPANY WHICH MAKES SOFTWARE FOR PERSONAL COMPUTERS SAID IT INTENDS TO VIGOROUSLY FIGHT THE SUIT 9304210127 930421 LASMO FILES TO LIST ADRS LONDON LASMO PLC AN INTERNATIONAL ENERGY EXPLORATION AND PRODUCTION COMPANY SAID IT FILED PLANS WITH THE SECURITIES AND EXCHANGE COMMISSION TO LIST ITS AMERICAN DEPOSITARY RECEIPTS ON THE NEW YORK STOCK EXCHANGE LASMO ALSO SAID IT PLANS TO ISSUE AS MUCH AS 150 MILLION IN CUMULATIVE DOLLAR PREFERENCE SHARES SUBJECT TO SHAREHOLDER APPROVAL AND AS MUCH AS 250 MILLION IN LONGTERM FIXEDRATE DEBT SECURITIES OR YANKEE BONDS THE COMPANY SAID THE PROPOSED OFFERINGS ARE EXPECTED TO HELP IT OBTAIN LONGTERM FIXEDRATE FINANCING IN US DOLLARS AT ATTRACTIVE RATES 9304210126 930421 BUSINESS WINS CASE OVER IRS IN TOP COURT DECISION ON DEPRECIATION OF INTANGIBLE ASSETS SAVES FIRMS BILLIONS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT PROTECTED BUSINESS FROM WHAT COULD HAVE BEEN A MULTIBILLIONDOLLAR TAX HIT IN A CASE INVOLVING THE TREATMENT OF INTANGIBLE ASSETS SUCH AS NEWSPAPERSUBSCRIBER LISTS THE 54 HIGH COURT RULING WILL BENEFIT COMPANIES IN A WIDE RANGE OF INDUSTRIES INCLUDING PUBLISHING FINANCIAL SERVICES AND INSURANCE THE COURT SAID THAT IF COMPANIES CAN DETERMINE THE DOLLAR VALUE AND USEFUL LIFE OF LISTS OF READERS CLIENTS OR POLICYHOLDERS THEY MAY SEEK FEDERAL TAX DEDUCTIONS BASED ON THE DEPRECIATION OF THOSE INTANGIBLE ASSETS THE MAJORITY REJECTED THE LONGESTABLISHED POSITION OF THE INTERNAL REVENUE SERVICE THAT SUCH CUSTOMER INFORMATION GENERALLY CAN'T BE THE BASIS FOR DEPRECIATION DEDUCTIONS IT'S DIFFICULT TO PROJECT THE EXTENT OF THE GOVERNMENT'S REVENUE LOSSES BUT THEY COULD RUN INTO BILLIONS OF DOLLARS A YEAR THE ISSUE OF INTANGIBLEASSET DEPRECIATION FREQUENTLY ARISES IN THE CONTEXT OF TAKEOVERS YESTERDAY'S DECISION PROBABLY WILL MAKE IT EASIER FOR CONGRESS TO PASS PROPOSED PROBUSINESS LEGISLATION THAT WOULD SET SPECIFIC DEPRECIATION RULES FOR INTANGIBLE ASSETS ACQUIRED IN TAKEOVERS THAT'S BECAUSE AFTER TAKING ACCOUNT OF THE LIKELY REDUCTIONS IN PROJECTED GOVERNMENT REVENUES RESULTING FROM THE COURT RULING THE BILL ITSELF WOULD BE LESS LIKELY TO ADD FURTHER TO THE FEDERAL DEFICIT LAWMAKERS AND PRESIDENT CLINTON MIGHT HAVE WANTED TO AVOID LEGISLATION THAT WOULD ENLARGE THE DEFICIT AMID THE BROADER CONTROVERSY OVER TAXES AND SPENDING THE FEDERAL TAX CODE PERMITS DEDUCTIONS BASED ON THE AMOUNTS THAT CERTAIN ASSETS DECLINE IN VALUE EACH YEAR SOME INTANGIBLE ASSETS THAT DIMINISH BY A MEASURABLE AMOUNT MAY BE DEPRECIATED FOR TAX PURPOSES IN CONTRAST THE CUSTOMER GOODWILL A COMPANY ENJOYS ISN'T DEPRECIABLE BECAUSE IT HAS AN INDEFINITE LIFE IN ITS RULING YESTERDAY THE HIGH COURT REJECTED THE IRS'S CATEGORICAL ARGUMENT THAT CUSTOMER LISTS ARE A FORM OF GOODWILL AND THEREFORE ARE NEVER DEPRECIABLE IN HIS OPINION FOR THE MAJORITY JUSTICE HARRY BLACKMUN SAID COMPANIES THAT CAN PROVIDE EXPERT ESTIMATES OF THE USEFUL LIFE OF CUSTOMER INFORMATION AND RELATIONSHIPS MAY DEPRECIATE THE VALUE OF THE ASSETS OVER THE COURSE OF THAT PERIOD THE RULING BOOSTED STOCK PRICES OF SEVERAL COMPANIES WITH SIZABLE INTANGIBLE ASSETS THAT WERE MENTIONED IN A MONDAY HEARD ON THE STREET COLUMN IN THIS NEWSPAPER THAT FOCUSED ON THE SUPREME COURT CASE IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY FIRST USA INC'S STOCK JUMPED 150 TO 35875 UNITED ASSET MANAGEMENT CORP ROSE 625 CENTS TO 3225 AND CHARLES SCHWAB CORP EDGED UP 125 CENTS TO 32125 THE HIGH COURT RULING AROSE FROM THE ACQUISITION BY THE NEWARK MORNING LEDGER CO OF A MICHIGAN NEWSPAPERPUBLISHING FIRM MORNING LEDGER A UNIT OF THE NEWHOUSE FAMILY'S ADVANCE PUBLICATIONS INC PUBLISHES THE NEWARK STAR LEDGER OF THE 314 MILLION TOTAL VALUE OF THE PURCHASE MORNING LEDGER'S PREDECESSOR COMPANY ALLOCATED 67 MILLION TO THE PAIDSUBSCRIBER LISTS OF THE MICHIGAN PUBLISHER BEGINNING IN 1977 THE PREDECESSOR FIRM CLAIMED DEPRECIATION DEDUCTIONS BASED ON THAT FIGURE BUT THE IRS DENIED THE CLAIMS ASSERTING THE PAID SUBSCRIBERS WERE PART OF THE GOODWILL OF THE ACQUIRED PUBLISHER AND WEREN'T DEPRECIABLE MORNING LEDGER LATER FILED A LAWSUIT SEEKING REFUNDS FOR MILLIONS OF DOLLARS IN TAXES PAID FROM 1977 THROUGH 1980 A FEDERAL JUDGE RULED THAT THE PAIDSUBSCRIBER LIST WAS DEPRECIABLE BECAUSE THE CUSTOMERS COULD BE IDENTIFIED AND THEIR VALUE MEASURED WITH A FAIR DEGREE OF ACCURACY THE FEDERAL APPEALS COURT IN PHILADELPHIA REVERSED THAT DECISION STRESSING THAT AS AN ASSET CONTRIBUTING TO CONTINUED PATRONAGE THE SUBSCRIBER LIST WAS SIMILAR TO NONDEPRECIABLE GOODWILL THE COURT EMPHASIZED THAT THE SUBSCRIBERS COULD STOP BUYING PAPERS AT ANY TIME MAKING THEIR VALUE UNCERTAIN OTHER FEDERAL APPEALS COURTS HOWEVER HAD RULED THAT SUCH CUSTOMER LISTS ARE DEPRECIABLE CREATING CONFUSION OVER THE HIGHSTAKES ISSUE THE SUPREME COURT REVERSED THE PHILADELPHIA APPEALS COURT'S DECISION JUSTICE BLACKMUN WROTE THAT MORNING LEDGER HAD DEMONSTRATED THAT PAID SUBSCRIBERS CONSTITUTE AN ASSET WITH AN ASCERTAINABLE VALUE AND A LIMITED USEFUL LIFE AND THEREFORE THE SUBSCRIBER LIST COULD BE DEPRECIATED THE SUBSCRIBERS HAD BEEN CUSTOMERS FOR LENGTHY PERIODS OF TIME AND REPRESENTED A RELIABLE AND MEASURABLE SOURCE OF REVENUE JUSTICE BLACKMUN SAID HE WENT OUT OF HIS WAY TO NOTE THAT IN FUTURE CASES THE IRS MAY BE ABLE TO REFUTE AS A FACTUAL MATTER A TAXPAYER'S CLAIMS ABOUT THE VALUE OR LIFE OF AN INTANGIBLE ASSET BUT HE WROTE THAT CONTRARY TO THE GOVERNMENT'S POSITION IN THE MORNING LEDGER CASE THE SIGNIFICANT QUESTION ISN'T WHETHER AN ASSET FITS INTO THE ABSTRACT CONCEPT OF GOODWILL BUT INSTEAD WHETHER THE ASSET IS CAPABLE OF BEING VALUED AND WHETHER THE VALUE DIMINISHES OVER TIME ILLUSTRATING THE DIFFICULTIES OF PROVING THAT AN ASSET MAY BE DEPRECIABLE JUSTICE BLACKMUN EXPLAINED THAT CUSTOMER RELATIONSHIPS ARISING FROM NEWSSTAND SALES PROBABLY WOULDN'T QUALIFY BECAUSE SUCH PURCHASES ARE TOO SPORADIC AND UNPREDICTABLE LIKEWISE YESTERDAY'S RULING WOULDN'T NECESSARILY BENEFIT A RETAILER WHO MAINTAINS A LIST OF ALL THE PEOPLE WHO HAVE PURCHASED SHOES OR LAWNMOWERS JAMES SHANAHAN A TAX PARTNER WITH THE ACCOUNTING FIRM PRICE WATERHOUSE SAID THAT WHILE THE DECISION WAS A BIG VICTORY FOR BUSINESS IT SHOULDN'T BE INTERPRETED AS AN AUTOMATIC GIVEAWAY BECAUSE I THINK THE IRS WILL CONTINUE TO BE AGGRESSIVE IN CHALLENGING DEPRECIATION CLAIMS THE BURDEN OF PROOF HE ADDED IS ALWAYS ON THE TAXPAYER IT'S A VERY HIGH BURDEN OF PROOF THE PENDING FEDERAL LEGISLATION IN MANY INSTANCES WOULD ELIMINATE THE UNCERTAINTY THAT STILL REMAINS AFTER THE SUPREME COURT'S DECISION THE BILL WOULD ALLOW DEPRECIATION OVER 14 YEARS OF ALL INTANGIBLE ASSETS ACQUIRED IN A BUSINESS TAKEOVER CONGRESS APPROVED THE BILL LAST YEAR BUT IT WAS PART OF TAX LEGISLATION THAT FORMER PRESIDENT BUSH VETOED LAWMAKERS PROBABLY WILL TAKE UP THE INTANGIBLEASSETS BILL IN THE NEXT FEW MONTHS AS A PART OF BROADER EFFORTS TO CHANGE THE TAX CODE FRED GOLDBERG OF SKADDEN ARPS A FORMER IRS COMMISSIONER AND ASSISTANT TREASURY SECRETARY FOR TAX POLICY SAID THE RULING BECAUSE IT STILL REQUIRES TAXPAYERS AND THE IRS TO SETTLE DISPUTES ON A CASEBYCASE BASIS MAKES THE CASE FOR LEGISLATION THAT MUCH MORE COMPELLING JOINING THE MAJORITY YESTERDAY WERE JUSTICES JOHN PAUL STEVENS SANDRA DAY O'CONNOR ANTHONY KENNEDY AND CLARENCE THOMAS JUSTICE DAVID SOUTER WROTE A DISSENTING OPINION WHICH WAS JOINED BY CHIEF JUSTICE WILLIAM REHNQUIST AND JUSTICES BYRON WHITE AND ANTONIN SCALIA THE DISSENTERS ASSERTED THAT MORNING LEDGER'S SUBSCRIBER LISTS WERE UNMISTAKABLY A DIRECT MEASUREMENT OF GOODWILL AND ITS EXPERT TESTIMONY FAILED TO SHOW ANY PARTICULAR LIFESPAN FOR THE GOODWILL IT ACQUIRED NEWARK MORNING LEDGER CO VS US JACKIE CALMES CONTRIBUTED TO THIS ARTICLE 9304210125 930421 PENN TRAFFIC OFFER EXPIRES JOHNSTOWN PA PENN TRAFFIC CO SAID ITS TENDER OFFER TO PURCHASE OUTSTANDING NOTES OF TWO ITS UNITS EXPIRED MONDAY THE FOOD RETAILER SAID 938 MILLION PRINCIPAL AMOUNT OF THE OUTSTANDING 12 3/4 SENIOR NOTES DUE 1997 ISSUED BY BIG BEAR STORES CO WERE TENDERED AND 778 MILLION PRINCIPAL AMOUNT OF THE 13 3/4 SENIOR SUBORDINATED NOTES DUE 1998 ISSUED BY P&C FOOD MARKETS INC WERE TENDERED PENN TRAFFIC OFFERED 105250 PER 1000 PRINCIPAL AMOUNT FOR THE BIG BEAR NOTES AND 108250 PER 1000 PRINCIPAL AMOUNT FOR THE P&C NOTES ACCRUED AND UNPAID INTEREST UP TO THE PAYMENT DATE WAS INCLUDED 9304210124 930421 WHO'S NEWS MACY NAMES ULLMAN A FINANCE SPECIALIST AS ITS CHIEF EXECUTIVE NEW YORK RH MACY & CO NAMED MYRON R ULLMAN III CHAIRMAN AND CHIEF EXECUTIVE OFFICER GIVING THE 47YEAROLD FINANCE SPECIALIST SOLE RESPONSIBILITY FOR THE JOB HE HAD SHARED SINCE LAST YEAR WITH MARK S HANDLER MR HANDLER 60 WILL HAVE THE NEW TITLE OF EXECUTIVE DIRECTOR AND WILL STILL SERVE ON MACY'S BOARD HE WILL ADVISE MR ULLMAN AND DEVELOP MERCHANDISING STRATEGIES IN SUCH AREAS AS PRIVATELABEL PRODUCTS THE CHANGE WHICH HAD BEEN WIDELY EXPECTED IN THE RETAILING INDUSTRY IS EFFECTIVE AUG 1 THE BIG RETAILER SAID THAT BY THE END OF JULY IT PLANS TO HIRE A NEW PRESIDENT AND CHIEF OF MERCHANDISING TO ASSUME DUTIES VACATED BY MR HANDLER MR ULLMAN A RELATIVE NEWCOMER TO MACY'S JOINED THE COMPANY IN 1988 AS EXECUTIVE VICE PRESIDENT AFTER SERVING AS MANAGING DIRECTOR AND CHIEF OPERATING OFFICER OF THE WHARF HOLDINGS LTD A HONG KONG HOLDING COMPANY WITH RETAIL AND HOTEL INTERESTS HE BECAME MACY'S VICE CHAIRMAN IN 1991 A POSITION HE HELD UNTIL ASSUMING THE JOB OF COCHAIRMAN AND COCHIEF EXECUTIVE IN WHICH HE WAS RESPONSIBLE FOR FINANCES COMPUTER OPERATIONS AND HUMAN RESOURCES LAST NOVEMBER THE EXECUTIVES SPEARHEADED A FIVEYEAR BUSINESS PLAN DESIGNED TO CUT COSTS RESTRUCTURE THE COMPANY AND RETURN IT TO LONGTERM PROFITABILITY MR ULLMAN SAID YESTERDAY IN AN INTERVIEW THAT IN SEEKING ITS NEW PRESIDENT MACY'S WILL CONSIDER CANDIDATES FROM INSIDE AND OUTSIDE THE COMPANY HE OBSERVED THAT THERE ARE ONLY A DISCREET NUMBER OF PEOPLE WHO HAVE RUN BILLIONDOLLAR RETAIL DIVISIONS WITHIN THE INDUSTRY 9304210123 930421 PHONE FIRMS POST ADVANCES BEFORE CHARGES BELL ATLANTIC GTE SPRINT SOUTHWESTERN REPORT MIXED 1STPERIOD RESULTS A WALL STREET JOURNAL NEWS ROUNDUP FOUR MAJOR PHONE COMPANIES REPORTED WIDELY MIXED RESULTS FOR THE FIRST QUARTER LARGELY REFLECTING ONETIME CHARGES BOTH THIS YEAR AND LAST SOUTHWESTERN BELL CORP AND SPRINT CORP POSTED LARGE LOSSES FOR THE FIRST QUARTER WHILE BELL ATLANTIC CORP AND GTE CORP REPORTED EARNINGS GAINS BUT EXCLUDING VARIOUS ONETIME ITEMS FOR ADOPTING NEW ACCOUNTING RULES AND DEBT REFINANCING ALL FOUR COMPANIES HAD SOLID INCREASES IN FIRSTQUARTER EARNINGS A REFLECTION OF THE COUNTRY'S IMPROVING ECONOMY AND THEIR OWN COSTCUTTING MEASURES EXCLUDING SPECIAL ITEMS SOUTHWESTERN BELL'S EARNINGS ROSE 156 TO 3025 MILLION OR 101 A SHARE REVENUE ROSE 75 TO 246 BILLION BELL ATLANTIC'S NET ROSE 22 BUT IT HAD SEVERAL ONETIME ITEMS INCLUDING A CHARGE FOR EARLY EXTINGUISHMENT OF DEBT ACCOUNTING CHANGES FOR INCOME TAXES AND A GAIN AND OFFSETTING CHARGE RELATED TO ITS INVESTMENT IN TELECOM CORP OF NEW ZEALAND IN ADDITION A TAX SETTLEMENT PRODUCED A SMALL GAIN IN THE 1992 QUARTER WITHOUT ALL OF THE ONETIME ITEMS NET INCOME FOR THE PHILADELPHIABASED BABY BELL ROSE NEARLY 13 OUR EARNINGS REFLECT CONTINUED ROBUST SUBSCRIBER AND REVENUE GROWTH IN OUR WIRELESS BUSINESS IMPROVEMENT IN TELEPHONE COMPANY REVENUES ONGOING COST CONTAINMENT AND INTEREST SAVINGS BELL ATLANTIC CHAIRMAN RAYMOND SMITH SAID WE ARE POSITIONED FOR A YEAR OF SOLID EARNINGS IN THE UPPER END OF OUR 6 TO 9 GROWTH TARGET THE COMPANY REPORTED THAT IT HAD 753000 CELLULAR TELEPHONE SUBSCRIBERS 40 MORE THAN AT THE END OF THE 1992 QUARTER BELL ATLANTIC MOBILE'S REVENUE JUMPED 29 TO 1627 MILLION ALTHOUGH THE AVERAGE MONTHLY BILL OF A CELLULAR SUBSCRIBER DROPPED 74 TO 75 THE DROP IN AVERAGE MONTHLY BILLS CONTINUES AN INDUSTRY TREND THAT SHOWS NO SIGN OF ABATING AS CELLULAR COMPANIES SIGN UP MORE AND MORE CASUAL USERS WHO WANT CAR PHONES MAINLY FOR SAFETY REASONS AND INDIVIDUAL CUSTOMERS WHO TEND TO USE CELLULAR AND PORTABLE PHONES LESS THAN BUSINESS SUBSCRIBERS GTE'S EARNINGS GAIN COMPARES WITH A YEAREARLIER LOSS THAT WAS POSTED AFTER A CHARGE FOR ACCOUNTING CHANGES FOR POSTRETIREMENT BENEFITS AND INCOME TAXES EXCLUDING THE ACCOUNTING CHANGES THE 1992 QUARTER'S EARNINGS WERE 43 CENTS A SHARE GTE WAS HELPED BY STRONG LOCAL TELEPHONE OPERATING RESULTS AND ROBUST CELLULAR SERVICE REVENUE THE STAMFORD CONN COMPANY'S OPERATING PROFIT ROSE 94 REVENUE WAS FLAT AT 483 BILLION GTE'S TELEPHONE OPERATIONS DRIVEN BY HIGHER VOLUMES AND LOWER DOMESTIC OPERATING COSTS REPORTED A 18 GROWTH IN REVENUE TO 392 BILLION OPERATING PROFIT ROSE 7 TO 104 BILLION TELECOMMUNICATION PRODUCTS AND SERVICES DRIVEN BY MOBILECELLULAR INCREASES MORE THAN DOUBLED OPERATING PROFIT TO 60 MILLION HOWEVER REVENUE FELL 6 TO 911 MILLION PARTLY REFLECTING LOWER GOVERNMENT SALES GTE SAID CELLULAR CUSTOMERS GREW 34 FROM THE 1992 QUARTER TO ALMOST 12 MILLION CELLULAR SERVICE REVENUE EXCLUDING EQUIPMENT SALES ROSE 24 TO 238 MILLION SPRINT'S LOSS REFLECTED CHARGES FOR RETIREE HEALTH BENEFITS AND FOR COSTS OF ITS MERGER WITH CENTEL CORP MORE SIGNIFICANT HOWEVER WAS SPRINT'S CONTINUED ASCENT FROM THE ASH HEAP OF ITS COSTLY LONGDISTANCE MARKETING WAR WITH AMERICAN TELEPHONE & TELEGRAPH CO AND MCI COMMUNICATIONS CORP SPRINT'S LONGDISTANCE UNIT WHICH ANALYSTS HAD BEGUN TO WRITE OFF THIS TIME LAST YEAR POSTED AN 81 INCREASE IN OPERATING PROFIT ON ROBUST REVENUE AND VOLUME GROWTH REVENUE GREW 9 TO 272 BILLION FROM 25 BILLION SPRINT BASED IN WESTWOOD KAN CONSOLIDATED ITS RESULTS WITH CENTEL'S FOLLOWING THEIR MERGER LAST MONTH LONGDISTANCE PHONE SERVICES POSTED OPERATING PROFIT OF 1207 MILLION VS 668 MILLION A YEAR AGO AND A 14 IMPROVEMENT FROM THE 106 MILLION SPRINT SHOWED IN THE 1992 FOURTH QUARTER REVENUE FOR THE SEGMENT ROSE 10 TO 149 BILLION FROM 136 BILLION IN LAST YEAR'S FIRST QUARTER BUT WAS FLAT FROM THE FOURTH QUARTER OF 1992 LONGDISTANCE TRAFFIC VOLUME MEASURED IN MINUTES OF USE GREW BY 93 FROM A YEAR AGO AND 47 FROM THE FOURTH QUARTER SPRINT'S LOCAL PHONE OPERATIONS SHOWED A 1 DECLINE IN OPERATING INCOME TO 2191 MILLION REVENUE ROSE 5 TO 9915 MILLION ON STRONG 43 GROWTH IN CUSTOMER PHONE LINES SPRINT ALSO GOT A BOOST FROM CELLULAR PHONE SERVICES FORMERLY CENTEL'S OPERATIONS 9304210122 930421 INTERNATIONAL FORMER PRIME MINISTER OF ITALY ACCUSED OF MEETING IN 1980S WITH MAFIA LEADER BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL ROME NEW REVELATIONS BY A MAFIA TURNCOAT ACCUSE FORMER SEVENTIME ITALIAN PRIME MINISTER GIULIO ANDREOTTI OF MEETING WITH MAFIA GODFATHER SALVATORE RIINA IN THE LATE 1980S THE ACCUSATIONS ARE THE LATEST IN THE DRAMATIC CASE AGAINST 74YEAROLD MR ANDREOTTI WHO IS UNDER INVESTIGATION BY MAGISTRATES IN PALERMO SICILY FOR ALLEGED MAFIA ASSOCIATION THE CASE WHICH HAS RIVETED THE ATTENTION OF ITALY FOR THE PAST THREE WEEKS HAS BECOME A DE FACTO INVESTIGATION OF THE OLD POLITICAL ORDER THAT GOVERNED THE NATION FOR THE LAST HALF CENTURY THE ACCUSATIONS ALSO COME ON THE HEELS OF A WEEKEND POLITICAL REFERENDUM IN WHICH AN OVERWHELMING MAJORITY OF ITALIANS SAID THAT THE ELECTORAL SYSTEM NEEDS TO BE SCRAPPED IN TESTIMONY PRESENTED BY MAGISTRATES TO A PARLIAMENTARY COMMISSION EVALUATING THE CASE MR RIINA'S FORMER DRIVER BALDASSARE DI MAGGIO SAID MR ANDREOTTI MET WITH AND KISSED THE MOB BOSS AROUND 1988 IN THE PALERMO HOME OF KNOWN MAFIA MEMBER IGNAZIO SALVO MR RIINA WHO WAS ARRESTED IN JANUARY WITH THE HELP OF MR DI MAGGIO IS CONSIDERED BY SICILIAN INVESTIGATORS TO BE THE HEAD OF COSA NOSTRA AND SUSPECTED OF COMMITTING OR ORDERING MORE THAN 100 MURDERS IN 1987 MR RIINA WAS CONVICTED ON CHARGES OF MAFIA CONSPIRACY DRUG TRAFFICKING AND ORDERING MURDERS AT THE TIME OF THE ALLEGED MEETING MR ANDREOTTI WAS FOREIGN MINISTER ACCORDING TO THE NEW TESTIMONY MR DI MAGGIO SAID HE WASN'T PRESENT DURING A THREEHOUR MEETING THAT TOOK PLACE BETWEEN MR ANDREOTTI MR RIINA AND MR ANDREOTTI'S SICILIAN VICEROY SALVO LIMA AND DIDN'T KNOW WHAT WAS DISCUSSED BUT HE SAID IT IS MY IMPRESSION THAT THE THREE ALREADY KNEW EACH OTHER I BASE MY IMPRESSION ON THE WAY THEY BEHAVED WHEN THEY MET BOTH MR LIMA AND MR SALVO HAVE SINCE BEEN MURDERED ANOTHER WITNESS WAS PRESENT AT THE MEETING ACCORDING TO THE INFORMER BUT JUDGES HAVE WITHHELD HIS NAME PENDING ANOTHER INVESTIGATION MR RIINA HIMSELF TESTIFIED IN FEBRUARY THAT I DON'T KNOW WHAT COSA NOSTRA IS AND I DON'T KNOW ANY POLITICIAN IN A STATEMENT MR ANDREOTTI DENOUNCED THE ACCUSATIONS AS GRAVE SLANDER AND CALLED THE EMERGING TESTIMONY A DESIGN TO DESTABILIZE THE COUNTRY MR ANDREOTTI HAS MAINTAINED THAT THE MAFIA IS SEEKING REVENGE AGAINST HIM FOR THE TOUGH ANTIMAFIA MEASURES HE ADOPTED AS PRIME MINISTER MR ANDREOTTI IS SCHEDULED TO FORMALLY TESTIFY BEFORE THE PARLIAMENTARY COMMISSION TODAY TO DEFEND HIMSELF THE 23MEMBER COMMISSION IS EXPECTED TO DECIDE WHETHER TO RECOMMEND LIFTING MR ANDREOTTI'S PARLIAMENTARY IMMUNITY BASED ON THE TESTIMONY THE SENATE WILL THEN HAVE TO VOTE IN FAVOR OF LIFTING IMMUNITY BEFORE THE CASE CAN COME TO TRIAL SHOULD THE PARLIAMENTARY COMMITTEE OR SENATE DECIDE AGAINST WAIVING IMMUNITY THE CASE WILL BE DROPPED UNDOUBTEDLY THE PICTURE IS WORSENING GIOVANNI PELLEGRINO HEAD OF THE PARLIAMENTARY COMMISSION SAID I DON'T SEE CONTRADICTORY ASPECTS IN THE NEW DOCUMENTATION EIGHT FORMER MAFIA MEMBERS HAVE ACCUSED MR ANDREOTTI OF CRIMES RANGING FROM ARRANGING THE RELEASE OF MOB MEMBERS FROM PRISON TO ORDERING THE MURDERS OF AN ANTIMAFIA POLICE CHIEF AND A RIGHTWING JOURNALIST IN THE 1970S MR ANDREOTTI HAS VIGOROUSLY DENIED ALL THE CHARGES THE CASE REOPENED THE LONG RUNNING MYSTERY SURROUNDING THE SLAYING OF FORMER PRIME MINISTER ALDO MORO IN 1978 MAFIA INFORMERS ALLEGE MR ANDREOTTI ORDERED THE MURDER OF ANTIMAFIA POLICE CHIEF CARLO DALLA CHIESA AND RIGHTWING JOURNALIST MIMO PECORELLI BECAUSE THEY KNEW TOO MUCH ABOUT THE MORO MURDER 9304210121 930421 COMPUTERS APPLE NOVELL JOIN TO DEVELOP NEW SOFTWARE BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL APPLE COMPUTER INC AND NOVELL INC ARE WORKING TOGETHER TO DEVELOP SOFTWARE THAT WILL GIVE PERSONAL COMPUTERS MADE WITH INTEL CORP MICROPROCESSORS THE LOOK AND FEEL OF APPLE'S MACINTOSH COMPUTERS SOURCES FAMILIAR WITH THE PLANS SAID THE PROJECT REPRESENTS APPLE'S FIRST MAJOR ATTEMPT TO CREATE A VERSION OF ITS PROPRIETARY MACINTOSH OPERATING SYSTEM SOFTWARE FOR MACHINES OTHER THAN ITS OWN AND IS A DIRECT CHALLENGE TO MICROSOFT CORP WHICH HAS A VIRTUAL MONOPOLY ON OPERATINGSYSTEM SOFTWARE FOR PERSONAL COMPUTERS BASED ON INTEL'S CHIPS THE IDEA IS TO LINK THE MACINTOSH OPERATING SYSTEM WITH DR DOS NOVELL'S OWN VERSION OF MICROSOFT'S DOS OPERATING SYSTEM NOVELL HASN'T HAD MUCH SUCCESS SELLING DR DOS AS AN ALTERNATIVE TO MICROSOFT'S DOS SUCH APPLENOVELL SOFTWARE WOULD SERVE TO HELP APPLE INCREMENTALLY INCREASE THE MARKET FOR ITS PRODUCTS AND SERVE TO PRY PEOPLE AWAY FROM MICROSOFT SAID WILLIAM BLUESTEIN AN ANALYST WITH FORRESTER RESEARCH A MARKET RESEARCH FIRM BUT THE VENTURE IS IN ITS EARLY STAGES AND THE POTENTIAL ARRANGEMENT AMONG APPLE NOVELL AND OTHER PERSONALCOMPUTER MAKERS IS UNCLEAR JOHN SCULLEY APPLE'S CHIEF EXECUTIVE OFFICER BADLY WANTS TO EXPAND MACINTOSH'S MARKET SHARE WHICH IS CURRENTLY ABOUT 12 TO 14 OF THE PERSONALCOMPUTER MARKET BUT HE HAS TO WORRY ABOUT THE EXTENT TO WHICH OTHER COMPUTER MAKERS ARE ALLOWED TO CLONE THE MACINTOSH IT ISN'T KNOWN WHETHER ONLY APPLE AND NOVELL WOULD BE ABLE TO OFFER THE MACINTOSH SOFTWARE WITH DOSBASED MACHINES OR WHETHER OTHER MAKERS WOULD BE LICENSED TO SELL MACHINES BUNDLED WITH THE SOFTWARE IT ALSO ISN'T KNOWN WHETHER INTELBASED COMPUTERS EQUIPPED WITH SUCH SOFTWARE WOULD BE ABLE TO RUN MACINTOSH APPLICATIONS AS WELL AS MACINTOSH MACHINES PEOPLE FAMILIAR WITH THE PLANS SAID PCS RUNNING THE NEW SOFTWARE AREN'T EXPECTED TO EXACTLY REPLICATE APPLE'S OWN SYSTEM INSTEAD THE SOFTWARE IS EXPECTED TO BE A HYBRID OF APPLE'S SOFTWARE AND NOVELL'S VERSION OF DOS AN OPERATING SYSTEM THAT PERFORMS THE BASIC FUNCTIONS OF COMPUTERS CONSEQUENTLY ENGINEERS WORKING ON THE PROJECT FACE THE DAUNTING TASK OF MELDING THE TWO SOFTWARE DESIGNS PERHAPS AT THE EXPENSE OF PERFORMANCE THE SOFTWARE MIGHT APPEAL ONLY TO A LIMITED MARKET OF CUSTOMERS THAT NEED TO RUN SOFTWARE BASED ON DIFFERENT OPERATING SYSTEMS ON THE SAME MACHINE SOURCES SAID APPLE AND NOVELL ARE ALSO CONSIDERING WAYS FOR THE NEW SOFTWARE TO RUN APPLICATIONS DESIGNED FOR MICROSOFT'S BIGSELLING WINDOWS SOFTWARE ON THE OTHER HAND IF A MAKER OF INTELBASED MACHINES SUCH AS COMPAQ COULD START OFFERING MACLIKE MACHINES THE PACT COULD HAVE REAL SIGNIFICANCE AS FOR NOVELL BY OFFERING A MACINTOSH INTERFACE ON A DOS BASE IT WOULD BE ABLE TO SELL CUSTOMERS ALL THE SOFTWARE NEEDED TO OPERATE A COMPUTER NETWORK INCLUDING THE SOFTWARE THAT CONTROLS THE NETWORK WHICH IS NOVELL'S SPECIALITY AND THE SOFTWARE THAT CONTROLS THE NETWORK'S DESKTOP COMPUTERS BUT NOVELL MUST COMPETE AGAINST MICROSOFT'S LOCK ON THE MARKET FOR DOSTHE VAST MAJORITY OF PCS CURRENTLY SHIPPED ARE EQUIPPED WITH MICROSOFT'S VERSION OF DOS NOVELL HAS ONLY A FRACTION OF THAT MARKET CUSTOMERS THAT HAVE ALREADY ESTABLISHED A CLOSE RELATIONSHIP WITH MICROSOFT AND TRUST ITS SOFTWARE WILL BE HARDPRESSED TO FIND REASONS FOR SWITCHING TO NOVELL'S DOS VERSION MICROSOFT DOESN'T SEE ANY NEW SOFTWARE FROM APPLE AND NOVELL AS A THREAT SUCH SOFTWARE IS LIKE PUTTING LIPSTICK ON A CHICKEN BRAD CHASE A MICROSOFT GENERAL MANAGER SAID BUT IT'S STILL A CHICKEN 9304210120 930421 INSIDE TRACK DURACELL'S INSIDERS SELL SOME SHARES BY WARREN GETLER AND ALEXANDRA PEERS STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK DO INSIDERS AT DURACELL INTERNATIONAL CO THINK THE GIANT BATTERY MAKER IS RUNNING LOW ON POWER WEEKS BEFORE THE RECENT SELLOFF IN BRANDNAME STOCKS BATTERED DURACELL'S SHARE PRICE THREE COMPANY INSIDERS INCLUDING THE PRESIDENT UNLOADED 57 MILLION OF STOCK IN THE BETHEL CONN BATTERY MANUFACTURER ACCORDING TO SECURITIES AND EXCHANGE COMMISSION FILINGS SHARES OF THE WORLD'S LARGEST PRODUCER OF CONSUMER ALKALINE BATTERIES TRADED AT 2825 DOWN 875 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY WELL BELOW THE AVERAGE PRICE OF 3440 A SHARE FETCHED IN STOCK SALES EARLIER THIS YEAR BY DURACELL PRESIDENT CHARLES R PERRIN GENERAL COUNSEL GREGG A DWYER AND PETAR P SCHATZ DIRECTOR OF NEW BUSINESS VENTURES THE THREE INSIDERS TRIMMED THEIR HOLDINGS BY A TOTAL OF 165000 SHARES REPRESENTING 15 TO 63 OF THEIR STOCK IN SALES FROM FEB 18 TO MARCH 9 SEC FILINGS SHOW DURING THE PERIOD OF THE SALES DURACELL'S SHARE PRICE WAS CLIMBING GRADUALLY IN A TELEPHONE INTERVIEW MR PERRIN SAID THE SALES BY THE THREE INSIDERS WERE CLEARLY A QUESTION OF SOME MINIMAL DIVERSIFICATION OF PERSONAL WEALTH I HAVE A BIG TAX BILL TO PAY THE VAST MAJORITY OF OUR NET WORTH IS WRAPPED UP IN DURACELL SHARES ADDED MR PERRIN WHO SOLD 15 OF HIS HOLDINGS I AM STILL A MAJOR SHAREHOLDER IN THE COMPANY WITH OPTIONS TO BUY ANOTHER 500000 SHARES THE TWO OTHER INSIDERS DECLINED TO COMMENT THE RECENT SHARP SKID IN DURACELL'S SHARE PRICE MR PERRIN INSISTED IS SOLELY THE RESULT OF WALL STREET TURNING ON CONSUMER BRANDNAME PRODUCTS IN THE WAKE OF PHILIP MORRIS COS' APRIL 2 DECISION TO CUT THE PRICE OF MARLBORO CIGARETTES THAT DECISION HELPED KNOCK 23 OFF THE SHARE PRICE OF THE CIGARETTE MANUFACTURER IN ONE DAY AND ALSO CONTRIBUTED TO DECLINES IN OTHER WELLKNOWN CONSUMERBRAND STOCKS INCLUDING DURACELL BUT MR PERRIN SAID THE RECENT MARKET PREDILECTION FOR GENERIC BRANDS ISN'T APPLICABLE TO THE CONSUMER BATTERY MARKET WHICH IS DOMINATED BY DURACELL AND RALSTON PURINA CO'S EVEREADY THE MARKET SHARE OF PRIVATE LABELS HAS BEEN VERY LOW HISTORICALLY HE SAID WALL STREET ANALYSTS ARE SPLIT ON WHETHER THE COMPANY WHICH WENT PUBLIC IN MAY 1991 AT 15 A SHARE AND ENJOYED A RAPID RISE HAS ANY STEAM LEFT IN ITS STOCK ON APRIL 7 GOLDMAN SACHS & CO REMOVED DURACELL FROM ITS RECOMMENDED LIST A MOVE THAT FOLLOWED A DOWNGRADE IN LATE DECEMBER BY MORGAN STANLEY & CO BEARS ARGUE THAT THE COMPANY'S RELIANCE ON OVERSEAS SALES WHICH LAST YEAR PROVIDED MORE THAN ONETHIRD OF ITS PROFIT MAKE IT VULNERABLE TO THE WEAK EUROPEAN MARKET BUT BULLS CITE THE STRONG GROWTH RATE OF DURACELL'S CORE ALKALINE BATTERY BUSINESS ITS DOMINANT MARKET SHARE AND RESULTING POWER TO SET PRICES MERRILL LYNCH ANALYST DEEPAK RAJ REITERATED HIS BUY RECOMMENDATION ON THE STOCK EARLIER THIS WEEK THE COMPANY'S MAIN BUSINESS IS GROWING AT A VERY STRONG PACE HE SAID HE SEES FISCAL1993 EARNINGS AT 150 A SHARE AND FISCAL 1994 AT 165 FOR THE FISCAL SECOND QUARTER ENDED DEC 26 WHICH INCLUDES SEASONALLY STRONG PRECHRISTMAS SALES THE BATTERY MAKER SAID NET INCOME FELL TO 983 MILLION OR 83 CENTS A SHARE FROM 991 MILLION OR 85 CENTS A SHARE A YEAR AGO MOSTLY BECAUSE OF A HIGHER TAX LIABILITY DURACELL WILL RELEASE EARNINGS FOR THE FISCAL THIRD QUARTER APRIL 29 MR RAJ AT MERRILL PREDICTS NET OF FIVE CENTS A SHARE COMPARED WITH FOUR CENTS LAST YEAR DURACELL INSIDERS HAVE A HISTORY OF PRESCIENT MARKET TIMING EIGHT INSIDERS PURCHASED ITS STOCK AT 15 A SHARE AS PART OF ITS MAY 1991 INITIAL PUBLIC OFFERING SEC FILINGS SHOW THEIR 86 MILLION INVESTMENT MORE THAN DOUBLED BEFORE THE RECENT DECLINE MOREOVER THE DURACELL IPO WAS A REVERSE LEVERAGED BUYOUT BY KOHLBERG KRAVIS ROBERTS & CO WHICH STILL HOLDS A MAJORITY STAKE IN THE COMPANY BACK IN 1988 KKR INVESTMENT PARTNERSHIPS PAID 5 A SHARE FOR THE STOCK AS FOR THE MOST RECENT INSIDER SALES MR PERRIN SOLD 35000 SHARES IN EARLY MARCH FOLLOWING OPTIONS EXERCISES FOR THOSE SHARES AT 5 A SHARE IN LATE DECEMBER MR DWYER SLASHED HIS OVERALL STAKE BY 63 OR 30000 SHARES AND MR SCHATZ PARED HIS HOLDINGS BY HALF IN A SALE OF 100000 SHARES SEC FILINGS SHOW HUMANA INC CHAIRMAN DAVID A JONES PURCHASED 263 MILLION OF SHARES IN THE BIG PROVIDER OF HEALTHPLAN SERVICES LAST MONTH SEC FILINGS SHOW THE PURCHASE OF 33 MILLION HUMANA SHARES BETWEEN MARCH 12 AND MARCH 26 NEARLY DOUBLED MR JONES'S HOLDING IN THE COMPANY SEC FILINGS INDICATE IN A TELEPHONE INTERVIEW MR JONES SAID HE BOUGHT THE SHARES FOR INVESTMENT PURPOSES I THINK IT WAS A GOOD INVESTMENT HE SAID HIS PRIOR SHAREHOLDINGS TOTALED 35 MILLION SHARES LAURIE SCARBOROUGH DIRECTOR OF INVESTOR RELATIONS AT HUMANA SAID MR JONES BOUGHT OVER THREE MILLION SHARES IN OPEN MARKET PURCHASES DURING THE PERIOD MR JONES OBVIOUSLY BELIEVES IN THE COMPANY SHE ADDED THE LOUISVILLE KY COMPANY PROVIDES MANAGEDCARE SERVICES TO APPROXIMATELY 16 MILLION MEMBERS THE VARIOUS SERVICES ARE PROVIDED PRIMARILY THROUGH HEALTH MAINTENANCE ORGANIZATIONS AND PREFERRED PROVIDER ORGANIZATIONS 9304210119 930421 WHO'S NEWS BAXTER AIDE QUITS AFTER GUILTY PLEA QUARTER IS STRONG BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL BAXTER INTERNATIONAL INC'S SENIOR VICE PRESIDENT AND GENERAL COUNSEL G MARSHALL ABBEY RESIGNED OVER HIS MIDDLE EAST DEALINGS THAT LED TO THE COMPANY'S RECENT FELONY GUILTY PLEA THE DEERFIELD ILL HOSPITALSUPPLY COMPANY ALSO POSTED A STRONG FIRSTQUARTER AS NET INCOME ROSE TO 201 MILLION OR 72 CENTS A SHARE INCLUDING AN 81 MILLION GAIN FROM AN ACCOUNTING ADJUSTMENT IN THE YEAREARLIER PERIOD THE COMPANY HAD A LOSS OF 37 MILLION OR 15 CENTS A SHARE THE YEARAGO PERIOD INCLUDED AN ACCOUNTING CHARGE OF 165 MILLION SALES ROSE TO 204 BILLION FROM 197 BILLION MR ABBEY 59 YEARS OLD SPEARHEADED A MULTIYEAR BAXTER CAMPAIGN ALLOWING THE COMPANY TO ESCAPE THE ARAB BOYCOTT LIST IN 1989 BUT THAT EFFORT WHICH MR ABBEY SAID WAS INITIATED BY HIS IMMEDIATE SUPERVISOR BAXTER CHAIRMAN VERNON R LOUCKS JR WENT AWRY WHEN BAXTER SUPPLIED SYRIAN AUTHORITIES WITH EXTENSIVE DETAILS ON THE SALE OF A COMPANY PLANT IN ISRAEL THAT VIOLATED A FEDERAL LAW AGAINST COOPERATING WITH THE ARAB ECONOMIC BOYCOTT OF ISRAEL AND THE COMPANY PLEADED GUILTY LAST MONTH AND AGREED TO PAY A FINE OF 65 MILLION MR ABBEY AGREED TO PAY A CIVIL FINE OF 101000 EVER SINCE ITS GUILTY PLEA BAXTER HAS BEEN UNDER PRESSURE FROM SOME OF ITS HOSPITAL CUSTOMERS AND OTHERS THE COMPANY'S ACTIVITIES WERE BLATANT AND INEXCUSABLE SAID FRED M LOWENFELS A TRUSTEE OF THE JEWISH HOME AND HOSPITAL FOR AGED IN NEW YORK HE IS PARTICIPATING IN AN EFFORT TO CONVINCE HIS INSTITUTION AND A MAJOR HOSPITAL GROUP TO PUNISH BAXTER FAR BEYOND THE MEAGER FINE ASSESSED BY THE GOVERNMENT OFFICIALS OF THE HOSPITAL GROUP PREMIER HOSPITALS ALLIANCE PLAN TO DISCUSS THEIR RESPONSE TO THE BAXTER CASE TODAY OFFICIALS AT ANOTHER HOSPITAL GROUP IN ST LOUIS SAID PRIVATELY THEY PLAN TO MAKE THEIR DISPLEASURE KNOWN TO BAXTER EXECUTIVES ABOUT THE ARAB CASE BAXTER HAS SAID IT BELIEVED ITS ACTIONS WERE LEGAL UNDER AN EXCEPTION TO THE ANTIBOYCOTT LAW IT ALSO HAS SAID NO BRIBES WERE PROMISED IN THE MIDDLE EAST AND IN FACT THE GOVERNMENT DIDN'T MAKE ANY SUCH CHARGE TO SETTLE SHAREHOLDERS' CIVIL LITIGATION OVER THE ARAB MATTER BAXTER HAS PLEDGED TO INVEST 10 MILLION IN ISRAEL OVER THE NEXT FIVE YEARS AND TO REINVEST 75 OF RESULTING PROFITS UP TO ANOTHER 10 MILLION HOWEVER THE COMPANY'S PLEA AGREEMENT MAKES CLEAR THAT AN OUTSIDE ATTORNEY ADVISED MR ABBEY THAT PROVIDING INFORMATION TO BOYCOTT AUTHORITIES WAS ILLEGAL IF DONE AS PART OF AN EFFORT TO GET OFF THE BLACKLIST THE AGREEMENT ALSO SAID MR ABBEY AGREED TO CONFER A BENEFIT ON ARAB STATES OF 225 MILLION TO GET OFF THE BOYCOTT LIST 9304210118 930421 PHILLIPS NATURAL GAS DISCOVERY BARTLESVILLE OKLA PHILLIPS PETROLEUM CO SAID IT DISCOVERED NATURAL GAS IN THE GULF OF MEXICO THE WELL THE GARDEN BANKS 71 NO 2 ENCOUNTERED 348 FEET OF NET GAS PAY THE DISCOVERY IS SIGNIFICANT BECAUSE PAY ZONES IN THE GULF USUALLY DON'T EXCEED 100 FEET SAID A PHILLIPS SPOKESMAN THE PAY ZONE IS THE PRODUCING FORMATION IN AN OIL OR GAS WELL NO FLOW TESTS WERE CONDUCTED YET SINCE THE COMPANY IS CURRENTLY DRILLING THE WELL TO A DEEPER TARGET DEPTH PHILLIPS SAID PHILLIPS WITH A 100 INTEREST IN THE WELL SAID IT WILL DRILL A SECOND WELL THIS MAY IN THE GARDEN BANKS AREA LOCATED ABOUT 130 MILES OFFSHORE NEW ORLEANS 9304210117 930421 CORRECTIONS & AMPLIFICATIONS GAMING CORP'S CHIEF EXECUTIVE OFFICER ROBERT SABES RESIGNED YESTERDAY'S OTC FOCUS COLUMN INCORRECTLY STATED THAT THE COMPANY'S CHIEF FINANCIAL OFFICER HAD RESIGNED HAMILTON P FOX III IS A PARTNER WITH THE LAW FIRM SUTHERLAND ASBILL & BRENNAN IN YESTERDAY'S LEGAL BEAT COLUMN HIS LAST NAME WAS REPORTED INCORRECTLY THE LEVERAGED BUYOUT OF LA PETITE ACADEMY IS BEING LED BY VESTAR CAPITAL PARTNERS INC IN YESTERDAY'S HEARD ON THE STREET COLUMN THE INVESTMENT FIRM WAS INCORRECTLY IDENTIFIED AS VESTAR CAPITAL PROPERTIES POLAROID CORP INTRODUCED A FIFTHGENERATION DESKTOP COLOR FILM RECORDER FOR A SUGGESTED PRICE OF 3995 TO 5495 AN ARTICLE YESTERDAY INCORRECTLY REPORTED THE SUGGESTED PRICE AS 39 TO 54 9304210116 930421 WHO'S NEWS SEI CORP SEI CORP WAYNE PA THIS FINANCIAL SERVICES COMPANY SAID CHARLES A MARSH 47 YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF PRESIDENT AT SEI CAPITAL RESOURCES AN ASSETMANAGEMENT AND CONSULTING UNIT HE HAD BEEN SENIOR VICE PRESIDENT AND REGIONAL MANAGER OF CAPITAL RESOURCES' CHICAGOBASED CENTRAL REGION PRIOR TO MR MARSH'S APPOINTMENT CAPITAL REOURCES HAD BEEN RUN BY ALFRED P WEST JR 50 SEI CORP'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9304210115 930421 TUESDAY'S MARKETS STOCKS SLIDE WITH BONDS AND DOLLAR BANK UTILITY SHARES ARE HIT BY CONCERN OVER THE ECONOMY BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL STOCKS TUMBLED AS INVESTORS DUMPED BANK AND UTILITY SHARES BOND PRICES ALSO SLUMPED AND THE DOLLAR HIT YET ANOTHER POSTWORLD WAR II LOW AGAINST THE YEN THE DOW JONES INDUSTRIAL AVERAGE FELL 2350 POINTS TO 344349 AFTER PLUNGING MORE THAN 40 POINTS EARLIER IN THE DAY STANDARD & POOR'S 500STOCK INDEX SKIDDED 236 TO 44510 AND THE NASDAQ COMPOSITE INDEX SLID 106 TO 66197 TWO OTHER SPECIALIZED STOCK INDEXES THE DOW JONES UTILITY AVERAGE AND THE DOW JONES TRANSPORTATION AVERAGE WHICH BARRELED TO RECORD HIGHS LAST WEEK SUSTAINED SHARP SETBACKS THE UTILITY INDEX LOST 207 POINTS TO 24330 AND THE TRANSPORTATION INDEX DIVED 2216 TO 164501 ANALYSTS SAID A STEADY DRUMBEAT OF BAD NEWS SENT STOCK PRICES REELING FROM THE OPENING BELL FIRST THE COMMERCE DEPARTMENT REPORTED THAT HOUSING STARTS FELL 46 IN MARCH LATER A REPORT FROM JOHNSON REDBOOK SHOWED THAT RETAIL SALES IN THE TWO WEEKS ENDED APRIL 17 SLIPPED A SEASONALLY ADJUSTED 01 FROM MARCH THE REPORT WAS PARTICULARLY WORRISOME BECAUSE IT SEEMED TO CONTRADICT THE VIEW THAT BAD WEATHER ALONE CONTRIBUTED TO THE RECENT SPATE OF GRIM ECONOMIC STATISTICS DAVID SHULMAN CHIEF EQUITY STRATEGIST AT SALOMON BROTHERS SAID HE THINKS THE STOCK MARKET CAME UNDER PRESSURE BECAUSE INVESTORS WERE UPSET WITH THE PRESIDENT SINCE PRESIDENT CLINTON TOOK OFFICE IN JANUARY MR SHULMAN SAID HE HAS BACKED OFF ON A NUMBER OF ISSUES INCLUDING THE SUBJECT OF GAYS IN THE MILITARY AND ASPECTS OF HIS PROPOSED STIMULUS PROGRAM IT SEEMS LIKE THE PRESIDENT HAS A BIG BARK AND A SMALL BITE HE SAID HE ADDED THAT THE HANDLING OF THE WACO STANDOFF CONTRIBUTED TO PERCEPTIONS THAT MR CLINTON WILL HAVE A TOUGHER TIME PUSHING HIS AGENDA THROUGH CONGRESS WITH OPPOSITION MOUNTING IN THE SENATE OVER MR CLINTON'S ECONOMIC PLAN AND THE PRESIDENT'S STANDING IN THE OPINION POLLS FALLING MR SHULMAN SAID INVESTORS NOW FEAR THAT THE PRESIDENT WON'T GET THE DEFICITREDUCTION PACKAGE THAT THE BOND AND STOCK MARKETS HAVE BEEN BETTING ON AS A RESULT MR SHULMAN SAID MANY INVESTORS WERE DUMPING INTERESTRATESENSITIVE STOCKS SUCH AS BANKS AND UTILITIES WHICH HAVE BEEN BUOYED IN RECENT WEEKS ON EXPECTATIONS THAT RATES WILL REMAIN LOW DESPITE REPORTING STRONG EARNINGS FIRST INTERSTATE SANK 2 1/4 POINTS TO 57 1/2 CHEMICAL BANKING SLIPPED 3/8 TO 40 1/4 AND CITICORP EASED 3/8 TO 28 3/4 BUT MR SHULMAN SAID DRUG STOCKS SOARED ON THE BELIEF THAT THE PRESIDENT WON'T BE ABLE TO PUSH THROUGH A FULLFLEDGED HEALTHCARE OVERHAUL PROGRAM PFIZER JUMPED 3 1/4 TO 65 1/8 MERCK GAINED 1 5/8 TO 37 1/2 AND BRISTOLMYERS SQUIBB ADDED 1 3/8 TO 62 WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX SLIPPED 017 TO 10450 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 3171 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1232 ISSUES DECLINED AND 698 ADVANCED BOND PRICES SLIPPED THE TREASURY'S BENCHMARK 30YEAR ISSUE FELL LESS THAN THREEEIGHTHS OF A POINT OR LESS THAN 375 FOR EACH 1000 FACE AMOUNT TO YIELD 675 THE DOLLAR DECLINED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 15963 MARKS AND 11055 YEN COMPARED WITH 15978 MARKS AND 11113 YEN LATE MONDAY 9304210113 930421 WHO'S NEWS ITT CORP ITT CORP NEW YORK DAVID K ZWEINER WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AND DALE R WALKER WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF CREDIT OFFICER AT THIS COMPANY'S ST LOUISBASED ITT FINANCIAL CORP UNIT NEWLY CREATED POSITIONS MR ZWEINER 38 YEARS OLD PREVIOUSLY WAS SENIOR VICE PRESIDENT AND TREASURER OF HELLER INTERNATIONAL CORP CHICAGO A UNIT OF FUJI BANK LTD TOKYO MR WALKER 49 SPENT THE PAST 12 YEARS WITH WELLS FARGO BANK SAN FRANCISCO A UNIT OF WELLS FARGO & CO MOST RECENTLY MR WALKER WAS EXECUTIVE VICE PRESIDENT OF THE BANK'S REAL ESTATE GROUP MR WALKER ALSO WILL ASSUME THE NEW POSITION OF PRESIDENT OF THE LYNDON INSURANCE GROUP A UNIT OF ITT FINANCIAL ITT HAS EIGHT BUSINESS UNITS INCLUDING INSURANCE AND FINANCE HOTELS AUTOMOTIVE AND INDUSTRIAL PRODUCTS 9304210112 930421 LEISURE & ARTS BOOKSHELF AFTER COMMUNISM GLOBAL TURMOIL BY PAUL WOLFOWITZ THE END OF THE COLD WAR RAISED HOPES THAT A NEW WORLD ORDER COULD BE CREATED INTERNATIONAL CONFLICTS WOULD BE CONTROLLED BY A NEW INTERNATIONAL CONSENSUS LED BY THE US AND THE UNITED NATIONS AT THE SAME TIME THE COLLAPSE OF SOVIET COMMUNISM ALSO BROUGHT WITH IT A FEELING OF TRIUMPH IN THE WEST THE FAILURE OF OUR LONGSTANDING IDEOLOGICAL RIVAL CLEARLY ESTABLISHED WESTERN LIBERAL DEMOCRACY AS THE SUPERIOR SYSTEM ZBIGNIEW BRZEZINSKI REJECTS BOTH OF THESE IDEAS IN A SWEEPING NEW APPRAISAL OF THE NEW INTERNATIONAL SYSTEM THE TITLE OF THE BOOK STATES HIS THESIS WITH PROVOCATIVE CLARITY OUT OF CONTROL GLOBAL TURMOIL ON THE EVE OF THE 21ST CENTURY SCRIBNER'S/ROBERT STEWART 240 PAGES 21 MR BRZEZINSKI PERHAPS BEST KNOWN AS PRESIDENT CARTER'S NATIONAL SECURITY ADVISER HAS THE DISTINCTION OF BEING ONE OF THE FEW WHO GOT IT RIGHT ABOUT THE SOVIET EXPERIMENT AS EARLY AS 1962 AND MOST RECENTLY IN HIS PRESCIENT 1987 WORK THE GRAND FAILURE TAKING THAT FAILURE AS HIS POINT OF DEPARTURE MR BRZEZINSKI ARGUES IN OUT OF CONTROL THAT THE COMMUNISTS' ATTEMPT TO ESTABLISH A COERCIVE UTOPIA WAS DEFEATED BY THEIR FAILURE TO DELIVER ON THE MATERIAL LEVEL A FAILURE COMPOUNDED BY THE FALSEHOOD OF THEIR PRETENTIOUS MORAL CLAIMS CAPITALISM DEFEATED COMMUNISM IN HIS VIEW NOT BY BEING INTRINSICALLY ATTRACTIVE BUT BY EXPOSING THE MATERIAL FAILURE AND MORAL DEBASEMENT OF THE COMMUNIST REGIMES NOW MR BRZEZINSKI WORRIES THAT THE FORMER COMMUNIST SOCIETIES WITHOUT A COMPELLING ALTERNATIVE WILL LOSE THEMSELVES IN UNREALISTIC EXPECTATIONS OF MATERIAL PROGRESS AND WHEN THESE EXPECTATIONS ARE NOT MET WILL TURN IN ENVY AND FRUSTRATION TO NEW DOCTRINES OF HATE BUT MR BRZEZINSKI'S GREATER CONCERN IS FOR THE WESTERN DEMOCRACIES AND PARTICULARLY THE US WHERE HE FORESEES THE ULTIMATE EMERGENCE OF WHAT HE TERMS THE PERMISSIVE CORNUCOPIA A SYSTEM IN WHICH INDIVIDUAL DESIRES ARE PURSUED WITHOUT REGARD EITHER TO ANY LARGER SOCIAL GOOD OR TO DISTINCTIONS OF RIGHT AND WRONG BASED ON RELIGION OR MORALITY ALREADY HE THINKS THAT SPIRITUAL EMPTINESS HAS SAPPED THE COHESION OF AMERICA AND THE COUNTRY'S CAPACITY TO BE A WORLD LEADER OR A CATALYTIC NATION MR BRZEZINSKI LISTS 20 SHORTCOMINGS OR DILEMMAS OF AMERICAN SOCIETY FROM LOW SAVINGS AND LOW PRODUCTIVITY GROWTH RATES TO THE MASSIVE PROPAGATION OF MORAL CORRUPTION BY THE VISUAL MEDIA THAT REQUIRE REDRESS IN ORDER FOR THE US TO ACQUIRE RENEWED AUTHORITY FOR SUSTAINED GLOBAL LEADERSHIP SOLUTIONS TO MOST OF THESE PROBLEMS WOULD REQUIRE A DRAMATIC SHIFT IN THE DOMINANT VALUES OF AMERICAN SOCIETY AWAY FROM MATERIALISTIC SELFINDULGENCE FOR WHICH MR BRZEZINSKI PUTS MUCH OF THE BLAME ON TELEVISION AND TOWARD A REEMPHASIS OF FAMILY TIES AND THE GENERATION OF ENDURING PRINCIPLES THE ALTERNATIVE HE WRITES IS AN AMERICA THREATENED BY DISSOLUTION OR EVEN GUERRILLA WARFARE THE PERMISSIVE CORNUCOPIA ALSO TENDS TO UNDERMINE OUR GLOBAL APPEAL AND GENERATES DANGEROUS RESENTMENTS AMONG THE VAST MASSES OF THE WORLD'S POORER MAJORITY BY CREATING EXAGGERATED EXPECTATIONS OF MATERIAL SUCCESS THAT ARE CERTAIN TO BE FRUSTRATED MR BRZEZINSKI WORRIES MUCH MORE ABOUT THIS GLOBAL INEQUALITY THAN HE DOES ABOUT THE PROSPECT OF US RIVALRY WITH THE OTHER ECONOMIC SUPERPOWERS JAPAN AND EUROPE THESE HE CALLS OUR FACELESS RIVALS BECAUSE NEITHER OFFERS A COMPELLING MODEL THAT COULD ENABLE IT TO BECOME A WORLD LEADER WHILE EUROPE MIGHT BECOME A MODEL OF THE BEST OF THE AMERICAN WAY OF LIFE WITHOUT THE WORST HE WRITES BY INFUSING GREATER INTELLECTUAL CONTENT INTO AMERICAN MASS CULTURE SEVERAL DECADES WILL PASS BEFORE IT ACHIEVES THE DEGREE OF UNITY THAT COULD MAKE EUROPE A REAL ALTERNATIVE TO THE S AS A GLOBAL LEADER CHINA ON THE OTHER HAND WITH ITS ECONOMY GROWING AT A SPECTACULAR PACE HAS THE POTENTIAL TO BECOME THE LEADER OF THE WORLD'S POORER STATES BY OPPOSING THE STATUS QUO OF THE AMERICANEUROPEANJAPANESE COALITION MR BRZEZINSKI THINKS THAT CHINA MIGHT TRY TO FASHION A TRIPLE ALLIANCE OF ITS OWN JOINING WITH IRAN AND RUSSIA TO CREATE A POWERFUL MAGNET FOR OTHER STATES DISSATISFIED WITH THE WAY THE WORLD IS RUN NOW CLEARLY MR BRZEZINSKI DOES NOT SHRINK FROM BOLD JUDGMENTS HIS IMPLIED OPTIMISM ABOUT THE CONTINUATION OF SOME FORM OF TRILATERAL ALLIANCE INVOLVING THE US EUROPE AND JAPAN ALTHOUGH NOT THE CURRENTLY FASHIONABLE SCENARIO SEEMS FUNDAMENTALLY CORRECT FOR THE REASONS HE STATES HIS BELIEF IN THE IMPORTANCE OF CHINA'S SPECTACULAR ECONOMIC GROWTH ALSO MAKES SENSE ALTHOUGH CHINA'S POLITICAL FUTURE MAY BE MORE PROBLEMATIC THAN HE IMPLIES IT SEEMS FARFETCHED HOWEVER TO TAKE CHINA'S RHETORICAL PRETENSIONS TO LEAD THE OTHER BILLIONS OF THE WORLD'S POOR AT FACE VALUE CHINA IS LIKELY TO BEHAVE INCREASINGLY LIKE A RICH NATION AS IT BECOMES ONE AND ANY AMBITIONS IT MIGHT HAVE TO LEADERSHIP OF THE HAVE NOT NATIONS WOULD BE VIEWED WITH HOSTILITY BOTH IN INDIA AND IN SOUTHEAST ASIA AND WITH INDIFFERENCE IN MORE REMOTE PARTS OF THE THIRD WORLD MORE PERSUASIVE IS MR BRZEZINSKI'S NOTION OF A WHIRLPOOL OF VIOLENCE ERUPTING AMONG THE 30 COUNTRIES IN EARLY STAGES OF NATIONBUILDING AT RUSSIA'S SOUTHERN FRONTIER ALTERNATIVELY RUSSIA MIGHT TURN TO THE WEST FOR COOPERATION AGAINST THESE THREATS ESPECIALLY IF IT FEARED A HOSTILE CHINA A SCENARIO AT LEAST AS PLAUSIBLE AS MR BRZEZINSKI'S HYPOTHETICAL SINORUSSIANIRANIAN ALLIANCE INDEED WHICHEVER WAY RUSSIA GOES OTHER NEW DEMOCRACIES ARE ALMOST CERTAIN TO LOOK TO THE WEST AND PRINCIPALLY TO THE US RATHER THAN EUROPE FOR REASSURANCE IN AN INSECURE WORLD FOR THOSE COUNTRIES AMERICA'S POWER WILL CONTINUE TO MAKE IT ANATTRACTIVE LEADER WHATEVER ITS OWN SPIRITUAL CONDITION OF MORE IMMEDIATE CONCERN IS THE PROSPECT THAT THE CRISIS OF WESTERN VALUES MR BRZEZINSKI PERCEIVES WILL ERODE AMERICA'S OWN WILLINGNESS TO PLAY A STABILIZING INTERNATIONAL ROLE MR BRZEZINSKI DOES NOT TRY TO SOLVE THE PHILOSOPHICAL PROBLEMS HE HAS IDENTIFIED NOR DOES HE SUGGEST A MODEL OF RELIGIOUS BELIEF SAFE AGAINST SCIENTIFIC SKEPTICISM OR THE TEMPTATIONS OF MATERIAL PROSPERITY THERE IS AN OVERLY EASY OPTIMISM IN MR BRZEZINSKI'S NOTION THAT THE US MIGHT RESOLVE THE PROFOUND PROBLEMS HE IDENTIFIES WITH PHILOSOPHICAL INTROSPECTION AND CULTURAL SELFCRITIQUE IT WOULD BE TOO MUCH HOWEVER TO EXPECT THIS SHORT BOOK TO ANSWER THE PROFOUND QUESTIONS IT RAISES MR BRZEZINSKI IS FORTUNATELY NOT ALONE IN THINKING THAT VALUES AND BELIEFS ARE AS IMPORTANT AS TECHNOLOGY AND ECONOMICS IN SHAPING THE FUTURE AND IF THE CURRENT GROPING EFFORTS TO FACE THE PHILOSOPHICAL AND SPIRITUAL PROBLEMS OF MODERN LIBERAL DEMOCRACY DO ULTIMATELY LEAD TO A NEW SOCIAL CONSENSUS MR BRZEZINSKI WILL TURN OUT ONCE AGAIN TO HAVE BEEN AHEAD OF HIS TIME MR WOLFOWITZ FORMER UNDERSECRETARY OF DEFENSE FOR POLICY DURING THE BUSH ADMINISTRATION IS DISTINGUISHED FELLOW AT NATIONAL DEFENSE UNIVERSITY IN WASHINGTON DC 9304210110 930421 YOUR MONEY MATTERS PROS AND CONS OF BORROWING FROM YOUR BROKER BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL BORROWING AGAINST THE SECURITIES IN YOUR BROKERAGE ACCOUNT CAN LOOK AWFULLY ATTRACTIVE AT TODAY'S LOW INTEREST RATES WHILE MAJOR BANKS ARE CHARGING 18 OR SO ON CREDIT CARDS AND NEARLY 16 ON UNSECURED PERSONAL LOANS THE INTEREST RATE ON MARGIN LOANS GENERALLY RANGES FROM ABOUT 625 TO 825 DEPENDING ON THE SIZE OF THE LOAN AND THE VALUE OF THE SECURITIES IN YOUR ACCOUNT THERE ISN'T A BANK IN THE COUNTRY THAT CAN LEND MORE CHEAPLY THAN YOU CAN BORROW ON MARGIN SAYS JOSEPH GRANO HEAD OF BROKERAGE OPERATIONS FOR PAINEWEBBER GROUP INC MOREOVER BROKERAGE FIRMS MAKE IT EASY TO BORROW AT MERRILL LYNCH & CO CUSTOMERS WITH A CASH MANAGEMENT ACCOUNT CAN SIMPLY WRITE A CHECK OR USE A DEBIT CARD IT'S A VERY HASSLEFREE STREAMLINED FORM OF CREDIT SAYS CHARLES A HUMM SENIOR VICE PRESIDENT OF MERRILL LYNCH CREDIT CORP THE BROKERAGE FIRM'S CONSUMER AND MORTGAGE LENDING UNIT BUT MARGIN LOANS ALSO INVOLVE RISKS AND MANY INVESTORS MAY FIND THAT THEY CAN BORROW AS CHEAPLY AND QUITE POSSIBLY AT EVEN LOWER COST AFTER TAXES ARE TAKEN INTO ACCOUNT WITH A HOMEEQUITY LOAN YOU CAN TAKE A VERY SAFE INVESTMENT AND DOUBLE THE RISK WITH A MARGIN LOAN SAYS JOHN MARKESE PRESIDENT OF THE AMERICAN ASSOCIATION OF INDIVIDUAL INVESTORS A CHICAGOBASED EDUCATIONAL GROUP FOR MOST INDIVIDUALS IT DOESN'T MAKE SENSE HE SAYS INDIVIDUAL INVESTORS HAVE BEEN LOADING UP ON MARGIN DEBT LATELY TOTAL MARGIN LOANS OUTSTANDING TO INDIVIDUALS RECENTLY SURGED TO A RECORD 4516 BILLION ACCORDING TO NEW YORK STOCK EXCHANGE DATA THAT'S MORE THAN THE 4417 BILLION PEAK REACHED BEFORE THE OCTOBER 1987 MARKET CRASH MARGIN LOANS ARE A BONANZA FOR BROKERAGE FIRMS WHICH CAN BORROW AT EVEN LOWER RATES THAN THEY ARE CHARGING CONSUMERS AND THEY ARE UNDOUBTEDLY CONVENIENT FOR BORROWERS THE PROCESS WORKS LIKE THIS GENERALLY INVESTORS CAN BORROW AS MUCH AS 50 OF THE VALUE OF STOCKS IN THEIR BROKERAGE ACCOUNT AND AS MUCH AS 90 OF THE VALUE OF THEIR BONDS DEPENDING ON THE TYPE OF BOND AND ITS MATURITY INTEREST RATES CHARGED ON MARGIN LOANS TYPICALLY FALL AS THE SIZE OF THE LOAN INCREASES SOMEONE BORROWING 100000 OR MORE AT MERRILL LYNCH WOULD PAY 625 THE RATE ON LOANS OF LESS THAN 10000 IS 825 AT MANY FIRMS ACTIVE TRADERS WITH BIG LOAN BALANCES CAN NEGOTIATE EVEN LOWER RATES TYPICALLY THERE'S NO FIXED REPAYMENT SCHEDULE THE DEBT CAN REMAIN OUTSTANDING INDEFINITELY AS LONG AS THE MARKET VALUE OF THE UNDERLYING INVESTMENT MEETS MINIMUM REQUIREMENTS INDEED MERRILL LYNCH LIKE OTHER BROKERAGE FIRMS HAS BEEN PROMOTING MARGIN LOANS AS A SOLUTION TO CUSTOMERS' FINANCING NEEDS MERRILL CALLS THE LOANS INVESTOR CREDIT LINES THE BIG RISK WITH MARGIN LOANS IS THAT THEY ARE RECORDED AS DEBITS AGAINST THE VALUE OF INVESTORS' PORTFOLIOS IF THE MARKET VALUE OF THE STOCKS OR BONDS FALLS BELOW A REQUIRED MINIMUM WHICH DEPENDS ON THE LEVEL OF DEBT BROKERAGE FIRMS CAN REQUIRE INVESTORS TO COME UP WITH ENOUGH CASH TO MAKE UP THE DIFFERENCE SUCH A MARGIN CALL COULD FORCE AN INVESTOR TO REPAY A SIGNIFICANT PORTION OF THE LOAN WITHIN DAYS OR EVEN HOURS FOLLOWING THE STOCKMARKET CRASH OF OCTOBER 1987 MANY INVESTORS WERE FORCED TO SELL AT A LOSS TO COVER MARGIN CALLS IN SOME CASES BROKERS WHO COULDN'T REACH INVESTORS QUICKLY ENOUGH SOLD STOCKS FOR THEM MANY FINANCIAL PROFESSIONALS DIFFERENTIATE BETWEEN MARGIN LOANS TO PURCHASE SECURITIES AND FOR OTHER PURPOSES I'VE ENCOURAGED IT WHERE THE CLIENT IS LOOKING FOR A RATE BREAK BUT I'M NOT A REAL PROPONENT OF MARGIN DEBT TO FINANCE A PURCHASE OF SECURITIES SAYS WILLIAM G BRENNAN A WASHINGTONBASED PARTNER WITH ACCOUNTANTS ERNST & YOUNG IT'S UNLIKELY THAT A SMALL INVESTOR COULD TAKE OUT A MARGIN LOAN AND USE IT TO PURCHASE A FIXEDINCOME INVESTMENT THAT WOULD PAY A YIELD HIGHER THAN THE RATE CHARGED ON THE LOAN MR BRENNAN SAYS AS FOR STOCKS THEY SHOULD BE A LONGTERM INVESTMENT MR BRENNAN SAYS AND THE LAST THING PEOPLE NEED IS A MARGIN CALL MARGIN LOANS ALSO CAN BE USED TO BUY A CAR FOR COLLEGE TUITION AND TO PAY OFF CONSUMER DEBT BUT IT'S BETTER USED FOR SHORTTERM PURPOSES FINANCIAL PROFESSIONALS SAY YOU SHOULD BE ABLE TO PAY IT OFF SOON OR KNOW YOU CAN IF NECESSARY SAYS MR BRENNAN INVESTORS SHOULD NOTE THAT MARGIN DEBT ISN'T TAX DEDUCTIBLE UNLESS IT'S USED TO BUY TAXABLE SECURITIES AND THE AMOUNT OF THE DEDUCTION IS LIMITED TO THE AMOUNT OF INVESTMENT INCOME THE TAXPAYER RECEIVES THE INTEREST ON LOANS USED TO BUY TAXEXEMPT SECURITIES ISN'T DEDUCTIBLE AT ALL FOR THOSE USING LOANS FOR NONINVESTMENT PURPOSES HOMEEQUITY LOANS MAY BE MORE ATTRACTIVE TRUE YOU HAVE TO HAVE SUFFICIENT EQUITY IN YOUR HOME AND THE APPLICATION PROCESS CAN BE COMPLICATED AND COSTLY BUT RATES ON HOMEEQUITY LOANS NOW AVERAGE LESS THAN 7 ACCORDING TO BANK RATE MONITOR A NORTH PALM BEACH FLA NEWSLETTER AND INTEREST PAYMENTS ARE GENERALLY TAX DEDUCTIBLE ON BORROWINGS OF AS MUCH AS 100000 9304210109 930405 LEISURE & ARTS TV PALACE REVOLTING BY DOROTHY RABINOWITZ BY THE TIME THIS APPEARS THE NATION WILL HAVE HAD THE OPPORTUNITY TO SEE THE FIRST PART OF DIANA HER TRUE STORY NBC A DOCUDRAMA ABOUT THE TRIBULATIONS OF THE PRINCESS OF WALES AND THE PERFIDIES OF THE ROYAL HOUSEHOLD BASED ON ANDREW MORTON'S BESTSELLING COMPENDIUM OF PALACE GOSSIP THIS TV EPIC TAKES US INTO THE VERY BEDROOM WHERE CHARLES AND DIANA SPEND MUCH TIME REGARDING EACH OTHER WITH GLOOMY DISTASTE AND NOT ONLY INTO THE BEDROOM BUT ALSO THE BATHROOM WHERE AT REGULAR INTERVALS THE PRINCESS OF WALES IS TO BE SEEN SPRAWLED OVER THE TOILET BOWL THROWING UP HER DINNER AND MUCH ELSE SHE HAS STUFFED INTO HER MOUTH HER HIGHNESS SUFFERS IT APPEARS FROM BULIMIA IN ADDITION DIANA WILL AS REVEALED IN TONIGHT'S EPISODE SUFFER SCORN AND CONTUMELY FROM THE ROYAL FAMILY ON ACCOUNT OF HER COMPASSION FOR VICTIMS OF AIDS NO ONE EXPOSED TO OUR TV MOVIES OR WHO IS OTHERWISE TUNED IN TO THE PREOCCUPATIONS OF THE ENTERTAINMENT INDUSTRY WILL HAVE ANY TROUBLE UNDERSTANDING WHY THESE PARTICULAR TROUBLES AMONG DI'S MANY OCCUPY SO CENTRAL A ROLE IN THIS PRODUCTION IT'S BEEN CLEAR AFTER ALL FOR SOME TIME NOW THAT IN THE EYES OF OUR ENTERTAINMENT INDUSTRY AND ITS SATELLITES AIDS AND BULIMIA AND THE LIKE ARE RIGHT UP THERE IN THE PANTHEON OF PROBLEMS CENTRAL TO OUR CIVILIZATION AS OPPOSED SAY TO LESS POLITICALLY RESONANT AFFLICTIONS LIKE HEART DISEASE MR MORTON DIRECTOR KEVIN CONNOR AND PRODUCER MARTIN POLL HAVE OF COURSE FIGURED THAT OUT TOO WHICH IS WHY WE GET TO KNOW SO MUCH ABOUT THE LOVELY DIANA'S PURGING FORAYS AND MORE IMPORTANT HER VIGILS AT THE BEDSIDE OF DYING AIDS VICTIMS MADE IN DEFIANCE OF THE BUCKINGHAM PALACE CLAN AND WHAT A ROYAL CLAN THE PRODUCERS HAVE GIVEN US HERE AFTER A HALF HOUR OR SO IN THE CLUTCH OF THESE CARICATURES THE OLD CAROL BURNETT SHOW'S SATIRIC PORTRAITS OF THE WOODEN QUEEN AND CONSORT CAN ONLY SEEM BY COMPARISON MODELS OF NUANCE AND DIMENSION THE BURNETT PORTRAITS OF COURSE HAD THE VIRTUE OF HUMOR A COMMODITY OF WHICH THERE IS NOT A SINGLE TRACE IN THIS LUGUBRIOUS ENTERPRISE ONE LOOK AT CHARLES DAVID THRELFALL IS ENOUGH TO TELL THE TALE MR THRELFALL'S PRINCE OF WALES GOES ABOUT WITH THE LOOK OF A MAN IN THE GRIP OF A CHRONIC MIGRAINE HE IS MOREOVER GIVEN TO TALKING THROUGH TIGHTLY CLENCHED JAWS INCOMPREHENSIBLY MOST OF THE TIME UNFORTUNATELY QUITE A LOT OF WHAT THE SCRIPTWRITER HAS PUT IN CHARLES'S MOUTH SOMETIMES GETS THROUGH QUITE CLEARLY AT ONE POINT FOR EXAMPLE MR MORTON'S CHARLES IS SEEN AND WORSE HEARD TELLING THE PRINCESS OF HIS MUM'S COLDNESS AND THAT ALL I EVER WANTED WAS A HUG THE LIKELIHOOD THAT THE REAL CHARLES EVER UTTERED SUCH A LINE IS SHALL WE SAY SLENDER THIS BRINGS US TO THE PROBLEM OF THE PRINCESS AND HER WEIGHT OR MORE PRECISELY HER IMAGINED OVERWEIGHT WHEN EARLY IN THEIR MARRIAGE DURING THEIR HONEYMOON IN FACT THE PRINCESS DI OF THIS FILM FINDS CHARLES WEARING CUFFLINKS GIVEN HIM BY HIS OLD FLAME CAMILLA SHE THROWS A SCREAMING FIT THE FIRST OF MANY IN THESE FOUR HOURS ON DISCOVERING THAT CHARLES CONTINUES TO MOON OVER CAMILLA DI CREEPS INTO THE KITCHEN THEREBY EXCITING AWE AND CONSTERNATION AMONG THE SERVANTS AND BEGINS STUFFING THE ROYAL MAW OFF TO THE BATHROOM THE LOVELY DI GOES THEN TO PURGE ACCOMPANIED BY AN EERIE MELODY IT MUST BE HARD TO COME UP WITH A MUSICAL BACKGROUND FOR VOMITING BUT THE PRODUCERS DID IT DIANA HAS OTHER PROBLEMS TO BE SURE AMONG THEM THE AGGRESSIVE PRESS CORPS I JUST WANT THEM THE PRINCESS MOANED IN PART ONE TO LEAVE CHARLES AND I ALONE WE SUSPECT ITS THE SCRIPTWRITER STEPHEN ZITO AND NOT THE REAL PRINCESS DIANA WHO NEEDS TO GET A GRIP ON THE KING'S ENGLISH HERE AT ANY RATE NOTHING IN THE PROBLEM DEPARTMENT WITH THE EXCEPTION OF CHARLES PLAGUES THE PRINCESS DI OF MR MORTON'S CREATION MORE THAN ENCOUNTERS WITH THE QUEEN THIS ELIZABETH II ANNE STALLYBRASS DOES INDEED MAKE A DAUNTING MOTHERINLAW A HEADY MIX OF LADY MACBETH AND ALL THE CRUEL TYRANTS PRESIDING OVER ORPHAN ASYLUMS IN VICTORIAN NOVELS WHEN FUNLOVING DI GIGGLES AT THE DINNER TABLE THE QUEEN GLARES WITH THE SORT OF MENACE THAT MAY REMIND PEOPLE OF JACK NICHOLSON'S HOMICIDAL MANIAC IN THE SHINING THINGS PROCEED TO GROW EVER DARKER FOR DI STUCK HAVING TO WATCH PRINCE CHARLES SHOOT BIRDS AND OTHER SMALL ANIMALS A SPORT DIANA LOATHES AND SHE HAS A POINT FURTHER SHE COMPLAINS ALL CHARLES WANTS TO DO IS TALK TO HIS MOMMY THE PRINCESS THEN STALKS STRAIGHT OFF TO THE SERVANTS'S KITCHEN TO EAT AND THIS VISIT FROM THE UPSTAIRS SET ONLY ELICITS MORE DISAPPROVAL FROM THE DOWNSTAIRS STAFF IN BETWEEN SESSIONS WHEREIN DI AND FERGIE MOAN ABOUT THEIR LIVES AND HOW BORING AND STUPID EVERYONE AROUND THEM IS WE GET TO SEE DI LOOK LIKE KING HENRY VIII AS SHE RIPS INTO A CHICKEN LEG HAVING BINGED SHE MAKES STRAIGHT TO THE BATHROOM ACCOMPANIED BY THE NOWFAMILIAR BULIMIAN RHAPSODY FOR STRINGS AND OBOE IT ISN'T EASY TO CHOOSE FROM THE MANY MEMORABLE LINES IN THIS SCRIPT WROUGHT WITH ALL THE SUBTLETY OF A TROOP OF DYSPEPTIC ELEPHANTS THERE IS THE SCENE FOR INSTANCE WHERE THE QUEEN TELLS CHARLES HE'S NOT READY TO SUCCEED HER BUT MUMMY CHARLES WHINES THAT'S NOT FAIR I'VE DONE EVERYTHING THAT'S EXPECTED OF ME YOU PROMISED MESSRS MORTON POLL AND COMPANY ARE NOTHING IF NOT MASTERS OF THE IMPROBABLE CONVERSATION DI FINDS SURCEASE FROM HER TROUBLES BY ENLISTING IN THE CAUSE OF AIDS RELIEF SHE TELLS THE UNSYMPATHETIC CHARLES THAT THIS WORK IS HER MOST IMPORTANT TASK AND SHE WON'T LET RIBBON CUTTING GET IN THE WAY OF HELPING PEOPLE IN ONE SCENE AT THE BEDSIDE OF A FRIEND DYING OF AIDS DIANA READS THE LORD'S PRAYER THE GRATEFUL MAN RECITES BUT ONE LINE FOR THOU ART WITH ME LEAVING NO DOUBT THAT WE ARE TO HEAR THE THOU IN QUESTION AS REFERRING TO PRINCESS DI HERSELF WHILE DIANA ASCENDS THUS TO THE STATUS OF THE DIVINE THE PRINCE CHARLES OF THIS PRODUCTION REMAINS A HOPELESSLY EARTHBOUND CLOD EVEN SO HIS VIEW OF DIANA REVEALS A CERTAIN DISCERNMENT CLEAR IN HIS RESPONSES TO DIANA'S RAGES AS SHE SMASHES CABINETS AND SUCH YOU'RE SO STUFFY AND BORING AND OLD BEFORE YOUR TIME THE GRACIOUS DIANA OF THIS SAGA SNARLS WHEN CHARLES DOESN'T WANT TO HANG AROUND A DISCO FLOOR ALL NIGHT AT SUCH TIMES CHARLES IS WONT TO SAY YOU'RE BEING TIRESOME DIANA A SIMPLE THOUGHT BUT IT SUMS THE MATTER UP NICELY SEE RELATED LETTER LETTERS TO THE EDITOR THE 23RD PSALM WSJ APRIL 21 1993 9304050025 9304210107 930421 APPRAISER TANNEHILL IS CONVICTED IN SCHEME THAT FELLED 5 THRIFTS DALLAS PAUL D TANNEHILL WAS CONVICTED ON NINE COUNTS OF CONSPIRACY AND FRAUD FOR HIS ROLE IN A REAL ESTATE LENDING SCHEME THAT LED TO THE FAILURE OF FIVE FINANCIAL INSTITUTIONS MORE THAN A DECADE AGO THE 44YEAROLD DALLAS APPRAISER IS THE LAST OF ABOUT 100 DEFENDANTS PROSECUTED FOR THEIR ROLES IN OBTAINING LOANS FROM THE THRIFTS FOR AN ILLFATED CONDOMINIUM DEVELOPMENT ALONG INTERSTATE 30 EAST OF DALLAS A GOVERNMENT PROSECUTOR SAID MR TANNEHILL SUBMITTED PROPERTY APPRAISALS THAT WERE ALWAYS HIGHER THAN WHAT THE LAND HAD SOLD FOR SOMETIMES BY A FACTOR OF TWO OR THREE THE APPRAISALS WERE SUBMITTED IN 1982 AND EARLY 1983 IN SUPPORT OF LOAN APPLICATIONS THE PROSECUTOR SAID AND ENABLED OTHER DEVELOPERS TO CARRY OUT THE SCHEME THAT EVENTUALLY LED TO THE THRIFTS' COLLAPSE THE GOVERNMENT CONTENDED THAT MR TANNEHILL RECEIVED 500000 IN FEES FOR THE FRAUDULENT APPRAISALS AS WELL AS UNSPECIFIED PROFITS FROM HIS INTEREST IN THE CONDOMINIUM DEVELOPMENT THOMAS MILLS AN ATTORNEY FOR MR TANNEHILL SAID HIS CLIENT WAS DISAPPOINTED BY THE VERDICT AND PLANS TO APPEAL THE ATTORNEY NOTED THAT THE FEDERAL COURT JURY FOUND MR TANNEHILL INNOCENT ON FOUR COUNTS OF THE 13COUNT INDICTMENT WE'RE STILL TRYING TO ANALYZE WHAT APPEARS TO BE A CONFLICT BETWEEN ACTIONS HE WAS FOUND GUILTY ON AND OTHER ACTIONS ON WHICH HE WASN'T FOUND GUILTY MR MILLS SAID MR TANNEHILL IS CURRENTLY FREE ON HIS OWN RECOGNIZANCE HE FACES A SENTENCE OF AS MUCH AS 21 YEARS IN PRISON AND A 50000 FINE SENTENCING IS SET FOR JUNE 25 9304210106 930421 LEISURE & ARTS FIVEANDDIMES FOR THE '90S BY THOMAS J FIELDSMEYER LOS ANGELES ABOUT THE MOST FUN YOU CAN HAVE AT A 99 CENTS ONLY STORE IS TO SPEND SOME TIME PESTERING ONE OF THE EMPLOYEES WITH QUESTIONS ABOUT THE MERCHANDISE HOW MUCH IS THE 18PACK OF BRILLO PADS YOU MIGHT ASK OR WHAT DO THOSE FEATHER DUSTERS GO FOR OR MAYBE WHAT DO YOU WANT FOR THAT INDUSTRIALSIZE BOX OF CRACKER JACK HE MIGHT ANSWER TWO OR THREE TIMES BUT THEN HE'LL POINT TO A SPOT ON THE WALL HIGH ABOVE THE AISLES WHERE A PROMINENT SIGN LISTS THE STORE'S THREEPART CREDO 1 NO ITEM OVER 99 CENTS 2 ALL UNMARKED ITEMS ARE 99 CENTS 3 ALL ITEMS MARKED HIGHER THAN 99 CENTS ARE ALSO 99 CENTS I THOUGHT THE 99 CENTS ONLY STORES OPEN 9 AM TO 9 PM 9 DAYS A WEEK WERE A DANDY MARKETING SCHEME UNTIL I CAME ACROSS EVERYTHING'S A DOLLAR IT'S A LITTLE SHOP WEDGED BETWEEN A DEPARTMENT STORE AND A FRAME SHOP IN A SANTA MONICA MALL EVERYTHING'S A DOLLAR'S MOTTO IS NOTHING OVER 100 ALL ITEMS NOT PRICED ARE 100 ALL ITEMS PRICED OVER 100 ARE 100 THE PRICE IS DEFINITELY RIGHT FOR THIS TOWN NOW THESE DAYS LOS ANGELES DOESN'T HAVE A LOT TO RECOMMEND IT AS A HOME FOR THOSE OF MODEST MEANS THE CITY SEEMS TO BE PERMANENTLY IN RECESSION WORK IS DIFFICULT TO COME BY RENTS AND HOME PRICES REMAIN STUCK AT UNREASONABLE RATES BUT IF YOU'RE IN THE MARKET FOR SAY A QUARTERPOUND OF BALLOONS OR A 300PACK OF COTTON SWABS OR A POUND BAG OF CHEESE CURLSWELL THEN THIS IS YOUR KIND OF TOWN IN VIRTUALLY EVERY LOS ANGELES NEIGHBORHOOD THESE DAYS YOU CAN FIND SOME VARIATION OF THIS LATTERDAY FIVEANDDIME STORE THE FIRST 99 CENTS ONLY STORE OPENED IN 1982 THE CHAIN NOW HAS 30 OUTLETS THE HIGHCONCEPT DISCOUNT STORE SEEMS TO BE SOME SORT OF INVERSE ECONOMIC INDICATOR AS EMPLOYMENT FALLS THE NUMBER OF ITEMS YOU CAN BUY FOR A DOLLAR OR LESS IN LA RISES I RECENTLY SPENT A WEEK SAMPLING THE INVENTORIES OF THESE STORES MY CONCLUSION A DOLLAR DOESN'T BUY WHAT IT USED TO IN SOUTHERN CALIFORNIA IT BUYS MORE TO BE SPECIFIC A LOAF OF WONDER BREAD A DOZEN EGGS 14 OUNCES OF ANIMALSHAPED COOKIES A BUCKET OF CARAMEL CORN ANYTHING FROM THE FIVESHELFHIGH AISLE OF SHAMPOOS THREE CANS OF AJAX CLEANSER A FOURPACK OF YOYOS 10 POUNDS OF POTATOES A 24PACK OF CHINESEMADE PENCILS AND SIX PACKS OF MARIGOLD SEEDS EACH FETCH THE 99 CENTS ONLY STORES' EPONYMOUS PRICE AT THE INTERSECTION OF WILSHIRE BOULEVARD AND LA BREA A BIGTIME CROSSROADS I RECENTLY CAME ACROSS ONE DOLLAR BILL'S A MODEST EMPORIUM WHERE IT TURNS OUT EVERY ITEM GOES FOR 99 CENTS IF MY WIFE AND I HAD BEEN LOOKING TO OUTFIT OUR KITCHEN ON A BUDGET WE COULDN'T HAVE DONE BETTER FOR 495 WE COULD HAVE BROUGHT HOME AN EIGHTINCH NONSTICK FRYING PAN FOUR STEAK KNIVES A MEAT CLEAVER A THREEPACK OF MIXING BOWLS AND A TURKEY BASTER THESE STORES ARE PROLIFERATING SO QUICKLY IN LA THAT IT'S HARD TO BE SURE YOU'RE NOT WALKING INTO A SHAMELESS SCAM ANY SHOP OWNER CAN SLAP UP A BANNER THAT SAYS 99 CENTS IN MY NEIGHBORHOOD IN FACT MOST EVERYONE DOES ONE SHOP OWNER'S SIGN ENUMERATES THE FEW ODD PRODUCTS ACTUALLY AVAILABLE AT THE MAGICAL PRICE BATTERIES CARTONS OF EGGS AND SIXPACKS OF SODA THERE'S A PLACE AROUND THE CORNER FROM MY HOME WITH A BIG 98 CENTS SIGN IN FRONT BUT INSIDE THE 98 CENTS IN QUESTION TURNS OUT TO BE MORE A THEME THAN A RULE A 12PACK OF TOILET PAPER IS 398 A FRYING PAN GOES FOR 898 AND A SUNBEAM MIXER CARRIES A PRICE TAG OF 2698 AT SOME OF THE LESSREPUTABLELOOKING STORES THE MERCHANDISE SEEMS LIKE IT MIGHT HAVE BEEN LEFT OVER FROM THE LOOTING IN LAST SPRING'S RIOTS AT THE MORE ESTABLISHED CHAINS THE ITEMS IN STOCK CAN BE JUST PLAIN ODD AT EVERYTHING'S A DOLLAR I FOUND A SIZABLE INVENTORY OF LAMINATED DESERT STORM TRADING CARDS BEARING PHOTOS OF WEAPONS USED IN THE WAR ON ONE AISLE I FOUND TIE RACKS NEXT TO TOY M16 ASSAULT RIFLES AND THE VIDEO RACK SEEMED TO HAVE AN OVERSUPPLY OF SAN DIEGO CHARGERS 1990 HIGHLIGHT FILMS WHERE DOES ALL THIS STUFF COME FROM I CALLED THE 99 CENTS ONLY STORES AND TALKED TO ERIC SCHIFFER A VICE PRESIDENT WHO EXPLAINED THAT MOST OF THE ITEMS THE STORES CARRY ARE CLOSEOUTS LIKE A PACKAGE CHANGE HE SAID SOMEONE COMES OUT WITH A NEW IMPROVED VERSION AND THEY WANT TO GET RID OF THE OLD VERSIONS OR AN OVERPRODUCTION THE PRODUCT IS STILL GOOD BUT THE MANUFACTURER HAS TO MOVE IT HE SAID MORE THAN HALF OF WHAT HIS COMPANY CARRIES IS NAMEBRAND MERCHANDISE WHILE I HAD HIM ON THE PHONE I ASKED HOW THINGS WERE GOING AT 99 CENTS ONLY STORES HE TOLD ME ABOUT ALL THE LOCATIONS THE BIGGEST ONE IS 25000 SQUARE FEET AND THE GROWTH HE EXPECTS THE CHAIN TO ADD SIX OR SEVEN STORES THIS YEAR THE BIGGEST PROBLEM FOR THE 99 CENTS ONLY STORES IS THE KNOCKOFFS THAT KEEP POPPING UP AROUND TOWN DESPITE THE CHAIN'S TRADEMARKED NAME YOU'LL SEE A LOT OF 98 CENTS STORES IN LOS ANGELES HE SAID BUT WE TALK TO THEM AND THEY CHANGE THEIR NAMES OR THEY'LL TURN ONE OF THE 9'S UPSIDE DOWN AND CALL IT A 96 CENTS STORE THERE WAS ONE THAT CALLED ITSELF THE 99 CENTS STORE AND WE TALKED TO THEM AND THEY CHANGED IT TO THE 98 CENTS PLUS ONE STORE WITH THE SORT OF SUCCESS THE 99 CENTS ONLY STORES ARE ENJOYING DOES MR SCHIFFER HAVE ANY OTHER CONCERNS WELL ONE HE SAID INFLATION MR FIELDSMEYER IS A WRITER IN LOS ANGELES 9304210105 930421 LEISURE & ARTS CHILE HEADS IN THEIR ELEMENT BY HARLAN C CLIFFORD ALBUQUERQUE NM THE SMELL WAS THE FIRST CLUE RICH AND POWERFUL IT BILLOWED OUT THE DOOR OF THE CONVENTION HALL HERE THE TANG OF HOT PEPPERS INSIDE A SIXFOOTTALL RED PEPPER WORKED THE CROWD AT THE FIFTH ANNUAL FIERY FOODS FESTIVAL SHAKING CHILDREN'S HANDS MORE THAN 100 COMPANIES WERE REPRESENTED MOSTLY FAMILY OPERATIONS ALL PROMOTED ONE THING A SEARING SENSATION ON YOUR TONGUE MANY PEOPLE WORE BUTTONS WITH THE WORD MILD ON THEM WITH A RED SLASH THROUGH IT ABOUT 7000 PEOPLE RECENTLY PAID 4 TO VISIT THE CAVERNOUS NORTHWEST HALL IN ALBUQUERQUE'S CONVENTION CENTER ACCORDING TO DAVE DEWITT EDITOR OF CHILE PEPPER MAGAZINE AND PRODUCER OF THE EVENT WITH HIS WIFE MARY JANE WILAN THEY ARE KNOWN AS CHILE HEADS AND THEY CAME TO TASTE PRODUCTS THEY CAN'T OTHERWISE GET EVADNEY'S OLD FASHIONED HABANERO PICKLED PEPPER SAUCE GRINGO SALSA DAT'L DO IT DATIL PEPPER HOT SAUCE AND HUNDREDS OF OTHER FOODS PROFFERED BY TINY COMPANIES FROM 14 STATES AND TERRITORIES AS DISTANT AS CONNECTICUT AND THE VIRGIN ISLANDS WHILE MOST OF THE FOODS ON DISPLAY HAD A SOUTHWESTERN FLAVOR TO THEM CAJUN INDIAN CARIBBEAN AND ASIAN CUISINES WERE REPRESENTED TOO SOME OFFERINGS WERE TRULY EXOTIC LIKE CHOCOLATES CON CREMA CALIENTE MILK CHOCOLATES WITH REDPEPPERCREAM CENTERS AND CRAZY ED'S CAVE CREEK CHILI BEER MADE WITH A SERRANO PEPPER IN EACH BOTTLE THE CREATOR OF CHILI BEER THE APPROPRIATELY NAMED ED CHILEEN WAS INSPIRED BY THE WORM FOUND IN SOME TEQUILA BOTTLES MR CHILEEN AND HIS RELATIVES GROW THEIR OWN PEPPERS NEAR THEIR CAVE CREEK ARIZ MICROBREWERY AND HAVE BEEN MAKING CHILI BEER FOR LESS THAN TWO YEARS THIS YEAR THEY EXPECT TO SELL 250000 CASES CHILI BEER WON THE WEEKEND'S POPULAR VOTING FOR MOST UNUSUAL PRODUCT FOLLOWED BY THINGS LIKE HABANEROPECAN BRITTLE AND PAPAYA SALSA UNUSUAL IS THE NAME OF THE GAME AT THIS ANNUAL FOOD FEST WHERE ENTREPRENEURS TRY TO CATCH THE EYE OF BUYERS FROM GOURMET STORES FOOD CATALOGS AND SPECIALTY SHOPS THE PEOPLE AT SUMPTUOUS SELECTIONS THIS YEAR WERE PUSHING THEIR BLAZE ATOMIC SALSA WHICH IS AS HOT AS ITS NAME SUGGESTS THE FUNNIEST THING IS WHEN SOME BIG MACHO GUY COMES BY AND TRIES BLAZE ATOMIC SAID DEE BLONSKI AN OWNER OF SUMPTUOUS SELECTIONS HE SAYS OH THAT'S NOT VERY HOT' AND THEN HE GOES AROUND THE CORNER AND YOU CAN HEAR HIM COUGHING AMONG THE OTHER HOT STUFF BEING OFFERED BARBECUED CHICKEN WINGS HOTPEPPER BREADS LIME POTATO CHIPS JALAPENO JELLIES AND BLOODY MARYS THAT MAKE YOUR EYES WATER ONE OF THE REASONS I MOVED HERE WAS FOR THE FOOD SAID GREEN BAY WIS NATIVE JERRY FISHER WEARING A HAT AND TSHIRT THAT PROCLAIMED STAMP OUT GRINGO FOOD HE EXPLAINED THAT AT HOME HE MAKES HIS OWN SALSA PUTTING IT ON NEARLY EVERYTHING I THINK IT'S JUST THE SENSATION OF HAVING YOUR MOUTH ON FIRE SAID BILL GRIFFITH A CROWN POINT NM RESIDENT AS HE TRIED TO PUT HIS FINGER ON WHY HE LIKES HOT FOODS YOU'LL GO ALONG THE BOOTHS AND TASTE FOUR OR FIVE THINGS AND THEN YOU'LL FIND SOMETHING THAT WILL JUST LIGHT YOU UP AND YOU GO LOOKING FOR THE CHEESE AND THE ICE WATER AND THE BEER THE AFOREMENTIONED BOOTHS WERE PACKED TOGETHER IN A HALFDOZEN ROWS IN THE HALL AND WERE STACKED WITH PRODUCT SAMPLES AND COLORLOTS OF REDS GREENS YELLOWS AND ORANGES THIS IS LIVELY FOOD WITH LIVELY WORDPLAY TO PROMOTE IT UNLEASH THE FLAVOR PROCLAIMS MRS DOG'S HOT SAUCES RELIGIOUS EXPERIENCE SALSAS INCLUDE A CAUTIONARY TALE BY FOUNDER JEFF MCFADDEN ABOUT WAKING UP IN THE DESERT WITH A RECIPE PINNED TO HIS CLOTHES FOR THE TRULY ADVENTUROUS THERE ARE PRODUCTS SUCH AS CAPITAL PUNISHMENT IF YOU'RE REALLY CRAZY YOU'D SPRINKLE THAT LIKE RED PEPPER ON A PIZZA WARNED DAVE GROSS POINTING TO A SHAKER FULL OF THE EVILLOOKING RED POWDER IT IS COMPOSED OF THE HOTTEST SEVEN PEPPERS IN THE WORLD HE SAID HIS BOOTH FEATURED HIS NEIGHBORS' PRODUCTS MARKETED UNDER THE HOT HEADS LABEL IN ADDITION TO CAPITAL PUNISHMENT LEGAL IN ALL 50 STATES THERE WERE SAUCES CALLED LAST RITES AND SODAMNED INSANE MOTHER OF ALL SAUCES A SAMPLE OF CAPITAL PUNISHMENT LEFT THIS FESTIVALGOER JUMPING UP AND DOWN SWEATING AND HOOTING CAPSAICIN THE ACTIVE INGREDIENT IN HOT PEPPERS WHICH ARE NATIVE TO THE AMERICAS TRICKS THE MOUTH'S NERVES INTO BELIEVING IT IS UNDER ATTACK IN RESPONSE THE BODY DUMPS MORPHINELIKE SUBSTANCES INTO THE BLOODSTREAM LEAVING THE DINER FEELING GOOD ALL OVER THE TRICK IS FIGURING OUT HOW TO COOK WITH THIS STUFF SO IT DOESN'T TAKE OVER THE FOOD SAID MR GROSS IN AN OBVIOUS UNDERSTATEMENT BY MIDAFTERNOON THE FESTIVAL FELT LIKE A REAL PARTY MIDDLE AMERICA WAS HERE MOSTLY WHITE A LOT OF YOUNG FAMILIES WITH THEIR KIDS THERE WERE CONSTANT LINES AT THE BARS SET UP ON OPPOSITE WALLS A LOT OF PEOPLE WERE SWEATING AND REACHING FOR HANDKERCHIEFS THE LARGE HAPPY CROWD MADE FOR A LOT OF OPTIMISM AMONG THE MAKERS OF ALL THIS HOT STUFF WE'RE HOPING TO DO A MILLION DOLLARS THIS YEAR SAID KEN REA COOWNER WITH SUZANNE BONJORNO OF CAESAR & ME IN MANHATTAN BEACH CALIF THE COMPANY STARTED UP IN OCTOBER AND NOW SELLS MORE THAN 7000 BOTTLES OF HOT SAUCES WEEKLY AMERICANS HAVE FINALLY STARTED TO OPEN THEMSELVES UP TO HOT FOODS OBSERVED STRAWHATTED BOB KENNEDY WHO WHIPPED UP 500 CASES OF HIS VIRGIN FIRE SALSAS IN A KITCHEN BLENDER AT HIS HOUSE IN THE US VIRGIN ISLANDS A LARGE WOMAN IN GLASSES DIPPED A CHIP INTO HIS VICIOUSLY HOT EASTERN CARIBBEAN HOT PEPPER SAUCE IT'S ABOUT TIME SHE SAID SMILING MR CLIFFORD IS A WRITER IN ASPEN COLO 9304210104 930421 MARKETING BRAND NAMES ARE GETTING STEAMED UP TO PEEL OFF THEIR PRIVATELABEL RIVALS BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL BIG BRANDS ARE FIGHTING BACK LAST WEEK PROCTER & GAMBLE CO ANNOUNCED STEEP PRICE CUTS ON ITS DISPOSABLE DIAPERS ONLY A WEEK AFTER PHILIP MORRIS COS SAID IT PLANS TO SLASH MARLBORO PRICES BY AS MUCH AS 20 IN BOTH CASES THE GIANTS ARE TRYING TO BEAT NEMESIS PRIVATE LABELS AT THEIR OWN GAME CUTTHROAT PRICING OTHERS ARE EXPECTED TO FOLLOW OR AT LEAST DELAY ANY PRICE INCREASES MEANING CONSUMERS CAN EXPECT LOWER OR PLATEAUING PRICES ON A PLETHORA OF PRODUCTS FROM BAKED GOODS TO COLD MEDICINES PROCTER HAS ALWAYS BEEN A TREND SETTER THEY ARE MARKETING 101 AND EVERYONE ALWAYS LOOKS TO WHAT THEY'RE DOING SAYS PHIL JOHNSON PRESIDENT OF LEO SHAPIRO & ASSOCIATES A MARKETRESEARCH CONCERN PRICE ISN'T THE ONLY BIGBRAND WEAPON AGAINST PRIVATE LABELS KNOWING THAT PRIVATE LABELS HAVE LIMITED ADVERTISING AND RESEARCHANDDEVELOPMENT MONEY SOME BIGNAME MANUFACTURERS ARE BOOSTING PROMOTIONS AND ADVERTISING AND ROLLING OUT NEW VARIETIES OF EXISTING BRANDS STILL OTHERS ARE USING THEIR CLOUT WITH ALLIMPORTANT RETAILERS TO GATHER DATA THAT HELP THE BIG BRANDS TO TRACK WHERE PRIVATE LABELS ARE MAKING INROADS AND CONCENTRATE ATTACKS THERE PILLSBURY WHICH MAKES REFRIGERATED DOUGH AMONG OTHER PRODUCTS HAS STEPPED UP EFFORTS TO GATHER CHECKOUT SCANNER DATA TO TRACK CONSUMER PREFERENCES AND IT IS CURRENTLY TESTING INSTALLING COMPUTER HOOKUPS WITH RETAILERS TO MANAGE INVENTORY LEVELS WHERE DATA SHOW PRIVATE LABELS GAINING ON PILLSBURY WE'LL MAKE FUNDAMENTAL CHANGES MORE PROMOTIONAL SPENDING AND SUPPORT AND MORE ADVERTISING THERE ARE SOME INSTANCES WHERE WE ARE TAKING PRICE DECLINES SAYS CRAIG EVANICH VICE PRESIDENT AND GENERAL MANAGER FOR PILLSBURY A UNIT OF GRAND METROPOLITAN PLC IT'S ALL PART OF AN EFFORT HE ADDS TO MAKE LIFE FOR ALL OUR RIVALS BOTH PRIVATE LABELS AND BRANDS AS UNPLEASANT AS POSSIBLE PILLSBURY'S PRIMARY PRIVATELABEL RIVAL IS THE MERICO INC UNIT OF ANHEUSERBUSCH COS PILLSBURY SAYS ITS PRIVATELABEL RIVAL CONTROLS 30 OF THE REFRIGERATEDDOUGH MARKET WHILE IT HAS ABOUT 70 IT ISN'T CLEAR WHETHER THE MOVES WILL RESTORE LOST MARKET SHARE TO BRANDNAME GIANTS THOUGH THEY HAVE SEVERAL FACTORS IN THEIR FAVOR THEY CAN SPREAD PRICE AND PROMOTIONRELATED EXPENSES OVER OTHER PROFITABLE PRODUCTS AND HAVE MORE ROOM TO CUT COSTS THROUGH MANUFACTURING EFFICIENCIES LEONARD G TEITELBAUM ANALYST WITH MERRILL LYNCH CONTENDS THAT IF A MAJOR BRAND APPLIES ITSELF I REALLY THINK IT WILL WIN ANY BATTLE SOME PRIVATELABEL MAKERS AREN'T UNDULY WORRIED JEFFREY PHILLIPS VICE PRESIDENT MARKETING OF WEBSTER INDUSTRIES INC A PRIVATELABEL MAKER OF PLASTIC TRASH BAGS SAYS PRIVATELABEL COMPANIES TRAVEL LIGHTER THAN THEIR BIG RIVALS MOREOVER PRICE CUTTING AND OTHER MOVES COULD BACKFIRE EVEN AFTER P&G CUTS PRICES 16 ON ITS LUVS DISPOSABLE DIAPERS LUVS WILL REMAIN AT A 17 PREMIUM P&G ALSO CUT THE PRICE OF ITS PAMPERS DIAPERS BY 5 BOTH PRICE CUTS ARE EFFECTIVE MAY 17 AND WHO SAYS CONSUMERS WILL CANCEL NEWFOUND LOYALTY TO PRIVATE LABELS WHICH SERVED THEM WELL AND CHEAPLY IN RECENT YEARS MOREOVER BY SLASHING PRICES P&G MAY HAVE TO SACRIFICE PRODUCT QUALITY AND POSSIBLY PROFITS ANDREW SHORE AN ANALYST WITH PAINE WEBBER PREDICTS PRICE CUTS IN MARKETS WHERE BIG COMPANIES HAVE LOST SHARE TO PRIVATE LABELS AND THAT USUALLY MEANS PRODUCT CATEGORIES WHERE CONSUMERS NOTICE LITTLE QUALITY DIFFERENCE SUCH AS OVERTHECOUNTER PAIN KILLERS BOTTLED WATER PLASTIC BAGS PAPER TOWELS DAIRY PRODUCTS AND SOFT DRINKS WILLIAM LEACH AN ANALYST WITH DONALDSON LUFKIN & JENRETTE SAYS BIGNAME COLAS ARE BECOMING UNIQUELY VULNERABLE AS THE TASTE OF PRIVATELABEL COLAS IMPROVES COKE AND PEPSI WILL HAVE TO LOWER COSTS AND LOWER PRICES THEY'LL HAVE TO DO WHAT PROCTER & GAMBLE DID MR LEACH SAYS COCACOLA CO MAY ALREADY BE GEARING UP TO BATTLE PRIVATE LABELS SUCH AS WALMART STORES INC'S SAM'S AMERICAN CHOICE AND LOBLAW COS' PRESIDENT'S CHOICE TOM PIRKO PRESIDENT OF BEVMARK INC A BEVERAGEINDUSTRY CONSULTANT SAYS COCACOLA IS TAKING A TWOPRONGED TACK BOOSTING NATIONAL ADVERTISING WHILE INCREASING PROMOTIONAL ALLOWANCES TO RETAILERS IN SPECIFIC MARKETS WHERE PRIVATELABEL COLAS ARE GAINING GROUND THEY'RE LOWERING PRICES IN A VERY TACTICAL WAY TO HOLD MARKET SHARE WHILE CONTINUING TO ADVERTISE IN A WAY THAT MAINTAINS THE VALUE OF THE BRAND MR PIRKO SAYS COCACOLA DECLINES TO DISCUSS ITS EFFORTS BUT A COTERIE OF MANAGERS HAS BEEN ASSIGNED TO SET STRATEGY AGAINST PRIVATE LABELS BIGBRAND MAKERS THAT SHUN OUTRIGHT PRICE CUTS ARE EFFECTIVELY LOWERING PRICES THROUGH PROMOTIONS AND DISCOUNTS THIS YEAR KROGER CO A SUPERMARKET CHAIN IS NOTICING A SHIFT IN STRATEGY BY KELLOGG CO AND GENERAL MILLS INC IN THE PAST THE CEREAL GIANTS WERE BUSY BATTLING EACH OTHER ON EVERY BRAND SAYS A KROGER SPOKESMAN THEY'RE NOT DOING AN ACROSSTHEBOARD PROMOTION OF ALL CEREALS BUT THEY'RE TARGETING THOSE PRODUCTS WHERE PRIVATELABEL SHARE HAS INCREASED SUCH AS CORN FLAKES AND RAISIN BRAN THE SPOKESMAN SAYS AS A RESULT KROGER SHOPPERS ARE RECEIVING OFFERS FOR FREE MILK WITH THE PURCHASE OF THOSE TWO CEREALS BUT NOT OTHER LESSBASIC CEREALS SUCH AS KELLOGG'S APPLE RAISIN CRISPS GENERAL MILLS PLAYS DOWN THE IMPACT OF PRIVATE LABELS SAYING KELLOGG HAS BEEN HURT MORE SEVERELY KELLOGG HAS GOT TO BE WORRIED ABOUT IT AND FIGHTING HARD A GENERAL MILLS SPOKESMAN SAYS A KELLOGG SPOKESMAN DECLINES TO DISCUSS PRIVATELABEL COMPETITION OTHER BIG BRANDS ARE FOCUSING LESS ON REDUCING THE PRICE GAP THAN ON INCREASING THE QUALITY GAP BETWEEN THEM AND PRIVATELABEL KNOCKOFFS THAT'S ESPECIALLY CRUCIAL FOR CPC INTERNATIONAL INC A MAKER OF COOKING OILS AND ENGLISH MUFFINS CONSIDERING THAT BAKED GOODS AND COOKING OIL ARE TWO LARGE PRIVATELABEL CATEGORIES WE HAVE ACCELERATED THE PACE OF NEWPRODUCT INTRODUCTIONS WHICH PRIVATELABEL PRODUCTS CAN'T DO THEY SIMPLY CAN'T INNOVATE THE WAY MAJOR MANUFACTURERS CAN SAYS LAWRENCE HATHAWAY PRESIDENT OF CPC'S BEST FOODS GROCERY UNIT CPC RECENTLY INTRODUCED A NEW VARIETY OF ITS MAZOLA COOKING OIL A CORNANDCANOLA OIL MIX CALLED RIGHTBLEND AND A REDUCEDFAT HELLMANN'S MAYONNAISE ACCOMPANIED BY HEAVY ADVERTISING PITCHING IT AS HEALTHY AND GOOD TASTING SAYS MR HATHAWAY A NEW CPC LARGE SANDWICHSIZE THOMAS' ENGLISH MUFFIN TO ACCOMMODATE HAMBURGERS IS ALSO BEING INTRODUCED HELLMANN'S ADS DON'T EXPLICITLY SAY THE MAYONNAISE IS WORTH THE HIGHER PRICE BUT THAT'S THE IMPLICIT MESSAGE IN ITS LONGRUNNING SLOGAN BRING OUT THE HELLMANN'S AND BRING OUT THE BEST' SAYS MR HATHAWAY WHEN PEOPLE LOOK AT THE ADVERTISEMENTS WE'D HOPE THEY'D CONCLUDE THAT WE ARE THE BEST PRODUCT AND WORTH THE PREMIUM PRICE IRONICALLY ONE WAY FOR BIGBRAND MAKERS TO WIN IS TO MAKE PRIVATE LABELS THEMSELVES WHICH AN INCREASING NUMBER ARE DOING THE PRIVATE LABEL MANUFACTURERS ASSOCIATION NOTES THAT RALSTON PURINA CO MAKES PRIVATELABEL CEREAL WHILE BORDEN INC DOES THE SAME WITH DAIRY PRODUCTS AN INCREASINGLY COMMON TACTIC AND THE SMARTEST TACTIC IS TO BECOME A PRIVATELABEL SUPPLIER SAYS BRIAN SHAROFF PRESIDENT OF THE PRIVATE LABEL MANUFACTURERS ASSOCIATION SAYS A BORDEN SPOKESMAN IF WE DON'T PRODUCE IT FOR THE SUPERMARKET SOMEONE ELSE WILL AND WE MAY AS WELL GET THE PROFIT FROM IT THERE IS A PRECEDENT HOWEVER FOR A BIG BRAND RETAINING ITS ALLURE EVEN IN SOMETHING AS BASIC AS KETCHUP HJ HEINZ CO'S KETCHUP RETAINS SLIGHTLY MORE THAN A 50 MARKET SHARE IN A DECLINING KETCHUP SECTOR DESPITE COMPETITION FROM PRIVATE LABELS AS WELL AS FROM CONAGRA INC'S HUNTS ONE REASON IT HAS A DISTINCTIVE SLIGHTLY SWEET TASTE AND A LOYAL FOLLOWING ANOTHER REASON HEINZ HAS PRICED ITS KETCHUP COMPETITIVELY KEEPING AN EYE ON THE PRICE GAP BETWEEN IT AND PRIVATELABEL COMPETITORS TO MAKE SURE IT DOESN'T BECOME TOO MUCH A PREMIUMPRICED PRODUCT RETAILERS AND ANALYSTS SAY MOREOVER REGARDLESS OF ITS MARKET LEAD HEINZ HAS REMAINED ON THE OFFENSIVE IT CAME OUT WITH SQUEEZABLE BOTTLES INTRODUCED SALSA KETCHUP AND IS NOW BOOSTING ADVERTISING SPENDING TO CORNER THE SUMMER COOKOUT SEASON WITH ITS MUCHREMEMBERED ANTICIPATION ADVERTISING CAMPAIGN FEATURING THE 1970S HIT SONG 9304210103 930421 BUSINESS BRIEF DSC COMMUNICATIONS CORP FIRM POSTS QUARTERLY PROFIT AGAINST YEAREARLIER LOSS DSC COMMUNICATIONS CORP SAID IT HAD FIRSTQUARTER NET INCOME OF 114 MILLION OR 24 CENTS A SHARE COMPARED WITH A LOSS OF 105 MILLION OR 25 CENTS A SHARE IN THE YEAREARLIER PERIOD THE PLANO TEXAS TELECOMMUNICATIONS CONCERN ATTRIBUTED ITS BETTER RESULTS TO HIGHER SALES VOLUME IMPROVED MARGINS AND LOWER FINANCING COSTS THE RESULTS REFLECTED A 146 INCREASE IN AVERAGE SHARES OUTSTANDING TO 478 MILLION FROM 417 MILLION IN THE YEAREARLIER PERIOD REVENUE ROSE 52 TO 1562 MILLION FROM 1027 MILLION THE COMPANY SAID IT HAD EXPERIENCED STRONG DEMAND BY ALL OF ITS STRATEGIC PRODUCT GROUPS PARTICULARLY ACCESS SWITCHING AND TRANSMISSION 9304210102 930421 LETTERS TO THE EDITOR OLD SOLDIERS JUST SOLDIER ON THERE COULD BE NO BETTER WAY TO APPRECIATE THE TERM SOLDIERING ON THAN TO READ THE APRIL 6 LETTER TO THE EDITOR FROM LT GEN BARRY MCCAFFREY GOOD VIBES BETWEEN WHITE HOUSE MILITARY GEN MCCAFFREY WAS THE OFFICER WHO HAD THE EFFRONTERY TO SAY GOOD MORNING TO A STILLANONYMOUS FEMALE WHITE HOUSE FUNCTIONARY WHO SAID SHE DIDN'T TALK TO MILITARY PEOPLE THE GENERAL DEDICATED SOLDIER THAT HE IS WROTE YOUR PAPER AT SOME LENGTH TO ASSURE US THAT RELATIONS ARE JUST FINE BETWEEN THE PENTAGON AND THE CLINTON ADMINISTRATION AND TO ABJURE MOST EVERYTHING ABOUT THIS WRETCHED INCIDENT EXCEPT THAT IT OCCURRED I FOUND MYSELF IN THE UNACCUSTOMED POSITION OF AGREEING COMPLETELY WITH ROSS PEROT WHO HAD CALLED UPON THE PRESIDENT TO DISAVOW THIS INEXCUSABLE INSULT TO OUR MEN AND WOMEN IN UNIFORM AND TO DISMISS SUMMARILY THE AIDE WHO MADE IT MR CLINTON INSTEAD CHOSE THIS AS AN OCCASION TO GO ON THE OFFENSIVE AGAINST MR PEROT AND IN EFFECT TO CALL GEN MCCAFFREY A LIAR THIS SMALL EVENT SPEAKS LOUDLY TO LARGER THINGS MILITARY PERSONNEL NEED TO UNDERSTAND THIS IT'S CLEAR NOW THAT THEIR COMMANDER IN CHIEF NOTWITHSTANDING PHOTOOP VISITS TO AIRCRAFT CARRIERS WILL NEVER ALTER HIS 1960S MINDSET 9304210100 930421 INTERNATIONAL BRIEF MARUBENI CORP SPECIAL LOSS IS SET FOR YEAR ON COSTS OF RESTRUCTURING MARUBENI CORP A MAJOR JAPANESE TRADING COMPANY SAID IT WILL REPORT AN EXTRAORDINARY LOSS OF MORE THAN 40 BILLION YEN 3599 MILLION FOR THE YEAR ENDED MARCH 31 RELATED TO RESTRUCTURING COSTS AND LOSSES ON SECURITIES HOLDINGS THE COMPANY SAID IT HAS COVERED THE LOSS THROUGH SALES OF ITS REAL ESTATE AND SECURITIES HOLDINGS A COMPANY SPOKESMAN SAID MARUBENI ISN'T REVISING ITS NOVEMBER FORECAST THAT UNCONSOLIDATED PRETAX PROFIT FOR THE YEAR WOULD TOTAL 330 BILLION YEN 2969 MILLION DOWN 14 FROM A YEAR EARLIER THE COMPANY EXPECTS TO POST NET INCOME OF 15 BILLION YEN 140 MILLION ALSO DOWN 14 MARUBENI SAID SALES DROPPED 68 IN THE LATEST YEAR TO 17 TRILLION YEN 9304210099 930421 BUSINESS BRIEF UNION TEXAS PETROLEUM HOLDINGS INC CONCERN SEES GAIN THIS YEAR FROM BRITISH TAX PROPOSAL UNION TEXAS PETROLEUM HOLDINGS INC SAID PROPOSED CHANGES IN BRITISH OIL TAXES COULD LEAD IT TO POST A ONETIME GAIN OF 50 CENTS TO 60 CENTS A SHARE IN 1993 IN 1992 UNION TEXAS HAD NET INCOME OF 14 MILLION ON REVENUE OF 714 MILLION THE COMPANY HAD A PERSHARE LOSS OF 26 CENTS AFTER THE PAYMENT OF PREFERRED DIVIDENDS LAST MONTH THE BRITISH CHANCELLOR OF THE EXCHEQUER PROPOSED MAJOR TAX CHANGES THAT INCLUDE REDUCING TAXES ON PRODUCING OIL FIELDS IN THE NORTH SEA THE CHANGES HAVEN'T BEEN ADOPTED YET BUT IF THEY ARE UNION TEXAS SAID IN HOUSTON THAT IT EXPECTS THEY WOULD REDUCE THE COMPANY'S LIABILITY FOR DEFERRED INCOME TAXES RESULTING IN A ONETIME GAIN 9304210098 930421 EXECUTIVE PAY A SPECIAL REPORT BUY OR BYE MORE COMPANIES FORCE TOP EXECUTIVES TO PURCHASE LARGE AMOUNTS OF COMPANY STOCK BY JOANN S LUBLIN EARLIER THIS YEAR EASTMAN KODAK CO TOLD 40 TOP MANAGERS HOW THEY HAD TO SPEND THEIR OWN MONEY BUY LARGE AMOUNTS OF KODAK STOCK THE NEXT DAY KURT STOCKER CHIEF CORPORATERELATIONS OFFICER AT CONTINENTAL BANK CORP IN CHICAGO SENT A FAX TO AN ACQUAINTANCE AT KODAK IN ROCHESTER NY WELCOME TO THE CLUB WROTE MR STOCKER WHO UNDER CONTINENTAL'S RULES MUST OWN 10000 CONTINENTAL SHARES THE DUES ARE VERY HIGH THE CLUB IS SIGNING UP PLENTY OF NEW MEMBERS THESE DAYS AS MORE US CORPORATIONS TRY TO GET THEIR EXECUTIVES TO THINK LIKE OWNERS RATHER THAN AS HIRED HELP KODAK AND CONTINENTAL ARE JUST TWO OF MANY COMPANIES THAT HAVE SET UP MANDATORY OR VOLUNTARY GUIDELINES FOR STOCK OWNERSHIP SINCE 1991 AMONG THE OTHERS INTERNATIONAL MULTIFOODS CORP XEROX CORP AMERICAN STORES CO CSX CORP GERBER PRODUCTS CO UNION CARBIDE CO HOUSEHOLD INTERNATIONAL INC AND HERSHEY FOODS CORP TYPICALLY THE GUIDELINES REQUIRE OR STRONGLY ENCOURAGE CHIEF EXECUTIVES AND OTHER SENIOR MANAGERS TO INVEST BETWEEN ONE AND 10 TIMES THEIR ANNUAL SALARIES IN STOCK EXECUTIVES GET UP TO EIGHT YEARS TO REACH THE OWNERSHIP TARGETS TO PROMOTE COMPLIANCE SOME COMPANIES LINK THE OWNERSHIP GOALS TO FUTURE AWARDS OF STOCK AND STOCK OPTIONS OR OFFER LOANS FOR STOCK PURCHASES THAT CAN BE FORGIVEN IF CERTAIN TOUGH TARGETS ARE MET AT HOUSEHOLD INTERNATIONAL IN PROSPECT HEIGHTS ILL FOR EXAMPLE THE 100 TOP MANAGERS MUST ACQUIRE 60 MILLION OF STOCK BY JANUARY 1999 MEETING INTERIM TARGETS ALONG THE WAY EXECUTIVES MISSING AN ANNUAL TARGET RECEIVE HALF OF THEIR USUAL CASH BONUS IN SHARES CHRYSLER CORP WITHOUT USING ANY CARROTS OR STICKS SAYS THAT ITS 24 TOP OFFICERS ALREADY HAVE MET A VOLUNTARY STOCKOWNERSHIP TARGET SET IN 1990 EACH HAS AMASSED THE EQUIVALENT OF AT LEAST A YEAR'S SALARY IN SHARES THE PROGRAM HAS WORKED WELL HELPING CHRYSLER CUT MORE THAN 3 BILLION OF COSTS SINCE 1990 SAYS GARY VALADE THE BIG AUTO MAKER'S VICE PRESIDENT FOR CORPORATE PERSONNEL THERE IS A DIFFERENCE IN HOW YOU LOOK AT COSTS WHEN MUCH OF YOUR NET WORTH IS TIED UP IN YOUR EMPLOYER'S STOCK MR VALADE SAYS CHRYSLER NOW IS EXPANDING ITS GUIDELINES BY URGING 85 OTHER SENIOR MANAGERS TO OWN AT LEAST 3000 SHARES APIECE BY 1996 UNDER PRESSURE FROM POWERFUL INSTITUTIONAL INVESTORS OUTRIGHT STOCKOWNERSHIP MANDATES PROBABLY WILL SPREAD FURTHER IN 1992 43 OF US BUSINESSES AND NEARLY 10 OF THOSE WITH SALES EXCEEDING 5 BILLION REQUIRED SENIOR EXECUTIVES TO HOLD STOCK ACCORDING TO A SURVEY OF 1400 COMPANIES BY COMPENSATION CONSULTANTS WILLIAM M MERCER INC IN NEW YORK IN FIVE YEARS THE FIGURE FOR THE BIGGEST CONCERNS MAY REACH 50 PREDICTS BRAM GROEN A MERCER PRINCIPAL IN THE FIRM'S WASHINGTON DC OFFICE MR GROEN NOTICES A RAPID INCREASE IN THE NUMBER OF CHIEF EXECUTIVES SAYING I EXPECT MY SENIORMANAGEMENT TEAM TO OWN A CERTAIN AMOUNT OF STOCK AND I'M GOING TO BE ADAMANT ABOUT THAT' ABOUT 52 OF CHIEF EXECUTIVES OF 561 MAJOR COMPANIES BELIEVE EXECUTIVES SHOULD BE FORCED TO OWN SIGNIFICANT AMOUNTS OF STOCK CONCLUDED A RECENT POLL BY CONSULTANTS COOPERS & LYBRAND IN NEW YORK YET AMERICAN MANAGEMENT'S STOCKHOLDINGS HAVE LONG REMAINED MINUSCULE EXPERTS SAY PARTLY BECAUSE BUSINESSES HESITATED TO INVADE THE PRIVACY OF EMPLOYEES' WALLETS THE RISE OF STOCKOWNERSHIP GUIDELINES IS A MASSIVE CHANGE IN CORPORATE AMERICA'S VIEW OF EXECUTIVE PAY SAYS PAULA TODD A PRINCIPAL AT CONSULTANTS TOWERS PERRIN IT USED TO BE A GODGIVEN RIGHT TO INVEST YOUR MONEY AS YOU WANTED TO IF YOU WERE AN EXECUTIVE SHE ADDS IT WAS NONE OF THE COMPANY'S BUSINESS THE GRANTING OF STOCK OPTIONS ONCE SEEN AS A WAY TO INCREASE STOCK OWNERSHIP AMONG EXECUTIVES HASN'T BEEN OF MUCH HELP THE PROBLEM MOST MANAGERS SELL THEIR STOCK A FEW YEARS AFTER EXERCISING THE OPTIONS STOCK OPTIONS HAVEN'T CREATED OWNERSHIP SAYS IRA KAY HEAD OF THE EXECUTIVECOMPENSATION PRACTICE AT CONSULTANTS HAY GROUP IN JERSEY CITY NJ MOST ANALYSTS AGREE HOWEVER THAT EXECUTIVE STOCK OWNERSHIP CAN GREATLY ENHANCE CORPORATE RESULTS FOR INSTANCE A RECENT HAY GROUP ANALYSIS OF FOUR INDUSTRIES FOUND THAT ON AVERAGE COMPANIES WITH STRONG STOCK PERFORMANCES ARE RUN BY CHIEF EXECUTIVES OWNING RELATIVELY LARGE AMOUNTS OF STOCK FOR A SHAREHOLDER I THINK MY CHANCES ARE BETTER WITH THEM OWNING CONSIDERABLE STOCK BECAUSE THEN YOUR LIFE IS IN FACT WRAPPED UP IN THE COMPANY SAYS SARAH TESLIK EXECUTIVE DIRECTOR OF THE COUNCIL OF INSTITUTIONAL INVESTORS A WASHINGTON DC GROUP THAT REPRESENTS MAINLY BIG PENSION FUNDS OTHER INVESTORS APPEAR TO SHARE HER VIEW AS SEEN IN THE GAINS IN KODAK'S SHARE PRICE AFTER THE COMPANY UNVEILED ITS STOCKOWNERSHIP REQUIREMENT IN JANUARY KODAK GAVE THE 40 MANAGERS FIVE YEARS TO INVEST BETWEEN ONE AND FOUR TIMES THEIR ANNUAL SALARIES IN STOCK DEPENDING ON THE EXECUTIVE'S JOB LEVEL WALL STREET LIKES THIS KIND OF PLAN SAYS GEORGE DAVIS DIRECTOR OF EXECUTIVE RESOURCES AT THE PHOTOGRAPHY CHEMICALS AND HEALTHCARE COMPANY THERE ARE A LOT OF KODAK PEOPLE WHO ARE GOING TO SUFFER IF THEY CAN'T MAINTAIN THE REVIVED SHARE PRICE BY IMPROVING PROFITS WALL STREET MAY BE PLEASED BUT MANY EXECUTIVES RECOIL AT THE IDEA OF SHELLING OUT BIG SUMS TO CREATE A RISKY UNDIVERSIFIED PORTFOLIO WE GOT SOME PUSH BACK FROM EXECUTIVES OVER THIS ISSUE SAYS KODAK'S MR DAVIS WE ARE TELLING THEM ONLY PARTLY LISTEN TO YOUR FINANCIAL PLANNERS' BECAUSE THE STOCKOWNERSHIP RULE IS A CONDITION OF EMPLOYMENT YOU ARE FREE NOT TO DO IT AND WORK SOMEPLACE ELSE CONTINENTAL BANK CORP'S EXPERIENCE SHEDS LIGHT ON THE PLUSES AND MINUSES OF REQUIRING EXECUTIVE STOCK OWNERSHIP IN THE FALL OF 1991 THE MAJOR CHICAGO BANK GAVE NINE OF ITS 11 HIGHESTRANKING EXECUTIVES ONLY NINE MONTHS TO ACQUIRE 10000 SHARES APIECE THE EQUIVALENT OF ROUGHLY ONE YEAR'S SALARY FOR THE EXECUTIVES THE VICE CHAIRMAN AT THE TIME WAS GIVEN THE SAME AMOUNT OF TIME TO BUY SHARES EQUIVALENT TO 1 1/2 TIMES HIS SALARY AND UNDER THE PLAN THOMAS THEOBALD CONTINENTAL'S 55YEAROLD CHAIRMAN HAD TO OWN STOCK EQUAL TO TWO TIMES HIS ANNUAL SALARY LAST FALL THE BANK ORDERED ANOTHER 13 SENIOR MANAGERS WITH LOWER SIXFIGURE SALARIES TO OWN 8000 SHARES APIECE BY JUNE 30 MOST COMPANIES OFFER EXECUTIVES A LOT MORE TIME TO ACHIEVE STOCKOWNERSHIP TARGETS PAY CONSULTANTS SAY MR THEOBALD CHOSE A SHORT TIMETABLE BECAUSE HE AND TWO OTHER OFFICERS ALREADY OWNED ENOUGH SHARES TO COMPLY THE REMAINING EIGHT EXECUTIVES OWNED SMALLER AMOUNTS OF STOCK IT WAS ALMOST A SENSE OF COMMUNAL JUSTICE MR THEOBALD RECALLS IF I'M GOING TO RISK MY MONEY YOU SHOULD RISK YOUR MONEY TOO IN 1991 MR THEOBALD OWNED 90000 SHARES THOUGH 50000 SHARES WOULD HAVE MET THE REQUIRED HOLDING OF TWO TIMES HIS ANNUAL SALARY OF 583333 HE SAYS HE SUBSEQUENTLY TOOK A NEW MORTGAGE ON HIS PAID FOR CHICAGO HOME AND RAISED HIS STAKE TO 188627 SHARES SOME COLLEAGUES DIPPED EVEN DEEPER INTO THEIR WALLETS MR STOCKER BORROWED NEARLY 100000 FOR A PORTION OF HIS REQUIRED SHARE PURCHASES THOUGH HE HAS SINCE REPAID ALL BUT 30000 OF THAT DEBT I WOULD HAVE BEEN ANNOYED IF I HADN'T BEEN ASKED TO JOIN THE ELITE GROUP OF 11 MR STOCKER NOTES YET IT WAS PAINFUL THE STOCKOWNERSHIP MANDATE CAME AFTER CONTINENTAL HAD SPENT SEVERAL YEARS REVAMPING ITS PAY PRACTICES AND SHRINKING ITS SIZE AND FOCUS IN THE WAKE OF A 1984 BAILOUT BY FEDERAL BANKING REGULATORS IN 1988 FOR INSTANCE THE BANK CREATED AN EMPLOYEE STOCKOWNERSHIP PROGRAM COVERING ALL US EMPLOYEES EXCEPT THE TOP 11 OFFICERS THE NEXT YEAR CONTINENTAL BEGAN PAYING A PORTION OF ITS BIGGEST EXECUTIVE BONUSES IN RESTRICTED STOCK RATHER THAN CASH RESTRICTED STOCK ARE SHARES GRANTED FREE OR AT A BARGAIN PRICE AND THAT CAN'T BE SOLD FOR A SPECIFIED PERIOD MR THEOBALD SAYS HE HOPED THE STOCKOWNERSHIP REQUIREMENT WOULD MAKE SENIOR OFFICIALS BEHAVE MORE LIKE ENTREPRENEURIAL OWNERS OF PRIVATE COMPANIES WHICH REPRESENT TWOTHIRDS OF THE BUSINESS BANK'S CUSTOMERS THE NOTION THAT YOU PUT UP ONE OR TWO YEARS' COMPENSATION IS A PRETTY CLEAR COMMITMENT HE EXPLAINS AT LAST WE HAVE A PERSPECTIVE AS LONG AS OUR INVESTORS MR THEOBALD LIKES THE RESULTS SO FAR THERE'S A FUNDAMENTAL DEEPER SENSE OF TRUST AMONG THE SENIOR TEAM PLAYERS THAT THEY'RE IN THIS TOGETHER HE NOTES SWEEPING A PALM ACROSS HIS BLACK SEMICIRCULAR MARBLE DESK THAT'S SUBTLE BUT IMPORTANT WITHIN CONTINENTAL'S EXECUTIVE SUITE THERE DOES SEEM TO BE GREATER VIGILANCE ABOUT COSTS AND LESS INFIGHTING ABOUT SHARING RESOURCES AFFECTED EXECUTIVES NOW WORRY ABOUT CORPORATE SPENDING THE WAY I WORRY ABOUT IT BECAUSE THEY ARE USING THEIR HARDEARNED MONEY TO BUY SHARES SAYS GORDON SEGAL A CONTINENTAL OUTSIDE DIRECTOR AND PRESIDENT OF CRATE & BARREL A FAMILYOWNED HOUSEWARES RETAILER IN CHICAGO WHEN YOU HAVE ALL OF YOUR EGGS IN ONE BASKET HE ADDS YOU WATCH THEM VERY CAREFULLY JOSEPH V THOMPSON THE BANK'S CHIEF HUMANRESOURCES OFFICER TAPPED SAVINGS AND SOLD STOCK TO BUY THE 3500 CONTINENTAL SHARES NEEDED TO FUFILL HIS 10000SHARE REQUIREMENT HE HAD ACQUIRED THE REST THROUGH BONUSES AND A COMPANYSPONSORED SAVINGS PLAN THE 60000 SHARE PURCHASE AFFECTS ME EVERY DAY WHETHER I'M BUYING PENCILS OR PUTTING IN MERIT PAY BUDGETS THE 50YEAROLD EXECUTIVE OBSERVES I KNOW I LOOK AT MY JOB DIFFERENTLY BECAUSE IT FEELS LIKE MY MONEY THAT I'M SPENDING MICHAEL E O'NEILL WHO COORDINATES A CORPORATE COSTCUTTING PROJECT AS MR THEOBALD'S CHIEF OF STAFF FINDS THAT THE SHAREOWNERSHIP RULE MAKES HIS ROLE LESS DISTASTEFUL BECAUSE MY MONEY IS AT RISK THE BANK HAS ELIMINATED 900 BANK JOBS SINCE 1990 BY CONTRACTING OUT EVERYTHING FROM FOOD SERVICES TO ITS INTERNAL AUDIT FUNCTION IN EVERY CASE WE HAVE SAVED MONEY AND I BELIEVE HAVE IMPROVED THE LEVEL OF SERVICE MR O'NEILL SAYS BUT IT'S TOUGH TO TELL COLLEAGUES YOU DON'T NEED 20 PEOPLE YOU CAN GET ALONG WITH JUST FOUR HE ADMITS WOULD I HAVE DONE THE JOB CUTS ANYWAY MAYBE BUT NOT AS EASILY WITHOUT THE STOCKOWNERSHIP MANDATE MR O'NEILL WHO HAS WORKED FOR CONTINENTAL ON AND OFF SINCE 1974 SEES ANOTHER BENEFIT FROM THE STOCK REQUIREMENT FEWER TURF BATTLES THE BANK ONCE TEEMED WITH FIEFDOMS AND PRIVATE STAFFS HE RECOLLECTS THERE WAS COMPETITION AT EVERY LEVEL OF THE FIEFS THAT'S LARGELY GONE MICHAEL J MURRAY A VICE CHAIRMAN AND HEAD OF CORPORATE BANKING OPERATIONS AGREES IN THE PAST HE SAYS THE GAME WAS WHAT IS MINE IS MINE WHAT IS YOURS IS NEGOTIABLE HE REMEMBERS HOW EXECUTIVES OFTEN REFUSED TO LET THEIR STAR PERFORMERS TRANSFER ELSEWHERE WITHIN THE BANK AS A RESULT SOME FRUSTRATED STARS QUIT SHE NOW VIEWS THE EMPLOYEE'S DEPARTURE DIFFERENTLY IN PART BECAUSE SHE ACQUIRED SEVERAL THOUSAND SHARES LAST FALL TO MEET HER 8000SHARE REQUIREMENT HALF OF MY NET WORTH IS TIED UP HERE IN CONTINENTAL BANK NOTES MS SMELCER A 20YEAR VETERAN AND THE BANK'S HIGHESTRANKING WOMAN WE DON'T LIKE LOSING THIS PERSON SHE SAYS BUT I THINK IT'S VERY IMPORTANT FOR THE COMPANY THAT HE GO LUCKILY FOR MS SMELCER CONTINENTAL'S SHARE PRICE HAS CLIMBED LATELY MY NET WORTH HAS DOUBLED IN THE PAST YEAR BECAUSE OF MY INVESTMENT IN CONTINENTAL BANK STOCK SHE BRAGS BUT WHAT HAPPENS TO HER AND THE 23 OTHER EXECUTIVES IF CONTINENTAL'S SHARE PRICE NOSEDIVES SEVERAL OF THOSE GUYS WILL GO BANKRUPT AND THEIR MORALE WILL SUFFER BADLY WARNS ALAN JOHNSON MANAGING DIRECTOR OF JOHNSON ASSOCIATES INC A COMPENSATIONCONSULTING FIRM IN NEW YORK EXECUTIVES UNDERSTAND THE RISK RETORTS MR THEOBALD WHEN THE SHARE PRICE TURNS SOUTH THE CONTINENTAL CHAIRMAN SAYS THEY WON'T LIKE IT ANY MORE THAN ANYBODY ELSE A STOCK PRICE'S PROTRACTED DOWNTURN SOMETIMES PROMPTS BUSINESSES TO EASE SHAREOWNERSHIP PROGRAMS HOWEVER THAT'S WHAT HAPPENED AT A GROUP OF COMPANIES CONTROLLED BY TORONTO FINANCIERS PETER AND EDWARD BRONFMAN THAT HAS LONG ENCOURAGED STOCK OWNERSHIP BY OFFERING EXECUTIVES CHEAP LOANS TO BUY STOCK FOR EXAMPLE AT ONE OF THOSE COMPANIES HEES INTERNATIONAL BANCORP INC IN TORONTO THE VALUE OF SHARES SOLD TO JUNIOR EXECUTIVES REPRESENTED AS MUCH AS 60 OF THEIR TOTAL COMPENSATION BUT AS HEES'S SHARE PRICE STEADILY DECLINED OVER THE PAST YEAR THE VALUE OF SOME OFFICERS' LOANS EXCEEDED THE VALUE OF THEIR SHARES PERHAPS WE HAD GONE TOO FAR IN ONE DIRECTION CONCEDES ROBERT HARDING HEES'S CHIEF OPERATING OFFICER THE BOARD OF THE MERCHANT BANK AND HOLDING COMPANY IS EXTENDING THE FIVEYEAR LOANS TO 10 YEARS AND SPLITTING JUNIOR EXECUTIVES' COMPENSATION MORE EVENLY BETWEEN STOCK AND CASH MR HARDING SAYS HEES WILL STILL MAKE SHAREPURCHASE LOANS HE NOTES BUT THE PURPOSE IS NOT TO CREATE FINANCIAL HARDSHIP FOR CONTINENTAL A BIGGER RISK IS WHETHER IT CAN CONTINUE TO RECRUIT TOP MANAGERIAL TALENT WHEN FEW RIVALS REQUIRE STOCK OWNERSHIP THE BANK ALREADY BENDS ITS RULES AT TIMES AN EXECUTIVE HIRED LAST SUMMER TO DIRECT CONTINENTAL'S RISKMANAGEMENT BUSINESS WORRIED THAT HE COULDN'T ACQUIRE 8000 SHARES BY JUNE 30 RICHARD HUBER A VICE CHAIRMAN SAYS HE TOLD HIM THAT HE COULD HAVE ANOTHER YEAR TO COMPLY THAT MAY NOT BE NECESSARY KENNETH CUNNINGHAM THE NEW HIRE SAYS HE ALREADY HAS BOUGHT ABOUT TWOTHIRDS OF THE REQUIRED STAKE BUT OTHER PROMISING CANDIDATES AREN'T GOING TO WANT TO TAKE THOSE RISKS AT ALL BECAUSE THEY DISLIKE HAVING A LARGE CHUNK OF THEIR WEALTH IN ONE STOCK SUGGESTS MYRON SCHOLES FINANCE PROFESSOR AT STANFORD UNIVERSITY'S BUSINESS SCHOOL CONTINENTAL WILL HAVE TO PAY THEM MORE TO GET THEM TO COME OR THEY WON'T ATTRACT THEM TYING MANAGEMENT'S INTERESTS CLOSER TO SHAREHOLDERS' DOESN'T COME FOR FREE PROF SCHOLES CONTENDS IF IT CAME FOR FREE WE WOULD ALL DO IT MR THEOBALD DISAGREES IF NEWCOMERS ARE NOT WILLING TO PUT THEIR MONEY ON THE LINE HE INSISTS THEN I DON'T WANT THEM STANDING NEXT TO ME ON THE FIRING LINE MS LUBLIN IS DEPUTY MANAGEMENT EDITOR IN THE WALL STREET JOURNAL'S NEW YORK BUREAU MORE COMPANIES ARE FORCING OR STRONGLY ENCOURAGING THEIR TOP EXECUTIVES TO OWN STOCK IN THEIR COMPANIES IN 1992 43 OF THE US BUSINESSES REQUIRED STOCK OWNERSHIP BY SENIOR EXECUTIVES AND 377 ENCOURAGED IT ACCORDING TO A SURVEY OF 1400 COMPANIES BY COMPENSATION CONSULTANTS WILLIAM M MERCER INC HERE'S A BREAKDOWN BY COMPANY SIZE 9304210096 930421 LETTERS TO THE EDITOR FEAR AND LOATHING AS CORPORATE STRATEGY YOUR MARCH 23 PAGEONE ARTICLE HOW TO GET AHEAD AS A MIDDLE MANAGER BY BEING RUTHLESS LENDS UNDESERVED CREDIBILITY TO A MANAGEMENT STYLE THAT IS KILLING US COMPETITIVENESS NO WONDER TRUST AND MORALE ARE SO LOW IN MANY ORGANIZATIONS AMERICAN WORKERS REPEATEDLY REPORT MERE LIP SERVICE TO THE PRINCIPLES OF PARTICIPATION ADULT TREATMENT FAIR DEALING INTEGRITY EMPOWERMENT AND QUALITY THEIR BOSSES ARE NO DOUBT SUBSCRIBERS TO THE EXECUTIVE STRATEGIES NEWSLETTER FEAR AND INTIMIDATION ARE NOT EFFECTIVE TOOLS FOR LONGTERM MANAGEMENT SUCCESS AND EXECUTIVE STRATEGIES' ADVICE WILL DO MORE TO HARM THAN HELP A MIDDLE MANAGER'S CAREER THE MOST EFFECTIVE LEADERS CREATE ENVIRONMENTS IN WHICH EMPLOYEES CAN DO THEIR BEST SUPPLIERS SEE THEMSELVES AS PARTNERS AND NO ONE QUESTIONS THE INTEGRITY OF THEIR MOTIVES OR ACTIONS INVADING PRIVACY THROWING SUDDEN TANTRUMS AND INSTIGATING DIRTY TRICKS EVENTUALLY WILL LEAD TO SELFDESTRUCTION WHEN IT COMES TO BEING A JERK AT WORK ONE SHOULD ALWAYS REMEMBER THAT TIME WOUNDS ALL HEELS THE WRITER IS COAUTHOR OF ON MY HONOR I WILL HOW ONE SIMPLE OATH CAN LEAD YOU TO SUCCESS IN BUSINESS WARNER BOOKS 1992 9304210094 930421 RULE OF LAW WHAT'S WRONG WITH HATECRIME LAWS BY MICHAEL S GREVE THE SUPREME COURT IS SCHEDULED TO HEAR ORAL ARGUMENTS TODAY IN WISCONSIN V MITCHELL A CONTROVERSIAL CRIMINAL CASE AT FIRST GLANCE THE ALIGNMENT OF INTEREST GROUPS IN THIS CASE MAY COME AS A PLEASANT SURPRISE THE ACLU THE NAACP AND THE LAWYERS' COMMITTEE FOR CIVIL RIGHTS UNDER THE LAW GROUPS USUALLY CONSIDERED SOFT ON CRIME HAVE LINED UP IN DEFENSE OF A TOUGH CRIMINAL STATUTE A CLOSER LOOK REVEALS NOT A NEWFOUND COMMITMENT TO COMBATING VIOLENT CRIME BUT RATHER FURTHER EVIDENCE OF THESE GROUPS' SKEWED PERSPECTIVE ON CRIMINAL LAW THE LAW AT ISSUE IS A HATECRIME STATUTE IN WISCONSIN THAT IMPOSES EXTRA PENALTIES FOR CRIMES MOTIVATED BY BIGOTRY THE CASE INVOLVES THE BRUTAL BEATING OF 14YEAROLD GREGORY REDDICK IN 1989 THE DEFENDANT TODD MITCHELL IS BLACK HIS VICTIM WHITE AFTER A VIEWING OF THE MOVIE MISSISSIPPI BURNING MITCHELL ASKED SOME FRIENDS WHETHER THEY FELT HYPED UP TO MOVE ON SOME WHITE PEOPLE POINTING TO GREGORY ON THE OTHER SIDE OF THE STREET MITCHELL URGED THERE GOES A WHITE BOY GO GET HIM HIS FRIENDS THEN SAVAGELY BEAT GREGORY PUTTING HIM IN A COMA FOR FOUR DAYS AND LEAVING HIM WITH POSSIBLE BRAIN DAMAGE HAVING THUS AVENGED THE INDIGNITIES PORTRAYED IN THE MOVIE THEY STOLE HIS SNEAKERS MITCHELL RECEIVED TWO YEARS IN PRISON FOR AGGRAVATED BATTERY UNDER THE HATECRIME STATUTE HIS SENTENCE WAS LENGTHENED BY ANOTHER TWO YEARS LAST YEAR THE WISCONSIN SUPREME COURT DECLARED THE EXTRA PENALTY UNCONSTITUTIONAL FINDING THAT THE HATECRIME STATUTE PUNISHED THOUGHT AND SPEECH RATHER THAN CRIMINAL ACTS IT CITED A SUPREME COURT RULING LAST YEAR THAT STRUCK DOWN A ST PAUL MINN ORDINANCE MAKING IT A CRIME TO DISPLAY SUCH SYMBOLS AS SWASTIKAS OR BURNING CROSSES THE SUPREME COURT RULED UNANIMOUSLY THAT THE LAW VIOLATED THE FIRST AMENDMENT GUARANTEE OF FREE SPEECH UNLIKE THE WISCONSIN LAW THE ST PAUL ORDINANCE CREATED A SEPARATE BIASMOTIVATED CRIME THE STAKES ARE CONSIDERABLE HATECRIME LAWS ARE ON THE BOOKS IN 46 STATES AND CONGRESS IS CONSIDERING A SIMILAR LAW FOR ALL THEIR POLITICAL POPULARITY THOUGH HATECRIME LAWS DO POSE SERIOUS FIRST AMENDMENT PROBLEMS OF THE SORT THAT ORDINARILY TROUBLE CIVIL LIBERTARIANS AS THE WISCONSIN SUPREME COURT RECOGNIZED THE LAWS PUNISH NOT CRIME BUT THE THOUGHT OR IDEOLOGY THAT ACCOMPANIES IT HIGHER PENALTIES FOR CRIMES COMMITTED BECAUSE OF OPPOSITION TO PRESIDENT CLINTON'S ECONOMIC POLICIES WOULD OBVIOUSLY BE PROBLEMATIC HIGHER PENALTIES FOR BIGOTRY ARE NO DIFFERENT IN PRINCIPLE PROPONENTS CONTEND THAT HATECRIME LAWS ARE TARGETED NOT AT BIGOTRY PER SE BUT AT A PARTICULARLY DANGEROUS AND REPREHENSIBLE TYPE OF CRIMINAL CONDUCT BUT THEY OFFER THIS ARGUMENT WITH LITTLE CONVICTION AND EVEN LESS PLAUSIBILITY THE STATUTORY LANGUAGE SQUARELY AIMS AT BELIEFS OR PERCEPTIONS THE HIGHER PENALTIES APPLY REGARDLESS OF THE NATURE AND EFFECTS OF THE CRIME THEY APPLY EVEN TO SUCH MINOR OFFENSES AS DOGNAPPING THE LEGISLATORS WHO SPONSOR HATECRIME LEGISLATION DO NOT CONCEAL THAT THEIR TARGET IS BIGOTRY AND NOT MERELY THE VIOLENCE THAT MAY ACCOMPANY IT FOR EXAMPLE REP CHARLES SCHUMER D NY IN INTRODUCING THE HATE CRIMES SENTENCING ACT IN CONGRESS SAID THAT THE BIGOTS SHOULD BE PUT ON NOTICE THAT THE REST OF US MAY BE TOLERANT BUT WE WON'T TOLERATE THEM OR THEIR ACTIONS THE IMPULSE TO PASS SUCH LAWS IS UNDERSTANDABLE IN THE WAKE OF SUCH TERRIBLE INCIDENTS OF RACIAL VIOLENCE AS BENSONHURST AND HOWARD BEACH BUT THE POPULARITY OF HATECRIME LAWS DOES NOT STEM PRIMARILY FROM AN ALLEGED FLOOD OF BIAS CRIMES OF WHICH THERE IS LITTLE HARD EVIDENCE AND WHICH IN ANY EVENT PALES AGAINST THE TIDAL WAVE OF VIOLENT CRIME THAT HAS SWEPT ACROSS THIS COUNTRY FOR TWO DECADES HATECRIME LAWS ARE PUSHED BY A COALITION OF INTEREST GROUPS AND CONSTITUENCIES DEFINED BY RACE AND SEX THE PROTECTION SUCH LAWS EXTEND IS A GROUP ENTITLEMENT THE WISCONSIN LAW WHICH IS TYPICAL APPLIES IF THE CRIMINAL INTENTIONALLY SELECTED HIS VICTIM BECAUSE OF HIS BELIEFS OR PERCEPTIONS ABOUT THE VICTIM'S RACE RELIGION COLOR DISABILITY SEXUAL ORIENTATION NATIONAL ORIGIN OR ANCESTRY THE IMPLICIT MESSAGE IS THAT BIGOTRY IS THE MOST HEINOUS OF CRIMES FOR TODD MITCHELL AND HIS FRIENDS THE CLUBBING OF A DEFENSELESS TEENAGER WAS A FORM OF EVENING ENTERTAINMENT IN LESS JADED TIMES WE WOULD DEMAND THAT MITCHELL BE SEVERELY PUNISHED FOR HIS SHEER DEPRAVITY AND HIS LACK OF REMORSE BUT IT WAS NOT FOR HIS DEPRAVITY THAT TODD MITCHELL RECEIVED THE TOUGHER SENTENCE IT WAS BECAUSE HE IS A BIGOT IN EFFECT THE WISCONSIN LAW AFFIRMS THAT MITCHELL'S CONDUCT WOULD HAVE BEEN LESS HORRIFYING HAD HE BEATEN UP A BLACK YOUNGSTER AS WELL AS A WHITE YOUNGSTER THEREBY ENSURING RACIAL SYMMETRY THIS NOTION OF BIGOTRY AS THE ONLY CRIME WORTH FIGHTING WITH RESOLVE ACCOUNTS FOR THE ACLU'S BRIEF IN WISCONSIN V MITCHELL ITS ARGUMENT CASTS ASIDE SOME OF THE ORGANIZATION'S MOST CHERISHED DOCTRINES THE ACLU ACKNOWLEDGES THAT HATECRIME PROSECUTIONS MAY REQUIRE PROBING EXAMINATIONS OF A DEFENDANT'S PERSONAL LIFE INCLUDING HIS READING HABITS THE PEOPLE HE ASSOCIATES WITH AND THE LANGUAGE HE USES IN PRIVATE CONVERSATIONS IT ALSO WORRIES THAT HATECRIME STATUTES MIGHT BE USED MORE OFTEN AGAINST BLACKS THAN AGAINST WHITES THESE CONCERNS WOULD ORDINARILY PROMPT THE ACLU'S RESOLUTE OPPOSITION TO JUST ABOUT ANY CRIMINAL STATUTE THEY ARE HOWEVER SOMEHOW SET ASIDE WHEN IT COMES TO THE CRIME OF BIGOTRY THIS INVERSION OF PRIORITIES IS ALL TOO CHARACTERISTIC OF MODERN PUBLIC POLICY GOVERNMENT TELLS PUBLIC HOUSING RESIDENTS THAT BILLIONS OF DOLLARS WOULD BEST BE SPENT ON LEAD PAINT REMOVAL MEANWHILE THE INTENDED BENEFICIARIES CONTINUE TO WORRY MORE ABOUT LEAD THAT COMES OUT OF GUNS PUBLIC SCHOOLS TEACH THE THREE R'S THE EDUCATIONAL ESTABLISHMENT CONSIDERS WORTH KNOWING RACISM REPRODUCTION AND RECYCLING MEANWHILE THEY CONTINUE TO TURN OUT ILLITERATE STUDENTS IN THE SAME SPIRIT HATECRIME LAWS MOBILIZE THE CRIMINALJUSTICE SYSTEM TO ROOT OUT BIGOTRY WHEREVER IT MAY REAR ITS UGLY HEAD NEVER MIND THAT THE CRIMINALJUSTICE SYSTEM IS NO LONGER FULFILLING THE GOVERNMENT'S MOST BASIC RESPONSIBILITY OF ENSURING THE CITIZENRY'S PHYSICAL SAFETY TODD MITCHELL WOULD HAVE ESCAPED THE LONGER SENTENCE IF HE AND HIS FRIENDS HAD BEATEN A BLACK GRANDMOTHER HALF TO DEATH IN THIS SINGLE FACT LIES THE MESSAGE OF HATECRIME LAWS TO THOSE MOST IN NEED OF PROTECTION THE VICTIMS OF VIOLENCE IN THE INNER CITIES THEY CAN REST ASSURED THAT BIGOTRY WILL NOT BE TOLERATED AS FOR THEIR PHYSICAL SAFETY THEY'RE ON THEIR OWN MR GREVE IS EXECUTIVE DIRECTOR OF THE CENTER FOR INDIVIDUAL RIGHTS A PUBLIC INTEREST LAW FIRM IN WASHINGTON 9304210093 930421 ECONOMY SEVERAL BIG BANKS POST STRONG EARNINGS FOR 1ST QUARTER BUT STOCK PRICES DECLINE BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NATION'S BIGGEST BANKS POSTED STRONGER THAN EXPECTED FIRSTQUARTER EARNINGS FUELED BY A SHARP DROP IN PROBLEM LOANS AND BIG GAINS IN SECURITIES ACTIVITIES BUT SHARES OF BANKS TUMBLED ON CONCERNS THAT BANK PROFITS MAY BE PEAKING AND REVENUE GROWTH WILL REMAIN WEAK CITICORP'S NET INCOME MORE THAN TRIPLED DUE TO A 300 MILLION ACCOUNTING CHANGE WHILE OPERATING INCOME DOUBLED TO 370 MILLION CHEMICAL BANKING CORP REPORTED EARNINGS UP 44 DUE TO ACCOUNTING SHIFTS WHILE OPERATING PROFIT ROSE 30 TO 339 MILLION BANKERS TRUST NEW YORK CORP REPORTED NET INCOME FELL 74 DUE TO ONETIME ADJUSTMENTS BUT OPERATING RESULTS JUMPED 49 TO 230 MILLION ITS SECONDBEST QUARTER EVER AMONG LARGE REGIONAL BANKS WELLS FARGO & CO EARNINGS SLID 92 TO 108 MILLION FIRST INTERSTATE BANCORP'S NET QUADRUPLED DUE TO NONRECURRING ITEMS BUT OPERATING RESULTS JUMPED 97 TO 1195 MILLION MELLON BANK CORP'S NET INCOME SLID 44 HURT BY ONETIME ACQUISITION COSTS BUT OPERATING EARNINGS ROSE 52 TO 93 MILLION BANC ONE CORP REPORTED A 59 JUMP IN EARNINGS HELPED BY ACCOUNTING CHANGES WHILE OPERATING PROFIT ROSE 49 MOST OF THE EARNINGS ESTIMATES CAME IN BETTER THAN WALL STREET WAS EXPECTING THANKS TO A SHARP DECLINE IN THE COST OF CARRYING BAD DEBTS WHILE PROFIT MARGINS BETWEEN BORROWING AND LENDING CONTINUE TO REMAIN WIDE CITICORP BANKERS TRUST AND CHEMICAL HAD A SUPERB QUARTER TRADING SECURITIES AND CURRENCIES BUT SHARES OF MANY BANK STOCKS SKIDDED SHARPLY YESTERDAY AS INVESTORS GREW FEARFUL THAT BANK EARNINGS CAN'T GET ANY BETTER MOREOVER WITH LOAN DEMAND STILL WEAK SOME ON WALL STREET ARE CONCERNED ABOUT THE LACK OF REVENUE GROWTH BANK SHARES HAVE BEEN STRONG PERFORMERS THIS YEAR AND SOME INVESTORS DECIDED TO TAKE PROFITS THE FUNDAMENTALS ARE VERY SOLID SAID ROBERT ALBERTSON BANKING ANALYST AT GOLDMAN SACHS & CO BUT PEOPLE ARE A LITTLE ANTSY ABOUT THE FUTURE WHEN THEY CAN'T SEE TOPLINE GROWTH IN REVENUE AND BANK LENDING THEY'VE HAD AN AWFULLY GOOD RUN AND CAN'T GO UP FOREVER IN A STRAIGHT LINE SAID JOHN NEFF SENIOR VICE PRESIDENT AT WELLINGTON MANAGEMENT BOTH MR ALBERTSON AND MR NEFF BELIEVE BANK SHARES ARE STILL ATTRACTIVE AND ARE RELATIVELY OPTIMISTIC ON THE INDUSTRY ONE CAN'T DENY THERE IS STILL PRETTY GOOD EARNINGS THRUST PARTICULARLY RELATIVE TO THE FALLEN ANGELS SUCH AS NONDURABLE CONSUMER COMPANIES MR NEFF SAID IN ACTIVE NEW YORK STOCK EXCHANGE TRADING SHARES OF CITICORP EDGED DOWN 375 CENTS TO 2875 CHEMICAL SHARES FELL TO 4025 DOWN 375 CENTS BANKERS TRUST SLID TO 7575 DOWN 1375 WELLS FARGO PLUNGED TO 113875 DOWN 550 FIRST INTERSTATE TUMBLED TO 5750 DOWN 225 MELLON FELL TO 5975 DOWN 1875 AND BANC ONE EASED TO 5750 DOWN 625 CENTS EARNINGS AT THE NATION'S LARGEST BANKING COMPANY WERE 71 CENTS A SHARE WALL STREET WAS EXPECTING ABOUT 48 CENTS A SHARE EARNINGS FROM THE BANK'S OVERSEAS OPERATIONS SOARED WHILE THE COMPANY'S PROVISION FOR LOAN LOSSES FELL TO 689 MILLION DOWN 291 MILLION SINCE YEAR END MEANWHILE EXPENSES REMAIN UNDER CONTROL AND THE COMPANY'S EQUITY CAPITAL RATIO ROSE BY 030 OF A PERCENTAGE POINT SECURITIES REVENUE WAS A RECORD 217 MILLION AND FOREIGN EXCHANGE REVENUE WAS 240 MILLION BOTH UP SHARPLY FROM YEAREARLIER PERIODS JOHN REED CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID AT THE ANNUAL MEETING THAT THE COMPANY WOULD NOT REINSTATE A DIVIDEND THIS YEAR BUT COULD IN 1994 IF THE COMPANY'S OPERATIONS PROCEED ON TRACK SEPARATELY THE COMPANY TOOK A 64 MILLION PRETAX CHARGE TO EXIT ITS PORTFOLIO MANAGEMENT BUSINESS IN INDIA THE COMPANY HAS BEEN IMPLICATED IN AN INDIAN SECURITIES SCANDAL BUT IT HAS CONSISTENTLY DENIED ANY WRONGDOING THE COMPANY WOULD NOT EXPLICITLY SAY WHY IT'S LEAVING THIS PART OF THE BUSINESS BUT SAID IT WILL CONTINUE TO DO BUSINESS IN INDIA CHEMICAL POSTED RECORD QUARTERLY RESULTS HELPED BY 70 MILLION IN SECURITIES GAINS AND PAYMENT OF 56 MILLION IN OVERDUE INTEREST FROM BRAZIL NET INCOME AFTER ACCOUNTING CHANGES WAS 374 MILLION UP 44 REVENUE FROM TRADING ROSE 11 TO 252 MILLION AND CORPORATE FINANCE AND SYNDICATION FEES CLIMBED 31 TO 71 MILLION NET INTEREST INCOME BETWEEN BORROWING AND LENDING ROSE 3 FROM THE YEAREARLIER PERIOD PROBLEM LOANS FELL BY 386 MILLION IN QUARTER BUT THE PROVISION FOR LOAN LOSSES WAS ALMOST UNCHANGED AT 315 MILLION REFLECTING THE CONTINUED DESIRE TO BUILD RESERVES THE COMPANY SAID PROBLEM LOANS WOULD CONTINUE TO DECLINE TOTAL OPERATING EXPENSES WERE UP SLIGHTLY AS A RESULT OF A ONETIME CHARGE FOR ACQUISITIONS BY ITS TEXAS BANK BANKERS TRUST REPORTED OPERATING EARNING OF 269 A SHARE BOLSTERED BY 346 MILLION IN TOTAL TRADING REVENUE AND STRONG NET INTEREST INCOME NET INCOME AFTER ACCOUNTING CHANGES WAS 155 MILLION COMPARED WITH A RESTATED 600 MILLION IN THE YEAREARLIER PERIOD ITS RETURN ON EQUITY WAS 24 ONE OF THE BEST IN THE INDUSTRY THE PROVISION FOR CREDIT LOSSES WAS A MERE 30 MILLION AND TOTAL NONPERFORMING ASSETS DECLINED BY 166 MILLION OR 7 DURING THE QUARTER PRIMARILY BECAUSE OF THE SALE OF MEXICAN BONDS RECEIVED IN LIEU OF LOAN REPAYMENTS BANC ONE POSTED FIRSTQUARTER NET OF 2723 MILLION OR 103 A SHARE VS YEARAGO NET OF 179 MILLION OR 86 CENTS A SHARE RESTATED TO INCLUDE SEVERAL ACQUISITIONS UNDER THE POOLING OF INTEREST ACCOUNTING METHOD FIRSTQUARTER 1992 EARNINGS WERE 171 MILLION OR 64 CENTS A SHARE AT THE END OF THE FIRST QUARTER BANC ONE'S NONPERFORMING ASSETS WERE 803 MILLION COMPARED WITH 832 MILLION IN THE 1992 FOURTH QUARTER BANC ONE HAS 70 BILLION IN ASSETS CREDIT QUALITY IMPROVED FOR THE SECOND CONSECUTIVE QUARTER AT THE SAN FRANCISCOBASED BANK PROMPTING ITS CHAIRMAN CARL REICHARDT TO PREDICT THE WORST IS BEHIND US AND LEADING TO SPECULATION BY ANALYSTS THAT THE BANK'S QUARTERLY DIVIDEND RATE COULD RISE IN THE NEAR FUTURE THE DIVIDEND OF 50 CENTS A SHARE DECLARED TODAY WAS UNCHANGED THE FIRSTQUARTER PROFIT AT 172 PER SHARE EXCEEDED THE CONSENSUS ANALYSTS' ESTIMATE OF 143 A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH THE BANK LOWERED ITS LOANLOSS PROVISION TO 210 MILLION FROM 300 MILLION IN THE FOURTH QUARTER AND 215 MILLION A YEAR EARLIER TOTAL PROBLEM ASSETS FELL 6 FROM THE FOURTH QUARTER TO 248 BILLION FROM 265 BILLION NET CHARGEOFFS ALSO DECLINED TO 155 MILLION FROM 199 MILLION NONPERFORMING ASSETS DECLINED FOR THE SIXTH QUARTER IN A ROW AT THIS LOSANGELES BASED BANKHOLDING COMPANY IMPROVEMENTS IN EARNINGS AND ASSET QUALITY PROMPTED THE BOARD TO INCREASE THE COMPANY'S DIVIDEND BY 33 TO 40 CENTS A SHARE FROM 30 CENTS EXCLUDING THE EFFECT OF ACCOUNTING CHANGES AND AN EXTRAORDINARY ITEM OPERATING EARNINGS FOR THE QUARTER TOTALED 1195 MILLION OR 138 A SHARE A 97 INCREASE FROM 606 MILLION OR 73 CENTS A SHARE POSTED A YEAR AGO NONPERFORMING ASSETS TOTALED 668 MILLION AT THE QUARTER'S END DOWN 55 FROM 148 BILLION A YEAR EARLIER MELLON BANK POSTED 1993 FIRSTQUARTER NET INCOME OF 34 MILLION OR 31 CENTS A SHARE REFLECTING A 112 MILLION CHARGE RELATED TO A PENDING ACQUISITION AND 53 MILLION IN AFTERTAX GAINS FROM SECURITIES SALES EXCLUDING THESE ITEMS MELLON SAID ITS QUARTERLY NET INCOME WAS 93 MILLION OR 127 A SHARE IN THE 1992 FIRST QUARTER PITTSBURGHBASED MELLON HAD PRO FORMA FULLY TAXED NET OF 61 MILLION OR 90 CENTS A SHARE INCLUDING TAX BENEFITS WHICH ARE NO LONGER AVAILABLE MELLON'S NET INCOME IN THE 1992 FIRST QUARTER WAS 86 MILLION OR 136 A SHARE NONPERFORMING ASSETS DECLINED CHAIRMAN FRANK V CAHOUET SAID HE IS COMFORTABLE WITH ANALYSTS' 1993 ESTIMATES OF 510 TO 520 A SHARE WE SHOULD HAVE A GOOD YEAR HE TOLD REPORTERS BEFORE THE BANK'S ANNUAL MEETING IN PITTSBURGH 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 9304210092 930421 LAW LEGAL BEAT BROOKS BROS SETTLES JOBBIAS SUIT INQUIRY USED CONTROVERSIAL TESTS' BY RON SUSKIND STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON A RACE DISCRIMINATION CASE AGAINST BROOKS BROTHERS INC WAS SETTLED YESTERDAY BY THE APPAREL RETAILER WHICH WILL PAY FINES BUT NOT ADMIT WRONGDOING IN ONE OF THE FIRST JOBBIAS ACTIONS TO RELY ON UNDERCOVER INVESTIGATORS POSING AS APPLICANTS BASING BIAS CASES ON TESTING WHERE WHITES AND MINORITIES WHO AREN'T REAL APPLICANTS GAUGE WHETHER THEY'RE TREATED EQUALLY IS A CONTROVERSIAL PRACTICE WITH CIVIL RIGHTS ACTIVISTS ASSERTING THAT IT'S AMONG THE ONLY WAYS TO FERRET OUT SUBTLE HIRING DISCRIMINATION AND CRITICS COMPLAINING THAT IT CONSTITUTES ENTRAPMENT BY SETTLING THE CASE FILED LAST FALL BY THE MASSACHUSETTS COMMISSION AGAINST DISCRIMINATION AGAINST BROOKS BROTHERS AND WALKER'S RIDING APPAREL AN INDEPENDENT STORE IN BOSTON THE ISSUE OF WHETHER TESTING IN JOBBIAS CASES WILL WITHSTAND LEGAL CHALLENGES REMAINS OPEN THIS FIRST WAVE OF TESTS WERE CONSIDERED EXPERIMENTAL BUT THEY'VE BEEN SO SUCCESSFUL WE WILL NOW EXPAND USE OF THE PRACTICE SAID MICHAEL DUFFY CHAIRMAN OF THE MASSACHUSETTS COMMISSION WHO ADDED THAT HE HOPED FUTURE CASES WOULD PROCEED TO ADMINISTRATIVE HEARINGS AND AFFIRMATION IN COURT BUT TERMS OF THE SETTLEMENT AGREED TO BY BOTH STORES WERE SO GOOD WE JUST COULDN'T PASS IT UP THE CASE IS BASED ON RESPONSES FROM 70 MASSACHUSETTS BUSINESSES TO BOTH BLACK AND WHITE APPLICANTS IN THE SUMMER OF 1992 AT THE BROOKS BROTHERS STORE IN BOSTON'S FASHIONABLE BACK BAY SHOPPING DISTRICT A WHITE APPLICANT WAS ALLEGEDLY TOLD AN ASSISTANT MANAGER'S POSITION WAS OPEN WHILE AN HOUR LATER A BLACK APPLICANT WAS ALLEGEDLY TOLD THAT THE COMPANY WASN'T HIRING BLACK AND WHITE APPLICANTS RECEIVED A SIMILAR RESPONSE AT WALKER'S RIDING APPAREL ACCORDING TO COMMISSION OFFICIALS AS PART OF THE SETTLEMENT BROOKS BROTHERS A SUBSIDIARY OF BRITISHBASED MARKS & SPENCER PLC ADMITTED NO WRONGDOING AND AGREED TO MAKE PAYMENTS TO A STATE TRUST FOR EQUAL EMPLOYMENT RIGHTS AS WELL AS INSTITUTE AFFIRMATIVE ACTION AND MINORITY OUTREACH PROGRAMS IN ITS THREE MASSACHUSETTS STORES WALKER'S AGREED TO SIMILAR TERMS TOGETHER THE STORES WILL BE MAKING A PAYMENT IN THE TENS OF THOUSANDS OF DOLLARS SAID MR DUFFY WILLIAM ROBERTI PRESIDENT OF BROOKS BROTHERS SAID THE RETAIL CHAIN IS COMMITTED TO EQUAL EMPLOYMENT OPPORTUNITY AND WE HOPE TO EXPAND EMPLOYMENT OPPORTUNITIES FOR AFRICANAMERICANS WALKER'S OWNER PETER GORDON SAID WE DON'T DISCRIMINATE AND WE DIDN'T IN THIS CASE WE'VE HIRED EVERYONE FROM BLACKS TO GAYS TO AMERICAN INDIANS OVER THE YEARS CRITICS ARGUE THAT TESTING IS UNETHICAL BECAUSE THE TESTERS AREN'T REALLY INTERESTED IN A JOB RICHARD MICHAUD MR GORDON'S LAWYER SAID TESTING IS AN IMPERFECT TECHNIQUE THAT CAN'T BE RELIED ON TO SHOW REAL DISCRIMINATION HE SAID WALKER'S PASSED OVER A BLACK APPLICANT BECAUSE AN EQUALLY QUALIFIED WHITE APPLICANT HAD BEEN PAID LESS IN A PREVIOUS JOB AND COULD BE HIRED AT A LOWER SALARY OF COURSE BOTH APPLICANTS WERE INVESTIGATORS PRESENTING FICTITIOUS RESUMES AND INFORMATION WHILE USE OF TESTING IN HOUSING BIAS CASES HAS BEEN UPHELD BY THE SUPREME COURT RELYING ON SUCH TECHNIQUES FOR JOB DISCRIMINATION ACTIONS IS MORE COMPLEX WITH MORE FACTORS GOING IN A HIRING DECISION SAID MR DUFFY IT STILL AWAITS THE SUPPORT OF SOLID CASE LAW WHICH WE HOPE WILL BE THE NEXT STEP HE SAID MASSACHUSETTS WOULD EXPAND ITS TESTING PROGRAM SEVENFOLD OVER THE COMING YEAR SENDING INVESTIGATORS POSING AS APPLICANTS TO HUNDREDS OF COMPANIES TO TEST FOR DISCRIMINATION BASED ON RACE GENDER AND AGE WE MAY END UP HAVING A TEST CASE EMERGE FROM THE EXPANDED PROGRAM THE SECURITIES AND EXCHANGE COMMISSION ISN'T SUBJECT TO ANY STATUTES OF LIMITATIONS IN CIVIL ENFORCEMENT ACTIONS A FEDERAL APPEALS COURT IN SAN FRANCISCO RULED THE RULING APPARENTLY THE FIRST BY AN APPELLATE COURT ON THE SUBJECT AROSE IN A CASE AGAINST ZZZZ BEST CO THE GOVERNMENT'S PROSECUTION BEGAN THREE YEARS AFTER THE DEFUNCT RESEDA CALIF CARPETCLEANING COMPANY FILED FOR BANKRUPTCY IN 1987 THE COURT NOTED THAT GOVERNMENT AGENCIES ARE NOT AS A RULE BOUND BY STATUTES OF LIMITATIONS WHICH OTHERWISE RESTRICT MANY CIVIL LAWSUITS TO A PERIOD OF ONE TO TWO YEARS AFTER THE ALLEGED WRONG TIME DOES NOT RUN AGAINST THE KING SAID A THREEJUDGE PANEL OF THE COURT PUBLIC RIGHTS REVENUES AND PROPERTY SHOULD NOT BE FORFEITED DUE TO THE NEGLIGENCE OF PUBLIC OFFICIALS IN FAILING TO FILE QUICKLY HOWEVER JUDGES NEEDN'T ADMIT RIDICULOUSLY STALE CLAIMS THE COURT SAID THE COURT ALSO SAID DEFENDANTS AREN'T ENTITLED TO JURY TRIALS WHEN THE SEC SUES TO RECOVER ILLICIT PROFITS THE FEDERAL APPEALS COURT IN NEW YORK HAS RULED SIMILARLY JUNDA WOO CONTRIBUTED TO THIS ARTICLE 9304210091 930421 THREE MAJOR THRIFTS IN CALIFORNIA REPORT LOWER 1STPERIOD NET THREE MAJOR CALIFORNIA THRIFTS REPORTED LOWER FIRSTQUARTER EARNINGS DESPITE SOME IMPROVEMENT IN CREDIT QUALITY AS REAL ESTATE VALUES APPEAR TO BE STABILIZING THE EARNINGS OF ALL THREE HF AHMANSON & CO GREAT WESTERN FINANCIAL CORP AND COAST SAVINGS FINANCIAL INC DECLINED IN PART BECAUSE YEAREARLIER RESULTS INCLUDED ONETIME GAINS FOR ACCOUNTING CHANGES RELATED TO INCOME TAXES BUT IN THE LATEST QUARTER THE THRIFTS BENEFITED FROM LOWER LOANLOSS PROVISIONS THE TRIO'S EARNINGS FELL SHORT OF ANALYSTS' FORECASTS THE CONSENSUS OF WALL STREET ANALYSTS WAS FOR AHMANSON TO EARN 28 CENTS A SHARE VS A REPORTED 23 CENTS FOR GREAT WESTERN 32 CENTS A SHARE VS A REPORTED 30 CENTS AND FOR COAST 29 CENTS A SHARE AGAINST A REPORTED 25 CENTS ACCORDING TO ZACKS INVESTMENT RESEARCH ONLY GREAT WESTERN CHATSWORTH CALIF HAS FAILED TO REVERSE A RISE IN PROBLEM ASSETS THE THRIFT'S PROBLEMS REPRESENT 54 OF TOTAL ASSETS OR 21 BILLION UP FROM 512 IN THE PREVIOUS PERIOD AND 448 A YEAR AGO ITS LOSS PROVISION AT 80 MILLION WAS LOWER THAN THE 107 MILLION IN 1992'S FIRST QUARTER DUE TO IMPROVEMENT IN COMMERCIAL REAL ESTATE HOWEVER THE THRIFT STILL FELT THE EFFECTS OF RISING SINGLEFAMILY RESIDENTIAL DELINQUENCIES RELATED TO THE WEAKNESS IN THE CALIFORNIA ECONOMY AND THE COMPANY'S ACCELERATED EFFORTS TO DISPOSE OF PROBLEM REAL ESTATE SAID JAMES MONTGOMERY GREAT WESTERN'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER AT AHMANSON IRWINDALE CALIF THE NATION'S LARGEST THRIFT PROBLEM ASSETS FELL SLIGHTLY FOR THE SECOND CONSECUTIVE QUARTER TO 445 OF TOTAL ASSETS OR 216 BILLION VS 461 AT THE END OF THE FOURTH QUARTER THE CURRENT TOTAL IS DOWN 10 FROM LAST FALL'S PEAK LENDING CREDENCE TO THE VIEW OF SOME ANALYSTS THAT AHMANSON'S AGGRESSIVE SALE OF BAD LOANS AND CONSERVATIVE UNDERWRITING IS PAYING OFF ITS LOANLOSS RESERVE WAS 506 MILLION DOWN FROM 932 MILLION IN THE FOURTH QUARTER AND 118 MILLION A YEAR EARLIER COAST SAVINGS' PROBLEM ASSETS DECREASED FOR THE EIGHTH CONSECUTIVE QUARTER TO 374 OF TOTAL ASSETS OR 3081 MILLION DOWN FROM 382 IN THE PREVIOUS QUARTER AND A RECENT PEAK OF 443 IN THE SECOND QUARTER OF 1991 COAST BASED IN LOS ANGELES TOOK AN 11 MILLION LOANLOSS CHARGE VS 15 MILLION A YEAR EARLIER 9304210090 930421 LETTERS TO THE EDITOR SAME OLD CHARACTERS DOWN THROUGH HISTORY MAKING COMPARISONS OF CURRENT BUSINESS LEADERS WITH FAMOUS PEOPLE OF THE PAST HEROES OF BUSINESS TRAGIC OR NOT GET CLASSICAL TREATMENT PAGE ONE MARCH 9 HAS ITS OWN FAMOUS PRECEDENT ACCORDING TO HARRY TRUMAN THERE'S NOTHING NEW IN HUMAN NATURE THE ONLY THING THAT CHANGES ARE THE NAMES WE GIVE THINGS IF YOU WANT TO UNDERSTAND THE 20TH CENTURY READ THE LIVES OF THE ROMAN EMPERORS ALL THE WAY FROM CLAUDIUS TO CONSTANTINE QUOTED IN THE PREFACE TO PLAIN SPEAKING BY MERLE MILLER MR TRUMAN SIMILARLY REFERRED TO THE VALUE OF THE FAMILY'S EDITION OF PLUTARCH'S LIVES WHEN I WAS IN POLITICS THERE WOULD BE TIMES WHEN I TRIED TO FIGURE SOMEBODY OUT AND I COULD ALWAYS TURN TO PLUTARCH AND NINE TIMES OUT OF 10 THERE WOULD BE A PARALLEL IN THERE IT WAS THE SAME WITH THOSE OLD BIRDS BACK IN GREECE AND ROME AS IT IS NOW I TOLD YOU THE ONLY THING NEW IN THE WORLD IS THE HISTORY YOU DON'T KNOW AS ANY GOOD BIOGRAPHER KNOWS CIRCUMSTANCES MAY CHANGE BUT HUMAN CHARACTER DOES NOT THERE IS NO SURER WAY TO FIGURE SOMEBODY OUT THAN TO FIND SIMILAR CHARACTER TRAITS IN AN HISTORICAL PERSON 9304210088 930421 INSIDER TRADING SPOTLIGHT CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9304210087 930421 REVIEW & OUTLOOK EDITORIAL THE MODERN ATATURK THOSE WHO PAY ATTENTION TO WORLD AFFAIRS OFTEN FIND FRUSTRATION IN THE FITS AND STARTS OF NATIONS A GREAT EVENT SUCH AS THE FALL OF THE BERLIN WALL WILL ASSUREDLY DRIVE EVENTS FORWARD BUT THE DAILY WORK OF MAKING IMPERFECT SYSTEMS BETTER IS NOT SO EXCITING THE PROGRESS NOT OFTEN SO OBVIOUS THIS BRIEF PRELUDE IS MEANT TO BRING FOCUS ON AN INDIVIDUAL WHO MANAGED THE RARE FEAT OF MOVING A NATION SIGNIFICANTLY FORWARD TURGUT OZAL WAS ONE OF THOSE RARE LEADERS WHOSE VISION AND SKILL NOT ONLY TRANSFORMED A NATION INTERNALLY BUT CHANGED ITS PLACE INTERNATIONALLY AS WELL AT 66 HE DIED OF A HEART AILMENT ON SATURDAY LEAVING TURKS AND OTHERS TO REFLECT ON THE FUTURE OF A COUNTRY THAT HAS BECOME A CRUCIAL BRIDGE BETWEEN THE WEST AND THE MURKY MIDDLE EAST AND CENTRAL ASIA ONE ONLY HAS TO LOOK BACK ON PREOZAL TURKEY TO MARVEL AT THE CHANGE POLITICAL AND ECONOMIC TURMOIL IN THE 1970S HAD LEFT THE COUNTRY A MESS TERRORISTS HAD THE RUN OF THE LAND CLAIMING NEARLY 5000 LIVES BY 1980 INFLATION WAS RAMPANT AND THE LOSSMAKING STATE ENTERPRISES WERE BLEEDING THE GOVERNMENT TO RESTORE ORDER THE MILITARY WITH WIDE POPULAR SUPPORT TOOK POWER MR OZAL WHO HAD BEEN IN CHARGE OF ECONOMIC REFORMS UNDER PRIME MINISTER SULEYMAN DEMIREL WAS ELECTED PRIME MINISTER IN THE FALL OF 1983 BY 1986 THE COUNTRY WAS LEADING THE 24 OECD COUNTRIES WITH A 79 GROWTH RATE EXPORTS SURGED MR OZAL CUT WORKERS' TAXES AND GAVE INDUSTRY INCENTIVES TO MODERNIZE AND INVEST TO INSTILL THE DISCIPLINES OF COMPETITION HE TORE DOWN BUREAUCRATIC BARRIERS TO IMPORTS MAKING FOREIGN ITEMS WIDELY AVAILABLE BUT MR OZAL HAD MORE THAN JUST AN ECONOMIC PLAN HE HAD A VISION OF TURKEY'S INTERNATIONAL ROLE THAT PLACED IT SQUARELY IN LINE WITH THE WEST BUT WITH TIES TO THE EXTENT THEY COULD BE PRESERVED TO ITS MUSLIM NEIGHBORS TURKEY CONTRIBUTED NATO'S SECOND LARGEST ARMY AFTER THE US SHORING UP THE CRUCIAL SOUTHERN FLANK ONE OF MR OZAL'S BIGGEST DREAMS WAS TURKISH MEMBERSHIP IN THE EUROPEAN COMMUNITY FOR WHICH HE HAD APPLIED WITH THE SLOGAN TRADE NOT AID UNFORTUNATELY A MIXTURE OF PREJUDICE AND PROTECTIONISM HAS KEPT TURKEY'S APPLICATION FOR COMMUNITY MEMBERSHIP IN ABEYANCE AFTER GEORGE BUSH DECIDED TO SPARE SADDAM HUSSEIN'S DICTATORSHIP MR OZAL SUFFERED TURKEY WAS LEFT WITH A 7 BILLION BILL AND MORE THAN 250000 KURDISH REFUGEES ON ITS BORDER HAVING PROMISED THE PUBLIC THAT TURKEY'S PARTICIPATION WOULD BRING HANDSOME REWARDS IN THE FORM OF FINANCIAL COMPENSATION AND PROGRESS FOR TURKEY'S EC BID HE TOOK A BEATING AT THE POLLS WHEN THESE DIDN'T MATERIALIZE THE OPPOSITION ALSO PLAYED UP THE COUNTRY'S CONTINUING ECONOMIC TROUBLES VOTERS THEN SNUBBED MR OZAL'S MOTHERLAND PARTY IN THE 1991 ELECTIONS MR OZAL'S DEATH COMES AT A TIME WHEN TURKEY IS MORE STABLE THAN EVER BUT HE ALSO LEAVES THE SCENE AT A TIME WHEN TURKEY'S INTERNATIONAL ROLE IS ARGUABLY MORE IMPORTANT THAN EVER THE BALKAN TROUBLES THE ARMENIANAZERI CONFLICT OVER NAGORNOKARABAKH THE NEED TO FOSTER ECONOMIC AND POLITICAL LIBERALISM IN CENTRAL ASIA AND THE PRESENCE OF NEIGHBORHOOD BULLIES LIKE SYRIA IRAN AND IRAQ ALL WILL REQUIRE A STEADY HAND REGARDLESS OF WHO IS CHOSEN TO REPLACE MR OZAL AS PRESIDENT PRIME MINISTER DEMIREL WILL REMAIN TURKEY'S NUMBER ONE POLITICIAN THAT THIS IS SO IS A TESTIMONY TO HOW FAR TURKEY'S DEMOCRACY HAS COME MR DEMIREL WAS DEPOSED TWICE BY THE MILITARY IN 1971 AND 1980 AND HAS COME BACK SEEMINGLY THE WISER FOR IT HE HAS SHOWN DEXTERITY AND RESOLVE IN HANDLING THE KURDISH PROBLEM AND A SENSITIVITY TOWARD TURKEY'S ROLE IN CENTRAL ASIA IT IS VERY MUCH TO BE HOPED THAT MR DEMIREL AND THE REST OF TURKEY'S LEADERSHIP CAN PROVIDE THE VISION AND STEWARDSHIP THAT THIS IMPORTANT NATION'S ECONOMIC PROBLEMS AND INTERNATIONAL CHALLENGES NOW DEMAND 9304210086 930421 QUIET BOOM US SERVICE EXPORTS ARE GROWING RAPIDLY BUT ALMOST UNNOTICED THEY RACK UP BIG SURPLUSES PARTLY OFFSETTING DEFICITS IN MERCHANDISE TRADING INFORMATION IS A KEY PRODUCT BY RALPH T KING JR STAFF REPORTER OF THE WALL STREET JOURNAL AMERICAN COMPANIES THAT DON'T MAKE A THING ARE TURNING THE US INTO AN EXPORT POWERHOUSE THE COUNTRY'S MERCHANDISE DEFICIT AT 96 BILLION LAST YEAR AND TOPPING 100 BILLION IN SEVEN OF THE PAST NINE YEARS PROVOKES REPEATED OUTBURSTS AGAINST AMERICA'S TRADING PARTNERS BUT ALMOST UNNOTICED US COMPANIES THAT SELL SERVICES RATHER THAN RAW MATERIALS OR MANUFACTURED GOODS RACKED UP A 59 BILLION TRADE SURPLUS LAST YEAR A NEARLY FIVEFOLD INCREASE FROM 1986 IF GOODS AND SERVICES TRADE DATA ARE LUMPED TOGETHER THEY AREN'T BECAUSE OF AN OUTDATED COMMERCE DEPARTMENT CONVENTION IT BECOMES CLEAR THAT THE US HAS AN ACEINTHEHOLE IN WORLD TRADE US COMPANIES ARE SPARKING A HIDDEN BOOM IN SERVICES EXPORTS SAYS ALLEN SINAI A BOSTON CO ECONOMIST THAT BOOM NOT ONLY ENRICHES THE COMPANIES AND THEIR SHAREHOLDERS BUT ALSO CREATES A SIGNIFICANT NUMBER OF HIGHPAYING JOBS IN THE US THOUGH FEWER JOBS THAN A BOOM IN MANUFACTURED EXPORTS WOULD BRING WORLDCLASS SUPPLIERS OF SERVICES INCLUDE BRANDNAME GIANTS SUCH AS AMERICAN EXPRESS CO MCDONALD'S CORP AND WALT DISNEY CO ALSO AMONG THEM ARE THOUSANDS OF SMALLER COMPANIES SUCH AS MONITOR CO A MANAGEMENTCONSULTING FIRM IN CAMBRIDGE MASS THAT GETS HALF OF ITS 60 MILLION IN ANNUAL REVENUE FROM ABROAD WHAT ALL THESE COMPANIES ARE EXPORTING SO SUCCESSFULLY IS INFORMATION KNOWHOW CREATIVITY AND TECHNOLOGY THINGS THE REST OF THE WORLD BADLY WANTS INFORMATION IS AS MUCH A PRODUCT AS AN AUTOMOBILE BUT THIS IS NOT THE WAY PEOPLE LOOK AT IT WE ARE CONDITIONED BY THE GOODS ECONOMY OF YESTERYEAR MR SINAI SAYS THE MISCONCEPTION ARISES IN PART FROM THE ONSLAUGHT OF CONSUMER IMPORTS SUCH AS JAPANESE CARS AND STEREOS WHICH DON'T BLEND INTO THE WOODWORK THE WAY INTANGIBLE US SERVICES DO ABROAD FEW PEOPLE KNOW THAT LAST YEAR THE US RAN A SURPLUS IN SERVICES WITH JAPAN TOTALING 14 BILLION EQUAL TO 28 OF AMERICA'S 50 BILLION MERCHANDISE DEFICIT WITH THAT COUNTRY BUT AS THE NATION'S PRIVATE SERVICES SECTOR HAS ECLIPSED MANUFACTURING IN OUTPUT ITS IMPORTANCE IN FOREIGN TRADE HAS SURGED TO 28 OF TOTAL EXPORTS FROM 17 IN 1980 AND AS THE WEALTH OF US TRADING PARTNERS GROWS AND IF TRADE BARRIERS CONTINUE TO FALL FOREIGN DEMAND FOR US SERVICES IS BOUND TO INCREASE MR SINAI SAYS IT IS VERY EASY TO SEE THE SERVICES TRADE SURPLUS DOUBLING OR TRIPLING BY THE END OF THE DECADE TO NEARLY 200 BILLION SOME OF THE SERVICES RESPONSIBLE FOR THE HIDDEN BOOM DON'T SEEM LIKE EXPORTS AT ALL FOR EXAMPLE SPENDING BY FOREIGN VISITORS TO THE US ON HOTEL ROOMS RESTAURANT MEALS AIR FARES VACATION ATTRACTIONS AND THE LIKE GENERATED ABOUT ONETHIRD OF THE 59 BILLION PRIVATE SERVICES SURPLUS LAST YEAR FOREIGN ENROLLMENT IN US UNIVERSITIES TOTALING MORE THAN 400000 STUDENTS ADDED 5 BILLION OR SO ALL THE REST IS GENERATED BY BUSINESS AND TECHNICAL SERVICES SUCH AS ENGINEERING ACCOUNTING COMPUTING AND LEGAL SERVICES AND BY ENTERTAINMENT AND NEW TECHNOLOGIES THAT EARN ROYALTIES AND LICENSE FEES COMPANIES OFFERING SERVICES OF THESE TYPES HAVE ACHIEVED THE FASTEST GROWTH ABROAD AT DISNEY CHAIRMAN MICHAEL EISNER SAYS FOREIGN SALES WHICH ALREADY ACCOUNT FOR 19 OF TOTAL SALES UP FROM 10 IN 1987 SHOULD CONTINUE TO GROW FASTER THAN ITS DOMESTIC BUSINESS AT TEXAS INSTRUMENTS INC ROYALTIES PAID BY FOREIGNERS FOR USE OF ITS COMPUTERCHIPMAKING PATENTS HAVE QUADRUPLED SINCE 1987 TO NEARLY 400 MILLION AND AT WASTE MANAGEMENT INC FOREIGN SALES SURGED MORE THAN 15FOLD IN THE PAST SIX YEARS TO 15 BILLION IN 1992 IN ADDITION TO PROFITS FROM EXPORTS US COMPANIES EARNED ABOUT 20 BILLION LAST YEAR ON SALES BY THEIR FOREIGNBASED SERVICE OPERATIONS SUCH AS TRAVEL OFFICES OPERATED BY AMERICAN EXPRESS IN NEW DELHI AND CAIRO THAT FIGURE IS ALSO EXPECTED TO RISE SHARPLY US CAPITAL INVESTMENT IN SUCH OPERATIONS DOUBLED BETWEEN 1986 AND 1991 TO A CUMULATIVE 216 BILLION EXCEEDING THAT OF US MANUFACTURERS ABROAD SERVICES EXPORTS HAVE BEEN AIDED BY THE PLUNGE IN THE DOLLAR SINCE 1985 IN ADDITION US SERVICE COMPANIES HELPED BY SUPERIOR UNIVERSITIES AND HONED BY AN INTENSELY COMPETITIVE ECONOMY ARE FAR MORE PRODUCTIVE THAN THEIR FOREIGN RIVALS MCKINSEY & CO CALCULATES THAT AMERICAN COMPANIES ARE ABOUT 50 MORE EFFICIENT THAN JAPANESE RETAILERS AND GERMAN TELECOMMUNICATIONS CONCERNS THESE AND OTHER NATIONS LIMIT US COMPANIES' ACCESS TO KEY SERVICE MARKETS PARTLY IN HOPES OF CATCHING UP NEVERTHELESS THE WIDER US ECONOMY AND ESPECIALLY ITS WORK FORCE WON'T REAP ALL OR EVEN MOST OF THE BENEFITS FROM THIS BOOM BECAUSE SERVICES ARE VERY DIFFERENT FROM MANUFACTURED GOODS ALTHOUGH US GOODS SOLD ABROAD CREATE MOSTLY US JOBS THE SALE OF USGENERATED SERVICES OFTEN INVOLVES LOTS OF FOREIGN EMPLOYEES BECAUSE MANY SERVICES ARE BY NECESSITY PROVIDED LOCALLY AT AMERICAN INTERNATIONAL GROUP INC MOST OF THE HUGE INSURANCE COMPANY'S POLICIES ARE DEVISED BY EXPERTS AT ITS NEW YORK HEADQUARTERS BUT AIG HAS 16000 FOREIGN EMPLOYEES AMOUNTING TO HALF ITS TOTAL WORK FORCE SELLING AND PROCESSING POLICIES IN 130 COUNTRIES MOREOVER MUCH AMERICAN SERVICE CAPABILITY CAN BE EASILY TRANSPLANTED ONE OF THE WORLD'S LARGEST AND MOST ADVANCED AIRCRAFTMAINTENANCE FACILITIES IS EXPECTED TO SIPHON PLENTY OF JOBS AND WORK AWAY FROM USBASED SHOPS WHEN IT OPENS AT YEAR END IN TIJUANA MEXICO THE OWNER MATRIX AERONAUTICA SAYS THAT AMERICANS WILL PROVIDE TRAINING AND SUPERVISION BUT THAT THE MAJORITY OF EMPLOYEES WILL BE LOWERWAGE MEXICAN TECHNICIANS SIMILARLY GENERAL ELECTRIC CO ELIMINATED HUNDREDS OF ESSENTIALLY SERVICE JOBS AT PLANTS IN THE MIDWEST BY SHIFTING TECHNICAL DRAFTING TO COMPUTERAIDED DESIGNERS IN INDIA AND EASTERN EUROPE SAYS JAMES SOMMERHAUSER OF THE INTERNATIONAL FEDERATION OF PROFESSIONAL AND TECHNICAL ENGINEERS TO HEAD OFF SUCH DEVELOPMENTS AT AMERICAN TELEPHONE & TELEGRAPH CO THE COMMUNICATIONS WORKERS OF AMERICA UNION IS WORKING CLOSELY WITH THE COMPANY IN STRATEGIC PLANNING WE WANT TO MAKE SURE SERVICE JOBS AREN'T EXPORTED THE WAY MANUFACTURING JOBS HAVE BEEN SAYS JEFF MILLER A CWA SPOKESMAN SOME AMERICAN COMPANIES DOMINATE SERVICE MARKETS ABROAD BECAUSE THEY TREAT CUSTOMERS BETTER THAN FOREIGN RIVALS DO THUS AMERICAN EXPRESS WHICH FIRST MADE IT EASIER FOR AMERICANS TO GO ABROAD NOW ALSO CATERS TO FOREIGNERS IN THEIR OWN COUNTRIES WITHIN GERMANY 80 OF ALL AMERICAN EXPRESS CARD USAGE IS BY GERMANS UP FROM 50 FIVE YEARS AGO GERMANS AND CARDHOLDERS IN 30 COUNTRIES NOW GET THEIR BILLS DENOMINATED IN THE LOCAL CURRENCY THE COMPANY'S FOREIGN REVENUE HAS NEARLY TRIPLED SINCE 1982 TO AN ESTIMATED 55 BILLION LAST YEAR SOME 20 OF ITS TOTAL REVENUE EVEN WHEN TECHNOLOGY TRANSFER IS THE PRIMARY OBJECTIVE CUSTOMER FOCUS COMES INTO PLAY IN 1989 A CONSORTIUM INCLUDING A UNIT OF PACIFIC TELESIS GROUP THE SAN FRANCISCO BABY BELL WON THE RIGHT TO BUILD AND PARTLY OWN A 2 BILLION CELLULARPHONE NETWORK IN GERMANY OTHER BIDDERS HAD THE TECHNICAL EXPERTISE BUT THE PACTEL UNIT OFFERED SUPPORT SYSTEMS CRITICAL TO BUILDING THE BUSINESS AND MAKING IT USERFRIENDLY THINGS SUCH AS ACCOUNTING SOFTWARE MANAGEMENT INFORMATION SYSTEMS AND CUSTOMERSERVICE PROCEDURES IN THE US WE EXPECT GOOD SERVICE SAYS JAN NEELS PRESIDENT OF THE UNIT PACIFIC TELESIS INTERNATIONAL THAT HAS FORCED US COMPANIES TO CATER TO IT AND THAT IS WHY WE BRING VALUE TO PROJECTS IN EUROPE WHERE UNTIL RECENTLY THE ATTITUDE WAS SHUT UP YOU SHOULD BE GLAD YOU HAVE PHONE SERVICE AFTER JUST FOUR YEARS FOREIGNERS ACCOUNT FOR 15 OF THE UNIT'S 800000 CELLULAR CUSTOMERS WORLDWIDE SOME OPPORTUNITIES ARISE FROM AMERICANS' LONG EXPERIENCE WITH PROBLEMS THAT OTHER COUNTRIES ARE JUST BEGINNING TO FACE US ENVIRONMENTAL REGULATION FOR EXAMPLE SPAWNED A GIANT WASTEHANDLING INDUSTRY AN INDUSTRY THAT IS PRIMITIVE OR NONEXISTENT IN MUCH OF THE WORLD INTO THIS VOID WADED WASTE MANAGEMENT IT COLLECTS TRASH CLEANS STREETS AND CONSTRUCTS SANITARY LANDFILLS IN 20 COUNTRIES INCLUDING ARGENTINA AND NEW ZEALAND IT ALSO HAS A 15YEAR CONTRACT TO RUN A HAZARDOUSWASTE TREATMENT PLANT THAT WILL PROCESS ALL OF HONG KONG'S INDUSTRIAL WASTE COMPLICATED LEGAL AND TAX SYSTEMS IN THE US HAVE PROVIDED A SIMILAR ADVANTAGE TO LAW AND ACCOUNTING FIRMS AT CHICAGOBASED BAKER & MCKENZIE THE WORLD'S LARGEST LAW FIRM MORE THAN HALF ITS 1651 ATTORNEYS WORK OUTSIDE THE US ITS CHAIRMAN JOHN MCGUIGAN IS AUSTRALIAN AND MANY PARTNERS ARE ELIGIBLE TO PRACTICE LAW IN SEVERAL COUNTRIES LIKE AMERICAN EXPRESS IT EXPANDED WITH THE AIM OF SERVING US MULTINATIONALS WHEREVER THEY OPERATED AND NOW IT ADVISES MANY FOREIGN CLIENTS AT HOME AND ABROAD BESIDES THE MAJOR CAPITALS THE FIRM HAS OFFICES IN CITIES SUCH AS VALENCIA VENEZUELA AS BIG AND VIBRANT AS IT IS THE US ECONOMY IS A BREEDING GROUND FOR STATEOFTHEART THINKING ON MANY FRONTS MONITOR CO FOR EXAMPLE PROVIDES A PIPELINE FOR MANAGEMENT IDEAS FROM THE BEST US BUSINESS SCHOOLS THROUGH SEVEN OVERSEAS OFFICES INCLUDING ONES IN MADRID MILAN AND SEOUL COFOUNDED IN 1984 BY MICHAEL PORTER A HARVARD PROFESSOR THE FIRM CONCEIVES BUSINESS STRATEGIES TO HELP CLIENTS EXPLOIT THEIR COMPETITIVE STRENGTHS BIG COMPANIES SUCH AS TEXAS INSTRUMENTS AREN'T THE ONLY ONES TAPPING DEMAND FOR US TECHNOLOGY VISUAL SOFTWARE INC OF WOODLAND HILLS CALIF EMPLOYS ABOUT A DOZEN SOFTWARE ENGINEERS WHO CUSTOMIZE GRAPHICS AND ANIMATION CODE FOR CLIENTS IN PLACES SUCH AS CYPRUS AUSTRIA AND MEXICO ONE FOREIGN GOVERNMENT RETAINED THE COMPANY TO MAKE VOTERIDENTIFICATION CARDS USING UNFORGIBLE 3D PHOTO IMAGES FOUNDED JUST THREE YEARS AGO VISUAL SAYS 40 OF ITS 35 MILLION OF REVENUE COMES FROM ABROAD DOUGLAS RICHARD VISUAL SOFTWARE'S CHIEF EXECUTIVE DOUBTS THAT THE US WILL LOSE ITS DOMINANCE IN SOFTWARE PROGRAMMING ANYTIME SOON PEOPLE SAY INDIA HAS HUNDREDS OF PROGRAMMERS LINING UP SOFTWARE CODE AT LOW COST THAT'S FINE AS LONG AS THE CODE IS LIKE ASSEMBLING A TOASTER HE SAYS BUT IF YOU INTRODUCE A CREATIVE ELEMENT INTO THE PROCESS WHICH INEVITABLY YOU DO THEN SOFTWARE WRITING IS MUCH MORE A CRAFT CLOSER TO WRITING A NOVEL THAN BUILDING A TOASTER DITTO FOR THE ENTERTAINMENT INDUSTRY THE NATION'S SECONDLARGEST EXPORTER AFTER AEROSPACE DISNEY ACCOUNTED FOR A BIG SLICE OF THE INDUSTRY'S ESTIMATED 1992 SURPLUS OF 6 BILLION THE COMPANY PRODUCES THE MOST POPULAR TV SHOWS IN RUSSIA AND GERMANY PUBLISHES ITALY'S BESTSELLING WEEKLY MAGAZINE AND LURES MORE JAPANESE VISITORS TO TOKYO DISNEYLAND THAN ALMOST ANY OTHER ATTRACTION IN JAPAN FOREIGN BOXOFFICE REVENUE FOR BEAUTY AND THE BEAST ALONE HIT 200 MILLION MR EISNER DISNEY'S CHAIRMAN ATTRIBUTES THE SUCCESS OF HIS COMPANY AND OTHERS IN HOLLYWOOD PARTLY TO THE SIZE AND AFFLUENCE OF THE WORLD'S ENGLISHSPEAKING POPULATION BUT ALSO HE SAYS FOREIGNERS SENSE THAT WHAT ENDS UP ON THE SCREEN IS FREELY CREATED WE ARE MAKING MOVIES ABOUT AND IN A SYSTEM OF FREEDOM THAT MANY FOREIGNERS REVERE OUR POLITICAL SYSTEM CREATES INTELLECTUAL PRODUCTS THAT ARE HUNGERED FOR AROUND THE WORLD BESIDES ENTERTAINMENT THE WORLD YEARNS FOR NUTSANDBOLTS IDEAS THAT LIFT LIVING STANDARDS ENTER US FRANCHISERS SOME 450 STRONG WITH 40000 OUTLETS WORLDWIDE WHICH ARE TAPPING INTO A RICH ENTREPRENEURIAL VEIN IN MANY CULTURES THIS IS ESPECIALLY TRUE IN PLACES SUCH AS EASTERN EUROPE AND SOUTH AFRICA WHERE SMALL BUSINESS HAS BEEN HOBBLED FOR YEARS THE GLOBAL EXPANSION OF MCDONALD'S IS WELL KNOWN BUT HOW ABOUT THAT OF I CAN'T BELIEVE IT'S YOGURT LTD DURING ITS 15 YEARS IN THE US THE DALLASBASED FRANCHISER HAS CREATED A STEPBYSTEP PROCEDURE FOR OPENING AND RUNNING A FROZENYOGURT STORE ANYWHERE IN THE WORLD SAYS JAMES AMOS JR ITS CHIEF OPERATING OFFICER IT WORKS CLOSELY WITH LOCAL CONTACTS FAMILIAR WITH THE REQUIREMENTS AND IDIOSYNCRASIES OF EACH COUNTRY AND IT PROMOTES FRANCHISEES' LONGTERM SUCCESS BY GETTING MOST OF ITS PROFIT FROM PRODUCT SALES RATHER THAN UPFRONT FRANCHISE FEES IN THE PAST THREE YEARS THE COMPANY HAS OPENED 127 OUTLETS IN 20 COUNTRIES IT EXPECTS TO HAVE 1000 WITHIN TWO YEARS THE WORLD IS NOT PANTING FOR FROZEN YOGURT BECAUSE THEY DON'T KNOW WHAT IT IS MR AMOS SAYS BUT THEY ARE DESPERATE FOR WAYS TO START A BUSINESS 9304210085 930421 PEOPLE PATTERNS BY ALAN L OTTEN HEALTH HABITS GET A MIXED REPORT CARD FOR THE LAST HALF OF THE 1980S THE NATIONAL CENTER FOR HEALTH STATISTICS ROUNDED UP THE TRENDS AS DISCLOSED IN LARGESCALE GOVERNMENT SURVEYS ON A NUMBER OF KEY HEALTH BEHAVIORS ALL TO THE GOOD THE PROPORTION OF REGULAR DRINKERS TWO OR MORE A DAY FELL 29 FROM 1985 TO 1990 AND THE RATIO OF THOSE ADMITTING TO DRIVING AFTER HAVING TOO MUCH TO DRINK DROPPED MORE THAN 27 THE CENTER SAID THE DECLINE IN DRIVING AFTER DRINKING WAS PARTICULARLY NOTEWORTHY AMONG HIGHINCOME MEN IN THEIR 20S IN 1985 42 OF THIS GROUP ADMITTED HAVING DONE THIS BUT IN 1990 ONLY 26 SAID THEY HAD ALSO ON THE PLUS SIDE REGULAR USE OF SEAT BELTS BY ADULTS ALMOST DOUBLED DURING THOSE YEARS AND THERE WAS A STEADY INCREASE IN THE ALREADYHIGH USE OF SEAT BELTS FOR YOUNG CHILDREN THE PERCENTAGE OF WOMEN OVER 40 WHO HAD EVER HAD A MAMMOGRAM JUMPED WITH THE GAIN PARTICULARLY LARGE AMONG BETTEREDUCATED AND MORE WELLTODO WOMEN THE CENTER ALSO HAILED A DROP OF ALMOST FIVE PERCENTAGE POINTS TO 255 IN THE PROPORTION OF ADULTS WHO SMOKE A DECLINE OF ALMOST FOUR POINTS TO 229 IN THE PERCENTAGE OF REALLY HEAVY SMOKERS 25 OR MORE CIGARETTES A DAY AND A DROP OF EIGHT POINTS TO 24 IN THE SHARE OF WOMEN WHO HAD SMOKED IN THE 12 MONTHS BEFORE CHILDBIRTH HOWEVER A MORE RECENT REPORT FOR 1991 SHOWED A SLIGHT INCREASE IN THE PERCENTAGE OF ADULTS WHO SMOKE WHICH CENTER OFFICIALS SAID WAS DISCOURAGING NOW FOR THE REALLY BAD NEWS DESPITE ALL THE TALK ABOUT HEALTHIER EATING PROPORTIONATELY MORE ADULTS WERE SUBSTANTIALLY OVERWEIGHT AT THE END OF THE DECADE COMPARED TO 1985 AND OVERWEIGHT PEOPLE WERE LESS LIKELY TO BE TRYING TO LOSE WEIGHT THE PROPORTION OF ADULTS EXERCISING OR PLAYING SPORTS REGULARLY FAILED TO GAIN THOUGH THERE WAS SOME INCREASE IN REGULAR EXERCISE AMONG THE HIGHRISK AGE GROUP OF MEN OVER 45 ANOTHER BIG NEGATIVE THE SHARE OF ADULTS REPORTING AT LEAST A MODERATE AMOUNT OF STRESS IN THE TWO WEEKS PRIOR TO BEING SURVEYED ROSE TO 57 IN 1990 FROM 51 IN 1985 DEMOGRAPHERS DEBATE THE NEGATIVE EFFECTS OF TEEN CHILDBEARING THOUGH THEIR DIFFERENCES APPEAR TO NARROW ONE WING LED BY UNIVERSITY OF PENNSYLVANIA SOCIOLOGIST FRANK FURSTENBERG AND UNIVERSITY OF DELAWARE ECONOMIST SAUL HOFFMAN HAS LONG CONTENDED THAT TEEN MOTHERHOOD HAS SUBSTANTIAL NEGATIVE COSTS IN LATER LIFE THEY SAY THEIR RESEARCH SHOWS TEEN MOTHERS ARE LESS LIKELY TO CONTINUE THEIR EDUCATION LESS LIKELY EVER TO GET MARRIED AND MORE LIKELY TO BE POOR AND ON WELFARE ANOTHER GROUP HEADED BY HEALTH POLICY SPECIALIST ARLENE GERONIMUS OF THE UNIVERSITY OF MICHIGAN AND PRINCETON UNIVERSITY ECONOMIST SANDERS KORENMAN HAS MAINTAINED THAT TEEN MOTHERS COME LARGELY FROM DISADVANTAGED FAMILY BACKGROUNDS AND THIS BACKGROUND RATHER THAN TEEN MOTHERHOOD ACCOUNTS FOR THEIR LATER PROBLEMS A GERONIMUSKORENMAN STUDY OF SETS OF SISTERS FOUND THAT WOMEN WHO HAD CHILDREN IN THEIR 20S FARED ALMOST AS POORLY AS THEIR SISTERS WHO HAD BEEN TEEN MOTHERS NOW THE TWO CAMPS SEEM TO BE INCHING TOWARD SOME COMMON GROUND FURTHER RESEARCH BY THE FURSTENBERGHOFFMAN GROUP HAS LED TO A CONCESSION THAT THEY MAY HAVE UNDEREMPHASIZED FAMILY BACKGROUND BUT EVEN TAKING THIS INTO ACCOUNT THEY SAY STATISTICALLY SIGNIFICANT NEGATIVE EFFECTS OF TEEN PARENTHOOD REMAIN THE GERONIMUSKORENMAN GROUP STILL INSISTS FAMILY BACKGROUND IS THE CRITICAL FACTOR BUT NOW AGREES THERE IS SOME EVIDENCE OF A NEGATIVE IMPACT OF TEEN MOTHERHOOD ITSELF THE DEBATE MAY SEEM A TYPICAL ACADEMIC DISPUTE OF LITTLE REALWORLD CONSEQUENCE BUT IT HAS IMPORTANT POLICY IMPLICATIONS JUST HOW TO APPORTION PUBLIC AND PRIVATE EFFORTS AND FUNDS BETWEEN PROGRAMS AIMED AT REDUCING POVERTY AND THOSE SEEKING TO ENCOURAGE DELAYED CHILDBEARING CLASSROOM FACES ARE CHANGING FROM KINDERGARTEN TO GRADUATE SCHOOL A CENSUS BUREAU REPORT ON THE NATION'S SCHOOL POPULATION AS OF OCTOBER 1991 FINDS THAT 31 OF THE ELEMENTARY AND SECONDARY SCHOOL POPULATION ALMOST ONETHIRD OF THE TOTAL IS NOW HISPANIC BLACK OR OF SOME OTHER NONWHITE GROUP IN 1972 THESE MINORITIES ADDED UP TO ONLY 21 OF THE SCHOOLAGE POPULATION BLACKS MADE UP MORE THAN 15 OF THE 1991 TOTAL AND HISPANICS JUST OVER 11 IN HIGHER EDUCATION THE STUDENT BODY CONTINUES TO GROW OLDER AND MORE FEMALE ALMOST 41 OF THE COLLEGE AND GRADUATE SCHOOL ENROLLMENT IN 1991 WAS 25 OR OLDER THE 1972 FIGURE WAS 28 MEN AND WOMEN 35 AND OVER ACCOUNTED FOR 18 OF ALL COLLEGE AND GRADUATE STUDENTS IN 1991 SLIGHTLY MORE THAN DOUBLE THEIR EARLIER SHARE WOMEN ACCOUNTED FOR 54 OF ALL STUDENTS IN COLLEGES AND GRADUATE SCHOOLS IN 1991 UP FROM ONLY 40 IN 1972 THEY HAVE BEEN IN THE MAJORITY SINCE 1979 WOMEN FIGURE FAR MORE HEAVILY AMONG OLDER STUDENTS HOWEVER TWOTHIRDS OF THE 35ANDOVER STUDENTS ARE WOMEN BIOLOGICAL CHANGES ASSOCIATED WITH PUBERTY RATHER THAN A WISH TO SEEM GROWN UP OR SOME OTHER PSYCHOLOGICAL OR SOCIAL FACTOR MAY BE BEHIND TEENAGERS' DESIRE TO STAY UP LATE SAYS SLEEP RESEARCHER MARY CARSKADON OF BROWN UNIVERSITY SHE SUGGESTS THAT SCHOOL START LATER IN THE MORNING FOR OLDER STUDENTS SO THEY CAN STAY UP LATER AT NIGHT AND STILL GET ENOUGH SLEEP MINORITIES ARE NOW A MAJORITY IN ONE OUT OF EIGHT CONGRESSIONAL DISTRICTS DOUBLE THE 1980 TOTAL THE CENSUS BUREAU SAYS BLACKS ARE A MAJORITY IN 32 DISTRICTS AND HISPANICS IN 18 WHILE ASIANS AND PACIFIC ISLANDERS FORM A MAJORITY IN HAWAII'S TWO DISTRICTS LATCHKEY KIDS A NATIONAL SURVEY COMMISSIONED BY CAMP FIRE BOYS AND GIRLS FINDS 52 OF TEENAGERS SAYING THAT IN THEIR PRETEEN YEARS THEY DIDN'T MIND GOING HOME TO AN EMPTY HOUSE AFTER SCHOOL WHILE 48 SAID THE EXPERIENCE HAD BEEN UNPLEASANT 9304210084 930421 TECHNOLOGY & MEDICINE BORLAND WORDPERFECT EXPECTED TO FORM ALLIANCE TO DEVELOP SOFTWARE BUNDLES' BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL BORLAND INTERNATIONAL INC AND WORDPERFECT CORP TWO OF THE FOUR LARGEST SUPPLIERS OF APPLICATIONS SOFTWARE FOR PERSONAL COMPUTERS ARE EXPECTED TO ANNOUNCE TODAY A BROAD SALES AND DEVELOPMENT PARTNERSHIP AIMED AT MICROSOFT CORP THE WORLD'S LARGEST SOFTWARE SUPPLIER WITH ANNUAL REVENUE OF ABOUT FOUR TIMES THE COMBINED SALES OF THE TWO COMPANIES THE CORNERSTONE OF THE ALLIANCE BETWEEN BORLAND AND WORDPERFECT SAY PEOPLE CLOSE TO THE DEAL IS A PRODUCT CONSISTING OF THREE SOFTWARE PROGRAMS FOR PCS THAT RUN MICROSOFT'S WINDOWS PROGRAM WORDPERFECT'S WORDPROCESSOR AND BORLAND'S QUATTRO SPREADSHEET AND PARADOX DATABASE ANALYSTS SAID THE MOVE MAKES SENSE AND IS THE LATEST EXAMPLE OF CONSOLIDATION IN A ONCE FRAGMENTED SOFTWARE INDUSTRY THIS STRIKES ME AS SOMETHING THE TWO COMPANIES HAD TO DO TO SLOW GAINS MADE BY MICROSOFT SAID JOHN HUMMER A VENTURE CAPITALIST IN EMERYVILLE CALIF WHO SPECIALIZES IN SOFTWARE IN RECENT YEARS MICROSOFT HAS PILED UP SALES TO CORPORATIONS WITH A DATABASESPREADSHEETWORDPROCESSOR BUNDLE CALLED MICROSOFT OFFICE LOTUS DEVELOPMENT CORP THE SECOND LARGEST APPLICATIONS SUPPLIER ALSO OFFERS A BUNDLE THE LACK OF A SIMILAR BUNDLE HAS HURT BOTH BORLAND AND WORDPERFECT WHO ARE STRIVING TO KEEP PACE WITH A SHIFTING MARKET THAT IS REWARDING CUSTOMERS FOR BUYING SOCALLED SUITES OF SOFTWARE APPLICATIONS MR HUMMER SAID BORLAND WHICH IS THE LEADING SUPPLIER OF DATABASES FOR PCS AND WORDPERFECT THE LONGTIME LEADER IN WORDPROCESSING PLAN AN AGGRESSIVE PRICE FOR THEIR BUNDLE PEOPLE FAMILIAR WITH THE ANNOUNCEMENT SAY THE BUNDLE CALLED BORLAND OFFICE WILL CARRY A LIST PRICE OF LESS THAN 600 WELL BELOW COMPETITIVE OFFERINGS FROM MICROSOFT AND LOTUS PEOPLE FAMILIAR WITH THE PARTNERSHIP SAY THAT IT IS NOT A PRELUDE TO A MERGER BETWEEN BORLAND AND WORDPERFECT BUT IT WILL INCLUDE JOINT DEVELOPMENT OF FUTURE PRODUCTS THE VERSION OF WORDPERFECT IN BORLAND OFFICE FOR INSTANCE HAS BEEN MODIFIED TO WORK MORE CLOSELY WITH BORLAND'S PARADOX AND QUATTRO PRODUCTS NEITHER COMPANY WOULD COMMENT ON THE SPECIFICS OF TODAY'S ANNOUNCEMENT BUT THE ALLIANCE COMES AT AN OPPORTUNE TIME FOR EACH BORLAND SCOTTS VALLEY CALIF IS JUST SHOWING SIGNS OF REBOUNDING STRONGLY AFTER A DISASTROUS 1992 WHEN IT REPEATEDLY FAILED TO SHIP PRODUCTS ON TIME BOTCHED THE CRUCIAL INTRODUCTION OF ITS FIRST WINDOWS SPREADSHEET AND CAME DANGEROUSLY CLOSE TO RUNNING OUT OF CASH BUT IN THE PAST FEW MONTHS SALES OF THE COMPANY'S SPREADSHEET AND DATABASES HAVE SOARED IN RESPONSE TO DEEP DISCOUNTING AND CRITICAL ACCLAIM FROM INFLUENTIAL REVIEWERS WORDPERFECT A CLOSELY HELD OREM UTAH CONCERN ALSO HAS STRUGGLED IN RECENT YEARS AFTER ESTABLISHING ITS HEGEMONY IN THE LATE 1980S OVER THE HUGE WORDPROCESSING MARKET WITH MICROSOFT'S WORD PRODUCTS CHEWING INTO ITS SHARE WORDPERFECT IS COUNTERATTACKING ON NUMEROUS FRONTS BESIDES ALLYING WITH BORLAND THE COMPANY IS PUSHING INTO ELECTRONIC MAIL ANOTHER STRONGHOLD OF LOTUS AND MICROSOFT AND TO GAIN GREATER VISIBILITY WITH CORPORATE CUSTOMERS WORDPERFECT WHICH IS ENTIRELY OWNED BY ITS TOP TWO EXECUTIVES IS CONSIDERING AN INITIAL PUBLIC OFFERING LATER THIS YEAR OR IN 1994 9304210083 930421 INTERNATIONAL CLINTON CAN'T DEPEND ON STRONGER YEN TO FIX TRADE GAP SOME IN TOKYO SAY BY WALL STREET JOURNAL STAFF REPORTERS JOHN BUSSEY AND CLAY CHANDLER IN TOKYO AND DAVID WESSEL IN WASHINGTON IS PRESIDENT CLINTON RIGHT IN COUNTING ON A STRONGER YEN TO DRIVE DOWN JAPAN'S HUGE TRADE SURPLUS WITH THE US NOT NECESSARILY SAY ECONOMISTS AND US BUSINESS EXECUTIVES IN TOKYO FOR TWO MONTHS THE CLINTON ADMINISTRATION HAS INDICATED IT IS WILLING TO ACCEPT A STRONGER YEN THAT HAS SENT THE JAPANESE CURRENCY SOARING RENEWING THE DEBATE OVER THE IMPORTANCE OF EXCHANGE RATES IN TRADE IN TOKYO TRADING YESTERDAY JAPAN'S CURRENCY HIT 11025 YEN TO THE DOLLAR ITS SECOND POSTWAR HIGH IN AS MANY DAYS MANY OFFICIALS AND ECONOMISTS IN THE US SAY THE STRONGER YEN WILL NARROW JAPAN'S TRADE SURPLUS BY MAKING ITS EXPORTS MORE EXPENSIVE OVERSEAS IN DOLLAR TERMS WHILE MAKING US PRODUCTS LESS EXPENSIVE IN JAPAN IT'S A NICE IDEA IN THEORY BUT THE REALITY ISN'T SO SIMPLE THE LAST TIME THE YEN SURGED IN THE LATE 1980S JAPAN'S TRADE SURPLUS DID EVENTUALLY RECEDE BUT ONLY FOR A WHILE SOME ECONOMISTS SAY THAT'S BECAUSE THE YEN DIDN'T FALL FAR ENOUGH PARTICULARLY GIVEN THE DIFFERENCE BETWEEN US AND JAPANESE INFLATION RATES THEY SAY JAPAN'S RECESSION IN THE EARLY 1990S ULTIMATELY DAMPED IMPORTS AND THAT'S WHAT SENT THE SURPLUS SOARING AGAIN BUT BEFORE THAT RECESSION THE DOLLAR WAS WEAKENING WHILE THE YEN WAS STRENGTHENING AND THE US TRADE DEFICIT SHRANK JUST AS THE ECONOMIC TEXTBOOKS PREDICTED IT WOULD IN MARKETS OUTSIDE JAPAN AND THE US WHERE GOODS FROM THE TWO COUNTRIES COMPETE THE US APPEARS TO HAVE GAINED GROUND STILL SOME OBSERVERS ARGUE THAT A STRONGER YEN COULD ACTUALLY MAKE THE TRADE PROBLEM WORSE EVERY PART OF THE WASHINGTON ECONOMISTS' REASONING FOR WHY A STRONGER YEN WILL BRING JAPAN'S TRADE SURPLUS DOWN IS FALSE CONTENDS JOHN STERN HEAD OF THE AMERICAN ELECTRONICS ASSOCIATION CHAPTER IN JAPAN JAPANESE COMPANIES DON'T RAISE THEIR PRICES IN LOCKSTEP WITH THE YEN AMERICAN CONSUMERS DON'T BUY FEWER JAPANESE PRODUCTS AMERICAN COMPANIES DON'T LOWER THEIR PRICES IN JAPAN IN LOCKSTEP WITH THE DOLLAR AND JAPANESE DON'T BUY AMERICAN PRODUCTS BECAUSE THEY'RE CHEAPER ADDS KENNETH COURTIS ECONOMIST FOR DEUTSCHE BANK IN TOKYO WE'VE BEEN PLAYING THIS GAME FOR 20 YEARS THE UNDERLYING STRUCTURAL DYNAMICS OF THE JAPANESE TRADE SURPLUS AFTER JAPAN ADJUSTS TO THE HIGHER CURRENCY ARE GOING TO REASSERT THEMSELVES AND GENERATE EVEN HIGHER TRADE SURPLUSES THE WASHINGTON ECONOMISTS THOUGH AREN'T CONCEDING JOHN WILLIAMSON OF THE INSTITUTE FOR INTERNATIONAL ECONOMICS A PRIVATE THINK TANK IN WASHINGTON SAYS EXCHANGE RATES REMAIN KEY TO UNDERSTANDING TRADE FLOWS AS FOR THE ARGUMENT THAT JAPANESE COMPANIES DON'T RAISE THEIR US PRICES IN RESPONSE TO THE STRENGTHENING YEN HE SAYS THAT'S A LOAD OF RUBBISH GO TRY BUYING PARTS FOR A JAPANESE CAR WE HAVE A HONDA AND THE LAST TIME I DID THAT THE YEN APPRECIATION SEEMS TO HAVE HAD AN EFFECT CLINTON ADMINISTRATION OFFICIALS MEANWHILE SAY IT ISN'T A STRONGER YEN ALONE THAT'S REQUIRED TO RIGHT THE TRADE IMBALANCE JAPAN SHOULD ALSO WORK TO OPEN MORE OF ITS MARKETS TO FOREIGN WARES WHY THOUGH DO SOME ECONOMISTS AND BUSINESS EXECUTIVES NONETHELESS BELIEVE A RISING YEN ULTIMATELY WON'T HALT JAPAN'S SURGING TRADE SURPLUS FOR STARTERS THE STRONGER YEN MAKES IT MORE EXPENSIVE TO DO BUSINESS IN JAPAN SAYS BILL FARRELL EXECUTIVE DIRECTOR OF THE AMERICAN CHAMBER OF COMMERCE IN JAPAN DIRECT INVESTMENT IN JAPAN BY US FIRMS SETTING UP OFFICES AND DISTRIBUTION NETWORKS IS CONSIDERED KEY TO IMPROVING THE BALANCE OF TRADE TROUBLE IS FEW US COMPANIES HAVE TAKEN THE PLUNGE NOW A STRONGER YEN WHICH RAISES THE COST OF RENTING SPACE AND PAYING WAGES IN JAPAN IS LIKELY TO SCARE EVEN MORE FIRMS AWAY MR STERN NOTES THAT AFTER THE LAST MAJOR STRENGTHENING OF THE YEN IN THE 1980S THE NUMBER OF US ELECTRONICS COMPANIES OPENING OFFICES AND OPERATIONS IN JAPAN EACH YEAR PLUMMETED TO 22 FROM 41 WE LOST FIVE YEARS OF NEW MARKET ACCESS FOR AMERICAN ELECTRONICS COMPANIES HE SAYS BY 1991 THE NUMBER WAS BACK UP SECOND IN THE SHORT TERM THE STRONGER YEN IS LIKELY TO SEND THE SURPLUS FIGURE SOARING BECAUSE THE TRADE BALANCE IS COMMONLY CALCULATED IN DOLLARS THE SOCALLED JCURVE EFFECT THIRD USING CURRENCY RATES TO THROTTLE EXPORTS RISKS CHOKING JAPAN'S ECONOMIC RECOVERY TOO THE US IS COUNTING ON AN INCREASE IN DOMESTIC DEMAND IN JAPAN TO SUCK IN NEW IMPORTS BUT JAPAN'S ECONOMY IS STILL IN A DEEP SLUMP AND ANY NEW BLOW COULD EASILY DELAY ITS COMEBACK YESTERDAY PRIME MINISTER KIICHI MIYAZAWA URGED THE CENTRAL BANK TO INTERVENE TO REVERSE THE YEN'S RISE BUT MR WILLIAMSON THE WASHINGTON ECONOMIST SAYS JAPAN CAN OFFSET THE YEN'S EFFECT BY INCREASING GOVERNMENT SPENDING TO STIMULATE THE ECONOMY JAPAN IS DOING JUST THAT IT RECENTLY ANNOUNCED A RECORD 132 TRILLION YEN ECONOMIC STIMULUS PACKAGE THEY SEE THEMSELVES LOSING FOREIGN DEMAND SAYS MR WILLIAMSON THEY COMPENSATE BY EXPANDING FISCAL POLICY GIVEN THE ECONOMIC FORCES AT WORK SUSUMU KATO CHIEF ECONOMIST AT CS FIRST BOSTON JAPAN LTD ESTIMATES THAT A 10 APPRECIATION IN THE YEN LOWERS JAPAN'S TRADE SURPLUS BY AS MUCH AS 40 BILLION ANNUALLY OVER THE LONG TERM INDEED JAPAN'S AUTO MAKERS HAVE RAISED PRICES IN THE US RECENTLY AND HAVE SEEN SALES PLUMMET YET THE LAST TIME THE YEN STRENGTHENED JAPAN'S EXPORTERS STRUGGLED FOR A TIME BUT SOON ADJUSTED PUSHING THE NATION'S TRADE SURPLUS UP TO LAST YEAR'S RECORD 10663 BILLION BY MOST ESTIMATES JAPAN'S SURPLUS IS HEADED TO ANOTHER RECORD THIS YEAR WHAT'S MORE JAPAN IN RECENT YEARS HAS SHIFTED A GREAT DEAL OF PRODUCTION TO DEVELOPING ASIAN NATIONS WHICH SHIP LOCALLY MADE JAPANESE PRODUCTS TO THE US JAPAN'S SOARING BILATERAL TRADE SURPLUS WITH THE US DOESN'T INCLUDE THIS OFFSHORE PRODUCTION IF IT DID TOKYO'S SURPLUS WITH THE US WOULD BE MUCH LARGER BETWEEN 1988 AND 1990 FOR EXAMPLE JAPAN'S BILATERAL EXPORTS TO THE US OF CONSUMER ELECTRONICS DROPPED 28 SAYS MR STERN DURING THAT SAME PERIOD THOUGH JAPANESE ELECTRONICS COMPANIES SET UP 31 OPERATIONS IN THAILAND ALONE THE RESULT WAS THAT FROM 1988 AND 1991 THAILAND'S EXPORTS TO THE US OF CONSUMER ELECTRONICS JUMPED TO 381 MILLION A YEAR FROM 7 MILLION THE JAPANESE DID THE SAME THING IN MALAYSIA INDONESIA MEXICO HE SAYS TAKEN TOGETHER THE US HAS NOT DECREASED ITS DEFICIT WITH JAPAN IN ELECTRONICS AS THE YEN STRENGTHENS FURTHER JAPAN IS ONLY LIKELY TO SHIFT MORE PRODUCTION TO THESE LOWERCOST COUNTRIES THE MAJORITY OF ECONOMISTS THEREFORE AGREE THAT THE US WILL HAVE TO PURSUE ADDITIONAL POLICIES TO REDUCE ITS TRADE DEFICIT WITH JAPAN SUCH AS BREAKING INTO NEW MARKETS IN JAPAN AND IMPROVING US COMPETITIVENESS PUSHING UP THE VALUE OF THE YEN IS AN ATTEMPT AT ANOTHER QUICK GOVERNMENT FIX ARGUES MR COURTIS OF DEUTSCHE BANK THE UNDERLYING ISSUES OF RELATIVE COMPETITIVENESS AND JAPAN'S UNDERCONSUMING ARE STILL OUTSTANDING 9304210082 930421 TECHNOLOGY & MEDICINE BREAST CANCER DDT EXPOSURE LINKED IN STUDY BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL RESEARCHERS IN NEW YORK HAVE FOR THE FIRST TIME CLEARLY LINKED THE RISK OF BREAST CANCER TO EXPOSURE TO THE PESTICIDE DDT A FINDING THAT IS LIKELY TO RENEW THE CONTROVERSY OVER PESTICIDE USE AND ITS EFFECTS ON HUMAN HEALTH ALTHOUGH BANNED IN THE US SINCE 1972 DDT IS STORED IN THE BODY'S FATTY TISSUES FOR DECADES A STUDY IN TODAY'S JOURNAL OF THE NATIONAL CANCER INSTITUTE SUGGESTS THAT THE PESTICIDE MAY BE ONE OF THE FACTORS BEHIND THE SHARP RISE SINCE 1973 IN THE INCIDENCE OF BREAST CANCER AMONG WOMEN OVER 50 YEARS OLD WHO HAD THE GREATEST EXPOSURE TO THE PESTICIDE MOREOVER THE STUDY RAISES CONCERNS ABOUT WOMEN IN MEXICO AND OTHER LATIN AMERICAN COUNTRIES WHERE THE PESTICIDE IS STILL USED THE WOMEN IN THE STUDY PROBABLY WERE EXPOSED TO DDT DECADES AGO ACCORDING TO THE RESEARCHERS THEY PRIMARILY WERE CAUCASIAN NEW YORK WOMEN FROM UPPER SOCIOECONOMIC BACKGROUNDS WHO DIDN'T HAVE ANY SPECIAL EXPOSURE TO DDT ACCORDING TO MARY S WOLFF ASSOCIATE PROFESSOR AT THE MOUNT SINAI SCHOOL OF MEDICINE AND THE LEAD RESEARCHER IN THE STUDY DDT HAS LONG BEEN SUSPECTED OF CAUSING CANCER BUT THE FEW STUDIES THAT HAVE BEEN CONDUCTED HAVE BEEN SMALL AND HAVEN'T FOUND A CLEAR CONNECTION ACCORDING TO THE RESEARCHERS DR WOLFF AND HER ASSOCIATES COMPARED BLOOD SAMPLES FROM 58 WOMEN WITH BREAST CANCER WITH SAMPLES FROM 171 WOMEN WHO DIDN'T HAVE THE DISEASE LEVELS OF DDE THE METABOLIZED FORM OF DDT WERE 35 HIGHER IN THE WOMEN WITH BREAST CANCER THE RESEARCHERS FOUND AFTER ADJUSTING FOR OTHER FACTORS THAT ARE ASSOCIATED WITH BREAST CANCER SUCH AS A FAMILY HISTORY OF THE DISEASE AND LATE FIRST PREGNANCY DDT EXPOSURE WAS FOUND TO INCREASE THE RISK OF BREAST CANCER FOURFOLD THIS STUDY IS PROVOCATIVE AND MANDATES THAT WE EXPLORE THIS ISSUE FURTHER SAID DAVID J HUNTER ASSISTANT PROFESSOR OF EPIDEMIOLOGY AT THE HARVARD SCHOOL OF PUBLIC HEALTH AND AUTHOR OF AN ACCOMPANYING EDITORIAL ON THE SUBJECT IN THE JOURNAL THE FINDINGS ARE LIKELY TO FUEL THE DEBATE OVER WHETHER FOOD SUPPLIES SHOULD BE COMPLETELY FREE OF PESTICIDES IN OCTOBER CALIFORNIA RESEARCHERS ARGUED IN A SCIENTIFIC JOURNAL THAT FEARS ABOUT SYNTHETIC PESTICIDE TRACES IN FOOD ARE OVERBLOWN ESPECIALLY CONSIDERING THAT PEOPLE CONSUME NATURALLY OCCURRING CARCINOGENS EVERY DAY CONGRESS ALSO MAY CONSIDER LOOSENING RULES THAT BAN ALL PESTICIDE RESIDUE IN PROCESSED FOODS WHEN IT TAKES UP FOOD SAFETY REGULATIONS LATER THIS YEAR SUCH A CHANGE HAS BEEN FAVORED BY MANY FOOD INDUSTRY GROUPS BUT A BUSH ADMINISTRATION POLICY OF ALLOWING MINIMAL AMOUNTS OF RESIDUE IN SOME FOODS WAS STRUCK DOWN IN COURT LAST YEAR ANOTHER RELATED CHEMICAL PCB USED AS ELECTRICAL INSULATION ALSO WAS FOUND IN HIGHER AMOUNTS IN WOMEN WITH BREAST CANCER BUT STATISTICALLY IT DIDN'T POSE A SIGNIFICANTLY HIGHER RISK ACCORDING TO THE RESEARCHERS THE STUDY SHOWS ONLY A STATISTICAL LINK BETWEEN DDT AND BREAST CANCER AND DOESN'T SHED LIGHT ON THE CAUSE OF THE DISEASE THE RESEARCHERS ADDED ALTHOUGH THE STUDY IS THE LARGEST DONE SO FAR IT IS SMALL BY EPIDEMIOLOGY STANDARDS AND NEEDS TO BE REPEATED AND EXPANDED DR WOLFF SAID DENNIS AVERY DIRECTOR OF THE CENTER FOR GLOBAL FOOD ISSUES AT THE HUDSON INSTITUTE WARNED AGAINST GENERALIZING THE STUDY RESULTS TO ALL PESTICIDES THEY'RE TALKING ABOUT A LINKAGE BETWEEN A PARTICULAR PESTICIDE THAT WAS RULED OFF THE ROAD 20 YEARS AGO AND WAS UNIQUE AT THAT TIME IN THAT IT WAS STORED IN TISSUES THE PESTICIDES WE'RE USING NOW ARE TESTED FAR MORE CAREFULLY HE SAID 9304210081 930421 NOTABLE & QUOTABLE THE CATHOLIC NOVELIST SHUSAKU ENDO WRITING ON WACO IN THE MARCH 17 SANKEI SHIMBUN A TOKYO NEWSPAPER THE EXTREMISM OF SOME CULTS HARMS EVERY CHRISTIAN WE ALL GET TARRED WITH THE SAME FANATICAL BRUSH AS THOUGH EACH ONE OF US IS HIGH ON SOME DANGEROUS NARCOTIC LONELINESS IS A BIG PROBLEM IN MODERN SOCIETY IT'S ONLY NATURAL THAT SO MANY PEOPLE SHOULD YEARN FOR SOMETHING SPIRITUAL IN THEIR LIVES THIS TREND IS PARTICULARLY STRONG IN THE YOUNGER GENERATION FOR WHOM THE THRILL OF FANATICAL FAITH SUBSTITUTES FOR THE CLOSE PERSONAL RELATIONSHIPS THEY'VE NEVER REALLY KNOWN INTOXICATED WITH EMOTION THEY SOMETIMES ACT IRRATIONALLY AND EASILY FALL PREY TO CHARISMATIC LEADERS LIKE DAVID KORESH AND SUN MYUNG MOON IT'S THE SAME TRAP THAT LARGE NUMBERS OF GERMAN YOUTHS FELL INTO WITH ADOLF HITLER AND THE NAZIS TRUE FAITH ISN'T A MATTER OF THRILLS OR INTOXICATION IT'S A GRADUAL PROCESS OF INTERNALIZATION A GENTLE LOVE FORBEARANCE AND PEACE OF MIND HOW CAN ANYTHING AS DIVORCED FROM THESE SIMPLE PRINCIPLES AS THE VIOLENCE AT WACO PASS FOR CHRISTIANITY 9304210080 930421 INTERNATIONAL US AND EC TRADE NEGOTIATORS FAIL TO SETTLE PROCUREMENTRULE DISPUTE BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US AND THE EUROPEAN COMMUNITY FAILED TO RESOLVE A DISPUTE OVER EC PROCUREMENT PRACTICES IN TWO DAYS OF INTENSE NEGOTIATIONS BUT SAID THEY WILL TRY AGAIN TODAY THE CLINTON ADMINISTRATION HAS THREATENED TO BLOCK EUROPEAN COMPANIES BEGINNING TOMORROW FROM OBTAINING FEDERAL CONTRACTS FOR TELECOMMUNICATION AND POWERGENERATION EQUIPMENT UNLESS THE EC DROPS BUYEUROPE PROCUREMENT RULES THE TRADE SANCTIONS WOULD BE THE FIRST TAKEN BY THE CLINTON TEAM GIVING THE DISPUTE A SYMBOLIC SIGNIFICANCE THAT OUTSTRIPS ITS ECONOMIC IMPACT EUROPEAN COMPANIES INITIALLY STAND TO LOSE ACCESS TO ABOUT 50 MILLION A YEAR IN FEDERAL CONTRACTS POCKET CHANGE BY WORLD TRADE STANDARDS US TRADE REPRESENTATIVE MICKEY KANTOR AND THE EC'S TOP NEGOTIATOR SIR LEON BRITTAN SPENT TWO DAYS TRYING TO SETTLE THE PROCUREMENT BATTLE AND PUSH FORWARD ON NEGOTIATIONS OVER WORLD TRADE TALKS AT A LATEAFTERNOON NEWS CONFERENCE WHERE BOTH MEN LOOKED DRAWN THEY SAID THEY WILL TALK AGAIN BY TELEPHONE AFTER SIR LEON RETURNED TO BRUSSELS THERE ARE OUTSTANDING ISSUES NOT RESOLVED SIR LEON SAID IT WOULD BE WRONG TO ASSUME IT'S JUST A CASE OF ADDING FINISHING TOUCHES IN RECENT WEEKS CLINTON OFFICIALS HAVE BEEN PLAYING DOWN THE SIGNIFICANCE OF IMPOSING SANCTIONS IN THE HOPES THAT ANY SANCTIONS WOULDN'T DERAIL OTHER NEGOTIATIONS WITH THE EC MR KANTOR AND SIR LEON SAID THEY HAD MADE PROGRESS ON WORLD TRADE TALK ISSUES INCLUDING TRYING TO DEVISE A PACKAGE OF TARIFF CUTS ON INDUSTRIAL GOODS BUT SIR LEON ADDED THAT SANCTIONS NEVER HELP ANYBODY IN NEGOTIATING A DEAL THE TRADE TALKS ARE BEING HELD UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE MR KANTOR SAID THAT SENIOR TRADE OFFICIALS FROM THE EC AND US WOULD MEET AT LEAST THREE TIMES ON GATT ISSUES BEFORE A SUMMIT OF THE HEADS OF MAJOR INDUSTRIALIZED COUNTRIES IN TOKYO ON JULY 7 THE US HOPES TO COME TO AN AGREEMENT WITH THE EC ON TRADE ISSUES BY THEN SO THEY CAN JOINTLY PRESSURE JAPAN TO MAKE CONCESSIONS IN THE GATT TALKS IN ADDITION PRESIDENT CLINTON IS PRESSING JAPAN TO NEGOTIATE A NEW TRADE AGENDA WITH THE US IN TIME FOR THE SUMMIT 9304210079 930421 HEARD ON THE STREET JEFFERIES AN OBSCURE BROKERAGE FIRM PROSPERS DESPITE SOME CONCERN OVER DEALINGS IN JUNK BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL YESTERDAY'S STOCK MARKET DROP HURT MOST BROKERAGEFIRM SHARES SUCH AS MERRILL LYNCH AND MORGAN STANLEY BUT AS USUAL WALL STREET'S WOES DIDN'T FAZE LESSERKNOWN JEFFERIES GROUP WHICH ROSE 1/4 TO 29 1/4 THE NASDAQTRADED SHARES OF JEFFERIES A LOS ANGELES SECURITIES FIRM WHOSE CHAIRMAN PREDICTS HE WILL REACH THE AGE OF 125 THROUGH HEALTHY LIVING HAVE BEEN CLIMBING STEADILY OUTPACING THE 13 YEARTODATE GAIN IN BROKERAGE STOCKS OVERALL INVESTORS ARE ATTRACTED TO THE FIRM'S RECORD REVENUE AND EARNINGS AND ITS PENCHANT FOR PICKING THE RIGHT BUSINESSES TO EXPLOIT ON A CHANGING WALL STREET YET DESPITE THE STOCK'S GAINS JEFFERIES IS STILL ONE OF WALL STREET'S BESTKEPT SECRETS SOME ANALYSTS AND INVESTORS SAY THE STOCK'S PRICE IS ONLY SEVEN TIMES REPORTED EARNINGS HALF THE LEVEL OF CALIFORNIA BROKERAGE NEIGHBOR CHARLES SCHWAB MOST PEOPLE STILL REMEMBER IT ONLY AS THE FIRM THAT PROSPERED DURING THE 1980S TAKEOVER BOOM BY TRADING HOT BLOCKS OF STOCK ON THE THIRD MARKET OR AWAY FROM TRADITIONAL EXCHANGE FLOORS JEFFERIES WHICH NOW HAS A VARIETY OF COMPLEX BUSINESSES MAY NOT BE FULLY UNDERSTOOD BY THE MARKET THESE DAYS SAYS BROKERAGE ANALYST MICHAEL FLANAGAN OF LIPPER ANALYTICAL SECURITIES CORP WHO HAS JUST BEGUN A STUDY OF THE COMPANY IT'S A COMPANY THAT'S ON THE HORIZON LAST YEAR'S RECORD REVENUE OF 2354 MILLION AND NET INCOME OF 187 MILLION OR 308 A SHARE REPRESENT A HEALTHY RETURN ON EQUITY OF 214 AND WITH EMPLOYEES OWNING CLOSE TO 50 OF THE SHARES OUTSTANDING THE COMPANY HAS EVERY INCENTIVE TO KEEP THE PROFIT MACHINE ROLLING THE COMPANY'S SUCCESS UNDER 56YEAROLD CHAIRMAN FRANK BAXTER IS REMARKABLE CONSIDERING JEFFERIES SEEMED A STEP AWAY FROM SCANDALMARRED OBLIVION JUST A FEW YEARS AGO ITS FOUNDER BOYD JEFFERIES PLEADED GUILTY TO STOCK PARKING IN THE IVAN BOESKY INSIDERTRADING SCANDAL AND LEFT THE FIRM MR BAXTER TOOK OVER AND HAS MANAGED TO MAINTAIN THE FIRM'S CREDIBILITY THE POTENTIAL PROBLEM AT JEFFERIES IS THAT IT IS EXPANDING IN SUCH LUCRATIVE BUT RISKY BUSINESSES AS JUNKBOND TRADING AND UNDERWRITING THE DOWNFALL OF FORMER JUNK BOND POWERHOUSE DREXEL BURNHAM LAMBERT IN FACT A FORMER DREXEL EXECUTIVE DAVID SYDORICK IS A TOP OFFICER AT JEFFERIES RESPONSIBLE FOR JUNKBOND TRADING COMPANY DISCLOSURES SHOW MR SYDORICK WAS REWARDED WITH A NEARLY 36 MILLION BONUS LAST YEAR IN ADDITION TO HIS 500000 SALARY MR BAXTER'S SALARY AND BONUS TOTALED 825000 IS THIS 1980SSTYLE EXCESS NO SAYS MR BAXTER ALL OF OUR COMPENSATION IS PERFORMANCERELATED HE SAYS I WISH WE ALL MADE EXACTLY THE SAME BUT SOMEBODY WHO CAN TRADE HIGHYIELD BONDS IS WORTH MORE IN THE MARKETPLACE THAN SOMEONE WHO CAN MANAGE A FIRM JEFFERIES STILL GETS MOST OF ITS PROFIT FROM ITS TRADITIONAL SPECIALTY EXECUTING DIFFICULT TRADES FOR PROFESSIONAL INVESTORS WHEN INTEL CORP WAS BROADSIDED BY AN UNFAVORABLE COURT RULING LATE FRIDAY JEFFERIES WAS ONE OF THE FIRMS THAT TOOK SELL ORDERS FROM INSTITUTIONAL INVESTORS OVER THE WEEKEND MR BAXTER SAYS HIS FIRM TRADED ONLY 50000 INTEL SHARES WHICH IS A PITTANCE COMPARED WITH THE AFTERHOURS TRADING THAT JEFFERIES DID DURING '80S TAKEOVER FIGHTS STILL WE'LL STEP IN AND GET THINGS GOING WHEN THERE'S AN EVENT HE PROMISES ALL BROKERAGEFIRM STOCKS CAN BE RISKY BETS FOR INVESTORS AND PARTICULARLY SMALLER ONES LIKE JEFFERIES STILL AS A LONGTERM INVESTMENT JEFFERIES COULD BE LIKE OWNING THE CASINO RATHER THAN MERELY ROLLING THE DICE SOME ANALYSTS CAN IMAGINE A DAY WHEN TRADITIONAL MARKETS SUCH AS THE NEW YORK STOCK EXCHANGE WON'T BE AROUND IN THEIR CURRENT FORM BUT HIGHTECH TRADERS LIKE JEFFERIES WHICH RUNS THE ELECTRONIC POSIT SYSTEM WILL JOHN KEEFE AN INDEPENDENT FINANCIALSERVICES ANALYST SAYS MOST OF WALL STREET PROBABLY STILL SEES JEFFERIES AS THIRDMARKET ROGUES BUT HE SAYS JEFFERIES IS ACTUALLY A VERY CEREBRAL COMPANY WITH HIGHTECH TRADING SYSTEMS THAT ARE USED BY THE REAL AVANTGARDE OF INSTITUTIONAL INVESTORS MR BAXTER WHO SAYS HE RISES EACH DAY AT 330 AM PACIFIC TIME IS AMONG THE FEW BROKERAGE HOUSE EXECUTIVES DEVOTED TO AYURVEDIC MEDICINE AN ANCIENT HINDU SYSTEM OF HEALING EXERCISE AND WELLBEING THAT HE SAYS WILL ADD DECADES TO HIS LIFE SPAN BUT AS FOR RUNNING JEFFERIES MR BAXTER SAYS HE FOLLOWS A MORE DOWNTOEARTH CREDO TAPED TO A MIRROR AT HOME THAT HE USES FOR SHAVING IS A PICTURE OF A DINOSAUR WITH A CAPTION ADAPT OR DIE 9304210078 930421 ABREAST OF THE MARKET INDUSTRIAL SHARES RETREAT 2350 AMID PROFITTAKING IN HIGHFLIERS BY DAVE PETTIT AND MARY ROMANO STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK NERVOUS INVESTORS TOOK PROFITS IN HIGHFLYING GROUPS INCLUDING BANKS UTILITIES AND TRANSPORTATION STOCKS SENDING SHARE PRICES SHARPLY LOWER THE SESSION WAS MARKED BY REPEATED WAVES OF COMPUTERGUIDED PROGRAM SELLING THAT WERE TRIGGERED BY SELLING PRESSURE IN THE STOCK INDEX FUTURES MARKET WORRIES WERE HEIGHTENED THERE WHEN THAT MARKET BROACHED SEVERAL TECHNICAL SUPPORT LEVELS DENNIS JARRETT MARKET STRATEGIST AT KIDDER PEABODY SAID PROFITTAKING IN SEVERAL STOCK GROUPS HAD A DIRECT EFFECT ON THE INDUSTRIAL AVERAGE AMONG LOSERS WERE JP MORGAN WHICH LOST 1 1/4 TO 71 7/8 AND GENERAL MOTORS WHICH SLIPPED 1/2 TO 39 1/8 BANKS AND CYCLICAL STOCKS HAVE BEEN LEADERSHIP AREAS A SLIDE IN BOND MARKET PRICES HELPED INSPIRE THE SELLING PARTICULARLY IN FINANCIALRELATED ISSUES THE TREASURY'S 30YEAR BOND ENDED WITH A LOSS OF NEARLY 3/8 LIFTING ITS YIELD TO 675 POSITIVE EARNINGS NEWS FROM SEVERAL BIG BANKS WASN'T ENOUGH TO STEM THE SELLING IN THAT GROUP CITICORP AND CHEMICAL BANKING LOST GROUND EVEN THOUGH BOTH POSTED IMPROVED RESULTS AIRLINE STOCKS SKIDDED FOR A SECOND STRAIGHT SESSION AND WERE JOINED BY SOME TRUCKERS AND RAILROAD SHARES THE DOW JONES TRANSPORTATION AVERAGE PLUMMETED 2216 OR 133 TO 164501 SOUTHWEST AIRLINES LOST 2 TO 39 AND AMR THE PARENT OF AMERICAN AIRLINES FELL 1 3/8 TO 65 1/4 WHILE UNION PACIFIC DECLINED 1 1/8 TO 63 1/8 AND XTRA SLUMPED 1 7/8 TO 98 1/8 FEDERAL EXPRESS FELL 1 3/8 TO 52 THE DOW JONES UTILITY AVERAGE SLIPPED 207 OR 084 TO 24330 THE STANDARD & POOR'S 500 STOCK INDEX DROPPED 236 OR 053 TO 44510 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLID 130 OR 053 TO 24572 BIG BOARD VOLUME MEANWHILE HASN'T BEEN AS ACTIVE AS YESTERDAY SINCE APRIL 2 WHEN 325 MILLION SHARES CHANGED HANDS YESTERDAY'S VOLUME WAS 3171 MILLION THE ECONOMIC NEWS YESTERDAY MORNING WAS WEAK THE COMMERCE DEPARTMENT REPORTED THAT HOUSING STARTS FELL 46 IN MARCH BUILDING PERMITS DROPPED 88 IN THE PERIOD THE BIGGEST FALL IN THAT READING SINCE APRIL 1990 BUT ANALYSTS GENERALLY PLAYED DOWN THE SIGNIFICANCE OF THOSE NUMBERS CITING THE POOR WEATHER CONDITIONS THAT GRIPPED PARTS OF THE NATION LAST MONTH SOME BANK STOCKS FELL DESPITE REPORTING EARNINGS THAT BEAT EXPECTATIONS IN THE FIRST QUARTER CITICORP DROPPED 3/8 TO 28 3/4 IT REPORTED OPERATING NET OF 71 CENTS A SHARE BEFORE AN ACCOUNTING CHANGE FOR THE QUARTER THAT BROUGHT TOTAL NET INCOME TO 138 A SHARE THAT COMPARES WITH 37 CENTS A SHARE IN THE YEAREARLIER PERIOD CHEMICAL BANKING EASED 3/8 TO 40 1/4 THE BANK REPORTED EARNINGS OF 135 A SHARE AGAINST 1 A SHARE CHEMICAL SAID ITS FIRSTQUARTER NET INCLUDES A 35 MILLION OR 14CENTSASHARE ACCOUNTING GAIN AND A 30 MILLION RESTRUCTURING CHARGE A NUMBER OF OTHER STOCKS REACTED AFTER REPORTING FIRSTQUARTER EARNINGS AMONG THE GAINERS STANDARD PACIFIC JUMPED 1/2 TO 7 3/8 AFTER THE HOME BUILDER REPORTED FIRSTQUARTER NET INCOME OF SEVEN CENTS A SHARE COMPARED WITH SIX CENTS A YEAR EARLIER THE LATEST QUARTER INCLUDES A NONRECURRING GAIN OF THREE CENTS HUMANA ADDED 3/8 TO 7 5/8 THE HOSPITAL OPERATOR AND HEALTH PLAN PROVIDER SAID FIRSTQUARTER NET INCOME WAS 11 CENTS A SHARE UP FROM TWO CENTS A YEAR AGO SHELTER COMPONENTS GAINED 1 TO 14 7/8 ON THE AMERICAN STOCK EXCHANGE A WHOLESALE DISTRIBUTOR OF PARTS AND TOOLS USED IN MANUFACTURED HOUSING SHELTER REPORTED FIRSTQUARTER NET INCOME OF 34 CENTS A SHARE COMPARED WITH 17 CENTS A YEAR EARLIER SHARES OF CHEMICAL WASTE MANAGEMENT HOWEVER LOST 1 5/8 TO 12 7/8 ON NEWS OF LOWER EARNINGS DRUG STOCKS WERE STRONG AGAIN MERCK WHICH JUMPED 1 7/8 ON MONDAY PARTLY BECAUSE OF A POSITIVE EARNINGS REPORT ADVANCED 1 5/8 TO 37 1/2 WHILE BRISTOLMYERS SQUIBB GAINED 1 3/8 TO 62 JOHNSON & JOHNSON ROSE 1 TO 42 1/2 AND PFIZER CLIMBED 3 1/4 TO 65 1/8 NEW YORKBASED PFIZER RELEASED ONTARGET FIRSTQUARTER EARNINGS OF 101 A SHARE IT HAD EARNINGS FROM OPERATIONS OF 88 CENTS IN THE YEARAGO PERIOD VENTURE STORES PLUMMETED 4 5/8 TO 16 5/8 THE O'FALLON MOBASED RETAILER SAID IT EXPECTS TO EARN MUCH LESS THAN ANALYSTS' ESTIMATES OF 25 CENTS TO 34 CENTS A SHARE IN THE FIRST QUARTER WHICH ENDS MAY 1 THE COMPANY ESTIMATED EARNINGS OF FOUR CENTS TO EIGHT CENTS A SHARE COMPARED WITH 33 CENTS A SHARE IN THE 1992 FIRST QUARTER GREYHOUND LINES JUMPED 1 3/8 TO 19 3/8 ON THE AMERICAN STOCK EXCHANGE FOLLOWING THE NEWS THAT THE NATIONWIDE BUS SERVICE COMPANY AND THE AMALGAMATED TRANSIT UNION AGREED TO SETTLE THEIR BITTER THREEYEAROLD STRIKE BY REACHING A TENTATIVE SIXYEAR PACT TRANSAMERICA LOST 1 1/2 TO 52 5/8 DESPITE NEWS THAT IT RAISED 1 BILLION IN AN INITIAL PUBLIC OFFERING THAT ALLOWED IT TO SHED ITS PROPERTY AND CASUALTY INSURANCE UNIT A TOTAL OF 442 MILLION SHARES PRICED AT 2263 EACH WERE SOLD IN ONE OF THE LARGEST OFFERINGS IN US HISTORY OF THAT NUMBER 304 MILLION WERE SOLD BY TRANSAMERICA WHICH REAPED ABOUT 688 MILLION TIG HOLDINGS THE NEW COMPANY THAT BEGAN TRADING ON THE BIG BOARD YESTERDAY WAS UNCHANGED AT 24 3/8 AVNET GAINED 5/8 TO 31 3/8 THE GREAT NECK NYBASED ELECTRONIC PARTS DISTRIBUTOR HAS AGREED TO ACQUIRE HALLMARK ELECTRONICS IN A CASH AND STOCK TRANSACTION VALUED AT 485 MILLION 9304210077 930421 BUSINESS BRIEF CORESTATES FINANCIAL CORP PHILADELPHIA CONCERN SWINGS TO PROFIT FOR FIRST QUARTER CORESTATES FINANCIAL CORP SAID FIRSTQUARTER NET INCOME WAS 733 MILLION OR 125 A SHARE AGAINST A YEAREARLIER LOSS TIED TO AN 81 MILLION CHARGE FOR ACCOUNTING CHANGES A YEAR EARLIER THE PHILADELPHIA COMMERCIAL BANKING COMPANY REPORTED A LOSS OF NEARLY 22 MILLION OR 38 CENTS A SHARE AFTER THE CHARGE REFLECTING THE ADOPTION OF THE NEW ACCOUNTING STANDARD FOR POSTRETIREMENT HEALTH BENEFITS BEFORE THE CHARGE CORESTATES HAD PROFIT IN THE 1992 FIRST QUARTER OF 59 MILLION OR 103 A SHARE CORESTATES WHICH HAD ASSETS OF 229 BILLION AS OF MARCH 31 ATTRIBUTED ITS IMPROVED EARNINGS TO STRONG NET INTEREST MARGIN INCREASES IN SOME OF ITS FEEBASED SERVICES AND EXPENSE CONTROLS THE COMPANY'S NET INTEREST MARGIN FOR THE QUARTER WS 584 UP 12 BASIS POINTS FROM THE PREVIOUS QUARTER AND 27 BASIS POINTS FROM THE YEAREARLIER QUARTER 9304210076 930421 BUSINESS BRIEF GTECH HOLDINGS CORP FISCAL FOURTHQUARTER PROFIT JUMPS ON 33 REVENUE GAIN GTECH HOLDINGS CORP BOOSTED BY NEW ONLINE LOTTERY CONTRACTS AND THE SPREAD OF ITS KENO LOTTERY GAMES POSTED A SHARP RISE IN PROFIT AND A 33 RISE IN REVENUE FOR THE FISCAL FOURTH QUARTER ENDED FEB 27 1993 THE WEST GREENWICH RI LOTTERY SERVICES AND EQUIPMENT COMPANY REPORTED FOURTHQUARTER NET INCOME OF 82 MILLION OR 19 CENTS A SHARE ON REVENUE OF 1381 MILLION COMPARED WITH NET OF 22 MILLION OR SIX CENTS A SHARE ON REVENUE OF 1042 MILLION IN THE YEARAGO QUARTER SEPARATELY THE COMPANY ANNOUNCED IT HAS WON A FIVEYEAR CONTRACT TO SUPPLY AND OPERATE THE GEORGIA LOTTERY WITH BOTH AUTOMATED SCRATCH CARD SYSTEMS AND ONLINE SYSTEMS THE VALUE OF THE CONTRACT WHICH BEGINS IN JULY WAS NOT DISCLOSED FOR THE YEAR GTECH REPORTED NET OF 217 MILLION OR 53 CENTS A SHARE WHICH INCLUDED AN EXTRAORDINARY CHARGE OF 185 MILLION FOR EARLY RETIREMENT OF DEBT FROM THE COMPANY'S INITIAL PUBLIC OFFERING IN JULY 1992 AND A 24 MILLION CREDIT FROM AN ACCOUNTING CHANGE FOR INCOME TAXES IN ITS PREVIOUS FISCAL YEAR GTECH HAD NET OF 139 MILLION OR 38 CENTS A SHARE 9304210075 930421 BUSINESS BRIEF POLAROID CORP INSTANTPHOTOGRAPHY FIRM REPORTS FIRSTQUARTER LOSS POLAROID CORP POSTED A FIRSTQUARTER LOSS OF 1228 MILLION OR 263 A SHARE VS THE YEARAGO PERIOD CITING 1593 MILLION IN CHARGES RELATED TO WORKFORCE CUTS AND AN ACCOUNTING CHANGE PLUS HIGH STARTUP COSTS FOR NEW PRODUCTS IN THE YEARAGO QUARTER THE CAMBRIDGE MASS COMPANY HAD NET INCOME OF 62 MILLION OR 13 CENTS A SHARE SALES FOR THE QUARTER ENDED APRIL 4 ROSE 86 TO 4685 MILLION FROM 4313 MILLION EXCLUDING THE CHARGES THE INSTANTPHOTOGRAPHY COMPANY SAID PROFIT FROM OPERATIONS WAS 137 MILLION COMPARED WITH 268 MILLION IN THE YEARAGO QUARTER NET INCOME WOULD HAVE BEEN 29 MILLION OR SIX CENTS A SHARE POLAROID SAID IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY POLAROID CLOSED AT 29 UP 75 CENTS 9304210074 930421 ECONOMY HOUSING STARTS FELL 46 LAST MONTH BAD WEATHER CITED BY IAN OLGEIRSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HOMEBUILDING WAS BURIED UNDER SLEET AND SNOW IN MUCH OF THE COUNTRY LAST MONTH HOUSING STARTS DROPPED 46 LAST MONTH THE COMMERCE DEPARTMENT SAID AFTER RISING A REVISED 15 IN FEBRUARY THE DEPARTMENT SAID WORK WAS BEGUN ON NEW HOUSES LAST MONTH AT AN ANNUAL RATE OF 1134000 DOWN FROM 1189000 THE MONTH BEFORE THE FIGURES ARE ADJUSTED FOR SEASONAL CHANGES ECONOMISTS ATTRIBUTE THE DECLINE TO NASTIERTHANUSUAL WINTER WEATHER WHEN YOU LOCK PEOPLE IN THEIR HOMES FOR A WEEKEND OR A WEEK YOU'RE GOING TO SEE DECLINES SAID DAVID LEREAH CHIEF ECONOMIST FOR THE MORTGAGE BANKERS ASSOCIATION OF AMERICA SINGLEFAMILY STARTS SHRANK 45 TO A 993000 ANNUAL RATE THE THIRD DECLINE IN A ROW MULTIUNIT BUILDING WAS MIXED STARTS WITH TWO TO FOUR UNITS ROSE 296 WHILE THOSE WITH FIVE OR MORE UNITS FELL 131 THE DROP IN STARTS REINFORCES THE PICTURE OF A FIRSTQUARTER HOMEBUILDING SLUMP IN WHICH THE ANNUAL RATE HAS BEEN BELOW 12 MILLION UNITS EVERY MONTH DESPITE THE LOWEST MORTGAGE RATES IN 20 YEARS MR LEREAH SAID THAT OTHER FACTORS COMBINED WITH THE WEATHER TO KEEP BUILDING SLOW LOW INTEREST RATES ARE NOT THE ONLY GAME IN TOWN YOU NEED EMPLOYMENT AND SALARY GAINS TO GO ALONG WITH THAT MR LEREAH SAID HE ALSO ATTRIBUTED SOME OF THE DECLINE TO DROOPING CONSUMER CONFIDENCE SUPPORTING CLAIMS OF A WEATHERRELATED SLOWDOWN STARTS IN THE STORMY NORTHEAST RECORDED A 268 DIVE WHILE THE MILDER CONDITIONS OF THE WEST ALLOWED A 179 INCREASE STARTS IN THE SOUTH FELL 5 AND THOSE IN THE MIDWEST DECLINED 139 PERMITS FOR FUTURE CONSTRUCTION FELL 88 IN MARCH THE LARGEST DROP IN THREE YEARS THE ANNUAL RATE FELL TO 1038000 FROM 1138000 IN FEBRUARY TO THE EXTENT THAT IT WAS WEATHER IMPACTED THINGS SHOULD PICK UP WITH THE SPRING THAW SAID DONALD MAUDE THE CHIEF US STRATEGIST FOR SCOTIAMCLEOD A TORONTO INVESTMENT FIRM HOWEVER HE WARNED THAT THE DROP IN PERMITS COULD SIGNAL STUNTED GAINS IN NEW STARTS IN THE COMING MONTHS 9304210073 930421 BUSINESS BRIEF MIDLAND WALWYN CAPITAL INC VENTURE WITH PIPER JAFFRAY TO DEVELOP MUTUAL FUNDS MIDLAND WALWYN CAPITAL INC AND PIPER JAFFRAY INC PLAN TO JOINTLY DEVELOP AND MARKET A NEW GROUP OF INTERNATIONAL MUTUAL FUNDS IN WHAT APPEARS TO BE THE FIRST PARTNERSHIP OF ITS KIND BETWEEN CANADIAN AND US INVESTMENT DEALERS MIDLAND A TORONTOBASED INVESTMENT DEALER AND PIPER BASED IN MINNEAPOLIS HOPE TO ATTRACT BETWEEN 400 MILLION AND 600 MILLION IN INVESTMENT CAPITAL TO THE FUNDS IN THE FIRST YEAR OF OPERATION EDWARD KOHLER PRESIDENT OF PIPER CAPITAL MANAGEMENT INC A UNIT OF PIPER JAFFRAY SAID THE FUNDS TO BE ESTABLISHED LIKELY WILL INCLUDE EUROPEAN PACIFIC RIM LATIN AMERICAN AND NORTH AMERICAN EQUITY FUNDS IN ADDITION HE SAID THE PARTNERS WILL OFFER A GLOBAL FIXED INCOME FUND AND A SHORTTERM FIXED INCOME FUND WHICH WILL PROVIDE A YIELD HIGHER THAN THAT SEEN BY MOST MONEY MARKET FUNDS PETER WALLACE PRESIDENT OF MIDLAND SAID THAT THE JOINT VENTURE COMPANY IS CLOSE TO HIRING SIX OR SEVEN MONEY MANAGERS TO RUN THE NEW FUNDS PIPER AND MIDLAND NOW SERVE ABOUT 500000 CLIENTS IN CANADA AND THE US 9304210072 930421 IBM POSTS LOSS OF 285 MILLION FOR FIRST PERIOD MAINFRAME SALES PLUNGED FIRM DOESN'T EXPECT A QUICK TURNAROUND BY MICHAEL W MILLER STAFF REPORTER OF THE WALL STREET JOURNAL STILL REELING FROM THE COLLAPSE OF ITS MAINFRAME COMPUTER BUSINESS INTERNATIONAL BUSINESS MACHINES CORP REPORTED A FIRSTQUARTER LOSS OF 285 MILLION AND SAID A TURNAROUND IS STILL NOWHERE IN SIGHT THE RESULTS WHICH INCLUDE THE SECOND QUARTERLY OPERATING LOSS IN IBM'S HISTORY WERE WIDELY EXPECTED BUT THE BLEAK DETAILS OF IBM'S MOST CRUCIAL COMPUTER MARKETS LED SEVERAL ANALYSTS TO SLASH THEIR 1993 ESTIMATES WITH MANY PREDICTING THE COMPANY WOULD ONLY BREAK EVEN FOR THE YEAR IBM SAID ITS ONCEINDOMITABLE MAINFRAME BUSINESS SAW SALES PLUNGE BY A STAGGERING HIGH DOUBLE DIGIT PERCENTAGE IT SAID MINICOMPUTER SALES ALSO FELL BY MORE THAN 10 DESPITE IBM'S RECENT PROMISE OF A REBOUND IN THAT GIANT MARKET OVERALL REVENUE FELL 7 TO 1306 BILLION FROM 1404 BILLION THE NET LOSS WHICH AMOUNTED TO 50 CENTS A SHARE COMPARES WITH A PROFIT OF 254 BILLION OR 445 PER SHARE IN THE YEAREARLIER QUARTER WHICH INCLUDED A LARGE GAIN FROM AN ACCOUNTING CHANGE IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE THE COMPANY'S SHARES WERE QUOTED AT 50625 UP 1375 REFLECTING RELIEF THAT THE FIRSTQUARTER LOSS WASN'T EVEN DEEPER ANALYSTS SAID THE STOCK IS ESSENTIALLY ON HOLD HOVERING BETWEEN THE LOW 40S AND THE MID50S WHILE WALL STREET WAITS FOR IBM'S NEW CHAIRMAN LOUIS V GERSTNER JR TO TAKE ACTION YESTERDAY IBM TREASURER ROBERT RIPP SAID MR GERSTNER PROBABLY WON'T EMERGE WITH A NEW PLAN FOR IBM UNTIL JUNE OR JULY MR GERSTNER WILL MAKE HIS PUBLIC DEBUT AS IBM'S CHAIRMAN AT ITS ANNUAL MEETING IN TAMPA FLA NEXT WEEK BUT HE ISN'T EXPECTED TO UNVEIL ANY MAJOR TURNAROUND PLANS IBM HAD BRIGHTER NEWS IN PERSONAL COMPUTERS WORKSTATIONS AND SERVICES ALL OF WHICH SHOWED SOLID GAINS IT SAID IT POSTED AN UNSPECIFIED PROFIT IN THE CUTTHROAT PC MARKET WITH SHIPMENTS RISING 40 IN THE QUARTER REVENUE FROM SERVICES SUCH AS RUNNING OTHER COMPANIES' COMPUTERS LEAPT 48 TO 191 BILLION FROM 129 BILLION IN A STATEMENT MR GERSTNER SINGLED THESE MARKETS OUT AS KEY GROWTH SEGMENTS OF OUR INDUSTRY BUT THEY ALSO HAVE SOME OF IBM'S TIGHTEST PROFIT MARGINS EVERYTHING THAT'S GROWING HAS LOW GROSS MARGINS AND EVERYTHING UNDER PRESSURE HAS HIGH GROSS MARGINS SAID DEAN WITTER ANALYST JAY STEVENS ALL IBM'S PHYSICAL PLANT AND INFRASTRUCTURE WAS DESIGNED TO BE SUPPORTED BY MUCH HIGHER MARGINS OVERALL IBM'S HARDWARE MARGINS ARE IN NEAR FREE FALL DROPPING TO 29 IN THE FIRSTQUARTER FROM 48 A YEAR AGO MR STEVENS SAID HE'S BETTING MR GERSTNER WILL SLASH IBM'S QUARTERLY DIVIDEND IN THE FALL FROM 54 CENTS TO 25 CENTS PER SHARE THE MAINSTAY OF MILLIONS OF INVESTORS' FINANCES IBM'S DIVIDEND HAS ALREADY FALLEN THIS YEAR FROM 121 PER QUARTER ASKED ABOUT THE FUTURE OF IBM'S DIVIDEND A COMPANY SPOKESMAN SAID THE BOARD LOOKS AT IT VERY CAREFULLY EACH QUARTER HIS RESPONSE STOPPED WELL SHORT OF THE ASSURANCE IBM USED TO GIVE IN BETTER TIMES THAT ITS DIVIDEND WOULD NEVER BE CUT SPEAKING OF IBM'S OVERALL OUTLOOK THE SPOKESMAN SAID THE ENVIRONMENT REMAINS HIGHLY VOLATILE THERE ARE NO INDICATIONS OF AN IMMINENT TURNAROUND IBM SAID ITS OPERATING EXPENSES FELL 89 TO 543 BILLION FROM 597 BILLION BUT FIRST BOSTON CORP ANALYST CURT ROHRMAN SUGGESTED THE DROP PARTLY REFLECTED IBM'S SURGING SALES OF PCS WHICH OFTEN GO THROUGH DEALERS AND DON'T REQUIRE BIG COMMISSIONS TO IBM'S SALES FORCE IT LOOKS TO ME LIKE THEY'RE TREADING WATER AT BEST HE SAID ASSESSING IBM'S EFFORTS TO CUT COSTS MR GERSTNER IS WIDELY EXPECTED TO TAKE AGGRESSIVE NEW STEPS TO HACK AWAY AT IBM'S OVERHEAD IBM HAS ALREADY SAID IT WILL CUT ITS WORK FORCE ABOUT 300000 AT YEAR END BY MORE THAN 25000 PEOPLE THIS YEAR SALOMON BROTHERS INC ANALYST JOHN JONES SAID YESTERDAY THAT IBM WILL PROBABLY NEED TO CUT CLOSER TO 35000 EMPLOYEES IN 1993 WHICH HE SAID WOULD REQUIRE A CHARGE AGAINST EARNINGS OF ABOUT 1 BILLION AT LEAST FOUR ANALYSTS CUT THEIR IBM EARNINGS ESTIMATES YESTERDAY ALL CITING THE MOUNTING PRESSURE IN THE MAINFRAME BUSINESS AT MERRILL LYNCH & CO DANIEL MANDRESH CLIPPED HIS ESTIMATED 1993 EARNINGS TO BREAKEVEN FROM 70 CENTS A SHARE PREDICTING A SAVAGE MAINFRAME PRICE WAR ACCORDING TO A NEW SURVEY OF MAINFRAME CUSTOMERS' 1993 PURCHASING PLANS IBM FACES A 2 LOSS IN MAINFRAME MARKET SHARE AND A 4 LOSS IN THE LUCRATIVE MARKET FOR MAINFRAME DISK DRIVES THE SURVEY BY GARTNER GROUP ALSO FOUND THAT OVERALL DEMAND FOR MAINFRAMES IS SURPRISINGLY STRONG WITH CUSTOMERS PREDICTING A 6 RISE IN THEIR HARDWARE BUDGET UP FROM 4 IN 1992 THE GENERAL MAINFRAME MARKET IS NOT AS SICK AS IBM'S RESULTS MAY INDICATE THE SURVEY CONCLUDED IBM MAY BE MORE AFFECTED BY IBM ISSUES THAN BY GENERIC INDUSTRY ISSUES 9304210071 930421 BUSINESS BRIEF BECTON DICKINSON & CO SECONDPERIOD NET ROSE 14 AS SALES INCREASED BY 35 BECTON DICKINSON & CO REPORTED A 14 INCREASE IN FISCAL SECONDQUARTER EARNINGS ATTRIBUTABLE TO NONOPERATING INCOME AND LOWER INCOME TAXES OPERATING PROFIT WAS DOWN 87 FOR THE FRANKLIN LAKES NJ MEDICAL SUPPLY AND DIAGNOSTIC SYSTEMS COMPANY IN ADDITION SALES GROWTH HURT BY A STRONG DOLLAR WAS 35 BECTON DICKINSON POSTED NET INCOME OF 59 MILLION OR 76 CENTS A SHARE FOR THE QUARTER ENDED MARCH 31 COMPARED WITH 52 MILLION OR 67 CENTS A SHARE IN THE YEARAGO QUARTER SALES WERE 613 MILLION COMPARED WITH 592 MILLION A YEAR AGO THE STRONG DOLLAR'S EFFECT ON FOREIGN CURRENCY TRANSLATIONS REDUCED SALES BY 17 MILLION IN THE RECENT QUARTER BECTON DICKINSON SAID FOR THE SIX MONTHS EARNINGS ROSE 15 TO 846 MILLION OR 108 A SHARE WHILE SALES OF 117 BILLION WERE UP 7 OPERATING PROFIT ROSE 13 9304210070 930421 BUSINESS BRIEF AST RESEARCH INC COMPUTER CONCERN'S PROFIT FELL 34 IN FISCAL 3RD PERIOD AST RESEARCH INC SAID ITS FISCAL THIRDQUARTER PROFIT FELL 34 THE IRVINE CALIF COMPANY SAID IT EARNED 11 MILLION OR 35 CENTS A SHARE IN THE PERIOD ENDING APRIL 3 COMPARED WITH 167 MILLION OR 53 CENTS A SHARE IN THE YEARAGO QUARTER WHICH ENDED MARCH 27 SALES JUMPED 53 TO 3703 MILLION FROM 2416 MILLION PERSONAL COMPUTER SHIPMENTS ROSE 70 IN THE QUARTER MAINLY BECAUSE OF DEMAND FOR MACHINES BASED ON INTEL CORP'S 486 MICROPROCESSOR MARKETSHARE ADVANCES CAME AT THE EXPENSE OF NET PROFIT MARGINS WHICH FELL TO 3 IN THE QUARTER FROM 69 THE YEAR BEFORE FOR THE NINE MONTHS AST REPORTED PROFIT OF 333 MILLION OR 105 A SHARE ON SALES OF 1 BILLION FOR THE YEARAGO NINE MONTHS IT EARNED 499 MILLION OR 157 A SHARE ON SALES OF 6778 MILLION THE EARNINGS ANNOUNCEMENT CAME AFTER THE CLOSE OF TRADING YESTERDAY AST'S STOCK ROSE 25 CENTS TO 1350 A SHARE IN COMPOSITE TRADING ON THE NATIONAL OVERTHECOUNTER MARKET 9304210069 930421 BUSINESS BRIEF PFIZER INC FIRM POSTS MUCH HIGHER NET OF 329 MILLION FOR 1ST PERIOD PFIZER INC'S FIRSTQUARTER EARNINGS WERE MUCH HIGHER THAN THE 1992 QUARTER'S WHICH INCLUDED A BIG ONETIME CHARGE FOR NEW ACCOUNTING RULES ON RETIREE BENEFITS AND INCOME TAXES BUT EVEN WITH THE CHARGE ASIDE EARNINGS FROM CONTINUING OPERATIONS WERE UP A STRONG 25 DRIVEN BY STRONG PRESCRIPTION DRUG SALES GROWTH ALTHOUGH THE RESULTS WERE IN LINE WITH WALL STREET EXPECTATIONS NEW YORKBASED PFIZER'S SHARES JUMPED 325 YESTERDAY CLOSING AT 65125 IN HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING OF NEARLY 37 MILLION SHARES FIRSTQUARTER NET INCOME WAS 329 MILLION OR 101 PER SHARE COMPARED WITH 148 MILLION OR FOUR CENTS A SHARE IN THE 1992 QUARTER WHICH INCLUDED A CHARGE OF 2974 MILLION OR 88 CENTS A SHARE FOR ACCOUNTING CHANGES SALES WERE 187 BILLION UP 6 FROM 176 BILLION EXCLUDING BUSINESSES THAT WERE SOLD AND CLOSED RESTRUCTURING CHARGES AND UNUSUAL ITEMS SALES FROM CONTINUING OPERATIONS INCREASED 15 IN THE FIRST QUARTER WHILE EARNINGS PER SHARE FROM CONTINUING OPERATIONS ROSE 29 VIRTUALLY ALL OF THE SALES GROWTH WAS FROM INCREASED VOLUME ACCORDING TO THE COMPANY 9304210068 930421 BUSINESS BRIEF SUN MICROSYSTEMS INC WORKSTATION MAKER'S PROFIT DECLINED 16 IN 3RD QUARTER SUN MICROSYSTEMS INC'S EARNINGS FOR THE FISCAL THIRD QUARTER ENDED MARCH 28 FELL 16 IN RESPONSE TO WEAKENING OVERSEAS DEMAND A LESS PROFITABLE PRODUCT MIX AND STIFFER COMPETITION IN THE US THE MOUNTAIN VIEW CALIF MAKER OF COMPUTER WORKSTATIONS LATE YESTERDAY POSTED NET INCOME OF 517 MILLION OR 47 CENTS A SHARE DOWN FROM 614 MILLION OR 60 CENTS A SHARE A YEAREARLIER REVENUE ROSE 20 TO 114 BILLION FROM 952 MILLION THE RESULTS WERE VERY DISAPPOINTING SAID JEFF CANIN AN ANALYST AT SOLOMON BROTHERS COMPETITION IS CLEARLY TAKING A TOLL MR CANIN HAS CUT HIS FULLYEAR EARNINGS ESTIMATE FOR SUN TO 135 A SHARE FROM 142 A SHARE IN FISCAL 1992 SUN EARNED 171 A SHARE SUN BLAMED THE LOWER EARNINGS ON WEAK MARKETS IN GERMANY FRANCE AND ITALY AND LOWER GROSS MARGINS IT SAID ITS MARGINS FELL TO 402 IN THE THIRD QUARTER FROM 466 A YEAR EARLIER THE COMPANY SAID IT IS CONTINUING TO REDUCE OPERATING EXPENSES AND WILL TODAY ANNOUNCE A 20 PRICE CUT ON ITS HIGHEND LINE OF WORKSTATIONS FOR THE NINE MONTHS SUN'S NET FELL 40 TO 806 MILLION OR 77 CENTS A SHARE FROM 1356 MILLION OR 134 A SHARE REVENUE ROSE 17 TO A RECORD 305 BILLION FROM 262 BILLION 9304210067 930421 CREDIT MARKETS CALIFORNIA NOTE SALE RECEIVES AMPLE DEMAND DESPITE WORRIES OF ANOTHER STATE BUDGET CRISIS BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DESPITE WORRIES THAT IT MAY FACE ANOTHER BUDGET CRISIS THE STATE OF CALIFORNIA FOUND MORE THAN ENOUGH BUYERS YESTERDAY FOR A 3 BILLION OFFERING OF REVENUE ANTICIPATION NOTES BUT THE STORM CLOUDS ARE GATHERING FOR THE STATE AS CONCERNS ABOUT ANOTHER SUMMER FISCAL CRISIS GROW SAID THE STATE'S TREASURER KATHLEEN BROWN ACCORDING TO THE TREASURER'S OFFICE THE STATE RECEIVED ABOUT 5 BILLION IN BIDS FOR THE OFFERING WHICH WAS THE LARGEST IN THE MUNICIPAL MARKET SO FAR THIS YEAR NEARLY A THIRD OF THE NOTES OR 900 MILLION WENT TO SMALL INVESTORS WITH THE REST GOING INTO INSTITUTIONAL ACCOUNTS LIKE MUNICIPAL MONEY MARKET FUNDS ACCORDING TO THE TREASURER'S OFFICE ACCORDING TO CASEY COLTON A MUNICIPAL FUND MANAGER WITH BENHAM GROUP MOST OF THE INTEREST MAY HAVE COME FROM INVESTORS LOOKING TO ROLL OVER SOME 2 BILLION IN OTHER SHORTTERM CALIFORNIA NOTES WHICH MATURE THIS MONTH MEANWHILE MOST TREASURY SECURITIES ENDED NARROWLY MIXED HOWEVER THE BENCHMARK 30YEAR BOND DROPPED NEARLY 3/8 POINT OR 375 FOR A BOND WITH A 1000 FACE AMOUNT TO 104 25/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE ROSE TO 675 FROM 672 ON MONDAY THE CALIFORNIA RANS YIELDED 250 AT THE LOW END OF EXPECTATIONS CARRY A 3 COUPON AND MATURE ON JUNE 24 THANKS IN PART TO AN INNOVATIVE STANDBY PURCHASE AGREEMENT ARRANGED WITH FOUR WALL STREET SECURITIES FIRMS THE STATE GARNERED HIGH CREDIT RATINGS FOR THE ISSUE MOODY'S INVESTORS SERVICE INC GAVE THE ISSUE A TOP RATING OF MIG1 AND STANDARD & POOR'S CORP ASSIGNED IT AN SP1 RATING ONE NOTCH BELOW THE AGENCY'S HIGHEST RATING IN MAKING THE 5 BILLION AGREEMENT JP MORGAN SECURITIES INC LEHMAN BROTHERS GOLDMAN SACHS & CO AND MERRILL LYNCH & CO AGREED TO BID ON THE NOTES AND ON AS MUCH AS 2 BILLION OF REVENUE ANTICIPATION WARRANTS TO BE SOLD WHEN THE RANS MATURE IN JUNE THE AGREEMENT ENSURED THAT BOTH SALES GO SMOOTHLY EVEN IF THE STATE ENCOUNTERS ANOTHER BUDGET CRISIS REVENUE ANTICIPATION NOTES ARE SHORTTERM DEBT ISSUES OF A MUNICIPAL ENTITY THAT ARE REPAID OUT OF ANTICIPATED REVENUES SUCH AS SALES TAXES AND MUST BE REDEEMED IN THE SAME FISCAL YEAR IN WHICH THEY ARE ISSUED WHEN THE TAXES ARE COLLECTED THE RAN IS PAID OFF REVENUE ANTICIPATION WARRANTS CAN BE REDEEMED IN A DIFFERENT FISCAL YEAR THE STANDBY AGREEMENT IN ITSELF WAS A SIGN THAT EVEN AS SOME INVESTORS ARE WORRIED ABOUT CALIFORNIA CERTAIN WALL STREET SECURITIES FIRMS ARE VERY INTERESTED IN GENERATING SOME GOODWILL IN THE STATE IN NEGOTIATING THEIR AGREEMENTS WITH THE STATE THE FOUR FIRMS WAIVED THEIR FEES AND EACH CHARGED THE STATE JUST 1 FOR THE AGREEMENT ACCORDING TO THE TREASURER'S OFFICE BANKS WANTED TO CHARGE 320000 FOR SUCH AN AGREEMENT FOR A 475 MILLION REVENUE ANTICIPATION WARRANT OFFERING LAST YEAR ACCORDING TO AN OFFICIAL AT MERRILL LYNCH THE AGREEMENT MARKED THE FIRST TIME THE FIRM HAD EVER ENTERED INTO A STANDBY PURCHASE AGREEMENT BY GIVING THE STATE THIS VIRTUALLY FREE GUARANTEE SAY CALIFORNIA STATE FINANCIAL OFFICIALS THE UNDERWRITERS ARE PUTTING THEMSELVES IN A GOOD POSITION FOR FUTURE DEBT OFFERINGS OR OTHER BUSINESS WITH THE STATE CALIFORNIA IS ONE OF THE NATION'S BIGGEST ISSUERS OF MUNICIPAL DEBT THE STATE SOLD OVER 3 BILLION OF LONGTERM DEBT MATURING IN ONE YEAR OR LONGER IN 1992 SECOND ONLY TO NEW YORK CITY AND ALL MUNICIPAL ENTITIES WITHIN THE STATE SOLD A TOTAL OF 406 BILLION OF DEBT OF ALL MATURITIES IN 1992 THE MOST OF ANY STATE ACCORDING TO SECURITIES DATA CO PROCEEDS FROM YESTERDAY'S OFFERING WHICH WAS PRICED BY A GROUP OF UNDERWRITERS LED BY LEHMAN BROTHERS WILL BE USED TO FINANCE CASH FLOW IMBALANCES IN CALIFORNIA'S GENERAL FUND FOR THE REST OF THE STATE'S FISCAL 1993 WHICH ENDS JUNE 30 AND HELP FUND THE REPAYMENT OF 25 BILLION OF 199293 RANS THAT MATURE ON MAY 12 WHEN THE MAY RANS WERE SOLD LAST SEPTEMBER THEY WERE GIVEN A YIELD OF 285 WHILE YESTERDAY'S OFFERING MAY HAVE SEEMED SMOOTH ON THE SURFACE SAID MS BROWN IT WAS NOT AN EASY SELL FOR THE FIRST TIME WE CAN SEE THAT STORM CLOUDS ARE GATHERING AS THE MARKET BEGINS TO REGISTER ITS CONCERNS ABOUT THE FREQUENCY OF OUR BORROWING THE ONGOING UNCERTAINTY ABOUT THE BUDGET PROCESS AND THE STATE OF OUR CREDIT ACCORDING TO THE CALIFORNIA CONTROLLER'S OFFICE THE STATE MAY BE FACING A BUDGET GAP AS BIG AS 9 BILLION OVER THE CURRENT AND NEXT FISCAL YEARS MORE THAN 1 BILLION OF OTHER MUNICIPAL BONDS WERE PRICED YESTERDAY AS WELL AS CITIES AND STATES RUSHED TO TAKE ADVANTAGE OF THE CONTINUED DECLINE IN US INTEREST RATES SECONDARY MUNICIPAL ISSUES ENDED 1/4 POINT LOWER TO 1/4 POINT HIGHER IN LATE TRADING THE MASSACHUSETTS HEALTH & EDUCATIONAL FACILITIES AUTHORITY'S 5375 COUPON REVENUE BONDS MATURING IN 2023 HOWEVER ENDED UNCHANGED AT 94 1/2 TO YIELD 572 AMONG THE OTHER ISSUES PRICED YESTERDAY WERE THE MASSACHUSETTS WATER RESOURCES AUTHORITY'S 5049 MILLION OF GENERAL REVENUE REFUNDING BONDS AND THE FLORIDA BOARD OF EDUCATION'S 362 MILLION OF PUBLIC EDUCATION CAPITAL OUTLAY REFUNDING BONDS THE TREASURY MARKET WAS QUIET SAVE FOR BRIEF SELLING BOUTS BY SEVERAL DEALERS TRYING TO OFFSET POTENTIAL LOSSES FROM A NEW BOND OFFERING THE MARKET PRACTICALLY IGNORED REPORTS SHOWING A DROP IN HOUSING STARTS AND RETAIL SALES DURING YESTERDAY'S TRADING TWOYEAR AND FIVEYEAR NOTES FOR EXAMPLE NEVER VENTURED OUTSIDE A 1/8 POINT PRICE RANGE THE 30YEAR BOND HOWEVER SANK EARLY AND REMAINED NEAR ITS LOW FOR THE DAY AS THE 30YEAR TREASURY BOND DROPPED NEARLY 3/8 POINT AND THE 10YEAR NOTE DROPPED 1/32 POINT MANY OTHER SECURITIES WERE UNCHANGED THE FIVEYEAR NOTE FOR EXAMPLE ENDED UNCHANGED AT 100 10/32 TO YIELD 504 THE 10YEAR NOTE TRADED IN A WIDER RANGE THAN DID OTHER NOTES BUT RETURNED TO NEAR UNCHANGED BY THE END OF THE DAY DEALERS WHO HAD UNDERWRITTEN A 1 BILLION EUROBOND OFFERING BY ABBEY NATIONAL PLC A FINANCIAL SERVICE BANK IN THE UNITED KINGDOM UNLOADED SOME 10YEAR NOTES AS A HEDGE AGAINST THE DEAL WHICH WAS PRICED WITH THE US 10YEAR NOTE AS A BENCHMARK A EUROBOND IS A DEBT SECURITY THAT IS OFFERED AND TRADED INTERNATIONALLY AND MAY BE DENOMINATED IN ONE OF MANY MAJOR CURRENCIES EXCEPT THAT OF THE NATION OF THE ISSUER THE ABBEY NATIONAL OFFERING IS BELIEVED TO BE THE LARGEST EUROBOND OFFERING EVER BY A UK BANK THERE WAS A GREAT DEAL OF PRESSURE AGAINST THE 10YEAR IN THE MORNING SAID DANIEL CALLAHAN MANAGING DIRECTOR IN CHARGE OF GOVERNMENT SECURITIES AT PAINEWEBBER INC CORPORATE BOND SALES REMAINED STRONG IN THE FACE OF RISING INTEREST RATES AS A MIX OF UTILITIES INDUSTRIALS AND FINANCE CONCERNS RAISED 13 BILLION WITH THE MARKET FOCUSING ON NEW ISSUES SEASONED BONDS ENDED FLAT TO 1/4 POINT LOWER IN LIGHT VOLUME JUNK BONDS WERE FIRM BUT FEW BONDS CHANGED HANDS WHILE THE SESSION'S BORROWERS LOCKED IN HISTORICALLY ATTRACTIVE BORROWING RATES SEVERAL FACTORS MADE THE DEALS DIFFICULT TO SELL INVESTMENT BANKERS SAID MOST OF THE NEW DEALS WERE PRICED EARLY IN THE SESSION WHEN INTERMEDIATE AND LONGTERM INTEREST RATES WERE EDGING UP BANKERS ALSO SAID THE DAY'S CALENDAR INCLUDED TOO MANY COMPETITIVE OFFERINGS JERSEY CENTRAL POWER & LIGHT CO GANNETT CO AND NYNEX CORP'S NEW ENGLAND TELEPHONE & TELEGRAPH CO UNIT OFFERED COMPETITIVE DEALS TOTALING 625 MILLION THE COMPETITION AMONG INVESTMENT BANKS FOR THE RIGHT TO UNDERWRITE THE DEBT OF MANY UTILITIES AND SOME INDUSTRIAL BORROWERS TENDS TO DRIVE UP THE COST OF ISSUING THIS DEBT THIS IS OFTEN PASSED ON TO THE INDIVIDUAL INVESTOR IN THE FORM OF A LOWER YIELD SO TOO MANY COMPETITIVE OFFERINGS IN ONE DAY CAN TEMPORARILY DAMPEN PRIMARY MARKET ACTIVITY UNTIL EITHER DEALERS OFFER THE BONDS MORE CHEAPLY OR THE TREASURY MARKET RALLIES MAKING THE BONDS RELATIVELY MORE ATTRACTIVE SYNDICATE OFFICIALS SAID THAT LESS THAN HALF OF THE DAY'S ISSUANCE HAD BEEN PLACED WITH INVESTORS SECURITIES DEMAND FOR COLLATERAL FOR A SPATE OF NEW REAL ESTATE MORTGAGE INVESTMENT CONDUIT AND STRIPPED ISSUES LIFTED PRICES OF MORTGAGE SECURITIES IN SECONDARY TRADING 7 MORTGAGE SECURITIES FOR MAY DELIVERY GAINED 1/8 POINT OR MORE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES ROSE 1/8 TO 101 7/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES GAINED 6/32 TO 101 15/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES ADVANCED 6/32 TO 101 9/32 SIX NEW REMICS TOTALING 2 BILLION AND A HUGE 266 BILLION STRIPS ISSUE WERE ANNOUNCED ALL BUT 724 MILLION OF THE TOTAL ISSUANCE WAS FROM FANNIE MAE A MIX OF 15YEAR 65 SECURITIES 6 SEVENYEAR BALLOONS AND 30YEAR 7 ISSUES AND 75 ISSUES WERE USED AS COLLATERAL FOR THIS SUPPLY WAVE EXPLAINING THE BURST OF ISSUANCE DON SEGALAS HEAD OF MORTGAGE TRADING DESK AT TUCKER ANTHONY INC SAID IT'S THE BEGINNING OF THE SECOND QUARTER MORTGAGES HAD GOTTEN PRETTY CHEAP RELATIVE TO TREASURYS AND THERE HAS BEEN DEMAND FOR SOME REMIC CLASSES THAT HAD RECENTLY BEEN RESISTED BY BUYERS GENE COLTER AND CANDACE CUMBERBATCH CONTRIBUTED TO THIS ARTICLE 9304210066 930421 MARKETING & MEDIA NEW AUSTRALIAN RULE LETS TELEGRAPH BOOST STAKE IN JOHN FAIRFAX A WALL STREET JOURNAL NEWS ROUNDUP THE AUSTRALIAN GOVERNMENT EASED RESTRICTIONS ON FOREIGN OWNERSHIP OF THE NATION'S NEWSPAPERS ALLOWING TELEGRAPH PLC OF LONDON TO INCREASE ITS STAKE IN PUBLISHER JOHN FAIRFAX HOLDINGS LTD TO 25 FROM 15 WHILE AUSTRALIA'S RULES ON FOREIGN OWNERSHIP OF NEWSPAPERS HAVE BEEN QUIRKY THE BASIC PLAN HAD BEEN TO KEEP INDIVIDUAL FOREIGN OWNERSHIP BELOW 15 AND TOTAL FOREIGN OWNERSHIP BELOW 25 THE 25 CEILING NOW APPLIES TO INDIVIDUAL INVESTORS IN ADDITION A SEPARATE FOREIGN INVESTOR COULD OWN AS MUCH AS 5 OF A NEWSPAPER RAISING THE TOTAL FOREIGNOWNERSHIP CEILING TO 30 TELEGRAPH A BRITISH COMPANY CONTROLLED BY CANADIAN PUBLISHER CONRAD BLACK BOUGHT A 15 STAKE IN FAIRFAX IN 1991 GIVING MR BLACK EFFECTIVE CONTROL OF THE AUSTRALIAN PUBLISHER FAIRFAX WAS IN RECEIVERSHIP AT THE TIME SAN FRANCISCOBASED INVESTMENT BANK HELLMAN & FRIEDMAN HOLDS A 5 STAKE IN FAIRFAX UNDER THE LATEST GOVERNMENT RULING HELLMAN & FRIEDMAN CAN KEEP ITS 5 STAKE THE GOVERNMENT'S DECISION CAME IN RESPONSE TO REPEATED REQUESTS BY THE TELEGRAPH TO RAISE ITS STAKE IN JOHN FAIRFAX AUSTRALIA'S SECONDBIGGEST NEWSPAPER GROUP BEHIND RUPERT MURDOCH'S NEWS CORP THE FAIRFAX STABLE INCLUDES THE SYDNEY MORNING HERALD THE MELBOURNE AGE AND THE AUSTRALIAN FINANCIAL REVIEW A PERSON CLOSE TO THE SITUATION SAID THE TELEGRAPH'S PUSH TO RAISE ITS STAKE REFLECTS AN EFFORT TO STAVE OFF ANY WOULDBE PREDATORS INCLUDING AUSTRALIAN MAGAZINE PUBLISHER KERRY PACKER EARLIER THIS MONTH MR PACKER DISCLOSED HE HAD BUILT A 105 STAKE IN FAIRFAX PARTLY THROUGH HIS NINE NETWORK AUSTRALIA LTD WHICH OWNS TV STATIONS UNDER CURRENT RULES MR PACKER CAN'T RAISE HIS STAKE ABOVE 15 UNLESS HE SELLS HIS TV INTERESTS A PACKER EXECUTIVE DIDN'T RETURN A TELEPHONE CALL SEEKING COMMENT 9304210065 930421 BUSINESS BRIEF CONSOLIDATED FREIGHTWAYS INC COMPANY REPORTS A PROFIT OF 83 MILLION FOR 1ST PERIOD CONSOLIDATED FREIGHTWAYS INC CRIPPLED FROM THE PURCHASE OF A MONEYLOSING AIR FREIGHT COMPANY FOUR YEARS AGO SAID DRASTIC SPENDING CUTS CONTRIBUTED TO A FIRSTQUARTER PROFIT THE PALO ALTO CALIF FREIGHTTRANSPORT CONCERN REPORTED NET INCOME OF 83 MILLION OR 10 CENTS A SHARE COMPARED WITH A LOSS OF 708 MILLION OR 209 A SHARE INCLUDING 70 MILLION FOR AN ACCOUNTING CHANGE IN THE YEAREARLIER QUARTER THIS WAS WITHIN ANALYSTS' RANGE OF ESTIMATES OF A LOSS OF FIVE CENTS TO A PROFIT OF 20 CENTS SUBSTANTIAL EFFORT HAS BEEN GIVEN TO ACHIEVING THIS TURNAROUND DONALD E MOFFITT PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IN A STATEMENT CONSOLIDATED OFFICIALS SAID QUARTERLY RESULTS BENEFITED FROM COST CONTROLS AT THE EMERY WORLDWIDE AIRFREIGHT UNIT AS WELL AS STABILIZED REVENUE REVENUE IN THE QUARTER ROSE SLIGHTLY TO 993 MILLION FROM 9906 MILLION A YEAR AGO AT EMERY WHICH HAS LOST MORE THAN 300 MILLION SINCE BEING ACQUIRED CONSOLIDATED SAID A 1991 RESTRUCTURING HAS CUT COSTS BY 200 MILLION A YEAR 9304210064 930421 BUSINESS BRIEF MELVILLE CORP DEFICIT IN THE FIRST QUARTER NARROWED TO 217 MILLION MELVILLE CORP REPORTED A NARROWER LOSS FOR THE FIRST QUARTER AS SALES AT STORES OPEN FOR MORE THAN ONE YEAR INCREASED LESS THAN 1 FOR THE QUARTER THE RYE NY SPECIALTY RETAILER REPORTED A NET LOSS OF 217 MILLION OR 24 CENTS A SHARE COMPARED WITH A NET LOSS OF 362 MILLION OR 38 CENTS A SHARE A YEAR EARLIER TOTAL SALES EASED 13 TO 203 BILLION FROM 206 BILLION THE 1992 FIRSTQUARTER LOSS INCLUDED A NET CHARGE OF 226 MILLION OR 21 CENTS A SHARE FOR CHANGES IN ACCOUNTING FOR INCOME TAX REPORTING AND POSTRETIREMENT BENEFITS THE COMPANY SAID CONTINUING RECESSIONARY CONDITIONS AND POOR WEATHER CONDITIONS HURT FIRSTQUARTER EARNINGS BUT THE COMPANY SAID IT IS ENCOURAGED BY POSITIVE SALES GROWTH AT ITS CVS STORES 9304210063 930421 COMMODITIES WEATHER FEARS DRIVE GRAIN FUTURES PRICES UP DELAYS IN OAT CORN PLANTINGS THREATEN YIELDS BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO WEATHER FEARS INTENSIFIED AT THE CHICAGO BOARD OF TRADE DRIVING GRAIN FUTURES PRICES HIGHER THE UNUSUALLY WET COLD SPRING ACROSS MOST OF THE PLAINS AND MIDWEST STATES IS HAMPERING PLANTING OF GRAINS SO FAR MAINLY OATS AND CORN WHILE ANALYSTS SAY IT IS TOO EARLY TO BECOME ALARMED ABOUT THE 1993 CROP PLANTINGS ARE LAGGING BEHIND FIVEYEAR AVERAGES FOR THIS TIME OF YEAR OAT PLANTINGS ARE WAY BEHIND SCHEDULE AND MUCH OF THE US CORN CROP WON'T BE PLANTED UNTIL MIDMAY SAID DANIEL W BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO THE LATER YOU PLANT CORN OR OATS THE MORE YIELD YOU LOSE THAT'S WHY THE MARKET IS CONCERNED ABOUT IT IN IOWA A BIG OATPRODUCING STATE THE OAT CROP IS ABOUT 1 PLANTED COMPARED WITH 83 LAST YEAR AT THIS TIME AND A FIVEYEAR AVERAGE OF 78 ON APRIL 20 THE OPTIMAL PLANTING DATES FOR OATS ARE FROM APRIL 1 TO APRIL 15 AT THE BOARD OF TRADE YESTERDAY OATS FOR JULY DELIVERY ROSE SIX CENTS TO 161 A BUSHEL THE HIGHEST PRICE IN MORE THAN A YEAR MOREOVER EXTENDED WEATHER FORECASTS FOR THE MIDWEST ARE GRIM A NATIONAL WEATHER SERVICE SIXTO10DAY EXTENDED FORECAST RELEASED MONDAY PREDICTED ABOVE AVERAGE MOISTURE AND BELOW AVERAGE TEMPERATURES TRADERS WILL CLOSELY WATCH A NEW SIXTO10DAY FORECAST TO BE RELEASED TODAY FORECASTS OF CONTINUING RAIN WOULD BE LIKELY TO EXERT UPWARD PRESSURE ON FUTURES PRICES PARTICULARLY CORN BY MAY 1 EACH YEAR AN AVERAGE OF 22 OF THE US CORN CROP HAS BEEN PLANTED LAST YEAR AN UNUSUALLY DRY YEAR 72 OF THE CROP WAS SEEDED BY MAY 10 ANALYSTS SAY PROSPECTS ARE POOR THAT CORN PLANTINGS WILL PROGRESS AS QUICKLY THIS YEAR SO FAR IN FACT ONLY 2 OF THE US CROP IS IN THE GROUND OPTIMAL DATES FOR PLANTING CORN ARE MAY 1 THROUGH MAY 10 AT THE CBOT CORN FOR MAY DELIVERY WAS UP 1 3/4 CENTS TO 23125 A BUSHEL ALTHOUGH SOYBEANS AND SPRING WHEAT ARE PLANTED LATER THAN CORN PRICES OF THOSE COMMODITIES ALSO ROSE YESTERDAY THE PRICE OF THE JULY SOYBEAN FUTURES CONTRACT ROSE TWO CENTS TO 59325 A BUSHEL WHILE WHEAT FOR JULY DELIVERY CLIMBED ONE CENT TO 31150 IN OTHER COMMODITY MARKETS YESTERDAY ENERGY MAY CRUDE OIL FUTURES LOST 15 CENTS IN THE LAST DAY OF TRADING YESTERDAY ON THE NEW YORK MERCANTILE EXCHANGE CLOSING AT 1984 A BARREL JUNE CRUDE MEANWHILE GAINED THREE CENTS A BARREL TO FINISH AT 2032 OUTER MONTHS WERE HIGHER SOME MARKET WATCHERS SURMISED THAT THE MAY CONTRACT'S PRICE WEAKNESS LATE IN TRADING SUGGESTS A QUITE AMPLE SUPPLY OF CRUDE DURING THE NEXT MONTH THE MAY PRICE DECLINE ALSO REFLECTED THE MOVE BY SOME PARTICIPANTS TO ADJUST THEIR POSITIONS AHEAD OF YESTERDAY'S US INVENTORY REPORT FROM THE AMERICAN PETROLEUM INSTITUTE PRODUCTS FOLLOWED CRUDE LOWER WITH MAY HEATING OIL LOSING 036 CENTS A GALLON TO FINISH AT 5513 CENTS AND MAY GASOLINE SETTLING AT 6032 CENTS A GALLON 08 CENTS LOWER COPPER COPPER FUTURES PRICES MOVED SHARPLY LOWER ON CONTINUED CONCERN ABOUT WEAKENING DEMAND FROM CHINA JAPAN AND EUROPE ON NEW YORK'S COMMODITY EXCHANGE COPPER FOR MAY DELIVERY SKIDDED 270 CENTS TO 8165 CENTS A POUND IN HEAVY TRADING THE COPPER MARKET COULD BE IN FOR FURTHER DOWNWARD PRESSURE ANALYSTS SAY UNLESS CHINESE BUYING INCREASES 9304210062 930421 MARKETING & MEDIA ST MARTIN'S IS DEVELOPING A BOOK ON WACO STANDOFF NEW YORK THE FIRST BOOK ON THE EVENTS OF RECENT DAYS IN WACO TEXAS IS ALREADY BEING WRITTEN ST MARTIN'S PRESS WHICH REGULARLY PUBLISHES TRUE CRIME TITLES SAID IT SIGNED WRITER CLIFFORD LINEDECKER SEVERAL WEEKS AGO TO WRITE THE BOOK WHICH WILL ARRIVE IN BOOKSTORES IN EARLY JUNE MR LINEDECKER'S MASSACRE AT WACO TEXAS THE SHOCKING STORY OF CULT LEADER DAVID KORESH AND THE BRANCH DAVIDIANS WILL BE PUBLISHED IN PAPERBACK AND WILL SELL FOR 499 ST MARTIN'S IS A UNIT OF MACMILLAN LTD FAST AS ST MARTIN'S IS IT WON'T BEAT THE NBC NETWORK WHICH IS ALREADY MAKING A MADEFORTELEVISION MOVIE ON THE CULT WHICH IS DUE TO AIR IN MAY NBC IS A UNIT OF GENERAL ELECTRIC CO 9304210061 930421 BUSINESS BRIEF LOUISIANAPACIFIC CORP FIRSTQUARTER NET INCOME SALES ROSE SHARPLY FROM '92 BOOSTED BY HIGH BUILDINGPRODUCT PRICES LOUISIANAPACIFIC CORP POSTED GAINS IN FIRSTQUARTER SALES AND EARNINGS THE FOREST PRODUCTS CONCERN BASED IN PORTLAND ORE REPORTED NET INCOME SOARED TO 773 MILLION OR 141 A SHARE FROM YEAREARLIER EARNINGS OF 36 MILLION OR 67 CENTS A SHARE THE PERSHARE FIGURES REFLECT A 3FOR2 STOCK SPLIT PAID BY THE COMPANY IN JUNE 1992 SALES ROSE 37 TO 6492 MILLION FROM 4755 MILLION THIS YEAR'S NET INCOME WAS CUT BY AN ACCOUNTING ADJUSTMENT OF 104 MILLION LOUISIANAPACIFIC SAID PRICES OF MANY BUILDING MATERIALS REACHED RECORD HIGHS IN THE QUARTER AS DEMAND IMPROVED AND SUPPLIES REMAINED TIGHT THE COMPANY SAID IT COULDN'T MEET DEMAND FOR MANY PRODUCTS AND HAD TO ALLOCATE SUPPLIES TO CUSTOMERS DURING THE PERIOD THIS STRONG MARKET OFFSET THE CONTINUING WEAK MARKET FOR PULP 9304210060 930421 CBOT DROPS BID FOR COMEX IN NEW YORK BY JEFFREY TAYLOR AND WARREN GETLER STAFF REPORTERS OF THE WALL STREET JOURNAL THE CHICAGO BOARD OF TRADE ACKNOWLEDGING THAT ITS BID TO ACQUIRE NEW YORK'S COMMODITY EXCHANGE WAS DOOMED TO BE REJECTED BY COMEX TRADERS WITHDREW THE OFFER THE CBOT THE WORLD'S LARGEST FUTURES MARKET HAD OFFERED TO SWALLOW THE NEW YORK EXCHANGE IN AN AGREEMENT NEGOTIATED IN JANUARY BY CBOT CHAIRMAN PATRICK ARBOR AND COMEX CHAIRMAN DONNA REDEL THE AGREEMENT WAS PRESENTED TO COMEX MEMBERS AS A CHANCE TO REVIVE THE COMEX WHICH HAS SUFFERED FROM DECLINING TRADING VOLUME IN ITS KEY GOLD AND SILVER FUTURES CONTRACTS BUT COMEX TRADERS WERE ANGERED BY THE DEAL OBJECTING TO THE FACT THAT CBOT WOULDN'T PAY ANY MONEY UNDER THE TAKEOVER PROPOSAL AND WOULDN'T ALLOW COMEX TRADERS ACCESS TO THE CBOT'S LUCRATIVE INTERESTRATE AND AGRICULTURAL FUTURES CONTRACTS MR ARBOR SAID YESTERDAY THAT CBOT DIRECTORS WOULD NOT AGREE TO LET COMEX TRADERS BUY AND SELL ITS CORE CONTRACTS BASED ON US TREASURY BONDS CORN AND SOYBEANS AFTER WEEKS OF NEGOTIATIONS MR ARBOR SAID IN A STATEMENT WE HAVE CONCLUDED THAT WE COULD NOT MODIFY OUR ORIGINAL BUSINESS PROPOSAL TO SATISFACTORILY ADDRESS COMEX'S DEMAND FOR EXTENDED ACCESS TO OUR PRODUCTS THE RESOLVE OF COMEX TRADERS WAS HARDENED IN RECENT WEEKS BY A STEADY IMPROVEMENT IN TRADING VOLUME IN ITS CORE FUTURES CONTRACTS FOR GOLD SILVER AND COPPER WHILE OVERALL DAILY VOLUME AVERAGED 49800 CONTRACTS LAST YEAR AVERAGE DAILY VOLUME HAS SURGED TO NEARLY 60000 CONTRACTS SINCE JANUARY VOLATILITY ON WHICH DEALERS RELY TO EARN PROFITS IN THE COMMODITIESTRADING INDUSTRY HAS RETURNED TO THE KEY GOLD AND COPPER MARKETS THE DEMISE OF THE CBOT'S BID FOR THE COMEX IS CERTAIN TO INHIBIT EFFORTS TO CONSOLIDATE THE FUTURES INDUSTRY THROUGH MERGERS AND ACQUISITIONS INFLUENTIAL INDUSTRY FIGURES SUCH AS RICHARD L SANDORTHE CBOT DIRECTOR WHO SUGGESTED THE CBOTCOMEX MERGER AND INTRODUCED MR ARBOR TO MS REDEL ASSERT THAT CONSOLIDATION IS VITAL IF EXCHANGES ARE TO COMPETE WITH THE BOOMING OVERTHECOUNTER MARKET IN FUTURES AND OPTIONS CONTRACTS MY BELIEF IS THAT THE INDUSTRY IS GOING TO CONSOLIDATE WITH THE SAME KIND OF MERGERS AND ACQUISITIONS THAT YOU SEE IN RETAILING AND AIRLINES MR SANDOR SAYS IF US FUTURES EXCHANGES DON'T JOIN FORCES TO CUT COSTS HE AND OTHERS SUGGEST THEY FACE CONTINUING LOSS OF THEIR MARKET SHARE TO BIG WALL STREET INVESTMENT FIRMS AND OVERSEAS MARKETS ALAN HANSON SPOKESMAN FOR THE COMEX SAID THE WITHDRAWAL OF THE CBOT'S OFFER LEAVES THE NEW YORK MART WITH NO FORMAL TAKEOVER BID ON THE TABLE ALTHOUGH EXECUTIVES OF THE EXCHANGE SAY THEY CONTINUE TO WELCOME SERIOUS OFFERS COMEX EXECUTIVES HAVE ENGAGED IN PRELIMINARY TALKS WITH THE LARGER NEW YORK MERCANTILE EXCHANGE AND EXCHANGED LETTERS WITH OFFICIALS FROM THE NEW YORK STOCK EXCHANGE ABOUT AREAS OF POSSIBLE COOPERATION TO DATE THE BOARD OF THE NEW YORK MERC HAS NOT DECIDED TO MAKE A FORMAL TAKEOVER PROPOSAL MERC PRESIDENT R PATRICK THOMPSON SAID YESTERDAY THAT HIS EXCHANGE WILL DECIDE WITHIN THREE MONTHS WHETHER TO PURSUE A MERGER WITH COMEX SOME COMEX MEMBERS HAVE SAID THAT A TAKEOVER PROPOSAL BY THE BIGGER NEW YORK MERC WOULD MAKE SENSE BECAUSE THE MERC HAS SUCCESSFULLY DEVELOPED TWO PRECIOUSMETALS CONTRACTS IN PLATINUM AND PALLADIUM FUTURES THERE HAVE BEEN NUMEROUS ATTEMPTS IN PAST YEARS TO MERGE THE FIVE COMMODITY EXCHANGES IN NEW YORK BUT EACH EFFORT HAS FOUNDERED USUALLY BECAUSE OF PERSONALITY CLASHES AMONG STRONGWILLED EXCHANGE LEADERS THE CBOT'S OFFER FOR THE COMEX WAS THE FIRST EFFORT TO MERGE CHICAGO AND NEW YORK EXCHANGES NEW YORKBASED TRADERS SAY IT'S LIKELY THAT THE FAILURE OF THE CBOT AND COMEX TO REACH AN AGREEMENT WILL REFOCUS FUTURE EFFORTS ON MERGERS AMONG NEW YORK EXCHANGES MR ARBOR SAID THE CBOT IS STILL INTERESTED IN PURSUING SOME SORT OF MUTUAL TRADECLEARING AGREEMENT WITH COMEX BUT COMEX FLOOR TRADERS WERE SO ALIENATED BY THE CBOT'S TAKEOVER PROPOSAL THAT THE PROSPECT SEEMS UNLIKELY MOREOVER THE EPISODE HAS PROVED POLITICALLY DAMAGING TO MS REDEL SHE HAD RESIGNED AS LEAD NEGOTIATOR IN THE CBOT TALKS UNDER PRESSURE FROM DISGRUNTLED BOARD AND FLOOR MEMBERS SHE NOW FACES A PETITION FROM THE COMEX FLOOR THAT SEEKS TO MAKE IT EASIER TO REMOVE HER FROM OFFICE THE PETITION WHICH WILL BE SUBMITTED AT THE NEXT SCHEDULED COMEX BOARD MEETING MAY 13 SEEKS TO CHANGE EXCHANGE BYLAWS SO THAT 60 OF VOTING MEMBERS INSTEAD OF THE CURRENT 75 COULD REMOVE A BOARD MEMBER WHO HAD BEEN ELECTED AT LARGE SOME COMEX DIRECTORS AND FLOOR TRADERS HAVE SHARPLY CRITICIZED MS REDEL'S PERFORMANCE DURING THE ROUND OF TALKS WITH THE CBOT THEY ASSERTED THAT SHE WITHHELD IMPORTANT INFORMATION FROM THEM AND FAILED TO PUSH FOR CONCESSIONS FROM THE CHICAGO EXCHANGE MR ARBOR SAID IN AN INTERVIEW LAST MONTH THAT HE HADN'T INTENDED FOR HIS EXCHANGE'S ATTEMPT TO ACQUIRE COMEX TO HURT MS REDEL POLITICALLY I UNDERSTAND SHE DOES HAVE PROBLEMS MR ARBOR SAID I DON'T KNOW HOW BAD THEY ARE MR HANSON THE COMEX SPOKESMAN SAID MS REDEL AND OTHER BOARD MEMBERS WERE NOT AVAILABLE TO COMMENT HE SAID THAT MS REDEL WILL MAINTAIN AN OVERSIGHT ROLE IN ANY FURTHER TALKS WITH OTHER EXCHANGES SHOULD THEY ARISE BUT THAT SHE WILL HAVE NO DIRECT DAYTODAY ROLE WITH THE FIVEMEMBER MERGER AND ACQUISITION COMMITTEE AT THE COMEX 9304210059 930421 BUSINESS BRIEF INGERSOLLRAND CO FIRSTQUARTER PROFIT ROSE 19 DISCOUNTING '92 CHARGES INGERSOLLRAND CO SAID FIRSTQUARTER EARNINGS TOTALED 246 MILLION OR 24 CENTS A SHARE COMPARED WITH A BIG LOSS A YEAR EARLIER THAT INCLUDED CHARGES FOR ADOPTION OF NEW ACCOUNTING RULES EXCLUDING THOSE CHARGES EARNINGS FOR THE QUARTER WERE UP 19 THE WOODCLIFF LAKE NJ MANUFACTURING COMPANY ATTRIBUTED THE RISE TO COSTCUTTING PROGRAMS AND IMPROVED US AUTO AND HOUSING MARKETS IN THE 1992 FIRST QUARTER INGERSOLLRAND HAD A NET LOSS OF 3294 MILLION OR 316 A SHARE THAT QUARTER WAS DOMINATED BY A ONETIME 350 MILLION AFTERTAX CHARGE FOR THE ADOPTION OF TWO ACCOUNTING CHARGES EXCLUDING THOSE CHARGES NET WAS 206 MILLION OR 20 CENTS A SHARE SALES FOR THE QUARTER INCREASED 106 TO 9521 MILLION ON THE STRENGTH OF SALES FROM THE NEWLY FORMED INGERSOLLDRESSER PUMP CO WITHOUT IDP INGERSOLL SAID ITS SALES WOULD HAVE BEEN DOWN 3 9304210058 930421 EXECUTIVE PAY A SPECIAL REPORT WHO MADE THE BIGGEST BUCKS MANY CHIEF EXECUTIVES EXERCISED A SLEW OF STOCK OPTIONS LAST YEAR TO AVOID THE THREAT OF HIGHER FEDERAL TAXES SENDING THEIR PAY SOARING ACCORDING TO THE WILLIAM M MERCER INC COMPENSATION SURVEY 1992'S HIGHESTPAID CEOS TAKING INTO ACCOUNT SALARY BONUS LONGTERM INCENTIVE PAYOUTS AND THE VALUE OF THEIR RESTRICTEDSTOCK GRANTS INCLUDED THOMAS F FRIST JR HCAHOSPITAL CORP OF AMERICA WITH TOTAL COMPENSATION OF 127 MILLION MUCH OF THAT WAS DUE TO A 1259 MILLION GAIN FROM EXERCISING STOCK OPTIONS SANFORD I WEILL PRIMERICA CORP 674 MILLION OF THE TOTAL 639 MILLION REFLECTED THE EXERCISE OF STOCK OPTIONS CHARLES LAZARUS TOYS R US INC 642 MILLION INCLUDING 572 MILLION FROM STOCKOPTION GAINS LEON C HIRSCH UNITED STATES SURGICAL CORP 607 MILLION INCLUDING 585 MILLION FROM EXERCISING STOCK OPTIONS ANTHONY JF O'REILLY HEINZ CO 366 MILLION INCLUDING 335 MILLION IN STOCKOPTION GAINS AND 21 MILLION IN LONGTERM INCENTIVE PAYOUTS WILLIAM A ANDERS GENERAL DYNAMICS CORP 235 MILLION INCLUDING 212 MILLION FROM STOCKOPTION GAINS REUBEN MARK COLGATEPALMOLIVE CO 228 MILLION OF THE TOTAL 189 MILLION CAME FROM EXERCISING STOCK OPTIONS AND 19 MILLION REPRESENTED THE VALUE OF RESTRICTED STOCK AT THE TIME OF THE GRANT WJ SANDERS ADVANCED MICRO DEVICES INC 221 MILLION INCLUDING 194 MILLION IN STOCKOPTION GAINS JOHN F WELCH JR GENERAL ELECTRIC CO 18 MILLION INCLUDING 67 MILLION FROM EXERCISING STOCK OPTIONS AND RESTRICTED STOCK VALUED AT 78 MILLION WHEN HE GOT THE GRANT MESSRS WEILL HIRSCH AND O'REILLY ALSO LANDED ON THE HIGHESTPAY SCOREBOARD FOR 1991 9304210057 930421 BUSINESS BRIEF SAFEWAY INC FIRSTPERIOD LOSS EXPECTED DUE TO EMPLOYEE BUYOUT SAFEWAY INC SAID IT EXPECTS TO REPORT A LOSS FOR ITS FIRST QUARTER BECAUSE OF THE COST OF AN EMPLOYEEBUYOUT PROGRAM THE OAKLAND CALIF GROCERY STORE CHAIN WOULDN'T BE MORE SPECIFIC ABOUT THE SIZE OF THE EXPECTED LOSS SAFEWAY SAID IT WILL TAKE A ONETIME CHARGE AGAINST EARNINGS TO COVER COSTS ASSOCIATED WITH AN EMPLOYEE BUYOUT CURRENTLY UNDER WAY IN ITS ALBERTA CANADA DIVISION THAT PROGRAM ENDS APRIL 30 THE COMPANY SAID IT WILL ANNOUNCE FIRSTQUARTER RESULTS DURING THE FIRST WEEK OF MAY SAFEWAY EXPECTS THOSE RESULTS EXCLUDING THE BUYOUT CHARGE TO BE SLIGHTLY HIGHER THAN YEAREARLIER PROFIT FROM OPERATIONS OF 229 MILLION OR 19 CENTS A SHARE IN THE YEARAGO PERIOD A CHARGE FOR EARLY DEBT RETIREMENT GAVE THE COMPANY A NET LOSS OF 49 MILLION OR FOUR CENTS A SHARE SALES FOR THE QUARTER WERE ROUGHLY FLAT WITH YEARAGO SALES OF 34 BILLION SAFEWAY SAID SAMESTORE SALES DECREASED 13 9304210056 930421 BUSINESS BRIEF FIRST WESTERN BANCORP INC SHAREHOLDERS VOTE TO DOUBLE CONCERN'S AUTHORIZED SHARES FIRST WESTERN BANCORP INC SAID SHAREHOLDERS VOTED TO DOUBLE THE NUMBER OF AUTHORIZED COMMON SHARES TO 20 MILLION GIVING THE BANK HOLDING COMPANY GREATER FLEXIBILITY FIRST WESTERN ALSO SAID SHAREHOLDERS AT ITS ANNUAL MEETING VOTED TO DOUBLE THE NUMBER OF AUTHORIZED PREFERRED SHARES TO FOUR MILLION WHILE THE MOVES WOULD MAKE IT EASIER FOR FIRST WESTERN TO HAVE A STOCK SPLIT STOCK DIVIDEND OR ACQUISITION USING STOCK AN OFFICIAL SAID THE COMPANY DOESN'T PLAN TO PURSUE ANY OF THOSE ACTIONS FIRST WESTERN HAS ABOUT FIVE MILLION COMMON SHARES OUTSTANDING AND NO PREFERRED SHARES OUTSTANDING SHAREHOLDERS ALSO APPROVED CHANGES IN THE NEW CASTLE PA COMPANY'S ARTICLES OF INCORPORATION INCLUDING ELIMINATING A SUPERMAJORITY VOTE 666 OF THE OUTSTANDING STOCK FOR MATTERS THAT HAVE RECEIVED BOARD APPROVAL 9304210055 930421 EXECUTIVE PAY A SPECIAL REPORT WHAT'S AN EXPATRIATE THE NEW GLOBAL MANAGER REQUIRES A NEW FORMULA FOR COMPENSATION BUT DEVISING ONE ISN'T EASY BY AMANDA BENNETT A MANAGER WITHOUT A COUNTRY IN TERMS OF PAY THAT'S BECOMING A BIGGER POSSIBILITY FOR TODAY'S MOBILE BREED OF EXECUTIVES AS MORE AMERICAN COMPANIES EMERGE AS GLOBAL MARKETERS AND MANUFACTURERS THEY ARE DISCOVERING A CRYING NEED FOR MORE SOPHISTICATED GLOBAL COMPENSATION SYSTEMS EVERY MULTINATIONAL COMPANY SURVEYED RECENTLY BY ORGANIZATIONAL RESOURCES COUNSELORS INC CITED DIFFERENCES IN LEVELS OF PAY BENEFITS AND PERQUISITES AS AMONG THEIR GREATEST PROBLEMS IN DEVELOPING AN INTERNATIONAL WORK FORCE ONLY 60 OF THE 45 COMPANIES SURVEYED BY THE NEW YORK COMPENSATION CONSULTANT CITED CULTURAL DIFFERENCES THE CONCERN IS UNDERSTANDABLE UNTIL RECENTLY COMPENSATING OVERSEAS EMPLOYEES WAS PRETTY SIMPLE THERE WERE BASICALLY TWO KINDS OF WORKERS ABROAD LOWLEVEL LOCAL HIRES WHO GOT PAID IN LOCAL CURRENCY AND US MANAGERS WHOSE PAY WAS PEGGED TO US SALARIES THE AMERICAN MANAGERS WOULD TYPICALLY WORK FOR A FEW YEARS ABROAD AND THEN RETURN HOME NO LONGER MANY OVERSEAS OPERATIONS INCREASINGLY RELY ON A GROWING BAND OF SENIOR MANAGERS SOME AMERICAN SOME NOT READY TO RELOCATE TO ANOTHER COUNTRY AT ANY TIME SOME OF THEM WILL NEVER WORK OUT OF THE HOME COUNTRY IN ADDITION THE RISING NUMBER OF ALLIANCES BETWEEN US AND FOREIGN COMPANIES IS FORCING HIGHLEVEL AMERICAN AND NONAMERICAN MANAGERS TO WORK SIDE BY SIDE AS NEVER BEFORE YOU HAVE AN INTERNATIONAL CADRE WHO GO FROM COUNTRY TO COUNTRY SAYS NEIL COLEMAN VICE PRESIDENT FOR GLOBAL PAY PRACTICES AT ORGANIZATION RESOURCES COUNSELORS THERE ARE INTERNATIONAL COMMUTERS AND THERE ARE PEOPLE WHO NEVER RETURN TO THEIR HOME COUNTRY IT COMPLICATES LIFE THE UPSHOT NEW COMPENSATION SYSTEMS THAT REFLECT THE NEW MORE COMPLEX REALITY SOME COMPANIES FOR INSTANCE ARE TYING THEIR PERIPATETIC MANAGERS' PAY TO THEIR OWN HOME COUNTRIES AND SOME TO THE NEW COUNTRIES WHERE THEY RESIDE SOME OPT FOR A MIXTURE OF BOTH STILL OTHERS STRUGGLE TO COME UP WITH A TRULY GLOBAL STANDARD FOR PAY A TASK COMPLICATED BY A HOST OF FACTORS RANGING FROM FLUCTUATING CURRENCIES TO CULTURAL DIFFERENCES IN HOW PAY IS PERCEIVED EUROPEANS AND JAPANESE FOR EXAMPLE OFTEN ARE LEERY OF STOCK AND STOCK OPTIONS BECAUSE SUCH COMPENSATION TOOLS AREN'T WIDELY USED OUTSIDE THE US AT THE ROOT OF THE MOVEMENT TOWARD A GLOBALSTYLE PAY SYSTEM IS COST EXPATRIATE PACKAGES BASED ON AMERICAN SALARIES AND NEEDS INCREASINGLY ARE SEEN AS TOO EXPENSIVE FOR INTERNATIONAL MANAGERS WITH SALARIES AND STANDARDS OF LIVING VARYING DRASTICALLY FROM COUNTRY TO COUNTRY COMPANIES ALSO MUST GRAPPLE WITH THE ISSUE OF FAIRNESS EMPLOYERS WANT TO FIND WAYS OF MAKING TRANSFERS ATTRACTIVE WITHOUT PAYING PEOPLE TOO MUCH MORE OR TOO MUCH LESS THAN THEIR NEW COLLEAGUES OVERSEAS DOES IT MAKE SENSE TO TAKE AN ARGENTINE IN ECUADOR SOMEONE WHO HAS NO CONNECTION WITH THE US NEVER DID AND NEVER WILL AND PUT THE ARGENTINE ON A US PAY PACKAGE ASKS ALAN HAIT DIRECTOR OF BENEFITS FOR AVON PRODUCTS INC IN NEW YORK SO MORE AMERICAN COMPANIES ARE DEVISING PAY PACKAGES LIKE THE ONE PHILLIPS PETROLEUM CO OF BARTLESVILLE OKLA GIVES ROBIN GARNETT WHEN MR GARNETT A BRITISH GEOPHYSICIST FIRST WENT ABROAD IN THE LATE 1970S PHILLIPS PAID HIM IN DOLLARS AND RAISED HIS SALARY TO A LEVEL EQUIVALENT TO THAT OF SOMEONE IN THE US DOING A SIMILAR JOB BUT TODAY AS PHILLIPS'S EXPLORATION DIRECTOR IN NORWAY MR GARNETT'S PAY IS CALCULATED UNDER A NEW CATEGORY DEVELOPED WITHIN THE LAST THREE YEARS UNDER THIS THIRDCOUNTRY NATIONALS PROGRAM MR GARNETT GETS THE SAME KIND OF HOUSING ALLOWANCES HOME LEAVE AND EDUCATIONAL ASSISTANCE FOR HIS CHILDREN AS BEFORE THIS TIME HOWEVER HIS SALARY IS PEGGED TO THE MORE MODEST LEVEL AT WHICH HE WAS PAID BACK HOME IN THE UNITED KINGDOM THE NEW PAY CALCULATION ENABLES US TO HAVE A REASONABLE MIX OF EXPATRIATES BUT NOT PAY AT THE SAME COST SAYS DAVID HOWARD A HUMANRESOURCES MANAGER AT PHILLIPS THE TOTAL PAY PACKAGE IS NOT AS EXPENSIVE MR GARNETT PUTS IT A BIT LESS OBLIQUELY I WAS BETTER OFF UNDER THE OTHER PAY SYSTEM HE SAYS MANY US MULTINATIONALS ARE STRUGGLING WITH A DIFFERENT ISSUE HOW TO HANDLE INTERNATIONAL TRANSFERS THAT LAST INDEFINITELY WITHOUT FIRM PLANS TO RETURN A MANAGER TO HIS OR HER HOME COUNTRY THIS GROWING TREND CHANGES THE PAY QUESTION FROM COMPENSATING A MANAGER FOR A TEMPORARY DISRUPTION TO A LONGERTERM ISSUE OF LIFESTYLE AND EQUITY WITH NEW COLLEAGUES OF THE 520 PEOPLE HEWLETTPACKARD CO MOVED ABROAD LAST YEAR ABOUT 25 WERE ON INDEFINITE ASSIGNMENTS THAT WAS UP FROM 12 TO 15 JUST THREE OR FOUR YEARS AGO SAYS PETE OBERTO COMPENSATION BENEFITS AND INTERNATIONALSERVICES MANAGER FOR THE PALO ALTO CALIF COMPANY LIKE PHILLIPS HEWLETTPACKARD ALSO TIES THE PAY OF SHORTTERM TRANSFEREES TO THEIR OWN HOME COUNTRIES BUT LONGERTERM HEWLETTPACKARD EXPATRIATES ARE QUICKLY SWITCHED TO THE PAYROLL OF THEIR NEW HOME COUNTRY AND PAID ACCORDING TO THAT COUNTRY'S LOCAL STANDARDS FOR EMPLOYEES MOVING FROM HIGHPAY COUNTRIES LIKE GERMANY TO LOWERPAY COUNTRIES LIKE FRANCE HEWLETTPACKARD OFFERS TEMPORARY BRIDGING PAYMENTS TO EASE THE ADJUSTMENT MINNESOTA MINING & MANUFACTURING CO ON THE OTHER HAND HAS JUST ROLLED OUT A COMPLETELY DIFFERENT PROGRAM FOR SUCH LONGERTERM EXPATRIATES IN EUROPE THE COMPANY SAYS THAT IT NEEDED THE NEW PROGRAM BECAUSE IT'S DRASTICALLY ALTERING HOW IT CONDUCTS BUSINESS IN EUROPE THE COMPANY'S EUROPEAN OPERATIONS LONG DIVIDED INTO SUBSIDIARIES ON A COUNTRYBYCOUNTRY BASIS RECENTLY WERE REORGANIZED ON A EUROPEWIDE BASIS THIS MEANS THAT MORE 3M EXECUTIVES WHO MIGHT HAVE SPENT THEIR ENTIRE CAREER IN ONE COUNTRY ARE BEING ASKED TO MOVE MORE OR LESS PERMANENTLY TO ANOTHER THE NEW 3M PLAN UNVEILED LATE LAST YEAR COMPARES NET SALARIES IN BOTH THE OLD AND THE NEW COUNTRY BY SUBTRACTING THE MAJOR COSTS MAINLY TAXES AND HOUSING FROM GROSS PAY THE TRANSFERRED EXECUTIVE GETS WHICHEVER PAY PACKAGE IS HIGHER THUS WHEN THE COMPANY RECENTLY TRANSFERRED A GERMAN EXECUTIVE TO FRANCE THE GERMAN REMAINED ON HIS HOMECOUNTRY PAYROLL BUT A BRITISH EMPLOYEE TRANSFERRED TO GERMANY WHERE SALARIES ARE HIGHER WAS TRANSFERRED TO THE GERMAN PAYROLL THOUGH THE POLICY DOES CONSIDER LOCAL HOUSING COSTS IN DETERMINING NET PAY IT DOESN'T COMPENSATE FOR HIGHER HOUSING COSTS THROUGH SPECIAL PAYMENTS THE WAY AN OLD EXPATRIATE POLICY DID THAT'S BECAUSE COSTLY HOUSING SUBSIDIES COULD LAST FOR THE REST OF AN EXECUTIVE'S CAREER FOLLOWING AN INDEFINITE TRANSFER DAVID BOLLES 3M'S EUROPEAN DIRECTOR OF HUMAN RESOURCES AND ADMINISTRATION CALLS THE NEW PLAN A FAIR WAY TO DEAL WITH INTERNATIONAL COMPENSATION GIVEN THE ALTERNATIVES HE ADDS FROM A COMPENSATION STANDPOINT NOBODY SHOULD HAVE A QUARREL ABOUT HOW THEY ARE BEING TREATED WE ARE TAKING THE BETTER OF THE TWO OPTIONS STILL HE EXPECTS EMPLOYEE COMPLAINTS YOU'LL HEAR A NUMBER OF VIEWS THIS IS FAIR' OR IT AIN'T FAIR' HE SAYS YET PLANS THAT TRY TO TREAT EVERYONE EQUALLY ALSO RUN INTO PROBLEMS ABOUT FIVE YEARS AGO BANK OF AMERICA DEVELOPED A COMPLEX PROGRAM TO TRY TO MAKE SURE THAT ALL EMPLOYEES WORKING IN A FOREIGN COUNTRY COULD ENJOY THE SAME STANDARD OF LIVING REGARDLESS OF WHAT COUNTRY THEY CAME FROM THE BIG SAN FRANCISCO BANK WANTED TO ENSURE THAT WHETHER THEY CAME FROM KARACHI CARACAS OR CONNECTICUT THOSE THREE PEOPLE COULD ENJOY A SIMILAR STANDARD OF LIVING IN THAT ALIEN COUNTRY CALLED GERMANY SAYS JOHN CAMMIGE SENIOR VICE PRESIDENT AND DIRECTOR OF EMPLOYEE RELATIONS SO THE BANKAMERICA CORP SUBSIDIARY DEVELOPED A COMPENSATION SYSTEM THAT BASED PAY PARTLY ON TYPICAL SPENDING PATTERNS IN AN INDIVIDUAL'S NEW COUNTRY UNDER THAT MODEL THE BANK PAID A CERTAIN PROPORTION OF AN EMPLOYEE'S SALARY IN THE NEW COUNTRY AND EXPECTED THAT IT BE SPENT IN THE NEW COUNTRY THIS PART WAS ROUGHLY EQUIVALENT FOR ALL MANAGERS AT SIMILAR LEVELS THE REMAINING SMALLER PART OF THE SALARY WAS TIED TO LIVING COSTS BACK IN THE HOME COUNTRY AND PAID IN THE HOME COUNTRY FOR SAVINGS AND HOMECOUNTRY EXPENSES A NOBLE EFFORT SAYS FLAVIO SA CARVALHO THE BANK'S VICE PRESIDENT OF INTERNATIONAL HUMAN RESOURCES THE EFFORT ULTIMATELY FLOPPED HOWEVER THE MAJOR PROBLEM IT WAS SO COMPLEX THAT OVERSEAS STAFF MEMBERS COULDN'T UNDERSTAND IT I TRIED TO EXPLAIN IT TO PEOPLE BUT EVEN SITTING WITH GRAPHICS IN THEIR HAND PEOPLE STILL HAD A BLANK LOOK ON THEIR FACES MR SA CARVALHO RECALLS THE PLAN ALSO PROVED TO BE ADMINISTRATIVELY BURDENSOME TO BE COST EFFECTIVE THE SYSTEM HAD TO BE OVERENGINEERED TO ACCOUNT FOR ALL OF THE VARIANCES IN CULTURE AND IN DYNAMICS OF EXCHANGE RATES AND SALARY STRUCTURE THE BANK PERSONNEL EXECUTIVE SAYS WHILE SOME EXPATRIATES ARE STILL BEING PAID UNDER THE PLAN MR SA CARVALHO BEGAN TO PHASE IT OUT IN 1989 JUST TWO YEARS AFTER IT WAS IMPLEMENTED PENSIONS MAY BE THE TOUGHEST FORM OF COMPENSATION FOR BUSINESSES TO GLOBALIZE MANY MULTINATIONAL CORPORATIONS KEEP AN EMPLOYEE'S PENSIONS TIED TO A HOME COUNTRY NO MATTER HOW THEY CALCULATE THE REST OF A GLOBAL MANAGER'S PAY PACKAGE YOU CAN INTERNATIONALIZE THE CASH COMPONENTS OF COMPENSATION AND PAY PEOPLE BASED ON EITHER THEIR LEVEL IN THE ORGANIZATION OR BASED ON AN APPROPRIATE LEVEL IN AN INTERNATIONAL MARKET OR A HOMECOUNTRY MARKET SAYS HERBERT FEINZIG VICE PRESIDENT AND DIRECTOR OF CORPORATE COMPENSATION PROGRAMS FOR SMITHKLINE BEECHAM PLC AN ANGLOAMERICAN HEALTHCARE CONCERN BUT YOU HAVE TO MAINTAIN THEM IN THE RETIREMENT PROGRAM THAT IS BASED IN THEIR HOME COUNTRY COMPENSATION EXPERTS SAY THAT A PENSION SHOULD BE TIED TO THE LOCATION WHERE IT WILL ULTIMATELY BE SPENT IN ORDER TO ACCOUNT FOR FLUCTUATING CURRENCIES LOCAL INFLATION AND CHANGES IN LOCAL LIVING STANDARDS YET THAT OFTEN MEANS ADDITIONAL WORK WITH PENSION PLANS DETERMINED BY LOCAL LAW MR FEINZIG ADDS IT'S AN ADDITIONAL ADMINISTRATIVE COMPLEXITY TO JUGGLE CURRENCY DIFFERENCES AND PENSION CREDITS IN STRUGGLING WITH SUCH ISSUES MANY COMPANIES NOW REALIZE THAT IT WILL BE A LONG TIME BEFORE THEY CAN IRON OUT THESE KINDS OF DIFFICULTIES AND CRAFT A TRULY GLOBAL PAY PLAN IT'S ONE THING TO SAY YOU ARE GLOBAL ON PAPER NOTES AVON'S MR HAIT BUT HOW CAN YOU USE PAY TO REINFORCE THESE PERCEPTIONS AND ALTER BEHAVIOR MS BENNETT IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU WHEN MULTINATIONAL COMPANIES WERE ASKED TO NAME THEIR BIGGET PROBLEMS IN DEVELOPING AN INTERNATIONAL WORK FORCE THEY SAID MULTINATIONAL COMPANIES 9304210054 930421 FOREIGN EXCHANGE YEN AGAIN SETS RECORD AGAINST DOLLAR AS EUROPEAN OFFICIAL BACKS ITS RISE BY RICHARD SCHUMACHER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MOMENTUM AND NEW SIGNS THAT JAPAN'S MAIN TRADING PARTNERS WANT THE YEN TO RISE SENT THE DOLLAR TO ANOTHER POSTWORLD WAR II LOW AGAINST THE JAPANESE CURRENCY BUT WITH NO SIGNIFICANT OTHER NEWS THE DOLLAR WAS LOWER AGAINST THE OTHER MAJOR CURRENCIES LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 15963 MARKS DOWN FROM 15978 LATE IN NEW YORK MONDAY THE US CURRENCY ALSO WAS CHANGING HANDS AT 11055 YEN DOWN FROM 11113 YEN STERLING WAS TRADING AT 15475 UP FROM 15425 IN TOKYO EARLY WEDNESDAY THE DOLLAR WAS TRADING AT 11045 YEN AND 16025 MARKS MARKET PARTICIPANTS SAID THAT AFTER THE YEN'S STEADY APPRECIATION TO SUCCESSIVE RECORD HIGHS IN RECENT DAYS MOMENTUM WAS THE PRINCIPAL FACTOR BEHIND ITS GAINS YESTERDAY OVERALL THE SENTIMENT OF THE MARKET IS THAT THE DOLLAR WILL TRADE LOWER SAID ANN B FINALY A TRADER AT INDUSTRIAL BANK OF JAPAN LTD DEALERS SAID COMMENTS FROM A EUROPEAN COMMUNITY NEGOTIATOR ENDORSING THE JAPANESE CURRENCY'S APPRECIATION WERE THE LATEST INDICATION JAPAN PROBABLY WILL HAVE TO CONTINUE ACTING ALONE AND THEREFORE PROBABLY WITHOUT SIGNIFICANT IMPACT TO TRY TO SUBDUE THE YEN'S GAINS MR KENZLER HOWEVER STOPPED SHORT OF EXPLICITLY CALLING FOR FURTHER YEN APPRECIATION AGAINST EUROPEAN CURRENCIES HE IS THE LATEST OFFICIAL REPRESENTING JAPAN'S TRADING PARTNERS TO SEE A STRONG YEN AS A TOOL FOR TRIMMING JAPAN'S MOUNTING TRADE SURPLUSES ON FRIDAY PRESIDENT BILL CLINTON SAID THE APPRECIATION OF THE YEN IS A FACTOR THAT MIGHT CONTRIBUTE TO STRONGER US EXPORTS TO JAPAN IN LIGHT OF WHAT MR CLINTON SAID THE US ISN'T LIKELY TO INTERVENE TO STOP THE YEN'S ADVANCES SAID JOHN BEERLING CHIEF DEALER AT NORWEST BANK CORP IN MINNEAPOLIS NOW WE SEE WE'RE NOT LIKELY TO GET ANYTHING OUT OF EUROPE EITHER HE ADDED TRADERS REPEATEDLY HAVE SAID IN RECENT DAYS THAT CONCERTED INTERVENTION FROM NATIONS OTHER THAN JAPAN PROBABLY WOULD BE NECESSARY TO HALT OR REVERSE THE YEN'S STRENGTHENING FOR NOW THE MARKET REALIZES THAT JAPAN IS THE ONLY COUNTRY WILLING TO DEFEND THE DOLLAR SAID MS FINALY AND FOR THIS REASON THE DOLLAR IS LIKELY TO CONTINUE TO FALL SHE SAID BUT TRADERS DID NOTE THE BANK OF JAPAN HAS HAD SUCCESS IN SLOWING THE PACE OF THE YEN'S SURGE AT LEAST ON AN INTRADAY BASIS UNCONFIRMED REPORTS OF SEVERAL ROUNDS OF AGGRESSIVE INTERVENTION BY THE BANK OF JAPAN IN ASIAN TRADING HELPED STALL THE YEN'S CLIMB SAID PETER WILD SENIOR VICE PRESIDENT AT BANK JULIUS BAER & CO THE CENTRAL BANK'S EFFORTS HOWEVER FAILED TO PREVENT THE DOLLAR FROM SETTING ANOTHER POSTWORLD WAR II LOW OF 11025 YEN BREAKING A RECORD OF 11075 YEN SET MONDAY MS FINALY SAID CONCERNS ABOUT THE LIKELIHOOD OF FURTHER CENTRAL BANK INTERVENTION KEPT THE DOLLAR FROM DROPPING ANEW IN LATER TRADING PEOPLE ARE NERVOUS TO SELL AT THE LOWS SHE SAID TRADERS SAID THE MARK'S MOVEMENTS AGAINST THE YEN WERE LARGELY TECHNICAL LATE IN NEW YORK THE MARK TRADED AT 6925 YEN DOWN FROM 6955 YEN LATE MONDAY IN NEW YORK AS MARKET ATTENTION HAS INCREASINGLY FOCUSED ON THE DOLLARYEN TRADING IN RECENT DAYS THE DOLLAR'S MOVEMENTS AGAINST OTHER CURRENCIES HAVE TAKEN A BACKSEAT MR BEERLING SAID 9304210053 930421 BUSINESS BRIEF FREEPORTMCMORAN RESOURCE CALPINE TO PAY 635 MILLION FOR GEOTHERMAL PROPERTIES FREEPORTMCMORAN RESOURCE PARTNERS SAID IT AGREED TO SELL CERTAIN PROPERTIES FOR 635 MILLION RESULTING IN A FIRSTQUARTER NONCASH CHARGE OF 40 MILLION BASED IN NEW ORLEANS FREEPORTMCMORAN RESOURCE PARTNERS IS A SULFUR MINING AND FERTILIZER MANUFACTURING COMPANY THE GEOTHERMAL PROPERTIES LOCATED IN THE GEYSERS OF NORTHERN CALIFORNIA WILL BE SOLD TO AN AFFILIATE OF CALPINE CORP THE CURRENT MANAGING PARTNER FREEPORTMCMORAN RESOURCE PARTNERS AN AFFILIATE OF FREEPORTMCMORAN INC WILL RECEIVE 23 MILLION IN CASH AND TWO INTEREST BEARING NOTES WITH A COMBINED FACE VALUE OF 405 MILLION THE SALE SUBJECT TO VARIOUS CONDITIONS AND APPROVALS IS EXPECTED TO BE COMPLETED IN EARLY MAY IN LAST YEAR'S FIRST QUARTER FREEPORTMCMORAN EARNED 76 MILLION OR EIGHT CENTS A SHARE ON REVENUE OF 2285 MILLION 9304210052 930421 BUSINESS BRIEF KMART CORP FIRM EXPECTS LOWER PROFIT FOR FISCAL FIRST QUARTER KMART CORP SAID EARNINGS FOR ITS FISCAL FIRST QUARTER ENDING NEXT WEDNESDAY WILL FALL BELOW THE 26 CENTS A SHARE EARNED A YEAR EARLIER THE TROY MICH RETAILER SAID THAT ALTHOUGH APRIL SALES HAVE IMPROVED FROM THE LOWERTHANEXPECTED RESULTS OF THE TWO PREVIOUS MONTHS WHICH WERE CAUSED BY SEVERE WINTER WEATHER THE RECOVERY HASN'T BEEN ENOUGH TO OFFSET THE PROFIT SHORTFALL IN FEBRUARY AND MARCH KMART SAID THE COOLERTHANNORMAL TEMPERATURES THROUGHOUT MUCH OF THE COUNTRY HAVE CONTINUED TO HURT SALES IN THE HIGHGROSSMARGIN APPAREL AND HORTICULTURE DEPARTMENTS THE ADVERSE WEATHER CONDITIONS AFFECTED NOT ONLY THE DISCOUNT STORES BUT THE RESULTS OF THE SPECIALTY STORE GROUP AS WELL THE COMPANY SAID DESPITE THE PROFIT DROP IN THE FIRST QUARTER KMART SAID IT STILL EXPECTS HIGHER EARNINGS FOR ALL OF 1993 9304210051 930421 BUSINESS BRIEF BIOGEN INC DRUG LABORATORY POSTED NET OF 113 MILLION IN 1ST PERIOD BIOGEN INC BOOSTED BY A DOUBLING OF ROYALTY REVENUE FROM DRUGS IT HELPED TO DEVELOP POSTED FIRSTQUARTER NET INCOME OF 113 MILLION OR 32 CENTS A SHARE COMPARED WITH NET INCOME OF 814000 OR TWO CENTS A SHARE IN THE YEARAGO QUARTER THE CAMBRIDGE MASS BIOPHARMACEUTICAL COMPANY REPORTED REVENUE OF 354 MILLION FOR THE QUARTER UP 85 FROM REVENUE OF 191 MILLION IN THE YEARAGO PERIOD LARGELY ON AN INCREASE IN SALES OF ITS MAIN LICENSED PRODUCTS ALPHA INTERFERON AND HEPATITIS B VACCINES WE HAVE AN OUTSTANDING REVENUE STREAM THAT SHOWS CONTINUED POTENTIAL FOR GROWTH ESPECIALLY IN THE INTRON A AND HEPATITIS B VACCINE MARKETS SAID JAMES VINCENT BIOGEN'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER THIS ENABLES US TO UNDERWRITE OUR RESEARCH AND DEVELOPMENT COSTS WITHOUT RETURNING TO THE FINANCIAL MARKETS IN THE FORESEEABLE FUTURE 9304210050 930421 HEALTH ABORTION PILL MAKER AGREES TO US TRIALS BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ROUSSELUCLAF SA MAKER OF THE ABORTION PILL RU486 HAS AGREED TO LICENSE THE CONTROVERSIAL FRENCH DRUG TO A RESEARCH ORGANIZATION FOR DISTRIBUTION IN THE US A MAJOR STEP TOWARD ITS EVENTUAL MARKETING HERE UNDER AN AGREEMENT REACHED YESTERDAY BETWEEN THE COMPANY AND THE POPULATION COUNCIL A NEW YORKBASED INTERNATIONAL RESEARCH ORGANIZATION THE COUNCIL PLANS TO CONDUCT CLINICAL TRIALS THAT WILL INVOLVE AT LEAST 2000 AMERICAN WOMEN AND COULD BEGIN WITHIN A COUPLE OF MONTHS MEANWHILE THE COUNCIL WILL BEGIN SEEKING A MANUFACTURER TO MARKET THE DRUG IN THIS COUNTRY FOLLOWING APPROVAL BY THE FOOD AND DRUG ADMINISTRATION WHILE ROUSSELUCLAF A UNIT OF HOECHST AG HAS AGREED TO MAKE ENOUGH DRUG FOR THE TRIALS IT ISN'T WILLING TO BE INVOLVED IN WIDER DISTRIBUTION ANNOUNCEMENT OF THE AGREEMENT WAS MADE BY FDA COMMISSIONER DAVID KESSLER AND MARGARET CATLEYCARLSON PRESIDENT OF THE COUNCIL FOLLOWING A MEETING AT FDA HEADQUARTERS WITH EDOUARD SAKIZ PRESIDENT OF ROUSSELUCLAF DISTRIBUTION OF THE DRUG IN THE US WOULD MARK A SHIFT FROM A YEAR AGO WHEN THE COMPANY CITING THE BUSH ADMINISTRATION'S OPPOSITION TO ABORTION REFUSED TO ALLOW THE DRUG INTO THE US UNDER PRESIDENT CLINTON WHO SUPPORTS ABORTION RIGHTS THE FDA HAS MADE CLEAR IT WOULD WELCOME AN APPLICATION TO MARKET THE PRODUCT SUPPORTERS OF THE ABORTION PILL HAILED THE AGREEMENT REP RON WYDEN SAID IT IS GOOD THAT HOECHST HAS CROSSED THE THRESHOLD BY AGREEING TO ALLOW THE TRIALS TO BEGIN BUT THE OREGON DEMOCRAT EXPRESSED CONCERN THAT THE COMPANY WOULDN'T AGREE TO MARKET THE DRUG ITSELF A DECISION HE PREDICTED COULD SIGNIFICANTLY DELAY THE MARKETING APPROVAL PROCESS ELEANOR SMEAL PRESIDENT OF THE FEMINIST MAJORITY FOUNDATION CALLED THE ANNOUNCEMENT A MAJOR MILESTONE IN THIS WHOLE STRUGGLE TO GET THIS DRUG INTO THIS COUNTRY BUT SHE ALSO SAID SHE IS TROUBLED THE COUNCIL MUST FIND A MANUFACTURER FDA OFFICIALS SAID THEY COULDN'T PREDICT HOW LONG IT WOULD TAKE THE AGENCY TO REVIEW THE APPLICATION BUT COMMISSIONER KESSLER PROMISED IT WOULD BE HANDLED EXPEDITIOUSLY HE SAID THE AGENCY EXPECTS TO RECEIVE TOXICOLOGY AND CHEMISTRY INFORMATION ON THE DRUG SOON FROM ROUSSELUCLAF AND WILL BEGIN REVIEWING IT OFFICIALS HAVE SAID THERE IS ALREADY CONSIDERABLE DATA ON THE SAFETY AND EFFICACY OF THE ABORTION PILL FROM TRIALS CONDUCTED IN EUROPE IT COULD TAKE SOME TIME TO FIND A SUITABLE US MANUFACTURER ALTHOUGH THE ORGANIZATION HAS ALREADY IDENTIFIED SOME POTENTIAL COMPANIES THE POPULATION COUNCIL ALSO NEEDS FDA APPROVAL BEFORE IT CAN BEGIN THE CLINICAL TRIALS MS CATLEYCARLSON SAID THE ORGANIZATION EXPECTS TO SUBMIT AN APPLICATION WITHIN WEEKS SHE SAID IT WILL WORK WITH THE FDA AND WOMEN'S HEALTH GROUPS TO IDENTIFY PHYSICIANS AND CLINICS WHERE THE TRIALS COULD OCCUR THE COUNCIL PLANS TO TEST THE PILL IN A VARIETY OF SETTINGS INCLUDING IN SOME CLINICS THAT PROVIDE ABORTIONS AND OTHERS THAT DON'T WE WILL DESIGN A PROTOCOL THAT BALANCES SAFETY WITH AVAILABILITY MS CATLEYCARLSON SAID IN PART THE TRIALS WILL BE DESIGNED TO HELP TRAIN PHYSICIANS AND TO FIGURE OUT HOW BEST TO MAKE THE PILL AVAILABLE THROUGH THE US HEALTHCARE DELIVERY SYSTEM IN FRANCE AND BRITAIN THE DRUG IS RESTRICTED TO SPECIAL CLINICS ROUSSEL'S AGREEMENT TO TRANSFER TECHNOLOGY TO THE COUNCIL IS BASED ON A PREVIOUS AGREEMENT BETWEEN THE COMPANY AND THE ORGANIZATION SOME EARLIER CLINICAL TRIALS THAT THE COUNCIL WAS CONDUCTING WERE HALTED BY THE COMPANY IN 1990 9304210049 930421 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY SCOTT R SCHMEDEL A PRIVATE COMPANY WILL DUN DELINQUENTS IN A TEST BUT WON'T HANDLE MONEY THE IRS'S FISCAL1994 BUDGET PROPOSES 125 MILLION TO TEST COLLECTION AID BY PRIVATE CONCERNS YESTERDAY THE IRS DISCLOSED SOME DETAILS OF ITS PLAN AND SAID IT WILL SEEK BIDS ON THE ONEYEAR JOB THIS SUMMER IT WILL PICK ONE COMPANY TO GO AFTER ABOUT 125000 DELINQUENTS WHO HAVEN'T YIELDED TO IRS EFFORTS OR COULDN'T BE LOCATED THE COMPANY WILL TRACE AND CALL DEADBEATS IN ROUTINE CASES BUT IT WON'T COLLECT ANY MONEY PAYMENTS WILL GO STRAIGHT TO THE IRS THE COMPANY WON'T HAVE ACCESS TO RETURNS OR IRS COMPUTERS AND WILL GET LIMITED INFORMATION NAMES ADDRESSES SOCIAL SECURITY NUMBERS AMOUNTS OWED AND YEARS INVOLVED THE COMPANY WON'T HAVE ANY IRS ENFORCEMENT POWERS SUCH AS ISSUING SUMMONSES IMPOSING LIENS OR MAKING SEIZURES THERE WON'T BE ANY ADDITIONAL CHARGE TO DELINQUENTS THE IRS SAID AFTER A YEAR THE IRS WILL STUDY WHETHER THE PROGRAM HAS HELPED IMPROVE COMPLIANCE AND REDUCE ACCOUNTS RECEIVABLE TAXPAYER SATISFACTION WITH THE COMPANY'S SERVICES WILL BE A FACTOR IN DETERMINING SUCCESS THE IRS ADDED US UNITS OF FOREIGN CONCERNS ARE HIT BY A RETROACTIVE BUDGET PROPOSAL THE CLINTON ADMINISTRATION'S REVISED REVENUE PLAN SEEKS EVEN MORE FROM INTERNATIONAL CONCERNS BY TINKERING WITH ITS FIRST PROPOSALS ONE OF THEM WAS TO RESTRICT FURTHER THE DEDUCTION BY FOREIGNCONTROLLED CORPORATIONS OF INTEREST PAID TO PARENT COMPANIES AND RELATED FOREIGN LENDERS IT WOULD TIGHTEN A 1989 LAW THAT IS DESIGNED TO KEEP TAXABLE PROFIT FROM BEING DISGUISED AS TAXFREE INTEREST EXPENSE AND SENT ABROAD THE 1989 LAW APPLIES ONLY TO DEBT ISSUED AFTER JULY 10 1989 BUT THE AMENDED BUDGET WOULD APPLY THE 1989 LAW RETROACTIVELY TO DEBT EXISTING BEFORE THAT DATE THAT IS AN UNPRECEDENTED REPEAL OF GRANDFATHER PROTECTION FOR PRELAW CONDITIONS AND IT WOULD PROVIDE A BASIS FOR REPEAL OF MANY EFFECTIVE DATES IN THE TAX CODE WARNS NEW YORK LAWYER JOHN CORRY OF DAVIS POLK & WARDWELL DENNIS ROSS OF THAT FIRM FORESEES A CHILLY RECEPTION IN CONGRESS THE IRS DROPS PLANS TO EASE DREADED RESEARCH AUDITS AT THE GAO'S URGING IRS CRITERIA FOR ENFORCEMENT AND AUDIT SELECTION STEM FROM THE TAXPAYER COMPLIANCE MEASUREMENT PROGRAM WHICH PERIODICALLY SUBJECTS A CROSS SECTION OF RETURNS TO INTENSE LINEBYLINE AUDITS LAST FALL THE IRS SAID NEW STATISTICAL AND COMPUTER METHODS WOULD LET IT EASE TAXPAYERS' BURDENS NEXT TIME BY SKIPPING SOME LINES AND CUTTING THE NUMBER OF PERSONAL TCMP AUDITS TO 25000 FROM 54000 BUT THE GENERAL ACCOUNTING OFFICE HAS COME DOWN HARD ON THOSE PLANS AND NOW THE IRS HAS BACKED OFF BECAUSE 54000 RETURNS ARE RELATIVELY FEW THE GAO SEES LITTLE MERIT IN IRS CONCERNS THAT TCMP IS TOO COSTLY AND OVERBURDENS COMPLIANT FILERS THE GAO SAYS PROGRAM CUTS WOULD MAKE ESTIMATES OF VOLUNTARY COMPLIANCE FAR LESS PRECISE AND WOULD LOWER THE ACCURACY OF AUDITSELECTION FORMULAS THE IRS HASN'T SHOWN THAT ITS NEW METHODS WILL WORK THE GAO ADDS IN REPLY THE IRS SAYS IT WON'T MAKE THE CHANGES FOR THE NEXT AUDITS NOW AIMED AT 1993 RETURNS THE GAO ALSO FRETS ABOUT THE DELAY IN TCMP AUDITS NOW THE INTERVAL WILL BE FIVE YEARS INSTEAD OF THE USUAL THREE FILERS LIVING ABROAD NEEDN'T SEND US RETURNS UNTIL JUNE 15 NOW THE IRS OFFERS AN EXTENSION TO AUG 16 WITHOUT FULL PAYMENT OF TAXES BY JUNE 15 UNDER THE TERMS OFFERED TO US RESIDENTS INTEREST WILL APPLY AS MAY A LATEPAYMENT PENALTY FILERS MUST SEND FORM 4868 BY JUNE 15 TAX COUNSELING FOR THE ELDERLY A VOLUNTEER PROGRAM RUN WITH IRS GRANTS OF 3 MILLION HELPED DO 462304 RETURNS IN 1992 IT MATCHED THE 97 ACCURACY RATE OF IRS OFFICES WHICH HELPED DO ONLY 112868 RETURNS THE GAO SAYS AARP THE PROGRAM'S PRIME MOVER GOT 27 MILLION OF THE GRANTS FORGIVEN DEBTS CREATE TAXABLE INCOME FOR RELIEVED BORROWERS BUT FEW REPORT IT THE GAO ADVISES CONGRESS TO REQUIRE FEDERAL DEPOSIT INSURANCE CORP RESOLUTION TRUST CORP AND PRIVATE LENDERS TO REPORT CANCELLATIONS OF DEBT TO THE IRS SCORPORATION STOCK SOLD BY TRUSTS MAY FACE A BIG UNSUSPECTED TAX BURDEN THE ISSUE INVOLVES INSTALLMENT PAYMENTS FOR STOCK AND MAY AFFECT OVER HALF OF THESE CLOSELY HELD COMPANIES SAYS RICK TAYLOR OF KPMG PEAT MARWICK CPAS SCONCERNS ARE TAXED MUCH LIKE PARTNERSHIPS ON CERTAIN CONDITIONS ONE RESTRICTS TRUSTS' OWNERSHIP OF STOCK LAST FALL IRS REVENUE RULING 9284 DISCUSSED TRUSTS' SALES OF STOCK AND SEEMED HARMLESS TAYLOR SAYS BUT NOW A TECHNICAL IRS INTERPRETATION CAN THRUST AN UNEXPECTED BURDEN ON BENEFICIARIES OF CERTAIN TRUSTS TO COUNTER THE IRS TAYLOR SAYS PROPER PLANNING MAY SPREAD THE TAXES OVER THE INSTALLMENTINCOME PERIOD BRIEFS LEWIS FURER OF ANAHEIM CALIF CAN'T CLAIM AN ORDINARY CASUALTY LOSS ON STOCKS FROM THE MARKET CRASH OF OCT 19 1987 INSTEAD OF A CAPITAL LOSS THE TAX COURT RULES OVER ONE MILLION OF 20 MILLION RETURNS FILED IN CANADA LAST WEEK WERE SENT IN ELECTRONICALLY 9304210048 930421 BUSINESS BRIEF INTEGRATED HEALTH SERVICES INC FIRM SAYS IT'S COMFORTABLE' WITH FORECAST OF HIGHER NET INTEGRATED HEALTH SERVICES INC IS VERY COMFORTABLE WITH ANALYSTS' EXPECTATIONS FOR FIRSTQUARTER EARNINGS OF 29 CENTS TO 30 CENTS A SHARE ROBERT N ELKINS CHAIRMAN AND CHIEF EXECUTIVE SAID DR ELKINS ALSO SAID HE'S COMFORTABLE WITH ANALYSTS' ESTIMATES FOR THE REST OF THE YEAR WHICH CALL FOR GRADUAL INCREASES IN PERSHARE EARNINGS TO 37 CENTS A SHARE BY THE FOURTH QUARTER FOR THE FULL YEAR THE CONSENSUS IS FOR 132 A SHARE INTEGRATED A HUNT VALLEY MD PROVIDER OF SUBACUTE CARE TO PATIENTS OUTSIDE HOSPITALS HAD 1992 FIRSTQUARTER EARNINGS OF 21 MILLION OR 22 CENTS A SHARE ON REVENUE OF 43 MILLION FOR THE FULL YEAR 1992 IT REPORTED NET OF 93 MILLION OR 81 CENTS A SHARE INCLUDING A CHARGE OF 23 CENTS A SHARE FOR DEBT RETIREMENT AT 29 CENTS TO 30 CENTS PERSHARE EARNINGS FOR THIS YEAR'S FIRST QUARTER WOULD MEAN NET INCOME OF ABOUT 35 MILLION TO 37 MILLION BASED ON 122 MILLION SHARES OUTSTANDING INTEGRATED ADDED ABOUT 26 MILLION SHARES OUTSTANDING IN APRIL 1992 WITH A SECONDARY PUBLIC OFFERING DR ELKINS IN AN INTERVIEW SAID WE'RE HAPPY WITH ANALYSTS' EXPECTATIONS OF 30 TO 35 GROWTH IN PERSHARE EARNINGS FROM CONTINUING OPERATIONS THIS YEAR AND 25 TO 30 GROWTH DURING 1994 AND 1995 9304210047 930421 BUSINESS BRIEF MARTIN MARIETTA CORP ACCOUNTING CHANGE RESULTS IN DEFICIT FOR FIRST QUARTER MARTIN MARIETTA CORP REPORTED A FIRSTQUARTER NET LOSS OF 3356 MILLION OR 708 A SHARE AFTER A CHARGE RELATED TO THE ADOPTION OF A NEW ACCOUNTING STANDARD IN THE 1992 FIRST QUARTER THE COMPANY EARNED 746 MILLION OR 151 A SHARE BEFORE THE ONETIME 412 MILLION CHARGE EQUIVALENT TO 869 A SHARE THE BETHESDA MD AEROSPACE COMPANY HAD A PROFIT IN THIS YEAR'S FIRST QUARTER OF 764 MILLION OR 161 A SHARE SALES IN THE QUARTER SLIPPED TO 117 BILLION FROM 137 BILLION BACKLOG AT THE END OF THE QUARTER WAS 92 BILLION UP FROM 89 BILLION AT THE END OF 1992 THE NEW ACCOUNTING STANDARD IMPOSES A ONETIME CUMULATIVE ADJUSTMENT FOR RETIREE HEALTH BENEFITS ATTRIBUTABLE TO PRIOR YEARS MARTIN MARIETTA ELECTED TO RECORD THE SINGLE CHARGE RATHER THAN AMORTIZE THE TRANSITION EXPENSE OVER FUTURE OPERATIONS 9304210046 930421 WORKPLACE SECRETARIES SAY THIS IS A DAY TO FORGET BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL DELORES CROPPER A ST LOUIS SECRETARY EXPECTS TO GET FLOWERS FROM HER BOSS TODAY SHE WOULD RATHER HIDE UNDER HER DESK TODAY IS MS CROPPER'S 20TH PROFESSIONAL SECRETARIES DAY BUT SHE ISN'T CELEBRATING I JUST CRINGE AND WAIT FOR THE DAY TO PASS SHE SAYS I'D PERSONALLY LIKE TO SEE IT DONE AWAY WITH COMPLETELY SHE ADDS THAT SHE IS CONSIDERING ORGANIZING A GROUP OF SECRETARIES TO PUT A STOP TO IT MANY OF THOSE WHOM SECRETARIES DAY IS MEANT TO RECOGNIZE DON'T LOOK FORWARD TO THIS TIME OF YEAR THEY SAY THE DAY TRIVIALIZES THEIR JOB AND GOOD WORK SHOULD BE REWARDED BY A RAISE OR TIME OFF BESIDES THE FLOWERS THEY GET ARE OFTEN HASTILY BOUGHT WITH LITTLE THOUGHT LUNCHES WITH THE BOSS ARE UNCOMFORTABLE AND WHO WANTS A GIFT SOMEONE FEELS PRESSURED TO BUY WHEN PROFESSIONAL SECRETARIES INTERNATIONAL A KANSAS CITY MO ORGANIZATION STARTED SECRETARIES DAY IN 1952 GROUP MEMBERS DIDN'T HAVE GIFT GIVING IN MIND THEY WANTED TO RAISE AWARENESS OF THE FIELD AT A TIME WHEN SECRETARIES WERE SCARCE SECRETARIES AND ADMINISTRATIVE ASSISTANTS NOW NUMBER NEARLY FOUR MILLION SOON HOWEVER FLORISTS AND THE GREETINGCARD INDUSTRY JUMPED ON THE BANDWAGON GIFTS THAT BEGAN AS SINGLE ROSES HAVE MUSHROOMED INTO 50 BOUQUETS NEWSPAPERS ARE FILLED WITH ADS FROM FLORISTS AND CARD SHOPS MAKING SURE BOSSES DON'T GET OFF GUILTFREE MANY SECRETARIES NOW COMPLAIN THE DAY IS TOO COMMERCIALIZED IT BELITTLES US SAYS JOY PONDER A SECRETARY FOR DALLAS'S RYDER AIRLINE SERVICES INC THE MESSAGE IS LET'S KEEP THOSE LITTLE GIRLS HAPPY GIVE THEM SOME FLOWERS A 1991 SURVEY OF SECRETARIES BY PROFESSIONAL SECRETARIES INTERNATIONAL FOUND THAT 77 OF THEM GOT A MEAL FROM THE BOSS AND MORE THAN HALF RECEIVED FLOWERS BUT FEWER THAN 10 WANTED EITHER THE DAY MAY ALSO BE BEHIND THE TIMES ADMINISTRATIVE ASSISTANT IS MORE THAN A GUSSIEDUP TITLE ACCORDING TO A RECENT SURVEY BY OFFICETEAM A MENLO PARK CALIF STAFFING SERVICE FIFTYEIGHT PERCENT OF SENIOR MANAGERS SAID ADMINISTRATIVE ASSISTANTS EXERCISE MORE INFLUENCE ON EXECUTIVE BUSINESS DECISIONS NOW THAN THEY DID FIVE YEARS AGO AND 79 SAID THE USE OF THE TITLE SECRETARY HAS DECREASED IN THE PAST FIVE YEARS THESE DAYS THE LINES IDENTIFYING SECRETARIES ARE BLURRING AS COMPANIES PARE STAFF AND MANAGERS ASSUME MORE SECRETARIAL RESPONSIBILITIES AS A RESULT SECRETARIES DAY IS A LITTLE BIT OUTMODED SAYS ARNOLD J THUE VICE PRESIDENT FINANCE AND TREASURER OF RAVEN INDUSTRIES INC SIOUX FALLS SD WE AVOID THE FLOWER THING BECAUSE IT'S HARD TO KNOW FOR SURE WHO SHOULD BE INCLUDED AND WHO SHOULDN'T EVEN MEMBERS OF PROFESSIONAL SECRETARIES INTERNATIONAL HAVE QUESTIONED THE DAY'S VALIDITY IN RECENT YEARS SAYS EVELYNNE THOMPSON THE GROUP'S PRESIDENT BUT THE ORGANIZATION CONTINUES TO SPONSOR IT BECAUSE IF WE DON'T SOMEONE ELSE WILL TAKE IT OVER AND WHO KNOWS WHAT WOULD HAPPEN MS THOMPSON SAYS SHE URGES SECRETARIES TO REQUEST BONUSES OR TIME OFF TO ATTEND THE EDUCATIONAL SEMINARS THAT HER GROUP AND OTHERS SPONSOR THIS WEEK INSTEAD OF THE USUAL FLOWERS AND LUNCH THAT MANY SECRETARIES STRONGLY RESENT SECRETARIES DAY WAS MADE CLEAR TO DALE DAUTEN WHO WRITES THE SYNDICATED CORPORATE CURMUDGEON COLUMN THAT APPEARS IN NEWSPAPERS NATIONWIDE HE ASSERTED RECENTLY THAT MANAGERS ARE RELUCTANTLY CELEBRATING WITH SECRETARIES WHO WOULD JUST AS SOON FORGET THE WHOLE THING AMONG HIS MAIL WAS THIS COMMENT FROM JACQUELINE DRYE WHO WORKS AT A MINNEAPOLIS REHABILITATION FACILITY A DAY SET ASIDE FOR POSIES OR LUNCH IS TANTAMOUNT TO SAYING HEY I'M SO INSIGNIFICANT AND VALUELESS THERE'S A DAY SET ASIDE TO REMIND YOU I EXIST' MS DRYE TOLD HER MANAGER SHE WOULD RATHER NOT CELEBRATE THE DAY FOR BOSSES SECRETARIES DAY CAN BRING A DIFFERENT SORT OF UNPLEASANTNESS THOUGH SOME SECRETARIES DISLIKE GETTING GIFTS OTHERS TAKE OFFENSE IF THEY AREN'T REMEMBERED MS PONDER OF DALLAS AND SOME COLLEAGUES ONCE SPENT A WHOLE DAY ASSURING THE ONE FORGOTTEN SECRETARY IN HER AREA THAT THE WOMAN'S BOSS WAS PROBABLY TOO BUSY TO SEND FLOWERS HERE WE WERE COVERING UP FOR SOMETHING THAT MOST OF US DIDN'T BELIEVE IN IN THE FIRST PLACE SHE SAYS MANAGERS CERTAINLY FEEL PRESSURE FROM PEOPLE IN THE OFFICE SAYS RON SERSEN OWNER OF LASALLE FLOWERS IN DOWNTOWN CHICAGO A BOSS WILL SEE THAT THE SECRETARY ACROSS THE HALL HAS SOMETHING ON HER DESK AND HIS SECRETARY IS GIVING HIM DIRTY LOOKS THAT BRINGS MR SERSEN A TON OF BUSINESS ESPECIALLY A LOT OF FRANTIC LASTSECOND CALLS FROM BOSSES IT RANKS RIGHT UP THERE WITH VALENTINE'S DAY AND MOTHER'S DAY HE SAYS BUT HE SAYS HE HASN'T HEARD ANY COMPLAINTS OF COMMERCIALIZATION ADDING SOME PEOPLE ALWAYS HAVE TO MARCH ABOUT SOMETHING LUNCH ALSO CAN BE TROUBLESOME LORA DOW A RETIRED SECRETARY LIVING IN SANDIA PARK NM TELLS OF A TIME WHEN HER BOSS CAME CHARGING IN AFTER FINDING OUT ABOUT SECRETARIES DAY AND INSISTED ON LUNCH HE WASN'T ABOUT TO HAVE THE OTHER BOSSES CALLING HIM A CHEAPSKATE SHE SAYS AT THE RESTAURANT HE REALIZED HE DIDN'T HAVE ENOUGH MONEY AND HAD TO BORROW 20 FROM HER IF I WERE FRIENDS WITH MY BOSS I'D GO OUT WITH HIM ANYWAY IF NOT IT MIGHT BE UNCOMFORTABLE SAYS MRS DOW ADDING I'VE ALSO SEEN THE WIVES GET A LITTLE INDIGNANT ABOUT IT BUT RESTAURANTS CERTAINLY BENEFIT PEGGY MCATAMNEY GENERAL MANAGER OF TRATTORIA NO 10 IN CHICAGO SAYS SECRETARIES WEEK FOR WHEN A DAY ISN'T ENOUGH RANKS AS ONE OF THE RESTAURANT'S BUSIEST AS EARLY AS MONDAY BOSSANDSECRETARY TEAMS WITHOUT RESERVATIONS HAD TO WAIT MORE THAN AN HOUR TO BE SEATED IN ST CHARLES MO WILIKER'S RESTAURANT AIMS TO ATTRACT BUSINESS THIS WEEK BY HANDING OUT RED ROSES AND NOTE PADS THOUGH MANY SECRETARIES CAN'T STAND THE DAY THEY DON'T WANT TO SHARE IT THEY OFTEN RESENT BOSSES WHO ALSO LUMP IN CLERKS RECEPTIONISTS AND STENOGRAPHERS ANY FEMALE IN THE OFFICE CAPABLE OF IDENTIFYING THE ON' BUTTON ON AN OFFICE MACHINE SAYS MILDRED HILLMAN A SECRETARY FOR NEARLY 50 YEARS NOW LIVING IN TUCSON ARIZ BACHMAN'S FLORIST IN MINNEAPOLIS SAYS COMPANIES ARE BUYING BUD VASES BY THE DOZENS FOR THE ENTIRE STAFF NOT EVERYONE WILL TURN UP THEIR NOSES AT FLOWERS TODAY AT LEAST IT'S SOMETHING SAYS LAURIE KEIDY A SECRETARY FOR SIMULATION SCIENCES INC FULLERTON CALIF WHOSE BEST GIFT WAS A COMEDY CLUB LUNCHEON WITH HER BOSS LAST YEAR SHE HAS HAD MANAGERS HOWEVER WHO'VE HAD THE GALL TO FORGET MS KEIDY'S REVENGE I JUST BLEW OFF HIS BIRTHDAY 9304210045 930421 BUSINESS BRIEF CONNER PERIPHERALS INC FIRM POSTS 1STQUARTER LOSS WILL CUT WORK FORCE BY 10 CONNER PERIPHERALS INC SAID IT POSTED A FIRSTQUARTER LOSS BECAUSE OF A 364 MILLION RESTRUCTURING CHARGE THE COMPANY ALSO SAID IT WOULD CUT ITS WORK FORCE BY 10 THE SAN JOSE CALIF DISK DRIVE CONCERN SAID THE ONETIME CHARGE RESULTED IN A NET LOSS FOR THE QUARTER OF 225 MILLION OR 46 CENTS A SHARE IN THE YEAREARLIER PERIOD THE COMPANY EARNED 247 MILLION OR 40 CENTS A SHARE SALES ROSE 27 TO 5583 MILLION FROM 4411 MILLION CONNER SAID THE CHARGE INCLUDES 17 MILLION FOR THE ELIMINATION OF CERTAIN DISK AND TAPE PRODUCTS ABOUT 9 MILLION FOR CONSOLIDATION OF FACILITIES AND ABOUT 10 MILLION FOR SEVERANCE COSTS MOST OF CONNER'S APPROXIMATELY 12000 EMPLOYEES WORK IN SINGAPORE OR MALAYSIA AS CONTRACT WORKERS A COMPANY SPOKESMAN SAID MOST OF THE STAFF CUTS WILL AFFECT OVERSEAS WORKERS THE COMPANY SAID IT IS BEING HURT BY PRICE COMPETITION AND A MAJOR SHIFT IN DEMAND FOR HIGHER CAPACITY PRODUCTS THE QUARTER'S RESULTS ALSO WERE AFFECTED BY CONNER'S DECISION TO WITHHOLD A LARGE QUANTITY OF SHIPMENTS OF DISK DRIVES TO ITS EUROPEAN DISTRIBUTOR IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY CONNER SHARES WERE QUOTED AT 13625 UP 1 9304210044 930421 INTERNATIONAL BRIEF SAN MIGUEL CORP INVESTMENTS ARE SCHEDULED IN VIETNAM GUAM CHINA SAN MIGUEL CORP A PHILIPPINE FOOD AND PACKAGING CONGLOMERATE DISCLOSED PLANS TO INVEST IN VARIOUS PROJECTS TOTALING ABOUT 58 MILLION IN VIETNAM GUAM AND CHINA DURING THE ANNUAL STOCKHOLDERS MEETING ANDRES SORIANO III CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY IS GEARING UP FOR A JOINTVENTURE BREWERY IN VIETNAM A JOINT VENTURE IN SHRIMP FEED IS ALSO BEING COMPLETED IN SOUTHERN CHINA AND THE COMPANY RECENTLY SIGNED UP FOR A JOINT VENTURE IN THE US TERRITORY OF GUAM THE VIETNAMESE BREWERY IS THE BIGGEST PROJECT WITH A COST OF 48 MILLION MEANWHILE A GOVERNMENT AGENCY THAT HOLDS 51 OF SAN MIGUEL'S EQUITY REPRESENTING SEQUESTERED SHARES TURNED DOWN THE PROPOSAL OF THE SORIANO GROUP TO AMEND THE COMPANY'S BYLAWS ALLOWING A MAJORITY VOTE INSTEAD OF A TWOTHIRDS VOTE FROM SHAREHOLDERS ON CERTAIN LARGE INVESTMENTS OR ON THE SALE OF THE COMPANY'S INTERESTS IN VARIOUS SUBSIDIARIES AND AFFILIATES 9304210043 930421 BUSINESS BRIEF WEAN INC COMPANY REPORTS DEFICIT OF 13 MILLION IN 1ST QUARTER WEAN INC CITING LOW ORDER AND SHIPMENT LEVELS POSTED A LOSS OF 13 MILLION OR 47 CENTS A SHARE FOR THE FIRST QUARTER A YEAR EARLIER THE PITTSBURGH MAKER OF STEELPROCESSING EQUIPMENT HAD A LOSS OF 164 MILLION OR 535 A SHARE WHICH INCLUDED A GAIN FROM A TAXLOSS CARRYFORWARD OF 389000 OR 13 CENTS A SHARE AND A NONCASH CHARGE OF 142 MILLION OR 459 A SHARE TO CHANGE THE WAY THE COMPANY ACCOUNTS FOR RETIREE HEALTH BENEFITS REVENUE ROSE 43 TO 134 MILLION FROM 94 MILLION A YEAR EARLIER WEAN ALSO SAID IT IS MEETING WITH AN INFORMAL COMMITTEE REPRESENTING HOLDERS OF 17 MILLION FACE AMOUNT OF THE COMPANY'S DEBT WHICH INCLUDES 5 1/2 SUBORDINATED DEBENTURES 10 SUBORDINATED NOTES AND 12 SUBORDINATED NOTES WEAN HAS DEFAULTED ON THE DEBT AND SEVERAL ATTEMPTS TO RESTRUCTURE IT HAVE FAILED 9304210042 930421 BUSINESS BRIEF PEPSICO INC TACO BELL FASTFOOD UNIT PLANS A FULLSERVICE CHAIN TACO BELL CORP THE MEXICANSTYLE FASTFOOD CHAIN SAID IT PLANS TO EXPAND INTO THE FULLSERVICE RESTAURANT BUSINESS TACO BELL A PEPSICO INC UNIT BASED IN IRVINE CALIF SAID IT PLANS TO OPEN AT LEAST 300 MEXICAN DINNERHOUSES WITHIN THE NEXT FIVE YEARS THE COMPANY SAID IT IS ACTIVELY LOOKING TO ACQUIRE SMALLER SITDOWN MEXICAN RESTAURANT CHAINS IN RECENT YEARS TACO BELL EXPERIMENTED WITH A FULLSERVICE RESTAURANT CALLED SALSA RIO GRILL BUT ABANDONED THE PROJECT TO SPEARHEAD DEVELOPMENT TIM RYAN TACO BELL'S SENIOR VICE PRESIDENT OF MARKETING WAS PROMOTED TO SENIOR VICE PRESIDENT OF THE FULLSERVICE DINING CONCEPT PRIOR TO JOINING TACO BELL IN THE LATE 1980S MR RYAN WAS AN EXECUTIVE WITH GENERAL MILL'S OLIVE GARDEN DIVISION AND THE MAGIC PAN DINNERHOUSE CHAIN 9304210041 930421 INTERNATIONAL BRIEF UNION DES ASSURANCES DE PARIS NET PLUNGED 71 IN 1992 DIVIDEND TRIMMED TO 148 FRENCH INSURER UNION DES ASSURANCES DE PARIS CONFIRMED A SHARP DROP IN 1992 NET INCOME 71 AND CUT ITS NET DIVIDEND TO EIGHT FRANCS 148 A SHARE FROM 11 FRANCS PAID OUT LAST YEAR MANY ANALYSTS WHO HAD EXPECTED UAP TO HOLD THE DIVIDEND STEADY SAID THE CUT IN PAYOUT INDICATES UAP IS BUCKLING DOWN FOR A TOUGH YEAR NET INCOME FELL TO 108 BILLION FRANCS FROM 377 BILLION A RESULT THAT WAS SLIGHTLY LOWER THAN MARKET WATCHERS HAD EXPECTED PREMIUM INCOME ROSE 20 TO 1259 BILLION FRANCS FROM 1053 BILLION UAP AND OTHER FRENCH INSURERS HAVE BEEN HIT BY THE COLLAPSE OF THE FRENCH REALESTATE MARKET OVER THE PAST 18 MONTHS THE COMPANY'S 1991 EARNINGS WERE ALREADY AFFECTED BY PROVISIONS AGAINST BAD REALESTATE RISKS AS PROFIT SAGGED 11 FROM 422 BILLION FRANCS A YEAR BEFORE 9304210040 930421 FINANCING BUSINESS HEILIGMEYERS CO HEILIGMEYERS CO SAID IT PLANS A PUBLIC OFFERING OF TWO MILLION SHARES TO RAISE FUNDS TO RETIRE DEBT AND TO FINANCE EXPANSION THE RICHMOND VA RETAILER OF HOME FURNISHINGS IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION SAID 16 MILLION SHARES WOULD BE OFFERED IN THE US AND THE REST WOULD BE OFFERED ABROAD HEILIGMEYERS SHARES CLOSED DOWN 175 YESTERDAY TO 33 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9304210039 930421 BUSINESS BRIEF MENTOR GRAPHICS CORP COMPANY POSTS A NET LOSS OF 43 MILLION FOR 1ST PERIOD STILL HURT BY THE LAGGING EFFECTS OF NEW PRODUCTS DELAYS AND POOR SALES IN THE PREVIOUS QUARTER MENTOR GRAPHICS CORP REPORTED A FIRSTQUARTER NET LOSS OF 43 MILLION OR NINE CENTS A SHARE IN THE YEARAGO PERIOD THE MAKER OF COMPUTER SYSTEMS IN WILSONVILLE ORE REPORTED NET INCOME OF 12 MILLION OR THREE CENTS A SHARE REVENUE DROPPED 175 TO 826 MILLION FROM 1001 MILLION A YEAR AGO HOWEVER THE MAKER OF SOFTWARE USED IN ELECTRONIC CIRCUIT DESIGNS SAID THAT SOFTWARE REVENUE INCREASED SLIGHTLY OVER LAST QUARTER BUT FELL 29 TO 488 MILLION FROM 676 MILLION IN THE YEARAGO QUARTER THE COMPANY SAID IT EXPECTS TO SEE EARNINGS IMPROVE FOLLOWING THE STRONG SUPPORT AND MOMENTUM GAINS FROM SOFTWARE ORDERS IT SHIPPED IN FEBRUARY IN OVERTHECOUNTER TRADING YESTERDAY MENTOR GRAPHICS CLOSED UP 625 CENTS TO 8625 A SHARE 9304210038 930421 BUSINESS BRIEF AVON PRODUCTS INC WIDER FIRSTQUARTER LOSS RESULTED FROM TWO CHARGES AVON PRODUCTS INC POSTED A WIDER LOSS IN THE FIRST QUARTER DUE TO TWO CHARGES ONE FOR AN ACCOUNTING CHANGE AND THE OTHER FOR AN ARBITRATION AWARD AGAINST THE COMPANY THE NEW YORK MARKETER OF COSMETICS GIFTS AND ACCESSORIES POSTED A NET LOSS OF 929 MILLION OR 129 A SHARE COMPARED WITH A NET LOSS OF 421 MILLION OR 59 CENTS A SHARE LAST YEAR THIS YEAR'S QUARTER INCLUDED A 1075 MILLION NONCASH CHARGE FOR CHANGES IN ACCOUNTING FOR POSTRETIREMENT BENEFITS AND INCOME TAXES AS WELL AS A 10 MILLION CHARGE TO DISCONTINUED OPERATIONS FOR AN AWARD IN A CALIFORNIA ARBITRATION PROCEEDING LAST YEAR'S QUARTER INCLUDED A 644 MILLION AFTERTAX RESTRUCTURING CHARGE EXCLUDING NONRECURRING ITEMS NET GREW 103 TO 246 MILLION FROM 223 MILLION SALES ROSE 4 TO 8419 MILLION WHATEVER IMPROVEMENT AVON GOT OUT OF THE FIRST QUARTER WAS DRIVEN BY STRONG SALES AND EARNINGS FROM THE LATIN AMERICAN REGION WHICH MADE UP 34 OF AVON'S EARNINGS LAST YEAR SALES IN THE US WHICH GENERATED 38 OF AVON'S EARNINGS LAST YEAR WERE FLAT AND IN EUROPE SALES AND PROFITS WERE HURT BY LOWER UNIT VOLUMES AND A STRONG DOLLAR 9304210037 930421 WHAT'S NEWS WORLDWIDE CLINTON ORDERED AN INVESTIGATION INTO THE DEATHS AT A TEXAS CULT COMPOUND THE PRESIDENT SAID THE JUSTICE DEPARTMENT AND THE TREASURY DEPARTMENT WOULD INVESTIGATE WHETHER ANYTHING COULD HAVE BEEN DONE DIFFERENTLY TO AVOID MONDAY'S MASSIVE FIRE THAT KILLED 86 PEOPLE AT A CULT COMPOUND IN WACO BUT CLINTON SAID THERE WAS NO NEED FOR ATTORNEY GENERAL RENO TO RESIGN BECAUSE SOME RELIGIOUS FANATICS MURDERED THEMSELVES HE SAID HE HAD APPROVED PLANS FOR THE FBI TO PUMP TEAR GAS INTO THE COMPOUND AND WOULD ACCEPT FULL RESPONSIBILITY BUT HE CALLED CULT LEADER KORESH DANGEROUS IRRATIONAL AND PROBABLY INSANE THE FBI SAID SURVIVORS' STATEMENTS WERE INCONCLUSIVE ON THE APPARENT MASS SUICIDE RAISING THE QUESTION OF WHETHER KORESH AND A FEW OF HIS FOLLOWERS HAD MURDERED THE REST CROATMUSLIM FIGHTING SPREAD FROM CENTRAL TO SOUTHWESTERN BOSNIA ON THE FIFTH DAY OF COMBAT THAT HAS KILLED 200 PEOPLE BUT A TRUCE WAS REPORTED LAST NIGHT SERBMUSLIM FIGHTING ALSO ERUPTED DESPITE INTERNATIONAL MEDIATION EFFORTS UN OFFICIALS SAID THERE WERE MINOR VIOLATIONS OF A CEASEFIRE AROUND THE MUSLIM TOWN OF SREBRENICA CLINTON CALLED IN TOP ADVISERS TO WEIGH A MORE AGGRESSIVE RESPONSE IN BOSNIA AS HIS LARGELY DIPLOMATIC APPROACH WAS CRITICIZED BY SOME WASHINGTON LAWMAKERS THE OPTIONS UNDER CONSIDERATION BY THE PRESIDENT INCLUDE AN ALLIED AIR ATTACK ON SERB ARTILLERY SITES SECRETARY OF STATE CHRISTOPHER SAID THE AFRICAN NATIONAL CONGRESS ACCUSED PRESIDENT DE KLERK OF FAILING TO STOP VIOLENCE AGAINST SOUTH AFRICA'S BLACKS THE OPPOSITION GROUP THREATENED PRESSURE UPON PRESSURE UNTIL NEW ELECTIONS ARE SET MEANWHILE DE KLERK CHARGED THAT THE ANC WAS TRYING TO WIN POLITICAL POINTS FROM THE APRIL 10 SLAYING OF BLACK ACTIVIST CHRIS HANI RESEARCHERS IN NEW YORK LINKED THE RISK OF BREAST CANCER TO EXPOSURE TO THE PESTICIDE DDT A FINDING THAT IS LIKELY TO RENEW THE CONTROVERSY OVER PESTICIDE USE AND ITS EFFECTS ON HUMAN HEALTH ALTHOUGH BANNED IN THE US IN 1972 DDT IS STORED IN THE BODY FOR DECADES A GOVERNMENT PANEL IS EXPECTED TO RECOMMEND TODAY THAT SCHOOLS START COLLECTING MORE COMPREHENSIVE DATA ON STUDENTS RANGING FROM THEIR BIRTH WEIGHT TO WHETHER THEY REGISTER TO VOTE AT AGE 18 THE PANEL ALSO WILL LIKELY SUGGEST THAT SCHOOLS START TREATING CITIZENSHIP AS A BASIC ACADEMIC SUBJECT GERMANY'S KOHL DECIDED TO SEND 1640 SOLDIERS TO ASSIST IN THE RECONSTRUCTION OF SOMALIA THE FIRST ARMED MISSION FOR GERMAN TROOPS OVERSEAS SINCE THE END OF WORLD WAR II A SPOKESMAN FOR THE CHANCELLOR SAID A SMALL CONTINGENT WOULD LEAVE FOR SOMALIA IN TWO WEEKS WITH THE REST OF THE SOLDIERS JOINING THE UN EFFORT BY THE END OF JUNE ROUSSELUCLAF AGREED TO LICENSE ITS ABORTION PILL RU486 TO A RESEARCH ORGANIZATION FOR DISTRIBUTION IN THE US A MAJOR STEP TOWARD EVENTUAL MARKETING OF THE FRENCH DRUG IN THIS COUNTRY RUSSIAN VICE PRESIDENT RUTSKOI OFFERED HIMSELF FOR THE FIRST TIME AS AN ALTERNATIVE TO YELTSIN SAYING IN PUBLISHED REMARKS THAT HE WOULD SEEK THE PRESIDENCY IF YELTSIN WERE FORCED TO RESIGN AFTER THIS SUNDAY'S REFERENDUM RUTSKOI ELECTED WITH YELTSIN IN 1991 HAS ALIGNED HIMSELF WITH THE OPPOSITION OHIO OFFICIALS AGREED TO CHANGE OR AT LEAST REVIEW RULES CITED BY HOSTAGEHOLDING INMATES OFFICIALS TOLD PRISONERS OF THE DECISION IN A MESSAGE BROADCAST REPEATEDLY OVER LOUDSPEAKERS THE INMATES HAVE OCCUPIED PART OF A LUCASVILLE PRISON SINCE APRIL 11 A MAFIA TURNCOAT ALLEGED THAT FORMER SEVENTIME ITALIAN PREMIER ANDREOTTI MET WITH A CONVICTED MAFIA LEADER SALVATORE RIINA IN THE LATE 1980S ANDREOTTI HAS BEEN UNDER INVESTIGATION FOR ALLEGED LINKS TO ORGANIZED CRIME MUSLIM EXTREMISTS IN EGYPT WIDENED THEIR WAR WITH THE SECULAR GOVERNMENT BY AMBUSHING A CABINET MINISTER OUTSIDE HIS HOME INFORMATION MINISTER ELSHERIF ESCAPED WITH MINOR INJURIES SIX UN MILITARY OBSERVERS LEFT TWO CAMBODIAN DISTRICTS CONTROLLED BY THE KHMER ROUGE BECAUSE OF GROWING HOSTILITY FROM THE RADICAL GUERRILLAS A UN SPOKESMAN SAID EIGHT UN STAFFERS INCLUDING A BULGARIAN PEACEKEEPER WHO DIED MONDAY HAVE BEEN SLAIN IN THE PAST THREE WEEKS IN ATTACKS BLAMED ON THE KHMER ROUGE 9304210036 930421 INTERNATIONAL BRIEF CRA LTD AUSTRALIA FIRM GETS CONTROL OF COAL & ALLIED INDUSTRIES CRA LTD AN AUSTRALIAN MINING COMPANY SAID IT GAINED CONTROL OF ITS TAKEOVER TARGET COAL & ALLIED INDUSTRIES LTD LIFTING ITS SHAREHOLDING TO 503 CRA IS OFFERING 1150 AUSTRALIAN DOLLARS US827 A SHARE FOR COAL & ALLIED OF WHICH IT PREVIOUSLY HELD ABOUT 40 THE OFFER VALUES COAL & ALLIED AT A716 MILLION COAL & ALLIED HAS REJECTED THE OFFER AS INADEQUATE BUT HAS CONCEDED CRA PROBABLY WOULD WIN CONTROL CRA IS 49OWNED BY RTZ CORP OF BRITAIN CRA SAID IT EXPECTS TO RECEIVE MORE ACCEPTANCES WITHIN THE NEXT FEW DAYS THE OFFER IS DUE TO CLOSE AT THE END OF THE LOCAL BUSINESS DAY NEXT TUESDAY IT SAID JAPANESE COAL COMPANIES AND USERS THAT TOGETHER OWN JUST UNDER 20 OF COAL & ALLIED HAVEN'T ACCEPTED THE OFFER 9304210035 930421 BUSINESS BRIEF UNION CAMP CORP FIRSTQUARTER NET INCOME FELL 51 SALES WERE FLAT UNION CAMP CORP WAYNE NJ SAID FIRSTQUARTER NET INCOME FELL 51 MAINLY AS A RESULT OF LOWER AVERAGE PRICES FOR ITS PRINCIPAL PAPER PRODUCTS PROFIT FELL TO 125 MILLION OR 18 CENTS A SHARE FROM 254 MILLION OR 37 CENTS A SHARE A YEAR EARLIER PRETAX OPERATING PROFIT FELL TO 484 MILLION FROM ABOUT 638 MILLION SALES WERE FLAT AT 7615 MILLION COMPARED WITH 7609 MILLION THE 1992 QUARTER INCLUDED A 57 MILLION SPECIAL PRETAX CHARGE AND A 40 MILLION AFTERTAX GAIN THAT INCLUDED THE EFFECT OF NEW ACCOUNTING STANDARDS GENE CARTLEDGE CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID DOMESTIC DEMAND FOR CORRUGATED CONTAINERS IS STRONG WITH FIRM PRICES HOWEVER HE SAID CURRENCY DISRUPTIONS IN THE EUROPEAN LINERBOARD MARKET HAVE RESULTED IN EXPORT PRICE DISCOUNTS AS WELL AS HIGHER INVENTORIES AND PRICE PRESSURE IN US MARKETS HE SAID THE SECOND QUARTER SHOULD SHOW CONTINUED STRENGTH IN CORRUGATED SHIPMENTS AND STEADY GROWTH IN DEMAND FOR UNCOATED BUSINESS PAPERS IN LATE NEW YORK STOCK EXCHANGE TRADING UNION CAMP ROSE 875 CENTS TO 46 9304210034 930421 HOUSE PANEL URGES SPEED TO FIGHT PENSION DEBT WASHINGTON THE CLINTON ADMINISTRATION IS ACTING TOO SLOWLY IN DECIDING HOW TO COPE WITH A GROWING DEFICIT OF THE GOVERNMENT'S PENSIONFUND REGULATORY AGENCY AN INFLUENTIAL HOUSE PANEL CHIEF CHARGED IN A HEARING BEFORE THE HOUSE OVERSIGHT SUBCOMMITTEE REP JJ PICKLE THE PANEL'S CHAIRMAN SAID LEGISLATION MUST BE ENACTED SOON TO HEAD OFF POSSIBLE UNRESTRICTED PENSION INCREASES THAT COULD EMERGE FROM AUTOINDUSTRY LABOR TALKS PLANNED FOR THIS SUMMER BUT MARTIN SLATE RECENTLY NAMED PENSION BENEFIT GUARANTY CORP EXECUTIVE DIRECTOR BY LABOR SECRETARY ROBERT REICH ESTIMATED THAT AN ADMINISTRATION TASK FORCE WOULDN'T BE READY UNTIL MIDSEPTEMBER TO ISSUE ITS RECOMMENDATIONS FOR RESOLVING THE UNDERFUNDING AND THE AGENCY'S FINANCIAL PROBLEMS UNDERFUNDING BY A NUMBER OF LARGE EMPLOYERS THREATENS TO FURTHER INFLATE THE 27 BILLION DEFICIT OF THE AGENCY REP PICKLE THE TEXAS DEMOCRAT SAID THE AGENCY INSURES DEFINEDBENEFIT PENSION PLANS TAKING OVER THEIR COMMITMENTS AFTER THOSE PLANS ARE TERMINATED IN BANKRUPTCY PROCEEDINGS OR OTHERWISE 9304210033 930421 BUSINESS BRIEF TELEGLOBE INC INVESTMENT SET FOR ORBITAL'S SATELLITEMESSAGE PROJECT TELEGLOBE INC AND ORBITAL SCIENCES CORP SAID THEY SIGNED A MEMORANDUM OF UNDERSTANDING CALLING FOR TELEGLOBE TO INVEST 80 MILLION IN ORBITAL'S PLANNED GLOBAL SATELLITECOMMUNICATIONS SYSTEM ORBITAL WOULD PROVIDE THE REST OF THE 135 MILLION IN FUNDING FOR THE SYSTEM DESIGNED TO OFFER LOWCOST TWOWAY DATA COMMUNICATION THROUGH A SET OF UP TO 26 SATELLITES USERS WOULD SEND AND RECEIVE MESSAGES THROUGH POCKETSIZED DEVICES AN ORBITAL SPOKESWOMAN SAID THE DULLES VA SPACETECHNOLOGY COMPANY EXPECTS TO LAUNCH THE FIRST TWO SATELLITES FOR THE US MARKET BY THE END OF THIS YEAR UNDER AN EXPERIMENTAL LICENSE GRANTED BY THE FEDERAL COMMUNICATIONS COMMISSION AN APPLICATION FOR AUTHORIZATION ON FULLSCALE SYSTEM IS PENDING TELEGLOBE MONTREAL IS CANADA'S EXCLUSIVE PROVIDER OF INTERNATIONAL TELECOMMUNICATIONS SERVICES WITH ALL COUNTRIES EXCEPT THE US ORBITAL AND TELEGLOBE SAID THEY HOPE TO NEGOTIATE A DEFINITIVE AGREEMENT BY JUNE 10 SUBJECT TO BOARD APPROVALS 9304210032 930421 EXECUTIVE PAY A SPECIAL REPORT TALKING ABOUT PAY A SHAREHOLDER ACTIVIST AND A CORPORATE LEADER DEBATE RECENT TRENDS IN EXECUTIVE COMPENSATION SHAREHOLDERS ARE RESTLESS MANY RESENT SOARING EXECUTIVE PAY ESPECIALLY AT UNDERPERFORMING COMPANIES THEY WANT TO KNOW MORE ABOUT EXECUTIVEPAY DECISIONS AND THEY WANT TO PLAY A BIGGER ROLE IN THOSE DECISIONS BOWING TO SUCH PRESSURE THE SECURITIES AND EXCHANGE COMMISSION RECENTLY REQUIRED SHAREHOLDER PROXY STATEMENTS TO TELL MUCH MORE ABOUT HOW AND HOW MUCH CORPORATIONS REWARD THEIR TOP EXECUTIVES SEC OFFICIALS BELIEVE THAT THE INVESTING PUBLIC WILL LEARN ENOUGH ABOUT EXECUTIVE PAY TO CONTROL EXCESSES BUT ARE THE NEW PAYDISCLOSURE RULES STARTING TO INFLUENCE EXECUTIVE COMPENSATION SHOULD SHAREHOLDERS HAVE A GREATER VOICE IN BOARDS' HANDLING OF THIS TOUCHY ISSUE AND HOW CAN BUSINESSES LINK EXECUTIVES' PAY MORE CLOSELY TO STOCK PERFORMANCE A SHAREHOLDER ACTIVIST AND A TOP CORPORATE LEADER BROUGHT TOGETHER BY WALL STREET JOURNAL STAFF REPORTER JOANN S LUBLIN TOOK STRIKINGLY DIFFERENT VIEWS ON SOME OF THESE CONTROVERSIAL SUBJECTS AND AGREED ABOUT CERTAIN OTHERS THE ACTIVIST IS RALPH WHITWORTH PRESIDENT OF THE 65000MEMBER UNITED SHAREHOLDERS ASSOCIATION IN WASHINGTON DC AMONG OTHER THINGS THE SHAREHOLDERRIGHTS GROUP HAS INTRODUCED NUMEROUS PROXY RESOLUTIONS TO KILL LUCRATIVE GOLDEN PARACHUTE PLANS THAT LACK SHAREHOLDER APPROVAL SEVERAL BIG COMPANIES FACE SUCH RESOLUTIONS AT ANNUAL MEETINGS THIS SPRING THE SENIOR EXECUTIVE IS ROBERT H MALOTT CHAIRMAN OF THE EXECUTIVE COMMITTEE AT FMC CORP A CHICAGO CHEMICALS AND MACHINERY CONCERN MR MALOTT ALSO SERVES ON THE BOARDS OF AMOCO CORP AND UNITED TECHNOLOGIES CORP IN OCTOBER 1991 HE RETIRED AS FMC'S CHIEF EXECUTIVE OFFICER HIS CASH COMPENSATION TOTALED 12 MILLION THAT YEAR EXCERPTS FROM THEIR DISCUSSION FOLLOW THE WALL STREET JOURNAL WHAT DO YOU THINK OF THESE SEC PROXY RULES ROBERT MALOTT MY IMPRESSION IS THAT THEY ARE A MOVE IN THE RIGHT DIRECTION I MUST ADMIT I WAS SKEPTICAL I'D ALSO ADD THAT I DON'T THINK WE'VE NECESSARILY HAD ENOUGH TIME TO REALLY APPRECIATE THE IMPACT CERTAINLY THE ATTEMPT TO STANDARDIZE THE KIND OF INFORMATION THAT IS COMMUNICATED TO SHAREHOLDERS IS VERY VALUABLE WHETHER OR NOT THEY SUCCEEDED IN DOING THAT I'M NOT QUITE SURE RALPH WHITWORTH THIS IS A MOVE IN THE RIGHT DIRECTION AND MAYBE I THINK IT'S EVEN A STRONGER MOVE IN THE RIGHT DIRECTION THAN BOB I'M SURE IT COULD USE IMPROVEMENTS AROUND THE EDGES YOU'VE MOVED AWAY FROM A NARRATIVE APPROACH TO DISCLOSING PAY AND MORE TOWARD A QUANTITATIVE TABULAR APPROACH SO IT'S MORE STRAIGHTFORWARD AND IT'S MORE CONDUCIVE TO COMPARISON I ALSO THINK THAT YOU'VE BROUGHT SOME MORE ACCOUNTABILITY INTO THE PAYSETTING PROCESS BY REQUIRING THE STATEMENT FROM THE BOARD COMPENSATION COMMITTEE GIVING THEIR REASONS FOR SETTING THE PAY THE PERFORMANCE CHART ALSO IS A VERY IMPORTANT ASPECT OF THE DISCLOSURE WSJ SOME PEOPLE ARGUE THAT THIS PERFORMANCE GRAPH SHOULD HAVE ANOTHER MEASUREMENT THE PERFORMANCE GRAPH MUST SHOW WHAT HAPPENED TO YOUR TOTAL RETURN TO SHAREHOLDERS AS MEASURED AGAINST A BROAD MARKET INDEX AND AGAINST AN INDEX OF YOUR PEERS SOME SAY THE GRAPH ALSO SHOULD SHOW WHAT HAPPENED TO CHIEF EXECUTIVES' COMPENSATION OVER THE SAME TIME PERIOD SO INVESTORS DON'T HAVE TO FLIP BACK AND FORTH BETWEEN IT AND OTHER CHARTS SHOULD A CHIEF EXECUTIVE'S COMPENSATION BE TRACKED AGAINST ALL THESE OTHER MEASURES MR MALOTT I THINK IF YOU WORKED AT IT LONG ENOUGH WE PROBABLY COULD GET SO MANY FOOTNOTES AND SO MANY SEC REPORTING REQUIREMENTS FOR OUR PROXY STATEMENT THAT WE COULD LOSE TRACK OF WHAT WE'RE DOING MR WHITWORTH SOME PEOPLE SAY GEE YOU'VE GOT ALL THESE CHARTS AND TABLES AND GRAPHS AND STATEMENTS ISN'T THIS EVEN MORE COMPLICATED THAN BEFORE THERE REALLY IS A BEAUTIFUL SIMPLICITY TO THIS DISCLOSURE IT SHOULD BE USED IN THREE PARTS THE CENTERPIECE OF THE DISCLOSURE IS THE SUMMARY TABLE WHICH IS ON ONE PAGE IT GIVES THE THREEYEAR HISTORY OF PAY IN ALL THE MAJOR CATEGORIES THEN THERE'S THE COMPENSATION COMMITTEE'S STATEMENT AND FINALLY THERE'S THE PERFORMANCE CHART BY LOOKING AT THOSE THREE SECTIONS AND LITERALLY THAT CAN BE AS FEW AS THREE PAGES MOST SHAREHOLDERS DON'T HAVE TO LOOK ANY FURTHER A QUICK LOOK AT THOSE THREE SPOTS WILL GIVE THEM A GOOD SENSE OF WHETHER THERE'S CONSISTENCY AND WHETHER THE THING MAKES SENSE AS FAR AS THEIR INTERESTS ARE CONCERNED YOU'RE LOOKING FOR A GENERAL SENSE OF WHAT THE COMPANY'S PAY POLICIES ARE AND WHETHER THOSE STATED POLICIES ARE CONSISTENT WITH THEIR PRACTICES I THINK THERE'S PLENTY OF INFORMATION THERE FOR SHAREHOLDERS OVER TIME TO LEARN THAT ABOUT ANY COMPANY IN CORPORATE AMERICA NOW WSJ ARE COMPANIES DEALING WITH THEIR DECISIONMAKING IN A DIFFERENT WAY BECAUSE OF THESE PAYDISCLOSURE RULES BOB ON THE BOARDS THAT YOU SIT ON HAS THE NEED FOR THIS COMPENSATION COMMITTEE REPORT WHICH ALL MEMBERS MUST SIGN CHANGED EITHER THE BOARD'S OR THE COMMITTEE'S THINKING ABOUT HOW THEY COMPENSATE THEIR EXECUTIVES MR MALOTT I DON'T THINK AS A DIRECTOR BEING ASKED TO APPROVE WHAT THE COMPENSATION COMMITTEE HAS WRITTEN HAS HAD ANY IMPACT I DON'T SEE WHY IT SHOULD BECAUSE I WOULD THINK THAT MOST DIRECTORS ARE INFORMED ABOUT WHAT IS COMMUNICATED TO SHAREHOLDERS I DIDN'T LEARN ANYTHING NEW FROM READING WHAT THE COMPENSATION COMMITTEES WROTE ABOUT THE BASIS ON WHICH INCENTIVE COMPENSATION IS GRANTED TO THE OFFICERS OF A PARTICULAR COMPANY WSJ HOW ABOUT FROM THE SHAREHOLDERS' PERSPECTIVE NOW THAT COMPENSATION COMMITTEES MUST WRITE THESE REPORTS IS THIS CAUSING ANY COMPANIES TO RETHINK THEIR EXECUTIVECOMPENSATION PRACTICES MR WHITWORTH ABSOLUTELY THIS IS THE PLACE WHERE WE DO DISAGREE SHARPLY THE NEW DISCLOSURE IN GENERAL AND THAT COMMITTEE STATEMENT IN PARTICULAR IS HAVING AN IMPACT ON THE THINKING OF COMPENSATION COMMITTEES AND BOARDS IN GENERAL ONE OF THE UNDERLYING PREMISES OF THIS DISCLOSURE IS THAT PROCESS DRIVES THE SUBSTANCE YOU KNOW AT THE TIME YOU'RE MAKING DECISIONS THAT THIS IS SOMETHING THAT'S GOING TO HAVE TO BE DISCLOSED I DON'T THINK THERE'S ANY WAY YOU CAN SAY YOU'RE NOT GOING TO BE THINKING ABOUT HOW THIS IS GOING TO LOOK OR HOW THIS IS GOING TO APPEAR AND HOW THIS FITS INTO THE PROXY I THINK THAT EVERY COMPENSATION COMMITTEE IN AMERICA FACTORS THAT INTO THEIR DECISIONS WHAT IS GOING TO PASS THE SMELL TEST OUT THERE WHAT ARE SOME OF THE SCREENS THAT THE INSTITUTIONAL SHAREHOLDERS HAVE TO THE EXTENT THAT THERE'S MORE DISCLOSURE NOW AND THAT DIRECTORS' FEET ARE BEING HELD TO THE FIRE BY A SPECIFIC STATEMENT THAT THEY AUTHOR I THINK IT IS HAVING AN IMPACT ON THEM WSJ WHAT IS THE IMPACT ARE PEOPLE DROPPING PORTIONS OF THEIR EXECUTIVEPAY PLANS MR WHITWORTH WE'RE FINDING THAT SOME OF THE MORE COMPLEX ASPECTS OF EXECUTIVE PAY ARE BEING DROPPED LOOK AT IBM'S PROXY THIS YEAR FOR A GOOD EXAMPLE BOARDS ARE GOING TO A MORE CLEARCUT TYPE OF PACKAGE THAT IS EASY TO EXPLAIN AND EASY TO UNDERSTAND IN THE NEW DISCLOSURE FORMAT THAT'S HAPPENING AND IT'S GOING TO HAPPEN MR MALOTT WELL I TEND TO DISAGREE WITH THAT I THINK A COMPANY IS GOING TO DEVELOP AN INCENTIVE COMPENSATION PLAN WHICH THEY THINK IS APPROPRIATE TO THE CHALLENGE THAT THEY FACE AND I DON'T THINK THEY'RE GOING TO DUCK FROM COMPLEXITY NO COMPANY THAT I'M ASSOCIATED WITH IS GOING TO CHANGE THEIR COMPENSATION SYSTEM IF THEY THINK IT'S A GOOD ONE IN ACCOMPLISHING WHAT THEY WANT TO ACCOMPLISH JUST BASED ON WHAT HAS TO BE REPORTED WSJ WITH SHAREHOLDERS NOW LEARNING MORE ABOUT HOW EXECUTIVEPAY DECISIONS ARE MADE SHOULD THEY ALSO PLAY A BIGGER ROLE IN INFLUENCING THESE DECISIONS SOME INSTITUTIONAL INVESTORS ARGUE THAT SHAREHOLDERS SHOULD GET TO VOTE ON A COMPANY'S SELECTION OF COMPENSATION CONSULTANTS WHAT DO YOU THINK MR MALOTT I THINK IT'S CRAZIER THAN A HOOT OWL I DO NOT THINK THAT SHAREHOLDERS HAVE A CONSTRUCTIVE ROLE TO PLAY IN COMPENSATION OR IN SELECTING CONSULTANTS I STRUGGLE TO SEE HOW INSTITUTIONAL INVESTORS CAN PLAY A CONSTRUCTIVE ROLE IN WHAT BASICALLY IN MY JUDGMENT IS A MANAGEMENT DECISION I SAY THAT NOT BECAUSE I THINK THERE IS A PREROGATIVE THAT NEEDS TO BE PROTECTED MR WHITWORTH I AGREE THAT THE SHAREHOLDERS DON'T HAVE A ROLE IN MICROMANAGING COMPENSATION DECISIONS OR EVEN IN SECOND GUESSING PRECISE LEVELS OF COMPENSATION BUT THEY DO HAVE A RIGHT TO DEMAND COMPETITIVE COMPENSATION AS FAR AS WHAT THEY'RE PAYING AND TO THE EXTENT THAT THERE'S EXTRAORDINARY COMPENSATION PAID THAT IT'S ONLY FOR EXTRAORDINARY PERFORMANCE SHAREHOLDERS SHOULDN'T VOTE ON A COMPENSATION CONSULTANT BUT IF ONE IS HIRED THE COMPENSATION CONSULTANT SHOULD ANSWER TO THE COMPENSATION COMMITTEE THE CHAIRMAN OF THE COMMITTEE SHOULD BE RESPONSIBLE FOR CHOOSING THE CONSULTANT AND THE CONSULTANT SHOULD ANSWER TO THAT CHAIRMAN NOW IF THAT MEANS THAT THIS BOARD MEMBER HAS TO GET MORE INVOLVED AND SPEND MORE TIME ON THAT TASK THEN DARN WELL THEY SHOULD IN TOO MANY COMPANIES IN CORPORATE AMERICA THE MANAGEMENT IS PICKING THE CONSULTANT AND THEY'RE TAKING THE PACKAGE TO THE COMPENSATION COMMITTEE BY AND LARGE AS A FAIT ACCOMPLI THAT IS WRONG AND THAT SHOULD CHANGE MR MALOTT I DON'T THINK THAT A COMPANY OR A COMMITTEE SHOULD BE FORCED TO HAVE A CONSULTANT A CONSCIENTIOUS CHAIRMAN OF A BOARD WILL HAVE A BOARD AND A COMPENSATION COMMITTEE COMMITTED TO THEIR RESPONSIBILITIES AND INDEPENDENT OF THE COMPANY TO THE POINT THAT THEY DO A GOOD JOB WSJ WHO HIRED THE COMPENSATION CONSULTANT WHEN YOU WERE CHIEF EXECUTIVE AT FMC THE MANAGEMENT OR THE BOARD MR MALOTT I THINK WE PROBABLY HIRED THEM BUT I'LL TELL YOU WE DIDN'T FORCE ANYTHING DOWN OUR COMPENSATION COMMITTEE I STILL THINK THERE'S AN AWFUL LOT OF FAITH THAT YOU HAVE TO HAVE IN THE COMMITMENT AND THE OBJECTIVITY OF THE BOARD MEMBERS THAT YOU HAVE MR WHITWORTH WE DO HAVE TO HAVE A LOT OF FAITH IN THE CONSCIENTIOUSNESS OF DIRECTORS BUT WE HAVE TO REMEMBER SOMETHING WHEN YOU'RE TALKING ABOUT EXECUTIVE COMPENSATION YOU'RE TALKING ABOUT THESE EXECUTIVES' OWN PERSONAL WEALTH THAT'S THE SINGLE ISSUE ON WHICH THEY HAVE THE GREATEST CONFLICT OF INTEREST REGARDLESS OF HOW CONSCIENTIOUS SOMEONE IS THERE'S SOMETHING PULLING YOU IN A VERY DISTINCT DIRECTION WHEN YOU'RE TALKING ABOUT YOUR OWN PAY WE HAVE TO HAVE SAFEGUARDS TO MAKE SURE THAT DECISIONS ARE MADE IN THE MOST OBJECTIVE WAY POSSIBLE AND THAT THE RIGHT INTERESTS ARE CONSIDERED AND THOSE ARE THE SHAREHOLDERS' INTERESTS THE REASON THE QUESTION OF WHO HIRED COMPENSATION CONSULTANTS IS IMPORTANT IS BECAUSE WE ALL KNOW THAT YOU DANCE WITH WHO BROUGHT YOU TO THE DANCE THESE COMPENSATION CONSULTANTS ARE BASICALLY LIKE GOOD BIRD DOGS THEY HUNT WITH WHOEVER'S GOT A GUN I DON'T KNOW OF ONE COMPENSATION CONSULTANT THAT HAS EVER GONE IN AND RECOMMENDED A DECREASE IN EXECUTIVE PAY MR MALOTT BUT THAT'S A SIMPLISTIC EXPECTATION TO HAVE OF A CONSULTANT THE CONSULTANTS DON'T USUALLY COME IN AND CONSULT ON AN INDIVIDUAL'S PAY THEY COME IN AND CONSULT ON SYSTEMS AND GENERAL APPROACHES THEY COME IN AND ADDRESS THE ISSUE OF WHAT KIND OF A PAY SYSTEM IS GOING TO BEST INCENT YOUR MANAGEMENT TO DO WHAT YOU THINK THIS COMPANY REQUIRES WSJ SOME PEOPLE ARGUE THAT SHAREHOLDERS OUGHT TO HAVE SOME SAY AS TO WHETHER EXECUTIVEPAY PROGRAMS ARE CHANGED OR NOT FOR INSTANCE WISCONSIN'S PUBLIC PENSION FUND IS TRYING TO UNSEAT THE FOURMEMBER COMPENSATION COMMITTEE AT PARAMOUNT COMMUNICATIONS INC BECAUSE OF THE COMPANY'S HIGH EXECUTIVE COMPENSATION AND LAGGING STOCK PERFORMANCE THE PENSION FUND'S EFFORT ULTIMATELY DIDN'T SUCCEED WHAT DO YOU THINK OF THAT KIND OF INVOLVEMENT OF SHAREHOLDERS IN PAY DECISIONS MR MALOTT I THINK A SHAREHOLDER ALWAYS HAS THAT RIGHT THEY CAN DO IT FOR COMPENSATION REASONS OR FOR LACK OF PERFORMANCE THERE ARE ALL KINDS OF REASONS SHAREHOLDERS HAVE A RIGHT TO GET UPSET WITH MANAGEMENT AND BOOT THEM OUT SHOULD SHAREHOLDERS GET IN THERE AND START SCREWING AROUND WITH COMPENSATION PLANS I DISAGREE WITH THAT MR WHITWORTH THE GENIUS OF WHAT THE WISCONSIN PENSION FUND IS DOING THOUGH IS IN THEIR APPROACH THEY ARE FOCUSING ON WHERE SHAREHOLDERS SHOULD FOCUS ON THE BOARD WSJ BUT AS A RULE IF SHAREHOLDERS WANT TO INFLUENCE COMPENSATION DECISIONMAKING WHAT ROLE SHOULD THEY PLAY MR MALOTT ZERO AS A RULE MR WHITWORTH I WANT TO MAKE A DISTINCTION HERE DO I THINK IT WOULD BE WISE FOR THE BOARD TO GET THE SHAREHOLDERS' VIEW ABOUT AN EXTRAORDINARY PROGRAM LIKE A LARGE GOLDEN PARACHUTE PROGRAM YOU BET I THINK IT'S SOMETHING THAT THE SHAREHOLDERS OUGHT TO HAVE A CHANCE TO SAY SOMETHING ABOUT BECUSE THOSE ARE CONTROVERSIAL AND THEY COST A LOT OF MONEY AS FAR AS WHAT ROLE THEY SHOULD HAVE IN THE COMPANY'S DAYTODAY COMPENSATION DECISIONMAKING I THINK THEY SHOULD HAVE THE ROLE THAT THE WISCONSIN FUND IS PLAYING RIGHT NOW THEIR INFLUENCE SHOULD BE AT THE BOARD THEY SHOULD LOOK AT THE DISCLOSURES AND IF THEY'RE DISSATISFIED THEY SHOULD GO TO THE COMPENSATION COMMITTEE FOR THE LAST SEVERAL YEARS SHAREHOLDER ACTIVISTS HAVE BEEN DOING THE BOARD'S DIRTY WORK BY BEATING UP ON THE MANAGERS THAT'S NOT THEIR ROLE REALLY I'VE BEEN A PART OF THAT TO SOME DEGREE TOO ULTIMATELY IT'S THE BOARD'S RESPONSIBILITY TO DO THOSE THINGS MR MALOTT WE'VE GOT A GOLDEN PARACHUTE IN PLACE AND I THINK WE ALLOWED OUR SHAREHOLDERS TO VOTE ON IT BUT WE COUPLED IT WITH PART OF OUR RECAPITALIZATION SO IF THEY WANTED THEIR 80 THEY GAVE THE PARACHUTE TO US WHICH I THOUGHT WAS QUITE SMART BUT I THINK GOLDEN PARACHUTES ARE JUSTIFIED I MEAN I SWEATED OUT THE '80S IN AN ENVIRONMENT WHERE I'LL TELL YOU I WAS VERY CONCERNED ABOUT BEING TAKEN OVER I DON'T THINK A TAKEOVER WOULD HAVE BEEN IN THE BEST INTEREST OF SHAREHOLDERS THAT GOLDEN PARACHUTE WAS A PERFECTLY VALID DEFENSE THAT WE HAD WSJ BUT SHOULD SHAREHOLDERS GET TO DECIDE THE MAKEUP OF BOARD COMPENSATION COMMITTEES SHAREHOLDER ACTIVISTS HAVE SUBMITTED PROXY RESOLUTIONS PROPOSING THAT COMPENSATION COMMITTEES EXCLUDE INSIDERS AND ANYONE WHO HAS EVER HAD ANY KIND OF BUSINESS RELATIONSHIP TO THE COMPANY WHETHER IT'S THE RETIRED CHIEF EXECUTIVE A LAWYER A BANKER OR A CONSULTANT IS THIS A GOOD IDEA MR MALOTT I WOULDN'T BE WORRIED ABOUT THAT LIMITATION AT ALL BUT I THINK YOU CAN HAVE A COMPENSATION COMMITTEE THAT HAS INSIDERS THE COMMITTEE CAN'T FUNCTION VERY EFFECTIVELY WITHOUT WORKING VERY CLOSELY WITH MANAGEMENT I ALSO WOULDN'T OBJECT TO SUCH RESOLUTIONS BEING DEFEATED YOU KNOW I ALWAYS WAS ON OUR COMPENSATION COMMITTEE AT FMC MR WHITWORTH WE FEEL STRONGLY THAT NOMINATING COMMITTEES AND COMPENSATION COMMITTEES SHOULD BE MADE UP EXCLUSIVELY OF OUTSIDE DIRECTORS YOU WANT TO BRING AS MUCH INDEPENDENCE AS POSSIBLE TO THOSE DECISIONS BECAUSE THOSE ARE DECISIONS WHERE MANAGEMENTS AND EVEN INCUMBENT DIRECTORS HAVE A CONFLICT WSJ THE WHOLE DEBATE IN RECENT YEARS HAS BEEN WHETHER CHIEF EXECUTIVES IN THIS COUNTRY ARE PAID TOO MUCH OR PAID WITH THE WRONG APPROACH HAS THIS ATTENTION CORRECTED THE WORST OF THE ABUSES MR WHITWORTH THERE'S A TREMENDOUS CHANGE THAT WE'RE SEEING BUT IT'S GOING TO BE A FEW YEARS BEFORE WE FLUSH OUT ALL THE ABUSIVE PRACTICES YOU'VE GOT STOCKOPTION PROGRAMS WHERE EITHER THE GRANTS ARE TOO BIG OR THE TERMS ARE TOO SHORT YOU HAVE BONUS PROGRAMS WHERE YOU WIN NO MATTER WHAT THE PERFORMANCE IS THEY CALL IT A BONUS BUT IN FACT IT'S BASE PAY THOSE KINDS OF ABUSES ARE STILL OUT THERE IF YOU COME BACK IN 1996 OR 1997 YOU'RE GOING TO SEE A COMPLETELY DIFFERENT LOOK AS FAR AS HOW OUR EXECUTIVES ARE COMPENSATED THE CHIEF EXECUTIVE IS GOING TO BE COMPENSATED WITH A NICE HEALTHY BASE PAY AND THE REST OF IT IS GOING TO BE TIED TO RETURNS TO SHAREHOLDERS BECAUSE THAT'S WHAT SHAREHOLDERS ARE GOING TO INSIST ON OVER TIME MR MALOTT I THINK IT HAS BEEN VERY HEALTHY TO TURN UP THE WATTAGE OF THE KLIEG LIGHTS THE ATTENTION IS HAVING A HEALTHY IMPACT ON THE CONSCIENTIOUSNESS OF BOARD MEMBERS IN TERMS OF HOW THEY ADDRESS COMPENSATION ISSUES BUT THE COMPENSATION PACKAGE OF 1997 WILL I GUARANTEE YOU CONTINUE TO HAVE ANNUAL BONUSES AS PART OF IT I WOULDN'T RUN A COMPANY WHERE I DIDN'T HAVE THE RIGHT TO OFFER ANNUAL BONUSES MR WHITWORTH THE WAY THE CHIEF EXECUTIVE OF EVERY PUBLIC COMPANY SHOULD BE PAID IS THAT THEY SHOULD HAVE A VERY GOOD COMPETITIVE BASE SALARY AND THEN ANY PAY BEYOND THAT SHOULD BE CONNECTED DIRECTLY TO THE STOCK PRICE TO THE RETURN TO SHAREHOLDERS AND THAT'S IT WSJ BUT THEN YOU WOULD HAVE NO ANNUAL BONUS MR WHITWORTH THAT'S RIGHT FORGET THE ANNUAL BONUS CHIEF EXECUTIVES HAVE TO STRUGGLE ALONG ON THE MILLION DOLLARS IN BASE PAY THAT THEY AVERAGE WE HOPE THEY DO GET RICH BY THE WAY WE WANT THEM TO BE MULTIMILLIONAIRES BUT THEY'VE GOT TO MAKE THAT MONEY RIGHT ALONGSIDE THE SHAREHOLDERS IN THE FORM OF EITHER STOCK OPTIONS OR SOME PLAN THAT'S LINKED TO THE STOCK PRICE ALL YOU HAVE TO DO IS LOOK AT THE ORIGINAL PROSPECTUS OF THE COMPANY AND THAT'S WHAT THE COMPANY WAS FORMED FOR IT SAYS RIGHT THERE PLEASE GIVE US YOUR MONEY WE'LL MAKE YOU RICH THE ONLY WAY THE SHAREHOLDERS CAN GET RICH IS BY APPRECIATION IN THE STOCK PRICE OR BY DIVIDENDS AND SO THAT'S THE ONLY WAY THE TOP OFFICERS OF THE COMPANY SHOULD BE ABLE TO GET RICH THEN YOU'VE GOT THE INTERESTS ALIGNED MR MALOTT I DISAGREE WITH THAT IN TRYING TO RUN A COMPANY I WILL TELL YOU IT IS VERY VERY HELPFUL FOR ME TO PAY SOMEONE A FAIR SALARY AND TO HAVE ANNUAL PERFORMANCE EXPECTATIONS AND TARGETS AGAINST WHICH I'M WILLING TO PAY EXTRA CASH COMPENSATION IN THE SHORT TERM FOR PARTS OF YOUR COMPANY OR FOR INDIVIDUALS YOU CAN CREATE SPECIFIC TARGETS OF EXPECTATION AND EMPHASIS THAT YOU WANT TO MAKE IT MIGHT BE WORKING CAPITAL ONE YEAR IT MIGHT BE MARKET PENETRATION IN ANOTHER PART OF THE COMPANY IN ANOTHER YEAR THERE ARE ALL KINDS OF THINGS THAT I THINK CAN BE ACCOMPLISHED IN THE SHORT TERM AND YOU WANT TO HAVE SOME INCENTIVE TIED TO THAT NOW IN THE LONG RUN I COMPLETELY AGREE I THINK THERE OUGHT TO BE LONGRUN CAPITALAPPRECIATION PROGRAMS WHERE THE RETURN TO THE MANAGEMENT IS PRECISELY THE RETURN TO SHAREHOLDERS BUT IN THE SHORTTERM YOU NEED TO HAVE IN ADDITION TO A STRAIGHT FLAT SALARY SOME ABILITY TO INCENT WHAT YOU WANT TO GET DONE WSJ WHAT IF YOU DON'T ARE YOU GOING TO HAVE TROUBLE HOLDING ON TO PEOPLE ARE YOU GOING TO HAVE TROUBLE MAINTAINING MORALE MR MALOTT I WOULD GO FIND SOME OTHER COMPANY I WOULD NOT WORK IN AN ENVIRONMENT EITHER AS A CHIEF EXECUTIVE OR AS AN AMBITIOUS EMPLOYEE WHERE I DIDN'T HAVE SOME ABILITY TO INFLUENCE MY ANNUAL COMPENSATION BASED ON WELLDEFINED OBJECTIVES MR WHITWORTH YOU REALLY END UP WITH A DILEMMA AS A SHAREHOLDER BECAUSE YOU HAVE MANAGEMENTS THAT ARE CONSTANTLY TALKING ABOUT THE FACT THAT THEY'RE LONGTERMERS BUT THEN IF YOU LOOK AT THE COMPENSATION PLANS IN A LARGE PERCENTAGE OF OUR COMPANIES THEY'RE BASED ON THE SHORTEST OF SHORTTERM PROGRAMS ANNUAL SALARY AND ANNUAL BONUS AND OFTEN THE ABILITY TO DOUBLE YOUR SALARY ON AN ANNUAL BONUS I'M SAYING LET'S WAIT FOR THE PAYOFF AND LET'S HAVE EVERYBODY GET PAID OFF AT THE SAME TIME GIVE THEM A GOOD COMPETITIVE BASE SALARY DON'T GET ME WRONG THEN HAVE CONFIDENCE IN YOUR MANAGERS THAT THEY UNDERSTAND THE BUSINESS AND THEY KNOW WHAT THEY NEED TO DO TO GET FROM HERE TO THERE IN THE LONG TERM AND THAT THEIR SHORTTERM STRATEGIES ARE GOING TO LEAD TO THOSE RESULTS MAKE THEM BET THEIR EXTRAORDINARY PAY ON THE FACT THAT THEIR SHORTTERM PLANS STRATEGIES AND TACTICS ARE GOING TO RESULT IN LONGTERM RETURNS THAT'S WHERE WE'VE HAD THE INCONGRUITY THAT LED TO THIS WHOLE DEBATE ABOUT EXECUTIVE COMPENSATION TO BEGIN WITH YOU SAW COMPANIES PAYING HUGE BONUSES SHORTTERM THAT WERE TOTALLY INCONSISTENT WITH THEIR PROFITS AND THEIR STOCKPRICE RETURNS MR MALOTT BUT IN THE SHORT RUN THERE ARE GOING TO BE SITUATIONS AS A LONGTERM SHAREHOLDER WHERE YOU ARE DELIGHTED THAT HAPPENED TO BE WHAT TOOK PLACE WSJ WHAT IF YOU ELIMINATE THE ANNUAL BONUS OF A COMPANY'S TOP 25 OFFICERS MR MALOTT I DON'T THINK THAT'S APPROPRIATE I CAN TAKE THE TOP EIGHT OR 10 OFFICERS IN MOST COMPANIES I KNOW AND DIFFERENTIATE WHAT I WANT THEM TO DO IN A SHORTTIME FRAME I WANT THEM TO CLEARLY UNDERSTAND THAT'S WHAT THEY SHOULD BE ACCOMPLISHING IN ONE YEAR I'VE MADE THE JUDGMENT AS A CHIEF EXECUTIVE THAT ACCOMPLISHING THAT WOULD HAVE A MAJOR LONGRANGE IMPACT ON THE HEALTH OF THE COMPANY AND THE RETURN TO SHAREHOLDERS THERE ARE DIFFERENT THINGS THAT I WANT TO HAPPEN BUT THEY'RE NOT GOING TO BE REFLECTED IN THE PRICE OF THE STOCK IN ONE YEAR THERE'S ANOTHER THING WE OVERLOOKED COMPLETELY I HAVE BEEN ASSOCIATED WITH COMPANIES WHERE IF YOUR COMPENSATION TO YOUR TOP MANAGERS WAS GOING TO BE DEPENDENT ON STRAIGHT PROFITABILITY OR STOCKMARKET PERFORMANCE THOSE COMPANIES WOULD HAVE FAILED BECAUSE THEY WERE TURNAROUND SITUATIONS SOME CAN BE ACCOMPLISHED IN SIX MONTHS SOME CAN BE ACCOMPLISHED IN THREE OR FOUR YEARS BUT YOU CANNOT TIE THE COMPENSATION OF A GROUP OF PEOPLE WHO MIGHT BE EXTREMELY CAPABLE OF ADDRESSING SITUATIONS LIKE THAT WHERE THE RETURN AS REFLECTED IN STOCK VALUE MIGHT BE A LONGER TERM THAN ONE YEAR MR WHITWORTH I'M TALKING ABOUT THE VERY TOP PEOPLE AND THE CHIEF EXECUTIVE IN PARTICULAR THE CHIEF EXECUTIVE SHOULD TELL THE SHAREHOLDERS AT THE ANNUAL MEETING EVERY YEAR THAT I'M GOING TO TAKE THIS AS MY BASE PAY AND I THINK I DESERVE THAT IF YOU LOOK COMPETITIVELY ACROSS THE BOARD AND I'M NOT GOING TO MAKE ANOTHER DIME UNLESS YOU MAKE MONEY IT MAY NOT BE FOR 10 YEARS OR FIVE YEARS BUT I'M WILLING TO BET ON IT AND I HOPE YOU WILL TOO AND YOU BETTER BE PATIENT I'LL TELL YOU WHAT ELSE THESE BONUSES DO THEY'RE A TREMENDOUS MORALE BUSTER DOWN IN THE ORGANIZATION THE RANK AND FILE EMPLOYEES ARE SEEING SPECIAL DEALS FOR SPECIAL PEOPLE AND IT DOESN'T LOOK ANYTHING LIKE A TEAM PARTICULARLY WHEN YOU HAVE BONUSES THAT ARE PAID BASED ON OPERATIONAL STRATEGIES OR WHATEVER AND THEY'RE PAID IN YEARS WHEN PROFITS ARE DOWN WHEN THE STOCK PRICE IS DOWN WE'VE SEEN THAT IN THE PAST FEW YEARS I THINK THAT'S JUST FEEDING THESE POPULIST WINDS THAT ARE SWEEPING THIS COUNTRY RIGHT NOW PEOPLE ARE SAYING LOOK WE'RE FED UP WITH SPECIAL DEALS FOR SPECIAL PEOPLE THAT'S A FACT OF LIFE AND THAT HAS TO GO INTO THE COMPENSATION DECISIONMAKING BECAUSE IF YOU BUST MORALE IN A BIG COMPANY THAT'S LABOR INTENSIVE THAT CAN BE AS COSTLY AS ANYTHING MR MALOTT OBVIOUSLY IF YOU BUST MORALE IN A COMPANY IT'S A DISASTER BUT I THINK THE CONCEPT OF NOT BEING ABLE TO CREATE DIFFERENTIAL OBJECTIVES FOR KEY PEOPLE AND COMPENSATE THEM ON A PERIOD OF TIME AND IN MANY CASES IT IS MEASURABLE WITHIN A YEAR MEANS LOSING A TOOL OF MANAGEMENT I WOULD BE LOATH TO ACCEPT THAT I DON'T THINK THE BONUSES HAVE BEEN EXTRAORDINARY THE EXTRAORDINARY PART OF TOTAL COMPENSATION HAS BEEN BASICALLY STOCK PLANS INCENTIVE COMPENSATION AS IT PERTAINS TO STOCK AWARDS OR STOCKCOMPENSATION PLANS DESERVES MORE ATTENTION IN MORE COMPANIES THAN IT'S BEEN GETTING I FOR ONE DON'T THINK THERE'S ENOUGH FOCUS ON THE APPROPRIATENESS OF THE STOCK AWARDS IN THE FIRST PLACE ONCE THAT IS ADDRESSED THEN YOU WANT THE CHIEF EXECUTIVE TO GET DAMN RICH BECAUSE HIS REWARD IS GOING TO BE SHARED DIRECTLY BY SHAREHOLDERS 9304210031 930421 TECHNOLOGY BRIEF QUADRA LOGIC TECHNOLOGIES INC LIGHTACTIVATED TREATMENT FOR CANCER WINS APPROVAL QUADRA LOGIC TECHNOLOGIES INC TORONTO RECEIVED ITS FIRST REGULATORY APPROVAL TO MARKET PHOTOFRIN A LIGHTACTIVATED CANCER TREATMENT CANADA'S HEALTH PROTECTION BRANCH CLEARED PHOTOFRIN AS A TREATMENT FOR RECURRENT SUPERFICIAL PAPILLARY BLADDER CANCER AND IS CONSIDERING THE COMPANY'S SUBMISSION FOR OTHER CANCER APPLICATIONS PHOTOFRIN ACTIVATED BY LIGHT FROM A MEDICAL LASER PRODUCES A FORM OF OXYGEN THAT ACTS TO DESTROY TUMORS QUADRA LOGIC SAID TRIALS SHOWED THAT THE TREATMENT PREVENTS OR DELAYS RECURRENCE OF BLADDER CANCER THE COMPANY SAID THE TREATMENT IS THE FIRST PRODUCT FOR WHICH THE COMPANY HAS RECEIVED MARKETING APPROVAL QUADRA LOGIC'S PRESIDENT AND CHIEF EXECUTIVE WILLIAM FORAN SAID THAT WHILE CANADA REPRESENTS LESS THAN 5 OF THE COMPANY'S TOTAL POTENTIAL MARKET THE APPROVAL WILL START THE REVENUE STREAM FINALLY AFTER 10 YEARS OF DEVELOPMENT QUADRA LOGIC IS ABOUT 12OWNED BY AMERICAN CYANAMID CO WHICH WILL MARKET THE TREATMENT AND RECEIVE TWOTHIRDS OF THE REVENUE QUADRA LOGIC WILL RECEIVE THE REMAINDER MR FORAN SAID QUADRA LOGIC HAS APPLIED IN EUROPE AND JAPAN FOR MARKETING APPROVAL OF PHOTOFRIN THE COMPANY WILL MAKE A SUBMISSION TO THE US FOOD AND DRUG ADMINISTRATION WITHIN A FEW MONTHS MR FORAN SAID 9304210030 930421 BUSINESS BRIEFS LA QUINTA MOTOR INNS INC PLANS TO SPEND 45 MILLION TO 50 MILLION OVER THE NEXT TWO YEARS ON IMPROVEMENTS TO THE ROUGHLY 200 MOTELS IT OWNS OR MANAGES IN ADDITION IT WILL LAUNCH AN AD CAMPAIGN TO PROMOTE ITS NEW IMAGE AND A NEW SLOGAN LEGG MASON INC COMPLETED THE ACQUISITION OF FAIRFIELD GROUP INC WHICH PROVIDES MUTUAL FUND ADVISORY AND OTHER SERVICES TO BANKS AND BANK TRUST DEPARTMENTS GOVERNMENT TECHNOLOGY SERVICES INC REACHED A RESALE AGEEMENT WITH APPLE COMPUTER INC TO SELL APPLE PRODUCTS TO THE FEDERAL GOVERNMENT MARKET NUCOR CORP WILL EXPAND BY 80 THE CAPACITY OF ITS SHEETSTEEL MILL IN CRAWFORDSVILLE IND SEAGRAM CO SOLD BRANDY MAKER JANNEAU FILS SA OF FRANCE TO FAA INVESTMENTS BV OF AMSTERDAM 9304210029 930421 FINANCING BUSINESS MITSUBISHI BANK LTD MITSUBISHI BANK LTD TOKYO MOODY'S INVESTORS SERVICE INC SAID IT LOWERED ITS SENIOR DEBT RATING ON THE BANCAL TRISTATE CORP UNIT TO SINGLEA3 FROM SINGLEA1 THE AGENCY ALSO DOWNGRADED ITS RATING ON BANCAL TRISTATE'S LEAD BANK BANK OF CALIFORNIA FOR LONGTERM DEPOSITS AND LONGTERM LETTERS OF CREDIT TO SINGLEA2 FROM SINGLEA1 BANK OF CALIFORNIA'S PRIME1 RATINGS FOR SHORTTERM DEPOSITS AND SHORTTERM LETTERS OF CREDIT WERE CONFIRMED MOODY'S SAID THE DOWNGRADES REFLECT THE BANK'S ASSET QUALITY PROBLEMS AS WELL AS THE STRENGTH OF SUPPORT FROM PARENT MITSUBISHI BANK IN LIGHT OF ITS OWN PROBLEMS THE LONGTERM RATING OF MITSUBISHI BANK HAS BEEN LOWERED BY MOODY'S TO DOUBLEA3 BECAUSE OF ASSET QUALITY DETERIORATION AND LONGTERM PROFITABILITY CONCERNS MOODY'S NOTED THAT BANK OF CALIFORNIA HAS BEEN PLAGUED BY LOSSES PRIMARILY BECAUSE OF ITS LARGE EXPOSURE TO THE CALIFORNIA COMMERCIAL REAL ESTATE MARKET A SPOKESMAN FOR BANK OF CALIFORNIA SAID THE COMPANY FEELS ITS RATING REMAINS STRONG EVEN AT THE NEW LEVEL 9304210027 930421 CLINTON EXPECTED TO TRIM THRIFT BAILOUT REQUEST WASHINGTON THE CLINTON ADMINISTRATION IS EXPECTED TO TRIM 3 BILLION FROM ITS REQUEST FOR THE FINAL CHUNK OF MONEY NEEDED FOR THE MASSIVE THRIFTINDUSTRY BAILOUT THE TREASURY DEPARTMENT PLANS TO ANNOUNCE TODAY THAT IT WILL ASK CONGRESS FOR 42 BILLION FOR THE RESOLUTION TRUST CORP THE AGENCY HANDLING THE SAVINGSANDLOAN CLEANUP AND FOR THE FEDERAL DEPOSIT INSURANCE CORP'S S&L INSURANCE FUND THE RTC'S POWER TO TAKE OVER INSOLVENT THRIFTS ENDS AFTER SEPT 30 OF THIS YEAR AND THE FDIC WILL THEN ASSUME THAT ROLE THE NEW REQUEST WHICH MAY SOFTEN SOME CONGRESSIONAL OPPOSITION TO MORE RTC FINANCING WILL REDUCE THE AMOUNT SOUGHT FOR THE RTC ITSELF TO 25 BILLION FROM 28 BILLION WHILE HOLDING THE FDIC AMOUNT TO 17 BILLION THE REDUCTION FOLLOWS CONFIRMATION BY THE CONGRESSIONAL GENERAL ACCOUNTING OFFICE IN ITS ANNUAL RTC AUDIT THAT THE RTC'S OWN FIGURES ON IMPROVED RECOVERY OF MONEY FROM THE SALES OF FAILED S&L ASSETS ARE VALID TREASURY AND RTC OFFICIALS SAID THE GAO AUDIT PROJECTS THAT THE RTC NOW WILL REALIZE ABOUT 5 BILLION MORE FROM THE SALE OF REMAINING S&L LAND MORTGAGE AND OTHER ASSETS THAN PREVIOUSLY ESTIMATED THE OFFICIALS SAID IMPROVED ECONOMIC CONDITIONS AND LOWER INTEREST RATES ARE BOOSTING THE RTC'S RECOVERIES BUT THE FUNDING REQUEST IS BEING TRIMMED BY ONLY 3 BILLION TO BE PRUDENT IN CASE THE ECONOMY DOESN'T IMPROVE AS MUCH AS PREDICTED A TREASURY OFFICIAL SAID 9304210026 930421 HOUSE BILL WOULD TIGHTEN REGULATION OF ADVISERS WASHINGTON THE HOUSE ENERGY AND COMMERCE COMMITTEE APPROVED LEGISLATION THAT WOULD TIGHTEN REGULATION OF FINANCIAL ADVISERS WHILE GIVING INVESTORS MORE INFORMATION ABOUT THEIR ADVISERS' FEES AND DISCIPLINARY HISTORY THE BILL ALSO WOULD ENABLE THE SECURITIES AND EXCHANGE COMMISSION TO HIRE MORE INSPECTORS BY RAISING THE REGISTRATION FEES PAID BY ADVISERS UNDER THE MEASURE ADVISERS WHO ARE COMPENSATED FOR RECOMMENDING SPECIFIC PRODUCTS WOULD BE REQUIRED TO DISCLOSE THAT INFORMATION IN ADDITION THE LEGISLATION WOULD REQUIRE ADVISERS TO DETERMINE WHETHER A PRODUCT IS SUITABLE FOR A PARTICULAR CUSTOMER'S INCOME AND FINANCIAL ACUMEN BEFORE RECOMMENDING IT THE BILL ALSO WOULD ESTABLISH A TOLLFREE NUMBER FOR INVESTORS TO CALL TO GET INFORMATION ABOUT ANY DISCIPLINARY ACTIONS AGAINST THEIR INVESTMENT ADVISERS LAWMAKERS SAID THE LEGISLATION IS NEEDED BECAUSE THE RAPID GROWTH OF INVESTMENT ADVISERS HAS LED TO SCAMS THE SENATE HAS ITS OWN VERSION OF A BILL AIMED AT BEEFING UP THE SEC'S SUPERVISION OF INVESTMENT ADVISERS BUT REP EDWARD MARKEY D MASS CHAIRMAN OF THE HOUSE TELECOMMUNICATIONS AND FINANCE SUBCOMMITTEE SAID THE HOUSE MEASURE PROVIDES MORE COPS ON THE BEAT AND PROVIDES BETTER PROTECTION OF INVESTORS THAN THE SENATE BILL 9304210025 930421 WHAT'S NEWS BUSINESS AND FINANCE SENATE DEMOCRATIC LEADERS APPEARED TO BE MOVING TOWARD ABANDONING CLINTON'S ECONOMIC STIMULUS BILL IN FAVOR OF A STRIPPEDDOWN MEASURE THAT WOULD FUND ONLY UNEMPLOYMENT BENEFITS FOR THE LONGTERM JOBLESS BUT THE DEMOCRATS MAY TRY ONCE MORE TO BREAK A GOP FILIBUSTER THAT HAS BLOCKED CLINTON'S PROPOSAL THE SUPREME COURT RULED 54 THAT COMPANIES MAY DEDUCT FROM TAXABLE INCOME THE DEPRECIATION OF SOME INTANGIBLE ASSETS SUCH AS CUSTOMER LISTS THE JUSTICES PARTIALLY SHIELDED EMPLOYERS FROM LITIGATION ACCUSING THEM OF AGE DISCRIMINATION BECAUSE THEY INTERFERED WITH PENSION BENEFITS STOCKS SLID AS BANK UTILITY AND AIRLINE SHARES FELL SHARPLY BOND PRICES DROPPED AND THE DOLLAR FELL TO ANOTHER LOW AGAINST THE YEN THE DOW JONES INDUSTRIALS DROPPED 2350 TO 344349 APPLE AND NOVELL ARE WORKING ON SOFTWARE THAT WOULD LET PERSONAL COMPUTERS BUILT WITH INTEL CHIPS RUN SOMEWHAT LIKE MACINTOSH MODELS IN A CHALLENGE TO MICROSOFT'S DOS SYSTEM PEOPLE FAMILIAR WITH THE EFFORT SAID SOFTWARE SUPPLIERS BORLAND AND WORDPERFECT ARE EXPECTED TODAY TO ANNOUNCE A WIDERANGING ALLIANCE SEARS POSTED RECORD FIRSTQUARTER PROFIT REFLECTING IMPROVED PERFORMANCES IN MOST OF ITS BUSINESSES BUT SHAREHOLDER ACTIVISTS STILL WANT ITS CHAIRMAN TO GIVE UP ONE OF HIS POSTS IBM POSTED A 285 MILLION FIRSTPERIOD LOSS AND SAID A TURNAROUND ISN'T IN SIGHT SALES OF IBM'S MAINFRAME COMPUTERS PLUNGED BUT ITS STOCK ROSE AMID RELIEF THAT THE LOSS WASN'T BIGGER TURNER BROADCASTING IS UNLIKELY TO BE BROKEN UP ACCORDING TO THE CEO OF TELECOMMUNICATIONS WHICH HOLDS A 25 STAKE IN THE CABLE COMPANY TALKS ON A POSSIBLE BREAKUP ARE SAID TO HAVE TURNED TO AN ENTIRELY DIFFERENT IDEA CITICORP CHEMICAL BANKING AND BANKERS TRUST POSTED STRONGER THAN EXPECTED FIRSTQUARTER EARNINGS BUT MANY BANK STOCKS SLID ON CONCERNS THAT INDUSTRY PROFITS MAY BE PEAKING CHICAGO'S BOARD OF TRADE WITHDREW ITS OFFER TO ACQUIRE NEW YORK'S COMEX ACKNOWLEDGING THAT COMEX TRADERS WERE LIKELY TO REJECT THE MERGER OF THE FUTURES EXCHANGES WASTE MANAGEMENT'S CHEMICAL WASTE UNIT POSTED WEAKERTHANEXPECTED QUARTERLY RESULTS THE UNIT'S STOCK PRICE TUMBLED 1625 TO 12875 THE PARENT'S FELL 125 TO 31875 SOUTHWESTERN BELL SPRINT BELL ATLANTIC AND GTE REPORTED SOLID ADVANCES IN FIRSTQUARTER EARNINGS BEFORE A NUMBER OF ONETIME ITEMS MARGIN LOANS TAKEN OUT BY INDIVIDUAL INVESTORS USING THEIR SECURITIES PORTFOLIOS AS COLLATERAL SOARED TO A RECORD 4516 BILLION AT THE END OF MARCH AMERICA ONLINE CUT THE PRICE OF ITS INFORMATION SERVICES FOR PERSONALCOMPUTER USERS IN A MOVE TO ACCELERATE ITS ALREADY FAST GROWTH ITS STOCK PRICE SLID 625 CENTS OR 28 TO 22 BROOKS BROTHERS SETTLED A RACEDISCRIMINATION CASE THAT STEMMED FROM AN UNDERCOVER INQUIRY IN WHICH INVESTIGATORS POSED AS JOB APPLICANTS TOKYO STOCKS SANK 14 TUESDAY FOR THEIR THIRD DROP IN A ROW IN THE WAKE OF THE YEN'S SURGE TO NEW HIGHS IN LONDON SHARE PRICES CLIMBED 13 REFLECTING OPTIMISM ABOUT THE PACE OF THE ECONOMIC RECOVERY IN BRITAIN EUROPEAN AND US NEGOTIATORS FAILED IN TWO DAYS OF TALKS TO RESOLVE A DISPUTE OVER EC PROCUREMENT PRACTICES THE TALKS ARE TO RESUME TODAY BONDS LEHMAN BROTHERS TREASURY INDEX 512760 OFF 1384 COMMODITIES OIL 1984 A BARREL OFF 15 CENTS DOW JONES FUTURES INDEX 12406 OFF 102 SPOT INDEX 12134 UP 005 DOLLAR 11055 YEN OFF 058 15963 MARKS OFF 00015 9304210024 930421 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE EUROPEAN COMMUNITY COMMISSION MAY RECEIVE A PROPOSAL TODAY FROM STEELMAKERS FOR A SELFHELP APPROACH TO RESTRUCTURING THE FINANCIALLY REELING SECTOR IN RESPONSE TO A COMMISSION ORDER TO DEVISE A PLAN TO SLASH PRODUCTION CAPACITY WHICH EXCEEDS DEMAND BY MILLIONS OF TONS ANNUALLY EUROPEAN STEEL COMPANIES AGREED TO SHOULDER COLLECTIVELY THE MAIN FINANCIAL BURDENS OF CLOSING PLANTS POSSIBLY THROUGH LOWCOST EC CREDITS A GERMAN STEEL FEDERATION OFFICIAL INDICATED IN RETURN STEELMAKERS WANT THE EC TO GIVE THEM POLITICAL AND REGULATORY SUPPORT ESPECIALLY BY LIMITING CHEAPER STEEL IMPORTS FROM EASTERN EUROPE THE INDUSTRY ALSO WANTS STRICTER DISCIPLINE ON MEMBER STATES' SUBSIDIES AN EFFECTIVE POLICY ON TRADE WITH NONEC STATES CONTINUED QUARTERLY EVALUATIONS OF THE MARKET AND HELP WITH SOCIAL COSTS SUCH AS THOSE RESULTING FROM LAYOFFS KYRGYZSTAN INTENDS TO INTRODUCE ITS OWN CURRENCY AS EARLY AS NEXT MONTH BECOMING THE FIRST FORMER SOVIET REPUBLIC IN CENTRAL ASIA TO ABANDON THE RUSSIAN RUBLE IT ALSO UNVEILED PLANS TO SELL OFF 35 OF STATE ENTERPRISES BY YEAR END AMONG REFORMS IN MOVING AWAY FROM A COMMAND ECONOMY KYRGYZSTAN WHICH AGREED TO REDUCE ITS BUDGET DEFICIT AS REQUIRED BY THE INTERNATIONAL MONETARY FUND EXPECTS TO SIGN A LOAN AGREEMENT WITH THE IMF BY NEXT MONTH THE IMF PACT WOULD QUALIFY THE REPUBLIC FOR AID FROM OTHER LENDERS MALAYSIA'S ECONOMY WILL EXPAND 75 THIS YEAR AND NEXT YEAR THE MALAYSIAN INSTITUTE OF ECONOMIC RESEARCH SAID IN LINE WITH FORECASTS BY OTHER PRIVATE AND GOVERNMENT ECONOMISTS THE ECONOMY GREW 8 LAST YEAR BRINGING THE AVERAGE OF THE PAST FIVE YEARS TO ALMOST 9 THE INSTITUTE AN INDEPENDENT THINK TANK SAID A STRENGTHENING US ECONOMY MAY COMPENSATE FOR SLACK DEMAND FOR MALAYSIAN EXPORTS IN ECONOMICALLY WEAKENED EUROPE AND JAPAN EXPORTS ALSO MAY BE BOOSTED BY BRISK GROWTH IN OTHER ASIAN NATIONS TO DEMONSTRATE ITS SERIOUSNESS ABOUT FIGHTING VIOLATIONS OF INTELLECTUAL PROPERTY RIGHTS THAILAND BURNED 250000 PIRATED AUDIOCASSETTE TAPES A MUSIC TRADE ASSOCIATION TURNED OVER THE TAPES OF FOREIGN MUSIC COLLECTED BY 18 MEMBER COMPANIES THE GROUP SAID ITS MEMBERS WERE COOPERATING WITH THE THAI EFFORT TO ENFORCE COPYRIGHT LAW AND WOULD STOP MAKING UNLICENSED COPIES OF FOREIGN TAPES THE US HAS ACCUSED THAILAND OF WIDESPREAD SALES OF PIRATED PRODUCTS AND PRESSURED IT TO PROTECT INTELLECTUAL PROPERTY THAILAND LAST OCTOBER SET UP A TASK FORCE THAT HAS RAIDED AND MADE ARRESTS AT SEVERAL BIG PRODUCERS OF AUDIO AND VIDEO TAPES POLAND'S INDUSTRIAL OUTPUT AND PRODUCTIVITY CONTINUES TO RISE BUT DEFICITS IN THE BUDGET AND FOREIGN TRADE BALANCE COULD UNDERMINE GROWTH FIRSTQUARTER INDUSTRIAL PRODUCTION CLIMBED 54 FROM A YEAR EARLIER AND PRODUCTIVITY ADVANCED 10 LAST YEAR GROSS NATIONAL PRODUCT ROSE 2 BUT THE LATEST GAINS MAY BE JEOPARDIZED BY A SWELLING DEFICIT IN FOREIGN TRADE WHICH REACHED 345 MILLION IN THE FIRST TWO MONTHS WHEN EXPORTS SLUMPED 17 WHILE IMPORTS ROSE 9 THE FIRSTQUARTER BUDGET DEFICIT WAS 236 TRILLION ZLOTYS 148 BILLION INDICATING THE 1993 GOAL OF AN 81 TRILLIONZLOTY DEFICIT MIGHT NOT BE MET SWEDISH BUSINESS BANKRUPTCIES IN THE FIRST QUARTER EDGED UP HALF A PERCENT TO 5589 FROM A YEAR EARLIER THOUGH TOTAL BANKRUPTCIES FELL 17 TO 5832 INSOLVENCIES REMAINED EXCEPTIONALLY HIGH AS THE 1992 FIRSTQUARTER FILINGS WERE THE MOST EVER RECORDED IN SWEDEN UP 32 FROM THE PREVIOUS YEAR IN THE MOST RECENT THREEMONTH PERIOD FAILURES IN THE TEXTILE SECTOR SURGED 31 TO 38 IN AGRICULTURE 15 TO 133 AND IN RETAILING 11 TO 723 VIOLENCE AND POLITICAL TURBULENCE HAVE LEFT INDIA'S TOURISM BUSINESS DEPRESSED AND RECOVERY SIGNS ARE SCARCE INDIA WAS ON ITS WAY TO FULFILLING HOPES OF ATTRACTING TWO MILLION TOURISTS LAST YEAR BUT THESE WERE DASHED WHEN HINDU EXTREMISTS DESTROYED AN ANCIENT MOSQUE AT AYODHYA DEC 6 AS HINDUMUSLIM RIOTS AND INSTABILITY FOLLOWED DECEMBER TOURIST VISITS PLUNGED 16 TO 171231 FROM A YEAR EARLIER HOLDING THE 1992 TOTAL TO 1860000 COMPARED WITH 1680000 IN 1991 THE COUNTRY ALSO HAD MOUNTED A TOURISM PUSH IN 1991 THAT FIZZLED WHEN THE PERSIAN GULF WAR AND INDIAN ELECTION VIOLENCE CAUSED TRAVEL DISRUPTIONS THAT RESULTED IN A CONTINUATION OF THE DECLINING TREND FROM 1710000 VISITORS IN 1990 A DROP FROM 1740000 IN THE PREVIOUS YEAR FOR RECURRING REASONSPOLITICAL INSTABILITY AND CASTE AND RELIGIOUS VIOLENCE THIS YEAR TOURISM FELL 16 IN JANUARY AND 12 IN FEBRUARY AND LAST MONTH WHEN BOMBINGS OCCURRED IN BOMBAY ISN'T EXPECTED TO BE MUCH BETTER A US STATE DEPARTMENT TRAVEL ADVISORY LIFTED MARCH 27 DIDN'T HELP AND INDIA IS SCRAMBLING NONE TOO SUCCESSFULLY TO PREVENT CONVENTION AND OTHER TOURISM CANCELLATIONS A NEW BELGIAN LAW ALLOWS BANKS TO ACQUIRE STAKES IN COMPANIES ALIGNING THE SECTOR WITH EUROPEAN COMMUNITY RULES SCIENTISTS WHO MEASURED MOUNT EVEREST FOUND THAT THE WORLD'S HIGHEST MOUNTAIN IN THE HIMALAYAS BORDERING NEPAL AND TIBET IS 29022 FEET 7 INCHES HIGH OR 6 FEET 8 INCHES LOWER THAN DETERMINED IN THE LAST MEASUREMENT IN 1974 9304210023 930421 LAW THREE CARPET FIRMS NAMED IN HAZARDOUSPRODUCT SUIT PHILADELPHIA THREE CARPET COMPANIES WERE CHARGED IN A LAWSUIT WITH CONCEALING ALLEGED HEALTH HAZARDS LINKED TO THEIR PRODUCTS THE SUIT FILED IN US DISTRICT COURT HERE STATES THAT SHAW INDUSTRIES INC BEAU LIEU OF AMERICA INC AND WORLD CARPETS INC ALL BASED IN DALTON GA HAVE FAILED TO DISCLOSE THE PRESENCE OF TOXINS IN THEIR PRODUCTS AND HAVE FALSELY REPRESENTED THAT THEIR CARPETING IS A SAFE AND FIT PRODUCT THE SUIT BROUGHT BY THREE RESIDENTIAL CUSTOMERS IN DELAWARE NEW JERSEY AND PENNSYLVANIA SEEKS UNSPECIFIED COMPENSATORY AND PUNITIVE DAMAGES THE PLAINTIFFS ACCORDING TO THE SUIT SUFFERED AILMENTS ATTRIBUTED TO EXPOSURE TO CHEMICALS KNOWN TO BE EMITTED FROM CARPETING ROBERT E SHAW PRESIDENT AND CHIEF EXECUTIVE OF SHAW SAID IN A PREPARED STATEMENT THAT THE SUIT HAD NO MERIT AND THAT THE COMPANY WOULD VIGOROUSLY FIGHT IT BEAU LIEU AND WORLD CARPETS OFFICIALS SAID THEY HADN'T SEEN THE COMPLAINT AND DECLINED TO COMMENT A SPOKESMAN FOR THE CONSUMER PRODUCT SAFETY COMMISSION IN SILVER SPRING MD SAID THE AGENCY HAS RECEIVED MORE THAN 500 COMPLAINTS OF AILMENTS LINKED TO NEWCARPET INSTALLATION SINCE 1988 THE AGENCY ADDED THAT IT HAS NO EVIDENCE THAT SPECIFIC CHEMICAL EMISSIONS COMING FROM CARPET ARE RESPONSIBLE FOR THE HEALTH COMPLAINTS ASSOCIATED WITH CARPET INSTALLATION 9304210022 930421 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 CENTRAL POWER & LIGHT CO 200 MILLION TWOPART ISSUE OF FIRST MORTGAGE BONDS PRICED THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST PART CONSISTING OF 100 MILLION OF FIRST MORTGAGE BONDS DUE APRIL 1 2000 WAS PRICED AS 6S AT 9975 TO YIELD 6044 THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 055 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE THE SECOND PART CONSISTING OF 100 MILLION OF FIRST MORTGAGE BONDS DUE APRIL 1 2023 WAS PRICED AS 7 1/2 S AT 99131 TO YIELD 7573 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 CENTRAL POWER & LIGHT IS A UNIT OF CENTRAL & SOUTH WEST CORP FEDERAL NATIONAL MORTGAGE ASSOCIATION 100 MILLION OF MEDIUMTERM NOTES DUE APRIL 29 2003 PRICED AT PAR TO YIELD 638 ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR THREE YEARS THE ISSUE WILL BE OFFERED THROUGH MERRILL LYNCH & CO THE MEDIUMTERM NOTES WERE PRICED AT A SPREAD OF 051 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE GANNETT CO 250 MILLION OF NOTES DUE MAY 1 2000 PRICED AT PAR TO YIELD 585 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WON BY DEALERS LED BY GOLDMAN SACHS & CO WAS PRICED AT A SPREAD OF 035 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE THE ISSUE IS RATED DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P INTERNATIONAL LEASE FINANCE CORP 100 MILLION OF NOTES DUE MAY 1 2000 PRICED AS 620S AT 99825 TO YIELD 6231 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 072 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE RATED SINGLEA2 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO JERSEY CENTRAL POWER & LIGHT CO 150 MILLION OF FIRST MORTGAGE BONDS DUE MAY 1 2003 PRICED AS 6 3/8 AT 99335 TO YIELD 6466 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WON BY DEALERS LED BY LEHMAN BROTHERS WAS REOFFERED AT A SPREAD OF 06 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE THE ISSUE IS RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P JERSEY CENTRAL P&L IS A UNIT OF GENERAL PUBLIC UTILITIES JERSEY CENTRAL POWER & LIGHT CO 125 MILLION OF FIRST MORTGAGE BONDS DUE MAY 1 2023 PRICED AS 7 1/2 AT 9917 TO YIELD 757 ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR 10 YEARS THE ISSUE WAS WON BY DEALERS LED BY MERRILL LYNCH & CO THE BONDS WERE REOFFERED AT A SPREAD OF 083 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND THE BONDS WERE PRICED AT A NET INTEREST COST TO THE BORROWER OF 7611 THE ISSUE IS RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P NEW ENGLAND TELEPHONE & TELEGRAPH CO 100 MILLION OF NOTES DUE MAY 1 2000 PRICED AS 5 3/4 S AT 99545 TO YIELD 583 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WON BY DEALERS LED BY JP MORGAN SECURITIES INC WAS PRICED AT A SPREAD OF 032 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE THE ISSUE IS RATED DOUBLEA2 BY MOODY'S AND DOUBLEAMINUS BY S&P NEW ENGLAND TELEPHONE IS A UNIT OF NYNEX CORP PHILLIPS PETROLEUM CO 250 MILLION OF DEBENTURES DUE APRIL 15 2023 PRICED AT PAR TO YIELD 792 ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR 10 YEARS THE ISSUE WAS PRICED AT A SPREAD OF 117 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO CALIFORNIA 3 BILLION 1993 SERIES A REVENUE ANTICIPATION NOTES PRICED BY A LEHMAN BROTHERS GROUP THE NOTES ARE 3S PRICED TO YIELD 25 ON JUNE 24 1993 MOODY'S HAS RATED THE ISSUE MIG1 S&P HAS ASSIGNED AN SP1 RATING AND FITCH INVESTORS SERVICE INC HAS ASSIGNED AN F1PLUS RATING FLORIDA BOARD OF EDUCATION 362 MILLION SERIES 1993A PUBLIC EDUCATION CAPITAL OUTLAY REFUNDING BONDS APPARENTLY WON BY BEAR STEARNS & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 5119 YIELDS WERE SET AT 25 IN 1994 TO 54 IN 2010 THE BONDS HAVE BEEN RATED DOUBLEA BY BOTH MOODY'S AND S&P HAMILTON COUNTY OHIO 125 MILLION SEWER SYSTEM IMPROVEMENT AND REVENUE REFUNDING BONDS PRICED BY A GROUP LED BY SEASONGOOD & MAYER OF CINCINNATI OHIO YIELDS FOR REOFFERED BONDS RANGE FROM 275 IN 1994 TO 568 IN 2016 THE BONDS ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P MASSACHUSETTS WATER RESOURCES AUTHORITY 5049 MILLION 1993 SERIES B GENERAL REVENUE REFUNDING BONDS PRICED BY A BEAR STEARNS & CO INC GROUP YIELDS RANGE FROM 27 IN 1994 TO 593 IN 2017 THE OFFERING HAS BEEN RATED SINGLEA BY MOODY'S AND FITCH S&P HAS ASSIGNED A SINGLEAMINUS RATING PUBLIC BUILDING COMMISSION OF CHICAGO 353 MILLION SERIES A OF 1993 BUILDING REVENUE BONDS PRICED BY A MERRILL LYNCH & CO GROUP YIELDS RANGE FROM 3 IN 1994 TO 59 IN 2018 THE BONDS WHICH ARE FOR CHICAGO'S BOARD OF EDUCATION ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 400 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY PAINEWEBBER INC THE OFFERING SERIES GOLD 1527 IS BACKED BY FREDDIE MAC GOLD 7 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 81 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2967 YEARS FEDERAL HOME LOAN MORTGAGE CORP 324 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY PAINEWEBBER INC THE OFFERING SERIES GOLD 1521 IS BACKED BY FREDDIE MAC GOLD SEVENYEAR 6 BALLOON MORTGAGES SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 665 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 683 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 2663 BILLION STRIPPED MORTGAGEBACKED SECURITIES TRUST 221 OFFERING MADE BY SEVEN UNDERWRITERS THE OFFERING IS BACKED BY FANNIE MAE 7 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 805 PLUS OR MINUS 10 BASIS POINTS AND THE WEIGHTED AVERAGE REMAINING TERM TO MATURITY IS 295 YEARS PLUS OR MINUS THREE MONTHS UNDERWRITERS AND THEIR ALLOTMENTS ARE AS FOLLOWS BEAR STEARNS & CO WITH 1 BILLION OF WHICH 750 MILLION WAS USED TO BACK REMIC 199373 DONALDSON LUFKIN & JENRETTE SECURITIES CORP WITH 500 MILLION LEHMAN BROTHERS WITH 3125 MILLION OF WHICH 300 MILLION WAS USED TO BACK REMIC 199375 PRUDENTIAL SECURITIES INC WITH 300 MILLION GOLDMAN SACHS & CO WITH 300 MILLION WHICH WAS USED FOR REMIC 199374 SALOMON BROTHERS INC WITH 200 MILLION AND NIKKO SECURITIES WITH 50 MILLION FEDERAL NATIONAL MORTGAGE ASSOCIATION 375 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES 199377 IS BACKED BY FANNIE MAE 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 765 AND WEIGHTED AVERAGE REMINING TERM TO MATURITY OF 2975 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 3001 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES 199374 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 2958 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY FIRST BOSTON CORP THE OFFERING SERIES 199378 IS BACKED BY FANNIE MAE 15YEAR 6 1/2 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 72 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1483 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY NOMURA SECURITIES THE OFFERING SERIES 199376 IS BACKED BY FANNIE MAE 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 6625 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1483 YEARS FEDERALMOGUL CORP 625 MILLION COMMON SHARES PRICED AT 19375 EACH THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP RECOGNITION INTERNATIONAL INC 2 MILLION COMMON SHARES PRICED AT 13 EACH THROUGH UNDERWRITERS LED BY BEAR STEARNS WPL HOLDINGS 15 MILLION COMMON SHARES PRICED AT 3550 EACH THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO ABBEY NATIONAL TREASURY SERVICES PLC UK 1 BILLION OF 6 1/2 EUROBONDS DUE MAY 12 2003 AT REOFFER PRICE 9950 VIA GOLDMAN SACHS INTERNATIONAL LTD AND UBS LTD YIELD AT REOFFER PRICE 657 SPREAD 60 BASIS POINTS ABOVE THE US TREASURY'S 6 1/4 NOTES DUE FEBRUARY 2003 FEES 030 POINT CREGEM FINANCE NV BELGIUM PARENT 100 MILLION OF SUBORDINATED COLLARED FLOATINGRATE EURONOTES DUE MAY 24 2003 VIA UBS LTD INTEREST FLOATS AT 1/4 POINT BELOW LONDON INTERBANK OFFERED RATE FOR US DOLLARS SUBJECT TO 5 1/8 MINIMUM 8 1/4 MAXIMUM ISSUE PRICE PAR GUARANTOR CREDIT COMMUNAL DE BELGIQUE FEES 1/2 POINT WESTDEUTSCHE LANDESBANK FINANCE CURACAO NV GERMAN PARENT 100 MILLION OF SUBORDINATED COLLARED FLOATINGRATE EURONOTES DUE MAY 25 2003 VIA LEHMAN BROTHERS INTERNATIONAL LTD AND KIDDER PEABODY INTERNATIONAL LTD INTEREST FLOATS AT 1/4 POINT BELOW LIBOR FOR US DOLLARS SUBJECT TO 5 MINIMUM 8 MAXIMUM ISSUE PRICE PAR GUARANTOR WESTDEUTSCHE LANDESBANK GIROZENTRALE FEES 1/2 CANADIAN NATIONAL RAILWAYS CANADA 150 MILLION CANADIAN DOLLARS OF 7 1/2 EUROBONDS DUE MAY 19 1998 AT ISSUE PRICE 10075 VIA SCOTIA MCLEOD INC REOFFERED AT 99175 TO YIELD 771 ANNUAL SPREAD 83 BASIS POINTS ABOVE CANADA'S 6 1/4 NOTE DUE FEBRUARY 1998 FEES 1 7/8 ZLAENDERBANK BANK AUSTRIA AG AUSTRIA 150 MILLION CANADIAN DOLLARS OF 7 1/4 EUROBONDS DUE MAY 19 1998 AT ISSUE PRICE 101325 VIA SWISS BANK CORP REOFFERED AT 9970 TO YIELD 732 ANNUAL SPREAD 47 BASIS POINTS ABOVE CANADA'S 6 1/4 CANADIAN GOVERNMENT NOTE DUE FEBRUARY 1998 FEES 1 7/8 GENERAL ELECTRIC CAPITAL CORP US 125 MILLION CANADIAN DOLLARS OF 7 EUROBONDS DUE MAY 21 1997 AT ISSUE PRICE 101 1/2 VIA MORGAN STANLEY INTERNATIONAL LTD REOFFERED AT 1001 TO YIELD 697 SPREAD 40 BASIS POINTS ABOVE CANADA'S 6 1/2 BONDS DUE AUGUST 1996 FEES 1 5/8 POINTS RABOBANK NEDERLAND NETHERLANDS 150 MILLION CANADIAN DOLLARS OF 7 EUROBONDS DUE MAY 20 1997 AT ISSUE PRICE 1014 VIA SWISS BANK CORP REOFFERED AT PAR TO YIELD 7 ANNUAL SPREAD 44 BASIS POINTS ABOVE CANADA'S 6 1/2 DUE AUGUST 1996 FEES 1 5/8 KFW INTERNATIONAL FINANCE DELAWARE INC GERMAN PARENT 15 BILLION FRENCH FRANCS OF 7 EUROBONDS DUE MAY 12 2000 AT ISSUE PRICE 100395 VIA PARIBAS LTD REOFFERED AT 9882 TO YIELD 722 ANNUAL A MARGIN OF ABOUT 21 BASIS POINTS ABOVE THE FRENCH TREASURY'S 10 1/2 BONDS DUE 2000 GUARANTOR KREDITANSTALT FUER WIEDERAUFBAU FEES 1 7/8 STATE BANK OF SOUTH AUSTRALIA AUSTRALIA 100 MILLION AUSTRALIAN DOLLARS OF 7 1/4 EUROBONDS DUE JUNE 5 2000 AT ISSUE PRICE 9980 VIA HAMBROS BANK LTD YIELD 764 AT A PRICE OF 97925 BREAKEVEN FOR COMANAGING BANKS AFTER DEDUCTING FULL COMMISSIONS GUARANTOR STATE OF SOUTH AUSTRALIA FEES 2 LAND & HOUSES PLC THAILAND 60 MILLION OF CONVERTIBLE EUROBONDS DUE APRIL 29 2003 VIA ROBERT FLEMING & CO LTD INTEREST AT 5 ANNUAL AFTER WITHHOLDING TAX ISSUE PRICE PAR EACH 1000 BOND CONVERTIBLE FROM AUGUST 1992 INTO 82 LAND & HOUSES FOREIGNBOARD OF THE THAI STOCK EXCHANGE LISTED ORDINARY SHARES AT A PRICE OF 30731 THAI BHAT AT PREMIUM OF 147 ABOVE FIVEDAY AVERAGE CLOSING OF ORDINARY DOMESTIC SHARES AT FIXED EXCHANGE RATE OF 252 THAT PER US DOLLAR CALLABLE AFTER THREE YEARS FIVE MONTHS AT PAR FEES 2 7/8 MARUTOMI GROUP CO JAPAN 10 BILLION YEN OF 1 5/8 CONVERTIBLE EUROBONDS DUE FEB 20 1998 AT ISSUE PRICE PAR VIA NOMURA INTERNATIONAL PLC CONVERTIBLE FROM MAY 24 1993 TO FEB 12 1998 INTO MARUTOMI SHARES AT INDICATED 2 1/2 PREMIUM ABOVE CLOSING PRICE ON APRIL 23 WHEN TERMS SET FEES 2 1/2 9304210021 930421 EXECUTIVE PAY A SPECIAL REPORT CASH PLEASE STOCK OPTIONS LOSE THEIR ALLURE IN THE BIOTECH INDUSTRY BY UDAYAN GUPTA IN 1982 MANAGEMENT CONSULTANT KENNETH MOCH TOOK A 20 PAY CUT WHEN HE BECAME VICE PRESIDENT OF LIPOSOME CO A BIOTECHNOLOGY STARTUP COMPANY THE 27YEAROLD EXECUTIVE DIDN'T MIND BECAUSE HE ALSO GOT A BUNDLE OF VERYLOWPRICED STOCK OPTIONS IN FACT THE OPTIONS IF EXERCISED WOULD HAVE REPRESENTED NEARLY 2 OF THE FLEDGLING PRINCETON NJ FIRM TODAY MR MOCH TAKES A MUCH DIFFERENT VIEW OF STOCK OPTIONS AS CHIEF EXECUTIVE OFFICER OF BIOCYTE CORP IN NEW YORK HE STILL USES OPTIONS TO ATTRACT TOP BUSINESS EXECUTIVES TO THE THREEYEAROLD COMPANY BUT JOB APPLICANTS AREN'T CLAMORING FOR THE KIND OF DEAL THAT MR MOCH GOT 11 YEARS AGO INSTEAD THEY ARE SEEKING AND GETTING BIGGER CASH SALARIES AND RELATIVELY SMALLER PACKAGES OF OPTIONS THE ALLURE OF STOCK OPTIONS ONCE THE DOMINANT COMPENSATION CURRENCY FOR CASHSTARVED BIOTECHNOLOGY COMPANIES IS DIMINISHING ON ONE SIDE EMPLOYEES ARE INCREASINGLY WARY OF OPTIONS MANY OF WHICH HAVE BECOME WORTHLESS AMID THE INDUSTRY'S PERSISTENT SWINGS BETWEEN EUPHORIA AND DOOM AT THE SAME TIME PROPOSED ACCOUNTING CHANGES WILL MAKE COMPANIES LESS EAGER TO OFFER OPTIONS IN LIEU OF CASH STOCK AND STOCK OPTIONS AREN'T THE OVERWHELMINGLY ATTRACTIVE FORCE IN COMPENSATION PACKAGES THEY ONCE WERE SAYS MR MOCH THERE'S GREATER UNDERSTANDING OF BOTH THEIR UPSIDE AND THEIR SHORTCOMINGS STOCK OPTIONS CERTAINLY CAN CREATE GREAT WEALTH LOOK AT THE SPECTACULAR SUCCESS OF BIOTECH GIANTS SUCH AS GENENTECH INC AND AMGEN INC WHERE DOZENS OF EMPLOYEES BECAME MILLIONAIRES BY EXERCISING OPTIONS WHOSE VALUE HAD INCREASED GREATLY SUCH SUCCESS STORIES CONTINUE TO MAKE OPTIONS A POPULAR WAY FOR FASTGROWING TECHNOLOGY COMPANIES TO ATTRACT MOTIVATE AND REWARD ESTABLISHED PHARMACEUTICALINDUSTRY EXECUTIVES AND SCIENTISTS BUT SHARP DROPS EARLIER THIS YEAR IN THE STOCK PRICES OF COMPANIES SUCH AS CENTOCOR INC SYNERGEN INC AND XOMA CORP ARE PAINFUL REMINDERS THAT OPTIONS CAN LOSE MUCH OF THEIR VALUE OVERNIGHT AS A RESULT STOCK OPTIONS JUST AREN'T THE DEAL CLINCHERS THAT THEY ONCE WERE SAYS WILLIAM HOLODNAK PRESIDENT OF J ROBERT SCOTT AN EXECUTIVERECRUITING FIRM IN BOSTON EXECUTIVES ACUTELY CONSCIOUS OF THE ROLLERCOASTER QUALITY OF BIOTECHNOLOGY STOCK PRICES ARE CLAMORING FOR MORE CASH SAYS FRANK BALDINO CHIEF EXECUTIVE OFFICER OF CEPHALON INC THE WEST CHESTER PA BIOTECH COMPANY IS DEVELOPING PRODUCTS TO TREAT NEUROLOGICAL DISEASES AND DISORDERS THE ROLE OF OPTIONS IN BIOTECHINDUSTRY COMPENSATION COULD SOON BE AFFECTED BY THE ACCOUNTING CHANGES AS WELL LATER THIS SPRING THE FINANCIAL ACCOUNTING STANDARDS BOARD CHIEF RULE MAKER FOR ACCOUNTANTS MAY PROPOSE THAT THE VALUE OF STOCK OPTIONS GRANTED EACH YEAR BE DEDUCTED FROM REPORTED PROFITS FASB PROBABLY WILL TAKE ACCOUNT OF THE POTENTIAL FOR FUTURE EARNINGS WHICH CAN BE BIG FOR HIGHTECH COMPANIES EMERGING BUSINESSES AMONG THEM MOST BIOTECHNOLOGY CONCERNS ARE LIKELY TO FEEL THE GREATEST IMPACT FROM THE PROPOSED CHANGES SAYS DENNIS BERMAN A PARTNER WITH MUDGE ROSE GUTHRIE ALEXANDER & FERDON A NEW YORK LAW FIRM AS A RESULT SOME BIOTECH COMPANIES WILL REDUCE THEIR USE OF STOCK OPTIONS THE FASB PROPOSAL WILL HAVE A VERY NEGATIVE IMPACT ON EMERGING COMPANIES IF IMPLEMENTED SAYS JIM VINCENT CHIEF EXECUTIVE OFFICER OF BIOGEN INC A SMALL BUT PROFITABLE BIOTECH COMPANY IN CAMBRIDGE MASS THE CLINTON ADMINISTRATION'S ANTICIPATED REGULATORY OVERHAUL OF THE PHARMACEUTICAL INDUSTRY ALSO COULD AFFECT THE POPULARITY OF STOCK OPTIONS AT EMERGING BIOTECH COMPANIES SAYS MR VINCENT OPTIONS' USEFULNESS WILL SHRINK HE SAYS IF AT THE END OF THE DAY THE PHARMACEUTICAL AND BIOTECHNOLOGY INDUSTRIES ARE SEEN BY WALL STREET AS UNATTRACTIVE INVESTMENTS BECAUSE OF NEW FEDERAL REGULATIONS THE BIOTECH INDUSTRY'S RECENT STOCKMARKET VOLATILITY ALREADY IS BUFFETING MANY COMPANIES AND ALTERING HOW THEY STRUCTURE COMPENSATION PACKAGES BIG DROPS IN BIOTECH COMPANIES' STOCK PRICES HAVE LEFT THOUSANDS OF EMPLOYEES HOLDING STOCK OPTIONS WITH EXERCISE PRICES FAR ABOVE THE CURRENT MARKET PRICES CEPHALON'S SHARE PRICE FOR EXAMPLE HAS TRADED BETWEEN 10 AND 15 A SHARE SINCE EARLY THIS YEAR BUT I GOT A LOT OF GUYS WHOSE OPTIONS ARE AT 16 A SHARE DR BALDINO SAYS THOUGH CEPHALON PLANS TO KEEP OFFERING NEW MANAGERS STOCK OPTIONS IT ALSO IS PAYING THEM MORE CASH PREVIOUSLY CASH COMPENSATION TO NEW EMPLOYEES COULD BE AS MUCH AS 50 LESS THAN IN THEIR PREVIOUS JOBS AND CEPHALON WOULD MAKE THAT UP WITH LOTS OF OPTIONS DR BALDINO SAYS THESE DAYS HE ADDS CEPHALON GIVES FAR FEWER OPTIONS BECAUSE ITS CASH PACKAGE IS SO MUCH HIGHER NEW EMPLOYEES ALSO ARE DEMANDING MORE CASH AT PHARMOS INC A NEW YORK BIOTECH CONCERN WHOSE STOCK PRICE HAS SLID SHARPLY FROM NOVEMBER'S PEAK OF 350 A SHARE THE NEW EMPLOYEES FEEL THEY WANT TO BE MADE WHOLE NOW SAYS HENRY M DACHOWITZ THE CONCERN'S CHIEF FINANCIAL OFFICER WARY ABOUT THE BIOTECH BUSINESS'S VOLATILE STOCK PERFORMANCE PROSPECTIVE NEWCOMERS DON'T BELIEVE IN TAKING A CUT IN THEIR CASH COMPENSATION TO JOIN PHARMOS MR DACHOWITZ SAYS NOR CAN THEY BE LURED WITH EXTRA OPTIONS HE ADDS HE RECALLS THAT PHARMOS PAID COMPETITIVE CASH PACKAGES ALONG WITH SOME OPTIONS TO RECRUIT TWO SENIOR RESEARCH SCIENTISTS LAST YEAR WOULD THE SCIENTISTS HAVE COME FOR PROPORTIONATELY LESS CASH AND MORE OPTIONS NO WAY MR DACHOWITZ ANSWERS THE LOST LUSTER OF OPTIONS HOWEVER HASN'T TRIGGERED ANY FLIGHT BY EXISTING EMPLOYEES AT LEAST NOT YET I HAVEN'T SEEN A MASS OR EVEN A MINIEXODUS FROM THESE COMPANIES SAYS WILLIAM S REARDON A PARTNER AT CONSULTANTS COOPERS & LYBRAND IN BOSTON MOST EMPLOYEES ARE THERE FOR THE LONG HAUL THEY UNDERSTAND THAT THE MARKET IS VOLATILE AND WHIMSICAL RECRUITERS MAY TRY TO TEMPT SOME EXECUTIVES TO DEPART HOWEVER CONSIDER REPLIGEN CORP A CAMBRIDGE MASS CONCERN THAT IS DEVELOPING THERAPEUTIC DRUGS FOR CANCER AND OTHER DISEASES AT REPLIGEN WHOSE SHARE PRICE HAS GENERALLY BEEN FALLING SINCE JANUARY MANY SENIOR EXECUTIVES HOLD STOCK OPTIONS WITH EXERCISE PRICES QUITE A BIT HIGHER THAN THE CURRENT STOCK PRICE ACCORDING TO RAMESH RATAN CHIEF FINANCIAL OFFICER THE SHAREPRICE DECLINE HAS SPARKED A LOT OF CALLS LATELY FROM HEADHUNTERS WONDERING WHETHER HE WANTS TO LEAVE I'M HERE FOR THE LONG TERM SAYS THE 42YEAR OLD FINANCIAL OFFICER WHO HAS WORKED AT REPLIGEN FOR 6 1/2 YEARS BUT A PERSISTENT STOCKPRICE SLIDE DOES CRIMP REPLIGEN'S ABILITY TO USE STOCK OPTIONS AS A RECRUITING TOOL MR RATAN CONCEDES BECAUSE THE COMPANY ALREADY GIVES HIGHER CASH PACKAGES TO NEW RECRUITS HE SAYS IT CAN'T AFFORD TO ALSO OFFER MORE OPTIONS TO OFFSET THEIR REDUCED VALUE INSTEAD REPLIGEN HAS REVAMPED ITS BUSINESS STRATEGY PARTLY TO ATTRACT THE MOST TALENTED WORKERS IN CHOOSING NEW BUSINESS AREAS WE'RE LOOKING AT UNIQUE NICHES SAYS MICHAEL EGAN VICE PRESIDENT OF BUSINESS DEVELOPMENT WE WANT PEOPLE TO COME HERE BECAUSE WE'RE WORKING ON A TECHNOLOGY THEY CAN'T FIND ELSEWHERE IN THE PAST MANY BIOTECH COMPANIES ACCOMMODATED SHARP GAPS BETWEEN STOCK PRICES AND OPTIONS' EXERCISE PRICES BY ROUTINELY REPRICING THESE SOCALLED UNDERWATER OPTIONS REPLIGEN DID THIS AFTER THE OCTOBER 1987 STOCKMARKET CRASH CAUSED ITS SHARE PRICE TO PLUMMET MORE THAN 50 TO 650 A SHARE BUT THE PRACTICE NOW HAS FALLEN OUT OF FAVOR BECAUSE MANY CORPORATE BOARDS FEEL IT ISN'T EQUITABLE TO STOCKHOLDERS THE COMPANY HAS SOLD STOCK TO THE PUBLIC AT A CERTAIN PRICE SAYS CEPHALON'S DR BALDINO IT ISN'T APPROPRIATE THEN TO SINGLE OUT A CERTAIN GROUP SUCH AS EMPLOYEES FOR PRICE REDUCTION MR GUPTA IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9304210020 930421 BUSINESS BRIEF AMERICAN MANAGEMENT SYSTEMS FIRSTQUARTER NET FELL 20 REFLECTING YEAREARLIER GAIN AMERICAN MANAGEMENT SYSTEMS INC REPORTED A 20 DROP IN FIRSTQUARTER NET INCOME LARGELY BECAUSE IT HAD A GAIN IN LAST YEAR'S FIRST QUARTER THE INFORMATION TECHNOLOGY CONSULTING COMPANY REPORTED NET OF 35 MILLION OR 22 CENTS A SHARE COMPARED WITH 44 MILLION OR 28 CENTS A SHARE IN THE YEAR EARLIER PERIOD THE 1992 FIRST QUARTER INCLUDED A GAIN OF 16 MILLION OR 10 CENTS A SHARE FROM CHANGES IN ACCOUNTING FOR INCOME TAX REPORTING REVENUE FOR THE QUARTER INCREASED 13 TO 758 MILLION NET IN THIS YEAR'S FIRST QUARTER WOULD HAVE INCREASED 20 HAD IT NOT BEEN FOR THE YEAREARLIER GAIN THE ARLINGTON VA FIRM SAID IT SEES SOLID GROWTH PROSPECTS IN KEY MARKETS ESPECIALLY FROM THE FEDERAL GOVERNMENT IT SAID REVENUE FROM FEDERAL GOVERNMENTRELATED WORK WAS FLAT IN THE FIRST QUARTER DUE TO THE CHANGE IN ADMINISTRATION 9304210019 930421 ENTERPRISE FTC CASE TAKES AIM AT FIRMS CLAIMING TO SELL DREAMS INVENTIONMARKETING CONCERN CHARGED WITH MISREPRESENTING SERVICES BY BRENT BOWERS AND JOHN R EMSHWILLER STAFF REPORTERS OF THE WALL STREET JOURNAL AS PART OF A CRACKDOWN ON FIRMS THAT ALLEGEDLY CHEATED THOUSANDS OF INVENTORS AND WOULDBE ENTREPRENEURS THE FEDERAL TRADE COMMISSION FILED CHARGES AGAINST INVENTION SUBMISSION CORP OF PITTSBURGH ALLEGING THAT THE FIRM MADE FALSE CLAIMS ABOUT ITS SERVICES THE AGENCY ASKED A FEDERAL COURT TO ORDER THE COMPANY TO REPAY CUSTOMERS UP TO SEVERAL MILLION DOLLARS IN FEES INVENTION SUBMISSION IS BELIEVED TO BE ONE OF THE MOST ACTIVE CONCERNS THAT PROMISE TO MARKET INVENTIONS BY WOULDBE ENTREPRENEURS INVESTIGATORS AND GOVERNMENT OFFICIALS SAY MANY SUCH FIRMS BILK INVENTORS OUT OF TENS OF MILLIONS OF DOLLARS ANNUALLY THE VICTIMS OFTEN ASPIRING ENTREPRENEURS WHO BELIEVE THEY HAVE COME UP WITH MONEYMAKING IDEAS LACK THE SKILLS AND CAPITAL TO COMMERCIALIZE THEM IN US DISTRICT COURT IN PITTSBURGH THE FTC ACCUSED ISC OF MISREPRESENTING THE NATURE QUALITY AND SUCCESS RATE OF THE INVENTIONPROMOTION SERVICES IT SELLS TO CONSUMERS FOR PRICES RANGING UP TO 5000 VIRTUALLY NONE OF THE COMPANY'S CUSTOMERS HAVE EARNED MORE FOR THEIR INVENTIONS THAN THEY PAID FOR THE PROMOTION SERVICES THE AGENCY CHARGED THIS IS A VERY SIGNIFICANT CASE THIS COMPANY HAS DEALT WITH TENS OF THOUSANDS OF INVENTORS SINCE 1984 MS MORSE SAID LEGAL WRANGLING ENSUED SHE SAID ISC FOUGHT HER EFFORTS TO OBTAIN COMPANY DOCUMENTS ALL THE WAY TO THE SUPREME COURT IF THE DISTRICT COURT ORDERS ISC TO MAKE REDRESS SHE ADDED REPAYMENTS COULD TOTAL MANY MILLIONS OR EVEN TENS OF MILLIONS OF DOLLARS ISC DENIED WRONGDOING IN A STATEMENT THE COMPANY SAID IT STRONGLY BELIEVES THE FTC COMPLAINT IS WITHOUT MERIT AND EXPECTS THE MATTER TO BE RESOLVED IN ITS FAVOR BUT INVENTORS' ORGANIZATIONS EXPRESSED RELIEF AT THE FTC ACTION IT'S ABOUT TIME SAID CLAYTON WILLIAMSON PRESIDENT OF THE KANSAS ASSOCIATION OF INVENTORS A NONPROFIT GROUP MR WILLIAMSON WHO IS VIEWED AS ONE OF THE MOST ACTIVE DEFENDERS OF INVENTORS' RIGHTS NATIONALLY SAID THAT ISC IS PROBABLY THE BIGGEST INVENTIONMARKETING COMPANY CURRENTLY OPERATING HE ESTIMATED THAT IN THE PAST SIX YEARS HE RECEIVED AT LEAST 300 COMPLAINTS FROM INVENTORS ABOUT ISC THE FTC COMPLAINT ALSO NAMED THREE OTHER PITTSBURGH COMPANIES ASSOCIATED WITH ISC AND MARTIN BERGER THE SOLE OFFICER AND DIRECTOR OF ALL FOUR SOME INVENTORS' GROUPS WORRIED THAT THE IMPACT OF YESTERDAY'S COURT ACTION WOULD BE LIMITED INDEED MARKETERS HAVE PREYED ON THE VULNERABILITY OF AMATEUR INVENTORS FOR DECADES AND PREVIOUS MOVES AGAINST THEM HAVE HAD LIMITED EFFECT THEY OBSERVED AS SOON AS THEY GET A DECREE LIKE THIS THESE FIRMS CHANGE THEIR NAMES AND JUST KEEP ON OPERATING SAID BOBBY TOOLE PRESIDENT OF THE UNITED INVENTORS ASSOCIATION OF THE USA MS TOOLE POINTED TO MR BERGER A FAMILIAR FIGURE IN THE INVENTIONMARKETING BUSINESS AS A CASE IN POINT IN 1984 SEVERAL STATES FILED SUIT AGAINST HIM AND INVENTION MARKETING INC A FIRM THAT HE ALLEGEDLY OWNED THE STATE OF PENNSYLVANIA FILED SUIT IN AN ALLEGHENY COUNTY STATE COURT CHARGING MR BERGER AND INVENTION MARKETING WITH MISLEADING STATEMENTS ABOUT THE EXTENT OF THEIR SERVICES AND THEIR ABILITY TO MARKET INVENTIONS SUCCESSFULLY WHILE DENYING ANY WRONGDOING INVENTION MARKETING AGREED TO MAKE CHANGES IN ITS SALES PROCEDURES AND TO RETURN 62500 TO UNHAPPY CUSTOMERS BOGUS INVENTIONMARKETING FIRMS TAKE MONEY FROM INVENTORS WHO OFTEN CAN ILL AFFORD SUCH FEES MS TOOLE CONTENDED THE FIRMS PROMISE TO HELP MARKET THE INVENTIONS OFTEN CLAIMING THAT THEY HAVE DATA BANKS OF RESOURCES IDENTIFYING MANUFACTURERS WHO ARE KEEN FOR NEW PRODUCTS MANY INVENTORS WANT TO BE ENTREPRENEURS AND GO INTO BUSINESS AND SUCCEED INSTEAD THEY PAY THOUSANDS OF DOLLARS EACH TO THESE FIRMS AND GET NOTHING SAID MS TOOLE WHOSE ST LOUISBASED NONPROFIT ORGANIZATION IS AN UMBRELLA GROUP FOR 52 INVENTORS' ASSOCIATIONS AROUND THE COUNTRY MR BERGER'S PAST PROBLEMS DIDN'T STOP HIM FROM MAKING AN ALLIANCE WITH THE US SMALL BUSINESS ADMINISTRATION THE SBA WAS PLANNING TO COSPONSOR NEXT MONTH PART OF A TRADE SHOW FOR INVENTORS ORGANIZED BY MR BERGER'S COMPANIES THE SBA'S NAME HAS BEEN USED IN FLYERS PROMOTING THE SHOW CALLED IMPEX SAID MS TOOLE AND MR WILLIAMSON THE TWO INVENTORS' GROUP LEADERS THE SBA ALSO AGREED TO CONTRIBUTE UP TO 8000 TO PAY FOR MAILINGS PROMOTING THE SHOW IMPEX IS ALSO SPONSORED BY TWO OF MR BERGER'S FIRMS INVENTION SUBMISSION AND INTROMARK ACCORDING TO A SPOKESWOMAN FOR THE COMPANIES IN LIGHT OF THE FTC COMPLAINT THE SBA SAID YESTERDAY IT HAS NOW DECIDED NOT TO PARTICIPATE IN ITS COMPLAINT YESTERDAY THE FTC NOTED THAT ISC AND ITS SISTER FIRMS OFFER A VARIETY OF SERVICES RANGING FROM A BASIC INFORMATION PACKAGE FOR A FEW HUNDRED DOLLARS TO MARKETING PROGRAMS THAT CAN COST SEVERAL THOUSAND DOLLARS INVENTORS COMPLAIN THAT MANY MARKETING FIRMS WHILE CAUTIONING IN PROMOTIONAL MATERIAL THAT THEY CAN'T GUARANTEE SUCCESS OR RICHES GUSH ON THE TELEPHONE ABOUT ALMOST ANY IDEA THAT COMES THEIR WAY IN YESTERDAY'S COMPLAINT THE FTC CHARGED THAT THE DEFENDANTS HAVE MADE NUMEROUS FALSE REPRESENTATIONS INCLUDING CLAIMS AND THAT THE DEFENDANTS HAVE SPECIALIZED VALUABLE ACCESS TO MANUFACTURERS IN ITS STATEMENT ISC TRIED TO DISTANCE ITSELF FROM OTHER MARKETING FIRMS THE COMPANY SAID IT HAS SHOWN THE FTC THAT IT DIFFERENTIATES ITSELF FROM OTHER INVENTION COMPANIES THAT IT PROVIDES A USEFUL AND VALUABLE SERVICE AND THAT IT ACCURATELY INFORMS CONSUMERS OF THEIR RIGHTS