GREAT ATLANTIC & PACIFIC TEA CO MONTVALE NJ MOODY'S INVESTORS SERVICE INC DOWNGRADED THE LONGTERM DEBT RATING OF THIS SUPERMARKET OPERATOR CITING INTENSE COMPETITION AT THE COMPANY'S CORE GROCERY STORE UNITS ABOUT 300 MILLION IN LONGTERM DEBT IS AFFECTED MOODY'S LOWERED THE RATING TO BAA1 FROM BAA2 THE RATINGS AGENCY SAID THE COMPANY'S KEY GROCERY OPERATIONS IN THE NORTHEAST AND CANADA SHOULD BEGIN TO SHOW SALES AND EARNINGS IMPROVEMENTS IN FISCAL 1993 BUT LOW INFLATION FOR FOOD PRICES AND UNCERTAIN CONSUMER SPENDING MAY HAMPER INCREASES IN MARGINS AND DEBT COVERAGE RATIOS MOODY'S SAID A&P OFFICIALS COULDN'T BE REACHED TO COMMENT THE COMPANY MAJORITYOWNED BY GERMAN RETAILER TENGELMANN GROUP OPERATES ABOUT 1200 SUPERMARKETS PRIMARILY IN THE NORTHEAST MICHIGAN AND ONTARIO 9304210017 930421 OTC FOCUS OTC STOCKS FOLLOW BOND MARKET LOWER BANKING AND UTILITY SECTORS HIT HARDEST BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK A WEAK BOND MARKET UNDERMINED OVERTHECOUNTER STOCKS SENDING PRICES LOWER PARTICULARLY IN THE INTERESTRATE DRIVEN FINANCIAL AND UTILITY SECTORS THE NASDAQ COMPOSITE INDEX ENDED WEAKER FOR THE FOURTH CONSECUTIVE SESSION DROPPING 106 POINTS OR 016 TO 66197 DECLINERS FAR EXCEEDED ADVANCERS BY 1526 ISSUES TO 1171 TRADING WAS ACTIVE WITH NASDAQ NATIONAL MARKET SYSTEM VOLUME AT 212724564 SHARES COMPARED WITH 186849400 SHARES MONDAY OTC STOCKS STARTED THE DAY FRACTIONALLY HIGHER BUT THEN DROPPED TO THEIR LOWEST LEVELS IN MIDAFTERNOON BEFORE RETAKING SOME GROUND NEAR THE CLOSE THE TREASURY'S BELLWETHER 30YEAR BOND ENDED NEARLY 3/8 POINT LOWER PUSHING ITS YIELD UP TO ABOUT 675 THE LARGER EXCHANGE TOOK ITS KNOCKS ALSO AND THE DOW JONES INDUSTRIAL AVERAGE WAS ABOUT 46 POINTS LOWER INTRADAY ON FUTURESRELATED PROGRAM SELLING THE INDUSTRIALS FINISHED 2350 POINTS OR 068 LOWER AT 344349 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX LOST 130 POINTS OR 053 AT 24572 TRADERS WERE HARD PRESSED TO EXPLAIN WHY THE OTC MARKET CHOSE YESTERDAY'S SESSION TO REACT TO BOND PRICES NASDAQ ISSUES WERE SEEMINGLY OBLIVIOUS OF BONDS AS RECENTLY AS MONDAY WHEN OTC ISSUES FELL AND BONDS CLIMBED BUT SOME SUGGEST THAT THE COMBINATION OF WEAKER BONDS AND THE RALLY AMONG BANK AND UTILITY STOCKS WHICH MADE THEM DUE FOR CORRECTION MAY HAVE CAPPED OTC PRICES BANKS AND ENERGIES HAD BEEN STRONG BUT SHOWED SOME SIGNS OF BOTTOMING OUT TODAY SAID BOB MCINTYRE SENIOR VICE PRESIDENT OF EQUITY TRADING AT PRINCIPAL EPPLER GUERIN MARKET WATCHERS ALSO SAY THAT CORPORATE EARNINGS RELEASES CONTINUE TO MAKE INVESTORS NERVOUS TOM CONNELL HEAD OF NASDAQ TRADING AT GRUNTAL & CO POINTS TO PURITANBENNETT WHICH PLUNGED 4 TO 15 1/4 AFTER BEING DOWNGRADED BY LEHMAN BROTHERS AND PIPER JAFFRAY PIPER SAID IT EXPECTS THE OVERLAND PARK KANSAS MEDICAL PRODUCTS FIRM'S EARNINGS FOR THE FIRST QUARTER ENDING THIS MONTH TO BE BELOW MOST ESTIMATES BECAUSE OF THE COMPANY'S REGULATORY TALKS WITH THE FOOD AND DRUG ADMINISTRATION ALL IT TAKES IS FOR EARNINGS TO BE OFF BY A COUPLE OF PENNIES OR AN OUTLOOK TO BE LOWER AND BOOM MR CONNELL SAID THE NASDAQ FINANCIAL INDEX WHICH MEASURES THE LARGEST FINANCIAL CONCERNS DROPPED 996 POINTS OR 115 TO 85403 THE NASDAQ BANK INDEX SLID 637 POINTS OR 1 TO 63308 WASHINGTON MUTUAL SANK 1 1/8 TO 31 1/8 THE SEATTLE COMPANY REPORTED FIRSTQUARTER OPERATING INCOME WAS UNCHANGED AT 77 CENTS A SHARE THE COMPANY RAISED ITS QUARTERLY DIVIDEND TO 16 CENTS FROM 15 CENTS ALSO LOWER WERE BAYBANKS WHICH TUMBLED 2 7/8 TO 46 3/8 AND ACTIVELY TRADED STATE STREET BANK WHICH FELL 1 5/8 TO 32 FOLLOWING A POOR PERFORMANCE LAST WEEK THE UTILITY SECTOR WAS ALSO HIT HARD AND THE NASDAQ UTILITY INDEX TOPPLED 1327 POINTS OR 168 TO 77333 MCI COMMUNICATIONS DROPPED 1 3/4 POINTS TO END AT 45 7/8 COMMUNICATIONS SATELLITE SAID ITS WORLD SYSTEMS SUBSIDIARY SIGNED A LONGTERM CONTRACT WITH MCI'S MCI INTERNATIONAL UNIT TO PROVIDE INTERNATIONAL PUBLICSWITCHED CIRCUITS ON THE INTELSAT SATELLITE SYSTEM ON THE BIG BOARD COMSAT GAINED 1/4 TO 59 1/4 TECHNOLOGY ISSUES WERE MOSTLY HIGHER INTEL THE MOST ACTIVELY TRADED ISSUE ADDED 3 1/4 TO 101 AFTER LOSING 12 1/4 POINTS MONDAY SEAGATE TECHNOLOGY OF SCOTTS VALLEY CALIF ADDED 1 3/4 TO 15 7/8 IN ACTIVE TRADING AFTER A BEAR STEARNS ANALYST UPGRADED THE COMPANY'S SHARES TO BUY FROM HOLD ADDITIONALLY CORNING SAID IT HAS ENTERED INTO A MULTIMILLION DOLLAR PACT UNDER WHICH IT WILL SUPPLY NEW DISK SUBSTRATE PRODUCTS FOR SEAGATE'S HIGHPERFORMANCE HARD DISK DRIVES BIG BOARDLISTED CORNING LOST 3/8 TO 34 1/4 COMPUTER GIANT APPLE OF CUPERTINO CALIF IMPROVED 1 1/2 TO 50 AFTER IT ANNOUNCED THE OPENING OF A SUBSIDIARY IN MEXICO GOVERNMENT TECHNOLOGY SERVICES OF CHANTILLY VA SAID IT ENTERED INTO A RESELLER AGREEMENT WITH APPLE UNDER WHICH IT CAN SELL THE FULL LINE OF APPLE PRODUCTS TO THE FEDERAL GOVERNMENT MARKET GOVERNMENT TECHNOLOGY SERVICES ROSE 1/4 TO 8 3/4 THE HEALTHCARE SECTOR CONTINUED ITS RALLY FROM MONDAY OXFORD HEALTH PLANS MEDCO CONTAINMENT SERVICES AND PYXIS ALL MOVED HIGHER ON POSITIVE COMMENTS BY A MONTGOMERY SECURITIES ANALYST WHO REITERATED BUY RATINGS ON ALL THREE STOCKS IN ANTICIPATION OF SOLID MARCH QUARTER EARNINGS DUE OUT OVER THE NEXT WEEK OXFORD DARIEN CONN JUMPED 3 TO 38 MEDCO OF MONTVALE NJ SHOT 2 1/8 HIGHER TO 30 5/8 ON HEAVY VOLUME AND PYXIS OF SAN DIEGO GAINED 2 1/4 TO 38 1/4 US HEALTHCARE OF BLUE BELL PA LEAPED 3 TO 43 1/2 SALOMON BROTHERS ADDED THE COMPANY TO ITS RECOMMENDED LIST YESTERDAY AND SAID HEALTH MAINTENANCE ORGANIZATIONS WOULD BE THE UNAMBIGUOUS WINNERS IN A MODERATE HEALTH REFORM PACKAGE 9304210016 930421 WORLD MARKETS TOKYO PRICES SINK EXTENDING LOSING STREAK LONDON STOCKS JUMP 13 ON WIDER OPTIMISM A WALL STREET JOURNAL NEWS ROUNDUP TOKYO SHARE PRICES DROPPED FOR THE THIRD SESSION IN A ROW TUMBLING 14 PARTLY FROM THE YEN'S SURGE TO NEW HIGHS IN FOREIGNEXCHANGE DEALINGS BUT IN LONDON STOCKS JUMPED 13 PROPELLED BY OPTIMISM ABOUT THE PACE OF BRITAIN'S ECONOMIC RECOVERY AND BY A REBOUND IN RECENTLY BATTERED SECTORS IN TOKYO THE NIKKEI 225STOCK INDEX WHICH FELL 18552 POINTS MONDAY SANK 28391 TO 1982843 ITS FIRST FINISH BELOW 20000 IN MORE THAN A WEEK FIRST SECTION VOLUME WAS ESTIMATED AT 430 MILLION SHARES UP FROM 3618 MILLION SHARES A DAY EARLIER DECLINING ISSUES OUTNUMBERED ADVANCING ISSUES 638401 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRST SECTION ISSUES WHICH LOST 1153 POINTS MONDAY DECLINED 1023 TO 154334 IN TOKYO WEDNESDAY THE NIKKEI INDEX FELL 5742 POINTS TO END THE MORNING SESSION AT 1977101 THE YEN'S CONTINUING RISE PROMPTED STOCK MARKET PARTICIPANTS TO DUMP EXPORTERS' SHARES BECAUSE OF FEARS THE JAPANESE CURRENCY'S ADVANCE WILL CUT INTO THEIR EARNINGS BUT COMPANIES THAT STAND TO GAIN FROM THE YEN'S CLIMB INCLUDING OIL AND ELECTRIC POWER COMPANIES AND TRADING HOUSES ENDED HIGHER DESPITE THE NIKKEI'S RETREAT OF MORE THAN 800 POINTS SINCE LAST THURSDAY PARTICIPANTS REMAINED BULLISH ON THE BELIEF THAT DECLINES ARE LIMITED AND THAT THE MUCHNEEDED CORRECTION IS SETTING THE STAGE FOR FURTHER GAINS YET THE YEN REMAINED A WILD CARD PROMPTING CAUTION AMONG SOME INVESTORS AFTER AN INITIAL BOUT OF INDEXLINKED ARBITRAGE SELLING AT TUESDAY'S OPENING PUSHED THE NIKKEI BELOW 20000 BARGAINHUNTING BY INDIVIDUALS DEALERS PUBLIC PENSION FUNDS AND INSTITUTIONAL INVESTORS QUICKLY LIFTED THE INDEX ABOVE 20300 HELPED BY THE DOLLAR'S STABILITY BUT EARLYAFTERNOON COMMENTS BY A EUROPEAN COMMUNITY OFFICIAL IN TOKYO THAT THE YEN'S APPRECIATION WAS WELCOME IN HELPING REDUCE THE JAPANEC TRADE IMBALANCE SET OFF A NEW ROUND OF YEN BUYING AMID GROWING CONFIDENCE THAT MAJOR INDUSTRIAL NATIONS WON'T LAUNCH COORDINATED EFFORTS TO CURB THE JAPANESE CURRENCY'S ADVANCE THE INDIVIDUAL INVESTORS WHO BOUGHT SHARES IN THE MORNING UNLOADED THEIR HOLDINGS IN LATEAFTERNOON DEALINGS AND THE NIKKEI LOST ABOUT 300 POINTS IN THE FINAL HALFHOUR IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX CLIMBED 261 POINTS TO 28561 TOPPING A PERCEIVED BARRIER OF 2850 THE FT 30STOCK INDEX ADVANCED 163 POINTS TO 22249 VOLUME WAS 5434 MILLION SHARES UP FROM 4618 MILLION SHARES A DAY EARLIER LONDON'S GAINS FOLLOWING A WEEK OF INSIPID TRADING WERE LOGGED ACROSS THE BOARD DESPITE A WEAK OPENING ON WALL STREET AS MARKET PLAYERS FOCUSED ON BRITISH ECONOMIC PROSPECTS THE RALLY WAS SPARKED BY A REPORT BY THE CONFEDERATION OF BRITISH INDUSTRY THAT RETAIL SALES WERE AT THE HIGHEST LEVEL IN 16 MONTHS AND WAS FUELED BY STRONG CORPORATE EARNINGS REPORTS AND COMMENTS ABOUT FIRSTQUARTER CONDITIONS DRUG STOCKS RALLIED THE BANKING AND FINANCIAL SECTOR ALSO SHOWED STRENGTH AND RETAILERS GAINED IN FRANKFURT SHARE PRICES CLOSED MIXED THOUGH THE DAX 30STOCK INDEX DECLINED 619 POINTS TO 168711 NEAR THE DAY'S LOW AS THE TREND FOR EUROPEAN INTEREST RATES APPEARS TO BE FOR MORE DECREASES THE STOCK MARKET'S LACKLUSTER PERFORMANCE SURPRISED SOME PARTICIPANTS THOUGH CONTRIBUTING FACTORS WERE THE DOLLAR'S WEAKNESS AND SOME DISAPPOINTING CORPORATE NEWS SUCH AS EARNINGS PARIS STOCKS ENDED LOWER FOR THE FIFTH CONSECUTIVE SESSION AS THE MARKET SHRUGGED OFF THE PREVIOUS DAY'S INTERESTRATE CUTS BY FRANCE'S CENTRAL BANK AND GAVE WAY TO SOME PROFITTAKING IN MILAN INVESTORS' EUPHORIA WAS TEMPERED FOLLOWING ITALIAN VOTERS' DECISION TO REFORM THE POLITICAL SYSTEM AND STOCK PRICES ENDED MIXED IN MADRID SHARES FELL ON PROFITTAKING FOLLOWING THE PREVIOUS SESSION'S SHARP GAINS STOCKHOLM EQUITIES ROSE ON STRENGTH IN THE PHARMACEUTICAL SECTOR AND LOWER SWEDISH INTEREST RATES IN SYDNEY STOCKS ROSE ON RENEWED INTEREST IN BANKING ISSUES AND ON THE AUSTRALIAN GOVERNMENT'S DECISION TO ALLOW ANY SINGLE FOREIGN INVESTOR TO HOLD AS MUCH AS 25 OF PUBLISHERS OF MASSCIRCULATION NEWSPAPERS AND TO ALLOW TOTAL FOREIGN OWNERSHIP OF UP TO 30 THE GOVERNMENT PREVIOUSLY FAVORED KEEPING AN INDIVIDUAL FOREIGN STAKE BELOW 15 AND TOTAL FOREIGN OWNERSHIP BELOW 25 HONG KONG SHARES LOST GROUND AS CAUTIOUS PARTICIPANTS SOLD POSITIONS AHEAD OF TOMORROW'S SINOBRITISH TALKS ON THE BRITISH COLONY'S FUTURE GOVERNANCE SINGAPORE STOCKS EASED IN A CONSOLIDATION THAT ENDED FOUR SESSIONS OF RECORDBREAKING GAINS SEOUL STOCKS SLIPPED AS SENTIMENT TURNED CAUTIOUS ABOUT A POTENTIALLY OVERHEATING MARKET TAIPEI PRICES SANK PUSHED DOWN BY HEAVY SELLING PRESSURE ON FINANCIAL FIRMS' STOCKS MANILA EQUITIES' DECLINES CAME ON PROFITTAKING WELLINGTON SHARES GAINED ON OVERSEAS DEMAND FOR FORESTRY BLUE CHIPS AMONG CORPORATE DEVELOPMENTS IN TOKYO MARUBENI FELL 5 YEN TO 483 YEN 435 THE TRADING COMPANY EXPECTS TO POST A ONETIME LOSS OF MORE THAN 40 BILLION YEN 3599 MILLION AGAINST RESULTS FOR THE YEAR ENDED MARCH 31 THE SPECIAL ITEMS ARE RELATED TO RESTRUCTURING COSTS AND LOSSES ON SECURITIES HOLDINGS MARUBENI SAID THAT IT HAS COVERED THE DEFICIT THROUGH SALES OF ITS REAL ESTATE AND SECURITIES HOLDINGS AND THAT IT IS LEAVING UNCHANGED ITS NOVEMBER FORECAST FOR AN ANNUAL UNCONSOLIDATED PRETAX PROFIT DROP OF 14 TO 33 BILLION YEN FROM A YEAR EARLIER IN LONDON SMITHKLINE BEECHAM GAINED 12 PENCE OR 28 TO 444 PENCE 685 THE DRUG COMPANY'S FIRSTQUARTER PRETAX PROFIT ROSE 12 TO 306 MILLION 4719 MILLION AS SALES STRENGTHENED IN BRITAIN THE US AND JAPAN THE DIVIDEND WAS BOOSTED 22 TO 253 PENCE A SHARE SMITHKLINE PREDICTED STRONG GROWTH DESPITE A CHALLENGING ENVIRONMENT FOR THE PHARMACEUTICAL INDUSTRY IN FRANKFURT THYSSEN FELL 140 MARKS TO 17850 MARKS 11171 CITING GERMANY'S RECESSION AND STEEL INDUSTRY WOES AS WELL AS EUROPE'S STAGNANT ECONOMY THE INDUSTRIAL COMPANY SAID ITS EARNINGS CLEARLY WORSENED IN ITS FISCAL FIRST HALF ENDED MARCH 31 AND SALES FELL 8 TO 164 BILLION MARKS 1026 BILLION THYSSEN CUT ALMOST 5 OF ITS WORLDWIDE WORK FORCE TO 141000 IN ITS FIRST HALF IN A BID TO CUT COSTS AND INCREASE PRODUCTIVITY HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX CALCULATED IN LOCAL CURRENCIES IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9304210015 930421 ADVERTISING ADVERTISERS SEEK TO SAVE BRANDS FROM PRICE CUTS BY LAURA BIRD STAFF REPORTER OF THE WALL STREET JOURNAL THIS IS THE ERA OF THE BATTERED BRAND A TIME WHEN CONSUMERS AND WALL STREET INVESTORS ALIKE HAVE CONCLUDED THAT A HOUSEHOLD NAME IS WORTH A LOT LESS THAN IT ONCE WAS AS WORLDCLASS ADVERTISERS LIKE MARLBOROS AND PAMPERS RESORT TO A NEW ROUND OF PRICE CUTS TO COUNTER PRIVATE LABELS TWO UNKIND QUESTIONS HAVE EMERGED WHERE DID MADISON AVENUE GO WRONG AND WHAT MUST IT DO TO SET THINGS RIGHT AD AGENCIES AFTER ALL SPENT BILLIONS OF DOLLARS OF THEIR CLIENTS' MONEY TO BUILD CONSUMER LOYALTY AND SLICK IMAGERY FOR A PLETHORA OF PACKAGED PRODUCTS AND NOW IN MANY CASES ARE LOSING SALES TO UNKNOWN LABELS THAT BARELY ADVERTISE AT ALL THAT COULD RAISE NEW QUESTIONS ABOUT THE VALUE OF ADVERTISING HOW MUCH CLIENTS SHOULD BE SPENDING ON IT AND WHAT MESSAGES SHOULD BE USED TO REACH CONSUMERS WHO ARE INCREASINGLY MORE SKEPTICAL ABOUT THE VALUE OF A BRAND NAME THIS IS WHERE ADVERTISERS SHOULD BE GOING TO THEIR AGENCIES AND SAYING YOU WANT TO PROVE HOW VALUABLE ADVERTISING IS HERE'S THE WORLD'S GREATEST OPPORTUNITY' SAYS MINER RAYMOND A CINCINNATI CONSULTANT AND FORMER PROCTER & GAMBLE CO AD EXECUTIVE COMPANIES LIKE PHILIP MORRIS COS AND PROCTER & GAMBLE OPERATE ON THE ABIDING BELIEF THAT THE INTANGIBLE EQUITY IN BRANDED GOODS WILL COMMAND HIGHER PRICES THAN NONAME PRODUCTS WHEN THEY RESORT TO CUTTING PRICES TO COMPETE WITH LOWLY STORE LABELS ONE MIGHT REASONABLY CONCLUDE THAT SOME OF WHAT THEY SPENT ON ADVERTISING WAS A BAD INVESTMENT MADISON AVENUE IS MOVING QUICKLY TO NIP THAT NOTION IN THE BUD BUT EVEN SOME ADVERTISING INSIDERS ADMIT THAT SOME THINGS WILL HAVE TO CHANGE CONSUMERS' PERSISTENT PREOCCUPATION WITH VALUE PRICING MEANS A CERTAIN SPECIES OF ADVERTISING COULD BE BOUND FOR THE ENDANGERED LIST THE KIND THAT SPENDS MORE TIME FLATTERING THE CUSTOMER AND PORTRAYING HIS LUSCIOUS LIFESTYLE THAN IT DOES SHOWING THE PRODUCT AND ITS BENEFITS ONE RECENT EXAMPLE THE TASTER'S CHOICE SOAP OPERA OF TWO FLIRTATIOUS CAFFEINEFIENDS IS SAID BY ITS MAKER TO BE A GREAT BOON TO SALES BUT SOME AD EXECUTIVES SUSPECT THAT TYPE OF PITCH WILL BE AMONG THE LEAST EFFECTIVE IN BLUNTING THE INROADS OF CHEAPER COMPETITORS MORE SUCCESSFUL IN THIS ENVIRONMENT THEY BELIEVE WILL BE ADVERTISING THAT EMPHASIZES BRANDNAME MANUFACTURERS' LOYALTY TO CONSUMERS AND THEIR CUSTOMERS' LOYALTY TO THEM AS A WAY OF ENCOURAGING MORE OF THE SAME SUCH ADS ARE LIKELY TO BORROW A PAGE FROM GENERAL MOTORS CORP'S SATURN WHICH ISN'T EXACTLY A PACKAGED GOOD BUT IS WIDELY REGARDED TO BE A GOLD STANDARD IN THIS AREA IN LOVING SUNLIT DETAIL TELEVISION ADS FOR THE NEW CAR QUOTE THE LETTERS WRITTEN BY CUSTOMERS WHO ARE EAGERLY WAITING FOR THEIR NEW SATURNS TO ROLL OFF THE ASSEMBLY LINE COMMERCIALS FOR A VARIETY OF PRODUCTS AND SERVICES HAVE ALREADY BEGUN MINING THIS AREA TROTTING OUT THE TESTIMONIALS OF THEIR CUSTOMERS AND EMPLOYEES A NEW SNAPPLE CAMPAIGN QUOTES FAN LETTERS SPOTS FOR THE REGIONAL BEER RAINIER PRESENT CUSTOMER MONOLOGUES AND EVEN AN AD FOR PROCTER & GAMBLE'S CASCADE DISHWASHER DETERGENT HAS A THANKFUL MOTHER READING HER LETTER TO THE COMPANY EXECUTIVES ALSO POINT TO A NEW GUARANTEE PROGRAM FROM PROCTER & GAMBLE'S CREST WHICH INVOLVES CONSUMERS AND THEIR DENTISTS IN A SIXMONTH PROMOTION IF CONSUMERS AREN'T SATISFIED WITH THE RESULTS OF THEIR DENTAL EXAMINATIONS AFTER USING CREST FOR SIX MONTHS THEY GET THEIR MONEY BACK THERE ISN'T A CLIENT WHO ISN'T LOOKING AT THE ISSUE OF VALUEPERCEPTION OF THE BRAND IN THE MARKETPLACE SAYS ROY BOSTOCK CHAIRMAN OF D'ARCY MASIUS BENTON & BOWLES NEW YORK WHICH CREATES ADS FOR PHILIP MORRIS'S KRAFT GENERAL FOODS AND PROCTER & GAMBLE IN THE FALLOUT OF THE LATEST DEVELOPMENTS ADVERTISING WILL NEED TO PAY PART OF THE PRICE IN THE SHORTTERM HE SAYS PREDICTING SPENDING CUTBACKS AND ADDING THAT THE TREND SHOULD REVERSE IN 12 TO 18 MONTHS THERE WILL BE SHORTTERM REDUCTIONS IN ALL MARKETING ACTIVITIES AND THEN YOU'RE BACK TO THE BASICS SOME OBSERVERS QUESTION WHETHER THE PROBLEM HAS BEEN IN THE BASICS TO BEGIN WITH FOR DECADES AGENCIES AND CLIENTS HAVE FUNDAMENTALLY MISUNDERSTOOD ADVERTISING'S MOST IMPORTANT TASK CONTENDS LARRY LIGHT A MARKETING CONSULTANT IN STAMFORD CONN AND A FORMER TOP EXECUTIVE AT THE OLD TED BATES ADVERTISING AGENCY MOST ADS AIM PRIMARILY AT LURING NEW SALES PROSPECTS HE SAYS YET HE ARGUES THAT ADVERTISING'S MOST IMPORTANT AUDIENCE SHOULD BE PEOPLE WHO ALREADY USE THE PRODUCT MR LIGHT IS PRESENTING EVIDENCE TO SUPPORT HIS THEORY AT THE ANNUAL CONVENTION OF THE AMERICAN ASSOCIATION OF ADVERTISING AGENCIES CONVENTION IN LAGUNA NIGUEL TOMORROW HE IS CHAIRMAN OF THE COALITION FOR BRAND EQUITY A CROSSINDUSTRY GROUP THAT HAS COMPILED AND ANALYZED RESEARCH TO DETERMINE HOW MARKETERS CAN PROTECT THEIR BRANDS' ECONOMIC VALUE MR LIGHT POSITS THAT ON AVERAGE 35 TO 45 OF CUSTOMERS CHOOSE SOMETHING OTHER THAN THEIR FAVORITE BRANDS ON A GIVEN SHOPPING TRIP NOT BECAUSE OF DISAPPOINTMENT BUT JUST BECAUSE OF HUMAN NATURE AND THAT'S WHERE ADVERTISING COMES IN ADVERTISING HAS AN IMPORTANT ROLE IN REINFORCING THE PURCHASE EXPERIENCE HE SAYS AND THE REINFORCEMENT ROLE HAS BEEN FORGOTTEN HOW ELSE TO EXPLAIN THIS CURIOUS FINDING THE MORE A COMPANY ADVERTISES THE HIGHER CONSUMERS RATE ITS QUALITY MR LIGHT FOUND IN ANALYZING COMPANY DATA COMPILED BY THE STRATEGIC PLANNING INSTITUTE IN CAMBRIDGE MASS ADS SHOULD WORK HARDER ON CULTIVATING THE LOYALTY OF EXISTING CONSUMERS MR LIGHT CONCLUDES BECAUSE OVER TIME LOYAL CONSUMERS WILL USE MORE OF A PRODUCT AND BECOME WILLING TO SPEND A LITTLE MORE FOR IT IT COSTS FOUR TO SIX TIMES MORE TO GET A NEW CUSTOMER THAN TO RETAIN AN OLD ONE MR LIGHT CONCLUDES ALL CUSTOMERS ALL SALES AREN'T CREATED EQUAL IN OTHER QUARTERS ON MADISON AVENUE HOWEVER EXECUTIVES HASTEN TO POINT OUT THAT THEIR CLIENTS BEAR SOME OF THE BLAME FOR WHAT AILS NATIONAL BRANDS THESE DAYS TOO FEW PRODUCT INNOVATIONS TOO MANY COUPONS THAT GOT SOME CONSUMERS FIXATED ON PRICING TOO MUCH MONEY IN INCENTIVES THROWN THE WAY OF RETAILERS INSTEAD OF DEVOTED TO INVESTING IN THE BRAND ALL OF THOSE FACTORS HAVE PLAYED A ROLE TOO AD EXPERTS INSIST THAT THE EVENTS OF RECENT WEEKS FAR FROM INDICTING THEIR CRAFT POSE A WARNING ABOUT THE CONSEQUENCES OF PROLONGED CUTBACKS IN ADVERTISING AND THE OVERABUNDANCE OF FINANCIAL INCENTIVES FOR RETAILERS INDEED ADVERTISERS' INFATUATION WITH COUPONING MAY HAVE HELPED MAKE CONSUMERS PRICELOYAL INSTEAD OF BRANDLOYAL LAST YEAR US MANUFACTURERS FLOODED CONSUMERS WITH 350 BILLION COUPONS WHICH MARKED A 95 INCREASE OVER 1991 AND THE SIXTH STRAIGHT ANNUAL INCREASE ACCORDING TO PROMOTION INFORMATION MANAGEMENT IN 1992 CUSTOMERS REDEEMED ABOUT 22 OF ALL COUPONS OR 765 BILLION REPRESENTING A TOTAL OF NEARLY 5 BILLION IN SAVINGS FOR THEM AND IN REDUCED REVENUE FOR MARKETERS IF THE PRICECUTTING BY PHILIP MORRIS AND PROCTER & GAMBLE SPREADS INTO THE REST OF THE GROCERY STORE AND AD EXECUTIVES ARE CERTAIN THAT IT WILL AD PEOPLE WILL URGE CLIENTS TO SPEND MORE ON ADVERTISING NOT LESS ADVERTISERS CAN'T MUDDLE THROUGH WARNS ED MEYER CHAIRMAN AND CHIEF EXECUTIVE OF GREY ADVERTISING WHOSE NEW YORK AGENCY CREATES ADS FOR SUCH PACKAGEDGOODS ACCOUNTS AS KOOLAID FOR PHILIP MORRIS'S KRAFT GENERAL FOODS AND DOWNY AND JIF FOR PROCTER & GAMBLE THEY HAVE TO GET TO WORK QUICKLY THEY HAVE TO SET ABOUT CONVINCING CONSUMERS AGAIN THAT THERE ARE VALUES WORTH PAYING FOR I DON'T SEE CLIENTS TURNING THEIR BUSINESSES INTO COMMODITIES SAYS A HOPEFUL BOB JAMES CHAIRMAN OF INTERPUBLIC GROUP'S MCCANNERICKSON NEW YORK A LOT OF THEIR MONEY HAS BEEN DIVERTED INTO PUSH PROMOTIONS NOW THEY HAVE TO GET MORE INTO PULL ADVERTISING SOME AD EXECUTIVES SAY THAT IF ADVERTISING HAS FAILED TO CONVINCE CONSUMERS TO TAKE UP PARTICULAR BRANDS IT ISN'T ADVERTISING'S FAULT IT IS THE FAULT OF THE PRODUCTS THERE AREN'T AS MANY REASONS TO BUY AS THERE USED TO BE THEIR ARGUMENT GOES MANUFACTURERS' COSTCUTTING AND PROFITFOCUS IN THE 1980S ELIMINATED MOST OF THE SMALL INNOVATIONS THAT CONSUMERS FOUND MADE BIG BRANDS SUPERIOR TO UPSTARTS IN THE FIRST PLACE THE REASON BRANDS BECAME MEGABRANDS IS BECAUSE THEY BROUGHT SOMETHING TO THE PARTY SAYS ALVIN SCHECHTER CHAIRMAN AND CHIEF EXECUTIVE OF THE SCHECHTER GROUP A BRAND IDENTITY UNIT OF OMNICOM GROUP IVORY SOAP FLOATED IT WAS AN INNOVATION NOW THE DIFFERENCES BETWEEN NATIONAL BRANDS IF ANY ARE MARGINAL GREY'S MR MEYER SUGGESTS CLIENTS REINSPECT THE OFFERING THEY'RE MAKING FOR EACH BRAND TO MAKE SURE THERE'S ENOUGH SATISFACTION TO JUSTIFY THE PRICE IF NOT IT WON'T DO ANY GOOD TO ADVERTISE A LOT BEFORE TAKING THE NECESSARY STEPS HE SAYS AS FOR WHAT TO SAY WHILE IMPROVEMENTS ARE IN PROGRESS IN THE INTERIM THEY HAVE A DILEMMA HE ADMITS YET AD EXECUTIVES INSIST THEIR ADS SHOULDN'T PUSH A CHEESY PRICE MESSAGE IN NO SMALL PART BECAUSE BRANDED GOODS ARE NEVER GOING TO COST AS LITTLE AS STORE BRANDS INSTEAD THE BUZZWORD IS VALUE EXPERTS SAY AND RIGHT NOW THAT ATTRIBUTE BELONGS TO THE STOREBRAND COMPETITION ADVERTISERS WILL HAVE TO SPEND AGGRESSIVELY TO WIN IT BACK PEOPLE HAVE BEEN TALKING ABOUT THE CONCEPT OF VALUE FOR A LONG TIME SAYS EDWARD VICK PRESIDENT AND CHIEF EXECUTIVE OF LANDOR ASSOCIATES A BRAND IDENTITY UNIT OF YOUNG & RUBICAM BUT THE PRIVATELABEL GUYS BROUGHT THE CONCEPT TO LIFE THEY CREATED TRUE BRANDS AND PRICED THEM APPROPRIATELY WHO'S NEWS STEVEN FARELLA FORMER MEDIA DIRECTOR OF YOUNG & RUBICAM WHO RECENTLY ANNOUNCED PLANS TO FORM A MEDIABUYING CONSORTIUM OF INDEPENDENT AGENCIES WAS HIRED BY ONE OF THEM JORDAN MCGRATH CASE & TAYLOR NEW YORK AS EXECUTIVE VICE PRESIDENT OF MEDIA SERVICES A NEW POSITION 9304210014 930421 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 2 7/8 HIGH 2 3/4 LOW 2 13/16 NEAR CLOSING BID 2 7/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 305 30 TO 119 DAYS 306 120 TO 149 DAYS 307 150 TO 179 DAYS 310 180 TO 259 DAYS 315 260 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 312 30 DAYS 312 60 DAYS 313 90 DAYS CERTIFICATES OF DEPOSIT 260 ONE MONTH 265 TWO MONTHS 268 THREE MONTHS 275 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 305 THREE MONTHS 313 SIX MONTHS BANKERS ACCEPTANCES 299 30 DAYS 299 60 DAYS 3 90 DAYS 302 120 DAYS 304 150 DAYS 305 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/8 3 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 3/16 3 1/16 THREE MONTHS 3 1/4 3 1/8 FOUR MONTHS 3 5/16 3 3/16 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 INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 6 GERMANY 9 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY APRIL 19 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 282 13 WEEKS 296 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 706 60 DAYS 717 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 710 60 DAYS 720 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 9304210013 930421 BUSINESS BRIEF PHILIP MORRIS'S 1STPERIOD NET ROSE 11 BUT OUTLOOK FOR REMAINDER OF '93 IS BLEAK NEW YORK PHILIP MORRIS COS'S FIRSTQUARTER NET INCOME ROSE 11 AS STRONG CIGARETTE SALES OVERSEAS AND IMPROVING BUSINESS AT KRAFT GENERAL FOODS OFFSET GROWING TROUBLES AT THE COMPANY'S HUGE US TOBACCO BUSINESS BUT THE PROFIT OUTLOOK FOR THE REST OF THE YEAR IS BLEAK THE COMPANY'S PROFIT FOR THE NEXT NINE MONTHS COULD FALL 14 FUELED BY A FREE FALL OF AS MUCH AS 50 IN PROFIT FROM THE US TOBACCO BUSINESS AS PHILIP MORRIS EMBARKS ON A RISKY STRATEGY TO REDUCE THE PRICE OF MARLBORO CIGARETTES TO BEAT BACK PRIVATELABEL COMPETITION WALL STREET ANALYSTS EXPECT PHILIP MORRIS'S NET FOR ALL OF 1993 TO BE DOWN 10 FROM A YEAR EARLIER AS A RESULT OF ITS DECISION TO FORGO 2 BILLION IN US TOBACCO PROFITS IN AN EFFORT TO REBUILD THE MARLBORO FRANCHISE THE NEXT NINE MONTHS ARE GOING TO BE A DISASTER SAID ROY BURRY AN ANALYST WITH KIDDER PEABODY & CO IN FACT PHILIP MORRIS INCLUDED THE FOLLOWING BOLDFACED WARNING ON ITS EARNINGS RELEASE FIRSTQUARTER RESULTS SHOULD NOT BE TAKEN AS INDICATIVE OF FULLYEAR 1993 RESULTS FOR THE FIRST QUARTER PHILIP MORRIS NET ROSE TO 121 BILLION OR 138 A SHARE FROM 1 BILLION OR 120 A SHARE A YEAR EARLIER PERSHARE EARNINGS WERE UP 15 AS THE COMPANY BOUGHT BACK SOME STOCK OVER THE PAST YEAR REVENUE INCREASED 8 TO 151 BILLION FROM 14 BILLION A YEAR AGO UNDER PRESSURE FROM DISCOUNT CIGARETTES PHILIP MORRIS'S DOMESTIC TOBACCO PROFIT FELL 1 TO 1 BILLION IN THE QUARTER THE FIRST DROP EVER FOR DOMESTIC TOBACCO BUT THE RESULTS DON'T REFLECT ANY PRICE CUTS ON MARLBORO WHICH THE COMPANY DIDN'T IMPOSE UNTIL ITS ANNOUNCEMENT ON APRIL 2 THE NEED TO SHORE UP MARLBORO WAS PAINFULLY EVIDENT HOWEVER AS MARLBORO SHIPMENTS FELL 83 IN THE QUARTER COMPARED WITH THE YEARAGO PERIOD DESPITE THE COMPANY'S ATTEMPTS TO FOCUS INVESTORS ON ITS OTHER BUSINESSES DOMESTIC TOBACCO IS STILL THE MAIN GROWTH ENGINE OF THE COMPANY PROVIDING NEARLY HALF OF PHILIP MORRIS'S PROFIT LAST YEAR UNLESS YOU HAVE DECENT GROWTH OUT OF DOMESTIC TOBACCO IT ACTS AS A DAMPER TO THE OVERALL GROWTH RATE OF THE COMPANY SAID EMANUEL GOLDMAN AN ANALYST WITH PAINEWEBBER INC IN SAN FRANCISCO BUT OTHER DIVISIONS ARE DELIVERING OPERATING PROFIT IN INTERNATIONAL TOBACCO JUMPED 18 TO 675 MILLION IN THE QUARTER AT AN APPARENTLY REVITALIZED KRAFT GENERAL FOODS PROFIT WAS UP 15 TO 626 MILLION 9304210012 930421 TIME TO STOP THE IRANIAN NUKE BY KENNETH R TIMMERMAN THE GROUP OF SEVEN COUNTRIES ARE SCHEDULED TO MEET EARLY NEXT MONTH IN BONN TO DISCUSS IMPOSING A SWEEPING TRADE EMBARGO ON IRAN IF ACCEPTED IT COULD MEAN BILLIONS OF DOLLARS OF LOST BUSINESS FOR WESTERN COMPANIES BUT IT COULD ALSO HELP PREVENT ANOTHER IRAQ THE US HAS BEEN PUSHING ITS G7 PARTNERS TO IMPOSE THE EMBARGO ON HIGHTECHNOLOGY ITEMS AND MANUFACTURING GEAR BECAUSE OF IRAN'S MASSIVE PURCHASES OF DUALUSE EQUIPMENT IN THE WEST MANY OF THESE PURCHASES ARE PART OF MULTIBILLIONDOLLAR DEVELOPMENT PROJECTS SOME OF WHICH HAVE LEGITIMATE CIVILIAN APPLICATIONS BUT MUCH IF NOT MOST OF THIS EQUIPMENT IS KNOWN TO BE FUELING IRAN'S NUCLEAR WEAPONS PROGRAM AND ITS PROGRAMS FOR BALLISTIC MISSILES AND CHEMICAL AND BIOLOGICAL WEAPONS A G7 EMBARGO HOWEVER IS BY NO MEANS A CERTAINTY THE US HAS BEEN TRYING TO PERSUADE ITS PARTNERS TO CREATE A TECHNOLOGICAL CORDON SANITAIRE AROUND IRAN SINCE LAST OCTOBER WITHOUT SUCCESS AT THAT TIME A DELEGATION OF MIDLEVEL US OFFICIALS TRAVELING TO LONDON PARIS AND BONN FAILED TO CONVINCE THEM THAT US CONCERN OVER IRAN'S NONCONVENTIONAL WEAPONS PROGRAM WAS ANYTHING MORE THAN ELECTION YEAR RAZZLEDAZZLE IN FEBRUARY THE G7 WORKING GROUP ON PROLIFERATION CONTROLS MET AGAIN IN BONN TO DISCUSS THE EMBARGO CHAIRED BY THE GERMAN ECONOMICS MINISTRY WHICH PROMOTES FOREIGN TRADE AND LICENSES HIGHTECHNOLOGY EXPORTS AS DOES THE US COMMERCE DEPARTMENT THE GROUP AGAIN FAILED TO AGREE ON ANY COMMON STAND TO BLOCK IRANIAN PURCHASES OF DUALUSE GOODS AT THAT TIME THE STRONGEST RESISTANCE REPORTEDLY CAME FROM THE FRENCH WHO DO NOT DESIGNATE COUNTRIES AS POTENTIAL ENEMIES BECAUSE THEY AND THEIR EUROPEAN PARTNERS FREQUENTLY HAVE EXTENSIVE TRADE RELATIONS WITH THEM INSTEAD THEY PREFER TO ACT BEHIND THE SCENES SAYING THAT THEY ARE DOING ALL THAT IS NECESSARY TO MAKE SURE NO STRATEGIC TECHNOLOGY LEAKS THROUGH TO PROGRAMS OF PROLIFERATION CONCERN THIS POSITION HIGHLIGHTS THE BASIC PROBLEM IN MULTILATERAL NEGOTIATIONS ONE WHICH IS LIKELY TO OCCUR WITH INCREASING FREQUENCY IN THE YEARS TO COME DESPITE AMERICA'S ROLE AS THE WORLD'S ONLY SUPERPOWER IT NO LONGER WIELDS THE ECONOMIC CLOUT OR POLITICAL AND MORAL ASCENDANCY IT ENJOYED IN THE YEARS FOLLOWING WORLD WAR II COUNTRIES THAT THE US DESIGNATES AS INIMICAL TO ITS INTERESTS LIKE IRAN OFFER PROMISING MARKETS FOR HIGHTECHNOLOGY TRADE ESTABLISHING AN EMBARGO IN TODAY'S ECONOMIC CLIMATE COULD BE POLITICALLY UNFEASIBLE FOR MANY OF AMERICA'S ALLIES LAST YEAR GERMANY RACKED UP A RECORD 5 BILLION IN SALES TO IRAN AND JAPANESE SALES REACHED NEARLY 3 BILLION ITALY AND BRITAIN BOTH TOPPED THE 1 BILLION MARK WITH FRANCE NOT FAR BEHIND US SALES TO IRAN WERE DRAMATICALLY HIGHER IN 1992 THAN THEY HAD BEEN IN PREVIOUS YEARS NEARLY 600 MILLION BUT IRAN IS NO LONGER THE PREMIER MARKET FOR US INDUSTRIAL EXPORTS THAT IT HAS BECOME TO GERMANY AND JAPAN AND TO A LESSER DEGREE ITALY BRITAIN AND FRANCE SIMPLY PUT THE US HAS LESS TO LOSE FROM AN EMBARGO THE US EFFORT WITH ITS G7 PARTNERS IS CRITICAL A CAREFUL ANALYSIS OF IRANIAN PURCHASES IN THE WEST SHOWS THAT A VERY HIGH PERCENTAGE OF ADVANCED INDUSTRIAL GOODS COMPUTERS AND MACHINE TOOLS ARE BEING PURCHASED BY GOVERNMENT MANUFACTURING ENTITIES ENGAGED IN BOTH CIVILIAN AND MILITARY PROGRAMS INDEED IRAN APPEARS TO BE FOLLOWING THE PATTERN ESTABLISHED BY IRAQ IN THE MID TO LATE 1980S ESTABLISHING A BROAD MILITARYINDUSTRIAL MANUFACTURING BASE TO ENSURE INDEPENDENCE FROM FOREIGN SUPPLIERS IN THE EVENT OF FUTURE TRADE OR MILITARY EMBARGOES AS IRAQ'S EXAMPLE CLEARLY SHOWS IF THE WEST IS TO HAVE ANY HOPE OF STOPPING IRAN FROM ACQUIRING A CLANDESTINE NUCLEAR WEAPONS CAPABILITY IT MUST ACT DECISIVELY AND IN CONCERT TO STOP THE FLOW OF STRATEGIC TECHNOLOGIES TO ENTITIES IDENTIFIED WITH THAT COUNTRY'S WEAPONS PROGRAM UNFORTUNATELY THAT IS NOT HAPPENING AT A RECENT MILITARY SHOW IN ABU DHABI THE IRANIANS PUT ON AN IMPRESSIVE DISPLAY OF THEIR DOMESTIC ARMS PRODUCTION THEY SHOWED A WIDE ARRAY OF ROCKETS ARTILLERY PIECES AMMUNITION NAVAL SHIPS COMMUNICATIONS GEAR AND BALLISTIC MISSILES ALL THE EQUIPMENT USED TO MANUFACTURE THESE GOODS WAS MADE IN GERMANY JAPAN AND A FEW OTHER WESTERN COUNTRIES BY SOME OF THE SAME COMPANIES THAT BUILT UP IRAQ DURING THE BUSH YEARS THE US PREACHED NONPROLIFERATION TO ITS ALLIES WHILE PRACTICING A MISGUIDED HODGEPODGE OF COMMERCIAL GAIN AND STRATEGIC ERROR IN TRANSFERRING MASSIVE AMOUNTS OF HIGHTECH GOODS TO IRAQ AND CHINA WHILE THE CLINTONGORE TEAM PLACED NONPROLIFERATION AT THE TOP OF ITS FOREIGN POLICY AGENDA DURING THE ELECTION CAMPAIGN SO FAR IT HAS MADE NO POLICY STATEMENTS ON THE SUBJECT NOR HAS IT PROVIDED CLEAR LEADERSHIP TO THE US BUREAUCRACY LET ALONE TO ITS ALLIES ABROAD ONE REASON IS THAT EVEN AT HOME THE US IS A HOUSE DIVIDED POWERFUL INDUSTRIAL AND HIGHTECH LOBBYING INTERESTS PUSH TO SCALE BACK EXPORT CONTROLS TO IMPROVE THE COUNTRY'S TRADE BALANCE AND SAVE JOBS MR CLINTON HAS APPOINTED ONE SUCH LOBBYIST THE FORMER CHIEF EXECUTIVE OF CRAY COMPUTERS ED ROLLWAGEN AS DEPUTY SECRETARY OF THE COMMERCE DEPARTMENT IN HIS NEW POSITION HE WILL NOT ONLY OVERSEE THE PROMOTION OF US EXPORTS BUT WILL CONTROL THE SALE OF HIGHTECHNOLOGY FOR NATIONAL SECURITY REASONS WHILE AT CRAY MR ROLLWAGEN ARGUED VIGOROUSLY FOR THE SALE OF HIS COMPANY'S SUPERCOMPUTERS TO COUNTRIES SUCH AS CHINA AND INDIA DESPITE OBJECTIONS FROM THE JOINT CHIEFS OF STAFF AND FROM THE ARMS CONTROL AND DISARMAMENT AGENCY THAT THE COMPUTERS COULD AND PROBABLY WOULD BE USED FOR NUCLEARWEAPONS DEVELOPMENT EVERY TIME COMMERCE APPROVES SALES LIKE THESE AMERICA'S ALLIES ACCUSE IT OF CHOOSING THE TARGETS FOR HIGHTECH EMBARGOES TO SUIT THE NEEDS OF ITS FOREIGN TRADE BALANCE IF THE US IS REALLY SERIOUS ABOUT PROLIFERATION THEY SAY IT SHOULD BEGIN RESTRICTING THE SALE OF COMPUTERS AND ADVANCED MACHINE TOOLS TO CHINA WHICH HAS BEEN SELLING BALLISTIC MISSILES TO PAKISTAN IRAN SYRIA LIBYA AND SAUDI ARABIA TO SHOW THE G7 PARTNERS THAT IT IS TRULY SERIOUS WHEN ADVOCATING A HIGHTECH EMBARGO ON IRAN THE US NEEDS TO DEVELOP A POLICY AND THEN DEMONSTRATE CONSISTENCY IN CARRYING IT OUT IT SHOULD ALSO REEXAMINE ITS EXPORT POLICY TO CHINA WHOSE PROLIFERATION RECORD IS SECOND TO NONE RESTRICTIONS ON HIGHTECH SALES TO CHINA A MARKET WHERE AMERICA HAS MUCH TO LOSE WOULD MAKE EUROPE STAND UP AND TAKE NOTICE WHEN ADVOCATING AN EMBARGO ON IRAN MR TIMMERMAN IS THE AUTHOR OF THE DEATH LOBBY HOW THE WEST ARMED IRAQ PUBLISHED BY HOUGHTON MIFFLIN IN 1991 9304210011 930421 INTERNATIONAL SUBWAY LOAN LIKELY TO REVIVE CANARY WHARF BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON A LOAN TO BUILD FURTHER TRANSPORTATION LINKS TO CANARY WHARF IS LIKELY TO INJECT NEW LIFE INTO THE TROUBLED COMMERCIAL PROPERTY DEVELOPMENT ON LONDON'S OUTSKIRTS RUMORS OF NEW TENANTS SPREAD AFTER WORD LATE MONDAY THAT THE EUROPEAN INVESTMENT BANK WOULD LEND 98 MILLION 151 MILLION TO FINANCE AN EXTENSION OF THE LONDON SUBWAY SYSTEM'S JUBILEE LINE MANY COMPANIES HAVE SAID SUCH AN EXTENSION WAS A REQUIREMENT BEFORE THEY WOULD CONSIDER MOVING TO CANARY WHARF MIRROR GROUP NEWSPAPERS LTD ONCE OWNED BY ROBERT MAXWELL IS LIKELY TO MOVE TO CANARY WHARF OVER THE SUMMER PEOPLE AT THE COMPANY SAID YESTERDAY WORK ON CANARY WHARF HAS BEEN LARGELY STOPPED SINCE THE PROJECT WENT INTO RECEIVERSHIP LAST MAY AFTER ITS CREDITOR BALKED AT LENDING TORONTOBASED OLYMPIA & YORK DEVELOPMENTS LTD AN ADDITIONAL 350 MILLION TO COMPLETE CONSTRUCTION INTEREST IN THE SITE HAS PICKED UP IN RECENT MONTHS THE LONDON OFFICE OF CREDIT SUISSE FIRST BOSTON MOVED IN LAST MONTH CANARY WHARF IS ALREADY THE EUROPEAN HEADQUARTERS OF THE US INVESTMENT BANK MORGAN STANLEY GROUP INC AND HOME TO NEWSPAPER PUBLISHER TELEGRAPH PLC MOST OF CANARY WHARF NOW IS BEING FINANCED BY AN INTERNATIONAL SYNDICATE LED BY LLOYDS BANK PLC COURTAPPOINTED ADMINISTRATORS FROM THE ACCOUNTING FIRM ERNST & YOUNG ARE SEEKING A BUYER OR INVESTORS TO HELP FINISH THE PROJECT WHICH IS EUROPE'S LARGEST OFFICE DEVELOPMENT 9304210010 930421 DIVIDEND NEWS PACIFIC ENTERPRISES TO RESUME DIVIDENDS AFTER SALE OF SHARES LOS ANGELES PACIFIC ENTERPRISES SAID IT WILL RESUME DIVIDEND PAYMENTS AT AN INITIAL ANNUAL RATE OF 120 A SHARE AS SOON AS THE COMPANY COMPLETES THE PLANNED SALE OF SEVEN MILLION COMMON SHARES DIVIDENDS WERE SUSPENDED IN FEBRUARY 1992 AFTER THE ANNUAL RATE HAD BEEN SLASHED THE PRECEDING JUNE TO 176 FROM 348 PLANS TO RESUME DIVIDENDS WERE DISCLOSED LAST MONTH IN THE UTILITY HOLDING COMPANY'S ANNUAL REPORT TO SHAREHOLDERS ALTHOUGH THE RATE WASN'T GIVEN PACIFIC ENTERPRISES SAID IT EXPECTS THE STOCK SALE TO TAKE PLACE SOMETIME THIS SUMMER ALTHOUGH A PRICE WASN'T SPECIFIED THE OFFERING WOULD RAISE ROUGHLY 171 MILLION IF IT TOOK PLACE AT THE CURRENT MARKET PRICE THE STOCK CLOSED YESTERDAY AT 24375 DOWN 375 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE PACIFIC ENTERPRISES SAID PROCEEDS WOULD HELP TO REPAY MOST OF THE COMPANY'S NONUTILITY PARENT DEBT EXCLUDING DEBT RELATED TO EMPLOYEE BENEFIT PLANS THE COMPANY PLANS TO DECLARE A QUARTERLY CASH DIVIDEND OF 30 CENTS CONCURRENT WITH COMPLETION OF THE SEVENMILLIONSHARE STOCK SALE A STATEMENT FOR THE OFFERING WAS FILED YESTERDAY WITH THE SECURITIES AND EXCHANGE COMMISSION PACIFIC ENTERPRISES SAID IT WILL GRANT THE UNDERWRITERS AN OPTION TO PURCHASE AS MANY AS AN ADDITIONAL ONE MILLION SHARES TO COVER OVERALLOTMENTS 9304210009 930421 MARKETING & MEDIA ADVANCE'S CONDE NAST FOLDS HG MAGAZINE HAVING BOUGHT RIVAL NEW YORK CONDE NAST PUBLICATIONS INC IS CLOSING HG THE VENERABLE HOMEDECORATING MAGAZINE IT HAS PUBLISHED FOR ALMOST EIGHT DECADES IN FAVOR OF THE TONY YOUNGER RIVAL ARCHITECTURAL DIGEST A TITLE IT FORMALLY ACQUIRED ONLY YESTERDAY THE MOVE TO FOLD THE FORMER HOUSE AND GARDEN AS IT WAS KNOWN WHEN CONDE NAST ACQUIRED IT IN 1915 AND UNTIL IT WAS RENAMED HG IN 1987 WAS UNEXPECTED IT CAME YESTERDAY AS CONDE NAST COMPLETED ITS ACQUISITION OF KNAPP COMMUNICATIONS CORP PUBLISHER OF ARCHITECTURAL DIGEST AND BON APPETIT MAGAZINES HG'S CLOSING SLATED AFTER THE MAGAZINE PUTS OUT ITS JULY ISSUE SIGNALS THE DIFFICULTY EVEN THE LARGEST PUBLISHERS HAVE HAD IN THE ONCEBOOMING CATEGORY FOR STYLISH HOME MAGAZINES AIMED AT AFFLUENT READERS WHEN CONDE NAST A UNIT OF THE NEWHOUSE FAMILY'S CLOSELY HELD ADVANCE PUBLICATIONS INC RECENTLY AGREED TO ACQUIRE ARCHITECTURAL DIGEST POSSIBLY THE MOST ELITE HOME MAGAZINE IT HAD HOPED TO PUBLISH BOTH MONTHLY TITLES SIDE BY SIDE BUT CONDE NAST EXECUTIVES SAID IT LATER BECAME CLEAR THAT BOTH RIVALS COULDN'T SURVIVE THERE IS CONSIDERABLE REDUNDANCY BETWEEN HG AND ARCHITECTURAL DIGEST AND THE REALITY OF PUBLISHING IN TODAY'S MARKET LED US TO CONCLUDE IT WAS NOT FEASIBLE TO CONTINUE BOTH CONDE NAST CHAIRMAN SI NEWHOUSE JR SAID IN A STATEMENT HG SUBSCRIBERS WILL RECEIVE COPIES OF ARCHITECTURAL DIGEST AFTER THE JULY ISSUE IN PICKING THE KNAPP TITLE OVER HG WHICH HAD GONE THROUGH SEVERAL FACELIFTS CONDE NAST WENT WITH THE MONEY ARCHITECTURAL DIGEST FOUNDED IN 1920 BUT BROADENED INTO A LAVISH CONSUMER MAGAZINE ONLY IN THE 1970S SELLS AT 5 A COPY A DOLLAR MORE THAN HG AND SELLS MORE COPIES ON THE NEWSSTAND AND ARCHITECTURAL DIGEST HAD TOTAL AD REVENUE OF 33 MILLION LAST YEAR WHILE HG TRAILED WITH 23 MILLION ACCORDING TO THE PUBLISHERS INFORMATION BUREAU BOTH TITLES WERE DOWN IN AD PAGES IN 1992 HOWEVER ARCHITECTURAL DIGEST LOST 10 AND HG 20 ARCHITECTURAL DIGEST'S EDITOR IN CHIEF PAIGE RENSE WILL STAY IN PLACE WHILE HG EDITOR NANCY NOVOGROD WILL BECOME EDITOR OF SPECIAL BOOK PROJECTS AT CONDE NAST 9304210008 930421 TECHNOLOGY BRIEF DIGITAL EQUIPMENT CORP COMPUTER MAKER UNVEILS FAST WORKSTATION MODELS DIGITAL EQUIPMENT CORP AS EXPECTED UNVEILED WHAT ANALYSTS SAY ARE THE INDUSTRY'S FASTEST COMPUTER WORKSTATIONS GIVING IT A BOOST IN A COMPETITIVE MARKET DIGITAL BASED IN MAYNARD MASS CURRENTLY RANKS A DISTANT THIRD IN WORKSTATION SALES AFTER SUN MICROSYSTEMS INC MOUNTAIN VIEW CALIF AND HEWLETTPACKARD CO PALO ALTO CALIF THE NEW MODELS WHICH ARE BASED ON DIGITAL'S NEW ALPHA AXP CHIP RANGE IN PRICE FROM 4995 FOR A DESKTOP UNIT TO 69995 FOR THE MOST POWERFUL MODEL WORKSTATIONS TYPICALLY USED BY SCIENTISTS ENGINEERS AND DESIGNERS HAVE MORE SPEED AND DIFFERENT OPERATING SOFTWARE THAN PERSONAL COMPUTERS 9304210007 930421 FINANCING BUSINESS BIG O TIRES INC BIG O TIRES INC SAID IT PLANS TO WITHDRAW A PROPOSED PUBLIC OFFERING OF 13 MILLION COMMON SHARES A COMPANY SPOKESMAN SAID THE ENGLEWOOD COLO FRANCHISER OF RETAIL TIRE STORES IS WITHDRAWING THE OFFERING BECAUSE OF MARKET CONDITIONS SINCE THE FILING FOR THE OFFERING ON MARCH 15 HE EXPLAINED THE COMPANY'S STOCK HAD DROPPED FROM 12625 TO AS LOW AS 10875 A SHARE BIG O CLOSED YESTERDAY AT 1225 DOWN 625 CENTS IN NATIONAL OVERTHECOUNTER TRADING THE COMPANY HAD PLANNED TO USE PROCEEDS TO FINANCE ITS EXPANSION AT RECENT PRICES HOWEVER THE OFFERING WOULDN'T HAVE GENERATED ENOUGH PROCEEDS TO MEET THE EXPANSION NEEDS 9304210006 930421 BUSINESS BRIEF RAYCHEM CORP NET INCOME PLUMMETED 92 IN THE FISCAL THIRD QUARTER HURT BY CHARGES TO COVER PLANT CLOSURES AND SLUGGISH MARKETS FOR SOME PRODUCTS RAYCHEM CORP SAW EARNINGS FALL 92 IN ITS THIRD QUARTER ENDED MARCH 31 RAYCHEM MENLO PARK CALIF SAID IT POSTED NET INCOME OF 400000 OR ONE CENT A SHARE COMPARED WITH YEAREARLIER NET OF 54 MILLION OR 13 CENTS A SHARE HOWEVER THE YEAREARLIER QUARTER WAS BOOSTED BY ONETIME GAINS FROM THE SALE OF LAND AND STOCK RAYCHEM SAID ITS CONTINUING PRETAX INCOME EXCLUDING SPECIAL ITEMS AND LOSSES CONNECTED TO ITS FIBEROPTICS UNIT WAS 30 MILLION IN THE QUARTER COMPARED WITH 10 MILLION LAST YEAR REVENUE IN THE FISCAL THIRD QUARTER ROSE 3 TO 324 MILLION FROM 3135 MILLION RAYCHEM HAS INTERESTS IN TELECOMMUNICATIONS ELECTRONICS AND AEROSPACE 9304210005 930421 MARKETING & MEDIA JOURNAL REPORTERS WIN WRITING AWARDS FROM TWO GROUPS WASHINGTON WALL STREET JOURNAL REPORTERS WON FOUR WRITING AWARDS IN THE ANNUAL CONTEST SPONSORED BY THE NATIONAL ASSOCIATION OF AGRICULTURAL JOURNALISTS AND TWO AWARDS IN THE COMPUTER PRESS AWARDS A TEAM OF WALL STREET JOURNAL REPORTERS WON FIRST PLACE IN THE SPECIAL PROJECTS CATEGORY FOR NONMEMBERS OF THE ASSOCIATION THE PAGE ONE STORY AND RELATED PACKAGE AMBER WAVES SHOWED HOW THE GLOBALIZATION OF AGRICULTURE IS REDUCING THE WORLD'S DEPENDENCE ON AMERICAN CROPS SCOTT KILMAN A REPORTER IN THE JOURNAL'S CHICAGO BUREAU WON A FIRST PLACE AWARD FOR A NEWS STORY STUCK IN LOW DESCRIBING THE BANK LENDING CLIMATE IN BLOOMFIELD IOWA AND SHOWING THAT FARMERS WEREN'T REINVESTING PROFITS IN THEIR FARMING OPERATIONS BRUCE INGERSOLL A REPORTER IN THE WASHINGTON BUREAU WON A FIRST PLACE AWARD FOR FEATURE WRITING FOR HIS PROFILE OF AN AGRICULTURE DEPARTMENT COUNTY AGENT IN A POSH CONNECTICUT SUBURB HE ALSO WON A THIRD PLACE FEATURE WRITING AWARD FOR A STORY ON THE GINSENG CROP IN WISCONSIN JOHN WILKE A REPORTER IN THE BOSTON BUREAU WAS THE FIRST PLACE WINNER FOR A NEWS STORY IN A GENERAL INTEREST PUBLICATION IN THE COMPUTER PRESS AWARDS FOR AN ARTICLE ON THE SPOT EXPLORING THE PRESSURES ON DIGITAL EQUIPMENT CORP PRESIDENT KENNETH H OLSEN WHO LATER RESIGNED AND MICHAEL ALLEN DEPUTY BUREAU CHIEF IN THE DALLAS BUREAU WAS A RUNNERUP FOR A FEATURE IN A GENERAL INTEREST PUBLICATION FOR AN ARTICLE BOTTOM FISHING DESCRIBING HOW EXECUTIVES AT COMPAQ COMPUTER CORP WENT BEHIND THE CHIEF EXECUTIVE TO DEVELOP A LINE OF LOWPRICED PERSONAL COMPUTERS THE WALL STREET JOURNAL IS PUBLISHED BY DOW JONES & CO 9304210004 930421 WHO'S NEWS COCACOLA ENTERPRISES NAMES COKE'S IVESTER CHAIRMAN OF BOTTLER ATLANTA COCACOLA ENTERPRISES INC NAMED M DOUGLAS IVESTER A TOP EXECUTIVE OF COCACOLA CO AS CHAIRMAN OF THE BIG BOTTLING COMPANY MR IVESTER 45 YEARS OLD SUCCEEDS DONALD R KEOUGH WHO RETIRED FROM THE BOARD OF COCACOLA ENTERPRISES ON MONDAY LAST WEEK MR KEOUGH 66 RETIRED AS PRESIDENT AND CHIEF OPERATING OFFICER OF COCACOLA CO AND WAS NAMED CHAIRMAN OF ALLEN & CO A NEW YORK INVESTMENT BANKER COKE HOLDS ABOUT A 44 STAKE IN COCACOLA ENTERPRISES THE SELECTION OF MR IVESTER AS CHAIRMAN OF THE BOTTLING COMPANY WASN'T A SURPRISE MR IVESTER IS AN EXECUTIVE VICE PRESIDENT AT COKE AND RESPONSIBLE FOR ITS OPERATIONS IN NORTH AMERICA WHERE COCACOLA ENTERPRISES OPERATES IN ADDITION MR IVESTER WAS INSTRUMENTAL IN BOTH THE CREATION OF THE BOTTLING COMPANY SEVERAL YEARS AGO AND THE PUBLIC SALE OF A PORTION OF IT COCACOLA ENTERPRISES ALSO SAID SK JOHNSTON JR ITS 60YEAROLD VICE CHAIRMAN AND CHIEF EXECUTIVE WAS ELECTED CHAIRMAN OF THE EXECUTIVE COMMITTEE OF THE BOARD MR KEOUGH ALSO HELD THAT POST 9304210003 930421 REVIEW OF ROYAL TRUSTCO OPERATIONS SOUGHT BY HOLDERS BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO A SMALL GROUP OF CANADIAN SHAREHOLDERS ARE SHEDDING THEIR USUAL QUIESCENT ATTITUDE TO CHALLENGE THE CORPORATE EMPIRE BUILT BY TORONTO FINANCIERS PETER AND EDWARD BRONFMAN THE GROUP OF INVESTORS IN ROYAL TRUSTCO LTD A TROUBLED FINANCIAL SERVICES CONCERN WHICH IS 48CONTROLLED BY THE BRONFMANS OR THE SOCALLED EDPER EMPIRE SAID THEY ARE FORMING A COMMITTEE TO FINANCE AND CONDUCT AN INDEPENDENT REVIEW OF ROYAL TRUSTCO'S OPERATIONS AND THE AGREEMENT BY THE EDPER GROUP TO SELL THE BULK OF ROYAL TRUSTCO'S REMAINING OPERATIONS TO ROYAL BANK OF CANADA THE COMMITTEE WILL BE ACTIVELY REVIEWING ALL LEGAL AVENUES AVAILABLE TO IT TO ENSURE THAT THE INTERESTS OF MINORITY PUBLIC SECURITY HOLDERS OF THE COMPANY ARE PROTECTED SAID RAYMOND BUDD THE SHAREHOLDER WHO FORMED THE GROUP THE GROUP DIDN'T DISCLOSE HOW MANY SHAREHOLDERS ARE A PART OF IT OR THE AMOUNT OF ITS STAKE IN ROYAL TRUSTCO ERIC APPS A TORONTO LAWYER WHO IS THE GROUP'S COUNSEL SAID THE COMMITTEE WILL SEEK TO ESTABLISH WHETHER OR NOT THE ROYAL BANK SALE IS IN THE BEST INTEREST OF SHAREHOLDERS AND MAY SEEK TO RECOUP SOME OF THE LOSSES FOR SHAREHOLDERS PUBLIC SHAREHOLDERS WHO ANALYSTS SAY AREN'T EXPECTED TO SEE ANYTHING FOR THEIR INVESTMENT IN THE COMPANY AFTER THE ROYAL BANK TRANSACTION ALSO COULD DERAIL THE SALE BY VOTING AGAINST IT OR TAKING LEGAL ACTION TO BLOCK THE TRANSACTION IF A LAWSUIT WERE INITIATED THAT WOULD CAUSE A REAL PROBLEM SAID ALAIN TUCHMAIER AN ANALYST WITH MCLEAN MCCARTHY LTD IN TORONTO FOR NOW THE GROUP SAYS IT IS SEEKING ABOUT 25000 CANADIAN DOLLARS US19915 IN CONTRIBUTIONS FROM OTHER SHAREHOLDERS AND OWNERS OF THE COMPANY'S PREFERRED SHARES AND DEBENTURES TO FINANCE THE INDEPENDENT REVIEW IT HAS PROPOSED MR BUDD SAYS HE HAS LOST NEARLY C220000 ON ROYAL TRUSTCO HE SAYS HE BOUGHT THE SHARES AT ABOUT C4 A SHARE LAST SEPTEMBER BASED ON THE PUBLIC STATEMENTS OF ROYAL TRUSTCO AND CONVERSATIONS WITH COMPANY OFFICIALS WHO HE SAYS ASSURED HIM THAT THE COMPANY WAS SOLID AND WELLCAPITALIZED BUT INSTEAD OF THE BLUECHIP TURNAROUND HE EXPECTED I'VE LOST ALMOST MY ENTIRE SAVINGS HE SAYS IN TRADING ON THE TORONTO STOCK EXCHANGE YESTERDAY ROYAL TRUSTCO SHARES CLOSED AT 35 CANADIAN CENTS UP THREE CENTS ROYAL TRUSTCO ANNOUNCED IN JANUARY IT WAS LOOKING FOR AN INFUSION OF NEW EQUITY TO IMPROVE THE COMPANY'S CAPITAL STRUCTURE FAILING IN THAT OBJECTIVE IT OPTED TO SELL ITS REMAINING ASSETS TO ROYAL BANK UNDER THE TERMS OF THE TRANSACTION TRUSTCO WILL RECEIVE ABOUT C165 BILLION FOR THE ASSETS BUT WILL HAVE TO SPEND ABOUT C32 BILLION TO BUY BACK LOANS FROM THE BANK MR TUCHMAIER SAID IT REMAINS UNCLEAR WHETHER ROYAL TRUSTCO WILL BE ABLE TO RAISE THE FUNDS NEEDED TO COMPLETE THE LOAN BUYBACK A SPOKESMAN FOR ROYAL TRUSTCO SAID THE ROYAL BANK TRANSACTION HAS BEEN CAREFULLY CONSIDERED AND APPROVED BY DIRECTORS HE SAID ROYAL TRUSTCO LOOKS FORWARD TO MEETING WITH COMMITTEE MEMBERS TO DISCUSS THEIR CONCERNS 9304210002 930421 ECONOMY DEMOCRATS MULL BEATING RETREAT ON STIMULUS BILL UNEMPLOYMENT BENEFITS MAY BE SOLE SURVIVOR OF SENATE STALEMATE BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CONTINUED STALEMATE OVER PRESIDENT CLINTON'S ECONOMICSTIMULUS BILL IS PUSHING SENATE DEMOCRATS TOWARD ABANDONING THE INITIATIVE AND RETREATING TO A STRIPPEDDOWN MEASURE THAT FUNDS ONLY UNEMPLOYMENT BENEFITS FOR THE LONGTERM JOBLESS A FINAL DECISION IS LIKELY TO COME TODAY AFTER A LAST ATTEMPT TO BREAK THE REPUBLICAN FILIBUSTER AND MAJORITY LEADER GEORGE MITCHELL OF MAINE SIGNALED HIS GROWING IMPATIENCE IN A CLOSEDDOOR CAUCUS YESTERDAY WE'RE GOING TO EAT SOME VERY COLD CROW SAID ONE DEMOCRATIC SENATOR MITCHELL'S READY TO PULL THE BILL DOWN MINORITY LEADER ROBERT DOLE OF KANSAS IS SAID TO FAVOR THE SAME BAREBONES RESOLUTION OF THE IMPASSE IN BACKTOBACK ROLL CALLS LAST EVENING THE CHAMBER REMAINED SHARPLY SPLIT OVER COMPETING ATTEMPTS TO PARE THE CLINTON ADMINISTRATION'S INITIAL PACKAGE WHITE HOUSE OFFICIALS INCLUDING BUDGET DIRECTOR LEON PANETTA CAME TO THE CAPITOL LATER TO CONFER WITH MR MITCHELL AND THE ADMINISTRATION APPEARS PESSIMISTIC AS TO WHETHER A COMPROMISE CAN BE REACHED IN THE NARROW WINDOW OF TIME REMAINING THE DEFEAT WOULD BE THE MOST SERIOUS YET SUFFERED BY MR CLINTON IN CONGRESS BUT THE REPUBLICANS' USE OF FILIBUSTER TACTICS COULD RAISE LONGERTERM PROBLEMS FOR THAT PARTY WITH ISSUES LIKE CAMPAIGN FINANCE REFORM ON THE AGENDA DEMOCRATS WILL BE BETTER POSITIONED TO PAINT THE MINORITY AS OBSTRUCTIONIST AND WHILE BOTH SIDES HAVE INDULGED IN OVERHEATED RHETORIC THE PARTISANSHIP OF THE REPUBLICAN TACTICS HAS BECOME MORE APPARENT AS THE STALEMATE HAS CONTINUED AS APPROVED BY THE HOUSE MR CLINTON'S INITIAL REQUEST CALLED FOR 163 BILLION IN NEW APPROPRIATIONS COUPLED WITH 32 BILLION FROM EXISTING FEDERAL TRUST FUNDS FOR HIGHWAY AND PUBLIC WORKS BY A 5246 MARGIN THE SENATE APPROVED REVISIONS LAST NIGHT THAT WOULD REDUCE THE TOTAL PACKAGE BY AT LEAST 4 BILLION BUT NO REPUBLICANS JOINED EVEN THIS EFFORT IN THE NAME OF COMPROMISE THE VOTE FOLLOWED A 5345 ROLL CALL KILLING A GOP ALTERNATIVE THAT WOULD HAVE PROVIDED ONLY 6 BILLION TOWARD THE PRESIDENT'S INITIAL PROPOSALS AND REPRESENTED A PAREDBACK VERSION OF A COMPROMISE PUT FORWARD THIS WEEK BY REPUBLICAN SEN MARK HATFIELD THE AMERICAN PEOPLE HAVE SAID LET'S SLOW DOWN' MR DOLE SAID IN APPEALING PUBLICLY FOR BIPARTISAN SUPPORT BUT THE PACKAGE WAS IN FACT CRAFTED TO BE UNPALATABLE TO MANY DEMOCRATS AND SO ENSURE DEFEAT WHILE DEMANDING OFFSETTING CUTS MR HATFIELD HAD BEEN WILLING TO INCLUDE MORE THAN 85 BILLION OF THE PRESIDENT'S PACKAGE HOWEVER YOUNG CONSERVATIVES PRIVATELY FEARED THAT BY GOING SO FAR DEMOCRATS MIGHT BE LURED ABOARD THUS THE FINAL GOP PACKAGE INCLUDED NONE OF THE FUNDING FOR MASS TRANSIT OR RURAL WASTEWATER GRANTS PROPOSED BY MR HATFIELD AND HIGHWAY FUNDING WAS PARED TO JUST 1 BILLION OR ABOUT ONETHIRD OF WHAT THE OREGON REPUBLICAN AND THE PRESIDENT HAD PROPOSED JUST FOUR DEMOCRATS FINALLY JOINED THE 41 VOTING REPUBLICANS IN SUPPORT OF THE GOP PLAN AND WHATEVER THIN HOPE REMAINS FOR COMPROMISE WILL REST WITH REACHING OUT TO MR HATFIELD AND GOP MODERATES WILLIAM COHEN OF MAINE JAMES JEFFORDS OF VERMONT AND ARLEN SPECTER OF PENNSYLVANIA WHO ARE BELIEVED TO BE SYMPATHETIC TO THE HATFIELD APPROACH IN AN EMBARRASSING EPISODE LAST NIGHT MR COHEN FIRST INDICATED TO REPORTERS THAT HE WAS PREPARED TO END THE FILIBUSTER THIS MORNING BUT AFTER GOING BACK TO THE REPUBLICAN CLOAKROOM THE MAINE SENATOR RETURNED SOMEWHAT SHEEPISHLY MINUTES LATER TO SAY HE WOULD STAND WITH HIS LEADERSHIP AND OPPOSE CLOTURE MR MITCHELL APPEARS WILLING TO ENTERTAIN SOME EFFORT BY THE APPROPRIATIONS COMMITTEE LEADERSHIP INCLUDING MR HATFIELD TO CRAFT A PACKAGE BUT THEIR HOUSE COUNTERPARTS HAVE LITTLE APPETITE FOR PICKING AND CHOOSING AMONG THE VARIOUS CONSTITUENCIES THAT HAVE A STAKE IN THE INDIVIDUAL PROGRAMS AS THE FIGHT HAS CONTINUED THE POLITICAL EQUATION HAS CHANGED TOO FOR DEMOCRATS WHO SAY PRIVATELY THAT THERE IS MORE VALUE IN LAYING BLAME ON REPUBLICANS THAN IN PRESERVING A WHITTLEDDOWN PROGRAM THAT ACHIEVES FEW OF THE ADMINISTRATION'S INITIAL GOALS HE HASN'T BEEN IN OFFICE FOR 100 DAYS AND OUR REPUBLICAN COLLEAGUES DON'T WANT TO GIVE HIM A CHANCE MR MITCHELL SAID IN A FINAL APPEAL LAST NIGHT THIS IS THE ISSUE DOING NOTHING OR DOING SOMETHING SEPARATELY COMMENTS AT A SENATE FINANCE COMMITTEE HEARING YESTERDAY HINTED AT PROBLEMS AHEAD ON THE TAX PORTION OF PRESIDENT CLINTON'S PROGRAM AT THE SESSION WHICH FOCUSED ON THE PRESIDENT'S PROPOSED BROADBASED ENERGY TAX TREASURY SECRETARY LLOYD BENTSEN REVIEWED SOME CHANGES THE ADMINISTRATION HAD MADE TO MOLLIFY SENATORS' CONCERNS FOR INDUSTRIES AND CONSUMERS IN THEIR REGIONS EVEN SO SENATORS OF BOTH PARTIES COMPLAINED ABOUT THE POTENTIAL IMPACT DEMOCRAT MAX BAUCUS CITED THE ALUMINUM AND COAL INDUSTRIES IN HIS HOME STATE OF MONTANA REPUBLICAN BOB PACKWOOD REFERRED TO HYDROELECTRIC POWER IN OREGON KENT CONRAD D ND LED SEVERAL SENATORS IN EXPRESSING CONCERN FOR FARMERS AND DEMOCRATS JOHN BREAUX OF LOUISIANA AND DAVID BOREN OF OKLAHOMA SPOKE UP FOR THE OIL AND GAS INDUSTRIES BACK HOME MR BENTSEN SAID THE ADMINISTRATION'S TAX PROPOSAL IS COMPLETE AND THAT OFFICIAL LANGUAGE WILL BE SENT TO CONGRESS IN ABOUT 10 DAYS PERHAPS RECOGNIZING REALITY HOWEVER HE SEEMED TO INVITE FURTHER CHANGES FROM MEMBERS OF CONGRESS' TAXWRITING COMMITTEES AT ONE POINT COMMITTEE CHAIRMAN DANIEL MOYNIHAN D NY SAID I CANNOT DOUBT THAT THERE WILL BE OTHER ADJUSTMENTS JACKIE CALMES CONTRIBUTED TO THIS ARTICLE 9304210001 930421 INVESTORS PUNISH STOCK OF WASTE MANAGEMENT UNIT'S FIRSTQUARTER PROFIT WAS BOOSTED BY SELLING AFFILIATED FIRM'S STOCK BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL SHARES OF WASTE MANAGEMENT INC AND ITS CHEMICAL WASTE MANAGEMENT INC UNIT TUMBLED AFTER THE COMPANY SAID THE UNIT MET ITS FIRSTQUARTER PROFIT PROJECTION ONLY BY SELLING A LARGE BLOCK OF STOCK IN AN AFFILIATED COMPANY LATE IN THE QUARTER AS RECENTLY AS APRIL 13 SEEKING TO REVERSE MARKET SENTIMENT THAT HAD DRIVEN THE STOCK PRICES OF WASTE MANAGEMENT AND CHEMICAL WASTE MANAGEMENT TO 52WEEK LOWS THE OAK BROOK ILL COMPANY HAD ASSURED INVESTORS THAT CHEMICAL WASTE WOULD REPORT FIRSTQUARTER NET INCOME OF 10 TO 15 CENTS A SHARE OR 213 MILLION TO 319 MILLION BASED ON ABOUT 2126 MILLION SHARES OUTSTANDING YESTERDAY ACTUAL RESULTS OF 213 MILLION OR 10 CENTS A SHARE WERE REPORTED DOWN 21 FROM 269 MILLION OR 14 CENTS A SHARE ON FEWER SHARES OUTSTANDING A YEAR EARLIER BUT NEARLY 40 8 MILLION OR FOUR CENTS A SHARE OF THE 1993 FIRSTQUARTER PROFIT WAS PRIMARILY FROM THE MARCH 23 SALE BY CHEMICAL WASTE OF 17 MILLION SHARES AT 20 EACH IN WHEELABRATOR TECHNOLOGIES INC ANOTHER UNIT MAJORITYOWNED BY WASTE MANAGEMENT INC THE COMPANY DISCLOSED IN A SEPARATE FILING WITH THE SECURITIES AND EXCHANGE COMMISSION THAT'S NOT REAL EARNINGS SAID HUGH F HOLMAN AN ANALYST AT ALEX BROWN & SONS INC IN BALTIMORE THIS IS A COMPANY THAT HAS RABBITS HIDDEN IN SEVERAL HATS ADDED MARI BARI AN ANALYST AT MABON SECURITIES CORP IN NEW YORK PEOPLE WERE ASSUMING THAT THE 10 CENTS TO 15 CENTS PROJECTED WAS OPERATIONS INVESTORS REACTED BY PUSHING CHEMICAL WASTE SHARES DOWN 1625 TO CLOSE AT 12875 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING AFTER THE STOCK HIT A 52WEEK LOW OF 12625 EARLIER IN THE DAY WASTE MANAGEMENT SHARES DECLINED 125 TO CLOSE AT 31875 MS BARI DESCRIBED A CONFERENCE CALL BETWEEN CHEMICAL WASTE EXECUTIVES AND ANALYSTS AND INVESTORS YESTERDAY MORNING AS A MAJOR DISASTER A SPOKESMAN FOR WASTE MANAGEMENT WHICH FOR YEARS HAS ENJOYED STRONG SUPPORT FROM WALL STREET AS ITS STOCK PRICE ROSE STEADILY SAID WE PUT OUT THE BEST INFORMATION WE HAVE TO HELP OUR SHAREHOLDERS THAT'S ALL I'M GOING TO SAY THE STOCK PRICES OF WASTE MANAGEMENT AND CHEMICAL WASTE HAVE GROWN MORE VOLATILE IN RECENT MONTHS AS INVESTORS HAVE HEARD TWO DISTINCT VIEWS ONE FROM THE LIKES OF MR HOLMAN AND MS BARI HOLDS THAT BOTH THE GARBAGE BUSINESS AND THE HAZARDOUSWASTE BUSINESS ARE PLAGUED BY TOO MUCH DISPOSAL CAPACITY AND TOO LITTLE WASTE THE OTHER FROM WASTE MANAGEMENT EXECUTIVES AND THE COMPANY'S BOOSTERS ON WALL STREET CONTENDS THAT THE RECESSION IS LARGELY TO BLAME FOR RECENT EARNINGS DISAPPOINTMENTS AND THAT THE COMPANY IS WELL POSITIONED TO RENEW ITS ONCERAPID GROWTH CHEMICAL WASTE'S FIRSTQUARTER RESULTS NOW THREATEN TO ADD TO THAT DEBATE THE ISSUE OF MANAGEMENT CREDIBILITY IN DESCRIBING ITS PROSPECTS THAT'S EXACTLY WHAT THE ISSUE IS MS BARI CONTENDS SEPARATELY IN THE SEC FILING WASTE MANAGEMENT SAID IT IS CONSIDERING A PUBLIC OFFERING DURING 1993 OF STOCK IN RUST INTERNATIONAL INC YET ANOTHER MAJORITYOWNED UNIT SET UP TO PURSUE MAJOR ENVIRONMENTAL CLEANUP JOBS FROM THE ENERGY DEPARTMENT AND OTHERS RUST SHARES COULD BEGIN TRADING PUBLICLY AS SOON AS MAY 7 WHEN HOLDERS OF BRAND COS INC ANOTHER WASTE MANAGEMENTCONTROLLED CONCERN VOTE ON A MERGER INTO RUST CHEMICAL WASTE AND WHEELABRATOR ARE ALSO CONTRIBUTING OPERATIONS TO RUST 9304210111 930315 MANAGER'S JOURNAL WHOEVER WROTE ADA REGS NEVER RAN A BUSINESS BY JULIE C JANOFSKY A BUSINESSMAN IN MARYLAND RECENTLY SOUGHT THE ADVICE OF AN ATTORNEY AT MY FIRM BECAUSE HIS PLACE OF BUSINESS APPEARED TO BE INACCESSIBLE TO THE HANDICAPPED AFTER HEARING A RECITAL OF THE MANY NEW OBLIGATIONS IMPOSED BY THE AMERICANS WITH DISABILITIES ACT ADA INCLUDING BOTH THE ACCESS AND THE EMPLOYMENT REQUIREMENTS THE SHOCKED BUSINESSMAN CANDIDLY TOLD THE ATTORNEY THAT HE HAD NO INTENTION OF COMPLYING WITH ALL OF THAT HE REASONED THAT IT WOULD BE SIMPLER AND CHEAPER IN THE LONG RUN TO WAIT AND SEE IF ANYONE SUED IF HE WAS SUED HE WOULD MAKE CHANGES THEN EVEN THEN HE FIGURED HE WOULD BE AHEAD ALL OVER THE US BUSINESSES HAVE SPENT MILLIONS OF DOLLARS TO SEND THEIR MANAGERS TO SEMINARS AND SPEECHES TO LEARN HOW TO COMPLY WITH THE ADA BUT INSTEAD OF RECEIVING ENLIGHTENMENT THOSE MANAGERS OFTEN RETURN TO THEIR BUSINESSES WITH THEIR HEADS SPINNING TROUBLED BY THE COST OF COMPLIANCE AND CONFUSED OVER THE SCOPE OF THE NEW EDICTS MANY OF THOSE AFFECTED BY THE LAW HAVE MADE A BUSINESS DECISION TO WAIT TO BE SUED RATHER THAN TO COMPLY VOLUNTARILY THESE PEOPLE HAVE NOT SUDDENLY CHOSEN TO BECOME OUTLAWS THEIR PROBLEM IS THAT THE LAW IS SO COMPLICATED AND UNCLEAR THAT THE ONLY WAY THEY CAN KNOW EXACTLY WHAT IT REQUIRES OF THEM IS TO BE TOLD BY A JUDGE INDEED THE ADA IS SO CONFUSING THAT IT MAY BE UNTEACHABLE TO THE MILLIONS OF MANAGERS WHO ARE MOST AFFECTED BY IT CASE PRECEDENTS MAY NOT BE HELPFUL IN CLEARING UP THE CONFUSION EITHER MY FIRM IS REPRESENTING A BUSINESS IN THE FIRST ENFORCEMENT CASE BROUGHT BY THE JUSTICE DEPARTMENT UNDER THE ACCESS PROVISIONS OF THE ADA OUR CLIENT IS A BUSINESS THAT RAN A PROFESSIONAL LICENSURE EXAM REVIEW COURSE AND OFFERED A HEARINGIMPAIRED STUDENT A VERBATIM TRANSCRIPT OF THE COURSE THE STUDENT HAD DEMANDED A SIGNLANGUAGE INTERPRETER INSTEAD IN DISCUSSIONS WITH THE BUSINESS THE JUSTICE DEPARTMENT TOOK THE POSITION THAT WHETHER THE ACCOMMODATION WAS ADEQUATE SHOULD BE JUDGED SOLELY BY THE DISABLED PERSON IN ITS SUIT THE JUSTICE DEPARTMENT HAS SOUGHT CIVIL PENALTIES OF AS MUCH AS 50000 AS WELL AS DAMAGES FOR THE STUDENT THERE ARE ONLY A HANDFUL OF EMPLOYMENT LAWS THAT AFFECT THE VAST MAJORITY OF EMPLOYERS IN THE US MOST OF THOSE LAWS ARE FAIRLY PLAIN YOU CANNOT DISCRIMINATE BASED ON SEX AGE RACE AND THE LIKE YOU MUST PAY MINIMUM WAGE AND OVERTIME WHEN REQUIRED THIS IS HARDLY THE CASE WITH THE ADA THE LIST OF REQUIRED READING TO UNDERSTAND THE ADA IS DAUNTING EVEN TO EXPERIENCED ATTORNEYS AND ENSURES THAT VIRTUALLY NO LAY EMPLOYER CAN EVER FULLY COME TO GRIPS WITH THE LAW LET ALONE FULLY COMPLY WITH IT THE PROBLEMS ONLY BEGIN WITH THE DEFINITION OF DISABILITY WHICH CASTS SO WIDE A NET THAT IT INCLUDES EVEN ALLERGIES AND LEARNING PROBLEMS AND BECAUSE DISABILITIES ARE SELFIDENTIFIED BY THE EMPLOYEE UNDER THE ADA THAT MEANS THAT THE ACCOMMODATIONS REQUIRED OF THE EMPLOYER ARE ALSO DEFINED BY THE EMPLOYEE ONCE AN EMPLOYEE IDENTIFIES HIMSELF OR HERSELF AS HAVING A DISABILITY THERE ARE VIRTUALLY NO LIMITS TO WHAT ACCOMMODATIONS CAN BE DEMANDED IN THE AMERICANS WITH DISABILITIES ACT MANUAL THE EMPLOYMENT PROVISIONS OF THE ADA OCCUPY ONLY ABOUT FOUR PAGES HOWEVER THE COMMENTARY ON THOSE SAME PROVISIONS REQUIRES HUNDREDS UPON HUNDREDS OF PAGES INCLUDING THE LEGISLATIVE HISTORY OF THE LAW THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION'S RULES JOINT PROCEDURAL REGULATIONS OF THE EEOC AND OTHER AGENCIES EEOC POLICY STATEMENTS THE JUSTICE DEPARTMENT'S RULES AND PREAMBLE THE EEOC'S TECHNICAL ASSISTANCE MANUAL THE JUSTICE DEPARTMENT TECHNICAL ASSISTANCE MANUAL THE IRS POLICY STATEMENT ON DISABILITYRELATED TAX PROVISIONS APPLICABLE TO BUSINESSES AND THE EEOC'S AND THE JUSTICE DEPARTMENT'S QUESTIONANDANSWER BROCHURE FOR EMPLOYERS SO ANY EMPLOYER WHO THINKS THAT HE OR SHE CAN GET AWAY WITH JUST STUDYING THE TEXT OF THE LAW ITSELF MUST BEWARE TO MAKE MATTERS WORSE THE GOVERNMENT'S SOCALLED TECHNICAL ASSISTANCE MANUALS ARE SO TECHNICAL THAT THEY ARE OF LITTLE ASSISTANCE TO EMPLOYERS ALTHOUGH THEY MAY PROVE TO BE OF GREAT HELP TO EMPLOYEES WHO SUE CONSIDER FOR EXAMPLE THE PROBLEM OF SCREENING APPLICANTS WHO ARE ADDICTED TO ILLEGAL DRUGS ON THE FACE OF IT ILLEGAL DRUG ABUSERS ARE NOT PROTECTED UNDER THE ADA DON'T TAKE TOO MUCH COMFORT IN THAT THOUGH PAST DRUG ABUSE IS CONSIDERED A DISABILITY WITHIN THE PROTECTION OF THE ADA TO ADD TO THE CONFUSION CURRENT ADDICTION TO LEGAL DRUGS OR ALCOHOL IS ALSO PROTECTED UNDER THE ADA WHAT ALL THIS MEANS IS THAT AN EMPLOYER CAN ASK AN APPLICANT ABOUT PRESENT ILLEGAL DRUG ABUSE BUT NOT ABOUT PRESENT LEGAL DRUG OR ALCOHOL ABUSE OR PAST ABUSE OF ANY SUBSTANCE LEGAL OR ILLEGAL JUST TRY TO EXPLAIN THAT TO YOUR PERSONNEL MANAGERS AND HOW FAR IN THE PAST IS CONSIDERED PAST DRUG ABUSE THE EEOC'S TECHNICAL ASSISTANCE MANUAL GIVES NO GUIDANCE AS TO WHETHER THAT MEANS TWO WEEKS SIX WEEKS OR SIX MONTHS AND WHAT ABOUT SAY LAW ENFORCEMENT OFFICERS FOR WHOM A DRUGFREE HISTORY IS CONSISTENT WITH BUSINESS NECESSITY THE TECHNICAL ASSISTANCE MANUAL MAKES CLEAR THAT EVEN IN THIS CASE EXCLUSION OF A PERSON WITH A HISTORY OF ILLEGAL DRUG USE MIGHT NOT BE JUSTIFIED AUTOMATICALLY AS A BUSINESS NECESSITY UNDER SOME CIRCUMSTANCES WHAT THIS ILLUSTRATES IS THAT THE EEOC REQUIRES A CASEBYCASE ANALYSIS OF EACH EMPLOYEE'S PARTICULAR CIRCUMSTANCES GIVING VIRTUALLY NO PREDICTABILITY TO EMPLOYERS WHO ARE LEFT TO RELY UPON THE COURTS TO SORT THROUGH EACH ADA PROBLEM THE LAW AND THE COMMENTARY ARE EVEN MORE BIZARRE WHEN THEY ADDRESS WHAT THE EMPLOYER CAN AND CANNOT SAY TO AN APPLICANT WITH A DISABILITY NO MATTER HOW PROFOUND THE DISABILITY IS THE EMPLOYER IS BARRED FROM INITIATING ANY DISCUSSION ABOUT IT BEFORE MAKING A CONDITIONAL JOB OFFER THE EMPLOYER MAY NOT ASK ANYTHING AT ALL ABOUT THE NATURE SEVERITY OR PROGNOSIS OF THE CONDITION INCLUDING ITS DURATION THE ADA'S FRAMERS AND COMMENTATORS MANY OF WHOM NO DOUBT NEVER HIRED ANYONE IN THEIR LIVES HAVE GAGGED YOU THE HIRING MANAGER INTO SITTING MUTELY BEFORE AN OBVIOUSLY DISABLED APPLICANT ALLOWING YOU ONLY TO ASK WHETHER THE APPLICANT CAN PERFORM THE ESSENTIAL FUNCTIONS OF THE JOB AND WHAT IF ANY ACCOMMODATIONS ARE REQUIRED IF THE ANSWERS ARE NOT CANDID OR FORTHCOMING YOU CANNOT ASK ANY FOLLOWUP QUESTIONS BUT MUST DROP THE ENTIRE SUBJECT LIKE THE LEGAL HOT POTATO THAT IT HAS BECOME NEVER BEFORE WAS THERE SUCH A REGULATION OF FREE SPEECH LET ALONE OF JUSTIFIABLE CURIOSITY IMPOSED BY THE GOVERNMENT UPON SUCH A LARGE GROUP EVEN MORE CONFUSING IS THE FACT THAT THE ADA DOES NOT PROHIBIT A PHYSICAL EXAM AFTER AN OFFER OF EMPLOYMENT IS MADE AND THERE IS LITTLE RESTRICTION UPON WHAT QUESTIONS CAN BE ASKED AT THE PHYSICAL THAT MEANS THAT THE SAME QUESTIONS THAT THE EMPLOYER COULD NOT ASK AT THE 10 AM INTERVIEW MAY BE PERFECTLY LEGAL AFTER THE 1 PM JOB OFFER AND THE 2 PM PHYSICAL EXAM WHILE IT IS NOT CLEAR YET WHAT EFFECT THE ADA HAS HAD IN NURTURING ACCESS AND EMPLOYMENT OPPORTUNITIES FOR THOSE WHO ARE TRULY DISABLED IT IS CLEAR THAT ALL OF THE CONFUSION GENERATED BY THE LAW HAS NURTURED A LEGION OF LAWYERS AND CONSULTANTS THE ADA WITH ITS IMPRECISION AND ITS STANDARDLESS CASEBYCASE RULES MAY PROVE TO BE ONE OF THE GRANDEST AND MOST EXPENSIVE ATTEMPTS YET AT GOVERNMENT MICROMANAGEMENT OF BUSINESS MS JANOFSKY A TRIAL ATTORNEY IN BALTIMORE HAS HANDLED A WIDE VARIETY OF EMPLOYMENT MATTERS SEE RELATED LETTERS LETTERS TO THE EDITOR ADA BRINGS DISABLED INTO MAINSTREAM WSJ APRIL 21 1993 9303150078 9304210097 930323 HOW TO GET AHEAD AS A MIDDLE MANAGER BY BEING RUTHLESS EXECUTIVE STRATEGIES MONTHLY OFFERS TIPS BUT ITS EDITOR TRULY IS A KINDHEARTED SOUL BY BRENT BOWERS STAFF REPORTER OF THE WALL STREET JOURNAL SOMETIMES EXECUTIVE STRATEGIES GIVES SUCH OUTRAGEOUS ADVICE THAT EVEN THE GUY WHO WRITES THE NEWSLETTER BRIDLES PERSONALLY I FIND IT TOTALLY ABHORRENT SAYS EDITOR THOMAS WEYR OF HIS RECOMMENDATION TO MANAGERS THAT THEY SNOOP ON THEIR UNDERLINGS MR WEYR IS ENJOYING LUNCH AND A GLASS OF WINE AT HIS MANHATTAN CLUB THE PLAYERS AFTER A GIBSON AT THE BAR NEVER MIND THAT IN HIS APRIL ISSUE HE URGED EXECUTIVES TO BAIL OUT FAST FROM ASSOCIATING WITH COLLEAGUES WHO DRINK AT LUNCH INVASION OF EMPLOYEE PRIVACY IS BECOMING A ROUTINE TOOL OF MANAGEMENT THE ADVICE READS SAVVY EXECUTIVES MAKE SURE TO GET REAL CAREER MILEAGE FROM THE VIDEOTAPE AND THE CAMERA THIS IS REVOLTING STUFF MR WEYR CONCEDES I'D QUIT A JOB IN A MINUTE IF THEY PUT IN A CAMERA BUT THAT IS BESIDE THE POINT THE PURPOSE OF EXECUTIVE STRATEGIES IS TO TELL MIDDLE MANAGERS HOW TO SURVIVE THE DOWNSIZING OF CORPORATE AMERICA NOT TO SERVE UP PLATITUDES ABOUT MAKING THE WORKPLACE OF THE 1990S MORE CONGENIAL THE ESSENTIAL MESSAGE COMMUNICATED BY THE 65YEAROLD MR WEYR PRONOUNCED WIRE BE AS RUTHLESS AS YOU MUST TOWARD SUBORDINATES AND RIVALS WHILE TOADYING TO THE HIGHERUPS HOW BRUTAL DO MANAGERS HAVE TO GET CONSIDER THESE EXECUTIVE STRATEGIES EXCERPTS AUGUST 1992 MAKE A VISITOR STAND IN FRONT OF YOUR DESK LEAN BACK AND LOOK AT HIM COLDLY THROUGH A FROZEN SMILE THE BODY LANGUAGE OF CONTEMPT CAN CUT YOUR OPPONENT LIKE A RAZOR OCTOBER 1992 TANTRUMS SHOULD BE SUDDEN SCARY AND SEEMINGLY IRRATIONAL THROWING A TANTRUM CAN BE FUN JANUARY 1993 EVERYBODY CHEATS AT ONE TIME OR ANOTHER IN ORDER TO ADVANCE THEIR CAREERS DIRTY TRICKS ARE PART OF THE GAME ARE SOME READERS OFFENDED BY ALL THIS SURE THEY ARE I DON'T LIKE IT SAYS J KENNETH HAZEN PRESIDENT OF A MEMPHIS TENN COMPANY THAT PROCESSES FREIGHT BILLS AND SUBSCRIBES TO EXECUTIVE STRATEGIES WOMEN IN GENERAL DON'T LIKE THE NEWSLETTER EITHER OR SO IT SEEMS ACCORDING TO WARREN BROWN THE RECENTLY RETIRED DIRECTOR OF MAILORDER SALES FOR THE NEWSLETTER'S PUBLISHER THE NATIONAL INSTITUTE OF BUSINESS MANAGEMENT IN ALEXANDRIA VA SO FEW WOMEN SUBSCRIBED THAT WOMEN'S NAMES WERE PURGED FROM MAILING LISTS USED TO PITCH SUBSCRIPTIONS BUT EXECUTIVE STRATEGIES DEFINITELY HAS ITS FANS AMONG THEM THE REV RONALD THORNTON OF THE WEST ANGELES CHURCH OF GOD IN CHRIST IN LOS ANGELES HE SAYS IT HELPS HIM OVERSEE HIS DOZEN WORKERS I'M A BIT TOO GOODHEARTED HE SAYS BUT IN MANAGEMENT I'VE GOT TO GET A JOB DONE BESIDES HE SEES DIVINE PRECEDENT CHRIST USED HIS ROD IN THE TEMPLE THE SIXYEAROLD PUBLICATION HAS A PAID CIRCULATION OF 45000 A ONEYEAR SUBSCRIPTION 12 ISSUES COSTS 59 GENERATING NEARLY 27 MILLION IN REVENUE FOR THE PRIVATELY HELD NIBM WHICH ALSO PUBLISHES BOOKS AND FIVE OTHER NEWSLETTERS MR WEYR WHO WRITES PRACTICALLY EVERYTHING IN THE 12PAGE EXECUTIVE STRATEGIES IS PAID ABOUT 70000 A YEAR SUBSCRIBER PETER BEREN ASSOCIATE PUBLISHER OF SIERRA CLUB BOOKS IN SAN FRANCISCO SAYS THE NEWSLETTER'S VERY CALLOUSNESS GIVES HIM A GLIMPSE INTO THE WAY THE ENEMY IS THINKING BUT BENEATH ITS SEEMINGLY HEARTLESS SURFACE HE THINKS HE DETECTS THE VOICE OF A SUBVERSIVE IDEALIST HIDDEN IN A MACHIAVELLIAN COAT MUCH OF EXECUTIVE STRATEGIES' CONTENT ISN'T MEAN SOME IS STRAIGHTFORWARD SELFCENTERED ADVICE ON CIRCULATING AT COCKTAIL PARTIES AND SUCH BUT THERE IS ENOUGH NASTINESS TO INSPIRE 15 TO 20 PROTEST LETTERS A MONTH SAYS STEVE STURM THE 35YEAROLD PRESIDENT OF NIBM HE COULD NOT CARE LESS ABOUT ANGRY LETTERS IF YOU HAVE TO HUMILIATE SOMEBODY TO ESTABLISH CONTROL WE'RE GOING TO TELL YOU DO THAT' HE SAYS HE PRACTICES WHAT HE PREACHES HE SAYS I'M NOT ABOVE THROWING A SPONTANEOUS' CONTROLLED ERUPTION OF ANGER SAYS MR STURM WHOSE VERY NAME SUGGESTS STURM UND DRANG IS MR WEYR AFRAID OF HIM MR STURM IS ASKED IF HE DOESN'T DO HIS JOB HE'S NOT GOING TO HAVE IT ANSWERS MR STURM MR WEYR HAS BEEN WITH NIBM AND ITS PREDECESSOR THE NEWSLETTER DIVISION OF THE RESEARCH INSTITUTE OF AMERICA FOR 20 YEARS AND CLEARLY WANTS TO STAY ON THE GOOD SIDE OF HIS BOSS HE TWISTS HIS WEDDING RING NERVOUSLY AS HE ANSWERS A REPORTER'S QUESTIONS MR WEYR IS A VERY UNLIKELY ANTIHERO WITH HIS WISPY BEARD BLACKRIMMED GLASSES AND CROOKED SMILE HE RESEMBLES A 19THCENTURY QUAKER PREACHER HE IS HE SAYS A LIBERAL DEMOCRAT HE WAS BORN IN AUSTRIA HAS WRITTEN SEVERAL BOOKS SPEAKS FIVE LANGUAGES AND HOLDS A PHD IN PSYCHOLOGY FROM THE UNIVERSITY OF VIENNA HE READS BOOKS AND MAGAZINES VORACIOUSLY FOR IDEAS FOR HIS ARTICLES BUT HE CONFESSES THAT SOME OF HIS PASSAGES ARE INSPIRED BY TOUGHGUY TALK IN TELEVISION SHOWS LIKE LA LAW AND IN OLD MOVIES THEY SNEERED BETTER IN THE BLACKANDWHITE MOVIES THAN WE DO TODAY HE SAYS NICE THIN SNEERS CURRENT AND FORMER COLLEAGUES DESCRIBE MR WEYR AS UNASSUMING PROFESSORIAL SHY TO THE POINT OF RECLUSIVENESS AND A BIT OF A SOFT TOUCH HE'S A TRUE GENTLEMAN A MODEL OF COMPASSION AND FLEXIBILITY SAYS BARRY LENSON WHO ONCE WORKED FOR HIM AT NIBM ROBERT STOKES ANOTHER FORMER COLLEAGUE SAYS MR WEYR TENDS TO BLOW UP AT OBJECTS AND PRACTICES HE DISLIKES NOT AT INDIVIDUALS HE GOT VERY EXERCISED A FEW YEARS AGO FOR INSTANCE WHEN HE LEARNED THAT HIS FAVORITE MEN'S STORE WAS NO LONGER SELLING THREEPIECE SUITS BUT DOESN'T ANYBODY DISLIKE HIM EVER HELPFUL MR WEYR SUPPLIES THE NAME OF A WRITER NO LONGER WITH NIBM WHO PROBABLY HATES MY GUTS THE SUSPICION IS JUSTIFIED THE FORMER EMPLOYEE DESCRIBES MR WEYR AS AN OVERBEARING JERK BUT IF THERE IS A TOUGH HOMBRE IN THIS PICTURE IT SEEMS TO BE MR STURM HE PERIODICALLY TAKES A GROUP OF NIBM EMPLOYEES FROM SEVERAL DEPARTMENTS TO LUNCH AND SAYS TO THEM THEY HAVE TO EARN THE MEAL BY TELLING HIM SOMETHING ABOUT THE COMPANY HE DOESN'T ALREADY KNOW THEN HE GRADES THEIR RESPONSES HE SAYS THE POINT IS TO GENERATE IDEAS AND INCREASE COMMUNICATION THE 6FOOT4 MR STURM WHO SAYS HE IS A JACK KEMP REPUBLICAN IS SAID TO PLAY A VERY PHYSICAL GAME OF ICE HOCKEY AND TO USE HIS ELBOWS TO HIS ADVANTAGE ON A BASKETBALL COURT AT NIBM THE BOSS HAS NO QUALMS ABOUT FIRING NONPERFORMERS HE FIGURES HE HAS CANNED 50 PEOPLE IN 10 YEARS ABOUT FIVE IN HIS SIX YEARS AT NIBM WHEN NIBM CLOSED ITS NEW YORK OFFICES LAST YEAR AND CONSOLIDATED OPERATIONS IN ALEXANDRIA HE LET MR WEYR STAY IN MANHATTAN BUT AT A PRICE MR WEYR WAS TAKEN OFF SALARY GOT A LUMPSUM RETIREMENT SETTLEMENT AND BECAME AN INDEPENDENT CONTRACTOR HE STILL IS MAKING THE 70 GRAND BUT WITHOUT FRINGE BENEFITS I AIN'T BADLY PAID FOR A WRITING JOB THE EDITOR SAYS WITH A SHRUG HERE'S ONE LAST BIT OF ADVICE FROM EXECUTIVE STRATEGIES EVERYBODY WANTS TO GET ON THE GOOD SIDE OF THE BOSS BUT ONLY THE TRULY SAVVY KNOW HOW TO DO IT ONE SECRET IS TO KNOW WHEN NOT TO TRY SEE RELATED LETTER LETTERS TO THE EDITOR FEAR AND LOATHING AS CORPORATE STRATEGY WSJ APRIL 21 1993 9303230106 9304210089 930309 HEROES OF BUSINESS TRAGIC OR NOT GET CLASSICAL TREATMENT SCHOOL COMPARES EXECUTIVES TO AGAMEMNON AND JESUS OTHER PERSONS OF RENOWN BY GARY PUTKA STAFF REPORTER OF THE WALL STREET JOURNAL ONEONTA NY THE ENGLISH KING HENRY V GAINED IMMORTALITY IN SHAKESPEARE'S PLAYS BUT NOW THANKS TO HARTWICK COLLEGE HERE HENRY'S LASTING FAME IN BUSINESS SCHOOLS IS ALSO SECURE IN THE DRAFT OF A NEW CASE STUDY HARTWICK LIKENS HENRY CONQUEROR OF FRANCE TO LEE IACOCCA REDEEMER OF CHRYSLER CORP CALL IT THE CASE OF THE KING AND MR I THERE ARE TIDY PARALLELS TO BE MADE SAYS RICHARD C BURKE COAUTHOR OF THE CASE STUDY COMMISSIONED BY HARTWICK'S HUMANITIES IN MANAGEMENT INSTITUTE BOTH LEADERS ACCORDING TO MR BURKE A PROFESSOR AT LYNCHBURG COLLEGE IN VIRGINIA ARE INNOVATIVE RISK TAKERS WITH UNCONVENTIONAL STYLES WHO PAY ATTENTION TO THE COMMON PEOPLE IN THE ENTERPRISE THEY ARE TRYING TO LEAD MAYBE SO BUT MR IACOCCA HAS NO COMMENT HE'S A PRETTY WELLREAD GUY BUT I DON'T KNOW IF HE KNOWS A DAMN THING ABOUT SHAKESPEARE SAYS A SPOKESMAN AS IF UNRULY BOARDS OF DIRECTORS IMMINENT NEW TAXES ON HIGH PAY AND PESKY PENSIONFUND INVESTORS WEREN'T ENOUGH CORPORATE CHIEFTAINS MUST NOW FACE THE HUMBLING PROSPECT OF BEING STACKED UP AGAINST TRULY EPIC HEROES AND A VILLAIN OR TWO ARMED WITH A 700000 GRANT FROM THE KELLOGG FOUNDATION HARTWICK HAS STARTED PUBLISHING AND WILL SOON BEGIN SELLING 100 CLASSIC CASE STUDIES THAT LINK EXCERPTS OF GREAT LITERATURE HISTORY AND HEROIC LEGEND WITH REAL STORIES OF MODERN CORPORATIONS AND THEIR LEADERS A CENTRAL FOCUS IS CHARACTER STRENGTHS AND FLAWS CASES IN THE HARTWICK SERIES PAIR JAMES DUTT THE EXBOSS OF BEATRICE FOODS WITH AGAMEMNON THEY SHARE LEGENDARY ANGER JOHN WELCH OF GENERAL ELECTRIC CO WITH CAPT VERE FROM BILLY BUDD ONE IS FLEXIBLE THE OTHER ISN'T AND MICHAEL R QUINLAN THE CHAIRMAN OF MCDONALD'S CORP WITH KARL VON CLAUSEWITZ THE PRUSSIAN MILITARY THEORIST BOTH ARE ORGANIZATION REFORMERS THE ARCHETYPES OF HUMAN BEHAVIOR REALLY HAVEN'T CHANGED TOO MUCH OVER THE YEARS SAYS JOHN K CLEMENS DIRECTOR OF THE HUMANITIES IN MANAGEMENT INSTITUTE WHICH HE STARTED AT HARTWICK A SMALL COLLEGE IN THE CATSKILL MOUNTAINS IN 1985 PROF CLEMENS WANTS TO EXPAND THE HORIZONS OF BUSINESS EDUCATION WHICH HAS BEEN ACCUSED LATELY OF BEING NARROW AMORAL AND WORSE INEFFECTIVE AT BOOSTING THE BOTTOM LINE CHURNING OUT 77000 MBAS A YEAR CERTAINLY ISN'T HELPING AMERICAN INDUSTRY JUDGING BY THE RESULTS SAYS PROF CLEMENS FROM HARTWICK'S VANTAGE BUSINESS SCHOOLS SPOUT TOO MANY THEORIES AND NOT ENOUGH EXAMPLES OF APPLICATIONS ESPECIALLY IN THE AREA OF PERSONAL INTERACTION FOR STUDYING HOW PEOPLE RELATE PROF CLEMENS ARGUES THE CLASSICS ARE ESPECIALLY WELL SUITED THE MODERN PARALLEL ADDS WHAT HE SEES AS THE NECESSARY RELEVANCE NAME A CHARACTER FROM A FAVORITE BOOK OR PLAY AND PROF CLEMENS CAN NAME A MODERN CORPORATE COUNTERPART COULD THERE EVER BE A REALLIFE CORDELIA THE TRUE AND DEVOTED DAUGHTER OF KING LEAR YES SAYS PROF CLEMENS CHRISTIE HEFNER CHAIRWOMAN OF PLAYBOY ENTERPRISES INC WHO ALSO WAS UNAFRAID TO OPPOSE THE ERRANT POLICIES OF HER FATHER WHOSE JIB IS CUT LIKE HEMINGWAY'S HEROIC ANTIFASCIST ROBERT JORDAN MICHAEL EISNER OF WALT DISNEY CO IN THE CLEMENSESQUE VIEW BOTH CAME TO POWER IN TRYING CIRCUMSTANCES AND ADAPTED TO THE ORGANIZATIONAL CULTURE PROF CLEMENS HAS BOOTED SOME HE USED TO REFER TO KENNETH H OLSEN THE FOUNDER OF DIGITAL EQUIPMENT CORP AS ODYSSEUS OVERCOMING EVERY BARRIER THROWN IN FRONT OF HIM UNTIL MR OLSEN'S OUSTER LAST YEAR NOW PROF CLEMENS SAYS MR OLSEN LOOKS MORE LIKE PERICLES RULER OF ATHENS WHOSE DEMISE CAME AT THE HANDS OF IMITATIVE UPSTARTS IN SPARTA MUCH LIKE MR OLSEN WAS DONE IN BY PERSONALCOMPUTER MAKERS NOT EVERYONE IS ENAMORED OF THE HARTWICK APPROACH RICHARD P VANCE A WAKE FOREST MEDICAL SCHOOL PROFESSOR WHO HAS WRITTEN CRITICALLY ABOUT THE QUALITY OF COLLEGE STUDENTS AGREES THAT THEY NEED MORE HUMANITIES A SURVEY HE DID OF WAKE FOREST BUSINESS STUDENTS LAST YEAR SHOWED ONLY 15 COULD IDENTIFY SHYLOCK 19 OUT OF 20 HAD NO IDEA WHO SIR THOMAS MORE WAS ONE STUDENT IDENTIFIED THOMAS AQUINAS THE CATHOLIC PHILOSOPHERSAINT AS A ROMAN GOD STILL DR VANCE SAYS THE HARTWICK IDEA FOR USING THE CLASSICS TENDS TO DIMINISH THEM IT DOESN'T DO TOO MUCH FOR ME ALL THAT YOU'RE DOING IS USING A CLASSICAL TEXT TO JUSTIFY A CURRENT MODEL HE SAYS THE EXCERPTS FROM GREAT WORKS USED IN THE CASES ARE ALSO NO SUBSTITUTE FOR THE UNABRIDGED VERSIONS DR VANCE INSISTS OTHER SCHOOLS SUCH AS STANFORD AND HARVARD ARE ALSO TRYING TO BRING GREAT BOOKS INTO THE BUSINESS CLASSROOM IN SOME FASHION BUT NO ONE MARRIES MAMMON TO THE MUSES QUITE THE WAY THAT PROF CLEMENS AND HARTWICK HAVE FOR HARTWICK'S BUSINESS MAJORS A COURSE IN CLASSIC CASES IS A REQUIREMENT FOR GRADUATION HARTWICK PLANS A 10000PIECE DIRECTMAIL CAMPAIGN NEXT MONTH TO SELL THE CASES TO AS MANY OTHER COLLEGES AS POSSIBLE THE HUMANITIES IN MANAGEMENT INSTITUTE ALSO SPONSORS CONFERENCES AND CERTIFIES CORPORATE CONSULTANTS TO TEACH THE CASES A BROCHURE FOR THE INSTITUTE'S NEWSLETTER PROMISES ARTICLES WITH HARDHITTING BOTTOMLINE MANAGEMENT INSIGHTS FOR DEALING WITH CORPORATE TRAVAILS CLASSICALLY SPEAKING TO WIT NINE STEPS TO TURN AROUND A TROUBLED ORGANIZATION PERFECTED BY THE SPARTAN LEADER LYCURGUS MORE THAN 3000 YEARS AGO USING SOCRATIC DIALOGUE TO CURE DULL MEETINGS ALEXANDER THE GREAT'S 2500YEAROLD ASSIMILATION POLICY AND 20THCENTURY MERGERS AND ACQUISITIONS THE HARTWICK INSTITUTE HAS LICENSED GOLIGHTLY ASSOCIATES IN ATLANTA TO USE THE CLASSIC CASES IN EXECUTIVE TRAINING AT THE ATLANTA OUTPOST OF CONFEDERATION LIFE INSURANCE CO GOLIGHTLY INSTRUCTOR JACK DONAHUE COAXES 20 MIDLEVEL MANAGERS TO COMPARE GENERAL ELECTRIC'S MR WELCH AND CAPT VERE WHO STRAINS JUSTICE IN HERMAN MELVILLE'S BILLY BUDD BY HANGING THE TITLE CHARACTER A SAILOR WHO ACCIDENTALLY KILLED A SUPERIOR OFFICER THE CASE STUDY DEPICTS MR WELCH AS INNOVATIVE AND CAPT VERE AS ONE WHO WENT BY THE BOOK TIM KNECHTEL A CONFEDERATION VICE PRESIDENT SAYS HE ADMIRES MR WELCH AS A LEADER BECAUSE HE HAS INSPIRED BETTER PERFORMANCE AT GE AND SAYS HE DOESN'T BELIEVE MR WELCH WOULD HAVE HANGED BILLY BUDD HANS VON SPAKOVSKY A CONFEDERATION LAWYER ISN'T SO SURE I THINK WELCH AND VERE ARE PRETTY MUCH ALIKE HE SAYS THEY BOTH TALK A GOOD GAME BUT IN THE END IT'S DO IT MY WAY OR NOT AT ALL MR WELCH DECLINED TO COMMENT BUT A GE SPOKESWOMAN DID REQUEST A COPY OF THE CASE STUDY THE HARTWICK CLASSICS CASE PROJECT HAS ONLY JUST BEGUN A HANDFUL OF ADDITIONAL CORPORATE/LITERARY ODD COUPLES HAVE BEEN JOINED INCLUDING ROSS PEROT AND WILLIE STARK THE SLY POPULIST FROM ALL THE KING'S MEN WHO HIMSELF WAS BASED ON LOUISIANA'S HUEY LONG AND MALCOLM X AND SAM WALTON THE LATE FOUNDER OF WALMART STORES INC BOTH LEADERS WHO MADE GOOD USE OF THEIR CHARISMA BUT CURRENT PERSONALITIES HAVE YET TO BE CHOSEN AS MATCHES FOR ADOLF HITLER ANTIGONE ANTONY AND CLEOPATRA FAUST AND OTHERS ONE OF THE MOST DAUNTING TASKS IN THE PROJECT WENT TO GARY HERRION A HARTWICK PROFESSOR OF RELIGION FOR THE CASE STUDY HE IS COWRITING PROF HERRION WAS CALLED UPON TO CHOOSE A MODERNDAY BUSINESS ANALOGY FOR JESUS HE AND HIS COAUTHOR CHOSE A DUO BEN COHEN AND JERRY GREENFIELD FOUNDERS OF BEN & JERRY'S HOMEMADE INC ICE CREAM PURVEYORS WHO AIM TO MANAGE BY THE GOLDEN RULE WE'RE DEEPLY FLATTERED SAYS MR COHEN BEN & JERRY'S SUCCESS IS A TESTAMENT TO THE HUMAN SPIRIT BUT I DON'T KNOW IF THAT FALLS UNDER THE MIRACULOUS MR COHEN IS WILLING TO COMPARE HIMSELF TO HIS SUPPOSED ANCIENT COUNTERPART ONLY SO FAR IT IS TRUE THAT WE BOTH HAVE BEARDS SEE RELATED LETTER LETTERS TO THE EDITOR SAME OLD CHARACTERS DOWN THROUGH HISTORY WSJ APRIL 21 1993 9303090062 9304200174 930420 BELL ATLANTIC UNIT TOLD TO PAY 11 MILLION TO FORMER SALES AGENT WASHINGTON A JURY HERE AWARDED A FORMER SALES AGENT FOR BELL ATLANTIC MOBILE SYSTEMS INC 11 MILLION AFTER FINDING THE CELLULAR UNIT OF BELL ATLANTIC CORP BREACHED A CONTRACT AND COMMITTED FRAUD THE SALES AGENT ROBERT H KRESSIN OPERATED NOWDEFUNCT CELLULAR PHONE STORES LP WHICH SOLD AND LEASED BELL ATLANTIC'S CELLULAR TELEPHONE EQUIPMENT AND MARKETED ITS CELLULAR PHONE SERVICE FOR FIVE YEARS UNTIL 1990 AT ONE TIME MR KRESSIN EMPLOYED 60 PEOPLE THE LAWSUIT WHICH HAD SOUGHT 50 MILLION IN COMPENSATORY DAMAGES AND 200 MILLION IN PUNITIVE DAMAGES FOR EACH OF FOUR COUNTS ALLEGED THAT BELL ATLANTIC PROVIDED OTHER SALES AGENCIES WITH BETTER COMPENSATION PACKAGES AND WITHHELD COMMISSIONS AND INVENTORY AN ADDITIONAL 50 MILLION FOR COMPENSATORY DAMAGES FOR ALLEGED NEGLIGENCE WAS ALSO SOUGHT THE AWARD WAS MADE BY A DISTRICT OF COLUMBIA SUPERIOR COURT JURY A SPOKESMAN FOR BELL ATLANTIC MOBILE SAID THE COMPANY WILL FILE MOTIONS WITH THE TRIAL COURT TO HAVE THE VERDICT SET ASIDE BECAUSE IT WAS NOT SUPPORTED BY EVIDENCE PRESENTED AT THE TRIAL IF THAT'S NOT SUCCESSFUL THE SPOKESMAN SAID BELL ATLANTIC WILL APPEAL THE 11 MILLION HE SAID IS NOT A NUMBER BASED ON REALITY MR KRESSIN'S LAWYER STEPHEN L SNYDER OF SNYDER & ASSOCIATES OF BALTIMORE SAID BELL ATLANTIC HAD TREATED THE CASE AS A NUISANCE SUIT AND OFFERED TO SETTLE FOR 51000 JUST BEFORE THE TRIAL BEGAN TROUBLES BETWEEN THE TWO COMPANIES BEGAN SHORTLY AFTER BUSINESS CONTRACTS WERE SIGNED IN 1985 IN ITS COMPLAINT AGAINST BELL ATLANTIC CPS WHICH WAS BASED IN GERMANTOWN MD SAID IT FILED FOR PROTECTION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE IN 1986 TO STOP BELL ATLANTIC FROM SEIZING ITS INVENTORY OF UNSOLD BELL ATLANTIC PHONES CPS CLOSED IN 1990 9304200173 930420 HEARD ON THE STREET KINDERCARE IS A NEW TOY FOR THE BULLS BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL AMONG INVESTORS KINDERCARE LEARNING CENTERS TENDS TO EVOKE UNPLEASANT MEMORIES OF A DEBTRIDDEN CHILDCARE COMPANY THAT RAN AMOK INTO OFFBEAT VENTURES SUCH AS RUNNING A SAVINGSANDLOAN FIRM BUT NOW SOME INVESTORS WITH A TASTE FOR RISK SAY THERE'S A GOOD LONGTERM BET IN THE REORGANIZED KINDERCARE WHICH RECENTLY EMERGED FROM BANKRUPTCY COURT NO MATTER HOW WELL NEW SHAREHOLDERS DO THEY PROBABLY WON'T DO AS WELL AS THE TWO SOCALLED VULTURE INVESTORS THAT CURRENTLY OWN 45 OF THE STOCK DICKSTEIN & CO BASED IN NEW YORK AND TRUST CO OF THE WEST THE LOS ANGELESBASED MONEY MANAGER THESE INVESTORS NEARLY TRIPLED THEIR MONEY IN A LITTLE MORE THAN A YEAR BUT THE BULLS CAN STILL MAKE A CASE THEIR THEORY AFTER BEING FORCED TO STAND IN THE CORNER KINDERCARE NOW IS READY TO STICK TO ITS HOMEWORK AND FOCUS ON ITS MAIN BUSINESS OF RUNNING DAYCARE CENTERS BASED IN MONTGOMERY ALA THE COMPANY IS THE LARGEST OPERATOR OF DAYCARE CENTERS WITH 1200 LOCATIONS IN 39 STATES OVERSEEING 141000 CHILDREN ITS MAIN COMPETITOR LA PETITE ACADEMY HAS AGREED TO BE PURCHASED BY MANAGERS ALONG WITH THE NEW YORK INVESTMENT FIRM VESTAR CAPITAL PROPERTIES IN A LEVERAGED BUYOUT THIS WILL LEAVE KINDERCARE AS THE ONLY PURE STOCK PLAY IN CHILD CARE ENTER THE BULLS BANKRUPTCY AND REORGANIZATION ANALYSTS AT DABNEY/RESNICK & WAGNER IN LOS ANGELES AND NEW YORK'S DELAWARE BAY CO ALL HAVE ISSUED BULLISH REPORTS IN THE PAST FEW WEEKS THE NEW SHARES STARTED TRADING APRIL 1 ON A WHENISSUED BASIS VALUED AT 10 IN THE COMPANY'S DISCLOSURE STATEMENT THEY LEAPED TO TRADE AT 17 ON THEIR FIRST TRADING DAY YESTERDAY THE STOCK CLOSED AT 15 1/2 UP 1/4 ON THE DAY THE STOCK IS ALREADY TRADING AT AROUND 17 TIMES NEXT YEAR'S COMPANYPROJECTED EARNINGS ITS PROGRESS DEPENDS HEAVILY ON HOW WELL THE COMPANY FARES WITH THE SECOND STAGE OF ITS RESTRUCTURING KINDERCARE PROJECTS THAT IT WILL BE ABLE TO GROW REVENUE AT LEAST 8 AND OPERATING PROFIT 12 ANNUALLY AFTER A MORE MODEST PROJECTED IMPROVEMENT IN ITS FIRST YEAR OUT OF BANKRUPTCY COURT MANAGEMENT COUNTS ON BOOSTING ADMISSION PRICES AND OCCUPANCY NOW NEARING 75 AFTER LANGUISHING NEAR 70 FOR SEVERAL YEARS THE CURRENT WEEKLY COST IS ABOUT 120 DEPENDING ON LOCATION KINDERCARE IS OFF TO A GOOD START FOR THE FIRST TIME IN YEARS IT CAME NEAR TO MEETING ITS GOALS IN THE QUARTER PRECEDING ITS EMERGENCE FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS WHICH PROTECT A COMPANY FROM CREDITORS WHILE IT WORKS OUT A DEBTPAYMENT PLAN THE NEXT STEP WILL BE TO OBTAIN LENDER BANKS' PERMISSION TO REFINANCE 86 MILLION OF 12 DEBT ISSUED AS PART OF THE RESTRUCTURING SINCE THE BONDS ARE HELD BY SHAREHOLDERS THAT CONTROL THE COMPANY REFINANCING IS LIKELY BUT CRITICAL TO KINDERCARE'S FUTURE WILL BE A BUSINESS IT HAS YET TO ENTER MANAGING ONSITE DAYCARE CENTERS FOR CORPORATIONS BY JUNE 1995 THE COMPANY EXPECTS TO HAVE 30 SUCH CENTERS COMPARED WITH A HANDFUL TODAY AT THE SAME TIME THE COMPANY PLANS TO CONTINUE OPENING TRADITIONAL DAYCARE CENTERS AT A RAPID CLIP FUNDING THIS EXPANSION WILL BE TRICKY THE COMPANY'S AGREEMENT WITH CREDITORS LIMITS CAPITAL EXPENDITURES SEVERELY TO 38 MILLION OVER THE NEXT 18 MONTHS ABOUT HALF THE RATE THE COMPANY HAD INVESTED BEFORE REORGANIZATION AT ROUGHLY 1 MILLION PER SITE INTERNALLY GENERATED FUNDS CLEARLY WON'T SUFFICE INSTEAD THE COMPANY INTENDS TO REVIVE A STRATEGY THAT HELPED GET IT INTO TROUBLE THREE YEARS AGO SELLING THE CENTERS TO LOCAL INVESTORS AND LEASING THEM BACK INDEED IT WAS THE COMPANY'S INABILITY TO COMPLETE MORE SALE/LEASEBACKS THAT FORCED IT TO BEGIN NEGOTIATING WITH CREDITORS IN LATE 1990 THE SALE/LEASEBACK DEALS HAD BEEN THE LINCHPIN OF A PLAN TO REPAY SENIOR BANK LENDERS WHO WERE CONCERNED ABOUT THE HEFTY DEBT THEN ON THE COMPANY'S BOOKS MEANWHILE THE VULTURES HAVE ALREADY MADE A KILLING DICKSTEIN AND TRUST CO OF THE WEST ALONG WITH CARGILL FINANCIAL SERVICES A SUBSIDIARY OF THE MINNEAPOLISBASED TRADING GIANT BEGAN ACCUMULATING BANK DEBT ABOUT 15 MONTHS AGO AT PRICES AS LOW AS 50 CENTS ON THE DOLLAR BY THEN THE RESTRUCTURING TALKS HAD BEEN STALLED FOR A YEAR AND MOST OF THE BANKS LOSING PATIENCE WERE READY TO BAIL OUT BY SELLING THEIR HOLDINGS IN THE MARKET FOR DISTRESSED BANK DEBT AT VASTLY DEPRESSED PRICES THE VULTURES WHO EVENTUALLY ACCUMULATED TWOTHIRDS OF THE BANK DEBT PROPOSED A NOVEL TWOTIER RESTRUCTURING PLAN IN SPRING 1992 ALONG WITH SOME CASH THE BANKS WOULD GET LOWCOUPON FLOATINGRATE PAPER THAT WOULD JUST ABOUT MAKE THEM WHOLE THE VULTURES VOLUNTEERED TO TAKE LESS CASH AND DEBT WITH A HEFTY 12 COUPON IN EXCHANGE FOR 85 OF THE STOCK THE BANKS STYMIED AFTER A YEAR OF FRUITLESS TALKS AND EAGER TO AVOID SHOWING A LOSS COULDN'T WAIT TO SIGN ON THEY WOULD HAVE DONE BETTER TO TAKE THEIR TIME SHORTLY AFTER THE COMPANY FILED ITS PREAPPROVED REORGANIZATION PLAN WITH A FEDERAL BANKRUPTCY COURT IN ALABAMA ON NOV 10 1992 THE COMBINATION OF 12 DEBT PLUS STOCK QUICKLY TRADED AS HIGH AS 150 CENTS ON THE DOLLAR WHILE THE BANKS' DEBT HOVERED AT 95 THAT MEANS THE VULTURE INVESTORS JUST ABOUT TRIPLED THEIR MONEY WHILE THE BANKS HAVEN'T FULLY RECOVERED THEIRS BUT THERE WAS NO GOING BACK FOR THE BANKERS DICKSTEIN AND TRUST CO OF THE WEST HAD OBTAIN A FIRM AGREEMENT FROM THE BANKS WHICH INCLUDE TORONTO DOMINION AND CITIBANK TO BACK THE RESTRUCTURING THIS DEAL WORKED OUT VERY WELL SAID MARK DICKSTEIN WHO RUNS DICKSTEIN & CO INDEED MAKING MONEY IN KINDERCARE COULD TURN OUT TO BE CHILD'S PLAY FOR EVERYONE EXCEPT OF COURSE THE ORIGINAL CREDITORS YEAR ENDED JAN 1 1993 COMPANY PROJECTED RESULTS FOR YEAR THROUGH JUNE 3 1994 AVERAGE DAILY TRADING VOLUME POPULARITY CAN BE DANGEROUS IN THE STOCK MARKET CONSIDER WHAT HAPPENED TO THE POPULAR STOCKS MENTIONED IN THIS COLUMN MARCH 6 1992 IN A RIVEL RESEARCH GROUP POLL 200 MONEY MANAGERS WERE ASKED TO NAME THREE OR FOUR STOCKS THEY THOUGHT WOULD DO BEST OVER 12 MONTHS OF THE DOZEN VOTED MOST LIKELY TO SUCCEED NINE DECLINED IN A RISING MARKET AT THAT MOST POPULAR WAS PHILIP MORRIS WITH 17 OF VOTERS FAVORING IT HARDHIT BY LOWPRICED GENERIC CIGARETTES THE COMPANY HAS SINCE CUT THE PRICE OF ITS FLAGSHIP MARLBORO BRAND AS INVESTORS BRACE FOR A POSSIBLE SINTAX INCREASE PHILIP MORRIS HAS FALLEN 35 SINCE THE POLL WAS PUBLISHED MERCK WHICH RANKED SECOND WITH TRIBUTES FROM 11 OF THOSE VOTING HAS DIVED 28 THIRDRANKED GLAXO IS DOWN 35 FOURTHRANKED BRISTOLMYERS SQUIBB IS DOWN 24 AND FIFTHRANKED BOEING HAS FALLEN 20 ELI LILLY WASTE MANAGEMENT AMGEN AND COCACOLA ALSO HAVE DECLINED WALMART STORES EKED OUT A 1 GAIN ONLY TWO OF THE 12 FAVORITES DID REALLY WELL FEDERAL NATIONAL MORTGAGE ASSOCIATION ROSE 30 INTEL IS AHEAD 57 EVEN AFTER YESTERDAY'S BIG SLIDE LAST YEAR'S COLUMN OBSERVED EXXON IS SITTING HOME DATELESS ON SATURDAY NIGHT THE OIL GIANT GOT NO VOTES BUT ITS STOCK HAS RISEN 22 HOW COULD THE MANAGERS MISS BY SO MUCH IF LOTS OF MONEY MANAGERS LIKE A STOCK MANY ALREADY OWN IT THAT LIMITS POTENTIAL DEMAND AND CAN SET THE STAGE FOR A SELLING STAMPEDE IF THE STOCK DISAPPOINTS INSTITUTIONS WHICH ARE EASILY DISAPPOINTED THESE DAYS THE PAST 13 1/2 MONTHS' CARNAGE AMONG INSTITUTIONAL FAVORITES ISN'T NECESSARILY TYPICAL LONGFAVORED GROWTH STOCKS DON'T BITE THE DUST EVERY YEAR STILL THE FATE OF THE PET STOCKS IN THE RIVEL STUDY IS A REMINDER TO INVESTORS WHEN EVERYBODY SEEMS TO LIKE A STOCK IT'S EASY TO GET TRAMPLED IF THERE'S A RUSH TO THE EXIT 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 9304200172 930420 INTERNATIONAL STRONGER YEN HURTS JAPAN'S BID TO REBOUND BY CLAY CHANDLER AND JOHN BUSSEY STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO THE RELENTLESS STRENGTHENING OF THE YEN HAS HEAPED YET ANOTHER BURDEN ON JAPAN'S BELEAGUERED ECONOMY JUST AS IT SEEMED TO BE SHOWING SIGNS OF STRENGTH THE YEN WHICH REACHED A NEW POSTWAR RECORD OF 11075 TO THE DOLLAR YESTERDAY HAS APPRECIATED 11 SINCE THE YEAR BEGAN PROMPTING SOME ECONOMISTS TO WARN THAT JAPAN'S ECONOMIC RECOVERY COULD BE DELAYED THE CURRENCY WAS QUOTED IN LATE TRADING IN TOKYO YESTERDAY AT 111 YEN TO THE DOLLAR AND WAS QUOTED IN LATE NEW YORK TRADING AT 11113 TO THE DOLLAR SEPARATELY JAPAN'S CENTRAL BANK SAID THE NATION'S MONEY SUPPLY CONTRACTED IN MARCH PARTLY A RESULT OF THE RISING YEN A JAPANESE NEWS SERVICE SAID JAPAN WILL ASK THE GROUP OF SEVEN INDUSTRIALIZED NATIONS AT A MEETING LATER THIS MONTH TO COOPERATE IN THE FOREIGNEXCHANGE MARKETS TO SLOW THE YEN'S CLIMB THE BANK OF JAPAN HAS BOUGHT ABOUT 15 BILLION THIS MONTH TO STEM THE YEN'S RISE ACCORDING TO THE REPORT MOST ANALYSTS HOWEVER BELIEVE JAPAN HAS BEEN ACTING ALONE TO SLOW THE CURRENCY'S APPRECIATION AND THEREFORE HAS HAD LIMITED EFFECT JAPAN CAN LIVE WITH THE YEN AT ITS CURRENT LEVEL SAID JAMES VESTAL AN ECONOMIST AT BARCLAYS DE ZOTE WEDD SECURITIES JAPAN LTD INDEED MANY JAPANESE BUSINESSES SAY THEY HAVE LEARNED TO COPE WITH THE STRENGTHENING CURRENCY OVER THE YEARS BUT SOME SAY THEY ARE REACHING THEIR THRESHOLD OF PAIN MR VESTAL FOR ONE BELIEVES THAT IF THE YEN STRENGTHENS BEYOND 110 YEN WHICH SEVERAL ECONOMISTS SAY IS POSSIBLE THE NATION'S RECOVERY COULD BE DELAYED BY AS MUCH AS SIX MONTHS A STRONGER YEN HELPS SOME JAPANESE COMPANIES BY LOWERING THE COST OF IMPORTS BUT IT HURTS EXPORTERS BY MAKING THEIR PRODUCTS EXPENSIVE IN DOLLAR TERMS SQUEEZING SALES AND PROFITS ABROAD THERE WAS WORRISOME EVIDENCE THAT THE JAPANESE ECONOMY MAY BE MORE FRAGILE THAN ECONOMISTS HAD THOUGHT THE CENTRAL BANK SAID THE MONEY SUPPLY WHICH HAD RISEN IN FEBRUARY FOR THE FIRST TIME IN SIX MONTHS CONTRACTED BY 03 IN MARCH DEFYING WIDESPREAD EXPECTATIONS OF CONTINUED IMPROVEMENT ECONOMISTS REGARD GROWTH IN THE MONEY SUPPLY TO BE AN IMPORTANT LEADING INDICATOR OF ECONOMIC ACTIVITY THE INCREASE IN THE FEBRUARY MONEY SUPPLY PROMPTED MANY PRIVATE ECONOMISTS TO PREDICT THAT ECONOMIC RECOVERY WAS IN SIGHT BANK OF JAPAN OFFICIALS SAID MARCH'S WEAK MONEY SUPPLY NUMBERS REFLECTED THE APPRECIATION OF THE YEN RATHER THAN A DETERIORATION IN ECONOMIC CONDITIONS THE STRONGER YEN REDUCED THE MONEY SUPPLY BY DIMINISHING THE VALUE OF JAPANESE BANKS' FOREIGN CURRENCY DEPOSITS THE BANK SAID THE DROP IN THE MONEY SUPPLY IS PROBABLY A DISTORTION RATHER THAN A REAL INDICATION OF WHAT'S HAPPENING TO THE ECONOMY AGREED ROBERT FELDMAN AN ECONOMIST WITH SALOMON BROTHERS ASIA LTD BUT SOME ECONOMISTS WERE SKEPTICAL FOREIGN CURRENCY DEPOSITS ACCOUNT FOR ONLY 64 TRILLION YEN 5759 BILLION OR ABOUT 13 OF JAPAN'S MONEY SUPPLY ACCORDING TO MERRILL LYNCH JAPAN INC ECONOMIST PETER MORGAN HE SAYS THE STRONGER YEN EXPLAINS ONLY ABOUT A FIFTH OF THE MONEY SUPPLY DECLINE THIS IS DEFINITELY WEAKER THAN I WAS LOOKING FOR SAID MR MORGAN REFERRING TO THE DROP IN THE MONEY SUPPLY WE ARE PERHAPS SEEING AN EARLY SIGN OF A DOUBLE DIP OR A BRIEF PICKUP IN ECONOMIC ACTIVITY THAT GIVES WAY TO A SECOND CONTRACTION MANY ECONOMISTS BELIEVE THE CONTINUED APPRECIATION OF THE JAPANESE CURRENCY PLACES GREATER PRESSURE ON THE CENTRAL BANK TO LOWER THE OFFICIAL DISCOUNT RATE THE RATE IT CHARGES ON LOANS TO PRIVATE BANKS THE DISCOUNT RATE CURRENTLY STANDS AT 25 MATCHING ITS RECORD LOW THE YEN JUMPED TO A NEW HIGH FOLLOWING WEEKEND REMARKS BY PRESIDENT CLINTON THAT A STRONGER YEN WOULD HELP CURB JAPAN'S TRADE SURPLUS WITH THE US ECONOMISTS THINK THE SURPLUS IS HEADED FOR ANOTHER RECORD THIS YEAR 9304200171 930420 DRESSER BAKER HUGHES AGREE TO SETTLE SUIT WITH PARKER & PARSLEY DALLAS DRESSER INDUSTRIES INC AND BAKER HUGHES INC OF HOUSTON AGREED TO SETTLE LITIGATION WITH PARKER & PARSLEY PETROLEUM CO FOR 115 MILLION DRESSER AND BAKER HUGHES WILL EACH PAY EQUAL AMOUNTS OF THE SETTLEMENT WHICH IS SUBJECT TO BOARD APPROVALS DRESSER SAID THE SETTLEMENT WILL REDUCE FISCAL 1993 NET INCOME BY 24 MILLION OR 18 CENTS A SHARE WHICH EXCLUDES AN ALREADY ESTABLISHED 20 MILLION RESERVE IN THE 1992 FISCAL YEAR ENDING OCT 31 THE COMPANY EARNED 346 MILLION OR 26 CENTS A SHARE WHICH EXCLUDES ACCOUNTING CHARGES AND SPECIAL ITEMS OF ABOUT 400 MILLION OR244 CENTS A SHARE THE ENGINEERING PETROLEUM SERVICES COMPANY SAID IT IS CURRENTLY IN LITIGATION WITH ITS INSURANCE COMPANY REGARDING COVERAGE FOR THE SETTLEMENT GIVEN AN ESTABLISHED RESERVE AND ITS INSURANCE BAKER HUGHES SAID THE SETTLEMENT WILL HAVE NO SIGNIFICANT EFFECT ON EARNINGS BUT SHOULD BAKER HUGHES NOT REACH AN AGREEMENT WITH INSURERS IT ANTICIPATES TAKING A CHARGE TO ITS SECOND QUARTER ENDING MARCH 31 WHICH WILL NOT EXCEED 25 MILLION IN LAST YEAR'S SECOND QUARTER THE PETROLEUM SERVICES COMPANY EARNED 182 MILLION OR 13 CENTS A SHARE MOST OF THE SETTLEMENT GOES TO WORKING INTEREST OWNERS AND INVESTORS OF A DRILLING PARTNERSHIP OF WHICH PARKER & PARSLEY IS NOW THE GENERAL PARTNER SAID A SPOKESMAN FOR PARKER & PARSLEY MIDLAND TEXAS THE PREVIOUS GENERAL PARTNER SOUTHMARK CORP DALLAS WILL RECEIVE 20 OF THE SETTLEMENT WHEN SOUTHMARK SOLD PARKER & PARSLEY IT RETAINED THE RIGHTS TO THE LITIGATION SOUTHMARK IS CURRENTLY LIQUIDATING ITS ASSETS IN ACCORDANCE WITH A COURT APPROVED CHAPTER 11 REORGANIZATION PLAN 9304200169 930420 INTERNATIONAL HONG KONG TELECOM AND CABLE & WIRELESS PLAN ASIAN VENTURE SPECIAL TO THE WALL STREET JOURNAL LONDON CABLE & WIRELESS PLC AND HONG KONG TELECOMMUNICATIONS LTD SAID THEY INTEND TO ESTABLISH A JOINT VENTURE TO INVEST IN TELECOMMUNICATIONS PROJECTS IN CHINA AND OTHER PARTS OF ASIA C&W SAID IT WOULD HAVE A 51 STAKE IN THE NEW VENTURE WITH HONG KONG TELECOM HOLDING THE REMAINING PORTION C&W HOLDS A 584 STAKE IN HONG KONG TELECOM THE INITIAL CAPITAL BEING INVESTED IS NOMINAL A C&W SPOKESMAN SAID ADDING THAT FURTHER INVESTMENT WILL DEPEND UPON THE PARTICULAR PROJECT BEING CONSIDERED THE VENTURE WHICH IS IN THE PROCESS OF BEING REGISTERED DOES NOT YET HAVE A NAME HONG KONG TELECOM WHICH IS ALREADY WELL ESTABLISHED IN THE REGION IS LIKELY TO PROVIDE MANAGEMENT AND TECHNICAL RESOURCES A SPOKESMAN SAID 9304200168 930420 INDUSTRY FOCUS POWER GLUT JOLTS NORTHEASTERN ELECTRICITY PRODUCERS LARGE UTILITIES BUY OUT CONTRACTS WITH INDEPENDENTS TO REDUCE COSTS BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL SYRACUSE NY TOO MUCH OF ANYTHING CAN BE BAD AND IN THE NORTHEAST TOO MUCH ELECTRICITY IS BURNING UP THE INDEPENDENT POWER INDUSTRY A FLAT ECONOMY AND A BOOM OF NONUTILITY ELECTRICITY GENERATION HAS CREATED A POWER GLUT PRIMARILY IN THE NORTHEAST AND IN CALIFORNIA AND WITH RIVAL FORMS OF ENERGY LIKE GAS AND OIL AT RELATIVELY LOW PRICES ELECTRICITY IS NOW SELLING FOR AS LITTLE AS TWO CENTS A KILOWATTHOUR ON THE WHOLESALE SPOT MARKET BUT UTILITIES THE PRIMARY RETAILERS OF ELECTRICITY CAN'T TAP AS MUCH OF THAT INEXPENSIVE SPOT MARKET AS THEY WOULD LIKE INSTEAD THEY ARE LOCKED INTO LONGTERM CONTRACTS AT CLOSER TO SIX CENTS A KILOWATTHOUR WITH THE UPSTARTS OF THE ELECTRICITY INDUSTRYNONUTILITY GENERATORS HOPING TO EXPAND THE POWERSUPPLY MARKET IN THE US FEDERAL REGULATIONS IN 1978 ALLOWED NONUTILITY COMPANIES TO BUILD POWER PLANTS AND SELL ELECTRICITY TO UTILITIES USING GASFIRED COGENERATION HYDROELECTRIC AND OTHER FORMS OF POWER GENERATION INDEPENDENTLY PRODUCED POWER NOW PROVIDES ABOUT 4 OF ALL UTILITIES' POWER NEEDS SOME STATE REGULATORS ENCOURAGED UTILITIES TO SIGN CONTRACTS WITH NONUTILITY GENERATORS IN THE 1980S TO HELP JUMPSTART THE INDEPENDENT POWER INDUSTRY BUT THE CONTRACTS HAVE BECOME LESS AND LESS ECONOMICAL AS ELECTRICITY PRICES HAVE DROPPED NOW INVESTOROWNED UTILITIES FIND THEMSELVES WAGING A CONCERTED BATTLE TO CLEAN NONUTILITY POWER FROM THEIR BOOKS THE OVERDEVELOPMENT OF NONUTILITY GENERATORS AND EXCESS POWER IS A PROBLEM IN THE WEST BECAUSE OF THEIR RECESSION AND THE BIG DROP IN NATURAL GAS PRICES AGREES BARRY ABRAMSON UTILITIES ANALYST FOR PRUDENTIAL SECURITIES INC BUT THE SURPLUS POWER PROBLEM IS FAR MORE EXTENSIVE IN THE NORTHEAST BIG UTILITIES HAVE HAD SOME SUCCESS IN GETTING REGULATORY AND POLITICAL MUSCLE BEHIND EFFORTS TO INDUCE NONUTILITY POWER COMPANIES TO RENEGOTIATE THEIR CONTRACTS IN THE PAST FEW MONTHS SEVERAL NONUTILITY PRODUCERS HAVE AGREED TO SHUT DOWN CONSTRUCTION OF POWER PLANTS AND HAVE THEIR CONTRACTS BOUGHT OUT OR HAVE AGREED TO RENEGOTIATE POWERSUPPLY AGREEMENTS THE TREND IS EVEN RAISING QUESTIONS ABOUT THE FINANCIAL VIABILITY OF SOME INDEPENDENT PRODUCERS WHO HAVE RELIED ON PUBLIC FINANCING WE'RE IN A REAL TURF BATTLE OUT HERE SAYS CAROL E MURPHY EXECUTIVE DIRECTOR OF THE INDEPENDENT POWER PRODUCERS OF NEW YORK A TRADE ORGANIZATION FOR NEW YORK'S NONUTILITY GENERATORS SEVERAL OF THE LARGER INVESTOROWNED UTILITIES ARE DOING EVERYTHING THEY CAN TO BREAK US NONUTILITY GENERATORS MAY NOT BE BREAKING BUT SOME ARE CERTAINLY BENDING CENTRAL MAINE POWER CO WHICH ALREADY TAKES 38 OF ITS POWER FROM NONUTILITY GENERATORS BOUGHT OUT TWO INDEPENDENT POWER SUPPLY CONTRACTS IN FEBRUARY FOR 11 MILLION CEASING THEIR CONSTRUCTION OF PLANTS THE AUGUSTA MAINE COMPANY HAS PAID 23 MILLION TO BUY OUT CONTRACTS AND MAY SPEND AS MUCH AS 22 MILLION MORE TO PURCHASE TWO OTHER CONTRACTS THE UTILITY ALSO KILLED A DEAL AFTER A CONTRACTOR FAILED TO MEET A CONTRACTUAL MILESTONE IN THE PAST FEW YEARS WE'VE HAD AN ENORMOUS RUNUP IN COSTS AND PART OF THAT REASON IS THAT WE FIND OURSELVES WITH VERY EXPENSIVE INDEPENDENT POWER CONTRACTS SAYS MARK ISHKANIAN DIRECTOR OF PUBLIC AND EMPLOYEE COMMUNICATIONS AT CENTRAL MAINE POWER MR ISHKANIAN SAID THE RECENT BUYOUTS WOULD SAVE CENTRAL MAINE 44 MILLION OVER THE NEXT FOUR YEARS IN FUEL COSTS THE MOST INTENSE CONFRONTATIONS BETWEEN NONUTILITY GENERATORS AND UTILITIES ARE OCCURRING IN NEW YORK NEW YORK STATE ELECTRIC & GAS CORP BINGHAMTON NY BOUGHT AND CANCELED A CONTRACT FOR A COGENERATION POWER PLANT IN CORNING NY FOR ABOUT 34 MILLION IN DECEMBER NIAGARA MOHAWK POWER CORP SYRACUSE NY REACHED A SETTLEMENT EARLY THIS MONTH WITH FIVE INDEPENDENT PROJECTS THAT WILL SAVE AS MUCH AS 200 MILLION IN THE NEXT 25 YEARS THROUGH A REDUCED PURCHASE OF ELECTRICITY THE SUCCESSFUL EFFORTS BY UTILITIES TO REDRAW OLD CONTRACTS HAVE THREATENED THE ALREADY FLIMSY FINANCING SECURED BY NONUTILITY GENERATORS IN A RECENT REPORT ON INDEPENDENT POWER STANDARD & POOR'S CORP SAID FINANCING REMAINS RELATIVELY RISKY AND LIKELY BE RATED BELOW INVESTMENT GRADE PARTLY BECAUSE OF AGGRESSIVE LEVERAGE AND QUESTIONABLE OPERATING PERFORMANCE SEVERAL OF THE NONUTILITY CONTRACTS IN NEW YORK FIX THE COST OF FUEL FOR THE NONUTILITY GENERATOR AND THE COST OF ELECTRICITY SALES TO THE UTILITY SUCH A FIXED REVENUE STREAM MAKES FINANCING RELATIVELY EASY BUT RESTRUCTURING PROPOSALS HAVE ALARMED FINANCING GROUPS STILL NONUTILITY GENERATORS BELIEVE THE ELECTRIC UTILITIES ARE OVERSTATING A SHORTTERM PROBLEM IN ORDER TO PROTECT THEIR OWN ELECTRICITY GENERATING CAPACITY INDEPENDENT POWER PRODUCERS CONTEND THAT THEIR NEWER FACILITIES BURN CLEANER AND MORE EFFICIENTLY MOREOVER THEY SAY THE POWER GLUT IS ONLY A MATTER OF PERCEPTION TODAY THERE MAY BE TOO MUCH POWER PERHAPS EVEN INTO NEXT YEAR THAT WILL BE THE CASE SAYS JOHN D'ALESSANDRO OF NONUTILITY GENERATOR INTERPOWER CORP LATHAM NY BUT THAT WON'T LAST FOREVER WHEN THE ECONOMY IMPROVES NIAGARA MOHAWK AND OTHERS WILL NEED TO FIND MORE POWER THE ELECTRIC UTILITIES ARGUE THAT THE POWER GLUT WILL CONTINUE AND PRICES WILL REMAIN LOW NIAGARA MOHAWK SAYS IT HAS ALREADY TRIMMED ABOUT 10 OF ITS OWN GENERATING CAPACITY AND INSISTS NEW CONSTRUCTION WON'T BE NEEDED UNTIL AFTER THE YEAR 2000 PART OF NEW YORK'S CURRENT SURPLUS POWER WOES STEMS FROM THE STATE'S SIXCENT LAW MEANT TO ENCOURAGE THE FLEDGLING NONUTILITY GENERATING INDUSTRY STATE LAWMAKERS SET A MINIMUM PRICE OF SIX CENTS A KILOWATTHOUR FOR MOST NONUTILITY POWER CONTRACTS WHEN THE STATE'S SIXCENT LAW WAS REPEALED IN MID1992 NIAGARA MOHAWK ALREADY HAD 3300 MEGAWATTS OF ELECTRICITY UNDER CONTRACT FROM NONUTILITY GENERATORS MORE THAN ENOUGH TO SUPPLEMENT THE 5300 MEGAWATTS IT GENERATED FOR ITSELF REPEAL OF THE SIXCENT LAW ALLOWED IT TO END NEGOTIATIONS ON 6000 ADDITIONAL MEGAWATTS OF POWER FROM INDEPENDENTS AT PEAK LOAD THE UPSTATE UTILITY PROVIDES ABOUT 6300 MEGAWATTS OF POWER THOUGH IT MUST KEEP A RESERVE CLOSER TO ABOUT 7400 MEGAWATTS ON ITS GRID FOR SUCH TIMES NIAGARA MOHAWK CLAIMS IT STILL MUST MAKE 345 MILLION IN EXCESS PAYMENTS TO NONUTILITY GENERATORS THIS YEAR SEVERAL ANALYSTS SUSPECT THAT THE CURRENT TRIBULATIONS IN THE INDEPENDENT POWER MARKET MAY WEED OUT SMALLER POWER PRODUCERS THE STRONG INDEPENDENT POWER PRODUCERS PROBABLY WILL BE JOINED BY THE WELLCAPITALIZED INDEPENDENT POWER SUBSIDIARIES OF UTILITIES AS SURVIVORS I THINK WE'RE IN THE MIDST OF A BUBBLE WHERE ENERGY IS RELATIVELY INEXPENSIVE AND SEVERAL UTILITIES ARE TIED INTO LONGTERM FIXEDCOST EXPENSIVE CONTRACTS SAYS JEFF BODINGTON HEAD OF BODINGTON & CO A SAN FRANCISCO FIRM THAT OFFERS COUNSEL AND FINANCIAL ADVICE TO NONUTILITY GENERATORS TODAY UTILITIES ARE FAR MORE RELUCTANT TO SIGN FIXEDPRICE CONTRACTS UNTIL WE GET THROUGH THIS BUBBLE OF HIGHER PRICED CONTRACTS YOU'LL SEE CONTINUED PRESSURE ON THE INDEPENDENT POWER SUPPLIERS FROM THE UTILITIES 9304200167 930420 THE MAGAZINE'S NORMAL COVERAGE DOESN'T EXTEND TO BOTTOM LINES BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL THE COVER OF CONDE NAST TRAVELER MAGAZINE PROCLAIMS TRUTH IN TRAVEL BUT THE MAGAZINE'S EXPERIMENT WITH THE NAKED TRUTH HAS LEFT SOME READERS HOWLING TRAVELER'S APRIL COVER HEADLINES THE GREAT BEACHES OF AUSTRALIA TO MAKE THE POINT A COVER PHOTO SHOWS A REAR VIEW OF A NUDE WOMAN STROLLING ALONG A DESOLATE WHITE BEACH A DOG FROLICKING NEARBY THE COVER HAS OUTRAGED SOME READERS WHO THOUGHT IT WAS A SEXIST DEPARTURE FROM THE MAGAZINE'S GLOSSY BUT SEDATE IMAGE I WAS QUITE SHOCKED SAYS GAIL M SANBORN OFFICE ADMINISTRATOR FOR A PHYSICALREHABILITATION CLINIC IN GILFORD NH THE HEADLINE SAYS GREAT BEACHES' BUT ALL I SAW WAS A GREAT REAR END MS SANBORN RIPPED OFF THE COVER BEFORE DISPLAYING THE MAGAZINE AND SAYS SHE WILL GLADLY DISCONTINUE THE SUBSCRIPTION IF TRAVELER USES A RISQUE COVER PHOTO AGAIN IN SEARCY ARK WORLD TRAVEL INC YANKED THE ENTIRE MAGAZINE FROM ITS WAITING ROOM SOMETHING IT HADN'T DONE SINCE A TOURCOMPANY PUBLICATION TOUTED NUDE BEACHES IN JAMAICA WE HAVE A LOT OF FAMILIES THAT COME IN HERE AND WE DON'T WANT MAGAZINES THAT LOOK LIKE PLAYBOY SAYS BEN BERRY THE TRAVEL AGENCY'S PRESIDENT THE PHOTO ITSELF WASN'T PLANNED ASSIGNED TO THE AUSTRALIA STORY SWEDISH PHOTOGRAPHER HAKAN LUDWIGSSON SHOT A SUNRISE AT CABLE BEACH WENT FOR A SWIM AND TOOK A NAP IN HIS JEEP WHEN HE AWOKE HE SAYS HE SAW THE WOMAN'S FAINT NUDE IMAGE IN THE BRIGHT MORNING SUNSHINE JUST WAKING UP AND SEEING THAT IT WAS VERY SENSUAL MR LUDWIGSSON SAYS HE SCURRIED AFTER THE UNIDENTIFIED BRUNETTE WHO OBLIGED HIS REQUEST TO PHOTOGRAPH HER THOMAS J WALLACE TRAVELER'S EDITOR IN CHIEF DISMISSES CRITICISM THAT THE COVER IS SEXIST NOTING THAT MANY OF MAGAZINE'S TOP EDITORS ARE WOMEN AND HALF OF THE PUBLICATION'S READERSHIP IS FEMALE TRAVELER'S CIRCULATION IS ABOUT ONE MILLION WE DON'T SIT AROUND ASKING OURSELVES HOW DO WE APPEAL TO WOMEN AND HOW DO WE APPEAL TO MEN MR WALLACE SAYS THIS JUST STRUCK US AS THE PERFECT WAY TO TELL THE STORY OF THIS BEACH WE ASKED OURSELVES QUESTIONS ABOUT TASTE EXPLOITATION AND SEXISM AND WE DECIDED TO PUBLISH IT THE DECISION APPEARS TO HAVE PAID OFF DESPITE SOME LETTERS OF COMPLAINT APRIL NEWSSTAND SALES HAVE SOARED 37 COMPARED WITH THE YEAREARLIER EDITION WHAT WAS ON LAST APRIL'S COVER A PHOTO OF THE VATICAN 9304200166 930420 POLITICS & POLICY HUD'S CISNEROS HAS BIG PLANS FIERY CHARISMA CLINTON'S EAR AND FEW NEW SOURCES OF FUNDS BY LAURIE MCGINLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE DAY AFTER THE LOS ANGELES RIOTS BEGAN LAST YEAR HENRY CISNEROS WALKED THE STREETS TALKING TO SPANISHSPEAKING LOS ANGELENOS AND BEARING RELUCTANT WITNESS TO WHAT HE CALLS A SMOKY URBAN APOCALYPSE NOW AS PRESIDENT CLINTON'S SECRETARY OF HOUSING AND URBAN DEVELOPMENT HE CALLS THE CONVICTIONS OF TWO LOS ANGELES POLICEMEN IN THE RODNEY KING BEATING AS A REPRIEVE AND AN OPPORTUNITY TO GET ABOUT THE SERIOUS WORK THAT NEEDS TO BE DONE TO REVIVE AMERICA'S TROUBLED CITIES HE SEES INNERCITY AREAS LIKE SOUTH CENTRAL LOS ANGELES NOT AS SYMBOLS OF DECAY BUT FERTILE GROUND FOR DEVELOPING A SHARED VISION OF HOPE HIS VISION IS TO FORGE COMMUNITIES ATTACK HOUSING SEGREGATION AND DEVELOP A NEW ECONOMIC ROLE FOR URBAN CENTERS WHAT ARE HIS CHANCES OF SUCCESS ABOUT 1 IN 4 THE FORMER MAYOR OF SAN ANTONIO SAYS HE'S AN OPTIMIST SAYS ELLIOTT SCLAR PROFESSOR OF URBAN PLANNING AT COLUMBIA UNIVERSITY WHILE THE PRESIDENT SHORTLY WILL ANNOUNCE A PROPOSAL FOR URBAN ENTERPRISE ZONES HIS ADMINISTRATION SEEMS NEITHER WILLING NOR ABLE PARTLY DUE TO BUDGET CONSTRAINTS TO MOUNT A COMPREHENSIVE ASSAULT ON URBAN ILLS ANY TIME SOON UNDER PRESSURE FROM SENATE REPUBLICANS MR CLINTON IS OFFERING TO TRIM HIS STIMULUS PLAN WHICH WOULD PUMP BILLIONS OF DOLLARS INTO THE CITIES IMMEDIATELY INCLUDING 25 BILLION FOR GRANTS TO LOCAL COMMUNITIES SOME CRITICS SAY THAT THE ADMINISTRATION SHOULD HAVE COME UP WITH AN URBAN BLUEPRINT ALREADY FOR THE LOS ANGELES TRIAL THERE WAS A MEDIA PLAN A POLICE PLAN AND ALL KINDS OF OTHER PLANS BUT THERE IS NO URBAN POLICY PLAN COMPLAINS THE REV JESSE JACKSON THE WHITE HOUSE MAKES NO APOLOGIES ABOUT NOT HAVING A GREAT SOCIETY TYPE OF URBAN PLAN WE'RE NOT GOING TO SOLVE THESE PROBLEMS SIMPLY BY SHELLING OUT MORE MONEY SAYS BRUCE REED DEPUTY ASSISTANT TO THE PRESIDENT FOR DOMESTIC POLICY THIS COUNTRY HAS SPENT BILLIONS AND BILLIONS OVER THE LAST 30 YEARS ON URBAN AMERICA WITH RELATIVELY LITTLE IMPACT OUR GOAL IS TO EMPOWER COMMUNITIES TO DEVELOP THEIR OWN RECOVERY PLANS AND BECOME ECONOMICALLY VIABLE TO HELP REACH THAT GOAL THE PRESIDENT IS LOOKING TO HIS HUD SECRETARY THE 45YEAROLD MR CISNEROS ADVERTISES HIMSELF AS A NEW VOICE FOR AMERICA'S CITIES AT A RALLY IN WASHINGTON BEFORE A LOWINCOME HOUSING GROUP MR CISNEROS STAGES AN ELECTRIFYING TRANSFORMATION FROM A TYPICAL WASHINGTON SUIT TO A COMMUNITYORGANIZING RABBLEROUSER FIST RAISED HE STANDS ON THE PODIUM SHOUTING WITH THE CROWD EL PUEBLO UNIDO JAMAS SERA VENCIDO OR THE PEOPLE UNITED WILL NEVER BE DEFEATED I PERSONALLY HAVE NEVER SEEN A PUBLIC OFFICIAL CONNECT SO WELL WITH A LOWINCOME GROUP SAYS JERRY JONES LEGISLATIVE REPRESENTATIVE FOR THE ASSOCIATION OF COMMUNITY ORGANIZATIONS FOR REFORM NOW OR ACORN WHICH SPONSORED THE RALLY IN HIS FIRST MONTHS IN OFFICE MR CISNEROS HAS DEVELOPED PRINCIPLES FOR RETOOLING URBAN PROGRAMS INCLUDING REDUCING THE CONCENTRATION OF THE POOR IN THE INNER CITY USING HOUSING POLICY TO PROVIDE AN ECONOMIC LADDER AND TRYING TO CHANGE SELFDESTRUCTIVE BEHAVIORS ON BOTH SIDES OF THE RACIAL DIVIDE HE HOPES THE GOALS WILL BE EMBRACED BY THE WHITE HOUSE WHICH HE PLANS TO BRIEF THIS WEEK BUT DOESN'T MUCH CARE WHETHER THEY'RE DUBBED URBAN POLICY YOU CAN CALL IT WHATEVER YOU WANT HE SAYS IT'S MORE A COMMUNITY POLICY THE IMPORTANT THING IS TO HELP THE POOR AND I'M CONFIDENT WE WILL LIKE HIS PREDECESSOR AT HUD JACK KEMP MR CISNEROS SEEMS TO HAVE A VISION OF ATTACKING URBAN ILLS BY EMPOWERING THE POOR ONE DIFFERENCE IS THAT MR CISNEROS HAS GOOD ACCESS TO PRESIDENT CLINTON IN STARK CONTRAST TO MR KEMP WHO RARELY GOT PRESIDENT BUSH'S EAR ASKED BY MR CLINTON TO SCRUTINIZE THE GOVERNMENT'S RESPONSE TO HURRICANE ANDREW HE MET WITH DOZENS OF PEOPLE IN SOUTH FLORIDA OVER A FEBRUARY WEEKEND AND PRESENTED HIS PLAN TO THE WHITE HOUSE THAT SUNDAY NIGHT PRESIDENT CLINTON ANNOUNCED IT ALMOST VERBATIM THE FOLLOWING SATURDAY THE HUD SECRETARY AND MR CLINTON HAVE MUCH IN COMMON BOTH ARE LEADINGEDGE BABY BOOMERS OF THE SAME AGE BOTH HAVE IMPRESSIVE ACADEMIC CREDENTIALS BOTH BUILT REPUTATIONS FOR BEING POLITICAL WUNDERKINDS AND POLICY WONKS BOTH MODERATE DEMOCRATS THEY HAVE HAD SOME UNHAPPY EXPERIENCES WITH WASHINGTON PROGRAMS MAKING THEM LEERY OF A HEAVYHANDED APPROACH SAYS JEFF FAUX PRESIDENT OF THE ECONOMIC POLICY INSTITUTE LIKE MR CLINTON MR CISNEROS HAD MARRIAGE TROUBLES THAT SPILLED OVER INTO HIS PUBLIC LIFE HIS POLITICAL CAREER SEEMED ENDED WHEN IN 1988 HE ADMITTED TO AN AFFAIR WITH A MARRIED CAMPAIGN SUPPORTER THE ENSUING POLITICAL FIRESTORM COUPLED WITH THE DELICATE HEALTH OF HIS YOUNG SON JOHN PAUL WHO WAS BORN WITH A SERIOUS HEART DEFECT LED TO HIS WITHDRAWAL FROM PUBLIC OFFICE IT WASN'T LONG HOWEVER BEFORE MR CISNEROS WAS BACK IN THE PUBLIC EYE CAMPAIGNING FOR OTHER CANDIDATES AND DOING RADIO COMMENTARY HIS MARRIAGE PUT BACK TOGETHER HE WORKED HARD TO WOO HISPANIC VOTERS FOR CANDIDATE CLINTON HIS REWARD THE SPOT AT HUD AND A SHOT AT POLITICAL REDEMPTION NOW HE IS ANXIOUS TO CARRY OUT HIS IDEAS TO PROD RECALCITRANT SUBURBS TO ACCOMMODATE PUBLIC AND LOWINCOME HOUSING HE IS CONSIDERING ASKING THE PRESIDENT TO ISSUE AN EXECUTIVE ORDER THAT WOULD WITHHOLD FEDERAL FUNDS FROM JURISDICTIONS THAT ARE IN SUBSTANTIAL VIOLATION OF FAIR HOUSING REGULATIONS OR HE MAY USE A CARROT APPROACH INSTEAD REWARDING GOOD BEHAVIOR WITH ADDITIONAL AID IN A MOVE THAT PROBABLY WOULD DRAW IRE FROM SOME LOWINCOME GROUPS HE'S ALSO CONSIDERING LOOSENING THE INCOMETARGETING REQUIREMENTS FOR GOVERNMENT HOUSING IN SOME AREAS WHERE POVERTY IS FAR ABOVE AVERAGE TO ATTRACT THE SLIGHTLY BETTER OFF WHO PERHAPS COULD PROVIDE BETTER ROLE MODELS AND WOULD INSIST ON SERVICES SUCH AS GROCERS AND DRY CLEANERS HE'S ALSO PLANNING TO PROPOSE CHANGES IN THE AGENCY'S RENTSUBSIDY PROGRAM TO GIVE THE POOR GREATER CHOICE IN WHERE THEY LIVE HE ALSO WANTS TO TACKLE INSURANCE REDLINING AND TO ENCOURAGE WORK AND SAVING THAT EVENTUALLY WOULD LEAD TO HOMEOWNERSHIP ONE POSSIBLE APPROACH EASING A RULE THAT REQUIRES TENANTS IN PUBLIC AND SUBSIDIZED HOUSING TO PAY 30 OF THEIR INCOME AS RENT EVEN AS THEIR INCOME RISES THAT'S A DISINCENTIVE TO WORK HE SAYS ADDING IT WOULD BE BETTER TO REQUIRE THAT ANY INCREASE BE PUT IN ESCROW TOWARD THE PURCHASE OF A HOME ALREADY REPUDIATED BY THE CISNEROS REGIME HOWEVER IS FORMER HUD SECRETARY KEMP'S EMPHASIS ON TENANT OWNERSHIP OF PUBLIC HOUSING UNITS CISNEROS AIDES SAY TENANTS WOULD LACK THE MONEY TO MAINTAIN UNITS ONCE THEY BOUGHT THEM MEANTIME AN URBAN TASK FORCE CONVENED BY THE WHITE HOUSE IS WORKING ON THE ADMINISTRATION'S PROPOSALS FOR ENTERPRISE ZONES WHICH MAY BE ANNOUNCED THIS WEEK AND COMMUNITY DEVELOPMENT BANKS CURRENT PLANS CALL FOR SETTING UP 10 SUPER ZONES THAT WOULD RECEIVE INCREASED FEDERAL AID AND PROVIDE TAX BREAKS SUCH AS WAGE CREDITS FOR BUSINESSES LOCATED THERE ANOTHER 100 AREAS WOULD GET LESSER BENEFITS UNDER THE BANKING PLAN NEW AND EXISTING INSTITUTIONS WOULD LEND MONEY TO CAPITALSTARVED AREAS FOR HOUSING AND COMMERCIAL PROJECTS A TOP PRIORITY FOR COMMUNITY ACTIVISTS THE INSTITUTIONS ARE THE PERFECT MODEL OF HOW COMMUNITIES CAN TAKE CHARGE OF THEIR OWN DESTINY SAYS THE WHITE HOUSE'S MR REED THE ADMINISTRATION AND ITS BACKERS SAY PIECES OF THE URBAN PLAN RANGE FROM HEALTH AND WELFARE REFORM TO JOB TRAINING AND A PROPOSED EXPANSION OF THE EARNED INCOME TAX CREDIT THAT WOULD COST MORE THAN 20 BILLION OVER FOUR YEARS WE'LL ULTIMATELY HAVE SEA CHANGES IN POLICY PREDICTS RONALD MINCY A SENIOR RESEARCH ASSOCIATE FOR THE URBAN INSTITUTE WHO IS PARTICULARLY ENTHUSED ABOUT THE ADMINISTRATION'S YOUTHAPPRENTICESHIP PROPOSALS WHICH HE SAYS WOULD HELP POOR YOUNG PEOPLE NOT BOUND FOR COLLEGE BUT THERE ALSO ARE DOUBTS MR CISNEROS IS A GREAT CHOICE AS SECRETARY BUT I DON'T THINK THEY'LL GIVE HIM ANY MONEY SAYS ANTHONY DOWNS OF THE BROOKINGS INSTITUTION URBAN AFFAIRS WILL HAVE A HIGHER PRIORITY RHETORICALLY BUT FISCALLY I DOUBT IT UNDER PRESSURE TO REDUCE THE DEFICIT PRESIDENT CLINTON HANDED MR CISNEROS A BUDGET THAT IS ESSENTIALLY FLAT AND THE WHITE HOUSE PROPOSES SPENDING ONLY MODEST AMOUNTS ABOUT 5 BILLION OVER FOUR YEARS TO CREATE ENTERPRISE ZONES AND THE COMMUNITY BANKS AS WELL AS ANTICRIME INITIATIVES IT'S ABSOLUTE PEANUTS SAYS RON WALTERS CHAIRMAN OF THE POLITICAL SCIENCE DEPARTMENT AT HOWARD UNIVERSITY ADDING TO DIFFICULTIES IS THAT HUD FOR YEARS HAS BEEN A GARBAGE HEAP FOR POLITICAL INCOMPETENTS SAYS ROGER WILKINS A PROFESSOR OF HISTORY AT GEORGE MASON UNIVERSITY A DEMORALIZED WORK FORCE WHOSE NUMBERS HAVE FALLEN TO 13500 FROM 17000 A DECADE AGO IS STRUGGLING TO KEEP THINGS GOING IN A DEVASTATING PORTRAIT OF THE AGENCY THE CLINTON TRANSITION TEAM ON HUD WARNED THAT A LONGTERM PATTERN OF FUNDAMENTAL SYSTEMATIC MISMANAGEMENT THREATENS THE PROVISION OF VITAL SERVICES TO MILLIONS OF AMERICANS THE HUD TEAM WAS HEADED BY ANDREW CUOMO THE SON OF NEW YORK GOV MARIO CUOMO AND NOW AN ASSISTANT SECRETARYDESIGNATE AT THE DEPARTMENT MR CISNEROS HAS LAUNCHED AN EFFORT TO OVERHAUL THE DEPARTMENT AND HE PLAYS DOWN BUDGET PROBLEMS THERE WILL NEVER BE ENOUGH MONEY HE SAYS BUT UNLESS AMERICA DEALS WITH ITS CITIES HE SAYS ITS CITIES WILL HAVE VENGEANCE 9304200165 930420 DIVIDEND NEWS ADVANTA CORP ADVANTA CORP A HORSHAM PA CONSUMER FINANCE AND CREDIT CARD COMPANY INCREASED THE QUARTERLY DIVIDEND ON ITS CLASS A AND B COMMON SHARES 25 THE CLASS A DIVIDEND RISES TO 625 CENTS A SHARE FROM FIVE CENTS AND THE CLASS B RISES TO 75 CENTS FROM SIX CENTS BOTH ARE PAYABLE JUNE 22 TO SHARES OF RECORD JUNE 4 9304200164 930420 INTERNATIONAL TOYOTA'S JAPAN SALES ROSE DURING MARCH NISSAN REPORTS A DIP SPECIAL TO THE WALL STREET JOURNAL TOKYO DOMESTIC SALES OF VEHICLES BY TOYOTA MOTOR CORP EDGED UP IN MARCH FOR THE FIRST TIME IN HALF A YEAR WHILE THOSE AT NISSAN MOTOR CO CONTINUED TO SLIP BUT TOYOTA AND NISSAN BOTH REPORTED DECLINES IN DOMESTIC SALES FOR THE FISCAL YEAR ENDED MARCH 31 SEPARATELY A TOYOTA OFFICIAL SPEAKING ON CONDITION OF ANONYMITY SAID THE NO 1 JAPANESE AUTO MAER IN MIDMAY WILL BEGIN DISCOUNTING 10 CAR MODELS BY ABOUT 890 PER CAR IN A MOVE TO STIMULATE DOMESTIC SALES TOYOTA SAID ITS IMPROVEMENT IN DOMESTIC SALES IN MARCH LARGELY CAME FROM MEDIUMSIZED AND SMALL VEHICLES IT NOTED PARTICULARLY STRONG DEMAND FOR MARK II CHASER AND CRESTA SEDANS AS WELL AS THE CORSA AND CRESTA COMPACT MODELS BUT TOYOTA SAID ITS MARKET SHARE IN JAPAN SLIPPED 03 PERCENTAGE POINT TO 318 THE DROP IN NISSAN'S SALES IN JAPAN DURING MARCH MARKED ITS NINTH CONSECUTIVE MONTH OF YEARTOYEAR DECLINE DESPITE THE OVERALL RETREAT NISSAN SAID ITS MICRA AND LAUREL MODELS ATTRACTED STRONG BUYING NISSAN JAPAN'S NO 2 AUTO MAKER SAID ITS SHARE OF THE DOMESTIC MARKET WAS DOWN 09 PERCENTAGE POINT TO 234 OVERSEAS PRODUCTION AT TOYOTA WAS UP FOR THE 10TH CONSECUTIVE MONTH WHILE THAT AT NISSAN ROSE FOR A NINTH CONSECUTIVE MONTH BOTH AUTO MAKERS CITED BRISK DEMAND FOR CERTAIN VEHICLES IN THE LOCALES WHERE THEY WERE MANUFACTURED 9304200163 930420 BUSINESS BRIEF LIZ CLAIBORNE PROFIT FOR QUARTER DECLINES GIII'S NET TRIPLES NEW YORK LIZ CLAIBORNE INC REPORTED A 32 DECLINE IN FIRSTQUARTER NET INCOME ON A 46 SALES DROP THE MUCH SMALLER GIII APPAREL GROUP LTD MEANWHILE REPORTED THAT ITS NET INCOME THOUGH STILL MODEST MORE THAN TRIPLED FOR THE QUARTER ENDED JAN 31 THE SECOND QUARTER IN A TWOQUARTER SOCALLED STUB YEAR LIZ CLAIBORNE SAID NET FOR ITS FIRST QUARTER ENDED MARCH 27 WAS 427 MILLION OR 52 CENTS A SHARE DOWN FROM 628 MILLION OR 74 CENTS A SHARE A YEAR EARLIER SALES FELL TO 5313 MILLION FROM 5569 MILLION A YEAR EARLIER THE COMPANY CITED CONSERVATIVE RETAIL BUYING STARTUP SPENDING FOR NEW DIVISIONS AND OTHER FACTORS A COMPANY OFFICIAL SAID THESE WILL CONTINUE TO NEGATIVELY IMPACT EARNINGS THROUGH THE SECOND QUARTER ALTHOUGH TO A LESSER EXTENT SAMUEL M MILLER SENIOR VICE PRESIDENT FOR FINANCE ADDED HOWEVER MORE FAVORABLE BUSINESS TRENDS AND IMPROVING RESULTS IN SEVERAL OF OUR DIVISIONS ARE EXPECTED TO ENABLE US TO RESUME OUR GROWTH DURING THE SECOND HALF OF THE YEAR GIII SAID NET INCOME FOR THE QUARTER ENDED JAN 31 WAS 197000 OR THREE CENTS A SHARE UP FROM 60500 OR ONE CENT A SHARE A YEAR EARLIER GIII SAID SALES ROSE TO 403 MILLION FROM 381 MILLION A YEAR EARLIER FOR THE SOCALLED STUB YEAR ENDED JAN 31 THE COMPANY REPORTED NET OF 35 MILLION OR 53 CENTS A SHARE UP 36 FROM 26 MILLION OR 40 CENTS A SHARE A YEAR AGO SALES ROSE 21 TO 1162 MILLION FROM 96 MILLION A YEAR EARLIER THE YEAR CONSISTED OF ONLY SIX MONTHS BECAUSE GIII CHANGED ITS FISCAL YEAR TO END JAN 31 FROM JULY 31 9304200162 930420 INTERNATIONAL NEWS CORP SEEN LEADING IN AUSTRALIAN EARNINGS SYDNEY AUSTRALIA RUPERT MURDOCH'S MEDIA GROUP NEWS CORP IS SET TO OVERTAKE BROKEN HILL PROPRIETARY CO AS AUSTRALIA'S BIGGEST EARNER IN 1993 A SURVEY OF ANALYSTS' FORECASTS BY BARCLAYS AUSTRALIA INVESTMENT SERVICES LTD FOUND MARTIN ARCHER ASSOCIATE DIRECTOR OF RESEARCH AT BARCLAYS AUSTRALIA SAID IN AN INTERVIEW THAT THE SURVEY OF ABOUT 25 BROKERAGE FIRMS IN AUSTRALIA AND NEW ZEALAND ALSO FOUND THAT ON AVERAGE AUSTRALIAN COMPANY PROFITS ARE EXPECTED TO RISE 165 IN 1993 FROM 1992 AND A FURTHER 22 IN 1994 FROM 1993 BARCLAYS COMPILES THE RESEARCH FOR CLIENTS MONTHLY BUT DOESN'T ISSUE THE REPORT TO THE MEDIA MR ARCHER SAID THE AVERAGE OF ANALYSTS' FORECASTS IS FOR NEWS CORP TO REPORT PROFIT OF 991 MILLION AUSTRALIAN DOLLARS US7101 MILLION FOR THE FISCAL YEAR ENDING JUNE 30 1993 THAT WOULD BE UP 87 FROM LAST YEAR'S PROFIT OF A5305 MILLION THE RESULTS ARE BEFORE SOCALLED ABNORMAL OR UNUSUAL ITEMS IN FEBRUARY NEWS CORP REPORTED THAT PROFIT FOR THE FIRST HALF ENDED DEC 31 BEFORE ABNORMAL ITEMS ROSE 94 TO A4901 MILLION BHP AUSTRALIA'S BIGGEST LISTED COMPANY IN TERMS OF MARKET CAPITALIZATION IS EXPECTED TO SEE A MODERATE PROFIT INCREASE THIS YEAR FORECASTS FOR BHP'S NET INCOME FOR THE YEAR ENDING MAY 31 AVERAGE A984 MILLION UP 19 FROM A827 MILLION IN 1992 9304200161 930420 SMITHKLINE TO PROVIDE ANTIDEPRESSANT DRUG FOR NEEDY PATIENTS PHILADELPHIA SMITHKLINE BEECHAM PLC SAID IT WOULD PROVIDE AS MUCH AS 5 MILLION OF ITS NEW ANTIDEPRESSANT PAXIL TO PATIENTS WHO CAN'T AFFORD TREATMENT THE BRITISHAMERICAN PHARMACEUTICAL COMPANY SAID THE PROGRAM IS DESIGNED TO HELP PATIENTS FOR WHOM THE COST OF A PRESCRIPTION MAY CAUSE HARDSHIP OR RESULT IN THEM NOT FOLLOWING THE RECOMMENDED TREATMENT A SPOKESWOMAN SAID IT WAS THE FIRST AIDTOTHENEEDY PROGRAM BY A DRUG COMPANY INVOLVING AN ANTIDEPRESSANT SEVERAL MAJOR DRUG COMPANIES RECENTLY HAVE SET UP SIMILAR PROGRAMS FOR NEEDY PATIENTS WITH DRUGS FOR OTHER CONDITIONS SMITHKLINE SAID A PATIENT COULD BE ELIGIBLE FOR THE PROGRAM IF HOUSEHOLD INCOME IS LESS THAN 25000 IF THE PATIENT HAS NO MEDICAL INSURANCE AND IS INELIGIBLE FOR GOVERNMENT OR PRIVATE PRESCRIPTIONDRUG PROGRAMS ALSO A PATIENT MAY BE ELIGIBLE IF THE TREATING DOCTOR THINKS THE COST OF THE ANTIDEPRESSANT WOULD CAUSE A SIGNIFICANT HARDSHIP ON THE PATIENT THE SPOKESWOMAN SAID THAT BASED ON PAXIL'S RETAIL PRICE THE PROGRAM COULD OFFER UP TO 80000 PRESCRIPTIONS OF A MONTH'S DURATION ASSUMING A DAILY DOSAGE OF 20 MILLIGRAMS THE MINIMUM EFFECTIVE DOSAGE TO TREAT DEPRESSION SHE SAID THAT NORMALLY AN INITIAL DIAGNOSIS OF DEPRESSION CALLS FOR TREATMENT OF FOUR TO SIX MONTHS UNDER THE PROGRAM SMITHKLINE WILL EVALUATE A PATIENT'S NEEDS AFTER ONE MONTH OF USE OF PAXIL TO DECIDE WHETHER TO PROVIDE ANY MORE OF THE DRUG FREE OF CHARGE THE SPOKESWOMAN SAID 9304200160 930420 INTERNATIONAL PAPER OTHERS RAISE PRICES OF SOME PAPER BY 7 PURCHASE NY SEVERAL NORTH AMERICAN PAPER MAKERS LED BY INTERNATIONAL PAPER CO HAVE NOTIFIED CUSTOMERS OF AN INCREASE OF ABOUT 7 IN THE LIST PRICE OF COATED GROUNDWOOD PAPERS WHILE MARKETS FOR MANY PAPER PRODUCTS REMAIN RELATIVELY WEAK DEMAND FOR COATED GROUNDWOOD PAPERS USED IN MAGAZINES CATALOGS AND INSERTS HAS BEEN STRONG OF LATE ACCORDING TO INDUSTRY OFFICIALS A SPOKESMAN FOR INTERNATIONAL PAPER SAID THE COMPANY EARLY LAST WEEK RAISED LIST PRICES BY 70 A TON FOR LIGHTWEIGHT AND MEDIUMWEIGHT COATEDGROUNDWOOD PAPER AND BY 60 A TON FOR HEAVYWEIGHT PAPER EFFECTIVE MAY 17 OFFICIALS AT CHAMPION INTERNATIONAL CORP BOISE CASCADE CORP AND REPAP ENTERPRISES INC CONFIRMED THEY HAVE FOLLOWED WITH SIMILAR INCREASES EFFECTIVE JUNE 1 CONSOLIDATED PAPERS INC SAID IT RAISED PRICES FOR SPOT ORDERS PLACED AFTER THIS PAST FRIDAY THE MOVES WILL RAISE THE LIST PRICE FOR A BENCHMARK COATEDGROUNDWOOD GRADE TO ABOUT 1030 A TON FROM 960 INDUSTRY SOURCES SAID TRANSACTION PRICES WHICH HAVE BEEN AROUND 750 TO 775 A TON ARE EXPECTED TO RISE BY SIMILAR AMOUNTS WE HAVE NO DOUBT THAT THIS INCREASE WILL STICK SAID A SPOKESMAN FOR REPAP A MONTREAL COMPANY THAT SPECIALIZES IN COATED PAPER 9304200159 930420 UNISYS CORP POSTS QUINTUPLED EARNINGS FOR THE FIRST QUARTER BLUE BELL PA UNISYS CORP'S NET INCOME MORE THAN QUINTUPLED TO 2606 MILLION OR 139 A SHARE IN THE FIRST QUARTER AS THE COMPUTER COMPANY BENEFITED FROM A CHANGE IN ACCOUNTING PRINCIPLES EXCLUDING THE ACCOUNTING CHANGES AND A ONETIME ITEM UNISYS POSTED AN 18 ADVANCE IN OPERATING PROFIT TO 568 MILLION OR 16 CENTS A SHARE FROM 483 MILLION OR 11 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE SAGGED 51 TO 191 BILLION FROM 201 BILLION THE RESULTS WERE ROUGHLY AS EXPECTED BUT DESPITE AN UPBEAT TONE FROM MANAGEMENT WHICH PROCLAIMED ITSELF VERY PLEASED UNISYS SHARES FELL 75 CENTS YESTERDAY TO CLOSE AT 1275 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SECURITIES ANALYSTS SAID INVESTORS APPARENTLY FOCUSED ON THE COMPANY'S SLUGGISH REVENUE TOPLINE GROWTH IS THE KEY TO SUSTAINING THE COMPANY'S TURNAROUND THEY NOTED BUT THERE'S NO SIGN OF A REVENUE RESURGENCE YET UNISYS SAID ITS FIRSTQUARTER REVENUE WAS HURT BY WEAK MARKETS IN EUROPE AND JAPAN AS WELL AS BY CURRENCY TRANSLATIONS BUT IT POINTED TO OVERALL US GROWTH AND CONTINUED DOUBLEDIGIT GROWTH IN DOMESTIC SALES OF ITS BIG MAINFRAME COMPUTERS THAT MAKES THE COMPANY A NOTABLE TRENDBUCKER ESPECIALLY WHEN COMPARED TO INTERNATIONAL BUSINESS MACHINES CORP WHICH IS EXPECTED TO REPORT THIS MORNING THAT ITS MAINFRAME SALES PLUNGED IN THE FIRST QUARTER UNISYS ALSO REPORTED FURTHER PROGRESS REDUCING ITS DEBT WHICH DECLINED BY 232 MILLION IN THE PERIOD TO 15 BILLION NET OF CASH ON HAND THE COMPANY'S NET DEBTTOCAPITAL RATIO REACHED 38 WHICH THE COMPANY SAID WAS A SUBSTANTIAL IMPROVEMENT FROM A YEAR EARLIER UNISYS'S LONGERTERM TARGET IS A 25 DEBTTOCAPITAL RATIO THIS WAS REALLY A VERY SOLID QUARTER SAID CURT ROHRMAN OF FIRST BOSTON CORP 9304200158 930420 FINANCING BUSINESS BOOMTOWN INC BOOMTOWN INC RENO NEV SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION COVERING THE PROPOSED PUBLIC OFFERING OF 34 MILLION COMMON SHARES TWO MILLION OF THE SHARES WILL BE SOLD BY THE COMPANY AND 14 MILLION WILL BE OFFERED BY A SELLING SHAREHOLDER PROCEEDS WILL BE USED FOR EXPANSION PROJECTS GENERAL CORPORATE PURPOSES AND WORKING CAPITAL THE CASINO OPERATOR WHICH CURRENTLY OWNS AND OPERATES ONE CASINO SAID IT PLANS TO EXPAND ITS OPERATIONS TO BILOXI MISS NEW ORLEANS AND LAS VEGAS THE OFFERING WILL BE MANAGED BY OPPENHEIMER & CO AND SUTRO & CO BOOMTOWN SAID CURRENTLY BOOMTOWN HAS 63 MILLION COMMON SHARES OUTSTANDING 9304200157 930420 MAJOR US AIRLINES MATCH NORTHWEST'S 35 FARE CUT ALL MAJOR AIRLINES MATCHED THE FARE CUT OF UP TO 35 ANNOUNCED BY NORTHWEST AIRLINES OVER THE WEEKEND THE SALE DESIGNED TO BOOST LEISURE TRAVEL APPLIES TO TICKETS PURCHASED BY FRIDAY APRIL 23 AND ARE GOOD FOR TRAVEL THROUGH JUNE 30 OTHER RESTRICTIONS APPLY INCLUDING A 14DAY ADVANCE PURCHASE AND A SATURDAY NIGHT STAY NORTHWEST A UNIT OF WINGS HOLDINGS INC CUT PRICES ON MOST OF ITS DOMESTIC DESTINATIONS PLUS CANADA MEXICO AND THE CARIBBEAN RIVAL CARRIERS INCLUDING AMR CORP'S AMERICAN AIRLINES DELTA AIR LINES AND UAL CORP'S UNITED AIRLINES MATCHED THE FARE CUT IN MARKETS WHERE THEY COMPETE WITH NORTHWEST EVEN THOUGH THE SALE IS LIMITED AND DOESN'T NECESSARILY SIGNAL ANOTHER SUMMER OF CATASTROPHIC FARE WARS AIRLINE STOCKS WERE DOWN SHARPLY YESTERDAY ANALYSTS SAY THE SALE GAVE INVESTORS AN EASY EXCUSE TO TAKE PROFITS IN AN INDUSTRY GROUP THAT'S BEEN VERY STRONG IN RECENT WEEKS 9304200156 930420 INTERNATIONAL CHIEF EXECUTIVE OF FIAT MAY MEET MILAN INVESTIGATORS MILAN FIAT SPA'S CHIEF EXECUTIVE CESARE ROMITI MAY MEET THIS WEEK WITH MILAN MAGISTRATES INVESTIGATING ITALY'S SNOWBALLING CORRUPTION SCANDALS THE TURINBASED AUTOMOBILE GIANT CONFIRMED YESTERDAY MR ROMITI WHO ISN'T UNDER INVESTIGATION IN THE SCANDAL SAID HE IS WILLING TO BE INTERVIEWED BY PROSECUTORS TO DISCUSS FIAT'S ROLE IN ALLEGED KICKBACKS FOR GOVERNMENT CONTRACTS THAT HAVE RESULTED IN ARREST WARRANTS FOR SEVEN SENIOR FIAT EXECUTIVES THE MOVE FOLLOWS A STATEMENT BY FIAT CHAIRMAN GIANNI AGNELLI THAT THE AUTO COMPANY WAS INVOLVED IN THE BRIBERY SYSTEM WHICH WAS PERVASIVE IN ITALY DURING THE PAST 15 YEARS SOME INCORRECT EPISODES INVOLVING THE POLITICAL SYSTEM HAVE BEEN IDENTIFIED AT FIAT MR AGNELLI TOLD A GROUP OF INDUSTRIALISTS OVER THE WEEKEND HOPEFULLY THE INVESTIGATION WILL CLARIFY THE REAL SIGNIFICANCE OF THE EPISODES CONCERNING US AND OTHER COMPANIES DISTINGUISHING THOSE WHO WERE SERIOUS INDUSTRIALISTS FROM THOSE WHO INSTEAD BUILT THEIR FORTUNES ALMOST EXCLUSIVELY ON THE SYSTEM OF COLLUSION WITH POLITICAL POWER FIAT LAWYERS MET WITH INVESTIGATING MAGISTRATES TO DISCUSS CONTINUING INVESTIGATIONS OF THE COMPANY AND THE FATE OF FOUR SENIOR MANAGERS WHO ARE WANTED BY MAGISTRATES BUT HAVEN'T RETURNED TO ITALY FROM ABROAD MR AGNELLI'S COMMENTS AND MR ROMITI'S AVAILABILITY TO MAGISTRATES REPRESENT A SHIFT IN STRATEGY BY THE AUTO COMPANY WHICH HAD BEEN HOSTILE TO JUDGES' INVESTIGATIONS OVER THE PAST SEVERAL MONTHS MAGISTRATES HAVE SAID FIAT USED FOREIGN SUBSIDIARIES TO PAY ILLEGAL FUNDS TO ITALIAN POLITICAL PARTIES THROUGH SWISS BANK ACCOUNTS IN RETURN FOR CONTRACTS THE SCANDAL HAS DECIMATED THE COMPANY'S EXECUTIVE LEVEL FIAT'S CHIEF FINANCIAL OFFICER PAOLO MATTIOLI IS UNDER HOUSE ARREST AND AN ARREST WARRANT HAS BEEN ISSUED FOR GIORGIO GARUZZO THE CHIEF OPERATING OFFICER WHO IS STILL ABROAD OTHER EXECUTIVES ABROAD AND WANTED BY MAGISTRATES INCLUDE PAOLO TORRICELLI CHIEF EXECUTIVE OF FIAT AVIO THE COMPANY'S AUTO TURBINE UNIT MAURO BERTINI MANAGING DIRECTOR OF FIAT AVIO AND MASSIMO AIMETTI FINANCIAL DIRECTOR OF IVECO THE COMPANY'S COMMERCIAL VEHICLES SUBSIDIARY 9304200155 930420 INTERNATIONAL MALAYSIAN BANK ISSUES STATEMENT ON EXCHANGE LOSS BY STEPHEN DUTHIE STAFF REPORTER OF THE WALL STREET JOURNAL KUALA LUMPUR MALAYSIA THE GOVERNOR OF MALAYSIA'S CENTRAL BANK ISSUED AN EXPLANATION OF THE BANK'S HEAVY FOREIGNEXCHANGE LOSSES IN 1992 IN AN EFFORT TO REBUT GROWING CRITICISM ACCORDING TO SOME NEWS REPORTS THE CENTRAL BANK KNOWN AS BANK NEGARA WILL HAVE TO TAKE A 4 BILLION CHARGE AGAINST CONTINGENCY FUNDS ARISING FROM A LOSS IN ITS FOREIGNEXCHANGE HOLDINGS BANK NEGARA HASN'T DISCLOSED THE SIZE OF ITS LOSS WHICH WAS REPORTED ON APRIL 2 BY SEVERAL FOREIGN NEWSPAPERS AND NEWS AGENCIES BASED ON ANSWERS TO QUERIES PUT TO THE CENTRAL BANK PRIVATE ECONOMISTS AND MONEY MARKET ANALYSTS HAD EXPECTED THE CENTRAL BANK AN AGGRESSIVE FOREIGNEXCHANGE TRADER TO REPORT A CHARGE OF SEVERAL BILLION MALAYSIAN DOLLARS IN ITS RESERVES THAT WAS INEVITABLE THEY SAID IN LIGHT OF THE ENORMOUS PRESSURE ON THE INFLATIONFIGHTING INSTITUTION TO MOP UP EXCESS LIQUIDITY FROM THE BOOMING ECONOMY AND THE HEAVY INFLOW OF FOREIGN FUNDS BUT FEW ECONOMISTS AND ANALYSTS EXPECTED THE CHARGE TO BE AS HIGH AS THE REPORTED M10 BILLION US387 BILLION IN HIS STATEMENT THE BANK GOVERNOR TAN SRI JAFFAR HUSSEIN INDICATED HE WAS UNABLE TO DISCLOSE DETAILS OF THE LOSS BECAUSE FUTURE EFFECTIVENESS OF THE BANK IN RESERVES MANAGEMENT DEPENDS ON NOT LETTING THE MARKET KNOW WHAT WE HAVE DONE OR WHAT OUR COMMITMENTS ARE ECONOMISTS AND ANALYSTS HAVE SAID THAT FOR THE CENTRAL BANK TO RECORD SUCH A HUGE FOREIGNEXCHANGE LOSS IT PROBABLY HELD MUCH OF ITS RESERVES IN BRITISH POUNDS AND OTHER CURRENCIES THAT FLUCTUATED WILDLY DURING LAST YEAR'S CRISIS IN THE EUROPEAN EXCHANGE RATE MECHANISM TAN SRI JAFFAR INDICATED THAT IS EXACTLY WHAT HAPPENED WHEN HUGE AMOUNTS OF FOREIGN CURRENCY MOSTLY DENOMINATED IN US DOLLARS FLOWED INTO MALAYSIA LAST YEAR BANK NEGARA COULD EITHER DEPOSIT THOSE FUNDS IN US ACCOUNTS WHICH YIELDED ABOUT A 25 RETURN OR CONVERT THEM INTO HIGHYIELDING CURRENCIES TO COVER ITS POTENTIAL LOSSES MONEY MARKET ANALYSTS RECKONED THAT THE CENTRAL BANK OPTED FOR THE BRITISH POUND ONE OF THE HIGHEST INTERESTBEARING CURRENCIES IN 1992 AND LOST NO DOUBT THE MANAGEMENT OF THE SUCCESS HAS TAKEN ITS TOLL ON THE BANK TAN SRI JAFFAR SAID BUT WHERE THE BANK HAS LOST THE GOVERNMENT AND THE PRIVATE SECTOR GAINED CERTAINLY IN TERMS OF A SMALLER EXTERNAL DEBT BURDEN AND HIGHER PURCHASING POWER OVERSEAS OF THE MALAYSIAN DOLLAR AND WEALTH IN THE HANDS OF ALL MALAYSIANS 9304200154 930420 LAW BOESKY IN DIVORCE CLAIMS HE DESERVES PROFITS FROM CRIMES EXWIFE WITH 100 MILLION SAYS HE LOST MORE IN FINES THAN HE BROUGHT IN FINALLY BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IVAN BOESKY'S LAWYER CLAIMS THAT THE FORMER ARBITRAGER'S CRIMES BENEFITED HIS MARRIAGE AND SHOULD WORK TO HIS ADVANTAGE IN HIS DIVORCE THIS UNUSUAL LEGAL ARGUMENT CAME IN OPENING STATEMENTS IN A MANHATTAN DIVORCE COURT RIGHT NEXT DOOR TO THE ONE WHERE WOODY ALLEN AND MIA FARROW ARE ALSO CURRENTLY AT WAR AT ISSUE IN THE BOESKY CASE IN WHICH THE DIVORCE ITSELF HAS ALREADY BEEN COMPLETED IS THE DIVISION OF MARITAL PROPERTY ATTORNEY RENEE SCHWARTZ SAID THAT MR BOESKY WHO CLAIMS HE'S BROKE IS SEEKING ABOUT HALF OF THE MORE THAN 100 MILLION THAT SEEMA BOESKY HOLDS HE DESERVES THIS EQUITABLE DISTRIBUTION THE LAWYER SAID BECAUSE HE MADE HIS WIFE RICH BEYOND HER IMAGINATION BOTH THROUGH HIS LEGAL AND ILLEGAL BUSINESS ACTIVITIES MRS BOESKY'S LAWYER EDWARD BRODSKY COUNTERED THAT MR BOESKY WOULD NEVER HAVE AMOUNTED TO ANYTHING WITHOUT THE HELP OF HIS WIFE'S WEALTHY REALESTATE FAMILY AND HE SAID THAT MR BOESKY COST THE MARITAL ESTATE MUCH MORE THAN HE ADDED TO IT CONSIDERING THE 100 MILLION HE ENDED UP PAYING IN FINES AS A RESULT OF HIS INSIDER TRADING AND THE DAMAGE HE DID TO THE FAMILY'S GOOD NAME MRS BOESKY AND THE COUPLE'S FOUR CHILDREN HAVE TO BEAR THE NAME BOESKY THAT IS NOW SYNONYMOUS WITH CORRUPTION MR BRODSKY SAID POINTING OUT THAT MRS BOESKY WAS TURNED DOWN FOR MEMBERSHIP IN A MANHATTAN COOPERATIVE APARTMENT FOR THIS REASON RAOUL FELDER A NEW YORK DIVORCE LAWYER NOT INVOLVED IN THE CASE SAID HE KNOWS OF NO OTHER CASE WHERE THE QUESTION OF WHETHER CRIME HELPS OR HURTS A MARRIAGE HAS BEEN RESOLVED BUT MR FELDER PREDICTED THAT THE CRIMES MR BOESKY COMMITTED AND THE FINES HE PAID WOULD WORK AGAINST HIM IT WOULD BE THE SAME THING IF HE HAD GONE TO LAS VEGAS AND LOST THE MONEY OR SPENT IT ON A GIRLFRIEND IT'S COUNTED AGAINST HIS SHARE OF THE ASSETS MR FELDER SAID ALTHOUGH THE BOESKY CASE HASN'T ATTRACTED THE MEDIA ATTENTION SURROUNDING THE ALLENFARROW DISPUTE IT COULD PROVE SIGNIFICANT IN ITS OWN WAY IN ADDITION TO TESTING MS SCHWARTZ'S LEGAL THEORY REGARDING THE PROFITS OF CRIME IT COULD HELP ANSWER THE LINGERING QUESTION OF WHETHER MR BOESKY REALLY PAID EVERYTHING THAT HE HAD TO THE GOVERNMENT IN HIS 1986 SETTLEMENT AS HE CLAIMED AT THE TIME MR BRODSKY THE ATTORNEY FOR MRS BOESKY SAID HE WILL SHOW THAT THE FORMER ARBITRAGE KING CONTINUES TO LIVE A REGAL LIFESTYLE SUGGESTING THAT HE HAS MONEY HIDDEN AWAY BUT MR BOESKY'S LAWYER MS SCHWARTZ SAID THIS SIMPLY ISN'T SO OF COURSE IF MR BOESKY DOES MANAGE TO GET MONEY FROM THE DIVORCE PROCEEDING HE WILL HEIGHTEN SUSPICIONS EXPRESSED IN 1986 THAT THE GOVERNMENT'S FINE WASN'T SUFFICIENT AS IT LEFT HIS WIFE WITH ILLGOTTEN MONEY THAT HE COULD GET WHEN HE RETURNED FROM HIS TWO YEARS IN JAIL THE OUTCOME IS ALSO IMPORTANT TO MAXUS CORP UNDER A SETTLEMENT WITH MR BOESKY FOR HIS ALLEGED INSIDERTRADING ACTIVITIES THE DALLASBASED CONCERN GETS 35 OF WHATEVER HE GETS FROM HIS WIFE MRS BOESKY RARELY LOOKED AT HER FORMER HUSBAND THROUGHOUT THE FIRST DAY OF PROCEEDINGS MR BOESKY SHOWED NO EMOTION AS VARIOUS LAWYERS DETAILED HIS CRIMES THE TWO SAT ON OPPOSITE SIDES OF A COURT BENCH SEPARATED BY STACKS OF BOXES CONTAINING LEGAL FILES MRS BOESKY TOOK THE WITNESS STAND BRIEFLY AT THE END OF THE FIRST DAY OF THE TRIAL WHICH IS EXPECTED TO LAST SEVERAL WEEKS 9304200153 930420 PEPPERAND SALT OF A FAUX PAS THAN A BLOOPER TO BE RECLINED 9304200152 930420 INTEGRATED WASTE SERVICES BUFFALO NY INTEGRATED WASTE SERVICES INC SAID THE NEW YORK STATE DEPARTMENT OF ENVIRONMENTAL CONSERVATION FOUND THAT THE COMPANY'S PROPOSED FARMERSVILLE LANDFILL ISN'T OVER A PRINCIPAL AQUIFER THE FINDING MOVES THE COMPANY A STEP CLOSER TO GAINING A PERMIT TO CONSTRUCT AND OPERATE THE LANDFILL THE WASTE MANAGEMENT COMPANY SAID THE LANDFILL COULD CONTRIBUTE SIGNIFICANTLY TO REVENUE IN 1992 INTEGRATED HAD 382 MILLION IN REVENUE 9304200151 930420 DUQUESNE LIGHT CO BONDS PITTSBURGH DUQUESNE LIGHT CO A UNIT OF DQE SAID IT WILL REDEEM 98 MILLION OUTSTANDING OF ITS 95 SERIES OF FIRST MORTGAGE BONDS DUE DEC 1 2016 ON MAY 21 THE ELECTRIC COMPANY WILL REDEEM THE BONDS AT 10665 OF THE PRINCIPAL AMOUNT 9304200150 930420 ENTERPRISE FINANCING SMALL BUSINESS NEW ISSUES OF COMPUTERRELATED FIRMS KEEP BOOMING BY UDAYAN GUPTA STAFF REPORTER OF THE WALL STREET JOURNAL SIXTYEIGHT OFFERINGS LAST YEAR RAISED A RECORD 41 BILLION REPORTS VENTURE FINANCE A NEW YORK NEWSLETTER THAT TRACKS CAPITAL FOR GROWTH COMPANIES IN THIS YEAR'S FIRST QUARTER 22 COMPANIES WENT PUBLIC VENTURE FINANCE ADDS AS MANY OF THE COMPANIES WERE SMALL THE TOTAL AMOUNT RAISED WAS A RELATIVELY MODEST 668 MILLION HOWEVER THE NEWSLETTER NOTES IF THE SCRAMBLE TO SNAP UP THE SHARES OF SUCH NEW ISSUES AS THOSE OF 3DO CORP SAN MATEO CALIF IS ANY INDICATION PROSPECTS FOR COMING MONTHS ARE STRONG THE OFFERING BY THE MULTIMEDIASYSTEM CONCERN IS OVERSUBSCRIBED SEVERAL TIMES OVER BANKERS SAY OTHER COMPUTER TECHNOLOGY CONCERNS PLANNING TO GO PUBLIC SOON INCLUDE OPTI INC A SANTA CLARA CALIF MAKER OF CHIP SETS FOR PERSONAL COMPUTERS ABSOLUTE ENTERTAINMENT INC A DEVELOPER AND PUBLISHER OF ENTERTAINMENT SOFTWARE FOR NINTENDO AND SEGA GENESIS AND DATAWARE TECHNOLOGIES A CAMBRIDGE MASS PUBLISHER OF COMPACT DISKS CONTAINING COMPUTERIZED INFORMATION THE AFTERMARKET PERFORMANCE OF THE NEW COMPUTER ISSUES HAS BEEN EXTRAORDINARY SAYS RICHARD SHAFFER EDITOR OF VENTURE FINANCE A BUYER WHO ACQUIRED EVERY NEW ISSUE AT THE OFFERING PRICE IN 1992 WOULD SHOW A 46 GAIN ON HIS INVESTMENT AT THE END OF THE YEAR HE ADDS INVESTMENT BANK ROBERTSON & STEPHENS SAN FRANCISCO SAYS THAT FIVE OF THE EIGHT COMPANIES THAT IT PLANS TO TAKE PUBLIC IN THE COMING WEEKS ARE IN COMPUTERRELATED BUSINESSES VENTURE CAPITALISTS RUSH IN WHERE MONEY MANAGERS FEAR TO TREAD WHEN MANY PORTFOLIO MANAGERS THINK OF THE HEALTHCARE INDUSTRY NOWADAYS THEY WORRY ABOUT PROSPECTIVE CHANGES IN FEDERAL HEALTHCARE POLICY AND PROBLEMS AT HIGHPROFILE COMPANIES SUCH AS SYNERGEN INC AND AMGEN INC BUT NUMEROUS VENTURECAPITAL COMPANIES REMAIN BULLISH ON THE FIELD FRAZIER & CO SEATTLE SAYS IT HAS CLOSED ON THE INITIAL 25 MILLION OF A 50 MILLION FUND FOR INVESTING IN HEALTHCARE BUSINESSES ABINGWORTH MANAGEMENT LTD LONDON HAS RAISED 40 MILLION TO INVEST MOSTLY IN US EARLYSTAGE HEALTHCARE COMPANIES ESPECIALLY IN BIOTECHNOLOGY TROUVER CAPITAL PARTNERS PRINCETON NJ PLANS TO RAISE 50 MILLION TO INVEST IN COMPANIES THAT PROMOTE COST CONTAINMENT IN HEALTH CARE SANDERLING VENTURES MENLO PARK CALIF IS PLANNING A UNIQUE 30 MILLION FUND FOR HEALTHCARE BUSINESSES IT PLANS TO DONATE ITS MANAGEMENT FEES TO ENVIRONMENTAL PROJECTS NEW YORK'S WELSH CARSON ANDERSON & STOWE WHICH SPECIALIZES IN INVESTMENTS IN HEALTHCARE AND INFORMATIONSERVICES BUSINESSES EXPECTS IN MAY TO COMPLETE THE FINANCING OF A 600 MILLION FUND THAT WILL BE USED TO ACQUIRE AND CONSOLIDATE HEALTHCARE COMPANIES MANY VENTURE CAPITALISTS BELIEVE THE INDUSTRY IS AT THE BOTTOM OF THE INVESTMENT CYCLE AND STOCKS ARE PRICED CHEAPLY ALAN FRAZIER A MANAGING PARTNER OF THE SEATTLE FUND SEES BIG PAYOFFS AS TODAY'S RESEARCH TURNS OUT TOMORROW'S PRODUCTS STRATEGIC ALLIANCES IN BIOTECHNOLOGY HIT A RECORD IN 1992 SUCH AGREEMENTS TO SHARE TECHNOLOGY OR RESOURCES ROSE TO 217 LAST YEAR FROM 168 IN 1991 REPORTS IN VIVO A NORWALK CONN NEWSLETTER THAT COVERS BUSINESS AND MEDICINE THE PACTS OFTEN HELP SMALL COMPANIES ACHIEVE GOALS THAT WOULD OTHERWISE REQUIRE CAPITAL INVESTMENTS MUCH OF THE INCREASED ACTIVITY INVOLVED ACCORDS BETWEEN SMALL COMPANIES SAYS ROGER LONGMAN COEDITOR OF IN VIVO BUT THE MAIN ACTION INVOLVED COLLABORATION BETWEEN SMALL BIOTECHNOLOGY COMPANIES AND PHARMACEUTICAL GIANTS HUNGRY FOR THEIR TECHNOLOGICAL INPUT BAYER AG'S MILES INC AND LITTLE VIAGENE INC FOR EXAMPLE LAUNCHED A GENETHERAPY PROJECT THAT IS EXPECTED TO PRODUCE 9 MILLION FOR VIAGENE AND THE JAPANESE SUBSIDIARY OF SCHERINGPLOUGH CORP PLANS TO DEVELOP AND COMMERCIALIZE SCICLONE PHARMACEUTICALS INC'S DRUG FOR CHRONIC HEPATITIS B SCHERINGPLOUGH DECIDED TO LICENSE SCICLONE'S DRUG TO ENSURE CONTINUED CONTROL OF THE JAPANESE MARKET SAYS THOMAS MOORE CHIEF EXECUTIVE OFFICER OF SCICLONE THE BIG DRUG MAKER'S EXISTING DRUG FOR HEPATITIS B IS ALREADY A BEST SELLER IN JAPAN BUT SCICLONE HOPES ITS FORMULATION WILL GIVE IT AN EVEN BIGGER PIECE OF THE 2 BILLION MARKET IT'S THE SMALL COMPANIES THAT HAVE THE TECHNOLOGIES THAT BIG COMPANIES NEED SAYS VENTURE CAPITALIST ROBERT PINKAS OF BRANTLEY VENTURE PARTNERS CLEVELAND JAPANESE COMPANIES INVEST SELECTIVELY IN SMALL HIGHTECH US COMPANIES THE AVALANCHE OF MEGADEALS MAY HAVE STOPPED BUT JAPANESE COMPANIES ARE STILL PURSUING THEIR QUEST FOR INNOVATIVE US TECHNOLOGY SAYS DAN SCHWARTZ MANAGING DIRECTOR OF ULMER BROTHERS INC A NEW YORK INVESTMENT BANK THAT TRACKS USJAPANESE CROSSBORDER TRANSACTIONS OF THE 22 DEALS REPORTED IN 1992 DOWN SHARPLY FROM THE YEAR BEFORE MOST WERE FOCUSED ON MINIATURIZATION LITHOGRAPHY AND SYSTEMS AND APPLICATION SOFTWARE MR SCHWARTZ SAYS IN NOVEMBER MATSUSHITA ELECTRIC INDUSTRIAL CO ANNOUNCED A 41 MILLION INVESTMENT IN GENERAL MAGIC CORP A CUPERTINO CALIF STARTUP THAT IS DEVELOPING A MULTIMEDIANETWORK OPERATING SYSTEM MATSUSHITA JOINS PREVIOUS INVESTORS SONY CORP AND MOTOROLA INC LAST SEPTEMBER JAFCO INVESTED 2 MILLION IN SLATE CORP A SCOTTSDALE ARIZ DEVELOPER OF SOFTWARE FOR PENBASED COMPUTERS AND INNOTECH CORP INVESTED AN ESTIMATED 12 MILLION IN WIND RIVER SYSTEMS INC AN ALAMEDA CALIF COMPANY THAT MAKES SOFTWARE FOR EMBEDDED COMPUTER APPLICATIONS SUCH AS TRANSPORTATION CONTROL JAPANESE COMPANIES ALSO ARE ADDING TO PREVIOUS INVESTMENTS AIWA CO A UNIT OF SONY CORP INCREASED ITS STAKE IN CORE INTERNATIONAL A BOCA RATON FLA DISKDRIVE MANUFACTURER WITH A 5 MILLION INVESTMENT AND MITSUBISHI KASEI CORP FINANCED AN ACQUISITION BY VERBATIM CORP WHICH IT PURCHASED FROM EASTMAN KODAK CO IN 1990 JAPANESE INTEREST IN US TECHNOLOGY REMAINS STRONG SAYS MR SCHWARTZ BUT HAVING DISCOVERED HOW DIFFICULT IT IS TO MANAGE A BIG ACQUISITION AND MAKE IT GROW JAPANESE COMPANIES WILL PROBABLY FOCUS ON A FEW MAIN TECHNOLOGIES THAT HAVE DIRECT NEARTERM IMPLICATIONS FOR THEM MANY BELIEVE SAYS MR SCHWARTZ THERE JUST ISN'T GOING TO BE ANY ACROSSTHEBOARD INHALING OF US TECHNOLOGY 9304200149 930420 BANC ONE EXPANDS FURTHER IN MIDWEST BY PURCHASING NEBRASKA'S NO 2 BANK BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL BANC ONE CORP CONTINUING TO BOLSTER ITS PRESENCE IN THE MIDWEST AGREED TO ACQUIRE THE NO 2 BANK IN NEBRASKA FIRSTIER FINANCIAL INC IN A STOCK SWAP WITH AN INDICATED VALUE OF 674 MILLION THE MOVE BANC ONE'S FIRST INTO NEBRASKA IS PART OF A STRATEGY TO EXPAND IN THE WEST JUST SHY OF CALIFORNIA CHALLENGING REGIONAL GIANTS SUCH AS NORWEST CORP AND FIRST BANK SYSTEM INC ON THEIR OWN TURF ANALYSTS SAID FIRSTIER COMMON STOCK SURGED 20 TO CLOSE AT 5450 UP 9 IN OVERTHECOUNTER TRADING BANC ONE COMMON WAS DOWN 1375 YESTERDAY TO CLOSE AT 58125 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING BANC ONE CHAIRMAN AND CHIEF EXECUTIVE OFFICER JOHN B MCCOY CITING HIS BANK'S RECENT MOVES INTO COLORADO AND ARIZONA SAID THE NEBRASKA ACQUISITION GIVES US A PRESENCE IN ANOTHER STATE THAT FITS IN WITH OUR MIDWESTERN AND SOUTHWESTERN PROFILE HE ADDED THAT THE TRANSACTION WILL NOT DILUTE THE VALUE OF BANC ONE STOCK BANC ONE WHICH IS BASED IN COLUMBUS OHIO HAS 70 BILLION OF ASSETS IN NEBRASKA OMAHABASED FIRSTIER WITH 3 BILLION IN ASSETS IS A CLOSE SECOND TO THE STATE'S BIGGEST BANK OMAHABASED FIRST NATIONAL OF NEBRASKA INC THE THIRDLARGEST BANK IN NEBRASKA IS A UNIT OF MINNEAPOLISBASED NORWEST BROWN BROTHERS HARRIMAN & CO ANALYST NANCY A BUSH NOTING THAT BANC ONE AND NORWEST WILL BE COMPETING IN NEBRASKA COLORADO AND ARIZONA SAID NORWEST AND BANC ONE ARE KNOCKING ON THE SAME DOORS THERE'S MORE THAN A LITTLE GAME OF CHESS BEING PLAYED HERE UNDER THE AGREEMENT ONE SHARE OF BANC ONE COMMON WILL BE EXCHANGED FOR EACH SHARE OF FIRSTIER BASED ON YESTERDAY'S CLOSING PRICE OF 58125 A SHARE THE TRANSACTION WOULD BE VALUED AT 674 MILLION ONE OF FIRSTIER'S LARGEST OWNERS IS OMAHA FINANCIER WARREN BUFFETT'S BERKSHIRE HATHAWAY INC WHICH CONTROLS 566 OF COMMON STOCK MS BUSH THE ANALYST SAID THAT THE AGREEMENT CALLS FOR BANC ONE TO PAY 26 TIMES FIRSTIER'S BOOK VALUE HOWEVER SHE DESCRIBED FIRSTIER AS INCREDIBLY CLEAN WITH A 159 RETURN ON ASSETS LOANLOSS RESERVES THAT ARE 29 OF TOTAL LOANS AND RELATIVELY FEW NONPERFORMING ASSETS WHICH ARE 13 OF ALL LOANS THAT'S 223 COVERAGE OF NONPERFORMERS AND 100 COVERAGE OF NONPERFORMING ASSETS IS CONSIDERED GOOD MS BUSH SAID THIS LOOKS ROCK SOLID MR MCCOY WHO DESCRIBED FIRSTIER AS THE SORT OF RETAIL MIDDLEMARKET BANK BANC ONE HAS TENDED TO ACQUIRE SAID DAVID A RISMILLER FIRSTIER CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILL CONTINUE RUNNING THE BANK IT MAKES SENSE FOR US TO BE ADJACENT TO COLORADO WE'D LIKE TO BE IN MISSOURI AT SOME POINT MR MCCOY SAID REFERRING TO NEBRASKA'S NEIGHBOR TO THE SOUTHEAST 9304200148 930420 FORD RAISES MINIVAN PRICE 11 DETROIT FORD MOTOR CO'S LINCOLNMERCURY DIVISION SAID IT RAISED THE BASE PRICE OF ITS MERCURY VILLAGER GS BY 13 OR 225 BECAUSE OF ONGOING COST INCREASES THE NEW BASE PRICE FOR THE GS MINIVAN IS 17015 THE BASE PRICE OF THE VILLAGER LS REMAINS UNCHANGED AT 22090 9304200147 930420 AUSTRALIAN AUTO REGISTRATIONS SYDNEY AUSTRALIA AUSTRALIAN NEW MOTOR VEHICLE REGISTRATIONS TOTALED 49981 IN MARCH UP 25 FROM 40123 IN FEBRUARY BUT DOWN 05 FROM 50240 IN MARCH 1992 ACCORDING TO CONSULTING FIRM PAXUS CORP THE DATA AREN'T SEASONALLY ADJUSTED THE OFFICIAL SEASONALLY ADJUSTED MARCH FIGURES ON MOTOR VEHICLE REGISTRATIONS ARE SCHEDULED TO BE ANNOUNCED FRIDAY BY THE BUREAU OF STATISTICS 9304200146 930420 AUSTRALIAN TOURISM GAINS CANBERRA AUSTRALIA THE NUMBER OF TOURISTS VISITING AUSTRALIA ROSE 77 TO A SEASONALLY ADJUSTED 238600 IN JANUARY FROM 221500 IN DECEMBER AND ROSE 20 FROM 199300 A YEAR EARLIER THE BUREAU OF STATISTICS SAID THE BUREAU ADDED THAT THE TREND ESTIMATE FOR ARRIVALS IS CONTINUING TO SHOW STEADY GROWTH JAPAN ACCOUNTED FOR 26 OF TOTAL TOURIST ARRIVALS IN JANUARY NEW ZEALAND THE UK AND THE US ALSO WERE KEY SOURCES 9304200145 930420 INTERNATIONAL AMOCO TO SPEND 15 BILLION ON SITE IN SOUTH CHINA SEA BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL AMOCO CORP SAID IT WILL SPEND 15 BILLION TO DEVELOP A LARGE OIL FIELD IN THE SOUTH CHINA SEA THE BIGGEST DISCOVERY TO DATE IN AN AREA THAT HAS PROVED DISAPPOINTING THE LIUHUA PROJECT MARKS ONE OF THE LARGEST INTERNATIONAL OIL DEVELOPMENT EXPENDITURES IN THE COMPANY'S HISTORY BUT IT TOOK SIX YEARS AFTER THE INITIAL DISCOVERY FOR AMOCO TO FIGURE OUT HOW TO OVERCOME A HARSH DEEPWATER ENVIRONMENT WE HAD TO SHARPEN THE PENCIL ON THIS ONE SAID MICHAEL DRENNON THE PROJECT MANAGER EVEN AFTER PARING COSTS TO MAKE LIUHUA PROFITABLE IT IS NOT A BOOMING ECONOMIC PROJECT HE SAID RATHER THAN ERECTING A LARGE PLATFORM IN 1000 FEET OF WATER THE COMPANY PLANS TO BUILD A FLOATINGPRODUCTION SYSTEM BY MODIFYING AN OIL TANKER THAT WILL COST HALF AS MUCH THE VESSEL WILL PROCESS THE CRUDE AND STORE IT IN ITS HOLD AND THE OIL WILL THEN BE PICKED UP PERIODICALLY BY OTHER TANKERS NORMALLY OFFSHORE PLATFORMS TRANSPORT OIL TO SHORE THROUGH A PIPELINE THE FIELD 120 MILES SOUTHEAST OF HONG KONG WAS DISCOVERED IN 1987 BUT AMOCO RECEIVED APPROVAL TO GO AHEAD WITH DEVELOPMENT ONLY YESTERDAY FROM CHINA'S ENERGY MINISTRY AMOCO HOLDS A 49 INTEREST IN THE PROJECT CHINA OFFSHORE OIL NANHAI EAST OWNED BY THE GOVERNMENT OWNS THE REMAINDER WHEN CHINA OPENED THE SOUTH CHINA SEA TO WESTERN OIL COMPANIES IN THE 1980S THE INDUSTRY ENTHUSIASTICALLY MOVED IN BELIEVING IT WOULD BE ONE OF THE BRIGHTEST NEW EXPLORATION AREAS IN THE WORLD SOME EXECUTIVES ESTIMATED RESERVES OF AS MANY AS 50 BILLION BARRELS BUT THERE HAVE BEEN ONLY A SMATTERING OF SIZABLE DISCOVERIES AND TOUGH FINANCIAL TERMS WITH THE CHINESE GOVERNMENT HAVE MADE SMALLER FINDS UNECONOMICAL INDUSTRY EXECUTIVES SAID THE SOUTH CHINA SEA IS PROBABLY THE BIGGEST DISAPPOINTMENT IN THE INDUSTRY IN THE PAST DECADE SAID BRYAN JACOBOSKI AN OIL ANALYST AT PAINEWEBBER INC IN NEW YORK EVERYBODY TOOK A SHOT AT IT VIRTUALLY EVERY COMPANY IN THE INDUSTRY HAD ACREAGE THERE AND JUST ABOUT EVERYBODY WALKED AWAY DISAPPOINTED EXECUTIVES OF AMOCO BASED IN CHICAGO WOULDN'T DISCLOSE THEIR ESTIMATES OF LIUHUA'S POTENTIAL PROFITABILITY OR RESERVE SIZE BUT SAID THE CHINESE GOVERNMENT BELIEVES IT TO BE THE LARGEST DISCOVERY IN THE SEA MR JACOBOSKI SAID POLITICAL SENSITIVITIES IN CHINA DETER OIL COMPANIES FROM MAKING SUCH ESTIMATES PUBLICLY THEY FEEL THE CHINESE WOULDN'T LIKE THAT THAT THESE RAPACIOUS CAPITALISTS ARE GOING TO MAKE MILLIONS AND MILLIONS OF DOLLARS OFF THEIR NATIONAL PATRIMONY HE SAID MR DRENNON THE LIUHUA PROJECT MANAGER SAID THE FIELD WILL BEGIN PRODUCTION IN EARLY 1996 AND HIT PEAK OUTPUT RATES OF 50000 TO 60000 BARRELS DAILY BY THE SECOND HALF THAT WILL LAST FOR TWO TO THREE YEARS HE SAID AND THEN DROP OFF QUICKLY MR DRENNON SAID THAT THE FIELD DOESN'T CONTAIN ANY NATURAL GAS WHICH NORMALLY PROVIDES UNDERGROUND PRESSURE TO PRODUCE OIL INSTEAD THE FIELD SITS ATOP AN AQUIFER AND THE WATER WILL PUSH UP THE OIL BUT THE FIELD WILL ALSO PRODUCE A LOT OF WATER A CUMBERSOME COSTLY AND COMPLEX PRODUCTION SITUATION 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 9304200144 930420 MELLON PLANS TO REDEEM NOTES MELLON WILL REDEEM THE NOTES AT 100 OF THEIR PRINCIPAL AMOUNT PLUS ACCRUED INTEREST TO JUNE 1 9304200143 930420 WHO'S NEWS SUMMIT BANCORP SUMMIT BANCORP BELLEVUE WASH MARGARET HOFMAN 45YEAROLD CHIEF EXECUTIVE OFFICER OF FLUKE CAPITAL MANAGEMENT LIMITED PARTNERSHIP WAS NAMED A DIRECTOR OF THIS THRIFTHOLDING CONCERN FILLING A VACANCY 9304200142 930420 MARKETING & MEDIA ABC HAD PROFIT IN FIRST PERIOD OF 584 MILLION BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CAPITAL CITIES/ABC INC REPORTED FIRSTQUARTER NET INCOME OF 584 MILLION OR 355 A SHARE COMPARED WITH A LOSS OF 1015 MILLION OR 612 A SHARE IN THE PREVIOUS YEAR AFTER A RESTATEMENT OF THE 1992 PERIOD'S EARNINGS FOR ACCOUNTING CHANGES BEFORE THE CUMULATIVE EFFECT OF THE ACCOUNTING CHANGES AND A ONETIME CHARGE OF 121 MILLION PROFIT IN THE FIRST QUARTER ROSE 69 TO 705 MILLION FROM 417 MILLION IN THE PREVIOUS YEAR'S PERIOD ON A PER SHARE BASIS EARNINGS ROSE 71 TO 429 FROM 251 IN THE 1992 PERIOD WHEN THERE WAS A SLIGHTLY HIGHER NUMBER OF SHARES OUTSTANDING THE COMPANY'S EXTRAORDINARY CHARGE IN THE FIRST QUARTER RELATED TO REDEMPTION OF DEBT WHICH IT SAID WILL RESULT IN LOWER NET INTEREST EXPENSE OVERALL COMPANY REVENUE ROSE 8 IN THE PERIOD TO 118 BILLION THE INCREASE WAS DUE MOSTLY TO A SUBSTANTIAL INCREASE IN REVENUE FOR THE ABC TELEVISION NETWORK AND A SLIGHT INCREASE IN REVENUE AT ABC'S EIGHT OWNED TELEVISION STATIONS THE COMPANY ATTRIBUTED THE NETWORK'S REVENUE INCREASE TO MORE ADVERTISING DEMAND COMPARED WITH A YEAR EARLIER AND THE TELECAST OF TWO NATIONAL FOOTBALL LEAGUE POSTSEASON PLAYOFF GAMES THE COMPANY'S VIDEO OPERATIONS REPORTED SIGNIFICANT REVENUE INCREASES THE COMPANY SAID WHILE RADIO REVENUE IMPROVED MODERATELY PUBLISHING REVENUE WAS OFF 8 TO 2314 MILLION ALTHOUGH THE COMPANY SAID THAT WHEN 1992 DISPOSITIONS ARE FACTORED OUT MOSTLY THE SALE OF INSPIRATIONAL PUBLISHER WORD INC PUBLISHING REVENUE ACTUALLY ROSE 3 OPERATING PROFIT FOR THE FIRST QUARTER WAS 1409 MILLION UP 44 FROM THE SAME PERIOD A YEAR EARLIER WITH BROADCASTING OPERATING PROFIT INCREASING 48 TO 1279 MILLION THE NETWORK REPORTED A MODEST OPERATING PROFIT FOR THE QUARTER COMPARED WITH AN OPERATING LOSS FOR THE SAME PERIOD IN 1992 ALTHOUGH THE NETWORK'S REVENUE AND OPERATING GAINS WERE PARTIALLY OFFSET BY PROVISIONS FOR STAFF REDUCTIONS THE TV STATIONS REPORTED A SLIGHT DECLINE IN OPERATING EARNINGS PUBLISHING EARNINGS WERE UP 14 TO 229 MILLION WITH MOST OF THE GAIN REPORTED BY NEWSPAPER OPERATIONS THE FIRSTQUARTER RESULTS WERE BETTER THAN ANTICIPATED SAID ANALYST JOHN TINKER OF FURMAN SELZ INC THE COMPANY IS DOING EXTREMELY WELL HE SAID ADDING THAT THE KEY NOW WILL BE WHETHER CAPITAL CITIES/ABC CAN TURN A STRONG OPENING QUARTER INTO A STELLAR YEAR THE QUESTION IS HOW HIGH IS HIGH HERE 9304200141 930420 BRITAIN US TO OPEN TALKS MAY 5 ON AIRLINE TRAVEL SPECIAL TO THE WALL STREET JOURNAL LONDON BRITAIN AND THE US AGREED TO BEGIN TALKS MAY 5 AIMED AT LIBERALIZING AIR TRAVEL BETWEEN THE TWO COUNTRIES THE AGREEMENT FOLLOWED A MEETING BETWEEN BRITISH TRANSPORT SECRETARY JOHN MACGREGOR AND US TRANSPORTATION SECRETARY FEDERICO PENA ON WAYS TO RESOLVE A DISPUTE OVER COMMERCIAL AIRLINE RIGHTS TO EACH COUNTRY THE DISPUTE WAS TRIGGERED BY BRITISH AIRWAYS PLC'S MOVE EARLIER THIS YEAR TO GAIN A 199 STAKE IN USAIR INC FOR A 300 MILLION CASH INJECTION INTO THE AILING US AIRLINE USAIR INC IS A UNIT OF USAIR GROUP INC THE TALKS WILL REOPEN A BILATERAL AGREEMENT THAT HAS BEEN CRITICIZED BY US AIRLINES BECAUSE IT REQUIRES THEM TO SHARE CODES WITH BRITISH CARRIERS BUT DOESN'T ALLOW ANY GREATER ACCESS TO LONDON'S HEATHROW AIRPORT IN A JOINT STATEMENT AFTER THE FIRST MEETING BETWEEN MR MACGREGOR AND MR PENA THE TWO SAID A SUCCESSFUL OUTCOME OF THE NEW TALKS WILL REQUIRE SIGNIFICANT CHANGES AND DIFFICULT POSITIONS ON BOTH SIDES THE OFFICIALS SET A ONEYEAR TARGET FOR RESOLVING THE DIFFERENCES BETWEEN THE TWO COUNTRIES 9304200140 930420 WHO'S NEWS PARKER HANNIFIN CORP PARKER HANNIFIN CORP CLEVELAND STEPHEN L HAYES 51 YEARS OLD WAS NAMED VICE PRESIDENT OF THIS MAKER OF MOTIONCONTROL PARTS AND SYSTEMS AND PRESIDENT OF THE COMPANY'S PARKER BERTEA AEROSPACE GROUP HE FORMERLY WAS VICE PRESIDENT OF THE UNIT MR HAYES SUCCEEDS ROBERT H RAU 56 WHO RESIGNED TO BECOME PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ROHR INC 9304200139 930420 CONWEST EXPLORATION LTD TORONTO CONWEST EXPLORATION LTD SAID UNDERWRITERS AGREED TO PURCHASE THREE MILLION CLASS B SUBORDINATE VOTING SHARES OF CONWEST AT 1825 CANADIAN DOLLARS US1450 EACH THE TRANSACTION WHICH IS EXPECTED TO CLOSE MAY 5 IS SUBJECT TO THE FILING OF A SHORTFORM PROSPECTUS AND REGULATORY APPROVALS THE TORONTO OIL GAS AND MINING COMPANY'S CLASS B STOCK CLOSED AT C19 ON THE TORONTO STOCK EXCHANGE YESTERDAY UNCHANGED FROM FRIDAY THE COMPANY HAD 18 MILLION CLASS B SHARES OUTSTANDING AT LAST REPORT 9304200138 930420 FDA SAYS NUTRASWEET CAN BE INCLUDED IN BEER DEERFIELD ILL NUTRASWEET IN SODA POP IS COMMON BUT IN BEER THE US FOOD AND DRUG ADMINISTRATION AFTER YEARS OF CONSIDERATION HAS APPROVED AN APPLICATION SUBMITTED BY A BREWERY TO USE THE ARTIFICIAL SWEETENER ASPARTAME IN LOWALCOHOL BEER ALSO APPROVED WAS ASPARTAME'S USE IN NONALCOHOLIC BEVERAGES SUCH AS SHELFSTABLE FRUIT JUICES AND IN CANDIES AND COMMERCIAL BAKED GOODS NUTRASWEET A UNIT OF MONSANTO CO WOULDN'T DISCLOSE WHAT PRODUCTS IN THOSE CATEGORIES WOULD CONTAIN ITS NUTRASWEET BRAND SWEETENER BUT SAID IT WAS WORKING CLOSELY WITH SEVERAL UNIDENTIFIED CUSTOMERS THE APPLICATION FOR ASPARTAME'S USE IN LOWALCOHOL BEER WAS SUBMITTED TO THE GOVERNMENT SEVERAL YEARS AGO BY STROH BREWING CO DETROIT YESTERDAY A SCIENTIST THERE SAID THE BREWERY HOLDS A PATENT FOR ASPARTAME'S USE IN AMOUNTS TOO LOW TO GIVE A SWEET TASTE TO MAKE BEER SMOOTHER IMPROVE ITS BODY AND LEAVE LESS OF A BITTER AFTERTASTE NOW THAT SUCH USE IS APPROVED STROH WILL EVALUATE WHETHER TO PROCEED THE SCIENTIST SAID NUTRASWEET FIRST WON USE AS A FOOD INGREDIENT IN 1981 9304200137 930420 GIGATRONICS INC TO CUT STAFF 7 PLEASANT HILL CALIF CITING LOWER DEMAND FROM DEFENSE MARKETS GIGATRONICS INC SAID IT WILL CUT ITS STAFF 7 BRINGING ITS WORK FORCE TO ABOUT 170 THE COMPANY SAID THE CUTS WERE MADE TO REDUCE MANUFACTURING CAPACITY AND OPERATING COSTS GIGATRONICS A MAKER OF MICROWAVE SIGNAL GENERATION INSTRUMENTS SAID ITS BACKLOG HAS DECLINED AND ITS LEVEL OF DEFENSERELATED BOOKINGS REMAINS UNCERTAIN 9304200136 930420 WHO'S NEWS SHL SYSTEMHOUSE INC SHL SYSTEMHOUSE INC OTTAWA JAMES K BURNS WAS NAMED TO THE NEW POSITION OF PRESIDENT AND CHIEF OPERATING OFFICER OF THIS COMPUTER SYSTEMS COMPANY MR BURNS 45 YEARS OLD PREVIOUSLY HEADED THE COMPANY'S US AND LATIN AMERICAN OPERATIONS HE WILL CONTINUE TO BE RESPONSIBLE FOR THOSE ACTIVITIES AS WELL AS THE COMPANY'S SALES AND CUSTOMER SERVICE OPERATIONS IN EUROPE AND ASIA 9304200135 930420 GBK RAISES OFFERS FOR PARTNERSHIPS SOLD BY PRUDENTIAL UNIT TULSA OKLA OIL MAN GEORGE B KAISER SWEETENED HIS TENDER OFFERS FOR ENERGY PARTNERSHIPS SOLD BY PRUDENTIALBACHE ENERGY PRODUCTION A UNIT OF PRUDENTIAL SECURITIES INC MR KAISER'S GBK ACQUISITION CORP VALUED ITS NEW OFFERS FOR 30 PARTNERSHIPS AT 265 MILLION UP 88 FROM 141 MILLION AS ADJUSTED TO REFLECT JANUARY DISTRIBUTIONS BY THE PARTNERSHIPS THE NEW OFFER EXPIRES MAY 3 THE PARTNERSHIPS HAVE BEEN THE SUBJECT OF A CLASSACTION LAWSUIT BY DISGRUNTLED INVESTORS BEFORE THE ORIGINAL GBK OFFERS THE PRUDENTIAL UNIT HAD AGREED WITH PLAINTIFFS' LAWYERS IN THE CASE TO A SETTLEMENT IN WHICH AMONG OTHER THINGS INVESTORS WOULD GET A SMALL CASH PAYMENT AND THE PARTNERSHIPS WOULD BE CONVERTED INTO A NEW COMPANY GBK'S REVISED TENDER OFFER INVOLVES 30 OF THE 35 PARTNERSHIPS ONE FEWER THAN THE ORIGINAL OFFER GBK SAID ITS ORIGINAL OFFER WAS LOWER BECAUSE OF THE LIKELY CONTINUED INVOLVEMENT IN THE PARTNERSHIPS OF PRUDENTIAL AND GRAHAM RESOURCES CORP COVINGTON LA THE GENERAL PARTNERS WITH THEIR EXCESSIVE OVERHEAD EXPENSES CHARGED TO THE PARTNERSHIPS BUT PRUDENTIAL'S CHANGE OF DIRECTION IN WHICH IT IS NOW SEEKING A SALE OF THE PARTNERSHIPS AND IS EXPECTED TO WITHDRAW ITS SETTLEMENT PROPOSAL ALLOWS A HIGHER VALUATION GBK SAID PRUDENTIALBACHE ENERGY HAD CALLED THE ORIGINAL GBK OFFERS INADEQUATE URGED PARTNERSHIP INVESTORS NOT TO TENDER THEIR STAKES AND INVITED HIGHER OFFERS YESTERDAY A SPOKESMAN FOR PRUDENTIALBACHE SAID IT WAS PREMATURE TO COMMENT ON THE SWEETENED OFFERS BECAUSE IT HADN'T SEEN FORMAL PAPERS ON THE REVISIONS ACCORDING TO THE UNIT ABOUT 14 BILLION WAS INVESTED IN THE ENERGY PARTNERSHIPSDURING THE MID1980S DISTRIBUTIONS OF MORE THAN 600 MILLION HAVE BEEN MADE TO THE INVESTORS OVER THAT TIME PRUDENTIAL SECURITIES IS A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA NEWARK NJ 9304200134 930420 US HOMECARE VENTURE HARTSDALE NY US HOMECARE CORP SAID IT ESTABLISHED A LIMITED PARTNERSHIP TO PROVIDE CAPITAL TO COMPANIES PROVIDING PRODUCTS OR SERVICES TO THE HOME HEALTH CARE INDUSTRY THE VENTURE USHO VENTURES LIMITED PARTNERSHIP HAS 5375000 IN FUNDING INCLUDING 1 MILLION COMMITTED BY US HOMECARE AND THE BALANCE FROM A PRIVATE PLACEMENT US HOMECARE PROVIDES HOME HEALTH CARE SERVICES INCLUDING NURSING CARE AND INFUSION THERAPY 9304200133 930420 WHO'S NEWS ANALYTICAL TECHNOLOGY INC ANALYTICAL TECHNOLOGY INC BOSTON ROBERT E MCGILL III WAS ELECTED A DIRECTOR INCREASING BOARD MEMBERSHIP TO EIGHT MR MCGILL 61 YEARS OLD IS EXECUTIVE VICE PRESIDENT FINANCE AND ADMINISTRATION AT SPECIALTY CHEMICALS CONCERN DEXTER CORP OF WINDSOR LOCKS CONN ANALYTICAL TECHNOLOGY MAKES INSTRUMENTS DESIGNED TO DETECT AND MEASURE COMPLEX CHEMICAL SUBSTANCES IN A BROAD RANGE OF LIQUIDS SOLIDS AND GASES 9304200132 930420 CROWN CORK'S CHILEAN VENTURE PHILADELPHIA CROWN CORK & SEAL CO SAID IT SIGNED A LETTER OF INTENT TO FORM A JOINT VENTURE WITH CRISTALERIAS DE CHILE SA A CHILEAN GLASS BOTTLE MAKER CROWN CORK SAID IT PLANS TO INVEST 32 MILLION IN THE VENTURE WHICH WILL PRODUCE ALUMINUM BEER AND BEVERAGE CANS AND PLASTIC TWIST CAPS IT ADDED THAT IT EXPECTS CONSTRUCTION TO BEGIN IN THE SECOND QUARTER AND TWISTCAP PRODUCTION TO BEGIN LATER THIS YEAR CAN PRODUCTION IS EXPECTED TO BEGIN IN THE THIRD QUARTER OF 1994 CROWN CORK & SEAL A PRODUCER OF METAL AND PLASTIC CONTAINERS ALSO OWNS CROWN CORK DE CHILE SA A CHILEAN MAKER OF AEROSOL AND FOOD CANS 9304200131 930420 POLAROID UNVEILS FILM RECORDER CAMBRIDGE MASS POLAROID CORP INTRODUCED A FIFTHGENERATION DESKTOP COLOR FILM RECORDER THAT'S ABOUT 10 TIMES CHEAPER THAN ITS LAST MODEL THE NEW DIGITAL PALETTE S SERIES WHICH HAS FEWER ACCESSORIES COPIES IMAGES FROM COMPUTER SCREENS ONTO FILM TO PRODUCE SLIDES SIGNIFICANTLY FASTER THAN PREVIOUS MODELS POLAROID SAID THE RECORDERS WILL BE SHIPPED MAY 1 FOR A SUGGESTED PRICE OF 39 TO 54 THE PHOTOGRAPHIC EQUIPMENT AND FILM CONCERN SAID THE PREVIOUS MODELS COST ABOUT 550 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 9304200130 930420 OTC FOCUS INTEL FALLS 11 ON UNEXPECTED DISMISSAL OF AMD SUIT LEADS DROP IN OTC MARKET BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INTEL CORP'S 12 1/4POINT SLIDE LED A DECLINE IN THE OVERTHECOUNTER MARKET THE NASDAQ COMPOSITE INDEX DROPPED 375 OR 056 TO 66303 DECLINING ISSUES OUTNUMBERED ADVANCERS 1438 TO 1198 ON TOTAL VOLUME OF 2228 MILLION SHARES DOWN FROM FRIDAY'S 2268 MILLION SHARES THE DAY'S MOST ACTIVE STOCK INTEL FELL 11 TO 97 3/4 ON 177 MILLION SHARES FIVE TIMES NORMAL VOLUME THE SELLOFF BEGAN LATE FRIDAY AFTERNOON AFTER A FEDERAL JUDGE UNEXPECTEDLY DISMISSED A JURY VERDICT AND CLEARED THE WAY FOR A COMPETITIVE CHIP MAKER ADVANCED MICRO DEVICES TO START SELLING CLONES OF INTEL'S PROFITABLE 486 MICROPROCESSORS YESTERDAY ADVANCED MICRO DEVICES ROSE 3 7/8 TO 28 ON THE NEW YORK STOCK EXCHANGE THERE IS SOME PANIC SELLING ON INTEL THE JUDGE'S REVERSAL CAUGHT A LOT OF PEOPLE OFFGUARD SAYS JERRY NEWMAN AN INSTITUTIONAL TRADER WITH COWEN & CO IN SAN FRANCISCO IN AFTERHOURS TRADING LAST FRIDAY INTEL PLUNGED ABOUT 15 TO 95 AND AMD'S STOCK JUMPED ABOUT FOUR TO 28 BUT YESTERDAY SEVERAL ANALYSTS SAID THE SELLOFF WAS AN OVERREACTION AND HAD CREATED AN OPPORTUNITY TO BUY INTEL'S STOCK AT A LOWER PRICE DEAN WITTER REYNOLDS ANALYST EUGENE GLAZER RAISED HIS INVESTMENT RATING TO BUY FROM NEUTRAL MANY ANALYSTS CONSIDER INTEL A BARGAIN AT THE CURRENT PRICE OF ROUGHLY NINE TIMES THE STREET'S 1993 EARNINGS ESTIMATES OF 10 TO 11 A SHARE UP FROM 495 LAST YEAR SEVERAL LARGE TECHNOLOGY STOCKS SLID DELL COMPUTER DROPPED 1 3/8 TO 30 3/8 CISCO SYSTEMS SLIPPED 1 1/2 TO 43 AND ORACLE SYSTEMS EASED 1/2 TO 32 5/8 BUYERS ARE TURNING TO HEALTH CARE AND BIOTECHNOLOGY STOCKS SAYS COWEN'S MR NEWMAN WE'RE SEEING SELLING IN MANY TECH STOCKS BUT SOME BUYING POWER IS NOW ROTATING TO THE DOWNANDOUT HEALTH CARE AND BIOTECH STOCKS HE SAYS DILLON READ & CO BIOTECH ANALYST LARRY BLOOM IN THE MORNING REITERATED HIS BUY RATING ON AMGEN AND REGENERON AMGEN JUMPED 1 7/8 TO 39 1/8 AND REGENERON ROSE 7/8 TO 14 3/8 SEVERAL LARGE MEDICALRELATED STOCKS POSTED GAINS CHIRON LEAPED 4 3/4 TO 50 1/2 BIOGEN CLIMBED 2 3/4 TO 31 1/4 AND US HEALTHCARE ROSE 2 3/8 TO 40 1/2 ELSEWHERE CLEARLY CANADIAN BEVERAGE OF VANCOUVER BRITISH COLUMBIA ADDED 1 1/2 TO 9 1/8 KEMPER SECURITIES UPGRADED THE SODA COMPANY TO LONGTERM BUY FROM HOLD CITING THE COMPANY'S SHARE PRICE FIRSTIER FINANCIAL OF OMAHA NEB JUMPED 9 TO 54 1/2 AFTER REPORTING IMPROVED FIRSTQUARTER NET INCOME OF 1 A SHARE COMPARED WITH 77 CENTS A SHARE A YEAR EARLIER BIG BOARDLISTED BANC ONE SAID IT WILL BUY FIRSTIER FINANCIAL IN A STOCK SWAP VALUED AT 712 MILLION ARMOR ALL PRODUCTS LOST 5/8 TO 16 3/4 DESPITE REPORTING FISCAL FOURTHQUARTER NET OF 38 CENTS A SHARE COMPARED WITH 32 CENTS A SHARE IN THE YEAREARLIER QUARTER THE COMPANY MARKETS CONSUMER PRODUCTS AND IS BASED IN ALISO VIEJO CALIF HAVERTY FURNITURE'S EARNINGS PUSHED ITS PRICE UP 1 3/8 TO 20 1/4 THE ATLANTABASED COMPANY POSTED FIRSTQUARTER NET OF 32 CENTS A SHARE ON MORE SHARES COMPARED WITH EARNINGS OF 13 CENTS A SHARE A YEAR AGO THE COMPANY SAID ITS FIRSTQUARTER SAME STORE SALES ALSO ROSE 157 GAMING CORP LOST 3/8 TO 13 1/4 THE COMPANY'S CHIEF FINANCIAL OFFICER RESIGNED CITING POTENTIAL CONFLICTS OF INTEREST ARISING FROM HIS OWN BUSINESS AFFAIRS GAMING CORP ALSO SAID IT HOLDS A 50 INTEREST IN A JOINT VENTURE HAVING AN OPTION TO ACQUIRE A GAMING SITE AND 1000 ACRES OF ADJOINING LAND LESS THAN 30 MILES FROM MEMPHIS TENN THE SITE IS ON BUCK LAKE ALONG THE MISSISSIPPI RIVER WHICH QUALIFIES AS A LEGAL GAMING SITE UNDER MISSISSIPPI'S GAMING REGULATIONS GAMING CORP'S PARTNER IN THE JOINT VENTURE IS GRAND CASINOS OF PLYMOUTH MINN WHICH ADDED 1 1/4 TO 36 1/2 CAITLIN MOLLISON CONTRIBUTED TO THIS ARTICLE 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 9304200129 930420 GE IS SEEKING TO SELL PUBLIC MUTUAL FUNDS BY JONATHAN CLEMENTS AND ROBERT MCGOUGH STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK GENERAL ELECTRIC CO COULD SOON BE MUSCLING ITS WAY FURTHER INTO THE MUTUAL FUND BUSINESS THE FIRM ALREADY A POWERHOUSE IN FINANCIAL SERVICES HAS ASKED THE SECURITIES AND EXCHANGE COMMISSION FOR THE ABILITY TO SELL MUTUAL FUNDS TO THE GENERAL PUBLIC IT SEEMS THE FAIRFIELD CONN COMPANY ISN'T GOING AFTER REGULAR MOM AND POP INVESTORS INSTEAD THERE ARE SIGNS THAT THE FIRM IS LOOKING TO CRACK INTO THE FASTGROWING MARKET FOR 401K RETIREMENT PLANS WITH THESE PLANS EMPLOYEES CAN SAVE BY PUTTING MONEY INTO AN ARRAY OF INVESTMENTS FREQUENTLY MUTUAL FUNDS BY MARKETING ONLY TO PENSION PLANS GE WOULD REDUCE THE EXTENT TO WHICH THE NEW FUNDS WOULD COMPETE WITH FUNDS SOLD AND MANAGED BY KIDDER PEABODY ITS BROKERAGE HOUSE SUBSIDIARY GE INVESTMENT MANAGEMENT THE GE UNIT THAT WANTS PERMISSION TO SELL MUTUAL FUNDS IS KEEPING MUM ON THE DETAILS A COMPANY SPOKESWOMAN SAID SEC APPROVAL FOR THE APPLICATION TO FORM A BROKERDEALER WAS LIKELY IN THE VERY NEAR FUTURE BUT SHE DECLINED TO SAY WHETHER GE PLANNED TO ACTUALLY SELL FUNDS TO THE PUBLIC THE FUNDS IN QUESTION WERE LAUNCHED JAN 4 GE FORMED A NEW FAMILY OF SIX NOLOAD MUTUAL FUNDS WHICH CURRENTLY ARE SOLD ONLY TO GE EMPLOYEES THEY COMPRISE A GLOBAL STOCK FUND A US STOCK FUND A GLOBAL FUND INVESTING IN BOTH STOCKS AND BONDS A TAXEXEMPT BOND FUND A TAXABLE BOND FUND AND A MONEY MARKET FUND GE IS LIKELY TO USE THIS NEW FAMILY OF SIX FUNDS TO EXPAND ITS MANAGEMENT OF 401K AND OTHER DEFINED CONTRIBUTION PENSION PLANS ACCORDING TO PEOPLE IN THE MUTUAL FUND INDUSTRY UNLIKE THE TRADITIONAL DEFINEDBENEFIT PENSION BUSINESS WHICH HAS REMAINED STAGNANT IN RECENT YEARS THE DEFINEDCONTRIBUTION BUSINESS HAS BEEN GROWING RAPIDLY IN A DEFINEDBENEFIT PENSION PLAN A COMPANY PROMISES TO PAY EMPLOYEES A SET AMOUNT ON RETIREMENT IN A DEFINEDCONTRIBUTION PLAN THE RETIREE'S PENSION DEPENDS ON HOW WELL THE PLAN'S INVESTMENTS PERFORM EVEN WITHOUT THE NEW FUNDS GE IS ALREADY A MAJOR PLAYER IN THE MUTUAL FUND BUSINESS NOTES AVI NACHMANY AN ANALYST WITH STRATEGIC INSIGHT A NEW YORK CONSULTING FIRM GE INVESTMENT MANAGEMENT WHICH WAS ORIGINALLY ESTABLISHED MORE THAN 60 YEARS AGO TO RUN GE'S PENSION ASSETS CURRENTLY MANAGES 43 BILLION INCLUDING 83 BILLION IN MUTUAL FUNDS THAT ARE SOLD TO GE EMPLOYEES AND RETIREES THESE OLDER FUNDS INCLUDE THE ELFUN FAMILY OF FUNDS BOUGHT BY UPPERLEVEL GE EXECUTIVES AND THE GE S&S FUNDS WHICH EMPLOYEES CAN BUY AS PART OF GE'S 401K PLAN GE ALSO MANAGES PENSION ASSETS FOR ABOUT 40 OUTSIDE CLIENTS BECAUSE OF THESE FUNDS GE INVESTMENT MANAGEMENT RANKED AS THE COUNTRY'S 44TH LARGEST MUTUAL FUND MANAGER AT THE END OF 1992 SAYS MR NACHMANY ADD IN THE 5 BILLION IN MUTUAL FUND MONEY MANAGED BY KIDDER PEABODY AND GE ACTUALLY RANKED AS THE 30TH LARGEST FUND GROUP THAT PUTS GE AHEAD OF WELLKNOWN FUND COMPANIES SUCH AS COLONIAL GROUP LORD ABBETT & CO AND EATON VANCE CORP GE ALSO TOWERS OVER OTHER COMPANYSPONSORED FUND GROUPS MR NACHMANY SAYS HE NOTES THAT AMR CORP OPERATOR OF AMERICAN AIRLINES HAD JUST 28 BILLION IN ITS MUTUAL FUNDS AT YEAREND 1992 WHILE OWENSILLINOIS' HARBOR GROUP HAD GARNERED JUST 14 BILLION IN ASSETS AS A CORPORATE FUND GROUP GE IS CLEARLY THE LARGEST AND MOST SUCCESSFUL SAYS MR NACHMANY YOU LOOK AT WHAT THEY'RE DOING WITH ACQUISITIONS THEY'RE CLEARLY DETERMINED TO BECOME A BIGGER FORCE IN THE ASSET MANAGEMENT BUSINESS THIS IS THE SECOND MOVE BY GE INTO MUTUAL FUNDS THIS YEAR IN JANUARY GE CAPITAL THE HUGE FINANCIAL SUBSIDIARY OF GE ANNOUNCED A DEFINITIVE AGREEMENT TO BUY GNA CORP A WHOLESALER OF VARIABLE ANNUITIES AND MUTUAL FUNDS FOR 525 MILLION GNA SELLS MUTUAL FUNDS THROUGH BANKS WHICH HAVE BECOME THE FASTESTGROWING OUTLET FOR MUTUAL FUNDS IN RECENT YEARS GE INVESTMENT MANAGEMENT WHICH FILED TO BEGIN SELLING MUTUAL FUNDS TO THE PUBLIC IS A SEPARATE UNIT OF GE FROM GE CAPITAL ANY EXPANSION BY GE INTO MUTUAL FUNDS WOULD MAKE A LOT OF SENSE SAYS A MICHAEL LIPPER PRESIDENT OF FUND RESEARCHERS LIPPER ANALYTICAL SERVICES THEY'VE BEEN IN THE MUTUAL FUND BUSINESS FOR A LONG TIME WITH THEIR OWN FUNDS FOR THEIR OWN EMPLOYEES HE SAYS IT'S AN ORDERLY PROGRESSION BUT MR LIPPER DOESN'T THINK THE NEW VENTURE WILL BE A BONANZA FOR GE SHAREHOLDERS ANYTIME SOON WILL IT MEAN ANYTHING TO GE'S EARNING PER SHARE IN THE NEAR FUTURE I DOUBT IT WILL IT MEAN SOMETHING FOR THEIR ABILITY TO SELL PRODUCTS AND SERVICES TO NEW HOUSEHOLDS POSSIBLY JUST BECAUSE YOU HAVE A GE FUND I DON'T THINK YOU'RE GOING TO BUY A DISHWASHER BUT YOU MIGHT BUY OTHER FINANCIAL SERVICES FROM THEM 9304200128 930420 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED APRIL 16 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER ARLINGTON VA WILL REDEEM ON JUNE 1 1993 109000 PRINCIPAL FOR EACH YEAR OF MATURITY FOR ITS SERIES 1983 PUBLIC IMPROVEMENT BONDS DUE JUNE 1 19942000 SIGNET TRUST CO IS ESCROW AGENT BEAVER COUNTY PA INDUSTRIAL DEVELOPMENT AUTHORITY WILL REDEEM ON JUNE 1 1993 100000 PRINCIPAL AMOUNT OF ITS 5 3/4 POLLUTION CONTROL REVENUE BONDS 1973 SERIES A SOCIETY NATIONAL BANK CLEVELAND IS TRUSTEE MARYVILLE ILL WILL REDEEM ON MAY 1 1993 540000 PRINCIPAL AMOUNT OF THE FOLLOWING WATERWORKS AND SEWERAGE REVENUE BONDS SERIES 1978 DUE NOV 1 OF THE INDICATED YEARS 62 DUE 1993 63 DUE 1994 635 DUE 1995 64 DUE 1996 645 DUE 1997 65 DUE 19982000 655 DUE 20012002 AND 66 DUE 20032007 FIRST OF AMERICA BANKSOUTHEAST MICHIGAN IS PAYING AGENT MINNEAPOLIS MINN HOUSING & REDEVELOPMENT AUTHORITY WILL REDEEM ON MAY 1 1993 330000 PRINCIPAL AMOUNT OF ITS 6 3/4 SINGLE FAMILY MORTGAGE REVENUE BONDS DUE ON MAY 1 2009 NORWEST BANK MINNESOTA MINNEAPOLIS IS TRUSTEE NEW YORK STATE ENERGY RESEARCH & DEVELOPMENT AUTHORITY WILL REDEEM ON MAY 1 1993 ITS 9 1/8 GAS FACILITIES REVENUE BONDS SERIES 1983A DUE MAY 1 2013 CHEMICAL BANK NEW YORK IS TRUSTEE ROCHELLE COMMUNITY HOSPITAL ASSOCIATION WILL REDEEM ON JUNE 1 1993 75000 PRINCIPAL AMOUNT OF ITS 8 HOSPITAL MORTGAGE REVENUE BONDS SERIES 1969 DUE JUNE 1 1999 FIRST NATIONAL BANK AND TRUST ROCKFORD ILL IS TRUSTEE TRIBOROUGH BRIDGE & TUNNEL AUTHORITY WILL REDEEM ON MAY 14 1993 ITS GENERAL PURPOSE REVENUE BONDS SERIES A DUE JAN 1 1994 MORGAN GUARANTY TRUST CO NEW YORK IS TRUSTEE CENTRAL ILLINOIS PUBLIC SERVICE CO WILL REDEEM ON MAY 7 1993 THE FOLLOWING 7 1/2 FIRST MORTGAGE BONDS 35000000 PRINCIPAL AMOUNT OF ITS SERIES N DUE APRIL 1 2001 AND 30000000 PRINCIPAL AMOUNT OF ITS SERIES P DUE APRIL 1 2002 CONTINENTAL BANK CHICAGO IS TRUSTEE FEDERAL NATIONAL MORTGAGE ASSOCIATION WILL REDEEM ON MAY 13 1993 250000 000 PRINCIPAL AMOUNT OF ITS 9 DEBENTURES SERIES SM1997K DUE NOV 13 1997 HYDROQUEBEC WILL REDEEM ON MAY 12 1993 ITS 86 DEBENTURES SERIES CZ DUE SEPT 15 2006 BANK OF MONTREAL TRUST CO NEW YORK IS PAYING AGENT LEX FAY CO WILL REDEEM ON MAY 1 1993 40000 PRINCIPAL AMOUNT OF ITS 7 SECTION 8 HOUSING REVENUE BONDS 1979 SERIES A DUE MAY 1 1999 CENTRAL BANK & TRUST CO LEXINGTON KY IS TRUSTEE NORTHERN ILLINOIS GAS CO WILL REDEEM ON MAY 16 1993 43240000 PRINCIPAL AMOUNT OF ITS 8 3/4 FIRST MORTGAGE BONDS DUE DEC 1 2016 CONTINENTAL BANK CHICAGO IS TRUSTEE OHIO EDISON CO WILL REDEEM ON APRIL 26 1993 THE FOLLOWING FIRST MORTGAGE REVENUE BONDS 8 1/4 SERIES 1969 DUE 1999 8 3/8 SERIES 1971 DUE 2001 8 1/8 SERIES 1973 DUE 2003 8 1/2 SERIES 1976 DUE 2006 AND 8 3/8 SERIES 1977 DUE 2007 MIDWEST CLEARING CORP NEW YORK IS DROP AGENT 9304200127 930420 NEW CHIP FROM MOTOROLA SCHAUMBURG ILL MOTOROLA INC SAID IT WILL INTRODUCE A CHIP THAT WILL ALLOW COMPUTERS TO COMMUNICATE WITHIN ONE OFFICE AS WELL AS WITH COMPUTERS IN OTHER LOCATIONS THE MICROPROCESSOR WHICH WILL BE USED BY MAKERS OF COMPUTER NETWORKING EQUIPMENT COMBINES LOCALAREA NETWORKING AND WIDEAREANETWORKING FUNCTIONS ON A SINGLE CHIP MOTOROLA SAID SHIPMENT OF THE PRODUCT IS EXPECTED IN THE FOURTH QUARTER 9304200126 930420 HOME SHOPPING OFFER IS MADE BY LIBERTY BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL LIBERTY MEDIA CORP SAID IT WILL OFFER 105 MILLION FOR AN ADDITIONAL 15 MILLION SHARES OF HOME SHOPPING NETWORK INC IN AN EFFORT TO BOLSTER HOME SHOPPING'S PLUNGING STOCK PRICE AND RESTORE CONFIDENCE IN THE BELEAGUERED ELECTRONIC RETAILER THE TENDER OFFER AT 7 A SHARE COMES ONE WEEK AFTER LIBERTY WHICH OWNS A 65 VOTING STAKE AND 23 EQUITY INTEREST IN HOME SHOPPING WITHDREW A 640 MILLION BID FOR THE ENTIRE 75 MILLION FULLY DILUTED SHARES LIBERTY DOESN'T ALREADY OWN THE WITHDRAWAL FOLLOWED A GROWING CONTROVERSY OVER ALLEGED FINANCIAL IMPROPRIETIES BY CURRENT AND FORMER HOME SHOPPING EXECUTIVES THE NEW OFFER WOULD BOOST LIBERTY'S EQUITY INTEREST IN HOME SHOPPING TO 40 BUT WOULDN'T MATERIALLY INCREASE ITS VOTING STAKE WHICH IS BASED ON LIBERTY'S HOLDINGS IN A SEPARATE SUPERVOTING CLASS OF STOCK PETER BARTON LIBERTY'S PRESIDENT AND CHIEF EXECUTIVE SAID THE DENVERBASED CABLE PROGRAMMING CONCERN WILL PAY FOR THE TRANSACTION WITH CASH ON HAND LIBERTY'S WITHDRAWAL OF THE INITIAL CASH AND STOCK OFFERING VALUED AT ROUGHLY 9 A SHARE CAME JUST DAYS BEFORE HOME SHOPPING DISCLOSED THAT THE SECURITIES AND EXCHANGE COMMISSION HAD LAUNCHED AN INFORMAL INVESTIGATION OF THE COMPANY THAT IT BELIEVES IS RELATED TO THE ALLEGATIONS OF FINANCIAL IMPROPRIETIES IN ADDITION A FEDERAL GRAND JURY IN TAMPA FLA IS INVESTIGATING THE ALLEGATIONS WHICH FIRST SURFACED IN A DIVORCE CASE IN FLORIDA INVOLVING A FORMER HOME SHOPPING EXECUTIVE LAST WEEK MAJOR FACTORING FIRMS SUSPENDED CREDIT TO A NUMBER OF APPAREL MAKERS THAT SHIP MERCHANDISE TO HOME SHOPPING CURTAILING THE COMPANY'S ABILITY TO BUY APPAREL THE RECENT EVENTS COMBINED WITH BLEAK SPECULATION ABOUT HOME SHOPPING'S FINANCIAL HEALTH HAVE PUSHED THE COMPANY'S STOCK TO NEAR ITS 52WEEK LOW OF 425 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ON MONDAY HOME SHOPPING CLOSED AT 625 UP 175 YESTERDAY MR BARTON SAID THE NEW OFFER REPRESENTS A PROFOUND STATEMENT OF CONFIDENCE IN HOME SHOPPING'S MANAGEMENT AND ITS FINANCIAL VIABILITY HE ADDED WE HOPE THIS PUTS THE UNFOUNDED ANXIETIES ABOUT THE FINANCIAL CONDITION OF HSN BEHIND US ONCE AND FOR ALL LIBERTY ACKNOWLEDGED THAT ITS EARLIER WITHDRAWAL MAY HAVE DISAPPOINTED HOME SHOPPING'S PUBLIC SHAREHOLDERS BUT THAT THE NEW ALBEIT MORE LIMITED OFFER WOULD ALLOW THEM TO SELL THEIR HOLDINGS AT A SUBSTANTIAL PREMIUM AS REPORTED ALLEGATIONS OF FINANCIAL IMPROPRIETIES HAVE BEEN LEVELED AT ROY M SPEER AND LOWELL PAXSON HOME SHOPPING'S CHAIRMAN AND FORMER PRESIDENT RESPECTIVELY IN SEVERAL LAWSUITS THE TWO HAVE DENIED THE ACCUSATIONS HOME SHOPPING IS BASED IN ST PETERSBURG FLA IN A FILING LAST WEEK WITH THE SEC HOME SHOPPING DISCLOSED THAT THE COMPANY HAD BEEN INFORMED BY THE AGENCY THAT IT IS THE TARGET OF AN INFORMAL PROBE HOME SHOPPING SAID THAT IT HAD APPEARED BEFORE THE FEDERAL GRAND JURY IN TAMPA TO PRESERVE ITS ATTORNEYCLIENT PRIVILEGE WITH RESPECT TO CERTAIN DOCUMENTS THE COMPANY ADDED THAT IT HASN'T BEEN INFORMED OF THE SCOPE OF THE GRAND JURY'S INVESTIGATION 9304200125 930420 HATFIELD OFFERS A COMPROMISE ON STIMULUS BILL PROPOSAL BY GOP SENATOR TO SAVE CLINTON'S PLAN SEEKS OFFSETTING CUTS BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENIOR REPUBLICAN ON THE SENATE APPROPRIATIONS COMMITTEE OUTLINED A COMPROMISE THAT WOULD SALVAGE NEARLY HALF OF PRESIDENT CLINTON'S STIMULUS BILL WHILE DEMANDING OFFSETTING CUTS TO COVER MUCH OF THE COST IN FUTURE YEARS THE PROPOSAL PUT FORWARD BY OREGON SEN MARK HATFIELD GOES FURTHER THAN ANYONE IN THE GOP LEADERSHIP HAS BEEN WILLING TO COMMIT AND COMES AS THE WHITE HOUSE APPEARS BENT ON PUSHING TOWARD A FINAL CONFRONTATION ON THE MEASURE REPUBLICANS WILL CAUCUS TODAY ON THE ISSUE THOUGH THERE IS NO SIGN OF RETREAT THE WHITE HOUSE IS HOPING MODERATES WILL PRESS THEIR LEADERSHIP FOR COMPROMISE BEFORE WHAT COULD BE A DOORDIE VOTE TOMORROW TO RESCUE THE BILL FROM A FILIBUSTER HOUSE DEMOCRATS HAVE LIMITED PATIENCE WITH THE PROLONGED DELAY AND ONE OPTION FOR THE PRESIDENT WOULD BE TO LAY THE BLAME ON THE GOP AND REVERT TO A STRIPPEDDOWN 4 BILLION MEASURE TO FINANCE PROMISED UNEMPLOYMENT BENEFITS FOR THE LONGTERM JOBLESS TOMORROW'S VOTE ON LIMITING DEBATE HAD BEEN SCHEDULED FOR TODAY THE DELAY WAS ANNOUNCED BY SENATE MAJORITY LEADER GEORGE MITCHELL OF MAINE AFTER HE MET FIRST WITH THE PRESIDENT AND LATER WITH SENATE MINORITY LEADER ROBERT DOLE OF KANSAS THE POSTPONEMENT APPEARS CALCULATED TO CREATE A FINAL WINDOW OF SORTS FOR NEGOTIATIONS I DO BELIEVE THE TIME HAS COME FOR BOTH SIDES TO MOVE SAID THE OREGON REPUBLICAN WHO DESCRIBED THE SCHEDULED CLOTURE VOTE AS AN ENCUMBRANCE IN GETTING TO A SOLUTION BOTH HE AND MR DOLE HAVE PREVIOUSLY SKETCHED THE OUTLINES OF THE PROPOSAL BUT WHILE THE REPUBLICAN LEADER UNDER PRESSURE FROM CONSERVATIVES HAS BEEN RELUCTANT TO COMMIT HIMSELF MR HATFIELD IS A PLAYER WITH AN INSTITUTIONAL COMMITMENT TO MOVING THE APPROPRIATIONS PROCESS AHEAD AS APPROVED BY THE HOUSE THE STIMULUS BILL CALLED FOR 163 BILLION IN NEW APPROPRIATIONS COUPLED WITH 32 BILLION TO BE RELEASED FROM EXISTING TRUST FUNDS FOR HIGHWAY AND PUBLIC WORKS THE COMBINED 195 BILLION PACKAGE WOULD BE SCALED BACK TO ABOUT 154 BILLION UNDER A REVISED WHITE HOUSE PLAN THAT THE SENATE IS TO VOTE ON TODAY MR HATFIELD'S PROPOSAL WOULD TAKE THE TOTAL DOWN TO ABOUT 85 BILLION EXTENDED UNEMPLOYMENT BENEFITS FOR THE LONGTERM JOBLESS WOULD BE FULLY FUNDED AT 4 BILLION AND ALL OF THE 298 BILLION SOUGHT BY THE WHITE HOUSE FOR HIGHWAY CONSTRUCTION WOULD BE PRESERVED IN THE CASE OF SUMMER JOBS AND MASSTRANSIT PROGRAMS THE ADMINISTRATION WOULD HAVE TO ACCEPT HALF OF ITS REVISED REQUESTS BUT FULL FUNDING OF 300 MILLION IS PROMISED FOR IMMUNIZATION PROGRAMS MR HATFIELD WOULD PERMIT PARTIAL FUNDING ELSEWHERE FOR SMALL BUSINESS RURAL WASTEWATER GRANTS AND NATURALRESOURCES PROGRAMS BUT AS PART OF THE SAME BARGAIN THE PLAN DEMANDS OFFSETTING CUTS FOR ALL SPENDING BEYOND THE 4 BILLION REQUIRED TO FINANCE JOBLESS BENEFITS IN THE CURRENT FISCAL YEAR ENDING SEPT 30 THIS WOULD REQUIRE AN ESTIMATED 492 MILLION IN SAVINGS FROM ADMINISTRATIVE ACCOUNTS THE TRUE BURDEN WOULD FALL NEXT YEAR WHEN THE PRESIDENT WOULD HAVE TO ABSORB 26 BILLION IN FURTHER CUTS TO STAY WITHIN STATUTORY BUDGET CAPS AS THE STIMULUS BILL SPENDS ITSELF OUT THE PROBLEM COULD RECUR IN FISCAL 1995 WHERE MR CLINTON ALREADY FACES IMMENSE DIFFICULTIES IN FINDING ROOM IN THE APPROPRIATIONS BUDGET FOR HIS LONGERTERM INVESTMENT INITIATIVES FOR THIS REASON THE WHITE HOUSE HAS BEEN RELUCTANT TO MOVE SO FAR TOWARD THE MODERATES A MAJOR QUESTION NOW IS WHETHER THE APPROPRIATIONS LEADERSHIP WILL REASSERT ITSELF IN A DEBATE DOMINATED BY BRICKBATS BETWEEN THE WHITE HOUSE AND REPUBLICANS SENATE APPROPRIATIONS COMMITTEE CHAIRMAN ROBERT BYRD D WVA WARMLY PRAISED MR HATFIELD YESTERDAY AND POINTEDLY SUGGESTED THAT A SOLUTION COULD BE FOUND IF THE MATTER WERE LEFT TO THE TWO MEN FOR ITS PART THE ADMINISTRATION IS WARNING OF THE RISK TO THE ECONOMY OF WATERING DOWN THE STIMULUS PLAN BOTH THE SPENDING BILL AND THE PROPOSED TEMPORARY INVESTMENT TAX CREDIT ALAN BLINDER WHO HAS BEEN NOMINATED FOR A SEAT ON THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS SAID YESTERDAY THAT THE ADMINISTRATION'S STRATEGY WAS TO STRENGTHEN THE ECONOMY BEFORE ITS DEFICITREDUCTION PACKAGE WITH TAX INCREASES AND SPENDING CUTS KICKED IN IF WE LOSE THE SPENDING COMPONENT TO A SENATE FILIBUSTER AND WE LOSE THE TEMPORARY INVESTMENT TAX CREDIT THEN THERE'S NO UPWARD PUSH FROM FISCAL POLICY SAID MR BLINDER WHO SPOKE AT AN AMERICAN ENTERPRISE INSTITUTE FORUM YOU GET FISCAL CONTRACTION RIGHT OFF THE BAT 9304200124 930420 WHO'S NEWS PHOENIX RE CORP PHOENIX RE CORP NEW YORK THIS REINSURANCE COMPANY NAMED MICHAEL J BLEISNICK 41 YEARS OLD EXECUTIVE VICE PRESIDENT FOR DOMESTIC OPERATIONS AND GORDON FORSYTH 45 EXECUTIVE VICE PRESIDENT INTERNATIONAL OPERATIONS BOTH NEWLY CREATED POSTS BOTH MEN HAD BEEN SENIOR VICE PRESIDENTS FOR THOSE RESPECTIVE AREAS ADDITIONALLY MARK W CHRISTIE 35 WAS NAMED VICE PRESIDENT DOMESTIC TREATY OPERATIONS FILLING A VACANCY EDWARD C MCBRIDE 39 WAS NAMED VICE PRESIDENT OF ITS MARINE AND AVIATION DIVISION SUCCEEDING JIM STEVENS 45 WHO RESIGNED TO PURSUE OTHER OPPORTUNITIES THE COMPANY SAID MR CHRISTIE PREVIOUSLY WAS ASSISTANT VICE PRESIDENT DOMESTIC TREATY OPERATIONS AND MR MCBRIDE HAD BEEN VICE PRESIDENT UNDERWRITING AND MARKETING FOR HARTFORD RE MANAGEMENT CO A UNIT OF ITT HARTFORD INSURANCE GROUP 9304200123 930420 AVID LUCASFILM FORM ALLIANCE TEWKSBURY MASS AVID TECHNOLOGY INC SAID IT FORMED A COLLABORATIVE ALLIANCE WITH LUCASFILM LTD AND LUCAS DIGITAL LTD TO DESIGN AND PRODUCE THE NEXT GENERATION OF HIGHEND EDITING SYSTEMS FOR MOTION PICTURE AND TELEVISION PRODUCTION AS PART OF THE ALLIANCE THE THREE COMPANIES WILL DESIGN SYSTEMS THAT REDUCE THE TIME AND COST OF PRODUCTIONS THE ALLIANCE ALSO PROVIDES AVID WITH EXCLUSIVE RIGHTS TO CERTAIN LUCASFILM TECHNOLOGY IN THE FIELD OF MOTION PICTURE AND TV EDITING AVID TECHNOLOGY IS A DEVELOPER OF FILM VIDEO AND AUDIOEDITING SYSTEMS LUCASFILM MARIN COUNTY CALIF IS A FILM AND ENTERTAINMENT CONCERN AND LUCAS DIGITAL SAN RAFAEL CALIF IS A VISUAL EFFECTS AND AUDIO POSTPRODUCTION CONCERN THE TWO COMPANIES ARE OWNED BY FILMMAKER GEORGE LUCAS 9304200121 930420 INTERNATIONAL BRIEF ASSOCIATED BRITISH FOODS PLC PRETAX EARNINGS RISE 73 INVESTMENT INCOME CITED ASSOCIATED BRITISH FOODS PLC SAID PRETAX PROFIT ROSE 73 IN THE FISCAL HALF ENDED FEB 27 FROM A RESTATED YEAREARLIER RESULT HELPED BY A 29 JUMP IN INVESTMENT INCOME AND THE ABSENCE OF AN INVESTMENT LOSS TAKEN A YEAR BEFORE THE COMPANY ALSO SAID PROFIT WILL SHOW SOME GROWTH FOR THE FULL YEAR BARRING A WORSENING IN THE UK ECONOMY PRETAX PROFIT TOTALED 161 MILLION 2454 MILLION UP FROM 150 MILLION THE RESULTS WERE SLIGHTLY LOWER THAN EXPECTED SALES ROSE 81 TO 204 BILLION 9304200120 930420 BURNHAM PACIFIC REDEMPTION SAN DIEGO BURNHAM PACIFIC PROPERTIES INC SAID IT PLANS TO REDEEM ON JUNE 11 ALL ITS 161 MILLION OF 8 1/2 CONVERTIBLE DEBENTURES DUE 2012 FOR EACH 25 DEBENTURE OUTSTANDING THE REDEMPTION WILL BE AT 1034 OF THE PRINCIPAL AMOUNT EQUAL TO 2585 PLUS ACCRUED INTEREST OF 8618 CENTS THE REAL ESTATE INVESTMENT TRUST SAID HOLDERS MAY OPT TO CONVERT EACH 25 OF DEBENTURES INTO 14285 SHARES OF BURNHAM PACIFIC COMMON STOCK THE CONVERSION PRICE IS EQUIVALENT TO 11714 OF THE FACE VALUE BASED ON THE STOCK'S FRIDAY CLOSING PRICE OF 2050 THE COMPANY SAID BURNHAM PACIFIC SAID IT EXPECTS MOST DEBENTURE HOLDERS TO CONVERT THEIR HOLDINGS TO COMMON STOCK WHICH WOULD INCREASE THE TOTAL SHARES OUTSTANDING BY 920000 TO 138 MILLION THE TRUST SAID THE CONVERSION WILL SAVE SLIGHTLY IN EXCESS OF ONE CENT PER SHARE PER YEAR 9304200119 930420 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY KEVIN G SALWEN COMPANIES SHELL OUT MORE TO GET EMPLOYEES TO WORK CONGRESS RECENTLY NEARLY TRIPLED WHAT A WORKER CAN GET TAXFREE TO PAY FOR MASS TRANSIT TO 60 A MONTH SO COMPANIES WHICH ALSO GET FINANCIAL INCENTIVES ARE SIGNING UP IN NEW YORK EMPLOYERS GAVE WORKERS AS MANY MASSTRANSIT VOUCHERS IN THE FIRST QUARTER AS THEY DID FOR ALL OF 1992 SAYS TRANSITCENTER WHICH RUNS THE LOCAL PROGRAM PRICE WATERHOUSE TESTS VOUCHERS FOR 350 EMPLOYEES OPPENHEIMER MANAGEMENT GIVES 200 WORKERS THREE 21 CHECKS A QUARTER OTHER COMPANIES ARE TRYING TO PUSH MASS TRANSIT TOO IN LOS ANGELES ATLANTIC RICHFIELD OFFERS 100 SUBSIDIES FOR PARKING OR BUS AND RAIL PASSES BUT THE MASSTRANSIT OPTION IS 60 TAXFREE THE PROGRAM HAS DOUBLED THE NUMBER OF WORKERS USING BUSES AND TRAINS WHILE SUBSIDIZING BUS PASSES FIRST INTERSTATE BANCORP FUNDS PARKING IN LOS ANGELES SAN FRANCISCO AND DALLAS OTHER CITIES CATCH ON TO MASSTRANSIT VOUCHERS INCLUDING CHICAGO DENVER PHILADELPHIA AND MINNEAPOLIS BUSINESSES AWAIT CLINTON'S HEALTHCARE PLAN WITH HOPE AND FEAR THE WHITE HOUSE TASK FORCE'S PROPOSAL TO OVERHAUL THE HEALTHCARE SYSTEM IS EXPECTED TO BE READY NEXT MONTH SOMETHING HAS TO BE DONE PARTICULARLY ABOUT RETIREE HEALTH BENEFITS SAYS LORNE GREENWOOD PRESIDENT OF DAVIS TOOL & ENGINEERING A DETROIT AUTO SUPPLIER WE'VE GOT TO DO SOMETHIN TO MAKE SURE THERE'S A BASIC SAFETY NET FOR ALL CITIZENS ADDS PETER LURIA OF RETAILER L LURIA & SON IN MIAMI LAKES FLA BUT SOME EXECUTIVES WORRY I THINK MY COST IS GOING TO BE STAGGERING SAYS ROBERT HARRIS HEAD OF THE ALLEN PARK INN IN HOUSTON IT MIGHT DRIVE MY BUSINESS TO THE BREAKING POINT OTHERS OPPOSE COVERAGE FOR THE UNINSURED IF YOU WANT HEALTHCARE COVERAGE ARGUES DAVID HUBER MANAGER OF TOMBSTONE COMPANY MONUMENT CENTER IN FERNDALE MICH GO OUT AND GET A JOB SO YOU CAN PAY FOR YOUR HEALTHCARE COVERAGE JOB SECURITY FOR MIDDLEAGED WORKERS MAY BE OVER THE HILL AMERICANS 35 TO 54 YEARS OLD ARE MORE VULNERABLE TO CUTS THAN IN THE PAST A STUDY BY HARVARD PROFESSOR JAMES MEDOFF SHOWS THE CUTS DON'T MEAN THESE PEOPLE WON'T WORK AGAIN BUT THEY ARE LIKELY TO FIND LOWERPAYING POSTS WITH FEWER BENEFITS IN THE TROUGH OF THE LAST TWO RECESSIONS THE PERCENTAGE OF 35 TO 54 YEAR OLDS WHO WERE UNEMPLOYED DUE TO PERMANENT JOB LOSS WAS MORE THAN 45 THAT COMPARES WITH ABOUT 35 OF THE UNEMPLOYED WHO LOST THEIR JOBS IN THE PREVIOUS THREE TROUGHS THE IMPLICATIONS ARE ROUGH PUTTING JOB SECURITY AT ITS MOST TENUOUS AT A TIME WHEN FINANCIAL OBLIGATIONS ARE LIKELY TO BE MOST PRESSING WITH MORTGAGE PAYMENTS COLLEGE COSTS AND RETIREMENT PLANNING PROF MEDOFF THEORIZES THAT AS COMPANIES SHED WORKERS IN A RECESSION THEY TYPICALLY OUST THE MORE HIGHLY PAID EMPLOYEES THE STUDY DOESN'T SAY WHY OLDER WORKERS DON'T FACE THE SAME FATE THOUGH THEY ARE PRESUMABLY PAID EVEN MORE ONE POSSIBILITY BUSINESSES FEAR AGEDISCRIMINATION SUITS NO JOB CUTS HERE THE DEPARTMENT OF VETERANS AFFAIRS EMERGES AS THE SOLE AGENCY EXEMPTED FROM CLINTON'S HIRING FREEZE ITS PAYROLL SECOND ONLY TO THE PENTAGON AND REPRESENTING ONE IN 10 FEDERAL EMPLOYEES WOULD RISE BY 2100 WORKERS TO 234200 NEXT YEAR MEANWHILE FEDERAL RESERVE DATA SHOW ONLY TWO OF THE BOARD'S TOP 34 STAFFERS ARE WOMEN OR MINORITIES A DOZEN FED STAFFERS WILL EARN 161800 THIS YEAR MORE THAN CABINETLEVEL SALARIES EEK THERE'S A MOUSE IN THE CORNER OFFICE THE PERCENTAGE OF EXECUTIVES WHO REGULARLY USE COMPUTERS NEARLY DOUBLED IN FOUR YEARS TO 81 FROM 42 IN 1989 SAYS A STUDY BY COMPUTERWORLD MAGAZINE AND ANDERSEN CONSULTING FEWER THAN HALF THINK THEY ARE GETTING THEIR MONEY'S WORTH FROM CORPORATE COMPUTER SYSTEMS TRANSFERRED EMPLOYEES WILL DEMAND MORE HELP FOR ELDERLY RELATIVES NEARLY ONE THIRD OF RELOCATION MANAGERS SURVEYED BY RUNZHEIMER INTERNATIONAL EXPECT EMPLOYEES TO SEEK HELP FINDING CARE FOR OR MOVING THEIR ELDERLY PARENTS ONLY 1 OF SUCH EMPLOYEES DO NOW GIRLS GET THEIR TURN AT THE OFFICE WHEN THEY TROOP TO WORK WITH THEIR MOTHERS APRIL 28 HAS BEEN DECLARED TAKE OUR DAUGHTERS TO WORK DAY BY THE MS FOUNDATION FOR WOMEN WHICH HOPES TO MAKE THIS AN ANNUAL EVENT GIRLS AGES NINE TO 15 WILL SPEND THE DAY LEARNING ABOUT CAREERS WE WANT TO MAKE SURE THAT EVERY YOUNG WOMAN IN THE COUNTRY THINKS THAT SHE CAN GROW UP AND BECOME PRESIDENT SAYS JANE DANOWITZ HEAD OF THE WOMEN'S CAMPAIGN FUND WHICH WILL HOST A CAPITOL HILL BREAKFAST FOR 150 DAUGHTERS OF CONGRESS MEMBERS AND STAFF THE HARBOR POLICE OF NEW ORLEANS WILL TAKE GIRLS ON PATROL A DOZEN MALLS NATIONWIDE WILL TEACH WINDOW DESIGN AND SHOWCASE FEMALE ROLE MODELS FROM RETAIL BUYERS TO SECURITY GUARDS NEW YORK'S MADISON SQUARE GARDEN AND NASA'S JOHNSON SPACE CENTER IN HOUSTON WILL HOLD PROGRAMS AQUEDUCT RACETRACK IN NEW YORK WILL TEACH YOUNG WOMEN TO GROOM AND FEED THOROUGHBREDS THE CHECKOFF CALLING ALL SUPERWOMEN WORKING MOTHER MAGAZINE'S MAY COVER PROMOTES TWO STORIES 29 CHICKEN RECIPES AND NEEDED NOW PENSION REFORM A MOCK MAGAZINE COVER BY MATT GROENING CREATOR OF THE SIMPSONS IS CALLED LONELY TYRANT THE MAGAZINE FOR ABUSIVE BOSSES WHOSE EMPLOYEES HATE THEIR GUTS ONE MAXIM A TENSE OFFICE IS A PRODUCTIVE OFFICE 9304200118 930420 WHO'S NEWS HARRIS CORP HARRIS CORP MELBOURNE FLA JOHN C GARRETT A FORMER EXECUTIVE AT SQUARE D CO WAS NAMED PRESIDENT OF THE COMPANY'S HARRIS SEMICONDUCTOR UNIT MR GARRETT 50 YEARS OLD SUCCEEDS PHILLIP W FARMER 54 WHO HAS BEEN ACTING PRESIDENT OF THE UNIT SINCE 1991 MR GARRETT WILL REPORT TO MR FARMER WHO RETAINS HIS EXECUTIVE VICE PRESIDENT POSITION AT THE PARENT COMPANY MR GARRETT MOST RECENTLY WAS SQUARE D'S EXECUTIVE VICE PRESIDENT INDUSTRIAL BUSINESSES IN ADDITION TO SEMICONDUCTORS THE PARENT COMPANY HAS INTERESTS IN OFFICE EQUIPMENT COMMUNICATIONS AND ELECTRONIC SYSTEMS 9304200117 930420 UNNEEDED WORKERS IN JAPAN ARE BORED AND VERY WELL PAID WINDOW SITTERS' PULL WEEDS AND CLIP NAILS TO KILL TIME BUT TRADITION IS DYING TOO BY YUMIKO ONO STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO IN HIS LAST 10 YEARS WITH MITSUBISHI CORP YASUHIKO USHIBA GOT LOTS OF EXPERIENCE TWIDDLING HIS THUMBS POSTED IN A PLANNING PROMOTION GROUP HE WAS GIVEN NO ASSIGNMENTS BY THE GIANT TRADING COMPANY WHEN HE TRIED PROPOSING PROJECTS THE PLANS WERE THROWN BACK IN HIS FACE SO MR USHIBA HUNG OUT AT THE ZOO AND TOOK IN TRIPLE FEATURES AT ADULT MOVIE THEATERS ALL THE WHILE HIS PAYCHECKS ABOUT 85000 A YEAR KEPT SAILING IN THE MESSAGE FROM MANAGEMENT WAS YOU CAN STAY HERE IF YOU WANT TO BUT WE'RE NOT GOING TO GIVE YOU ANY WORK TO DO SAYS THE 55YEAROLD MR USHIBA WHO EVENTUALLY QUIT TO START A CONSULTING COMPANY WHAT COULD BE WORSE FOR A PERSON THAN BEING IGNORED MR USHIBA HAD BEEN SHOWN THE WINDOW SEAT AS THE JAPANESE SAY OF UNNEEDED MIDDLEAGED WORKERS WHO HAVE BEEN SHUNTED ASIDE SITTING BY THE WINDOW IS A FORM OF WELFARE UNDER JAPAN'S LIFETIMEEMPLOYMENT SYSTEM WHICH OFTEN LEAVES SENIOR EMPLOYEES ON THE PAYROLL WITH LITTLE OR NOTHING TO DO WITH THE AVERAGE AGE OF JAPAN'S POPULATION RISING AND THE ECONOMY STILL IN THE TANK THERE IS NOW MORE WINDOW SITTING THAN EVER FUJI BANK'S RESEARCH ARM FIGURES JAPANESE OFFICES AND FACTORIES ARE CARRYING THE EQUIVALENT OF ONE MILLION REDUNDANT EMPLOYEES SIGN OF THE TIMES ONE SECRETARY RECENTLY WROTE TO A MAGAZINE TO COMPLAIN ABOUT AN OFFICE COLLEAGUE WHO KILLS TIME BY CLIPPING HIS TOENAILS TRADITIONALLY COMPANIES DOLE OUT WINDOW SEATS AS A WAY OF SUPPORTING EMPLOYEES UNTIL THEY RETIRE TYPICALLY AT AGE 60 GETTING BRANDED A WINDOW SITTER IS A BIG LOSS OF FACE BUT A DEADEND JOB BEATS THE BREAD LINE THESE DAYS THOUGH MORE AND MORE STRAPPED BUSINESSES ARE USING MINDNUMBINGLY DULL JOBS TO HUMILIATE AGING WORKERS INTO QUITTING A LOT OF WINDOW SITTERS ARE THEREFORE HARD AT WORK CAMOUFLAGING THEIR IDLENESS I'M THE ODDJOB MAN SHRUGS A FIFTYISH TOKYO OFFICE WORKER AS HE BOARDS A TRAIN TOTING A BAG FULL OF PRIZES HE BOUGHT FOR THE OFFICE BOWLING TOURNAMENT AT A TEXTILE COMPANY ONE WINDOW SITTER IN HIS 40S SPENDS HIS DAYS WRITING SIGNS URGING COWORKERS TO SHUT DOORS PROPERLY TAKEO FUKUDA A 54YEAROLD EMPLOYEE OF A CONSTRUCTION COMPANY SAYS EACH WEEK HE PUTS IN A HALF DAY AT A TOKYO PUBLIC LIBRARY TO ANALYZE PUBLIC INFORMATION SOMETIMES HE WRITES REPORTS ON CURRENT TRENDS ON THE CHANCE A COLLEAGUE MIGHT FIND THEM USEFUL BY 3 PM ON A RECENT CHILLY AFTERNOON HE KNOWS THE DAY'S NEWSPAPER HEADLINES BY HEART YOU HAVE TO CREATE WORK ON YOUR OWN MR FUKUDA CHIRPS DURING A 40MINUTE CHAT OUTSIDE THE LIBRARY IN A BURST OF CANDOR HE ADMITS HE IS A WINDOW SITTER BUT INSISTS HE IS MORE INDUSTRIOUS THAN OTHERS OF HIS KIND LOOK AT ALL THOSE PEOPLE SLEEPING IN THE LIBRARY HE SAYS PEERING INTO THE WINDOW WHAT A WASTE OF TIME MOST JAPANESE CONSIDER THE WINDOW SEAT A SACRED ENTITLEMENT A REWARD FOR YEARS OF LOYALTY A HAVEN DURING HARD TIMES EISAKU FUKAMACHI A 46YEAROLD EMPLOYEE OF A BIG TEXTILE MANUFACTURER REMEMBERS THE DAY HIS FACTORY TEMPORARILY SHUT DOWN DURING A RECESSION 20 YEARS AGO HE JUSTIFIED HIS SALARY BY PICKING WEEDS AROUND THE PLANT WHEN FINISHED HE WOULD PRETEND TO PICK SOME MORE SIPPING A BEER OVER LUNCH MR FUKAMACHI ADMITS THINGS ARE SO SLOW THESE DAYS THAT HE SPENDS MANY AN AFTERNOON DRINKING COFFEE WITH CLIENTS BUT THERE WILL BE WORK WHEN THE ECONOMY TURNS AROUND HE SAYS THAT'S WHAT LIFETIME EMPLOYMENT IS ALL ABOUT SOME WINDOW SITTERS LET THE INACTIVITY GET TO THEM MR USHIBA THE FORMER MITSUBISHI MAN RECALLS ONE DEPRESSED COLLEAGUE WHO HAD TO BRACE HIMSELF FOR EACH DAY BY BELTING BACK SIX CUPS OF COFFEE THREE HOT THREE ICED YOU START GOING STRANGE WHEN YOU'RE FARMED OUT SAYS MR USHIBA AS TESTIMONY TO HIS YEARS IN MITSUBISHI'S CONFINEMENT ROOM AS HE CALLS HIS OLD GROUP OF 10 WINDOW SITTERS HE BUILT A GATE OUTSIDE HIS HOUSE WITH LATTICE WORK RESEMBLING A CAGE THESE DAYS THOUGH HE IS BUSY AS A BEE BARNSTORMING JAPAN TO LECTURE BEFORE DESPAIRING CORPORATE ALSORANS AND PLUG HIS HOTSELLING BOOK THE CHALLENGE OF THE BORED WINDOW SITTER SITTING BY THE WINDOW MAY BE DEMEANING BUT FADING CORPORATE SOLDIERS DON'T SEE MUCH ALTERNATIVE JAPAN'S JOBLESS BENEFITS ARE PEANUTS THE COUNTRY HAS NO TRADITION OF JOBHOPPING AND RECRUITERS PREFER TO HIRE FRESH COLLEGE GRADUATES RATHER THAN EXPERIENCED SALARYMEN COMPANIES ARE IN A BIND TOO BECAUSE JAPANESE LAW MAKES IT HARD TO SACK PEOPLE WE USED TO THINK THAT IF YOU CAN'T STICK IT OUT IN ONE COMPANY YOU'RE NO USE IN ANOTHER SAYS SABURO KITAMURA A 56YEAROLD EMPLOYEE OF ISUZU MOTORS LTD MR KITAMURA ADMITS HE FELT WRETCHED AS HE SLID DOWN THE CORPORATE LADDER AND WAS ASSIGNED TO HEAD A DEPARTMENT WITH NO ONE WORKING UNDER HIM A SURE SIGN OF A WINDOW SEAT SECRETARIES WHISPERED BEHIND HIS BACK ASKING WHAT HIS JOB WAS WHAT A COMEDOWN FROM FIVE YEARS AGO WHEN HE COMMANDED THE 40MEMBER OVERSEAS PARTS DIVISION MR KITAMURA SAYS HE HAS SUCKED IN HIS GUT AND FOUND HIMSELF A NEW MISSION SUGGESTING WAYS TO CHANGE ISUZU'S CORPORATE CULTURE ONCE YOU FIND YOUR OWN NICHE YOU JUSTIFY YOUR EXISTENCE IN THE COMPANY HE SAYS PROUDLY I AM AFTER ALL A COMPANY MAN THOSE LEGIONS OF LOYAL COMPANY MEN HELPED TO MAKE JAPANESE COMPANIES THE COMPETITORS THEY ARE TODAY JAPAN'S YOUNG SALARYMEN SACRIFICED THEIR PRIVATE LIVES AND PUT IN LONG HOURS FOR THE COMPANY BECAUSE THEY KNEW THE FIRM WOULD TAKE CARE OF THEM LATER EVEN IF THEY NEVER ROSE TO THE TOP TODAY IT IS A DIFFERENT STORY PROVIDING ALL THOSE WINDOW SEATS COSTS BILLIONS OF DOLLARS A YEAR AND IS SOMETHING MANY COMPANIES CAN NO LONGER AFFORD THE RETURNS EARNED FROM LOYALTY AREN'T WHAT COMPANIES NEED ANYMORE SAYS IWAO NAKATANI A PROFESSOR OF MANAGEMENT AT HITOTSUBASHI UNIVERSITY IN TOKYO THEY NEED PEOPLE TO CREATE IDEAS SEEING THE WRITING ON THE WALL A NUMBER OF COMPANIES ARE GETTING STINGY WITH THE SINECURES SUSUMU IKEGAMI 54 SAYS HIS MIND WENT BLANK WHEN HIS TEXTILE COMPANY TOLD HIM TO LOOK FOR A JOB ELSEWHERE I THOUGHT AT LEAST I'D GET THE WINDOW SEAT HE SAYS THIS MEANT I WASN'T NEEDED AT ALL BY THE COMPANY MR IKEGAMI WHO WAS A SENIOR MANAGER AT A COMPUTERSOFTWARE UNIT NOW WORKS AT AN ENGLISHLANGUAGE SCHOOL IN TOKYO MR IKEGAMI SAYS HIS WIFE BURST INTO TEARS WHEN SHE HEARD HE GOT THE AX SHE SAID IT WOULD MAKE A BIG DIFFERENCE AT OUR DAUGHTER'S WEDDING HE RECALLS BECAUSE HE WOULDN'T BE ABLE TO BILL HIMSELF AS AN EMPLOYEE OF A BLUECHIP COMPANY SITTING BY THE WINDOW AT A BIG COMPANY CARRIES MORE PRESTIGE THAN HAVING A REAL JOB AT A SMALLER OUTFIT SOME BUSINESSES ARE TURNING THE WINDOW SEAT INTO A MODERNDAY DUCKING STOOL IN HOPES THE OCCUPANT WILL QUIT ONE MANAGER WAS RECENTLY ORDERED TO WRITE COMPOSITIONS DETAILING HIS REFLECTIONS ON THE DAY'S EVENTS REPORTS KENJI TOKUZUMI A LABOR LAWYER THIS WINTER MR TOKUZUMI SAYS A COMPUTERSOFTWARE MAKER EXILED THREE MIDDLEAGED EMPLOYEES TO AN OFFICE IN THE BOONDOCKS ANOTHER TYPICAL WINDOW JOB THEIR ASSIGNMENT CHOPPING WOOD SO MAYBE IT ISN'T SURPRISING THAT A SMALL BUT GROWING NUMBER OF JAPANESE SAY THEY HAVE HAD IT WITH LIFETIME EMPLOYMENT YASUHIRO ITAGAKI A 53YEAROLD ENGINEER HAS GIVEN NOTICE THAT HE WILL RETIRE EARLY FROM HIS ELECTRONICS COMPANY BEFORE HE GETS STUCK BY THE WINDOW HE SAYS HE KNOWS HOW GRIM THINGS CAN GET FOR SENIOR WORKERS IT'S MISERABLE CLINGING TO A POSITION WHEN YOU'VE ALREADY BEEN TOLD THERE ARE TOO MANY PEOPLE THERE SAYS MR ITAGAKI WHAT'S THE POINT OF GROWING OLDER AND BEING CALLED A WINDOW SITTER 9304200116 930420 LETTERS TO THE EDITOR LISTEN REAGAN HAD PLENTY TO SAY I WAS QUITE SURPRISED BY JUSTIN KAPLAN'S VITRIOLIC REVIEW OF THE WORDS AND PHRASES OF RONALD REAGAN IN HIS MARCH 25 COUNTERPOINT REAGAN BOOSTERS GO AHEAD AND MAKE MY DAY OPED PAGE MR KAPLAN THE GENERAL EDITOR OF BARTLETT'S FAMILIAR QUOTATIONS EXPLAINS WHY HE PUT SO FEW OF MR REAGAN'S QUOTATIONS IN THE LATEST EDITION OF BARTLETT'S I NAIVELY THOUGHT THAT PULITZER PRIZEWINNING AUTHORS ARE SUPPOSED TO CONDUCT EXTENSIVE RESEARCH BEFORE VENTING THEIR OPINIONS WELL I GUESS I'LL HAVE TO TAKE UP MR KAPLAN'S CHALLENGE AS A REAGAN BOOSTER AND MAKE HIS DAY MR KAPLAN OPINES THAT MORE IN HIS MR REAGAN'S CASE WOULD HAVE AMOUNTED TO LESS IF ONE WERE TO APPLY STANDARDS OF ORIGINALITY AND SUBSTANCE THAT HE MR REAGAN COULD NOT BE DESCRIBED AS A MEMORABLE PHRASE MAKER OR ORIGINAL THINKER AND THAT MUCH OF WHAT HE SAID WAS SIMPLY NOT MEMORABLE WELL HERE THEY GO AGAIN OOPS SORRY MR REAGAN IT WOULD APPEAR THAT WE HAVE ANOTHER HISTORICAL REVISIONIST AT THE PODIUM I WOULD DIRECT MR KAPLAN TO READ THE APPROPRIATELY TITLED THE TRIUMPH OF THE AMERICAN SPIRIT WITH INTRODUCTORY ESSAYS BY SENS JOHN P EAST AND ORRIN HATCH AND REP PHILIP M CRANE THOUGH I DOUBT MR KAPLAN WOULD SUGGEST THAT THESE GENTLEMEN ARE MEMORABLE AS A REFRESHER YOU MAY RECALL SOME OF THESE MORE MEMORABLE AND CERTAINLY RELEVANT IF NOT SOONTOBE PROPHETIC WORDS OF RONALD REAGAN AT HIS FIRST INAUGURATION HE TOLD US THAT THOSE WHO DO WORK ARE DENIED A FAIR RETURN FOR THEIR LABOR BY A TAX SYSTEM WHICH PENALIZES SUCCESSFUL ACHIEVEMENT AND KEEPS US FROM MAINTAINING FULL PRODUCTIVITY THAT GOVERNMENT IS NOT THE SOLUTION TO OUR PROBLEM GOVERNMENT IS THE PROBLEM SOUNDS LIKE MEMORABLE SUBSTANTIVE WORDS TO ME I DON'T THINK AS MR KAPLAN WOULD SUGGEST THAT PRESIDENT REAGAN WAS PROMOTING COMMERCIAL PRODUCTS BUT THEN OF COURSE MANY VIEW GOVERNMENT AS A PANACEA A MAGICAL ELIXIR A COMMERCIAL PRODUCT TO BE DOLED OUT FOR SOCIETY'S ILLS IN HIS TRIBUTE TO THE UNKNOWN SOLDIER OF THE VIETNAM WAR ARLINGTON NATIONAL CEMETERY MAY 28 1984 PRESIDENT REAGAN SAID WE DO KNOW THOUGH WHY HE DIED HE SAW THE HORRORS OF WAR BUT BRAVELY FACED THEM CERTAIN HIS OWN CAUSE AND HIS COUNTRY'S CAUSE WAS A NOBLE ONE THAT HE WAS FIGHTING FOR HUMAN DIGNITY FOR FREE MEN EVERYWHERE AND WHO CAN FORGET THE JUNE 1984 SPEECH TO THE RANGERS ON THE 40TH ANNIVERSARY OF THE NORMANDY INVASION THESE WERE THE MEN WHO SCALED THE CLIFFS ON THE NORTHERN SHORE OF FRANCE ONLY TO BE MET BY ENEMY FIRE AT THE TOP PRESIDENT REAGAN ELOQUENTLY AND WITH STRENGTH AND SENSITIVITY PAINTED A REMINDER OF WHAT THESE BRAVE MEN ENDURED FOR THE SAKE OF LIBERTY IN TRIBUTE TO THEIR SPIRIT HE TOLD THEM YOU KNEW THAT SOME THINGS ARE WORTH DYING FOR AND DEMOCRACY IS WORTH DYING FOR BECAUSE IT'S THE MOST DEEPLY HONORABLE FORM OF GOVERNMENT EVER DEVISED BY MAN DOESN'T SOUND LIKE AN INADVERTENT COMIC OR SEMIVACANT CHARACTER MR REAGAN IN HIS SPEECH AT THE ECUMENICAL PRAYER BREAKFAST IN DALLAS AUG 23 1984 STATED IF WE EVER FORGET THAT WE'RE ONE NATION UNDER GOD THEN WE WILL BE A NATION GONE UNDER TO THE NATIONAL RELIGIOUS BROADCASTERS FEBRUARY 1982 HE STATED THE FIRST AMENDMENT WAS NOT WRITTEN TO PROTECT THE PEOPLE FROM RELIGIOUS VALUES IT WAS WRITTEN TO PROTECT THOSE VALUES FROM GOVERNMENT TYRANNY AND WHAT ABOUT THE REAGAN HUMOR WHEN SPEAKING AT THE HERITAGE FOUNDATION DINNER OCT 3 1983 HE STATED WHERE ARE THOSE DEMOCRATIC CANDIDATES WITH THEIR GRANDIOSE SOLUTIONS NOW THAT WE NEED THEM THE AMERICA'S CUP RACE FOR EXAMPLE NOW THERE WAS A PROBLEM THAT COULD HAVE BEEN SOLVED WITH MORE MONEY AND A LOT OF WIND OF COURSE SHOULD MR KAPLAN SINCERELY WANT TO CAPTURE THE REAGAN SPIRIT THEN IT WOULD BE FOUND IN HIS FIRST STATE OF THE UNION ADDRESS JAN 26 1982 WHEN HE SAID RAISING TAXES WON'T BALANCE THE BUDGET IT WILL ENCOURAGE MORE GOVERNMENT SPENDING AND LESS PRIVATE INVESTMENT RAISING TAXES WILL SLOW ECONOMIC GROWTH REDUCE PRODUCTION AND DESTROY FUTURE JOBS MAKING IT MORE DIFFICULT FOR THOSE WITHOUT JOBS TO FIND THEM AND MORE LIKELY THAT THOSE WHO NOW HAVE JOBS COULD LOSE THEM SO I WILL NOT ASK YOU TO TRY TO BALANCE THE BUDGET ON THE BACKS OF THE AMERICAN TAXPAYERS WE CAN ONLY HOPE THAT THESE WISE ONTHEMARK WORDS ARE HEARD AND ECHOED FAR BACK IN THE SHADOWS OF THE HALLS OF CONGRESS WHERE SOME REPRESENTATIVES ARE SAYING HOW TRUE IT IS THE HALLMARK OF VALIDITY FOR ANY SERIOUS REFERENCE WORK IS THE SCHOLARLY DETACHMENT MAINTAINED BY ITS WRITERS MR KAPLAN HAS CLEARLY CHOSEN NOT TO SUSTAIN THIS DETACHMENT DEMONSTRATED BY HIS OBVIOUS CONTEMPT FOR FORMER PRESIDENT REAGAN HIS DERISIVE COMMENTS THAT MR REAGAN WAS AN ACTOR MASQUERADING AS A LEADER AND THAT MR REAGAN'S SPEECHES HAD A SEMIVACANT CHARACTER ARE TYPICAL OF THE REVISIONISM SO PERVASIVE AMONG THE LIBERAL INTELLECTUAL ELITE TO THOSE OF US WHO WERE AWAKE DURING THE 1980S MR REAGAN WAS A BRILLIANT NEGOTIATOR A PUBLIC SPEAKER WHO TOUCHED HEARTS AND EVOKED DREAMS AS WELL AS A LEADER WHO WAS NOT AFRAID TO LEAD JACK KEMP 1984 REPUBLICAN CONVENTION DON'T BOTHER TO LOOK IT UP BECAUSE YOU WON'T FIND THAT IN BARTLETT'S EITHER IT WAS MR REAGAN NOT SPEECH WRITER PEGGY NOONAN WHO WAS ELECTED IN TWO LANDSLIDE VICTORIES AND FOR THAT THE INTELLECTUALS WILL NEVER FORGIVE US MR KAPLAN AND OTHERS OF HIS ILK WILL CONTINUE TO VILIFY THE 1980S UNDER THE GUISE OF SCHOLARLY RESEARCH AND GET AWAY WITH IT BUT THOSE OF US WHO LIVED IT SHALL NEVER FORGET THAT THE AUTHOR OF THAT DYNAMIC DECADE WAS UNDENIABLY RONALD REAGAN 9304200115 930420 LETTERS TO THE EDITOR DRUG MAKERS' STANCE ON VOLUNTARY CONTROLS IN RESPONSE TO YOUR MARCH 10 ARTICLE DRUG EXECUTIVES YIELD GROUND TO WHITE HOUSE IT IS IMPORTANT TO NOTE THAT THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION PMA HAS NOT AS YOU REPORTED AGREED FOR THE FIRST TIME TO GO ALONG WITH PROPOSED LAWS THAT WOULD MONITOR AND ENFORCE VOLUNTARY CONTROLS WHAT THE PMA INSTEAD HAS DONE IS ANNOUNCE THAT IT IS ASKING THE JUSTICE DEPARTMENT TO ISSUE A BUSINESS REVIEW LETTER THAT WOULD EXEMPT COMPANIES FROM ANTITRUST LAW PROSECUTIONS SO THEY CAN DISCUSS VOLUNTARY PRICE RESTRAINTS AND APPROPRIATE VOLUNTARY ENFORCEMENT MECHANISMS WE WANT TO WORK WITH THE CLINTON ADMINISTRATION AND CONGRESS ON IMPROVING ACCESS TO MEDICINES BUT HAVE NOT ACCEPTED OR ENDORSED ANY PROPOSED LAWS ON PRICE CONTROLS 9304200114 930420 WHO'S NEWS INSILCO CORP INSILCO CORP MIDLAND TEXAS ROBERT L SMIALEK WAS NAMED PRESIDENT CHIEF EXECUTIVE OFFICER AND A DIRECTOR OF THIS HOLDING COMPANY WHICH HAS INTERESTS IN THE AUTOMOTIVE ELECTRONICS DEFENSE AND CONSUMER PRODUCTS INDUSTRIES HE SUCCEEDS JOEL L REED 42 YEARS OLD WHO ANNOUNCED HIS RESIGNATION EARLIER THIS MONTH AFTER INSILCO EMERGED FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS AND AGREED TO STAY ON AS CHIEF OPERATING OFFICER UNTIL A NEW CHIEF EXECUTIVE WAS NAMED THE COMPANY SAID HE HAS RESIGNED TO PURSUE OTHER INTERESTS MR SMIALEK 49 WAS MOST RECENTLY PRESIDENT AND CHIEF OPERATING OFFICER OF THE TEMPERATURE AND APPLIANCE CONTROLS GROUP OF SIEBE PLC 9304200113 930420 LEISURE & ARTS TOP TEN SINGLES / ALBUMS CONSTRUCTED BY BILLBOARD MAGAZINE FROM DATA PROVIDED BY BROADCAST DATA SYSTEMS AND SOUNDSCAN INC AND BASED ON A NATIONAL SAMPLE OF RETAIL REPORTS AND RADIO PLAY LISTS 9304200111 930420 JAPANESE DISTILLER TO EXPAND TOKYO SUNTORY LTD A MAJOR DISTILLER IN JAPAN SAID IT WILL START SELLING WHISKEY IN SOUTH KOREA AT THE END OF THIS MONTH A SPOKESMAN SAID SUNTORY FORMED A BUSINESS TIEUP WITH SEOUL KOREABASED DONGWHA LIQUOR CO A WHOLESALER WHICH WILL SERVE AS SUNTORY'S SALES AGENT IN THAT COUNTRY THROUGH THE USE OF DONGWHA LIQUOR'S SALES NETWORK SUNTORY WILL SELL ITS SQUARE BRAND OF WHISKEY IN ABOUT 3650 RETAIL STORES 9304200110 930420 LAW LEGAL BEAT JONES DAY WILL PAY 51 MILLION TO SETTLE LINCOLN SAVINGS CASE BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL JONES DAY REAVIS & POGUE AGREED TO PAY THRIFT REGULATORS A RECORD 51 MILLION TO SETTLE CLAIMS THAT THE LAW FIRM AIDED IN THE LOOTING OF LINCOLN SAVINGS & LOAN ASSOCIATION ENDING A COSTLY TWOYEAR LEGAL BATTLE THE SETTLEMENT ANNOUNCED YESTERDAY BY JONES DAY AND THE RESOLUTION TRUST CORP IS THE BIGGEST THAT THRIFT REGULATORS HAVE REACHED IN PURSUING CLAIMS AGAINST LAW FIRMS THAT WORKED FOR TROUBLED SAVINGS AND LOANS THE CLEVELAND FIRM'S CAPITULATION AFTER LONG MAINTAINING THAT IT WANTED ITS DAY IN COURT IS EXPECTED TO GIVE REGULATORS EVEN MORE CLOUT IN THE CASES CURRENTLY PENDING AGAINST 40 OTHER LAW FIRMS ACCUSED OF S&L WRONGDOING THE SETTLEMENT IS 10 MILLION GREATER THAN THE 41 MILLION THAT NEW YORK LAW FIRM KAYE SCHOLER FIERMAN HAYS & HANDLER AGREED TO PAY LAST YEAR TO SETTLE ITS DISPUTE WITH REGULATORS OVER ITS WORK FOR LINCOLN JONES DAY THE NATION'S SECONDLARGEST LAW FIRM WITH MORE THAN 1000 LAWYERS STILL MAINTAINS THAT IT DID NOTHING WRONG IN ITS WORK FOR LINCOLN IN 1986 BUT LAWYERS FOR THE FIRM SAID THAT IN THE END JONES DAY FEARED THAT AT TRIAL IT WOULDN'T BE ABLE TO SHAKE THE TAINT OF CHARLES KEATING WHOSE AMERICAN CONTINENTAL CORP OWNED LINCOLN MR KEATING CURRENTLY IS SERVING A 10YEAR SENTENCE ON CRIMINAL FRAUD CHARGES STEMMING FROM THE COLLAPSE OF LINCOLN KEATING'S NAME SO INFECTED THESE PROCEEDINGS THAT THE OUTCOME OF THE TRIAL WAS VERY HARD TO PREDICT WITH ANY DEGREE OF ASSURANCE THE LAW FIRM'S MANAGING PARTNER PATRICK MCCARTAN SAID IN A STATEMENT THE RTC WAS SEEKING MORE THAN 200 MILLION IN DAMAGES IN THE SUIT AGAINST JONES DAY WHICH WAS SET FOR TRIAL THIS WEEK IN FEDERAL COURT IN TUCSON ARIZ OF THE 51 MILLION SETTLEMENT 49 MILLION IS SPECIFICALLY FOR THE LINCOLN CLAIMS THE RTC SAID AS PART OF THE SETTLEMENT THE RTC ALSO AGREED TO DROP CLAIMS IT WAS PREPARING TO PURSUE AGAINST JONES DAY FOR ITS WORK FOR WESTERN SAVINGS & LOAN ANOTHER FAILED THRIFT BASED IN PHOENIX AND THE AGREEMENT SETTLES ANY FUTURE CLAIMS THAT MAY ARISE OUT OF WORK JONES DAY DID FOR OTHER THRIFTS THAT ALREADY HAVE FAILED SIGNIFICANT PROTECTION FOR JONES DAY WHICH REPRESENTED ABOUT 200 THRIFTS ALTOGETHER NOTHING IN THE SETTLEMENT PREVENTS THE FIRM FROM CONTINUING ITS THRIFT PRACTICE THE RTC SPOKESWOMAN SAID THAT 1 MILLION OF THE SETTLEMENT IS FOR THE POTENTIAL WESTERN CLAIMS AND THE REMAINING 1 MILLION IS FOR POSSIBLE CLAIMS FROM OTHER THRIFTS THAT HAVE FAILED THE SETTLEMENT DOESN'T APPLY TO THRIFTS THAT MAY FAIL IN THE FUTURE HOWEVER AN RTC SPOKESWOMAN SAID JOHN STRAUCH A PARTNER AT JONES DAY SAID THE GLOBAL ASPECT OF THE SETTLEMENT WAS A VERY MEANINGFUL AND ESSENTIAL PART OF THE SETTLEMENT THIS MADE THE SETTLEMENT DOABLE HE ADDED WE WERE VERY HEAVILY INVOLVED IN THE THRIFT FIELD MR STRAUCH SAID THAT SUBSTANTIALLY MORE THAN HALF OF THE SETTLEMENT WILL BE COVERED BY THE LAW FIRM'S INSURANCE AND THAT THE PARTNERSHIP WILL BE ABLE TO PAY THE REMAINDER WITHOUT SEEKING ADDITIONAL PAYMENTS FROM PARTNERS' PERSONAL ASSETS THE RTC SAID THAT 315 MILLION OF THE SETTLEMENT WILL BE PAID AS SOON AS THE AGREEMENT IS APPROVED BY THE FEDERAL JUDGE OVERSEEING THE CASE THE REMAINING 195 MILLION WILL BE PAID OVER SIX YEARS THE RTC'S SUIT AGAINST JONES DAY ALLEGED THAT THE LAW FIRM HELPED MR KEATING AND OTHER LINCOLN EXECUTIVES DEFRAUD THE S&L BY COVERING UP UNSAFE AND UNSOUND BUSINESS PRACTICES JONES DAY WAS BROUGHT IN TO REVIEW LINCOLN'S TROUBLED LOAN FILES IN ANTICIPATION OF A REGULATORY REVIEW AND THE LAW FIRM SAYS IT ACTED PROPERLY BY REPORTING PROBLEMS THAT IT FOUND TO LINCOLN OFFICIALS THE RTC HOWEVER MAINTAINS THAT JONES DAY TURNED A BLIND EYE WHEN THE EXECUTIVES FAILED TO ACT ON THE LAW FIRM'S RECOMMENDATIONS IN ITS SUIT THE RTC SAID JONES DAY SHOULD HAVE EITHER QUIT OR TAKEN ITS FINDINGS HIGHER UP THE CHAIN OF COMMAND ALL THE WAY TO THE THRIFT'S OUTSIDE DIRECTORS IF NECESSARY IT IS EXTREMELY IMPORTANT FOR LAW FIRMS TO REMEMBER WHO THEIR CLIENT IS SAID RICHARD ABOUSSIE ACTING GENERAL COUNSEL FOR THE RTC EXPRESSING A POLICY THAT HAS STIRRED CONTROVERSY AMONG MANY LAWYERS AND ETHICS SPECIALISTS HE SAID THAT LAWYERS HAVE TO BE SURE THAT THEY ARE KEEPING THEIR CLIENT ULTIMATELY THE BOARD OF DIRECTORS OF THE CLIENT IF NECESSARY INFORMED OF ACTIONS THEY ARE BEING ASKED TO TAKE BY INDIVIDUALS WHOSE INTERESTS MIGHT BE IN CONFLICT WITH THE INTERESTS OF THE CLIENT CHARLES WOLFRAM A CORNELL LAW SCHOOL ETHICS PROFESSOR WHO HAS DONE SOME WORK FOR JONES DAY IN OTHER CASES SAID THE DEBATE WILL CONTINUE HOT AND HEAVY OVER THE OBLIGATIONS OF LAWYERS AT THRIFTS HE SAID THAT IF JONES DAY BELIEVED IN GOOD FAITH THAT THE GENERAL COUNSEL AT LINCOLN WOULD COMPLY WITH THE LAW FIRM'S RECOMMENDATIONS THEN JONES DAY ACTED PROPERLY THE IDEA THAT THEY ARE OBLIGATED TO GO UP THE LADDER ALL THE WAY TO THE CORPORATE BOARD TO ENSURE COMPLIANCE IS AN UTTERLY NOVEL THEORY PROF WOLFRAM SAID THE AGREEMENT ALSO SETTLES ADMINISTRATIVE CHARGES AGAINST WILLIAM SCHILLING A JONES DAY ATTORNEY WHO WORKED ON THE LINCOLN MATTER MR SCHILLING FORMERLY DIRECTOR OF THE FEDERAL HOME LOAN BANK BOARD'S OFFICE OF EXAMINATIONS AND SUPERVISION AGREED NOT TO REPRESENT THRIFT CLIENTS OR TO HOLD ANY POSITION IN THE BANKING OR THRIFT INDUSTRY MR SCHILLING'S ATTORNEY HAMILTON P FISH III OF SUTHERLAND ASBILL & BRENNAN SAID HIS CLIENT WHO IS OF COUNSEL AT JONES DAY AGREED TO THE BAN ONLY BECAUSE HIS REFUSAL WOULD HAVE JEOPARDIZED THE OVERALL SETTLEMENT PARTNERS IN SWISS LAW FIRMS EARN THE MOST MONEY IN EUROPE WITH MIDLEVEL AND SENIOR PARTNERS AVERAGING 490000 AND LOWERLEVEL PARTNERS AROUND 235000 ACCORDING TO A SURVEY BY THE INTERNATIONAL FINANCIAL LAW REVIEW THE SURVEY BASED ON INTERVIEWS WITH LAWYERS AND LEGAL RECRUITMENT SPECIALISTS BY THE LONDONBASED PUBLICATION SAYS UPPERRANGE PARTNERS IN GERMANY ARE SECOND AT 465000 FOLLOWED BY BRITAIN AT 440000 BELGIUM AT 430000 FRANCE AT 400000 AND LUXEMBOURG AND ITALY EACH AT 380000 FOR THE MORE JUNIOR TIER OF PARTNERS FRANCE WAS SECOND AT 225000 FOLLOWED BY BELGIUM AND GERMANY AT 205000 AND BRITAIN AT 200000 IN COMPARISON AVERAGE PERPARTNER EARNINGS AMONG THE 100 HIGHEST GROSSING LAW FIRMS IN THE US WAS ESTIMATED AT 400000 IN THE AMERICAN LAWYER MAGAZINE'S MOST RECENT ANNUAL SURVEY WHO'S NEWS CHERYL A TRITT CHIEF OF THE FEDERAL COMMUNICATIONS COMMISSION'S COMMON CARRIER BUREAU WILL JOIN MORRISON & FOERSTER AS A PARTNER IN ITS WASHINGTON OFFICE MS TRITT JOINED THE FCC IN 1989 AS TELECOMMUNICATIONS ADVISER TO FORMER FCC CHAIRMAN ALFRED SIKES AND WAS APPOINTED CHIEF OF THE COMMON CARRIER BUREAU LAST YEAR BEFORE JOINING THE FCC SHE HELD VARIOUS JOBS WITH GTE CORP 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 9304200108 930420 LEISURE & ARTS BOOKSHELF CITY OF BLIGHT BY RON CHERNOW THE PARIS ON DISPLAY IN FIREWORKS AT DUSK PARIS IN THE THIRTIES LITTLE BROWN 351 PAGES 2495 ISN'T THE STORYBOOK METROPOLIS OF LOVERS STROLLING BY THE SEINE OR PHILOSOPHERS CHATTING IN LEFT BANK CAFES AS OLIVIER BERNIER OBSERVES IN HIS WITTY MORDANT POTPOURRI OF POLITICAL AND CULTURAL LIFE PARISIAN GAIETY IN THE 1930S WAS LESS CHARMING INSOUCIANCE THAN A SHABBY FLIGHT FROM RESPONSIBILITY BY A DECADENT ELITE WHILE ELSEWHERE THE GREAT DEPRESSION SPAWNED POLITICAL GIANTS OF HEROIC OR SINISTER REPUTE THE FRENCH HAD TO ENDURE THE PETTY INTRIGUES OF A PARADE OF POLITICAL MIDGETS WITH A SAINT'S PATIENCE MR BERNIER GUIDES US THROUGH THE MAZE OF COALITION GOVERNMENTS THAT FEATURED PERMUTATIONS OF SUCH SMALLMINDED HYPOCRITES AS LAVAL HERRIOT TARDIEU AND BONNET PRESCRIBING THE SAME LETHAL DEFLATIONARY MEDICINE TO CURE THE DEPRESSION ALL THE INTRIGUES CREATED A BORED ALIENATED ELECTORATE BY BREEDING DISDAIN FOR DEMOCRATIC GOVERNMENT THEY ALSO FED A RESURGENT MONARCHISM COLLECTIVIST FANTASIES ON THE LEFT AND PROTOFASCIST SYMPATHIES ON THE FAR RIGHT THE EXTRAORDINARY FRAGILITY OF FRENCH DEMOCRACY WAS REVEALED BY THE STAVISKY AFFAIR A CONFIDENCE MAN WHO PLUNDERED THE STATE TO SUBSIDIZE HIS LAVISH TASTES AND BEAUTIFUL WIFE ALEXANDRE STAVISKY SUBORNED SO MANY POLITICIANS THAT HIS EXPOSURE IN EARLY 1934 PROMPTED A BLOODY INSURRECTION IN THE PLACE DE LA CONCORDE THOSE SURPRISED BY WIDESPREAD FRENCH COLLABORATION WITH THE NAZIS IN WARTIME PARIS WILL FIND ALL THE ANTECEDENTS HERE IN THE '30S FRANCE REELED TOWARD A NERVOUS BREAKDOWN THE SPECTER OF STALIN AND HITLER POLARIZED FRENCH POLITICS PRODUCING A PARANOID ATMOSPHERE THAT REMOVED ANY PRETENSE OF CIVILITY AND SANCTIONED EXTREMISM IN THE PAGES OF THE NOTORIOUS L'ACTION FRANCAISE LEON DAUDET OPENLY DEMANDED THE MURDER OF SOCIALIST LEADER LEON BLUM REVILING JEWS AS A PARASITIC GROWTH TO BE EXCISED FROM FRENCH SOCIETY AS MR BERNIER POINTS OUT FRANCE HAD NO LIBEL LAWS AND HE CITES SICKENING BROADSIDES FROM THE GUTTER PRESS THAT OFTEN RIVALED THE STRIDENT PRESS ACROSS THE RHINE IF MR BERNIER CONDEMNS THE MORAL SQUALOR OF PREWAR PARIS HE IS EAGER TO REHABILITATE ITS ARTISTIC LEGACY IT IS TIME ONCE AGAIN FOR US TO KNOW THAT BEFORE THE END THE CITY OF LIGHT GLOWED AS BRIGHTLY AS EVER BEFORE IN ITS DAZZLING HISTORY ON STAGE MISTINGUETT STRUTTED DOWN STAIRWAYS IN TALL PLUMAGE WHILE JOSEPHINE BAKER MADE HER DEBUT CLAD IN A BUNCH OF BANANAS CHARLES TRENET CROONED DELIGHTFUL TUNES OF A MYTHICAL SMALLTOWN FRANCE THAT SUMMONED UP MORE INNOCENT DAYS AS IN WEIMAR GERMANY CULTURE FLOURISHED IN THOSE FEY DELIRIOUS MOMENTS BEFORE THE HISTORICAL BLACKOUT IN CONTRAST TO THE ESCAPISM RAMPANT IN THE CHIC SALONS WRITERS SUCH AS ANDRE MALRAUX ANDRE GIDE AND JEAN GIRAUDOUX GRAPPLED WITH TOUGH MORAL DILEMMAS WHILE FILMMAKER JEAN RENOIR PROVIDED A WITHERING VIEW OF THE HEDONISTIC ARISTOCRACY IN THE RULES OF THE GAME EVEN AS THE BEAU MONDE RETREATED INTO THE PAST ARTISTS EXPLORED A GRISLY FUTURE ANDRE BRETON AND THE SURREALISTS WITH THEIR SPECIAL CLAIM ON DARK SUBTERRANEAN CURRENTS PREFIGURED MANY HORRORS MALIGNANT FORCES INHABITED THE EERIE LANDSCAPES OF MAX ERNST AND SALVADOR DALI MEANWHILE JOAN MIRO AND PABLO PICASSO TURNED AGITPROP PIECES INTO DISTINGUISHED ART THE CATALOG OF ARTISTIC ACHIEVEMENT WAS STAGGERING IN HIS NARRATIVE MR BERNIER PERIODICALLY CIRCLES BACK TO THE GLAMOROUS DISSOLUTE CROWD OF TRENDSETTERS KNOWN AS THE TOUTPARIS HE DESCRIBES IN DETAIL THEIR CLOTHING VERITABLE ARCHITECTURAL CONSTRUCTIONS BY COCO CHANEL OR ELSA SCHIAPARELLI THIS SMART ATTIRE WAS RENDERED GARISHLY VULGAR BY SURROUNDING MISERY AT ONE FANCY BALL A COUPLE CAME DRESSED AS BANK NOTES AND GOLD COINS AT ANOTHER THEME PARTY GUESTS APPEARED AS PEASANTS CAUSING THE REDOUBTABLE SCHIAPARELLI TO WONDER WHY FRANCE'S REAL PEASANTS COULDN'T BEHAVE SO NOBLY ONE FLAW IN THIS OTHERWISE ADMIRABLE BOOK IS THAT MR BERNIER CALLS FORTH TWO CONTRADICTORY EMOTIONS THE MALODOROUS SMELL OF APPEASEMENT AND ANTISEMITISM THAT EMANATED FROM THE SALONS OF THE TOUTPARIS MAKES IT HARD FOR READERS TO SWOON OVER THEIR SEQUINS OSTRICH FEATHERS AND FANCY CARS THE PATCHES OF FASHIONMAGAZINE PROSE DETRACT FROM THE BOOK'S ESSENTIAL SERIOUSNESS PARADOXICALLY THE BOOK IS MOST ENTERTAINING WHEN MOST SERIOUS AND OFTEN INERT WHEN MOST GOSSIPY WE LEARN ABOUT WHAT THE TONY SET WORE ATE AND RODE IN BUT NOT WHAT THEY THOUGHT FELT OR DID MR BERNIER CAN'T SEEM TO RESOLVE HIS OWN AMBIVALENCE ABOUT THESE LIBERTINES THE NARRATIVE LEADS STRAIGHT TO THE MUNICH DISGRACE AS MR BERNIER NOTES FRANCE SUFFERED DISPROPORTIONATELY IN THE GREAT WAR WITH MORE THAN TWO MILLION DEAD OR DISABLED THE FRENCH SO DREADED ANOTHER CONFLICT THAT THEY BLOTTED OUT ALL SIGNS OF DANGER RATIONALIZING THE NAZI MENACE AT EVERY TURN FRANCE HAD NO WINSTON CHURCHILL TO ISSUE STERN DELPHIC WARNINGS THOSE ON THE LEFT WERE PACIFISTS BY PRINCIPLE THOSE ON THE RIGHT BY CONVENIENCE MR BERNIER TELLS HOW PREMIER EDOUARD DALADIER RETURNING FROM MUNICH WAS STUNNED BY CHEERING CROWDS AT THE AIRPORT HE KNEW HE HAD CUT A CYNICAL DEAL AGHAST HE PRIVATELY TOLD ONE MINISTER THE IDIOTS THEY DON'T KNOW WHAT THEY'RE APPLAUDING A YEAR LATER THE CHEERING STOPPED MR CHERNOW IS AUTHOR OF THE HOUSE OF MORGAN AND A HISTORY OF THE WARBURG BANKING FAMILY TO BE PUBLISHED THIS FALL BY RANDOM HOUSE 9304200107 930420 LETTERS TO THE EDITOR WITH CLEANER GASOLINE WE'LL BREATHE EASIER REGARDING YOUR MARCH 5 ARTICLE OFFICIALS STUDY ANTIPOLLUTION GASOLINE FOR HEALTH RISKS I WRITE TO SET STRAIGHT THE NATURAL RESOURCES DEFENSE COUNCIL'S NRDC POSITION ON THE USE OF METHYL TERTIARY BUTYL ETHER MTBE AND OTHER OXYGENATE ADDITIVES IN GASOLINE UNDER A CLEAN AIR ACT REQUIREMENT MTBE AND ETHANOL WERE ADDED TO GASOLINE THIS WINTER IN 39 CITIES WITH SERIOUS CARBON MONOXIDE POLLUTION PROBLEMS DURING COLD WEATHER CARBON MONOXIDE IS DANGEROUS TO PEOPLE WITH HEART DISEASE AND A POTENTIAL THREAT TO DEVELOPING FETUSES BOTH MTBE AND ETHANOL EFFECTIVELY CUT CARBON MONOXIDE EMISSION LEVELS IN CAR EXHAUST THE ENVIRONMENTAL PROTECTION AGENCY HAS REPORTED THAT THE NUMBER OF VIOLATIONS OF THE FEDERAL HEALTH STANDARD FOR CARBON MONOXIDE IN THESE CITIES FELL SIGNIFICANTLY THIS WINTER THE NRDC SUPPORTS THE OXYGENATE PROGRAM BECAUSE OF THE PUBLIC HEALTH BENEFITS I NEVER SINGLED OUT MTBE AS A POLLUTANT I POINTED OUT THAT MANY CHEMICALS IN GASOLINE INCLUDING ETHANOL THE OTHER OXYGENATE AND BENZENE A KNOWN CAUSE OF CANCER VAPORIZE INTO THE AIR ALL OF THESE VAPORS ARE POLLUTANTS AND PEOPLE SHOULDN'T BE EXPOSED TO ANY OF THEM THAT IS WHY NRDC SUPPORTS THE INSTALLATION OF GASOLINE VAPOR RECOVERY EQUIPMENT ON GAS PUMPS AND NEW CARS WE AWAIT ANALYSIS OF LONGTERM ANIMAL STUDIES PERFORMED TO SEE IF MTBE IS A CARCINOGEN IN ANY EVALUATION OF THOSE RESULTS IT WILL HAVE TO BE REMEMBERED THAT MTBE APPEARS TO REDUCE TOTAL EMISSIONS OF OTHER CANCERCAUSING CHEMICALS IN CAR EXHAUST THERE IS A KNOWN HEALTH PROBLEM WITH AN OXYGENATE ADDITIVE BUT IT CONCERNS ETHANOL NOT MTBE AND IT TAKES PLACE IN SUMMER NOT WINTER ETHANOL CAUSES A SHARP INCREASE IN GASOLINE VAPOR EMISSIONS MAKING IT A MAJOR CONTRIBUTOR TO HEALTHENDANGERING LEVELS OF OZONE DURING THE HOT WEATHER SMOG SEASON MTBE DOES NOT CAUSE THIS PROBLEM THE CLEAN AIR ACT REQUIRES CLEANER SUMMERTIME GASOLINE IN SMOGGY CITIES STARTING IN 1995 THE ETHANOL INDUSTRY PUSHED THE BUSH ADMINISTRATION FOR A LOOPHOLE THAT WOULD OVERLOOK THE EXTRA OZONE SMOG CAUSED BY ETHANOL IN SO DOING THE ETHANOL INDUSTRY BLATANTLY BROKE AN AGREEMENT IT NEGOTIATED AND SIGNED WITH THE GOVERNMENT THE OIL INDUSTRY AND ENVIRONMENTALISTS INCLUDING NRDC TO IMPLEMENT THESE CLEAN AIR ACT REQUIREMENTS THE FINAL DECISION WILL REST WITH PRESIDENT CLINTON'S EPA THIS SUMMER WHEN THE SUMMERTIME GASOLINE RULES MUST BE ISSUED NRDC HAS CALLED ON THE NEW ADMINISTRATION TO REJECT THE ETHANOL INDUSTRY'S EFFORT TO GAIN SPECIAL TREATMENT AT THE EXPENSE OF MORE OZONE SMOG FOR MILLIONS OF AMERICANS 9304200106 930420 PRODUCTION OF STEEL ROSE 13 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS INCREASED 13 LAST WEEK TO 1810000 TONS FROM 1787000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT INCREASED 006 FROM THE 1809000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 855 OF ITS CAPABILITY LAST WEEK COMPARED WITH 844 THE PREVIOUS WEEK AND 84 A YEAR AGO THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE ATWHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9304200105 930420 INTERNATIONAL INDIA AND PAKISTAN FEED OLD ANIMOSITIES ACCUSATIONS FLY IN WAKE OF BOMBINGS RELIGIOUS RIOTS BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL NEW DELHI AMONG THE MYRIAD THEORIES TO EXPLAIN LAST MONTH'S BOMBINGS IN BOMBAY ONE MANAGES TO INCORPORATE BOTH INDIA'S BRIGHTEST HOPE ECONOMIC REFORM AND ITS DARKEST FEAR PAKISTAN ACCORDING TO THIS CONJECTURE THOSE BEHIND THE SERIES OF BLASTS MARCH 12 WERE PAKISTANIBACKED GANGSTERS HOPING TO DERAIL LIBERAL ECONOMIC REFORMS THAT UNDERCUT ILLICIT BUSINESSES SUCH AS SMUGGLING AND BLACKMARKET CURRENCY AND BULLION DEALING THE BOMBS WHICH KILLED AT LEAST 300 PEOPLE AND WOUNDED 1500 DISRUPTED BOMBAY'S FASTINTERNATIONALIZING STOCK EXCHANGE AND SHATTERED BUSINESSES INDIAN INVESTIGATORS SAY THEY HAVE EVIDENCE THAT MEMBERS OF THE MEMON FAMILY MUSLIM SMUGGLERS IN BOMBAY FLED TO PAKISTAN A FEW DAYS BEFORE THE BOMBINGS AND THAT SOME OF THEIR ACCOMPLICES HAVE CONFESSED THEY WERE GIVEN EXPLOSIVES TRAINING IN PAKISTAN IN FEBRUARY TRUE OR NOT SUCH FEARS ILLUSTRATE A KEY EMBEDDED CHALLENGE FACING THIS COUNTRY OF 880 MILLION AS IT ATTEMPTS TO TACKLE REFORM AND ASSUME HIGHER GLOBAL STATURE ITS INTRACTABLY BAD OFTEN DANGEROUS RELATIONSHIP WITH PAKISTAN WHAT YOU HAVE IS A KIND OF STUNNED COUNTRY SAYS STEPHEN P COHEN A POLITICAL SCIENCE PROFESSOR AT THE UNIVERSITY OF ILLINOIS AND AUTHOR OF A BOOK ON THE CAUSES OF PAST INDIAPAKISTAN WARS INDIA HAS BEEN FLATTENED BY ECONOMIC CATASTROPHE THE END OF THE COLD WAR AND THE COLLAPSE OF ITS ALLIES IN THE SOVIET UNION THEY'RE LEFT WITH THEIR CHIEF ANTAGONIST PAKISTAN AND THE BEGINNINGS OF AN ECONOMIC PLAN MOREOVER THE TWO SOUTH ASIAN GIANTS ARE ONCE AGAIN ACTIVELY NURTURING OLD ANIMOSITIES THAT HAVE BROUGHT THEM TO WAR THREE TIMES IN RECENT WEEKS NEW DELHI AND ISLAMABAD HAVE ACCELERATED THE FLOW OF CHARGES AND COUNTERCHARGES TO A STREAM OF INVECTIVE AND INSINUATION THAT DIPLOMATS SAY IS THE WORST SINCE THE TWO COUNTRIES FOUGHT A 1971 WAR THAT CREATED BANGLADESH OUT OF WHAT WAS EAST PAKISTAN I HAVEN'T SEEN SUCH INTENSE DIPLOMATIC FALLOUT IN MY CAREER SAYS RIAZ KHOKHAR PAKISTAN'S HIGH COMMISSIONER IN NEW DELHI HE NOTES THAT INDIA SAYS IT WANTS PAKISTAN DECLARED A TERRORIST STATE ONLY LAST YEAR THE TWO COUNTRIES WERE DISCUSSING ECONOMIC COOPERATION EVEN A DOMESTIC POLITICAL SHOWDOWN THAT ON SUNDAY LED PAKISTAN'S PRESIDENT GHULAM ISHAQ KHAN TO DISMISS THE GOVERNMENT OF PRIME MINISTER NAWAZ SHARIF DIDN'T DEFLATE THE CONFRONTATION WITH INDIA INDEED MANY INDIANS THINK THE PRESIDENT IS MORE HOSTILE TO NEW DELHI THAN THE FORMER PRIME MINISTER WHO TWO WEEKS AGO MET HIS INDIAN COUNTERPART PV NARASIMHA RAO TO DISCUSS THE BOMBAY BOMBINGS AND OTHER BILATERAL ISSUES WHILE INDIA'S POLICE HAVEN'T REACHED ANY FORMAL CONCLUSIONS SEVERAL INDIAN MINISTERS HAVE ACCUSED PAKISTAN OF MASTERMINDING THE BOMBAY BOMBINGS PAKISTAN AN ISLAMIC COUNTRY IN TURN BLAMES INDIA FOR ALLOWING COMMUNAL RIOTS THAT LEFT MORE THAN 1000 MUSLIMS DEAD IN DECEMBER AND JANUARY INDIA SAYS PAKISTAN IS TRAINING TERRORISTS IN KASHMIR A MUSLIMDOMINATED REGION CLAIMED BY BOTH SIDES PAKISTAN SAYS INDIAN TROOPS HAVE MASSACRED INNOCENT KASHMIRIS SUCH TALK ALARMS ANALYSTS WHO FOLLOW THE COUNTRIES AS INDIA HAS NUCLEAR ARMS AND PAKISTAN IS THOUGHT TO HAVE THEM THERE ARE PROBABLY LIMITS TO THE ANTAGONISM BUT THERE IS NO MECHANISM FOR DEALING WITH THE LONGTERM RISK SAYS MR COHEN WHO IS SPENDING A YEAR DOING RESEARCH IN INDIA SOONER OR LATER WITH THE CURRENT LEVELS OF WEAPONS THE RISK OF AN ACCIDENT OR MISPERCEPTION IS THERE PAKISTANI AND INDIAN OFFICIALS CALL EXAGGERATED A MARCH ARTICLE IN THE NEW YORKER MAGAZINE THAT ONLY WASHINGTON'S INTERCESSION PULLED THE TWO SIDES BACK FROM THE BRINK OF NUCLEAR WAR IN 1990 THAT WAS A TIME OF REAL DANGER SAYS MR DIXIT WHO WAS INDIA'S HIGH COMMISSIONER IN THE PAKISTANI CAPITAL THEN BUT I DON'T THINK PAKISTAN WAS READYING A NUCLEAR STRIKE AGAINST US YET OFFICIALS ADMIT THAT TENSIONS NOW ARE EXTREMELY HIGH AGAIN AND DIFFICULT TO DEFUSE WHATEVER POWER STRUCTURE THERE IS IN PAKISTAN AND THERE ARE MANY THEY AREN'T WILLING TO BEGIN ANY KIND OF COOPERATION SAYS DINESH SINGH INDIA'S MINISTER OF EXTERNAL AFFAIRS IF SHARED HISTORY WERE A BAROMETER OF COMPATIBILITY THE TWO COUNTRIES SHOULD BE THE BEST OF FRIENDS WHEN THE BRITISH IN 1947 PARTITIONED THEIR COLONY ON THE SUBCONTINENT INTO MAINLY MUSLIM PAKISTAN AND PREDOMINANTLY HINDU INDIA THE COUNTRIES EMBARKED ON THE PATTERN OF HOSTILITY AND VIOLENCE THAT PERSISTS THE LAST SERIOUS EXCHANGE WAS LAST SEPTEMBER WHEN THE TWO SIDES MET TO DISCUSS AN ARMED STANDOFF ON SIACHEN GLACIER A 20000FOOTHIGH MOUNTAIN WASTELAND WHERE MORE LIVES ARE LOST FROM COLD AND ALTITUDE SICKNESS THAN BULLETS EVEN NOW WHEN BOTH COUNTRIES ARE ATTEMPTING ECONOMIC REFORM THEY FIND IT IMPOSSIBLE TO LOOK TOWARD EACH OTHER FOR BENEFIT MOST OF THEIR CONTACTS ARE POLITICAL ISLAMABAD KEEPS A CLOSE EYE ON INDIA'S TREATMENT OF THE 100 MILLIONPLUS MUSLIMS WHO LIVE THERE WE DON'T HAVE ANY SPECIAL RESPONSIBILITY FOR THEM SAYS MR KHOKHAR BUT THERE IS SOMETHING ODD ABOUT THE CAMPAIGN OF CERTAIN POLITICAL PARTIES IN INDIA WHICH HE SUGGESTS ARE OPENLY PROHINDU AND TACITLY ANTIMUSLIM THE LEADING SUCH PARTY IS THE THE MAIN OPPOSITION BHARATIYA JANATA PARTY OR BJP WHICH LED A RALLY OF HINDU ZEALOTS IN DECEMBER THAT ENDED UP DESTROYING A MOSQUE IN AYODHYA ON A SITE HINDUS BELIEVE IS THE BIRTHPLACE OF THE GOD RAM THE DESTRUCTION OF THE MOSQUE TRIGGERED A WEEK OF MUSLIMHINDU RIOTING THAT LEFT AT LEAST 1200 PEOPLE DEAD NATIONWIDE LK ADVANI A SENIOR BJP LEADER SAYS THAT WHILE THE BJP IS A SECULAR PARTY IT MUST STAND UP TO THOSE WHO WOULD MAKE THE VERY WORD HINDU' TABOO HE SAYS HE DOESN'T BELIEVE THE HINDUMUSLIM TENSIONS THAT FLARED AT AYODHYA WERE RESPONSIBLE FOR ENSUING RIOTS OR THE BOMBAY BOMBINGS FOR WHICH HE SAYS THE NEEDLE OF SUSPICION POINTS TO ISLAMABAD AYODHYA HAS COME AS A SCAPEGOAT FOR POOR POLICIES OF INDIA'S RULING CONGRESS PARTY HE SAYS THE FACT IS THINGS HAVE BEEN MISMANAGED MISHANDLED AND NOT JUST RELIGIOUS AFFAIRS MR ADVANI SAYS ECONOMIC REFORM WHICH HIS PARTY SUPPORTED IN ITS LAST PLATFORM IS GETTING OUT OF HAND THE BJP HE SAYS NOW OPPOSES GLOBALIZATION OF INDIA'S ECONOMY THUS SOME RULINGPARTY LEADERS SAY COMMUNAL VIOLENCE AND THE ASSOCIATED TENSIONS WITH PAKISTAN MAY ERODE THE COUNTRY'S FUTURE IF THEY WANT TO ALTER THE FOUNDATIONS OF OUR POLITY NATURALLY YOU HAVE TO RESIST IT SAYS ARJUN SINGH THE MINISTER OF HUMAN RESOURCES AND AN ARDENT PROPONENT OF THE CONGRESS PARTY'S SECULAR POSTURE WHO IS EMERGING AS AN ALTERNATIVE POWER CENTER IN THE PARTY TO PRIME MINISTER RAO MR SINGH SAYS INDIA CAN SORT OUT ITS COMMUNAL PROBLEMS ONLY THROUGH SECULARISM THE ONLY REGRET A LOT OF PEOPLE IN THIS COUNTRY FEEL IS WHY DOES PAKISTAN NOT RECIPROCATE THE FEELINGS OF INDIA TO HAVE A CLOSE FRIENDLY RELATIONSHIP HE SAYS SUMAN DUBEY CONTRIBUTED TO THIS ARTICLE 9304200102 930420 BUSINESS BRIEF U S WEST REPORTS NET OF 3161 MILLION FOR 1ST PERIOD PACTEL POSTS LARGE LOSS U S WEST INC REPORTED A PROFIT FOR THE FIRST QUARTER AGAINST A YEAREARLIER LOSS WHILE PACIFIC TELESIS GROUP POSTED A FIRSTQUARTER LOSS OF 17 BILLION REFLECTING NEW ACCOUNTING STANDARDS AND RESERVES TAKEN FOR RESTRUCTURING MOVES U S WEST A COMMUNICATIONS MARKETING AND FINANCIALSERVICES CONCERN REPORTED NET INCOME OF 3161 MILLION OR 76 CENTS A SHARE REVENUE ROSE 41 TO 262 BILLION FROM 251 BILLION IN THE YEAREARLIER PERIOD THE COMPANY BASED IN ENGLEWOOD COLO POSTED A LOSS OF 148 BILLION OR 358 A SHARE INCLUDING THE EFFECT OF A CHARGE OF 179 BILLION OR 435 A SHARE FOR ACCOUNTING FOR RETIREMENT AND HEALTH BENEFITS FOR EMPLOYEES THE YEAREARLIER PERIOD ALSO REFLECTED A 36 MILLION INTERNAL REVENUE SERVICE SETTLEMENT AND A 15 MILLION CHARGE FOR DEBT REFINANCING IN THE 1993 FIRST QUARTER THE NUMBER OF TELEPHONE ACCESS LINES GREW 34 TO 440000 COMPARED WITH GROWTH OF 28 A YEAR EARLIER U S WEST SAID THE NUMBER OF SUBSCRIBERS TO ITS U S WEST CELLULAR UNIT ROSE 33 TO 435000 SINCE MARCH 1992 IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE U S WEST WAS QUOTED AT 43875 UP 375 CENTS PACIFIC TELESIS GROUP'S LOSS OF 17 BILLION AMOUNTED TO 425 A SHARE REVENUE ROSE ABOUT 4 TO 25 BILLION FROM 24 BILLION WITHOUT THE CHARGES NET INCOME FELL 5 TO 265 MILLION FROM 279 MILLION IN THE YEAREARLIER QUARTER THE 1992 QUARTER INCLUDED A GAIN OF ABOUT FIVE CENTS A SHARE DUE TO ONETIME ITEMS RELATED TO PRIOR YEARS WITHOUT THE GAIN OPERATING RESULTS IN THE 1993 QUARTER WOULD BE FLAT COMPARED WITH THE 1992 PERIOD THE SAN FRANCISCO COMPANY SAID ALTHOUGH PACIFIC TELESIS GROUP WILL RECOGNIZE ITS LIABILITY FOR FUTURE RETIREE HEALTH BENEFITS IMMEDIATELY ITS PACIFIC BELL SUBSIDIARY WILL RECOGNIZE THE LIABILITY OVER 20 YEARS THE UNIT POSTED EARNINGS OF 244 MILLION IN THE YEAREARLIER QUARTER ITS EARNINGS WERE 287 MILLION INCLUDING SEVERAL ONETIME GAINS TOTALING 25 MILLION REVENUE ROSE 2 TO 22 BILLION IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE PACIFIC TELESIS WAS QUOTED AT 49125 UNCHANGED 9304200101 930420 TECHNOLOGY GOLDMAN AWARDS HONOR ENVIRONMENTAL EFFORTS SAN FRANCISCO THE GOLDMAN ENVIRONMENTAL FOUNDATION PRESENTED ITS ANNUAL PRIZES TO RECOGNIZE EFFORTS IN DEFENSE OF THE ENVIRONMENT THE GOLDMAN AWARDS SPONSORED BY SAN FRANCISCO PHILANTHROPISTS RICHARD AND RHODA GOLDMAN WERE ESTABLISHED IN 1990 EACH WINNER WILL GET 60000 DAI QING A CHINESE JOURNALIST WAS RECOGNIZED FOR CRITICIZING THE GOVERNMENT'S PLAN TO BUILD THE WORLD'S LARGEST DAM ON THE YANGTZE RIVER BIOLOGIST SVIATOSLAV ZABELIN HAS CRUSADED TO SAVE FORESTS WATERWAYS AND WILDLIFE IN RUSSIA GARTH OWENSMITH AND MARGARET JACOBSOHN HAVE WORKED FOR YEARS IN NAMIBIA TO STOP POACHING OF ELEPHANTS AND RHINOS JUAN MAYR WON FOR HIS EFFORTS TO HALT DEVASTATION IN COLOMBIA'S SIERRA NEVADA DE SANTA MARIA MOUNTAINS JOANN TALL A LAKOTA INDIAN ORGANIZED RESISTANCE TO PLANS TO USE LAND ON THE PINE RIDGE RESERVATION IN SOUTH DAKOTA FOR A HAZARDOUSWASTE DUMP JOHN SINCLAIR WON FOR HIS 22 YEARS OF WORK TO PROTECT FRASER ISLAND OFF THE COAST OF QUEENSLAND AUSTRALIA FROM SAND MINERS AND LOGGERS 9304200100 930420 BUSINESS WORLD SILICON VALLEY'S FATEFUL ATTRACTION THEN AND NOW BY TIM W FERGUSON ONE OF MANY FLACKERY COUPS FOR THE CLINTON CAMPAIGN LAST FALL WAS THE IMAGE THAT SILICON VALLEY HAD EMBRACED THE DEMOCRATIC CANDIDATE THE NEW PRESIDENT KEPT THE IMPRESSION ALIVE WITH A RECENT STOP IN CALIFORNIA'S GREAT HIGHTECH ZONE THE FACT IS THAT WHILE EXECUTIVES IN THE VALLEY WERE UNHAPPY WITH GEORGE BUSH AND SEVERAL DID BACK BILL CLINTON THEY WERE NOT OF ONE MIND THEN AND SEEM LESS SO NOW THERE IS LINGERING DISPLEASURE OVER THE ORCHESTRATION OF THE CLINTON ENDORSEMENT AND SOME PIQUE AT JOHN SCULLEY THE APPLE COMPUTER BOSS AND ONETIME PEPSICO OFFICIAL WHO REMAINS THE PRESIDENT'S MOST PROMINENT CORPORATE BOOSTER DON'T ASSUME THAT THE PEPSICOLA KID SPEAKS FOR SILICON VALLEY VENTURE CAPITALIST DON VALENTINE AN EARLY INVESTOR IN APPLE AND LATER IN STANDOUT CISCO SYSTEMS IS SAID TO CAUTION THE SOARING EAGLES OF HIGHTECH HIS QUOTE GOES ON ARE NOT FLOCKING BIRDS LED BY SOFTDRINK SALESMEN TENSIONS HAVEN'T BEEN EASED BY THE CLINTON TAXANDSPEND PROGRAM WHICH IS DECIDEDLY NOT WHAT MOST HIGHTECH CHIEFTAINS WANTED TJ RODGERS THE VOLUBLE LEADER OF CYPRESS SEMICONDUCTOR AND A CLINTON CRITIC ALL ALONG IS LEADING A CHARGE AGAINST THE WHITE HOUSE ECONOMIC PACKAGE IN CONGRESSIONAL TESTIMONY LAST MONTH AND IN A BARBED LETTER TO HIS NEW CLINTONITE CONGRESSWOMEN ANNA ESHOO LAST WEEK HE RECITED THE SECONDING SENTIMENTS OF OTHER CEOS IN THE VALLEY SUCH AS SCOTT MCNEALY OF SUN MICROSYSTEMS AND FINIS CONNER OF CONNER PERIPHERALS THOSE TWO AND MR VALENTINE WHO ALSO SPOKE THROUGH MR RODGERS COULDN'T BE REACHED FOR FOLLOWUPS GILBERT AMELIO ANOTHER OF THE VICARIAL ALLIES WAS AVAILABLE PRESIDENT AND CEO OF NATIONAL SEMICONDUCTOR FOR NEARLY TWO YEARS NOW HE'S SOUR ON MR CLINTON'S MACROECONOMICS BUT EVEN THOUGH HE ENDED UP SUPPORTING THE REPUBLICANS LAST FALL MR AMELIO HEDGES HIS BETS WHEN IT COMES TO MICROPOLICY FOR HIGHTECH LIKE OTHERS IN THE VALLEY HE RESPECTS THE ELECTRONICS IQ OF THE CLINTONGORE BUNCH AND THINKS THERE'S PROMISE OF BETTER ALTHOUGH NOT NECESSARILY MORE FEDERAL BACKING FOR THE INDUSTRY MR AMELIO SUCCEEDED THE PIONEER CHARLES SPORCK WHO IN TURN WAS A FOUNDER OF SEMATECH THE GOVERNMENTINDUSTRY CHIPMAKING CARTEL NATIONAL SEMI NO 4 IN SALES AMONG US PRODUCERS LAST YEAR HAS LONG BACKED A MUSCULAR TRADE POLICY THAT HASN'T CHANGED ALTHOUGH MR AMELIO HAS PURSUED A SHIFT FROM COMMODITY TO SPECIALIZED OUTPUT THAT HAS THE COMPANY LESS VULNERABLE IN WORLD MARKETS THE 50YEAROLD FORMER ROCKWELL AND FAIRCHILD EXECUTIVE ISN'T INTERESTED IN PICKING A FIGHT WITH THE PRESIDENT ANY MORE THAN HE WAS WHEN HE SHOWED UP AT A CLINTONCEO KLATCH IN THE VALLEY LAST SEPTEMBER AS MR AMELIO RECALLS IT 10 QUESTIONS WERE PUT TO THE CANDIDATE THEN AND FILLING THE SILENCES HE ASKED FIVE OF THEM THE ANSWERS LEFT HIM NOT TERRIBLY COMFORTABLE WITH CLINTONOMICS AS A WHOLE BUT AT THE URGING OF HEWLETTPACKARD'S JOHN YOUNG HE SIGNED ON TO THE DEMOCRATIC HOPEFUL'S HIGHTECH VISION BEFORE HE KNEW IT HE WAS BEING PARADED AS AN ENDORSER OF THE CAMPAIGN ITSELF THE BUSH CAMP WAS TYPICALLY LIMP AT TOUTING THE ACTUAL BACKING OF MR AMELIO AND DOZENS OF OTHER EXECUTIVES A FEW WEEKS LATER AND BY THEN THE DIE HAD BEEN CAST TECH LOVED BILL BUT MR AMELIO SAYS HE HADN'T WAVERED IN HIS BELIEF THAT HIGHER TAXES FOR MORE PUBLIC SPENDING EVEN IF IT'S CALLED INVESTMENT IS BAD NEWS FOR THE ECONOMY AND ALL THE INDUSTRIES IN IT THE CLINTON ADMINISTRATION'S DESIRES AND INTENTIONS MAY BE SOUND BUT HE SAYS IT WON'T ENCOURAGE JOB GROWTH WITH ITS TAX AND LABOR POLICIES A RISING MINIMUM WAGE TOGETHER WITH ALL THE OTHER PAYROLL REQUIREMENTS LESSENS THE CHANCE THAT A WELFARE RECIPIENT WILL BE HIRED FOR A YEAR'S WORTH OF TRAINING IN CHIP MANUFACTURE HE CONTENDS NATIONAL SEMI HAS CUT BACK EMPLOYEES BUT WILL STICK WITH A MAJOR PLANT IN SINGAPORE WHERE THE AUTHORITIES ARE VERY PROBUSINESS AND SUBSIDIZE SITE AND STAFF PREPARATION MR AMELIO FAVORS DRAMATIC CUTS IN SCHEDULED TAXATION SUCH AS A CAPITALGAINS RATE THAT DWINDLES TO ZERO FOR HOLDINGS OF FIVE YEARS UNLIKE THE CLINTONITES HE WOULDN'T LIMIT A CAPGAINS BREAK TO PUNY ENTERPRISES IF YOU LOOK AT THE ACTUAL HISTORY OF THE VALLEY HE SAYS NOBODY'S HIRED MANY WORKERS BEFORE DOING 30 MILLION IN SALES AND MOST ARE 100 MILLION TO 150 MILLION ENTITIES BY THE TIME THEY ARE VIABLE COMPANIES ALSO HE COMPLAINS LARGER COMPANIES ALREADY ENCOUNTER HEAD WINDS THAT DISADVANTAGE THEM ABOVE VARIOUS THRESHOLDS FOR EXAMPLE THEY FALL UNDER REPORTING AND BENEFITS REQUIREMENTS THAT SMALLER COMPETITORS DON'T WASHINGTON COMMITS THE TAXPAYERS TO BETWEEN 500 MILLION AND 1 BILLION A YEAR TO ASSIST HIGHTECH AT PRESENT MR AMELIO SAYS BUT IT'S SO SCATTERED THAT THE TOTAL IS IN DOUBT THE AMOUNT NEEDN'T BE INCREASED BUT TARGETS SHOULD BE NARROWED DOWN TO THINGS THAT MAKE A DIFFERENCE HE MAINTAINS TOUGH TECHNICAL PROBLEMS SUCH AS THOSE DEALING WITH OPTICS AND MATERIALS SCIENCE COULD BE TACKLED TO GENERAL BENEFIT WORK ON XRAY LITHOGRAPHY HE SAYS WOULD HELP INNOVATIVE STARTUPS AS WELL AS ESTABLISHED CONCERNS CONGRESSIONAL PORKING IS ALWAYS A CONCERN BUT A BLUERIBBON PANEL COULD CUT THROUGH THE LOBBYING INTERESTS MR AMELIO BELIEVES HE HAS MET WITH JOHN GIBBONS AL GORE'S TECHNOLOGY DEPUTY AND WAS IMPRESSED IT MIGHT BE REMEMBERED THAT AN EARLIER ALLSTAR COMMISSION THE ONE ON INDUSTRIAL COMPETITIVENESS HEADED BY MR YOUNG OF HEWLETTPACKARD IN THE MID1980S WAS THE START OF MANY OF THE PROBLEMS REPUBLICANS HAD WITH BUSINESS TITANS DISGRUNTLEMENT OVER INACTION ON THE PANEL'S RECOMMENDATIONS CULMINATED IN WIDESCALE ABANDONMENT OF MR BUSH IN 1992 IN FAVOR OF AN OPPONENT WHO SEEMED TO LISTEN AND UNDERSTAND ALTHOUGH BY MR AMELIO'S RECKONING MR CLINTON IS WELL SHORT OF 50 BACKING IN SILICON VALLEY TODAY MANY EXECUTIVES ARE UNSHAKEN IN THE NOTION THAT SMART GOVERNMENT OFFICIALS WILL REACT IN BUSINESSLIKE FASHION TO OBVIOUS CHALLENGES JUST AS THOSE IN CORPORATIONS DO BUT THE TWO WORLDS ARE NECESSARILY DIFFERENT SOMETIMES PUBLIC OFFICIALS FAIL TO RESPOND BECAUSE THEY ARE DUMB DISENGAGED OR INCOMPETENT OTHER TIMES HOWEVER IT IS BECAUSE A POLITICAL PHILOSOPHY DEEPER THAN MANAGEMENT 101 INFORMS THEM OF OTHER LIKELY AND UNDESIRABLE CONSEQUENCES FROM DOING SO WITH MESSRS REAGAN AND BUSH AND THEIR AIDES IT WAS A COMBINATION BUSINESSPEOPLE WHOSE AVERSION TO TAXES AND REGULATION IS INSTINCTIVELY STRONG ENOUGH WILL LIKE MR AMELIO PULL BACK FROM A PACT WITH THE POLITICAL DEVIL YET AS IS EVIDENT ON MATTERS OF TRADE LAW AND TECHNICAL SUPPORT PARTNERSHIP WITH THE GOVERNMENT STILL LURES EVEN ENTREPRENEURIAL SPIRITS WHATEVER THE BALANCE IN SILICON VALLEY YOU'D HAVE TO SAY THE INITIAL PUBLIC OFFERING OF CLINTON & CO IS IN TROUBLE 9304200099 930420 MARKETING A MEXICAN WAR HEATS UP FOR COLA GIANTS BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY THIS COUNTRY IS FAMOUS FOR DISTINCTIVE BEVERAGES SUCH AS TEQUILA AND MESCAL BUT MEXICANS WITH A THIRST ARE MOST LIKELY TO REACH FOR A COKE OR A PEPSI NOW COMPETITION BETWEEN THE COLA GIANTS IS HEATING UP IN THIS MARKET WHOSE PERCAPITA CONSUMPTION IS SECOND ONLY TO THAT OF THE US COMBINE A WARM CLIMATE A YOUTHFUL POPULATION INFAMOUSLY UNSANITARY TAP WATER AND A HISTORY OF PRICE CONTROLS AND IT'S EASY TO SEE WHY THE AVERAGE MEXICAN DRINKS A LITTLE MORE THAN ONE 12OUNCE SOFT DRINK A DAY ADD THE ECONOMIC EFFERVESCENCE SURROUNDING THE PROPOSED NORTH AMERICAN FREE TRADE AGREEMENT AND A SOUTH OF THE BORDER COLA WAR IS ON FRESH FROM A 190 MILLION GLOBAL STOCK OFFERING MEXICO CITY'S GRUPO EMBOTELLADOR DE MEXICO SA OR GEMEX THE LARGEST PEPSI BOTTLER OUTSIDE THE US IS EXPANDING ITS REACH INTO THE SOUTHERN MEXICO MARKET LONG DOMINATED BY COKE MEANWHILE MONTERREYBASED FOMENTO ECONOMICO MEXICANO SA OR FEMSA A BEER AND SOFTDRINK COMPANY THAT OWNS THE LARGEST COKE FRANCHISE IN THE WORLD IS NEGOTIATING THE SALE OF AN EQUITY STAKE TO COCACOLA CO TO HELP FINANCE A FRONTAL ATTACK ON PEPSICO INC'S MEXICO CITY STRONGHOLD OTHON RUIZ FEMSA'S CHIEF EXECUTIVE OFFICER SAID RECENTLY THAT THE COMPANY IS NEAR AN AGREEMENT TO SELL COCACOLA A 30 TO 49 STAKE IN ITS SOFTDRINK OPERATIONS THE SOFTDRINK UNIT WHICH PROVIDED ABOUT ONEQUARTER OF FEMSA'S 212 BILLION IN 1992 REVENUE WOULD THEN GET A SEPARATE LISTING ON THE NEW YORK STOCK EXCHANGE CARLOS LABOY AN ANALYST AT JAMES CAPEL INC VALUES THE ENTIRE FEMSA SOFTDRINK DIVISION AT FROM 800 MILLION TO 12 BILLION FEMSA'S NEGOTIATING POSITION WAS ENHANCED IN MARCH WHEN ANHEUSERBUSCH COS AGREED TO PAY 477 MILLION FOR AN 18 STAKE IN GRUPO MODELO SA BREWER OF THE WELLKNOWN CORONA BEER IT WAS A RICH VALUATION FOR A MEXICAN BEVERAGE COMPANY WHICH IS GOOD NEWS FOR FEMSA SAYS SCOTT GALLE WHO FOLLOWS MEXICAN STOCKS FOR DA CAMPBELL CO IN SANTA MONICA CALIF EVEN THOUGH FEMSA'S HAND HAS BEEN STRENGTHENED IT WILL NEED ADDITIONAL RESOURCES SOON TO CONTEND WITH GEMEX WHICH IS ONE OF PEPSI'S STRONGEST FOREIGN AFFILIATES IN MEXICO AC NIELSEN ESTIMATES THAT FOR THE EIGHT WEEKS ENDED JAN 31 COKE HAD A 50 SHARE OF THE TAKEHOME MARKET COMPARED WITH 21 FOR PEPSI WHICH DOESN'T YET HAVE BOTTLERS IN SEVERAL KEY REGIONS OF THE COUNTRY BUT COKE AND PEPSI SPLIT THE MARKET ALMOST EVENLY IN GEMEX'S BASE OF MEXICO CITY THE WORLD'S LARGEST METROPOLIS GEMEX HAS PROVEN ITSELF AN INNOVATIVE MARKETER A YEAR AND A HALF AGO IT LAUNCHED A 15LITER RETURNABLE PEPSI BOTTLE THAT WAS A HUGE HIT FEMSA DIDN'T RESPOND WITH A SIMILAR COKE PRODUCT FOR SEVERAL MONTHS THAT WASN'T THE ONLY TIME GEMEX BEAT FEMSA TO THE PUNCH A COUPLE OF YEARS AGO FEMSA'S DELIVERIES IN MEXICO CITY WERE UPSET BY A GOVERNMENT ANTIPOLLUTION PROGRAM THAT REQUIRED ALL VEHICLES TO BE IDLED ONCE A WEEK GEMEX MAINTAINED A FULL DELIVERY SCHEDULE BY BUYING NEW TRUCKS IF FEMSA HASN'T ALWAYS HAD THE MARKETING SAVVY OR FINANCIAL RESOURCES TO PARRY GEMEX'S THRUSTS THAT MAY BE BECAUSE THE COKE FRANCHISE IS JUST ONE SPOKE IN THE WHEEL OF MONTERREY'S GIANT GRUPO VISA VISA A CONGLOMERATE CONTROLLED BY THE STORIED GARZA SADA CLAN HAS SOMETIMES RUN MAJORITYOWNED FEMSA WITH AN EYE TOWARD ITS OUTSIDE INTERESTS IN 1991 FOR INSTANCE VISA DESIGNATED FEMSA AS THE BORROWER OF A 610 MILLION BRIDGE LOAN TO FACILITATE VISA'S PURCHASE OF MEXICO'S SECONDLARGEST BANK TO BE SURE THE SOFTDRINK INDUSTRY WAS FOR DECADES HAMSTRUNG BY REGULATIONS THAT MADE IT HIGHLY UNATTRACTIVE TO INVESTORS THE HIGHLY CONTROLLED ENVIRONMENT CAUSED A DECAPITALIZATION IN THE INDUSTRY SAYS RUBEN PIETROPAOLO GEMEX'S CHIEF EXECUTIVE OFFICER THEN ALONG CAME MEXICO'S HARVARDTRAINED PRESIDENT CARLOS SALINAS DE GORTARI IN 1989 HE ELIMINATED A SPECIAL 16 TAX ON SOFT DRINKS OLD RESTRICTIONS ON MARKETING AND PACKAGING WERE REMOVED FROM THE BOOKS THE TRANSFORMATION WAS CAPPED LAST JANUARY WHEN PRICE CONTROLS WERE FINALLY LIFTED IN THE MIDST OF THIS LIBERALIZATION GEMEX'S CONTROLLING SHAREHOLDER ENRIQUE MOLINA BUILT HIS COMPANY FROM A SINGLE PEPSI PLANT TO A GROUP OF SIX BOTTLERS WITH 1992 SALES OF 414 MILLION THE SALINAS REFORMS AND THE PRESSURE FROM GEMEX WERE CATALYSTS FOR FEMSA'S PRESENT SEARCH FOR A FOREIGN PARTNER'S EXPERTISE AND CAPITAL REGIONAL BOTTLERS FEELING THE PRESSURE FROM GEMEX AND FEMSA ARE BEGINNING TO GEAR FOR GREATER COMPETITION AS WELL GRUPO EMBOTELLADORAS UNIDAS SA A GUADALAJARABASED PEPSI BOTTLER RECENTLY SOLD A 20 EQUITY STAKE TO PEPSICO EMBOTELLADORA DEL VALLE DE ANAHUAC SA A PEPSI BOTTLER ACTIVE IN SEVERAL STATES SURROUNDING THE CAPITAL IS PREPARING TO GO PUBLIC IN A 45 MILLION STOCK OFFERING EVEN WITH THE FLURRY OF CHANGES MEXICO'S SOFTDRINK BUSINESS RETAINS AN OLDFASHIONED AIR FULLY 97 OF ALL SALES ARE OF RETURNABLE BOTTLES A FACT THAT REQUIRES BOTTLERS TO OPERATE ELABORATE GLASSSTORAGE FACILITIES ALSO MOST DELIVERIES ARE MADE TO MOMANDPOP GROCERY STORES OR CHANGARROS INSTEAD OF SUPERMARKETS BECAUSE OF THE FRAGMENTATION OF THE MEXICAN RETAIL BUSINESS A DISTRIBUTION SYSTEM IS ONE OF THE MOST VALUABLE PIECES OF THE BOTTLER'S FRANCHISE AS WELL AS ONE OF THE BIGGEST BARRIERS TO OUTSIDE COMPETITION DISTRIBUTION IS SO IMPORTANT THAT FEMSA'S MR RUIZ IS KNOWN TO RIDE THE TRUCKS HIMSELF TO GET A VIEW FROM THE FRONT LINES A TYPICAL FEMSA CUSTOMER IS ARTURO ESPINOZA WHOSE TINY MEXICO CITY GROCERY SHOP HAS A CRUCIFIX AND A COKE PLACARD AS ITS ONLY DECORATIONS HAVING LITTLE WORKING CAPITAL MR ESPINOZA DEPENDS ON HIS COKE DELIVERYMAN TO STOP BY EVERY OTHER DAY HE IS SO IMPORTANT TO ME MR ESPINOZA SAYS OF THE COKE MAN THAT I EVEN INVITED HIM TO MY DAUGHTER'S 15TH BIRTHDAY PARTY AS FEMSA AND GEMEX BATTLE FOR MARKET SHARE THE COMPETITION WILL PROBABLY FOCUS ON SERVICE AND MARKETING RATHER THAN PRICE WHICH IS STILL ONLY TWOTHIRDS THE AVERAGE IN THE REST OF THE HEMISPHERE GOLDMAN SACHS NOTES THAT THE FRAGMENTED MARKET MAKES IT DIFFICULT TO ENSURE THAT DISCOUNTS ARE ACTUALLY PASSED ONTO CONSUMERS AND NO ONE IN THIS NEWLY LIBERALIZED INDUSTRY HAS MUCH STOMACH FOR A PRICE WAR IT WOULD BE ILLOGICAL GEMEX'S MR PIETROPAOLO SAYS TO START DISCOUNTING IF WE'VE BEEN FIGHTING 20 YEARS FOR A BETTER PRICE THAT DOESN'T MEAN THERE WON'T BE FIERCE TURF BATTLES MR RUIZ SAYS FEMSA WILL INVEST AS MUCH AS 600 MILLION FOR THREE NEW COKE PLANTS NEAR GEMEX'S MEXICO CITY DOMAIN AND TWO PLANTS IN ITS OWN SOUTHEAST TERRITORY TO IMPROVE DISTRIBUTION FEMSA IS CREATING A SEPARATE FORCE OF COMPUTEREQUIPPED SALESMEN WHOSE PRESENCE SHOULD ALLOW TRUCK DRIVERS TO CONCENTRATE ON DELIVERIES AND INCREASE PRODUCTIVITY IN THE COMPETING CAMP PEPSICO JUST AWARDED GEMEX A FRANCHISE IN THE YUCATAN PENINSULA WHERE COKE HAS 70 OF THE MARKET MR PIETROPAOLO SAYS HE'S GIRDING FOR A HORSE RACE AND HE CLEARLY MEANS IT MOUNTED ON THE HARDNOSED EXECUTIVE'S OFFICE WALL ARE A WHIP AND A SET OF SPURS GOINGAWAY GIFTS FROM SUBORDINATES AT HIS PREVIOUS PEPSI POSTS 9304200098 930420 TECHNOLOGY DELL CREATES LINE OF PCS FOR SUPERSTORE SHOPPERS DELL COMPUTER CORP HOPING TO SNAG MORE HOME AND SMALLBUSINESS COMPUTER USERS SAID IT HAS BEGUN SELLING A NEW FAMILY OF PERSONAL COMPUTERS TAILORED FOR PEOPLE WHO SHOP AT WAREHOUSE SUPERSTORES THE AUSTIN TEXAS COMPUTER COMPANY KNOWN PRIMARILY FOR ITS MAILORDER PC BUSINESS TOLD ANALYSTS IT EXPECTS TO SHIP AS MANY AS 4000 OF ITS NEWLY CONFIGURED PRECISION COMPUTERS IN THE NEXT MONTH DELL IS SELLING THE MACHINES THROUGH ABOUT 350 SAM'S CLUB AND PRICE CLUB LOCATIONS THROUGHOUT THE COUNTRY SAM'S CLUB IS A UNIT OF WALMART STORES INC PRICE CLUB IS A UNIT OF PRICE CO THE MOVE ACCORDING TO A SPOKESWOMAN IS PART OF A PUSH BY DELL TO BROADEN ITS CUSTOMER BASE BEYOND THE CORPORATE BUYERS THAT NOW MAKE UP ITS CORE BUSINESS DELL IS OFFERING FOUR CONFIGURATIONS OF ITS PRECISION MACHINES WHICH HAVE A SHORTER WARRANTY THAN OTHER DELL PRODUCTS AND DON'T INCLUDE SPECIAL DIAGNOSTIC SOFTWARE DESIGNED TO HELP USERS LOCATE PROBLEMS 9304200097 930420 CHRYSLER REPORTS FIRSTQUARTER LOSS OF 42 BILLION AFTER CHARGE STOCK FALLS BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT DRAGGED DOWN BY A BIG ONETIME CHARGE FOR RETIREE MEDICAL BENEFITS CHRYSLER CORP POSTED A FIRSTQUARTER LOSS OF 42 BILLION OR 1281 A SHARE AND THE NO 3 US AUTO MAKER'S SHARES TUMBLED ON FEARS THAT ITS RECENT SURGE IN OPERATING PROFIT IS PEAKING AS EXPECTED CHRYSLER TOOK A 47 BILLION CHARGE AGAINST FIRSTQUARTER RESULTS TO REFLECT FUTURE COSTS OF RETIREE MEDICAL BENEFITS THE COMPANY SAID THE CHARGE WILL RESULT IN A NET LOSS FOR THE ENTIRE YEAR EXCLUDING THAT NONCASH CHARGE CHRYSLER EARNED 530 MILLION OR 157 A SHARE A SHARP REBOUND FROM THE AUTO MAKER'S YEAREARLIER LOSS OF 13 MILLION OR SEVEN CENTS A SHARE AFTER ONETIME GAINS CHRYSLER'S REVENUE ROSE 33 TO 109 BILLION IN THE LATEST QUARTER BUT FOR THE FIRST QUARTER IN THE PAST 12 MONTHS CHRYSLER'S OPERATING RESULTS DIDN'T EXCEED ANALYSTS' EXPECTATIONS SOME ANALYSTS SAID THE ABSENCE OF A BIG POSITIVE SURPRISE INDICATED TO SOME INVESTORS THAT CHRYSLER'S EARNING POWER HAS PEAKED CHRYSLER SHARES TUMBLED 175 TO 42 IN HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING LATE YESTERDAY SOME OF WALL STREET'S CONCERNS FOCUSED ON COMMENTS BY COMPANY OFFICIALS YESTERDAY THAT CHRYSLER WILL FACE HIGHER COSTS IN THE THIRD QUARTER AS IT PREPARES TO LAUNCH NEW MODELS INCLUDING A SMALL CAR CALLED THE NEON CHRYSLER OFFICIALS TOLD ANALYSTS IT WILL PAY 30 MILLION TO 50 MILLION MORE TO LAUNCH PRODUCTS DURING THE THIRD QUARTER THAN IT DID DURING THE FIRST QUARTER DURING THE THIRD QUARTER THE AUTO MAKER ALSO WILL SHUT ITS ASSEMBLY PLANTS IN WARREN MICH AND BELVIDERE ILL FOR MODEL CHANGEOVERS A LITTLE REALITY WILL BE CREEPING INTO THE EQUATION IN THE NEXT COUPLE OF QUARTERS SAID JACK KIRNAN AN AUTO ANALYST WITH SALOMON BROTHERS MORE PEOPLE WILL QUESTION WHETHER CHRYSLER WILL BE ABLE TO PRODUCE THE KIND OF EARNINGS IN THE NEXT TWO QUARTERS THAT WE THOUGHT THEY COULD A QUARTER AGO STILL CHRYSLER'S FIRSTQUARTER OPERATING RESULTS SHOWED A STRONG RECOVERY FROM A YEAR EARLIER GENERAL MOTORS CORP AND FORD MOTOR CO ARE EXPECTED TO REPORT FIRSTQUARTER PROFITS NEXT WEEK BOTH AUTO MAKERS TOOK CHARGES FOR ACCOUNTING CHANGES IN THE FOURTH QUARTER WHICH CONTRIBUTED TO THEIR HUGE LOSSES IN 1992 HOWEVER SOME ANALYSTS EXPECT THEIR OPERATING RESULTS COULD TRAIL CHRYSLER'S FOR THE PERIOD CHRYSLER BENEFITED DURING THE JANUARY TO MARCH PERIOD FROM SURGING SALES OF HIGHPROFIT JEEPS TRUCKS AND MINIVANS CHRYSLER SOLD 303263 TRUCKS AND MINIVANS DURING THE FIRST QUARTER OF 1993 UP 219 FROM A YEAR EARLIER BRISK SALES OF ITS NEW MIDSIZE FAMILY SEDANS KNOWN AS THE LH CARS ALSO BOOSTED PROFIT IN THE LATEST QUARTER THE COMPANY SAID CHRYSLER INCREASED ITS CASH RESERVES BY 15 BILLION DURING THE LATEST QUARTER TO 35 BILLION MAINLY BECAUSE IT RECEIVED 196 BILLION FROM THE SALE OF COMMON STOCK DURING THE PERIOD BUT CHRYSLER ALSO APPEARED TO MAKE STRIDES IN EFFICIENCY THAT BOLSTERED ITS BOTTOM LINE THE COMPANY DECREASED ITS TOTAL COSTS PER VEHICLE SOLD BY 9 TO 15517 A VEHICLE CHRYSLER CHAIRMAN ROBERT J EATON AND PRESIDENT ROBERT A LUTZ IN A JOINT STATEMENT SAID CHRYSLER WILL NOT ALLOW ITSELF TO RELAX AS A RESULT OF IMPROVEMENTS IN OPERATING PROFIT WE'RE CONTINUING TO ZERO IN ON ELIMINATING WASTE INCREASING QUALITY AND DRIVING THE CONCEPTS OF TEAMWORK AND CONTINUOUS IMPROVEMENT IN ALL FACETS OF OUR BUSINESS THE TWO EXECUTIVES SAID 9304200096 930420 YOUR MONEY MATTERS WILL YOUR DISABILITY POLICY HELP WHEN YOU'RE HELPLESS BY LYNN ASINOF STAFF REPORTER OF THE WALL STREET JOURNAL YOU'VE SPENT HOURS PORING OVER YOUR LIFE INSURANCE POLICY YOU'VE WRITTEN A WILL AND HAVE MONEY SET ASIDE FOR YOUR KIDS' COLLEGE EDUCATION BUT WHAT HAPPENS IF A CAR ACCIDENT LEAVES YOU PARTIALLY PARALYZED OR YOU'RE DISABLED BY DISEASE IF YOU DON'T REALLY KNOW YOU'RE NOT ALONE MOST PEOPLE PROBABLY HAVE DISABILITY INSURANCE THROUGH THEIR EMPLOYER BUT CHANCES ARE THEY'VE NEVER READ THE POLICY AND IF THEY DID THEY MIGHT NOT FEEL VERY SECURE VERY OFTEN ESPECIALLY WITH SMALLER EMPLOYERS THERE MAY ONLY BE A SHORTTERM DISABILITY PROGRAM IN PLACE FOR TWO OR FIVE YEARS SAYS VIRGINIA APPLEGARTH A BOSTON FINANCIAL ADVISER MOREOVER THE POLICY PROBABLY ISN'T PORTABLE IF THE WORKER CHANGES JOBS AND ANY BENEFITS WILL BE TAXED IF THE EMPLOYER BOUGHT THE POLICY SALES OF DISABILITY INSURANCE POLICIES TO INDIVIDUALS HAVE BEEN INCREASING AT A DOUBLEDIGIT RATE FOR THE PAST SEVERAL YEARS NOT ONLY ARE THE SELFEMPLOYED BUYING POLICIES BUT MANY PEOPLE COVERED BY AN EMPLOYER'S PLAN ARE SUPPLEMENTING IT ALTHOUGH IT IS MORE EXPENSIVE INDIVIDUAL DISABILITY INSURANCE IS THE ONLY WAY TO MAKE SURE YOU WILL HAVE DISABILITY INSURANCE THROUGHOUT YOUR WORKING LIFE SAYS MS APPLEGARTH SHE LEARNED THE VALUE OF DISABILITY INSURANCE WHEN A SERIOUS BACK INJURY LEFT HER BEDRIDDEN FOR FIVE YEARS HER RECOMMENDATION GET AS MUCH DISABILITY INSURANCE AS YOU CAN WHILE YOU CAN GET IT BUT BEFORE YOU START SHOPPING TAKE NOTE THE POLICIES CAN BE DIFFICULT TO UNDERSTAND AND THEY ARE EXPENSIVE COSTING 2 TO 3 OF YOUR ANNUAL INCOME OR MORE MOREOVER NOT EVERYONE CAN GET DISABILITY INSURANCE IF YOU WORK PART TIME HAVE JUST SET UP A NEW BUSINESS HAVE A HEART CONDITION OR ARE A CONSTRUCTION WORKER YOU MAY FIND SUCH POLICIES ARE PROHIBITIVELY EXPENSIVE IF AVAILABLE AT ALL IT ISN'T ALWAYS A MATTER OF WHO SHOULD BUY IT BUT WHO IS ABLE TO BUY IT SAYS PETER KATT A FEEONLY INSURANCE ADVISER IN WEST BLOOMFIELD MICH IF YOU CAN BUY IT WHAT SHOULD YOU BUY THE IMPULSE IS TO LOOK FOR THE CADILLAC POLICY THAT PROVIDES FULL COVERAGE QUICKLY ADVISERS HOWEVER SAY THIS IS A PLACE TO THINK LONG TERM IT'S MORE IMPORTANT TO HAVE A POLICY THAT COVERS YOU TO AGE 65 EVEN IF IT PROVIDES LOWER BENEFITS THAT TAKE LONGER TO BEGIN IT WOULD BE A BIGGER CATASTROPHE TO HAVE DISABILITY INSURANCE THAT ENDS AFTER FIVE YEARS THAN TO HAVE A LOWER LEVEL OF INCOME FOR THE REST OF YOUR WORKING LIFE SAYS MS APPLEGARTH TYPICALLY DISABILITY POLICIES REPLACE NO MORE THAN 60 OF LOST INCOME NOT INCLUDING BONUSES AND RETIREMENTPLAN CONTRIBUTIONS THE BENEFITS ARE TAXFREE IF THE POLICY IS PURCHASED BY THE INSURED THE LIMIT ON COVERAGE IS DESIGNED TO ENSURE THERE IS AN INCENTIVE TO RETURN TO WORK POLICY PREMIUMS AND TERMS ARE DETERMINED AS MUCH BY STABILITY AND THE WILL TO WORK AS THE ACTUAL RISK OF DISABILITY SAYS CHARLES SOULE PRESIDENT OF PAUL REVERE INSURANCE GROUP IN WORCESTER MASS THE FIRST THING TO LOOK FOR IS A POLICY THAT CAN'T BE CANCELED AND HAS LEVEL PREMIUMS TO AGE 65 THIS MEANS THE COMPANY CAN'T DROP YOU OR BOOST YOUR RATES ADVISERS ALSO RECOMMEND POLICIES WRITTEN BY COMPANIES THAT SPECIALIZE IN DISABILITY INSURANCE AND WORKING WITH BROKERS WHO HAVE A SPECIAL INTEREST IN THE FIELD THE LEADING COMPANIES IN THE DISABILITYINSURANCE FIELD INCLUDE PAUL REVERE PROVIDENT LIFE CAPITAL CORP'S PROVIDENT LIFE & ACCIDENT INSURANCE CO CHATTANOOGA TENN NORTHWESTERN MUTUAL LIFE INSURANCE CO MILWAUKEE AND UNUM CORP'S UNUM LIFE INSURANCE CO OF AMERICA PORTLAND MAINE THE GUTS OF ANY DISABILITY POLICY IS THE DEFINITION OF DISABILITY SOME POLICIES PAY BENEFITS IF YOU ARE UNABLE TO ENGAGE IN YOUR OCCUPATION OTHERS ONLY PAY BENEFITS IF YOU CAN'T ENGAGE IN ANY OCCUPATION UNDER THE LATTER A DOCTOR MAKING 120000 A YEAR WOULDN'T GET ANY BENEFITS IF A HEART CONDITION MADE IT NECESSARY TO TAKE A LESS STRESSFUL TEACHING POST THAT PAID ONLY 50000 RESIDUAL OR PARTIAL DISABILITY INSURANCE ADDRESSES PART OF THAT PROBLEM WHAT RESIDUAL DOES IS PROTECT YOUR ABILITY TO MAKE MONEY SAYS MR KATT IF A BACK INJURY REQUIRED A SWITCH TO PARTTIME WORK SOMEONE WITH RESIDUAL INSURANCE WOULD STILL GET BENEFITS BASED ON THE PERCENTAGE OF INCOME LOST BUT OTHER ADVISERS FEEL THAT OWNOCCUPATION COVERAGE IS AN IMPORTANT PART OF ANY PACKAGE NOTING THAT EVEN IF PEOPLE HAVE THEIR INCOME REPLACED THEY COULD BE FORCED INTO JOBS THEY DON'T WANT IN THE REAL WORLD ATTORNEYS PHYSICIANS ARCHITECTS AND SENIOR MANAGEMENT EXECUTIVES ALMOST ALWAYS GO FOR OWNOCCUPATION COVERAGE WHEN GIVEN THE CHOICE SAYS INSURANCE ADVISER ALLAN CHECKOWAY OF DISABILITY SERVICES GROUP OF NEWTON MASS THE BIGGEST VARIABLE IN BUYING DISABILITY INSURANCE MAY BE THE WAITING PERIOD IF YOU HAVE SIX TO 12 MONTHS OF FUNDS TO CARRY YOU THROUGH THE EARLY STAGES OF A DISABILITY YOU CAN SAVE ON PREMIUMS BY PUTTING OFF THE START OF BENEFITS FOR 90 180 OR EVEN 365 DAYS OTHER OPTIONS YOU CAN PURCHASE INCLUDE A COSTOFLIVING ADJUSTMENT WHICH IS EXPENSIVE BUT IMPORTANT ADVISERS SAY PEOPLE WHO ARE JUST STARTING OUT AND EXPECT THEIR INCOME TO GROW MAY WANT TO PURCHASE THE RIGHT TO BUY ADDITIONAL INSURANCE LATER REGARDLESS OF HEALTH IF YOU ARE COVERED BY A CORPORATE GROUP DISABILITY POLICY YOU MAY BE LIMITED IN WHAT YOU CAN BUY SINCE INSURERS WON'T FULLY REPLACE LOST INCOME BUT SUPPLEMENTAL POLICIES CAN BOOST YOUR COVERAGE TO AS MUCH AS 80 OF INCOME OFTEN WITH BETTER TERMS THAN THE UNDERLYING GROUP POLICY INDEED PEOPLE WHO ARE RELYING ON THEIR EMPLOYER'S GROUP COVERAGE SHOULD REALIZE THAT AFTER TAXES THEIR 60 REPLACEMENT COVERAGE MAY AMOUNT TO ONLY 39 AND THAT JUST MAY NOT BE ENOUGH SAYS MR CHECKOWAY INSURERS ALSO SELL WRAPAROUND DISABILITY POLICIES THAT PLUG MANY OF THE HOLES IN GROUP COVERAGE SUCH AS LACK OF RESIDUAL OR OWNOCCUPATION COVERAGE BUT MR CHECKOWAY CAUTIONS THAT EVEN THESE POLICIES CAN'T FILL EVERY HOLE STILL PARTTIME WORKERS OR PEOPLE WHO HAVE JUST STARTED THEIR OWN BUSINESSES MAY BE OUT OF LUCK VIRTUALLY NO COMPANY WILL INSURE SOMEONE WHO WORKS LESS THAN 26 TO 30 HOURS REASONING THAT THERE IS NO REAL INCENTIVE TO RETURN TO WORK IF DISABLED AND IF YOU ARE JUST STARTING A BUSINESS THERE IS NO INCOME STREAM TO INSURE BUT DON'T GIVE UP MS APPLEGARTH SAYS MANY CAN GET GROUP COVERAGE THROUGH ALUMNI GROUPS AND PROFESSIONAL ASSOCIATIONS THE COVERAGE MAY NOT BE THE MOST COMPREHENSIVE BUT IT'S A GOOD PLACE TO START TYPICAL YEARLY COST OF A NONCANCELABLE ANNUALLY RENEWABLE INDIVIDUAL DISABILITY POLICY FOR A 40YEAROLD WHO EARNS 60000 A YEAR AND WANTS TO BE ABLE TO REPLACE 60 OF LOST INCOME TO AGE 65 PREMIUMS INCLUDE OWNOCCUPATION COVERAGE WHICH PAYS BENEFITS IF THE INSURED IS UNABLE TO ENGAGE IN HIS OR HER OWN OCCUPATION MONTH OF BENEFITS 2630 HOURS A WEEK 9304200095 930420 BUSINESS BRIEF MCLOUTH STEEL MICHIGAN FIRM MOVES UP 5 PRICE INCREASE TO MAY 1 MCLOUTH STEEL CITING INCREASED DEMAND AND THE NEED FOR REVENUE SAID IT MOVED UP A 5 PRICE INCREASE ON HOT AND COLDROLLED STEEL TO MAY 1 FROM JULY 1 THE TRENTON MICH STEELMAKER IS BELIEVED TO BE THE FIRST IN THE INDUSTRY TO ANNOUNCE A MAY PRICE BOOST WE'RE BUCKING THE INDUSTRY BUT WE'RE NOT DOING IT OUT OF ARROGANCE SAID LAWRENCE HALL EXECUTIVE VICE PRESIDENT WE'RE DOING IT OUT OF NEED THE MOVE ALSO IS A SIGN OF INCREASED DEMAND IN A MARKET TIGHTENED BY PRELIMINARY FINDINGS AGAINST FOREIGN COUNTRIES IN ANTIDUMPING TRADE CASES FILED BY US STEELMAKERS 9304200094 930420 INTERNATIONAL BRIEF RTZ CORP SILENCE IS KEPT OVER REPORT ON INTENTION TO SELL PILLAR RTZ CORP DECLINED TO CONFIRM OR DENY A BRITISH NEWSPAPER REPORT THAT IT IS SEEKING A BUYER FOR ITS PILLAR ENGINEERING LTD BUILDING AND ELECTRICAL PRODUCTS UNIT IT IS THE POLICY OF RTZ NOT TO COMMENT ON SPECULATION THAT APPEARS IN THE PRESS A SPOKESWOMAN FOR THE BRITISH MINING CONCERN SAID ACCORDING TO THE REPORT IN THE SUNDAY TIMES NEWSPAPER RTZ IS SEEKING AROUND 750 MILLION 114 BILLION FOR THE BUSINESS PROCEEDS FROM THE SALE WOULD BE USED TO DEVELOP ITS CORE MINING OPERATIONS PILLAR ACCOUNTS FOR ABOUT 4 OF RTZ'S OVERALL BUSINESS 9304200092 930420 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FEDERAL HOME LOAN BANKS 102 MILLION OF FEDERAL HOME LOAN BANKS NOTES DUE APRIL 29 2003 PRICED AT PAR TO YIELD 638 ACCORDING TO MCM CORPORATEWATCH THE ISSUE NONCALLABLE FOR THREE YEARS WAS WON BY DEALERS LED BY MERRILL LYNCH & CO THE ISSUE WAS PRICED AT A SPREAD OF 051 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE NEWS AMERICA HOLDINGS INC 250 MILLION OF DEBENTURES DUE APRIL 26 2023 PRICED AS 8 7/8S AT 99088 TO YIELD 8963 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 22 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND RATED BA2 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO NEWS AMERICA HOLDINGS IS A UNIT OF NEWS CORP UPJOHN CO 200 MILLION OF NOTES DUE APRIL 15 2000 PRICED AS 5 7/8 AT 99901 TO YIELD 5892 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 04 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE RATED DOUBLEA3 BY MOODY'S AND DOUBLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO EAST BAY MUNICIPAL UTILITY DISTRICT OF CALIFORNIA 85 MILLION SERIES 1993 SECURITIES PRICED BY A MORGAN STANLEY & CO GROUP INCLUDED IN THE OFFERING ARE 296 MILLION WASTEWATER SYSTEM SUBORDINATED REFUNDING REVENUE BONDS WHICH ARE PRICED TO YIELD FROM 275 IN 1994 TO 545 IN 2007 THERE ARE ALSO 278 MILLION YIELD CURVE NOTES AND 278 MILLION AUCTION RATE NOTES THOSE DERIVATIVES WHICH HAVE FINAL MATURITIES OF 2013 AND 2020 AREN'T FORMALLY REOFFERED TO INVESTORS THE ENTIRE ISSUE IS INSURED BY AMBAC INDEMNITY CORP AND CARRIES TRIPLEA RATINGS FROM MOODY'S AND S&P GEORGIA MUNICIPAL ELECTRIC AUTHORITY 1765 MILLION OFFERING PRICED BY A FIRST BOSTON CORP GROUP INCLUDED IN THE ISSUE ARE THE FOLLOWING 457 MILLION SERIES BB POWER REVENUE BONDS WHICH ARE PRICED TO YIELD FROM 45 IN 1998 TO 578 IN 2019 447 MILLION SERIES 1993B GENERAL POWER REVENUE BONDS THAT ARE TO YIELD FROM 485 IN 2000 TO 578 IN 2019 AND 861 MILLION SERIES 1993C GENERAL POWER REVENUE BONDS WHICH ARE ALSO PRICED TO YIELD FROM 485 IN 2000 TO 578 IN 2019 THE BONDS WHICH ARE ALL NONCALLABLE HAVE BEEN RATED SINGLEA1 BY MOODY'S AND DOUBLEAMINUS BY S&P WACO TEXAS 32 MILLION OFFERING OF SECURITIES THOUGH A GROUP LED BY FIRST SOUTHWEST CO THIS SESSION THE ISSUE INCLUDES 118 MILLION 1993 TAX AND REVENUE CERTIFICATES OF OBLIGATION WHICH ARE PRICED TO YIELD FROM 35 IN 1995 TO 57 IN 201113 THERE ARE ALSO 205 MILLION 1993 GENERAL OBLIGATION REFUNDING BONDS WHICH HAVE YIELDS THAT RANGE FROM 26 IN 1994 TO 565 IN 2010 AMBAC INDEMNITY IS INSURING THE ISSUE AND THE SECURITIES CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P TIG HOLDINGS INC INITIAL OFFERING OF 44225 MILLION COMMON SHARES PRICED AT 22625 EACH THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO REPUBLIC OF AUSTRIA SOVEREIGN 1 BILLION DUTCH GUILDERS OF 65 EUROBONDS DUE MAY 7 1999 AT ISSUE PRICE 10085 VIA ABN AMRO BANK REOFFERED AT 10005 TO YIELD 649 ANNUAL SPREAD EIGHT BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN FEES 1 EUROFIMA SUPRANATIONAL 300 BILLION LIRE OF 10 3/4 EUROBONDS DUE MAY 19 2003 AT ISSUE PRICE 10180 VIA BANCA NAZIONLE DEL LAVORO YIELD 1026 AT 99925 THE BREAKEVEN PRICE FOR COMANAGING BANKS AFTER DEDUCTING FULL COMMISSIONS FEES 1 7/8 COMPAGNIE FINANCIERE DE CIC ET L'UNION EUROPEENE FRANCE 250 MILLION OF FLOATING RATE EURONOTES DUE MAY 21 1996 AT ISSUE AND REOFFER PRICE 99875 VIA MERRILL LYNCH INTERNATIONAL & CO INTEREST FLOATS AT 20 BASIS POINTS ABOVE THREEMONTH LONDON INTERBANK OFFERED RATE FOR US DOLLARS FEES 015 ZLAENDERBANK BANK AUSTRIA AG AUSTRIA 150 MILLION OF SUBORDINATED COLLARED FLOATING RATE EURONOTES DUE MAY 14 2003 VIA LEHMAN BROTHERS INTERNATIONAL LTD INTEREST FLOATS AT 1/4 POINT US DOLLAR LIBOR SUBJECT TO 5 MINIMUM 8 MAXIMUM ISSUE PRICE PAR FEES 1/2 FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY GREENWICH CAPITAL MARKETS INC THE OFFERING SERIES 1526 IS BACKED BY 65 30YEAR MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 72 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 359 MONTHS 9304200091 930420 WHO'S NEWS DEPRENYL FOUNDER MORTON SHULMAN IS STEPPING DOWN BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO DEPRENYL RESEARCH LTD SAID ITS FOUNDER CONTROVERSIAL PHYSICIAN MORTON SHULMAN IS RETIRING AS COCHAIRMAN AND AS A DIRECTOR OF THE PHARMACEUTICAL CONCERN FOR SOME OBSERVERS THE ANNOUNCEMENT THAT DR SHULMAN WILL SEVER HIS REMAINING TIES WITH DEPRENYL IS THE FINAL SIGN THAT THE COMPANY WILL EMERGE AS A CONVENTIONALLY MANAGED PHARMACEUTICAL DEVELOPMENT AND MARKETING ENTERPRISE DR SHULMAN 68 YEARS OLD WAS RENOWNED FOR HIS UNCONVENTIONAL PROMOTION OF DEPRENYL'S PRODUCTS AND ITS STOCK SUCH AS HIS URGING SHAREHOLDERS AT AN ANNUAL MEETING TO SIGN UP AS GUINEA PIGS FOR THE TESTING OF AN EXPERIMENTAL ALZHEIMER'S DRUG WHICH HAVE HELPED DAMP ENTHUSIASM OF INSTITUTIONAL INVESTORS AND PENSION FUND MANAGERS FOR THE STOCK IN A STRANGE WAY I THINK DR SHULMAN HAS OUTLIVED HIS USEFULNESS TO THE COMPANY SAID GEORGE MITTELMAN A BROKER WITH LEVESQUE BEAUBIEN GEOFFRION IN TORONTO NOW THAT DEPRENYL CAN STAND ON ITS OWN TWO FEET MORTY'S DEPARTURE IS PROBABLY A POSITIVE DR SHULMAN FOUNDED DEPRENYL IN 1987 TO MARKET IN CANADA A TREATMENT FOR PARKINSON'S DISEASE DEVELOPED IN HUNGARY HE USED HIMSELF AS AN ADVERTISEMENT BEFORE TAKING THE DRUG HE HAD CONTEMPLATED SUICIDE HAVING BEEN VIRTUALLY IMMOBILIZED BY THE EFFECTS OF THE DISEASE SINCE THEN DEPRENYL HAS MOVED ON TO DEVELOP EXPERIMENTAL NEW TREATMENTS FOR ALZHEIMER'S DISEASE OSTEOPOROSIS AND SKIN CANCERS ALL OF WHICH HAVE BEEN ENTHUSIASTICALLY PROMOTED BY DR SHULMAN BUT DR SHULMAN WHOSE EARLIER CAREERS HAVE INCLUDED STINTS AS AN INVESTMENT ADVISER MEDIA PERSONALITY AUTHOR POLITICIAN AND CRUSADING CORONER DOESN'T PLAN TO ABANDON HIS LATEST ROLE AS ENTREPRENEUR AND CORPORATE EXECUTIVE HE SAID HE HAS INCORPORATED A NEW COMPANY SAFETY CORP AND IS WORKING WITH AN ANONYMOUS INVESTOR AND THREE SALARIED SCIENTISTS ON NEW DRUGS FOR PREVIOUSLY UNTREATABLE DISEASES HE DECLINED TO GIVE MORE DETAILS DR SHULMAN STEPPED DOWN AS CHIEF EXECUTIVE OFFICER OF DEPRENYL LAST SEPTEMBER ONLY DAYS AFTER THE COMPANY REPORTED A SIGNIFICANT PAPER LOSS ON SOME OF ITS CORPORATE INVESTMENTS AND IN THE WAKE OF INVESTOR CRITICISM OF ACTIVE CURRENCY TRADING HE UNDERTOOK ON BEHALF OF DEPRENYL HIS SON GEOFFREY FORMER DEPRENYL COCHAIRMAN WILL CONTINUE AS CHAIRMAN CONCERN OVER THE IMPORTANCE OF INVESTMENT INCOME AND CURRENCY HEDGING PROFITS TO DEPRENYL'S FINANCIAL HEALTH TOGETHER WITH DEBATE OVER THE EFFICACY OF SOME OF THE DRUGS IT PLANS TO MARKET HAS DRIVEN DEPRENYL'S STOCK DOWNWARD IN THE LAST YEAR IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY DEPRENYL CLOSED AT 28125 DOWN MORE THAN SIX CENTS COMPARED WITH A 52WEEK HIGH OF 13125 A SHARE 9304200090 930420 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BEST PROGRAMS INC AN INITIAL OFFERING OF 2175000 COMMON SHARES VIA FURMAN SELZ INC AND VOLPE WELTY & CO HOME WAREHOUSE INC AN OFFERING OF 22 MILLION COMMON SHARES VIA WILLIAM BLAIR & CO IMCLONE SYSTEMS INC AN OFFERING OF 15 MILLION COMMON SHARES VIA SMITH BARNEY HARRIS UPHAM & CO ROBERTSON STEPHENS & CO AND SBCI SWISS BANK CORP MITCHELL ENERGY & DEVELOPMENT CORP AN OFFERING OF 45 MILLION COMMON SHARES VIA GOLDMAN SACHS & CO FIRST BOSTON CORP AND MERRILL LYNCH & CO PRIMADONNA RESORTS INC AN INITIAL OFFERING OF 58 MILLION COMMON SHARES VIA SALOMON BROTHERS INC AND MONTGOMERY SECURITIES SIGNAL TECHNOLOGY CORP AN INITIAL OFFERING OF 17 MILLION COMMON SHARES VIA OPPENHEIMER & CO INC 9304200089 930420 INTERNATIONAL ITALIANS OVERWHELMINGLY SUPPORT AN OVERHAUL OF ELECTORAL SYSTEM WITH SCANDAL AS BACKDROP TURNOUT WAS STRONG PREMIER IS SET TO QUIT BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN IN AN INDICTMENT OF 45 YEARS OF PARTYDOMINATED POLITICS ITALIANS VOTED OVERWHELMINGLY FOR POLITICAL CHANGE IN EIGHT REFERENDUMS ON INSTITUTIONAL REFORM OF THEIR SYSTEM IN RESPONSE TO A VOTE THAT FAR SURPASSED PROJECTIONS PARLIAMENT IS EXPECTED TO MEET AS EARLY AS THIS WEEK TO DISCUSS FORMATION OF A NEW GOVERNMENT WITH A MANDATE TO LEGISLATE FURTHER REFORM OF THE COUNTRY'S POLITICAL INSTITUTIONS ACCORDING TO PRELIMINARY RESULTS ITALIANS VOTED 82 IN THE MOST SIGNFICANT REFERENDUM TO ABOLISH THE COUNTRY'S SYSTEM OF PROPORTIONAL REPRESENTATION FOR THREEQUARTERS OF THE SENATE REPLACING IT WITH A USSTYLE MAJORITY SYSTEM PASSAGE OF THE PROPOSAL IS WIDELY SEEN AS THE FIRST STEP IN OVERHAULING ITALY'S FRACTIOUS POLITICAL SYSTEM WHICH HAS BEEN BADLY DISCREDITED BY CORRUPTION SCANDALS THAT HAVE BEEN UNFOLDING FOR MORE THAN A YEAR THE SCANDALS MAINLY HAVE INVOLVED ALLEGATIONS OF SYSTEMATIC KICKBACKS TO POLITICIANS IN RETURN FOR GOVERNMENT CONTRACTS AND MORE RECENTLY HAVE INVOLVED ALLEGATIONS OF LINKS TO THE MAFIA TODAY ITALY HAS CHANGED IT'S A VICTORY OF THE ITALIAN PEOPLE WHO BY AN OVERWHELMING MAJORITY HAVE BUILT THE FOUNDATIONS OF A NEW REPUBLIC THE REPUBLIC OF THE PEOPLE SAID A JUBILANT MARIO SEGNI THE LEADER OF THE REFERENDUM CAMPAIGN PRIME MINISTER GIULIANO AMATO MET WITH PRESIDENT OSCAR LUIGI SCALFARO EVEN BEFORE ELECTION RESULTS WERE IN YESTERDAY AFTERNOON TO EXPLAIN THE REASONS WHY HE FEELS HIS GOVERNMENT'S TERM IS EXPIRED THE PRESIDENT'S OFFICE SAID IN A STATEMENT MR AMATO WILL MEET WITH THE LEADERS OF POLITICAL PARTIES THIS MORNING WHO WILL THEN SCHEDULE A DEBATE IN THE CHAMBER OF DEPUTIES ON THE FATE OF HIS GOVERNMENT MR AMATO HAS OFFERED BEFORE TO STEP DOWN AS FIVE MEMBERS OF HIS CABINET WERE FORCED TO RESIGN AMID THE SCANDALS AND COALITION MEMBERS CALLED FOR BROADERBASED POLITICAL SUPPORT HOWEVER MR SCALFARO HAS REPEATEDLY ASKED HIM TO REMAIN AT LEAST UNTIL THE REFERENDUM WAS HELD PARTY LEADERS HAVE BEEN DISCUSSING THE POSSIBILITY OF HOLDING OFF ON NEW ELECTIONS UNTIL THEY FORM AN INSTITUTIONAL GOVERNMENT WITH THE TASK OF LEGISLATING REFORM FOR THE ITALIAN PARLIAMENT'S LOWER HOUSE THE CHAMBER OF DEPUTIES THE WEEKEND REFERENDUM APPLIED ONLY TO THE SENATE OR UPPER HOUSE AS WITH THE SENATE REFORM FOR THE CHAMBER OF DEPUTIES WOULD SEEK TO ADOPT A MAJORITYELECTION SYSTEM ABANDONING THE ONE THAT APPORTIONS SEATS ACCORDING TO THE PERCENTAGE OF VOTES RECEIVED BY EACH PARTY ITALY HAS HAD 50 GOVERNMENTS SINCE THE END OF WORLD WAR II WITH THE RAPID TURNOVER RESULTING FROM THE WEAK COALITIONS THAT CAME FROM THE ELECTION SYSTEM MR AMATO WHO DESPITE HIS GOVERNMENT'S DIFFICULTIES HAS HIMSELF REMAINED RELATIVELY UNSCATHED BY THE CORRUPTION SCANDALS MAY BE ASKED TO HEAD THIS NEW GOVERNMENT POLITICAL LEADERS SPECULATE GIORGIO NAPOLITANO THE LEADER OF THE CHAMBER OF DEPUTIES ALSO HAS BEEN MENTIONED AS A POSSIBLE PRIME MINISTER IN ADDITION TO HAVING TO WIN BACK THE CONFIDENCE OF THE PUBLIC ITALY'S NEXT GOVERNMENT MUST GRAPPLE WITH SEVERAL SERIOUS ECONOMIC ISSUES IMMEDIATELY INCLUDING SPEEDING UP THE COUNTRY'S STALLED PRIVATIZATION PROGRAM AND TACKLING A GROWING UNEMPLOYMENT PROBLEM THE QUESTION NOW IS HOW AND WHEN PARLIAMENT WILL INTERPRET THE REFERENDUM RESULTS INTO ELECTORAL REFORM THE REFERENDUMS THEMSELVES ONLY ABOLISH EXISTING LAWS PARLIAMENT WILL HAVE TO MAKE NEW LEGISLATIVE PROPOSALS TO TURN THE RESULTS INTO LAW FOR NEARLY A YEAR PARLIAMENT HAS BEEN WORKING TO NO AVAIL ON ELECTORAL REFORM IN A SPECIAL COMMITTEE THE MANDATE IS THERE NOW WE HAVE TO SEE IF PARLIAMENT WILL DO ANYTHING ABOUT IT SAID INDRO MONTANELLI EDITOR OF MILAN'S IL GIORNALE THE POLITICAL FORCES WILL TRY TO BUY TIME WARNED UMBERTO BOSSI LEADER OF THE NORTHERN LEAGUE PARTY WHO IS IN FAVOR OF CALLING ELECTIONS WITHIN TWO MONTHS BUT LEADERS OF THE RULING COALITION PARTY VOWED YESTERDAY TO ENACT REFORMS QUICKLY ITALIANS HAVE ASKED FOR CHANGE WE MUST GIVE IT TO THEM SAID GIORGIO BENVENUTO SECRETARY OF THE SOCIALIST PARTY WHICH HAS BEEN SEVERELY DAMAGED BY THE CORRUPTION SCANDALS MEANWHILE VOTERS EXPRESSED HOPE TINGED WITH CAUTION AT THE RESULTS OF THE REFERENDUMS THIS IS A DEMONSTRATION THAT PEOPLE WON'T ACCEPT THE CURRENT SITUATION SAID EZIO MACCALLI A 35YEAROLD RACE CAR DRIVER FROM MONZA BUT IT'S DIFFICULT TO BE OPTIMISTIC IN ITALY THE VOTE IS CLEAR BUT WE'LL HAVE TO SEE WHAT PARLIAMENT DOES WITH IT ITALIANS ALSO VOTED IN FAVOR OF ABOLISHING PUBLIC FINANCING FOR POLITICAL PARTIES ELIMINATING THE MINISTRIES OF AGRICULTURE AND TOURISM AND ALLOWING THE TREASURY MINISTER TO APPOINT HEADS OF THE STATEOWNED SAVINGS AND LOAN INSTITUTIONS 9304200088 930420 REVIEW & OUTLOOK EDITORIAL CLINTON'S TRADE CONFUSIONS THE MESSAGE THAT BILL CLINTON DELIVERED TO JAPAN'S PRIME MINISTER KIICHI MIYAZAWA LAST WEEKEND WAS CLEAR UNLESS TOKYO OPENS MARKETS IN WAYS WASHINGTON PRESCRIBES THE US WILL BE BETTER OFF BEHIND ADDITIONAL TRADE BARRIERS OF ITS OWN MR CLINTON'S DOCTRINE WHICH IMPLICITLY REJECTS THE PRINCIPLE OF FREE TRADE IS WRONG AND DANGEROUS SUCH A TITFORTAT APPROACH INVOLVING THE TAXING OF US CONSUMERS AND ENGAGING IN A MANAGED TRADE THAT WOULD SEAL OFF OPPORTUNITIES FOR THE MOST COMPETITIVE AMERICAN FIRMS WOULD DAMAGE THE AMERICAN ECONOMY MORE THAN THAT OF ANY OTHER NATION IT ALSO WOULD INVITE TRADE WARFARE BY GAMBLING WITH THE FUTURE OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE GATT THE WORLD'S BROADLY ACCEPTED BODY OF RULES FOR SETTLING TRADE DISPUTES TO BE SURE THE PRESIDENT TOLD MR MIYAZAWA THAT HE THINKS THE GATT IS IMPORTANT HIS TRADE BULLDOG MICKEY KANTOR MADE A SHOW OF GATT SUPPORT WHEN HE TRAVELED TO EUROPE EARLY THIS MONTH OSTENSIBLY TO PATCH UP DIFFERENCES AND REENERGIZE THE URUGUAY ROUND HIS ACT DIDN'T PLAY WELL IN BRUSSELS BUT HE CAN SAY HE TRIED THE PROBLEM IS THAT THE CLINTONITES WANT A TRADE POLICY THAT IS BOTH MULTILATERAL AND UNILATERAL WHEN IT SUITS THEM THEY WILL PURSUE FREE TRADE THROUGH MULTILATERAL CHANNELS BUT ALSO WHEN IT SUITS THEM THEY WILL DEAL WITH SPECIFIC TRADE DISPUTES ON A COUNTRYBYCOUNTRY BASIS WHAT AMAZES US MOST ABOUT THIS COURSE IS THAT ITS PRACTITIONERS ARE SO BLIND TO THE CONSEQUENCES ASSUMING THAT WASHINGTON'S OBJECTIVE IN BILATERAL DEALS IS TO REDUCE AMERICAN TRADE DEFICITS IT FOLLOWS THAT US TRADING PARTNERS WILL BE PRODDED TO BUY MORE FROM AMERICA IF THEY DO THEY WILL BUY LESS OF SOME OTHER COUNTRY'S EXPORTS AND THAT COUNTRY WILL HAVE LESS TO SPEND ON IMPORTS INCLUDING IMPORTS FROM THE US IN THE END MR CLINTON WILL SUCCEED ONLY IN REALLOCATING AMERICA'S TRADE DEFICITS AMONG ITS TRADING PARTNERS NOT IN REDUCING THEM THE ECONOMIC COST WILL BE LARGE BECAUSE GUIDING TRADE THROUGH ADMINISTRATIVE FIAT IS FUNDAMENTALLY INEFFICIENT IF THE CLINTONITES REALLY WANT TO REDUCE THE TRADE DEFICIT THEY SHOULD CUT THE US GOVERNMENT'S CAPITAL IMPORTS BUT THAT ENTAILS A REDUCTION OF FEDERAL SPENDING SOMETHING THEY ARE UNWILLING TO DO ADMINISTRATIVE EFFORTS COULD BE PROFITABLY RATHER THAN WASTEFULLY EMPLOYED HOWEVER IF MR CLINTON WOULD DIRECT THEM TOWARD EXPANDING RATHER THAN CURTAILING TRADE FREEDOM A GREAT OPPORTUNITY NOW EXISTS TO COMPLETE THE NAFTA AGREEMENT AND THEN USE IT AS THE HUB FOR A FAR GRANDER PROJECT A PACIFIC BASIN FREE TRADE AREA A SUCCESS HERE WOULD HAVE A PROFOUND GLOBAL EFFECT NAFTA AND ASIA TOGETHER ACCOUNT FOR MORE THAN HALF THE WORLD'S GROSS NATIONAL PRODUCT AT THE CORE OF THE TRANSPACIFIC UNION WOULD BE THE US AND JAPAN WORKING TO EXPLOIT THE COMPARATIVE ADVANTAGES OF COUNTRIES RANGING FROM MEXICO TO TAIWAN TO CHILE SUCH A PROJECT COULD DICTATE A WORLD OF FREE TRADE AND THE RESTORATION OF ECONOMIC GROWTH MR CLINTON REPORTEDLY ENJOYS HEARING HIMSELF COMPARED WITH JOHN F KENNEDY JUST TO SEE IF THE COMPARISON FITS HE MIGHT WANT TO REVIEW WHAT CAME TO BE CALLED THE KENNEDY ROUND OF GATT NEGOTIATIONS WHICH SIGNIFICANTLY REDUCED TRADE BARRIERS WORLDWIDE AND HELPED TOUCH OFF AN ERA OF RAPID GROWTH IN TRADE AND ECONOMIC DEVELOPMENT IF MR CLINTON WANTS TO BE LIKENED TO JOHN KENNEDY HE HAD BETTER MAKE UP HIS MIND SOON BEFORE HE TRAVELS TOO FAR DOWN THE CONFUSED ROAD HE'S ON NOW 9304200087 930420 BUSINESS BRIEF SPX CORP FIRM SEES FIRSTQUARTER NET AT FIVE TO 10 CENTS A SHARE SPX CORP IS COMFORTABLE WITH ANALYST FORECASTS THAT THE COMPANY WILL POST FIRSTQUARTER NET INCOME RANGING BETWEEN FIVE CENTS A SHARE AND 10 CENTS A SHARE WHEN IT RELEASES ITS EARNINGS TODAY THAT WOULD COMPARE WITH A LOSS OF 37 MILLION OR 27 CENTS A SHARE FOR THE YEAREARLIER QUARTER THE MUSKEGON MICH AUTOPARTS MAKER TOOK A CHARGE OF 57 MILLION OR 41 CENTS SHARE RESULTING FROM THE CUMULATIVE EFFECT OF ACCOUNTING CHANGES WE HAD A VERY STRONG YEAR LAST YEAR IN PART DUE TO STRONG DEMAND FOR REFRIGERANT RECOVERY AND RECYCLING EQUIPMENT AN SPX SPOKESMAN SAID THOSE ORDERS WILL NOT BE REPEATED THIS YEAR WHICH WILL TAKE OUT 40 MILLION IN REVENUE FOR US FOR ALL OF 1993 9304200086 930420 NISSAN TO LAY OFF 115 EMPLOYEES AT US SALES ARM BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL NISSAN MOTOR CORP'S US SALES ARM UNDER PRESSURE FROM ITS STRUGGLING PARENT TO BOOST PROFIT WILL LAY OFF 115 WORKERS IN A FURTHER MOVE AWAY FROM THE JAPANESE TRADITION OF JOB SECURITY THIS IS THE FIRST TIME NISSAN HAS DISMISSED A LARGE NUMBER OF WORKERS IN THE US AND A RARE MOVE FOR A JAPANESE AUTO MAKER THE DISMISSALS HIGHLIGHT THE HARD TIMES ALL JAPANESE AUTO MAKERS FACE AS SLUGGISH HOMEMARKET SALES AND THE WEAK DOLLAR BATTER PROFITS THEY ARE TRYING TO REDUCE OVERHEAD IN ALL MAJOR MARKETS SAID CHRISTOPHER CEDERGREN AUTO ANALYST AT AUTOPACIFIC GROUP INC A CALIFORNIA CONSULTING FIRM THERE WILL BE MORE ANNOUNCEMENTS OF LAYOFFS FROM OTHER JAPANESE AUTO MAKERS OVER THE NEXT YEAR TO 18 MONTHS HE PREDICTED THE RECENT SURGE IN THE VALUE OF THE YEN AGAINST THE DOLLAR IS TURNING UP THE PRESSURE ON NISSAN AND OTHER JAPANESE AUTO MAKERS BECAUSE IT SLASHES THE PROFITABILITY OF JAPANESE VEHICLES SOLD IN THE US SAID KOJI ENDO SG WARBURG & CO'S AUTO ANALYST AT THE CURRENT EXCHANGE RATE NO ONE CAN MAKE MONEY ON EXPORTS FROM JAPAN MR ENDO SAID THE RESULT NISSAN'S DISMISSALS COULD BE THE BEGINNING OF A BROADER ROUND OF CUTBACKS IN THE US AND IN JAPAN NISSAN SAID LATE YESTERDAY THAT THE COMPANY PLACED 115 EMPLOYEES OR ALMOST 5 OF ITS 2465 US MARKETING EMPLOYEES ON INDEFINITE LAYOFF LAST YEAR NISSAN LAID OFF ABOUT 10 WORKERS AS IT WAS RESTRUCTURING ITS US OPERATIONS TO OPERATE MORE INDEPENDENTLY FROM ITS PARENT COMPANY IN JAPAN THE DISMISSALS CAME LESS THAN A WEEK AFTER THOMAS D MIGNANELLI'S ABRUPT RESIGNATION AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NISSAN'S US SALES ARM COMPANY OFFICIALS SAY MR MIGNANELLI WAS FORCED OUT AS PART OF A SHAKEUP AIMED AT BOLSTERING PROFIT A DIFFICULT WORLDWIDE BUSINESS CLIMATE HAS IMPACTED THE COMPANY'S OPERATIONS AND MAKES IT NECESSARY TO REDUCE OPERATING EXPENSES NISSAN SAID IN A STATEMENT ANNOUNCING YESTERDAY'S JOB CUTS AS PART OF THE COSTCUTTING EFFORT NISSAN SAID IT MERGED THE SALES AND MARKETING STAFFS OF ITS NISSAN AND INFINITI DIVISIONS THE AUTO MAKER SAID IT WANTED TO MINIMIZE DUPLICATION BETWEEN THE TWO DIVISIONS JULES CLAVADETSHER FORMERLY GENERAL MARKETING MANAGER FOR NISSAN WILL OVERSEE SALES FOR NISSAN AND INFINITI AND WILL REPORT TO EARL HESTERBERG VICE PRESIDENT AND GENERAL MANAGER OF NISSAN DIVISION AND WILLIAM BRUCE VICE PRESIDENT AND GENERAL MANAGER OF THE INFINITI LUXURY CAR DIVISION UKI KITAHORA STAFF VICE PRESIDENT FOR NISSAN CORPORATE IS THE ACTING DIRECTOR OF MARKETING FOR NISSAN AND INFINITI A NISSAN SPOKESMAN SAID NISSAN TOOK THE FIRST STEP TOWARD STREAMLINING NISSAN AND INFINITI OPERATIONS LAST YEAR WHEN IT CONSOLIDATED ITS ADVERTISING ACCOUNT UNDER ONE AGENCY CHIAT/DAY/MOJO NISSAN'S VENICE CALIF AD AGENCY WON THE INFINITI ACCOUNT FROM BOSTON AGENCY HILL HOLLIDAY CONNORS COSMOPULOS 9304200085 930420 EARNINGS EDGED DOWN AT PRIMERICA FELL 13 AT TRAVELERS IN 1ST QUARTER BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL DESPITE SURGING OPERATING PROFITS BOTH PRIMERICA CORP AND TRAVELERS CORP ITS AFFILIATE REPORTED DECLINES IN FIRSTQUARTER NET INCOME LAST YEAR'S RESULTS INCLUDED LARGE NONRECURRING GAINS PRIMERICA EARNED 1903 MILLION OR 109 A SHARE IN THE PERIOD DOWN SLIGHTLY FROM YEAREARLIER LEVELS OF 1921 MILLION OR 113 A SHARE LAST YEAR'S NET INCOME INCLUDED ONETIME GAINS ON ASSET SALES EARNINGS ALSO INCLUDED FOR THE FIRST TIME RESULTS FROM PRIMERICA'S 27 OWNERSHIP STAKE IN TRAVELERS BASED IN HARTFORD CONN THE INVESTMENT CONTRIBUTED 321 MILLION TO PRIMERICA'S PROFIT IN THE PERIOD NET INCOME AT TRAVELERS FELL 13 TO 195 MILLION OR 125 A SHARE FROM 224 MILLION OR 212 A SHARE LAST YEAR'S FIGURE WAS RESTATED TO INCLUDE A 170 MILLION ONETIME GAIN FROM NEW ACCOUNTING RULES ON INCOME TAXES AND EMPLOYEE BENEFITS REVENUE AT NEW YORKBASED PRIMERICA FELL ABOUT 2 TO 13 BILLION FROM 133 BILLION BUT OPERATING PROFIT BUOYED BY RECORD RESULTS AT ITS SMITH BARNEY HARRIS UPHAM BROKERAGE UNIT ROSE 17 TO 1793 MILLION OR 103 A SHARE THE NUMBERS WERE VERY GOOD SAID SG WARBURG ANALYST FRANK SUOZZO WHO ADDED THAT THE RESULTS WERE BETTER THAN EXPECTED MR SUOZZO SAID THE COMPANY'S LIFE INSURANCE OPERATION PRIMERICA FINANCIAL SERVICES SHOWED AN INCREASE IN THE AMOUNT OF LIFE INSURANCE IT HAS IN FORCE AN INDICATION THAT THE OPERATION MIGHT SOON REPORT HIGHER PROFITS AFTER NEARLY TWO YEARS OF SLUGGISH RESULTS THAT'S A MAJOR POSITIVE FOR THEM MR SUOZZO SAID SMITH BARNEY EARNED A RECORD 575 MILLION SURPASSING THE PREVIOUS MARK OF 561 MILLION SET IN THE YEAREARLIER PERIOD INCOME FOR THE UNIT IS EXPECTED TO CLIMB EVEN HIGHER AFTER PRIMERICA COMPLETES ITS 1 BILLION ACQUISITION OF THE SHEARSON BROKERAGE OPERATION OF AMERICAN EXPRESS CO IN EARLY JULY AT TRAVELERS REVENUE ROSE SLIGHTLY TO 28 BILLION THE COMPANY SAID OPERATING PROFIT ROSE 29 TO 72 MILLION OR 41 CENTS A SHARE ALL OF TRAVELERS' OPERATING UNITS EXCEPT ITS ASSETMANAGEMENT AND PENSIONSERVICES BUSINESS REPORTED HIGHER PROFITS ALSO HELPING PROFITS WERE LAST YEAR'S LAYOFFS WHICH CONTRIBUTED TO A SHARP DECLINE IN ADMINISTRATIVE COSTS THE OVERALL RESULTS ARE ON TARGET FOR ACHIEVING A SHARP IMPROVEMENT IN OUR OPERATING PERFORMANCE IN 1993 SAID TRAVELERS CHAIRMAN EDWARD BUDD THE COMPANY MADE LITTLE PROGRESS DURING THE QUARTER IN ITS AMBITIOUS EFFORT TO LIQUIDATE ITS 2 BILLION PORTFOLIO OF FORECLOSED REAL ESTATE SAYING IT EXPECTS MAJOR SALES IN THE SECOND HALF OF THE YEAR A SPOKESMAN SAID POSSIBLE OPTIONS TO DISPOSE OF THE REAL ESTATE INCLUDE SELLING THE PROPERTIES IN BULK OR SPINNING THEM OFF IN A BAD BANK ARRANGEMENT IN WHICH INVESTORS WOULD OWN THE PROPERTIES AND TRAVELERS WOULD MANAGE THEM FOR A FEE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY PRIMERICA STOCK SLIPPED 875 CENTS TO CLOSE AT 46875 ON WHAT ANALYSTS SAID MAY HAVE BEEN PROFITTAKING FOLLOWING MONTHS OF APPRECIATION TRAVELERS STOCK ROSE 125 TO 30 A SHARE 9304200084 930420 SIX TAXEXEMPT ISSUES FROM HOSPITALS GET UPGRADES IN RATINGS NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT RAISED THE RATINGS ON SIX TAXEXEMPT HOSPITAL BOND ISSUES REPRESENTING 229 MILLION OF DEBT IN THE FIRST QUARTER WHILE LOWERING NO SUCH RATINGS THAT IS THE SECOND CONSECUTIVE QUARTER THAT RATING UPGRADES BY MOODY'S HAVE EXCEEDED DOWNGRADES AND COUNTERS THE NEGATIVE CREDIT TREND EXPERIENCED BY HOSPITALS FOR THE PAST FIVE YEARS THE RATINGS AGENCY SAID THE FAVORABLE RESULTS REFLECT THE RECENT FINANCIAL STABILIZATION OF HOSPITALS THAT HAVE ENTERED THE TAXEXEMPT MARKET MANY HOSPITALS HAVE BEEN SUCCESSFUL IN ESTABLISHING MORE POSITIVE FINANCIAL PERFORMANCE IN PREPARATION FOR EXPECTED MAJOR CHANGES IN THE DELIVERY OF HEALTH CARE SERVICES IN THE COUNTRY MOODY'S SAID 9304200083 930420 BUSINESS BRIEFS FIBREBOARD CORP SIGNED A LETTER OF INTENT TO PURCHASE PRIVATELY HELD SIERRA SKI RANCH TERMS WEREN'T DISCLOSED BANKERS TRUST NEW YORK CORP OPENED A TRUST COMPANY IN CONNECTICUT TO PROVIDE FINANCIAL AND ESTATE PLANNING INVESTMENT MANAGEMENT AND OTHER PERSONAL AND INSTITUTIONAL TRUST SERVICES RAYTHEON CO ACQUIRED THE ASSETS OF MENUMASTER INC TERMS WEREN'T DISCLOSED RIVERWOOD INTERNATIONAL CORP REACHED AN AGREEMENT IN PRINCIPLE TO LAUNCH A JOINT VENTURE WITH DANAPAK HOLDING LTD TO PROVIDE FOOD AND BEVERAGE PACKAGING TO THE SCANDINAVIAN MARKET TERMS WEREN'T DISCLOSED MCI COMMUNICATIONS CORP SIGNED A FIVEYEAR AGREEMENT TO PROVIDE SPECIALTY RETAILER MELVILLE CORP WITH A PACKAGE OF BUSINESS TELECOMMUNICATIONS SERVICES LB FOSTER CO SIGNED A LETTER OF INTENT TO BUY THE RAILRELATED ASSETS OF MIDWEST CORP A UNIT OF UNR INDUSTRIES INC TERMS WEREN'T DISCLOSED INTERNATIONAL PAPER CO COMPLETED ITS ACQUISITION OF INGRAM PAPER CO 9304200082 930420 MONDAY'S MARKETS DOLLAR SKIDS STOCKS FALL BONDS RISE US CURRENCY'S DROP IS LINKED TO REMARKS BY CLINTON ON FRIDAY BY MICHAEL R SESIT AND ANITA RAGHAVAN STAFF REPORTERS OF THE WALL STREET JOURNAL THE CLINTON ADMINISTRATION'S APPARENT ENDORSEMENT OF A WEAKER DOLLAR SENT THE US CURRENCY TUMBLING FURTHER AGAINST THE YEN AND MARK STOCKS FELL WHILE BOND PRICES CLIMBED MODESTLY THE DOW JONES INDUSTRIAL AVERAGE FELL 1162 POINTS TO 346699 IN HEAVY TRADING AFTER SQUEAKING TO A RECORD FRIDAY STANDARD & POOR'S 500STOCK INDEX SLID 148 TO 44746 AND THE NASDAQ COMPOSITE INDEX FELL 375 TO 66303 AFTER INTEL ONE OF THE LARGEST COMPANIES TRADED IN THE OVERTHECOUNTER MARKET PLUNGED FOLLOWING A COURT RULING LATE FRIDAY AGAINST THE SEMICONDUCTOR MAKER IN CURRENCY MARKETS THE DOLLAR SANK MORE THAN 1 AGAINST THE MARK IT FELL A SIMILAR AMOUNT AGAINST THE YEN HITTING ANOTHER POST WORLD WAR II LOW OF 11075 YEN BEFORE RECOVERING SLIGHTLY ECONOMISTS SAID THE SELLOFF WAS SPARKED BY SIGNS THAT THE CLINTON ADMINISTRATION IS WILLING TO TOLERATE A LOWER DOLLAR TO BOOST US EXPORTS PARTICULARLY AGAINST COMPETITION FROM JAPAN THE DOLLAR HAS FALLEN 11 AGAINST THE YEN SINCE THE START OF THE YEAR AND SOME TRADERS ATTRIBUTED THE JAPANESE STOCK MARKET'S 27 DECLINE DURING THE PAST TWO TRADING DAYS TO WORRIES THAT A STRONGER YEN WILL CUT INTO PROFITS FOR JAPANESE EXPORTERS THE DOLLAR IS EFFECTIVELY BEING PUSHED DOWN AGAINST THE YEN BY THE PUBLIC STATEMENTS OF HIGH OFFICIALS SAID MIECZYSLAW KARCZMAR AN ECONOMIC ADVISER TO DEUTSCHE BANK AG IN NEW YORK ON FRIDAY PRESIDENT CLINTON SAID THAT THE RISING YEN WAS ONE OF THREE OR FOUR THINGS WORKING TODAY THAT MIGHT GIVE US MORE RESULTS IN SHRINKING THE US TRADE DEFICIT AGAINST JAPAN A CLINTON SPOKESMAN LATER SAID THAT THE PRESIDENT'S REMARK WAS NOT NECESSARILY A MAJOR POLICY PRONOUNCEMENT NEVERTHELESS MR KARCZMAR SAID IT IS INCREASINGLY CLEAR THAT THE CLINTON ADMINISTRATION HAS DEVALUATIONIST INCLINATIONS THE MARKETS ARE CLEARLY SENSING THIS ATTITUDE AND RESPONDING ACCORDINGLY WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 029 TO 10468 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 2435 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1182 ISSUES DECLINED AND 779 ADVANCED BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED 3/8 POINT OR 375 FOR EACH 1000 FACE AMOUNT TO YIELD 672 THE DOLLAR SKIDDED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 15978 MARKS AND 11113 YEN COMPARED WITH 16175 MARKS AND 11230 YEN LATE FRIDAY 9304200081 930420 REGULATORY CHOKEHOLD UNSHACKLE FOREIGN BANKS BY GARY M WELSH LAW STUDENTS LEARN THE MAXIM THAT BAD CASES MAKE BAD LAW FOREIGN BANKS OPERATING IN THE US ARE LEARNING TWO NEW MAXIMS BAD BANKS AND BAD ANALOGIES ALSO MAKE BAD LAW WHILE MUCH OF FBSEA IS REASONABLE AND DIRECTED TOWARD SPECIFIC SUPERVISORY CONCERNS ITS REQUIREMENT THAT A FOREIGN BANK DEMONSTRATE THAT IT IS SUBJECT TO COMPREHENSIVE SUPERVISION OR REGULATION ON A CONSOLIDATED BASIS BEFORE IT IS ALLOWED TO OPEN A BANKING OFFICE IN THE US EXCLUDES BANKS FROM MANY DEVELOPING COUNTRIES FROM ESTABLISHING BRANCHES OR AGENCIES HERE THIS NOT ONLY INHIBITS THE DEVELOPMENT OF TRADE WITH THESE NEW MARKETS BUT ALSO HARMS THE GROWTH OF SUCH INTERNATIONAL FINANCIAL CENTERS AS MIAMI EVEN FOREIGN BANKS THAT CAN MEET THE NEW STANDARDS FIND THEIR APPLICATIONS TO ESTABLISH OFFICES OR EXPAND IN THE US SUBJECT TO INTERMINABLE DELAYS CAUSED IN PART BY NAME CHECKS OF THEIR INSTITUTION BY THE FEDERAL BANKING AGENCIES CONGRESS SEVERELY CRITICIZED FEDERAL INTELLIGENCE AND ENFORCEMENT AGENCIES FOR NOT EFFECTIVELY SHARING OR COMMUNICATING INFORMATION THEY PURPORTEDLY HAD ON BCCI WITH THE FEDERAL BANKING AGENCIES TO AVOID A REPEAT THE BANKING AGENCIES NOW ROUTINELY REQUIRE A FOREIGN BANK APPLYING TO DO ALMOST ANYTHING IN THE US TO SUBMIT INFORMATION ON ITS OFFICERS DIRECTORS AND PRINCIPAL SHAREHOLDERS THIS INFORMATION IS THEN CHECKED TO DETERMINE IF THERE IS ANY INFORMATION ON FILE WITH INTERPOL AND US INTELLIGENCE AND ENFORCEMENT AGENCIES THAT WOULD CALL INTO QUESTION THE INTEGRITY OF THE INSTITUTION OR ITS PRINCIPALS THIS NAME CHECK HAS NO TIME LIMITS AND THERE HAVE BEEN PROCESSING DELAYS OF EVEN A YEAR OR MORE US BANKS HAVE LITTLE TO FEAR FROM UNFRIENDLY TAKEOVERS BY FOREIGN BANKS AS THE NAME CHECKS WOULD LIKELY PUT SUCH AN APPLICATION IN A PERMANENT STATE OF SUSPENDED ANIMATION AS IF THE FALLOUT FROM BCCI WERE NOT ENOUGH FOREIGN BANKS ARE ALSO ENCOUNTERING INCREASED SUSPICION ABOUT THEIR BUSINESS MOTIVES FOR EXPANSION IT HAS BEEN SUGGESTED FOR EXAMPLE THAT NOTWITHSTANDING THEIR RECENT FINANCIAL DIFFICULTIES JAPANESE BANKS MAY SEEK TO DOMINATE THE US FINANCIAL SERVICES MARKET IN MUCH THE WAY THAT JAPANESE AUTO MAKERS PURPORTEDLY DO THE US CAR MARKET PURSUING THIS ANALOGY TO ITS FULLEST SOME IN CONGRESS BELIEVE THAT IF YOU RESTRICT FOREIGN BANK GROWTH HERE US CONSUMERS WILL TURN TO US BANKS AND THEIR PRODUCTS MUCH THE SAME EFFECT THAT IMPORT QUOTAS ON FOREIGN CARS HAVE ON CONSUMER DEMAND THIS VIEW HAS SURFACED IN PROPOSALS TO REQUIRE FOREIGN BANKS TO CONDUCT THEIR US BUSINESS THROUGH SEPARATELY CAPITALIZED SUBSIDIARIES RATHER THAN BRANCHES THIS WOULD LIMIT US LENDING BY BASING IT ON MUCH SMALLER SUBSIDIARY CAPITAL NATURALLY THE DESIRE AND WILLINGNESS OF FOREIGN BANKS TO CONTINUE THEIR EXPANSION IN US MARKETS HAS BEGUN TO WANE THE TIMING IS PARTICULARLY UNFORTUNATE SINCE OVER THE PAST SEVERAL YEARS FOREIGN BANK BRANCHES AND AGENCIES IN THE US UNLIKE THEIR US COUNTERPARTS HAVE INCREASED THEIR COMMERCIAL LENDING ACCORDING TO THE FEDERAL RESERVE BOARD US OFFICES OF FOREIGN BANKS INCREASED THEIR BUSINESS LENDING FROM 1474 BILLION IN DECEMBER 1990 TO 1684 BILLION IN JUNE 1992 IN THE SAME PERIOD BUSINESS LOANS AT DOMESTICALLY OWNED US BANKS DECLINED FROM 4351 BILLION TO 3811 BILLION CONTRARY TO THE JAPANESE AUTO INDUSTRY ANALOGY FOREIGN BANKS HAVE NOT GENERALLY INCREASED THEIR SHARE OF THE US MARKET AT THE EXPENSE OF LARGER US BANKS THE RELATIONSHIP IS IN MANY WAYS MORE SYMBIOTIC THAN COMPETITIVE FOREIGN BANKS ARE THE LARGEST SEGMENT OF THE BUYER MARKET FOR LARGE SYNDICATED US LOANS ACCOUNTING FOR 50 OR MORE OF THE PARTICIPANTS ON MANY CREDITS WITHOUT THEM THERE WOULD BE INSUFFICIENT DEPTH OR LIQUIDITY TO SERVICE THE NEEDS OF MANY LARGE AND MIDSIZE US BORROWERS IN FACT FOREIGN BANKS HAVE BEEN MAJOR PARTICIPANTS IN RECENT LARGE CREDITS ARRANGED FOR US CAR MAKERS US BANKS GENERALLY WELCOME FOREIGN BANK PARTICIPANTS IN THEIR CREDITS BECAUSE UNDER THE BASEL CAPITAL RULES BANKS ARE ENCOURAGED TO LAY OFF AS MUCH COMMERCIAL RISK AS POSSIBLE BECAUSE LOANS BY FOREIGN BANK BRANCHES AND AGENCIES IN THE US ARE MADE AGAINST THE CAPITAL OF A FOREIGN BANK'S HOME OFFICE FOREIGN BANK PARTICIPATION ALSO SPREADS RISK AND MINIMIZES POTENTIAL CLAIMS ON THE FEDERAL DEPOSIT INSURANCE CORP FUND TO CONVINCE FOREIGN BANKS THAT INHERENT SUSPICION WILL NOT NOW BE A PERMANENT FEATURE OF US POLICY THE CLINTON ADMINISTRATION SHOULD CONSIDER A NUMBER OF INITIATIVES FOR IMPROVING THE CURRENT CLIMATE FIRST IT COULD PROPOSE AN AMENDMENT TO FBSEA TO MAKE CONSOLIDATED SUPERVISION A DISCRETIONARY RATHER THAN MANDATORY ELEMENT OF APPROVAL FOR FOREIGN BANK OFFICES THIS WOULD BE CONSISTENT WITH THE ORIGINAL FBSEA LEGISLATION RECOMMENDED BY THE FEDERAL RESERVE BOARD AND WITH RECENT BASEL COMMITTEE GUIDELINES ON INTERNATIONAL BANK SUPERVISION SECOND THE ADMINISTRATION COULD WORK WITH THE BANKING ENFORCEMENT AND INTELLIGENCE AGENCIES TO MORE EFFECTIVELY SCREEN WHICH FOREIGN BANK APPLICANTS REQUIRE NAME CHECKS AND TO ENSURE THAT SUCH CHECKS ARE ACCOMPLISHED IN A TIMELY MANNER FOR EXAMPLE FOREIGN BANKS WITH A LONG HISTORY OF REPUTABLE OPERATIONS IN THE US COULD BE SUBJECTED TO A MUCH MORE ABBREVIATED PROCEDURE SUCH AS CHECKS ONLY ON RECENT ADDITIONS TO SENIOR BRANCH MANAGEMENT OR THE PARENT BOARD IN THIS REGARD THE FEDERAL RESERVE BOARD LAST MONTH SOUGHT ON ITS OWN TO REDUCE GENERAL PROCESSING DELAYS AND ITS STAFF RECENTLY ATTEMPTED TO LIMIT NAME CHECKS ON CERTAIN ROUTINE NONBANK INVESTMENTS OR ACTIVITIES THIRD THE ADMINISTRATION COULD STRONGLY ENDORSE THE REPORT ISSUED IN DECEMBER 1992 BY THE TREASURY DEPARTMENT AND FEDERAL RESERVE THAT SUPPORTED THE NEED TO MAINTAIN THE PRINCIPLE OF INVESTOR CHOICE IN US MARKETS FOR FOREIGN BANKS FOREIGN BANKS COULD CHOOSE THE FORM OR FORMS OF ESTABLISHMENT THAT ARE BEST SUITED TO THE CONDUCT OF THEIR BUSINESS IN THIS REGARD IT IS PARTICULARLY IMPORTANT FOR US CREDIT MARKETS THAT FOREIGN BANKS CONTINUE TO HAVE THE RIGHT TO DO BUSINESS THROUGH BRANCHES AND AGENCIES AS WELL AS SUBSIDIARIES PROPOSALS THAT WOULD LIMIT FOREIGN BANKS TO THE SUBSIDIARY FORM OF ORGANIZATION SHOULD THUS BE STRONGLY OPPOSED FOREIGN BANKS ARE AN IMPORTANT PART OF US CREDIT MARKETS LET US NOT HAMSTRING THEM FOR THE SINS OF A FEW OR FOR THE WRONG COMPETITIVE REASONS MR WELSH PRACTICES LAW IN WASHINGTON DC AND IS A LECTURER IN LAW AT BOSTON UNIVERSITY LAW SCHOOL 9304200080 930420 TECHNOLOGY & MEDICINE ADVANCED MICRO WITH LEGAL BARRIERS GONE BEGINS SHIPPING INTEL CHIP CLONES BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL ADVANCED MICRO DEVICES INC UNCHAINED BY A FAVORABLE COURT RULING IN ITS LONGRUNNING LEGAL BATTLE WITH INTEL CORP SAID IT HAS BEGUN SHIPPING CLONES OF INTEL'S 486 CHIPS USED IN HIGHEND PERSONAL COMPUTERS THE SUNNYVALE CALIF SEMICONDUCTOR MAKER'S MOVE TO ENTER THE LUCRATIVE MARKET FOR 486 CHIPS CRACKS INTEL'S MONOPOLISTIC HOLD AS THE SOLE SUPPLIER OF THE POWERFUL MICROPROCESSORS USED AS THE BRAINS IN MOST HIGHEND PERSONAL COMPUTERS FEAR OF A PRICE WAR OR MARKETSHARE LOSS DROVE INTEL'S STOCK DOWN 1225 A SHARE TO 9775 A SHARE IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY WHICH REPRESENTED A 255 BILLION DECLINE IN MARKET CAPITALIZATION BUT AMD'S ENTRY INTO THE LUCRATIVE MARKET IS NOT EXPECTED TO REAP IT A BONANZA THIS YEAR OR SIGNIFICANTLY AFFECT INTEL'S SALES DEMAND FOR 486 CHIPS GREATLY OUTPACES SUPPLY ALSO AMD CURRENTLY ONLY HAS ONE FABRICATION FACILITY LOCATED IN SUNNYVALE CALIF CAPABLE OF MAKING THE COMPLEX CHIPS WHICH SEVERELY LIMITS ITS PRODUCTION CAPACITY STILL ONE ANALYST BOOSTED 1993 EARNINGS PROJECTIONS FOR AMD BY 35 CENTS OR 13 TO 3 A SHARE AMD AND CYRIX CORP HAVE DEVELOPED THEIR OWN VERSIONS OF 486 CHIPS BUT HAVE NOT SHIPPED THEM IN LARGE VOLUMES THE VERSION THAT AMD IS NOW SHIPPING AS A RESULT OF THE COURT DECISION USES INTEL'S MICROCODE OR THE COMPLEX SOFTWARE EMBEDDED IN THE CHIP INTEL HAD ARGUED THAT THE USE OF THE MICROCODE INFRINGED ON ITS COPYRIGHTS A POSITION SUPPORTED BY A FEDERAL JURY VERDICT IN JUNE BUT ON FRIDAY JUDGE WILLIAM INGRAM THREW OUT THE VERDICT GRANTING AMD A NEW TRIAL ON THE GROUNDS THAT INTEL IMPROPERLY WITHHELD CERTAIN DOCUMENTS THAT KEPT AMD FROM FAIRLY PRESENTING ITS CASE AND THAT COULD HAVE INFLUENCED THE JURY TRUE COMPETITION HAS BEEN NONEXISTENT W J SANDERS AMD CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN A STATEMENT THIS WEEK THAT ALL CHANGES INTEL IN RESPONSE SAID IT IS PREPARED TO CONTINUE THE LEGAL BATTLE WITH AMD BUT IS WAITING TO EVALUATE THE AMD CHIP FOR COPYRIGHT INFRINGEMENT BEFORE DETERMINING ITS NEXT MOVE IN A BULLETIN SENT TO INTEL EMPLOYEES YESTERDAY ANDREW GROVE PRESIDENT AND CHIEF EXECTIVE OFFICER SAID THIS DECISION DOES NOT GRANT ANY KIND OF MICROCODE LICENSE TO AMD WE ARE BACK TO SQUARE ONE AND WILL HAVE ANOTHER TRIAL TO DETERMINE WHETHER AMD HAS RIGHTS TO OUR MICROCODE OUR VIEW IS THAT WE BEAT THEM ONCE AND WE'LL BEAT THEM AGAIN MOST IMPORTANTLY WE'RE GOING TO BEAT THEM IN THE MARKETPLACE AMD'S STOCK JUMPED 3875 A SHARE OR ALMOST 16 TO 28 YESTERDAY IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING AMD SAID IT WON'T BE READY TO DISCLOSE TECHNICAL DETAILS ABOUT THE CHIP OR PRODUCTION SCHEDULES UNTIL THURSDAY HOWEVER A PERSON FAMILIAR WITH AMD'S PLANS SAID AMD'S 486 CHIP WILL BE PRICED AT 270 EACH SLIGHTLY BELOW THE HIGHVOLUME PRICE OF AN EQUIVALENT INTEL CHIP LITIGATION HAS PREVENTED AMD FROM SELLING THE DISPUTED VERSION OF THE 486 AS IT INITIALLY PLANNED TO DO BEGINNING IN DECEMBER SINCE THEN THE COMPANY HAS BEEN WORKING ON THE CHIP IMPROVING ITS MANUFACTURING PROCESS AND BUILDING INVENTORY WHICH HAS ALLOWED IT TO BEGIN SHIPPING THE CHIP THIS WEEK AN AMD SPOKESMAN SAID AMD HAS BEEN WORKING ON ANOTHER VERSION OF THE 486 CLONE DEVELOPED ENTIRELY BY ITS OWN ENGINEERS WHICH IS STILL EXPECTED TO BEGIN SELLING EARLY THIS SUMMER THE SPOKESMAN SAID AMD AGREED THAT SALES OF ITS 486 CHIPS WON'T IMMEDIATELY EAT INTO INTEL'S SALES OR START A PRICE WAR BECAUSE SUPPLY IS EXPECTED TO EXCEED DEMAND FOR THE NEXT SIX TO NINE MONTHS INTEL'S ATTORNEY F THOMAS DUNLAP DECLINED TO SAY IF THE COMPANY WOULD SEEK AN INJUNCTION TO STOP AMD FROM SELLING THE CHIP EXPLAINING WE HAVE TO TAKE A LOOK AT WHATEVER THEY SHIP AND WE ARE GOING TO DETERMINE IF THEY INFRINGE OUR INTELLECTUAL PROPERTY RIGHTS AMD COULD BE LIABLE FOR DAMAGES BY PROCEEDING WITH SELLING ITS 486 CLONES WITH INTEL MICROCODE IF AMD ULTIMATELY LOSES ITS LEGAL BATTLE WITH INTEL MR DUNLAP SAID AMD'S CUSTOMERS COULD ALSO BE LIABLE FOR DAMAGES BUT AN AMD SPOKESMAN SAID THE COMPANY WAS CONFIDENT IT COULD SHIELD ITS CUSTOMERS FROM ANY LIABILITY RELATED TO THE CASE WE HAVE EXAMINED THE RISKS AND WE HAVE CONCLUDED THEY ARE PRUDENT RISKS TO TAKE THE SPOKESMAN SAID ANALYSTS AGREED THAT AMD'S EARLIERTHANEXPECTED ENTRY INTO THE 486 MARKET WILL BENEFIT ITS 1993 EARNINGS ONLY DISAGREEING ON WHETHER THE HELP WOULD BE MINUSCULE OR MODEST DANIEL KLESKEN AN ANALYST AT ROBERTSON STEPHENS & CO ESTIMATED SALES WOULD ONLY SLIGHTLY RISE BUT MILLARD PHELPS AN ANALYST WITH HAMBRECHT & QUIST SAID HE BELIEVES AMD WILL BENEFIT FROM BRISK SALES AND WELLPREPARED MANUFACTURING AND HE RAISED HIS 1993 EARNINGS ESTIMATE FOR THE COMPANY TO 3 A SHARE FROM 265 A SHARE FOR ALL OF 1992 AMD EARNED 249 A SHARE SOME ANALYSTS SAID YESTERDAY THAT THE POUNDING OF INTEL'S STOCK WAS A CLEAR OVERREACTION WE'RE TELLING OUR CLIENTS TO BUY INTEL MERRILL LYNCH ANALYST THOMAS KURLAK TOLD THE DOW JONE NEWS SERVICE PEOPLE ARE MAKING WAY TOO MUCH OUT OF THIS BECAUSE AMD HAS LIMITED MANUFACTURING CAPACITY FOR INTEL THE MARKET SHARE LOSS SHOULD BE INSIGIFICANT 9304200079 930419 REVIEW & OUTLOOK EDITORIAL LA CATHARSIS AND REALITY YESTERDAY AFTERNOON CABLE NEWS NETWORK BROADCAST A REPORT IT TAPED SATURDAY NIGHT IN SOUTH CENTRAL LOS ANGELES THE REPORT WAS ABOUT THE OVERWHELMING POLICE PRESENCE ON THE STREETS OF SOUTH CENTRAL LA IN THE AFTERMATH OF THE SECOND RODNEY KING VERDICT HERE IS WHAT THREE RESIDENTS OF THE COMMUNITY SAID IN SUCCESSION A BLACK MAN IT'S SAFE BUT I DON'T SEE WHY WE CAN'T HAVE THIS SORT OF PRESENCE ALL THE TIME AN HISPANIC WOMAN SAID THE POLICE SHOULD BE AROUND LIKE THIS MORE OFTEN A BLACK WOMAN SAID IT WAS WONDERFUL FOR THE FIRST TIME I WAS ABLE TO JUST GO OUT FOR A WALK ON SATURDAY NIGHT AND ENJOY MYSELF WITHOUT ALWAYS LOOKING OVER MY SHOULDER FOR SOMEONE THESE VOICES ASKING TO BE SECURE IN THEIR NEIGHBORHOODS AGAINST PREDATORS ARE THE VOICES OF REALITY WHAT THEY GOT OUT OF THE RODNEY KING VERDICT WAS ONE NIGHT OF NORMAL LIFE LET US NOW TURN TO THE COURTROOM WHICH SHOULD BE RIGHTLY VIEWED AS AN AMPHITHEATER OF CATHARSIS CATHARSIS AS WE KNOW INVOLVED THE PURGING OF AUDIENCE EMOTIONS AT GREEK DRAMAS AS THEY WATCHED THE FATES GRIND FORWARD OFTEN CRUSHING REASON LOGIC AND FAIRNESS TO REACH SOME ROUGH VISION OF JUSTICE WE NOW SEEM TO BE LIVING IN AN AGE WHEN TELEVISION AND PRINT CAN TRANSFORM EVENTS SUCH AS THE RODNEY KING AFFAIR INTO SOMETHING SIMILAR THEY BECOME MAINLY MORAL PHENOMENA STRIPPED DOWN TO THE BARE DRAMA WHAT WE ALL WITNESSED HERE IS TWO BRUTAL LA COPS AND A LOWLIFE NAMED RODNEY KING PLAYING OUT THEIR SCENE OF ALMOST PEDESTRIAN HORROR IN AN EMPTY LOT WHILE TWO OTHER COPS SWIM ABOUT IN A FOG OF MORAL AMBIVALENCE AS CLIMAX A THOUGHTFUL JURY IMPOSED GUILT ON TWO MEN INNOCENCE ON TWO OTHERS WITH RODNEY KING LEFT TO PLUMMET TOWARD HIS OWN CERTAIN PERSONAL TRAGEDY NOW THERE MAY BE BENEFIT IN THESE CATHARTIC MEDIA EVENTS BUT THERE ARE DANGERS AND TO IGNORE THEM WILL EXPOSE US TO RISK THE BENEFIT IN FRIDAY'S VERDICT IS THAT IT PROPITIATES DEEPLY AND HONESTLY HELD FEELINGS OF OPPRESSIVENESS AMONG THE CITY'S BLACK RESIDENTS AND AMONG MANY AMERICAN BLACKS ELSEWHERE SOMEHOW CRIES FOR POLICE PROTECTION ARE ABLE TO COEXIST WITH CRIES AGAINST POLICE PRACTICE CATHARSIS AT LEAST HAS BROUGHT US THE KNOWLEDGE THAT SOMETHING IS WRONG HERE AND NEEDS TO BE RIGHTED ONE LARGE DANGER NOW IS THAT THE PRESENTERS OF THESE EVENTS THE MEDIA WILL THINK WE REQUIRE YET MORE OF THESE MORAL PURGINGS THAT WHAT THE PUBLIC WANTS MOST OF ALL IS TO REPEATEDLY BEAR WITNESS TO MORE NATIONAL MELODRAMAS OF JUSTICE AND EXPIATION THAT'S NOT AT ALL WHAT PEOPLE WANT WHAT THEY WANT IS TO BE SAFE IN THEIR HOMES AND NEIGHBORHOODS SAFETY AND PERSONAL SECURITY MAY NOT COMMAND THE ATTENTION OF OUR PHILOSOPHERS BUT CAN ANYONE SERIOUSLY DOUBT THAT CNN'S INTERVIEWEES DESCRIBED ABOVE REPRESENT THE COMPELLING AND CORE CONCERN OF AMERICANS BLACKS AND OTHERS WHO LIVE AND OFTEN DIE VIOLENTLY IN SOUTH CENTRAL LOS ANGELES OR THE SOUTH BRONX OR WASHINGTON DC WHAT THE KING CATHARSIS IS TRYING TO POINT US TOWARD IS THE RULE OF LAW SPECIFICALLY THE ENFORCEMENT OF THAT LAW IN A WAY THAT PRODUCES CIVIC ORDER THAT THE GODS MAY YET ALLOW US A WAY OUT OF THESE HORRORS IS SUGGESTED BY THE FACT THAT THE FIGURE WHO HAS EMERGED MOST PROMINENTLY FROM THE LA TRIAL IS THE CITY'S BLACK POLICE CHIEF WILLIE WILLIAMS CHIEF WILLIAMS UNDERSTOOD WHAT SOUTH CENTRAL WANTED MOST FROM THIS VERDICT IT WANTED TO BE SAFE AND IT GOT IT WHEN THE NAACP'S NEW LEADER BEN CHAVIS SHOWED UP AND PLANNED TO MEET WITH HIM THEN ARRANGED TO INCLUDE COMMUNITY LEADERS AND GANG MEMBERS CHIEF WILLIAMS CANCELED THE MEETING WISDOM IS A RARE AND WELCOME GUEST IN OUR POLITICS AND SURELY A GREATER BLACK ROLE IS ONE OF THE KEYS TO LAW ENFORCEMENT IN THE BLACK COMMUNITY STILL IF THE KING VERDICT SAYS TO THE BLACK COMMUNITY THAT JUSTICE CAN PREVAIL WHAT DOES IT SAY TO THOSE CHARGED WITH ENFORCING SAFETY WE WANT YOU TO GO OUT AND PROTECT THE CITIZENS IN PLACES LIKE SOUTH CENTRAL LOS ANGELES SOCIETY SAYS TO POLICE OFFICERS FROM SOMEONE WHO LEADS YOU ON A 75MILEANHOUR AUTO CHASE WHO SHRUGS OFF ELECTRICAL STUN GUNS AND MAY OR MAY NOT BE HIGH ON STRENGTHINDUCING DRUGS BUT IF IN THE PROCESS YOU LOSE YOUR COOL AND INDULGE IN A DEGREE OF FORCE THAT MAY LEAVE NO LASTING INJURY BUT IS LATER JUDGED EXCESSIVE YOU WILL NOT ONLY BE DRUMMED OUT OF THE POLICE FORCE BUT CONVICTED OF A FELONY AND SENT TO PRISON AS A CRIMINAL YOURSELF AND IF A JURY ACQUITS YOU ON THESE CHARGES WE WILL TRY YOU AGAIN DOUBLE JEOPARDY PROTECTIONS APPLYING TO DRUG DEALERS BEING WAIVED FOR POLICEMEN WE DOUBT THAT IN THE END THIS MESSAGE WILL PREVAIL IN THE LONG APPEALS PROCESS THAT LIES AHEAD BUT IF IT DOES WE ALSO DOUBT THAT THE CITIZENS APPEARING ON CNN WILL ENJOY MORE THAN OCCASIONAL NIGHTS OF SAFETY AND PEACE 9304200078 930420 MEDICINE TOP FIRMS PLAN JOINT TESTING OF AIDS DRUGS BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL FIFTEEN MAJOR PHARMACEUTICAL COMPANIES IN A HIGHLY UNUSUAL MOVE DESIGNED TO SPEED RESEARCH AGREED TO CONDUCT JOINT STUDIES OF EXPERIMENTAL MEDICINES AGAINST AIDS THE AGREEMENT APPARENTLY INITIATED BY MERCK & CO IS THE RESULT OF A YEAR OF INTENSE NEGOTIATIONS AMONG DRUG MAKERS THAT WERE INCREASINGLY FRUSTRATED BY THEIR FAILED EFFORTS TO DEVELOP INDIVIDUAL DRUGS TO CRIPPLE HIV THE VIRUS THAT CAUSES AIDS SEVERAL TOP AIDS SCIENTISTS HAILED THE COLLABORATION REASONING THAT BY POOLING RESOURCES THE DRUG MAKERS WILL DISCOVER SOONER WHICH OF A HOST OF DRUGS IN EARLY RESEARCH ARE SUPERIOR AND WHICH ONES WORK BEST WHEN COMBINED WITH ONE ANOTHER I THINK THE COLLABORATION IS ABSOLUTELY NECESSARY SAID JEROME GROOPMAN AN AIDS RESEARCHER AND DOCTOR AT NEW ENGLAND DEACONESS MEDICAL CENTER IN BOSTON NO ONE SHOULD THINK THIS IS A SOLUTION WE MUST WAIT TO SEE IF THESE COMPANIES CAN TRULY WORK TOGETHER IN THE PAST YEAR DRUG MAKERS AND OTHERS HAVE FOUND THAT THE AIDS VIRUS DEVELOPS RESISTANCE FRIGHTENINGLY FAST WHEN TREATED WITH ANY OF A HANDFUL OF EXPERIMENTAL ANTIVIRAL MEDICINES EARLIER THIS YEAR A RESEARCHER AT HARVARD UNIVERSITY RECEIVED ATTENTION FOR SHOWING IN TESTTUBE STUDIES THAT COMBINING SEVERAL OF THESE DRUGS OVERCAME THE RESISTANCE PROBLEM BUT THE LOGISTICS OF GETTING DRUG MAKERS TO SHARE THEIR EXPERIMENTAL MEDICINES AND DATA HAS SLOWED RESEARCH DR GROOPMAN SAID THIS UNIQUE COLLABORATION WILL BE A SUCCESS IF IT MERELY SPEEDS THINGS UP FOR YEARS AIDS ACTIVISTS AND ACADEMIC SCIENTISTS HAVE CALLED ON THE PHARMACEUTICAL COMPANIES TO POOL RESEARCH IN A KIND OF NATIONAL CAMPAIGN AKIN TO THE MANHATTAN PROJECT THE CRASH EFFORT BY SCIENTISTS TO DEVELOP THE ATOMIC BOMB DURING WORLD WAR II P ROY VAGELOS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF MERCK INITIATED PRIVATE TALKS WITH INDUSTRY COLLEAGUES IN 1987 IN AN UNSUCCESSFUL EFFORT TO GET COMPETITORS TO SHARE BASIC RESEARCH INFORMATION BUT PARTICIPANTS IN THE NEW AGREEMENT SAID FINDINGS IN THE LAST YEAR HAVE PERSUADED THEM TO JOIN TOGETHER IN PARTICULAR MERCK AND SEVERAL OTHER COMPANIES LAST YEAR WERE STUNNED WHEN TESTS OF THEIR DRUGS CAUSED THE AIDS VIRUS TO MUTATE INTO A SURPRISINGLY RESISTANT STRAIN FINDING AN EFFECTIVE DRUG AGAINST THE VIRUS HAS BEEN A MUCH MUCH TOUGHER JOB THAN WE ORIGINALLY THOUGHT DR VAGELOS SAID IT IS VITAL THAT THE COMPANIES GET TOGETHER AND SHARE INFORMATION EARLY TO FIGURE OUT WHICH DRUGS WILL WORK BEST TOGETHER SOME AIDS ACTIVISTS HAD MIXED FEELINGS ABOUT THE AGREEMENT CRITICIZING THE COMPANIES FOR BEING WILLING TO SHARE ONLY TESTING OF EXISTING EXPERIMENTAL MEDICINES AND NOT BASIC LABORATORY RESEARCH IT'S A STEP IN THE RIGHT DIRECTION BUT I DON'T THINK THE COMPANIES ARE GOING FAR ENOUGH SAID MICHAEL BECKER A NEW YORK LAWYER INVOLVED IN THE ACTIVIST GROUP ACT UP MR BECKER WHO LOBBIES DRUG COMPANIES TO INTENSIFY THEIR AIDS RESEARCH SAID HE WAS ALSO SKEPTICAL ABOUT THE TIMING OF THE ANNOUNCEMENT I FIND IT VERY CURIOUS THAT THIS IS BEING ANNOUNCED JUST WHEN THE DRUG INDUSTRY IS UNDER SUCH STRONG ATTACK FROM THE CLINTON ADMINISTRATION OVER THE INDUSTRY'S PRICING POLICIES MR BECKER SAID NOTING THAT COMPANIES MAY BE TRYING TO MUTE PUBLIC IRE LET'S SEE WHAT THIS AGREEMENT PRODUCES IN A YEAR OR SO MR BECKER ADDED A SPOKESMAN AT MERCK SAID THE ANNOUNCEMENT WAS MADE NOW BECAUSE THE AGREEMENT AMONG THE COMPANIES WAS ONLY RECENTLY HAMMERED OUT IN AN INDUSTRY KNOWN FOR ITS FEROCITY IN GUARDING RESEARCH SECRETS THE ACCORD IS BEING VIEWED BY PARTICIPANTS AS A MILESTONE WITH FEW IF ANY PRECEDENTS IT'S A MUCH WELCOMED BREATH OF FRESH AIR SAID ALAN WEINSTEIN VICE PRESIDENT FOR RESEARCH AT ELI LILLY & CO INDIANAPOLIS WE'RE DEALING HERE WITH A GROUP OF COMPANIES THAT GENERALLY DON'T COMMUNICATE WHAT WE'RE TRYING HERE IS TOTALLY NEW AND VERY UNCONVENTIONAL IN DRUG RESEARCH ALONG WITH MERCK AND LILLY THE PARTICIPANTS INVOLVE MOST BUT NOT ALL THE MAJOR DRUG COMPANIES WITH EXTENSIVE RESEARCH EFFORTS TO DEVELOP ANTIHIV DRUGS RESEARCHERS SAID THAT TWO COMPANIES ABBOTT LABORATORIES OF ABBOTT PARK ILL AND UPJOHN CO OF KALAMAZOO MICH WERE CONSPICUOUSLY ABSENT FROM THE CONSORTIUM OFFICIALS AT ABBOTT COULDN'T BE REACHED FOR COMMENT BUT JERRY MITCHELL A TOP EXECUTIVE AT UPJOHN SAID HIS COMPANY HAD RECENTLY UNCOVERED THREE NEW EXPERIMENTAL DRUGS THAT APPEAR IN LAB STUDIES TO BE MORE EFFECTIVE THAN DRUGS THAT HAVE BEEN CAUSING RESISTANCE WE HAVE OUR PLATE FULL RIGHT NOW PLANNING TESTS OF THESE DRUGS FOR WHICH WE HAVE VERY HIGH HOPES DR MITCHELL SAID I THINK THE COLLABORATION IS A GREAT IDEA HOWEVER AND WE MAY GET INVOLVED LATER UNDER TERMS OF THE AGREEMENT THE COMPANIES WILL SHARE INFORMATION ABOUT A NEW DRUG ONCE A COMPANY HAS CONDUCTED PRELIMINARY HUMAN TESTS SHOWING THE MEDICINE IS SAFE IN PEOPLE AND PRODUCES SOME EVIDENCE OF EFFECTIVENESS AT THAT POINT A COMMITTEE OF TOP RESEARCHERS FROM EACH OF THE COMPANIES WILL DECIDE WHETHER THE NEW DRUG SHOULD BE TESTED IN COMBINATION WITH OTHER CANDIDATE DRUGS THERE LITERALLY ARE DOZENS OF DRUGS BEING DEVELOPED BY THESE COMPANIES SAID DANIEL HOTH AN OFFICIAL AT THE FEDERAL GOVERNMENT'S NATIONAL INSTITUTE OF ALLERGIES AND INFECTIOUS DISEASE WE ARE VERY PLEASED TO SEE THE COMPANIES TRYING TO FIGURE OUT HOW TO TEST ALL OF THESE MY SENSE IS THAT FOR COMPANIES WHO GENERALLY DON'T SHARE INFORMATION THIS IS A PRETTY COURAGEOUS STEP SAID SAMUEL BRODER HEAD OF THE NATIONAL CANCER INSTITUTE SEVERAL RESEARCHERS SAID THEY HOPED THE DRUG COMPANIES MIGHT ALSO SHARE DETAILS OF DRUG DISCOVERIES PRIOR TO HUMAN TESTING BUT THE COMPANIES SAID SUCH A COLLABORATION MIGHT VIOLATE ANTITRUST LAWS OR COMPLICATE PATENT ISSUES BESIDES MERCK AND LILLY THE COMPANIES IN THE INTERCOMPANY COLLABORATION FOR AIDS DRUG DEVELOPMENT ARE AB ASTRA SWEDEN BRISTOLMYERS SQUIBB NEW YORK BOEHRINGER INGELHEIM A RIDGEFIELD CONN UNIT OF BOEHRINGER INGELHEIM INTERNATIONAL GMBH GERMANY BURROUGHS WELLCOME CO A UNIT OF WELLCOME PLC BRITAIN DU PONT MERCK A JOINT UNIT OF MERCK AND DU PONT CO WILMINGTON DEL GLAXO HOLDINGS PLC BRITAIN HOECHST AG GERMANY HOFFMANNLA ROCHE A UNIT OF THE SWISS COMPANY ROCHE HOLDING LTD MILES LABORATORIES A US UNIT OF THE GERMAN COMPANY BAYER AG PFIZER INC NEW YORK SIGMA TAU ITALY SMITHKLINE BEECHAM PLC BRITAIN AND SYNTEX CORP PALO ALTO CALIF 9304200077 930420 MARKETING & MEDIA CBS ABC NBC HIT A NEW LOW IN TV VIEWING BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE THREE MAJOR BROADCAST NETWORKS' COMBINED SHARE OF PRIMETIME VIEWING FELL TO A NEW LOW THIS TELEVISION SEASON DASHING HOPES OF TV EXECUTIVES WHO JUST A YEAR AGO HAILED THE END OF A LONGTIME SLIDE THE CBS ABC AND NBC NETWORKS SAW THEIR SHARE OF NIGHTLY VIEWING FALL THREE POINTS OR 5 TO JUST 60 OF THE TOTAL TELEVISION AUDIENCE IN THE FIRSTRUN SEASON THAT ENDED SUNDAY NIGHT ONLY A YEAR AGO THE THREENETWORK SHARE EDGED UP ONE POINT TO 63 MARKING THE FIRST YEARTOYEAR INCREASE IN 15 YEARS ABC'S EXECUTIVE VICE PRESIDENT PETER CHRISANTHOPOULOS DISMISSED THE RECORD LOW SHARE ARGUING THAT LAST YEAR'S NUMBER WAS INFLATED BY OLYMPICS PROGRAMMING HOWEVER OLYMPICS COVERAGE IN YEARS PAST DIDN'T STOP THE NETWORKS' SLIDE THUS LAST YEAR'S SMALL UPTURN GAVE MANY IN THE INDUSTRY CAUSE FOR NEW HOPE WHILE THE BIG THREE DECLINED IN PRIMETIME VIEWING BASED ON PRELIMINARY AC NIELSEN CO FIGURES FOR THE 30WEEK TV SEASON NO SINGLE COMPETITOR GAINED SUBSTANTIALLY FROM THE NETWORKS' LOSS FOX BROADCASTING CO A UNIT OF NEWS CORP EXPANDED TO SIX NIGHTS AND HELPED INDEPENDENT STATIONS PICK UP ONE SHARE POINT ALTHOUGH FOX'S AVERAGE RATING DROPPED TO 77 OF HOMES FROM 8 LAST SEASON BASIC CABLE GAINED TWO SHARE POINTS IN PRIMETIME AUDIENCE YET NO PARTICULAR CABLE CHANNEL SHOWED MORE THAN A MARGINAL GAIN THE SHARES OF THE PAY CABLE NETWORKS AND THE PUBLIC BROADCASTING SERVICE WERE FLAT MUCH OF THE RESUMED EROSION FOR THE THREE MAJOR NETWORKS CAN BE PINNED ON NBC A UNIT OF GENERAL ELECTRIC CO NBC WHOSE SIXYEAR RUN AT NO 1 ENDED A YEAR AGO WENT INTO A FREE FALL THIS SEASON DROPPING FROM SECOND TO THIRD PLACE IN TOTAL HOUSEHOLDS NBC'S AVERAGE RATING FELL 10 OVERALL TO 110 OF THE NATION'S 931 MILLION TV HOUSEHOLDS THE NETWORK'S SHARE OF THE NIGHTLY AUDIENCE DROPPED TO 18 OF ALL VIEWERS FROM 20 NBC DOESN'T NOW ACKNOWLEDGE THE 30WEEK SEASON ALTHOUGH IT ALWAYS DID SO WHEN IT WAS IN FIRST PLACE AND CURRENTLY PREFERS TO LOOK AT THE FULL 52WEEK YEAR FOR THE SECOND YEAR IN A ROW CBS FINISHED THE SEASON IN FIRST PLACE IN PRIME TIME EVEN THOUGH THE CBS INC UNIT DROPPED TO AN AVERAGE RATING OF 133 OF HOMES FROM LAST YEAR'S 138 RATING CBS SENIOR VICE PRESIDENT DAVID POLTRACK ARGUED THAT CBS ACTUALLY IMPROVED THIS SEASON AFTER FACTORING OUT 1992'S SUPER BOWL AND WINTER OLYMPICS COVERAGE ABC WHICH FINISHED IN SECOND PLACE THIS YEAR WAS THE ONLY MAJOR NETWORK TO SHOW YEARTOYEAR IMPROVEMENT THE CAPITAL CITIES/ABC INC UNIT DREW 124 OF HOMES COMPARED WITH 122 A YEAR AGO ABC ALSO IS EXPECTED TO FINISH FIRST AMONG MEN AND WOMEN AGES 18 TO 49 A KEY TARGET FOR ADVERTISERS AND AMONG ADULTS AGES 25 TO 54 FINAL FIGURES WILL BE RELEASED TODAY 9304200076 930420 TECHNOLOGY BRIEF BIOTECHNOLOGY GENERAL CORP DRUG FIRM LICENSED TO SELL GROWTH HORMONE IN JAPAN BIOTECHNOLOGY GENERAL CORP SAID ITS RECOMBINANT HUMAN GROWTH HORMONE FOR TREATMENT OF SHORT STATURE IN CHILDREN RECEIVED A PRODUCT LICENSE IN JAPAN THE NEW YORK COMPANY SAID ITS JAPANESE MARKETING PARTNER JCR PHARMACEUTICALS CO WILL LAUNCH GROWJECT WHEN IT RECEIVES PRICING APPROVAL FROM JAPANESE AUTHORITIES THE HORMONE IS PRODUCED BY THE PITUITARY GLAND ITS DEFICIENCY LEADS TO SHORTNESS IN SOME CHILDREN GROWJECT SUPPLEMENTS THE NATURAL HORMONE AND CAN RECTIFY THE DEFICIENCY BIOTECHNOLOGY GENERAL SAID 9304200075 930420 MARKETING & MEDIA ADVERTISING SNAPPLE GOES BIG TIME TO BOOST MARKET SHARE OF NEW AGE DRINKS BY KEVIN GOLDMAN SNAPPLE THINKS IT'S TIME TO GROW UP AFTER ALMOST TWO DECADES OF ADVERTISING ON THE LOWRENT HOWARD STERN RADIO SHOW AND OTHER VENUES OFF THE BEATEN PATH THE VALLEY STREAM NY BEVERAGE COMPANY THIS WEEK IS GOING BIG TIME WITH ITS FIRSTEVER NATIONAL TV RADIO AND PRINT CAMPAIGN THE CAMPAIGN ESTIMATED AT 30 MILLION IS AIMED AT BOOSTING SNAPPLE'S HOLD ON THE BOOMING MARKET FOR NEW AGE BEVERAGES AT A TIME WHEN SUCH HEAVYWEIGHTS AS PEPSICO ARE ENTERING WITH A VENGEANCE BUT THIS SODA CAMPAIGN IS NOT LIKE OTHER EFFORTS FROM BIGGER BEVERAGE COMPANIES WHEREAS COCACOLA'S COKE USES EXPENSIVE SOPHISTICATED TALENT LACED WITH SPECIAL EFFECTS IN A NEW SLEW OF ADS FROM HOLLYWOOD HOTSHOT AGENT MIKE OVITZ AND CRYSTAL PEPSI INVOKES A THEME SONG FROM THE POPULAR ROCK GROUP VAN HALEN SNAPPLE CHOOSES TO DRIVE IN LOW GEAR VIEWER MAIL STARTING WITH REAL LETTERS FROM REAL SNAPPLE FANS THE AD AGENCY KIRSHENBAUM & BOND AIMS TO PUT A BIT OF HUMOR IN THE TOUCHYFEELY CATEGORY OF NEW AGE DRINKS WHILE SHOWING HOW MUCH OF A LOVE AFFAIR SNAPPLE QUAFFERS HAVE WITH THE ALL NATURAL PRODUCT IN ONE AD A SNAPPLE LOVER WRITES THAT HE RELISHES SNAPPLE'S ICE TEA ONE OF 59 FLAVORS WOULD I LIE HE WRITES WE'LL JUST SEE ABOUT THAT RESPONDS WENDY KAUFMAN THE EXECUTIVE AT SNAPPLE WHO ACTUALLY ANSWERS ALL THE FAN MAIL YES THE BEVERAGE ACTUALLY RECEIVES FAN MAIL ALTHOUGH THERE ARE NO REQUESTS YET FOR AUTOGRAPHED PICTURES THAT IS WHEN THE AD TAKES ON THE TONE OF A DAVID LETTERMAN SKETCH THE ADORING WRITER IS SUMMONED TO THE OFFICE OF A LIE DETECTOR EXPERT AND IS STRAPPED TO THE INSTRUMENT AFTER SERIOUS QUESTIONINGWERE YOU LYING WHEN YOU WROTE TO SNAPPLE THE CONSUMER IS GIVEN A CLEAN BILL OF TRUTHFULNESS THEN COMES THE SLOGAN MADE FROM THE BEST PRODUCTS ON EARTH ALTHOUGH THE ADS ATTEMPT TO BE HOMESPUN ONE OF THE 16 SPOTS THAT USE ACTUAL LETTERS USES A REAL NEW YORK CELEBRITY A RETIRED COLONEL FROM THE ARMED FORCES WHO IS LIVING IN KENTUCKY WRITES THAT SNAPPLE IS THE ONLY GOOD THING TO COME OUT OF NEW YORK THE COLONEL GOT A VISITOR WHO BEGGED TO DIFFER WITH THAT OPINION FORMER NEW YORK CITY MAYOR EDWARD I KOCH THE TWO SPENT THE DAY ON THE PICTURESQUE RANCH WHILE HEARTTUGGING MUSIC PLAYS IN THE BACKGROUND MR KOCH WASN'T SUCCESSFUL HOWEVER IN TRYING TO CHANGE THE COLONEL'S MIND DESPITE DROPPING NEW YORK CITY TRIVIA INTO THE CONVERSATION HE SAID THAT IT'S THE PLACE WHERE THE CORNED BEEF SANDWICH WAS INVENTED AND ASKED DO YOU KNOW WHY THEY CALL WALL STREET WALL STREET ANSWER BECAUSE THERE WAS A WALL THERE HE SAYS KIRSHENBAUM & BOND WON THE SNAPPLE ACCOUNT AFTER BEATING RIVAL AGENCIES SUCH AS HAL RINEY AND BOZELL THE AGENCIES DIDN'T INCLUDE CREATIVE BLUEPRINTS IN THEIR PITCHES RATHER THE REVIEW CENTERED ON HOW TO STRATEGICALLY POSITION THE 21YEAROLD DRINK AGAINST LITERS OF COMPETITION OF NEW AGE DRINKS SUCH DRINKS ARE GIVEN THE PECULIAR MONIKER BECAUSE THEY APPEAL TO CONSUMER'S DESIRE FOR LIGHTER DRINKS WHICH EVEN IF THEY ALL AREN'T HEALTHIER LOOK AS IF THEY ARE WE WANTED THE CAMPAIGN TO MIRROR THE PRODUCT'S WORD OF MOUTH POPULARITY SAYS RICHARD KIRSHENBAUM THE AGENCY'S CHAIRMAN AND EXECUTIVE CREATIVE DIRECTOR SNAPPLE HAS ALWAYS RECEIVED A LARGE AMOUNT OF LETTERS AND THE AD AGENCY SAYS IT READ THOUSANDS OF LETTERS ASKED WHETHER THE CAMPAIGN WOULD EVER INCORPORATE THE INEVITABLE NEGATIVE LETTER FROM SOMEONE WHO GAGGED ON THE PRODUCT THE AD AGENCY'S EXECUTIVE LOOKED SHOCKED THERE AREN'T ANY NEGATIVE LETTERS SAYS JONATHAN BOND THE AGENCY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER IN FACT THE ONLY CRITICISM THE COMPANY RECEIVES IS FROM FRUSTRATED FANS WHO CAN'T FIND A PARTICULAR FAVORITE FLAVOR SAYS JUDE HAMMERLE SNAPPLE'S VICE PRESIDENT OF ADVERTISING AND PROMOTION SNAPPLE WHICH SELLS FOR 85 CENTS TO 99 CENTS FOR A 16 OZ BOTTLE AND COSTS SLIGHTLY MORE THAN REGULAR CARBONATED SODA AND JUICES WENT NATIONAL LAST NOVEMBER AFTER BEING A REGIONAL CULT HIT THE CAMPAIGN COULD LITERALLY GO ON FOREVER OR AS LONG AS CONSUMERS KEEP WRITING TO SNAPPLE THE AGENCY SAYS IT TRAVELED AROUND THE WORLD TO FILM THE 16 DIFFERENT SPOTS SOME OF THE FOUR SPOTS PREVIEWED ARE MORE SUCCESSFUL THAN OTHERS THE KOCH AD IS THE BRIGHTEST THE FLATTEST IS A TOUR OF THE SNAPPLE PLANT ON NORTH CENTRAL AVENUE IN VALLEY STREAM WRITE THERE NOT HERE IF YOU FANTASIZE YOUR LETTER BEING TURNED INTO A COMMERCIAL THE TOUR INCLUDES THE MEN'S ROOM AS WELL AS A COOLER FILLED WITH YUP SHELVES OF WHAT ELSE ONE SPOT FEATURES A HARD ROCK BAND FROM NEW JERSEY ROYAL BUST WHO SINGS AN EARSPLITTING ODE TO SNAPPLE IN THE AISLES OF A SUPERMARKET IN LINCOLN PARK NJ THE CAMERAS CAUGHT THE GAZES OF UNSUSPECTING SHOPPERS RANGING FROM DELIGHT TO DISGUST OF ALL THOSE FANATICS WHO WERE APPROACHED BY KIRSHENBAUM & BOND ONLY ONE BACKED OFF FROM APPEARING IN A COMMERCIAL THAT RETREAT CAME FROM A YOUNGSTER WHO WROTE THAT HE LOVED SNAPPLE SO MUCH HE WOULD TATTOO THE LOGO ON HIS BODY WHEN THE AGENCY OFFERED HIM THE CHANCE HE DEMURRED AT THE LAST MOMENT THE ESPN SPORTS CABLE NETWORK TAPPED THE PHILADELPHIA OFFICE OF WIEDEN & KENNEDY AND BOZELL NEW YORK TO HANDLE ITS 15 MILLION AD ACCOUNT PREVIOUSLY AT LOIS USA NEW YORK WIEDEN & KENNEDY WILL DO MORE THAN JUST CREATE ESPN'S ADVERTISING SAID JOHN A LACK EXECUTIVE VICE PRESIDENT OF PROGRAMMING AND MARKETING AT THE BRISTOL CONN NETWORK THE AGENCY ALSO WILL GIVE CREATIVE ADVICE FOR THE NETWORK'S ONAIR PROMOTIONS AND EVEN PROGRAMMING HE SAID BOZELL WHICH WON THE MEDIA PORTION OF THE ACCOUNT WILL TAKE PART IN DEVISING PROMOTIONS FOR THE NETWORK'S ADVERTISERS WIEDEN & KENNEDY IS PERHAPS BEST KNOWN FOR ITS BIG ATHLETIC SHOE CLIENT NIKE WHICH HAS RECENTLY EXPANDED ITS RELATIONSHIP WITH CELEBRITY ENDORSERS INTO MANAGING THEIR CAREERS NO DEALS ARE DONE YET MR LACK SAYS THEIR RELATIONSHIP WITH NIKE AND HOW THEY'VE CREATED AN AMBIANCE FOR THE COMPANY IS SOMETHING WE WERE VERY IMPRESSED WITH HE SAYS THE TWO AGENCIES ARE BEING PAID A MONTHLY FEE WHETHER THEY'VE EARNED IT IN MEDIA BILLINGS OR NOT HE SAYS ESPN IS OWNED 80 BY CAPITAL CITIES/ABC AND 20 BY HEARST CORP REVIEW BROWNFORMAN CORP LOUISVILLE KY SAID IT HAS INVITED 13 AGENCIES TO PARTICIPATE IN THE REVIEW FOR ITS KORBEL CHAMPAGNE AND BOLLA ITALIAN WINE ACCOUNTS WITH COMBINED BILLINGS OF 5 MILLION AMONG THOSE INVITED IS ALTSCHILLERREITZFELD THE OMNICOM GROUP SHOP THAT WON THE RECENT PITCH FOR BROWNFORMAN'S SOUTHERN COMFORT THE INCUMBENT AGENCY FOOTE CONE & BELDING'S FCB/LEBER KATZ ISN'T PARTICIPATING FINALISTS ARE EXPECTED TO BE ANNOUNCED IN EARLY MAY WHO'S NEWS FRANK GINSBERG PRESIDENT AND CHIEF CREATIVE OFFICE OF NEW YORK AGENCY AVRETT FREE & GINSBERG WAS NAMED COCHAIRMAN AND CHIEF EXECUTIVE OFFICER SUCCEEDING AGENCY FOUNDER AND CHAIRMAN JACK AVRETT IN THE CHIEF EXECUTIVE ROLE MR AVRETT SAID HE WILL REMAIN ACTIVE ON MAIN ACCOUNTS AND NEW BUSINESS REPORTING TO MR GINSBERG ARE THREE NEWLY FORMED BUSINESS GROUPS WITH EACH ONE COVERING ACCOUNT SERVICE AND MEDIA PLANNING 9304200074 930420 NATIONSBANK'S EARNINGS JUMPED 55 IN 1ST QUARTER SHAWMUT'S FELL 16 BY MARTHA BRANNIGAN AND RON SUSKIND STAFF REPORTERS OF THE WALL STREET JOURNAL NATIONSBANK CORP'S PROFIT JUMPED 55 IN THE FIRST QUARTER WHILE SHAWMUT NATIONAL CORP'S EARNINGS FELL 16 BECAUSE OF A SPECIAL CHARGE FIRSTQUARTER NET INCOME AT NATIONSBANK BASED IN CHARLOTTE NC ROSE TO 481 MILLION OR 189 A SHARE INCLUDING A 200 MILLION GAIN FROM AN ACCOUNTING ADJUSTMENT WHICH RELATES TO ACCOUNTING FOR INCOME TAXES AND AMOUNTS TO 79 CENTS A SHARE IN THE YEAREARLIER QUARTER THE COMPANY REPORTED NET INCOME OF 310 MILLION OR 128 A SHARE SHAWMUT BASED IN HARTFORD CONN POSTED FIRSTQUARTER NET INCOME OF 363 MILLION OR 35 CENTS A SHARE DOWN FROM 433 MILLION OR 58 CENTS A SHARE IN THE YEAREARLIER QUARTER PRIMARILY BECAUSE OF A 36 MILLION RESTRUCTURING CHARGE RELATED TO STAFF REDUCTIONS AND BRANCH CONSOLIDATIONS NATIONSBANK THE NATION'S FOURTHLARGEST BANK HOLDING COMPANY REPORTED THAT FIRSTQUARTER INCOME EXCLUDING THE 200 MILLION GAIN FELL 94 TO 281 MILLION FROM 310 MILLION IN THE YEAREARLIER QUARTER THAT'S BECAUSE PRETAX SECURITIES GAINS IN THE LATEST QUARTER AMOUNTED TO 12 MILLION COMPARED WITH 204 MILLION LAST YEAR THE RESULTS FOR NATIONSBANK WHICH HAS ASSETS OF 121 BILLION WERE IN LINE WITH WALL STREET ANALYSTS' ESTIMATES THE STOCK FELL 1 TO CLOSE AT 5475 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING NATIONSBANK REPORTED THAT LOANS GREW BY 44 IN THE LATEST QUARTER FROM THE FOURTH QUARTER OF 1992 MORE ROBUSTLY THAN MOST OF ITS PEERS WHILE SOME OF THAT GROWTH CAME FROM ITS ACQUISITION OF CHRYSLER FIRST'S ASSETS ABOUT 2 OF THE GROWTH WAS INTERNAL NATIONSBANK SAID NOT MANY BANKS ARE SHOWING LOAN GROWTH THIS IS THE EXCEPTION SAID ROBERT ALBERTSON AN ANALYST WITH GOLDMAN SACHS & CO LATESTQUARTER EARNINGS WERE AIDED SIGNIFICANTLY BY CONTINUING IMPROVEMENTS IN CREDIT QUALITY WHICH LED TO A FARLOWER LOANLOSS PROVISION 120 MILLION COMPARED WITH 265 MILLION IN THE FIRST QUARTER LAST YEAR NET CHARGEOFFS WERE 84 MILLION IN THE FIRST QUARTER COMPARED WITH 214 MILLION A YEAR EARLIER SHAWMUT NEW ENGLAND'S THIRDLARGEST BANKING CONCERN WITH 25 BILLION IN ASSETS WILL REDUCE ITS CURRENT STAFF OF 10600 BY ABOUT 500 WORKERS BY YEAR END BRINGING US IN LINE WITH THE COST STRUCTURE OF OUR COMPETITORS SAID SHAWMUT SPOKESMAN ROBERT GUENTHER THE REDUCTIONS ALONG WITH THE CLOSING OF SEVERAL DOZEN BRANCHES SHOULD SAVE SHAWMUT ABOUT 50 MILLION IN ANNUAL COSTS SHAWMUT'S FIRSTQUARTER EARNINGS INCLUDE A 53 MILLION CREDIT FROM ACCOUNTING CHANGES FOR TAXLOSS CARRYFORWARDS A 51 MILLION SECURITIES GAIN AND A 14 MILLION WRITEDOWN IN THE VALUE OF EXCESS SERVICING RIGHTS IN SECURITIZED LOAN PORTFOLIOS BECAUSE OF A LOSS OF EXPECTED SERVICING INCOME AS PEOPLE REFINANCE MORTAGES IN THE YEAREARLIER QUARTER THE BANK'S NET INCOME WAS BOOSTED BY 684 MILLION IN SECURITIES GAINS AND A GAIN OF 97 MILLION FROM THE SALE OF HOME EQUITY LOAN PASSTHROUGH CERTIFICATES THE BANK SAID THE 1993 FIRST QUARTER ALSO INCLUDES A 20 MILLION PROVISION RELATED TO THE SALE DUE TO BE COMPLETED IN THE SECOND QUARTER OF 250 MILLION TO 350 MILLION IN REAL ESTATE LOANS MOST OF WHICH ARE FORECLOSED NONACCRUING OR RESTRUCTURED CREDITS SHAWMUT'S COMMON STOCK FELL 1125 A SHARE TO CLOSE AT 22625 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY 9304200073 930420 BUSINESS BRIEF REEBOK INTERNATIONAL LTD FIRSTQUARTER NET ROSE 8 ON INCREASE IN SALES OF 3 REEBOK INTERNATIONAL LTD SAID FIRSTQUARTER PROFIT ROSE 8 ON A 3 SALES GAIN THE STOUGHTON MASS MAKER OF SPORTS AND CASUAL FOOTWEAR AND APPAREL SAID NET INCOME WAS 678 MILLION OR 74 CENTS A SHARE COMPARED WITH 623 MILLION OR 67 CENTS A SHARE IN THE YEAREARLIER QUARTER SALES ROSE TO 8252 MILLION FROM 7974 MILLION IN THE US REEBOK SAID FOOTWEAR SALES ROSE 29 TO 358 MILLION AND APPAREL SALES ROSE 38 TO 312 MILLION INTERNATIONAL SALES OF REEBOK SHOES AND APPAREL WERE UP 95 TO 3313 MILLION DESPITE THE NEGATIVE COMPARATIVE EFFECT OF A STRONGER DOLLAR IN MOST FOREIGN MARKETS REEBOK SAID THAT THROUGH MARCH 31 IT HAS REPURCHASED 38 MILLION COMMON SHARES FOR 1238 MILLION AS PART OF A 200 MILLION REPURCHASE PROGRAM SCHEDULED TO BE COMPLETED IN JULY REEBOK NOW HAS 91 MILLION SHARES OUTSTANDING COMPARED WITH 936 MILLION SHARES A YEAR EARLIER 9304200072 930420 BUSINESS BRIEF ARCHERDANIELSMIDLAND CO FOODMEAL MAKER CONTRACTS WITH UKRAINEBASED ATON ARCHERDANIELSMIDLAND CO SAID IT AGREED TO SELL 100 MILLION OF FOOD INGREDIENTS TO ATON A PRIVATE COMPANY BASED IN UKRAINE THE DECATUR ILL AGRICULTURAL FOODINGREDIENT PROCESSOR SAID THE INITIAL DELIVERY TO UKRAINE UNDER THE 12MONTH PACT WILL INCLUDE SOY PROTEIN A FEED THAT IS USED TO ENHANCE THE QUALITY AND SUPPLY OF MEATS IT WILL ALSO INCLUDE SOYBASED MILK POWDER CLOSELY HELD ARCHERDANIELS SAID IT AND ATON ALSO ARE EXPLORING POSSIBLE ARRANGEMENTS FOR A TECHNOLOGY TRANSFER AS WELL AS POTENTIAL JOINT VENTURES FOR VARIOUS FOOD INGREDIENTS AND PRODUCTS 9304200071 930420 BUSINESS BRIEF ASK GROUP INC SOFTWARE COMPANY REPORTS LOSS FOR FISCAL THIRD QUARTER AS EXPECTED ASK GROUP INC SAID IT POSTED A LOSS FOR ITS FISCAL THIRD QUARTER ENDED MARCH 31 FOR THE QUARTER ASK POSTED A LOSS OF 674000 OR THREE CENTS A SHARE COMPARED WITH YEAREARLIER NET INCOME OF 2 MILLION OR NINE CENTS A SHARE REVENUE WAS 1005 MILLION COMPARED WITH 1082 MILLION A YEAR EARLIER EARLIER THIS MONTH THE MOUNTAIN VIEW CALIF SOFTWARE CONCERN SAID IT WOULD REPORT BREAKEVEN RESULTS OR A LOSS FOR THE PERIOD AFTER A NUMBER OF EXPECTED SOFTWARE LICENSE SALES DIDN'T CLOSE BY THE QUARTER'S END THE COMPANY'S STOCK DOVE 43 CLOSING AT 1025 A SHARE AFTER THE ANNOUNCEMENT ASK RELEASED ITS RESULTS LATE YESTERDAY AFTER THE MARKET CLOSED IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY ASK CLOSED UNCHANGED AT 13 FOR THE NINE MONTHS ASK POSTED A NET LOSS OF 46 MILLION OR 21 CENTS A SHARE ON REVENUE OF 2978 MILLION COMPARED WITH A NET LOSS OF 11 MILLION OR FIVE CENTS A SHARE ON REVENUE OF 2901 MILLION A YEAR AGO 9304200070 930420 FUTURES EXCHANGES' FEES FOR NEW CONTRACTS REDUCED BY AGENCY WASHINGTON THE COMMODITY FUTURES TRADING COMMISSION HAS SHARPLY REDUCED THE FEES EXCHANGES PAY TO LIST NEW FUTURES CONTRACTS THE AGENCY HAS AGREED TO REDUCE THE FEE FOR REGULATORY APPROVAL OF A NEW FUTURES CONTRACT TO 11000 FROM 15000 THE FEE FOR APPROVING A NEW OPTIONS CONTRACT WAS CUT TO 3000 FROM 7000 EXCHANGES THAT SEEK SIMULTANEOUS APPROVAL OF A FUTURES CONTRACT AND AN OPTION ON IT WILL NOW PAY 12000 FOR THE PACKAGE DOWN FROM 17000 THE CFTC SAID CFTC SPOKESMAN DAVID GARY SAID THE REDUCTIONS REFLECT A SUCCESSFUL EFFORT BY THE CFTC LAST YEAR TO STREAMLINE AND SPEED REVIEW OF NEW CONTRACT APPLICATIONS GARY SAID THE FEES ARE DESIGNED TO COVER THE CFTC'S COST OF APPROVING NEW CONTRACTS NOT RAISE ADDITIONAL REVENUE WHILE THE FEE REDUCTION WILL CUT SOME OF THE FUTURES EXCHANGES' REGULATORY COSTS THE INDUSTRY IS FACING INCREASES IN OTHER AREAS THE CLINTON ADMINISTRATION'S FISCAL 1994 BUDGET WOULD IMPOSE A 14CENT FEE ON EVERY ROUNDTURN FUTURES TRADE TO COVER THE COST OF OPERATING THE CFTC THE FUTURES EXCHANGES WOULD BE REQUIRED TO COLLECT THE FEES FOUR TIMES A YEAR 9304200069 930420 BUSINESS BRIEF BANKAMERICA CORP FIRM SAYS INTERNAL PROBE OF UNIT MAY SHOW VIOLATION BANKAMERICA CORP SAID IT MAY HAVE UNCOVERED INFRACTIONS OF PENSIONFUND MANAGEMENT LAWS IN AN INTERNAL INVESTIGATION OF ITS SEQUOR GROUP UNIT BUT THE SAN FRANCISO BANK DENIED KNOWLEDGE OF A RUMORED PROBE OF THE UNIT BY VARIOUS FEDERAL AGENCIES A BANKAMERICA OFFICIAL SAID THE YEARLONG ANALYSIS OF SECURITIES TRADING ACTIVITIES AT THE NEW YORKBASED UNIT REVEALED POSSIBLE VIOLATIONS OF VERY TECHNICAL LAWS THE VIOLATIONS OCCURRED WHEN SEQUOR WAS OWNED BY SECURITY PACIFIC CORP WHICH BANKAMERICA ACQUIRED A YEAR AGO THE BANK SAID IT DOESN'T EXPECT THE SEQUOR INQUIRY TO BE COMPLETED IN MAY TO HAVE A MATERIAL IMPACT ON ITS FINANCIAL RESULTS IT ALSO SAID THE PRACTICES IN QUESTION CAUSED NO APPARENT HARM TO SEQUOR'S CUSTOMERS THE OFFICIAL SAID HE WAS UNAWARE THAT THE JUSTICE OR LABOR DEPARTMENTS WERE INVOLVED AS WAS REPORTED IN YESTERDAY'S AMERICAN BANKER NEWSPAPER ALTHOUGH THE BANK INFORMED REGULATORS OF ITS INQUIRY A FEDERAL RESERVE BANK OFFICIAL SAID THE FED HAS THE MATTER UNDER REVIEW A SPOKESMAN AT THE LABOR DEPARTMENT DECLINED COMMENT A JUSTICE DEPARTMENT SPOKESMAN WAS UNAVAILABLE FOR COMMENT 9304200068 930420 HEALTH CARE REPORT FROM THE TRENCHES PUT MORE CLINICIANS INTO GOVERNMENT BY WILLIAM V HEALEY MANY SUGGESTIONS ABOUT HEALTHCARE REFORM HAVE BEEN FLOATED IN THE PAST FEW MONTHS HERE'S ANOTHER APPOINT EXPERIENCED CLINICIANS FOR FULLTIME TOURS IN THE DEPARTMENT OF HEALTH AND HUMAN SERVICES THERE WOULD BE NO ADDITIONAL COST BECAUSE THEY WOULD REPLACE NONPHYSICIANS AT THE SAME SALARY BY CLINICIAN I MEAN A PHYSICIAN WHO HAS BEEN DELIVERING DIRECT PERSONAL CARE TO PATIENTS FOR INCOME MEN AND WOMEN WHO HAVE BEEN IN OFFICES OPERATING ROOMS AND AT BEDSIDES WITH RESPONSIBILITY AND LIABILITY SOLELY THEIRS DOCTORS WHO PAY THEIR OWN MALPRACTICE PREMIUMS PHYSICIANS WHOSE LIVES HAVE BEEN SPENT RAPIDLY ASSESSING WHAT WORKS AND WHAT DOESN'T DOCTORS BEHOLDEN ONLY TO THEIR PATIENTS AND THEIR OWN FAMILIES NOT COMPANY PHYSICIANS NOT ACADEMICIANS ON SALARY NOT RESEARCH MDS NOT MEDICAL ADMINISTRATORS NO MANAGEDCARE PROGRAMS IN THEIR BIBLIOGRAPHIES MAYBE NO BIBLIOGRAPHIES NOT OFFICERS IN NATIONAL MEDICAL ORGANIZATIONS OR THOSE WELLCONNECTED POLITICALLY WHITE HAIR AND WRINKLES PREFERRED THERE ARE TENS OF THOUSANDS OF US WHY HAVE EXPERIENCED CLINICIANS IN GOVERNMENT BECAUSE POLITICIANS PROFESSORS ECONOMISTS SOCIOLOGISTS LAWYERS MBAS AND EVEN YOUNG MDS CANNOT AND SHOULD NOT BE EXPECTED TO UNDERSTAND ALL THE RAMIFICATIONS OF THEIR DECISIONS ABOUT DIRECT ONEONONE MEDICAL CARE BY DOCTORS THE DIFFERENCE BETWEEN AN EXPERIENCED CLINICIAN MANAGING A PROBLEM AND SOMEONE LESS SO CAN BE LIFESAVING FOR THE PATIENT AND COSTSAVING FOR THE SYSTEM THE DEFENSE DEPARTMENT USES THE EXPERIENCE AND SKILLS OF ARMY NAVY MARINE CORPS AND AIR FORCE PROFESSIONALS AT MANY LEVELS EVERY DAY IN WASHINGTON MY UNDERSTANDING AS A FORMER US NAVY MEDICAL OFFICER IS THAT COMBAT EXPERIENCE IS LOOKED FOR IN CHOOSING SENIOR OFFICERS IN ALL THE ARMED FORCES THE JUSTICE DEPARTMENT IS FULL OF LAWYERS MANY OF WHOM HAVE HAD YEARS OF EXPERIENCE PRACTICING IN THE TRENCHES OF THEIR STATES BAR ASSOCIATIONS MAKE RECOMMENDATIONS FOR HIGH WASHINGTON JUDICIAL APPOINTMENTS ON THE BASIS OF JUDICIAL EXPERIENCE IS THE SAME TRUE IN THE DEPARTMENT OF HEALTH AND HUMAN SERVICES IT IS NOT THE OVERWHELMING MAJORITY OF ITS ADMINISTRATIVE EMPLOYEES ARE NONPHYSICIANS LET ALONE NONCLINICIANS WHY AREN'T MORE EXPERIENCED CLINICIANS IN POSITIONS WHERE COMBAT EXPERIENCE MIGHT BE PART OF THE DECISION MAKING PROCESS DOES MAKING DECISIONS INVOLVING BILLIONS OF DOLLARS REALLY MAKE SENSE WITHOUT HAVING CONTINUING DAILY INPUT FROM SOME OF THOSE WHO HAVE CARRIED AND WILL CARRY THE ULTIMATE BURDEN FOR MAKING THE SYSTEM WORK SHOULD ALL GENERALS BE ARMCHAIR THE CLINTON ADMINISTRATION SHOULD ASSEMBLE 50 OR MORE CLINICIANS WHO WOULD BE WILLING TO SERVE A ONE OR TWOYEAR TOUR OF DUTY IN HHS TO ASSIST IT IN ESTABLISHING AN IMPROVED HEALTH CARE SYSTEM IT SHOULD MAKE SURE THEY ARE NEITHER AFFILIATED WITH SOME ACTION GROUP NOR GRINDING REPUBLICAN OR DEMOCRATIC AXES LET THE MEMBERS OF THIS GROUP POLLINATE THE BUREAUCRACY FOR A LIMITED TERM BEFORE RETURNING TO THEIR PATIENTS AND HAVING RETURNED LET THEM SHARE WITH THEIR COLLEAGUES AND THEIR PATIENTS WHAT IS GOING ON AT HHS THE ADMINISTRATION WOULD HEAR A NUMBER OF OPINIONS FROM THESE CLINICIANS AND I WOULD EXPECT A WIDE RANGE OF VIEWS ON A VARIETY OF SUBJECTS NO MATTER HHS WOULD HAVE THE OPPORTUNITY TO HEAR PEOPLE WHO HAVE BEEN ON THE FIRING LINE FOR YEARS AND TAKE THOSE OPINIONS INTO ACCOUNT TELEVISED TOWN MEETINGS WEEKEND RETREATS AND THINKTANK POSITION PAPERS ALL HAVE THEIR PLACE BUT THEY DO NOT SUBSTITUTE FOR FLUIDITY FOR MODIFICATION IN DECISION MAKING IF CLINICIANS FROM ALL OVER THE COUNTRY FROM DIFFERENT SPECIALTIES URBAN AND RURAL WERE AVAILABLE ON A DAILY BASIS IN HHS WE ALL WOULD BENEFIT JUDGMENTS MIGHT BE IMPROVED BEFORE THE GOVERNMENT POURS FINANCIAL CONCRETE IT WOULD BE SINGULARLY UNWISE FOR A SMALL CLANDESTINE GROUP TO MAKE HEALTH POLICY DECISIONS AND MANDATE THEIR IMPLEMENTATION BY A DEPARTMENT ESSENTIALLY DEVOID OF EXPERTS IN THE FIELD IT'S NOT DONE IN OTHER DEPARTMENTS WHY HHS CHALLENGE US WE'RE AVAILABLE DR HEALEY IS A PHYSICIAN IN SAN ANTONIO TEXAS 9304200067 930420 ATHENA NEUROSCIENCES GETS RIGHTS FROM LILLY FOR PARKINSON'S DRUG SOUTH SAN FRANCISCO ATHENA NEUROSCIENCES INC SAID IT ACQUIRED EXCLUSIVE US MARKETING AND DISTRIBUTION RIGHTS FROM ELI LILLY & CO FOR THE DRUG PERMAX A TREATMENT FOR PARKINSON'S DISEASE ATHENA SAID INDIANAPOLISBASED LILLY WILL CONTINUE TO MANUFACTURE AND SUPPLY THE DRUG TO ATHENA IN EXCHANGE FOR 36 MILLION IN LICENSE PAYMENTS PARKINSON'S DISEASE IS A DEGENERATIVE DISEASE OF THE NERVOUS SYSTEM THAT CURRENTLY AFFLICTS 500000 AMERICANS WITH TREMORS UNSTEADINESS RIGID MUSCLES AND EVENTUAL LOSS OF MOVEMENT MARKETED BY LILLY SINCE 1989 PERMAX IS A DRUG THAT MIMICS THE EFFECT OF DOPAMINE A BRAIN CHEMICAL THAT IS RESPONSIBLE FOR MOVEMENT POSTURE BALANCE AND WALKING WHEN USED IN COMBINATION WITH OTHER DRUGS PERMAX HAS BEEN SHOWN TO HELP REDUCE SYMPTOMS OF PARKINSON'S DISEASE ATHENA A DEVELOPER OF TREATMENTS FOR AN ARRAY NEUROLOGIC DISEASES SAID THE TRANSACTION IS SUBJECT TO REGULATORY APPROVALS SEPARATELY ATHENA SAID IT PLANS TO RETURN ITS RIGHTS TO THE EXPERIMENTAL EPILEPSY DRUG AN051 TO THE AH ROBINS UNIT OF AMERICAN HOME PRODUCTS CO OF NEW YORK THE COMPANY SAID ITS DECISION WAS A RESPONSE TO THE HIGHLY COMPETITIVE MARKET FOR ANTICONVULSANT THERAPY AND A NEED TO CONCENTRATE ON OTHER OPPORTUNITIES 9304200066 930420 BUSINESS BRIEF USMX INC COMPANY IS WEIGHING OFFER FOR NEVADA GOLD PROPERTIES USMX INC SAID IT IS CONSIDERING A 15 MILLION OFFER FROM PLACER DOME INC'S US UNIT FOR THE ALLIGATOR RIDGE GOLD PRODUCTION PROPERTIES IN NEVADA ALLIGATOR RIDGE REPRESENTS ABOUT ONEHALF OF USMX'S ANNUAL PRODUCTION PLACER DOME OF VANCOUVER BRITISH COLUMBIA SAID THE 35000 OUNCES OF ANNUAL GOLD PRODUCTION AT ALLIGATOR RIDGE WOULD LOWER ITS PEROUNCE OPERATING COSTS AT ITS ADJOINING BALD MOUNTAIN PROPERTY WHICH PRODUCES ABOUT 73000 OUNCES OF GOLD ANNUALLY DENVERBASED USMX SAID IT WOULD USE THE CASH TO DEVELOP SOME PROSPECTS IT HAS IN LATIN AMERICA ALLIGATOR RIDGE WAS NOT GOING TO MAKE THIS COMPANY GROW SAID A USMX SPOKESMAN WHAT WILL IS SOME OF THE WORLD CLASS PROPERTIES WE ARE LOOKING AT IN MEXICO AND ELSEWHERE 9304200065 930420 BUSINESS BRIEF SEAGATE TECHNOLOGY INC DISKDRIVE MAKER REPORTS ITS 3RDPERIOD EARNINGS FELL CITING A 15 MILLION PRETAX RESTRUCTURING CHARGE AND FALLING PRICES FOR ITS DISK DRIVES SEAGATE TECHNOLOGY INC REPORTED ITS FISCAL THIRDQUARTER EARNINGS FELL 42 FROM A YEAR AGO FOR THE QUARTER ENDED APRIL 2 THE MAKER OF COMPUTER DISK DRIVES SAID IT POSTED NET INCOME OF 39 MILLION OR 56 CENTS A SHARE COMPARED WITH YEAREARLIER NET OF 407 MILLION OR 59 CENTS A SHARE REVENUE WAS 754 MILLION COMPARED WITH 780 MILLION A YEAR AGO THE SCOTTS VALLEY CALIF COMPANY SAID THE CHARGE WOULD COVER CONSOLIDATIONS IN WORLDWIDE MANUFACTURING FOR THE NINE MONTHS SEAGATE POSTED NET OF 162 MILLION OR 232 A SHARE ON REVENUE OF 227 BILLION COMPARED WITH YEAREARLIER NET OF 39 MILLION OR SIX CENTS A SHARE ON REVENUE OF 209 BILLION 9304200064 930420 BUSINESS BRIEF INLAND STEEL INDUSTRIES INC COMPANY'S JOINT VENTURES REACH TENTATIVE LABOR PACT INLAND STEEL INDUSTRIES INC CHICAGO SAID ITS INLAND STEEL CO UNIT'S I/N TEK AND I/N KOTE JOINT VENTURES HAVE MADE A TENTATIVE AGREEMENT WITH THE UNITED STEELWORKERS OF AMERICA TO RENEW THE LABOR CONTRACT COVERING 395 WORKERS AT THE TWO JOINT VENTURES INLAND SAID THE TENTATIVE AGREEMENT CALLS FOR AN INITIAL THREEYEAR LABOR PACT TO BE FOLLOWED BY RENEGOTIATION FOR ANOTHER THREEYEAR CONTRACT IN 1996 THE COMPANY DIDN'T DISCLOSE SPECIFIC TERMS OF THE AGREEMENT OTHER THAN THAT THE LONGTERM PACT WOULD ENSURE NO STRIKES OR LOCKOUTS FOR THE SIXYEAR PERIOD INLAND STEEL INDUSTRIES SAID FINAL RATIFICATION OF THE PACT MAY BE EXPECTED TO CONCLUDE BY MAY 16 THE STEEL HOLDING COMPANY SAID I/N TEK WHICH IS 60 HELD BY ITS INLAND STEEL UNIT AND 40 HELD BY JAPAN'S NIPPON STEEL CO AND I/N KOTE A 50/50 VENTURE WITH NIPPON STEEL ARE STEEL FINISHING FACILITIES IN ADJOINING PLANTS IN NEW CARLISLE IND I/N TEK OPERATES A ONEMILLIONTONPERYEAR COLD ROLLING MILL AND I/N KOTE OPERATES TWO GALVANIZING LINES WITH A COMBINED CAPACITY OF 900000 TONS 9304200063 930420 BUSINESS BRIEF F&C INTERNATIONAL INC FRAGRANCE COMPANY FILES FOR CHAPTER 11 PROTECTION F&C INTERNATIONAL INC WHICH THIS MONTH ALLEGED THAT ITS FOUNDER AND FORMER CHAIRMAN SCHEMED TO INFLATE PROFITS SAID IT FILED FOR CHAPTER 11 BANKRUPTCY PROTECTION FROM ITS CREDITORS FLETCHER ANDERSON PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE FILING WITH THE FEDERAL BANKRUPTCY COURT IN CINCINNATI WAS MADE TO ALLOW THE COMPANY TIME TO EFFECT AN ORDERLY SALE OF SOME OF ITS NONCORE OPERATING DIVISIONS TO EFFECT CERTAIN CHANGES IN MANAGEMENT AND CONTROL TO OBTAIN ADEQUATE FINANCING FOR THE COMPANY'S WORKING CAPITAL NEEDS AND TO SUCCESSFULLY REORGANIZE F&C'S FRAGRANCE UNIT HAS BEEN ON THE SALE BLOCK F&C SAID IT IS SEEKING COURT APPROVAL FOR A 4 MILLION WORKING CAPITAL FACILITY WITH STAR BANK A UNIT OF STAR BANK CORP AND PERMISSION TO RETAIN PACHOLDER ASSOCIATES INC TO MANAGE DAYTODAY OPERATIONS AND CARRY OUT THE ASSET SALES THE CINCINNATI FRAGRANCE AND FLAVOR MAKER FIRED CHAIRMAN JON P FRIES AND ACCUSED HIM IN A LAWSUIT OF SETTING UP A MARGIN INCREASE TEAM TO MANIPULATE INVENTORY AND SALES FIGURES MR FRIES HAS BEEN UNAVAILABLE TO COMMENT 9304200062 930420 HIGHLY LEVERAGED WALL STREET GETS RICH FROM ROCKBOTTOM SHORTTERM RATES BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHAT'S THE SECRET TO WALL STREET'S RECORD PROFITS SURE STOCK AND BOND OFFERINGS ARE SIZZLING AND INDIVIDUAL INVESTORS ARE FLOCKING TO THE STOCK MARKET BUT IT IS TODAY'S ROCKBOTTOM SHORTTERM INTEREST RATES AND WALL STREET'S SPECIAL ABILITY TO PROFIT FROM THEM THAT IS GIVING A POWERFUL KICK TO THE STREET'S EARNINGS THANKS TO THE UNUSUALLY LARGE DIFFERENCE BETWEEN SHORT AND LONGTERM INTEREST RATES BIG SECURITIES FIRMS SUCH AS MERRILL LYNCH & CO SALOMON INC AND MORGAN STANLEY GROUP INC ARE FINANCING HUGE STOCKPILES OF BONDS WITH INEXPENSIVE SHORTTERM BORROWING THAT ALLOWS THE FIRMS TO MAKE MONEY ON THE DIFFERENCE BETWEEN THE RATE THEY PAY TO BORROW BILLIONS OF DOLLARS AND THE HIGHER INTEREST RATES THEY RECEIVE ON THEIR LONGTERM BOND HOLDINGS HOW BIG ARE THESE PROFITS SIX BIG BROKERAGE FIRMS GENERATED A RECORD TOTAL 319 BILLION IN INTEREST INCOME AFTER EXPENSES IN 1992 THIS NET INTEREST INCOME AT MERRILL SALOMON MORGAN STANLEY BEAR STEARNS COS PAINEWEBBER GROUP INC AND AMERICAN EXPRESS CO'S SHEARSON LEHMAN BROTHERS INC UNIT IS 63 HIGHER THAN IN 1991 AND IT REPRESENTS A STUNNING 76 OF THE FIRMS' TOTAL PRETAX PROFIT IT'S EASY MONEY AS LONG AS IT LASTS SAYS GUY MOSZKOWSKI BROKERAGE ANALYST AT SANFORD C BERNSTEIN & CO IN THE MEANTIME HE SAYS BROKERAGE FIRMS HAVE POSITIONED THEMSELVES TO CATCH THE PENNIES FROM HEAVEN BY SIGNIFICANTLY BOOSTING THEIR BOND HOLDINGS AND OTHER ASSETS WALL STREET ISN'T THE ONLY ONE BORROWING HEAVILY IN A BID TO TAKE ADVANTAGE OF LOW SHORTTERM RATES INDIVIDUAL INVESTORS ARE BORROWING MORE HEAVILY THAN EVER TO BUY STOCKS AND OTHER INVESTMENTS THEY ARE DOING THIS BY BORROWING ON MARGIN FROM SECURITIES FIRMS MARGIN LOANS ALLOW INVESTORS TO BORROW CASH AGAINST STOCK IN THEIR PORTFOLIO MARGIN LOANS OUTSTANDING TO INDIVIDUAL INVESTORS RECENTLY SURGED TO A RECORD 4516 BILLION SURPASSING THE PEAK SET IN THE MONTH BEFORE THE OCTOBER 1987 STOCKMARKET CRASH ACCORDING TO DATA TRACKED BY THE NEW YORK STOCK EXCHANGE LIKE COMMERCIAL BANKS SECURITIES FIRMS ARE ALLOWED TO HIGHLY LEVERAGE THEMSELVES BY BORROWING HEAVILY AGAINST THEIR EQUITY CAPITAL TODAY WALL STREET FIRMS ARE MORE HIGHLY LEVERAGED THAN EVER SECURITIES FIRMS ARE HOLDING A RECORD 26 OF ASSETS BONDS AND OTHER SECURITIES FOR EVERY 1 OF EQUITY SAYS THE SECURITIES INDUSTRY ASSOCIATION A TRADE GROUP SALOMON'S TOTAL ASSETS BALLOONED 64 TO 159 BILLION AT THE END OF 1992 MERRILL'S TOTAL ASSETS SURGED 24 TO 107 BILLION BUT THERE'S A RISK HERE PROFITS AT THE NATION'S SECURITIES FIRMS WILL BE SEVERELY SQUEEZED IF INTEREST RATES SUDDENLY SURGE IF THAT HAPPENS ANALYSTS SAY WALL STREET'S STEEP LEVERAGE WILL WORK AGAINST IT THIS IS POTENTIALLY A RISKY SCENARIO SAYS MICHAEL FLANAGAN AN ANALYST AT LIPPER ANALYTICAL SECURITIES CORP THE JUMP IN SECURITIES FIRMS' NET INTEREST INCOME UNDERSCORES HOW SIGNIFICANTLY THE FEDERAL RESERVE'S PUSH TO DRIVE DOWN SHORTTERM INTEREST RATES HAS BENEFITED WALL STREET IN ADDITION TO BOOSTING BROKERAGE FIRMS' NET INTEREST INCOME FALLING RATES HAVE ENABLED THE COMPANIES TO NEARLY DOUBLE NET GAINS FROM BOND TRADING FROM MID1989 TO MID1992 SAYS THE SECURITIES TRADE GROUP AND BECAUSE OF LOWER RATES THE INDUSTRY'S ACTUAL DOLLAR BILL' FOR INTEREST COSTS IS SHRINKING BACK TO 1987 LEVELS DESPITE LARGER DEBT INVENTORY AND MORE REVENUE SAYS GEORGE MONAHAN DIRECTOR OF INDUSTRY STUDIES AT THE TRADE GROUP LAST WEEK MERRILL THE NATION'S LARGEST SECURITIES FIRMREPORTED NET INTEREST INCOME OF 2556 MILLION FOR THIS YEAR'S FIRST QUARTER A 29 JUMP FROM THE YEAREARLIER PERIOD AND 43 OF MERRILL'S PRETAX PROFIT PAINEWEBBER HAD A 12 INCREASE IN NET INTEREST INCOME IN THE FIRST QUARTER WALL STREET EXECUTIVES ARGUE THAT IT'S MISLEADING IN SOME WAYS TO SEPARATE NET INTEREST INCOME FROM THE REST OF A FIRM'S REVENUE THEY SAY NET INTEREST INCOME IS PART OF THE OVERALL ACTIVITY OF WALL STREET FIRMS' BUSINESS PARTICULARLY PRINCIPAL TRADING USING A FIRM'S OWN MONEY WALL STREET FIRMS ALSO SAY THEY TAKE PAINS TO REDUCE THE RISK OF RISING INTEREST RATES BY HEDGING THEIR INVENTORIES OF SECURITIES OFTEN BY TAKING OFFSETTING POSITIONS THROUGH THE USE OF SUCH DERIVATIVES AS BOND FUTURES AND OPTIONS WE'RE ABLE TO MAINTAIN LARGER INVENTORIES BECAUSE THEY'RE HEDGED SAYS HERBERT M ALLISON JR MERRILL'S EXECUTIVE VICE PRESIDENT IN CHARGE OF FINANCE AND ADMINISTRATION THUS HE SAYS MERRILL IS NOT TAKING HUGE RISKS THAT COULD CAUSE A REDUCTION IN THE COMPANY'S ABILITY TO FUNCTION AND THOUGH A LONGTERM RISE IN RATES WOULD CRIMP PROFITABILITY MR ALLISON SAYS THE RESULTING INTERESTRATE VOLATILITY WOULD LEAD TO SHORTTERM TRADING PROFIT ALSO HE SAYS MERRILL'S INVENTORY OF SECURITIES IS HIGHLY LIQUID OR EASILY SOLD IF NECESSARY NOT ALL FIRMS HEDGE THEIR INVENTORIES SO COMPLETELY HOWEVER AT SALOMON FOR INSTANCE THE FIRM HEDGES THOSE TRADING POSITIONS EXECUTED ON BEHALF OF CUSTOMERS BUT SALOMON'S PROPRIETARY TRADING POSITIONS FOR ITS OWN ACCOUNT AREN'T ALWAYS HEDGED BECAUSE THE LONGERTERM PROPRIETARY POSITIONS ARE NOT OUTRIGHT INTERESTRATE BETS SAYS DAVID C FISHER SALOMON'S CONTROLLER THOSE BETS ARE ON VARIOUS DIFFERENT RELATIONSHIPS INCLUDING INTERESTRATE AND CURRENCY CHANGES AND TAKE A LONG LONG TIME TO COME TO FRUITION HE SAYS ANOTHER FACTOR THAT HAS REDUCED THE COST OF BORROWING FUNDS FOR MANY BROKERAGE FIRMS IS THAT THEIR CREDIT RATINGS HAVE BEEN BOOSTED AS THEIR PROFITS HAVE SOARED AS MERRILL'S CREDIT RATINGS HAVE RISEN FOR INSTANCE ITS OVERALL BORROWING COSTS HAVE SHRUNK 25 MILLION A YEAR SINCE EARLY 1991 SAYS MR ALLISON THE MAJOR EXCEPTION TO THIS IS SALOMON LAST WEEK STANDARD & POOR'S CORP LOWERED ITS RATINGS ON ABOUT 8 BILLION OF SALOMON'S LONGTERM DEBT CITING THE WIDE FLUCTUATIONS IN SALOMON'S EARNINGS BECAUSE OF ITS HEAVY RELIANCE ON TRADING THE RATINGS DOWNGRADE WILL HAVE A NEGATIVE IMPACT ON SALOMON'S NET INTEREST INCOME SAYS SALOMON'S MR FISHER BUT WE DON'T ANTICIPATE THAT IT WILL BE SIGNIFICANT 9304200061 930420 BUSINESS BRIEF ICOS CORP BIOTECH CONCERN'S DEFICIT WIDENED IN FIRST QUARTER ICOS CORP A SMALL BIOTECHNOLOGY COMPANY REPORTED A LOSS OF 39 MILLION OR 16 CENTS A SHARE FOR THE FIRST QUARTER THIS COMPARES WITH A LOSS OF 14 MILLION OR SIX CENTS A SHARE IN THE YEARAGO QUARTER REVENUE WHICH CONSISTS ENTIRELY OF GOVERNMENT GRANTS WAS 43188 COMPARED WITH 663611 A YEAR AGO THE SEATTLE CONCERN SAID ITS INVESTMENT INCOME ROSE 22 TO 1 MILLION FROM 841200 LAST YEAR THE COMPANY SAID THAT ITS FIRSTQUARTER RESULTS REFLECT THE EXPANSION OF ITS SCIENTIFIC AND PROCESS DEVELOPMENT STAFF TO HELP IT BRING ITS PRODUCTS TO THE MARKETPLACE MORE QUICKLY ALTHOUGH THE COMPANY HAS NO CURRENT PRODUCTS IT HAS INVESTMENTS IN THE RESEARCH AND DEVELOPMENT OF NEW TREATMENTS FOR CHRONIC INFLAMMATORY DISEASES SUCH AS ASTHMA MULTIPLE SCLEROSIS AND RHEUMATOID ARTHRITIS 9304200060 930419 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 9304200059 930420 BUSINESS BRIEF AMR CORP UNIT AMERICA WEST TALKS ON MARKETING SUSPENDED AMERICAN AIRLINES A UNIT OF AMR CORP AND AMERICA WEST AIRLINES SUSPENDED TALKS REGARDING A MARKETING AND CONTRACT SERVICES PACT THAT THEY HAD BEEN DISCUSSING SINCE FEBRUARY IT WAS UNCLEAR HOW FAR THE DISCUSSIONS WHICH BOTH SIDES DESCRIBED AS PRELIMINARY MAY HAVE GONE WHILE SEVERAL POSSIBLE SYNERGIES EXIST BETWEEN THE TWO AIRLINES THERE IS NOT SUFFICIENT IMMEDIATE POTENTIAL TO MERIT ADDITIONAL EXPLORATION AT THIS TIME THE CARRIERS SAID IN A STATEMENT AN AMERICA WEST SPOKESWOMAN DIDN'T COMMENT ON REPORTS THAT THE CARRIER IS EXPLORING POSSIBLE OPTIONS WITH UAL CORP'S UNITED AIRLINES WHILE AMERICAN AND AMERICA WEST HAD SAID THEIR TALKS DIDN'T INVOLVE ANY EQUITY INVESTMENT THEY DIDN'T DISCUSS WHAT THEY DID INVOLVE AMERICA WEST HAS CUT ITS COSTS AND PARED ITS FLEET AND EMPLOYEE RANKS BUT IT'S BEEN LOOKING FOR WAYS TO BOOST TRAFFIC AND GAIN ADDITIONAL REVENUE AMERICAN HAS BEEN DEVELOPING FEEBASED SERVICES IT CAN OFFER OTHER CARRIERS SEPARATELY AMERICA WEST SAID IT ANTICIPATES A SHARP TURNAROUND IN ITS FIRSTQUARTER RESULTS TO BE ANNOUNCED NEXT WEEK IN THE YEAREARLIER QUARTER AMERICA WEST HAD A NET LOSS OF 99 MILLION OR 44 CENTS A SHARE ON REVENUE OF 337 MILLION 9304200058 930420 BUSINESS BRIEF GENERAL MOTORS CORP GERMANY MAY BLOCK SALE OF ALLISON TRANSMISSION UNIT GENERAL MOTORS CORP SAID THE GERMAN GOVERNMENT MAY BLOCK THE SALE OF ITS ALLISON TRANSMISSION UNIT TO A GERMAN TRANSMISSION MAKER A GM SPOKESMAN SAID THE GERMAN ANTITRUST AUTHORITY INDICATED LAST WEEK TO ZF FRIEDRICHSHAFEN AG THAT IT WAS LEANING TOWARD TURNING DOWN THE ACQUISITION REQUEST TO ACQUIRE ALLISON TRANSMISSION HOWEVER THE SPOKESMAN SAID YESTERDAY THAT THE DETROITBASED AUTO MAKER HADN'T BEEN NOTIFIED THAT THE DEAL WAS OFF LAST SUMMER GM ANNOUNCED PLANS TO SELL ITS INDIANAPOLISBASED UNIT WHICH MAKES HEAVY TRANSMISSIONS FOR MILITARY AND COMMERCIAL VEHICLES TO ZF FOR AN AMOUNT THAT WASN'T DISCLOSED A SPOKESMAN FOR ZF'S US OFFICE IN CHICAGO SAID ZF HADN'T RECEIVED A WRITTEN DENIAL FROM THE GERMAN GOVERNMENT BUT WOULD APPEAL ANY DECISION BLOCKING THE ACQUISITION 9304200057 930420 BUSINESS BRIEF MCKESSON CORP FOURTHQUARTER NET RISES AS 3 BUSINESS SEGMENTS GROW BOOSTED BY PROFIT GAINS IN ITS THREE BUSINESS SEGMENTS MCKESSON CORP OF SAN FRANCISCO SAID PROFIT FROM CONTINUING OPERATIONS ROSE 32 IN THE FOURTH QUARTER FOR THE QUARTER ENDED MARCH 31 MCKESSON'S PROFIT FROM CONTINUING OPERATIONS WAS 338 MILLION OR 74 CENTS A SHARE COMPARED WITH 256 MILLION OR 57 CENTS A SHARE IN THE YEAREARLIER PERIOD RESTRUCTURING CHARGES AND LOSSES FROM DISCONTINUED OPERATIONS PRODUCED A NET LOSS OF 398 MILLION FOR MCKESSON IN THE YEARAGO QUARTER REVENUE FOR THE QUARTER ROSE 6 TO 295 BILLION FROM 278 BILLION A YEAR EARLIER MCKESSON SAID ITS THREE BUSINESS SEGMENTS HEALTHCARE SERVICES BOTTLED WATER AND ARMOR ALL A BRAND OF CARCARE PRODUCTS ALL SHOWED PROFIT GROWTH FOR THE YEAR MCKESSON'S NET INCOME WAS 1147 MILLION OR 251 A SHARE UP 19 FROM YEARAGO PROFIT FROM CONTINUING OPERATIONS OF 964 MILLION OR 215 A SHARE LOSSES FROM DISCONTINUED OPERATIONS AND CHARGES RELATED TO RESTRUCTURING AND ACCOUNTING CHANGES GAVE MCKESSON A NET LOSS OF 782 MILLION A YEAR AGO FULLYEAR REVENUE ROSE 13 TO A RECORD 1167 BILLION FROM 1031 BILLION 9304200056 930420 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 13/16 LOW 2 13/16 NEAR CLOSING BID 2 7/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 306 30 TO 119 DAYS 307 120 TO 149 DAYS 308 150 TO 179 DAYS 310 180 TO 259 DAYS 315 260 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 313 30 DAYS 313 60 DAYS 314 90 DAYS CERTIFICATES OF DEPOSIT 261 ONE MONTH 264 TWO MONTHS 268 THREE MONTHS 275 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 305 THREE MONTHS 313 SIX MONTHS BANKERS ACCEPTANCES 3 30 DAYS 3 60 DAYS 301 90 DAYS 303 120 DAYS 305 150 DAYS 306 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS3 3/16 3 1/16 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 1/4 3 1/8 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 5/16 3 3/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 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 INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 6 GERMANY 9 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY APRIL 19 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 282 13 WEEKS 296 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 716 60 DAYS 727 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 716 60 DAYS 726 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 495 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 274 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9304200055 930420 CORRECTIONS & AMPLIFICATIONS THE TREASURY WON'T BE AUCTIONING TWOYEAR AND FIVEYEAR NOTES TOMORROW THE SALE IS NEXT WEEK WITH DETAILS ANNOUNCED TOMORROW THE SECURITIES OFFERING CALENDAR IN YESTERDAY'S EDITION INCORRECTLY REPORTED THAT THE SALE WAS SCHEDULED FOR TOMORROW 9304200054 930420 ECONOMY VACANCY RATE FOR DOWNTOWN OFFICES RISES SURVEY SAYS LEVEL OF 199 IS HIGHEST IN 6 YEARS SUBURBS HOLD STEADY BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL THE OFFICE VACANCY RATE IN THE NATION'S CENTRAL BUSINESS DISTRICTS ROSE TO A SIXYEAR HIGH OF 199 IN THE FIRST QUARTER AS A WAVE OF BANK MERGERS AND CORPORATE CONSOLIDATIONS CONTINUED TO SAP LEASING ACTIVITY ACCORDING TO A QUARTERLY SURVEY OF 40 MAJOR CITIES BY CUSHMAN & WAKEFIELD INC A BIG COMMERCIAL BROKERAGE FIRM BASED IN NEW YORK THE DOWNTOWN VACANCY RATE ROSE FROM 196 IN THE FOURTH QUARTER AND IS NOW THE HIGHEST SINCE THE FIRM BEGAN TRACKING OFFICE VACANCIES IN MID1986 CORPORATE AMERICA IS STILL FEELING THE EFFECTS OF THE ECONOMIC DOWNTURN SAID JOHN L DOWLING EXECUTIVE VICE PRESIDENT OF CUSHMAN & WAKEFIELD UNTIL THE WHITE COLLAR EMPLOYMENT PICTURE IMPROVES WE WON'T SEE A DECREASE IN DOWNTOWN VACANCY RATES AMONG THE WORSTHIT MARKETS IN THE QUARTER WERE WESTCHESTER COUNTY NY WHERE THE DOWNTOWN OFFICE VACANCY RATE SOARED TO 332 FROM 281 IN THE FOURTH QUARTER DETROIT WHERE VACANCIES ROSE TO 226 FROM 198 AND SAN JOSE CALIF WHERE THE VACANCY RATE INCREASED TO 191 FROM 165 THE VACANCY RATE IN DOWNTOWN LOS ANGELES SURPRISINGLY DECREASED TO 252 FROM 269 ALTHOUGH MANY ANALYSTS EXPECT CONTINUED WEAKNESS VACANCIES WERE ALSO DOWN SLIGHTLY IN NEW YORK MIAMI AND DENVER SUBURBAN OFFICE VACANCIES MEANWHILE REMAINED FLAT AT 204 FROM THE FOURH QUARTER WHEN THEY HAD DROPPED TO THE LOWEST LEVEL IN NEARLY 10 YEARS AMID SHARPLY REDUCED CONSTRUCTION AND MODEST LEASING DEMAND THE ACTUAL DOWNTOWN VACANCY RATE NATIONALLY IS PROBABLY SOME PERCENTAGE POINTS HIGHER ANALYSTS SAID BECAUSE CUSHMAN & WAKEFIELD'S SURVEY DOESN'T INCLUDE SUBLEASED SPACE THAT HAS BEEN VACATED BUT HASN'T YET GONE ON THE MARKET ALTHOUGH DOWNTOWN VACANCIES HAVE BEEN SLOWLY RISING SINCE THE THIRD QUARTER WHEN THEY DROPPED FOR THE FIRST TIME SINCE 1989 REALESTATE ANALYSTS SAY THIS TREND REFLECTS THE LINGERING EFFECTS OF CORPORATE DOWNSIZING THAT APPEARS TO BE SLOWING IN MANY PARTS OF THE COUNTRY THE VACANCIES THEY SAID ARE LIKELY TO RISE SOMEWHAT MORE IN ENSUING QUARTERS BEFORE BEGINNING A SLOW GRADUAL DECLINE THE DOWNTOWN OFFICE MARKET IS STILL SO GLUTTED THAT FEW ANALYSTS EXPECT SUPPLY TO FALL IN LINE WITH DEMAND BEFORE THE END OF THE CENTURY THOUGH THE LONG PLUNGE IN OFFICE VALUES APPEARS TO HAVE FINALLY BOTTOMED WITH OFFICE RENTALS DOWN ROUGHLY 30 FROM THEIR 1980S PEAK MORE SMALL BUSINESSES ARE TAKING ON SPACE THAT THEY COULDN'T BEFORE ADDED STAN ROSS MANAGING PARTNER OF KENNETH LEVENTHAL & CO A LOS ANGELESBASED ACCOUNTING AND CONSULTING FIRM I THINK THERE IS MORE OF A STABILIZATION IN MARKETS THAT WERE SOFT BEFORE MR ROSS SAID CITING NEW YORK AND DENVER AS EXAMPLES ANOTHER POSITIVE FOR THE OFFICE MARKET IS THAT NEW CONSTRUCTION HAS FALLEN TO NEARLY NOTHING AS BANKS REFUSE TO LEND IN THE FIRST QUARTER FOR INSTANCE CUSHMAN & WAKEFIELD REPORTS THAT JUST 40000 SQUARE FEET OF NEW DOWNTOWN SPACE WAS ADDED NATIONWIDE THAT'S EQUAL TO JUST ONE AVERAGE SUBURBAN OFFICE COMPLEX IN THE YEAREARLIER FIRST QUARTER CUSHMAN & WAKEFIELD SAID 56 MILLION SQUARE FEET WAS ADDED THE GOOD NEWS IS THAT NOTHING IN COMMERCIAL REAL ESTATE WILL GET FINANCED IN THE NEAR FUTURE MR BINSWANGER SAID THAT PUTS YOU IN A POSITION WHERE A LITTLE BIT OF LEASED SPACE CAN HAVE A LARGE EFFECT A GLUT OF SUBLEASED SPACE HOWEVER LARGELY NEGATES THE BENEFIT OF STALLED CONSTRUCTION FOR NOW IN MANY DOWNTOWN BUILDINGS TENANTS HAVE VACATED SPACE BUT ARE STILL PAYING THE RENT WHILE THEY SEARCH FOR SOMEONE TO TAKE THEIR PLACE THIS SUBLEASED SPACE IS OFTEN CHEAPER THAN THE GOING RATE WHICH FURTHER DEPRESSES RENTS WHAT'S MORE MANY TENANTS WHO SIGNED LEASES FIVE YEARS AGO ARE COMING UP FOR RENEWAL AND THEY ARE IN THE POSITION TO BARGAIN FOR CONCESSIONS THAT INCLUDE SUBSTANTIAL DISCOUNTS AND EVEN A FEW MONTHS OF FREE RENT THAT WILL DRIVE RENTS DOWN FURTHER IN THE LONGER TERM OTHER PROBLEMS LOOM EVEN IF THE ECONOMY HEATS UP MARKEDLY CORPORATE OCCUPANCY COSTS ARE SO BURDENSOME THAT MANY COMPANIES PROBABLY WILL CONTINUE TRYING TO USE AS MUCH SPACE AS THEY CAN BY FITTING MORE EMPLOYEES INTO AN OFFICE SAID PAUL C REILLY NATIONAL DIRECTOR OF REAL ESTATE AND HOSPITALITY CONSULTING FOR KPMG PEAT MARWICK AN ACCOUNTING AND CONSULTING FIRM IN NEW YORK ANOTHER UNANSWERED QUESTION MR REILLY ADDED IS WHETHER THE TENANTS WHO FLED LOWERGRADE BUILDINGS TO HIGHERGRADE ONES DUE TO CHEAPENED RENTS WILL STAY WHEN RENTS BEGIN CLIMBING SOME HE SAID MIGHT IN FACT MOVE BACK TO SAVE LEAVING THEIR NEW QUARTERS VACANT AGAIN 9304200053 930420 BUSINESS BRIEF ZILOG INC CHIP MAKER'S 1STPERIOD NET INCREASES 84 TO A RECORD ZILOG INC REPORTED RECORD PROFIT AND SALES FOR ITS FISCAL FIRST QUARTER ENDED APRIL 4 CITING STRONG BOOKINGS AND SHIPMENTS IN ITS THREE MARKET AREAS WHICH INCLUDE DATA COMMUNICATIONS CONSUMER PRODUCTS AND CHIP PRODUCTS THE CAMPBELL CALIF MAKER OF CUSTOM CHIPS REPORTED FIRSTQUARTER NET INCOME ROSE 84 TO 58 MILLION OR 32 CENTS A SHARE FROM 32 MILLION OR 20 CENTS A SHARE IN THE YEAREARLIER FIRST PERIOD SALES CLIMBED 63 TO 48 MILLION FROM 294 MILLION A YEAR AGO THE COMPANY SAID THAT ITS CASH AND SHORT TERM INVESTMENTS INCREASED IN THE QUARTER TO 726 MILLION REFLECTING A 234 MILLION CONTRIBUTION FROM THE PUBLIC OFFERING OF ITS COMMON SHARES COMPLETED IN JANUARY OF THIS YEAR THIS COMPARES WITH CASH AND INVESTMENTS OF 53 MILLION A YEAR EARLIER THE COMPANY ADDED 9304200052 930420 BUSINESS BRIEF DR PEPPER/SEVENUP COS RECORD SOFTDRINK SALES LEAD TO FIRSTQUARTER PROFIT DR PEPPER/SEVENUP COS SAID THAT RECORD SOFTDRINK SALES ENABLED IT TO POST A PROFIT FOR THE FIRST QUARTER REVERSING A LOSS A YEAR EARLIER THE DALLAS SOFTDRINK MAKER REPORTED FIRSTQUARTER NET INCOME OF 31 MILLION OR FIVE CENTS A SHARE INCLUDING AN EXTRAORDINARY CHARGE OF 149 MILLION OR 26 CENTS A SHARE FOR DEBT RESTRUCTURING THAT COMPARES WITH A LOSS OF 811 MILLION OR 229 A SHARE A YEAR EARLIER THE LOSS INCLUDED A CHARGE OF 748 MILLION OR 211 A SHARE RELATED TO AN ACCOUNTING CHANGE FIRSTQUARTER REVENUE ROSE 6 TO 1708 MILLION THE COMPANY WHICH WENT PUBLIC IN JANUARY SAID ITS DR PEPPER BRAND SOFT DRINKS HAD RECORD SALES IN THE QUARTER WITH STRONG GROWTH IN SUPERMARKETS AND FASTFOOD RESTAURANTS WELCH'S SOFT DRINKS ALSO HAD A SIGNIFICANT INCREASE IN SALES DURING THE QUARTER FUELED BY NEW PACKAGING NEW FRANCHISING AND INCREASED RETAIL GROCERY DISTRIBUTION JOHN R ALBERS CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE SALES GAINS CAME EVEN AS THE SOFTDRINK INDUSTRY'S OVERALL GROWTH WAS BELOW HISTORICAL TRENDS 9304200051 930420 ROCKWELL TURNS IN A STRONG QUARTER AS DOES GRUMMAN BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL ROCKWELL INTERNATIONAL CORP POSTED A 38 RISE IN NET INCOME FOR ITS FISCAL SECOND QUARTER WHILE GRUMMAN CORP POSTED A 275 MILLION PROFIT COMPARED WITH A LARGE YEAREARLIER LOSS THAT REFLECTED AN ACCOUNTING CHANGE ROCKWELL'S NET INCOME OF 1369 MILLION OR 63 CENTS A SHARE FOR THE PERIOD ENDED MARCH 31 COMPARED WITH EARNINGS OF 99 MILLION OR 45 CENTS A SHARE IN THE YEAREARLIER PERIOD SALES SLIPPED TO 27 BILLION FROM 28 BILLION A YEAR AGO DONALD R BEALL ROCKWELL'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER ATTRIBUTED HIGHER EARNINGS TO STRONGER MARKETS FOR THE COMPANY'S INDUSTRIAL AUTOMATION AND TELECOMMUNICATIONS PRODUCTS AND TO IMPROVED CONTRACT PERFORMANCE AND COST CUTTING IN ROCKWELL'S AEROSPACE UNIT EARNINGS FOR THE GRAPHICS SEGMENT WHICH MAKES PRINTING PRESSES DECLINED FROM THE YEAREARLIER PERIOD A SPOKESMAN FOR THE SEAL BEACH CALIF AEROSPACE ELECTRONICS AND MACHINERYMANUFACTURING CONCERN SAID GRAPHICS RESULTS WERE DEPRESSED BY A SMALL CHARGE IN THE QUARTER FOR SEGMENT CONSOLIDATION HE WOULDN'T GIVE THE AMOUNT OF THE CHARGE BUT NOTED THAT IT WAS IN ADDITION TO A 186 MILLION RESTRUCTURING CHARGE TAKEN IN THE FOURTH QUARTER OF FISCAL 1991 GRUMMAN REPORTED FIRSTQUARTER NET INCOME OF 275 MILLION OR 81 CENTS A SHARE COMPARED WITH A NET LOSS OF 1675 MILLION OR 499 A SHARE WHICH REFLECTED A 198 MILLION CHARGE FROM AN ACCOUNTING CHANGE FOR POSTRETIREMENT BENEFITS THE COMPANY HAD INCOME FROM CONTINUING OPERATIONS IN THE LATEST QUARTER OF 342 MILLION OR 1 A SHARE BEFORE A 67 MILLION LOSS FROM DISCONTINUED OPERATIONS INCOME FROM CONTINUING OPERATIONS COMPARED WITH LAST YEAR'S 292 MILLION OR 85 CENTS A SHARE BEFORE 125 MILLION IN INCOME FROM DISCONTINUED OPERATIONS AND THE LARGE ACCOUNTING CHARGE GRUMMAN WHICH RESTATED ITS 1992 RESULTS TO REFLECT ITS DISCONTINUED INSURANCE BUSINESS SAID SALES FELL 8 TO 8718 MILLION FROM 9505 MILLION GRUMMAN CHAIRMAN RENSO CAPORALI PREDICTED THAT SALES FOR THE YEAR WOULD BE ABOUT EVEN WITH LAST YEAR'S 35 BILLION DESPITE THE FIRSTQUARTER DECLINE MR CAPORALI ALSO SAID HE EXPECTED GRUMMAN'S FIRSTQUARTER EARNINGS TO BE THE COMPANY'S STRONGEST THIS YEAR THE BETHPAGE NY AEROSPACE CONCERN HAS STRENGTHENED ITS BALANCE SHEET BY REDUCING TOTAL DEBT TO 3619 MILLION FROM 5916 MILLION A 39 DECREASE INTEREST EXPENSES SHRUNK 29 TO 111 MILLION FROM 157 MILLION IN THE YEARAGO QUARTER ANALYSTS PRAISED BOTH GRUMMAN AND ROCKWELL FOR THEIR PERFORMANCES IN THE DEFENSEINDUSTRY DOWNTURN BOTH COMPANIES HAVE BEEN VERY AGGRESSIVE IN CUTTING COSTS SAID PHIL FRIEDMAN OF MORGAN STANLEY & CO WHO POINTED TO GRUMMAN'S DEBTREDUCING MEASURES AS THE REAL STORY BEHIND ITS STRONG RESULTS 9304200050 930420 BUSINESS BRIEF CITIZENS FIRST BANCORP BANKING CONCERN REPORTS HUGE RISE IN 1STPERIOD NET CITIZENS FIRST BANCORP REPORTED A HUGE JUMP IN FIRSTQUARTER EARNINGS ATTRIBUTABLE BOTH TO BETTER BANKING RESULTS AND TO A GAIN FROM ADOPTION OF A NEW INCOMETAX ACCOUNTING RULE THE GLEN ROCK NJ BANKING COMPANY REPORTED NET OF 149 MILLION OR 30 CENTS A SHARE COMPARED WITH 523000 OR TWO CENTS A SHARE IN THE YEARAGO QUARTER AVERAGE SHARES OUTSTANDING WERE 50 MILLION IN THE QUARTER COMPARED WITH 214 MILLION A YEAR AGO THE RESULT OF A SHAREHOLDER RIGHTS OFFERING LAST SEPTEMBER THE RECENT QUARTER'S RESULTS INCLUDED 77 MILLION IN EARNINGS FROM BANKING OPERATIONS AND 72 MILLION FROM ADOPTION OF THE ACCOUNTING RULE ALLAN D NICHOLS CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID NET INTEREST INCOME AFTER LOANLOSS PROVISIONS ROSE 37 TO 53 MILLION LARGELY BECAUSE OF BETTER INTEREST MARGINS FEE INCOME FROM NONLOAN SERVICES ROSE 51 TO 16 MILLION 9304200049 930420 TEXAS DEVASTATION AS WACO CRISIS ENDS CLINTON'S LEADERSHIP COMES UNDER SCRUTINY DEATHS AT CULT'S COMPOUND COULD BECOME A SYMBOL THAT HURTS HIS IMAGE A BUG INSIDE THE COMPOUND BY JOE DAVIDSON AND CHRISTI HARLAN STAFF REPORTERS OF THE WALL STREET JOURNAL THE FIRE THAT ENGULFED THE BRANCH DAVIDIAN COMPOUND NEAR WACO TEXAS YESTERDAY BURNED A DEEP PUBLIC IMAGE OF TRAGEDY AND OF THINGS GONE WRONG THE HOLOCAUST ENDING A LONG STANDOFF WITH MEMBERS OF THE RELIGIOUS SECT IS BELIEVED TO HAVE KILLED 86 PEOPLE INCLUDING LEADER DAVID KORESH AND 24 CHILDREN NINE PEOPLE ARE KNOWN TO HAVE SURVIVED ALTHOUGH AUTHORITIES SAY THE CULT MEMBERS THEMSELVES SET THE FIRE THE TRIGGER WAS A TEARGAS ATTACK BY FEDERAL AGENTS AS A RESULT THE WACO HORROR QUICKLY RAISED QUESTIONS ABOUT THE CLINTON ADMINISTRATION'S HANDLING OF THE SIEGE THE ANSWERS AREN'T IN YET BUT THE BIGGEST RISK FOR PRESIDENT CLINTON IS THAT THE INFERNO COULD CREATE AN IMAGE OF BUMBLING OR FAILURE IN THE PUBLIC'S MIND UNTIL YESTERDAY MR CLINTON UNDERSTANDABLY HADN'T GIVEN THE 51DAY WACO STANDOFF MUCH ATTENTION FOCUSING INSTEAD ON GETTING HIS ECONOMIC PLAN THROUGH CONGRESS AND A RUSSIAN AID PROGRAM INTO PLACE THE PRESIDENT SAID YESTERDAY THAT WHILE HE KNEW OF THE PLANNED ASSAULT ON THE COMPOUND THE TACTICAL DECISIONS WERE MADE BY ATTORNEY GENERAL JANET RENO I KNEW IT WAS GOING TO BE DONE BUT THE DECISIONS WERE ENTIRELY HERS HE SAID DURING A MORNING PHOTO SESSION IN THE WHITE HOUSE ROSE GARDEN AS IT TURNED OUT THOSE DECISIONS WERE BASED ON A MISCALCULATION JUSTICE DEPARTMENT AND FEDERAL BUREAU OF INVESTIGATION OFFICIALS SAID THEIR DECISION TO PUMP TEAR GAS INTO THE COMPOUND WAS NOT INTENDED TO PROVOKE A SHOWDOWN WITH CULT MEMBERS IN A PRESS CONFERENCE MS RENO SAID THAT THE FBI'S ACTION WASN'T SEEN AS A DDAY BUT AS A MOVE TO INCREASE THE PRESSURE AND BRING ABOUT SERIOUS NEGOTIATION TO RESOLVE THE SIEGE PEACEFULLY ALTHOUGH MR CLINTON APPEARED TO BE DISTANCING HIMSELF FROM THE FOULUP MS RENO WAS QUICK TO ACCEPT THE RESPONSIBILITY THE BUCK STOPS WITH ME SHE SAID GOVERNMENT SOURCES SAID A BUG PLANTED INSIDE THE COMPOUND HAD SHOWN THAT MR KORESH WAS BECOMING INCREASINGLY VIOLENT AGENTS SAID THEY WERE CONVINCED THAT HE WOULDN'T GIVE HIMSELF UP PEACEFULLY AND THAT HE EVEN HOPED TO DRAW LAWENFORCEMENT OFFICERS INTO A BLOODY SHOOTOUT MEANWHILE GOVERNMENT OFFICIALS CONCEDED THAT AGENTS WERE TIRED AND FRUSTRATED AFTER THE LONG SIEGE AT THE COMPOUND MS RENO SAID THE WEARINESS OF THE AGENTS FOR WHOM THERE WAS NO RELIEF CREW WAS A FACTOR IN THE DECISION TO GAS THE COMPOUND ANOTHER MISCALCULATION INVOLVED THE EXPECTATION THAT AFTER THE TEARGAS ATTACKS CULT MEMBERS WOULD GIVE UP EVEN IF MR KORESH STOOD HIS GROUND IN WACO FBI SPOKESMAN BOB RICKS SAID AGENTS HOPED THAT WOMEN WOULD GRAB THE CHILDREN AND FLEE THAT BET ON THE CULTISTS' MATERNAL INSTINCTS TURNED OUT TO BE WRONG HE CONCEDED ADDING THAT THE CHILDREN WEREN'T SPARED THE DAY'S DEVASTATION AND DEATH MR KORESH HAD TALKED OF SUICIDE AT ONE POINT WEEKS AGO FBI OFFICIALS SAID THE CULT LEADER GATHERED FOLLOWERS IN THE COMPOUND CHAPEL KISSED THE CHILDREN GOODBYE AND SAID HE PLANNED TO WALK OUT OF THE BUILDING AND BLOW HIMSELF UP WITH HAND GRENADES AT THE LAST SECOND HE CHICKENED OUT SAID MR RICKS EVENTS MONDAY BEGAN BEFORE DAWN WHEN FEDERAL AGENTS NOTIFIED THE COMPOUND'S NEIGHBORS THAT IT WOULD END TODAY SAID MELANIE FELTON A NEARBY RANCHER AT 555 AM ACCORDING TO THE ASSOCIATED PRESS THE FBI TELEPHONED THE COMPOUND AND TOLD STEVE SCHNEIDER CONSIDERED MR KORESH'S TOP LIEUTENANT THAT AGENTS WOULD GAS THE COMPLEX UNLESS CULT MEMBERS SURRENDERED IMMEDIATELY MR SCHNEIDER HUNG UP A COMBAT ENGINEERING VEHICLE CALLED AN M60 THEN MOVED TO THE SOUTHWEST CORNER OF THE COMPOUND BROKE A HOLE IN THE WALL AND STARTED GASSING AT LEAST 80 ROUNDS OF GUNFIRE CAME FROM THE COMPOUND IN AN INITIAL VOLLEY AGENTS CONTINUED RIPPING HOLES IN BUILDINGS THROUGHOUT THE MORNING AND MR RICKS SPOKE CALMLY AT A 1030 AM SESSION WITH REPORTERS ABOUT THE DECISION TO FORCE OUT MR KORESH AND HIS FOLLOWERS MR RICKS SAID AUTHORITIES BELIEVED THE TEARGASSING WAS THE BEST WAY TO AVERT A POSSIBLE MASS SUICIDE BECAUSE IT WOULD CAUSE CONFUSION INSIDE THE COMPOUND BUT BARELY 90 MINUTES LATER BILLOWING FLAMES AND SMOKE BEGAN SPEWING FROM THE SPRAWLING RURAL COMPOUND FIRE DEPARTMENT UNITS NOT ON HAND THROUGH THE EARLY ASSAULT HAD TO BE SUMMONED AND ARRIVED ABOUT 1230 PM WHEN MOST OF THE BUILDINGS WERE ALREADY GUTTED HAD FIREFIGHTERS BEEN ON HAND MR RICKS SAID GUNFIRE FROM THE COMPOUND AND EXPLOSIVES STORED THERE WOULD HAVE PUT THEM AT RISK THE FBI SAID THE FIRE WHICH STARTED SIMULTANEOUSLY IN THREE SEPARATE LOCATIONS IN THE COMPOUND WAS PROBABLY FUELED BY KEROSENE OR SOME OTHER LANTERN FUEL ONE SURVIVOR TOLD AUTHORITIES THAT PEOPLE INSIDE THE COMPOUND LIT THE FIRE THE SURVIVOR SAID THAT AS HE LEFT ONE OF THE BUILDINGS HE COULD HEAR ABOVE HIM PEOPLE SAYING THE FIRE'S BEEN LIT THE FIRE'S BEEN LIT' SAID JUSTICE DEPARTMENT SPOKESMAN CARL STERN FOR MR CLINTON THE DANGER IS THAT THE WACO ASSAULT WILL BECOME AN ENDURING SYMBOL FOR ANY ADMINISTRATION HIGHLY PUBLICIZED SUCCESSES SUCH AS PRESIDENT REAGAN'S VICTORY OVER THE AIR TRAFFIC CONTROLLERS' UNION CAN CREATE AN AURA OF INVINCIBILITY BUT HIGHPROFILE FAILURES SUCH AS PRESIDENT CARTER'S EFFORT TO RESCUE US HOSTAGES IN IRAN CAN BE POLITICALLY DEVASTATING AND ALL EVENTS ARE MAGNIFIED DURING AN ADMINISTRATION'S FIRST 100 DAYS THE FIRST 100 DAYS HAS BEEN USED AS A MEASURING STICK OF THE PRESIDENT'S SUCCESS SAID JAMES THURBER A PRESIDENTIAL EXPERT FROM AMERICAN UNIVERSITY WHEN EVENTS LIKE THE BAY OF PIGS AND PATCO THE AIR CONTROLLERS STRIKE HAPPENED THEY HAD A LASTING EFFECT ON THE ADMINISTRATION AND THE PRESIDENTS BUT HE ADDED I CAN'T SAY WHETHER THIS WILL OR NOT OTHERS POINTED OUT THAT A LAWENFORCEMENT DEBACLE ISN'T AS DAMAGING AS A FAILURE INVOLVING NATIONAL SECURITY THIS IS NO BAY OF PIGS ASSERTED HARRISON HICKMAN A DEMOCRATIC POLLSTER IT'S NOT FOREIGN POLICY AND IT'S NOT SOMETHING THE PRESIDENT WOULD BE HELD PRIMARILY RESPONSIBLE FOR ON SUNDAY PRESIDENT CLINTON TALKED BY TELEPHONE TO MS RENO TO REVIEW THE SITUATION THE ATTORNEY GENERAL SAID SHE ADVISED THE PRESIDENT BUT I DIDN'T ADVISE HIM AS TO THE DETAILS BUT HE WAS TOLD ABOUT WHAT WAS INTENDED IN GENERAL AND DIDN'T RAISE ANY OBJECTIONS SECRETARY LLOYD BENTSEN OF THE TREASURY DEPARTMENT WHICH INCLUDES THE BUREAU OF ALCOHOL TOBACCO AND FIREARMS THE AGENCY THAT LOST FOUR MEN IN THE INITIAL ASSAULT WAS ALSO BRIEFED OVER THE WEEKEND ON THE OPERATION HE WASN'T RESPONSIBLE FOR SIGNING OFF ON IT HOWEVER IT'S AN FBI OPERATION EXPLAINED A TREASURY SPOKESMAN THE FBI IS IN THE JUSTICE DEPARTMENT WHICH ANSWERS TO THE PRESIDENT AFTER THE COMPOUND STARTED TO BURN YESTERDAY THE WHITE HOUSE ISSUED A STATEMENT SAYING THE FIRES HADN'T BEEN SET BY FEDERAL OFFICERS ACCORDING TO THE FBI'S MR RICKS AGENTS WITNESSING THE RAPIDLY SPREADING CONFLAGRATION SAID OH MY GOD THEY'RE KILLING THEMSELVES AS FOR THE FACT THAT FIRE ENGINES DIDN'T ARRIVE FOR SOME 30 MINUTES OFFICIALS SAID THEY DIDN'T ANTICIPATE FIRES BECAUSE THE TEAR GAS WASN'T FLAMMABLE AND BECAUSE THEY DIDN'T PLAN TO USE FIREARMS IN THE OPERATION THE PIVOTAL QUESTION SURROUNDING THE TRAGEDY IS WHY FEDERAL AGENTS DECIDED TO STEP UP THE PRESSURE ON THE CULT AFTER WEEKS OF STANDOFF IN THE WAKE OF THE INITIAL ATTACK PRESIDENT CLINTON INSISTED ON KEEPING ABREAST OF DEVELOPMENTS IN WACO AND CAUTIONED AGAINST ILLADVISED ATTACKS EARLY ON SECRETARY BENTSEN WAS QUOTED SAYING WE WERE ALWAYS CONCERNED ABOUT A JONESTOWN POSSIBILITY REFERRING TO THE MASS SUICIDE OF THE REV JIM JONES'S RELIGIOUS CULT IN GUYANA SOME YEARS AGO UNTIL YESTERDAY FEDERAL AGENTS APPEARED TO BE PLAYING A GAME OF ENDURANCE WE HAD ANTICIPATED THEY WOULD BE WAITED OUT SAID REP DON EDWARDS A CALIFORNIAN DEMOCRAT WHO HEADS A HOUSE SUBCOMMITTEE THAT HAS JURISDICTION OVER THE FBI AND WHICH IS LIKELY TO HOLD HEARINGS ON THE WACO DISASTER THAT CERTAINLY SEEMED LIKE A GOOD IDEA TO US BUT SOME LAWENFORCEMENT AGENTS SAY THEY HAD GROWN INCREASINGLY ALARMED AT MR KORESH'S THREATS OF VIOLENCE SOME OF WHICH WERE PICKED UP BY THE EAVESDROPPING EQUIPMENT AGENTS HAD PUT IN PLACE MANY SUCH THREATS WERE RELAYED TO FBI AGENTS OVER A TELEPHONE LINE MS RENO SAID THE DECISION TO TRY TO END THE STANDOFF WAS INFLUENCED BY REPORTS THAT CHILDREN HAD BEEN SEXUALLY ABUSED AND THAT BABIES WERE BEATEN INSIDE THE COMPOUND AND A SPOKESMAN FOR THE ATF SAID AGENTS HAD GROWN FRUSTRATED WITH THE WAITING GAME WHAT HAS WAITING PRODUCED NOTHING IN THE DAYS LEADING UP TO THE TRAGEDY CONDITIONS NEAR THE COMPOUND RESEMBLED A WAR ZONE WITH TENTS CONCERTINA WIRE AND ARMORED VEHICLES ALONG PUBLIC STREETS AND HIGHWAYS PROTESTERS HAD APPEARED WITH PLACARDS DENOUNCING FEDERAL AGENTS AS BLACKBOOTED BLACKJACKETED MURDERERS TRAMPLING BOTH RELIGIOUS FREEDOM AND THE RIGHT TO BEAR ARMS AGENTS ANGRY AT CRITICAL NEWS MEDIA ACCOUNTS AT ONE POINT USED AN ARMORED FIGHTING VEHICLE TO FLATTEN A REPORTER'S CAR THAT WAS ABANDONED AT THE COMPOUND AS THE WEEKS WORE ON THE UNCERTAINTY BEGAN TO CHAFE EVEN FOR SOME AGENTS FAR REMOVED FROM WACO FOR THOSE ON THE FRONT LINES THE PRESSURE HAD TO BE WORSE MS RENO SAID YESTERDAY THAT THE FBI'S HOSTAGENEGOTIATION TEAM NEEDED TO BE RELIEVED IT JUST SEEMS TO ME LAW ENFORCEMENT RAN OUT OF PATIENCE SPECULATED REP HENRY HYDE A REPUBLICAN FROM ILLINOIS THE CHILDREN AND THE WOMEN AND THE LOSS OF HUMAN LIVES WASN'T THERE SOME OTHER WAY AND WHY WASN'T IT USED PRESIDENT CLINTON AND HIS AIDES APPEARED TO BE TAKING LITTLE RESPONSIBILITY FOR THE FIASCO REINFORCING THE PRESIDENT'S COMMENTS HIS SPOKESMAN GEORGE STEPHANOPOULOS ALSO POINTED TO MS RENO THE ATTORNEY GENERAL INFORMED THE PRESIDENT SUNDAY THAT THEY WERE PLANNING ON GOING AHEAD WITH THIS KIND OF AN OPERATION BUT IT'S A DECISION BY THE ATTORNEY GENERAL AND THE FBI MR STEPHANOPOULOS SAID WHEN PRESSED ABOUT WHO WAS RESPONSIBLE HE SAID CERTAINLY MR CLINTON IS RESPONSIBLE BUT IT'S THE ATTORNEY GENERAL AND THE FBI WHO HAVE OPERATIONAL CONTROL OVER THIS HE ADDED THE ATTORNEY GENERAL LAID OUT THE ARGUMENT AND THE PRESIDENT MADE NO OBJECTION FBI DIRECTOR WILLIAM SESSIONS ALREADY UNDER SIEGE OVER ALLEGATIONS OF MISUSING PERQUISITES OF HIS OFFICE DIDN'T SHOW AT MS RENO'S PRESS CONFERENCE HE DID APPEAR LATER ON CNN WHERE HE DENIED AMONG OTHER THINGS THAT THE FBI HAD RUN OUT OF PATIENCE MS RENO SAID THE TEARGAS ATTACK WAS THE FBI'S PREFERRED TACTIC FOR BRINGING THE SIEGE TO A CLOSE ALTHOUGH OTHER OPTIONS WERE PRESENTED TO HER BUREAUCRATIC FINGERPOINTING IS INEVITABLE IN SUCH A SITUATION THE ATF WAS IN CHARGE OF THE RAID SEVEN WEEKS AGO WHEN THE AGENCY HOPED TO SERVE WARRANTS TO SEARCH FOR ILLEGAL MACHINE GUNS AND HAND GRENADES WHILE THE ATF HAD SUBSTANTIAL ASSISTANCE WITH HELICOPTERS BORROWED FROM THE NATIONAL GUARD AND BLOODHOUNDS LENT BY THE TEXAS PRISON SYSTEM THE FBI WASN'T CALLED TO THE SCENE UNTIL AFTER THE TRUCE FOLLOWING THE SHOOTOUT LAPSED INTO A STANDOFF THE FBI HAS BEEN IN CHARGE EVER SINCE WITH ATF TAKING A SUBORDINATE ROLE MS RENO SAID ONE FACTOR IN DECIDING TO HIT THE COMPOUND WAS THE EXTENDED TIME THE HOSTAGE RESCUE TEAM HAD BEEN IN PLACE AFTER SEVEN WEEKS OF STANDOFF THE TEAM NEEDED TIME OFF SHE SAID FBI EXPERTS SHE EXPLAINED TOLD HER THE HOSTAGE TEAM COULDN'T STAY PUT INDEFINITELY THEY WERE TOTALLY FRUSTRATED SHE SAID THEY DID NOT THINK HE WOULD EVER COME OUT ALL OF THE FBI'S 50MEMBER HOSTAGE RESCUE TEAM WHICH IS BASED IN QUANTICO VA WAS ASSIGNED TO THE WACO DISASTER HOW LONG CAN YOU PUT PEOPLE OUT ON A DETAIL WITHOUT GIVING THEM SOME RELIEF AN FBI OFFICIAL ASKED JEFFREY H BIRNBAUM CONTRIBUTED TO THIS ARTICLE FEB 28 ABOUT 100 BUREAU OF ALCOHOL TOBACCO AND FIREARMS AGENTS STORM THE COMPOUND OF BRANCH DAVIDIAN LEADER DAVID KORESH FOUR AGENTS ARE KILLED AND OTHERS WOUNDED IN THE 45MINUTE BATTLE KORESH LATER SAYS HE AND OTHERS WERE WOUNDED AND THAT HIS 2YEAROLD DAUGHTER WAS KILLED MARCH 1 TEN CHILDREN ARE RELEASED AND KORESH SPEAKS ON RADIO SAYING THE GUN BATTLE WAS UNNECESSARY MARCH 2 TWO WOMEN AND SIX CHILDREN ARE RELEASED KORESH SAYS HE WILL SURRENDER AFTER A LENGTHY SERMON IS BROADCAST ON RADIO AND TV BUT HE DOES NOT KEEP AGREEMENT MARCH 423 TWELVE MORE ADULTS AND TWO MORE CHILDREN LEAVE THE COMPOUND MARCH 24 KORESH BREAKS OFF NEGOTIATIONS SAYING THE SECT IS CELEBRATING A HIGH HOLY DAY MARCH 28 KORESH RESUMES NEGOTIATIONS KORESH ALSO TALKS BY PHONE WITH DICK DEGUERIN AN ATTORNEY HIRED BY KORESH'S MOTHER MARCH 31 FBI HALTS ITS NEGOTIATIONS WITH THE SECT WHILE DEGUERIN HAS A THIRD DAY OF PRIVATE TALKS WITH KORESH APRIL 3 FBI SAYS KORESH APPEARS CLOSER TO ENDING STANDOFF BUT IS STILL WAITING ON A SIGN FROM GOD APRIL 16 FBI AGENT SAYS THE FBI WON'T WAIT FOREVER ON KORESH APRIL 19 KORESH AND MOST OF HIS FOLLOWERS BELIEVED TO INCLUDE TWO DOZEN CHILDREN PERISH IN FIRES STARTED BY THE CULT MEMBERS AFTER THE FBI SMASHED INTO THE COMPOUND AND PUMPED TEAR GAS INTO THE BUILDINGS 9304200048 930420 BUSINESS BRIEF UNION BANK FIRSTQUARTER NET ROSE 68 BANK SEEKS SALE OF PROPERTY UNION BANK SAID NET INCOME IN ITS FIRST QUARTER ROSE 68 ON IMPROVING INTEREST MARGINS AND REVENUES FROM SERVICE CHARGES THE SAN FRANCISCO BANK SAID NET FOR THE QUARTER WAS 23 MILLION OR 62 CENTS A SHARE COMPARED WITH YEAREARLIER NET OF 137 MILLION OR 37 CENTS A SHARE UNION BANK ALSO SAID IT IS PURSUING THE SALE OF UNDERPERFORMING CALIFORNIA REAL ESTATE WITH A CURRENT AGGREGATE BOOK VALUE OF 80 MILLION THE REAL ESTATE HAS BEEN RECLASSIFIED AS ASSETS HELD FOR SALE RESULTING IN A 64 MILLION CHARGE IN THE QUARTER AGAINST OPERATING EARNINGS A 1 MILLION CHARGE AGAINST ITS LOAN LOSS RESERVE AND A 775 MILLION REDUCTION IN NONPERFORMING ASSETS UNION SAID IN ADDITION UNION BANK SAID IT WILL OFFER ABOUT 100 MILLION OF NEWLY ISSUED COMMON STOCK AS OF MARCH 31 UNION BANK HAD 324 MILLION SHARES OUTSTANDING OF WHICH 7613 IS OWNED BY THE BANK OF TOKYO LTD UNION SAID THE BANK OF TOKYO DOESN'T INTEND TO PARTICIPATE IN THE OFFERING OF ADDITIONAL STOCK 9304200047 930420 TURF BATTLE WITH BANKS PROMPTS MERRILL TO END TYING' IN SOME LOAN CONTRACTS BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RATHER THAN GIVE THE BANKING INDUSTRY AMMUNITION IN ITS TURF BATTLE WITH WALL STREET MERRILL LYNCH & CO QUIETLY HAS STOPPED PRESSING SOME OF ITS SMALLER CORPORATE CLIENTS FOR ADDITIONAL BUSINESS IN ITS LOAN AGREEMENTS THE PRACTICE CALLED TYING BY SOME IN THE INDUSTRY COULD HAVE PROVED EMBARRASSING TO THE SECURITIES INDUSTRY WHICH HAS ACCUSED COMMERCIAL BANKS OF STRONGARMING THEIR LENDING CLIENTS IN SIMILAR FASHION WALL STREET WHICH WANTS TO KEEP BANKS OUT OF THE UNDERWRITING BUSINESS SAYS BANKS HAVE A COMPETITIVE ADVANTAGE WHEN THEY URGE LENDING CLIENTS TO USE BANKS FOR PUBLIC SECURITIES OFFERINGS ALSO THE STAKES ARE HIGH WALL STREET EARNED A RECORD 208 BILLION IN UNDERWRITING FEES IN THE FIRST QUARTER HALF OF WHICH WAS EARNED BY ONLY FOUR FIRMS IN WHAT MIGHT APPEAR AS A CASE OF THE POT CALLING THE KETTLE BLACK MERRILL LYNCH WALL STREET'S LARGEST FIRM TOLD AN INDIANAPOLIS CLIENT IN A LETTER DATED FEBRUARY 24 THAT IT WOULD MAKE A 750000 WORKING CAPITAL LOAN ON CERTAIN TERMS AND CONDITIONS THOSE CONDITIONS WOULD BE BASED ON THE ASSUMPTION THAT THE BORROWER AGREE TO MAINTAIN A SUBSTANTIAL ACCOUNT RELATIONSHIP WITH MERRILL OR OTHERWISE UTILIZE SUBSTANTIAL FINANCIAL SERVICES OFFERED BY THE FIRM THE LANGUAGE DOES RAISE SOME POTENTIAL FOR CONFLICTOFINTEREST ISSUES THAT NEED TO BE ADDRESSED SAID RICHARD ROBERTS A COMMISSIONER OF THE SECURITIES AND EXCHANGE COMMISSION MR ROBERTS WHO HELPED BRING THE TYING ISSUE TO THE ATTENTION OF BANK REGULATORS SAID NO DOUBT THE SAME CONFLICTS CAN EXIST ON THE SECURITIES SIDE THAT EXIST ON THE BANKING SIDE I WOULD BE LEERY AS A CUSTOMER OF ANY REQUIREMENT OF BUNDLING SERVICES INITIALLY A MERRILL LYNCH SPOKESMAN SAID THAT THE LANGUAGE IN QUESTION IS COMPLETELY PROPER AND STANDARD IN ALL ITS LOAN AGREEMENTS BUT ON WEDNESDAY MERRILL OFFICIALS SAID THE FIRM STOPPED USING THE LANGUAGE A COUPLE OF MONTHS AGO AFTER THE TYING ISSUE WAS RAISED AGAINST COMMERCIAL BANKS IT'S BOUND TO CREATE SOME CONFUSION SO WE'VE STOPPED IT SAID RICHARD HANSON EXECUTIVE VICE PRESIDENT AT MERRILL LYNCH BUSINESS FINANCIAL SERVICES THE LANGUAGE IS NOT IN ANY SENSE TRYING TO TIE UP OUR CLIENTS WITH SOME SORT OF AGREEMENT HOWEVER HE SAID THAT WHILE THE LANGUAGE MAY NOT BE PRESENT WE DON'T WANT TO LEND WITHOUT HAVING A BASIC RELATIONSHIP FOR BANKS SUCH EXPLICIT TIEIN ARRANGEMENTS VIOLATE A 1972 LAW PROHIBITING THEM FROM LINKING THESE SERVICES TO DATE BANK REGULATORS HAVE FOUND FEW INSTANCES OF TYING THOSE THAT HAVE BEEN FOUND AFFECTED MUNICIPAL ISSUERS RATHER THAN CORPORATIONS SECURITIES FIRMS HAVE A MUCH BROADER LEGAL TEST THEY COULD VIOLATE ANTITRUST LAWS ONLY IF THEY'RE TYING PRODUCTS THAT ARE UNIQUE AND NOT AVAILABLE FROM OTHER FIRMS THE STANDARDS THAT APPLY TO SECURITIES FIRMS ARE MUCH MORE FLEXIBLE SAID GILBERT SCHWARTZ A BANKING ATTORNEY AT SKADDEN ARPS SLATE MEAGHER & FLOM BUT SECURITIES FIRMS ARE DOING WHAT THEY'RE COMPLAINING ABOUT LAWYERS NOTE THAT A COMMON PRACTICE IN THE 1980S WAS THE EXTENSION OF BRIDGE LOANS BY SECURITIES FIRMS TO COMPANIES FOR ACQUISITIONS IN RETURN FOR A PROMISE TO USE THE FIRM FOR A BOND DEAL THAT WOULD PAY BACK THE LOAN THE SECURITIES INDUSTRY ASSOCIATION WHICH ASKED ITS MEMBERS TO FIND EVIDENCE OF WRONGDOING BY BANKS SAID SECURITIES FIRMS ARE FULLY WITHIN THEIR RIGHTS TO LEGALLY DEMAND BUSINESS BUT BANKS BECAUSE OF FEDERAL DEPOSIT INSURANCE HAVE A COMPETITIVE ADVANTAGE AND THEREFORE MUST ABIDE BY STRICTER RULES THE SIA SAID IT'S ALL RIGHT TO LEVERAGE YOUR OWN CAPITAL TO GET OTHER SERVICES FROM A CLIENT SAID STEVEN JUDGE VICE PRESIDENT AT THE SIA TO THE BEST OF MY KNOWLEDGE IT'S NOT A PROBLEM THE SPAT BETWEEN THE TWO INDUSTRIES COMES AT A TIME WHEN MORE BANKS ARE NIPPING AT THE HEELS OF THE SECURITIES INDUSTRY CITICORP AND BANKERS TRUST NEW YORK CORP ARE ACTIVE IN DEBT UNDERWRITING AND JP MORGAN & CO IS BREAKING INTO THE TOP RANKS IN BOTH THE DEBT AND EQUITY UNDERWRITING BUSINESS CHEMICAL BANKING CORP THE NATION'S NUMBER ONE SYNDICATOR OF BANK LOANS IS SOON EXPECTED TO RECEIVE REGULATORY APPROVAL TO UNDERWRITE CORPORATE DEBT SECURITIES SIMILARLY SECURITIES FIRMS ARE DIPPING THEIR TOES INTO COMMERCIAL BANKING ASIDE FROM MERRILL LYNCH WHICH HAS 500 MILLION IN SMALL AND MIDSIZED BUSINESS LOANS OUTSTANDING OTHER FIRMS ARE BEGINNING TO ARRANGE LOANS TRADITIONALLY MADE BY BANKS LATE LAST YEAR AMERICAN EXPRESS CO'S LEHMAN BROTHERS SYNDICATED 35 MILLION IN BANK DEBT FOR IVEX PACKAGING CORP A CHICAGO COMPANY AS WELL AS A 165 MILLION BOND OFFERING THE LINES HAVE BLURRED SAID MR ROBERTS AND THAT IS WHY SOME BANKERS BELIEVE THE SECURITIES FIRMS SHOULD BE HELD TO SIMILAR STANDARDS WHATEVER THE RULES AND MARKET CUSTOMS ARE THEY SHOULD BE APPLIED CONSISTENTLY TO ALL FINANCIAL SERVICES COMPANIES SAID MARK PATTERSON MANAGING DIRECTOR AT BT SECURITIES CORP MR ROBERTS SAID THAT THE NEED FOR DIFFERENT STANDARDS IS REDUCED BECAUSE OF OVERLAPPING BUSINESSES BUT BECAUSE OF FEDERAL DEPOSIT INSURANCE THE SEC COMMISSIONER SAID BANKS SHOULD BE HELD TO HIGHER STANDARDS THERE IS SOME ABUSE BUT WE'VE BEEN UNABLE TO QUANTIFY IT MR ROBERTS SAID STILL HE ADMITTED IT IS DIFFICULT TO SEPARATE LEGITIMATE COMPLAINTS FROM COMPLAINTS FROM UNHAPPY COMPETITORS 9304200046 930420 BUSINESS BRIEF MICHAEL FOODS INC FIRSTPERIOD PROFIT FELL 62 FIRM PLANS STOCK BUYBACK MICHAEL FOODS INC SAID DIRECTORS APPROVED A BUYBACK OF UP TO 10 MILLION IN COMMON SHARES IN THE FACE OF THE STOCK'S DEPRESSED PRICE SEPARATELY THE COMPANY REPORTED A 62 DECLINE IN FIRSTQUARTER EARNINGS TO 511000 OR THREE CENTS A SHARE ON A 15 DECLINE IN SALES TO 1049 MILLION THAT COMPARES WITH EARNINGS OF 13 MILLION OR SEVEN CENTS A SHARE ON SALES OF 1065 MILLION A YEAR AGO MICHAEL FOODS STOCK WAS QUOTED AT 650 BEFORE YESTERDAY'S ANNOUNCEMENT AND CLOSED AT 6875 A SHARE UP 375 CENTS IN LATE TRADING ON THE NATIONAL OVER THE COUNTER MARKET A YEAR AGO SHARES WERE TRADING IN THE HIGH TEENS A SPOKESMAN FOR THE MINNEAPOLISBASED MAKER OF EGG MILK CHEESE AND POTATO PRODUCTS SAID THE BUYBACK PROBABLY WOULD BEGIN LATER THIS WEEK MICHAEL FOODS HAS ABOUT 195 MILLION SHARES OUTSTANDING 9304200045 930420 TECHNOLOGY & MEDICINE MERCK ELI LILLY AND WARNERLAMBERT POST HIGHER FIRSTQUARTER NET INCOME BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL THREE MAJOR PHARMACEUTICAL COMPANIES REPORTED FIRSTQUARTER NET INCOME AFFECTED BY WORLDWIDE PRESSURE ON DRUG PRICES CURRENCY TRANSLATIONS AND VARIOUS ACCOUNTING CHANGES MERCK & CO REPORTED A 10 RISE IN OPERATING PROFIT ALTHOUGH ITS NET INCOME WAS SHARPLY HIGHER AS A RESULT OF ACCOUNTING CHANGES IN THE 1992 FIRST QUARTER ELI LILLY & CO'S NET INCOME WAS 11 HIGHER BUT EARNINGS WERE DOWN 16 BEFORE CHARGES FOR ACCOUNTING CHANGES WARNERLAMBERT CO'S NET INCOME ROSE 11 IN THE QUARTER MERCK SAID ITS PROFIT WAS DRIVEN BY STRONG UNIT SALES GROWTH OF SEVERAL POPULAR PRESCRIPTION MEDICINES THE WHITEHOUSE STATION NJ DRUG MAKER SAID SALES ROSE 7 TO 238 BILLION FROM 222 BILLION BUT THE COMPANY SAID FOREIGNEXCHANGE TRANSLATIONS REDUCED SALES GROWTH BY THREE PERCENTAGE POINTS AND PRICE INCREASES HAD VIRTUALLY NO EFFECT ON SALES GROWTH LAST MONTH MERCK SAID IT EXPECTED A MODERATION IN 1993 EARNINGS BECAUSE OF AN INCREASINGLY TURBULENT COMPETITIVE ENVIRONMENT IN THE US HEALTH CARE COSTCONTAINMENT MEASURES WORLDWIDE AND THE UNFAVORABLE EFFECTS OF FOREIGN CURRENCIES ANALYSTS HAD EXPECTED MERCK TO POST EARNINGS GROWTH OF 11 TO 16 FOR THE YEAR EVEN SO RONALD NORDMANN AN INDUSTRY ANALYST AT PAINEWEBBER INC SAID THAT MERCK'S FIRSTQUARTER PERFORMANCE WAS SLIGHTLY BETTER THAN HE EXPECTED FOLLOWING THE COMPANY'S ANNOUNCEMENT LAST MONTH AND THAT THE COMPANY SEEMED TO BE DOING A BETTERTHANEXPECTED JOB OF HOLDING DOWN COSTS MERCK SAID ITS SALES WERE HELPED ESPECIALLY BY STRONG PERFORMANCE OF ITS MEDICINES FOR CHOLESTEROL ULCERS AND BLOOD PRESSURE MR NORDMANN SAID THE COMPANY'S NEWEST DRUG PROSCAR FOR SHRINKING ENLARGED PROSTATES PRODUCED SALES OF ABOUT 40 MILLION ALTHOUGH THAT WAS 60 HIGHER THAN IN THE FOURTH QUARTER OF 1992 SALES GROWTH OF THE DRUG IN THE US WAS FLAT MR NORDMANN SAID AS MERCK STRUGGLED TO GET DOCTORS AND PATIENTS TO TRY THE INNOVATIVE MEDICINE ELI LILLY'S EARNINGS DROPPED 16 TO 3735 MILLION FROM 4447 MILLION EXCLUDING THE 1189 MILLION ACCOUNTING CHARGE IN THE 1992 FIRST QUARTER AND A MUCH SMALLER 109 MILLION ACCOUNTING ADJUSTMENT THAT TRIMMED THE LATEST PERIOD'S RESULTS LILLY HAD DISMAYED INVESTORS IN MIDMARCH WITH A SURPRISE WARNING THAT PROFITS WERE GOING TO FALL SIGNIFICANTLY SHORT OF ANALYSTS' EXPECTATIONS THE FIRSTQUARTER RESULTS WERE IN LINE WITH THE EARNINGS DOWNTURN IT THEN PROJECTED SALES OF ITS ANTIBIOTIC DRUGS WERE DAMPED BY A RELATIVELY MILD FLU SEASON AND INCREASED COMPETITION LILLY SAID YESTERDAY SALES GROWTH OF ITS PROZAC ANTIDEPRESSANT IS ALSO THOUGHT TO HAVE SLOWED WHILE INTERNATIONAL SALES WERE GENERALLY STRONG THE COMPANY SAID TIGHTENED CONTROLS IN GERMANY'S HEALTHCARE SYSTEM HURT RESULTS ALSO PRESSURING PROFITABILITY IS THE FACT THAT LILLY'S PHYSIOCONTROL EMERGENCY HEARTDEFIBRILLATOR PLANT ORDERED SHUT BY THE FOOD AND DRUG ADMINISTRATION LAST MAY HAS YET TO RECEIVE PERMISSION TO RESUME PRODUCTION OF DEVICES FOR US SALES LILLY'S HYBRITECH UNIT SAW A DECLINE IN SALES AND PROFITS PRIMARILY BECAUSE A COMPETITOR'S PRODUCT IS DEPRESSING SALES OF ITS FLAGSHIP PROSTATECANCER TEST ANALYSTS SAID WARNERLAMBERT'S PROFIT GAIN OF ABOUT 11 WAS HELPED BY ESPECIALLY BRISK SALES OF ITS CONSUMERHEALTH PRODUCTS WHICH ROSE 8 TO 817 MILLION AS WITH MERCK HOWEVER SALES OF PHARMACEUTICAL PRODUCTS WERE DRIVEN ONLY BY UNIT GROWTH NOT PRICE INCREASES INDEED WORLDWIDE PRESCRIPTION DRUG SALES FELL 7 LARGELY AS A RESULT OF NEW PRICING RESTRICTIONS IN GERMANY THE MORRIS PLAINS NJ COMPANY SAID FOREIGNEXCHANGE TRANSLATIONS REDUCED OVERSEAS SALES GROWTH BY FOUR PERCENTAGE POINTS US DRUG SALES DECREASED 12 MELVIN GOODES THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY EXPECTED TO REACH ITS GOAL OF A 10 PROFIT INCREASE FOR THE YEAR INVESTORS REACTED WELL TO THE EARNINGS REPORTS MERCK STOCK WAS QUOTED AT 35625 A SHARE UP 1875 IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE WARNERLAMBERT WAS UP 2 TO 72625 AND LILLY WAS UP 75 CENTS TO 46375 9304200044 930420 BUSINESS BRIEF ADOLPH COORS CO BREWER POSTS 47 MILLION NET IN 1ST PERIOD SALES ROSE 35 ADOLPH COORS CO SAID IT REPORTED NET INCOME OF 47 MILLION OR 12 CENTS A SHARE FOR THE FISCAL FIRST QUARTER ENDED MARCH 21 COMPARED WITH A LOSS OF 21 MILLION OR 56 CENTS A SHARE A YEAR AGO THE YEARAGO QUARTER INCLUDED A LOSS FROM DISCONTINUED OPERATIONS OF 121 MILLION A LOSS FROM CHANGES IN ACCOUNTING OF 127 MILLION AND A GAIN FROM A CHANGE IN INCOME TAX ACCOUNTING OF 30 MILLION THE YEARAGO LOSS FROM OPERATIONS WAS ABOUT 600000 COORS SAID ITS IMPROVEMENT IN EARNINGS DOES NOT INDICATE AN IMPROVEMENT IN THE MARKETPLACE BUT REFLECTS THE IMPACT A CHANGE IN ITS DISTRIBUTION SYSTEM HAD ON YEARAGO EARNINGS WE CONTINUE TO SEE A VERY COMPETITIVE BEER MARKET NATIONWIDE THE GOLDEN COLO COMPANY SAID FOR THE QUARTER THE BREWER HAD SALES OF 296 MILLION UP 35 FROM 2858 MILLION 9304200043 930420 BUSINESS BRIEF JONES INTERCABLE INC CABLE TV FIRM POSTS LOSS FOR FISCAL THIRD QUARTER JONES INTERCABLE INC ENGLEWOOD COLO REPORTED A NET LOSS FOR ITS FISCAL THIRD QUARTER ON LOWER REVENUE AND SIGNIFICANTLY HIGHER OPERATING EXPENSES THE LOSS FOR THE QUARTER ENDED FEB 28 WAS 98 MILLION OR 70 CENTS A SHARE COMPARED WITH NET INCOME IN THE 1992 QUARTER OF 491 MILLION OR 4 A SHARE THE YEAREARLIER QUARTER INCLUDED AN EXTRAORDINARY GAIN OF 96 MILLION OR 78 CENTS A SHARE ON A TAXLOSS CARRYFORWARD THIRDQUARTER REVENUE FELL 39 TO 324 MILLION FROM 53 MILLION A YEAR EARLIER THE COMPANY NOTED THAT THE YEAREARLIER FIGURE INCLUDED 268 MILLION OF LIQUIDATION DISTRIBUTIONS FROM THE SALE OF CABLETELEVISION SYSTEMS OWNED BY ITS MANAGED PARTNERSHIPS NO SUCH REVENUE WAS RECOGNIZED DURING THE LATEST QUARTER WHILE TOTAL REVENUE WAS DOWN OPERATING GENERAL AND ADMINISTRATIVE EXPENSES ROSE 42 THE RESULT WAS A 68 DROP IN THE COMPANY'S OPERATING INCOME BEFORE DEPRECIATION AND AMORTIZATION TO 123 MILLION FROM 388 MILLION A YEAR EARLIER 9304200042 930420 WALMART'S PROXY IS HELD BY COURT FOR RACEPOLICY DATA NEW YORK A FEDERAL COURT JUDGE HERE ISSUED AN INJUNCTION AGAINST WALMART STORES INC PREVENTING IT FROM MAILING ITS PROXY STATEMENT TO SHAREHOLDERS UNTIL IT INCLUDES A SHAREHOLDER PROPOSAL ABOUT AFFIRMATIVE ACTION IN HIRING AND SUPPLIER PRACTICES THE PROPOSAL WOULD REQUIRE INFORMATION IN THE RETAILING GIANT'S PROXY ON ITS EMPLOYEES' RACE AND GENDER BY JOB CATEGORY A DESCRIPTION OF ITS AFFIRMATIVE ACTION POLICIES AND PROGRAMS AND DETAILS OF PROGRAMS AIMED AT INCREASING THE NUMBER OF FEMALE AND MINORITY MANAGERS IN ADDITION THE PROPOSAL REQUIRES WALMART TO DESCRIBE HOW IT PUBLICIZES THOSE POLICIES AND PROGRAMS TO SUPPLIERS AND ANY EFFORTS IT MAKES TO FAVOR BUSINESSES OWNED BY WOMEN AND MINORITIES THE SHAREHOLDER PROPOSAL WAS SUBMITTED BY THE AMALGAMATED CLOTHING AND TEXTILE WORKERS UNION WHICH REPRESENTS 237000 APPAREL AND TEXTILE WORKERS THE NATIONAL COUNCIL OF CHURCHES THE UNITARIAN UNIVERSALIST ASSOCIATION AND THE LITERARY SOCIETY OF SAINT CATHERINE OF SIENA TOGETHER THEY HOLD 29000 SHARES OF WALMART STOCK AND AN UNSPECIFIED NUMBER OF ADDITIONAL SHARES THROUGH PENSION FUNDS SAID AN ATTORNEY FOR THE UNION THE ATTORNEY MICHAEL ZUCKER SAID THAT OTHER RETAILERS HAVE RESPONDED MORE FAVORABLY TO THE GROUP'S REQUESTS AT THE REQUEST OF THE GROUP HE NOTED JC PENNEY CO HAS INCLUDED SIMILAR INFORMATION IN ITS PROXY STATEMENT SINCE 1991 AN ATTORNEY FOR WALMART ALAN DYE OF THE WASHINGTON DC FIRM OF HOGAN & HARTSON SAID THE COMPANY HADN'T DECIDED WHETHER IT WILL APPEAL THE JUDGE'S RULING BUT WOULD HAVE TO DECIDE SOON IN ORDER TO HAVE THE PROXY PRINTED AND MAILED BEFORE THE COMPANY'S JUNE 4 ANNUAL MEETING MR DYE WOULDN'T COMMENT ON WALMART'S REASONS FOR EXCLUDING THE PROPOSAL AND COMPANY OFFICIALS IN BENTONVILLE ARK COULDN'T BE REACHED FOR COMMENT 9304200041 930420 BUSINESS BRIEF OAK INDUSTRIES INC CONCERN SEES 1STPERIOD NET AT 45 MILLION TO 5 MILLION OAK INDUSTRIES INC HELPED BY BETTERTHANEXPECTED PERFORMANCE FROM ITS RECENTLY ACQUIRED CABLE TELEVISION EQUIPMENT UNIT EXPECTS FIRSTQUARTER EARNINGS OF BETWEEN 45 MILLION AND 5 MILLION OR SIX CENTS A SHARE WHICH IS AT THE HIGH END OF ANALYSTS' ESTIMATES OAK BASED IN WALTHAM MASS WILL REPORT FIRSTQUARTER EARNINGS TODAY WILLIAM S ANTLE III PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE ELECTRONIC CONTROLS AND COMPONENTS MAKER SAID IN AN INTERVIEW THAT GILBERT ENGINEERING CO WHICH WAS PURCHASED BY OAK IN DECEMBER IS PERFORMING MUCH BETTER THAN WE THOUGHT IT WOULD AND SHOULD MAKE IT A VERY STRONG YEAR FOR US IN THE YEAREARLIER QUARTER THE COMPANY HAD NET OF 6 MILLION OR SEVEN CENTS A SHARE WHICH INCLUDED A 35 MILLION GAIN OR FOUR CENTS A SHARE FOR TAX LOSS CARRYFORWARDS THE ADDITION OF GILBERT WHICH WILL ACCOUNT FOR ONETHIRD OF OAK'S SALES FOR 1993 HELPED BOOST FIRSTQUARTER SALES TO ABOUT 60 MILLION UP FROM SALES OF 36 MILLION IN THE YEARAGO QUARTER 9304200040 930420 INTERNATIONAL WORLD WIRE COMPILED BY LINDA D BOHRER THE EUROPEAN COMMUNITY APPROVED A PLAN AIMED AT PUSHING ITS 12MEMBER NATIONS OUT OF THEIR WORST ECONOMIC SLUMP IN 50 YEARS BUT OFFICIALS ACKNOWLEDGED THAT THEIR GROWTH INITIATIVE WON'T BE ENOUGH ON ITS OWN TO INDUCE A STRONG RECOVERY THIS IS A FIRST STEP SAID MARIANNE JELVED DENMARK'S ECONOMIC MINISTER ADDING THAT FURTHER INTEREST RATE CUTS ARE VITAL TO REVVING UP THE SLUGGISH EUROPEAN ECONOMY MS JELVED ALSO SAID MINISTERS IN THE NEXT FEW MONTHS WILL STUDY WHETHER MORE STIMULUS MEASURES ARE NEEDED THE EC COMMISSION ESTIMATED THAT THE LONGAWAITED PACKAGE WOULD ADD 35 BILLION EUROPEAN CURENCY UNITS 4219 BILLION TO THE COMMUNITY'S GROSS DOMESTIC PRODUCT BY THE END OF NEXT YEAR NUDGING GDP 06 HIGHER THAN IT WOULD OTHERWISE HAVE BEEN THE COMMISSION ALSO PROJECTED THAT THE MEASURES WOULD HELP CREATE 450000 JOBS NEARLY ALL OF THE MEASURES IN THE PACKAGE WERE PREVIOUSLY ANNOUNCED YESTERDAY'S ACTION CONSISTED OF PUTTING A ROUGH ESTIMATE ON THEIR TOTAL VALUE AMONG THE MAIN FEATURES OF THE PROGRAM IS FIVE BILLION ECUS OF NEW LENDING BY THE EUROPEAN INVESTMENT BANK TO SUPPORT INVESTMENTS IN SUCH PRIORITY AREAS AS CROSSBORDER TRANSPORT TELECOMMUNICATIONS ENERGY AND ENVIRONMENTAL PROTECTION THE BIG IG METALL METALWORKER'S UNION CALLED FOR A STRIKE VOTE IN EASTERN GERMANY TO BACK WAGE DEMANDS THREATENING NEW COMPLICATIONS AND COSTS FOR BONN'S UNITY PROGRAMS THE UNION WHICH HAS STAGED A SERIES OF BRIEF WARNING STRIKES SINCE APRIL 1 ANNOUNCED THAT MEMBERS IN THE STATES OF SAXONY AND MECKLENBURGVORPOMMERN WOULD VOTE NEXT MONDAY AND TUESDAY ON WHETHER TO STAGE A WALKOUT BEGINNING IN MAY SOME 20000 STEELWORKERS IN ALL FIVE EASTERN STATES WILL VOTE NEARLY ONE IN FOUR YOUNG JAPANESE MEN BELIEVES THAT HIRING GANGSTERS TO SETTLE DISPUTES IS A NECESSARY EVIL ACCORDING TO A SURVEY OF 3000 YOUNG PEOPLE CONDUCTED BY THE PRIME MINISTER'S OFFICE ABOUT 23 OF MEN AND 17 OF WOMEN IN THEIR 20S SAID THAT RELYING ON GANGSTERS TO EXTORT MONEY OR FORCE OUTOFCOURT SETTLEMENTS WAS SOMETIMES NECESSARY ASKED WHY SOME JAPANESE HAD TO RESORT TO ORGANIZED CRIME TO SETTLE THEIR GRIEVANCES ABOUT FOUR IN 10 SAID THAT THE COURTS TOOK TOO LONG OR THAT GOING TO THE POLICE WAS TOO TROUBLESOME THE BANK OF CHINA GROUP IN HONG KONG IS PUSHING AHEAD WITH PLANS TO CENTRALIZE FOREIGNEXCHANGE TRADING AND MONEYMARKET ACTIVITIES WITH ITS 12 SISTER BANKS TO HELP STREAMLINE OPERATIONS AND EXPAND MARKET SHARE IN THE BRITISH COLONY LAST MONTH THE BEIJINGCONTROLLED GROUP STANDARDIZED EXCHANGERATE QUOTATIONS AND CENTRALIZED RETAIL CURRENCY TRADING FOR MOST OF ITS MEMBER BANKS THE MOVES ARE PART OF A WIDER EFFORT TO BOLSTER THE GROUP'S PRESENCE IN HONG KONG AHEAD OF THE COLONY'S REVERSION TO CHINESE SOVEREIGNTY IN 1997 CHINA WILL SIGN 300 COPYRIGHT CONTRACTS WITH FOREIGN PUBLISHERS TO HELP SETTLE COPYRIGHT DISPUTES INVOLVING FOREIGN AUTHORS THE COPYRIGHT AGENCY OF CHINA WILL SIGN THE CONTRACTS WITH PUBLISHING HOUSES IN THE US THE UK CANADA RUSSIA AND ITALY THE XINHUA NEWS AGENCY SAID THE CONTRACTS WHICH WILL COVER MAINLY BOOKS AND PERIODICALS ON SCIENCE CULTURE AND SOCIETY WILL ALLOW THE CHINESE COPYRIGHT AGENCY TO REPRESENT FOREIGN AUTHORS IN COPYRIGHT DISPUTES IN CHINA AND WILL PROMOTE CIRCULATION OF CHINESE WORKS OVERSEAS CIGARETTE SALES IN JAPAN INCREASED LAST YEAR FOR THE FOURTH CONSECUTIVE YEAR DESPITE THE WORLDWIDE MOVEMENT AGAINST SMOKING A SPOKESMAN FOR THE TOBACCO INSTITUTE OF JAPAN SAID THE NUMBER OF CIGARETTES SOLD IN JAPAN TOTALED 329 BILLION UP ABOUT 600 MILLION OR 02 OVER THE PREVIOUS YEAR SALES OF JAPANESE CIGARETTES DROPPED BY 05 TO 273 BILLION WHILE THOSE OF FOREIGN CIGARETTES INCREASED BY 36 TO 562 BILLION OR 171 OF TOTAL CONSUMPTION ASIA'S CITIES SET TO HOUSE HALF THE WORLD'S URBAN POPULATION BY THE YEAR 2020 FACE SEVERE ENVIRONMENTAL DEGRADATION AND POLLUTION FROM RAPID URBANIZATION THE ASIAN DEVELOPMENT BANK SAID THE MANILABASED BANK SAID CONTAMINATED WATER CONGESTION POLLUTION MALNUTRITION OVERCROWDING AND HIGH CRIME RATES MAY WORSEN IN ASIA'S BURGEONING CITIES UNLESS DRASTIC ACTION IS TAKEN WHILE EXPLOSIVE URBAN GROWTH HAS HELPED SPUR ASIAN ECONOMIC DEVELOPMENT IT SAID MOST LARGE CITIES IN THE REGION FACE ENVIRONMENTAL PROBLEMS ARISING FROM POORLY MANAGED URBAN DEVELOPMENT AND ACTIVITIES PROBLEMS RANGE FROM PAYING FOR CLEAN WATER IN INDONESIA TO HOUSING SQUATTERS IN MANILA TO IMPROVING WINTER AIR QUALITY IN CHINA WHERE FACTORIES AND HOMES BURN POLLUTING COAL THE BANK SAID IT MUST WORK CLOSELY WITH DEVELOPING COUNTRIES TO RAISE THE PRODUCTIVITY AND EFFICIENCY OF URBAN ECONOMIES TO DELIVER BASIC INFRASTRUCTURE AND SERVICES ESPECIALLY WATER AND TRANSPORT IT SAID THE TASK WILL REQUIRE MASSIVE INVESTMENT BUSINESSES IN NEW ZEALAND ARE MORE CONFIDENT ABOUT THE PROSPECTS FOR LOCAL ECONOMIC GROWTH THAN THEY HAVE BEEN FOR MORE THAN 20 YEARS A SURVEY SHOWS CHINA AND RUSSIA SAY THEY WILL COOPERATE ON NUCLEAR RESEARCH BUT THE TECHNOLOGY WILL BE USED FOR PEACEFUL PURPOSES 9304200039 930420 BUSINESS BRIEF EUROTUNNEL PLC CHANNEL LINK'S OPENING TIED TO CONTRACTOR ALLIANCE SAYS EUROTUNNEL PLC REAFFIRMED THAT THE CHANNEL TUNNEL LINKING ENGLAND AND FRANCE OUGHT TO BE OPEN WITHIN A YEAR BUT THE ANGLOFRENCH CONSORTIUM SAID THE EXACT TIMING DEPENDS ON CONTRACTOR TRANSMANCHELINK WITH WHICH IT IS INVOLVED IN A BITTER DISPUTE OVER PAYMENT FOR COST OVERRUNS EUROTUNNEL ALSO SAID EXISTING FINANCING SOURCES WILL BE EXHAUSTED BY THE TIME THE TUNNEL OPENS IN MID1994 AND REITERATED ITS PLAN FOR A MAJOR EQUITYBASED REFINANCING BEFORE THE END OF 1995 THE CONSORTIUM'S STOCK WHICH IS TRADED IN LONDON AND PARIS SANK ON THE NEWS ON THE LONDON STOCK EXCHANGE EUROTUNNEL CLOSED AT 440 PENCE 671 DOWN 20 PENCE IN PARIS IT LOST 13 FRANCS TO END AT 3735 FRANCS 684 FOR AN ADDITIONAL SOURCE OF CASH EUROTUNNEL SAID IT INTENDED TO CLAIM COMPENSATION THIS SUMMER FROM THE UK GOVERNMENT FOR DELAYS IN THE PASSENGERTRAIN LINK ALASTAIR MORTON COCHAIRMAN OF EUROTUNNEL SAID HE REMAINED CONFIDENT THE 89 BILLION 1356 BILLION PROJECT WILL PAY FOR ITSELF QUICKLY AND MAKE ITS SHAREHOLDERS MONEY 9304200038 930420 KLUGE PLEDGES 60 MILLION TO COLUMBIA UNIVERSITY NEW YORK BILLIONAIRE JOHN W KLUGE PLEDGED 60 MILLION TO COLUMBIA UNIVERSITY TO SUPPORT FINANCIAL AID FOR MINORITY STUDENTS AT COLUMBIA COLLEGE THE UNIVERSITY'S UNDERGRADUATE LIBERALARTS SCHOOL THE PLEDGE FROM MR KLUGE A 1937 GRADUATE OF COLUMBIA COLLEGE WOULD REPRESENT THE FOURTHLARGEST GIFT BY AN INDIVIDUAL TO A UNIVERSITY OR COLLEGE AND THE LARGEST SUCH GIFT EVER TO AN IVY LEAGUE SCHOOL MR KLUGE CHAIRMAN OF METROMEDIA CO ANNOUNCED THE GIFT LAST NIGHT DURING A CEREMONY HONORING MICHAEL I SOVERN COLUMBIA UNIVERSITY'S PRESIDENT MR SOVERN IS RETIRING JUNE 30 AFTER 13 YEARS AS PRESIDENT THE AWARD WILL ESTABLISH A FINANCIAL AID ENDOWMENT FOR THE JOHN W KLUGE SCHOLARS PROGRAM AT COLUMBIA COLLEGE MR KLUGE ALSO MADE 25 MILLION GIFTS TO COLUMBIA UNIVERSITY IN 1987 AND 1990 BOTH TO SUPPORT MINORITY FINANCIAL AID AND SCHOLARSHIPS A COLUMBIA SPOKESMAN WOULDN'T SPECIFY OVER WHAT PERIOD OF TIME THE GIFT WOULD BE GIVEN MR KLUGE'S 1987 GIFT WAS PLEDGED OVER A 10YEAR PERIOD ACCORDING TO A UNIVERSITY OFFICIAL 9304200037 930420 BUSINESS BRIEF SHERWINWILLIAMS CORP COSTCUTTING HELPS CONCERN REPORT FIRSTQUARTER PROFIT SHERWINWILLIAMS CORP CREDITING COSTCUTTING AND MANUFACTURING EFFICIENCIES IN ITS COATINGS UNIT REPORTED NET INCOME OF 138 MILLION OR 15 CENTS A SHARE FOR THE FIRST QUARTER IN THE YEAREARLIER PERIOD THE CLEVELAND PAINT AND VARNISH MAKER POSTED A LOSS OF 701 MILLION OR 80 CENTS A SHARE THAT QUARTER INCLUDED A CHARGE OF 998 MILLION OR 114 A SHARE TO CHANGE THE WAY THE COMPANY ACCOUNTS FOR RETIREE HEALTH BENEFITS IT ALSO INCLUDED A GAIN OF 181 MILLION OR 21 CENT A SHARE FOR A CHANGE IN THE WAY THE COMPANY ACCOUNTS FOR INCOME TAXES FIRSTQUARTER SALES CLIMBED 4 TO 618 MILLION FROM 5946 MILLION SHERWINWILLIAMS SAID IT EXPECTS TO POST HIGHER SALES AND EARNINGS FOR ALL OF 1993 IN 1992 IT EARNED 629 MILLION OR 71 CENTS A SHARE WHICH INCLUDED THE ACCOUNTING CHANGES SALES WERE 27 BILLION 9304200036 930420 CREDIT MARKETS CALIFORNIA TO ISSUE 3 BILLION OF NOTES TODAY PART OF EFFORT TO AVOID REPLAY OF CASH CRUNCH BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THANKS TO AN INNOVATIVE FINANCING PLAN THE CALIFORNIA CONTROLLER'S OFFICE HOPES TO RIDE THE WAVES OF CONTENTIOUS BUDGET DEBATES RATHER THAN BE SWAMPED BY THEM PART OF THAT STRATEGY IS TODAY'S PLANNED OFFERING OF 3 BILLION OF REVENUE ANTICIPATION NOTES MATURING JUNE 24 THE OFFERING WILL BE THIS YEAR'S LARGEST MUNI OFFERING SO FAR ACCORDING TO SECURITIES DATA CO AND ONE OF THE 10 LARGEST OFFERINGS SINCE 1986 A BUDGET CRISIS FORCED THE STATE TO ISSUE 38 BILLION OF EMERGENCY IOUS LAST SUMMER BUT THIS SUMMER WILL BE DIFFERENT ACCORDING TO THE STATE CONTROLLER GRAY DAVIS THE STATE HAS ARRANGED A STANDBY PURCHASE AGREEMENT WITH FOUR SECURITIES FIRMS FOR A TOTAL OF 5 BILLION BY NEGOTIATING THIS AGREEMENT IN ADVANCE IT MAY ALSO HAVE SAVED ITSELF SOME GRIEF IN BRINGING ANOTHER OFFERING PERHAPS AS MUCH AS 2 BILLION OF REVENUE ANTICIPATION WARRANTS WHEN THE RANS MATURE BECAUSE HE'S WORRIED THAT A NEW BUDGET WILL NOT BE APPROVED BY JULY 1 SAYS MR DAVIS THE ARRANGEMENT FOR THE PURCHASE AGREEMENTS COULD HELP THE STATE AT LEAST AVOID THE EMBARRASSING NEED TO ISSUE MORE IOUS I WAS FORCED TO SET THE WORLD RECORD FOR BAD CHECKS LAST SUMMER SAYS MR DAVIS I DON'T WANT TO DO THAT AGAIN 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 MEANWHILE TREASURY NOTES AND BONDS POSTED MODEST GAINS AS THE BENCHMARK 30YEAR TREASURY BOND ROSE 3/8 POINT OR 375 FOR A BOND WITH A 1000 FACE AMOUNT TO 105 4/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE DROPPED TO 672 FROM 675 ON FRIDAY THE 10YEAR NOTE ROSE LESS THAN 1/4 POINT TO 102 28/32 TO YIELD 585 DOWN FROM 588 THE STANDBY PURCHASE AGREEMENT WITH MERRILL LYNCH & CO JP MORGAN SECURITIES INC LEHMAN BROTHERS AND GOLDMAN SACHS & CO HELPED CALIFORNIA GARNER HIGH RATINGS FROM THE CREDIT AGENCIES RANGING FROM SP1 FROM STANDARD & POOR'S CORP TO MIG1 FROM MOODY'S INVESTORS SERVICE INC AND F1PLUS FROM FITCH INVESTORS SERVICES INC CERTAIN FUNDS WOULD HAVE BEEN RESTRICTED IN THEIR PURCHASES OF THE NOTES IF THE RATINGS HAD BEEN LOWER THE AGREEMENT MEANS THE FOUR FIRMS WILL BUY THE ISSUES IN THE EVENT OF WEAK DEMAND WE'RE A LITTLE SURPRISED BUT PLEASED THEY GOT A HIGH RATING SAID DAVID MACEWEN A MUNICIPAL PORTFOLIO MANAGER AT THE BENHAM GROUP CERTAIN FUNDS MANAGED BY BENHAM MIGHT HAVE BEEN UNABLE TO BUY THE NOTES WITH A LOWER RATING HE SAID THE NOTES ARE EXPECTED TO YIELD FROM 250 TO 260 ACCORDING TO CASEY COLTON A PORTFOLIO MANAGER AT BENHAM WITH AS MUCH AS A THIRD OR 1 BILLION GOING TO SMALL INVESTORS AND THE REMAINDER TO INSTITUTIONAL INVESTORS THE NOTES ARE EXPECTED TO BE PRICED BY A GROUP OF UNDERWRITERS LED BY LEHMAN BROTHERS UNLIKE LAST SUMMER CALIFORNIA GOVERNOR PETE WILSON HAS NOT SET A MATURITY DATE FOR THE EXPECTED OFFERING OF RAWS SAYS MR DAVIS THIS SHOULD GIVE THE STATE SOME BREATHING ROOM IF A DEBATE DELAYS FINAL APPROVAL OF THE BUDGET THEORETICALLY THE RAWS MAY GO UNPAID UNTIL THE END OF THIS YEAR SAYS MR DAVIS WHILE THE AGREEMENTS SEEMED TO GIVE CONFIDENCE TO MANY POTENTIAL INVESTORS SOME IN THE MUNI MARKET ARE WORRIED ACCORDING TO THE CONTROLLER'S OFFICE THE STATE MAY BE FACING AN APPROXIMATE BUDGET GAP OF 9 BILLLION OVER THE CURRENT AND NEXT FISCAL YEARS THE DEFICIT THAT'S BEING DISCUSSED IS ENOUGH TO SUGGEST THAT CALIFORNIA HAS GOT ITS WORK AHEAD OF IT HERE SAYS RICHARD CICCARONE DIRECTOR OF FIXEDINCOME RESEARCH AT KEMPER SECURITIES INC HE EXPECTS THE YIELD LEVELS ON TODAY'S OFFERING WILL BE RELATIVELY ATTRACTIVE IN THE BROADER MUNICIPAL MARKET BONDS FINISHED 3/8 POINT LOWER TO 3/8 POINT HIGHER THE LOS ANGELES DEPARTMENT OF WATER & POWER'S 5875 PLANT REVENUE REFUNDING BONDS MATURING IN 2030 FOR EXAMPLE FINISHED 1/8 POINT HIGHER AT 100 3/8 TO YIELD 583 AND THE KENTUCKY TURNPIKE AUTHORITY'S SERIES 1993 REVENUE AND REFUNDING BONDS WERE FREED TO TRADE BY A MERRILL LYNCH & CO GROUP THE 550 COUPON BONDS MATURING IN 2011 WERE QUOTED AT 97 5/8 IN LATE TRADING TO YIELD 568 WHEN THE 5705 MILLION ISSUE WAS PRICED LAST WEEK THOSE BONDS WERE GIVEN A 575 YIELD WHAT LITTLE ACTION THERE WAS TOOK PLACE IN THE PRIMARY MARKET A FIRST BOSTON CORP GROUP PRICED THE GEORGIA MUNICIPAL ELECTRIC AUTHORITY'S 1765 MILLION OF POWER REVENUE BONDS AND GAVE THEM YIELDS THAT RANGE FROM 450 FOR NOTES MATURING IN 1998 TO 578 FOR BONDS MATURING IN 2019 THE NONCALLABLE BONDS HAVE BEEN RATED SINGLEA1 BY MOODY'S AND DOUBLEAMINUS BY S&P MODEST BUYING BY A HANDFUL OF SPECULATIVE TRADERS PROPPED UP TREASURY BOND PRICES PROVIDING THE DAY'S ONLY NOTABLE PRICE MOVES WHILE SHORTERTERM INSTRUMENTS BARELY BUDGED DURING THE SESSION AS 30YEAR BONDS ROSE 3/8 POINT AND 10YEAR NOTES ROSE LESS THAN 1/4 POINT MOST OTHER SECURITIES ROSE LESS THAN 1/8 OR WERE UNCHANGED THE FIVEYEAR NOTE FOR EXAMPLE ROSE 2/32 POINT TO 100 10/32 TO YIELD 504 DOWN FROM 505 NO ECONOMIC NEWS WAS RELEASED YESTERDAY THE DEARTH OF INFORMATION AMONG OTHER FACTORS ENCOURAGED INSTITUTIONAL INVESTORS TO MAINTAIN THE STATUS QUO IN THEIR ACCOUNTS IT ALSO DISCOURAGED ACTIVITY BY TRADERS TODAY WAS STRICTLY SPECULATIVE SAID A HEAD TRADER AT A PRIMARY DEALER OF GOVERNMENT SECURITIES IN THE ABSENCE OF OUTSIDE INVESTORS THAT WOULD MEAN THAT TRADE WAS LIKELY LIMITED TO THE PROPRIETARY ACCOUNTS OF WALL STREET'S SECURITIES FIRMS WHILE ECONOMIC REPORTS DUE IN THE NEXT FEW DAYS PROBABLY WON'T PROVIDE THE MARKET WITH THE IMPETUS TO BREAK OUT OF THE CURRENT TRADING RANGE DEALERS SAY THE MARKET REMAINS UNDERPINNED BY BULLISH FUNDAMENTALS LAST WEEK'S RALLY RAN UP WITHOUT A LOT OF INVESTOR PARTICIPATION POINTS OUT JOSEPH KELLY SENIOR VICE PRESIDENT AT PRUDENTIAL SECURITIES INC BUT MONEY MANAGERS WILL EVENTUALLY REENTER THE MARKET WITH SHOPPING LISTS MR KELLY SAYS BECAUSE THEY HAVE AMPLE CASH TO INVEST HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED APRIL 22 THE 13WEEK BILLS MATURE JULY 22 1993 AND THE 26WEEK BILLS MATURE OCT 21 1993 CORPORATE ISSUANCE INCLUDED ONE INFREQUENT BORROWER AND ONE FAMILIAR FACE UPJOHN CO WHICH HASN'T TAPPED THE PUBLIC DEBT MARKET SINCE EARLY 1990 OFFERED 200 MILLION OF SEVENYEAR NOTES THROUGH MORGAN STANLEY & CO MEANWHILE NEWS AMERICA HOLDINGS INC A UNIT OF THE AUSTRALIA MEDIA GIANT NEWS CORP FLOATED A 250 MILLION ISSUE OF 30YEAR DEBENTURES THROUGH MERRILL LYNCH & CO NEWS AMERICA WHICH HAS BEEN AGGRESSIVELY REFINANCING ITS OUTSTANDING HIGHERCOUPON PAPER OFFERED 1 BILLION OF NEW DEBT IN FEBRUARY ALONE THAT MAY BE ONE REASON WHY THE SIZE OF THE LATEST OFFERING WAS AT LEAST 50 MILLION SMALLER THAN PREDICTED BY INVESTORS AND BANKERS LAST WEEK IT'S POSSIBLE INVESTMENT BANKERS SAY THAT THE MARKET FOR NEW NEWS CORP DEBT HAS BECOME SATURATED IN SECONDARY TRADING MOST CORPORATES CLOSED FLAT TO 1/8 HIGHER JUNK BONDS ENDED FIRM BUT WITH MANY INVESTORS AT A FLORIDA HIGHYIELD CONFERENCE ACTIVITY WAS LIGHT SEPARATELY DONALDSON LUFKIN & JENRETTE SECURITIES CORP INTRODUCED NEW CRITERIA FOR RATING SALE LEASEBACK OBLIGATION BONDS SLOBS OF ELECTRIC UTILITIES IN CONJUNCTION WITH THE MOVE DLJ DOWNGRADED FOUR ACTIVELY TRADED ISSUES COMPRISING ABOUT 24 BILLION OR 40 OF THE 6 BILLION IN SLOB DEBT OUTSTANDING SLOBS ARE SOLD BY ELECTRIC UTILITIES TO REFINANCE ASSETS SUCH AS COAL AND NUCLEAR POWER PLANTS AND SOME TRANSMISSION LINES THESE PLANTS ARE THEN LEASED BACK TO THE UTILITIES THE LEASE PAYMENTS ARE MADE TO A NOMINEE CORPORATION OR TRUST WHICH IN TURN DISTRIBUTES THE LEASE PAYMENTS TO BONDHOLDERS AND EQUITY PARTICIPANTS IN THE LEASE SLOB DEBT IS HELD BY MANY OF THE COUNTRY'S LARGEST INSURANCE COMPANIES PENSION FUNDS AND MUTUAL FUNDS ANALYSTS SAY PRICES OF MORTGAGE SECURITIES ENDED HIGHER ALTHOUGH TRADING WAS THIN AND MARKED BY INVESTOR INDECISION AND APATHY IN SECONDARY TRADING GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 7 SECURITIES FOR MAY DELIVERY FINISHED 9/32 HIGHER AT 101 2/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD SECURITIES FINISHED 7/32 HIGHER AT 101 7/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 7 SECURITIES FINISHED 7/32 HIGHER AT 101 1/32 THE LITTLE TRADING THAT TOOK PLACE WAS DRIVEN BY PREPAYMENT CONCERNS PREPAYMENTS WHICH RETURN PRINCIPAL TO INVESTORS AHEAD OF SCHEDULE OCCUR WHEN HOMEOWNERS REFINANCE MORTGAGES UNDERLYING THE SECURITIES MOST TRADES WERE DOWNINCOUPON MEANING INVESTORS SOLD HIGHCOUPON SECURITIES TO BUY CURRENT COUPONS OR BONDS WITH MINIMAL PREPAYMENT RISK CURRENTCOUPON SECURITIES ARE BACKED BY NEWLY ORIGINATED MORTGAGES WHICH ARE LESS PRONE TO REFINANCING TRADERS AND ANALYSTS BELIEVE THE MORTGAGE MARKET WILL REMAIN WITHIN TRADING RANGES FOR THE NEAR TERM AS LITTLE FRESH NEWS ON PREPAYMENTS OR THE ECONOMY IS EXPECTED THE PRIMARY MARKET WAS ALSO QUIET FREDDIE MAC ANNOUNCED A 300 MILLION REAL ESTATE MORTGAGE INVESTMENT CONDUIT DEAL BACKED BY 30YEAR 65 MORTGAGES AND ALSO ANNOUNCED INCREASES TOTALING 288 MILLION TO TWO PREVIOUSLY ANNOUNCED DEALS CANDACE CUMBERBATCH AND GENE COLTER CONTRIBUTED TO THIS ARTICLE 9304200035 930420 WHAT'S NEWS WORLDWIDE MORE THAN 80 CULT MEMBERS DIED AS FIRE DESTROYED THEIR COMPOUND IN TEXAS A CULT LEADER'S APOCALYPTIC PREDICTION FOR HIS FOLLOWERS CAME TRUE WHEN A RAGING FIRE DESTROYED THE WACO COMPOUND WHERE HE HAD HELD FEDERAL AGENTS AT BAY FOR 51 DAYS AS MANY AS 86 MEMBERS OF THE BRANCH DAVIDIAN SECT INCLUDING LEADER KORESH AND 24 CHILDREN ARE BELIEVED TO HAVE DIED ONLY NINE PEOPLE SURVIVED ACCORDING TO AUTHORITIES WHO SAID CULT MEMBERS SET THE FIRE THE BLAZE ERUPTED SIX HOURS AFTER THE FBI BEGAN USING ARMORED VEHICLES TO POUND HOLES IN THE BUILDINGS AND SPRAY THEM WITH TEAR GAS ATTORNEY GENERAL RENO HAD APPROVED THE FBI ASSAULT AND INFORMED PRESIDENT CLINTON IN ADVANCE THE SIEGE BEGAN FEB 28 WHEN A RAID BY THE US BUREAU OF ALCOHOL TOBACCO AND FIREARMS RESULTED IN A GUN BATTLE THAT KILLED FOUR AGENTS AND POSSIBLY AT LEAST SIX CULT MEMBERS ATF AGENTS SAID THEY HAD AN ARREST WARRANT CHARGING KORESH WITH FIREARMS VIOLATIONS UN HELICOPTERS EVACUATED 354 SERIOUSLY WOUNDED PEOPLE FROM SERBBESIEGED MUSLIM SREBRENICA BUT BATTLES STILL RAGED IN CENTRAL BOSNIA WHERE UP TO 200 PEOPLE HAVE DIED IN FOUR DAYS OF FIGHTING A DRAFT RESOLUTION WAS CIRCULATED BY NONALIGNED SECURITY COUNCIL MEMBERS AT THE UN THAT COULD OPEN THE WAY FOR A DESERT STORMTYPE COALITION TO ASSIST BOSNIA IN REPELLING SERB ATTACKS A SLAIN BLACK LEADER WAS BURIED IN SOUTH AFRICA AMID A SURGE OF VIOLENCE THAT PRESIDENT DE KLERK SAID HAD BROUGHT THE COUNTRY TO THE BRINK OF A RACE WAR OVER 80000 BLACKS GATHERED FOR THE LARGELY PEACEFUL FUNERAL RITES IN HONOR OF CHRIS HANI MORE THAN 50 PEOPLE MOSTLY BLACKS HAVE BEEN KILLED SINCE HANI'S SLAYING NINE DAYS AGO THE PENTAGON WILL RECOMMEND IN ITS FINAL REPORT ON THE TAILHOOK SEX SCANDAL THAT MORE THAN 140 PEOPLE BE REFERRED TO THE MILITARY'S LEGAL SYSTEM FOR POSSIBLE DISCIPLINARY ACTION DEFENSE OFFICIALS SAID THE REPORT ON THE THREEDAY TAILHOOK AVIATORS CONVENTION IN 1991 IS EXPECTED TO BE RELEASED FRIDAY ACCORDING TO THE OFFICIALS SECRETARY OF STATE CHRISTOPHER SAID HE EXPECTED A DELAY OF NOT MORE THAN A WEEK IN THE RESUMPTION OF ARABISRAELI TALKS MEANWHILE HOWEVER A MEMBER OF THE PLO'S EXECUTIVE COMMITTEE SAID THAT PALESTINIANS WANT US ASSURANCES THAT EAST JERUSALEM'S FUTURE IS NEGOTIABLE LOS ANGELES POLICE SCALED BACK MASSIVE STREET PATROLS ORDERED AHEAD OF SATURDAY'S ANNOUNCEMENT OF A VERDICT IN THE KING BEATING TRIAL OFFICIALS SAID CRIME FELL 25 DURING THE WEEKEND POLICE ALERT MEANWHILE KING'S LAWYER SAID HIS FAITH IN THE JUSTICE SYSTEM WAS RENEWED AFTER TWO OFFICERS WERE CONVICTED OF VIOLATING KING'S CIVIL RIGHTS SOUTH DAKOTA'S GOV MICKELSON DIED WHEN HIS STATEOWNED PLANE CRASHED WHILE TRYING TO MAKE AN EMERGENCY LANDING NEAR DUBUQUE IOWA KILLING ALL EIGHT PEOPLE ABOARD MICKELSON 51 A REPUBLICAN HAD BEEN GOVERNOR SINCE 1986 ITALIANS VOTED OVERWHELMINGLY TO OVERHAUL THEIR SCANDALRIDDEN POLITICAL SYSTEM PARLIAMENT IS EXPECTED TO MEET AS EARLY AS THIS WEEK TO DISCUSS THE FORMATION OF A NEW GOVERNMENT A US PRESIDENTIAL ENVOY RAISED DOUBTS ABOUT THE AUTHENTICITY OF A DOCUMENT INDICATING NORTH VIETNAM HELD BACK HUNDREDS OF AMERICAN PRISONERS OF WAR VESSEY SAID THAT AFTER TWO DAYS OF MEETINGS WITH VIETNAMESE OFFICIALS HE WASN'T READY TO RENDER A VERDICT ON THE DOCUMENT WHICH PURPORTEDLY IS A RUSSIAN TRANSLATION OF A 1972 REPORT MEXICAN OFFICIALS SAID THE RULING INSTITUTIONAL REVOLUTIONARY PARTY HELD A BIG LEAD IN EARLY RESULTS FROM SUNDAY'S SPECIAL GUBERNATORIAL ELECTIONS IN THE CENTRAL STATE OF SAN LUIS POTOSI OPPOSITION CANDIDATES CHARGED ELECTORAL FRAUD WHEN THE LAST ELECTIONS WERE HELD IN 1991 A PRI CANDIDATE WON BUT WAS FORCED TO QUIT AMID VOTERIGGING CHARGES PAKISTAN'S PRESIDENT ISHAQ KHAN BEGAN ASSEMBLING A BIPARTISAN GOVERNMENT TO STEER THE NATION THROUGH A PARLIAMENTARY ELECTION CAMPAIGN FOLLOWING HIS OUSTER OF PRIME MINISTER SHARIF ON SUNDAY HOWEVER ALLIES OF SHARIF WERE PREPARING TO APPEAL FOR NULLIFICATION OF HIS REMOVAL COSMAS N'DETI OF ENGLAND WON THE 97TH BOSTON MARATHON THE KENYABORN RUNNER COMPLETED THE 26MILE 385YARD RACE IN 20933 OLGA MARKOVA OF RUSSIA WAS THE FEMALE VICTOR WITH A TIME OF 22527 9304200034 930420 AMIGOS FOR NOW MEXICANS ANTICIPATE PASSAGE OF TRADE PACT WILL LIFT ECONOMY BUT IF NAFTA SHOULD FAIL THE PESO COULD COLLAPSE ALONG WITH NEW AMITY SI' TO COLGATE AND BLIMPIES BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY AS MEXICO EAGERLY ANTICIPATES THE PROPOSED NORTH AMERICAN FREE TRADE AGREEMENT ALL THINGS GRINGO ARE IN FASHION THE HOT NIGHTSPOT IS YUPPIES SPORTS BAR WHICH IS ALLAMERICAN DOWN TO THE BASEBALL FLANNELS ON THE WALL AND THE BACON CHEESEBURGERS ON THE MENU STREET MARKETS NOW PEDDLE THE BART SIMPSON PINATA AT TOP UNIVERSITIES A NEW MAJOR IS AVAILABLE US STUDIES COMERCIAL MEXICANA A SUPERMARKET CHAIN STOCKED HOMESTUDY ENGLISHLANGUAGE CASSETTES NEAR CHECKOUT COUNTERS AND WATCHED THEM SELL NEARLY AS FAST AS MOVIE MAGAZINES ENGLISH MAY SOON BE MADE COMPULSORY IN PUBLIC SCHOOLS FROM GRADE ONE THE BETTER TO BEGIN EDUCATING MEXICANS ON THE FOREIGN CUSTOMS OF AMERICA AS WELL AS ITS LANGUAGE IF A POLICEMAN CATCHES YOU DRIVING TOO FAST ONE TEXTBOOK WARNS TRAVELERS TO THE US YOU WILL HAVE TO PAY A BIG FINE AT HOME THE BOOK NOTES SUCH A PROBLEM WOULD BE RESOLVED DIFFERENTLY AT FORUMS LIKE A RECENT US FRANCHISE SHOW MEXICAN ENTREPRENEURS ARE EXPOSED TO THE AMERICAN WAY OF BUSINESS MUCHOS PROSPECTS PURRS KARL MARTIN A VICE PRESIDENT FOR SCHLOTZSKY'S DELICATESSENS THE NUMBER OF US FRANCHISES WITH OUTLETS IN THIS COUNTRY HAS QUADRUPLED IN THREE YEARS TO MORE THAN 100 AT THE FRANCHISE SHOW ONE MEXICAN INVESTOR WRITES MR MARTIN A CHECK FOR 10000 AFTER PERUSING A BROCHURE ABOUT HIS DELI FRANCHISES A MAN RUNNING THE BLIMPIE SUBS & SALADS BOOTH SAYS THE COMPANY CAME BECAUSE MEXICAN CUSTOMERS IN TEXAS INSISTED THE SUBS WOULD BE A HIT BACK HOME IT TURNS OUT MEXICANS ARE CRAZY FOR BLIMPIE HE SAYS CRAZY FOR BLIMPIE IN THE LAND OF THE TACO WELCOME TO THE NEW MEXICO THE ONE EMERGING UNDER THE ASSUMPTION WHICH LOOKS FAR LESS CERTAIN NORTH OF THE BORDER THAT THE FREETRADE PACT WILL SOON BE SIGNED MEXICO'S HARVARDTRAINED PRESIDENT CARLOS SALINAS DE GORTARI HAS ENGINEERED A TRANSFORMATION OF MEXICO'S LONG TROUBLED RELATIONSHIP WITH THE US THAT IS AS REVOLUTIONARY IN ITS WAY AS THE OTHER EPOCHAL POLITICAL CHANGES THE WORLD HAS LATELY SEEN THE TRADE PACT IS THE LINCHPIN OF A BROAD RAPPROCHEMENT IN WHICH MEXICO HAS MORE AGGRESSIVELY BATTLED NARCOTICS TRAFFICKERS TRIED TO PREACH THE FREE MARKET TO CUBA AND EVEN SENT 30 CENTURIES OF RARELY TRAVELED ART TREASURES ON A US TOUR GIVEN THE READINESS WITH WHICH MEXICANS HAVE ACCEPTED MR SALINAS'S PROGRAM IT IS EASY TO FORGET HOW DIFFERENT THE OFFICIAL ATTITUDE TOWARD THE US WAS ONLY A FEW YEARS AGO THOUGH THE GOLDEN ARCHES ARE A FAMILIAR SIGHT NOW THE COUNTRY'S FIRST MCDONALD'S WAS SHUT DOWN IN THE MID1980S BY THE GOVERNMENT AFTER IT PRINTED NAPKINS EMBLAZONED WITH THE MEXICAN FLAG IN HONOR OF MEXICAN INDEPENDENCE DAY IT SEEMS ONE PUBLIC OFFICIAL OBJECTED TO USING THE NATIONAL EMBLEM TO SOP UP KETCHUP A TRADING PACT WOULD BE FAR HARDER FOR MEXICO TO SWALLOW THAN A BIG MAC WAS OR SO IT WAS THOUGHT A FORMAL NORTH AMERICAN FREE TRADE AGREEMENT IS LIKELY TO BE REJECTED BY MEXICO AS REGULARLY AS IT IS PROPOSED BY THE UNITED STATES SAID LIMITS TO FRIENDSHIP AN INFLUENTIAL BOOK PUBLISHED IN THE US IN 1988 THAT WAS AUTHORED BY TWO ACADEMICS ONE MEXICAN THE OTHER AMERICAN BUT THE BOOK WAS BARELY OUT IN PAPERBACK WHEN MR SALINAS SENT AN EMISSARY TO WASHINGTON TO START NEGOTIATIONS FOR SUCH A PACT CLEARLY MR SALINAS'S 79 APPROVAL RATING IS BASED IN PART ON BROAD SUPPORT FOR HIS US POLICY THE IRONY IS THAT THE PACT WHICH WAS ESSENTIALLY COMPLETED BY NEGOTIATORS LAST AUGUST IS ATTRACTING FIERCE OPPOSITION IN THE US AMERICAN UNIONS AND ENVIRONMENTAL GROUPS FEAR THAT MULTINATIONAL COMPANIES WILL TRANSFER PLANTS TO MEXICO TO TAKE ADVANTAGE OF COMPARATIVELY LAX WORKPLACE STANDARDS TO ALLAY CRITICS PRESIDENT BILL CLINTON HAS SAID HE WON'T SUBMIT THE AGREEMENT TO CONGRESS UNTIL HE NEGOTIATES PARALLEL ACCORDS WITH MEXICO AND CANADA TO TIGHTEN ENVIRONMENTAL AND LABOR REGULATIONS BUT LAST WEEK THE CLINTON ADMINISTRATION SAID IT WOULD ACCEDE TO MEXICAN AND CANADIAN DEMANDS THAT PROPOSED TRINATIONAL COMMISSIONS OVERSEEING LABOR AND ENVIRONMENTAL LAWS HAVE LIMITED ENFORCEMENT POWERS THAT CONCESSION MAY INFLAME OPPOSITION TO THE PACT IN THE US WHERE SOME MEMBERS OF CONGRESS HAVE INSISTED THAT REGULATORS BE GIVEN REAL CLOUT THE VOTE IN CONGRESS IS EXPECTED SOMETIME THIS SUMMER OR FALL NAFTA IS EXPECTED TO BE APPROVED WITHOUT PROBLEMS IN THE MEXICAN AND CANADIAN LEGISLATURES THOUGH PRESIDENT SALINAS HAS DONE MUCH TO SOFTEN ANY REMAINING TRACES OF HABITUAL ANTIAMERICANISM A COLLAPSE OF THE FREETRADE AGREEMENT AT THIS POINT COULD IGNITE A BACKLASH AGAINST THE US TO RIVAL FEW IN THIS COUNTRY'S HISTORY FOR THE PACT'S DEMISE WOULD NOT ONLY BE A BLOW TO MEXICAN PRIDE BUT QUITE POSSIBLY THE CATALYST FOR AN ECONOMIC DEBACLE MR SALINAS'S POLITICAL SUPPORT THOUGH BROAD IS ONLY AS SOLID AS THE MEXICAN PESO A STRONG PESO HAS BEEN THE ANCHOR OF MEXICO'S PROGRAM TO LOWER INFLATION TO A SINGLE DIGIT FROM TRIPLE DIGITS THE PESO IN TURN IS ONLY AS STABLE AS THE CONFIDENCE OF US INVESTORS WHO NOW HOLD 20 OF MEXICAN EQUITIES AND 50 OF ITS TREASURY BILLS IF FREE TRADE IS DERAILED CAPITAL WOULD LIKELY BEGIN FLOWING OUT OF MEXICO INSTEAD OF INTO IT THAT COULD TRIGGER A DEVALUATION AND ALL KINDS OF DISTRESS IF THE ECONOMY HITS THE SKIDS ISRAEL HERRERA A 20YEAROLD WORKINGCLASS MEXICAN WHO HAS BEEN STUDYING COMPUTER PROGRAMMING ON A SCHOLARSHIP DOUBTS THAT HE COULD STAY IN SCHOOL LET ALONE FULFILL HIS GOAL OF SNARING A GOOD JOB WITH A US COMPANY I WOULD HAVE TO TAKE A FULLTIME JOB MAKING TACOS OR WHATEVER HE SAYS ONE MEXICAN WOULD BENEFIT FROM SUCH A REVERSAL HOWEVER HE IS CUAUHTEMOC CARDENAS THE LEADER OF MEXICO'S NATIONALIST LEFT PARTY AND THE SON OF THE MEXICAN PRESIDENT WHO EXPROPRIATED INTERNATIONAL OIL PROPERTIES IN THE 1930S THOUGH HE HAS FADED SINCE HIS STRONG SHOWING IN THE 1988 PRESIDENTIAL ELECTIONS IN WHICH HE RECEIVED ABOUT A THIRD OF THE VOTE MR CARDENAS WOULD BE REVITALIZED BY AN ECONOMIC COLLAPSE ESPECIALLY ONE THAT COULD BE BLAMED ON THE GRINGOS CONFRONTING A RESURGENT MR CARDENAS HEADING INTO NEXT YEAR'S PRESIDENTIAL ELECTION MR SALINAS'S RULING PARTY WOULD PROBABLY HAVE TO BACK OFF FROM ITS DETENTE WITH THE US THUS USMEXICO RELATIONS WILL SOON GET EITHER A LOT BETTER OR A LOT WORSE THERE IS NOT MUCH IN BETWEEN BEFORE MR SALINAS MEXICO HAD LONG DISPLAYED A TORTURED AMBIVALENCE TOWARD THE NORTHERN COLOSSUS THE TITAN WAS AT THE SAME TIME THE ENEMY OF OUR IDENTITY AND THE UNCONFESSED MODEL OF WHAT WE WANTED TO BE THE POET OCTAVIO PAZ ONCE WROTE THOUGH MEXICANS HAVE ADMIRED THE PROSPERITY AND EFFICIENCY OF AMERICAN SOCIETY THEY WERE REPELLED BY THE OFTEN ANTAGONISTIC ROLE THE US PLAYED IN MEXICAN AFFAIRS MEXICO LOST HALF ITS TERRITORY TO THE US DURING THE MEXICANAMERICAN WAR LATER UNDER THE DICTATOR PORFIRIO DIAZ MANY PEOPLE BELIEVED THAT FOREIGNERS PARTICULARLY US CORPORATIONS WERE TREATED BETTER THAN MEXICANS AS ONE SAYING WENT THE COUNTRY WAS THE MOTHER OF FOREIGNERS AND THE STEPMOTHER OF MEXICANS WHEN MEXICANS FINALLY OUSTED DIAZ IN THE 1910 MEXICAN REVOLUTION A MANIPULATIVE US AMBASSADOR BACKED COUNTERREFORMERS EVEN WHEN US MEDDLING WAS AT ITS WORST THOUGH IT IS DOUBTFUL THERE WAS EVER A VISCERAL DISLIKE OF AMERICANS AMONG THE MEXICAN MASSES IN A PRIZEWINNING REVISIONIST STUDY OF THE MEXICAN REVOLUTION PUBLISHED IN 1986 BRITISH HISTORIAN ALAN KNIGHT ARGUED THAT REVOLUTIONARY LEADERS' ATTEMPTS TO WHIP UP PUBLIC ANIMOSITY TOWARD YANQUIS ALMOST INVARIABLY FELL FLAT NONETHELESS GOVERNMENTTOGOVERNMENT RELATIONS BETWEEN THE US AND MEXICO WERE FOR YEARS CONDUCTED AT A WARY DISTANCE IF THE US TENDED TO IGNORE MEXICO EXCEPT IN TIMES OF CRISIS MEXICAN LEADERS OFTEN SEEMED MORE CONCERNED WITH PAST AFFRONTS THAN PRESENT OPPORTUNITIES MEXICO STILL MAINTAINS AN ELABORATE NATIONAL MUSEUM OF INTERVENTION CHRONICLING OLD CLASHES WITH UNCLE SAM BUT LONG CONSIDERED IT BENEATH THE NATIONAL DIGNITY TO SPEND MONEY ON WASHINGTON LOBBYISTS TO HELP IMPROVE RELATIONS THE TURNING POINT WAS THE ECONOMIC CRISIS THAT ERUPTED IN 1982 AFTER MEXICO WAS UNABLE TO PAY ITS 100 BILLION DEBT WITH FOREIGN BANKS THE US STARTED TAKING NOTICE OF THE POTENTIAL HAZARD NEXT DOOR LITERALLY IN THE CASE OF THE TEXAS BORDER TOWNS THAT BEGAN LENDING FIRE ENGINES TO THEIR CASHSTRAPPED MEXICAN SISTER CITIES FOR ITS PART MEXICO BEGAN PROMOTING MANUFACTURED EXPORTS AND ENCOURAGING FOREIGN INVESTMENT TO END ITS TROUBLESOME DEPENDENCE ON OIL THE BUDDING ALLIANCE CULMINATED WITH MR SALINAS'S RESURRECTION IN 1990 OF THE PROPOSAL FOR A CONTINENTAL FREETRADE ZONE A LONG DORMANT IDEA OF FORMER PRESIDENT RONALD REAGAN'S MEXICANS HAVE ARRIVED AT THE CONCLUSION MR SALINAS SAID AT THE TIME THAT ONLY THROUGH INTERRELATION WITH OTHER NATIONS ARE WE GOING TO RECOVER THE ECONOMIC DYNAMISM AND WELLBEING THAT WE LOST IN THE CRISIS ALREADY COMMERCE IS CREATING NEW CROSSBORDER BONDS LIKE THE ONE BETWEEN WISCONSIN WHOSE EXPORTS TO MEXICO ARE BOOMING AND ITS RECENTLY CHOSEN SISTER STATE JALISCO IT IS ALSO CASTING OLD RELATIONSHIPS BETWEEN MEXICANS AND AMERICANS IN A NEW LIGHT WE CAME HERE BECAUSE WE SAW MEXICO TURNING INTO A DIFFERENT COUNTRY SAYS MARTHA SKINNER A CALIFORNIAN WHO WITH HER HUSBAND IS STARTING A SLEW OF BUSINESSES IN THE ABUTTING BORDER TOWNS OF COLUMBUS NM AND LAS PALOMAS MEXICO COLUMBUS WAS THE SITE OF THE LAST INVASION OF THE US LED BY PANCHO VILLA IN 1916 WHETHER DUE TO THE MEMORY OF VILLA OR THE DEMISE OF THE LOCAL RAILROAD LINE COLUMBUS AND LAS PALOMAS ENJOY NONE OF THE PROSPEROUS BUSTLE OF MANY BORDER TOWNS THE SKINNERS ARE CHANGING THAT IN COLUMBUS THEY HAVE STARTED A BED AND BREAKFAST THAT CATERS TO MEXICAN BUSINESSMEN IN LAS PALOMAS THEY HAVE STARTED A FURNITURE FACTORY WE ARE HAPPY TO HAVE MARTHA OR ANYONE WHO WANTS TO INVEST SAYS JULIETA AVINA THE MAYOR OF LAS PALOMAS THIS IS NOT TO SAY THAT THE LUST FOR GREENBACKS HAS TEMPERED MEXICO'S NATIONAL PRIDE STILL VERY PRICKLY WHEN AN AMERICAN BOXER RECENTLY VOWED TO FIND OUT HOW MANY JALAPENOS WERE IN THE GUT OF MEXICAN LIGHTWEIGHT IDOL JULIO CESAR CHAVEZ THE LARGEST FIGHT CROWD EVER 120000 MEXICANS TURNED OUT TO MAKE SURE THE GRINGO GOT HIS COMEUPPANCE HE DID AND THOUGH MEXICANS WELCOME US CONSUMER GOODS THEY CAN DO WITHOUT US SOCIAL VALUES CRISTINA AN IMPORTED CUBANAMERICAN TV TALK SHOW WHICH APES OPRAH IN ITS QUEST FOR TITILLATING PSYCHOLOGICAL AND SEXUAL TRENDS HAS SPARKED AN UPROAR AMONG SOCIALLY CONSERVATIVE MEXICANS BUT ECONOMIC NATIONALISM IS A DEAD ISSUE IN MEXICO SOME 86 OF THOSE QUESTIONED LAST MONTH BY WORLDRESEARCH INC A BIRMINGHAM MICH POLLSTER SAID MR SALINAS IS DOING A GOOD OR FAIR JOB ON FOREIGN POLICY WHILE ONLY 11 RATED HIS PERFORMANCE POOR IN ALMOST THE REVERSE OF THE SITUATION IN THE US THE MAIN MEXICAN OPPOSITION TO FREE TRADE COMES FROM INTELLECTUALS AND SMALL BUSINESSMEN RATHER THAN WORKERS THE BIBLE OF OPPONENTS IS A BOOK CALLED DEAD END ALLEY BY JOSE ANGEL CONCHELLO A POLITICIAN WHO LIES TO THE RIGHT OF MR CARDENAS BUT ARGUES THAT MEXICO IS EMBRACING THE TREATY TOO HASTILY THE BOOK IS A BESTSELLER BY MEXICAN STANDARDS THOUGH ONLY 18000 COPIES ARE IN PRINT MOST MEXICANS CAN'T AFFORD BOOKS LIKE DEAD END THAT COST TWICE THE BADLY ERODED DAILY MINIMUM WAGE THE ECONOMIC DURESS OF THE MEXICAN POPULATION ALONG WITH ITS YOUTH EXPLAINS THE POPULAR APPEAL OF FREE TRADE IN MEXICO MEXICANS HALF OF WHOM ARE UNDER THE AGE OF 20 HAVE LITTLE MEMORY OF HISTORIC GRUDGES BUT A CLEAR IMPRESSION OF PRESENT POVERTY SOME 59 OF THE RESPONDENTS OF ONE POLL SAID THEY WOULD BE WILLING TO FORM A SINGLE COUNTRY WITH THE US IF IT IMPROVED QUALITY OF LIFE THIS NEW GENERATION LEARNED ABOUT THE PROSPERITY OF EL NORTE THROUGH DIRECT EXPERIENCE TENS OF THOUSANDS OF MEXICANS HAVE EMIGRATED MOST OF THEM ILLEGALLY TO THE US SINCE THE 1980S THEY DON'T FEAR THE US SAYS IMMIGRATION EXPERT JORGE DURAND BECAUSE THEY'VE BEEN INSIDE THE BELLY OF THE MONSTER AND KNOW WHAT IT'S LIKE IMMIGRATION HAS CERTAINLY PAVED THE WAY FOR RAPID EMBRACE OF US INVESTORS IN THE CENTRAL MEXICO TOWN OF SAN JOSE ITURBIDE ONE BARRIO HERE IS CALLED CHIQUITA PASADENA OR LITTLE PASADENA AFTER THE CALIFORNIA CITY WHERE MANY LOCAL SONS ARE WORKING ITS RESIDENTS ARE EAGER FOR COLGATE PALMOLIVE TO FINISH THE PLANT IT IS BUILDING A MILE AWAY THE COLGATE PLANT WHICH WILL SERVE THE GROWING DOMESTIC MARKET IS ANCHORING A PLANNED INDUSTRIAL CORRIDOR THAT WOULD BENEFIT FROM THE COMING OF FREE TRADE IF COLGATE AND FREE TRADE CAN MAKE THIS PLACE MORE LIKE THE UNITED STATES THEN THAT'S VERY GOOD SAYS ARTURO SOTO A TEENAGER STANDING BY THE FRONT DOOR OF A TROPICAL IMITATION OF A CALIFORNIA SPLITLEVEL HE KNOWS THERE IS LOTS OF MONEY IN THE US BECAUSE THE RAM CHARGER TRUCK IN THE DRIVEWAY AND THE HOUSE ITSELF WERE BOUGHT WITH DOLLARS WIRED HOME BY THREE BROTHERS WORKING ON PASADENA CONSTRUCTION CREWS THE SIX SOTO SIBLINGS WHO STAYED BEHIND DON'T KNOW ALL THE DETAILS ABOUT FREE TRADE SOME THINK THE DEAL IS ALREADY DONE BUT THEY DO UNDERSTAND THAT IT IS SUPPOSED TO CREATE THE KIND OF JOBS THAT MEXICANS MUST CURRENTLY GO NORTH TO FIND HIS SISTER ARTEMIA HAS SEEN PHOTOS OF THE ROSE BOWL PARADE AND SAYS SHE THINKS FREE TRADE WILL MAKE MEXICO WEALTHY ENOUGH TO SPONSOR SUCH AFFAIRS ITSELF ONE DAY MIGUEL BARRAGAN EDITOR OF THE REGION'S LARGEST NEWSPAPER AM SAYS HE IS WORRIED ABOUT XENOPHOBIA IN THE US IT SOMETIMES SEEMS THE UNITED STATES IS CRAWLING INTO A COCOON HE SAYS THE WIDESPREAD OUTRAGE IN THE US AGAINST FAILED ATTORNEY GENERAL CANDIDATE ZOE BAIRD'S EMPLOYMENT OF AN UNDOCUMENTED LATIN AMERICAN MAID WAS UNSETTLING TO PEOPLE HERE THE STRONG OPPOSITION TO FREE TRADE IS EVEN MORE DISTURBING IT'S DANGEROUS BECAUSE HOPES IN MEXICO ARE SO HIGH SAYS MR BARRAGAN INDEED ALMOST TWICE AS MANY MEXICANS EXPECT THEIR FINANCIAL SITUATION TO IMPROVE WITHIN A YEAR AS EXPECT IT TO WORSEN ACCORDING TO THE WORLDRESEARCH POLL JOSE LUIS GALLEGOS WHO RUNS A TINY CATERING SERVICE IN SAN JOSE ITURBIDE HOPES HE WILL WIN CUSTOMERS IN THE PLANNED INDUSTRIAL CORRIDOR BY IMPRESSING PLANT MANAGERS WITH THE ENGLISH HE LEARNED AS A PARKING ATTENDANT IN CALIFORNIA WHAT IF THERE IS NO FREETRADE AGREEMENT IT WOULD BE A BLOW FROM BLONDIE SAYS MR GALLEGOS IN MEXICO'S CARTOONISH PROFESSIONAL WRESTLING MATCHES EL FABULOSO BLONDIE IS A BOMBASTIC AMERICAN IN RED WHITE AND BLUE TIGHTS HIS SPECIALTY IS THE SUCKER PUNCH 9304200033 930420 BUSINESS BRIEF STORAGE TECHNOLOGY CORP FIRM TO BUY COMPONENTS FROM MATSUSHITA ELECTRIC STORAGE TECHNOLOGY CORP SAID IT SIGNED A CONTRACT WITH MATSUSHITA ELECTRIC INDUSTRIAL CO TO PURCHASE MORE THAN 200 MILLION OF COMPONENTS FOR ONE OF ITS COMPUTER DATA STORAGE DEVICES STORAGE TECHNOLOGY SAID THE AGREEMENT CALLS FOR MATSUSHITA'S PANASONIC DIVISION TO PROVIDE HELICALSCAN DEVICES FOR USE IN ITS REDWOOD TAPELIBRARY PRODUCT WHICH THE COMPANY EXPECTS TO BEGIN PRODUCING LATE NEXT YEAR LAST YEAR THE LOUISVILLE COLO COMPANY SAID IT WOULD DEVELOP THE PRODUCT USING THE VIDEO RECORDING TECHNOLOGY DEVELOPED BY PANASONIC STORAGE TECHNOLOGY'S ROBOTIC TAPE LIBRARIES STORE AND RETRIEVE DATA IN MUCH THE SAME WAY A JUKEBOX PLAYS RECORDS THE REDWOOD SYSTEM WHICH IS DESIGNED FOR COMPUTER USERS WITH HUGE STORAGE NEEDS CAN STORE UP TO 25 BILLION CHARACTERS OF UNCOMPRESSED DATA 9304200032 930420 WHAT'S NEWS BUSINESS AND FINANCE THE SENATE'S TOP REPUBLICAN ON THE APPROPRIATIONS COMMITTEE OUTLINED A PROPOSAL THAT WOULD SALVAGE NEARLY HALF OF CLINTON'S ECONOMIC STIMULUS BILL WHILE DEMANDING OFFSETTING CUTS TO COVER MUCH OF THE COST IN FUTURE YEARS THE PROPOSAL GOES FURTHER THAN ANYTHING SO FAR FROM GOP LEADERS FED CHAIRMAN GREENSPAN SAID THE CENTRAL BANK MUST BE ESPECIALLY VIGILANT IN GUARDING AGAINST INFLATION SUGGESTING THAT THE FED IS PREPARED TO RAISE INTEREST RATES IF NECESSARY FIFTEEN DRUG MAKERS AGREED TO CONDUCT JOINT STUDIES OF EXPERIMENTAL AIDS MEDICINES SEVERAL SCIENTISTS HAILED THE ACCORD BUT SOME ACTIVISTS SAID IT DOESN'T GO FAR ENOUGH CHASE MANHATTAN WROTE DOWN ITS REAL ESTATE HOLDINGS WITH A NEARLY 900 MILLION CHARGE AGAINST EARNINGS THE BANK PLANS TO SELL 750 MILLION IN STOCK ITS SHARE PRICE SANK 2375 TO 3450 CHRYSLER POSTED A 42 BILLION FIRSTQUARTER LOSS DUE TO AN EXPECTED CHARGE TO ACCOUNT FOR RETIREE MEDICAL BENEFITS THE CAR MAKER'S STOCK SLID 175 OR 4 TO 42 ON FEARS THAT THE COMPANY'S SURGE IN OPERATING PROFIT IS PEAKING THE DOLLAR SANK MORE THAN 1 AGAINST THE MARK AND THE YEN ON THE CLINTON ADMINISTRATION'S APPARENT ENDORSEMENT OF A WEAKER US CURRENCY STOCKS FELL WHILE BOND PRICES GAINED THE OFFICE VACANCY RATE ROSE TO 199 A SIXYEAR HIGH IN THE FIRST QUARTER IN CENTRAL BUSINESS DISTRICTS SUBURBAN VACANCIES STAYED AT 204 TRANSAMERICA SOLD ITS PROPERTY AND CASUALTY INSURANCE UNIT THROUGH A PUBLIC OFFERING THAT RAISED 1 BILLION THE PRICE WAS MORE THAN FIRST EXPECTED JONES DAY REAVIS & POGUE AGREED TO PAY THRIFT REGULATORS 51 MILLION TO SETTLE CLAIMS THAT THE LAW FIRM AIDED IN THE LOOTING OF LINCOLN S&L BANC ONE AGREED TO BUY NEBRASKA BANK FIRSTIER FOR 674 MILLION IN STOCK FIRSTIER'S STOCK SOARED 9 OR 20 TO 5450 BANC ONE FELL 1375 TO 58125 LIBERTY MEDIA OFFERED TO BUY MORE HOME SHOPPING NETWORK STOCK TO TRY TO BOOST CONFIDENCE IN THE RETAILER AFTER LIBERTY WITHDREW A BIGGER BID HOME SHOPPING STOCK SURGED 175 TO 625 PHILIP MORRIS NAMED A NEW OFFICIAL TO OVERSEE THE PRESIDENT OF ITS TROUBLED US TOBACCO UNIT AND REPLACED THE UNIT'S TOP MARKETING EXECUTIVE MERRILL LYNCH STOPPED PRESSING SOME SMALL CORPORATE CLIENTS FOR EXTRA BUSINESS AS PART OF AGREEMENTS FOR MERRILL TO LEND MONEY TO THE CLIENTS THE SHIFT CAME AFTER SECURITIES FIRMS CRITICIZED BANKS FOR SIMILAR PRACTICES AMOCO PLANS TO SPEND 15 BILLION TO DEVELOP AN OIL FIELD IN THE SOUTH CHINA SEA THE BIGGEST OIL DISCOVERY IN AN AREA THAT HAS PROVED DISAPPOINTING NISSAN'S US SALES ARM IS LAYING OFF 115 WORKERS IN ANOTHER RETREAT FROM TRADITIONAL JAPANESE JOB SECURITYSPS DEPRENYL RESEARCH'S FOUNDER IS RETIRING AS ITS COCHAIRMAN SUGGESTING THE PHARMACEUTICAL CONCERN WILL MOVE AWAY FROM HIS UNCONVENTIONAL PROMOTION OF ITS PRODUCTS AND ITS STOCK BONDS LEHMAN BROTHERS TREASURY INDEX 514144 UP 1595 COMMODITIES OIL 1999 A BARREL OFF 15 CENTS DOW JONES FUTURES INDEX 12508 UP 017 SPOT INDEX 12129 OFF 065 9304200031 930420 COMMODITIES PRECIOUS METALS FUTURES END MIXED WITH SURGE IN PRICE OF GOLD AND RETREAT BY PLATINUM SILVER BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRECIOUS METALS FUTURES PRICES ENDED MIXED IN VOLATILE TRADING WITH GOLD CLIMBING MORE THAN 1 TO SETTLE ABOVE 341 ON FRESH SPECULATIVE BUYING BY COMMODITY FUNDS PLATINUM AND SILVER ON THE OTHER HAND RETREATED ON PROFITTAKING TRADERS SAID ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR JUNE DELIVERY ENDED 130 HIGHER AT 34150 AN OUNCE WHILE SILVER FOR JULY DELIVERY FELL 13 CENTS TO 3938 AN OUNCE ON THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR JULY DELIVERY FINISHED 20 CENTS LOWER AT 37120 AN OUNCE WHILE PALLADIUM FOR SEPTEMBER DELIVERY CLOSED 175 HIGHER AT 11120 AN OUNCE ANALYSTS SAID THAT GOLD'S FIRMING TONE ABOVE THE 340 LEVEL MAY AUGUR A GENERAL BROADBASED RISE IN FUTURES PRICES OF ALL PRECIOUS METALS IN COMING MONTHS FOR A BROADBASED PRECIOUS METALS RALLY TO OCCUR IT'S NECESSARY FOR GOLD TO HAVE THE LEADERSHIP FUNCTION AND I THINK ITS DISPLAYING THAT PATTERN SAID WILLIAM O'NEILL SENIOR FUTURES STRATEGIST WITH MERRILL LYNCH & CO OTHER ANALYSTS SAID THE MARKET IN PRECIOUSMETALS FUTURES WITH ITS INCREASING VOLATILITY IS ATTRACTING GROWING INTEREST AMONG INSTITUTIONAL INVESTORS AND MONEY MANAGERS THEY CAUTION HOWEVER THAT GOLD HAS EXPERIENCED SEVERAL PROMISING UPTURNS THIS YEAR THAT ULTIMATELY HAVE BEEN EXTREMELY SHORTLIVED WE'RE GETTING A TREMENDOUS AMOUNT OF CALLS FROM MONEY MANAGERS WHO ARE STARTING TO LOOK AT THE GOLD MARKET FOR THE FIRST TIME IN YEARS SAID IAN MACDONALD A SENIOR METALS ANALYST WITH CREDIT SUISSE THE AWARENESS IS DEFINITELY RISING THAT GOLD SEEMS UNDERVALUED AS A COMMODITY AND THAT OTHER PRECIOUS METALS COULD BE PULLED UP WITH IT HE SAID I'M BEGINNING TO FEEL THAT THIS MARKET IS PRIMING ITSELF TO MOVE HIGHER MR MACDONALD ADDED HE CITED THE ABSENCE OF GOLD BULLION SALES BY CENTRAL BANKS AND THE FACT THAT WORLD DEMAND FOR GOLD HAS BEEN STRONG IT'S NOT GIVING UP IF WE SAW ANY FRESH INVESTMENT DEMAND COMING IN HERE IT WILL JUST PUSH THE PRICE EVEN HIGHER TO ENCOURAGE BROADER SPECULATIVE INVESTMENT IN GOLD HE SAID THE METAL WOULD HAVE TO PUSH DECISIVELY PAST 342 OTHER BULLISH CONSIDERATIONS FOR GOLD ANALYSTS NOTE ARE A WEAKENING DOLLAR AND THE PROSPECTS OF FURTHER INTEREST RATE DECLINES IN EUROPE TRADERS AND ANALYSTS SAID THAT PLATINUM'S SLIGHT RETREAT MONDAY WAS EXPECTED AS VIOLENCE IN SOUTH AFRICA THE WORLD'S LARGEST PRODUCER OF THE METAL APPEARS TO HAVE ABATED THE SHARP RISE IN PLATINUM FUTURES PRICES LAST WEEK ON NEWS OF VIOLENT PROTESTS WAS OVERDONE THEY SAID THERE WAS NO REAL THREAT TO PLATINUM SUPPLY DURING THE PERIOD OF UNRESTIT WOULD HAVE TAKEN A MUCH MORE EXAGGERATED LEVEL OF CIVIL DISORDER TO DISRUPT SUPPLY FLOWS SAID MR O'NEILL NEVERTHELESS PLATINUM IS STILL BEING BUOYED BY CONCERNS THAT SOUTH AFRICA REMAINS POTENTIALLY EXPLOSIVE DURING ITS PERIOD OF POLITICAL TRANSITION THE METAL USED EXTENSIVELY IN THE AUTOMOTIVE AND ELECTRONICS INDUSTRIES IS TRADING MORE THAN 13 HIGHER THAN A WEEK AGO TRADERS NOTE THAT PLATINUM FUTURES ARE ALSO BEING SUPPORTED BY FEARS THAT RUSSIAN SUPPLY DISRUPTIONS COULD TRIM ALREADY THIN STOCKPILES OF THE PRECIOUS METAL IN OTHER COMMODITY MARKETS YESTERDAY LIVESTOCK AND MEATS A SHARP INCREASE IN THE NUMBER OF HOGS COMING TO MARKET PUSHED DOWN THE PRICES OF PORKBELLY FUTURES FOR MONTHS THE US AGRICULTURE DEPARTMENT HAS BEEN PREDICTING THAT THE HOG SLAUGHTER THIS YEAR WILL TOP LAST YEAR'S FOR THE FIRST THREE MONTHS OF 1993 HOWEVER SLAUGHTER WAS TRAILING 1992 FIGURES LAST WEEK RECEIPT OF HOGS AT MARKETS BEGAN TO PICK UP RUNNING ABOUT 9 ABOVE RECEIPTS FOR THE SAME WEEK A YEAR EARLIER SAID DAN VAUGHT LIVESTOCK ANALYST FOR AG EDWARDS & SONS ST LOUIS SLAUGHTER IS STARTING TO RUN CLOSER TO THE LEVELS THE USDA IS CALLING FOR HE SAID AT THE CHICAGO MERCANTILE EXCHANGE PORK BELLIES FOR MAY DELIVERY PLUNGED THE DAILY LIMIT OF TWO CENTS TO 47175 CENTS A POUND ENERGY OIL FUTURES DRIFTED LOWER IN GENERALLY LISTLESS TRADING THE MAY CRUDE OIL CONTRACT WHICH EXPIRES TODAY ON THE NEW YORK MERCANTILE EXCHANGE WAS DOWN 15 CENTS A BARREL IT SETTLED AT 1999 AFTER BREAKING THROUGH THE PSYCHOLOGICALLY IMPORTANT LEVEL OF 20 A BARREL CRUDE OIL FOR JUNE DELIVERY DECLINED NINE CENTS TO SETTLE AT 2029 A BARREL FUTURES PRICES OF FUELS WERE MOSTLY LOWER THERE WAS LITTLE FUNDAMENTAL NEWS TO AFFECT OIL MARKETS OTHER THAN A STATEMENT FROM ALIRIO PARRA VENEZUELA'S OIL MINISTER AND THE PRESIDENT OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES WHICH REITERATED EXPECTATIONS THAT OPEC'S APRIL OIL PRODUCTION WILL BE LOWER THAN THE MARCH'S OUTPUT ORANGE JUICE FUTURES PRICES OF FROZEN CONCENTRATED ORANGE JUICE FELL SHARPLY IN MOSTLY TECHNICAL TRADING ANALYSTS SAID ON THE NEW YORK COTTON EXCHANGE ORANGE JUICE FOR MAY DELIVERY SETTLED 340 CENTS LOWER AT 8925 CENTS A POUND WE'RE BACK INTO THE SEASON WHERE FLORIDA FROZEN CONCENTRATED JUICE STOCKS SHOULD ONCE AGAIN BEGIN BUILDING ON A WEEKLY BASIS SAID SANDRA KAUL A SENIOR COMMODITY ANALYST WITH SHEARSON LEHMAN BROTHERS SHE POINTED OUT THAT ORANGE JUICE FUTURES ARE WEAKER ON RECENT REPORTS THAT CROP DAMAGE TO FLORIDA CITRUS PRODUCTION WAS LESS THAN ORIGINALLY THOUGHT IN THE WAKE OF THE SEVERE WINTER STORM LAST MONTH CONCERN ABOUT POSSIBLE CROP DAMAGE HAD HELPED ORANGE JUICE FUTURES TO RALLY FROM A RECENT LOW OF 70 CENTS TO 95 CENTS BY MIDLAST WEEK DURING THE PAST FEW TRADING SESSIONS THE ACTIVELY TRADED MAY CONTRACT HAS RETREATED CONSIDERABLY 9304200030 930420 IOWA NEWSLETTER WRITER EMERGES AS LACTOSE EXPERT BY SUEIN L HWANG WHEN JOHNSON & JOHNSON'S MCNEIL CONSUMER PRODUCTS CO FIRST CONCEIVED OF A HOME TEST FOR LACTOSE INTOLERANCE IT FLOATED THE IDEA WITH THE COUNTRY'S BESTKNOWN EXPERT AN IOWA MOTHER OF FOUR JANE ZUKIN OF IOWA CITY SAYS SHE WAS FLATTERED I DON'T HAVE A MASTER'S DEGREE BUT I'VE DONE MY RESEARCH WELL THROUGH HER NEWSLETTER FOR LACTOSE INTOLERANCE AND MILK ALLERGY MS ZUKIN HAS EMERGED AS A NATIONAL GURU ON THE AILMENT A PUBLICRELATIONS SPECIALIST BY PROFESSION SHE NOW CONSULTS OFTEN WITH BIG MANUFACTURERS AND ADVERTISING AGENCIES EAGER FOR HER EXPERTISE ON LACTOSE INTOLERANCE AND THOUGH THE CIRCULATION OF HER NEWSLETTER STANDS AT ONLY ABOUT 1000 SHE RECENTLY HAS FOUND HERSELF HANDLING A BARRAGE OF MEDIA REQUESTS SHE SAYS HER QUOTES CAN BE FOUND IN NEWSPAPERS IN EVERY STATE MS ZUKIN HAS ALSO GAINED A CONSIDERABLE FOLLOWING WITHIN THE MEDICAL COMMUNITY THE NATIONAL DIGESTIVE DISEASES INFORMATION CLEARINGHOUSE AN ARM OF THE NATIONAL INSTITUTES OF HEALTH REFERS HOSPITALS AND CALLERS LOOKING FOR MORE INFORMATION ABOUT THE CONDITION TO MS ZUKIN SHE WAS OUR FINAL AUTHORITY SAYS MARY DODDS A NUTRITIONIST AT THE UNIVERSITY OF NEVADA COOPERATIVE EXTENSION WHO WROTE A BROCHURE ON LACTOSE INTOLERANCE FOR AREA PHYSICIANS SOME RESEARCHERS HOWEVER SEE MS ZUKIN'S PREEMINENCE IN THE FIELD AS PART OF A DISTURBING TREND LACTOSE INTOLERANCE IGNORED BY MOST IN THE SCIENTIFIC COMMUNITY HAS BEEN TAKEN OVER BY PEOPLE WHO HAVE AXES TO GRIND COMMERCIAL INTERESTS AND EVANGELICAL PATIENTS SAYS DOUGLAS MCGILL OF THE MAYO MEDICAL SCHOOL MS ZUKIN BEGAN HER NEWSLETTER IN 1986 AFTER HER SON WAS BORN WITH A RARE ALLERGY TO MILK AND HAS WRITTEN THREE DAIRYFREE COOKBOOKS SHE SEES HERSELF AS AN INTERPRETER ON THE SUBJECT SHE RECEIVES NO FUNDING FROM INDUSTRY AND SAYS HER NEWSLETTER RUN ON HALF A SHOESTRING MERELY PAYS FOR ITSELF I'M NOT GIVING MEDICAL ADVICE SHE SAYS I'M A REGULAR PERSON AND A WRITER AND I KNOW HOW TO PUT THAT PHYSIOLOGICAL TALK INTO A LANGUAGE PEOPLE CAN UNDERSTAND SHE SAYS SHE IS DISTURBED BY THE AGGRESSIVE TONE OF THE INDUSTRY'S MARKETING AND JOHNSON & JOHNSON'S SELFDIAGNOSTIC TEST ADVERTISERS MAY SEEK HER OUT BUT THEY DON'T ALWAYS TAKE HER ADVICE THOUGH MS ZUKIN SAYS SHE VOICED HER RESERVATIONS ABOUT THE TEST TO JOHNSON & JOHNSON MARKETERS THE COMPANY WENT AHEAD ANYWAY SEE RELATED STORY MARKETSCAN MAKERS OF REMEDIES BREED A CASH COW AS THEY PUBLICIZE LACTOSE INTOLERANCE WSJ APRIL 20 1993 9304200029 930420 REVIEW & OUTLOOK EDITORIAL ASIDES PIRATES OF THE POTOMAC THE US CONGRESS EMPLOYS SO MANY PEOPLE NOW THAT AN IDEA IS BEING FLOATED TO CONTRACT OUT ITS NOW MONOPOLIZED RESTAURANT BUSINESS PERHAPS EVEN TO SOME NOTABLE FASTFOOD OUTLETS BUT A MEMBER OF A LOCAL UNION TOLD ROLL CALL WE DON'T THINK THE HILL SHOULD BE HAVING BURGER KINGS AND MCDONALDS THIS IS NOT DISNEY WORLD MAYBE SO BUT BOTH PLACES DO MAKE YOU PAY WHEN THEY TAKE YOU FOR A RIDE 9304200028 930420 CREDIT RATING MOODY'S DOWNGRADES ITOCHU DEBT CITING RISK IN DIVERSIFICATION NEW YORK MOODY'S INVESTORS SERVICE INC LOWERED ITS RATINGS ON THE SENIOR DEBT AND COMMERCIAL PAPER OF JAPANESE TRADING GIANT ITOCHU CORP CITING THE RISKS IN ITOCHU'S DIVERSIFICATION STRATEGY ABOUT 27 BILLION OF LONGTERM DEBT IS AFFECTED THE SENIOR RATINGS OF ITOCHU AND ITS SUPPORTED SUBSIDIARIES WERE LOWERED TO SINGLEA3 FROM SINGLEA1 AND THE COMMERCIAL PAPER WAS LOWERED TO PRIME2 FROM PRIME1 THE ITOCHU DOWNGRADE FOLLOWS MOODY'S DOWNGRADES OF TWO OTHER TRADING GIANTS MITSUBISHI CORP AND MARUBENI CORP IN FEBRUARY FOR THE SAME REASONS MOODY'S SAID IT WAS CONCERNED ABOUT THE IMPACT OF ITOCHU'S DIVERSIFICATION STRATEGY ON ITS CAPITAL AND LONGTERM PROFITABILITY ITOCHU AND THE OTHER JAPANESE TRADING COMPANIES HAVE BEEN SEEKING TO DIVERSIFY AS THEIR ABILITY TO GET ADEQUATE PROFIT MARGINS FROM THEIR TRADITIONAL ROLE AS EXPORTIMPORT MIDDLEMEN DIMINISHES MOODY'S SAID ITOCHU HAS PLACED EMPHASIS ON NEW AND NICHE AREAS INCLUDING SATELLITE COMMUNICATIONS AND CABLE TELEVISION AS WELL AS THE CONSUMER MARKET IN JAPAN DIRECT INVESTMENTS AND ALLIANCES WITH FOREIGN COMPANIES AND LARGESCALE DEVELOPMENT PROJECTS DESPITE MAJOR CAPITAL COMMITMENTS THE DIVERSIFICATION EFFORTS MAY NOT CONTRIBUTE MUCH TO EARNINGS FOR A LONG TIME MOODY'S NOTED ALSO ITOCHU AND ITS ITOCHU FINANCE AFFILIATE HAVE HAD SUBSTANTIAL UNREALIZED LOSSES ON SECURITIES INVESTMENTS MOODY'S SAID THE COMPANY'S SIGNIFICANT EXPOSURE TO BOTH JAPANESE AND OVERSEAS REAL ESTATE MARKETS ALSO REMAINS A CONCERN ITOCHU IS BASED IN OSAKA OFFICIALS AT ITS NEW YORK OFFICE SAID THEY HADN'T YET SEEN THE MOODY'S REPORT AND COULDN'T COMMENT 9304200027 930420 WHO'S NEWS DIASONICS INC DIASONICS INC MILPITAS CALIF WILLIAM BRODY DIRECTOR AND RADIOLOGIST IN CHIEF AT THE JOHNS HOPKINS HOSPITAL AND UNIVERSITY IN BALTIMORE RESIGNED FROM THE BOARD OF THIS MAKER OF ULTRASOUND AND XRAY DEVICES NO SUCCESSOR HAS BEEN NAMED 9304200026 930420 VOLKSWAGEN OUTLOOK ON CHINA WOLFSBURG GERMANY VOLKSWAGEN AG SEES THE POTENTIAL FOR HUGE GROWTH IN BOTH MAINLAND CHINA AND TAIWAN A VW SPOKESMAN CONFIRMED A REPORT THAT WILL APPEAR IN DIE WOCHE A GERMAN NEWSPAPER THAT SAID VW ESTIMATES THE CHINESE MARKETS COULD COMPRISE SALES OF ONE MILLION CARS BY THE YEAR 2000 IN 1992 GERMANY'S BIGGEST AUTO MAKER HAD SALES OF 90000 VEHICLES IN THE CHINESE MARKETS TO MEET THE SURGE IN DEMAND VW PLANS TO INVEST TWO BILLION MARKS 124 BILLION DURING THE 1990S TO EXPAND PRODUCTION IN ASIA VW CURRENTLY PRODUCES THE SANTANA MODEL IN ITS SHANGHAI FACILITIES 9304200025 930420 FORD TO SEEK DEALERS IN CHINA DEARBORN MICH FORD MOTOR CO SAID IT WANTS TO RECRUIT DEALERS IN CHINA TO SELL EXPORTED VEHICLES FROM NORTH AMERICAN ASSEMBLY PLANTS FORD SAID IT EXPECTS TO HAVE SIX OR MORE DEALERS SIGNED UP IN CHINA BY YEAR END TO SELL AND SERVICE ITS FORD TEMPO TAURUS CROWN VICTORIA AND AEROSTAR MINIVAN AND THE LINCOLN TOWN CAR THROUGH FORD NORTH AMERICAN EXPORT SALES FORD SAID IT PLANS TO HAVE DEALER REPRESENTATION IN THE CITIES OF BEIJING SHANGHAI SHENYANG AND DALIAN BY THE MIDDLE OF THIS YEAR AND PLANS TO SELL ABOUT 1000 VEHICLES IN THE SECOND HALF 9304200024 930420 SUPREME COURT LETS STAND LAW DISMISSING TIME LIMIT ON SUITS WASHINGTON THE SUPREME COURT DECLINED TO HEAR A CHALLENGE TO A FEDERAL LAW THAT REINSTATED LAWSUITS SEEKING BILLIONS OF DOLLARS IN DAMAGES FROM MICHAEL MILKEN CHARLES KEATING AND OTHER FIGURES IN FINANCIAL SCANDALS OF THE 1980S THE JUSTICES LET STAND A LOWER COURT RULING THAT SAID CONGRESS HAD THE AUTHORITY TO PREVENT TOUGH NEW TIME LIMITS IMPOSED BY THE COURT IN JUNE 1991 FROM BEING APPLIED RETROACTIVELY IN ITS 1991 RULING THE HIGH COURT SAID THAT A FEDERAL SECURITIESFRAUD SUIT FILED BY SHAREHOLDERS MUST BE BROUGHT WITHIN ONE YEAR AFTER THE ALLEGED FRAUD IS DISCOVERED OR WITHIN THREE YEARS AFTER IT OCCURRED SUCH SUITS PREVIOUSLY WERE SUBJECT TO STATELAW TIME CONSTRAINTS THAT OFTEN WERE MORE FAVORABLE TO PLAINTIFFS THE HIGH COURT APPLIED THE FEDERAL LIMITS RETROACTIVELY PROMPTING LOWER COURTS TO DISMISS A LARGE NUMBER OF LAWSUITS THAT WERE PENDING AT THE TIME BUT IN DECEMBER 1991 CONGRESS APPROVED LEGISLATION REINSTATING THOSE SUITS THAT WERE FILED BEFORE THE 1991 SUPREME COURT DECISION DEFENDANTS IN NUMEROUS SECURITIESFRAUD CASES HAVE CHALLENGED CONGRESS'S AUTHORITY TO REINSTATE A SPECIFIC GROUP OF LAWSUITS IN THIS MANNER BUT THE FEDERAL APPEALS COURT IN DENVER SAID CONGRESS COULD REVIVE A CATEGORY OF PENDING LAWSUITS WITHOUT CHANGING THE PROCEDURAL RULES FOR ALL SUCH SUITS FILED IN THE FUTURE THE JUSTICE DEPARTMENT AND SECURITIES AND EXCHANGE COMMISSION ENDORSED THE LEGISLATION 9304200023 930420 BUSINESS BRIEF GTE CORP UPGRADE OF CELLULAR SYSTEMS FINISHED IN CALIFORNIA AREAS GTE CORP STAMFORD CONN SAID ITS GTE MOBILNET SUBSIDIARY COMPLETED A 115 MILLION CONVERSION OF EXISTING CELLULAR SYSTEMS TO AN ADVANCED DIGITALSWITCHING SYSTEM IN 13 NORTHERN CALIFORNIA AND CENTRAL COAST COUNTIES THE UPGRADE ONE OF THE LARGEST SUCH SYSTEM CONVERSIONS IN THE US BOOSTS CAPACITY BY 30 GTE SAID THE DIGITAL SWITCHING SYSTEM ALSO PROVIDES GREATER CALL CLARITY AND QUALITY FASTER CALL PROCESSING FEWER DROPPED AND BLOCKED CALLS AND REMOTE TUNEUP CAPABILITIES GTE SAID THE SWITCHES WERE ACQUIRED FROM AMERICAN TELEPHONE & TELEGRAPH CO THE NORTHERN CALIFORNIA CONVERSION IS PART OF A THREEYEAR 600 MILLION NATIONWIDE EFFORT THAT WILL BE COMPLETED THIS YEAR BY GTE MOBILNET GTE IS A SUPPLIER OF TELECOMMUNICATIONS LIGHTING AND PRECISION MATERIALS 9304200022 930420 ABREAST OF THE MARKET STOCKS FALL BACK FROM RECORDS AS TECHNOLOGIES AIRLINES FALTER BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WEAKNESS IN TECHNOLOGY AND AIRLINE ISSUES PUSHED STOCK PRICES OFF THE RECORD LEVELS THEY REACHED FRIDAY WORRIES INSPIRED BY A STEEP PLUNGE IN NASDAQLISTED INTEL DOWN 12 1/4 OR 11 TO 97 3/4 AND FEARS OF A NEW PRICE WAR IN THE AIRLINE INDUSTRY TRIGGERED THE LOSSES THE DOW JONES INDUSTRIAL AVERAGE WHICH JUMPED 2269 OR 066 ON FRIDAY FELL 1162 OR 033 TO 346699 FRIDAY'S ADVANCE CARRIED IT JUST ABOVE A RECORD HIGH THAT HAD STOOD SINCE MARCH 10 LONG RECORDSETTING STREAKS IN THE OTHER SPECIALIZED DOW JONES AVERAGES ENDED THE TRANSPORTATION AVERAGE WHICH HAD SET SUCCESSIVELY HIGHER RECORDS EACH DAY LAST WEEK FELL 1591 OR 095 TO 166717 THE UTILITIES AVERAGE WHICH HAD ENDED AT PEAKS FOR EIGHT STRAIGHT SESSIONS SANK 231 OR 093 TO 24537 THERE IS SOME VERY NORMAL PROFITTAKING COMING INTO SOME AREAS THAT HAVE BEEN UP UP AND AWAY SAID ALFRED GOLDMAN DIRECTOR OF TECHNICAL ANALYSIS AT AG EDWARDS HE PREDICTED STOCK PRICES WILL CONTINUE TO ERODE OVER THE NEXT MONTH THE STANDARD & POOR'S 500 STOCK INDEX TUMBLED 148 OR 033 TO 44746 WHILE THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX DECLINED 072 OR 029 TO 24702 SOME OF THE WEAKNESS ANALYSTS SAID WAS A GIVEBACK FROM FRIDAY AFTERNOON THE MARKET SHOT HIGHER IN THE FINAL HOURS OF THAT SESSION ON BUYING THAT TRADERS TIED TO MONTHLY OPTIONS EXPIRATIONS OFTEN SOME OF THE GAINS ON EXPIRATION DAYS ARE REVERSED THE NEXT SESSION ANALYSTS SAID BUT DALE TILLS A VICE PRESIDENT OF TRADING AT CHARLES SCHWAB SAID BLUECHIP ISSUES WERE DUE FOR SOME SELLING AFTER THEIR RECENT RALLY THE INDUSTRIAL AVERAGE JUMPED 82 POINTS OR 24 LAST WEEK ALONE SOME OF THE ECONOMICALLY SENSITIVE AND ENERGY STOCKS THAT HAD BEEN LIFTING THE INDUSTRIAL AVERAGE TURNED WEAK YESTERDAY ALLIEDSIGNAL FELL 1 1/4 TO 69 MINNESOTA MINING & MANUFACTURING DROPPED 1 TO 115 AND EXXON DECLINED 1 1/8 TO 67 7/8 THE SAME NEWS THAT TOPPLED INTEL SENT SHARES OF ADVANCED MICRO DEVICES SOARING ON THE BIG BOARD THE STOCK JUMPED 3 7/8 TO 28 ON MARKETLEADING VOLUME OF 54 MILLION SHARES A JUDGE DISMISSED A JURY VERDICT THAT HAD PREVENTED THE SUNNYVALE CALIF CONCERN FROM SELLING A CLONE OF INTEL'S 486 COMPUTER MICROCHIP THAT USED INTEL'S MICROCODE SOFTWARE BUT TRADERS SAID MOST TECHNOLOGY STOCKS TOOK THEIR LEAD FROM INTEL WHICH HAS BEEN AMONG THE STRONGEST TECHNOLOGY ISSUES OF LATE TEXAS INSTRUMENTS LOST 1 TO 53 5/8 MOTOROLA DROPPED 1/2 TO 70 5/8 HEWLETTPACKARD FELL 1 1/4 TO 73 1/4 AND COMPAQ COMPUTER SKIDDED 1 1/8 TO 49 3/4 NEWS OVER THE WEEKEND THAT NORTHWEST AIRLINES PLANS TO CUT PRICES 35 ON SOME ROUTES SENT THE AIRLINE GROUP SLIDING OTHER MAJOR CARRIERS YESTERDAY SAID THEY PLAN TO MATCH THE REDUCTIONS AIRLINE SHARES SOARED LAST WEEK SO INVESTORS WERE QUICK TO TAKE PROFITS TRADERS SAID UAL THE PARENT OF UNITED DROPPED 3 7/8 TO 141 7/8 DELTA AIR LINES LOST 1 1/8 TO 56 3/4 SOUTHWEST AIRLINES DECLINED 1 3/8 TO 41 AND AMR THE PARENT OF AMERICAN AIRLINES SLUMPED 2 TO 66 5/8 USAIR THOUGH ADDED 3/8 TO 23 CHRYSLER FELL 1 3/4 TO 42 EVEN THOUGH THE AUTO MAKER'S FIRSTQUARTER OPERATING EARNINGS TOPPED MANY ANALYSTS' EXPECTATIONS OBSERVERS NOTED THAT THE STOCK HAD GAINED IN ADVANCE OF THE NEWS MEANWHILE A HUGE CHARGE FROM AN ACCOUNTING CHANGE ERASED ALL THE OPERATING EARNINGS TIG HOLDINGS RAISED ABOUT 1 BILLION BY SELLING 44225000 COMMON SHARES AT 22625 APIECE THROUGH AN INITIAL PUBLIC OFFERING PRICED AFTER THE MARKET CLOSED THE SHARES REPRESENT A STAKE IN TRANSAMERICA CORP'S PROPERTY AND CASUALTY INSURANCE BUSINESS STRONG INVESTOR DEMAND PROMPTED UNDERWRITERS LED BY MORGAN STANLEY TO BOOST THE SIZE OF THE OFFERING FROM THE ORIGINALLY PLANNED 30 MILLION SHARES FOLLOWING THE OFFERING TRANSAMERICA WILL HOLD A 26 STAKE IN THE NEW COMPANY HOME SHOPPING NETWORK SURGED 1 3/4 TO 6 1/4 LIBERTY MEDIA SAID IT HAS PROPOSED A 7ASHARE TENDER OFFER FOR AS MANY AS 15 MILLION SHARES OF THE ST PETERSBURG FLA CABLE TELEVISION SHOPPING CHANNEL OPERATOR LIBERTY SHARES SLIPPED 1/8 TO 16 3/4 IN NASDAQ TRADING DRUG STOCKS WERE AMONG THE FEW BRIGHT SPOTS IN THE MARKET SEVERAL INDUSTRY LEADERS POSTED IMPROVED EARNINGS MEANWHILE MERCK RELEASED MORE DETAILS OF ITS PLAN FOR THE PHARMACEUTICAL INDUSTRY TO CONTROL ITS PRICES VOLUNTARILY AN EFFORT TO HEAD OFF NEW GOVERNMENT REGULATIONS MERCK JUMPED 1 7/8 TO 35 7/8 IT ALSO POSTED FIRSTQUARTER NET INCOME OF 54 CENTS A SHARE COMPARED WITH EARNINGS FROM OPERATIONS OF 48 CENTS LAST YEAR ANALYSTS HAD EXPECTED THE CONCERN TO HAVE A PROFIT OF 52 CENTS ACCORDING TO INSTITUTIONAL BROKERS ESTIMATE SYSTEM WARNERLAMBERT ADDED 2 TO 72 5/8 IT HAD A PROFIT FROM OPERATIONS OF 134 A SHARE IN THE FIRST QUARTER UP FROM NET INCOME OF 122 A YEAR AGO ELI LILLY CLIMBED 3/4 TO 46 3/8 IT HAD EARNINGS FROM OPERATIONS OF 127 A SHARE IN THE FIRST QUARTER COMPARED WITH EARNINGS FROM OPERATIONS OF 151 LAST YEAR THE RESULTS WERE IN LINE WITH EXPECTATIONS CHASE MANHATTAN DECLINED 2 3/8 TO 34 1/2 THE NEW YORK BANK HAD NET INCOME OF 74 CENTS A SHARE IN THE FIRST QUARTER COMPARED WITH 81 CENTS LAST YEAR THE LATEST QUARTER'S FIGURE INCLUDED SEVERAL LARGE NONRECURRING ITEMS THE YEARAGO FIGURE WAS AFTER A 21CENT GAIN SEPARATELY CHASE SAID IT PLANS TO OFFER 22 MILLION ADDITIONAL COMMON SHARES BANC ONE LOST 1 3/8 TO 58 1/8 THE COLUMBUS OHIO COMPANY AGREED TO BUY FIRSTIER FINANCIAL OF OMAHA NEB FOR 712 MILLION IN STOCK FIRSTIER SHARES SURGED 9 TO 54 1/2 IN NASDAQ TRADING ROCKEFELLER CENTER PROPERTIES LOST 1 1/8 TO 7 THIS WEEK'S BARRON'S MAGAZINE REPORTED THAT THE NEW YORK REAL ESTATE INVESTMENT TRUST'S PROSPECTS REMAIN DIM PARTLY BECAUSE OF A WEAK MARKET FOR OFFICE SPACE IN MANHATTAN COOPER TIRE & RUBBER FELL 3 1/8 TO 35 1/8 IT HAD NET INCOME OF 30 CENTS A SHARE IN THE FIRST QUARTER REVERSING ITS YEARAGO LOSS OF 55 CENTS THE FINDLAY OHIO CONCERN'S RESULTS LAST YEAR INCLUDED A 78CENT ACCOUNTING CHARGE 9304200021 930420 BUSINESS BRIEF BEVERLY ENTERPRISES INC FIRM HAD 1STPERIOD PROFIT AGAINST LOSS A YEAR EARLIER BEVERLY ENTERPRISES INC POSTED FIRSTQUARTER NET INCOME OF 104 MILLION OR 13 CENTS A SHARE COMPARED WITH A NET LOSS OF 3 MILLION OR FOUR CENTS A SHARE A YEAR EARLIER REVENUE CLIMBED 13 TO 6945 MILLION FROM 6134 MILLION PRIMARILY DUE TO A BOOST IN SERVICES PROVIDED TO MEDICARE AND PRIVATE PATIENTS SAID THE FORT SMITH ARK PROVIDER OF LONGTERM HEALTH CARE SCOTT TABAKIN VICE PRESIDENT AND CONTROLLER SAID BEVERLY'S PERCENTAGE OF MEDICARE PATIENTS IN THE FIRST QUARTER ROSE TO 236 FROM 193 A YEAR AGO MEDICARE PATIENTS ARE TYPICALLY SICKER THAN PRIVATE OR MEDICAID PATIENTS AND REQUIRE MORE SERVICES FROM PHYSICAL AND OTHER THERAPIES TO PHARMACEUTICALS HE SAID BEVERLY RESTATED ITS NET INCOME FOR THE FIRST QUARTER OF 1992 TO REFLECT A CHARGE OF 54 MILLION OR SEVEN CENTS A SHARE FROM THE ADOPTION OF ACCOUNTING CHANGES THE NET EFFECT WAS A LOSS OF 3 MILLION OR FOUR CENTS A SHARE COMPARED WITH PREVIOUSLY REPORTED NET INCOME OF 24 MILLION OR THREE CENTS A SHARE FOR THAT QUARTER THE COMPANY ALSO RECORDED IN THE FIRST QUARTER OF 1992 AN EXTRAORDINARY CHARGE OF 45 MILLION OR SIX CENTS A SHARE RELATED TO EARLY REPAYMENT OF CERTAIN DEBTS 9304200020 930420 TRANSAMERICA UNIT FETCHES ABOUT 1 BILLION SHARE OFFERING FOR INSURER CALLED TIG HOLDINGS IS ONE OF BIGGEST EVER BY CARRIE DOLAN STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO TRANSAMERICA CORP SAID IT SHED ITS PROPERTY AND CASUALTY INSURANCE UNIT THROUGH AN INITIAL PUBLIC OFFERING THAT RAISED 1 BILLION THE OFFERING REPRESENTS ONE OF THE LARGEST IN US HISTORY AND CONTINUES A TREND OF INSURANCE FIRMS CAPITALIZING ON A HOT MARKET FOR SHARES IN PROPERTY AND CASUALTY COMPANIES IN THE TRANSACTION A TOTAL OF 442 MILLION SHARES AT A PRICE OF 2263 EACH WERE SOLD OF THAT NUMBER 304 MILLION WERE SOLD BY TRANSAMERICA WHICH REAPED ABOUT 688 MILLION AN ADDITIONAL 138 MILLION WERE SOLD BY TIG HOLDINGS INC THE NEW COMPANY TIG HOLDINGS IS TO BEGIN TRADING ON THE NEW YORK STOCK EXCHANGE TODAY TRANSAMERICA'S PLANS TRANSAMERICA SAID ITS PROCEEDS WOULD BE USED TO INVEST IN ITS BUSINESSES TO PAY DOWN DEBT AND PERHAPS BUY BACK SHARES DUE TO STRONG DEMAND THE OFFERING PRICE WAS HIGHER THAN THE 19 TO 21 A SHARE RANGE INITALLY EXPECTED AND 50 MORE SHARES WERE OFFERED THAN HAD BEEN ORIGINALLY PLANNED LAST YEAR TRANSAMERICA SAID IT WOULD GET OUT OF THE PROPERTY AND CASUALTY BUSINESS IN ORDER TO FOCUS ON ITS CORE FINANCIAL SERVICES AND LIFE INSURANCE BUSINESSES AT THE TIME ANALYSTS VALUED THE BUSINESS AT 700 MILLION TO MORE THAN 1 BILLION TRANSAMERICA ORIGINALLY PLANNED TO RETAIN A 49 INTEREST IN TIG HOLDINGS BUT IN LIGHT OF THE STRONG DEMAND FOR THE SHARES DECIDED TO KEEP ONLY A 26 STAKE A SPOKESMAN SAID TRANSAMERICA'S LONGTERM PLAN HAS ALWAYS BEEN TO GET OUT OF THE BUSINESS COMPLETELY BUT HE WOULDN'T SAY WHEN IT WOULD SELL ITS REMAINING STAKE THE VALUE OF PROPERTY AND CASUALTY STOCKS HAVE RISEN SHARPLY RECENTLY INVESTORS BELIEVE INSURANCE COMPANIES WILL HAVE TO RAISE PRICES TO MAKE UP FOR LOSSES FROM HURRICANE ANDREW AND OTHER RECENT CATASTROPHES THUS ENDING A PRICE WAR THAT HAS BEEN ERODING PROFITS FOR SIX YEARS A NUMBER OF INSURANCE COMPANIES NOTABLY AMERICAN REINSURANCE CORP A MAJOR PROPERTY AND CASUALTY INSURER HAVE GONE PUBLIC RECENTLY TAKING ADVANTAGE OF THE FAVORABLE MARKET CONDITIONS ALLSTATE CORP A UNIT OF SEARS ROEBUCK & CO PLANS TO RAISE ABOUT 2 BILLION IN ITS INITIAL PUBLIC OFFERING SEARS SAID IT WAS SELLING ABOUT 20 OF ALLSTATE IN ORDER TO CONCENTRATE ON ITS RETAILING BUSINESS 9304200019 930420 WORLD MARKETS TOKYO STOCKS SLIDE AS YEN'S SURGE PROMPTS SELLOFF OF EXPORTERS MOST EUROPEAN BOURSES POST GAINS A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS DROPPED YESTERDAY AS THE YEN'S CONTINUED SURGE PROMPTED A SELLOFF OF EXPORTERS MEANWHILE SHARE PRICES ON MOST EUROPEAN BOURSES HEADED HIGHER BUOYED BY AN INTEREST RATE CUT IN FRANCE AND VARIOUS DOMESTIC NEWS IN TOKYO PARTICIPANTS SAID THE NIKKEI'S ABILITY TO CLOSE ABOVE 20000 AFTER DROPPING BELOW THAT KEY LEVEL FOR THE FIRST TIME IN A WEEK WAS A VERY POSITIVE PERFORMANCE CONSIDERING THE LACK OF GOOD NEWS IN TOKYO ON TUESDAY THE NIKKEI INDEX ROSE 18823 POINTS TO CLOSE THE MORNING SESSION AT 2030057 CONSIDERING ALL THE BAD NEWS THIS WAS NOT A BAD DAY SAID MASANORI HOSHINA A TRADER WITH COSMO SECURITIES REFERRING TO YESTERDAY'S ACTIVITY MR HOSHINA SAID THERE WAS NO PANIC SELLING WHEN THE NIKKEI SLIPPED BELOW 20000 DURING THE MORNING WEIGHED DOWN BY THE YEN'S RISE TO A RECORD 11075 YEN AGAINST THE DOLLAR EXPORTERS WERE SOLD AS THE YEN'S GAINS CUT INTO THE VALUE OF THEIR OVERSEAS EARNINGS BUT DOMESTIC COMPANIES THAT BENEFIT FROM THE YEN'S STRENGTH INCLUDING OIL COMPANIES AND POWER COMPANIES GAINED STOCK PRICES TRENDED LOWER FROM THE OPENING AS COMMENTS FRIDAY BY US PRESIDENT BILL CLINTON FAVORING THE YEN'S APPRECIATION AS A MEANS OF CURBING JAPAN'S TRADE SURPLUS EASED FEARS IN CURRENCY MARKETS ABOUT POSSIBLE JOINT INTERVENTION BY MAJOR INDUSTRIAL NATION CENTRAL BANKS IN AN EFFORT TO CURB THE YEN'S ADVANCE BUT TRADERS SAID PUBLIC PENSION FUNDS INVESTMENT TRUSTS AND SOME INDIVIDUAL INVESTORS BEGAN BUYING BELOW 20000 STOPPING THE MARKET'S DECLINE PAUL MIGLIORATO A SENIOR SALESMAN WITH JARDINE FLEMING SECURITIES SAID INVESTORS WELCOMED THE DOWNTURN AS A CHANCE TO ADD TO THEIR POSITIONS AT LOWER LEVELS PARTICIPANTS SAID MANY INVESTORS WHO MISSED OUT ON THE MARKET'S SHARP SURGE OVER THE PAST SIX WEEKS WILL BE LOOKING TO BUY ON ANY DIPS TRADERS SAID THE MARKET MAY REMAIN QUIET FOR A FEW MORE DAYS BUT BY THE END OF THE WEEK IT SHOULD BE HEADING HIGHER AGAIN SOME PARTICIPANTS SAID THE DOLLAR'S FALL BELOW 110 YEN COULD PROMPT A FURTHER BOUT OF SELLING CURRENCY MARKET MOVEMENTS COULD CONVINCE SOME INVESTORS TO STAY ON THE SIDELINES FOR THE MOMENT LONDON STOCKS CLOSED JUST 56 POINTS FIRMER AS ENTHUSIASM FALTERED STEADILY THROUGH THE DAY AND SHARE PRICES LOST MOST OF THEIR STRONG OPENING GAINS AFTER A LATE MORNING HIGH THAT TOOK THE BENCHMARK FINANCIAL TIMESSTOCK EXHANGE 100SHARE INDEX NEARLY 20 POINTS HIGHER IT ENDED AT 2830 IN EXTREMELY LIGHT VOLUME TRADING THE FT 30STOCK INDEX GAINED 61 POINTS TO CLOSE AT 22086 THE MARKET GOT A BOOST AT THE OPENING FROM POSITIVE WEEKEND PRESS REPORTS IN THE UK ABOUT AN UPTICK IN ECONOMIC GROWTH AND AN INTEREST RATE CUT IN FRANCE EARLY YESTERDAY THE RALLY ON WALL STREET ON FRIDAY ALSO INSPIRED LONDON INVESTORS TO PUSH PRICES HIGHER BUT WHEN LITTLE ACTUAL TRADING ENSUED FROM THE OPENING BELL SUPPORT BEGAN TO WITHER THEY SAY VOLUME WAS 4618 MILLION SHARES DOWN FROM 5852 MILLION FRIDAY TRADERS ARE STILL HOPEFUL THAT THE LACKLUSTER START WON'T HOLD TRUE FOR THE REST OF THE WEEK THEY'RE BANKING THAT A SLEW OF ECONOMIC DATA AND REPORTS DUE WILL SHOW GROWTH IS FIRMLY ESTABLISHED HELPING TO SPUR A RALLY MANY PEOPLE HAVE BEEN BURNT IN THE PAST FOR JUMPING IN TOO EARLY ON EXPECTATIONS OF THE GROWTH PICKING UP SO AFTER ALL THESE FALSE STARTS THEY'RE CAUTIOUS NOW SAYS A TRADER IN FRANKFURT SHARES OPENED THE WEEK WITH A BANG AND RALLIED SHARPLY ON HOPES THE BUNDESBANK MAY LOWER INTEREST RATES LATER IN THE WEEK THE DAX 30STOCK INDEX ROSE 1445 POINTS TO CLOSE AT 169330 POINTS THE NEWS THAT THE BANK OF FRANCE CUT ITS REPURCHASE AGREEMENT RATES TO 875 FROM 91 FUELED SPECULATION THAT THE GERMAN CENTRAL BANK WILL CUT RATES LATER IN THE WEEK ALTHOUGH FEW BROKERS EXPECT THE BUNDESBANK TO TRIM ITS OFFICIAL RATES BEFORE MAY THERE IS WIDESPREAD HOPE THAT THE GERMAN CENTRAL BANK WILL PUSH MONEY MARKET RATES DOWN IN PARIS THE SECOND CUT IN KEY FRENCH INTEREST RATES IN TWO WEEKS FAILED TO RALLY THE PARIS BOURSE THE CAC 40STOCK INDEX OPENED 047 HIGHER BUT TURNED DOWN IN THE AFTERNOON TO CLOSE DOWN 089 OR 1778 POINTS AT 196891 THE CUTS HAD BEEN LONG AWAITED BUT SOME ANALYSTS SAID THEY HAD BEEN WELL ANTICIPATED BY THE MARKET IN SEOUL SOUTH KOREAN STOCKS SURGED ACROSSTHEBOARD IN WHAT ANALYSTS CALLED CONTINUED CONFIDENCE IN THE MARKET AT THE CLOSE THE KOREA COMPOSITE STOCK PRICE INDEX WAS PUSHED UP 1346 POINTS OR 19 TO 72576 IN CONTINUED BRISK TRADING OF 579 MILLION SHARES IN CORPORATE NEWS EUROTUNNEL SHED 20 PENCE TO 440 PENCE 671 A SHARE IN LONDON AFTER CONFIRMING SPECULATION THAT IT IS NO CLOSER TO A FIRM START DATE FOR BEGINNING OPERATION OF THE TUNNEL LINK BETWEEN FRANCE AND THE UK VIA THE ENGLISH CHANNEL THE ANGLOFRENCH CONSORTIUM REAFFIRMED THE TUNNEL OUGHT TO BE OPEN WITHIN A YEAR BUT SAID THE EXACT TIMING IS PREY TO ITS CONTRACTORS TRANSMANCHELINK WITH WHOM IT IS INVOLVED IN A BITTER DISPUTE OVER PAYMENT FOR COST OVERRUNS IT ALSO WARNED THAT IT MAY HAVE TO SEEK CONSIDERABLE FUNDS FROM THE EQUITY MARKETS BEFORE THE END OF 1995 ALL WE KEEP HEARING ABOUT IS COST OVERRUNS AND POSTPONEMENTS ON A START DATE THERE'S STILL NO WORD ON WHEN THIS THING IS GOING TO START MAKING SOME MONEY A TRADER GRUMBLED EUROTUNNEL SHARES LISTED ON THE PARIS BOURSE SANK AS WELL CLOSING AT 3735 FRENCH FRANCS 684 DOWN 13 FRANCS OR 34 ON HEAVY VOLUME OF FOUR MILLION SHARES RTZ GAINED 25 PENCE TO 650 AFTER THE BRITISH MINING CONCERN DECLINED TO CONFIRM OR DENY A BRITISH NEWSPAPER REPORT THAT IT IS SEEKING A BUYER FOR ITS PILLAR BUILDING AND ELECTRICAL PRODUCTS UNIT ACCORDING TO THE REPORT RTZ IS SEEKING AROUND 750 MILLION 114 BILLION FOR THE BUSINESS PROCEEDS FROM THE SALE WOULD BE USED TO DEVELOP ITS CORE MINING OPERATIONS HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX CALCULATED IN LOCAL CURRENCIES IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9304200018 930420 CHASE WRITES DOWN 2 BILLION BLOCK OF BAD REAL ESTATE PLANS BIG STOCK SALE BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CHASE MANHATTAN CORP SAID IT TOOK A SPECIAL CHARGE OF NEARLY 900 MILLION IN THE FIRST QUARTER TO WRITE DOWN 2 BILLION IN BAD REAL ESTATE BECOMING THE LATEST BANK TO TRY TO SHED ITS PROBLEMS FROM THE 1980S DESPITE THE CHARGE CHASE SAID QUARTERLY EARNINGS ROSE 85 HELPED BY SOME NONRECURRING GAINS TO HELP PAY FOR THE WRITEDOWN AND STRENGTHEN THE COMPANY'S CAPITAL BASE THE NATION'S SIXTHLARGEST BANK WILL SELL 750 MILLION IN COMMON STOCK ONE OF THE LARGESTEVER SALES OF BANK SHARES THE STOCK SALE ALSO GIVES THE COMPANY AN EQUITY CUSHION FOR ACQUISITIONS SAID THOMAS G LABRECQUE CHAIRMAN AND CHIEF EXECUTIVE OFFICER STANDARD & POOR'S CORP SAID IT WOULD UPGRADE THE COMPANY'S DEBT RATING ASSUMING THE EQUITY IS SOLD BUT SHARES OF CHASE TUMBLED 2375 TO 3450 IN HEAVY TRADING ON THE BIG BOARD WALL STREET IS DISAPPOINTED ABOUT THE DILUTIVE EFFECTS OF SUCH A LARGE STOCK OFFERING AND THE CONTINUED LARGE PROVISIONS FOR FUTURE LOAN LOSSES DESPITE A TOTAL OF 124 BILLION IN RESERVES IN THE QUARTER THE COMPANY SAID IT WOULD STILL NEED TO ADD RESERVES AT THE RATE OF 250 MILLION A QUARTER FOR THE REST OF THE YEAR GIVEN THE BIG ADDITION IN THE FIRST QUARTER WALL STREET WAS DISAPPOINTED THAT FUTURE RESERVES WOULD NOT BE TAKING A SHARPER DROP FROM THE 300 MILLION TO 350 MILLION QUARTERLY RESERVE RATE THAT HAS BECOME THE NORM IN RECENT YEARS THE SPECIAL CHARGE FOR LOAN LOSSES DID NOT CRUSH EARNINGS BECAUSE OF AN OFFSETTING RECOGNITION OF 500 MILLION IN TAX BENEFITS AS EQUITY UNDER NEW ACCOUNTING RULES IMPLEMENTED IN THE FIRST QUARTER IN ADDITION THE COMPANY RECEIVED 142 MILLION IN REVENUE FROM THE SALE OF BONDS PAID BY BRAZIL IN LIEU OF INTEREST AS A RESULT CHASE SAID FIRSTQUARTER EARNINGS ROSE 85 TO 153 MILLION OR 74 CENTS A SHARE AFTER TAKING INTO ACCOUNT THE LARGERTHANNORMAL RESERVES AND A SERIES OF OTHER NONRECURRING ITEMS THAT COMPARES WITH 141 MILLION OR 81 CENTS A SHARE A YEAR EARLIER EXCLUDING SPECIAL CHARGES THE COMPANY'S OPERATING EARNINGS ROSE 61 TO 179 MILLION OR ABOUT 95 CENTS A SHARE EARNINGS WERE FUELED BY IMPROVED SECURITIES AND CURRENCY TRADING AND CONTINUED WIDE NET INTEREST MARGINS BETWEEN BORROWING AND LENDING RATES CHASE'S MOVE TO DISPOSE OF A CHUNK OF ITS PROBLEM REAL ESTATE FOLLOWS SIMILAR STEPS BY FIRST CHICAGO CORP AND BANKAMERICA CORP WHICH BOTH WROTE DOWN AND SOLD ABOUT 1 BILLION IN TROUBLED PROPERTY LOANS AND FORECLOSED ASSETS CHASE HAD ESCHEWED THAT STRATEGY BUT IT SIGNALED A CHANGE LAST MONTH WHEN IT BEGAN PEDDLING 300 MILLION IN BAD DEBTS LIQUIDITY IS COMING BACK TO THE REAL ESTATE MARKETS SAID MR LABRECQUE THE OPPORTUNITY IS A FUNCTION OF THE EXTERNAL ENVIRONMENT THE 2 BILLION POOL OF PROPERTY CONSISTING OF A MIX OF NONPERFORMING LOANS FORECLOSED PROPERTY AND LOWERQUALITY CURRENT LOANS WAS WRITTEN DOWN TO 1 BILLION AND WILL BE SOLD WITHIN THE NEXT 24 TO 30 MONTHS MR LABRECQUE SAID THE COMPANY WOULD SELL PARCELS OF PROPERTIES TOGETHER AND HOPES TO SELL 40 OF THE PORTFOLIO THIS YEAR THE COMPANY IS CARRYING THE ASSETS AT 39 OF THE ORIGINAL CONTRACTUAL AMOUNT BELOW THE 50 AVERAGE LARGE BULK SALES HAVE FETCHED RECENTLY AT 39 CENTS ON THE DOLLAR THEY SHOULD GET A LOT OF INTEREST SAID CRAIG HATKOFF MANAGING PARTNER AT VICTOR CAPITAL GROUP A REAL ESTATE INVESTMENT BANK THE COMPANY IS ALREADY CONSIDERED A WELLCAPITALIZED BANK FOR REGULATORY PURPOSES BUT CHASE IS RAISING THE ADDITIONAL EQUITY TO BE PREPARED FOR INTERNAL GROWTH AS WELL AS ACQUISITION OPPORTUNITIES ESPECIALLY IN CONSUMER OR MORTGAGE BANKING BUSINESSES CHASE HOPES TO TAP THE STILLBOOMING MARKET FOR BANK EQUITIES WE MADE A DECISION TO ACCELERATE THE GROWTH OF THE COMPANY SAID MR LABRECQUE I'M PLEASANTLY SURPRISED SAID CAROLE BERGER BANKING ANALYST AT CJ LAWRENCE INC SHE SAID THE COMPANY'S STRENGTHENED CAPITAL POSITION AND BIGGER CUSHION FOR PROBLEM LOANS WILL GIVE IT THE WHEREWITHTAL TO BUILD FOR THE FUTURE THEY'RE READY TO GO INTO A PROACTIVE MODE SHE SAID S&P SAID THE COMPANY'S DEBT WOULD BE UPGRADED TO SINGLEA FROM TRIPLEB UNLESS THE EQUITY COULD NOT BE RAISED ABOUT 67 BILLION IN DEBT IS AFFECTED THAT SHOULD HELP THE COMPANY'S GROWING DERIVATIVES AREA WHICH HAD RECORD RESULTS THIS QUARTER 9304200017 930420 ORIOLES OWNER JACOBS FILES FOR PERSONAL BANKRUPTCY NEW YORK NEW YORK FINANCIER AND BALTIMORE ORIOLES OWNER ELI S JACOBS VOLUNTARILY FILED FOR PERSONAL BANKRUPTCY REORGANIZATION YESTERDAY HIS HAND FORCED BY A GROUP OF BANKS THAT CLAIMS HE OWES THEM 60 MILLION MR JACOBS WHOSE FORTUNES HAVE TUMBLED SINCE THE LATE 1980S ALSO FILED VOLUNTARY CHAPTER 11 PETITIONS IN US BANKRUPTCY COURT IN NEW YORK FOR TWO ENTITIES HE USED TO RUN HIS OPERATIONS 375 PARK AVENUE ASSOCIATES INC AND PARK PARTNERS LP SAID STEPHEN SHIMSHAK ONE OF HIS ATTORNEYS MR JACOBS'S PERSONAL BANKRUPTCY FILING HOWEVER ISN'T EXPECTED TO INTERFERE WITH HIS CONTINUED NEGOTIATIONS TO SELL THE ORIOLES TO WILLIAM DEWITT JR A CINCINNATI BUSINESSMAN SAID MR SHIMSHAK MR JACOBS ALSO REACHED A TENTATIVE AGREEMENT LATE LAST WEEK TO RESTRUCTURE THE DEBT HE OWES THE BANKING GROUP HIS ATTORNEY SAID MR JACOBS OWES ABOUT 2734 MILLION TO HIS 20 LARGEST CREDITORS MOST OF THE CLAIMS ARE UNSECURED ALTHOUGH SOME ARE PARTIALLY SECURED ACCORDING TO THE BANKRUPTCY FILING 9304200016 930420 GREENSPAN SAYS FED NEEDS TO STAY ALERT ON INFLATION BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN TAKING PARTIAL CREDIT FOR THE RECENT DECLINE IN THE INFLATION RATE SAID THE FED MUST BE ESPECIALLY VIGILANT NOT TO BE MESMERIZED BY THE CURRENT TRANQUILITY OF THE INFLATIONARY ENVIRONMENT ALTHOUGH HE SPECIFICALLY SAID HE WASN'T TRYING TO HINT AT WHAT THE FED WILL DO IN THE COMING WEEKS AND YEARS AHEAD MR GREENSPAN CLEARLY SOUGHT TO SIGNAL THAT THE FED IS PREPARED TO RAISE INTEREST RATES IF NECESSARY A SOCIETY'S CENTRAL BANK IS RARELY POPULAR HE SAID IN REMARKS PREPARED FOR DELIVERY TO THE ECONOMIC CLUB OF NEW YORK LAST NIGHT A COPY WAS RELEASED BY THE FED HAD THE FED MOVED MORE QUICKLY TO CUT INTEREST RATES DURING THE RECESSION AS SOME PROMINENT CRITICS HAVE SUGGESTED THE INFLATION RATE VERY LIKELY WOULDN'T HAVE DECLINED AS MUCH AS IT HAS AND SUCH A POLICY COULD HAVE LED TO HIGHER INFLATION IN THE NEXT FEW YEARS MR GREENSPAN SAID THE LABOR DEPARTMENT REPORTED RECENTLY THAT CONSUMER PRICES ROSE ONLY 01 IN MARCH AFTER TWO MONTHS OF LARGERTHANEXPECTED INCREASES MR GREENSPAN DISMISSED THE SIGNIFICANCE OF A LABOR DEPARTMENT REPORT THAT AVERAGE HOURLY EARNINGS INCREASED A SHARP 05 IN MARCH SUGGESTING THAT MAY REFLECT NOTHING MORE THAN EXCESS OVERTIME COSTS OF CLEANUP FOLLOWING THE LATE WINTER STORMS MR GREENSPAN MADE CLEAR THAT IN HIS VIEW THE INFLATION RATE IS UNLIKELY TO TURN UP THE INFLATIONARY PRESSURES THAT SO DOMINATED THE ECONOMIC EVENTS OF MOST OF THE LAST QUARTER CENTURY APPEAR LARGELY THOUGH NOT AS YET WHOLLY SUBDUED HE SAID THE POSTVIETNAM ECONOMIC EXPERIENCE APPEARS TO BE RUNNING FULL CIRCLE BACK TO THE EARLY 1960S A PERIOD OF LOW INFLATION AND STRONG PRODUCTIVITY GROWTH AMONG THE REASONS FOR THIS OPTIMISM HE LISTED THE PRONOUNCED INTEREST AND POLITICAL SUPPORT THROUGHOUT OUR NATION FOR REINING IN OUTSIZED BUDGET DEFICITS BUT HE ADDED THAT IT WOULD BE IRRESPONSIBLE FOR US TO DISMISS THE EXPERIENCE OF THE POSTVIETNAM WAR YEARS AND ONCE AGAIN ALLOW THE DESTABILIZING FORCES OF INFLATION TO UNDERCUT ECONOMIC GROWTH AND EMPLOYMENT 9304200015 930420 WSMP CHAIRMAN HASH RESIGNS CLAREMONT NC WSMP INC SAID CECIL R HASH CHAIRMAN AND CHIEF EXECUTIVE OFFICER RESIGNED AND THE BOARD PICKED TWO COMPANY OFFICERS TO SUCCEED HIM THE RESTAURANT AND FOODSERVICE COMPANY SAID MR HASH MADE A PERSONAL DECISION TO RETURN TO THE DAILY MANAGEMENT OF THE 25 RESTAURANTS HE PRESENTLY FRANCHISES FROM WSMP MR HASH 53 YEARS OLD IS WSMP'S LARGEST FRANCHISEE THE COMPANY SAID HE COULDN'T BE REACHED TO COMMENT WSMP'S PRESIDENT JAMES C RICHARDSON JR 44 WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER AND RICHARD F HOWARD 43 EXECUTIVE VICE PRESIDENT WAS PROMOTED TO CHAIRMAN 9304200014 930420 BUSINESS BRIEF MCGRAWHILL INC PUBLISHER POSTS 1992 PROFIT AGAINST YEAREARLIER LOSS MCGRAWHILL INC WHICH HAD A YEAREARLIER LOSS THAT INCLUDED A MAJOR CHARGE FOR ACCOUNTING CHANGES POSTED PROFIT AND SAID ITS FINANCIAL SERVICES BUSINESS BENEFITED STRONGLY FROM THE NEWSECURITIES ISSUES MARKET THE NEW YORK PUBLISHING AND INFORMATION SERVICES COMPANY REPORTED FIRSTQUARTER NET INCOME OF 153 MILLION OR 31 CENTS A SHARE A YEAR EARLIER AFTER A 1246 MILLION CHARGE OR 255 A SHARE FOR ACCOUNTING CHANGES THE COMPANY HAD A NET LOSS OF 1122 MILLION OR 230 A SHARE REVENUE ROSE 27 TO 4669 MILLION FROM 4548 MILLION MCGRAWHILL SAID ITS FINANCIAL SERVICES UNIT WHICH INCLUDES THE STANDARD & POOR'S DEBT RATINGS GROUP HAD A 13 GAIN IN REVENUE AND A 22 INCREASE IN OPERATING PROFITS THE JJ KENNY BOND INFORMATION EVALUATION AND BROKERAGE SERVICE ALSO BENEFITED FROM INCREASED INVESTOR INTEREST REVENUE FELL 5 IN THE INFORMATION AND PUBLICATION SERVICES UNIT DUE TO SOFTNESS IN ADVERTISING WHILE OPERATING PROFIT FELL 12 ALTHOUGH BUSINESS WEEK MAGAZINE SHOWED IMPROVED RESULTS MANY OF OUR OTHER PUBLICATIONS COULDN'T ESCAPE THE EFFECT OF A SLUGGISH ADVERTISING ENVIRONMENT MCGRAWHILL SAID 9304200013 930420 PENNEY TO BEGIN ACCEPTING DISCOVER CARD NEXT WEEK NEW YORK DEAN WITTER DISCOVER & CO SAID JC PENNEY INC WILL BEGIN ACCEPTING THE DISCOVER CARD AT ITS RETAIL AND CATALOG OUTLETS BEGINNING NEXT WEEK DEAN WITTER DISCOVER WENT PUBLIC THROUGH A RECENT INITIAL OFFERING BUT REMAINS MAJORITYOWNED BY SEARS ROEBUCK & CO CHICAGO THE PARENT OF THE DEAN WITTER BROKERAGE FIRM IT ALSO OPERATES THE DISCOVER CREDIT CARD BUSINESS PENNEY BASED IN DALLAS CALLED ITS DECISION TO ACCEPT THE CARD IN LINE WITH ITS POLICY OF PROVIDING ADDITIONAL SHOPPING CONVENIENCES WHENEVER POSSIBLE AND ADDED THAT IT ANTICIPATES ATTRACTING CUSTOMERS WHO USE THE DISCOVER CARD BUT DON'T PRESENTLY BUY AT PENNEY AN OFFICIAL WITH DEAN WITTER DISCOVER'S DISCOVER CARD SERVICES INC UNIT CALLED PENNEY'S MOVE A GREAT MILESTONE FOR US DISCOVER HAS ABOUT 40 MILLION CARD MEMBERS AND THE CARD IS ACCEPTED AT 17 MILLION MERCHANT OUTLETS IN THE US 9304200012 930420 HOW TO SAVE A TRADE AGREEMENT BY MARSHALL J BREGER WHEN IT COMES TO THE NORTH AMERICAN FREE TRADE AGREEMENT THERE ARE TWO MICKEY KANTORS THE FIRST IS THE NICE MICKEY KANTOR WHO AS PRESIDENT CLINTON'S TRADE REPRESENTATIVE PROMISES CONGRESS THAT THE ADMINISTRATION WILL NOT DEMAND TRADE SANCTIONS IN THE ENVIRONMENTAL AND LABOR NEGOTIATIONS WITH MEXICO THAT ARE GOING ON RIGHT NOW THE SECOND IS THE TOUGH MICKEY KANTOR WHO DEMANDS THAT HIS TROOPS PUT TEETH INTO ANY AGREEMENTS RESULTING FROM THESE NEGOTIATIONS THE FATE OF NAFTA WILL DEPEND ON WHERE THE REAL MICKEY KANTOR STANDS ON FREE TRADE TAKE LABOR ISSUES SOCALLED LABOR RIGHTS ADVOCATES ARE CALLING FOR THE USE OF TRADE SANCTIONS FOR LABOR VIOLATIONS IN MEXICO THIS WOULD ALLOW NAFTA TRIBUNALS TO PENALIZE COMPANIES FOR VIOLATIONS OF CROSSBORDER WAGE AND LABOR LAWS IT MIGHT EVEN REQUIRE AMERICAN COURTS TO DECIDE WHETHER MEXICO AND CANADA ARE FOLLOWING THEIR OWN LABOR LAWS MR KANTOR REJECTED SUCH PLEAS IN RECENT CONGRESSIONAL HEARINGS AND WITH GOOD REASON UNLIKE DOMESTIC CONTENT RULES LABOR STANDARDS CANNOT BE MATHEMATICALLY DEFINED OR EASILY ENFORCED LAST YEAR ALONE THE LABOR DEPARTMENT FOUND HUNDREDS OF AMERICAN COMPANIES IN VIOLATION OF SUCH STATUTES AS THE FAIR LABOR STANDARDS ACT THE OCCUPATIONAL SAFETY AND HEALTH ACT AND THE EMPLOYEE RETIREMENT INCOME SECURITY ACT REMEMBER A NORTH AMERICAN LABOR TRIBUNAL CAN SWING ITS AX BOTH WAYS IT WOULD BE ONLY A MATTER OF TIME BEFORE MEXICAN COURTS BEGAN PENALIZING IMPORTS FROM US COMPANIES WHETHER THEIR CRIMES WERE MERELY RECORDKEEPING VIOLATIONS OR SOMETHING MORE SERIOUS THE QUESTION OF WHETHER A PARTICULAR VIOLATION ROSE TO A LEVEL WORTHY OF TRADE SANCTIONS WOULD ITSELF KEEP LITIGATORS IN CLOVER ON BOTH SIDES OF THE BORDER ANTINAFTA FORCES ARE NOW PUSHING A RELATED IDEA THAT MEXICO GIVE MEXICAN CITIZENS LABOR GROUPS AND INDUSTRY AN AMERICANSTYLE LEGAL SYSTEM INCLUDING A MORE OPEN SYSTEM OF ADMINISTRATIVE RULEMAKING AND INCREASED USE OF JUDICIAL REVIEW IN HEARINGS LAST MONTH THE TOUGH MICKEY KANTOR SEEMED TO AGREE HERE HE BETRAYS HIS ROOTS FOR ONLY A LAWYERLOBBYIST COULD FEEL RIGHTEOUS ABOUT EXPORTING TODAY'S AMERICAN LEGAL SYSTEM ABROAD EVEN IF MEXICAN LAW ALLOWS TOO LITTLE PUBLIC PARTICIPATION IN ITS ADMINISTRATIVE PROCESS OR TOO LITTLE JUDICIAL REVIEW IMPOSING OUR SYSTEM ON MEXICO ONE FRAUGHT WITH PROCEDURALISM AND LITIGIOUSNESS WILL BENEFIT K STREET LAW FIRMS WITH THE RESOURCES TO OPEN MEXICO CITY BRANCHES FAR MORE THAN AMERICAN OR MEXICAN WORKERS IF MR KANTOR REALLY WANTS A SUCCESSFUL NAFTA ACCORD HE SHOULD TAKE THE FOLLOWING PRACTICAL STEPS ENSURE THAT A TRINATIONAL COMMISSION DOES NOT BECOME AN INTERNATIONAL ENFORCEMENT BUREAUCRACY THE CLINTON ADMINISTRATION HAS URGED CREATION OF A TRINATIONAL COMMISSION ON LABOR STANDARDS WITH INDEPENDENT EXPERT STAFFS AND THE AUTHORITY TO REVIEW COMPLAINTS FROM CITIZENS AND NONGOVERNMENTAL ORGANIZATIONS ALREADY SOME COMMISSION ADVOCATES ENVISION A SECRETARIAT THAT WOULD ACT INDEPENDENT OF THE LABOR MINISTERS OF THE THREE COUNTRIES SUCH A BUREAUCRACY WOULD UNDERCUT NATIONAL SOVEREIGNTY IMPOSING LABORLAW JUSTICE AS IT SAW FIT AT BEST THE MANDATE OF ANY SUCH COMMISSION SHOULD BE LIMITED IT SHOULD OFFER TECHNICAL ASSISTANCE IN WORKERSAFETY ISSUES AND PROVIDE A CLEARINGHOUSE FOR WAYS TO IMPROVE PRODUCTIVITY AND LABORMANAGEMENT COOPERATION AT MOST IT SHOULD FACILITATE AN APPEAL TO THE COURT OF PUBLIC OPINION NOT A COURT OF LAW PROVIDE ASSISTANCE IN TRAINING MEXICAN HEALTH AND WORKERSAFETY INSPECTORS THE AFLCIO'S CALL FOR CROSSBORDER LABOR ENFORCEMENT IS BASED ON A BELIEF IN THE EXISTENCE OF LARGESCALE LABOR ABUSES IN MEXICO THE FACT IS THAT MEXICAN LABOR STANDARDS ARE LITTLE DIFFERENT AND IN SOME CASES EVEN MORE PROWORKER THAN OUR OWN AS IN WORKER SAFETY AND HEALTH WHAT THE MEXICANS REFER TO AS HYGIENE INDEED AFTER A RECENT 11TH CIRCUIT COURT DECISION THAT VACATED THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION'S MOST RECENT AND HIGHER EXPOSURE LIMITS FOR AIR CONTAMINANTS MEXICAN HYGIENE STANDARDS MAY IN SOME INSTANCES BE TOUGHER THAN THOSE IN THE US STILL THE ANTINAFTA CROWD CLAIMS THAT WHILE MEXICO MAY ENDORSE HIGH STANDARDS IT FAILS TO ENFORCE THEM AS A DEVELOPING COUNTRY MEXICO MAY NOT BE COMPLETELY UP TO SPEED ON SAFETY REQUIREMENTS OF NEW PRODUCTION PROCESSES THE SAME IS TRUE WITH ISSUES RELATED TO THE HANDLING OF TOXIC CHEMICALS STILL MEXICO HAS 800 LABOR INSPECTORS FOR 600000 COVERED WORKPLACES ONE FOR EVERY 750 BY COMPARISON THE US HAS 2467 FEDERAL AND STATE OSHA INSPECTORS FOR 65 MILLION WORKPLACES ONE FOR EVERY 2635 AND MEXICO UNLIKE THE US MANDATES LABORMANAGEMENT WORKPLACE COMMITTEES TO WHICH WORKERS CAN MAKE HEALTH AND SAFETY COMPLAINTS MEXICO DOES NEED OUR TECHNICAL ASSISTANCE IN APPLYING AND ENFORCING ITS LABOR STANDARDS BUT THERE IS NO REASON TO REINVENT THE WHEEL THE ENVIRONMENTAL PROTECTION AGENCY IS ALREADY INVOLVED IN CROSSBORDER PROJECTS WITH MEXICAN AGENCIES SUCH PROJECTS OFFER A MODEL FOR SOLVING DISCRETE LABOR RELATIONS PROBLEMS FOR EXAMPLE THE US GOVERNMENT COULD PROVIDE SUPPORT FOR AN INSPECTORS' TRAINING FACILITY IN MEXICO SIMILAR TO OUR OSHA UNIVERSITY IN DES PLAINES ILL LAST YEAR MEXICAN TECHNICIANS RECEIVED TRAINING IN OSHA'S INDUSTRIAL HYGIENE TESTING LABORATORY IN SALT LAKE CITY THIS KIND OF TECHNICAL ASSISTANCE DOES NOT MAKE HEADLINES BUT IT MAKES A REAL CONTRIBUTION TO WORKER SAFETY REJECT THE DEMAND FOR UNIFORM CONTINENTAL STANDARDS IN THE TRENCH WARFARE AGAINST NAFTA THE AFLCIO HAS REFERRED TO THE NEED FOR A SOCIAL CHARTER SIMILAR TO THOSE BEING CONTEMPLATED BY THE EUROPEAN COMMUNITY THIS IDEA THAT NAFTA SHOULD PROMOTE UNIFORM CONTINENTAL LABOR STANDARDS BETWEEN CANADA MEXICO AND THE US IS FANCIFUL AT BEST AS A DEVELOPING COUNTRY MEXICO CANNOT AND SHOULD NOT REPLICATE EVERY JOT AND TITTLE OF OUR EMPLOYMENT AND LABOR LAW THE VERY NOTION SUGGESTS THAT THE IDEA IS PUT FORWARD LESS IN GOOD FAITH THAN AS A PLOY TO SCUTTLE NAFTA IT IS UNREASONABLE TO EXPECT PARITY OR EVEN HARMONY AMONG MEXICO THE US AND CANADA IN FOR EXAMPLE WAGE AND HOUR LAWS MEXICO TRACKS THE US NOT ONLY IN SAFETY AND HYGIENE BUT IN OVERTIME LAWS THEY HAVE A 48HOUR WEEK BUT REQUIRE DOUBLETIME NOT TIMEANDAHALF FOR OVERTIME BUT THERE'S NO REASON BEYOND POLITICS TO EXPECT MEXICAN LAW TO PARALLEL OUR OWN DOWN THE LINE THERE IS THE BIGGER ISSUE HERE OF CULTURAL IMPERIALISM WHILE MANY MEXICAN LABOR STANDARDS ARE DIFFERENT FROM OURS WE CANNOT ASSUME THEY ARE APPRECIABLY WORSE WORKER SAFETY IS ONE EXAMPLE THE MEXICANS WHEN THEY ENFORCE WORKER SAFETY DO SO LARGELY THROUGH PERFORMANCE STANDARDS TELLING INDUSTRY WHAT THE MAXIMUM RISK LEVELS ARE AND LETTING INDUSTRY FIND THE BEST WAY TO COMPLY IN CONTRAST OSHA TOO OFTEN GETS CAUGHT UP IN TELLING BUSINESS IN EXCRUCIATING DETAIL EXACTLY HOW TO REACH A MANDATED GOAL WITH SOCALLED COMMANDANDCONTROL REGULATIONS EVEN LIBERAL ECONOMISTS AGREE THAT PERFORMANCE STANDARDS ARE OFTEN SUPERIOR TO COMMANDANDCONTROL MANDATES WILL THE CONTINENTALSTANDARDS CROWD COMMAND MEXICO TO ADOPT AMERICAN METHODS THAT ARE BEING CRITICIZED HERE AT HOME IF NAFTA IS TO BE IMPLEMENTED BY 1994 AS MR CLINTON HAS PROMISED THE SUPPLEMENTAL AGREEMENTS MUST BE FINISHED BY EARLY JUNE SO THAT THE FAST TRACK DEBATE IN CONGRESS MAY BEGIN GIVEN THAT SHORT TIME FRAME NAFTA WILL ONLY SUCCEED IF A PRACTICAL MICKEY KANTOR EMERGES REPORTS FROM LAST WEEK'S SESSION IN MEXICO CITY SUGGEST THAT MR KANTOR IS RESISTING EFFORTS TO VEST THE TRINATIONAL COMMISSION WITH SIGNIFICANT ENFORCEMENT POWERS THAT IS ALL TO THE GOOD THE DEVIL HOWEVER IS IN THE DETAILS THE CLINTON ADMINISTRATION MUST NOT LOAD UP THE SUPPLEMENTAL AGREEMENT WITH SO MANY CONDITIONS THAT THE CANADIANS WILL BALK AND THE FREETRADERS IN CONGRESS LOSE HEART IT'S NOW TIME FOR THE REAL MICKEY KANTOR TO SHOW HIS HAND MR BREGER IS A SENIOR FELLOW AT THE HERITAGE FOUNDATION WESLEY R SMITH CODIRECTOR OF THE MEXICO PROJECT AT HERITAGE ASSISTED WITH THIS ARTICLE 9304200011 930420 BUSINESS BRIEF USF&G CORP PROFIT BEFORE ITEMS IS PUT AT 22 MILLION FOR 1ST PERIOD USF&G CORP SAID IT EXPECTS TO REPORT FIRSTQUARTER EARNINGS OF 22 MILLION OR 12 CENTS A SHARE BEFORE THE EFFECT OF NET REALIZED GAINS AND LOSSES AND THREE ACCOUNTING CHANGES ANALYSTS' CURRENT EARNINGS EXPECTATIONS ARE FIVE CENTS A SHARE BEFORE ITEMS USF&G THE BALTIMORE PROPERTY/CASUALTY AND LIFE INSURANCE COMPANY SAID IN THE 1992 FIRST QUARTER IT HAD NET INCOME OF 4 MILLION OR A LOSS OF NINE CENTS A SHARE AFTER PAYMENT OF PREFERRED DIVIDENDS USF&G SAID THE EFFECT OF ADOPTING NEW ACCOUNTING RULES RELATED TO EMPLOYEE BENEFITS INCOME TAXES AND REINSURANCE CONTRACTS WILL BE A 38 MILLION NET BENEFIT TO FIRSTQUARTER EARNINGS THIS BENEFIT TOGETHER WITH REALIZED GAINS IS EXPECTED TO RESULT IN TOTAL CONSOLIDATED NET INCOME OF ABOUT 61 MILLION OR 58 CENTS A SHARE AFTER PREFERRED DIVIDENDS USF&G WITH ASSETS OF 14 BILLION SAID IT EXPECTS TO REPORT RESULTS FOR THE QUARTER ON OR BEFORE APRIL 28 ITS MAIN SUBSIDIARY IS US FIDELITY & GUARANTY CO 9304200010 930420 MARKETING & MEDIA TIME WARNER REPORTS LOSS NARROWED IN 1ST QUARTER NEW YORK TIME WARNER INC'S FIRSTQUARTER LOSS NARROWED TO 124 MILLION FROM 150 MILLION ON AN 87 RISE IN REVENUE TO 33 BILLION BUT WITH HEALTHY CASHFLOW GAINS IN ITS FIVE BUSINESSES THE ENTERTAINMENT COMPANY POSTED A 12 INCREASE IN OPERATING PROFIT TO 323 MILLION FROM THE YEAREARLIER 290 MILLION FOR THE PERIOD THE PERSHARE NET LOSS TOTALED 33 CENTS COMPARED WITH THE YEAREARLIER LOSS OF 40 CENTS BEFORE THE PAYMENT OF 109 MILLION IN PREFERRED STOCK DIVIDENDS THE LATEST QUARTERLY LOSS TOTALED 15 MILLION COMPARED WITH THE YEARAGO PROFIT OF 3 MILLION BEFORE PAYMENT OF 153 MILLION IN PREFERRED DIVIDENDS THE RESULTS REFLECT THE REDEMPTION OF THE COMPANY'S SERIES D PREFERRED SHARES DURING THE QUARTER BOTH THE LATEST QUARTER AND THE YEARAGO PERIOD INCLUDE NONCASH AMORTIZATION CHARGES OF ABOUT 125 MILLION RELATED TO THE 1989 ACQUISITION OF WARNER COMMUNICATIONS INC BY TIME INC IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE TIME WARNER CLOSED UNCHANGED AT 3450 9304200008 930420 BUSINESS BRIEF UST INC FIRSTQUARTER NET ROSE 20 ON TOBACCO AND WINE SALES UST INC GREENWICH CONN REPORTED A 20 INCREASE IN FIRSTQUARTER EARNINGS LARGELY FROM IMPROVED SALES AT ITS TOBACCO AND WINE SEGMENTS UST POSTED NET INCOME OF 837 MILLION OR 38 CENTS A SHARE COMPARED WITH 699 MILLION OR 31 CENTS A SHARE IN THE YEARAGO QUARTER REVENUE INCREASED 13 TO 2662 MILLION LATEST FIRSTQUARTER EARNINGS REFLECT A GAIN OF 22 MILLION OR 10 CENTS A SHARE FROM THE COMPANY'S SALE OF ITS DISTRIBUTION RIGHTS FOR ZIGZAG CIGARETTE PAPERS AND RELATED PRODUCTS THAT WAS LARGELY OFFSET BY A CHARGE OF 199 MILLION OR NINE CENTS A SHARE FOR CHANGES IN ACCOUNTING FOR POST RETIREMENT BENEFITS AND INCOME TAXES UST SELLS MOIST SMOKELESS TOBACCO UNDER THE COPENHAGEN AND SKOAL BRAND NAMES AND WINE UNDER THE COLUMBIA CREST LABEL 9304200007 930420 AT&T GETS CONTRACT NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO SAID IT SIGNED A 22 MILLION CONTRACT TO PROVIDE THE UNITED ARAB EMIRATES WITH AN ADVANCED WIRELESS COMMUNICATIONS NETWORK AT&T SAID THE SYSTEM PROVIDES CELLULAR COMMUNICATIONS TECHNOLOGY FOR WORLDWIDE MOBILE AND PERSONAL COMMUNICATIONS THE SYSTEM TO BE IN OPERATION IN MID1994 INITIALLY WILL SERVE 27000 SUBSCRIBERS 9304200006 930420 BUSINESS BRIEF AES CORP QUARTERLY PROFIT SURGED 76 ADDITIONAL PLANTS ARE CITED AES CORP A SUPPLIER OF ELECTRICITY TO UTILITIES REPORTED A 76 GAIN IN NET INCOME FOR THE FIRST QUARTER AS IT BROUGHT TWO MORE PLANTS ON LINE NET INCOME WAS 211 MILLION OR 46 CENTS A SHARE COMPARED WITH 12 MILLION OR 27 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE INCREASED 46 TO 1295 MILLION THE ARLINGTON VA COMPANY SAID CONTRACT RATE INCREASES AND THE TWO NEW PLANTS WHICH WEREN'T IN OPERATION DURING LAST YEAR'S FIRST QUARTER CONTRIBUTED TO THE EARNINGS INCREASE AES WHICH BUILDS AND OPERATES ELECTRICITYGENERATING FACILITIES ALSO PROVIDES STEAM TO INDUSTRIAL COMPANIES 9304200005 930420 MICROSOFT DISCUSSES SOFTWARE STANDARDS WITH PHONE FIRMS REDMOND WASH MICROSOFT CORP WHICH HAS OPENLY COVETED A ROLE IN TELECOMMUNICATIONS FOR SOME YEARS SAID IT IS TALKING WITH SEVERAL TELEPHONE COMPANIES ABOUT CREATING A POSSIBLE SOFTWARE STANDARD TO ENABLE PERSONAL COMPUTERS AND TELEPHONE PRIVATEBRANCHEXCHANGES TO WORK CLOSELY TOGETHER INFOWORLD A TRADE WEEKLY REPORTED IN YESTERDAY'S EDITION THAT THE SOFTWARE GIANT IS TEAMING WITH INTEL CORP THE BIG SANTA CLARA CALIF CHIP CONCERN TO OFFER A JOINT PACKAGE TO TELEPHONESWITCH SUPPLIERS SUCH AS NORTHERN TELECOM INC INTEL WOULD NOT COMMENT ON THE REPORT BUT A SPOKESMAN FOR MICROSOFT SAID THE STORY IS NOT THAT FAR OFF THE MARK A CONSULTANT WHO SAID HE HAS ADVISED MICROSOFT ON THE SUBJECT SAID MICROSOFT AND INTEL WILL ANNOUNCE THE EFFORT SOON JAMES BURTON A BOSTON SPECIALIST IN MESHING PCS AND TELEPHONES SAID INTEL AND MICROSOFT DECIDED TO APPROACH THE MARKET JOINTLY RATHER THAN TAKE DIFFERENT APPROACHES INTEL AND MICROSOFT WHICH HAVE TEAMED TOGETHER IN THE PAST TO SPEARHEAD NUMEROUS ADVANCES IN PERSONAL COMPUTING ARE INTENSELY EXPLORING WAYS TO TAKE ADVANTAGE OF THE GROWING CONVERGENCE BETWEEN FOUR BIG INDUSTRIES COMPUTING COMMUNICATIONS ENTERTAINMENT AND CONSUMER ELECTRONICS WILLIAM GATES MICROSOFT'S CHAIRMAN HAS REPEATEDLY PROFESSED HIS INTEREST IN PUTTING HIS COMPANY'S SOFTWARE INTO TELEPHONES FOR INSTANCE MR BURTON SAID THE INTEGRATION OF TELEPHONE EXCHANGES AND PCS WOULD HELP CUSTOMERS BY MAKING IT EASIER TO SORT AND SAVE VOICE MAIL AUTOMATICALLY DIAL NUMBERS AND SHARE COMPUTERIZED INFORMATION OVER PHONE LINES I THINK ALL THE MAJOR SWITCH MANUFACTURERS WILL ADOPT THIS STANDARD HE SAID 9304200004 930420 FOREIGN EXCHANGE YEN SURGES TO RECORD AGAINST DOLLAR AS CLINTON REMARK SEEN FAVORING RISE BY RICHARD SCHUMACHER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE YEN SURGED AGAINST THE DOLLAR TO TOUCH THE LATEST IN A STRING OF POSTWORLD WAR II RECORDS AS FOREIGNEXCHANGE MARKETS INTERPRETED REMARKS BY PRESIDENT BILL CLINTON AS AN ENDORSEMENT OF THE JAPANESE CURRENCY'S APPRECIATION THE DOLLAR ALSO FELL AGAINST OTHER MAJOR CURRENCIES LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 11113 YEN DOWN FROM 11230 YEN LATE FRIDAY IN NEW YORK THE CURRENCY ALSO WAS CHANGING HANDS AT 15978 MARKS DOWN FROM 16175 MARKS STERLING WAS TRADING AT 15425 UP FROM 15245 IN TOKYO EARLY TUESDAY THE DOLLAR WAS TRADING AT 11135 YEN AND 15995 MARKS THE YEN'S ROCKETLIKE ADVANCE WAS REALLY ON THE HEELS OF CLINTON'S COMMENTS FRIDAY SAID JACK GRIFFIN AN ASSISTANT VICE PRESIDENT OF CORPORATE FOREIGN EXCHANGE AT FUJI BANK LTD MR CLINTON SAID THE APPRECIATION OF THE YEN WAS ONE OF THREE OR FOUR THINGS WORKING TODAY WHICH MIGHT GIVE US MORE RESULTS IN TRYING TO BOOST US EXPORTS TO JAPAN THE PRESIDENT MADE HIS REMARKS AT A WHITE HOUSE NEWS CONFERENCE WITH JAPANESE PRIME MINISTER KIICHI MIYAZAWA TRADERS SAID MR CLINTON'S COMMENTS SUGGEST US INTERVENTION TO STOP THE YEN'S RECENT SURGE IS UNLIKELY THE REMARKS ARE THE LATEST INDICATION THE US GOVERNMENT FAVORS A STRONG YEN AS A TOOL FOR REDUCING JAPAN'S BULGING TRADE SURPLUSES MARKET PARTICIPANTS SAID THE ADMINISTRATION HAS SPELLED OUT THAT IT IS UNCONCERNED ABOUT THE LEVEL OF THE DOLLAR SAID JAMES T MCGROARTY SENIOR VICE PRESIDENT OF FOREIGN EXCHANGE AT GREENWICH CAPITAL MARKETS CURRENCY MARKETS DIDN'T REACT STRONGLY IMMEDIATELY TO MR CLINTON'S COMMENTS BECAUSE THEY CAME WHEN ACTIVITY WAS AT A TRICKLE AHEAD OF THE WEEKEND TRADERS SAID BUT THE POSTWEEKEND REACTION WAS STARK AND QUICK THE DOLLAR FELL TO A NEW POSTWORLD WAR II RECORD OF 11075 YEN EARLY IN ASIAN TRADING YESTERDAY BREAKING THE PREVIOUS RECORD OF 11212 YEN SET FRIDAY REPEATED COMMENTS FROM SENIOR JAPANESE OFFICIALS FAILED TO DERAIL THE YEN'S ADVANCE TRADERS SAID NOTING THAT THESE REMARKS AGAINST THE RISE WERE SIMILAR TO PREVIOUS ONES PERSISTENT BUT UNCONFIRMED RUMORS OF BANK OF JAPAN INTERVENTION TO BUY DOLLARS AROUND 11075 YEN FINALLY BROUGHT THE YEN'S MOVE TO A HALT SAID FUJI BANK'S MR GRIFFIN APPREHENSION ABOUT THE POSSIBILITY OF FURTHER CENTRAL BANK INTERVENTION KEPT THE YEN FROM STRENGTHENING FURTHER IN LATER TRADING HE ADDED THE WHITE HOUSE YESTERDAY ATTEMPTED TO CLARIFY MR CLINTON'S COMMENTS ON THE YEN THE REMARKS REFLECTED THE PRESIDENT'S VIEWS BUT WERE NOT NECESSARILY A MAJOR POLICY STATEMENT WHITE HOUSE COMMUNICATIONS DIRECTOR GEORGE STEPHANOPOULOS SAID AFTER MR STEPHANOPOULOS' COMMENTS THE DOLLAR REBOUNDED SLIGHTLY BUT THE REMARKS AREN'T LIKELY TO HAVE MUCH ENDURING IMPACT MR GRIFFIN SAID IF YOU LOOK AT IT CLOSELY THEY ADMINISTRATION OFFICIALS ARE STILL SAYING CLINTON WANTS A STRONGER YEN MR GRIFFIN SAID THE YEN'S SHARP UPSWING AGAINST THE DOLLAR SPILLED OVER INTO GAINS AGAINST OTHER MAJOR CURRENCIES AS WELL TRADERS SAID THE MARK FELL TO AN INTRADAY LOW OF 6875 YEN IN ASIAN TRADING SAID MR MCGROARTY OF GREENWICH CAPITAL MARKETS THIS WAS ITS LOWEST LEVEL SINCE EARLY 1989 DEALERS SAID BUT PROFITTAKING ON THE YEN'S ADVANCE IN NORTH AMERICAN TRADING LED THE MARK TO REBOUND SAID MR MCGROARTY THE YEN MADE A BIG MOVE AND PEOPLE WERE PAUSING TO DIGEST IT HE SAID LATE MONDAY IN NEW YORK THE MARK TRADED AT 6955 YEN UP FROM 6943 YEN LATE FRIDAY THE MARK'S BOUNCE BACK AGAINST THE YEN ALLOWED THE GERMAN CURRENCY TO FIRM AGAINST THE DOLLAR MESSRS MCGROARTY AND GRIFFIN SAID 9304200003 930420 LEISURE & ARTS ANGELENO KOREAN FOOD SCENE SURVIVES RIOTS BY AMY GAMERMAN LOS ANGELES LINDA BURUM WAS LOOKING FOR A NOODLE SHOP NOT JUST ANY NOODLE SHOP BUT ONE THAT SELLS KHAL KOOKSOO HANDPULLED KOREAN KNIFE NOODLES GOD I HOPE IT HASN'T BURNED DOWN SHE SAID ON HER SECOND UNSUCCESSFUL SPIN DOWN VERMONT AVENUE IN CENTRAL LOS ANGELES WHERE FIRES RAGED AND LOOTERS RAMPAGED LAST SPRING IN THE RIOTS FOLLOWING THE FIRST RODNEY KING VERDICT MS BURUM THE AUTHOR OF A GUIDE TO ETHNIC FOOD IN LOS ANGELES HARPERPERENNIAL 266 PAGES 11 WAS LEADING ME ON AN ALLDAY EATING TOUR OF KOREATOWN AS AN EDGY CITY AWAITED THE OUTCOME OF THE TRIAL OF FOUR POLICE OFFICERS CHARGED WITH VIOLATING MR KING'S CIVIL RIGHTS WE WERE DETERMINED TO SAMPLE THE BEST KOREATOWN HAD TO OFFER WONDERING IF THIS MIGHT BE OUR LAST CHANCE ONE OF THIS POLYGLOT CITY'S MOST INTREPID GASTROETHNOGRAPHERS MS BURUM A WILLOWY 50YEAROLD PURSUES ITS NEWEST FLAVORS WITH A DIZZY FRENETICISM SHE'S MUNCHED HER WAY FROM MEXICAN BIRRIERIAS IN THE INNER CITY FOR BIRRIA OR BRAISED GOAT TO VIETNAMESE CHARCUTERIES IN THE SAN GABRIEL VALLEY FOR SUBS MADE FROM PATE SHREDDED CARROTS CORIANDER AND FRENCH BREAD FROM THE HUMBLEST SALVADORAN PUPUSERIAS FOR PUPUSAS GROUNDCORN PANCAKES STUFFED WITH CHEESE OR MEAT TO SPRAWLING MILITANTLY UNAMERICANIZED JAPANESE MALLS EVEN SO MS BURUM DIDN'T COVER EVERYTHING IN THE LOS ANGELES FOOD COSMOS FOR HER BOOK WHICH GREW OUT OF HER FOOD COLUMNS FOR THE LOS ANGELES TIMES ETHNIC HERE MEANS NONAMERICAN SO DON'T LOOK FOR A WORD ON THE FOOD WAYS OF LOS ANGELES'S HUGE NATIVEBORN AFRICANAMERICAN POPULATION THERE'S NO HAWAIIAN EITHER SHE ADDS BUT THERE'S PLENTY OF KOREAN WITH 350000 RESIDENTS KOREATOWN ISN'T JUST THE CITY'S MOST VISIBLE INTERNATIONAL ENCLAVE IT'S THE BIGGEST KOREAN CITY OUTSIDE OF KOREA WITH ITS OWN RADIO AND TV STATIONS CAR DEALERSHIPS AND RESTAURANTS SOME 300 IN CENTRAL LOS ANGELES ALONE MS BURUM WORKED HER WAY THROUGH THE BEST OF THEM LEAVING NO BOWL OF KIMCHITHE POLYMORPHOUS PICKLED DISH THAT ACCOMPANIES EVERY KOREAN MEAL UNTASTED BUT THE LANDSCAPE HAS CHANGED A BIT SINCE SHE DID HER FIELDWORK HERE UNFORTUNATELY THIS MALL GOT BURNED DOWN SHE SAID PASSING A GRASSY LOT WHERE SHOPS AND RESTAURANTS ONCE DID BUSINESS THEY HAD GUARDS SHOOTING AT PEOPLE SHE NOTED OF ANOTHER STILL NO NOODLE SHOP PUTTING THOUGHTS OF SILKY KHAL KOOKSOO ASIDE WE PUSHED ONTO NAKWON JIP IT MEANS KOREAN SOUP PLACE MS BURUM EXPLAINED A MODEST RESTAURANT WITH TWO CLOCKS ON THE WALL ONE ON LOS ANGELES TIME THE OTHER ON SEOUL'S OH THEY'VE GOTTEN MENUS MS BURUM EXCLAIMED SCANNING A BILL OF FARE THAT INCLUDED BONE AND INTERNAL SOUP AND BOILED AND CHOPPED OX LEG SOUP THAT'S GOOD FOR A HANGOVER PEOPLE EAT IT LATE AT NIGHT WHEN THEY'VE BEEN OUT DRINKING SHE EXPLAINED ALTHOUGH NEITHER OF US HAD A HANGOVER IT WAS PAST LUNCH TIME AND THIS REPORTER WAS STARVING BUT MS BURUM WASN'T THINKING OX LEG SHE WAS THINKING TOFU SO BEFORE I COULD RAISE A SOUP SPOON WE WERE OUT THE DOOR HEADED FOR BEVERLY SOON TOFU IN A TINY STRIP MALL AS WE PERCHED ON STOOLS MADE FROM TREE TRUNKS UNDER A MOCK THATCHED ROOF A WAITRESS POURED CUPS OF COLD ROASTEDBARLEY TEA AND SET OUT DISHES OF KIMCHI RADISH CHUNKS IN A SPICY RED SAUCE CUCUMBER SLICES AND PICKLED CABBAGE OUR TOFU COMBO CAME BUBBLING IN A SMALL METAL CAULDRON HOT ENOUGH TO COOK THE EGG THAT THE WAITRESS CRACKED INTO THE ORANGE BROTH WHILE WE WAITED FOR THE EGG TO FIRM UP A LITTLE WE DUG INTO THE PEPPERY BROTH LOADED WITH TOFU SCALLIONS AND BITS OF MEAT AND SHELLFISH THE CREAMY SHREDS OF TOFU SOAKED UP THE BROTH WHILE PROVIDING A MELLOW COUNTERPART TO ITS HEAT FORTIFIED WE PRESSED ON TO THE NEXT STOP ON OUR TOUR THE HANNAN CHAIN SUPER MARKET WHERE AN ARMED GUARD STOOD WATCH AT THE DOOR AT FIRST GLANCE IT LOOKED JUST LIKE ANY OTHER SUPERMARKET WITH WOMEN'S MAGAZINES AT THE CHECKOUT COUNTER AND A BIG SALAD BAR COMPLETE WITH PLASTIC COUGHGUARD IN THE BACK EXCEPT THAT THE MAGAZINES WERE IN KOREAN AND THERE WASN'T A PESTOED PASTA IN SIGHT AT THE SALAD BAR WHICH WAS STOCKED WITH DISHES LIKE SEAWEED SALAD SPICY FRIED ANCHOVIES AND CRABS IN A RED SAUCE I JUST WANT TO SHOW YOU THESE NOODLES SAID MS BURUM PULLING ME OVER TO A NOODLE AISLE WHERE CUPS OF INSTANT NOODLES MADE IN JAPAN SAT ALONGSIDE BAGS OF TRADITIONAL NOODLES MADE FROM BUCKWHEAT AND POTATOES THE SUPERMARKET'S FROZENFOODS SECTION BOASTED FROZEN GREEN LAVER A POPULAR SEAWEED AND SOME OTHER STAPLES THIS IS A NEW ONE SAID MS BURUM APPROVINGLY FROZEN WILD GARLIC BACK IN THE CAR WE BYPASSED A KOREAN KARAOKE BAR AND HEADED FOR BUFFET PALACE IN THIS EASTMEETSWEST ALLYOUCANEAT JOINT TUBS OF NAENG MYUN BUCKWHEAT AND POTATOSTARCH NOODLES TOPPED WITH BEEF EGG AND TURNIP KIMCHI SAT A FEW FEET FROM A SOFTICECREAM MACHINE BUT BEFORE I COULD SAMPLE EITHER ONE MS BURUM WAS TUGGING ON MY ELBOW EAGER TO MOVE ON TO THE MECCA OF KOREATOWN KOREATOWN PLAZA A HUGE INDOOR MALL COMPLETE WITH A GLEAMING SUPERMARKET THAT OFFERS KOREANSTYLE POTATO SALAD IN THE DELI AND AN ENTIRE AISLE DEVOTED TO A VARIETY OF DRIED AND ROASTED SEAWEEDS WE HEADED FOR THE MALL'S INTERNATIONAL FOOD COURT WHERE A KIND OF FASTFOOD MULTICULTURALISM WAS IN FULL FORCE MOVING FROM SOUP AND DUMPLING STALLS SHOPPERS CAN GRAZE AT A KOREANSTYLE SUSHI BAR AND A WESTERN BURGER STAND AT THE NEW YORK BAKERY CROISSANTS AND BUTTER COOKIES WERE ARRAYED ALONGSIDE KOREANSTYLE MOCHI A GUMMY SWEETRICEPOWDER PASTRY FILLED WITH REDBEAN PASTE IT'S A TEXTURE A LOT OF WESTERNERS DON'T APPRECIATE MS BURUM SAID AS I BINNED MY MOCHI AFTER A FEW POLITE NIBBLES BACK OUTSIDE THE SCENT OF FRYING GARLIC WAS RISING IN THE AIR DINNER TIME WAS APPROACHING AND MOST NONKOREATOWN RESIDENTS WERE HEADING OUT OF THE CITY SINCE THE RIOTS RESTAURANTS ARE HAVING A LOT OF PROBLEMS GETTING CLIENTS FOR DINNER MS BURUM SAID THEY'RE DOING LOTS OF LUNCHES AND TAKEOUT BUT MS BURUM WANTED ME TO GET A TASTE OF HAPPY HOUR KOREANSTYLE AT A PUB SERVING ANJUKOREAN BAR FOOD SO ON TO THE YEEJOH AN ELEGANT PUB WITH LOW WOODEN TABLES SILKCUSHIONED CHAIRS AND A GUARD ON PATROL IN THE PARKING LOT THEY'RE DOING THE MORE UPSCALE THING HERE SAID MS BURUM ABRUPTLY DECIDING TO GO TO A TRULY DOWNSCALE SALOON TOAD AT THIS TINY PUB WHICH LOOKS MORE LIKE A SANDWICH SHOP A TABLE OF WOMEN WERE BUSY WASHING DOWN SLICES OF SOON DAE KOREAN BLOOD SAUSAGE WITH BEER WE ORDERED TONGDONGJU A RICE WINE SIMILAR TO SAKE AND PINDAETTUK A FRIED PANCAKE MADE FROM GROUND MUNG BEANS DELICIOUSLY CRISP AND LOADED WITH SCALLIONS ONE BITE OF PINDAETTUK CHANGED MY VIEW OF MUNG BEANS FOREVER DIPPED IN A SOY VINEGAR AND SESAMESEED SAUCE IT WAS EVEN BETTER BUT I WAS CURIOUS ABOUT THE HOUSE SPECIALTY BIBIM BAP HAD MS BURUM TRIED THIS RICE CASSEROLE MADE WITH THE RESTAURANT'S NAMESAKE NO SHE SAID CURTLY SIX DIFFERENT KIMCHIS AND A POTATO PANCAKE FILLED WITH JALAPENO SLICES BUT NO DETECTABLE TOAD PARTS ROUNDED OUT OUR COCKTAIL HOUR OUR CHECK ARRIVED WITH TWO STICKS OF KOREAN ACACIAFLAVORED GUM FOR LADY ONLY SAID THE WRAPPER NEITHER OF US REALLY FELT LIKE EATING DINNER AT THIS POINT BUT GASTRONOMY CALLED SO WE HEADED OVER TO THE CORNER PLACE AT THIS BARBECUE RESTAURANT EVERY TABLE IS OUTFITTED WITH A COPPER STOVE AND AN OVERHEAD VENT IT ALSO BOASTS A WHOPPING SELECTION OF KIMCHIS THE NINE DISHES THAT COVERED OUR TABLE INCLUDED SWEETENED BLACK BEANS WITH SESAME SEEDS AND WHITE KIMCHIRADISH SLICES IN ICED BRINE DINERS ORDER THE CUT OF MEAT THEY WANT TO EAT WHICH ARRIVES RAW IN A DISH OF MARINADE ALTHOUGH MS BURUM WASN'T SURE WHAT PART OF THE COW IT CAME FROM SHE OPTED FOR KILMOKGU THE HOUSE SPECIAL WE COOKED THE SLICED MEAT ON THE BRAZIER AND ATE IT WITH SHREDDED SCALLIONS ROLLING BACK TO MY HOTEL AFTERWARD I FELT SO FULL I ALMOST DIDN'T MIND MISSING THE KHAL KOOKSOO JOINT WHICH AS IT TURNS OUT HADN'T BURNED DOWN AFTER ALL BUT WAS STANDING INTACT ON ANOTHER STREET AND AFTER SATURDAY'S VERDICT THE REST OF MS BURUM'S EXOTIC LOS ANGELES IS HAPPILY STILL JUST AS SHE SHOWED IT TO ME 9304200002 930420 WHO'S NEWS PHILIP MORRIS TAPS BIBLE TO BE TOBACCO CHIEF BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PHILIP MORRIS COS SHOOK UP THE TOP MANAGEMENT OF ITS US TOBACCO UNIT NAMING A NEW BOSS TO OVERSEE THE UNIT'S PRESIDENT AND REPLACING THE SUBSIDIARY'S TOP MARKETING EXECUTIVE PHILIP MORRIS'S 12 BILLION DOMESTIC TOBACCO BUSINESS HAS BEEN PUT UNDER THE CONTROL OF GEOFFREY C BIBLE WHO WAS NAMED TO THE NEWLY CREATED POST OF EXECUTIVE VICE PRESIDENT WORLDWIDE TOBACCO MR BIBLE WILL OVERSEE WILLIAM I CAMPBELL PRESIDENT OF THE US TOBACCO BUSINESS WHO PREVIOUSLY REPORTED TO PHILIP MORRIS'S NO 2 EXECUTIVE PRESIDENT AND CHIEF OPERATING OFFICER WILLIAM MURRAY THE BIG FOOD AND TOBACCO MARKETER ALSO SHUNTED ASIDE THE US TOBACCO UNIT'S SENIOR VICE PRESIDENT OF MARKETING LAWRENCE S WEXLER AFTER ONLY SEVEN MONTHS ON THE JOB APPOINTING HIM TO THE NEWLY CREATED POST OF SENIOR VICE PRESIDENT FINANCING AND PLANNING THE RESHUFFLING FOLLOWS PHILIP MORRIS'S APRIL 2 ANNOUNCEMENT THAT IT PLANNED TO SLASH THE PRICE OF MARLBOROS AS MUCH AS 20 THE BELATED ATTEMPT TO COMPETE AGAINST CHEAPER PRIVATELABEL UPSTARTS CAME ONLY AFTER THE COMPANY HAD CONSISTENTLY UNDERESTIMATED THE STRENGTH OF THE LOW END OF THE MARKET THE NEW STRATEGY MOREOVER IS EXPECTED TO REDUCE PROFITS AS MUCH AS 2 BILLION THIS YEAR A DECLINE OF 40 FOR THE US TOBACCO UNIT PHILIP MORRIS SHARES PLUNGED 23 IN VALUE THE DAY OF THE ANNOUNCEMENT AND STILL HAVEN'T RECOVERED CLOSING YESTERDAY AT 4875 APIECE DOWN 125 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING PHILIP MORRIS DENIED YESTERDAY THAT THE MANAGEMENT MOVES AMOUNT TO A SHAKEUP NOBODY HAS BEEN LET GO SAID A COMPANY SPOKESMAN IT IS STRICTLY MOVING PEOPLE AROUND HE ADDED THAT THE CHANGES DON'T REPRESENT A DEMOTION FOR EITHER EXECUTIVE MR CAMPBELL IS STILL RUNNING THE US TOBACCO BUSINESS THE SPOKESMAN SAID HIS REPORTING RELATIONSHIP IS THE ONLY THING THAT HAS CHANGED BUT SOME ANALYSTS SAW THE MANAGEMENT RESHUFFLING AS A SIGN THAT MR CAMPBELL'S JOB AS US TOBACCO PRESIDENT IS ON THE LINE PARTICULARLY GIVEN THE UNIT'S LESSTHANSEAMLESS PERFORMANCE IN STEMMING THE INROADS OF CHEAP BRANDS SO FAR THE PEOPLE AT PHILIP MORRIS WHO SHOULD HAVE SEEN THIS COMING HAVE LOST SOME STATURE CONTENDED GARY D BLACK AN ANALYST WITH SANFORD C BERNSTEIN & CO THE GUY WHO IS CALLING THE SHOTS NOW IS MR BIBLE THE LATEST SHIFT ALSO MARKS A CLEAR REDUCTION IN CLOUT FOR MR WEXLER AFTER THE PRESIDENT'S JOB THE TOP MARKETING SPOT IS THE MOST POWERFUL POSITION AT A CONSUMER PRODUCTS COMPANY AND MOVING MR WEXLER INTO A STAFF PLANNING SPOT IS A COMEDOWN FOR THE PAST SEVEN MONTHS HE HAD BEEN ONE OF THE MOST VISIBLE EXECUTIVES IN THE TOBACCO BUSINESS THE PHILIP MORRIS SPOKESMAN SAID MR BIBLE'S PRESENCE IN THE NEW POST OVERSEEING ALL TOBACCO BUSINESS WOULD STRENGTHEN AND ENHANCE THE TEAM MR BIBLE WILL REPORT TO MR MURRAY MR BIBLE AND THE OTHER PHILIP MORRIS EXECUTIVES WEREN'T AVAILABLE FOR COMMENT A SPOKESMAN SAID AND MESSRS BIBLE WEXLER AND CAMPBELL DIDN'T RETURN CALLS SEEKING COMMENT WITH THE 55YEAROLD MR BIBLE PHILIP MORRIS IS DRAFTING ONE OF ITS MOST CAPABLE EXECUTIVES TO DEAL WITH THE COMPANY'S MOST PRESSING PROBLEM DOMESTIC TOBACCO ACCOUNTED FOR 47 OF PHILIP MORRIS'S OPERATING PROFIT LAST YEAR BUT MARLBORO SHIPMENTS DROPPED 56 IN THAT PERIOD AND FELL ANOTHER 8 IN THE FIRST QUARTER AMID FIERCE COMPETITION FROM CHEAPER BRANDS A NATIVE OF AUSTRALIA MR BIBLE HAS BEEN CLOSELY INVOLVED IN THE GROWTH OF PHILIP MORRIS'S INTERNATIONAL TOBACCO BUSINESS AND IN THE PROCESS HE HAS WAGED NUMEROUS PRICE WARS SIMILAR TO THE ONE THAT PHILIP MORRIS HAS LAUNCHED IN THE US IT ISN'T CLEAR WHAT THE ASCENSION OF MR BIBLE MEANS FOR PHILIP MORRIS'S PLAN TO DISCOUNT MARLBOROS IN SOME MARKETS TO REGAIN MARKET SHARE A PHILIP MORRIS SPOKESMAN SAID MR BIBLE HASN'T BEEN INVOLVED IN DEVELOPING THE STRATEGY WHICH SOME INDUSTRY EXECUTIVES SAY IS A RISKY APPROACH THAT COULD PERMANENTLY REDUCE THE VALUE AND PRICE OF ONE OF THE MOST PROFITABLE CIGARETTE BRANDS IN AMERICA BUT PHILIP MORRIS INSIDERS SAY MR BIBLE WOULDN'T HAVE TAKEN THE NEW ASSIGNMENT IF HE DISAGREED WITH THE STRATEGY MR BIBLE WAS A LONGSHOT CONTENDER FOR THE COMPANY'S TOP SPOT WHEN HAMISH MAXWELL RETIRED IN 1991 MICHAEL A MILES WAS ULTIMATELY NAMED CHAIRMAN AND CHIEF EXECUTIVE OF PHILIP MORRIS WHILE MR BIBLE HAS BEEN RESPONSIBLE FOR PHILIP MORRIS'S FOOD AND TOBACCO BUSINESS OVERSEAS JOHN M KEENAN PRESIDENT OF KRAFT GENERAL FOODS INTERNATIONAL WILL TAKE OVER RESPONSIBILITIES FOR THE INTERNATIONAL FOOD BUSINESS 9304200001 930420 BUSINESS BRIEF ZAPATA CORP COMPANY MOVES TO EXPAND INTO NATURAL GAS SERVICES ZAPATA CORP HOUSTON EXPANDING INTO THE NATURAL GAS SERVICES INDUSTRY SAID IT AGREED TO BUY NATURAL GAS COMPRESSION OPERATIONS FROM HOLT COS FOR 87 MILLION IN CASH AND STOCK ZAPATA WOULD PAY FOR THE BUSINESSES AFFILIATED WITH CLOSELY HELD HOLT IN SAN ANTONIO WITH PROCEEDS FROM A SALE OF 35 MILLION TIDEWATER INC COMMON SHARES ZAPATA A NATURAL GAS AND OIL PRODUCTION COMPANY OWNS A TOTAL OF 8260000 SHARES OF TIDEWATER THE PURCHASE OF THE COMPRESSION STATIONS IS AN EFFORT TO ENTER THE NATURAL GAS TRANSPORTATION INDUSTRY AND EDGE AWAY FROM OFFSHORE PRODUCTION AND EXPLORATION SAID A ZAPATA SPOKESMAN ALSO ZAPATA SAID IT AGREED WITH A UNIT OF LONDONBASED NOREX PLC TO RECEIVE MORE THAN 111 MILLION BY ISSUING DEBT AND EQUITY NOREX INVESTS IN THE MARINE OIL AND GAS INDUSTRY 9304200122 930325 COUNTERPOINT REAGAN BOOSTERS GO AHEAD AND MAKE MY DAY BY JUSTIN KAPLAN I CONFESS THAT I WAS LESS THAN DAZZLED BY THE REAGAN PRESIDENCY AND ITS RHETORIC BUT IT OCCURS TO ME NOW THAT IN SOME WAYS I WAS DOING HIS REPUTATION A FAVOR BY THE SELECTION I MADE AS THE GENERAL EDITOR OF THE NEW 16TH EDITION OF BARTLETT'S FAMILIAR QUOTATIONS MORE IN HIS CASE WOULD HAVE AMOUNTED TO LESS IF ONE WERE TO APPLY STANDARDS OF ORIGINALITY AND SUBSTANCE TAKING ITS CUES FROM THE HERITAGE FOUNDATION THE WALL STREET JOURNAL CASTIGATED ME IN A FEB 25 EDITORIAL FOR ALLOWING MY ALLEGED LIBERAL AND ELITE BIAS TO DEPRIVE FORMER PRESIDENT RONALD REAGAN OF ADEQUATE REPRESENTATION IN THE NEW BARTLETT IT SAID THAT THE THREE REAGAN QUOTATIONS IN THIS EDITION THERE ARE IN FACT FIVE HAD BEEN CHOSEN TO ELIMINATE ANY SUGGESTION THAT RONALD REAGAN EVER HAD ANYTHING SERIOUS TO SAY TWO OF THESE SUPPOSEDLY UNFAMILIAR QUOTATIONS BY THE WAY ARE THE SAME AND ONLY ONES FROM MR REAGAN THAT APPEAR IN RESPECTFULLY QUOTED A HIGHLY REGARDED REFERENCE BOOK PUBLISHED BY THE LIBRARY OF CONGRESS THEY ARE GOVERNMENT IS LIKE A BIG BABY AN ALIMENTARY CANAL WITH A BIG APPETITE AT ONE END AND NO RESPONSIBILITY AT THE OTHER A REMARK MR REAGAN MADE FREQUENTLY WHILE CAMPAIGNING FOR GOVERNOR OF CALIFORNIA IN 1965 AND WE'RE THE PARTY THAT WANTS TO SEE AN AMERICA IN WHICH PEOPLE CAN STILL GET RICH A SENTIMENT VOICED AT A REPUBLICAN CONGRESSIONAL DINNER IN 1982 MR REAGAN HAD MANY INTELLIGENT AND FORCEFUL PEOPLE ADVISING HIM BUT HE COULD NOT BE DESCRIBED AS A MEMORABLE PHRASE MAKER OR ORIGINAL THINKER HE HAD A USEFUL VOCABULARY OF SHOW BUSINESS QUIPS AND PUNCH LINES BUT ASIDE FROM THIS MUCH OF WHAT HE SAID WAS SIMPLY NOT MEMORABLE AND THE SMALL PART THAT WAS MEMORABLE HAD A CERTAIN INADVERTENT COMIC OR SEMIVACANT CHARACTER FOR EXAMPLE MY FELLOW AMERICANS I'M PLEASED TO TELL YOU TODAY THAT I'VE SIGNED LEGISLATION THAT WILL OUTLAW RUSSIA FOREVER WE BEGIN BOMBING IN FIVE MINUTES FROM A 1984 SOUND CHECK OR A FEW MONTHS AGO I TOLD THE AMERICAN PEOPLE I DID NOT TRADE ARMS FOR HOSTAGES MY HEART AND MY BEST INTENTIONS STILL TELL ME THAT IS TRUE BUT THE FACTS AND THE EVIDENCE TELL ME IT IS NOT 1987 SPEECH MR REAGAN DID NOT DESERVE MORE SPACE IN BARTLETT THAN HE ALREADY HAS I'M CONFIRMED IN THIS BY A TYPESCRIPT TITLED QUOTES OF RONALD REAGAN SENT BY RALPH C BLEDSOE DIRECTOR OF THE RONALD REAGAN LIBRARY IN SIMI VALLEY CALIF I GUESS MR BLEDSOE DID THIS AT THE PROMPTING OF ADAM MEYERSON OF THE HERITAGE FOUNDATION AUTHOR OF TWO HIGHLY CRITICAL NOT TO SAY BILIOUS OPED PIECES IN OTHER NEWSPAPERS ABOUT MY EDITING OF BARTLETT SINCE RONALD REAGAN IS WIDELY RECOGNIZED AS ONE OF THE MOST MEMORABLE ORATORS OF THE 20TH CENTURY MR BLEDSOE WROTE IN HIS COVERING LETTER TO ME WE FELT WE COULD ASSIST YOU BY ATTACHING A SELECTION OF RONALD REAGAN QUOTATIONS WE HOPE THIS MATERIAL WILL BE OF HELP FOR YOUR FUTURE PUBLICATIONS THE ACCOLADE MEMORABLE ORATOR INVITES A COMPARISON OF RONALD REAGAN WITH DEMOSTHENES WINSTON CHURCHILL AND MARTIN LUTHER KING JR AND IS MUCH LESS APPROPRIATE THAN GREAT COMMUNICATOR THIS IS AT LEAST ACCURATE FOR IT SUGGESTS SOMETHING MR REAGAN UNDENIABLY HAD A WINNING AND SINCERE MANNER EQUALLY EFFECTIVE PROMOTING COMMERCIAL PRODUCTS AND POLITICAL POLICIES ASSUMING THAT MR BLEDSOE'S LITTLE TREASURY FOLLOWS THE OFFICIAL LINE AS TO WHAT ARE THE BEST REAGAN QUOTATIONS AND CAN BE REGARDED AS CANONICAL LET'S LOOK AT THE RECORD AS AL SMITH USED TO SAY AND TO BORROW A SCRIPTURAL PHRASE LUKE 1922 JUDGE MR REAGAN OUT OF HIS OWN MOUTH HERE COURTESY OF MR BLEDSOE AND THE STAFF OF THE RONALD REAGAN LIBRARY ARE THREE EXAMPLES OF WHAT I'D HAVE TO CALL GREAT COMMUNICATIONS EACH OF THEM BANAL DISINGENUOUS OR IN SOME OTHER RESPECT OFF THE MARK LINCOLN WAS A SIMPLE MAN BUT HE SPOKE GREAT TRUTHS DINNER SPEECH MAY 20 1982 GRENADA WAS A SOVIETCUBAN COLONY BEING READIED AS A MAJOR BASTION TO EXPORT TERROR AND UNDERMINE DEMOCRACY WE GOT THERE JUST IN TIME ADDRESS TO THE NATION OCT 27 1983 THE CONTRAS IN NICARAGUA ARE THE MORAL EQUAL OF OUR FOUNDING FATHERS AND THE BRAVE MEN AND WOMEN OF THE FRENCH RESISTANCE REMARKS MARCH 1 1985 THE BLEDSOE FILE SHOWS THAT MR REAGAN ALSO APPROPRIATED THE WORDS OF OTHERS WITHOUT ATTRIBUTION OR LATER ACKNOWLEDGMENT JACK DEMPSEY HONEY I FORGOT TO DUCK REMARK PURVEYED TO THE PRESS BY LYN NOFZIGER AFTER THE HINCKLEY ASSASSINATION ATTEMPT MARCH 30 1981 ABRAHAM LINCOLN WE ALSO DEMEAN ALL THOSE WHO HAVE GIVEN THAT LAST FULL MEASURE OF DEVOTION SPEECH DEC 12 1983 FROM MR REAGAN'S 1964 VENTURE INTO POLITICS ON BEHALF OF SEN BARRY GOLDWATER THERE'S EVEN A GROTESQUE CONFLATION OF LINCOLN AND FDR YOU AND I HAVE A RENDEZVOUS WITH DESTINY WE WILL PRESERVE FOR OUR CHILDREN THIS THE LAST BEST HOPE OF MAN ON EARTH OR WE WILL SENTENCE THEM TO TAKE THE LAST STEP INTO A THOUSAND YEARS OF DARKNESS SPEECH OCT 27 1964 IN CONTRAST THE REAGAN SIGNATURE LINE IN THE BLEDSOE TREASURY THERE YOU GO AGAIN HAS AN ALMOST ATTIC QUALITY THE BLEDSOE FILE ALSO CONFIRMS MY IMPRESSION THAT MANY OF THE PUBLIC STATEMENTS OF MR REAGAN HAVING ANY SIGNIFICANT FORCE CAME FROM THE MOVIES AND THAT TO SOME EXTENT THE GIPPER WAS AN ACTOR MASQUERADING AS A LEADER MY EDITION OF BARTLETT CITES EVIL EMPIRE AS WELL AS I HAVE ONLY ONE THING TO SAY TO THE TAX INCREASERS GO AHEAD AND MAKE MY DAY' AMONG THE MOVIERELATED EXAMPLES IN THE BLEDSOE TREASURY OF QUOTATIONS I FIND I PAID FOR THIS MICROPHONE REMARK FEB 23 1980 AND YOU AIN'T SEEN NOTHING YET REMARK OCT 26 1984 HERE'S ANOTHER ONE ALSO PURVEYED BY MR NOFZIGER FROM THE PRESIDENT'S BEDSIDE AFTER THE ASSASSINATION ATTEMPT IF I GOT THIS MUCH ATTENTION IN HOLLYWOOD I'D NEVER HAVE LEFT FROM A PLACE FAR BACK IN THE SHADOWS OF SOME SPECTRAL MOVIE SET I THINK I HEAR THE ASSENTING VOICE OF DAN QUAYLE HOW TRUE THAT IS MR KAPLAN GENERAL EDITOR OF BARTLETT'S FAMILIAR QUOTATIONS WON THE PULITZER PRIZE AND THE NATIONAL BOOK AWARD FOR HIS BIOGRAPHY MR CLEMENS AND MARK TWAIN HE IS PROFESSOR OF CONTEMPORARY LETTERS AT THE COLLEGE OF THE HOLY CROSS WORCESTER MASS SEE RELATED LETTERS LISTEN REAGAN HAD PLENTY TO SAY WSJ APRIL 20 1993 9303250091 9304200112 930310 DRUG EXECUTIVES YIELD GROUND TO WHITE HOUSE UNDER FIRE INDUSTRY AGREES TO LAW ON CONTROLLING ITS PRICES VOLUNTARILY BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL DRUG INDUSTRY EXECUTIVES UNDER FIRE FROM THE CLINTON ADMINISTRATION OVER PRICING SAID THEY MADE SEVERAL CONCESSIONS IN AN UNPUBLICIZED MEETING WITH TOP WHITE HOUSE STAFFERS MONDAY IN PARTICULAR INDUSTRY OFFICIALS TOLD THE WHITE HOUSE THAT THE DRUG COMPANIES WANT TO DEVELOP A WAY TO HOLD DOWN ANNUAL INCREASES IN PRESCRIPTION DRUG PRICES VOLUNTARILY THE INDUSTRY OFFICIALS AGREED FOR THE FIRST TIME TO GO ALONG WITH PROPOSED LAWS THAT WOULD MONITOR AND ENFORCE THE VOLUNTARY CONTROLS THE DRUG EXECUTIVES ALSO TOLD THE WHITE HOUSE THAT THE INDUSTRY WILL ASK THE JUSTICE DEPARTMENT FRIDAY TO ALLOW THE DRUG MAKERS TO DISCUSS PRICING POLICIES AMONG THEMSELVES SUCH DISCUSSIONS CURRENTLY ARE OFFLIMITS BECAUSE THEY WOULD VIOLATE ANTITRUST LAWS AGAINST PRICE FIXING WE SEE THIS AS A VERY MAJOR STEP TO SHOW THE ADMINISTRATION THAT THE INDUSTRY WANTS TO DEAL WITH THE RISING COST OF PHARMACEUTICALS SAID GERALD J MOSSINGHOFF PRESIDENT OF THE PHARMACEUTICAL MANUFACTURERS' ASSOCIATION THE INDUSTRY'S WASHINGTON TRADE GROUP WHICH SET UP THE MEETING BETWEEN IRA MAGAZINER OF THE WHITE HOUSE AND TOP EXECUTIVES FROM SIX DRUG COMPANIES A SPOKESMAN FOR MR MAGAZINER SAID WE'RE HAPPY TO SEE PEOPLE ARE CONSIDERING CREATIVE AND INNOVATIVE SOLUTIONS TO BRING DOWN THE COST OF HEALTH CARE SEVERAL INDUSTRY PEOPLE FAMILIAR WITH THE MEETING HOWEVER SAID THE DRUG COMPANY EXECUTIVES WERE DISAPPOINTED THAT MR MAGAZINER REBUFFED THEIR REQUESTS TO PARTICIPATE IN WORKING GROUPS DEVELOPING HEALTH REFORM IDEAS PRESIDENT CLINTON AND OTHER ADMINISTRATION OFFICIALS HAVE ATTACKED THE INDUSTRY FOR THE HIGH COST OF VACCINES AND OTHER PRESCRIPTION MEDICINES STUDIES SHOW THAT DRUG PRICES ROSE TWO TO THREE TIMES THE RATE OF INFLATION DURING THE 1980S THOUGH PRICE RISES ON AVERAGE HAVE MODERATED IN THE PAST YEAR NONETHELESS DRUG MAKERS HAVE COME UNDER A WITHERING ATTACK FROM THE ADMINISTRATION AS BEING PART OF THE REASON HEALTH CARE COSTS HAVE EXPLODED STUNG BY THE FEROCITY OF THE ATTACK AND WORRIED THAT THE WHITE HOUSE'S HEALTH CARE REFORM PROGRAM WILL CALL FOR PRICE CONTROLS AND ROLLBACKS ON HIGHPRICED MEDICINES MANY DRUG COMPANY EXECUTIVES HAVE SCRAMBLED IN RECENT WEEKS TO COME UP WITH A RESPONSE OVER THE WEEKEND REPRESENTATIVES FROM MORE THAN A DOZEN DRUG COMPANIES MET IN BOCA RATON FLA IN A MEETING ORGANIZED BY THE INDUSTRY TRADE GROUP TO HASH OUT A FORMAL PROPOSAL TO PRESENT TO THE WHITE HOUSE ABOUT EIGHT MAJOR DRUG MAKERS INCLUDING MERCK & CO PFIZER INC AND GLAXO HOLDINGS PLC HAVE PUBLICLY PLEDGED TO HOLD AVERAGE ANNUAL PRICE INCREASES TO THE RATE OF INFLATION BUT MANY DRUG COMPANIES DON'T WANT TO BE BOUND BY THE SAME PLEDGE AND THE DRUG MAKERS WHO FAVOR VOLUNTARY PRICE CONTROLS HAVE COMPLAINED THAT THEY HAVEN'T BEEN ABLE TO DEBATE A PRICING POLICY AMONG THEMSELVES FOR FEAR OF VIOLATING ANTITRUST LAW NONETHELESS MR MOSSINGHOFF SAID HE AND THE SIX DRUG COMPANY EXECUTIVES TOLD MR MAGAZINER THAT THE INDUSTRY WILL BACK A PLAN TO INCLUDE PRESCRIPTION MEDICINES AS A STANDARD BENEFIT IN A NEW MANAGED COMPETITION HEALTH INSURANCE SETUP MR MOSSINGHOFF SAID THE INDUSTRY BELIEVES MANAGED CARE PLANS WILL FORCE THE DRUG COMPANIES TO COMPETE FOR BUSINESS BY HOLDING DOWN PRICES BUT WE UNDERSTAND THAT THE WHITE HOUSE WANTS SOME WAY TO KEEP PRICES RISES UNDER CONTROL RIGHT NOW MR MOSSINGHOFF SAID SEVERAL INDUSTRY EXECUTIVES SAID THE DRUG INDUSTRY IS STILL SHARPLY DIVIDED OVER THE VOLUNTARY PLEDGE PROGRAM DESPITE THE WHITE HOUSE MEETING THERE'S A GOOD PORTION OF THE DRUG INDUSTRY LEADERSHIP THAT WANTS TO GO ALONG WITH THE WHITE HOUSE PROGRAM AS A WAY TO WARD OFF PRICE CONTROLS SAID ONE EXECUTIVE BUT A LOT OF OTHER COMPANIES DON'T WANT TO GO ALONG HE SAID DESPITE THE DISAGREEMENTS THE DRUG INDUSTRY REPRESENTATIVES TOLD MR MAGAZINER THAT THE INDUSTRY WILL SUPPORT LEGISLATION THAT WOULD HAVE THE GOVERNMENT PAY FOR OUTPATIENT PRESCRIPTION MEDICINES FOR MEDICARE'S ELDERLY RECIPIENTS CURRENTLY MEDICARE DOESN'T COVER RECIPIENTS' OUTPATIENT DRUG BILLS THE PMA SAID THE DRUG EXECUTIVES AT THE WHITE HOUSE WERE JOHN STAFFORD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF AMERICAN HOME PRODUCTS CORP IRWIN LERNER CHAIRMAN OF HOFFMANNLA ROCHE INC THE US UNIT OF ROCHE HOLDING LTD PAUL FREIMAN CHAIRMAN AND CHIEF EXECUTIVE OF SYNTEX CORP RICHARD KOLGAN PRESIDENT OF SCHERINGPLOUGH CORP ROBERT WILSON VICE CHAIRMAN OF JOHNSON & JOHNSON AND MARK NOVITCH VICE CHAIRMAN OF UPJOHN CO SEE RELATED LETTER DRUG MAKERS' STANCE ON VOLUNTARY CONTROLS WSJ APRIL 20 1993 9303100075 9304200104 930305 ENVIRONMENT OFFICIALS STUDY ANTIPOLLUTION GASOLINE FOR HEALTH RISKS BY ROBERT JOHNSON AND SCOTT KILMAN STAFF REPORTERS OF THE WALL STREET JOURNAL A CLEANERBURNING GASOLINE BLEND THAT IS ONE CORNERSTONE OF THE NATION'S ANTIPOLLUTION EFFORTS IS BEING INVESTIGATED BY THE ENVIRONMENTAL PROTECTION AGENCY AS A POSSIBLE HEALTH THREAT COMPLAINTS INCLUDING HEADACHES AND NAUSEA BY CONSUMERS IN ALASKA HAVE ALREADY LED TO A BAN OF THE MOST COMMON FORM OF SOCALLED OXYGENATED GASOLINE IN FAIRBANKS ALASKA GOV WALTER HICKEL HALTED SALES OF THE NEW FUEL IN DECEMBER AFTER ENVIRONMENTAL OFFICIALS IN FAIRBANKS RECEIVED 120 COMPLAINTS OF ILLNESS DURING THE FIRST FOUR WEEKS IT WAS SOLD LAST NOVEMBER PROTESTERS PARADED IN CARS DRAPED IN BLACK CREPE PAPER THE EPA HAS RECEIVED OTHER REPORTS OF MINOR AILMENTS FROM PEOPLE REFUELING AND MOTORING WITH OXYGENATED FUEL IN COLORADO MONTANA AND NEW JERSEY THE EPA AND THE FEDERAL CENTERS FOR DISEASE CONTROL AND PREVENTION ARE FOLLOWING UP ON CONSUMER COMPLAINTS THE HEALTH COMPLAINTS RAISE QUESTIONS ABOUT THE MANDATED USE OF OXYGENATED FUEL AS SPECIFIED IN THE CLEAN AIR ACT AMENDMENTS OF 1990 THE OXYGENATE IN QUESTION IS CALLED METHYL TERTIARY BUTYL ETHER OR MTBE EPA OFFICIALS ADMIT THEY WERE SURPRISED TO FIND MTBE IN BLOOD SAMPLES FROM PEOPLE IN ALASKA THOUGH THEY STILL AREN'T SURE IT IS A HEALTH HAZARD FEDERAL INVESTIGATORS SAY THEY WON'T HAVE ANY DEFINITIVE ANSWERS TO THE HEALTH QUESTIONS ABOUT MTBE FOR SOME TIME THE EPA SAYS IT HOPES TO HAVE ENOUGH INFORMATION BY NOVEMBER WHEN THE NEXT PERIOD OF MANDATED USE WOULD BEGIN TO DECIDE WHETHER IT NEEDS TO RECONSIDER THE USE OF MTBE THE REGULATIONS REQUIRING THE USE OF OXYGENATED FUEL TOOK EFFECT LAST FALL AT ABOUT THE SAME TIME MTBE MANUFACTURERS CONCLUDED A LONGTERM STUDY SHOWING A LOW INCIDENCE OF KIDNEY TUMORS IN MALE RATS EXPOSED TO HIGH DOSES OF MTBE MARY SMITH DIRECTOR OF THE EPA'S FIELD OPERATIONS AND SUPPORT DIVISION SAYS WE DON'T HAVE A BOTTOM LINE YET ON THE CANCER ISSUE WE'RE STILL STUDYING WHETHER IT'S A CARCINOGEN A SUBSTANCE THAT PRODUCES CANCER A PRELIMINARY REPORT BY EPIDEMIOLOGISTS AT THE CDC SHOWS THAT THE BLOOD OF SEVERAL FAIRBANKS RESIDENTS CONTAINED MEASURABLE LEVELS OF MTBE THE RESEARCHERS SAY THEY AREN'T CERTAIN WHETHER THE GASOLINE'S FUMES AND EXHAUST FROM VEHICLES BURNING THE FUEL CAUSE ANYTHING MORE SERIOUS THAN TEMPORARY DISCOMFORT BECAUSE LONGTERM RESEARCH ON HUMANS HASN'T BEEN DONE YET OFFICIALS AT ARCO CHEMICAL CO THE BIGGEST US PRODUCER OF MTBE SAY ITS GASOLINE ADDITIVE ISN'T A CANCER THREAT TO CONSUMERS THE EXPOSURE LEVEL IS JUST TOO LOW SAYS LARRY ANDREWS MANAGER OF TOXICOLOGY AT ARCO CHEMICAL BASED IN NEWTOWN SQUARE PA ACCORDING TO MR ANDREWS THE PARTICIPANTS IN THE CDC STUDY BREATHED AIR WITH ROUGHLY 100 PARTS PER BILLION OF MTBE VS THE 3000 PARTS PER MILLION OF MTBE INHALED BY RODENTS IN THE CANCER STUDY ARCO CHEMICAL OF WHICH ATLANTIC RICHFIELD CO OWNS 83 SAYS THAT IT ISN'T ANY SURPRISE THAT MTBE SHOWS UP IN MINUTE LEVELS IN BLOOD BUT THAT IT IS BAFFLED BY THE REPORTS OF HEADACHES AND NAUSEA THE COMPANY SAYS RESIDENTS HAVEN'T COMPLAINED IN DENVER AND LAS VEGAS WHERE THE ADDITIVE HAS BEEN USED FOR SEVERAL YEARS ARCO CHEMICAL IS STARTING A STUDY AT RUTGERS UNIVERSITY TO PROBE AMONG OTHER THINGS THE AMOUNT OF MTBE INHALED BY NEW JERSEY COMMUTERS THOUGH THE EXISTENCE OF CERTAIN CARCINOGENS IN GASOLINE AND CONCERNS ABOUT THE EXPOSURE OF REFINERY WORKERS TO THEM AREN'T NEW WORRIES OVER THE NEW METHANOL ADDITIVE THROW AN UNEXPECTED WRENCH RIGHT INTO THE MIDDLE OF WASHINGTON'S ANTIPOLLUTION STRATEGY UNDER THE CLEAN AIR ACT AMENDMENTS OXYGENATED GASOLINE DESIGNED TO REDUCE DANGEROUS CARBON MONOXIDE EMISSIONS BECAME THE WINTERTIME STANDARD FROM NOV 1 TO FEB 28 IN 39 METROPOLITAN AREAS THAT HAVE UNHEALTHY LEVELS OF CARBON MONOXIDE THE EPA ESTIMATES THAT 70 TO 90 OF CARBON MONOXIDE POLLUTION COMES FROM MOTOR VEHICLES AND BURNING OXYGENATES PRODUCES LOWER LEVELS OF THE POISON IRONICALLY SOME OF THE SAME ENVIRONMENTALISTS WHO PRESSED FOR THE LAW REQUIRING MTBE USE NOW SAY CONGRESS MAY HAVE MOVED TOO FAST PEOPLE SHOULDN'T BE EXPOSED AS GUINEA PIGS SAYS DAVID DONIGER AN ATTORNEY AT THE NATURAL RESOURCES DEFENSE COUNCIL IN WASHINGTON NOW MTBE ITSELF HAS BECOME A POLLUTANT TO BE SURE THE CRITICISM OF MTBE IS BEING MET WITH CONSIDERABLE SKEPTICISM BY SOME FEDERAL AND LOCAL ENVIRONMENTAL OFFICIALS SAYS THE EPA'S MS SMITH WHO LIVES IN THE WASHINGTON AREA I FILL MY CAR WITH MTBE AND I HAVEN'T FELT ANY ILL EFFECTS SHE SAYS SOME MOTORISTS COMPLAIN THAT GASOLINE CONTAINING MTBE SMELLS BAD AND THEY MAY BE OVERREACTING MOREOVER SAY STATE CLEANAIR OFFICIALS IN ALASKA AND MONTANA MANY OF THE COMPLAINTS THAT MTBE CAUSED FLULIKE SYMPTOMS OCCURRED DURING THE MIDDLE OF FLU SEASON THE MOTIVES OF SOME WHO OBJECT TO MTBE MAY BE AT LEAST PARTLY ECONOMIC THE PETROCHEMICAL HAS ONE MAJOR COMPETITOR ETHANOL MADE MOSTLY BY REFINING CORN THAT PITS THE CORN INDUSTRY AGAINST PETROLEUM REFINERS WHO MAKE MOST OF THE METHANOL USED IN MTBE AT STAKE IS THE WHOLESALE MARKET FOR OXYGENATED FUEL WHICH RANGED FROM 14 MILLION TO 16 MILLION A DAY DURING THE RECENT WINTER SEASON ACCORDING TO OIL INDUSTRY OFFICIALS MTBE HAS A 70 SHARE OF THE OXYGENATED GASOLINE MARKET WITH ETHANOL AT 30 IN MONTANA A PANEL OF PHYSICIANS APPOINTED TO STUDY COMPLAINTS ABOUT ILLNESS FROM MTBE RECOMMENDED RECENTLY THAT THE SALE OF OXYGENATED FUEL CONTINUE SO LONG AS IT'S MADE FROM ETHANOL BUT TO THE EPA'S MS SMITH THE REQUEST FOR ETHANOLBASED OXYGENATED FUEL IS FRANKLY A MARKETING ISSUE THAT'S MAINLY BECAUSE MONTANA IS A BIG AGRICULTURAL STATE MOREOVER ETHANOL SUPPORTERS ARE SPREADING THE WORD THAT MTBE MIGHT BE DANGEROUS THERE VERY CLEARLY COULD BE A PROBLEM WITH MTBE SAYS MIKE BRYAN A SPOKESMAN FOR THE NATIONAL CORN GROWERS ASSOCIATION IN ST LOUIS THE COMMON STOCK OF THE NATION'S LARGEST ETHANOL PRODUCER ARCHERDANIELSMIDLAND CO RALLIED BRIEFLY LAST WEEK WHEN A SECURITIES ANALYST HIGHLIGHTED THE ILLNESSES ATTRIBUTED TO MTBE IN ALASKA ETHANOL HAS LONG STRUGGLED FOR ACCEPTANCE BY MOTORISTS AS THE CHIEF INGREDIENT OF GASOHOL DURING THE 1970S ETHANOL WAS VIEWED AS LITTLE MORE THAN A CHEAP TEMPORARY SUBSTITUTE FOR GASOLINE CARS ON GASOHOL JUST CHOKED TO A STOP SAYS JERRY LEVINE DIRECTOR OF CORPORATE STUDIES AT AMOCO CORP WHICH MAKES NO MTBE BUT BUYS IT FOR ITS GASOLINE HE SAYS MANY OF THE TECHNICAL PROBLEMS WITH ETHANOL HAVE BEEN SOLVED BY IMPROVING THE MIXTURE BUT PUBLIC ACCEPTANCE STILL LAGS MTBE IN CONTRAST IS GENERALLY CONSIDERED AN ENHANCER OF ENGINE PERFORMANCE IT HAS LONG BEEN USED AS 2 TO 3 OF SOME GASOLINE MIXTURES TO BOOST OCTANE LEVELS AT THAT LEVEL MTBE GASOLINE DOESN'T HAVE AN UNUSUAL ODOR BUT THE GASOLINE FORMULA TO REDUCE CARBON MONOXIDE IS 15 MTBE AND EPA OFFICIALS SAY THE HIGHER CONCENTRATION HAS A NOTICEABLY STRONGER SMELL CONSUMERS HAVE AN ECONOMIC MOTIVE TO COMPLAIN ABOUT MTBE TOO ADDING IT TO GASOLINE RAISED THE PUMP PRICE 14 CENTS A GALLON IN ALASKA LAST WINTER DESPITE EPA ASSURANCES THE INCREASE WOULD BE ONLY THREE TO FIVE CENTS GASOLINE CONTAINING ETHANOL COSTS ROUGHLY THE SAME AT THE PUMP AS MTBE ANGER OVER THE HIGHER PRICES CAUSED BY MTBE PRECEDED COMPLAINTS ABOUT IT AS A SOURCE OF ILLNESS SAY STATE ENVIRONMENTAL OFFICIALS IN ALASKA SEE RELATED LETTER WITH CLEANER GASOLINE WE'LL BREATHE EASIER WSJ APRIL 20 1993 9303050055 9304190187 930419 ETHYL'S NET ROSE 49 IN 1ST PERIOD ON GAINS BY ITS INSURANCE UNIT RICHMOND VA CHEMICAL PRODUCER ETHYL CORP SAID FIRSTQUARTER NET INCOME ROSE 49 BOOSTED BY INVESTMENT GAINS FROM ITS INSURANCE UNIT AND BECAUSE LAST YEAR'S EARNINGS WERE RESTATED TO REFLECT ACCOUNTING CHANGES ETHYL WHICH OWNS 80 OF INSURER FIRST COLONY CORP SAID PROFIT FOR THE QUARTER ROSE TO 719 MILLION OR 61 CENTS A SHARE FROM 483 MILLION OR 41 CENTS A SHARE A YEAR EARLIER THE YEAREARLIER FIGURE WAS RESTATED TO REFLECT A ONETIME CHARGE OF 144 MILLION OR 12 CENTS A SHARE FOR ACCOUNTING CHANGES FOR POSTRETIREMENT HEALTH BENEFITS AND DEFERRED INCOME TAXES ETHYL WHICH IN DECEMBER SOLD A 20 STAKE IN FIRST COLONY TO THE PUBLIC IN AN INITIAL STOCK OFFERING SAID ITS INTEREST IN THE INSURANCE UNIT CONTRIBUTED 456 MILLION OR 39 CENTS A SHARE TO FIRSTQUARTER EARNINGS A YEAR EARLIER WHEN ETHYL OWNED 100 OF THE UNIT IT CONTRIBUTED 368 MILLION OR 31 CENTS A SHARE TO EARNINGS THE COMPANY PLANS TO SPIN OFF ITS REMAINING FIRST COLONY STAKE TO SHAREHOLDERS LATER THIS YEAR FIRST COLONY IS BASED IN LYNCHBURG VA EXCLUDING THE CONTRIBUTIONS FROM INSURANCE EARNINGS ETHYL SAID ITS FIRSTQUARTER EARNINGS WERE 263 MILLION OR 22 CENTS A SHARE ESSENTIALLY EVEN WITH A YEAR EARLIER EXCLUDING THE NONRECURRING CHARGE FOR ITS ACCOUNTING CHANGES THE COMPANY SAID OPERATING RESULTS FROM ITS CHEMICAL OPERATIONS DECLINED BUT ADDED THAT ITS LONGRANGE OUTLOOK FOR THE CHEMICAL OPERATIONS REMAIN POSITIVE REVENUE FOR THE QUARTER ROSE 22 TO 829 MILLION FROM 6796 MILLION A YEAR EARLIER SEPARATELY FIRST COLONY SAID THAT NET INCOME CLIMBED TO 567 MILLION OR 115 A SHARE INCLUDING AFTERTAX REALIZED INVESTMENT GAINS OF 335 MILLION OR 68 CENTS A SHARE A YEAR EARLIER THE UNIT HAD NET INCOME OF 368 MILLION OR 75 CENTS A SHARE INCLUDING INVESTMENT GAINS OF 11 MILLION OR 22 CENTS A SHARE 9304190186 930419 MANAGEMENT BALDRIGE AWARDS MAY BE LOSING SOME LUSTER BY GILBERT FUCHSBERG STAFF REPORTER OF THE WALL STREET JOURNAL CORPORATE AMERICA'S HOTTEST COMPETITION IS COOLING OFF RAISING NEW QUESTIONS ABOUT ONE OF THE BIGGEST MANAGEMENT TRENDS OF THE LAST DECADE APPLICATIONS FOR THIS YEAR'S MALCOLM BALDRIGE NATIONAL QUALITY AWARDS DROPPED FOR THE SECOND CONSECUTIVE YEAR TO 76 COMPANIES THAT'S 16 LOWER THAN LAST YEAR'S TOTAL OF 90 AND 28 BELOW THE RECORD 106 COMPANIES THAT APPLIED IN 1991 THE COMMERCE DEPARTMENT WHICH ADMINISTERS THE AWARD AND RELEASED THE FIGURES LAST WEEK SAYS IT ISN'T CONCERNED ABOUT THE DECLINES SAYING AN INCREASE IN OTHER QUALITY CONTESTS IS DRAWING AWAY SOME POSSIBLE ENTRANTS FLAGGING INTEREST BUT SEVERAL MANAGEMENT EXPERTS SAY THE DROP REFLECTS GROWING SKEPTICISM ABOUT THE BALDRIGE AWARDS AND DIMINISHING INTEREST IN THE QUALITYMANAGEMENT MOVEMENT WHICH THOUSANDS OF COMPANIES HAVE EMBRACED IN A QUEST FOR BETTER RESULTS MANY COMPANIES HAVE VIEWED WINNING A BALDRIGE AWARD AS THE ULTIMATE GOAL OF THEIR QUALITY PROGRAMS THE LINK BETWEEN THE QUALITY PROCESS AND BUSINESS SUCCESS ISN'T AS CLEAR AS MANY PEOPLE FIRST ASSUME SAYS MAYNARD A HOWE A ST PAUL MINN MANAGEMENT CONSULTANT AND COAUTHOR OF A NEW BOOK ON THE QUALITY MOVEMENT AND THE NOTION THAT THE BALDRIGE AWARD IS GOING TO MAGICALLY HELP A COMPANY IS PRETTY DECEIVING THE DECLINE IN APPLICATIONS FOLLOWS THE WIDE CIRCULATION LAST YEAR OF SEVERAL MAJOR STUDIES THAT CAST DOUBT ON THE EFFECTIVENESS OF MANY POPULAR QUALITYIMPROVEMENT PRACTICES INCLUDING WORKER TEAMS AND BENCHMARKING OR EMULATING THE BEST IDEAS OF TOP COMPANIES THE STUDIES BY ACCOUNTING AND CONSULTING GIANT ERNST & YOUNG SUGGESTED THAT MANY COMPANIES HAVE WASTED MILLIONS OF DOLLARS PURSUING QUALITYBOOSTING STRATEGIES THAT DON'T IMPROVE PERFORMANCE AND MAY INSTEAD HAMPER IT AT THE SAME TIME THE DEMANDS OF PARTICIPATING IN THE BALDRIGE COMPETITION ARE DISCOURAGING SOME PROSPECTIVE APPLICANTS APPLICANTS TYPICALLY SPEND MONTHS GATHERING AND DOCUMENTING EVIDENCE OF THEIR QUALITY EFFORTS SEEKING TO MEET A DETAILED SET OF CRITERIA AND TO IMPRESS PANELS OF GOVERNMENTAPPOINTED REVIEWERS AND THE STANDARDS SHIFT A BIT EACH YEAR MAKING IT DIFFICULT EVEN FOR REPEAT APPLICANTS TO MASTER THE NECESSARY QUALIFICATIONS FOR WINNING NAMES OF APPLICANTS THAT DON'T WIN AREN'T DISCLOSED HOWEVER THREE COMPANIES KNOWN TO HAVE REACHED THE COMPETITION'S FINAL ROUND LAST YEAR THAT DIDN'T WIN CONSIDERED APPLYING AGAIN THIS YEAR BUT ULTIMATELY DECLINED AVIS INC THE GARDEN CITY NY CARRENTAL CONCERN HAD APPLIED FOR THE AWARD THREE TIMES AND REACHED THE FINAL ROUND TWICE BUT ITS 13000 EMPLOYEES VOTED 80 TO 20 NOT TO TRY HARDER THIS YEAR THERE'S NO REASON TO BELIEVE WE WOULDN'T HAVE GONE JUST AS FAR THIS YEAR BUT DO YOU HYPE EVERYBODY UP AND GO THROUGH THE SAME DISAPPOINTMENT SAYS RUSSELL L JAMES AN AVIS VICE PRESIDENT CAROLINA FREIGHT CORP A CHERRYVILLE NC TRUCKING COMPANY ALSO REACHED THE FINALS TWICE BUT DIDN'T APPLY FOR THE BALDRIGE THIS YEAR INSTEAD IT IS PURSUING A COMPLEX SET OF INTERNATIONAL QUALITY STANDARDS KNOWN AS ISO 9000 A SPOKESWOMAN SAYS MORE EUROPEAN COMPANIES ARE NOW DEMANDING THAT THEIR SUPPLIERS GAIN ISO 9000 CERTIFICATION MERCHANTS HOME DELIVERY INC OXNARD CALIF WHICH DELIVERS FURNITURE AND APPLIANCES FOR RETAILERS SAYS IT DIDN'T RECEIVE THE GOVERNMENT'S CRITIQUE OF ITS UNSUCCESSFUL 1992 APPLICATION EARLY ENOUGH TO MAKE IMPROVEMENTS FOR THIS YEAR'S CONTEST THE COMMERCE DEPARTMENT INITIALLY PROMISED TO SEND MERCHANTS THE REPORT IN LATE OCTOBER AFTER LAST YEAR'S WINNERS WERE ANNOUNCED THE COMPANY SAYS BUT IT DIDN'T RECEIVE A DRAFT UNTIL JANUARY AND THE FULL REPORT UNTIL LATE FEBRUARY JUST WEEKS BEFORE THIS YEAR'S APRIL 1 APPLICATION DEADLINE WE COULD HAVE RUSHED ONE IN BUT WE WOULDN'T HAVE BEEN ABLE TO CHANGE ANYTHING OF SUBSTANCE SAYS ROGER E PAYTON MERCHANTS' CHIEF EXECUTIVE OFFICER CURT REIMANN WHO DIRECTS THE AWARD AT THE COMMERCE DEPARTMENT SAYS THE AGENCY IS WORKING TO SPEED THE PROCESS FOR GETTING FEEDBACK REPORTS TO PAST APPLICANTS A TASK MADE COMPLEX BY THE ALLVOLUNTEER NATURE OF THE AWARD EXAMINERS WE CAN'T ORDER THEM TO WORK FASTER HE SAYS WE EMPHASIZE QUALITY OVER TIMELINESS DR REIMANN ATTRIBUTES THE DECLINE IN ENTRANTS LARGELY TO RAPID GROWTH IN CORPORATE QUALITY COMPETITIONS AT THE STATE AND LOCAL LEVEL THIS MAY HELP EXPLAIN IN PARTICULAR THE DROP IN APPLICATIONS THIS YEAR FROM SMALL COMPANIES TO 31 FROM 44 LAST YEAR HE SAYS FOR THEM RECOGNITION AT THAT LEVEL MAY MAKE MORE SENSE BECAUSE THEIR CLIENTS ARE LARGELY REGIONAL DR REIMANN SAYS NOTING THAT SEVERAL HUNDRED THOUSAND COPIES OF THIS YEAR'S BALDRIGE APPLICATION ARE IN CIRCULATION HE SAYS MANY COMPANIES ARE STILL EAGER TO EMBRACE QUALITY TECHNIQUES I THINK THE MOVEMENT CONTINUES TO GROW HE SAYS AS MANY AS SIX COMPANIES MAY WIN THE AWARD EACH YEAR TWO EACH IN THREE CATEGORIES MANUFACTURING SERVICE AND SMALL BUSINESS A TOTAL OF 17 COMPANIES HAVE WON SINCE THE COMPETITION STARTED IN 1988 9304190185 930419 LAB NOTES BY AMAL KUMAR NAJ SCIENTISTS HAVE DEVELOPED A PLASTIC THEY HOPE CAN REPLACE IVORY ON CONCERT PIANO KEYS IVORY IS NO LONGER AVAILABLE IN THE US BECAUSE OF A 1990 BAN ON ITS IMPORTATION THE BIGGEST CHALLENGE IN DEVELOPING SUBSTITUTES HAS BEEN CREATING A MATERIAL WITH THE PERFECT FEEL OF IVORY SAY RESEARCHERS AT RENSSELAER POLYTECHNIC INSTITUTE THE TEAM WORKING WITH STEINWAY & SONS FOUND THAT NO MATTER HOW CLOSE A NEW MATERIAL'S COMPOSITION HAS COME TO IVORY IT HAS HAD TWO FEEL PROBLEMS UNDER THE GLARE OF HOT CONCERT LIGHTS SWEATY FINGERS SLIP AND SLIDE IN SUBTLY DIFFERENT WAYS ON IVORY THAN ON PLASTICS THOUGH IMPERCEPTIBLE TO MOST THAT'S DISCORDANT TO CONCERT PIANISTS THE OTHER PROBLEM WAS SOMETHING DIFFERENT ABOUT THE FEEL THAT EVEN CONCERT PIANISTS COULDN'T ARTICULATE SAYS RENSSELAER'S SALVADORE CALABRESE WHO SPECIALIZES IN THE SCIENCE OF SLIDING SURFACES OR TRIBOLOGY THE RESEARCHERS SAY THEY EVENTUALLY FOUND THE REASONS IVORY KEYS FEEL DIFFERENT IVORY'S SURFACE CONTAINS A RANDOM SERIES OF FINE VALLEYS AND RIDGES THAT PREVENT FINGERTIPS FROM SLIPPING AND IVORY HAS RANDOM POROSITY THAT PREVENTS A BUILDUP OF OILS AND SWEAT TO DUPLICATE THE IRREGULAR RIDGES THE TEAM MADE A MOLD FROM AN IVORY PIANO KEY THEN CREATED A POROUS PLASTIC MATERIAL AND SHAPED PIANO KEYS IN THE MOLD SINCE PERFORMERS ARE KNOWN TO PREFER ONE PIANO'S IVORY KEYS OVER ANOTHER'S THE TEAM MADE A NUMBER OF MOLDS TO DUPLICATE DIFFERENT SURFACE VARIATIONS OF IVORY THE RESEARCHERS SAY STEINWAY HAS PLACED SEVERAL PIANOS WITH THESE NONIVORY KEYS IN CONCERT HALLS TO TEST IF PIANISTS CAN TELL THE DIFFERENCE RESEARCHERS HAVE FOUND A WAY TO ELIMINATE CARBON DEPOSITED ON FUEL NOZZLES IN ENGINES DURING COMBUSTION UNTIL NOW IT HAS BEEN NECESSARY TO CLEAN THE SOOTY COKE DEPOSITS FROM ENGINE PARTS DURING PERIODIC MAINTENANCE OF AUTOMOBILES AIRPLANES AND LOCOMOTIVES TO PREVENT A DROP IN ENGINE EFFICIENCY BUT IN LAB EXPERIMENTS GENERAL ELECTRIC SCIENTISTS HAVE ELIMINATED COKE FORMATION BY COATING THE NOZZLE WITH THE SAME METAL THAT COATS THE FILAMENT OF AN INCANDESCENT LIGHT BULB TANTALUM OXIDE THE SOLUTION APPEARS SIMPLE BUT FINDING IT REQUIRED YEARS OF PROBING SAYS GEORGE COFFINBERRY AN ENGINEER AT GE'S AIRCRAFT ENGINE UNIT HE SAYS THE KEY TO THE SOLUTION WAS DISCOVERING THAT THE COKE DEPOSIT ISN'T SIMPLY THE RESULT OF CHEMICAL REACTIONS IN COMBUSTION IT'S INSTIGATED BY THE SURFACE OF THE METAL IN INTENSE HEAT AS FUEL IS BROKEN UP INTO TINY FRAGMENTS ITS SULFUR REACTS WITH METAL ATOMS ON THE NOZZLE AND FORMS METAL SULFIDES THE GE TEAM FOUND THAT THE SULFIDES HAVE MICROCAVITIES THAT SET THE STAGE FOR COKE FORMATION SAYS MR COFFINBERRY NO ONE KNEW THAT BEFORE TO DISCOURAGE COKE FORMATION MR COFFINBERRY SAYS HE AND ANOTHER GE RESEARCHER JOHN ACKERMAN COATED THE METAL WITH A LAYER OF TANTALUM OXIDE ONLY HALF A MICRON THICK THEY CHOSE TANTALUM OXIDE BECAUSE IT SEALS THE SURFACE OF THE METAL TIGHT AND PREVENTS THE SULFUR FROM COMBINING WITH THE METAL MR COFFINBERRY SAYS THE TEAM PLANS MORE EXTENSIVE EXPERIMENTS THIS SUMMER UNIVERSITY OF ROCHESTER SCIENTISTS HAVE DEVELOPED A SPECIAL GLASS THAT CAN SUBSTANTIALLY REDUCE THE COST OF AN ENDOSCOPE POSSIBLY MAKING IT A DISPOSABLE OPTICAL INSTRUMENT ENDOSCOPES USED IN ADVANCED SURGERY SHOW A PATIENT'S INSIDES ON A TV MONITOR THE TUBULAR DEVICES FROM NINE INCHES TO A FOOT LONG CONTAIN A ROW OF TWO DOZEN OR MORE LENSES WHICH FOCUS INTO AN IMAGE THE DIFFERENT WAVELENGTHS PRODUCED BY BOUNCING LIGHT OFF AN ORGAN AN EXPENSIVE GRINDING AND POLISHING PROCESS GOES INTO MAKING THE LENSES AS A RESULT ENDOSCOPES COST 2000 TO 3000 SAYS DUNCAN T MOORE A RESEARCHER AND DIRECTOR OF ROCHESTER'S INSTITUTE OF OPTICS DR MOORE SAYS THE GLASS HIS TEAM DEVELOPED CAN REPLACE MOST OF THE LENSES IT'S A SOLID ROD OF GLASS THAT DOES WHAT TWO DOZEN SEPARATE LENSES DO LIGHT FROM THE ORGAN TRAVELS THROUGH THE LENGTH OF THE SOLID GLASS SLOWLY BENDING INTO FOCUS TO CREATE THE IMAGE THIS GRADIENTINDEX LENS IS MADE OF AN ORDINARY GLASS THAT'S IMPREGNATED WITH LITHIUM AND SODIUM IN A CERTAIN PROPORTION AND CONFIGURATION DR MOORE SAYS THE CHEMICALS ARE UNIQUE IN THAT THEY BEND THE LIGHT OF ALL WAVELENGTHS AT THE SAME TIME CREATING A HIGHRESOLUTION IMAGE HE SAYS AN ENDOSCOPE WITH THE NEW LENS WOULD COST LESS THAN 150 CHEAP ENOUGH NOT TO BE WORTH CLEANING WHILE METAL INSTRUMENTS CAN BE STERILIZED IN MINUTES IN HEAT OPTICAL INSTRUMENTS MUST BE SUBJECTED TO CHEMICAL TREATMENTS FOR AS LONG AS EIGHT HOURS IT IS NOT A GOOD SITUATION WHEN THE SCOPE COSTS A FEW THOUSAND DOLLARS HE SAYS EXCESSIVE LEVELS OF IODINE WHICH MAY CAUSE ANIMAL THYROID CANCER WERE FOUND IN CAT FOODS BY A TEAM AT THE UNIVERSITY OF MISSOURI AT COLUMBIA THE GROUP SAYS THE IODINE CONTENT WHICH ISN'T REQUIRED TO BE LISTED ON FOOD LABELS WAS 10 TO 60 TIMES THE RECOMMENDED LEVEL FOR CATS IODINE IS AN ESSENTIAL NUTRIENT IN THE DIET SO HIGH DOSES WERE THOUGHT TO BE HEALTHY THE RESEARCHERS SAID THEY CITED A SURVEY SHOWING THAT ONE IN 300 CATS IN NEW YORK CITY WAS BATTLING THYROID TUMORS THAT WOULD EQUAL 200000 CASES A YEAR OUT OF A CAT POPULATION OF 62 MILLION IN THE US THEY SAY A GROUP HAS DEVELOPED A NEW TECHNOLOGY FOR SNIFFING OUT EXPLOSIVES OR DRUGS CONCEALED IN A PACKAGE THE DEVICE DOES SO BY ANALYZING THE CHEMICAL SIGNATURE EMITTED BY THESE COMPOUNDS ALL KNOWN EXPLOSIVES FOR INSTANCE EMIT OXYGEN AND NITROGEN IN CERTAIN RATIOS AND DRUGS GIVE OFF CARBON AND OXYGEN IN CERTAIN RATIOS THE PORTABLE DEVICE SHOOTS FAST PULSES OF NEUTRONS INTO THE PACKAGE AND THEN ANALYZES THE RETURN RADIATION SIGNALS SAYS GEORGE VOURVOPOULOS ONE OF THE RESEARCHERS AND A PHYSICIST AT WESTERN KENTUCKY UNIVERSITY IN BOWLING GREEN 9304190184 930419 BUSINESS BRIEF HONEYWELL TO GET 70 MILLION TO SETTLE LITIGATION OVER PURCHASE OF SPERRY UNIT MINNEAPOLIS HONEYWELL INC SAID IT WILL RECEIVE 70 MILLION MUCH OF IT FROM UNISYS CORP AS PART OF A SETTLEMENT STEMMING FROM ITS PURCHASE OF THE SPERRY AEROSPACE GROUP IN 1986 AS PART OF THE AGREEMENT UNISYS BLUE BELL PA WILL MAKE A 432 MILLION PRETAX PAYMENT TO HONEYWELL OVER THE NEXT THREE YEARS THE REST OF THE SETTLEMENT WILL BE COVERED MOSTLY BY INSURANCE WITH THE REMAINDER COMING FROM SHEARSON LEHMAN BROTHERS INC A UNIT OF AMERICAN EXPRESS CO SHEARSON LEHMAN HUTTON THE PREDECESSOR TO SHEARSON LEHMAN BROTHERS ADVISED UNISYS IN ITS SALE OF SPERRY AEROSPACE HONEYWELL AN ELECTRONICS SYSTEMS AND COMPONENTS CONCERN SAID IT WOULD USE THE PAYMENT TO OFFSET LEGAL COSTS ASSOCIATED WITH THE DISPUTED PURCHASE AND REDUCE THE GOODWILL IT HAD RECORDED IN ASSOCIATION WITH THE ORIGINAL PURCHASE PRICE HONEYWELL FILED SUIT AGAINST UNISYS IN 1988 ALLEGING THAT UNISYS OVERSTATED THE ASSETS AND INCOME OF THE SPERRY AEROSPACE GROUP WHICH HONEYWELL BOUGHT IN DECEMBER 1986 FOR 103 BILLION UNISYS DENIED THE ALLEGATIONS THE SUIT SOUGHT 350 MILLION IN DAMAGES A HONEYWELL SPOKESMAN SAID THE SETTLEMENT CLEARS UP ALL LITIGATION WITH UNISYS STEMMING FROM ITS PURCHASE OF THE SPERRY UNIT AS A RESULT OF THE SETTLEMENT UNISYS A COMPUTER AND INFORMATION SERVICES COMPANY SAID IT WILL REPORT AN AFTERTAX EXTRAORDINARY CHARGE OF 264 MILLION FOR THE FIRST QUARTER UNISYS SAID THE CHARGE WILL NOT MATERIALLY AFFECT THE QUARTER'S RESULTS UNISYS SAID THE CHARGE WILL BE OFFSET BY A LARGERTHANEXPECTED NET GAIN FROM IMPLEMENTING ACCOUNTING CHANGES RELATED TO POSTRETIREMENT BENEFITS AND INCOME TAXES UNISYS PREVIOUSLY SAID IT EXPECTED TO TAKE A 170 MILLION CHARGE RELATED TO ACCOUNTING FOR POSTRETIREMENT BENEFITS AND RECORD A 325 MILLION TO 425 MILLION OFFSETTING GAIN FROM CHANGES IN INCOME TAX ACCOUNTING IN THE FIRST QUARTER OF 1992 UNISYS HAD NET INCOME OF 483 MILLION OR 11 CENTS A SHARE ON REVENUE OF 201 BILLION 9304190183 930419 HEARD ON THE STREET WRITEOFF ISSUE MAY IMPERIL SOME STOCKS BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ALTHOUGH APRIL 15 HAS COME AND GONE FOR SOME COMPANIES THE TAX NIGHTMARE MAY BE JUST BEGINNING AND THAT COULD SPELL NEW TROUBLE FOR SOME BIGNAME STOCKS A PENDING SUPREME COURT RULING IN A LONGSIMMERING TAX DISPUTE COULD END UP COSTING BUSINESSES BILLIONS OF DOLLARS IN BACK TAXES AND INTEREST IF THE DECISION EXPECTED AS EARLY AS THIS WEEK FAVORS THE INTERNAL REVENUE SERVICE SOME FASTGROWING COMPANIES MAY FACE COSTLY TAX DISPUTES THAT COULD DERAIL LONGTERM GROWTH PLANS AND UNDERMINE THEIR HIGHFLYING STOCKS AMONG THE COMPANIES EAGERLY AWAITING THE SUPREME COURT DECISION CHARLES SCHWAB FIRST USA AND UNITED ASSET MANAGEMENT THIS WILL BE ONE OF THE MOST IMPORTANT BUSINESS DECISIONS TO COME FROM THE SUPREME COURT SAID TAX EXPERT ROBERT WILLENS OF SHEARSON LEHMAN BROTHERS WHAT'S AT STAKE HERE IS COMPANIES' ABILITY AFTER AN ACQUISITION TO WRITE OFF OVER TIME OR DEPRECIATE ASSETS THAT REPRESENT THE VALUE OF A CONTINUING RELATIONSHIP WITH CUSTOMERS THESE SOCALLED CUSTOMERBASED INTANGIBLE ASSETS INCLUDE SUCH ITEMS AS CUSTOMER LISTS FOR BROKERAGE HOUSES SUBSCRIBER LISTS FOR PUBLICATIONS CREDITCARD LOANS FOR CARD ISSUERS AND CORE DEPOSITS IN THE CASE OF BANKS BY DEPRECIATING THESE ASSETS THE ACQUIRER GAINS A CONTINUING TAX BENEFIT THE GENERAL ACCOUNTING OFFICE ESTIMATED TWO YEARS AGO THAT COMPANIES DEPRECIATED SUCH ASSETS FOR TAX PURPOSES OVER EIGHT YEARS TOTALING MORE THAN 105 BILLION BUT IN ALL LIKELIHOOD THE AMOUNT IN QUESTION TODAY VASTLY EXCEEDS THAT IN THE CASE BEFORE THE SUPREME COURT NEWARK MORNING LEDGER CO ASCRIBED 67 MILLION OF THE 314 MILLION PAID FOR A NEWSPAPER CHAIN TO PAID SUBSCRIBERS PROJECTED INCOME FROM A LIST OF CURRENT SUBSCRIBERS BECAUSE SUCH INTANGIBLE ASSETS HAVEN'T HISTORICALLY BEEN DEDUCTIBLE THE IRS IN 1977 CHALLENGED THE BUYER NOW A UNIT OF THE NEWHOUSE FAMILY'S ADVANCE PUBLICATIONS SINCE THEN THE ISSUE HAS BECOME MORE IMPORTANT TO A GREATER NUMBER OF COMPANIES WHICH PAID HEFTY ACQUISITION PRICES OVER THE PAST DECADE AND NOW CARRY LOTS OF INTANGIBLE ASSETS ON THEIR BALANCE SHEETS SOME COMPANIES HAVE TRIED BROADENING THE DEFINITION OF INTANGIBLE ASSETS WITH USEFUL LIVES WHICH THUS CAN BE WRITTEN OFF FOR TAX PURPOSES OVER A PERIOD OF YEARS JUST AS QUICKLY THE IRS HAS CHALLENGED THEM WITH MIXED SUCCESS MANY OF THESE COMPANIES INCLUDING BRUNSWICK CHARLES SCHWAB AND INTERNATIONAL MULTIFOODS NOW FIND THEMSELVES ENMESHED IN TAX DISPUTES SIMILAR TO NEWARK'S THEY ALONG WITH A NUMBER OF PROFESSIONAL ORGANIZATIONS REPRESENTING NEWSPAPER AND MAGAZINE PUBLISHERS INSURANCE AGENTS AND FUEL DISTRIBUTORS HAVE FILED AMICUS BRIEFS WITH THE SUPREME COURT IN SUPPORT OF THE NEWSPAPER CHAIN CONSIDER THE AMOUNTS AT STAKE BRUNSWICK IS FIGHTING TO PRESERVE THE TAX DEDUCTIBILITY OF 500 MILLION IN ASSETS RELATED TO ACQUISITIONS IN 1985 AND 1986 SINCE 1985 THE BOAT MAKER HAS DEDUCTED MORE THAN HALF THE VALUE OF THOSE ASSETS NOW THE IRS IS CHALLENGING RETURNS FILED IN 1985 AND 1986 WHICH WOULD SUBSTANTIALLY INCREASE BRUNSWICK'S TAXES FROM THAT PERIOD THE COMPANY SAID IN ITS ANNUAL REPORT THAT IT INTENDS TO VIGOROUSLY CONTEST THE PROPOSED ADJUSTMENT THE STOCK CLOSED AT 14 1/2 UP 1/4 IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE THE STAKES ARE ALSO HIGH AT UNITED ASSET MANAGEMENT A MONEY MANAGEMENT COMPANY THAT HAS GROWN THROUGH ACQUISITIONS WHEN UAM BUYS AN INVESTMENT MANAGER MUCH OF THE PURCHASE PRICE IS ALLOCATED TO ADVISER CONTRACTS WHICH RUN ABOUT 14 YEARS ACCORDING TO ITS LATEST ANNUAL REPORT THE COMPANY HAS CONTRACTS VALUED AT 457 MILLION ON ITS BALANCE SHEET ALMOST 80 OF ITS ASSETS IN JANUARY 1992 THE IRS PROPOSED ADJUSTMENTS TOTALING 13 MILLION FOR THE COMPANY'S 1984 1985 AND 1986 FISCAL YEARS WHICH UAM IS CONTESTING AN ANALYST'S REPORT FROM SHEARSON LAST MONTH SAID THE COMPANY COULD POTENTIALLY FACE TAX PAYMENTS TOTALING 67 MILLION FOR BACK TAXES PLUS INTEREST IF THE GOVERNMENT WINS AND ITS ARGUMENTS ARE BROADLY APPLIED NOT ALL THESE TAX DISPUTES ARE AS DIRE CHARLES SCHWAB IS FIGHTING THE IRS OVER 28 MILLION IN ADDITIONAL TAXES THE GOVERNMENT WANTS TO COLLECT FOR THE DEPRECIATION OF CUSTOMER LISTS THAT THE COMPANY VALUED AFTER ITS 1987 BUYOUT FROM BANKAMERICA CORP THAT COULD COST 72 CENTS A SHARE FULLY DILUTED IN 1992 THE BROKERAGE COMPANY REPORTED EARNINGS OF 208 ON A FULLY DILUTED BASIS THE STOCK CLOSED FRIDAY AT 33 3/4 DOWN 1 3/8 IN BIG BOARD COMPOSITE TRADING EVEN COMPANIES THAT HAVE SO FAR ESCAPED THE IRS'S NOTICE COULD BECOME MIRED IN THESE KINDS OF TAX DISPUTES THIS ISSUE HAS COME UP OFTEN IN INITIAL PUBLIC OFFERINGS SAID DEAN EBERLING BANK ANALYST WITH SHEARSON LEHMAN YOU WOULDN'T WANT AS AN UNDERWRITER TO DO AN IPO AND HAVE A DECISION COME DOWN UNFAVORABLY AMONG THE YOUNG STOCKS THAT HAVE CUSTOMERBASED INTANGIBLES FIRST USA A CREDITCARD BANK THAT WAS A MERRILL LYNCH LEVERAGED BUYOUT AND THAT WENT PUBLIC LAST SPRING MERRILL LYNCH JUST COLED A SECOND STOCK OFFERING OF 4 MILLION SHARES AT 2725 FIRST USA HAS BEEN AN AVID ACQUIRER OF CREDITCARD PORTFOLIOS MUCH OF WHICH IT AMORTIZES OVER SEVEN TO 11 YEARS CUSTOMERBASED INTANGIBLES REACHED A HIGH IN 1990 OF 371 MILLION SINCE THEN THE COMPANY HAS WRITTEN OFF ROUGHLY 55 MILLION A YEAR AND CURRENTLY 257 MILLION OF THESE INTANGIBLES REMAIN ON ITS BOOKS THAT DWARFS THE COMPANY'S SHAREHOLDERS EQUITY WHICH STOOD AT 162 MILLION AT THE END OF 1992 THERE'S LITTLE IN THE COMPANY'S PUBLIC DOCUMENTS TO SUGGEST HOW MUCH IS AT STAKE FOR FIRST USA SHAREHOLDERS COMPANIES AREN'T OBLIGED TO DISCLOSE POTENTIAL TAX PROBLEMS UNTIL THE IRS INITIATES AN INQUIRY FIRST USA HASN'T HAD ANY SUCH INQUIRY BUT THE COMPANY INDICATED IN ITS RECENT PROSPECTUS THAT IT BELIEVES THE POTENTIAL TAX THREAT WOULDN'T BE MATERIAL NOT EVERYONE AGREES THIS COMPANY WOULD DEFINITELY BE AFFECTED BY A BROAD DECISION IN THE GOVERNMENT'S FAVOR SAID MR WILLENS OF SHEARSON ULTIMATELY THAT WOULD AFFECT FIRST USA'S BIGGEST SHAREHOLDERS THE LEVERAGED BUYOUT FUNDS THAT STILL OWN 33 OF THE STOCK AND SEVERAL PARTNERSHIPS OF SELECT MERRILL LYNCH EMPLOYEES THAT OWN ABOUT 9 A MERRILL LYNCH SPOKESWOMAN REFERRED ALL QUESTIONS TO THE FIRST USA WHICH POINTED TO ITS PROSPECTUS DISCLOSURE THE STOCK CLOSED AT 35 3/4 UNCHANGED IN FRIDAY'S COMPOSITE TRADING ON THE BIG BOARD TAX EXPERTS HOPE THE DECISION NO MATTER WHOM IT FAVORS WILL SETTLE CONFUSION GENERATED BY CONFLICTING LOWERCOURT RULINGS A DECISION FAVORABLE TO THE NEWARK PAPER COULD REVIVE LEGISLATION TO STANDARDIZE AMORTIZATION OF ALL INTANGIBLES AT 14 YEARS A PLAN THAT DIED IN CONGRESS LAST YEAR A WIN FOR THE GOVERNMENT WOULD LIKELY MAKE IT DIFFICULT FOR THAT LEGISLATION TO BE ADOPTED STILL IF THE SUPREME COURT DECISION IS NARROWLY WRITTEN IT MAY NOT LIFT THE CLOUD OF UNCERTAINTY OVER THIS AREA FOR SOME OF THESE STOCKS SAYS SHEARSON'S MR EBERLING 9304190182 930419 TECHNOLOGY & MEDICINE MERCK RELEASES ITS PROPOSAL ON LINKING ANNUAL PRICE BOOSTS TO INFLATION RATE BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MERCK & CO RELEASED A PROPOSAL CALLING FOR DRUG COMPANIES TO SIGN THREEYEAR LEGALLY BINDING CONTRACTS THAT TIE ANNUAL PRICE RISES TO THE INFLATION RATE IF ACCEPTED BY THE PHARMACEUTICAL INDUSTRY MERCK SAID THE PLAN WOULD REDUCE PRESCRIPTION DRUG SPENDING 7 BILLION TO 9 BILLION OVER THREE YEARS WITHOUT REQUIRING PRICECONTROL LEGISLATION THE PLAN IS ESSENTIALLY THE SAME PROPOSAL THAT MERCK HAS BEEN TRYING TO SELL TO THE WHITE HOUSE TASK FORCE ON HEALTHCARE REFORM AND WHICH WAS REPORTED ON IN THE WALL STREET JOURNAL LAST MONTH BY RELEASING DETAILS FRIDAY MERCK STEPPED UP THE PRESSURE ON THE INDUSTRY AND THE ADMINISTRATION TO ACCEPT OR REJECT THE PROPOSAL IN PRELIMINARY RESPONSES THE WHITE HOUSE AND SEVERAL MAJOR DRUG MAKERS SAID THE PLAN WAS BEING GIVEN SERIOUS CONSIDERATION HOWEVER SEVERAL BIG COMPANIES SAID THEY STILL RETAINED THEIR OWN NOTIONS ABOUT PRICING AND JOHNSON & JOHNSON SAID IT HAS BEEN CONDUCTING TALKS WITH THE TASK FORCE ON A PLAN OF ITS OWN FOR WHICH IT DECLINED TO RELEASE DETAILS OFFICIALS AT MERCK THE WORLD'S LARGEST PRESCRIPTION DRUG COMPANY WITH HEADQUARTERS IN WHITEHOUSE STATION NJ HAVE BEEN FRUSTRATED BY A LACK OF ACCORD BETWEEN THE INDUSTRY AND THE ADMINISTRATION UNCERTAINTY OVER WHAT THE GOVERNMENT WILL DO TO RESTRICT DRUG PRICES HAS MADE STOCK MARKET INVESTORS EDGY SHARPLY DRIVING DOWN COMPANY SHARE PRICES THE DRUG MAKERS ALSO HAVE BEEN UNABLE TO PLAN BUDGETS INDUSTRY OFFICIALS HAVE COMPLAINED UNDER ITS PLAN MERCK SUGGESTED THAT DRUG COMPANIES VOLUNTARILY LIMIT THE AVERAGE PRICE RISES OF EACH COMPANY'S PRESCRIPTION PRODUCT LINE TO THE ANNUAL CONSUMER PRICE INDEX MERCK ALSO SUGGESTED THAT NO INDIVIDUAL PRODUCT'S PRICE RISE HIGHER THAN ONE PERCENTAGE POINT ABOVE THE CPI TO ASSURE COMPLIANCE MERCK OFFERED TO HAVE COMPANY PRICES AUDITED BY AN INDEPENDENT ACCOUNTING FIRM MOREOVER MERCK SAID ANY COMPANY WITH PRICES IN EXCESS OF THE AGREED INCREASES WOULD ROLL BACK PRICES THE NEXT YEAR AND EXCESS REVENUE WOULD BE PAID INTO A GOVERNMENT FUND TO IMPROVE HEALTHCARE ACCESS FINALLY MERCK RELEASED A SAMPLE OF A THREEYEAR LEGALLY BINDING CONTRACT IT SUGGESTED EACH DRUG MAKER SIGN WITH THE GOVERNMENT'S DEPARTMENT OF HEALTH AND HUMAN SERVICES IN WHICH DETAILS OF THE PRICE AGREEMENT ARE SPELLED OUT MERCK'S CONTRACT ASKS THAT EACH COMPANY'S ANNUAL PRICES BE KEPT PRIVATE UNAVAILABLE FOR THE PUBLIC TO SEE MERCK'S CHAIRMAN AND CHIEF EXECUTIVE P ROY VAGELOS SAID THAT HE HAS LOBBIED FOR THE PROPOSAL IN WASHINGTON BUT THAT HE HAS YET TO GET A RESPONSE FROM THE WHITE HOUSE MERCK SAID IT HASN'T DISCUSSED THE IDEA WITH ITS COMPETITORS BECAUSE THE DRUG COMPANIES BELIEVE THEY ARE CONSTRAINED FROM SUCH DISCUSSIONS BY FEDERAL PRICEFIXING LAWS IF ACCEPTED THE PROPOSAL SHOULD PUSH DOWN DRUG PRICE INFLATION WHICH ROSE AT ABOUT TWO TO THREE TIMES THE RATE OF INFLATION FOR MUCH OF THE 1980S THE WHITE HOUSE HAS ATTACKED DRUG PRICES LARGELY BECAUSE PRESCRIPTION MEDICINES ARE THE BIGGEST HEALTH COSTS FOR MANY CONSUMERS WHO DON'T HAVE INSURANCE TO COVER DRUG BILLS OUR PROPOSAL WILL HELP ACHIEVE SAVINGS IN THE NEAR TERM AND THE CONTRACT MECHANISM WE ARE PROPOSING WILL HELP ASSURE COMPLIANCE WITH A VOLUNTARY APPROACH DR VAGELOS SAID ROBERT BOORSTIN A WHITE HOUSE SPOKESMAN SAID THE TASK FORCE STILL HADN'T REACHED A DECISION ABOUT HOW TO LIMIT DRUG PRICES BUT HE WENT OUT OF HIS WAY TO LAUD DR VAGELOS AND THE MERCK PLAN DR VAGELOS HAS ALWAYS BEEN CONCERNED WITH MAKING DRUGS AVAILABLE TO PEOPLE WHO NEED THEM HERE AT HOME AND AROUND THE WORLD MR BOORSTIN SAID IT'S NOT SURPRISING THAT HE IS TAKING THE LEAD IN DESIGNING A SERIOUS PROPOSAL ON PRICING OFFICIALS AT GLAXO INC THE US UNIT OF BRITISH DRUG MAKER GLAXO HOLDINGS PLC AND AT PFIZER INC AND ELI LILLY & CO SAID THEY AGREED WITH MAJOR PORTIONS OF MERCK'S PROPOSAL SPOKESPERSONS AT BRISTOLMYERS SQUIBB CO AND HOFFMANNLA ROCHE INC THE US UNIT OF ROCHE HOLDING AG OF SWITZERLAND SAID THEY COULDN'T COMMENT ON THE PLAN FOR FEAR OF VIOLATING ANTITRUST LAW A SPOKESMAN AT JOHNSON & JOHNSON SAID HIS COMPANY IS ENGAGING IN DISCUSSIONS WITH THE ADMINISTRATION REGARDING ITS OWN PLAN WE DON'T WANT TO COMMENT ON SPECIFIC PROPOSALS WHILE THOSE DISCUSSIONS ARE CONTINUING THE SPOKESMAN SAID 9304190181 930419 LEISURE & ARTS ON SPORTS HOUSTON'S TOWER OF POWER BY FREDERICK C KLEIN SEATTLE THE QUESTION OF WHETHER A BASICALLY ONEMAN TEAM CAN WIN A NATIONAL BASKETBALL ASSOCIATION CHAMPIONSHIP ALREADY HAS BEEN ANSWERED IN THE AFFIRMATIVE BY THE CHICAGO JORDANAIRES AKA THE BULLS NOW COME THE HOUSTON OLAJUWONS AKA THE ROCKETS TO EXPLORE THE ISSUE OF WHETHER IT CAN BE DONE WHEN THE MAN IN QUESTION IS SEVENFEET TALL AND MUSCULAR RATHER THAN 6FOOT6 AND SWIFT HAKEEM IS OLAJUWON'S FIRST NAME AND INTIMIDATION IS HIS GAME THE NATIVE OF NIGERIA A US CITIZEN SINCE APRIL 2 HAS SPENT THIS SEASON ALTERNATELY DEPOSITING BASKETBALLS INTO HOOPS FROM SHORT RANGE OR KNOCKING THEM AWAY WHEN OPPONENTS TRY TO DO THE SAME ON SATURDAY NIGHT HE DID BOTH AGAIN SCORING 21 AND REJECTING EIGHT WHILE HIS TEAM WAS BEATING THE SEATTLE SUPERSONICS 8681 YOU'RE ALWAYS AWARE OF HIM WHEN YOU TRY TO GET IN CLOSE AGAINST HOUSTON SAID RICKY PIERCE THE VETERAN SEATTLE GUARD HE MAKES YOU DO THINGS YOU DON'T ORDINARILY DO HE MAKES YOU DO THINGS YOU DON'T WANT TO DO THE MAIN THING THE SONICS DIDN'T WANT TO DO ON SATURDAY WAS LOSE BECAUSE THE DEFEAT IN A ROUGH AND RAGGED GAME THAT RATED AN A FOR EFFORT AND AN E FOR ARTFULNESS MEANT THEY PROBABLY WON'T HAVE THE HOME COURT ADVANTAGE SHOULD THE TWO TEAMS MEET IN THE SECOND ROUND OF THE PLAYOFFS WHICH BEGIN NEXT WEEK THE SQUADS ENRED THE CONTEST WITH IDENTICAL 52WIN 25LOSS RECORDS TIED FOR FOURTH BEST IN THE 27TEAM CIRCUIT AND THE ONEGAME EDGE WITH WHICH THE ROCKETS EMERGED LOOKED VERY LARGE WITH JUST FOUR GAMES LEFT IN THE REGULAR SEASON THE WIN MADE THE OLAJUWONLED ROCKETS LOOK LARGE TOO FROM A NUMBER OF STANDPOINTS ONE WAS THAT IT WAS HOUSTON'S NINTH STRAIGHT TRIUMPH THE LEAGUE'S LONGEST CURRENT WINNING STREAK ANOTHER WAS THAT IT WAS THE 26TH VICTORY IN THE LAST 30 OUTINGS FOR THE HOTTEST TEAM IN THE CAMPAIGN'S SECOND HALF WIN NO 53 SET A REGULARSEASON RECORD FOR THE FRANCHISE WHICH DATES FROM 196768 AND WAS A CHAMPIONSHIP FINALIST IN 1981 AND '86 AND IT WAS NO 1 IN FOUR TRIES THIS TERM AGAINST THE PESKY SONICS NOW THE ROCKETS HAVE DEFEATED EVERY CLUB IN THE LEAGUE OF ALL THOSE DISTINCTIONS HOUSTON COACH RUDY TOMJANOVICH LIKED THE LAST BEST BEATING THOSE GUYS IN THEIR BUILDING SHOWED WE CAN PLAY WITH ANYBODY WITH THE PLAYOFFS ALMOST HERE WE COULDN'T HAVE PICKED A BETTER TIME SAID HE GRATEFULLY SUCKING A POSTGAME CIGARETTE INDEED THE LINE BETWEEN PLAYOFF BASKETBALL AND A RUNOFTHEGYM REGULARSEASON CONTEST SOMETIMES BLURS AT THIS TIME OF YEAR AND BOTH TOMJANOVICH AND HIS SEATTLE COUNTERPART GEORGE KARL MADE NOTE OF THIS IN THEIR LOCKERROOM VALEDICTORIES THAT WAS BECAUSE OF THE TYPE OF SCRIMMAGE IT WAS ONE IN WHICH IN TYPICAL PLAYOFF STYLE THE PLAYERS SPENT AS MUCH TIME ROLLING AROUND THE FLOOR AFTER LOOSE BALLS AS SOARING ABOVE THE RIMS POSING FOR POSTER PHOTOS BOTH TEAMS' STOCKINTRADE IS DEFENSE WHICH IS ANOTHER WAY OF SAYING THAT WHOEVER DRAWS THEM IN THE POSTSEASON WILL HAVE THEIR HANDS AND UNIFORM SHIRTS FULL THAT INCLUDES THE PHOENIX SUNS THEY'RE THE WESTERN CONFERENCE'S BEST IN THE WONLOST COLUMN 6017 THROUGH SATURDAY BUT HAVE ONLY THREE WINS TO SHOW FOR THEIR SEVEN MEETINGS WITH HOUSTON AND SEATTLE SEATTLE'S DEFENSE IS GEARED TOWARD SWARMING THE BALL AND IS CARRIED OUT WITH HUMAN WAVES FEW COACHES SPREAD THE PLAYING TIME AS LIBERALLY AS KARL WITH EIGHT SONICS AVERAGING MORE THAN 20 MINUTES A GAME AND A NINTH NOT FAR OFF THAT MARK THEY TURN EVERY CONTEST INTO A SCRAMBLE AIMED AT BREAKING YOUR RHYTHMS THAT'S TOUGH TO HANDLE BECAUSE NO OTHER TEAM DOES IT QUITE THE WAY THEY DO TOMJANOVICH NOTES ADMIRINGLY THE DRAWBACK OF THAT SYSTEM IS AMID ALL THE LINEUP SWITCHING SEATTLE OFTEN FINDS ITSELF AT SEA OFFENSIVELY WITHOUT RELIABLE SCORING PATTERNS THAT'S GEORGE'S WAY AND IT'S UP TO US TO MAKE IT WORK EDDIE JOHNSON A VETERAN FORWARD SHRUGGED AFTER SATURDAY'S LOSS HOUSTON DOES THINGS DIFFERENTLY FUNNELING OPPOSING SHOOTERS INTO THE CENTER LANE WHERE OLAJUWON LURKS AND WHEN IT HAS THE BALL TRYING TO GET IT TO HIM IN CLOSE AT THE OPENING OF BUSINESS SATURDAY HE WAS FOURTH IN LEAGUE SCORING WITH A 26POINT AVERAGE THIRD IN REBOUNDING 13 PER GAME AND FIRST IN BLOCKED SHOTS 409 AND WAS PUNCHING THE PLAYINGTIME CLOCK AT NEARLY 40 MINUTES A GAME HE HAS YET TO MISS A CONTEST THIS SEASON THE LAST STAT MAY BE THE MOST SIGNIFICANT A NINEYEAR VET AND EIGHTTIME ALLSTAR HE WARRED WITH ROCKET MANAGEMENT LAST SEASON ONCE BEING SUSPENDED ON THE ACCUSATION OF FEIGNING INJURY A RECENTLY SIGNED FOURYEAR CONTRACT EXTENSION WHICH WILL KEEP HIM IN HOUSTON INTO 1999 CALMED THAT DISPUTE AND WHILE HE HAS TOLD INTERVIEWERS ONLY GOD CAN GIVE ONE PEACE OF MIND HE ADMITTED THAT THE MONEY HE WILL EARN WILL BE CONVENIENT HAKEEM HAS HELP OF COURSE GUARD KENNY SMITH IS A KEEN OUTSIDE SHOOTER VETERAN FORWARD OTIS THORPE IS BOTH DURABLE AND RELIABLE HE'D PLAYED IN 542 STRAIGHT GAMES BEFORE AN EARLYSEASON INJURY SIDELINED HIM FOR A FEW AND ROBERT HORRY A 6FOOT9 ROOKIE HAS BEEN A PLEASANT SURPRISE BUT OLAJUWON IS BOTH THE HOUSTON TOWER AND ITS ANCHOR THAT WAS APPARENT SATURDAY IN A GAME THAT PROCEEDED IN FITS AND STARTS SEATTLE LED BY SEVEN POINTS AT THE QUARTER 2316 AND NINE 4738 WITH TWO MINUTES LEFT IN THE FIRST HALF HOUSTON SCORED THE NEXT 15 POINTS AND THE SONICS THE 10 AFTER THAT A 141 HOUSTON RUN GAVE THE ROCKETS A SEEMINGLY SECURE FOURTHQUARTER LEAD 7566 ONLY TO HAVE THE SONICS SURGE AGAIN TO WITHIN TWO 7573 WITH FOUR MINUTES LEFT THE ROCKETS HELD ON BY SINKING THEIR FREE THROWS IN THE STRETCH SOMETHING THEY DIDN'T DO PREVIOUSLY THE SONICS SHOT POORLY FROM OUTSIDE AND OLAJUWON BATTED AWAY OR OTHERWISE DISCOURAGED MANY OF THEIR ATTEMPTS FROM IN CLOSE THE RESULT WAS A 34 SEATTLE SHOOTING AVERAGE A MARK THAT WOULDN'T LOOK GOOD IN A HIGH SCHOOL GAME YOU DON'T SHOOT WELL AGAINST HOUSTON YOU LOSE KARL SUMMARIZED ROCKET PLAYOFF FOES WILL NO DOUBT TAKE NOTE 9304190180 930419 WHO'S NEWS BURLINGTON NORTHERN INC BURLINGTON NORTHERN INC FORT WORTH TEXAS EDWARD E WHITACRE JR 51 YEARS OLD WAS NAMED TO THE 10MEMBER BOARD FILLING A VACANCY HE IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SOUTHWESTERN BELL CORP A REGIONAL BELL TELECOMMUNICATIONS COMPANY BURLINGTON IS A RAILROAD AND INFORMATION SERVICES COMPANY 9304190178 930419 TECHNOLOGY & MEDICINE GENENTECH REPORTS EARNINGS QUADRUPLED IN THE FIRST QUARTER SOUTH SAN FRANCISCO GENENTECH INC SAID FIRSTQUARTER PROFIT QUADRUPLED ON UNEXPECTEDLY STRONG SALES BUT INVESTORS REACTED COOLLY AMID UNCERTAINTY OVER THE IMMINENT RESULTS OF A TEST OF ITS HEARTATTACK DRUG THE BIOTECHNOLOGY INDUSTRY LEADER EARNED 143 MILLION OR 12 CENTS A SHARE COMPARED WITH 35 MILLION OR THREE CENTS A SHARE A YEAR EARLIER ANALYSTS HAD EXPECTED IT TO EARN FOUR CENTS A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY GENENTECH SHARES FELL 625 CENTS TO 33375 ROYALTY PAYMENTS AT 293 MILLION ALSO WERE HIGHER THAN EXPECTED IN PART BECAUSE OF DEMAND FOR GENENTECH'S HEPATITIS B VACCINE THE COMPANY NOW EXPECTS ROYALTIES TO HIT 110 MILLION IN THE YEAR UP FROM 100 MILLION PREVIOUSLY FORECAST AND 917 MILLION IN 1992 MEANWHILE GENENTECH IS AWAITING RESULTS OF A MAJOR TEST COMPARING THE EFFECTIVENESS OF ACTIVASE WITH STREPTOKINASE A MUCH CHEAPER ALTERNATIVE THE RESULTS ARE SET TO BE RELEASED APRIL 30 SEVERAL PREVIOUS STUDIES HAVE INDICATED THAT THE DRUGS WERE EQUALLY POWERFUL AND THAT CAUSED ACTIVASE'S SALES GROWTH TO FALTER GENENTECH OFFICIALS SAY THE TEST IS BEING CONDUCTED INDEPENDENTLY THOUGH IT'S BEARING MOST OF THE TEST COSTS IN ANY CASE THE RESULTS MAY NOT PUT THE DEBATE TO REST YOU ALWAYS HOPE THAT EVERYTHING IS BLACK AND WHITE BUT IT RARELY IS SAYS DENISE GILBERT AN ANALYST WITH SMITH BARNEY HARRIS UPHAM & CO THE COMPANY SAID SPENDING ON RESEARCH AND DEVELOPMENT ROSE 12 IN THE QUARTER PART OF THIS INCREASE REFLECTED THE RECENT REQUEST BY GENENTECH FOR REGULATORY APPROVAL TO MARKET A DRUG TREATMENT FOR CYSTIC FIBROSIS PATIENTS KNOWN AS DNASE OR PULMOZYME 9304190177 930419 REYNOLDS METALS FIRSTQUARTER LOSS TOPPED ESTIMATES BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL REYNOLDS METALS CO REPORTED A WORSETHANEXPECTED FIRSTQUARTER LOSS OF 327 MILLION OR 55 CENTS A SHARE REFLECTING A WORLDWIDE OVERSUPPLY OF ALUMINUM THE LOSS FOLLOWING ALUMINUM CO OF AMERICA'S REPORT OF A DISAPPOINTING FIRST QUARTER WAS NEARLY DOUBLE THE PERSHARE DEFICIT OF 29 CENTS PROJECTED BY ANALYSTS SOME OF WHOM HAD REVISED THEIR FORECASTS DOWNWARD IN RECENT DAYS THE ANNOUNCEMENT OF THE POOR RESULTS FOLLOWS RECENT COMPANY DISCLOSURES FILED WITH THE SECURITIES AND EXCHANGE COMMISSION THAT A HANDFUL OF SENIOR EXECUTIVES AT REYNOLDS SOLD SHARES PRIOR TO A SLIDE IN THE STOCK'S VALUE THE SEC FILINGS SHOW THAT SIX INSIDERS AT REYNOLDS SOLD 59808 SHARES IN LATE FEBRUARY AND EARLY MARCH AT PRICES RANGING FROM 5150 TO 5288 A SHARE THE STOCK CLOSED FRIDAY AT 45125 UP 375 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING AS THE MARKET APPARENTLY SHRUGGED OFF THE WEAK RESULTS TWO OF THE SELLERS WERE RECENTLY RETIRED EXECUTIVES DAVID C BILSING AND HARRY V HELTON BUT THE LARGEST SALE WAS MADE BY RANDOLPH N REYNOLDS THE COMPANY'S INTERNATIONAL VICE PRESIDENT WHO SOLD 17058 SHARES AT 5175 A SHARE ON FEB 24 SEC FILINGS SHOW MR REYNOLDS HAS 247357 SHARES LEFT THE COMPANY'S CHIEF FINANCIAL OFFICER HENRY S SAVEDGE JR SOLD 12000 SHARES OR NEARLY HALF HIS HOLDINGS AT 52 A SHARE A SPOKESWOMAN FOR REYNOLDS BASED IN RICHMOND VA SAID A SIGNIFICANT FACTOR IN THE EXECUTIVES' DECISION TO SELL THE SHARES WAS THEIR NEED TO PAY SUBSTANTIAL TAX LIABILITIES INCURRED WHEN AN INCENTIVE COMPENSATION PLAN WAS TERMINATED IN 1992 SHE SAID THE SALE HAD NOTHING TO DO WITH COMPANY OR MARKET CONDITIONS THE COMPANY SAID IT EXPECTS SOME IMPROVEMENT IN THE SECOND QUARTER COMPARED WITH THE FIRST BECAUSE OF SEASONALLY HIGHER DEMAND FOR CANS AND CAN SHEET IT DECLINED TO SAY WHETHER IT EXPECTS TO BE PROFITABLE WHILE SOME ANALYSTS EXPECT REYNOLDS TO SHOW A SECONDQUARTER PROFIT OF ABOUT 19 CENTS A SHARE PETER MERNER AN ANALYST WHO HEADS MERNER & ASSOCIATES SAID A SECONDQUARTER PROFIT IS QUESTIONABLE IF THINGS PERSIST THE WAY THEY HAVE BEEN THEY'RE GOING TO BE HARDPRESSED TO HAVE ENOUGH SEASONABLE BENEFIT TO MAKE IT UP HE SAID WITH LITTLE IMPROVEMENT LIKELY FOR THE REST OF THE YEAR MR MERNER SAID YOU'D HAVE TO CONCLUDE THERE WAS SOME JEOPARDY FOR REYNOLDS' 45CENT QUARTERLY DIVIDEND DUE TO BE DECLARED NEXT MONTH IN THE 1992 SECOND QUARTER REYNOLDS HAD A PROFIT OF 331 MILLION OR 56 CENTS A SHARE IN LAST YEAR'S FIRST QUARTER IT HAD A LOSS OF 6344 MILLION OR 1064 A SHARE AFTER A CHARGE FOR ACCOUNTING CHANGES EXCLUDING THE CHARGES IT HAD A PROFIT OF 52 MILLION OR NINE CENTS A SHARE ALEXANDRA PEERS CONTRIBUTED TO THIS ARTICLE 9304190176 930419 WHO'S NEWS PICCADILLY CAFETERIAS INC PICCADILLY CAFETERIAS INC BATON ROUGE LA JAMES W BENNETT PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS CAFETERIA CHAIN WAS NAMED CHAIRMAN SUCCEEDING OQ QUICK 73 YEARS OLD WHO WILL RETIRE JUNE 30 BUT REMAIN A DIRECTOR MR BENNETT 50 WILL REMAIN CHIEF EXECUTIVE OFFICER MALCOLM T STEIN JR 60 THE CURRENT CHIEF OPERATING OFFICER WILL ADD THE TITLE OF PRESIDENT 9304190175 930419 OPEN DIALOGUE SOUNDS LIKE FUN BUT FIRST WE'RE GOING TO A MOVIE BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL EARNIE DEAVENPORT WANTS HOLLYWOOD TO STOP BEATING UP HIS BUSINESS AS VICE CHAIRMAN OF THE CHEMICAL MANUFACTURERS ASSOCIATION PRESIDENT OF THE AMERICAN PLASTICS COUNCIL AND HEAD OF EASTMAN KODAK CO'S CHEMICAL UNIT MR DEAVENPORT IS MIFFED BY MOVIES SUCH AS TOXIC AVENGER AND TEENAGE MUTANT NINJA TURTLES WHICH DEPICT BEINGS WHO MUTATE AFTER EXPOSURE TO CHEMICALS IN TOXIC AVENGER THE HERO DECIDES TO AVENGE HIMSELF BY COMING AFTER GUYS LIKE EARNIE SAYS MR DEAVENPORT'S SPEECHWRITER RONALD J MCCALL EVEN BACKDRAFT IS SUSPECT HE SAYS BECAUSE IT'S BASED ON A HELLACIOUS CHEMICAL FIRE IN GENERAL THE MOVIES HAVE THE FEAR OF CHEMICALS AS AN UNDERLYING THEME MR DEAVENPORT SAID IN A SPEECH THURSDAY FOR PITTSBURGH CHEMICAL DAY AN ANNUAL TRADE FETE MR DEAVENPORT ADMITS HE HASN'T SEEN THE MOVIES BUT MR MCCALL BRINGS HIM UP TO SPEED ON THESE THINGS THESE MOVIES HELP SPREAD CHEMOPHOBIA OR AN IRRATIONAL FEAR OF CHEMICALS MR DEAVENPORT SAYS SYMPTOMS INCLUDE BELIEVING IN GLOBAL WARMING AND OBJECTING TO NUCLEAR POWER IT KIND OF PERMEATES OUR CULTURE TODAY HE SIGHS LLOYD KAUFMAN A COCREATOR OF TOXIC AVENGER SAYS MR DEAVENPORT HAS TOXIE ALL WRONG THE CHARACTER DOESN'T HATE CHEMICALS JUST THE ABUSE OF CHEMICALS AND OF PUBLIC TRUST MR KAUFMAN SAYS I'M SURE MR DEAVENPORT IS A GOOD MAN TOXIE WOULDN'T LAY A HAND ON HIM CHILDREN LOVE TOXIE BUT THEY'RE NOT GOING TO RESPOND TO A GUY IN A GRAY SUIT WHO COMPLAINS ABOUT MOVIES HE HASN'T SEEN MR DEAVENPORT SAYS HE DOESN'T WANT TO TAKE ON HOLLYWOOD BECAUSE NO ONE LIKES ANYONE WHO'S AGAINST EVERYTHING INSTEAD HE HOPES HIS INDUSTRY WILL PUT OUT CORRECT INFORMATION ABOUT ITS PRODUCTS BY INVOLVING THE PUBLIC MEDIA AND SCIENTIFIC COMMUNITY IN AN OPEN DIALOGUE HE ALSO URGES THAT CHEMICAL COMPANIES ALLOW ENVIRONMENTAL AUDITS BY OUTSIDE GROUPS KODAK DONATES SUPPLIES TO ONE BIG FILM GROUP THAT PUSHES ENVIRONMENTAL MESSAGES EARTH COMMUNICATIONS OFFICE AN ALLIANCE OF WRITERS ACTORS AND DIRECTORS THE GROUP SAYS IT WASN'T INVOLVED IN THE MOVIES MR DEAVENPORT CRITICIZES BUT IT GOT A LINE ABOUT DOLPHINSAFE TUNA INTO LETHAL WEAPON 2 A SPOKESMAN FOR MR DEAVENPORT SAYS IT'S NATURAL FOR KODAK TO SUPPORT A VARIETY OF MOVIE GROUPS THOUGH SOMETIMES YOU MAY NOT BE TOO PLEASED WITH WHAT YOU GET BACK 9304190174 930419 VORNADO RESCHEDULES MEETING SADDLE BROOK NJ VORNADO INC RESCHEDULED AGAIN THIS TIME TO MAY 6 FROM MAY 3 ITS SPECIAL MEETING TO CONVERT TO A REAL ESTATE INVESTMENT TRUST IN ADDITION VORNADO REALTY TRUST THE PLANNED NEW ENTITY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED PUBLIC OFFERING OF FIVE MILLION COMMON SHARES VORNADO A REAL ESTATE COMPANY WILL USE THE FUNDS IN PART TO PAY EXISTING SHAREHOLDERS A 336ASHARE DIVIDEND THE OFFERING AND THE PAYMENT WILL COMPLETE STEPS NECESSARY FOR VORNADO TO QUALIFY AS A REAL ESTATE INVESTMENT TRUST FOR FEDERAL INCOMETAX PURPOSES 9304190173 930419 GERMAN RETAIL SALES ROSE 12 WIESBADEN GERMANY RETAIL SALES ROSE 12 IN 1992 FROM 1991 THE FEDERAL STATISTICS OFFICE REPORTED FRIDAY EASTERN GERMAN SALES ROSE 17 WHILE WESTERN GERMAN SALES INCREASED 11 THE AGENCY SAID EASTERN GERMAN BRANCHES OF WESTERN GERMAN RETAILERS POSTED SALES GAINS OF ABOUT 25 THE FIGURES WEREN'T ADJUSTED FOR INFLATION 9304190172 930419 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 2 7/8 HIGH 2 5/8 LOW 2 3/4 NEAR CLOSING BID 2 7/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 306 30 TO 119 DAYS 307 120 TO 149 DAYS 308 150 TO 179 DAYS 310 180 TO 264 DAYS 317 265 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 313 30 DAYS 313 60 DAYS 315 90 DAYS CERTIFICATES OF DEPOSIT 261 ONE MONTH 265 TWO MONTHS 268 THREE MONTHS 278 SIX MONTHS 294 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 307 ONE MONTH 307 THREE MONTHS 313 SIX MONTHS BANKERS ACCEPTANCES 299 30 DAYS 299 60 DAYS 3 90 DAYS 302 120 DAYS 304 150 DAYS 305 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS3 3/16 3 1/16 ONE MONTH 3 3/16 3 1/16 TWO MONTHS 3 1/4 3 1/8 THREE MONTHS 3 1/4 3 1/8 FOUR MONTHS 3 5/16 3 3/16 FIVE MONTHS 3 5/16 3 3/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 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 INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 6 GERMANY 9 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY APRIL 12 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 289 13 WEEKS 3 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 719 60 DAYS 730 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 719 60 DAYS 729 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 495 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 274 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9304190171 930419 INTERNATIONAL DRUG WAR'S SUCCESS STRAINS BOLIVIA'S JAILS INMATES FEND FOR THEMSELVES AS THEY AWAIT JUSTICE BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL COCHABAMBA BOLIVIA IT'S NOT UNUSUAL FOR PEOPLE ACCUSED OF DRUG TRAFFICKING TO BE INVOLVED IN LAUNDERING LUISA CAMACHO DOES A DIFFERENT KIND OF WASHING AS SHE SERVES OUT A FIVEYEAR SENTENCE ON DRUG CHARGES IN THE SAN SEBASTIAN PRISON FOR WOMEN SHE AND FELLOW INMATES LAUNDER AND IRON CLOTHES THAT CUSTOMERS DROP OFF IT'S 50 CENTAVOS EIGHT CENTS PER ITEM MRS CAMACHO EXPLAINS AS SHE IRONS A PILE OF TSHIRTS IN THE COURTYARD IT'S READY IN TWO DAYS FOR MRS CAMACHO AND THE 100 OTHER WOMEN INMATES DOING LAUNDRY IS A MATTER OF SURVIVAL I DO THIS TO FEED MYSELF AND MY FAMILY SAYS THE 36YEAROLD MRS CAMACHO WHOSE THREE CHILDREN LIVE WITH HER IN THE JAIL PRISONERS AND THEIR DEPENDENTS HAVE TO PAY FOR FOOD THE SCENE IN THE COURTYARD OF SAN SEBASTIAN PRISON IS A NEW ASPECT OF BOLIVIA'S WAR ON DRUGS POINTING TO RISING DRUG SEIZURES AND DRUGRELATED ARRESTS PLUS DECLINING ACREAGE OF COCALEAF PRODUCTION US AND BOLIVIAN OFFICIALS SAY BOLIVIA UNLIKE PERU AND COLOMBIA CAN CLAIM PROGRESS IN THE DRUG WAR THOUGH IT HAS HARDLY PUT A DENT IN COCAINE EXPORTS BUT THIS SUCCESS IS PUTTING HUGE PRESSURE ON BOLIVIA'S JAILS AND HIGHLIGHTING WEAKNESSES IN BOLIVIA'S JUDICIARY WHAT'S THE POINT OF FIGHTING DRUG TRAFFICKING IF WE HAVE NO PLACE TO PUT THOSE WE ARREST ASKS JUDGE TOMAS MOLINA CESPEDES MOREOVER HE ADDS THERE ARE NO BIG FISH IN JAIL THEY'RE ALL POOR CAMPESINOS BECAUSE OF CORRUPTION THE REAL DELINQUENTS ARE FREED A TOUGH BOLIVIAN LAW AND THE SLOW WHEELS OF JUSTICE ADD TO PRISON OVERCROWDING UNDER A 1988 LAW PASSED AT US BEHEST THOSE SUSPECTED OF TRAFFICKING IN DRUGS OR CHEMICALS USED TO MANUFACTURE COCAINE ARE JAILED WITHOUT A CHANCE TO BE FREE WHILE AWAITING TRIAL CASES DRAG ON FOR YEARS JUDGE MOLINA SAYS 94 OF THOSE JAILED HERE ARE STILL AWAITING SENTENCING EVEN IF THEY ARE ACQUITTED DRUG SUSPECTS' CASES MUST BE REVIEWED BY THE SUPREME COURT BEFORE THEY CAN BE FREED THIS TAKES MONTHS OR EVEN YEARS THE PROBLEMS IN BOLIVIA'S JAILS CAME INTO SHARP RELIEF RECENTLY WHEN INMATES AT THE CHONCHOCORO PRISON OUTSIDE LA PAZ ALL BUT DESTROYED THE JAIL IN A MUTINY AGAINST PRISON CONDITIONS MOST OF THE PRISONERS' CLAIMS HAVE TO DO WITH THE SLOWNESS OF JUSTICE SAYS JUSTICE UNDERSECRETARY ALBERTO LUNA NOWHERE IS THE CHAOTIC PRISON SITUATION MORE EVIDENT THAN AT SAN SEBASTIAN PRISON FOR MEN IN COCHABAMBA BOLIVIA'S THIRDLARGEST CITY IN A JAIL ORIGINALLY DESIGNED FOR ABOUT 60 PEOPLE 502 INMATES TWOTHIRDS OF THEM ACCUSED ON DRUG CHARGES LIVE IN APPALLING CONDITIONS EVERY WEEK THERE ARE ABOUT 10 NEW INMATES COMING IN MOSTLY ON DRUG CHARGES WHILE ONE LEAVES SAYS CAPT JORGE FLORES THE WARDEN THE JAIL HAS THREE TOILETS AND FOUR SHOWERS ONLY TWO OF WHICH WORK FOR LACK OF SPACE PRISONERS HAVE BUILT WOODEN SHELVES INSIDE CELLS AS SLEEPING PLATFORMS IN ONE 3BY4FOOT CUBICLE 29YEAROLD LUIS MITA MAMANI LIVES WITH THREE OTHER MEN HE'S LUCKY COMPARED WITH 24YEAROLD JULIAN FLORES WHO FOR SEVEN MONTHS HAS BEEN SLEEPING ON THE FLOOR IN A HALLWAY USING THE BAG THAT CARRIES HIS FEW POSSESSIONS AS A PILLOW MANY OF THE PRISONERS HERE SAY THEY WERE TORTURED BY POLICE AND FORCED TO SIGN CONFESSIONS AND MANY ALSO SAY THEY WERE ASKED TO PAY BRIBES TO BE FREED ALMOST ALL OF US ARE HERE BECAUSE WE HAVE NO MONEY SAYS 40YEAROLD LUCIO VARGAS WHO IS SERVING A SIXYEAR SENTENCE ON WHAT HE CLAIMS ARE TRUMPEDUP DRUG CHARGES HE AGREED TO UNDER TORTURE IN SAN SEBASTIAN JAIL EVERYTHING IS FOR SALE FROM CELLS TO FOOD I DON'T SO MUCH RUN A PRISON AS A CLOSED MARKET SAYS CAPT FLORES MR VARGAS FOR INSTANCE BOUGHT HIS CELL FROM A FELLOW PRISONER FOR 400 BY PRISON STANDARDS HE HAS FIVESTAR ACCOMMODATION A TV A FAN AND A LARGE ROOM HE RENTS OUT PART OF THE SPACE TO TWO PRISONERS WHO PAY HIM EITHER IN MONEY OR IN WORK HELPING HIM MAKE BOOKSHELVES AND LAMPS HE SELLS TO BUY FOOD THE INMATE WHO SOLD MR VARGAS HIS CELL 33YEAROLD TOMAS MAMANI USED THE PROCEEDS TO OPEN UP A SMALL STALL IN THE PRISON COURTYARD TO SELL FOOD CIGARETTES AND FRUIT JUICES HE IS HELPED BY HIS WIFE FRANCY RODRIGUEZ WHO LIKE OTHER FAMILY MEMBERS IS ALLOWED TO STAY IN THE JAIL WITH HER HUSBAND ELSEWHERE IN THE COURTYARD PRISONERS MAKE FURNITURE OUT OF WOODEN CRATES OR JEWELRY OUT OF MEAT BONES THEIR WARES ARE DISPLAYED OUTSIDE THE JAIL AND WHEN AN INTERESTED BUYER APPEARS A GUARD CALLS THE PRODUCT'S MAKER TO THE DOOR TO BARGAIN WITH HIS CUSTOMER ONE PRISONER ZENON ROSALES WHO'S SERVING A HOMICIDE SENTENCE MAKES WOODEN BILLY CLUBS FOR THE POLICE I MAKE 20 A DAY HE SAYS THE COLONEL SAYS I WORK WELL AND MY ORDERS ARE ON TIME ANOTHER INMATE RICARDO ESCOBAR CALIZAYA IS ALLOWED OUT EVERY DAY TO SELL ICES ON THE SQUARE IN FRONT OF SAN SEBASTIAN HE WAS GRANTED THIS FAVOR BECAUSE OF HIS UNUSUAL SITUATION ACCUSED IN FEBRUARY 1989 OF TRANSPORTING CHEMICALS USED TO MAKE COCAINE HE HAS BEEN CLEARED BY TWO COURTS BUT THE SUPREME COURT STILL HASN'T EXAMINED HIS CASE SO HE CAN'T BE FREED MR ESCOBAR CONCEDES HE COULD ESCAPE BUT DOESN'T WANT HIS GUARDS TO THINK BADLY OF HIM AFTER ALL I'M A PRISONER HE SAYS THERE ARE SEVERAL UNEXPECTED PRISONERS ONE IS OSCAR FLORES A MEMBER OF BOLIVIA'S ANTIDRUG POLICE WHO CLAIMS HIS SUPERIORS INVENTED CHARGES OF LINKS TO DRUG TRAFFICKERS BECAUSE HE WAS PREPARING TO DENOUNCE THEIR CORRUPT TIES A LOT OF COLONELS SHOULD BE HERE HE SAYS BUT PERHAPS THE MOST UNUSUAL PRISONER IS AN AMERICAN 45YEAROLD CHARLES HENRY WHO HAS BEEN IMPRISONED FOR TWO MONTHS ON WHAT HE SAYS ARE TRUMPEDUP FRAUD CHARGES LINKED TO A BULK PURCHASE OF AIRPLANE TICKETS FOR HIS DENVER TRAVEL BUSINESS MR HENRY IS PHILOSOPHICAL ABOUT HIS PLIGHT I ACCEPT THESE THINGS AS PART OF DOING BUSINESS ABROAD HE SAYS THOUGH FELLOW INMATES INITIALLY THOUGHT HE WAS AN AGENT OF THE DRUG ENFORCEMENT AGENCY MR HENRY'S EFFORTS TO REPAINT THE JAIL AND ORGANIZE SPORTS TOURNAMENTS HAS GAINED HIM RESPECT HE MAKES LIGHT OF HIS SITUATION SAYING WHERE ELSE IN THE WORLD CAN YOU GET A FRESHLY SQUEEZED GLASS OF ORANGE JUICE FOR 10 CENTS BUT MR HENRY KNOWS HE IS FORTUNATE BECAUSE US AUTHORITIES ARE WORKING FOR HIM AND HE'S NOT HERE ON DRUG CHARGES HE COULD SOON BE OUT 9304190170 930419 TAESA ACCUSES RIVAL AEROVIAS DE MEXICO OF SMEAR CAMPAIGN MEXICO CITY AEROVIAS DE MEXICO SA'S PUBLIC RELATIONS AGENTS HAVE BEEN CIRCULATING A LETTER POTENTIALLY DAMAGING TO RIVAL MEXICAN AIRLINE TAESA IN WHAT TAESA OFFICIALS CLAIM IS A CALCULATED CAMPAIGN TO SABOTAGE ITS BUSINESS THE CORRESPONDENCE BETWEEN TAESA PRESIDENT ALBERTO ABED AND GPA GROUP PLC WHICH LEASES AIRCRAFT TO THE MEXICAN CARRIER OUTLINES ARREARS OF 8 MILLION IN TAESA'S PAYMENTS TO GPA AND THREATENS THE REPOSSESSION OF AIRCRAFT ON LEASE A COPY OF THE LETTER WAS OBTAINED BY DOW JONES & CO PUBLISHER OF THIS NEWSPAPER TAESA'S FULL COMPANY NAME IS TRANSPORTES AEREOS EJECUTIVOS SA OVER THE PAST TWO WEEKS AEROMEXICO'S NEW YORK PUBLIC RELATIONS FIRM GEORGESON & CO INC HAS BEEN FAXING A COPY OF THE MARCH 30 LETTER TO AIRLINE ANALYSTS IN THE US AND MEXICO GEORGESON AGENT BRIAN MADDOX CONFIRMED HAVING SENT OUT THE LETTER BUT INSISTED AEROMEXICO HAD NO KNOWLEDGE OF HIS ACTIONS HE SAID HE FIRST LEARNED OF THE LETTER FROM A COLUMN IN A PROMINENT MEXICO FINANCIAL DAILY AND SUBSEQUENTLY RECEIVED A FAXED COPY OF THE LETTER ANONYMOUSLY BUT TAESA'S MR ABED SAYS AEROMEXICO HAS LAUNCHED A SMEAR CAMPAIGN AGAINST HIS COMPANY IN RETALIATION FOR TAESA'S GAINS IN MARKET SHARE AND ITS AGGRESSIVE PRICING POLICIES AEROMEXICO IS TRYING TO DAMAGE OUR IMAGE SAID MR ABED IN AN INTERVIEW THE COMPETITION AND AGGRESSIVENESS OF OUR COMPANY BOTHERS THEM AND THEY WANT TO INJURE OUR REPUTATION AEROMEXICO OFFICIALS DIDN'T RETURN SEVERAL CALLS SEEKING COMMENT MR ABED SAYS ALL PAYMENTS TO GPA ARE UP TO DATE THOUGH HE WOULDN'T DISCUSS THE GPA LETTER A GPA OFFICIAL REQUESTING ANONYMITY CONFIRMED THE LETTER'S AUTHENTICITY THOUGH HE WOULDN'T DISCUSS TAESA'S CURRENT PAYMENT POSITION HE DID SAY HOWEVER THAT GPA CONTINUES TO WORK CLOSELY WITH TAESA AND NOW HAS NO INTENTION OF REPOSSESSING TAESA'S PLANES 9304190169 930419 LETTERS TO THE EDITOR WE CAN FEEL THE BIAS IN OUR BONES IN RESPONSE TO YOUR MARCH 18 PAGEONE ARTICLE A NEW MARKET CHIROPRACTORS SEEKING TO EXPAND PRACTICES TAKE AIM AT CHILDREN IT SOUNDS TO ME AS IF YOU ARE ATTEMPTING TO ASSIST THE MEDICAL PROFESSION IN PROTECTING ITS TURF IS IT A MARKETING SCAM WHEN CHIROPRACTORS ATTEMPT TO EXTEND THEIR CARE TO THEIR PATIENTS' CHILDREN IN AN EFFORT TO BEGIN PREVENTIVE CARE OR HELP A CHILD'S HEALTH CONDITION WITHOUT MEDICATION LET'S LOOK AT THE ADULT POPULATION WITH ALL THE MONEY SPENT ON HEALTH CARE WHY ARE HEART DISEASE CANCER AND DIABETES STILL AMONG THE LEADING CAUSES OF DEATH IN THE US THE POPULATION HAS THE SOPHISTICATED DIAGNOSTIC AND SURGICAL PROCEDURES AT ITS DISPOSAL TO TREAT ILLNESS WHAT IS CAUSING THESE DISEASES A BETTER QUESTION WOULD BE WHAT COULD BE DONE TO PREVENT SUCH ILLNESS AND THE ENORMOUS DRAIN ON HEALTH CARE COSTS CERTAINLY NOT ALL ILLNESS CAN BE PREVENTED WITH PROPER DIET SPINAL HEALTH CARE EXERCISE NUTRITIONAL SUPPLEMENTATION AND STRESS REDUCTION HOWEVER THE POINT IS THAT WE NEED TO FOCUS MORE ON THE ROOT CAUSE OF THE ILLNESS AND ATTEMPT TO TREAT THE CAUSE NOT THE ILLNESS SHOULDN'T A DOCTOR'S JOB BE TO HELP AND PREVENT AN INDIVIDUAL FROM REACHING A POINT WHERE THE ONLY RESORT IS OPENHEART SURGERY CHEMOTHERAPY RADIATION DIALYSIS INSULIN INJECTIONS HYSTERECTOMY SPINAL SURGERY ETC NUMEROUS CHIROPRACTIC PHYSICIANS INCLUDING MYSELF PRACTICE PREVENTIVE HEALTH CARE AND YES THE EDUCATION STARTS AT A YOUNG AGE BY EDUCATING PARENTS AND CHILDREN ABOUT PREVENTIVE CARE CHIROPRACTORS ACROSS THE COUNTRY ARE DOING THEIR PART TO PREVENT ILLNESS AND LOWER MEDICAL EXPENDITURES OBVIOUSLY THERE IS A POTENTIALLY LARGE ECONOMIC IMPACT THAT PREVENTIVE CHIROPRACTIC CARE COULD HAVE ON MDS AND DRUG MANUFACTURERS' CASH FLOW I CAN'T HELP BUT THINK THAT THIS IS THE DRIVING FORCE BEHIND YOUR ARTICLE NOT THE CONCERN OF CHILDREN'S HEALTH AND WELFARE YOUR ARTICLE ANGERED ME MY ANGER WAS NOT DIRECTED SO MUCH AT YOU AS AT SOME OF MY COLLEAGUES WHO IF CORRECTLY QUOTED ARE OUT OF THE MAINSTREAM OF SCIENTIFIC CHIROPRACTIC CHIROPRATIC STUDENTS IN COLLEGES AND UNIVERSITIES ACCREDITED BY THE COMMISSION ON ACCREDITATION OF THE COUNCIL ON CHIROPRACTIC EDUCATION ARE NOT TAUGHT TO WITHHOLD ANTIBIOTIC THERAPY AND SUBSTITUTE SPINAL MANIPULATION IF AFTER APPROPRIATE DIAGNOSIS IT IS CLEAR THE PATIENT CHILD OR ADULT REQUIRES TREATMENT WITH ANTIBIOTICS ALL DOCTORS KNOW THAT THERE ARE DEGREES OF INFECTION AND THAT CERTAIN KINDS OF INFECTION AND CERTAIN TYPES OF PATHOGENIC ORGANISMS CAN OVERWHELM THE NATURAL DEFENSES OF THE BODY BEFORE THIS HAPPENS THE DOCTOR WILL ALWAYS PLACE THE WELFARE OF THE PATIENT FIRST AND WILL EITHER PROVIDE THE APPROPRIATE THERAPY OR IN THE INSTANCE OF THE CHIROPRACTIC DOCTOR DEALING WITH SUCH AN INFECTION REFER THE PATIENT FOR APPROPRIATE THERAPY YOUR ARTICLE RELATES INSTANCES IN WHICH MARKETING SEMINARS FOR CHIROPRACTIC PHYSICIANS ARE USED INAPPROPRIATELY TO ENCOURAGE CHILDREN TO BECOME CHIROPRACTIC PATIENTS ANY SEMINAR PROGRAM OR PROCEDURE USED TO EXPLOIT PATIENTS IS DESPICABLE REGARDLESS OF WHETHER IT OCCURS IN THE CHIROPRACTIC PROFESSION THE LOCAL ALLOPATH'S OFFICE OR THE HOSPITAL THIS IS NOT TO SAY OR SUGGEST THAT CHILDREN CANNOT OFTEN BENEFIT FROM CHIROPRACTIC CARE YES SOME CHIROPRACTIC PROCEDURES HAVE YET TO ENJOY THE SUPPORT OF CAREFUL SCIENTIFIC RESEARCH THIS IS NO LESS TRUE OF ALLOPATHIC MEDICINE THE HUMAN BODY IS AN AMAZINGLY COMPLEX ORGANISM AND NO SINGLE HEALTH CARE PROFESSION HAS ALL THE ANSWERS IT IS IMPERATIVE THEREFORE THAT THE CHIROPRACTIC AND ALLOPATHIC PROFESSIONS BEGIN TO WORK IN CONCERT RATHER THAN IN CONFRONTATION AND PERHAPS ALL DOCTORS SHOULD BE REMINDED AS OFTEN AS POSSIBLE THAT THE PATIENT MUST ALWAYS COME FIRST IN EVERY PROFESSION YOU WILL FIND THOSE WHO CHOOSE TO PRACTICE BEYOND THE ESTABLISHED NORM IN FACT MOST ADVANCES IN MEDICINE ARE ALSO DISCOVERED IN JUST THIS WAY IE RADIOKARITOTOMY CORONARY BYPASS ETC THE UNIVERSITY LABORATORY SETTING IS OFTEN THE LAST PLACE THESE PROCEDURES ARE PROVED NEVERTHELESS THIS IS CONSIDERED THE CUTTING EDGE OF MEDICAL PROGRESS I PARTICULARLY TAKE EXCEPTION TO YOUR COMMENT THAT CHIROPRACTIC IS FUNDAMENTALLY A 19THCENTURY PHILOSOPHY WEARING THE WHITE SMOCK OF A SCIENCE THE CHIROPRACTIC MANUAL METHODOLOGY IS WELL DOCUMENTED BEYOND THE FIRST CENTURY WITH A FIRM FOUNDATION IN EARLY CHINESE GREEK ROMAN AND EVEN EGYPTIAN PRACTICES OF CARE AND ASSESSMENT OF INJURY AND ILLNESS THE CURRENT CONSTRUCT OF CHIROPRACTIC PHILOSOPHY HAS EVOLVED NO DIFFERENTLY THAN THAT OF MEDICINE OR OSTEOPATHY IN FACT THE EARLY RURAL MEDICAL TRAINING IN THIS COUNTRY WAS PRIMARILY A SELFLEARNED APPRENTICESHIP WHERE A YOUNG DOCTORINTRAINING WOULD ACCOMPANY HIS MENTOR USUALLY A BARBER AND BONE SETTER BY HORSE AND BUGGY ON APPOINTED ROUNDS TO NEIGHBORING FARMS AND VILLAGES WHEN THE MENTOR FELT THE APPRENTICE HAD LEARNED AND SEEN ENOUGH DEATH AND DISEASE HE HAD THE AUTHORITY TO ORDAIN HIS PUPIL A PHYSICIAN IF YOU WERE TO TAKE A PURIST HISTORICAL VIEW YOU WOULD FIND LITTLE RESEMBLANCE BETWEEN THE PHYSICIAN HIPPOCRATES AND THE CURRENT PRACTICE OF MEDICINE THE SCIENCE AND PRACTICE OF CHIROPRACTIC IS PERHAPS THE ONLY DISCIPLINE THAT STILL ADHERES FAITHFULLY TO THE HIPPOCRATIC OATH I WILL NOT GIVE A HARMFUL OR ABORTIVE DRUG OR REMEDY I WILL NOT USE THE KNIFE NOT EVEN ON SUFFERERS OF STONE BUT WILL WITHDRAW IN FAVOR OF SUCH MEN WHO ARE ENGAGED IN THIS WORK THE BASIC CANON OF CHIROPRACTIC CARE FOR THE PAST 100 YEARS IS AGAIN HIPPOCRATIC FIRST DO NO HARM THE GROCER AND FISH VENDOR DD PALMER MENTIONED IN YOUR ARTICLE WAS PERHAPS THE FIRST TO POSTULATE THE SUBLUXATION THEORY HOWEVER HE WAS ALSO AMONG THE FIRST TO ADVOCATE THE TEACHING OF REGULAR EXERCISE PROPER DIET STRESS REDUCTION EARLY MOBILIZATION FOLLOWING INJURY AND ILLNESS AND MODIFYING NEGATIVE WORK HABITS ALL THESE SOUND COUNSELING TOOLS WERE ONCE ALSO CONSIDERED MEDICALLY UNPROVEN UNTIL SUPPORTED BY UNIVERSITY BASED MEDICAL RESEARCH 9304190168 930419 WHO'S NEWS BRINKER INTERNATIONAL INC BRINKER INTERNATIONAL INC DALLAS ROGER F THOMSON 44 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT GENERAL COUNSEL AND CORPORATE SECRETARY OF THIS RESTAURANT CHAIN MR THOMSON SUCCEEDS ROBERT CALLOWAY 35 WHO RESIGNED TO PURSUE OTHER INTERESTS THE COMPANY SAID MR THOMSON WAS SENIOR VICE PRESIDENT AND GENERAL COUNSEL OF BURGER KING CORP 9304190167 930419 POLITICS & POLICY REACTING TO FALL OF BOSNIAN ENCLAVE WHITE HOUSE DEBATES MILITARY MOVES BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ANGERED BY THE FALL OF THE BESIEGED MUSLIM TOWN OF SREBRENICA THE CLINTON ADMINISTRATION IS AGAIN DEBATING WHETHER TO USE LIMITED MILITARY FORCE TO CONTAIN SERBIAN AGGRESSION IN BOSNIA MOREOVER THE ADMINISTRATION HAS BEGUN DISCUSSING MORE AGGRESSIVE OPTIONS WITH ITS CLOSEST EUROPEAN ALLIES PRESIDENT CLINTON'S TOP FOREIGN POLICY ADVISERS MET SATURDAY TO REVIEW OPTIONS INCLUDING LIFTING THE ARMS EMBARGO AGAINST BOSNIA AND INITIATING AIR STRIKES AGAINST SERBIAN SUPPLY LINES ARTILLERY AND MILITARY BASES OFFICIALS ALSO STUDIED A PROPOSAL TO CREATE SAFE HAVENS FOR BOSNIAN MUSLIMS PROTECTED BY WESTERN AIR POWER NO DECISIONS WERE MADE BUT THE MILITARY OPTIONS WERE CLEARLY HIGHER UP ON THE LIST THAN THEY'VE BEEN SAID A SENIOR US OFFICIAL THE OFFICIAL ALSO SAID THAT THE US WOULDN'T ACT ALONE AND THAT ANY MORE AGGRESSIVE ACTION IF TAKEN WOULD HAVE TO BE POSTPONED UNTIL AFTER THE APRIL 25 REFERENDUM ON RUSSIAN PRESIDENT BORIS YELTSIN'S RULE THE ADMINISTRATION HAS DEBATED AND DISCARDED MILITARY OPTIONS IN THE PAST MAINLY BECAUSE OF OPPOSITION FROM THE PENTAGON AND ITS EUROPEAN ALLIES WHETHER PRESIDENT CLINTON WOULD NOW DECIDE TO TAKE MORE AGGRESSIVE ACTION AND WHETHER SUCH ACTION WOULD COME SOON ENOUGH TO SALVAGE ANY OF EASTERN BOSNIA FROM THE SERBS IS UNCLEAR A CEASEFIRE NEGOTIATED BY THE UNITED NATIONS APPEARED YESTERDAY TO HALT THE FIGHTING AROUND SREBRENICA ONE OF THE LAST MUSLIM ENCLAVES IN EASTERN BOSNIA AND UN HELICOPTERS BEGAN TO EVACUATE THE CRITICALLY WOUNDED BUT THE DEAL ALL AGREED REPRESENTS A DE FACTO MUSLIM SURRENDER AS PART OF THE DEAL MUSLIM FIGHTERS MUST SURRENDER THEIR WEAPONS TO CANADIAN PEACEKEEPERS WHO ARE CHARGED WITH DEMILITARIZING THE TOWN SREBRENICA'S THOUSANDS OF MUSLIM RESIDENTS ARE NOW EXPECTED TO FLEE THE SURRENDER OF SREBRENICA HAS ALSO SHOCKED AMERICA'S EUROPEAN ALLIES AND US OFFICIALS SAID IN RECENT DAYS THAT THEY HAVE DETECTED A NEW ATTITUDE AMONG THE EUROPEANS FOR MORE FORCEFUL ACTION YESTERDAY MR CLINTON SPENT 50 MINUTES ON THE PHONE DISCUSSING BOSNIA WITH BRITISH PRIME MINISTER JOHN MAJOR AIDES TO PRESIDENT CLINTON SAID HE EXPECTS TO HAVE A SIMILAR CONVERSATION SOON WITH FRENCH PRESIDENT FRANCOIS MITTERRAND IN THE PAST BRITAIN AND FRANCE HAVE OPPOSED LIFTING THE ARMS EMBARGO OR THE USE OF AIR STRIKES ARGUING THAT SUCH ACTIONS WOULD ENDANGER THEIR PEACEKEEPING TROOPS ON THE GROUND INCREASE THE KILLING AND OBSTRUCT THE DELIVERY OF HUMANITARIAN AID SENIOR US MILITARY OFFICERS MEANWHILE HAVE ARGUED THAT GIVEN BOSNIA'S MOUNTAINOUS TERRAIN AIR STRIKES WOULDN'T BE ABLE TO TAKE OUT ENOUGH SERBIAN ARTILLERY OR SUPPLY LINES TO JUSTIFY THE RISK BUT THE RELENTLESS AGGRESSION BY THE BOSNIAN SERBS AND THE SUFFERING OF THE MUSLIMS HAS MADE EVEN BAD OPTIONS SUDDENLY LOOK GOOD SAID FRUSTRATED US OFFICIALS POLITICAL OPINION IN THE US MAY ALSO BE MOVING IN FAVOR OF MORE AGGRESSIVE ACTION IN AN APPEARANCE YESTERDAY ON NBCTV'S MEET THE PRESS SENATE MAJORITY LEADER GEORGE MITCHELL AND SENATE MINORITY LEADER ROBERT DOLE BOTH CALLED FOR LIFTING THE ARMS EMBARGO ON BOSNIA AS WELL AS AIR STRIKES AGAINST SERBIAN POSITIONS BOTH INSISTED HOWEVER THAT THE US NOT ACT ALONE ALL WE'RE DOING IS STANDING BY WHILE THE SERBS MOP UP BOSNIA DIVIDE IT INTO 11 DIFFERENT PIECES AND SLAUGHTER THE WOMEN AND CHILDREN MR DOLE SAID SREBRENICA'S FALL ALSO PROMPTED THE UN SECURITY COUNCIL SATURDAY TO PASS A RESOLUTION TIGHTENING TRADE SANCTIONS ON SERBIA EARLIER LAST WEEK THE SECURITY COUNCIL ACCEDED TO A REQUEST BY RUSSIA TO POSTPONE THE VOTE UNTIL AFTER THE RUSSIAN REFERENDUM BUT THE NEW SERBIAN OFFENSIVE PERSUADED THE COUNCIL IT HAD TO MOVE REACTING ANGRILY TO THE UN VOTE THE LEADER OF THE BOSNIAN SERBS RADOVAN KARADZIC DECLARED THAT THE SERBS WOULD PULL OUT OF UNBROKERED PEACE NEGOTIATIONS MR KARADZIC HAS MADE SIMILAR THREATS IN THE PAST AND THEN REVERSED HIMSELF BOSNIA'S MUSLIMS AND CROATS HAVE ALREADY SIGNED ON TO THE PEACE AGREEMENT BUT OFFICIALS OF THE MUSLIMLED GOVERNMENT SAID THEY COULD REVOKE THEIR SIGNATURE IF THE SERBIAN OFFENSIVE IS ALLOWED TO CONTINUE UNCHECKED 9304190166 930419 SOUTHDOWN AGREES TO EXPAND ITS BOARD TO ACCOMMODATE BLUM GROUP'S SLATE BY ANDREA GERLIN STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON SOUTHDOWN INC REACHED AN AGREEMENT TO EXPAND ITS BOARD AND END A BITTER PROXY FIGHT WITH ITS LARGEST SHAREHOLDER THE SETTLEMENT OF THE DISPUTE CALLS FOR THE CEMENT AND CONCRETE PRODUCTS MAKER TO INCREASE ITS BOARD TO 12 MEMBERS FROM NINE MAKING ROOM FOR THE COMPANY'S NOMINEES FOR THREE BOARD SEATS UP FOR ELECTION AT THE MAY 20 ANNUAL MEETING AS WELL AS A SLATE NOMINATED BY RICHARD C BLUM & ASSOCIATES A SAN FRANCISCO INVESTMENT FIRM THAT CONTROLS A 147 STAKE IN SOUTHDOWN OWNED BY THE CARPENTERS PENSION TRUST FOR SOUTHERN CALIFORNIA SOUTHDOWN AND THE BLUM GROUP HAVE BEEN WAGING A WAR OF WORDS OVER THE COMPANY'S CONDITION AND WHICH WAS BETTER SUITED TO MANAGE IT THE DISPUTE CAME TO A HEAD EARLIER THIS MONTH AFTER THE COMPANY DROPPED THE SHAREHOLDER GROUP'S LONE REPRESENTATIVE ON THE BOARD RONALD N TUTOR AND FILED SUIT CLAIMING THAT THE BLUM GROUP HADN'T PROPERLY DISCLOSED ITS INTENTION TO SEIZE CONTROL OF THE COMPANY BLUM GROUP HAS DENIED IT IS SEEKING CONTROL OF SOUTHDOWN A SPOKESMAN FOR THE SHAREHOLDER GROUP SAID HE EXPECTS THAT THE SUIT WILL BE DROPPED ON APRIL 9 THE BLUM GROUP OFFERED ITS OWN SLATE OF NOMINEES CHARGING THAT MANAGEMENT HAD RUN THE COMPANY POORLY AND BEEN OVERLY GENEROUS WITH MANAGEMENT PERKS THE COMPANY'S SLATE OF NOMINEES CONSISTS OF G WALTER LOEWENBAUM II SOUTHDOWN'S CHAIRMAN MICHAEL A NICOLAIS A CURRENT DIRECTOR AND AN OFFICER OF GOLDMAN CAPITAL MANAGEMENT INC A NEW YORK INVESTMENT FIRM AND FRANK J RYAN THE FORMER PRESIDENT OF AIR PRODUCTS & CHEMICALS INC AN INDUSTRIAL GAS SUPPLIER BASED IN ALLENTOWN PA THE BLUM SLATE CONSISTS OF MR TUTOR THE COCHAIRMAN OF THE PENSION TRUST'S BOARD AND CURRENTLY A SOUTHDOWN DIRECTOR ROBERT J SLATER THE FORMER CHAIRMAN OF MEDUSA CORP A CEMENT MAKER BASED IN CLEVELAND HEIGHTS OHIO AND STEVEN WOLITZER A MANAGING DIRECTOR OF LEHMAN BROTHERS MR WOLITZER REPLACES STEPHEN B ORESMAN A FORMER PARTNER OF THE MANAGEMENT CONSULTING FIRM BOOZ ALLEN & HAMILTON INC ON THE BLUM SLATE NEITHER SIDE WOULD COMMENT ON WHY MR ORESMAN WAS REPLACED BUT A SPOKESMAN FOR THE SHAREHOLDER GROUP SAID MR WOLITZER WAS SOMEONE BOTH SIDES COULD AGREE ON THE COMPANY DIDN'T COMMENT ON WHETHER MR LOEWENBAUM WOULD REMAIN AS CHAIRMAN MR LOEWENBAUM'S SALARY AS CHAIRMAN AND THE COMPANY'S PAYMENT OF FEES TO HIS INVESTMENT FIRM HAVE BEEN CRITICIZED BY THE BLUM GROUP THE SPOKESMAN FOR THE SHAREHOLDER GROUP SAID THE NEW BOARD WILL DECIDE WHO WILL BE ITS NEXT CHAIRMAN IN ITS NEWS RELEASE HOWEVER SOUTHDOWN SAID THAT FIVE OF THE SIX DIRECTORS TO BE ELECTED UNDER THE SETTLEMENT ALL EXCEPT MR LOEWENBAUM WILL BE NAMED TO THE BOARD'S NOMINATING COMMITTEE 9304190165 930419 WHO'S NEWS ENRON CORP ENRON CORP HOUSTON TERENCE H THORN WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT GOVERNMENT AFFAIRS AND PUBLIC POLICY AND DEBORAH A MACDONALD WAS NAMED PRESIDENT OF TRANSWESTERN PIPELINE CO A UNIT OF ENRON A NATURAL GAS COMPANY MS MACDONALD SUCCEEDS MR THORN AS PRESIDENT OF THE PIPELINE SHE WAS FORMERLY VICE PRESIDENT AND GENERAL COUNSEL OF ENRON'S INTERSTATE PIPELINES 9304190164 930419 FOREIGN EXCHANGE AS GERMAN RATES FALL TRADERS SELL MARKS BUT MANY AVOID BUYING DOLLARS BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE SLOW BUT INEXORABLE DECLINE IN GERMAN INTEREST RATES IS PROMPTING CURRENCY PLAYERS TO SELL MARKS BUT INSTEAD OF BUYING DOLLARS MANY ARE BUYING YEN POUNDS AND SWISS AND FRENCH FRANCS GERMAN RATES HAVE FURTHER TO FALL THAN MANY OF THEIR EUROPEAN COUNTERPARTS ANALYSTS SAY THAT SHOULD KEEP PRESSURE ON THE MARK AND OFF THE EXCHANGE RATE MECHANISM OF EUROPE'S MONETARY SYSTEM AND RECENT GAINS IN JAPANESE STOCKS AND A BELIEF THAT JAPAN WILL ACCEPT A STRONGER YEN TO FORESTALL A PROTECTIONIST ASSAULT ON ITS TRADE SURPLUS SHOULD HELP THE YEN GAIN AGAINST THE MARK AS WELL AS THE DOLLAR THE ANALYSTS SAY BUT DEALERS MAY NOT SELL MARKS FOR DOLLARS AS CONFIDENTLY AS THEY SELL MARKS FOR OTHER CURRENCIES THAT'S BECAUSE OF THE INTERESTRATE GAP BETWEEN GERMANY AND THE US 468 PERCENTAGE POINTS FOR THREEMONTH RATES AND THE MURKY OUTLOOK FOR THE US ECONOMY SAYS SANDY BATTEN SENIOR ECONOMIST AT CITIBANK AT THE SAME TIME MARKET PLAYERS WON'T KNOW FOR MONTHS WHAT ECONOMIC POLICY CHANGES WILL EMERGE FROM THE CLINTON ADMINISTRATION IT'S JUST NOT CLEAR THAT FOREIGN INVESTORS WILL WANT TO PUT FUNDS INTO THE US WITH THE UNCERTAINTY ABOUT THE POSSIBILITY OF A FISCAL DRAG ON THE ECONOMY SAYS MR BATTEN LATE FRIDAY IN NEW YORK THE DOLLAR TRADED AT 16175 MARKS AND 11230 YEN COMPARED WITH 16055 MARKS AND 11310 YEN LATE THURSDAY AT MIDDAY MONDAY IN TOKYO THE DOLLAR HAD FALLEN TO 16126 MARKS AND 11102 YEN SINCE THE BEGINNING OF THIS MONTH THE DOLLAR HAS TRADED CHOPPILY BETWEEN 15750 MARKS AND 162 MARKS BUT THE MARK HAS DECLINED FAIRLY STEADILY AGAINST YEN POUNDS FRENCH AND SWISS FRANCS BARRING A POLITICAL SURPRISE SUCH AS ANOTHER DANISH REJECTION OF THE MAASTRICHT TREATY ON EUROPEAN UNION ON MAY 18 ANALYSTS EXPECT THE DECLINE TO CONTINUE THE DEUTSCHE MARK LOOKS WEAK AGAINST ALL THE CURRENCIES SAYS KEITH HAZLEY CHIEF TRADER AT GAIACORP IRELAND LTD BUT FURTHER DECLINES WILL BE A BIT MORE SELECTIVE ON A STRICTLY TECHNICAL BASIS THE SWISS FRANC HAS GAINED ABOUT AS MUCH GROUND AS IT'S GOING TO MR HAZLEY SAYS STERLING ON THE OTHER HAND HAS MORE ROOM TO ADVANCE STRONG INDUSTRIALPRODUCTION FIGURES RELEASED LAST WEEK SUGGEST THAT THE BRITISH ECONOMY MAY BE TURNING AROUND ANALYSTS SAY WE HAVE PROBABLY SEEN OR ARE SEEING THE BOTTOM OF RATES IN THE UK AS THEIR ECONOMY EXHIBITS MORE SIGNS OF RECOVERY SAYS CITIBANK'S MR BATTEN THAT TREND IS LIKELY TO BRING STERLING TO 250 MARKS OVER THE NEXT THREE MONTHS FROM 24648 MARKS LATE FRIDAY IN NEW YORK SAYS MICHAEL O'HANLON SENIOR INTERNATIONAL ECONOMIST AT KIDDER PEABODY & CO LONDON THE MARK'S BROAD DECLINE SHOULD HELP RESTORE CALM TO THE EXCHANGE RATE MECHANISM OF THE EUROPEAN MONETARY SYSTEM MARKET PLAYERS WILL BE PARTICULARLY ENCOURAGED IF THE DEUTSCHE BUNDESBANK CUTS ITS LOMBARD RATE AT THURSDAY'S MEETING OF ITS POLICYMAKING CENTRAL COUNCIL MR O'HANLON SAYS THE LOMBARD RATE IS WHAT THE CENTRAL BANK CHARGES FOR COLLATERALIZED SUPPLEMENTAL BORROWINGS IT SERVES AS A CEILING ON MONEYMARKET RATES ALTHOUGH MARKET RATES ARE BELOW THE LOMBARD CEILING THE RATE CARRIES PSYCHOLOGICAL CLOUT IN EUROPE HE SAYS IF THE LOMBARD RATE IS REDUCED THAT'S A VERY GOOD SIGNAL THAT THE BUNDESBANK IS MORE COMFORTABLE WITH THE GERMAN INFLATION OUTLOOK AND MORE DISTRESSED WITH THE ECONOMIC OUTLOOK HE SAYS THE BUNDESBANK MAY BE MORE CONCERNED ABOUT GERMANY'S RECESSION THAN SOME MARKET PLAYERS GIVE IT CREDIT FOR HE SAYS THAT'S BECAUSE THE ECONOMIC DOWNTURN MAY FOIL THE CENTRAL BANK'S EFFORTS TO KEEP INFLATION DOWN HIGHER SOCIALSERVICE EXPENDITURES AND LOWER TAX REVENUE COULD PRODUCE A STRUCTURAL BUDGET DEFICIT HE NOTES SUCH A DEFICIT WOULD BOOST LONGTERM INTEREST RATES DISCOURAGING THE PRIVATE SECTOR FROM HELPING TO FUND THE COSTS OF UNIFICATION THOSE COSTS HAVE PLAYED A LARGE PART IN THE INFLATIONARY PRESSURES THAT FORCED THE BUNDESBANK TO KEEP RATES HIGH THE MARK WILL PICK UP IF RATES REMAIN UNCHANGED THIS WEEK MR O'HANLON PREDICTS BUT EXPECTATIONS OF A RATE CUT WILL QUICKLY REEMERGE AS MARKET PLAYERS TURN THEIR ATTENTION TO THE CENTRAL COUNCIL MEETING TWO WEEKS LATER HE SAYS 9304190163 930419 FRANC THE ERM APPEAR HEADED FOR BETTER DAYS POSITIVE ECONOMIC OUTLOOK FUEL ENTHUSIASM OF EXCHANGE MARKET BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON NOW THAT THE BATTLE OVER THE FRENCH FRANC SEEMS TO HAVE BEEN WON WITHOUT SO MUCH AS A DROP OF BLOOD SHED SUDDENLY IT'S SAFE TO BE BULLISH ON EUROPE'S EXCHANGERATE MECHANISM IN GENERAL AND FRANCE'S CURRENCY IN PARTICULAR DIRE PREDICTIONS THIS YEAR ABOUT THE EXCHANGERATE MECHANISM'S IMMINENT COLLAPSE AND A FLOATING FRANC HAVE FADED INTO THE COLLECTIVE UNCONSCIOUS OF THE FOREIGNEXCHANGE MARKET WHICH IS NOT KNOWN FOR POSSESSING A PARTICULARLY GOOD LONGTERM MEMORY LAST TUESDAY COULD WELL GO DOWN AS VDAY FOR THE FRENCH ECONOMICS MINISTRY AND THE BANK OF FRANCE THEY CUT REPURCHASE RATES TWO PERCENTAGE POINTS AND THE FRANC ACTUALLY ROSE AGAINST THE MARK THE GERMAN CURRENCY FELL THROUGH THE 338FRANC LEVEL LAST WEEK FOR THE FIRST TIME SINCE EARLY JANUARY TALK CURRENTLY EVEN AMONG THE HITHERTO DUBIOUS ANGLOSAXON FINANCIAL COMMUNITY IS OF THE FRANC BECOMING ONE OF THE ERM'S ANCHOR CURRENCIES THE EXCHANGERATE MECHANISM ITSELF SEEMS ALMOST CERTAIN TO SURVIVE DESPITE THE BUNDESBANK'S RELUCTANCE TO LOWER INTEREST RATES QUICKLY DENMARK'S SECOND REFERENDUM ON THE MAASTRICHT TREATY ON GREATER EC UNITY COULD GIVE THE MARKETS A NASTY FEELING OF DEJA VU BUT EVEN A SECOND REJECTION PROBABLY WOULDN'T ROIL THE NOW FIRM ERM CORE OF GERMANY FRANCE THE NETHERLANDS AND BELGIUM WHAT HAS CHANGED SINCE THE CURRENCY CRISIS ERUPTED LAST YEAR IS THE NOTION THAT DEVALUATIONS ARE TANTAMOUNT TO NATIONAL HUMILIATION EC FINANCE MINISTERS MADE IT CLEAR LAST WEEK THAT THE ERM WITH OR WITHOUT THE MAASTRICHT TREATY WON'T BE RADICALLY REDESIGNED BECAUSE THEY BELIEVE ITS STRUCTURE ALREADY ALLOWS FOR PERIODIC ADJUSTMENTS READ DEVALUATIONS WHILE THE FRENCH FRANC IS NO LONGER CONSIDERED A LIKELY CANDIDATE FOR SUCH AN ADJUSTMENT THE MARKET CONSENSUS SEEMS TO BE GROWING INEXORABLY IN FAVOR OF THE SPANISH PESETA BEING DEVALUED ANOTHER 5 OR SO AND PROBABLY THE PORTUGUESE ESCUDO ALONG WITH IT THE SPANISH ECONOMY IS UNBELIEVABLY WEAK SAYS IAN GUNNER AN ECONOMIST AT CHASE MANHATTAN BANK LTD THE ONLY WAY TO LOWER RATES IS ANOTHER DEVALUATION SUCH A MOVE IS LIKELY TO COME SHORTLY AFTER THE GENERAL ELECTION SCHEDULED FOR JUNE 6 MEANTIME ANY FURTHER SIGNS OF WEAKENING SUPPORT FOR SOCIALIST PRIME MINISTER FELIPE GONZALEZ WILL ALMOST CERTAINLY HURT THE PESETA NEVERTHELESS THERE ARE RELATIVE SUCCESS STORIES IN THE ERM THIS YEAR NOTABLY THE IRISH POUND OR PUNT WHICH HAS RESPONDED WELL FOLLOWING ITS 10 DEVALUATION IN JANUARY THE CENTRAL BANK OF IRELAND WAS ABLE TO CUT ITS SHORTTERM FACILITY RATE TO 9 FROM 95 WITH ONLY A SLIGHT WEAKENING OF THE IRISH POUND VERSUS THE MARK IN ANY CASE THE MAIN ERM EVENT IS STILL THE FRANC VERSUS THE MARK WHERE SENTIMENT LOOKS TO BE CROSSING OVER RAPIDLY UNCERTAINTY REMOVED ALL THE UNCERTAINTY OVER THE FRANC HAS BEEN REMOVED SAYS KLAUS HOLSCHUH AN ECONOMIST AT COMMERZBANK IN FRANKFURT WITH THAT OUT OF THE WAY AND THE BANQUE DE FRANCE SOON TO BE INDEPENDENT MONEY MANAGERS CLEARLY PREFER FRENCH MARKETS OVER MOST OTHERS HE ADDS FUELING THE OPTIMISM ARE THE VASTLY BRIGHTER PROSPECTS OF THE FRENCH ECONOMY OVER GERMANY THIS YEAR AND NEXT FORECASTS ON EVERY MAJOR INDICATOR EXCEPT UNEMPLOYMENT ARE MORE OPTIMISTIC FOR THE WESTERN SIDE OF THE RHINE AND THE FACT THAT FRANCE'S JOBLESS RATE IS WORSE THAN GERMANY'S IS SOMETHING THE FRENCH ARE WELL ACCUSTOMED TO MOST IMPORTANTLY FRENCH GROSS DOMESTIC PRODUCT IS FORECAST TO EKE OUT 03 GROWTH THIS YEAR WHILE THE GERMAN ECONOMY IS LIKELY TO SHRINK BY 13 CONSUMER PRICES ARE SEEN RISING AT A MERE 24 RATE IN FRANCE ONE OF THE LOWEST RATES IN EUROPE PHILIPPE BROSSARD CHIEF ECONOMIST AT CREDIT LYONNAIS IN PARIS SAYS HE BELIEVES THE STRONGER FRANC WILL BE A LASTING PHENOMENON THIS IS A HONEYMOON PERIOD FOR THE NEW GOVERNMENT THAT QUICKLY GAINED A LOT OF CREDIBILITY IN FINANCIAL MARKETS MR BROSSARD SAYS MOST ANALYSTS NOW EXPECT THE FRENCH CURRENCY TO STRENGTHEN TO AROUND ITS CENTRAL RATES VS THE MARK OF 335 FRANCS IT IS BELIEVED THAT THE FRANC DIDN'T RISE FURTHER LAST WEEK BECAUSE THE BANK OF FRANCE WAS BUYING US DOLLARS AND MARKS TO REBUILD ITS RESERVES ANOTHER PLUS FOR FRANC SENTIMENT IS THE IMPENDING CHANGE IN THE FRENCH CENTRAL BANK'S CHARTER WHICH SHOULD GIVE IT MORE SCOPE TO PROMOTE PRICE STABILITY ECONOMICS MINISTER EDMOND ALPHANDERY IS DUE TO DELIVER CONCRETE PROPOSALS TO PRIME MINISTER EDOUARD BALLADUR THIS WEEK THE EXACT MANDATE OF THE UNSHACKLED BANK OF FRANCE IS NOW A MATTER OF DEBATE FLORENT BRONES DIRECTOR OF EUROPEAN STRATEGY AT SOCIETE GENERALE SAYS THE ISSUE HAS BECOME SOMEWHAT MIRED IN SEMANTICS WITH SOME FAVORING AN AUTONOMOUS BANK AND OTHER PREFERRING ONE THAT IS INDEPENDENT MR BRONES ADDS THAT WHICHEVER WAY THE BANK IS DESCRIBED IT IS NOW CERTAIN THAT IT WILL SUPPORT THE FRANC FORT POLICY WHICH MEANS INEVITABLY FOLLOWING THE BUNDESBANK'S LEAD AT LEAST OVER THE MEDIUM TERM ON THAT BASIS RATES IN BOTH COUNTRIES APPEAR LIKELY TO BE ON A PAINFULLY SLOW STEADY PATH DOWNWARD WITH THE GERMANS LIKELY CONTINUING THEIR RECENT PRACTICE OF DRIP FEEDING THE ECONOMY AND MARKET SENTIMENT WITH TINY CUTS IN REPURCHASE AGREEMENT RATES AS SEEN LAST WEEK THE FRENCH INTERESTRATE STRUCTURE HAS ALREADY BEGUN RESPONDING TO THE POSITIVE CURRENCY OUTLOOK LONGTERM GOVERNMENT BOND YIELDS ARE DOWN TO AROUND 710 FROM A PEAK THIS YEAR OF 802 ON JAN 6 SIGNIFICANTLY THE SPREAD OR DIFFERENCE IN RATES BETWEEN FRENCH BONDS AND LOWER YIELDING MARK DEBT ISSUES HAS NARROWED TO ABOUT 050 OF A PERCENTAGE POINT FROM 094 PERCENTAGE POINTS IN EARLY JANUARY AND IS NOW NEAR ITS HISTORIC LOWS THE DECLINE SINCE JANUARY IN THREEMONTH INTEREST RATES HAS BEEN EVEN MORE DRAMATIC GOING FROM ABOUT 125 TO AROUND 88 AT THE END OF LAST WEEK GERMAN RATES BY CONTRAST HAVE ONLY FALLEN FROM 84 AT THE BEGINNING TO 78 ROBIN HUBBARD CHIEF ECONOMIST AT PARIBAS CAPITAL MARKETS GROUP POINTS OUT THAT THE CONTINUED INTERESTRATE ADVANTAGE THAT THE FRANC HAS WILL ENSURE THE FRANC STAYS OUT OF TROUBLE HE ADDS THAT THE EVENTUAL FALL IN FRENCH INTEREST RATES WILL LIKELY SPARK RALLIES IN BOTH THE BOND AND EQUITY MARKETS LEADING TO INCREASED FOREIGN INVESTMENT AND PROVIDING A FURTHER BOOST TO THE FRANC 9304190162 930419 WHO'S NEWS APPEL CHAIRMAN OF RADIO SHACK TO LEAVE TANDY FORT WORTH TEXAS BERNARD APPEL RESIGNED AS CHAIRMAN OF TANDY CORP'S FLAGSHIP RADIO SHACK DIVISION EFFECTIVE JUNE 30 HIS DEPARTURE COMES AS THE COMPANY NEARS THE PROPOSED SPINOFF OF ITS MANUFACTURING OPERATIONS INTO A NEW COMPANY CALLED TE ELECTRONICS INC THE BIGGEST OPERATION AMONG THE CONSUMER ELECTRONICS RETAILING DIVISIONS THAT WILL REMAIN IS RADIO SHACK A CHAIN OF NEARLY 7000 STORES THAT HAS SUFFERED A SLOWDOWN IN GROWTH IN RECENT YEARS MR APPEL 61 YEARS OLD WAS PRESIDENT OF RADIO SHACK UNTIL LAST YEAR WHEN HE WAS NAMED CHAIRMAN IN A MOVE THAT APPEARED TO REDUCE HIS AUTHORITY THREE EXECUTIVE VICE PRESIDENTS WERE NAMED TO AN OFFICE OF THE PRESIDENT FOR THE CHAIN THEY REPORT DIRECTLY TO JOHN V ROACH TANDY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE COMPANY DIDN'T NAME ANYONE TO SUCCEED MR APPEL AS RADIO SHACK CHAIRMAN MR APPEL WOULDN'T COMMENT ON THE REASONS FOR HIS DEPARTURE OTHER THAN SAYING THAT HE HAS BEEN WITH TANDY FOR NEARLY 34 TOUGH YEARS AND IT WAS TIME FOR A CHANGE HE SAID HE HAS A THREEANDAHALF YEAR PARTTIME CONSULTING AGREEMENT WITH THE COMPANY AND THE OPTION OF CONSULTING FOR OTHERS IF HE WISHES TANDY OFFICIALS COULDN'T BE REACHED FOR COMMENT 9304190161 930419 LAW LEGAL BEAT POLL FINDS DEATHPENALTY SUPPORT ISN'T AS STRONG AS IT MIGHT APPEAR BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL SUPPORT FOR THE DEATH PENALTY IS STRONG BUT NOT AS STRONG AS IT APPEARS ON THE SURFACE A NEW STUDY INDICATES THOUGH 77 OF THOSE POLLED FAVOR THE DEATH PENALTY AT LEAST SOMEWHAT THE STUDY BY THE DEATH PENALTY INFORMATION CENTER SAYS THIS SUPPORT BECOMES SOFT WHEN THE PUBLIC IS OFFERED EFFECTIVE ALTERNATIVES TO CAPITAL PUNISHMENT FOR INSTANCE THE PERCENTAGE OF THOSE WHO SAY THEY STRONGLY FAVOR CAPITAL PUNISHMENT DROPS TO 44 FROM 57 WHEN THE ALTERNATIVE IS LIFE WITHOUT ANY POSSIBILITY OF PAROLE AND A REQUIREMENT THAT THE CONVICT PROVIDE MONETARY RESTITUTION TO THE VICTIM'S FAMILY THE STUDY SAYS THE CENTER IS A NONPROFIT ORGANIZATION THAT PROVIDES INFORMATION ON CAPITAL PUNISHMENT WHILE IT ISN'T AN ADVOCACY GROUP THE ANALYSIS IT PROVIDES GENERALLY IS CRITICAL OF THE DEATH PENALTY POLLING FOR THE LATEST STUDY HOWEVER WAS DONE FOR THE CENTER JOINTLY BY GREENBERG/LAKE WHICH DID POLLS FOR THE CLINTON CAMPAIGN AND THE TARRANCE GROUP A POLLING FIRM FOR REPUBLICAN CANDIDATES THE SURVEY SCHEDULED FOR RELEASE TODAY SAMPLED 1000 REGISTERED VOTERS NATIONWIDE AND HAS A MARGIN OF ERROR OF 31 POLLS TAKEN IN RECENT YEARS HAVE INDICATED THAT ABOUT 75 OF AMERICANS FAVOR THE DEATH PENALTY THE NEW STUDY INDICATES FOR THE FIRST TIME THAT AMERICANS MAY BE READY FOR A CHANGE REGARDING THE DEATH PENALTY THE CENTER SAYS DEATH PENALTY SUPPORT BECOMES A MINORITY OPINION WHEN THE PUBLIC IS PRESENTED WITH A VARIETY OF ALTERNATIVE SENTENCES SINCE 1976 WHEN SOME STATES RESUMED USING THE DEATH PENALTY AFTER A 10YEAR HIATUS FOLLOWING A SUPREME COURT RULING 198 PEOPLE HAVE BEEN EXECUTED IN THE US THE CENTER SAYS LAST YEAR 31 PEOPLE WERE EXECUTED BY FAR THE HIGHEST NUMBER SINCE 1976 AND 10 PEOPLE HAVE BEEN EXECUTED SO FAR THIS YEAR ALMOST 2700 PEOPLE CURRENTLY ARE ON DEATH ROW REQUIRING MURDERERS TO MAKE SOME MONETARY RESTITUTION IS VERY IMPORTANT TO THOSE WHO FAVOR ALTERNATIVES TO THE DEATH PENALTY ALTHOUGH SOME STATES ALLOW RESTITUTION TO BE SOUGHT IN SUCH CASES IT RARELY HAS BEEN USED IN MOST CASES CONVICTED MURDERERS DON'T HAVE THE WEALTH TO MAKE RESTITUTION FEASIBLE ALTHOUGH 22 SAID THEY BELIEVE THAT KILLING ANYONE IS IMMORAL SOME OF THESE RESPONDENTS SAID THEY WOULD SUPPORT THE DEATH PENALTY UNDER CERTAIN CIRCUMSTANCES THE CORE OPPOSITION TO CAPITAL PUNISHMENT WAS 16 OF THOSE SURVEYED ONE REASON THE MAJORITY OF THE PUBLIC SUPPORTS THE DEATH PENALTY THE REPORT SAYS IS THE BELIEF THAT CRIMINALS SENTENCED TO LIFE IN PRISON ARE RELEASED AFTER SEVERAL YEARS BUT THAT VIEW IS MISTAKEN THE REPORT SAYS THE PERCEPTION THAT A MURDERER CONVICTED OF A CAPITAL CRIME WILL BE BACK ON THE STREETS IN SEVEN YEARS IF NOT GIVEN THE DEATH PENALTY IS TOTALLY INACCURATE ACCORDING TO THE CENTER THIRTYTHREE STATES PLUS THE DISTRICT OF COLUMBIA AND THE FEDERAL GOVERNMENT IMPOSE LIFE SENTENCES WITHOUT PAROLE ALL OTHER STATES REQUIRE THOSE WHO ARE SENTENCED TO LIFE TO SERVE AT LEAST 20 YEARS ELIMINATING THE DEATH PENALTY WOULDN'T INCREASE THE HOMICIDE RATE ACCORDING TO THE CENTER JUDGING BY THE CRIME RATES IN THOSE STATES THAT HAVE ABOLISHED CAPITAL PUNISHMENT AND INSTITUTED ALTERNATIVE SENTENCES THE ABSENCE OF THE DEATH PENALTY WOULD CAUSE NO RISE IN THE MURDER RATE THE REPORT SAYS THE STRONGEST DOUBTS ABOUT CAPITAL PUNISHMENT EXPRESSED BY 58 OF THOSE POLLED ARE RAISED BY THE PROSPECT THAT INNOCENT PEOPLE MAY BE EXECUTED NEARLY HALF THE RESPONDENTS 48 SAID THE ISSUE OF RACISM IN THE USE OF CAPITAL PUNISHMENT ALSO RAISED DOUBTS ABOUT THE ULTIMATE PENALTY ALTHOUGH 50 OF MURDER VICTIMS ARE AFRICANAMERICANS THE CENTER SAYS ONLY 6 OF THE 1992 EXECUTIONS INVOLVED CRIMES AGAINST BLACK VICTIMS PEOPLE BELIEVE THAT THE DEATH PENALTY IS ARBITRARY THAT IT IS IMPOSED IN A RACIALLY DISCRIMINATORY MANNER AND THAT THERE IS A DANGER THAT INNOCENT PEOPLE MAY BE EXECUTED BY MISTAKE THE REPORT SAYS THE FORMER CHIEF FINANCIAL OFFICER OF AROCHEM CORP A DEFUNCT OIL TRADING AND REFINING CONCERN WAS SENTENCED TO FIVE YEARS PROBATION INCLUDING THREE MONTHS HOME CONFINEMENT FOR HIS ROLE IN A 150 MILLION BANK FRAUD US JUDGE PIERRE N LEVAL SAID HE IMPOSED THE RELATIVELY LENIENT SENTENCE ON VICTOR J DISPENZA WHO PLEADED GUILTY TO FOUR COUNTS OF BANK FRAUD AND CONSPIRACY BECAUSE THE DEFENDANT COOPERATED WITH PROSECUTORS HE ALSO ORDERED MR DISPENZA TO PERFORM 200 HOURS OF COMMUNITY SERVICE A YEAR DURING HIS PROBATION MR DISPENZA TESTIFIED LAST YEAR IN FEDERAL COURT IN NEW YORK AGAINST AROCHEM'S FORMER PRESIDENT ROY WILLIAM HARRIS WHO BECAME THE FIRST PERSON CONVICTED UNDER A SPECIAL WHITECOLLAR KINGPIN LAW THAT CARRIES A POTENTIAL LIFE SENTENCE FOR FINANCIAL CRIME PROSECUTORS ACCUSED MR HARRIS MR DISPENZA AND OTHERS AT THE STAMFORD CONN COMPANY OF DEFRAUDING SEVERAL BANKS BY AMONG OTHER THINGS DOCUMENTING PHANTOM OIL SHIPMENTS TO KEEP A LINE OF CREDIT ORGANIZED BY CHASE MANHATTAN BANK A UNIT OF CHASE MANHATTAN CORP MR HARRIS IS SCHEDULED TO BE SENTENCED IN MAY WHO'S NEWS CLAYTON K YEUTTER FORMER US TRADE REPRESENTATIVE AND REPUBLICAN NATIONAL COMMITTEE CHAIRMAN JOINED WASHINGTON LAW FIRM HOGAN & HARTSON AS OF COUNSEL NEW YORK TEAM AKIN GUMP STRAUSS HAUER & FELD SAID FIVE LAWYERS FROM COUDERT BROTHERS JOINED THE DALLAS FIRM AND WILL OPEN A NEW OFFICE IN NEW YORK THE NEW PARTNERS ARE ELLEN R WERTHER SPECIALIZING IN BANKRUPTCY JONATHAN M JACOBSON LITIGATION STEPHEN M VINE CORPORATE AND PATRICK B FENN TAX SCOTT E RATNER JOINED AS A BANKRUPTCY ASSOCIATE AKIN GUMP HAS MAINTAINED AN OFFICE IN NEW YORK BUT THIS IS THE FIRST TIME IT HAS HAD LAWYERS BASED THERE MS WERTHER WILL BE PARTNER IN CHARGE TRIBAL SOVEREIGNTY AN INDIAN TRIBE HAD NO AUTHORITY TO ENACT AN ORDINANCE DISCOURAGING NORTHERN STATES POWER CO MINNEAPOLIS FROM SHIPPING NUCLEAR MATERIALS ACROSS RESERVATION LINES THE EIGHTH US CIRCUIT COURT OF APPEALS RULED A FEDERAL HAZARDOUSMATERIALS LAW PREEMPTS THE SOVEREIGNTY OF THE PRAIRIE ISLAND MDEWAKANTON SIOUX INDIAN COMMUNITY A THREEJUDGE PANEL IN ST LOUIS SAID WILLIAM J HARDACKER A MINNEAPOLIS ATTORNEY FOR THE TRIBE SAID HE DIDN'T KNOW WHETHER IT WILL SEEK A REHEARING BEFORE THE FULL APPEALS COURT JONATHAN M MOSES IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9304190160 930419 COMPUTERS INTEL DECISION UNLIKELY TO END AMD DISPUTE BY RALPH T KING JR AND KEN YAMADA STAFF REPORTERS OF THE WALL STREET JOURNAL A FEDERAL JUDGE'S UNEXPECTED DECISION FRIDAY IN THE LONGRUNNING LITIGATION BETWEEN INTEL CORP AND ADVANCED MICRO DEVICES INC IS LIKELY TO BEGIN ANOTHER HIGHSTAKES LEGAL CHESS GAME BETWEEN THE TWO RIVALS THE JUDGE'S STUNNING DISMISSAL OF A JURY VERDICT IN THE FEUD BETWEEN THE TWO CHIP MAKERS CLEARS THE WAY FOR AMD TO START SELLING CLONES OF INTEL'S PROFITABLE 486 MICROPROCESSORS THE DECISION WOULD APPEAR TO BE A TRIUMPH FOR AMD WHICH THRIVES BY SELLING COPIES OF INTEL CHIPS AND A BLOW TO INTEL WHICH IS REAPING MONOPOLY PROFITS FROM THE POPULAR 486 BUT AMD MUST NOW WEIGH A SHORTTERM BONANZA AGAINST CONTINUING LEGAL RISK THE JURY VERDICT IN EFFECT HAD HELD THAT AMD DIDN'T HAVE THE RIGHT UNDER A TECHNOLOGYSHARING AGREEMENT TO SELL A 486 CLONE THAT USED INTEL'S MICROCODE WHICH IS THE CRUCIAL COMPLEX SOFTWARE EMBEDDED IN THE CHIP THE VERDICT ABORTED PLANS BY AMD TO BEGINNING SELLING A 486 CLONE EARLIER THIS YEAR BUT JUDGE WILLIAM INGRAM THREW OUT THE VERDICT AFTER THE DISCOVERY OF EVIDENCE ALLEGEDLY ALTERED AND SUPPRESSED BY INTEL THAT JUDGE INGRAM SAID PREVENTED AMD FROM GETTING A FAIR TRIAL THE JUDGE GRANTED AMD A NEW TRIAL WITH THAT ANNOUNCEMENT TRADING IN THE STOCKS OF BOTH COMPANIES HALTED IN AFTERHOURS OFFEXCHANGE TRADING INVESTORS DROVE INTEL'S STOCK PRICE DOWN ABOUT 15 A SHARE TO 95 AND AMD'S STOCK UP ABOUT 4 TO 28 A SHARE ACCORDING TO PUBLISHED REPORTS SOME ANALYSTS EXPECT THAT FRENZIED PATTERN TO RESUME TODAY YET THE LIKELIHOOD OF A 486CHIP PRICE WAR WHICH WOULD ERODE INTEL'S 40 PROFIT MARGINS AND CLOBBER ITS STILLLOFTY STOCK PRICE IS SLIM BEFORE THE END OF THE YEAR MAINLY BECAUSE THERE IS HUGE UNMET DEMAND FOR THE POWERFUL CHIPS AND AMD IS ONLY ABOUT 10 WEEKS AWAY FROM SHIPPING A PROPRIETARY VERSION OF THE 486 THAT DOESN'T USE INTEL'S MICROCODE SO THE JUDGE'S DECISION MAY HAVE BEEN TOO LITTLE TOO LATE AMD IS LIKELY TO SECURE ADDITIONAL PROFITS FOR ONLY A SHORT TIME AMD WILL NOT REVEAL ITS PRODUCTION AND MARKETING PLANS FOR ITS CLONE OF INTEL'S 486 UNTIL SOMETIME TODAY AT THE EARLIEST AN AMD SPOKESMAN SAID AND INTEL'S NEXT LEGAL MOVE LARGELY DEPENDS ON AMD'S PLANS ACCORDING TO AN INTEL ATTORNEY THUS THE BIG QUESTION IS WHETHER AMD IN SHIPPING THE CLONE IS WILLING TO EXPOSE ITSELF AND ITS CUSTOMERS TO POTENTIAL LIABILITY IN THE EVENT OF A NEW TRIAL OR WHETHER IT WILL WAIT SHIPPING ITS PROPRIETARY VERSION OF THE 486 IN JUNE AS IT HAD PLANNED THE FORMER STRATEGY WOULD ENABLE AMD TO BOLSTER PROFITS ALMOST IMMEDIATELY AND AVOID QUESTIONS OF PERFORMANCE AND COMPATIBILITY THAT ITS INHOUSE 486 CHIP WILL INEVITABLY FACE UPON INTRODUCTION BUT IF IT SHIPS THE CLONE FURTHER LEGAL ACTION BY INTEL IS ALMOST CERTAIN JOHN GREENAGEL THE AMD SPOKESMAN SAID COMPANY OFFICIALS ARE LEANING TOWARD SHIPPING THE 486 CLONE BUT HAVEN'T MADE A FINAL DECISION THERE IS SOME RISK BUT THERE ARE ENORMOUS ADVANTAGES HE SAID WE ARE NOW WEIGHING THE RISKS AND MAKING THE DECISIONS F THOMAS DUNLAP THE INTEL ATTORNEY SAID WE ARE BASICALLY JUST GOING TO START ALL OVER AGAIN WE WON ONCE WE'LL WIN AGAIN HE DECLINED TO SAY WHETHER INTEL WOULD SEEK A PRELIMINARY INJUNCTION AGAINST AMD IF AMD BEGAN SELLING THE DISPUTED VERSION WHATEVER THE OUTCOME THE LATEST TURN OF EVENTS ILLUSTRATES ONCE AGAIN JUST HOW FAR MIGHTY INTEL WILL GO TO PROTECT ITS TURF FROM FAR SMALLER RIVALS IN HIS RULING JUDGE INGRAM SCOLDED INTEL SAYING ITS FAILURE TO SURRENDER FOUR DOCUMENTS SUBSTANTIALLY INTERFERED WITH AMD'S DISCOVERY AND TRIAL PRESENTATION AND PREVENTED AMD FROM FAIRLY PRESENTING ITS DEFENSE THE JUDGE ADDED THE TRIAL VALUE OF THE DOCUMENTS IN QUESTION IS OBVIOUS IF THE JURY BELIEVES THEM TO BE CORPORATE ADMISSIONS THEY MAY EACH HAVE SUBSTANTIAL PROBATIVE FORCE ANOTHER STARTLING POINT RAISED IN THE JUDGE'S RULING IS THAT INTEL MAY HAVE PURPOSELY ALTERED AN INTERNAL COMPANY MEMO REMOVING ITS DATE AND A COVERING SHEET THE MEMO OBTAINED BY AMD AFTER THE JURY'S VERDICT IN JUNE SUMMARIZES THE STATUS OF LITIGATION INVOLVING INTEL IT APPEARS TO CONCEDE THAT UNDER A 1976 LICENSING AGREEMENT AMD HAD CERTAIN RIGHTS TO COPY AND USE INTEL MICROCODE IN CLONING CHIPS DURING THE TRIAL INTEL REPEATEDLY STATED THE RIGHTS APPLIED ONLY TO DEVELOPMENT OF ENTIRE COMPUTER SYSTEMS NOT TO DESIGNING CHIPS FOR COMMERCIAL SALE AN INTEL OFFICIAL DENIED THAT THERE WAS AN ATTEMPT TO DECEIVE AMD OR HIDE THE DATE OF THE DOCUMENT ACCORDING TO THE JUDGE'S RULING BUT AMD CHAIRMAN WJ SANDERS III SAID IN A STATEMENT THAT INTEL'S MADEFORTRIAL ARGUMENTS IN THE ABSENCE OF THESE CRITICAL DOCUMENTS ENABLED INTEL TO DECEIVE THE JURY INDEED THE ALLEGED MISCONDUCT IS REMINISCENT OF PAST BEHAVIOR BY INTEL IN LEGAL DISPUTES WITH AMD LAST YEAR FOR EXAMPLE IN GRANTING AMD THE RIGHT TO CLONE INTEL'S LESSPOWERFUL 386 CHIP AN ARBITRATOR SAID INTEL'S ACTIONS WERE A CLASSIC EXAMPLE OF A BREACH OF THE COVENANT OF GOOD FAITH AND FAIR DEALING PREACHING GOOD FAITH BUT PRACTICING DUPLICITY THE LEGAL DISPUTE WITH AMD INCLUDING FRIDAY'S RULING HAS NO IMPACT ON INTEL'S NEXTGENERATION CHIP THE PENTIUM WHICH IT BEGAN SHIPPING IN LIMITED QUANTITIES LAST MONTH SOME ANALYSTS PREDICT THAT WHATEVER AMD DOES ITS SHARE OF THE 486 MARKET WILL STILL BE LESS THAN 15 BY YEAR END ASSUMING AMD SHIPS ONLY ITS PROPRIETARY CHIP THAT SHARE WILL BE ABOUT 5 ACCORDING TO INSTAT A MARKET RESEARCH FIRM IN SCOTTSDALE ARIZ INSTAT ESTIMATES ALL PRODUCERS INCLUDING INTEL AMD AND PRIVATELY HELD CYRIX CORP WILL PRODUCE 24 MILLION 486 CHIPS IN 1993 UP FROM 11 MILLION LAST YEAR PART OF THE REASON AMD CAN'T FLOOD THE MARKET IS THAT IT CURRENTLY HAS LIMITED PRODUCTION CAPACITY FOR 486 CHIPS IT HAS BEEN LOOKING FOR MONTHS FOR A PRODUCER TO SUPPLEMENT OUTPUT FROM ITS SUNNYVALE CALIF FACILITY THUS THOUGH PRICES FOR 486 CHIPS SHOULD DECLINE SLIGHTLY BY THE END OF THE YEAR THEY WON'T PLUMMET PREDICTS ELY SAYEGH AN ANALYST WITH HANCOCK INSTITUTIONAL EQUITY SERVICES ALL MODELS OF 486 CHIPS CURRENTLY AVAILABLE SELL FOR AN AVERAGE PRICE OF 240 EACH FOR 1000 UNITS MR SAYEGH SAYS THAT AVERAGE SHOULD STAY ABOVE 200 OR SO THIS YEAR BUT IT COULD FALL TO AS LOW AS 100 BY THE END OF 1994 HE SAID THE RESULT WOULD BE TO HALVE INTEL'S OPERATING MARGINS BUT EVEN AT 20 MARGINS INTEL WOULD BE EXTREMELY PROFITABLE 9304190159 930419 COMMODITIES LONDON'S OIL FUTURES OPTIONS BUSINESS BOOMS AS VOLUME SURGES ON IPE AND LIQUIDITY INCREASES BY NEIL BEHRMANN AND WARREN GETLER STAFF REPORTERS OF THE WALL STREET JOURNAL LONDON'S OIL FUTURES AND OPTIONS BUSINESS IS BOOMING TRADING VOLUME ON THE INTERNATIONAL PETROLEUM EXCHANGE THE WORLD'S SECOND LARGEST ENERGY FUTURES MARKET AFTER THE NEW YORK MERCANTILE EXCHANGE SURGED BY THREE MILLION CONTRACTS OR 37 TO 119 MILLION IN 12 MONTHS ENDED IN MARCH SAYS PETER WILDBLOOD CHIEF EXECUTIVE OFFICER OF THE IPE THAT'S A TWENTYFOLD INCREASE FROM LEVELS SEEN A DECADE AGO HE ADDS TRADERS EXPECT THE MOMENTUM TO CONTINUE TO BUILD AS THE LIQUIDITY IN THE MARKET INCREASES A LIQUID MARKET IS ONE THAT ALLOWS PARTICIPANTS TO BUY AND SELL WITH RELATIVE EASE AND WITHOUT RISK OF TRIGGERING RADICAL PRICE SWINGS THE MORE LIQUID A COMMODITIES MARKET THE MORE ATTRACTIVE IT BECOMES TO ALL PLAYERS INCLUDING HEDGERS AND SPECULATORS ONE SIGN THAT THE IPE IS GROWING IN STATURE IS THAT MEMBERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES ARE BEGINNING TO TURN TO THE IPE TO TRADE NORTH SEA BRENT OIL FUTURES AND OPTIONS TO HEDGE THEIR OWN PRODUCTION AGAINST PRICE SWINGS MR WILDBLOOD SAYS MEXICO INDONESIA AND VENEZUELA ESPECIALLY ARE USING THE IPE TO HEDGE AND TRADERS SAY THE UNITED ARAB EMIRATES LIBYA AND IRAN ALSO HAVE MADE TRIAL RUNS ON THE EXCHANGE THEY ARE TESTING THE WATERS AND WE EXPECT BUSINESS FROM THE REGION TO INCREASE MARKEDLY IN THE NEXT FIVE YEARS SAYS MICHAEL LAWSON AN OIL TRADER AT LEHMAN BROTHERS INTERNATIONAL IN LONDON SO FAR OIL PRODUCING NATIONS ACCOUNT FOR AROUND 8 OF THE EXCHANGE'S VOLUME WITH REFINERS ACCOUNTING FOR 23 AND DISTRIBUTORS AND CONSUMERS ACCOUNTING FOR 10 SAYS THE IPE PROFESSIONAL OIL TRADERS GENERATE ABOUT 38 OF THE EXCHANGE'S TRADE AND COMMODITY FUNDS AND OTHER SPECULATORS PROVIDE THE REMAINING 21 BRENT TRADE VOLUME IS NOW EQUIVALENT TO NEARLY 40 OF TRADE IN NEW YORK'S CRUDE OIL CONTRACT THE MOST ACTIVE CRUDE FUTURES AND OPTIONS IN THE WORLD COMPARED WITH ONLY 8 IN 1989 MR WILDBLOOD SAYS THE NEW YORK MERC PROFESSES NOT TO BE WORRIED ABOUT THE GROWING ROLE OF THE IPE IN THE WORLD ENERGY MARKETS LAST YEAR THE MERC'S TOTAL VOLUME FOR ENERGY FUTURES AND OPTION CONTRACTS JUMPED 16 TO A RECORD 47 MILLION CONTRACTS AND BECAUSE LONDON AND NEW YORK TRADERS ACTIVELY ARBITRAGE OR DEAL IN PRICE DIFFERENCES BETWEEN BRENT AND THE MERC'S CRUDE CONTRACT SOME TRADERS ARGUE THAT THE IPE AND NEW YORK MERC COMPLEMENT EACH OTHER WE FEEL THE IPE IS COMPLEMENTARY TO OUR MARKET AS OPPOSED TO BEING COMPETITION SAYS DANIEL RAPPAPORT THE NEWLY ELECTED CHAIRMAN OF THE NEW YORK MERC IN THE LONG HAUL EVEN THOUGH WE MAY NOT MAINTAIN OUR LEVEL OF MARKET SHARE THE SIZE OF THE OVERALL PIE WILL GROW SIGNIFICANTLY AS A RESULT OF THE IPE'S PARTICIPATION IN THE ENERGY FUTURES MARKET ONE REASON THE MERC CAN REMAIN SANGUINE ABOUT THE IPE IS THAT THE BIG NEW YORK EXCHANGE HAS MUCH GREATER LIQUIDITY THAN THE SMALLER LONDON EXCHANGE EXPERTS SAY LARGELY THE RESULT OF THE PRESENCE OF HUGE COMMODITY FUNDS WHICH MANAGE POOLS OF INVESTMENT MONEY LIQUIDITY IS THE EDGE SAYS MR RAPPAPORT THE IPE FOR THE MOST PART HAS BEEN UNABLE TO DEVELOP THE SAME DEPTH OF THE MARKET IN THE DISTANT CONTRACT MONTHS AS FOR FUTURE COMPETITION BETWEEN THE TWO BIG ENERGY MARKETS SAYS MR RAPPAPORT WE'VE CAPTURED THE NORTH AMERICAN MARKET AND HAVE THE EDGE IN SOUTH AMERICA THE IPE HAS FOR THE MOST PART DOMINATION OVER THE EUROPEAN MARKET ASIA IS PROBABLY THE AREA THAT OFFERS THE MOST POTENTIAL GROWTH FOR EACH OF US THE BRENT CONTRACT IS BY FAR THE MOST IMPORTANT IPE CONTRACT BECAUSE IT IS TRULY INTERNATIONAL SAYS PETER GIGNOUX MANAGER OF SMITH BARNEY HARRIS UPHAM EUROPE LTD'S PETROLEUM DESK THE TIME ZONE HELPS THE IPE IS OPEN FROM 915 AM TO 815 PM ATTRACTING CLIENTS FIRST FROM ASIA THEN EUROPE AND FINALLY THE US HE SAYS SAUDI ARABIAN AND OTHER PERSIAN GULF PRODUCERS FOR EXAMPLE USE BRENT SPOT PRICES AS A MARKER OR INDEX FOR THEIR QUOTES HE SAYS TO BE SURE A REPORT ON MIDDLE EAST CRUDE OIL RISKMANAGEMENT BY ROBERT WEINER AND HENDRIK HOUTHAKKER OF HARVARD UNIVERSITY AND SUZANNE HAMMOND OF CATALYST GROUP INTERNATIONAL CONCLUDED THAT PRODUCERS AND REFINERS COULD HAVE ELIMINATED AS MUCH AS 98 OF THEIR PRICE RISKS HAD THEY HEDGED MIDDLE EASTERN CRUDES AGAINST BRENT FUTURES JAPANESE TRADING HOUSES FOR EXAMPLE ARE HEDGING DIRECT OIL PURCHASES AND OIL BARTER DEALS WITH THE COMMONWEALTH OF INDEPENDENT STATES AGAINST BRENT SAYS ALASTAIR HARRIS AN INDEPENDENT CONSULTANT WHO IS CLOSE TO OIL COMPANIES THE BRENT CONTRACT IS FAR MORE INTERNATIONAL THAN NYMEX'S CRUDE CONTRACT WHICH CAN BE AFFECTED BY DOMESTIC US INFLUENCES MR LAWSON OF LEHMAN BROTHERS SAYS THE IPE HAS EXPERIENCED SOME FAILURES DEALERS SAY VOLUMES OF ITS UNLEADED GASOLINE CONTRACT ARE TINY WHEN COMPARED WITH BRENT AND HEATING OIL DUBAI CRUDE AND NAPHTHA CONTRACTS FAILED DISMALLY THEY SAY YET WITH OVERALL VOLUMES SOARING PRICES OF IPE EXCHANGE SEATS ARE NOW TRADING AT AROUND 140000 35 TIMES THE LEVELS IN 1988 AT THE NEW YORK MERC EXCHANGE SEATS HAVE CLIMBED SOME 40 SINCE 1988 TO TRADE AT AROUND 260000 LOOKING AHEAD TO COMMODITY MARKETS THIS WEEK TRADERS WILL FOCUS ON WHETHER THE UNUSUALLY TIGHT SUPPLY OF HOGS READY FOR SLAUGHTER IS BEGINNING TO EASE HOG PRICES SANK LATE LAST WEEK WHEN US HOG SLAUGHTER SUDDENLY SWELLED AND SOME TRADERS EXPECT PORK PRODUCTION THIS WEEK TO EXCEED THE YEAREARLIER WEEK BY ROUGHLY 5 IT ISN'T CLEAR WHY THE SUPPLY OF FATTENED HOGS IS RISING A FEW TRADERS ARE SPECULATING THAT MIDWEST FARMERS MIGHT BE TAKING ADVANTAGE OF THE RAINDELAYED PLANTING SEASON TO RUSH THEIR LIVESTOCK TO MARKET HOWEVER THE HOGS GOING TO MARKET ARE CLOSE TO THEIR NORMAL WEIGHT HOG PRICES HAVE RALLIED FOR MUCH OF THE YEAR BECAUSE THE SUPPLY OF MATURE HOGS SLIPPED DESPITE GOVERNMENT FORECASTS FOR A RISING SLAUGHTER CATTLE TRADERS EXPECT AN AGRICULTURE DEPARTMENT SURVEY SLATED FOR RELEASE FRIDAY TO SHOW A LARGER INVENTORY OF CATTLE BEING FATTENED FOR SLAUGHTER DAN VAUGHT AN ANALYST AT AG EDWARDS & SONS ST LOUIS SAID HE EXPECTS THE MONTHLY SEVENSTATE SURVEY TO SHOW 10 MORE CATTLE ON FEEDLOTS ON APRIL 1 COMPARED WITH THE YEAREARLIER DATE FEEDLOTS FATTEN CATTLE FOR SLAUGHTER 9304190158 930419 WHO'S NEWS CANCER TREATMENT HOLDINGS INC CANCER TREATMENT HOLDINGS INC FORT LAUDERDALE FLA STANLEY L MALKIN WAS NAMED PRESIDENT OF THIS DEVELOPER OF OUTPATIENT RADIATION THERAPY CENTERS DR MALKIN 50 YEARS OLD WAS THE COMPANY'S CHIEF MEDICAL DIRECTOR AND HE SUCCEEDS KENNETH L SCOTT 39 WHO RESIGNED ULLRICH KLAMM CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY UNDERWENT A CHANGE OF OWNERSHIP IN FEBRUARY DR KLAMM SAID MR SCOTT LEFT BECAUSE HE FELT THAT HE COULD NO LONGER OPERATE WITH THE AUTONOMY HE ONCE DID UNDER THE PREVIOUS OWNER MR SCOTT COULDN'T BE REACHED FOR COMMENT 9304190157 930419 JWP DELAYS ITS SEC FILING RYE BROOK NY JWP INC SAID IT WILL DELAY FILING ITS 1992 FINANCIAL STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION SHAREHOLDERS SUED THE TECHNICALSERVICES COMPANY AND ITS OUTSIDE AUDITOR ERNST & YOUNG EARLIER THIS YEAR ACCUSING JWP OF WIDESPREAD ACCOUNTING IMPROPRIETIES THE COMPANY WHICH IS UNDERGOING A MAJOR RETRENCHMENT HAS DENIED THE ALLEGATIONS JWP SAID IT WILL FILE ITS 1992 STATEMENT WITH THE SEC WHEN ITS YEAREND AUDIT IS COMPLETED BY ERNST & YOUNG BUT DECLINED TO BE MORE SPECIFIC SINCE LAST SUMMER THE COMPANY HAS REVISED ITS EARNINGS OUTLOOK SEVERAL TIMES AND ANNOUNCED A SERIES OF CHARGES THAT TOTAL ABOUT 300 MILLION FOR THE FULL YEAR 9304190156 930419 LETTERS TO THE EDITOR FOREIGN MINIVAN TARIFF MAY HIT FAMILIES HARD THE LAST TIME I CHECKED THE GRASS IN MY FRONT YARD WAS ALL NATURAL NOT ASTROTURF THE BIAS IN YOUR MARCH 17 ARTICLE CRITICS SAY ANTITARIFF ACTIVISTS IN WASHINGTON HAVE GRASSROOTS BASE THAT'S MADE OF ASTROTURF APPEARED BLATANT AS DIRECTOR OF GOVERNMENT RELATIONS FOR THE FAMILY RESEARCH COUNCIL A NONPROFIT ORGANIZATION I VISITED SENATORS OR THEIR STAFFS WITH A COALITION GROUP ON MARCH 12 LOBBYING AGAINST THE 25 TARIFF ON FOREIGN MINIVANS THE MEETINGS WERE ORGANIZED BY CITIZENS FOR A SOUND ECONOMY YOUR ARTICLE FAILS TO ACKNOWLEDGE THAT THE 25 TARIFF OFFERS AUTO MAKERS AN OPPORTUNITY TO RAISE PRICES ON THE AMERICAN MINIVAN AND YOU FAIL TO UNDERSTAND THE SITUATION IN WHICH MANY AMERICAN FAMILIES FIND THEMSELVES WITH THE ADVENT OF CARSEAT REGULATIONS OVER THE PAST 10 YEARS MOST FAMILIES WITH TWO OR MORE CHILDREN MUST PURCHASE MINIVANS TO ACCOMMODATE CAR SEATS AMERICAN FAMILIES USE THESE VEHICLES FOR CAR POOLS VACATIONS AND DAILY TRANSPORTATION WHAT ARE THE BIG THREE AFRAID OF THEY HAVE 918 OF AMERICA'S MARKET IF THE TARIFF INCREASE OCCURS IT ALLOWS THEM TO INCREASE THE COST PER MINIVAN AS MUCH AS 6000 IT SOUNDS AS IF THEY DISCOVERED THE TRUE NATURE OF THE GRASS IN MY FRONT YARD AND WERE USING A SHOVELFUL OF FERTILIZER FROM THE MEDIA TO COVER IT UP 9304190155 930416 POLITICS & POLICY HEALTHCARE PROPOSALS BASED ON COMPETITION ARE VIEWED WITH SKEPTICISM IN RURAL AREAS BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE THEORY OF MANAGED COMPETITION WAS CONCEIVED BY A GROUP OF HEALTHCARE POLICY EXPERTS MEETING IN WYOMING BUT THE APPROACH COULDN'T POSSIBLY WORK IN MOST PARTS OF THE STATE LIKEWISE MANAGED COMPETITION WILL BE A CORNERSTONE OF THE HEALTHREFORM PROPOSAL TO BE UNVEILED NEXT MONTH BY A PRESIDENT AND FIRST LADY FROM ARKANSAS ANOTHER STATE WHERE THE IDEA HAS ONLY LIMITED APPLICATION IN ITS PUREST FORM MANAGED COMPETITION CALLS FOR BLENDING EMPLOYERS INTO GIANT PURCHASING NETWORKS TO SHOP FOR HEALTH COVERAGE THE HOPE IS THAT THE POWER OF THESE NETWORKS WOULD SPUR COMPETITION AMONG HEALTH PLANS HELPING TO CONTROL PRICES AND IMPROVE QUALITY BUT TO HAVE MANAGED COMPETITION THERE HAS TO BE A SUFFICIENT NUMBER OF COMPETITORS SPARSELY POPULATED FRONTIER AND AGRICULTURAL AREAS OFTEN HAVE ONLY ONE HOSPITAL OR CLINIC AND A HANDFUL OF OTHER HEALTHCARE PROVIDERS IN SUCH AN ENVIRONMENT THERE CLEARLY AREN'T ENOUGH PLAYERS TO FORCE PRICES LOWER THROUGH A BATTLE IN THE MARKETPLACE WHAT'S NEEDED IS A DIFFERENT SORT OF SYSTEM WHICH HEALTH EXPERTS IN AND OUT OF GOVERNMENT CALL MANAGED COOPERATION THE NOTION IS THAT IN PARTICULARLY REMOTE PLACES YOU GET HEALTH PROVIDERS WORKING TOGETHER INSTEAD OF COMPETING WITH EACH OTHER EXPLAINS IRA MOSCOVICE DIRECTOR OF THE UNIVERSITY OF MINNESOTA'S RURAL HEALTH RESEARCH CENTER AND THE COAUTHOR OF A PAPER THAT CLINTON OFFICIALS SAY IS A GOOD INDICATOR OF THE WHITE HOUSE'S INTENTIONS ON THIS TOPIC FROM THE BEGINNING HILLARY RODHAM CLINTON HAS POINTED OUT THE SHORTCOMINGS OF MANAGED COMPETITION IN RURAL AREAS SO MUCH SO AIDES SAY THAT RUMORS BEGAN TO SWIRL QUESTIONING HER ALLEGIANCE TO THE ENTIRE CONCEPT TODAY MRS CLINTON IS TO SPEAK AT A HEALTHCARE CONFERENCE IN NEBRASKA BEFORE GOING ON TO MONTANA TO TALK WITH NATIVE AMERICAN TRIBAL LEADERS ABOUT PROVIDING HEALTH SERVICES TO OUTOFTHEWAY AREAS IT'S CLEAR TO ME THAT SHE HAS NOT ONLY THOUGHT ABOUT THE ISSUE BUT YOU CAN TELL FROM HER TONE OF VOICE THAT IT'S VERY IMPORTANT TO HER SAYS SEN MAX BAUCUS A MONTANA DEMOCRAT STILL MANY OF THOSE REPRESENTING RURAL AREAS HAVE FELT LEFT OUT THIS PROBLEM IN FACT WAS THE FIRST THING THAT SENATE MINORITY LEADER ROBERT DOLE OF KANSAS RAISED WITH MRS CLINTON AND SENIOR WHITE HOUSE ADVISER IRA MAGAZINER WHEN THEY CALLED ON HIM AT THE CAPITOL IN FEBRUARY WHEN YOU LOOK AT WEST VIRGINIA IT'S HARD TO CONCEIVE THAT MANAGED COMPETITION COULD EVER WORK HERE SAYS DAVID GRUBB A DEMOCRATIC STATE SENATOR IN CHARLESTON ARE WE GOING TO BE PART OF THIS HEALTHCARE REFORM OR NOT RECOGNIZING THESE FEELINGS THE ADMINISTRATION RECENTLY STEPPED UP ITS OUTREACH TO RURAL COMMUNITIES BESIDES MRS CLINTON'S MEETINGS IN THE WEST TODAY AND TOMORROW HEALTH AND HUMAN SERVICES SECRETARY DONNA SHALALA TRAVELED YESTERDAY TO THREE TOWNS IN NORTH DAKOTA WE RECOGNIZE MANAGED COMPETITION WON'T WORK EVERYWHERE SAYS WALTER ZELMAN THE LEADER OF ONE OF THE WORKING GROUPS ADVISING THE WHITE HOUSE'S HEALTHCARE TASK FORCE TO DEAL WITH THIS THE PRESIDENT'S HEALTHCARE ADVISERS ARE LOOKING TO PROMOTE THE ALTERNATIVE SYSTEM MANAGED COOPERATION UNDER THIS PLAN A RURAL HOSPITAL WITH SAY TWO PHYSICIANS WOULD PROVIDE PRIMARYCARE SERVICES TO THE COMMUNITY ALL PATIENTS WHO COME TO THE HOSPITAL OR THE DOCTORS' OFFSITE OFFICES WOULD BE GUARAN TEED THAT BASIC LEVEL OF CARE TO CUT OVERHEAD EXPENSES THE DOCTORS WOULD BE ENCOURAGED TO FORGE A RELATIONSHIP IN WHICH THEY MIGHT SHARE STAFF AND BILLING SYSTEMS AS WELL AS REDUCE THE HOURS BOTH ARE ON CALL BEYOND THAT THE HOSPITAL AND PHYSICIANS WOULD DEVELOP FORMAL LINKAGES WITH OTHER LARGER FACILITIES CAPABLE OF OFFERING MORESPECIALIZED HEALTH SERVICES THESE WOULD BE LOCATED IN BIGGER TOWNS OR PERHAPS A NEARBY CITY IT'S A HUBANDWHEEL SCENARIO MR MOSCOVICE SAYS BUT WHILE THIS ARRANGEMENT ALREADY BEING TESTED THROUGH ONE FEDERAL PROGRAM SHOULD REDUCE ADMINISTRATIVE COSTS IT DOESN'T CREATE THE KIND OF COMPETITION THAT ECONOMISTS SAY WILL SURELY DRIVE DOWN PRICES AS A RESULT MORE REGULATION WOULD CLEARLY BE NECESSARY TO KEEP PRICES UNDER CONTROL IN MANY RURAL AREAS ONE FEAR IS THAT THIS HEAVY REGULATORY HAND COULD BACKFIRE PROMPTING PHYSICIANS AND OTHER PROVIDERS TO LEAVE THEIR RURAL PRACTICES THEREBY JEOPARDIZING ACCESS TO CARE FOR RURAL RESIDENTS IN UNDERSERVED AREAS ACCORDING TO MR MOSCOVICE'S PAPER FOR ALL THE ADJUSTMENTS THAT NEED TO BE MADE TO MANAGED COMPETITION MR MOSCOVICE AND OTHERS STRESS THAT THE ADMINISTRATION'S FUNDAMENTAL STRATEGY SHOULD BRING MANY BENEFITS TO RURAL LOCATIONS MOST IMPORTANT EVERYONE WOULD BE GUARANTEED HEALTH COVERAGE A BIG PLUS GIVEN THAT THE 27 OF AMERICANS WHO LIVE IN RURAL AREAS ARE DISPROPORTIONATELY POOR AND ELDERLY OTHERS NOTE THAT AN ADEQUATE AMOUNT OF COMPETITION CAN BE GENERATED IN MANY AREAS LABELED RURAL ESPECIALLY WHEN THEY EASILY FEED INTO URBAN CENTERS THERE'S A MISIMPRESSION THAT YOU NEED COMPETING HOSPITALS ACROSS THE STREET FROM EACH OTHER LIKE GAS STATIONS SAYS REP JIM COOPER D TENN THE LEADING SPONSOR OF A MANAGEDCOMPETITION BILL IN CONGRESS REGARDLESS OF WHETHER COMPETITION OR COOPERATION IS BEST FOR A COMMUNITY MOST RURAL AREAS STILL HAVE ANOTHER HUGE HURDLE TO OVERCOME GETTING DOCTORS HOSPITALS AND OTHER HEALTH PROVIDERS TO LOCATE THERE IN THE FIRST PLACE FOR RURAL RESIDENTS THE REAL PROBLEM IS NOT HIGH COST BUT ACCESS SAYS PAUL ELLWOOD THE LEADER OF THE JACKSON HOLE WYO GROUP THAT DREAMED UP MANAGED COMPETITION TO HELP SOLVE THAT THE ADMINISTRATION IS THINKING OF OFFERING INCENTIVES FOR MEDICAL SCHOOLS TO TRAIN STUDENTS WHO COME FROM RURAL AREAS IN THE HOPE THAT THEY'LL RETURN HOME AFTER GRADUATION MEANWHILE TO INDUCE HOSPITALS CLINICS AND OTHER PROVIDERS TO MOVE INTO THESE AREAS THE ADMINISTRATION IS CONSIDERING OTHER CARROTS AND STICKS ONE IDEA IS TO PAY A SUBSIDY TO THOSE THAT COME INTO RURAL AREAS ANOTHER OPTION IS TO GUARANTEE AN EXCLUSIVE FRANCHISE TO A HEALTH PLAN THAT SERVES AN OUTLYING LOCATION STILL ANOTHER POSSIBILITY IS TO MANDATE THAT A HEALTH PLAN SERVE A RURAL AREA IF IT WANTS TO RETAIN ITS MORELUCRATIVE URBANBASED BUSINESS ULTIMATELY THE STATES AND LOCALITIES MAY GET TO PICK WHICH OPTION IS BEST FOR THEM THE TASK FORCE IS GOING TO ALLOW A LOT OF FLEXIBILITY VOWS DENISE DENTON WHO IS ON LEAVE AS THE DIRECTOR OF RURAL HEALTH FOR COLORADO TO HELP WITH THE WHITE HOUSE EFFORT IT WOULDN'T BE VERY WISE TO SIT HERE IN WASHINGTON AND TRY TO COME UP WITH ONE IDEA THAT'S SUPPOSED TO WORK EVERYWHERE SEE RELATED ARTICLE WHILE SOME POOR URBAN RESIDENTS ASK IF ANYONE AT ALL WILL SERVE THEM WSJ APRIL 16 1993 9304190152 930419 POLITICS & POLICY CLINTON'S INITIATIVES ON HEALTH CARE AND TAXES INSPIRE STATES TO ENACT PROGRAMS OF THEIR OWN BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHILE THE CLINTON ADMINISTRATION'S POLICY WONKS DEBATE HOW TO ENACT SWEEPING HEALTH CARE AND ECONOMIC REFORMS MANY STATE LEGISLATURES ARE DOING IT CALL IT AN AURA EFFECT THE POWER OF SUGGESTION OR MAYBE JUST A CALCULATED EFFORT BY STATES TO FASHION THEIR OWN PROGRAMS IN ADVANCE OF THOSE THE FEDS ARE EXPECTED TO IMPOSE WHATEVER THE REASON BILL CLINTON'S ELECTION HAS SET OFF A FLURRY OF HEALTH REFORMS ENERGY LEVIES AND SIN TAXES AT THE STATE LEVEL THE CONTAGION IS MOST PROMINENT IN THE HEALTH CARE AREA TWO WEEKS AGO GOV NED MCWHERTER OF TENNESSEE JUMPED OFF A POLITICAL CLIFF AND UNVEILED WHAT HE CONSIDERS TO BE THE MOST RADICAL HEALTH CARE PLAN IN AMERICA PIECES OF THE 13 BILLION PLAN WHICH WOULD WITHDRAW THE STATE FROM THE FEDERAL MEDICAID SYSTEM AND POOL FEDERAL MONEY AND OTHER RESOURCES TO COVER 500000 UNINSURED TENNESSEANS HAVE BEEN GESTATING IN TENNESSEE FOR YEARS THE STIMULUS FOR PUSHING THE PLAN THIS YEAR SAYS GOV MCWHERTER CAME FROM THE WHITE HOUSE FROM THE STANDPOINT OF HELPING ME GET MY COURAGE UP TO MAKE THIS RECOMMENDATION YES YOU CAN SAY BILL CLINTON CONTRIBUTED TO THAT HE EXPLAINS ON THE OTHER SIDE OF THE COUNTRY GOV MIKE LOWRY OF WASHINGTON WAS PROWLING THE CORRIDORS OF HIS LEGISLATURE MAKING SURE THERE WERE ENOUGH VOTES TO RAM THROUGH HIS STATE'S 478 MILLION HEALTH CARE PROGRAM WE'VE GOT MANAGED COMPETITION AND WE'VE GOT THE CAPS ON HEALTH INSURANCE PREMIUMS ALL THE STUFF THEY'RE TALKING ABOUT IN WASHINGTON THE GOVERNOR EXPLAINED TO A VISITOR AND HEALTH CARE REFORMS AREN'T THE ONLY CLINTONINSPIRED CHANGES GAINING POPULARITY IN STATE CAPITOLS EXCISE TAX INCREASES INCLUDING SOME SOCALLED SIN TAXES ARE BEING DEBATED IN WASHINGTON AS ONE WAY TO FINANCE THE CLINTON HEALTH CARE PROGRAM BUT SOME STATES ARE WRITING SUCH TAXES INTO LAW ENERGY TAXES AND WELFARE REFORM ALSO SEEM TO HAVE SLID ONTO STATE LEGISLATIVE CALENDARS AFTER THE CLINTON TEAM PUT THEM ON THE NATIONAL AGENDA I THINK WE'RE SEEING WHAT WE IN THE FOUNDATION WORLD CALL A BROCHURE EFFECT' YOU PUT SOMETHING ON THE TABLE AND SOME STATES SAY IT LOOKS GOOD WE'RE GOING TO TRY IT OTHER STATES SEE IT AND TRY TO ADOPT A DIFFERENT PLAN BEFORE THE FEDERAL GOVERNMENT IMPOSES ONE ON THEM EXPLAINS NANCY BARRAND A PROGRAM OFFICER AT THE ROBERT WOOD JOHNSON FOUNDATION A PRIVATE PHILANTHROPY THAT IS HELPING TO FINANCE HEALTH CARE PROGRAMS AT THE STATE LEVEL THE QUESTION NOW IS WHAT FLEXIBILITY WILL WASHINGTON GIVE THEM TO IMPLEMENT ALL THIS SHE ADDS THAT IS A QUESTION ALSO FACING MARYLAND AND FLORIDA WHICH HAVE ALSO JUST PASSED AMBITIOUS HEALTH CARE BILLS MEANWHILE AT LEAST 18 OTHER STATES ARE CONSIDERING SUCH PROGRAMS HOW AND WHETHER THE CLINTON PLAN WOULD MESH WITH THEM IS ONE OF THE MANY DETAILS THE WHITE HOUSE TASK FORCE ON HEALTH CARE IS TRYING TO SORT OUT WHEN IT COMES TO PAYING FOR A NEW HEALTH CARE SYSTEM CLINTON PLANNERS ARE CONSIDERING SOCALLED SIN TAXES ON ALCOHOL AND TOBACCO AND TO THE DISMAY OF THE DISTILLED SPIRITS COUNCIL WHICH REPRESENTS PRODUCERS AND IMPORTERS OF LIQUOR 19 STATE LEGISLATURES ARE ALSO CONSIDERING TAX INCREASES ON BOOZE WE HAVEN'T SEEN THAT MANY IN ONE YEAR EXPLAINS ELIZABETH BOARD A SPOKESWOMAN FOR THE COUNCIL HER THEORY IS THAT THE STATES WANT TO GET THEIR TAXES IN FIRST BEFORE THE FEDS MOVE ANOTHER CLINTON PROPOSAL THE ENERGY TAX HAS CAUGHT ON AT THE STATE LEVEL SINCE THE NEW ADMINISTRATION TARGETED ENERGY LEVIES AS A WAY TO SHRINK THE FEDERAL DEFICIT FOUR STATES HAVE RAISED THEIR GASOLINE TAXES AND FIVE OTHERS ARE CONSIDERING IT THIS IS NOT JUST AN AURA EFFECT FROM WASHINGTON EXPLAINS NEIL GRAY DIRECTOR OF GOVERNMENT RELATIONS FOR THE HIGHWAY USERS FEDERATION THERE'S A REAL INCENTIVE FOR THE STATES TO TRY AND GET IN THERE FIRST WITH SO MUCH ATTENTION GOING TO THE CLINTON ECONOMIC PACKAGE AND THE HEALTH CARE PLAN WELFARE REFORM IS STILL A DISTANT GLIMMER IN THE NATION'S CAPITAL BUT DURING HIS CAMPAIGN MR CLINTON VOWED TO CHANGE THE NATION'S WELFARE SYSTEM TO LIMIT DEPENDENCY TO TWO YEARS AND THAT HAS HELPED SPUR LEGISLATURES IN FLORIDA COLORADO AND VIRGINIA TO PASS SOCALLED TIMELIMITED WELFARE RULES EVERYBODY SCRAMBLES AROUND TO TRY TO ANTICIPATE WHAT'S GOING TO BE ON THE FEDERAL AGENDA EXPLAINS CANDACE ROMIG AN ANALYST FOR THE NATIONAL CONFERENCE OF STATE LEGISLATURES WHO CLOSELY FOLLOWS WELFARE LEGISLATION SOME OF THEM THINK THAT WILL ALLOW THEM TO GET A MORE RELAXED WAIVER FROM FEDERAL REGULATIONS THE RESPONSE IS NOT QUITE AS KNEEJERK AS IT SOUNDS PRESIDENT CLINTON WAS AN ACTIVE MEMBER OF THE NATIONAL GOVERNORS' ASSOCIATION FOR YEARS AND MANY OF HIS THEMES FOR NATIONAL PROGRAMS WERE DRAWN FROM THE BEST IDEAS BEING KICKED AROUND AT THE STATE LEVEL ACCORDING TO RAE BOND A SPOKESWOMAN FOR THE ASSOCIATION SHE PREDICTS MR CLINTON WILL IGNITE A SIMILAR FLURRY OF ACTIVITY AMONG THE STATES WHEN HE BEGINS TO FOCUS ON EDUCATION PROGRAMS AND SOME OF THE CAUSEANDEFFECT IS AN ILLUSION CREATED BY THE OVERWHELMING FOCUS OF THE NEWS MEDIA ON WASHINGTON ASSERTS GARY BURTLESS A SPECIALIST ON SOCIAL WELFARE POLICY AT THE BROOKINGS INSTITUTION GOOD REPORTERS ARE OFTEN ASSIGNED TO WASHINGTON AND THUS A LOT OF ATTENTION IS FOCUSED ON WASHINGTON BUT A LOT OF ACTIVITY THAT REALLY HAS PROFOUND INFLUENCE ON PEOPLE'S WAY OF LIFE IS BASICALLY TAKEN AT THE STATE CAPITOL BUT WHATEVER THE CAUSE THE INNOVATIVE POLICY SCRAMBLING GOING ON AT THE STATE LEVEL IS NOT JUST ANOTHER MANIFESTATION OF MADISONIAN DEMOCRACY AT WORK STATES ARE RUNNING SCARED BECAUSE THE LAST BIG FEDERAL HEALTH CARE PROGRAM TO COME DOWN THE PIKE MEDICAID HAS BECOME AN ALL BUT UNWORKABLE SNARL OF FEDERALLY IMPOSED MANDATES ON THE STATES ARGUES MOLLY HERING LEGISLATIVE DIRECTOR OF THE AMERICAN LEGISLATIVE EXCHANGE COUNCIL THE GROUP REPRESENTS STATE LEGISLATURES IN WASHINGTON NOW CLINTON'S GOING AHEAD WITH MANAGED COMPETITION THIS HAS NOT BEEN TRIED ANYWHERE IN THE WORLD SHE SAYS THE STATES OF WASHINGTON AND FLORIDA ARE GOING AHEAD WITH THIS THIS TYPE OF IDEA SHOULD BE TRIED AT THE STATE LEVEL FIRST IF IT IS ENACTED AND FAILS AT THE NATIONAL LEVEL IT WOULD BE IMPOSSIBLE TO DISMANTLE IT WOULD BE A HUGE BURDEN ON OUR ECONOMY ONE THING SEEMS CLEAR IF THE POLICY DEBATE IN WASHINGTON DRAGS ON TOO LONG ONE UNINTENDED BENIFICIARY OF THE EMERGING CRAZY QUILT OF STATE PLANS AND FINANCING SCHEMES MAY BE BOOTLEGGERS WIDESPREAD CIGARETTE SMUGGLING HAS ALREADY BEGUN IN THE NORTHWEST BECAUSE CANADIAN TAXES TO SUPPORT VARIOUS SOCIAL PROGRAMS HAVE JACKED CIGARETTE PRICES UP TO ALMOST 5 A PACK NOW WASHINGTON STATE'S HEALTH PLAN WILL ADD 40 CENTS A PACK THERE ENCOURAGING SMUGGLERS TO MOVE EAST AND SOUTH A SIMILAR PATTERN OF MOVEMENT IS EMERGING IN NEW ENGLAND WHERE TAX INCREASES IN CONNECTICUT MASSACHUSETTS AND RHODE ISLAND APPEAR TO BE PUSHING UP CIGARETTE SALES IN VERMONT AND NEW HAMPSHIRE 9304190151 930419 HONG KONG EMPLOYMENT HONG KONG HONG KONG'S MANUFACTURINGSECTOR EMPLOYMENT IN DECEMBER 1992 DECLINED 102 FROM A YEAR EARLIER WHILE THAT IN THE SERVICE SECTOR WAS ON THE RISE ACCORDING TO OFFICIAL FIGURES RELEASED FRIDAY THE NUMBER OF PEOPLE EMPLOYED IN MANUFACTURING TOTALED 565100 IN DECEMBER DOWN FROM THE YEAREARLIER'S 629200 A GOVERNMENT SPOKESMAN ATTRIBUTED THE FALL TO THE ECONOMY'S STRUCTURAL CHANGE AND THE RELOCATION OF INDUSTRIAL ACTIVITIES TO CHINA DURING THE PERIOD EMPLOYMENT IN THE CONSTRUCTION SECTOR WAS UP 03 TO 59500 AND THAT IN THE WHOLESALE RETAIL AND IMPORT/EXPORT TRADE AND THE HOTEL INDUSTRY WAS UP 49 TO 914800 ON THE YEAR EMPLOYMENT IN THE FINANCIAL SERVICE SECTOR ROSE 63 FROM A YEAR AGO TO 314500 JOB VACANCIES IN THE MANUFACTURING SECTOR FELL 23 TO 17690 IN DECEMBER 1991 AND 76 IN SEPTEMBER 1992 9304190150 930419 PHILIPPINE TRADE DEFICIT MANILA THE PHILIPPINES THE PHILIPPINES' TRADE DEFICIT NARROWED 83 IN FEBRUARY TO 365 MILLION FROM 398 MILLION IN JANUARY THE NATIONAL STATISTICS OFFICE REPORTED THE OFFICE SAID EXPORTS IN FEBRUARY AT 817 MILLION REGISTERED A 4 IMPROVEMENT FROM THE PREVIOUS MONTH BUT IMPORTS HAD A FLAT PERFORMANCE AT 118 BILLION 9304190149 930419 WHO'S NEWS MACMILLAN LTD MACMILLAN LTD UK SALLY RICHARDSON 51 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSTS OF PRESIDENT OF THE TRADE AND MASS MARKET DIVISIONS AND PUBLISHER OF THE TRADE DIVISION AT ST MARTIN'S PRESS AN IMPRINT OF ST MARTIN'S PRESS INC EFFECTIVE MAY 1 SHE ALSO RETAINS THE TITLE OF SENIOR VICE PRESIDENT OF ST MARTIN'S PRESS INC 9304190148 930419 CANADIAN TRADE SURPLUS OTTAWA CANADA'S TRADE SURPLUS NARROWED TO 112 BILLION CANADIAN DOLLARS US890 MILLION IN FEBRUARY FROM C197 BILLION IN JANUARY STATISTICS CANADA A GOVERNMENT AGENCY SAID EXPORTS DECLINED 15 TO C1440 BILLION FROM C1462 BILLION IN JANUARY IMPORTS ROSE 49 TO C1328 BILLION FROM C1266 BILLION THE US TOOK 815 OF CANADA'S EXPORTS IN FEBRUND SUPPLIED 718 OF CANADA'S IMPORTS 9304190146 930419 WHO'S NEWS DYERSBURG CORP DYERSBURG CORP DYERSBURG TENN JAMES S PAINE THE 43YEAROLD FORMER MARKETING DIRECTOR OF MALDEN MILLS INDUSTRIES WAS NAMED TO THE NEW POST OF EXECUTIVE VICE PRESIDENT OF THE FABRIC COMPANY 9304190145 930419 ENTERPRISE FOCUS ON FRANCHISING FRANCHISER CONTESTS ROLE IN COLLAPSE OF MUPPET CHAIN BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL DID MUPPET MASTERS STRING ALONG A FRANCHISE SYSTEM IN THE LATE 1980S CANADIAN BUSINESSMAN LORNE SOLISH GAINED THE US AND CANADIAN RIGHTS TO FRANCHISE MUPPET STUFF BOUTIQUES WHICH FEATURED PRODUCTS INSPIRED BY JIM HENSON PRODUCTIONS INC'S CELEBRATED PUPPETS WITH THE CREATOR OF KERMIT THE FROG BEHIND HIM MR SOLISH LOOKED FORWARD TO A BRIGHT FUTURE BUT THAT CHANGED FAST HIS ATTORNEYS SAY WHEN HENSON PRODUCTIONS ENTERED ABORTIVE MERGER NEGOTIATIONS WITH WALT DISNEY CO IN 1989 INSTEAD OF PROSPERING THE FRANCHISE OPERATION COLLAPSED NOW MR SOLISH IS INVOLVED IN LAWSUITS THAT PROVE IF NOTHING ELSE THAT EVEN THE MUPPETS' ALLURE CAN'T GUARANTEE FRANCHISING RICHES A LAWSUIT FILED BY FUZZY FRIENDS INC IN A CALIFORNIA STATE COURT ALLEGES THAT HENSON PRODUCTIONS MR SOLISH AND HIS MAST CORP FAILED TO ENSURE THAT PROMISED PRODUCTS AND ASSISTANCE WERE DELIVERED FUZZY WHICH OPERATED A MUPPET STUFF OUTLET IN LOS ANGELES FOR MORE THAN TWO YEARS AND HAD AGREED TO DEVELOP 10 OUTLETS CLOSED IN 1992 BUT MAST MAINTAINS IN LAWSUITS THAT ANY BLAME SHOULD FALL ON HENSON PRODUCTIONS AND DISNEY INDEED MAST AND A SISTER COMPANY ARE SUING HENSON FOR DAMAGES IN A NEW YORK STATE COURT THEY ARE ALSO TRYING TO RENEW RELATED CHARGES THERE AGAINST DISNEY THAT WERE DISMISSED EARLIER MAST CLAIMED THAT DISNEY WANTED TO BUY OUT MAST'S INTEREST IN THE FRANCHISE OPERATION AS A PRELUDE TO ACQUIRING HENSON PRODUCTIONS THEREFORE MAST ALLEGES HENSON AND DISNEY WORKED TOGETHER TO DEPRESS THE VALUE OF MUPPET STUFF FRANCHISES FOR INSTANCE HENSON AND DISNEY ALLEGEDLY HINDERED THE FLOW OF NEW PRODUCTS TO FRANCHISEES WHAT DESTROYED FUZZY FRIENDS DESTROYED MY CLIENT TOO SAYS STEPHEN D DAVIS A CHICAGO LAWYER FOR MAST THIS MONTH HENSON ASKED FOR A STAY IN THE CALIFORNIA CASE PENDING THE OUTCOME IN NEW YORK CAROL F SIMKIN A NEW YORK LAWYER FOR HENSON CALLS MAST'S CHARGES RIDICULOUS SHE SAYS MAST PERFORMED POORLY AS A FRANCHISER BECAUSE OF ECONOMIC CONDITIONS AND ITS OWN MISTAKES IN A COUNTERCLAIM HENSON ASKS DAMAGES ALLEGING THAT MAST MISREPRESENTED ITS CAPABILITIES AND FAILED TO CARRY OUT A FIVEYEAR PLAN FOR A US CHAIN OF 50 MUPPET STUFF STORES A NEW YORK ATTORNEY FOR DISNEY WHICH ENJOYS CERTAIN RIGHTS TO THE MUPPETS UNDER LICENSES DECLINED TO COMMENT DISGRUNTLED FRANCHISEES TRY TO GET A WHITE HOUSE FELLOW FIRED SHOWING HOW RELENTLESS AGGRIEVED FRANCHISEES CAN BE CALIFORNIANS TIMOTHY M MALONE AND ANDREW LIEN HAVE DONE A LOT MORE THAN SIMPLY SUE INFOPLAN INTERNATIONAL INC A NOWINACTIVE FRANCHISER OF MARKETRESEARCH SERVICES FOR STARTERS OF COURSE THEY DID SUE THE TUCSON ARIZ COMPANY THEY ALLEGED THIS MONTH IN FEDERAL COURT IN TUCSON THAT INFOPLAN AND FOUNDER MICHAEL J WING AMONG OTHERS HAD MISREPRESENTED THE FRANCHISER'S CAPABILITIES AND FINANCES BUT IN ADDITION THE PLAINTIFFS HAVE ALSO COMPLAINED TO THE FEDERAL TRADE COMMISSION THE ARIZONA ATTORNEY GENERAL THE PIMA COUNTY ATTORNEY THE US POSTAL SERVICE AND OTHERS SAYS GARY A WOLF A TUCSON LAWYER FOR THE PLAINTIFFS ON TOP OF ALL THAT MR MALONE IN SAN DIEGO SAYS HE HAS COMPLAINED TO THE WHITE HOUSE FELLOWSHIP PROGRAM THROUGH THE PROGRAM MR WING LAST SEPTEMBER BEGAN A STINT AS A FEDERAL COMMUNICATIONS COMMISSION SPECIAL ASSISTANT IN WASHINGTON MR WING'S CRITICS SAY THE ENTREPRENEUR LEFT FOR WASHINGTON WITH HIS COMPANY IN CRISIS THEY SAY THIS LEFT FRANCHISEES EQUITY INVESTORS AND EMPLOYEES IN THE LURCH WHITE HOUSE PERSONNEL MANAGERS ARE INQUIRING INTO FRANCHISEES' CHARGES THAT THE 33YEAROLD MR WING IS UNFIT FOR THE PRESTIGIOUS FELLOWSHIP SAYS BROOKE SHEARER WHO DIRECTS THE PROGRAM MR WING CALLS THE INQUIRY STANDARD PROCEDURE AND EXPECTS TO BE VINDICATED I'D LIKE JUSTICE MR MALONE SAYS HE SAYS HIS FRANCHISE NEVER FOUND ANY CLIENTS THOUGH INFOPLAN HAD CLAIMED TO HAVE A PROVEN BUSINESS CONCEPT HE ASKS DAMAGES OF MORE THAN 100000 IN THE SUIT MR WING SAYS INFOPLAN INVESTED HEAVILY TO AID ITS 10 FRANCHISEES HIS FRANCHISE CONCEPT WAS SOUND BUT HE MADE THE MISTAKE OF CHOOSING FRANCHISEES UNWISELY HE SAYS HE CONTENDS THAT MR MALONE NEVER WORKED HARD ENOUGH TO MAKE A GO OF HIS FRANCHISE THE PLAINTIFFS HAVE ENGAGED IN INCESSANT HARASSMENT AND PERSECUTION OF HIM MR WING ASSERTS HE SAYS HE WELCOMES THE COURT CASE AS AN OPPORTUNITY TO REFUTE THE CHARGES WILL POT SHOTS AT A LEGISLATOR BACKFIRE ON A TRADE GROUP COMMENTS BY WILLIAM B CHERKASKY PRESIDENT OF THE INTERNATIONAL FRANCHISE ASSOCIATION HAVE STUNNED SOME FOLLOWERS OF THE FRANCHISER GROUP IN RECENT MONTHS THE IFA HAS BEEN TRYING TO IMPROVE RELATIONS WITH REP JOHN J LAFALCE D NY WHO LAST YEAR VOWED A HOLY CRUSADE AGAINST FRANCHISING ABUSES IFA LOBBYIST GIL THURM VISITED THE HOUSE SMALL BUSINESS COMMITTEE CHAIRMAN IN FEBRUARY ON A PEACEMAKING MISSION BUT MR CHERKASKY'S COMMENTS ARE NO WAY TO MAKE PEACE SAY SOME PEOPLE CLOSE TO FRANCHISERS ACCORDING TO RESTAURANT BUSINESS MAGAZINE LAST MONTH MR CHERKASKY PREDICTED THAT MR LAFALCE WILL NEVER GET LEGISLATIVE COSPONSORS FOR HIS FRANCHISING BILLS BECAUSE HE'S NOT A LIKABLE GUY AND SAID THAT A HOUSE AIDE HAS LED REP LAFALCE DOWN THE PRIMROSE PATH ON FRANCHISING ACCORDING TO THE MAGAZINE HE ALSO SAID OF A LAFALCE PROPOSAL I DON'T KNOW HOW WE CAN PROTECT AGAINST STUPIDITY WERE THE COMMENTS IMPOLITIC I DON'T THINK YOU GAIN ANYTHING BY PERSONAL ATTACKS SAYS HOWARD J RUBENSTEIN A NEW YORK PUBLICRELATIONS EXECUTIVE WHOSE AGENCY HANDLED SOME IFA WORK LAST YEAR SOONER OR LATER THAT BACKFIRES ON YOU TERRIE DORT EXECUTIVE DIRECTOR OF THE NATIONAL COUNCIL OF CHAIN RESTAURANTS SAYS THE ANIMOSITY BETWEEN THE IFA PRESIDENT AND THE CONGRESSMAN MAKES HER WONDER HOW AN ACCEPTABLE COMPROMISE CAN BE REACHED STILL ALL MAY NOT BE LOST A MCDONALD'S CORP SPOKESMAN IN OAK BROOK ILL SAYS THAT DESPITE MR CHERKASKY'S REMARKS HIS COMPANY SEES A MUCHIMPROVED WORKING RELATIONSHIP THIS YEAR BETWEEN THE IFA STAFF AND REP LAFALCE MR CHERKASKY DECLINED TO COMMENT ON THE BROUHAHA BUT AN IFA SPOKESMAN CALLS THE RESTAURANT BUSINESS REPORT A BUNCH OF SILLINESS NOT APPROPRIATE FOR MEDIA COVERAGE REP LAFALCE WHO HAS BEGUN SEEKING COSPONSORS FOR HIS BILLS SAYS ONLY THAT HE DOESN'T WANT PERSONALITY ISSUES TO TAINT THE DEBATE 9304190144 930419 NORTHWEST REDUCES FARES UP TO 35 ON SOME ROUTES MINNEAPOLIS NORTHWEST AIRLINES SAID IT CUT FARES ON DOMESTIC AND SOME TRANSATLANTIC ROUTES BY AS MUCH AS 35 THOUGH HEAVY RESTRICTIONS APPLY AND THE PRICES ARE ONLY GOOD ON TICKETS BOUGHT BY APRIL 23 THE FARES ONLY RUN THROUGH JUNE 30 THE UNIT OF WINGS HOLDINGS INC SAID BEFORE THE HEAVY SUMMER TRAVEL SEASON BEGINS DEPARTURES ON MANY OF THE DISCOUNTED ROUTES MUST BE TUESDAY THROUGH THURSDAY A SPOKESMAN SAID 9304190143 930419 GLOBAL VIEW BR'ER MIYAZAWA IN THE KEYNESIAN BRIAR PATCH BY GEORGE MELLOAN THAT OLD FOX BR'ER LLOYD BENTSEN THREW BR'ER KIICHI MIYAZAWA INTO THE BRIAR PATCH LAST WEEK BUT LIKE THE BR'ER RABBIT OF AMERICAN FOLK LEGEND THAT WAS JUST WHAT THE JAPANESE PRIME MINISTER WANTED PROTESTATIONS TO THE CONTRARY HE WENT HOPPING MERRILY AWAY TO DO WHAT BR'ER FOX DEMANDED SPEND MORE PUBLIC MONEY POLITICIANS LOVE THAT KIND OF BRIAR PATCH INDEED WHAT JAPAN CAME UP WITH LAST WEEK MIGHT BE CALLED THE MOTHER OF ALL STIMULUS PACKAGES NO MEASLY LITTLE 16 BILLION JOBS BILLS FOR MR MIYAZAWA JAPAN UNVEILED A GOVERNMENT SPENDING PACKAGE THAT IT CLAIMED AMOUNTED TO 117 BILLION THAT'S ON TOP OF A MONSTER 90 BILLION STIMULUS PLAN ANNOUNCED ONLY EIGHT MONTHS AGO ONE HAS TO KEEP IN MIND THAT THE JAPANESE EXAGGERATE THEIR STIMULUS EFFORTS TO MAKE THE MAXIMUM IMPRESSION ON MR BENTSEN AND OTHER AMERICANS WHO BELIEVE THAT IF THE JAPANESE GOVERNMENT WILL JUST SPEND MORE IT WILL SOMEHOW ERASE THE ENORMOUS JAPANESE TRADE SURPLUS THE JOURNAL'S CLAY CHANDLER AND JOHN BUSSEY REPORTED FROM TOKYO LAST WEEK THAT THE CONSENSUS ESTIMATE OF LOCAL ECONOMISTS IS THAT THE LATEST PACKAGE WILL BUY ABOUT 53 BILLION IN ACTUAL STIMULUS IF YOU BELIEVE IN STIMULUS PACKAGES AS A CUREALL FOR RECESSION EVEN 53 BILLION ISN'T PEANUTS BUT IT IS WORTH NOTING THAT THE PUMP PRIMING OF LAST AUGUST DOESN'T SEEM TO HAVE BOUGHT MUCH ECONOMIC GROWTH SO FAR IN THE LAST TWO QUARTERS OF 1992 JAPAN HAS HAD NEGATIVE GROWTH WHICH BY US MEASUREMENTS AMOUNTS TO A RECESSION ALTHOUGH THE GOVERNMENT STILL COMES UP WITH ROSY SCENARIOS FOR THE SECOND HALF OF THE FISCAL YEAR THAT BEGAN THIS MONTH THE VIEW OF SOME PRIVATE ECONOMISTS IS LESS OPTIMISTIC MAYBE THE STIMULUS JUST HASN'T WORKED YET OR MAYBE IT NEVER WILL BUT MR MIYAZAWA AND HIS LIBERAL DEMOCRATIC PARTY LDP ARE NOT DOWNHEARTED WHATEVER A STIMULUS PACKAGE MIGHT DO FOR AN ECONOMY THERE IS LITTLE DOUBT ABOUT WHAT IT CAN DO FOR POLITICS MUCH LIKE BILL CLINTON'S JOBS PORK BARREL FOR AMERICA'S URBAN POLITICOS THE JAPANESE PROGRAMS WITH THEIR EMPHASIS ON ROADS BRIDGES AND PUBLIC BUILDINGS WILL BE REWARDING TO THOSE GREAT FRIENDS OF JAPANESE POLITICIANS CONSTRUCTION CONTRACTORS IT ALSO MAY GIVE A BOOST TO THE REAL ESTATE MARKET THUS AIDING THE SHAKY BALANCE SHEETS OF JAPANESE BANKS AT A TIME WHEN THE LDP IS NOT FARING WELL WITH JAPAN'S VOTERS SPREADING ADDITIONAL PUBLIC MONEY AROUND IS PRACTICALLY A REFLEX ACTION FOR THE PARTY'S LEADERS BRITISH ECONOMIST JOHN MAYNARD KEYNES IS USUALLY CREDITED WITH THE INVENTION OF FISCAL STIMULUS HAVING RECOMMENDED IT AS AN ANTIDOTE TO THE GREAT DEPRESSION THERE IS SOME EVIDENCE THAT LORD KEYNES HIMSELF BEGAN TO WONDER IN THE 1940S IF HE HAD CREATED A MONSTER BECAUSE HIS THEORIES GAVE GOVERNMENTS EVERYWHERE AN INTELLECTUAL RATIONALE FOR DOING WHAT THEY LIKE TO DO BEST TAX AND SPEND THEY LIKE TO DO IT BECAUSE THE ADROIT TARGETING OF SPENDING SO OFTEN SUCCEEDS IN BUILDING POLITICAL SUPPORT THE FUNDAMENTAL POLITICAL MISTAKE OF GEORGE BUSH WAS THAT HE ALLOWED CONGRESSIONAL DEMOCRATS TO MANEUVER HIM INTO A POSITION WHERE THEY GOT CREDIT FOR THE PORK AND THE PRESIDENT GOT THE BLAME FOR THE TAXES AND DEFICITS BUT NOW THAT NEOKEYNESIANISM HAS REESTABLISHED ITSELF IN BOTH THE US AND JAPAN LET'S GET BACK TO THAT BRIAR PATCH THE FUNDAMENTAL ASSUMPTION OF STIMULUS PACKAGES IS THAT GOVERNMENT HAS THE POWER TO CREATE JOBS AND WEALTH BY EXERCISING ITS POWERS TO TAX AND BORROW THEN PUTTING THE MONEY IT TAKES OUT OF THE ECONOMY BACK IN IN A TRUE DEPRESSION WHERE THERE ARE LARGE NUMBERS OF UNEMPLOYED SKILLED WORKERS AND THE GOVERNMENT CAN BORROW HEAVILY WITHOUT INFLATIONARY CONSEQUENCES THE SITUATION THAT KEYNES HIMSELF HAD IN MIND THERE MIGHT BE SOME VALIDITY TO THAT THESIS THE ECONOMIC CONSEQUENCES OF 1930S PUMP PRIMING STILL ARE SUBJECT TO DEBATE BUT IN MODERN ECONOMIES THAT ARE SUFFERING ONLY A CYCLICAL RECESSION THE FUNDAMENTAL ISSUE OF ECONOMIC EFFICIENCY GAINS ENORMOUS IMPORTANCE THE QUESTION THEN BECOMES WHETHER A GOVERNMENT CAN EMPLOY THE MONEY MORE EFFICIENTLY THAN THE PRIVATE CITIZENS FROM WHOM IT EXTRACTS THE MONEY THAT IS FAR MORE PROBLEMATICAL TODAY THAN IT WAS IN THE 1930S THE MEANS THROUGH WHICH THE PRIVATE SECTOR ORGANIZES AND ACCOMPLISHES WORK TODAY ARE FAR MORE SOPHISTICATED AND EFFICIENT THAN THEY WERE IN THE 1930S THE MEANS THROUGH WHICH THE GOVERNMENT ORGANIZES WORK PROBABLY ARE EVEN LESS EFFICIENT BY VIRTUE OF THE ENORMOUS BUREAUCRACIES THAT NOW CHARACTERIZE THE GOVERNMENTS OF INDUSTRIAL POWERS CONSTRUCTION FOR EXAMPLE MAKES HEAVY USE OF MACHINES AND SKILLED WORKERS WHICH LEAVES LITTLE ROOM FOR THE PICKANDSHOVEL CREWS THAT FEDERAL PROGRAMS EMPLOYED DURING THE 1930S EVEN IF SUCH OPPORTUNITIES EXISTED JAPAN HAS A VERY SMALL POOL OF UNEMPLOYED LABOR AND THE US DRAWS HEAVILY ON IMMIGRANTS LEGAL AND ILLEGAL FOR SWEAT LABOR OF THAT TYPE THE QUESTION OF WHETHER GOVERNMENT OR THE PRIVATE SECTOR IS MORE CAPABLE OF IMPROVING ECONOMIC EFFICIENCY THE REAL SOURCE OF ECONOMIC WEALTH IS PARAMOUNT IT IS USEFUL TO OBSERVE THAT THE US PRIVATE SECTOR HAS JUST BEEN PUT THROUGH A WRINGER BY A RECESSION IT IS EMERGING FAR MORE EFFICIENT IN TERMS OF TOTAL FACTOR PRODUCTIVITY THAN WHEN IT WENT IN INDEED THE POSITIVE FUNCTION OF A RECESSION IS TO WRING INEFFICIENCY OUT OF AN ECONOMIC SYSTEM THE SHARP BOOST IN PRODUCTIVITY DURING THE RECOVERY IS SUPPLYING MOST OF THE RECOVERY'S STEAM IN THE VIEW OF MANY ECONOMISTS YET MESSRS CLINTON AND BENTSEN PROPOSE TO TAX THE US ECONOMY'S BIGGEST PRODUCERS AND GENERATORS OF PRIVATE CAPITAL SO AS TO SPEND THE MONEY ON GOVERNMENT PROJECTS FURTHER THEY HAVE BEEN ENCOURAGING THE POLITICIANS OF JAPAN THAT OTHER GREAT ENGINE OF WORLDWIDE ECONOMIC GROWTH TO DO THE SAME THING JAPAN AT LEAST THINKS IT CAN FINANCE ITS STIMULUS WITHOUT ADDITIONAL TAXES FINANCING OF CONSTRUCTION PROJECTS WILL DEPEND HEAVILY ON GOVERNMENT BONDS AND THE HUGE POOL OF PERSONAL SAVINGS THE COUNTRY ACCUMULATES THROUGH ITS POSTAL SAVINGS SYSTEM THE IMPACT ON THE CAPITAL MARKET IS HARD TO JUDGE BUT THE PROSPECT OF HEAVY GOVERNMENT BORROWING CANNOT BE GOOD NEWS TO PRIVATE CORPORATIONS WITH FINANCING OR REFINANCING NEEDS OF MOST CONCERN TO THE JAPANESE IS THAT MR MIYAZAWA AND HIS COLLEAGUES MAY GROW TO LIKE THE KEYNESIAN BRIAR PATCH TOO WELL IF THEY ADD FURTHER BURDENS TO THE JAPANESE ECONOMY IT WILL RETARD RECOVERY IF AS SOME FEAR JAPAN IS SUFFERING FROM STRUCTURAL DEFECTS THAT GO BEYOND MERE CYCLICAL RECESSION THE COMBINATION OF AN ABORTED US RECOVERY AND A FURTHER DECLINE IN JAPAN WILL GIVE THE WORLD A GREAT DEAL MORE TO WORRY ABOUT THAN THAT JAPANESE TRADE SURPLUS THAT SO TROUBLES BR'ER FOX 9304190141 930419 MOODY'S UPGRADED MORE TAXEXEMPTS DURING FIRST QUARTER NEW YORK MOODY'S INVESTORS SERVICE INC RAISED MORE RATINGS ON MUNICIPAL BONDS THAN IT LOWERED IN THE FIRST QUARTER ALTHOUGH MOST OF ITS MUNICIPAL RATING ACTIVITY INVOLVED NO CHANGES MOODY'S SAID IT REVISED A TOTAL OF 91 MUNICIPAL ISSUE RATINGS IN THE QUARTER AFFECTING ABOUT 28 BILLION OF DEBT IT RAISED RATINGS ON 53 ISSUES TOTALING 17 BILLION AND LOWERED RATINGS ON 38 ISSUES TOTALING 11 BILLION MOODY'S ASSIGNED A TOTAL OF 2042 LONGTERM UNENHANCED RATINGS IN THE QUARTER MAKING THE PERCENTAGE OF REVISED RATINGS 44 OF THE TOTAL ENHANCED BOND ISSUES ARE THOSE WITH INSURANCE LETTERS OF CREDIT OR OTHER TYPES OF FINANCIAL GUARANTEES GENERAL OBLIGATION AND OTHER TAXSUPPORTED RATINGS CHANGES WERE NEARLY BALANCED IN NUMBER33 ISSUES WERE UPGRADED AND 32 DOWNGRADED BUT THE UPGRADES AFFECTED ONLY 472 MILLION OF DEBT WHILE DOWNGRADES AFFECTED 700 MILLION AMONG CITY AND SPECIAL DISTRICT RATING CHANGES THERE WERE 19 UPGRADES AND 12 DOWNGRADES COUNTY RATINGS CHANGES INCLUDED TWO UPGRADES AND SEVEN DOWNGRADES AND NINE SCHOOL DISTRICTS WERE UPGRADED WHILE 11 WERE DOWNGRADED REVISIONS OF REVENUE BOND RATINGS WERE FAVORABLE CONTINUING A TREND OF RECENT YEARS MOODY'S SAID TWENTY ISSUES WERE UPGRADED AFFECTING 12 BILLION AND SIX WERE LOWERED AFFECTING 396 MILLION ALL REVENUE BOND CATEGORIES EXCEPT HOUSING FINANCE HAD FAVORABLE RATING BALANCES THE OTHER CATEGORIES INCLUDE WATER/SEWER AUTHORITIES HEALTHCARE INSTITUTIONS TRANSPORTATION AUTHORITIES HIGHER EDUCATION AND PUBLIC POWER PROJECTS 9304190140 930419 REVIEW & OUTLOOK EDITORIAL ROLLING RILEY TO UNDERSTAND HOW HARD IT IS TO GOVERN LIKE A GENUINE NEW DEMOCRAT CONSIDER THE FATE OF POOR RICHARD RILEY PRESIDENT CLINTON'S EDUCATION SECRETARY HASN'T EVEN PROPOSED A BILL BUT ALREADY HE'S BEEN PUT IN HIS PLACE BY THE EDUCATION ESTABLISHMENT IT APPEARED THAT MR RILEY WOULD BE ONE OF MR CLINTON'S BETTER CABINET CHOICES AS A FORMER SOUTH CAROLINA GOVERNOR HE COULD APPRECIATE AMERICA'S DECENTRALIZED SCHOOL SYSTEM AND MANY OF THE REFORM EXPERIMENTS NOW TAKING PLACE AT THE GRASS ROOTS HE WAS ALSO A STALWART IN THE CENTRIST DEMOCRATIC LEADERSHIP COUNCIL NOW WE WONDER IF HE'S EVEN RUNNING THE DEPARTMENT THAT POWER MAY INSTEAD BELONG TO MARSHALL MIKE SMITH NOMINALLY THE NUMBER THREE MAN IN THE DEPARTMENT AS UNDERSECRETARYDESIGNATE FOR POLICY MR SMITH WORKED IN EDUCATION UNDER JIMMY CARTER BEFORE GOING TO THAT 1980S HOTBED OF STATUS QUO THINKING STANFORD UNIVERSITY NOW HE'S BACK INSIDE THE BELTWAY AS A FAVORITE OF THE TEACHERS' UNIONS A BUREAUCRATIC PRO AND A MAN BETTER INFORMED ABOUT FEDERAL POLICY THAN EITHER MR RILEY OR DEPUTY SECRETARY MADELEINE KUNIN MR SMITH'S FIRST FORAY IS A SLY BIT OF POLICY MAYHEM CALLED SCHOOL DELIVERY STANDARDS THIS IS THE HOTTEST ISSUE IN EDUCATION RIGHT NOW BECAUSE IT REPRESENTS THE ESTABLISHMENT'S ATTEMPT TO DERAIL NATIONAL STUDENT TESTING MOST FOLKS PROBABLY THINK STANDARDS ARE ABOUT MEASURING OUTPUT HOW WELL STUDENTS DO IN MATH HISTORY OR BIOLOGY BUT STANDARDS FOR STUDENTS ARE ANATHEMA TO THE UNIONS BECAUSE TESTS WOULD ALERT PARENTS TO THE FACT THAT CHILDREN IN SAY TOLEDO AREN'T DOING AS WELL AS THOSE IN TOPEKA OR TOKYO VOILA THE BUREAUCRATS FIGHT BACK WITH STANDARDS FOR SCHOOLS THAT IS DELIVERY STANDARDS TO MEASURE SCHOOL INPUTS THEIR GOAL IS TO BLOCK ANY STUDENT TESTING UNTIL SCHOOLS ARE EQUAL IN SUCH THINGS AS SALARIES TEACHER CREDENTIALS AS THE UNIONS DEFINE THEM FACILITIES AND THE LIKE SUCH STANDARDS ARE SAID TO BE VOLUNTARY BUT IN EFFECT THEY WOULD BE THE CAMEL'S NOSE UNDER THE TENT FOR FEDERAL INTRUSION INTO STATE AND LOCAL SCHOOL DISTRICTS AND DON'T FORGET THE TRIAL LAWYERS MR SMITH WAS RECENTLY QUOTED IN ONE EDUCATION NEWSLETTER AS SAYING WITH APPROVAL THAT ONE PURPOSE OF THE STANDARDS IS TO INVITE LAWSUITS AGAINST LOCAL SCHOOLS THAT FAIL TO MEET THEM DIANE RAVITCH AN EDUCATION OFFICIAL IN THE BUSH ADMINISTRATION CALLS THEM A LAWYER'S DREAM AND A SCHOOL BOARD'S NIGHTMARE FOR ALL OF THESE REASONS GEORGE BUSH VETOED AN EDUCATION BILL THAT CONTAINED SUCH STANDARDS IN 1992 THE NATIONAL GOVERNORS ASSOCIATION ALSO HATES THEM AS JUST ONE MORE MENACING FEDERAL MANDATE BUT MR SMITH NO FOOL HAS ALREADY HELPED TO REPACKAGE THEM FOR 1993 UNDER THE NEW NAME OPPORTUNITY TO LEARN STANDARDS THE DRAFT OF A CLINTON ADMINISTRATION BILL FLOATED TO CONGRESS LAST MONTH INCLUDED A NEW OPPORTUNITY TO LEARN COMMISSION TO DEVELOP MODEL STANDARDS THE AMAZING THING IS THAT EVEN THIS WASN'T ENOUGH FOR THE HOUSE EDUCATION AND LABOR COMMITTEE CHAIRMAN WILLIAM FORD OF MICHIGAN WANTS INPUT STANDARDS TO BE EVEN MORE CERTAIN BY CONTRACTING THEM OUT TO A SINGLE SOURCE NO DOUBT TO ONE OF THE USUAL SUSPECTS THE MEMBERS GAVE MR RILEY A ROUGH TIME IN A MEETING LAST MONTH SENDING HIM BACK TO WRITE A BILL MORE TO THEIR LIKING THE EPISODE SHOWS HOW HARD IT IS FOR EVEN A WELLINTENTIONED DEMOCRAT TO BREAK FREE OF THE CARTELS THAT CONTROL PUBLIC POLICY IN WASHINGTON WE ALMOST FEEL SORRY FOR MR RILEY 9304190139 930419 TECHNOLOGY & MEDICINE BELL COMMUNICATIONS RESEARCH BUILDS ALLMETAL COMPUTERMEMORY DEVICE BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BELL COMMUNICATIONS RESEARCH INC HAS BUILT A NEW ALLMETAL MICROELECTRONIC STORAGE DEVICE THAT IT SAID MAY SOMEDAY REPLACE THE SILICON TRANSISTORS USED IN TODAY'S COMPUTER MEMORIES CURRENT MEMORY CHIPS REQUIRE ULTRACLEAN FACTORIES TO MANUFACTURE DELICATE SILICON WAFERS ETCHED WITH MICROSCOPIC ELECTRICAL CIRCUITS BUT BELLCORE'S NEW DEVICE CALLED A BIPOLAR SPIN SWITCH REQUIRES A MUCH SIMPLER PRODUCTION PROCESS INVOLVING A SANDWICH OF COMMON METALS MOREOVER THE DEVICES HOLD INFORMATION EVEN AFTER ELECTRIC POWER IS SHUT OFF SUCH NONVOLATILE MEMORY WOULD GIVE A BIG BOOST TO COMPUTERS WHICH TODAY USE VOLATILE DEVICES REQUIRING THAT DATA HELD IN THE CHIPS BE TRANSFERRED TO A STORAGE DISK BEFORE THE COMPUTER IS SHUT OFF THE NEW DEVICE USES A SANDWICH OF TWO MAGNETIC ALLOYS AND A THIN FERROMAGNETIC FILM MADE OF GOLD WHEN AN ELECTRIC CURRENT IS APPLIED TO THE GOLD FILM THE SOCALLED SPIN OF ELECTRONS IN THE DEVICE CAN BE MANIPULATED UP OR DOWN WHEN ALL THE ELECTRONS IN THE FILM LAYER ARE POINTING IN THE SAME DIRECTION AS THE MAGNETISM IN THE THIRD LAYER THEN THE DEVICE ACTS AS A SWITCH TURNING CURRENT INTO AN INFORMATION CARRIER THE UP OR DOWN MOVEMENTS OF THE ELECTRONS CAN BE PROGRAMMED INTO THE ONES OR ZEROS OF COMPUTER CODE TO PERFORM LOGIC CALCULATIONS SAID MARK JOHNSON THE BELLCORE PHYSICIST WHO REPORTED ON HIS DEVICE IN THE LATEST ISSUE OF SCIENCE ALSO SIGNIFICANT WAS DR JOHNSON'S DISCOVERY THAT HIS DEVICES SEEM TO PERFORM BETTER THE MORE THEY ARE MINIATURIZED THIS SUGGESTS THAT THE NEW CHIPS COULD HELP SHRINK THE SIZE OF FUTURE COMPUTERS AND COMMUNICATIONS DEVICES HE SAID I HAVE MADE PROTOTYPE DEVICES AND THEY HAVE WORKED EXTREMELY WELL HE SAID IT'S ALWAYS A BIG STEP TO GO FROM THE EXPERIMENTAL LAB TO BUILDING ACTUAL DEVICES SAID GARY PRINZ A PHYSICIST AT THE NAVAL RESEARCH LABORATORY WASHINGTON DC BUT HIS FINDINGS LOOK VERY PROMISING THE DEVICES ARE MUCH SMALLER AND USE A LOT LESS POWER THAN SEMICONDUCTOR DEVICES BELLCORE HAS APPLIED FOR A PATENT FOR THE DEVICE WHICH DR JOHNSON CALLS A SPIN TRANSISTOR SINCE THE LAB IS OWNED BY THE SEVEN REGIONAL BELL COMPANIES IT IS LEGALLY RESTRAINED FROM MANUFACTURING AND SELLING PRODUCTS USING THE CHIPS BUT THE BABY BELLS HOPE TO LICENSE THE TECHNOLOGY TO OTHER MANUFACTURERS THAT BUILD SYSTEMS FOR DATA STORAGE AND COMMUNICATIONS NETWORKS HE SAID THE BELL COMPANIES WANT TO GET INTO INFORMATION SERVICES REQUIRING TREMENDOUS DATA CAPACITY INCLUDING DATABASES AND VIDEO SERVICES DR JOHNSON NOTED 9304190138 930419 MARKETING & MEDIA FCC ASKS NEWS CORP FOR MORE DATA IN SALE OF THE NEW YORK POST WASHINGTON THE FEDERAL COMMUNICATIONS COMMISSION ASKED RUPERT MURDOCH'S NEWS CORP FOR MORE INFORMATION ABOUT THE SALE OF THE NEW YORK POST AS IT CONSIDERS WAIVING AGENCY RULES THAT BAR COMMON OWNERSHIP OF A NEWSPAPER AND A TELEVISION STATION IN THE SAME MARKET FOX TELEVISION STATIONS INC A UNIT OF MR MURDOCH'S NEWS CORP OWNS WNYWTV CHANNEL 5 IN NEW YORK LATE LAST MONTH A FEDERAL BANKRUPTCY COURT JUDGE ACCEPTED A PLAN TO TRANSFER CONTROL OF THE POST TO MR MURDOCH FROM COURTDESIGNATED OWNER ABRAHAM HIRSCHFELD AT THE TIME FCC CHAIRMAN JAMES QUELLO INDICATED THE AGENCY WAS LIKELY TO APPROVE MR MURDOCH'S WAIVER REQUEST ON FRIDAY HOWEVER THE FCC ASKED FOR DETAILS OF THE EFFORTS MADE TO SELL THE POST BOTH BEFORE AND AFTER THE PAPER WAS PLACED IN BANKRUPTCY IN ADDITION THE FCC WANTS CERTIFICATION FROM A NEWSPAPER BROKER THAT THE POST'S LISTING PRICE WAS FAIR AT THE REQUEST OF TWO HISPANIC GROUPS THAT OPPOSE THE WAIVER THE AGENCY DELAYED THE DEADLINE FOR PUBLIC COMMENTS ON THE MATTER UNTIL MAY 10 COMMENTS ORIGINALLY WERE DUE NEXT MONDAY MR MURDOCH WHO OWNED THE POST FROM 1976 TO 1988 WAS FORCED BY CONGRESS TO SELL THE NEWSPAPER AFTER ACQUIRING WNYWTV IN 1986 9304190137 930419 WHO'S NEWS TRION INC TRION INC SANFORD NC STEVEN L SCHNEIDER 49 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS MAKER OF AIRQUALITY EQUIPMENT PREVIOUSLY MR SCHNEIDER WAS GROUP PRESIDENT AT TOMKINS INDUSTRIES INC A DAYTON OHIO SUBSIDIARY OF TOMKINS PLC MR SCHNEIDER SUCCEEDS SAMUEL J WORNOM III WHO HAD BEEN THE ACTING PRESIDENT AND CHIEF EXECUTIVE SINCE LAST JULY MR WORNOM WILL REMAIN A DIRECTOR 9304190136 930419 CREDIT RATINGS ALASKA AIR DEBT IS DOWNGRADED NEW YORK STANDARD & POOR'S CORP SAID IT DOWNGRADED ALASKA AIR GROUP INC'S SUBORDINATED DEBT TO SINGLEB FROM DOUBLEB MINUS REFLECTING HEAVY LOSSES ENCOUNTERED IN 1992 AND PROSPECTS FOR A SLOW RECOVERY RATINGS ON EQUIPMENT TRUST CERTIFICATES OF THE SEATTLE AIRLINE HOLDING COMPANY'S SUBSIDIARY ALASKA AIRLINES INC WERE LOWERED TO DOUBLEBPLUS FROM TRIPLEBMINUS 9304190135 930419 AMERICAN EXPRESS ASKS 55 MILLION FOR POSH PENTHOUSE BROKERS SAY PRICE COULD DETER BUYERS OF MANHATTAN CONDO USED BY EXCHIEF EXECUTIVE BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL AMERICAN EXPRESS CO HAS PUT UP FOR SALE THE MANHATTAN PENTHOUSE APARTMENT IT BOUGHT IN 1986 FOR THENCHIEF EXECUTIVE JAMES ROBINSON III BUT IT COULD TURN OUT TO BE ANOTHER WHITE ELEPHANT LIKE THE MINNEAPOLIS MANSION IT ASSUMED FROM HARVEY GOLUB ITS CURRENT CHIEF EXECUTIVE OFFICER EVEN IN MANHATTAN ONLY A HANDFUL OF RESIDENCES ARE SOLD AT THE 55 MILLION LEVEL THAT AMERICAN EXPRESS IS ASKING FOR THE 4000SQUAREFOOT CONDOMINIUM I WOULDN'T HOLD MY BREATH THERE ARE A LOT OF ALTERNATIVES SAYS CLARK HALSTEAD WHOSE FIRM CLARK HALSTEAD PROPERTY CO IS ONE OF SEVERAL BROKERS THAT CAN SHOW THE APARTMENT IT COULD BE ON THE MARKET FOR A FEW YEARS UNLESS AMERICAN EXPRESS WANTS A QUICK SALE BY DROPPING THE PRICE BELOW 4 MILLION HE ADDS MARKING DOWN MR GOLUB'S 69 MILLION 15000SQUAREFOOT HOME IN MINNEAPOLIS HASN'T HELPED SO FAR THOUGH UNDER CONSTRUCTION WHEN MR GOLUB WAS TRANSFERRED TO NEW YORK IN MID1991 IT REMAINS UNSOLD DESPITE ITS CURRENT ASKING PRICE OF 39 MILLION AMERICAN EXPRESS IS NOW PAYING CARRYING COSTS OF 130000 PER QUARTER AND WILL BEAR THE EXPECTED LOSS ON THE SALE OF THE PROPERTY AMERICAN EXPRESS PUT MR ROBINSON'S APARTMENT AND TWO OTHERS IT OWNS IN MUSEUM TOWER AT THE MUSEUM OF MODERN ART ON THE MARKET AFTER WORKING OUT A SEVERANCE DEAL WITH MR ROBINSON LAST MONTH IT ALLOWED HIM OCCUPANCY FOR 60 DAYS BASED ON THE 156787 ANNUAL RATE THAT HE HAD BEEN PAYING AMERICAN EXPRESS FOR THE APARTMENT THEREAFTER HE HAS TO PAY THE GOING MARKET RENTAL RATE UNTIL THE APARTMENT IS SOLD BUILDING COMMON CHARGES AND REAL ESTATE TAXES FOR THE PENTHOUSE RUN ABOUT 9000 A MONTH AMERICAN EXPRESS PAID ABOUT 4 MILLION IN APRIL 1986 FOR THE 51ST AND 52ND FLOOR DUPLEX WITH TERRACED VIEWS OF MANHATTAN IT CAME WITH WOODBURNING FIREPLACES IN THE LIVING ROOM AND TWO OF THE THREE BEDROOMS HERRINGBONE TEAKWOOD FLOORS TRAVERTINE MARBLE IN THE FOUR BATHROOMS AND A DUMBWAITER BETWEEN THE KITCHEN AND UPPER LEVEL BUT AS IS TYPICAL EVEN WITH NEW APARTMENTS AMERICAN EXPRESS BROUGHT IN A CONTRACTOR AND INTERIOR DECORATOR TO MODIFY THE APARTMENT TO THE TASTES OF MR ROBINSON AND HIS WIFE LINDA THE IMPROVEMENTS WHICH COST MORE THAN 1 MILLION ARE INCLUDED IN THE SALES PRICE ACCORDING TO PEOPLE FAMILIAR WITH THE RENOVATIONS USUALLY THE ORIGINAL OWNER DOESN'T GET BACK WHAT WAS PUT INTO A HIGHPRICED APARTMENT SAYS MR HALSTEAD THE NEXT RICH PERSON WILL WANT THEIR OWN EGO TRIP THEY'LL CALL IN A DECORATOR AND START WITH A BULLDOZER IN ANY EVENT AMERICAN EXPRESS EXPECTS THE PRICE IT RECEIVES FOR THE APARTMENT TO COVER OR EXCEED ITS COST PLUS IMPROVEMENTS A SPOKESMAN SAID AMERICAN EXPRESS IS ASKING 29 MILLION AND 685000 RESPECTIVELY FOR THE TWO OTHER APARTMENTS IT OWNS IN THE BUILDING AND WHILE THEY MAY NOT BE BE IN THE SAME PRICE LEAGUE AS THE ROBINSON PENTHOUSE APARTMENT ONE OF THE TOWER'S OTHER PENTHOUSES IS IT'S ON THE MARKET FOR 59 MILLION DOWN FROM 69 MILLION WHEN IT WAS FIRST LISTED IN THE FALL OF 1991 SAY BROKERS AS FOR MR ROBINSON HE STILL HAS THE KEYS TO HIS PENTHOUSE WHICH WILL BE UNFURNISHED WHEN TAKEN OVER BY ITS NEW OWNER BUT HE HAS BEEN STAYING MOSTLY AT HIS FLORIDA AND CONNECTICUT HOMES SINCE HE LEFT THE COMPANY A SPOKESMAN SAID IF HE DOES PLAN TO KEEP A RESIDENCE IN MANHATTAN HIS RECENT SALE OF A BLOCK OF AMERICAN EXPRESS STOCK FOR 29 MILLION WILL GIVE HIM SOME SHOPPING MONEY 9304190134 930419 LEISURE & ARTS TELEVISION STOP THE PRESS BEFORE IT KILLS AGAIN BY DOROTHY RABINOWITZ THE THEME OF THE NEW THREEPART MASTERPIECE THEATRE PRODUCTION AND ITS ACCOMPANYING SMALL LECTURE COULD HARDLY BE MORE TIMELY AS VIEWERS WHO TUNED INTO PART ONE LAST NIGHT SAW AND THOSE WHO DIDN'T WILL FIND THIS A STORY EASY TO PICK UP IN MIDSTREAM CALLING THE SHOTS IS A VERY CONTEMPORARY WORK WRITTEN FOR TELEVISION PARTS TWO AND THREE AIR THE FOLLOWING SUNDAYS 910 PM EDT ON PBS ONE OF THE SEVERAL PRODUCTIONS IN RECENT YEARS NOT DRAWN FROM MASTERPIECE THEATRE'S APPARENTLY BOTTOMLESS SUPPLY OF OBSCURE 19THCENTURY NOVELS THIS WORK IS NONETHELESS A MORALITY TALE BRIMFUL OF THE KIND OF IRONY AND JUST DESSERTS THE VICTORIANS WOULD HAVE LOVED THE SERIES BY LAURA LAMSON CONCERNS A TV JOURNALIST TERRORIZED BY AN UNKNOWN PURSUER WHO HAUNTS HER WITH TELEPHONE CALLS AND KNOWS HER EVERY MOVE IT IS ALSO A TALE ABOUT MEDIA VALUES AND IF ONE MAY USE SUCH A WORD ETHICS TO SAY THIS OF COURSE IS TO RUN A CERTAIN RISK NETWORK MEDITATIONS ON MEDIA ETHICS AND RESPONSIBILITY AND ALL THOSE THOUGHTFUL ROUNDTABLE MASS DISCUSSIONS OF THE SUBJECT ON PBS HAVE AFTER ALL A WELLKNOWN CAPACITY TO PROPEL AUDIENCES FROM THEIR CHAIRS AND OUT TO THE REFRIGERATOR FOR A SNACK IT ISN'T BOREDOM ALONE THAT PRODUCES THIS INSTINCT TO FLEE THERE IS SOMETHING DOWNRIGHT INSUFFERABLE ABOUT THE PROSPECT OF LISTENING TO EARNEST REFLECTIONS ON RESPONSIBILITY BY REPRESENTATIVES OF NEWS ORGANIZATIONS THAT HAVE TWO HOURS BEFORE COMMITTED THE VERY EXCESSES BEING LAMENTED IN THESE BREASTBEATING SEMINARS AS THEY WILL DO AGAIN TWO HOURS LATER THE GOOD NEWS IS THAT IN THIS PRODUCTION THESE MEDITATIONS COME IN THE FORM OF GRIPPING DRAMA THE SHOW'S HEROINE MAGGIE DONNELLY IS A GRIMLY DEDICATED CRUSADER WHOSE TELEVISED REPORT ON A BATTERER AND RAPIST BRINGS TWO POLICEMEN TO HER HOUSE THEY BRING NEWS THAT FOLLOWING THE BROADCAST THE SUBJECT OF HER REPORT HANGED HIMSELF AT THE END OF THE THIRD AND FINAL PART OF THIS PRODUCTION HOST LINDA ELLERBEE DELIVERS A SMALL COMMENTARY ON THE THEME OF JOURNALISTIC ARROGANCE AND NEAR NEWS NEAR NEWS IS A CIVILIZED TERM FOR WHAT MS ELLERBEE GOES ON TO DESCRIBE AS NEWS PROGRAMS GIVEN TO REENACTMENTS OR ADDING A LITTLE SOMETHING TO THE EXPLOSION TO MAKE IT BIGGER OR BRIGHTER OR BLOW UP WHEN YOU WANT IT TO THE PRODUCERS OF DATELINE NBC WHO RIGGED THE EXPLOSION OF THE GM PICKUP WILL RECOGNIZE THE REFERENCE ALONG WITH EVERYONE ELSE THE SUBJECT OF JOURNALISTS' RESPONSIBILITIES OR LACK THEREOF COULD TO REPEAT NOT BE MORE TIMELY IT IS INDEED ALWAYS TIMELY SINCE HARDLY A WEEK PASSES WITHOUT SOME PIECE OF JOURNALISTIC BEHAVIOR MAKING IT RELEVANT AS THIS WAS BEING WRITTEN ON FRIDAY THE SHOCK TROOPS OF EVERY NEWS ORGANIZATION IN THE NATION WERE AWAITING THE VERDICT IN THE LOS ANGELES POLICE TRIAL THEY HAD COME FROM ALL OVER TO DELIVER MINUTEBYMINUTE UPDATES ABOUT WHAT COULD HAPPEN WHAT SOME PEOPLE SAID WOULD OR WOULDN'T HAPPEN AND TO GATHER FOOTAGE OF LONG LINES OF CITIZENS WAITING TO GET INTO STORES TO BUY GUNS AND AMMUNITION ONE OBSERVATION BY MS ELLERBEE AT THE END OF THIS PRODUCTION ABOUT SELFRESTRAINT AND RESPONSIBILITY IS PARTICULARLY RELEVANT TO THIS SORT OF COVERAGE THE JOURNALISTHEROINE OF THIS SERIES SEEMS TO THINK THE HOST NOTES THAT AS LONG AS SHE TELLS THE TRUTH SHE ISN'T RESPONSIBLE FOR WHAT HAPPENS IN THE CASE OF LOS ANGELES WHAT WAS HAPPENING WAS OF COURSE A MOUNTING ANGER AND HYSTERIA LIKE THAT PRODUCED LAST SUMMER WHEN NEW YORK CITY'S WASHINGTON HEIGHTS NEIGHBORHOOD ERUPTED AFTER A POLICE OFFICER KILLED A CONVICTED DRUG DEALER WHILE THE OFFICER STRUGGLED TO ARREST HIM ALL THAT FOURTH OF JULY WEEKEND THE LOCAL TELEPROMPTER READERS DELIVERED BREATHLESS SOUNDINGS ON THE COMMUNITY'S MOOD GATHERED BY HERDS OF REPORTERS WHO HAD FLOCKED TO THE AREA AND PLEDGES TO KEEP US ABREAST OF DEVELOPMENTS AND THE GROWING TENSIONS GROWING HOW AND NURTURED BY WHOM THE ANSWER WAS EVIDENT TO ANY SANE PERSON WATCHING THOSE NEWS CREWS AT WORK BY MONDAY WASHINGTON HEIGHTS HAD A FULLSCALE RIOT WITH LOOTING SUPPOSEDLY AS AN EXPRESSION OF GRIEF OVER THE DEAD MAN NOT FOR NOTHING DID A SPOKESWOMAN FOR THE DRUG DEALER'S FAMILY OFFER PROFUSE THANKS FOR THE TELEVISION AND THE NEWSPAPERS SO FAR THERE HAS BEEN NO RIOTING IN LOS ANGELES AND IT DOESN'T LOOK AS IF THERE WILL BE ANY SO ALL THE GEARING UP FOR ONE BY THE MEDIA THAT IS APPEARS TO HAVE BEEN IN VAIN ONE NICE THING ABOUT THIS PRODUCTION AMONG MANY IS THAT IT IS SET FAR FROM THESE SHORES IN LONDON IT'S A COMFORT OF SORTS THAT IS TO SEE THE UNIVERSAL ASPECT OF THE WITLESSNESS THAT DRIVES TELEVISION NEWS LYNN REDGRAVE'S MAGGIE AN ENRAGED HULK OF A CRUSADER CONFRONTS A NEW NETWORK CHIEF DETERMINED TO PRODUCE PROGRAMMING FOR THE FAMOUS LOWEST COMMON DENOMINATOR WE CAN BE GRATEFUL TO PRODUCER DAVID SNODIN ET AL FOR PUTTING A BLACK ACTOR IN THE ROLE OF A NUMBERSCRUNCHING TYRANT AND BUREAUCRATIC HYPOCRITE INSTEAD OF IN THE STANDARD SAINTEDVICTIM ROLE THIS NOW IS EMANCIPATION ESPECIALLY FOR CYRIL NRI WHO PLAYS THE NETWORK CHIEF WITH WICKED BRILLIANCE WHILE MAGGIE WANTS TO DO HIGHMINDED CONSCIOUSNESSRAISING ABOUT RAPE HER NEW BOSS WANTS HER TO GO TO A HEALTH CLUB AND REPORT ON THE FITNESS CRAZE AND IT IS THERE THAT THIS ENTIRELY SUSPENSEFUL AND ONALLCOUNTS WONDERFUL THRILLER BEGINS A VERY DIFFERENT SORT OF GRIPPING PBS PROGRAM AIRS WEDNESDAY 91130 PM EDT ON ANTISEMITISM THROUGH THE AGES TITLED THE LONGEST HATRED IT OFFERS THE MOST EXTRAORDINARY RANGE OF PICTURES AND COMMENTATORS EVER MARSHALED FOR A TV DOCUMENTARY ON THIS SUBJECT 9304190133 930419 KUWAITI CONCERN FILES LAWSUIT IN LONDON OVER ALLEGED FRAUD LONDON AP KUWAIT'S OVERSEAS INVESTMENT OFFICE HAS GONE TO COURT IN BRITAIN TO RECOVER MORE THAN 500 MILLION FROM ALLEGED FRAUDS IT SAID COST THE OILRICH EMIRATE BILLIONS OF DOLLARS THE KUWAIT INVESTMENT OFFICE ON FRIDAY ISSUED A SKETCHY TWOPAGE STATEMENT IN LONDON BUT DECLINED TO ELABORATE ON THE CASE A CIVIL SUIT FILED LATE THURSDAY IN THE HIGH COURT A TRIAL MIGHT SHED LIGHT ON THE PREVIOUSLY SECRETIVE MANAGEMENT OF KUWAIT'S VAST NONOIL INVESTMENTS THE KIO CONTENDS THAT AS MUCH AS 5 BILLION WAS MISAPPROPRIATED OR MISMANAGED BY EXECUTIVES AND OTHER PERSONNEL AT THE KIOOWNED GRUPO TORRAS IN SPAIN THE CASE IN LONDON INVOLVES ONLY PART OF THE MISSING MONEY GRUPO TORRAS IS NOW IN RECEIVERSHIP GRUPO TORRAS AND A SUBSIDIARY TORRAS HOSTENCH LONDON FILED THE SUIT WHICH CENTERS ON FOUR ALLEGEDLY FRAUDULENT TRANSACTIONS BETWEEN MAY 1988 AND MAY 1992 THREE OF THEM INVOLVE WHAT THE KIO CALLS COMPLICATED LOAN AGREEMENTS AND CLAIMS OF FICTITIOUS REPAYMENTS ONE OF THE 22 DEFENDANTS IS SHEIK FAHAD ALSABAH A COUSIN OF KUWAIT'S EMIR SHEIK JABER ALAHMED ALSABAH FAHAD ALSABAH FORMERLY CHAIRMAN OF THE KIO IS SAID IN COURT PAPERS TO HAVE MOVED TO THE BAHAMAS SEVEN OF THE DEFENDANTS INCLUDING FAHAD ALSABAH HAD BEEN CHARGED IN A CRIMINAL LAWSUIT BROUGHT BY THE KIO IN SPAIN THAT CASE WAS THROWN OUT BY A SPANISH JUDGE WHO CITED A LACK OF EVIDENCE THE KUWAITIS HAVE FILED AN APPEAL SEEKING TO REINSTATE THE CRIMINAL CASE AND A CIVIL CASE IN SPAIN IS PENDING THE KIO ESTIMATED THE LONDON SUIT WILL TAKE UP TO TWO YEARS TO RESOLVE 9304190132 930419 WHO'S NEWS MATRIX SERVICE CO MATRIX SERVICE CO TULSA OKLA HUGH BRADLEY AND JACK ZINK WERE NAMED TO THE BOARD OF THIS PETROLEUM SERVICES CONCERN FILLING TWO VACANCIES MR BRADLEY IS DIVISION MANAGER FOR TEXACO TRADING & TRANSPORTATION INC MIDCONTINENT REGION MR ZINK IS PRESIDENT OF ZEECO INC A PLASTICS AND PETROLEUM EQUIPMENT MANUFACTURING COMPANY IN TULSA 9304190131 930419 INSTORE DELAYS FILING ANNUAL REPORT CAPPS QUITS FINANCE POST GREENWICH CONN INSTORE ADVERTISING INC SAID IT DELAYED THE FILING OF ITS ANNUAL REPORT DUE MARCH 31 AND ALSO SAID ITS CHIEF FINANCIAL OFFICER JOHN E CAPPS RESIGNED MR CAPPS 44 YEARS OLD DECLINED TO COMMENT ON HIS RESIGNATION AS DID THE COMPANY HIS POSITION WILL REMAIN TEMPORARILY VACANT IN A RELATED MOVE INSTORE NAMED ITS CONTROLLER GARY M STEINBECK 34 TO THE ADDITIONAL POSITION OF PRINCIPAL ACCOUNTING OFFICER INSTORE A PROVIDER OF ELECTRONIC ADVERTISING FOR SUPERMARKETS SAID IT FAILED TO FILE ITS ANNUAL REPORT BECAUSE IT WANTED TO RESOLVE CERTAIN QUESTIONS RELATED TO FINANCIAL DOCUMENTS FOR ITS 1990 FISCAL YEAR LAST MAY THE COMPANY SUSPENDED NEGOTIATIONS TO SETTLE A CLASSACTION LAWSUIT ARISING FROM ITS 1990 PUBLIC OFFERING UNDER TERMS OF THE PROPOSED SETTLEMENT INSTORE AND OTHER DEFENDANTS AGREED TO PAY 71 MILLION TO SHAREHOLDERS AND THEIR LAWYERS WHO CHARGED THAT THE COMPANY INFLATED THE MARKET PRICE OF ITS STOCK BEFORE THE OFFERING ACCORDING TO STEVE KAHLER PRESIDENT THE PROPOSED SETTLEMENT FELL THROUGH BECAUSE INSTORE COULDN'T RAISE MONEY TO SETTLE THE CHARGES INSTORE HAD SAID IT RESERVED ABOUT 55 MILLION AGAINST EARNINGS IN THE 1991 FOURTH QUARTER IN ANTICIPATION OF THE SETTLEMENT AND THE AMOUNT WOULD BE SUFFICIENT TO COVER ITS SHARE OF THE SETTLEMENT NEGOTIATIONS CONTINUE TO BE STALEMATED MR KAHLER SAID BECAUSE THE SHAREHOLDERS WHO BROUGHT THE LAWSUIT REFUSE TO BUDGE ON THE SETTLEMENT AMOUNT THE COMPANY SAYS IT NOW EXPECTS TO FILE THE ANNUAL REPORT ON FORM 10K WITH THE SECURITIES AND EXCHANGE COMMISSION WITHIN 60 DAYS THE OVERTHECOUNTER EXCHANGE ON WHICH THE COMPANY'S STOCK TRADES HAD INFORMED INSTORE THAT A FAILURE TO FILE THE REPORT ON TIME COULD RESULT IN THE DELISTING OF THE COMPANY'S SECURITIES THE COMPANY SAID 9304190130 930419 LARGE INVESTORS IN JAPAN CAN BUY ASSETBACKED ISSUES BY ABBY SCHULTZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE SECURITIES LAW OF JAPAN QUIETLY HAS BEEN AMENDED TO ALLOW JAPANESE INSTITUTIONAL INVESTORS TO BUY FOREIGN ASSETBACKED SECURITIES FOR THE FIRST TIME THE CHANGE COULD BE A MULTIBILLIONDOLLAR BOON TO US ASSETBACKED ISSUERS PARTICULARLY LARGE VOLUME ISSUERS SUCH AS CITICORP AND GENERAL MOTORS CORP QUALIFIED BUYERS INCLUDE SECURITIES COMPANIES TRUST COMPANIES AND BANKS ALSO INCLUDED ARE INVESTMENT TRUST COMPANIES THE LARGE MUTUAL FUND INDUSTRY OF JAPAN THE AMENDING OF JAPAN'S SECURITIES AND EXCHANGE LAW EFFECTIVE APRIL 1 PUTS FOREIGNISSUED ASSETBACKED INSTRUMENTS ON THE LIST OF ELIGIBLE INVESTMENTS AT THE URGING OF A CITICORP UNIT THE MINISTRY OF FINANCE TWO YEARS AGO AGREED TO ALLOW JAPANESE SECURITIES FIRMS TO SELL SECURITIES BACKED BY CREDIT CARDS AS A SIDE BUSINESS BUT BECAUSE CREDITCARD LOANS STILL WEREN'T DESIGNATED AS SECURITIES THEY REMAINED OFF LIMITS TO MAJOR INSTITUTIONAL BUYERS THEY WERE CONTROLLED SUBSTANCES' SAYS BRUCE BANTZ VICE PRESIDENT IN CITIBANK'S CREDITCARD BUSINESS LIKE A DOCTOR HAS THE RIGHT TO ADMINISTER A NARCOTIC BUT YOU DON'T HAVE THE RIGHT TO BUY IT ON THE STREET BANKS COULD BUY CREDITCARD SECURITIES BUT THERE COULD BE NO LIQUID SECONDARY MARKET DESPITE THE CHANGE EARLY THIS MONTH THE FULL IMPLICATIONS OF THE LAW ARE LARGELY UNCLEAR AND SUBJECT TO INTERPRETATION BY JAPANESE AND US BANKS AND ISSUERS ONE QUESTION CONCERNS REGULATORY DISCLOSURE ONEROUS DISCLOSURE REQUIREMENTS SUCH AS REQUIRING US ISSUERS TO FILE STATEMENTS IN JAPANESE COULD MEAN ASSETBACKED SECURITIES WILL REMAIN CONTROLLED SUBSTANCES BUT SOME AUTHORITIES IN THE SECURITIES INDUSTRY BELIEVE THE LAW WILL ALLOW US ISSUERS TO SELL DOLLARDENOMINATED SECURITIES TO QUALIFIED INSTITUTIONAL INVESTORS WITH LITTLE TO NO REGULATORY DISCLOSURE IF TRUE ISSUERS SUCH AS CITICORP AND MBNA CORP THE COMPANIES MOST VISIBLE IN PUSHING FOR CHANGE WILL HAVE A HUGE NEW INVESTOR BASE TO TAP IT'S ONLY POSITIVE FOR ASSETBACKEDS SAYS TRACY HUDSON ANALYST AT FIRST BOSTON CORP NOTING THERE'S ALREADY BEEN AN INTERNATIONAL TREND IN PURCHASING ASSETBACKEDS ONE COMPLICATION IS THAT THE NEW LAW STILL IS EVOLVING A CATCH ALL PROVISION IN THE AMENDMENT ALLOWS THE JAPANESE CABINET TO ADD SECURITIES TO THE ELIGIBLE LIST THIS EVENTUALLY COULD MEAN JAPANESE INSTITUTIONS SELL THEIR OWN ASSETBACKED SECURITIES PROVIDING A WAY FOR BELEAGUERED JAPANESE COMPANIES TO BOOST THEIR BALANCE SHEETS AN OFFICIAL WITH THE JAPANESE SUBSIDIARY OF A US BANK SAYS THE ISSUE OF JAPANESE SECURITIZATION IS GAINING ATTENTION BUT THAT NO JAPANESE COMPANIES HAVE STEPPED FORWARD THAT'S PARTLY BECAUSE LEGAL AND TAX HURDLES IN JAPAN COULD THROW UP ROADBLOCKS FOR MANY YEARS SAYS TOSHIYUKI SHOJI A BANKER WITH NOMURA SECURITIES INTERNATIONAL INC THE US UNIT OF NOMURA SECURITIES CO OF TOKYO ALSO THE PROCESS OF RATING STRUCTURED TRANSACTIONS IS ENTIRELY NEW FOR JAPANESE AGENCIES MR SHOJI NOTES THE JAPANESE RATING AGENCIES ARE LACKING DATA ON LOAN DELIQUENCIES AND DEFAULTS AND THE SOPHISTICATION TO RATE THOSE STRUCTURED DEALS HE SAYS 9304190129 930419 EARMARKING TAXES ANYONE LISTENING BY JOHN MAXWELL HAMILTON THOSE FEDERAL INCOME TAX FORMS YOU JUST MAILED OFF WILL SOON BE IN THE CLUTCHES OF FEDERAL BUREAUCRATS SINCE YOUR PART IS DONE YOU MAY BE HEAVING A SIGH OF RELIEF GO AHEAD BUT DON'T FORGET THE AGONY YOU FELT NOT LONG AGO AS THE TAX DEADLINE APPROACHED AND YOU WERE FILLED WITH THOSE FAMILIAR MIDAPRIL FEELINGS OF DREAD AND RAGE PERHAPS YOU DON'T REALLY MIND HAVING TO PAY ALL THOSE TAXES AFTER ALL SOME REDBLOODED AMERICANS LIKE TO EMPTY THEIR VEINS THE PROBLEM IS THAT YOU DON'T HAVE A SAY IN HOW YOUR TAX DOLLAR IS SPENT IT'S NOT UNLIKE THE GOVERNMENT GOING TO THE SHOE STORE WITH YOU TO MAKE YOU BUY BROWN LOAFERS WHEN YOU REALLY WANT BLACK WINGTIPS THAT'S WHY YOU'RE MAD AT TAX TIME AND THAT'S WHY YOU'LL LIKE THE IDEA OF MY FRIEND AND ACCOUNTANT CHARLIE BALLOU CHARLIE IGNORES THE NUANCELADEN SIDE ISSUES THAT TYPICALLY BOG DOWN TAX REFORM NOTHING ABOUT CHANGING RULES ON IRAS OR STREAMLINING FORMS OR SENDING INTERNAL REVENUE SERVICE AUDITORS TO SENSITIVITY TRAINING NO TIME IS WASTED DEBATING HOW TO REDUCE THE MIDDLECLASS TAX BURDEN CHARLIE'S IDEA IS SIMPLE SOMEWHERE BELOW LINE 53 ON YOUR TAX FORM THE LINE THAT TALLIES YOUR TOTAL TAX LIABILITY YOU TELL THE GOVERNMENT HOW TO SPEND YOUR MONEY EXAMPLE YOU MIGHT NOT BE HAPPY THAT THE GOVERNMENT SPENDS ABOUT 20 CENTS OUT OF EVERY TAX DOLLAR ON DEFENSE YOU WOULD HAVE PREFERRED A NICKEL SINCE A POTHOLE NEARLY SWALLOWED YOUR CAR THE OTHER DAY YOU WANT UNCLE SAM TO SPEND 20 CENTS ON FEDERAL AID TO HIGHWAYS INSTEAD OF THE PENNY OR SO IT REALLY SPENT OR YOU MIGHT THINK TWO CENTS FOR EDUCATION ABOUT THE SAME SUM NASA GETS FOR TRYING TO SEND PEOPLE INTO ORBIT IS A BIT LOW ONCE YOU'RE CONTROLLING THE BUDGET YOUR SPENDING DECISIONS WILL SURPRISE YOU IF YOU ARE LIKE MOST AMERICANS YOU DON'T LIKE FOREIGN AID VERY MUCH BUT YOU MIGHT BE WILLING TO SHELL OUT TWO OR THREE CENTS FOR IT WHICH IS CONSIDERABLY MORE THAN THE FRACTION OF A CENT CURRENTLY SPENT IN A TYPICAL YEAR CHARLIE'S APPROACH IS GROUNDED IN MORE THAN FANTASY AND IS NO LESS COHERENT THAN THE CURRENT ONE WITH 535 LEGISLATORS FIGHTING OVER PIECES OF THE BUDGET STILL SOME PEOPLE WILL SAY THAT CHARLIE'S IDEA ISN'T PRACTICAL THEY WILL RAISE ALL SORTS OF TECHNICAL DIFFICULTIES AND CARP ABOUT BUDGET PREFERENCES NOT ADDING UP TO A RATIONAL NATIONALSPENDING STRATEGY CHARLIE IS NOT THE ONLY PERSON TO COME UP WITH THIS IDEA SINCE HE MENTIONED IT TO ME I'VE COME ACROSS THE CENTER FOR ENERGY RESEARCH IN SALEM ORE IT IS ON A CRUSADE FOR A SELFDIRECTED INCOME TAX AND IS LOOKING FOR FOLLOWERS WHEREVER IT CAN FIND THEM ALL DONATIONS ARE FEDERALLY TAXDEDUCTIBLE TO THE FULL EXTENT OF THE LAW SAYS ITS NEWSLETTER THERE ARE PLENTY OF PRECEDENTS FOR EARMARKING YOUR TAXES RIGHT NOW YOU CAN CHECK A BOX ON YOUR FORM 1040 IF YOU WANT ONE TAX DOLLAR TO GO INTO A PRESIDENTIAL CAMPAIGN FUND WHAT'S MORE LOTS OF PRESIDENTS HAVE LIKED CHARLIE'S IDEA THEY WANT THE LINEITEM VETO WHICH LETS THEM NULLIFY INDIVIDUAL CONGRESSIONAL BUDGET DECISIONS CHARLIE'S IDEA IS BETTER OF COURSE BECAUSE IT TAKES BOTH CONGRESS AND THE PRESIDENT OUT OF THE PICTURE LATE IN HIS PRESIDENCY PRESIDENT BUSH RECOGNIZED THE VALUE OF THIS IN HIS HOUSTON SPEECH HE ENDORSED A PROPOSAL THAT WOULD LET TAXPAYERS CHECK A BOX ON THEIR TAX RETURNS SO THAT UP TO 10 OF THEIR PAYMENTS CAN GO FOR ONE PURPOSE ALONE TO REDUCE THE NATIONAL DEBT THE PROPOSAL DIDN'T WIN HIM REELECTION BUT IT DID ATTRACT SOME NOTICE INCLUDING ON THIS PAGE THE GENERAL IDEA IS IN ANY CASE RIGHT GIVE A LITTLE MORE POWER TO THE TAXPAYER THINK HOW RESPONSIVE GOVERNMENT WILL BECOME WHEN YOU CONTROL THE BUDGET EACH DEPARTMENT WILL HAVE TO MAKE ITS CASE DIRECTLY TO YOU NOT TO THE LEGISLATORS WHO HAVE A 5050 CHANCE OF BALANCING THEIR OWN CHECKBOOKS WHAT A SENSE OF POWER YOU'LL EXPERIENCE WHEN A FOURSTAR GENERAL KNOCKS AT YOUR DOOR AND ASKS YOU TO BUY HIM A NEW MISSILE OR SUB AND JUST THINK HOW SATISFYING IT WILL FEEL TO NOTE AT THE BOTTOM OF YOUR FORM THAT YOU DON'T WANT ONE CENT OF YOUR TAXES FUNDING THE OPERATIONS OF THE IRS MR HAMILTON DIRECTOR OF THE MANSHIP SCHOOL OF MASS COMMUNICATION AT LOUISIANA STATE UNIVERSITY IS A COMMENTATOR ON MARKETPLACE AMERICAN PUBLIC RADIO 9304190128 930419 CAMBODIAN BREWERY GAINS A FOOTHOLD AMID RUBBLE OF WAR AND COMMUNISM BY RAPHAEL PURA STAFF REPORTER OF THE WALL STREET JOURNAL SIHANOUKVILLE CAMBODIA JOUNCING OVER THE DARKENED HILLS OF THIS SMALL PORT CITY IN HIS LAND CRUISER PWEE KONG TECK EXHORTS HIS SLIGHTLY TIPSY PASSENGERS MEMBERS OF THE SMALL TEAM OF MALAYSIANS THAT RUNS CAMBODIA'S ONLY BREWERY WE MUST KILL TIGER HE DECREES MR PWEE IS ALLUDING TO THE SINGAPOREMADE BEER THAT IS THE MAIN RIVAL TO CAMBREW PTE LTD'S SIXMONTHOLD ANGKOR BRAND WE HAVE TO CONVINCE OUR CUSTOMERS THAT WE'RE HERE TO STAY MR PWEE'S MARTIAL SPIRIT IS APT HE IS ON THE FRONT LINE OF WHAT COULD BE ASIA'S MOST CHALLENGING BUSINESS ENVIRONMENT THE ENERGETIC 54YEAROLD SINGAPOREAN MANAGES CAMBREW'S NEWLY REHABILITATED BREWERY A BOLD CAPITALIST EXPERIMENT IN A WARRAVAGED COUNTRY WHERE THE MAIN POLITICAL PLAYERS ARE EXCOMMUNISTS RADICAL MARXISTS AND NEOROYALISTS CAMBREW'S STORY ILLUSTRATES THE OBSTACLES TO DOING BUSINESS IN CAMBODIA WHERE THE THREAT OF POLITICAL INSTABILITY IS MATCHED BY A SHATTERED INFRASTRUCTURE AN ADMINISTRATION STRAPPED FOR CASH AND A CONSUMER MARKET IN WHICH TRIPLEDIGIT INFLATION IS RAGING AND THE AVERAGE PER CAPITA ANNUAL INCOME IS 220 A YEAR BUT THE COMPANY'S EXPERIENCE ALSO PROVIDES STOUTHEARTED INVESTORS A GLIMPSE OF CAMBODIA'S POTENTIAL BY MIXING BOLD RISKTAKING WITH PATIENCE AND INNOVATIVE SELFRELIANCE CAMBREW HAS REVIVED A DERELICT INDUSTRIAL PLANT AND PUT A CAMBODIANMADE PRODUCT ON THE NATIONAL MARKET CAMBREW HAS SEVERAL FACTORS WORKING IN ITS FAVOR FOR ONE THING IT HAS MADE A SUBSTANTIAL FINANCIAL COMMITMENT BY CAMBODIAN STANDARDS SHAREHOLDERS DECLINE TO DIVULGE THEIR TOTAL INVESTMENT TO DATE BUT IT PROBABLY EXCEEDS 10 MILLION DEPENDING ON WHO IS DOING THE GUESSING MALAYSIANOWNED CAMBREW MIGHT BE THE LARGEST FOREIGN INVESTMENT IN THE COUNTRY WITH ABOUT 500 EMPLOYEES IT'S THE LARGEST PRIVATESECTOR EMPLOYER AND IT'S CERTAINLY ONE OF THE FEW CAMBODIABASED BUSINESSES THAT MAKES ANYTHING TO SELL TO CAMBODIANS THE FEW OTHER MANUFACTURING VENTURES IN CAMBODIA MAINLY GARMENT MAKERS AND TIMBER PROCESSORS AIM AT MARKETS ABROAD MOST FOREIGN INVESTMENT IN CAMBODIA TODAY INVOLVES SHORTTERM OR SERVICEORIENTED BUSINESSES CATERING TO THE COUNTRY'S TINY ELITE CLASS AND TO THE 20000STRONG UNITED NATIONS CONTINGENT TEMPORARILY ON HAND TO ENFORCE A 1991 PEACE ACCORD CAMBREW MIGHT ALSO BE BENEFITTING FROM THE POLITICAL GOODWILL THAT COMES WITH BEING ONE OF THE FIRST FOREIGN COMPANIES BACK IN EARLY 1991 TO INVEST IN CAMBODIA WE CAME IN AS THE LARGEST INVESTOR WHEN NOBODY ELSE WANTED TO SAYS VIJAYAN KUTTAN CAMBREW'S PHNOM PENHBASED CHIEF OPERATING OFFICER HE IS OPTIMISTIC THAT THE COMPANY WILL BE ABLE TO WORK WITH WHATEVER GOVERNMENT EMERGES FROM THE UNSPONSORED ELECTIONS SET FOR MAY 2327 CAMBREW GOT ITS START IN 1990 WHEN TWO INVESTORS IN AN AUSTRALIAN BREWERY JOHN HARPER AND STANLEY NG BEGAN LOOKING TO BREAK INTO THE ASIAN MARKET IN 1991 THE TWO SENT A TEAM TO CAMBODIA ON A RECONNAISSANCE MISSION ON RUMORS OF AN ABANDONED BREWERY THE TIMING WAS PROPITIOUS PREMIER HUN SEN'S ONCECOMMUNIST REGIME WAS ATTEMPTING TO OPEN CAMBODIA'S ECONOMY UNDERMINED WHEN THE SOVIET UNION'S COLLAPSE ENDED THE FLOW OF AID THAT KEPT THE COUNTRY AFLOAT THROUGH THE 1980S THE INVESTORS EVENTUALLY WON A 20YEAR FIXEDTERM LEASE FROM THE GOVERNMENT FOR THE BREWERY IN MAY 1991 CAMBREW MOVED IN THEN THE REAL HEADACHES BEGAN THE PLANT HAD BEEN DORMANT FOR MORE THAN 20 YEARS ABSOLUTELY NOTHING WORKED OTHER THAN THE MACHINE SHOP WHICH WAS BEING USED TO REPAIR TIMBER LORRIES RECALLS MR KUTTAN FURTHERMORE ALL THE FACILITY'S PLANS BLUEPRINTS AND INSTRUCTION MANUALS HAD BEEN REMOVED IN THE MID1970S BY ADVISERS FROM CHINA'S TSINGTAO BREWERY WHICH HAD BEEN INVITED BY THE THENRULING KHMER ROUGE TO CONSIDER OPERATING THE PLANT CAMBREW MANAGERS PAINSTAKINGLY STUDIED THE BREWERY LAYOUT MAKING DRAWINGS AND RUNNING DYE THROUGH THE DRAINS TO SEE WHERE THEY LED FOLLOWING A TRAIL THAT STARTED WITH THE MANUFACTURERS' NAMEPLATES ON THE MACHINERY CAMBREW EVENTUALLY LOCATED THE BREWERY'S ORIGINAL FRENCH CONTRACTOR AND THUS BLUEPRINTS WE HAD TO PAY A FORTUNE SAYS MR KUTTAN MEANWHILE CAMBREW MANAGERS WERE LEARNING TO COPE WITH CAMBODIA'S DILAPIDATED INFRASTRUCTURE AND LACK OF SUPPLIERS NO REGULAR SHIPPING SERVICE TO SIHANOUKVILLE EXISTED AT THE TIME FOR EXAMPLE FORCING CAMBREW TO FLY IN 300 KILOGRAMS OF SPECIALTY TOOLS IT NEEDED TO BEGIN REPAIRS COMMUNICATION LIKEWISE WAS A NIGHTMARE TO COPE WITH THE LACK OF A PHONE SYSTEM AND WITH THE FACT THAT THE ROAD TO PHNOM PENH IS FREQUENTED BY BANDITS CAMBREW INSTALLED A 45000 SATELLITE COMMUNICATION SYSTEM AND A VHF RADIO HOOKUP TO KEEP THE BREWERY IN TOUCH WITH THE OUTSIDE WORLD DESPITE SUCH INNOVATIONS THINGS LOOKED GRIM BY LATE 1991 CUT OFF FROM SUBSIDIZED SOVIET FUEL SIHANOUKVILLE'S POWER OUTPUT DWINDLED TO FIVE HOURS A DAY JUST AS CAMBREW WANTED TO BEGIN TESTING ITS REBUILT ELECTRICAL SYSTEM THAT FORCED THE COMPANY TO SURVIVE FOR A TIME ON ITS OWN SMALL GENERATOR HELP ARRIVED IN EARLY 1992 WHEN MALAYSIAN VENTURE CAPITALISTS INCLUDING BUSINESSMEN DATUK YAP LIM SEN AND GOH NAN KIOH BOUGHT A MAJORITY STAKE IN CAMBREW FROM MESSRS HARPER AND NG BUT BY MIDYEAR CAMBODIA HAD BEGUN TO ATTRACT MORE INVESTMENT INTEREST WITH THE ARRIVAL OF THE UN PRESSURE WAS GROWING TO GET A PRODUCT TO MARKET BEFORE COMPETITORS MOVED IN WITH COSTS MOUNTING THE JITTERY CAMBREW INVESTORS RECRUITED MR PWEE TO LOOK THINGS OVER HE RECOMMENDED AN IMMEDIATE JUMP INTO PRODUCTION IT WAS A CALCULATED RISK THERE WAS NO TIME TO DO A COMPLETE REFURBISHING MR PWEE SAYS JUST TO MAKE IT RUN WAS THE GOALYOU MUST PRODUCE TO SURVIVE HE WAS INSTALLED AS BREWERY MANAGER ON THE FIRST DAY OF OCTOBER LAST YEAR ON OCT 2 I BREWED PWEE SAYS ANGKOR'S MAIN COMPETITORS ARE BRANDS SUCH AS TIGER AND HEINEKEN BOTH PRODUCED BY SINGAPOREBASED ASIA PACIFIC BREWERIES LTD AND CARLSBERG IMPORTED FROM SOUTHEAST ASIAN UNITS OF THE DANISH BREWER SUCH BIG PLAYERS WITH DEEP POCKETS AND SOPHISTICATED PROMOTIONAL SKILLS TOOK AN EARLY LEAD IN THE MARKET BUT CAMBREW IS GAINING GROUND AIDED BY A STRONG PRICE ADVANTAGE AND A NOWSTEADY SUPPLY OF ITS PRODUCT IN MOST URBAN AREAS ANGKOR IS AMONG THE TOP THREE SELLERS MEANWHILE THE PLANT REHABILITATION HAS ALREADY PRODUCED ONE POTENTIALLY PROFITABLE SPINOFF FOR CAMBREW LAST MONTH ANGKOR BEVERAGE CO A JOINT VENTURE WITH A UNIT OF PEPSICO INC BEGAN BOTTLING SOFT DRINKS AT THE BREWERY UNDER LICENSE BUT PLENTY OF CHALLENGES REMAIN TAKE SECURITY FOR EXAMPLE WHEN CAMBREW LOST A TRUCKLOAD OF ANGKOR IN JANUARY TO THIRSTY HIJACKERS IT SOUGHT COMPENSATION FROM THE GOVERNMENT BUT ALL IT RECEIVED WAS A LACONIC REMINDER THERE'S A WAR ON 9304190127 930419 WORKING THE KINKS OUT OF WORKERS' COMP BY GARVIN O'NEIL IMAGINE OPENING YOUR MAIL ONE DAY AND FINDING AMID THE STANDARD FARE A RENEWAL NOTICE FOR YOUR WORKERS' COMPENSATION INSURANCE REQUIRING A PREMIUM PAYMENT OF 12 MILLION A DOUBLEDIGIT INCREASE OVER THE PREVIOUS YEAR TWO YEARS AGO WE FACED THIS SCENARIO AT THE ADOLPHUS A 435ROOM LUXURY HOTEL IN DOWNTOWN DALLAS THE STATE WORKERS' COMPENSATION PROGRAM OF WHICH WE WERE THEN A PART THUS COMPELLED US TO TAKE A LEAP OF FAITH INTO NONSUBSCRIBER STATUS THIS ACTION ULTIMATELY ALLOWED US TO OFFER OUR EMPLOYEES MORE AND BETTER BENEFITS FOR WORKRELATED INJURIES AT LEAST WE HAD THIS OPTION SOME STATES MANDATE PARTICIPATION IN THEIR WORKERS' COMP PROGRAMS AND PRESIDENT CLINTON'S TASK FORCE ON HEALTH CARE REFORM IS APPARENTLY CONSIDERING MANDATED PARTICIPATION IN A FEDERAL WORKER'S COMP PROGRAM BUT BEFORE THE TASK FORCE BEGINS MANDATING PROGRAMS THAT WORK ONLY IN THEORY THEY OUGHT TO CONSIDER WHAT WORKS AND WHAT DOESN'T WORK IN REALITY SIMPLY PUT HAD WE NOT TAKEN THE PLUNGE INTO INDEPENDENT NONSUBSCRIBER STATUS IT COULD VERY WELL HAVE MEANT THE DEATH OF A PROPERTY THAT HAS BEEN A DALLAS INSTITUTION FOR MORE THAN 80 YEARS THE IMPETUS FOR THE HOTEL BECOMING A NONSUBSCRIBER CAME WITH WHAT WE PERCEIVED AS INHERENT FRAUD IN WORKERS' COMPENSATION OUR DIRECTOR OF HUMAN RESOURCES KAREN RANKER WAS REPEATEDLY FACED WITH MINOR INJURY CASES THAT WERE PERPETUATED BY EMPLOYEES INTENT UPON MILKING THE SYSTEM FOR ITS BENEFITS THEY SHOPPED FOR DOCTORS AND LAWYERS WHO WOULD SUPPORT THEIR CASES CREATING A WEB OF DECEIT THAT WAS UNWITTINGLY ENDORSED BY THE STATE OF TEXAS MS RANKER WAS CONVINCED THAT THERE HAD TO BE A BETTER WAY OF TAKING CARE OF LEGITIMATE INJURY CLAIMS WITHOUT CODDLING THE ARTFUL DODGERS ENCOURAGED BY OTHER COMPANIES THAT HAD BECOME NONSUBSCRIBERS SHE BEGAN TO INVESTIGATE THE ALTERNATIVES TO WORKERS' COMPENSATION ACCORDING TO JAMES KARGER A LABOR ATTORNEY WHO REPRESENTS THE ADOLPHUS MANY EMPLOYERS FOUND THAT ESTABLISHING AN INTERNAL BENEFIT PLAN FOR INJURED EMPLOYEESAND INSURING AROUND THE NEGLIGENCE EXPOSURECOST FAR LESS THAN WORKERS' COMP IT ALSO PROVIDED THEM A NUMBER OF CREATIVE OPTIONS NOT AVAILABLE TO THOSE EMPLOYERS WHO STAYED WITHIN THE SYSTEM WHEN MS RANKER MADE HER FIRST PROPOSAL THAT WE DROP OUT OF THE STATE INSURANCE SYSTEM NONSUBSCRIPTION STATUS WAS UNKNOWN TERRITORY THAT THE OWNERS WEREN'T READY TO ENTER TWO YEARS LATER OUR PREMIUM HAD JUMPED MORE THAN 200 WITH THE VERY REAL PROSPECT OF ITS ERASING THE HOTEL'S CURRENT AND FUTURE PROFITS MS RANKER'S PLAN NOW HAD EVERYONE'S ATTENTION AND SHE WAS GIVEN THE GO AHEAD TO FLESH IT OUT WHAT SHE DEVELOPED CAME TO BE KNOWN AS THE ACE PLAN THE ACRONYM DERIVED FROM THE MOTTO THE ADOLPHUS CARES FOR ITS EMPLOYEES IT BECAME OUR DECLARATION OF INDEPENDENCE FROM WORKERS' COMPENSATION AND OUR INSURANCE POLICY FOR PROTECTING THE HOTEL'S 400 EMPLOYEES IN FACT THE HOTEL'S PLAN OFFERED A BETTER BENEFIT AND CARE PROGRAM FOR LEGITIMATE CLAIMS THAN THE STATE'S PLAN IMPLICIT IN ITS TENETS WERE THREE OBJECTIVES 1 TO REASSURE OUR EMPLOYEES THAT THE HOTEL WAS COMMITTED TO PROVIDING A SAFE WORK ENVIRONMENT 2 TO PREVENT INCIDENTS THROUGH TRAINING AND SAFE WORK PRACTICES AND 3 TO COMPENSATE EMPLOYEES FAIRLY FOR ANY WORKRELATED INJURIES SHOULD ANY INCIDENTS OCCUR THE FIRST OBJECTIVE WAS ACHIEVED THROUGH A SERIES OF EMPLOYEE MEETINGS AND INITIATIVES INCLUDING THE HIRING OF AN ACE MANAGER REBECCA ROJOTAYLOR TO MONITOR THE PROGRAM ON A DAYTODAY BASIS MS ROJOTAYLOR WAS RESPONSIBLE FOR SAFETY TRAINING INVESTIGATING ACCIDENTS SCOUTING THE PROPERTY FOR HAZARDS ORGANIZING A SAFETY COMMITTEE AND PROMOTING EMPLOYEE SAFETY THROUGH SPECIAL ACTIVITIES AND EVENTS HER MANDATE WAS TO REDUCE THE NUMBER OF EMPLOYEE ACCIDENTS AND THE AMOUNT OF LOST WORK TIME WITH THE STATE'S SAFETY NET GONE IT BECAME IMPERATIVE THAT THE HOTEL'S WORKING ENVIRONMENT BE FREE OF ALL POSSIBLE HAZARDS AND THAT ITS STAFF BE TRAINED TO PUT SAFETY FIRST IN ALL ITS INTERACTIONS AMONG THE MANY PREVENTIVE ACTIONS TAKEN WERE THE PLACEMENT OF NOSKID RUNNERS IN AREAS THAT WERE FREQUENTLY SPLASHED WITH WATER THE PERIODIC TRAINING OF DISHWASHERS IN THE HANDLING OF COMMERCIAL CLEANSERS AND THE HEIGHTENING OF SAFETY AWARENESS THROUGH THE GENERAL DISTRIBUTION OF PAMPHLETS VIDEOS AND QUIZZES THAT FOCUSED ON PARTICULAR ASPECTS OF EMPLOYEE SAFETY FOR ONTHEJOB INJURIES THE ACE PLAN PROVIDED NOT ONLY MEDICALCARE BENEFITS BUT ALSO LOSTTIME BENEFITS EXCEEDING THOSE PROVIDED BY THE STATE SYSTEM THE OBJECTIVE WAS TO RENDER IMMEDIATE AID TO THE INJURED EMPLOYEE OBTAIN AND PAY FOR THE BEST MEDICAL CARE AND PROVIDE COMPENSATION FOR TIME LOST BECAUSE OF THE INJURY WE ALSO ADDED A SIMPLE AND VERY EFFECTIVE PROVISO THE HOTEL AS THE UNDERWRITER OF THE PLAN WOULD NOW BE THE ARBITER OF THE APPROVED MEDICAL PROVIDER NO LONGER COULD THE EMPLOYEE SHOP FOR MEDICAL CARE THAT SUPPORTED SPURIOUS INJURY CLAIMS EMPLOYEES WERE PROMISED UP FRONT THAT THEY WOULD RECEIVE PROMPT ATTENTION AND EASY ACCESS TO QUALITY MEDICAL CARE MS RANKER EXPLAINS BUT BY THE SAME TOKEN WE NEEDED TO BE ASSURED OF HAVING HEALTHCARE GIVERS THAT WE COULD TRUST THROUGH A CORE OF MEDICAL PROFESSIONALS WE WERE ABLE TO DEVELOP A MEDICAL NETWORK COVERING THE METROPLEX IN OCTOBER 1991 WE ADOPTED THE ACE PLAN IN OUR FIRST FULL YEAR AS A NONSUBSCRIBER WE SAW OUR NUMBER OF LOSTTIME INJURIES FALL TO 11 FROM 37 THE ACTUAL LOST DAYS DUE TO WORKRELATED INJURIES PLUMMETED TO 115 FROM 707 THE MANY CASES OF INCURABLE SPRAINED ANKLES AND BACKS MIRACULOUSLY DISAPPEARED THE COST OF THE ACE PLAN IS A FRACTION OF THE COST OF WORKERS' COMPENSATION HAD WE STAYED ON AS A SUBSCRIBER OUR 1992 PREMIUM WOULD HAVE EXCEEDED 2 MILLION THE ADOLPHUS COMPLETELY UNDERWROTE ITS OWN PLAN FOR A LITTLE MORE THAN 300000 THAT INCLUDED MEDICAL FEES WAGES AND BENEFITS COMPUTER LEASE INCENTIVES EDUCATION DUES AND SUBSCRIPTIONS A CONTINGENCY APPROPRIATION AND EXCESS INSURANCE FOR CATASTROPHIC COVERAGE PLEASE NOTE THAT LEGAL FEES WERE NOT OMITTED THERE WERE NONE AND THERE IS MORE GOOD NEWS MUCH OF WHAT WE SAVED IN PREMIUMS HAS BEEN PLOWED BACK INTO ELIMINATING HAZARDS AND DEVELOPING EMPLOYEE EDUCATION PROGRAMS WE ALSO HAVE MORE RESOURCES TO DEVOTE TO OUR PRINCIPAL BUSINESS PLEASING OUR GUESTS FROM TIME TO TIME SOME MEMBERS OF THE TEXAS LEGISLATURE HAVE ENTERTAINED THE ABSURD NOTION OF MAKING THE STATE'S WORKERS' COMPENSATION PROGRAM MANDATORY MORE OFTEN THAN NOT STATEMANDATED WORKERS' COMPENSATION PLANS ARE OBSCENE SYSTEMS OF FRAUD DECEPTION AND GREED WHAT IS NEEDED IS NOT MORE LEGISLATION TO PERPETUATE THIS TRAVESTY BUT AN ATTEMPT BY STATEHOUSES AND THE WHITE HOUSE TO ENCOURAGE PRIVATE INITIATIVES THAT BENEFIT HONEST EMPLOYEES AND EMPLOYERS ALIKE MR O'NEIL IS MANAGING DIRECTOR OF THE ADOLPHUS 9304190126 930419 FINANCING BUSINESS AMERICAN ELECTRIC POWER CO AMERICAN ELECTRIC POWER CO COLUMBUS OHIO SAID ITS COLUMBUS SOUTHERN POWER CO UNIT WILL REDEEM ON MAY 15 THE ENTIRE PRINCIPAL AMOUNT OUTSTANDING OF ITS 92 FIRST MORTGAGE BONDS DUE 1998 AND ITS 945 FIRST MORTGAGE BONDS DUE 1996 THAT WERE NOT PREVIOUSLY CALLED FOR REDEMPTION THE COMPANY SAID THE REDEMPTION PRICE FOR THE 92 BONDS WILL BE 10192 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST FROM MARCH 1 THE REDEMPTION PRICE FOR THE 945 BONDS WILL BE 101 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST FROM MAY 1 THE COMPANY SAID THE REDEMPTIONS ARE BEING MADE UNDER TERMS OF THE BONDS WHICH ALLOW FOR REDEMPTION PRIOR TO THEIR MATURITY CITICORP'S CITIBANK NA UNIT NEW YORK IS THE REDEMPTION AGENT 9304190125 930419 COURT DATE IS SET IN APPLE SUIT SAN FRANCISCO A FEDERAL JUDGE HERE SET A COURT DATE FOR LIKELY RESOLUTION OF THE MOSTLY DISMISSED COPYRIGHT SUIT BROUGHT BY APPLE COMPUTER INC AGAINST MICROSOFT CORP AND HEWLETTPACKARD CO JUDGE VAUGHN WALKER SCHEDULED FOR MAY 5 SUMMARY JUDGMENT MOTIONS RELATED TO THREE REMAINING COPYRIGHT INFRINGEMENT ITEMS APPLE HAD INITIALLY CLAIMED 200 SUCH ITEMS OR FEATURES OF THE DEFENDANTS' SOFTWARE THAT ALLEGEDLY DUPLICATED THE LOOK AND FEEL OF ITS MACINTOSH COMPUTERS A YEAR AGO THE JUDGE DENIED MOST OF THESE SPECIFIC CLAIMS AND LAST AUGUST BROADLY AFFIRMED THAT RULING APPLE CUPERTINO CALIF INITIALLY ESTIMATED THE SUIT WOULD YIELD 55 BILLION IN DAMAGES MICROSOFT IS BASED IN REDMOND WASH AND HP IS IN PALO ALTO CALIF 9304190124 930419 EC TO UNVEIL PACKAGE TO SPUR ECONOMY BUT SOME EXPECT LITTLE IMPACT FROM IT BY JULIE WOLF SPECIAL TO THE WALL STREET JOURNAL BRUSSELS THE EUROPEAN COMMUNITY TODAY UNVEILS ITS PACKAGE TO STIMULATE ECONOMIC GROWTH AMID SKEPTICISM THAT IT WILL HAVE MUCH IMPACT ON EUROPE'S STAGNATING ECONOMY AN 82PAGE REPORT TO BE PRESENTED BY THE EC COMMISSIONER FOR ECONOMIC AFFAIRS HENNING CHRISTOPHERSEN TO COMMUNITY FINANCE MINISTERS IN LUXEMBOURG SAYS THAT NATIONAL AND EC MEASURES WILL AIM TO BOOST EC GROWTH BY 06 NEXT YEAR BY ADDING 35 BILLION EUROPEAN CURRENCY UNITS 4246 BILLION IN INVESTMENT BUT ECONOMIC ANALYSTS AND EC DIPLOMATS SAID THE PLAN APPEARS TO INCLUDE LITTLE IN THE WAY OF NEW MEASURES TO STIMULATE GROWTH INSTEAD GROUPING TOGETHER NATIONAL INVESTMENT THAT WOULD HAVE OCCURRED ANYWAY MOREOVER MOST OF THE 06 IN EXTRA GROWTH ALREADY HAS BEEN FACTORED INTO THE EC COMMISSION'S FORECAST FOR A 18 INCREASE IN THE EC'S GROSS DOMESTIC PRODUCT IN 1994 FOR THIS YEAR THE COMMISSION HAS PREDICTED GDP GROWTH OF 08 BUT COULD BE FORCED TO LOWER THAT FIGURE IF RECESSIONS IN MAJOR EC ECONOMIES DEEPEN THE GROWTH PACKAGE FOLLOWS THE DECISION BY EC LEADERS AT THEIR DECEMBER SUMMIT IN EDINBURGH SCOTLAND TO ALLOCATE EC MONEY TO BOLSTER ECONOMIC GROWTH THE SUMMIT AGREED TO ESTABLISH A NEW FIVE BILLIONECU LENDING FACILITY AT THE EUROPEAN INVESTMENT BANK WHICH ALREADY HAS BEGUN USING THIS MONEY TO FINANCE PROJECTS IN THE EC AND TO SET UP A EUROPEAN INVESTMENT FUND WITH CAPITAL OF TWO BILLION ECUS THE EIF HAS YET TO BE FORMALLY ESTABLISHED AND ISN'T EXPECTED TO BEGIN LENDING UNTIL THE END OF THIS YEAR THE COMMISSION CALCULATES THAT THE EIF COULD LEND AS MUCH AS 10 BILLION ECUS WHICH WOULD ALLOW IT TO FINANCE PROJECTS ESPECIALLY FOR PUBLIC WORKS AND INFRASTRUCTURE TOTALING 20 BILLION ECUS THE EIB'S NEW FACILITY MEANWHILE COULD FINANCE AN ADDITIONAL 10 BILLION ECUS IN PROJECTS NATIONAL MEASURES WOULD ACCOUNT FOR FIVE BILLION ECUS IN INVESTMENT THE COMMISSION ESTIMATES OBVIOUSLY THEY THE COMMISSION AND MINISTERS ARE GOING TO BE ANXIOUS TO PRESENT THE PACKAGE AS SOMETHING THAT CAN REALLY BOOST GROWTH AND CONFIDENCE SAID SUSIE SYMES DIRECTOR OF THE EUROPEAN PROGRAM AT THE ROYAL INSTITUTE OF INTERNATIONAL AFFAIRS IN LONDON BUT SHE ADDED IT WOULDN'T BE SURPRISING TO FIND THAT IT'S JUST A COLLECTION OF NATIONAL MEASURES THAT WOULD HAVE BEEN TAKEN ANYWAY ACCORDING TO MS SYMES THERE'S NO EVIDENCE TO SUGGEST THAT THERE IS MORE COOPERATION BETWEEN THEM EC COUNTRIES TO ADD TO GROWTH MORE THAN WOULD OTHERWISE HAVE HAPPENED EVEN SOME OF THE EC LENDING AGREED TO IN EDINBURGH COULD BE SUBSTITUTED FOR NATIONAL FUNDS OR USED TO PAY FOR PROJECTS THAT WERE ALREADY PLANNED SHE SAID A BRITISH OFFICIAL SAID THE PART OF THE REPORT CONCERNING HIS COUNTRY WAS MADE UP OF MEASURES ALREADY ANNOUNCED LAST AUTUMN OR IN LAST MONTH'S BUDGET HE CAUTIONED AGAINST TRYING TO PUT A FIGURE ON THE SIZE OF THE PACKAGE ESPECIALLY GIVEN THAT THERE COULD BE SOME OVERLAP BETWEEN PROJECTS ANNOUNCED NATIONALLY AND THOSE TO BE FINANCED BY THE EC OFFICIALS FROM OTHER COUNTRIES SAID THAT VIRTUALLY THE ONLY NATIONAL MEASURES THAT HADN'T BEEN INCLUDED IN BUDGETS ALREADY WERE THE GERMAN SOLIDARITY PACT AND A SPANISH PLAN THE GOVERNMENT OF DENMARK WHICH CURRENTLY HOLDS THE EC PRESIDENCY ATTACHES GREAT IMPORTANCE TO THE GROWTH PLAN VIEWING IT AS A WAY TO CONVINCE DANISH VOTERS OF THE EC'S EFFECTIVENESS THE EC FINANCE MINISTERS PROBABLY WILL STRESS THAT THE EC PLAN SHOULD BE VIEWED ALONGSIDE WITH EFFORTS IN THE US AND JAPAN TO BOOST ECONOMIC GROWTH DENMARK MAY PUSH FOR EC COUNTRIES TO BUILD ON TODAY'S PLAN BY AGREEING ON FURTHER EFFORTS TO STIMULATE GROWTH BUT ANY SECOND PACKAGE IS UNLIKELY TO EMERGE BEFORE THE JUNE COPENHAGEN SUMMIT OF EC LEADERS FINANCE MINISTERS FROM THE EUROPEAN FREE TRADE ASSOCIATION WILL MEET THE EC FINANCE MINISTERS TODAY TO PRESENT THEIR OWN GROWTH PLAN 9304190123 930419 VIOLENCE AND THE VERDICT BY MARK THOMPSON LOS ANGELES WHEN THE TWO GUILTY VERDICTS IN THE SECOND RODNEY KING TRIAL WERE ANNOUNCED ON SATURDAY CITY RESIDENTS HERE BREATHED A SIGH OF RELIEF A SECOND RIOT DID NOT HAPPEN THOUSANDS OF EXTRA POLICE OFFICERS AND NATIONAL GUARD TROOPS WILL SOON DISAPPEAR FROM THE STREETS AND LIFE WILL RETURN TO NORMAL THAT IS RESIDENTS WILL GO BACK TO WORRYING ABOUT MURDER ASSAULT DRIVEBY SHOOTINGS CAR HIJACKINGS AND GANG WARFARE VIOLENT CRIME IS LA'S WORST PROBLEM BY FAR UNFORTUNATELY THE AGITATION OVER THE RODNEY KING INCIDENT CAUSED MANY PEOPLE TO LOSE SIGHT OF THAT FACT AT A CANDLELIGHT VIGIL IN SOUTH ANGELES ON APRIL 8 ABOUT 50 PEOPLE GATHERED TO PROTEST THE LAPD SHOOTING OF A MAN WHO OFFICERS SAY SHOT A NEIGHBOR'S DOG REFUSED TO DROP HIS GUN WHEN CONFRONTED BY POLICE AND BEGAN FIRING THE PROTEST LEADER THE REV MONROE WOODS JR SAID I'M VERY CONCERNED ABOUT THE KILLING OF YOUNG AFRICANAMERICAN MEN THE CROWD CHANTED STOP THE KILLING WHETHER THAT SHOOTING WAS JUSTIFIED OR NOT POLICE ARE NOWHERE NEAR BEING A LEADING CAUSE OF DEATH AMONG YOUNG BLACK MEN IN LOS ANGELES IN FACT IN 1992 THE YEAR OF THE DEADLY RIOTS ONLY 25 PEOPLE OF ALL RACES WERE KILLED BY LAPD OFFICERS 42 TIMES MORE PEOPLE WERE KILLED BY CRIMINALS A DISPROPORTIONATE NUMBER OF THEM YOUNG AFRICANAMERICAN MEN MURDERED BY THEIR PEERS SOME AFRICANAMERICAN SPOKESMEN IN A TRAGICALLY MISGUIDED ATTEMPT TO KEEP THE MORAL HIGH GROUND IN THE DEBATE ABOUT POLICE BRUTALITY BELIEVE THEY MUST PLAY DOWN CRIME'S FEROCIOUS TOLL ON THEIR COMMUNITY THE REV CECIL MURRAY A PROMINENT BLACK MINISTER USED HIS TIME ON A RECENT TELEVISED TOWN HALL GATHERING TO SUGGEST THAT THE MEDIA HAVE CONCOCTED A MYTH ABOUT HIGH CRIME IN INNERCITY NEIGHBORHOODS WHILE COVERING UP WHITE VIOLENCE YEARS OF SUCH EVASIONS MAY BE ONE REASON THE PROBLEM HAS GOTTEN OUT OF HAND THE HOMICIDE RATE IN LOS ANGELES COUNTY WHICH HIT A RECORD OF 28 PER 100000 RESIDENTS LAST YEAR HAS NEARLY TRIPLED IN THE LAST TWO DECADES PREDOMINANTLY WHITE COMMUNITIES HAVE BEEN SPARED THAT LEVEL OF CARNAGE VENTURA COUNTY WHICH BORDERS LOS ANGELES TO THE NORTH FOR EXAMPLE HAS AVERAGED ABOUT FIVE HOMICIDES PER 100000 IN RECENT YEARS A RECENT SURVEY ON THE CAUSES OF MORTALITY IN CALIFORNIA REVEALS THAT OVER THE PAST DECADE HOMICIDE HAS BECOME THE LEADING CAUSE OF DEATH AMONG AFRICANAMERICAN MEN IN THE 16TO29 AGE GROUP IN PARTS OF LOS ANGELES IN THE SAME INNERCITY NEIGHBORHOODS BULLETS HAVE BECOME THE MOST COMMON CAUSE OF SPINALCORD INJURY THE SORT OF DAMAGE INFLICTED BY SPORTING MISHAPS IN THE REST OF THE STATE MANY POLLS HAVE CONFIRMED THAT AFRICAN AMERICANS FEAR CRIME MORE THAN ANY OTHER ETHNIC GROUP IN THE CITY AND FOR GOOD REASON A LOS ANGELES TIMES SURVEY CONDUCTED LAST FALL FOR ONE SHOWED THAT TWICE AS MANY BLACK FAMILIES AS WHITE HAD A HOUSEHOLD MEMBER WHO HAD FALLEN VICTIM TO A CRIME INVOLVING A GUN THE SURVEY ALSO FOUND THAT ONE PERSON NEARLY EVERY HOUR IS FELLED BY GUNFIRE IN LOS ANGELES COUNTY A MAP OF SHOOTINGS ACCOMPANYING THE TIMES'S REPORT SHOWED THAT THE COMBAT ZONE WAS CENTERED NO SURPRISE TO ANYONE EXCEPT PERHAPS MR MURRAY IN INNERCITY NEIGHBORHOODS THE COSTS OF SUCH VIOLENCE EXTEND FAR BEYOND THE TOLL OF DEAD AND WOUNDED ALEX KELTER CHIEF OF EMERGENCY PREPAREDNESS IN THE DEPARTMENT OF HEALTH SERVICES NOTES THAT THE EMERGENCY MEDICAL SYSTEM ITSELF IS AN EARLY CASUALTY OF ESCALATING CRIME MOST GUNSHOT VICTIMS DON'T HAVE INSURANCE COVERAGE MAKING THE RATIO OF PENETRATING WOUNDS INFLICTED WITH KNIVES AND GUNS TO BLUNT TRAUMA INJURIES TYPICALLY SUSTAINED IN CAR CRASHES A RELIABLE INDICATOR OF WHETHER AN EMERGENCY MEDICAL CENTER CAN STAY IN BUSINESS TO THE EXTENT THAT TRAUMA CENTERS HAVE BEEN CLOSING AND THEY'VE BEEN CLOSING IN DROVES IN SOUTHERN CALIFORNIA IT IS BECAUSE THE COST OF PENETRATING INJURIES IS CAUSING THEM TO LOSE MILLIONS OF DOLLARS A YEAR DR KELTER SAYS CRIME DOES NOT APPEAR HIGH ON THE LIST OF REASONS FOR JOB FLIGHT FROM THE GREATER LOS ANGELES AREA JUDGING FROM BUSINESS CLIMATE STUDIES THAT'S BECAUSE MOST MAJOR EMPLOYERS HAVE LONG SINCE FLED HIGH CRIME AREAS AND HAVE SETTLED IN POCKETS OF RELATIVE CALM BUT CRIME CERTAINLY WREAKS HAVOC ON THE SMALL BUSINESSES TRYING TO MAKE IT IN INNERCITY NEIGHBORHOODS MOMANDPOP MERCHANTS OF ALL RACES CAUGHT THE BRUNT OF THE ARSON AND LOOTING LAST SPRING WITH KOREANS HIT ESPECIALLY HARD MORE THAN 2200 KOREANOWNED BUSINESSES 20 OF THE TOTAL IN LOS ANGELES WERE HEAVILY DAMAGED OR DESTROYED AND FEW OF THE VICTIMS HAVE RECOVERED FROM THEIR LOSS MAYHEM ON A SMALLER SCALE IS A DAILY OCCURRENCE IN FEBRUARY ALONE NINE KOREAN MERCHANTS IN THE LOS ANGELES AREA WERE SHOT DURING ROBBERIES FOUR OF THEM FATALLY SINCE LAST YEAR'S RIOTS FEAR OF CRIME IN KOREATOWN HAS CAUSED A DROP IN BUSINESS OF 20 TO 40 ACCORDING TO NEWS REPORTS AND INSURANCE RATES HAVE GONE HIGHER THAN EVER IF INSURANCE IS AVAILABLE AT ALL CRUSADER INSURANCE CO ONE SMALL FIRM THAT TOOK PRIDE IN SERVING INNERCITY NEIGHBORHOODS THAT MAJOR INSURERS WOULDN'T TOUCH AND THAT PAID OUT 21 MILLION IN CLAIMS LAST YEAR ABRUPTLY CANCELED RIOT COVERAGE FOR 1200 SMALL BUSINESSES TWO WEEKS AGO AS THE END OF THE SECOND RODNEY KING TRIAL DREW NEAR INNERCITY CULTURAL LIFE HAS ALSO BEEN A CASUALTY THE WATTS SUMMER FESTIVAL STARTED AFTER THE 1965 WATTS RIOTS AS PART OF A REVITALIZATION CAMPAIGN WAS CANCELED IN 1989 BECAUSE OF GANG VIOLENCE BEFORE BEING REVIVED TWO YEARS LATER IN GREATLY SCALED DOWN FORM ON GANG NEUTRAL TURF OUTSIDE WATTS LIKEWISE THE ANNUAL PICNIC OF THE UCLA CHAPTER OF AN ASSOCIATION OF BLACK FRATERNITIES CHANGED ITS VENUE FOUR YEARS AGO TO A PARK IN THE MOSTLY WHITE SAN FERNANDO VALLEY TO ESCAPE THE OUTSIDE ELEMENT THAT HAD PLAGUED THE GATHERINGS WHEN THEY WERE HELD IN MOSTLY BLACK SOUTH LOS ANGELES LAST SPRING THE THUGS CAUGHT UP WITH THE COLLEGE STUDENTS CRASHING THE PICNIC AND PROVOKING A GUN BATTLE THAT LEFT TWO DEAD AND FOUR WOUNDED INSTEAD OF BROWBEATING WHITES FOR BEING CONCERNED ABOUT THE EPIDEMIC OF INNERCITY VIOLENT CRIME AFRICANAMERICAN LEADERS COULD DO EVERYONE A FAVOR BY ADMITTING THAT THERE IS INDEED A PROBLEM AND THAT BLACKS THEMSELVES HAVE AN INTEREST IN SOLVING IT THE ALTERNATIVE IS MORE RACIAL POLARIZATION AND MORE CRIME CONSIDER THE SOCALLED REGINALD DENNY CASE ALSO KNOWN AS THE WHITE TRUCK DRIVER CASE SCHEDULED TO GO TO TRIAL THIS JULY IN WHICH THREE MEN ARE CHARGED WITH VICIOUS ASSAULTS COMMITTED ON LIVE TELEVISION AT THE START OF LAST SPRING'S RIOTS DEFENSE ATTORNEYS AND SOME LEADERS IN THE AFRICANAMERICAN COMMUNITY HAVE ATTEMPTED TO PORTRAY THE ATTACK ON MR DENNY AS A CAREFULLY MEASURED POLITICAL RESPONSE TO A COMPARABLE ASSAULT ON RODNEY KING THE MEN THEY SAY DESERVE TO BE TREATED NO MORE HARSHLY THAN THE POLICE WHO BEAT MR KING THE MEDIA HAVE HAPPILY OBLIGED THIS VIEW OF THE CASE THE LOS ANGELES TIMES REPORT LAST AUG 12 ON THE FILING OF FELONY INDICTMENTS AGAINST THE THREE MEN WENT TO THE TROUBLE OF NOTING THAT THE DEFENDANTS WOULD STAND TRIAL IN ATTACKS ON 13 VICTIMS INCLUDING TRUCK DRIVER REGINALD O DENNY BUT BY THE BEGINNING OF THIS YEAR FLEETING REFERENCE TO THE OTHER VICTIMS HAD DROPPED TO THE BOTTOM OF NEWS STORIES NOW MOST NEWS REPORTS AND COMMENTARIES MAKE NO MENTION OF THE OTHER VICTIMS WHO WERE LATINOS AND ASIANS THUS THE CASE OF LOPEZ HIRATA DENNY ET AL A POWERFUL SYMBOL OF THE WIDE SWATH CUT BY CRIME THROUGH LOS ANGELES HAS BECOME A DUBIOUS SYMBOL OF RACIAL BIAS IN THE COURTS IN AN APRIL 7 OPED PIECE IN THE LA TIMES EXPLAINING WHY THE TWO CASES ARE SO MUCH ALIKE KAREN GRIGSBY BATES A REGULAR CONTRIBUTOR TO THE PAGE APPROVINGLY QUOTED AN AFRICANAMERICAN GRANDMOTHER IF THOSE COPS HADN'T DONE WHAT THEY DID THERE WOULDN'T HAVE BEEN A RIOT AND REGINALD DENNY WOULDN'T HAVE BEEN HURT MAYBE SO BUT TENS OF THOUSANDS OF OTHER LOS ANGELES RESIDENTS MOSTLY POOR AND NONWHITE WOULD HAVE FALLEN VICTIM TO VIOLENT CRIME MAKING EXCUSES FOR THOSE WHO ATTACKED 13 PASSERS BY MEN AND WOMEN OF SEVERAL COLORS WILL ENSURE THAT THE CARNAGE CONTINUES IT'S TIME TO FACE UP TO THE STAGGERING COSTS OF CRIME DOING SO FAR FROM EXACERBATING RACIAL DIVISIONS CAN BRING THE DIFFERENT RACES OF LOS ANGELES TOGETHER IN A COMMON CRUSADE AGAINST A COMMON MENACE MR THOMPSON IS SENIOR EDITOR OF THE LOS ANGELES DAILY JOURNAL 9304190122 930419 INDIAN TRIBE ALLOWED TO OPEN FIRST CASINO IN NEW YORK STATE ALBANY NY GOV MARIO CUOMO APPROVED AN AGREEMENT THAT WILL ALLOW THE ONEIDA INDIAN TRIBE TO OPEN THE FIRST LEGAL GAMBLING CASINO IN THE STATE NEAR ROME NY SOMETIME THIS SUMMER THE ONEIDAS' 10 MILLION CASINO IS BEING BUILT ON TRIBEOWNED LAND JUST OFF ITS 32ACRE RESERVATION CLOSE TO THE NEW YORK THRUWAY WHEN COMPLETE THE CASINO WILL INCLUDE BLACKJACK CRAPS AND ROULETTE HOWEVER SLOT MACHINES WILL BE PROHIBITED THE MOHAWK TRIBE FROM THE ST REGIS INDIAN RESERVATION IN NORTHERN NEW YORK ALSO IS REPORTEDLY CLOSE TO AN AGREEMENT THAT WOULD ALLOW THE TRIBE TO BUILD AND OPERATE CASINOS ON THEIR LAND 9304190121 930419 WHEN EAST MEETS WEST IN SPACE CHALLENGES ABOUND IT DOES TAKE A ROCKET SCIENTIST TO MAKE A US SATELLITE FIT ON A RUSSIAN LAUNCHER BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON IT'S A FAMILIAR HEADACHE IN THE JET AGE YOU'RE VISITING ANOTHER COUNTRY SAY RUSSIA AND THE ELECTRICAL GIZMO YOU'VE BROUGHT ALONG DOESN'T MATCH THE LOCAL OUTLET HOW DO YOU GET IT WORKING IF YOU'RE IN THE SATELLITE BUSINESS YOU USE A SWEDISH ADAPTOR JOINING A US SATELLITE TO A RUSSIAN ROCKET IS JUST ONE OF THE UNUSUAL PREPARATIONS UNDER WAY FOR THE FIRST LAUNCH IN 1995 OF A WESTERN COMMERCIAL SATELLITE ON A RUSSIAN ROCKET THE PROJECT FOR WHICH A CONTRACT WAS COMPLETED LAST WEEK WAS COMMISSIONED BY THE LONDONBASED INTERNATIONAL MARITIME SATELLITE ORGANIZATION OR INMARSAT OSTENSIBLY TO TAKE ADVANTAGE OF CUTRATE RUSSIAN ROCKET PRICES THE LAUNCHER WILL PUT IN ORBIT A MOBILE COMMUNICATIONS SATELLITE ONE OF FOUR IN A NEW GENERATION INMARSAT PLANS TO DEPLOY OVER THE NEXT FEW YEARS BUT INMARSAT SPECIALISTS ARE FINDING THIS PROJECT EASIER IN THEORY THAN IN PRACTICE THE SATELLITE IS BEING BUILT BY USBASED MARTIN MARIETTA CORP WHILE THE ROCKET IS FROM MOSCOWBASED DB SALYUT SPACE TECHNOLOGY ALONG WITH EVERYTHING ELSE IN THE TWO COUNTRIESHAS EVOLVED DIFFERENTLY SINCE THE DAYS OF SPUTNIK THE TWO PROGRAMS HAVE BEEN RUNNING IN PARALLEL FOR 35 YEARS WITH NO ATTEMPT TO RECONCILE THEM SAYS EUGENE JILG INMARSAT'S SATELLITE PROGRAMS DIRECTOR IT ISN'T SURPRISING THAT WHEN YOU TRY TO PUT THEM TOGETHER YOU HAVE SOME CHALLENGES FOR INSTANCE THERE'S THE CHICKENONASPIT PROBLEM IN THE WEST WHEN SATELLITES SEPARATE FROM THEIR ROCKETS THEY SPIN LIKE GYROSCOPES IN THE EAST THEY DON'T AS ANY EXPERIENCED BARBECUE OPERATOR KNOWS IF A CHICKEN KEEPS TURNING ON THE SPIT IT COOKS EVENLY IF IT STOPS IT BURNS IN THE SAME WAY THE US SATELLITE WILL BROIL IN THE SUN'S FIERCE RAYS IF IT ISN'T SPINNING SOLUTION ADD EXTRA HEATRESISTANT TILES TO THE INMARSAT SATELLITE'S HULL THIS IS NO TECHNICAL TRIVIA AT FIRST GLANCE INMARSAT'S 36 MILLION LAUNCH CONTRACT WITH DB SALYUT IS FAR CHEAPER THAN THE TYPICAL 60 MILLION WESTERN LAUNCH FEE ALMOST A BANKRUPTCYSALE PRICE BUT ALL THE EXTRAS ANTICIPATED BY INMARSAT WILL PUSH THE FINAL BILL INTO THE SAME RANGE AS A WESTERN LAUNCH SAYS OLOF LUNDBERG INMARSAT'S DIRECTOR GENERAL AND JUST TO PLAY IT SAFE SAYS JOSEPH ELKO MARTIN MARIETTA'S PROJECT MANAGER ALL THE TECHNICAL CHANGES ON THE SATELLITE WILL BE REVERSIBLE IF FOR SOME REASON THE PROTON MISSION DISAPPEARS WE COULD GO BACK EASILY AND FLY IT THE SATELLITE OFF AN ARIANE OR ATLAS ROCKET HE SAYS SO WHY DOES INMARSAT BOTHER WITH RUSSIA AT ALL WHEN IT HAS LONG USED US AND WEST EUROPEAN ROCKETS FOR ITS SATELLITE LAUNCHES IN A WORD GEOPOLITICS INMARSAT IS A 67NATION COOPERATIVE WITH RUSSIA AMONG ITS MEMBERS THAT MANAGES A WORLDWIDE NETWORK OF MOBILECOMMUNICATIONS SATELLITES FOR SHIPS PLANES AND OTHER INTERESTS RUSSIA PAYS 5 OF THE AGENCY'S BUDGET BUT IT HAS NEVER GOTTEN ITS 5 SHARE OF AGENCY CONTRACTS MORE IMPORTANT TOSSING ONE OF INMARSAT'S MANY LAUNCHES TOWARD MOSCOW WAS VIEWED IN WASHINGTON LAST YEAR AS A WAY TO SIGNAL SUPPORT FOR RUSSIAN PRESIDENT BORIS YELTSIN LAST JUNE THENPRESIDENT GEORGE BUSH CONDITIONALLY APPROVED THE LAUNCH AND SO FAR THE CLINTON ADMINISTRATION HASN'T VETOED THE DECISION THERE ARE BROADER ISSUES INVOLVED IN THE LAUNCH SAYS INMARSAT'S MR LUNDBERG IF THE RUSSIAN ECONOMY IS EVER GOING TO INTEGRATE WITH THE WEST THEY MUST BE ALLOWED TO PARTICIPATE IN MARKETS IN AREAS WHERE THEY ARE COMPETENT AND IN SPACE NOBODY QUESTIONS RUSSIA'S RECORD OF COMPETENCE FIRST ORBITING SATELLITE SPUTNIK FIRST MAN INTO SPACE YURI GAGARIN AND FIRST ORBITING SPACE STATION SALYUT WHEREAS THE WEST'S TRUMP CARD IN SPACE HAS BEEN ITS SUPERIOR ELECTRONICS AND GUIDANCE SYSTEMS US SPACE SCHOLARS GENERALLY CREDIT RUSSIA WITH THE BIGGEST BANGIEST ROCKETS PROTON CAN HURL UP TO 21 METRIC TONS INTO A LOW ORBIT AND 33 TONS INTO THE KIND OF DISTANT GEOSTATIONARY ORBIT PREFERRED BY INMARSAT WITH THE MARTIN MARIETTA SATELLITE WEIGHING IN AT A FEATHERWEIGHT 860 KILOGRAMS 1892 POUNDS MINUS ENGINE THE PROTON ISN'T EVEN BREAKING INTO A SWEAT ON THIS LAUNCH SAYS MR JILG BUT THERE ARE OTHER NONTECHNICAL PROBLEMS FOR STARTERS NO MATTER HOW GOOD RUSSIA'S RECORD IN SPACE ITS CURRENT ECONOMIC AND POLITICAL PROBLEMS COULD TURN THE LAUNCH INTO AN EXPENSIVE FIREWORKS DISPLAY LIKE OTHER EXSOVIET INDUSTRIES THE SPACE BUSINESS IS PLAGUED NOWADAYS BY TIGHT BUDGETS LOW MORALE AND POLITICAL INFIGHTING BAIKONUR FORMERLY THE SOVIET LAUNCH SITE IS IN KAZAKHSTAN BUT RUSSIA OWNS MOST OF THE TECHNOLOGY THE TWO COUNTRIES ARE SQUABBLING FOR CONTROL OF THE SITE THERE ARE A FEW COLD WAR HANGOVERS AS WELL TO SAFEGUARD EACH COUNTRY'S PRECIOUS TECHNOLOGY A SPECIAL SOVEREIGN AGREEMENT BETWEEN WASHINGTON AND MOSCOW IS BEING DRAFTED GOVERNMENT INSPECTORS AT THE LAUNCH SITE AND TELEVISION MONITORS AT FACTORIES WILL BE DEPLOYED TO KEEP THE RUSSIANS FROM SNOOPING TOO MUCH INSIDE THE MARTIN MARIETTA SATELLITE OR THE AMERICANS FROM POKING AROUND THE PROTON ROCKET EACH SIDE IS SUPPOSED TO PASS THE OTHER ONLY THE BAREESSENTIAL ENGINEERING DETAILS IT NEEDS TO GET THE SATELLITE ALOFT MEANWHILE ENGINEERS FACE MORE IMMEDIATE ISSUES MOST WESTERN COMMUNICATIONS SATELLITES FOR EXAMPLE AFTER LEAVING THEIR THREESTAGE ROCKETS HAVE THEIR OWN ENGINES OR APOGEE KICK MOTORS TO CARRY THEM ON THE LAST LEG OF THEIR JOURNEY TO AN ORBIT WHOSE FARTHEST POINT OR APOGEE IS 35200 KILOMETERS 21800 MILES OUT RUSSIAN SATELLITES BY CONTRAST GET THERE JUST BY HITCHING A LONGER RIDE ON THE LAUNCH ROCKET WITH AN EXTRA FOURTH STAGE THUS WHEN INMARSAT'S SATELLITE IS PUT ABOARD THE RUSSIAN ROCKET THE KICK MOTOR BECOMES REDUNDANT PROPOSED SOLUTION YANK OUT THE KICK MOTOR AND LET THE PROTON ROCKET DO ALL THE HEAVY LIFTING ANOTHER CHALLENGE IS HOW TO INCORPORATE THAT SWEDISH ADAPTOR OR SATELLITE SEPARATION SYSTEM IT'S NO TRIVIAL ENGINEERING TASK TO MOUNT A SATELLITE ON TOP OF ITS ROCKET SOME KIND OF CLAMP IS NEEDEDSTRONG ENOUGH TO KEEP TIGHT HOLD OF A 50 MILLION TO 100 MILLION PIECE OF ELECTRONIC HARDWARE DURING A BUMPY RIDE BUT FLEXIBLE ENOUGH TO LET GO AT THE END THE VBAND CLAMP IS THE WEST'S ANSWER ON AN ATLAS OR ARIANE ROCKET A STEEL RING WITH A VSHAPED CROSSSECTION GIRDLES THE JOINT BETWEEN SATELLITE AND ROCKET ONCE ALOFT EXPLOSIVE BOLTS BLOW OFF THE CLAMP AND RELEASE THE SATELLITE ON THE PROTON ROCKET EIGHT STEEL HOOKS REACH UP FROM INSIDE THE ROCKET AND CLAMP ONTO THE SATELLITE'S BASE TO HOLD IT STEADY ONCE IN SPACE EXPLOSIVES SHAKE OFF THE HOOKS AND LET THE SATELLITE GO FREE HOW TO MAKE A MATCH FOR INMARSAT AND ITS PRIME SATELLITE CONTRACTOR MARTIN MARIETTA AERO SPACE THE FORMER DIVISION OF GENERAL ELECTRIC CO RECENTLY PURCHASED BY MARTIN MARIETTA THE SOLUTION IS AT SAABSCANIA AS THE SWEDISH CAR AND AEROSPACE COMPANY WILL HELP THE RUSSIANS DESIGN AN ADAPTOR ON THE SAME PRINCIPLE THAT MATES TWOPRONGED US ELECTRICAL PLUGS WITH TWO OR THREE PINNED EUROPEAN SOCKETS THE ADAPTOR WILL SIT BETWEEN SATELITE AND ROCKET WITH A WESTERNSTYLE CLAMP MECHANISM AT ITS TOP AND RUSSIANSTYLE HOOK SLOTS AT ITS BOTTOM TOUGH PROBLEM SIMPLE ANSWER 9304190120 930419 DESPITE CALM POLICE FRET OVER ARMED LOS ANGELENOS BY FREDERICK ROSE AND SARAH LUBMAN STAFF REPORTERS OF THE WALL STREET JOURNAL LOS ANGELES EVEN AS THIS CITY AVERTED THE WIDESPREAD RIOTING IT HAD DREADED POLICE FEAR A DEADLY NEW POTENTIAL FROM GUNS BOUGHT IN UNPRECEDENTED NUMBERS BY FRIGHTENED CITIZENS WE'RE WORRIED ABOUT NEIGHBORS SHOOTING NEIGHBORS POLICE CHIEF WILLIE WILLIAMS TOLD A CHURCH GATHERING LAST WEEK THE FLOOD OF PRIVATE WEAPONS IS HIS BIGGEST FEAR HE SAID HANDGUN SALES IN LOS ANGELES COUNTY JUMPED BY NEARLY 30 IN JANUARY OVER THE PRIOR YEAR THE LATEST FULL MONTH FOR WHICH STATISTICS ARE AVAILABLE PEOPLE IN THE GUN TRADE SAY SALES HAVE SOARED SINCE WEAPONS PURCHASES CAME INTO VOGUE LAST YEAR AFTER THE RIOTING THAT FOLLOWED THE ACQUITTALS OF FOUR WHITE POLICE OFFICERS IN THE STATE TRIAL OVER THE BEATING OF BLACK MOTORIST RODNEY KING TWO OF FOUR OFFICERS WERE FOUND GUILTY OVER THE WEEKEND OF FEDERAL CIVILRIGHTS VIOLATIONS FOR WEEKS HANDGUN BUYING SWELLED TO NEARLY DOUBLE YEAREARLIER LEVELS BEFORE STABILIZING NEAR YEAR'S END IN 1992 HANDGUNS SALES GREW 20 IN LOS ANGELES COUNTY LAWENFORCEMENT OFFICIALS AND GUN MERCHANTS SAY MANY NEW GUN OWNERS BARELY KNOW BREECH FROM MUZZLE THERE ARE PEOPLE BUYING FROM US WHO ARE TOTALLY UNFAMILIAR WITH WEAPONS SAYS BRUCE JOCHIM PROPRIETOR OF PACIFIC CARTRIDGE A GUN SHOP IN THE COASTAL COMMUNITY OF SANTA MONICA MR JOCHIM SAYS HE SHOWS ALL CUSTOMERS HOW TO LOAD AND UNLOAD THEN HAS THEM SIGN STATEMENTS ACKNOWLEDGING THE INSTRUCTION STATE LAW MANDATES ONLY THAT GUN STORES HAVE A COPY OF CALIFORNIA'S FIREARMS LAWS AVAILABLE NOR DO NEW OWNERS OFTEN UNDERSTAND THE RISKS OF GUN OWNERSHIP POLICE SAY THE REAL WORRY IS THAT YEARS FROM NOW KIDS WILL PULL A FORGOTTEN WEAPON FROM A DRAWER OR THAT A GUN THAT'S NOW IN THE HOUSE WILL BE USED TO SETTLE A DOMESTIC DISPUTE SAYS LT JOHN DUNKIN A LOS ANGELES POLICE DEPARTMENT SPOKESMAN NEARLY ONE MILLION HANDGUNS HAVE BEEN SOLD LEGALLY IN LOS ANGELES COUNTY IN THE LAST 10 YEARS ONE WEAPON FOR EVERY NINE RESIDENTS TENS OF THOUSANDS MORE ARE BELIEVED TO HAVE CHANGED HANDS ILLEGALLY SOME 4100 GUNS OF ALL KINDS WERE STOLEN DURING LAST YEAR'S RIOTS ALONE STATISTICS ON LEGAL HANDGUN SALES ARE KEPT BY THE STATE'S DEPARTMENT OF JUSTICE TO ENTHUSIASTS A GUN PURCHASE IS THE EXERCISE OF THE RIGHT OF CITIZENS TO BEAR ARMS FOR SPORT OR SELF DEFENSE BUT HOUSEHOLD FIREARMS ALL TOO OFTEN END UP IN THE HANDS OF CROOKS POLICE SAY SOME 70 OF GUNS SEIZED BY THE LAPD WERE AT FIRST PURCHASED LEGALLY THE SPREAD OF PRIVATE ARSENALS IS REACHING INTO MANY CORNERS ON THE WELLHEELED WEST SIDE GUN SALES AND TARGET PRACTICE HAVE PICKED UP SHARPLY AT MR JOCHIM'S GUN SHOP A TRIO OF WELLDRESSED BUSINESSMEN PERUSE A SHOTGUN DISPLAY AS THE OWNER ESTIMATES THAT SALES HAVE JUMPED ABOUT 300 IN THE PAST MONTH EVER SINCE LAST APRIL WE'VE HAD A LOT OF EXLIBERALS WHO SUDDENLY DISCOVERED THEY NEED A GUN SAYS MR JOCHIM HE RECOMMENDS SHOTGUNS FOR HOME DEFENSE BECAUSE ACCURATE AIM ISN'T AS IMPORTANT AS WITH HANDGUNS AND SHOTS ARE LESS LIKELY TO PIERCE A NEIGHBOR'S WALL AT THE BUSTLING BEVERLY HILLS GUN CLUB A STEADY STREAM OF CUSTOMERS ARE BUZZING FOR ENTRY TO THE INDOOR SHOOTING RANGE BUSINESS HAS EXPLODED IN THE LAST SIX MONTHS SAYS MANAGER MARK GRAY MEMBERSHIP HAS JUMPED BY 1000 IN THE PAST YEAR TO 5000 CUSTOMERS PAY 195 A YEAR FOR UNLIMITED RANGE USE MORE COUPLES AND EVEN FAMILIES OFTEN NOVICE WEAPONHANDLERS ARE COMING IN FOR PRACTICE WE GET PEOPLE WALKING IN OFF THE STREET WHO'VE NEVER EVEN SHOT A GUN BEFORE WHO WANT TO BE TRAINED IMMEDIATELY MR GRAY SAYS DEMAND AT B & B SALES A HIGHVOLUME RETAILER WITH OUTLETS IN THE LOS ANGELES'S SAN FERNANDO VALLEY AND IN ORANGE COUNTY HAS BEEN BRISK SAYS BARR KAHN ONE OF THE OWNERS LINES OF GUN BUYERS HAVE AT TIMES STRETCHED OUT THE DOOR AND CUSTOMERS PICK UP AMMUNITION BY THE CASE INSTEAD OF BY THE BOX HE SAYS HE ADDS THAT BUYERS WHO TAKE DELICATESSENSTYLE NUMBERS FOR SERVICE HAD TO WAIT AS LONG AS TWO HOURS FOR A SALESMAN LAST WEEK 9304190119 930419 LAW APPEALS COURT RULES FOR STATES IN SUPERFUND CASE BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL STATES CAN ENFORCE THEIR HAZARDOUSWASTE LAWS ON FEDERAL PROPERTY EVEN IF THE PROPERTY IS LISTED AS A FEDERAL SUPERFUND SITE AN APPEALS COURT RULED THE RULING THE FIRST BY A US APPELLATE COURT TO ADDRESS THE ISSUE IS A BLOW TO FEDERAL AGENCIES ACCUSED OF BEING LAX IN CLEANING UP MINING AND MILITARYWASTE SITES THEY OVERSEE REFLECTING NATIONWIDE INTEREST IN THE ISSUE 22 STATES FILED BRIEFS IN THE CASE SUPPORTING COLORADO'S EFFORT TO CLEAN UP THE POLLUTED ROCKY MOUNTAIN ARSENAL NORTHEAST OF DENVER THE 10TH US CIRCUIT COURT OF APPEALS IN DENVER AGREED WITH COLORADO ATTORNEY GENERAL GALE NORTON THAT CONGRESS DIDN'T INTEND FOR FEDERAL HAZARDOUSWASTE LAWS TO PRECLUDE STATE ENFORCEMENT ACTIONS AT SUPERFUND SITES THEY ALSO AGREED WITH MS NORTON THAT LEAVING TOTAL CONTROL OVER THE CLEANUP OF FEDERAL SITES TO THE VERY AGENCIES THAT POLLUTED THEM AMOUNTED TO A CONFLICT OF INTEREST THE DECISION REVERSES A FEDERAL DISTRICT COURT RULING THAT HAD BLOCKED COLORADO FROM COLLECTING FINES AND DICTATING CLEANUP PROCEDURES AT THE ARSENAL THE RESULT OF THE LOWER COURT'S RULING WAS ESPECIALLY TROUBLING TO MANY STATES BECAUSE THE FEDERAL GOVERNMENT IS A MAJOR POLLUTER AND HAS BEEN NOTORIOUSLY RECALCITRANT IN CLEANING UP HAZARDOUS WASTE AT ITS FACILITIES MS NORTON SAID UNDER THE APPELLATE PANEL'S DECISION STATES ARE NO LONGER RELEGATED TO THE SIDELINES WHILE FEDERAL FACILITIES POLICE THEMSELVES IN CLEANING UP THEIR OWN POLLUTION SHE ADDED THE 10TH CIRCUIT HAS JURISDICTION OVER COLORADO NEW MEXICO KANSAS OKLAHOMA UTAH AND WYOMING BUT AS THE HIGHEST COURT RULING YET ON THE ISSUE THE DECISION IS LIKELY TO BE CITED BY OTHER STATES AS WELL IN DISPUTES OVER SUPERFUND SITES THE RULING IS PARTICULARLY IMPORTANT IN THE 10TH CIRCUIT BECAUSE ITS STATES ARE SPRINKLED WITH HUNDREDS OF FEDERALLY CONTROLLED MINING AND MILITARY WASTE SITES COLORADO DEPUTY ATTORNEY GENERAL PATRICIA BANGER SAID THAT MANY OF THE STATES THAT FILED BRIEFS SUPPORTING COLORADO IN THE CASE ALSO HAVE HAD JURISDICTIONAL PROBLEMS OVER SUPERFUND SITES THE CASE AROSE WHEN COLORADO'S DEPARTMENT OF HEALTH WHICH HAD US ENVIRONMENTAL PROTECTION AGENCY AUTHORITY TO ENFORCE HAZARDOUSWASTE LAWS WITHIN THE STATE TRIED TO LEVY PENALTIES AND REGULATE CLEANUP AT THE ROCKY MOUNTAIN ARSENAL THE COLORADO AGENCY ALLEGED IN AN ADMINISTRATIVE ACTION THAT THE FEDERAL GOVERNMENT'S PLAN FOR CLEANING UP THE SITE WAS INADEQUATE AND DIDN'T MEET STATE OR EPA STANDARDS THE ARSENAL HAD BEEN USED BY THE US ARMY AND SOME PRIVATE COMPANIES TO MAKE CHEMICAL WEAPONS AND PESTICIDES FOR 40 YEARS AND WAS LISTED BY THE EPA AS A SUPERFUND HAZARDOUSWASTE SITE THE FEDERAL GOVERNMENT ARGUED THAT THE COMPREHENSIVE ENVIRONMENTAL RESPONSE COMPENSATION AND LIABILITY ACT OF 1980 THE FEDERAL SUPERFUND LAW ALSO KNOWN AS CERCLA PROHIBITED COLORADO FROM CHALLENGING CERCLA CLEANUP ACTIVITIES AT SUPERFUND SITES BUT THE APPELLATE JUDGES SAID IN THEIR DECISION EARLIER THIS MONTH THAT CONGRESS CLEARLY EXPRESSED ITS INTENT THAT CERCLA SHOULD WORK IN CONJUNCTION WITH OTHER FEDERAL AND STATE HAZARDOUSWASTE LAWS IN ORDER TO SOLVE THIS COUNTRY'S HAZARDOUSWASTE CLEANUP PROBLEM US VS COLORADO 10TH US CIRCUIT COURT OF APPEALS 911360 AND DECISION WILL BE PUBLISHED 9304190118 930419 MARKETING CHINA COAST RESTAURANTS MAY MUSHROOM BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL YOU DON'T NEED A FORTUNE COOKIE TO KNOW THAT GENERAL MILLS INC HAS A LOT OF EGG ROLLS IN ITS IMMEDIATE FUTURE THE US HAS MORE THAN 28000 CHINESE RESTAURANTS BUT THERE IS NO NATIONWIDE CHAIN NOW GENERAL MILLS ALREADY THE COUNTRY'S LARGEST OPERATOR OF CASUALDINING OUTLETS IS OUT TO CHANGE THAT FOR THE PAST THREE YEARS THE COMPANY HAS BEEN TESTING A CHINESE RESTAURANT CHAIN CONCEPT CALLED CHINA COAST IN THE ORLANDO FLA AREA TODAY IT TAKES THAT IDEA TO INDIANAPOLIS HOW MIDWESTERNERS RESPOND TO CHINA COAST'S STIRFRY AND DIM SUM SHOULD TELL A LOT ABOUT THE VENTURE'S FUTURE AFTER A FURTHER TEST IN THE DALLASFORT WORTH AREA THIS SUMMER EXECUTIVES HOPE TO DECIDE WHETHER CHINA COAST IS THE CHAIN THAT HAS ELUDED OTHERS IT'S NOT THAT INDIANAPOLIS POPULATION 741952 NEEDS ANOTHER CHINESE RESTAURANT THE CITY'S YELLOW PAGES LIST 23 AND KENT LI OWNER OF THE SUBURBAN MANDARIN HOUSE SAYS BUSINESS IS NOT VERY GOOD THESE DAYS RONALD PAUL PRESIDENT OF THE CHICAGOBASED RESTAURANTCONSULTING FIRM TECHNOMIC INC CALLS CHINA COAST'S CHANCES A LONG SHOT IF ANYBODY CAN DO IT THEY'RE LIKELY TO BECAUSE THEY SOLVED SOME OF THE SAME PROBLEMS WITH OLIVE GARDEN BUT THE HURDLES ARE HIGH OLIVE GARDEN IS GENERAL MILLS' SUCCESSFUL ITALIAN RESTAURANT CHAIN ONE HURDLE IS THAT PEOPLE'S TASTES VARY WHAT'S A GOOD SWEETANDSOUR DISH IN ONE REGION MAY BE UNACCEPTABLE IN ANOTHER FINDING SKILLED COOKS CUSTOMERS GENERALLY ASSUME THEY WILL BE ASIANS COULD ALSO BE A PROBLEM FINALLY THE MOMANDPOP HERITAGE OF US ORIENTAL RESTAURANTS HAS KEPT OVERHEAD DOWN AND PRICES LOW WHICH IS FORMIDABLE COMPETITION FOR A CORPORATERUN CHAIN WHOSE PRICES MUST COVER HIGHER SALARIES AND A MULTITUDE OF BENEFITS THE PEOPLE FROM BETTY CROCKER'S KITCHENS KNOW IT WON'T BE A CAKE WOK INDEED THEY STUMBLED WITH THEIR FIRST CHINESE ATTEMPT A RESTAURANT CALLED LEEANN CHIN NAMED FOR A FAMED CHEF IN MINNEAPOLIS IT DID WELL THERE BUT WHEN THE RESTAURANT OPENED A UNIT IN CHICAGO PEOPLE ASKED WHO'S LEEANN CHIN GENERAL MILLS ALSO SCRAPPED ATTEMPTS AT MEXICAN AND HEALTHFOOD RESTAURANTS STEAKHOUSES PIE SHOPS AND FERN BARS BUT RESTAURANTS PROVIDE ABOUT A THIRD OF GENERAL MILLS' 78 BILLION IN ANNUAL REVENUES AND EACH OF ITS 587 RED LOBSTER SEAFOOD AND 365 OLIVE GARDEN RESTAURANTS IN THE US GROSSES MORE THAN 27 MILLION ANNUALLY ON AVERAGE COMPANY EXECUTIVES BELIEVE EACH CHINA COAST OUTLET COULD DO AS WELL CHINESE FOOD IS MORE POPULAR THAN ITALIAN SAYS RONALD N MAGRUDER PRESIDENT OF OLIVE GARDEN NORTH AMERICA WHO IS ADVISING CHINA COAST'S MANAGEMENT TEAM THROUGH THE EARLY GOING WE HAVE A CHANCE TO BRING SOME EFFICIENCIES TO THIS BUSINESS HE ADDS CONTENDING THAT THE COMPANY'S EXPERIENCE DEVELOPING BIG FISH AND PASTA CHAINS WILL SERVE IT WELL THE DECOR AND AMBIENCE AND SERVICE WE'RE BRINGING TO THIS GIVES US A REAL OPPORTUNITY GENERAL MILLS ALSO SAVORS THE TAKEOUT POTENTIAL OF A THRIVING CHINESE FOOD OPERATION INDEED THE DELUGE OF TAKEOUT ORDERS AT ITS THREE ORLANDO RESTAURANTS MAY RESULT IN AN ANNEX AND SEPARATE PARKING LOT FOR THOSE CUSTOMERS AT FUTURE OUTLETS SAYS CHINA COAST PRESIDENT JON FINLEY A VETERAN OF THE COMPANY'S PACKAGEDFOODS SIDE HIS LAST ASSIGNMENT WAS RUNNING ITS YOPLAIT YOGURT BUSINESS MR FINLEY IS A NEWCOMER TO RESTAURANTS BUT LEARNING FAST TO MASTER HIS ASSIGNMENT HE WAITED TABLES ACTED AS HOST AND EVEN SPENT TIME IN THE KITCHEN MAKING EGG ROLLS HE RECENTLY SHOWED OFF THE NEWEST OF THE THREE ORLANDO PROTOTYPES TO A VISITOR POINTING OUT THE TOUCHACTIVATED COMPUTER SCREENS WHERE ORDERS ARE ENTERED THE SPECIAL SAUCE DISPENSERS AND THE WASHTUBSIZED WOKS IN THE KITCHEN AND THE COOLIE HATS THAT SERVE AS LAMP SHADES OVER LACQUERED TABLES OUTSIDE THE 260SEAT BUILDING WITH ITS TURQUOISE PAGODA ROOF BAMBOO RUSTLES IN THE BREEZE MR FINLEY SAYS HIS STAFF ALREADY HAS IDENTIFIED HARDIER BAMBOO THAT COULD GROW IN COLD WEATHER SO THAT A CHINA COAST IN DULUTH SAY WOULD HAVE THE SAME LOOK WHILE THE RESTAURANTS WOULD HAVE A COOKIECUTTER APPEARANCE THE MENUS WILL BE SOMEWHAT CUSTOMIZED TO LOCAL TASTES HE SAYS BEFORE ENTERING A MARKET MR FINLEY AND HIS CREW SAMPLE FOOD AT POTENTIAL COMPETITOR RESTAURANTS TO MEASURE THE LOCAL SPICE LEVEL THEY ALSO LOOK FOR POTENTIAL EMPLOYEES EACH RESTAURANT WOULD HAVE ABOUT 100 AND IDEALLY A MAJORITY WOULD BE ASIANS OFFICIALS SAY WE WERE PLEASANTLY SURPRISED MR FINLEY SAYS WE FOUND A LOT OF KIDS WITH COLLEGE EDUCATIONS AMONG JOB APPLICANTS AT THE FLORIDA OUTLETS THEY SEE THE CHAIN AS AN OPPORTUNITY TO GET INTO MANAGEMENT AND REAP BENEFITS AND OTHER PERKS FROM A BIG COMPANY CHINA COAST'S MENU IS EXTENSIVE THE SERVINGS LARGE EACH DISH IS MADE TO ORDER CUSTOMERS CAN SPECIFY CERTAIN VEGETABLES AND SPICING DINNER ENTREES BEGIN AT 495 FOR VEGETABLE FRIED RICE OR EGG FOO YONG AND RANGE UP TO 1295 FOR HONG KONG STEAK IN PEPPERCORN SAUCE AND THREE CROWNS IN A BIRD'S NEST SHRIMP SCALLOPS AND CHICKEN IN A CRISPY POTATO NEST FOR 1395 DESSERTS INCLUDE MANDARIN ORANGE CHEESECAKE ORIENTAL WEDDING CAKE AND THE SIXLAYER GREAT WALL OF CHOCOLATE THE LUNCHEON BUFFET INCLUDES SOUPS APPETIZERS FIVE ENTREES SALAD FRUIT RICE AND TEA AT 525 FOR ADULTS AND 295 FOR CHILDREN A LIMITED KID'S MENU FEATURES FUNSOUNDING FOODS AT PRICES RANGING FROM 199 TO 395 BARBECUED PORK RIBS FOR EXAMPLE ARE DRAGON BONES BUT FOR THE FINICKY THERE IS ALSO A HOT DOG FROM THE BAR BLOODY MARYS COME WITH A STICK OF BOK CHOY INSTEAD OF CELERY THERE HAVE BEEN 10 MENUS AND TWICE THAT MANY VARIATIONS DURING THE WOULDBE CHAIN'S DEVELOPMENT MR MAGRUDER SAYS IT'S CHANGED A LOT THE FOOD IS INTENDED TO PLEASE WHAT HE CALLS A MIDDLE NICHE IN THE AMERICAN PALATE WHILE GENERAL MILLS PURSUES THE SITDOWN TRADE OTHER RESTAURATEURS ARE GOING AFTER THOSE ON THE RUN SEVERAL CHINESE FASTFOOD CHAINS ARE EXPANDING RAPIDLY THE NATIONAL RESTAURANT ASSOCIATION REPORTS THE LARGEST TORONTOBASED MANCHU WOK HAS 240 UNITS IN THE US AND CANADA MOST ARE IN FOOD COURTS BUT ONE IS IN THE ATLANTA AIRPORT AND ANOTHER ON THE UNIVERSITY OF SOUTH CAROLINA CAMPUS PANDA EXPRESS BASED IN SOUTH PASADENA CALIF HAS 87 LOCATIONS IN 14 STATES IN MICHIGAN SOME FORMER DOMINO'S PIZZA EXECUTIVES HAVE STARTED A DELIVERY OPERATION CALLED HOLEE CHOW WHILE HE EXPECTS COMPETITION MR MAGRUDER IS OPTIMISTIC THAT GENERAL MILLS EVENTUALLY WILL OWN SOME OF THE 65 BILLION IN US ORIENTAL RESTAURANT SALES PERSISTENCE PAYS OFF HIS FORTUNE READS MR MAGRUDER RECALLS STANDING OUTSIDE A NEW OLIVE GARDEN IN PHOENIX HOLDING A SIGN THAT SAID COME ON IN TODAY HE SAYS THAT STORE IS THE BEST PERFORMER IN THE CHAIN 9304190117 930419 CLASSACTION STATUS SOUGHT FOR LAWSUIT OVER PARTNERSHIPS TEXAS MOVE MAY BE BID TO FORCE PRUDENTIAL SECURITIES INC TO RAISE SETTLEMENT OFFER BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE STAKES MAY SOON RISE IN A HIGHPROFILE CASE AGAINST PRUDENTIAL SECURITIES INC OVER ENERGY PARTNERSHIPS THAT SOURED IN AN AMENDED LAWSUIT FILED FRIDAY IN A TEXAS STATE COURT ABOUT 2000 ENERGYPARTNERSHIP INVESTORS WITH CLAIMS AGAINST PRUDENTIAL SECURITIES MADE AN UNUSUAL REQUEST CERTIFICATION FOR A CLASS ACTION ON BEHALF OF 130000 INVESTORS WITH CLAIMS ALREADY PENDING AGAINST THE BIG BROKERAGE COMPANY IN A FEDERAL COURT IN NEW ORLEANS THE TEXAS ACTION APPEARS TO BE A BID TO PRESSURE PRUDENTIAL SECURITIES TO OFFER MORE MONEY TO INVESTORS TO SETTLE THE CASE SECURITIES LAWYERS SAY THE SUIT WHICH ALLEGES THAT PRUDENTIAL MISLED INVESTORS INTO BUYING THE ENERGY PARTNERSHIPS ASKS FOR TRIPLE DAMAGES UNDER TEXAS'S DECEPTIVETRADE PRACTICES ACT AND TEXAS STATE COURT JURIES ARE RENOWNED FOR ISSUING BIGMONEY VERDICTS AGAINST DEEPPOCKETED CORPORATIONS THE PRICE OF PLAYING POKER JUST WENT UP SAYS GEORGE M FLEMING OF FLEMING HOVENKAMP & GRAYSON A HOUSTON LAW FIRM WHICH FILED THE TEXAS CASE WE FEEL RIGHT COMFORTABLE IN THE COURTS OF THIS STATE AND WHAT A TEXAS JURY WOULD DO MR FLEMING ADDS A SPOKESMAN FOR PRUDENTIAL SECURITIES A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA SAID THE COMPANY HADN'T YET SEEN THE TEXAS FILING AND COULDN'T COMMENT THE 130000 INVESTORS IN THE NEW ORLEANS CASE HAVE SUED PRUDENTIAL SECURITIES SAYING THEY LOST ABOUT HALF THE 14 BILLION THEY PUT INTO ENERGY PARTNERSHIPS MARKETED IN THE 1980S BY THE BROKERAGE FIRM LATE LAST YEAR PRUDENTIAL SECURITIES OFFERED INVESTORS 100 MILLION IN A SETTLEMENT PROPOSAL BUT THE FEDERAL JUDGE IN THE CASE SAID IN FEBRUARY THAT HE HAD SERIOUS RESERVATIONS ABOUT THE FAIRNESS OF THE SETTLEMENT NOW PRUDENTIAL PLANS TO WITHDRAW THE PROPOSAL PEOPLE FAMILIAR WITH THE MATTER SAY AND IS TRYING TO SELL THE PARTNERSHIPS TO RAISE MORE CASH MEANTIME THE NEW ORLEANS CASE EFFECTIVELY HAS STALLED IN COURT PAPERS FILED IN BRAZORIA COUNTY TEXAS MR FLEMING ARGUED THAT THE CASE OUGHT TO BE CERTIFIED AS A CLASS ACTION IN THE TEXAS COURT BECAUSE THE MAJORITY OF ASSETS OF THE 35 ENERGY PARTNERSHIPS MARKETED BY PRUDENTIAL WERE BASED IN TEXAS AND MANY OF THE 130000 INVESTORS IN THE CASE LIVE IN TEXAS MR FLEMING SAYS BUT IT'S BY NO MEANS ASSURED THAT THE TEXAS COURT WILL GRANT THE UNUSUAL CERTIFICATION REQUEST SECURITIES LAWYERS SAY A HEARING IS EXPECTED ON THE MATTER BY MAY ACCORDING TO LAWYERS IN THE CASE 9304190116 930419 FCC DEFERS MAKING PHONES HEARINGAID COMPATIBLE WASHINGTON THE FEDERAL COMMUNICATIONS COMMISSION DELAYED ENFORCING RULES REQUIRING COMPANIES AND OTHER ORGANIZATIONS TO MAKE THEIR TELEPHONES HEARINGAID COMPATIBLE BY MAY 1 THE RULES WERE PUT ON HOLD SO THE AGENCY CAN STUDY THE MATTER FURTHER IN RECENT MONTHS THE FCC HAS RECEIVED NUMEROUS COMPLAINTS ABOUT THE COST ESTIMATED AT AS MUCH AS 45 A TELEPHONE OF MODIFYING PHONE SYSTEMS THE HEARINGAID RULES ADOPTED LAST YEAR REQUIRE COMPANIES HOTELS AND MOTELS HOSPITALS RESIDENTIAL HEALTH CARE FACILITIES CONVALESCENT HOMES AND PRISONS TO INSTALL PHONES THAT DON'T CAUSE ELECTRONIC FEEDBACK WHEN PEOPLE WEARING HEARING AIDS PUT THEIR EARS TO THE RECEIVER COMPANIES AND OTHER ORGANIZATIONS THAT EMPLOY 20 OR MORE PEOPLE ORIGINALLY WERE REQUIRED TO COMPLY BY MAY 1 WHILE THOSE WITH FEWER THAN 20 EMPLOYEES ARE REQUIRED TO UPGRADE THEIR PHONE SYSTEMS BY MAY 1 1994 PHONES IN MANY WORKPLACES ALREADY ARE HEARINGAID COMPATIBLE THE NORTH AMERICAN TELECOMMUNICATIONS ASSOCIATION WHICH REPRESENTS MANUFACTURERS OF BUSINESS AND PUBLIC PHONE SYSTEMS APPLAUDED THE DELAY BUT NOTED THAT THE FCC HASN'T SCRAPPED ITS RULES THOSE WHO HAVE ALREADY RETROFITTED MAY BE JUST ONE STEP AHEAD OF THE GAME SAID ED SPIEVACK NATA PRESIDENT 9304190115 930419 ECONOMY INDUSTRY OUTPUT WAS STAGNANT DURING MARCH SLOWDOWN WHICH REFLECTED EAST COAST SNOWSTORM FOLLOWED STRONG RISES BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON INDUSTRIALPRODUCTION DATA FOR MARCH RAISED FURTHER QUESTIONS ABOUT THE STRENGTH OF THE RECOVERY OUTPUT AT THE NATION'S FACTORIES MINES AND UTILITIES WAS STAGNANT IN MARCH THE FEDERAL RESERVE SAID AFTER HAVING SHOWN FAIRLY STRONG GAINS SINCE OCTOBER ANALYSTS SAID THE SLOWDOWN IN INDUSTRIAL PRODUCTION REFLECTS THE SEVERE SNOWSTORM THAT HIT THE EAST COAST LAST MONTH THE FEDERAL RESERVE SAID THE INDUSTRIES MOST AFFECTED BY THE STORM WERE TEXTILES STEEL FURNITURE TOBACCO AND COAL MINING THOUGH THE AGENCY HAS NO EXACT ESTIMATES ON THE STORM'S IMPACT INDUSTRY ALSO OPERATED AT ONLY 799 OF CAPACITY IN MARCH DOWN FROM 801 IN FEBRUARY ALL OF THE SLOWDOWN CAN'T BE PEGGED TO THE WEATHER HOWEVER SINCE SHOWING SURPRISING STRENGTH IN THE FOURTH QUARTER THE ECONOMIC RECOVERY HAS BECOME SLUGGISH BUT INDUSTRIAL PRODUCTION HAS BEEN FAIRLY IMMUNE POSTING STRONG GAINS AS OTHER SECTORS EASED THEIR PACE CONSUMERS HAVE CUT BACK THEIR SPENDING PACE SINCE THE BIG JUMPS AT THE END OF LAST YEAR AND THEIR CONFIDENCE HAS SLIPPED IN ITS EARLY READING ON CONSUMER SENTIMENT IN APRIL THE UNIVERSITY OF MICHIGAN'S INDEX DROPPED TO 840 FROM 859 IN MARCH ACCORDING TO MARKET PARTICIPANTS WHO HAVE SEEN THE REPORT ALTHOUGH INDUSTRIAL PRODUCTION IS STILL ON SOLID FOOTING THE FLAT MARCH PERFORMANCE SUGGESTS THE MANUFACTURING SECTOR ALSO HAS LOST A BIT OF MOMENTUM SAYS PRISCILLA LUCE TRUMBULL DIRECTOR OF INDUSTRIAL ANALYSIS FOR THE WEFA GROUP IN SUBURBAN PHILADELPHIA INCREASES IN INDUSTRIAL PRODUCTION HAVE BEEN VERY CONSISTENT SO I WOULDN'T BE SURPRISED IF IT HAS SLOWED DOWN A BIT LIKE OTHER SECTORS OF THE ECONOMY BUT IT'S CERTAINLY NOT IN TROUBLE INDEED THE FEBRUARY INCREASE IN INDUSTRIAL PRODUCTION WAS RAISED TO 06 FROM 04 THE ONLY AREAS TO SHOW SIZABLE INCREASES IN OUTPUT DURING MARCH WERE BUSINESS EQUIPMENT WHICH ROSE 04 AND UTILITIES WHICH JUMPED 08 ALL OTHER CATEGORIES WERE VIRTUALLY FLAT OR POSTED DECLINES ANALYSTS POINTED OUT THAT MANY BUSINESSEQUIPMENT MANUFACTURERS ARE IN MIDWEST AREAS THAT WEREN'T AFFECTED BY THE WINTER STORM THEY ALSO SAID BUSINESSEQUIPMENT SPENDING IS LIKELY TO REMAIN STRONG THROUGHOUT THE YEAR BECAUSE OF THE CORPORATE FOCUS ON PRODUCTIVITY ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE IS A SUMMARY OF THE FEDERAL RESERVE BOARD'S REPORT ON INDUSTRIAL PRODUCTION IN MARCH THE FIGURES ARE SEASONALLY ADJUSTED THE INDUSTRIAL PRODUCTION INDEX FOR MARCH STOOD AT 112 OF THE 1987 AVERAGE 9304190114 930419 THE OUTLOOK CAPITAL SPENDING MAY SPUR RECOVERY BY LINDLEY H CLARK JR NEW YORK WHILE NEW COMMERCIAL AND FACTORY CONSTRUCTION IS LIKELY TO REMAIN WEAK COMPANIES WILL CONTINUE TO SPEND HEAVILY ON MACHINERY AND EQUIPMENT SPENDING INCREASED SHARPLY IN THE FOURTH QUARTER OF LAST YEAR HELPING TO ACCOUNT FOR THE STRONG RISE IN GROSS DOMESTIC PRODUCT SMITH BARNEY HARRIS UPHAM & CO ESTIMATES BUSINESS FIXED INVESTMENT IN INFLATIONADJUSTED TERMS WILL SOAR 93 THIS YEAR A GAIN THAT THE FIRM THINKS WILL HELP SPUR THE ECONOMY TO A MODERATE RISE THE CONSENSUS FORECAST IS THAT INFLATIONADJUSTED GDP THE NATION'S OUTPUT OF GOODS AND SERVICES WILL GROW 33 THIS YEAR ASIDE FROM CAPITAL OUTLAYS THE FACTORS EXPECTED TO KEEP THE ECONOMY EDGING UPWARD ARE RESIDENTIAL CONSTRUCTION INVENTORY INCREASES AND TO A MODEST EXTENT STATE AND LOCAL GOVERNMENT SPENDING THE PROPOSED TEMPORARY INVESTMENT TAX CREDIT FOR LARGE COMPANIES AND THE PERMANENT ONE FOR SMALLER COMPANIES ARE UNDER ATTACK IN CONGRESS AS TAX LOOPHOLES THAT EVEN INDUSTRY DOESN'T WANT JERRY JASINOWSKI PRESIDENT OF THE NATIONAL ASSOCIATION OF MANUFACTURERS SAYS THE CREDITS WOULD MERELY MOVE SPENDING FORWARD SPENDING IN ANY CASE IS RISING WITHOUT THEM IN THE LATEST DUN & BRADSTREET SURVEY OF 5000 MANUFACTURING FIRMS 44 OF ALL COMPANIES FORESEE INCREASES IN OUTLAYS DURING 1993 ANOTHER 17 EXPECT TO HAVE LOWER EXPENDITURES WHILE THE REMAINING 39 SEE OUTLAYS REMAINING CONSTANT AT 1992 LEVELS THE BIGGEST INCREASES IN PLANT AND EQUIPMENT SPENDING THIS YEAR ARE EXPECTED TO BE FOR COMPUTERS INDUSTRIAL EQUIPMENT TRUCKS AND HIGHWAY CONSTRUCTION EQUIPMENT COMPUTER PRICES HAVE BEEN DECLINING LATELY A TREND THAT HAS HELPED TO HOLD DOWN COMPANIES' CAPITAL OUTLAYS A MAJOR POSITIVE FACTOR FOR BUSINESS INVESTMENT IS INCREASED CORPORATE PROFITS PRETAX OPERATING PROFITS SOARED AT AN ANNUAL RATE OF 77 IN LAST YEAR'S FOURTH QUARTER WELL ABOVE ANALYSTS' EXPECTATIONS PROFITS ARE LIKELY TO CONTINUE TO EXPAND THROUGH THIS YEAR BUSINESSMEN STILL ARE SHARPLY RESTRAINING COSTS THIS HASN'T BEEN GREAT NEWS FOR JOBS BUT IT KEEPS PUSHING UP LABOR PRODUCTIVITY A PLUS FOR PROFITS PROFIT MARGINS ALSO ARE RISING IN LARGE PART BECAUSE OF IMPROVING PRODUCTIVITY PRESIDENT CLINTON'S DEFICITCUTTING PROPOSALS ASSUMING THEY ARE ENACTED WILL HAVE MODEST EFFECTS ON THE ECONOMY THIS YEAR BUT THEY ARE LIKELY TO HIT HARDER IN 1994 THE CORPORATE AND PERSONAL TAX INCREASES ESPECIALLY MAY SLOW THE BUSINESS EXPANSION ALTHOUGH THE CORPORATE LEVY MAY BE REDUCED IF THE INVESTMENT TAX CREDIT IS CUT OR ELIMINATED THE FEDERAL RESERVE RECENTLY HAS BEEN WORRYING ABOUT INFLATIONARY PRESSURES BUT THE TAX INCREASES PRESUMABLY WILL ENCOURAGE THE FED TO EASE MONETARY POLICY UNLESS THE FED BECOMES DISTURBED BY THE INFLATION OUTLOOK IT IS LIKELY TO TRY TO KEEP INTEREST RATES AROUND CURRENT LEVELS THINGS MORE OR LESS WORK TOGETHER RELATIVELY LOW INTEREST RATES HELP FINANCE CAPITAL PROJECTS TENDING TO INCREASE EFFICIENCY AND TO HOLD DOWN COSTS AND INFLATION BUSINESSMEN AREN'T SHAKEN BY DUN & BRADSTREET'S REPORT THAT BUSINESS FAILURES ROSE 10 TO A NEW HIGH IN 1992 THE FIRM FINDS SOME GOOD NEWS IN THE FACT THAT THE RATE OF INCREASE IN FAILURES PEAKED DURING THE YEAR BUT EVEN BETTER NEWS PERHAPS IS THAT BUSINESSMEN SEEM TO FEEL THAT THE WORST IS OVER ACCORDING TO ANOTHER DUN & BRADSTREET SURVEY OF 1000 MANUFACTURING FIRMS EXPECTATIONS FOR ONGOING GAINS RECENTLY HAVE REBOUNDED DESPITE A SLIGHT DECLINE IN JANUARY MANUFACTURERS HAVE CONSISTENTLY REPORTED A HIGHER LEVEL OF OPTIMISM OVER THE PAST THREE MONTHS MANUFACTURERS REMAIN RATHER CAUTIOUS BUT THEY REPORT THAT PRODUCTION LEVELS AND NEW ORDERS ARE RISING AND THEY EXPECT THOSE TRENDS TO CONTINUE ALL OF THE SURVEYS SHOW THE BASIC TREND OF CAPITAL SPENDING TO HIGHTECH EQUIPMENT FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN SUMMED THIS UP IN RECENT CONGRESSIONAL TESTIMONY THE PUSH TO ACQUIRE STATEOFTHEART TECHNOLOGY HAS ALSO BEEN PROVIDING A DISCERNIBLE THRUST TO CAPITAL SPENDING IN RECENT QUARTERS AND LIKELY WILL CONTINUE TO DO SO REAL OUTLAYS FOR OFFICE AND COMPUTING EQUIPMENT HAVE SOARED AS FIRMS CONTINUE THE TRANSITION TO THE MORE POWERFUL AND COSTEFFECTIVE MACHINES THAT ARE NOW AVAILABLE AND PURCHASES OF COMMUNICATIONS EQUIPMENT CONTINUED TO BE BOOSTED BY AMONG OTHER THINGS THE SHIFT TO FIBEROPTIC NETWORKS IT IS TOO EARLY TO BE CERTAIN JUST HOW ALL OF THIS WILL WORK OUT THERE IS NO INDICATION YET THE BUSINESS OPTIMISM WILL BE GREAT ENOUGH TO LEAD TO A MAJOR CONSTRUCTION SPREE EASING THE DEPRESSION IN COMMERCIAL REAL ESTATE BUSINESSMEN ARE HOPEFUL ABOUT PRESIDENT CLINTON'S ECONOMIC PROGRAM BUT ITS SUCCESS IS NOT GUARANTEED SO FAR CAPITAL SPENDING IS DOING WELL EVEN WITHOUT ANY BOOST FROM THE INVESTMENT TAX CREDIT AND MOST ECONOMISTS THINK THE GAINS WILL CONTINUE IN ANY CASE A SOLID UPTURN NOW IS UNDER WAY AND IN THESE UNCERTAIN TIMES UP IS SURELY BETTER THAN DOWN 9304190113 930419 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION DIAL CORP A SHELF REGISTRATION FOR 300 MILLION OF SENIOR NOTES VIA SALOMON BROTHERS INC EPIC HEALTHCARE GROUP INC AN OFFERING OF 160 MILLION OF SENIOR SUBORDINATED NOTES VIA MORGAN STANLEY & CO AND DONALDSON LUFKIN & JENRETTE SECURITIES CORP IMAGE BUSINESS SYSTEMS CORP AN INITIAL OFFERING OF 11 MILLION COMMON SHARES VIA PENNSYLVANIA MERCHANT GROUP LTD MARTIN MARIETTA CORP OFFERINGS TOTALING 700 MILLION INCLUDING 6 1/2 GUARANTEED NOTES 7 3/8 GUARANTEED DEBENTURES AND 7 3/4 GUARANTEED DEBENTURES VIA GOLDMAN SACHS & CO FIRST BOSTON CORP AND LEHMAN BROS NORTHWESTERN STEEL & WIRE CO AN INITIAL OFFERING OF SEVEN MILLION COMMON SHARES AND A CONCURRENT OFFERING OF 100 MILLION OF SENIOR NOTES VIA LEHMAN BROTHERS AND PAINEWEBBER CORP OWENSCORNING FIBERGLAS CORP AN OFFERING OF 45 MILLION COMMON SHARES PACIFIC PHYSICIAN SERVICES INC AN OFFERING OF 1752857 COMMON SHARES VIA FURMAN SELZ INC AND LEHMAN BROTHERS PILGRIM'S PRIDE CORP A SHELF OFFERING OF UP TO FIVE MILLION SHARES OF COMMON STOCK HELD BY ARCHERDANIELSMIDLAND CO USAIR GROUP INC AN OFFERING OF 10 MILLION COMMON SHARES VIA FIRST BOSTON CORP LEHMAN BROTHERS MORGAN STANLEY & CO AND SALOMON BROTHERS INC 9304190112 930419 TRADE CASE RULINGS AFFECT STEEL IMPORTS SHARP DROPS REPORTED WASHINGTON US STEEL IMPORTS PLUMMETED 454 IN FEBRUARY FROM JANUARY AND 32 FROM FEBRUARY 1992 AS PRELIMINARY RULINGS IN TRADE CASES BY AMERICAN PRODUCERS TOOK HOLD FEBRUARY IMPORTS TOTALED 838000 TONS COMPARED WITH 1535000 TONS IN JANUARY AND 1233000 TONS A YEAR EARLIER ACCORDING TO THE AMERICAN IRON AND STEEL INSTITUTE'S COMPILATION OF COMMERCE DEPARTMENT STATISTICS THE AISI SAID THE SHARP DROPS WERE DUE TO A LARGE DECREASE IN FLATROLLED STEEL IMPORTS WHICH ARE THE SUBJECT OF ANTIDUMPING AND COUNTERVAILING DUTY SUITS FILED BY U S STEELMAKERS THE COMMERCE DEPARTMENT'S FINAL RULING ON THOSE CASES IS DUE JUNE 21 IMPORT PENETRATION IN FEBRUARY WAS 114 OF THE MARKET COMPARED WITH 188 IN JANUARY AND 168 IN FEBRUARY 1992 STEEL EXPORTS AT 335000 TONS IN FEBRUARY WERE BELOW THE 354000 TONS EXPORTED IN JANUARY THEY WERE ALSO BELOW THE 362000 TONS IN FEBRUARY 1992 YEARTODATE IMPORTS WERE 2373000 TONS COMPARED WITH 2809000 TONS IN THE SAME 1992 PERIOD THE AMERICAN INSTITUTE FOR INTERNATIONAL STEEL A TRADE GROUP REPRESENTING IMPORTERS SAID THAT THE TRADE RULINGS HAVE CAUSED ABNORMAL TIGHTNESS IN AMERICAN STEEL MARKETS AND THAT US STEELMAKERS ARE HAVING TROUBLE FILLING STEEL ORDERS THE GROUP SAID THE TRADE CASES HAVE ALLOWED US PRODUCERS TO LIFT SHEET STEEL PRICES BY UP TO 20 A DEVELOPMENT THAT COULD HAVE A SERIOUS NEGATIVE IMPACT ON BOTH THE ECONOMIC RECOVERY AND INTERNATIONAL COMPETITIVENESS OF OUR LARGE DOMESTIC STEELCONSUMING SECTOR 9304190111 930416 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 9304190110 930419 SEQUA UNIT IS WORKING WITH FAA TO RESTORE OPERATIONS AT PLANT NEW YORK SEQUA CORP SAID ITS CHROMALLOY RESEARCH & TECHNOLOGY UNIT IS WORKING WITH THE FEDERAL AVIATION ADMINISTRATION TO RESTORE OPERATIONS AT ITS JETENGINE REPAIR FACILITY CHROMALLOY SUSPENDED WORK AT ITS ORANGEBURG NY PLANT AT THE REQUEST OF THE FAA WHICH IS INVESTIGATING POSSIBLE SAFETY PROBLEMS WITH ENGINE PARTS REPAIRED THERE SEQUA SAID IT COULDN'T ESTIMATE WHEN THE PLANT WILL RESUME NORMAL OPERATION EARLIER THIS MONTH CHROMALLOY SAID IT AGREED TO MAKE A 5 MILLION REMEDIAL PAYMENT TO THE FAA IN CONNECTION WITH THE INVESTIGATION SEQUA HAS ALSO AMENDED ITS REVOLVINGCREDIT AGREEMENT TO LIMIT BORROWINGS FOR 30 DAYS TO 125 MILLION AN AMOUNT IT SAID SHOULD MEET NEARTERM FINANCING NEEDS ACCORDING TO AN ANNUAL REPORT THE COMPANY PREVIOUSLY HAD ACCESS TO A 250 MILLION REVOLVINGCREDIT FACILITY THE COMPANY HAS ALSO DETERMINED THAT NO PLANES CURRENTLY FLYING CONTAIN PARTS REPAIRED AT THE PLANT THAT WOULD PRESENT A RISK TO SAFETY ON FRIDAY MOODY'S INVESTORS SERVICE INC LOWERED ITS RATING OF SEQUA'S SENIOR LONGTERM DEBT TO BA3 FROM BA1 CITING THE CLOSING OF THE CHROMALLOY FACILITY ABOUT 500 MILLION IN LONGTERM DEBT IS AFFECTED MOODY'S ALSO SAID THAT SEQUA'S DEBT RATING REMAINS UNDER REVIEW PENDING INVESTIGATIONS OF CHROMALLOY BY THE DEPARTMENT OF TRANSPORTATION AND FEDERAL BUREAU OF INVESTIGATION 9304190109 930419 ECONOMY BANKAMERICA MAY BE TRADE CENTER'S FIRST MAJOR NEW TENANT SINCE BLAST BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL BANKAMERICA CORP IS CLOSE TO AN AGREEMENT TO RELOCATE MOST OF ITS NEW YORK OPERATIONS TO NINE FLOORS OF THE WORLD TRADE CENTER WHICH WOULD MAKE IT THE FIRST MAJOR COMPANY TO MOVE TO THE TWIN TOWERS SINCE FEBRUARY'S TERRORIST ATTACK IF THE DEAL IS COMPLETED IT WOULD PROVIDE A HUGE BOOST TO THE EFFORTS BY THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY TO RESTORE TENANT CONFIDENCE IN THE BUILDING'S SECURITY AND EMERGENCY SYSTEMS WHICH WERE SEVERELY CRITICIZED AFTER THE BLAST ALTHOUGH MOST TENANTS HAVE ALREADY RETURNED A PORT AUTHORITY SPOKESMAN SAID THAT A HANDFUL OF SMALL COMPANIES HAVE INDICATED THAT THEY WILL BE LOOKING ELSEWHERE WHETHER THIS HAS ANYTHING TO DO WITH THE BLAST I DON'T KNOW HE SAID HE WAS UNSURE OF WHETHER THEIR LEASES WERE SET TO EXPIRE OR WHETHER THESE TENANTS WOULD ATTEMPT TO BREAK THEM THE PORT AUTHORITY HAS ATTRACTED ONE NEW TENANT THUS FAR CEYLION SHIPPING INC WHICH LEASED JUST 2100 SQUARE FEET OR ABOUT 5 OF ONE FLOOR SAN FRANCISCOBASED BANKAMERICA WHICH CURRENTLY OCCUPIES SPACE IN MORE THAN 10 MANHATTAN BUILDINGS HAS NEARLY COMPLETED NEGOTIATIONS TO RENT ABOUT 350000 SQUARE FEET IN ONE WORLD TRADE CENTER ACCORDING TO A PERSON FAMILIAR WITH THE NEGOTIATIONS ALTHOUGH IT IS STILL POSSIBLE THAT THE DEAL COULD UNRAVEL NEW YORK CITY OFFICIALS ARE CONFIDENT ENOUGH TO BE PLANNING AN ANNOUNCEMENT ON THURSDAY HE SAID WITH VACANCY RATES IN THE TWIN TOWERS AT ABOUT 12 AND A NUMBER OF LARGE LEASES SET TO EXPIRE OVER THE NEXT FEW YEARS IT IS CRITICAL FOR THE PORT AUTHORITY TO ERASE THE PERCEPTION THAT COMPETING OFFICE BUILDINGS ARE SAFER SINCE THE BLAST THE PORT AUTHORITY HAS INSTALLED BATTERYPOWERED LIGHTING IN THE STAIRWELLS AND A BETTER PUBLIC ADDRESS SYSTEM BRINGING THE BUILDING INTO COMPLIANCE WITH CITY FIRE CODES AND HAS TIGHTENED SECURITY SUBSTANTIALLY PORT AUTHORITY PROPERTIES ARE NOT REQUIRED BY LAW TO COMPLY WITH CITY FIRE CODES LAWYER JOHN WOOD A COMMERCIAL LEASING EXPERT WITH NEW YORK'S KAVANAGH PETERS POWELL & OSNATO SAID HE EXPECTS SOME TENANTS TO EVENTUALLY SUE THE PORT AUTHORITY FOR DAMAGES AFTER EVERYONE'S THROUGH ADJUSTING THE INSURANCE THERE WILL BE LITIGATION HE PREDICTED THERE WILL DEFINITELY BE MAJOR LOSSES THE INSURANCE WON'T COVER A SPOKESMAN FOR THE PORT AUTHORITY SAID IT WAS EXTREMELY DESIROUS OF CONSUMMATING THE BANKAMERICA DEAL BUT DECLINED TO INDICATE WHETHER A DEAL WAS IMMINENT WE WERE WORKING ON IT FOR A MONTH BEFORE THE BLAST AND WE'RE STILL IN DISCUSSIONS DAN COSTELLO HEAD OF CORPORATE REAL ESTATE FOR BANKAMERICA SAID IN A PREPARED STATEMENT THAT THE COMPANY HAS BEEN EVALUATING A NUMBER OF SITES IN MANHATTAN AND NEW JERSEY INCLUDING THE WORLD TRADE CENTER BUT HE DECLINED TO COMMENT FURTHER UNTIL NEGOTIATIONS WERE COMPLETE EDWARD S GORDON CO SAID TO BE REPRESENTING BANKAMERICA ALSO DECLINED COMMENT AS IT HAS DONE FOR A NUMBER OF MAJOR CORPORATIONS THAT HAVE THREATENED TO MOVE JOBS OUT OF THE CITY NEW YORK CITY HAS AGREED TO GRANT BANKAMERICA VARIOUS TAX INCENTIVES TO REMAIN SAID A PERSON FAMILIAR WITH THE DEAL A SPOKESWOMAN FOR THE CITY DECLINED COMMENT 9304190108 930419 WHO'S NEWS PPG NAMES BOSWELL HEAD OF EUROPE UNIT PITTSBURGH PPG INDUSTRIES INC WHOSE EUROPEAN OPERATIONS HAVE BEEN UNDER PRESSURE FROM THE CONTINENTWIDE RECESSION MOVED TO SHORE THEM UP BY MAKING THE PRESIDENCY OF PPG EUROPE A FULLTIME RESPONSIBILITY THE GLASS AND COATINGS MAKER SAID L BLAINE BOSWELL 53 YEARS OLD WHO HAD BEEN CORPORATE VICE PRESIDENT INTERNATIONAL AS WELL AS HEAD OF THE EUROPEAN UNIT WILL NOW BE FULL TIME IN THE EUROPEAN POSITION THE CORPORATE VICE PRESIDENCY IS BEING ELIMINATED A SPOKESMAN SAID PPG'S PROFITS HAVE BEEN SQUEEZED BY SLUMPING PERFORMANCE IN EUROPE ALTHOUGH THE COMPANY'S EUROPEAN EARNINGS PROVIDED 22 OF OPERATING INCOME IN 1990 THAT PROPORTION SLIPPED TO 14 IN 1992 ON 26 OF PPG'S 58 BILLION IN SALES THE COMPANY HAS SAID IT EXPECTS WEAK EUROPEAN SALES FOR ALL OF 1993 9304190107 930419 WORLD MARKETS RENEWED INFLATION FEARS SINK STOCKS IN LONDON WHILE TOKYO SHARE PRICES SLIDE ON PROFITTAKING A WALL STREET JOURNAL NEWS ROUNDUP SHARE PRICES ENDED LOWER ON MANY OF THE WORLD'S MAJOR STOCK MARKETS FRIDAY IN TOKYO PROFITTAKING HELPED TO PUSH DOWN STOCKS AND IN LONDON SHARES WERE HURT BY RENEWED INFLATION FEARS THE MARKET FINISHED MIXED IN FRANKFURT TOKYO STOCKS SKIDDED AS INVESTORS REELED IN RECENT WINNINGS AHEAD OF THE WEEKEND ALL MAJOR SECTORS ENDED LOWER THE NIKKEI 225STOCK INDEX LOST 37798 POINTS TO CLOSE AT 2029786 FOLLOWING A 14246POINT JUMP THURSDAY THE TREND CONTINUED EARLY MONDAY WITH THE NIKKEI FALLING 36663 POINTS TO 1993123 A FIRM YEN WAS AMONG THE FACTORS URGING CAUTION AHEAD OF A SUMMIT LATER IN THE DAY BETWEEN JAPANESE PRIME MINISTER KIICHI MIYAZAWA AND US PRESIDENT BILL CLINTON IN WASHINGTON TRADE ISSUES ARE LIKELY TO DOMINATE THE DISCUSSIONS BETWEEN THE TWO LEADERS SPOTLIGHTING THE CURRENCY SITUATION PARTICIPANTS IN THE EQUITIES MARKET SOBERED RESIGNING TO A FEW SESSIONS OF CORRECTION BEFORE ANOTHER UPWARD PUSH IF WE DON'T HAVE SOME TYPE OF BREAK THEN MORE GAINS ARE OUT OF THE QUESTION SAID HARUSHIGE KOBAYASHI A TECHNICAL ANALYST AT YAMAICHI SECURITIES CO WIDESPREAD ANTICIPATION OF AN ECONOMIC RECOVERY HAS FUELED THE NIKKEI'S 21 SURGE IN THE PAST MONTHANDAHALF INCLUDING A MORE THAN 850POINT JUMP TUESDAY ON NEWS OF A RECORD 132 TRILLION YEN 11671 BILLION FISCALSTIMULUS PLAN FIRSTSECTION VOLUME WAS ESTIMATED AT 550 MILLION SHARES DOWN FROM 63749 MILLION SHARES THURSDAY RETREATING ISSUES SWAMPED ADVANCING ISSUES 821 TO 271 WHILE 99 ISSUES WERE UNCHANGED SHARE PRICES TRENDED LOWER THROUGH THE SESSION AS UNWINDING OF CASHEQUITY POSITIONS BY BASKET ARBITRAGERS WHO DEAL IN LOTS OF THE INDEXES MET UP WITH PROFITTAKING BY GENUINE INVESTORS DEALERS SAID OLIVIER NIMESKERN A TRADER AT CREDIT LYONNAIS SECURITIES JAPAN SAID DIRECTION IN THE COMING WEEK DEPENDS HEAVILY ON THE OUTCOME OF THE MIYAZAWACLINTON TALKS MOST OF THE GOOD NEWS IS IN THE MARKET ALREADY HE SAID IT'S PURE OPTIMISM THE FUNDAMENTALS ARE GONE MOVING AGAINST THE DOWNTREND WAS MAZDA MOTOR CORP WHICH JUMPED 51 YEN 45 CENTS OR 93 TO 601 YEN THE CAR MAKER ON THURSDAY ANNOUNCED THAT IT HAS DEVELOPED AN ENGINE THAT IMPROVES FUEL EFFICIENCY BY 1015 COMPARED WITH CONVENTIONAL MOTORS IT SAID IT WILL INSTALL THE NEW ENGINES IN A CAR TO BE MARKETED IN THE NEAR FUTURE IN LONDON SHARE PRICES ENDED A DISMAL WEEK WITH A LOSS OF 153 POINTS AS INFLATION FEARS RESURFACED THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ENDED AT 28244 ON LIGHT VOLUME OF 5852 MILLION SHARES UP FROM 5843 MILLION THURSDAY FOR THE WEEK AS A WHOLE THE BENCHMARK FTSE 100 SHARE INDEX GAINED JUST 26 POINTS THE FT 30STOCK INDEX CLOSED AT 22025 DOWN 33 POINTS THE MARKET'S OPENING WEAKNESS WAS EXACERBATED AFTER THE GOVERNMENT REPORTED THAT SHOP PRICES IN MARCH ROSE BY MORE THAN EXPECTED THE MARCH RETAIL PRICE INDEX ROSE BY 19 AGAINST MARKET EXPECTATIONS OF A GAIN OF 17 FROM A YEAR AGO THE UNDERLYING RATE WHICH STRIPS OUT THE EFFECT OF MORTGAGE INTEREST PAYMENTS ROSE 35 COMPARED WITH EXPECTATIONS OF A 33 GAIN THE MARKET TOOK THE NUMBERS BADLY SAID SAVVAS SAVOURI STRATEGIST AT HOARE GOVETT SECURITIES LTD THE CONSENSUS NOW IS THAT INFLATION FROM THE FOOD RETAILING SIDE MAY BEGIN TO BE UNLEASHED IN THE COMING MONTHS AND THIS CARRIES IMPLICATIONS FOR UK INTEREST RATES THE GILT MARKET SANK SHARPLY FRETTING THAT INTEREST RATES MAY HAVE TO RISE IF INFLATION CROSSES THE GOVERNMENT'S CEILING OF 4 INDEED LINGERING HOPES OF LOWER RATES FROM THE CURRENT 6 SEEM TO HAVE ALL BUT DISAPPEARED SUSHIL WADHWANI DIRECTOR OF UK AND EUROPEAN STRATEGY AT GOLDMAN SACHS INTERNATIONAL SAID FROM THE COMBINATION OF BETTERTHANEXPECTED ACTIVITY NEWS AND THE WORSETHANEXPECTED INFLATION NEWS THIS WEEK IT'S CLEAR THAT INTEREST RATES WON'T COME DOWN THE GOVERNMENT REPORTED HIGHERTHANEXPECTED FACTORY OUTPUT FOR FEBRUARY EARLIER IN THE WEEK BUT DESPITE THE MARKET'S CHEERLESS MOOD MR WADHWANI BELIEVES THAT IT'S NOT ALL BAD NEWS AHEAD FOR UK STOCK PRICES I DON'T THINK THE GOOD NEWS ON ACTIVITY IS ALL IN YET HE SAYS ARGUING THAT THE MARKET HAS YET TO REACT SUFFICIENTLY TO SIGNS THAT THE ECONOMY IS REVIVING GERMAN SHARE PRICES ENDED NARROWLY MIXED FRIDAY WITH A SHARP GAIN IN VOLKSWAGEN AG DEEMED THE DAY'S SOLE HIGHLIGHT THE DAX 30STOCK INDEX EDGED UP 364 POINTS OR 02 TO 167885 POINTS IT WAS THE FIFTH STRAIGHT DAY OF GAINS MANY OF THEM SMALL AND LEFT THE INDEX UP 2312 POINTS IN A HOLIDAYSHORTENED WEEK VW BENEFITED FROM NEWS THAT MARCH SALES WERE DOWN ONLY 05 FROM A YEAR EARLIER WHICH ONE TRADER DESCRIBED AS NOT TOO BAD VW SURGED 640 MARKS OR 21 TO 31770 MARKS 19788 DEALINGS OTHERWISE WERE SUBDUED BY THE EASTER HOLIDAY AT THE START OF THE WEEK AND THE ACCOMPANYING ABSENCE OF MANY PLAYERS CUSTOMER ORDERS WERE SCARCE ALL WEEK DEALERS SAID OF THE 30 DAX STOCKS PRICES OF 18 ADVANCED WHILE NINE DECLINED AND THREE WERE UNCHANGED FROM A TECHNICAL VIEWPOINT THE WEEK'S CONSOLIDATION HAS HELPED PUT THE MARKET IN NEUTRAL AFTER BEING OVERSOLD ON A FOUR TO SIXWEEK VIEW SAID RALF BENDER MARKET STRATEGIST WITH DB RESEARCH GMBH A UNIT OF DEUTSCHE BANK ON A MEDIUM AND LONGERTERM VIEW HOWEVER THE MARKET REMAINS OVERBOUGHT IN SEOUL SHARE PRICES TUMBLED AS CAUTIOUS INVESTORS PULLED BACK BEFORE THE MARKET COULD REACH A NEW HIGH FOR THE YEAR A RUMOR INVOLVING THE FINANCIAL PROBLEMS OF HANYANG CO DEALT A FATAL BLOW TO THE MARKET WHICH ALREADY BEGAN FEELING BURDENED BY THE FACT THAT IT WAS NEAR THE PREVIOUS HIGH SAID KIM SUNGWAN AN ANALYST AT SAMSUNG SECURITIES CO SECURITIES AUTHORITIES SUSPENDED THE TRADING OF THE CONSTRUCTION COMPANY CONFIRMING THE VERITY OF THE RUMOR THE KOREA COMPOSITE STOCK PRICE INDEX WAS DOWN 990 POINTS TO 70686 VOLUME WAS AN ACTIVE 632 MILLION SHARES UP FROM 509 MILLION SHARES THURSDAY AND IN SINGAPORE SHARES SHOT UP AS THE KEY INDEX HIT ANOTHER RECORD ON FRESH OVERSEAS BUYING THE MARKET RALLIED TO A STRONG CLOSE WITH LITTLE PROFITTAKING SIDETRACKING ITS ADVANCE TRADERS SAID AT THE CLOSE THE STRAITS TIMES INDUSTRIALS INDEX JUMPED 3195 POINTS OR 19 TO 176335 HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX CALCULATED IN LOCAL CURRENCIES IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9304190106 930419 BUSINESS BRIEF AVON PRODUCTS INC JUDGE'S RULING ALLOWS SUIT BY WERTHEIM TO GO TO TRIAL A FEDERAL COURT IN NEW YORK RULED THAT A LAWSUIT FILED BY WERTHEIM SCHRODER & CO AGAINST AVON PRODUCTS INC ON BEHALF OF HOLDERS OF A CLASS OF AVON PREFERRED SHARES WILL BE ALLOWED TO PROCEED TO TRIAL OVER AVON'S OBJECTIONS NEW YORKBASED AVON HAD SOUGHT A SUMMARY DISMISSAL OF THE SUIT FROM US DISTRICT JUDGE PETER K LEISURE THE PREFERRED EQUITYREDEMPTION CUMULATIVE STOCKS OR PERCS WERE A CLASS OF 18 MILLION SHARES ISSUED BY AVON IN JUNE 1988 AND REDEEMED IN JUNE 1991 WERTHEIM HAD BOUGHT MANY OF THE PREFERRED SHARES IN ITS APRIL 1991 SUIT WERTHEIM ALLEGED THE BEAUTY PRODUCTS COMPANY FAILED TO REDEEM THE PERCS AT THE PROPER EXCHANGE PRICE AND UNDER THE TERMS AND CONDITIONS SET FORTH IN THE PROSPECTUS AT THE TIME AVON CALLED THE SUIT FRIVOLOUS IN DENYING AVON'S MOTION JUDGE LEISURE FOUND THAT THERE WAS A REASONABLE BASIS FOR WERTHEIM'S CLAIMS AND THAT THE MATTER SHOULD BE RESOLVED BY A JURY NO TRIAL DATE HAS BEEN SET WERTHEIM IS SEEKING IN EXCESS OF 200 MILLION IN DAMAGES AN AVON SPOKESMAN SAID FRIDAY THE COMPANY WOULD VIGOROUSLY CONTEST THE SUIT IN COURT 9304190105 930419 GPA'S OWNERS MAY BE WILLING TO CEDE CONTROL GE OTHER PARTIES ARE SAID TO DISCUSS INVESTMENT IN AIRCRAFT LEASING FIRM BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL THE PRIVATE OWNERS OF GPA GROUP PLC ARE WILLING TO CEDE CONTROL OF THE AIRCRAFTLEASING COMPANY TO A NEW INVESTOR ACCORDING TO PEOPLE CLOSE TO THE SEARCH FOR MUCHNEEDED CAPITAL THE DISCUSSIONS SIGNAL THE FINANCIAL STRAITS THE DEBTHEAVY IRISH COMPANY IS IN INDIVIDUALS CLOSE TO THE COMPANY BELIEVE THAT SELLING A CONTROLLING STAKE COULD SOLVE MUCH OF GPA'S PROBLEMS ALTHOUGH TERMS WOULD HAVE TO BE STRUCK ON WHETHER A SUITOR WOULD ASSUME THE COMPANY'S 68 BILLION DEBT LOAD GPA IS IN DISCUSSIONS WITH SEVERAL POTENTIAL INVESTORS INCLUDING GENERAL ELECTRIC CO PEOPLE CLOSE TO THE TALKS SAY IT'S UNCLEAR HOWEVER HOW MUCH OF A STAKE GE WOULD SEEK GPA TURNED TO OUTSIDE INVESTORS IN THE PAST MONTH AFTER THE COMPANY'S 23 MAJOR SHAREHOLDERS CONSISTING OF FINANCIAL INSTITUTIONS AIRLINES AND MANAGEMENT FAILED TO COMMIT 200 MILLION TO REGAIN ITS FINANCIAL FOOTING A CRUCIAL PART OF THE COMPANY'S STRATEGY BUT WITH DEBT PAYMENTS DUE IN THE NEXT COUPLE OF MONTHS CAUSING THE CLOCK TO TICK LOUDER GPA COULD END UP SELLING EFFECTIVE CONTROL PEOPLE CLOSE TO THE COMPANY SAY THE NUMBER ONE OBJECTIVE IS TO KEEP THIS COMPANY VIABLE ONE ADDED GPA IS BELIEVED TO HAVE LINED UP AROUND 100 MILLION FROM EXISTING SHAREHOLDERS FOR A CASHRICH SUITOR TO OBTAIN MAJORITY CONTROL IT WOULD LIKELY HAVE TO COMMIT MORE THAN 100 MILLION OR OTHERWISE PROVIDE ADDITIONAL FINANCIAL RESOURCES WITH GPA'S 68 BILLION IN DEBT ANALYSTS BELIEVE THAT AN INVESTOR WOULD EITHER HAVE TO PAY DOWN DEBT WITH ADDITIONAL EQUITY OR NEGOTIATE WITH UNSECURED CREDITORS TO REDUCE ITS FINANCIAL BURDEN IF SOMEONE PUTS IN EQUITY AND THEN NEGOTIATES WITH BONDHOLDERS THEY'RE WELL ON THEIR WAY TO LONGTERM VIABILITY SAID JACK HERSCH DIRECTOR OF RESEARCH AT MJ WHITMAN LP A DISTRESSEDSECURITIES FIRM GE OF FAIRFIELD CONN HAS ALREADY HAD DISCUSSIONS WITH THE COMPANY ABOUT AN EQUITY INFUSION PEOPLE FAMILIAR WITH THE TALKS SAY GE IS A MAJOR AIRCRAFT ENGINE MANUFACTURER AND ITS GE CAPITAL CORP FINANCE UNIT IS ONE OF THE LARGEST LEASING COMPANIES IN THE WORLD AND OWNS MORE THAN 500 COMMERCIAL AIRCRAFT THROUGH ITS POLARIS AIRCRAFT LEASING UNIT THE INVESTMENT BANKING FIRM JAMES D WOLFENSOHN INC WHICH IS ADVISING GPA ON FINDING NEW INVESTORS DECLINED COMMENT GPA AND GE ALSO DECLINED TO COMMENT GE WAS AT ONE POINT A GPA SHAREHOLDER AND HAS BEEN SCOOPING UP ASSETS IN EUROPE AND DISTRESSED PROPERTIES IN THE US IN THIS CASE GE WOULD BE BUYING STOCK THAT GPA IS SELLING FOR 1 A SHARE FAR BELOW THE 20 A SHARE GPA WAS SEEKING LAST JUNE PEOPLE CLOSE TO GPA ADMIT THAT THEY HOPE TO FIND A STRONG PARENT MUCH LIKE INTERNATIONAL LEASE FINANCING CORP DID IN 1990 ILFC ONE OF GPA'S MAJOR COMPETITORS WAS PURCHASED BY AMERICAN INTERNATIONAL GROUP INC A TRIPLEARATED INSURANCE COMPANY FOR 125 BILLION LAST WEEK GPA RECEIVED ANOTHER WAIVER FROM LENDERS THROUGH EARLY MAY TO COMPLETE ITS BANK RESTRUCTURING THE COMPANY MISSED THE APRIL 18 DEADLINE TO RESTRUCTURE ITS BANK DEBT BUT LENDERS SAY THEY ARE CLOSE TO COMPLETING THE DEAL THE COMPANY IS ASKING LENDERS TO DEFER 1 BILLION IN PRINCIPAL PAYMENTS AND LOOSEN FINANCIAL COVENANTS WITH FINANCING DRYING UP LAST YEAR AND THE AIRCRAFT INDUSTRY IN A SLUMP GPA UNDERTOOK A PLAN TO SHORE UP ITS BALANCE SHEET THE PLAN INCLUDED LOAN DEFERRALS CANCELLATION OF BILLIONS OF DOLLARS' WORTH OF AIRCRAFT ORDERS AND THE 200 MILLION EQUITY INJECTION FROM ITS OWNERS THE MANUFACTURING AGREEMENTS ARE LARGELY IN PLACE THE BANK AGREEMENT IS EXPLICITLY CONDITIONED UPON RECEIVING THE EQUITY BUT A HANDFUL OF LENDERS ARE STILL HOLDING OUT THE COMPANY'S CORE GROUP OF BANKS LED BY CITICORP SWISS BANK CORP NATIONAL WESTMINSTER BANK PLC AND MITSUBISHI TRUST & BANKING CORP MET THURSDAY TO COMPLETE FINAL DOCUMENTS TO BE SENT TO THE BANK GROUP THE BANK GROUP HAS GIVEN THE COMPANY UNTIL MAY 7 TO COMPLETE THE NEW BANK ARRANGEMENT LATER IN MAY 52 MILLION IN BONDS MATURE WITH AN ADDITIONAL 150 MILLION IN JUNE AND BANKERS WILL BE WARY OF ALLOWING THOSE PAYMENTS TO BE MADE TO OTHER CREDITORS WITHOUT A RESTRUCTURING ACCORD IN PLACE IF THE COMPANY CAN COMPLETE ITS PLAN IT WILL BEGIN TO RAISE ADDITIONAL CASH THROUGH THE SALE OF AIRCRAFT OR LEASES WAITING IN THE WINGS IS A 750 MILLION OFFERING OF SECURITIES BACKED BY AIRCRAFT LEASES AS PART OF ITS PLAN TO REDUCE ITS DEBT LOAD GPA IS PLANNING TO SELL BETWEEN 1 BILLION AND 2 BILLION WORTH OF ASSETS ANNUALLY OFFICIALS SAY 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 9304190104 930419 LAW JONES DAY AGREES TO SETTLE LAWSUIT OVER LINCOLN S&L BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL JONES DAY REAVIS & POGUE AGREED IN PRINCIPLE TO SETTLE A RESOLUTION TRUST CORP LAWSUIT ACCUSING THE LAW FIRM OF CONTRIBUTING TO THE COLLAPSE OF LINCOLN SAVINGS & LOAN ASSOCIATION ALTHOUGH THE AMOUNT OF THE SETTLEMENT WASN'T DISCLOSED PEOPLE FAMILIAR WITH THE NEGOTIATIONS SAID IT WAS GREATER THAN THE 41 MILLION THAT NEW YORK LAW FIRM KAYE SCHOLER FIERMAN HAYS & HANDLER AGREED TO PAY LAST YEAR TO SETTLE ITS DISPUTE WITH THRIFT REGULATORS OVER WORK FOR LINCOLN ATTORNEYS REPRESENTING JONES DAY THE NATION'S SECONDLARGEST LAW FIRM AND THRIFT REGULATORS DECLINED TO PROVIDE DETAILS ABOUT THE SETTLEMENT WHICH WAS REACHED OVER THE WEEKEND ROBERT LONG AN ATTORNEY FOR JONES DAY FROM LOS ANGELES LAW FIRM LATHAM & WATKINS SAID A SETTLEMENT IS EXPECTED TO BE ANNOUNCED THIS MORNING IN FEDERAL COURT IN PHOENIX OPENING STATEMENTS IN THE TRIAL WERE TO BEGIN TODAY IN PHOENIX A JURY FOR THE CASE WAS SELECTED A WEEK AGO AND SETTLEMENT TALKS HAVE CONTINUED SINCE THEN IN THE CIVIL SUIT THE RTC WAS SEEKING DAMAGES OF MORE THAN 200 MILLION FROM THE CLEVELANDBASED LAW FIRM FOR ALLEGEDLY AIDING IN THE FRAUD THAT BROUGHT DOWN LINCOLN JONES DAY WAS RETAINED IN 1986 BY CHARLES KEATING WHOSE PHOENIXBASED AMERICAN CONTINENTAL CORP OWNED LINCOLN TO REVIEW THE THRIFT'S TROUBLED LOAN FILES THE RTC ACCUSED JONES DAY OF HELPING MR KEATING AND OTHER LINCOLN EXECUTIVES DEFRAUD THE SAVINGS AND LOAN BY COVERING UP UNSAFE AND UNSOUND BUSINESS PRACTICES MR KEATING IS SERVING A 10YEAR SENTENCE FOR FRAUD JONES DAY HAS MAINTAINED THAT IT DID NOTHING WRONG IN ITS THREE MONTHS' WORK FOR LINCOLN THE LAW FIRM SAID IT MET ITS LEGAL OBLIGATIONS BY REPORTING THE IRREGULARITIES IT FOUND TO LINCOLN OFFICIALS JONES DAY PREVIOUSLY AGREED TO PAY 24 MILLION TO SETTLE A SUIT BROUGHT BY AMERICAN CONTINENTAL BONDHOLDERS OVER ALLEGED WRONGDOING AT LINCOLN THE AGREEMENT REACHED OVER THE WEEKEND ALSO IS EXPECTED TO INCLUDE WILLIAM SCHILLING A JONES DAY ATTORNEY WHO HELPED PITCH THE LAW FIRM TO LINCOLN IN EARLY 1986 MR SCHILLING FORMERLY DIRECTOR OF THE FEDERAL HOME LOAN BANK BOARD'S OFFICE OF EXAMINATIONS AND SUPERVISION JOINED JONES DAY IN 1985 AFTER HE WROTE A REPORT CRITICIZING LINCOLN'S OPERATIONS MR SCHILLING'S ATTORNEY HAMILTON FOX III OF THE WASHINGTON OFFICE OF SUTHERLAND ASBILL & BRENNAN DIDN'T RETURN PHONE CALLS SEEKING COMMENT 9304190103 930419 MARKETING & MEDIA NBC PAYS 40 MILLION TO AIR 1994 SUPER BOWL NEW YORK THE NATIONAL FOOTBALL LEAGUE AWARDED THE RIGHTS TO SUPER BOWL XXVIII TO NBC WHICH BID 40 MILLION FOR THE JANUARY 1994 GAME AS A RESULT THE SUPER BOWL WHICH IN THE PAST HAS ROTATED AMONG ABC CBS AND NBC WILL AIR EXCLUSIVELY ON ONE NETWORK TWO YEARS IN A ROW FOR THE FIRST TIME NBC'S JAN 31 AIRING OF SUPER BOWL XXVII WAS THE MOSTWATCHED TELEVISION PROGRAM EVER DRAWING ABOUT 1334 MILLION VIEWERS THE DEAL ALSO MARKS THE FIRST TIME THE CHAMPIONSHIP GAME HAS BEEN SOLD SEPARATELY FROM THE REGULARSEASON NFL PACKAGE WHEN THE NFL SIGNED THE LAST 27 BILLION FOURYEAR CONTRACT WHICH EXPIRES AT THE END OF NEXT SEASON IT ASSIGNED THE FIRST THREE SUPER BOWL GAMES IN ROTATION TO THE THREE NETWORKS AND HELD BACK THE FOURTH GAME THE NETWORKS HAVE COMPLAINED THEY WILL LOSE ABOUT 200 MILLION ON NEXT YEAR'S NFL PACKAGE BEFORE THE SUPER BOWL IS FACTORED IN NBC A UNIT OF GENERAL ELECTRIC CO WAS THE ONLY BIDDER FOR THE GAME THE CAPITAL CITIES/ABC INC AND CBS INC NETWORK UNITS DECLINED TO BID AT 40 MILLION NBC WILL LIKELY BREAK EVEN ON THE GAME ITSELF IF IT AGAIN COMMANDS THE 850000 MINUS 15 FOR ADVERTISING AGENCY COMMISSIONS FOR EACH OF 56 30SECOND COMMERCIALS THAT IT GOT FOR THIS YEAR'S GAME THE NETWORK PROFITS OVERALL HOWEVER ON THE ADS SOLD IN PREGAME AND POSTGAME PROGRAMMING WHICH IN THE PAST HAVE BROUGHT IN AN ESTIMATED 8 MILLION TO 15 MILLION THE NETWORK CAN ALSO SELL SUPER BOWL ADS IN A PACKAGE WITH REGULAR SEASON GAMES 9304190102 930419 INTERNATIONAL WASHINGTON INSIGHT FIGHT BETWEEN FORMER SOVIET REPUBLICS IS SEEN BECOMING BALKANSLIKE DISASTER BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON RECENT FIGHTING BETWEEN ARMENIA AND AZERBAIJAN THREATENS TO IGNITE INTO A BALKANSLIKE NIGHTMARE THE TWO NATIONS WHICH WERE PART OF THE OLD SOVIET UNION HAVE BEEN WARRING SINCE 1988 OVER NAGORNOKARABAKH AN ENCLAVE IN AZERBAIJAN THAT IS POPULATED MOSTLY BY ARMENIANS THE CONFLICT HASN'T RECEIVED MUCH ATTENTION FROM THE CLINTON ADMINISTRATION BUT THERE IS A REAL DANGER THAT ESCALATION COULD DRAW IN TURKEY A MAJOR US ALLY IRAN A US ADVERSARY AND RUSSIA WHICH ALREADY IS GRIPPED BY SEVERE ECONOMIC AND POLITICAL PROBLEMS TURKEY RISKS POLITICAL INSTABILITY AT HOME IF IT FAILS TO PROTECT AZERBAIJAN WITH WHICH IT HAS AN ETHNIC AND LINGUISTIC AFFINITY IRAN WHICH HAS A SUBSTANTIAL AZERBAIJANI MINORITY SUPPORTS AZERBAIJAN BUT IT FEARS THAT THE FIGHTING COULD PROMPT AN IRREDENTIST MOVEMENT WITHIN ITS BORDERS RUSSIA ALWAYS HAS CONSIDERED THE REGION PART OF ITS SPHERE OF INFLUENCE AND THE CONSERVATIVE FORCES THAT OPPOSE PRESIDENT BORIS YELTSIN SUPPORT THE EXTENSION OF MILITARY POWER TO REGAIN PART OF THEIR LOST EMPIRE ADD THE AGEOLD HATRED BETWEEN CHRISTIAN ARMENIANS AND MUSLIM AZERBAIJANIS AND THE REGION BECOMES A TINDERBOX THAT MAKES THE BALKANS LOOK LIKE A SUNDAY SCHOOL PICNIC SAYS PAUL GOBLE A FORMER STATE DEPARTMENT OFFICIAL AND EXPERT ON THE REGION ALTHOUGH THIS CONFLICT SEEMS REMOTE IT OFFERS A TEST OF WHETHER THE CLINTON ADMINISTRATION HAS LEARNED ITS LESSON FROM THE BITTER WARFARE IN THE FORMER YUGOSLAVIA THE LONGER SUCH TRIBAL CONFLICTS FESTER THE MORE DIFFICULT IT BECOMES FOR OUTSIDERS TO EXERT INFLUENCE TO QUELL THE VIOLENCE LATE LAST WEEK ARMENIAN FORCES WERE REPORTED TO HAVE CALLED OFF THEIR LATEST OFFENSIVE BUT IT WAS UNCLEAR WHETHER THE QUIET WOULD LAST PREVIOUS CEASEFIRES HAVE QUICKLY BROKEN DOWN IN ADDITION TO WANTING TO PREVENT A CLASH INVOLVING THREE MAJOR POWERS THE US HAS OTHER INTERESTS AT STAKE AZERBAIJAN WANTS THE US TO HELP IT DEVELOP ITS RICH OIL RESOURCES THROUGH JOINT EXPLORATION REFINERY CONSTRUCTION AND THE DEVELOPMENT OF A PETROCHEMICAL INDUSTRY AND PROMOTING PEACE BETWEEN ARMENIA AND AZERBAIJAN WOULD HELP FOSTER STABILITY IN THE SOUTHERN RIM OF THE FORMER SOVIET UNION AZERBAIJAN'S FOREIGN MINISTER TOFIK GASYMOV CAME TO WASHINGTON LAST WEEK TO URGE THE CLINTON ADMINISTRATION TO USE ITS INFLUENCE TO PERSUADE ARMENIA TO WITHDRAW ITS FORCES HE ALSO URGED THE ADMINISTRATION AND CONGRESS TO DROP A REQUIREMENT IMPOSED BY LAST YEAR'S FOREIGN AID LAW FOR THE FORMER SOVIET UNION THAT BARS US ASSISTANCE TO AZERBAIJAN UNTIL IT ENDS A BLOCKADE AND TAKES OTHER ACTIONS LANDLOCKED ARMENIA SAYS AZERBAIJAN AND TURKEY DON'T ALLOW GOODS TO REACH IT ITS OTHER MAIN SOURCE OF GOODS NEIGHBORING GEORGIA IS NO LONGER RELIABLE BECAUSE OF POLITICAL TURMOIL THERE POLITICALLY ARMENIA HAS REACHED AN IMPASSE IN ITS ABILITY TO PERSUADE THE MAJOR POWERS TO HELP LIFT THE BLOCKADE COMPLAINS ROUBEN ADALIAN OF THE ARMENIAN ASSEMBLY OF AMERICA MEANWHILE REGIONAL TENSIONS ARE MOUNTING LAST WEEK TURKEY CHARGED THAT THERE IS HEAVY RUSSIAN INVOLVEMENT IN THE FIGHTING AND REAFFIRMED ITS SUPPORT FOR AZERBAIJAN AT THE SAME TIME IRANIAN PRESIDENT HASHEMI RAFSANJANI SAID IN TEHRAN THAT HIS GOVERNMENT WOULD TAKE A MORE SERIOUS STANCE IF THERE IS A CONTINUATION OF THE FIGHTING WHICH NOW IS ABOUT 12 MILES FROM IRAN'S BORDER THE STATE DEPARTMENT RECENTLY CONDEMNED THE FIGHTING AND CALLED FOR THE WITHDRAWAL OF ARMENIAN FORCES FROM AZERBAIJAN SUCH STATEMENTS MAY NOT BE ENOUGH WASHINGTON SHOULD MAKE CLEAR TO MOSCOW THAT RUSSIA CAN'T BECOME INVOLVED MILITARILY IN THE CONFLICT MR GOBLE COMPLAINS THAT OVER THE PAST FEW YEARS THE US HAS SENT THE OPPOSITE SIGNAL FOR EXAMPLE IT REMAINED SILENT WHEN RUSSIA DEPLOYED ITS ARMY IN THE NEWLY INDEPENDENT REPUBLIC OF MOLDOVA MR GOBLE ADDS THAT THE US SHOULD STOP DISCOURAGING IRAN FROM PLAYING A MEDIATING ROLE IN THE CONFLICT IN THE PAST IRAN HAS HELPED BRING ABOUT SEVERAL CEASEFIRES BUT BECAUSE OF WASHINGTON'S ANTAGONISM TOWARD TEHRAN THE US PREFERS TO SEE PEACE EFFORTS CONDUCTED UNDER THE COUNCIL FOR SECURITY AND COOPERATION IN EUROPE AN ORGANIZATION THAT DOESN'T INCLUDE IRAN MR GOBLE SUGGESTS THAT A REGIONAL CONFERENCE INCLUDING IRAN WOULD BE A BETTER FORUM IF THERE ISN'T A BREAKTHROUGH SOON ANOTHER YUGOSLAVIA COULD BE IN THE OFFING WAITING IN THE WINGS IN BOTH ARMENIA AND AZERBAIJAN ARE MORE MILITANT GROUPS WILLING TO CARRY THE WAR EVEN FURTHER AND WHO BELIEVE THE ONLY SOLUTION IS A MILITARY ONE WARNS RONALD SUNY A HISTORY PROFESSOR AT UNIVERSITY OF MICHIGAN 9304190101 930419 GREYHOUND ATU IN TALKS TO SHAPE TENTATIVE CONTRACT END LABOR DISPUTE BY ROBERT TOMSHO AND KEVIN G SALWEN STAFF REPORTERS OF THE WALL STREET JOURNAL AFTER A THREEYEAR BATTLE GREYHOUND LINES INC AND THE AMALGAMATED TRANSIT UNION ARE HAMMERING OUT THE OUTLINES OF A TENTATIVE CONTRACT AGREEMENT TO END THEIR OFTENBITTER LABOR DISPUTE WITH THE ATU'S GREYHOUND BARGAINING UNIT IN DISARRAY AND GREYHOUND EAGER TO MAINTAIN THE MOMENTUM OF ITS REBUILDING EFFORT THE TWO SIDES HAVE BEEN INVOLVED IN INTENSE NEGOTIATIONS FOR WEEKS WITH MEETINGS IN DALLAS AND WASHINGTON DC AND PARTICIPATION BY BOTH FRANK SCHMIEDER GREYHOUND'S PRESIDENT AND CHIEF EXECUTIVE OFFICER AND JAMES LA SALA THE ATU PRESIDENT WHILE THE PARTIES HAVE YET TO PUT A DEFINITIVE AGREEMENT IN WRITING THE NEGOTIATIONS APPEAR TO BE MAKING PROGRESS LAST WEEK THE PRESIDENTS OF THE ATU'S LOCALS WERE CALLED TO WASHINGTON FOR TWO DAYS OF MEETINGS WITH COMPANY NEGOTIATORS AND ON FRIDAY THE AMALGAMATED COUNCIL OF GREYHOUND LOCAL UNIONS THE ATU'S BARGAINING UNIT ADVISED MEMBERS VIA A TELEPHONE HOTLINE TO BEGIN SIGNING UP FOR A JOB CALLBACK LIST TOP NEGOTIATORS FOR BOTH THE UNION AND THE DALLASBASED BUS COMPANY EITHER DID NOT RETURN PHONE CALLS OR DECLINED TO DISCUSS THE TALKS BUT PERSONS FAMILIAR WITH THE NEGOTIATIONS SAID THEIR SUCCESS APPEARS TO HINGE UPON A FINANCIAL SETTLEMENT OF THE UNION'S BACKPAY CLAIMS WHICH THE COMPANY IS SAID TO BE CONSIDERING OTHER MAJOR ISSUES TO BE RESOLVED INCLUDE A TIMETABLE FOR GETTING A STILL UNDETERMINED NUMBER OF STRIKING ATU DRIVERS BACK TO WORK AND A SETTLEMENT OF CERTAIN SENIORITY ISSUES UNLIKE THE CONTENTIOUS NEGOTIATIONS THAT TRIGGERED A DEVASTATING STRIKE IN 1990 PAY AND BENEFITS DO NOT APPEAR TO BE MAJOR STUMBLING BLOCKS ALTHOUGH DETAILS WERE UNAVAILABLE STILL ANY TENTATIVE SETTLEMENT WOULD HAVE TO GAIN THE APPROVAL OF THE UNION RANKANDFILE AS WELL AS THAT OF A FEDERAL ADMINISTRATIVE LAW JUDGE IN MILWAUKEE WISC WHO HAS BEEN HEARING AN UNFAIR LABOR PRACTICES CASE BROUGHT AGAINST THE COMPANY BY THE NATIONAL LABOR RELATIONS BOARD'S GENERAL COUNSEL MEANWHILE A SETTLEMENT BETWEEN GREYHOUND AND THE UNION WOULD PROBABLY ALSO REQUIRE THE APPROVAL OF THE FEDERAL BANKRUPTCY JUDGE IN BROWNSVILLE TEXAS WHO OVERSAW GREYHOUND'S REORGANIZATION ALTHOUGH GREYHOUND EMERGED FROM CHAPTER 11 IN OCTOBER 1991 BOTH SIDES ARE SAID TO BE HOPING TO SETTLE THE BACKPAY ISSUE WITH PROCEEDS FROM A SPECIAL FUND SET UP AS PART OF THE COMPANY'S REORGANIZATION PLAN AND STILL SUBJECT TO THE BANKRUPTCY COURT'S JURISDICTION DURING THE CHAPTER 11 CASE THE BANKRUPTCY JUDGE AGREED WITH GREYHOUND'S ESTIMATE OF ITS POTENTIAL BACKPAY LIABILITY AND TO PROVIDE FOR ANY EVENTUAL JUDGMENT AGAINST GREYHOUND REQUIRED THE COMPANY TO SET ASIDE CERTAIN STOCK AND NOTES CURRENTLY ESTIMATED BY THE UNION TO BE WORTH AS MUCH AS 24 MILLION THE LATEST ROUND OF TALKS ARE SAID TO HAVE BEEN REQUESTED BY THE UNION HAVING FAILED TO BLOCK GREYHOUND'S REORGANIZATION THE ATU BARGAINING UNIT HAS SEEN ITS NUMBER OF ACTIVE LOCALS DWINDLE TO SEVEN FROM 19 BEFORE THE STRIKE MOREOVER WHILE MAINTAINING THAT ITS STRIKE IS CONTINUING LAST YEAR THE UNION PERMITTED ITS MEMBERS TO RETURN TO WORK AT GREYHOUND AS OF JAN 31 ABOUT 1000 HAD DONE SO JOINING ABOUT 2300 REPLACEMENT DRIVERS MEANWHILE DESPITE DECLINES IN RIDERSHIP GREYHOUND WAS ABLE TO CUT COSTS AND POST A NET INCOME OF 109 MILLION OR 110 A SHARE FOR THE YEAR ENDED DEC 31 COMPARABLE RESULTS FOR 1991 WERE NOT AVAILABLE BECAUSE OF THE REORGANIZATION FOR THE FIRST QUARTER ENDED MARCH 31 TRADITIONALLY A SLACK TIME IN THE BUS INDUSTRY GREYHOUND REPORTED A NET LOSS OF 51 MILLION OR 52 CENTS A SHARE COMPARED WITH A NET LOSS OF 96 MILLION OR 98 CENTS A SHARE IN THE YEAREARLIER PERIOD AMID SUCH RESULTS THE COMPANY SAID LAST WEEK THAT IT PLANNED TO BUY 300 NEW BUSES WITH MOST OF THE PROCEEDS FROM A 75 MILLION COMMON STOCK OFFERING FOR WHICH IT HAS REGISTERED STILL GREYHOUND HAS ITS OWN REASONS FOR ENDING ITS LABOR TROUBLES INCLUDING REDUCING ITS LEGAL COSTS BOLSTERING ITS PUBLIC IMAGE AND PREPARING FOR THE COMING SUMMER TRAVEL SEASON WHICH TRADITIONALLY INVOLVES ADDING DRIVERS 9304190100 930419 NIPPON STEEL NKK KAWASAKI STEEL TO BID FOR MALAYSIAN PROJECT SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPANESE STEEL MAKERS WILL BID FOR A BIG GAS PIPELINE PROJECT IN MALAYSIA COMPANY SPOKESMEN SAID THREE JAPANESE STEEL MAKERS NIPPON STEEL CORP NKK CORP AND KAWASAKI STEEL CORP ARE LOOKING TO MAKE 123000 METRIC TONS OF LARGE DIAMETER PIPES FOR USE IN A PART OF THE PROJECT A KAWASAKI STEEL SPOKESMAN SAID BUT A NIPPON STEEL SPOKESMAN SAID NOTHING HAS BEEN DECIDED SPECIFICALLY ALTHOUGH THE COMPANY INTENDS TO BID FOR THE PROJECT HE AND A NKK SPOKESMAN SAID IT IS STILL UNDECIDED WHETHER THE STEEL MAKERS WILL TEAM UP FOR THE BIDDING THE PROJECT STAGE THREE OF THE PENINSULAR MALAYSIA GAS UTILIZATION OR PGU III IS AIMED AT BRINGING GAS TO ALL PARTS OF PENINSULAR MALAYSIA AND SINGAPORE FROM THE GAS FIELDS IN THE SOUTH CHINA SEA OFF TRENGGANU STATE 9304190099 930419 BEER IS THE BENEFICIARY AS EUROPEANS CHANGE TRADITIONAL DRINKING HABITS BY CACILIE ROHWEDDER STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS IN THE PAST SCANDINAVIANS WARMED UP ON COLD NIGHTS BY DRINKING SPIRITS AND SOUTHERN EUROPEANS ENDED LONG SUNNY DAYS WITH RED WINE NOW THEY'RE ALL DRINKING BEER EUROPEANS' DRINKING HABITS ARE CHANGING AND BEER IS THE MAIN BENEFICIARY OF THE TREND BEER SALES IN ITALY SPAIN AND SWEDEN GREW SUBSTANTIALLY BETWEEN 1991 AND 1992 ACCORDING TO DATA COMPILED FOR THE WALL STREET JOURNAL IN EUROPE BY MARKET RESEARCH GROUP AC NIELSEN IT'S PART OF THE COMMON MARKETIZATION OF PRODUCTS SAYS JAY BERRY A CONSUMER PRODUCTS SPECIALIST WITH THE MANAGEMENT CONSULTING FIRM BOOZ ALLEN & HAMILTON IN MILAN AS THE COMMON MARKET GROWS CLOSER TOGETHER THE CONSOLIDATION OF TASTES WILL FOLLOW NIELSEN'S FINDINGS SHOW A 12 INCREASE IN ITALIAN BEER SALES FOR LAST YEAR WHILE SPANISH SALES CLIMBED 88 IN SPAIN WHERE BEER HAS BECOME A POPULAR LUNCH DRINK THE BEVERAGE BENEFITED FROM THIRSTY TOURISTS FLOCKING TO THE SUMMER OLYMPICS AND WORLD EXPO AN IMPORTANT FACTOR IN BEER SALES IS THE LOCAL ALCOHOL TAX LAST WEEK GERARD VAN SCHAIK CHAIRMAN OF THE DUTCH BREWING GROUP HEINEKEN NV CITED HIGH EXCISE TAXES IN KEY EXPORT MARKETS AS THE MAIN REASON FOR LOWERTHANEXPECTED PROFIT LAST YEAR'S GROWTH IN SPANISH BEER SALES WAS A RESULT OF LOW TAXES WHICH MADE BEER A CHEAP CHOICE FOR CONSUMERS THE PARTY ENDS THIS YEAR HOWEVER WHEN SPAIN LIFTS EXCISE DUTIES ON ALCOHOL TO THE OFFICIAL MINIMUM LEVEL AGREED UPON IN THE EUROPEAN COMMUNITY FOR EXAMPLE 225 FOR ONE LITER OF PURE ALCOHOL IN BEER IN DENMARK WHERE RATES WERE ABOVE THE MINIMUM ALCOHOL TAXES WERE LOWERED RECENTLY SINCE THE RATES ARE KEYED TO ALCOHOL CONTENT HARD LIQUOR PRICES FELL THE MOST AS A RESULT DANES BOUGHT 75 MORE SPIRITS THAN THE PREVIOUS YEAR IN SWEDEN ON THE OTHER HAND ALCOHOL TAXES ARE SO HIGH THAT LOWALCOHOL BEVERAGES WON OVER HARD LIQUOR SWEDISH BEER SALES JUMPED ALMOST 22 IN 1992 ACCORDING TO NIELSEN'S STATISTICS IT'S A QUESTION OF PRICE SAYS ATE KAHREL A BEER ANALYST WITH WESSELIUS & CO A BANK IN AMSTERDAM HARD LIQUOR IS UNAFFORDABLE IN SWEDEN SWEDES AND SOUTHERN EUROPEANS ALSO BOUGHT MORE BEER BECAUSE INTERNATIONAL BEER COMPANIES OFFERED THEM MORE TO ESCAPE SATURATED HOME MARKETS LARGE BREWERIES EXPAND INTO COUNTRIES WHERE BEER CONSUMPTION IS ON THE RISE IN SPAIN FOR INSTANCE GUINESS PLC AND CARLSBERG AS OWN CRUZCAMPO THE LEADING BEER BRAND DAMM THE SECOND LARGEST BRAND BELONGS TO THE GERMAN FOOD CHAIN OETKER AND THE SPANISH BREWER SAN MIGUEL IN WHICH THE FRENCH BEVERAGE FIRM BSN SA HOLDS A 24 STAKE EL AGUILA IS AN AFFILIATE OF HEINEKEN THERE IS A LOT OF MOVEMENT AND INCREASED COMPETITION IN THE BEER SECTOR SAYS MANUEL MOLLINS AT THE MADRID OFFICE OF MANAGEMENT CONSULTING FIRM AT KEARNEY WHILE SPAIN IS STILL ONE OF THE FASTESTGROWING MARKETS BEER SALES SLOWED WHEN THE TOURISTS LEFT AND THE RECESSION HIT SOUTHERN EUROPE CONTRACTING SALES IN SEVERAL EUROPEAN COUNTRIES SHOW THAT DRINKS AREN'T THE RECESSIONPROOF PRODUCTS THEY WERE THOUGHT TO BE IF YOU HAVE ESSENTIALS LIKE MORTGAGES TO PAY YOU'RE NOT GOING TO SPEND MONEY ON ALCOHOL SAYS A SPOKESWOMAN FOR WINE & SPIRITS INTERNATIONAL LTD A LONDON COMPANY THAT IMPORTS RUM FROM JAMAICA THE TOUGHER COMPETITION IN THE ALCOHOL MARKET INFLUENCES EUROPEANS' DRINKING HABITS MORE COMPETITION MEANS MORE ADVERTISING MORE CONSUMPTION AND CHEAPER PRICES MORE ADS ALSO INCREASE PEOPLE'S AWARENESS OF BRANDS AND GET THEM TO BUY PREMIUM BRANDS EXPLAINS AT KEARNEY'S MR MOLLINS PREMIUM AND LAGER BEERS HAVE BEEN ONE OF THE FEW SUCCESS STORIES IN THE EUROPEAN BEER SECTOR JOACHIM ALICH OF THE ASSOCIATION OF SMALL BREWERIES IN BAVARIA THINKS THAT HIGH QUALITY AND LOCAL PRODUCTS HAVE AN ADVANTAGE OVER EUROBEERS THAT TASTE THE SAME EVERYWHERE THE BIG BREWERS WILL HAVE MORE PROBLEMS THAN THOSE WHICH SELL AROUND THEIR OWN CHURCH STEEPLE HE EXPLAINS BAVARIANS WHO MAINLY DRINK HIGHFERMENTED WEISSBIER A GOLDCOLORED BREW MADE FROM WHEAT ARE WELL ABOVE THE YEARLY AVERAGE GERMAN BEER CONSUMPTION OF ALMOST 143 LITERS PER PERSON THE HIGHEST IN EUROPE BUT THE TREND IS NOT ONLY DRINKING BETTER IT'S ALSO DRINKING LESS WORLDWIDE SALES OF BEER WITH LITTLE OR NO ALCOHOL GREW ALMOST 6 LAST YEAR EUROPEANS ARE INCREASING THEIR CONSUMPTION OF BOOZEFREE BEER AS THEY TAKE ON HEALTHIER LIFESTYLES AND GREATER SOCIAL RESPONSIBILITY FOR EXAMPLE AGAINST DRUNK DRIVING TRAFFIC CONTROLS AND ADVERTISING LIMITATIONS HAVE BECOME STRICTER WHILE THE TASTE OF NONALCOHOLIC DRINKS HAS IMPROVED GERMANY IS EUROPE'S LARGEST MARKET FOR HEALTHY BEER CLAUSTHALER A GERMAN BRAND IS THE BIGGEST NAME WORLDWIDE SELLING 150 MILLION LITERS A YEAR LOWALCOHOL BEER IS ALSO WELLLIKED IN FRANCE AND IN THE NETHERLANDS WHERE THE BAVARIA BRAND GAINED POPULARITY AFTER IT WAS EXPORTED TO ALLIED TROOPS IN BOOZEBANNING SAUDI ARABIA DURING THE PERSIAN GULF WAR NOT ALL EUROPEANS LIKE THE HEALTHY ALTERNATIVE HOWEVER IT TASTES LIKE DISHWATER SAYS OLIVER BORTLOFF A FITLOOKING 28YEAROLD FROM AACHEN WHO ADMITS TO DRINKING THREE BOTTLES OF BEER A DAY BEFORE I DRINK THAT I'LL HAVE WATER OR COKE HE SAYS TAKING A BIG SIP FROM A CHILLED MUG OF VELTINS A WESTERN GERMAN REGIONAL BEER SPECIALTY BELGIAN AND BRITISH CONSUMERS NEVER ACQUIRED A TASTE FOR LOWALCOHOL BEER EITHER THE BRITISH WHO STILL DRINK MOST OF THEIR BEER IN PUBS HAVE A HARD TIME SWALLOWING THEIR PRIDE AND ORDERING BUZZFREE DRINKS BELGIANS SAY THAT THE TASTE OF NONALCOHOLIC BEER DOESN'T JUSTIFY ITS COMPARATIVELY HIGH PRICE THERE IS A STRONG BEER TRADITION HERE SAYS GUY BALZA AT THE MARKETING DEPARTMENT OF INTERBREW SA THE BELGIAN MAKER OF STELLA ARTOIS BEER PEOPLE WANT BEER WITH STRONG TASTE WHILE TRADITIONAL BEER BREWERS STRUGGLE TO PRESERVE THEIR MARKET SHARE IN A MORE SOBER WORLD SPIRIT MAKERS FIGHT TO SURVIVE NIELSEN'S DATA INDICATES THAT SPIRIT SALES GREW LITTLE IN 1992 EVEN IN GERMANY WHERE TWO YEARS OF STRONG DEMAND FROM THE EAST ENDED 10 YEARS OF SHRINKING SPIRIT CONSUMPTION SALES GROWTH SLOWED TO A MEAGER 2 LAST YEAR IN THE OVERALL DECLINING MARKET WHITE SPIRITS SUCH AS VODKA RUM GIN OR TEQUILA ADAPT TO THE LOWALCOHOL TREND MORE EASILY THAN BROWN WHISKEY OR BRANDY THEY SEEM LESS ALCOHOLIC BECAUSE ONE CAN MIX THEM WITH OTHER DRINKS SAYS PATRICE ZYGBAND A PARTNER AT AT KEARNEY'S PARIS OFFICE THEY CAN BE DRUNK ANY TIME A COGNAC IS OFFERED ONLY AFTER A GOOD MEAL AT HOME SPIRITS COMPANIES TRY TO MATCH THE SOBER REALITIES BY REDUCING THE ALCOHOL CONTENT IN THEIR PRODUCTS AND PROMOTING FRUITY LIQUORS THEY ALSO EMPHASIZE THE QUALITY OF BRAND NAMES A RECENT STUDY BY THE BRITISH INVESTMENT BANK UBS PHILLIPS & DREW SHOWS THAT GUINNESS THE WORLD'S LARGEST AND MOST PROFITABLE SPIRITS COMPANY CONCENTRATES ON ONE PROMISING BRAND IN EACH COUNTRY IT OPERATES ONLY JOHNNIE WALKER RED LABEL IS IN ALMOST ALL MARKETS WHILE ANALYSTS AGREE THAT THE LIQUOR MARKET IS AILING THEY SAY IT'S NOT DEAD PEOPLE IN SOUTHERN FRANCE WILL ALWAYS HAVE THEIR PASTIS LAUGHS MR ZYGBAND IT IS PART OF LIFE TO HAVE ALCOHOL PRODUCTS OF ALL KINDS AGREES DIETER MISCH THE HEAD OF THE GERMAN SPIRITS INDUSTRY ASSOCIATION PEOPLE DRINK DIFFERENT LIQUORS AT DIFFERENT OCCASIONS HE EXPLAINS HE SAYS THE INDUSTRY IS IN GOOD SPIRITS ABOUT THE FUTURE BECAUSE OF THE POSSIBILITES OPENED BY THE COMMON MARKET AND RISING PURCHASING POWER IN EASTERN EUROPE 9304190098 930419 INTERNATIONAL SHANGHAI EXCHANGE GRANTS SEATS TO THREE UK BROKERAGE FIRMS HONG KONG CHINA'S STOCK MARKETS OPENED A CRACK WIDER TO THE OUTSIDE WORLD FRIDAY WHEN THE SHANGHAI SECURITIES EXCHANGE GRANTED SEATS TO THREE FOREIGN BROKERAGE FIRMS WHILE FALLING SHORT OF FULL MEMBERSHIP ON THE EXCHANGE THE SEATS WILL ALLOW THE THREE BRITISHCONTROLLED FIRMS STANDARD CHARTERED SECURITIES JARDINE FLEMING BROKING LTD AND BARING BROTHERS & CO TO DEAL DIRECTLY IN CHINESE CLASS B SHARES STOCKS OPEN TO FOREIGN INVESTORS STANDARD CHARTERED SECURITIES IS A UNIT OF STANDARD CHARTERED BANK IT'S A SPECIAL CATEGORY OF SEAT CREATED FOR THIS PURPOSE SAID RAYMOND THEODOULOU CHAIRMAN OF STANDARD CHARTERED SECURITIES IN EFFECT THE SEATS WILL BE OWNED BY THE FOREIGN FIRMS BUT OPERATED BY SHANGHAI BROKERS HE SAID THE ACTION IS REGARDED AS LARGELY SYMBOLIC BECAUSE THE BSHARE MARKET LATELY HAS BEEN LACKLUSTER AT BEST DAILY VOLUME IN SHANGHAI B SHARES AVERAGED A PALTRY MILLION SHARES LAST WEEK COMPARED WITH MORE THAN 35 MILLION SHARES IN THE ASHARE MARKET OPEN TO CHINESE NATIONALS ALSO THE EXECUTION OF BSHARE TRADES THROUGH LOCAL CHINESE BROKERAGE FIRMS HAS IMPROVED ENORMOUSLY IN THE PAST YEAR MAKING DIRECT REPRESENTATION ON THE FLOOR LESS CRUCIAL SHANGHAI'S STOCK MARKET OPENED TO FOREIGN INVESTORS ON FEB 21 AND THERE ARE NOW 10 COMPANIES WITH CLASS B SHARES LISTED ON THE EXCHANGE 9304190097 930419 BUSINESS BRIEF PAGING NETWORK INC NEW FINANCING IS ARRANGED FOR SIGNIFICANT EXPANSION' PAGING NETWORK INC DALLAS SAID IT OBTAINED A NEW REVOLVING CREDIT LINE OF UP TO 450 MILLION TO FINANCE A SIGNIFICANT EXPANSION PROGRAM THE COMPANY WHICH PROVIDES PAGING SERVICES SAID IT PLANS TO USE THE LOAN PROCEEDS TO FINANCE AN EXPANSION OF ITS TRANSMISSION SYSTEM TO COVER 70 OF THE COUNTRY'S POPULATION UP FROM 65 CURRENTLY THE CREDIT LINE REPLACES A PREVIOUS LINE OF UP TO 200 MILLION THE COMPANY SAID PAGING NETWORK SAID THE 19 LENDERS INCLUDE BANK OF BOSTON CORP'S FIRST NATIONAL BANK OF BOSTON NATIONSBANK CORP AND TORONTO DOMINION BANK 9304190096 930419 INTERNATIONAL WORLD WIRE COMPILED BY LINDA D BOHRER ASIAN ECONOMIC EXPANSION OUTSIDE JAPAN WILL FAR OUTPACE THAT OF THE INDUSTRIALIZED WORLD IN THE NEXT FEW YEARS THE ASIAN DEVELOPMENT BANK PREDICTED IN A REPORT WITHIN THE REGION ECONOMIC EXPANSION IN MAINLAND CHINA WILL OUTPACE THE REST OF ASIA BUT ITS GROWTH PROSPECTS ARE LESS ROBUST THAN IN 1992 THE ADB SAID AND INFLATION WILL TAKE A BIGGER BITE THE WORLD'S INDUSTRIALIZED COUNTRIES INCLUDING JAPAN WILL PROBABLY SEE OVERALL GROWTH BELOW 2 IN 1993 AS THE RECOVERY SPREADS GROWTH COULD ACCELERATE TO 27 IN 1994 THE ASIAPACIFIC REGION MEANWHILE WILL MAINTAIN ITS ECONOMIC HEALTH WITH A 7 AVERAGE GROWTH RATE IN 1993 AND 1994 THE REPORT SAID DESPITE NOTING THAT THE WORLD TRADING SYSTEM IS THREATENED BY A PROTECTIONIST SPIRIT THE ADB TRIED TO EASE WORRIES OVER THE NORTH AMERICAN FREE TRADE AGREEMENT IN A SPECIAL SECTION ON NAFTA THE ADB SAID MORE RAPID INCOME GROWTH AS A RESULT OF THE AGREEMENT COULD GENERATE GREATER DEMAND FOR IMPORTS INCLUDING FROM THE ADB'S DEVELOPINGCOUNTRY MEMBERS SOUTH KOREA'S POONGSAN CORP SAID ITS AMERICAN UNIT PMX INDUSTRIAL INC HAS WON AN 8 MILLION CONTRACT TO PROVIDE COIN BLANKS FOR THE US MINTS IN DENVER AND PHILADELPHIA PMX INDUSTRIAL WILL PROVIDE 7500 TONS OF CUPRONICKEL STRIPS AND CLAD METAL STRIPS FOR COINS THIS IS THE FIRST TIME IN 30 YEARS A COMPANY OUTSIDE THE US HAS WON A CONTRACT TO SUPPLY THE COIN BLANKS BREAKING THE NEARMONOPOLY OF OLIN CORP OF STAMFORD CONN THE NUMBER OF JAPANESE CORPORATE FAILURES WITH LIABILITIES OF 10 MILLION YEN 88417 OR MORE INCREASED 227 IN FISCAL 1992 FROM THE YEAR BEFORE TO 14441 BUT COMBINED LIABILITIES FELL 42 TO 74457 BILLION YEN 6583 BILLION TEIKOKU DATABANK SAID THE NUMBER OF BANKRUPTCIES TOPPED 10000 FOR THE SECOND CONSECUTIVE YEAR AND TOTAL DEBT WAS THE SECONDBIGGEST EVER SURPASSING SEVEN TRILLION YEN FOR THE SECOND YEAR IN A ROW THE CREDIT RESEARCH AGENCY SAID THE NUMBER OF COMPANIES THAT WENT UNDER GREW IN ALL SECTORS GERMAN FINANCE MINISTER GUENTER REXRODT SAID IT IS A PESSIMISTIC POSSIBILITY THAT WESTERN GERMAN GROSS DOMESTIC PRODUCT COULD SHRINK BY 2 THIS YEAR MR GUENTER SAID HE STANDS BY MINISTRY FORECASTS THAT SEE GDP SHRINKING BY ONLY UP TO 1 THIS YEAR BUT ADMITTED THAT THE ECONOMY MAY BE WEAKER THAN OFFICIAL FORECASTS THE FINANCE MINISTER SAID HE HOPES INCREASED ACTIVITY IN THE SECOND HALF OF THE YEAR WILL STABILIZE THE REGION'S GDP A HOSTILE AUDIENCE OF STATE FACTORY DIRECTORS JEERED RUSSIAN PRESIDENT BORIS YELTSIN FRIDAY WHEN HE TOLD THEM HIS ECONOMIC POLICIES WERE BRINGING INFLATION UNDER CONTROL MR YELTSIN WAS INTERRUPTED BY LAUGHTER THREE TIMES DURING HIS SPEECH TO NEARLY 5000 RUSSIAN BUSINESS LEADERS IN THE KREMLIN'S PALACE OF CONGRESSES WHERE SOVIET LEADERS ONCE DICTATED POLICY IN AN ATMOSPHERE OF STRICT DISCIPLINE THE AUDIENCE CONSISTED OF MOSTLY FORMER COMMUNISTS WHO STAND TO LOSE POWER MONEY AND PRIVILEGES IF MR YELTSIN WINS AN APRIL 25 VOTE OF CONFIDENCE AND ACCELERATES HIS DRIVE TO PRIVATIZE STATE FACTORIES THE HUNGARIAN CABINET APPROVED IN PRINCIPLE A PLAN TO ACCELERATE THE PRIVATIZATION PROCESS AS WELL AS BOOST SHAREBUYING BY CITIZENS DETAILS ARE TO BE WORKED OUT BY THE STATE PROPERTY AGENCY BY JUNE 30 THE SMALL INVESTOR SHARE PURCHASE PROGRAM WOULD MAKE PRIVATIZATION LOANS AVAILABLE TO CITIZENS WHO HAVE PAID A 1000 FORINT 1166 REGISTRATION FEE TO BUY SHARES IN STATEOWNED COMPANIES THE GOVERNMENT EXPECTS ONE MILLION HUNGARIANS WOULD BECOME SHAREHOLDERS UNDER THE PLAN MTIECONEWS REPORTED IMPLEMENTATION OF THE PLAN WOULDN'T BEGIN UNTIL 1994 A SURPRISING UPTICK IN BRITISH INFLATION LAST MONTH TRIGGERED FRESH FEARS ABOUT PRICES SOME ECONOMISTS NOW EXPECT CHANCELLOR OF THE EXCHEQUER NORMAN LAMONT'S UNDERLYING INFLATION TARGET RANGE OF 1 TO 4 TO BE BREACHED AS EARLY AS OCTOBER THE DATA SHOW THAT PRICES AS MEASURED BY THE RETAIL PRICE INDEX ROSE BY 04 DURING MARCH AND WERE UP 19 FROM A YEAR BEFORE THIS COMPARED WITH FEBRUARY'S YEARONYEAR RISE OF 18 AND FORECASTS OF 17 IN MARCH SOME ECONOMISTS EXPECT THE GOVERNMENT'S REPLACEMENT OF ITS HIGHLY UNPOPULAR COMMUNITY TAX WITH A SLIGHTLY CHEAPER COUNCIL TAX WILL HELP BRING OVERALL INFLATION BACK DOWN TO 16 IN APRIL HOWEVER BY ABOUT JUNE INFLATION IS EXPECTED TO START CLIMBING SHARPLY ECONOMISTS SAID THE UPTURN IN THE ECONOMY AND THE FRESH INFLATIONARY PRESSURES WILL PROBABLY ENSURE THAT THE GOVERNMENT DOESN'T CUT BANK BASE RATES AGAIN THUS THERE IS LITTLE CHANCE THE OVERALL INFLATION RATE WILL BENEFIT FROM ANOTHER CUT IN MORTGAGE RATES THE SECRETARY GENERAL OF JAPAN'S RULING LIBERAL DEMOCRATIC PARTY SPEAKING AT A LUNCHEON SAID JAPANESE WOMEN SHOULD HAVE AT LEAST THREE CHILDREN ARGUING THAT THE RESULTING SIBLING RIVALRY FOSTERS A COMPETITIVE SPIRIT THAT'S GOOD FOR FREEMARKET ECONOMIES FRENCH LABOR MINISTER MICHEL GIRAUD SAID HE EXPECTS 150000200000 MORE JOB SEEKERS TO JOIN HIS COUNTRY'S UNEMPLOYED IN 1993 9304190095 930419 BUSINESS BRIEF MITSUKOSHI LTD EARNINGS OUTLOOK IS REVISED TO SHOW PRETAX LOSS IN YEAR DEPARTMENT STORE CONCERN MITSUKOSHI LTD LOWERED ITS FORECASTS FOR CONSOLIDATED EARNINGS FOR THE YEAR ENDED FEB 28 1993 CHANGING ITS OUTLOOK FOR PRETAX RESULTS TO A LOSS MITSUKOSHI BASED IN TOKYO BLAMED WORSETHANEXPECTED CONDITIONS IN THE DEPARTMENT STORE INDUSTRY A TIME WHEN THE NATION'S RETAIL SALES REMAIN SLUGGISH AMID THE ECONOMY'S PROTRACTED SLOWDOWN MITSUKOSHI NOW FORECASTS A 56 BILLION YEN 499 MILLION PRETAX LOSS COMPARED WITH THE PREVIOUS FORECAST OF A 6 BILLION PRETAX PROFIT SALES ARE EXPECTED TO BE 1081 TRILLION YEN DOWN 72 FROM THE PREVIOUS FORECAST OF 1165 TRILLION YEN 9304190094 930406 HARD WORK ONCE AS AMERICAN AS APPLE PIE BY LYNNE CHENEY MANY IDEAS CENTRAL TO AMERICAN LIFE CONCEPTS LIKE FREEDOM JUSTICE AND EQUALITY OF OPPORTUNITY OCCUR IN OUR FOUNDING DOCUMENTS BUT OTHERS ARE EMBEDDED IN OUR FOLKLORE MYTHS AND LEGENDS SO THAT CHILDREN MIGHT ESTEEM HARD WORK FOR EXAMPLE WE GIVE THEM STORIES ILLUSTRATING ITS WORTHINESS OR AT LEAST WE DID UNTIL RECENTLY LIKE MANY OTHER TRADITIONAL VALUES HARD WORK IS NOW COMING UNDER ATTACK IN HIS BOOK THE RADICALISM OF THE AMERICAN REVOLUTION THE HISTORIAN GORDON WOOD MAKES CLEAR THAT HARD WORK WAS AN IMPORTANT PART OF THE AMERICAN CREED FROM THE NATION'S BEGINNING HE POINTS OUT THAT PARSON WEEMS ONE OF OUR MOST EFFECTIVE MYTH MAKERS GAVE US NOT ONLY GEORGE WASHINGTON THE CHILD WHO COULD NOT LIE BUT ALSO GEORGE WASHINGTON THE MAN WHO WORKED FROM DAWN TO DUSK NEITHER HIMSELF NOR ANY ABOUT HIM WROTE PARSON WEEMS WERE ALLOWED TO EAT THE BREAD OF IDLENESS THE EARLIEST IMMIGRANTS NOTED HOW CENTRAL THE IDEA OF HARD WORK WAS TO AMERICA JEAN DE CREVECOEUR WROTE IN 1782 WE ARE ALL ANIMATED WITH THE SPIRIT OF AN INDUSTRY WHICH IS UNFETTERED AND UNRESTRAINED FOREIGN VISITORS COMMENTED ON OUR INDUSTRIOUSNESS TOCQUEVILLE WROTE THAT IN AMERICA TO WORK IS THE NECESSARY NATURAL AND HONEST CONDITION OF ALL MEN THE AMERICAN IDEA THAT HARD WORK WAS TO BE ESTEEMED DISTINGUISHED US FROM EUROPEANS WHO ADMIRED THEIR GENTLEMEN OF LEISURE FOR US HARD WORK RATHER THAN IDLENESS WAS THE WAY TO DISTINCTION IN RECENT YEARS HOWEVER THE MESSAGE ABOUT HARD WORK HAS BECOME DECIDEDLY MIXED CAUGHT UP IN THE RELATIVISM THAT NOW CHARACTERIZES SO MUCH OF AMERICAN LIFE THE IDEA OF HARD WORK IS CONSIDERED BY MANY TO BE ANOTHER OF THOSE NOTIONS THAT THE DOMINANT FORCES IN OUR SOCIETY IE WHITE MALES IMPOSE ON THE REST OF US IT MERELY ADVANCES WHITEMALE INTERESTS AS ANY WOMAN OR MINORITY FOOLISH ENOUGH TO BUY INTO THE DOMINANT VALUE SYSTEM WILL FIND OUT THIS VIEW IS BEING ADVANCED NOT JUST IN ACADEMIC JOURNALS AND CONFERENCES BUT ALSO IN CLASSROOMS RITA KRAMER IN HER BOOK ED SCHOOL FOLLIES DESCRIBES A PROFESSOR AT A MIDWESTERN TEACHERS COLLEGE WHO TELLS HER STUDENTS THAT THEY NEED TO CORRECT THE MORAL OF SUCH ELEMENTARY SCHOOL CLASSICS AS TOOTLE THE TRAIN THIS IS A STORY ABOUT A TALENTED BUT EASILY DISTRACTED YOUNG TRAIN WHO ONE DAY DECIDES TO PUT HIS MIND TO HIS TRAIN WORK AND BECOMES ONE OF THE COUNTRY'S MOST FAMOUS FLYERS AS THE PROFESSOR SEES IT THIS IS A DANGEROUS STORY BECAUSE IT TEACHES WORK HARD AND YOU'LL MAKE IT AS THE PROFESSOR SEES IT WE LIVE IN A CLOSED SOCIETY AND WE ARE SIMPLY FOOLING CHILDREN IF WE TEACH THEM ABOUT A MERITOCRACY OF WORK TO CITE ANOTHER EXAMPLE REREADING AMERICA IS A WIDELY USED READER FOR TEACHING FRESHMAN ENGLISH IT IS ASSIGNED AT SUCH PRIVATE UNIVERSITIES AS DUKE AND EMORY AS WELL AS AT SUCH PUBLIC INSTITUTIONS AS THE CITY UNIVERSITY OF NEW YORK AND NORTHERN VIRGINIA COMMUNITY COLLEGE ESSAY AFTER ESSAY IN THIS ANTHOLOGY MAKES THE CASE THAT THE MYTH OF INDIVIDUAL OPPORTUNITY IS ONE OF THE TRAPS THAT WHITE MALES HAVE LAID FOR THE REST OF US A TRANSFORMATIVE FEMINIST SEES WOMEN BETRAYING THEIR COMMITMENT TO NURTURING AS THEY ADAPT TO THE REALITIES OF THE MASCULINE MARKETPLACE A MEXICANAMERICAN CLAIMS THAT THE AMERICAN DREAM IS GOVERNED NOT BY EDUCATION OPPORTUNITY AND HARD WORK BUT BY POWER AND FEAR ANOTHER ESSAY ARGUES THAT CLASS STANDING AND CONSEQUENTLY LIFE CHANCES ARE LARGELY DETERMINED AT BIRTH A SCENARIO THAT MAKES IT USELESS TO WORK HARD TO GET AHEAD WE DO OF COURSE WANT YOUNG PEOPLE TO DEVELOP THEIR CRITICAL CAPACITIES TO EXAMINE THE IDEAS ON WHICH OUR SOCIETY HAS BEEN BUILT BUT THEY SHOULD ALSO LEARN ABOUT MEN AND WOMEN WHO HAVE TAKEN ADVANTAGE OF OUR SOCIETY'S UNPARALLELED SOCIAL MOBILITY AND HAVE SUCCEEDED THROUGH HARD WORK AND DETERMINATION IF STUDENTS ONLY HEAR THAT HARD WORK IS FOR FOOLS AND DUPES SOONER OR LATER THEY ARE LIKELY TO ACCEPT THAT IDEA UNCRITICALLY INDEED MANY ALREADY HAVE IN OUR INNER CITIES BLACK YOUNGSTERS WHO TRY TO WORK HARD AND ACHIEVE ARE RIDICULED AND ACCUSED OF ACTING WHITE BY THEIR PEERS IN THE SUBURBS STUDENTS FROM MORE AFFLUENT BACKGROUNDS ACT AS THOUGH THEIR LIVES WILL BE PRIVILEGED WHETHER THEY WORK HARD OR NOT PATRICK WELSH A HIGH SCHOOL TEACHER IN ALEXANDRIA VA WRITES ABOUT ONE OF HIS BRIGHTEST STUDENTS WHO SAYS IT'S COOL TO WING IT TO DO THE LEAST WORK POSSIBLE AND GET AWAY WITH IT ANOTHER GOOD STUDENT TELLS MR WELSH IT'S THE AMERICAN WAY TO GET THE BEST RESULTS WITH THE LEAST AMOUNT OF ENERGY EXPENDED IN A RECENT CROSSNATIONAL SURVEY HIGHSCHOOL STUDENTS IN THE US AND JAPAN WERE ASKED TO RANK FACTORS THAT CONTRIBUTED TO SUCCESS IN THE CLASSROOM OF THE JAPANESE STUDENTS 72 LISTED HARD WORK AS NUMBER ONE ONLY 27 OF THE AMERICAN STUDENTS PUT HARD WORK FIRST NO DOUBT MANY FACTORS CONTRIBUTE TO THE DEVALUING OF HARD WORK THINKING THAT SELFESTEEM IS CRUCIAL MANY PARENTS AND TEACHERS HESITATE TO POINT OUT ANY STUDENT FAILING EVEN LAZINESS AMERICANS PLACE AN UNUSUALLY HIGH VALUE ON THE IDEA OF INNATE ABILITY AND EMPHASIZING APTITUDE INEVITABLY DEEMPHASIZES THE ROLE THAT HARD WORK PLAYS IN SUCCESS BUT IF OUR STUDENTS FAIL TO SEE THAT HARD WORK MATTERS IT IS ALSO BECAUSE TIME AND AGAIN WE ARE TELLING THEM THAT IT DOESN'T IF WE WANT THEM TO WORK HARD WE WILL HAVE TO EXPLAIN TO THEM WHY THEY SHOULD AND WHILE WE ARE AT IT WE SHOULD MAKE THE LARGER ARGUMENT THAT THERE ARE MANY IDEAS TO WHICH WE CAN ALL SUBSCRIBE THE NOTION THAT VALUES CANNOT TRANSCEND CLASS RACE AND GENDER UNDERCUTS MORE THAN THE IDEA OF HARD WORK IT CALLS INTO QUESTION WHETHER THERE CAN BE AN AMERICAN CREED A PUBLIC PHILOSOPHY FOR ALL OF US MS CHENEY WHO HEADED THE NATIONAL ENDOWMENT FOR THE HUMANITIES FROM 1986 TO 1992 IS A FELLOW AT THE AMERICAN ENTERPRISE INSTITUTE SEE RELATED LETTER LETTERS TO THE EDITOR THE HARDER WE WORK THE BETTER WE FEEL WSJ APRIL 16 1993 9304060024 9304190093 930419 AEROMEXICO PURCHASE IS CLEARED MEXICO CITY AEROVIAS DE MEXICO SA DE CV SAID THE MEXICAN GOVERNMENT HAS APPROVED ITS PROPOSED ALLIANCE WITH CORPORACION MEXICANA DE AVIACION SA DE CV AEROMEXICO WILL ACQUIRE A 547 STAKE IN THE RIVAL AIRLINE AS A RESULT OF THE PLAN THE TWO CARRIERS WILL CONTINUE TO OPERATE SEPARATELY 9304190092 930419 WHO'S NEWS PFIZER CHIEF'S SALARY AND BONUS ROSE 395 IN 1992 PROXY SAYS WASHINGTON THE SALARY AND BONUS OF PFIZER INC'S CHIEF EXECUTIVE JUMPED BY 395 TO 15 MILLION IN 1992 FROM 1991 AND HAS MORE THAN DOUBLED SINCE 1990 CHIEF EXECUTIVE WILLIAM C STEERE JR WAS PAID A SALARY OF 1 MILLION AND A 500000 BONUS FOR THE YEAR ACCORDING TO PFIZER'S PROXY STATEMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IN 1991 MR STEERE RECEIVED A COMBINED SALARY AND BONUS OF 1075 MILLION IN 1990 HE MADE 691667 MR STEERE ALSO RECEIVED OPTIONS FOR 92700 COMMON SHARES EXERCISABLE AT 81 A SHARE THE FILING SAID MOST OF THE OPTIONS MAY BE EXERCISED AT A RATE OF 25 A YEAR THE PROXY SAID ASSUMING PFIZER'S STOCK VALUE RISES 5 TO 10 ANNUALLY DURING THE OPTION TERMS THE OPTIONS COULD YIELD MR STEERE FROM 472 MILLION TO 1196 MILLION IN PROFIT THE PROXY INDICATED HOWEVER PFIZER'S STOCK CLOSED FRIDAY ON THE NEW YORK STOCK EXCHANGE AT 6050 A SHARE DOWN 25 CENTS FAR BELOW THE EXERCISE PRICE OF THE OPTIONS AWARDED TO MR STEERE AND THE COMPANY'S OTHER TOP EXECUTIVES PFIZER'S STOCK PRICE LAST YEAR REACHED AS HIGH AS 87 A SHARE AND AS LOW AS 65125 IT CLOSED OUT 1992 AT 7250 BEFORE COSTS ASSOCIATED WITH THE ADOPTION OF ACCOUNTING PRINCIPLES PFIZER POSTED A 1992 NET INCOME OF 109 BILLION OR 325 A SHARE UP 51 FROM NET OF 7221 MILLION OR 213 A SHARE THE PREVIOUS YEAR PFIZER'S SALES GREW 4 TO 723 BILLION IN 1992 FROM 695 BILLION IN 1991 9304190091 930419 TECHNOLOGY & MEDICINE DIGITAL'S NEW LINE OF WORKSTATIONS MAY SET THE PACE BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL MAYNARD MASS DIGITAL EQUIPMENT CORP TOMORROW WILL UNVEIL WHAT ANALYSTS SAY ARE THE INDUSTRY'S FASTEST COMPUTER WORKSTATIONS PUTTING IT A STEP AHEAD IN THE INTENSELY COMPETITIVE 10 BILLION MARKET DIGITAL CURRENTLY RANKS THIRD IN WORKSTATION SALES BEHIND CALIFORNIA COMPETITORS SUN MICROSYSTEMS INC IN MOUNTAIN VIEW AND HEWLETTPACKARD CO IN PALO ALTO WORKSTATIONS WHICH ARE MUCH FASTER THAN PERSONAL COMPUTERS AND USE DIFFERENT OPERATING SOFTWARE ARE TYPICALLY USED BY SCIENTISTS ENGINEERS AND DESIGNERS THE NEW MODELS RANGING FROM A DESKTOP UNIT AT 4995 TO THE MOST POWERFUL AT 69995 ARE BASED ON DIGITAL'S NEW ALPHA AXP CHIP DIGITAL IS COUNTING ON ALPHA TO REVERSE ITS SLIDE IN WORKSTATIONS WHERE IT HAD LOST ITS EDGE IN RECENT YEARS PARTICULARLY TO SUN DAVID SMITH OF MARKET RESEARCHER INTERNATIONAL DATA CORP SAID THE NEW MODELS ARE VERY VERY FAST AT EXTREMELY COMPETITIVE PRICES FOR THE TIME BEING THEY'RE THE FASTEST ON THE MARKET BUT HE ALSO SAID THAT TECHNICAL LEADERSHIP IN WORKSTATIONS CAN BE FLEETING A GAME OF LEAPFROG WHERE LATER THIS YEAR WE MAY SEE SOMETHING FROM IBM OR HEWLETT THAT THEY'LL SAY IS EVEN FASTER MR SMITH ADDED HOWEVER THAT SUN LONG THE MARKET LEADER HAS FALLEN SIGNIFICANTLY BEHIND IN PERFORMANCE WITH ALPHA ANALYSTS SAY DIGITAL CAN CLAIM A TECHNOLOGY LEAD BUT ITS EDGE WON'T EASILY BE TURNED INTO SALES LEADERSHIP SUN'S INERTIA IN THE MARKET IS WORKING IN ITS FAVOR WITH DECENT SALES DESPITE A LAGGING PRODUCT WHILE DIGITAL'S INERTIA IS WORKING AGAINST IT WITH LAGGING SALES DESPITE A LEADINGEDGE PRODUCT SAID STEVEN MILUNOVICH A MORGAN STANLEY & CO ANALYST GROWTH IN THE WORKSTATION MARKET HAS SLOWED SIGNIFICANTLY IN THE PAST TWO YEARS THOUGH IT STILL IS RISING FASTER THAN THE OVERALL COMPUTER INDUSTRY IN 1992 THE MARKET GREW 99 TO 954 BILLION ACCORDING TO INTERNATIONAL DATA WHICH IS BASED IN FRAMINGHAM MASS DIGITAL'S MARKET SHARE LAST YEAR BEFORE ALPHA MODELS WERE WIDELY AVAILABLE FELL 145 IN REVENUE AND 36 IN UNITS SHIPPED THE SURVEY FOUND SUN HEWLETT AND INTERNATIONAL BUSINESS MACHINES CORP ALL GAINED SHARE LARGELY AT DIGITAL'S EXPENSE SUN'S REVENUE SHARE WAS 38 HEWLETT HAD 174 AND DIGITAL HAD 111 IBM WAS FOURTHRANKED BUT RISING FAST WITH A 7 SHARE DIGITAL'S ANNOUNCEMENT TOMORROW WILL INCLUDE WHAT IT SAYS IS THE FASTEST SINGLEPROCESSOR PERFORMANCE OF ANY MACHINE BASED AROUND A CHIP RUNNING AT 200 MEGAHERTZ BY COMPARISON THE FASTEST PC NOW OPERATES AT 66 MEGAHERTZ THE COMPANY ALSO SAYS THAT ITS 4995 AND 7880 WORKSTATIONS WILL BE THE FASTEST AVAILABLE AT THOSE PRICES WE'LL OFFER IN MOST CASES TWO TO THREE TIMES THE POWER AT EACH PRICE POINT SAID GLENN M ZIMMERMAN A DIGITAL MARKETING MANAGER DIGITAL ALSO WILL OFFER WORKSTATION FARMS IN WHICH A SERIES OF FAST WORKSTATIONS ARE CLOSELY LINKED TO WORK ON COMPLEX PROBLEMS IN PARALLEL ALLOWING USERS TO REACH SUPERCOMPUTER PROCESSING SPEED SEPARATELY DIGITAL TODAY WILL DISCLOSE A COLLABORATION WITH CONTINENTAL CABLEVISION INC OF BOSTON THE NATION'S THIRDLARGEST CABLE CONCERN TO TEST AN ALLDIGITAL VIDEO STORAGE TECHNOLOGY DESIGNED TO REPLACE VIDEOTAPE DISTRIBUTION OF ADVERTISEMENTS CURRENTLY ADS ARE PHYSICALLY DELIVERED OR CAPTURED ON TAPE THE NEW SYSTEM STORES A COMPRESSED VIDEO IMAGE ON COMPUTER DISKS SIMPLIFYING DISTRIBUTION 9304190090 930419 APACHE CORP SAYS NET IN FIRST QUARTER MORE THAN DOUBLED HOUSTON APACHE CORP EXPECTS TO REPORT THAT FIRSTQUARTER NET INCOME MORE THAN DOUBLED AND EXCEEDED ANALYSTS' EXPECTATIONS RAYMOND PLANK CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE NATURALGAS AND OIL EXPLORATION AND PRODUCTION COMPANY SAID PROFIT BETTERED ANALYSTS' CONSENSUS OF ABOUT 11 MILLION OR 21 CENTS A COMMON SHARE COMPARED WITH 4 MILLION OR NINE CENTS A SHARE A YEAR EARLIER APACHE EXPECTS TO POST A REVENUE RISE OF 15 TO 20 TO THE RANGE OF 106 MILLION TO 1106 MILLION FROM 922 MILLION IN THE FIRST QUARTER OF 1992 WHAT DRIVES IT IS THE PRICE OF GAS WHICH AVERAGED 199 PER 1000 CUBIC FEET IN THE FIRST QUARTER OF THIS YEAR COMPARED TO 147 IN 1992 MR PLANK SAID IN AN INTERVIEW APACHE'S VOLUME WAS UP TOO IN THE FIRST QUARTER PRODUCTION ROSE 6 FROM A YEAR EARLIER MR PLANK SAID APACHE'S FIRSTQUARTER CASH FLOW ROSE ABOUT 40 FROM THE YEAR BEFORE TO ROUGHLY 60 MILLION APACHE PAID OFF ITS REMAINING 47 MILLION IN BANK DEBT LAST WEEK WE PAID OFF EVERY PENNY EVEN WITH LOW INTEREST RATES IT WAS BETTER TO PAY IT OFF HE SAID THE COMPANY'S CURRENT TOTAL DEBT IS EQUAL TO 36 OF CAPITAL COMPARED WITH 54 A YEAR AGO HAVING A STRONGER BALANCE SHEET IS ENCOURAGING MR PLANK TO DRILL DEEPER MORE EXPENSIVE WELLS AND TO SHOP FOR ACQUISITIONS THAT WOULD INCREASE APACHE'S OIL AND GAS RESERVES BUT HE SAYS BARGAINS ARE SCARCE ONE AREA HE'S FOCUSING ON FOR ACQUISITIONS IS AUSTRALIA WHERE THE COMPANY HAS THREE MILLION ACRES INCLUDING OFFSHORE PROPERTIES UNDER LEASE WE NEED MORE INFRASTRUCTURE THERE TO DRILL AND PRODUCE HE SAID EARLIER THIS MONTH APACHE SAID IT DISCOVERED GAS IN A WILDCAT WELL DRILLED OFFSHORE WESTERN AUSTRALIA THE WELL FLOWED ABOUT 338 MILLION CUBIC FEET OF GAS A DAY APACHE OWNS A 20 INTEREST IN THE WELL MR PLANK SAID HE'S ALSO LOOKING AT POSSIBLE DOMESTIC ACQUISITIONS MR PLANK SAID HE EXPECTS GAS PRICES TO STAY STRONG FOR THE NEXT FEW MONTHS DESPITE REPORTS OF SOME UTILITIES AND LARGE MANUFACTURERS SWITCHING TO BURN FUEL OIL HE SAID MANY INDUSTRY SOURCES SAY THERE WON'T BE ENOUGH FUELSWITCHING TO HURT GAS PRICES UNTIL THEY RISE ABOVE 250 PER 1000 CUBIC FEET 9304190089 930419 PHARMOR WILL CUT 4122 MORE JOBS CLOSE 58 STORES BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL PHARMOR INC FORCED INTO CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS BY A 499 MILLION FRAUD ANNOUNCED A REVISED BUSINESS PLAN THAT INCLUDES SLASHING AN ADDITIONAL 4122 JOBS AND CLOSING 58 MORE STORES ONCE THE PLAN IS IMPLEMENTED CLOSELY HELD PHARMOR WILL HAVE HALF THE NUMBER OF EMPLOYEES AND STORES IT HAD WHEN IT WAS CONSIDERED A STAR IN THE DEEPDISCOUNT DRUGSTORE INDUSTRY IT ALSO EXPECTS TO RETURN TO PROFITABILITY IN FISCAL 1994 UNDER THE REVISED PLAN SUBJECT TO BANKRUPTCY COURT APPROVAL 522 SALARIED EMPLOYEES WOULD BE CUT AND 58 UNPROFITABLE STORES WHICH EMPLOY ANOTHER 3600 WORKERS CLOSED CONSEQUENTLY THE YOUNGSTOWN OHIO COMPANY WILL HAVE 13287 EMPLOYEES DOWN FROM 26274 BEFORE THE BANKRUPTCYLAW FILING AND 158 STORES DOWN FROM 310 PHARMOR WHICH LEFT THE LOS ANGELES MARKET IN AN EARLIER ROUND OF STORE CLOSINGS WILL QUIT ATLANTA AND ARIZONA LEAVING ITS CORE MARKETS IN THE MIDWEST AND SOUTHEAST ANTONIO ALVAREZ CHIEF EXECUTIVE OFFICER SAID PHARMOR WHICH HAD LOSSES OF 200 MILLION ANNUALLY WHEN THE ALLEGED FRAUD WAS UNCOVERED AND HAS SINCE HALVED ITS LOSSES COULD SEE STEADY IMPROVEMENT IN EARNINGS OVER THE NEXT FEW MONTHS AND PROFITABILITY IN THE YEAR ENDING JUNE 30 1994 I FULLY EXPECT WE'LL BE HEALTHY A LOT FASTER THAN WE WILL GET OUT OF BANKRUPTCY HE SAID WHAT WITH VARIOUS LAWSUITS AND COURT PROCEEDINGS IN RECENT MONTHS TWO FORMER PHARMOR EXECUTIVES HAVE PLEADED GUILTY TO FEDERAL CHARGES RELATING TO THE FRAUD AND A THIRD INDICTED BY A FEDERAL GRAND JURY IS AWAITING TRIAL CONSULTANTS SAID PHARMOR IS MOVING IN THE RIGHT DIRECTION BUT THE QUESTION IS WHETHER THEY CAN CUT ENOUGH COSTS TO OPERATE AT A REDUCED LEVEL OF VOLUME AND PRODUCE EARNINGS SAID SID DOOLITTLE OF MCMILLAN & DOOLITTLE A CHICAGO RETAIL CONSULTANT PHARMOR SAID VOLUMES WILL BE TWOTHIRDS OF WHAT THEY WERE PRIOR TO BANKRUPTCY PHARMOR WHICH HAS BEEN CRITICIZED FOR OVERSIZED STORES IS NEGOTIATING WITH LANDLORDS TO REDUCE REMAINING STORES TO AN AVERAGE OF 45000 SQUARE FEET FROM 60000 MR ALVAREZ SAID IT'S ALSO INSTALLING CHECKOUT SCANNERS AND PHARMACY COMPUTERS MERCHANDISING CHANGES INCLUDE UPGRADING VIDEO AND COMPACT DISK SECTIONS THE COMPANY WHICH EARLIER HALTED MOST ADVERTISING HAS RETAINED AN AD AGENCY YAFFE & CO SOUTHFIELD MICH AND PLANS TO RESUME RADIO AND TELEVISION ADS IN THE NEXT TWO MONTHS DESPITE THE OVERHAUL PHARMOR REMAINS COMMITTED TO ITS LOWCOST TRADITION NEGOTIATING SPECIAL PRICE DEALS WITH MANUFACTURERS AND PASSING SAVINGS ON TO CUSTOMERS MR ALVAREZ SAID PRICE INCREASES AREN'T EXPECTED OUR PLAN IS TO BECOME THE LOWCOST OPERATOR AND CONTINUE TO OFFER LOW PRICES HE SAID SINCE FILING FOR BANKRUPTCY PROTECTION LAST AUGUST PHARMOR HAS INCREASED ITS CASH POSITION TO 208 MILLION FROM 50 MILLION 9304190088 930419 INTERNATIONAL CLINTON PUSHES JAPAN TO BOOST SPENDING BUT TOKYO OFFICIALS SAY NO THANKS' BY JOHN BUSSEY AND CLAY CHANDLER STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO WHEN THE CLINTON ADMINISTRATION CAME TO TOWN LAST WEEK IT HAD SOME SIMPLE ADVICE FOR JAPAN'S GOVERNMENT ON HOW IT SHOULD REVIVE THE NATION'S SLUMPING ECONOMY SPEND SPEND SPEND JAPAN'S POLICY MAKERS LISTENED POLITELY NODDED AND WHEN THE AMERICANS HAD LEFT ROLLED THEIR EYES OUR FEELING IS THANK YOU VERY MUCH BUT PLEASE MIND YOUR OWN BUSINESS' SAYS ONE TOP MINISTRY OF FINANCE OFFICIAL DON'T YOU THINK THERE ARE ENOUGH PROBLEMS WITH AMERICA'S BUDGET WITHOUT TELLING US WHAT'S WRONG WITH OURS AT ISSUE IS THE RECORDLARGE EMERGENCY PUBLIC SPENDING PACKAGE JAPAN ANNOUNCED LAST WEEK JAPAN HOPES THE 132 TRILLION YEN 1167 BILLION PROGRAM WILL JUMPSTART THE NATION'S MORIBUND ECONOMY BUT CLEARLY US TREASURY AND STATE DEPARTMENT OFFICIALS WHO CAME TO TOKYO LAST WEEK FOR A MEETING OF THE GROUP OF SEVEN INDUSTRIALIZED NATIONS APPEARED DISAPPOINTED THAT THE PACKAGE WASN'T BIGGER THE AMERICANS CALLED IT MERELY A FIRST STEP AND INDICATED THEY EXPECT JAPAN TO SPEND MUCH MORE OVER THE NEXT FEW YEARS THEIR WORRY THAT THE EMERGENCY PACKAGE WON'T REALLY FIRE THE ECONOMY THAT IT WON'T CREATE ENOUGH DOMESTIC DEMAND TO SUCK IN MORE IMPORTS FROM THE US AND THAT IT THEREFORE WON'T REDUCE JAPAN'S TRADE SURPLUS YET THE ODD SCENE OF THE US WITH ITS CRIPPLING NATIONAL DEBT TELLING JAPAN THE G7 NATION WITH THE HEALTHIEST BALANCE SHEET TO BE MORE LIKE US WASN'T LOST ON THE JAPANESE MANY WERE STILL SHAKING THEIR HEADS LONG AFTER TREASURY SECRETARY LLOYD BENTSEN'S PLANE CLEARED JAPAN'S AIRSPACE I THINK THERE IS A GENUINE FEELING AMONG OUR PEOPLE THAT WE HAVE DONE THE MAXIMUM WE CAN DO SAYS ONE FOREIGN MINISTRY OFFICIAL ADDS KAZUO NUKAZAWA OF JAPAN'S BUSINESS ORGANIZATION KEIDANREN THE AMERICAN OFFICIALS REPRESENT AMERICAN INTERESTS GLOBAL ECONOMIC EXPANSION SO IT'S ONLY NATURAL THAT THEY WANT AN EXPANSION IN SPENDING BY JAPAN AND GERMANY OUR INTEREST IS TO REDUCE THE BURDEN FOR POSTERITY FOR OUR SONS AND DAUGHTERS AND GRANDSONS AND GRANDDAUGHTERS WHO WOULD BE PAYING BACK THE DEFICIT WHAT SCARES THE JAPANESE IS THAT THE US TOO OFTEN PRACTICES WHAT IT PREACHESSPENDING WITH ABANDON MONEY IT DOESN'T HAVE DEFICIT SPENDING TERRIFIES JAPAN'S NERVOUS MINISTRY OF FINANCE WHICH SEES ITSELF AS A LAST LINE OF DEFENSE AGAINST A NATIONAL POLITICAL SYSTEM GIVEN TO PORKBARREL SPENDING AS RECENTLY AS THE LATE 1970S POLITICIANS PANICKED BY RECESSION ADOPTED THE AMERICAN WAY SPENDING LUSTILY TO STIMULATE THE ECONOMY AND PILING UP A HUGE DEBT BURDEN IN THE PROCESS FOR 15 YEARS UNTIL 1990 JAPAN HAD TO ISSUE DEFICIT BONDS JAPAN'S POLICY MAKERS ARE LOATH TO GO DOWN THAT ROAD AGAIN CONSIDER OUR RECORD OVER THE LAST 20 YEARS SAYS EISUKE SAKAKIBARA DEPUTY DIRECTOR GENERAL OF THE FINANCE MINISTRY'S INTERNATIONAL FINANCE BUREAU WE HAVE DONE MUCH BETTER THAN THE US ONE OR TWO YEARS FROM NOW LET'S COMPARE AGAIN WHO WILL HAVE THE STRONGER ECONOMY THE MORE BALANCED BUDGET I DON'T WANT TO SOUND ARROGANT BUT THE LIKELIHOOD IS THAT IT WILL BE JAPAN JAPANESE POLICY MAKERS ALSO INSIST THAT THE US IS IN NO POSITION TO CAST STONES JAPAN'S FISCAL STIMULUS PROGRAM IS MUCH LARGER THAN THE ONE PROPOSED BY PRESIDENT CLINTON FOR THE US ECONOMY IN ABSOLUTE TERMS AND AS A PERCENTAGE OF GROSS NATIONAL PRODUCT WE ARE DOING SOMETHING AND SOMETHING QUITE SUBSTANTIAL SAYS MR SAKAKIBARA TO SAY OTHERWISE IS PRESUMPTUOUS THAT SAID SOME FINANCE MINISTRY OFFICIALS ACKNOWLEDGE IN PRIVATE THAT THE AMERICANS HAVE RAISED SOME LEGITIMATE DOUBTS ABOUT THE PACKAGE FIRST THE MUCHBALLYHOOED STIMULUS PROGRAM FOLLOWS PASSAGE THIS YEAR OF AN UNUSUALLY MODEST TOTAL NATIONAL BUDGET SOME WESTERN ECONOMISTS BELIEVE MONEY THAT COULD HAVE BEEN PART OF JAPAN'S REGULAR BUDGET WAS SIMPLY SHIFTED TO THE EMERGENCY PACKAGE THUS MAKING THE LATTER SEEM ALL THE MORE GENEROUS SECOND JAPAN'S OFFICIAL LINE IS THAT ALL 132 TRILLION YEN IN THE PROGRAM IS BONA FIDE FISCAL STIMULUS SOME ECONOMISTS HOWEVER BELIEVE THE REAL AMOUNT OF NEW MONEY MINUS CREATIVE ACCOUNTING IS PROBABLY CLOSER TO AROUND SEVEN TRILLION YEN THOUGH THEY SAY THIS SPENDING SHOULD NONETHELESS ALLOW JAPAN TO REACH A GROWTH RATE OF ROUGHLY 2 BY THE END OF THE FISCAL YEAR MARCH 31 1994 THE GOVERNMENT'S OFFICIAL FORECAST IS 33 GROWTH JAPAN'S BUREAUCRATS THEMSELVES WILL TELL YOU THE NATION'S ARCHAIC PUBLIC ACCOUNTING METHODS INHERITED FROM PRACTICES ADOPTED DURING THE 1800S ARE HOPELESSLY MISLEADING BUT THAT'S JUST THE WAY THE FINANCE MINISTRY LIKES IT MUDDLED BUDGET CONCEPTS MAKE IT EASIER TO CONVINCE JAPAN'S POLITICIANS AND THE PUBLIC THAT GOVERNMENT SPENDING PROGRAMS ARE PULLING OUT ALL THE STOPS WHEN IN FACT THEY'RE ONLY UNCORKING ONE OR TWO AND THAT HELPS THE MINISTRY KEEP THE POLITICIANS IN CHECK IN YOUR COUNTRY YOU AT LEAST HAVE POLITICIANS IN CONGRESS WHO ARE FISCAL CONSERVATIVES SAYS ONE MINISTRY OFFICIAL BUT HERE WE DON'T HAVE ANY EVERY POLITICIAN WANTS TO SPEND AND SPEND NO ONE CARES ABOUT THE CONSEQUENCES 9304190087 930419 BUSINESS BRIEF EXXON CORP AUSTRALIAN UNIT TO PROCEED WITH PROJECT IN BASS STRAIT ESSO AUSTRALIA LTD A UNIT OF EXXON CORP SAID IT DECIDED TO PROCEED WITH A 600 MILLION AUSTRALIAN DOLLAR US4326 MILLION OIL PROJECT IN BASS STRAIT OFF AUSTRALIA'S SOUTH COAST ESSO PRODUCES OIL AND GAS FROM SEVERAL FIELDS IN BASS STRAIT IN A JOINT VENTURE WITH AUSTRALIA'S BROKEN HILL PROPRIETARY CO THE COMPANIES PLAN TO BRING THE WEST TUNA FIELD INTO PRODUCTION IN LATE 1995 FOLLOWING CONSTRUCTION OF AN OIL AND GAS PRODUCTION PLATFORM THE FIRMS BELIEVE THAT THE WEST TUNA FIELD HOLDS RESERVES OF 86 MILLION BARRELS OF OIL WITH PRODUCTION FROM THE NEW PLATFORM EXPECTED TO REACH 30000 BARRELS A DAY AT ITS PEAK AN ESSO SPOKESMAN SAID CONSTRUCTION OF THE NEW PLATFORM WILL BEGIN IN SEPTEMBER AND TAKE TWO YEARS TO COMPLETE THE NEW PLATFORM THE SECOND ON THE TUNA FIELD IS EXPECTED TO PRODUCE OIL FOR SIX YEARS WITH THE CRUDE SENT TO SHORE USING A PIPELINE ALREADY IN PLACE AT THE FIRST TUNA OIL RIG 9304190086 930419 COMPANIES' PAYMENT OF BILLS WAS SLOWER IN EUROPE LAST YEAR NEW YORK EUROPEAN BUSINESSES ARE STILL HURTING FROM THE RECESSION AS EVIDENCED BY THEIR SLOWER BILLPAYING IN 1992 ACCORDING TO A SURVEY BY DUN & BRADSTREET CORP ONLY BUSINESSES IN BRITAIN WERE PAYING QUICKER OR AT THE SAME RATE AS A YEAR BEFORE SAID DUN & BRADSTREET INFORMATION SERVICES SUBSIDIARY THE D&B SUBSIDARY THAT CONDUCTS THE SURVEY AFTER IMPROVING SLOWLY DURING THE FIRST HALF OF 1992 THE PAYMENT PERFORMANCE INDEX FELL FROM SEPTEMBER TO THE END OF THE YEAR IN BELGIUM FRANCE ITALY AND THE NETHERLANDS IN GERMANY THE INDEX WAS VIRTUALLY UNCHANGED FOR THE SECOND HALF OF THE YEAR AT A LOW LEVEL OF NEGATIVE 102 THE COMPOSITE INDEX FOR THE EUROPEAN COUNTRIES EXCLUDING BRITAIN DETERIORATED IN THE LAST FEW MONTHS TO END 1992 AT NEGATIVE 90 WITH BRITAIN THE INDEX WAS NEGATIVE 57 THE INDEX REPRESENTS THE PERCENTAGE OF SURVEYED COMPANIES THAT REPORTED PAYING THEIR BILLS QUICKER MINUS THOSE PAYING SLOWER THE SERIOUS RECESSION THROUGHOUT EUROPE IS REFLECTED IN THE INDEX SAID DAVID T KRESGE VICE PRESIDENT ANALYTICAL SERVICES FOR DUN & BRADSTREET INFORMATION SERVICES TO CONSERVE CASH IN THE FACE OF DECLINING SALES FIRMS ARE SLOWING THEIR PAYMENT OF BILLS IN BRITAIN DESPITE A PROLONGED SEVERE RECESSION BUSINESSES SHOWED SIGNIFICANT IMPROVEMENT IN BILLPAYING IN THE FOURTH QUARTER D&B SAID THE INDEX FOR BRITISH COMPANIES TURNED UP SHARPLY IN OCTOBER AND BECAME POSITIVE AND REMAINED POSITIVE DESPITE A SMALL DROP IN DECEMBER D&B SAID THEY ARE AT A DIFFERENT POINT IN THEIR CYCLE COMING OUT OF THEIR SLUMP DR KRESGE SAID OF BRITAIN THE OTHER COUNTRIES ARE JUST GETTING INTO THEIRS SMALL COMPANIES THOSE WITH FEWER THAN 20 EMPLOYEES AND MEDIUMSIZE BUSINESSES 200 TO 500 EMPLOYEES IN EUROPE HAD MUCH WEAKER PERFORMANCE THAN LARGER COMPANIES ACCORDING TO D&B LARGER COMPANIES IN FACT HAD POSITIVE INDEX READINGS IN NOVEMBER AND DECEMBER THE EUROPEAN BILL PAYMENT INDEX IS BASED ON BILLPAYING RECORDS OF MORE THAN 500000 EUROPEAN COMPANIES AS REPORTED BY THEIR SUPPLIERS TO DUN & BRADSTREET 9304190085 930419 BUSINESS BRIEF HANSON PLC US AFFILIATE BUYS ASSETS OF WESTERN HOME BUILDER HANSON PLC SAID BEAZER HOMES INC AN AFFILIATE OF ITS US ARM HANSON INDUSTRIES BOUGHT 116 MILLION OF ASSETS OF WATT HOUSING CORP A HOME BUILDER IN CALIFORNIA ARIZONA AND NEVADA BEAZER HOMES BOUGHT 20 DEVELOPMENTS IN CALIFORNIA 17 IN PHOENIX ARIZ AND SEVEN IN LAS VEGAS WITH A TOTAL OF ABOUT 3800 BUILDING LOTS IN 1992 WATT HOUSING SOLD 949 HOMES VALUED AT 165 MILLION THE NET BOOK VALUE OF THE ASSETS PURCHASED BY BEAZER HOMES AS OF JAN 31 WAS 148 MILLION HANSON SAID HANSON PLC IS BASED IN LONDON ITS BEAZER HOMES LTD UNIT IS BRITAIN'S THIRDLARGEST HOME BUILDER 9304190084 930419 BUSINESS BRIEF HOME INTENSIVE CARE INC WR GRACE BID IS SWEETENED TO TOTAL OF 1122 MILLION WR GRACE & CO SAID IT SWEETENED ITS TAKEOVER BID FOR HOME INTENSIVE CARE INC TO 660 A SHARE OR 1122 MILLION THE COMPANIES SIGNED A DEFINITIVE AGREEMENT ON THE ACQUISITION IN JANUARY HOME INTENSIVE CARE'S BOARD REJECTED AS INADEQUATE AN UNSOLICITED WR GRACE OFFER OF 6 A SHARE THEN VALUED AT ABOUT 94 MILLION UNDER THE DEFINITIVE AGREEMENT GRACE WILL BEGIN A CASH TENDER OFFER FOR HOME INTENSIVE CARE'S SHARES ON APRIL 22 COMPLETION OF THE TENDER OFFER IS SUBJECT TO CUSTOMARY CONDITIONS INCLUDING REGULATORY APPROVALS BASED IN BOCA RATON FLA WR GRACE IS A SPECIALTY CHEMICALS COMPANY WITH A UNIT INVOLVED IN KIDNEY DIALYSIS SERVICES MIAMIBASED HOME INTENSIVE CARE WHICH PROVIDES HOME INFUSION THERAPY SERVICES HAS ABOUT 17 MILLION SHARES AND SHARE EQUIVALENTS OUTSTANDING UPON THE RECOMMENDATION OF A COMMITTEE OF INDEPENDENT DIRECTORS THE BOARD OF HOME INTENSIVE CARE APPROVED THE OFFER DETERMINING THAT THE PRICE IS FAIR TO ITS HOLDERS HOME INTENSIVE CARE SAID 9304190083 930419 BUSINESS BRIEF MINEBEA CO JAPANESE FIRM SAYS LOSSES TO BE WIDER THAN EXPECTED MINEBEA CO A MAKER OF BALL BEARINGS ANNOUNCED BROAD REVISIONS TO ITS FORECASTS FOR CONSOLIDATED AND UNCONSOLIDATED RESULTS DURING THE FISCAL YEAR THROUGH SEPT 30 SHOWING WIDER NET LOSSES THAN ORIGINALLY ESTIMATED ON A CONSOLIDATED BASIS IT ESTIMATED ITS NET LOSS AT 575 BILLION YEN 508 MILLION COMPARED WITH AN EARLIERESTIMATED LOSS OF 42 BILLION YEN ON AN UNCONSOLIDATED BASIS IT PUT THE LOSS AT 62 BILLION YEN COMPARED WITH AN EARLIERESTIMATED LOSS OF 47 BILLION YEN UNCONSOLIDATED RESULTS ARE THOSE OF THE PARENT ALONE CONSOLIDATED RESULTS INCLUDE THOSE OF SUBSIDIARIES IN AN OFFICIAL FILING WITH THE TOKYO STOCK EXCHANGE MINEBEA SAID THE WIDENING OF NET LOSSES AND EROSION OF PRETAX PROFITS STEM FROM CHANGING OF THE BOOK VALUE OF SECURITIES HOLDINGS TO REFLECT MARKET PRICES AT THE MARCH 31 END OF THE FISCAL HALF PREVIOUSLY THE PURCHASE PRICE OF STOCKS WAS USED THE COMPANY SAID 9304190082 930419 BUSINESS BRIEF BOMBARDIER INC GPA'S ORDER CANCELLATION TO HALT DE HAVILLAND OUTPUT BOMBARDIER INC'S DE HAVILLAND INC SUBSIDIARY SAID IT WILL HALT AIRCRAFT PRODUCTION FOR NINE WEEKS THIS SUMMER FOLLOWING AGREEMENT WITH A GPA GROUP PLC UNIT TO CANCEL ORDERS FOR 22 TURBOPROP AIRLINERS BOMBARDIER A MONTREAL TRANSPORTATIONEQUIPMENT MAKER OWNS 51 OF DE HAVILLAND THE ONTARIO GOVERNMENT OWNS 49 A DE HAVILLAND SPOKESMAN SAID THE MOVE WILL CUT 1993 PRODUCTION OF THE DASH8 AIRCRAFT TO 21 FROM 24 THE CANCELLATION ALSO SLASHES THE DOWNSVIEW ONTARIO COMPANY'S ORDER BACKLOG TO 27 FROM 49 FUTURE OPTIONS HELD BY THE GPA SUBSIDIARY GPA JETPROP WILL BE RESCHEDULED UNDER THE AGREEMENT DE HAVILLAND SAID TERMS OF THE AGREEMENT AND THE VALUE OF THE CANCELLED ORDERS WEREN'T DISCLOSED THE 50PASSENGER DASH8 MODEL ORDERED BY GPA JETPROP NORMALLY SELLS FOR ABOUT 12 MILLION ABOUT 2000 EMPLOYEES WILL BE AFFECTED BY THE EXTENDED SHUTDOWN FROM JULY 5 TO SEPT 3 DE HAVILLAND USUALLY HALTS PRODUCTION FOR THREE WEEKS DURING THE SUMMER 9304190081 930419 BUSINESS BRIEF ILVA ITALIAN FIRM SETS REVAMPING THAT INVOLVES ASSET SALES ITALIAN STEEL GROUP ILVA UNVEILED PLANS FOR A RESTRUCTURING THAT WOULD INVOLVE SOME ASSET SALES AIMED AT LOWERING DEBT THE COMPANY CONTROLLED BY STATE INDUSTRIAL HOLDING ISTITUTO PER LA RICOSTRUZIONE INDUSTRIALE OR IRI ALSO SAID CONSOLIDATED LOSSES WIDENED TO 2309 TRILLION LIRE 149 BILLION IN 1992 FROM 498 BILLION LIRE IN 1991 REVENUE WAS 10087 TRILLION LIRE IN 1992 DOWN FROM 10608 TRILLION IN 1991 ILVA SAID THE AIMS OF THE PLAN WERE A GRADUAL PRIVATIZATION OF THE SECTOR A BROAD OUTLINE SAID A NEW COMPANY WOULD BE CREATED TO TAKE CONTROL OF ILVA'S FLAT LAMINATES BUSINESS THE NEW COMPANY WOULD CONSIDER JOINT VENTURES OR SALES TO BOTH ITALIAN AND FOREIGN INVESTORS WITH THE OBJECTIVE OF REDUCING IRI'S STAKE BELOW 50 A STATEMENT SAID IN ADDITION ILVA SAID NONSTRATEGIC BUSINESSES WOULD BE HANDED OVER TO IRI'S CONTROL 9304190080 930419 BUSINESS BRIEF VOLKSWAGEN AG FIRST QUARTER'S AUTO SALES WERE DOWN 94 FROM '92 GERMANY'S LARGEST AUTO MAKER VOLKSWAGEN AG REPORTED THAT ITS FIRSTQUARTER AUTO SALES DROPPED 94 TO 793000 CARS FROM 875800 A YEAR EARLIER FOR MARCH VW SALES WERE PRACTICALLY FLAT AT 316000 CARS AGAINST 317700 IN MARCH 1992 THE MARCH TOTAL SALES FIGURES REPRESENT AN IMPROVEMENT FROM THE SHARP DECLINES IN THE FIRST TWO MONTHS LARGELY BECAUSE OF HIGHER SALES IN BRAZIL AND CHINA A VW SPOKESMAN SAID SALES FIGURES FROM INDIVIDUAL COUNTRIES HAVEN'T BEEN COMPLETED YET ON A DIVISIONBYDIVISION BASIS THE VOLKSWAGEN NAME BRAND CAR SALES FELL 54 TO 565000 IN THE FIRST QUARTER FROM 597700 A YEAR AGO SALES BY AUDI DECLINED 14 TO 95000 FROM 136700 SALES BY SEAT DROPPED 18 TO 80000 FROM 98200 BUT SALES BY SKODA ROSE 23 TO 53000 FROM 43200 9304190079 930419 BUSINESS BRIEF FIRST ALBANY COS NET INCOME DECLINED 18 IN THE FISCAL SECOND QUARTER FIRST ALBANY COS ALBANY NY SAID FISCAL SECONDQUARTER EARNINGS SLIPPED 18 PARTLY REFLECTING THE COST OF HIRING MUNICIPALFINANCE PROFESSIONALS IN SOME OF ITS OFFICES FIRST ALBANY THE PARENT OF FIRST ALBANY CORP A REGIONAL BROKERAGE AND INVESTMENT BANKING FIRM SAID NET INCOME FOR THE QUARTER ENDED MARCH 26 WAS 16 MILLION OR 45 CENTS A SHARE COMPARED WITH 19 MILLION OR 56 CENTS A SHARE A YEAR EARLIER REVENUE ROSE ALMOST 5 TO 251 MILLION FROM 239 MILLION THE COMPANY SAID EARNINGS WERE REDUCED ABOUT EIGHT CENTS A SHARE BY THE ADDITION OF THE 10 MUNICIPALFINANCE PROFESSIONALS IN ITS BOSTON AND NEW YORK OFFICES REVENUE WAS BOLSTERED BY A 51 GAIN IN INVESTMENT BANKING ACTIVITY AND STRONG LEVELS OF BROKERAGE VOLUME THE COMPANY SAID 9304190078 930419 LOS ANGELES STILL AWAITS SOCIAL ECONOMIC RENEWAL BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES IF THE SALVATION OF THIS USUALLY SUNNY CITY'S BATTERED SOUL BEGAN WITH A VERDICT READ DURING THE FOGSHROUDED HOURS OF SATURDAY MORNING ITS ECONOMIC AND SOCIAL RESTORATION APPEARS AS DISTANT AS EVER THE TOWN THAT A YEAR AGO ERUPTED IN THE WORST US URBAN VIOLENCE IN A CENTURY FACES AN ECONOMIC DOWNTURN UNPARALLELED HERE SINCE THE GREAT DEPRESSION AS WELL AS EVERWIDENING DIFFERENCES IN THE FORTUNES OF ITS RESIDENTS PERHAPS NO AMERICAN CITY HAS HURTLED SO SWIFTLY THROUGH ITS SHORT HISTORY AS LOS ANGELES SO MUCH SO THAT IT HAS BECOME A RORSCHACH TEST OF URBAN STRAIN BENEATH THE SURFACE THE NATION'S SECONDLARGEST METROPOLIS REMAINS A PLACE SCORED BY ETHNIC AND ECONOMIC LINES HOBBLED BY FRACTURED POLITICS AND SHADOWED BY A DIM VIEW OF ITS FUTURE WHILE ITS POPULATION HAS SOARED ITS INDUSTRIAL BASE HAS SHRUNK UNEMPLOYMENT LINGERED AT 104 IN THE COUNTY LAST MONTH MORE THAN THREE PERCENTAGE POINTS ABOVE THE NATIONAL AVERAGE THERE HAS BEEN SOME CHANGE FOR THE BETTER IN THE YEAR SINCE RIOTS WERE SPARKED BY THE ACQUITTAL OF FOUR WHITE POLICEMEN ON CHARGES OF BEATING BLACK MOTORIST RODNEY KING A DISORGANIZED AND STILLUNDERSTAFFED POLICE FORCE SEEMS TO BE FINDING ITS FEET UNDER NEW CHIEF WILLIE WILLIAMS EMERGENCY PLANNING HAS BY ALL APPEARANCES GREATLY IMPROVED ALTHOUGH THERE WAS NO NEED FOR ACTION THIS WEEKEND AS THE CITY REMAINED CALM IN THE WAKE OF SATURDAY'S MIXED VERDICTS AND THE MOSTLY VOLUNTEER REBUILD LA HAS SCORED SOME SUCCESSES IN ATTRACTING NEW INVESTMENT IF CALM HAS BROUGHT RELIEF TO LOS ANGELES IT ALSO HAS BROUGHT A SENSE OF REALISM THE VERDICT BY ITSELF WILL NOT CREATE MORE JOBS OR BETTER SCHOOLS CAUTIONED LOS ANGELES MAYOR TOM BRADLEY DEFENSE CUTS AND A DECLINE IN REAL ESTATE VALUES HAVE UNDERCUT LOS ANGELES'S TRADITIONAL INDUSTRIAL BASE REDUCING AEROSPACE AND CONSTRUCTION EMPLOYMENT ECONOMISTS NOW WORRY ABOUT A MISSING MIDDLE IN LOS ANGELES THE WELLPAID HOURLY WORK THAT HAS BEEN THE TRADITIONAL STEP UP FOR IMMIGRANTS AND AHEAD LIE LEGAL CROSSROADS THAT COULD SPARK MORE TROUBLE THEY INCLUDE THE TRIAL OF THREE BLACK MEN CHARGED IN THE TELEVISED BEATING OF WHITE TRUCKER REGINALD DENNY AT THE START OF THE RIOTS AND THE APPEALS AND SENTENCING OF THE TWO CONVICTED POLICEMEN MR BRADLEY WHO IS ABOUT TO RETIRE AFTER 20 YEARS AS MAYOR HAS HIMSELF BECOME A SYMBOL OF POLITICAL INDIRECTION AND INDECISION AN ISSUE THAT LOS ANGELES VOTERS WILL ADDRESS TOMORROW IN A MAYORAL ELECTION THAT IS WIDELY EXPECTED TO LEAD TO A RUNOFF BETWEEN LIBERAL ASIANAMERICAN POLITICIAN MIKE WOO AND MORE CONSERVATIVE WHITE BUSINESSMAN RICHARD RIORDAN VOTERS ALSO WILL BE ASKED TO TAX THEMSELVES ON AN ISSUE THAT THEY TELL POLLSTERS IS A TOP CONCERN CRIME A BALLOT PROPOSAL WOULD RAISE PROPERTY TAXES TO ADD 1000 POLICE TO THE CURRENTLY AUTHORIZED FORCE OF 7900 ONE OF THE SMALLEST PERCAPITA POLICE FORCES OF ANY MAJOR CITY IN AMERICA WHILE FIRE THEFT AND DEATH DURING LAST YEAR'S RIOTS WERE CONCENTRATED IN CERTAIN PARTS OF THE CITY ALMOST NO PART OF ITS COLLECTIVE PSYCHE HAS BEEN LEFT UNTOUCHED THE SHOCK OF THE RIOTS STILL REVERBERATES THROUGH THE CITY'S MUSHROOMING AND DIVERSE HISPANIC COMMUNITY FOR EXAMPLE IF YOU WALK TODAY IN PICO UNION A POOR AND PREDOMINANTLY LATINO NEIGHBORHOOD NEAR DOWNTOWN THE ONLY THING THAT IS DIFFERENT IS THAT THE SMOKE IS GONE SAYS OSCAR ANDRADE EXECUTIVE DIRECTOR OF EL RESCATE A CENTRAL AMERICAN ADVOCACY GROUP THE EMPTY LOTS ARE STILL THERE THOUGH LAST YEAR'S DISTURBANCE WAS VIEWED PRIMARILY AS A BLACKWHITE CONFLICT HISPANICS WERE AMONG THE MOST AFFECTED BOTH AS VICTIMS AND THOSE ARRESTED ON RIOTRELATED CHARGES NEARLY ONETHIRD OF THE 53 KILLED WERE OF HISPANIC DESCENT AS WERE HALF OF THOSE ARRESTED ESTIMATES OF THE PERCENTAGE OF DAMAGED BUSINESSES OWNED BY LATINOS RUN AS HIGH AS 40 IN JUST A DECADE THE RACIAL AND ETHNIC MIX OF LOS ANGELES HAS UNDERGONE A SEISMIC SHIFT WHITES WITH 53 OF THE POPULATION IN 1980 REPRESENTED JUST 41 IN THE LATEST CENSUS HISPANICS CLIMBED TO 37 FROM 28 TEN YEARS EARLIER THE ASIAN PROPORTION ROSE TO 104 FROM 6 AND THE NUMBER OF BLACKS DROPPED SLIGHTLY TO 11 FROM 12 A DECADE EARLIER SWEEPING CHANGE HAS ALREADY COME TO THE REGION'S POOR URBAN NEIGHBORHOODS FOR EXAMPLE SOUTH CENTRAL PREDOMINANTLY BLACK FOR MANY YEARS NOW HAS A POPULATION THAT IS ABOUT 45 LATINO COMPARED WITH ONLY 20 IN 1980 IN THE PAST DECADE ALONE THE REGION'S POPULATION HAS SWELLED 18 OR 14 MILLION NEW ARRIVALS ABOUT DOUBLE THE NATIONAL RATE A THIRD OF THE RESIDENTS ARE FROM OUTSIDE THE COUNTRY AND SO LITTLE ENGLISH IS SPOKEN IN NEARLY ONE IN FIVE HOUSEHOLDS THAT THEY'RE DEEMED LINGUISTICALLY ISOLATED BY CENSUS BUREAU DEFINITIONS DISAPPOINTMENT AND RUDE AWAKENING SEEM TO MARK CONVERSATIONS HERE THESE DAYS TALKS WITH LOS ANGELENOS FROM MANY PARTS OF THE CITY FIND ONCE UPBEAT RESIDENTS PENSIVE AND DOWNCAST WHAT HAS HAPPENED TO MY LOS ANGELES I WORRY THAT IT IS LOST SAYS MONICA PARKER A WRITER AND ACTRESS AS SHE HELPS PREPARE DINNER AT A FRIEND'S HOUSE MS PARKER MOVED HERE 12 YEARS AGO FROM CANADA CONVINCED THAT THIS PLACE WAS GREATER THAN ANY OTHER NOW AFTER RIOTS SMOG AND A SERIES OF JARRING EARTHQUAKES SHE CONFESSES I FIND MYSELF WORRYING ABOUT UNSTABLE LAND UNSTABLE AIR AND UNSTABLE PEOPLE THE PRESS OF NEW RESIDENTS IS PUSHING CITY COUNTY AND SCHOOL BOARD BUDGETS INTO DEFICIT POPULATION HERE GREW TWICE AS FAST AS HOUSING UNITS IN THE 1980S NEARLY ONE IN FIVE LIVING UNITS IS CONSIDERED OVERCROWDED ROUGHLY TWICE THE RATE 10 YEARS AGO AND ALMOST FIVE TIMES THE NATIONAL AVERAGE IN SOME NEIGHBORHOODS 60 OF ALL HOUSING IS CONSIDERED TO HAVE TOO MANY OCCUPANTS THOUGH THE DREAM OF A SINGLEFAMILY HOME ON A SUBDIVISION LOT PERSISTS REALITY IS DIFFERENT APARTMENT BUILDINGS ARE REPLACING BUNGALOWS LOS ANGELES IS GROWING DENSER DIVIDING LINES BETWEEN TRADITIONAL COMMUNITIES ARE BLURRING EVEN AS LINES BETWEEN ETHNIC AND LINGUISTIC GROUPS SEEM TO PROLIFERATE FOR HARRY GAMBOA SON OF A MEXICAN IMMIGRANT REALITY BEGINS WHERE MACY STEET SPANS THE NEARLY DRY GULCH OF THE LOS ANGELES RIVER THE MINUTE YOU CROSS THAT BRIDGE YOU'RE IN EAST LA SAYS MR GAMBOA A WRITER FILMMAKER AND CHRONICLER OF THE IMMIGRANT MEXICAN EXPERIENCE IN LOS ANGELES IF THERE ARE CODE WORDS FOR THE CULTURAL UNKNOWN TO MANY LOS ANGELENOS THEY ARE EAST LA WHERE MEXICAN IMMIGRANTS AND THEIR DESCENDANTS HAVE LIVED FOR DECADES HOLLYWOOD COOL DOESN'T MAKE IT OVER HERE MR GAMBOA NOTES YOU CAN LIVE HERE WITHOUT EVER SPEAKING A WORD OF ENGLISH AND HUNDREDS OF THOUSANDS OF PEOPLE HAVE BLACKS TOO FEEL A SENSE OF REMOVE THAT MIGHT ONLY INCREASE WITH THE RETIREMENT OF THE CITY'S FIRST BLACK MAYOR WITH THE LOSS OF THE TOP ELECTED SPOT WILL COME A LOSS OF POWER PRESTIGE AND SOME ECONOMIC CLOUT SAYS KERMAN MADDOX A PARTNER IN BRAGG & MADDOX A PUBLIC AFFAIRS CONSULTING FIRM WHETHER YOU LIKED TOM BRADLEY OR NOT HE WAS THE FAIRY GODFATHER FOR THE BLACK COMMUNITY HE SAYS LARGE NUMBERS OF AFRICANAMERICAN BUSINESSPEOPLE BENEFITED IN A SIGNIFICANT WAY UNDER HIS ADMINISTRATION AND I DON'T SEE THAT HAPPENING UNDER THE NEXT ADMINISTRATION STREET VIOLENCE IS A PROBLEM THAT HAS CROSSED THE RACIAL AND ETHNIC DIVIDE LAST YEAR 803 PEOPLE DIED IN GANG MURDERS ALMOST FOUR TIMES THE 1982 TOTAL WHICH WAS A LOW POINT IN THE PAST 12 YEARS THREEYEAROLD CHILDREN HAVE BEEN SHOT IN PARKS A GRANDMOTHER DIED WHEN A STRAY BULLET FROM A DRIVEBY SHOOTING BURST INTO HER KITCHEN IN ALL GANGS HAVE MURDERED MORE THAN 5000 MOSTLY THEIR OWN SINCE 1980 YET THERE ARE HOPEFUL SIGNS IN THE CITY DESPITE NUMEROUS FRUSTRATIONS AND WIDESPREAD CRITICISM REBUILD LA IS PUSHING INTO ITS SECOND YEAR WITH TOP LEADERS STILL VOICING OPTIMISM ABOUT REVITALIZING THE POORER PARTS OF LOS ANGELES THEY HAVE RECEIVED AROUND 450 MILLION IN COMMITMENTS SO FAR INCLUDING FUNDS FOR JOBTRAINING PROGRAMS AND THE CONSTRUCTION OF RETAIL OUTLETS SUCH AS GROCERY STORES NO ONE UNDERSTANDS THE IMMENSITY OF THE TASK MORE THAN ANTHONY PERRY TROLL TO BUDDIES IN THE BLOODS GANG HE MAKES NO SECRET OF A MINOR CRIMINAL PAST BUT TODAY AT 31 YEARS OLD HE IS PART OF AN AMBITIOUS MULTICITY EFFORT TO KEEP PEACE BETWEEN MURDEROUS FACTIONS OF URBAN STREET GANGS WE TEAR UP OUR NEIGHBORHOOD OURSELVES WE KILL WE DO IT DECLARES THE TALL CLEANSHAVEN MR PERRY WE CAN EITHER STOP THIS OR WE CAN DIE YOU KNOW WHAT I MEAN GREGORIO KRIKOR AXARLIAN AN ETHNIC GREEK WHO CAME TO THE US 12 YEARS AGO FROM ARGENTINA IS ANOTHER LOS ANGELENO WHO WON'T GIVE UP HE IS SPENDING HIS LAST FEW DAYS IN HIS STORE IN THE PICO UNION AREA HIS ZAPATERIA ARGENTINA HAS SERVED AS MORE THAN A SHOEREPAIR SHOP HE HAS OFFERED INCOME TAX SERVICE HELP WITH IMMIGRATION FORMS AND A VARIETY OF OTHER SERVICES BUT MR AXARLIAN'S SMALL BRICK STOREFRONT WAS SURROUNDED BY FLAMES DURING LAST YEAR'S RIOTING IT STANDS ON A BLOCK WHERE SCORCHED VACANT LOTS NOW OUTNUMBER THE GOING CONCERNS DRIVING OFF MANY OF MR AXARLIAN'S CUSTOMERS AND FORCING HIM INTO BANKRUPTCY LAST YEAR HE DID 400 TAX RETURNS THIS YEAR ONLY 50 OUTSIDE THE REMAINING STORES ARE HANDMADE SIGNS IN SPANISH AND ENGLISH MADE BY OTHER SUFFERING MERCHANTS SOMOS COMERCIANTES QUEREMOS JUSTICIA WE ARE BUSINESSMEN WE WANT JUSTICE BUT THIS WEEK THE ENTIRE STRIP OF WHAT REMAINS OF ONCETHRIVING SMALL BUSINESSES WILL BE RAZED AND THE THREEYEAROLD ZAPATERIA WILL BE A MEMORY MR AXARLIAN'S HOME IS ALREADY GONE THE VICTIM OF THE SECOND MORTGAGE THAT FINANCED HIS FLEDGLING BUSINESS THE TAXPREPARING SHOE MAKER SO FAR HAS BEEN UNABLE TO SECURE EITHER A CONVENTIONAL LOAN OR ONE FROM THE SMALL BUSINESS ADMINISTRATION STILL HE VOWS TO START OVER AND HOPES TO DO IT IN THE SAME NEIGHBORHOOD AS FOR THE TRIAL VERDICTS THEY ARE HALF ENOUGH JUSTICE HE SAYS IT'S GOOD THAT THE TWO OFFICERS WILL BE PUNISHED HE ADDS BUT THE PROBLEMS RUN DEEPER THAN THAT PEOPLE IN THIS COUNTRY ARE ALWAYS MAKING DEFINITIONS THAT SEPARATE BLACK HISPANICAMERICAN ASIAN MR AXARLIAN SAYS THAT'S WRONG WE MUST LEARN TO DO SOMETHING DIFFERENT PAULINE YOSHIHASHI CONTRIBUTED TO THIS ARTICLE 9304190077 930419 WHO'S NEWS BRODERBUND SOFTWARE INC BRODERBUND SOFTWARE INC NOVATO CALIF DAVID LIDDLE WAS NAMED A DIRECTOR OF THIS SOFTWARE PUBLISHER EXPANDING THE BOARD TO SIX MEMBERS MR LIDDLE 47 YEARS OLD IS PRESIDENT OF INTERVAL RESEARCH CORP 9304190076 930419 MARKETING & MEDIA TV ANSWER TO PROVIDE INTERACTIVE TV SERVICE TO PUBLIC BROADCASTING NEW YORK TV ANSWER HAS SIGNED UP ITS FIRST NATIONAL TELEVISION CLIENT THE PUBLIC BROADCASTING SERVICE WHICH WILL EXPLORE WAYS TO INCORPORATE THE INTERACTIVE TELEVISION TECHNOLOGY INTO ITS PROGRAMMING AND FUNDRAISING THE DEVELOPMENT DEAL WHICH WILL BE APPLIED FIRST TO BREAKS BETWEEN PBS PROGRAMS AND LATER TO EDUCATIONAL PROGRAMMING AND EVENTUALLY VIEWER PLEDGE DRIVES IS EXPECTED TO BE ANNOUNCED TODAY PRIVATELY HELD TV ANSWER RESTON VA USES WIRELESS TECHNOLOGY TO ALLOW TELEVISION VIEWERS TO TALK BACK TO THEIR TELEVISION SETS TO PLAY ALONG WITH SHOWS OR ORDER MORE INFORMATION FROM PROGRAMMERS AND ADVERTISERS SOMETIME LATER THIS YEAR THE FEDERAL COMMUNICATIONS COMMISSION IS EXPECTED TO AWARD TWO INTERACTIVE TELEVISION LICENSES IN A RESERVED PORTION OF THE RADIO SPECTRUM IN EACH OF NINE CITIES ABOUT 4000 APPLICATIONS HAVE BEEN RECEIVED FOR THE FIRST 18 LICENSES TO BE AWARDED TV ANSWER WHICH CLAIMS IT HAS VIRTUALLY NO COMPETITION IN WIRELESS INTERACTIVE TELEVISION THERE ARE SEVERAL COMPANIES USING A WIRED TECHNOLOGY WILL THEN HAVE TO CONCLUDE DEALS WITH THE LICENSEES BEFORE ITS TECHNOLOGY CAN BE PUT TO USE BY PBS FRANK REITTMAN TV ANSWER'S VICE PRESIDENT OF CONSUMER MARKETING SAID THE COMPANY EXPECTS AN INITIAL TEST WITH PBS STATIONS IN THE NINE CITIES TO BEGIN BY THE END OF THE YEAR OTHER CLIENTS WHO HAVE SIGNED UP WITH TV ANSWER INCLUDE JC PENNEY CO AND DOMINO'S PIZZA CORP 9304190075 930419 BUSINESS BRIEF MITSUI REAL ESTATE DEVELOPMENT FIRM LOWERS BY 27 FORECAST FOR PRETAX PROFIT FOR YEAR MITSUI REAL ESTATE DEVELOPMENT CO A MAJOR JAPANESE REAL ESTATE COMPANY ANNOUNCED IT IS LOWERING BY 27 ITS OFFICIAL FORECAST FOR PARENT COMPANY PRETAX PROFIT FOR THE YEAR THAT ENDED MARCH 31 PRETAX PROFIT IS NOW PROJECTED AT 257 BILLION YEN 2289 MILLION COMPARED WITH THE PREVIOUS FORECAST OF 35 BILLION YEN SALES WERE FORECAST AT 8384 BILLION YEN DOWN 68 FROM 900 BILLION YEN WHICH WAS FORECAST PREVIOUSLY MITSUI REAL ESTATE NOTED THE PRETAX PROFIT DECLINE COMES AS SALES WERE WEAKER THAN THE COMPANY HAD EXPECTED FOR THE YEAR PROPERTY SALES FELL SHORT OF EXPECTATIONS BY 48 BILLION YEN AMID SLUGGISH DEMAND FOR HIGHPRICED HOUSING AND COMMERCIAL BUILDINGS MOREOVER LEASING REVENUE WAS 7 BILLION YEN LOWER THAN EXPECTED AS MARKET CONDITIONS WORSENED FOR OFFICE BUILDINGS 9304190074 930419 FIRST CHICAGO NATIONAL CITY IMPROVE PROFITS BY JAMES C HYATT AND STUART MIEHER STAFF REPORTERS OF THE WALL STREET JOURNAL TWO LARGE REGIONAL BANKING COMPANIES REPORTED IMPROVED EARNINGS REFLECTING THE INDUSTRY'S STRONG FIRST QUARTER FIRST CHICAGO CORP EARNINGS ROSE EXCLUDING A YEAREARLIER ACCOUNTING CHANGE AND NATIONAL CITY CORP PROFIT ROSE 16 FIRST CHICAGO SAID ITS FIRSTQUARTER RESULTS WERE A RECORD AIDED BY HIGHER REVENUE LOWER PROVISIONS FOR LOAN LOSSES AND A 29 INCREASE IN NONINTEREST INCOME THE CHICAGOBASED BANKING CONCERN SAID NET INCOME TOTALED 1791 MILLION OR 197 A SHARE A YEAR EARLIER NET INCOME WAS 2948 MILLION OR 406 A SHARE INCLUDING A GAIN OF 208 MILLION OR 298 A SHARE FROM ACCOUNTING CHANGES NONINTEREST INCOME ROSE TO 4905 MILLION FROM 3796 MILLION INCLUDING A 138 RISE IN TRADING PROFITS TO 403 MILLION A 42 INCREASE IN EQUITY SECURITIES GAINS TO 1332 MILLION INCLUDING 118 MILLION FROM THE VENTURE CAPITAL PORTFOLIO AND A 36 INCREASE IN CREDIT CARD FEE REVENUE TO 1467 MILLION NET INTEREST INCOME ROSE 47 TO 2988 MILLION THE PROVISION FOR CREDIT LOSSES DECLINED 32 TO 65 MILLION FROM 95 MILLION THE ALLOWANCE FOR CREDIT LOSSES AT MARCH 31 DECLINED TO 797 MILLION FROM 897 MILLION A YEAR EARLIER ASSETS AT MARCH 31 TOTALED 485 BILLION NATIONAL CITY REPORTED FIRSTQUARTER NET INCOME OF 953 MILLION OR 113 A SHARE UP 16 FROM 821 MILLION OR 1 A SHARE A YEAR AGO NATIONAL CITY'S EARNINGS INCREASE WAS DRIVEN BY A SHARPLY LOWER PROVISION FOR LOAN LOSSES ALONG WITH HIGHER FEE INCOME AND NET INTEREST INCOME THE CLEVELAND BANK HOLDING COMPANY WHICH HAS 278 BILLION IN ASSETS SAID ITS LOANLOSS PROVISION FELL 39 TO 254 MILLION FROM 418 MILLION A YEAR EARLIER IMPROVING CREDIT QUALITY ALSO SHOWED UP IN NONPERFORMING ASSETS THAT FELL 34 TO 329 MILLION FROM 496 MILLION A YEAR EARLIER NONPERFORMING ASSETS MADE UP 18 OF LOANS AND FORECLOSED REAL ESTATE AT THE END OF THE QUARTER COMPARED WITH 26 A YEAR EARLIER BUT THE COMPANY'S LOAN PORTFOLIO SHRANK TO 186 BILLION AT MARCH 31 DOWN 3 FROM 191 BILLION A YEAR EARLIER AND OFF SLIGHTLY FROM THE YEAREND FIGURE OF 187 BILLION A SPOKESMAN BLAMED WEAK LOAN DEMAND FEE INCOME WAS 188 MILLION UP 5 FROM 179 MILLION A YEAR AGO WHILE NET INTEREST INCOME ROSE 3 TO 303 MILLION FROM 295 MILLION IN THE YEAREARLIER PERIOD ON A FULLYTAXED EQUIVALENT BASIS NONINTEREST EXPENSE ROSE 3 TO 325 MILLION FROM 315 MILLION BUT NATIONAL CITY SAID NEARLY ALL THE INCREASE RESULTED FROM AN ACQUISITION DURING THE FIRST QUARTER 9304190073 930419 CANADA PLANS FURTHER SPENDING CUTS IN ATTEMPT TO TRIM BIG BUDGET DEFICIT BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA THE CANADIAN GOVERNMENT PLANS TO ANNOUNCE FURTHER SPENDING CUTS SOON IN AN EFFORT TO REDUCE ITS BIG BUDGET DEFICIT THE SPENDING CURBS ARE TO BE THE KEY FEATURE OF WHAT FINANCE MINISTER DON MAZANKOWSKI INDICATED WILL BE AN EXCEPTIONALLY FRUGAL ELECTION YEAR BUDGET USUALLY CANADIAN GOVERNMENTS TEND TO LOOSEN THE PURSE STRINGS IN AN ELECTION YEAR BUT MR MAZANKOWSKI SAID FRIDAY THAT IN HIS BUDGET HE WILL BE CONCENTRATING ON ACTIONS THAT ENSURE WE CONTINUE TO MAKE REAL PROGRESS IN CONTROLLING SPENDING AND REDUCING THE DEFICIT THE FORTHCOMING BUDGET PROBABLY WILL BE THE LAST BEFORE THE NEXT ELECTION WHICH MUST BE HELD BY NOVEMBER MR MAZANKOWSKI WHO IS EXPECTED TO ANNOUNCE THE BUDGET DATE THIS WEEK INDICATED THAT THE MEASURES WILL FOCUS ON SPENDING CURBS RATHER THAN TAX INCREASES CANADA IS PAYING A STIFF PRICE IN FINANCIAL MARKETS BECAUSE OF THE BIG DEFICITS OF ITS FEDERAL AND PROVINCIAL GOVERNMENTS CANADIAN GOVERNMENT 10YEAR BONDS CURRENTLY YIELD ALMOST 1 1/2 PERCENTAGE POINTS MORE THAN COMPARABLE US BONDS AS LONG AS THE FEDERALPROVINCIAL DEFICITS REMAIN HIGH IT WILL BE DIFFICULT TO BRING DOWN CANADA'S HIGH REAL RATES OF INTEREST SAID EDWARD NEUFELD EXECUTIVE VICE PRESIDENT OF ROYAL BANK OF CANADA THE FEDERAL AND PROVINCIAL GOVERNMENT DEFICITS HAVE BEEN FINANCED PARTLY BY HEAVY PURCHASES OF GOVERNMENT BONDS BY FOREIGN INVESTORS PARTICULARLY US INVESTORS STATISTICS CANADA A GOVERNMENT AGENCY SAID FOREIGN INVESTORS HOLD MORE THAN A THIRD OF ALL CANADIAN BONDS OUTSTANDING TED CARMICHAEL SENIOR ECONOMIST AT THE TORONTO SECURITIES COMPANY OF BURNS FRY LTD SAID CANADA'S FEDERAL AND PROVINCIAL GOVERNMENTS ARE NOW FORCED TO CATER TO THE CONCERNS OF INTERNATIONAL BONDHOLDERS LIMITING THEIR SCOPE FOR ACTION DEFICIT REDUCTION IS STRONGLY SUPPORTED BY ALL CANDIDATES IN THE CONTEST TO SUCCEED PRIME MINISTER BRIAN MULRONEY AS HEAD OF THE PROGRESSIVE CONSERVATIVE PARTY AND LEADER OF THE GOVERNMENT CANADA HAS GOTTEN ITSELF INTO A DESPERATE CRISIS OF INDEBTEDNESS SAID PATRICK BOYER A CONSERVATIVE MEMBER OF PARLIAMENT AND LEADERSHIP CANDIDATE HE RECOMMENDED THAT THE GOVERNMENT SCRAP BIG SPENDING PROJECTS SUCH AS THE PLANNED C44 BILLION PURCHASE OF 50 HELICOPTERS FROM EH INDUSTRIES LTD JOINTLY OWNED BY AGUSTA SPA OF ITALY AND WESTLAND GROUP LTD OF BRITAIN SUCH RECOMMENDATIONS HAVE BEEN APPLAUDED BY CONSERVATIVES AT CANDIDATE MEETINGS THE NEW LEADER IS TO BE ELECTED AT A PARTY CONVENTION JUNE 13 FINANCE MINISTER MAZANKOWSKI SAID NO CHALLENGE IS MORE IMPORTANT TO OUR ECONOMIC FUTURE AND PROSPECTS OR MORE URGENT THAN SOLVING THE PROBLEM OF DEFICITS AND DEBT CANADA'S NET EXTERNAL LIABILITIES TOTAL C3013 BILLION OR 44 OF GROSS DOMESTIC PRODUCT WHICH IS THE TOTAL VALUE OF THE COUNTRY'S OUTPUT OF GOODS AND SERVICES THIS RATIO IS BY FAR THE HIGHEST AMONG MAJOR INDUSTRIAL COUNTRIES SAID BURNS FRY 9304190072 930419 EUROPE'S LEADING BANKS CHOOSING SIDES THEY PICK A FEW CROSSBORDER TIES OR CONTINENTAL SPAN BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL PARIS ASK MARC VIENOT CHAIRMAN OF FRANCE'S SOCIETE GENERALE WHAT HE PLANS TO DO IN RESPONSE TO THE CHALLENGES OF A UNIFIED EUROPEAN BANKING MARKET AND YOU WILL GET A CHARACTERISTICALLY BLUNT ANSWER NOTHING INQUIRE ABOUT SPECIFIC BUSINESS INITIATIVES HOWEVER AND YOU WILL DISCOVER THAT FRANCE'S THIRDLARGEST COMMERCIAL BANK IS CONSIDERING JOINING GERMANY'S COMMERZBANK AND SPAIN'S BANCO CENTRAL HISPANOAMERICANO IN A TECHNOLOGICAL LINKUP FOR PROCESSING CROSSBORDER PAYMENTS AS EUROPE'S LEADING BANKS FACE UP TO THE CHALLENGES OF A NASCENT SINGLE EUROPEAN MARKET THERE IS A WIDE ARRAY OF CHOICES SOME BANKS SUCH AS FRANCE'S CREDIT LYONNAIS HAVE OPTED FOR AMBITIOUS GOITALONE STRATEGIES OF EUROPEWIDE EXPANSION OTHERS ARE CONCENTRATING ON THEIR HOME BASE AND EMBARKING ONLY CAUTIOUSLY ON CROSSBORDER LINKS MR VIENOT A 64YEAROLD FORMER FINANCE MINISTRY OFFICIAL BELONGS TO THE LATTER SCHOOL HE VOTED AGAINST THE MAASTRICHT TREATY IN FRANCE'S REFERENDUM LAST SEPTEMBER AND HE OPPOSES PLANS FOR EUROPEAN MONETARY UNION BECAUSE OF THE CONSTRAINTS HE THINKS THIS WOULD CREATE FOR NATIONAL GOVERNMENTS A UNITED EUROPE MAY OR MAY NOT BE FORGED BUT IF IT IS IT WON'T BE THROUGH GRANDIOSE DECISIONS ON THE PART OF POLITICIANS MR VIENOT SAYS MR VIENOT'S CRITICAL STANCE AGAINST MONETARY UNION PUTS HIM IN A CAMP OPPOSITE ONE LED BY AMONG OTHERS DEUTSCHE BANK CHIEF EXECUTIVE HILMAR KOPPER THE GERMAN BANKER CONTENDS THAT A UNIFIED CURRENCY WILL BE NECESSARY IN ORDER TO HAVE A SUCCESSFUL UNIFIED EUROPEAN COMMUNITY BANKING MARKET WHILE THE TWO BANKERS DISAGREE ON THE ISSUE OF A SINGLE EUROPEAN CURRENCY THEY BOTH ARE FOLLOWING A TREND OF FOCUSING MORE ON DOMESTIC MARKETS THOUGH EACH FOR THEIR OWN REASONS BUT GIANT DEUTSCHE BANK THE NO 1 COMMERCIAL BANK IN GERMANY WITH SIGNIFICANT RETAIL BANKING SUBSIDIARIES IN ITALY AND SPAIN CAN AFFORD A GOITALONE INTERNATIONAL POLICY SMALLER SOCIETE GENERALE BY CONTRAST CHOOSES TO SEEK PARTNERS ABROAD TO OFFER BETTER SERVICE FOR ITS INTERNATIONAL CLIENTS IN FRANCE THUS IMPROVING ITS EFFECTIVENESS IN ITS HOME MARKET BOTH BANKS HAVE HAD TO FORM THEIR INTERNATIONAL STRATEGIES AT A TIME WHEN EUROPEAN BANKS HAVE ABANDONED COOPERATIVE CROSSBORDER ASSOCIATIONS CREATED SOME 20 YEARS AGO TO FEND OFF A PERCEIVED US AND JAPANESE THREAT EUROPEAN BANKS INTERNATIONAL COMPRISING SOCIETE GENERALE DEUTSCHE BANK AND OTHERS AND EUROPARTNERS WHICH INCLUDED COMMERZBANK CENTRAL HISPANO AND CREDIT LYONNAIS DISBANDED LAST YEAR MEMBER BANKS DISCOVERED THAT IN FACT THEY WERE COMPETING WITH EACH OTHER FAR MORE FIERCELY THAN BEFORE IN ADDITION THE CURRENT ROLLING RECESSION TOUGH COMPETITION AND A GROWING REALIZATION OF THE INHERENT DIFFERENCES BETWEEN NATIONAL BANKING MARKETS PROMPTED MANY BANKS TO CONCENTRATE ON THEIR HOME MARKETS IN HIS SIX YEARS AT THE HELM OF SOCIETE GENERALE SINCE ITS PRIVATIZATION IN 1987 MR VIENOT HAS BUILT IT INTO ONE OF FRANCE'S MOST PROFITABLE BANKS LARGELY BY IGNORING THE REST OF EUROPE AND CONCENTRATING INSTEAD ON FRANCE BY COMPARISON CREDIT LYONNAIS THE LARGEST OF FRANCE'S BIG THREE COMMERCIAL BANKS HAD A LARGE CONSOLIDATED LOSS IN 1992 WHILE AT BANQUE NATIONALE DE PARIS THE SECONDLARGEST CONSOLIDATED 1992 NET FELL 27 PART OF SOCIETE GENERALE'S RELATIVELY FAVORABLE PERFORMANCE HAS BEEN BECAUSE OF A STREAMLINING OF ITS INTERNATIONAL BRANCH NETWORK TO SAVE COSTS PARTLY THE RESULT OF MR VIENOT'S RELUCTANCE TO GET INVOLVED IN GRANDIOSE AND POTENTIALLY COSTLY PANEUROPEAN BANKING EXERCISES IN 1992 FAR FROM WIDENING ITS EUROPEAN NETWORK SOCIETE GENERALE ACTUALLY SHRANK IT BY SELLING 28 OF ITS 32 SPANISH BRANCHES THE SALE MARKED A REVERSAL OF A POLICY SPEARHEADED 15 YEARS AGO BY MR VIENOT HIMSELF WHEN HE WAS THE BANK'S GENERAL MANAGER BECAUSE OF COMPETITION FROM SPANISH BANKS HOPEDFOR PROFIT DIDN'T MATERIALIZE HE CONCEDED FOR THE FUTURE HE MADE CLEAR SOCIETE GENERALE PLANS TO FOLLOW A VERY DIFFERENT ROUTE FROM THAT OF ITS MAIN COMPETITORS WHILE CREDIT LYONNAIS HAS CHOSEN TO BUILD UP ITS OWN EUROPEWIDE BANKING NETWORK A DECISION PARTLY RESPONSIBLE FOR LAST YEAR'S COLLAPSE OF EUROPARTNERS BNP AND GERMANY'S DRESDNER BANK HAVE EMBARKED ON A STRATEGY OF BILATERAL COOPERATION THAT SOME ANALYSTS THINK COULD ULTIMATELY LEAD TO A CROSSBORDER MERGER SOCIETE GENERALE RATHER THAN ADOPTING SUCH TOPDOWN APPROACHES HAS PLUMPED FOR A BOTTOMUP APPROACH INVOLVING BILATERAL COOPERATION WITH SPECIFIC BANKS FOR SPECIFIC MARKET SECTORS MR VIENOT SAYS INSTEAD OF TRYING TO COMPETE WITH FOREIGN BANKS ON THEIR HOME TERRITORY HE MAKES CLEAR ITS AIM IS TO PROVIDE BETTER SERVICE TO DOMESTIC CLIENTS AT THE SAME TIME IT BOOSTS EARNINGS ON COMMISSIONS THE LINKUP WITH COMMERZBANK AND CENTRAL HISPANO NOW IN A PREPARATORY PHASE WILL HELP ACHIEVE BOTH OBJECTIVES ITS AIM IS TO ENABLE ALL THREE TO CAPTURE A SIGNIFICANT SLICE OF THE BANKING BUSINESS FROM TRADE AMONG THEIR COUNTRIES RATHER THAN ANOTHER AMBITIOUS ATTEMPT TO FORGE A NEW EUROPEWIDE BANKING GROUP HOWEVER THIS IS A PRAGMATIC APPROACH DESIGNED TO ACHIEVE ECONOMIES OF COSTS IN A SPECIFIC BUSINESS SECTOR MR VIENOT SAYS DOES IT AMOUNT TO A PRELUDE TO A EUROPEWIDE BANK HE ASKS RHETORICALLY I'M NOT AT ALL CONVINCED THAT IT DOES EVEN WITH SUCH A RESTRICTIVE VIEW HOWEVER COMMERZBANK OFFICIALS SAY THE COLLABORATION COULD BE EXPANDED TO INCLUDE BANKS IN OTHER COUNTRIES SUCH AS BRITAIN AND ITALY IF IT SUCCEEDS PARTICIPANTS WOULD BENEFIT IN TWO WAYS BY HAVING CUSTOMERS' FUNDS ON DEPOSIT AND BY EARNING COMMISSIONS ON PAYMENT TRANSFERS A NUMBER OF OTHER BANKS ARE FOLLOWING SIMILAR STRATEGIES SPAIN'S BANCO SANTANDER AND BRITAIN'S ROYAL BANK OF SCOTLAND FOR EXAMPLE HAVE BEEN JOINED BY PORTUGAL'S BANCO DE COMERCIO & INDUSTRIA AND CREDIT COMMERCIAL DE FRANCE IN SETTING UP A CROSSBORDER PAYMENTS NETWORK KNOWN AS IBOS OR INTERBANK ONLINE SYSTEM THIS SYSTEM ENABLES CLIENTS PARTICULARLY INDIVIDUALS AND SMALL BUSINESSES TO CONDUCT CROSSBORDER TRANSACTIONS ON A REALTIME BASIS NEGOTIATIONS ARE UNDER WAY FOR OTHER BANKS IN GERMANY AND BELGIUM TO JOIN THE SYSTEM IN A DIFFERENT TYPE OF CROSSBORDER COLLABORATION BANCO POPULAR ESPANOL HAS ESTABLISHED BILATERAL LINKS WITH RABOBANK IN THE NETHERLANDS GERMANY'S BAYERISCHE HYPOTHEKEN & WECHSELBANK AND BANCO COMERCIAL PORTUGUES THE PARTNERS PROVIDE ONE ANOTHER WITH OFFICE SPACE AT THEIR RESPECTIVE HEADQUARTERS AND HELP EACH OTHER GET BUSINESS SHARING IN THE PROFIT AT SOCIETE GENERALE MR VIENOT SAYS HE IS HOLDING TALKS WITH BRITAIN'S NATIONAL WESTMINSTER BANK ABOUT COOPERATION IN SERVICES FOR SMALL AND MEDIUMSIZE BUSINESSES IN GERMANY NATWEST IS TALKING TO COMMERZBANK ABOUT POSSIBLE COOPERATION AND A HOST OF OTHER BANKS ARE INVOLVED IN SIMILAR CONTACTS ELSEWHERE WHERE ALL THIS WILL LEAD IS ANYONE'S GUESS FOR THE MOMENT MR VIENOT IS CONCENTRATING PURELY ON THE BUSINESS IMPLICATIONS FROM SUCH LINKUPS THE BIRTH OF A EUROPEAN BANK HE PREDICTS IS STILL SOME WAYS OFF AT THE EARLIEST IN OUR CHILDREN'S TIME 9304190071 930419 BUSINESS BRIEF BICC PLC SHAREHOLDERS TO GET OPTION ON HOW TO RECEIVE DIVIDEND BICC PLC A BRITISH CABLE MAKER AND CONSTRUCTION COMPANY OFFERED SHAREHOLDERS THE OPTION OF RECEIVING NEW SHARES FOR THEIR 1992 FINAL DIVIDEND VALUED AT 19875 PENCE A SHARE OR 50 MORE THAN BICC'S PREVIOUSLY DECLARED 1325 PENCE CASH DIVIDEND BARCLAYS DE ZOETE WEDD SECURITIES LTD WHICH IS ADVISING BICC ON THE PLAN ALONG WITH CAZENOVE & CO SAID IT WOULD GIVE BICC SHAREHOLDERS A THIRD CHOICE BY OFFERING TO BUY THE NEW SHARES AT A PRICE THAT WOULD MAKE THE DIVIDEND WORTH 18875 PENCE IN CASH OR 42 HIGHER THAN THE PREVIOUS CASH DIVIDEND BZW SAID IT WOULD BUY THE SHARES FREE FROM COMMISSIONS BICC CHAIRMAN ROBIN BIGGAM SAID A 50 ACCEPTANCE OF THE SHARE OFFER WOULD INCREASE BICC'S PERSHARE EARNINGS AS MUCH AS 15 PENCE BECAUSE OF LOWER TAX PAYMENTS AND REDUCE ITS NET DEBT BY 28 MILLION 432 MILLION 9304190070 930419 TOWERS TRUSTEE PLANS TO SHUT SOME OFFICES LAY OFF EMPLOYEES NEW YORK THE BANKRUPTCY COURT TRUSTEE FOR TOWERS FINANCIAL CORP SAID HE PLANS TO CLOSE OUTLYING OFFICES AND LAY OFF SURPLUS EMPLOYEES AS PART OF HIS EFFORT TO REJUVENATE THE BATTERED DEBTCOLLECTION CONCERN ALAN COHEN A TURNAROUND SPECIALIST WHO IS ALSO BANKRUPTCY TRUSTEE FOR APPAREL MAKER RUSS TOGS INC SAID HE WON'T HAVE COMPLETE DETAILS ON THE CUTBACKS UNTIL LATER THIS WEEK DESPITE THE CUTBACKS MR COHEN SAID THAT TOWERS WILL CONTINUE TO OPERATE AND THAT SOME OF ITS DIVISIONS ESPECIALLY ITS HEALTHCARE BILL COLLECTING OPERATION ARE STRONG BUT SOME OFFICES ARE ALREADY BEING CLOSED EMPLOYEES IN THE CHICAGO OFFICE SAID THEY WERE TOLD TO CLEAR OUT FRIDAY MORNING TWENTYTWO EMPLOYEES WORKED IN THE CHICAGO OFFICE WHICH SPECIALIZED IN GENERAL BILL COLLECTING AND DID LITTLE HEALTHCARE WORK SAID CHRISTIAN BRUYNSEELS A TELEMARKETER IN THE OFFICE MR BRUYNSEELS SAID HE AND HIS COLLEAGUES WERE WAITING FOR A NEW SET OF PAYCHECKS AS THE CHECKS ISSUED LAST WEEK BOUNCED IN ADDITION TO THE PAYCHECK PROBLEMS TOWERS LAST WEEK HAD TO GET AN EMERGENCY ORDER FROM THE BANKRUPTCY COURT TO PREVENT UTILITIES FROM CUTTING OFF SERVICE TO ITS OFFICES MR COHEN HAS BEEN TRUSTEE FOR TOWERS FOR ABOUT A WEEK AFTER THE FIRST TRUSTEE APPOINTED BY THE COURT SAID HE COULD NOT ACCEPT THE POSITION BECAUSE OF A CONFLICT MR COHEN SAID HE IS STILL STUDYING THE SITUATION AT TOWERS AND EXPECTS SOON TO WORK OUT A FINANCING ARRANGEMENT WITH BANKS AND A BUSINESS PLAN TO KEEP TOWERS OPERATING TOWERS FILED LAST MONTH FOR BANKRUPTCY COURT PROTECTION SEVERAL MONTHS AFTER IT WAS SUED BY THE SECURITIES AND EXCHANGE COMMISSION FOR FRAUDULENTLY SELLING MORE THAN 400 IN BONDS AND UNREGISTERED NOTES THE SEC ALSO SUED STEVEN HOFFENBERG TOWERS CHAIRMAN AND OTHER OFFICERS OF THE COMPANY SAYING THEY SOLD THE SECURITIES WITHOUT HAVING ENOUGH ASSETS TO BACK THEM UP 9304190069 930419 HOECHST VENTURE PLAN IS PROBED BY EC UNIT SPECIAL TO THE WALL STREET JOURNAL BRUSSELS THE EUROPEAN COMMUNITY COMMISSION SAID IT WAS PROBING A PROPOSED POLYVINYLCHLORIDE JOINT VENTURE BETWEEN GERMAN CHEMICAL COMPANIES HOECHST AG AND WACKERCHIMIE AG UNDER ITS MERGER RULES UNDER THE PROPOSED DEAL HOECHST AND WACKER CHIMIE WHICH IS JOINTLY OWNED BY THE WACKER FAMILY AND HOECHST WILL TRANSFER THEIR PVC INTERESTS TO A NEW COMPANY VINOLIT HOECHST WACKER PVC GMBH THE COMMISSION HAS FOUR WEEKS TO DECIDE WHETHER THE LINKUP COULD HARM COMPETITION IN EC MARKETS IF IT FINDS SERIOUS DOUBTS ABOUT THE TRANSACTION IT MUST LAUNCH A DEEPER FOURMONTH PROBE THE COMMISSION CAN ALTER OR BLOCK LINKUPS THAT WOULD WEAKEN COMPETITION 9304190068 930419 BUSINESS BRIEF IRISH LIFE PLC IRISH FINANCE MINISTRY SELLS 18 STAKE IN INSURANCE FIRM THE IRISH FINANCE MINISTRY SAID IT SOLD AN 18 STAKE IN IRISH LIFE PLC FOR 104 MILLION PUNTS 158 MILLION THE PLACEMENT OF SHARES WITH INSTITUTIONAL INVESTORS REDUCES THE MINISTRY'S STAKE IN THE FORMER GOVERNMENTOWNED LIFE INSURER TO 15 FROM 33 THE AGENCY SAID THE SALE RAISED TWOTHIRDS OF THE 150 MILLION PUNTS IT HAS BUDGETED AS A TARGET FOR THE CURRENT FISCAL YEAR'S PRIVATIZATION PROCEEDS THE REMAINING MONEY IS LIKELY TO COME FROM THE GOVERNMENT'S 30 STAKE IN FOODGROUP GREENCORE PLC VALUED AT ABOUT 804 MILLION PUNTS AT CURRENT MARKET PRICES THE FINANCE MINISTRY SOLD 55 MILLION SHARES AT 190 PENCE A SHARE A 64 DISCOUNT TO IRISH LIFE'S CLOSING PRICE THURSDAY OF 203 PENCE THE GOVERNMENT SAID THE STAKE WAS SOLD EARLY FRIDAY TO A LARGE NUMBER OF INSTITUTIONS TWOTHIRDS OF WHICH ARE IRISH 9304190067 930419 BUSINESS BRIEF HAL INC AIRLINE HOLDING COMPANY POSTS 4THPERIOD EARNINGS HAL INC PARENT OF STRUGGLING HAWAIIAN AIRLINES SAID IT USED A 1066 MILLION GAIN FROM A DEBT RESTRUCTURING TO POST EARNINGS OF 397 MILLION OR 895 A SHARE FOR THE FOURTH QUARTER THE FIGURES ARE BASED ON A CALCULATION BASED ON THE COMPANY'S NINEMONTH RESULTS NEVERTHELESS THE CARRIER'S SURVIVAL REMAINS IN DOUBT SAID HAL CHAIRMAN JOHN UEBERROTH THE HONOLULUBASED AIRLINE HOLDING COMPANY HAD A NET LOSS OF 553 MILLION OR 1924 A SHARE A YEAR AGO REVENUE WAS 958 MILLION COMPARED WITH 842 MILLION A YEAR AGO FOR 1992 HAL HAD EARNINGS OF 29 MILLION OR 573 A SHARE VS A NET LOSS OF 985 MILLION OR 3549 A SHARE IN 1991 9304190066 930419 SPLIT DECISION VERDICT IN KING CASE OWES MUCH TO LESSONS OF STATECOURT TRIAL FEDERAL LAWYERS WERE AIDED BY EARLIER REHEARSAL' RESULT TWO GUILTY COPS QUESTION OF DOUBLE JEOPARDY BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES THE CONVICTIONS OF TWO OF FOUR LOS ANGELES POLICE OFFICERS FOR VIOLATING THE CIVIL RIGHTS OF A BLACK MOTORIST CONFIRM WHAT HAD SEEMED OBVIOUS IN AMERICA'S LIVING ROOMS RODNEY KING DIDN'T DESERVE TO BE BEATEN SENSELESS THE GOVERNMENT'S VICTORY GREETED WITH RELIEF AROUND THE COUNTRY VINDICATED FEDERAL PROSECUTORS' STRATEGY OF PUTTING THE DEFENDANTS ON TRIAL AGAIN AND UNDERSCORED THE GOVERNMENT'S EXTRAORDINARY RECORD OF WINNING SUCH CASES AFTER LOCAL OFFICIALS FAIL TO GET INDICTMENTS OR CONVICTIONS ON STATELAW CHARGES AN IMPORTANT REASON MANY LAWYERS SAY IS THAT THE FEDERAL LAWYERS HAVE THE LUXURY OF REVIEWING ANY MISTAKES THAT LOCAL PROSECUTORS MAY HAVE MADE BUT THE FEDERAL PROSECUTION WHILE WIDELY PRAISED ALSO RAISES QUESTIONS ABOUT THE ROLE OF THE FEDERAL GOVERNMENT IN HOLDING PEOPLE ACCOUNTABLE A SECOND TIME ESSENTIALLY FOR THE SAME OFFENSE THE HIGHLY CHARGED KING CASE INVOLVING WHITE DEFENDANTS A BLACK VICTIM AND BROAD ISSUES OF RACIAL JUSTICE WAS LARGELY A REPEAT OF THE SIMI VALLEY TRIAL OF THE OFFICERS LAST YEAR ON STATE ASSAULTRELATED CHARGES IN THAT CASE A SUBURBAN JURY THAT INCLUDED NO BLACKS ACQUITTED THREE OF THE POLICEMEN AND FAILED TO REACH A VERDICT ON THE FOURTH SETTING OFF THE WORST URBAN RIOTS OF THE CENTURY IN THE FEDERAL CASE A LOS ANGELES JURY WHICH INCLUDED TWO BLACKS AND A HISPANIC ANNOUNCED SATURDAY THAT OFFICER LAURENCE POWELL WHO HAD STRUCK MOST OF THE BLOWS DURING THE MARCH 1991 INCIDENT WAS GUILTY OF VIOLATING MR KING'S CONSTITUTIONAL RIGHT TO BE FREE FROM AN ARREST MADE WITH UNREASONABLE FORCE SGT STACEY KOON THE OFFICER IN CHARGE AT THE SCENE WAS CONVICTED OF PERMITTING THE CIVILRIGHTS VIOLATION TO OCCUR BUT THE JURY DETERMINED THAT THE GOVERNMENT HADN'T ADEQUATELY PROVED ITS CHARGES AGAINST TIMOTHY WIND A ROOKIE AT THE TIME OF THE INCIDENT WHO HAD BEEN UNDER THE SUPERVISION OF BOTH THE CONVICTED DEFENDANTS ALSO ACQUITTED WAS THEODORE BRISENO WHO HAD STOMPED ON MR KING BUT HAD ALSO MOVED TO BLOCK ONE OF MR POWELL'S BLOWS MESSRS POWELL AND KOON WHO ARE EXPECTED TO APPEAL COULD FACE AS LONG AS 10 YEARS IN PRISON AND AS MUCH AS 250000 IN FINES ALTHOUGH THE FEDERAL SENTENCING GUIDELINES WOULD LIKELY DICTATE LESSER PENALTIES FOR THE FIRSTTIME OFFENDERS LEGAL EXPERTS ESTIMATE THAT THE TWO WOULD GET SENTENCES OF ABOUT TWO TO FIVE YEARS AND MINIMAL FINES BOTH MEN ARE FREE ON 5000 BAIL UNTIL SENTENCING SCHEDULED FOR AUG 4 FROM THE START FEDERAL PROSECUTORS WERE FACED WITH A MORE DIFFICULT LEGAL CASE THAN WERE THEIR STATECOURT PREDECESSORS THEY WERE REQUIRED TO PROVE BOTH THAT THE POLICEMEN USED TOO MUCH FORCE IN ARRESTING MR KING AND THAT IT WAS THEIR CONSCIOUS OBJECTIVE TO DO SO PROSECUTORS IN THE STATE TRIAL COULDN'T PROVE THE FIRST ELEMENT AND DIDN'T HAVE TO PROVE THE SECOND BUT IF THEIR CASE WAS MADE TOUGHER BY THAT ADDED INTENT REQUIREMENT US PROSECUTORS HAD THE SIGNIFICANT STRATEGIC EDGE OF HAVING SEEN A RUNTHROUGH IN PARTICULAR THEY BENEFITED FROM KNOWING THAT THE NOTORIOUS 81SECOND VIDEOTAPE OF MR KING'S BEATING HAD BEEN PERCEIVED AS AMBIGUOUS IN PLACES BY THE FIRST JURY AND THAT MORE EVIDENCE WOULD BE NEEDED TO TRANSLATE INTO LEGAL TERMS WHAT THE TAPE SAID IN VISCERAL TERMS INDEED TWO JURORS SPEAKING ANONYMOUSLY ON TELEVISION OVER THE WEEKEND SAID THE VIDEOTAPE WITHIN ITS NEW CONTEXT WAS A CRUCIAL PIECE OF EVIDENCE WHILE TYPICALLY LAUDING THE RESULT OF THE RETRIAL SOME LEGAL COMMENTATORS QUESTION THE FAIRNESS OF GIVING PROSECUTORS THAT SECOND CHANCE A RETRIAL LIKE THIS PROVIDES A TREMENDOUS OPPORTUNITY TO LEARN FROM YOUR MISTAKES SAYS ALAN DERSHOWITZ A HARVARD LAW PROFESSOR AND CRIMINALDEFENSE LAWYER THERE'S ALWAYS GOING TO BE A LINGERING SUSPICION THAT THE PROSECUTORS' CASE THIS TIME WAS IMPROVED BY THE REHEARSAL IN THE STATE CASE AND THERE'S SOMETHING ABOUT THAT THAT'S INCONSISTENT WITH THE SPIRIT OF THE CONSTITUTIONAL PROTECTION AGAINST DOUBLE JEOPARDY INDEED THE FEDERAL GOVERNMENT'S DECISION TO COME INTO THE KING CASE AFTER THE FUROR OVER THE RESULTS IN THE STATE TRIAL WAS HOTLY DEBATED AMONG LEGAL SCHOLARS BECAUSE OF THE DOUBLEJEOPARDY IMPLICATIONS ALTHOUGH THE CONSTITUTION SAYS THAT NO PERSON SHALL BE SUBJECT FOR THE SAME OFFENSE TO BE TWICE PUT IN JEOPARDY OF LIFE OR LIMB THE SUPREME COURT RULED IN 1959 THAT THE FEDERAL GOVERNMENT CAN TRY A PERSON FOR CONDUCT THAT DIDN'T RESULT IN A CONVICTION IN STATE COURT THE THEORY WAS THAT THE STATE AND FEDERAL GOVERNMENTS ARE SEPARATE SOVEREIGNS ENTITLED TO PROSECUTE THEIR OWN CRIMES IN THEIR OWN COURTS THE RULING CAME AT A TIME WHEN FEDERAL CRIMINAL STATUTES WERE INCREASINGLY BEING USED TO PROSECUTE SUCH ACTIVITIES AS VIOLENCE CONNECTED WITH LABOR STRIKES AND THE COURT CITED CONCERNS THAT THE EFFICIENCY OF FEDERAL LAW ENFORCEMENT WOULD SUFFER IF THE SEPARATESOVEREIGNS RULE WEREN'T ADOPTED IN THE 1960S THE RULING PAVED THE WAY FOR FEDERAL PROSECUTIONS IN RACE CASES IT ALWAYS HAS BEEN CONTROVERSIAL ESPECIALLY AMONG CRIMINALDEFENSE LAWYERS AND CIVILLIBERTIES GROUPS BUT THE NOTGUILTY VERDICTS IN THE FIRST TRIAL OVER THE BEATING OF MR KING CAUSED A CRISIS OF CONSCIENCE FOR SOME BECAUSE THE VIDEOTAPE OF THE INCIDENT APPEARED SO BRUTAL LAST SUMMER THE AMERICAN CIVIL LIBERTIES UNION SUSPENDED ITS LONGSTANDING OPPOSITION TO THE SUPREME COURT'S DECISION ALLOWING FEDERAL RETRIALS HOWEVER AS THE FEDERAL CASE DREW TO A CLOSE TWO WEEKS AGO THE ACLU REINSTATED ITS CLAIM THAT THERE SHOULD BE NO EXCEPTION TO DOUBLEJEOPARDY PRINCIPLES SIMPLY BECAUSE THE SAME OFFENSE MAY BE PROSECUTED BY TWO DIFFERENT SOVEREIGNS THE JUSTICE DEPARTMENT'S POSITION IS THAT THE SUPREME COURT HAS ANSWERED THE ISSUE AND HAS REPEATEDLY RULED THAT SUBSEQUENT FEDERAL PROSECUTIONS DON'T VIOLATE THE DOUBLEJEOPARDY PROHIBITION THOUGH FEDERAL CIVILRIGHTS PROSECUTIONS ARE QUITE RARE ONCE THE US GOVERNMENT DOES DECIDE TO BRING A CASE IT USUALLY PREVAILS IN 1991 FOR EXAMPLE THE JUSTICE DEPARTMENT BROUGHT CRIMINAL CIVILRIGHTS PROSECUTIONS AGAINST 129 PEOPLE INCLUDING 64 POLICE OFFICERS AND OBTAINED 108 CONVICTIONS OR GUILTY PLEAS THOUGH BOTH SIDES MAY BENEFIT FROM REVIEWING AN EARLIER CASE LAWYERS SAY THAT THE DEFENSE GAINS LESS BECAUSE IT DOESN'T HAVE OBVIOUS MISTAKES TO CORRECT AND MAY BE TEMPTED TO TRY THE CASE THE SAME WAY AGAIN OR MAKE CHANGES THAT WEREN'T WARRANTED THE REALITY IS IF YOU AND I PLAY CHESS AND YOU BEAT ME THE SECOND TIME I'M IN BETTER SHAPE TO BEAT YOU BECAUSE I KNOW WHAT ALL YOUR MOVES ARE SAYS ERWIN CHEMERINSKY A LAW PROFESSOR AT THE UNIVERSITY OF SOUTHERN CALIFORNIA IN THE KING CASE THE FEDERAL GOVERNMENT ENLISTED A SERIES OF IMPORTANT WITNESSES WHO WEREN'T CALLED TO THE STAND LAST YEAR THEY INCLUDED A POLICE AUTHORITY ON THE PROPER USE OF FORCE AND MEDICAL EXPERTS WHO SAID MR KING'S HEAD INJURIES WERE CAUSED BY BATON BLOWS NOT BY A FALL TO THE GROUND AS DEFENSE LAWYERS HAD CLAIMED IN ADDITION CIVILIAN WITNESSES DESCRIBED THE BEATING FIRSTHAND AND THERE WAS MR KING HIMSELF WHO QUIETLY TOLD JURORS ABOUT THE PAIN THAT WAS INFLICTED THE GOVERNMENT'S USEOFFORCE AUTHORITY SGT MARK CONTA OF THE LOS ANGELES POLICE DEPARTMENT SET AN IMPORTANT THEME NEAR THE BEGINNING OF THE TRIAL THAT THE ARREST HAD BEGUN PROPERLY BUT THEN SPIRALED BEYOND THE LIMITS OF POLICEDEPARTMENT POLICY REVIEWING THE VIDEO FRAME BY FRAME MR CONTA SAID MR KING APPEARED TO HAVE PROVOKED MR POWELL'S FIRST BATON BLOW BY LUNGING AT THE OFFICER BUT WITHIN 30 SECONDS AFTER THE PRONE SUSPECT APPEARED TO MOVE HIS ARM BACK TO BE HANDCUFFED ALL BATON BLOWS AND KICKS BY THE DEFENDANTS WERE EXCESSIVE MR POWELL DELIVERED MOST OF THE BLOWS IN THAT SECTION LAST YEAR STATE PROSECUTORS DIDN'T CALL A USEOFFORCE EXPERT IN THEIR MAIN CASE BUT ONLY IN REBUTTAL AFTER THE DEFENSE HAD ALREADY UNDERMINED THE EXCESSIVEFORCE ARGUMENT WITH AN EFFECTIVE WITNESS A SWAT TEAM LEADER SGT CHARLES DUKE EVEN THEN THE STATE GOVERNMENT'S LATE ENTRY WAS A SENIOR POLICEDEPARTMENT OFFICIAL WHO ADMITTED HE DIDN'T HAVE MUCH EXPERIENCE IMPLEMENTING THE POLICY THE SIMI VALLEY JURY DEADLOCKED ON ONE COUNT OF EXCESSIVE FORCE AGAINST MR POWELL WHILE ACQUITTING THE OTHER OFFICERS IRA SALZMAN WHO REPRESENTED MR KOON IN THE FEDERAL CASE AND TOOK CHARGE OF PREPARING THE DEFENSE CASE ON THE USEOFFORCE ISSUE SAID THE FEDERAL PROSECUTORS KNEW NOT ONLY THAT THEY NEEDED A BETTER WITNESS OF THEIR OWN BUT ALSO THE STRENGTHS AND WEAKNESSES OF THE MAIN DEFENSE WITNESS THE GOVERNMENT FILED A SUCCESSFUL MOTION TO LIMIT MR DUKE'S TESTIMONY ONLY TO ACTUAL POLICE POLICY WHEN DISCUSSING THE VIDEO AND NOT A BROADER DISCUSSION OF WHAT POLICE OFFICERS DO IN DANGEROUS CIRCUMSTANCES THEY DID THAT BECAUSE THEY KNEW WHAT HE SAID LAST YEAR WAS DAMAGING MR SALZMAN SAID PROSECUTORS DECLINED REQUESTS TO COMMENT ON THEIR TRIAL STRATEGY IN GENERAL OBSERVERS SAID PROSECUTORS WERE LESS CONFIDENT IN THE VIDEOTAPE AND WERE WILLING TO TAKE A CHANCE ON EVIDENCE THAT MIGHT HAVE SEEMED RISKY LAST YEAR FOR INSTANCE EARLY ON THEY CALLED BYSTANDERS WHO HAD GIVEN STATE INVESTIGATORS ACCOUNTS OF THE INCIDENT THAT DIDN'T PRECISELY MATCH THE VIDEOTAPE BUT EVEN THOUGH THE DETAILS WERE ATTACKED BY DEFENSE LAWYERS THE OBSERVERS' EYEWITNESS TESTIMONY ABOUT THE USE OF FORCE WAS COMPELLING ONE WOMAN WHO HAD WATCHED THE BEATING FROM HER APARTMENT CHOKED UP AS SHE DESCRIBED OFFICERS KICKING MR KING ANY WAY THEY COULD GET A LICK IN IN CONTRAST TO THE GOVERNMENT'S DECISION TO PRESENT MORE WITNESSES THAN PROSECUTORS HAD IN THE STATE CASE THE DEFENSE TOOK THE OPPOSITE APPROACH COALESCING ITS CASE AROUND THE CENTRAL FIGURE OF SGT KOON ON THE VIDEOTAPE HE IS SEEN DELIVERING ONLY AN ELECTRIC SHOCK TO MR KING WITH A TASER STUN GUN WHICH IS DESIGNED TO DISABLE A PERSON TEMPORARILY AS IN THE FIRST CASE SGT KOON MADE A COOL SELFASSURED WITNESS ON THE ISSUE OF THE USE OF FORCE HE TESTIFIED THAT MR KING APPEARED TO BE UNDER THE INFLUENCE OF THE DRUG PCP AND KEPT DEFYING THE OFFICERS' ATTEMPTS TO KEEP HIM ON THE GROUND BLOOD TESTS SHOWED MR KING HADN'T TAKEN THE DRUG MR KOON INSISTED IT WAS MR KING WHO CALLED THE SHOTS BY REFUSING TO COMPLY WITH ORDERS TO STAY STILL RODNEY KING CONTROLS THE SITUATION THE OFFICER SAID I CONTROL THE OFFICERS THE OTHER THREE OFFICERS CHOSE NOT TO TESTIFY IN THIS CASE LAST YEAR ALL BUT MR WIND TESTIFIED AND MR BRISENO TOOK THE STAND AND CRITICIZED HIS COLLEAGUES SOME OBSERVERS QUESTIONED THE DEFENSE DECISION TO CHANGE COURSE EVEN CONSIDERING HOW RISKY MR BRISENO'S LIVE TESTIMONY MIGHT HAVE BEEN TO THE OTHERS JURORS GIVE COPS THE BENEFIT OF THE DOUBT AND WHEN A COP DOESN'T TESTIFY JURORS WONDER WHY SAYS DANIEL CAPLIS A DENVER TRIAL LAWYER WHO WATCHED THE TRIAL POLICEMEN ARE EXPECTED TO BE PROFESSIONAL AND KNOW HOW TO APPEAR ON THE STAND JURORS EXPECT THEM TO TELL THEIR SIDE OF THE STORY IF THEY DON'T THEY'LL WONDER WHY MAYBE IT MEANS THEY CAN'T ANSWER THE NEW STRATEGY BACKFIRED AGAINST MESSRS POWELL AND KOON LATE IN THE PROCEEDINGS AFTER THE DEFENSE RESTED PROSECUTORS INTRODUCED A VIDEOTAPE OF MR BRISENO'S TESTIMONY FROM THE STATE TRIAL THE MOVE CAME OVER VIGOROUS DEFENSE OBJECTIONS AND AN UNSUCCESSFUL EMERGENCY APPEAL OF JUDGE JOHN DAVIES'S RULING TO A HIGHER COURT IN THE TAPE THE FINAL PIECE OF EVIDENCE IN THE TRIAL OFFICER BRISENO TESTIFIED THAT MR KING DIDN'T APPEAR TO BE A THREAT DURING THE BEATING MR BRISENO DIRECTLY CONTRADICTED SGT KOON CLAIMING HE NEVER HEARD AN ORDER NOT TO HIT THE SUSPECT IN THE HEAD AND CONTENDING THAT MR POWELL HIT MR KING SEVERAL TIMES IN THE HEAD OR FACE ANOTHER DEFENSE EFFORT TO REFINE ITS STRATEGY WAS A SETBACK PARTICULARLY FOR MR POWELL ON THE DAY AFTER MR KOON COMPLETED HIS TESTIMONY MR POWELL'S LAWYER MICHAEL STONE CALLED CALIFORNIA HIGHWAY PATROL OFFICER MELANIE SINGER IN THE FIRST TRIAL SHE HAD BEEN AN EVENTEMPERED WITNESS FOR THE PROSECUTION DESCRIBING HER HIGHSPEED PURSUIT OF MR KING'S CAR AND HIS PROVOCATIVE BEHAVIOR WHEN FIRST PULLED OVER THE DEFENSE THOUGHT THAT HER DESCRIPTION OF MR KING'S BEHAVIOR ACTUALLY WOULD HELP ITS CASE BUT IN THE FEDERAL TRIAL SHE BURST INTO TEARS AS SHE DESCRIBED SEEING MR POWELL SMASH RODNEY KING IN THE HEAD I'LL NEVER FORGET IT TO THE DAY I DIE SHE SAID MR KING'S TESTIMONY ALSO WAS POWERFUL HE PROVIDED JURORS WITH A GRAPHIC DESCRIPTION OF HOW IT FELT TO BE STRUCK WITH BATONS IT WAS LIKE JABBING YOUR TOE ON METAL EVERY TIME I WOULD GET HIT ALL OVER MY BODY HE SAID MARCH 9 THE FIRST OF HIS TWO DAYS ON THE WITNESS STAND I KEPT WONDERING WHAT I HAD DONE TO DESERVE THAT TYPE OF PAIN THE TASER SHOCKS HE SAID MADE HIM FEEL LIKE MY BLOOD WAS BOILING INSIDE OF ME MR KING DIDN'T LOSE HIS TEMPER OR RAISE HIS VOICE IN ANGER HE QUICKLY AND RESPECTFULLY ADMITTED THAT HE HAD BEEN DRUNK AND SPEEDING HELPING TO SOFTEN THE IMPACT OF THAT EVIDENCE ON THE JURY WHEN IT WAS LATER ELICITED BY DEFENSE LAWYERS ON CROSSEXAMINATION BY ASKING THEIR WITNESS TO CONCEDE HIS OWN FLAWS EARLY PROSECUTORS EFFECTIVELY INOCULATED HIM FROM DEFENSE ATTACKS LEGAL EXPERTS SAID PROSECUTORS IN THE STATE CASE HAD CHOSEN NOT TO CALL MR KING AS A WITNESS REPORTEDLY BECAUSE THEY HAD WORRIED ABOUT HIS DEMEANOR AND FEARED EXPOSING HIM TO DEFENSE LAWYERS' QUESTIONS ABOUT HIS CRIMINAL RECORD AND HIS BEHAVIOR THE NIGHT OF THE BEATING MR KING STUMBLED ON OCCASION HE FIRST SAID HE HEARD THE OFFICERS CALL HIM NIGGER AND LATER CONCEDED HE WASN'T SURE THAT THE WORD HAD BEEN USED HE ALSO SAID HE WAS HANDCUFFED AND HOGTIED DURING THE BEATING WHICH WASN'T SHOWN BY THE VIDEOTAPE BUT THE IMAGE OF THE WELLDRESSED SOFTSPOKEN MAN ON THE STAND CONTRASTED SHARPLY WITH THE MONSTERLIKE FIGURE THAT SGT KOON TESTIFIED HE FEARED THAT NIGHT JURORS IN THE STATE CASE WHO HADN'T SEEN MR KING THEMSELVES LATER SAID THEY HAD ACCEPTED THE DEFENDANTS' PORTRAIT OF A THREATENING SUSPECT WHO EXHIBITED SUPERHUMAN STRENGTH THE ADDITIONAL FEDERAL REQUIREMENT THAT WRONGFUL INTENT BE PROVED CAME FROM THE CIVIL RIGHTS ACT OF 1871 UNDER WHICH THE FEDERAL CASE WAS BROUGHT THE STATUTE WHOSE MAIN PURPOSE WAS TO THWART THE KU KLUX KLAN'S EFFORTS TO MAINTAIN A CAMPAIGN OF VIOLENCE AGAINST NEWLY FREED SLAVES MAKES IT A FEDERAL CRIME FOR ANYONE ACTING UNDER COLOR OF LAW TO INTENTIONALLY VIOLATE A PERSON'S CIVIL RIGHTS HISTORICALLY PROVING INTENT HAS BEEN DIFFICULT IN SUCH CASES FOR EXAMPLE THE FEDERAL GOVERNMENT'S FAILURE TO PROVE INTENT RESULTED IN THE DISMISSAL OF A 1974 CASE AGAINST FORMER OHIO NATIONAL GUARDSMEN IN THE KENT STATE UNIVERSITY SHOOTINGS IN WHICH FOUR STUDENTS WERE KILLED IN 1970 ALTHOUGH GUARDSMEN FIRED AT UNARMED STUDENTS THAT WASN'T SUFFICIENT TO PROVE THAT THE SERVICEMEN MEANT TO DEPRIVE THE PROTESTERS OF THEIR CONSTITUTIONAL RIGHTS THE LAW WAS APPLIED MORE SUCCESSFULLY IN CASES WHERE EVIDENCE OF RACISM WAS USED TO SHOW INTENT SUCH AS THE PROSECUTION OF THE MEN WHO KILLED THREE CIVILRIGHTS WORKERS IN MISSISSIPPI IN 1964 MORE RECENTLY IT WAS USED IN DENVER IN 1989 TO CONVICT AN AVOWED ANTISEMITE WHO SHOT RADIO TALK SHOW HOST ALAN BERG WHO WAS JEWISH IN THE LOS ANGELES CASE THE USUAL DIFFICULTY OF PROVING INTENT WAS EXACERBATED BY THE LACK OF EVIDENCE OF RACIAL MOTIVATION RECORDS OF POLICE COMPUTER MESSAGES FROM EARLIER ON THE NIGHT OF THE INCIDENT CONTAINED RACIST COMMENTS BY MR POWELL BUT IN THE WEEKS BEFORE TRIAL JUDGE DAVIES RULED THE WELLPUBLICIZED MESSAGES INADMISSIBLE BECAUSE THEY DIDN'T DIRECTLY REFER TO THE BEATING ALTHOUGH THE GRAPHIC VIDEO OF FOUR WHITE OFFICERS BEATING A BLACK MAN CONJURED UP IMAGES OF PAST RACIAL ATTACKS PROSECUTORS HAD NO OTHER ADMISSIBLE EVIDENCE TO SHOW THAT THE POLICEMEN MIGHT HAVE BEEN MOTIVATED BY PREJUDICE INSTEAD TO PROVE WRONGFUL INTENT THEY INTRODUCED EVIDENCE THAT THE OFFICERS BEAT MR KING TO PUNISH HIM FOR DISRESPECT THEN LIED TO COVER UP THEIR ACTIONS THE GOVERNMENT PRESENTED A COGENT STORY THAT THESE OFFICERS WANTED TO TEACH KING A LESSON NOT SIMPLY OVERCOME HIS RESISTANCE TO ARREST SAYS PETER ARENELLA A PROFESSOR OF LAW AT THE UNIVERSITY OF CALIFORNIA LOS ANGELES THEIR THEORY THAT THE OFFICERS WANTED TO PUNISH MR KING FOR DISRESPECT HAD THE BENEFIT OF TURNING A POSSIBLE WEAKNESS OF THE CASE MR KING'S INITIAL BEHAVIOR TO THE GOVERNMENT'S ADVANTAGE HE'S DISRESPECTFUL HE'S DRUNK AND A WISEACRE AND THEY'RE GOING TO TEACH HIM A LESSON SAID STEVEN CLYMER A LEAD PROSECUTOR IN A FORCEFUL CLOSING STATEMENT THE BEATING ONLY ENDED WHEN IT DID MR CLYMER SAID BECAUSE MR KING BEGGED THE OFFICERS TO STOP THEY HAD ACCOMPLISHED THEIR PURPOSE THEY HAD BEATEN HIM INTO SUBMISSION HE SAID BECAUSE PROSECUTORS LACKED DIRECT EVIDENCE OF WHAT THE OFFICERS WERE THINKING DURING THE BEATING THEY WERE FORCED TO USE CIRCUMSTANTIAL EVIDENCE TO SHOW THAT THE DEFENDANTS KNEW THEY HAD DONE WRONG FOR EXAMPLE THE PROSECUTORS EXHIBITED ARREST REPORTS FILED BY MESSRS POWELL WIND AND KOON THAT APPEARED TO MINIMIZE THE SEVERITY OF THE BEATING AND DIDN'T MENTION THAT MR KING WAS STRUCK WHILE ON THE GROUND THERE WAS ALSO EVIDENCE THAT MR POWELL WAS LAUGHING AT THE SCENE AND JOKING AT THE HOSPITAL WHERE MR KING WAS BROUGHT THROUGHOUT THE KING TRIAL THE MEMORY OF LAST SPRING'S RIOTS AND POSSIBILITY OF A DEADLY REPRISE HAUNTED PARTICIPANTS BEFORE THEY WERE CHOSEN TO SERVE ON THE PANEL THE JURORS ACKNOWLEDGED THEY KNEW ABOUT THE UNREST BUT WOULD BE ABLE TO SET IT ASIDE IN THEIR MINDS BEFORE HANDING THEM THE CASE JUDGE DAVIES GAVE THE JURY OF EIGHT MEN AND FOUR WOMEN AN UNUSUAL INSTRUCTION NOT TO CONSIDER ANY EXTERNAL CONSEQUENCES OF THEIR VERDICT BUT LEGAL EXPERTS CAUTIONED ALL ALONG THAT KNOWLEDGE OF LAST YEAR'S EVENTS WOULD STILL EXERT SOME INFLUENCE THEY'RE NOT THINKING OH MY GOD WE'D BETTER CONVICT BECAUSE THERE WAS A RIOT LAST TIME' SPECULATES RICHARD LEMPERT A PROFESSOR OF LAW AT THE UNIVERSITY OF MICHIGAN WHO SPECIALIZES IN JURY BEHAVIOR BUT WHEN THEY'RE EVALUATING THE FACTS THEY'RE INFLUENCED BY KNOWLEDGE OF THE EVENTS JUST AS THEY'RE INFLUENCED BY ALL OTHER KNOWLEDGE THEY BRING TO THE JURY ROOM THEODORE BRISENO WHILE ACTING UNDER COLOR OF THE LAWS OF THE STATE OF CALIFORNIA AIDING AND ABETTING EACH OTHER DID WILLFULLY STRIKE WITH BATONS KICK AND STOMP RODNEY GLEN KING BY THESE ACTIONS THE INDICTMENT SAID THEY WILLFULLY DEPRIVED KING OF THE CONSTITUTIONAL RIGHT NOT TO BE DEPRIVED OF LIBERTY WITHOUT DUE PROCESS OF LAW INCLUDING THE RIGHT TO BE SECURE IN HIS PERSON AND FREE FROM THE INTENTIONAL USE OF UNREASONABLE FORCE BY MAKING AN ARREST UNDER COLOR OF LAW WILLFULLY PERMIT OTHER LOS ANGELES POLICE OFFICERS IN HIS PRESENCE AND UNDER HIS SUPERVISION TO UNLAWFULLY STRIKE WITH BATONS KICK AND STOMP RODNEY GLEN KING AND DID WILLFULLY FAIL TO PREVENT THIS UNLAWFUL ASSAULT RESULTING IN BODILY INJURY TO RODNEY GLEN KING THE INDICTMENT ALLEGED THIS DEPRIVED KING OF A CONSTITUTIONAL RIGT TO BE FREE FROM HARM WHILE IN OFFICIAL CUSTODY 25000 IN FINES MINIMUM PENALTIES ARE SUBJECT TO COMPLICATED FEDERAL GUIDELINES CASE OFICERS' ACQUITTAL IN STATE COURT CONSIDERED RODNEY KING VICTIM BUT BELIEVED ACCOUNTS OF BEATING WERE HYPED UP TO ME FORMER MARINE SAID NEVER HAD TO MAKE A HARD DECISION IN HIS LIFE PREDOMINANTLY BLACK WATTS SAID FIRST REACTION WAS THAT STATE VERDICTS WERE UNFAIR DEFENSE TRIED TO REMOVE HIM BUT CHALLENGE WAS DENIED SHERIFF'S DEPUTY HAS FRIENDS IN LAW ENFORCEMENT AND HALF SISTER IS A PUBLIC DEFENDER INITIAL REACTION TO STATE VERDICTS WAS SHOCK BUT SUSPECTED HADN'T SEEN ALL EVIDENCE ESTATE SAID STATE VERDICT WAS NO SURPRISE HIGHWAY PATROL OFFICER STUNNED BY FIRST VERDICT AND THOUGHT THAT JURY SHOULD HAVE HAD MORE BLACKS CARED FOR BY NANNY DIDN'T FOLLOW FIRST TRIAL CLOSELY BUT VERDICT SURPISED HER INSURANCE SALESMEN THOUGHT BEATING VIDEOTAPE WAS TAKEN OUT OF CONTEXT BUT IT WAS CLEAR THAT A BLACK MAN WAS SUBDUED AND BEATEN COUSTOMERS OF THE BEATING HE GOT IMPRESSION THAT KING DID SOMETHING THAT CAUSED IT BATON AND MACE DISAGREED WITH COMMUNITY FEELINGS THAT PREVIOUS VERDICT WAS UNJUST TRIALS OF STATE VERDICT HE SAID I BELIEVE THE JURY DID ITS JOB LAWENFORCEMENT CAREER BUT WASNT HIRED ONLY JUROR WHO HAD NOT SEEN VIDEOTAPE OF KING'S BEATING 9304190065 930419 THE CUTTING EDGE GERMANOWNED MAKER OF POWER TOOLS FINDS JOB TRAINING PAYS OFF STIHL'S 4YEAR APPRENTICESHIP AT VIRGINIA UNIT YIELDS SKILLED PRODUCTIVE STAFF IDEAS FOR CLINTON'S PROGRAM BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL VIRGINIA BEACH VA WITH BLOND HAIR FLOWING TO HIS SHOULDERS DONALD DOWDY SEEMS AN UNLIKELY POSTER BOY FOR JOBTRAINING PROGRAMS BUT THE MUSCULAR 41YEAROLD NORTH CAROLINA NATIVE COULD WELL SERVE AS JUST THAT ABOUT 15 YEARS AGO NEARLY A DECADE AFTER GRADUATING FROM HIGH SCHOOL MR DOWDY WAS YET ANOTHER PRODUCT OF A SINGLEMINDED US EDUCATIONAL SYSTEM THAT PREPARES STUDENTS FOR COLLEGE EVEN THOUGH 79 OF ALL AMERICANS NEVER GET AN UNDERGRADUATE DEGREE LIKE MANY KIDS WITHOUT SKILLS MR DOWDY WAS A SELFDESCRIBED JACK OF A FEW TRADES BOUNCING FROM ONE UNSKILLED LOWPAYING JOB TO ANOTHER HE BECAME A MAINTENANCE WORKER HERE FOR STIHL INC BUT TODAY THANKS TO TRAINING HE GOT AT THE GERMANOWNED MAKER OF CHAIN SAWS LAWN TRIMMERS AND BLOWERS THE FORMER KNOCKAROUND IS EARNING 45000 A YEAR IN THE LATE 1970S STIHL SHORT OF CRAFTSMEN WHO COULD BUILD AND SERVICE THE MACHINES THAT MAKE ITS POWER TOOLS TOOK MR DOWDY OUT OF MAINTENANCE AND PUT HIM IN AN INTENSIVE FOURYEAR APPRENTICE PROGRAM SINCE THEN MACHINES CRAFTED BY MR DOWDY AND 35 OTHER APPRENTICE GRADUATES HAVE HELPED STIHL TRIPLE WORKER PRODUCTIVITY HERE AND BLOSSOM INTO VIRGINIA BEACH'S BIGGEST MANUFACTURER IT HAS 498 WORKERS UP FROM 40 IN 1974 STIHL IS RUNNING THE TYPE OF APPRENTICE PROGRAM THAT CLINTON ADMINISTRATION OFFICIALS DREAM OF AS A WAY OF CREATING HIGHSKILL HIGHWAGE JOBS THE COMPANY PROVIDES BOTH THE TRAINING AND THE JOBS AND ITS SKILLED CRAFTSMEN BUILD CUSTOMDESIGNED MACHINES THAT MAKE AND TEST POWER TOOLS FASTER AND BETTER I COULD NOT ENVISION RUNNING OUR OPERATION AS EFFICIENTLY AS WE ARE WITHOUT THE HELP OF THESE FORMER APPRENTICES SAYS PETER MUELLER THE EXECUTIVE VICE PRESIDENT FOR MANUFACTURING STIHL'S US OPERATION HAS WON SEVEN OF 10 ANNUAL QUALITY COMPETITIONS AMONG THE FIVE MANUFACTURING PLANTS OWNED BY ITS CLOSELY HELD PARENT ANDREAS STIHL THE OTHER FACTORIES ARE IN GERMANY AUSTRALIA BRAZIL AND SWITZERLAND STIHL'S US PROGRAM IS PATTERNED AFTER A DUAL SYSTEM APPRENTICESHIP THAT HAS LONG LINKED GERMANY'S BUSINESSES GOVERNMENT AND SCHOOLS TO FUNNEL 70 OF ITS HIGHSCHOOL STUDENTS INTO 374 SPECIFIC CAREERS BY CONTRAST ONLY 3 OF AMERICAN MEN AND 1 OF WOMEN ARE IN AN APPRENTICE PROGRAM BY AGE 25 AMERICANS NEVER HAVE RECOGNIZED THAT BEING A CRAFTSMAN TAKES A LOT OF TRAINING IT'S A BIG PROBLEM FOR AMERICAN INDUSTRY SAYS FRED WHYTE A CANADIAN WHO RUNS STIHL'S US OPERATION IT IS ALSO A PROBLEM FOR OTHER GERMAN COMPANIES OPERATING IN THE US AND MANY OF THEM ARE SETTING UP THEIR OWN APPRENTICESHIPS POTTER & BRUMFIELD INC A SIEMENS AG UNIT BEGAN A PROGRAM FOR 15 WORKERS LAST YEAR AND PLANS TO DOUBLE IT THIS YEAR WE TRIED FOR YEARS TO HIRE THE APPROPRIATE PEOPLE SAYS ROY SLAVIN POTTER'S PRESIDENT WE REALIZED THAT WE HAVE TO GROW OUR OWN WHILE CLINTON ADMINISTRATION OFFICIALS ARE PROPOSING TO FORGE A NEW LINK BETWEEN HIGHSCHOOL EDUCATION AND THE WORK FORCE THEY ALSO COULD LEARN SOME USEFUL LESSONS FROM PROGRAMS SUCH AS STIHL'S WE HAVE TO ACKNOWLEDGE THE WAGES ARE HIGHER AND THE SKILLS ARE HIGHER IN GERMANY SAYS LABOR SECRETARY ROBERT REICH WE DO HAVE TO THINK ABOUT HOW TO TAKE THE BEST OF THE GERMAN SYSTEM AND COMBINE IT WITH WHAT WE HAVE HERE HE TALKS OF A CAREER PATH FOR PARATECHNICIANS IN WHICH SOME STUDENTS BEGINNING IN THE 11TH GRADE WOULD GO INTO A CAREERORIENTED CURRICULUM ALONG WITH SEVERAL DAYS A WEEK OF WORK AT COMPANIES IN SUCH FIELDS AS HEALTH CARE COMMUNICATIONS OR COMPUTERS THE ADMINISTRATION IS EARMARKING 12 BILLION OVER FOUR YEARS TO HELP CREATE SCHOOLTOWORK TRANSITION PROGRAMS IN ADDITION ABOUT 58 BILLION WILL BE FUNNELED THROUGH THE LABOR DEPARTMENT THIS YEAR FOR WORKER TRAINING MUCH OF IT AIMED AT PREPARING PEOPLE FOR JOBS THAT THE WHITE HOUSE HOPES COMPANIES WILL CREATEMUCH AS STIHL HAS DONE BUT STIHL'S PROGRAM HAS SOME POTHOLES TOO ALL ITS APPRENTICE GRADUATES ARE MEN THAT IS WORSE THAN IN GERMANY WHERE WOMEN OFTEN GET INTO PROGRAMS BUT ARE CONCENTRATED IN LOWPAYING CLERICAL SHOPASSISTANT AND HAIRDRESSING APPRENTICESHIPS SAYS LISA LYNCH A PROFESSOR AT MASSACHUSETTS INSTITUTE OF TECHNOLOGY'S SLOAN SCHOOL OF MANAGEMENT IN ADDITION STIHL'S PROGRAM ISN'T CHEAP STIHL OFFICIALS CALCULATE AN APPRENTICESHIP'S COST AT 50000 A YEAR PER TRAINEE A SUM THAT WOULD MAKE MOST SMALL COMPANIES WINCE AND POACHING IS A BIG CONCERN UNLIKE IN GERMANY WHERE LOCAL BUSINESS GROUPS PRESSURE COMPANIES NOT TO STEAL ONE ANOTHER'S EMPLOYEES THERE IS NO SUCH SYSTEM HERE OF THE 36 GRADUATES STIHL HAS LOST FIVE INCLUDING ONE OF THE ONLY TWO BLACKS WHEN STIHL OPENED ITS PLANT HERE IN 1974 IT BEGAN BY ASSEMBLING PARTS SHIPPED FROM GERMANY AND ELSEWHERE FIVE YEARS LATER WITH THE US MARKET FOR POWER TOOLS GROWING THE HOME OFFICE IN STUTTGART ORDERED THE PLANT TO EXPAND AND TO START BUILDING PRODUCTS FROM SCRATCH IT WAS A TALL ORDER SAWS MAY LOOK SIMPLE BUT THEY AREN'T A TYPICAL MOTOR IN A CHAIN SAW AND OTHER POWER TOOLS HAS AS MANY AS 200 PARTS WHICH STIHL MOLDS WITHIN 1/100TH OF A MILLIMETER 000004 INCH MOTORS CAN RUN UP TO 15000 REVOLUTIONS PER MINUTE ROUGHLY TWICE THE RPMS THAT WOULD BLOW OUT MOST CAR ENGINES STIHL'S PROBLEM WASN'T FINDING ASSEMBLYLINE WORKERS UNSKILLED LABOR IS PLENTIFUL IN VIRGINIA BEACH BUT IT SCOURED THE AREA FOR SKILLED CRAFTSMEN TO BUILD THE MACHINES TO MAKE THE FINELY TUNED PARTS OUR HUMANRESOURCES PEOPLE COULDN'T FIND THEM ANYWHERE ON THE EAST COAST MR MUELLER SAYS AFTER DECIDING TO DEVELOP THE SKILLED WORKERS IT NEEDED STIHL LOOKED TO ITS OWN EMPLOYEES SOME OF WHOM BARELY HAD PASSED HIGH SCHOOLS WITH WATEREDDOWN PROGRAMS SAYS THE 47YEAROLD MR MUELLER THE RESULT A SHOPFLOOR TRAINING PROGRAM AND WITH TIDEWATER COMMUNITY COLLEGE A 28CREDIT CURRICULUM RANGING FROM BLUEPRINT READING TO INDUSTRIAL MATHEMATICS ASSEMBLYLINE WORKERS QUICKLY REALIZED THAT THE APPRENTICESHIPS WERE THE PLACE TO BE FORTYFIVE EMPLOYEES TOOK AN ALGEBRA AND TRIGONOMETRY TEST FOLLOWED BY INTERVIEWS AND A MANUALSKILLS EXAMINATION WEATHERING A STORM BUT THE COMPANY FACED ITS OWN TEST IN 1981 JUST A YEAR AFTER IT HAD TAPPED 18 WORKERS FOR THE 8000HOUR WORK AND EDUCATION PROGRAM THE BOTTOM FELL OUT OF THE US CHAINSAW MARKET SALES SANK 50 TO 15 MILLION SAWS YET STIHL PRESSED ON WITH THE 450000AYEAR TRAINING PROGRAM EVEN THOUGH IT WAS GETTING LITTLE IMMEDIATE RETURN FROM THE APPRENTICES IT WAS THINKING AHEAD WHAT WOULD THE TYPICAL AMERICAN COMPANY HAVE DONE MR MUELLER ASKS RHETORICALLY CUT APPRENTICES CUT LABOR COSTS WE SAW IT AS A LONGTERM INVESTMENT AND NOW WE HAVE THE GOOD GUYS AND THE BENEFITS SINCE 1980 STIHL'S US REVENUE HAS MORE THAN DOUBLED TO 200 MILLION AND THE AVERAGE ANNUAL NUMBER OF POWER TOOLS PRODUCED PER EMPLOYEE HAS JUMPED TO 2100 FROM 800 AT THE CORE OF THE MANUFACTURING OPERATION ARE THE MACHINES BUILT AND KEPT RUNNING BY ITS APPRENTICESHIP GRADS MANY OF THE ASSEMBLY MACHINES HAVE TO RUN 98 OF THE TIME IF A MACHINE LIKE THIS IS DOWN MR MUELLER SAYS POINTING TO AN ENGINEASSEMBLY APPARATUS MY ASSEMBLY LINE IS DOWN AT SIX TO EIGHT HOURS I HAVE TO SEND MY PEOPLE HOME STIHL OFFICIALS SAY CUSTOMBUILT MACHINES DESIGNED AND PUT TOGETHER INHOUSE ARE MORE EFFICIENT BECAUSE THEY DON'T REQUIRE RETROFITTING EVERYTHING DONE INHOUSE HAS MORE COHESIVENESS SAYS JOHN GOLDEN WHO HEADS THE TOOLANDDIE SHOP AND RUNS THE APPRENTICE PROGRAM THAT GIVES YOU MORE EASE OF ASSEMBLY ON THE FACTORY FLOOR FOUR WORKERS STAND ABOVE A MACHINE ASSEMBLING FIVEFOOT ALUMINUM SHAFTS THAT WILL RUN FROM THE HANDLE TO THE MOTOR ON A LAWN TRIMMER ON A BASE OF INCHTHICK STEEL A WORKER INSERTS A DRIVE SHAFT INTO THE ROUND ALUMINUM TUBE CLAMPS SWOOP DOWN LIFTING THE TUBE ABOUT TWO FEET TO THE NEXT STATION WHERE MOUNTING HOLES ARE DRILLED THE CLAMPS SWING AGAIN AND HALF AN OUNCE OF GREASE IS HYDRAULICALLY SHOT INTO THE TUBE ONE LAST PICKUP AND A STEEL BLOCK CURVES THE SHAFT TO 45 DEGREES WHILE THE OTHER END IS CRIMPED THE TUBE THEN GOES TO THE NEXT STATION WHERE IT IS ATTACHED TO A HANDLE THE MACHINE TOOK ABOUT SIX MONTHS TO DESIGN AND BUILD AND STIHL EMPLOYEES ARE PROUD OF IT OTHER MANUFACTURERS USE AS MANY AS 25 PEOPLE TO DO THE JOB MR MUELLER SAYS WHEN THE MACHINE NEEDS SERVICING DON DOWDY DOESN'T NEED TO PULL OUT THE SCHEMATIC AND THE ASSEMBLY LINE DOESN'T HAVE TO WAIT HE IS ONE OF THE PEOPLE WHO BUILT IT AND HE KNOWS HOW IT IS DESIGNED THE APPRENTICE GRADUATES ARE VALUABLE IN OTHER WAYS TOO IN THE METALLURGY LAB HOLLIE TIEDEMANN FOUND AFTER A THREEDAY MICROSCOPIC EXAMINATION THAT A SHIPMENT OF RAW STEEL USED IN ENGINE CRANKSHAFTS WAS FLAWED IT HAD TOO MUCH FOREIGN MATTER WHICH WOULD WEAKEN THE STEEL AND THE ENGINE IT WAS SENT BACK TO THE SUPPLIER NOW SIX MORE WORKERS ARE BEING TRAINED IN THE APPRENTICE PROGRAM FOR DENNIS TACKETT THE OPPORTUNITY WAS WORTH A 256ANHOUR PAY CUT TO 809 AND WORTH SELLING HIS 17FOOT MOTORBOAT AND CUTTING BACK ON ENTERTAINMENT BUT THE 33YEAROLD VIRGINIA BEACH NATIVE IS LOOKING AHEAD TO WORK THAT BEGINS AT 14 AN HOUR FOR GRADUATES OF THE PROGRAM STANDING IN THE REMARKABLY CLEAN TOOLANDDIE SHOP THE THIRDYEAR APPRENTICE IS DISMANTLING AND CLEANING A 500POUND STEEL MOLD USED TO MAKE PLASTIC PARTS FOR THE SAWS THE WORK THOUGH NOT COMPLICATED IS A LOT HARDER THAN THE FIRSTYEAR APPRENTICE JOBS FOR ABOUT A MONTH THAT YEAR THE ROOKIES MAKE TWO DRIFTS SLIM STEEL PIECES WITH FLAT SIDES AND AN ANGLED TOP STARTING WITH RAW STEEL THEY SAW IT FILE IT DOWN POLISH IT BY HAND AND END UP WITH A PRODUCT USABLE ONLY AS A PAPERWEIGHT BUT THEY LEARN HOW TO DO BY HAND WHAT THE MACHINES DO IN ABOUT AN HOUR AND A HALF I KNEW PLASTIC PARTS CAME OUT OF THE MOLDS BUT I COULDN'T HAVE TOLD YOU HOW THE MOLDS WORK MR TACKETT SAYS EVERY SIX MONTHS APPRENTICES BUILD FROM SCRATCH A USELESS STEEL INSTRUMENT THE WORK WHICH GETS HARDER AND HARDER AS THE APPRENTICESHIP PROGRESSES CULMINATES IN A 32HOUR PROJECT TO MAKE A STAMPING DIE THAT CUTS SLOTS IN SHEET METAL THE APPRENTICES CAN USE ANY MACHINE IN THE SHOP BUT GET ONLY BLUEPRINTS AND RAW MATERIALS TWO NIGHTS A WEEK AT NO ADDITIONAL PAY MR TACKETT AND THE FIVE OTHER APPRENTICES ATTEND TIDEWATER COMMUNITY COLLEGE INITIALLY THE COLLEGE'S CURRICULUM WASN'T WHAT STIHL NEEDED SO THE COMPANY WORKED WITH THE COLLEGE BLUEPRINT READING FOR EXAMPLE IS NOW BEING TAUGHT PARTLY IN METRIC THE EUROPEAN STANDARD MODELS ARE DRAWN IN THE THREEIMAGE GERMAN ROTATION OF RIGHTFRONTTOP RATHER THAN THE US TOPFRONTLEFT THE COMPANY WAS UNCOMPROMISING THEY SAID IF YOU CAN'T DO IT THIS WAY WE'LL FIND SOMEBODY WHO CAN' RECALLS WARD WINFIELD A PROFESSOR OF DRAFTING AND DESIGN THE COURSES LIKE THE FACTORY WORK PROVIDE THE BUILDING BLOCKS AND GROW TOUGHER EACH YEAR OF THE PROGRAM SOME OF THE COURSES ARE SPECIALIZED MR TACKETT FOR EXAMPLE IS STUDYING COMPUTERAIDED DRAFTING AND DESIGN THE APPRENTICES MUST KEEP THEIR GRADES AT A C OR HIGHER AND ONLY ONE COURSE CAN BE MADE UP IF FAILED FOUR TRAINEES DIDN'T COMPLETE THE PROGRAM USUALLY THE EMBARRASSMENT FORCES THEM TO LEAVE THE COMPANY BUT MR MUELLER COMMENTS IT'S NOT THE COMPANY KICKING YOU OUT YOU KNOW YOU'RE KICKING YOURSELF OUT YOU DIDN'T PASS TO HONOR APPRENTICES WHO COMPLETE THE PROGRAM THE COMPANY BUYS DINNER FOR TWO AT A LOCAL SEAFOOD RESTAURANT IT ALSO GIVES EACH GRADUATE A COLLEGESTYLE RING WITH AN ORANGE STONE SURROUNDED BY THE WORKER'S INITIALS A MODEL CHAIN SAW AND A LOGO CREATED FOR THE PROGRAM THE GRADS KNOW THEY HAVE SOMETHING OTHER HIGHSCHOOLERS LACK THE HEART OF THE PROBLEM IN THIS COUNTRY IS THAT PEOPLE IN HIGH SCHOOL DON'T LEARN HOW TO MAKE A GOOD LIVING SAYS MR TIEDEMANN THE METALLURGIST OTHER COUNTRIES ARE KICKING OUR BUTT AND WE'D BETTER GET BETTER 9304190064 930419 BUSINESS BRIEF ATARI CORP WIDER NET LOSS IS POSTED FOR THE FOURTH QUARTER ATARI CORP SAID ITS FOURTHQUARTER NET LOSS WIDENED TO 219 MILLION REFLECTING CHARGES RELATED TO OPERATIONAL RESTRUCTURING AND INVENTORY NET LOSS FOR THE MAKER OF VIDEO GAMES AND PERSONAL COMPUTERS EQUAL TO 38 CENTS A SHARE COMPARES WITH 44 MILLION OR EIGHT CENTS A SHARE A YEAR AGO SALES PLUNGED 73 TO 256 MILLION FROM 961 MILLION THE RESULTS INCLUDE CHARGES OF 74 MILLION FOR RESTRUCTURING AND 141 MILLION FOR INVENTORY WRITEDOWNS FOR THE FULL YEAR 1992 THE COMPANY IN SUNNYVALE CALIF POSTED A NET LOSS OF 736 MILLION OR 128 A SHARE VS NET INCOME OF 256 MILLION OR 44 CENTS A SHARE IN 1991 ANNUAL SALES WERE 1273 MILLION DOWN 51 FROM 2600 MILLION 9304190063 930419 BUSINESS BRIEF ABN AMRO HOLDING NV COMPANY SEES LITTLE EFFECT FROM DAF BANKRUPTCY PLAN DUTCH BANKING GROUP ABN AMRO HOLDING NV SAID THE DECISION OF DAF NV TO FILE FOR BANKRUPTCY WON'T AFFECT THE BANKING GROUP SIGNIFICANTLY A SPOKESMAN FOR ABN AMRO WHICH HELD AN 824 STAKE IN THE OLD DAF SAID THE BANK'S INVESTMENT LOSSES WOULD BE COMPLETELY COVERED BY GENERAL CONTINGENCY PROVISIONS THIS WAS COMPLETELY FORESEEN AT AN EARLIER STAGE THE OFFICIAL SAID COURTAPPOINTED RECEIVERS FOR THE OLD DAF ANNOUNCED THURSDAY THAT THE COMPANY WOULD APPLY FOR BANKRUPTCY AS SOON AS POSSIBLE AT THE COURT IN THE HAGUE DAF SLID INTO RECEIVERSHIP ON FEB 2 AFTER FAILING TO SECURE EMERGENCY FUNDS TO SHORE UP ITS CAPITAL BASE AND ENABLE IT TO KEEP UP PAYMENTS TO CREDITORS A NEW COMPANY DAF TRUCKS NV WAS CREATED TO TAKE OVER THE PROFITABLE TRUCKMAKING ACTIVITIES 9304190062 930419 BUSINESS BRIEF SILICON VALLEY GROUP INC MANUFACTURER POSTS INCREASE IN SECONDQUARTER EARNINGS SILICON VALLEY GROUP INC SAID PRODUCT SHIPMENT DELAYS CONTRIBUTED TO SLIPPAGE OF FISCAL SECONDQUARTER NET INCOME FROM THE FIRST QUARTER HOWEVER EARNINGS MORE THAN TRIPLED FROM A YEAR EARLIER EARNINGS WERE 441000 OR ONE CENT A SHARE FOR THE QUARTER ENDED MARCH 31 COMPARED WITH 140000 OR ONE CENT A SHARE A YEAR EARLIER AFTER THE SAN JOSE CALIF COMPANY ISSUED MORE STOCK SALES ROSE TO 586 MILLION FROM 482 MILLION IN THE FIRST QUARTER THE MAKER OF SEMICONDUCTOR MANUFACTURING EQUIPMENT HAD EARNINGS OF 691000 OR THREE CENTS A SHARE ON SALES OF 541 MILLION IN OVERTHECOUNTER TRADING FRIDAY THE COMPANY'S STOCK CLOSED UNCHANGED AT 6875 9304190061 930419 TECHNOLOGY & MEDICINE INFORMATION AGE SYSTEM BUYERS FINALLY VALUE PRODUCTIVITY BY WILLIAM M BULKELEY PEOPLE WHO BUY COMPUTER SYSTEMS FOR BIG ORGANIZATIONS ARE FINALLY TRYING TO FIGURE OUT WHETHER A SYSTEM ACTUALLY MAKES THEIR WORKERS MORE PRODUCTIVE SEEM LOGICAL NOT IN THE WONDERFUL WORLD OF COMPUTER PROCUREMENT FOR YEARS COMPUTER BUYERS BASED THEIR DECISIONS ON THE SPEED AND THE NUMBER OF FEATURES IN A SYSTEM WITHOUT DETERMINING WHETHER THOSE THINGS HELPED PEOPLE WORK FASTER EVEN TODAY MANY BUYERS JUST TALLY UP BELLS AND WHISTLES BUT THE NEXT REAL BOOST IN PRODUCTIVITY WILL COME FROM FITTING THE TECHNOLOGY TO THE TASK NOT THE FASTER MIPS AND BIGGER CHIPS SAYS JUDITH OLSON WHO HEADS THE COMPUTER STUDIES DEPARTMENT AT THE UNIVERSITY OF MICHIGAN'S BUSINESS SCHOOL ACADEMIC EXPERTS IN THE BURGEONING FIELD OF HUMANCOMPUTER INTERACTION ARE TRYING TO CREATE METHODS TO PREDICT OBJECTIVELY WHETHER ONE SYSTEM WILL BE MORE PRODUCTIVE FOR PEOPLE THAN ANOTHER GOVERNMENT AND CORPORATE BUYERS ARE TRYING TO EVALUATE THE REAL IMPACT ON PRODUCTIVITY OF NEW COMPUTER SYSTEMS EVEN INFLUENTIAL TRADE MAGAZINES SUCH AS PC WEEK ARE CHANGING THEIR EVALUATION METHODS TO DO EXTENSIVE TESTS WITH USERS IN ADDITION TO RUNNING CHARTS LISTING THE NUMBER OF FEATURES A SOFTWARE PACKAGE HAS WHAT'S THE WHOLE POINT OF BUYING COMPUTERS NOT TO HAVE EQUIPMENT SITTING ON THE DESK BUT TO DO ONE'S WORK MORE EFFICIENTLY SAYS WILLIAM A DAVIS A WASHINGTON LAWYER WITH FRIED FRANK HARRIS SHRIVER & JACOBSON WHO HAS SUCCESSFULLY USED HUMANFACTORS RESEARCH IN DEFENDING COMPUTER CONTRACT AWARDS THERE'S A GREATER SENSITIVITY TO HUMAN FACTORS IN COMPUTING AT EVERY LEVEL LAST YEAR FEDERAL CONTRACTS APPEALS BOARDS ENDORSED USING HUMAN FACTORS IN AWARDING TWO VERY LARGE COMPUTER CONTRACTS ONE BOARD UPHELD THE INTERNAL REVENUE SERVICE IN CHOOSING AMERICAN TELEPHONE & TELEGRAPH CO EVEN THOUGH ITS 14 BILLION PRICE TAG EXCEEDED A 708 MILLION BID BY INTERNATIONAL BUSINESS MACHINES CORP AND 9148 MILLION BID BY A LOCKHEED CORP SUBSIDIARY IN THAT CASE THE IRS HAD RUN TESTS TO SEE HOW FAST USERS COULD PERFORM A TASK WITH EACH SYSTEM IT JUSTIFIED THE COST OF THE AT&T SYSTEM BY CALCULATING THE VALUE OF THE EMPLOYEES' TIME SAVED THE LOSERS ARGUED THAT SAVED TIME ISN'T REALLY WORTH MUCH THEY SAID THAT TIME IS JUST WASTED BY THE EMPLOYEE OR EXPENDED IN PERFECTING' THE TASK AT HAND ACCORDING TO THE COURT'S OPINION THE COURT AGREED WITH THE IRS THAT PROPER MANAGEMENT COULD HARVEST THAT SAVED TIME AND THAT AN AUDITOR MIGHT DO SOMETHING WORTHWHILE WITH IT LIKE CATCH AN IMPROPER DEDUCTION IN ANOTHER BIG CONTRACT DISPUTE A CONTRACT APPEALS BOARD OVERTURNED A NAVY AWARD TO INTERGRAPH CORP IT SAID THE NAVY HAD CLAIMED TO MAKE THE DECISION ON THE BASIS OF PRODUCTIVITY BUT HAD ACTUALLY JUST COUNTED FEATURES THE COUR NOTED THE NAVY NEVER MEASURED TIME THE NAVY SIMPLY ASSUMED A RELATIONSHIP BETWEEN THE NUMBER OF PRODUCTIVITYENHANCEMENT TOOLS AND SPEED OF OPERATION HUMAN FACTORS IN COMPUTING HAVE BEEN DISCUSSED FOR 20 YEARS PC SOFTWARE MAKERS SPURRED BY THE SUCCESS OF APPLE COMPUTER INC'S MACINTOSH IN THE 1980S HAVE EMPHASIZED EASE OF USE SETTING UP USABILITY LABS WHERE DEVELOPERS BEHIND ONEWAY MIRRORS CAN WATCH CONSUMERS STRUGGLE WITH THEIR DESIGNS BUT HUMAN FACTORS OFTEN GET SHORT SHRIFT IN LARGE SYSTEMS CURT MONASH EDITOR OF MONASH SOFTWARE LETTER SAYS MANY SOFTWARE COMPANIES SEEM TO BELIEVE EASE OF USE IS THE DIRECT OPPOSITE OF INDUSTRIAL STRENGTH PREDICTING HUMAN FACTORS WHEN A SYSTEM IS BEING DESIGNED IS DIFFICULT BONNIE JOHN A PROFESSOR AT CARNEGIE MELLON UNIVERSITY SAYS I'M TRYING TO DEVELOP THEORIES BASED ON KNOWLEDGE OF HUMAN PERFORMANCE TO PREDICT OUTCOMES WE ARE MAKING PROGRESS BUT I EXPECT THIS RESEARCH TO BE GOING FOR MY CHILDREN AND GRANDCHILDREN DR JOHN HAS SUCCESSFULLY PREDICTED PRODUCTIVITY IN SPECIALIZED SYSTEMS IN ONE CASE SHE ADVISED NYNEX CORP THAT A PLANNED COMPUTER SYSTEM WITH FASTER MICROPROCESSOR AND PHONE LINE SPEEDS FOR CALLERASSISTANCE OPERATORS WOULD ACTUALLY SLOW THEM DOWN BY ONE SECOND A CALL COSTING 3 MILLION A YEAR IN LOST PRODUCTIVITY SHE ANALYZED THEIR ACTIONS AND DISCOVERED THAT THE DESIGN OF THE NEW KEYBOARD WOULD MAKE IT LESS LIKELY FOR THEM TO USE BOTH HANDS ON SOME OPERATIONS LIMITING THEIR ABILITY TO DO TWO THINGS AT ONCE NYNEX CONDUCTED FIELD TESTS OF THE NEW SYSTEM AND FOUND HER ESTIMATES WERE PRECISELY RIGHT IRONICALLY SHE SAYS IF NYNEX HAD DONE THE TRIALS WITHOUT THE PREDICTION WHEN SOMETHING COUNTERINTUITIVE HAPPENS YOU SAY THE TRIAL WAS DESIGNED WRONG JOHN CARROLL MANAGER OF HUMAN INTERFACE THEORY AND DESIGN AT IBM SAYS HE ENDORSES DR JOHN'S EFFORTS TO BRING SCIENTIFIC RIGOR TO EVALUATING SYSTEMS HOWEVER HE SAYS HIGHERLEVEL CONCEPTS SUCH AS THE OVERALL DESIGN AND ORGANIZATION OF THE PROGRAM MATTER MORE THAN THE TIMEANDMOTION STUDIES SHE USED FOR OPERATORS HUMANFACTORS RESEARCHERS HAVE ESTABLISHED A VARIETY OF CONCEPTUAL RULES FOR DESIGNERS FOR EXAMPLE THE UNIVERSITY OF MICHIGAN'S DR OLSON SAYS THAT WHEN SOFTWARE DESIGNERS PRESENT USERS WITH MORE AND MORE OPTIONS YOU'LL HAVE MEMORY OVERLOAD SHE ADDS THAT CREEPING FEATURISM CAN SLOW YOU DOWN IN YOUR WORK EACH CHOICE YOU MAKE COSTS YOU AT LEAST TWO SECONDS BEN SHNEIDERMAN HEAD OF THE UNIVERSITY OF MARYLAND'S HUMANCOMPUTER INTERACTION LAB SAYS WE TRY TO UNDERSTAND BASIC PRINCIPLES EVENTUALLY YOU CAN MAKE PREDICTIONS IN NOVEL SITUATIONS HE SAYS THAT HIS RESEARCH HAS ESTABLISHED THAT UNFAMILIAR MENUS OF INSTRUCTIONS SLOW DOWN USERS IN DIRECT PROPORTION TO THEIR LENGTH BUT WHEN USERS ARE FAMILIAR WITH THE MENU THE DELAY HAS A MUCH SMALLER RELATIONSHIP TO THE NUMBER OF ITEMS SUCH KNOWLEDGE HELPS DESIGNERS OF SYSTEMS BUT ACADEMICIANS SAY THAT OPERATING TESTS WITH USERS PERFORMING REAL JOBS REMAIN THE BEST WAY TO TELL HOW PRODUCTIVE A SYSTEM WILL BE MOST BUYERS DON'T HAVE THE CLOUT TO GET VENDORS TO DO HEADTOHEAD TESTS BUT PC WEEK A NEWSPAPER FOR COMPUTERSYSTEMS BUYERS RUNS SYSTEMSTESTING SHOOTOUTS IN CONJUNCTION WITH BIG COMPANIES IN ITS MOST AMBITIOUS EFFORT YET IT RECENTLY REPORTED ON A COMPETITION AMONG SEVEN MAKERS OF SOFTWARE FOR CONTROLLING INDUSTRIAL PROCESSES IN A TEST IT DESIGNED WITH SARA LEE CORP THE VENDORS CREATED PROGRAMS TO MONITOR MACHINES IN A TEXTILEDYING OPERATION THE TEST INCLUDED THE DEVELOPMENT OF SIMULATED MACHINES WIRING TOGETHER A BIG NETWORK AND GETTING ADVICE FROM VARIOUS CONSULTANTS PAUL BANDROWSKI MANAGER OF ADVANCED TECHNOLOGY FOR SARA LEE SAYS IT WOULD HAVE TAKEN US OVER 1 MILLION TO PUT ALL THIS TOGETHER AT SARA LEE IT'S VERY DIFFICULT TO SPEND 1 MILLION TO EVALUATE SOFTWARE IN PC WEEK THE INFORMATION BECOMES AVAILABLE TO COMPETITORS BUT IT WILL REALLY HELP US MAKE DECISIONS LINDA BRIDGES PC WEEK'S MANAGING EDITOR FOR SPECIAL PROJECTS SAYS SUCH PROJECTS WILL BECOME MORE COMMON BECAUSE FIRMS ARE MOVING TOWARD TASKORIENTED COMPUTING VS METOO FEATURE LISTS 9304190060 930419 WHO'S NEWS ALLEN & CO CHOOSES KEOUGH AS CHAIRMAN NEW YORK ALLEN & CO AS EXPECTED NAMED DONALD R KEOUGH FORMER PRESIDENT OF COCACOLA CO AS CHAIRMAN OF THE INVESTMENT BANKING COMPANY THE 66YEAROLD MR KEOUGH RETIRED FROM COKE LAST WEEK SINCE 1981 HE WAS THE SOFTDRINK COMPANY'S ACTIVE AND HIGHLY VISIBLE PRESIDENT AND CHIEF OPERATING OFFICER HE ALSO RESIGNED AS A DIRECTOR LAST WEEK BUT HAS BECOME AN ADVISER TO COKE'S BOARD AT A MEETING FRIDAY ALLEN'S BOARD ELECTED MR KEOUGH CHAIRMAN A NONEXECUTIVE POSITION THE NEW YORKBASED CLOSELY HELD COMPANY HAS EXTENSIVE EXPERIENCE IN ENTERTAINMENT INVESTING HERBERT A ALLEN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE INVESTMENT BANKING FIRM IS ALSO A MEMBER OF COKE'S BOARD AND HAS WORKED WITH MR KEOUGH FOR MORE THAN A DECADE MR ALLEN WAS A DIRECTOR OF COLUMBIA PICTURES ENTERTAINMENT INC WHEN ATLANTABASED COKE OWNED THE STUDIO IN THE 1980S 9304190059 930419 CREDIT RATINGS BONNEVILLE POWER ADMINISTRATION STANDARD & POOR'S CORP PLACED ON REVIEW FOR POSSIBLE DOWNGRADE THE DOUBLEA RATING OF THREE REVENUE BOND ISSUES SECURED BY THIS FEDERAL AGENCY THAT TRANSMITS AND SELLS WHOLESALE POWER AFFECTED ARE 65 BILLION OF REVENUE BONDS ISSUED BY THE WASHINGTON PUBLIC POWER SUPPLY SYSTEMS 1116 MILLION REVENUE BONDS ISSUED BY THE EUGENE ORE WATER AND ELECTRIC BOARD AND 171 MILLION REVENUE BONDS ISSUED BY LEWIS COUNTY PUBLIC UTILITY DISTRICT NO 1 WASHINGTON S&P SAID THE DOUBLEA RATING REFLECTS BONNEVILLE POWER'S OBLIGATION TO PAY DEBT SERVICE ON THE BONDS AND ATTRIBUTED THE REVIEW TO THE DETERIORATION OF BONNEVILLE POWER'S FINANCIAL PERFORMANCE OVER THE PAST TWO FISCAL YEARS 9304190058 930419 BROKEN HILL SEES DAI HUNG OIL FIELD PRODUCING BY 1994 SPECIAL TO THE WALL STREET JOURNAL MELBOURNE AUSTRALIA BROKEN HILL PROPRIETARY CO SAID IT HOPES TO BEGIN OIL PRODUCTION AT THE DAI HUNG FIELD OFF THE SOUTH COAST OF VIETNAM WITHIN 16 MONTHS AT AN INITIAL RATE OF 25000 BARRELS A DAY BHP WILL SOON BEGIN DEVELOPMENT DRILLING ON THE DAI HUNG BIG BEAR OIL FIELD FOLLOWING THE SIGNING OF A PRODUCTIONSHARING AGREEMENT WITH THE VIETNAMESE GOVERNMENT LAST WEEK THE AUSTRALIAN COMPANY'S 44 STAKE IN THE DAI HUNG JOINT VENTURE MAKES IT THE MAJOR INVESTOR AND OPERATOR THE VIETNAMESE GOVERNMENT'S PETROVIETNAM HAS 15 THE MALAYSIAN STATE OIL COMPANY PETRONAS CARIGALI OVERSEAS SDN BHD HOLDS 20 AND JAPAN'S SUMITOMO CORP AND FRANCE'S TOTAL SA EACH HOLDS JUST UNDER 11 A RUSSIAN AND VIETNAMESE JOINT VENTURE VIETSOVPETRO DISCOVERED RESERVES IN THE FIELD OF BETWEEN 700 MILLION AND 800 MILLION BARRELS OF OIL EQUIVALENT A BHP SPOKESMAN SAID IT WILL MOVE ALMOST IMMEDIATELY TO BEGIN TEST DRILLING ON THE FIELD WITH THE FIRST OIL FLOW EXPECTED BY JULY 1994 HE SAID THE FIRST PHASE OF DEVELOPMENT AND PRODUCTION AT DAI HUNG IS EXPECTED TO COST 200 MILLION AUSTRALIAN DOLLARS US144 MILLION TO ESTABLISH AN OIL FLOW OF 25000 BARRELS A DAY THAT RATE WILL LATER BE ESCALATED 9304190057 930419 BUSINESS BRIEF TRIMARK HOLDINGS INC FISCAL THIRDQUARTER NET SOARED COMPANY ESTIMATES TRIMARK HOLDINGS INC BENEFITING FROM BOXOFFICE RECEIPTS ON THE HORROR MOVIE LEPRECHAUN AND STRONG VIDEO SALES EXPECTS TO REPORT NET INCOME FOR THE THIRD QUARTER ENDED MARCH 31 MORE THAN DOUBLED OR EVEN TRIPLED PRESIDENT AND CHIEF EXECUTIVE OFFICER ROGER BURLAGE SAID MR BURLAGE IN AN INTERVIEW SAID TRIMARK BASED IN SANTA MONICA CALIF EXPECTS TO REPORT THAT NET INCOME ROSE TO BETWEEN 11 MILLION AND 135 MILLION OR 24 CENTS TO 30 CENTS A SHARE FROM 473000 OR 10 CENTS A SHARE IN THE YEAREARLIER QUARTER THE COMPANY EXPECTS TO REPORT REVENUE OF BETWEEN 18 MILLION AND 20 MILLION ABOUT EVEN WITH 1992'S THIRDQUARTER REVENUES OF 198 MILLION LEPRECHAUN WHICH IS ABOUT AN EVIL LEPRECHAUN WHO TERRORIZES A SMALL MIDWESTERN TOWN OPENED JAN 8 AND HAS GROSSED MORE THAN 8 MILLION ITS GROSS MAY EQUAL OR EXCEED BY A COUPLE OF DOLLARS THE COMPANY'S BIGGEST DOMESTIC THEATRICAL HIT WARLOCK WHICH GROSSED ABOUT 9 MILLION MR BURLAGE SAID 9304190056 930419 OTC FOCUS RALLY'S STOCK WHETS FEWER APPETITES AS HAMBURGER CHAIN LOSES ITS SIZZLE BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK DON'T EXPECT TO SEE MUCH BEEF IN THE STOCK PRICE OF THE RALLY'S INC HAMBURGER CHAIN IN A GENERALLY WEAKENING RESTAURANTSTOCK GROUP IT HAS BEEN ONE OF THE WEAKEST THE FORMER HIGHFLIER HAS TUMBLED 40 FROM A FEBRUARY HIGH OF 24 1/8 FALLING 1/4 FRIDAY TO 14 1/2 MANY INVESTORS SAY THEY HAVE LOST CONFIDENCE IN THE GROWTH POTENTIAL OF THE QUICKSERVE DOUBLEDRIVETHRU RESTAURANT CHAIN NOT ONLY HAVE SALES FAILED TO MEET THE STREET'S HOPES FOR TWO QUARTERS BUT NOW SOME ANALYSTS ARE FRETTING OVER A SLOWDOWN IN OPENINGS OF NEW OUTLETS SALES AT COMPANYOWNED STORES OPEN MORE THAN A YEAR DROPPED 4 IN THE FOURTH QUARTER ANALYSTS SAY AND THE FIRST QUARTER ISN'T LOOKING ANY BETTER SAYS MARK SHERIDAN AN ANALYST WITH JOHNSON RICE & CO IN NEW ORLEANS MR SHERIDAN THINKS FIRSTQUARTER SAMESTORE SALES FELL 6 OR 7 FOR WHAT'S KNOWN AS A GROWTH STOCK' TO REPORT A DOWN QUARTER TAINTS THE WORD GROWTH' HE SAYS INVESTORS PAY FOR PERFORMANCE AND IF YOU ARE NOT DOING YOUR JOB THE STOCK IS GOING TO SUFFER COMPANY OFFICIALS COULDN'T BE REACHED RALLY'S IS ONE OF SEVERAL RESTAURANT STOCKS THAT HAVE FALLEN FROM THEIR 1992 PEDESTALS AS SOME OF THE HOTTEST STOCKS AROUND THE GROUP'S DROPOFF HAS CONTRIBUTED TO THE 15 DECLINE THIS YEAR IN THE NASDAQ COMPOSITE INDEX WHICH SLIPPED 354 TO 66678 ON FRIDAY THE RESTAURANT GROUP OF THE DOW JONES EQUITY MARKET INDEX IS DOWN 22 THIS YEAR BUT THIS INDEX DOESN'T REFLECT THE WIDE VARIANCE OF RESTAURANTSTOCK DECLINES WITH SOME AS LARGE AS 30 TO 40 SAYS DANIEL MILLER PORTFOLIO MANAGER OF PUTNAM COS NEW OPPORTUNITIES FUND BUT THOSE THAT HAVE COME DOWN THE HARDEST WERE THE ONES THAT HAD GROWN THE MOST LAST YEAR HE SAYS A LOT OF THESE STOCKS HAVE BEEN VERY EXPENSIVE WITH 30 TO 40 TRADING MULTIPLES STOCK PRICE AS A MULTIPLE OF PERSHARE EARNINGS AND WHEN THEY MISS THE NUMBERS THEY HAVE A LONG WAY TO COME CRASHING DOWN ON THURSDAY MR SHERIDAN LOWERED HIS RATING ON RALLY'S TO A SHORTTERM HOLD FROM A BUY HE HAS A LONGTERM ACCUMULATE RATING ON THE STOCK HIS INVESTMENT RATING DOWNGRADE IS ONLY THE MOST RECENT SIGN OF THE COMPANY'S TROUBLES IN MIDMARCH THE LOUISVILLE KY CONCERN TOLD ANALYSTS THAT BAD WEATHER IN AREAS WHERE MANY OF ITS RESTAURANTS ARE LOCATED WOULD HURT ITS FIRST QUARTER THIS DISCLOSURE WAS MADE LESS THAN TWO WEEKS AFTER THE COMPANY HAD SOLD A 75 MILLION ISSUE OF SENIOR NOTES DUE IN 2000 THROUGH PAINEWEBBER INC AFTER THIS ANNOUNCEMENT MR SHERIDAN CUT HIS ESTIMATE TO 15 OR 16 CENTS A SHARE FOR THE QUARTER FROM 19 CENTS BUT LATER WHEN THE COUNTRY WAS HIT WITH THE WORST STORM IN HISTORY I LOWERED MY ESTIMATE EVEN MORE MR SHERIDAN SAYS HIS ESTIMATE FOR THE QUARTER NOW IS 13 CENTS A SHARE COMPARED WITH LAST YEAR'S EARNINGS OF 17 CENTS A SHARE BEFORE A ONETIME ROYALTYRELATED CHARGE THAT MADE NET INCOME 14 CENTS MR SHERIDAN SAYS HE IS ALSO UNCOMFORTABLE WITH THE COMPANY'S PERFORMANCE WITH ITS NEWEST RESTAURANTS AND ITS APPARENT FAILURE TO OPEN AS MANY RESTAURANTS AS PLANNED FOR THE QUARTER RALLY'S STATED IN ITS 10K ANNUAL REPORT DATED JAN 3 AND FILED WITH SECURITIES AND EXCHANGE COMMISSION THAT IT HAD PLANNED TO OPEN 85 COMPANYOWNED RESTAURANTS THIS YEAR AN AVERAGE OF MORE THAN 21 A QUARTER ACCORDING TO PUBLIC DOCUMENTS AT THE END OF LAST YEAR THE COMPANY OWNED 197 OPERATING RESTAURANTS AS OF MARCH 14 THE COMPANY OWNED ONLY THREE MORE FOR A TOTAL OF 200 AS OF MARCH 14 THE RALLY'S SYSTEM CONSISTED OF 452 RESTAURANTS OF WHICH 252 WERE FRANCHISED EVEN IF RALLY'S DISCLOSES THAT IT OPENED SOME MORE RESTAURANTS BEFORE MARCH 31 IT WON'T HELP THE BOTTOM LINE FOR THE QUARTER SAYS MICHAEL HAINES PORTFOLIO MANAGER OF FOUNDERS ASSET MANAGEMENT'S FRONTIER AND DISCOVERY SMALLSTOCK FUNDS IN DENVER IF THEY DON'T HIT ONE QUARTER THEN THEY WON'T HIT THE YEAR HE SAYS IN THE RESTAURANT BUSINESS LOST BUSINESS IS SOMETHING YOU CAN'T MAKE BACK LATER MR HAINES SAYS HE SOLD MOST OF HIS RALLY'S HOLDINGS WHEN THE STOCK WAS AT 16 OR BETTER AND NOW IS GOING TO HOLD ON TO HIS REMAINING SHARES AT THIS POINT IT LOOKS LIKE A CHEAP STOCK TRADING AT 17 TIMES 1993 ESTIMATED EARNINGS OF 85 CENTS A SHARE HE SAYS BUT IN A NEGATIVE PSYCHOLOGICAL ENVIRONMENT ONE SELLER BEGETS ANOTHER AND THE HERD MENTALITY TAKES OVER WEAK PRICES IN TECHNOLOGY AND UTILITY STOCKS STEADILY SANK THE OVERTHECOUNTER MARKET THE NASDAQ COMPOSITE INDEX DROPPED 354 OR 053 TO 66678 DECLINING ISSUES OUTNUMBERED ADVANCERS 1353 TO 1307 ON TOTAL VOLUME OF 2268 MILLION SHARES DOWN FROM THURSDAY'S 247 MILLION INVESTORS ARE CAUTIOUS AS THEY WAIT FOR EARNINGS REPORTS TO BE RELEASED DURING THE NEXT FEW WEEKS TRADERS SAID NASDAQ'S INTERESTRATESENSITIVE ISSUES SUCH AS UTILITIES LOST SUPPORT AS BONDS FELL SUN MICROSYSTEMS DROPPED 1 5/8 TO 27 ON VOLUME OF 57 MILLION SHARES GOLDMAN SACHS REMOVED THE STOCK FROM ITS RECOMMENDED LIST TRADERS SAID MICROTEST SLID 1 3/8 TO 5 7/8 AFTER REPORTING WEAK FIRSTQUARTER EARNINGS OF THREE CENTS A SHARE IN THE YEAREARLIER QUARTER THE TOOLS SUPPLIER FOR LOCALAREA NETWORK CABLING EARNED 12 CENTS A SHARE INTEL FELL 1 5/8 TO 110 ORACLE SYSTEMS SLIPPED 1 5/8 TO 33 1/8 AND NOVELL SANK 1 1/4 TO 31 1/2